新海通
XIN HAI TONG
2025
Fujian Highton Development Co. Ltd. ENVIRONMENTALSOCIAL AND
Address: 42nd floor Shenglong global building (ICC global center)
No. 23 Changting street Ninghua street Taijiang District Fuzhou GOVERNANCE (ESG) REPORT
Tel: 0591-88086357
Website: www.fj-highton.com Fujian Highton Development Co. Ltd.TABLE OF
CONTENTS
About This Report Topic 02 Afterword to the Report
Reporting Scope 01 Key Performance Indicators 99
Reporting Period 01 Digital and Intelligent Leadership Green and Low-Carbon Indexes 108
Smart Shipping Across the Seas Safeguarding the Ecosystem
Preparation Basis 01 Feedback 110
Data Sources 02 Digital Strategy Vision 13 Green and Low-Carbon Operation 41
Definition 02 Advancing a Multi-System Deployment 15 Strengthening Environmental
Management 51
Confirmation and Approval 02 Digital Empowerment of Business
Development 17 Optimizing Resource Utilization 57
Access to this Report 02
Industry Exchange and Collaborative Biodiversity Conservation 58
Development 18
Message from the Chairman
0103
About Highton Development Sound Governance and Digital Intelligence-Driven
Company Profile 05 Compliance as the Foundation Collaborative Value Creation
Business Overview 06 Governance for Sustainable Development 21 Comprehensive Digital Intelligence
Strategy and Culture 07 Development 61Corporate Governance 27
Milestones 08 Data Security and Privacy Protection 65Protection of Investors’ Rights and
Key Events of 2025 09 Interests 31 High-Quality Customer Service 70
Honors and Awards 10 Compliance and Risk Management 33 Responsible Supply Chain 73
Key Sustainable Development Business Behaviors 35
Performance in 2025 10
04
Harmony and Safety Creating
a Better Future Together
Navigation Safety Management 77
Protecting Employees’ Rights and
Interests 84
Contribution to Society 96新海通
XIN HAI TONGEnvironmental Social and Governance Report 2025 About This Report
About This Report
This is the second Environmental Social and Governance Report (hereinafter referred to as “this report”) issued by
Fujian Highton Development Co. Ltd. (hereinafter referred to as “Highton Development”). In the principles of objectivity Data Sources
standardization transparency and comprehensiveness this report provides a detailed disclosure of the Company’s practices
and performance in environmental social and governance for the year 2025.Data sources used in this report include the Company’s actual operational data publicly available data from government
agencies annual financial data internal statistical reports third-party questionnaire surveys etc. The financial data in this report
is expressed in RMB. For any discrepancy between this report and the financial statements the financial statements shall prevail.Reporting Scope
This report takes “Highton Development” as the main body and includes its subsidiary companies. Unless otherwise specified
the scope of this Report is consistent with that of the Company's annual report. DefinitionFor the ease of expression and readability Fujian Highton Development Co. Ltd. and its subsidiaries are referred to as “theCompany” or “We” in this report. Unless specifically indicated the terminology used here has the same meaning as in the
Reporting Period Company's 2025 Annual Report.This report covers the period from January 1 2025 to December 31 2025 (the “Reporting Period”). To improve the comparability
and completeness some sections of this report may be appropriately referred to previous years or contains forward-looking
statements. This report is released on an annual basis consistent with the financial year.Confirmation and Approval
This report was approved by the Company's Board of Directors on March 19 2026 and was subsequently released in conjunction
with the Annual Report. The Board pledges to exercise oversight over the contents of this report ensuring its absence of any
Preparation Basis false records or misleading representations and assuming responsibility for its truthfulness accuracy and completeness.Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 - Sustainability Report (for Trial
Implementation)
Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 4 - Preparation of Sustainability Report Access to this Report
Guide to Corporate Sustainability Reporting in China (CASS-ESG 6.0) of the China Enterprise Reform and Development
Society This report is available for review and download on the official websites of the Company (http://fj-highton.com) and the Shanghai
Stock Exchange website (https://www.sse.com.cn).
2021 Sustainability Reporting Standards (GRI Standards) of the Global Reporting Initiative
Sustainable Development Goals (SDGs) of the United Nations
01 02Environmental Social and Governance Report 2025 Message from the Chairman
Message from the Chairman
The year 2025 marks the final year of China’s 14th Five-Year Plan the sixteenth year since the establishment of Highton Focusing on Green Shipping and Fulfilling Environmental Commitments
Development and a pivotal year in which all Highton employees have built on past achievements driven innovation and laid a
solid foundation for the Company’s sustainable development journey. Advancing toward sustainability and embracing innovation. The Company actively responds to China’s “dual carbon” goals
embedding green and low-carbon principles throughout the entire process of vessel operations and technological innovation.Looking back over the past sixteen years the Company has progressed steadily amid the fluctuations of the global economy On the basis of strict compliance with international conventions as well as relevant domestic and overseas laws regulations and
consistently viewing the future with a strategic vision and seizing opportunities through pragmatic actions. We firmly believe rules the Company has formulated a range of environmental protection policies and procedures and has equipped each of its
that an outstanding enterprise is defined not only by its ability to create value and serve the market but also by its conscious owned vessels with environmental protection facilities such as oily water separators and domestic sewage treatment systems.commitment to environmental social and governance (ESG) responsibilities. Highton Development has deeply integrated ESG We closely monitor green technologies aimed at improving vessel operational energy efficiency and actively introduce various
principles into all aspects of its operational and management activities continuously enhancing its overall competitiveness and energy-saving equipment across our self-operated vessels. Through these efforts we remain committed to reducing the carbon
brand influence in the dry bulk shipping sector. footprint of our shipping activities and contributing Highton Development’s strength to the protection of blue seas and clear
skies.Deepening ESG Integration to Drive Strategic Development
Empowering Employee Growth and Fostering Team Synergy
Creating shared value and advancing strategy in tandem. In 2025 the Company’s ESG management evolved from the stage
of “establishing mechanisms” to a new phase of “deepening integration”. Building on a sound ESG governance framework Talent is our oar and unity propels us forward. The Company firmly upholds its people philosophy of “Working together aswe further and systematically incorporated ESG considerations into the Company’s investment decision-making and business one and leveraging individual strengths; Prioritizing integrity and emphasizing performance” and translates a people-oriented
processes thereby strengthening strategic resilience and long-term development capability in an increasingly complex approach into concrete practice. By cultivating a proactive and progressive corporate culture fostering an open and collaborative
environment. working environment establishing diverse internal and external communication platforms and building a comprehensive
talent development and promotion system—together with equity incentive plans—the Company has created a solid pathway
for Highton employees to advance and grow. We are committed to supporting the development of every Highton employee
providing a stage for every breakthrough and enabling individual talent to resonate in step with the Company’s strategy as we
Enhancing the Governance Framework and Strengthening the Foundation of Risk jointly reach new heights.Control
Riding the long winds we will one day break the waves and set our sails high to cross the vast seas. Looking ahead Highton
Compliance is the cornerstone and risk control serves as the shield. The Company remains firmly committed to the core Development will continue to uphold its mission of “Aiming at the ocean making China’s shipping business better and stronger”
principle of compliant governance attaching great importance to the soundness of its corporate governance structure and the carry forward the corporate spirit of “Sea in mind Determined to win” and remain committed to both sound governance and
effectiveness of its internal control system. The Company continues to closely monitor the latest laws and regulations regulatory green development. With unwavering dedication the Company will strive to create long-term value and pursue its vision of
and normative documents as well as industry policies and guidance and dynamically conducts systematic reviews and revisions “Majoring in shipping we aims to expand the shipping industry chain and build a well-known international shipping brand”.of its corporate governance and internal control systems. A continuously improving governance framework and an ever-higher
standard of compliant operations provide a solid institutional foundation for the Company to earn the long-term trust of investors
and business partners.Fujian Highton Development Co. Ltd.Chairman: Zeng Erbin
03 04Environmental Social and Governance Report 2025 About Highton Development
About Highton Development
Company Profile Business Overview
Fujian Highton Development Co. Ltd. was established in March 2009. The Company continuously enhances its shipping capacity and actively expands operations across all vessel types. It has
Since its establishment it has always focused on engaging in domestic acquired Panamax and Capesize dry bulk vessels as well as multipurpose heavy-lift vessels to expand its capabilities in high-end
coastal and international ocean dry bulk shipping business. After years equipment and oversized cargo shipping. The Company has now become an owner of a full range of dry bulk vessels with the
of accumulation the company has developed into one of the enterprises Supramax type as its core.with strong market competitiveness in the domestic private dry bulk
shipping industry. On March 29 2023 Highton Development was listed on In 2025 the Company added 18 vessels through new purchases and bareboat charters to increase the shipping capacity. Asthe Shanghai Stock Exchange with the securities abbreviated as “HightonDevelopment” and coded as “603162”. of the end of the Reporting Period 16 of these vessels had been delivered. Once all deliveries are completed the Companyhad 13 long-term chartered dry bulk vessels (with a charter period of one year or more) 61 self-operated dry bulk vessels The Company is a member of the “China Coastal (Dry Bulk) Freight IndexCompilation Committee” of the Shanghai Shipping Exchange and has 4 multipurpose heavy-lift vessels and 3 oil tankers bringing the total controlled capacity to 5.02 million DWT. The
been awarded honors by the Pingtan Comprehensive Experimental Zone shipping capacity ranks among the top in China’s dry bulk shipping industry.Administrative Committee of Fujian Province including the “AdvancedCollective for Contributions to the Open Development of PingtanComprehensive Experimental Zone” and “Outstanding Private Enterprise”. Leveraging excellent shipping capabilities refined cost management and efficient responsive customer service the Company
Ranked among the Top 100 Private Enterprises in Fujian has established long-term and stable partnerships with numerous well-known domestic and international enterprises. At the same
The Company deeply delves into the field of dry bulk shipping with Province in 2025 time the Company has accumulated extensive experience in vessel management route planning and customer developmentthe corporate mission of “Aiming at the ocean making China’s shipping and maintenance forming a professional team with strong competitive capabilities.business better and stronger”. Adhering to the corporate spirit that “Sea in mind Determined to win” the Company has
established the values of “Struggle Responsibility Collaboration Innovation”. It persists in maintaining the standards while
simultaneously improving ensuring safety and enhancing efficiency. Meanwhile the Company actively integrates into the The Company primarily transports coal and has become one of the leading private
customer value chain and strives to create value for customers. With unremitting efforts the Company aims to achieve the vision shipping enterprises in terms of service capacity on inland routes from the Bohai
of “Majoring in shipping we aims to expand the shipping industry chain and build a well-known international shipping brand”. Bay area to Yangtze River ports. At the same time it is actively expanding its
transportation services for other dry bulk commodities such as ores and water-
slags.Domestic Coastal Shipping
International Ocean Shipping
In alignment with China’s “Belt and Road” Initiative the Company actively expands its global dry
bulk shipping operations. Its routes cover over 350 ports across more than 100 countries and
regions providing clients with maritime transportation services for a wide range of cargoes
including ores coal grains fertilizers and general cargo.
05 06Environmental Social and Governance Report 2025 About Highton Development
Strategy and Culture Milestones
Development Strategy
2009 Fujian Highton Development Co. Ltd. was established.The Company upholds the vision of “Majoring in shipping we aims to expand the shipping industry chain and build a well-known international shipping brand” and adheres to the corporate mission of “Aiming at the ocean making China’s shipping 2011 The 51000 DWT vessel construction contract came into effect.business better and stronger”. Guided by the values of “Struggle Responsibility Collaboration Innovation” the Company
follows a steady and sustainable business model to continuously consolidate and expand its high-quality client base
Launch of the corporate culture development initiative.strengthen and refine its core business and consistently create value for its customers. 2012
The Company will continue to focus on the dry bulk shipping sector with Supramax vessels as its core expanding shipping 2013 MV XIN HAI TONG 1 2 and 3 commenced operations.capacity as appropriate and actively developing operations across all vessel types. It will accelerate the development of multi-
dimensional service capabilities along the shipping industry chain including vessel operations and bunkering services with
MV XIN HAI TONG 5 commenced operations.the aim of building a resource-management-oriented shipping platform. 2014
MV XIN HAI TONG 6 and 7 commenced operations.In the future the Company will continue to advance its digital and intelligent transformation by introducing artificial
MV XIN HAI TONG 8 commenced operations.intelligence and implementing local deployment of large models. It will actively explore applications in business management
and collaborative office scenarios providing powerful information integration and intelligent decision-support tools for vessel
management and operations. By fully empowering daily work the Company aims to deliver efficient and precise intelligent 2015 Highton Development was listed on the National Equities Exchange and Quotations (NEEQ also
known as the New Third Board).services striving to build a “full-chain smart shipping ecosystem”.
2016 The Company’s official name was changed from “Fuzhou Highton Development Co. Ltd.” to “FujianHighton Development Co. Ltd.”
HAI YANG ZHI YUAN commenced operations.Corporate Mission Spirit MV XIN HAI TONG 19 commenced operations.Aiming at the
ocean making Sea in mind
China’s shipping Determined 2017 MV XIN HAI TONG 9 and 10 commenced operations.business better to win
and stronger
2019 MV XIN HAI TONG 15 and 16 commenced operations.
2020 MV XIN HAI TONG 17 18 20 21 and 22 commenced operations.
Core Culture
Struggle 2021 MV XIN HAI TONG 23 25 26 27 and 28 commenced operations.Responsibility Honesty Focus
Collaboration Cooperation and
Values Innovation Win-Win Philosophy 2023 Listed on the Main Board of the Shanghai Stock Exchange
Majoring in shipping MV XIN HAI TONG 29 30 31 32 33 35 36 37 and 38 commenced operations.we aims to expand
the shipping industry
chain and build a
well-known 2024 MV XIN HAI TONG 39 50 51 52 53 55 56 57 58 59 60 801 802 803 805 901 and 902 commenced operations.international
shipping brand
2025 MV XIN HAI TONG 61 62 63 65 66 806 807 808 809 810 811 812 501 505 903 and 905
Corporate vision commenced operations.
07 08Environmental Social and Governance Report 2025 About Highton Development
Key Events of 2025 Honors and Awards
January 2025
* The 2024 year-end summary and 2025 annual planning
conference concluded successfully
ESG Value Delivery Award Excellence in Investor Relations Award
February 2025
* Two new 180000 DWT Capesize vessels
were added to the fleet
March 2025
* Participated in the 2025 World Breakbulk Expo
(WBX) in Shanghai
May 2025 Key Sustainable Development Performance in 2025
Highton Development continues to uphold its commitment to sustainable development achieving significant progress in
* The Company made its debut at the world’s
the environmental social and governance (ESG) areas through the dual drivers of refined operations and digital-intelligent
premier maritime logistics event the Breakbulk
transformation. In 2025 the Company’s Wind ESG rating was upgraded to “A” fully reflecting its effectiveness in sustainable
Europe (BBK)
development management and practices.June 2025* Highton Development “Navigating Together Embarkingon a Shared Journey” Corporate Culture Day
August 2025
In 2025 the Company continued to leverage its strengths and fulfill its social responsibilities making sustained contributions in
* The 2025 Drybulk Shipping Market
the economic environmental social and governance dimensions thereby supporting a sustainable future.Convention & Vessel Visit was successfully
held
* The first multipurpose general cargo vessel
MV XIN HAI TONG 501 joined the Highton
November 2025 Development fleet marking the Company’s
official entry into multipurpose general
* Highton Development’s application for the cargo vessel operations
issuance of shares to specific investors was
approved by the Shanghai Stock Exchange
Operating Income（in RMB 10000） Net Profit Attributable to Shareholders of the Listed Company（inRMB 10000）
09 10Environmental Social and Governance Report 2025 About Highton Development
Governance Performance
Total Number of General Meetings of Shareholders Held Number of Meetings of Board of Directors Held
6Times 18Times
Number of Meetings of Specialized Committees Held Performance Exchange Meeting
Environmental Performance
14Times 5Times
Total Environmental Investment Total Direct Energy Consumption
4137.41in RMB 10000 347422.38tce
Social Performance
Total Indirect Energy Consumption Total Energy Consumption
135.39tce 347557.77tce
Total Number of Employees Investment in Employee Training Staff Training Hours
Energy Consumption Intensity Direct GHG Emissions (Scope 1) 368Person 37.91in RMB 10000 8586Hour
78.23tce/RMB 1 million (revenue) 771010.72tCO2e
Employee Training Participants Employee Training Coverage Rate Percentage of Contract Workers
Indirect GHG Emissions (Scope 2) Total GHG Emissions 3944Training participants 100% 100%
591.12tCO2e 77177822tCO2e
Investment in Work Safety
GHG Emission Intensity 18632.34in RMB 10000
173.71tCO2e/RMB 1 million (revenue)
11 12Environmental Social and Governance Report 2025 Digital and Intelligent Leadership Smart Shipping Across the Seas
Digital and Intelligent Leadership
TOPIC Smart Shipping Across the Seas
Phased Objectives of Digitalization
Against the backdrop of the accelerating digital transformation of the global shipping industry data-driven management and
process optimization have become critical to enhancing operational efficiency. Guided by the Company’s medium-term strategic
development objectives Highton Development is systematically advancing its digital transformation initiatives. By building Establish financial systems human Improve business and management processes;
an integrated decision-support and analytics platform optimizing business systems such as fuel management and exploring resources systems bank-enterprise
platform-based services the Company is progressively realizing the integration of business and finance as well as upstream and Introduce intelligent application scenarios as settlement systems domestic-shipping appropriate to empower business operations;
downstream collaboration with the aim of enhancing refined management capabilities and data-driven decision-making. systems foreign-shipping systems and Enhance data dimensions.analysing systems.Enhancement
Digital Strategy Vision FoundationThe Company integrates the development of its digital systems with its overall corporate strategy taking “digital transformation 2019-2023and upgrading” as the foundational guiding principle and implementing the action framework centered on “data as a productionfactor”. It continues to deepen the development of information systems promotes comprehensive business intelligence and In the future
efficient digitalized management thereby enhancing management effectiveness and optimizing resource allocation. Through
information platforms the Company serves its customers and empowers its partners while internally improving operational and Deepening
management capabilities and externally strengthening collaborative operations with upstream and downstream partners with the Integration
goal of building a closely connected and highly efficient value-chain ecosystem. Deepen the application of business scenarios;
Introduce standardized data and integrate shared data; Mature intelligent application scenarios to
Optimize business data and data coupling upgrade improve efficiency and reduce costs.Platformization and iterate systems;
Establish information standards and integrate systems.Serve cargo owners and connect shipowners through a unified platform
Promote collaboration across the upstream and downstream of the industry
Empower shipowners achieve coordinated growth
Model Building
Overall Systematically review and integrate internal systems
Objectives of
Share data and build a data analysis platform
Digitalization
Establish intelligent application scenarios as appropriate
Strengthening Internal Capabilities
Streamline internal management processes and enhance internal collaboration
Standardize business processes and data standards
Establish management standards and guidelines to solidify the management foundation
13 14Environmental Social and Governance Report 2025 Digital and Intelligent Leadership Smart Shipping Across the Seas
Advancing a Multi-System Deployment
The Company is committed to building a comprehensive shipping digital ecosystem grounded in digitalization and intelligence covering areas such as vessel operations cargo chartering and bunkering services. Through this
approach the Company aims to optimize business operations and enhance the overall efficiency of integrated management functions including human resources and financial systems.System Development and Timeline Distribution
Basic Platform
Decision Data Automation and Integration
Support Performance Management System Budget Management System Comprehensive Decision Analysis System Online Trading PlatformPlatform
Layer
Domestic- Spare Parts Domestic-Treasury Shipping Integration Platform Socialized Data DescriptionFinancial and Banking shipping Bidding Bidding Cost Accounting Operation and Bid Tax Platform
Centralized Crew Fuel Oil Sales Platform
Management and Bid Management Procurement Management PlatformOperations System Comparison Comparison Cargo Owner Cargo
Management Chartering Tracking Fuel Ordering
Layer Foreign- To-do List Integration Platform Platform
Platform
Employee
Records Compensation Shipping Expense
Performance Financial Platform
Management Operation Control Reporting Shared
Insurance Vessel Assets Settlement To Be Confirmed
Management Management Services Management Management Platform
Data Model
System
Report Management Customer
Dashboard Service Platform 2024
Collaborative Operation System Shore-based Master Data Platform
Management Management Vessel-end Operation Operations
Early Warning Shipowner
Platform Tender Bid Shipowner Evaluation 2025
Domestic-shipping Release Comparison Purchase Requisition Materials Platform Platform
Document Operation (Phase III Management Procurement
Management Optimization) Management System Analysis Indicator Model
Inventory System SMS PlatformReal-time 2026
Operational Data
Operations Foreign-shipping Inbound Outbound Operation Management Management
Execution System Monitoring Machine Automation
Inventory
Layer Company Notice Counting Spare Parts System System Collection Platform Platform
Management Management Implementation National and Industry Platforms
Existing
Domestic-shipping
Operation Integrating
Yinghai System Energy Consumption
Management System Recruitment Management Unified Portal
Crew Management System
Administrative Integrated Yinghai
Office Fuel Procurement and System Dry Bulk Index Collection Port Platform Platform Insurance ....Sales Platform Monitoring Training Management
System Shared File System (Unified)
15 16Environmental Social and Governance Report 2025 Digital and Intelligent Leadership Smart Shipping Across the Seas
Building on its core dry bulk shipping business the Company focuses on an integrated approach that enhances internal Enabling Precision Services and Cross-Department Collaboration
management and delivers services to cargo owners. Through a combination of external partnerships to develop information Customer Establish a unified customer management framework that fully records service processes and
platforms and the construction of proprietary platforms the Company continuously optimizes its business management systems Relationship customer needs categorizes customer attributes and maps detailed customer profiles. Based
strengthens its data-driven capabilities and provides robust support for the achievement of its strategic objectives.Management on shared customer records the system strengthens cross-departmental business collaboration
and by conducting identity verification through the national business database grading service
Foreign-Shipping Operation & System
Vessel Management System Domestic-Shipping Operation System customers and analysis of potential customer conversion value provides a foundational reference for Management System
differentiated business strategies. It continuously refines customer profiles enhancing service value
and fostering stronger customer engagement.Financial Management System Crew Management System Customer Relations Management System
Promoting Efficient Integration of Industry Chain Resources
Tax System Data Analysing System Leveraging the Bidding System the Company expands its shipping capacity resources and establishes
win-win partnerships with downstream capacity suppliers. The system manages the entire process
Bidding System from capacity bidding to carrier evaluation helping to select high-quality partners efficiently activate
Cooperative System Development surplus downstream capacity and enhance industry chain collaboration. Together these efforts
ensure stable and reliable transportation services for customers while building a mutually beneficial
ecosystem.Coordinate Office System Performance Management System Domestic-Shipping Bidding System
Building an Integrated Digital Ecosystem for Business Finance and Taxation
Insurance Management System As the first company in Pingtan to develop a precise empowerment-oriented corporate tax file
management system the Company leverages a data platform to integrate Domestic-Shipping
Operation System Vessel Management System and Crew Management System. Following the review
Proprietary Systems
and approval of operating transactions this integration enables automated financial posting and tax
Tax System invoice issuance real-time tracking of invoice status for procurement activities in the Vessel and Crew
Management Systems automatic verification of procurement invoices and multi-company tax invoice
Digital Empowerment of Business Development analysis. Together these functions create an integrated digital ecosystem for business finance and
taxation enhancing overall operational efficiency.The Company continuously promotes the deep application and collaborative integration of key business operations. In 2025
multiple new digital system platforms were introduced to empower business management effectively transforming the digital
infrastructure into tangible business momentum.Achieving Digital Management Across the Vessel Lifecycle Industry Exchange and Collaborative Development
To enhance ship-shore collaboration efficiency the Company in partnership with COSCO SHIPPING The Company places great importance on learning from the digitalization best practices of industry-leading enterprises. Through
Technology Co. Ltd. developed a Vessel Management System. By 2025 the system had been technological exploration and collaboration it strengthens its own digitalization capabilities.Vessel deployed on 60 self-operated vessels. It covers key functions including basic management safety
Management management energy efficiency management system management vessel repairs and spare parts Learning Exchange and Exploration Industry Visits and Exchanges
procurement. The system provides end-to-end coverage—from fundamental administration to energy
System
efficiency monitoring from fuel and lubricant control to spare parts traceability—enabling interactive Leveraging the disciplinary strengths By organizing in-depth exchanges with companies such as COSCO
ship-shore management and significantly advancing vessel operations toward greater precision and of Quanzhou Vocational and Technical SHIPPING Specialized Longking and Transsion Holdings the
digitalization. University (QVTU) the Company has Company systematically absorbs industry-leading digitalization
conducted preliminary explorations in the practices providing a solid foundation for business innovation and
Establishing a Closed-Loop Crew Management Framework application of large data models in the process optimization. During these interactions emphasis is placed
Through the joint development of shared crew pool and a digital management platform to fueling sector. Drawing on the QVTU’s on deeply integrating external experiences with the Company’s
Crew comprehensively manage and update in real time crew members’ basic information work history
industry-research advantages a new own scenarios to ensure efficient knowledge transfer and practical
certifications training records and onboarding/offboarding evaluations. The system supports full research topic has been developed to application. This approach not only significantly enhances the
Management lifecycle management of certifications including registration renewal expiry alerts and automatic analyze optimal procurement timing in team’s technical capabilities and project efficiency accelerating
System updates ensuring continuous compliance of crew qualifications. Additionally by integrating multi- fueling business scenarios using data the digital transformation process but also lays the groundwork for
dimensional evaluations with actual attendance data the system enables precise payroll calculation models. continuous innovation and strengthened market competitiveness.and performance feedback providing a solid data foundation for crew career development and the
Company’s talent reserve.
