Stock Code: 600057 Stock Abbreviation: Xiamen

Xiangyu

Xiamen Xiangyu Co. Ltd.2025 Interim Report (Summary)

This report is prepared in both Chinese and English. The Chinese version shall prevail in case of any

discrepancy between the Chinese and English texts.I. Key Accounting Data and Financial Indicators

Unit: million Yuan Currency: RMB

Current reporting The same period Changes on a YoY basis

Item

period last year (%)

Operating revenue 203948.25 203480.76 0.23

Net profit attributable to

shareholders of the listed 1032.12 779.06 32.48

company

Net profit attributable to

shareholders of the listed

330.74255.0429.68

company after deducting the

non-recurring profit and loss

Net cash flow from operating

-2985.79 -10495.88 Not applicable

activities

Basic earnings per share

0.310.2810.71

(Yuan/share)

Diluted earnings per share

0.310.2810.71

(Yuan/share)

Weighted average return on

4.99 3.98 Increased by 1.01 pp

equity (%)

At the end of At the end of last Changes compared to the

reporting period year end of last year (%)

Owner’s equity attributable to the

shareholders of the listed 29925.57 23821.81 25.62

company

Total assets 136698.30 123872.66 10.35

Remark:

The net profit attributable to shareholders of the listed company in the above table during the

reporting period includes the interest of RMB 232 million attributable to perpetual bond holders

during the reporting period. After deduction the net profit attributable to shareholders of the listed

company during the reporting period is RMB 800 million. Perpetual bonds and interest were

deducted when calculating the above-mentioned major financial indicators such as basic earnings

per share diluted earnings per share and weighted average return on equity.

1II. Industry Analysis During the Reporting Period

1. Analysis of the Industry’s Operating Conditions

In the first half of 2025 confronted with rapidly shifting external dynamics China accelerated the

implementation of more proactive counter-cyclical policies. As a result major economic indicators

exceeded expectations new quality productive forces continued to strengthen and the overall

economy remained stable. Nevertheless the global macroeconomic environment remained

complex and challenging. Changes in tariff policies persistent geopolitical conflicts diverging

monetary policy paths among major economies and fundamental adjustments in global trade

patterns have all contributed to heightened uncertainty and volatility across the bulk commodity

supply chain sector.As traditional industries such as real estate and infrastructure slowed their demand-driving effect

on raw materials such as steel cement and non-ferrous metals weakened. Meanwhile emerging

industries such as new energy and advanced manufacturing have yet to generate sufficient

additional demand for bulk commodities. Consequently the overall market was characterized by

“stable growth with weak recovery”. In parallel the “de-bubbling” effect driven by domestic

“Anti-Involution” orientation (aimed at curbing hyper-competition) of domestic industrial chains

has been steering the commodity manufacturing sector away from extensive expansion toward

higher-quality growth. This shift while echoing supply-side structural reforms also introduces

new variables into the industry’s rebalancing of supply and demand.In summary the bulk commodity supply chain industry in the first half of the year remained

confronted with multiple challenges: (1) tariff adjustments reshaped global trade flows of certain

bulk commodities disrupting the previously stable global supply chain system; (2) heightened

geopolitical uncertainty amplified risks while frequent monetary policy adjustments by major

economies posed unprecedented external shocks; (3) domestic manufacturing faced dual pressures

from supply-demand mismatches and rising external demand uncertainty both of which have been

exerting continuous pressure on the operations of supply chain enterprises.In response to complex circumstances marked by multiple overlapping external uncertainties

leading bulk commodity supply chain enterprises accelerated transformation efforts and

strengthened systemic risk resilience. On one hand they intensified monitoring and assessment of

2macroeconomic conditions international policy and industrial trends establishing flexible global

supply chain systems and diversified sourcing channels. This reduced dependence on single

countries or markets and enhanced overall supply chain resilience. On the other hand in light of

evolving demand patterns leading enterprises proactively expanded into emerging sectors such as

new energy new materials and green low-carbon industries driving the transition of traditionalresource-oriented businesses into integrated platforms combining “resources + technology +services” unleashing greater developmental vitality. In addition they accelerated digital and

intelligent transformation through industrial chain collaboration information-based platforms and

smart logistics deployment achieving cost control efficiency improvements and rapid response

capabilities. Furthermore they strengthened mechanisms for managing exchange rate price and

policy risks employing tools such as hedging insurance instruments and long-term fixed-price

agreements to mitigate operational impacts caused by external volatility and enhance operational

stability. Overall top-tier bulk commodity supply chain enterprises continued upgrading toward

higher efficiency greater value creation and deeper globalization seizing opportunities amid

global competition and market adjustments while building sustainable moats for high-quality

development.

2. Industry Development Trends

(1) Industry Chain Restructuring Drives Further Consolidation and Full-Chain

Integration among Supply Chain Leaders

Surging volatility in global commodity prices coupled with cyclical and structural headwinds

across select industries has heightened operational pressure on bulk commodity supply chain

players. Top-tier companies leveraging strengths in resource access value-added services and

risk control are actively expanding their channel networks and capturing greater market share

showcasing strong counter-cyclical expansion capacity. On a volume basis the CR51 market

share2 of China’s bulk commodity supply chain industry rose from 4.81% in 2021 to an estimated

5.42% in 2024 reflecting a pronounced market leader effect and rising market concentration.

1 specifically referring to Wuchan Zhongda Group Co. Ltd. Xiamen C&D Inc. Xiamen ITG Group Corp.Ltd. Xiamen

Xiangyu Co. Ltd. Zheshang Development Group Co. Ltd..

