STOCK CODE：001205
ENVIRONMENTAL SOCIAL
AND GOVERNANCE (ESG)
REPORT
Tel: 025-85668787
Fax: 025-85668989
Email: njshhy@njshshipping.com
Address: Building 7 No. 12 Xinglong Road Nanjing Area China (Jiangsu) Pilot Free Trade Zone NANJING SHENGHANG SHIPPING CO. LTD.CONTENTS
SUSTAINABLE DEVELOPMENT
01 21 DEEPENING GREEN SHIPPING 47 ENSURING SHIPPING SAFETY 99Preface GOVERNANCE
ABOUT THIS REPORT 01 SDGs and vision 23 Response to climate change 49 Improving the safety management system 101
COPORATE ADDRESS 03 Sustainable development system 24 Environment management 53 Identifying risks and opportunities 103
SUSTAINABILITY HIGHLIGHTS IN 2024 05 Communication with stakeholders 25 Energy management 65 Build a solid safety risk defense line 104
FOCUSING ON THE SHIPPING OF BULK 07 Materiality issue management 27 Water source management 71 Strengthening safety objective management 108
LIQUID CHEMICAL AND Diverse ecology maintenance 72 Implementing safety management measures 109
STRENGTHENING THE SAFE
TRANSPORTATION CONTROL SYSTEM Circular economy 75
INNOVATING SMART SHIPPING AND 09
STRIVING FOR LEADERSHIP IN STRENGTNENING CORPORATE 31 LEADING INDUSTRIAL VALUE 77 PROTECTING EMPLOYEES' RIGHTS 115
SHIPPING TECHNOLOGY GOVERNANCE AND INTERESTS
EXPANDING GREEN OPPORTUNITIES 10
AND DEVELOPING CLEAN ENERGY
WATERBORNE TRANSPORTATION Three Bodies governance 33 Innovation drive 79 Labor rights and interests management 117
BUSINESS Risk management 36 Customer service improvement 88 Occupational health management 125
Investors' rights and interests 39 Supply chain management 92 Employee training and development 129
Business ethics 42 Data security and privacy protection 96 Harmonious society building 134
About Shenghang Group 11
APPENDICES 135
Company profile 13
Corporate culture 17 Index Table 135
Strategic planning 17 Feedback Form 137
History 18
Glories and recognition 192024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.Preface
Abbreviations
Abbreviation Full name
ABOUT THIS REPORT Shenghang Group the Company we or us NANJING SHENGHANG SHIPPING CO. LTD.STOCK CODE：001205
Shenghang Haoyuan Shenghang Haoyuan (Shenzhen) Shipping Co. Ltd.ENVIRONMENTAL SOCIAL
AND GOVERNANCE (ESG)
REPORT
This is the first Environmental Social and Governance (ESG) Report (hereinafter referred to as "ESG IMO International Maritime Organization
Report" or "this Report") issued by NANJING SHENGHANG SHIPPING CO. LTD. (hereinafter referred to EEXI Energy Efficiency Existing Ship Index
as "Shenghang Group" "the Company" "we" or "us"). This Report provides a detailed disclosure of the
Company's ESG practices and performance for 2024 based on the principles of objectivity EEDI Energy Efficiency Design Index
standardization transparency and comprehensiveness.电话：+86-025-85668787 EEOI Energy Efficiency Operational Indicator
传真：+86-025-85668989
邮箱：njshhy@njshshipping.com
地址：中国（江苏）自由贸易试验区南京片区兴隆路 12 号 7 幢 NANJING SHENGHANG SHIPPING CO. LTD.CII Carbon Intensity Indicator
Administrative Rules of the People's Republic of China for the Safe Operation of Ships and for
NSM Pollution Prevention
Reporting Scope ISM International Management Code for the Safe Operation of Ships and for Pollution Prevention
MARPOL International Convention for the Prevention of Pollution from Ships
Unless otherwise stated the scope of this Report which covers Shenghang Group and its subsidiaries is the same as that of the
Company's annual report. IMDG International Maritime Dangerous Goods Code
DPA Designated Person Ashore
PSC Port State Control
Reporting Period
FSC Flag State Control
The reporting period is from January 1 2024 to December 31 2024 (the "Reporting Period"). To enhance the comparability and SIRE Ship Inspection Report Programme
foresight of this Report some contents are appropriately retrospective to previous years or forward-looking. This Report is issued
on an annual basis consistent with the financial year. USCG United States Coast Guard
Confirmation and approval
Preparation Basis
This Report was approved by the Board of Directors of the Company on April 25 2025 and released together with the annual
Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (for Trial Implementation) report. The Board of Directors commits to supervising the content of this Report and ensuring that it does not contain any false
issued by the Shenzhen Stock Exchange presentations or misleading statements and is responsible for the authenticity accuracy and completeness of the content.Sustainability Reporting Guidelines issued by the Global Reporting Initiative (GRI Standards)
China Corporate Sustainability Reporting Guidelines (CASS-ESG6.0) issued by the China Enterprise Reform and Development Society Access to this Report
Task Force on Climate-related Financial Disclosures (TCFD) Framework
This Report is available for viewing and downloading on the official website of the Company (http://www.njshsh.com) and the
United Nations Sustainable Development Goals (SDGs) website of the Shenzhen Stock Exchange (www.szse.cn).Sustainability Accounting Standards Board (SASB) Standards If you have any feedback or suggestions about our sustainability please feel free to give us your feedback via the contact
details below to help us continually improve this Report.Data Description
Tel: 025-85668787 Email: njshhy@njshshipping.com
The data used in this Report include the original data of the Company's actual operation publicly available government data annual
financial data relevant internal statistical statements and third-party questionnaires. The financial data in this Report are Fax: 025-85668989 Address: Building 7 No. 12 Xinglong Road Nanjing Area China (Jiangsu) Pilot Free Trade Zone
denominated in RMB. In case of any inconsistency with the financial report the financial report shall prevail.
01 022024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
COPORATE ADDRESS Delivering warmth and embracing social responsibility
The development of an enterprise is inseparable from societal support. While enhancing its environmental management capabilities
Shenghang Group remains mindful of its social responsibilities and weaves social value creation into every facet of corporate
development. As a people-oriented enterprise we have established a sound mechanism for protecting the rights and interests of
employees and are committed to creating a safe and comfortable operational environment for employees. We provide rich training and
career development opportunities to help employees realize their personal value and career growth. In terms of serving the society we
focus on vulnerable groups and actively participate in the Port–Party Co-Construction initiative to support rural revitalization. Meanwhile
guided by the customer-centric philosophy we continuously optimize the service process improve the service quality provide customers
with safe high-quality and efficient shipping solutions and collaborate with partners to drive the sustainable development of the
In the wave of global sustainable development the ESG philosophy has gone deep into the core of industrial chain.enterprise development and has become a key criterion to guide the strategic direction of enterprises
and measure the performance of social responsibilities. Shenghang Group has always upheld a high Building a firm foundation for development and improving corporate governance
sense of ESG responsibility has unswervingly practiced the ESG philosophy and is committed to
becoming a model of sustainable development in the industry.While assuming its environmental and social responsibilities Shenghang Group acknowledges that sound corporate governance
serves as the foundation for sustainable development. To this end we have established a sound corporate governance structure
that explicitly defines the responsibilities and authority of each governing body to ensure a scientifically-grounded and impartial
decision-making process. The Board of Directors fully exercised its strategic decision-making and oversight functions and actively
promoted the formulation and implementation of the Company's ESG strategy. The Company has also established a rigorous
internal control and risk management system to strengthen compliance management and ensure that its operations comply with
laws regulations and regulatory requirements. We attach great importance to information disclosure and uphold the principles of
truthfulness accuracy completeness timeliness and fairness in disclosing ESG-related information to investors and the public
thereby enhancing the Company's transparency and credibility.Protecting our blue planet and fulfilling environmental responsibilities
Working together for a shared future and envisioning our vision for development
The shipping industry is closely linked to the natural environment. We are deeply aware that environmental protection is not only
an important requirement for the development of the industry but also our inescapable responsibility. In the process of actively Looking back Shenghang Group has taken solid steps in the ESG practices; looking ahead we are full of confidence and expectations.participating in the shipping industry we have consistently incorporated the concept of environmental protection into every aspect We will continue to deepen our ESG practices and integrate the ESG philosophy into all processes of the Company's strategic planning
of corporate operations. Specifically we actively drive technological upgrading and transformation in ship operations adopt and daily operations. We will increase expenditure on green shipping technology R&D talent training and social responsibility fulfillment
advanced energy-saving equipment and eco-friendly technologies optimize power systems effectively improve energy efficiency pursuing more ambitious sustainability goals. We are confident that through the collective efforts of all Shenghang employees and close
and reduce both carbon and pollutant emissions. In addition all operating ships of the Company are equipped with advanced cooperation with partners across sectors Shenghang Group will achieve even greater sustainable development results and create
anti-pollution equipment as required by regulations and we have established a strict maintenance and dynamic supervision greater social value.mechanism to guarantee the safe and standardized handling of all waste materials and pollutants.NANJING SHENGHANG SHIPPING CO. LTD.General Manager
03 042024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
SUSTAINABILITY HIGHLIGHTS IN 2024
Economic performance Social performance
Operating Revenue Net profit attributable to shareholders of Social performance Up
the parent company
1499612411.64RMB 137151234.79RMB 36.84million RMB 15.59% YoY
Total amount of tax paid Number of R&D personnel Cumulative number of authorized patents
34335339.54RMB 75persons 42
Environmental performance Work safety expenditure
20.07million RMB
Environmental protection expenditure ￥ Photovoltaic power generation
2.95million RMB 39446.37kWh
Carbon emissions reduction Number of environmental pollution accidents
32.38tCO2e 0
05 062024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
FOCUSING ON THE SHIPPING OF BULK LIQUID Technology empowers the construction of safety lines of defense
CHEMICAL AND STRENGTHENING THE SAFE We fully utilize modern information technology to establish an intelligent safety management platform for the fleet.Through the information system we dynamically track the status of ships and provide real-time guidance and
TRANSPORTATION CONTROL SYSTEM monitoring of ship navigation safety equipment troubleshooting and emergency response to ensure safe and stable
ship production and operation.“With more than ten years of rich experience in domestic shipping of bulk liquid chemical Shenghang Group provides
customers with safe and high-quality chemical shipping services through strict shipping management and full use of
modern information technology. The Company attaches great importance to transportation safety risk management and
has established a high-standard and professional transportation safety management and control system. Based on
excellent safety management performance the Company has been recognized as a "Transportation Enterprise with
Grade-A Certification in Work Safety Standardization" by the Ministry of Transport and many ships have been rated as
"safe and trustworthy ships" by the maritime department.Professional operation lays a solid foundation for safety Monitoring platform
The Company attaches great importance to transportation safety risk management. It has established and improved the work Service collaboration creates multi-dimensional value
safety responsibility system for all employees deepened the guiding principle of "Safety First Prevention Priority
Comprehensive Management" and effectively implemented the double prevention mechanism. Dynamic control of safety risks
has been achieved through the implementation of rigorous ship visits red and yellow line warning mechanisms visual By leveraging ship inspections of large petrochemical companies as the starting point for safety management and a
operating procedures lockout/tagout and other standardized processes. high-standard professional safety transportation control system as the cornerstone of customer service we deeply integrate
safety management into the customer service chain. This fosters a mutually reinforcing relationship between safety
management and customer service driving a virtuous cycle of "safety control–service optimization–customer retention."
CNOOC and Shell HSE Audit
Shenghang Group will continue to improve the three-dimensional safety ecology of "human defense + technical defense"
Signing of the safety responsibility letter and lead the high-quality development of bulk liquid chemical shipping with a high-standard safety control system.
0708“2024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.INNOVATING SMART SHIPPING AND EXPANDING GREEN OPPORTUNITIES AND
STRIVING FOR LEADERSHIP IN SHIPPING DEVELOPING CLEAN ENERGY WATERBORNE
TECHNOLOGY TRANSPORTATION BUSINESS“As a technology leader in the field of hazardous chemical shipping Shenghang Group adheres to the core philosophy of “Under the pledged dual goal planning of carbon peaking and carbon neutrality green ammonia will continue to
"innovation drives safety technology empowers the future" and has built a digital technology matrix covering the entire
be promoted and applied. Shenghang Group actively explores the field of green and clean energy and takes the
business chain. Since winning the national high-tech enterprise certification in 2017 the Company has continued to increase
lead in the development of clean energy waterborne transportation business. In August 2024 the Company's
R&D expenditure and has created a patent technology cluster comprising 42 patents with fully independent intellectual
newbuild semi-ref LPG/NH3/VCM gas carrier "SHENG HANG YONG LE" was officially put into operation. It is mainly
property. The Company has maintained the national high-tech enterprise certification for 8 consecutive years and is one of
engaged in the waterborne transportation of clean energy liquid ammonia with a total capacity of 4626 DWT
the few liquid chemical shipping enterprises to win this honor. It has successively obtained the national certification as a
(approximately 5546.80CBM). It is the first Chinese flag semi-refrigerated LPG/NH3/VCM gas carrier that has
"Specialized Refined Unique and Innovative" (SRUI) "Little Giant" enterprise been recognized as a Jiangsu provincial SRUI
achieved EEDI Phase III fulfillment in advance. It is designed following international unlimited navigation and has
small and medium-sized enterprise and earned the honors of Jiangsu Provincial Enterprise Technology Center and Nanjing
the full ability to fulfill domestic and international trade requirements. The minimum designed temperature of its
Municipal Innovation Studio.cargo is minus 48 Celsius degree and the maximum allowable tank pressure is 5 bar. The cargo tanks is made of
low-temperature carbon manganese steel and be insulated with polyurethane spray foam. It is fitted with
technically advanced low-temperature oil-free cargo compressor units including the reliquefication system. The
ship is able to provide the fitness of not only low-temperature cargo such as ammonia propylene propane and
butadiene but also those ambient-temperature cargoes. The high cargo adaptability and operational flexibility can
very much effectively meet the multi-complex demands of customers regarding high-end liquefied gas carriers.Certificates of honors
By deeply integrating core scenarios such as intelligent shipping management safety dynamic monitoring and low-carbon
path optimization the Company has built an innovative full-stack self-developed system and developed an independent and
controllable technical architecture. On this basis the Company has successfully built a smart shipping platform integrating
order and contract management ship scheduling cargo supervision safe navigation emergency response and other
functions. Relying on the triple-layer technical architecture of the Internet of Things perception layer intelligent
decision-making center and full integration of application data the platform realizes full lifecycle management and fully Waterborne clean energy transportation
demonstrates the responsibility of a technology-based shipping enterprise to protect the blue artery with innovation and drive
the sustainable development of the industry.
0910““2024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.Company profile 13 Glories and recognition 19
Corporate culture 17
Strategic planning 17 About Shenghang Group
History 18
11 122024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Company overview
International trade route
Company profile
NANJING SHENGHANG SHIPPING CO. LTD. founded on November 7 1994 was listed on the Shenzhen Stock Exchange on May
13 2021 (stock for short: Shenghang Group; stock code: 001205). Specializing in the hazardous chemical shipping sector we
provide supporting logistics services for large chemical enterprises. Our core business covers the shipping of liquid chemicals
liquefied petroleum gas (LPG) and refined oil products across international routes China's coastal waters and the Yangtze River's
middle and lower reaches positioning us among China's foremost liquid chemical shipping enterprises.Distribution of transportation routes
The Company has established a
transportation network comprising 36 Coastal trade route
major coastal ports and over 20
Yangtze River and Pearl River ports as
logistics nodes with the
Wuhan–Shanghai Yangtze River route
serving as the horizontal axis and the
Bohai Bay–Hainan coastal route as the
vertical axis. This network covers
China's major chemical production
bases including Bohai Bay Yangtze
River Delta Pearl River Delta and
Beibu Gulf. With the development of
its international hazardous chemical
transportation business the Company
takes advantage of its own strengths Legend
and vigorously enters the foreign trade
market. At present its shipping routes
have formed a transportation network
centered on Singapore covering
Southeast Asia Northeast Asia India
and other regions.
13 142024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
The Company's capacity
Capacity put into operation in 2024
The Company operates a diversified fleet ranging from 2000 to 27500 tons. As of the end of the Reporting Period according to
the types of ships recorded in the Company's ship registration certificates the Company (including its subsidiaries) controlled a
total of 52 domestic and foreign trade ships with a total capacity of 405000 DWT including 33 domestic chemical ships with a
total capacity of 210000 DWT; 13 refined oil ships with a total capacity of 130700 DWT; and 5 foreign trade chemical ships with
a total capacity of 59700 DWT and 1 liquefied gas ship with a total capacity of 4626 DWT (5546.80 cubic meters). The Company
and its subsidiaries have 5 other ships under construction with a total capacity of 46700 DWT.Quantity of ships 52 ships Total capacity 405000DWT
5 1ships 4626 DWTships 59700DWT SHENG HANG HUA 17 SHENG HANG 009
13ships
33 130800 210000ships DWT DWT
Domestic trade Foreign trade Domestic trade Foreign trade SHENG HANG TIAO ZHAN SHENG HANG YONG LE
chemical tanker chemical tanker chemical tanker chemical tanker
Product oil tanker Liquefied gas carrier Product oil tanker Liquefied gas carrier
52
Quantity of ships 40.50
Capacity 40
29.88
30 SHENG HANG HUA 16 SHENG HANG HUA 18
20.10
22
1717
10.6714.37
13
7.651110.61
6.79
20172018201920202021202220232024
Quantity and capacity of ships of the Company in 2017-2024 SHENG HANG GUANG MING SHENG YOU 233
15 162024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Corporate culture History
Integrity drives prosperity faith ensures sustainability
Values
Utmost sincerity and integrity are the key to our prosperity in business. Good faith and belief pave the 1994
way to our sustainable development * Nanjing Shenghang Shipping
Co. LTD was established.Mission Vision
To provide quality service to customers To be a trustworthy and influential new 2014
maximize the value of customers logistics chain enterprise group * The Company completed the
shareholders employees and enterprises world-wide joint-stock reform and was renamed
2021 NANJING SHENGHANG SHIPPING CO. LTD.
Safety management philosophy Service philosophy
* The Company was listed on the
All incidents can be prevented and More professional and thoughtful faster Shenzhen Stock Exchange.safety is obviously valuable and safer
2023
* The Company completed the
Talent philosophy Business philosophy issuance and listing of convertible
corporate bonds.Making the best possible use of people Integrous safe environment-friendly
and talents being made good use pragmatic efficient and innovative 2024
* By acquiring a controlling stake in
Development philosophy Shenghang Haoyuan the Company
has further enhanced its market
Interior continuity exterior extension share and core competitiveness in
deep exploiting and wide cultivation China's coastal and inter-provincial
refined oil and chemical
transportation markets;
Strategic planning * The Company was granted the
Operating License for Liquefied Gas
The Company firmly adheres to its long-term strategic development plan. With the domestic chemical waterway transportation Carrier Transportation
business as its core business the Company gradually expands its capacity scale through new capacity applications and the
purchase of market stock ships deepens customer cooperation and strengthens market development. In addition the Company
is actively shaping its international hazardous chemical waterway transportation business and continuously improving its core
competitiveness. Through these initiatives we strive to develop into a new logistics chain enterprise group with global influence.Focus on the field of bulk bulk liquid Continuously promote international liquid
chemical transportation and enhance the chemicals business and expand LPG
Company's core competitiveness waterway transportation business
17 182024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Glories and recognition
January 2024 April 2024 May 2024 December 2024
Advanced Enterprise of Safety Vice President Unit of the Third Top Water Transportation Service Member of the Northeast
Management in Transport Industry of Council of the Jiangsu Seafarer Enterprise in Chemical Logistics Industry Asia Green Ship Fuel Supply
Nanjing Jiangbei New Area in 2023 Service Association in 2023-2024 Chain Alliance
Nanjing Jiangbei New Area China Federation of Logistics & Purchasing Northeast Asia Green Ship Fuel
Jiangsu Seafarer Service Association
Transportation Administration Center Hazardous Chemicals Logistics Sub-branch Supply Chain Alliance
February 2024 November 2024
Advanced Unit in the "Fire Safety Management Enterprise in
Safety Cup" Activity in 2023 Chemical Logistics Industry in 2024
Nanjing Branch of the Yangtze River China Federation of
Shipping Public Security Bureau Logistics & Purchasing
March 2024 July 2024
Vice President Unit of the Sixth
Credit Rating in 2023 (3A) Council of the Jiangsu
Shipowners Association
Jiangsu Shipowners Association
January 2024 Nanjing Transport Bureau
Strategic Cooperation Service
Provider of Zhejiang Rongsheng
Holding Group in 2023
Zhejiang Rongsheng Holding Group
Co. Ltd.
