Stock Code: 600057 Stock Abbreviation: Xiamen Xiangyu

Xiamen Xiangyu Co. Ltd.2026 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

Changes compared

At the end of At the end of last

Item to the end of last

reporting period year

year (%)

Total assets 136134.73 128697.05 5.78

Owner’s equity attributable to

the shareholders of the listed 32490.46 31653.38 2.64

company

Current reporting The same period Changes on a YoY

period last year basis (%)

Operating revenue 209045.21 203948.25 2.5

Profit before income tax 1661.27 1504.18 10.44

Net profit attributable to

shareholders of the listed 1066.00 1032.12 3.28

company

Net profit attributable to

shareholders of the listed

941.79330.74184.75

company after deducting the

non-recurring profit and loss

Net cash flow from operating

-13866.11 -2985.79 Not applicable

activities

Weighted average return on Increased by

5.044.99

equity (%) 0.05 pp

Basic earnings per share

0.280.31-9.68

(Yuan/share)

Diluted earnings per share

0.280.31-9.68

(Yuan/share)

Remark:

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

reporting period includes the interest of RMB 286 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 780 million. Perpetual bonds and interest were

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

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

2II. Industry Analysis During the Reporting Period

1. Analysis of the Industry's Operating Conditions

In the first half of 2026 geopolitical uncertainty continued to escalate macroeconomic volatility

intensified significantly and the stability of the bulk commodity supply chain came under mounting

pressure. Guided by the Outline of the 15th Five-Year Plan industries associated with China’s new

quality productive forces continued to grow rapidly while the overall macro economy remained stable.However the recovery in end-market demand remained relatively weak domestic and overseas demand

for manufactured products diverged and supply chain enterprises faced increasing pressure on

profitability.Against a backdrop of mounting operating pressures and structural transformation across the industry

leading enterprises continued to evolve toward diversified global operations and higher value-added

industrial supply chain services. By leveraging digitalization and AI applications they strengthened

operational resilience and fostered new sources of profitability. Amid the restructuring of global

industrial supply chains and the transformation of China’s domestic industrial structure these enterprises

sought to capitalize on structural growth opportunities build core competitive advantages that support

sustainable high-quality long-term development and strengthen their resilience for future growth.

2. Industry Development Trends

(1) Industry Reshaping: Rising Industry Concentration

Global economic and geopolitical uncertainties have increased operating challenges across the industry

while tighter regulatory compliance requirements in China have accelerated the exit of smaller market

participants. Leading enterprises have enhanced their resilience through counter-cyclical expansion

through diversified and synergistic business development continuously enhancing their upstream and

downstream channel networks and strengthening their capabilities in resource control customer retention

service enhancement and risk management. As a result leading enterprises have continued to increase

their market share. Measured by cargo volume the CR51 market share2 of China’s bulk commodity

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.

3supply chain industry increased from 4.81% in 2021 to 6.24% in 2025. Despite the industry’s fragmented

market structure the trend toward greater market concentration among leading enterprises is clear and

well established.Figure 1：Operating Volume and Market Share of CR5 Figure 2：the Company’s Revenue and Market Share

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

(2) Model Upgrading: Deepening Full-Industry-Chain Operations

As the competitive landscape continues to evolve the focus of market competition is shifting from

capabilities in individual segments toward comprehensive competition across the entire value chain.Leading enterprises are strengthening their upstream resource presence expanding into midstream

processing and extending downstream into end-consumer markets while complementing these efforts

with integrated services and industrial investment. By fostering synergies across multiple business

segments they are deepening full-industry-chain operations enhancing end-to-end service capabilities

and customer stickiness diversifying their earnings mix and strengthening the drivers of sustainable

growth.

(3) Global Expansion: New Growth Curves Emerging

The regional restructuring of global manufacturing capacity is driving growing demand for overseas

procurement and sales logistics and cross-border financial services. Industry players are accelerating

their international expansion and broadening their operations across key resources logistics hubs

manufacturing support services investment in emerging industries and supply chain finance seeking to

capture new growth opportunities. At the same time escalating geopolitical conflicts rising resource

nationalism and the increasing trade and compliance barriers associated with deglobalization are

exposing traditional long-chain cross-border supply chains to greater risks of disruption and policy

4uncertainty. Relying solely on domestic ports and transit hubs is no longer sufficient to ensure supplychain autonomy and control prompting industry players to shift from a “gateway-based overseasexpansion” model toward “localized operations”. This involves establishing regional headquarters

operating centers and forward warehouses in key overseas markets and resource-rich regions while

building local business teams to mitigate geopolitical risks.

(4) Demand Evolution: New Quality Productive Forces Driving Demand Upgrades

The rapid development of the AI industry is shifting the focus of strategic competition among major

economies toward computing power and data driving explosive growth in related industries and has

emerged as a key force reshaping the global economic landscape. The expansion of computing-power-

driven industries is fundamentally reshaping the underlying demand dynamics of bulk commodities. On

the one hand it is generating structurally incremental demand for critical metals such as copper

aluminum and rare earths in data centers grid upgrades and intelligent devices giving these commodities

new sources of structural growth. On the other hand AI’s substantial energy consumption is also

increasing demand for power-related fuels and supporting resources.