2 the CR5 market share = the CR5 business scale/ the scale of China’s bulk supply chain market scale where the CR5 business

scale represents the combined operating (or sales) volume of the supply chain segments of the CR5 companies and the scale of

China’s bulk supply chain market scale is the sum of the domestic production and import volumes of major bulk commodities.

3Meanwhile leading commodity enterprises are accelerating their transformation from traditional

“trading intermediaries” into “full-chain service providers”. While consolidating their dominance

in distribution they are progressively extending upstream into resource acquisition expanding

midstream processing and exploring opportunities to engage with downstream consumer

segments thereby broadening operational boundaries deepening industry chain involvement and

strengthening control across the full chain.Figure 1：Operating Volume and Market Share of CR5 Figure 2：XIANGYU’s Operating Volume and Market

in China’s Bulk Supply Chain Industry Share in China's Bulk Supply Chain Industry

(2) Accelerating Iteration of Manufacturing Customer Demand Spurs

Integrated Full-Chain Supply Chain Services

Against the backdrop of an ongoing nationwide shift to “Anti-Involution” within domestic

industrial chains manufacturing clients are shifting from scale-driven competition over existing

market share toward pursuing value breakthroughs driven by quality and efficiency. This transition

is leading to significantly higher demands for integrated supply chain services. In response bulk

supply chain enterprises are accelerating their transformation from traditional traders to integrated

service providers. They are continuously enhancing their capabilities in bundled supply chain

coordination channel integration and customized services which makes the advantages of the

"trade-logistics linkage" model increasingly evident. Furthermore leading enterprises are

enhancing their overall service efficiency and customer loyalty by strengthening mid-to-upstream

resource integration and boosting collaboration in mid-to-downstream segments-including

logistics warehousing and financial services. As a result integrated full-chain multi-category

supply chain service systems are increasingly well established providing robust support for the

scale expansion and sustained profitability of leading enterprises.

(3) Accelerating Restructuring of Global Manufacturing Capacity and

4International Expansion Opens a “Second Growth Curve” for the Industry

Driven by geopolitical disruptions global manufacturing capacity is undergoing accelerated

regional restructuring. As Chinese manufacturing enterprises are increasingly expanding into Belt

and Road Initiative countries demand for overseas raw material sourcing logistics services and

cross-border financial services is rising. In response bulk supply chain enterprises are seizing

opportunities to connect global resources and markets by accelerating the establishment of

overseas warehousing networks regional logistics centers and international trade platforms while

also building global talent systems and localized operational capabilities. Against the backdrop of

rising global geopolitical risks the demand for supply chain security and resilience has become

increasingly urgent than ever. Supply chain enterprises with comprehensive overseas service

capabilities are expected to stand out as front-runners. Furthermore industry chain investments in

critical resources key logistics nodes and overseas processing are expected to propel these

enterprises into a new phase of cross-cycle growth.

(4) Rising Global Tariff Uncertainty Shakes the Commodity Industry While

Monetary Policy Shifts Could Trigger a Liquidity Turning Point

The commodity industry currently faces interrelated policy and market uncertainties with rising

cross-border transaction costs constraints on global investment and trade and significantly

increased commodity price volatility. Under the combined effect of a more dovish U.S. Federal

Reserve emphasizing a data-driven approach and policy flexibility and China’s proactive

domestic policies liquidity conditions are expected to improve. This should ease high financing

costs and tight liquidity challenges for supply chain enterprises providing external support for

industry recovery and renewed growth.

(5) Deepening Digital and Intelligent Infrastructure Enhances Efficiency and

Extends the Value Chain in the Industry

With rising requirements for efficiency and security in bulk commodity circulation digitally

intelligent supply chain upgrades have become a key driver for reshaping enterprisecompetitiveness. According to the “Special Action Plan for Accelerating the Development ofDigital and Intelligent Supply Chains (2025)” jointly issued by eight ministries including the

Ministry of Commerce by 2030 a deeply embedded intelligent efficient and autonomously

controlled digital supply chain system will be established in key industries and critical sectors.

5Supported by favorable policies leading enterprises are setting up AI-enabled supply chain

application platforms and deepening AI integration into high-level applications such as digitally

intelligent supply chain solutions smart risk control and industry chain collaboration.Concurrently they are accelerating the digitalization of logistics systems interconnection of

multimodal transport platforms and platform-based development of supply chain finance systems.AI and other technologies are becoming core drivers of supply chain resilience and value creation

increasingly embedded in critical areas including collaborative supply chain management risk

control systems contract execution and logistics monitoring thereby enabling integrated

management of commercial logistical informational and financial flows.III. Business Analysis During the Reporting Period

The Company specializes in bulk supply chain services with manufacturing enterprises as its core

customers. It provides comprehensive supply chain solutions covering the procurement of bulk

raw and auxiliary materials product distribution logistics and delivery supply chain finance and

information consulting etc. The Company is committed to becoming a global leader in industry

chain operations driven by supply chain services.

1. Business Structure

In terms of product portfolio based on customer needs and its own business philosophy the

Company applies the following product selection criteria: * high liquidity and easy monetization;

* high standardization and easy storage; * substantial demand with extended industrial chains

that enable integrated multi-stage services. The Company currently focuses on bulk commodities

including metallic minerals agricultural products energy and chemicals and new energy

materials covering seven core categories: ferrous metals aluminum stainless steel new energy

coal oil and grains.