17 18Environmental Social and Governance Report 2025 Sound Governance and Compliance as the Foundation
Sound Governance and
Compliance as the Foundation
Highton Development consistently integrates the concept of sustainable development into its corporate governance framework.Centered on the Board of Directors the Company has established a decision-making system with clear responsibilities and high
transparency and efficiency. By strengthening integrity management and deepening risk control through key initiatives it builds
a robust foundation for sustainable development.Governance for Sustainable Development
Corporate Governance
Protection of Investors’ Rights and Interests
Compliance and Risk Management
Business Behaviors
19 20Environmental Social and Governance Report 2025 Sound Governance and Compliance as the Foundation
Governance for Sustainable
Development The Company actively conducts ESG training by combining external and internal
training methods to enhance the understanding of ESG among relevant personnel.ESG Management
Internal ESG Training
In response to global sustainable development trends the Company proactively aligns with relevant laws and regulations Participation in Listed Companies’ Sustainability (ESG) Reporting Training Case
continuously optimizing its ESG governance framework. The ESG concept is comprehensively integrated into the Company’sdevelopment strategy and all aspects of its operations. In 2025 personnel from the Company’s Securities Investment Department at tended the “High-QualityDevelopment Training Series for Listed Companies – Sustainability (ESG) Reporting” held by the Shanghai Stock
In 2025 the Company further advanced its ESG management efforts and continued to improve its sustainable development Exchange (SSE) in Qingdao. By participating in this training the Securities Investment Department staff further
governance system by formulating and issuing the ESG Management Policy . The policy establishes a three-tier ESG governance deepened their understanding of the core requirements and latest developments in ESG information disclosure
structure: the Board of Directors as the highest leadership and decision-making body the ESG Working Group (led by the helping to enhance the quality of the Company’s ESG reporting.Company’s General Manager) as the coordination and execution support layer and various departments and subsidiaries as the
implementing units. This structure clarifies roles and responsibilities within ESG governance laying a solid foundation for the
Company’s long-term stable and sustainable development.Highton Development ESG Governance Framework Sustainable Development Philosophy
Determine the Company’s sustainable development policies strategies and objectives;
Oversee the assessment of sustainability-related impacts risks and opportunities; The Company integrates the United Nations 2030 Sustainable Development Goals (SDGs) into its development strategy adhering
to the principles of sustainable management. By focusing on key areas and implementing targeted measures the Company
Monitor the implementation of sustainability-related initiatives and provide guidance as appropriate; strives to comprehensively enhance the quality and effectiveness of its ESG initiatives.Board of
Directors Make decisions on major ESG-related matters;
Review and approve the Company’s annual ESG report.Implement the Company’s ESG development strategies and objectives and organize departments Talent Concept Safety Philosophy Management Philosophy
and subsidiaries to carry out ESG initiatives;
Working together as one and Cherish life and respect the ocean Balancing standards with streamlined
Organize and promote the identification assessment and prioritization of sustainability-related leveraging individual strengths practices ensuring safety alongside
impacts risks and opportunities;
Prioritizing integrity and emphasizing efficiency
Draft ESG policy documents relevant topics periodic work plans and implementation plans; performance
ESG Working
Group Collect and compile the Company’s ESG data and prepare ESG reports and related documents;
Organize ESG business training and track the requirements and trends of the ESG policy;
Perform other duties related to the ESG Working Group’s responsibilities.Concept Product Culture
Assume primary responsibility within their respective areas ensuring the daily management of Creating values for customers and Devote to the vessel and be accompanied
Departments ESG-related tasks in alignment with the Company’s ESG development strategies and objectives. realizing dreams for striver by the sea
and Regularly report on the execution status and promptly submit ESG information. Strive for efficiency through hard work
Subsidiaries and pursue development through service
21 22Environmental Social and Governance Report 2025 Sound Governance and Compliance as the Foundation
SDGs Response Measures Communications with Stakeholders
Serve the supply chains along the “Belt and Road” initiative by providing maritime transportation services for The Company consistently places a high priority on communications with stakeholders striving to establish a diversified
ores coal grain fertilizers and general cargo contributing to national food and energy security. communication mechanism. It actively monitors and promptly responds to the concerns and demands of various stakeholders.Donate to and support maritime universities by establishing dedicated scholarships promoting public welfare By deepening collaborative efforts with all stakeholders the Company fosters a unified force for development jointly advancing
initiatives. sustainable corporate growth and achieving mutually beneficial outcomes.Stakeholders Key Areas of Concern Company Response
The Company actively responds to climate action adhering to the Paris Agreement and the IMO’s emission
reduction strategies. Through measures such as technological upgrades and operational optimization—including Comply with Laws and Regulations
shore power retrofits and the installation of energy-saving devices—it explores and promotes the use of clean Lawful Tax payment Fulfill Tax Obligations
energy enhances vessel energy efficiency and advances the maritime industry toward a green transition. Employment Promotion
Government/ Improve the Remuneration System
The Company places great importance on marine biodiversity protection strictly managing ballast water to Regulatory Agencies Compliant Operations Integrity Management
prevent biological invasions strengthening oil spillage emergency response capabilities and optimizing vessel
coatings to avoid the discharge of harmful substances. These measures minimize the impact of operational
activities on marine ecosystems actively fulfilling the Company’s responsibility for marine ecological
Returns to Shareholders
conservation.Information Disclosure Improve Business Quality and Efficiency
Stable Operations Disclose Information Regularly
The Company has established and continuously improved its employee training system formulated training Shareholders
management policies flexibly implemented both online and offline training programs developed a professional Compliant Operations
instructor team and introduced a mentorship system to comprehensively promote employee growth and
development.Protection of Basic Rights
Guided by capability and performance the Company provides equal employment opportunities promotes Health and Safety Ensure Fair Compensation and Benefits
gender equality in the workplace and fosters a fairer more respectful and more inclusive working environment.Employees Career Development Enhance the Safety Management System
The Company adheres to the principles of fairness and impartiality in recruitment builds a diverse talent pool
Crew Care
safeguards employees’ democratic rights and effectively protects their legitimate rights and interests.The Company actively promotes digital transformation by developing intelligent shipping management systems Community Contribution Organize Volunteer Activities
integrated decision-making and analytics platforms optimizing business processes and establishing service Communities
platforms. These initiatives drive business innovation and development while enhancing core competitiveness.Through digital initiatives the Company promotes the use of electronic documents reducing paper
consumption optimizing transportation efficiency lowering carbon emissions and advancing green shipping. Safe and Efficient Services Customer Service Management
The Company has established a scientific compensation and performance system to ensure fair and reasonable Customers Enhanced Transportation Capacity Ensure Cargo Safety
remuneration provide clear promotion pathways and foster the development of outstanding talent.Adhering to the management philosophy of “combining standardization with lean practices and pursuing Win-Win Cooperation Responsible Procurementsafety alongside efficiency” the Company has established an anti-corruption compliance system to uphold fair Fair Competition Supplier Management
competition laying a solid foundation for building a strong and just organization. Suppliers
Through refined supply chain management the Company has established a supplier evaluation and classification
mechanism creating a fair and transparent collaboration framework and treating small and medium-sized
enterprises equitably. This ensures an efficient safe and stable supply chain. By working hand in hand with
Information Transparency Annual Reports
partners the Company fosters a business ecosystem grounded in peace and justice co-creating value and
sharing benefits. Public and Media Public Welfare and Charity Public Welfare Donations
23 24Environmental Social and Governance Report 2025 Sound Governance and Compliance as the Foundation
Matrix of Material Topics
Analysis of Material Topics
In 2025 the Company conducted a materiality analysis of ESG topics. Following relevant guidelines and reporting standards the
Company carried out and updated the materiality analysis through the following steps:
Navigation Safety Management
Employee Rights and Development
Learning about We continuously monitor the effectiveness of ESG practices taking into account national policy directions industry
the Company’s trends and the Company’s strategic layout. We systematically assess the key sustainability issues the Company faces Occupational Health and Safety
Activities and conduct in-depth analyses of internal operations business relationships and the external development environment
Background and accurately identify core stakeholder groups and their areas of influence.We carefully study relevant laws regulations and benchmarking research. Using the 21 topics outlined in the
Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 - Sustainability Report (for Trial
Establishing a List Environmental Compliance Management
High-Quality Customer Service
of Topics Implementation) as a foundation and based on the Company’s fundamentals and industry practices while also
considering external public opinion analysis and expert recommendations the Company finalized a list of 24 material
Data Security and Customer Privacy Protection
topics in 2025.Corporate Governance Compliance
We identified and assessed the material topics and developed a materiality matrix based on two dimensions: impact Energy Utilization
Pollutant Emissions
materiality and financial materiality. Digitalization and Intelligent Development
Stakeholder
Engagement and Through the 2025 stakeholder survey the Company referenced external stakeholders’ assessments of the impact Supply Chain Security Anti-Commercial Bribery and Anti-Corruption
Topic Materiality materiality of each topic and combined them with internal stakeholder feedback to analyze and evaluate the impact Communications with Stakeholders Compliance and Risk Control
Assessment materiality of each material topic ultimately deriving a comprehensive impact materiality assessment. Financial Contribution to Society Circular Economy Response to Climate Change
Waste Disposal
materiality was evaluated through internal stakeholder scoring taking into account the likelihood of risks and
Water Resource Utilization Ecosystem and Biodiversity Protection
opportunities occurring and the extent of their financial impact to judge and score each material topic.Anti-Unfair Competition
Equal Treatment of Small and Medium-Sized Enterprises
Topic Report The results of the topic materiality assessment are summarized in the form of a matrix diagram.Due Diligence
In 2025 the Company drawing on industry practices added “Digitalization and Intelligent Development” as a material topic andmerged protection of shareholders’ rights and interests and ESG governance-related content into the “Corporate GovernanceCompliance” topic. The results of the materiality analysis are as follows: Rural Revitalization
Statement of
Materiality Topics
Materiality to Corporate Finance
Dual Material Topics Navigation Safety Management High-Quality Customer Service Data Security and Customer Privacy Protection
Financial Material Energy Utilization Response to Climate Change Waste Disposal Digitalization and Intelligent Development Compliance and
Topics Risk Control Environmental Compliance Employee Rights and Development Corporate Governance Compliance
Management
Impact Material Environmental Compliance Management Employee Rights and Development Occupational Health and Safety Corporate Occupational Health and Safety Anti-Commercial Bribery and Anti-
Topics Governance Compliance Energy Utilization Corruption
Navigation Safety Management
Circular Economy Water Resource Utilization Pollutant Emissions Ecosystem and Biodiversity Protection Supply Chain Response to Climate Change Anti-Unfair Competition
Issues of Low High-Quality Customer Service
Security Equal Treatment of Small and Medium-Sized Enterprises Contribution to Society Rural Revitalization Anti-
Importance Circular Economy Compliance and Risk Control
Commercial Bribery and Anti-Corruption Anti-Unfair Competition Communications with Stakeholders Due Diligence Data Security and Customer Privacy Protection
Water Resource Utilization Communications with Stakeholders
Technology Ethics (the Company’s business scope does not involve scientific research technology development or other Digitalization and Intelligent Development
N/A Topics
activities sensitive to technology ethics such as life sciences and artificial intelligence) Pollutant Emissions Due DiligenceSupply Chain Security
Waste Disposal
Note: Equal Treatment of Small and Medium-Sized
1. Dual materiality topics refer to those of both financial materiality and impact materiality. Ecosystem and Biodiversity Enterprises
Protection
2. Financial materiality topics refer to those of financial materiality only. Financial materiality refers to whether the corresponding topic is expected Contribution to Society
to have a significant impact on the Company’s business model business operations development strategy financial position operation results cash
flows financing methods and costs in the short medium and long term. Rural Revitalization
3. Impact materiality topics refer to those of impact materiality only. Impact materiality refers to whether the Company’s performance on the
respective topic will have an actual or potentially significant impact on the economy society and the environment.
2526
Impact Material i ty on Economic Social and Environmental AspectsEnvironmental Social and Governance Report 2025 Sound Governance and Compliance as the Foundation
Corporate Governance Board of Shareholders
The Company convenes and holds general meetings of shareholders in strict accordance with the Shanghai Stock Exchange
Governance Framework Listing Rules the Articles of Association and the Rules of Procedure for Board of Shareholders. It treats all shareholders equally ensuring that all shareholders particularly minority shareholders enjoy equal status and rights.The Company strictly complies with relevant laws and regulations including the Company Law of the People’s Republic of
China and the Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operation. It has In 2025 the Company held a total of 6 general meetings of shareholders
established a Board of Shareholders and a Board of Directors forming an internal governance structure characterized by clear
division of responsibilities effective checks and balances scientific decision-making and coordinated operations. This structure including 1 annual shareholders' meeting and 5 special meeting of shareholders
ensures lawful and compliant operations timely and accurate information disclosure and standardized and effective internal
controls effectively safeguarding the interests of the Company and its investors. during which 28 proposals were reviewed and approved.Board of
Shareholders
Strategic Committee
Board of Directors
Nomination Committee
Board of
Directors As the Company’s decision-making body the Board of Directors performs its duties in accordance with relevant laws and
Audit Committee regulations and the Articles of Association focusing on the Company’s development strategy and faithfully fulfilling the
Board Secretary Board Office responsibilities of Board of Directors entrusted by shareholders. The Board of Directors has established an Audit Committee
a Nomination Committee a Compensation and Evaluation Committee and a Strategic Committee. Each committee carries out
Compensation and Evaluation
Committee its duties in accordance with the Articles of Association and the rules of procedure for the respective committees providing
General Securities Investment
Manager Department objective and prudent evaluations of major company matters and enhancing the scientific efficiency of the Board of Directors’
Audit and Supervision decision-making.Department
Legal Affairs Department
President’s Office
Asset Management In 2025 the Board of Directors held 18 meetings reviewing and approving 69 proposals with a
Department
director attendance rate of 100%;
A total of 14 committee meetings were held reviewing 44 proposals including:
Audit Committee: 5 meetings 22 proposals reviewed;
Nomination Committee: 0 meetings 0 proposals reviewed;
Strategic Committee: 1 meetings 7 proposals reviewed;
Compensation and Evaluation Committee: 8 meetings 15 proposals reviewed.Highton Development Organizational Structure
2728
Key Performance Key Performance
Human Resources and
Administrat ion Center
Digital and Intel l igent
Management Center
Financial Management Center
Ship Management Center
Marketing Center
Domestic Trade and Shipping
Center
Foreign Trade and Shipping
CenterEnvironmental Social and Governance Report 2025 Sound Governance and Compliance as the Foundation
Diversity of Board of Directors Board Effectiveness Evaluation
The Company’s directors are elected or appointed in accordance with the Company Law of the People’s Republic of China and In 2025 the Company systematically revised the Rules of Procedure of the Board of Directors the Working System for
the Articles of Association . Based on the Company’s development needs the selection of directors fully considers a balanced Independent Directors and the working rules of relevant committees further clarifying the rights and responsibilities of
mix of gender age professional expertise educational background and academic qualifications actively promoting diversity independent directors and optimizing decision-making procedures thereby effectively ensuring the Board’s standardized
within the Board of Directors. Directors leverage their professional expertise to provide scientific and reasonable advice on the independent and efficient performance of its duties. Through institutional improvements and dedicated training for directors the
Company’s business decisions and standardized operations. effectiveness of Board operations and the scientific rigor of decision-making continued to improve with the role of independent
oversight and checks and balances further strengthened. The Company comprehensively presented its governance achievements
through the annual Board of Directors’ work report highlighting the Board’s critical role in promoting the Company’s steady
As of the end of the Reporting Period the Company’s Board of Directors comprised 7 members development. During the Reporting Period the Company conducted both self-evaluations and external evaluations of Board
effectiveness through questionnaires focusing on dimensions such as major decision-making strategic leadership corporate
1 14.29 3 governance risk management and control and routine oversight and collected feedback.including female directors representing %; there were independent directors
accounting for 42.86% of the Board.Remuneration of Directors and Senior Management
Gender Structure Age Structure Educational Background Structure The Company strictly complies with the Company Law of the People’s Republic of China the Corporate Governance Code for
Listed Companies the Articles of Association and the Company’s remuneration management policies. It regularly discloses
Female：1 Aged 30–50：2 Below Bachelor’s Degree：1 the remuneration of directors and senior management in the annual report materials of the general meetings of shareholders
or relevant announcements. The actual remuneration received by all directors and senior management as of the end of the
Reporting Period is detailed in the Company’s 2025 Annual Report.The Company has established policies such as the Remuneration Management Measures and Performance Management System
creating a comprehensive remuneration and performance evaluation framework for senior management. By combining short-
term incentives with long-term planning the Company aligns the personal interests of management team members with the
Male：6 Aged 50 and above：5 Bachelor’s Degree and Above：6 Company’s long-term sustainable development. This approach effectively motivates senior management enhances operational
efficiency and quality and ensures the achievement of the Company’s business objectives. By establishing a comprehensive
evaluation system that includes KPIs such as daily charter rate compliance performance growth rate profit target achievement
Board Independence rate labor efficiency improvement and internal operational efficiency as well as ESG indicators including metrics for safety and
environmental protection employee training and investor relations management the Company combines short-term and long-
The Company’s independent directors consistently uphold professionalism and independence strictly following relevant laws term incentives. This approach drives improvements in operational management and promotes the Company’s sustained and
regulations and the Articles of Association and faithfully and diligently performing their duties. The Company emphasizes the healthy development.active role of independent directors in corporate governance and has established rules for independent directors’ meetings
ensuring that their contributions are fully utilized to enhance the scientific and professional quality of Board of Directors’ In addition the Company has implemented stock and stock option incentive plans to reward personnel in key positions. The
decision-making. incentive program covers directors senior management core management personnel and key (technical) business staff. Eligible
participants are granted restricted stocks and stock options effectively aligning the interests of shareholders the Company and
Independent Directors Non-Independent Whether Independent the core team members. This further establishes and strengthens a long-term incentive and restraint mechanism encouraging all
(Person) Directors (Person) Directors Serve as the Chairman parties to focus collectively on the Company’s long-term development.Audit Committee 2 1 Yes Shipping Law
Professional
Background
Nomination Committee 2 1 Yes
Strategic Committee 1 2 No Accounting
Compensation and 2 1 Yes
Evaluation Committee Professional Background of Independent Directors
2930
Key PerformanceEnvironmental Social and Governance Report 2025 Sound Governance and Compliance as the Foundation
Protection of Investors’ Rights and Highton Development participated in the “I Am a Shareholder” special exchange event for SSE-listed companies Case
Interests On December 4 2025 Highton Development as a core participant collaborated with China Securities and the SSE to successfully host the “I Am a Shareholder” visit to listed companies. Company executives provided investors with a
systematic introduction to the business model and development strategy and engaged in in-depth discussions on key
concerns such as financial performance. Through on-site presentations and face-to-face communication investors gained
Investor Relations Management a direct understanding of the Company’s professional operational capabilities and corporate value. The event effectively
built a bridge for transparent communication strengthened investor trust and enhanced the Company’s recognition in
The Company has established systems such as the Investor Relations Management System and the Major Business and the capital market.Investment Decision Management System . It discloses information through channels including the Securities Times China
Securities Journal Shanghai Securities News and the CNINFO website. By leveraging online performance briefings on-site
research visits email communication and investor relations interaction platforms the Company strengthens communication
and engagement with investors and potential investors. It continuously improves the mechanisms for investor communication
reception and service addresses investors’ inquiries regarding the Company’s business development and actively showcases
the Company’s operational achievements to the capital market while conveying the Company’s investment value.The Company actively conducts specialized investor engagement activities and participates in strategy meetings and
“I Am a Shareholder” Visit to SSE-Listed Companies
roadshow events. Adhering to a “Going Out and Bringing In” approach it has built a diversified and multi-dimensional investor
communication platform achieving a simultaneous enhancement of investor relations management effectiveness and corporate
strategic transparency. In 2025 the Company held a total of 5 performance briefings throughout the year.Information Disclosure
The 2025 Drybulk Shipping Market Convention & Vessel Visit was successfully held Case
The Company has formulated and implemented the Information Disclosure Management System aiming to establish a
standardized and orderly investor relations management mechanism. By regularly conducting investor interaction andFrom August 25 to 26 2025 Highton Development successfully held the “2025 Drybulk Shipping Market Conventionengagement activities the Company continuously enhances the standardization of its information disclosure ensuring open& Vessel Visit” in Ningbo and Zhoushan. Leading institutional investors and securities analysts were invited to jointly
transparent and efficient communication with investors safeguarding their legitimate rights and interests and continuously
discuss market prospects and visit the Company’s 180000-ton dry bulk vessel. Through expert presentations and
enhancing shareholder value. During the Reporting Period the Company was not subject to any penalties for violations related to
executive interactions the guests gained a deeper understanding of the dry bulk shipping market and strengthened
information disclosure.their trust in the Company.In 2025 the Company publicly disclosed a total of 4 periodic reports and 131 interim announcements.Protection of Shareholders’ Rights and Interests
The Company attaches great importance to ensuring reasonable investment returns for its shareholders while balancing the
Company’s capital requirements and principles of sustainable development. In strict compliance with relevant regulatory
requirements the Company has formulated the Fujian Highton Development Co. Ltd. Shareholder Dividend Return Plan for
the Next Three Years (2025-2027) to ensure that its profit distribution policy is sustainable stable and scientifically sound.The Company distributes dividends to shareholders in the form of cash shares or a combination of both. Subject to the
On-Site Photos of Vessel Visit Company’s profitability normal operations and long-term development priority is given to cash dividends to provide investors
with long-term and stable investment returns. For the 2025 fiscal year the Company plans to distribute a total cash dividend
of RMB 9277.71 (in ten thousand yuan) (including tax) representing 19.95% of the net profit attributable to
shareholders of the listed company.