(5) Technology Enablement: Digitalization Intelligence and Low-Carbon Transformation

Creating New Value

Leading enterprises are increasingly establishing AI application platforms and exploring the application

of AI technologies across key business scenarios including intelligent risk management collaborative

services demand forecasting and pricing management thereby enhancing supply chain resilience and

value creation capabilities. Meanwhile the global transition toward green and low-carbon development

is accelerating with innovative sectors such as carbon trading green electricity trading and green

logistics gaining strong growth momentum. Leveraging their strengths in integrated services leading

enterprises are supporting the development of these emerging sectors and growing in tandem with them.III.Business Analysis During the Reporting PeriodThe Company specializes in bulk supply chain services. Guided by its mission of “Rooted in the SupplyChain Serving the Industrial Chain Creating the Value Chain” the Company focuses on its “Three Newand One High” strategy adopts a new strategic position in industrial chains develops a new asset-

management mindset and advances a new multi-factor operating model. By reshaping organizational

5capabilities the Company is committed to driving high-quality development and becoming “a globalleader in industrial chain operations driven by supply chain services”.

1. Business Model

The Company has always placed manufacturing customers at the core of its business and expanded

resources upstream and channels downstream along industrial chains. It has evolved from providing

services in individual segments to offering an integrated suite of services including raw material

procurement finished product distribution inventory management warehousing and logistics and

supply chain finance. Through these efforts the Company has gradually established a full-industry-chain

supply chain service model featuring Xiangyu’s distinctive capabilities.Having established service advantages across the entire industry chain the Company has further

expanded into manufacturing segments where it can provide value-added support initially developing

an industrial chain operating model combining “supply chain services + manufacturing.” This model

enhances overall returns and helps mitigate the impact of cyclical fluctuations in the industries in which

the Company operates.

2026 marks the first year of the Company’s new five-year development plan for 2026–2030. Adopting a

new strategic position as “a co-builder and orchestrator of industrial chains” the Company is exploring

opportunities across key segments of industrial chains including resources trading logistics services

processing and investment while applying an asset-management mindset to the operation of each

segment and developing a multi-factor operating model.

6Figure 3：Company's Business Model

2. Business Portfolio

Under its multi-factor synergy strategy the Company has established a “6+1” business portfolio

comprising six major commodity segments—steel non-ferrous metals energy new energy chemical

materials and agricultural products—together with its logistics business. This diversified portfolio helps

mitigate the risks arising from cyclical fluctuations in individual industries while enabling the Company

to capture growth opportunities at different stages of industry development.

7In terms of commodity portfolio based on customer needs and its own business philosophy the Company

applies the following product selection criteria: * high liquidity and ease of realization; * high

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

integrated multi-stage services.Currently the Company’s commodity portfolio covers seven core categories: ferrous metals aluminum

stainless steel new energy thermal coal oil and grains. The Company dynamically adjusts its

commodity mix in response to changes in industry cycles. Looking ahead along the growth trajectory

driven by demand from the AI industry chain and the development of new quality productive forces the

Company will explore opportunities in higher value-added categories including metals related to the

computing-power industry chain advanced materials strategic minerals and emerging energy sources.Figure 4: The Company's "6+1" Business Figure 5: Revenue Proportion of the Company's

Portfolio Bulk Commodities by Category

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

approximately 60% of total service volume in the first half of 2026. Specifically over 70% of services

were within the new energy supply chain; over 60% within the aluminum stainless steel and coal supply

chains; approximately 60% within the ferrous metals supply chain; and approximately 50% within the

oil and chemical products and grains and agricultural commodities supply chains.

3. Profit Model

As the Company steadily advances its multi-factor operating model it has developed a diversified profit

structure comprising trading spread income industrial chain service income production-related service

income and industrial investment income enabling it to identify and capture value opportunities across

industry cycles. The components of the Company’s profits and their definitions are set out in the table

below.Table 1: Profit Structure and Definitions

8Operating Element Types of Profit Corresponding Business Activities

Income from

Strengthening the upstream positioning in key resources to secure stable

Resources Resource

access to commodity rights

Acquisition

Supply chain service

income and scale-

Leveraging platform advantages to conduct large-scale operations and provide

based consolidation

Trading integrated supply chain services including procurement distribution and

gains supplemented

logistics

by trading spread

gains

Logistics Service Building a multimodal transportation logistics network and smart supply

Logistics

Income chain platform to provide integrated logistics solutions

Production-related Providing manufacturing customers with services including digital solutions

Services

Service Income energy management carbon management and price management

Processing and

Manufacturing Leveraging supply chain service capabilities to participate in key processing

Integrated Trading

Income and and manufacturing segments and achieve synergies between trading and

and Manufacturing

Supporting Trading manufacturing

Income

Focusing on key segments of strategically selected industry chains and high-

Investment Investment Income potential and emerging sectors to implement strategic investment and

incubation and cultivate value across industry cycles

IV.Management Discussion and Analysis of Business Operation

In the first half of 2026 amid a complex and rapidly evolving external environment the Company rose

to the challenge by consolidating its existing business foundation while expanding new growth drivers.At the same time the Company dynamically optimized its risk management strategies and effectively

managed the impact of futures price fluctuations on its gross margins from spot and futures trading.Overall the Company maintained sound and improving operating performance and made a strong start

to its new five-year development plan for 2026–2030.During the reporting period the Company achieved operating volume of 133 million tonnes representing

a year-on-year increase of 10.41%; operating revenue of RMB 209 billion representing a year-on-year

increase of 2.50%; net profit attributable to shareholders of the Company of RMB 1.07 billion

representing a year-on-year increase of 3.28%; and net profit of RMB 1.52 billion representing a year-

on-year increase of 19.40%. Both the gross profit margin and net profit margin s increased year on year.The Company maintained leading market shares in commodities including aluminum new energy

products thermal coal and coking coal/coke. Its iron ore operating volume increased significantly

9further strengthening its industry position and resource access advantages. The Company also made

initial progress in leveraging supply chain services to drive industrial chain operations.