19 202024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
SDGs and vision 23
Sustainable development system 24
Communication with stakeholders 25 Sustainable Development
Materiality issue management 27
Governance
21 222024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
SDGs and vision Sustainable development system
Shenghang Group actively implements the new philosophy of innovative coordinated green open and shared development. Shenghang Group has integrated sustainable development into the overall governance structure establishing a sustainable
Aligned with carbon peaking and neutrality goals we adhere to green and low-carbon shipping transformation integrating this development management structure consisting of the Board of Directors the Strategy and Sustainable Development Committee
philosophy throughout our corporate development. We continuously advance ESG initiatives and drive high-quality development under the Board of Directors and the ESG Management Leading Group. We have formulated the ESG Management System and
through efforts and practices in standardized operation compliance development green innovation work safety intelligent the Working Rules of the Strategy and Sustainable Development Committee under the Board of Directors clarifying the working
shipping and talent training. rules at all levels and integrated ESG concepts and requirements into the Company's risk management and decision-making
processes. In the process of strategy implementation risk management and major decision-making we shall take into full account
ESG-related impacts risks and opportunities and shall strengthen our control over non-financial risks.Governing body Duties
Sustainable Development Governance Protecting employees' rights and interests
Leading industrial value Harmonious society building
Sustainable Development Governance * Review and approve the Company's strategic ESG planning and plans;
Leading industrial value
Strengthening corporate governance * Review and approve the ESG governance structure and important ESG systems;
* Review and approve the Company's ESG-related information disclosure reports;
Deepening green shipping Ensuring shipping safety Board of * Review and approve the public disclosure of material information related to the Company's
Directors ESG governance;
Protecting employees'
rights and interests * Review response plans for ESG-related risks that have a material impact on the Company
and material adverse ESG events.Deepening green shipping
* Research and make recommendations on the Company's long-term development strategy;
* Identify the Company's sustainable development-related risks and opportunities conduct
SDGs research analysis and risk assessment on ESG-related matters guide and supervise the
formulation and implementation of ESG systems and goals and provide decision-making
consulting advice;
Protecting employees'
Deepening green shipping rights and interests * Organize and coordinate the supervision and inspection of the Company's ESG-related
Strategy and policies management performance and target progress and make recommendations;
Sustainable
Development * Review the Company's ESG management strategies risks implementation etc. and make
Deepening green shipping Committee recommendations;
Deepening green shipping
* Study other major issues affecting the Company's development and make
Deepening green shipping recommendations;
Deepening green shipping
* Handle other matters authorized by the Board of Directors.Protecting employees' rights and interests Protecting employees' rights and interests
Harmonious society building Leading industrial value * Formulate strategic plans and related institutional policies build management and
indicator systems and conduct information disclosure;
* Implement ESG strategies and responsibilities communicate with stakeholders regularly
ESG
Management and identify material topics;
Leading Group
* Continuously focus on ESG development trends and policy developments organize the
relevant training and implement other matters required by the board's special committees.Response to SDGs
23 242024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
ESG training Case
Stakeholder category Expectations and demands Communication methods and channels
The Company hires external experts to provide ESG training for the Company's management and various departments
including the ESG philosophy interpretation of ESG-related policies interpretation of ESG standards and key points in
the preparation of ESG reports so as to strengthen the understanding of ESG by the Company's management and
various departments and improve the professional skills and level of all employees. Performance growth General Meeting of Shareholders
Sustainable development
Shareholders (investors) Periodic announcement
Protection of shareholders' rights
Performance roadshow
and interests
Government/regulatory Compliance operation Information disclosure
authorities Risk management Surveys and symposiums
Exchange ESG training ESG training ESG Kick-off meeting
Employee rights and interests
Workers' congress
Employees Training and education
Trade union
Employee care
Partners Win-win cooperation Communication summit
Quality services Public mailbox
Customers Safety assurance Information bulletin
Increased efficiency Customer satisfaction survey
Common development
Suppliers Compliance with business ethics
Anti-unfair competition
Communication with stakeholders
Public welfare activities
Community organizations Public welfare and charity
Shenghang Group always attaches great importance to communication with all stakeholders actively builds regular communication Community communication and exchange
channels uses diversified communication methods to quickly capture the expectations and demands of all parties and gives
professional responses to steadily improve the Company's sustainable development.
25 262024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Material topic management
Assessment process and method
By reference to the assessment methods set out in domestic and foreign disclosure standards such as the Self-Regulatory
Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (for Trial Implementation) and the GRI
3：Material Topics and in combination with its own development strategy the Company introduces the dual assessment
perspectives of impact materiality and financial materiality carries out questionnaire surveys and has in-depth insight into the
needs of stakeholders to identify and assess materiality topics.Topic assessment Analyze the Company Establish a Assess topic Topic process background topic database materiality confirmation
Assessment of impact materiality
Sort out the potential or actual positive or negative impacts of
Analyze the macro environment of each topic on the external environment society and economy
global trends and China's industrial and conduct stakeholder research and analysis in the form of Develop a list of topics of
development trends from political Establish a database of sustainable questionnaires in the form of questionnaires with 194 impact materiality and
economic and social perspectives; development-related topics by questionnaires collected. financial materiality and
Analytical method identify the impact risks and reference to the Global Reporting ensure the transparent
opportunities faced by the Initiative (GRI) the United Nations balanced and complete
Company's stakeholders and the SDGs SASB and related topics in the Assessment of financial materiality disclosure of relevant
Company based on the industry same industry at home and abroad. topics in the report.development trend and the Identify and assess the risks and opportunities under the relevant
Company's business model. topics and identify the topics with financial materiality through
the analysis of influence dependence and other factors and in
combination with the questionnaire results expert judgment and
the risk identification and assessment list of each department of
the Company.
27 282024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Topic assessment results
Shenghang Group's Topic Matrix Materiality
High description Topic
Dual materiality Response to climate change energy utilization pollutant emission biodiversity conservation
occupational health and safety and shipping safety assurance
19
212311113
20 39 6 Environment compliance management water resources utilization waste disposal protection of
employees' legitimate rights and interests employee training and development protection of
24
22 10 8 Impact customers' rights and interests innovation drive information security and privacy protection
materiality responsible supply chain standardization of corporate governance protection of shareholders'
25 7 14 2 rights and interests risk management anti-commercial bribery and anti-corruption ESG
governance and tax compliance
51512
26
164
Circular economy social contribution rural revitalization stakeholder communication and
Relevance
17 anti-unfair competition
18
Low Impact on the Company's finance High Not applicable topic Description
The Company's business scope does not involve scientific research technology
Science and
1 Environment compliance management Protection of employees' Protection of shareholders'
development and other activities in ethically sensitive areas of science and technology
9 legitimate rights and interests 19 rights and interests technology ethics such as life sciences and artificial intelligence and this topic is not applicable to the
2 Energy utilization 10 Employee training and development 20 Standardization of corporate Company.governance
3 Response to climate change 11 OHS
21 Anti-commercial bribery
4 Circular economy 12 Innovation drive and corruption
5 Water resource utilization 13 Shipping safety assurance
22 Anti-unfair competition
6 Pollutant emission 14 Customer rights protection 23 Tax compliance The disclosure of this topic is applicable to enterprises with the balance of accounts
payable (including notes payable) exceeding RMB30 billion or accounting for more
7 Waste disposal 15 Information security and privacy protection 24 Risk management than 50% of total assets at the end of the Reporting Period; This topic is not applicable Equal treatment of SMEs
to enterprises that disclose overdue payments to SMEs through the National Enterprise
8 Biodiversity conservation 16 Responsible supply chain 25 Communication with Credit Information Publicity System either by themselves or through their controlling stakeholders
17 Social contribution subsidiaries.
26 ESG governance
18 Rural revitalization
2930
Materiality of economic environmental and social impacts2024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.Three Bodies governance 33
Risk management 36 STRENGTHENING
Investors' rights and interests 39
Business ethics 42 CORPORATE GOVERNANCE
31 322024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Three Bodies governance
Key performance
In order to establish and improve a scientific standardized and effective governance system Shenghang Group strictly abides by
the Company Law of the People's Republic of China the Securities Law of the People's Republic of China the Code for Governance During the Reporting Period:
of Listed Companies and the relevant laws and regulations and continues to improve and optimize its management systems and
management structure. During the Reporting Period the Company revised the Articles of Association of NANJING SHENGHANG The General Meetings of Shareholders held 7 meetings，with a total of 24 proposals reviewed and adopted.SHIPPING CO. LTD. and the Rules of Procedure of the General Meeting of Shareholders of NANJING SHENGHANG SHIPPING CO.LTD. and other governance systems and formulated the governance systems including the ESG Management System of NANJING The Board of Directors held 18 meetings and reviewed and adopted a total of 56 proposals with the full
SHENGHANG SHIPPING CO. LTD. the Public Opinion Management System of NANJING SHENGHANG SHIPPING CO. LTD. and attendance of all required directors.the External Donation Management System of NANJING SHENGHANG SHIPPING CO. LTD. in accordance with the latest provisions
of the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange the Self-Regulatory Guidelines No. 1 for Companies The Board of Supervisors held 13 meetings and reviewed and adopted a total of 32 proposals with the full
Listed on Shenzhen Stock Exchange—Standardized Operation of Main Board Listed Companies and other relevant laws and attendance of all required supervisors.regulations and normative documents and in combination with the actual situation of the Company.General Meeting of Shareholders
Board of Supervisors
Strategy and Sustainable Development Committee General Meeting of Shareholders
Board of Directors Audit Committee As the Company's highest authority the General Meeting of Shareholders shall be convened by Shenghang Group in strict
Compensation and Appraisal Committee accordance with the relevant laws administrative regulations the Rules of Procedure of the General Meeting of Shareholders of
NANJING SHENGHANG SHIPPING CO. LTD. and the Articles of Association of NANJING SHENGHANG SHIPPING CO. LTD. to
Nominations Committee
General Manager ensure that the shareholders can exercise their rights in accordance with the law. The Company fully guarantees the rights of all
shareholders to know participate and make decisions. When the General Meeting of Shareholders reviews major matters affecting
the interests of small and medium-sized investors the votes of small and medium-sized investors shall be counted separately and
the results of the separate counting shall be disclosed in a timely manner.Secretary of Vice-General Vice-General Vice-General Vice-General Chief Financial
the Board Manager Manager Manager Manager (Risk Officer (CFO)
(Investment) (Operation) (Administration) Control) Board of Directors
The Board of Directors is the Company's operating decision-maker and is responsible to the General Meeting of Shareholders.Shenghang Group shall in accordance with the Articles of Association of NANJING SHENGHANG SHIPPING CO. LTD. the Rules of
Procedure of the Board of Directors of NANJING SHENGHANG SHIPPING CO. LTD. the Work System of Independent Directors of
NANJING SHENGHANG SHIPPING CO. LTD. and other systems standardize the discussion and decision-making procedures of the
Board of Directors urge directors to earnestly perform their duties strengthen the restriction and supervision mechanism for
internal directors and management protect the interests of minority shareholders and creditors and improve the decision-making
fairness and scientificity.Key performance
The Company has 8 directors including 3 independent directors accounting for 37.5%; and 2 female
directors accounting for 25%.Wholly-owned subsidiaries Holding companies and joint-stock companies
Shenghang Group's organizational structure
3334
Risk Control Department
Crew Assets Department
Human Resource Department
Financial Department
Marketing Department
General Administration Department
Research Center
Operation Department
Crew Department
Procurement Department
Technical Department
Marine Department
Safety Supervision Department
Securities Investment Department2024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.The Board of Directors has the Audit
Committee the Strategy and Committee Number of meetings Risk management
Sustainable Development Committee
the Compensation and Appraisal Audit Committee 15
Committee and the Nominations
Committee all of which perform their Strategy and Sustainable Development Committee 9
duties in accordance with the relevant Risk management system
regulations. Compensation and Appraisal Committee 3
Shenghang Group attaches great importance to the development of the risk compliance governance system. With risk
Nominations Committee 2 management at the core it has formulated the Risk Management Measures and established a risk management mechanism with
unified leadership division of responsibilities and participation by all and improve the level of operation and management
ensuring the compliance of business operations and maintain the level of risk management. The Board of Directors of the Company
gives full play to the function of risk prevention and control and subordinate entities departments of the headquarters and Risk
Control Department form the "three lines of defense" for risk management.Board of Supervisors
Shenghang Group elects supervisors in strict compliance with the selection and appointment procedures stipulated in the First line
Company Law of the People's Republic of China and the Articles of Association of NANJING SHENGHANG SHIPPING CO. LTD. All
supervisors shall conscientiously perform their duties and supervise the major matters and financial status of the Company and Responsible body:Subordinate entities
the legality and compliance of the duty performance by directors and senior officers. Duties：* Formulate and continuously improve risk management systems and internal control management;
The Board of Supervisors of the Company consists of 3 supervisors including 2 non-employee representative supervisors and 1 * Proactively carry out risk identification and hidden hazard screening promptly handle risk information and
employee representative supervisor. During the Reporting Period the convening procedures qualifications of participants and ensure proper reporting and response;
voting procedures of the Board of Supervisors complied with the relevant regulations.* Perform risk management duties participate in each stage of work and submit the relevant information as
required by the Company and superiors.Management of the compensation of directors
supervisors and senior officers Second line
Responsible body:Departments of the headquarters
In order to drive performance growth mobilize the enthusiasm of directors supervisors and senior officers and continuously Duties：* Improve business management systems and processes;
promote the standardized operation and improve the governance level of the Company during the Reporting Period Shenghang
*
Group reviewed and approved the Proposal on Determining the Compensation of Directors and Senior Officers of the Company in Collect major risk information managed by the respective department and line;
2024 and the Proposal on Determining the Compensation of Supervisors of the Company in 2024. An annual compensation system * Provide support guidance and oversight to all units in handling risks in their own areas and promptly
was implemented for non-independent directors supervisors and senior officers in combination with the duties and importance
* initiate emergency response plans based on risk changes;
of the position and by reference to the compensation levels of other relevant enterprises and the relevant positions in the same
industry and was linked to their actual performance in the Company's assessment and the base salary was paid on a monthly Set a full-time or part-time risk management coordinator position within the department to be responsible
basis; an allowance system was implemented for the independent directors and disclosed publicly. for coordinating the specific risk management work of the department and line.Third line
Responsible body:Risk Control Department
Duties：* Formulate basic risk management systems and supervise the implementation of risk management;
* Guide and supervise all subordinate entities and departments of the headquarters to carry out risk
identification investigation and early warning study major risk response plans comprehensively assess
risk disposal results and make improvement suggestions.
35 362024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Internal control audit
Risk culture cultivation
The Company strictly abides by the Guidelines for Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock
Exchange—Standardized Operation of Main Board Listed Companies the Audit Law of the People's Republic of China and other The Company strives to cultivate a compliance culture improve employees' risk awareness revise and improve the Employee
laws and regulations continuously improves the internal control governance systems and audit supervision mechanisms and Handbook (Shore-based) and Regulations on Rewards and Punishments for Employees Regulations on Rewards and Punishments
actively promotes the integrated management of internal control audits. We develop audit plans based on the Audit Management in the Employee Handbook (Crew) and other internal risk control systems and carry out publicity through regular morning
System carry out internal supervision and audits through the Risk Control Department and have established an audit reporting meetings and training to ensure the effective implementation of the systems.mechanism to ensure full-process risk control across all business activities. Meanwhile the Company focuses on the publicity and
implementation of various systems ensures the effective implementation of management systems and control requirements
through special meetings training inspections and other means and improves the efficiency of internal audit supervision.In 2024 the Company conducted a self-assessment of internal control and implemented special audit. After the self-assessment
inspection and supervision of internal control the procurement contract and the ship repair contract were revised and improved.During the Reporting Period there is no major internal control defects and related accountability events.Key performance
During the Reporting Period the Company completed a total of 15 internal audits including 9 internal audits of
the Company and 6 departmental audits; the Company issued 15 copies of supervision and audit reports and
the rectification rate of key issues reached 100%.Quarterly work report of the Risk Control Department Internal audit training
Carry out a ship repair audit to promote cost reduction and efficiency improvement Case
Shenghang Group continues to deepen the full-cycle risk control management of ship maintenance business. In 2024 the Key performance
Company's Risk Control Department fully led and coordinated third-party professional institutions to launch a special audit
on the Company's ship repair settlement matters. During the audit process the internal audit team prioritized contractual
compliance built a standardized audit verification model by systematically sorting out multi-dimensional information such
as settlement lists technical acceptance documents and market price comparison data and strengthened the look-through
verification of the cost composition of maintenance projects. In response to the common overestimation and reckoning risks During the Reporting Period the Company conducted a total
in the industry the Company pioneered the "audit reduction accountability traceability mechanism" and set a stepped
constraint clause for the repair party: when the reduction ratio exceeds the preset threshold the audit cost corresponding of 6 internal risk training sessions with a total of 18
to the excess reduction shall be borne by the responsible party and market means shall be adopted to enforce contractual
trainees and a total training duration of 5.4 hours..compliance. Through the organic combination of pre-risk prevention and control and back-end closed-loop management
this special work significantly improved the compliance quality and efficiency of maintenance business operation
systematically promoted the implementation of enterprise cost reduction and efficiency improvement goals and highlighted
the advanced empowerment of the internal review system from business supervision to value creation.Dissemination of the risk management system
37 382024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Tax risk management
*Announcements including periodic reports and interim announcements *Roadshow
The Company resolutely implements the relevant national and local tax laws and regulations and formulates and improves its
tax management rules and regulations in combination with its actual situation. The Company sets up special tax management *General Meeting of Shareholders *Telephone consultation
positions clearly defining their responsibilities and authority with full delegation and conducts regular professional training
in accounting and tax practices to enhance team competency. Meanwhile according to the characteristics of tax types and
its business characteristics the Company has developed the tax treatment process of economic business and effective risk *Analyst meeting *Performance briefing
management and control strategies to create a good tax environment.*Site visit *One-to-one communication
Special training of the Financial Department Case Communi- *Questionnaire *Company website
cation
methods
In 2024 the Financial Department *Media interviews and reports *Mailing materials
of Shenghang Group held a total of
7 special issues in 18 training
sessions for the Company and its *Advertising or other promotional materials *Other methods
subsidiaries covering personal
financial management capabilities
tax management business analysis
and software applications.Investors' rights and interests
Investor relations management
Shenghang Group attaches great importance to investor relations. In
accordance with the Company Law of the People's Republic of China
the Securities Law of the People's Republic of China the Guidelines for
the Management of Investor Relations of Listed Companies and other
relevant laws regulations and normative documents and in
combination with the actual situation of the Company the Investor
Relations Management System of NANJING SHENGHANG SHIPPING
CO. LTD. has been formulated. Adhering to the principles of Investor exchange meeting Performance briefing
compliance equality and initiative the Company has built rich and
diversified communication channels actively communicated with
investors and responded to them in a timely manner.