31 32Environmental Social and Governance Report 2025 Sound Governance and Compliance as the Foundation
Compliance and Risk Management Impact Risk and Opportunity Management
Enhancing Risk Control
Governance The Company strictly complies with the Enterprise Income Tax Law of the People’s Republic of China and the Tax Collection
and Administration Law of the People’s Republic of China conscientiously fulfilling its tax obligations. It has established a
The Company has improved its refined management system to enhance operational management and ensure the compliance comprehensive financial management system and arranges for financial personnel to participate in various trainings organized by
of business operations and the effectiveness of risk management. Based on the internal control system the Company has tax authorities banks government departments or professional training institutions ensuring timely access to new policies and
established internal control policies such as the Major Information Internal Reporting System and continuously strengthens its updated information.risk compliance and internal control management framework. Internal management systems have been formulated for key
operational areas including financial management human resources safety management and material procurement promoting The Company has formulated the Related-Party Transaction Management Measures to regulate related-party transactions
the implementation of refined management and enhancing risk prevention capabilities. At the same time the Audit and ensuring that such transactions are conducted based on the principles of fairness impartiality and transparency. It strictly
Supervision Department performs its core responsibilities in internal control development and daily oversight. In terms of internal adheres to the information disclosure system to ensure that material information regarding related-party transactions is disclosed
control development it evaluates the reasonableness of the internal control environment including corporate governance and in a timely accurate and comprehensive manner.risk management systems improves internal control measures and develops internal control and audit manuals to standardize
internal operations and audit processes. In terms of daily oversight it conducts internal control audits operational inspections Improvement of Internal Control
special audits and on-site spot checks to strengthen compliance and risk management across business processes. In addition
the Company reinforces employees’ understanding of internal control and compliance management and raises legal awareness The Company strictly follows the requirements of the Corporate Internal Control Standards to establish and effectively implement
through training and other activities thereby laying a solid compliance foundation for the Company’s stable development. a comprehensive internal control system. It has developed detailed internal control policies and conducts regular evaluations of
internal control effectiveness as well as compliance risk assessments. A tracking checklist is maintained to identify and monitor
issues and relevant departments are organized to implement corrective actions in a closed-loop manner. During the Reporting
Period the Company did not identify any material or significant deficiencies in internal control and maintained effective internal
control over financial reporting in all material aspects.Strategy
Building Risk Management Capacity
Type of Explanation Impact Impact During the Reporting Period the Company actively organized internal training
Risk Description of Risk of Financial on Value Response MeasuresImpact Duration Chain programs focusing on strengthening compliance operations and enhancing
enterprise risk prevention capabilities helping employees build a robust risk
Regularly conduct defense. At the same time employees were selected to participate in external Under the complex international political environment
and geopolitical landscape changes in economic compliance and sanctions training covering key areas such as cash flow optimization and accounts
sanctions imposed by certain countries and port/ risk identification and receivable management strategies contract and tax review tax optimization and
assessment; Internal Risk and Compliance Trainingship regulatory policies may pose compliance risks.Cost Short
Policy If sanctions and regulatory compliance risks are compliance framework development decision-making based on financial analysis
increase medium Improve internal control
and Legal not adequately identified or if the complexity and Operations
Income and long systems and update and penetrative supervision and enterprise risk management. These initiatives
Risks frequent changes of relevant rules prevent timely
decrease terms operational manuals in a improved employees’ ability to respond to risks and enhanced their overall
and effective risk recognition the Company may
timely manner;
face investigations penalties sanctions or vessel business competence in a complex commercial environment.detentions resulting in business disruption and Optimize shipping routes to
economic losses. achieve route diversification.External Risk and Compliance Training
In the event of a compliance
Failure to effectively implement the requirements
Income Short penalty proactively
of relevant countries or ports or to comply with
Reputation decrease medium disclose information and
applicable sanctions and regulatory rules may result Operations
Risks Damage to and long communicate promptly with Metrics and Targets
in compliance penalties and negatively affect the
reputation terms stakeholders to mitigate
Company’s reputation.negative impact.In 2025 the Company did not experience any major risk incidents or significant legal or regulatory violations.
33 34Environmental Social and Governance Report 2025 Sound Governance and Compliance as the Foundation
Business Behaviors Whistleblowing Handling Process
The Company consistently regards integrity and anti-corruption as fundamental pillars of its development. Upholding the Reporting Channels
principle of honest and ethical operations the Company strictly complies with national and local laws and regulations including
the Anti-Monopoly Law of the People’s Republic of China and the Anti-Unfair Competition Law of the People’s Republic of China.It has established relevant policies and systems on anti-commercial bribery anti-corruption and the promotion of integrity in
professional conduct. In 2025 the Company did not receive any lawsuits or legal cases related to commercial bribery corruption
or unfair competition. In-person Phone Email Mail WeChat
Complaints
Anti-Commercial Bribery and Anti-Corruption
Audit and Supervision Department Relevant Departments
Written feedback on the
handling results provided
Standardizing Integrity Management within ten working days
Audit and Supervision Department conducts a
The Company places great importance on building an integrity-driven enterprise and strictly complies with relevant laws preliminary review of the reported matters Audit and
Supervision
and regulations. It has formulated internal policies such as the Anti-corruption Management System the Supervision Department
transfers
Management Measures and the Gift and Cash Registration Submission and Disposal System which set out provisions on relevant
integrity investigations whistleblowing management related incentives and disciplinary actions and integrity requirements for materials
suppliers. These measures are designed to strengthen employees’ professional ethics and foster a clean upright and efficient Within the scope of Outside the scope of
corporate culture. As the highest body of responsibility and oversight the Board of Directors bears ultimate responsibility report acceptance report acceptance
for the formulation of the Company’s anti-bribery and anti-corruption policies the evaluation of their effectiveness and the
final outcomes of their implementation. The Audit and Supervision Department coordinates and advances integrity building
and oversight responsibilities. It is responsible for integrity education and communication system improvement and the
establishment of whistleblowing channels and organizes the investigation of integrity-related leads the handling of cases and Collection of information investigation and
the public disclosure of outcomes. It also reports regularly to the General Manager on work progress risk conditions and the evidence gathering and verification of facts
handling results of major cases. In 2025 the Company conducted 8 internal special audits on integrity and experienced no
major corruption incidents.All employees are required to sign an Integrity Commitment Letter . In 2025 the signing rate of integrity commitment
Integrity in Unsubstantiated: letters among the Company’s shore-based employees was 100%. Substantiated
Employment feedback provided
and Cooperation When negotiating business with suppliers or partners the Company requires the signing of an Integrity Commitment
Letter.The Company has established the Internal Reporting System to improve and formalize reporting channels.Tel.: 0591-83358750;
Reporting Prepare an investigation report and submit it to
Channels Mail: Audit and Supervision Department 42/F Shenglong Global Tower No. 23 Changting Street Ninghua Subdistrict the relevant responsible person.Taijiang District Fuzhou
Online Reporting: lianzheng@fz-highton.com
The Audit and Supervision Department strictly protects the confidentiality of whistleblowers’ information with designated Follow-up on handling results
personnel responsible for the receipt and registration of reports.Protection of During investigations investigators strictly comply with the Company’s rules and regulations and maintain strict
confidentiality regarding the matters under investigation. Any violation of these requirements will be subject to strict and
Whistleblowers Filing and archivingsevere disciplinary action by the Company.When granting whistleblowing rewards or publicizing related cases the Company strictly prohibits the disclosure of any
information that could identify whistleblowers.End
The Company has established and continuously improved its integrity investigation mechanism. The Audit and Supervision
Integrity Department is responsible for investigating cases involving suspected violations of discipline or regulations by employees
Investigations and submitting investigation reports upon completion. Any violation of the Company’s Anti-corruption Management System
will be subject to disciplinary action as appropriate.
35 36Environmental Social and Governance Report 2025 Sound Governance and Compliance as the Foundation
Strengthening Integrity Awareness Anti-Unfair CompetitionThe Company attaches great importance to cultivating employees’ awareness of integrity. Through measures such as “Sunshine The Company adheres to the principles of integrity in operations and fair competition and strictly complies with and implementsTalks” themed onboarding training for new employees the Company provides explanations of national laws and regulations on the Anti-Unfair Competition and Anti-Monopoly Management System to ensure that all business activities are lawful and
anti-corruption and related matters and actively carries out communication education and training on anti-corruption and anti- compliant. The Company has established a scientific
bribery continuously strengthening employees’ awareness of integrity. The Company also emphasizes the development of a and standardized management system. The Board of
culture of integrity by installing suggestion boxes and displaying integrity-themed posters on its premises. During the Reporting Directors is responsible for the formulation of anti-
Period the Company conducted integrity awareness campaigns for suppliers laying a solid foundation of probity for the unfair competition and related policies the evaluation
Company’s sustainable and healthy development. of their effectiveness and the final outcomes of their
implementation. The Audit and Supervision Department
serves as the functional department responsible for anti-
monopoly and anti-unfair competition management
and is in charge of formulating and promoting relevant
management systems covering key areas such as
employee codes of conduct and marketing practices. It
provides guidance and supervision over related activities
and focuses on preventing unfair competition practices
including false advertising commercial bribery and
infringement of trade secrets thereby strengthening
Conducting Internal Anti-Unfair Competition Training
the Company’s compliance defenses at both the
institutional and governance structure levels. During the
New Employee Training – Sunshine Talks Reporting Period the Company revised and improved the Employee Handbook explicitly prohibiting any form of monopoly or
unfair competition. It strictly forbids the disclosure of the Company’s trade secrets or the improper acquisition of competitors’
information and prohibits entering into monopoly agreements with competitors or counterparties that exclude or restrict
competition. These revisions further strengthened employees’ code of conduct regarding anti-unfair competition.In 2025 the Company conducted specialized anti-unfair competition training internally to strengthen awareness-raising
and education for employees and business partners enhancing their understanding and capabilities for compliant and fair
competition. At the same time shore-based employees were required to sign confidentiality commitment letters and business
partners were encouraged to fulfill their compliance commitments continuously strengthening legal awareness and compliant
practices on both sides and jointly safeguarding a fair and competitive business environment.Anti-Corruption and Anti-Bribery Training for Business Partners Integrity Culture Promotional Posters
In 2025 the Company conducted 19 anti-commercial bribery and anti-corruption training sessions.Among these 2 sessions were provided to directors and senior management
with a training coverage rate of 100% for directors and senior management.A total of 269 employee attendances participated in anti-commercial bribery and anti-corruption training.
3738
Key PerformanceEnvironmental Social and Governance Report 2025 Green and Low-Carbon Safeguarding the Ecosystem
Green and Low-Carbon
Safeguarding the Ecosystem
In the face of global climate challenges Highton Development actively responds to the national “Dual-Carbon” targets promotes
green transformation and implements climate actions steadily advancing toward a greener path in the journey of protecting the
Earth’s ecosystem.Green and Low-Carbon Operation
Strengthening Environmental Management
Optimizing Resource Utilization
Biodiversity Conservation
39 40Environmental Social and Governance Report 2025 Green and Low-Carbon Safeguarding the Ecosystem
Green and Low-Carbon Operation Participation in the Inaugural Conference of the National Industry-Education Integrating Community for Green and Intelligent Shipping Industry Case
On September 19 2025 the inaugural conference of the National Industry-Education Integrating Community for Green
With the issue of carbon emissions in the shipping industry receiving heightened attention from the international community and Intelligent Shipping Industry was held at Quanzhou Ocean Institute. Highton Development’s subsidiary Dai Qin
requirements standards and regulations for low-carbon and environmentally friendly shipping have been continuously International participated in the conference as a board member representative of the Company. Moving forward it will
strengthened under the ongoing implementation of the Paris Agreement . In April 2025 the Marine Environment Protection leverage the parent company’s resources in fleet capacity and talent development to actively engage in the community’s
Committee(MEPC) of IMO approved the draft of “IMO Net Zero Framework” which include new standards for ship fuels and a collaborative initiatives jointly promoting the development of green and intelligent shipping. The community is jointly
GHG emissions pricing mechanism. This marks an important step forward for the IMO in establishing a legally binding global led by Shandong Shipping Corporation Shanghai Maritime University and Quanzhou Ocean Institute in collaboration
framework for reducing GHG emissions from ships. To align with the inevitable global trend of sustainable development in the with industry organizations academic institutions enterprises and research institutes. Its goal is to establish an industry-
shipping industry—characterized by green energy-efficient low-carbon and environmentally friendly practices—the Company education integrated cloud service ecosystem promote the green and intelligent transformation of the shipping industry
continuously improves its internal governance system. By identifying assessing and actively responding to the risks and and cultivate high-quality technical talent.opportunities posed by climate change the Company implements energy-saving and emission-reduction measures thereby
enhancing its capacity for sustainable development.Governance
The Company places great importance on climate change. To ensure the orderly implementation of climate governance it
has established an ESG governance structure composed of the Board of Directors and the ESG Working Group. The Board is
responsible for providing leadership and oversight on climate-related matters as well as formulating strategies policies and
regulations related to climate change. The ESG Working Group is responsible for the operational execution including assessing Governing Unit Conference Venue
climate-related risks and opportunities and developing and implementing climate response measures.The Company has consistently adhered to a development model that is resource-efficient and environmentally friendly. It
has established management systems such as the Procedure of Energy Saving . The General Manager as the primary person
responsible for energy management is in charge of regularly reviewing energy management reports and overseeing related
matters. The Ship Management Center leads the daily management of energy utilization while functional departments such
as the Engine Department and the Marine Department are responsible for the proper use and control of energy within their
respective areas. For onshore office operations the Company has formulated the Office 6S Management System ensuring
that lighting and air-conditioning equipment are used reasonably while meeting normal work requirements thereby conserving
energy.
41 42Environmental Social and Governance Report 2025 Green and Low-Carbon Safeguarding the Ecosystem
Strategy
Based on global shipping development trends and the Company’s own business characteristics the Company conducts in-depth identification assessment and analysis of potential climate-related risks and opportunities it faces. On this basis it actively adjusts its business development
strategies and resource allocation to enhance its adaptive capacity in responding to climate change.Explanation of Impact Impact on Value
Risk Type Risk Description Response Measures
Financial Impact Duration Chain
With the deepening implementation of China’s “Dual-Carbon” targets and the IMO’s strategy
Closely monitor domestic and international shipping environmental regulations and policy
Policy and for reducing greenhouse gas emissions from ships global regulations on carbon emissions
Cost increase Long-term Operations developments to ensure that company operations remain compliant and can adapt promptly to
Legal Risks in the shipping industry are becoming increasingly stringent imposing higher compliance
regulatory changes.requirements on ship energy efficiency and carbon intensity.Comprehensively promoted the installation of streamlined housings and hub vortex absorbed
fins across the fleet and actively evaluate the application of energy-saving technologies such
To comply with MARPOL’s mandatory requirements for ship energy efficiency the Company
Technological as axle generators and variable-frequency control systems. In conjunction with the formulation
needs to continuously introduce and apply various energy-saving technologies and equipment Cost increase Mid-term Operations
Risks and implementation of The Ship Energy Efficiency Management Plan (SEEMP) set clear energy
to drive fleet technological upgrades.efficiency targets and implementation milestones optimize resource allocation and continuously
reduce ship energy consumption through refined management.Against the backdrop of accelerated global clean energy development customer preferences
Steadily advance ship energy-saving retrofits and fleet upgrades to support the transition of the
for low-carbon energy products and green shipping services are increasing. The Company’s Operations
Market Risks Income decrease Long-term business structure toward green and low-carbon operations. While consolidating existing dry bulk
current main cargoes are coal and other dry bulk goods and in the future it may face business Downstream
transport business enhance adaptability and competitiveness in the global market.pressure from structural adjustments in related shipping demand.If the Company fails to effectively implement requirements in energy efficiency management
Income decrease Actively implement the concept of green shipping improve the quality and transparency of
Reputation emission reduction practices and environmental information disclosure it may lead to Operations
Damage to Long-term environmental information disclosure and strengthen effective communication with investors
Risks compliance issues or environmental incidents thereby affecting the trust of investors Downstream
reputation customers and other stakeholders to maintain the Company’s image as a responsible enterprise.customers and other stakeholders and damaging the Company’s brand reputation.Extreme marine weather events such as typhoons and tsunamis can affect safe ship navigation Cost increase Develop contingency plans for extreme weather such as typhoon prevention and response
Operations
Acute Risks causing accidents that result in vessel and cargo damage personal injury or loss disruption of Fixed assets Short-term measures clearly define emergency work deployment and effectively safeguard the safety of
Downstream
shipping routes and delays in transportation schedules. depreciation personnel and vessels.Persistent high-temperature variations and rising sea levels may affect shipping routes and Continuously monitor long-term changes in business environments such as shipping lanes and
Income decrease Operations
Chronic Risks schedules as well as cargo loading unloading and transportation potentially causing delays in Long-term ports and plan routes and onboard operations accordingly to ensure smooth completion of
Cost increase Downstream
cargo delivery. transportation services.
4344
Transformation Risks Physical RisksEnvironmental Social and Governance Report 2025 Green and Low-Carbon Safeguarding the Ecosystem
Opportunity Explanation of Impact Impact on Value
Description Response Measures
Type Financial Impact Duration Chain
Continue carrying out energy-saving retrofit projects and implement refined management
By implementing ship energy-saving upgrades and promoting digital and intelligent business of indicators such as fuel consumption and spare parts usage to enhance vessel operational
Resource
transformation resource consumption can be effectively reduced and vessel operational Cost reduction Short-term Operations efficiency;
Efficiency
efficiency improved. Actively explore innovative business models based on the “digitalization + shipping” approach to
comprehensively improve the Company’s digital and intelligent management capabilities.Reducing the use of conventional energy and transitioning to low-emission alternative energy Actively apply clean energy and explore the feasibility of biomass fuels;
Cost reduction Upstream
Energy Source can optimize the energy structure lower pollution control costs and meet the demand for low- Long-term
Income increase Operations Retrofit more operating vessels with shore power systems to reduce conventional fuel
carbon shipping services while ensuring stable energy supply. consumption and lower carbon emissions.While actively expanding the global dry bulk shipping network continuously strengthen ship
The global green transition is driving new demand for low-carbon shipping services. Increasing
Market Operations energy efficiency management and green operations enhance low-carbon shipping service
customer preference for green supply chains presents emerging opportunities for the Company Income increase Long-term
Opportunities Downstream capabilities meet customer demands for green supply chains and gain a competitive market
to expand services and secure new orders.advantage.Gradually improve a more extensive transport network extending services globally;
Expanding the global route network and improving vessel operational efficiency can bring more Upstream
Cost reduction
Adaptability business opportunities enhance the Company’s capacity to response to climate change and Long-term Operations Develop a light-asset operational model to ensure a high degree of alignment between fleet size
Income increase
maintain market competitiveness. Downstream capacity structure and route demand thereby maintaining operational stability and efficiency and
better adapting to market needs and uncertainties brought by climate change.Time definitions:
When describing the time horizon of risks and opportunities we categorize them into three periods to more clearly reflect their potential impact on the Company’s future development: Short-term: Within 1 year after the end of the Company’s sustainability Reporting Period (inclusive of 1 year); Medium-term: 1 to 5 years after the end
of the Company’s sustainability Reporting Period (inclusive of 5 years); Long-term: More than 5 years after the end of the Company’s sustainability Reporting Period.