6Figure 3: Breakdown of Combined Spot and Futures Gross Profit in H1 2025

In terms of customer structure the Company’s service volume for manufacturing clients remains

stable at approximately 60% in the first half of 2025. Specifically around 70% of services are

within the new energy supply chain over 60% within the ferrous metals coal and stainless steel

supply chains，and over 50% within the aluminum oil and grain supply chains.In terms of regional presence the Company has long adhered to its international business strategy

establishing key platform subsidiaries in major overseas markets such as the United States Hong

Kong Singapore Vietnam Indonesia and South Africa. It continues to attract outstanding talent

and strengthen its international team-building efforts with subsidiaries or representative offices

now operating in 10 countries and regions including Singapore the United States Germany Saudi

Arabia Indonesia Vietnam South Africa and Nigeria. By fully integrating its supply chain

advantages logistics services and platform resources the Company focuses on expanding access

to high-quality upstream mineral resources overseas and tapping into the supply chain demands of

large corporations in international markets. These efforts have led to simultaneous growth in both

the scale and quality of its overseas operations with business partners now spanning more than

110 countries and regions worldwide.

In the first half of 2025 the Company focused on expanding into emerging markets along the Belt

and Road Initiative including Southeast Asia Africa and South America achieving diversified

trade and a more balanced market presence. During this period the volume of import export and

transit businesses reached approximately 47 million tons with the total value of about USD 13.2

billion representing a year-on-year increase of 7%.

7Figure 4: Company’s Global Business Footprints

2. Business ModelThe Company has consistently upheld the strategic vision of “Rooted in Supply Chains ServingIndustry Chains and Creating Value Chains”. Guided by a customer-centric approach it extends

upstream to secure resources and downstream to expand channels. Its service portfolio has

evolved from single-link support to a comprehensive industry-chain service model under the

Company’s distinctive Xiamen Xiangyu model encompassing raw material procurement finished

product distribution inventory management warehousing and logistics and supply chain finance.After achieving service advantages across the entire industry chain the Company seized the

opportunity to tap into value-adding manufacturing segments forming an industrial chain

operation model of “Supply Chain Services + Production Manufacturing” which further enhanced

comprehensive revenue profitability and buffered cyclical fluctuations.As the industry enters a new era and faces emerging industrial patterns and international trends

the Company will drive industry chain operations through supply chain services. Adhering to an

industry-chain perspective the Company aims to develop an asset management mindset and

cultivate a multi-factor business model. It also seeks to nurture core assets across different

segments of the industry chain. The Company will gradually upgrade to a diversifiedindustry-chain operation model encompassing “Resources Trade Logistics Services Processingand Investment”. This transformation will further broaden its value realization channels and

enable more diversified access to comprehensive benefits across the industrial chain.

8Figure 5：Company's Operating Model

3. Profit Model

The Company prioritizes service and scale-driven profitability while also capitalizes on price

differentials to generate profits and further enriches its profit model through an asset management

approach. For a detailed breakdown of the Company’s profit please refer to the table below.

9Table 1: Profit Structure and Definitions

Types of Profit Interpretation

Leveraging its platform advantages and scaled operations the Company provides

customers with comprehensive services across the entire industry chain. These

Service Profits offerings encompass procurement and sales processing logistics and distribution

supply chain finance and information consulting through which the Company

generates service-based revenue.Scale-based

Relying on its large business scale the Company achieves cost advantages through

Profit From

centralized procurement and specialized operations reducing operational costs

Transaction Cargo across various segments and generating trading gains.Consolidation

Profits Profits By utilizing its expertise in professional analysis the Company conducts trades by

From Price studying commodity price trends over time and regional price differences across

Disparities various areas to generate profitability.By maintaining an industry-chain perspective the Company engages in higher

value-added segments and with an asset management mindset generates returns

Industry Operation Profits

from resources productive services industrial investment and global arbitrage

opportunities.IV. Management Discussion and Analysis of Business Operation

1. Key Operating Results for H1 2025

Since 2023 the global macroeconomic environment has been increasingly complex and

challenging with persistent geopolitical conflicts divergent monetary policy paths among major

economies and deep adjustments in global trade patterns all posing significant challenges to bulk

commodity supply chain enterprises.In 2024 with the smooth succession of the Company’s management team the Company

accurately assessed medium- to long-term trends amid market changes flexibly adjusted its

operational strategies and resolutely optimized its customer structure and business portfolio.These efforts gradually mitigated the impact of external environmental changes on its operating

performance enabling the stabilization and improvement of its core business fundamentals. The

industry-chain operation model centered on serving manufacturing clients demonstrated strong

self-repairing capability and developmental resilience.In the first half of 2025 the Company continued to strengthen research-driven decision-making

and full-cycle risk management consolidating advantages in integrated trade digital intelligence

and upstream-downstream channel resources. By deepening full industry-chain operations and

10promoting business model through organizational reforms and management innovation the

Company achieved growth in both operational volume and net profit. While maintaining a leading

market share key indicators rebounded and overall performance continued to improve

highlighting the strengths of its business model and the effectiveness of its operational

optimization. During the reporting period the Company achieved an operational volume of over

120 million tons representing a year-on-year increase of over 19.02%; revenue of RMB 203.9

billion up 0.23% year-on-year; net profit attributable to shareholders of RMB 1.032 billion up

32.48%; and a return on net assets of 4.99% increasing by 1.01 percentage points year-on-year.

2. Key Management Achievements for H1 2025

In the first half of 2025 standing at the starting point of the new five-year period (2026–2030) theCompany’s management led all employees under the operational theme of “Enhancing QualityPromoting Innovation and Controlling Risks” achieving significant results in strategic planning

organizational transformation risk management R&D deepening and digital intelligence

enablement.