39 402024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Return to shareholders Management of related party transactions
The Company has reasonably formulated its annual profit distribution plan based on its overall operating conditions and in
combination with its future development strategy and cash expenditure arrangements in strict accordance with the relevant The Company has formulated the Decision-making System for Related Party Transactions of NANJING SHENGHANG SHIPPING CO.provisions on profit distribution especially cash dividends in the No.3 Guideline for the Supervision of Listed Companies—Cash LTD. in accordance with the Company Law of the People's Republic of China the Securities Law of the People's Republic of China
Dividend Distribution of Listed Companies and the CSRC's Further Regulations on Shareholding Reductions as well as the relevant the Self-Regulatory Guidelines No. 7 for Companies Listed on Shenzhen Stock Exchange—Transactions and Related Party
content of the Articles of Association and the Shareholder Dividend Return Plan for the Next Three Years (2023–2025) of NANJING Transactions the Accounting Standards for Business Enterprises No. 36—Disclosure of Related Parties and other relevant laws and
SHENGHANG SHIPPING CO. LTD. After accounting the cumulative amount of cash dividends issued by the Company in the past regulations normative documents and the Articles of Association of NANJING SHENGHANG SHIPPING CO. LTD. and in
three years is not less than 30% of the average annual net profit of the past three years. Meanwhile the profit distributed in cash combination with the actual situation of the Company.by the Company in a single year is not less than 10% of the distributable profit realized in the current year which effectively During the meetings of the Board of Directors and the General Meeting of Shareholders the Company has always adhered to a
guarantees the reasonable return on investment of shareholders and conforms to the relevant profit distribution guidelines and the rigorous attitude and strictly implemented the requirements for avoidance of voting. When a director of the Company has an
Company's established dividend plan. interest in a resolution of the Board of Directors or a shareholder has an interest in a resolution of the General Meeting of
Shareholders in order to effectively safeguard the legitimate rights and interests of minority shareholders the director and the
Proposed Total cumulative shareholder and his/its agent will consciously abide by the regulations and will not exercise their voting rights on the resolution.Indicator Unit 2022 2023 dividends cash dividends from
for 2024 2022 to 2024
Cash dividends
million RMB 17.09 19.90 22.25
(including tax)
59.24 Business ethics
Net profit attributable to
shareholders of the million RMB 169.08 182.06 137.15
parent company The Company regards integrity and compliance as the lifeline of corporate development abides by the Criminal Law of the People's
Republic of China the Anti-Unfair Competition Law of the People's Republic of China and anti-commercial bribery and other
regulatory requirements attaches importance to developing and maintaining a good market environment with fair competition and
Information disclosure strictly prohibits unreasonable restrictions on partners or unreasonable differential treatment of customers. Taking transparent
operation as the starting point the Company continues to improve the business ethics constraint mechanism of the whole chain
and is committed to shaping the image of a world-class energy transportation service enterprise with integrity and transparency.In order to standardize the information disclosure behavior ensure the authenticity
accuracy completeness and timeliness of the Company's information disclosure and
effectively protect the legitimate rights and interests of the Company shareholders During the Reporting
and investors the Company has formulated the Information Disclosure Management Period the Company has
System of NANJING SHENGHANG SHIPPING CO. LTD. in accordance with the received the highest
Company Law of the People's Republic of China the Securities Law of the People's information disclosure Key performance
Republic of China the Administrative Measures for Information Disclosure of Listed rating from Shenzhen
Companies the Code of Corporate Governance of Listed Companies the Rules Stock Exchange of Grand During the Reporting Period the Company did not receive any lawsuit against the Company
Governing the Listing of Stocks on Shenzhen Stock Exchange the Self-Regulatory
Guidelines No. 5 for Companies Listed on Shenzhen Stock Exchange—Information related to commercial bribery corruption and unfair competition.Disclosure Affairs Management and other relevant laws regulations normative A
documents and the Articles of Association of NANJING SHENGHANG SHIPPING CO.LTD. to actively perform the information disclosure obligations.Shenghang Group always adheres to the principle of "true accurate complete
timely and fair" information disclosure and continuously improves the quality of
information disclosure standardized operation and corporate governance. The Anti-commercial bribery management
Company has received the highest disclosure rating of "A" for two consecutive years
in 2022–2023 and 2023–2024 which fully reflects the regulators' recognition of the The Company has established and continuously improved the
Company's work in information disclosure standardized operations and investor anti-commercial bribery management system integrated the anti-commercial
relations management. bribery work into the overall compliance management framework and
formulated the Anti-Commercial Bribery Management Manual. By appointing
the Chief Anti-Commercial Bribery Compliance Officer to head the Risk
Key performance
Control Department in the Company's anti-commercial bribery supervision
and management the Company has developed an anti-commercial bribery
During the Reporting Period the Company disclosed 6 regular reports and 286 interim reports. coordination mechanism. During the Reporting Period the Company drafted
the Anti-Commercial Bribery Management Measures to strengthen the code
of conduct and standards for employees.
41 422024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Administrative organization Main responsibilities
Key performance
Board of Promote the establishment and improvement of the Company's anti-commercial The signing rate of the Integrity Commitment is The signing rate of the Integrity Practice Agreement is
Directors/ bribery management system approve the anti-commercial bribe management system
Management and supervise its implementation. 100% 100%
Formulate the Company's anti-commercial bribery-related systems work plans
and implementation plans urge the relevant departments to implement the
Risk Control Department anti-commercial bribes implementation plans coordinate anti-commercial
bribe training and investigate and handle commercial bribery.Business ethics training Case
Implement the Company's anti-commercial bribery management system
Departments identify commercial bribery risks formulate prevention and control In order to further strengthen the integrity and integrity development of the Company the Risk Control Department
measures and implement the anti-commercial bribe implementation plan. of the Company organized an anti-corruption publicity and implementation meeting on December 2 2024 to
educate employees on anti-commercial bribery and enhance their awareness of anti-commercial bribes.Integrity risk prevention and control
Specific measures
* The Board of Directors/management makes an anti-commercial bribery commitment at
the Company level;
* Important personnel above the level of Company managers shall sign the Integrity
Commitment and all employees shall sign the Integrity Practice Agreement;
* Carry out integrity risk identification in important business areas assess the manifestation
of commercial bribery risks the possibility of risk occurrence and the degree of impact
Internal control and formulate risk prevention and control measures;
* Incorporate integrity into performance appraisals;
* Anti-commercial bribery training shall be organized at least once a year.Training on anti-commercial bribery and anti-corruption
Indicator Unit 2024
* Conduct anti-commercial bribery due diligence on new business partners;
* Organize suppliers and brokers to sign the Anti-Commercial Bribery Commitment; Total number of training sessions Session 1
* Establish a "commercial bribery blacklist" of customers and suppliers;
Total training duration Hour 6.75
External * Incorporate anti-commercial bribery clauses into bidding documents and business
management contracts;
Proportion of employees participating in training % 20.93
* Carry out anti-commercial bribery publicity and communication.Note: The statistical scope of the proportion of employees participating in training covers shore-based employees of Shenghang Group.
43 442024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Anti-commercial bribery reporting mechanism Anti-unfair competition and anti-money laundering
The Company has established a strict and effective anti-commercial bribery reporting mechanism to encourage employees The Company strictly abides by the Anti-Monopoly Law of the People's Republic of China the Anti-Unfair Competition Law of the
partners third parties and social persons to report the commercial bribery of the Company and its affiliates by telephone letter People's Republic of China and the Anti-Money Laundering Law of the People's Republic of China and other relevant laws and
e-mail or directly to the relevant acceptance department and provide the relevant evidence. The Company undertakes to keep the regulations treats market entities equally and is committed to promoting the development of a free market and maintaining a
personal information of the reporter and the content of the report strictly confidential and it is strictly forbidden for the relevant good competition order; Employees are strictly prohibited from participating in money laundering schemes and deliberately and
investigators to disclose the name identity and any other information of the reporter to anyone. illegally evading tax obligations. Meanwhile the Company actively strengthens risk control capacity building and management
carries out all-round internal and external publicity and training firmly promotes compliance construction and comprehensively
improves the prevention and control level of anti-unfair competition anti-monopoly and anti-money laundering related risks.Report acceptance department: Risk Control Department of NANJING SHENGHANG SHIPPING CO. LTD.Reporting Address: Building 7 No. 12 Xinglong Road Nanjing Area China (Jiangsu) Pilot Free Trade Zone
channels
Reporting hotline: 025-85668800 Supervision email: njshhy@njshshipping.com
Anti-unfair competition training
45 462024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
04 Response to climate change 49 Circular economy 75Environment management 53Energy management 65 DEEPENING GREEN Water source management 71
Diverse ecology maintenance 72 SHIPPING
47 482024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Probability Affected Description of
Response to climate change Type of risk Risk description of occur- time potential Coping strategyrence range financial impact
*Strengthen cooperation with
Application and transformation of
scientific research institutions and
new energy technologies: As the
Increase in R&D equipment suppliers to gradually
shipping industry transitions to new
Medium to expenditure promote green shipping technology Techni- energy companies adopting new
Low transformation.Governance structure cal risk energy or energy-saving technolo- long term Increase in operating gies may face problems with expenses *Cultivate internal technical talents
adaptation operational efficiency and enhance technical application
and cost.In the process of coping with climate change the Company attaches great importance to the relevant work and by reference to and maintenance capabilities.TCFD elements has built an ESG governance system structure with the Board of Directors as the core guidance and the ESG Environmental image and
Working Group as the specific implementation support. Among them the Board of Directors is responsible for leading and fulfillment of social responsibilities:
supervising climate change matters formulating climate change-related strategies and institutional policies and regularly assessing *Formulate and implement If the Company fails to implement Increased financing proactive environmental strategies
and effectively supervising the work results. The ESG Working Group is responsible for specific implementation and actively Repu- effective emissions reduction and difficulty and social responsibility plans
building an efficient cross-departmental coordination mechanism including assessing climate change-related risks and tational energy efficiency management Medium Short term
Decrease in publish ESG reports regularly and risk measures the destructive impact on
opportunities and formulating and implementing climate change response measures. demonstrate corporate responsibili-climate will damage its reputation and operating revenue ty to stakeholders.affect the cooperation of customers
and investors.Strategy formulation Declining demand for refined oil
transportation: Under the low-emis- *Actively explore transportation
sion scenario the demand for clean opportunities for clean energy
Short and
The strategic direction of Shenghang Group to cope with climate change is to maintain and actively improve its own resilience to energy continues to rise while the adjust business strategies and Low medium
climate change. Combining with the actual characteristics of the business it identifies assesses and analyzes the potential impact demand for refined oil continues to product services in a timely term
decline and the Company's refined oil manner and match the fleet with
of climate change and draws up a list of climate risks and a list of climate opportunities based on the results and formulates Decrease in transportation business volume faces trade needs.corresponding measures as a reference for operational strategy. operating revenueMarket the risk of reduction.risk Increase in
operating costs
Changes in consumer behavior: *Carry out market research
Customers prefer energy transporta- understand the changing trend of
List of climate risks Medium to tion services that produce no or less Medium customer demand and adjust the long term
carbon emissions (such as carbon strategic layout and fleet
Probability Affected Description of neutrality in product transportation) structure in a timely manner.Type of risk Risk description of occur- time potential Coping strategy
rence range financial impact
*Scientifically design routes and
Increase in operating
Carbon tariff policy: The global *Led by the General Manager Extreme weather: severe wind
formulate strategies to enhance
costs resilience to minimize extreme
shipping industry is accelerating its each ship management severe convective weather dense
weather risks.integration into the cross-border department cooperates with fog typhoon and other severe Medium to Increase in litigation Increased operating Acute
carbon regulatory framework. The the establishment of an weather conditions causing damage High compensation and
costs (e.g. risk long term *The driver receives weather
Company is expanding its foreign inter-departmental special to goods or delayed delivery; fines
increased carbon information every day and the
trade fleet business and future working group such as an Shipment delays resupply impedi-
emissions shore-based supervisor tracks the
Policy route planning may be affected by energy conservation and ments etc. increase fuel costs. Increase in insurance increased spending weather information in the sea
and the carbon tariff policies of many emissions reduction leading costsMedium to on carbon trading area in real time.regula- countries. If the requirements for Medium group pays attention to long term costs and
tion obtaining trading and fulfilling mandatory requirements such compliance costs
risks carbon emission allowances in as global supervision and such as fines for
different jurisdictions are not met regulations and formulates
not meeting *Focus on the long-term changes
in a timely manner the ship may green transformation plans and
compliance ncrease in default in the operating environment such
not be able to pass the port access energy conservation and Rising sea levels: Changes in
requirements) costs as waterways and ports ensure the
review of the relevant country/re- emissions reduction actions to Chronic average temperatures rising sea High Long term safety of production and operation
gion resulting in ship detention or ensure the compliance risk levels and extreme wind speed Increase in personnel operations and provide
business disruption. operation of the Company. make navigation difficult. operating costs customers with high-quality
transportation services.
4950
Transition risks Physical risk
Transition risks2024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.Climate change response goals
List of climate opportunities
Probability Affect- By reference to the Initial IMO Preliminary Strategy on Reduction of GHG Emissions from Ships Shenghang Group has formulated
Opportunity
type Opportunity description
of occur- ed time Description of potential Coping strategy its Green and Low-Carbon Transformation and Development Plan considering the current carbon emission status of its fleet and
rence range financial impact the future strategic plan. The Plan sets a long-term goal of "peaking fleet carbon emissions by 2030 and achieving carbon
neutrality by 2060 using 2024 as the baseline year." The Company's GHG emissions mainly come from direct emissions from ships.For international shipping and domestic shipping the Company has formulated carbon neutrality implementation paths to achieve
Shipping energy transformation
Reduce fuel procure- *Continue to invest in
accelerates the Company net zero emissions.ment costs building a green fleet and
Energy promotes the development of Medium Medium accelerate the development
transi- clean energy and explores the to high to long Obtain subsidies or of renewable energy ships
tion application of green shipping term "Three-step" strategypreferential policies and the preparation of
technology which helps to related to new energy related facilities
reduce GHG emissions.The adoption of advanced *Utilize smart shipping Step 1 Step 2 Step 3
technologies and optimization of Short technologies and equipment
Efficiency operational processes can and Reduce fuel consump- to establish a comprehensive
improve reduce fuel consumption while Medium medium tion and operating costs energy efficiency assessment The construction target is a The construction target is a The construction target is a
ment improving energy efficiency and term index system to encourage short-term plan (from 2024 to 2025). medium-term plan (from 2025 to long-term plan (from 2030 to 2060)
transportation efficiency. energy-saving innovation The main goal is to ensure that the 2030). The main goal will be to with the main goal of achieving zero
Company's fleet meets the achieve the carbon peak of the net emissions.performance requirements of energy Company's fleet and actively promote
conservation and emissions reduction the application of zero/near-zero
and carry out the demonstration and emission technology and new energy.Customer demand for application of new energy and new
low-carbon and environmentally
*Develop new ship types energy conservation and emissions
Market friendly shipping services is promote the use of reduction technologies.expan- growing and companies Medium Increase operating Medium low-carbon/zero-carbon
sion providing such services can term revenue fuels and enhance
attract more customers
competitive advantages
enhance brand value and
market competitiveness.Time definition: When describing the impact time range of risks and opportunities they are divided into three time periods: short-term (within 1 year) *We will continue to promote the optimization and adjustment of the fleet's capacity structure
medium-term (1-5 years) and long-term (more than 5 years) so as to more clearly show the potential impact of these factors on the future develop- combine it with the ship EEXI/CII energy efficiency assessment accelerate the elimination of old
ment of the Company.The following “time range” shall have the same definitions as this section. ships and outdated ship types with backward technology low energy efficiency and poor cargo
capacity optimize the fleet's tonnage structure and promote the development of ships in the
direction of large-scale professional and intelligent.*Actively adopt advanced ship design and apply new green energy-saving technologies
in new shipbuilding to achieve EEDI that meets or exceeds IMO Phase III energy
efficiency requirements.Risk opportunity and impact management
*Carry out application research on biofuels and carbon capture technologies and
In accordance with the risk management process the Company identifies and assesses the nature probability of occurrence promote their application as the main technical paths in the short and medium term.impact time frame and potential financial impact of climate risks that may be faced during the operation and takes measures to
reduce the risks to an acceptable level. Risk categories include the policy and regulatory risk the technical risk the reputational
risk the market risk and other transformation risks as well as acute and long-term physical risks.Meanwhile the Company formulates and adjusts the opportunity utilization strategy in a timely manner according to the type *Carry out technical application research on alternative energy sources such as LNG
probability of occurrence impact time range and potential financial impact of climate change opportunities in combination with methanol ammonia and hydrogen and gradually replace them when conditions permit.actual operations. Opportunities include energy transition efficiency improvement and market expansion.
5152
Main technical
path
Opportunities2024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.Environment management system
GHG emissions
The Company earnestly fulfills its responsibility for environmental protection builds a ship-shore collaborative environment
Indicator Unit 2024 management system that is compatible with its own business operations and establishes an overall governance structure for
environmental management with the Board of Directors shore-based the relevant departments and ESG working group as the
overall governance structure for environmental management. The general manager as the first person responsible for
Direct GHG emissions (Scope 1) (self-operated ships) tCO2e 184444.71
environmental protection and pollution prevention and control is responsible for guiding and promoting the effective
implementation of environmental policies and environmental management objectives. The safety director/DPA is appointed as the
Direct GHG emissions (Scope 1) (official vehicles) tCO2e 26.04 environmental director to comprehensively supervise the environmental compliance of the Company's shore-based and ship-based
environment and the relevant functional departments are responsible for implementing various environmental protection
Direct GHG emissions (Scope 1) (gas) tCO2e 5.62 regulations to comprehensively regulate the management of shore-based and ship-based environment activities.Total direct GHG emissions (Scope 1) tCO2e 184476.37
S能he源n管gh理a组ng织 G架r构oup's environmental management organizational structure
Total indirect GHG emissions (Scope 2) tCO2e 233.02
General Manager
Other indirect GHG emissions (Scope 3) (time-chartered ships) tCO2e 24687.31
Total GHG emissions tCO2e 209396.70 Safety Director
GHG emission intensity tCO2e/RMB1 million operating revenue 139.63
Safety General
GHG emissions reduction tCO2e 32.39 Supervision Marine Technical Crew Procurement
Department Department Department Department Department
Administration
Department
Note: The calculation of Scope 1 GHG emissions refers to the IMO's Fourth IMO Greenhouse Gas Study 2020 and the Guidelines for Accounting
Methods and Reporting of Greenhouse Gas Emissions of Enterprises in Other Industries (Trial). The calculation of Scope 2 GHG emissions refers to
the 2022 Electricity Carbon Dioxide Emissions Factors and the General Principles for Calculation of the Comprehensive Energy Consumption
(GBT2589–2020). GHG emission sources include ship fuel oil and diesel natural gas and purchased electricity. The statistical scope of purchased Ship
electricity covers Shenghang Group. The calculation of GHG emissions reduction refers to the China Power Industry Development Report 2024 and
the General Principles for Calculation of the Comprehensive Energy Consumption (GBT2589–2020).Department Environmental protection responsibilities
Environment management *Track the implementation of environment activities of each department;
Safety Supervision Department
*Carry out investigation and identification of environmental factors.*Be responsible for the safety of ship shipping and cargo operation to avoid
Shenghang Group fully recognizes the significance of environmental environmental pollution;
protection adheres to the "green eco-friendly energy-saving and Marine Department *Guide the implementation of measures such as ship route optimization to
emission-reducing" environmental management philosophy actively reduce fuel consumption and exhaust emissions.responds to international environmental conventions and initiatives such
as the United Nations Convention on the Law of the Sea and the *Introduce advanced technology and environmental protection equipment to
Technical Department reduce pollutant emissions;
International Convention for the Prevention of Pollution from Ships
*Supervise the maintenance of the ship to eliminate leakage.(MARPOL Convention) strictly follows domestic and local laws and
regulations such as the Marine Environmental Protection Law of the *Organize training on energy conservation emissions reduction and environmental
People's Republic of China and the Regulations on the Prevention and Crew Department protection to enhance the crew's awareness of environmental protection.Control of Ship Pollution to the Marine Environment and is committed to
achieving excellent environmental performance in safe ship operation and *Procure environmentally friendly marine materials with minimal impact on the
ensuring that the Company's production and operation meet various Procurement Department environment.environmental protection requirements and minimize the impact of
pollution emissions on the ecology and environment by continuously General Administration Department *Be responsible for the management of environment activities in shore-based office.strengthening environmental compliance management.
