16264460
02 Report Preparation Description
04 Message from the Chairman
Special Focus: "Chain" Consolidate Governance to Green Empowerment to Collaborative Growth and
06 About Xiamen Xiangyu
Connecting the World to Jointly Build the Foundation Jointly Build Ecological Coexistence to Jointly Draw a
10 ESG Management
Serve the Needs of the for Development Civilization Beautiful Blueprint
Country
28 Standardized Operations to Achieve 46 Environmental Compliance to 62 Innovation-driven Escort Industrial
Efficient and Steady Governance Consolidate Responsibility Management Upgrading
34 Risk Control Orientation to Securely 50 Energy Conservation and Carbon 68 Gather Sincerity Build Cooperative
106 Key Performance Table Adhere to the Compliance Bottom Line Reduction to Respond to Climate Change Ecosystem
40 Honest Business Operation to Adhere to 54 Pollution Prevention and Control to 79 People-oriented Compose a Bright
110 System Certification Overview Commercial Ethics Promote Ecological Protection Future
Resource Conservation to Develop Take Responsibility Share Development
112 58 98Index of Indicators Recycling Economy Achievements
117 Reader Feedback Form
118 Independent Assurance and
Statement of OpinionXiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Report Preparation Description
The Environmental Social and Governance (ESG) Report 2024 of Xiamen Xiangyu Co. Ltd. is the third annual ESG report released
by Xiamen Xiangyu Co. Ltd. This Report aims to truthfully accurately and completely disclose the efforts and achievements made by Reporting Subject The disclosure scope of this Report covers Xiamen Xiangyu and its subordinate companies.the Company in practicing high-quality sustainable development to all stakeholders including governments regulatory authorities For the convenience of expression and reading the subordinate companies mentioned in this
shareholders investors customers suppliers industry employees and the public. Report are referred to by abbreviations and the specific references are as follows:
Reporting Period and As an annual report this Report covers the period from January 1 2024 to December 31 2024 Abbreviation Full Name
Time Frame (Hereinafter referred to as "The Reporting Period") and in order to enhance the comparability and
completeness of this Report some contents are appropriately extended to previous years. Xiamen Xiangyu Xiangyu Xiamen Xiangyu Co. Ltd.Company the Company We
Xiangyu Group Xiamen Xiangyu Group Corporation
Report Preparation United Nations 2030 Sustainable Development Goals (SDGs) Xiangyu Agricultural
Basis Sustainability Reporting Standards issued by Global Sustainability Standards Board (GRI
Heilongjiang Xiangyu Agricultural Products Corporation
Products
Standards).Suihua Xiangyu Suihua Xiangyu Cereals and Oil Technologies Co. Ltd.Guidelines No.14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies –
Sustainability Report (Trial) issued by the Shanghai Stock Exchange (Hereinafter referred to as Xiangyu SOE Nantong Xiangyu Shipbuilding & Offshore Engineering Co. Ltd."The Exchange Guideline") Xiangming Oils Rizhao Xiangming Oils Co. Ltd.Guidance No.4 of Shanghai Stock Exchange for Self-Regulation of Listed Companies– Xiangdao Logistics Xiangdao Logistics Group Co. Ltd.Sustainability Report Preparation issued by the Shanghai Stock Exchange (Hereinafter referred
Xiangyu Logistics Group Xiamen Xiangyu Logistics Group Co. Ltd.to as "Exchange Guidance")
Guidelines for Sustainability Report of Listed Companies issued by the China Association for Shaanxi Xiangdao Shaanxi Xiangdao Logistics Co. Ltd.Public Companies Xiangyu New Energy Xiamen Xiangyu New Energy Co. Ltd.Guidelines for Sustainability Report of Chinese Enterprises issued by Chinese Academy of Zhuoyu Supply Chain Xiamen Zhuoyu Supply Chain Management Co. Ltd.Social Sciences (CASS-ESG 6.0)
Xiangyu Singamas Xiamen Xiangyu Singamas Container Co. Ltd.Xiangyu Aluwin Xiamen Xiangyu Aluwin Co. Ltd.Data Description The financial data in this Report are all denominated in CNY. Chengdu Xiangdao Chengdu Qingbaijiang Xiangdao Logistics Co. Ltd.Chengda Products Chengda Products (Xiamen) Co. Ltd.Reliability Assurance The Company and all members of the Board of Directors warrant that the information disclosed
Fujian Xingda Fujian Xingda Import & Export Trading Co. Ltd.herein is true complete and accurate without any false records misleading statements or Taiping Logistics Xiamen Xiangyu Taiping Comprehensive Logistics Co. Ltd.substantial omissions. Xiangyu Products Xiamen Xiangyu Products Co. Ltd.Xiangyu Resources Xiamen Xiangyu Resources Co. Ltd.Xiangyu Elink Xiamen Xiangyu Elink Multitrans Co. Ltd.Report Access For the purpose of low carbon and environmental protection we will issue this Report in
electronic form. To access this Report you may read the electronic version on our website Xiangyu Smart Technology Xiamen Xiangyu Smart Technology Co. Ltd.(www.xiangyu.cn/index.aspx) or www.cninfo.com.cn. This Report is provided in both Chinese Beijing Xiangyu Digital
Beijing Xiangyu Digital Technology Industry Co. Ltd.and English versions for the readers. In case of any ambiguity or inconsistency due to language Technology
reasons between the two versions the Chinese version shall prevail. Xiangyu Superchain Xiamen Xiangyu Superchain Supply Chain Development Co. Ltd.Xiangyu Zhengfeng Tangshan Xiangyu Zhengfeng International Logistics Co. Ltd.Contact Information Address: 11F Block B XMXYG CORP. Building No. 85 Xiangyu Road Xiamen Area of Pilot Free Liangshan Xiangyu Liangshan Xiangyu Supply Chain Co. Ltd.Trade Zone Huli District Xiamen Yi’an Agricultural Products Yi’an County Pengyu Trading and Logistics Co. Ltd.Tel: 0592-651600 Xiamen Singamas Xiamen Xiangyu Singamas Container Co. Ltd.
02 03Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Message from the Chairman
Green is used as a brush to paint a new picture of sustainable development. We actively responded to the national "Carbon
Peaking and Carbon Neutrality" strategy integrating the concept of green development into all links of the industrial chain
so that the "green content" of supply chain was converted into the "gold content" of development. Through establishing an
environmental protection facility system promoting the application of clean technologies and optimizing the green logistics
network we have systematically reduced carbon emissions in the operational process making green development a
remarkable feature of the enterprise. Furthermore relying on the deep integration between digital technology and industrial
scenarios we launched supply chain service platforms such as "Yu Lian Tong" and "Smart Transportation" creating a new
model of green and efficient services to reshape the supply chain ecosystem with new quality productivity.Responsibility is used as the ink to write the answer to the era of mutual benefit and win-win. We built a development
community where employees and the enterprise could grow together and created a comprehensive customer-focused
service system exploring the optimal solution between economic benefits and public value. On the way to fulfilling
responsibilities and obligations we not only focused on the present to refine safety environmental protection and
occupational health systems empowering employees to realize their self-worth via systematic training and multi-dimensional
incentive mechanisms; but also we had a long-term perspective such as contributing to rural revitalization via precise
assistance and conveying warmth via environmental public welfare so that the mission and responsibility of the state-owned
enterprise was transformed into a solid force for social progress.Governance is used as the foundation to build a steady and sustainable corporate model. Supported by the modern
corporate governance system we built a scientific and standardized decision-making mechanism and constantly improved
the management structure and allocation of rights and responsibilities. Through optimizing the ESG governance structure
enhancing risk control and commercial ethics supervision and improving the quality of information disclosure we constantly
Dear investors partners employees and friends from all walks of life. consolidated the development foundation to create long-term sustainable value for stakeholders.Hello everyone. Looking back on 2024 our exploration and practice in various ESG fields were recognized by a wide range of stakeholders.These achievements would not have been possible without the support and trust of every investor partner employee and
In 2024 the complex situation of the world evolved further and the global economic trade order accelerated its friend from all walks of life. Looking forward Xiamen Xiangyu will continue to uphold the mission of "Benefit the World
reconstruction. In this year filled with challenges and opportunities Xiamen Xiangyu anchored its high-quality development Achieve Success Together" and stand at the forefront tide of global supply chain reconstruction integrating global resources
direction with strategic determination and drove its transformation and upgrading with innovative momentum. Moreover with an open and inclusive attitude forging supply chain resilience with innovation-driven posture reshaping the industrial
we consolidated basic business operations via adhering to the right path and innovation and forged core competitiveness chain ecosystem with the concept of green and sustainable development and taking professionalism and responsibility as a
through improving efficiency and enhancing quality achieving the steady improvement of the development quality. tool so that we will realize greater achievements in the new journey of building a modern industrial system further writing a
new chapter of high-quality corporate development.In 2024 adhering to the principle of long-termism we regarded ESG as the strategic support for corporate transformation
and upgrading and we integrated outstanding environmental performance profound social value and sound governance
systems into our business practices from all aspects so we promoted sustainable development with a higher perspective Chairman of Xiamen Xiangyu Co. Ltd.: Wu Jie
and more practical measures moving towards the goal of becoming a world-class supply chain service enterprise.
04 05Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
About Xiamen Xiangyu
Company Profile
Holding the corporate vision of "becoming a world-class supply chain service enterprise" and taking the mission of serving the national Business Coverage Area
strategy and regional economic development Xiamen Xiangyu adheres to the strategic idea of "based on the supply chain serving the
industrial chain and creating the value chain" and we rely on the "Xiangyu Comprehensive Service Platform of Digital Smart Supply The Company takes the countries and regions along the Belt and Road Initiative as the strategic layout direction actively expands the
Chain" to quickly respond to customer needs. Moreover we integrate global high-quality resources to provide a diversified service international market and has established extensive business connections with over 110 countries. Moreover we focus on linking high-
portfolio and customize and output integrated supply chain solutions in order to strive to build a safe stable smooth and efficient quality overseas procurement & sales channels and deeply exploring the overseas supply chain demands of large Chinese enterprises.industrial chain and supply chain system creating a mutually beneficial and win-win value ecosystem. At present the Company has In order to further serve global customers the Company has set up overseas operating entities in Singapore Vietnam Indonesia and
formed staple commodity supply chain service systems for agricultural products energy & chemicals metal minerals and new energy South Africa as "service stations" for overseas business empowering our international business network and providing customers with
and the market share of our core advantageous varieties ranks among the top in the industry. In addition Xiamen Xiangyu’s cooperative convenient and efficient local services. During the reporting period the Company achieved a total import & export and transshipment
merchants operate in over 110 countries and our investment enterprises cover the main provincial regions in China based on which we business in the amount of approximately USD 22.4 billion among which the total amount of import & export was approximately USD
further link to Europe and Asia and reach America and Africa to serve as a hub for cross-border cooperation and a bridge for international 14.4 billion. The cooperation amount with "BRICS" countries "Belt and Road" and the countries along thereof South America and African
exchanges contributing to building an open economic system which is mutually beneficial diversified balanced safe and efficient. countries was increased by more than 50% year-on-year and the export amount was increased by more than 60% year-on-year.Photovoltaic
Products Export
Netherlands Finland
Britain Europe
Germany Coking Coal Import
Canada
France
Mongolia
Spain Turkey
Uzbekistan United States
Japan
Crude Oil South Korea
Procurement Pakistan Total volume of import & export
Saudi Arabia and transshipment business in 2024:
UAE India
Mexico
Approximately USD 22.4 billion
Africa
Senegal Thailand
Vietnam Philippines
Nigeria
Guinea Southeast Asia
Colombia
Malaysia
Kenya Singapore
Indonesia
Congo
Xiangyu Group's 2.5 Million Tons of Brazil
Imports of Minerals Integrated Stainless Steel Smelting Peru
(e.g. Lithium Ore Project in Indonesia
Bauxite) South America
Zimbabwe Australia
Madagascar Iron Ore Import
Australia New Zealand
Key business operation countries Chile
Core logistics channels South Africa
International chartering of dry bulk cargo transportation Iron Ore and Thermal Coal
Argentina
Note: This is a non-standardized map and the logistics channels Import
are not the actual paths which are provided for reference only.
06 07Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Main Business Important Honors
The Company is committed to becoming a world-class supply chain service enterprise and focuses on providing one-stop supply chain
solutions for manufacturing enterprises. Our core services include staple raw and auxiliary material procurement and supply finished
product distribution logistics delivery supply chain finance and information consultation and we conduct constant self-innovation to
ensure the stability and efficient operation of the supply chain driving the industry towards a more efficient and sustainable development
direction and growing and creating value together with customers. 2023 Golden Bull Award for 2024 Shanghai Stock Exchange *
Most Valuable Investment Golden Quality * ESG Award
China Securities Journal Shanghai Securities News
I n c l u d i n g c o mp r e h e n s i ve
logist ics rai lway logist ics 2023 Top 100 National General
agricultural product logistics Top 50 Chinese Logistics Warehousing Enterprises
aluminum industry logistics Enterprises (Second Place) (Second Place)
Inc luding meta l minera ls etc. Including shipbuilding mineral China Federation of Logistics China Association of
agricultural products energy processing oil processing etc. and Purchasing Warehousing and Distribution
chemicals new energy etc. modity Logistic
Com s
Pro
n du
tio
The 8th China Excellent
IR "Best Capital Market 2023 "Excellent Issuer of
Communication Award" and Belt and Road Bonds"
Main Business "Best ESG Rookie Award"
Roadshow China and its sub- Shanghai Stock Exchange
Corporate Culture brand Excellent IR
Corporate Mission Corporate Vision Core Values
2024 China Treasury Awards
Benefit the World Achieve To become a world-class Value creation-centered "Best Treasurer * Global Top 100 2024 China Best
Success Together supply chain service Treasury Management Employer Award
company Award"
Zhaopin Limited
Treasury China
2024 Extraordinary Most Influential Employers
Employer 2025
Liepin Haitou
Corporate Spirit Five-star Behaviors Five Concepts
Grassroots Spirit Devotion Assume Responsibility Risk First
to Undertakings and Take Action Building a Firm
Be Pragmatic and Foundation in the Market
Efficient Cooperation for Win-win
Be Customer-oriented Results
Be Open and Inclusive Innovative Development
Be Pleasant and Two-wheel Drive
Straightforward
0809
Commodity Opera
facturingnu
nd
Ma
a
tio
n
cXiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
ESG Management
Holding the corporate vision of "becoming a world-class supply
chain service enterprise" Xiamen Xiangyu actively responds
to the 17 UN Sustainable Development Goals (SDGs) Board of Directors Authorize the Strategy and Sustainable Development Committee to supervise our ESG affairs
focusing on environmental friendliness social responsibility
and improvement of governance efficiency to fully safeguard
the rights and interests of stakeholders and we share our
ESG
direction and achievements in achieving the sustainable
Decision-
development goals via regular information disclosure to
making
stakeholders. Responsible for comprehensively leading and supervising ESG work under the direction of the Board of Directors
Level Identify and assess major ESG-related impacts risks and opportunities and study corporate ESG governance and
ESG Governance Structure provide decision-making consultation suggestions to ensure compliance with corporate needs and applicable laws & Strategy and Sustainable
Xiamen Xiangyu has established a sound ESG management Development Committee
regulations
Guide check and approve corporate sustainable development policies strategies and goals and assess and monitor
structure. The Board of Directors authorizes the Strategy the implementation
and Sustainable Development Committee to supervise and Review the Environmental Social and Governance (ESG) Report of the corporate
make decisions on our ESG affairs and the ESG Executive
Committee composed of corporate senior management
members manages ESG affairs while each relevant functional
department designates an ESG specialist as the basic unit for
ESG implementation effectively promoting ESG integration Based on the ESG decisions made by the Strategy (Investment & Development) Committee formulate ESG work
into the corporate daily operational activities. plans and related incentive assessment systems and coordinate resources of various departments
Manage material issues to provide analysis and suggestions for discussion by the Strategy and Sustainable
ESG Honors ESG ESG Executive Committee Development Committee so as to ensure supervision by the Board of Directors
Management (Corporate Senior Manage and guide the implementation of the ESG Working Group
Level Management Members) Coordinate the preparation of the ESG report
Other ESG management-related matters
The Company won the 2024 "Shanghai Stock Exchange * Organize communication with stakeholders such as the government suppliers and customers and establish ESG
Gold Quality * ESG Award" information transmission channels
ESG ESG Working Group Refine ESG-related management systems and implement ESG work plans
Executive (Key Members of Relevant Regularly report work results to the ESG Executive Committee
Level Functional Departments) Promote ESG capability-building work such as ESG knowledge publicity implementation and training
Constantly refine daily ESG materials retention in the departments to support ESG report preparation
ESG Governance Structure and Responsibilities
The Company won the "Best ESG Rookie Award"
10 1110 11Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Stakeholder Communication
Xiamen Xiangyu attaches great importance to communication and exchange with internal and external corporate stakeholders. We
conduct dialogues with stakeholders via various channels to deeply understand their demands and expectations and we strive to gain
the trust and support of all parties to promote constant improvement of sustainable management work.Key Stakeholders Expectations and Demands Our Response Key Stakeholders Expectations and Demands Our Response
*Market expansion to achieve business growth *Adhere to regulations and strictly follow industry best
*Business expansion Compliant operations*Robust operations to ensure continuous profitability and * practices
*Economic returns dividends *Pay taxes according to law *Contribute to society and actively fulfill legal tax obligationsInvestors Government and
*Standardized governance *High-standard governance to ensure true accurate and *Abide by commercial ethics *Moral leadership to adhere to high-standard commercial
Regulatory Authorities
*Sustainable development complete information disclosure *Drive economic development ethics
*Balanced development to contribute to social well-being Create jobs *Self-motivation to drive regional economic vitality*
*Create jobs to assist local employment
*Ensure the continuity and reliability of the supply chain
*Stable supply sources
Customers *Explore diversified markets and enhance distribution *Honest performance
*Sales expansion *Adhere to the contract spirit and fulfill contracts legally
capabilities Partners *Commercial ethics and
*Advocate moral norms to commit to information transparency
transparency
*Rights and interests safeguard *Safeguard employees’ legal rights and interests *Actively participate in the community to promote local
*Occupational health and safety *Create a safe and healthy work environment *Community development prosperity
Employees
*Training and promotion *Provide a continuous learning and career growth platform Community *Environmental protection *Advocate green action to protect the Earth’s future
*Remuneration and welfare *Ensure fair remuneration and comprehensive welfare *Contribute to society *Contribute corporate strength to achieve social common
prosperity
*Disclose corporate business *Transparent communication to timely share business
*Honest performance *Adhere to the contract spirit and fulfill contracts legally
progress progress
Suppliers *Open fair and impartial *Transparent procurement and standardized bidding & Public and Media
*Undertake environmental and *Actively take responsibilities to achieve synergy between
procurement procurement system
social responsibilities environmental protection and social development
12 13Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Analysis of Material Issues
To fully understand the key concerns of stakeholders and further integrate their demands and expectations into our own sustainable
development management practices the Company implements the principle of stakeholder participation to regularly conduct the
identification and analysis of material issues. During the reporting period the Company according to the Exchanger Guidance optimized
Corporate governance*
and adjusted the identified material issues from the previous year and we comprehensively formed this year’s dual importance issue Due diligence*
matrix from two dimensions: "importance to corporate finance" and "importance to the economy society and environmental impact".Innovation drive and digital development*
Data security and customer privacy protection*
Understand the background of corporate activities and business relationships Environmental compliance management*Labor management
Product and service safety and
Anti-bribery anti-corruption and anti-unfair competition quality*
Understand corporate activities and business relationships Lead industry Stakeholder communication development*
Understand the external objective environment
Energy utilization and water resource utilization Supply chain safety
Understand the main affected stakeholders
Pollutant emission and waste disposal
Green logistics Equal treatment for small and medium-sized enterprises
Rural revitalization and social contribution
Identify ESG issue database
Based on the issues identified by the Exchange Guideline and referring to peer enterprises rating standards etc.identify other potential material issues
General Very Important
Identify the issue-rated impacts risks and opportunities and summarize to form corporate issue database
Importance to Corporate Finance
Dual Importance Matrix
Evaluation and ranking of issue importance
Environmental Issues Social Issues Governance Issues
Identify the importance and financial importance assessment results via questionnaires interviews etc.Integrate the assessment results to form a dual importance issue matrix Environmental compliance Labor management Corporate governance*management*
Product and service safety and Due diligence*
Green logistics quality*
Stakeholder communication
Energy utilization and water Supply chain safety
resource utilization Anti-bribery anti-corruption and
Innovation drive and digital anti-unfair competition
Confirmation and reporting of issue importance Pollutant emission and waste development*
disposal
Data security and customer privacy
Confirm or adjust the importance issue results in combination with the opinions of the Strategy and Sustainable protection*
Development Committee Rural revitalization and social
contribution
Disclose the key points in the annual sustainability report in accordance with the requirements of the Exchange
Equal treatment for small and medium-
Guideline sized enterprises
Lead industry development*
Analysis Process for the Material Issues
Note: The starred (*) issues are of dual importance.
1415
Very Important
Importance to the Economy Society and Environmental ImpactXiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Special "Chain" Connecting the World to Serve
Focus the Needs of the Country
Concept
Xiamen Xiangyu has always been committed to serving the national strategy to
fulfill our corporate responsibilities and we consolidate the safety foundation of
the industrial and supply chains to ensure their smooth operation. Moreover we
rely on the multimodal transport system to enhance the efficiency of resource
circulation and energy utilization and we provide precise services to empower the
growth of small and medium-sized enterprises. Meanwhile we deepen international
cooperation under the Belt and Road Initiative to promote cross-border resource
exchange and regional coordinated development contributing core power to the
smooth domestic and international dual circulations and promoting high-quality
economic development.Our Actions
Ensure the Smooth Industrial and Supply Chains
Develop Multimodal Transportation
Help Small and Medium-sized Enterprises
Co-build the Belt and Road
16 17Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Ensure the Smooth Industrial and Supply Chains Cereal Industry Chain Services
Starting from establishing a specialized planting service platform and constructing a cereal logistics transportation system Xiangyu
Xiamen Xiangyu relies on its global resource integration capabilities and efficient logistics service system to fully ensure the stable Agricultural Products has established a "planting harvesting storage transportation sales and processing" full-chain supply system
supply of materials in key sectors such as metal minerals agricultural products energy chemicals and new energy and we optimize for cereals forming a service layout integrating seed & fertilizer supply agricultural planting cereal harvesting & storage logistics
the industrial chain collaboration and strengthen resource allocation to provide solid support for the safety and stability of the transportation raw cereal supply cereal processing and agricultural finance. Xiangyu Agricultural Products has also created the
industrial chain and supply chain as well as the sustainable development of the economy. "Xiangyu Speed" of "project approval construction production and effectiveness realization in the same year" making significant
contributions to achieving "national increase in production and farmers’ income growth" and it has become a reliable force for
ensuring national cereal security and driving regional economic development.Collaborative planting to produce high-quality cereals
Aluminum Industry Chain Services
At the planting end the Company collaborates with production factor suppliers to provide farmers with seeds pesticides
fertilizers and technologies avoiding problems such as asymmetric market information and backward technology equipment
Xiangyu Aluwin has deeply developed the aluminum industry chain constantly promoting internationalization layout and the which may lead to difficulties in meeting market expectations regarding planting varieties and quality. Additionally the Company
integration of material trade and industrial trade and it mainly explores the markets for recycled aluminum resources in South vigorously promotes the "order planting" business and signs order contracts with small-scale operators of agricultural production
Korea and the Middle East as well as recycled aluminum and transshipment aluminum ingots in Southeast Asia. Relying on the locking in cereal sources in advance to reduce the risk of cereal supply.Xiangyu aluminum industry factory Xiangyu Aluwin has built an internal new scrap aluminum self-circulation system to integrate the
advantages of overseas scrap aluminum procurement and it supplies low-carbon aluminum products to downstream customers * Help farmers reduce fluctuations in planting income and promptly obtain the latest market information.via incoming material processing cooperation achieving efficient recycling of scrap aluminum resources. In 2024 it won the AEO * Help production factor suppliers shorten the middle channels and links reducing the credit risks in dealing with farmers.
(Authorized Economic Operator) certificate issued by Xiamen Customs.
Ensure purchase of high-quality cereals at a high price
Deeply develop the aluminum industry chain constantly
At the purchasing end the Company collaborates with the government Dalian Commodity Exchange and insurance companies to
Focus on core products and mainstream manufacturing enterprises in the industry to deepen the "raw materials - finished
establish a system of "ensuring purchase of high-quality cereals at a high price" to reduce potential risks from natural disasters
products" integrated supply chain cooperation of aluminum industrial chain and expand direct supply channels of oversea ensuring both farmers’ income and corporate cereal purchase quantity.bauxite and petroleum coke refinery and the transshipment market for aluminum ingots to build a recycled aluminum circulation
system of "overseas scrap aluminum recycling - overseas recycled aluminum smelting - processing of materials supplied by *Attach great importance to protecting the interests of farmers. Adopt an efficient and automated purchasing model adhering
Chinese factories - finished products re-export" enhancing the global supply chain service capabilities. to the principles of "fairness justice and openness" to strictly prohibit behaviors such as taking bribes accepting gifts being
arbitrary and demanding and provide three meals drinking water and rest areas for farmers during the purchasing period to
maintain close contact with farmers.Promote the integration of aluminum industry logistics resources *Reach consensus with local governments of Fujin Bei’an and Suihua where the projects are located and conduct targeted
investment promotion along the industrial chain enabling manufacturers with synergistic effects to form an organic industrial
entity via the park model.Relying on the logistics and trade resources in the system expand pure logistics services focusing on core aluminum plants
develop cooperation opportunities for customers in aluminum industry cluster to incubate the aluminum alliance logistics
company and integrate internal and external resources to form specialized aluminum industrial logistics capabilities supporting Integrated warehousing and transportation for precise distribution
the efficient operation of the industrial chain.At the sales end based on the raw cereal sales markets in South China East China and Southwest China the Company further
expands sales markets in North China regions such as Henan and Shandong. In 2024 the Company’s raw cereal sales exceeded
9 million tons establishing a reasonable and well-structured sales network covering both the north and the south. The Company
has established seven modern cereal storage and logistics centers in major cereal-producing areas in Heilongjiang Province
including Fujin Bei’an Yi’an Suihua Wudalianchi Nenjiang and Nehe. It has built a total storage capacity of 13 million tons at
the cereal source base established in Heilongjiang contributing to the high-quality development of the cereal industry and the
consolidation of the national food security defense line.In terms of logistics the Company has constructed a cereal logistics transportation system establishing a "transporting cereal
from the north to the south" intermodal transportation channel integrating land railway and sea constantly deepening "logistics
and trade linkage". The Company stores over 4 million tons of national reserve cereals annually reaching up to 15 million tons at
peak periods covering multiple varieties such as corn and rice and it has smoothly passed all national reserve cereal inspections
at a higher standard ensuring that national cereals can be transported and used as needed.