(1) Defining Strategic Direction. Through over 50 in-depth strategy workshops the Company

conducted a comprehensive review and forward-looking planning building consensus for the next

five-year period (2026–2030) across key areas such as business model transformation and

innovation internationalization logistics integration industrial investment new business

development and organizational control. This effort clarified the “Three New and One High”strategic orientation introduced a new multi-element business model of “Resources TradeLogistics Services Manufacturing and Investment” and established new growth drivers with

distinctive Xiangyu characteristics.

(2) Advancing Organizational Transformation. The Company integrated its steel agricultural

and coal segments to strengthen centralized resource coordination and enhance overall operational

efficiency. These efforts will establish a model for gradually forming specialized industrial

sub-groups within different industry chains and lay the groundwork for reshaping organizational

capabilities. Additionally the Company will optimize its two-tier management system—covering

operations management and industrial research—as well as refine the organizational structure of

logistics management. This will clarify division of responsibilities and achieve highly efficient

collaboration.

11(3) Strengthening Risk Management. By optimizing the commodity portfolio and adjusting the

business structure the Company mitigated risks from industry cyclicality; established a dynamic

customer adjustment mechanism; addressed customer concentration issues and improved

group-level customer credit management. The Company also advanced the development of risk

governance systems and capabilities continuously refining institutional frameworks.

(4) Deepening Research and Analysis. The Company enhanced market alerts and medium- to

long-term analyses assessing the impact of tariff policies on agricultural and metal businesses to

help mitigate risks. Over 170 reports were produced covering overseas markets industry

benchmarking niche end-markets energy trends technological iteration and industry cycles

providing robust support for development. The commodity trading teams improved hedging

arbitrage and options strategies optimizing inventory exposure hedging solutions for the

manufacturing segment to mitigate price risks and achieve profitability breakthroughs. At the

same time the Company expanded options-related business applications and deepened business

model innovation.

(5) Expanding Financing Channels. The Company successfully issued a fixed-price private

placement project attracting two strategic investors—China Merchants Group and Shandong Port

Group—and raised RMB 3.22 billion thereby strengthening its capital base. Furthermore

overseas credit resources were further expanded to support the development of international

operations.

(6) Empowering Business with Digital Intelligence. The Company completed the successful

first pilot launch of its next-generation core ERP system achieving full coverage of core business

data and establishing an intelligent management support system. In parallel it incubated and

deployed the AI-powered “YuXiang Assistant” achieving breakthroughs in intelligent document

recognition automated message processing knowledge-based Q&A voice-to-text conversion and

risk alert support thereby significantly enhancing the effectiveness of digital intelligence

enablement across the business.

3. Key Business Data for H1 2025

(1) Bulk Commodity Trading

The Company leverages bulk commodities as its core business entering into comprehensive

12agreements with clients to offer integrated supply chain services encompassing procurement

distribution logistics supply chain finance information consulting and processing. The revenue

and profitability from this segment are reflected in the results of core commodity trading as

outlined below:

Unit: billion RMB

Combined Futures

Combined Futures and Spot

Operating Volume Operating Revenue and Spot Gross

Gross Profit Margin

Profit

Category

Volume

(mn metric YOY Amount YOY Amount YOY Value YOY

tons)

Commodity Trading 120.76 19.02% 193.4 0.14% 2.922 -3.66% 1.51% Decrease by 0.06 ppt

Among these:

68.15 5.38% 109.9 -10.85% 1.665 -26.05% 1.52% Decrease by 0.31 ppt

Metallic Mineral

Energy and Chemical 44.08 42.84% 53.7 20.97% 0.458 51.54% 0.85% Increase by 0.17 ppt

Agricultural Products 8.16 43.75% 22.3 14.92% 0.536 255.01% 2.40% Increase by 1.62 ppt

New Energy 0.37 45.53% 6.4 11.83% 0.225 -25.41% 3.49% Decrease by 1.74 ppt

Note: The Company provides integrated supply chain services and engages in spot trading to support its operations. It utilizes futures

instruments to hedge against price volatility in the commodity markets resulting in changes in fair value and gains or losses from the

disposal of such instruments. The combined gross profit and gross profit margin of the futures and spot trading are calculated after

accounting for the hedging gains or losses.In the metallic mineral segment the Company actively integrated upstream resources and

strengthened refined services for end customers. Trading volumes of iron ore nickel ore steel and

other commodities recorded year-on-year growth driving an increase of more than 5% in overall

operating volume. The aluminum supply chain effectively maintained its market share through

long-term contracts and prudently utilized hedging instruments to secure profit margins achieving

year-on-year growth in spot-futures gross profit. However the stainless steel and coking coal

markets remained weak and volatile which compressed industry chain profitability. Coupled with

adjustments in the product and customer structure of the stainless steel supply chain the

spot-futures gross profit of the metallic minerals supply chain declined year-on-year.In the energy and chemicals segment the Company maintained steady operations during the coal

downcycle with market share in steam coal steadily rising. At the same time crude oil was

developed as a breakthrough commodity driving rapid expansion of the oil internationalization

business. Both the scale of the oil supply chain and combined spot-futures gross profit recorded

13significant growth making it a new growth engine for the segment.

In the agricultural products segment the Company continued to optimize its operating model

business structure and product portfolio. Supply chains for grain raw materials oils & oilseeds

and cotton & yarn all achieved double-digit growth in both trading volume and revenue while

profitability further improved.In the new energy segment the Company expanded and consolidated its procurement channels

scaling up operations in key commodities such as lithium ore and lithium carbonate resulting in

year-on-year growth in total trading volume. However combined spot-futures gross profit

declined year-on-year reflecting structural adjustments within the industry.