1. Key Operating Results for the First Half of 2026

The Company steadily advanced its multi-factor operating model and coordinated development across

multiple business segments including resources trading logistics services integrated trading and

manufacturing and investment. Currently the Company’s business scale and profit contribution are

primarily derived from the trading logistics and integrated trading and manufacturing segments. The

resources and services segments remain in the early stages of development and account for relatively

small proportions of business volume and gross profit but are primarily contributing incremental

business growth. The investment segment while supporting the development of other business segments

also recorded an increase in investment income year on year.

(1) Resources Services and Investment Segment

Resources. Focusing on major mining regions globally the Company has strengthened its control over

upstream resources and secured stable supply through mechanisms such as equity investment for

commercial rights and services for commercial rights. During the reporting period the Company’s

operating volume from stable mine supply exceeded 5 million tonnes representing a year-on-year

increase of over 70%. The Company established a Resources Division and developed an in-house mine

investment development and management system. Its wholly owned nickel mine in Indonesia entered

construction stage and is expected to commence production in 2027.Services. Leveraging its supply chain management capabilities the Company provides production-

related services including the “YuLianTong” digital supply chain service platform (please refer to

Section V “Analysis of Core Competitiveness During the Reporting Period” subsection 3 “DigitalizedSupply Chain Service Capability”) carbon trading green electricity trading and service-oriented leasing

thereby enhancing customer stickiness and value-added services. Meanwhile the Company has enhanced

its price management services further developed option-based business models and expanded into

overseas options markets to diversify its sources of value creation and build differentiated competitive

advantages and momentum for medium- and long-term growth.

10Investment. The Company carries out strategic investment centered on industrial chains to capture

opportunities for cross-cycle positioning and value investing. It has established a joint venture for power

plant investment and operation participated in the strategic placement for the IPO of Makeng Mining

Co. Ltd. to lock in commercial rights to high-quality iron ore resources and launched strategic

cooperation in areas including mineral resource development and supply chain. During the reporting

period investment income from long-term equity investments exceeded RMB 100 million representing

a year-on-year increase of more than 35%.

(2) Trading Segment

The Company leverages its bulk commodity supply business as the foundation capitalizes on its platform

advantages to operate at scale and provides integrated supply chain services including procurement

distribution and logistics. Revenue and profit are reflected in the operating results of its core commodity

businesses as detailed below:

Unit: RMB billion

Combined Futures

Combined Futures and Spot

Operating Volume Operating Revenue and

Gross Profit Margin

Spot Gross Profit

Category

Volume

(10000 YoY Amount YoY Amount YOY Value YOY

metric tons)

Trading Segment 12813 8.85% 191.8 -0.05% 2.85 -2.31% 1.48% Decrease of 0.03 pp

Among these:

8095 18.79% 122.4 11.42% 3.23 94.07% 2.64% Increase of 1.12 pp

Metallic Mineral

Energy and Chemical 3941 -3.98% 39.3 -24.88% 0.55 21.21% 1.40% Increase of 0.53 pp

Agricultural Products 745 -8.71% 21.2 -4.77% 0.25 -53.77% 1.17% Decrease of 1.24 pp

New Energy 29 -17.72% 7.6 19.93% -1.19 N/A -15.53% N/A

Notes:

a. To support its physical supply chain operations the Company uses futures instruments to hedge against

commodity price volatility. As a result fair value changes and gains or losses on disposal are recognized. The

reported gross profit and gross margin on a combined spot-and-futures basis incorporate the impact of hedging

results from futures positions.b. During the reporting period taking into account its business operations and market conditions the Company

dynamically optimized its risk management strategies and proactively reduced the futures positions held for

hedging purposes. The resulting losses on the futures side were recognized in the current-period financial

statements.c. During the current period certain resource-related businesses previously included under “Bulk CommodityOperations” were reclassified to the “Resources” segment. The remaining businesses constitute the “Trading