45 46Environmental Social and Governance Report 2025 Green and Low-Carbon Safeguarding the Ecosystem
Impact Risk and Opportunity Management Strengthening Energy Management
The Company continuously strengthens its climate change risk management by identifying and assessing climate-related In line with the MEPC.1/Circ.683 Guidelines for the Ship Energy Efficiency Management Plan (SEEMP) the Company has
risks and opportunities that may affect its operations. Based on the Company’s actual situation it develops and timely adjusts developed its fleet-wide Ship Energy Efficiency Management Plan (SEEMP). An energy efficiency operational indicator
response strategies. (EEOI) is applied to all vessels as an assessment metric to monitor fuel efficiency evaluate the impact of voyage planning
and new technologies on fuel usage and continuously optimize vessel performance to improve fuel efficiency. At the same
To further enhance the Company’s capacity to adapt to climate change and ensure effective control and response to related
time the Company actively takes measures to ensure that all vessels operating in overseas regions comply with the current
risks the Company adheres to a low-carbon operational model and continuously optimizes vessel performance. By applying
Energy Efficiency Existing Ship Index (EEXI) requirements. Some of the Company’s vessels in overseas waters as well as
shore power retrofitting energy-saving equipment and implementing refined operational management it steadily improves
vessels operating in both domestic and international routes have completed technical assessments for EEXI and passed the
energy utilization efficiency and reduces greenhouse gas emissions. The Company has also established a comprehensive
corresponding classification society audits.emergency management system to prevent and mitigate the adverse impacts of natural disasters and extreme weather events
safeguarding personnel and vessel safety and laying a solid foundation for sustainable development.Key Metrics Unit 2024 2025
Response to Extreme Weather Total Direct Energy Consumption tce 237335.44 347422.38
The Company has established the Heavy Weather Sailing Guidelines to standardize safe operational procedures for ships
navigating in adverse conditions such as strong winds and high waves. In addition it has formulated related procedures including Total Fuel Oil Consumption ton 165920.97 218290.14
the Typhoon Preparedness Procedures and Typhoon Contingency Plan and prepares an annual typhoon prevention and response
plan. Before each typhoon season the Company holds an annual typhoon preparedness meeting establishes a Typhoon Total Indirect Energy Consumption tce 129.86 135.39
Prevention and Response Command Team to oversee vessels’ typhoon-related operations coordinate production schedules and
strengthen monitoring of sea conditions and weather as well as tracking and analyzing typhoon trends. At the same time the Office Electricity Consumption kWh 111696.32 119412.13
Company urges all ship captains to conduct comprehensive inspections and maintenance of vessel equipment ensuring that
all systems are ready for immediate use and in good condition during emergency typhoon operations thereby continuously Number of Shore Power Uses Times 170 179
strengthening the capability to prevent and respond to extreme weather.Total Shore Power Consumption kWh 944897.83 982195.20
Total Energy Consumption tce 237465.30 347557.77
Metrics and Targets
Energy Consumption Intensity tce/RMB 1 million (revenue) 64.90 78.23The Company actively responds to global calls for greenhouse gas reduction aligning with China’s national goals of “carbonNumber of Vessels Completed with EPL Retrofitpeaking by 2030” and “carbon neutrality by 2060” as well as the international 2023 IMO Strategy on Reduction of GHG Ship 40 56
Emissions from Ships . Through energy-saving retrofits vessel energy efficiency management and other measures the Company
Number of Vessels Passed EEXI Classification Audit 56
continuously promotes green transformation aiming to achieve carbon neutrality by 2060. Ship 40
The Company continuously monitors vessel carbon intensity indicator (CII) in accordance with operational conditions and IMO
requirements and actively implements measures such as vessel retrofits to promote the optimization and improvement of vessel
carbon intensity ratings.Key Performance Unit 2024 2025
Total GHG Emissions tCO2e 527262.94 771778.22
GHG Emission Intensity tCO2e/RMB 1 million (revenue) 144.11 173.71
Direct Greenhouse Gas Emissions (Scope 1) tCO2e 526695.97 771010.72
Indirect Greenhouse Gas Emissions (Scope 2) tCO2e 566.97 591.12
Other Indirect Emissions (Scope 3) tCO2e / 176.38
Note: Scope 1 includes carbon emissions from self-owned dry bulk vessels multipurpose heavy-lift vessels and official vehicles; Scope 2 includes
carbon emissions from purchased electricity for onshore offices and the use of shore power by vessels; Scope 3 only accounts for carbon emissions
from employee business travel.
47 48Environmental Social and Governance Report 2025 Green and Low-Carbon Safeguarding the Ecosystem
During the Reporting Period to ensure the continued stable and robust operation of the Company’s fleet and uphold the concept
Promoting Vessel Energy Saving and Carbon Reduction of sustainable development the Company conducted intermediate and special inspections on 26 vessels. It also continuously
carried out drydocking maintenance energy-saving and emission-reduction measures and low-carbon environmentally friendly
The Company continuously advances energy-saving and carbon reduction initiatives through multiple measures including equipment upgrades and optimizations for both existing and newly acquired vessels.energy-efficient technology retrofits and refined vessel operational management. In terms of incentive mechanisms the company
has established a fuel-saving reward system for the foreign-shipping fleet providing fuel-saving bonuses to vessels that meet the Specialized Training on Green Energy Conservation and Environmental Protection Case
requirements thereby motivating the fleet to implement energy-saving measures.During the Reporting Period the Company organized specialized
Vessel Energy-Saving Retrofits
training sessions focusing on the application of the latest energy-
Shore Power Conversion saving technologies and practical experiences on current vessels. The
The Company promotes the installation of shore power facilities on operating vessels and has established management usage maintenance sessions explored topics such as energy-saving retrofits efficiency
and operational procedures for these facilities effectively reducing air pollutant emissions from ships while in port. As of the end of the
Reporting Period the Company’s vessels had used shore power a total of 179 times with a total consumption of 982195.2 kWh. improvement and optimization of energy management. By sharing
practical cases of energy-saving and consumption reduction the
Equipment Upgrades training provided employees with reference ideas and methods
By equipping operating vessels with energy-saving devices such as streamlined housings and hub vortex absorbed fins (HVAFs) the further strengthening their confidence in promoting energy-saving and
Company has achieved approximately a 5% reduction in daily fuel consumption during navigation. During berthing periods the installation of emission-reduction initiatives.fuel and cylinder liner electric heaters to replace traditional fuel-fired boilers has reduced daily fuel consumption from 2.5 tons to 2.0 tons
a decrease of 20%. As of end of the Reporting Period a total of 30 vessels in the Company’s fleet had been retrofitted with streamlined
housings and HVAFs.Coating Optimization Deepening Strategic Cooperation to Build Green Shipping Case
The Company actively applies organic silicon coatings on vessel hulls to reduce surface friction resistance thereby lowering fuel
consumption and associated emissions and cutting related carbon emissions by approximately 8%. As of end of the Reporting Period the Partnering with COSCO Shipping Heavy Industry Promoting High-Quality Green Shipping
Company completed the application of high-performance organic silicon hull coatings on 34 vessels.On June 13 2025 Highton Development signed a strategic cooperation
agreement with COSCO Shipping Heavy Industry with both parties
Vessel Operations Managementfocusing on deepening collaboration in the fields of “green and low-Equipment Maintenance carbon” and “digital intelligence”. Upholding its mission of “Aiming at theThe Company standardizes the daily maintenance inspection and record-keeping of vessel equipment to ensure optimal performance ocean making China’s shipping business better and stronger” Highton
promptly identify potential energy efficiency risks and avoid unnecessary energy consumption. For example unused compartments’ air Development is highly aligned with COSCO Shipping Heavy Industry
conditioning is stopped by closing dampers and internal air recirculation is used to reduce heat loss based on environmental conditions.across the industry chain. Moving forward the two parties will deepen
cooperation in key areas such as green low-carbon initiatives and
Waste Heat Recovery
digitalization jointly supporting the national strategy of building a strong Highton Development reached a strategic cooperation
The Company uses exhaust gas boilers as a heat recovery system converting waste heat from exhaust gases into steam to support vessel agreement with COSCO Shipping Heavy Industry
heating and fuel heating effectively reducing fuel consumption. maritime nation.Engaging with the Maritime and Port Authority of Singapore to Optimize Green Fleet Operations
Voyage Optimization On June 19 2025 Highton Development held in-depth discussions
The Company continuously implements refined vessel operational management and while ensuring safe navigation it comprehensively with the Maritime and Port Authority of Singapore (MPA) on vessel
considers total voyage distance fuel consumption weather conditions and other factors to select the optimal routes and speeds thereby
reducing energy consumption. decarbonization strategies. Key topics included ship decarbonization
strategies the Green Ship Program and Singapore’s ship registration
incentives. MPA representatives expressed their willingness to explore
Energy Conservation and Consumption Reduction Promotion
sustainable shipping solutions together with Highton Development
Energy Conservation Exploration supporting the Company in achieving its low-carbon objectives. Through
The Company actively researches axle generators and variable-frequency control systems as potential upgrades for energy-saving and this collaboration Highton Development will leverage Singapore’s
emission-reduction equipment. advantage as an international shipping hub to further optimize fleet
The Maritime and Port Authority of Singapore visited
operational efficiency strengthen the cultivation of green shipping talent Highton Development
Energy Conservation Promotion
and jointly promote sustainable development in the industry.The Company periodically organizes theme-based training and educational activities related to energy conservation to enhance employees’
awareness of energy-saving and emission-reduction practices.
49 50Environmental Social and Governance Report 2025 Green and Low-Carbon Safeguarding the Ecosystem
Strengthening Environmental Environmental Awareness Activities and Training Case
Management In 2025 the Company actively carried out themed public welfare environmental protection activities such as “Protect Riverbanks Share Clear Waters and Blue Skies” and “Low-Carbon and Green Travel”. By organizing employees to
participate in riverside litter cleanup environmental knowledge training and cycling practices the company effectively
The Company strictly complies with the Marine Environment Protection Law of the People’s Republic of China the International enhanced employees’ awareness of green living environmental protection and low-carbon lifestyles.Convention for the Prevention of Pollution from Ships (MARPOL) the International Safety Management (ISM) Code and other
relevant domestic and international laws regulations and conventions. Guided by a strong sense of social responsibility and
mission the Company steadfastly implements the concept of environmental compliance management continuously improves
its environmental management system and carries out various environmental protection initiatives. This ensures that the
Company’s business operations consistently align with global environmental standards contributing to the green and sustainable
development of the international shipping industry.Governance
Management System
Environmental Public Welfare Activities
The Company has established relevant control procedures such as the Procedures for Preventing Environmental Pollution
and Procedures for Preventing Oil Pollution forming a comprehensive environmental protection management system andframework. Adhering to the safety and environmental protection policy of “Safety First Health and Environmental ProtectionPeople-Oriented and Continuous Improvement” the Company aims to prevent harm to the environment particularly the marine
environment and ensure that its operations comply with relevant international conventions and laws and regulations. In 2025
the Company did not incur any major administrative penalties from ecological or environmental authorities due to environmental
incidents.The Board of Directors as the highest leadership and decision-making body for the Company’s environmental management
assumes ultimate responsibility for the management of environmental protection policies strategies targets and major risks
and supervises environmental performance. The General Manager serves as the primary responsible person for environmental
management (including pollutants and waste management) tasked with formulating the Company’s environmental protection
policies designating personnel to monitor vessel safe operation and pollution prevention and coordinating internal and external Environmental Training
activities. The Marine Department Engine Department and Systems Office collaboratively manage vessel safety and pollution
prevention investigate and analyze pollution incidents and perform related tasks. Relevant supervisors periodically oversee
and inspect these activities to ensure that operational waste pollutants and other substances that may harm the environment
generated during vessel operations are handled strictly in accordance with applicable regulations.Qualification Certification
Training and Education All company vessels are equipped with environmental protection facilities in accordance with relevant international conventions
or domestic ship inspection regulations and undergo regular maintenance. The vessels have obtained the corresponding
In accordance with the Guidelines for Education Drills and Exercises management procedure the Company defines education certifications including Cargo Ship Safety Certificates Air Pollution Prevention Certificates Sewage Pollution Prevention
and drill requirements for all vessels under its management and develops an annual training plan for each vessel. The Certificates Oil Pollution Prevention Certificates Anti-Fouling System Certificates and Domestic Navigation Vessel Safety and
Company regularly conducts environmental protection training and drills for crew members covering topics such as ship waste Environmental Protection Certificates among other relevant qualifications.management and domestic sewage treatment standardizing internal personnel’s pollution handling operations. Additionally
shore-based employees are periodically organized to participate in environmental volunteer activities and receive training on
environmental laws and regulations effectively enhancing employees’ environmental awareness.
51 52Environmental Social and Governance Report 2025 Green and Low-Carbon Safeguarding the Ecosystem
Strategy Marine Oil Spillage Emergency Drill Case
During the Reporting Period in order to effectively fulfill the requirements of the SOLAS/SOPEP international conventions and
Type of Explanation Impact
Impact enhance vessels’ emergency response and coordinated handling capabilities for marine pollution incidents the Company conducted a
Risk/ Description of Risk/Opportunity of Financial on Value Response Measures
Duration
Opportunity Impact Chain comprehensive emergency drill simulating an oil spillage accident during bunkering operations. The drill simulated the discovery of oil
pollution on the water surface during refueling. In accordance with established procedures all crew members activated the emergency
Pollutants such as exhaust gases Monitor domestic and international
wastewater and domestic waste shipping-related environmental policies and
response plan promptly carrying out key actions such as isolating the source of leakage issuing alarms assembling response teams
generated during vessel operations reasonably allocate and adjust budgets to containing and recovering spilled oil followed by equipment inspection and post-drill review. The entire process featured rapid response
may impact the environment. If Short- to ensure timely updates and upgrades of standardized operations and orderly coordination successfully verifying the effectiveness of the vessel’s anti-pollution emergency plan
Cost
Policy Risks environmental regulations become medium- Operations environmental protection facilities;
increase and strengthening crew members’ environmental awareness and practical response capabilities.stricter in the future the Company term Strictly comply with environmental protection
may need to invest more in and pollution prevention standards to ensure
environmental protection potentially the compliant discharge and proper disposal
increasing operational costs. of pollutants and waste.Conduct in-depth research on environmental
If the Company fails to discharge regulatory requirements; strengthen pollutant
pollutants in compliance with emission management to ensure compliant
relevant laws and regulations it Cost Short- handling; Metrics and Targets
Legal Risks Operations
may face fines lawsuits or other increase term Implement operational standards and
penalties from authorities in training for relevant personnel to prevent Marine transportation is the primary operational segment in which the Company’s production and business activities involve
operational regions. environmental pollution caused by improper
operations. environmental pollution. During vessel operations pollutants may be generated including exhaust emissions (mainly carbon
dioxide nitrogen oxides and sulfur oxides) oil pollution/oily wastewater domestic sewage and ship-generated waste. During
the Reporting Period the Company adopted appropriate treatment measures for all of the above major pollutants to ensure
Impact Risk and Opportunity Management that all emission metrics complied with relevant environmental protection standards. In 2025 the Company’s investment in
environmental protection amounted to RMB 4137.41 (in ten thousand yuan).Environmental Risk Identification and Monitoring
Major Pollutant Emissions
The Company has established the Risk Identification Assessment and Control Procedures to standardize the processes for
hazard identification risk identification assessment and control. The Marine Department is responsible for regularly reviewing Key Metrics Unit 2024 2025
the adequacy appropriateness and effectiveness of risk factor identification and control measures and updating the Risk Nitrogen Oxides (NOX) Emissions ton 12390.90 17952.48
Identification and Assessment Records based on the review results. In addition the Company has developed a Risk Source
Nitrogen Oxides (NOX) Emission Intensity t/RMB 1 million (revenue) 3.39 4.04
Classification and Control List to implement tiered management and control of risk sources that may cause environmental
pollution. Sulfur Oxides (SOX) Emissions ton 1410.83 2034.95
Sulfur Oxides (SOX) Emission Intensity t/RMB 1 million (revenue) 0.39 0.46
Environmental Emergency Management
Highton Development consistently upholds a strong sense of environmental responsibility and has established a systematic
environmental emergency management framework. The Company has formulated and implemented a series of emergency
response procedures including the Emergency Incident Handling Procedure Emergency Preparedness and Guidelines for
Emergency Response to Accidental Oil Spillage comprehensively covering the prevention control and response processes Pollutant Discharge Management
for environmental and safety emergencies such as oil spillage. Through systematic identification and assessment of potential
vessel emergencies the Company clearly defines the responsibilities of personnel at all levels and the deployment of emergency The Company has established stringent emissions management systems and procedures including the Procedures for Preventing
resources ensuring rapid response and effective incident control and minimizing the scope of incidents and their environmental Environmental Pollution which clearly define the specific requirements and standards applicable to vessels under the Company’s
impacts. management in respect of environmental protection and pollution prevention thereby ensuring the compliant discharge and
proper treatment of pollutants.At the same time to ensure effective response to sudden environmental pollution and damage incidents the Company has
prepared guiding documents such as the Onboard Emergency Response Guide and Training Manual . In accordance with the Waste Gas Management
annual ship-shore emergency training and drill plan the Company regularly organizes a range of emergency drills including
abandon ship fire-fighting oil spillage collision and grounding scenarios. These efforts continuously enhance the emergency The Company has prepared the Guidelines for the Prevention of Air Pollution in accordance with international conventions
coordination and response capabilities of both ship and shore personnel effectively safeguarding navigational safety and marine and relevant laws and regulations specifying the basic requirements for preventing air pollution from vessels as well as the
environmental protection. exhaust gas management system and operational procedures. The Engine Department is responsible for overseeing the fleet’s
53 54Environmental Social and Governance Report 2025 Green and Low-Carbon Safeguarding the Ecosystem
full compliance with these requirements. The Master ensures the completeness and validity of the International Air Pollution
Prevention Certificate and supervises the Chief Engineer and Chief Officer in implementing the relevant regulations. The Chief Management of Wastes
Engineer and Chief Officer are responsible for the practical execution of air pollution prevention measures.In accordance with the International Convention for the Prevention of Pollution from Ships (MARPOL) and relevant regulations
Aiming to prevent air pollution and reduce emissions of sulfur oxides nitrogen oxides and other exhaust gases the Company of the flag state the Company has developed and implemented systems such as the Garbage Management Plan to standardize
strictly manages fuel quality anti-pollution equipment and crew operations. At the same time it actively explores advanced all aspects of waste classification storage and disposal. A comprehensive management system has been established with the
exhaust gas treatment methods and promotes the installation and retrofitting of desulfurization systems to further reduce Maritime Department responsible for supervising compliance with waste management requirements. The Master Chief Officer
emissions. Chief Engineer and other personnel collaboratively manage onboard waste to prevent pollution incidents and strive to minimize
waste generation.Fuel Oil Management
To achieve standardized management of vessel waste and protect the marine environment the Company has established the
The Company strictly implements regional limits on the sulfur content of marine fuels in different parts of the world and has established following waste management objectives: By systematically standardizing the classification storage and disposal processes for
standardized fuel changeover procedures to ensure that vessels use low-sulfur fuel upon entering emission control areas. Relevant log
records are maintained to meet the requirements of inspections by port state control (PSC) and other supervisory authorities. In addition domestic sewage and various types of waste the Company ensures that all waste is properly handled resolutely preventing
equipment such as desulfurizing tower is used to further reduce SOX emissions. pollution of the marine environment. To accomplish these objectives the Company has developed a comprehensive waste
management system and procedures.Equipment Management
Shipboard Waste Disposal Measures
The Company conducts inspections and maintenance of shipboard air pollution prevention equipment. Such equipment has been surveyed
in accordance with the requirements of the applicable international conventions or domestic ship inspection rules and has obtained the Compliant Disposal
relevant air pollution prevention certificates. The use of ozone-depleting substances or equipment containing such substances is restricted; The Company has equipped its vessels with appropriate waste disposal facilities such as incinerators food waste disposers and waste
any such equipment once removed is sent to appropriate recycling facilities. shredders to handle different types of waste. Waste is treated through incineration crushing grinding or compact storage with detailed
records maintained including date and time information. During the storage period vessels are regularly cleaned and disinfected fire-
fighting equipment is provided and management and inspections are strengthened. After berthing ship-generated waste is fully sealed
Operational Management of Personnel transferred and received by qualified port reception facilities for proper disposal.The Company standardizes the operating practices of all engine room personnel including requirements for effective separation and Daily Management
purification of fuel oil as well as cleaning of the main engine and exhaust gas boiler air intake ducts in order to control the level of exhaust For onboard personnel the Company regularly conducts training on the shipboard Garbage Management Plan and the use of onboard
emissions from machinery. pollution prevention equipment. By implementing the procedures of the garbage management plan and properly utilizing onboard waste
treatment facilities the environmental impact of ship-generated waste is minimized. In addition the Company conducts multiple shipwide
self-inspections on pollution prevention covering areas such as sulfur oxide emissions use of electrical equipment fuel and domestic
waste general garbage and hazardous materials management. These inspections ensure that no pollution incidents or non-compliant waste
Ship Sewage Management handling occur.The Company has formulated control procedures such as the Procedures for Preventing Oil Pollution to standardize the handling
and treatment of major types of shipboard wastewater including oily wastewater and domestic sewage thereby preventing oil Hazardous Materials Management
harmful liquids and other substances from polluting the marine environment.The Company has established control procedures such as Maintenance and Monitoring of Asbestos-Containing Materials and
Oily Wastewater Other Hazardous Substances on Board which include a detailed Inventory of Hazardous Materials (IHM) for its vessels. Drawing
on extensive industry experience the Company identifies all hazardous and potentially hazardous materials on board including
The Company exercises strict control over the discharge of oily wastewater by implementing shore-based monitoring and sealing
asbestos. Through measures such as awareness prohibition control and training the Company ensures the proper and
management measures. The entire process—from generation collection storage to treatment of oily wastewater—is subject to standardized
monitoring and control to ensure that all relevant parameters meet the discharge standards applicable at the place of operation. compliant handling of various shipboard hazardous materials effectively minimizing their adverse impacts on the environment
Alternatively oily wastewater is collected using onboard collection systems and discharged to reception facilities or handed over to qualified health and safety. During the Reporting Period all hazardous waste generated onboard was entrusted to third parties for
third-party service providers for treatment when vessels are berthed. transfer and disposal.Waste Discharge Overview
Domestic Sewage
Key Metrics Unit 2025
The Company conducts regular inspections and maintenance of shipboard domestic sewage treatment systems on each voyage. Domestic
Hazardous Waste Generated m3 423.44
sewage is treated by these systems and provided that relevant discharge standards are met is discharged during navigation in waters
permitted under applicable laws and regulations. Alternatively it is collected using onboard collection systems and discharged to reception Non-Hazardous Waste Generated m3 2031.61
facilities or handed over to qualified third-party service providers for treatment when vessels are berthed.Total Waste Discharged into Sea m3 1392.46
Ballast Water Total Waste Recycled Onshore m3 1044.16
The Company has established Ballast Water Management procedures. In accordance with the discharge requirements set out in the Note:
International Convention for the Control and Management of Ships’ Ballast Water and Sediments (BWM Convention) ballast water treatment 1. Non-hazardous waste primarily includes food waste domestic waste (excluding oily rags) edible oil operational waste animal carcasses fishing gear and cargo residues
systems have been installed on vessels operating on international routes. The Company strictly follows ballast water treatment operating that are harmless to the marine environment all generated by the Company’s operating vessels.procedures to prevent environmental pollution caused by improper ballast water management. 2. Hazardous waste primarily includes plastics domestic waste (including oily rags) incinerator ash electronic waste expired medicines and cargo residues that are harmful to
the marine environment all generated by the Company’s operating vessels.