18 19Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
According to data from the United States Geological Survey In the logistics of the photovoltaic industry there are problems such as
(USGS) in 2024 China’s lithium reserves only accounted unstable transportation routes high value of goods unstable quantity
New Energy Industry Chain Services for 6% of the global reserves but the production of power of goods difficulty in matching transportation resources across regions
batteries was 70% of the global production so the dependence and lagging tracking. The Company relies on the Xiangyu Smart
Focusing on the lithium battery (energy storage) photovoltaic and wind on lithium resource import was high and domestic lithium Transportation Network Freight Platform to integrate and match supply
power new energy industries Xiangyu New Energy concentrates on the carbonate smelters generally faced raw material shortages. In and vehicle sources and optimize rail-water intermodal transportation
supply chain and comprehensive energy management in the new energy 2024 the Company introduced overseas high-quality lithium and warehousing logistics services solving the problem of mismatch
mines (with an operating volume of over 500000 tons and between transportation capacity and demand. We also improve delivery
field and it connects major domestic and overseas mining companies
a market share of 8%) to ensure the supply of raw materials timeliness via full-process visual tracking to ensure the progress of
smelters midstream processing plants and downstream end customers
for domestic smelters and operated lithium carbonate over customer engineering construction. As of the end of the reporting
in the industry providing a full-process comprehensive service solution 45000 tons (with a market share of approximately 5%) to period the Company has served leading new energy enterprises
of supply chain. It further deeply integrates the industrial chain supply effectively ensure the production of material factories and such as China Energy Engineering Corporation Limited China Power
chain and value chain and it is committed to becoming a world-class battery factories contributing to the stable operation of new Construction Corporation and Longi and has been awarded the Grade
comprehensive operator of the new energy supply chain. energy industry chain. A supplier logistics performance of Longi many times.Develop Multimodal Transportation During the process of developing the multimodal logistics system the Company has achieved a breakthrough in the transportation structure of "railway-water intermodal short-distance transportation of road" providing customers with high-quality full-process and
customized logistics solutions for staple commodities and has also successfully created several green low-carbon and efficient
Xiamen Xiangyu actively responds to the national call for "road-to-railway bulk-to-container and land-to-water" and integrates premium lines such as "inter-provincial circulation of aluminum product" "transporting cereals from north to south" "transporting
the "Logistics Ground Network" and "Digital Intelligence Sky Network" to create a multimodal transportation model with corporate coal from west to east" and "transporting coal from north to south" significantly reducing the comprehensive energy consumption
characteristics of "logistics leadership + intelligent empowerment + high-level collaboration" which optimizes resource allocation and pollutant emissions in the logistics link.and constructs green logistics channels forming a 3D transportation network covering major economic regions around the world.Line Name Channel Construction Measures for Pollution Reduction and Energy Conservation
Relying on the railway node advantages of Xiangdao Logistics
Approximately 1000 self-owned transportation vehicles with a cumulative integration of over 160000 social Relying on its own aluminum supply chain
Major channel for the Company has completed the transportation structure Road operating volume advantages the Company
vehicles achieving a transportation volume of over 23 million tons in the reporting period. adjustments of "road-to-railway" and "bulk-to-container" and the
"Inter-Provincial has established "Xinjiang - Henan" "Shandong
transportation by large trucks has been replaced with railway
Circulation of - Inner Mongolia" and other major channels container shipments achieving the quality improvement and
for the circulation of alumina and electrolytic
12 railway freight yards/stations (10 self-owned and 2 entrusted) covering staple commodity distribution hubs Aluminum Product" efficiency enhancement of aluminum product transportation as
aluminum.in the central and western regions with 87 dedicated lines of railway approximately 3800000 m2 container well as energy conservation and emission reduction.Railway
yards and warehouses and over 30000 self-owned containers with an annual transportation capacity of over
57 million tons. Compared with railway and road transportation water Actively arranging and connecting key
transportation has lower energy consumption and pollutant
logistics nodes such as northern production
Channel for emissions. The transportation mode of being "dominated areas port clusters and southern sales
3 domestic self-owned dual-purpose shipping vessels with a cumulative integration of approximately 3000 by railway and water transportation supplemented by road "Transporting areas the Company has constructed the
Water social shipping vessels forming a combined "self-owned + cooperative" water transportation capacity
transportation" the proportion of road transportation distance
Cereals from North major channel for "Transporting Cereals from
transpor- configuration. 2 overseas self-owned shipping vessels and continuous integration of international distribution has been reduced to less than 10% of the total distance to South" North to South" creating a corporate specific
tation which lowers transportation costs and energy consumption shipping vessel resources creating international dry bulk cargo marine transportation and international multimodal transportation system of road
achieving cost reduction and efficiency enhancement in cereal
container marine transportation logistics capabilities. railway water and warehouse.transportation.Domestic establishment of 5 major cereal purchase platforms with self-owned and cooperative storage Relying on Xiangdao Logistics node layout in
capacity of approximately 12 million tons equipped with 20 dedicated lines of railway; operation of 69 self- Channels for the central and western regions the Company The energy consumption and pollutant emissions of railway
Warehou- owned and leased management warehouses with an area of over 1600000 m
2; 8 storage yards with an area "Transporting Coal transports western coal from Shanxi Shaanxi transportation are only 15% and 8% of those in road
2 and Inner Mongolia to regions such as sing of over 500000 m ; obtained 20 futures delivery qualification licenses with a storage capacity of approximately from West to East" transportation respectively. The Company transports coal in a
Yunnan Guizhou Sichuan Shandong Hunan
1 million tons; overseas storage nodes are normally maintained at 50 and forward-looking strategic layouts of and "Transporting "road-to-railway" manner and sprays dust suppressant on the and Jiangxi via railways establishing major
over 150 are in place. Coal from North to surface of the coal to form a protective film before the train transportation channels such as "Transporting
South" departs controlling dust dispersion and dust pollution.Coal from North to South" and "Transporting
The Multimodal Transportation Logistics System of "Road Railway Water and Warehouse" Coal from West to East".
20 21Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Help Small and Medium-sized Enterprises
Xiamen Xiangyu has always been committed to empowering the development of small and medium-sized enterprises. We have Yu Cang Rong Yu Cai Rong Yu Cai Rong Yu Cai Rong
innovated the digital technologies and financial services of supply chain to construct an efficient and transparent trust bridge
between small & medium-sized enterprises and financial institutions which helps these enterprises revitalize their assets and Customers apply Customers apply for Customers apply for Customers apply for
accelerate turnover injecting powerful momentum into their high-quality development. for financing loan collateral financing from collateral financing from financing from banks
disbursement from banks based on the banks based on the based on the transaction
financial institutions purchase orders signed in-transit spot goods data with the Company.based on the goods in their trade with the transported by the
"Yu Lian Tong" Digital Supply Chain Service Platform stored in corporate Company. Company.warehouse.The Company relies on technologies such as block chain Internet of Things big data and artificial intelligence to create a digital
warehouse and in-transit tracking system and to construct a digital supply chain service product matrix called "Yu Lian Tong" which
enables corporate inventory for sale to become effective collateral for financing loans that are "visible controllable and marketable"
thereby building a "datamation" trust bridge between customers and financial institutions and efficiently solving the financing "Yu Lian Tong" Product Matrix
difficulties of small and medium-sized enterprises. Compared to other non-bank financing channels it can reduce financing costs
for small and medium-sized enterprise customers by 10% to 40% and it can empower the risk control management of the banks
via capabilities such as "controlling goods understanding industries traceability and marketability". Meanwhile "Yu Lian Tong" can
Responding to national policies it collaborates with financial institutions to create financial
achieve full-process online operations. Enterprises can initiate financing requests with a single click and complete the full process products of digital supply chain reducing the difficulties of financing for small and medium-
from collateral initiation to bank loan disbursement within 5 to 10 minutes thereby expanding financing channels for the industrial In terms of social sized enterprises including difficulties in obtaining financing paying high interest rates
sector improving financing efficiency and reducing financing costs. benefits: and experiencing slow financing processes. It empowers industries and provides excellent
support for the development of industrial clusters.Goods Supervision
"Yu Lian Tong" Digital Supply Chain Service Platform Digital Asset Certificate While solving the financing difficulties of enterprises at the upstream and downstream of
Risk Management (Electronic Warehouse
In terms of
the industrial chain it also revitalizes the corporate funds occupied by inventory improving
Receipts etc.) economic corporate operation efficiency enhancing corporate market competitiveness and promoting
benefits: sustainable development of the corporate.Funding Party Customer Party
Yu Cang Rong Yu Cai Rong Yu Tu Rong Yu Shu
(Warehouse (Procurement (In-Transit Rong (Data
Admission Financing) Financing) Financing) Financing) Service Fee The full-process online operation and the interconnection of data with financial institutions
In terms of enable enterprises at the upstream and downstream of the industrial chain to efficiently
ecological complete the process from collateral/financing initiation to the loan disbursement by
Core Capabilities
benefits: financial institutions and the full process is paperless significantly improving the corporate
operation efficiency and achieving green and ecological operation.Goods Management Cargo Rights Control Credit Empowerment of Price Mark-to-market Goods Value
Risk Handling
Electronic Warehouse Receipts Warning Sustainable Contributions of "Yu Lian Tong"
"Yu Lian Tong" was selected as
"Yu Lian Tong" Digital Supply Chain Service Platform
A Typical Case of A Typical Case of High-quality Development
"Yu Lian Tong" has a rich product matrix and is capable of conducting diverse collateral financing businesses. Moreover it
Digital Transformation of Modern Circulation Enterprises with
comprehensively considers the corporate financing demand and bank load disbursement requirements to design flexible and
of Trade in Xiamen Digital Smart and Green Innovation
customized financing solution achieving on-demand financing immediate borrowing and repayment and maximization of financing
benefits and it has achieved cooperation with over ten financial institutions. As of the end of 2024 "Yu Lian Tong" has cumulatively
obtained special credit lines of CNY 13.7 billion and assisted customers in completing approximately CNY 7.4 billion in financing.
22 23Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Southeast Asia international logistics channel
Co-build the Belt and Road
*China-Indonesia channel: The China-Indonesia logistics channel has a transportation volume of approximately 26 million
tons with a year-on-year growth of over 50%.In recent years Xiamen Xiangyu has taken the countries and regions along "Belt and Road" as the strategic layout direction to *International dry bulk channel: Deep development of products such as coal and petroleum coke with a 70% year-on-year
actively explore the international market and it has cooperative merchants in over 110 countries. It focuses on linking overseas increase in 2024 in maritime business volume.high-quality procurement and sales channels and exploring the overseas supply chain demands of large Chinese-funded *China-Vietnam and China-Thailand channels: The China-Vietnam and China-Thailand logistics channels have a
transportation volume of 36000 TEUs with a year-on-year growth of over 20% and it extends cross-border logistics
enterprises and it facilitates the dual circulation of domestic and international markets via a sound international commodity service business around Vietnam and Thailand expanding the intermodal logistics network.network and international logistics capability system.Asia-Europe international logistics channel
Build an International Commodity Service Network *In 2024 it was approved as the China-Europe Railway Express (Xiamen) platform company qualification and it deeply developed the domestic and overseas point locations constantly to build a "carrying pole" business around both ends based
on the upstream and downstream industrial clusters. In addition while maintaining the advantages of the entire railway line
In recent years the Company has constantly advanced the construction of overseas platforms and accelerated internationalization of international trains it continued to expand full-channel transportation methods such as sea-rail intermodal transportation
layout. As of now it has established platform nodes in major intercontinental regions such as North America Asia Oceania and and truck-air transportation and also explored new channels such as China-Kyrgyzstan-Uzbekistan and across the Caspian
Africa serving as "service stations" for overseas business development and leveraging regional synergy. Sea.Indonesia platform Africa international logistics channel
*Based on the three main premium routes in Eastern and Southern Africa it further consolidates the multi-modal
*Relying on abundant coal and nickel ore resources and after deep development of integrated service projects for stainless transportation advantage. In 2024 through a "container + bulk ship" combined transportation solution it provided
steel smelting it directly connects local mine resources for integrated operation of the industrial chain and supply chain. personalized services for Chinese mining enterprises offering full-process comprehensive services of supply chain for ore
enterprises such as bauxite lithium concentrate chromium ore and copper ore with an annual logistics service volume of
Vietnam platform over 3 million tons effectively ensuring the security and stability of the import supply chain of metal minerals.*Combining the industrial transfer in Southeast Asia it extends overseas downstream in plastic chemical products aluminum
ingots aluminum rods black steel and cassava products and actively expands logistics resources.Case The China-Europe Railway Express Helps Xiamen Build an International Supply Chain Hub
Singapore platform
In June 2024 Xiangyu Elink (Xiamen Xiangyu’s affiliated company) successfully launched its first China-Europe Railway
*Focusing on oil product operations it actively serves domestic refineries and local ship fueling businesses. Meanwhile it Express (Xiamen) after obtaining the qualification of the railway express operation platform company in Xiamen City.jointly establishes project subsidiaries to accelerate the establishment of overseas sales networks for new energy products. Compared to international shipping this mode can shorten the transportation time by 10 to 20 days. Xiangyu Elink adopts
the model of "rapid custom clearance of railway" to achieve intelligent supervision one-stop inspection and release and
China Hong Kong platform digital customs clearance and the custom clearance time can be saved by 24 hours effectively ensuring the efficient
passage of the China-Europe Railway Express at the departure ports. Relying on a railway express network covering more
*Leveraging its advantages in finance taxation and talent it helps international trade of corporate constantly develop and than 20 countries in Europe Central Asia and Southeast Asia and the scale advantage of an annual shipment volume of
nearly 40000 TEUs it integrates multimodal transport resources such as "road railway water and warehouse" to provide
introduce high-end international talents.customized container services and "door-to-door" comprehensive logistics solutions for enterprises along the "Belt and
Road" helping Xiamen strengthen its function as an international supply chain node and promoting the efficient circulation
New Zealand platform of regional goods and factors.*Investing in over 6000 hectares of forest land resources it builds a comprehensive service platform for forest product supply
chain.Central purchasing center in Nigeria Africa
Case Xiangyu New Energy Helps the Construction of Photovoltaic Power Stations in Pakistan
*Deeply develop the lithium product supply chain operation.Xiangyu New Energy has been constantly promoting the export of photovoltaic products to Pakistan helping the development
of local photovoltaic industry. As Pakistan lacks the ability to independently produce photovoltaic modules imports have
Construct an International Logistics Capability System become its main source. In response to the call of "go global" strategy Xiangyu New Energy has provided integrated supply
chain solutions for photovoltaic modules inverters cables and circuit breakers to Pakistani customers assisting in the
The Company has established core logistics transportation channels such as China-Southeast Asia China-Europe/China-Central Asia construction of photovoltaic power stations in Pakistan to meet the local growing energy demands. By introducing advanced
international trains and China-Africa. Meanwhile it is exploring local logistics businesses such as overseas warehouses and customs Chinese photovoltaic technologies to Pakistan Xiangyu New Energy has made outstanding contributions to achieving the
clearance in Vietnam Indonesia Thailand and South Africa. In 2024 it expanded overseas logistics suppliers by over 100 constantly global "carbon peaking and carbon neutrality" goals and promoting green and low-carbon development.enhancing the international logistics capabilities in regions such as Southeast Asia Africa and the Eurasian Continental Bridge.
24 25Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Governance Green Empowerment to Collaborative Growth Conclusion
to Jointly Build Jointly Build Ecological and Coexistence to
the Foundation for Civilization Jointly Draw a Beautiful
Development Blueprint
01 Consolidate Governance to Jointly Build the Foundation for Development
Concept
Xiamen Xiangyu is committed to establishing and refining corporate
governance structure aiming to enhance internal management and
supervision mechanisms to improve the scientificity and transparency of the
decision-making process. During the interactions with investors the Company
actively promotes the maintenance and optimization of communication
channels striving to build a mutually trusting and beneficial relationship.The Company has a zero-tolerance attitude towards corrupt behaviors and
resolutely opposes any form of improper conduct.Our Actions
Standardized Operations to Achieve Efficient and Steady Governance
Risk Control Orientation to Securely Adhere to the Compliance Bottom Line
Honest Business Operation to Adhere to Commercial Ethics
26 27Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Standardized Operations to Achieve Efficient and Steady Governance
Xiamen Xiangyu has always maintained a high sense of responsibility and mission dedicated to establishing a scientific complete and
efficient corporate governance structure. The Company constantly strengthens its internal management and supervision mechanisms
General
to optimize the decision-making process and enhances the scientificity and transparency of decisions to effectively safeguard the legal
Meeting of
rights and interests of shareholders laying a solid foundation for the Company’s long-term stable growth. Meanwhile the Company
Shareholders
actively expands communication channels with investors and constantly optimizes investor relations management enhancing market
Party Committee
trust and confidence.Corporate Governance
Xiamen Xiangyu actively creates a listed company Remuneration and Appraisal
governance system that meets the requirements Board of Supervisors Committee
of modern enterprise systems in strict accordance
with the Company Law Securities Law Code
Board of Directors Audit Committee
of Corporate Governance for Listed Companies
and other applicable laws & regulations. The
Company constantly optimizes the governance Strategy and Sustainable
structure and institutional system and enhances Development Committee
internal management mechanisms to promote Secretary of Board of
the standardization and refinement of corporate Directors
governance while striving to enhance governance Senior Management Qualification
Appraisal Committee
efficiency ensuring the stable corporate operation.Risk Management Committee
Work Safety Committee
Operation of the Three Boards Investment Review General Manager Committee (Executive Team)
Budget Control Committee
The Company has established a management Digital Transformation
system with the General Meeting of Shareholders Committee
the Board of Directors the Board of Supervisors
and the management team as the main body. The
Board of Directors has three special committees:
the Strategy and Sustainable Development Information Technology Administrative
Strategic Logistics Operation
Finance Center Investment Management Development Risk Management Center Center Center
Committee the Audit Committee and the Center Center Center
Remuneration and Appraisal Committee aiming to
provide scientific and professional advice for the
decision-making of the Board of Directors.The Company has clearly defined the
responsibilities and authorities of each level in
decision-making supervision and execution
forming a sound governance structure and strictly
follows the applicable regulations to ensure the
standardization of the operations of the Three
Boards effectively safeguarding the rights and
interests of investors and other stakeholders.Note:The Company renamed the "Board Strategy (Investment and Development) Committee"
to the "Board Strategy and Sustainable Development Committee" in June 2025.Corporate Organizational Structure
2829
Disciplinary Inspection Commission Discipline Inspection and Supervision Office
Party Committee Office
Legal Affairs Department
Audit Department
Risk Control and Compliance
Department
Internationalization Development
Department
Industry Research Department
Supply Chain Development
Department
Operation Management Department
Logistics Management Department
Logistics Audit Department
Construction Management
Department
Safety Supervision Department
Human Resources Department
Investment Development
Department
Investment Management
Department
Securities Affairs Department
Fund Department
Accounting Department
Financial Management Department
Administrative Department
General Manager’ s Office
Architecture Management
Department
Data Application Department
Application Management
Department
Digital Transformation OfficeXiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Independence and Diversity of The Board of Directors
General Meeting of Shareholders The Company actively promotes the independence and diversity of its members in Board of Directors and senior management.The members possess extensive industry experience and professional capabilities in finance and law to ensure the comprehensive
governance and insight of the Board of Directors so they can make reasonable decisions to enhance risk response capabilities and
The Company’s controlling shareholders adhere to the code of conduct and legally protect the interests of investors improving the professionalism of corporate governance.exercise the rights of the investor via the General Meeting of Shareholders. They
participate in and supervise corporate decision-making by appointing directors
and supervisors and they do not interfere with legal decision-making and specific Professional Knowledge and Skills Primary Experience
production & operation activities of the corporate. The Company and the controlling
shareholders are independent in terms of personnel assets finance institutions Name Position Gender AgeComprehensive
and business and corporate Board of Directors Board of Supervisors and internal Industry Finance Law Industry Finance Lawmanagement
functional departments operate independently.Wu Jie Chairman ? ? ? Male 44
Board of Directors Deputy Chairman Qi Weidong Male 59General Manager ? ? ? ? ?
Deng Qidong Director ? ? ? Male 55
The corporate Board of Directors protects the legal rights and interests of the
Company and all shareholders in strict accordance with the provisions of the Lin Junjie Director ? ? ? Male 52
Articles of Association and the Rules of Procedure for the Board of Directors. The
Board of Directors has established the Remuneration and Appraisal Committee Wang Jianli Director ? ? ? ? ? Female 53
the Audit Committee and the Strategy and Sustainable Development Committee
which provide consultation and suggestions for the decision-making of Board of Cai Sheng Director ? ? ? ? ? Male 43
Directors. Independent
Xue Zuyun
Director ? ? ? ? ? Male 62
Board of Supervisors Independent Liu Bin Male 63Director ? ? ? ?
Independent
Liao Yixin Male 68
The corporate Board of Supervisors supervises the convening procedures/ Director ? ? ? ?
resolution matters of General Meeting of Shareholders and Board of Directors the
implementation of the resolutions of the General Meeting of Shareholders by the Note: Cai Sheng has been appointed as a director of the Company since March 28 2025.Board of Directors the financial situation of the corporate and the performance of
duties by directors and senior management personnel in strict accordance with the Diversified Composition of the Board of Directors
provisions of the Articles of Association and the Rules of Procedure for the Board
of Supervisors.Remuneration Management of the Board of Directors
According to development strategy the Company has established the Remuneration and Appraisal Committee to formulate the
During the reporting period remuneration policies and programs for directors and senior management personnel and to provide advice to the Board of Directors.
4 The Company’s remuneration policies take into account the factors including corporate business operation goals market remuneration the Company held a total of General Meetings of Shareholders
levels and individual performance ensuring that the remuneration is in line with corporate performance and individual contributions.
1 5 meetings of the Board of Directors and 8 meetings of the Board of The remuneration for senior management adopts a salary structure of "basic annual salary + long-term incentives" to enhance the long-
Supervisors. term sense of responsibility and belonging of the management team promoting the long-term and stable corporate development.
30 31Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Investor Relations
During the reporting period the Company answered over 1 0 0 investor calls and handled over 1 5 0 investor relationship
The Company attaches great importance to investor relations management and has formulated the Investor Relations Management
emails. It responded to investor questions on the Shanghai Stock Exchange e-Interactive platform with a response rate
System establishing an investor relations management mechanism to clarify the basic principles main communication matters 30
communication methods information disclosure channels etc. and has constantly refined the investor relations management of 9 6 . 7 7 % .mechanism to safeguard the basic rights and interests of the investors. In addition the Company also conducts a variety of investor
activities to enhance communication with investors and potential investors improving investors’ understanding and recognition of the
The Company organized 3 online performance briefings participated in 1 online collective reception day in the Xiamen area
Company.held 4 special telephone meetings and conducted online exchanges with over 1 5 0 representatives from 2 0 0 institutions.Information Disclosure
The Company has participated in more than 1 5 strategy meetings organized by major sellers and had face-to-face
The Company discloses major corporate information in accordance with laws regulations departmental rules normative documents exchanges with over 1 5 0 mainstream investment institutions.of the Exchange and Articles of Association. It has formulated the Management System for Information Disclosure Affairs to improve
corporate information disclosure management and quality and all disclosed information is true accurate and complete which effectively The Company has received over 5 0 institutional surveys (in Xiamen in Shanghai or online) with a total of over 2 0 0
safeguards the right to know of all shareholders (especially minority shareholders) and ensures that corporate shareholders can equally
obtain major corporate information. The Company also constantly enhances the management on insiders and orderly organizes the institutions received.registration of insiders effectively preventing insider trading to protect the legal rights and interests of investors.In the regular reports the Company actively discloses major information that can
During the reporting period
fully reflect business progress competitive advantages industry trends industrial
policies etc. to enhance investors' understanding and recognition of corporate the Company disclosed 8 9
investment value; and it strives to express in a simple and understandable manner reports including 4 regular
along with abundant graphics and text to constantly improve the disclosure quality
reports and 8 5 interim
of regular reports.announcements.For many years the Company has persisted in publishing letters to shareholders
in the annual report to facilitate investors' reading and understanding of corporate
operating conditions and development strategies.Since the third quarter report of 2022 English versions of regular reports have been
disclosed and an English website has been set up to establish an English investor
relations column facilitating international investors' understanding of corporate The Company Won the 8th Best Capital Market Communication Award
operating conditions. Protect Shareholders' Interests
Diverse Forms of Information Disclosure The Company has always placed the protection of shareholders' interests in a prominent position and it is committed to
ensuring that shareholders can obtain corporate information promptly and accurately to participate in corporate decision-
making through measures such as enhancing internal control optimizing corporate governance structure and enhancing
Investor Communication transparency. The Company strictly complies with applicable laws and regulations and implements scientific and reasonable
profit distribution policies to safeguard the legal rights and interests of shareholders and their investment returns. Meanwhile
The Company adheres to the fundamental principles of "compliance equality initiative and honesty and trustworthiness" and conducts the Company pays close attention to communication and interaction with shareholders and actively listens to their opinions
investor relations management via multiple channels platforms and methods. Investors can obtain the latest information about the and suggestions in order to achieve the common development of the Company and shareholders and maximize benefits.Company via various channels such as announcement documents official website of the corporate new media platforms Shanghai
Stock Exchange e-Interactive investor hotline fax email and investor education base and the investors can also utilize the network Holding the concept of sharing development achievements with shareholders the Company has implemented an active and stable cash
infrastructure platforms of www.investor.org.cn and stock exchanges securities registration and settlement institutions to obtain dividend policy. In the past five years the proportion of cash dividends to the net profit attributable to shareholders of the listed company
corporate information via General Meeting of Shareholders investor briefings roadshows analyst meetings receiving visitors and (after deducting interest on perpetual bond) in the current year has been remained above 50% and the cumulative dividend amount
discussion exchanges. since the reorganization and listing in 2011 has exceeded CNY 5.1 billion.