53 542024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
In order to standardize the management of ship environment activities the Company has formulated the Environmental Protection
Management Procedures by reference to the environment standards and specifications formulated by IMO competent authorities Management and identification of environmental factors
classification societies and shipping industry organizations to implement the full-process control of ship pollution prevention and
prevent the occurrence of ship pollution environment accidents. During the Reporting Period the Company did not receive any
major administrative penalties from the relevant departments such as the ecology and environment departments or be held
The Company actively identifies environmental factors and potential risks in business operations carries out environment risk
criminally liable for environment incidents.identification assessment and materiality determination year by year implements the management mode of prediction early
warning and monitoring of important environmental factors and formulates specific response strategies aiming to reduce pollutant
emissions from the source and promote the realization of the "zero pollution" goal.As of the end of the Reporting Period the Company has passed the
Probability Affect- Description of
ISO14001:2015 environment management system certification and Risk description of occur- ed time potential financial Countermeasures
all its operating ships have obtained corresponding anti-fouling rence range impact
certificates anti-oil pollution certificates anti-domestic sewage
pollution certificates anti-air pollution certificates and anti-ship
garbage pollution certificates in accordance with the requirements
*Regularly organize anti-pollution training
of the relevant international conventions or domestic ship Pollutant emissions:Various
pollutants and waste are to enhance the environmental awareness of
inspection rules applicable to them.ISO14001:2015 Environmental generated during daily all employees.Increased costs of
Management System Certification transportation of ships such as environment *Strengthen the control of pollutant
chemical volatilization oil Short to
violations: the generation process to reduce the emission
discharge tank washing water High medium
Company may face and toxicity of pollutants from the source.discharge exhaust gas term
The Company always emphasizes that "environment compliance ultimately depends on the personal performance of each fines and litigation discharge waste discharge etc.compensation *Strictly implement end-of-pipe treatment employee who agrees with the Company's environment management requirements." It regularly organizes environmental If the discharge does not meet and all ships are strictly equipped with
protection publicity and skill training covering industry conventions industry regulations Company environmental protection the regulations it will cause anti-pollution facilities to ensure
policies pollution prevention measures etc. to enhance the environmental awareness and professional ability of all employees and environmental pollution. up-to-standard discharge.reduce the impact on the environment in daily operations.Increased economic
Sudden environment losses: the accident *Strengthen crew operation skill training
accidents:Fires explosions may cause loss of improve skill level and strictly standardize
leaks of hazardous materials and ships and goods operation process.other sudden environment Medium breach of contract *Regularly carry out equipment inspection
accidents caused by improper Low to long damage to and maintenance and troubleshoot in time.crew operations and equipment term reputation and
failures can cause serious compensation for *Formulate emergency plans for
damage to the atmosphere and environmental environment accidents and organize
marine ecological environment. pollution caused by emergency drills.the accident
Environmental protection training
Increased operating
Key performance costs: more
Policy risks：Environmental manpower material *Introduce new technologies new
policies and regulations are Medium and financial processes and environmental protection
2.95 becoming increasingly stringent Medium to long resources need to equipment to reduce pollutant emissions to During the Reporting Period the Company's environmental protection expenditure totaled million RMB and pollutant emission standards term be invested to meet the requirements of new standards.
are being raised. improve the level of
accounting for 0.16% of the operating revenue. pollution prevention
and control
55 562024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Environment risk management and control Environmental emergency response management
In order to enhance the ability to prevent and respond to environmental pollution emergencies the Company has established and
Environment risk management and control improved an emergency coordination mechanism and set up an emergency response team. The General Manager as the commander in chief is responsible for supervising and coordinating emergency actions and making decisions. The members of the
emergency response team are composed of the General Manager of each executive department or DPA. For possible marine
The Company implements the management mode of prediction early warning and monitoring of important environmental factors environment pollution accidents such as oil pollution leakage chemical spillage fire and explosion the Company has formulated
and formulates and implements the Environmental Factor Assessment and Operation Control Procedures. The Safety Supervision environmental pollution emergency plans and marine pollution emergency plans for ships clarifying the division of responsibilities
Department and the Marine Department are respectively responsible for organizing the environmental factor investigation of emergency response process resource allocation and pollution control measures for various pollution accidents.shore-based office space and ships determining the assessment criteria of important environmental factors by comprehensively
considering the environmental and operational impacts and updating and adjusting it according to business activities and changes
in laws and regulations.Emergency response procedures for oil spills
Environmental factor identification process
The coastal state and Measures to control
Perform reporting procedures local competent authority pollution discharge
provide assistance
Oil or hazardous
Environmental factor identification is carried out with shore-based office activities and ship liquid substance
transportation operations as the main line of investigation. spillage
Identify monitor and
Determine the Emergency alarm Evacuation of personnel
identification range assess spill sources
Consider the impact of the operation process on the environment in many aspects including
but not limited to atmospheric emissions water discharges land contamination raw material
and natural resource consumption and energy usage. The Company regularly organizes pollution accident emergency treatment training and emergency drills for the crew explains the
Identify environ- use specifications of emergency equipment and accident reporting procedures simulates oil spills hazardous goods leakage and
mental factors other pollution accidents and improves the environmental protection awareness and emergency treatment ability of the crew through
the combination of theoretical learning and practical operation and tests the availability and feasibility of the emergency plan.The Safety Supervision Department shall collect and summarize the findings of environmental
factors and develop an environmental factor assessment form.Summarize findings
According to the important environmental factors identified and assessed the management
plan and operation instructions shall be formulated and submitted to the General Manager
for approval.Formulate
management plan
Pollution accident emergency drills
57 582024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Maintenance of anti-pollution equipment Wastewater
source Management and disposal method Treatment equipment
The Company's operating ships are equipped with anti-pollution equipment in accordance with laws and regulations and are *Domestic sewage is collected by on-board collection devices
regularly maintained. Check and test the ship domestic sewage treatment device oil-water separator incinerator and other key and disposed of by a third party when the ship is docked
anti-pollution equipment every month. For the equipment that cannot meet the anti-pollution requirements update and transform
it in time to ensure the normal operating conditions of the equipment and avoid running emitting dripping and leaking during *All ships are equipped with domestic sewage treatment devices
operation. In addition the old equipment parts can be reused by returning to the factory for repair saving equipment costs. and the domestic sewage is discharged 12 nautical miles away from the nearest land after being treated by the on-board
domestic sewage treatment device to meet the standards
*Samples are regularly taken at water outlets for third-party
Domestic testing to ensure that the suspended solids COD BOD5 fecal
coliform bacteria and other pollutant indicators in domestic
sewage sewage are within the emission limits specified in the Ship Water
Pollution Emission Control Standards Domestic sewage treatment equipment
*Oily sewage is collected by on-board collection equipment or
incinerated in an incinerator and disposed of by a third party after
the ship is docked
*Oily sewage is discharged after being treated by the oil-water
separator and reaching the standard
*Monitoring equipment is equipped at water outlets to monitor
Oily sewage the oil content in real time and regular third-party testing is
conducted to ensure that the oil content is within the emission
limits specified in the Ship Water Pollution Emission Control
Standards Oil-water separator
Daily maintenance of the oil-water separator Daily inspection and testing of domestic sewage *Tank washing water is collected by on-board collection equipment
treatment equipment and disposed of by a third party when the ship is docked
*Compliant wash water is discharged through the ODME system
after meeting the discharge conditions specified in MARPOL Annex I
*Regular detections of the oil discharge monitoring equipment are
Wastewater management carried out to ensure the normal operation of the monitoring system
Tank washing
water *The tank washing process is optimized and environmentally friendly detergents are used to further reduce the potential impact
The wastewater generated during the navigation of the Company's ships mainly includes domestic sewage oily sewage hold on the marine ecosystem Oil discharge monitoring
washing water and ballast water. In order to standardize the compliant wastewater discharge management the Company has equipment (ODME)
formulated the Instructions for the Prevention of Domestic Sewage from Ships the Instructions for the Prevention of Ballast Water *Ballast water is collected by on-board collection equipment and
Pollution from Ships the Instruments for the Prevention of Oil Pollution from Ships and other systems specifying the management disposed of by a third party when the ship is docked
requirements and discharge standards for all wastewater categories. The wastewater generated during the voyage of the ship is
mainly treated in two ways: one is to enter the on-board collection facility and after the ship berths it is handed over to the *Ballast water replacement is carried out in strict accordance
with the requirements of the Ballast Water Management Plan and
third-party organization approved by the MSA of the People's Republic of China for treatment; Second handle it by themselves the Instructions for the Prevention of Ballast Water Pollution from
according to the regulations and discharge it into the environment water after reaching the discharge standards of the coastal Ships
state and the port state. Ballast water *Ships involved in international routes are equipped with ballast
The Company's ships are equipped with monitoring devices at wastewater outlets with established management ledgers including water treatment equipment and ballast water is discharged after
the Domestic Sewage Discharge Record Form and the Oil Record Book. These devices undergo regular third-party testing to treatment in accordance with the relevant provisions of the
LeesGreen ballast water
MARPOL Convention treatment equipment
ensure compliance with the requirements of international conventions rules and mandatory standards. In addition the Company
continuously monitors the capacity and liquid level of the wastewater storage tank to prevent wastewater from spilling out of the
tank.
59 602024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Wastewater discharge indicators
Indicator Unit 2024 Atmospheric pollutants Management and disposal method
Discharge to sea after treatment m3 83880.96 *The SCR exhaust treatment system is installed to treat and absorb NOX and the
Nitrogen oxides (NOX) emission meets the relevant requirements of MARPOL Convention Annex VI and the
Ship domestic sewage treated to meet discharge Ministry of Transport of the People's Republic of China "Jiao Hai Fa (2018) No. 168."
standards m3 9113.33
*Use low-sulfur fuel and strictly implement the limits on sulfur emissions in various
Oily sewage treated to meet discharge standards m3 900.63 regions of the world;
Sulfur oxides (SOX)
*Formulate standardized low-sulfur oil conversion procedures to strengthen fuel
Fresh water from tank washing treated to meet quality management.discharge standards m3 73867.00
*Liquid cargo ships are equipped with vapor collection systems to effectively
Volatile Organic Compounds (VOCs) collect VOCs generated during loading.Volume of wastewater disposed of by third parties m3 6834.25
Tanker washing sewage for third party disposal m3 5071.64 *Standardize operation management strengthen equipment maintenance Particulate matter (PM)
ensure full combustion of fuel and reduce particulate matter generation.Ship domestic sewage for third party disposal m3 846.72
*Real-time monitoring of the operation of refrigeration equipment and other
equipment containing ODSs to avoid leakage;
Cabin sewage for third party disposal m3 915.90 Ozone depleting substances (ODSs)
*Ships and equipment containing ODSs will be delivered ashore to the shore
receiving facility for disposal.Total wastewater discharge m3 90715.21
m3/RMB1 million Exhaust emission indicatorsWastewater discharge intensity 60.49
operating revenue
In指dic标ator 单Un位it 20220424年Note: The statistical scope covers Shenghang Group.Nitrogen oxide (NOx) emissions Ton 5062.84
Exhaust gas management Nitrogen oxide (NO ) emission intensity Ton/RMB1 million operating x revenue 3.38
Sulfur oxide (SOx) emissions Ton 218.31
The Company's waste gas is mainly generated from the combustion process of ship fuel oil including pollutants such as sulfur oxides
(SOX) nitrogen oxides (NOX) volatile organic compounds (VOCs) and particulate matter (PM). The Company is committed to reduc-
ing the emission of various air pollutants from the source. The ship uses main engine auxiliary engine and other equipment that Sulfur oxide (SOx) emission intensity Ton/RMB1 million operating 0.15
meet the air pollution emission requirements in the MARPOL Convention. The relevant personnel are required to strictly follow the revenue
operating specifications and regularly carry out equipment maintenance; continuously promote the innovation and upgrading of ship
technology optimize ship design improve the operating efficiency of diesel engines and reduce pollutants. Carbon dioxide (CO?) emissions Ton 271021.27
The Company strictly implements the requirements of current international conventions domestic laws regulations standards and
specifications on the emission control of air pollutants prepares the Instructions for Prevention of Air Pollution by Ships and uses Ton/RMB1 million operating
Carbon dioxide (CO?) emission intensity 180.73
fuel oil that meets the sulfur content of the corresponding navigation area. The exhaust gas generated by fuel oil combustion is revenue
discharged after heat energy recovery. Meanwhile the Company has comprehensively promoted the use of low-sulfur fuel signifi-
cantly reducing sulfur oxide (SO ) and particulate matter (PM) emissions and contributing to improving air quality. Note: The statistical scope of exhaust emissions only covers Shenghang Group.X 注：废气排放统计口径仅包含盛航股份。
61 622024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Waste management
The Company strictly controls the discharge of waste at sea and formulates the Ship Waste Management Plan in accordance with Personnel training
the Supplementary Provisions of MARPOL 73/78 and the Guidelines for the Preparation of Waste Management Plan of the
International Maritime Organization. The master as the general person in charge is responsible for supervising the smooth
implementation of the management plan. By continuously strengthening the full-process management of waste and strictly *Regularly organize crew members to carry out waste pollution training and education strengthen the
implementing the classified collection and delivery to shore treatment process the generation and discharge of waste at sea are publicity and implementation of the Waste Management Plan and ensure that all crew members are familiar
reduced and the impact on the marine environment is minimized. with equipment operation and waste management procedures.Full-process waste management
Waste ledger
management
Reduce waste generation
at source
*Establish waste records in accordance with the Garbage Record Book issued by the maritime safety authority
of the flag state and strictly standardize records.*Reduce unnecessary waste in production operations and daily activities;
*Use recyclable or reusable materials and packaging.Ship waste discharge indicators
Establish waste manage-
ment procedures Indicator Unit 2024
*Establish perfect procedures for classified collection sorting processing storage recycling and reuse of Non-hazardous waste generation Ton 288.35
waste and implement personnel to strictly perform their management responsibilities.Non-hazardous waste generation intensity Ton/RMB1 million operating revenue 0.19
Compliance discharge and
treatment of waste Hazardous waste generation Ton 720.88
*All garbage from inland river ships shall be delivered to shore for reception and treatment and shall not be Hazardous waste generation intensity Ton/RMB1 million operating revenue 0.48
discharged outside;
*Except for food waste discharged 12 miles outside the territorial sea baseline other waste shall be sent to
shore for treatment and shall not be discharged; Regulatory-compliant waste disposal rate % 100
*Waste that meets the requirements of incinerator incineration shall be crushed and incinerated according to
regulations and the ash and slag shall be stored on the ship and sent to the port reception facility for Note: The statistical scope covers Shenghang Group.treatment after arrival at the port;
*Hazardous waste shall be stored separately from other waste and handed over to a third-party agency for
treatment after docking;
*When discharging garbage at sea it is forbidden to discharge garbage when other substances prohibited
from discharging are mixed and polluted.
63 642024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Identification of energy management risks
Indicators and targets and opportunities
The Company adheres to the environment goal of "zero pollution and no spillage" and adopts a zero-tolerance policy for pollution
accidents. During the Reporting Period the Company formulated a three-year environmental protection plan set quantitative targets Identification of energy management risks and opportunities
for wastewater waste gas waste and other environment indicators and continuously tracked the Company's environmental
management performance reflected in various indicators forming a normalized management of sustainable development goals.Probability Affect-
Meanwhile the Company adjusted and continued to promote the objectives based on the completion of the objectives for this year. Type of Description of Description of
risk/opportunity risks/opportunities of occur- ed time financial impact Countermeasuresrence range
The Company's ship
Energy management operations rely on fuel
*Establish a sound energy
oil and other energy Increase in energy management system to improve the
Energy
sources and energy costs
Short to energy utilization efficiency of ships;
price High medium
prices may rise due to
rise Increase in term *Track fuel oil market price
various factors such operating costs fluctuations and manage the Company's
With the energy management policy of "reducing energy consumption improving energy efficiency promoting energy-saving as supply and overall energy costs.technologies and continuously improving management" the Company has formulated the Energy Management Manual of the international situation.Company in accordance with the Energy Conservation Law of the People's Republic of China and other relevant laws and
regulations and established a full-process energy management mechanism to continuously improve the Company's energy
utilization efficiency and effectively ensure the smooth achievement of energy management objectives.The International *Strengthen ship energy efficiency
Maritime Organization management implement energy
(IMO) has tightened efficiency data reporting and monitoring
Development of the energy management system regulations on the Energy Increase in and continuously improve the Ship Energy Efficiency
efficiency operating costs Energy Efficiency Management Plan;Index (EEXI) of ships Medium Long
regulation term
The Company sets up an energy management representative who is specifically responsible for the establishment operation and and if the regulations of ships Decrease in *Optimize ship routes and operation are not met
maintenance of the Company's energy management system and reporting the operation of the energy management system to the operating revenue processes continuously improve hull navigation may be equipment and reduce ship energy
General Manager. The Safety Supervision Department the Ship Management Department and the ship operating unit shall restricted. consumption.cooperate with the Human Resources Department the General Administration Department and each ship to perform management
responsibilities. In addition the Company incorporates energy management performance into the assessment system formulates
corresponding incentive mechanisms and implements evaluation assessment and incentive measures for the performance of
executive departments the relevant personnel and ships.The ship energy *Through various operational
management system management measures and optimized
E Short to 能ne源rg管y理 m组a织na架g构ement organizational structure Energy can effectively reduce Reduced operating transmission design we can reduce efficiency High medium energy consumption and costs ship energy consumption and achieve
term
improve energy energy conservation and carbon
General Manager utilization efficiency reduction goals.Management
Representative *Actively expand clean energy
Clean Increase the use of New Medium business;
Energy clean energy. investment/market High to long *By optimizing the energy use
Transition revenue term structure expanding clean energy and
Safety reducing carbon emissions.Supervision Marine Technical Crew Procurement
General
Department Department Department Department Department
Administration
Department
Time definition: When describing the impact time range of risks and opportunities they are divided into three time periods: short-term (within 1 year)
Ship medium-term (1-5 years) and long-term (more than 5 years) so as to more clearly show the potential impact of these factors on the future develop-
ment of the Company.The definitions of the following "time range" shall be the same as those in this section.