55 56Environmental Social and Governance Report 2025 Green and Low-Carbon Safeguarding the Ecosystem
Optimizing Resource Utilization Biodiversity Conservation
Water Resource Management Amid growing global awareness of ecological protection the Company recognizes the strategic significance of biodiversity for
the marine and broader global ecosystems. In response it actively aligns with international domestic and industry initiatives
To actively implement the concept of sustainable development and reduce reliance on and consumption of external freshwater
and conventions on biodiversity conservation. The Company has established a sustainable development management framework
resources all vessels operated by the Company are equipped with seawater desalination systems which convert seawater into
centered on the Board of Directors and the ESG Working Group which oversees environmental management including
potable water meeting drinking standards effectively supplementing the onboard domestic water supply.biodiversity protection. The Engine Department and Maritime Department jointly implement biodiversity protection measures.Additionally the company has established compliant procedures such as the Ballast Water Management Procedures Guidelines
While focusing on investments in hardware facilities the Company also places great emphasis on cultivating a water-saving
for the Prevention of Environmental Pollution and Guidelines for the Prevention of Oil Pollution . The Company actively engages
culture among all employees. Staff are guided to develop good water conservation habits and are encouraged to actively
in biodiversity protection practices and implements relevant measures.participate in optimizing the use of water resources on board ensuring that every employee becomes a proactive practitioner of
water conservation.The Company strategically examines the close relationship between biodiversity and its business operations actively identifying
Water Consumption environmental factors and risks in shipping activities that may adversely affect marine biodiversity. Identified risks are assessed
Metrics Unit 2024 2025 and targeted mitigation measures are developed including—but not limited to—ballast water management enhanced oil
spill prevention and optimization of vessel coatings. These efforts aim to minimize the negative impact or disruption of daily
Total Water Consumption ton 31336.49 34301.11 operations on the marine ecosystem effectively safeguarding the marine environment and demonstrating the Company’s
1 commitment to environmental stewardship.Office Water Consumption ton 1155.24 925.71
Strict Ballast Water Management
Water Consumption Intensity t/RMB 1 million (revenue) 8.56 7.72
The Company equips its vessels with comprehensive ballast water management systems and ensures their functional reliability through both
regular and ad hoc inspections and maintenance. To minimize the risk of biological invasions at the source vessels routinely measure and
inspect ballast water to ensure water quality meets environmental standards. Operations such as ballast water intake discharge transfer
Materials Management and exchange are strictly regulated to ensure compliant handling during navigation preventing the abnormal migration of marine organisms. In accordance with the requirements of the International Maritime Organization (IMO) Ballast Water Management Convention the Company
The Company has established systems such as the Ship Material and Spare Parts Management System to comprehensively strictly follows ballast water treatment operating procedures and has installed ballast water treatment systems on vessels operating on
international routes to reduce the environmental impact of ballast water on the marine ecosystem. By the end of 2025 53 vessels operating
standardize the management processes for the application storage use and recycling of materials. This ensures that vessels in overseas waters and 3 vessels operating on both domestic and international routes had been equipped with ballast water treatment
maintain an adequate quantity and quality of materials spare parts and documentation providing a solid foundation for the systems.normal operation of machinery electrical power and navigation/communication equipment. Such management safeguards
the continuity and stability of vessel operations meeting operational and safety requirements through efficient resource Strengthening Oil Spillage Emergency Response Capability
management. The Company has established guidelines and procedures such as the Guidelines for Emergency Response to Accidental Oil Spillage
continuously improving its oil spillage emergency response mechanisms and processes. Oil spillage recovery and treatment equipment is
Material Request Routine Maintenance Material Quality Management of appropriately allocated and emergency drills are actively conducted to ensure rapid response in the event of an oil spillage effectively
and Warehousing of Materials Feedback Obsolete Materials controlling and minimizing the impact of oil pollution on the marine environment.Vessels submit material Appropriate labels indicating Any material quality Spare parts and
requisition forms in material information are created for issues identified during materials retired Optimizing Ship Coatings
accordance with the various materials and spare parts use are reported and during vessel
application procedures which are then properly stored in based on the actual operations are In accordance with relevant IMO regulations the Company strictly prohibits the application reapplication installation or use of harmful
which after review proceed the designated storage areas. situation the supplier managed through antifouling systems on board and has obtained the necessary antifouling system certificates to prevent harmful substances from impacting
to procurement through is contacted for after- standardized storage the marine environment. In addition the Company promotes the use of ship hull paints that prevent marine biofouling and conducts
tendering. Appropriate labels indicating sales service or internal and recycling underwater inspections around the hull using cameras with regular hull cleaning performed to prevent the abnormal migration of marine
material information are created for inspections are conducted procedures organisms.Upon delivery of supplies to various materials and spare parts to prevent similar issues enhancing asset
the vessel relevant personnel which are then properly stored in from recurring. utilization and
check and verify the items and the designated storage areas. Optimization of Routespreventing asset loss.promptly record their receipt
and storage. The Company actively adopts routes recommended by maritime authorities and optimizes route management to protect the marine ecosystem.By avoiding fishing zones and areas of biological habitat and reproduction and taking into account the seasonal migration patterns of marine
organisms the Company incorporates biodiversity risk assessments into route planning effectively reducing the impact of shipping activities on
the ecosystem.
1 The scope of office water consumption statistics covers office premises where the company independently bears the water expenses and where
separate metering conditions are available. For certain leased office locations due to the specific property management arrangements separate
water consumption data is currently unavailable.
57 58Environmental Social and Governance Report 2025 Digital Intelligence-Driven Collaborative Value Creation
Digital Intelligence-Driven
Collaborative Value Creation
Highton Development leverages digital intelligence capabilities to continuously optimize customer service and supply chain
management. We focus on maintaining a safe and reliable operational environment and are committed to growing together with
our partners building a sustainable business ecosystem.Comprehensive Digital Intelligence Development
Data Security and Privacy Protection
High-Quality Customer Service
Responsible Supply Chain
59 60Environmental Social and Governance Report 2025 Digital Intelligence-Driven Collaborative Value Creation
Comprehensive Digital Intelligence Development
The global shipping industry is entering a critical phase of informatization and digital transformation with information and digital technologies becoming key drivers for high-quality development. Based on its strategic positioning and development needs the Company actively explores
new development paths centered on “digitalization + shipping” continuously improving internal management systems and information governance frameworks. The Company is committed to achieving full digitalization and intelligence in both business operations and internal control
management.Governance
The Company deeply integrates digital development with its corporate strategy strictly following the overarching principle of “unified planning unified standards distributed implementation and gradual refinement” in the construction of information systems. Centered on the IT strategic
objective of leveraging technology to empower business the Company focuses on supporting business growth enhancing management efficiency and deepening data analytics as key priorities. The Digital and Intelligent Management Center as the leading department for digital
development is responsible for overall planning project initiation standards formulation resource coordination and unified management. All business departments actively participate in system requirements analysis and process optimization. By promoting policy development and establishing
a data analytics and performance indicator framework the Company clarifies and strengthens each department’s responsibilities in digital transformation.Strategy
Explanation Impact
Type of Risk/ Impact
Description of Risk/Opportunity of Financial on Value Response Measures
Opportunity Duration
Impact Chain
Digital transformation requires substantial investment in intelligent vessels and system development and may face Follow the principle of “unified planning unified standards phased implementation and gradual refinement”. The Digital
Technological Short- to
technical integration challenges such as accelerated external technology iteration cycles compatibility between new and Cost increase Operations and Intelligent Management Center leads unified management develops the Digital Transformation Planning Program and
Risks medium-term
legacy systems and inconsistent data standards. sets clear phased objectives to minimize technology iteration cycles and mitigate technical risks.By integrating operational data from domestic-shipping foreign-shipping finance and external markets and building Deploy beacon systems to integrate ship-to-shore data continuously develop and upgrade intelligent systems such as
Operational Reduction in
analytical models the Company can optimize route planning fuel procurement and other operations thereby improving Operations Operations spare parts management and introduce technologies including radio frequency identification device (RFID) robotic process
Opportunities cost
operational efficiency. automation (RPA) and large language models to enhance management efficiency.By building an enterprise data platform operational data can be unified and standardized to create reusable data assets. Deepen the integration of existing systems with cross-departmental process collaboration at the core. Establish unified
Technical Reduction in
On this basis a data analytics platform and intelligent application scenarios can be established enabling value conversion Operations Operations data standards and process protocols and promote standardized application of information to support intelligent scenario
Opportunities cost
from data accumulation to operational insights. deployment.Impact Risk and Opportunity Management
Since 2018 the Company has continuously invested in information system development including the application upgrading and iterative enhancement of systems for financial management onboard management RFID on spare part management operational system upgrades system security RPA
and digital dashboards.The Company has implemented key initiatives in intelligence and security to ensure data protection and refined management throughout the digital transformation process providing a solid foundation for sustainable development. Building on the onboard management system a system for RFID on
spare part management has been introduced to streamline onboard spare parts handling improve operational efficiency and enable real-time monitoring and precise management of vessel spare parts inventory by both shipboard and shore-based teams effectively reducing inventory levels and
optimizing capital utilization. The application of RPA automates numerous tedious and repetitive tasks transforming work processes and allowing personnel to focus on critical tasks thereby enhancing overall work efficiency.
61 62Environmental Social and Governance Report 2025 Digital Intelligence-Driven Collaborative Value Creation
Metrics and Targets
Through digital enablement the Company provides strong support for its business strategy driving continuous optimization and innovation of existing operations while exploring new business areas and market opportunities. In 2025 guided by the overall objectives of digital development
and with data standardization and sharing at its core the Company advanced the integration of business and finance connecting the digital chain of vessels and crew through closed-loop business processes and traceability thereby laying a solid foundation for refined operations.
2025 Digital Construction Goals (Partial)
Planned Construction System Planned Objectives Completion Status in 2025
Support scientific management and dynamic allocation of the crew pool;
Crew Management System Establish a full-process business management loop for crew providing systematic management from recruitment to payroll; Achieved
Enable automated management of crew interviews certificate expiration warnings and other tasks.Integrate with the business data lake to reduce partnership risks;
Customer Relations Management System Improve customer information data establish customer service profiles understand customer needs and enhance customer satisfaction; Achieved
Share customer resources across departments to provide data support for coordinated business operations.Optimize downstream multiple-quote management bid evaluation and supplier rating functions on the bidding platform;
Bidding System Upgrade Achieved
Enable mobile approval of bidding operations and SMS notifications.Systematize the procurement and usage of office and administrative supplies;
Administrative Inventory System Achieved
Provide comparative data analysis across different stages.Insurance System Systematize the Company’s insurance operations and establish end-to-end management from insurance contracts to premium payments. Achieved
Deploy RFID systems and complete system deployment on returning vessels;
Spare Parts Supermarket System Deployment Deployed on 39 vessels
Enable automated onboard management within the vessel management system including spare parts inventory inbound and outbound operations.Customer System Rating Deepen customer rating classification in operations through systematic rating categories. Achieved
Optimize the data dashboard add business dashboards for the Foreign Trade and Shipping Center and the Human Resources and Administration Center and transit from two-
Enhanced Dashboard System Achieved
dimensional tables to visually rich trend-oriented dashboards.Upgrade existing RPA tools to support automated external data collection;
RPA Upgrade Achieved
Introduce additional automated workflows to enable partial automation of manual tasks.As of the end of the Reporting Period the Company had completed 36 digital development projects with 4 digital projects still under construction.
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Key PerformanceEnvironmental Social and Governance Report 2025 Digital Intelligence-Driven Collaborative Value Creation
Data Security and Privacy Strategy
Protection
Type of Risk/ Explanation Description of Financial Reporting Impact on Response Measures
The Company places great importance on data security and privacy protection. Safeguarding the security of shipboard networks Opportunity Impact Period Value Chain
and equipment is critical to the normal and efficient operation of shipping activities helps ensure the smooth execution of
voyage plans and prevents the leakage of sensitive information. Strengthening security protection capabilities is central to the Strictly enforce the access approval procedures
Company’s ability to effectively respond to cyber threats and to build a robust security emergency response framework. outlined in the Information System Management
Policy requiring dual approval from both the
business department head and the Digital
and Intelligent Management Centerfor access
The Company’s allocation.Governance information systems involve sensitive Disable data export functions for all critical
data such as vessel information systems; implement watermark
tracking for certain systems to enable
The Company strictly complies with laws and regulations such as the Data Security Law of the People’s Republic of China and operations customer Short- to
Technological contracts and financial Operations traceability of screenshots.the Personal Information Protection Law of the People’s Republic of China and has formulated internal policies including the Cost increase medium-Risks information. Without Downstream
term Encrypt and securely process sensitive data and
Highton Development General Principles for Information Management and the Highton Development Information System Security strict access control or in financial system code to prevent decryption or
the event of an external
Management Policy thereby comprehensively strengthening the secure management and control of data assets. In terms of interception during operation.attack this could lead
division of responsibilities the Company manages information security in a tiered structure. The Board of Directors oversees to data leakage or Use SSL/TLS encryption for data access and
major data security management matters while the General Manager is responsible for reviewing evaluating and deciding on tampering. transmission.such matters to ensure that information system development Control IDC access permissions through a
and security initiatives effectively support the Company’s bastion host mechanism and enhance database
strategy. The Digital and Intelligent Management Center is management with role-based access control to
strengthen oversight.responsible for the construction operation maintenance and
security protection of information systems ensuring stable
equipment operation preventing data leakage and loss and Following the priorities outlined in the Digital
continuously advancing system and network optimization and Transformation Plan core business systems
such as the Foreign-Shipping Management
upgrades. System application departments are responsible Some systems are System and Financial System are migrated from
for closely aligning system planning with business objectives deployed in vendor data vendor data centers to controllable public cloud
centers posing risks
ensuring that systems operate securely reliably and efficiently environments with additional security measures related to data migration Short- to including bastion hosts and firewalls.in practice and that various issues are responded to and Operational Operationsor service dependency Cost increase medium-
Risks Downstream
resolved in a timely manner. During the Reporting Period the and potential loss of term Incremental daily backups of cloud-based
data control due to systems are stored locally at Highton (e.g. on
Company recorded no violations related to information security third-party management external hard drives) and full daily backups are
or privacy protection and no incidents involving the leakage of vulnerabilities. validated for usability.Network and Information Security Training
customer privacy. Periodic information security audits are
conducted to ensure compliance.During the Reporting Period the Company conducted information security awareness training for the Digital and Intelligent
Management Center enhancing employees’ awareness of information security their ability to respond to information risks and
By integrating domestic-
strengthening the overall security defense. In addition Company personnel attended professional information security training Establish a company-level data warehouse that
shipping foreign-
sessions organized by external service providers. integrates domestic-shipping data (e.g. voyage shipping financial and
contracts port charges) foreign-shipping data
other data to build
(e.g. charter settlements fuel procurement)
analytical models the
Technical Reduction in Long- and financial data (e.g. cost accounting
Company can optimize Operations
Opportunities cost term cash flow). Eliminate information silos and
During the Reporting Period the Company conducted 2 information security training sessions with 35 route planning fuel incorporate external third-party data to form a
procurement and other
comprehensive corporate data asset package
operations thereby
enabling operational optimization in areas such
participants in total. The total training duration was 70 hours with an average of 2 hours per participant. improving operational as weather forecasting and route planning.efficiency.
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Key PerformanceEnvironmental Social and Governance Report 2025 Digital Intelligence-Driven Collaborative Value Creation
Information Security Review
Impact Risk and Opportunity Management During the Reporting Period the Company conducted 1 external information security compliance review (IT audit) identifying
In terms of cybersecurity and management the Company has developed a series of measures based on the implementation standards 13 areas for improvement including enhancements to internal policies and procedures. The Company has completed the
outlined in the Guidelines on Maritime Cyber Risk Assessment and Management System and tailored to its own circumstances. These relevant corrective actions and optimizations ensuring the compliance and effectiveness of information security management.measures are designed to protect ship and shore computer systems from cybersecurity threats ensure their safe operation and
specify equipment recovery procedures in the event of an incident.Risk Management Process
Metrics and Targets
Potential threats and system vulnerabilit ies
Risks are evaluated and prioritized based on are proactively identified through log audits
the likelihood of occurrence and the potential Risk Identification vulnerability scanning and security baseline Metrics Goals 2025
impact on business continuity and data security verification.Major Information Security Violations 0 case
determining the order in which they should be 0 case
addressed. Risk Assessment
Leveraging security platforms such as bastion
Risk Monitoring hosts application firewalls and local firewalls the
A combination of measures—including data Company continuously protects network traffic
encryption access control intrusion prevention and endpoint devices monitors user activities Information Security Management Strategies
endpoint security management and disaster manages passwords and access permissions and
recovery backups—is employed to effectively Risk Response implements tiered management to prevent data
control and mitigate identified risks. leakage and system compromise. Information Security Management for Partners
The Company requires suppliers to comply with the relevant provisions of the Information System Management Policy . External
developers must adhere to the Company’s requirements for data encryption access control and other security measures. Before
Information Security Emergency Management commencing work on-site suppliers are required to sign the Information Security Responsibility Agreement committing to protect
Company data and prohibiting the disclosure of sensitive information including customer information and business data. Upon
The Company has developed detailed information security emergency response plans specifying the response procedures project completion supplier project access rights are revoked and all project-related data is properly cleared.division of responsibilities and concrete operational steps. In the event of a cybersecurity incident immediate control measures
must be taken and the incident must be accurately reported and properly handled. Units that conceal delay or inadequately
respond to incidents are subject to notification and accountability. Employee Change Security Management
In accordance with the relevant provisions of the Detailed Rules for Information System Management employees who undergo
Additionally the Company regularly conducts information security emergency drills and training to enhance employees’ job transfers must obtain corresponding system permissions via the System Permission Application Form approved by their
emergency response capabilities practical skills and awareness of information security thereby strengthening overall prevention department head. When an employee submits a Resignation Application Form and receives leadership approval the system
and protection measures. automatically revokes all of the employee’s access permissions. In daily management strict controls are applied to data export
and other processes that may pose a risk of data leakage.Cybersecurity Emergency Drill Case
During the Reporting Period in response to the increasingly complex Data and Network Security
cyber environment and to enhance the Company’s ability to handle Equipment and System Security
unexpected cybersecurity incidents Highton Development organized a
cybersecurity and information security emergency drill. The drill aimed Full Life Cycle Control of Equipment
to test the effectiveness of the Company’s cybersecurity emergency The Digital and Intelligent Management Center sets procurement standards and coordinates purchases; installation and maintenance
response plan strengthen coordination among systems improve the personnel supervise the process throughout; procedures and data are cleared prior to decommissioning.emergency handling capabilities of cybersecurity personnel and ensure
that in the event of a real incident the Company can respond quickly System Access and Protection
and effectively safeguarding business continuity and data security. Hardware is managed with tiered controls and clearly assigned responsibilities; systems are authorized based on role-based access users set
Network and Information Security Emergency Drills complex passwords and update them regularly; critical system codes are encrypted; branch offices access systems via VPN with hardware/
software firewalls in place and separate subnet segmentation implemented.