11Segment” presented in the table above and the prior-period figures have been adjusted accordingly on a

comparable basis.Metal and mineral products. The ferrous metals supply chain reaped the benefits of organizational

restructuring optimized resource allocation and product mix deepened the integrated trading and

manufacturing model and accelerated its international expansion. It maintained counter-cyclical growth

despite the downward phase of the industry cycle with iron ore operating volume increasing 42% year

on year and steel operating volume increasing 14% year on year. The aluminum supply chain expanded

its access to overseas resources and downstream processing capabilities further deepened full-industry-

chain operations and maintained a leading market position in terms of operating scale with profitability

improving year on year. The stainless steel supply chain optimized its commodity mix actively expanded

its international business improved its nickel ore procurement channels and broadened its sources of

overseas ores including South Africa further strengthening its profitability.Energy and chemicals. The coal supply chain continued to deepen its international operations increased

the proportion of long-term contracts and overseas sales and achieved a 12% year-on-year increase in

operating volume with profitability improving year on year. Amid heightened fluctuations in

international oil prices resulting from escalating geopolitical conflicts the oil products supply chain

adopted a prudent approach to related activities resulting in a temporary contraction in operating scale.Agricultural products. The Company strengthened volume-based operations and inventory rolling

strategies deepened cooperation with strategic customers expanded its international operations and

broadened overseas sales channels for grains and edible oils. However spot-futures gross profit declined

year on year due to the temporary increase in corn procurement costs.New energy. In response to market conditions the Company enhanced the flexibility of its risk

management strategies and proactively adjusted its hedging strategy in the second quarter to mitigate the

impact of futures price fluctuations on spot-futures gross profit. Through systematic resource integration

and deepened industrial chain operations the Company continued to develop its presence in the three

major production regions of Australia South America and Africa as well as in Jiangxi Sichuan and

Qinghai leveraging its strengths in upstream mineral resources smelting and processing and logistics

to put the business back on a path of stable and sound development.

(3) Logistics Segment

12While the Company’s logistics system serves the needs of its internal supply chain operations it also

leverages its internal business base to develop market-oriented service capabilities which in turn support

and enhance its supply chain operations creating a mutually reinforcing relationship between commodity

operations and logistics services. The Company separately accounts for the operating results of its

market-oriented logistics services as detailed below:

Unit: RMB million

Operating Revenue Gross Profit Gross Profit Margin

Category

Amount YoY Amount YoY Value YoY

Logistics Segment 5733 14.74% 473 10.90% 8.25% Decrease of 0.29 pp

Among these:

4183 2.60% 326 -5.70% 7.79% Decrease of 0.69 pp

1. Professional Logistics

1.1 Integrated Logistics 3015 14.61% 269 -4.85% 8.92% Decrease of 1.82 pp

1.2 Railway Logistics 1169 -19.23% 57 -9.51% 4.88% Increase of 0.52 pp

2. Industrial Logistics 1550 68.63% 147 81.85% 9.49% Increase of 0.69 pp

2.1 New Energy Logistics 594 -1.11% 46 -22.65% 7.71% Decrease of 2.51 pp

2.2 Aluminum Industry Logistics 593 181.35% 69 668.09% 11.63% Increase of 7.37 pp

2.3 Agricultural Products Logistics 363 236.80% 32 154.55% 8.89% Decrease of 2.87 pp

Note:

a. Railway logistics agricultural logistics and aluminum industry logistics refer to the market-oriented logistics

services provided by the Company’s subsidiaries Xiangdao Logistics Xiangyu Agricultural Products and

Xiangyu Aluminum Union respectively.b. Integrated logistics refers to the market-oriented logistics services offered by Xiangyu Superchain and other

logistics subsidiaries primarily including international shipping routes cross-border rail freight services inland

waterway transport highway transportation and domestic and overseas warehousing.c. During the current period the service-oriented leasing business previously included under “Bulk CommodityLogistics” was reclassified to the “Services” segment with the remaining businesses forming the basis for the

“Logistics Segment” figures presented in the table above. The prior-period figures have been adjusted

accordingly on a comparable basis.A. Professional Logistics

Integrated Logistics. The Company continued to expand its customer base in industrial sectors by

promoting synergies between commodity trading and logistics. It consolidated its advantages in key

logistics routes and hubs connecting China with Southeast Asia Africa South America Europe and

Central Asia continued to expand its nationwide network of delivery warehouses and broaden the range

of commodities eligible for delivery. Business volume grew steadily. However rising fuel procurement

13costs driven by geopolitical conflicts and intensifying industry competition compressed the segment’s

profitability resulting in a decline in gross profit.Railway Logistics. While continuing to deepen its operations in core commodities such as coal and

aluminum the Company actively developed higher value-added businesses including multimodal rail

transportation and warehousing services optimized the allocation and utilization of logistics resources

and consolidated its advantages on existing routes. Gross profit margin increased year on year. Gross

profit declined year on year due to changes in business mix.B. Industrial Logistics

New Energy Logistics. Focusing on Southeast Asia and Africa the Company expanded into the South

American market while consolidating its existing advantages in logistics routes. Gross profit declined

amid rising costs of international shipping services.Aluminum Industry Logistics. The Company accelerated the development of overseas logistics hubs

in Southeast Asia and East Africa around emerging production regions and expanded into West African

hubs supporting the growth of business volume. Meanwhile it continued to strengthen its in-house

transportation capacity and significantly improved gross profit by diversifying its transportation capacity

mix.Agricultural Products Logistics. The Company deepened multi-party cooperation and expanded

transportation services for new commodity categories. The overall transportation volume along the

“North-to-South Grain Transportation” routes increased steadily driving growth in business scale and

revenue. As the gross profit margin of agricultural products transportation services is lower than that of

warehousing services the overall gross profit margin of the Agricultural Products Logistics segment

declined year on year. Nevertheless gross profit continued to increase significantly year on year.