32 33Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Related Party Transactions
To regulate related party transaction behaviors of the corporate the Company has formulated the Management System for Related
Party Transactions to clearly stipulate the matters such as the definition decision-making disclosure and punishment of related party
transactions regulating the relevant responsibilities and obligations of corporate directors supervisors senior management personnel
and shareholders. Moreover the Company fulfills the relevant procedures for related party transactions in strict accordance with the
Management System for Related Party Transactions. The related directors and related shareholders are required to avoid voting in the
consideration procedures of Board of Directors and General Meeting of Shareholders and the actual implementation of daily related
party transactions is classified summarized and disclosed in the annual report and semi-annual report. In addition the Company also Basic management cycle Compliance system cycle
stipulates the related party transaction matters in the Management System for Fund Raise to ensure that related party transactions are Risk list Internal control
voluntary equal fair open legal and reasonable which are in line with the interests of the Company and shareholders. *Standard compilation manual *Identification and
*Operation manual assessment of compliance
*Release of compilation risks
Avoidance of Interest Conflicts manual Internal control *Planning to address
*Publicity implementation construction compliance risks and
The Company requires directors supervisors and senior management personnel to fulfill the duty of loyalty in strict accordance with and teaching assistance of cycle implement
compilation manual Goals
the provisions of the Articles of Association. Without the consent of the General Meeting of Shareholders they are not allowed to take *Qualification-related *Implement planning and
advantage of their positions to seek business opportunities of the Company for themselves or others or engage in similar business examinations compliance risk control
Internal
activities. Meanwhile the Company has formulated the Work System for Independent Directors requiring independent directors to *Regular inspection and Internal control *Performance evaluation control effectiveness evaluation
supervise potential major interest conflict matters to ensure that the decisions made by the Board of Directors are in line with the overall rectification and compliance reportassessment
corporate interests and protect the rights and interests of minority shareholders. During the reporting period the Company effectively *Manage non-compliance
and constantly improve
implemented the requirements for avoiding interest conflicts via improving mechanisms maintaining the transparency and fairness of
corporate governance.Risk control Risk control
digitalization Risk control organization empowerment
capacity construction
Risk Control Orientation to Securely Adhere to the Compliance
Bottom Line "One Body Two Wings Three Impetuses" Risk Management System
As a leading enterprise in staple commodity supply chain services in China Xiamen Xiangyu firmly places compliance at the dominant The corporate Risk Management Committee is responsible for organizing comprehensive risk management of the corporate determining
position of risk management and guides its business activities with the concept of "risk first". The Company actively responds the overall goals of risk management identifying major risks and key control measures and establishing a sound risk management
to changes in the economic environment and regulatory policies to constantly refine its risk management system strengthening system.compliance management and enhancing risk control measures and innovates on the basis of compliance to ensure stable development
in a complex and volatile market. These practices not only safeguard the safe operation of corporate assets but also enhance the risk-
resistance capabilities of the industrial chain and supply chain. Each operating entity of the Company maintains a sense of reverence
for compliance management and strictly follows the standards for operation to promote corporate long-term sustainable development Leader in Charge of Risk Risk Management
Control
creating greater value for shareholders and society. CommitteeIntegrate the front and back ends of
risk control via projects
Main responsible
Risk Control Liaison Person Risk Governance Center department for risk
Internal Control of Risk control (functional risk
control partner)
Xiamen Xiangyu conducts various tasks related to optimizing the internal control manual refining basic management and strengthening
compliance management around the "one body two wings three impetuses" framework constantly consolidating the risk management Risk Compliance Legal Affairs Audit Department
Department Department
system.Mainly responsible for
Risk Management System Mainly responsible for the construction of risk inspection evaluation and
Full-time Positions for Part-time Positions control system risk control auditing
Holding the business philosophy of "risk first profit second scale third" and around the overall risk management goal of "being Class A/B Operating for Class C Operating collaboration improvement
controllable" and "bearable" the Company establishes a risk management system with internal control construction as the body basic Entities Entities of risk control organization capacities and construction of
management cycle and compliance management cycle as the two wings and risk control digitalization risk control empowerment and risk control digitalization.risk control organization capability construction as the impetus. That is the "one body two wings three impetuses" risk management
system. Risk Governance Organization Structure
34 35Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Risk Management Process
Risk Types Governance Goals Governance Measures
The Company implements risk list management for major risks. Each operating entity and each functional department of risk
Pre-event: Clearly define the upper limit of authorization line and
management will around the risk list constantly collect risk management information conduct risk assessment formulate risk Conduct
adjustment standards for each operating entity and combine public
management strategies propose & implement risk management solutions and supervise & improve risk management. The Company concentration
opinion performance and production & operation conditions to
mainly assesses risk levels based on two dimensions: probability and impact. The probability assessment standard is mainly determined degree analysis
conduct front-end credit granting and cooperation scale control.based on the occurrence frequency and duration of similar events in the past; and in the assessment standard for impact the impact stress testing
degree of the risk event on financial situation reputation employees and market and others of the corporate is mainly considered. etc. to focus on
promoting the Mid-event: First establish a regular dynamic monitoring mechanism
matching between for merchant credit risk to track the progress on implementation
Key Secondary Risk hierarchical of risk matters to assess the impact of risk matters on the Primary Risk
management performance ability of merchant to promptly take necessary risk
Merchant Credit and authorization prevention measures and urge the implementation of measures.Strategic Risk - Risk mechanism helping Second conduct regular return visit for credit-granted merchants
each operating and perform on-site visits for blacklisted overdue and abnormal
entity control the merchants.Fund liquidity (cash flow) risk
merchant credit
Financial Risk Foreign exchange risk risk within the Post-event: First implement black list and gray list management
Accounting and financial reporting risk
"controllable and to clearly prohibit admission for abnormal cooperative merchants.bearable" range in Second comprehensively conduct post-evaluation on risk business.the actual business Third perform irregular reviews of the entire year's merchant
1 operation. situation to propose optimization opinions for management Merchant credit risk "Four-new" business risk
direction.Goods ownership risk Information system risk
Operational Risk Basic management risk Team building risk
Professional ethics risk Organizational capacity risk Pre-even: Establish a sound management system to clarify the
Investment decision risk Corporate reputation and brand risk admission scoring system for logistics sub-suppliers warehouse
Improve the inspection rules etc. and establish a fightable logistics team.management
ability of logistics Mid-event: First use digital tools to achieve standardized
Price risk sub-suppliers visualized and refined management of logistics suppliers to Market Risk
Policy risk and leverage improve the accuracy of logistics tracking and the intelligent
digital warehouse early warning of risk; second promote the "unfixed time unfixed
Goods Ownership
management to post unfixed person" warehouse inspection mechanism; third Risk
Listing regulation compliance risk achieve effective achieve full insurance coverage to lower the impact degree of Tax compliance risk
Engineering construction compliance risk
Trade control and sanctions risk control of goods
uncontrollable risks.Oversea operation compliance risk
Compliance Risk Health safety and environmental risk ownership. Post-event: First conduct regular return visit for logistics sub-
Dangerous chemicals operation compliance
Customs affair compliance risk suppliers to promptly identify deficiencies and adjust ratings;
risk
Anti-monopoly compliance risk second promote the upward transmission of abnormal information
Commercial substantial risk and conduct evaluations.Note: 1. "Four-new" business risk refers to the risks of new products new models new teams new merchants. Pre-event: According to the relevant management requirements of
Risk List the state and the municipal state-owned assets supervision and
Comply with administration commission draft the General Rules for Supply
Chain Management to clearly define the negative list for business
external regulatory
operations and management requirements.Risk Identification Risk Analysis Risk Evaluation requirements and
strictly prohibit
Commercial Mid-event: Invite accounting firms and external experts to conduct
Check for risks existing in each Clearly define and describe Evaluate the impact degree of risks Substantial Risk conducting non- special training and guide each operating entity to enhance the
corporate business unit various the identified risks and their on achieving corporate goals etc. compliant business. understanding of business substance so as to avoid cognitive risks.important business activities and characteristics and analyze Post-event: The Audit Department organizes special screenings
important business processes. and describe the possibility and focusing on the rationality and compliance of business as well as
conditions of risk occurrence. the rationality of business substance.Risk Identification Process Management Measures for Major Risks
36 37Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Internal Control System Compliance Operations
In order to enhance internal control and risk prevention capabilities to promote sustainable development the Company has formulated The Company has established a systematic compliance management system to enhance the business compliance. It regularly identifies
key systems such as the Internal Control Manual the Internal Control Evaluation Manual the Management Regulations for Internal and assesses existing laws and regulations and clearly defines the responsibilities of each department in the collection identification
Control Evaluation and Internal Control Assessment and the Management Measures for Compliance establishing a comprehensive analysis and response to laws and regulations ensuring that corporate business operations fully comply with national laws and
internal control management system with the goals of compliance asset security accurate reporting operational efficiency and regulations as well as local regulations.strategic implementation. This system is composed of five elements: internal environment construction risk assessment control
activity execution information & communication and internal supervision. It ensures the normalization and effectiveness of corporate
operations providing a solid management and control foundation for stable development of the corporate. Compliance Training
To further enhance the risk control awareness of all corporate employees improve the internal compliance management strengthen the
pre-control of risks and ensure the stable operation of corporate business the Company promoted compliance construction throughout
the year in various forms. It organized over 80 internal and external risk control compliance training sessions and these activities
The Company conducts comprehensive evaluations on the internal control effectiveness of all provided a platform for all employees to learn about compliance knowledge and strengthened the risk defense line safeguarding the
operating entities either via the evaluation by the Audit Department or self-evaluation by the operating development of corporate business.entities aiming to enhance the autonomous management capabilities of the operating entities. The
evaluation scope covers major risk management of each operating entities (27 entities) and the major
Internal Control
Evaluation risks as evaluated include merchant credit risk four-new business risk goods ownership risk business
risk customs affair compliance risk compliance risk price risk etc. Case Conduct the "Risk Control Compliance Month" Activity to Deepen Compliance Awareness
In September 2024 the Company held
the annual "Risk Control Compliance
Month" training. After this one-month
deep training and communication the
According to external regulatory requirements and the key risk points currently faced by corporate
compliance awareness of all employees
operations various special audits are conducted on the compliance the key links and the cost
was significantly enhanced. During this
rationality of key business models. The digital means are utilized to expand the inspection coverage
activity external experts were invited to
via data analysis analyzing the root causes of problems and discussing the paths for management
Special Audit give special lectures. The corporate leaders
improvement.emphasized the importance of compliance
work at the closing ceremony and expected
employees to integrate the knowledge they
learned into their daily work for promoting
benefits via management ensuring the
stable development of corporate business.The Company promotes each operating entity to conduct post-event evaluations on abnormal matters This act iv i ty not only enhanced the
arising from the risk case during operation process requiring each operating entity to conduct such employees' risk prevention capabilities but
evaluations for all abnormal matters that should be evaluated. This further enhances the primary also laid a solid foundation for continuous
responsibility awareness of the operating entities and urges them to promptly summarize experiences "Risk Control Compliance Month" Trainingcompliance operation of the corporate.and lessons improving risk management and response capabilities. The Audit Department selects
Abnormality
Evaluation representative cases to conduct re-evaluation on abnormal matters analyzing the existing problems
from both internal and external perspectives to improve the construction of corporate case database.The Company conducts system check (including major issues important appointments and removals
major projects and the use of large amounts of money financial administrative human resources
engineering rigidity position-related consumption asset leasing equity investment) every year
System Check focusing on key business divisions and weak management links.Specific Measures for Internal Control
Special Training on External Compliance Special Training on Operational Compliance
38 39Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Tax Management
The Company always takes tax compliance as the bottom line and strictly complies with the applicable tax regulations such as the Act with Integrity in Professional Conduct
Corporate Income Tax Law and those of the business location area. It is committed to maintaining the legality transparency and
stability of tax actions to ensure that corporate tax management is coordinated with business development safeguarding the long-term The Company has formulated a series of governance systems for commercial ethics risks to enhance the governance of ethical risks
and stable corporate development and it practices social responsibilities of the corporate via the legal fulfillment of tax obligations. of the corporate. The Company has created a culture of integrity via standardizing employee behaviors establishing a sound reporting
Moreover the Company has formulated the Tax Management System aiming to standardize the tax management process reasonably mechanism and supervising business partners
control tax risks and prevent tax violations. Through this system the Company clearly defines the division of responsibilities and
operational procedures for tax work stipulates the specific steps for tax compliance review and elaborates on tax risk control measures.Anti-commercial Bribery
The Company resolutely opposes any improper behavior damaging commercial ethics of the corporate. It has formulated the Governance
System for Ethical Risk and requires all employees to comply with national laws and regulations enhancing the "Four Consciousnesses"
firmly holding the "Four-sphere Confidence" and fulfilling the "Two Upholds" while requiring all employees to adhere to the principles
of being realistic and pragmatic. The corporate employees shall comply with the internal policies and procedures on anti-commercial
Taking the Tax Capacity Building In addition to annual self-inspection The Company has c rea ted a bribery. In necessary cases they shall implement office-holding avoidance and official business avoidance and must not engage in
Te a m a s t h e e m p o w e r m e n t of tax by the companies at all case database for tax assistant profit-making business activities or paid intermediary activities. When conducting commercial receptions the employees shall follow
carrier and relying on the active levels the Company organized investigation to conduct deep corporate reception management travel management and official business vehicle management regulations and their position-related
participation of tax partners at multiple special self-inspections or analysis on tax risk issues and consumption shall comply with applicable regulations meeting the principle of frugality. The Company strictly prohibits employees from
all corporate levels the Company inspections of tax for tax-related the self-inspection was used to engaging in illegal lending and the employees shall neither embezzle corporate property nor accept gifts cash etc. from subordinates
closely tracks the changes in tax scenarios such as withholding and extract optimization measures for with subordinate relationships during weddings funerals and celebrations.laws deeply analyzing the impact remittance for non-trade payments tax management to achieve tax-
of tax law changes on the tax- tax declaration tax accounting enterprise collaboration.related business of the corporate standardization and additional
and proactively empowers business reduction of VAT. It comprehensively Risk Assessment
depar tments to enhance the identified risk points to formulate
Comprehensive identification of risk points: The Company conducts a comprehensive investigation on potential integrity risk
control of tax risks from the source. a rectification list and urged the
points in key areas such as the supply chain and identifies 171 risk points in total including high-risk medium-risk and low-risk
implementation item by item.points providing a basis for precise prevention and control.Management Measures for Tax Risk
Practical Efforts
In addition the Company also identifies and manages potential tax risks in its business Educational guidance: Through forms such as "Honest and Upright Yu Chain Mini-Classroom" the Company provides employees
operations. It controls key risk points and takes effective measures to ensure legal tax During the reporting period with professional ethics education and integrity publicity & implementation improving their awareness of discipline and law.payment and effectively prevent & manage tax risks. The Company has established a
the Company paid taxes in the Discipline enhancement: Conduct regular discipline education for new employees new middle-level managers and new senior
regular communication mechanism with the tax authorities in the business location executives including integrity knowledge examinations and collective integrity talk to enhance the awareness of acting with integrity
area to consult and communicate with the tax authorities on tax policies regulations mount of C N Y 3 . 2 0 5 billion in professional conduct.and practical operations ensuring tax compliance. Moreover through compliant in total. Warning education: Organize the employees to participate in warning education activities such as visiting prisons and attending
tax management the Company actively builds harmonious relationships with the court trials and illustrate discipline and law via cases to enhance employees’ sense of awe.tax authorities investors partners and all sectors of society jointly promoting the Supervision and inspection: Strengthen supervision and inspection of subordinate enterprises and key positions and promptly
optimization and improvement of the tax environment. correct improper behaviors to improve the quality of supervision.Disciplinary accountability: Conduct strict investigations and handling of disciplinary violations and irregularities to confiscate the
proceeds of violations and strengthen warning education via forms such as warning education conferences.Problem rectification: For discovered problem clues conduct efficient and coordinated clue disposal to ensure the implementation
of problem rectification.Honest Business Operation to Adhere to Commercial Ethics Information security and intellectual property protection: Pay attention to information security and intellectual property application and prevent the disclosure of commercial secrets.Party building work: Practice Party building work to promote the alignment between corporate development and Party’s policies
Xiamen Xiangyu always adheres to the highest standards of commercial ethics and strictly complies with laws and regulations such and guidelines and ensure the correctness of corporate development direction.as the Anti-Monopoly Law of the People’s Republic of China and the Anti-Unfair Competition Law of the People’s Republic of China Digital integrity archives system: The Company has established a digital integrity archives system which incorporates key data
to establish a sound commercial ethics management system. The Company resolutely opposes corruption commercial bribery such as employees' rewards and punishments job responsibilities and integrity risk points achieving big data supervision.monopolistic behavior and unfair competition and takes practical measures to prevent the occurrence of any violations of commercial Special supervision to control risks: Through the "embedded" supervision mechanism the Company conducts special governance
ethics ensuring the integrity and compliance of corporate operations. of key business links such as logistics receivables and overseas commissions to prevent integrity risks.
40 41Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Reporting Mechanism
To enhance the effectiveness of the supervision mechanism the Company has formulated the Provisional Measures for Complaint Case Consolidate the Integrity Defense Line to Conduct a Collective Integrity Talk for Senior Executives
Reporting Acceptance and Problem Clue Disposal. It clearly classifies the complaint types such as reporting accusations criticism &
suggestions and appeals and ensures that the discipline inspection and supervision institutions at all levels can handle each reporting In order to further improve the integrity & self-
carefully and in a standardized manner resolutely maintaining the transparency and fairness of supervision and effectively protecting discipline awareness and the anti-corruption
the privacy and rights/interests of the whistleblowers. The whistleblowers can report behaviors that violate commercial ethics via phone capabi l i t ies of newly appointed senior
calls emails letters and the Internet. executives in March 2024 the Company held
a collective integrity talk. Through various
links such as warning education integrity
1 2 3 4 5 talks and statements made by senior
Submittal executives this event effectively improved the
Acceptance for Handling Disposal Feedback integrity & self-discipline awareness of the
Approval executives clarified the integrity requirements
strengthened their sense of responsibility
a n d c r e a t e d a n h o n e s t a n d u p r i g h t
corporate culture atmosphere providing a
Acceptance Process of Complaint Reporting
solid disciplinary safeguard for the healthy
Integrity Talk for Senior Executives
corporate development.Confidentiality The names employers addresses and other information of the whistleblowers and accusers as well
Requirements as the content of the accusations must be strictly kept confidential.Information It is not allowed to transfer or disclose the accusation materials to or inform the organizations or Anti-monopoly and Anti-unfair Competition
Protection individuals being accused.The Company strictly complies with the requirements of laws and regulations related to anti-monopoly and anti-unfair competition and
Avoidance When the personnel of the handling department have conflicts of interest or other circumstances that it resolutely opposes behaviors such as monopoly and unfair competition that disrupt market order. Moreover the Company adheres
System may affect the fair handling of the case they shall voluntarily propose to avoid. to honest business operation and actively maintains a free fair and honest market competition order. In addition the procurement
activities of the Company and its subordinate companies all follow the principle of "openness transparency and merit-based selection
principle" to treat all small and medium-sized suppliers equally.In cases where the verification determines that the accusation is inconsistent with the facts or
Clarification where the case has been wrongly handled or punished after following the prescribed procedures on
Mechanism submitting for approval it shall be corrected within their authority and appropriate measures shall be
taken to clarify the situation. Case Anti-monopoly Law Training
For any violations such as disclosing the information of the whistleblowers or accusers inquiring about
Legal In order to improve the understanding and
the case details or involving in the case they will be dealt with in strict accordance with regulations
Liability application ability of corporate employees
and discipline. If it involves illegal or criminal acts of duty legal liability will be pursued. regarding the Anti-monopoly Law in March
2024 the Company invited lawyers from
Whistleblower Protection Mechanism a law firm to conduct a special training
on the content of the Anti-monopoly Law.Through the interpretation of the latest
policies and the reminder of relevant
operational notes the employees' ability
to solve practical problems was improved
During the reporting period 1 2 integrity talks were conducted for cadres before their and their awareness of risk prevention was
appointments and 2 0 integrity symposiums for young employees were held. In addition enhanced.
8 0 8 electronic integrity files were collected and refined.
Anti-monopoly Law Training.
42 43Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
02 Green Empowerment to Jointly Build Ecological Civilization
Concept
Xiamen Xiangyu conducts a series of innovative practices and systematic management to
integrate the green concept into every link of its production and operation. The Company
strictly complies with environmental protection laws and regulations to establish a sound
environmental management system; it advocates lean production green logistics green
agriculture and green shipping to significantly improve energy efficiency; it conducts high-
standard management of wastewater waste gas and waste to ensure that pollutants
are discharged in accordance with standards; and it deepens resource conservation and
promotes efficient recycling of resources via rainwater collection wastewater reuse and
material optimization.Our Actions
Environmental Compliance to Consolidate Responsibility Management
Energy Conservation and Carbon Reduction to Respond to Climate Change
Pollution Prevention and Control to Promote Ecological Protection
Resource Conservation to Develop Recycling Economy
44 45Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Environmental Compliance to Consolidate Responsibility Management
Xiangyu Superchain
Xiamen Xiangyu strictly complies with applicable laws and regulations such as the Environmental Protection Law as well as local Establish an industry headquarters organize the establishment of the industry headquarters and supervise Xiangyu Agricultural
environmental protection requirements and adheres to the concepts of clean and safe development to actively achieve the strategic Products and guide the HSE systems of each subsidiary. The headquarters and each subsidiary all have occupational
goal of sustainable development. Moreover the Company holds the HSE1 management philosophy and the subsidiaries that establish health safety and environmental protection management institutions (departments).Xiangdao Logistics
the HSE system under the supervision and guidance of the Company include industry companies (Xiangyu Superchain Xiangyu
Agricultural Products Xiangdao Logistics) single companies (Xiangming Oils Xiangyu Zhengfeng Liangshan Xiangyu) and commodity
Xiangming Oils
operation companies (more than 50).Independent single companies establishing occupational health safety and environmental protection
Note: 1. HSE refers to health safety and environment. Xiangyu Zhengfeng
management institutions (departments) organizing the establishment of the HSE system for their companies.Liangshan Xiangyu
Over 50 independent staple commodity trading companies operated by relevant functional departments
Commodity Operation
Health safety and Companies guided by the parent company to establish occupational health safety and environmental protection system
environment are the and their implementation is supervised.foundation for the survival
and development of the HSE System of Subsidiaries
Health safety and company. Managing environmental
environment are the
affairs is not only an
comprehensive reflection
economic responsibility The subordinate companies of Xiamen Xiangyu have been actively engaged in environmental protection work. They conduct risk
of the overall corporate
but also a social one. assessments for environmental incidents improve emergency response plans and perform emergency drills and regularly conduct
quality. environmental protection training to prevent related risks via their practical actions. During the reporting period subsidiaries such as
Xiangming Oils Yi’an Agricultural Products and Zhuoyu Supply Chain revised the relevant documents of the Emergency Response Plan
for Sudden Environmental Incidents.Not only comply with regulations Conduct annual environmental factor monitoring environmental impact assessment of new project
and standards but also strive to The set goals can pollutant discharge permit application & review and annual operation and maintenance of environmental
be the best and constantly raise only be achieved via Xiangyu protection equipment in accordance with the law.the environmental management "implementation". SOE Regularly promote environmental work inspections conduct special inspections on each department’s
level. Corporate HSE implementation every week and promptly improve management issues; environmental protection facility
Management management personnel conduct daily spot check to promptly rectify environmental protection equipment
Philosophy problems.The systematic
Use clean and harmless
management and constant
materials and energy to
improvement because we Optimize the environmental protection management system and refine the division of responsibilities of
protect the environment
firmly believe that "there is each department.and resources. Zhuoyu
Manage stakeholders and no best only better". Supply Optimize the environmental protection operation management system and propose 8 management
share information and Chain regulations for environmental protection operations to ensure the effective implementation of measures.experience to achieve a Conduct 3 environmental protection activities including 2 special trainings on logistics environment
win-win situation. protection operations.Corporate HSE Management Philosophy Clearly define environmental protection requirements during cargo loading/unloading and storage
processes conduct 2 environmental protection inspections every week focus on checking dust control
Each subsidiary has established a sound environmental management system based on its own business situation. For instance Xiangyu and wastewater collection and promptly rectify problems found.Xiangming Oils and Xiangyu SOE have both set up an environmental management structure with the General Manager as the primary Superchain Organize 1 environmental protection knowledge competition to enhance employees’ environmental
responsible person and have respectively established specialized departments for environmental management responsible for protection awareness and business capabilities.implementing environmental policies and regulations formulating environmental systems and plans supervising the implementation of
environmental work and organizing environmental training. During the reporting period six subsidiaries (including Suihua Xiangyu) of
the Company obtained ISO 14001 environmental management system certification.
46 47Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Strictly implement dust prevention measures during cereal purchase & storage processes conduct daily
inspections and maintenance of ventilation and dust removal equipment to ensure normal operation and Emergency Drill for "Oil Leakage" Accident
Xiangyu Casereduce dust emissions; conduct 1 environmental facility operation assessment every month to optimize
Agricultural and adjust as needed.Products In March 2024 Zhuoyu Supply Chain conducted
Conduct 2 environmental protection technology trainings on cereal storage to improve employees’
a special training for the scenario of "leakage of
environmental protection operation skills.used engine oil due to improper handling". The
training covered the hazards and prevention
of oil leakage accidents enabling employees
to understand the hazards and master the
Strengthen the spillage control during cargo loading/unloading and transportation and equip with water prevention methods; it detailed the emergency
spraying vehicles to spray water on the cargo yard roads 3 times a day to reduce dust; regularly clean handling procedures including the l inks
Xiangdao drainage ditches to prevent pollution caused by rainwater erosion. from detecting the leakage and reporting
Logistics to emergency response and environmental
Organize at least 1 environmental emergency drill every year and simulate emergency responses after
monitoring; and it taught employees how to
cargo spillage to improve employees’ emergency response capabilities.correctly use emergency equipment such
as leakage control equipment and personal
protective equipment. Through case analysis
Zhuoyu Supply Chain helped employees
understand the handling process of oil leakage
Conduct real-time monitoring of wastewater and waste gas emissions during the production process to accidents and strengthen their understanding of
ensure compliance with discharge standards; inspect the operation status of environmental protection the emergency procedures improving the ability
Xiangming treatment facilities daily and promptly handle abnormal situations; conduct 1 environmental performance of workshops to deal with oil leakage risks. Simulation on Recovery of Leaking Waste Oil
Oils assessment every month to constantly improve environmental protection work.Conduct 2 environmental protection-themed activities such as energy conservation and emission
reduction publicity week and environmental equipment operation skills competition so as to enhance
employees’ environmental protection awareness and participation.Case Emergency Drill for Hazardous Chemical Leakage
Conduct daily tour inspections on the storage environment promptly remove debris and accumulated
water to keep the site clean; conduct monthly summaries and analyses of environmental protection work In April 2024 an emergency drill was conducted
Xiangyu identify problems and formulate improvement measures. in the P4 paint room of Xiangyu SOE Painting
Zhengfeng Facility area. This drill covered emergency Organize at least 1 environmental protection training lecture every year and invite experts to explain response for hazardous chemical leakage
environmental protection knowledge and cases to raise employees’ environmental protection personnel evacuation fire-fighting and other
management levels. subjects. A leadership group was established for
this drill and multiple subordinate groups such
as fire-fighting rescue and evacuation were also
set up to define clear responsibilities for each of
Organize employees to learn and conduct drills to enhance their ability to respond to sudden them. The drill simulated a fire incident caused
environmental incidents; strengthen energy management in the production process promote energy- by a leakage of thin liquid in the P4 paint room
Liangshan saving and emission reduction measures to reduce energy consumption and pollutant emissions; conduct and it set up two levels of warnings. It stipulated
Xiangyu self-inspections and self-corrections of environmental protection work every week and constantly improve the reporting and response procedures after
environmental protection performance. detecting the fire and clearly defined the time
record requirements for each step emphasizing
Conduct 1 environmental protection technology exchange activity every half year to share environmental that fire water was prohibited during the drill.protection experience and technology with peer enterprises jointly raising environmental protection levels. Through this drill Xiangyu SOE improved the
safety awareness and emergency response Personnel Evacuation
capabilities of its employees.
48 49Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Green Operation Management Lean Production
Xiamen Xiangyu has been deeply committed to the concept of green and low-carbon development constantly improving the green and Each subsidiary of the Company based on its actual business conditions has established a lean management system to constantly
low-carbon awareness of its employees and has fully integrated the requirements of sustainable development into its daily operations update and replace equipment achieving energy conservation and consumption reduction.and management. The energy consumption per unit area of corporate headquarters building is 8.89kgce/m2 only which is 58.5% lower
than the standard value (≤21.4kgce/m2) stipulated in the Energy Management System - Certification Requirements for Public Building Establish an energy control team for eliminating the evaporating emitting dripping or leaking of liquid or
Management Organization and the corporate energy efficiency management level is at the leading position in the industry. gas and assist each workshop to prevent energy waste.Xiangyu Utilize peak production to start/stop air compressors and energy-saving technological renovations for
SOE effectively reducing energy consumption.Adopt the energy trusteeship mode of air compressor invested by others where the cooperative entity
Deploy smart building automation control systems to realize smart control on public area renovates the air compressor station and the Company purchases compressed air and charges for the
illumination landscape lighting electronic display screens water feature facilities and air operation electricity achieving cost reduction and efficiency improvement.conditioning systems achieving energy conservation.During the reporting period the proportion of energy to labor costs decreased by 0.48% compared to the
budget at the beginning of year.Completely install water-saving toilets faucets and other water-using appliances and
equip a rainwater recovery system to reduce water resource waste. Zhuoyu Establish a team dedicated to excellence and utilize technological renovations to optimize production
Supply processes. The low-efficiency fixed-frequency motor in vacuum pumps is replaced with a variable
Chain frequency motor to reduce electricity consumption.Actively promote energy-saving and environmental protection office modes advocating
green behaviors such as "power off when leaving" paperless office and garbage sorting.Optimize the cargo loading/unloading process and introduce energy-saving forklifts and cranes to
Xiangyu increase loading/unloading efficiency and reduce energy consumption.Superchain Install smart lighting systems to automatically adjust the brightness of lights according to the usage of the
Provide free shuttle buses for employees encouraging them to take public transportation cargo yard reducing electricity waste.and organize "Stop Driving for One Day" activities for employees who own private cars
every year to reduce carbon emissions caused by commuting.Install insulation and heat preservation materials in the cereal storage area to reduce energy loss due to
Xiangyu temperature variations.Organize employees to participate in voluntary tree planting and environmental cleaning Agricultural
activities every year to enhance their environmental protection awareness. Products Promote the usage of low-power and high-efficiency ventilation equipment to reduce electricity
consumption during the ventilation process.Green Operation Management
Upgrade the lighting system of the railway freight yard replacing traditional lamps with LED lamps.Xiangdao
Energy Conservation and Carbon Reduction to Respond to Climate Change Logistics Optimize the energy structure replacing diesel traction vehicles with natural gas traction vehicles to reduce carbon emissions.Xiamen Xiangyu has constantly improved its energy management and lean production green logistics green agriculture and green
shipping are implemented to enhance energy utilization efficiency and reduce energy consumption. During the reporting period two of
its subsidiaries (including Zhuoyu Supply Chain) obtained ISO 50001 energy management system certification Xiangming Oils obtained
The lean management is adopted to conduct projects such as the renovation of pre-treatment
the Clean Production Certification and Xiangyu SOE was rated as an "Environmental Credit Green Enterprise" in Nantong City. Xiangming conditioning towers and the utilization of waste heat. During the reporting period the steam consumption
Oils per ton of soybeans decreased by 13.5 kg.