67 68Environmental Social and Governance Report 2025 Digital Intelligence-Driven Collaborative Value Creation
Data Security High-Quality Customer Service
Data Protection and Backup
Confidential information is encrypted; system data is regularly backed up including server system image backups.Governance
Data Transfer Standards
Data exchanged between systems is transmitted via standard APIs to prevent tampering; shared files are organized by department with
controlled access and cross-department access requires approval. The Company adheres to the service philosophy of “Creating value for customers and realizing dreams for strivers” focusing
on domestic coastal and international ocean-going dry bulk cargo transportation. To enhance the standardization of customer
management the Company has established a series of policies including the Domestic Trade and Shipping Center Management
Network Security Protection
System and Foreign-Shipping Business Processes which clearly define the specific content and procedures for customer
Daily Management Rules management. The Board of Directors is responsible for approving key strategies and policies related to customer service and
Servers are accessed via “intranet + VPN”; shipboard computers are prohibited from installing or uninstalling unauthorized software. oversees decision-making on major matters such as service quality management. The Domestic Trade and Shipping Center
Foreign Trade and Shipping Center and Marketing Center are respectively responsible for formulating and implementing the
Security Operating Measures
Company’s medium- and long-term maritime market strategies for domestic-shipping and foreign-shipping business ensuring
Network connections are regularly inspected; network devices are bound to specific zones and managed by segment; the mail server filters
suspicious emails and critical emails require multi-channel verification; USB and other external devices are locked on shipboard computers continuity and stability of business operations. The Ship Management Center Finance Department Foreign Trade and Shipping
and wireless device access to office computers is disabled; antivirus software and virus definitions are updated regularly; any shipboard Center and Domestic Trade and Shipping Center coordinate across departments to meet differentiated customer needs and drive
network security issues are reported immediately. the Company’s sustainable high-quality development.Daily Strengthening Measures
Office Network Optimization Strategy
Additional firewalls installed and Layer-3 switches upgraded; office networks are segmented by functional departments and access devices
are managed by zone.Type of Explanation
Server Protection Risk/ Description of Financial
Reporting Impact on Response Measures
Opportunity Impact Period Value Chain
Application firewalls and bastion hosts are deployed to strengthen access control and enable operation traceability.If the Company fails
Shipboard Terminal Management to ensure timely In line with the characteristics of the dry bulk
transportation or shipping industry establish corresponding
Responsibilities for shipboard computer management are clearly defined; regular cybersecurity training is conducted monthly risk experiences service Cost management systems and procedures build a more
assessments are performed and emergency response plans are developed. Operational issues such as cargo increase Operations comprehensive shipping network and upgrade
Short-term
Risks damage or loss it may Income Downstream vessel management and fleet deployment capacity
need to compensate decrease to continuously improve operational efficiency.customers and could
Customer Privacy Protection Enhance personnel quality through customer even face customer service business operations and etiquette training.The Company attaches great importance to the protection of customer privacy. Through a dual mechanism combining attrition.institutional policies and system controls the Company implements strict confidentiality management of customer information and If the Company fails to
continuously safeguards the security of customer data. respond to and address Business departments monitor the service process
customer feedback in and respond promptly to customer feedback to
a timely manner and ensure service meets customer needs. Customers
At the institutional level the Company has established clear management regulations covering internal employees vendor personnel and Reputation does not understand or Income Operations can provide feedback and suggestions through
Long-term
in-house development teams. All personnel are required to comply with unified policies including signing confidentiality agreements and Risks meet customer needs decrease Downstream multiple channels and these inputs serve as the
following strict access approval procedures to ensure standardized management throughout the entire process from access to use of customer satisfaction core basis for service optimization and upgrades
customer data. may decline hindering continuously driving service improvement and
the establishment of earning recognition and trust from key clients.long-term partnerships.At the system level the Company has embedded management closed loops into system design and application enabling full-process
By providing more
control over permission application approval modification and revocation. Through functions such as data compliance verification in efficient and high-quality
testing environments monitoring of on-the-job access rights and automatic revocation of permissions upon employee departure the Leverage intelligent and digital transformation services the Company
initiatives to continuously optimize customer service
Company ensures that customer information remains secure and controllable across all environments. Operational can attract more Income Operations
Long-term management enhance operational efficiency and
opportunities customers generate increase Downstream
drive ongoing business innovation delivering high-
additional business
The above mechanisms apply to all internal personnel and external partners. Any violations will be dealt with seriously in quality services that align with customer needs.opportunities and help
accordance with their severity and any suspected criminal acts will be referred to judicial authorities in accordance with the law. expand market share.
69 70Environmental Social and Governance Report 2025 Digital Intelligence-Driven Collaborative Value Creation
Impact Risk and Opportunity Management Customer Service Management
The Company continuously optimizes shipping business processes covering key areas such as marketing contract drafting route Handling of Customer Complaints
operations and cargo loading/unloading handovers enabling systematic tracking and control of the entire transportation process. To The Company has established a comprehensive customer complaint handling mechanism through which customers may submit
strengthen business risk prevention the Company has established a customer credit evaluation system comprehensively assessing complaints via WeChat email telephone written correspondence and other channels. In the event of an emergency involving
clients across multiple dimensions including business scale performance capability cooperation level emergency response and a vessel the relevant departments are required to respond within two hours promptly report and communicate information
problem-solving ability and implements tiered customer management based on these evaluations. By promoting standardized and within one day after the incident occurs organize and coordinate internal and cross-departmental resources to develop an
operations and refined risk management the Company has effectively improved vessel turnover efficiency strengthened market emergency response plan.competitiveness and achieved steady growth in economic performance providing a solid foundation for the long-term stable Customer Complaint Handling Process
development of its shipping business.Staff members record the customer’s basic
information details of the complaint and the
The responsible department assigns designated Complaint Acceptance underlying reasons in a comprehensive manner
personnel to contact the customer collect relevant and then forward the complaint information to the
information review internal company records and Investigation and responsible department.Metrics and Targets objectively analyze the root causes of the issue. Verification
Development of a Based on the investigation results a solution is
Solution formulated specifying the measures to be taken
The Company’s business departments monitor service processes and gather customer feedback to ensure that services meet Upon approval the solution is implemented with responsible persons timelines and expected
client requirements. Customer satisfaction surveys are conducted regularly proactively identifying and addressing issues with the designated personnel assigned to track progress Implementation of the outcomes and submitted for approval by senior
aim of continuously fulfilling customer needs. and make timely adjustments where necessary. Solution
management.Feedback and Upon completion the results are communicated
The Company sets customer satisfaction as a key performance objective ensuring prompt and effective responses to customer Confirmation to the customer and customer satisfaction is
Issues are regularly summarized and analyzed
requests to meet their differentiated needs. Customer complaints are used as an important metric for evaluating customer service confirmed. If the customer is not satisfied the and improvement and preventive measures are Conclusion
performance. issue is reprocessed.developed accordingly.During the Reporting Period the Company issued a total of 58 customer satisfaction
During the Reporting Period the customer complaint resolution rate reached 100% and the timely
surveys achieving a customer satisfaction rate of 97.85%.handling rate of customer complaints was 100%.Enhancement of Customer Satisfaction
We continuously optimize customer service management driving improvements in operational efficiency and service quality. The
Company’s business departments monitor service processes and conduct targeted follow-up and analysis of customer feedback to
ensure customer issues are resolved and their needs are consistently met.The Company strengthens the professional capabilities of
its shore-based management teams to build a solid talent To deepen strategic partnerships
foundation; advances standardization to improve full life- with key clients we have established
cycle management of vessel supplies and spare parts; and a key account service mechanism.reinforces system implementation focusing on proactive Through regular customer and market Measures to Enhance
risk prevention hazard identification and mitigation and the visits the Company strengthens Customer Satisfaction
development of emergency response mechanisms. Through communication with clients gains
these efforts the Company establishes a closed-loop safety deeper insights into their needs
management system comprehensively enhancing service enhances the depth of cooperation
capabilities and the level of safe and reliable operations. increases client loyalty and expands
its base of key accounts.
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Key Performance
Key PerformanceEnvironmental Social and Governance Report 2025 Digital Intelligence-Driven Collaborative Value Creation
Responsible Supply Chain and voyage repair services while the Domestic-Shipping Bidding Platform focuses on serving downstream shipowner clients. To date it has completed the qualification review and account setup for multiple shipowners. All suppliers for the Company’s
procurement projects participate in open bidding through the respective platforms.Supplier Management
Equal Treatment of Small and Medium-Sized Enterprises
The Company has formulated the Supplier Management Measures with the Procurement Department taking the lead in managing
suppliers. These measures standardize the entire supplier management process foster a fair just and transparent procurement The Company consistently adheres to the principle of fairness in its business dealings treating all small and medium-sized
environment and ensure the efficient and stable operation of the supply chain. enterprise (SME) partners equally and striving to build long-term stable cooperative relationships. During the Reporting Period the
Company did not have any instances of overdue payments to SMEs.Full Lifecycle Management of Suppliers
Suppliers are required to submit a Supplier The Company classifies suppliers into four grades—A B C and D—
Information Form and undergo a review of based on their evaluation scores. Suppliers scoring below the passing
qualification documents. Depending on the threshold will undergo a re-evaluation process. Depending on the
circumstances a dedicated staff member may severity of their non-compliance they may be downgraded to a Joint Progress in the Industry
be assigned to conduct on-site verification and backup status or directly blacklisted with cooperation terminated.assessment.By actively participating in various industry activities the Company continuously absorbs advanced practices shares insights
and experiences in the shipping industry and enhances its brand influence and industry visibility. At the same time we actively
Supplier Supplier Supplier
Sourcing Evaluation explore potential markets and collaborate with industry partners to build cooperative platforms aiming to create greater value for Termination
our clients.Supplier Supplier
Onboarding Classification Breakbulk Europe
The Company implements a supplier exit Case
mechanism. A supplier will be deemed non-
compliant if it breaches contracts fails From May 13 to 15 2025 Highton Development participated in the
to meet performance standards violates
The Company has established an business ethics or is involved in major Breakbulk Europe (BBK) held in Rotterdam the Netherlands. During
The Company identifies and screens annual supplier evaluation mechanism quality or service incidents. The Company the exhibition the team engaged in in-depth exchanges with global
potential suppliers through diversified and sets different evaluation criteria for follows a formal notification procedure to shipowners cargo owners and industry partners presenting a
channels including actively participating different suppliers primarily assessing clearly communicate the reason for the exit
in product promotion events and industry indicators such as quality delivery and immediately removes the supplier from professional and open image. This effectively enhanced the Company’s
associations. performance and service capability. the approved supplier list. international brand influence and showcased the strength and capabilities
of Chinese shipping enterprises to the world. Moving forward Highton
Supplier Situation Development will continue to uphold an open and cooperative approach
Key Metrics Unit 2024 2025 working hand in hand with global partners to explore new horizons in
maritime logistics.Total Number of Suppliers Units 940 988 Breakbulk Europe Exhibition
Supplier Review Coverage Rate % 100 100
World Breakbulk Expo Case
Procurement Management From March 6 to 7 2025 Highton Development participated in the
2025 World Breakbulk Expo (WBX) in Shanghai. During the event
To establish a standardized and transparent procurement system Highton Development has formulated and implemented a the Company’s booth attracted numerous domestic and international
series of management regulations including the Foreign-Shipping Oil Procurement Process Standard and the Office Supplies clients for discussions and negotiations. This participation effectively
Procurement System which systemically regulate procurement processes and detailed implementation rules. At the same time enhanced the Company’s brand influence in the international breakbulk
the Company strictly governs the conduct of procurement personnel explicitly prohibiting any abuse of authority for personal shipping sector and laid a solid foundation for subsequent global market
gain ensuring that procurement activities are conducted fairly and with integrity. expansion.World Breakbulk Expo
The Company’s Vessel Operations Procurement Platform and Domestic-Shipping Supplier Bidding Platform are now in operation.The Vessel Operations Procurement Platform comprehensively covers procurement needs for vessel-end supply chain spare parts
73 74Environmental Social and Governance Report 2025 Harmony and Safety Creating a Better Future Together
Harmony and Safety Creating
a Better Future Together
Highton Development values the realization of employee potential and has established comprehensive platforms for training
and career growth enabling employees to gain development and recognition alongside the Company’s long-term progress. The
Company upholds safety as a bottom line deeply cultivates end-to-end safety management and strengthens safety safeguards
across all shipping operations to ensure stable business performance. At the same time it actively fulfills social responsibilities
adheres to the principles of sustainable development and collaborates with partners to build a healthy business ecosystem.Through concrete actions the Company contributes to industry advancement and social development demonstrating corporate
responsibility.Navigation Safety Management
Protecting Employees’ Rights and Interests
Contribution to Society
75 76Environmental Social and Governance Report 2025 Harmony and Safety Creating a Better Future Together
Navigation Safety Management Safety Supervision and ManagementTo fully implement the primary responsibility for work safety the Company has formulated the Management Procedure for
Implementing the Work Safety Responsibility System for All Employees . This procedure aims to clarify and publicly communicate
Highton Development pays close attention to the physical and mental well-being of its employees with particular focus on the the work safety responsibilities of all personnel involved in safety and pollution prevention within the system. By providing
unique working environment of seafarers. The Company has established a comprehensive system of management regulations comprehensive and effective support and safety assurance for the Company’s vessels it continuously enhances employees’
clearly defining safety responsibilities at all levels and implementing measures to safeguard physical and mental health. It awareness of work safety professional skills operational competence and emergency response capabilities. Accordingly the
continuously optimizes occupational health management for both shore-based staff and crew and steadily improves preventive General Manager shore-based staff captains and crew members are all required to sign the Work Safety Responsibility Statement
mechanisms and protection systems creating a safe healthy and stable working environment that effectively safeguards the to ensure that the Company’s work safety policies and guidelines are effectively implemented and enforced.well-being of every employee.Safety Training and Education
The Company has established a training management system and dynamically updates the Annual Shipboard Training Plan and
Governance Annual Shore-based Training Plan to ensure coverage of all shore-based personnel and crew. Captains and department heads
organize relevant training in accordance with actual operational conditions. At the same time the Company strictly implements
Safety Management System the Crew Assessment Designated Promotion and Training Needs Procedure evaluating training effectiveness through
regular assessments and on-site questioning identifying gaps between employees’ actual capabilities and safety management
The Company adheres to the safety philosophy of “Cherish life and respect the ocean” and implements the safety and requirements and developing targeted enhancement training programs accordingly.environmental protection policies of “Safety First Health and Environmental Protection People-Oriented and ContinuousImprovement”. In compliance with the International Convention for the Safety of Life at Sea (SOLAS) and the Law of the People's During the Reporting Period the Company organized multiple planned training sessions on safety laws regulations and
Republic of China on Work Safety the Company has formulated multiple management regulations including: Navigation in Shallow international certifications covering key areas such as the International Safety Management (ISM) Code International Ship and
and Restricted Shallow Waters Guidelines for Anti-Piracy Terrorism and Stowaway Incidents Health Supervision Procedures Port Facility Security (ISPS) Code and the Maritime Labour Convention (MLC) . The training aimed to enhance crew compliance
Shipboard Medical Assistance Instructions and Regulations on Work Arrangements and Rest Periods Onboard . These measures operational safety and risk prevention capabilities. By combining training with recognition programs for outstanding crew
ensure sufficient resource allocation and professional shore-based support for vessel operations effectively creating a safe members and vessels the Company further strengthened the construction of a safety culture effectively guiding all personnel to
healthy and high-quality working environment for all employees. follow standardized operating procedures and ensuring the safety of maritime operations.Board of Directors
Safety Awareness Training Case
The Board of Directors serves as the highest leadership and decision-making body for safety management. It is responsible for approving the
Company’s overall safety policies strategies and objectives and for reviewing and deciding on major safety matters.In November 2025 the Company organized its crew to participate in a safety awareness training conducted by
Fujian Chuanzheng Communications College Fuzhou Maritime Safety Administration and Fuzhou International Crew
General Manager
Club. During the training crew members learned about the risk characteristics and collision avoidance measures for
The General Manager is the primary person responsible for safety tasked with formulating safety policies approving the safety management commercial and fishing vessels and mastered the operational procedures of the Ship Dynamic Monitoring System. The
system ensuring resource allocation and supervising and incentivizing safety management practices.training effectively enhanced their ability to identify risks and respond to emergencies in real operational scenarios.Departments
Marine Department oversees vessel navigation safety pollution prevention operations and emergency drills; responsible for meteorological
navigation cargo stowage and responses to Port State Control (PSC) inspections.Engine Department ensures the safe operation of shipboard mechanical and electrical equipment manages maintenance spare parts supply
and the validity of technical certificates.Crew Department ensures crew competency organizes safety training and assessments handles crew disputes and coordinates personnel
during emergencies.In 2025 the Company conducted a comprehensive review of key aspects of the system including policy implementation fleet
audits and document control. Based on the evaluation the Company’s SMS was confirmed to comply with the International
Safety Management (ISM) Code fully covering vessel safe operation and pollution prevention procedures. The Company’s safety
Crew Safety Training
policies and objectives were effectively implemented and safety and anti-pollution activities were largely in line with documented
requirements demonstrating that the system continues to operate effectively.
77 78Environmental Social and Governance Report 2025 Harmony and Safety Creating a Better Future Together
Safety Training Overview
Key Metrics Unit 2025 Impact Risk and Opportunity Management
Number of Safety Training Sessions Sessions 356
Risk Assessment and Control
Number of Participants in Safety Training Training participants 1027
In the course of shipping operations the Company may face risks such as cargo damage or loss due to force majeure events
Number of Participants in Safety Training Person 319
or human error. To enhance maritime operational safety and reduce the likelihood and severity of incidents the Company has
Total Training Hours Hour 1205 developed the Risk Assessment and Control Procedure . This document identifies evaluates and controls potential risks in key
operational processes continuously strengthening the Company’s capacity to ensure safe transportation.Average Production Safety Training Hours per Employee Hours/Person 3.78
Employee Coverage Rate in Safety Training % 100
Identify potential hazards in the workplace
through physical inspections analysis of task
Safety Certification execution methods use of checklists reference
to general risk assessments and review of
As of the end of the Reporting Period the Company has obtained the Document of Compliance (DOC) issued by relevant accident reports;
authorities including the Maritime Safety Administration of the Peoples’ Republic of China the Panama Flag State and the Marshall Determine risk levels using a risk matrix by Risk Identification
considering the severity of hazards and the Identify hazards by asking key questions such as
Flag State. All applicable vessels have also obtained the Safety Management Certificate (SMC) achieving full standardization and likelihood of occurrence; “Is there a source of harm” and “How could theregulated operation of the safety and pollution prevention management system. harm occur”
Risk assessment records must be retained in Risk Assessment
accordance with regulations and periodically
reviewed to reflect any changes.Implement appropriate control measures based
on the results of the risk assessment to mitigate
Risk Response
risks;
Strategy
Continuously monitor risks and review and update Develop detailed work plans and emergency
them as necessary; procedures to ensure operations are conducted
Risk Monitoring under safe and controllable conditions;
Type of Risk/ Explanation Impact Impact on Conduct a reassessment of risks in the event
Opportunity Description of Financial Response Measures of adverse incidents changes in procedures or Impact Duration Value Chain Hold regular safety meetings conduct safety
alterations in conditions. training and carry out emergency drills;
In the event of a safety
Provide necessary resources and support to
incident the Company may Continuously improve the safety
Cost
Legal Risks face risks such as compensating Mid-term Operations management system in accordance with ensure sufficient emergency response capability
increase
relevant parties or damage to laws regulations and relevant standards. and resources in case of an incident.transportation assets.The Company has established
The shipping industry faces
comprehensive specialized management Safety Inspections and Hazard Identification
multiple risks including severe
systems for various emergencies clearly
weather natural disasters vessel
defining standardized emergency response The Company has formulated the Management Procedure for Preventing Recurrence of Deficiencies Identified in PSC and Other
accidents pirate attacks and
Operational Cost Short- Operations procedures and key handling measures. It equipment failures which can Inspections to address vessel deficiencies and non-conformities identified during Port State Control (PSC) inspections and by other Risks increase term Downstream promotes the standardization transparency
easily lead to safety incidents regulatory authorities. By establishing standardized processes for deficiency analysis and corrective verification the Company
and regulation of emergency response
resulting in vessel and cargo
mechanisms to ensure that emergency ensures that all issues are effectively rectified and prevented from recurring thereby maintaining continuous compliance with
losses compensation and even
handling is systematic efficient and
business disruption. safe operation and environmental protection requirements. The Company using checklists developed based on international
orderly.conventions and its Safety Management System conducts systematic inspections of key areas on its vessels including the bridge
and engine room. Captains and other key personnel carry out pre-arrival self-inspections according to the PSC Inspection Items
Effective safety management Promote the development of an intelligent Pre-Arrival Checklist to ensure that all equipment and operations comply with regulatory and operational standards.In 2025 there
can enhance the Company’s
Medium safety management system;
Operational reputation attract more clients Income Operations
opportunities and long-
were PSC safety inspections FSC inspections internal vessel audits and external vessel audits.or investors and thereby increase Downstream Focus on improving crew capabilities in 182 33 63 45
term
increase revenue or reduce operating smart devices and data analysis
financing costs. (e.g. COSCO Shipping Technology).
79 80Environmental Social and Governance Report 2025 Harmony and Safety Creating a Better Future Together
Safety Emergency Management
Strengthening Safety Management
The Company has established procedures such as the Company Emergency Response Procedure and the Onboard Emergency
Response Guide and Training Manual which clearly define handling protocols for various vessel emergencies including fires
oil spillage and groundings. These procedures provide guidance for different emergency scenarios and continuous training is Cargo Safety Management
conducted to strengthen crew emergency response capabilities ensuring safe navigation.The Company has established relevant management regulations including the Cargo Handling Regulations . Captains are fully responsible for
the safety of onboard personnel and cargo ensuring that cargo operations are conducted safely and in compliance with standards and that
During the Reporting Period the Company implemented its annual drill plan organizing joint ship-to-shore and shore-based cargo is properly safeguarded throughout the transportation process.emergency exercises to continuously test emergency resource allocation personnel coordination and overall response capabilities.These activities aim to enhance both emergency preparedness and safety awareness simultaneously. In 2025 the Company
Typhoon Prevention
conducted 7 ship-to-shore safety emergency exercises. The Company has established multiple regulations including the Heavy Weather Sailing Guidelines Company Typhoon Command and
Operational Procedures and Typhoon Contingency Plan . These measures ensure standardized management of typhoon and severe weather
prevention providing safety assurance for both vessels and crew.Prevention of Piracy and Terrorist Incidents
Metrics and Targets The Company has established the Guidelines for Anti-Piracy Terrorism and Stowaway Incidents . Captains are responsible for the safety
of navigation and special operations implementing measures such as enhanced lookout increased nighttime patrols and maintaining
uninterrupted communications to prevent piracy and armed robbery. The Company has also developed boarding response plans prioritizing the
The Company has established the safety goal of “Zero Accidents Zero Injuries Zero Pollution” and regularly tracks progress safety of crew members.to ensure operational safety employee health and environmental protection. In 2025 the Company continued to strengthen
safety production management and no major safety production accidents occurred throughout the year.Navigation Safety Metrics
Key Metrics Unit 2024 2025
Investment in Work Safety2 in RMB 10000 11072.90 18632.34 Occupational Health and Safety
Number of Work-Related Deaths3 Person 0 0
Total Number of Work-Related Injuries Person 0 0 Occupational Disease Hazard Monitoring
Lost Days due to Work-Related Injury Working Days 0 0 The Company has established the Health Supervision Regulations which require crew members to complete symptom screenings
hearing tests and blood/urine examinations before boarding. This ensures that their physical condition meets maritime
Lost Time Injury Rate (per Million Hours) % 0 0
requirements and that they hold valid health certificates effectively eliminating health risks and safeguarding navigation safety.Lost Time Injury Frequency Rate (LTIR per Million Hours) % 0 0
During the Reporting Period no cases of occupational disease were reported among Company employees.Number of Ship-to-Shore Safety Emergency Drills Session 10 7
Investment in Work-Related Injury Insurance in RMB 10000 8.74 11.10
Occupational Disease Prevention Measures
Hull and P&I Insurance Coverage Rate
%100100
(Including Crew Personal Injury) The Company has established the Crew PPE Usage Management Regulations and the Highton Vessels Onboard PPE and Thermal
Clothing Supplementation Regulations . These regulations specify the issuance standards usage requirements and wearing
Percentage of Special Operators Licensed % 100 100 protocols for various protective equipment. Crew members are provided with essential protective gear such as work uniforms and
safety shoes and their use is mandatory with substitution by cash or other items strictly prohibited.