(4) Integrated Trading and Manufacturing Segment

Building on its established competitive advantages in full-industry-chain services the Company

selectively expanded into manufacturing segments where it could create mutual synergies promoting

deeper integration between supply chain services and physical manufacturing optimizing its overall

earnings mix strengthening operating resilience and mitigating the impact of industry cycles. The

operating results for the current period are as follows:

14Unit: RMB million

Operating Revenue Gross Profit Gross Profit Margin

Category

Amount YoY Amount Amount YoY Amount

Integrated Trading and

7659 44.95% 921 58.51% 12.02% Increase of 1.03 pp

Manufacturing Segment

Among these:

4796 50.24% 870 84.93% 18.15% Increase of 3.40 pp

Shipbuilding

Note: The manufacturing segment comprises shipbuilding beneficiation grain and oil processing and steel

processing. The shipbuilding business is operated by the Company's subsidiary Nantong Xiangyu Shipbuilding &

Offshore Engineering.The shipbuilding business significantly enhanced its brand recognition in the global markets for mid-

sized bulk carriers and specialized chemical tankers while increasing the proportion of higher value-

added products. Its product portfolio expanded from small and mid-sized bulk carriers to a more

diversified range including large bulk carriers specialized chemical tankers and multipurpose heavy-lift

vessels. Green and low-carbon vessel designs also continued to evolve. Following the completion of the

renovation and upgrade of the Qidong Shipyard production capacity has been steadily ramped up while

vessel delivery cycles have continued to shorten. During the reporting period the Company delivered 14

vessels and secured 32 new orders. As of the end of June 2026 the Company had 148 vessels in its order

book.

2. Key Management Achievements for the First Half of 2026

The Company closely aligned its management initiatives with the strategic priorities of its new five-year

development plan for 2026–2030 and achieved significant progress in organizational transformation

investment and research capabilities performance assessment and incentives risk management and

digital and intelligent enablement.First organizational transformation has unlocked new vitality. The Company accelerated the

establishment of its “6+1+3”3 business organizational structure including the establishment of a

Logistics Industry Group an International Business Division and a Resources Division while deepening

the integration of businesses and teams within the Agricultural Products and Mineral & Energy sub-

3 The “6+1+3” structure refers to six industrial sub-groups—Steel Non-ferrous Metals Energy New Materials

New Energy and Agricultural Products—plus one Logistics Industry Group and three business divisions covering

Derivatives Internationalization and Resources.

15groups. The Company also developed a strategic management-oriented headquarters streamlined

management layers and simplified approval processes to improve organizational efficiency.Second a strengthened investment and research system has enhanced business support. The

Company developed multi-frequency investment research reports covering four key areas—risk alerts

price warnings strategy recommendations and business enablement—to support business development

through research and analysis. Guided by strategic implementation the Company identified investment

opportunities across industrial chains while strengthening the breadth and depth of post-investment

project evaluations to drive operational improvements or orderly exits from existing investments.Third performance assessment has driven strategic execution. Closely aligned with the Company’s

“6+1+3” business organizational structure and its multi-factor operating model covering resources

trading logistics services integrated trading and manufacturing and investment the Company

systematically revamped its incentive model to create a dual focus on short-term performance and long-

term value. The Company also enhanced team performance assessment schemes tailored to different

business models with a focus on strategic execution.Fourth strengthened risk management has safeguarded business development. The Company

strengthened dynamic and in-depth credit management of customers and business counterparties as well

as customer concentration management. It established an integrated price risk management framework

comprising a price management system price management standards and closed-loop monitoring of

price risks. The Company also established a comprehensive risk inventory focusing on key areas and

critical processes to respond rapidly to market disruptions.Fifth digital and intelligent technologies have enhanced quality and efficiency. The Company

achieved breakthroughs in multiple AI application scenarios including multimodal transportation

solutions ocean freight rate analysis price forecasting vehicle-cargo matching and alerts for abnormal

events during logistics operations. Meanwhile the Company advanced its top-level AI planning

strengthened risk management through a digital foundation and leveraged digital and intelligent products

to enhance industrial chain operations.V. Analysis of Core Competitiveness During the Reporting Period

1. Global Channel and Resource Integration Capabilities

16The Company proactively aligns with the ongoing restructuring of global supply chains and has

cultivated a portfolio of high-quality leading customers across industrial chains such as metal minerals

agricultural products energy and chemicals and new energy thereby establishing a mature and stable

global business network. By integrating diversified resources—including industrial information

logistics and financial resources—the Company delivers integrated supply chain solutions to its

customers. Leveraging years of deep industry expertise and well-established channel advantages theCompany has developed a global development framework characterized by “supply chain leadershiplogistics support localized operations and investment-driven growth” and has built strong capabilities

in global channel development and resource integration. During the reporting period the Company

remained focused on its internationalization strategy and accelerated the expansion of its business

segments into overseas markets. International business volume exceeded 50 million tonnes with total

international business value reaching approximately US$12.3 billion.Figure 6: Company’s Global Business Footprints

First a well-established global supply chain ecosystem. The Company continued to develop emerging

markets in Southeast Asia Africa Latin America and countries along the Belt and Road. In Southeast