(2) Bulk Commodity Logistics

The Company’s logistics system not only responds to internal supply chain business needs but also

leverages its internal operations to develop market-facing service capabilities further feeding back

into the supply chain business and fostering synergies between commodity trading and logistics

services. In parallel the Company develops industrial logistics capabilities to provide

comprehensive supply chain logistics solutions as well as professional logistics capabilities to

implement these solutions effectively accelerating the establishment of a logistics system where

supply chain resources and logistics services complement and empower each other. The operating

results of the Company’s market-oriented logistics services are accounted for separately as

outlined below:

Unit: million RMB

Operating Revenue Gross Profit Gross Profit Margin

Category

Amount YOY Amount YOY Value YOY

Commodity Logistics 4996 17.39% 427 20.51% 8.54% Increase by 0.22 ppt

Among these:

3442 16.39% 351 31.11% 10.19% Increase by 1.14 ppt

Integrated Logistics

Among these:

211 406.09% 9 19.14% 4.26% Decrease by 13.84 ppt

Aluminum Logistics

Railway Logistics 1447 20.75% 63 73.35% 4.36% Increase by 1.32 ppt

Agricultural Product

108 6.74% 13 -74.67% 11.77% Decrease by 37.82 ppt

Logistics

Note:

a. Integrated logistics mainly includes international shipping routes international freight trains inland water

transport road transport and domestic and overseas warehousing. Among these aluminum industry logistics refers

14to market-oriented logistics services provided by the Company’s subsidiary Xiangyu Aluminum Union;

b. Railway logistics and agricultural product logistics refers to market-oriented logistics services provided by the

Company’s subsidiary Xiangdao Logistics and Xiangyu Agricultural Products while agricultural logistics

primarily includes services related to for national and provincial grain reserves.In integrated logistics both revenue and gross profit increased year-on-year primarily driven by

expanded external customer acquisition deeper engagement in international logistics and

strengthened partnerships with key clients. Business volumes on the China–Indonesia and

China–Vietnam routes grew by over 15% and 50% year-on-year respectively while a new Brazil

route was also launched. The Company deepened its engagement with industry-chain clients and

strengthened internal coordination focusing on segments such as new energy and metal minerals

to build a professional logistics service system and facilitate the onboarding of strategic clients

and new business. In the aluminum industry logistics business the Company focused on overseas

advantageous mines and developing core factory clients establishing a full-chain international

logistics channel from source to domestic sales regions achieving revenue growth of over 400%.As aluminum industry logistics business has been still in its initial stage the gross margin

remained volatile; however it is expected to gradually stabilize and improve as the business

structure matures.In railway logistics the Company actively expanded new routes and service categories reinforced

“head-to-head” strategic cooperation with major industrial clients and embedded railway logistics

services into corporate supply chains by tapping into upstream and downstream logistics demand.As a result business volume grew by over 20% year-on-year. Efficiency was enhanced through

optimized allocation of logistics resources lean management and cost control. In addition

profitability improved through developed operations at asset-heavy terminals and higher turnover

efficiency of self-owned vehicles and containers.Agricultural logistics however experienced a decline in gross profit and gross margin due to

business structure adjustments and lower average warehouse utilization. To address this the

Company is actively expanding provincial reserves temporary reserves and entrusted storage

services to enhance warehouse capacity utilization.

(3) Production & Manufacturing

After establishing a service advantage throughout the industry chain the Company strategically

15ventured into the value-added production and manufacturing sector. This move resulted in the

development of an integrated industrial chain operating model that combines supply chain services

with production and manufacturing aiming to enhance overall profitability and mitigate the

impact of cyclical fluctuations in the industry. The operating results in the manufacturing segment

for this period are as follows:

Unit: million RMB

Operating Revenue Gross Profit Gross Profit Margin

Category

Amount YOY Amount YOY Value YOY

Production & Manufacturing 5284 -6.71% 581 -19.09% 10.99% Decrease by1.68 ppt

Among these:

3192 -4.97% 471 -22.98% 14.74% Decrease by 3.45 ppt

Shipbuilding

Note:

a. The manufacturing segment includes shipbuilding beneficiation and oil processing. The business entity of

shipbuilding sector is the Company's subsidiary Nantong Xiangyu Shipbuilding & Offshore Engineering.b. In the shipbuilding segment exchange rate fluctuations of the U.S. dollar led to a decline in reported gross

profit margin. However by using financial instruments to hedge against foreign exchange risks the Company

achieved a year-on-year increase in actual hedged gross profit margin.The shipbuilding segment overcame fluctuations in the international ship market consolidated its

leading position in core vessel types and optimized and upgraded its product portfolio. Through

lean production management and improved production line configuration the segment achieved

industry-leading efficiency in the construction of bulk carriers and chemical tankers significantly

shortening dock and slipway cycles. In the first half of the year 15 new orders were signed

bringing the backlog to 91 vessels including the first order from a renowned international

shipowner for a 210000 DWT large bulk carrier reflecting notable progress in the mid-to-large

vessel market.The year-on-year decline in revenue was primarily due to the transfer of certain orders to the

Qidong new shipyard which was still in its ramp-up phase during the first half resulting in lower

overall completions compared with the same period last year. With the Qidong shipyard reaching

full production capacity Nantong Xiangyu Marine Equipment is expected to see comprehensive

improvements in both capacity and profitability in the second half of the year.