2 To enhance data comparability and traceability starting from this reporting period the statistical scope of "Investment in Work Safety" has been
expanded from Haitong Development (the parent company) to all entities within the scope of consolidated financial statements. The 2024 data has
been adjusted accordingly and the adjusted data can more comprehensively reflect the Company's overall safety investment.
3 Scope of data statistics: Self-employed staff only excluding interns dispatched personnel and outsourced employees.
8182
Work Safety Occupational HealthEnvironmental Social and Governance Report 2025 Harmony and Safety Creating a Better Future Together
Emergency Rescue and Medical Support Protecting Employees’ Rights and
The Company has established the Shipboard Medical Assistance Instructions which ensure that crew members receive timely and
effective medical care onboard. Measures include equipping vessels with medical resources establishing communication channels
activating emergency procedures regularly inspecting facilities and conducting training all aimed at safeguarding the physical Interestsand mental health of crew members. The Company upholds the talent philosophy of “Working together as one and leveraging individual strengths; Prioritizingintegrity and emphasizing performance” fostering mutual development with employees. It is committed to building a fair and
Care about Mental Health open platform for talent growth continuously improving training and empowerment systems standardizing career advancement
pathways and implementing fair incentive mechanisms. This provides employees with a broad stage to showcase their abilities
The Company has established the Mental Health Management Procedure and provides professional services through onboard and apply their expertise. Through systematic protection and structured support the Company promotes deep integration and
psychologists. In addition the Company supports captains in implementing effective mental health management measures alignment between individual employee value and organizational objectives uniting all staff to work collaboratively and achieve
including regular mental health training dissemination of mental health knowledge and provision of counseling services to shared progress thereby realizing long-term goals of coordinated development and mutual growth for both the Company and its
enhance crew members’ awareness of psychological issues and their ability to self-regulate and cope. employees.In addition the Company actively optimizes the onboard working and living environment for crew members organizing a variety
of cultural and recreational activities promoting healthy lifestyles and ensuring adequate rest. These efforts help crew relieve
work-related stress and maintain a positive mindset thereby supporting overall mental health. Compliant Employment
During the Reporting Period in accordance with the 2025 Annual Training Plan the Company organized a total of 3 training Highton Development strictly adheres to the Labor Law of the People’s Republic of China
sessions throughout the year focused on crew mental health. and the Labor Contract Law of the People’s Republic of China upholding the recruitment
principle of “open recruitment equal competition and merit-based selection”. The In 2025
Company has established the Employee Handbook and Human Resources Management
Day of the Seafarer and Crew Mental Health Training Case System. Recognizing talent as the most critical development factor and a valuable asset the Company achieved
the Company is committed to translating this philosophy into action through systematic
On the occasion of Day of the Seafarer the Ship Management Center successfully organized a series of themed activities policies fostering collective momentum for organizational growth. a100% labor
in April. In the morning crew members participated in lectures on maritime culture and mental health training which
enhanced their sense of professional mission and psychological resilience. In the afternoon senior crew visited historical For the crew the Company manages employment and performance in accordance with contract signing rate.maritime sites strengthening team cohesion through cultural heritage exploration. This event effectively combined cultural standardized procedures such as the Crew Employment Assignment and Assessment
empowerment with team building providing strong support for the development of a high-quality crew. Procedure . Through qualification review on-the-job assessment contract signing and
position promotion processes the Company ensures proper management of crew hiring
and duties. This safeguards crew members’ legal rights including career development
opportunities while ensuring that vessels are staffed with a sufficient number of qualified
and competent personnel providing reliable teams to support shipping operations.The Company recruits talent through multiple channels including social recruitment campus recruitment internal referrals and
school-enterprise cooperation. By relying on standardized processes clear criteria and comprehensive evaluations the Company
selects outstanding candidates who demonstrate strong job fit good personal qualities and development potential continuously
injecting vitality into the organization’s growth.Recruitment Process
Lecture on Mental Health for Modern Seafarers
Resume Telephone Comprehensive Background Hiring Official Post-Onboarding
Screening Inquiry Assessment Check Approval Onboarding Follow-up and
(Interview/Evaluation/ Evaluation
Examination etc.)
8384
Key PerformanceEnvironmental Social and Governance Report 2025 Harmony and Safety Creating a Better Future Together
Shore-Based Employee Recruitment
School-Enterprise Collaboration: A New Journey for the
Maritime Industry Key Metrics Unit 2025
Within its maritime talent development ecosystem Highton Development actively deepens industry-education Number of New Shore-Based Employees Person 99
integration by establishing stable partnerships with multiple maritime institutions including Jimei University Fujian
Chuanzheng Communications College and Quanzhou Ocean Institute. Through signing agreements co-establishing
internship bases offering “order-based classes” and conducting on-campus recruitment the Company precisely aligns
Female：40 Person Social Recruitment：82 Person
talent cultivation with enterprise needs providing customized training and supplying skilled maritime professionals. By Gender By Recruitment
Male：59 Person Channel On-Campus Recruitment：17 Person
In addition the Company continuously offers skills training for both students and active crew members building a
school-enterprise collaborative system that matches supply and demand for crew development and placement thereby
supporting high-quality development in the shipping industry.Maritime University Corporate Visit The second phase of the Maritime University & Highton Development corporate
visit program was successfully completed Protection of Employees’ Rights and Interests
From January 6 to 10 2025 Highton Development in collaboration with Dalian
Maritime University and Shanghai Maritime University organized the second phaseof its corporate visit program. Centered on the theme “Exploring Competency Anti-Child Labor and Forced Laborfor Dry Bulk Business Talent” the program enabled students to gain in-depth
understanding of dry bulk shipping operations and career development paths The Company strictly complies with laws and regulations such as the Regulations on Prohibiting the Use of Child Labor the
through on-site visits and industry practice. This initiative further strengthened Maritime Labour Convention and the Forced Labour Convention resolutely prohibiting and opposing the employment of child
the school-enterprise cooperation mechanism providing an important platform
for cultivating maritime professionals who meet industry demands and actively labor and all forms of forced labor. The Company has established the Management System for the Prevention of Child Labor and
contributing to the development of a skilled maritime workforce. Forced Labor and stipulates in the Employee Handbook that the hiring of child labor or forced labor is strictly forbidden. In the
event of inadvertent employment of child labor immediate remedial measures are to be taken. Additionally age verification has
Campus Recruitment “Set Sail” Training Program been made a mandatory pre-screening step in the recruitment process to ensure that all hired personnel fully meet the legal age
Highton Development Campus Recruitment “Set Sail” Training Program requirements. During the Reporting Period the Company did not employ any child labor or engage in any forced labor.In 2025 Highton Development organized a four-day intensive training program for
fresh graduates. Led by a team of senior and mid-level business mentors the training
focused on three core modules: corporate culture core business and workplace skills. Building a Diverse Team
Through this program new campus recruits achieved comprehensive development
progressing from cultural integration and business understanding to a full transition The Company adheres to laws and regulations such as the Law of the People’s Republic of China on Employment Promotion and
into their professional roles. The Elimination of Discrimination in Respect of Employment and Occupation and has established the Diversity Equality and
Inclusion Policy . It firmly opposes workplace discrimination and harassment and is committed to creating a diverse equitable fair
and inclusive working environment for all employees. The Company pledges to ensure that throughout the entire talent selection
Summer Employment Practice Program Dalian Maritime University 7th Summer Employment Practice Program Visits
Highton Development process no distinctions are made based on gender age race ethnicity religious beliefs social status or physical health and that
no additional conditions beyond the established job requirements are imposed thereby safeguarding objectivity and fairness in
On July 24 2025 a delegation of faculty and students from the School of Law
Dalian Maritime University visited Highton Development for the summer employment talent decisions.practice program. The two sides engaged in in-depth discussions on maritime
talent cultivation. Through company introductions team-building exercises and
alumni sharing sessions the Company helped students deepen their understanding
of the shipping industry laying a solid foundation for further school-enterprise During the Reporting Period the turnover rate of shore-based employees was 21.36% and the retention
collaboration.rate of seafarers was 76.12%4.Shanghai Maritime University Summer Research on Student Employment Visits Summer Research on Student Employment
Highton Development
Employee Structure
On August 15 2025 Pu Lina Deputy Secretary of the Party Committee of the School
of Logistics Science and Engineering at Shanghai Maritime University led a team of Key Metrics Unit 2025
faculty members to Highton Development for a student employment research visit.The two parties conducted in-depth discussions on deepening school-enterprise Total Number of Employees Person 368
cooperation and talent cultivation. The Company provided detailed presentations on
its development prospects talent strategy and employee training system. This activity Total Number of Shore-Based Employees Person 242
laid a solid foundation for further expanding collaboration and jointly nurturing high-
quality professionals for the shipping industry. Total Number of Crew Members Person 126
4 Scope of data statistics: Self-owned crew members only excluding trainee crew members dispatched personnel and outsourced crew members.
8586
Key PerformanceEnvironmental Social and Governance Report 2025 Harmony and Safety Creating a Better Future Together
Protection of Female Employees’ Rights and Interests
Number of Number of The Company strictly implements the Law of the People’s Republic of China on the Protection of Rights and Interests of Women
Employees by Employees by the Provisions on the Scope of Prohibited Labor for Female Employees and other relevant laws and regulations and continuously
Region Gender strengthens the protection of the rights and interests of female employees. The Company provides female employees with special
leave entitlements including prenatal check-up leave maternity leave and nursing leave ensuring that every female employee
Chinese Mainland：361 Person Female：105 Person enjoys equal respectful and safe treatment in the workplace.Hong Kong Macao and Taiwan China：5 Person Male：263 Person
Overseas Regions：2 Person
Women’s Day Activities Case
To celebrate International Women’s Day on March 8 the Company organized a ring-
Number of Number of toss game. Female employees participated enthusiastically relieving work-related
Employees by Employees (by
Profession) stress in a relaxed and enjoyable atmosphere while fully experiencing the joy of the Age
festival and the Company’s care. This activity not only enriched the spiritual and
cultural life of female employees but also enhanced team cohesion.Under 30 (Exclusive) Years Old：114 Person Administrative Staff：37 Person
30 to 40 Years Old (Inclusive of 30 Exclusive of 40)：132 Person Financial Audit Staff：32 Person Women’s Day Activities
40 to 50 Years Old (Inclusive of 40 Exclusive of 50)：80 Person Procurement Staff：14 Person
50 Years Old or Above：42 Person Information Technology Staff：25 Person
Shipping Operations Staff：94 Person
Ship Management and Technical Staff：40 Person Care for Employees in Need
Crew Members：126 Person
When employees are hospitalized due to illness injured at work or experience bereavement the Company arranges for
representatives to visit them and provides condolence payments to express its sincere care and support.Number of Number of
Employees Employees
(by Employee (by Academic During the Reporting Period the Company provided assistance to a total of 5 employees in need. The number of employees in
Level) Qualification)
difficulty assisted per RMB 100 million of revenue was 0.11.Directors and Senior Management：5 Person Master’s Degree or Above：24 Person
Mid-Level Management：31 Person Bachelor’s Degree：166 Person
Frontline Employees：332 Person Junior College and Below：178 Person
Optimization of Remuneration and Benefits
Note: The above statistics on the Company’s employees do not include interns trainee crew members or dispatched and outsourced personnel. As of the end of the
Reporting Period the total number of crew members on the Company’s self-owned vessels was 1302 persons (including trainee crew and dispatched crew). Compensation System
The Company has established a standardized compensation management framework by formulating the Compensation
Democratic Governance Management Policy and the Seafarer Compensation Management Policy clearly defining the components of remuneration and
The Company relies on regular mechanisms such as the Employees’ Representative Congress to fully safeguard employees’ the mechanisms for dynamic adjustment. For shore-based employees the Company adopts a structured compensation system
democratic rights. Through employee representatives the Company effectively exercises democratic management and comprising basic salary position-based salary performance-based pay length-of-service pay benefits and allowances and an
supervisory functions thereby protecting employees’ lawful rights interests and legitimate benefits. During the Reporting annual performance bonus. Seafarer compensation consists of basic salary position allowances other subsidies and a repatriation
bonus. With respect to salary adjustments the Company takes into comprehensive consideration multiple factors including
Period the Employees’ Representative Congress reviewed 1 proposals/projects. industry-wide wage growth inflation levels changes in job positions and the Company’s operating performance to ensure that
the compensation system is aligned with the Company’s stage of development while achieving an appropriate balance between
internal equity and external market competitiveness.The Company continues to strengthen its people-oriented care by conducting regular employee satisfaction surveys covering
all employees each year. In 2025 246 responses were collected from the shore-based employee satisfaction survey with Equity Incentive
In April 2025 the Company held a board meeting to review and approve the Proposal on the 2025 Stock Option and Restricted Stock
an overall satisfaction score of 4.40 (out of 5). The domestic-shipping seafarer satisfaction survey collected 126 Incentive Plan (Draft) of Fujian Highton Development Co. Ltd. and Its Summary . Since 2023 the Company has consecutively implemented
equity incentive plans for three years (2023–2025). By closely linking the personal growth of core talents and key technical personnel with
responses with an overall satisfaction score of 4.37 (out of 5). the Company’s performance growth and value enhancement the plan aligns the objectives and direction of the Company shareholders and employees forming a solid community of shared interests and development.
87 88Environmental Social and Governance Report 2025 Harmony and Safety Creating a Better Future Together
Welfare System managing employee training and development while the Human Resources Department coordinates the planning development
Human Resources Management System and operation of the Company’s training system ensuring that training effectively supports talent development and strategic The Company clearly defines and specifies the composition of employee benefits in the
Compensation and Benefits Policy implementation. Each department is responsible for identifying training needs within its domain documenting business knowledge and the . The Company strictly implements statutory benefits by contributing to employees’
facilitating employee participation and evaluating training outcomes ensuring that the training system is integrated into frontline
pension insurance medical insurance work-related injury insurance unemployment insurance and maternity insurance in
business operations to create tangible value.accordance with the law. In addition the Company provides non-statutory benefits such as transportation and communication
allowances as well as marriage and childbirth grants covering employees’ work and daily living needs and reflecting the The Company has established a comprehensive talent training system combining online and offline methods as well as internal
Company’s people-oriented approach and commitment to employee care. and external resources. The system covers multiple levels of training including new employee onboarding job-specific skills
The Company has established the Attendance and Leave Management Policy training and management development programs. Through these systematic and targeted training activities the Company aims to implementing a flexible work schedule of five days
comprehensively enhance employees’ professional competence and overall capabilities.per week and seven hours per day while standardizing the management of various types of leave. To ensure navigation safety
and safeguard crew members’ legal rights the Company implements a minimum rest period system for crew in accordance with Types of Training
the Regulations on the Management of Working Hours Onboard . Using tools such as the Vessel Work Schedule and Crew Work
and Rest Statistics the Company maintains full-process records and dynamic tracking effectively ensuring compliance with crew Induction Training
work-rest management requirements. Industry knowledge company overview corporate culture company policies and regulations essential job knowledge general skills and
professional conduct
Performance Management and Feedback Job-Specific Skills Training
New concepts technologies and professional knowledge relevant to the role
The Company has established the Performance Management Policy which evaluates employee contributions based on monthly
key priorities and additional plans aiming to enhance both employee capabilities and organizational effectiveness. In addition the Management Training
Company has implemented a routine performance feedback and appeal mechanism. If an employee disagrees with an assessment Management skills leadership development planning and decision-making abilities
result they may submit an appeal to the Human Resources and Administration Center. The relevant department is required to
complete the review and provide a response within 7 working days.Corporate Culture Workshop Case
Performance Appeal Process
Employee Disagrees with Assessment Result To deepen employees’ understanding of the Company’s core values and
strengthen their sense of identity and belonging thereby fostering team
cohesion the Company conducted a dedicated corporate culture training for all
Submit Appeal Letter
employees. The training guided participants to explore the rich connotations of
gratitude loyalty and dedication while inspiring them to internalize and practice
Human Resources and Administration Center Investigates the values of “Struggle Responsibility Collaboration Innovation”. It encouraged
every employee to take advancing the Company toward becoming a world-class
Corporate Culture Specialized Training
Determine Acceptance Explain the Reason to the Employee shipping brand as a shared mission and to work together toward this goal.No
Yes
Can It Be Resolved Through
Coordination No Leadership Training – Management Capability Enhancement Bootcamp Case
Yes
From April 21 to 22 2025 the Company successfully held a
Resolve Through Coordination Submit to the Compensation and Evaluation Committee for Review Management Capability Enhancement Bootcamp on the 51st
floor of ICC with mid-to-senior managers and key position
personnel participating. Through case studies experience sharing
and interactive sessions the bootcamp effectively enhanced
Supporting Employee Growth participants’ management thinking and cross-departmental
collaboration skills. The Company will continue to follow up on the
application of learning outcomes strengthening the management
Training Management System team through a systematic development mechanism to ensure a Management Capability Enhancement Bootcamp
The Company has established internal regulations including the Training Management Policy to comprehensively enhance robust talent pipeline supporting the Company’s growth.employees’ business knowledge professional skills and management capabilities. The Board of Directors supervises and approves
major matters related to employee training strategies and objectives. The General Manager is responsible for overseeing and
89 90Environmental Social and Governance Report 2025 Harmony and Safety Creating a Better Future Together
Seafarer Training Overview
Seafarer Training and Team-Building – “Embrace the Sea Lead with Ambition” Case
Key Performance Unit 2025In April 2025 the Company organized a seafarer training and team-building activity themed “Embrace the Sea Lead Training Investment for Seafarers in RMB 10000 1.43with Ambition”. A total of 19 top-ranked crew members on leave participated. The program included corporate culture
promotion skills training technical exchange and cultural heritage exploration aiming to enhance the seafarers’ Number of Training Sessions for Seafarers Session 358
professional competence strengthen team collaboration and reinforce their identification with the Company’s culture.Total Number of Seafarers Trained Person 319
Total Participants of Seafarers Trained Training participants 1027
Total Training Hours for Seafarers Hour 1205
Average Annual Training Hours per Seafarer Hours/Person 3.78
Training Coverage Rate for Seafarers % 100
Seafarer Workshops Visit to the Museum of Foochow Arsenal Note: The above seafarer training statistics pertain to the Company’s own crew members on self-managed vessels.Digitalized Training for Seafarers Case Improving the Training System
The Company consistently regards talent development as a core driver of sustainable growth. By building an internal instructor
To address the systematic training needs of seafarers and the limitations of onboard learning networks Highton team establishing training platforms and implementing a mentorship program the Company continuously enhances its training
Development has established a digital training platform with efficient coordination between a PC backend and a seafarer system. The goal is to comprehensively and multi-dimensionally improve the professional skills of all employees and cultivate a
mobile app. Crew members can access learning modules anytime and anywhere in a modular and phased manner via high-quality highly capable talent team.both PC and app. The platform leverages onboard intelligent data exchange devices to effectively overcome network and
cost constraints. Additionally the system incorporates a ranking and assessment mechanism to motivate active learning
Construction of an In-House Instructor Team
and maintains full data records to objectively evaluate training outcomes ensuring that the entire training process is
controllable traceable and incentivized. The Company has established the Instructor Management Measures to standardize the management of internal instructors and build a
professional instructor team. This effectively supports training across all levels promotes the accumulation of internal experience and facilitates
knowledge sharing. In addition the Company has implemented a comprehensive instructor incentive mechanism including cultural recognition
instructor allowances performance awards and promotion priority fully motivating instructors’ enthusiasm and creativity.Shore-Based Employee Training Overview
Key Performance Unit 2025 Training Platform Construction
Training Investment for Shore-Based Employees in RMB 10000 36.48 The Company has launched the “Cool College” online training platform effectively overcoming time and space constraints and enabling
employees to engage in flexible self-directed learning during fragmented time. Employees can select learning content based on their career
Number of Training Sessions for Shore-Based Employees Session 170 development needs practical work scenarios and personal interests achieving personalized and systematic skill enhancement.Total Number of Shore-Based Employees Trained Person 298
Mentorship Program Implementation
Total Participants of Shore-Based Employees Trained Training participants 2917
The Company implements the Mentorship Program Implementation Plan establishing a one-on-one mentorship system for new
Training Coverage Rate for Shore-Based Employees % 100 hires and employees newly assigned to different positions. Upon arrival employees are assigned a mentor by the department
head who provides guidance to help them quickly adapt to their role and integrate into the team. At the end of the mentorship
Total Training Hours for Shore-Based Employees Hour 7381 period employees can only complete the program after a mentor assessment confirms satisfactory performance ensuring the
quality of talent development and alignment with job requirements.Average Annual Training Hours per Shore-Based Employee Hours/Person 24.77
91 92Environmental Social and Governance Report 2025 Harmony and Safety Creating a Better Future Together
Support for Employee Development
Building a Learning-Oriented Enterprise Case
The Company has established position management systems such as Employee Appointment and Transfer Management creating
career development pathways across four sequences: management functional technical and marketing. This enables employees The Company encourages learning and is committed to cultivating
to choose growth paths that suit their strengths whether through vertical advancement or horizontal expansion. For the seafarer a learning-oriented organization actively promoting a culture of
workforce the Company continuously optimizes the Seafarer Promotion Management Regulations standardizing promotion continuous learning and knowledge sharing. Through industry
processes and criteria. Incentive mechanisms such as return-to-ship bonuses are also implemented to attract and retain exchanges and cross-team experience-sharing sessions employees
talented seafarers ensuring safe vessel operations and a stable crew structure. can interact and communicate efficiently exchanging practical
experience and innovative ideas. This open interaction not only
The Company encourages employees to independently plan their career development by aligning their professional capabilities
accelerates problem-solving but also significantly enhances
with business needs. This approach allows employees to realize personal value while growing together with the Company
team efficiency and professional capabilities. The Company
creating a virtuous cycle in which talent development and corporate strategy mutually reinforce each other.enables every member to grow rapidly through communication
Highton Development Job Grade and Career Path System transforming individual experience into collective wisdom Learning and Exchange Sessions
Career Path Job Type Grade Sequence jointly driving efficient project delivery and achieving a win-win
improvement in both personal skills and team effectiveness.Management Sequence Management Positions M1-M10
Technical Professional
Sequence Positions in Ship Operations Engineering Systems Procurement etc. T1-P6
Functional Professional
Sequence Positions in Finance Accounting Cashier Legal Audit Administration HR Operations etc. P1-P6 Creating a Welcoming Haven
Marketing Sequence Positions in Marketing Sales Business Development Commerce etc. S1-S10 The Company organizes a variety of engaging and diverse cultural activities to create a warm vibrant and inclusive work
environment aiming to continuously enhance employee satisfaction and team cohesion while building a strong spiritual
To enhance employees’ overall competencies and meet the Company’s talent requirements the Company formulated relevant bond between employees and the enterprise for mutual development. The Company implements the 6S Office Environment
regulations providing subsidies for employees’ education and training in management knowledge professional skills and on- Management system which sets clear requirements for cleanliness safety and resource utilization in all office and public areasthe-job degree programs. This initiative actively encourages employee development and growth fostering a positive “learning ensuring a safe efficient and orderly working environment.enterprise” culture.Corporate Cultural Activities Case
Organizing the Company’s 2024 Performance Awards Case
Year-End GalaTo recognize ships and employees with outstanding performance and significant contributions in the Company’s On January 22 the Company held the 2024 year-end gala themed “Love
2024 business management and to foster exemplary role models across the organization the Company conducted Highton Embrace a Wonderful Life”. This annual event serves as a regular
the selection of the Highton Development 2024 “Sailing Excellence Award” “Maritime Pioneer Award” and “Outstanding company tradition aiming to review the past year’s work and recognizeWorker Award” in accordance with the principles of fairness impartiality and transparency. the contributions of all employees. The gala also provides a platform for
communication to kick off the new year’s work. The Company announced its
commitment to continue advancing various business initiatives in 2025.Gala Event Venue
Crew Professional Skills Training Case “Navigating Together Embarking on a Shared Journey” Corporate Culture Day
On June 14 2025 the Company successfully held a 20-kilometer trekking andIn September 2025 the first “Highton-Prosean Electric Welding Intensive team-building activity as part of its Corporate Culture Day on Dalian IslandTraining Cohort” successfully concluded jointly organized by Highton Pingtan. Despite heavy rain and muddy conditions all participating employees
Development HN Prosean Shipping Co. Ltd. and Henan Electric Power faced the challenge head-on consistently upholding the Company’s values
Vocational Training School. This training program provided the Company with of “Struggle Responsibility Collaboration Innovation”. They demonstrated
a group of skilled electric welders achieving seamless integration between exceptional teamwork and resilience ultimately completing the challenge as
training and employment. Moving forward both parties will continue to deepen a group. This activity not only strengthened employees’ perseverance but
this training model and further expand the scale of skilled talent development. also reinforced their recognition of the corporate culture and enhanced team
Event Venue
Graduation Ceremony of the Intensive Training Cohort cohesion through practical experience.