Asia capitalizing on industrial relocation and upgrading driven by resource endowments and industrial

policies the Company developed end-to-end supply chain service systems across the stainless steel

17aluminum steel and photovoltaic industry chains. In Africa the Company developed mineral resource

supply chains securing stable supplies of bauxite and titanium ore from West Africa; its mineral

processing services in Nigeria covered more than 90% of the market while its lithium ore services

supported leading new energy companies. In Latin America the Company deepened trade and economic

cooperation in minerals agricultural products and energy while establishing a distribution network

covering major consumer markets in Europe and the Middle East.Second a well-developed global logistics network. Focusing on resource-rich regions where

infrastructure remains relatively underdeveloped the Company has adopted a “logistics-first”

internationalization strategy providing integrated customs clearance warehousing and distribution

services to customers in China and overseas. It has established key logistics corridors connecting China

with Southeast Asia Africa and South America with the Indonesia Sulawesi–China and China–West

Africa routes maintaining leading market positions. The Company has established partnerships with

more than 200 high-quality international logistics providers maintains more than 70 overseas

warehousing nodes on a regular basis and has strategically planned more than 150 nodes providing

customers with efficient and reliable supply chain service support.Third strengthened localized capabilities for global operations. The Company established an

International Business Division to strengthen organizational support and build and continuously enhance

its professional capabilities for international operations. During the reporting period the Company

accelerated the development of overseas platforms in key regions. Building on its established platforms

in Hong Kong Singapore Indonesia and Vietnam the Company strengthened the capabilities of its

Brazil platform and steadily expanded the business scale of its South Africa platform. The number of

overseas subsidiaries increased to 52. Local operations expanded into additional commodity categories

while international business continued to enrich its service scenarios and operating models extending

from trading and logistics coordination to integrated services including localized operations and

industrial support.Looking ahead the Company will pursue acquisitions or equity investments in upstream and downstream

segments of its existing industry chains and industries targeted for future development focusing on core

mineral resources key production and processing nodes and critical logistics assets. These initiatives

are expected to further expand the Company’s international footprint and establish a second growth curve.

182. Networked Logistics Service Capabilities

As a nationally recognized 5A-level logistics enterprise the Company leverages its multimodal logistics

capabilities across highway railway waterway and warehousing together with its resource integration

strengths to accelerate the coordinated development between professional logistics and industrial

logistics. With logistics resources as its foundation product enhancement as its driver and deep industry

engagement as its core the Company continues to build a funnel-shaped logistics ecosystem that enables

two-way value creation between capability development and commercial realization and connectivity

across the entire operating network supported by a growing pool of business flows. Through this

ecosystem the Company provides global customers with efficient reliable and resilient supply chain

logistics solutions.Figure 7: The Company’s Funnel-Shaped Logistics Ecosystem

First capability foundation: integrating logistics resources across the network developing a multi-

dimensional product portfolio and strengthening the foundation for value realization.In terms of logistics resources the Company follows a strategic path of “node anchoring – routeconnection – regional coverage – network formation” developing a three-dimensional logistics resource

network centered on “highway railway waterway and warehousing” hubs connecting domestic and

international markets and strengthening the underlying capabilities of its logistics services.In terms of logistics products the Company deeply integrates service capabilities across different

segments and develops key international logistics corridors covering Southeast Asia Africa South

19America Europe and Central Asia. It has upgraded its warehousing service portfolio expanded into

diverse formats including futures delivery warehouses and bonded warehouses and enhanced its

warehousing capabilities across a broad range of application scenarios.Second value realization: developing customized end-to-end industrial service solutions and using

accumulated business flows to drive continuous product enhancement.In terms of industrial solutions the Company provides customers with high-quality end-to-end and

scenario-based services developing specialized service capabilities in vertical sectors including

aluminum new energy agricultural products steel minerals and energy and chemicals. In aluminum

industry logistics the Company has established a multimodal transportation network covering the entire

route from overseas bauxite mines to port hubs central and western China smelting facilities and eastern

China processing facilities and developed more than 10 premium logistics routes. In coal logistics the

Company has strengthened its capabilities along key routes including China–Indonesia import corridors

west-to-east coal transportation and north-to-south coal transportation. Logistics services for new energy

agricultural products steel and chemicals have continued to be optimized creating differentiated

competitive advantages.In terms of the business-flow reservoir the Company leverages the extensive service cases and data

assets accumulated through its bulk commodity trading activities. Powered by AI technologies it focuses

on improving operational efficiency and optimizing supply chain coordination and has launched

logistics technology products covering multimodal transportation solution planning price analysis

transportation capacity matching and end-to-end risk alerts in domestic and international markets. It

continues to deepen its development of premium global logistics corridors. The continuous accumulation

and coordinated evolution of business flows and scenario data have created a self-reinforcing virtuous

cycle with continuously enhanced value.