4. International Business Progress in H1 2025

16In the commodity operations the Company achieved approximately 47 million tons in import

export and re-export volumes in the first half with a total value of around USD 13.2 billion

representing a year-on-year increase of 7%. The aluminum supply chain accelerated its global

expansion continuing to build logistics capabilities in West Africa and actively developing

overseas downstream channels for alumina in India and the UAE. The Company also successfully

participated in the IPO of Nanshan Aluminum International securing high-quality commercial

rights. For the stainless steel supply chain the Company promoted stable long-term agreements

with overseas mines and carried out orderly expansion and operation of mining rights. The oil

supply chain extended upstream resources in South America and West Africa while stabilizing

downstream refineries maintaining steady international growth. In the new energy supply chain

the Company deepened its presence in lithium battery products across Africa South America and

Australia partnering with leading resource-based enterprises in Africa to jointly explore overseas

markets.Regarding commodity logistics the China-Indonesia premium shipping route further strengthened

its market influence with the Sulawesi-China route maintaining the leading market share and

route capabilities gradually being replicated and expanded to emerging markets such as India and

Africa. International container allocation and overseas client development capabilities steadily

improved. In aluminum logistics the Company has built initial end-to-end logistics capabilities

from West African mines to aluminum processing plants. By integrating multimodal transport

capacity and consolidating cargo at both ends it has developed a branded bulk shipping route

connecting the Atlantic and the Far East.

5. Key Operating Plans for H2 2025

While achieving phased results in the first half of the year the Company remains keenly aware of

the slowing pace of global economic recovery profound shifts in industry competition and its

position in a critical phase of transformation and upgrading. At this new starting point with

management succession underway and strategic development about to enter a new stage the

Company will not only maintain strategic focus but also strengthen risk awareness and

continuously cultivate new competitive advantages. In the second half of the year to ensure the

successful conclusion of the last Five-Year Plan (2021–2025) and lay a solid foundation for the

17formulation and implementation of the next Five-Year Plan (2026–2030) the Company will

continue to consolidate hard-won achievements and focus on the following key tasks in strategic

development organizational management business operations international expansion risk

control investment research support and digital-intelligent transformation:

Strategic Development: On one hand the Company will solidly advance the conclusion of the

last Five-Year Plan(2021–2025) ensuring high-quality achievement of all key targets; on the other

hand it will complete the formulation of the next Five-Year Plan (2026–2030) laying a solid

foundation for a new phase of high-quality development.Organizational Management: The Company will systematically advance the transformation of

its headquarters governance model and facilitate the integration of industrial sub-groups

progressively building an organizational structure that aligns with its development strategy for the

next Five-Year Plan period (2026–2030).Business Operations: The Company will deeply integrate into the industrial chain ecosystem

strengthen the comprehensive supply chain service system enhance control over critical resource

channels accelerate the adjustment of low-efficiency businesses and cultivate innovative

businesses to drive structural transformation and upgrade. The Company will also coordinate

internal and external resources strengthen cross-functional collaboration and build distinctive

core capabilities and service brands.International Development: First the Company will accelerate the establishment of overseas

platforms in key regions such as Africa and South America effectively leveraging them as

regional support hubs and forward bases. Second it will expedite the recruitment and

development of international talent strengthen local overseas teams and deeply explore regional

business opportunities. Third the Company will deepen international research efforts focusing on

key regions including Africa Central Asia the Middle East and Southeast Asia to identify project

opportunities in areas such as mineral resources and logistics hubs..Risk Management: The Company will establish quantitative risk management standards and

cross-departmental coordination mechanisms strengthen overseas compliance oversight and

promote the transition to a “Dynamic Risk Management + Value Creation” model.

18Investment Research Support: The Company will focus on the second growth curve and

strengthen research on industrial cycles identifying profit growth opportunities in areas such as

mining rights investment international expansion and new business incubation.Digital-Intelligent Transformation: The Company will promote the Phase II rollout of its

next-generation ERP system to enhance full-chain visibility and dynamic management improving

overall operational efficiency. It will also promote deep collaboration between AI-enabled

intelligence and supply chain operations establishing an end-to-end closed-loop intelligent

ecosystem from customer demand response to high-quality delivery thereby unlocking AI’s core

capabilities in enhancing supply chain resilience and value creation.

6. Outlook on the New Strategic Plan

In the new five-year strategic planning period (2026–2030) the Company envisions becoming a

global leader in industrial chain operations driven by supply chain services guided by the mission

“Rooted in the Supply Chain Serving the Industrial Chain Creating the Value Chain”. The

Company will focus on the “Three New One High (3N1H)” strategy- adopting a new industry

positioning as a co-builder and organizer of the industrial chain and embracing diversified capital

management approaches to foster high-quality growth. Based on the characteristics of different

industrial chains the Company will advance multi-faceted operations across resources trade

logistics services processing and investment in a phased and structured manner generating new

development momentum distinctive to Xiangyu. Through the reshaping of organizational

capabilities the Company will form specialized industrial sub-groups and drive high-quality

development.Figure 6: The Company’s “3N1H” Strategy

Looking ahead the Company will pursue proactive capital deployment leveraging industrial

investments to enhance its supply chain operating capabilities and unlock asset value. First it will

target key nodes within existing industrial chains to secure access to core resources continuing to

19drive industrial chain operations through supply chain services. Second it will actively participate

in strategic equity investment of industry leaders leveraging equity participation to secure

commercial rights and strengthen channel control. Third it will accelerate the development of the

Company’s second growth curve through investments in mining rights international expansion

and new business incubation. Fourth it will establish industrial funds around key strategic or

industrial chain investment projects introducing external capital to amplify scale and accelerate

growth.Table 2: Comparative Overview of the Company’s Strategic Plans at Different Stages

2021–20252026–2030

Period

(the last “Five-Year” Plan Period) (the next “Five-Year” Plan Period)

The Company aspires to become a global leader in

The Company aims to become a

industrial chain operations driven by supply chain

world-class integrated supply chain

services establishing a new industry positioning as a

service provider achieving the transition

Positioning co-builder and organizer of industrial chains and

from traditional trade to integrated

advancing the upgrade of a multi-element operation

services and initially exploring themodel integrating “Resources Trade Logisticssupply chain operation model.Services Processing and Investment.”