6566
Risks Opportunities2024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.Energy impact risk and opportunity management Energy management measures
The Company regulates energy management activities through the Company's Energy Management Manual and Instructions for Ship energy efficiency optimization
Ship Operation and Management Manual implements the continuous improvement mechanism of plan–do–check–act (PDCA) and
monitors and measures each process and activity to ensure that problems can be quickly improved once found.The Technical Department of the Company shall analyze the historical data and expected operation of ships issue energy efficiency
The Company uses process methods to control the whole process of energy management and comprehensively identifies and targets to ships at the beginning of each year and the Ship Management Department shall formulate the Ship Energy Efficiency
assesses energy factors in shore-based activities ship transportation and operations; Through the application of advanced Management Plan for each ship. After each voyage the ship needs to fill in the energy efficiency data in the maritime
energy-saving technologies and the mining and utilization of the best energy-saving practical experience the energy utilization administration's energy efficiency and carbon strength management system in a timely manner. The maintenance department is
efficiency of ships is continuously strengthened so as to achieve the gradual reduction of ship energy consumption and the responsible for checking the ship's energy efficiency management and holds an annual ship energy efficiency management
effective control of carbon emissions and promote the further improvement of the Company's energy management level. assessment meeting to analyze the data and compare the performance and puts forward improvement suggestions and measures
according to the EEXI and CII required by IMO.According to IMO's requirements for international voyage ships of 5000 gross tons and above to participate in the annual operation
Targets and indicators CII rating 11 of the 13 ships of 5 000 gross tons or above operated by the Company engaged in foreign trade transportation business have obtained the highest grade A in the CII rating demonstrating industry-leading environmental protection and energy
efficiency.The Company adheres to the concept of environmental protection and sustainable development follows the principles of energy
conservation and cost reduction and takes the energy efficiency indicators required by the relevant laws and regulations and the Application of energy-saving technologies
energy consumption management and control indicators used by the Company as the comprehensive measurement of energy
management formulates medium- and long-term energy management objectives and annual energy management objectives and
decomposes and implements them in accordance with the Procedure for Formulation and Implementation of Objectives Indicators The Company actively explores the application of new energy-saving technologies and methods incorporates good practices of
and Management Plans to carry out energy management in a systematic manner. energy-saving management into energy management plans and carries out application research on energy-saving software new
materials and new devices to build green ships.Energy targets
Indicator Unit Target for 2024 Achievement
* During the Reporting Period the Company built a series of high-end chemical tankers
to further optimize the hull alignment design and reduce wave resistance.Energy Efficiency Operational Indicator (EEOI) / ≤70 Achieved * The new energy-saving diesel engine with lower comprehensive energy consumption
was used as the main propulsion device and power generation prime motor to reduce
fuel consumption.Energy-saving
transforma- * The Company conducted pilot applications of silicone coatings to several ships to
Failure of auxiliary engines or boilers / ≤10％ Achieved tion of ships reduce navigation resistance and actively build a low-carbon transport fleet.* Efficient propellers and deflectors were used to improve propulsion efficiency and
reduce energy consumption.The percentage of the host in the best / Achieved * The cargo pump system adopted frequency conversion technology; LED lights were ≤85％
operating condition used to illuminate the entire ship.Energy consumption per unit turnover Kg/ktnm ≤5.800 Achieved
Based on the shipping big data analysis and intelligent management platform the
Operational Company optimizes the route speed and draft difference so as to realize the optimal
energy efficiency route planning optimal speed selection and optimal draft difference judgment of ship
Marine diesel oil (MDO) consumption 10000 tons/ship Achieved optimization navigation reduce energy consumption and thus optimize the energy efficiency ≤0.080
performance of ships.
67 682024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Shore-based PV power generation project Case
New material application for ship hull coatings Case
The Company actively responded to the call for environmental protection and vigorously promoted clean energy. In 2024
High-performance hull coatings are an energy-sav- it completed the shore-based PV power generation project and connected the 100 kW PV power generation on the roof
ing solution to improve ship fluid power which can of the park to three inverters on the 9th-11th floors of the air-conditioning power unit. During the Reporting Period the
improve ship performance and optimize ship power generation was 39446.37 kWh.energy consumption. The Company's "NANJING
18" has achieved an average energy saving of 3-5%
by using new silicone hull coatings."NAN LIAN 18" hull coating improvement project
Shore-based PV power generation project Photovoltaic power converter
Ship operation optimization
Energy usage
The Company has formulated a complete ship operation manual continuously optimizes fuel management and use tank washing
operations equipment use etc. covering the whole shipping process and regularly trains the crew on energy management to
Indicator Unit 2024
reduce energy consumption from the details.Ship fuel oil consumption Ton 46182.17
Ship diesel consumption Ton 20374.53
Energy Efficiency management training Case Self-operated ship energy consumption including:
On July 22 2024 the Company's Locomotive Fuel oil
Ton 40020.98
Department trained employees on the provisions
Diesel Ton 18658.57
implementation data filling and reporting testing
assessment and improvement of energy manage- Time-chartered ship energy consumption including:
ment which improved the energy management
level of the trainees. Fuel oil Ton 6161.19
Diesel Ton 1715.96
Ship fuel oil consumption intensity Ton/RMB1 million operating revenue 44.38
Energy efficiency management training Gasoline (official vehicle) Liter 11804.06
Gas Ten thousand m3 0.26
Total purchased electricity kWh 414854.00
Green energy use Photovoltaic power generation kWh 39446.37
Total clean energy consumption Ton of standard coal 4.85
The Company actively explores the use of shore-based clean energy and comprehensively considers the effective use of solar
energy wind energy and other clean energy sources in new buildings. These measures reduce the impact of the Company's Total clean energy consumption Ton of standard coal 95735.46
operations on the environment and reflect our earnest implementation of the concept of sustainable development.Energy consumption intensity Ton of standard coal/RMB1 million operating revenue 63.84
69 702024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Water source management Diverse ecology maintenance
The Company's shore-based water is sourced from municipal water purchases and the ship's fresh water is mainly sourced from
municipal water purchases supplemented by seawater desalination. The Company focuses on the rational use and management
of water resources and post slogans about saving water on a daily basis. We improve water use efficiency by promoting Marine ecosystem and biodiversity conservation
water-saving technologies and using water-saving equipment and achieve dynamic adjustment to the fleet's water consumption
through intelligent monitoring systems. The ship's self-supply of fresh water is enhanced through "seawater desalination +
condensate recovery" technology.Increasing fresh water supply on ships by desalination Case
Shenghang Group's biodiversity protection mission：
The Company currently has 22 ships equipped with
seawater desalination plants which provide fresh water to Actively take actions to protect biodiversity eliminate invasive alien species reduce marine
ships through reverse osmosis vacuum condensation and pollution and reduce the impact of underwater radiation noise pollution on fish survival.other methods. Among them SHENGHANG 002 is
equipped with a reverse osmosis water generator to
convert seawater into fresh water that meets drinking and
domestic water standards which can provide 12-15 tons of
fresh water per day improving the self-sufficiency of fresh
water resources for ships. In the global economic and social development biological resources are crucial to the earth's ecology and human beings and
terrestrial and marine biodiversity is the common wealth of mankind. Shenghang Group actively responds to various conventions
and initiatives on biodiversity protection at the international domestic and industry levels. Within the scope of trade and ship route
operations it strictly avoids biologically sensitive waters and ecological protection areas ensures a safe distance from key
protection areas to prevent negative impacts and advocates suppliers to join hands in protection efforts. During the Reporting
Reverse osmosis fresh water generator Period the Company formulated the Green Sustainable Development and Biodiversity Management System to ensure the
compliant treatment of ship sewage garbage and ballast water actively explored the reduction of underwater radiation noise and
marine biodiversity research guarded the blue ocean and contributed to building the ecological chain of biodiversity protection
and maintaining the ecological balance and sustainable development of the earth.Freshwater resource utilization
Indicator Unit 2024
Total water utilization m3 108535.38 Strategy formulation and risk management
Office water utilization m3 3023.15 In combination with the actual characteristics of the business
the Company identifies assesses and analyzes the potential
impact of changes in marine ecosystems and biodiversity
Ship water utilization m3 105512.23
conservation draws up a risk list based on the results and
formulates corresponding measures as a reference for operation
Water utilization intensity m3/RMB1 million operating revenue 72.36 strategies.The risk identification assessment and analysis process is the
same as the climate risk management process. For details
Note: The statistical scope of water utilization covers Shenghang Group. please refer to "3. Risk opportunity and impact Management"
under the "Response to climate change" section.
71 722024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
List of risks to the conservation of marine ecosystems and biodiversity
Probability Affect- Description of
Type Risk description of occur- ed time potential Risk response
rence range financial impact Optimize Incorporate biodiversity risk assessment into the route planning stage understand the
route seasonal migration and other characteristics of marine organisms and avoid sailing in
*Comply with the Ballast Water Management planning sea areas where marine organisms live and breed.Ballast water management: When Convention to prevent the spread of invasive
ships travel between ports ballast aquatic species
water may carry local aquatic
Medium
organisms. If it is not well managed it Increase in *Install advanced ballast water treatment Medium to long
may introduce organisms into new operating equipment and maintain it regularlyterm
waters when ballast water is costs：may
*Strengthen employee training to ensure the Ballast Water Strictly implement the relevant IMO regulations formulate the Ship's Ballast Water discharged offsite upsetting the local result in
ecological balance. ecological effective operation of ballast water Discharge Management Plan install advanced ballast water treatment systems and require ships to
compensation management system Management take effective measures during ballast water operations keep ballast water records and
oil cleanup carry out effective management to prevent marine environmental pollution.costs environ-
mental litigation
Underwater radiation and noise
costs and fines.Risks management：Underwater radiation and
noise can interfere with the communica-
Medium Decrease in *Identify and strictly manage underwater
tion navigation predation and Medium
term operating radiation and noise sources that may be
reproduction of marine organisms income： generated by the fleet Reduce the speed within a reasonable range to reduce underwater noise and adopt
causing harm to marine organisms and Controlling possible
destroying marine biodiversity. Underwater efficient low-noise propellers vortex suppression fins etc. to reduce the noise generated reputational
damage market Noise and by underwater eddies and reduce the interference to marine life that relies on sound for
restrictions and Radiation navigation communication and predation.loss of
Oil spills：Ship collisions groundings customers. *System management process carry out daily
equipment failures etc. may cause oil monitoring and maintenance of key environ-
spills pollute the marine environment Long
Low mental protection equipment such as oil-water
cause serious damage to marine life term separators oil discharge monitoring etc.fisheries tourism etc. and trigger Emergency The Emergency Plan for Marine Pollution from Ships shall be formulated sufficient
ecological disasters. *Develop an oil spill emergency plan management emergency equipment shall be provided and regular drills shall be carried out. In case
of marine of an accident it shall be able to respond quickly and take effective measures to control
pollution the spread of pollution and reduce the damage to marine life and ecological
incidents environment.Objectives and planning
The stern tube shall be sealed with environmentally friendly lubricating oil or polymer
Optimize ship water-cooled stern to reduce environmental pollution; When repairing the ship the
The Company will continue to pay attention to and refer to the TNFD (Taskforce on Nature-related Financial Disclosures) maintenance bottom of the ship shall be removed in time the propeller shall be polished and the
framework clearly state the requirements for biodiversity conservation in the management process formulate special management anti-fouling paint without toxic and harmful substances shall be used.plans and integrate the requirements for biodiversity conservation into its annual environmental protection indicators for
quantification and assessment.Management measures Key performance
The Company actively implements a series of measures to reduce the impact on the marine ecological environment and
formulates special management plans accordingly. In the daily operation of ships the up-to-standard treatment process of During the Reporting Period the Company had a total of 22 ships equipped with ballast water treatment
pollutants shall be strictly implemented and the prevention mechanism of oil spills and the maintenance of ship equipment shall
be strengthened to effectively avoid marine pollution. In addition in the construction and maintenance management of ships systems with 42.31% fleet-wide implementation of ballast water exchange/treatment. The ballast water
environmentally friendly materials and advanced technologies are selected to reduce the potential impact on marine ecology. treatment plant met the requirements of the latest conventions and had been approved by USCG.Through strict control and comprehensive management of these key aspects efforts are made to reduce the adverse impact of
the Company's operation activities on the marine ecology.
73 742024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Circular economy
The Company has always placed the effective use and recycling of resources in an important position fully
implemented the concept of circular economy and deeply integrated it into all levels of daily operations.The Company has formulated and strictly implemented the "Company Energy
Management Manual" and significantly improved energy utilization efficiency by
implementing energy efficiency management measures.The Company actively adopts methods such as condensate recovery to achieve the
recycling of water resources.The Company uses the purchase of second-hand ships and the "one in one out"
capacity replacement method to optimize capacity structure and fully promote the
sustainable development of the circular economy.The Company's fleet uses exhaust gas boilers as the core components of the heat
recovery system which converts the waste heat of exhaust gas into steam required for
ship heating and fuel heating through heat exchange. The energy-saving system
effectively reduces fuel consumption and emissions by recycling waste heat. A typical
ship can save 5-10% of fuel oil in this process realizing a closed energy loop during ship
operation.
75 762024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
05 Innovation drive 79Customer service improvement 88Supply chain management 92Data security and 96 LEADING INDUSTRIAL VALUEprivacy protection
77 782024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Strategic objectives of scientific and technological innovation application
Innovation drive
Intelligent decision-mak-
ing center construction
The transportation management intelligent decision-making center is built based on deep learning algorithm achieving
R&D standard system exponential operational efficiency gains through dynamic scheduling optimization algorithm multi-dimensional
demand prediction modeling and an omnichannel interactive intelligent response system.Shenghang Group has built a "STAR" R&D standardization system (Systematic Technology Advancement Regime) spanning the
innovation value chain to reshape R&D management with a top-level architecture. The Company has formulated the R&D
Organizational Management System to define functional responsibilities and standardize management procedures across all phases
of product R&D and established a rigorous internal control system for R&D. The Company's leadership oversees project initiation Advanced Application of IoT
Perception Networks
approval and monitors execution to ensure the efficiency and quality of R&D design.Deploy the IoT infrastructure framework of comprehensive sensing nodes build an intelligent logistics cognitive
platform relying on multi-source heterogeneous data fusion technology establish a data confirmation and trustworthy
traceability mechanism and create an E2E supply chain collaborative decision-making platform.System
R&D Process Flow Project approval Architecture R&D Testing Release
Design
Extended Reality
Convergence Innovation
Build an ultra-high-fidelity maritime operational digital twin deeply integrate digital twin and extended reality (XR)
The Company has established a Research Center as the central entity and driving force of the Company's innovation management technology develop a Mixed Reality (MR)-enabled teleoperated collaborative platform reshape the man-machine
system which is responsible for formulating and implementing scientific and technological innovation strategies and plans and collaborative operation paradigm and significantly reduce the human error rate.carrying out product R&D technology acquisition intellectual property protection national project declaration etc.Green smart connectivity
ecosystem development
R能e源se管a理rc组h 织Ce架n构ter's organizational structure
Achieve innovative application of clean energy drive technology and intelligent path planning algorithm build a
Research hazardous chemical transportation entire lifecycle carbon emission monitoring system and through the environmental
Center parameter dynamic perception and closed-loop safety management mode build a new paradigm of negative carbon
intelligent logistics.Technical
Information
R&D Department Transformation
Department Department Innovation Incentive Mechanisms
The Company has established a talent incentive mechanism formulated an assessment reward and punishment system and an
innovation reward method and regularly organized R&D personnel to participate in training research technical exchanges and
other activities. These initiatives fully stimulate the enthusiasm and creativity of personnel foster a fair equal and positive R&D
environment and inject a steady stream of impetus for the Company's innovative development.
79 802024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Digital-intelligent
Indicator Unit 2024 innovation achievements
R&D expenditure Million RMB 36.84 Digital-intelli- *Intelligent green ship energy efficiency *Energy efficiency management system for
gent green monitoring platform ships based on environmental protection
Ratio of R&D expenditure to operating revenue ％ 3.39 shipping
*Anti-collision radar system for ships
Number of R&D team members Person 75
Digital-intelli- *Big data monitoring and early warning *Intelligent safety monitoring terminal for ships
Proportion of R&D staff to the parent company's
％ 10.50 gent safe
system for ships
workforce *Safe transportation control systemshipping *Safety supervision platform for hazardous
Note: The statistical scope covers Shenghang Group. chemical ships
R&D team composition *Beidou video monitoring terminal for
Digital-intelli- hazardous chemical ships *Crew online training system
gent operation
4 persons﹐5.33% 8 persons，10.67% management *Digital analysis platform for ship *Dangerous chemical ship cloud boarding platform
Master's degree or above Female management business of Shenghang Group
Undergraduate Male
Shenghang Ship's digital platform Case
Below undergraduate
Classification
by educational By gender The digital platform for ship management independently developed by Shenghang Group with the philosophy of
background "intelligent hub driving full-chain collaboration" has built a system matrix covering all scenarios of shipping forming
a three-dimensional structure of "strategic layer–operational layer–execution layer." In the strategic empowerment
28 persons， 43 persons﹐57.33% layer the digital panoramic monitoring is integrated through the homepage visual cockpit to realize dynamic
37.33% 67 persons， penetrating control of safety compliance and quality standards; in the core operational layer the safety
89.33%
standardization system and the integrated management of industry and finance form a double spiral drive and the
precise linkage builds a safety and value management system for the entire lifecycle of ships; in the resource
collaboration layer the human capital digital engine with crew management and personnel management modules as
the core seamlessly connects with the cognitive supply chain orchestrator composed of procurement management
2 persons2.67% and inventory management to form a refined resource allocation of people ships goods and wealth; in the
16 persons21.33% administrative support layer the file management system and the intelligent meeting management system build dual
15 persons20.00% channels of knowledge precipitation and action supervision to improve organizational efficiency.Under 30 years old (exclusive)
30-40 years old (including 30 excluding 40)
By age 40-50 years old (including 40 excluding 50)
50-60 years old (including 50 excluding 60)
60 years old and above
21 persons﹐28.00% 21 persons﹐28.00%
R&D innovation achievements
Shenghang Group takes the waterway transportation of hazardous chemicals as the core scenario reconstructs the core of
shipping services through digital and intelligent technology deeply integrates digital and intelligent innovation into the whole chain
of main business and builds a safety and efficiency-oriented intelligent shipping system.
81 822024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Ship intelligent monitoring system Case Online training system for seafarers Case
Guided by its operational philosophy of "data-driven safety sensor-reconfigured maintenance" Shenghang Group has built
an intelligent perception neural network covering all ship equipment. The system collects thousands of heterogeneous data
such as main engine temperature and speed in real time through linkage with high-precision sensor clusters and integrates
edge computing and IOT transmission technology to form a digital twin of the ship with heterogeneous data fusion.Meanwhile the data combines PMS planned maintenance system and fault reporting system to form a closed-loop
management ecology. The platform constructs an innovative three-dimensional architecture of "data acquisition layer :
intelligent analytics layer : management application layer" the bottom layer relies on industrial-grade IoT gateways to
establish an equipment perception network; the middle layer constructs an equipment curve knowledge graph through
learning algorithms; and the upper layer connects the maintenance management system to realize dynamic optimization of
maintenance strategies and reshapes the safety boundary of shipping by digital means.Industry–Academia–Research Collaboration
In terms of external partnerships and cooperation the Company actively establishes efficient and stable
industry–academia–research collaboration relationships with universities scientific research institutions upstream and downstream
partners. As of the end of the Reporting Period the Company has signed industry–academia–research collaboration agreements
with Jiangsu Institute of Industrial Technology Nanjing University of Posts and Telecommunications Southeast University and other
partners to jointly support the development of the industry through sharing resources and collaborative decision-making to achieve
a "win-win situation between industry and education."