3. Digitalized Supply Chain Service Capability

The Company focuses on its multi-factor operating model covering resources trading logistics services

manufacturing and investment. Leveraging its digital foundation covering the full business chain of bulk

commodity trading and core platforms for supply chain management and smart logistics the Company

promotes the deep integration of AI with industrial scenarios and drives the evolution of its digital and

20intelligent capabilities from internal enablement to external service provision and from a cost center to a

value center.During the reporting period the Company accelerated the integration of AI technologies with supply

chain scenarios focusing on bulk commodity market research intelligent multimodal transportation

operational efficiency improvement and risk management. The Company continued to enhance the

intelligence of its supply chain operations.First the Company advanced the development of commodity market analysis and forecasting models

and explored the application of multi-source data integration and analysis capabilities.Second the Company continued to develop its smart multimodal transportation network. Focusing on

scenarios including intelligent transportation capacity matching intelligent freight rate analysis

intelligent risk identification and intelligent logistics solution recommendations it developed a series of

intelligent models to improve logistics organization efficiency and supply chain coordination.Third the Company advanced the application of AI in operations management and risk management

enhancing intelligent support in scenarios including document processing operational analysis and safety

alerts thereby supporting the optimization and upgrading of its supply chain service model. To date

multiple AI application scenarios have been included in the first batch of scenario capabilities under

Xiamen's National Artificial Intelligence Application Pilot Base.Figure 8: Architecture for the Integrated Development of the Company's Supply Chain and AI

21The Company continued to advance end-to-end management and value realization of data assets. Its core

platform “YuLianTong” has developed innovative supply chain finance products that bridge information

gaps between industrial enterprises and financial institutions transforming inventories and goods in

transit into visible controllable and financeable credit assets and unlocking the collaborative value of

data as a factor of production. In intelligent risk management the platform has launched AI-powered IoT

intelligent monitoring and an AI price-monitoring dynamic assessment model enabling round-the-clock

visualized monitoring of pledged assets and dynamic alerts on commodity values thereby improving

both risk prevention and settlement efficiency.Figure9: YuLianTong Digital Supply Chain Service System

4. Systematic Risk Management Capability

The Company has long adhered to the operating philosophy of “risk first profit second and scale third”.In line with its strategic planning the Company has established a three-tier risk management structure

comprising the Company headquarters industrial sub-groups and business entities with each level

responsible for supervision management and execution respectively. The Company has clarified the

allocation of responsibilities and authorities and coordination mechanisms across the three levels

promoting the evolution of risk governance toward a more strategically driven model.The Company has consistently focused on bulk commodities characterized by high liquidity ease of

realization a high degree of standardization and ease of storage as its core products. As its business

model has evolved its risk management scope has gradually expanded to comprehensively cover

industry-level risks arising from full-industry-chain operations across resources trading logistics

services manufacturing and investment. The Company has established a comprehensive risk inventory

22and a penetrating closed-loop risk management system covering pre-emptive system design and in-

process monitoring of business execution and post-event review and remediation.Against the backdrop of increasingly complex international trade conditions and intensifying market

competition the Company continued to strengthen its policy research risk identification and early-

warning mechanisms for international markets. It closely monitors and systematically assesses changes

in policies and laws the evolution of trade barriers and geopolitical developments across major overseas

markets. Leveraging its presence in key regions including Southeast Asia Africa and South America

the Company strengthened localized risk management teams and local compliance capabilities ensuring

that its risk management standards and emergency response mechanisms remain aligned with the depth

and breadth of its international operations.

5. Multidimensional Industry Research Capability

The Company has deepened the role of its two-tier research system in supporting business operations. It

conducts in-depth research into market cycles industry trends and price fluctuations of its core

commodities providing timely alerts to business operations and mitigating risks. Its research teams

combine extensive industry expertise with capabilities in the application of financial instruments and

produce research outputs across multiple dimensions including frontline operating strategies business

model innovation and corporate development strategies.The Company has optimized its two-tier investment system and implemented tiered and categorized

management of investment projects to facilitate the implementation of strategic investments industrial

chain investments and operating investments. Based on research into industrial chain opportunities and

strategic emerging sectors the Company supports investment evaluation and decision-making

proactively creates value covers the full life cycle of industrial chains and enhances investment quality.

6. Specialized Supply Chain Service Team

Talent is the core foundation of the Company’s development. The Company places great emphasis on

talent cultivation and team building and has established a market-oriented professional and

internationally oriented supply chain service team. The team possesses deep industry insight strong

solution design capabilities and efficient global resource integration capabilities enabling it to

23accurately understand customer needs and deliver tailored supply chain solutions for clients across

different industries and regions.The Company continues to enhance its international human resources system and adheres to a dual-

driven talent strategy of “external recruitment and internal development”. It actively attracts high-quality

professionals from both domestic and international markets while building a robust internal training

system and promotion pathways. By providing clear growth channels and development platforms for

value creators together with well-established incentive mechanisms and project support measures the

Company accelerates talent integration and team development.VI.Key Operating Plans for the Second Half of 2026

In the second half of 2026 the Company will remain focused on its “Three New and One High” strategy

deepen its multi-factor operating model covering resources trading logistics services manufacturing

and investment and focus on the following key priorities:

Strategic execution. First the Company will deepen organizational transformation across its industrial

sub-groups accelerate the development of a strategic management-oriented headquarters and enhance

synergies and resource integration across the sub-groups. Second the Company will strengthen the

closed-loop strategic management process conduct tiered strategic reviews and develop innovative

mechanisms for execution diagnostics and performance tracking ensuring that strategic priorities are

effectively cascaded down to frontline operations and accountability for key strategic targets is clearly

assigned thereby ensuring precise and effective strategy execution.Internationalization. First the Company will strengthen top-level planning for international expansion

and coordinate resources across the organization refine overseas expansion strategies by commodity

category geographic region and business model and accelerate its global market expansion. Second the