The Company has identified The Company proposes the "3N1H" strategy promoting

platformization internationalization and multi-element operations-covering resources trade

Strategic digitalization as its key development logistics services processing and investment-through a

Direction directions with a focus on enhancing diversified profit-oriented asset management mindset

comprehensive supply chain service establishing specialized industrial sub-groups and

capabilities. driving high-quality development.The Company has enhanced its The Company plans to establish a “strategic-controlOrganizatio market-oriented and professional service headquarters + specialized industrial sub-groups”

nal capabilities by establishing an internal structure to strengthen resource integration and

Structure competition mechanism. coordination aiming to enhance overall operational

performance.The Company will enhance the overall returns across all

links of the industrial chain entering higher value-added

The Company has prioritized service- and segments and leveraging an asset management mindset

Profit scale-driven profitability and has also to capture gains from resources productive services

Structure capitalized on price differentials to industrial investments and global arbitrage thereby

generate profits. further diversifying risks from commodity market

fluctuations and improving both profitability and

stability.The Company has focused on its core The Company will engage in multi-element industrial

Growth industrial chain expanded its market chain operations participating in the management of all

Drivers leadership in key products and segments along the chain. Through proactive

established itself as a leader in niche investments it aims to accelerate the development of its

202021–20252026–2030

Period

(the last “Five-Year” Plan Period) (the next “Five-Year” Plan Period)

markets; it has also targeted regions along second growth curve including investments in mining

the Belt and Road Initiative developing rights international expansion and new business

its international markets. incubation. By implementing industrial fund projects

the Company seeks to leverage capital to achieve

larger-scale and faster-growing development.V. Analysis of Core Competitiveness During the Reporting Period

1. Networked Logistics Service Capability

As a national 5A-level logistics enterprise the Company has developed three key logistics

operating entities-Xiangyu Superchain Xiangdao Logistics Xiangyu Agricultural Products- and

built a top-tier logistics service team characterized by professionalism market orientation and

international expertise. With resource integration as its foundation product upgrading as its

driving force deep industry engagement as its core and digital intelligence innovation as its

enabler the Company has established a fully connected logistics ecosystem. This ecosystem

embodies an interconnected and dynamically evolving logistics service model delivering efficient

reliable and highly resilient supply chain logistics solutions to clients worldwide.Figure 7: Company’s Logistics Ecosystem

The company implements the strategic path of “Checkpoints-Link-Surface-Network”

comprehensively integrating core logistics elements such as highways railways waterways and

21warehouses. Taking the lead in the industry it has built an efficient multimodal transport system

centered on these hubs forming a three-dimensional logistics resource network connecting

domestic and international markets. Currently the Company has established a railway network

spanning the east-west economic corridor and connecting north-south industrial nodes a highway

transport matrix covering the nation’s core economic regions a waterway transport layout based

on domestic hub ports and extending along the Belt and Road Initiative and an intelligent

warehousing cluster covering the eastern coast and bulk commodity distribution belts in central

and western China. Simultaneously it has developed an international shipping and rail corridor

network along with localized overseas operations linking global markets. Domestically the

Company has enhanced navigation capacity along the Yangtze River main waterway forming a

“River-Sea Intermodal + Main-Branch Linkage” water transport system and launching multiple

premium routes such as the inter-provincial aluminum circulation corridor North-to-South Grain

Transport West-to-East Coal Transport and North-to-South Coal Transport achieving efficient

integration of land and water transport. Internationally it has established China-Europe and

China-Central Asia international rail corridors as well as international logistics routes including

China-Indonesia China-Vietnam China-Thailand China-Africa and China-Australia creating a

three-dimensional transport network covering major economic regions worldwide.The Company provides clients with high-quality end-to-end and scenario-based industrial

logistics solutions effectively supporting the resilient operation of industrial supply chains and

enabling efficient logistics value realization. During the reporting period the Company handled

over 26 million tons of coal logistics and under the market-oriented reforms of China State

Railway Group implemented 14 railway logistics turnkey projects helping clients reduce coal

railway transportation costs by 10%-25%. The Company handled approximately 6.7 million tons

of aluminum logistics establishing multiple premium rail-road intermodal routes for alumina.Meanwhile leveraging its ultra-large-scale business flow pool extensive service cases and rich

data assets accumulated across business scenarios the Company continuously iterates and

optimizes logistics service solutions meticulously developing global premium logistics corridors.