50 51Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Conduct energy-saving renovations to lighting ventilation and other equipment in the storage area. Case Pre-treatment Conditioning Tower Renovation Project
Xiangyu
Zhengfeng Enhance the training on employees’ awareness of energy conservation encouraging them to actively
participate in energy-saving and emission reduction activities and propose reasonable suggestions. In 2024 due to problems such as waste of residual heat from the pre-treatment conditioning tower impact on condensation
negative pressure and excessive steam consumption Xiangming Oils conducted a comprehensive renovation. On one hand
Xiangming Oils transformed the steam layer of the conditioning tower into a hot water layer reducing the original outlet water
temperature from 57℃ to 45℃ . Xiangming Oils also moved the unused P219H descaling hot air heater to the hot air heating
area of the conditioning tower at first floor utilizing the leaching and pre-treatment condensate water to raise the hot water
Promote the usage of energy-saving production equipment such as high-efficiency motors and energy- temperature to over 80℃ . On the other hand Xiangming Oils used the condensate water instead of steam to heat the hot
saving heating furnaces. air. The renovation achieved remarkable results with the hot air temperature stabilized at 77.6℃ effectively helping the Liangshan conditioning tower reduce the moisture content of soybeans. After the renovation the pre-treatment conditioning tower could
Xiangyu Optimize the production processes to reduce energy waste and improve energy utilization efficiency. save approximately 0.4 tons of steam per hour with a savings of 5 kilograms of steam per ton of soybeans and it could save
4000 tons of steam annually effectively improving energy utilization efficiency.
Green Logistics
Indicators Unit 2024 Railway transportation has significant advantages in terms of energy consumption and pollutant emissions. In the construction of
the multimodal transport logistics system Xiamen Xiangyu fully utilized its own resources of dedicated lines of railway and took the
Raw coal Tons 17583.29 "greening" as the core development concept. It actively leveraged the unique advantages of open-top container transportation to
expand "road-to-railway" transportation businesses for coal cement clinker kaolin and other categories which further consolidated
Fuel oil Tons 109.17 the green transformation achievements in the logistics process significantly reducing the comprehensive energy consumption and
pollutant emissions in the logistics process. The "road-to-railway" routes of Xiamen Xiangyu had an annual transportation volume of 24
Diesel L 10065848.41
million tons1 reducing 800000 vehicle trips2 which could reduce carbon emissions by 4.4 million tons3 annually contributing to the
Gasoline L 400952.77 development of green logistics.Notes:
Natural gas m3 2451417.17 1. The annual transportation volume of the "road-to-railway" route is 24 million tons which is approximately transportation volume of corporate railway station/yard in 2024.
2. The reduced truck transportation is calculated at an average load of 30 tons per vehicle so that is 24 million tons/30 tons per vehicle = 800000 vehicle trips.
Steam Tons 162058.54 3. The calculation for reducing carbon emissions by 4.4 million tons per year is as follows: (1) Calculation logic: Freight volume × Transportation mileage × (Carbon emission
coefficient of road transportation - Carbon emission coefficient of railway transportation). (2) Key coefficients: The estimated average transportation mileage is 2500 kilometers the
carbon emission volume of road transportation is 8.16 kilograms per hundred tons per kilometer and the carbon emission volume of railway transportation is 0.8342 kilograms per
Electricity kWh 70518910.06 hundred tons per kilometer. On average a tree absorbs about 18 kilograms of carbon dioxide per year. (3) Thus the calculation of 2.4 million tons of freight volume is: 240000 × 2500
× (0.00816 - 0.0008342) which is approximately equal to 4.4 million tons of carbon dioxide emission reduction.
Green Agriculture
Case External Air Conditioning Project for Reach Stacker Xiangyu Agricultural Products has integrated the concept of green development throughout its operations and has focused on four key
aspects to contribute to the green development of agriculture.In September 2024 Chengdu Xiangdao successfully completed a two-year external air conditioning project for reach stacker.Utilize order planting to guide varieties and green Comprehensively promote energy conservation and
During the summer the local temperature is extremely high and it is humid so reach stacker drivers need to slow down and turn
planting emission reduction in warehousing businesses
on the air conditioning to prevent heatstroke resulting in a significant increase in fuel consumption. In this project the external
air conditioner was added to the reach stacker and their own batteries were to supply power for cooling thereby improving the
working environment and reducing fuel consumption. After the renovation the average fuel consumption of the reach stacker Actively build high-standard green agricultural Moderately develop and invest in green agricultural
was reduced by 0.85 liters of diesel per hour and a total of 1177.25 liters of diesel was saved during the reporting period. This demonstration bases projects
project effectively improved the working environment of the reach stacker during the summer allowing drivers to work more
comfortably while waiting for container loading and unloading operations and it also significantly reduced the fuel consumption
of equipment. Green Agriculture Development Strategy of Xiangyu Agricultural Products
Green Shipping
Xiangyu SOE has adopted measures such as optimizing the hull shape and installing front guiding pipes rotor sails and alternative
fuels and has focused on customer operation and maintenance as well as long-term benefits. Through a series of design concepts
and solutions it constantly improves performance indicators such as fuel consumption harmful gas emissions and energy efficiency
management of ships enhancing the operational efficiency and environmental protection effectiveness of the entire industry.
52 53Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Pollution Prevention and Control to Promote Ecological Protection
Case Leaching Wastewater Reutilization Renovation Project
Xiamen Xiangyu attaches great importance to the protection of the surrounding environment of its operation sites ensuring that
the discharge and disposal of all pollutants and waste materials strictly comply with the local emission standards. Moreover the In 2024 in order to address the problems in the leaching workshop such as waste of heat from steam condensate unstable
selection of all production projects and the construction of factory sites are conducted in accordance with the Regulations on the water volume and the need for steam consumption by DC hot air Xiangming Oils conducted a leaching wastewater reutilization
Administration of Construction Project Environment Protection to implement the environmental protection assessment system and the project. This project ensured the discharge overflow and sewage via self-made water tanks and purchased hot water pumps."three simultaneous" principle for pollution control meeting the requirements of national and local ecological protection. It also avoids Moreover the old pipelines were used to connect to the DC original steam heater and the 8th water addition layer and later
ecological protection areas and never violates the ecological protection red line or the environmental quality bottom line. a self-controlled water tank level was added. After the renovation the wastewater was heated by the heater to increase the
temperature of DC hot air and approximately 0.2 kilograms of steam per ton of soybean meal was saved which not only
reduced the amount of wastewater discharge but also lowered the water temperature from 65℃ to 51℃ effectively alleviating
the wastewater treatment burden.Wastewater Management Waste Gas Management
The Company strictly follows the applicable laws and regulations such as the Law on Prevention and Control of Water Pollution and The Company strictly complies with applicable laws and regulations such as the Law on Prevention and Control of Air Pollution and
each base/branch or subsidiary has established a management system accordingly to conduct regular maintenance of wastewater each subsidiary has established management systems accordingly to monitor the concentration of waste gas and constantly upgrade
treatment facilities ensuring that wastewater is discharged in accordance with standards. Meanwhile the Company actively renovates waste gas treatment technologies in strict accordance with national and local standards ensuring that the waste gas is discharged in
technologies to reduce wastewater discharge among which Zhuoyu Supply Chain and Xiamen Singamas do not discharge production compliance with standards.wastewater and use such wastewater for recycling in the production system.During the production process the emission indicators of particulate matter and paint mist are
implemented in accordance with the Integrated Emission Standards of Air Pollutants. The VOCs emission
Xiangyu standards shall be implemented by referring to the limits for the surface coating industry specified in
Formulate the Management System for Water Pollutant Discharge to clearly define the management SOE Jiangsu Province’s Emission Control of Volatile Organic Compounds from Industrial Enterprises and the
Xiangming responsibilities of each department for wastewater ensuring that the wastewater is treated to meet odor concentration is implemented in accordance with the Emission Standards for Odor Pollutants.Oil standards before being discharged. Meanwhile standardize the management of the rainwater and
sewage systems to prevent water pollution and strictly manage rainwater discharge valves and initial The segmented workshop and pipeline fitting workshop are equipped with mobile welding smoke purifiers
rainwater collection pools. which are distributed to the welding operation points in the workshop to ensure that the welding smoke in
the workshop is effectively collected.The waste gas from the coating workshop is filtered and discharged after multi-stage paint mist filters
+ zeolite rotors + CO catalytic combustion/RTO combustion devices with high treatment efficiency
effectively reducing the VOCs waste gas emissions.Implement the Integrated Sewage Discharge Standard at the third level to enhance the governance and
Xiangyu Particulate matter and emission standards are implemented in accordance with the Integrated Emission monitoring of domestic sewage and develop water recycling technologies to reduce emissions properly
SOE Standards of Regional Air Pollutants and odor concentration is implemented in accordance with the managing the sewage treatment facilities and maintaining daily operation records.Xiangming Emission Standards for Odor Pollutants. The treatment process includes cyclone dust removal + heat
Oil exchange + water spray + alkali spray and pulse dust collector for dust removal etc.;
In 2024 the pollution control facilities in sewage station were renovated and the odor treatment process
for the waste gas generated in the aeration tank dosing room and sludge temporary storage room was
changed from the original low-temperature jet ionization + microwave photocatalysis to the alkali washing
+ water washing.Indicators Unit 2024
Total wastewater discharge volume m3 96040.00
Indicators Unit 2024
Chemical oxygen demand (COD) mg/L 123
Total waste gas emissions m3 1139963239.28
Five-day biochemical oxygen demand (BOD5) mg/L 38.425
Particulate matter mg/m3 4.25
Ammonia nitrogen mg/L 17.85
Nitrogen oxides mg/m3 1.26
Total phosphorus mg/L 0.548 Sulfur oxides mg/m3 3.85
Suspended solids mg/L 21 VOCs emissions mg/m3 14.66
54 55Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Xiangyu SOE used environmentally friendly materials in the initial design stage to reduce VOCs emissions at the source: In strict accordance with the applicable requirements of the Standard for Pollution Control on Hazardous
Waste Storage and the Standards for Pollution Control on the Storage and Disposal Site for General
Xiangyu Industrial Solid Wastes sign hazardous waste transfer and disposal contracts with qualified hazardous
Long-lasting environmentally friendly fuel- Increase the application proportion of envi- SOE waste disposal entities and conduct annual management plan declaration and daily management of
saving anti-fouling coatings application ronmentally friendly paints hazardous waste in the Jiangsu Provincial Hazardous Waste Dynamic Management System in accordance
with the requirements of the Jiangsu Provincial Solid Waste Management Center.The long-lasting environmentally friendly fuel-saving anti- High/Ultra-high solid content coatings can reduce the Hazardous wastes such as paint cleaning waste waste hydraulic oil paint residue waste filter elements
fouling coatings can reduce fuel consumption and waste paint consumption and decrease VOCs emissions and waste activated carbon waste paint buckets and grease waste from grease traps are all entrusted to
gas emissions. The advanced acrylic silane and methacrylic the number of waste paint buckets. Taking the ballast qualified entities for disposal. The storage site is equipped with measures to prevent seepage and leakage
silane anti-fouling coating technologies on the market can tanks of a 63500 DWT bulk carrier as an example using in accordance with the requirements of the Standard for Pollution Control on Hazardous Waste Storage
reduce waste gas emissions by more than 10%. 73% solid content primer and 80% solid content primer and different methods are adopted for storage according to the properties of solid waste. Hazardous solid
compared to conventional solid content coatings VOCs waste with high moisture content has a dedicated storage container.emissions are reduced by 33.6% and 48.4% respectively
while the paint consumption is significantly reduced and General solid waste is packaged in buckets tanks or high-strength special packaging bags for storage.the generation of hazardous waste paint bucket is also
decreased.The Company has implemented integrated paint of
bottom and surface in the engine room of an 82000 Identify hazardous wastes as waste mineral oil waste paint buckets waste oil buckets laboratory
DWT bulk carrier. Compared with the alkyd paint system waste liquid waste reagent bottles waste lamps and waste lead batteries and formulate a special
it can reduce the paint consumption VOCs emissions Xiangdao management system for hazardous waste. This system is revised once a year and training is conducted
and the number of waste paint buckets and also has an Oils once a year. In addition an assessment system is provided for strict management of hazardous waste.advantage in total cost. According to the Standard for Pollution Control on Hazardous Waste Storage a hazardous waste
temporary storage room is constructed equipped with explosion-proof lamps gas collection and
purification devices diversion channels fire-fighting emergency equipment and labor protection supplies.
01 02 According to the Technical Guideline for Deriving Hazardous Waste Management Plans and Records the hazardous waste is identified to enter into the records ensuring that each item is recorded each item is
labeled and the physical items are correspondingly matched with the records.According to the requirements of applicable laws and regulations such as the Technical Specification for
Setting Identification Signs of Hazardous Waste the identification signs for hazardous waste storage are
updated in a timely manner and the register transfer and disposal of hazardous waste are implemented.Upgrade and Renovate the Waste Gas Treatment Facilities in the Coating Workshop to Improve Air
Case Quality in the Workshop Mainly engage in grinding and screening of iron ore to produce iron concentrate powder. The hazardous
wastes mainly include waste grease/waste engine oil from equipment maintenance waste packaging
Zhuoyu
In 2024 considering the harmful impact on the atmospheric environment and personnel health from the coating workshop’s materials and a small amount of residual liquid generated during laboratory analysis all of which are Supply transferred and disposed of by qualified entities in compliance with regulations;
waste gas containing harmful substances such as paint particles and solvent vapors Xiangyu SOE completed the installation Chain
commissioning and acceptance of the organic waste gas treatment renovation equipment within 210 days. After the renovation Optimize the maintenance frequency and fueling volume of equipment and facilities and introduce QR
the VOCs removal rate of the waste gas treatment system reached over 98% and the emission concentration of waste gas from code information management. Conduct relevant training to enhance the full-process management of the
the coating workshop was stable far below the national emission standards; meanwhile with the help of the RTO device for equipment and standardize the use of grease and engine oil;
heat energy recovery the energy utilization efficiency was improved.Refine the hazardous chemicals management system including management systems stock-in/stock-out
records personnel configuration and training etc.Waste Management
The Company strictly complies with applicable laws and regulations such as the Law on Prevention and Control of Environmental
Pollution by Solid Wastes and each subsidiary has established strict waste management systems and hazardous chemicals
management systems emphasizing the compliant disposal of hazardous waste to reduce its pollution to the environment. Moreover
the hazardous waste and general solid waste are classified disposed and recycled by qualified third-party entities achieving solid Indicators Unit 2024
waste reduction resource utilization and harmless treatment. For example the waste engine oil at Xinjiang Xiangdao was treated by
incineration and the tailings of Zhuoyu Supply Chain and Xiamen Singamas were sold to cement plants for recycling and utilization. Total waste generation volume Tons 5008.98
56 57Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Resource Conservation to Develop Recycling Economy Material Conservation
Xiangyu Agricultural Products has implemented various measures in all logistics and transportation links to save cereals and reduce
The Company constantly deepens resource conservation and is committed to achieving efficient recycling of resources. In terms of water losses effectively reducing cereal losses and improving transportation efficiency and quality. During the reporting period the total
conservation the Company has adopted innovative measures such as rainwater collection and wastewater reuse significantly reducing amount of agricultural supplies and cereal/oil boxes used for production transportation and packaging by Xiangyu Agricultural Products
water consumption; various measures have been implemented to save cereals reduce losses and conduct lean shipbuilding achieving was 604.36 tons all of which were made of renewable materials.resource conservation.*24-hour empty container inspection by container inspectors to ensure
Bulk cereal container the integrity of the empty containers before loading
Water Resources operation link *Self-made cereal-blocking boards to prevent spillage and stealing
*Purchase moisture-proof fabric to reduce cereal moisture
Subsidiaries under Xiamen Xiangyu have constantly conducted water resource conservation projects to effectively improve water
resource utilization rate. Subsidiaries such as Sanmenxia Xiangdao have constructed rainwater collection tanks to recycle and reuse
rainwater for cleaning containers reducing water waste; Zhuoyu Supply Chain has formed a team dedicated to excellence which further *Belt is mounted on the loader to reduce cereal abrasion and damage
cleaned the bottom sludge of rainwater collection tanks to increase collection volume and also installed more filtration equipment *Use compressor pumps to clean the containers for reducing residual materials
improving the utilization rate of rainwater reuse for production. Bulk cereal port loading/ in the containers and make special hanging boxes to reduce tipping during ship
unloading operation link loading
*Manual inspection is carried out and the stored cereals with many impurities are
Indicators Unit 2024 re-sieved to remove impurities
Total water consumption m3 211793.03
*Put container flipping equipment to achieve direct loading in the warehouse
Recycled/Reused water m3 27876.00 Cereal road and railway *Refine the return cereal road transportation platform
transportation link *Promote the railway container sales mode transformation to increase
direct transportation ratio
Case Use Circulating Condensate Water from the Chiller to Replace Tap Water *Expand 20-foot container railway handling stations for cereals from Liaoning and Accelerate the implementation Jilin
of the "zero loss" mode for
railway-water-railway one-ticket *Launch port nodes that can be transported by railway in the sales area In 2024 Xiangming Oils made improvements to address the problem of tap water condensation in the oil content detection
transportation and increase 20-foot railway container stations for inland distribution in the experiment by extraction method. It adopted a chiller to condensate in a closed-loop circulation manner and set a constant southwestern region
condensation water temperature which saved water resources while ensuring stable experimental results. After the renovation
the chiller saved approximately 210 liters of water per hour and could save 1500 m3 of water per day.Measures for Saving Cereals and Reducing Losses by Xiangyu Agricultural Products
Xiangyu SOE starts its lean shipbuilding from the source optimizing resource utilization at the design level.Material Quantity Optimization
Compare with the material quantity of advanced domestic shipyards conduct light-weighting and standardization equivalent
optimization and according to the actual production conditions op-timize the design from three dimensions: direct material
usage main machining and process machining material quantity control reducing material quantity.Structure Optimization
Adjust the structural form size and position layout to optimize the weight stability and rigidity of the ship achieving partial cost
reduction and efficiency improvement.Lean Production Measures of Xiangyu SOE
58 59Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
03 Collaborative Growth and Coexistence to Jointly Draw a Beautiful Blueprint
Concept
Holding the concept of innovation-driven development Xiamen Xiangyu deepens the
construction of digital platforms; it optimizes the merchant management system to strictly
ensure the security of goods ownership and customer rights & interests; it focuses on
the people-oriented principles to establish channels for employee growth stimulating the
internal driving force of the team; meanwhile it actively fulfills social responsibilities to
integrate corporate development with social needs and continuously engages in public
welfare activities and empowers rural revitalization achieving a coordinated improvement
on economic benefits and social value.Our Actions
Innovation-driven Escort Industrial Upgrading
Gather Sincerity Build Cooperative Ecosystem
People-oriented Compose a Bright Future
Take Responsibility Share Development Achievements
60 61Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Innovation-driven Escort Industrial Upgrading
The corporate digitalization transformation strategy adheres to the principles of "overall planning phased implementation and
prioritizing urgent needs" ensuring that digitalization projects can be conducted in a targeted and progressive manner. Through the
Based on digital intelligence empowerment and innovation-driven strategies Xiamen Xiangyu deepens the integration between online data-driven smart and collaborative transformation of business operations the Company is committed to becoming a leader in
digitalization technologies and business scenarios and conducts independent research and development to launch efficient and smart supply chain services and a pioneer in industrial Internet and conducts its work around five key tasks: "focusing on customers
smart digitalization service systems and differentiated innovative products. While accelerating the implementation of technologies enhancing efficiency and effectiveness industrial interconnection swift response and organizational transformation".it strictly builds data security shields and establishes a full-chain privacy protection mechanism to ensure the controllable security
of user information and operations which achieves the coordinated development between technological innovation and security
trustworthiness constantly creating smart and high-value service experiences for customers.Ecological win-win Smart Supply Chain Service Digitalization Empowerment
Realization Realization of transformation via platformization Connect "lines" to form a network
of three internationalization and digitalization Utilize digitalization to accelerate
transformations ecological win-win
Digital Intelligence Empowerment
Service Combination Integration of Incorporation Connect "points" to form lines
Digitalization Governance collaboration of industry and logistics and of trade and …… Utilize digitalization to enhance business
finance trade industry collaboration
Value exploration
To solidify the achievements of digitalization transformation the Company has established a digitalization organization system. A
Digital Transformation Committee composed of the corporate senior executive team is responsible for decision-making on digitalization
construction; the Digital Transformation Office is responsible for coordinating the implementation of key strategic projects at the Service Consultation Raw material Multimodal Transport
optimization services procurement
corporate level to ensure the effective integration of digitalization requirements of business lines; and the Information Technology Road Railway Strengthen and solidify the "points"Logistics Stock
Center as the innovative information body for digitalization implementation promotes the practical implementation of the digitalization Efficiency and support management + Utilize information technology to provide
basic services properly
strategy both directions: from top to bottom and from bottom to top. effectiveness Finished-
improvement Risk hedging product sales Waterway Warehousing
Digital Smart Service System
Decision-making Digital Transformation Committee
Level Digitalization Achievements
The Company constantly upgrades the Xiangyu Smart Logistics Digitalization Network to build a comprehensive supply chain service
system aiming to conduct integrated management on data related to customer logistics business flow information flow and capital
Digital Transformation Office flow. On the one hand through the three-line linkage of business risk control and supervision it enhances the comprehensive Management Level
management of the supply chain to realize smart processes online services and industrial ecologization. On the other hand through
online management and tracking of the full supply chain it further standardizes and normalizes the management on contract signing
commodity procurement & sales stock management import & export trade receivables and payables and other supply chain
behaviors.Business Line Technical Line
Execution Level
Digital Functional and Business Organization Corporate Information Technology Center Case Cloud Supply Chain Portal to Achieve Cost Reduction and Efficiency Improvement
The Company builds an online service portal – "Cloud Supply Chain Portal" which extends informatization services from the
Digitalization Transformation Governance Structure Company to relevant parties in the supply chain providing all-round efficient and convenient supply chain operation services for
downstream merchants. In 2024 the Company completed the upgrade to version 3.0. Due to the immutable and decentralized
characteristics of block chain technology it played a crucial role in the key traceable nodes in customer trade operations
Digitalization Strategy (such as registration pick-up receipt confirmation) which not only ensured the authenticity and security of trade data but
also achieved blockchain management of the entire process instructions improving the transparency and feasibility of data
As a leading enterprise of the staple commodity supply chain industry in China Xiamen Xiangyu leveraging its vast business data management. Meanwhile this upgrade realized real-time query of main information on the sales end chain online self-service
extensive customer resources and numerous application scenarios has been fully committed to promoting digital transformation and pick-up for users confirmation of payment receipts invoice inquiries and other functions which greatly simplified the process
upgrading. It has successively launched digitalization service systems such as the Smart Transportation Network Freight Platform Cloud for customers in high-frequency business scenarios providing more convenient efficient reassuring and worry-free services for
Supply Chain Portal and "Yu Lian Tong" helping to address the core difficulties of the industry. In the context of green transformation the Company and its external parties. In 2024 604 service merchants were added on this Platform with a cumulative 77094
the Company has successfully applied the digitalization achievements of "Yu Lian Tong" and Smart Transportation Network Freight orders and pick-ups and a total value of up to CNY 52.695 billion.Platform to address the core difficulties in the industries such as metal minerals agricultural products energy & chemicals and new
energy effectively improving the efficiency of supply chain circulation and reducing circulation costs.
6263
High Additional value of service/Customer loyalty LowXiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Case International Logistics Smart Services to Enhance Link Traceability Case ATS New Electronic Bill Project to Enhance Management Efficiency
The Company’s international logistics business of new energy has been growing year by year gradually expanding from "port-to- In August 2024 the ATS new electronic bill project was officially launched. The new electronic bill module has completed the
port single-link" services to "end-to-end integrated" full-chain logistics. Currently it has achieved direct services to 26 countries reconfiguration of the system to support electronic bill innovation and the compatibility of traditional bill business. It integrates
and regions around the world. In terms of exports the Company’s cumulative service volume for photovoltaic energy storage the core bill business processes such as acceptance endorsement and pledge and optimizes the operation process and
products factory construction materials and equipment ranks among the top in China. In terms of imports and re-exports payment credit management. This demonstrates the efficiency and wide acceptance of the new generation of bill system in
the Company constantly raises the integrated service level of the entire process of mineral products and metal products and practical applications and it significantly enhances the efficiency security and transparency of fund management providing
constantly explores mode innovation to launch a series of flexible combinations. Moreover in addressing customers’ demand real-time and accurate data support for corporate’s strategic decisions.for full-process node information interaction the Company has launched the smart services of international logistics based on
the cloud supply chain portal system achieving functions such as full-process visibility of containers timely abnormal warning
management and efficient risk response and the cooperative customers can also directly view real-time information of order Case Selection into the 5G Factory List to Achieve Digital Transformation Breakthrough
trajectories via the "sharing" function ensuring the quality of goods delivery and customer service level.In addressing the common problems in the shipbuilding industry such as low production efficiency differences in labor
quality and safety hazards Xiangyu SOE relies on 5G technology to build a three-layer network architecture composed of core
network edge computing nodes and terminal devices and it successfully optimized multiple scenarios such as production unit
Case Smart Warehousing to Achieve Operation Automation simulation production site detection and flexible production & manufacturing. After the program application the production
efficiency was increased by 21% while production costs were reduced and the full-process safety monitoring smart logistics
The Company has built the smart warehousing to comprehensively integrate smart terminal equipment automated operation and industrial chain collaboration were successfully implemented on a large scale.systems and cross-platform collaborative networks achieving a digitalization upgrade of the entire warehousing operation
process which effectively improves management accuracy and operation efficiency. Production unit simulation Production site detection Flexible production & manufacturing
The pick-up drivers can query the delivery documents online via the WeChat official account and OCR
Online self- will automatically verify user identity information. After completing information entry and document Through 5G network the real- The advanced safety monitoring Flexible production &
service for processing the pick-up vehicles can directly enter the warehouse via the smart gate without having to time data transmission and systems and smart early manufacturing: Through a
drivers get off the vehicle to complete the document and payment procedures significantly reducing warehouse parallel communication among warning mechanisms were smart scheduling system the
operation costs. multiple devices were achieved introduced to monitor potential configuration and parameters of the
which significantly shortened safety hazards and abnormal production line were dynamically
Full warehouse 69 warehouses and 449 warehouse management personnel in the system have fully adopted PDA
the product production cycle situations in real time. Once adjusted to achieve refined
coverage of PDA handheld devices. By scanning codes they can automatically obtain basic information of the goods and improving production efficiency problems were detected an management effectively reducing
devices complete information entry and shelving. and product quality. emergency response would production costs and ensuring
be triggered automatically stable product quality.ensuring production safety.OCR automatic The OCR technology is deployed in the stock-in and stock-out links to automatically capture key field
identification
system information of paper documents achieving the precise and automated data collection. In 2024 relying on two specialized projects: "LES Logistics Implementation System" and "IoT Data Collection Platform" Xiangyu
SOE was selected into the 2024 5G Factory List released by the Ministry of Industry and Information Technology of the People’s
Republic of China marking the phased achievement of corporate digitalization transformation.Construction of The smart warehouse in Xinhui has been newly launched to integrate the automated driving system and
smart driving
system smart dispatch module improving the efficiency of heavy goods storage and delivery operations.Research Development
Construction of The logistics system docks with customer stock-out instructions and the smart picking algorithm
smart picking automatically locates picking and distribution positions and plans the optimal picking path significantly
hub improving the efficiency of warehouse stock-out operations. To solidify the position of scientific and technological innovation body Xiamen Xiangyu has established a three-level research system
composed of "Group Headquarters Research Institute Corporate Industry Research Department and Frontline Operating Entity
Research Departments" and it has a number of full-time research teams to conduct research tracking from three dimensions: macro
The smart logistics system builds a cross-system collaboration ecosystem with key customers and industry and product. Meanwhile the Company is accelerating the promotion of advanced technologies (such as AI and block chain) to
Cross-system logistics suppliers. The customer system docking program can realize the online transmission of stock- be applied in the supply chain industry scenarios. It has established unique industrial synergy advantages in strategic industries such
collaborative in/stock-out and cargo transfer instructions creating an efficient collaborative mechanism for goods as new energy and high-end manufacturing and constantly intensifies the digitalization intelligence and green transformation of the
operation
platform ownership under the security supervision; after the external truck fleet docking program is launched it supply chain. The subsidiary of the Company Xiangyu Smart Technology has been recognized as a "Municipal Small and Medium-sized
can conveniently issue road transport tasks and track the dynamic of road transportation. Enterprise with Specialized Refinement; Differential and Innovation Characteristics" Xiangyu SOE has a provincial-level technology
center and a provincial-level engineering research center and Beijing Xiangyu Digital Technology has been recognized as a "National
High-Tech Enterprise".