93 94Environmental Social and Governance Report 2025 Harmony and Safety Creating a Better Future Together
Organizing Festival Activities Case Contribution to Society
Dragon Boat Festival Activity China Maritime Day Activities
To uphold the traditions of the Dragon Boat Festival In July 2025 the Company held a themed event for China
the Company held a festival event in advance Maritime Day. The event featured activities such as maritime- Contributing to Social Welfare
on May 30 and distributed holiday gifts to all themed competitions and storytelling sessions. Through this
employees. While celebrating this traditional festival lively and engaging format the Company recognized the The Company has always upheld a strong sense of social responsibility and actively engages in various social welfare initiatives.the activity also enhanced employees’ engagement professional dedication of maritime personnel paid tribute to Through charitable donations the Company gives back to society putting corporate social responsibility into practice and
in the Company’s corporate culture initiatives. the spirit of seafaring and strengthened team cohesion. contributing solidly to building a harmonious mutually supportive and prosperous social environment. During the Reporting
Period the total number of volunteer participants was 20 person-times with a total volunteer service duration of 40
hours.Deepening Educational Collaboration
Distribution of Festival Gifts China Maritime Day Event
The Company actively strengthens university-enterprise cooperation by establishing the “Highton Scholarship” at Dalian Maritime
The Company regularly provides care and support for its employees through activities such as inviting retired employees to attend University and Jimei University. On one hand it provides incentives for outstanding students to support their growth; on the
the annual meeting conducting onboard inspections and visiting crew members to listen to their feedback and address their other hand it builds a platform for close collaboration with the university laying a solid foundation for the Company to attract
practical needs. To continuously improve living conditions on board the Company has purchased various recreational facilities to high-quality talent in the industry. During the Reporting Period the Company made cumulative donations of RMB 81000 to
enrich the crew’s cultural and leisure life outside of work. In addition the Company invites crew members and their families to support educational development initiatives.participate in annual meetings and other collective activities further enhancing their sense of belonging and well-being allowing
them to work with peace of mind and enjoy a comfortable life.The Company has jointly established off-
campus internship and practical training
bases with the School of Law the School
of Transportat ion Engineering and the
School of Foreign Languages at Dalian
Maritime University. This collaboration closely
connects classroom theoretical knowledge
with real-world scenarios in the shipping
industry helping students gain an in-depth
Onboard Fitness and Recreational Facilities understanding of industry practices and
accumulate valuable hands-on experience for
their future careers thereby forming a virtuous
cycle of university-enterprise collaborative
talent cultivation. During the Reporting Period
the Company further explored diversified Joint Construction of Practical Teaching Base
models of industry-education integration.Through complementary advantages and industry-academia collaboration we strive to closely align the Company’s talent needs
with the universities’ talent development directions accurately meeting the Company’s workforce requirements at different
stages of development.Crew Visits and Care Activities
95 96Environmental Social and Governance Report 2025 Harmony and Safety Creating a Better Future Together
Respond to the Construction of the Belt and Road Initiative
The Pingtan Comprehensive Experimental Zone where the Company is located serves as an important bridge connecting both sides of the Taiwan Strait along the “Belt and Road”. Leveraging Fujian’s strategic advantage of “prospering by the sea” we have established a shipping
network covering both domestic coastal areas and international ocean routes actively implementing the “Maritime Power” strategy and the concept of green development. Through our subsidiaries we engage in the international transport of dry bulk cargo such as coal grain and
rolled steel with shipping routes spanning over 350 ports in more than 100 countries and regions worldwide.In recent years alongside China’s efforts to diversify corn import sources the company has increasingly strengthened its agricultural product trade with “Belt and Road” countries such as Bulgaria. Our well-established global network not only comprehensively meets customer
needs but also contributes to building a stable and sustainable food supply channel.Maritime Rescue
Highton Development actively participates in maritime rescue operations responding to various at-sea emergencies with professional and efficient capabilities fully safeguarding human life. In international rescue efforts the Company takes initiative and acts proactively relying on a mature
rescue system and a strong sense of responsibility to uphold humanitarian principles. By doing so it effectively fulfills its social responsibility contributing solidly to maintaining maritime safety and protecting the lives and rights of personnel.
97 98Environmental Social and Governance Report 2025 Afterword to the Report
Afterword to the Report
Key Performance Indicators
Governance Performance Proportion to Net Profit Attributable to Shareholders of the Listed % 16.70 19.95
Company in Consolidated Financial Statements
Key Metrics Benchmark Units 2024 2025
Performance Exchange Meeting Times 4 5
Corporate Governance
Information Disclosure
Total Number of General Meetings of Shareholders Held Times 5 6
Number of Periodic Reports Disclosed Externally Copy 4 4
Number of Annual Shareholders' Meeting Held Times 1 1
Number of Interim Announcements Disclosed Externally Copy 116 131
Number of Special Meeting of Shareholders Held Times 4 5
Number of Penalties for Violations in Information Disclosure Times 0 0
Number of Proposals Reviewed and Approved Item 24 28
Number of Board Members Person 7 7 Compliance and Business Ethics
Percentage of Female Directors % 14.29 14.29 Number of Anti-Bribery and Anti-Corruption Trainings Organized Times 13 19
Percentage of Independent Directors % 42.86 42.86 Number of Directors and Management Participating in Anti-
Training participants 8 16
Commercial Bribery and Anti-Corruption Training
Number of Meetings of Board of Directors Held Times 18 18
Training Coverage Rate of Directors and Management % 100 100
Number of Proposals Reviewed and Approved Item 57 69
Number of Employees Participating in Anti-Corruption Training Training participants 281 269
Number of Meetings of Specialized Committees Held Times 15 14
Number of Internal Integrity Special Audits Conducted Times / 8
Number of Proposals Reviewed and Approved Item 27 44
Signing Rate of Integrity Pledges by Shore-Based Employees % / 100
Investor Relations Management
Cash Dividend per Share yuan/share 0.1 0.1 Total Number of Anti-Corruption and Anti-Bribery Reporting Cases Times 0 0
Total Cash Distribution (Including Tax) in RMB 10000 9116.13 9277.71 Number of Corruption Litigation Cases Filed and Concluded Case 0 0
99 100Environmental Social and Governance Report 2025 Afterword to the Report
Environmental Performance tCO e/RMB 1 million GHG Emission Intensity 2 144.11 173.71(revenue)
Key Metrics Benchmark Units 2024 2025 Direct GHG Emissions (Scope 1) tCO2e 526695.97 771010.72
Environmental Management Indirect GHG Emissions (Scope 2) tCO2e 566.97 591.12
Total Environmental Investment in RMB 10000 1553.04 4137.41 Other Indirect Emissions (Scope 3) tCO2e / 176.38
Amount of Major Administrative Penalties Imposed by Ecological
in RMB 10000 0 0 Water Resource Utilization
and Environmental Authorities due to Environmental Incidents
Total Water Consumption ton 31336.49 34301.11
Energy Management
Office Water Consumption ton 1155.24 925.71
Total Direct Energy Consumption tce 237335.44 347422.38
MDO (Marine Diesel Oil) & MGO (Marine Gas Oil) ton 10552.32 24409.37 Freshwater Consumption by Vessels ton 30181.25 33375.40
HFO (Heavy Fuel Oil) ton 131029.42 189386.79 Seawater Desalinated by Vessels ton 44015.57 79045.10
LFO (Light Fuel Oil) ton 24339.23 28903.35 Water Consumption Intensity t/RMB 1 million (revenue) 8.56 7.72
Gasoline Litres / 5813.31 Waste Gases
Total Fuel Oil Consumption ton 165920.97 218290.14 Nitrogen Oxides (NOX) Emissions ton 12390.90 17952.48
Total Indirect Energy Consumption tce 129.86 135.39 Nitrogen Oxides (NOX) Emission Intensity t/RMB 1 million (revenue) 3.39 4.04
Office Electricity Consumption kWh 111696.32 119412.13 Sulfur Oxides (SOX) Emissions ton 1410.83 2034.95
Total Shore Power Consumption kWh 944897.83 982195.20 Sulfur Oxides (SOX) Emission Intensity t/RMB 1 million (revenue) 0.39 0.46
Number of Shore Power Uses Times 170 179 Waste
Total Energy Consumption tce 237465.30 347557.77
Hazardous Waste Generated m3 / 423.44
tce/RMB 1 million
Energy Consumption Intensity 64.9 78.23
(revenue) Non-Hazardous Waste Generated m3 / 2031.61
Number of Vessels Completed with EPL Retrofit Ship 40 56 Total Waste Discharged into the Sea m3 1531.73 1392.46
Number of Vessels Passed EEXI Classification Audit Ship 40 56 Total Waste Recycled Onshore m3 526.48 1044.16
Response to Climate Change Biodiversity Protection
Total GHG Emissions tCO2e 527262.94 771778.22 Number of Vessels Equipped with Ballast Water Treatment Systems Ship 40 56
101 102Environmental Social and Governance Report 2025 Afterword to the Report
Social Performance Number of New Shore-Based Employees Person 114 99
Percentage of New Employees by Gender
Key Metrics Benchmark Units 2024 2025
Female Person 38 40
Data Security and Customer Privacy Protection
Male Person 76 59
Number of Information Security Training Sessions Held Times 13 2
Percentage of New Employees by Recruitment Channel
Number of Participants in Information Security Training Training participants 110 35
Social Recruitment Person 82 82
Total Duration of Information Security Training Hour / 70
On-Campus Recruitment Person 32 17
Average Duration of Information Security Training Hour / 2
Other Recruitment Channels Person 0 0
Number of Incidents of Information Security and Privacy Protection
Times 0 0
Violations during the Reporting Period Total Turnover Rate of Shore-Based Employees % 22.56 21.36
Customer Service Crew Retention Rate % 73.79 76.12
Number of Customers Participating in Survey Units / 58
Number of Employees In Difficulty Assisted Person / 5
Customer Satisfaction Rate % / 97.85 The Number of Employees In Difficulty Assisted Per RMB 100 Million
Person / 0.0011
of Revenue
Customer Complaint Resolution Rate % / 100
Employee Satisfaction
Timely Resolution Rate of Customer Complaints % / 100
Number of Shore-Based Employees Participating in Satisfaction
Person 192 246
Survey
Supply Chain Management
Satisfaction Score of Shore-Based Employees Points 4.26/5 4.40/5
Total Number of Suppliers Units 940 988
Number of Domestic Trade Crew Members Participating in
Person 125 126
Satisfaction Survey
Supplier Review Coverage Rate % 100 100
Satisfaction Score of Domestic Trade Crew Members Points 4.51/5 4.37/5
Number of Events with Significant Risks and Impacts in the Supply
Case 0 0
Chain
Diversity and Equal Opportunity
Number of Personnel Involved Person 0 0
Total Number of Employees Person 355 368
Number of Suppliers Involved Units 0 0
Total Number of Shore-Based Employees Person 210 242
Amount of overdue payments to SMEs in RMB 10000 0 0
Total Number of Crew Members Person 145 126
Labor Relations Management
Number of Employees by Region
Percentage of Contract Workers % 100 100
Chinese Mainland Person 348 361
103 104Environmental Social and Governance Report 2025 Afterword to the Report
Hong Kong Macao and Taiwan China Person 5 5 Master’s Degree or Above Person 17 24
Overseas Regions Person 2 2 Bachelor’s Degree Person 146 166
Number of Employees by Gender Junior College and Below Person 192 178
Female Person 89 105 Development and Training
Male Person 266 263 Investment in employee training in RMB 10000 23.61 37.91
Number of Employees (by Employee Level) Staff training hours Hour 6650 8586
Directors and Senior Management5 Person 6 5 Employee Training Participants Training participants 3425 3944
Mid-Level Management Person 27 31 Employee Training Coverage Rate % 100 100
Frontline Employees Person 322 332 ——Shore-Based Employees
Number of Employees (by Profession) Training Investment for Shore-Based Employees in RMB 10000 22.9 36.48
Administrative Staff Person 50 37 Number of Training Sessions for Shore-Based Employees Session 163 170
Financial Audit Staff Person 28 32 Total Number of Shore-Based Employees Trained Person 257 298
Procurement Staff Person 11 14 Total Participants of Shore-Based Employees Trained Training participants 2421 2917
Information Technology Staff Person / 25 Training Coverage Rate for Shore-Based Employees % 100 100
Shipping Operations Staff Person 83 94 Total Training Hours for Shore-Based Employees Hour 5836 7381
Ship Management and Technical Staff Person 38 40 Average Annual Training Hours per Shore-Based Employee Hours/Person 22.71 24.77
Number of Crew Members (Excluding Trainee Dispatched or
Person 145 126
Outsourced Crew) ——Crew
Number of Employees by Age Training Investment for Seafarers in RMB 10000 0.71 1.43
Under 30 (Exclusive) Years Old Person 112 114 Number of Training Sessions for Seafarers Session 385 358
30 to 40 Years Old (Inclusive of 30 Exclusive of 40) Person 134 132 Total Number of Seafarers Trained Person 309 319
40 to 50 Years Old (Inclusive of 40 Exclusive of 50) Person 70 80 Total Participants of Seafarers Trained Training participants 1004 1027
50 Years Old or Above Person 39 42 Total Training Hours for Seafarers Hour 814 1205
By Academic Qualification Average Annual Training Hours per Seafarer Hours/Person 2.63 3.78
5 The number of "Directors Supervisors and Senior Management" disclosed for the 2024 reporting period was 6 (including Supervisors). In 2025 following an optimization Training Coverage Rate for Seafarers % 100 100
of the corporate governance structure the statistical scope was adjusted to "Directors and Senior Management."
105 106Environmental Social and Governance Report 2025 Afterword to the Report
Safety and Health Indexes
Number of Work Safety Accidents Case 0 2
Number of Work-Related Deaths Person 0 0 Shanghai Stock China Corporate
Exchange Listed
Social GRI
Total Number of Work-Related Injuries Person 0 0 Company Self- Responsibility Sustainability
Corresponding Sections Regulatory
Reporting Reporting
Lost Days due to Work-Related Injury Working Days 0 0 Guidelines No. 14 – Guidelines Standards
Sustainability Report
(CASS-ESG 6.0)
Lost Time Injury Rate (per Million Hours) % 0 0 (Trial)
Lost Time Injury Frequency Rate (LTIR per Million Hours) % 0 0 About This Report / P1 2-1/2-2/2-3
Number of Safety Training Sessions Sessions / 356 Message from the Chairman / P2 2-22
Number of Participants in Safety Training Training participants / 1027
About Highton Development / P3 2-6
Number of Participants in Safety Training Person / 319
Key Sustainable Development Performance in 2025 / / /
Total Training Hours Hour 773 1205
Topic: Digital and Intelligent Leadership Smart Shipping
Article 42 S2.1 203-2
Across the Seas
Average Production Safety Training Hours per Employee Hours/Person 2.18 3.78
Governance for Sustainable
Articles 5 9 10-19 51 53 G1.1-G1.3 2-22/2-29/3-1-3-3
Employee Coverage Rate in Safety Training % / 100 Development
Number of Ship-to-Shore Safety Emergency Drills Session 10 7 Corporate Governance Article 53 / 2-9/2-12
Investment in Work Safety in RMB 10000 11072.90 18632.34 I. Sound Party Building and Leadership / / /
Governance and
Compliance as
Percentage of Special Operators Licensed % 100 100 the Foundation Protection of Investors’ Rights and Article 53 / 2-29
Interests
Hull and P&I Insurance Coverage Rate
%100100
(Including Crew Personal Injury) Compliance and Risk Management Articles 12 15 G1.2 207-1/207-2
Investment in Work-Related Injury Insurance in RMB 10000 8.74 11.10 Business Behaviors Articles 54-56 G2.1/G2.2 205-2/205-3/206-1
Contribution to Society Green and Low-Carbon Operation Articles 20-27 34-35 E1.1/E3.1 305-1/305-2/302-1/302-3
Total Public Welfare Input in RMB 10000 6.2 8.10 Strengthening Environmental 304-5/305-6/305-7/
Green and Articles 29-31 33 E2.1/E2.2/E2.4Management 306-1/306-2/307-1
Low-Carbon
Number of Volunteers Participating in Activities Participations / 20 Safeguarding the
Ecosystem Optimizing Resource Utilization Articles 34 36 E3.1/E3.3 303-1/305-4
Total Hours of Volunteer Activities Hour / 40
Biodiversity Conservation Article 32 E2.3 304-2-304-4
107 108Environmental Social and Governance Report 2025 Afterword to the Report
Shanghai Stock
China Corporate Feedback
Exchange Listed
Social GRI
Company Self-
Responsibility Sustainability
Corresponding Sections Regulatory Thank you for reading this report. To improve Highton Development’s performance in environment society and governance
Reporting Reporting
Guidelines No. 14 – further enhance its sustainable development capabilities and levels and strengthen communication with all sectors of society we
Guidelines Standards
Sustainability Report sincerely hope that you will provide valuable feedback and suggestions on our work and report amidst your busy schedule.
(CASS-ESG 6.0)
(Trial)
Comprehensive Digital Intelligence
Article 42 S2.1 203-2
Development Your Information
Digital Name: Tel.: _______________________
Intelligence- Data Security and Privacy Protection Article 48 S3.4 418-1
Driven Unit: Email: _______________________
Collaborative
Value Creation High-Quality Customer Service Article 47 S3.3 416-1/416-2
Multiple Choice (Please check √ in the appropriate box)
Responsible Supply Chain Articles 44-46 S3.1 308-1/414-2
1. Your overall evaluation of Highton Development’s 2025 ESG Report:
Navigation Safety Management Articles 49 50 S4.2 403-1-403-7/403-9/403-10 □ Good □ Average □ Needing Improvement □ I don’t know
Harmony and 2. How do you think Highton Development has performed in terms of customer service
401-1/401-2/404-1/
Safety Creating Protecting Employees’ Rights and
Articles 49 50 S4.1/S4.3 404-2/404-3/406-1/
a Better Future Interests
405-1/407-1/408-1 □ Good □ Average □ Needing Improvement □ I don’t know
Together
3. How do you think Highton Development has performed in terms of green shipping
Contribution to Society Articles 38-40 S1.2 /
□ Good □ Average □ Needing Improvement □ I don’t know
ESG Key Performance Form / A2 / 4. How do you think Highton Development has performed in terms of corporate governance
Afterword to the □ Good □ Average □ Needing Improvement □ I don’t know
Indexes Article 57 A3 /
Report
5. How do you think Highton Development has performed in terms of team building
Feedback / A6 /
□ Good □ Average □ Needing Improvement □ I don’t know
6. How do you think Highton Development has performed in terms of social welfare
□ Good □ Average □ Needing Improvement □ I don’t know
7. How do you think Highton Development has performed in terms of sustainable supply chains
□ Good □ Average □ Needing Improvement □ I don’t know
8. Do you have any other opinions on Highton Development’s sustainable development
_________________________________________________________________
109110新海通
XIN HAI TONG
2025
Fujian Highton Development Co. Ltd. ENVIRONMENTALSOCIAL AND
Address: 42nd floor Shenglong global building (ICC global center)
No. 23 Changting street Ninghua street Taijiang District Fuzhou GOVERNANCE (ESG) REPORT
Tel: 0591-88086357
Website: www.fj-highton.com Fujian Highton Development Co. Ltd.
沪公网安备31011802005267号