Partners Collaborative project
Online training system for seafarers Case Cooperative R&D of intelligent monitoring Nanjing University of Posts and Telecommunications technology for ships
The online training system for seafarers built by Shenghang Group has built a digital system with cognitive computing Co-creation of JITRI—Joint Innovation Center for
capabilities based on the philosophy of "competency evolution through knowledge graph reconstruction." The system Jiangsu Industrial Technology Research Institute Shipping
supports multi-modal learning resource pools for streaming media courses and intelligent document parsing. The system
realizes the closed-loop of "learning–assessment–evolution:" during training interactive heatmap analytics track learning
progress in real time; during assessment an automatic grading engine enables second-level evaluation and automatically Chinese Academy of Sciences—Nanjing Institute of Cooperative R&D of the big data monitoring and
generates training effectiveness indicators. The platform has precipitated the formation of the Company's knowledge asset Broadband Wireless Mobile Communications early warning system for ships
database shortened the certification cycle of seafarer's post competency and created a digital transformation of shipping
Cooperative R&D project for scientific and
talents from "standard indoctrination" to "cognitive mpowerment." Southeast University School of Economics and
technological innovation of the integrated
Management
operations system
83 842024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Intellectual property protection Internal audit
Intellectual property management system Organize the audit of the intellectual property management system in strict accordance with the Control
Procedure for Internal Audit of Intellectual Property prepare an audit report formulate improvement and
prevention measures for non-conformities and implement tracking.The Company has formulated the Intellectual Property Management Manual and established a top-down intellectual property
management system in strict accordance with the Patent Law of the People's Republic of China the Copyright Law of the People'
s Republic of China the Enterprise Intellectual Property Management Regulations and other relevant laws and regulations. The Review
Company has prepared a series of procedural documents such as the Intellectual Property Document Control Procedure the management
Intellectual Property Acquisition Control Procedure and the Intellectual Property Risk Management Control Procedure which
actively drive all functional departments to implement the intellectual property management of R&D production procurement and
sales in accordance with relevant requirements. Regularly organize intellectual property management review review the implementation of management
policies objectives and management system put forward improvement suggestions and track the
implementation to ensure the suitability adequacy and availability of the Company's intellectual property
Intellectual property policy management system.Promote the upgrading and development of enterprises with technological innovation
and protect the advanced advantages of the industry with intellectual property
Key performance
Intellectual property objectives During the Reporting Period the Company did not have any incident related to infringement of intellectual
property of others.·Improve the intellectual property management system gradually formulate intellectual
property strategic plans and gradually realize a reasonable layout of patents
·Strive to achieve the industry-leading level in the creation application protection and
management of intellectual property
Intellectual property achievements
From daily operation risk warning to full-process monitoring of key technology R&D the Company guarantees intellectual property
in an all-round and multi-level manner. Through continuous increase in R&D expenditure we encourage innovation organize R&D
Intellectual property management teams to carry out technological research continuously produce innovative achievements with independent intellectual property
and enhance core competitive advantages.The Company continues to strengthen intellectual property management and build barriers to intellectual property protection. By
identifying and controlling intellectual property risks carrying out internal audits organizing review management and other Obtained during the
measures according to business development and market changes the intellectual property strategy is adjusted in a timely manner Key indicators Unit TotalReporting Period
to avoid infringement risks and escort the Company's industrial innovation and development.Number of patents Item 10 42
Intellectual property
management measures Number of invention patents Item 10 21
Risk
management Number of utility model patents Item 0 21
Formulate an intellectual property risk avoidance plan effectively identify and control the intellectual property Number of computer software copyrights Item 4 62
risks in each operation stage of the Company regularly check analyze and monitor the situation that may
infringe others' intellectual property and put forward a risk prevention plan.Number of registered trademarks Item 0 3
Note: The statistical scope covers Shenghang Group.
85 862024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Helping industry development
With an open and enterprising attitude the Company has always actively participated in various industry forums and professional
exchanges exchanged experience and jointly explored trends with global shipping elites introduced advanced concepts into the
Company and promoted its own optimization and upgrading in safe shipping green shipping intelligent shipping etc. The Company
has continuously improved its popularity and influence in the industry with professional strength and forward-looking vision.ExxonMobil IMT Shipowners Forum Case
Patent certificates obtained during the Reporting Period
On November 7 2024 the Company was invited to attend the
ExxonMobil IMT Shipowners Forum where hot topics such as
ship safety management emergency response and industry
innovation were discussed in depth to promote in-depth
cooperation and win-win results between shipowners and
energy suppliers. The forum helped the Company understand
and master the development trend and cutting-edge information
of the global shipping industry and provided important support
for the Company's strategic decision-making in ship
management safe operation and green shipping.Computer software copyright certificates obtained during the Reporting Period Customer service
improvement
Customer service
management system
The Company always puts customer satisfaction in
the first place builds a comprehensive high-quality
and efficient customer service system formulates the
Customer Management System and clarifies that the
Marketing Department is the centralized management
department of customer service responsible for
establishing customer files maintaining customer
relationships and handling customer complaints.Other departments are responsible for assisting the
Marketing Department in implementing relevant work
responding to customer needs in a timely manner
Trademark registration certificates and improving customer service quality and efficiency.
87 882024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Customer relationship maintenance
The Company is committed to maintaining good and stable customer relationships formulating customer maintenance plans
establishing customer visit records in daily customer visits and communication collecting summarizing and timely feeding back
customer opinions and suggestions. In addition the Company regularly conducts customer satisfaction surveys and issues
feedback forms to customers. The survey covers the timeliness of information feedback transportation service quality
professionalism and service attitude of business personnel etc. The customer satisfaction is reported and analyzed at seminars
and regular meetings of the Company and corresponding improvement measures are taken to improve service quality.Key performance
Customer wall
During the Reporting Period the Company collected a total of 12 customer feedback forms with a customer
satisfaction rate of 97.58%.Note: The statistical scope covers Shenghang Group.Shenghang Group won the title of "2024 Benchmark Logistics Service Provider" of Sinopec Case
Sinopec Chemical Logistics Co. Ltd. held the 2nd Logistics Service Provider Conference of Sinopec Chemical Logistics Co.Ltd. in Nanjing Jiangsu. The conference focused on the standardization and digital transformation of the chemical logistics
industry with the theme of "Building a Standard Foundation Setting Sail with Digital Intelligence and Going to a New
Journey of Chemical Logistics Development." At this conference Shenghang Group was awarded the honorary title of "2024
Benchmark Logistics Service Provider" by Sinopec for its "safe high-quality and efficient" logistics services.
89 902024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Customer complaint handling mechanism
Supply chain management
The Company's customer complaints mainly come from the results of ship voyage satisfaction survey and customer satisfaction
survey feedback customer complaints received in daily operation activities and customer opinions collected during customer
visits. After receiving the customer's complaint the shore-based department and the ship shall report to the Marketing Department
as soon as possible to start the customer's complaint handling procedure.Supplier management system
Preliminary
communication with Customer complaint
the complaining analysis Supplier assessment and screening
custome
The Company continuously optimizes the supplier management system and has established a rigorous and comprehensive supplier
Whether the responsible department can handle it assessment and screening mechanism. The Procurement Department the Maintenance Department and the Operation
Department respectively adopt different assessment and screening procedures for ship material suppliers ship repairers ship
Yes No agents and oil suppliers and comprehensively assess suppliers from multiple dimensions such as qualification delivery quality
The General Manager took the lead service capability and environmental protection. According to the assessment score and comprehensive performance the Directly solved by the
in establishing a complaint handling suppliers are divided into Class A (core suppliers) Class B (general suppliers) Class C (emergency suppliers) and Class D
responsible department team (unqualified suppliers). Only suppliers that meet the criteria will be included in the list of qualified suppliers.Develop a complaint handling Basic information of suppliers
program and formulate follow-up
improvement measures Key indicator Unit 2024
Reach a compensation plan and Total number of suppliers / 1471
sign a settlement agreement
Reply to the customer and confirm with the customer
that the processing is completed Total number of domestic suppliers / 1221
Implementation plan of
responsible department Total number of overseas suppliers / 250
Amount of overdue payments to SMEs Million RMB 0
Track the implementation of the
plan and customer follow-up visits
Note: The statistical scope covers Shenghang Group
Complaint statistics and summary Fill in major complaint cases
Filing Send to relevant departments
Customer complaints handling procedure
Key performance
During the Reporting Period the Company received 0 customer complaints in terms of quantity.
91 922024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Supply chain risk management Supply chain ESG management
The Company shall fully identify and assess the country risks industry risks and commodity-specific risks in the operation of the
supply chain establish the "three lines of defense" for risk review comprehensively strengthen the prevention and control of supply
chain risks and minimize the impact on the Company. Sustainable supply chain management
In order to promote the sustainable development of the supply chain and create a responsible transparent and innovative supply
chain ecosystem the Company has formulated the Measures for ESG Management of Suppliers which takes the ESG performance
Supply chain risk management measures of suppliers as one of the key factors in assessment and selection establishes an effective supervision mechanism and urges
suppliers to comply with ESG-related laws and regulations in the place where they operate to ensure the compliance of operation
activities. In addition the Company regularly reports the progress and effectiveness of ESG management in the supply chain to
Risk identification stakeholders and encourages and supports suppliers' innovative ESG practices.Identify ESG risks in the supply chain through questionnaires on-site audits third-party assessments etc.Important supplier ESG screening factors
Risk assessment
Evaluate the identified risks qualitatively and quantitatively to determine the risk level
Society
Environment Human rights and Risk mitigation labor rights working Corporate governance
Develop risk mitigation measures including improved supplier management processes enhanced Resource and energy hours compensation Governance structure
training increased transparency etc. efficiency GHG emissions occupational health transparency ethical
pollution control ecological and safety community standards
environment protection etc. participation etc. compliance business
Risk monitoring conduct etc.Establish a continuous monitoring mechanism to regularly track and assess the effect of risk
management measures
Supplier code of conduct
"Three lines of defense" for supply chain risk review The Company formulates the Supplier Code of Conduct assesses the supplier's operations related to its transactions through
regular audits and provides targeted correction or improvement guidance for suppliers who do not meet the specified
requirements; For suppliers who seriously violate the regulations the cooperation shall be resolutely terminated to ensure the
compliance and stability of the supply chain and maintain the Company's reputation.First line Second line Third line
Supplier Code of Conduct
The Business Department and The Risk Control Department The audit committee and audit
the Safety Supervision cooperates with domestic and post of the Board of Directors
Department are responsible for overseas legal teams to establish strengthen the prevention and Human rights and labor
auditing customers and a comprehensive and solid control of risks by improving
suppliers and improving the professional legal affairs and risk the internal audit system No harassment or
Company's work safety system. management defense line No child labor No forced labor discrimination
Appropriate wages and
working hours
93 942024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Environment health safety and
sustainable procurement Data security and privacy protection
Protection of health and safety Waste and emissions minimization
Management system
Energy efficiency improvement Recycled packaging
The Company pays attention to enterprise data security and customer information protection strictly abides by the Cyber Security
Law of the People's Republic of China the Data Security Law of the People's Republic of China and other relevant laws and
regulations continuously improves the data security management system aligned witht ISO/IEC27001 formulates the Information
Ethical and legal requirements
Security Management System the Company's Informatization Equipment Management System the Confidentiality Management
System and other systems and sets up a cybersecurity team to be responsible for the emergency response of network and
information system security strengthens information compliance management through data encryption access control and other
Compliance with laws and compliant operation Anti-bribery anti-corruption and
avoidance of conflicts of interest measures and builds a solid foundation for data security.Fair competition and antitrust Privacy information protection Trade compliance Key performance
During the Reporting Period the Company's total data security expenditure was 0.20million RMB; no data security
incident or customer privacy disclosure incident occurred.Supply chain ESG training Note: The statistical scope covers Shenghang Group.The Company regularly organizes procurement personnel and suppliers to carry out ESG training every year publicizes and
Key points of specific measures
implements ESG basic knowledge excellent practices in the industry and ESG technical capacity building so as to make the ESG Safeguard dimensions
philosophy deeply rooted in the hearts of the people. The Company continuously assesses and optimizes training content and
methods to ensure that training effectiveness is consistent with ESG best practices and adapts to changing market needs and *The R&D Center centrally manages the installation of office computer operating systems
regulatory environment. and application software to prevent illegal software intrusion;
*Provide professional maintenance and management for computer rooms and network
equipment to ensure stable operation of equipment and data security;
Technical protection
Procurement management *Set LAN Permission to prevent illegal network connections.*Operators enter and modify data strictly according to specifications to ensure data
The Company strictly follows the Management Procedure for Procurement and Supply of Marine Materials to ensure the accuracy and security;
normalization and standardization of ship procurement. As the main management department the Procurement Department
manages the full process from material demand receipt to supplier selection and assessment to material delivery. By standardizing *Back up important data to mobile storage devices and monitor them under the
the material procurement process the timely supply and reliable quality of marine materials are effectively guaranteed and a solid supervision of the R&D Center to prevent data loss;
foundation is laid for the safe and efficient operation of the Company's ships. Data management
*Without authorization no one may access or disclose customer data files.Material procurement process
*Each department shall designate a person to use the computer and keep records;
Quotation
Material application Warehousing Supplementary
Material Comparison and inquiry management supply/return *Real-name management of group members;
application Order Approval *Regularly conduct system operation and information security training for employees;
filling and Material delivery Handing over
submission Material application Nonconforming tracking and invoices and Personnel management *When an employee leaves the Company the Research and Innovation Center will
review procurement filing Material Reportdelivery promptly process the relevant account information.In terms of green procurement the Company actively signed environmental protection agreements with suppliers encouraging *Information release strictly follows approval procedures to ensure that the information is
suppliers to use environmental protection products and recycle packaging to reduce the impact on environment during the legal and compliant;
operation process; In the procurement process the Company actively implements the concept of green procurement giving *Regulate the use of office computers and prohibit browsing irrelevant websites;
priority to the procurement of environmentally friendly products and energy-saving and efficient materials vigorously reducing the
procurement of disposable supplies reasonably reducing the quantity of material procurement and promoting the green Usage management *The purchase maintenance replacement and scrapping of information equipment shall
procurement process with practical actions to help sustainable development. be carried out according to the procedures.
95 962024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Emergency incident management Data security and privacy protection training
The cybersecurity team of the Company organizes an information security risk assessment covering all vessel-to-shore networks Shenghang Group continues to carry out cybersecurity & data privacy training to improve the awareness of data security and
once a year and formulates a security strategy combining active defense and defense-in-depth based on the identified risks and privacy protection for all employees master the relevant knowledge and skills and maintain the security of the Company's data
the established management system to ensure data security. In addition the Company has formulated the Cybersecurity assets.Emergency Response Plan to ensure that it can respond quickly and effectively in the face of data security emergencies minimize
the negative impact of incidents on the Company's business operations and data security and ensure the continuity and stability Cybersecurity Training Case
of the Company's operations.On September 13 2024 Shenghang Group organized a training on network information security which was
Cyber attack prevention exercise attended by a total of 117 people. The training covered the regulation explanation and suggestions for safe Internet Case
access aiming to improve employees' awareness of network security and enhance their network security skills.During the Reporting Period Shenghang Group formulated annual emergency drill plans for all ships and carried
out emergency drills to simulate various scenarios such as computer viruses and file loss on the ships. Quickly
report security incidents on board carry out emergency response and carry out follow-up assessment and
summary and improve the Company's emergency response capability to cyber attacks by simulating the complete
process of emergency incidents.Cybersecurity training
Key performance
During the Reporting Period the Company conducted a total of 14 information security related training sessions
with 197 participants.Note: The statistical scope covers Shenghang Group.
97 982024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
06 Improving the safety 101 Implementing safety management system 109management measuresIdentification of risks and opportunities 103Build a solid safety 104risk defense lineStrengthening safety 108 ENSURING SHIPPING SAFETY
objective management
99 1002024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Improving the safety Safety management organizational structure
management system General Manager
Shenghang Group has always been guided by the management policy of "maintaining health ensuring safety preventing pollution DPA/Safety
and customer first." According to the Administrative Rules of the People's Republic of China for the Safe Operation of Ships and Director
for Pollution Prevention and other relevant conventions laws and regulations combined with and considering the rules guidelines
and standards of IMO regulatory authorities and shipping industry organizations a series of refined management systems such
as Safety Quality Management Manual Safety Management System and Emergency Manual have been formulated. By
implementing the safety management system that meets the ISM/NSM rules standardized safety management has been realized
the awareness of safety red line of crew has been established the safety management level has been continuously improved and
the high-quality development of the Company has been escorted by high-level safety.During the Reporting Period 3 masters and 1 ship of the
Company were awarded the titles of "Integrity Captain" Ship
and "Quality Ship" respectively.Quality Ship Certificate
Safety system certification
Key performance
During the Reporting Period the Company's work safety expenditure amounted to RMB 20.07million; a total of 4
According to ISM regulations the Company and its ships have
employees were reported to have suffered work-related injuries resulting in 117.50 lost workdays with a lost time established a safety management system that meets the
0.63 0.94 requirements and have obtained the Certificate of Conformity injury frequency (LTIF) of and a total recordable case frequency (TRCF) of . (DOC) Ship Safety Management Certificate (SMC) and the
Level I Compliance Certificate for Work Safety Standardization
Note: The statistical scope covers Shenghang Group. Construction of Transportation Enterprises. Meanwhile annual
audits are conducted as required to standardize and improve
the safety management system.Safety management structure Level 1 Certificate of Conformity for Standardization
of Safety Operation of Transportation Corporations
The Company shall establish the Work Safety Committee as the leading organization for work safety. The General Manager is the
first person responsible for work safety responsible for establishing safety policies approving system documents and coordinating
safety work and appointing DPA to be fully responsible for the implementation of the Company's safety management system and
supervising and inspecting various safety and pollution prevention activities.The Company strictly implements the "one post two responsibilities" system decomposes and implements the work safety
responsibility system to each department and ship signs the Work Safety Responsibility Statement at all levels establishes the
work safety responsibilities of personnel at all levels incorporates safety indicators into the performance assessment of employees
regularly implements assessment distribution and performance assessment of the implementation of departmental safety
indicators and encourages ship and shore employees to actively participate in and effectively do a good job in work safety.
101102
Finance
Manager
Human Resources
Manager
Cybersecurity
Manager
Procurement
Department
Safety Supervision
Department
Crew
Department
Technical
Department
Marine
Department
Operation
Department2024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.Identification of risks Opportunity Potential finan- Affected Possibility of
Category Opportunity descriptionand opportunities cial impact time range occurrence
The application of new technologies in the field of
Technological shipping safety such as intelligent monitoring and big Cost decrease
Shenghang Group focuses on building a professional and efficient fleet and improving the level of safe operation. It regularly conducts Innovation Long data analysis install AIS and ECDIS systems and use big and revenue High
hazard identification and risk assessment of operation activities according to procedures prepares a list of ship risks and implements Opportunities termdata to monitor the status of equipment to improve increase
management and control consolidates shipping safety and service advantages and strengthens strategic competitiveness.safety monitoring and early warning capabilities.Risk Potential Affected Possibility
category Risk description financial time of occur- Coping strategy
impact range rence
Ships often encounter severe weather Strengthen cooperation with
such as typhoons and dense fogs as meteorological agencies equip
Rising
well as complex sea conditions such advanced meteorological
costs Short to
Natural as abnormal sea currents icebergs monitoring equipment and
and medium High
risk and submerged reefs which may formulate navigation plans in
falling term
cause ship damage cargo loss advance; Ensure insurance Build a solid safety risk defense line
revenues
casualties and legal disputes and coverage; Regularly carry out
compensation issues. emergency drills.Shenghang Group has established and improved a dual risk prevention mechanism to ensure the effective connection and
Improve the risk prevention integration of risk classification control hidden danger investigation and management precise monitoring of hazard sources and
mechanism strengthen the improvement in risk resistance capabilities.maintenance and management
The loss of ships and goods and huge
of ships improve the
Repu- compensation caused negative public Decrease Long management level of cargo
tation opinion which damaged the in term Low transportation establish
risks Company's reputation resulting in revenue
emergency response plans Risk management process
customer loss and business decline.strengthen crisis public relations
management and continuously
Focusing on the standardized construction of safety risk management the Company has formulated the Hazard Identification and
improve service quality.Risk Classification Control Procedure and the Risk Assessment Procedure to guide the identification assessment and control
measures of risk sources and dynamically adjust the risk level and control measures to prevent and mitigate various safety risks
Regular training on laws and and impacts.regulations for crew and
management; Implement a
IMO and national governments have
Rising strict safety management set strict safety standards and trade Operation process Specific content
costs system; Pay close attention to
Legal regulations such as the risk of fines Long changes in domestic and
risk ship arrest and market access
and Low
term
falling regional regulations and adjust restrictions for violation of the
Company policies and
relevant regulations. revenues
operating procedures in time
to meet new legal *Divide the work units and determine the scope of hazard identification.requirements.Division of activities
Training must be fully carried
out before boarding the ship
Violations by seafarers such as to ensure familiarity with the
inexperience unskilled operation or Decrease safety system and necessary *Use sectoral area analysis to identify hazards supplemented by questionnaires and
Human Short
fatigue driving resulting in damage to in Low knowledge and skills; Strict on-site observations;
risk term
ship equipment or navigation revenue rules and regulations shall be *It comprehensively covers factors such as the working environment equipment and
accidents. established to prohibit facilities hazardous substances in the premises and areas and considers the past
seafarers from operating
Hazard identification present and future tenses and the normal abnormal and emergency states.against regulations.