64 65Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Upgrade the internal R&D management mechanism. The Company strictly complies with applicable laws and regulations such as the Patent Law and the Trademark Law to constantly refine
the intellectual property protection ensuring that others’ and proprietary intellectual property rights are not infringed.Focusing on the six links of "strategic planning & project initiation decision-making demand management project management
quality assurance knowledge management and personnel management" and oriented by market demands conduct end-to-end
full-process responsibility planning to enhance R&D efficiency.Enhance cooperation with external technological innovation suppliers to improve R&D capabilities.In 2024
Share professional knowledge and experience with partners in respective fields to promote innovation exchanges and
cooperation and jointly explore the application scenarios of new technologies (such as AI and blockchain) in the supply chain the Company held 1 2 7 patents in total including 2 6 invention patents and 1 0 1 utility model
domain via communication and exchanges with leading enterprises in big data and artificial intelligence. patents while the Company cumulatively held 1 7 software copyrights in total and also cumulatively
Uphold the core position of innovation to actively select and cultivate R&D backbone personnel with multi-disciplinary backgrounds. obtained 1 4 7 trademark registrations in total.Establish a research-oriented talent business mentor management system and job rotation training program to implement
the "Professional Capacity Enhancement Roundtable Discussion" project and stimulate internal innovation vitality via multiple
measures such as internal competition mechanisms and incentive mechanisms. In addition the R&D backbone personnel take
the lead to present 13 innovative practical achievements in multiple cutting-edge technical fields such as algorithms AI large
models and automated application scenarios.Root in the front line to empower front-end users with digitalization tool applications.Information Security
According to the demands of front-line users conduct digitalization practice training camps represented by micro-application tools
such as ShadowBot RPA and FineBI allowing users to establish a connection with digitalization. With the constant advancement of digitalization transformation the information security not only concerns the daily corporate
Digital Project R&D Management Strategy operations but also becomes the corporate’s technological moat.Information Security Governance
Case Technological Innovation in Green Ships and Marine Engineering Equipment
Xiamen Xiangyu has formulated the regulations such as the Information Security Management System and the General
Xiangyu SOE focuses on research on new theories and methods for green ships and marine engineering equipment Regulations for Information Security Management establishing an information security management structure with the
technologies aiming to address major and key technical issues in green ships and marine engineering equipment and it is Information Security Management Committee as the highest decision-making and deliberation body the Information Security
committed to establishing a research hub for green ships and marine engineering equipment technologies in China as well as Work Group as the implementation body and the information security responsible persons of subordinate enterprises as the
a discipline and technological innovation base with international influence. Moreover it aligns with the world’s cutting-edge ultimate implementation body. The members of the Information Security Management Committee are the same as those of
scientific research and practical technologies promoting the engineering progress of green technologies in the shipbuilding and the Digitalization Transformation Committee ensuring the security of information during corporate digitalization transformation
marine industries in China. In addition the new product R&D enables the corporate ship products to become further green and process.environmental reducing ship energy consumption and pollution to meet environmental protection requirements.Xiangyu SOE Jixiang series 63800-ton bulk carrier 38000-ton duplex stainless steel chemical carrier
Information Security Strategy
Adhering to the policy of "prevention orientation holding the bottom line and constant improvement" Xiamen Xiangyu constantly
standardizes and refines the full-process data security management strategies from data collection storage transmission
usage exchange to destruction and it has jointly established a sound information security protection system together with a
professional third-party institution with ISO 27001 information security management system certification ensuring the effective
implementation of information security management.The product has green and environmental properties. Due to the outstanding corrosion resistance high Information Security Risk Management
According to calculations when this ship sails at an strength and toughness of duplex stainless steel
economic speed of 12 knots its CII rating can remain materials plus the energy-saving & environmental In the event of a data leakage the Company may encounter negative impacts such as a crisis in customer trust operational
at Level A by 2030.1 protection design and efficient cargo system it has disruptions direct financial losses and legal proceedings. Therefore the Company comprehensively identifies the potential
become a benchmark product in the global chemical risks of data leakage and damage at all links of the data’s entire life cycle and adopts systematic management and technical
carrier industry featuring safety economy and solutions to ensure the security and reliability of the data’s entire life cycle. Moreover the user information collected by
environmental friendliness. corporate digitalization platform is all necessary data for offline services transactions and management which does not
exceed reasonable limits and is all based on the voluntary authorization of users meeting the commercial practices. During the
reporting period the Company did not experience any major information security incidents.Note: CII is an indicator for measuring the operational efficiency of ships which is applicable to ships with a gross tonnage of 5000 GT or above. CII represents the amount of carbon
dioxide emitted per sea mile for each unit of cargo transported. According to the IMO regulations operating ships must be subject to annual operational CII verification and be rated
in the range Grade A to Grade E according to the ship’s performance among which Grade A represents the highest efficiency and Grade E represents the lowest efficiency.
66 67Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Merchant Management Services
Develop specific management methods and implementation rules for various themes such as risk
management incident management cybersecurity terminal security and data security and enhance
institutional constraints; Merchant Governance
The operation entities of "Xiangyu Smart Transportation" and "Xingxing Xiangnong" have both passed the Merchants as important partners in the Company’s business ecosystem play a crucial role in the corporate operation and development
third-level security protection qualification filing; and the effective management of merchants is a key element in the corporate risk management. Therefore the Company has
Establish application security testing norms and conduct security tests on newly launched applications established a two-level governance structure to constantly refine the merchant management system.Management and existing applications. In 2024 a total of 20 application security tests were conducted and security risk
Measures reinforcement was promoted; Corporate Headquarters Subordinate Subsidiaries
Constantly conduct information security tour inspections. Approximately 720 tour inspections were conducted
in 2024 achieving risk prevention and timely response;
Focus on building an active security defense system and together with third-party professional institutions
Decision-making body: Xiamen Xiangyu Risk Management Main responsible department: A main responsible department
conduct information and data security attack and defense drills checking and supplementing corporate
Committee has established the Professional Committee of for merchant credit management is established to coordinate
security protection system from the perspective of attackers and forming a summary report;
Supply Chain Operations and its authorizer as the decision- the merchant management work of all business departments
Conduct information security awareness training covering approximately 1000 person-times to enhance the
making body. guiding and collaborating business departments to achieve
information security awareness of relevant personnel.merchant risk control.The users’ personal data collected is mainly stored on Alibaba Cloud and relevant data is also backed up Main responsible department: A main responsible department First-line units: As the front-line units in contact with
and saved in the local data center; for merchant credit management is established to coordinate merchants the business departments cooperate with
Technical The technical measures such as access control information encryption and anti-intrusion and leakage the merchant management work guiding subordinate the relevant corporate management requirements to fully
Measures prevention are used to achieve full-process information security risk prevention and control; subsidiaries to achieve merchant risk control. investigate and evaluate the credit status of merchants.Enhance network security protection and detection via firewalls application security firewalls and situational
awareness.Merchant Two-level Governance Structure
Merchant Strategy
The Company constantly enhances the dynamic tracking of merchant credit information to achieve effective control on the entire cycle
of merchants and implements the hierarchical and categorized management for strategic merchants. It encourages all levels to jointly
participate in the maintenance of strategic merchant relationships to enhance the flexibility and effectiveness of resource integration
responding promptly to merchant demands.Pre-event Management Mid-event Management Post-event Management
The business departments investigate The business departments Both levels
the equity background main business properly maintain good jointly promote
Information Security Training industry reputation financial data etc. of communication with the the construction
merchants. Based on actual transaction merchants. According to internal of a merchant
requirements they select a business mode prompts and external information evaluation tag
with controllable risks according to the fully collect and analyze negative system handling
Gather Sincerity Build Cooperative Ecosystem merchant credit and the transaction motive public opinions of the merchants and tracking
evaluation. achieving dynamic adjustments the abnormal
to the business proposal. merchants and
Xiamen Xiangyu always adheres to the business operation philosophy of "creating circulation value and serving corporate growth" to The financial department of the subsidiary implement blacklist
actively respond to customer demands and integrates high-quality resources to provide customers with diversified service packages is responsible for evaluating the merchant’s The main responsible department management
outputting integrated supply chain solutions in a customized manner. business qualifications such as invoice for subsidiary management on significantly
qualification and tax qualification to prompt regularly checks the push of overdue
As a supply chain service enterprise the corporate business partners include suppliers customers and merchants among which the risks. public opinions travel warning merchants.merchants are both suppliers and customers and can be deeply cooperated at both the procurement and sales ends. Moreover the information and abnormal
Company is committed to establishing long-term and benign cooperative relationships with its business partners maximizing customer The main responsible department for reports from the business
value and job value. In addition the Company constantly enhances the supply chain management and focuses on building a safe subsidiary management is responsible for departments and monitors the
stable smooth and efficient industrial chain and supply chain system creating a mutually beneficial and win-win value ecosystem. verifying the merchant credit and analyzing credit changes in key merchants.and disclosing abnormal points in the credit.
68 69Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Logistics Supplier Management
Credit merchant management Non-credit merchant management
The credit-granted merchants must have a promising The business units need to control the implementation of In the Logistics Supplier Management System the Company has clearly defined the admission assessment and withdrawal
industry outlook and sound financial status. Within the past upper credit limit according to merchants’ business conditions mechanism for logistics suppliers to actively prevent logistics operation risks and optimize the structure of logistics resources
6 months before applying for credit the first responsible and turnover capabilities so as to ensure smooth business enhancing corporate trade logistics allocation capabilities and raising the overall level of logistics services.
person for business must conduct an on-site investigation and turnover.dynamically track the usage of the credit limit.Admission and investigation mechanism
The Company has established a sound logistics supplier admission process to ensure that
Requirements for Classification Management on Different Merchants
the partners meet the business requirements and possess the necessary qualifications.New suppliers must be subject to initial investigation including credit status management
Merchant Risk Management capabilities and risk control of goods ownership and will be reviewed in accordance with
domestic & foreign policies and industry regulations. Logistics suppliers also must be subject
While refining the management system the Company enhances merchant risk management via various measures including to a secondary investigation which is reviewed by the Logistics Management Center to ensure
environmental and social due diligence dynamic management and digitalization construction to ensure the compliance stability and controllable risks. For urgent business a single-ticket review & approval mode can be adopted by
sustainable development capabilities of partners providing a safeguard for the supply chain security and the stable business operation. the Company however for long-term cooperation it is still necessary to be admitted according to
the regular investigation process.Environmental and social due Dynamic management of Digitalization construction of
diligence merchants merchant management Hierarchical and dynamic management
During the due diligence and Actively explore new channels for Implement comprehensive The Company conducts classification and hierarchical management on suppliers based on
evaluation process of merchants merchant information to obtain merchant management from all their qualifications cooperation history and management level. Different grades correspond to
the Company focuses on a wider range of merchant credit perspectives and build merchant different cooperation standards return visit frequencies and risk control measures. For example
investigating the environmental management information sources 360 system to form a merchant Grade A suppliers are the Company’s own or controlled entities which can be exempted from
protection input production and establish a sound public opinion life cycle data kanban integrating return visits while Grade E suppliers due to abnormal situations are necessary to enhance
safety conditions and employee monitoring system to conduct public litigation public opinion credit limit tour inspections. The Company conducts dynamic adjustments on suppliers every year to ensure
rights & interests protection opinion investigations around key overdue and cooperation status optimized resource configuration.of the cooperative merchants merchants. Utilize the classified modules providing data support for
and prioritizes selecting green investigations and dynamic risk control and business operation
development enterprises to ensure warnings to detect potential risks in decision-making. Management on abnormalities and risk warning
the sustainability of the supply advance and take timely measures
chain. to control such potential risks. The Company set a clear handling mechanism for abnormal supplier situations including black
list and gray list. The suppliers on black list are generally prohibited from cooperation for two
years and can only be restored after re-investigation. The new cooperation for the suppliers
Merchant Management Measures on gray list is suspended and the decision to restore depends on the evaluation situation. In
addition the Company utilizes the abnormal feedback mechanism of logistics to monitor high-risk
abnormalities in the cooperation in real time. If necessary the logistics program will be adjusted
to ensure business security.Supply Chain Stabilization and Strengthening
Corporate Logistics Supplier Management Mechanism
As a supply chain service enterprise Xiamen Xiangyu not only pays attention to the management of upstream suppliers but also
attaches great importance to the management of its own supply chain security. While enhancing the procurement management it
strictly controls supply chain risks to effectively safeguard supply security.During the reporting period the number of the Company’s logistics suppliers was 3 6 4 6 . The coverage rate of
Supplier Management logistics supplier assessment reached 1 0 0 % and the pass rate of the assessment was 9 3 . 1 5 % .During the procurement process the Company adheres to the principles of "openness transparency and merit-based selection".The Company and its subordinate companies have formulated relevant documents such as the Procurement Management System
and the On-site Inspection Operation Guidelines for Spot Procurement of Staple Commodities based on their business properties to
clearly define the responsibilities of the procurement departments promoting the standardization processization and efficiency of the
procurement.
70 71Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Xiangyu New Energy The Company implements a comprehensive due diligence and evaluation mechanism to strictly supervise its business partners in
terms of environmental protection social responsibility and labor rights & interests ensuring that the suppliers meet corporate’s
sustainable development standards. The Company not only conducts detailed reviews during the admission stage but also continuously
Establish a logistics supplier management system to form a strict full life cycle management system for logistics suppliers tracks and assesses during the cooperation process. It takes corresponding measures against business partners that do not meet the
and evaluate the admission qualification of some suppliers via ESG scores carbon footprint data and emergency response requirements so as to maintain the stability of the supply chain and corporate’s social responsibility. Meanwhile the Company requires
capabilities. Moreover conduct regular management and optimization on different qualified suppliers and promptly eliminate all suppliers to sign the Integrity Agreement during the cooperation.the suppliers failing to meet the standards. Furthermore evaluate the admission qualification of business partners and conduct
regular assessment to implement a dynamic assessment mechanism and flexibly adjust the cooperation volume. In addition
rely on the smart logistics platform to integrate the supplier data (such as transportation trajectories public opinion tracking)
achieving shorter handling response times and dynamic management adjustments on abnormalities. The Company attaches great importance to The Company focuses on the quality of
the full life cycle management on suppliers suppliers’ products and their responsibility
and customers covering admission degree to customers understanding their
process tracking and post-evaluation industry reputation and maintains a high
Xiangyu Agricultural Products
all of which focus on their social and level of attention to social responsibility
environmental values and responsibilities. deficiencies such as malicious fraud
Formulate the Procurement Management System for the rice processing and sales end to optimize the procurement process privacy infringement or unfair competition.and strictly implement the centralized purchase e-commerce procurement inquiry and tender and other methods to improve Once verified the cooperation will be
procurement efficiency and transparency. Meanwhile all non-publicly tendered suppliers are required to obtain the Group’s prohibited.qualification certification to reduce procurement risks ensuring the continuity and safety of agricultural product supply.Xiangyu Oils
Full life cycle Product quality and customer
Implement 100% full-process supervision on suppliers including supplier evaluation qualification review pre-job training safety management responsibility
inspections and payment of employer liability insurance;
Formulate the Acceptance Standards for Raw Materials and Auxiliary Materials and the Verification System for Raw Materials In the decision-making link of Due After supplier admission
Auxiliary Materials and Packaging Materials to standardize the verification process and clearly define the acceptance indicators supplier admission and evaluation diligence and Continuous monitoring the Company continuously
inspection methods and disposal standards for various raw/auxiliary materials and packaging materials ensuring the quality and evaluationthe Company considers the monitors their performance in
stable supply of oil products. input and performance of environmental protection and
the cooperative suppliers in the public opinion monitoring
environmental protection program is used to classify
Supplier Management Measures by Each Subordinate Business Sector Environmental Social production safety and protection compliance responsibility environmental negative public
of employees’ rights and interests concern consideration opinions as high-risk evaluating
which will be used as the basis their impact and adjusting the
for business resource allocation business cooperation program
and the Company will prioritize accordingly.selecting the green development
enterprises to ensure the stability
of the supply chain.For production & manufacturing
suppliers especially those in high-carbon The Company pays attention to the rights &
industries during the on-site investigation interests and labor protection of suppliers’
the Company pays attention to their employees and the public channels and
environmental compliance issues including on-site investigation are used to understand
equipment environmental compliance the working environment production
advanced production technology pollution safety awareness employee treatment
and waste utilization design and the and internal management evaluating the
rectification of past environmental stability of human resources.punishments.Supplier’s ESG Assessment Dimensions
72 73Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Supply Chain Operation Risk Management
In recent years the uncertainty of the global trade environment has increased and the international trade frictions geopolitical Case Jointly Build a Supply Chain Security Shield to Identify Overseas Logistics Risk Points
conflicts local wars and sudden "black swan" events led to increased potential risks in supply chain management. In the commodity
operation and logistics sector the Company focuses on goods ownership management smart logistics and risk control to build a safe
and stable supply chain logistics management system. As the internationalization strategy constantly advances the operation and
management mechanisms of overseas logistics have received increasing
Logistics Supply Chain Operation Risk Management concern. To further support the expansion of international business and
respond to the front-line needs the corporate’s Logistics Management Center
held two functional safeguard sharing sessions of international logistics in
Establish goods ownership security management system October 2024. The sessions focused on discussing the logistics environment
The Company formulates regulations such as the Management Regulations for Logistics Abnormality Feedback the policies logistics resources and potential risk points in multiple key regions
Transportation Management System and the Warehousing Management System to clearly define the re-sponsibilities for such as Africa Europe Asia Middle East and Southeast Asia and proposed
goods ownership manage-ment. Moreover the Company establishes a goods ownership risk identification network via "cross- targeted localized response strategies to directly address the pain points in
region cross-border cross-industry" collaborative mechanism. In terms of overseas aspect constantly optimize the cross- overseas business operations which attracted the participation over 700 Training Venue
border goods ownership control mode. In terms of domestic aspect collaborate with industry partners to enhance the on-site person-times.goods ownership management strengthening risk prevention capabilities.Optimize logistics risk control management
Case Xiangyu New Energy Optimizes Supply Chain Risk Management to Enhance Supply Chain Resilience
The Company implements classified management on high-risk transfer nodes delivery modes key products and new
business modes and enhance tracking and control to regularly review logistics risks optimizing control programs. Relying on
the smart warehousing system the Company promotes digitalized stock management to improve stock turnover efficiency. Xiangyu New Energy collaborated with storage providers transportation companies customs brokers and other partners to
Meanwhile the Company builds a two-level auditing and inspection system to strengthen process monitoring of logistics establish a sound safety management system for storage and transportation and also built a monitoring system covering the
operations ensuring compliance and efficiency in operations. entire process. Moreover it strengthened risk management according to the characteristics of the new energy industry (such
as lithium battery transportation safety overseas carbon tariffs) and it requires suppliers to hold 100% of relevant hazardous
Refine insurance and liability recovery mechanisms materials certifications and to conduct regular safety and emergency drills. Meanwhile Xiangyu New Energy according to the
characteristics of the new energy industry developed the personalized smart logistics platforms and integrated digitalization
The Company formulates the Insurance Management Regulations to establish an insurance group for coordinating the services such as network freight platforms and supply chain finance achieving full-chain visualization and smart management.management on goods ownership insurance affairs against logistics abnormalities ensuring that the recovery mechanism In addition through dynamic and real-time tracking of digitalization means Xiangyu New Energy effectively improved supply
can be quickly initiated when goods ownership is damaged. For risks in business operations ensure that full insurance chain efficiency and reduced costs and precisely responded to customers’ diverse demands so as to effectively control supply
coverage and adequate insurance premiums are paid to safeguard corporate property and goods safety. Based on liability
chain risks helping the supply chain management upgrade towards efficiency stability and intelligence.division clarify the disposal program to increase the success rate of claims and recovery ensuring the rights and interests of
the Company and customers.Supply Chain Risk Management Mechanism of Logistics Sector For the production & manufacturing sector the subordinate units of the Company actively evaluate the supply chain risks to set
Pre-event Management annual procurement targets and evaluate supplier supply risks and quality risks and implement rapid responses to production safety
operational disruptions and supply crisis caused by major market fluctuations public emergencies or natural disasters ensuring the
* Conduct the investigation and admission of logistics suppliers and the due diligence for project-based business logistics security and stability of the supply chain.management and set the review and approval paths based on multiple dimensions such as whether controlling goods in the
logistics cooperation mode and the qualification background of the sub-suppliers.Mid-event Management Case Xiangyu SOE Optimizes Procurement Management to Ensure Stable and Safe Supply
* Conduct "Three Unfixed" warehouse inspection mode for logistics suppliers under goods ownership logistics supplier return
visits market public opinion capture tracking of abnormal logistics goods ownership internal audit of logistics control In 2024 due to tight market supply & demand and multiple acceleration of production program the material supply of Xiangyu
etc. Based on the problems identified during the above management process or changes in the operating conditions of the SOE faced challenges. To effectively control the procurement risks Xiangyu SOE classified the materials into Categories A B
logistics suppliers dynamically adjust the cooperation program with the logistics suppliers. and C based on their importance to the production nodes and set an early warning mechanism to establish a refined tracking
management system ensuring the stability of key material supply ultimately reaching the successful achievement of the annual
Post-event Management production target.* Establish black list and gray list management standards for external logistics suppliers and include in the black list and gray Facing the uncertainty of steel plate supply Xiangyu SOE optimized the procurement management mode to standardize the
list management on logistics suppliers with abnormal behaviors that can’t be effectively resolved while keeping the right of procurement process and implemented the kanban management to strengthen process control and assessment review of steel
recourse according to the responsibility division. mills steadily increasing the steel plate delivery rate to ensure the complete supply.* Conduct audits and evaluations on internal logistics operation standardization and perform assessment management on Meanwhile Xiangyu SOE actively innovated the procurement mode and locked the procurement price of steel plates in advance
the responsible General Managers and Deputy General Managers. according to the market trends and production needs. Moreover Xiangyu SOE dynamically adjusted the procurement strategy
* Establish an insurance group to coordinate the management and effectively recourse against the insurance affairs with and the annual procurement cost was saved by CNY 187 million compared to the budget achieving cost reduction and efficiency
abnormal goods ownership. improvement which further enhanced the supply chain resilience and operational efficiency.Full-process Management of Logistics Supply Chain
74 75Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Improve Service Quality In addition each subordinate unit of the Company has established a strict quality management system based on its business properties
and the sound system/regulations refined process control and advanced management methods ensure the safety and reliability
of products improving customer satisfaction. During the reporting period 7 subsidiaries of the Company obtained ISO 9001 quality
Quality Assurance management system certification.The Company relies on the "supply chain service and production & manufacturing" industrial chain operation mode to implement
comprehensive quality management for products and services according to specific requirements of each business sector and it For the rice processing and sales end it has formulated normative documents such as the Raw Material
establishes a quality management system covering concept strategic design system formulation training & education testing and Stock-in and Stock-out Management System the Production Management System the Finished Product Xiangyu
inspection product traceability product recall complaint management and qualification certification which ensures compliance of Packaging Management System and the Safety Management System for Prevention of Food Cross-Agricultural
business operations stability of services and reliability of products effectively safeguarding customers’ rights & interests and the stable Contamination enhancing the full-process quality management. It strictly implements the raw cereal Products
corporate operation. stock-in and stock-out management workshop production changeover control and product marking and
traceability system ensuring that the quality of raw materials and finished products meets the national
and corporate standards. Meanwhile it establishes a quality inspection management system to conduct
strict inspections on stock-in and stock-out cereals raw cereals for processing finished products and
by-products ensuring stable and conformed product quality. Additionally it strengthens food safety and
hygiene control and implements measures such as foreign object control in the workshop personnel
hygiene management prevention of cross-contamination and pest & rodent control to strictly restrict
the external pollution sources ensuring the safety of the production environment. It also implements 5S
Supply Chain Partner Warehousing and Logistics Transaction Security and management and equipment cleaning systems to improve the standardized management level of the
Management Security Assurance Quality Traceability production site.*The Company strictly implements *Enhance the management of *Establish a standardized contract
the supplier admission review goods ownership and strictly management system and It adopts a "pre-event — mid-process — post-event" full-process control mode to ensure the safety of
and conducts comprehensive implement the measures such as clearly define quality standards goods during storage and transportation. In the pre-event stage it conducts on-site investigations and
evaluations around aspects separate stacking and placement in procurement storage Xiangyu comprehensive risk evaluations on logistics suppliers’ qualifications industry scale assets hardware
such as qualifications asset of goods and hanging goods transportation and delivery Aluwin facilities and management capabilities. In the mid-event stage it arranges outdoor personnel of logistics
status industry experience ownership signs to ensure clear links improving transaction management to conduct regular on-site supervision of loading and unloading to ensure that goods are
and warehousing facilities ownership and reduce the risk of transparency. Relying on digital stored according to the principle of separate stacking and placement and it hangs the goods ownership
ensuring that the cooperative goods ownership disputes. technology the Company labels to clarify the goods ownership. In the post-event stage it conducts regular on-site return visits and
parties have stable performance *Arrange the outdoor personnel establishes a full-chain quality re-evaluation of cooperative logistics suppliers to ensure that the partners constantly meet business
capabilities. Meanwhile the of logistics management to traceability system achieving full- requirements and safety standards.Company establishes a dynamic conduct regular tour inspections process visualized tracking from
management mechanism for and supervise the loading and the procurement source to the
suppliers to conduct regular on- unloading process to ensure that final delivery which ensures stable
site inspections and return visit the operation is controllable and and reliable product quality. It enhances quality and precision management via various means achieving the first breakthrough of
on performance and optimizes safe. In addition the Company 50% in the simulated loading rate of the sample ship and the single ship saves about 57 hours of load
the supplier structure based establishes a logistics abnormality Xiangyu hook usage time helping to shorten the dock period. The segment accuracy management realizes the
on cooperation performance to feedback mechanism which SOE visualization of "three lines" work and it relies on the constantly updated Xiangyu SOE Quality Manual
improve the overall quality of the responds quickly and formulates to ensure consistency between standards and models cultivating front-line employees to master and
supply chain. solutions to problems identified implement the standards. In addition it implements and promotes a smart quality inspection personnel
during implementation reducing management system covering six production workshops. This system is first of its kind in China and has
damage to goods and transaction been highly recognized by European ship owners.risks.Measures for Ensuring Supply Chain Service Quality It formulates the Product Traceability System and the Recall System for Unsafe Food to ensure the full-
process traceability of products from the source to the finished product enhancing the food safety
Xiangming safeguard capability. Meanwhile the Recall System for Unsafe Food clearly defines the recall process
Oils when unsafe food is detected after entering the market which ensures that food safety risks can be
promptly and safely addressed to prevent the further spread of non-conformed products maximizing the
protection of consumers’ rights and interests.Quality Management Highlights by Subordinate Units of the Company
76 77Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Customer Rights Protection People-oriented Compose a Bright Future
According to the actual situations of each business sector the Company has established a sound customer service management
system to ensure timely collection analysis and response to customer feedback thereby optimizing business processes and enhancing
customer experience. The Company conducts regular customer satisfaction surveys collecting opinions and suggestions via various Xiamen Xiangyu adheres to the concept that talents are the primary resource for corporate development so it regards talents as the
forms such as questionnaires interviews and online surveys and then understands customer needs and expectations to conduct most valuable capital and considers them as the core driving force for corporate growth. Moreover the Company pays great attention
reasonable evaluations of service quality constantly improving services and products. to the occupational health and safety of its employees and opens up democratic communication channels to effectively safeguard
the legal rights and interests of employees. In addition relying on the "three transformations and two supports" system the Company
Supply Chain Service Sector builds a digital-driven human resources management system including selection cultivation utilization management and employee
relationship management so as to promote the attraction and retention of talents.The Company has formulated the Strategic Merchant Management Measures to implement hierarchical management on strategic
merchants and it deeply explores the core pain points to provide customized package services for them fully meeting the needs of
strategic merchants.Share-level strategic merchants Subsidiary-level strategic merchants Employment and Rights & Interests
The Company prioritizes allocating the strategic merchants The subsidiary constantly tracks the business dynamics and The Company strictly complies with applicable laws and regulations such as the Labor Law as well as the applicable policies in the
with internal resources such as funds logistics and cooperation implementation of the merchants including operating location and standardizes management in aspects such as recruitment and dismissal and democratic communication to
business resources and it also innovates management and changes in credit status major production & operation safeguard the legal rights and interests of employees. Through an internal and external combined approach the Company constantly
assessment methods to provide comprehensive support: matters and the achievement of agreement targets so as to enhances internal training and external recruitment efforts concentrating resources to strive to build a leading team professional team
adjust the service program at any time:
*The main responsible department is responsible for and an international talent team that is capable of doing things doing them well and achieving results.participating in the formulation of cooperative program The subsidiary’s General Manager and the relevant
and resource coordination before the event tracking *departments track and supervise and adjust the program
the implementation of cooperation promoting high-level based on the annual cooperation situation. Recruitment Management
interactions and coordinating problem-solving during the
event and reviewing the cooperation situation after the event. *The responsible person of business is responsible for Holding the principle of selecting the best candidates based on competence and integrity the Company has formulated the Recruitment
maintaining the relationship with the strategic merchants to
*A senior management liaison person is in charge of maintaining Management System to ensure that the recruitment process is open fair and impartial and it has clearly defined the standards and promote the implementation of the program promptly reporting
the relationship with strategic merchants and they visit the procedures for annual recruitment program formulation campus recruitment social recruitment internal transfer etc. covering aspects changes.merchants at least once a year to promote deep cooperation. such as information release screening and evaluation interview assessment background investigation approval for recruitment
probation and formal employment etc. In addition the Company strictly complies with the requirements of job avoidance and anti-
discrimination in recruitment to ensure equal opportunities for job seekers creating a healthy and harmonious workplace environment.Production & Manufacturing Sector The Company has established a sound personnel recruitment system including the "competency" model for recruitment job
Xiangming Oils has formulated the Customer Complaint Conduct Customer Satisfaction Surveys qualification standards and job level system to improve the scientificity of personnel selection and employment. Moreover the Company
Management Regulations to enhance and refine the construction Case to Listen to Customer Feedback formulates talent selection standards based on job requirements and conducts targeted training for interviewers. Furthermore it
of after-sales services clearly defining the departments promotes the competency model to improve the ability to select talents and comprehensively assess candidates’ suitability for the
responsible for handling complaints regarding the corporate position via professional assessments personality assessments etc. ensuring the quality of talents and constantly expanding the
products and services the handling procedures and the closed- In 2024 Xiangming Oils took proactive measures to corporate talent pool.loop handling mechanism and issues the Customer Complaint conduct customer satisfaction surveys aiming to gain
Summary and Evaluation Report to ensure that customer a deep understanding of the needs and feedback of
complaints are promptly and properly handled implementing soybean meal and soybean oil customers. Through
internal improvements based on the complaints. Xiangyu SOE questionnaire surveys Xiangming Oils actively collected
adheres to the policy of "Responsibility Speed and Commitment" customers’ opinions and suggestions and a total of 156
to establish an after-sales service management system valid questionnaires were recovered. During the reporting period the
responding to customer needs efficiently to gain market trust.The survey results showed that customers highly Company was awarded several
praised Xiangming Oils’ products and services. Among external employment honors
Customer Complaint management goal of Xiangming Oils them 151 questionnaires indicated "very satisfactory" such as the Top 100 2024 China
accounting for 96.79%; 5 questionnaires indicated
The effective complaint rate per 10000 tons of soybeans Best Employer Award by Zhaopin
processed is no more than 0.5 cases "satisfactory" accounting for approximately 3.21%; and Limited the 2024 Extraordinary
no questionnaire indicated "average" or "unsatisfactory".Xiangming Oils listened to the voices of customers for Employer by Liepin and the Most
The effective complaint rate per 10000 constantly optimizing its products and services utilizing Influential Emplovers 2025 by
tons of soybeans processed was 0.475 customer feedback as an important driving force for Haitou.Achieved and the handling rate for effective constant corporate improvement and development.complaint was 100%.