22Figure 8: Company's Nationwide and International Networked Logistics Service Ecosystem

2. Digitalized Supply Chain Service Capability

The Company is committed to leading the way in smart supply chain services and serving as afrontrunner in the industrial Internet. Built on a three-pronged capability system of “strategicresources channel networks and solutions” and leveraging vast business data an extensive

customer base and rich application scenarios the Company integrates AI to create an end-to-end

intelligent ecosystem that seamlessly links customer demand response with secure final delivery.The Company leverages its digital platform as the foundation to address the pain points of

traditional bulk commodity supply chains including low efficiency challenging decision-making

and weak collaboration. During the reporting period it successfully launched the pilot of its

next-generation core system for bulk commodity supply chains ensuring comprehensive coverage

of core trade documents and data assets and building an intelligent management and operation

support framework. Meanwhile the Company has deeply integrated artificial intelligence

embedding smart computing capabilities into scenarios such as decision analysis intelligent

recognition and risk warning making the entire supply chain visible manageable and traceable

ensuring real-time business tracking with transparent well-controlled processes and forming a

closed-loop intelligent supply chain. Furthermore the Company continued to upgrade its

23“YuLianTong” digital supply chain service platform securing a total credit line of RMB 11.9

billion. The platform serves as a trusted data bridge between funding providers and customers.Figure 9: YuLianTong Digital Supply Chain Service System

Leveraging digital technologies such as artificial intelligence big data and the Internet of

Things(IoT) the Company will further enhance supply chain collaboration including internal

coordination external collaboration and upstream-downstream integration. It aims to build a

green efficient safe and resilient digital ecosystem across the industrial chain providing

comprehensive end-to-end solutions for intelligent supply chains and injecting new momentum

into the high-quality development of both the Company and the industry.

3. Global Channel and Resource Integration Capability

The Company has accumulated a portfolio of leading enterprise clients across the industrial chains

of metals and minerals agricultural products energy and chemicals and new energy establishing

mature and stable global business channels. By integrating abundant industrial informational

logistics and financial resources the Company delivers comprehensive supply chain solutions to

its clients. Leveraging years of deep industry experience and channel advantages the Companyhas developed a global development framework characterized by “supply chain leadershiplogistics support and investment-driven growth” underpinned by strong global channel networks

and resource integration capabilities.First the Company extends along key industrial chain nodes continuously building internationally

competitive regional ecosystems. In Africa it has built a mineral resource supply chain system

24ensuring stable supply of bauxite and titanium in West Africa as well as chrome in South Africa; it

has invested in establishing a West African subsidiary and an East African mining joint venture to

strengthen access to new energy minerals; furthermore it is advancing the establishment of a

regional subsidiary in South Africa to extend the industrial chain and enhance value through

localized operations. In Southeast Asia the Company has developed a full industrial chain model

covering resource import deep processing and global sales supported by a localized logistics

network delivering end-to-end one-stop services in the ASEAN market. In the Americas the

Company deepens cooperation in minerals agricultural products energy trade and new energy

and is preparing to launch a Brazilian platform to strengthen regional market presence. In theMiddle East it focuses on high-value commodities to accelerate the global penetration of “Madein China”. In resource-rich countries such as Australia the Company builds stable and diversified

supply channels to safeguard national energy and resource security.Second the Company systematically advanced global logistics capabilities. Focusing on the

outbound needs of Chinese manufacturing and the development of core industries it strategically

deployed operations in Southeast Asia Africa and South America to establish a global logistics

service network. The Company extended the presence of overseas logistics subsidiaries and joint

ventures including investment in a shipping joint venture in Guinea during the first half of the

year leveraging trade-logistics synergies. Capitalizing on its advantages in international

multimodal transport it established core logistics corridors connecting China with Southeast Asia

Africa South America and Europe/Central Asia maintaining a leading market share on the

Indonesia-Sulawesi-China route and pioneering multimodal connections across East West and

Southern Africa.. Innovative bulk shipping routes have also been developed for commodities such

as lithium and chromium in Africa. The Company continuously optimized its global logistics

network collaborating with over 200 high-quality international logistics providers operating more

than 150 overseas warehouses including locations in Vietnam the United States and the

Netherlands.

4. Systematic Risk Management Capability

The Company has long upheld the business philosophy of “Risk First Profit Second Scale Third”.It implements a three-layered risk defense framework encompassing frontline business teams the

25headquarters risk management function and the central audit unit. By establishing pre-control

systems in-process monitoring post-event review and system optimization as well as maintaining

a balanced focus on collaboration and professionalism the Company has built a

multi-departmental risk prevention and control mechanism.In addition the Company consistently focuses on highly liquid easily monetizable standardized

and easily stored commodities as its core products. It has developed a comprehensive full-cycle

risk management system encompassing pricing marketing research and customer management

embedding risk control deeply throughout the entire business lifecycle.Against the backdrop of a complex and volatile international trade environment and intensifying

market competition the Company continues to improve its mechanisms for policy analysis risk

identification and early warning in international markets. It closely monitors and assesses changes

in international policies and regulations developing targeted response strategies based on specific

business conditions.

5. Multidimensional Industry Research Capability

The Company strengthens the enabling role of its three-tiered research system in supporting

business practice conducting in-depth analyses at the macro industry and micro levels to study

market cycles industry trends and key commodity price fluctuations. Combining deep industry

experience with expertise in financial tools the research team delivers insights across multiple

dimensions such as frontline operational strategies business model innovation and corporate

strategies. By aggregating and analyzing internal and external data the Company develops a more

comprehensive market perspective. In addition it enhances cross-departmental collaboration and

continuously improves the research-risk management linkage enabling timely warnings and

effective responses to market fluctuations caused by macroeconomic uncertainties thereby

enhancing overall risk management capabilities.

6. Specialized Supply Chain Service Team

The Company places strong emphasis on talent development and team building cultivating a

market-driven specialized and globally-oriented supply chain service team capable of designing

professional supply chain solutions tailored to customer needs. Meanwhile the Company

26consistently enhances its international human resources system providing clear career pathwaysand platforms for value creators and follows a dual approach of “external recruitment and internalcultivation”. In the first half of 2025 the Company actively recruited domestic and international

business talents along with supporting measures to ensure project implementation accelerate

integration and performance realization building a pipeline of elite professionals with global

vision and service expertise.

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