103 1042024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
*Safety risk assessment includes initial risk assessment and control risk assessment Ship safety Each ship shall organize the Engine Department and the Deck Department to carry out monthly safety
and adopts a risk assessment method that combines qualitative and quantitative self-inspection self-inspection and implement the "Ship Navigation Safety Inspection" every quarter.methods;
Company safety
*Implement risk assessment steps in accordance with the Risk Assessment Procedure. The General Manager and all management personnel shall visit the ship regularly for inspection.Risk assessment inspection
Special
Carry out inspection activities including seasonal special inspection equipment special
inspection
inspection special inspection operational special audit etc.of ship
Inspection by Inspection and testing shall be carried out by external organizations such as oil companies
*Calculate the likelihood and consequences of a hazard and use the risk matrix to external units and competent authorities professional organizations third-party certification organizations and
determine the risk level.Confirmation of professional testing customer inspection.risk level
Real-time Spot check closed-circuit television (CCTV) intelligent monitoring and other data to monitor the
monitoring safety of ship navigation watchkeeping.*A five-level control system is implemented and risk control methods at different
Meanwhile the relevant responsible departments and personnel shall carry out inspections in accordance with the relevant
levels are determined based on factors such as risk level required control resources
procedures during the departure voyage and arrival of ships. In case of any non-conformity the responsible department shall
control capabilities and the complexity of control measures
Risk classification record the specific situation in detail at the first time report it to the corresponding management department in time and deal
management and control with it in accordance with the rules and regulations of the Company to ensure the safety and standardization of ship operation
minimize potential risks and ensure the safety of ship operation and personnel.*Regularly review risk assessments and risk assessment manuals and make additions
deletions or improvements when necessary;
Tracking updating and *Conduct a comprehensive review of fleet and shore-based risks at least once a year. Prior to departure During the voyage Prior to arrival
review of hazard sources
All preparations for ship According to the Instructions for Preparations (such as cabin
sailing shall be implemented Daily Operations of Ships washing equipment
in accordance with the Underway etc. the ship safety inspection data preparation
Instructions for Preparations system and QHSE etc.) shall be made before
before Ship Entering and implementation shall be arrival in accordance with the
Leaving the Port and the supervised and inspected. Instructions for Operation
Instructions for Operation Depending on the storage before Ship Arrival to ensure
Investigation of before Ship Sailing. requirements of different the safe arrival of the ship.cargoes the cargoes shall be
potential safety hazards managed through continuous
tracking and monitoring.The Company shall establish and improve the QHSE
management and inspection system for ships formulate
the Instructions for Hazard Investigation and Control
Instructions for Special Inspection of Ships and other
regulations standardize the investigation and control of
potential work safety hazards strengthen the normal Key performance
rolling comprehensive inspection of ships supervise the
implementation of closed-loop management of During the Reporting Period the Company carried out a total of about 5092 safety hazards inspections
rectification and effectively eliminate potential risks. and the rectification rate of hidden hazards was 100%.Note: The statistical scope covers Shenghang Group.
105 1062024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Safety emergency management
In order to efficiently respond to various ship and shore-based emergencies the Company shall establish an emergency response
team formulate the Emergency Manual and other emergency management measures clearly identify and establish corresponding
response procedures for a series of emergencies such as fire and explosion ship collision ship grounding ship loss piracy and
man overboard and build an emergency management system in all aspects. Meanwhile the Company formulates emergency
training or drill plans every year organizes ship-shore training drills for various emergency situations and assesses the
effectiveness of the drills to test the availability of emergency procedures and the actual ability of participants so as to ensure that
they can respond quickly and carry out effective cooperation in emergency situations.Ship-shore emergency response procedures
Ship
"NAN LIAN 202" abandonment drill "NAN LIAN 201" emergency anchoring drill in
heavy weather
Commander in
Chief Key performance
During the Reporting Period the Company conducted a total of 2844 safety emergency drills including 474 oil
Shipowner/Charterer/Cargo
Media Emergency Response Team of Owner/Insurance/Finance spill drills and 4 ship-shore joint emergency drills.the Company
Emergency Response Center Note: The statistical scope covers Shenghang Group.Tenant's agent Legal Advisor/Crisis Advisor
HSE red and yellow line management
Flag state Classification Society Search and Rescue Travel Crew Dependents Center/Decontamination Response contractor In order to deepen the energy efficiency of safety governance the Company has formulated and implemented the Regulations on
Port state Ship Repair Yard Service Crew Service Provider Organization/Chemical of the Company at Red and Yellow Lines of HSE Management accurately delineated the safety exclusion zone and warning rectification baseline with
Specialist/Help and corresponding level
Coastal state Equipment Manufacturer Provider Protocol Doctor Towing Service Provider the "red and yellow lines" simultaneously established a systematic discipline and punishment mechanism established a
closed-loop management and control mechanism of "training and publicity–dynamic monitoring–accountability and
punishment–case notification" and continuously strengthened the "red line" awareness and "bottom line" thinking of all employees
in work safety.Strengthening safety
objective management 0 0damage pollution
Taking "three zeroes" as the ultimate goal the Company has formulated
annual work safety management objectives refined the accident rate
Ultimate goal
such as ship collision grounding and rocking the accident rate of
work-related injuries ship inspection and other safety indicators and
incorporated them into the annual assessment to build a solid barrier for
"NAN LIAN 201" abandonment drill "SHENG HANG HUA 5" fire drill work safety. 0
accidents
107 1082024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Implementing safety Cargo management
management measures The Company focuses on the field of bulk liquid chemical transportation strictly follows the classification and operation process regulations of hazardous goods in the MARPOL Convention and IMDG Code and is committed to providing customers with safe
and reliable shipping services. The Company has established a sound cargo safety management system and has formulated
Shenghang Group always adheres to the high standards of safe operation closely cooperates with the fleet to implement various detailed operating procedures and specifications for the entire lifecycle of the loading storage transportation and delivery of
navigation management regulations and takes multiple measures in key areas such as emergency management extreme weather dangerous goods to ensure that each step is followed and the safety management responsibility for dangerous goods is effectively
prevention and avoidance hazardous cargo management and pirate attack prevention to ensure the safety of ships cargoes and fulfilled. Meanwhile the Company actively invests resources in professional training for seafarers to improve their cargo operation
crew on board. skills and safety awareness to cope with various complex cargo transportation scenarios.Cargo Handling Manual
Visual safety management
Liquid Cargo Handling Manual Special Liquid Cargo Cargo Tank Cargo Handling Manual
Handling Manual Washing Manual for Gas Carriers
The Company integrates visual management with safety management
vigorously carries out standardized construction of work safety and sets up
signs and safety boards in nacelle and workplaces living areas office areas
and other scenes. Through graphical signs and process visual boards it
realizes risk early warning operation specifications and emergency
guidance in the whole area. Prevention of pirate attacks
In order to effectively ensure the safety of ship navigation and protect the lives and property of goods and crew the Company has
formulated the Emergency Instructions for Ship Piracy and Hijacking Prevention regularly organizes each ship to carry out
Safety dashboard security-related drills and maintenance of security equipment and conducts regular internal audits and reviews of the ship security
system to continuously optimize the ship security system.Lockout/tagout Anti-piracy measures
Best practice case of a ship Case
Shenghang Group actively implements the
lockout/tagout system in ship safety Route planning *When designing routes try to avoid pirates and hazardous areas as much as possible.management optimizes the isolation of
dangerous energy and the prevention and *Before leaving the dock or weighing anchor and setting sail the captain arranges anti-piracy Pre-departure
control of misoperation strictly implements the safety inspections for all departments and conducts a comprehensive check of all areas where inspection
lockout/tagout requirements for ship mechanical people may hide.and electrical equipment and related working
areas and indicates the reasons for locking *When sailing in waters prone to piracy assign personnel to stand guard on security duty and Navigation alert
completion time and responsible person so as keep an eye out for approaching suspicious ships.to improve the safety of ship operation.Communication *Ensure that communication equipment is in good condition and maintain contact with the
guarantee Company nearby ships coastal governments and other agencies.* Organize anti-piracy drills close embarkation routes request escorts and reinforce the ship's
Security zone settings dedicated citadel before the ship enters the maritime areas defined as high-risk by international
security organizations.*The stern of the ship is illuminated with strong lights to prevent pirates from boarding the ship;
Lockout/tagout and signature Equipment protection Harden defensive doors and equip them with facilities such as razor barbed nets.Emergency
preparedness *Formulate emergency plans and conduct anti-piracy emergency drills.
109 1102024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Anti-piracy drill Case
Key performance
On June 23 Shenghang Group conducted an anti-piracy
drill aboard the "SHENG HANG HUA 13." The drill simulated During the Reporting Period the success rate of typhoon and flood control was 100%.the scene of a pirate attack. After the alarm was sounded
the crew quickly acted according to the emergency plan to
complete emergency communications defense layout and
other work. The drill effectively enhanced the crew's safety
awareness and emergency response capabilities and
further strengthened the shipping safety assurance system.Port state and flag state inspections
Shenghang Group attaches great importance to the safety and compliance of ship operation strictly follows industry norms and
international standards implements the Instructions for Ship Acceptance of PSC (FSC) and On-site Supervision and Inspection and
Key performance cooperates with the port state competent authority and relevant parties to carry out various inspections and surveys on the ship
to ensure that the ship fully complies with international safety standards and regulatory requirements.During the Reporting Period
no security incidents occurred
within the Company.Indicator Unit 2024
Ships undergoing PSC inspections Ship 26
Anti-piracy equipment
Ships detained in PSC inspections Ship 0
Response to severe weather
Ships undergoing FSC inspections Ship 61
Adverse weather is one of the major risks faced by shipping companies. The Company strictly regulates the navigation operation
of ships in bad weather pays close attention to real-time meteorological and sea conditions and early warning information
strengthens the maintenance and duty of ship equipment and implements the requirements for operation restrictions in bad
Ships detained in FSC inspections Ship 0
weather. Meanwhile the Company has formulated a perfect emergency plan to effectively cope with typhoons dense fog and other
severe weather ensure the navigation safety of ships in an all-round way and reduce the impact of severe weather on operations.Management system Key points of operation Ships undergoing SIRE inspections Ship 54
Tsunami Emergency *Ships sailing on the sea are not allowed to return to port or dock and should immediately
Instructions head to deep sea areas. SIRE inspection pass rate % 100
*Ships implement the typhoon prevention principle of "prevention-focused prevention-resistance
integrated early-stage precautionary measures and operational flexibility preservation."
Instructions for Ships
*Take typhoon prevention measures such as anchoring against typhoon wharf against typhoon Ships undergoing CDI inspections Ship 5
Against Typhoons
buoy against typhoon typhoon avoidance and resistance at sea communication and weather
reporting.*Check watertightness and secure cargo before sailing; CDI inspection pass rate % 100
Instructions for Ships
Maneuvering in Heavy *Adjust the ship's speed and heading avoid beam waves and use the steering gear and anti-roll
Waves device to improve maneuverability.Note: The statistical scope covers Shenghang Group.
111 1122024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Safety culture development
The Company improves the ship-shore safety management level through regular training deeply cultivates safety culture in various
forms such as symposiums safety analysis meetings and seminars and improves the work safety knowledge and practical skills of
all employees.*Conduct pre-job and on-the-job safety education and training for shore-based
Safety training departments and ships by classification.*The online training platform shall be applied to provide employees with more
convenient and extensive training channels.Senior crew Hold quarterly senior crew seminars to exchange and train on safety awareness
seminar safety/human factors and security matters cybersecurity accident case analysis etc.Work safety During the 62-day work safety month activities such as ship-shore joint drills safety
month audits fire drills and ship inspection and maintenance were carried out.Talks during Informal meetings are held with the crew during ship visits to encourage and actively
ship visits participate in safety management and to assess crew safety awareness.Quarterly
Newsletter A safety management journal is issued quarterly.Quarterly Newsletter
Key performance
During the Reporting Periodthe Company conducted a total of 71 safety education and training sessions with
1041 participants. The total duration of safety education and training was 2151.60 hours and the safety
education and training coverage rate reached 100%.Note: The statistical scope covers Shenghang Group.Kick-off meeting for work safety months SIRE2.0 training
113 1142024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
07 Labor rights and interests management 117Occupational health management 125Employee training and development 129 PROTECTING EMPLOYEES' Harmonious society building 134
RIGHTS AND INTERESTS
115 1162024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Labor rights and interests
management Key performance
During the Reporting Period the Company signed labor contracts with all employees; no incidents of child labor
forced labor discrimination harassment or bullying occurred.Shenghang Group always respects and protects the basic rights of every employee effectively safeguards the legitimate rights and
interests of employees in all aspects of recruitment and daily management and is committed to creating a fair and just operational
environment for all employees.Employee recruitment and employment
Labor human rights protection In accordance with the Labor Law of the People's Republic of China the Labor Contract Law of the People's Republic of China
the Social Insurance Law of the People's Republic of China and other laws and regulations Shenghang Group has established a
series of systems such as the Human Resources Management System and the Employee Handbook following the principles of
Shenghang Group is committed to strictly abiding by the Maritime Labor Convention (MLC) 2006 the Labor Law of the People's fairness justice equal competition and merit-based employment. It has clarified the management of shore-based recruitment and
Republic of China and other domestic and foreign labor conventions and laws and regulations respecting the rights of employees employment labor contract management shore-based personnel change management resignation management attendance and
to free association and collective bargaining resolutely opposing discrimination harassment forced labor and employment of child leave management etc. implemented the labor contract system and employment system for all employees standardized the
labor and setting up the Human Rights Reporting and Complaint Procedure to improve the complaint mechanism for human rights employee recruitment and entry process and created an inclusive and equal opportunity operational environment.issues.Employee diversity
Implement the working hour system in accordance with the Labor Law and the relevant The Company adheres to the principle of employing talents only actively implements the diversification and internationalization
requirements to ensure reasonable rest time for employees;； strategy treats employees of different genders races skin colors reproductive status ages regions and religions equally and is
No forced labor committed to building a workforce integrating diverse backgrounds to jointly promote the sustainable development of the
Suppliers and partners are required to comply with the Supplier Code of Conduct which Company.explicitly prohibits forced labor.Require suppliers and partners to comply with the Supplier Code of Conduct which Composition of shore-based employees
explicitly prohibits the use of child labor;
No child labor Identity information is reviewed during the recruitment and deployment process to Indicator 2024 (person)
ensure that candidates under the age of 18 are not employed engaged or sent to work
on Company ships. Total number of employees 167
Disabled employees 1
In the process of recruitment and employee appointment the Company treats different
races genders ages marital status disabilities and religious beliefs equally provides
No discrimination 8 persons 4.79%
equal employment positions and development opportunities and eliminates any form 53 persons 31.74%
of discrimination. 43 persons 25.75%
Number of Male Number of
Senior
Anti-harassment Establish a "Workplace Harassment and Bullying Prevention Policy" that explicitly employees employees by management
and anti-bullying prohibits any form of harassment and bullying in office areas and any work-related by gender Female rank Middle
premises. 114 persons management
116 persons Grass-roots
68.26% 69.46% employees
117 1182024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
8 persons 4.79%
35 persons20.96% 189persons 20.82% 144persons 15.86%
46persons 27.54% 34persons 20.36%
Sales Under 30 years old (exclusive)
16 persons 9.58% Number of Technology
employees Number of 30-40 years old (including 30 excluding 40)
by profes- Finance Number of crew by age
employees 40-50 years old (including 40 excluding 50)sion
Administration by age 50 years old and above
108 persons 64.67% 262persons 28.85% 313persons 34.47%
38persons 22.75% 49persons 29.34%
7 persons 4.19%
Under 30 years old (exclusive)
Shore-based employee turnover
Master's degree or 30-40 years old (including 30 excluding 40)
above
Number of 40-50 years old (including 40 excluding 50) Indicator 2024 (%)
employees by Undergraduate
educational 50 years old and above
background Junior college or Employee turnover rate 7.04
73 persons below
Turnover rate by gender
43.71% 87 persons 52.10%
Male 8.91
Female 2.44
Turnover rate by age
30-40 years old (including 30 excluding 40) 4.44
Crew composition
40-50 years old (including 40 excluding 50) 11.76
Indicator 2024 (person)
50 years old and above 11.76
Total number of crew 908
Labor dispatch crew 361 Note: The statistical scope of shore-based employee turnover covers Shenghang Group. Shenghang Haoyuan is not included in the statistical scope
due to adjustments made to the company's personnel positions as a result of the July 2024 acquisition.
53persons 5.84% 41persons 4.52%
Master Number of
Number of Bachelor degree or
crew by
crew by Officers above
educational
rank Ratings background Junior college or
below
341persons 37.55% 867persons 95.48%
514persons 56.61%
119 1202024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Recruitment of diversified talents
Women's Day activities Case
Shenghang Group has clearly stipulated the content of shore-based recruitment and employment management in the Human
Resources Management System formulated a talent absorption plan in line with the Company's development strategy planned
recruitment strategies and adopted diversified recruitment channels and employment models actively developed a new pool of
high-quality talents and recruited talents from all walks of life. In 2024 the Shenghang Group Union
organized all female employees to visit
Key performance Nanjing Xiangshan Lake Park on the
occasion of the International Women's
Day so that female employees can fully
During the Reporting Period the Company recruited 42 new shore-based employees through social recruitment feel the good atmosphere of "Happy
Work Happy Life."
including 18 female employees and 24 male employees.Shenghang Group's Women's Day celebration activities in 2024
Compensation and benefits
Compensation performance
Shenghang Group has always been committed to building a scientific and reasonable compensation and performance appraisal
system to promote the realization of the Company's strategic goals while protecting the rights and interests of employees and
stimulating their enthusiasm. The Company's compensation design is closely aligned with the strategic objectives adheres to the
principle of differentiation and openness and builds a reasonable compensation sequence based on employees' work skills job
requirements operational environment and strength to ensure fair and reasonable compensation distribution.Shandong Jiaotong University Job Fair Campus recruitment seminar Compensation structure for shore-based employees
Determination basis Compensation item
Care for female employees *Standard salary
Position and qualifications
Shenghang Group attaches great importance to the protection of employees' *Non-salary income
rights and interests especially the respect and care for female employees. In
accordance with the relevant laws and regulations the Company shall set up
exclusive holidays for female employees to effectively protect the legitimate
rights and interests of female employees during special periods. In addition the
Company regularly organizes exclusive activities for female employees every Variable income *Performance assessment results
year with rich and diverse activities which fully reflects the Company's
humanistic care for female employees.