78 79Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Equality and Diversity
As of the end of the reporting period the Company had 7 9 2 9 employees in total among which 9 7 4 were newly The Company has always advocated an equal and diverse workplace atmosphere and adheres to the principle of zero tolerance
100% 19% for discrimination to create a harmonious and inclusive working environment. In terms of recruitment remuneration training and hired the proportion of full-time employees was and the employee turnover rate was . promotion opportunities the Company does not discriminate or treat unfairly based on factors such as employee age disability
ethnicity gender marital status nationality political status race religion or sexual orientation. In the Xiangyu Group Charter the
Company has clearly defined the "employment orientation" - based on ability and performance instead of educational background
During the reporting period the Company actively fulfilled its social responsibilities. The coverage rate of social security
experience identity or rigid criteria. It insists on the principle of value creation as the first priority and those who create value will
contributions reached 1 0 0 % and a total of 7 disabled employees and 1 0 6 demobilized military personnel were undoubtedly receive reasonable rewards. In the Internal Reward and Punishment System and the Remuneration Management System
employed. it has clearly stipulated that all employees shall be equal and treated equally before corporate system.Anti-child Labor Employment
The Company has established a strict identity verification mechanism during the recruitment and induction links. During recruitment
applicants are required to sign and confirm personal information including their date of birth and anyone who provides false
information conceals key details or misleads the Company will be prohibited from being hired. After the approval process for
Employee Composition recruitment is completed the Human Resources Department reviews whether the age meets the minimum working age requirement to
ensure compliant hiring. During induction all new employees must provide original identity documents for on-site verification and the
copies thereof are retained for archiving to ensure standardized file management. In addition corporate’s internal audit department
Proportion of employees by gender Proportion of employees by age conducts regular spot checks of employee files and induction records to prevent the employment of child labor.
8.19%
Anti-discrimination and Anti-harassment
36.04%31.25%
The Company explicitly opposes workplace harassment and protects employees from sexual harassment threats and intimidation
Male employees Number of employees aged below 30 at work. In case of any related incidents the Company will respond promptly and intervene quickly conducting an investigation in
Female employees Number of employees aged 31 to 50 accordance with relevant regulations and providing professional psychological guidance to the harassed individuals and will impose
63.96% corresponding punishments on the perpetrators to firmly safeguard the legal rights and interests of the parties involved preventing the
60.56% Number of employees aged above 50 recurrence of such incidents.
Prohibition of Forced Labor
Number of employees by educational Number of employees by position
background The Company strictly complies with the provisions in the Labor Contract Law regarding the prohibition of forced labor and it has
9.57% 0.09% 4.00% formulated the Labor Contract Management System and the Attendance and Leave Management System to clearly stipulate the working
hours leave and overtime of employees ensuring legal employment.
17.47%
Junior college or below High-level management
40.75%
Bachelor’s degree Middle-level management
6.10% Working hours
Master’s degree Junior-level management
According to the Attendance and Leave Management System the Company implements a five-day workweek system
49.59% Doctoral degree General employee and employees are not allowed to work more than 8 hours per day and more than 40 hours per week.
72.43%
Leave rights
According to various laws and regulations the basic types of leave provided for employees include annual leave
Proportion of employees by category personal leave sick leave work-related injury leave marriage leave bereavement leave maternity leave (including
breastfeeding leave and paternity leave) and parental leave. For employees working in external assignments or in
3%
remote locations return leave is provided and management rules for each type of leave are formulated.
23%
30% Production personnel
Administrative personnel Overtime work
Sales personnel
Service personnel The Company encourages its employees to complete their tasks within working hours. If overtime is truly necessary
Technical (R&D) personnel a written application must be submitted in advance and approved by the direct head. The Company arranges
Other personnel
14% compensatory time off for employees whose working hours have been extended with approval. For those who can’t be Financial personnel
16% given compensatory time off they will be paid according to the hourly rate as stipulated by law.
9% 5% Cooperate Regulations on Anti-forced Labor
80 81Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Enterprise-university Cooperative Cultivation
During the reporting period the Company did not experience any negative incidents related to child labor forced labor or
In 2024 the Company has continuously deepened its cooperation with the co-built institutions/universities and actively expanded new
workplace discrimination. partners. Based on the corporate development needs the Company has established industry-university-research cooperation with the
Metallurgy College of University of Science and Technology Beijing the Mining College of China University of Mining and Technology the
College of Metallurgy and Materials of Northeastern University and the State Key Laboratory of Advanced Solidification Technology of
Shanghai University cultivating specialized talents in the metallurgical mining and bulk commodities industrial chain. By integrating
the educational and talent cultivation resources of universities and the capital management and industrial practice advantages of
enterprises it effectively promotes the transformation of industry-university-research achievements creating a virtuous cycle of mutual
Case Standardize Employment Publicity and Guidance to Conduct Human Resources Compliance Training promotion and collaboration between professional fields and industries.In 2024 the Company invited lecturers from the Labor
Safeguard and Rights Protection Center of Xiamen City to Case A Delegation from the Education Department of Hunan Province Visited Xiangyu
provide a training session on labor law and labor contract
law compliance for the human resources team focusing
on enhancing the ability to prevent labor risks and In December 2024 various universities in Hunan Province came to the
conduct practical operations. The training covered the Company under the leadership of the Education Department of Hunan
requirements for standardized employment and clarified Province for a visit and exchange. The Company understood the professional
the principle that labor relations must be established settings and key disciplines of each university and both sides exchanged
within the legally prescribed employment age range. views on the corporate talent needs and the employment policies for
This training enhances the legal compliance of the university graduates. In the future the Company will actively go to
corporate labor management and raised awareness of universities in Hunan to select and recruit talents further enhancing the
standardized employment practices providing a powerful cooperation and collaboration with various universities in Hunan.safeguard for optimizing human resource management Employment Compliance Training Communication Venue
and reducing legal risks.Other Enterprise-university Cooperation Activities
Attract High-tech Talents
The Company places great emphasis on attracting and retaining international digital and high-end talents in the manufacturing sector.By implementing precise recruitment strategies expanding global talent introduction channels and providing living security and care it
prepares powerful human resources support for corporate development.Refine the promotion mechanism Reasonable resource Living security and care
allocation priority
I n s te a d o f e d u c a t i o n a l b a c k g ro u n d o r Customize remuneration and Coord ina te resources to A Delegation Led by the President of Dongbei University of Signed an Internship and Practical Training Base Agreement
experience the core criteria for promotion shall appraisal incentive program help address issues such Finance and Economics Visited Xiangyu with Dalian University of Technology
be actual contributions such as technological for high-end talents to provide as employment of spouses
breakthroughs work achievements and remunera t ion p rotec t ion children’s education and
project benefits. Dual-channel development: during the integration period medical needs. Assist them
Establish a separate professional technical or trial period and reduce in applying for various talent
channel independent from the management the pressure of performance subsidies at the provincial
channel providing a dual-channel development assessment and provide municipal district and free
opportunity and the treatment of the professional functional teams to ensure trade zone levels and applying
technical channel is aligned with that of the the project implementation for talent apartments etc.management channel granting professional of high-end business talents Recommend eligible talents
decision-making rights and cross-departmental to be lenient towards periodic to participate in government
collaboration authority. temporary losses. talent programs.Participated in the 2024 National Hundred-University Visiting Invited to Participate in the "Innovative Hong Kong - International
Mechanism for Attracting High-tech Talents Enterprises and Job-Seeking Docking Activity in Xiamen Talent Carnival" Recruitment Event
82 83Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Democratic Communication Remuneration and Welfare
The Company fully understands the significance of democratic management and
communication for the healthy corporate development so it has attached great During the reporting period the The Company constantly explores and refines its remuneration and welfare structure to establish the standardized remuneration and
importance to giving full play to the main role of employee representatives. It has welfare standards as well as build a fair and reasonable remuneration and incentive system and conducts various corporate cultural
formulated democratic management systems such as the Employee Representative Company conducted "Going to the publicity and implementation as well as employee care activities to provide a platform for employees to showcase their talents and
Congress System and the Implementation Measures for Enterprise Affairs Disclosure Grassroots Listening to Public achieve career development helping to enhance the attraction and retention of talents.to constantly promote grassroots democratic construction and promote harmonious
labor relations. Moreover it has promoted the institutionalization standardization and Opinions" seminars at the front
proceduralization of democratic management work forming a "people-oriented jointly line. Throughout the year 3 1 on-
seeking development" favorable corporate environment. The Company has established a site investigations were completed
Labor Dispute Mediation Committee composed of employee representatives labor unions
and representatives from the Human Resources Department exercising the labor dispute and 5 0 7 suggestions and opinions
mediation functions to safeguard the rights and interests of employees. Refine the remuneration and Attach importance to Establish an incentive were summarized. welfare system corporate culture construction mechanism
Face-to-face Communication Written Communication
While soliciting the demands of
Annual business meeting Daily report weekly report employees the Company also Establish a reasonable remuneration Disseminate mission vision core Establish and constantly explore a
and welfare structure as well as values and corporate spirit as well as scientific and reasonable incentive
Leadership symposium at all levels Special reports related to daily actively offered suggestions and
business operations etc. standardized remuneration and advocate the "Five-Star Behavior" to mechanism and take performance
Monthly regular meeting strategies for business development welfare standards to provide integrate the culture into the work assessment as the starting point
Performance feedback interview employees with better living security enhancing employees’ sense of design multi-dimensional and
Online Communication thereby helping enhance the helping them fully devote themselves mission and cohesion. medium- and long-term incentive
Daily heart-to-heart talk management capabilities at the into their work. programs for employees in different
Team-building activities etc. Corporate OA Yu Xin etc. front line. organizations different positions and
different levels to mobilize employees’
work enthusiasm achieving shared
Democratic Communication Channels
benefits and risks between individuals
and the enterprise.Case Conduct Employee Satisfaction Surveys to Address Employee Concerns
Management Concept on Remuneration and Welfare
The Company regularly conducted various employee surveys including "Organizational Satisfaction Survey" and "Personal
Development Expectation Survey". Through these satisfaction surveys the Company understood the employees’ feelings and Remuneration Management
thoughts regarding corporate culture systems and management and listened to the employees’ voices so as to promptly
identify existing problems and formulate improvement and enhancement plans as well as follow up on their implementation. The Company has formulated the Remuneration Management System to establish a remuneration system centered on basic salary
position salary service tenure salary and performance bonus and it also implements equity incentives as a long-term incentive
The most recent survey covered a total of over 500 employees from the Company headquarters and domestic platform measure. The annual remuneration determination plan adheres to the principle of "salary can be as adjusted higher or lower
companies. It focused on 20 questions across 7 dimensions to conduct survey and the overall satisfaction score was 4.28 out
salary changes along position" and conducts annual position determination and salary determination to ensure that remuneration
of 5 falling within the high satisfaction range (4–5 points = high satisfaction). In corporate survey results measures were further
introduced for the three items with the lowest scores: adjustments are in line with employee performance and position requirements.The corporate remuneration management strictly follows compliance standards to clearly stipulate that employee salaries shall not be
External Assignment Intentions Remuneration Matching Receive Commendations lower than the local minimum wage standard and the salaries shall be paid on time and in full. For employees involved in negotiated
termination the economic compensation is strictly implemented in accordance with the Labor Contract Law. In addition the Company
*Refine the logistical support for the externally *Constantly conduct external *Guide managers at all levels to further according to the industry market remuneration levels and corporate operating conditions conducts internal and external remuneration
assigned personnel to reduce their concerns (local and competitors) improve their management skills and attach
regarding daily life. corporate remuneration importance to the application of "immaterial alignment every year to ensure the market competitiveness and internal fairness of the remuneration system enabling employees to
*The assignees arrange mentors to guide the alignment and optimize the incentives" to promptly recognize and praise share the corporate development achievements.externally assigned personnel helping them better incentive mechanism based the performance of subordinates.adapt to the new job requirements and integrate on the alignment result. *Attach importance to the spiritual incentives
into the new environment. *Constantly promote equity for the senior management team and refine
*After the external assignment make reasonable incentive programs to corporate honor incentive system construction Performance Management
arrangements based on the employee’s promote the mutual growth to promptly recognize the work performance of
performance and actual situation and guide of the Company and its senior management. The Company has established a sound performance management system which is goal-oriented to promote the improvement of
outstanding employees to achieve further career employees. *Constantly implement the psychological
development after the external assignment. care and guidance program for the senior organizational and individual performance via systematic performance assessment. Moreover the Company has formulated the
management team helping them enter the Performance Management System and adopted various assessment methods such as BSC (Balanced Scorecard) KPI (Key Performance
management work with a better state. Indicators) PBC (Personal Business Commitment) and 360-degree assessment ensuring the comprehensiveness and fairness of
performance evaluation.
84 85Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
The corporate performance management covers the employees at all levels and all regular employees are required to participate in Care and Welfare
performance assessment from the moment they become regular staff. Moreover the assessment cycle covers monthly quarterly semi-
annual and annual periods and different job characteristics are used to formulate differentiated assessment standards. Furthermore The Company offers excellent welfare treatment to all employees including but not limited to social insurance welfare leave holiday
during the assessment process the Company encourages the managers and employees to take performance interviews analyzing welfare and a wide range of cultural and sports activities which helps enrich the cultural life of employees to enhance their sense of
performance results and clarifying improvement directions so as to enhance employees’ work capabilities and career development. gain and happiness.Besides the assessment results not only affect the distribution of performance bonuses but are also closely linked to promotions salary
adjustments merit awards and training needs. Noticeably the final assessment results for management positions are also linked to the
organizational performance of the Company and the department to ensure the scientificity and strategic consistency of the assessment.In addition the Company encourages employees to raise objections to the assessment process and results and has established a Basic social insurance Employee cafeteria
performance appeal mechanism so employees may provide feedback to their supervisors human resources department or corporate
management team ensuring the fairness of the assessment.Housing provident fund Employee gym
Employee Incentives Employee’s physical examination
Enterprise annuity
The Company adheres to the concept of "priority given to value creators" to establish an objective fair and scientific value evaluation Birthday welfares
mechanism ensuring that corporate resources and development opportunities are prioritized towards high-performance employees.Commercial insurance Regular Characteristic
Moreover the Company conducts the full-process management on the performance management system to achieve online operation Welfares Welfares Insurance for overseas employees
on all links such as the formulation of target responsibility agreements performance evaluation performance interviews performance
feedback and appeals improving management transparency. Paid leave
Labor union visits
To enhance the incentive effects the Company has established a General Manager’s bonus fund rewarding advanced groups
outstanding individuals outstanding contributors and personnel from functional departments. Meanwhile the Company constantly Special subsidies Spring Rain Fund
optimizes the performance assessment mechanism and implements differentiated assessments for different business modes
ensuring that the assessment indicators are effectively connected with strategic tasks. In recent years the Company has optimized the Legal holiday welfares etc. Employee’s psychological assistance
performance allocation mechanism via external alignment and internal review and clarified the assessment boundaries to empower program etc.each business unit to flexibly use assessment tools promoting constant team growth.Corporate Welfare System
Training & certification Encourage employees to actively participate in various job skill certifications at the national
expense reimbursement provincial municipal and industry levels.To enhance employees’ sense of belonging the Company has been vigorously creating the "family culture" conducting various employee
Employee learning growth Encourage employees to utilize internal and external training resources to enhance their knowledge activities such as home visits and open days for families during traditional festivals like the Spring Festival and Mid-Autumn Festival so
award of corporate business and management. as to maintain harmonious and stable employee relations. In terms of hardware facilities the Company actively listens to employees’
General Manager’s bonus demands and optimizes the working environment. It has successively organized improvements to the tea room replaced water It is used for rewarding annual advanced teams and individuals year-end bonuses for functional
fund personnel and rewarding outstanding contributors which can encourage work enthusiasm while purification equipment added multi-functional coffee machines opened the employee reading room the mother-and-baby room and
providing reasonable rewards to high-performance employees. beautified the office environment creating a harmonious and warm workplace where employees can feel corporate greetings and care.Combine the interests of shareholders the Company and employees to stimulate the entrepreneurial In 2024 in response to the demands of the majority of employees the Company newly implemented parental leave to meet the Equity incentive
enthusiasm of the management team. parenting needs of employees raising children aged under 3 helping employees balance work and family life to alleviate their concerns.Employee Incentive Mechanism
Case Implement Equity Incentive to Share Development Achievements with Employees Case Courageously Combat Against High Temperatures to Implement Heat Prevention and Cooling Service
Security Work
To enable employees to better share the development achievements of the Company and achieve the common development
of individuals and the organization the Company launched two equity incentive programs in late 2020 and mid-2022 and the The heat prevention and cooling service work in 2024 lasted for a long time and the temperatures above 32℃ maintained
incentive targets covered the core management personnel of the Company and the core management team of its subsidiaries for 71 days posing a severe challenge to the front line of production. Under the high temperature difficulties all subordinate
highlighting "high incentives and high requirements". The total incentive amount accounted for nearly 8% of the total share units of the Company actively carried out high temperature relief activities. Xiangyu SOE promptly adjusted the quantity and
capital and the incentive targets included over 1000 core management personnel and front-line business team members. variety of cooling supplies distributing 11000 buckets of plum syrup 173500 bottles of mineral water/salt soda water and
It was the first state-owned enterprise in Fujian Province to launch a composite equity incentive program of "stock options + 123200 pieces of ice rod and the adequate logistical support alleviated the impact of high temperatures to reduce the risk of
restricted stocks" taking the first step in building a long-term incentive mechanism. heatstroke ensuring work safety and production stability.
86 87Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Cultural and Sports Activities
Sports Interest Activities
The Company advocates the concept of "happy work and healthy living" to systematically promote the construction of a happy Xiangyu
home atmosphere and carries out various cultural and sports activities to drive all employees to unite and reach a consensus on
development injecting cultural soft power into corporate’s high-quality development. In 2024 the Company focused on caring for
employees and held a series of cultural activities around important festivals such as the Lantern Festival Women’s Day Children’s
Day and Mid-Autumn Festival and carried out the "Yu See Beauty" series of cultural activities to enhance the corporate cohesion and
centripetal force; it also coordinated to erect a cultural cultivation platform for promoting the establishment of employee interest clubs
such as Tai Chi basketball table tennis badminton football and foreign language which promotes the organizational integration and
the vitality of teams transforming the corporate culture into a vivid practice that enhances employees’ sense of belonging and boosts
team cohesion.Case "Yu See Beauty Join Spring Date - Pay Tribute to Remarkable Women" Women’s Day Series Activities
"Chase Dreams in Youth Dominate in Green Field" "Cyan Emerges from Basket Burning Power is
On 8 March Women’s Day in 2024 the Company held a series of funny activities under the theme of "Yu See Beauty Join Spring Football Competition Unstoppable" Basketball Competition
Date". The corporate headquarters organized flower art DIY and invited employees to watch the "Versatile Women" talk show
to convey the voices of women; and several subordinate companies used "flowers" as the medium to send festival greetings to
female employees and held activities including romantic rowboats tea brewing and DIY baking allowing employees to release
their tenderness and creativity during their busy work so as to encourage female employees to be unique themselves."Win with Love for Table Tennis" Table Tennis Competition "Exercise Ignites Vitality; Unity Creates Future" Badminton
Competition
Talk Show Activity Flower Arrangement Activity
Festival Entertainment Activities
Case "Spark Legacy" Cultural Lecture Series ActivitiesSeries Activities
In order to make the cultural achievements of Xiangyu effective and
applicable and to promote deep and practical implementation of cultural
practices since 2023 the Company has actively carried out the "Spark
Legacy" cultural lecture series activities. The outstanding employees from
the corporate headquarters and various investment enterprises engaged in
intense debates on the topics demonstrating the innovative thinking and the
youthful power of eloquent speech. "Yu Together with You Yu See Beauty" "Yu See Beauty All Things Flourish under "Yu See Beauty Full Moon and Happy Children’s Day Activity Dragon" Spring Festival Activity Love" Mid-Autumn Festival Activity
"Environmental Protection and Low-
Carbon" Theme Debate
88 89Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Training and Development Employee Training Management
To enhance the employee training management the Company has formulated regulations such as the Employee Training Management
The Company conducts talent selection and training based on capabilities and performance and it creates channels and platforms System and the Internal Trainer Management Regulations to clearly define the responsibilities and authorities of each department
for the growth of value creators establishing a systematic and multi-level talent cultivation system to promote the common growth of regarding training. The Company closely focuses on the two major business priorities: corporate business transformation and
the enterprise and its employees. The Company adheres to the assessment principle of "morality ability diligence performance and management efficiency enhancement and concentrates on three main lines: business transformation empowerment management
integrity" and it also strives to provide more opportunities for those who take responsibility and achieve results in the front line special empowerment and youth talent cultivation to innovate the training methods and approaches integrating training with actual operations
positions and strategic projects. to create the organizational capabilities required to win the market.Talent Cultivation System Business Team Training
The Company has established a "Three Verticals and Three Horizontals" talent cultivation system covering three levels: senior medium 1.Organize the Y.E.S International Elite Class
and junior and it also provides customized cultivation for employees in the new tenure current tenure and transition period. The focus Training to select young backbones with potential
is on the cultivation of management trainees and three years are taken as a cycle to cultivate a young middle-level team with high for overseas business development and provide
internal drive and competitive awareness via the competition mechanism job rotation training and special projects. Moreover the training and empowerment in overseas business
construction of key position teams is combined with talent inventory personal development plans and mentorship to optimize the age development methodologies and skills. Starting
structure of the management team and the management and business talents with comprehensive capabilities are cultivated via cross- from the corporate’s main business sectors and
departmental job rotation and overseas training. driven by real business cases in target markets
integrate training with actual operations to
inspire international thinking among trainees and
Senior Management cultivate business expansion capabilities.Group’s new senior Corporate management training class
management training (Group)
International Elite Class Training
Take orientation:
Entrepreneur spirit/ Senior management rotation training class Advanced management
corporate culture/strategic training class 2.Provide empowerment for key overseas (Group)
thinking/comprehensive (Group) market regions ( focusing on key regions
planning/innovation Lingxiang Program
and transformation/ (New senior management such as Africa and Southeast Asia) to offer
organizational building/ training) Special training for business & functional intelligence information and methodologies
leadership senior management
Capacity enhancement training such as industry chain maps market analysis
and opportunity exploration and risk avoidance
to the international business team. Root in the
market to enhance the business team’s ability to
Middle-level Digitalization training Business manager class class conquer international markets.Financial manager Operation manager Youth cadre training
class class class
(Group)
Special class of risk Logistics manager
control class Empowerment for Key Overseas Market Regions
Understand method:
Enterprising spirit/ Qixiang Program Strategic investment Administrative 3.Conduct industry transformation and upgrade
global vision/team (New middle-level training) class management class
building/communication workshops of senior management of business Board secretary Safety management
and coordination/risk training class class inviting divisional General Managers of the main
management
Human resources Equipment and engineering Feixiang Program
class management class (Senior management
product sectors to share aligned research case
echelon training) studies and identify and grasp breakthrough
Middle-level development class directions from an industrial chain perspective
(Group)
inspiring transformation thinking of senior
management of business.Grassroots-level Chenxiang Program
(Campus recruitment
new employees and Job qualification series training +
Chixiang Program
position examination (Grassroots-level management trainees) backbone training) Transformation and Upgrade Workshops of Senior Management of Business
Optimize technique: Cultural Integration training for
integration/execution socially recruited new 4.Organize the first Supply Chain Business Innovation Competition to upgrade the talent cultivation mode. With the goal of two-
ability/professional quality/ employees year actual business transformation and upgrade conduct practical business method empowerment training and provide excellent
job competence Current tenure Transition period
New tenure business study partners to carry out guidance and exchanges at the same time. Integrate training with actual operations to
inspire business thinking cultivating talents who understand the industrial chain and supply chain to contribute to the business
breakthrough."Three Horizontals and Three Verticals" Talent Cultivation and Training System
90 91Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Training for Middle and Senior Management
Case "Xiangyu Cloud Classroom" Online Learning Platform
1. Organize training for new senior management to inspire them to successfully undertake role transitions and emphasize team
management to break the conventional thinking patterns helping new cadres take the first step steadily.To enhance the training and development of employees the Company has established the "Xiangyu Cloud Classroom"
2. Organize comprehensive ability enhancement training for new online learning platform which serves as a centralized repository for general management knowledge of the Company and
middle-level cadres (MTP) to empower 153 individuals laying a an integrated platform for training information and learning management providing convenient functions for various roles
solid foundation for the management of middle-level cadres. such as managers mentors lecturers and learners. The platform’s courses cover multiple modules such as Party building
3. Starting from management reserve positions of domestic culture general capabilities functional specialties management capabilities benchmark learning and system publicity and
and overseas platform companies the aim is to select a group implementation totaling 397 courses. It integrates 20 thematic learning windows such as training management functions
of talents who have a high willingness to be externally assigned internationalization financial management operation management and logistics management effectively improving the
and are committed to growing together with the Company. In situation where "courses could only be pushed manually by training organizers or searched for independently resulting in
the short term the talent inventory and internal competition are scattered acquisition of course information" so that the training and learning are more convenient.used to quickly identify the candidates; in the middle and long
term conduct 2 to 3 years of training empowerment job rotation
practice in different positions and training in the positions at Comprehensive Ability Enhancement Training for Middle-level
corporate headquarters or platform companies to reserve a Cadres
platform management reserve team ensuring a continuous
talent echelon.Management Trainee Cultivation and Training
Picture of Xiangyu Cloud Classroom
1. Upgrade the management trainee training mode to enhance the daily summaries and optimization thinking of management
trainees. Conduct management trainee empowerment training based on the common needs of management trainees and add a
topic presentation session for management trainees to enhance the daily analytical summaries and work optimization thinking of
management trainees.