Company will improve its localized operating framework and strengthen its local talent pipeline and

international governance system.Logistics system. The Company will leverage the Logistics Industry Group’s capabilities in coordinating

internal and external resources focus on core industry chains deepen synergies between commodity

trading and logistics strengthen its capabilities in developing dynamic global logistics solutions

accelerate the deployment of AI large-model applications in multimodal transportation systematically

24build a logistics service system with Xiangyu’s distinctive characteristics and enhance its differentiated

competitiveness in industrial chain operations.Operational quality enhancement. First building on the significant improvement in vessel delivery

capacity driven by shipbuilding expansion the Company will optimize the development of higher value-

added vessel types refine lean management across the entire value chain and consolidate its leading

advantages in brand strength and profitability. Second focusing on resource-based and industrial

customers the Company will leverage synergies between commodity trading and logistics and its

integrated service capabilities further unlock the value of strategic customer relationships enhance the

effectiveness of its multi-factor operating model and optimize its earnings mix. Third the Company will

identify high-quality opportunities for strategic investment industrial investment and capital operations

and leverage investment to further support the development of industrial chain operations.Management efficiency improvement. First the Company will strengthen research-driven

management improve its price early-warning system and enhance the integration of industry-level

research with customer-level risk management thereby strengthening its resilience to business cycles

and market volatility. Second the Company will further strengthen its multi-layered risk management

and compliance framework enhance its capabilities and mechanisms for dynamic strategy adjustment

and maintain a dynamic balance between business expansion and risk management. Third the Company

will coordinate the advancement of digital and intelligent initiatives accelerate the implementation of its

AI roadmap promote the transformation of digital capabilities into products deepen scenario reuse and

ecosystem collaboration and unlock the overall benefits of digitalization. Fourth the Company will

closely follow the latest regulatory requirements strengthen internal control standards and production

safety management and further reinforce the foundation for sustainable development.VII. Potential Risks

1. Macroeconomic and Commodity Price Volatility Risks

The world is undergoing accelerated changes unseen in a century with an increasingly complex and

challenging external environment. Unilateralism and protectionism are intensifying the multilateral

trading system is facing increasing constraints tariff barriers are rising and geopolitical tensions remain

elevated. Global industrial and supply chains are exposed to multiple risk shocks while international

commodity markets continue to experience significant price volatility. The Company’s industry is

25closely linked to domestic and global macroeconomic conditions; therefore macroeconomic fluctuations

may to a certain extent affect its operating performance.Response Strategies: The Company will continue to strengthen its price risk management framework.At the business model level it will further deepen full-industry-chain operations to mitigate the impact

of price fluctuations at individual stages of the value chain. At the mechanism level it will strengthen

monitoring and analysis of industry cycles continuously refine its bulk commodity price forecasting

models and provide timely early warnings in response to changes in the external environment. At the

system level the Company will enhance its ability to identify risks in a timely manner and further

leverage hedging instruments.

2. Operational Management Risks

While China’s economy maintains a long-term positive trajectory the foundation of economic recovery

remains unstable with insufficient effective demand—particularly weak consumption—and operational

difficulties faced by certain enterprises. Industrial chain clients are encountering significant business

challenges exposing the Company to risks related to customer credit management business model price

volatility and cargo rights control.Response Strategies: The Company will further enhance its digital-intelligence-enabled operational

management system and strengthen the separation of three key rights—business operations financial

management and logistics and cargo ownership. Through a combination of measures—including

increasing the proportion of manufacturing customers and reducing customer concentration from the

customer perspective optimizing its commodity mix upgrading its business models and strengthening

its risk management framework—the Company will effectively manage operational risks.To address customer credit risks the Company will continue to strengthen its full-lifecycle customer and

counterparty management capabilities based on a risk management philosophy centered on controllable

and manageable risks. It will effectively manage customer concentration establish appropriate

management thresholds and indicators leverage AI to enable dynamic monitoring of customers and

counterparties and continuously improve its customer credit risk management system.

3. Risks in International Expansion

26The Company regards internationalization as one of its key development strategies and conducts business

with customers and counterparties across more than 140 countries and regions. Policies and regulations

in different countries and regions remain subject to uncertainties and changes in areas including trade

access foreign exchange controls tax regulation local operations resource development and

environmental compliance. In addition fluctuations in international shipping markets and foreign

exchange rates as well as changes in social security conditions in certain regions may have an impact

on the Company’s overseas business expansion supply chain stability and operating performance.Response Strategies: Through its International Business Division the Company will continue to

improve its global operating framework establish localized operating platforms and professional teams

in key regions strengthen monitoring and analysis of political economic legal regulatory and industry

policy developments in key countries and regions improve its overseas compliance framework and

establish risk early-warning and emergency response mechanisms for international operations.Meanwhile the Company will continue to optimize its global resource and market footprint diversify its

sources of procurement sales markets and logistics routes and enhance supply chain resilience. In

addition the Company will strengthen its ability to withstand risks associated with international

operations by utilizing foreign exchange and price risk management instruments strengthening credit

risk management and optimizing the allocation of financial resources.

27