121 1222024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Comprehensive compensation structure for crew
Determination basis Compensation item
Exclusive Long-term service award reimbursement of officer certificate
*Basic salary overtime pay annual leave payment and health food allowance benefits training expenses inland river crew leave benefits crew meal Position and qualifications
*Travel allowance expenses meal expenses of outsiders
Variable incomet *Performance assessment results
Special Self-repair service fee cabin cleaning fee voyage reward
Crew benefits self-berthing and self-pilotage fee ship assessment award
The Company shall set up a performance appraisal committee to organize all parties to reach a consensus on the strategic action and ship assessment reward fee
plan and performance objectives regularly assess the appraisal work adjust it in time according to the development and the actual benefits
situation of each department and balance the performance objectives of each department.Subsidy Subsidies for concurrent power supply subsidies for loading
benefits special goods subsidies for staffing differences and subsidies
for personal tax
Four assessment grades shall be set up: excellent good to be improved and unqualified.Performance Accurately pay compensation according to the performance assessment level of employees
assessment give full play to the incentive and guiding role of performance assessment and promote
employees to improve their work efficiency and quality.The Company sets up a performance grievance mechanism. If employees have any objection to Key performance
the assessment results they can file grievances in writing with the Human Resource
Grievance Department. The Human Resources Department is responsible for investigation and
mechanism coordination and making suggestions and the Performance Appraisal Committee is the final During the Reporting Period the social insurance coverage rate of employees was 100%; the number of paid
handling body.annual leave days per capita for Shenghang Group's shore-based employees is 6.6 days.Welfare system
In addition Shenghang Group implements an equity incentive plan to establish a long-term incentive mechanism to attract talents
As an important part of the Company's operation the welfare system is a concrete embodiment of the Company's culture and
to stay. During the Reporting Period the conditions for lifting restrictions such as part of the performance of the restricted stock
values. Shenghang Group emphasizes employee care actively improves the welfare system and provides a solid guarantee for
incentive plan in 2021 were met and the Company handled the lifting of restrictions for eligible objects. The plan fully mobilized
employees to work at ease.the enthusiasm of the Company's directors senior officers middle managers and core business personnel and helped the
Employee benefits Company's long-term development.Statutory benefits
Social pooling insurance and housing provident fund
Employee democratic management
Vacation benefits
Statutory holidays marriage leave maternity leave/abortion leave pregnancy check-up leave
breast-feeding leave paternity leave annual leave funeral leave sick leave and work-related injury leave
Shenghang Group attaches great importance to the exchange and communication
Work benefits with employees and has established a diversified and smooth communication
Working meals communication subsidies and work clothes channel. The Company encourages employees to fully participate in the
decision-making process of the enterprise through the labor union and workers'
Care benefits congress and fully solicits the opinions of employee representatives in the process
Wedding or maternity gift money hospitalization condolence payment and funeral condolence payment of formulating revising negotiating and deciding the rules and regulations involv-
ing the rights and interests of employees so as to effectively protect the rights of
Holiday gift money employees to know participate express and supervise.Gift money for Spring Festival Dragon Boat Festival and Mid-Autumn Festival and gift money for female
employees on Women's Day The Company shall set up a complaint and reporting procedure and the feedback
of employees shall be followed up by special personnel and the relevant informa- Employee reasonable suggestion box
Other benefits tion shall be kept strictly confidential to prevent retaliation against employees who
Regular physical examination file complaints and reports and those who assist in the investigation. Meanwhile the Company has set up an employee suggestion
box to actively adopt employees' suggestions to promote the better development of the Company.
123 1242024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Brief Schematic Diagram of Crew Complaint and Reporting Procedures Occupational health system
Seafarer's preferred complaint route Ship department head
(chief mate chief
engineer etc.)
The Company adheres to the principle of "people-oriented prevention-oriented
unified leadership hierarchical responsibility rapid response and coordinated
Must reply to the If the seafarer's response" and has formulated a detailed occupational health management
seafarer within 1 complaint cannot be system strives to improve the professional quality and management level of all
working day resolved report it to employees and conducts regular internal audits and management reviews to
the master immediately ensure the availability and continuous improvement of the management system.Shenghang Group has passed the ISO45001 certification of occupational health
If the seafarer is not satisfied with the department head's and safety management system.reply he may complain to the master or complain directly Shenghang Group's ISO45001 Certificate
to the master
Master
If the master cannot solve
Complaining Must reply to the the seafarer's complaint seafarer within 3 report it to the Crew Risk and opportunity identification and countermeasures
seafarer working days Department of the Company within 2 working days
The main business of Shenghang Group is the water transportation of liquid chemicals. The crew needs to work on the ship for a
If the seafarer is not satisfied with the master's reply long time facing adverse environmental factors such as noise vibration high temperature high humidity and mental health
he may complain to the Company or complain directly
Crew Department of pressure and there is a risk of chemical exposure.to the Company
the Company
Accept complaints Possibility
and reports Risk Impact of occur-
factors Risk description period Description of financial impact Countermeasuresrence
1.Increased medical expenses:
Must reply to the diagnosis treatment and
seafarer within 5 Cooperate with the Regular physical examination; rehabilitation costs for seafarers
working days competent equipped with professional
authority to solve Hazard- Storage who are ill. 2. Compensation costs: protective equipment; all
problems ous transportation use Long possible work injury compensation High operations shall be carried out in
term and legal compensation. 3.If the seafarer is not satisfied with the Company's response he may chemi- and leakage risks of strict accordance with the
complain to the competent authority or complain directly to the cals hazardous chemicals. Production loss: The reduction in specifications.competent authority capacity caused by sick crew
Competent authority members leaving their posts
affects business income.Seafarers need to Regularly organize psychological
Complaint flowchart work on the ship for a counseling lectures and Production losses: losses
Mental long time with limited psychological counseling services;
Long caused by work errors due to
health communication with Low improve on-board entertainment
term psychological problems the outside world and facilities and carry out recreational
resulting in damage to goods
mental health activities; arrange navigation tasks
navigation accidents etc.pressure. reasonably.Occupational health When the ship is
sailing in summer or
management High Improve the ventilation and cooling tropical areas the tempera- system of the ship to ensure the high temperature and
ture and Short Medical expenses; air circulation in the cabin; provide humidity in the cabin
high Medium heatstroke prevention and cooling
In accordance with the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases the are easy to cause heat term
humidity production loss. drinks and medicines; adjust the
International Medical Guidelines for Ships and the Medical First Aid Guidelines for Dangerous Cargo Accidents the Company has exhaustion heatstroke
environ- operating time and strength in high
formulated the Human Resources and Health Manual the Regulations on Management of Employee Medical Treatment and etc. which affects the
ment temperature environment.Occupational Health and the Instructions for Crew Physical Examination and Treatment of Diseases and Injuries and is committed health and work
to providing more perfect protection for employees' health with the goal of "zero injury." efficiency of the crew.
125 1262024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Occupational health risk management Protection with safety equipment
The Company shall set up an emergency leading group for occupational disease prevention and control formulate emergency In strict accordance with the relevant national and industry standards the Company is equipped with necessary labor protection
plans and occupational disease emergency response mechanisms provide perfect medical and protective materials and regularly equipment special protective equipment medicines and medical equipment and regularly updates and inspects them fully
assess revise and improve the plans to ensure rapid response when incidents occur and do a good job in occupational health risk implements occupational health protection work and ensures the safety of employees in various operating environments.management. Meanwhile the Company actively strengthens the publicity and education of occupational disease prevention and
control knowledge to improve employees' self-protection awareness and ability.Occupational hazards monitoring
The Company is responsible for formulating and
implementing the Occupational Health Monitor-
ing and Reporting System for Nanjing Sheng-
hang Employees and effectively carrying out
occupational disease detection. The scope of
occupational health monitoring includes chemi-
cal factors biological factors and physical
factors and the monitoring period is set accord-
ing to different types of work. According to the
monitoring results the Company shall timely Protective equipment
prevent control and eliminate occupational
hazards to protect the health of employees.Crew health monitoring platform
Occupational health training and publicity
Occupational health examination
The Company attaches great importance to the physical and mental health of employees regularly carries out various forms of
health knowledge and skill training publicity and education and enhances employees' health knowledge awareness of
The Company regularly conducts occupational health examinations and the Human Resources Department and Crew Department occupational hazards and protection awareness and ability by creating activities expanding publicity and positive feedback.conduct statistical analysis based on the results of occupational health examinations of employees of the Company and formulate
targeted preventive measures. Meanwhile the Company has established cooperative relations with medical institutions to ensure
that sick employees receive timely and effective treatment.Subject Content
Shore-based employees Organize regular occupational health examinations
Strict Implementation Requirements of the Maritime Administration and
MLC2006 Convention:
1.Domestic trade seafarers shall hold a seafarer's health certificate valid for 2
Chemical tanker crew years during their stay on board.
2.Foreign trade seafarers shall hold a seafarer's health certificate valid for 2 Rescue equipment use training First aid instructions Mental health training
years and a health and quarantine certificate valid for 1 year during their stay
on board.
127 1282024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Occupational health management indicators
Key performance Unit 2024
Occupational health examination coverage % 100
Occupational hazards pass rate % 100
Seven habits of highly effective Departmental job responsibilities training Onboarding training for new
Cases of new occupational diseases Case 0 people training employees
Work-related injury insurance expenditure Million RMB 0.28
Training of shore-based employees
Work-related injury insurance coverage % 100 Indicator Unit 2024
Employee training expenditure Million RMB 0.48
Shipowners' P&I insurance expenditure Million RMB 10.63
Training sessions Session 71
Shipowners' P&I insurance coverage % 100
Note: The statistical scope covers Shenghang Group. Total number of trainees Person 129
Employee training coverage
%100
Employee training and development
Employee training
Senior management 8persons
Female 40persons
Shenghang Group is committed to creating a learning enterprise. The Human Resources Department plans employee training work Middle management 34persons
as a whole and formulates training plans every year to ensure the orderly development of training work. In combination with the
training needs of shore-based and maritime functional departments the Company actively builds a team of internal and external Male 89persons
professional lecturers improves the business ability and knowledge of employees at different levels through training at all levels Grass-roots employees 87persons
and analyzes the training situation in a timely manner to ensure the solid implementation of training effects and promote the
common growth of employees and the Company.Shore-based personnel training Number of trainees by gender Number of trainees by rank
The Company has formulated the Shore-based Employee Training Management System built a systematic training system covering
the whole career cycle set up training types such as job transfer job transfer training new employee orientation training
management training and job skill training and scientifically planned employee training in combination with off-the-job training
on-the-job and self-inspiration training to improve employee professionalism and strengthen management capabilities. Note: The statistical scope of shore-based employee training only covers Shenghang Group.
129 1302024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Crew training Crew training
In order to improve the basic quality and professional skills of seafarers the Company formulates a training plan for seafarers in Indicator Unit 2024
accordance with the Rules for the Management of Seafarers Training of the People's Republic of China and other requirements
and ensures the coordination of training effectiveness and business objectives through the implementation of
Million RMB
"training-examination-use" process management. Training expenditure 0.19
Total number of trainees Person 737
Crew training performance
in 2024
Training coverage % 100
Total training duration Hour 63264
System training Organized 420 monthly training sessions for tracking ships; 162 crew trainees for pre-entry
training; 750 trainees for basic and special training after entry.Master 90Hours/person
Business 560 trainees in positions for "essential job knowledge and skills" training; 70 trainees for post
improvement promotion (job transfer training); 3 senior crew seminars; 1 special cargo operation business
training training session for chief mate; 1 ECDIS professional training for the second mate.Average training Officers 89Hours/person
Regulatory training Improve the three-level education and training program for work safety; Organize three-level
duration by rank
education and training for 820 trainees.Training of newly Implement the new certificate training and compensation system so that seafarers can actively Ratings 84Hours/person
certified seafarers request to learn the new certificate for regularization assessment and improve their performance
skills.Training of inland A total of 12 inland waterway certified drivers were trained throughout the year; The fleet has
waterway certified
seafarers a total of 89 on-the-job inland waterway certified drivers of which 4 are under reference. Note: The statistical scope of seafarers training only covers Shenghang Group.Training for newly Training was organized for 9 newly delivered ships including crew transitioning from inland to
delivered ships ocean-going operations.Chief mate training
131 1322024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Level five Department General Manager Expert
Manage Technical/Profe
Level four Position Manager Veteran
channels ssional channel
Level three Supervisor Backbone
Senior Officer Seminar
Level two Experienced
Employee development Level one Beginner
The Company attaches great importance to employee development and establishes and improves a career planning and
development system. For shore-based employees the Company develops dual channels of management sequence and Fresh Induction On-the-job Qualified employee Induction Social recruitment
professional sequence to provide fair and diversified choices and development opportunities for each employee; In terms of crew graduate training internship (regularized) training of employees
training and promotion the Company has formulated system documents such as Crew Employment Assessment and Management Category
Procedure and Crew Promotion Assessment System and established crew promotion and interview promotion procedures to
provide solid guarantee and clear guidance for the career development of crew from multiple dimensions.Job development path diagram
Shenghang Group's 2024 Senior Crew Promotion
Interview Day successfully concluded Case
Rank
According to the Company's 2024 officer promotion
A M5 Chairman plan in combination with the latest effective officer
promotion and interview procedures and under the
General personal guidance of the General Manager the Crew
M4 Manager/Depu-B T5 General Sales Position Manager S5 Department arranged eligible seafarers to participate in ty General Manager
Manager the interview promotion assessment from November 11
to 12 2024 which was the first centralized crew
Department Sales Area promotion interview organized by the Company after the
C M3 General T4 Senior Director S4 P4 Senior Commissioner
Manager/Deputy Manager institutionalization of crew promotion interview.Manager
Intermediate
D M2 Position Manager T3 Supervisor S3 Sales Manager P3 Intermediate Specialist
E M1 Supervisor T2 Junior Supervisor S2 Salesman P2 Commissioner
Assistant Harmonious society building
F T1 Assistant S1 Business Assistant P1 Commissioner/
Clerk
Management category Technical category Sales category Professional category Category In order to actively fulfill its social responsibilities and strengthen the management of donations the Company has formulated the
（M） （T） （S） （P） Management System for External Donations in accordance with the Law of the People's Republic of China on Donations for Public
Welfare and other laws and regulations to standardize external donations guide the relevant units to establish and improve external
donation decision-making and management systems supervise and inspect the implementation of donation activities and
Job development path diagram contribute to improving social welfare and promoting social development.
133 1342024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Self-Regulatory
Guidelines No. 17
APPENDICES Guidelines for Sustain- for Companies Listed on Chapter GRI Standards ability Reporting for Chinese Enterprises Shenzhen Stock
(CASS-ESG6.0) Exchange—Sustainability
Index Table Report (for Trial Implementation)
Article 21
Self-Regulatory
Guidelines No. 17 Article 22
Guidelines for Sustain- for Companies
E1.1.1/E1.1.2/E1.1.3/E1.1.4/
201-2/305-1/305-2/305-4/305- Article 23
ability Reporting for Listed on Response to climate change E1.1.6/E1.1.7/E1.1.8/E1.1.14/Chapter GRI Standards Chinese Enterprises Shenzhen Stock 5 Article 24E1.1.16
(CASS-ESG6.0) Exchange—Sustainability Article 26
Report (for Trial Article 27
Implementation) DEEPENING
Article 29
Article 4 GREEN E2.1.1/E2.1.2/E2.1.5/E2.1.6/
ABOUT THIS REPORT 2-1/2-2/2-3 P1.1/P1.2 2-27/303-2/303-4/305-7/306- Article 30
Article 6 SHIPPING Environment management E2.1.7/E2.2.1/E2.2.3/E2.2.5/
1/306-2/306-3/306-5 Article 31
COPORATE ADDRESS 2-22 P2.1 / E2.2.6/E2.2.7/E2.4.1/E2.4.2 Article 33
Article 35 Energy management 302-1/302-2/302-3/302-4 E3.1.1/E3.1.3/E3.1.4/E3.1.5 Article 35
SUSTAINABILITY HIGHLIGHTS IN 2024 201-1 E3.1.4/S2.1.4/S2.1.6/S2.1.10 Water management 303-1/303-5 E3.2.1/E3.2.2/E3.2.3/E3.2.4 Article 36
Article 42
FOCUSING ON THE SHIPPING OF BULK Diverse ecology maintenance 304-1/304-2 E2.3.1/E2.3.2/E2.3.3 Article 32
LIQUID CHEMICAL AND STRENGTHENING THE 2-6 / / Circular economy / E3.3.2 Article 37
SAFE TRANSPORTATION CONTROL SYSTEM
S2.1.1/S2.1.2/S2.1.3/S2.1.4/
INNOVATING SMART SHIPPING AND STRIVING Article 6
2-6 S2.1.12/G1.1.12 Innovation drive / S2.1.5/S2.1.6/S2.1.7/S2.1.8/ Article 42
FOR LEADERSHIP IN SHIPPING TECHNOLOGY Article 42
LEADING S2.1.9/S2.1.10/2.1.13
EXPANDING GREEN OPPORTUNITIES
INDUSTRIAL
AND LAYING OUT CLEAN ENERGY-BASED 2-6 P3.4/E1.1.19 Article 28 Customer service
VALUE 2-25/2-26 S3.3.1/S3.3.4/S3.3.6 Article 47
WATERWAY TRANSPORTATION BUSINESS improvement
Supply chain management 308-1/408-1/409-1/414-1 S3.1.1/S3.1.2/S3.1.3/S3.1.4 Article 45
Company profile 2-1/2-6 P3.1/P3.3 / Data security and customer
418-1 S3.4.1/S3.4.3 Article 48
ABOUT Corporate culture / P3.2 / privacy protection
SHENGHANG Strategic planning 2-6 P3.2 / Improving the safety 403-1 S4.2.2/S4.2.3 Article 50
GROUP management systemHistory 2-1 P3.4 / Identifying risks and
403-2 S4.2.1 Article 50
Glories and recognition / / / ENSURING opportunities
Article 11
SDGs and vision 2-22 G1.1.11 SHIPPING Fortifying safety risk controls 403-2 / /
Article 19 SAFETY Strengthening safety
Article 11 403-9 / /
SUSTAINABLE Sustainable development G1.1.1/G1.1.2/G1.1.5/G1.1.6/ objective management
2-9/2-12/2-13/2-14/2-16/2-17 Article 12
system G1.1.8 Implementing safety DEVELOPMENT
Article 18 403-4/403-5/403-7 S4.2.4 Article 50management measures
GOVERNANCE Communication with Article 9
2-29 G1.3.2 2-7/2-23/2-24/2-25/2-26/201-
stakeholders Article 53 Labor rights and interests S4.1.1/S4.1.3/S4.1.4/S4.1.6/ Article 491/401-1/401-2/405-1/406-1/408-
Materiality topic management 3-1/3-2/3-3 G1.1.9 Article 5 PROTECTING management S4.1.7/S4.1.9/S4.1.11/S4.1.12 Article 501/409-1
Occupational health 403-1/403-2/403-3/403-4/403- S4.2.1/S4.2.2/S4.2.3/S4.2.4/
Leadership by Party building / / / EMPLOYEES' Article 50
RIGHTS AND management 5/403-6/403-7/403-8/403-10 S4.2.5
Three Bodies governance 2-9/2-12/2-19/405-1 / / Employee training and S4.3.1/S4.3.2/S4.3.3/S4.3.4/
STRENGTHENING INTERESTS 404-2 Article 50
CORPORATE Risk management 207-1/207-2 / /
development S4.3.5/S4.3.6
Harmonious society building / S1.2.1 Article 40
GOVERNANCE Investors' rights and interests 2-29 / /
Index Table / A3 Article 57
2-23/2-24/2-26/205-1/205- G2.1.1/G2.1.2/G2.1.3/G2.1.7/ Article 55
Business ethics APPENDICES
2/205-3/206-1 G2.2.2 Article 56 Feedback Form / A6 Article 9
135 1362024 Environmental Social and Governance (ESG) Report of NANJING SHENGHANG SHIPPING CO. LTD.
Feedback Form
Dear readers
Thank you very much for reading this report. We highly value and sincerely welcome your feedback. Your comments and
suggestions will serve as critical guidance for us to continuously enhance the quality of ESG disclosures strengthen ESG
management practices and advance sustainable development initiatives. We deeply appreciate your valuable input.
1. How would you evaluate our overall ESG performance You can contact our company through the information below:
□Excellent □Good □Fair □Poor □Very poor Tel: 025-85668787
2. What is your general assessment of this report Fax: 025-85668989
□Excellent □Good □Fair □Poor □Very poor
3. How effectively do you think we communicate with stakeholders
□Excellent □Good □Fair □Poor □Very poor Email: njshhy@njshshipping.com
4. How would you assess our performance in industrial value creation Address: Building 7 No. 12 Xinglong Road Nanjing Area China (Jiangsu) Pilot Free Trade Zone
□Excellent □Good □Fair □Poor □Very poor
5. How would you rate our performance in environmental protection safety and occupational health □Excellent □Good
□Fair □Poor □Very poor
6. How adequately do we address employee-related responsibilities
□Excellent □Good □Fair □Poor □Very poor
7. How comprehensively do we implement ESG practices
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8. What specific recommendations do you have regarding our ESG implementation and this report
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