2. Organize mentor empowerment workshops to help management trainee mentors master scientific communication and guidance Employee Promotion and Development
methods and systematically compile an exclusive growth manual for mentors to integrate the required knowledge and skills as well
as guidance techniques into daily-used items thereby promoting the growth of young talents better. Regarding employee promotion and development the Company has formulated the Guidelines for the Management of Organizational
and Position Class Systems to establish a dual-channel promotion mechanism of "profession and management" clearly defining the
3. Conduct special empowerment for new employees’ induction standards for talent selection evaluation and appointment. Moreover the Company constantly optimizes the career development paths
focusing on basic knowledge of the industry such as cultural of employees matching job requirements and optimizing team configuration to build the thousand-person echelon talent pool and it
integration career growth industry overview business model constructs a dynamic adjustment mechanism to match business development needs creating a diversified talent utilization mode.and logistics resources for empowerment. The course introduces
a practical sand table of supply chain so trainees can simulate
participation and experience the main links of supply chain
operation enhancing their understanding and comprehension of Define the promotion mechanism Smooth the promotion channels
the business mode.Management Trainee Training
Clarify the rights and responsibilities relationship Provide employees with dual promotion channels
among units at all levels in the organization and fully of profession and management to broaden the
grant authority to each sector company to clearly define development paths for employees and achieve the
the division of management rights and responsibilities matching between individuals and positions via pre-
During the reporting period for various aspects such as personnel appointment work analysis and personnel assessment before
56735 & dismissal remuneration & performance and personnel allocation. Conduct dynamic optimization the total training hours for corporate employees reached hours production & operation further supplemented by the and allocation of personnel and integrate methods and
with an average of 1 6 . 2 4 hours per person; assessment of team building and talent cultivation approaches such as transfer promotion demotion and
and the Company conducted a total of 2 8 7 training sessions throughout the year indicators to provide basic security for the appointment rotation to constantly stimulate the vitality of the talent
3 and management of ta lents in each unit and team.involving 4 9 3 participants and the employee training coverage rate reached 4 4 % . department.
Talent Selection Mechanism
92 93Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Health and Safety Safety Production Management
The Company has always adhered to the core HSE value concept of "Safety First Environment Paramount People-oriented Equipment In terms of safety production the Company has established a "1+3+X" HSE management system framework. It has formulated system
Intact" and has taken the policy of "People Orientation Prevention First Risk Identification and Pre-control Create a Harmonious documents such as the Health Safety and Environment Management Manual the HSE Responsibility System and Target Management
Safety Environment and Take a Sustainable Development Path" to pursue the strategic goal of "No Accident No Pollution No Loss Procedures and the Occupational Health and Safety and Environment Education and Training Management Procedures. Moreover it
Establish a Respected Image of a Supply Chain Investment & Operation Service Provider". The Company focuses on two main work has established a Safety Production Committee to deepen the integration of the system and enhance the responsibility implementation
lines: implementing the safety management system effectively and enhancing the safety management security capabilities and it also ensuring the effective implementation of all policies and measures and it conducts constant policy updates as well as the continuous
adheres to the principle of "Management Training Equipment and Shift" to ensure that the safety production responsibility is effectively improvement and solidification by organizations at various levels constantly paying attention to and safeguarding the occupational
implemented at all levels. Meanwhile based on the principle of "not lower than the safety production target indicators of the previous health and safety of employees. In addition the Company constantly enhances the emergency management establishing an Emergency
year to reflect constant improvement" the Company formulated the 2024 occupational health and safety work goals ensuring the Management Committee and formulating the Emergency Management and Accident/Incident Management Procedures and the Overall
constant improvement of safety performance. Emergency Plan for Emergencies and regularly conducts safety emergency drills to test the feasibility of the corporate emergency plans
and the actual operational skills of employees laying a solid foundation for building a safer working environment.
2024 Goals Completion Status
The General Manager serves as the head with other members serving as deputy
Safety heads and this Committee is composed of the director deputy directors and
Production managers of functional departments.Committee
No serious or fatal personal injury accident No work-related injury or death occurred in the Company with the
with the rate of minor injuries controlled within It is responsible for formulating/revising the medium- and long-term corporate
3‰ rate of minor injuries controlled within 1‰ Safety Production HSE development planning and formulating annual HSE goals and planning.
Committee Office (Safety It also supervises the decomposition of annual HSE work goals and indicators
Supervision Department) of subordinate subsidiaries and implements the performance assessment.No fire-related accident and the intact rate of fire-fighting facilities
No fire-related accident reached over 98% According to regulatory requirements and the division of
responsibilities they formulate the HSE responsibility list for all
The Company and Its Subordinate employees the performance list and the individual safety action
No group incident occurred and social stability work was Subsidiaries plan table and decompose layer by layer according to HSE annual
No incident involving social stability implemented effectively goals.Safety Production Management Framework
No incident causing food poisoning involving No food poisoning incident occurred and the qualification rate of
more than 3 people food hygiene inspections in the cafeteria was 100% Xiangyu Aluwin
Establish a sound safety management system appointing a dedicated safety manager and enhancing the implementation of
No major economic loss accident occurred and all types of safety regulations while organizing regular safety inspections and hazard screenings and establishing a punishment mechanism.No accident resulting in direct economic
losses exceeding CNY 1 million accident losses were within the budget range According to the production and operation situation hold monthly safety education and publicity meetings to enhance safety
prevention capabilities; for the operation of hazardous products strictly manage the business qualifications scope of the
operating units and the professional qualifications of the employees in accordance with management requirements and organize
C o m p l e t i o n r a te o f H S E c o m p l i a n c e All HSE compliance rectification measures were completed on time regular qualification examinations to ensure that employees hold valid certificates for their positions.rectification was 100% and the completion rate of rectification reached 100%
Xiangyu SOE
HSE system training covered all employees and the awareness and Conduct safety publicity education and training precisely to further promote the creation of standardized safety management
HSE system publicity and implementation were implementation of the HSE system by employees were significantly shifts and constantly optimize the "dual system" construction to strictly enforce the permission system for hazardous operations
effective
improved further improving the safety environment at the work site.Xiangming Oils
Set the 2024 annual occupational health and safety work goals and specifically manage relevant indicators such as work-related
2024 Occupational Health and Safety Management Goals injury accidents accident hazard rectification rate occupational diseases occupational health examination rate and safety
training education effectively ensuring the occupational health and production safety of corporate employees.Highlighted Measures for Safety Production Management in Each Subsidiary
94 95Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
The Company attaches great importance to the construction of safety culture to cultivate the "soft power" for the corporate safe Occupational Health Management
development. The Company regularly holds offline training sessions for safety backbones and conducts safety examination preparation
lectures to constantly enhance the safety professional quality of employees. According to the requirements of the Work Program for The Company attaches great importance to the physical and mental health of its
Special Inspection on Safety Production and Supervision on Construction of Safety Management Standardization Shifts of Xiangyu employees and implements care and protection measures effectively. Every year the During the reporting period
Group it constantly promotes the supervision work of safety management standardization shifts creating 4 outstanding shifts such as Company provides free physical examinations of health for all employees and insures
Rizhao Xiangming Oils Refining Shift and Suihua Xiangyu Jingu Agricultural Machinery Repair Shift. the corporate coverage rate them with commercial insurance. Moreover it also participates in the municipal workers’
medical mutual assistance security program and issues membership service cards of physical examinations on
for labor union members to raise the level of medical welfare security. In 2024 the occupational disease risk
Company further optimized the physical examination welfare raising the standards and positions was 1 0 0 % .adding special examinations for cardiovascular and cerebrovascular diseases and it
also docked with professional hospitals to provide interpretation of physical examination
Shift safety standardization Good operation and Safety culture reports by deputy director-level physicians meeting the diverse health needs of A total of 5 3 2 employees
construction accident warning construction planning employees. participated in physical
*Formulate the implementation *Promote excellent achievements *Prepare the safety culture In terms of occupational disease prevention and control the Company strictly complies examinations of occupational
advice for shift safety of good operation practices construction based on the with laws and regulations such as the Law on Prevention and Control of Occupational disease and no case related to
standardization construction corporate culture Diseases and the Regulations on Occupational Health Management in Workplaces occupational diseases was found.*Implement accident and incident and formulates the Occupational Health Management System to assess occupational
*Select the pilot for shift safety warning education *Plan to train on distinctive safety disease hazard factors. Moreover it provides standard labor protection supplies for risk
standardization construction culture concepts positions such as dust collectors mufflers and other protective facilities and conducts
*Implement positive incentives and regular maintenance to enhance operation protection. In addition the Company also
*Recommend the benchmark negative notifications *Advance visual management of provides pre-job on-job and off-job physical examinations for employees at risk of
for shift safety standardization safety occupational diseases and establishes "one file for one person" occupational health
construction monitoring archives comprehensively ensuring the occupational safety of employees.Safety Culture Construction To alleviate employees’ work pressure the Company launched the EAP (Employee Assistance Program) in 2020 providing 24-hour
psychological consultation hotline group guidance one-on-one consultation and mental health lectures and has helped over 200
employees alleviate psychological stress. In 2024 the Company relied on the EAP project of Xiangyu Group to constantly provide unified
mental health support further enhancing the employee’s psychological care system.During the reporting period
the subsidiaries of the Company conducted 2 0 6 9 8 hours of training on occupational health and production safety
and held 2 0 8 various safety emergency drills;
the coverage rate of employee work-related injury insurance reached 1 0 0 % ;
and the input on safety production liability insurance exceeded C N Y 3 0 0 0 0 .The Company has installed AED first-aid equipment on the office floor and has also
assigned professional first-aiders to ensure the safety of employees’ lives.Safety Production Training Emergency Supplies Reserve Emergency Drill Site
96 97Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Take Responsibility Share Development Achievements
Case "Chain" Enjoying Opportunities to Present at the National Supply Chain Innovation Exhibition
Xiamen Xiangyu is committed to building a sustainable development ecosystem that benefits all parties. While expanding its
In September 2024 the 24th China International Fair for Investment & Trade was held in
international vision deepening the integration of industry-university -research and promoting industry progress it always keeps in mind Xiamen. As a benchmark enterprise in the industry the Company was invited to participate
its state-owned enterprise mission so it integrates its development with the national rural revitalization strategy to promote agricultural in the initially established supply chain innovation exhibition area and highlighted the
economic development forming a development model featured by virtuous cycle of commercial value and social value. practical achievements of the integration and innovation of supply chain and industrial
chain attracting guests from home and abroad to stop and exchange ideas. During the
exhibition Li Gang the Director of the Department of Circulation Development of the
Ministry of Commerce visited our exhibition stand and highly affirmed our achievements
in promoting green development and digital smart innovation. The Company won the first
prize in the enterprise group competition and was awarded the "Best Organization Award"
Industry Exchange by virtue of our comprehensive strength. This event effectively helped the Company
deepen global resource channel docking injecting new momentum for promoting high- Supply Chain Innovation Exhibition
Open cooperation is a key factor in promoting innovation and common development. The Company conducts extensive cooperation and quality development of the industrial chain and supply chain.exchanges to gather professional forces from various fields sharing excellent experiences and exchanging technical achievements and
jointly explores new opportunities in the supply chain industry with industry-related parties working together to promote innovation and Xiamen Xiangyu Presented in the China International Supply Chain Expo to Promote Global Supply
Case
progress in the industry. Chain Cooperation
In November 2024 the 2nd China International Supply Chain Expo was held in Beijing.The Company responded positively to the call for global supply chain cooperation and
showcased more diversified digitalized and green supply chain innovation solutions.During the reporting period the Company participated in 4 0 industry forums and technical exchange This Expo attracted over 600 domestic and foreign enterprises to participate and our
exhibition stand incorporated "Digital Smart Blue" and "Xiangyu Red" highlighting our
meetings including the China International Supply Chain Expo the China International Import Expo
corporate culture spirit. On the first day of the Expo our exhibition stand attracted a large
the China International Fair for Investment & Trade and the Forum on China-Africa Cooperation. number of overseas and domestic merchants for visits and negotiations. The Company
displayed the innovative practices in the integration between digital smart technology and
industries to promote the supply chain upgrades initiating a new dialogue with global
partners. The Company will constantly accelerate its global layout to deepen industry The 2nd China International Supply
research and promote smart and sustainable supply chain development jointly building Chain Expo
a more resilient efficient and dynamic global supply chain.Case Organize Supply Chain Summit to Focus on New Quality Productivity of Supply Chain
The Company Presented in the China International Import Expo to Promote Global Supply Chain
Case Development
In September 2024 the Smart Chain New Journey
Supply Chain Summit hosted by Xiangyu Group and In November 2024 the 7th China International Import Expo was held in Shanghai and the Company once again participated in
organized by the Company was successfully held this Expo with its supply chain innovation solutions under the new "Dual Circulation" development pattern. The corporate leader
at the Xiamen International Convention Center. This delivered a keynote speech at the "High-Quality Development Exchange Meeting of Modern Circulation Enterprises" sharing
Summit as a sub-forum of the 2024 Supply Chain corporate experiences in promoting the "Belt and Road" construction and exploring international markets. During the Expo the
Cooperation Innovation Conference organized by the Company signed a strategic cooperation agreement of USD 260 million with a West African titanium ore enterprise promoting
Xiamen Municipal Government was themed "Green the construction of a global service system for the titanium industry chain. The Company will constantly deepen international
Smart Chain Moving towards New Directions" gathering cooperation to promote the modernization of the industrial chain and to drive global market prosperity.over 200 people including experts in supply chain and
representatives for enterprises & financial institutions
from both domestic and international sources and they
jointly explored the trends of supply chain digitalization
and low-carbon transformation. This Summit conducted
deep discussions around the new quality productivity of
supply chain and the Chairman of the Company stated
that the Company would drive the upgrade of supply "Green Smart Chain Moving towards New
chain services via digitalization and intelligence working Directions" Summit Venue
together with global partners to build an efficient green Corporate Leader Delivered a Speech at the "High-Quality Strategic Cooperation Signing at the 7th China
and sustainable supply chain ecosystem. Development Exchange Meeting of Modern Circulation Enterprises" International Import Expo
98 99Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Release
Time Standard Name
Standard
Category
Case Participate in the China-South Africa Economic and Trade Forum to Deepen the Layout in Africa
2019.2 Technical Specification for Green-Design Product Assessment – Iron Concentrate Comes from Iron Ore Tailings Group Standard
In September 2024 the Company was invited to attend the China-
South Africa Economic and Trade Forum and the corporate Party 2022.7 Basic Requirements of Digital Warehouse Industry Standard
Committee members Discipline Inspection Commissioner and
Deputy General Manager were invited to attend and deliver a speech. 2022.7 Evaluation Specification of Digital Warehouse Industry Standard
In recent years the Company has actively explored the markets in 2023.1 Classification and Evaluation Indicators of Supply Chain Financial Service Enterprises Group Standard
South Africa and Africa. In 2023 the volume of business in Africa
exceeded 12 million tons covering fields such as metal minerals and 2023.4 Requirements for Transaction Matching Services on Internet Road Freight Platforms Group Standard
agricultural products involving multiple African countries. To deepen
the regional layout the Company will establish its first African local 2023.8 Evaluation Index for Green Logistics of Logistics Service Provider Industry Standard
company in Johannesburg serving as a "bridgehead" for supply Greenhouse Gas Emission Accounting and Reporting Requirements for Logistics
chain services to promote the deep integration between regional 2023.8 Enterprises Industry Standard
resources and business. In the future the Company will constantly
enhance the economic and trade cooperation with South Africa and 2023.9 Ships and Marine Technology - Performance Test Procedures for LNG Fuel Gas Supply Systems (FGSS) National Standard
African countries and expand higher-level and broader development
opportunities jointly promoting prosperity and progress. Invited to Participate in the Thematic Discussion 2023.12 Basic Requirements of Digital Steel Warehouse Group Standard
2023.12 Basic Requirements of Digital Coal Warehouse Group Standard
Participated in the China (Fujian) - United States Economic and Trade Cooperation Exchange
Case 2024.1 Supply Chain Finance Group Standard Group StandardConference and Successfully Signed a Contract
2024.4 Evaluation Specification for Digital Level of Enterprise Supply Chain Group Standard
In March 2024 Xiangyu New Energy participated in the China
(Fujian) - United States Economic and Trade Cooperation Exchange Standards Participated by the Company in Formulation
Conference in Los Angeles Portland and Honolulu of United States
and signed a strategic cooperation agreement with the American Social Contribution
photovoltaic module manufacturer SEG Solar Inc. to conduct deep
cooperation around photovoltaic products such as cells and modules. The Company has always been committed to fulfilling its social
This signing will fully leverage the advantages of both parties in the responsibilities to actively promote the development of public
supply chain and manufacturing sector and strengthen the synergy welfare undertakings and it encourages employees to pay During the reporting period the Company
of the green energy industrial chain promoting global sustainable attention to social issues and actively participate in various conducted 6 2 employee volunteer
development. The Company will constantly expand international volunteer activities forming a positive social responsibility culture.market to deepen its global supply chain layout and contribute to activities with 2 4 8 participants in total.The Company regularly organizes the public welfare training and
the development of the new energy industry to promote industry practical activities to stimulate the enthusiasm of its employees
exchanges and cooperation. China (Fujian) - United States Economic and Trade for public welfare and enhance their awareness of social service
Cooperation Exchange Conference and the Company takes practical actions to contribute to society
demonstrating the corporate sense of responsibility.The Company actively leverages its advantageous position in the industry to lead the development of industry norms and participates
in the formulation of national industry and group standards to contribute its efforts to the technological progress and industrial Case Clean Home for Community and Street Cleanup Activities
upgrade of the industry. The two standards whose formulating it participated in namely Basic Requirements of Digital Warehouse and
the Evaluation Specification of Digital Warehouse issued by the National Development and Reform Commission provide important
guidance and reference for industry development which further expands our influence in the industry helping promote the industry The Company organizes its employees as volunteers to conduct regular community
transformation towards digitalization and intelligence. clean-up activities removing garbage from the streets and clearing illegal
advertisements and maintains and beautifies the public facilities to take practical
actions for supporting the improvement of the urban environment. The volunteers not
only enhance the environmental awareness of community residents during the clean-
As of the end of the reporting period up process but also convey the concept of green living via interaction with community
the Company has participated in the formulation of 2 national standards 4 industry standards residents increasing public attention to environmental protection. This activity not only
and 7 group standards. improves the urban appearance but also promotes a positive interaction between the
Company and the community enabling employees to understand the importance of
Volunteer Service Team
social responsibility more deeply.
100 101Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Rural Revitalization
Case Care for Special Groups to Regularly Visit the Groups in Difficulties
Xiamen Xiangyu actively fulfills the responsibilities of a state-owned enterprise and explores new mode for rural revitalization.Starting from establishing a long-term assistance mechanism the Company fully leverages its own industrial advantages to increase
The Company has been constantly concerned about the groups in difficulties in the community. During the Spring Festival and its assistance efforts and helps promote the coordinated development of the regional economy and society contributing to rural
the August 1st Army Day every year it organizes visit activities to send care and gifts to troops and officers of military-civilian revitalization. Moreover the Company strictly implements the decisions and deployments of the Party Central Committee to thoroughly
joint construction units; during the Double Ninth Festival it visits the elderly and Party members in difficulties in the community carry out the requirements of the "14th Five-Year Plan" for Promoting Agricultural and Rural Modernization and the Company
providing them with living support and spiritual encouragement; during the New Year’s Day the Spring Festival and the "July promotes a stable "blood-making" assistance model to support the sustainable development of rural industries according to its main
1st" holiday it visits the paired families in difficulties sending them necessary daily necessities and expressing corporate care. responsibilities and main business.
The Company conducts these constant public welfare actions to actively fulfill social responsibilities demonstrating its care and
support for the groups in difficulties.During the reporting period the Company established a paired assistance relationship with
Guoxi Village and Houpu Community. It conducted precise assistance in areas such as rural
economy improvement of people’s livelihood and talent cultivation and a total of 1 1 exchange
and visit activities were organized covering symposiums caring visits and children’s care which
demonstrated its commitment to rural revitalization via practical actions.Organizational Revitalization
Enhance Leadership to Improve "Organizational Capacity"
Every year on the Double Ninth Festival the Company went Every New Year’s Day and Spring Festival and on "July 1st"
to the jointly-built community to conduct visits for elderly the Company went to the paired families in difficulties for Attaching great importance to the rural revitalization the Company has effectively raised its political stance and it has innovated and
Party members and those in difficulties caring visits. refined the mechanism for providing paired assistance according to the overall deployment of related work. Moreover the Company
has held multiple special meetings with the paired assistance villages and the village work teams to organize on-site surveys for
AED Heart Emergency Rescue Market Volunteer Service to Enhance Public First-aid Skills deeply analyzing the current situation of rural development and assisted in formulating feasible development planning to provide Case
long-term and stable support to the assisted villages. In addition the Company has conducted multi-dimensional collaboration such
as joint Party building resource sharing and policy publicity to constantly consolidate the assistance system providing powerful
In November 2024 Xiangyu Aluwin actively responded to corporate’s "11.28 Public Welfare Day" initiative to organize the AED support for rural economic development.Heart Emergency Rescue Market Volunteer Service activity providing first-aid knowledge training and guidance to the public.The on-site explanations and practical operation drills were used to popularize AED usage method and cardiopulmonary
resuscitation skills enhancing the public’s emergency rescue ability to respond to sudden cardiac arrest incidents. This activity
effectively promoted the dissemination of first-aid knowledge and enhanced public safety awareness in society contributing to
the "Kind Xiamen" public welfare construction.AED Heart Emergency Rescue Market Volunteer Service
Rural Joint Party Class
102 103Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Paired Assistance to Erect the "Heart-connection Bridge" Agricultural Revitalization
The Company actively responds to the rural revitalization initiative and the national cereal strategy to base on the actual situation of
Adhering to the principle of "alleviating poverty
the agricultural industry and it has established seven modern warehousing and logistics centers creating a comprehensive service
by first addressing the spirit of the people" the
platform for full industrial chain of cereal covering pre-production mid-production post-production and processing. Moreover it utilizes
Company deeply understands the actual needs of
digital mart technology to empower traditional agriculture to erect the platform for promoting rural revitalization and comprehensively
the villagers to provide targeted support regarding
integrates the Internet with traditional agricultural production supply and sales to improve agricultural resource allocation production
issues such as employment education and
efficiency product quality market expansion and comprehensive benefits which truly solves the practical problems in traditional
medical care that are of concern to the people.agriculture contributing to implementation of the rural revitalization strategy.During important periods such as the New Year’s
Day Spring Festival and "July 1st" the Company
will organize its Party cadres to visit 10 paired Large-scale planting to improve agricultural Smart warehousing to optimize Efficient circulation to facilitate the
households in the assisted villages where they productivity cereal circulation market expansion of agricultural
products
communicated face-to-face to publicize the Party’s
policies benefiting the farmers and encouraged *Promote the standardization *Create a cereal warehousing *Establish a cereal circulation
the villagers to establish a spirit of self-reliance and scientificization and professionalization alliance to digitally renovate industry alliance to promote the
hard work for prosperity. In addition the Company of agriculture and integrate agricultural its own warehousing facilities cost reduction and efficiency
also actively promotes training programs and production service resources to establish achieving smart management increase of enterprises of
employment guidance providing practical training "July 1st" Visit to Guoxi Village a cereal planting industry alliance for and build a warehouse-point deep processing of cereal and
courses for villagers with entrepreneurial intentions enhancing the cooperation loyalty of alliance platform via technologies feed processing and optimize
to help them expand their income channels. farmers stabilizing and expanding the such as the Internet of Things the supply-demand matching
cereal source. cloud computing and blockchain mechanism to and achieve a
Promotion by Assistance to Build the "Road to Prosperity" *Under the digital empowerment the to integrate social warehouse- supply mode of "cereal available at
Company has created an agricultural points into digital warehouses any time special product supply
We have fully leveraged our advantages in the industrial chain to drive the modernization of agriculture helping enhance the quality industry-level supply chain service achieving standardization of high-quality and reasonable
and efficiency of the village’s collective economy. The Corporate Party Committee strictly implemented the requirements of the platform and has launched the "Xingxing cereal products intelligence price". The Company also provides
"three-party joint Party building agreement" creating a collaborative relationship featuring "mutual promotion of Party organization Xiangnong" APP to provide farmers with of process and optimization supporting services of supply
construction interactive learning of Party members and cadres mutual use of Party building activity carriers and mutual help full-process services such as planting of storage to improve overall chain such as logistics and finance
of paired assistance". Moreover the corporate departments such as the Strategic Investment Center and the Supply Chain orders agricultural finance agricultural warehousing efficiency. to reduce costs in each link of the
Management Department formed the assistance working group going to the Guoxi Village for special survey. They conducted on- supplies cereal collection reservations industrial chain improving the
site investigations to understand the development situation of the village committee and held discussions and exchanges with the and logistics transportation raising overall collaborative efficiency of
village’s resident cadres and the village "two committees" team to jointly formulate an industrial assistance plan. In addition the the organizational level of agricultural the entire industrial chain.production.Company also introduced high-quality agricultural projects and they conducted means such as technological empowerment financial
support and brand promotion to help local characteristic agriculture develop achieving a transformation from "blood transfusion
style" assistance to "blood drawing style" assistance. Digital Platforms Facilitate Agricultural Development
In addition the Company coordinates various resources at all stages of planting purchasing and selling to form an agricultural full-chain
ecosystem which ensures national cereal production and farmers’ income from cereal plant contributing to consolidate the "ballast
stone" of national cereal security."Unity in Dream Cooperation for Win-win" to Receive a Thank-you Letter from China Agricultural
Case Reclamation Industry Development Fund
In February 2024 the China Agricultural Reclamation Industry Development
Fund sent a thank-you letter to the Company expressing sincere gratitude for
corporate contributions in supporting the establishment of the national fund in local
regions facilitating rural revitalization fulfilling policy missions and implementing
industrial guidance. In the future the Company will constantly focus on financing
for agriculture to promote digital smart empowerment helping modern agricultural
industries strengthen supply chains and expand capabilities and will strive to build
an agricultural power and jointly create a new picture of rural revitalization.Thank-you Letter
Paired Assistance
104 105Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Key Performance Table
Corporate Governance Indicators
Indicators Unit 2023 2024 Indicators Unit 2023 2024
Number of meetings held by Board of Directors Times 15 15 Number of employees attending digitalization construc-tion-related trainings Person-times 825 1105
Number of management personnel attending digitalization construction-related
Number of meetings held by Board of Supervisors Times 8 8 Person-times 240 176trainings
Number of full-time personnel responsible for corporate information
Number of General Shareholders' Meetings held Times 6 4 Persons 18 21construction at headquarters
Number of meetings held by Audit Committee Times 10 6 Number of major cybersecurity incidents Pieces 0 0
Number of meetings held by Remuneration and Appraisal Committee Times 4 6 Number of confirmed cybersecurity accidents Pieces 0 0
Number of meetings held by Strategy and Sustainable Development Committee Times 1 1 Number of cybersecurity trainings Times 4 4
Number of Board of Directors Persons 9 9 Number of cybersecurity emergency drills Times 1 2
Number of independent directors Persons 3 3 Number of confirmed data leakage accidents Pieces 0 0
Number of female directors Persons 1 1 Note:
1.The digitalization investment was higher due to the peak period of new project construction in 2023 and there was a significant change in digitalization input because of the
optimization & adjustment of supplier structure and the reduction of new projects in 2024.Average tenure of directors Years 3.56 4.51
Average age of directors Years 56.33 55.44
Number of Board of Supervisors Persons 3 3 Employee and Social Indicators
Number of employee supervisors Persons 1 1
Indicators Unit 2023 2024
Number of anti-corruption and anti-bribery trainings Times 15 25
Total number of employees Persons 8565 7929
Number of employees with disabilities Persons 7 7
Economic and Service Indicators
Number of demobilized military employees Persons 74 106
Indicators Unit 2023 2024 By Gender
Operating revenue CNY 100 Million 4590.35 3666.71 Number of male employees Persons 5502 5071
Net profit for shareholders of listed company CNY 100 Million 15.74 14.19 Number of female employees Persons 3063 2858
Tax contribution CNY 100 Million 32.29 32.05 By Age
Investment in R&D CNY 100 Million 1.54 1.17 Number of employees aged 30 and below Persons 3007 2478
Investment in digital construction 1 CNY 10 Thousand 23083 17588 Number of employees aged 31 to 50 Persons 4884 4802
Number of digitalization construction empowerment training activities (sessions) Sessions 40 63 Number of employees aged 51 and above Persons 674 649
106 107Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Indicators Unit 2023 2024 Environmental Indicators
By Region
Indicators Unit 2023 2024
Number of employees working in Chinese mainland Persons 8462 7820
Investment in energy conservation and emission reduction CNY 10 Thousand 675 515
Number of employees working in Hong Kong Macao and Taiwan Persons 10 8
Raw coal consumption volume Tons 23768.91 17583.29
Number of employees working in other countries and regions Persons 93 101
Fuel oil consumption volume Tons 190.29 109.17
By Educational Background
Diesel consumption volume L 12110990.80 10065848.41
Number of employees with doctoral degree Persons 4 7
Gasoline consumption volume L 360421.01 400952.77
Number of employees with master’s degree Persons 796 759
Natural gas consumption volume 1 m3 431369 2451417.17
Number of employees with bachelor’s degree Persons 3941 3932
Steam consumption volume Tons 173202.45 162058.54
Number of employees with junior college or below Persons 3824 3231
Consumption volume of externally purchased power 2 kWh 36232975.20 70518910.06
By Profession
Total water consumption volume 3 m3 170860 211793.03
Percentage of production personnel % 27 30
Water conservation (recycled/reused water) volume m3 16406 27876.00
Percentage of sales personnel % 18 16
Total waste gas emission volume 4 m3 156734937 1139963239.28
Percentage of technical personnel % 3 5
Waste gas particulate matter content 5 mg/m3 90.789 4.25
Percentage of financial personnel % 9 9
5
Percentage of administrative personnel % 16 14 Waste gas nitrogen oxide content mg/m3 443.735 1.26
Percentage of service personnel % 24 23 Waste gas sulfur oxide content
5 mg/m3 367 3.85
Percentage of other personnel % 2 3 Waste gas VOCs emission volume
5 mg/m3 20.1 14.66
Duration of employee trainings Hours 94398 56735 Total wastewater discharge volume m3 55063 96040.00
Average duration of training per employee Hours 22 16.24 Chemical Oxygen Demand (COD) in wastewater mg/L 8.749 123
Investment in safety production CNY 10 Thousand 489 1313 Five-day biochemical oxygen demand of wastewater (BOD5) mg/L 2.039 38.425
Number of employees undergoing occupational disease physical examination Persons 460 532 Suspended solids content of wastewater mg/L 1.66 21
Coverage rate of physical examination of occupational disease risk position % 100 100 Ammonia nitrogen content of wastewater mg/L 0.484 17.85
Number of safety emergency training sessions Sessions 132 384
Total phosphorus content of wastewater mg/L 0.8782 0.548
Number of safety emergency drills Times 89 208
Note:
1.In 2024 Xiangdao Logistics was included in the statistical scope of natural gas consumption volume resulting in a significant change in the data.
Number of employee volunteer activities Times 43 62 2. The new businesses were put into operation in September 2023 and the businesses were expanded with the construction of new warehouses and the replacement of
electrical equipment in 2024 so the consumption volume of externally purchased electricity was changed significantly.
3.The new businesses were put into operation in September 2023 and the businesses were expanded with the construction of new warehouses and the increase in water
Number of participating in rural revitalization projects Pieces 4 1 usage scenarios for coal business in 2024 so the total water consumption volume was changed significantly.
4.In 2024 Xiangming Oil was included in the statistical scope of waste gas emissions resulting in a significant change in the data.
Number of participating in industry forums/technical ex-change meetings Times 35 40 5.In 2024 the calculation method was changed namely the weighted average was used to calculate the pollutants content in the waste gas resulting in a significant change in the data.
108 109Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
System Certification Overview
Certification
Standards Certification Entities Certification Scope
Certification
Standards Certification Entities Certification Scope
Yancheng Xiangyu Environmental Resources Nantong Xiangyu Shipbuilding & Offshore
Production and sales of iron concentrate products Steel shipbuilding
Mining Technology Co. Ltd. Engineering Co. Ltd.ISO 14001
Sales and import trade of ferrous metals mineral products and coal; export Sales of metal ores chemical products (excluding licensed chemical
Fujian Xingda Import & Export Trading Co. Ltd.trade of ferrous metals and non-ferrous metals products) photovoltaic equipment and components & parts; domestic cargo
Xiamen Xiangyu New Energy Co. Ltd.transportation agency; sales of lithium hydroxide and nickel sulfate within the
qualification scope (without storage place operation)
Rizhao Xiangming Oils Co. Ltd. Processing of edible soybean oil and raw material soybean meal of feed
Safety management activities for food production in the rice production
Suihua Xiangyu Cereals and Oil Technologies Co.Domestic trade and import/export trade of ferrous and non-ferrous metal ISO 22000 workshop of Suihua Xiangyu Cereals and Oil Technologies Co. Ltd. (located in Ltd.raw materials and their products (except for hazardous chemicals and goods Zhangwei Town Beilin District Suihua City)
Chengda Products (Xiamen) Co. Ltd.restricted by state for corporate operation or prohibited by state for import/
export)
Nantong Xiangyu Shipbuilding & Offshore Information security management activities related to shipbuilding;
ISO 27001
ISO 9001 Engineering Co. Ltd. Information Security Statement of Applicability (SOA) Version 1.1
Sales import and re-export trade services of coal metal ores and their
Xiamen Xiangyu Resources Co. Ltd.products
Yancheng Xiangyu Environmental Resources Production and sales of iron concentrate products and supporting activities
Mining Technology Co. Ltd. thereof
Sales of photovoltaic equipment and components & parts; domestic cargo
Fujian Xiangyu New Energy Co. Ltd.transportation agency; international cargo transportation agency
Domestic trade and import/export trade of ferrous and non-ferrous metal
raw materials and their products (except for hazardous chemicals and goods
Chengda Products (Xiamen) Co. Ltd.Nantong Xiangyu Shipbuilding & Offshore restricted by state for corporate operation or prohibited by state for import/
Steel shipbuilding
Engineering Co. Ltd. export)
Sales of metal ores chemical products (excluding licensed chemical Sales of photovoltaic equipment and components & parts; domestic cargo ISO 45001 Fujian Xiangyu New Energy Co. Ltd.products) photovoltaic equipment and components & parts; domestic cargo transportation agency; international cargo transportation agency
Xiamen Xiangyu New Energy Co. Ltd.transportation agency; sales of lithium hydroxide and nickel sulfate within the
qualification scope (without storage place operation)
Nantong Xiangyu Shipbuilding & Offshore
Steel shipbuilding
Engineering Co. Ltd.Suihua Xiangyu Cereals and Oil Technologies Co. Environmental management activities related to the processing of rice and its
Ltd. related places
Sales of metal ores chemical products (excluding licensed chemical
products) photovoltaic equipment and components & parts; domestic cargo
Xiamen Xiangyu New Energy Co. Ltd.Yancheng Xiangyu Environmental Resources Production and sales of iron concentrate products and supporting activities transportation agency; sales of lithium hydroxide and nickel sulfate within the
Mining Technology Co. Ltd. thereof qualification scope (without storage place operation)
Domestic trade and import/export trade of ferrous and non-ferrous metal Management of energy procurement receiving & storage transportation/Yancheng Xiangyu Environmental Resources
ISO 14001 raw materials and their products (except for hazardous chemicals and goods distribution and use involved in the production operation and service of iron
Chengda Products (Xiamen) Co. Ltd. Mining Technology Co. Ltd.restricted by state for corporate operation or prohibited by state for import/ concentrate products as well as the application of energysaving technologies
export) ISO 50001
Nantong Xiangyu Shipbuilding & Offshore
Energy management activities involved in the steel shipbuilding process
Sales of photovoltaic equipment and components & parts; domestic cargo Engineering Co. Ltd.Fujian Xiangyu New Energy Co. Ltd.transportation agency; international cargo transportation agency
HACCP Rizhao Xiangming Oils Co. Ltd. Processing of edible soybean oil and raw material soybean meal of feed
Xiamen Xiangyu Singamas Container Co. Ltd. General freight storage services container yard services
110 111Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Index of Indicators
Benchmark Index to the Guidelines of the Stock Exchange GRI Content Index
Topics disclosed Sections of the Report Xiamen Xiangyu has reported the information cited in this GRI content index for the period from January 1 2024 to December Statement of use 31 2024 with reference to the GRI Standards.Climate Change Tackling Energy Conservation and Carbon Reduction to Respond to Climate Change GRI 1 used GRI 1: Foundation 2021
Pollutant discharge Pollution Prevention and Control to Promote Ecological Protection
GRI STANDARD DISCLOSURE LOCATION
Waste disposal Pollution Prevention and Control to Promote Ecological Protection
GRI 2: General Disclosures 2021
Ecosystem and bio-diversity protection Pollution Prevention and Control to Promote Ecological Protection 2-1 Organizational details About Xiamen Xiangyu
2-2 Entities included in the organization’s sustainability reporting Report Preparation Description
Environmental com-pliance management Environmental Compliance to Consolidate Responsibility Management
2-3 Reporting period frequency and contact point Report Preparation Description
Energy usage Energy Conservation and Carbon Reduction to Respond to Climate Change
2-4 Restatements of information Report Preparation Description
Usage of water re-sources Resource Conservation to Develop Recycling Economy Independent Assurance and 2-5 External assurance
Statement of Opinion
2-6 Activities value chain and other business relationships ESG Management
Circular economy Resource Conservation to Develop Recycling Economy
People-oriented Compose a Bright
2-7 Employees
Future
Rural revitalization Take Responsibility Share Development Achievements Standardized Operations to Achieve
2-8 Governance structure and composition
Efficient and Steady Governance
Contributions to the society Take Responsibility Share Development Achievements Standardized Operations to Achieve 2-10 Nomination and selection of the highest governance body
Efficient and Steady Governance
Standardized Operations to Achieve
Innovation-driven Innovation-driven Escort Industrial Upgrading 2-11 Chair of the highest governance body Efficient and Steady Governance
Not involved. The Company's core business does not involve scientific research technology 2-12 Role of the highest governance body in overseeing the management of impacts ESG Management
Technology ethics development and other activities in sensitive fields such as life sciences and artificial intelligence
ethics. 2-13 Delegation of responsibility for managing impacts ESG Management
Supply chain security Gather Sincerity Build Cooperative Ecosystem 2-14 Role of the highest governance body in sustainability reporting ESG Management
Standardized Operations to Achieve
Equal treatment to small and medi-um-sized Not involved. The Company treats small and medium-sized enterprises equally and there is no 2-15 Conflicts of interest Efficient and Steady Governance
enterprises overdue payment to small or medium-sized en-terprises.
2-16 Communication of critical concerns ESG Management
Safety and quality of products and services Gather Sincerity Build Cooperative Ecosystem Standardized Operations to Achieve
2-17 Collective knowledge of the highest governance body
Efficient and Steady Governance
Standardized Operations to Achieve
Data security and customer privacy protection Innovation-driven Escort Industrial Upgrading 2-18 Evaluation of the performance of the highest governance body Efficient and Steady Governance
People-oriented Compose a Bright
2-19 Remuneration policies
Employees People-oriented Compose a Bright Future Future
Standardized Operations to Achieve
2-20 Process to determine remuneration
Efficient and Steady Governance
Due diligence Risk Control Orientation to Securely Adhere to the Com-pliance Bottom Line Gather Sincerity Build Cooperative
2-25 Processes to remediate negative impacts
Ecosystem
Communications with stakeholders ESG Management Honest Business Operation to Adhere
2-26 Mechanisms for seeking advice and raising concerns to Commercial Ethics; People-oriented
Compose a Bright Future
Anti-commercial bribery and an-ti-corruption Honest Business Operation to Adhere to Commercial Ethics Risk Control Orientation to Securely 2-27 Compliance with laws and regulations
Adhere to the Compliance Bottom Line
Anti-unfair competi-tion Honest Business Operation to Adhere to Commercial Ethics 2-29 Approach to stakeholder engagement ESG Management
112 113Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
GRI STANDARD DISCLOSURE LOCATION GRI STANDARD DISCLOSURE LOCATION
GRI 3: Material Topics 2021 GRI 303: Water and Effluents 2018
3-1 Process to determine material topics ESG Management 303-1 Resource Conservation to Develop Interactions with water as a shared resource
Recycling Economy
3-2 List of material topics ESG Management 303-2 Pollution Prevention and Control Management of water discharge-related impacts
to Promote Ecological Protection
3-3 Management of material topics ESG Management 303-4 Pollution Prevention and Control Water discharge
to Promote Ecological Protection
GRI 201: Economic Performance 2016 303-5 Resource Conservation to Develop Water consumption
Recycling Economy
201-1 Direct economic value generated and distributed Refer to the annual report GRI 304: Biodiversity 2016
People-oriented Compose a Bright
201-3 Defined benefit plan obligations and other retirement plans 304-1 Operational sites owned leased managed in or near protected areas and areas Pollution Prevention and Control Future of high biodiversity value outside protected areas to Promote Ecological Protection
GRI 203: Indirect Economic Impacts 2016 GRI 305: Emissions 2016
Take Responsibility Share Development
203-1 Infrastructure investments and services supported Energy Conservation and Carbon
Achievements 305-5 Reduction of GHG emissions Reduction to Respond to Climate
Take Responsibility Share Development Change
203-2 Significant indirect economic impacts
Achievements
305-7 Pollution Prevention and Control Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant air emissions
to Promote Ecological Protection
GRI 205: Anti-corruption 2016
GRI 306: Waste 2020
Honest Business Operation to Adhere to
205-1 Operations assessed for risks related to corruption
Commercial Ethics
306-1 Pollution Prevention and Control Waste generation and significant waste-related impacts
Honest Business Operation to Adhere to to Promote Ecological Protection
205-2 Communication and training about anti-corruption policies and procedures
Commercial Ethics
306-2 Pollution Prevention and Control Management of significant waste-related impacts
Honest Business Operation to Adhere to to Promote Ecological Protection
205-3 Confirmed incidents of corruption and actions taken
Commercial Ethics
306-3 Pollution Prevention and Control Waste generated
to Promote Ecological Protection
GRI 206: Anti-competitive Behavior 2016
GRI 308: Supplier Environmental Assessment 2016
206-1 Legal actions for anti-competitive behavior anti-trust and monopoly practices No Related Lawsuit in the Company
308-1 Gather Sincerity Build New suppliers that were screened using environmental criteria
GRI 207: Tax 2019 Cooperative Ecosystem
Gather Sincerity Build
Risk Control Orientation to Securely 308-2 Negative environmental impacts in the supply chain and actions taken
207-1 Approach to tax Cooperative Ecosystem
Adhere to the Compliance Bottom Line
Risk Control Orientation to Securely GRI 401: Employment 2016
207-2 Tax governance control and risk management
Adhere to the Compliance Bottom Line
401-1 People-oriented Compose a New employee hires and employee turnover
207-3 Stakeholder engagement and management of concerns related to tax Refer to the annual report Bright Future
401-2 Benefits provided to full-time employees that are not provided to temporary or People-oriented Compose a
207-4 Country-by-country reporting Refer to the annual report part-time employees Bright Future
401-3 People-oriented Compose a Parental leave
GRI 301: Materials 2016 Bright Future
Resource Conservation to Develop GRI 403: Occupational Health and Safety 2018
301-1 Materials used by weight or volume
Recycling Economy
403-1 People-oriented Compose a Resource Conservation to Develop Occupational health and safety management system
301-3 Reclaimed products and their packaging materials Bright Future
Recycling Economy
403-2 People-oriented Compose a Hazard identification risk assessment and incident investigation
GRI 302: Energy 2016 Bright Future
Energy Conservation and Carbon 403-3 People-oriented Compose a Occupational health services
302-1 Energy consumption within the organization Reduction to Respond to Climate Bright Future
Change
403-4 Worker participation consultation and communication on occupational health People-oriented Compose a
Energy Conservation and Carbon and safety Bright Future
302-4 Reduction of energy consumption Reduction to Respond to Climate
403-5 People-oriented Compose a Change Worker training on occupational health and safety Bright Future
Energy Conservation and Carbon
302-5 Reductions in energy requirements of products and services Reduction to Respond to Climate 403-6 People-oriented Compose a Promotion of worker health
Change Bright Future
114 115Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
GRI STANDARD DISCLOSURE LOCATION Reader Feedback Form
403-7 Prevention and mitigation of occupational health and safety impacts directly People-oriented Compose a
linked by business relationships Bright Future
403-8 People-oriented Compose a Workers covered by an occupational health and safety management system
Bright Future
403-9 People-oriented Compose a Work-related injuries Dear readers
Bright Future
403-10 People-oriented Compose a Work-related ill health
Bright Future Thank you for reading the Environmental Social and Governance (ESG) Report
2024 of Xiamen Xiangyu Co. Ltd. To provide you and other stakeholders with more
GRI 404: Training and Education 2016 professional and valuable ESG corporate information please kindly assist us in
People-oriented Compose a completing the relevant questions in the Feedback Form so as to help us further 404-1 Average hours of training per year per employee
Bright Future improve the ESG work in the future.People-oriented Compose a Scan to complete the 404-2 Programs for upgrading employee skills and transition assistance programs
Bright Future Reader Feedback Form
GRI 405: Diversity and Equal Opportunity 2016 Choice questions (Please tick √ the appropriate place)
Standardized Operations to
405-1 Achieve Efficient and Steady Diversity of governance bodies and employees
Governance; People-oriented □ Employee □ Customer □ Supplier □ Regulatory Body □ Investor □ Media □ Others (Please specify)
Compose a Bright Future
GRI 406: Non-discrimination 2016
406-1 People-oriented Compose a □ Excellent □ Good □ Average □ Poor □ Very PoorIncidents of discrimination and corrective actions taken
Bright Future
GRI 413: Local Communities 2016
□ Very Reasonable □ Reasonable □ Average □ Poor □ Very Poor
413-1 Operations with local community engagement impact assessments and Take Responsibility Share
development programs Development Achievements
GRI 414: Supplier Social Assessment 2016
□ Excellent □ Good □ Average □ Poor □ Very Poor
414-1 Gather Sincerity Build New suppliers that were screened using social criteria
Cooperative Ecosystem
414-2 Gather Sincerity Build Negative social impacts in the supply chain and actions taken
Cooperative Ecosystem □ Excellent □ Good □ Average □ Poor □ Very Poor
GRI 416: Customer Health and Safety 2016
416-1 Gather Sincerity Build Assessment of the health and safety impacts of product and service categories
Cooperative Ecosystem □ Excellent □ Good □ Average □ Poor □ Very Poor
□ Excellent □ Good □ Average □ Poor □ Very Poor
Open question:
What comments and advice do you have for Xiamen Xiangyu’s ESG work
116 117Xiamen Xiangyu Environmental Social and Governance (ESG) Report 2024 Introduction Special Focus Consolidate Green Empowerment to Collaborative Growth Conclusion
Governance to Jointly Jointly Build Ecological and Coexistence to
Build the Foundation Civilization Jointly Draw a Beautiful
for Development Blueprint
Independent Assurance and Statement of Opinion 5. Verify the process management of the principles of inclusiveness materiality responsiveness and impact in the report and its related AA1000AS v3 to confirm the appropriateness of this statement.
6. Perform other procedures deemed necessary by Infaith Group.
InFaith Group (hereinafter referred to as “InFaith”) as entrusted by Xiamen Xiangyu Co. Ltd. (hereinafter referred to as “XiamenXiangyu”) has conducted independent limited assurance of the environmental social and governance information and data disclosed in Assurance Conclusions
Xiamen Xiangyu 2024 Environmental Social and Governance Report (hereinafter referred to as “Report”) and disclosed the assurance
1. According to the information provided by Xiamen Xiangyu and the sample test there is no misrepresentation in the Report.
result and conclusion to readers of the Report in the form of independent assurance and statement of opinion.
2. For the principles of inclusiveness substantiality responsiveness and impact included in AA1000AS v3 the detailed assurance
conclusions are as follows:
Independence and Capability
1. All the assurance team members of InFaith have no business relationship with Xiamen Xiangyu that leads to conflicts of interest; The According to the Report Xiamen Xiangyu has taken important measures including continuously seeking the
team of InFaith has performed this assurance work independently. participation of stakeholders in the business operation understanding their expectations and concerns
2. The assurance team of InFaith consists of experienced professionals in the industry. Relevant persons have received professional Inclusiveness communicating about and confirming substantive issues in a timely manner etc. to respond responsibly and
training on the GRI Standards issued by the GRI AA1000AS v3 ISO 14001 ISO 26000 SA 8000 EcoVadis global supply chain strategically to stakeholders related to the social responsibilities of the Company.rating and other sustainability-related standards and have adequate understanding and practical experience in relevant international
principles evaluation systems and assurance standards. Xiamen Xiangyu has announced major topics that will have substantial influence and impact on the evaluation
Substantiality decision-making actions and performance of the organization and its stakeholders and judged and improved
Assurance Statement the management and performance of the issues.
1. Xiamen Xiangyu management shall be fully held accountable for the preparation and content of the Report. It is the responsibility of
Xiamen Xiangyu has implemented relevant policies and is able to respond to issues that concern the
InFaith to conduct an assurance based on the scope as described herein and to provide professional assurance opinions to the Report Responsiveness
stakeholders in a timely manner.readers and stakeholders.
2. Based on the assurance scope limits InFaith shall in accordance with AA1000AS v3 conduct independent limited assurance and XiameXiamen Xiangyu has the adequate ability to identify substantive issues. It has implemented balanced
guarantee conclusion for the matters within the scope defined in the Report. In addition to providing independent assurance and making and effective evaluation and disclosure methods and has established a systematic process for monitoring
other statements of opinion on the facts of assurance under the conclusion InFaith will not assume any legal or other liabilities for any Impact measurement evaluation and management impact so as to achieve more efficient management of decision-
inquiries for any other purposes or for any other persons who read this Independent Assurance and Statement of Opinion. making and results within the organization and demonstrate the impact of the substantive issues in an
3. Any questions regarding the contents or related matters stated therein will be answered by Xiamen Xiangyu.. impartial and objective manner.
4. In the event of any conflict or inconsistency between the Chinese version and the English version of this Independent Assurance and
Statement of Opinion the Chinese version shall prevail.
3. Based on the procedures implemented and the evidence obtained by InFaith we have found nothing that causes us to doubt the
Assurance Standard reliability and quality of the specific performance indicators selected in the Report.InFaith adopts AA1000 v3 type-1 medium assurance level which includes Xiamen Xiangyu’s evaluation of the compliance situation and
degree of the four AA1000 v3 assurance principles including inclusiveness substantiality responsiveness and impact. Limitation
The assurance process was carried out at the location within the scope of the Report.Assurance Scope Because there is no internationally recognized and commonly used standard for the evaluation and measurement of non-financial
information the application of different but acceptable information and measurement technologies may affect the comparability with
1. The assurance scope is limited to the information and data of Xiamen Xiangyu and its affiliated companies covered by the Report
other institutions.excluding the data and information of Xiamen Xiangyu suppliers contractors and other third parties.
2. InFaith adopts AA1000AS v3 type-1 moderate assurance level to evaluate Xiamen Xiangyu’s compliance nature and degree of the
If you have any advice for this Independent Assurance and Statement of Opinion you may contact:
four assurance principles in AA1000AS v3.Tel: 021-20740303
Email: esg@infaith.com.cn
Assurance Process and Work Address: 17F Tower T1 Lujiazui Riverside Center Lane 257 Binjiang Avenue Pudong New District Shanghai
In order to collect evidence related to the conclusion Infaith Group has carried out the following work:
1. Interview with the senior management team and employees of Xiamen Xiangyu Co. Ltd. to understand the overall situation and
related processes of Xiamen Xiangyu Co. Ltd. in fulfilling its corporate environmental social and governance responsibilities.
2. Verify the key development and policy implementation of relevant organizations of Xiamen Xiangyu Co. Ltd. and the supporting
evidence of the announcement made in the verification report.
3. Through interviews and inspection of relevant documents understand the expectations and needs of major stakeholders and
stakeholders of Xiamen Xiangyu Co. Ltd. the specific communication channels between the two parties and how Xiamen Xiangyu Co. InFaith Group
Ltd. responds to the expectations and needs of stakeholders. Shanghai June 2025
4. Select the information related to environment society and governance in this report carry out analytical verification procedures and
overall performance of this information and evaluate and verify whether it is consistent with the contents of the report.
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