SF Holding
2025
Sustainabi l i ty Repor tCONTENTS
About SF Sustainability Governance Environmental
SF Culture 3 Governance Operating with Integrity to Ensure Embarking on a Green Journey to Build
Awards for Sustainable Development 4 Steady and Long-term Success a Low-Carbon Logistics Ecosystem
ESG Rating Performance 5
Board Statement 8 Standardizing Corporate Governance 15 Leading the Low-Carbon Transition 30
Annual Progress on UN Sustainable
ESG Governance 9 Strengthening Risk Management 17 Developing Green Logistics 33
Development Goals (UNSDGs) 6
ESG Policy Statement 9 Upholding Business Ethics 20 Advancing Circular Economy 47
Stakeholder Engagement 10 Ensuring Information Security 26 Practicing Green Operations 48
Materiality Assessment 11 Protecting the Ecological Environment 54
Addressing Climate Change 56
Social Services Appendix
Advancing with Responsibility to Leading with Digital Intelligence to
Co-create a Brighter Future Connect the Globe and Empower About This Report 130
Overseas Expansion
Construction of Talented Team 66 Assurance Statement 132
Protecting Employee Rights and Pioneering Intelligent Logistics 111 Policy List 133
Interests 80 Empowering Global Expansion 121 Key Performance Indicators 137
Guarding the Safety Line 89 Providing Premium Services 122 Sustainability Report Content Index 142
Building a Responsible Supply Chain 97 Safeguarding Delivery Security 128
Contributing to Social Well-being 102SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
About SF “ SF Holding is the largest integrated logistics service provider in China and Asia and the fourth largest in the world1 ”
Founded in 1993 SF has evolved into Asia’s largest and the world’s fourth-largest integrated logistics service
provider through its 33-year development ranking 393rd on the Fortune Global 500 list. SF serves over 2.35
million corporate clients and more than 800 million individual consumers offers logistics services spanning
time-definite express services economy express services freight services cold chain and pharmaceutical Largest in Asia 4th Largest Globally
logistics services intra-city on-demand delivery services as well as supply chain and international services
(including international express services international cargo and freight forwarding services and supply chain 1
services). Leveraging its industry-leading technology SF empowers customers in building global end-to-end Integrated logistics service provider Integrated logistics service provider1
one-stop secure and efficient smart supply chain systems with the vision of becoming the well-respected and
the world’s leading digital intelligence logistics solution provider.SF boasts an extensive global logistics service network with domestic operations covering all cities in China.SF’s international express services international cargo and freight forwarding services and supply chain
services extend to 95 countries and regions globally while its international small parcel delivery services
establish the footprint in 200 countries and regions. SF is the premium brand in the logistics industry both in
China and globally having been listed for nine consecutive years among “China’s Most Admired Companies” No. 1 in Asia No. 1 in China
by Fortune China and ranks first in Express Delivery Service Public Satisfaction in China for 16 consecutive
years. The Company’s time-definite express services maintain a commanding market share in China. In Express Freight Intra-city On-demand Express Freight Cold Chain Intra-city
China SF ranks first in five segments: express delivery freight cold chain intra-city on-demand delivery2 and Delivery2 International Business On-demand Delivery2 Supply Chain3
supply chain services3. In Asia SF ranks first in four segments: express delivery freight intra-city on-demand
delivery2 and international services4.Looking ahead as a global logistics leader connecting Asia with the rest of the world SF will continue to
leverage its well-recognized premium brand extensive global network coverage and comprehensive logistics
service capabilities to accelerate global expansion drive sustainable and healthy business growth and position
itself as the go-to logistics partner for business customers and retail customers – fostering growth together No. 1
with customers and creating shared value. Customer satisfaction for express
services in China
On the Fortune Global 500 list SF serves over 16 years in a row
393rd 2.35 More than 800 million ranking million corporate clients individual consumers
1 According to Frost & Sullivan Report in terms of revenue in 2024
2 Among third-party intra-city on-demand delivery service providers
3 Among non-state-owned independent third-party supply chain solution providers
4 Among the integrated logistics service providers in Asia
2SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
SF Culture
SF Culture is the spirit wealth and physical form with SF’s characteristics
formed in production Business and management activities. Its cores
include vision core values SF spirits three major philosophies
(Business management employment) and so on. SF Culture is not Vision
only the fundamental presentation of SF’s individualization but also To be er
SF’s spirits of existence competence and development. the we tion pr
ovid
ll-respected and the w elligence logisti
cs solu
orld’s leading digital int
Customer-centered Professional and dedicated service spirits
Honesty-based Core Values SF Spirits Self-critical learning spirits
Pioneering
Love-oriented innovation spirits
Business philosophy Management
philosophy Employment philosophy
SF Cultural Framework Model
Customer-centered Professional and
dedicated service spiritsCustomer’s demand is the “sourceof innovation” of our company we Pursue professionalism and
make every effort to provide products maintain concentration persist in
and services that surpass customer’s providing caring and cost-effective
expectation. services to customers.To be the well- Honesty-based Self-critical learning spirits
respected and the To solve the problems look into
world’s leading digital The honesty-based principle is the
intelligence logistics “source of long-term success” of our
our own reasons first do not
solution provider. company and also our moral norm
pass the buck be brave to face
and operation strategy. difficulties always be introspective
and corrective to make progress.Love-oriented Pioneering innovation spirits
The love-oriented principle is the
“source of value creation” of our Be open to embrace change
company we insist on enhancing be bold to innovate and make
employee’s experience. breakthroughs and do not adhere to old patterns.
3
SF Spirits
Core Values
VisionSF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Awards for Sustainable Development
Best Practices for Sustainability
2025 Fortune Global 500 World’s Top 500 Most No. 1 in Express Delivery of Listed Companies in 2025 (4
(4 consecutive years) Valuable Brands in 2025 Service Public Satisfaction in consecutive years)
2025 China’s Most Admired (6 consecutive years) the first three quarters5 of 2025 A Rating in Information
Companies (9 consecutive years) Best Practices for Disclosure Assessment World’s Most Valuable No. 1 in Express Delivery Board of Directors of for Listed Companies
2025 China ESG Impact Logistics Brands in 2025 Service Public Satisfaction Listed Companies in (9 consecutive years)
List (4 consecutive years) (7 consecutive years) in 2024 (16 consecutive years) 2025 (3 consecutive years)
Fortune Brand Finance State Post Bureau China Association for Public Companies Shenzhen Stock Exchange
2025 China Corporate
Asia’s Most Honored ESG Top 100
Company in 2025 2025 China ESG 50 Gelonghui Golden Award · ESG
(2 consecutive years) 2025 China ESG “Golden 2025 “Golden Dawn ESGRanking 1st in Six Overall Responsibility Award” – Best Practice Award” Outstanding Enterprise in
Transportation Awards 2025 ESG Inspiration Cases Corporate Governance Environmental Friendliness
(including Best ESG Program) (G) Responsibility Award
Extel (formerly Institutional
Investor Research) Forbes China Sina Finance Securities Market Weekly Gelonghui
2024 ESG Report Awards: Platinum
Award (Highest Honor) for
Transportation & Logistics
2025 Hong Kong Stocks 2025 Wind China Listed
The 9th China IR Annual Awards –
Excellence ESG Award Industry Top 50 Chinese 2025 China Corporate ESG
ESG Top 100 Companies ESG Best Practice Top 100 Leaders Excellence Investor Relations
Reports Top 100 Reports
(Large-Cap) Program (Asia-Pacific Region) Technical Achievement Award
Hong Kong League of American Communications
Commercial Daily Wind SynTao Green Finance Roadshow China & IR Professionals (LACP)
5 As of the date of this report the results of the 2025 Public Satisfaction Survey on Express Delivery Services have not yet been released.
4SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
ESG Rating Performance
International ESG Ratings Domestic ESG Ratings
CNI ESG Ratings Wind ESG Ratings
Rated as “Low Risk” by
MSCI ESG Rating upgraded to AA in 2026 Sustainalytics (2022-2025) AAA AAA
Maintained a B rating on CDP Climate CSI ESG Assessment CCX ESG Ratings
Scored 56 in the 2025 S&P Global Change (2022-2025)
Corporate Sustainability Assessment (CSA) AA AA-
Achieved an A rating on the CDP Supplier
Engagement Assessment (SEA) in 2025
FTSE4Good Index China HuaZheng ESG Ratings SynTao Green Financial ESG RatingIncluded in the
Series for five consecutive years
(2021-2025) A A
* Note: The above ratings/scores are valid as of March 30 2026.
5SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Annual Progress on UN Sustainable Development Goals (UNSDGs)
The SF Lotus Education Aid Program has reached 68 Adheres to international human rights and labor standards Packaging reduction measures saved about 46000 tons
counties county-level cities and districts across 18 provinces and implements the Ten Principles of the United Nations of raw paper and 35000 tons of plastic cutting carbon
autonomous regions and municipalities nationwide benefiting Global Compact (UNGC) integrating human rights protection emissions by about 130000 tons.
45862 students in need and awarding scholarships and throughout all business operations.
grants totaling RMB290 million. A cumulative 20.55 million reusable packaging containers Formulated the Statement on Employee Rights Protection were put into use with more than 1.6 billion reuse cycles
implementing the requirements of relevant international cutting carbon emissions by about 520000 tons.conventions including equal pay for equal work prohibition Gives priority to purchasing energy-saving water-saving and
of child labor elimination of employment discrimination material-saving environmentally friendly products and services
The SF Warmth and Care Program has cumulatively invested prohibition of forced labor and occupational safety and health. to reduce resource consumption and environmental pollution
RMB518 million providing assistance to more than 26000 SF’s service network for promoting the upward mobility of thereby promoting the implementation of green procurement.seriously ill children and orphans in need and provided agricultural products covered more than 2800 county-level cities
humanistic care services to nearly 50000 person-times of nationwide and served more than 5500 fresh produce varieties.children their family members and medical staff.More than 8 million tons of specialty agricultural products
Emergency support was promptly provided in response were transported throughout the year promoting the
to incidents such as the Tai Po fire in Hong Kong flooding transformation and upgrading of local agriculture and In April 2025 SF officially secured SBTi validation for
in Yuzhong Gansu and rainstorm disasters in multiple increasing farmers’ incomes. its near-term long-term and net-zero targets earning
regions across China with essential living supplies and international authoritative recognition for its climate
relief materials swiftly transported to affected areas by commitments.leveraging the Company’s logistics capacity. Published the SF Group Climate Action White Paper
Cervical and breast cancer screenings were provided for over Investment in technology R&D amounted to RMB2.96 billion.committing to reach net-zero greenhouse gas emissions
7700 female employees. across the value chain by 2050.
A total of 4315 patents were in force or pending of which
Employee welfare and care initiatives were implemented invention patents accounted for 66.1%. Through measures such as low-carbon transport green
across three key areas: ensuring basic benefits industrial parks green packaging and green technology
strengthening caring support and promoting long- SF was the only Chinese company to receive the Franz applications SF reduced annual greenhouse gas emissionsterm development. Edelman Award known as the “Nobel Prize of Industrial by 3146348 tCO2e.Engineering.The SF Liangshan Charity Class Program provided Respects cultural differences across regions continuously Planted over 10000 mu (approx. 667 hectares) of carbon-
support to 122 students in need during the year with 114 promotes Diversity Equity and Inclusion (DEI) culture and neutral forests in Hebei and Sichuan provinces with
students graduating from the program. Cumulatively the fosters a workplace environment that respects differences and cumulative tree planting exceeding 1 million trees.program has benefited 1410 children lacking parental ensures fair development through systematic human rights
care and disadvantaged female secondary school students awareness initiatives and cross-cultural integration practices. Launched biodiversity conservation projects in Sichuan
in Liangshan. Province and the Xizang Autonomous Region continuously
Women accounted for 15.9% of the workforce ethnic minority exploring new pathways and mechanisms for biodiversity
employees accounted for 6.3% and SF provided employment conservation.opportunities for more than 1500 persons with disabilities.The Board of Directors comprises one female director
representing 16.7% of the board.The proportion of women in senior management was 29.0%. Around 178 million “Double-Easy” plastic bags were deployed
The Board of Directors includes 3 independent non-executive
in Beijing northern Zhejiang and other regions cutting carbon directors with diverse industry backgrounds representing
emissions by about 1786 tons and supporting the circular 50% of the Board.economy at scale. Over the past three years the audit coverage rate for internal
ESG requirements on safety and occupational health operational sites (including business ethics audits) was 100%.labour and human rights and environmental protection were A total of 3770 suppliers participated in anti-corruption
Cumulatively deployed over 48000 New Energy Vehicle included in supplier contracts with regular reviews of training achieving 100% coverage.covering 307 cities. supplier performance.Completed the construction of rooftop photovoltaic power Released the Supplier Sustainable Research Questionnaire
stations at 26 industrial parks with a total installed capacity of to promote environmental and social responsibility in the
111 MW and annual renewable power generation exceeding supply chain. SF Airlines officially joined the Sustainable Aviation Fuel
100000 MWh. Written and on-site assessments were conducted for 1452 (SAF) Committee marking a significant step in deepening
Continued to optimize the energy consumption structure key suppliers with 100% coverage and a 96% pass rate. green collaboration within the industry and promoting the
with annual renewable electricity consumption exceeding Supplier capacity-building project achieved 100% coverage development of China’s SAF industry.
106000 MWh. of key suppliers.
6Sustainability
Governance
Adhering to the philosophy of integrating corporate value with social
value SF continually promotes sustainable industry development
and actively explores practical pathways for corporate sustainability.The Company consistently improves its sustainability management
system deeply integrating ESG principles into the entire value
chain to effectively enhance operational capabilities and business
resilience thereby achieving long-term value creation and high-quality
development.● Board Statement ● Stakeholder Engagement
● ESG Governance ● Materiality Assessment
● ESG Policy StatementAbout SF Sustainability SF Holding 2025 Sustainability Report Management Governance Environment Social Services Appendices
Board Statement
The Board of Directors and all directors solemnly declare that the contents of this report are true accurate and complete with no false records misleading statements or material omissions. The Board further makes the
following statement regarding its ESG oversight and management:
ESG Management Policy and Strategy ESG Risk Management ESG Goal Setting and Progress Review
The Board of Directors closely monitors major global ESG trends The Board of Directors places high importance on managing The Board of Directors is responsible for overseeing and
and shifts in domestic and international macroeconomic conditions. ESG-related risks actively engages in stakeholder managing the Company’s sustainable development initiatives.Aligning with the Company’s current strategic development plans communication assesses analyzes and prioritizes the It sets strategic objectives policy directions and key priorities
it actively engages with stakeholders to accurately identify ESG- significance of ESG issues identifies associated risks and in core sustainability areas supervises and guides the
related risks and opportunities. When necessary it updates ESG opportunities and updates management policies and strategies implementation of ESG initiatives and ensures ESG governance
management policies and strategies to ensure SF’s ESG principles as necessary. SF has integrated ESG-related risks including is integrated into the Company’s strategic development.remain current and relevant. climate change into its corporate risk assessment system Compensation for members of the Sustainability Leadership
conducts regular risk identification and evaluation and develops Group under the Board’s Strategy Committee is linked to ESG
corresponding risk response measures. For further details on performance. The Board will continue to optimize the Company’s
risk management and internal controls please refer to the ESG governance regularly review progress toward objectives
“Governance - Strengthening Risk Management” section of this actively address stakeholder concerns and continuously
report. For details on climate change risk management please enhance ESG governance standards.refer to the “Environment - Addressing Climate Change” section.
8Sustainability
SF Holding 2025 Sustainability Report About SF Management Governance Environment Social Services Appendices
ESG Governance ESG Policy Statement
SF integrates ESG principles into its corporate development strategy establishing a scientific and standardized ESG management system alongside SF has progressively refined its ESG policy framework and has
a clear and transparent ESG governance framework. The Company fully implements ESG-related strategies to support the sustainable development formulated and released numerous sustainability policies.of its business operations.Category Policy
Board of Directors SF Code of Business Conduct
Statement on Anti-Corruption
Governance
Audit Remuneration and Nomination Strategy Committee Risk Management Statement of Conflict of Interest
Committee Appraisal Committee Committee Oversight responsibilities for sustainable development Committee Board Diversity Policy
Statement on Employees Rights Protection
Determine the strategic objectives strategies and focuses relevant to sustainability supervise and
Strategy Committee of Society
the Board of Directors guide the implementation of ESG work and ensure that ESG governance is integrated into the SF Supplier Code of Conduct
Company’s strategic development.Environment SF Environmental Management Policy
Decision- Supervision Periodic
Making & Guidance Reporting
Supervision
Supervised by the Chief Executive Officer (CEO) and composed of the Chief Financial Officer (CFO)
Sustainability Chief Operating Officer (COO) Chief Marketing Officer (CMO) Chief Technology Officer (CTO) and
Leadership Group Chief Human Resources Officer (CHO) the Group is responsible for setting sustainability goals in
line with the Company’s sustainability strategies and development situations and reviewing the
progress regularly.Overall Daily
Planning Reporting
Composed of representatives of the Office of the Board of Directors various functional departments
Daily Sustainable Development BGs (Business Group) and BUs (Business Unit) related to sustainable development the Group
Management Working Group is responsible for the overall implementation and promotion of ESG-related work accelerating the E S G
implementation of the Group’s goals in each business unit and functional system and gradually
promoting the normalization of sustainable development governance
Coordination in
implementation Daily
& promotion Reporting
Implementation Business and Functional Implement ESG-related specific work in accordance with the established management indicators Departments and mechanisms and regularly report to the Sustainable Development Working Group.
9About SF Sustainability SF Holding 2025 Sustainability Report Management Governance Environment Social Services Appendices
Stakeholder Engagement
SF places a high priority on stakeholder engagement establishing diversified and efficient communication channels tailored to the priorities of each stakeholder group. These channels ensure that nine key stakeholder
groups including regulators customers employees investors and value chain partners receive timely and accurate information on an ongoing basis thereby normalizing and enhancing the transparency of communications.Additionally SF integrates stakeholder expectations and concerns into its strategic planning and daily operations regularly reviewing the significance of various issues within the Company’s operations and development.Main
Stakeholder
Groups
Regulatory Customers Employees Shareholders Directors Supervisors Suppliers Community Industry Media/the Public
Agencies and Investors and Senior Executives Associations
Compliance Safe Delivery Rights Protection Return on Corporate Sustainable Public Charity Strengthen Information
Operations Protection of Development and Investment Governance Procurement Community Communication Disclosure
Main Tax Compliance Consumer Rights Training Corporate Compliance Risk Integrity and Development and Cooperation Interact with the
Concerns Integrity Building Customer Privacy Employee Care Governance Sustainable Honesty Rural Industry Standard Media
Protection Occupational Health ESG Management Operations Industry Revitalization Development
Responsible and Safety Cooperation
Marketing
Information Customer Research Communication General Meeting Regular Board Supplier Provision of Convening Summit Information
Disclosure Customer Hotline Channels of Shareholders Meetings Conferences Employment Activities Disclosure
Main Policy Customer Satisfaction Announcements Supplier Trainings Industrial Organize Establish a
Channels for Implementation Satisfaction Survey Survey and Circulars Industry Assistance Technological Communication
Communication Institutional Employee Meeting Investor Communication Volunteer Service Communication Mechanism
Inspections Employee Roadshows Public Welfare
Activities Activities
Actively
Operate legally and Deliver efficient Legally protect Establish and Regular reporting Conduct Engage through Participate in communicate
compliantly reliable and rapid employee rights refine a robust Compliant transparent official platforms industry exchange through official
Prevent major logistics services Actively conduct decision-making operations procurement such as websites activities platforms such as
safety accidents Enhance the training and oversight Strengthened risk practices Conduct regular Lead industry websites
Enhance local customer claims Refine the mechanism control Eliminate visits standards setting Provide external
employment rates process mechanisms for Enhance risk commercial bribery
Response communication Actively advance Build a safety talent promotion management and materials
Measures industrial poverty ecosystem and compensation control
alleviation Strengthen Ensure effective
occupational information
health and safety disclosure
management Organize activities
Implement diverse for different
employee benefits shareholder types
10Sustainability
SF Holding 2025 Sustainability Report About SF Management Governance Environment Social Services Appendices
Materiality Assessment
Materiality issue management is the foundation and core for identifying and assessing ESG risks impacts and opportunities scientifically formulating ESG strategic planning and advancing sustainability work. To review
objectives commitments policies management strategies practices and performance related to sustainable development and to address stakeholder concerns regarding the Company’s sustainability efforts SF conducts an
annual materiality assessment. This process combines questionnaire surveys and on-site interviews to identify and update key ESG issues which are then fully integrated into the Company’s operational management. This
approach ensures continuous enhancement of the Company’s sustainable development management and practices.In 2025 SF continues to implement the double materiality assessment in accordance with the Self-Regulatory Guidelines for Listed Companies No. 17 – Sustainability Report (Trial) and the Self-Regulatory Guidelines for
Listed Companies No. 3 – Preparation of Sustainability Report issued by the Shenzhen Stock Exchange combining impact materiality and financial materiality evaluations to comprehensively analyze the significance of ESG
issues for the Company. The identified material issues are responded to within this report.Double Materiality Assessment Process
The Company strictly adhered to the provisions The Company has established an assessment process to identify analyze and evaluate the potential impact risk and
Step 1: of the Self-Regulatory Guidelines for Listed opportunity associated with ESG issues forming the basis for materiality assessment.Background Companies No. 17 – Sustainability Report (Trial)
Analysis issued by the Shenzhen Stock Exchange. The Company comprehensively considered various Step 2
and Issue Step 2-1: Impact Materiality Assessmentfactors including macroeconomic and policy
Identification environment ESG information disclosure The Company conducted a quantitative assessment of the environmental social and governance impacts of various ESG
standards international sustainability initiatives issues on a scale of 1 to 5 through questionnaire surveys inviting both internal and external stakeholders to participate.capital market ESG rating requirements industry Additionally SF engaged in interviews with key stakeholders to evaluate the likelihood of the impacts associated with each
best practices in ESG and the Company’s ESG issue. The impact materiality scores for each ESG issue were determined through a comprehensive analysis of the
development strategies. The Company continues quantitative assessment results and interview findings.to adopt the 26 ESG issues identified in
2024 providing clear guidance and direction
for advancing its sustainable development Dimension 1: Impact Assessment Dimension 2: Likelihood Assessment
initiatives.The Company conducted an impact assessment of The Sustainable Development Working Group in
the influence of ESG issue management through a collaboration with external ESG experts assessed
questionnaire survey consulting both internal and the likelihood of the impacts associated with each
external stakeholders. The assessment dimensions ESG issue.comprehensively considered the scale scope and
Topic 2025 ESG Issues irreversibility of the impact.Addressing Climate Ecosystem and Biodiversity Water Resource
Environment Change Conservation
(9 Issues) Pollutant Emissions Environmental Compliance
Management
Circular Economy Step 2-2: Financial Materiality AssessmentManagement Management
Waste Management Energy Utilization Green Packaging Under the guidance of external ESG experts the Sustainable Development Working Group assessed the financial
Supply Chain Security and materiality of various ESG issues from two dimensions: “Continuity of Resource Use” and “Dependence of Relationships”.Resilience Employee
Rural Revitalization Equal Treatment of Diversity and Inclusion Dimension 1: Continuity of Resource Use Dimension 2: Dependence of Relationships
Social Social Contribution Small and Medium-sized Safe Delivery and
(12 Issues) Innovation-Driven Enterprises (SMEs) Transportation
Ethics in Science Product and Service Safety Building a Green and Analyzed the likelihood and magnitude of impact on Analyzed the likelihood and magnitude of the impact
and Technology and Quality Assurance Intelligent Industrial profit in the short medium and long term from the on corporate profits across the reporting period short
Data Security and Customer Chain perspective of meeting operational needs. medium and long term arising from the management
Privacy Protection of ESG issues specifically from the perspective of
maintaining sound external stakeholder relationships
Governance Due Diligence Anti-Commercial Bribery and supporting the Company’s long-term development.
(5 Issues) Stakeholder and Anti-Corruption Corporate Governance
Engagement Anti-Unfair Competition
11About SF Sustainability SF Holding 2025 Sustainability Report Management Governance Environment Social Services Appendices
2025 Double Materiality Analysis Matrix
Based on the assessment results from
Step 2 the Company conducted a double
materiality analysis to determine the priority
ranking of material issues for the year
2025 and developed a materiality matrix.
When evaluating the “Innovation-Driven”
issue the Company considered that digital
and intelligent logistics is integral to its Innovation-Driven
vision as it enhances network operational
efficiency improves logistics service
quality and deepens supply chain service Data Security and Customer
Step 3: capabilities thereby fostering the Company’s
Privacy Protection Safe Delivery and
long-term healthy operation. In assessing Transportation
Prioritization the “Energy Utilization” issue the Company Employee Energy Utilization
of Material took into account the ongoing accelerated
ESG Issues transformation of the energy structure and Building a Green and
the significant dependency of its ongoing Intelligent Industrial Chain Addressing Climate Change
operations on energy resources. Both energy
utilization and the energy transition are Product and Service Safety
expected to exert a profound influence on the Rural and Quality Assurance
Company’s long-term strategy operational Waste Management Revitalization Circular Economy Anti-Commercial Bribery and Anti-Corruption
performance and cost control. Regarding
the “Addressing Climate Change” issue the Corporate Governance
adoption of green and low-carbon logistics
models presents substantive development Anti-Unfair Competition
opportunities for the Company. Accelerating Supply Chain Security
its transformation is imperative to better Pollutant Emissions
Management Social Contribution
and Resilience
satisfy the growing market demand for green Green Packaging
logistics. Therefore based on the Company’s Equal Treatment of Small and
established threshold for financial materiality Medium-sized Enterprises (SMEs) Ethics in Science
the issues of “Innovation-Driven” “Energy Due Diligence and TechnologyUtilization” and “Addressing ClimateChange” are all deemed to be financially Water Resource
material. Management Environmental
Compliance Management
Diversity and Inclusion
Stakeholder Engagement
The materiality matrix was reviewed and Ecosystem and Biodiversity Conservation
confirmed by the Strategy Committee of
the Board of Directors and is subsequently
reported and disclosed. The Company Moderate Importance Secondary Importance Material Importance
Step 4: conducted an analysis and assessment of
Analysis and the impact risk and opportunity associated
Reporting with the top five material issues based
Financial Materiality
on their priority ranking. The management
measures and practical outcomes related to
these issues were highlighted in the relevant Environmental Social Governance Issues
sections of this report. Issues Issues
12
Material Importance Secondary Importance Moderate Importance
Impact MaterialitySF Holding 2025 Sustainability Report About SF
Sustainability
Management Governance Environment Social Services Appendices
Materiality ESG Key Location in Related Disclosure Location
Priority Category Issues the Value Stakeholders Impacts Risks Opportunities of Management and Chain Practices
Leveraging its long-term deep cultivation in the
logistics sector and forward-looking layout of cutting-
Technological innovation in the High R&D investment may increase short- edge technologies the Company accurately seizes
logistics industry continues to reshape term financial pressure and uncertainties in development opportunities brought by scientific and
service efficiency and the value R&D cycles and technological iteration may technological innovation. It continuously improves the
1 Social Innovation-
Direct
Operations Customers chain. Breakthroughs and iterations in increase operational risks. Given its extensive
operational efficiency of its logistics network focusing Pioneering Intelligent
Driven Downstream Employees automation and intelligent technologies business coverage and large data volume the
on technological innovation and comprehensively
enhances the quality of logistics services and customer Logistics
are accelerating industry differentiation Company is susceptible to cybersecurity and experience. Meanwhile it actively expands service
and transformation toward smart low- data compliance risks and needs to strengthen boundaries deepens the integrated application of
carbon ecosystems. compliance prevention and control capabilities. technology with supply chain scenarios across various
industries and empowers industrial development with
digital and intelligent capabilities.Against the backdrop of global efforts to address The Company continues to enhance its energy
The energy consumption structure directly climate change energy regulatory policies are utilization efficiency and reduce energy costs
impacts operating costs and carbon becoming increasingly stringent and energy through applications such as new energy
emission reduction. Policy pressures and efficiency standards are continuously raised. vehicles and photovoltaic power generation.oil price fluctuations drive the large-scale The Company may need to invest more Its green and low-carbon logistics capabilities Regulatory
Energy Direct Agencies adoption of new energy technologies
resources to optimize its energy structure and will help expand high-end manufacturing
2 Environment improve utilization efficiency which may push apparel footwear and other low-carbon- Practicing Green Utilization Operations Customers accelerate the electrification of transport vehicles and enhance the layout of up compliance and operating costs to a certain sensitive clients increasing revenue streams OperationsSuppliers extent. Affected by fluctuations in market prices by providing green logistics solutions.clean energy networks. These measures of clean energy (including sustainable aviation The first-mover advantage in carbon management
collectively promote the industry’s fuel green electricity etc.) and fossil fuels technology enables the Company to lead the
transition towards green and intensive (such as gasoline diesel etc.) the Company development of industry green standards and
development. may face certain pressure in cost control in drives the premium scope of logistics services to
transportation and warehousing segments. expand from timeliness to sustainability.In the digital transformation of the logistics Data security and privacy protection
industry data security and privacy The Company has accumulated a large amount technologies can be leveraged as differentiated
of data over many years of operation. Despite service advantages. Benefiting from its protection directly affect the Company’s leading position and substantial technological
Regulatory operational risk prevention and control having established a series of data security
Data Security accumulation in the logistics industry the
3 Social Direct Agencies and the foundation of customer trust. As control mechanisms certain data security Company has established a robust data and Customer Ensuring Information Operations Customers global privacy regulations become stricter risks remain. As customers’ awareness of security management system to ensure Privacy SecurityEmployees this issue is not only key to meeting privacy protection grows and data regulations compliance with data regulations mitigate
Protection compliance requirements but also drives tighten companies holding personal information cross-border operational risks enhance
technological upgrading and industry inevitably face privacy compliance risks. customer trust and brand competitiveness and create favorable conditions for international
ecosystem collaboration. expansion and sustained business growth.Safe delivery and transport capabilities
Safe delivery is the lifeblood of the have emerged as the core of the Company’s
Employees logistics industry. The growing customer Accidents in safe delivery may lead to brand differentiated competition with growing
Regulatory demand for parcel integrity and reputation damage and legal liability. The need demand for high-end services such as high-Safe Direct Agencies controllability of the transport process for technological upgrades such as intelligent
Safeguarding
insurance protection and pharmaceutical cold
4 Social Delivery and Operations Media/the has shifted logistics services from basic monitoring and full-process temperature chains. Intelligent traceability technology can
Delivery Security
Transportation generate data-driven value-added services. Promoting Industry Public efficiency competition to safety and trust control will drive up the Company’s operating Leading the development of industry safety Development
Community as value anchors fostering high-value- costs. Meanwhile updates to industry safety standards will increase compliance pressure. standards strengthens the Company’s added security services. ecosystem influence and drives the shift of
logistics value towards safety and trust assets.The increasing frequency of extreme weather
has raised the risk of logistics network Frequent extreme weather events heighten
disruptions and increased volatility in operating the risk of disruptions to logistics networks. Investing in climate adaptive technologies
costs. Global carbon tariffs and emission Disasters such as typhoons and floods cause can enhance supply chain resilience. Green
reduction targets are accelerating the low-carbon fluctuations in transportation timelines and logistics solutions attract ESG investment
Direct transition of transportation vehicles compelling Addressing Customers the Company to expedite the deployment of new damage infrastructure increasing repair and funds and high-end customers. The Addressing Climate 5 Environment Climate Change Operations Employees energy vehicles and clean energy infrastructure. operational costs. Pressure from greenhouse deployment of new energy vehicles and ChangeDownstream Meanwhile climate resilience has emerged as gas reduction policies coupled with R&D photovoltaic industrial parks helps seize the
a core indicator of supply chain performance and investment in low-carbon transition low-carbon logistics niche converting climate
spurring innovation in low-carbon last-mile technologies may compel greater investment governance capability into pricing power and
delivery models. These developments directly in transforming toward green low-carbon market share.influence customer choices and drive the logistics models.iteration of industry service standards.
13Governance
Operating with Integrity to Ensure Steady and
Long-term Success
“Honesty-based” is the core value that SF has always adhered to and
it is deeply embedded in every aspect of corporate culture and business
management. Amidst a shifting global regulatory environment and
rising compliance expectations SF upholds integrity as its cornerstone.We have constructed a solid foundation comprising robust governance
comprehensive risk control strict business ethics and resilient
information security. While providing customers with secure and
reliable digital logistics services we actively safeguard the enterprise’s
long-term stability and sustainable development committed torealizing our vision of “to be the well-respected and the world’s leadingdigital intelligence logistics solution provider.”
● Standardizing Corporate Governance ● Upholding Business Ethics
● Strengthening Risk Management ● Ensuring Information SecuritySF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Standardizing Corporate Governance
Corporate Governance
SF has formulated the Articles of Association and other supporting internal control systems in strict compliance Shareholders’ Meeting
with the requirements of the Company Law the Securities Law the Governance Code of Listed Companies
and the relevant listing rules of the Shenzhen Stock Exchange and the Stock Exchange of Hong Kong Limited The Company convenes and holds shareholders’ meetings in strict compliance with relevant laws and
(including the Corporate Governance Code) and other relevant laws and regulations so as to improve the regulations engages lawyers to attend the shareholders’ meeting as observers and issue legal opinions on
Company’s internal corporate governance structure improve the internal management system and standardize the holding and voting procedures of the shareholders’ meeting and gives full respect to and protects the
the Company’s behavior. In December 2025 in accordance with new regulatory requirements such as the legitimate rights and interests of all shareholders and investors. The Company’s controlling shareholders strictly
Company Law and the Guidelines for the Articles of Association of Listed Companies and combined with regulate their conduct exercise their rights through the shareholders’ meeting and do not interfere with the
its actual situation the Company systematically revised and updated its Articles of Association and related Company’s management or decision-making by directly or indirectly bypassing the shareholders’ meeting and
corporate governance systems. The main revisions include: abolishing the Board of Supervisors with the the Board. In 2025 SF held 3 shareholders’ meetings.Board Audit Committee taking over the relevant supervisory functions; further improving the decision-making
efficiency of the Board of Directors and adjusting the number of board members from 7 to 6 including
1 employee representative director. The Company’s governance structure complies with the relevant
requirements of domestic and overseas regulators regarding the governance of listed companies.Shareholders’ Meeting
Office of the Board of
Directors Board of Directors
Audit Remuneration Nomination Strategy Risk
Committee and Appraisal Committee Committee Committee
Management
Committee
SF’s Governance Structure
15SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Board of Directors
SF’s Board of Directors is composed of 6 directors of which 3 are executive directors and 3 are independent As of the end of 2025 the Company’s board of
non-executive directors. In 2025 the Company convened 9 Board meetings to deliberate and decide on directors has a balanced allocation of experience 50% 16.7%
material matters including the A-share repurchase plan profit distribution plan exercise of equity incentives and industry background. The directors of the
H-Share placement and convertible bond issuance and the “Grow Together” shareholding scheme (A Company have diverse educational backgrounds
shares) thereby fully demonstrating the Board’s pivotal role in strategic guidance and decision-making. In including economics law accounting and business Independence Gender
strict accordance with the requirements of the Company Law the Articles of Association the relevant listing administration as well as different industry
rules of Shenzhen Stock Exchange and The Stock Exchange of Hong Kong Limited and other relevant laws backgrounds and professional qualifications. The
and regulations SF has meticulously conformed to the relevant procedures of the board meeting and made Company has three independent non-executive 50% 83.3%
timely disclosure of information after the meetings. directors with different industry backgrounds
comprising half of the board members. In addition Independent non- Female
The Board of Directors has established five special committees namely the Audit Committee the Remuneration the Company’s board of directors has one female executive directors
and Appraisal Committee the Nomination Committee the Strategy Committee and the Risk Management director representing 16.7% of the total directors.Committee. In 2025 these special committees held a total of 19 meetings. Each committee member carefully The age range of directors ranges from their 40s to Executive directors Male
reviewed various issues actively put forward relevant opinions and suggestions on corporate governance their 70s. After assessing the business model of the
and business decisions supervised and promoted the implementation and implementation of the resolutions Company and the background and competence of
of the board of directors diligently and actively performed their duties and safeguarded the legitimate rights the Directors the composition of the Board of the
and interests of the Company and all shareholders. Company is in line with the Board Diversity Policy.Performance of Duties by Special Committees of SF’s Board of Directors in 2025
Compliance Information Disclosure
Audits the Company’s financial information and its disclosure supervises and evaluates
Audit Committee internal and external audit work and the internal control system standardizing the Company’s SF has always honestly fulfilled its information disclosure obligations strictly complied with the regulations
operating behavior improves operation management and avoids operational risks. and requirements of China Securities Regulatory Commission Hong Kong Securities and Futures
Commission Shenzhen Stock Exchange and The Stock Exchange of Hong Kong Limited on information
Remuneration and Recommends the remuneration of Directors and senior management to the Board to disclosure as well as the relevant provisions of the Company’s Management System for Information
Appraisal Committee ensure that the remuneration system serves the Company’s business strategy and continuously adjusts it to support the Company’s long-term development. Disclosure and further strengthened the collection feedback collation and review of material information to ensure the truthfulness accuracy completeness and timeliness of the information disclosed.Nomination Reviews the diversity policy for board members examines the structure and composition
Committee of the board assesses the independence of independent non-executive directors and provides professional recommendations.Reviews the overall development strategy and sustainable development strategy of
Strategy Committee the Company supervises and guides the implementation of ESG work and makes
recommendations to the Board.Risk Management Guides the Company’s overall risk management work evaluates the integrity of the risk
Committee management system (including ESG risks) and issues opinions and assists the Board
in performing its risk management functions.Board Diversity
In order to enhance the efficiency of the Board and maintain high standards of corporate governance the
Company has adopted a Board Diversity Policy which sets out the objectives and approaches to achieve and
maintain diversity on the Company’s Board. Pursuant to the Board Diversity Policy the Company seeks to
achieve Board diversity by considering a number of factors including but not limited to gender age cultural and
educational background ethnicity professional experience skills knowledge industry and regional experience
and length of service. The implementation of this policy is overseen by the Nomination Committee which reports
its findings and recommendations to the Board of Directors. The Company periodically reviews relevant policies
and objectives to ensure they remain appropriate for determining the optimal composition of the Board.
16SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Strengthening Risk Management
SF has established a sound risk management and internal control system to strengthen and standardize its internal management continuously enhance the effectiveness of risk prevention and control and promote the Company’s sustainable and
healthy development. Specifically the Company proactively identifies and assesses environmental social and governance (ESG) risks arising from its operations and development and formulates corresponding response strategies to effectively reduce
operational risks and losses. The Company’s compliance management system has obtained ISO 37301 international standard certification and continues to refine relevant mechanisms to ensure its compliance management and risk control capabilities
remain industry-leading.Risk Management System Risk Management Practices
SF has established the Risk Management Committee of the Board of Directors as a specialized risk management body. It SF places high importance on risk management. By establishing a comprehensive risk management system that spans
sets the direction for and guides the Group’s risk control and compliance management work on behalf of the Board. Under the entire operational lifecycle and adapts to diverse business needs combined with digital systems scientific control
this committee the Risk Committee serves as a professional decision-making body for the overall governance and oversight mechanisms and efficient execution capabilities the Company builds a robust barrier for compliant operations and steady
of the Company’s risk control and compliance. Led by the Company’s Chief Financial Officer (CFO) it is primarily responsible development effectively mitigating potential risks.for deliberating and making decisions regarding the establishment of the risk management framework including its systems
processes authorization mechanisms as well as the prevention and response to major risks. The Risk Committee reports
to the Risk Management Committee of the Board of Directors quarterly and annually. The Company’s Risk Control and Enhancement of Digital Risk Management Capability
Compliance Office coordinates the oversight of risk control and compliance while leaders of each functional department BG
(Business Group) BU (Business Unit) and region bear the primary responsibility for relevant risk control. Their duties include
formulating specific risk control measures and implementation guidelines and overseeing the identification assessment SF has continued to strengthen its digital risk management capability by continuously upgrading the Company’s risk
and execution of daily risk control measures. management system risk event management system internal control and compliance system and compliance management
system. Through continuous iterative optimization of the systems SF has achieved the digitization of the entire chain from
SF attaches great importance to risk management establishing and continuously optimizing a comprehensive and efficient risk identification assessment monitoring early warning response to closed-loop management thereby effectively improving
risk management system to ensure the steady development of the Company. The Company carries out risk identification the efficiency of risk identification and management.work every year. The functional leaders BG BU and regional leaders combining the internal and external environmental
conditions faced by the business identify internal management risks (including strategic operational financial market and In 2025 overseas business risk management emerged as a key focus within the Group’s risk management framework.legal compliance risks) and external environmental risks (including changes in macroeconomic environment impacts on The Company systematically deepened the construction of its overseas risk control and compliance system covering
natural environment adjustments to national laws and regulations changes in industry regulatory policies and evolution multiple dimensions including risk identification and control standardization of systems and processes digitalization of
of social customs and concepts). risk management and normalization of production safety. The Company dynamically updated its risk register established
overseas risk management rules and compliance operation guidelines and continuously iterated and optimized multi-
The Company’s Risk Control and Compliance Office coordinates the optimization of the risk management framework and dimensional risk dashboards. Through technology-enabled solutions it empowered business units to proactively manage
control measures. It organizes the designated risk owners to assess the probability and impact of risks and monitors risk risks and respond with foresight gaining a more comprehensive and clear understanding of the full risk landscape. This
trends through models to establish risk management priorities. Identified existing and potential risks are then summarized enhanced the precision and efficiency of risk management ensured compliant operations and safeguarded the steady
and reported to the Risk Committee. The Risk Committee conducts a comprehensive risk assessment of the Company expansion of overseas business.annually reviews the Company’s annual risk report and determines the Company’s risk appetite and response strategies.The Company’s internal audit department regularly reviews risk management controls and procedures and reports the
findings to the Group’s Audit Committee. This ensures the comprehensiveness and accuracy of risk assessments and the
effectiveness of the risk management processes.Board Risk Management Committee Risk Management System Risk Event Management System
Strategic Decision-Making Level
Strategy Development and Guidance Responsible for monitoring risk management Responsible for closed-loop management of
Risk Committee and control in priority areas of the Company. corporate risk incidents.The Company’s Risk Control and Compliance Office Centralized Management LevelFramework Optimization and Oversight
Centralized Oversight Reporting
Coordination Feedback Internal Control and Compliance System Compliance Management System
Evaluation Optimization
Responsible for conducting regular internal Responsible for intelligently capturing and
control inspections of the Company’s business analyzing external regulatory requirements and
The Company’s Functions BGs BUs and Subsidiaries Implementation Level processes and supervising rectification. public opinion information and monitoring the Routine Management and Execution quality of internalization of external regulations.SF Risk Management Governance Structure
17SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Closed-Loop Management of Risk Events Risk Culture Development
SF has established a sound risk event management system which realizes graded risk event management SF continues to deliver diversified risk training and empowerment programs. Through in-person specialized
through risk labels and strengthens the whole-process risk management of pre-event prevention in-event workshops online self-directed learning and certification exams the Company provides foundational risk
response and post-event review so as to enhance the efficiency of risk event management and control. management frameworks and principles training to all employees. Additionally it organizes specialized advanced
courses focusing on critical risk areas such as product and service quality export controls and trade sanctions
workplace safety and information security. In 2025 the Company delivered a cumulative total of over 86830
Pre-event Prevention hours of specialized training courses achieving 100% coverage of risk-specific training for new employees.Meanwhile the Company has integrated risk management performance into its performance evaluation
Conduct regular risk assessments to understand the current status of risk control. Continuously optimize risk system. At the group level risk monitoring and assessment of business units are conducted across dimensions
management mechanisms to reduce the probability of risk events from the source. including sales risk production safety capital security information security and brand reputation. At the
business unit level reverse evaluation of the group’s risk management organization is performed based on risk
management processes standards tools and training to establish a closed-loop management mechanism.In-event Response Throughout product and service development the Company deeply integrates risk management into its full
life cycle management. During the initiation and review of new product development and service projects
Coordinate multi-departmental joint responses to handle risk events according to local conditions minimizing the Company systematically conducts risk identification assessment and control through cross-departmental
the negative impact caused by such events. collaboration and standardized processes. This ensures that products comply with risk management
requirements throughout their entire life cycle – from design and launch to iteration and discontinuation.Post-event Review
Collaborate with relevant departments to summarize event issues and identify root causes. Drive the
development of optimized solutions to continuously strengthen the foundational capabilities of risk
management. Over 86830 hours 100%
Cumulative hours of risk compliance Coverage rate of new employees in risk
training courses carried out in 2025 compliance training
Based on risk event management the Company carried out a targeted refresh of the risk scenario and
deposited 26 risk response management and control plans in 2025. Based on the summarized response
experience of historical risk events the Company considered medium- and high-risk points into business
scenarios to prepare corresponding risk plans achieving 100% coverage of medium and high-risk points.
18SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
ESG Risk Identification and Management
SF regularly identifies and updates its risk inventory fully integrating Emerging Risks
ESG risks into its existing tiered risk categories (Level 1 Level 2
and Level 3). The Company’s ESG risk management structure aligns Guided by the Company’s risk management framework the Company proactively identifies and addresses emerging risks. The following are two
with its overall risk management organizational framework with the emerging risks that we consider critically important.Risk Management Committee of the Board of Directors serving as
the highest risk management body responsible for the identification
prevention and control of ESG risks. Risk Categories Risks Associated with the Application of Artificial Intelligence (AI) Regional Data Compliance Risks
SF incorporates various ESG risks – including data compliance trade SF has extensively integrated artificial intelligence into core Global data regulation is becoming increasingly fragmented and
compliance intellectual property anti-corruption occupational health processes such as marketing content generation intelligent stringent with rules in key countries and regions diverging as
and safety human rights and human resource management and Risk customer service and cross-border customs documentation they tighten. The Company’s cross-border logistics operations
environmental risks – into its risk management framework and regularly Description review. The Company must adhere to domestic and international involve the cross-border flow of data including order and waybill AI ethics guidelines to ensure the safety controllability fairness sender/recipient information significantly elevating data compliance
assesses and monitors them. These include climate-related transition and transparency of its AI systems. requirements.risks carbon target management risks and energy use monitoring
risks among other environmental risks. Inadequate data compliance management could expose the
In the context of rapid AI adoption and expanding use cases Company to overlapping legal reputational and supply chain
fragmented governance could lead to risk accumulation and risks. Legally and financially unlawful cross-border data transfers
Risk Impact proliferation significantly increasing compliance and governance may trigger substantial fines. Reputationally data breaches or costs. The Company must therefore establish and enhance mishandling could damage brand trust and lead to loss of key
governance and control over the entire life cycle of its AI clients. Within the supply chain misaligned compliance standards
technologies. with partners could disrupt cooperation and trigger cascading
effects.
1) Build a unified management platform: Institutionalize key
risk mitigation capabilities within systems through platform
development and standardized processes to enable scaled
implementation.
2) Implement policies and standards: Introduce the Measures 1) Establish a data compliance management system based
for the Safety Management of Application Recommendation on global data protection regulations. Continuously monitor
Algorithms and the AI Safety and Compliance Management regulatory developments formulate compliance strategies and
Standards to define the safety and compliance baselines for standards and optimize the Group’s compliance framework.R&D and product teams throughout the algorithm AI and large Conduct systematic regional compliance assessments to
language model application process. identify global gaps and promptly enhance controls. Execute personal information protection audits to ensure the effective
3) Establish full life cycle controls for AI: Develop a governance implementation of controls across all regions.
system covering the entire life cycle of AI models and
applications. Implement a tiered classified and labeled 2) Refine the privacy compliance risk assessment mechanism.Response management approach for AI models/applications. Apply Develop standardized processes for privacy compliance
Measures differentiated controls based on risk levels determined by factors and cross-border data transfer risk assessments. Implement
such as application scenarios data sensitivity impact scope differentiated controls considering factors such as data
and jurisdiction. classification and categorization business scenarios and security safeguards. Enable dynamic auditing of cross-border
4) Enhance risk identification and mitigation: Establish a routine data flows and data fields via a unified cross-border data
risk identification and assessment mechanism. Deploy AI safety management platform.tools (guardrails) to ensure the robust and ethically compliant
operation of AI systems. 3) Deliver systematic compliance training and foster a culture of compliance. Provide information security and privacy protection
5) Conduct employee training and awareness programs: training in key regions interpreting local data compliance
Communicate AI regulatory developments and safety/ laws and internal security requirements to elevate compliance
compliance requirements to all employees via various formats awareness across all business functions.including e-learning online seminars live sessions and internal
channels. Provide specialized training for AI developers to
strengthen their AI safety and compliance awareness and
competencies.
19SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Upholding Business Ethics
SF consistently adheres to the highest standards of compliance and
business ethics maintaining a zero-tolerance policy toward any conduct that Anti-Monopoly and Anti-Unfair Competition
violates these principles. To ensure the effective implementation of business
ethics and compliance management the Board of Directors oversees and SF strictly complies with all applicable antitrust and unfair competition During the reporting period the Company was not subject to any
reviews significant matters in these areas and ensures the effectiveness of laws and regulations and is committed to maintaining a credible fair investigations or litigation arising from the conclusion or implementation
the Company’s internal control system. The Chief Financial Officer assists and open market order and business environment. In 2025 in response of monopoly agreements nor did any major legal disputes related to
the Board in advancing compliance management including efforts against to increasingly stringent regulatory trends both domestically and unfair competition or antitrust matters occur. Overall competition-
corruption money laundering and unfair competition. The Chief Audit internationally the Company systematically enhanced its antitrust and related compliance risks are well managed and under control providing
Executive is responsible for organizing internal audits supervising and unfair competition compliance management system covering the entire a solid foundation for the Company’s healthy business development.reviewing internal corruption practices and other misconduct and reporting lifecycle from policy development and business review to technical
regularly to the Board’s Audit Committee. Supported by this governance safeguards and capability building.framework SF actively upholds a free and fair market environment steadily
advances its integrity system and lays a solid foundation for fostering an
ethical business ecosystem and achieving sustainable development.Policies and Systems
Code of Business Ethics The Company issued and implemented the Antitrust and Competition Law Compliance Management System (Version 2.0) which serves
SF consistently upholds the highest ethical and integrity standards and is as the foundational document in this area clearly defining compliance boundaries and the responsibilities of all personnel.committed to sustainable and healthy operations. The Company publicly
discloses its SF Business Conduct Guidelines Anti-Corruption Statement
and Conflict of Interest Statement on its official website. These documents Business Process Control
apply to all employees of SF and its global subsidiaries and branches
urging everyone to respect laws and regulations adhere to internal systems The Company strengthened oversight in two key dimensions: promotional compliance and core business activities.and work with partners to uphold integrity and operate in full compliance.In 2025 the Company revised its Employee Handbook adding policies
on intellectual property protection and compliance anti-corruption anti- Pre-release Compliance Review for Promotions Mandatory Assessment for Core Business Activities
harassment and anti-discrimination as well as business entertainment and The Company has established a mandatory pre-release The Company requires all projects involving competitor
travel. The updated handbook provides employees and management with compliance review process for all external promotional cooperation agreements exchanges of competitor
specific details and operational guidance on standards of acceptable conduct materials such as online advertisements and product information investments financings or mergers and
and approval procedures. Annually the Company conducts business ethics pages. It also employs technical tools to conduct regular acquisitions that may constitute a concentration under training for all employees including part-time and contractors covering
compliance requirements such as the Business Conduct Guidelines and scans and keyword monitoring of content on third-party
antitrust laws as well as any other activities potentially
in violation of the Anti-Monopoly Law and the Anti-Unfair
anti-corruption policies. This ongoing training continuously reinforces platforms to proactively identify and address potentially Competition Law to undergo a competition impact
company-wide compliance awareness. non-compliant statements. assessment by the Legal Affairs Center prior to key decision
points to ensure compliant and prudent operations.Technical Safeguards and
Confidentiality Management
The Company strictly enforces information classification and access controls implements physical access restrictions for secured areas
and incorporates standard confidentiality and intellectual property clauses into key business cooperation agreements. No significant
incidents involving the leakage of trade secrets occurred during the year.Compliance Culture Building
The Company organized 17 dedicated training sessions on antitrust and unfair competition throughout 2025 covering new hires regional
business teams and legal personnel thereby enhancing their awareness of competition compliance and ability to identify related risks.
20SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Anti-Commercial Bribery and Anti-Corruption
SF integrates anti-corruption management into its daily operations and maintains a zero-tolerance policy toward any form of corruption bribery or fraud. Through initiatives such as anti-corruption risk assessments audits and
education programs the Company continuously strengthens its business ethics and compliance controls in areas including anti-corruption anti-bribery and anti-money laundering. An internal audit department independent of
business lines monitors the implementation of anti-corruption policies and internal controls. Furthermore the Company has established an Anti-Corruption Compliance Committee and a supporting Review Panel to ensure the
effective operation of its anti-corruption compliance framework. During the reporting period the Company did not identify any incidents of embezzlement bribery or fraud that could have a material impact on its operations.In accordance with regulations the Company addressed three employee conflict-of-interest violations and maintained a clean record with zero identified violations of anti-money laundering regulations.Integrity Management System
The Company has established a multi-tiered integrity oversight framework that extends from the Board’s SF’s Employee Handbook and Integrity Handbook clearly define integrity-related conduct expectations both
Audit Committee and headquarters supervisory departments down to the business units and regional inside and outside the Company specify violations and corresponding disciplinary measures and provide
branches. Within these operational units three additional lines of oversight have been implemented creating all employees with a clear and reliable code of conduct to guide their daily behavior. To foster a fair just
a comprehensive integrity management system that permeates the entire organization and all roles. and transparent work environment SF has established a comprehensive anti-corruption system based on
the principles of “No Courage No Ability and No Intention” strictly preventing and penalizing violations and
To enhance oversight effectiveness the Company has also constituted two dedicated committees: the corrupt practices such as bribery embezzlement and fraud.Executive Disciplinary Inspection Committee led by the Chief Executive Officer (CEO) the Chief Human
Resources Officer (CHO) and the Chief Audit Executive (CAE); and the Employee Disciplinary Inspection In 2025 the Company actively encouraged all employees to sign the Anti-Corruption Commitment Letter
Committee led by the Chief Audit Executive (CAE) the head of the Culture and Employee Relations Office achieving a signing rate of 99.5%.and the head of the Audit and Supervision Office. These committees are responsible for the integrity
and disciplinary oversight of senior management and other employees respectively forming a top-down
comprehensive supervision mechanism.SF “No Courage No Ability and No Intention”
Anti-Corruption Framework
Executive Disciplinary Inspection Employee Disciplinary Inspection
Committee Committee
Led by the CEO the CHO and the CAE. Led by the CAE the head of the Culture and Creating a strong deterrence environment of “No Courage”
Employee Relations Office and the head of
the Audit and Supervision Office.Proactive anti-fraud measures
Professional investigation and enforcement
Three Defensive Lines for Strict accountability system
Integrity Supervision
The First Line Building a governance framework of “No Ability”
Business owners/
Business areas/branches outlets
Organizational governance
The Second Line Systems and standards
Democratic oversight
Regulatory department at the Business
headquarters for each segment Areas/
Legal affairs/Compliance/Internal Branches
Fostering an integrity culture of “No Intention”
The Third Line Employee Risk Control
Relationship Group Group of Operation
Company Audit of Human Resources and Management Department Department Integrity commitment signing Specialized learning
Awareness communication and education Integrity culture
SF’s Defensive Lines for Integrity Supervision
21SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Anti-Bribery and Anti-Corruption Risk Management
SF has established a systematic anti-corruption risk assessment mechanism to identify and assess potential For key high-risk business areas such as procurement and supplier management the Company has established
risks across all business areas develop targeted mitigation measures and thereby continuously strengthen its an integrated full-cycle integrity risk control framework encompassing prevention real-time monitoring and
anti-corruption risk management. The Company conducts annual reviews of the effectiveness and compliance post-event accountability.of its internal controls to prevent and promptly detect bribery and corruption risks. The results of these reviews
and corresponding response measures are reported directly to the Board’s Audit Committee. Furthermore
the Company regularly conducts integrity index surveys to comprehensively assess the effectiveness of its
internal integrity initiatives. Internally the Company conducts regular integrity training and case-based ethics alerts for procurement
and related management staff and requires them to sign the Anti-Corruption Commitment Letter to clearly
Concurrently the Company analyzes past misconduct cases to identify root causes and conducts organization- define acceptable conduct.wide scans using advanced data analytics tools. Throughout the year these efforts led to the proactive
identification of over 600 red flags significantly enhancing anti-corruption risk prevention and control Externally the Company strictly controls commercial partner onboarding. In accordance with the SF Prevention
capabilities across its business units. Group’s Anti-Corruption Compliance Policy for Commercial Partners it performs multi-layered assessments including anti-corruption due diligence reviews of historical compliance records and ultimate beneficial
ownership (UBO) analysis. The Group’s Risk Control Department leads the development of a risk screening
Anti-Corruption Management in Procurement and Supplier Management database that consolidates data from adverse business registries litigation records and industry exclusion lists. This database supports risk assessments of potential partners and standard anti-corruption clauses
are embedded in all contracts.SF continuously enhances its compliance management system for commercial partners. In 2025 the
Company issued the SF Group Anti-Corruption Compliance Policy for Commercial Partners establishing a
comprehensive anti-corruption screening mechanism. This policy clearly defines the anti-corruption compliance
norms and processes for internal units when engaging with commercial partners systematically mitigating
corruption risks in business collaborations. To address the specific needs of its overseas operations the
Company formulated the Code of Conduct for Overseas Procurement Personnel. This code standardizes the
professional ethics of the Group’s overseas procurement staff ensuring the legality compliance and fairness The Company relies on risk control models to monitor commercial partners’ compliance performance. By
of procurement activities safeguarding the Company’s interests and upholding a positive corporate image. integrating multiple information sources – such as internal reports audit findings and external sentiment – it
proactively identifies risks and provides management with targeted improvement recommendations.Regarding supplier anti-corruption management the Company publicly discloses the SF Supplier Code of
Conduct on its official website. This code requires suppliers to establish sound compliance management Real-Time The Company maintains an anonymous reporting channel ensuring its accessibility confidentiality and
structures and anti-corruption policies ensuring their full adherence to SF’s standards. Simultaneously Monitoring the protection of whistleblower rights. All reports are promptly acknowledged and thoroughly investigated.through the Transparent Procurement Notification the Company clarifies the mutual responsibilities and
rights for maintaining integrity setting a high standard for business ethics. Partners are required to sign the An annual anti-corruption due diligence mechanism for suppliers has been established applying differentiated
Integrity Agreement to jointly foster an integrity value chain. In 2025 the Company revised the anti-corruption scrutiny based on risk levels. Continuous oversight of supplier compliance is ensured through periodic document
clauses within the Integrity Agreement further clarifying prohibited conduct liabilities for breach and oversight reviews and dynamic performance evaluations thereby verifying partners’ adherence to integrity commitments.mechanisms thereby strengthening compliance obligations for suppliers.
100 Post-Event The Company strictly enforces its debarment policy against suppliers found to have engaged in violations 2025 Integrity Agreement Signing Rate (Cooperative Suppliers) % such as commercial bribery fraudulent bidding or material breach of contract. Upon confirmation the relevant Accountability business unit is directed to terminate cooperation immediately ensuring closed-loop risk management.
22SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Anti-Bribery and Anti-Corruption Audit Whistleblowing Management
SF designates anti-corruption as a key audit area. Through systematic risk assessment and auditing the SF attaches high importance to whistleblowing management and the protection of whistleblowers. The
Company ensures the effectiveness of its internal anti-corruption management system and upholds compliant Company has established a confidential reporting and incentive mechanism to encourage employees
operations. Over the past three years internal audits (including business ethics audits) have achieved 100% and external stakeholders to actively provide information on potential misconduct thereby jointly
coverage of the Company’s operational sites ensuring comprehensive oversight. Furthermore SF annually upholding a fair and transparent business environment. The Company strictly adheres to its Reporting
engages an independent third-party audit firm to conduct an independent review of its business ethics Management Measures. All personnel with access to reported information are required to maintain
identifying and assessing potential business ethics risks across its operations. strict confidentiality. SF strictly prohibits any form of retaliation against whistleblowers. Violators will be
subject to severe disciplinary action up to and including legal liability. The head of each organizational
Anti-Bribery and Anti-Corruption Education unit serves as the primary person accountable for protecting witnesses (including whistleblowers) and must take reasonable measures to safeguard their rights and interests.SF continuously deepens its anti-corruption education through a diversified and innovative integrity training
system. The Company conducts training for all employees (including part-time and contractors) via various
channels including internal communications Culture & Integrity Forums the ‘Dual 100’ Learning Initiative (100% SF’s Reporting Management Measures stipulates
participation 100% pass rate) and specialized training courses. Employees are also organized to visit disciplinary that the confidentiality of whistleblower information
case study centers leveraging real case studies to reinforce disciplinary awareness and ethical boundaries. includes including but not limited to the following:
In 2025 the Company actively advanced its “Law-in-Enterprise” training program inviting professional legal
institutions to deliver lectures on integrity. This initiative deeply integrates compliance requirements with the
integrity culture and uses typical cases to deliver targeted education to frontline staff achieving comprehensive All personnel receiving whistleblowing Personnel involved in the follow-up
and regular coverage. Tailored to regional business characteristics the Company further enhanced localized reports must forward the information of reports must not disclose any
anti-corruption awareness campaigns providing targeted briefings to frontline personnel based on concluded
violation cases. During the reporting period units across the network independently published over 400 to the designated reporting report-related information to other
integrity-related communications continuously fostering an organizational culture of integrity and probity. department and are prohibited from individuals.disseminating it arbitrarily to others.Project Name Target Audience Content / Format
Culture & Held periodically to reinforce
Integrity Forum Senior Management integrity culture and compliance fundamentals
Investigation findings and proposed Investigation reports and evidential
Anti-Corruption Middle and Junior Focuses on high-frequency complaints and topical issues for actions must not be disclosed prior materials must not be arbitrarily Seminar Management specialized learning to the assessment and public disseminated to other personnel.announcement of disciplinary
‘Dual 100’ Learning Frontline Staff & Junior Lectures based on practical frontline decisions.Initiative Management cases requiring 100% participation and a 100% pass rate on assessments
Training by External Sessions conducted by invited
Legal Experts Core Business Departments external legal experts on The Company’s internal audit department is responsible for the centralized intake and logging professional integrity topics of all reports. Depending on the nature of the incident it refers reports to the relevant functional
departments for review or leads investigations as necessary. For all reports received the Company
Visit to Ethics Core Business Departments Conduct on-site visits and learning strictly enforces its “Triple Ones” timeliness requirements to ensure prompt response and handling.Awareness Exhibits High-Risk Roles (e.g. Procurement Capacity Mgmt.) and on-site warning education
Following investigation and verification the Company imposes appropriate disciplinary measures on
responsible parties based on the severity of the violation. Cases involving suspected illegal activities
are transferred to judicial authorities.Supplier Integrity Commercial Partners / Integrity presentations delivered
Briefing Suppliers during supplier conferences
Integrity Training Programs in 2025
23SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Reporting Channels
Receive a Whistleblowing Report SF Whistleblowing Case Handling Process
SF provides 7/24 reporting channels for internal and external stakeholders and encourages employees
suppliers and other stakeholders to report violations of business ethics publicly or anonymously through
Initial Assessment & Triage (If the report is deemed out of scope) channels such as email the official website letters and hotlines. In 2025 to support global operations the
(If the report is accepted Company extended its compliance reporting channels to multiple judicial jurisdictions with communication
for further action) support available in both Chinese and English.Preliminary Investigation Notification to Reporter on Case Acceptance/Closure
Review of Preliminary Investigation (If the decision is not to proceed with a formal case)
(If the decision is to proceed Email sf5198@sf-express.com
with a formal case)
Issue Formal Investigation Mandate
Website Home - About Us - I want to report (Address: https://www.sf-express.com)
Conduct Formal Investigation
External stakeholders and
all internal practitioners
SF Headquarters – Audit Committee
Submit Investigation Report Mailing (Received)
(If the investigation
concludes “No Violation”)
Review of Investigation Report Case Filing & Closure
(If the investigation concludes Fengsheng Services – I want to report
“Violation Found”) Corrective Action Loop
Issue Investigation Findings Implementation of Outcomes
Labor Union
Hotline 4006 883 783 All internal
employees
Provide Final Feedback to Reporter
To cultivate a corporate culture of “collective oversight universal integrity” the Company continuously
“Triple Ones” Requirements strengthens awareness campaigns on the proper use of its reporting channels.Response within Case confirmation Completion of the Reinforce multi-channel communication to Advocate for escalation through proper
one working day within one week investigation within one month raise employee awareness and engagement. channels and identified reporting and
establish a positive incentive mechanism.Respond to the whistleblower within Confirm whether a case needs to Complete the investigation of the Through internal platforms such as “Fengsheng” It clarifies the principle of “reporting throughone working day upon receipt of be filed for investigation within one report and provide the results within it regularly publishes integrity-themed content. Employee appropriate levels for tiered handling”
the report. week upon receipt of the report. one month of confirming the case. Each relevant post concludes with a dedicated Training and encouraging employees to first utilize their own “Reporting Channel Reminder” section that clearly Awareness on unit’s reporting channels when issues arise.lists group-wide and regional reporting contacts Reporting When identified reports are verified the Company
and explicitly advises employees to contact the grants appropriate rewards in accordance with
internal audit department directly for matters the Reporting Management Measures. This
involving corrupt practices. ensures the timely acknowledgment and closed-
In 2025 the Company received over 600 whistleblowing reports. For all effective reports it engaged in loop management of reports thereby boosting
thorough communication with whistle-blowers to understand the incident details and gather relevant evidence. employees’ motivation to participate.Following investigation and verification prompt feedback on the handling outcome was provided achieving
a follow-up rate of 100%. During the reporting period no breaches of whistle-blower confidentiality occurred.
24
Target groups
Reporting channelsSF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Intellectual Property Protection
SF places a high priority on intellectual property (IP) protection. It strictly complies with laws and regulations including the Patent Law of the People’s Republic of China and the Trademark Law of the People’s Republic of
China and has established a rigorous standardized IP management system. This system implements a scientific and effective tiered categorized and differentiated management approach to ensure compliant and orderly IP
utilization thereby safeguarding the Company’s IP rights comprehensively and providing a solid foundation for its continuous innovation and development. In 2025 the Company advanced its IP focus from foundational system
building to strategic value enhancement. It formulated the Management Regulations of the Group Patent Review Committee formally establishing the Committee’s organizational structure responsibilities and workflow. This
provides institutional assurance for the patenting of core technologies and the identification and cultivation of high-value patents. Furthermore the Company updated key policies such as the Operation Guide for Overseas
Business Brand Use Authorization supporting brand consistency management and risk prevention within its global strategy.In 2025 the Company established a three-tier IP training system grounded in “regular compliance training company-wide awareness promotion and focused deepening in key areas.” The system covers all employees with
particular emphasis on key roles and core departments including technology R&D legal product operations and brand management. Throughout the year the Company conducted 28 dedicated IP training sessions reaching
tens of thousands of participants. These comprised 6 sessions of regular compliance training for key positions 10 sessions of company-wide awareness promotion and 12 sessions of in-depth customized training for key
departments. This ensured training resources were precisely aligned with the needs of different roles and levels deepening organization-wide understanding of IP compliance management and innovation protection.Group photo of participants in an intellectual property protection training session
25SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Ensuring Information Security
Information and Network Security Management System
SF strictly complies with national laws regulations and industry norms In 2025 in response to refined data governance requirements and The Company’s information and network security management system
maintaining constant high vigilance against information and network business developments the Company revised key policies including holds ISO/IEC 27001 Information Security Management System (ISMS)
security risks while continuously enhancing its internal management the Data Asset Classification Grading and Security Management and ISO/IEC 27701 Privacy Information Management System (PIMS)
system in these areas. Measures the Information Security Reward and Discipline Policy certifications covering its core business operations. Furthermore the SF
the Information Security High-Risk Behavior Management Measures Express App obtained the 2025 Classified Protection of Cybersecurity
The Company has established a three-tier information security and and the SF App Privacy Compliance Standards. Simultaneously to Level 3 certification and the CCRC Mobile Internet Application (App)
privacy protection management structure consisting of the decision- address regulatory mandates and mitigate compliance risks arising Android/IOS Security Certification providing comprehensive safeguards
making level management level and executive level. The Information from the widespread adoption of emerging technologies such as for user data security. Additionally the Company’s core supply chain
Security and Privacy Protection Committee serves as the highest algorithms AI and large language models (LLMs) the Company management systems for orders warehousing and transportation
decision-making body responsible for decisions appointments and introduced the Measures for the Security Management of Application were professionally audited during 2025 and obtained a System and
directives concerning information security and privacy protection. The Recommendation Algorithms and the AI Security and Compliance Organization Controls (SOC) 1 Type 2 report. This report attests to
Group’s Information Security and Privacy Protection Working Group Management Standards. These new standards clarify the security and the the design and operating effectiveness of the relevant internal
operates under this Committee. Under the overall leadership of the compliance baselines for product development units to follow when controls thereby further strengthening customer trust in the security
Chief Information Security Officer (CISO) the Working Group supports utilizing algorithms and LLMs. and compliance of SF’s supply chain services.the Company’s information security and privacy protection governance
and ensures the efficient operation of the management system. Its
responsibilities include coordinating group-wide efforts and leading the
development and day-to-day operation of the network security data
security and privacy protection frameworks.Information Be responsible for information security and Decision Security and Composed of the CEO the CFO and privacy protection decisions appointments and maker Privacy Committee the CTO of the Company instructions as well as supervision and audit of personal information protection related matters
ISO 27001 Certification ISO 27701 Certification Classified Protection
of Cybersecurity Level
3 Certificate (Core
Information Operations and Online
Security Led by CISO it is composed of the Business)
Management and Privacy Information Security Center the Legal Coordinate and organize the Company’s information
Protection Affairs Center and various business security and privacy protection governance
Working Group lines
Departments
Implementation and Business Composed of functional departments Implement specific information security and privacy
Units and business units protection governance measures
CCRC (Android) CCRC (IOS) SOC1 Type 2 report
Certificate Certificate
26SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Maintaining Network and Data Security Personal Information Protection
SF continually invests in enhancing its network and data security capabilities. This investment is driven SF attaches great importance to the protection of customers’ personal information security. Based on laws
by its core commitment to providing users with safe stable and reliable products and services which in regulations and industry best practices SF has built a comprehensive privacy protection management system
turn rigorously ensures business system continuity and comprehensively meets all regulatory compliance formulated and continuously improved a personal information security and compliance system covering the
requirements. entire life cycle of data and ensured personal privacy protection work is carried out in an orderly manner.To continuously strengthen its security posture the Company conducts regular data security audits. Based
on the latest regulatory requirements these audits facilitate a comprehensive assessment of internal In order to implement the protection of personal information the Company has taken diversified measures
and external data security risks with findings used to continuously improve the information and network covering the entire digital life cycle to effectively protect customers’ privacy and security with a responsible
security management system. In parallel the Company performs routine network vulnerability assessments attitude. In 2025 there were no major personal information security incidents in SF.and conducts practical cybersecurity simulation exercises systematically enhancing its overall defensive
capabilities and emergency response efficiency for security incidents.Regarding internal information security controls the Company has integrated information and network SF keeps improving its data security technology capabilities including unified access management Strengthening
security compliance into the performance evaluation system for all employees. It has formulated and issued platforms automated encryption/decryption platforms log management and analysis tools and the Technical
the Information Security Reward and Discipline Policy (V13.0). This policy clarifies core principles and the personal data masking functions. The aim of these efforts is to protect users’ personal information from Foundation
reward/discipline mechanism while detailing the applicable rules specific categories typical scenarios unauthorized access tampering disclosure damage or loss. for Privacy
and procedures for penalties related to violations. This framework further standardizes employee high-risk Protection
operations helps prevent security incidents at their internal source effectively safeguards user data and
bolsters defenses against risks such as unauthorized access and malicious attacks.During the year the Company conducted multiple data security due diligence reviews of third-party vendors.These reviews covered areas including foundational security (qualifications certifications information Personal Based on the data lifecycle approach SF applies classified and tiered management to the personal
security policies HR security network security) data and privacy protection system security and AI security Data Security information involved in its business activities. SF takes protective measures such as encryption de-
compliance. No major non-conformities were identified. Management identification and access control during the data collection transmission use and storage stages in Throughout accordance with the sensitivity of the data and the principle of data minimization. These measures aim
the Lifecycle to effectively protect personal information security.In 2025 the Company experienced no major data security incidents.SF Data Security Risk Management
SF uses a security incident investigation and response platform to monitor both internal and external Security
The Company conducts annual monitoring and evaluation of its information threat signals targeting sensitive data in real time. This platform allows for the prompt identification of Incident abnormal operations and high-risk activities that may pose the risk of personal information leakage. Once
Cybersecuri ty Level systems’ security and compliance against national and industry standards.Detection and
an abnormality is identified SF promptly initiates an investigation and takes measures to minimize the Response
Protection Assessment In 2025 it engaged an external agency to perform the Cybersecurity Level risk of personal information leakage at the source.Protection (CLP) assessment which was successfully passed. This led to the
renewal of the CLP filing and all identified risks were addressed.Internal audits of the data security management system are conducted in
accordance with standards including ISO 27001 and ISO 27701. These audits
Internal Audit of the review the system for compliance applicability and sufficiency with timely Personal SF has established a personal information rights request response mechanism. Before collecting and Information processing users’ personal data in its business it timely informs users of their personal information rights
Management System corrective actions taken on any findings. In 2025 the Company completed one Rights and other relevant information through means such as providing privacy policy consent checkboxes and
information security internal audit and successfully passed the ISO 27001:2022 Response device pop-up notices. It also responds to users’ requests to exercise their rights within the time limits
and ISO 27701:2019 surveillance audits. Mechanism required by law.The SF Security Emergency Response Center (SRC) is dedicated to protecting
Securi ty Emergency user information security. It maintains a public bug bounty program through the
Response Center (SRC) SRC platform encouraging the user community to report security vulnerabilities
in SF’s systems and services thereby enhancing overall security.SF masks the fields on the express waybill that contain users’ personal information namely the names
contact details and address details of the sender and recipient. In addition couriers and customer service Privacy
The Company continuously improves its emergency response mechanisms
Emergency Response representatives communicate with customers using virtual phone numbers. This effective management
Waybill
for information and network security incidents. In 2025 to address typical
Mechanism for Data of the risks associated with data sharing enhances users’ privacy experience.Protection
cybersecurity threats and potential data breach scenarios it developed several
Security and Network specific contingency plans. These plans were incorporated into the appendix of
Security Incidents the Network Security Incident Management Standard further refining its tiered
and categorized emergency response framework. Measures to Protect Personal Information
27SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Information Security Culture Building
SF has established a multi-layered diverse and effectiveness-focused cybersecurity awareness and training system aligned with national and In 2025 the Company conducted
industry laws regulations policies and standards. The Company innovates in formats and content delivering integrated awareness campaigns
through channels such as posters the internal platform and security portals. These campaigns are designed to bridge online and offline 21 network security technology sharing activities and
engagement and integrate security with business processes. Simultaneously employees are encouraged to report suspicious incidents via email
internal communication tools and security operations platforms fostering a collective culture of security and continuously elevating company-wide 24 security awareness promotion activities covering
cybersecurity awareness and literacy. all employees with a cumulative training time of more
Network Attack and Defense Drills than 1400 hours which significantly enhanced
To continuously enhance its cybersecurity defenses and emergency response capabilities SF conducts annual Red Team/Blue Team exercises. employees’ information security protection awareness
These drills simulate classic external attack scenarios enabling the Company to proactively identify and address vulnerabilities review performance and capabilities.and implement improvements. This process holistically strengthens the security team’s collaboration and incident response skills solidifying the
Company’s overall data security posture.The Company conducts these annual exercises to build a practical cyber defense validation framework covering network and data security. By
leveraging collaboration between internal and external security teams the exercises simulate real-world threat scenarios – including phishing
zero-day exploits supply-chain attacks and data breach simulations – to comprehensively validate the effectiveness of the Group’s cybersecurity
operations and the defensive readiness of each region.Information Security Training
SF conducts annual company-wide information security training to elevate employee awareness and capabilities. In 2025 with a focus on enhancing
data security governance awareness the Company delivered specialized training to R&D and information security personnel on data classification
grading and security framework development. Aligned with its internationalization strategy SF also provided targeted sessions on the overseas
regulatory landscape for cross-border data and compliance strategies for data transfers systematically deepening employees’ understanding of the
core principles practical implementation and compliance measures related to data security.
28Environmental
Embarking on a Green Journey to Build a Low-Carbon
Logistics Ecosystem
Logistics as the “meridian system” supporting a modern economic
system serves as a critical link connecting production distribution
and consumption. Building a smart resilient green and synergetic
modern logistics system has become a strategic lever for achieving
sustainable industry development and facilitating the green and low-
carbon transition of the economy and society. SF actively responds to
China’s “Dual Carbon” strategy leveraging technological innovation
to unlock emission reduction potential and improve efficiency. We are
transforming our green and low-carbon management capabilities into
business competitiveness systematically advancing the green transition
across the entire logistics chain and building a sustainable business
model that addresses climate challenges. We are committed to
creating a future-oriented sustainable logistics ecosystem and leading
the industry toward a new stage of development characterized by
lowcarbon operations high efficiency and inclusivity.● Leading the Low-Carbon Transition ● Practicing Green Operations
● Developing Green Logistics ● Protecting the Ecological Environment
● Advancing Circular Economy ● Addressing Climate ChangeSF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Leading the Low-Carbon Transition
SF is steadfastly committed to sustainable development and continuously advances its climate initiatives. We systematically set science-based
carbon reduction targets and implementation pathways using our digital “Fenghe Sustainability Management Platform” to deploy five core In 2025 the Company achieved a total greenhouse
emission reduction pillars: green transportation green industrial parks green packaging green technology and circular supply chains. Through
this integrated approach we aim to lead the low-carbon transition of China’s logistics and supply chain industry. gas emissions reduction of 3146348
tons of carbon dioxide equivalent.Optimize our fleet mix and expand the green vehicle fleet. Use sustainable aviation fuel (SAF).Replace vehicles with higher axle count models to increase loading capacity. Increase the proportion of large cargo aircraft with low energy Reduced
Phase out vehicles with high fuel consumption and high emissions to reduce consumption and high energy efficiency.energy consumption and pollution. Apply fuel-saving technologies such as redispatch and route 515686
Green Pilot new energy vehicles (NEVs) including those powered by methanol straightening.Transportation tCO2e in carbon emissionsLNG CNG and hydrogen fuel. Continuously increase the proportion of NEVs in aviation bases.Accelerated the construction of photovoltaic (PV) projects in our industrial parks to increase the share of clean energy in our energy mix.Reduced
Enhanced the energy efficiency of lighting systems and deployed high-efficiency equipment such as smart electrical cabinets.Launched an intelligent energy monitoring and management system to enable granular energy management and conservation. 55208
Green Industrial tCO2e in carbon emissions
Parks
Reduced
Adopted a comprehensive sustainable packaging strategy focused on plastic reduction source reduction material standardization closed-loop recycling
and environmentally safe materials. 649514
Green Packaging tCO2e of carbon emissions
Digital Carbon Management: Standardized our carbon accounting and developed the industry’s first waybill-level carbon calculation model.Intelligent Route Planning: Optimized transportation routes using advanced big data algorithms Reduced
Smart Load Optimization Algorithms: Improved loading plans to reduce packaging material consumption. 1920194
Green Technology Digital Process Adoption: Fully adopted digital tools (e.g. electronic delivery receipts photo-based proof of delivery paperless reimbursement) to tCO2e of carbon emissions
reduce paper consumption.SF Forest: Planted over 10000 mu (approx.667 hectares) of carbon-neutral forests in Hebei and Sichuan. ReducedOther Initiatives (e.g. the “SF PPE Recycling-for-Points Program: Encouraged frontline staff to extend the service life of safety workwear through a point-based incentive system 5746 tCO2eForest” project PPE recycling- reducing resource consumption and fostering a circular economy.for-points programs etc.)
30
Green Aviation
Green Ground
TransportSF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Digital Carbon Management
SF continuously strengthens technological innovation has developed a standardized carbon management system and independently developed In 2025 to further strengthen the professionalism accuracy and
a supply chain digital carbon management system – the “Fenghe Sustainable Development Management Platform” (hereinafter referred to adaptability of carbon data management the Company carried
as the “Fenghe Platform”) – which features the industry’s first waybill level carbon emission calculation model. The Fenghe Platform and its out a comprehensive iteration and upgrade of the carbon data
accounting methodology have been verified against both the ISO 14083 international standard for logistics carbon accounting and the Global infrastructure of the Fenghe Platform. By enhancing three core
Logistics Emissions Council (GLEC) Framework 3.0. By linking multiple core SF business systems including those for order processing network capabilities we have established a more efficient flexible and
planning land transport aviation railway packaging and collection & delivery management it integrates end-to-end data from packaging standardized carbon management support system:
transportation transfer and last-mile delivery. This enables the accurate calculation of carbon emissions for each waybill achieving precise
accounting and dynamic monitoring of the logistics carbon footprint. Internally the Fenghe Platform supports the Group’s granular carbon
management. Externally it provides clients with carbon accounting tracking disclosure and certification services for scenarios including logistics
transportation site energy consumption and packaging material use aiding the industrial chain’s transition toward a zero-carbon future.Launched the “Fenghe Factor Library” which
integrates over 200 authoritative domestic and
international carbon emission factors. Based on
real transportation scenarios it generates high
precision and granular factors and supports
factor t raceabi l i ty and mul t i -d imensional
comparison.Enabled user-def ined carbon account ing
models offering the flexibil ity to adapt to
diverse industries and business scenarios to
meet a wide range of personalized carbon
accounting requirements.Introduced a custom reporting function that
can efficiently analyze billions of waybill data
points. This aids in carbon footprint tracking
and emission reduction target setting thereby
unlocking greater value from carbon data and
enhancing management efficiency.Relying on a standardized carbon management system refined
carbon accounting capabilities and deep experience in the logistics
sector SF serves multiple industries including new energy high-tech
apparel and footwear consumer goods and luxury goods. By the
end of 2025 SF had delivered customized green low-carbon supply
chain solutions to over 300 leading brand customers across sectors
providing multidimensional carbon analytics covering emissions
carbon intensity reduction impacts hotspots and breakdowns by
process product and flow. These empower value chain partners in
their low-carbon transition as the Company works with them toward a
The Fenghe Sustainable Development Management Platform Dashboard zero-carbon future.
31SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
SF Collaborates with an International Cosmetics Brand on Holistic Green Warehouse Transformation
A leading international cosmetics brand is committed to greening its end-to-end logistics chain. In 2025 building upon the industry benchmark – the “Single Inventory” logistics model – SF partnered with the brand
to drive comprehensive green upgrades across its warehouse operations. The collaboration spanned full-link carbon emission management green building certification renewable energy application and circularity
establishing a replicable model for green supply chain transformation in China’s cosmetics sector.Utilizing SF’s self-developed Fenghe Platform the Company enables precise accounting and management of the carbon footprint across Full-Chain
warehouse operations and distribution services. This covers metrics such as the proportion of green electricity in warehouse consumption Carbon
B2B and B2C distribution while delivering granular data on last-mile delivery emissions. Emission Management
The warehouse is designed to meet the LEED O+M (Operations and Maintenance) Gold certification6 standard with a
focus on optimizing energy and water efficiency alongside indoor air quality. This systematically validates green operational Green Building
management and establishes a foundation for low-carbon warehousing. Certification
The Company plans to deploy a distributed photovoltaic station on the warehouse roof aiming to supply a Renewable
substantial portion of its annual electricity from renewable sources. This will effectively reduce reliance on Energy
fossil fuels and cut absolute carbon emissions. Application
After comparing the Global Warming Potential (GWP) of various refrigerants the Company
facilitated a full transition from R410A to more environmentally friendly refrigerants with lower Green
GWP. This significantly mitigates the greenhouse impact of potential refrigerant leakage reducing Refrigerant
absolute emissions. Replacement
For carbon offsetting the model involves purchasing internationally recognized Green Exploring
Energy Certificates (GEC) to offset emissions from electricity use. For carbon inserting Pathways
it incorporates the use of Sustainable Aviation Fuel (SAF) in air transportation which can to Carbon
reduce Well-to-Wheel lifecycle carbon emissions by approximately 80%. Neutrality
6 LEED O+M (Operations and Maintenance) certification is a green building rating system developed by the U.S. Green Building Council (USGBC) specifically designed for existing buildings that have been in operation for more than one year.
32SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Developing Green Logistics
SF integrates green development into its corporate strategy
advancing key carbon reduction initiatives including low-carbon Number of NEVs of SF from 2020 to 2025 (Unit: vehicles)
transportation green park development and sustainable packaging
innovation. This has enabled the Company to establish a green
operational model that spans the entire logistics lifecycle creating 48584
a sustainable logistics service system that delivers both ecological 50000
and operational efficiency. This approach provides a replicable and
scalable paradigm for low-carbon transformation across the logistics
industry and its value chain. 40439
Green Ground Transport 40000
The Company focuses on three key drivers: optimizing the fleet mix
enhancing management efficiency and innovating transport models to 31750
systematically advance green road transportation. In fleet development
the Company continues to expand the deployment and adoption of new 30000 26189
energy vehicles (NEVs) driving the ongoing upgrade of its transport
equipment. In operational management the Company leverages digital
and intelligent tools to achieve granular control over vehicle energy 21278
consumption and dynamic optimization of routes thereby continuously
improving both operational efficiency and environmental performance. 20000 17053
In modal innovation the Company actively develops intermodal
transport capitalizing on its synergy across different modes to extend
comprehensive carbon reduction benefits from individual segments to the
entire logistics chain.
10000
Optimization of Transport Capacity Structure
SF steadily expands its green vehicle fleet through various means
including self-purchase and leasing to gradually replace traditional
fuel-powered vehicles and drive the green transition of its transport
capacity. In 2025 the Company added over 8000 NEVs to its 0
operations. These are deployed primarily in diverse scenarios such 2020 2021 2022 2023 2024 2025
as short-distance branch lines connections and last-mile pickup
and delivery within cities as well as on primary and secondary trunk
lines across provinces. As of the end of the reporting period SF had
cumulatively deployed over 48000 NEVs with services covering 307
cities.cumulatively deployed over
48000 NEVs
with services covering
307 cities
33SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
The Company has adopted a multi-technology pathway to decarbonize its freight transportation. Its strategy is informed by a systematic Vehicle Energy Consumption Management
assessment of technology trends maturity infrastructure readiness and the operational and economic feasibility in real-world scenarios.To build practical knowledge for a deep decarbonization of its fleet it has initiated pilot operations of vehicles powered by methanol SF advances its green operations and low-carbon transportation
liquefied natural gas (LNG) compressed natural gas (CNG) and hydrogen fuel on selected regional routes. In 2025 it deployed 8 initiatives through multiple integrated measures including fleet
methanol vehicles and 10 hydrogen fuel cell vehicles in locations including Xinjiang Chengdu Zhengzhou and Hangzhou. Performance energy management the replacement of conventional fuel vehicles
data from these pilots show that compared to traditional diesel trucks the methanol vehicles reduce carbon dioxide emissions by fuel consumption control and transportation route optimization.approximately 7% while the hydrogen fuel cell vehicles achieve zero tailpipe emissions throughout their operation underscoring their
environmental benefits. Vehicle Energy Replenishment Management
With the large-scale deployment of NEVs in logistics operations
To extend its green transition across the value chain the Company actively works with its carrier partners to increase the proportion of their mileage and usage frequency continue to rise leading to rapidly
low-carbon vehicles in their fleets. Supporting this effort it provides digital tools to enhance their sustainable logistics capabilities. A key growing demand for energy replenishment. To ensure broad coverage
initiative in 2025 was the launch of a digital energy management platform within its transportation system. This platform integrates charging and a stable supply the Company proactively integrates internal
infrastructure with dispatch operations offering drivers of pure-electric trucks a streamlined one-stop service for locating chargers and and external resources. Internally it fully activates its own charging
handling fee settlements via a dedicated electronic account for electricity fees. This solution is designed to lower operational barriers and infrastructure and centrally connects all facilities to a unified charging
accelerate the electrification of road freight. platform for management. Externally it deepens collaboration
with multiple third-party charging service providers to build a more
Shunxinhui “X-Chain Plan”: Accelerating the Electrification Transformation of Cold Chain Transportation extensive and responsive energy replenishment network.While consolidating this resource foundation the Company continues
to advance the integration and intelligent upgrading of its energy
Shunxinhui is steadfastly advancing the green transformation of its cold-chain logistics. In 2025 it officially launched the “X-Chain Plan” an replenishment system. In 2025 the Company comprehensively
ecosystem initiative designed to connect vehicle manufacturers energy service providers financial institutions and carriers. Its goal is to launched the platform-based aggregation of three energy types:
establish a collaborative platform for a new-energy cold-chain supply chain accelerating the shift to electric vehicles in this critical transport oil electricity and natural gas. All company-owned vehicles were
segment. integrated into the “Fengxingshunxiang Energy Platform” achieving
As the plan’s flagship project the first batch of electric refrigerated trucks was deployed in Shanghai and the broader East China region. This centralized control and end-to-end data connectivity for the entire
deployment marks a significant expansion in application scope from urban distribution to intercity transportation. These trucks are equipped energy replenishment process. Powered by a digitalized and
with high-capacity long-range batteries which reduce energy consumption by approximately 50% compared to traditional fuel-powered intelligent energy dispatch system the platform enables precise
models and are estimated to cut carbon emissions by around 3000 tons annually. Featuring a dual-evaporator system for independent multi- matching with discounted energy options and intelligent planning of
temperature zone control the trucks precisely meet the complex multipoint multi-temperature delivery requirements of the catering industry replenishment routes. This effectively enhances overall energy use
cold chain. Furthermore they support rapid energy replenishment in approximately 18 minutes significantly enhancing operational efficiency. efficiency and operational responsiveness.To ensure the long-term stable operation and efficient full-life-cycle management of this fleet Shunxinhui is working with its value chain
partners to build a comprehensive support system. This system encompasses charging infrastructure battery maintenance and data
integration. Through this collaborative ecosystem approach Shunxinhui is driving the ongoing electrification of cold-chain transportation.which reduce
energy consumption
by approximately
50% compared
to traditional fuel-
powered models
estimated to
cut carbon emissions
by around
3000 tons
annually
The delivery site of the first batch of NEVs under Shunxinhui “X-Chain Plan”
34SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Fuel Vehicle Fleet Renewal Vehicle Fuel Consumption Monitoring
Guided by its commitment to high-efficiency green operations To continuously enhance the fuel efficiency management of its conventional fleet and reduce overall fuel consumption the Company employs
and strict environmental standards SF has established a robust a dual strategy that integrates management enablement with concrete operational measures. At the management-system level the Company
mechanism for the l i fecycle assessment and optimization of has developed and implemented the Lump-sum Fuel Consumption Plan for Commercial Vehicles . The program establishes differentiated fuel
its fuel-powered fleet. The Company conducts comprehensive consumption control standards and targets tailored to specific business scenarios and is supported by a comprehensive incentive and penalty
evaluations based on key metrics such as vehicle age mileage framework thereby balancing the dual objectives of efficient fuel utilization and optimized transportation costs. By 2025 this fuel consumption
loading rate and exhaust emissions implementing a planned assessment mechanism had been rolled out incrementally in approximately 90% of the Company’s operational areas. Fuel consumption KPIs
phase-out of vehicles that fail to meet its requirements for operational
efficiency and environmental performance. To enhance fuel-use were incorporated into the performance and compensation evaluation systems for frontline driver team leaders and fleet managers effectively
efficiency and reduce the environmental impact of emissions SF raising awareness and strengthening the execution of fuel-saving initiatives at the operational level.undertakes multiple optimization initiatives in vehicle selection and
renewal. These include upgrading cargo-carrying capacity replacing To ensure the effective implementation of fuel-saving measures the Company leverages its intelligent fuel-consumption management platform
high-axle models with more efficient alternatives and optimizing to precisely manage vehicle fuel use across multiple dimensions – such as actual measured consumption and driving behavior – and promptly
fuel-inefficient vehicles through technical calibrations. In 2025 addresses anomalies of high fuel usage. For driver training and enablement it regularly conducts sessions on fuel conservation and emission
these efforts resulted in the replacement of over 1400 traditional reduction has launched specialized courses for its self-operated fleet and provides targeted training adapted to local conditions thereby
fuel-powered vehicles. comprehensively strengthening drivers’ fuel-saving awareness and skills.Increasing Cargo-Carrying Replacing High-Axle
Capacity Models Application of the Vehicle Development of a
Fuel Management System Driving Behavior Model
By replacing models with insufficient The Company is progressively
loading capacity SF enhances phasing out vehicles with a
transport volume per trip reduces higher number of axles in favor of
journey frequency and improves the models with fewer axles that offer By periodically tracking progress against fuel-consumption targets the Leveraging big-data analytics the Company has built a driving-behavior system provides a scientific basis for fuel-management decisions drives database covering key metrics such as idling duration and speeding frequency.overall efficiency of its transportation superior fuel economy and better the implementation of these targets and enhances the precision and This model analyzes the impact of driving behavior on fuel consumption to
resources. environmental performance effectiveness of fuel management. In 2025 the Company further iterated and identify opportunities for energy-saving optimization.thereby effectively reducing fuel optimized this system. By incorporating new business scenarios it conducted enhanced fuel-consumption monitoring and analysis for different vehicle
consumption. types strengthened control over key consumption points and extended
fuel-consumption management requirements to the vehicles of its transportation
capacity suppliers.Optimizing High- Early Phase-Out of
Fuel-Consumption Models Non-Compliant Vehicles Fuel-Consumption Data Management and
Analysis Tools Training Enablement
For vehicles with high fuel In strict adherence to the China VI
consumption SF implements emission standard the Company
technical measures such as proactively retires vehicles that fail
fuel-consumption calibration and to meet environmental requirements These tools identify and generate lists of high-fuel-consumption vehicles by The Company continuously refines its fuel-consumption control measures by
gear-ratio adjustment. Models that ahead of schedule ensuring full analyzing factors such as routes vehicle models axle counts and emission routinely sharing effective management practices – such as vehicle-renewal
remain inefficient after optimization compliance of its fleet. standards. This enables regional managers to strengthen oversight and provides optimization role adjustments and structured learning sessions – in internal robust support for fuel-consumption optimization efforts. regular meetings. Furthermore it regularly conducts fuel-management training
are phased out leading to a and enablement activities and provides specialized guidance to regions lagging
comprehensive improvement in the in achieving their fuel-management targets.fleet’s overall fuel-utilization efficiency.Transportation Routes Optimization
In the field of land transportation SF leverages intelligent algorithm models to plan optimal cargo routes based on key factors such as deliverytimeliness and distance. In 2025 the Company achieved a qualitative leap in this capability. Powered by the upgraded “Land Network IntelligentPlanning System” as its intelligent decision-making core which deeply integrates “expert agents + vertical-domain AI models” collaborative
technology the Company established a holistic intelligent and self-adaptive route-optimization framework. Beyond traditional decision-making
factors this system incorporates diversified metrics such as load factor carbon-emission targets and scenario-specific adaptability. Through a
full-process control mechanism of “pre-shipment predictive planning in-transit dynamic iteration and post-shipment closed-loop optimization”
the route-planning process has been elevated from merely “meeting demand” to proactively “anticipating demand” significantly enhancing the
scientific rigor and contextual appropriateness of transportation routes.Concurrently the Company continues to deepen the application of its intelligent “people-vehicle-cargo-site” matching engine. This enables
highly efficient and precise alignment between available capacity and shipping demands. The application has effectively increased vehicle load
factors on key regional routes significantly reduced the empty-load rate for cross-regional trips and further accelerated delivery times within
major economic corridors. By minimizing resource idleness this approach delivers a dual enhancement of transportation efficiency and customer
experience.
35SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Development of Multimodal Transport
As a modern freight model that seamlessly integrates two or more Concurrently the Company actively collaborates with upstream and downstream partners along the industrial chain to explore innovative
modes of transportation to provide end-to-end service multimodal intermodal solutions such as “truck-air” “air-rail” and “rail-rail” multimodal transport. By continuously optimizing transportation
transport has emerged as a core solution for optimizing transport combinations and resource allocation SF provides customers with faster more economical and greener logistics solutions collectively
structures reducing logistics costs and advancing the development contributing to a green and efficient modern logistics system.of a green low-carbon integrated transportation system. Its strengths
lie in strong supply chain coordination high resource efficiency and
significant overall benefits.SF has established a comprehensive logistics network spanning
multiple domains. In the air domain the Company manages the Exploring the “Rail-Air Intermodal” Logistics Model to Support Low-carbon and
largest cargo fleet in China and across Asia. In the land domain Efficient Regional Logistics Development
it operates a substantial vehicle fleet and a dense trunk-branch
line network. By further integrating resources such as high-speed
rail international block trains and maritime shipping routes the In 2025 SF deepened its partnership with Qingtie Business to pilot an innovative “rail-air intermodal” logistics model by utilizing
Company has built an integrated multimodal logistics system. In the off-peak capacity of Qingdao Metro Line 8. This model integrates several key functions – cross-sea subway connections last-
2025 its air cargo volume reached nearly 2.8 million metric tons rail mile unmanned delivery intermodal air transport and two-way logistics operations – ushering in a new chapter in the integrated
freight exceeded 2.87 million metric tons and sea freight shipment development of rail transit and logistics services.approached 1.15 million TEUs.By replacing certain road freight segments with a “subway + high-speed rail” combined transport solution the Company effectively
reduces the frequency of diesel truck usage achieving significant annual carbon emission reductions in the rail-based logistics
segment. Furthermore by leveraging existing metro infrastructure rather than building new dedicated logistics channels this
intensive development approach aligns with circular economy principles. It provides a replicable “Qingdao Model” for the green
2025 Air cargo volume reached transformation of the logistics industry demonstrating how integrated planning can lower both environmental impact and resource
2.8 consumption. million metric tons
Rail freight exceeded
2.87 million metric tons
Sea freight shipment
approached
1.15 million TEUs
“Rail-Air Intermodal” – A New Model for Rail-Based Logistics
36SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Green Aviation
SF Airlines is fully committed to the “dual control” of both total energy consumption and energy intensity Fleet Composition Optimization
steadily advancing its green aviation initiatives. It has established a robust energy management
organizational structure clearly defining responsibilities and coordination mechanisms across departments SF Airlines is driving the green transformation of its aviation operations by systematically optimizing the
to ensure effective implementation of energy management practices. Furthermore the Company composition of its owned all-cargo fleet building a modern low-energy high-efficiency and low-emission
continuously incorporates advanced management concepts and technical measures iteratively optimizing “green fleet”. The Company prioritizes the introduction of widebody all-cargo aircraft such as the 747 and
its energy management system. This enables a comprehensive drive toward energy conservation and 767. Compared to traditional narrowbody models these newly introduced large freighters demonstrate
emission reduction across air transport operations integrating energy-saving and carbon reduction higher carbon efficiency and lower fuel consumption per ton of payload under full-load conditions. As of the
measures throughout the entire flight process. end of 2025 SF’s owned all-cargo fleet had grown to 90 aircraft.SF Airlines’ Energy Management Structure
Oversees the work of the Energy Management
Energy Conservation and
Emissions Reduction Leading Working Group.Committee Reviews and evaluates the work plans and measures
proposed by the Energy Management Working Group. B747 Model B757 Model
Maximum payload: approximately 115t Maximum payload: approximately 30t
Fuselage length: 70.6m Fuselage length: 47.33m
Range at full payload: 11000km Range at full payload: 5000km
Conducts statistical analysis of energy data including
aviation fuel gasoline diesel gas water and
electricity.Formulates specific energy management work plans
Energy Management and measures.Working Group Implements these energy management work plans
and measures.Reports project progress regularly to the Energy
Conservation and Emissions Reduction Leading
Committee.B767 Model B737 Model
SF Airlines has continuously improved its energy management system and obtained dual certification under Maximum payload: approximately 56t Maximum payload: approximately 14t/16t/23.9t
the ISO 50001 standard and the RB/T 104-2013 guideline for transportation enterprises establishing a Fuselage length: 54.9m Fuselage length: 33.4m/36.45m/39.5m
robust and efficient energy management framework. To ensure the authenticity accuracy and reliability Range at full payload: 6000km Range at full payload: 3500km/4204km/3750km
of carbon emission data in air transport while meeting regulatory monitoring requirements SF Airlines has
established a routine third-party verification mechanism engaging independent verification bodies annually
to conduct rigorous assessments of its greenhouse gas emissions and issue authoritative verification
reports. In 2025 SF Airlines successfully complied with the annual carbon emission verification conducted
by the Civil Aviation Administration of China and the Ministry of Ecology and Environment and proactively
carried out energy conservation audits to identify energy-saving opportunities and drive continuous
improvement in energy efficiency.
37SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Aviation Fuel Management
Focused on fuel conservat ion in air t ransport SF Air l ines To further enhance the fuel efficiency of its cargo aircraft fleet the Company has embedded principles of operational excellence into its daily
continuously evolves its fuel efficiency practices. Through measures practices. This includes the full implementation of Electronic Flight Bags (EFB) to reduce onboard weight the adoption of BC/CC (Base Coat/
including optimized flight levels refined payload management Clear Coat) lightweight aircraft coatings and the enhancement of precision maintenance programs for aircraft equipment.dynamic a i rcraf t a l locat ion based on forecasted payloads
implementation of a redispatch7 strategy route straightening and
timely shutdown of auxiliary power units it works to minimize aviation
fuel consumption.International Routes Redispatch
Implementation of Electronic Adoption of BC/CC Lightweight Refined Maintenance of
Flight Bags (EFB) Aircraft Coatings Aircraft Equipment
On the premise of ensuring flight safety the Company
implements a redispatch strategy on international routes
to precisely reduce contingency fuel requirements thereby The Company has fully transitioned to The Company’s cargo aircraft use a new For core aircraft equipment such as
increasing payload capacity within safe and regulatory limits. Electronic Flight Bags (EFB) digitally BC/CC lightweight dual-layer coating engines the Company has established
In 2025 this fuel-saving technique saved approximately replacing all traditional paper-based system. Through optimized formulation regular maintenance practices including
1600 tons of aviation fuel and reduced greenhouse gas materials such as aeronautical charts design this system effectively reduces cleaning and dust removal to ensure
emissions by 4852 tCO e. flight manuals and operational guides. the dry-film density and thickness of the optimal operating condition.2 This enables flight crews to complete the fuselage coating while ensuring required
entire process of dispatch inspections performance in corrosion resistance
and other procedures using tablets. This weather resistance and aerodynamics.initiative significantly reduces onboard Compared to traditional coatings BC/
Route Straightening weight directly contributing to the CC coatings can significantly reduce improvement of fuel-use efficiency. the airframe’s weight. In addition
to improving fuel efficiency this also
By optimizing flight routes to reduce unnecessary detours reduces the amount of coating material
and turns flight distance is further shortened and fuel required offering both economic and
consumption lowered. In 2025 these measures saved environmental benefits.approximately 2530 tons of aviation fuel and reduced
greenhouse gas emissions by about 7672 tCO2e. Strengthening Fuel Monitoring
The Company employs digitalization to continuously enhance the granularity of its fuel management. Through ongoing optimization and upgrade
of its online fuel management system it has established comprehensive full-process dynamic monitoring and intelligent analysis of fuel
consumption for every flight thereby systematically improving fuel-use efficiency. This system is now fully integrated with dynamic data from key
fuel-saving initiatives such as redispatch on international routes and route straightening. It enables end-to-end tracking and real-time monitoring
of fuel consumption from takeoff to landing providing precise data support for the implementation of various fuel-saving strategies.Furthermore the system’s flight profile optimization function uses advanced algorithms to intelligently adjust flight trajectories and speed
parameters. This facilitates the integrated optimization of fuel consumption flight duration and emissions. By the end of 2025 this flight profile
optimization capability had been successfully deployed on 21 routes further enhancing the accuracy of fuel consumption forecasting.Enhancement of Fuel-Saving Incentive Programs
To encourage pilots and dispatchers to actively practice green flight operations while rigorously adhering to safety standards the Company has
enhanced its fuel-saving incentive program. This includes implementing a dedicated performance assessment system based on remaining fuel
upon landing. Leveraging data from the online fuel management system the Company has established a quantitative evaluation framework for
this metric. It conducts quarterly statistical analysis and ranking of fuel-saving performance granting special awards to teams and individuals with
outstanding results. Through this targeted evaluation and positive reinforcement mechanism the Company effectively encourages organization-
wide participation in fuel conservation and emission reduction driving tangible progress toward its green operational objectives.
7 On the premise of ensuring the safe and normal operation of flights the Company applies international fuel management policies rationally to reduce uplifted fuel and lower consumption through redispatch procedures.
38SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Electrification of Vehicles at the Aviation Base
To achieve the goal of “100% electrification of all ground service vehicles and equipment at the aviation base by 2030” the Company is
systematically phasing out diesel and gasoline-powered vehicles and equipment. This initiative includes the active introduction of new-energy
special-purpose vehicles such as electrically powered conveyor belt trucks lift platforms and tow tractors. These efforts are accelerating the
transition to a fully electrified ground fleet contributing to the development of a cleaner low-carbon transportation system for airport operations.Progress of vehicle equipment electrification at various aviation bases in 2025
Shenzhen Base Ezhou Base
The electrification rate The electrification rate
of vehicle equipment of vehicle equipment
reached 62% reached 53%
Strive to achieve
100%
electrification of
vehicle equipment
in aviation bases by
Hangzhou Base 2030 Beijing Base
The electrification rate The electrification rate
of vehicle equipment of vehicle equipment
reached 17% reached 34%
Aviation Pollution Prevention and Control
SF Airlines strictly enforces controls on pollutant emissions and noise continuously mitigating the environmental impact of its operations.Regarding pollutant management the Company has implemented standardized operating procedures for hazardous materials such as waste
engine oil generated during aircraft maintenance. These procedures specify comprehensive requirements for the segregated collection storage
transport and compliant disposal of waste streams including fuels hydraulic fluids and lubricants. Concurrently the Company advances emission
reduction in ground operations by promoting the use of Ground Power Units (GPU) over traditional fuel-burning Auxiliary Power Units (APU) and
optimizing aircraft taxiing routes. These measures reduce engine idling time and lower exhaust emissions at their source.In terms of noise abatement SF Airlines continually refines its noise mitigation framework. This involves continuously optimizing takeoff landing
and departure procedures employing operational techniques such as reduced engine thrust and Continuous Descent Approach (CDA) and
conducting regular noise monitoring and data analysis around airports. These combined efforts effectively lessen the impact of aircraft noise on
surrounding communities.
39SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Special Exploring Sustainable Aviation Fuel Application to Advance Industry-Wide Carbon Neutrality
Topic
Against the backdrop of global efforts to address climate change and promote the green transformation of the aviation industry SF proactively advances the application of Sustainable Aviation Fuel (“SAF”)8
independently developed a blockchain-based digital monitoring platform for SAF ensuring end-to-end traceability verifiability and immutability of data across the fuel lifecycle. This platform underpins SAF-
integrated green aviation services offered to customers. Concurrently SF is collaborating with partners to conduct joint research on the applicability and feasibility of SAF undertaking in-depth exploration of its use
cases and emission-reduction potential to foster new green service models within air logistics. In 2025 SF Airlines continued to expand its SAF-powered flight operations extending coverage to multiple routes in
the EU Hong Kong (China) and four domestic airports in mainland China with regular SAF adoption achieved on selected routes.In 2025 the Company actively contributes to the development of the SAF industry ecosystem and actively participates in multiple industry seminars and exchange events. Together with government authorities research
institutions and value chain partners it held in-depth discussions on key topics such as SAF policy pathways technology applications and industrial collaboration. Through comprehensive and multi-level industry
engagement the Company stays connected to the forefront of global low-carbon aviation development continues to build industry consensus and share practical experience and takes concrete actions to promote the
large-scale application of SAF and the green transformation of the aviation industry.
2025 March July August
In March 2025 SF formally entered into a master intent agreement for the In July 2025 SF participated in the launch of the Initiative on the In August 2025 the founding conference and first general meeting of
purchase of Sustainable Aviation Fuel (SAF) with Sinopec (Hong Kong) Development of Sustainable Aviat ion Fuel (SAF) co-init iated by the China Sustainable Aviation Fuel (SAF) Industry Alliance – the first
Aviation Fuel Co. Ltd. This collaboration laid the foundation for long- China Energy Engineering Group and multiple institutions including alliance in China to cover the entire SAF industry chain – was held
term procurement of SAF meeting international sustainability certification the International Air Transport Association (IATA). The Company also in Chengdu. As one of the first 57 member organizations SF Airlines
standards. This milestone marks the official launch of the Aviation participated in launching the first international specialized committee under completed the membership signing and officially became a member of
Carbon Neutrality Acceleration (ANA) initiative spearheaded by SF the Global Alliance for Sustainable Transport Innovation – the Sustainable the Alliance.achieving for the first time in China a closed loop for SAF from energy Aviation Fuel Committee – contributing to the improvement of SAF
supply to commercial application. In the same month the Company held industry standards the commercialization of related technologies and the
its annual industry salon engaging in in-depth exchanges with more than market-oriented growth of the sector.
50 globally renowned luxury brands on green aviation service models
highlighting SF’s foundational capabilities technological expertise and
the feasibility of its SAF solutions.December November October
In December 2025 SF was invited to attend in the Seminar on Sustainable In November 2025 SF participated as a logistics industry representative In October 2025 SF Airlines was invited to attend the 3rd IATA World
Development in Civil Aviation and Business Exchange on Sustainable Aviation in a roundtable discussion on China’s SAF development during the launch Sustainability Conference hosted by the International Air Transport
Fuel (SAF) co-organized by the Civil Aviation Flight University of China and event for the report Igniting the SAF Market: Policy Pathways for Scaling Association (IATA) and co-organized by Cathay Pacific where it explored
the North Asia Regional Office of the International Air Transport Association Up Sustainable Aviation Fuel in China hosted by the National School of with global industry partners pathways to achieving the aviation industry’s
(IATA). Together with nearly 30 industry organizations the Company explored Development at Peking University. The Company engaged in in-depth net-zero carbon emissions target by 2050.three pathways to break through bottlenecks in SAF development in support dialogue with sector experts on key topics including bottlenecks in the SAF
of the aviation industry’s 2050 net-zero goal: addressing industry challenges industry value chain collaboration and medium- to long-term trends.and improving production incentives strengthening linkages with carbon
markets and fostering value chain collaboration.
8 During the reporting period SF Airlines actively responded to the CAAC’s 14th Five-Year Plan for Green Development of Civil Aviation and the national “Dual Carbon” strategy by proactively advancing the commercial application of Sustainable
Aviation Fuel (SAF) steadily promoting SAF refueling and commercial-flight demonstration operations. In 2025 SAF consumption accounted for approximately 0.15% of SF Airlines’ total aviation fuel consumption.
40SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Green Industrial Park Green Operation of Industrial Parks
The Company continues to deepen the development of green SF integrates institutional standards with digital technologies across four key dimensions – smart energy consumption operational efficiency
and low-carbon industrial parks. Guided by green infrastructure water resource utilization and energy-saving equipment – to comprehensively enhance the environmental management capabilities of its
development and innovation in carbon-reduction technologies it industrial parks.integrates sustainability principles throughout the entire project
lifecycle – from planning and design to engineering construction
and smart operations. Through initiatives such as installing rooftop Smart Energy Operational Efficiency Rainwater Recycling Installation of
photovoltaics deploying smart water and electricity management Consumption Management Improvement Energy-Saving Equipment
systems and optimizing warehouse space layouts it has significantly
improved operational efficiency and energy conservation achieving a The Company has establ ished the To optimize park management SF The parks use permeable concrete The Company continues to promote
synergy of economic and ecological benefits. Industrial Park Energy Consumption has deployed an intelligent property t e c h n o l o g y t o b u i l d a r a i n w a t e r the installation of new energy charging Management System and piloted power management sys tem. The sys tem collection and recycling system and the piles to meet the green travel needs
In 2025 SF’s industrial parks in Shuangliu Chengdu (Sichuan); monitoring systems in parks such as includes newly developed core functions collected rainwater is used for greening of customers. As of the end of the
Jinjiang Quanzhou (Fujian); Changzhou (Jiangsu); and Tianjin were those in Jiaxing and Wujiang enabling such as personnel tracking intelligent irrigation improving water resource reporting period 39 industrial parks
certified as “First-Level Green Warehouses” by the China Storage real-time tracking of electricity usage monitoring and cloud-synchronized utilization efficiency from the source. have completed the construction of
and Distribution Association (CSDA) further expanding its portfolio and safety. Supported by smart meter- inspection recording which have been As of the end of the reporting period new-energy charging piles with a total
of green facilities. By the end of the reporting period the Company reading and power monitoring systems implemented across al l operational ra inwater recyc l ing sys tems have of more than 400 charging deviceshad cumulatively operated 10 industrial parks with “First-Level Green pa rk - l eve l ene rgy e f f i c i ency has parks to ensure efficient safe and been built and put into use in 18 of the installed and more than 800 chargingWarehouse” certification. Its industrial park in Guizhou Province improved significantly. By the end of the sustainable operations. Company’s industrial parks achieving spaces provided.was recognized as a “Green Logistics Park in Guizhou Province”. reporting period smart water-electricity remarkable water-saving results.Furthermore the Shunxinhui Hubei and Shunxinhui Tianjin Logistics systems and power monitoring systems
Centers have both obtained carbon-neutral certification. were operating in nine parks.Photovoltaic Projects in Industrial Parks
The Company continues to promote the construction of photovoltaic projects in industrial parks. It has formulated and implemented the
Management and Implementation System for Photovoltaic Projects in Industrial Parks established a full-life-cycle management specification
covering site selection construction and operation strictly controlled supplier qualifications investment and construction standards equipment
and material quality and operation and maintenance requirements and accelerated the increase in the proportion of renewable energy use.As of the end the Company had 44 PV projects in operation or under construction in its industrial parks with a total installed capacity of 179
of 2025 megawatts (MW). Among these 26 projects are already operational generating over 100000 megawatt-hours (MWh)
of clean energy annually which further supports the transformation and upgrading of the Company’s energy mix.First-Level Green First-Level Green
Warehouse Certification Warehouse Certification
(Jinjiang) (Changzhou)
First-Level Green First-Level Green
Warehouse Certification Warehouse Certification
(Chengdu) (Tianjin)
41SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Green Packaging
SF continues to deepen its focus on green packaging concentrating on cutting-edge packaging technologies while continuing to increase its R&D
investment in sustainable packaging materials. By enhancing material performance overcoming technical constraints and expanding application Source Plastic Reduction: Carbon Reduction
scenarios the Company has established an end-to-end solution centered on source reduction circularity environmentally safe materials and Practice of Lightweight Plastic Bags
standardization in packaging setting an industry benchmark for sustainable packaging practices.Reduced Packaging In 2025 the Company
advanced its green transition
The Company focuses on upstream strategies of packaging reduction and standardization promoting packaging technology innovation and in express packaging with a
material conservation through both management implementation and technological empowerment. focus on reducing plastic
use at source. This involved
a lightweight upgrade of
conventional packaging
The Company strictly implements the SF Packaging Operation Standard conducts special governance for plastic bags transitioning
At the overpackaging formulates a standardized packaging operation manual covering all categories of consignments the specification from 5
Management Level and promotes the principle of green packaging to run through the entire operation process. In 2025 the Company Lightweight Packaging Plastic Bagsmicrons to 4 microns.completed the iterative upgrade of the standard to provide more refined guidance for frontline operations.Through this material lightweighting initiative plastic consumption
was reduced from the outset.By the end of the reporting period this lightweight plastic bag
Leveraging its smart packaging service platform the Company has integrated data flows from courier terminals had been fully deployed in four specifications at scale with a
enabling real-time feedback and continuous iteration of packaging solutions. The platform provides intelligent cumulative distribution of 1.67 billion units. Compared to the
guidance to standardize packaging for different types of shipments reducing overpackaging at the source. In original specification the average weight per bag was reduced At the
Technological Level 2025 the platform was upgraded to streamline packaging options and introduced a collection of industry-specific
by approximately 3 grams. Leveraging the effect of large-scale
packaging solutions making them more aligned with sector needs. The platform also functions as a packaging application the cumulative reduction in plastic raw material
carbon accounting interface creating individual carbon accounts for customers participating in circular programs consumption for the full year of 2025 exceeded 4500 tons
and enabling visual management of the carbon footprint in the packaging use phase. corresponding to a carbon emission reduction of over 15400 tons
of CO2 equivalent.Centering around the “Fengjing Plan” the Company has conducted innovative R&D to reduce standardize and optimize materials such as plastic
film tape paper and seals for different scenarios. Through lightweight design and material structure optimization the Company has effectively
reduced the consumption of plastics and virgin paper. In 2025 through a series of packaging source reduction measures SF reduced virgin paper
use by approximately 46000 tons and plastic use by about 35000 tons achieving a total carbon emission reduction of approximately 130000
tons.
2025 46000 tons 35000 tons 130000 tons
Total annual reduction in Total annual reduction in Total annual greenhouse gas
virgin paper usage plastic usage emissions reductions achieved
through reduced packaging
42SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Reusable Packaging
SF deeply integrates diverse business scenarios to continuously develop modular reusable packaging containers suitable for multiple applications. The Company is progressively establishing a digital and intelligent
management system covering the entire lifecycle of these containers. By introducing RFID technology building intelligent allocation models and exploring centralized cleaning systems SF has comprehensively enhanced
internal management and circular operation efficiency. Concurrently the Company has refined the processes for takeback and end-of-life treatment to ensure the orderly recycling and regeneration of materials after their
useful life.Focusing on diverse customer needs and industry-specific characteristics the Company has developed and deployed a range of specialized reusable packaging containers. These include reusable woven bags
pharmaceutical temperature-controlled boxes Feng E reusable boxes and reusable pallet boxes. In 2025 the Company deployed a total of 20.55 million reusable packaging containers including 12.24 million newly added
units. It iteratively optimized over 15 product categories and the annual cumulative reuse count exceeded 1.6 billion times contributing to an estimated carbon emission reduction of approximately 520000 tons.SF innovatively applies reusable temperature-controlled Reusable Reusable
boxes in pharmaceutical transportation replacing Pallet Boxes Honeycomb Panel
traditional disposable foam boxes with eco-friendly
materials and advanced temperature control technology. Made from 100% reusable PP/PE materials Composed of 97% reusable PP material
Each use can reduce carbon emissions by over 5800 these boxes offer strong compression and these boards of fer outstanding impact
grams9. In 2025 the Company continued its iterative impact resistance. Their nail-free design resistance and can replace protective air
R&D developing seven industry-leading reusable reduces the risk of workplace injuries and cushions or honeycomb cardboard used
temperature-controlled box models and securing five Freight decreases reliance on traditional wooden for items like televisions. By the end of the
Pharmaceutical national patents. By the end of the reporting period frames crates and pallets for industrial reporting period over 130000 reusable Transportation freight and irregular items. By the end of the honeycomb boards had been deployed with
Temperature- over 53000 pharmaceutical temperature-controlled boxes had been deployed achieving more than 880000 Scenarios reporting period over 1.17 million reusable a cumulative total of more than 830000
controlled Box reuses. SF Pharmaceutical Temperature perimeter board boxes had been deployed reuses.with a cumulative total of more than 13
Cold Chain Controlled Box million reuses.The Cold Chain Feng E Reusable Boxes feature lightweight At transit hubs the Company has ful ly
construction compression resistance non-toxicity and promoted the use of reusable woven bags to
environmental friendliness offering comprehensive replace traditional single-use woven bags.advantages over traditional white foam boxes and providing By implementing a strategy that reuses
a safer more sustainable packaging solution for cold chain and reallocates existing bags in line with
logistics. In 2025 the Company completed an iterative network-wide demand SF achieves efficient
upgrade to the boxes which included an optimized exterior centralized coordination and maximizes the
design the addition of an opening instruction card and utilization efficiency of packaging resources.an integrated RFID chip at the top. These enhancements Currently each reusable woven bag is
have significantly improved operational convenience and used an average of 75 times. In 2025 an
intelligent management. In 2025 these boxes helped additional 7.11 million reusable woven bags
customers achieve a 48% substitution rate for white foam were deployed further expanding the scale
Feng E Reusable boxes. By the end of the reporting period approximately of their application.Boxes 1 million cold chain reusable boxes had been deployed
Reusable
across relevant scenarios accumulating over 34 million Woven Bags
reuses.In 2025 SF’s practice of utilizing cold chain reusable boxes
was included in the 50 Exemplary Cases of ’Integrated
Transportation’ published by the China Communications
and Transportation Association gaining authoritative
industry recognition.
9 In 2025 SF implemented an enhanced life-cycle assessment (LCA) approach providing a more complete picture of the carbon reduction impact across its product portfolio.
43SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
SF x Freshjoy: Cold Chain ‘Feng E Reusable Boxes’ Enhance To ensure the efficient implementation of the reusable packaging management system the Company
the Fresh Milk Cold Chain has established a special incentive mechanism for employees and carried out systematic training.Employee Incentives
To meet the higher requirements for timeliness freshness preservation and safety in the cold chain
transportation of low-temperature fresh milk SF partnered with Freshjoy a premium fresh milk brand
under Junlebao to deploy the SF Cold Chain Feng E Reusable Boxes at scale. Traditional white Rewards are given based on the effective Mult ip le rounds of act iv i t ies to col lect
foam boxes with their insufficient strength and high susceptibility to damage often led to temperature number of uses of freight reuseable packaging s u g g e s t i o n s o n p a c k a g i n g m a t e r i a l s
loss during transit and product deterioration resulting in increased product loss and a diminished mater ials to motivate employees to use have been carried out. Suggestions for
consumer experience. In contrast the Feng E Reusable Boxes are manufactured using food-grade reusable packaging materials actively. packaging optimization are collected from
EPP material and a physical foaming process. They offer distinct advantages such as being odorless all employees and honorary rewards and
heat-resistant and highly antibacterial which collectively ensure stable temperature control and point incentives are given to the winners of
preserve product quality throughout the entire logistics journey. excellent suggestions.Since adopting the SF Cold Chain Feng E Reusable Boxes the client has achieved significant
reductions in transportation damage and temperature deviation issues. In 2025 Freshjoy utilized Employee Training
these boxes over 15000 times daily on average leading to an estimated reduction of approximately
11.7 tons of carbon emissions per day. This initiative has successfully delivered a dual win: enhanced
product quality alongside tangible progress in green development. In 2025 the Company organized 36 training sessions on packaging solutions for relevant departments.Through systematic instruction hands-on exercises and case study analysis these sessions equipped
personnel with a comprehensive understanding of standardized packaging procedures design
principles and practical implementation cases thereby strengthening their professional competency in
deploying packaging solutions and addressing related challenges. Additionally 30 specialized training
sessions on reusable packaging were conducted for frontline staff throughout the year enabling them
to master the proper handling of reusable packaging materials and supporting the lean management of
such materials across all operational regions.SF Cold Chain ‘Feng E Reusable Boxes’
44SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Recycled PackagingTo achieve the goal of “achieving 100% conversion of standard plastic bags to recycled plastic bags by
2030” the Company has been continuously advancing recycled plastic packaging technology. By promoting
“Double-Easy” (Easy to Recycle and Recover) plastic bags it is driving the transformation of plastic
packaging from “single-use” to a “closed loop of recycling and recovery.” The “Double-Easy” plastic bags
use a single plastic material to enhance the back end recycling value and are blended with 30% post-
consumption recycled plastic (PCR) in the raw materials. On the premise of meeting national standard
mechanical properties we achieve plastic reduction and carbon emission reduction. It is estimated that a
single “Double-Easy” plastic bag can reduce the use of virgin plastic by 30% and reduce carbon emissions
by about 10 grams per use taking into account both performance and environmental benefits.In 2025 the Company accelerated the promotion and application of “Double-Easy”
plastic bags. Approximately 178 million of these bags in
three specifications were put into use in regions such as
Beijing and northern Zhejiang reducing the consumption of virgin plastic
by over 10000 tons and corresponding carbon emissions by approximately
1780 tons.
Biodegradable Packaging
The Company is actively advancing the research and development of biodegradable packaging materials.Through collaborations with external research institutes and universities pilot projects have been conducted
across multiple scenarios to verify the practicality and feasibility of various biodegradable materials. By
the end of 2025 the Company had distributed hundreds of millions of fully biodegradable “Feng Bags”
establishing a benchmark for the large-scale application of biodegradable green packaging.The Company continues to strengthen industry-academia-research collaboration. In 2025 it participated in
industry seminars on topics such as biobased and biodegradable material technologies and applications as
well as biodegradable bamboo film bags for mail and express packaging. Through these engagements the
Company stays abreast of cutting-edge technological trends promotes knowledge exchange and experience
sharing and accelerates both the technological iteration and commercial adoption of biodegradable
packaging materials.
45SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Green Packaging Standard Development
The Company continues to invest in fundamental research collaborating with multiple universities and institutions in industry-academia
partnerships. It has established an expert resource pool and conducted extensive studies in key areas such as functional packaging technologies
fresh produce preservation and temperature control green technologies packaging carbon footprint assessment and packaging standardization.These efforts address existing gaps within the industry.In 2025 the Company participated in the compilation and officially released six national and industry standards including
Quality Control Requirements for the Sale of Fruit and Vegetable Products (GB/T45624-2025) Construction and Operation
Specifications for Cold Chain Collection and Distribution Centers in Agricultural Product Origins (GH/T1485-2025) Quality
Standard Specifications for Urban and Rural Distribution Services (SB/T11251-2025) Storage and Refrigerated Transportation of
Formulation Cucumbers (GB/T18518-2025) Simple Controlled Atmosphere Cold Storage Technology for Garlic Sprouts (GB/T8867-2025)
and Technical Specifications for the Harvesting Storage and Transportation of Bamboo Shoots (NY/T4704-2025). These
standards clarify the quality control requirements at the origin of agricultural products and provide standardized support for
regulating the circulation of agricultural products and reducing logistics losses.The Company played a leading role in drafting the standards Requirements for Restricting Excessive Packaging of Express
Deliveries (GB45186-2024) and Basic Requirements for Express Packaging of Fresh Products (YZ/T0194-2024). Subsequently Standard
it was invited by entities including the Beijing Municipal Administration for Market Regulation and the Policy and Regulation Training
Department of the State Post Bureau to conduct training sessions on these standards.SF Packaging Laboratory and Testing Center
The SF Packaging Laboratory and Testing Center possess comprehensive testing capabilities covering 45 packagingPackaging categories over 140 testing standards and 400 test items. It has been accredited as one of the industry’s first “GreenTesting Packaging Technology R&D Centers in the Postal Sector” and holds certification from the International Safe Transit Association
(ISTA).In 2025 SF in collaboration with Zhejiang University successfully passed the annual milestone review for the national key
project Demonstration and Application of Cold Chain Logistics and E-commerce Distribution for High-Value Fresh Agricultural
Products under the 14th Five-Year Plan. The outcomes of this project are expected to further enhance the synergy between Packaging Research
cold chain logistics and e-commerce distribution for fresh agricultural products providing a replicable model for the industry’s
green and standardized development.
46SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Advancing Circular Economy
Leveraging its integrated resources SF collaborates with partners
across the value chain to establish a closed-loop packaging recovery
and recycling system. This initiative provides a practical blueprint Film blowing
for advancing the circular economy within the logistics industry. Raw Materials printing bag Last-mile
The Company is driving the full-cycle validation and implementation Supply making Transportation delivery
of a closed-loop system – spanning the establishment of industry
standards technological research and the actual recovery and GRPG Service Waste disposal
recycling of express packaging. By continuously refining plastic The Film Blowing Regeneration and Bag Double E Deployment outlets/stations Waste
recycling processes SF is committed to building a comprehensive Formula Manufacturing mark and Usage Collection Consumerslifecycle system encompassing “design production consumptioncollection recycling and high-value application” to minimize the Provide technical
environmental footprint of express packaging. support for
Community
formulation design Provide PE drop
of reusable material with
packaging materials traceable quality and origin Recycling cleaning Discarded plastic and pelletizing films
Recycling and
Pelletizing
Provide resource utilization
of the recycled materials Manufacturers of
Plastic Products
Express Easy-to-Recycle and Easy-to-Recover Packaging Recycling System
In collaboration with the Green Recycled Plastics Supply Chain Joint Working Group (GRPG) and upstream and downstream
partners across the value chain SF jointly developed and released the group standard Implementation Rules for the Evaluation
of Easy-to-Recycle and Easy-to-Recover Design of Plastic Packaging – Plastic Film Express Packaging Bags and Inflatable
Cushioning . This standard specifies the evaluation index system and assessment methods for the easy-to-recycle and easy-to-
regenerate design of plastic film express packaging bags.Standard
Establishment In 2025 SF participated in the drafting of the national standard General Rules for the Evaluation of Easy-to-Recycle and Easy-to-Recover Design of Plastic Products which has now entered the approval stage and is awaiting release. Through this progressive
practice of advancing from a group standard to a national standard the Company further advances the standardized and
systematic development of easy-to-recycle and easy-to-regenerate design for plastic packaging.SF has also worked with upstream and downstream partners to tackle technical challenges in express packaging successfully
developing “Double-Easy” (Easy to Recycle and Recover) plastic bags. These bags incorporate up to 30% post-consumer
recycled (PCR) resin while maintaining excellent mechanical properties comply with national standards for express bags and
Technological enable the value of single-material easy-to-recycle design.Innovation
47SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Practicing Green Operations
SF adheres to the concept of green development centered on
environmental friendliness and resource conservation as the core. Improving Environmental Management System
It deeply integrates the low-carbon concept into all aspects of its The Company strictly complies with all applicable environmental laws and regulations including the Environmental Protection Law of the People’s
operation continuously strengthens the environmental management Republic of China and the Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution and continuously
system scientifically allocates resources strengthens emission strengthens its Environmental Management System to ensure comprehensive environmental compliance in its business development. It has
control deepens employees’ awareness of environmental protection formulated and implemented the Regulations on the Identification and Evaluation of Environmental Aspects which systematically standardize
jointly builds a green office ecosystem and creates a resource- the environmental aspect identification process clarify scientific evaluation principles and enforce stringent controls throughout the lifecycle of
saving benchmark enterprise. significant environmental aspects identified in the Environmental Aspect Identification and Evaluation Form. Focusing on potential environmental
risks in business operations the Company conducts regular risk assessments develops and implements preventive measures and continuously
refines its emergency response mechanism for environmental incidents. This ensures the rapid and efficient handling of sudden environmental
events and enables comprehensive environmental risk prevention and control.The Company has established the SF Environmental Management Policy to ensure that environmental protection measures are proactively
embedded into daily operations reducing environmental impact and faithfully upholding its commitment to sustainable development and green
operations. During the reporting year no major environmental incidents occurred and the Company did not receive any significant administrative
penalties for environmental issues.SF’s Commitment in Environmental Protection
Strictly abide by all applicable environmental-related laws regulations and industry regulations in the places of operation such
as the Environmental Protection Law of the People’s Republic of China and the Pollution Prevention and Control Law of the
People’s Republic of China and clearly define the responsibilities of relevant business departments in the Company during the
implementation of environmental policies to ensure the effective implementation of the policies.Actively adopt diverse energy-saving and environmental protection measures for different business scenarios to minimize the
environmental impact of all operational activities and improve the Company’s environmental and energy performance.Be committed to setting and continuously optimizing specific goals and indicators in the fields of water resource management
waste disposal and energy utilization to reduce the negative impact on the environment and promote environmentally friendly
operations.Actively communicate and cooperate with partners customers and other stakeholders in the value chain in environmental
protection and be committed to enhancing stakeholders’ understanding and recognition of the Company’s environmental
management work.Actively organize environmental protection education and training to ensure that employees understand the specific impacts of
their daily work activities on the environment and enhance their environmental awareness and sense of responsibility.The above commitments shall be supervised by the Board Strategy Committee/Sustainable Development Leading Group to ensure their
implementation.The Company has established a comprehensive environmental management system and has actively advanced the development of an energy
management system. As of the end of the reporting period the coverage rate of ISO 14001 environmental management system certification in the
Company’s main business segments reached 100%. All segments have completed the establishment and operation of the system through core
operating entities and obtained certifications.
48SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Energy Utilization
Improving energy utilization efficiency and transitioning to clean
energy are not only the key paths to reducing environmental load but Type of Risk/Opportunity Time Range Potential Financial Impact Countermeasures
also the core driving force for the logistics industry to achieve green
and low-carbon development. Energy utilization has gradually evolved Develop and apply green technologies to enhance
from a traditionally overlooked operating cost to a key consideration quality efficiency and energy conservation across
factor with both risks and opportunities profoundly affecting the the entire supply chain. For details refer to the
Company’s business model daily operations cost control and long- Amid global efforts to address climate “Technology Application” section under Services.term strategy. change energy regulations are tightening and energy-efficiency standards are Dynamically monitor trends in domestic and
Short term continually rising. This may require the international energy management policies and
By integrating with its business characteristics the Company Policy Mid term Company to invest additional resources in regulations. A dedicated team regularly tracks policy
explores energy-saving potential in every operational link and Long term optimizing its energy mix and improving updates and industry standard developments to
continuously optimizes its energy management system. By adjusting utilization efficiency which could increase identify trends and enable proactive planning.the energy structure reducing fossil fuel consumption and exploring compliance and operational costs to some Conduct specialized training on energy conservation
clean energy applications the Company is advancing the green and extent. and consumption reduction and implement incentive
efficient transformation of energy. programs in key areas such as fuel and energy
Transformation savings to continuously raise employee engagement
Risks and accountability in energy conservation.Governance
Actively expand the application of clean energy
The Company strictly adheres to relevant laws and regulations such as solar and hydrogen accelerating the
including the Energy Law of the People’s Republic of China and the development of a secure efficient and scientifically
Energy Conservation Law of the People’s Republic of China while Fluctuations in the market prices of clean sound integrated energy supply system to reduce
continuously enhancing its energy management system. It deeply Short term energy (including Sustainable Aviation dependence on any single energy source.Fuel and green electricity) and fossil fuels
embeds energy utilization within its ESG governance to ensure Market Mid term (such as gasoline and diesel) may create Closely follow energy market trends and adopt a multi-
alignment with the Company’s sustainable development strategy. Long term pressure on cost control in transportation channel multi-source procurement strategy. Energy
and warehousing operations. suppliers are selected based on a comprehensive
The Board Strategy Committee serving as the decision-making evaluation of price competitiveness quality stability
body for sustainability oversight actively engages in the discussion supply reliability and sustainability to ensure continuity and cost-effectiveness of energy supply.and analysis of key topics such as improving energy efficiency and
advancing the clean energy transition. It identifies relevant risks and In line with operational realities and site conditions
opportunities in energy management and drives the formulation and steadily advance the construction and expansion
implementation of energy-related strategies and targets across the Against the backdrop of rapid growth in of distributed photovoltaic projects in industrialorganization. At the operational level key business units responsible industries such as new-energy vehicles parks promoting the green electricity model of “self-for energy management develop internal rules and procedures and solar photovoltaics demand for consumption with surplus fed into the grid.”Products Short term
tailored to their operational contexts in line with the Company’s and Mid term green low-carbon logistics continues Proactively deploy new energy technology
overall energy strategy and objectives. To ensure effective execution services Long term to rise. This presents significant applications systematically assess development
these units regularly report progress on energy management targets opportunities for the Company to expand trends in areas such as Sustainable Aviation Fuel and into new business areas and increase
to senior management enabling timely strategy adjustments and new energy vehicles (NEVs) actively explore their revenue scale.supporting the efficient delivery of energy management initiatives. use in aviation and land transportation operations and continuously optimize the Company’s low-carbon
transportation system.Strategy Opportunity
By continuously advancing
In line with the global trend of green development and energy technological innovation improving The Company continues to develop and implement
the energy-management system and its energy management system. Using digital tools it transition the Company based on its own business layout and
operational characteristics comprehensively identifies and assesses deepening lean operational practices the
achieves granular control and dynamic optimization
potential risks and opportunities related to energy utilization from Resource Short term Company can not only reduce day-to-day
of energy consumption unlocking deeper energy
saving potential. At the same time through a well-
multiple perspectives such as level of impact and time dimension Efficiency
Mid term operating costs but also uncover new
Long term value-creation opportunities through designed internal incentive mechanism it fully
through industry research and communication with stakeholders. It energy-structure optimization and improved mobilizes employee initiative and enthusiasm for
deeply analyzes the characteristics of energy consumption structure resource utilization. This lays a foundation energy conservation effectively raising overall energy utilization efficiency and translating green operations
and optimization paths to provide strong support for formulating a for enhancing long-term financial resilience into a lasting competitive advantage.scientific reasonable and development-oriented energy management and expanding green revenue streams.strategy.
49SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Impact Risk and Opportunity Management
The Company deeply embeds ESG risks including those associated To effectively respond to energy utilization risks and seize the opportunities of low-carbon transformation the Company takes energy conservation
with energy use into its enterprise-wide risk management framework. and consumption reduction as the core of green operations systematically promotes normalized energy-saving measures in daily office and
It has established a comprehensive end-to-end management business operation scenarios continuously optimizes the energy consumption structure and reduces resource consumption.mechanism covering the identification assessment control and
monitoring of energy-related risks. This forms a closed-loop riskmanagement process of “risk environment analysis → risk controlobjective setting and risk identification → risk assessment → risk Fleet Structure Optimization: The Company is actively advancing the large-scale deployment and operational strategy for new-energy vehiclesresponse → monitoring and improvement” ensuring that energy- steadily expanding its green fleet phasing out traditional fuel-powered transport units and promoting an orderly transition toward a greener
related risks are fully identified effectively managed and disclosed Clean transport structure.in accordance with standards. Energy
Adoption Green Industrial Park Development: Continuous investment and application in renewable energy are prioritized including systematic rollout of
rooftop photovoltaic power stations. The scale of clean energy usage was steadily expanded through multiple channels such as procurement
The Board Risk Management Committee serving as the ultimate of green electricity and renewable energy certificates. In 2025 the Company’s industrial parks generated over 100000 MWh of photovoltaic
oversight body for risk governance is responsible for identifying electricity. Parks in Chengdu Shuangliu Urumqi (Xinjiang) Zhongshan and Foshan have signed green power direct-purchase agreements with
preventing and monitoring ESG-related risks – including those new-energy electricity retailers consuming over 42000 MWh of green electricity across these sites during the year.tied to energy use – and for formulating corresponding response
strategies. The Risk Committee operating under the Board Risk
Management Committee reviews the risk management framework
policies procedures delegations of authority and major risk Site Lighting Optimization: For lighting in public areas energy consumption is reduced by installing smart motion sensors and upgrading to
prevention and mitigation measures which encompass energy- energy-efficient luminaires. By the end of the reporting period the Company had deployed over 117000 sets of customized high-efficiency
related risks. To effectively implement these measures the Company Energy- energy-saving lights across its national facilities during construction and operational maintenance. These lights achieve an energy-saving rate of drives continuous enhancements to the energy management systems Saving 31% contributing to cumulative electricity savings of over 13 million kWh.within all key business units based on actual operational conditions Equipment
ensuring that energy management activities are carried out in a Renovation Smart Power Distribution Deployment: Intelligent power distribution systems have been installed in transfer centers and service outlets. Through
structured and orderly manner. real-time electricity data collection and analysis power wastage during idle periods is identified. Combined with site-specific shift schedules automated timing controls supported by manual intervention mechanisms are implemented to reduce unnecessary consumption. In 2025 4254
smart power distribution units were deployed achieving annual electricity savings exceeding 17 million kWh.Monitor and analyze the changes in the internal
Risk Environmental and external environment brought about by energy
Analysis utilization efficiency energy transformation and
other related factors. Smart Metering for Office Energy Use: Smart energy meters are installed in office spaces to enable dynamic collection and real-time monitoring of
electricity consumption data. Data analytics help pinpoint inefficiencies and support the formulation of targeted energy optimization plans.Risk Control Objective In combination with the risk control targets set at Energy
the Company level identify and sort out the risk list Monitoring Vehicle Fuel Management System: Using an intelligent fuel consumption management platform vehicle fuel use is accurately monitored across Setting and Risk
Identification related to energy. and multiple dimensions such as actual consumption and driving behavior. Excessive fuel consumption is promptly addressed.Management
Aviation Fuel Digital Management System: An online fuel management system has been established to dynamically monitor and manage fuel
Based on the probability of the occurrence of consumption for each flight enhancing fuel-use efficiency.energy-related r isks and their impact on the
Risk Assessment Company’s goals prioritize the identified risks and
determine those that require close attention and
priority control.Office Energy-efficient computers printers and other office devices are widely deployed. Equipment quantities are optimized based on actual operational
The Board considers factors such as the risks and Equipment
Energy needs to reduce standby power consumption. A strict electricity-use policy requires employees to power off equipment when not in use for benefits brought about by energy transformation Conservation extended periods and to unplug chargers after devices are fully charged avoiding energy waste and the safety risks associated with overcharging.Risk Response brand reputation and social responsibility. Based on
risk analysis it will review and formulate effective
risk response plans.Targeted training sessions are conducted for departments involved in energy management through in-person workshops case studies and
Continuously track monitor and manage the Specialized experience sharing aimed at raising employee awareness of energy conservation. In 2025 the Company organized energy-saving workshops in
Supervision and handling of energy-related risks. In daily work Energy Conservation industrial parks in cities such as Changchun and Tianjin. These sessions covered practical energy conservation and emission reduction measures
Improvement con t inuous ly op t im ize energy management Training for park operations as well as specialized knowledge on efficient energy use strengthening participants’ professional understanding of energy capabilities by strengthening the use of clean management and enhancing both awareness and skills in energy conservation.energy and improving energy efficiency.
50SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Metrics and Targets
The Company consistently regards energy management as a critical driver for achieving its strategic sustainable development goals and a
key pathway to leading the green transition towards a low-carbon future. It is committed to continuously reducing energy consumption through
technological innovation actively expanding the application of renewable energy accelerating the phase-out of fossil fuels and systematically
optimizing its energy structure. Based on its operational realities the Company has established an indicator system centered on high-efficiency
energy use. It sets scientifically grounded energy-management targets across dimensions such as clean energy application and green
transportation conducts regular comprehensive assessments of energy utilization performance and ensures the efficient achievement of these
targets through a closed-loop management process of dynamic monitoring review and optimization and implementation of corrective measures.Metrics Progress in 2025 Short- and Mid-Term Future Plans / Goal Setting
By the end of 2025 the Company had operationalized 26
photovoltaic projects across its industrial parks with a total
installed capacity of approximately 111 megawatts (MW). In 2026 the Company will advance 18 ongoing industrial park
The annual clean energy generation exceeded 100000 photovoltaic projects. Upon completion the total number of
megawatt-hours (MWh) further driving the transformation and such projects will reach 44 with a combined installed capacity
Clean upgrading of the energy mix. Concurrently through ongoing of 179 MW laying a solid foundation for optimizing the energy
Energy optimization of its energy consumption structure the Company’s consumption structure.annual renewable electricity consumption exceeded 106000
MWh.To further advance the green and low-carbon transition of its
land transportation the Company has formulated a dedicated
The Company actively adjusts its transportation vehicle mix NEV deployment plan. For 2026 the plan includes deploying
continuously optimizes the selection and replacement of over 1900 NEVs in its trunk and branch-line transportation
Green traditional fuel vehicles and expands the NEV fleet. By the end network. This will comprise over 1000 LNG-powered vehicles
Ground of 2025 the Company had cumulatively deployed over 48000 50 methanol-powered vehicles (including 20 methanol-fuelled
Transport NEVs operating in 307 cities. extended-range heavy-duty trucks) and a pilot deployment of 90 hydrogen fuel cell vehicles. These measures will further
drive the evolution of the transport fleet toward cleaner and
lower-carbon alternatives.SF Airlines bases are actively pursuing vehicle electrification. By
the end of 2025 the vehicle electrification rates at key aviation SF Airlines aims to achieve a 100% electrification rate for all on-
Green bases were as follows: 62% at the Shenzhen base 53% at the
Aviation Ezhou base 34% at the Beijing base and 17% at the Hangzhou
site vehicle equipment at its aviation bases by 2030.base.
51SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Green Operation
Waste Management
SF pays attention to waste management during its operations.Based on business development and daily operations it takes waste
reduction at the source and enhancing the waste recycling capacity For general waste such as domestic waste discarded stationery and shredded paper after collection and
as the core goals of waste emission reduction. Through measures General Waste sorting it is promptly transported to the designated waste storage location and handed over to the sanitation
such as implementing waste classification and promoting resource department for treatment with detailed records kept of the disposal process.recycling it effectively reduces waste emissions. The Company
formulates and fully implements a waste classification system sets
clear classification signs in office areas and operational sites and
formulates clear treatment processes for different types of waste to
ensure that all kinds of waste are properly and compliantly disposed For recyclable waste such as paper products and old work uniforms these items are collected in a designated
of. In 2025 the Company repurposed more than 43 million cartons Recyclable Waste area. According to the actual situation of recyclables qualified recyclers are contacted promptly to come and
and disposed of approximately 772 tons of used work uniforms. recycle them maximizing resource utilization.In addition the Company conducts regular training programs on
waste management to raise employee awareness and practical skills
in waste segregation. The training covers key topics including waste For hazardous waste such as waste fluorescent tubes batteries and waste printer ribbons/toners the
classification and disposal procedures practical recycling methods Hazardous Waste Company collects them centrally and then hands them over to a professional third-party institution with
and operational guidelines for source reduction ensuring that all staff qualifications for unified recycling and treatment.consistently follow standardized waste-management practices.
52SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Noise and Exhaust Emissions Management Water Resource Management
The Company has made source noise reduction and exhaust The Company has established a water management system including the Measures for the Management of Water and Electricity in Propertyemissions compliance a key focus in minimizing its operational Sites and other water use regulations to standardize water consumption practices. Guided by the water conservation objective of “maximizingenvironmental footprint. It continually refines its mechanisms for water savings and continuously improving water-use efficiency” it strengthens employee awareness through regular maintenance of water-
identifying assessing and controlling noise and exhaust emissions using facilities and multi-faceted promotion of water-saving practices enabling scientific water control and efficient usage. All operational water
to ensure all discharges meet regulatory standards thereby reducing is sourced from municipal water supplies. The Company’s business does not involve large-scale water consumption or industrial wastewater
the impact of its activities on surrounding communities and the discharge nor does it include operations with high water-pollution risks.ecosystem. In 2025 the Company faced no major administrative
penalties or criminal liabilities related to pollutant emissions. Specific water-saving measures include:
In noise prevention and control the Company prioritizes the
use of high-performance acoustic insulation materials in the
construction and daily operation of office buildings and implements Equipment Inspection Greening Water Use Water-Saving Rainwater Recycling
noise-reduction upgrades for selected equipment. For industrial park and Maintenance Optimization Awareness Campaigns
siting and management it comprehensively considers factors such as
nearby residential density and topography and strategically installs Regularly conduct equipment Continuously improve the Rainwater collection systems Water -sav ing reminder
physical barriers like sound-absorbing walls to mitigate community inspections to promptly detect efficiency of greening water are installed in industrial signs are placed at water
noise along transmission paths. and repair water leakage use optimize and adjust the parks headquarters office usage points in office and
problems ensure that all greening irrigation methods buildings and other facilities operat ional areas and
Regarding exhaust emissions the Company strictly enforces a water-using equipment is in and actively promote water- with the collected rainwater awareness materials are
vehicle access policy to ensure all newly purchased vehicles comply good operating condition saving irrigation technology to for greening irrigation garage updated per iodical ly to
with the latest national emission standards. In addition it maintains and avoid unnecessary water replace flood irrigation. cleaning and road flushing. reinforce employees’ water
a regular annual inspection system and conducts ongoing exhaust resource losses such as conservation awareness and
emission monitoring for its operating fleet ensuring continued “leaks and drips”. encourage company-wide
compliance and effective control of air pollution. adoption of water-saving
practices.
53SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Protecting the Ecological Environment
Guided by its philosophy of harmonious coexistence with nature SF works to minimize the impact of its operations on natural ecosystems and wildlife habitats. Through systematic enhancements to green operations
active participation in ecological conservation initiatives and improved control over the environmental footprint of its activities the Company reduces potential effects on biodiversity and takes concrete steps to protect it
partnering with stakeholders to foster a balanced ecological landscape.Protecting Biodiversity
At its key operational sites the Company adopts multiple measures in its planning and operations to lessen potential impacts on biodiversity.These include scientific site selection and layout optimization strict control of operational noise promotion of forest planting and cultivation and
ecosystem restoration and protection integrating ecological conservation into everyday business practice.The Company recognizes the influence of its activities on ecosystems and biodiversity and actively advances related conservation efforts. It
references and applies tools such as the Biodiversity Impact Assessment (BIA) and the Biodiversity Risk Filter (BRF) developed by the World
Wide Fund for Nature (WWF) to identify and assess the direct and indirect links between its major industrial park locations and natural areas.Monitoring results from the BIA indicate that the Company’s primary domestic industrial parks maintain a sufficient buffer from nearby protected
natural reserves10 and any potential operational impacts on these areas remain within controllable and manageable limits.SF Forest
Since 2020 SF has been running the “SF Forest – Carbon Neutrality” initiative (hereafter “SF Forest”) as a key innovative practice in exploring
pathways to carbon neutrality. The project is supported by an online “SF Forest” application and the establishment of offline carbon-neutral
forests. It has helped establish nature reserves in Xizang and Sichuan while addressing climate change and protecting biodiversity. Through
community outreach public advocacy and diverse offline activities SF shares the “zero-carbon” vision with employees customers and the
public driving consensus and action to support society-wide green low-carbon ecological development.SF Carbon-Neutral Forest Project in Sêrtar County Sichuan Province
Offl ine Carbon-Neutral Forests: Scientif ical ly By the end of 2025 the SF Forest initiative had established over Online “SF Forest”: Digital Empowerment for Public
Designed Multi-Benefit Initiatives Participation
Through scientific planning and meticulous implementation the 10000 mu (about 667 hectares) of Leveraging digital innovation to broaden public involvement the
SF Forest project not only effectively reduces greenhouse gases carbon-neutral forests across Hebei and Sichuan Provinces Company has developed the “SF Forest” online application platform. but also promotes ecological conservation and restoration thereby This interactive system integrates carbon footprint calculation tree
improving forest ecosystems. In collaboration with governments cumulatively planting more than seedling adoption and nurturing and incentive-based tasks. Through
businesses and social organizations the Company has pioneered a 1 the “cloud tree-planting” feature users can participate remotely in green development model in climate change response and ecological ecological initiatives and track in real time the growth progress and protection. This model is characterized by mult i-stakeholder million trees including species such as Oriental arborvitae environmental benefits of their adopted trees. By the end of 2025
participation shared benefits multiple environmental and social (Platycladus orientalis) Chinese pine (Pinus tabuliformis) and the platform had attracted over 150000 users who collectively
outcomes and local empowerment. spruce (Picea spp.). These efforts contribute to climate change adopted more than 150000 seedlings. All adopted trees are planted
mitigation and local ecological restoration and enhancement. in designated field locations ensuring that online environmental
engagement translates into tangible offline ecological impact.
10 The scope of “natural reserves” referred to herein includes national parks nature reserves and natural parks as well as World Natural Heritage sites and Wetlands of International Importance (Ramsar Sites). The respective boundaries are
designated in accordance with the Guiding Opinions on Establishing a Protected Area System with National Parks as the Mainstay the Convention Concerning the Protection of the World Cultural and Natural Heritage and the Convention on
Wetlands of International Importance Especially as Waterfowl Habitat (Ramsar Convention) .
54SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Biodiversity Conservation Initiatives
SF focuses on protecting ecological functional zones and
endangered species advancing practical and innovative Integrated Pilot Project for Wildlife Conservation and
conservat ion act ions through sc ient i f i c surveys and Ecological Development in Southeastern Xizang
multi-stakeholder collaboration. The Company conducts
comprehensive scientific assessments to establish a clear
baseline of local ecological resources enabling focused The SF Public Welfare Foundation has engaged in in-depth collaboration with the Shanshui Conservation Center to implement an Integrated Pilot Project
protection of key ecological functional zones and rare or for Wildlife Conservation and Ecological Development in Mêdog County and
endangered species thereby maintaining ecosystem balance. Zayü County in southeastern Xizang. The project advances the synergy
In parallel SF maintains close cooperation with research between ecological protection and community development around three core
institutes and social organizations integrating multilateral pillars: species monitoring community-based conservation and public science education and awareness.high-quality resources to implement biodiversity conservation
projects in regions such as Sichuan Province and the Xizang In 2025 the project team conducted field surveys involving a range of activities:
Autonomous Region. These efforts represent an ongoing researching the design of nature education trails; holding discussions with the
exploration of new pathways and mechanisms for biodiversity local Forestry and Grassland Bureau on solutions to human-wildlife conflict and ranger training; visiting villages to refine protection measures; and inspecting
conservation. infrared camera deployment. Through technology enablement public science
education and multi-party collaboration the project continues to explore
sustainable pathways that harmonize ecological protection with community
development. These efforts have not only achieved more precise species
monitoring institutionalized community conservation and contextualized science
outreach but have also built a cross-institutional cross-regional collaborative
protection network. Field surveys for the Integrated Pilot Project for Wildlife Conservation and
Ecological Development in Southeastern Xizang
White-lipped Deer Conservation Public Welfare Project
in the Sêrtar Nianlong Nature Reserve Sichuan
Since its joint launch in 2024 by the SF Public Welfare Foundation and the Furthermore the SF Public Welfare Foundation actively collaborates with
China Green Carbon Foundation the White-lipped Deer Conservation Public partners and the local Forestry and Grassland Bureau holding in-depth
Welfare Project in the Sêrtar Nianlong Nature Reserve Sichuan has successfully exchanges on project progress and organizing joint field patrols. By learning to
completed its phase-one baseline survey. A total of six comprehensive surveys identify wildlife signs – such as tracks dens and scat – team members have
have been conducted within the reserve involving 546 participant-days. enhanced their understanding of species activity patterns strengthened frontline
patrolling and scientific monitoring capabilities and laid a foundation for the
In 2025 the project further enhanced its scientific monitoring system. Following project’s sustainable and long-term operation.a grid-based layout the project team deployed 101 monitoring points equipped
with 134 infrared cameras successfully retrieving data from 93 points.Simultaneously the team completed surveys of 345 habitat sample plots and
50 animal transects and conducted in-depth interviews with over 80 local
households building a comprehensive understanding of the regional ecological
baseline and community development status. Infrared camera monitoring has
enabled the research team to document 5 species of nationally first-class
protected wildlife – including the snow leopard (Panthera uncia) Chinese
mountain cat (Felis bieti) and white-lipped deer (Cervus albirostris) – and 12
species of nationally second-class protected wildlife such as the blue sheep
(Pseudois nayaur) Tibetan gazelle (Procapra picticaudata) and Chinese serow
(Capricornis milneedwardsii). This provides reliable data support and visual
evidence for assessing biodiversity status and conservation effectiveness.Infrared camera image of a snow leopard – a nationally first-class protected
animal – captured in the Sêrtar Nianlong Nature Reserve Sichuan
55SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Addressing Climate Change
Climate change has become a global issue crucial to the survival SF Sustainability Governance Structure
and the sustainable development of human civilization. As an active
participant in the green and low-carbon transition of the logistics
industry SF continuously monitors and assesses climate-related risks
and opportunities. The Company is firmly committed to supporting
the national “dual-carbon” strategy and the 1.5°C temperature goal The Board of Directors acts as the decision-making body for SF’s sustainable development and climate change response. It is
of the Paris Agreement . Refer to the framework of the Task Force responsible for formulating ESG and climate-related strategies
on Climate-related Financial Disclosures (TCFD) SF integrates The Board of Directors overseeing their implementation and establishing governance
climate-related matters into its corporate governance system frameworks to ensure operational departments address ESG risks
conducts in-depth identification assessment and scenario analysis and climate-related impacts. The Board’s Strategy Committee communicates ESG and climate objectives regularly reviews
of climate risks and opportunities continuously enhances climate risk emerging trends r isks and opportunit ies and keeps the
management strengthens adaptation and mitigation capabilities and Salary and Risk information updated. Furthermore SF integrates carbon reduction
steadily builds and enhances its climate resilience. Audit Strategy Nominatingassessment management targets into its corporate strategy links them to management committee Committee committee
committee committee performance evaluations and ensures the effective implementation
of ESG and climate governance.Governance
Supervision & guidance Periodic reporting
SF recognizes the profound impact of climate change on its Oversight of these responsibilities is led by the CEO with the
strategic direction and business operations and treats climate participation of the Chief Financial Officer (CFO) Chief Operating Officer (COO) Chief Marketing Officer (CMO) Chief Technology
governance as a core component of its Environmental Social and Officer (CTO) and Chief Human Resources Officer (CHO). This
Governance (ESG) framework. The Board Strategy Committee Sustainability Leadership Group executive team is tasked with setting and regularly reviewing ESG
oversees and manages sustainability matters including climate and climate-related goals ensuring that ESG and climate risks
change response. It incorporates climate risks and opportunities are fully considered and addressed in corporate decision-making investment planning and operational activities.into the Company’s strategic planning and formulates corresponding
management measures. The Committee meets at least annually Overall planning Daily reporting
to discuss climate-related risks and opportunities progress on
emission-reduction targets pathways for green transition and other As a specialized working body the Sustainable Development
climate-related topics. This ensures that climate governance is Working Group comprises representatives from the Office of the
aligned with the Company’s overall strategy promotes consistent Board of Directors functional departments related to sustainable Sustainable Development Working Group development BGs (Business Groups) and BUs (Business Units).at tent ion and effect ive implementat ion of cl imate issues in It is responsible for coordinating ESG and climate-related work
decision-making and resource allocation and strengthens the facilitating effective communication and implementation of tasks
Company’s resilience and foresight in addressing climate challenges. and reviewing climate-related risks and opportunities.Meanwhile to ensure that the Board and senior management Coordination in implementation &promotion Daily reporting
remain informed of the latest trends in climate-related risks and
opportunities the Company regularly enhances their climate-related In accordance with established management indicators and
competencies through measures such as circulating briefing materials mechanisms SF’s business and functional departments identify
and organizing participation in industry seminars. Business and Functional Departments ESG and climate risks conduct carbon emissions accounting implement climate risk management measures in business
operations and carry out energy conservation and emissions
To strengthen oversight of climate action implementation SF has reduct ion plans thereby strengthening ESG and cl imate
incorporated quantitative climate-related indicators – including governance.emission-reduction targets and progress in energy conservation –
into the performance evaluation system for senior management.Performance assessments are used to drive implementation of
measures and continuously raise the standard of climate governance.
56
Decision-making Daily
Supervision Management ImplementationSF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Strategy
The Company conducts a comprehensive assessment of climate-related risks and opportunities across short (0–2 years) medium (2–5 years) and long-
term (5–10 years) horizons and closely integrates corresponding risk-management actions with its strategic objectives and operational plans advancing
this in a coordinated manner. Given that climate-related risks and opportunities typically involve long time frames complex drivers and material uncertainty
the Company employs scenario analysis to systematically evaluate climate risks and their potential financial implications under different global warming
pathways such as low and high-emission scenarios. Scenario analysis provides a scientific foundation for developing forward-looking and adaptive
strategies to manage climate-related risks and opportunities.As a key component of its climate-related strategy the Company continues to refine its climate transition plan. Aligned with the criteria of the Science
Based Targets initiative (SBTi) it has established clear greenhouse gas emission reduction targets and received SBTi validation for its near-term long-
term and net-zero targets in April 2025. To deliver on its commitment to achieve net-zero emissions across its entire value chain by 2050 SF has
undertaken in-depth strategic analysis continually optimized its climate transition pathway and focused on five priority areas: green transportation green
parks green packaging green technology and circular supply chains. These efforts aim to reduce emissions from its own operations as well as across its
upstream and downstream value chain. At the same time the Company collaborates with value chain partners to advance toward a zero-carbon future. For
further details on the Company’s climate goals and roadmap please refer to the SF Group Climate Action White Paper.Physical Risks
Physical risks refer to the impacts of changing climatic conditions on the Company’s operations and development categorized mainly as acute risks (e.g.typhoons and floods) and chronic risks (e.g. rising average temperatures). The Company assesses climate risks based on two Shared Socioeconomic
Pathways (SSPs) outlined in the Intergovernmental Panel on Climate Change (IPCC) Sixth Assessment Report (AR6)11 – SSP1-2.6 (low-emission scenario)
and SSP5-8.5 (high-emission scenario) – and analyzes the potential operational and financial impacts of key physical risks.Scenario Selected
Type Scenario Scenario Source Scenario Application Description Scenario Prediction
12
A rapid transition from a fossil fuel-
The Sixth Assessment dependent economy to a renewable energy- Average temperature13: Rise of 1.9°C
Low- Report (AR6) of the driven economy with many countries Average sea level14: Rise of 0.2 meters
emission SSP1-2.6 Intergovernmental Panel beginning to implement strong climate Extreme climate events15: Frequency and
Scenario on Climate Change mitigation measures to limit the global intensity increase to a certain extent
(IPCC) warming amplitude in this century to no Total precipitation16: Increase of 1.3%more than 2.0°C above pre-industrial levels
(1850).
The Sixth Assessment Due to the continued use of fossil fuels Average temperature: Rise of 2.7°C
High- Report (AR6) of the as the primary energy source to drive Average sea level: Rise of 0.3 meters
emission SSP5-8.5 Intergovernmental Panel global economic growth greenhouse gas Extreme climate events: A significant
Scenario on Climate Change emissions are expected to remain high increase in frequency and intensity
(IPCC) through 2100 which may exacerbate the Total precipitation: Increase by 1.6%occurrence of extreme weather events.
11 The data from the IPCC models focus on climate science and its physical impacts enabling detailed projections of the physical impacts of climate change. These models are suitable for assessing the physical risks faced by the natural ecosystems
and infrastructure under climate change conditions.
12 Source: The Intergovernmental Panel on Climate Change (IPCC) Working Group I (WGI) Sixth Assessment Report and the CMIP6 climate models.
13 Refers to the projected change in China’s average temperature by 2050 relative to the baseline period 1850–1900.
14 Refers to the projected change in China’s average sea level by 2050 relative to the baseline period 1955–2014.
15 Refers to the projected change in the frequency and intensity of extreme climate events in China by 2050 relative to the baseline period 1850–1900.
16 Refers to the projected change in total precipitation in China by 2050 relative to the baseline period 1850–1900.
57SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Under the high-emission scenario the physical risks faced by the Company are most significant. Therefore a physical risk analysis is carried out focusing on this scenario:
Risk Type Risk Factor Impact Period Impact on Value Chain Impact Level Risk Type Risk Factor Impact Period Impact on Value Chain Impact Level
Acute risk Typhoon Short-term medium-term long-term Logistics and operations Medium to high Chronic risk Rising average temperature Medium- to long-term Operations Medium to high
Risk Analysis Risk Analysis
In logistics transfer operations SF operates numerous self-managed and partner outlets transfer stations logistics industrial parks and warehouses domestically Global warming will lead to a rise in average temperature which will have an adverse impact on SF’s operations.and internationally. Typhoons and other extreme weather events bring strong winds and heavy rainfall that can damage transfer-station roofs cause equipment
failures disrupt normal operations and increase maintenance and operating costs.In logistics transportation SF provides domestic and cross-border services via air road and rail. Severe typhoons can disrupt overall logistics flows leading to
cargo backlogs delayed deliveries increased fulfillment risks and revenue losses.Response Measures
During site planning and construction the Company fully assesses risks from typhoon-induced strong winds and heavy rainfall. Where compliant with local
building codes it avoids multi-slope road designs to reduce the formation of subsidence and gullies during intense precipitation.Comprehensive emergency response plans are established. Each operational site maintains sufficient stocks of emergency supplies – such as sandbags
generators drainage pumps and helmets – as required by internal protocols. Regular inspections of facility conditions and inventories of emergency supplies are
conducted.For air operations SF Airlines has a dedicated meteorological unit within its aviation operations command center. This unit issues real-time weather warnings and
forecasts accurately assesses the impact of adverse weather and promptly communicates meteorological information to all operational support departments
providing professional weather-related input for flight-decision adjustments.Risk Type Risk Factor Impact Period Impact on Value Chain Impact Level
Acute risk Flood Short-term medium-term long-term Logistics and operations Medium to high
Risk Analysis Long-term changes in global average temperature under
Global warming will lead to a rise in sea level and an increase in total precipitation thereby increasing the risk of flood disasters. the high emission scenario
Persistently rising temperatures reduce the efficiency of outdoor workers such as couriers elevate their health
risks and increase operational costs due to necessary heat allowances and workplace cooling measures.High-temperature conditions also strain cold-chain logistics systems including cold storage facilities and
refrigerated transport vehicles leading to higher refrigerant consumption and increased cooling operation costs.Furthermore summer heat and temperature fluctuations across the Company’s service areas can adversely
affect the storage and transportation conditions of consignments heightening the potential risk of revenue loss.In response the Company integrates authoritative external weather forecasts to continuously develop and
optimize its weather monitoring and early-warning system. High-temperature alerts are issued in advance
guiding staff to take proactive measures to mitigate risks from extreme heat. We fully implement occupational
health safeguards for high-temperature operations which include providing cooling devices implementing
improvements and managing shift schedules scientifically to prevent heat-related illnesses. Additionally by
analyzing national temperature and routing data we have built an environmental temperature model to define
specific climate zones. This enables the adoption of differentiated temperature-control materials and technologies
for each zone and the establishment of tailored packaging and refrigerant configuration standards to minimize
the impact of extreme temperatures on shipments.Long-term changes in the global sea level under the Long-term changes in the global total Response Measures
high-emission scenario precipitation under the high-emission scenario
The Company integrates authoritative external weather forecast data to continuously develop and refine its
meteorological monitoring system. It proactively establishes and disseminates high-temperature warning
In flood-prone areas the Company’s transfer stations warehouses and industrial parks face inundation risks which may damage stored goods. If logistics indicators to guide staff in taking preemptive measures thereby reducing risks associated with extreme heat.infrastructure – such as transport equipment pipeline systems and storage facilities – is damaged by floods asset losses can occur along with increased The Company fully implements health protection measures for high-temperature operations. This includes
maintenance costs. providing cooling devices such as portable fans carrying out ventilation and cooling renovations and arranging
Floods can also damage transportation infrastructure such as roads and bridges disrupting logistics routes compromising delivery timelines reducing transport work schedules and rest days based on scientific principles to effectively prevent potential health hazards posed
efficiency and leading to declines in operating revenue. by high temperatures to employees.By combining nationwide urban temperature and routing data the Company has built an environmental
Response Measures temperature analysis model to divide its network into specific climate zones. It adopts differentiated temperature-
For transfer stations warehouses and industrial parks located in low-lying areas the Company conducts advance comprehensive inspections and maintenance control materials and technologies for each zone and formulates corresponding standards for temperature-
of drainage systems. Drainage upgrades are implemented according to local flood-control standards to strengthen resilience against potential flood risks. controlled packaging and refrigerant configuration suited to the respective zones and shipment flow directions
Based on meteorological and hydrological information issued by national meteorological and water-resources authorities the Company’s Command and Safety to reduce the impact of extreme temperatures on consignments.Center disseminates emergency plans – such as the Flood Prevention Emergency Plan and the Response Plan for Extreme Weather – across the network via
email and other channels. Work is deployed in advance covering organizational support daily preventive measures (encompassing personnel parcels vehicle
operations site safety and material reserves) and emergency response ensuring comprehensive safety-risk management during flood seasons.
58SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Transition Risks
Transition risks refer to potential uncertainties that enterprises may face in the process of transitioning towards low-carbon and sustainable development due to shifts in multiple external factors such as policy direction
laws and regulations technological evolution and market structure adjustments. Based on analyses of the macro environment industry trends and internal research data and with reference to the International Energy
Agency (IEA)17 Stated Policies Scenario (STEP) and Net Zero Emissions by 2050 Scenario (NZE) SF has conducted focused assessments on policy and regulatory risks technological risks market risks and reputational
risks. This enables the identification of the impacts that energy transition and policy changes may have on the Company’s business model analysis of the Company’s transition risks and opportunities under different climate
scenarios and provides a scientific basis for formulating low-carbon transition strategies.Scenario Scenario Scenario Application 18
Type Scenario Selected Source Description Scenario Forecasting
This scenario is based on International climate policy: Some countries and regions have not established clear climate targets nor have they introduced specific
the policies that have been climate implementation plans.implemented and clearly
announced by governments Global energy demand: Total global energy demand in 2035 will be 4% higher than the 2024 level under the same scenario mainly
and industries around the world.High because the demand for coal and natural gas continues to increase.Emission Stated Policies Scenario
It projects the development
Scenario (STEP)
IEA trends and limitations related Global greenhouse gas emissions: They will reach 29629 megatons in 2050.to energy and climate. Global
greenhouse gas emissions The carbon price in China: It will reach $34 per ton in 2050.will continue to rise and the
temperature control target in
Paris Agreement Automobile industry pattern: Growth expectations for electric vehicles in developed economies have been lowered and uncertainties the cannot be remain in new electric vehicle sales and oil demand trends.achieved.International climate policy: The world’s major countries and regions have announced their carbon neutrality pathways including China’s
“Dual Carbon” goals and strictly implement them.This scenario aims to achieve
net zero energy-related carbon Global greenhouse gas emissions: Global energy-related emissions will decrease by about 50% compared with the 2024 levels in 2035
dioxide emissions by 2050 and are expected to achieve net zero emissions by 2050.Low through cl imate related
Emission Net Zero Scenario by IEA policy support large-scale The carbon price in China: It will reach $200 per ton in 2050.Scenario 2050 (NZE) deployment of renewable
energy technologies and energy Global energy demand: The deployment of various low-carbon technologies will be significantly accelerated and the terminal energy
efficiency improvements while consumption will undergo a rapid electrification transformation. By 2035 the average annual investment in the global electrification field
limiting global temperature rise will exceed $900 billion triple the current level.to below 1.5°C by 2100.Automobile industry pattern: The electrification of the automotive sector will be significantly accelerated and oil consumption will also be
more significantly impacted.
17 The IEA models focus on energy systems and the impact of policy changes on carbon emissions reflecting changes in energy demand supply and carbon emissions under different policy and technology pathways and are suitable for assessing
transition risks associated with energy transition and policy changes.
18 Source: IEA World Energy Outlook 2025
59SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
In the low emission scenario due to factors such as stricter policy supervision and faster technological innovation the impact of transformation risks on the Company is particularly significant. The Company focuses on this
scenario dimension and systematically conducted transformation risk analysis.Risk Type Risk Factor Impact Period Impact on Value Chain Impact Level
Policy and regulatory risks Pressure from greenhouse gas emission reduction policies Short-term medium-term long-term Logistics operations and downstream sales Medium to high
Risk Analysis
Since China announced its “Dual Carbon” goals the government has issued a series of policy documents – including the 14th Five-Year Plan for Modern Logistics Development the Outline for the Development of the Green
Aviation Manufacturing Industry (2023–2035) and the Law of the People’s Republic of China on Promoting Circular Economy – across energy transportation and logistics sectors to advance the green and low-carbon transition
of the economy. These macro-policy shifts could impact SF’s core businesses such as express delivery and warehousing challenge existing operational models and increase expenditures in environmental protection energy
conservation and emission reduction.In the area of international compliance the EU Emissions Trading System (EU ETS) has incorporated the aviation sector using market-based mechanisms to drive down carbon emissions. As SF Airlines continues to expand its
fleet and international route network it may become subject to this system in the future introducing additional operating cost pressures.Response Measures
To address these developments SF has established a dedicated policy research team to analyze national and local policies monitor regulatory trends domestically and internationally and incorporate these insights into its
risk-assessment framework. The Company also develops strategic plans proactively in response to internal and external changes.SF actively organizes internal and external training and participates in climate-related capacity-building programs to strengthen its professional expertise in climate management. This year the Group and its subsidiaries took part
in such activities hosted by authoritative third-party institutions continuously absorbing advanced industry practices and raising their climate-management proficiency.For international route operations SF continuously monitors flight volumes on EU routes and tracks the latest policy developments under the EU ETS. It has set up a dedicated task force for EU route carbon emissions which
has developed and refined the Working Guidelines for Carbon Emissions on EU Routes . This systematic effort builds carbon-management capabilities integrates resources trains specialized teams and deploys risk-mitigation
measures in advance.Annually SF engages an independent third-party professional organization to conduct carbon emission verification ensuring a comprehensive understanding of its carbon footprint. Concurrently the Company implements refined
energy-saving and carbon-reduction management to promote the scientific and standardized execution of emission-reduction initiatives.Risk Type Risk Factor Impact Period Impact on Value Chain Impact Level
Technological risks R&D and investment in low-carbon transformation technologies Short-term medium-term long-term Logistics and operations Medium to high
Risk Analysis
Driven by both policy direction and shifts in the market environment the logistics and transportation sector continues to elevate its focus on the research development and application of new energy and carbon-reduction
technologies. SF is steadily deploying new-energy vehicles in its road transportation network while expanding its freighter fleet and advancing the operation of Sustainable Aviation Fuel (SAF) routes in air transport. The research
development and large-scale deployment of low carbon technologies demand substantial capital and time investments which may strain the Company’s cash flow in the near term and increase operating costs.Response Measures
The Company actively engages in domestic and international forums on the application of Sustainable Aviation Fuel (SAF) closely monitoring its market developments and commercialization pathways. Through strengthened
industry-academia-research collaboration and sector-wide coordination the Company works with partners to advance low carbon technology development share technological achievements and mitigate the financial impact of
unilateral investment.For its ground fleet the Company conducts pilot projects for LNG CNG methanol and hydrogen-fueled vehicles in selected regions or corridors based on technological readiness and refueling infrastructure. This phased
approach helps manage the pace of upfront capital expenditure avoiding large-scale inefficient investments and reducing financial risk.
60SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Risk Type Risk Factor Impact Period Impact on Value Chain Impact Level
Market risk Energy price fluctuations Short-term medium-term Logistics and operations Medium to high
Risk Analysis
Due to the intertwined influence of factors such as the macroeconomic trends frequent geopolitical conflicts and uneven pace of clean energy transformation in the global energy market energy prices continue to fluctuate which
may increase fuel procurement costs for the Company’s aviation and land transportation operations thereby raising transportation costs.Response Measures
The Company uses intelligent algorithms to plan optimal transportation routes enhancing efficiency to reduce fuel consumption and per-unit transport costs. It is also actively developing multimodal transport optimizing the modal
mix and resource allocation to lower overall costs and improve energy efficiency across its transportation network.In daily office and operational environments the Company actively implements a range of ongoing energy conservation measures. These include retrofitting energy-efficient equipment deploying smart devices establishing
energy-use protocols and promoting energy-saving awareness among all staff. These efforts continuously improve the energy consumption structure and reduce overall energy costs.Risk Type Risk Factor Impact Period Impact on Value Chain Impact Level
Reputation risk Stakeholder concerns Short-term medium-term long-term Logistics operations and downstream sales Medium to high
Risk Analysis
The Company has publicly committed to science-based greenhouse gas emission reduction targets and aims to achieve net-zero emissions across its entire value chain by 2050 which has drawn attracted and ratings from leading
ESG rating agencies. Should the Company’s progress in its green and low-carbon transition lag or if it fails to meet its public commitments on schedule its brand reputation could be impaired eroding trust among stakeholders –
including the public customers and investors – and potentially pressuring business performance and market valuation.Response Measures
The Company has established a cross-functional specialized team to consistently monitor and assess internal and external sentiment strengthen its public response and crisis-management mechanisms conduct advanced risk
assessments and develop targeted mitigation measures.The Company regularly issues sustainability reports to disclose its strategic objectives implementation progress and phased outcomes in low-carbon transition. It actively engages with stakeholders – such as customers
investors and regulators – to address their concerns through two-way communication thereby building confidence in its green strategy and long-term value.
61SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Climate Opportunities
In the process of low carbon economic transformation SF turns challenges into development opportunities through forward-looking climate adaptation measures. The Company actively explores new opportunities brought
about by energy structure adjustment market demand evolution and technological innovation develops green products and services enhances supply chain resilience promotes business model innovation and injects new
impetus into sustainable development.Opportunity Type Opportunity Factor Impact Period Impact on Value Chain Impact Level
Product and service opportunities Development and/or expansion of low-emission products and services Short-term medium-term long-term Operations and downstream sales Medium to high
Opportunity Analysis
In recent years China has issued policies including the 14th Five-Year Plan for Circular Economy Development and the Guiding Opinions on Accelerating the Construction of a Waste Material Recycling System explicitly
advocating the widespread adoption of circular production models. These measures provide substantial policy and resource backing for industries to establish circular economic systems. By leveraging this policy guidance to
optimize its resource recycling energy conservation and emission reduction framework the Company can effectively reduce long-term operational costs and expand revenue opportunities in its green business segments.Amid rising focus on climate issues demand from downstream customers and consumers is rapidly shifting toward green and low-carbon services with a marked increase in need for sustainable value chain solutions. By
continuously enhancing its green service capabilities the Company can strengthen customer loyalty and market share improve its bargaining power and risk resilience foster low-carbon collaboration across the industrial chain
and mitigate potential compliance and reputational risks.Response Measures
In alignment with the circular economic trend the Company is building a comprehensive circular ecosystem for express packaging. Through collaboration with value chain partners it innovates green low-carbon recycling
models for plastics and plays an active role in developing the “Double-Easy” (Easy to Recycle and Recover) green packaging standards for the express industry. These regional and industrial collaborations drive the green
circular development of logistics packaging.Building on its proprietary “Fenghe Platform” carbon emission calculation model the Company provides customers with precise measurements of greenhouse gas emissions in the transport segment. This enhances the
transparency of carbon data and enables the Company to offer tailored green low-carbon logistics solutions thereby propelling the green transformation of the entire supply chain.Additionally the Company is actively expanding the application of sustainable fuels – including Sustainable Aviation Fuel (SAF) and sustainable marine fuels – to provide downstream customers with cleaner alternatives to
conventional fossil fuels. This meets their growing demand for low-carbon transport and further strengthens customer loyalty.Opportunity Type Opportunity Factor Impact Period Impact on Value Chain Impact Level
Resource efficiency Adopt a more effective transportation mode Short-term medium-term long-term Logistics and operations Medium to high
Opportunity Analysis
With the rise of green logistics multimodal transport has become a key means for achieving low-carbon transition and cost reduction. National policy documents such as the Work Plan for Optimizing and Adjusting the Transport
Structure in the Development of Multimodal Transport (2021–2025) are driving the integrated development of road rail waterway and air transport which can support the Company in lowering logistics and energy costs while
enhancing its competitiveness and profitability.Response Measures
The Company leverages its resources across aviation land transport shipping and express hubs and actively collaborates with upstream and downstream partners in the value chain. The Company is proactively exploring
innovative multimodal solutions such as truck-air intermodal air-rail intermodal and rail-rail intermodal transport. By integrating the strengths of different transport modes and dynamically optimizing route combinations and resource
allocation SF improves transport efficiency while effectively reducing energy consumption and overall logistics costs.
62SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Impact Risk and Opportunity Management
SF deeply integrates climate change risks into the enterprise risk
management framework to ensure that climate-related risks are
effectively identified scientifically managed and regularly disclosed. SF continuously monitors and analyzes the internal and external environmental changes arising from climate-related
The Company regularly organizes discussions and analyses on risks with assessments covering external policy pressures market transition trends corporate risk tolerance and
climate-related issues continuously monitors and follows up on Risk business operation models. If environmental changes have significant impact on risk management strategies or
the progress of climate risk management continuously optimizes Environmental measures SF’s risk management and control department will make timely adjustments to the risk control strategy
its risk control mechanism and improves professional management Analysis planning.capabilities in daily operations enhancing the Company’s overall
capacity to respond to climate risks.In combination with the risk control targets set at the Company level SF conducts research and analysis of internal
and external factors that may impact the achievement of these targets. This comprehensive evaluation encompasses
Risk Control internal governance structures external economic conditions natural environmental factors and relevant legal/
Objective regulatory frameworks through which the Company identifies and assesses climate change-related risks to formulate a
Setting and Risk structured risk inventory.Identification
The Company adopts a combined quantitative and qualitative methodology for climate risk analysis and assessment.Based on the likelihood of risk occurrence and the degree of impact on corporate objectives identified risks are
prioritized to determine key focus areas and preferential control measures. This risk prioritization provides scientific
Risk
Assessment reference for developing and refining the Company’s strategic initiatives.Taking into account risk causation and tolerance levels the Company evaluates risk-reward tradeoffs while
incorporating factors such as brand reputation and social responsibility. Based on comprehensive risk analysis findings
the Board of Directors will deliberate and determine effective risk mitigation strategies to safeguard the Company’s
sustainable growth and operational stability.Risk Response
The Company maintains ongoing oversight and follow-up on the implementation of climate-related risk mitigation
Supervision measures while continuously refining risk management mechanisms and capabilities through routine operations.and
Improvement
63SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Metrics and Targets
As the largest integrated logistics service provider in China and
Asia and the fourth largest globally SF consistently upholds a Goal19
philosophy of sustainable and sound development. It fully recognizes
the importance of participating in global climate action actively
responds to worldwide decarbonization initiatives and steadfastly
implements China’s “Dual Carbon” strategy to the advancement of Near-term targets approved by SBTi Net-zero targets approved by SBTi
the long-term goals of the Paris Agreement through its efforts in the
logistics sector. In November 2023 SF formally signed and submitted Net-zero greenhouse gas emissions
its science-based target application to the Science Based Targets across the value chain
initiative (SBTi) and its targets were officially validated in April
2025 demonstrating SF’s commitment to achieving science-based
greenhouse gas emission reductions and its ambition to reach net- 42% Greenhouse Gas Long-term targets approved by SBTizero emissions across the entire value chain by 2050. Scope 1 and Scope 2
Greenhouse Gas
To drive effective implementation of its climate strategy the Board 90% Scope 1 and Scope 2
Strategy Committee conducts an annual review of progress on 60% of SF’s suppliers by Greenhouse Gas Scope 3
climate-related targets and metrics. Meanwhile SF has established 25%emissions covering upstream (from purchased goods and
a systematic and digitalized carbon management system. It has transportation and distribution services capital goods 90% Greenhouse Gas
developed and continues to optimize a cross-departmental carbon will have science-based targets and fuel and energy- Scope 1 and Scope 2
reduction collaboration mechanism which institutionalizes regular related activities)
communication coordination and data reporting procedures and
clearly defines specific initiatives and progress-tracking requirements
for all relevant departments in their emission reduction efforts.Building on this foundation SF plans to further integrate carbon 2023 (Base year)
management objectives into its performance evaluation system. 2029 2030 2050
By continuously enhancing its capacity to monitor and account for
carbon emission data and applying a closed-loop management
mechanism SF aims to effectively drive the achievement of its Progress in 2025
climate-related goals.Indicator Unit 2025 Absolute Scope 1 and 2 greenhouse gas emissions increased by 9.5% from the 2023 base year.Absolute Scope 3 greenhouse gas emissions (from purchased goods and services capital goods and fuel and
Total Scope 1 energy-related activities) decreased by 6.6% from the 2023 base year.greenhouse gas tCO2e 3430954.0
emissions Conducted a specialized survey on carbon emissions among core suppliers systematically assessing their
greenhouse gas emission reduction target setting and progress toward Science Based Targets initiative (SBTi)
Total Scope 2 validation. This effort provides a data foundation for building a climate-friendly supply chain.greenhouse gas
emissions (location- tCO2e 1453283.9
based)
Total Scope 3
greenhouse gas tCO2e 8626404.6
emissions
19 “The target boundary includes land-related emissions and removals from bioenergy feedstocks”. The target covers seven greenhouse gases: carbon dioxide (CO2) methane (CH4) nitrous oxide (N2O) hydrofluorocarbons (HFCs) perfluorocarbons
(PFCs) sulfur hexafluoride (SF6) and nitrogen trifluoride (NF3).
64Social
Advancing with Responsibility to Co-create a
Brighter Future
SF is dedicated to cultivating a sustainable logistics ecosystem anchored in
responsibility and powered by collaboration. For employees SF adheres to
the principle of “love-oriented” fully protects employees’ legitimate rights
and interests provides a broad platform for growth and development
implements employee care measures and strives to create a warm and
harmonious workplace. For partners SF deepens strategic collaboration
and linkage. By opening up technology platforms sharing green solutions
and jointly establishing low-carbon standards SF empowers upstream and
downstream partners to improve operational efficiency and sustainability
and work together to build a resilient transparent and green industrial chain
and supply chain. For the general public SF actively transforms its network
advantages into public value and continuously invests in key areas such
as rural revitalization emergency logistics educational public welfare and
medical assistance so that the Company’s development achievements can
benefit society more widely achieve the integrated and mutually beneficial
development of economic and social values. Bound by responsibility and
defined by action SF is weaving a network that combines speed with
warmth – our enduring pledge to a better society.● Construction of Talented Team ● Building a Responsible Supply Chain
● Protecting Employee Rights and Interests ● Contributing to Social Well-being
● Guarding the Safety LineSF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Construction of Talented Team
SF always regards talents as the core driving force for enterprise development attaches great importance to the construction of talent teams and is committed to building a professional and high-quality talent echelon
through scientific talent recruitment training and incentive mechanisms. It provides all-round support for employees’ growth and development builds a broad platform for employees to realize their personal values helps
employees and the Company grow together and promotes the long-term and stable development of the Company.Talent Recruitment
SF strictly complies with laws and regulations such as the Labor Law of the People’s Republic of China and In 2025 the Company focused on promoting industry solution projects and international talent recruitment
the Labor Contract Law of the People’s Republic of China establishes the SF Recruitment Management strengthening the recruitment and reserve of key talents. For industry transformation and international
System to standardize the entire recruitment process management strictly adheres to the principles of business layout SF specially recruited professionals in specific fields. This year the Company won multiple
fairness impartiality and openness in recruitment and ensures the standardization and transparency of the employer brand awards including:
talent recruitment work through measures such as quarterly compliance reviews of recruitment activities
interviewer training and qualification certification.To ensure compliance fairness and transparency of recruitment SF implements a standardized
recruitment process. Job information is publicly released through unified channels. The selection is based
on objective evaluations of candidates’ abilities experiences and their fit with the positions eliminating
any form of discrimination based on gender age ethnicity religious belief household registration or
health status. All interviewers receive training on anti-discrimination and fair recruitment. Multiple people
are involved in key processes with cross-reviews to ensure fair decision-making. Recruitment results are
promptly communicated through official channels. The entire process is subject to internal supervision and
an employee complaint mechanism to effectively safeguard the equal employment rights of every applicant
and fulfill the Company’s commitment to diversity inclusion and social responsibility.SHL Zhaopin
At the same time the Company manages human capital risks from the recruitment end. In 2025 SF
implemented multiple measures such as refining recruitment standards and interview processes 2025 SHL China Talent Management Award- 2025 China’s Best
strengthening comprehensive background checks to prevent risks and introducing digital tools like
intelligent resume parsing and intelligent interview question generation to improve screening efficiency and Elite Talent Grand Prize Employer of the Year
interview standardization providing a solid guarantee for the quality of talent recruitment and risk control.The Company builds a diversified talent recruitment network integrating channels such as campus
recruitment social recruitment school-enterprise cooperation and internal referrals to precisely meet the
business development needs. In terms of recruitment channel construction the Company continuously
optimizes the functions of its own recruitment platform deepens cooperation with mainstream recruitment
platforms and innovatively uses new media matrices such as WeChat mini-programs and Douyin for
precise dissemination achieving a two-way improvement in talent reach efficiency and employer brand
influence.Liepin 58.com Shixiseng
2025 Extraordinary 2025 Most Influential 2025 Favorite
Employer of the Year Employer of the Year Employer of the Year
66SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
School-Enterprise Cooperation
SF focuses on talent training educational empowerment and industry-university-research collaboration and is committed to building a systematic school-enterprise cooperation system to open up the talent training channel
between the industry and education and empower the growth of college students.Building a Hierarchical Management Building a Benchmark Strategic Deepening Regional Resource Build a High-Level Collaborative Promote the Digital Transformation
System and Institutional Guarantee Cooperation Network Sharing and Base Co-Construction Communication Platform of the Entire Cooperation Process
By establishing a hierarchical management In 2025 the Company signed strategic Represented by the co-construction of SF has officially launched the preparatory The Company has successfully developed
structure covering universit ies across agreements with 8 top domestic universities the “SF-Chongqing Jiaotong University work fo r the “SF Schoo l -Enterpr ise and launched the “Fengxuetong” end-to-the country and formulat ing internal deeply participated in the construction of Talent Training and Internship Training Cooperation Conference” aiming to build end online platform for testing realizing
m a n a g e m e n t s y s t e m s s u c h a s t h e the “SF Class” system participated in the Base” the Company provides students a high-level communication platform that the digital management of the entire
Management Measures for SF School- formulation of talent training programs with an immersive practical environment brings together school leaders experts process from school-enterprise connection
Enterprise Cooperation Scholarships and curriculum optimization to ensure that equipped with real business scenarios scholars corporate management and agreement signing to project management
the Company has transformed school- teaching content is in line with industry s t a n d a r d i z e d o p e r a t i o n s t a n d a r d s alumni. Through result display best practice (scholarships internships training) and
enterprise cooperation from scattered trends. At the same time the Company professional technical equipment and a sharing and industry trend discussions effect iveness evaluat ion. I t improves
p r o j e c t s t o i n s t i t u t i o n a l i z e d a n d supported university discipline construction team of senior tutors. The cooperating the Company fu r the r p romotes the information centralization and transparency
standardized management improving provided industry insights case resources universities simultaneously provide high- integration of platform resources and providing digital support for the efficient
the transparency and sustainability of and practical platforms creating a model of quality students professional theoretical explores diversified cooperation models management and continuous optimization
cooperation. industry-education integration and forming support and scient i f ic research and covering scientific research breakthroughs of school-enterprise cooperation.replicable and promotable experiences. innovation capabilit ies. The two sides teacher resource sharing and lifelong
achieve in-depth collaboration through learning.resource integration and complementary
advantages.Sign Cooperation Agreements with Universities
67SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Talent Training and Career Development
SF highly values the career development of its employees laying Talent Training
out clear and diverse career development paths for all employees
and providing broad career development space. SF fully supports Adhering to the concept that “talent is the primary productive force” SF continuously improves its talent training system. SF has established
employees in achieving their personal career goals. The Company standardized training programs curriculum systems and evaluation mechanisms covering six key talent teams including frontline employees
has established a scientific and systematic talent training system. frontline managers middle-level managers senior managers professional talents and college students. Through a visualized training process
Through customized training programs and ability improvement plans SF effectively stimulates employees’ self-drive for learning and development.SF comprehensively enhances employees’ professional qualities
and comprehensive capabilities empowering employees’ growth and
injecting continuous talent impetus into the Company’s sustainable SF Talent Training System
development.For employee groups such as couriers warehouse keepers operators and customer service staff through the establishment and sorting of the
knowledge management system the Company systematically precipitates the ability standards into the positions continuously improving job competency
Frontline and performance. At the same time the Company pays attention to the long-term personal development of employees helping frontline employees obtain
Employees academic improvement and skill certifications. Based on industry transformation focusing on the construction of the customer manager team the Company conducts special hierarchical training such
Training as the “Forging Camp” and “Blade Camp” to accelerate the transformation of new employees and the improvement of key employees. The Company
organizes immersive business study tours to promote practice replication and establishes a monthly regular empowerment mechanism to continuously
strengthen the team’s combat capabilities and provide talent support for business growth.Frontline The Company conducts systematic training and upgrading for the frontline management team (branch managers). Guided by business operations through
Management the construction of a “1+1+X” training system and combining multiple forms such as theoretical empowerment practical drills and co-creation workshops it realizes differentiated empowerment in different scenarios effectively improving the team’s combat capabilities and business awareness and promoting
Team the win-win situation of business improvement and talent growth.The Company implements the “Fengyun Plan” for the middle-level management team providing a hierarchical and systematic training plan for the heads of
Middle-Level functional departments covering talents at all stages including reserves new appointees and incumbents. Guided by business goals through knowledge
Management empowerment practical operations in key scenarios co-creation of business plans and study tours to benchmark enterprises it conducts training combined with actual combat. It also introduces senior managers for coaching / mentorship and experience inheritance thus building a sustainable high-
Team quality management talent supply chain to strongly support organizational strategy implementation and business development.Senior To effectively support business activation in-depth development of the supply chain and the implementation of the international expansion strategy
Management through strengthened practical drills and strategic discussions the Company effectively promotes the transformation of the business thinking and the improvement of the comprehensive capabilities of the senior management team enhancing their ability to handle complex environments and seize
Team development opportunities and ensuring the healthy and sustainable development of businesses.Focusing on strategic core positions in international business and supply chain the Company systematically promotes the construction of professional
Professional talent teams iterates the position ability model and qualification requirements and develops and launches more than 2500 learning resources aligning
Team Building training programs and content with business development needs. By diagnosing the current situation of key business talents the Company specifically introduces key measures such as talent recruitment rotation
and replacement and optimization of the qualification system constructing a differentiated and customized talent development path and continuously
improving the job competency and professional depth of core position talents.Building a systematic and standardized training system for college students. Through a training model that combines “training empowerment practicalCollege exercises and project challenges” achieving in-depth vertical improvement of professional capabilities and horizontal expansion of business vision.Student Team Continuously refining internal mobility mechanisms encouraging high-potential university students to rotate across fields and departments to foster the accumulation of diverse experience and continuously broaden and accelerate career development pathways.
68SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Leadership Development
SF configures leadership training courses and specialized knowledge resources covering all employees (including part-time and contractors) in a hierarchical and classified manner around the talent training system to
meet the needs of employees’ career development and ability improvement and effectively support the full implementation of the succession plan. At the same time relying on the “Fengsheng” platform a one-stop micro-
application for employee development is created. Centering around the four modules of “Post Development-Company Training-Development Planning-Development Opportunities” the Company accurately matches career
paths with skill-improvement resources to continuously empower employees’ growth.Frontline Employee Training Programs: “New Salesperson Forging Camp” Frontline Management Team Training Program: “1+1+X” Training System Middle-level Management Team Training Program: Fengyun Plan
and “Industry Advancement Blade Camp” Series Training
The “1+1+X” training system is a leadership training program for frontline The “Fengyun Plan” provides a hierarchical and systematic training
The Company focuses on the construction of the account manager managers. Combining multiple forms such as theoretical empowerment program for the heads of functional departments. Guided by business
team and conducts systematic empowerment closely around the practical exercises and co-creation workshops through scenario-based goals through knowledge empowerment key scenario practices co-business strategy and ability map. By promoting the “New Salesperson empowerment and benchmark case exchanges the Company effectively creation of business plans and benchmark study tours and exchangesForging Camp” and “Industry Advancement Blade Camp” series training improves the practical ability and business awareness of the frontline it conducts training combined with actual combat. Senior managers are
in a hierarchical manner the Company accelerates the on-the-job management team. introduced to mentoring and experience inheritance to build a high-quality
transformation of employees and the in-depth professional development of supply chain of management talents.key talents.the Company carried out multiple sessions of the “New Salesperson the project accumulated multiple benchmark scenarios. More thanForging Camp” and “Industry Advancement Blade Camp” with more the Company carried out multiple sessions of the “Fengyun Plan” training
In 2025 1000 In 2025 260 training sessions were completed providing solid talent and In 2025than participants. with more than 300 participants.resource support for the continuous development of the business.Training Site of the “New Salesperson Forging Camp” Training Site of the “X Training Program-Supermarket Scenario” Training Site of the “Fengyun Plan”
Senior Management Training Program: Beacon Training Camp Newly-recruited Employee Training Program: Qifeng Plan
The “Beacon Training Camp” focuses on the comprehensive The “Qifeng Plan” designs a systematic curriculum around the three
leadership of business area managers. Through industry visits modules of “culture company and business”. It adopts a model that
strategic sand-table exercises and other forms it continuously combines “learning and practice” to promote the implementation of
improves the business insight and strategic thinking ability of business knowledge cultivates high-quality talents with SF spirit. At the same time
area managers drives the sustainable growth of regional business it helps to precipitate the professional wisdom of introduced talents and
performance and ensures that the Company maintains a leading edge create a positive organizational atmosphere laying a foundation for the
in the fierce competition. standardized management and orderly development of the talent echelon
in the functional system.the Company carried out multiple sessions of the “Beacon Training the Company carried out more than 10 sessions of the “Qifeng Plan”
In 2025 In 2025Camp” training with more than 200 participants. training with more than 1100 participants.Training Site of the “Qifeng Plan”
69SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Professional Ability Development Digital Ability Development
SF continuously deepens the construction of the professional talent team and continuously improves the post standard system. In 2025 the While promoting digital and intelligent transformation SF also
Company completed the formulation of promotion standards for multiple core positions providing an authoritative basis for the identification promotes the reshaping of employees’ digital capabilities. By building
selection and training of key talents. At the same time the Company iterated the qualification standards for multiple core positions and the a full-cycle digital learning platform and integrating diverse resources
supporting question bank providing standardized support for the entire process of talent “selection training employment and retention” and such as video courses special lectures and case knowledge
further improving the scientificity and transparency of talent management. bases covering dimensions such as cross-cultural collaboration
professional skills and management capabilities it supports global
In terms of talent training SF closely aligns with strategic orientation and core business goals. The Company precisely identifies the talent teams employees’ self-learning enabling personal growth to resonate with
in key business areas such as international affairs the industry and warehousing supply chain. The Company systematically assesses the enterprise development.current situation and development gaps of the teams and formulates differentiated construction strategies and plans. Through nine key measures
including talent recruitment personnel replacement and rotation external benchmarking learning key position inspections focus on key regions In 2025 the Company optimized and upgraded its internal learning
training of outstanding talents development of qualification courses implementation of empowerment training programs and construction of system actively introduced intelligent tools and high-quality external
basic training resources the Company comprehensively enhances the professional capabilities of key business teams. Meanwhile based on the course resources and increased the course development efficiency
position-ability model and knowledge panorama the Company gives priority to allocating training resources. SF has developed and launched over by over 50%. At the same time the Company upgraded the
2500 learning resources in total continuously empowering employees’ professional growth. knowledge-pushing ability built a personalized learning homepage
for each employee based on their positions and learning interestsTo further accumulate organizational wisdom and stimulate innovation vitality the Company explored and launched the “SF Innovation and realized precise matching and personalized recommendation ofBenefit-Creation Competition” and the “Expert Think Tank” mechanism this year. It built a platform for experience sharing and intellectual learning content effectively expanded the knowledge horizon of
aggregation effectively enhancing the organization’s innovation momentum and professional collaboration efficiency. trainees and improved the overall learning efficiency.SF Innovation and Benefit-
Creation Competition Expert Think Tank
Focusing on solving practical problems and realizing value Through a digital platform that hosts high-quality expert
through the setup of links such as independent topic selection resources both inside and outside the Company it realizes
team-based problem-solving creative roadshows expert full-process online management from expert identification
guidance and implementation of benefit-creation projects the demand matching service delivery to evaluation and feedback.competition gathers innovative ideas from professional talents in It covers all levels from simple problem consultations resource
various fields of the Company. connect ions to the provision of complex solut ions and
collaborative business development.In 2025 the first-ever competition attracted participants from
multiple regions across the country. It successfully incubated In 2025 the Expert Think Tank platform completed multiple
high-value projects involving innovations in business models demand matchings effectively enhancing the efficiency of expert
processes and products. It achieved a key leap of the talents and the level of business innovation and achieving
innovation model from “random events” to a “manageable and a win-win situation of realizing talent value and increasingsustainable process”. enterprise benefits.The on-site of the SF Innovation and Benefit-Creation Competition The on-site of the SF Expert Think Tank event
70SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Cultural Education Talent Base Development
With the in-depth implementation of the internationalization strategy Based on the group’s talent strategy deployment the Company has
SF continuously strengthens the training of cross-cultural collaboration coordinated the construction of talent growth bases in four locationscapabilities. In 2025 it launched the “Cross-Cultural Communication namely Dongguan Ezhou Beijing and Chongqing to build a talentManagement” course for all employees laying a foundation for building training network covering key regions across the country. All bases
an inclusive and collaborative work atmosphere. adhere to unified operation service standards and create an integrated
“empowerment and certification” training system to achieve intensive
Meanwhile the Company carried out a variety of special cultural coordination of learning resources and systematic precipitation of
education activities to systematically promote cross-cultural integration excellent practices.and global talent reserve.In 2025 the four bases carried out multiple training sessions covering
key groups such as new employees account managers college students
The Company precisely carried out cross-cultural adaptation
training providing special cultural adaptation training on the and branch managers. Through systematic operation the bases not only
culture business rules and social etiquette of the host country effectively empower the professional ability improvement of talents at
for overseas-dispatched employees. all echelons but also become an important carrier for corporate culture
dissemination and organizational consensus building continuously
injecting high-quality talent impetus into the Company’s sustainable Unveiling Ceremony of Ezhou Talent Growth Base
The Company regularly organizes cross-regional exchange business development.and learning activities for employees of different nationalities
building a real-scene cross-cultural communication platform.The Company improved the global talent reserve system
implemented unified management and standardized training for
global college students and consolidated the professional and
cultural foundation for their employment.The Company implemented special training for global reserve
management talents through methods such as course learning
headquarters practice and cross-regional project experience
creating a core talent echelon with a global vision and cross-
cultural management capabilities.To further unite the thinking and consensus of all employees and lead
the Company’s sustainable development in line with the business and
strategic development needs SF released the SF Cultural White Paperin 2025 establishing the core values of “customer-centered honesty-based and love-oriented”. During the reporting period the Company
took multiple measures to promote the implementation of corporate
culture construction: it organized all employees to sign cultural practice
commitment letters clarified the cultural behavior norms for each
position and united the cultural consensus of all employees; through
various forms such as consensus communication training empowerment
integrating culture into the system and promoting exemplary models it
comprehensively carried out the full-scale promotion of cultural concepts
and promoted the in-depth integration of corporate culture into business
management and daily behavior.Launch Site of Ezhou Talent Growth Base
71SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Curriculum and Lecturer Ecosystem Development
In the construction of the curriculum ecological system the Company
has continuously improved the digital curriculum platform and Warmth on Teachers’ Day: Paying Tribute to Guides – Lecturers Care Activity in 2025
resource system introduced innovative tools such as automated
curriculum introductions and intelligent question-setting significantly
improving the efficiency and quality of curriculum creation. The
Company systematically promotes the development and long-term On September 10 2025 the Company launched a Teachers’ Day care activity for lecturers. It set up three core sections: gift-giving and
operation of curriculum resources around core topics such as industry greetings offline activities and honor selection to convey corporate care and enhance lecturers’ sense of honor. During the activity the
empowerment international expansion and corporate management. Company carried out the “Gift-giving to Lecturers” activity presenting flowers to lecturers; held an offline theme activity named “MentorshipIn 2025 the Company pushed more than 200 high-quality special Spanning Mountains and Rivers Knowledge Spreading Far and Wide” with over 4000 lecturers participating in various interesting
courses covering key areas such as “artificial intelligence business sessions; and simultaneously selected and commended outstanding lecturers for 2025. A total of 121 “SF Good Lecturers” 39 “Bestscenario development industry supply chain and international Course Creators” 67 “SF Good Tutors” and 54 “SF Good Mentors” were selected.expansion” with over 100000 person-times of learning coverage.In 2025 more than 21000 new online training courses were added among which multiple
courses were organization – certified and
group-level certified forming a multi-level
high-quality curriculum resource network.In terms of the training and development of the lecturer team the
Company continuously promotes the construction of the lecturer
talent system aiming to improve the professional abilities of The Scene of the Lecturer Care Activity
lecturers and perfect the incentive mechanism. Through a market-
oriented operation model it gives lecturers the right to set prices
independently and the flexibility to arrange courses promotes the
continuous optimization and iteration of course content through
market feedback and stimulates the internal motivation of the
lecturer team.the Company’s pool of trainers exceeds
By the end of 12000 people. The activity rate of
2025
lecturers increased by 9.5 percentage
points compared with the previous year
gradually building a professional and dynamic
lecturers team.
72SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Support for Degree Programs and Professional Skills Certifications
SF encourages all employees (including part-time and contractors) “SF Sends You to University” Program
to pursue degree programs and obtain skills certifications offering
support like expense reimbursement to foster self-development. Through the “SF Sends You to College” project the Company builds a growth platform for employees to improve their academic qualifications
skills and comprehensive qualities. The Company also formulates the “SF Sends You to College” Project Management Measures to standardize
the subsidy policy for academic and skill improvement. SF provides financial support for all employees (including part-time and contractors)
who meet the application conditions helping them improve their academic qualifications and professional qualities and facilitating their career
development.In 2025 2158 Over RMB5.36 millionNumber of employees who completed the “SF Sends You to Cumulative subsidies granted to employees underCollege” program and obtained academic certificates or credentials the “SF Sends You to College” program
Breaking Through with Learning Achieving Long-Term Success with Perseverance –
The Growth Path From a Frontline Courier to an Operations Supervisor
He Xiujie an SF employee joined SF in 2013 and started from the frontline
courier position. Over the past decade he has been deeply involved in the
business worked hard at his post and fulfilled his duties. In 2023 with the
support of the “SF Sends You to College” project He Xiujie applied for further
education for a junior-college-to-bachelor’s degree continuously improving
his knowledge reserve and comprehensive abilities. His management
thinking and collaboration skills have been further optimized. Relying
on years of frontline business experience and the tempering of further
education He Xiujie has now been successfully promoted to an operations
supervisor responsible for managing nearly a hundred couriers. His growth
trajectory vividly demonstrates the win-win concept of the Company and
employees growing together.The “SF Sends You to College” Project Provides Support
for Employees’ Academic and Skill Improvement
73SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Vocational Skills Certification
The Company continuously improves the diversified employee learning and
development system focusing on enhancing employees’ professional abilities
and industry competitiveness. In 2025 on the basis of the existing support The 5th National Postal Industry Vocational Skill Competition
mechanisms for qualification certifications high-level certificate training and
short-term overseas assignment projects the Company further optimizes
the overseas assignment learning mechanism achieving refined and highly
adaptable upgrades taking into account both fairness and cost-effectiveness; In the national finals of the 5th National Postal Industry Vocational Skill
refines the definitions and evaluation criteria for qualification certificates and Competition in 2025 a total of 40 SF employees were successfully selected
high-level professional certificates providing clear guidance for employees’ through the city-level and provincial-level competitions. In the competition 17
training applications and ensuring that training resources accurately empower people won awards including 3 first-prize winners 3 second-prize winners and
the construction of core professional abilities. In addition to build a learning- 11 third-prize winners. In addition 2 previous award-winning contestants served
oriented organization and cultivate high-quality talents the Company provides as technical guides and were awarded the Excellent Technical Guide Award.tuition subsidies for third-tier high-performing employees applying for on-the- The Company gave administrative points and cash rewards to all the award-
job master’s degrees MBAs and other academic improvement projects. At
the same time the Company actively encourages employees to participate in winning employees fully recognizing their professional abilities and performance
external professional skill competitions and independent plans and conducts in the competition.internal skill competitions such as the first “Little Bee Cup” Craftsman Skill
Competition in 2025. It also gives special rewards to employees who achieve
excellent results in various competitions promoting learning and improving
abilities through competitions and comprehensively motivating employees to
improve their professional skills. The 5th National Postal Industry Vocational Skill Competition
The first “Little Bee Cup” Craftsman Skill Competition in 2025
In 2025 SF held the first “Little Bee Cup” Craftsman Skill Competition covering
six core positions such as couriers drivers transfer operators and warehouse
keepers. A total of 337 contestants advanced to the national finals and finally
42 contestants stood out and won the championships runner-up and third-place
awards. According to the development and honor incentive mechanism for award-
winning employees the Company provided administrative point rewards a fast-track for career development as management reserves an online label of “Blue-collar Craftsman” skill honor and knowledge precipitation and dissemination
for the award-winning contestants promoting the in-depth integration of the
competition value and employee growth and fully demonstrating the corporate
culture core of “love-oriented”.The Scene of the First “Little Bee Cup” Craftsman Skill
Competition in 2025
74SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Career Development
SF continuously improves the “dual-channel” career development system Talent Recommendation Mechanism
constructing a smooth and freely flowing career development path for
employees in professional and management sequences and providing growth To quickly respond to the urgent demand for talents in the diversified development of the business relying on the systematic corporate structure on the
support throughout the entire career development cycle. basis of existing mechanisms such as reserve selection and public recruitment SF launched a talent recommendation mechanism in 2025 granting the
authority to recommend talents to managers professional committees and outstanding frontline representatives. Relying on internal online applications
In 2025 the Company systematically revised core systems such as the Talent the Company realizes end-to-end closed-loop management of “instant discovery instant emergence and instant development” of outstanding talents.Management System Executive Management System Expert Management
System and College Student Management System. The Company optimized By authorizing frontline employees to identify talents the Company quickly expanded the high-quality talent reserve of each organization. Since the
mechanisms such as talent inventory and judge management. The Company implementation of the mechanism more than 1000 people have been recommended and identified and many of whom have successfully been selected
also improved the appointment standards and training plans for executives into the reserve echelon for key positions or officially taken up their posts. The in-depth promotion of the talent recommendation mechanism is gradually
and strengthened the training systems for experts and college students. By creating an organizational atmosphere of “everyone recognizes talents everyone recommends talents and everyone loves talents” injecting development
improving the institutional foundation the Company further clarifies the career momentum into the construction of the talent echelon.development paths for different talent echelons. Relying on performance
experience and multi-dimensional ability standards the Company creates Talent Succession Plan
a transparent and fair promotion environment. Through standardized
development procedures and appointment mechanisms the Company The Company attaches great importance to the construction of talent reserves for key positions and builds a systematic cadre succession system and
ensures that talents are objectively evaluated and effectively motivated cadre assessment and evaluation system to provide solid organizational and talent support for the high-quality development of the business.helping outstanding talents to stand out.Management Track Professional Track
(Management (Technical/Professional
Sequence) Sequence)
Senior Cadre Succession System
Management Expert Position
Position
In 2025 on the basis of the existing For successors of the senior management For successors of regional leaders the
Middle Senior reserve echelon training system the the Company adheres to the principle Company conducts in-depth analysis of
Management Specialist
Position Position Company further implemented a key of “selecting the best from the best” job responsibilities and key scenarios posi t ion succession system widely establishes an internal talent resource and constructs an integrated mechanism
selecting high-performance and high- pool and designs customized training of “selection-training-experience”. By
Junior
Management Specialist
potential talents as successors for middle programs around strategic leadership. combining internal recrui tment andPosition and senior managers and implementing Through a combinat ion of t ra in ing external recru i tment the Company Position a customized training plan of “one and practice models such as sharing expands the talent resource pool sets upperson one strategy” with practical o f execut ive prac t ica l exper ience challenging job rotations for experience
exper ience as the core to ensure leadership improvement workshops and and supplements with multi-dimensional
Entry-level Employee/ comprehensive succession planning and visits to industry benchmark enterprises evaluations such as mentor guidance
Assistant development programs at multiple levels. m u l t i p l e s u c c e s s o r s s u c c e s s f u l l y periodic evaluations and peripheral
achieved position promotions throughout interviews to ensure that the abilities
Career Breadth the year injecting fresh blood into the of successors are highly matched with
strategic decision-making level. job requirements. In 2025 mult iple
successors were identified to enter the
SF Career Development Dual Channel job experience stage reserving high-
quality talents for key positions.Management By leading and managing the team we can enhance our
Development management and professional capabilities secure management Cadre Assessment System
Channel promotions and thereby achieve self-development.Continuous in-depth development in the professional field To promote organizational self-innovation and maintain continuous vitality the Company continuously improves the cadre assessment mechanism
and the pursuit of professional skills. The Company regularly Professional conducting an objective real fair and prudent comprehensive evaluation of incumbents through cultural review ability assessment work style
assesses the professional qualifications of its specialists and Development supervision and peripheral feedback. Guided by the concept of “actively identifying talents precisely cultivating talents and sincerely nurturing talents”
assigns professional levels to employees through scientific Channel this mechanism effectively implements the talent selection goal of “selecting the virtuous and capable” providing strong support for the stable operation
and objective assessment criteria. of the business the implementation of strategies and the construction of corporate credibility.
75
Career DepthSF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Special
Topic Supporting Employees’ Multi-Faceted Development and Living a Vibrant Life with a Thousand Facets
SF always believes that every employee has infinite potential. At SF every dream is worth being supported and every passion has the
opportunity to shine.From the Ground to the Cloud: The “Fengyi Action” Fulfills Employees’ Flying Dreams Empowering Frontline Couriers: Broadening Diverse Career Development Paths.The internal recruitment program for pilots under the “Fengyi Action” from 2024 to 2025 has been successfully implemented. After nine SF also attaches great importance to the career development
months of interviews selections and pilot recruitment physical examinations two employees Xin Jiawang and Wei Shengfu have been and growth empowerment of frontl ine couriers. In 2025
successfully selected as flight cadets. Since 2007 the Company has helped nearly 120 employees achieve career transitions covering
professional positions in the aviation field such as pilots flight dispatchers and aircraft maintenance personnel. Among them there are many nearly 10000 frontline couriers embarked on
outstanding talents who have emerged from frontline positions.diverse development paths covering 24 key positions or
fields and started their own multi-faceted lives in the journey of
From “Ground Protection” to the “Air Domain” to Make Safety Assurance More pursuing their career dreams.Comprehensive.Xin Jiawang joined SF as a line aircraft maintenance technician in August 2022. He is
responsible for pre-flight short-stop support and post-flight maintenance of 737 and 757
aircraft models on a daily basis and has been deeply involved in the front line of aircraft
safety assurance. He seized the opportunity of cross-position career transition provided by
the Company and was successfully selected as a flight cadet. 1674 people
Transformed into professional and
Xin Jiawang hopes to integrate his aircraft maintenance experience into flight practice and
work with the team to improve the operation manual for special weather so as to form a technical talents.closed-loop of “ground maintenance” and “air driving” experience. At the same time he willparticipate in the optimization of freight routes from the perspective of “understanding bothaircraft performance and logistics timeliness” making each flight safer and more efficient and
firmly taking over the career relay baton from “flight support” to “flight leading”. Approximately 1700 people
Embarked on the operation or
management route.From “IT Escort” to “Cloud-Based Assurance” to Protect Express Deliveries “OneStep Higher”.Wei Shengfu graduated and joined SF in 2023 becoming a back-end R&D engineer in the
SF Aviation IT department focusing on the development and maintenance of core systems
related to air freight. He signed up for the pilot selection and was successfully selected
moving from behind the scenes to the front from system building to aircraft operation.Wei Shengfu hopes to bring the systematic thinking and rigorous work style accumulated
in the IT field into the cockpit become a professional pilot with solid skills and excellent
work style and become a direct force in ensuring the “highest level” of logistics timeliness.
76SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Digitalization of Talent Development Development of Pre-Retirement Employees
The Company continues to improve the digital system for talent SF pays attention to the development of pre-retirement employees formulates the Management Measures for Pre-Retirement Development and
development and focuses on building an end-to-end automated Re-hiring and creates an innovative dual-track mechanism of “experience inheritance + career continuation.”
and standardized talent management platform to comprehensively
improve the efficiency of talent development activities.Outstanding employees who have reached the
In 2025 the Company optimized the talent development process Create a full-time mentor position in the statutory retirement age and meet the physical
specifications and risk management and control mechanisms collection and dispatch role to provide a Experience Career condition standards are eligible for rehire in opened up the automated application of each link simplified system inheritance continuation their original positions or in special roles such
operations such as skill certification and career development career transition path for older senior couriers. as inspectors thereby extending their career
application and improved the organizational operation efficiency and value cycle.risk resilience-. At the same time the Company iterated the talent
label system and built a label library covering more than 1000 core
labels objectively depicting employees’ core capabilities through
multi-dimensional data. The label application has been implemented
in scenarios such as accurate talent matching and selection and By 2025 Rejoining as of
promotion and in the future it will provide systematic support for the 59 December 31 43
entire process of talent “selection training utilization and retention”. Number of couriers promoted to full-time pick- 2025 Number of retired employeesup and delivery mentors
In addition the Company actively explores the innovative application
of intelligent technology in the field of talent development and
promotes the intelligent capability certification tool. As an intelligent
module of the talent evaluation and certification system this tool In addition the Company holds exclusive retirement ceremonies for retired employees to pay tribute to their years of perseverance and dedication
can accurately identify the ability gap and provide data support for and convey the Company’s gratitude and care.customized training and talent standard iteration.Re-employment After Retirement Retirement Ceremony
77SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Performance Management and Compensation Incentive
The Company is committed to building a scientific and fair performance management and compensation incentive system objectively and comprehensively evaluating the value creation of employees fully stimulating the vitality and stability of the talent team and
promoting the common growth of employees and the Company.Performance Management
SF has established a scientific and efficient performance management mechanism for all employees implementing monthly quarterly and annual performance appraisals for different job categories and levels. The appraisal results serve as the core basis for key
matters such as salary adjustment position promotion and bonus distribution ensuring the effective connection between the Company’s strategy organizational performance goals managers’ personal performance commitments and employees’ personal performance
commitments promoting the in-depth integration of organizational development goals and employee growth and continuously guiding employees and the Company to make progress together. At the same time the Company closely links performance with compliance
with behavioral guidelines and strictly handles situations where employees violate the Company’s behavioral guidelines in accordance with relevant regulations to ensure the healthy and orderly operation of the organization.Upgrade the Employee Multi-value Evaluation System Improve the Employee Performance Evaluation Mechanism Promote the Digital Upgrade of Performance Management
In 2025 the Company completed the upgrade of the employee multi- Strengthen Performance Plan Management: Combine with the Build an online platform for post work processes: The
value evaluat ion system. I t disassembled and reconstructed the annual work plan optimize the employee goal setting and undertaking logic
business platform integrates the value output of all-scenario work around three core original on-post delivery value into three major dimensions: promote the in-depth alignment of post work delivery with the group’s strategic
service value strategic value and personal performance dimensions: professional flow task flow and collaboration flow. Incorporate goals strengthen the full-process control of goals and clarify the standards
commitment delivery multi-dimensional evaluation results into the multi-value evaluation system . This system upgrade strengthened the strong and directions for post value delivery. and achieve clear and visual presentation of value contributions through the
correlation between employees’ post value performance appraisal multi-value dashboard.and the Company’s business results. Horizontally it drives the value Refine performance grade levels: Use refined grade design to guide
transformation of “customer-centr ic” promotes the front middle employees’ continuous growth accurately identify each growth and progress
of employees achieve efficient allocation and precise investment of incentive Digitally empower fair performance evaluation:and backend services and support for the customer-facing end to
create business value; vertically it guides each position to focus on resources and give full play to the incentive-guiding role. Develop a differentiated performance grade evaluation scale embed it
the realization of the group’s medium-and long-term strategic value Strengthen the correlation between organizational and in the performance evaluation tool and make it fully public to managers
effectively ensuring the efficient advancement of strategic projects. individual performance: Set the proportion range for linking individual and employees to ensure the transparency and unity of evaluation
performance results with organizational performance encourage employees to standards.strive for the realization of organizational performance goals and strengthen
Employee Multi-value
Evaluation System the shared results between individuals and the organization. Connect multi-dimensional data links aggregate employees’ value
Clarify the performance evaluation rules for special groups: contribution data from various dimensions through the online multi-
Develop exclusive evaluation rules for groups such as newly recruited value dashboard as an important reference for performance evaluation.Business employees newly appointed cadres and employees with job changes provide
Service them with a buffer space for work study and role transformation and improve
Add performance calibration rules in the annual evaluation. If there
Value the scientific and human-oriented level of performance management. is a large deviation between the annual performance result and the quarterly performance average value evidence needs to be submitted
Set red-line constraints for performance grades: Incorporate to effectively avoid the “recency effect” in managers’ evaluations and
Personal compliance requirements such as employee code of conduct business ethics prevent employees’ long-term contributions from being ignored.Strategic Position Performance and information security into the bottom-line standards for performance
Value Delivery Value Commitment evaluation. Dispose of relevant compliance issues seriously in accordance
Delivery with the Company’s reward and punishment management measures. At the
V e same time set the annual performance grade threshold according to the Ov ae lur ec in Supporting Value
g
o Know
led
itation
severity of the punishment to strengthen the foundation for the implementation
Diffic mul it ni ge Talent Development Value Pr
ecip lue of corporate culture and values through red-line management.s Va
Upholdin ng oCultu ea
ti
ral rValues is the Bottom Line for All Valu
e C
In addition the Company has established a regular performance feedback and communication mechanism. Through regular performance interviews the Company ensures the
fairness and transparency of the performance appraisal process helps employees identify their own advantages and development potential and formulates targeted improvement In 2025 the coverage rate of employees receiving
plans accordingly. To improve the effectiveness of interviews the Company relies on online management tools to monitor the implementation of managers’ interviews and the regular performance evaluations reached
signing progress of improvement plans for employees with performance to be improved. At the same time the Company also launches a performance management knowledge
map to empower managers to improve their performance coaching ability and help employees grow continuously. Around the goal of human capital development the Company has 100%
achieved a 100% coverage rate of employees receiving regular performance evaluations.
78SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Compensation IncentiveSF adheres to the compensation concept of “high performance highreturn” and constructs a compensation system based on post value and
performance-oriented emphasizing that the return is closely linked to
value creation. For different job types and talent strategies the Company
implements a differentiated compensation strategy to ensure that
employees’ compensation has both internal fairness and external market
competitiveness.The Company establishes a performance-based incentive pay structure
covering all employees using the assessment results as an important
basis for salary adjustment promotion and bonus distribution to
encourage employees to grow together with the Company. For employees
with high-value contributions the Company provides competitive market-
based compensation returns. Through a differentiated and diversified
combination of long-and short-term incentives it attracts and retains
key talents aligns the long-term interests of the core team with those
of shareholders and the Company and injects strong impetus into the
Company’s long-term sustainable development.To ensure the fairness and transparency of the salary system the
Company has established a comprehensive salary communication
channel. By combining online salary inquiry tools with in-person
interviews the Company helps employees clearly understand their salary
structure. Meanwhile the Company regularly reviews the salary incentive
mechanism systematically analyzes market competitiveness and internal
fairness to ensure that the salary level is fair reasonable and attractive.In 2025 the Company commissioned a third-party company to conduct
a salary competitiveness survey on key positions covering multiple job
categories such as frontline pick-up and delivery staff and functional
positions. The survey results were applied to the formulation of job salary
standards and the review of salary health. The survey data indicate that
SF's overall compensation is highly competitive in the market.In addition in 2025 the Company launched the “Grow Together”
shareholding scheme (A shares) to further guide the long-term joint
development of employees and the Company achieving a deep binding
of the long-term interests of employees and shareholders. This employee
equity program has a wide coverage including directors (excluding
independent directors and actual controllers) senior management core
management and core backbones (including frontline employees such as
pick-up and delivery staff and operation staff). Through establishing and
continuously improving a long-term interest-sharing mechanism among
employees the Company and its shareholders the Company has not only
effectively enhanced employee cohesion motivation and creativity but
also encouraged key talents to shift their mindset from that of “managers”
to that of “partners” thereby fostering a stronger sense of ownership and
consolidating the Company’s long-term competitiveness.
79SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Protecting Employee Rights and Interests
SF always puts the protection of employees’ rights and interests in the first place is committed to providing employees with a diverse inclusive and equal To effectively protect labour rights and interests and fully implement the
working environment continuously pays attention to employees’ life and health creates a humanistic and caring working atmosphere and effectively commitments in the Declaration on the Protection of Employees’ Rights
enhances employees’ sense of belonging and happiness. and Interests the Company systematically assesses and manages
human capital risks. Through regular monitoring and periodic reviews the
Company ensures continuous compliance and efficient management. The
Protection of Employee Rights and Interests Company conducts a comprehensive statistical review at least once a
year focusing on the following core indicators:
SF strictly abides by the provisions of the United Nations International Charter on Human Rights the International Labour Organization’s Declaration
on Fundamental Principles and Rights at Work and the core conventions of the International Labour Organization and follows the Ten Principles of the
United Nations Global Compact (UNGC) to incorporate human rights protection into the entire process of business operations. Through the formulation Provide a market-competitive salary and regularly conduct dynamic
of the Declaration on the Protection of Employees’ Rights and Interests the Company systematically implements the requirements of eight international reviews of salary competitiveness based on market salary survey
conventions including the Convention on Equal Remuneration for Equal Work the Convention on Minimum Age for Employment the Convention on results.Prohibition of Child Labor the Convention on Discrimination in Employment and Occupation the Convention on Forced Labor the Convention on Abolition
of Forced Labor and the Convention on Occupational Safety and Health and establishes a human rights protection mechanism covering the whole
employment cycle. On the basis of statutory benefits add diverse non-statutory
benefits such as supplementary insurance additional allowances
To ensure compliance with human rights protection the Company continuously strengthens the monitoring and due diligence of human rights risks in its and additional leave.own operating sites value chains other activities related to business new business relations (mergers acquisitions joint ventures etc.) and potential
issues protecting the rights and interests of all stakeholders within the scope of its business. In 2025 no major human rights compliance risk events were
found in the Company. Monitor working hours including overtime management to ensure
employees’ reasonable rest rights.SF’s Statement on the Declaration on the Protection of Employees’ Rights and Interests
Pay overtime remuneration in full and on time in accordance with
the law to ensure the compliance and transparency of salary
Provide safety and health protection: resolutely implement the Anti-discrimination equal opportunity and diversity: No discrimination payment.safety production management policy of “safety first prevention on the basis of race color ethnicity sex sexual orientation religionfirst legal compliance all employees perform their duties age ancestry marital status physical condition or any other formcontinuous improvement and healthy development”; will be tolerated; Adhere to the principle of equal remuneration for men and women
to ensure the fairness of salary distribution.Prohibit the use of child labour and forced labour: strictly abide Anti-harassment and violence: harassment violence or threat of Regularly engage with employees’ representatives on working
by the applicable laws and regulations of the countries or regions violence of any level will not be tolerated or ignored; conditions continuously promote the improvement plan for living
where the business operates and invests and prohibit the use of conditions and focus on solving practical problems such as
child labour and any form of forced labour; employees’ living environment.Training and development: By establishing a scientific and
comprehensive talent training system the Company enhances
Respect for freedom of association: Respect the freedom of employees’ professional quality and comprehensive capabilities To smooth the channels for employees to express their demands the
association of employees protected by law. Employees have the provides employees with clear career development paths and Company has established a diversified communication and reporting
right to form and join legally recognized trade unions including helps employees achieve long-term career development. mechanism. Internal and external stakeholders can provide feedback
participating in trade union activities workers’ congresses etc.; or report labor rights-related issues through various channels such as employee symposiums regular meetings the labor union hotline (4006 883
783) the group audit email (sf5198@sf-express.com) the internal online
platform “I Want to Speak Up” and employee satisfaction surveys. For
reported matters that are verified the Company will handle them seriously
in accordance with the Regulations on Rewards and Penalties and take
corresponding human rights mitigation and remediation actions to minimize
The above commitments apply to all directors officers and all workforce of S.F. Holding Co. Ltd. and its subsidiaries. negative impacts. In case of serious circumstances the matters will be
transferred to the judicial authorities in accordance with the law.
80SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Prohibition of Child and Forced Labour Diversity Equality and Inclusion
SF strictly prohibits the use of child labor any form of forced labor and SF is committed to building a diverse equal and inclusive global workplace environment fully respects cultural differences in different regions
human trafficking and strictly complies with the laws and regulations of and strictly prohibits any form of discrimination. The Company implements the principle of equality throughout the whole process of employee
the operation location and international human -rights standards. In the recruitment promotion and development and salary management to ensure that there is no differential treatment due to factors such as gender
recruitment and onboarding process the Company requires all applicants region ethnicity religious belief or economic ability.to register their personal information in real-name through the online
system and the system automatically identifies the age to prevent people
Recruitment Remunerationunder 18 from entering the interview. At the time of onboarding face- management
recognition technology is used to verify the identity to ensure that the
person matches the ID. At the same time the Company requires third- Under the principles of fairness and equality The Company implements a fair
party partners to submit relevant certification documents to ensure that the Company has formulated a transparent T h e C o m p a n y s e l e c t s a n d just and transparent remuneration
their labor management meets SF standards and prevent human rights recruitment process that is clearly and promotes talents through open and management system and adheres
violations at the source. formally communicated to all candidates. The transparent internal competitions or to the principles of gender equality
Company will never restrict recruitment or appraisals providing equal promotion and equal pay for equal work to
employment based on gender geographical opportunities for all employees. ensure that all employees share in our
Working Hours and Welfare Protection region ethnicity religious belief or financial development fruits.situation.SF clearly stipulates working hours in the Employee Handbook Employee promotion
Attendance Management Regulations and Labor Contract and provides
convenience for employees with special needs. During holidays and
business peak periods by hiring flexible employees the number of The principles of equality in SF’s recruitment promotion and remuneration management
employees in some temporary and auxiliary jobs is supplemented the
work intensity of on-the-job employees is reduced and the rest time of SF continuously promotes the construction of a diversity equality and inclusion (DEI) culture. Through systematic human rights culture promotion
employees is guaranteed. The Company strictly implements the overtime and cross-cultural integration practices SF creates a workplace atmosphere that respects differences and promotes fair development.approval system eliminates forced labor guarantees employees’ rest
time and pays overtime pay in full and in a timely manner according to
the overtime hours to fully protect employees’ rights and interests.During the reporting period the Company organized all employees to participate in the publicity and implementation meetings of the
All employees enjoy equal rights and interests protection and the same Employee Handbook and the Declaration on the Protection of Employees’ Rights and Interests to ensure that 100% of all employees
standards are applied in employee management and rights-and-interests Diversity Equality received human rights training on diversity anti-discrimination and anti-harassment.and Inclusion (DEI)
protection. Temporary employees sign contracts or agreements in A special training course titled Diversity Equality and Inclusion: Improvement of Personal DEI Competence was launched covering
accordance with the law receive full labor remuneration and are covered 2155 trainees with an average learning time of about 1 hour. The course focuses on core contents such as anti-discrimination and
by employer liability insurance (including accidents) or work-injury respect for differences effectively improving employees’ awareness and application ability of the DEI concept.insurance. The Company attaches great importance to the protection
of employees’ rights and interests during major changes. In case of
restructuring or major adjustment the Company will explain the situation Support for
to the trade union or all employees 30 days in advance and properly Women’s The Company offers the Systematic Course on Women’s Leadership for female employees to help enhance their management
handle labor-contract-related matters after fully listening to the opinions. Leadership qualities and promote gender equality and equal career-development opportunities.During this year there were no major layoffs or strikes in the Company. Development
The Company coordinates global employees to celebrate traditional Chinese and foreign festivals enhancing emotional resonance
and cultural identity through cultural sharing and custom interactions. The Company also regularly organizes offline exchanges
Building a Global for global management and professional and technical personnel and invites overseas employees to visit and discuss at the
Collaborative and
Communicative headquarters to promote business collaboration and cultural integration.Ecosystem The Company releases a globally unified employee-behavior guide integrating the concept of multicultural inclusion into standardized
norms to guide global employees to respect cultural differences and practice the group’s core values and continuously build a
harmonious and inclusive global workplace ecosystem.
81SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Diverse Talent Team Anti-discrimination and Anti-harassment
SF adheres to the concept of diversified recruitment actively recruits outstanding female employees promotes local employment and expands channels SF has a zero tolerance policy for discrimination and explicitly prohibits
to introduce foreign talents to support the high-quality development of the enterprise with a diverse talent team. any form of discrimination based on race skin color ethnicity gender
sexual orientation religion age ancestry marital status physical
In 2025 female employees of SF accounted for 15.9%; Minority employees account for 6.3%. Among senior management women accounted for 29% a condition etc. in the Declaration on the Protection of Employees’ Rights
0.5% increase compared to 2024. Meanwhile SF’s overseas branches and subsidiaries are also actively hiring local personnel from operating places. As and Interests and advocates a workplace culture of mutual respect.
of the end of the reporting period there were 3381 foreign employees on the job an increase of 31% compared with 2024.The Company has refined the detailed rules for punishment of violations
of regulations and disciplines on harassment through the Regulations on
the Administration of Rewards and Punishments requiring all employees
Number of senior Number of women senior Percentage of women in senior Increased compared to study and sign online and at the same time conducting anti-
managements managements management to 2024 discrimination and anti-harassment awareness campaigns through emails
428 124 29 0.5 and training in various regions offline so as to create a healthy and equal % % workplace environment.
Protection of Women’s Rights and Interests
Proportion of women in revenue-generating functional Proportion of women in STEM-related positions SF continues to promote gender equality in the workplace and has management positions 27 established a female employee committee to protect the rights and 20.6 % interests of female employees according to law.%
Support facilities: 27 nursing rooms have been set up in offices
across the country to provide private safe and hygienic breastfeeding
space for lactating female employees.Employment Support for Vulnerable Groups Holiday benefits: Fully implement exclusive leaves for female
employees such as maternity leave prenatal check-up leave
On the premise of meeting job requirements the Company actively miscarriage leave breastfeeding leave and dysmenorrhea leave.provides employment opportunities for social vulnerable groups matching
them with job types with lower physical intensity such as customer service Health care: Organize female employees with free female health
and warehouse management and promotes employment fairness with screening checks for cervical cancer and breast cancer covering more
practical actions. As of the end of the reporting period SF has provided than 7700 people; Send gifts to female employees on Internationalemployment positions for more than 1500 people with disabilities. At the Women’s Day and commend the ”most beautiful employees”.same time SF provides support for disabled employees to perform their Special support: Hold the ”New Employment Form SF Female Knight
duties. For example SF sets up disabled restrooms in the office areaopens a caring passage during the morning rush hour and formulates Care Activity” and launch five action care plans for female riders in
special regulations on remote work for positions such as customer service the same city including rights protection physical and mental health
that can be handled online allowing disabled employees to work from academic improvement welfare care and exclusive condolences.home to reduce their commuting inconvenience.
2025
As of the end SF has provided employment positions 27 About 7700 people
of the reporting 1500 Number of maternity Number of female employees for more than. people with
period rooms with free cervical and breast disabilities cancer screenings
82SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Facilitating Employee Voice
SF attaches great importance to employees’ voices and suggestions builds diversified open transparent and responsive voice channels and encourages Democratic Management
employees to offer suggestions and actively participate in corporate governance. For employees who put forward useful suggestions the Company provides
incentives and growth opportunities; The Company commends and affirms organizations that actively adopt suggestions and promote problem solving. The Company fully respects employees’ rights to freedom of association and
collective bargaining continuously promotes the construction of the democratic
In addition to the regular telephone (trade union hotline) online channels (“I Want to Speak” platform) and email channels the Company in combination with management system continuously optimizes frontline-communication channels
different business scenarios innovatively builds special communication mechanisms such as the “Trade Union Visit” and Labor Dispute Mediation Center and effectively enhances employees’ sense of participation and well-being. In 2025
forming a comprehensive and timely -responsive employee demand feedback system to ensure that employees’ voices are responded to and effectively the Company added the Promotion and Protection Mechanism for Trade Union
resolved in a timely manner. Representatives and the Panoramic Map of Promotion and Training for Trade Union
Representatives and completed the revision of the Management System for Trade
Union Representatives further improving the training and protection mechanism
Communication Channel for SF Employees for trade union representatives and consolidating the foundation of democratic
management.To collect frontl ine feedback more timely and accurately the Company The Company elects employee representatives through democratic elections
comprehensively integrated the voice-expressing channels in 2025 and unified In 2025 every year and regularly holds employee representative meetings to discuss and
built the “I Want to Speak” platform integrating the voice-transmitting and echo-
116989 97.6 communicate on matters involving employees’ vital interests such as salary subsidies receiving function modules. All channel data is integrated into the voice dashboard % insurance benefits and vocational training. In 2025 the Company held a total of to achieve all-dimensional visual analysis and dynamic tracking of employees’
demands. At the same time a classification-based processing mechanism is Number of demands Resolution rate 17 online employee representative meetings fulfilling democratic procedures for 20
I Want to Speak handled throughout the rules and regulations including the Talent Management System the Attendance established for different types of feedback and the whole process of acceptance Management Regulations and the Information Security Management Measures to
closure and evaluation is systematically monitored to ensure that the demand- year ensure that employees’ opinions were fully incorporated into the decision-making
handling process is efficient transparent and effective. process.In terms of collective negotiation the Company actively promotes the signing of
To ensure that the employee demand channels are unblocked throughout the collective contracts to effectively safeguard the legitimate rights and interests of
year the Company has set up an employee care hotline covering weekdays and all employees. In 2025 the Company held a collective negotiation meeting on
holidays to provide employees with timely psychological support and problem-solving In 2025 group algorithms and held a signing ceremony for a special collective contract
channels. 25441 98.8 while simultaneously building a digital negotiation platform. The contract has been % successfully filed and recognized by the superior trade union. It mainly covers
This year the Company in cooperation with China Unicom implemented centralized
Employee Care Phone calls received Hotline connection aspects such as skill-based salary work subsidies career development education and unified management of the national hotline implemented the “Three-having”
Hotline by the Employee Care rate and training and democratic management marking the official implementation of the service standard of “efficiency quality and warmth” and set up two key indicators
(4006 883 783) hotline Centre first special collective contract in the express delivery industry that covers the entire of service efficiency and service quality continuously optimizing the response network and focuses on algorithm rules.
mechanism to ensure the steady improvement of the employee care service level.As a regular communication mechanism of the Company the “Trade Union As of theVisit” conducts reservation-based visit and research among all employees every end of the SF had established 150 labor unions In 2025
quarter. Through in-depth on-site and face-to-face communication by trade reporting
union cadres and representatives the Company systematically understands period in its whole network with 21600
employees’ demands in terms of work environment welfare protection and career Over 1100 99.7% representatives.Trade Union Visit development and timely feeds back the collected opinions and suggestions to Employee visit needs Union on-site
relevant departments to form a closed-loop processing mechanism. attendance rate In 2025
There were 162 elected 100%
staff representatives and Coverage rate
Focusing on employees’ interest demands the Company establishes and improves of employees in
a negotiation and dialogue mechanism sets up a labor dispute mediation In 2025 17 employee the SF Collective
committee and formulates the Working System of Labor Dispute Mediation representative meetings
Committee aiming to resolve conflicts at the grass-roots level and in the budding AgreementOver 104Labor Dispute were held.state striving to achieve “no conflicts handed up and no disputes leaving the Handling labor mediation disputesMediation Center station” and effectively maintaining the harmonious and stable labor relations.
83SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Advice and Suggestions Employee Satisfaction
SF continued to scale up the publicity and promotion of the system SF conducts quarterly satisfaction and engagement surveys among all employees. In June 2025 it was upgraded to Multi-dimensional Diagnosis of
that collects advice and suggestions revises and issues the Rational Employee Happiness Index focusing on six dimensions: culture engagement management efficiency development and return. Combining process
Suggestion Management Mechanism encourages employees to actively management (achievement of weak indicators) voice management (improvement of processing time and satisfaction rate) and fragmented surveys
offer suggestions and gives special awards for the adopted high-quality (improvement of low-scoring organizations) it conducts phased and multi-dimensional inspections of the perceived changes of employees in each
suggestions fully stimulating employees’ “ownership” awareness and organization in terms of purpose happiness and stress.enthusiasm for participation.In 2025 the Company conducted a satisfaction survey among all employees covering core issues such as organizational climate career development
In 2025 more than 29000 employees part icipated in providing salary and welfare and work environment. The survey results showed that the employee satisfaction rate was 86.1% and the employee engagement rate
suggestions collectively submitting over 30000 proposals. Among these was 84.1% in 2025.20
8200 suggestions were adopted resulting in rewards for 5000 employees.
Based on the survey results the Company continuously tracks the quarterly data of employees’ happiness index and satisfaction formulates optimization
SF employees’ rationalization suggestions focused on five categories measures for key issues such as optimizing the career development path of frontline employees and promoting the inclination of salary resources to the
including optimization of system functions improvement of operating frontline. The relevant improvement measures are actively supervised by employees and the improvement effects are regularly reviewed to effectively
tools optimization of system and process standards improvement of daily enhance employees’ sense of belonging and loyalty.operation regulations and improvement of office environment. Among
them system function optimization suggestions account for the highest
proportion reaching 57%.
5%4%
13%
21%
57%
Optimization of Improvements to Daily
System Function Operating Procedures
Improvements to Improvements to the
Work Tools Office Environment
Optimization of Systems Processes and Standards
20 Starting from June 2025 the employee satisfaction survey system has been upgraded to the “Multi-dimensional Diagnosis of Employee Happiness Index”. Compared with previous versions the new system covers more comprehensive survey
dimensions and adopts stricter evaluation criteria so the data is not directly comparable with that of previous years.
84SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Employee Care and Welfare
SF has built a comprehensive and diversified welfare care system for all employees covering multi-dimensional scenarios such as job security In terms of holiday welfare guarantee the Company takes multiple
medical care food housing and transportation important festivals and important moments in life of employees and their families. Through the measures to ensure employees are taking their paid annual leave
sinking care mechanism SF has an in-depth understanding of employees’ needs effectively solves practical problems enhances employees’ entitlements. One month before the expiration of employees’ annual
sense of belonging and happiness and enhances team cohesion and identity. leave the Company pushes one-to-one leave reminders through
internal communication software. At the same time the Company
Employee Welfare and Care System regularly reminds the human resources of each organization to review the implementation of internal annual leave and employees
On the basis of legally paying social insurance and housing provident funds in full for all employees SF further constructs a multi-level welfare who have not taken their leave can apply for an extension according
security system and provides a wide range of non-statutory welfare (including material non-pay benefits). In terms of life security SF sets up to the process.living support facilities such as employee canteens and dormitories to meet basic needs; in terms of work flexibility SF relies on the working-
from-home arrangements and flexible working hours system to improve work experience; in terms of special subsidies SF implements diversified In accordance with national and regional laws and regulations the
subsidies such as food subsidies communication subsidies transportation subsidies and cold-proof and heat-proof subsidies according to the Company provides comprehensive paid maternity-related leave for
characteristics of different positions. Through all-round and multi-level welfare care the Company continuously optimizes employees’ living and eligible employees including maternity leave prenatal check-up leave
working experiences enabling every employee to feel the warmth and care of the organization. paternity leave miscarriage leave breastfeeding leave and parental
leave to comprehensively protect the legitimate rights and interests of
employees during the child-bearing and child-rearing stages. Taking
Employee Welfare and Care System the regulations in most regions of China as an example:SF provides employees with a variety of welfare care measures from the three aspects of “ensuring Female They are entitled to 1-2 days of prenatal check-upbasic welfare improving caring temperature and helping long-term development”. employees leave per month (1 day per month from 9-32 weeks 2 days per month after 32 weeks) 98 days of basic
maternity leave and local incentive leave 1 hour of
Statutory benefit Welfare leaves Subsidies Living welfare Physical and mental breastfeeding leave per day before the child reaches
Providing insurance Only-child care Providing food Providing staff health 1 year old and 10 days of paid parental leave per
and housing fund leave special care subsidies dormitory staff Providing healthcare year before the child reaches 3 years old.paid maternity leave leave home-visiting communication canteen remote services such as free
prenatal check- leave outstanding subsidies work and other physical examination
up leaves abortion performance leave transportation living welfare online consultation
Ensuring leave breastfeeding subsidies winter and security video consultation
Male They are entitled to 15 days of paid paternity leave
leave paternity summer convenient medicine employees and 10 days of paid parental leave per year before
Basic leave parental leave subsidies purchase psychological the child reaches 3 years old.Benefits and other statutory consultation etc.benefits
In addition the Company provides nursing leave for parents of
only children/non-only children according to local regulations and
launches special paid holidays such as the Spring Festival special
Festival care Deploying care Performance Pension for Care for family Recreational and annual leave and home-visit leave in combination with the corporate
Providing Offering free care difficulties Providing sports activities
various holiday culture to help employees balance work and life and promote family shipping/family- Providing Providing special scholarships Organizing team
benefits/ visit holiday/family- incentive greetings and grants and building encouraging harmony.activities for visit transportation leaves activity assistance for other benefits participation in cultural
employees and allowance etc. funds and study abnormal weather/ to employees’ and sports activities Data on workforce’ family care leave in 2025Strengthening
Caring Support their families subsidies natural disasters/ children and holding art major diseases etc activities Number of Total Total
Leave type person eligible number of number of
to take leave leave days leave weeks
Parental leave (primary
Education and skill Diversified development Honor and Training caregiver) 5968 382970 76595
upgrading within the Company commendation Providing multiple learning
Providing subsidies for Smooth development Carrying out daily and resources and channels
Promoting education and skills pathways for transfer annual merit recognition
Parental leave (non-primary
upgrading and transformation caregiver)
1428518272436545
Long-term
Development Other than parental leave
(Paid family or care leave) 3184 13013 2603
85SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Caring for the Physical and Mental Health of Employees
Adhering to the concept of “love-oriented” SF always puts the physical and mental health of employees first builds a comprehensive protection In terms of physical health SF provides annual health check-up
system covering both the body and mind and continuously strengthens the health defense line of employees. benefits for all employees. Differentiated check-up packages are
In terms of mental health the Company attaches great importance to employees’ mental state builds a psychological counseling service platform divided according to employees’ age and job characteristics to
and regularly conducts mental health lectures and special counseling activities to help employees establish a scientific concept of mental health identify health risks and get timely medical reminders effectively
master emotion management methods effectively cope with work and life stress and improve mental toughness and well-being. protecting employees’ physical well-being.Care about Mental Health Health Employee health examinations have been management
organ ized benef i t ing 373000
In cooperation with Tencent Music it created an exclusive music people including routine physical examinations
healing platform and customized a “stress-relief song list” for By the end of 2025 800 Shunxin service centers have been set cervical cancer and breast cancer screenings
58000 at outlets across the network for female employees recuperation and free couriers with a view count of over 516 medical consultations in traditional Chinese Platform The “Shun Xin Ru Yi” self-psychological relaxation experience Psychological psychological activities were conducted covering more than medicine dentistry ophthalmology etc.
promotion
platform has been viewed more than 560000 times activities 15000 people The Employee Health Management Guide has been released and operated to improve the
health prevention awareness of management
One-to-one psychological counseling service from the online and personnel and pay timely attention to and treat
employees with physical discomfort.offline has served for more than 258 people By the end of 2025 a total of 2590 small and beautiful staff
Psychological Setting up a 24-hour hotline with 177 hotline consultation Workplace homes will be built equipped with s tress-relief props and posters.care services remodeling Safety Regular safety publicity has been carried out
education around four dimensions of holiday safety peak-
A total of 41 trade union staff across the network have been organized period safety seasonal safety and unexpected
to participate in the special empowerment training of Improvement of accidents. A total of 51 information posts
Six mental health care lectures have been organized covering Psychological Skills and Practical Group Psychological Counseling . have been released with a cumulative reading
Psychological 350 people Empowerment The passing rate of the trainees in the assessment reached 100% volume of 290000.lectures by experts laying a professional talent foundation for the systematic development
of employees’ mental health counseling
The “Safety Production Month” activity has been
carried out. A total of 9312 safety publicity
Mental Health Care is in Action Creating an Innovative and Heart-Warming New Model posts have been released 15588
t ra in ing sess ions have been o rgan ized
In 2025 SF innovatively constructed a “4 + N” mental health care 1900 excellent courses and 160 high-quality courses have been developed.system and jointly built an exclusive music healing platform with
Tencent Music. A “stress-relief song list” of 2000 songs was
customized for couriers. According to the characteristics of work
scenarios four time periods of morning noon evening return and The “Ankang Cup” safety knowledge competition
night were divided to provide immersive music healing services
to help young employees relieve work pressure and improve their has been held attracting over 110000
emotional management ability. At the event site SF also released people to actively participate. Through safety
the promotional video of the third Mental Health Care Month vividly education and publicity activities employees’ safety awareness has been cont inuously
showing the positive spirit of young people in the industry. strengthened risk prevention skills have been
improved and on-site safety hazards have been
SF Employees’ Music Healing Platform effectively reduced.
86SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
SF always puts the health and safety of frontline employees first. Around the three dimensions of health Work-Life Balance
protection safety guarantee and incentive improvement multiple measures have been taken to strengthen
the protection line for the rights and interests of couriers. SF has always paid attention to the work and life status of employees and their families. Through
diversified family care measures and rich cultural and sports activities it helps employees solve
71 practical life difficulties and promotes a harmonious balance between work and life. Continuously promote the sinking of medical resources. Throughout the year mobile physical
examination vehicle services were organized and carried out covering 20000 couriers Family Supporting Programs
bringing convenient medical examinations to the front line.SF extended its care to employees’ families continuously carried out family care activities for
Health First-aid kits containing 52 kinds of emergency medicines and equipment were configured in over employees provided exclusive welfare support enhanced the happiness of employees’ families and
Protection 18000 further united the team. outlets across the network to ensure that employees can quickly access necessary
medical assistance in case of emergencies.A special action called “Mobile First Responder” was launched organizing employees to participate
Advancement Benefits
in first-aid and AED use training. More than 1900 people have successfully obtained first-aid
certificates. AED devices were also placed in key locations to strengthen the frontline first-aid network. High-school entrance examination scholarships
Regular care actions were carried out for high-temperature and cold-weather conditions. During the of RMB537000 were distributed
Coping summer the “Cooling in Summer” activity covered over 13700 outlets benefiting more than to 267 children of employees admitted
with
Extreme 560000 couriers. In winter cold-proof supplies such as scarves hats gloves and knee pads to universities. Additional college entrance examination benefits such as college entrance
Weather were provided for the whole network covering over 27000 facilities and benefiting more than gift packages and luggage delivery benefits
94000 were also provided to effectively support the employees effectively improving the outdoor working environment. growth of the “Feng Generation 2”. “SF Employees’ Children are Awarded for
Their College Entrance Exam Achievements
Commercial insurance (employer liability insurance and 24-hour accident insurance) was purchased
for all couriers and the insurance amount was continuously upgraded. The annual cost was about
Insurance RMB79 million an increase of more than RMB20 million compared with 2024. Offering Student Subsidies/ Scholarship
Protection
Critical illness insurance was awarded to outstanding couriers. A total of 35000 people benefited The Company offered student subsidies of RMB1.16 million to the families of employees with serious diseases and major difficulties.and the cost was about RMB5.29 million building a multi-level health risk protection system.The Notice on the Incentive Plan for Safety and Image Management of Two-and Tricycles was released. Condolences and Assistance
Financial incentives were used to guide couriers to drive in a standardized manner effectively reducing
Safe traffic safety risks. In 2025 the accident rate per 100 two-and three-wheeled vehicles of couriers
Driving 30 More than 20408 employees and their families in difficulty were visited and the relief Incentives improved by more than % year-on-year. amount was about RMB12.25 million.Third-party liability insurance or compulsory traffic insurance was purchased for all couriers engaged in
pick-up and delivery operations and driving Two-and Tricycles to protect frontline operations.Summer Camp
More than 2000 employees’ children
were organized to participate in summer camp
AED Volunteer First Aid Training activities including study tours in Beijing SF
and part icipation in government-organized
kindergarten courses.Opening Ceremony of the SF Summer Camp
for Children
87SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Enriching Employee Leisure
SF regularly organizes healthy and diverse cultural and sports activities for employees to help them relax after work stimulate vitality and In addition the Company focuses on creating a strong festival
cohesion. The Company operates interest clubs daily such as the “Fengba Club” and interest groups spontaneously organized in various atmosphere. During the Dragon Boat Festival the Company
regions. There are more than 10000 regular members in interest groups across the network. At the same time various regions regularly carry organized more than 270 themed activities across the network.out characteristic cultural and sports activities in combination with festivals. The group organizes large-scale sports events for all employees Through forms such as dragon boat racing zongzi wrapping
every year forming a corporate cultural brand with large-scale wide-influence and cross-organizational integration comprehensively enhancing handicraft DIY and Hanfu flash delivery it accompanied 25000
employees’ cohesion and corporate cultural identity. employees and their families to spend the festival warmly. To
deepen humanistic care the Company held more than 700 collective
In 2025 the Company organized sports events such as basketball football and tennis and carried out interest activities such as writing Spring birthday parties of “Celebrating Birthdays with SF” across theFestival couplets flower arrangement and making round fans creating a positive and warm working atmosphere. In terms of large-scale cultural network; launched more than 70 public welfare activities of “Booksand sports activities the “Fight Together Win Together” national basketball league attracted more than 4000 players and more than 70000 for Vegetables Passing on the Love” accumulating more than 5000
people watched the finals online; the “Fengyu Flying” badminton exchange tournament in the Greater Bay Area adopted the “team competition + exchanged books all of which were used for the construction offun competition” mode integrating cross-organizational cooperation and participation of senior executives effectively enhancing employees’ employee clubs at various outlets effectively enriching the spiritual
sense of participation and team cohesion. and cultural life of employees.Basketball Activities Football Activities Tennis Activities Birthday Party
Writing Spring Festival Couplets Flower Arrangement Making Round Fans “Books for Vegetables Passing on the Love” Public Welfare Activity
88SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Guarding the Safety Line
SF always takes safety production as the core cornerstone of the
enterprise’s sustainable development continuously improves the Policy and Commitment Occupational Health and Safety Policy
safety risk prevention and control system and integrates the concept Safety Management Principles SF formulates and implements an occupational health and safety
of safety production into the entire operation process. It is committed policy across the Company to clarify the Company’s long-term
to creating a safe and healthy working environment for all employees Safety first focus on prevention legal compliance full performance direction in the field of health and safety. The commitments contained
and escorts the high-quality and stable development of the enterprise of duties continuous improvement and sound development in this policy have been fully integrated into the Company’s various
with solid safety guarantees. Safety Management Commitment management processes to ensure the soundness credibility and
reliability of the occupational health and safety management system.Safety Management System 1. Comply with national laws regulations standards and management requirements; Policy Statement
The Company strictly abides by the laws regulations and standards 2. Company’s top executive is the first responsible person for Our company is committed to giving priority to occupational health
in the field of national safety production. Combining the standard of safety of SF and the chief leaders of each organization are the and safety in all business activities ensuring the health and safety of
occupational health and safety management system (ISO 45001) first responsible person for safety of their own organizations in all personnel within the value chain including all the Company’s own
the Requirements of work safety management system for large daily work they implement the code of conduct and play the employees and relevant parties such as contractors and suppliers
and medium-sized enterprises (GB/T33000) the Guidelines for the leading role in safety; within the management scope. We are committed to building a safe
Construction of the Work Safety Management System of Postal 3. Adhere to the principle of people first and focus on prevention healthy and injury-free working environment continuously improving
Enterprises and Express Delivery Enterprises and the NOSA five- and achieve the target of “zero accidents”; the level of occupational health and safety management and ensuring
star system standard (health safety and environment) SF constructs 4. Provide necessary support including manpower resources compliance with national laws regulations and relevant industry
a panoramic view of safety production covering 11 units and a and funds; standards.total of 66 safety production elements forming a systematic safety
production compliance library to ensure the safety and controllability 5. Establish communication channels on safety management for
Policy Objectives
of the entire operation chain. all employees and stakeholders; 1. Prevent work safety accidents personal injuries and occupational
6. Control production safety risks effectively and take actions to diseases and continuously reduce safety and health risks.
minimize the risks; 2. Establish implement and continuously improve the occupational
7. Optimize the allocation of safety management resources and health and safety management system and continuously improve
Basic Personnel Risk continuously improve the safety management; the level of safety management.Management Management Assessmentand Control All employees contractors and other relevant parties of SF are 3. Ensure that the workplace facilities equipment technological responsible for maintaining the Company’s commitment to production processes and work behaviors comply with occupational health
safety management. and safety laws regulations and relevant requirements.
4. Regularly conduct risk identification assessment and hidden
danger investigation and management clarify the key points of
control set up prioritization action plans and rectification measures
Production Management to ensure that risks are controlled and rectification is in place.Site of Equipment Delivery Safety Traffic Safety 5. Improve the safety awareness and skills of all employees Management Facilities and encourage all employees to participate in safety management; Tools establish and operate an internal reporting consultation and reward
mechanism for accident hidden dangers to encourage workers to
actively investigate and promptly eliminate safety hidden dangers
in all links.
6. Improve the emergency response and support mechanism to
Occupational Management Emergency ensure that employees receive timely and effective protection and
Health of Related and Incident
Continuous
Management Improvement
rescue in case of emergencies.Parties Policy Communication and Implementation
This policy is communicated to all organizations employees contractors
Panoramic View of Safety Production and relevant parties within the Company and is linked to performance evaluations. The Company conducts monthly reviews of policy
implementation promptly corrects any issues identified and ensures the
healthy and stable development of the enterprise.This policy is approved by the Company’s Safety Production Committee
and will be regularly revised in accordance with changes in laws and
regulations and the Company’s development.
89SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
S a f e t y M a n a g e m e n t F r a m e w o r k a n d Safety Production Management System Safety Management System Certification
Responsibilities The Company regularly reviews and updates safety management The Company continuously benchmarks against international
To fully implement the Company’s safety management policies and system documents annually to provide scientific appropriate advanced standards and systematically promotes the certification
standards and effectively strengthen the supervision and control of and efficient safety production management guidelines for all of the safety management system to ensure that the entire network
safety work in various regions SF has established a three-tier safety organizations. In 2025 in line with the latest risk control requirements uniformly implements high-standard occupational health and safety
management system consisting of the group headquarters regions and and management practice experience the Company added and requirements. At present the Company has obtained the ISO 45001
grass-roots levels. It has also systematically formulated and continuously revised 14 safety management policies including the Regulations on Occupational Health and Safety Management System certification
improved relevant safety management systems to comprehensively the Whole-Life-Cycle Management of Transit Depots the Regulations required for business operations covering all employees and
support the Company’s safe production and operation. on the Supervision of Safety Production Liability Accidents and Major contractors.Accident Potential and the Regulations on Rewards for Internal
The Risk Management Committee of the Board is responsible for Reporting of Accident Potential continuously consolidating the
overall planning and decision-making on the strategic planning of work foundation of operating specifications and comprehensively improving The coverage rate of the ISO 45001 Occupational Health
safety approving and promoting the formulation implementation and the safety management level. and Safety Management System certification across the
change of relevant policies. To fully implement the main responsibility for safety production
The Safety Production Committee is established under the Risk prevent and reduce safety production accidents and protect the lives Company’s business operations reached 100%.Management Committee of the Board. The Chairman and Chief and property of employees the Company continuously promotes
Executive Officer (CEO) serves as the director of the Safety Production the full-staff safety production responsibility system organizes all
Committee and is the primary person responsible for the Company’s employees to sign the Safety Production Responsibility Letter and
safety production taking full responsibility for the overall safety clarifies the safety management responsibilities at all levels: The In 2025 the Company successfully passed the TAPA Trucking
production. The Safety Production Committee is responsible for Chairman and Chief Executive Officer (CEO) as the primary person Security Requirements (TAPA-TSR) certification which marks
guiding the Company’s safety risk management work establishing and responsible for safety production is responsible for formulating safety that the Company’s safety management system complies with
strengthening the safety production risk control mechanism regularly production goals and promising to provide working conditions that internationally recognized standards and reaches the “gold standard”
evaluating the completeness and effectiveness of the safety risk ensure the safety and health of all employees; managers at all levels for the security of the global high-value goods supply chain. Obtaining
management system providing professional opinions and suggestions are directly responsible for safety production within their respective this certification not only further reduces the safety risks during the
and reporting the progress and results of safety risk management work scopes of management ensuring the effective implementation of cargo transportation process but also enhances the Company’s
to the Board of Directors quarterly to ensure the implementation of safety measures and fulfilling their safety management responsibilities. ability to provide security for global customers. By building a dual-
the safety production strategic goals and performance. In addition the certification system of “ISO 45001 + TSR” the Company continuously
Company coordinates and promotes major safety protection tasks and Safety Management Objectives consolidates the foundation of safety management empowers
regular safety management work through monthly special meetings for operational practices with international standards and provides
the Chief Operating Officer and special meetings on safety risk control The Company formulates clear and quantifiable annual safety strong support for the stable development of the business.projects including safety risk management governance plans and objectives and regularly reviews and assesses safety management
rectification measures for major accident potential safety protection for work and its effectiveness. The Company takes reducing the
key government meetings and social events etc. casualty rate per million parcels as the core objective covering all employees and contractors. The compensation incentives for senior
The Safety Production Execution Working Group is a cross- management and all safety management personnel are directly linked
functional virtual organization under the leadership of the Safety to improvements in health and safety performance.Production Committee aiming to align safety concepts among various
functional organizations coordinate safety stances and rapidly advance In 2025 the casualty rate per million parcels of the Company
major safety initiatives. The working group is responsible for organizing decreased by 10% compared with 2024 successfully achieving the
major work safety inspections and special inspections guiding and annual safety management objective. The Company will continue
coordinating internal law-enforcement work on safety production to optimize the safety management assessment mechanism clarify
discussing and analyzing suggestions for major safety production the safety objectives for 2026 and break them down to all levels in
measures and ensuring the effective implementation of safety detail focus on key risk areas such as work safety liability accidents
management requirements at all levels. at sites spontaneous combustion accidents and traffic accidents strengthen process control and responsibility implementation strive
to achieve remarkable results in core safety indicators and drive the
SF Safety Management Structure steady improvement of safety performance. ISO
Progress
Safety Management Targets in 2025 Achievement of Targets
Risk Management Committee of the Board in 2025 Achievement
The casualty rate per million parcels21 Decreased Achieved
decreased by 5% year-on-year by 10%
Safety Production Committee
The Safety Production Execution Working Group 21 The data on the casualty rate per million parcels covers all SF workforce
and contractors.
90SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Safety Risk Management Mechanism Safety Risk Classification Control Safety Hazards Investigation and RectificationThe Company continuously deepens the construction of the “dual- SF uses the LEC risk assessment method to assess OHS risks In 2025 the Company strictly implemented the requirement ofprevention mechanism” of risk classification control and hazard and hazards and determines the risk value by calculating the “dynamically eliminating major accident hazards”. Based on the
identification and remediation constructs a scientific systematic product of the likelihood of occurrence of the event (Likelihood) the Standards for Judging Major Safety Production Hidden Dangers
and closed-loop safety risk prevention and control and hazard frequency of exposure to the hazardous factor (Exposure) and the of Postal Enterpr ises and Express Del ivery Enterpr ises i t
remediation process builds two lines of defense against production severity of the consequences (Consequence) providing scientific comprehensively promoted the rectification of the four prominent
safety accidents continuously improves the safety management basis for risk quantification. According to the requirements of the problems of sub-standard equipment and facilities inadequate on-
ability and comprehensively protects the safety of the Company’s Regulations on Hazard Source Identification Risk Assessment and site management non-standard employee dressing and non-
production and operation. Control Management all regions carry out comprehensive safety risk compliant operation and continuously improved the standardization identification and assessment work at least once a year and divide and normalization level of safety production in the operation sites.risks into four levels according to the principle of risk classification
Safety Risk Management Framework management and control: material risk major risk general risk and Improve the Regular Internal inspections and Self-
low risk. They define the risk management and control levels to
ensure that all potential safety risks are timely identified evaluated correction Mechanism
SF Safety Risk Identification Evaluation and and effectively controlled.Control Framework The Company revised and improved the Regulations on the Identification and Remediation of Safety Hazards in accordance with
Risk Level Risk Value Assessed Risk Control Level the Standards for Judging Major Safety Production Hidden Dangers 1 Build an organizational structure by LEC Method of Postal Enterprises and Express Delivery Enterprises and the
Company level (functional Twenty Detailed Rules for Standardizing the Safety Management
Set up a safety management working group Level I: Material risk D≥320 departments of the headquarters) of Business Sites and Processing Sites of Postal Enterprises and Express Delivery Enterprises . Each region in combination with its
Department level (business/ actual situation refined and formulated regional investigation and Level II: Major risk 160≤D320 allocation area) governance measures included all hazard items in the judging 2 Define evaluation units criteria in the scope of inspection and implemented the two-level
Level III: General risk 70≤D160 Workshop level (transit center hazard classification control of “major and general”. At the same timeDefine evaluation units based on field scenarios service outlets/supply station) the Company strictly implemented the system of “inspection led byassociated with departments positions operational the principal responsible person” requiring the principal responsible Level IV: Low risk D70 Team/position level
activities and operational procedures persons at all levels to lead at least one special investigation of major accident hazards every quarter to ensure full-coverage and no-blind-
In 2025 the Company based on a systematic safety risk assessment spot risk investigation. In 2025 the Company organized a total of 11
of 40 regions across the country and the work processes of all special inspections at the headquarters level covering all business
3 Identify sources of safety risks positions implemented dynamic updates and classification control areas such as fire protection electricity use equipment operation
of the 835 identified safety risk sources. By establishing a risk list operation vehicle management and express delivery safety and
Identify hazardous sources from the four elements of management mechanism formulating precise control measures simultaneously established a dynamically updated hazard ledger to
“people materials management and environment” and simultaneously carrying out special ability training for safety achieve closed-loop management of hazards.management personnel the Company effectively achieved full-
4 process closed-loop management of safety risks from identification Assess the risk level of safety Improve the Closed-loop Mechanism for Supervision assessment to disposal and review.
and Follow-up
Evaluate the risk level of safety using the Level of Risk At the same time the Company established an open and transparent
Evaluation of Operational Conditions (LEC method) In accordance with the requirements of the Guidelines for the safety communication mechanism relying on diversified feedback Construction of the Safety Production Management System of
channels to encourage employees to actively participate offer Postal Enterprises and Express Delivery Enterprise the Company
suggestions timely discover and prevent potential safety risks create
5 improved the management model of “hazard discovery-rectification Safety risk classification and control a safety culture atmosphere of joint governance and sharing by all implementation-verification closed-loop-list cancellation”. All safety
employees and jointly strengthen the enterprise’s safety defense line. inspections formed a list of hazard cancellation items clearly defined
Identify the management layer based on the level of the contents of “five implementations” including responsibility
safety risk time limit funds measures and plans and were supervised by
Fengsheng APP working group the principal responsible persons at all levels. Members of the
safety production execution working groups at all levels verified
6 Develop risk control measures Safety information system the rectification situation item by item to ensure the effectiveness
of problem rectification. By the end of 2025 a total of 6842
Control measures include but are not l imited to Channels for Fengsheng APP’s “Golden ideas” various safety hazards were found in the special inspections at the
engineering and technical measures management employees to and “Sound transmission” functions headquarters level including 66 major accident hazards all of which
measures education and training measures personnel escalate safety had been rectified.protection measures and emergency measures incidents Trade union hotline trade union service number
91SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Build a Digital Safety Control System In 2025 the Company focused on risks in express delivery safety In terms of safety culture construction the Company held the
fire safety and safety during key periods and organized about 2025 network-wide “Safety Knowledge Competition” and the safetyThe Company continuously iterates its safety operation system to 22 special rectification actions across the network covering all month theme activity of “Everyone Speaks Safety Everyonerealize functions such as task assignment for potential accident organizations and regions of the group and systematically promoting Knows Emergency Response-Spot Safety Hazards Around You”
hazards hazard reporting statistical analysis and dynamic updates. hazard investigation and precise governance. widely mobilizing all employees to participate in hazard finding
In 2025 a total of more than 170000 various types of hazards were and knowledge learning and creating a safety atmosphere of co-
reported through the system across the network. Relying on the In terms of express delivery safety the Company successively governance and sharing. At the same time in combination with
digital system the Company conducts accurate statistics and trend carried out special rectification actions such as real-name delivery quarterly special work safety inspections (covering fields such as fire
analysis on 13 key types of hazards including fire safety electrical inspection of fireworks and firecrackers illegal collection and delivery protection electricity use vehicles and equipment) it promoted the
safety and vehicle safety providing data support for the verification of wild birds and drug-control safety inspection of international mail normalization and refinement of safety management and continuously
and optimization of risk control measures. To address the pain and express items. It strictly implemented the “three systems” of consolidated the safety foundation for the Company’s development.points of the traditional management model such as relying on the collection and inspection real-name delivery and machine-based
experience of inspectors difficulty in detecting hazards in a timely security inspection to prevent prohibited items from entering the
manner or mastering the rectification standards the Company has express delivery channel. At the same time it conducted special
launched an intelligent hazard identification function to assist frontline investigations on sensitive chemicals strengthened source control
personnel in hazard identification and judgment. and process standardization and effectively built a solid line of
defense for express delivery safety.Deepen Precise Governance in Key Areas
In terms of fire safety the Company organized a major fire hazard
The Company focuses on high-risk areas within the site (charging investigation and rectification action. Focusing on key areas such as
areas platform areas and pedestrian-vehicle separation channels) charging areas warehouses and office places it conducted in-depth
and high-risk operation links (cage cart operation tail-lift truck investigations on key links such as fire-fighting facilities electrical
operation forklift operation flatbed truck loading and unloading etc.). circuits and flammable material management to eliminate fire
Centering on core risks such as fire mechanical injury vehicle injury hazards in a timely manner. In combination with key periods such as
and falls from heights it conducts special rectification in conjunction the end and beginning of the year and business peaks it also carried
with relevant functional departments. At the same time an AI large out seasonal safety special investigations to ensure the continuous
model is integrated into the Shentong system of the operating sites stability of the safety situation during key periods.to intelligently capture 28 types of violations such as personnelillegally crossing stepping on or crawling under the belt conveyor Safety month theme activity of “Everyone Speaks Safety Everyoneillegally going down the platform not wearing safety helmets and Knows Emergency Response-Spot Safety Hazards Around You”
seat belts during the loading and unloading process and the mixing
of pedestrians and vehicles.. The violation information is pushed to
managers in real-time to intervene in violations promptly promoting Configuration of “Two Poles and One Net” loading tools in the freight site
the transformation of accident control from “passive response” to
“advanced prevention”.During the express delivery transportation
100 process due to non-standard stacking or % bumps on the way the express items in the
Proportion of regions that have undergone the Company’s carriage are prone to shift or even collapse
safety production system evaluation posing a safety risk of being hit by falling
express items when employees unseal the
vehicle or open the door. To effectively
eliminate this hazard the Company fully
implemented the “two poles and one net”
100% loading protection measures on freight
Percentage of distribution centers22 that have been evaluated transportation routes in 2025. That is before loading and sealing the vehicle
by the Company in terms of safety production systems two adjustable extendable rods and a
high-strength anti-fall net are configured
to physically block and integrally fix the
express items at the rear of the vehicle
effectively preventing the express items
from moving forward during transportation
and accidentally falling when the door is
opened significantly reducing the risk of
object strikes and improving the safety Before rectification After rectification
22 The distribution center is a specific area used for receiving storing level of the loading and unloading process.
loading and dispatching goods in the logistics transportation process.
92SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Occupational Health and Safety Management
Adhering to the principle of “safety first prevention first” the Company integrates occupational health and safety management into all operation In terms of risk prevention and control of transport vehicles the
links of the entire logistics chain aiming to deeply integrate the safety concept into employees’ daily behaviors and standardized operation Company promotes a series of measures in stages and from multiple
processes and continuously consolidate the safety foundation for high-quality development. dimensions around the key links of vehicle safety:
Deepening the active safety management of vehicles in stages
All-around Safety Management
In the first quarter the axle temperature monitoring equipment is fully promoted
Centering on personnel safety as the fundamental core relying on reliable transportation equipment as the key guarantee and starting from to monitor the operating status of key components in real-time; in the second
compliant site construction as the pre-condition the Company has established an occupational health and safety management procedure covering quarter the “high-temperature intervention” mechanism is implemented to
the full dimensions of “people-vehicles-sites” achieving refined control of the entire process of “pre-event prevention-in-process control-post- conduct dynamic scheduling and forced cooling for high-risk routes and vehicles; in the third quarter the control threshold is moved forward. Throughevent closed-loop management”. the combination of intelligent identification and manual inspection the early
discovery and closed-loop control of faulty vehicles are realized.In terms of personnel safety management the Company systematically builds a full-chain safety management system covering key positions such
as drivers and airline crews to effectively ensure personnel safety and operational reliability. Full coverage of front-end fire-fighting stickers
All vehicles are 100% installed with front-end fire-fighting stickers. Tens of
thousands of sets are reserved at all sites across the network and a rapid
response mechanism of “replenishment upon damage or loss” is established to
Personnel safety risk management measures ensure continuous and effective protection.Construction of standardized vehicle inspection areasThe Company has established an integrated fatigue risk management mechanism of “monitoring-early warning-intervention-empowerment”. Relying on the self-developed safe driving platform and deeply integrating AI vision technology it More than 30 dedicated vehicle inspection sites are invested in multiple distribution centers and business areas and more than 60 professional vehicle
comprehensively collects image data of the internal and external environment of the vehicle. When the system detects inspection personnel are equipped. Through pre-technical inspections the
typical fatigue or distraction behaviors of the driver such as frequent yawning rubbing of eyes and line-of-sight deviation safety of vehicle departure is strictly controlled.it can immediately trigger an early warning and remind the driver through the in-vehicle terminal. At the same time high-risk
Fatigue events are synchronously pushed to regional safety management personnel to achieve second-level response and closed- Upgrade of on-vehicle fire-fighting equipment
driving loop disposal. On this basis the Company strengthens the application of results. For accidents or high-risk events caused by
prevention fatigue driving it not only raises the standard of economic penalties but also traces the management responsibility to relevant The original 6-liter water-based fire extinguisher is upgraded to an 18-liter
and functional personnel to compact the responsibility of process supervision. Meanwhile through methods such as launching combined device (dry powder is used to extinguish open flames and water-
control based is used for cooling and preventing reignition) and 20 liters of fire-fighting safety reminders during key periods on the App carrying out “daily safety quizzes” and “must-read before departure” and water is additionally equipped on the trailer to improve the ability to handle
learning typical fatigue accident cases it continuously strengthens the driver’s self-recognition and proactive prevention initial fires on the way.awareness. In addition in combination with the pilot of intelligent assisted driving vehicles the Company can further expand
the intelligent perception and proactive intervention capabilities through 7x24-hour background safety management diverse Standardizing the safe use of parking air-conditioners
safety management equipment and safety assistance functions such as adaptive cruise and intelligent avoidance.In view of the risks that high-temperature exposure in summer is likely to cause
seal failure and gasoline has a low flash point and is easy to volatilize the
Company clearly prohibits the use of gasoline generators to power parking air-
conditioners to eliminate safety hazards from the source.The Company attaches great importance to the physical and mental health of groups such as drivers and airline crew
members integrates humanistic care into the safety management system and continuously pays attention to their workload Pay In respect of sorting center management the Company embeds
and physical and mental states. By strengthening health promotion and psychological support guidance it enhances attention a comprehensive occupational health and safety due-diligence
employees’ awareness of stress coping and emotion management reduces potential safety risks caused by poor physical and to mental mechanism at the early stage of the project formulates and releases
mental states from the source and realizes the coordinated development of safe operation and physical and mental health. health the “Regulations on the Whole-life-cycle Management of Sorting Center Projects” and constructs an end-to-end management system coveringthe four major stages of “site planning-site acquisition-site construction-site operation”. It clarifies the division of responsibilities delivery
requirements and assessment mechanisms of each department. In the
planning and acquisition stage the Company focuses on conducting
To continuously strengthen flight and transport safety management the Company implements a strict “zero-tolerance” policy a systematic assessment of the geological conditions surrounding
Zero for alcohol. In air transportation SF Airlines strictly implements the alcohol testing system for crew members. Every month environmental sensitive points fire safety compliance labor employment
tolerance aviation doctors are arranged to conduct random alcohol tests on the crew members of flights departing from out-stations specifications and potential occupational hazard factors of the proposed
for alcohol for 1-2 days to ensure that the crew members fully meet the safety standards when performing flight tasks. In the land site area; in the construction and operation stage it synchronously transportation link to continuously improve the safety level of drivers the transfer center is equipped with alcohol testers at follows up the construction progress cost control project quality safe
each site to test drivers before departure. Once the driver’s alcohol consumption is detected or there are wine bottles in the and civilized construction practices and the occupational health and
cab the driver will be prohibited from undertaking transportation tasks and included in the blacklist. safety acceptance of equipment and facilities to ensure that the new site
meets national regulations and the Company’s occupational health and
safety standards from the source.
93SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
In terms of accident response and closed-loop governance for Contractor Safety Management
work-related health and safety incidents that cause injuries ill
health diseases and casualties the Company has established a The Company places equal importance on the safety and health Accident handling and assessment: The Company formulates
standardized and hierarchical accident response and investigation of contractors and permanent employees. By providing necessary graded handling rules for major abnormal accidents clarifies
mechanism to ensure rapid response in-depth analysis and effective resource support and safeguard measures it ensures that all the assessment standards and liability for breach of contract
closed-loop of events. contractors participating in the SF operation have a safe and healthy corresponding to the number of accidents on an annual statisticalworking environment. The Company incorporates all contractors and basis and forms a closed-loop management of “accident –Accident response and investigation mechanism permanent employees into the same health and safety management handling-assessment”.standards and performance indicator system as internal ones
Accident Reporting and Graded Response implementing unified standards unified requirements and unified Exit mechanism: The Company links the safety assessment
assessments. This year the Company completed the revision results with the contractor’s cooperation qualification. For
After receiving the accident report relevant local personnel must truthfully of the Carrier Safety Management System further clarifying the contractors that seriously violate safety regulations it imposes
enter the accident information into the AESP system within 1 hour and safety behavior specifications and accident handling procedures of penalties such as rectification fines and finally terminating the
submit the accident investigation report to the local safety production transportation contractors within the operating sites. cooperation ensuring the continuous improvement of the overall
director within 48 hours while notifying the relevant functional person in- safety level of the contractor team.charge. If the accident level reaches level 2 or above (such as causing The Company establishes a safety management mechanism thatserious injuries deaths or major property losses) they must immediately covers the entire life cycle of contractors from “access-inspectionand evaluation-accident handling and assessment-exit” deeply Preliminary selection requirements for contractor safety management report it by phone to the Headquarters Planning Scheduling and Safety
Center. At the same time complete the entry in the AESP system within embedding safety requirements into each management link to qualification
1 hour and submit a preliminary investigation report to the Headquarters ensure the safety and controllability of the supply chain. At the same
Safety Management Group within 12 hours to ensure timely intervention time it regularly supervises and evaluates the safety management
performance of contractors issues safety management reports Having a business license that matches the business services it and resource support for the accident.and systematically feeds back their effectiveness in system provides;
Accident Investigation Process implementation hidden danger rectification accident prevention No major or higher-level production safety accidents within the
and control and training implementation etc. to ensure that all past year;
employees including contractors are included in the Company’sAccident investigation process strictly follow the principle of “protect the Having applicable personnel qualification certificate special health and safety performance indicator system and promote thescene-fix the evidence-analyze the cause-determine the responsibility- equipment use registration certificate and transport vehicle steady improvement of the supply chain safety management level.educate and summarize”: Protect the accident scene at the first time license;
sample and seal up physical materials such as relevant equipment Contractor access: The Company establishes a strict contractor Purchasing necessary insurance for employees such as
materials and monitoring; Organize a cross-departmental investigation qualification review system setting access thresholds from transportation warehousing or personal injury (accident) team to deeply analyze the direct cause and management root dimensions such as enterprise compliance qualifications safety insurances.cause and clarify the responsibilities of the involved personnel and
management links; And carry out accountability warning education records vehicle and personnel qualifications and implementingand experience review in accordance with the principle of “Four No- a safety rating mechanism. Only transportation contractors thatExceptions ”. pass the comprehensive safety assessment and meet the access
standards can be included in the cooperation list. In addition the Transportation contractor safety management mechanism
Rectification Actions Company incorporates safety management requirements into the contract terms and signs a safety management agreement with Clarify the main safety responsibility: The contract clearly
the contractor to clarify safety responsibilities and standards. defines the main responsibility of the transportation contractor
Rectification actions systematically formulate corrective and preventive In 2025 the signing rate of the contractor safety management for personnel safety cargo safety and vehicle operation safetymeasures based on the four dimensions of “people materials agreement reached 100% eliminating potential safety hazards at throughout the transportation process and clarifies the accidentenvironment and management”. Clearly define the rectification plan the source.specific measures required resources responsible entities and liability determination standards and handling obligations;
completion time limits and form a traceable and verifiable rectification Inspection and evaluation: The Company conducts at least one Quantify the liability for breach of contract for major
plan to ensure that the rectification is carried out on schedule and a safety assessment on contractors every year. For suppliers that accidents: Set up a stepped penalty for breach of contract for
rectification report is submitted. fail to meet the standards it may order them to make corrections major abnormal accidents. In serious cases cancel the annual
within a specified time limit or directly terminate the cooperation cooperation qualification of the transportation contractor for all
Follow-up and Prevention as appropriate ensuring the implementation of high-standard involved routes;
safety management. For transportation contractors the Company Link safety performance with assessment standards :
requires them to strictly implement transportation safety operation
To prevent the recurrence of similar accidents the Company promotes Incorporate key indicators such as the number of safety accidents specifications and conducts regular supervision on the driver’s
the full implementation of rectification measures across the network and and the timeliness of abnormal reporting into the annual
optimizes relevant operating rules or management systems. At the same operation process vehicle safety status and the compliance of safety assessment system of transportation contractors. The
time include typical accident cases in safety training materials. Through transportation routes. At the same time it establishes a real-time assessment results are directly related to cooperation renewal
case notifications warning education and other means strengthen reporting mechanism for abnormal events to ensure that safety business volume allocation and other cooperation rights and
the risk awareness and emergency response ability of all employees risks are traceable and controllable. interests.and truly achieve the closed-loop management goal of “promotingrectification through cases and promoting safety through rectification”.
94SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
The Company is committed to building a long-term win-win Occupational Health and Safety Training
partnership with contractors. It not only strengthens management
requ i rements bu t a lso focuses on enab l ing suppor t and The Company has built a systematic hierarchical and classified
systematically improves their safety operation and management occupational health and safety training system providing customized To continuously improve the safety awareness of all employees
capabilities through a number of measures. training content according to the actual needs of different positions the Company conducts diverse safety education activities through a
and job levels. By establishing a “safety knowledge map” and a “safety combination of online and offline methods:Enabling measures management matrix” the Company has achieved full coverage of
training in six core areas including legal compliance work safety
Establish a resource-sharing and communication platform management traffic safety emergency management express delivery safety and occupational health. In addition to covering basic safety Offl ine Training: Regularly organize special training
Create dedicated resource groups for t ransportat ion knowledge the course content delves into relevant laws regulations activities including the safety production month safety
contractors and streamline complex procedures for core and policies and strengthens employees’ risk identification and knowledge competitions safety hazard investigation
scenarios (e.g. safety control and on-site inspections) into response capabilities in combination with specific business scenarios support for the peak business season during the Spring
visual “one-page SOPs” and checklists ensuring execution to ensure that all employees have the safety awareness and practical Fest ival and improvement of s i te standardizat ion
standards are clear and actionable. skills commensurate with their job responsibilities. to strengthen employees’ practical safety skil ls and
emergency response capabilities.Empower data-driven management capabilities SF Safety Training System
Open a digital management dashboard to transportation
contractors to support them in mastering key operating data Online Promotion: Through platforms such as the safety
such as the in-transit status of vehicles safety scores and Senior Management information account and the Fengsheng APP accurately
fuel consumption in real-time and promote the transformation Hold “professional lectures” to faci l i tate the push targeted safety tips and guidance to employees during
of the management mode from experience-driven to data- exchange of excellent management experience
driven. thus empowering senior management by equipping
key periods such as holidays peak business seasons
them with safety management skills. and seasonal changes to ensure that safety awareness is deeply rooted in the hearts of employees and integrated
into their daily work.Build a 7x24-hour proactive safety defense line Safety management professionals
Provide var ious forms of training for safety
Form a full-time in-transit customer service team to issue management professionals within the network
real-time warnings for high-risk driving behaviors (such as including internal sharing sessions external
fatigue driving) detected by the intelligent driving system tutoring sessions and special safety training.and immediately link up with the designated person in charge
of the contractor to intervene forming an efficient response All workforce
mechanism of “platform discovery-collaborative intervention”. 100%Develop their own safety training agenda by each
region across the network and provide standard Safety training coverage in 2025 (including employees and
safety t ra in ing for a l l employees ( inc luding contractors)
Establish a multi-dimensional empowerment communication contractors) in the region.mechanism
Organize monthly and quarterly empowerment communication
meetings for the heads dispatchers and safety management
personnel of transportation contractors. Review typical
accident cases interpret high-frequency violation scenarios
and share excellent management experiences to continuously
improve their autonomous safety management capabilities.Conduct specialized skills and policy training
Organize online and offline specialized training sessions
around the application of new technologies such as the use
of intelligent driving equipment as well as changes in new
policies such as transportation regulations and environmental
protection requirements to help transportation contractor
teams keep up with industry trends and reserve the safety
knowledge and skills required for future development.On-site Safety Training
95SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Safety Emergency Drills
2025 SF Safety Training Performance Data
The company strictly adheres to the Emergency Response Law of the People’s Republic of China and
The Company’s safety training has cumulatively involved more than 1 million participants covering the Work Safety Law of the People’s Republic of China . It has established a systematic and standardized
all employees emergency response work procedure and contingency plan system for emergencies providing clear and with a total training duration of over 11 million hours. operational action guidelines for internal operations and continuously enhancing employees’ ability to
respond quickly and handle emergencies effectively.For safety management professionals a total of 36 safety training sessions were conducted To continuously test and optimize the emergency response plans the Company organizes two large -scale
20000 fire emergency drills every year in accordance with national regulations. Through actual combat simulations covering more than people including: the emergency response mechanism is continuously strengthened to ensure that rapid and orderly actions
can be taken in the event of an emergency minimizing losses and impacts. At the same time the Company
33 Internal Safety Sharing 3 External Expert Empowerment regularly conducts emergency drills in multiple fields such as explosion-proof anti-terrorism traffic and public health and organizes special drills for business scenarios such as forklift accidents equipment-
The Company provides internal training resources to support safety management personnel in related injuries and heatstroke comprehensively improving the overall emergency response ability.acquiring professional certifications. As of the end of the reporting period 806 employees held In 2025 the Company organized and carried out network-wide safety knowledge training and emergency
drills and commended and rewarded regions that actively organized the drills and performed excellently
safety certifications. further stimulating the vitality of frontline safety management and strengthening the enterprise’s safety
defense line.In terms of transportation safety training the Company has built a diversified and three-dimensional safety
empowerment system for all employees and suppliers to continuously improve the risk prevention ability in
the transportation process. The main measures include:
In 2025 a total of more than 11000 fire safety training sessions and emergency drills
Promote the “Three-layer Space Driving Method”: Systematically optimize drivers’ behavior were carried out with more than 930000 participants.habits and cultivate 10 professional coaches through external certification to conduct practical
training and on-site guidance in different regions promoting the standardization and normalization
of driving skills;Build an online publicity platform: Establish WeChat and Douyin video accounts named “LandTransportation Safety Talk” and have released a total of 26 safety short videos to expand
the learning channels for frontline employees with lightweight and scenario-based content;
Regularly conduct on-site public courses: Offer specialized training courses every month to
continuously strengthen drivers’ safety awareness and operating norms;
Diversify online fragmented learning formats: Through modules such as “Daily Readings” “CaseWarnings” and “Targeted Training Exams” accurately push safety knowledge and immediately
reinforce learning to promote the in-depth understanding and practical implementation of safety
culture among employees.In terms of aviation safety training based on flight quality data monitoring the Company conducts in-
depth analyses of typical violation incidents and the top three individuals with the highest monthly incident
rates to precisely identify potential risk points in operations. Based on the data analysis results the
Company regularly conducts specialized training such as technical reviews and simulator intensive training
to continuously improve the technical skills and emergency response capabilities of flight crew members
ensuring that all crew members meet and maintain the highest industry safety standards and continuously On-site fire drill
consolidating the foundation for safe aviation operations.
96SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Building a Responsible Supply Chain
Adhering to the core value of “honesty-based” the Company deeply integrates supplier management into its corporate sustainable development Green Procurement Statement
strategy and is committed to creating a cooperative environment characterized by equality respect transparency mutual development win-win
cooperation and integrity. It promotes the establishment of a long-term collaborative mechanism with suppliers based on mutual trust and jointly Core Principles
builds a responsible and sustainable supply chain ecosystem. Comply with laws regulations and industry standards:
Supplier Management System The Company is committed to strictly complying with the laws regulations and industry standards of the operating location. It
The Company has established a comprehensive supplier management system strictly implemented supplier management regulations and establishes and implements a standardized supplier screening and
continuously improved the ESG risk management ability of the supply chain. By issuing regulations such as the SF Supplier Code of Conduct the management process based on the SF Supplier Code of Conduct
Company incorporates ESG requirements such as business ethics safety and occupational health labor and human rights and environmental cooperates with suppliers to improve their environmental performance
protection into supplier contract terms and regularly reviews the suppliers’ performance. In 2025 the Company comprehensively upgraded its and conducts training and communication projects to promote the
procurement and supply chain management policies completed the revision of regulations such as the Measures for the Contract Management of sustainable development of supply chain partners.the Procurement and Supply Chain Center the Measures for the Sourcing Management of the Procurement and Supply Chain Center the Measures Select partners with a focus on green initiatives and
for the Quality Management of the Procurement and Supply Chain Center and the Measures for the Sourcing Management of the Material Disposal responsibility:
Business. At the same time new policies and regulations such as the Measures for the Regional Procurement Sourcing Management the Measures Give priority to eco-friendly products and materials with renewable
for the Regional Procurement Contract Management the Measures for the Regional Procurement Quality Management the Measures for the degradable or recyclable properties especially focusing on
Regional Procurement Order Delivery Management and the Measures for the Regional Procurement Supplier Management were added further packaging solutions in the express logistics scenario.strengthening the standardization level of supplier access performance and quality management. The Company embeds the ESG concept into the
entire procurement process clarifies the orientation of green and responsible procurement and terminates cooperation with suppliers involved in Give priority to purchasing materials with relevant sustainability
major disputes that fail to make timely rectifications to ensure the stable operation of the supply chain. certifications.On the premise of ensuring quality cost and delivery efficiency
actively implement the localized procurement strategy. Prioritize
Supply Chain Management Structure Green Procurement Commitment qualified suppliers within the region to shorten the transportation
distance optimize the logistics route and reduce carbon emissions
The Audit Committee of the Company’s board is responsible for The Company formulates and implements the Regulations on Green from long-distance transportation.supervising the fulfillment of social responsibilities in the supply chain. Procurement Management integrating environmental protection
For major procurement projects and supplier cooperation decisions requirements into the full life-cycle management of suppliers. Through Give priority to suppliers that have set scientific carbon targets
the Company fully considers sustainable development factors and a combination of online and offline training and publicity it continuously (SBTi) or have a clear carbon reduction path and encourage the
forms a procurement committee composed of multiple departments enhances the sustainable development awareness and green procurement low-carbon transformation of the supply chain through procurement
such as the procurement department the procurement department execution ability of procurement management personnel. In procurement incentives.business demand departments professional and technical departments decision-making the Company gives priority to eco-friendly products and Incorporate green procurement into supplier management:
and supervision departments for comprehensive evaluation. It services that save energy water and materials and use clean energy Implement the following green procurement management action
comprehensively considers the impact of decisions on sustainable reducing resource consumption and environmental impact and promoting strategies:
development from multiple dimensions to ensure the scientific and the effective implementation of the green concept at the procurement end.forward-looking nature of decisions. To strengthen risk supervision in the Conduct special training and capacity-building guidance on the
procurement process the Company has an independent risk supervision On this basis the Company further systematizes and institutionalizes supply chain to improve the ESG management capabilities of
organization to strictly monitor the entire procurement process. At the the green procurement concept formulates a green procurement suppliers;
same time an internal control group is set up within the Procurement statement and clearly incorporates the green procurement principle Regularly evaluate and monitor suppliers’ performance in the field
and Supply Chain Center for self-inspection and self-correction forming into the procurement strategy ensuring the long-term and continuous of environmental protection incorporate suppliers’ environmental
a multi-level supply chain risk prevention and control system. promotion of green procurement through regulations and contributing to performance into the procurement decision-making process and the development of a low-carbon circular and sustainable supply chain promote compliance implementation and continuous improvement;
system.Actively promote the application and innovation of sustainable
Procurement Board of Directors’ materials in the industrial chain and jointly explore environmental
Supervision Audit Committee protection alternatives with upstream suppliers.Risk Supervision
of Procurement To continuously promote the sustainable development of the supply
Procurement Procurement Activities chain the Company sets phased green procurement management
Decision Committee goals and focuses on enhancing suppl iers ’ env i ronmenta l Risk Supervision responsibility awareness and practical ability.Organization
Management Procurement Supply Green Procurement Management Goalsand
Execution Chain Center By the end of 2026 complete written ESG assessments for 100% of key suppliers.By the end of 2026 enable 3000 suppliers to participate in ESG-
Supply chain management structure related training.
97SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Supplier Risk Management
The Company conducts a systematic analysis of the internal and Risk Identification and Access Management
external environment of the supply chain comprehensively identifies
and accurately evaluates various risks originating from the supply During the supplier screening phase the Company comprehensively considers the locations of suppliers’ operations industry attributes and
chain formulates targeted control strategies and continuously business categories. In addition to business indicators such as product and service quality it also evaluates risks in dimensions such as
promotes the optimization and improvement of supply chain risk environment health and safety labor rights integrity ethics and business relevance. Through a combination of on-site audits and written
management. reviews the Company conducts pre-entry evaluations of suppliers focusing on whether they have obtained relevant certifications such
as the Environmental Management System (ISO 14001) Occupational Health and Safety Management System (ISO 45001) Compliance
Management System (ISO 37301) and Information Security Management System (ISO 27001). For some specific product categories suppliers
are also required to provide environmental impact reports. Under the same conditions the Company gives priority to suppliers with better ESG
performance controlling supply chain risks at the source and promoting the implementation of the concept of responsible procurement.Supplier Screening Methods
The Company comprehensively reviews three dimensions: the countries/regions where suppliers are located the characteristics of the
sectors they belong to and the categories of commodities they provide. It conducts risk identification and hierarchical assessment of the
supply chain to identify potential ESG risks.Risks in specific countries/regions: Risks such as trade compliance in some countries or regions are included in key management and
control.Risks in specific industries: The Company focuses on labor-intensive manufacturing high-energy consumption production processes and
raw material suppliers with special pollutant emissions.Risks in specific products: The Company focuses on core operating materials such as express delivery bags packaging bags and
envelopes. It conducts classified assessments based on their attributes such as material recyclability and whether they contain restricted
chemical substances and gives priority to screening green products with characteristics of recyclability degradability and low environmental
impact.The Company implements hierarchical management of suppliers based on product categories and procurement amounts. As of the end of the
reporting period there were 714 Tier-1 suppliers and 1452 significant suppliers (including 495 significant Tier-1 suppliers and 957 significant
non-Tier-1 suppliers). The total spend on significant Tier-1 suppliers accounted for 95.9%. In 2025 the Company conducted a comprehensive
ESG assessment and management of suppliers. The main achievements are as follows:
The Company conducted desktop or on-site assessments of all 1452 significant suppliers with a coverage
Assessment Coverage
and Capacity Building rate of 100% and an audit pass rate of 96%. At the same time the supplier capacity building program
covered 100% of significant suppliers.After assessment a total of 61 significant suppliers were identified as having substantial actual or potential
Risk Identification and negative impacts. Among them 33 suppliers were included in the agreed corrective action or improvement
Mitigation plans (with a support coverage rate of 100% accounting for 54.1% of the total number of high-risk
suppliers) and their improvement was promoted through capacity assistance. The cooperation with the
remaining 28 suppliers was terminated due to uncorrectable risks.The Company carried out the annual supplier evaluation and commendation work commending a total of
Supplier Incentives and
Ecosystem Development 94 excellent partners including 5 best partners 18 outstanding partners 42 excellent partners and 29 recipients of single-item awards continuously building a supply-chain ecosystem of shared responsibility and
win-win results.
98SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Environmental and Social Impact Assessment Procurement Integrity Management
The Company attaches great importance to the comprehensive performance of suppliers in terms of environmental and social responsibilities. The company continuously improves the anti-corruption compliance
Through strict regulations and guidance it ensures that suppliers continuously meet the requirements in areas such as environmental protection management system formulates the Transparent Procurement
safety assurance and labor rights and promotes suppliers to strengthen their environmental management safety assurance and other social Notification Letter clarifies the responsibility of both parties for
responsibility performances to achieve the long-term goal of win-win development. integrity co-construction and signs the Integrity Agreement with suppliers strictly prohibiting acts of extortion offering and accepting
bribes to ensure that business activities are legal and transparent.Environmental Protection Health and Safety Labor Requirements In 2025 the Company revised the anti-corruption-related clauses in and Protection the Integrity Agreement further refining prohibited acts liability for
breach of contract and supervision mechanisms and continuously
strengthening the defense line of integrity procurement to build a
Environmental permitting and reporting Occupational safety Labor requirements transparent and fair supply-chain cooperation ecosystem.Pollution prevention Emergency preparedness Fairness and equality
1 All suppliers are required to proactively declare Exhaust emission Employee protection Registration the conflict of interest relationship with a
100% declaration coverage rate in 2025.
In 2025 the Company continued to deepen the environmental and social responsibility practices of the supply chain through the following key
initiatives and actively built a value chain that has a positive impact on society and the environment: 2 Bidding Supplier affi l iations shall be screened to prevent bid-rigging and collusion in tendering.Sustainable Issue the Supplier Sustainable Research Questionnaire to suppliers setting 49 assessment questions
development research around the three dimensions of environment society and governance to comprehensively evaluate The Integrity Agreement shall be signed with their sustainable development performance; 3 Contract clear reporting channels established. Suppliers Signing may file a complaint or report if they discover
any acts such as solicitation of bribes.Incorporate social responsibility requirements such as environmental protection health and safety and
Incorporate responsibility labor rights into the supplier contract terms and establish the ESG compliance baseline in the form of Procurement integrity management initiatives
clauses into contracts a contract to ensure that suppliers fully understand and promise to fulfill relevant responsibilities;
In terms of technical prevention and control and model optimizationthe Company updated and launched the “Digital Model for CollusiveIncorporate the suppliers’ practice performance in environmental and social responsibilities into the Bidding Identification” and improved the transparency and fairness
regular review and assessment indicator system to ensure that suppliers continuously meet the relevant of the procurement process through data analysis and risk early-
Regular evaluation and requirements of the SF Supplier Code of Conduct. In terms of personnel management suppliers are clearly warning. At the same time it continued to promote the application of
assessment required to have a reasonable number of employees and when verifying the number of employees it is Certificate Authority (CA) digital certificates in bidding and contract
necessary to verify whether they legally contribute to employees’ social insurance to effectively protect the signing strengthened identity authentication and electronic signature
rights and interests of workers and promote suppliers to continuously improve labor compliance. management to ensure that the process is trustworthy and tamper-proof.Conduct on-site assessments of suppliers around key environmental and social issues. In addition to In terms of regular due diligence and review the Company organizes
reviewing management system documents conduct on-site assessments of elements such as their annual due diligence investigations on suppliers’ anti-corruption
production environment 6S management implementation and workers’ working environment comfort. and anti-bribery and implements differentiated reviews based on
On-site assessments For the problems found the Company provides targeted rectification suggestions and support to help risk levels. Through regular data reviews and dynamic performance
and support suppliers continuously improve their sustainable development capabilities. For suppliers with obvious evaluations it continuously monitors the compliance status of
ESG risks or negative impacts that still fail to meet the minimum ESG requirements after communication suppliers to ensure that integrity requirements run through the entire cycle of supplier cooperation.the Company will exclude them from the contract candidate list. Suppliers with better ESG performance
are preferred in supplier selection and contract awarding when other conditions are comparable.In 2025 a total of 3770 suppliers participated in the
For suppliers with relatively weak sustainable development practices the Company actively conducts Company’s anti-corruption training with a coverage
Coaching training targeted coaching training and technical support. Through on-site guidance special training standard
and technical support rate of 100%.promotion and technical resource sharing it helps suppliers improve their environmental and social
performance and gradually meet the Company’s access and cooperation requirements.
99SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Supplier ESG Capacity Development Digital and Intelligent Management of Suppliers
The Company has built a systematic supplier empowerment program focusing on three dimensions of ESG In terms of digital and intelligent management of suppliers the Company continues to promote technology-
training practice sharing and capacity improvement to help suppliers comprehensively improve their sustainable enabled and process optimization. In 2025 the following key measures were implemented:
development management level and performance.ESG training: Provide comprehensive ESG training to all suppliers to ensure that partners understand and
follow the Company’s ESG standards and requirements. The training content covers key modules such as
anti-corruption quality management and environmental protection. This year the Company provided green ChatBI Intelligent Data Query Project
environmental protection special training to more than 3000 suppliers through a combination of online and offline
methods. Using AI + BI technology the scattered business system data is automatically integrated into a visual
ESG industry practice sharing: Regularly communicate with suppliers on sustainable supply chain management digital dashboard supporting AI intelligent analysis to assist management decision-making greatly
matters share industry best practices and invite partners to share their goals and practice results in various ESG improving efficiency specifically including:
dimensions. Using excellent enterprises as benchmarks learn and grow together with suppliers help suppliers
identify gaps and take improvement measures to continuously meet the Company’s sustainable development
requirements.ESG capability enhancement: For specific ESG themes the Company launches long-term supplier capability
building support projects to systematically enhance suppliers’ ESG management practices and performance and Support for Support for
promote the improvement of the overall sustainable development level of the supply chain. Support data retrieval data parsing
for context and analysis and provision
understanding presented in of optimization
charts
Collaborating with Suppliers to Build a Green strategies
Supply Chain Ecosystem
In January 2026 the Company successfully held its annual supplier communication conference with over
800 suppliers participating. The conference systematically publicized the Company’s latest requirements
and changes in procurement management mechanisms cooperation requirements and business Enriching Online Management Scenarios for Suppliers
development directions. In the green environmental protection session the conference focused on sharing
the Company’s milestone achievements in green packaging innovation low-carbon procurement practices
etc. and formally introduced the Science-Based Targets initiative (SBTi) to suppliers clarifying the Combining with the adjustment of the procurement foundation architecture further enrich the online
cooperation expectations in carbon emission reduction application of environmental protection materials management functions of the entire supplier lifecycle including:
and sustainable operations in the future. The Company advocates working with partners to promote green
transformation and jointly build an efficient resilient and responsible green supply chain ecosystem.Realizing the query and expansion
Launching the online process for capabilities of certified categories across procurement organizations improving
Supplier ESG Capability and In-depth certifying abnormal suppliers collaboration efficiency and management
Technology Support Program consistency
Supplier ESG capability and technology support is an important part of the Company’s supply chain
sustainable development management. Through a systematic project plan the Company provides targeted
technical support and guidance to suppliers helping them deeply understand and effectively implement Online Management of Tender Deposit
SF’s specific requirements in the environmental social and governance dimensions.New Application Field Projects: The Company empowers suppliers’ innovative development through In 2025 the Company realized the online management of procurement bidding deposits. Through
project cooperation. For example the Company collaborates with core packaging suppliers to jointly the system platform the deposits are accurately bound to the projects in which suppliers
develop new bio-based degradable packaging materials. While effectively reducing plastic use and participate on a one-to-one basis and the amount and method of deposit collection are managed
environmental carbon footprint it helps suppliers improve their R&D capabilities of green materials and the online. This measure simplifies internal processes improves the efficiency of deposit collection and
competitiveness of sustainable products. In addition the Company and suppliers carry out refined reduction refund further consolidates the foundation of account management and ensures that the accounts
design and successfully develop multi-color packaging straps and optimized vehicle security seals. By with suppliers are clear transparent and traceable.shortening the length of the packaging strap by 3 cm the consumption of the main raw materials is reduced
by 3%; the vehicle security seal is optimized from a double-lock core to a single-lock core and shortened by
2 cm reducing the consumption of the main raw materials by 8%. On the premise of ensuring function and
safety resource consumption and carbon emissions are significantly reduced achieving a win-win situation
of economic and environmental benefits.
100SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Equal Treatment of Small and
Medium-sized Enterprises
The Company actively supports small medium and micro-enterprises
and continuously promotes the diversif icat ion and inclusive
development of the supply chain. In 2025 the Company disclosed
the payment information of small and medium-sized enterprises
to the public in the national enterprise credit information publicity
system in accordance with regulations and there was no overdue
payment of small and medium-sized enterprises. At the same time
in some low-risk business scenarios the requirement for suppliers’
registered capital was moderately reduced to create a fairer access
environment for small and medium-sized enterprises to participate in
the Company’s business.To further promote the construction of a diversified supply chain
and improve local procurement capabilities the Company optimized
the regional procurement organizational structure in 2025. While
improving decision-making efficiency it more accurately identified
and introduced small and medium-sized suppliers with professional
capabilities. This change effectively lowered the access threshold
for regional suppliers and stimulated the participation vitality of
small and medium-sized enterprises. In 2025 the Company added
109 regional suppliers laying a solid foundation for building a more
resilient inclusive and competitive supply chain ecosystem.As of the end of the reporting period the Company had no
overdue payments.
101SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Contributing to Social Well-being
SF has always integrated the creation of social value into the core mission of enterprise development. Relying on the unique advantages of the
digital logistics network and supply chain it actively participates in rural revitalization educational public welfare medical assistance social
disaster relief and other fields using practical measures to give back to social livelihood and demonstrating corporate social responsibility with
actual actions.Rural Revitalization
As a leading comprehensive logistics service provider in China the Company has always closely linked its corporate development with social
responsibility. It actively promotes the upward mobility of agricultural products to cities and the downward distribution of industrial products to
rural areas strengthens and expands its support for agriculture and contributes to rural revitalization.Shaanxi fresh dates Chagan Lake fish
Shaanxi kiwifruit Jilin ginseng
Dried fruits in Xinjiang
Donggang strawberry
Xinjiang fresh fruits
Gansu wolfberry Inner Mongolia beef and mutton
Xinjiang medicinal herbs Gansu apples Beijing juicy peach
Gansu beef and mutton Dalian cherry
Ningxia beef and mutton
Yantai cherry
Ningxia wolfberry Shanxi apple
Qinghai Golmud wolfberry
Ningxia fresh dates
Shandong seafood Rushan oyster
Hairy crab (nationwide)
Tibetan cordyceps sinensis
Anhui tea Yangshan peach
Sichuan orange
Hubei orange
Suzhou loquats
Sichuan pomegranate
Hubei crayfish Anhui herbal medicine
Zhejiang Longjing tea
Sichuan cordyceps sinensis
Xianju waxberry
Fuzhou tea
Quanzhou tea
Yunnan blueberries
Yunnan matsutake mushrooms Xiamen seafood
Yunnan coffee Guangxi dragon fruit Dongguan durian
Guangxi orange
East Guangdong pomelo
Hainan mango
West Guangdong longan
South Jiangxi orange
West Guangdong lychee
SF Agricultural Product Service Network West Guangdong seafood
102SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Promoting the Upward Mobility of Agricultural Products
In 2025 the Company actively responded to national policies and In addition Leveraging its core strengths in production-to-sales matchmaking the Company collaborated with leading short-video platforms to
collaborated with local governments to create regional agricultural launch the themed campaign “Speaking for My Hometown” empowering niche agricultural products to enhance brand recognition and expand
product brands. While establishing and facilitating online channels market reach. The Company also established an innovative influencer partnership framework drawing on its longstanding expertise in premium
for agricul tural products i t achieved the unity of business agricultural logistics to precisely connect livestream hosts with agricultural suppliers. This initiative opened new sales channels for farmers while
development and social value. For key agricultural product projects generating incremental fresh produce shipment volumes.it collaborated with local governments and associations to plan
various brand promotion activities including but not limited to online/
offline promotion conferences harvest festivals picking festivals Deeply involved in the Gannan navel orange industry transforming
fishing festivals e-commerce festivals and exhibitions. Through from a logistics service provider to an industry enabler
multiple measures it enhanced the communication effectiveness
and promotion capabilities of agricultural brands. In 2025 the
Company helped establish over 32 regional agricultural product The Company continues to be deeply involved in the Gannan navel orange industry gradually realizing the transformation and upgrading
brands and held promotion conferences and logistics solution press from a transportation service provider to an all-industry chain ecological enabler. Guided by the rural revitalization strategy with industrial
conferences for fresh agricultural products such as tea blueberries integration at its core the Company uses innovative models such as “Events +” and “Cultural and Tourism +” to resonate with the
cherries f lowers lychees and bayberries during their peak Gannan navel orange industry and jointly draw a “orange-colored” revitalization blueprint.seasons promoting the development of the agricultural industry and
contributing to rural revitalization. In terms of logistics network construction the Company has built a logistics service network covering the entire production area. It not
only sets up village-level service stations to solve the “first-mile” problem but also innovatively uses the idle capacity of buses to reduce
The Company continuously strengthened its research on carton transportation costs. Meanwhile it invests in mobile sorting equipment and opens direct-delivery routes from the origin enabling navel
packaging starting from four dimensions: “freshness preservation” oranges to reach Singapore from Ganzhou within 3 working days significantly expanding the sales radius.“brand identifiability” “cultural attributes” and “eco-friendliness”. In
2025 it created 32 exclusive carton packages for more than a dozen In terms of brand and industry empowerment the Company collaborates with local governments to launch cultural and tourism integration
fresh produce varieties such as tea cherries lychees bayberries scenarios such as the “Orange BA” (Rural Basketball Association) tournament and the “Song Dynasty-themed Night Market” navel orange
and matsutake mushrooms continuously enhancing the market photo ops promoting the implementation of the “Navel Orange Prince” IP mascot.. It participates in formulating the Gannan Navel Orange
competitiveness of regional characteristic agricultural products. Delivery Service Standard obtains the authorization to use the geographical indication of Gannan navel oranges issued by the Gannan
Navel Orange Association of Ganzhou City and launches co-branded customized cartons. At the same time it organizes live-streaming
e-commerce training and holds marketing forums to help fruit farmers master new-media sales skills truly “teaching them how to fish”.By the end of 2025 the SF service network for promoting the
upward mobility of agricultural products had covered more From temporary pick-up to ecological empowerment the Company has completed the transformation from a logistics service provider to
2800 an industry enabler providing a reference model for the transformation and upgrading of rural characteristic industries.than county-level cities across the country
serving a total of more than 5500 fresh produce
varieties. In 2025 cargo volume of specialty agricultural
products exceeded 8 million tonnes effectively supporting
the transformation and upgrading of local agriculture and
contributing to income growth for farmers.The “orange” wall in the Song Dynasty-themed Night Market attracts a large number of tourists to take photos.
103SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Logistics empowers Dingxi Chinese herbal medicine overcoming the “first-mile” Deeply Involved in Rural Logistics
bottleneck to help the industry expand beyond the villages To accurately serve the express delivery needs of agriculture and rural
areas the Company continues to be deeply involved in the construction
of the county township and village three-level logistics network. While
Dingxi Gansu is an important Chinese herbal medicine production area in the country. However due to inconvenient transportation and poor opening up the upward channels for agricultural products it efficiently
logistics the difficulty for farmers to send out their medicines has become a key bottleneck restricting the industry’s development. The Company supports the downward distribution of industrial products to rural areas.uses a comprehensive logistics solution focusing on service network professional packaging and transportation timeliness systems to help
Dingxi Chinese herbal medicines break through the “last-mile” problem and transform the resource advantage into industrial momentum. In 2025 the Company’s strategic focus will be on the construction of
rural end-networks. By increasing resource investment and support
In terms of logistics services the Company promotes the sinking of services widely setting up service points in townships and villages and it actively promotes the upgrading of the rural logistics industry and
forming mobile pick-up teams to go deep into the fields. It provides a one-stop service of “on-site packing weighing and immediate shipping” responds to and supports the national rural revitalization strategy with
enabling farmers to ship their medicines right after harvesting. Considering the characteristics of Chinese herbal medicines being prone to practical actions. Specific measures include:
moisture and deterioration the Company customizes a professional packaging solution equips with moisture-proof and pressure-proof materials
and opens direct-line transportation to major Chinese herbal medicine markets across the country greatly reducing transit time and effectively Strengthen the terminal service network
ensuring the quality of the medicines.Through a combination of multiple models such as self-operatedIn terms of value-chain extension the Company provides “warehousing branches township agents and service stations the Company increases+ express delivery” integrated services for local e-commerce customers the density of rural service touchpoints and provides diversified
and offers full-process traceability support for premium Chinese convenient and user-friendly end-services such as door-to-door delivery
herbal medicines in combination with Fengsu technology. At the self-pick-up points and delivery to villages.same time relying on its integrated air-ground transportation network
and warehousing-distribution integration capabilities it efficiently
undertakes large-volume logistics between pharmaceutical companies Optimize the regional distribution model
and national wholesale markets becoming a “reliable partner” in the
Dingxi Chinese herbal medicine industry supply chain. Implement a regional distribution mechanism with core townships as
hubs increase the frequency of distribution streamline the express
From service sinking to industry empowerment the Company always transit and handling processes effectively reduce the risk of cargo
takes it as its responsibility to assist and benefit farmers. It activates Mobile pick-up team damage and significantly improve the end-delivery timeliness.rural industrial vitality through the logistics link enabling more
high-quality Chinese herbal medicines to leave the mountains and Improve the pick-up and delivery
contributing the “SF strength” to rural revitalization. timeliness in rural areas
Box trucks and additional loading and handling equipment were deployed
at township outlets to improve freight service capacity to and from
villages.Strengthen the freight support capacity
Rural branches have invested in van trucks and added handling tools for
large goods to enhance the ability to deliver large express parcels to and
from villages.Standardize the image of end-points
Fully promote the construction of standardized end-point stations unify
the Visual Identity (VI) system and internal layout set up a reception
area and focus on improving the experience of rural elderly people when
coming to the store to send and pick up parcels.By 2025 the Company’s network service covered 99.86% of counties.There were over 42000 self-operated and agency branches and over
300000 cooperative stations and co-distribution stores. A relatively
complete rural express network has gradually taken shape enabling
farmers in villages to enjoy more convenient express services. The
Company’s annual logistics revenue in the rural market increased by
The courier at the rural pick-up point helps with packing. 15.2% year-on-year leading the overall revenue growth.
104SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Public Welfare and Charity
The Company is well aware that enterprises are inextricably linked with SF Lotus Education Aid Program
society. It always remains true to its original aspiration continuously
engages in public welfare undertakings and actively fulfills its social The SF Lotus Education Aid Program is a national development-oriented student aid program launched by the Company in 2012. Centered on
responsibilities. Since the establishment of the SF Public Welfare students it focuses on individual growth and development. Through a systematic application process in-depth family visits continuous financial
Foundation in 2012 the Company has been deeply involved in public support and all-round accompanying tutoring it helps students in difficult situations complete their studies smoothly cultivates them into good
welfare fields such as medical care education and environmental young people with excellent character and a rich inner world and helps them adapt to social development actively give back to society and
protection and has given back to society through practical actions. contribute to their hometowns.In 2025 the SF Public Welfare Foundation focused on the construction To further support the growth and giving back actions of the assisted students the SF Lotus Student Aid Giving Back and Empowerment Center
of governance capabilities. Combining industry trends and actual was officially launched in 2024 providing convenient and efficient learning services for students who participate in the “Giving Back” initiative. The
operations it systematically sorted out and revised rules and empowerment center integrates functions such as course registration community participation course evaluation learning duration recording
regulations adding and revising more than 30 core systems such as and learning certificate issuance stimulating the learning enthusiasm of students who give back and the empowerment effect is remarkable. The
the Management System for Public Welfare Projects of the SF Public course system covers live classes recorded classes and offline classes to meet diverse learning needs. In addition the SF Lotus Education Aid
Welfare Foundation and the Measures for the Administration of the Program also carries out a variety of public welfare activities providing interesting and meaningful practical experiences for students who give
SF Public Welfare Volunteer Service Team. It also compiled the Risk back helping them grow discover themselves and build beliefs in the activities.Management Manual of the SF Public Welfare Foundation to improve
the ability of risk identification early warning and handling. In terms By the end of 2025 the program had covered 68 counties (cities districts) in 18 provinces (autonomous regions municipalities) across the
of volunteer system construction the Company systematically built
an employee volunteer support system through five dimensions: country cumulatively subsidized 45862 students from families in difficult situations more than 30000 students had completed
system rights empowerment incentives and platform laying a solid
foundation for sustainable and high-quality public welfare actions. high school education and continued their studies in universities and a total of RMB290 million in scholarships and grants had been issued.Employee Volunteer Support System
System guarantee
Provide paid volunteer leave for employees participating in long-term
public welfare projects such as “SF Lotus Education Aid Program” and “SFWarmth and Care Program” Main Developments of the Program in 2025
Rights guarantee
Economic Support: In 2025 3944 additional students received financial aid across 39 project counties. During the year the
Purchase accident insurance for volunteers participating in field visit
activities during the activity period provide support for centralized program partnered with 69 high schools and provided support to 11700 high school students disbursing approximately RMB25
accommodat ion costs dur ing the v is i ts and part ia l ly subsidize
transportation expenses during volunteer services million in grants. In addition 1645 university students participating in give-back activities were recognized and awarded scholarships
totaling RMB6.95 million.Empowerment and training Psychological and Health Support: For serious illness assistance total support amounted to RMB86000. In terms of collective
Provide systematic pre-job training for volunteers participating in activities and social support 36 Dream-Sharing Sessions were held reaching more than 3600 students at 47 project schools. For
to improve their personal abilities the Growth Summer Camp 95 accompanying teachers and 309 high school students from 38 project counties participated while 86
university student volunteers from the Give-Back Program provided volunteer services throughout the camp.Honors and commendations
Growth Empowerment: Throughout the year more than 1300 students participated in empowerment courses with total
Conduct annual evaluations for individual volunteers and volunteer
teams. Outstanding volunteers will receive administrative points from the
Company and outstanding volunteer teams will receive a RMB10000 learning hours exceeding 8500. A total of 13 Give-Back Talks were held featuring 43 alumni who shared their experiences.public welfare fund to support the continuous development of their
subsequent public welfare services Give-Back Connection: During the year more than 3600 additional university students joined the Give-Back Program and
a total of 115 activities were carried out. Through these activities 1895 participations by give-back students grew from “participants”
Platform construction into “cocreators” benefiting more than 7500 students in total.The SF Public Welfare Management Platform has been established
with over 50000 registered volunteers. It realizes functions such as
individual volunteer activity registration duration acquisition and activity
participation trace management
105SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
“Giving Back” Rural Summer Camp “Giving Back” Homecoming Meeting SF Liangshan Charity Class Program
With the core concept of “The countryside is my home” the “Giving Centered around the five core value of emotional connection The SF Liangshan Charity Class Program is a public welfareBack” Rural Summer Camp activity has built a diverse and interesting experience inheritance team cohesion ability improvement and program jointly launched by the SF Public Welfare Foundation and
course matrix covering a wide range of content such as outdoor influence expansion the “Giving Back” Homecoming Meeting as the Liangshan Mawei Development Center (the former Liangshan Yi
exploration creative handicrafts and scientific experiments. It the core carrier of the “Give-Back Program” builds a warm and Women and Children Development Center). It aims to provide warmth
breaks the limitations of traditional classrooms and subtly integrates solid “spiritual home” for students studying away from home through and hope for Liangshan’s orphaned children (referring to children
knowledge into game interactions and hands-on operations. immersive care and personalized support. In 2025 the project has who have lost one or both parents are in difficult living situations
Through immersive participation guidance and inspiring teaching established bases in 35 cities across 25 provinces and municipalities and have no one to rely on) and female high school students in
it creates a fulfilling and enjoyable summer growth experience for in the country operated 36 communities covering over 7500 people difficult situations. It is committed to improving the living conditions of
rural children. In 2025 138 college student volunteers returning to gradually building a widely connected and continuously growing Liangshan’s orphaned children helping female high school students
give back with enthusiasm went to 10 rural primary schools in 8 youth community. It has also launched the “City Exploration” series of in difficult situations overcome difficulties and complete their studies
provinces (autonomous regions) including Yunnan Guangxi Hunan activities for the first time with a total of 41 theme activities planned and providing them with equal educational opportunities and access
Henan Hebei Shaanxi Gansu and Shanxi. They accompanied and held attracting more than 1000 give-back students to actively to equal educational resources.
716 rural children through a summer full of laughter and warmth participate. It has transformed the slogan of “a home in a foreignwitnessed each other’s transformation with sincere companionship land” into a real and tangible companionship effectively alleviating
and professional guidance and practiced the pay-it-forward spirit the loneliness of students studying in other places significantly In 2025 the program provided support to 122 students in need
of “becoming the light after being illuminated” passing on love and enhancing their sense of belonging and identity and effectively
hope from generation to generation. promoting the vision of “turning a foreign land into a hometown” to with 114 students graduating from the program. As of the end of
take root. the reporting period it had cumulatively supported 1410 children
lacking parental care and disadvantaged female secondary school
students in Liangshan.“Giving Back” Rural Summer Camp Activity Give-Back Homecoming Meeting Theme Activity
106SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
SF Warmth and Care Program
The SF Warmth and Care – Children Medical Assistance Program
(hereinafter “SF Warmth and Care Program”) was launched in 2014. Warmth and care theme activity-Sharing happy times with child patients
After more than a decade of development it has now formed a
comprehensive program group with the coordinated development of
“a matrix of financial aid programs focusing on medical assistance”
(hereinafter “Medical Assistance”)” and “a matrix of growth-support In 2025 the SF Warmth and Care Program continued to adopt the During the summer vacation the program specially organized aprograms focusing on humanistic care” (hereinafter “Humanistic method of “standardized distribution of quarterly humanistic care “Shenzhen City Adventure Tour” for 5 children and their parentsCare”). The program adheres to the patient-centered approach with activity kits + multi-departmental collaboration at partner hospitals”. from Chayu Xizang. It led them to explore the city’s scenery andthe mission of “Protecting children’s health and achieving a beautiful A total of four phases of theme activities were carried out providing feel the humanistic temperature deeply implanting the seeds oflife”. It upholds the project development concept of high-quality heart-warming care theme activity services for 1586 in-hospital “striving for the better and being kind-hearted” in the children’s
warm and sustainable development and is committed to promoting children and their parents. The activities closely followed the life journey.the early detection early treatment and early recovery of children characteristics of festivals and the needs of children sharing the
in difficult situations aged 0-18 with relevant diseases helping the happy festival time with children and parents. This not only further
children grow healthily in both medical assistance and humanistic promoted the implementation of the goal of wide-coverage humanisticcare. At the same time it promotes the goal of “treating major care but also provided strong guarantee and support for the project-diseases within the province” and the development of the children’s cooperating hospitals in the work of humanistic care for children.medical industry.As of the end of 2025 the SF Warmth and Care Program
has cumulatively invested RMB518 mil l ion rescued over
26000 children with serious illnesses and orphans in difficult
situations and provided humanistic care services such as warm care
50000 Warmth and care theme activities “Shenzhen City Adventure Tour” for children from Xizanggrowth companionship and medical support to nearly
person-times of children their family members and medical staff.Disease screening-Linking high-quality medical resources to boost rural health revitalization
Main Developments of the Program in 2025
The SF Warmth and Care Program combined the methods of “jointly carrying out congenital heart disease screening with hospitals”
Stable Progress in Medical Assistance: During the year and “supporting hospitals to carry out congenital heart disease screening and establishing green channels”. It helped the program-
2100 cooperating hospitals to carry out in-depth disease screening rescue and follow-up work at the front line enabling children with more than children with serious illnesses and congenital heart disease in difficult situations to “be detected early treated early and recovered early”. At the same time it also
orphans in need newly received medical assistance with a contributed to the construction and development of relevant disciplines in hospitals.The Company in cooperation with the University of Hong Kong-Shenzhen Hospital continuously carried out the “SF Warmth and Care –total of RMB32.8 million invested in medical aid. Children’s Congenital Heart Disease Screening Rescue and Health Campaign” in Chayu Xizang Guilin Guangxi Qingyuan and
Expanded Coverage of Holistic Care: Through sub- Shantou Guangdong. A total of 2806 school-age children were screened and a long-term and sustainable green rescue channel for
programs such as Healing Spaces Care Packs themed screening and rescue was established. A total of 38 children with congenital heart disease in difficult situations were funded to complete the treatment and regain healthy hearts.care activities online follow-up visits offline engagement
disease screening and care for medical staff SF provided
holistic care services to more than 8300 child
patients family members and healthcare workers.Breakthroughs in Program Innovation: SF launched a
new education support initiative under the SF Warmth and
Care Program focusing on a critical stage in beneficiaries’
educational development. The initiative provided 91
previously assisted child patients with multidimensional
educational support including financial assistance and
ongoing companionship helping bridge the gap in post- SF Warmth and Care – Children’s Congenital Heart Disease Screening Rescue and Health Campaign
medical educat ional support and foster ing a more
integrated model of philanthropic assistance.
107SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Emergency Response and Disaster Relief
In the face of emergencies and natural disasters the Company has
always regarded serving society and ensuring people’s livelihood Helping each other in times of need and urgently rushing to the
as its responsibility. It actively participates in social disaster relief rescue of the fire in Tai Po Hong Kong
and emergency public welfare projects mobilizing the whole-
network emergency resources to support disaster relief at the
earliest opportunity. Relying on its own resource advantages and On November 26 2025 a serious fire broke out in Wang Fuk Court Tai Po Hong Kong causing heavy casualties and property losses. The
efficient organizational and deployment capabilities it continuously Company quickly activated the emergency response mechanism and donated HK$25 million immediately which was specially used for the
contributes its due strength to safeguard life and social security. medical assistance of the affected residents the guarantee of living materials and the post-disaster reconstruction work. Starting from the next day (November 27) the Company opened 146 SF stations in Hong Kong to provide free transportation services for rescue supplies
In 2025 in the face of sudden social and natural disasters such as fully ensuring the circulation of disaster-relief supplies. At the same time SF Hong Kong quickly formed a volunteer team to participate in
the fire in Tai Po Hong Kong the flood in Yuzhong Gansu and the rescue and assistance work at the front line practicing social responsibility and corporate responsibility with practical actions.heavy rains in many parts of the country the Company quickly
activated the emergency response mechanism urgently allocated
transportation resources and immediately cleared transportation
routes in the disaster-stricken areas. Relying on the disaster-
preparedness warehouses it efficiently completed the distribution
of multiple batches of emergency supplies and actively donated
supplies and funds to support post-disaster reconstruction. With its
professional capabilities and efficient response it provided strong
support for the emergency rescue and post-disaster recovery in the
disaster-stricken areas.SF donated a total of HK$25 million for the post-disaster relief of the fire in Tai Po Hong Kong
108SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Innovating the disaster preparedness model and digital disaster relief to improve the emergency response efficiency
At the end of 2024 the SF Public Welfare Foundation in cooperation withOne Foundation launched the “Emergency for Good-Frontline DisasterRelief Warehouse” project to explore a new model of joint disaster
preparedness. In 2025 the project established a disaster preparedness
warehouse radiating the north in Jinzhou Shijiazhuang and completed
the storage of 4000 transitional resettlement boxes and 3000 summer
care packages for children. This year the project responded to the floods
in Fuping County and Yixian County Baoding Hebei the floods in Miyun
District and Pinggu District Beijing and the flood in Yuzhong Gansu. A
total of 4535 pieces of disaster-relief supplies were delivered from the
warehouse with an expenditure of more than RMB2.4 million benefiting
16719 disaster-affected people.
In terms of the construction of disaster prevention and mitigationcapabilities the “SF Emergency for Good-SF Express & One FoundationSafe Community Station” project continued to advance. The expert
team carried out 10 emergency training sessions for 303 SF couriers
in 6 cities including Taiyuan Harbin Shijiazhuang Shenyang Dalian SF Emergency for Good – Frontline Disaster Relief Warehouse Transport supplies to support the disaster-stricken areas
and Zhengzhou around the training courses and supporting materials
improving the disaster response capabilities of frontline employees.In the post-flood recovery in Yuzhong Gansu Province the project innovatively implemented the “digital work-for-relief” model supporting environmental remediation and infrastructure repair in Xinglongshan Village
and Nanpowan Village in Chengguan Town Yuzhong County as well as Nanbeiguan Village and Liujiaying Village in Xiaokangying Township after the disaster. Relying on the digital care platform the project achieved
precise matching of labor demand and transparent distribution of funds. Villagers received labor remuneration while participating in the reconstruction of their hometown which not only ensured the efficiency and
transparency of relief but also conveyed the values of respect and empowerment. This model fully demonstrates the unique advantages of digital means in disaster relief and promotes the formation of a multi-party
collaborative and sustainable public welfare ecosystem.Five minute Golden Rescue Circle-AED Network Construction and Emergency Capacity Improvement
In 2025 the Company made significant progress in the field of social emergency rescue facility construction with a total investment of over
RMB1.54 million throughout the year continuously promoting the improvement of public emergency rescue capabilities.In terms of equipment deployment the Company has placed a total of 173 AEDs (Automated External Defibrillators) in Shenzhen with
130 installed in direct-operated branches and 43 equipped in operational vehicles. Meanwhile 5 AEDs were placed in Shanghai further
expanding the emergency rescue coverage network in key cities. In addition 2000 standardized medical kits were also allocated in
Shenzhen to provide basic support for frontline emergency response.In terms of personnel capacity building the Company has completed first-aid training for 1000 employees in Shenzhen and they have
obtained relevant certificates. In Shanghai 50 employees have also received training and obtained certificates initially forming a wide-
covering and rapidly responsive frontline emergency force.Relying on the deep-layout advantage of direct-operated branches the Company has organically integrated emergency rescue services
into the “capillaries” of the community effectively extending the reach of public safety. Currently all AED devices in Shenzhen’s branches
have been officially connected to Tencent’s city wide emergency rescue network system enabling real-time sharing of device locations and
coordinated dispatching which helps to build an intelligent and collaborative urban emergency response ecosystem.Employee first-aid training
109Services
Leading with Digital Intelligence to Connect the Globe
and Empower Overseas Expansion
The convergence of a new wave of technological and industrial
transformation is reshaping the global logistics and supply chain ecosystem
while mapping out a clear path for companies to embrace ESG principles
and pursue high-quality development. As an industry leader SF upholds the
philosophy of “creating value and embracing responsibility” embedding
sustainability across the entire service chain. In intelligent logistics the
Company drives innovation in big data the Internet of Things and large-
scale models to build an end-to-end digital and intelligent operating
system advancing the intelligent and green evolution its services. On the
international front the Company is seizing opportunities presented by the
restructuring of global industrial chains and the globalization of Chinese
enterprises strengthening resource allocation and network coverage to
deepen its strategic path of “the One in Asia with global reach.” At the same
time the Company remains steadfast in its commitment to high-quality
service – using standardization as a foundation and granularity to elevate
customer experience – while reinforcing delivery safety to harmonize quality
value and security contributing logistics strength to industrial upgrading
and social progress.● Pioneering Intelligent Logistics ● Providing Premium Services
● Empowering Global Expansion ● Safeguarding Delivery SecuritySF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Pioneering Intelligent Logistics
SF is committed to building a digital and intelligent supply chain ecosystem in the digital era and becoming a leader in smart supply chains. By
leveraging deep insights into supply chain scenarios and extensive industry experience and through continuous exploration and application of
cutting-edge technologies the Company enhances the efficiency of its internal logistics network while establishing best practices in digital and
intelligent logistics and supply chain management for its clients.Technological Innovation
Technological innovation serves as the core driver of the Company’s business upgrades and efficiency improvements. In response to the
complex and ever-changing operational challenges of the logistics industry the Company views technological innovation as the key to addressing
these challenges. By extensively applying cutting-edge digital technologies the Company is driving a transformation across the entire logistics
chain from experience-driven to data-driven operations fully integrating intelligent capabilities into every operational stage including pickup
transshipment and delivery. The deep integration of technological innovation with business scenarios not only helps optimize the operational cost
structure and improve resource utilization efficiency but also further unlocks business growth potential and enhances market competitiveness
achieving a dual improvement in both profitability and operational efficiency.Governance
The Company has incorporated digital intelligent logistics solutions and technological innovation into its core development strategy placing
great emphasis on the leading role of technological innovation in driving high-quality development. The Company has established a governance
framework for technological innovation providing robust support for innovative development through centralized management by specialized
governance bodies. At the top-level design stage guided by the strategic decisions of the Board Strategy Committee and centered on the
corporate vision of “to be the well-respected and the world’s leading digital intelligence logistics solution provider.” the Company has established a
digital and intelligent-driven strategic direction. By seizing the opportunities presented by the new wave of technological revolution the Company
is driving the upgrading of logistics and supply chain services. At the organizational execution level the Chief Information Officer leads the
establishment of a specialized technology governance framework. The Technology Department at headquarters has established an Architecture
Committee responsible for addressing common architectural issues and managing technology domains. This committee drives system architecture
upgrades across all business domains and builds a cross-organizational team of technical experts to collaborate on co-creation. By developing
industry-leading R&D and architecture management capabilities the Company provides robust technical support for the realization of its vision.The Company continues to refine its innovation management system combining online innovation platforms with offline innovation activities
to drive the efficient translation of innovation outcomes. In 2025 the Company focused on improving the quality of innovation projects. In
collaboration with professional committees it refined the definitions of innovation across specialized fields standardized innovation terminology
established tiered criteria for innovation definitions strictly controlled quality and promoted the widespread adoption and reuse of best practices.SF Innovation Framework
Innovation Innovation Innovation Innovation
Cultivation Generation Implementation Value
Innovation Workshop Innovation Lab Innovation Sandbox
Introducing innovative Conduct team brainstorming to develop Unlocking the value of
t h i n k i n g a n d t o o l s innovative solutions for business or technical innovation replication
developing innovation pain points and challenges. to reduce costs and
capability stimulating improve efficiency for
creative thinking and the Company.master ing innovat ion Showcasing innovative tools methods and
tools or methods. technical solutions that are small yet effective
in daily operations.
111SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Strategy Impac t R i sk and Oppor tun i t y
The Company is consistently committed to driving supply chain innovation through digital and intelligent technologies aiming to build a more resilient Management
efficient and cost-effective global supply chain logistics system and to facilitate the optimal allocation of global network resources. The Company has
established a dual-driven innovation system underpinned by “cutting-edge technological innovation” and “industry-specific solution innovation.” In the As the process of digital and intelligent upgrading
dimension of cutting-edge technology the Company continuously integrates technologies such as big data Artificial Intelligence (AI) large models digital accelerates across sectors customer demand for
twins and intelligent unmanned equipment into the entire supply chain process – including global logistics network construction warehousing pickup digital and intelligent logistics solutions is growing.and delivery transfer and transportation – applying industrial-grade standards to ensures optimal overall coordination and efficiency improvements from Driven by technological innovation the logist ics
individual nodes to the entire network. In the dimension of industry solutions based on a profound understanding of the characteristics and demands of industry is evolving toward greater intelligence and
supply chains across various industries the Company provides first-class digital and intelligent industry solutions to its clients thereby meeting diverse efficiency. Leveraging its longstanding expertise in
market needs. The Company remains committed to strengthening its technology reserves and continuously optimizes its innovation mechanisms. With a logistics and forward-looking deployment of cutting-
forward-looking technology strategy it seizes new opportunities arising from industry transformation to drive the digital and intelligent transformation of edge technologies the Company seizes development
the logistics and supply chain sector. opportunities arising from technological innovation. It
continuously enhances logistics network operational
The Company fully recognizes that while the deepening advancement of digital and intelligent transformation reshapes business models and enhances efficiency through technological innovation thereby
operational efficiency it also brings new risks such as technological iteration uncertainty data security and technology ethics. To ensure the steady improving overall logistics service quality and customer
implementation of its strategy the Company systematically identifies potential risks and strategic opportunities within the digitalization process and has experience. Simultaneously the Company actively
established a comprehensive assessment and analysis mechanism. expands i ts serv ice boundar ies deepening the
integrated application of technology within supply chain
Risk/Opportunity Type Time Range Potential Financial Impact Response Measures
scenarios across various industries and empowers
industrial development with its digital and intelligent
Technology empowers SF’s logistics operations. Through The Company deepens the application of intelligent technologies in scenarios capabilities.efficient logistics decision-making transportation such as marketing sales customer service sorting transportation pickup
route optimization and sorting center simulation the and delivery international operations and supply chain management to The Company closely monitors internal and external
Technology Company can reduce various costs including those drive the dynamic optimal allocation of resources across the entire chain and
Enhances Short-term associated with trunk-line transportation sorting and to build a new type of organization comprising multiple intelligent agents and
policy shifts technological iteration trends and the
Efficiency Medium- compensation for timeliness delays. The implementation human employees.development needs of the logistics industry. Grounded
Across the term of unmanned technologies also enhances operational The Company enhances the deployment of automation and unmanned in its position as a comprehensive logistics service Logistics efficiency in transfer warehousing and transportation technologies across all links including sorting warehousing and
Chain thereby reducing labor and transportation costs. As the transportation as well as in logistics scenarios for various industries to provider it defines clear directions for technological
adoption rate of intelligent agents increases the level of promote the efficient operation of its network. innovation. It systematically identif ies innovation
operational intelligence will rise significantly improving For more details regarding technology applications please refer to the chapter entry points across the entire cycle of research and
both cost-effectiveness and revenue quality. “Services – Pioneering Intelligent Logistics – Technology Applications.” development (R&D) transformation and application
Opportunity Leveraging the Company’s extensive experience The Company redefines the paradigm for supply chain consulting and with a focus on exploring potential opportunities inand profound understanding of supply chain services planning services by developing a tripartite solution integrating “Consultation areas such as logistics large models intelligent agentsacross multiple industries combined with cutting-edge & Diagnosis + AI Empowerment + Full-Link Digitalization”. It combines SF’s automation and unmanned systems. This approach
technological capabilities such as AI large models and big rich industry experience with its “Fengzhi” large model and “Fengzhiyun”
Build Leading data the Company provide its clients with comprehensive system products and solutions to offer enterprises end-to-end closed-loop forms innovation pathways aligned with the entire
Digital and Medium- digital and intelligent supply chain solutions. This services spanning from top-level design to implementation. logistics chain driving the sustainable and high-quality
Intelligent term enhances client stickiness and deepens cooperation The Company builds a digital supply chain platform characterized development of the logistics industry.Logistics Long-term thereby driving revenue growth for the Company’s supply by “industry-specific customization” “digital and intelligence” and
Solutions chain-related businesses. Furthermore by capitalizing “internationalization.” This platform assists enterprises across sectors in
on the Company’s global logistics network it extends establishing a competitive global supply chain layout and in meeting their While identifying major opportunities in technological
these technological capabilities to empower enterprises supply chain fulfillment requirements both efficiently and to a high standard. innovation the Company also implements multiple
in their overseas expansion promoting the growth of For more details on digital intelligent logistics solutions please refer to the measures to mitigate associated risks. For instance
international business revenues. section “Services – Pioneering Intelligent Logistics – Technology Empowerment.” regarding the protection of technological intellectual
Compliance Affected by the external network security environment SF has established a comprehensive mechanism to safeguard information property it has established a rigorous and standardized
risks related and the differences in data compliance policies across security and cybersecurity and has obtained certification for both the ISO 27001 management system implementing scientif ic and
to network Short-term countries any violation or cyberattack would directly Information Security Management System and the ISO 27701 Privacy Information incur additional costs such as fines and risk mitigation. Management System. effective hierarchical classified and differentiated security and
data leakage Customer attrition could further lead to revenue declines For more information regarding information security compliance please refer to
management while raising awareness of innovation
and profit fluctuations. the chapter “Governance – Ensuring Information Security.” protection through training. In terms of data security
Given the Company’s extensive business network The Company embeds the principles of responsible AI into its technology
risk prevention and control the Company regularly
coverage and highly diverse operational scenarios the R&D business operations and value-creation processes. It has established conducts data securi ty audits network securi ty Risks
Risks application of AI technology across the entire logistics a Big Data and Algorithm Sub-committee as a dedicated body for algorithm vulnerability assessments and practical emergencyrelated to chain entails risks of model failures and decision-making security governance and has formulated regulations including the Medium- “Administrative Measures for the Security of Application Recommendation drills continuously refining its emergency response AI decision- term deviations stemming from uncertainties in technological mechanisms for information and network security making Long-term iteration. Should such risk events materialize they wouldAlgorithms” and the “AI Security and Compliance Management Standards.”
dependence directly increase operational costs related to model These documents define the security and compliance baselines that product incidents. Concerning technology ethics the Company
and ethics optimization and risk mitigation. Concurrently this could development and research operations must adhere to during algorithm has set up a dedicated body to oversee algorithm
lead to diminished customer stickiness and reduced design and the application of artificial intelligence and large models.revenue thereby impacting the Company’s profitability. For more details on technology ethics please refer to the section “Services –security governance and embeds the principles ofPioneering Intelligent Logistics – Technology Ethics.” responsible AI into its technology R&D business
operations and value-creation processes.
112SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Metrics and Targets
The Company consistently places technological innovation at the core of its development The Company is committed to deeply integrating patented technologies with its core business scenarios ensuring
strategy attaching importance to R&D investment and tackling key technical challenges technology implementation serves business development needs. As of the end of the reporting period the Company held
thereby maintaining a strong level of R&D expenditure. It continues to deepen its 4315 patents (both in force and under application) and 2551 software copyrights. Invention patents accounted for 66.1%
expertise in technologies such as artificial intelligence big data and operations research of the total patent portfolio demonstrating the continued prominence of its core technological innovation strength and the
optimization using technological innovation to empower business growth support the effectiveness of its achievement transformation. In 2025 the Company applied 853 invention patents to its main business
high-quality upgrading of logistics services and simultaneously advance green low- operations. Throughout the year it filed 338 new invention patent applications and was granted 221 invention patents.carbon operations. Looking ahead the Company will persistently enhance its independent
innovation capabilities and core technological competitiveness. It aims to achieve more With its technological innovation capabilities continuing to strengthen the Company expects to file at least 200
landmark innovations in fields like intelligent logistics and digital supply chains secure new invention patent applications in 2026. It is also committed to expanding its overseas patent portfolio extending
more authoritative industry national and international technology awards and build long- technological innovation and achievement protection to overseas regions to support the development of its international
term advantages for the enterprise through technological leadership. business.In 2025 the Company became the sole Chinese enterprise to receive the Franz Edelman
Award (Finalist) for its “SF Logistics Network Planning Intelligent Solution” project. This
project achieves global optimization of large-scale logistics networks by integrating an Proportion of the number of invention patents Number of invention patents applied to the main business
efficient iterative solution algorithm with a significantly streamlined mathematical model
effectively resolving complex network planning challenges. Since 2018 the project has 66.1% 853
cumulatively enhanced the timeliness performance of more than one billion parcels while
contributing to significant carbon emission reductions delivering synergistic improvements
in both economic and environmental benefits. This demonstrates international recognition
for SF’s application of operations research and the value delivered by the project. The research and large-scale application
project on collaborative decision-makingtechnology featuring an “Expert Agent + The “Intelligent Logistics Planning andVertical Domain AI Model” for logistics Decision-making Platform” was honored
ne tworks rece ived the Sc ience and with the 2025 Red Dot Design Award by
Technology Achievement Award (Third Prize) the German Design Association.from the China Computer Federation (CCF).SF Technology is certified as a SF Technology was named to the Fortune
“National High-tech Enterprise”. China Top 50 Technology Companies (2025) list.The “SF Baichuan WES System – A Global Digital Intelligent AutomatedWarehousing Platform” secured First Place in Smart Warehousing and Logistics
Technology and won the Gold Award at the Logistics and Transportation Key
Technology Innovation Competition from the China Communications and
Transportation Association.Franz Edelman Award (Finalist)The case study titled “‘SF Intelligent Cloud The “Innovative Practical Application CaseStrategy’ and ‘SF intelligent Cloud Tower’ of an Automated Processing Center forSystems Facilitate Digital Intelligence Optical Eyewear Industry Warehousing” was* Note: The Franz Edelman Award is presented by INFORMS (Institute for Operations Research Upgrading of the Fresh Food Industry Supply shortlisted for the “2025 Innovative Practicaland the Management Sciences) the world’s largest professional association for operations Chain” was shortlisted for the “2025 Digital Application Cases of Enterprises in the Intelligence Application Cases of Enterprises inresearch artificial intelligence analytics and data science. It is the highest honor in the global Logistics Industry and Supply Chain Field” the Logistics Industry and Supply Chain Field”operations research and management science community and is often regarded as the “Nobel by China Logistics & Purchasing magazine.by China Logistics & Purchasing magazine.Prize of Industrial Engineering.” As an award of immense global influence its selection results
are also considered a bellwether for worldwide technology development trends.
113SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Technology Applications
By integrating artificial intelligence big data operations research and
digital twin technologies the Company has established the digital
and intelligent infrastructure and central intelligence platform for the
entire SF Group globally positioning itself as the go-to partner for
customers’ digital supply chain transformation. Fulfillment agents dynamically forecast parcel arrival times and proactively address risks such as traffic congestion or flight delays. In cases of
Dispatch flight disruption the system generates alternative solutions such as air-to-air or land-to-air transfers within seconds evaluating timeliness cost
Deep Integration of Intelligent Technologies: and weather risk alleviating manual coordination complexity and ensuring service reliability.AI Empowering End-to-End Internal Operations
The SF large-model system integrates three core elements – big
data algorithms and computing power – into a cohesive framework
tailored to SF’s operational scenarios enabling cross-businesscollaboration and a closed-loop “perception-decision-execution-optimization” mechanism. Built on efficient computing architecture
and general-purpose foundation models the Company has developed Through image video and operational data analysis the system automatically identifies anomalies and optimization opportunities. AI detects
multi-agent clusters serving the logistics domain possessing superior Transit packaging and label issues replacing manual inspection processes and improving abnormal parcel handling efficiency. Intelligent site inspections
understanding of logistics and supply chain operations. These enhance transit efficiency and digital management. These technologies have been deployed across more than 200 sorting centers nationwide.agents have been deployed in over 30 internal business scenarios
continuously driving intelligent upgrades.As of the end of 2025 the SF large-model platform recorded average
daily token consumption of over 10 billion. The number of intelligent
agents across various categories grew rapidly exceeding 5000 in The Company has developed an “AI Digital Companion” tailored for frontline couriers comprehensively enhancing service quality and operational
total. The scale and depth of large-model R&D applications continue efficiency at the last-mile stage. Prior to employees’ on-boarding AI-powered scenario-based simulations are used to strengthen couriers’
to grow rapidly. Pickup practical competence in pickup and delivery procedures customer services and business development. During daily operations the AI Courier
and Service Center provides real-time responses to business inquiries and waybill tracking requests supporting voice interaction and recording tens
Delivery of thousands of daily invocations on average. In addition by leveraging an AI-driven proactive outbound calling mechanism to automatically
issues service reminders the system significantly reduces the workload of service outlets managers in monitoring shipment timeliness. This
mechanism effectively mitigates the risk of delayed deliveries and safeguards precise time-definite service commitments.AI technologies are driving the intelligent upgrade of the Company’s international order placement and customs clearance processes. At the
order placement stage AI-enabled systems automatically assess whether declared items comply with applicable customs requirements and
provide end-to-end guided prompts to customers throughout the submission process thereby supporting incremental revenue growth. At the
customs declaration stage the Company has addressed longstanding industry pain points – including limited multilingual support lagging rule
International adaptation the complexity and high error rate associated with HS code classification prolonged customs inspection cycles and low manual
Business review efficiency – by launching a suite of intelligent solutions including “Smart Commodity Classification Filing” “AI High-ResolutionInspection” and “AI-Assisted Document Review.” These capabilities enable the precise identification of potential risks in customs declarations.Leveraging large foundation models the system also standardizes and streamlines product descriptions into concise and compliant declaration
names. In the global cross-border HS classification process the Company utilizes its proprietary customs classification and declaration element
recognition models to support intelligent product categorization across 31 countries achieving a high accuracy rate of 93%.
114SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Accelerating Unmanned Technology Deployment to Reduce Logistics Costs while Optimizing Efficiency
The Company continues to explore the deployment of automation and unmanned technologies across various logistics scenarios supporting the transformation of its operating model and enabling efficient network
operations.Transit Warehousing
In 2025 the Company further strengthened its transit capabilities by Leveraging its proprietary Baichuan Digital Supply Chain Platform the Company has developed a flexible intelligent and data-driven automated
deploying approximately 580 additional sets of automated sorting warehousing solution. The system features configurable rule engines and process architectures supports integration with mainstream automation
equipment significantly enhancing automation levels across both equipment and enables end-to-end automation management across operational nodes. Through a modular workflow engine and intelligent task
small-parcel and bulky-item facilities. At the same time the Company orchestration the platform ensures stable high-efficiency warehouse operations at scale. In addition the Company has standardized its single-
independently developed and introduced multiple categories of warehouse automation implementation experience into a replicable model enabling the “one standard multi-warehouse deployment” approach to
unmanned equipment to improve handling and sorting efficiency accelerate network-wide rollout.within sorting centers.Currently the Company has successfully developed multiple large-scale automated high-bay warehouses and process-automation facilities across
Flat-Item Sorting Machine various industries delivering integrated digitalized and automated warehousing solutions for leading enterprise customers.By integrating computer vision with intelligent induction and Bin-Type Automated Storage and Retrieval System (AS/RS)
distribution technologies this equipment enables high-speed
automated identification of flat envelopes and small parcels
facilitating efficient three-dimensional sorting. Each unit currently Utilizing standardized totes as storage units the bin-type AS/RS enables high-density storage and fully automated retrieval operations.achieves an operating efficiency of over 4000 pieces per hour with The system can be integrated with tote-handling robots shuttle carriers and high-speed climbing robots to support flexible and efficient
a mis-sorting rate of less than 0.01% delivering both speed and material movement. This solution has been widely adopted by customers in sectors such as consumer goods and apparel and footwear
accuracy at scale. delivering scalable automation and enhanced operational precision.AGV Robots Rack-Based Automated Storage System
Comprising ultra-high-density racking structures integrated with latent-type AGVs this solution achieves exceptional space utilization
The Company has extensively deployed AGVs in transshipment and is particularly suited for small-sized item storage. In collaboration with a leading international optical eyewear manufacturer the
operations employing high-precision SLAM navigation technology. Company established a strategic demonstration facility featuring multi-tiered refined inventory management container-level tracking and
These AGVs operate autonomously without manual intervention full-chain traceability capabilities. The system enables real-time inventory visibility and granular management supports automated
completing parcel handling and loading/unloading tasks piece-level picking of ultra-small components such as lenses and facilitates precision processing and assembly. As a result the facility
automatically. Leveraging multi-robot collaborative scheduling is capable of dispatching tens of thousands of lenses per day with an accuracy rate exceeding 99%.algorithms and dispatch mechanisms the system enables
intelligent coordination among multiple AGVs while dynamic
warehouse zoning management allows flexible response to peak “Lightning Sort” Intelligent Put-Wall System
demand periods and ensures high site utilization. End-to-end
route tracing technology generates digital footprints for each task
enhancing operational transparency and management visibility. As a three-dimensional intelligent put-wall sorting solution the system combines automatic barcode scanning and intelligent task
Currently the Company has deployed over a thousand AGVs with dispatch to enable rapid and precise sorting of multiple orders. It supports flexible configuration across eight inbound and outbound
daily handling capacity reaching nearly ten million shipments. scenarios accommodating diverse frontline operational requirements. Compared with purely manual put-wall operations sorting
efficiency is improved by 50% to 300% significantly enhancing throughput capacity.Autonomous Mobile Robots (AMR)
The Company has deployed AMR robots across multi-zone picking environments equipped with autonomous path-planning capabilities
that enable flexible material handling and intelligent flow management in dynamic and complex settings. Through intelligent task
decomposition and route optimization algorithms the system minimizes congestion at picking points and enhances overall efficiency.Compared with manual picking operations AMR-assisted picking efficiency is improved by 30%.Transportation
The Company has achieved large-scale multi-scenario deployment of autonomous delivery vehicles with applications spanning short-haul
transportation short-distance shuttling intra-site transfers campus and commercial district distribution as well as customized customer solutions.As of December 2025 the Company had deployed nearly 3000 autonomous vehicles across more than 130 cities nationwide. Leveraging a
unified autonomous vehicle service and monitoring platform the Company has established centralized dispatching and intelligent management
capabilities covering multiple vendors and vehicle models continuously improving the operation quality and efficiency of unmanned vehicles.
115SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Technology Empowerment
Digital and intelligent logistics solutions constitute a core pillar of the Intelligent Supply Chain Decision-Making Efficient Localized Overseas Operations
Company’s vision representing both a key strategic direction and the
fundamental embodiment of its core competitiveness. Leveraging its The Company has established a deep strategic partnership with a leading When expanding into overseas markets a well-known designer toy
directly-operated model which generates extensive multi-scenario end- international retail food brand extending its service scope upstream into brand sought to replicate its domestic warehousing and supply chain
to-end data across diverse industries spanning both production and the client’s manufacturing operations by optimizing factory production management model abroad with a view to minimizing the learning curve
consumer sectors together with industry-leading logistics technology scheduling through intelligent planning solutions. and adaptation costs for its overseas teams while retaining the flexibility
applications the Company has established a distinctive first-mover to respond to order volume spikes at controllable cost.Operating in a high-turnover market environment the client confronted
advantage and is committed to delivering leading digital and intelligent three primary challenges: short product shelf life constraints complex In response the Company’s Baichuan Digitalized Supply Chain Platform
supply chain solutions to its clients. processing requirements and frequent fluctuations in end-market was deployed overseas in a manner fully compliant with local laws
demand. The client’s traditional production scheduling model – largely regulatory requirements and cultural considerations while preserving to
Supply Chain Consulting and Planning dependent on manual experience and rule-based logic – was no longer the greatest extent possible the client’s established domestic fulfillment capable of responding swiftly to dynamic changes. This resulted in standards and operating practices. This approach enabled the rapid
The Company has comprehensively innovated its supply chain consulting elevated production line operating costs underutilized short-cycle localization and seamless implementation of the client’s overseas
and planning service model establishing an integrated “Consultative capacity and misalignment between material supply and manufacturing operations. Given the brand’s distinctive “flash sale” characteristicsDiagnostics + AI Empowerment + End-to-End Digitalization” solution demand. under which order volumes may surge dramatically within short periods
framework. By combining its deep-rooted logistics and supply chain the Company designed and implemented a highly automated intelligent To address these challenges the Company leveraged its proprietary
expertise with the “Fengzhi” large language model and the “Fengzhi warehouse solution. The facility integrates multi-level bin robots flexible supply chain optimization algorithms to develop an integrated productionCloud” system product suite the Company delivers closed-loop workstations and electronic label sorting walls significantly enhancing planning and optimization platform covering procurement manufacturing operational efficiency. The core picking zone requires only four personnel
end-to-end services ranging from top-level design to on-the-ground logistics sales and after-sales service. The platform enables optimized to operate while supporting peak outbound volumes of nearly 10000
implementation. This approach enables enterprise-wide supply chain resource allocation across production and procurement functions while orders per day thereby ensuring efficient scalable and cost-effective
planning coordination and integrated fulfillment digitalization capabilities. supporting intelligent workforce scheduling at the operational level. fulfillment under high-demand scenarios.The Company’s consulting and digital enablement solutions have been As a result the solution significantly improved order fulfillment rates reduced production line changeover time lowered manufacturing costs End-to-End Coordination of Forward and Reverse Logistics
successfully deployed across multiple sectors including consumer and enhanced the velocity of material turnover. Through this end-to-
goods chain retail high-end components and telecommunications The apparel and footwear industry represents a substantial market end intelligent optimization framework the Company enabled the client
and digital products. These solutions cover core scenarios such as segment. Driven by the rapid proliferation of e-commerce livestreaming to achieve leaner operations and more agile demand-driven production
intelligent logistics network planning logistics planning collaboration and other emerging retail formats the sector increasingly faces operational management.dynamic optimization of warehousing and distribution networks and challenges including rapid SKU proliferation pronounced seasonality elevated return rates and highly fragmented omni-channel order flows.integrated execution of logistics and supply chain operations. The End-to-End Cross-Border Supply Chain Visibility Traditional warehousing models which rely heavily on manual sorting are
services further extend to broader strategic requirements including
industrial chain collaboration overseas expansion and localization Taking as an example the expansion of 3C manufacturing capacity into
constrained by limited daily processing capacity and relatively high mis-
Vietnam leading enterprises within the value chain often face a highly shipment rates while labor costs rise significantly during peak seasons – strategies for multinational enterprises operating in China. Through this collectively undermining enterprises’ competitiveness in an increasingly
comprehensive framework the Company provides actionable advisory complex supply chain landscape characterized by a large number of component suppliers extensive SKU portfolios and inconsistent product dynamic market.and implementation services that drive digital transformation operational
efficiency optimization and supply chain resilience enhancement. coding and specification standards. During cross-border circulation To address these structural pain points the Company implemented upstream raw material suppliers typically arrange transportation and a three-pronged innovation framework comprising the deployment
For example a leading global consumer electronics ODM enterprise warehousing independently across China and Vietnam resulting in of advanced automation equipment the application of RFID-based fragmented resource allocation elevated coordination costs reduced
faced the challenge of managing a highly complex supply chain traceability and light-directed sorting technologies and the development supply chain flexibility and increased management and monitoring
network comprising dozens of production bases worldwide and of an “intelligent unified inventory” collaborative platform. This integrated complexity. solution not only reduced labor requirements by 60% but also lowered
thousands of suppliers. The client’s material flows were intricate and
Following integration with the Company’s proprietary Baichuan Digitalized mis-delivery rates by 98% and decreased slow-moving inventory by 35%. demand forecasting posed significant difficulty. Although the client had
implemented information systems across various business scenarios Supply Chain Platform the client is only required to consolidate
Through the coordinated application of RFID and robotic technologies
the Company enabled the apparel and footwear supply chain to achieve
pronounced data silos fragmented process connectivity and delayed components at the Company’s designated consolidation warehouse in
decision-making hindered operational efficiency extended delivery cycles China. Thereafter the entire process – including domestic transportation
“zero mismatch accelerated inventory turnover and lean operations”
thereby supporting industry-wide operational upgrading and sustainable
and elevated costs. customs declaration and clearance cross-border transportation in-country distribution in Vietnam and inbound handling at overseas value creation.In response the Company designed a tailored consulting and system warehouses – is seamlessly managed under the Company’s integrated
optimization solution focusing on the full supply chain lifecycle across the end-to-end service framework. Throughout this process the Company provides comprehensive logistics visibility and real-time order routing
client’s China-Vietnam network encompassing planning procurement traceability. Leveraging its digitalized systems the Company further
logistics production delivery and settlement. By iteratively upgrading enables flexible cross-border land transportation scheduling and
digital systems such as WMS TMS BMS and SRM the Company standardized warehouse operations materially enhancing supply chain
constructed a logistics management framework optimized for maximum agility and process stability.efficiency and cost effectiveness. This holistic transformation significantly
improved inventory health strengthened operational coordination and This model substantially reduces the management burden associated
enhanced end-customer satisfaction. with multi-country coordination for lead enterprises enabling transparent end-to-end international supply chain control and efficient execution. As a
result overall supply chain quality and responsiveness are systematically
improved strengthening the client’s global operational resilience.
116SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Technology Ethics
The Company places high importance on the compliance security and sustainability of AI technology applications. It comprehensively integrates the principles of responsible AI into its technology R&D business
operations and value-creation processes. While pursuing technological innovation and efficiency gains the Company positions data security privacy protection and technology ethics at the core of its technology innovation
management. As the sophistication of its self-developed technologies advances SF has concurrently strengthened its compliance management framework for the development and application of large models ensuring that
technological progress consistently adheres to principles of scientific rigor rationality and respect.To strictly adhere to the requirements of laws regulations and technology ethics norms – including the Personal Information Protection Law of the People’s Republic of China the Data Security Law of the People’s
Republic of China the Interim Measures for the Review of Technology Ethics and the Ethical Norms for New-Generation Artificial Intelligence – and to effectively manage compliance risks associated with the large-scale
application of emerging technologies such as algorithms AI and large models the Company has formulated two regulatory documents: the Measures for the Safety Management of Application Recommendation Algorithms
and the AI Safety and Compliance Management Standards. These documents define the safety and compliance baselines that product development and research operations must adhere to during algorithm design and the
application of AI and large models fostering the synergistic development of technological innovation and compliance management. In 2025 the Company did not experience any incidents that violated technology ethics
principles.Technology Ethics Governance Structure
In 2025 the Company established a Big Data and Algorithm Sub-committee as a dedicated body for algorithm security governance. Chaired by senior leadership this sub-committee is responsible for analyzing judging
and making decisions on major algorithm security risks and coordinating top-level resource support. A Secretariat Working Group operates under it to coordinate daily algorithm security management. Its membership
encompasses all core departments involved in AI technology R&D and application ensuring cross-functional collaboration and efficient operation.Technology Ethics Commitment
The Company commits to strictly adhering to the following principles in technology development and application:
Principle One Principle Two Principle Three Principle Four
Data Privacy Protection System Security Assurance Bias Mitigation Content Traceability
Adopt data minimization de-identification Conduct regular network security vulnerability Strictly manage data selection algorithm Develop and implement t rusted content
anonymization and encryption to safeguard assessments and red team-blue team drills design and model optimization processes traceability and verification methods (such
user privacy. to identify and address vulnerabilities in a identifying and mitigating bias risks through as watermarking) to help users ident i fy
timely manner ensuring lifecycle integrity and systematic evaluation and testing to ensure AI-generated content enhancing trust and
stability. fairness and transparency. traceability.Responsible Artificial Intelligence
The Company places strong emphasis on AI compliance governance having established a governance system that covers the entire lifecycle of algorithm R&D data flow and scenario application. By putting in place
mechanisms for algorithm filing content identification and security safeguards it systematically ensures the fairness traceability and security of AI applications. This reinforces the compliance baseline for technology for
good and honors its commitment to responsible AI governance.Access Assessment Filing Review Hierarchical and AI Security and Categorical Control Compliance Training
The Company has established a pre-security The Company has put in place a compliance The Company has put in place a control system The Company shares AI regulatory updates
access procedure for the procurement or assessment process for project application filings. covering the entire lifecycle of AI models and and security and compliance requirements to all
introduction of AI-related technologies and It conducts compliance reviews for proposed AI applications. This system applies hierarchical employees through various channels including
datasets. It developed the AI Procurement/ projects including algorithm transparency and the categorical and label-based management to AI course development online sharing sessions
Introduction Capability Assessment Form to legality of data usage to ensure projects proceed models and applications. Risk levels are assigned live broadcasts and internal communications. It
conduct systematic security assessments and on a foundation of technical feasibility and ethical based on factors such as application scenario also provides specialized training for AI product
compliance reviews across dimensions such as compliance. data sensitivity and scope of impact enabling development and research teams to enhance their
technology source data compliance algorithmic differentiated control measures. AI security compliance awareness and capabilities.bias and privacy protection ensuring that risks at
the introduction stage are manageable.
117SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Strengthening Access Control for Sensitive AI Functions
The Company has established a four-tier coordinated mechanism covering permission control real-time monitoring data protection and organizational responsibility. This mechanism sets clear security boundaries for
sensitive AI functions such as facial recognition and surveillance technologies enabling the systematic management of various application risks.Permission Control Real-time Monitoring Data Protection Organizational Responsibility
Applies the principle of least privilege to Implements an end-to-end real-time audit During the training data collection phase Defines a clear system of accountable
sensit ive AI functions enabling access mechanism to conduct real-time security harmful or illegal content is strictly filtered persons for safety management alongside
control via dynamic permission configuration detection and block non-compliant activity and personal information is processed dedicated emergency response plans that
to prevent unauthorized access. in AI interactions. It has also established a using de-identification and anonymization are regularly exercised. Forms a closed-loopfull-process operational log repository. Through techniques. Performs model safety alignment mechanism of “Technical Detection – Manualperiodic audits that analyze anomalous patterns via Reinforcement Learning from Human Handling – Process Review” to enable a
(e.g. high-frequency abnormal calls) this Feedback (RLHF) endowing AI with the response to security incidents within minutes.system ensures the traceability of operational intrinsic capability to reject non-compliant
behaviors and enables risk early warning. instructions.Standardizing the Identification of AI-Generated Content and Decisions
The Company has established a full-process control mechanism of “Pre-Notification → In-Process Marking → Post-Optimization.” This mechanism clearly identifies AI-generated content and AI-driven decision results
reinforcing the foundation of trust in human-machine collaboration and effectively protecting users’ right to know.Pre-Notification In-Process Marking Post-Optimization
At the initial stage of user interaction the service is explicitly Clear and distinguishable labels are uniformly applied to Continuously collects user feedback to dynamically optimize the
communicated as AI-driven ensuring users have a clear AI-generated text decision results and image content. presentation of these labels ensuring users can accurately identify
understanding of the service nature. AI services and that their right to know is fully safeguarded.Establishing a Model Performance Monitoring and Correction MechanismTo address issues such as performance degradation and drift that may arise during AI model operation the Company has established a full-process management mechanism of “Proactive Monitoring → Precise Diagnosis→ Tiered Intervention → Knowledge Loop.” This ensures the long-term stable and reliable operation of AI systems.Proactive Monitoring Precise Diagnosis Tiered Intervention Knowledge Loop
The Company has established a mult i- The Company initiates a combined data Based on diagnostic results the Company The Company documents the processed
dimensional metric tracking and real-time and model diagnostic procedure. Through implements tiered responses. For minor data d iagnost ic processes correct ive
monitoring system. By setting KPI thresholds data distribution analysis and A/B testing per fo rmance f luc tua t ions i t per fo rms measures and final outcomes then feeds
this system automatically detects abnormal it accurately pinpoints the root causes of rapid parameter calibration. New model this information back into model training and
fluctuations and triggers alerts enabling the performance degradation providing a basis versions are first trialed on a small scale; if evaluation. This constructs a self-reinforcing
continuous tracking and timely intervention for corrective measures. performance is unsatisfactory the Company loop of “Monitor – Intervene – Learn”
of model performance. immediately reverts to the stable version to continuously enhancing the reliability of AI
ensure service continuity. services.
118SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Algorithm Fairness Governance and Bias Prevention Framework Establishing a Full-Process Appeal Mechanism
The Company has established a bias prevention system that spans the entire lifecycle of data governance model training and application The Company has established a full-process appeal managementdeployment. Through the coordinated interplay of data governance algorithmic safeguards and continuous monitoring this system systematically mechanism covering “Appeal Submission Investigation and Handlingmitigates discrimination risks in artificial intelligence applications ensuring the social fairness of its technological services. Result Feedback and System Improvement.” This mechanism
safeguards the rights of users and affected third parties to challenge
AI-driven decisions or outcomes ensuring that such challenges are
Multi-dimensional Fairness Verification: The Company implements multi-dimensional fairness verification during the data collection and handled and feedback is provided in a timely and impartial manner.Data Source annotation stage requiring that training data covers diverse user groups across different regions ages occupations and other dimensions.Governance Cross-Verification Mechanism: The Company introduces cross-verification into the annotation process with expert arbitration conducted on
data exhibiting significant judgment discrepancies.Training Stage: The Company incorporates regularization terms into the model loss function. For example it employs adversarial learning Appeal Submission
techniques to constrain the model from relying on sensitive attributes during prediction thereby severing pathways to discrimination at the
Algorithm algorithmic level.Fairness Evaluation Stage: The Company has established a security assessment and audit mechanism for large language model technology Provides a prominent appeal entry point on all AI application
Embedding applications. It conducts security and compliance risk assessments tailored to specific application scenarios identifying risks related to data interfaces (e.g. within intelligent customer service chat
compliance content safety bias and discrimination and the impact of automated decision-making. The Company continuously monitors windows) along with alternative channels such as phone and
model inputs and outputs as well as user interactions and performs regular security audits. email ensuring unimpeded access for users to raise
Ongoing objections. Records all appeal information in full to facilitate
Monitoring Green Channel for User Bias Complaints: The Company maintains a dedicated channel to collect potential discrimination cases. subsequent traceability.after Targeted Retraining: Leveraging user feedback and business data the Company conducts targeted retraining enabling iterative
Deployment improvements in fairness through data augmentation or algorithmic adjustments. Investigation and Handling
Reducing the Ecological Footprint Across the AI Lifecycle Performs an automatic review to quickly rectify simple errors.Escalates more complex issues to a dedicated team of
Guided by the principles of green and low-carbon development the Company collaborates with suppliers to advance carbon and energy reduction human experts for in-depth investigation. This t iered
initiatives across multiple dimensions – hardware algorithms and energy usage. This effort reduces the ecological footprint of data centers and approach ensures both processing efficiency and accuracy.AI model operations creating a win-win scenario for both technological innovation and environmental protection.Result Feedback and System Improvement
The Company is advancing the deployment of off-site disaster recovery centers and its big data services with the goal of establishing a data
center that represents the pinnacle of the Group’s technological advancement and green credentials.Provides a clear resolution within stipulated timeframes.Systematically archives appeal cases and uses the insights
Algorithm The Company utilizes time-sharing scheduling technology to stagger multiple training tasks achieving efficient sharing to drive model retraining and rule optimization reducing the
Efficiency of computing resources. Concurrently it employs mixed-precision training to reduce redundant calculations optimize recurrence of similar disputes at their source.Innovation the balance between time and accuracy and lower both training duration and overall energy consumption.Through the comprehensive application of advanced cooling technologies the Company has reduced the Power Usage
Effectiveness (PUE) of its data centers to as low as 1.14. Key measures include:
Application Magnetic Levitation Variable-Frequency Compressors: These compressors achieve oil-free operation via magnetic Impact of AI Tools on Sustainable Development
of Advanced levitation eliminating mechanical friction losses and significantly reducing energy consumption.Refrigeration Powered Heat Pipe Technology (Fluoride Pump Free Cooling): When ambient temperatures fall below 14°C the With artificial intelligence as its core driver the Company accelerates
Technology system automatically switches to “free cooling” mode completely replacing compressor-based refrigeration. This green and low-carbon transformation comprehensively empowering
enables the use of natural cooling sources for nearly half the year substantially cutting electricity consumption. sustainable development. In carbon management the Company
Evaporative Condensation Technology: This technology lowers condensation temperature through spray evaporation has built a standardized carbon management system for the precise
enhancing heat dissipation efficiency. It is particularly effective in high-temperature southern environments reducing measurement and scientific management of carbon emissions.equipment peak power demand. For operational optimization it utilizes intelligent route planning
algorithms to optimize transportation paths and smart loading
On the power supply side the Company leverages hydro wind and photovoltaic resources to promote the technology to improve loading efficiency effectively reducing
Green integration of green electricity. On the demand side it promotes waste heat recovery and utilization using part of transportation energy consumption and packaging material usage. In
Energy and the recovered heat for winter heating or domestic hot water supply in office areas thereby achieving cascading digital office initiatives the Company has fully promoted intelligent
Recycling energy utilization. applications such as electronic delivery receipts and paperless
The Company has achieved 100% green electricity coverage for its data centers through the procurement of Green reimbursement significantly reducing paper consumption and driving
Power Certificates totaling 1 MWh. the greening of business processes. (For more details please refer
to the chapter “Environment – Leading the Low-Carbon Transition” in
Green The Company repurposes existing warehouse structures into data centers enabling intensive construction and this report.)
Retrofits for reducing the energy footprint associated with civil engineering.Buildings and The Company deploys rooftop photovoltaic systems within its campuses operating on a “self-generation and self-Infrastructure consumption” model to power office areas. These are complemented by intelligent energy-saving measures such as rainwater harvesting and motion-sensor lighting fostering a green and low-carbon park ecosystem.
119SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Industry-Academia-Research Collaboration
Guided by the principle of openness and mutual benefit the Company closely collaborates with partners such as research institutes and
universities to jointly advance the innovative application of cutting-edge technologies including large models digital twins blockchain and
operations research optimization within the logistics sector. This injects new momentum into the transformation and upgrading of China’s logistics
industry opening a new chapter in intelligent logistics.Currently the Company has developed mature industry-education integration solutions across multiple domains including unmanned logistics
supply chain optimization supply chain execution smart warehousing laboratories and live-streaming e-commerce supply chains providing
sustained impetus for the industry’s innovative development.Innovation Through Industry-Academia-Research CooperationDuring the 5th “Chuangπ – 2025 Summit on the Integration and Innovation of Industry Academia and Research inIntelligent logistics” held in 2025 SF Technology the SF Innovation Center and the School of Management at Zhejiang
Promoting University jointly established the “Joint Innovation Laboratory for Digital and Intelligent Logistics.” This laboratory
Industrial leverages the School of Management’s research expertise in cutting-edge fields such as digital supply chains and
Upgrading intelligent logistics integrating it with SF’s extensive industry scenarios and practical experience. Focusing on real-world challenges faced by enterprises it brings together interdisciplinary strengths in management computer science
manufacturing and more to tackle leading-edge industry problems promote industrial transformation and upgrading
serve national strategic needs and provide continuous momentum for the high-quality development of the real economy.In 2025 SF Technology in collaboration with Shanghai Jiao Tong University and Peking University Shenzhen
Graduate School jointly applied for the special project “Embodied Intelligence and Edge Intelligence” under the “2025Key Industry R&D Plan (First Batch)” issued by the Shenzhen Science Technology and Innovation Commission. By
Government- researching and developing a new generation of lightweight AI models and a multi-agent collaborative scheduling
Industry- system this project aims to establish replicable demonstration practices in unmanned delivery providing core support
Academia- for the Company to build technological advantages and solidify its leadership position in the fields of intelligent logistics
Research and intelligent connected systems.Cooperative Concurrently SF Technology continues to conduct research projects on large models and intelligent agents with the
Projects Shenzhen International Graduate School of Tsinghua University. It also collaborates with domestic and international
universities (e.g. Dalian University of Technology the University of Cambridge Eindhoven University of Technology
and Delft University of Technology) on research topics such as operations scheduling promoting the industrialization
and practical application of AI research outcomes.Since its establishment in 2022 the SF Technology Post-Doctoral Research Workstation has actively recruited high-
Post- caliber talent advancing deep industry-academia-research integration. The workstation has established joint training
Doctoral mechanisms with leading institutions such as Zhejiang University and the Shenzhen International Graduate School of
Research Tsinghua University accelerating the integrated progress of industry academia and research in areas like large
Workstation models digital twins operations research optimization and supply chain optimization. In 2025 the workstation hosted three post-doctoral researchers who are dedicated to researching key core technologies in logistics continuously
enhancing the Company’s technological capabilities and core competitiveness.
120SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Empowering Global Expansion
In 2025 the Company captured opportunities arising from Chinese enterprises’ product and capacity globalization and delivered end-to-end international supply chain solutions across multiple industries in 2025.It successfully launched specialized products such as China-Vietnam Smart Express China-India Air Express YiChain Connect the Asia supply chain warehouse network and overseas freight services achieving
breakthrough business growth.The Company is committed to transitioning from traditional transportation services to deep supply chain collaboration focusing on key industries and delivering customized supply chain solutions tailored to customers’
scenario-based needs. In 2025 cross-border supply chain projects were successfully implemented across consumer electronics smart home appliances new energy industrial manufacturing automotive coffee and tea
beverages and apparel sectors. Services covered the entire chain from domestic consolidation of raw materials and components export customs declaration multimodal transportation import clearance to overseas local
distribution. At the same time the Company through technology empowerment established a cross-border end-to-end visibility platform deployed unified global warehouse management systems and upgraded automated
warehousing facilities delivering efficient responsive and intelligent supply chain solutions to customers.High-Tech Industry Automotive Industry
Leveraging its deep penetration across supply chain scenarios the Company’s annual logistics revenue from The Company established a comprehensive logistics system for a leading traditional automaker covering full domestic
a patio robotics customer exceeded RMB10 million. Logistics revenue from a 3D printer customer increased scenarios and localized overseas operations. Domestically services span inbound logistics finished vehicle logistics and
six-fold year-on-year with services expanded to integrated warehousing and distribution operations in South after-sales logistics. Overseas the Company successfully implemented a nationwide after-sales spare-parts warehousing
China and Mnchengladbach Germany. In response to capacity relocation trends the Company launched and distribution project in the Philippines.the “China-Vietnam Smart Express” cross-border solution providing leading ODM customers with fully
visualized end-to-end China-Vietnam supply chain services. This enabled 100% visibility across cross- Taking into account the country’s archipelagic geography the Company designed an intelligent distribution network
border processes reduced communication costs at disruption points by 50% and improved port congestion comprising “one central warehouse plus nine forward distribution nodes” integrating local customs clearance intelligent
resolution rates to 92%. Meanwhile the Company developed a “Vietnam-Ezhou-Europe/United States” end- warehousing and multimodal transportation resources. This enabled same-day or next-day delivery on the main islands
to-end air freight solution for finished goods for top-tier consumer electronics brands facilitating the export and delivery to outer islands in as fast as three hours improving delivery timeliness by 35% and significantly reducing
of high-end Asia-Pacific consumer electronics to Western markets. customer repair waiting times while setting a benchmark for localized overseas logistics services.Industrial Equipment Industry Consumer Goods Industry
For a raw-materials customer relocating manufacturing capacity to Cambodia the Company delivered a In support of brands’ overseas expansion the Company leverages its global warehousing and distribution network and
one-stop solution for their large-scale equipment transport and raw material exports as well as the global international line-haul transportation capabilities to deliver end-to-end cross-border logistics solutions. The Company
distribution of their Cambodian finished products. Domestically the Company designed factory packing provides integrated warehousing and distribution services for a leading domestic sports brand in Vietnam Singapore and
solutions for large equipment and completed port consolidation customs declaration and export. For cross- the Philippines while also handling international sea freight from Europe and the United States to bonded warehouses in
border execution the Company facilitated bonded transfer through Ho Chi Minh port area in Vietnam and Singapore and international air freight from Vietnam to the United States. For another leading sports brand the Company
provided professional customs clearance and trucking services ensuring the smooth entry of goods into delivers Chinato-Singapore overseas warehouse fulfillment services enabling a unified online-offline integrated packaged
Cambodia directly supporting the successful relocation of the customer’s factory. The project demonstrated solutions through integrated B2B/B2C warehouses. By supporting both forward and reverse logistics across multiple
the Company’s prominent Southeast Asia cross-border integration and end-to-end fulfillment capabilities. scenarios the Company provides a solid logistics foundation for brands’ overseas market exploration.While achieving breakthroughs across multiple industry scenarios in its international supply chain business
the Company has also witnessed steady improvements in service quality and customer stickiness in its
international express and cross-border e-commerce logistics businesses with revenue growing rapidly.The Company deepened its industry cluster strategy by establishing specialized services in 15 core
manufacturing clusters including Shenzhen Hangzhou and Yiwu serving enterprises’ global expansion.Beyond logistics solutions the Company supported merchants through resource integration and operational
assistance. In the Suzhou wedding apparel cluster business volume grew by more than 200%. Strategic
collaboration with leading global and domestic e-commerce platforms was further strengthened providing
compliant stable and high-quality routes with customized high time-definite end-to-end solutions. While
maintaining stability in U.S.-bound routes the Company actively supported expansion into Europe and
emerging markets. In 2025 revenue from Europe and Japan dedicated lines increased significantly
becoming an important growth driver.Aligned with the Belt and Road Initiative and the “Express Delivery Going Global” strategy the Company
will continue to advance the vision of “seamless global logistics” driving the development of an
interconnected innovative inclusive smart and green international supply chain system. Through broader
higher-standard and deeper international collaboration the Company aims to deliver greater achievements
Asia-Pacific Bulk Product Launch in Bangkok Thailand and serve a broader global market.
121SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Providing Premium Services
The Company has consistently adhered to a “customer-centered” philosophy striving to deliver service offerings that are not only of compelling
value but also exceed expectations. From express delivery products to comprehensive logistics services and be-spoke industry-specific supply In the ranking released by the State Post
chain solutions the Company remains deeply committed to honoring the trust placed in SF by every customer providing services that are both
reliable and value-enhancing. Empowered by technology the Company continuously optimizes and upgrades its service and product portfolio Bureau SF has been ranked first in
having built a comprehensive multi-dimensional service matrix covering timeliness weight shipping frequency transportation distance public satisfaction with express delivery
application scenarios and geographic locations. This matrix not only meets diverse needs through precise on-time delivery commitments but
also enables continuous service quality improvement through its digital and intelligence capabilities. The Company’s business has deeply services for 16 consecutive years
penetrated sectors such as industrial manufacturing commercial distribution agricultural product distribution food and pharmaceutical cold chain (2009-2024) and the first three quarters in
international trade and local life services. Its services comprehensively cover all aspects of social production and people’s livelihood security 2025
continuously solidifying its brand image of being “fast” “reliable” and “premium service”.SF’s commitment to excellence has led to unparalleled brand value. The Company has built a loyal and highly engaged customer base across
various industries becoming the go-to logistics partner for many top-tier customers. This dedication to premium service has earned SF wide
recognition from customers industry peers and the public alike.Delivering Premium Logistics Services
The Company consistently provides high-quality logistics services safeguarding every parcel with both exceptional speed and thoughtful care.Timeliness Excellence and Delivery Fulfillment
The Company consistently treats precise on-time delivery commitments as its core competitive strength. It has spearheaded the reshaping of
service standards within China’s time-sensitive express delivery industry setting a benchmark for standardized services in the sector. To ensure
efficient fulfillment the Company continuously refines its pickup service system providing high-frequency pickup guarantees. Couriers can arrive
at the pickup address within one hour of an order being placed. In China SF has become the household name and synonym for high-timeliness
express delivery service. “Let me SF this to you” has been equivalent with “express delivery to you”. Simultaneously many corporate clients
and e-commerce platforms choose SF free shipping using it as a key channel to signal their own service quality and brand image. This practice
further reinforces consumers’ perception and trust that products from these platforms and merchants come with high-quality assurance thereby
fostering better sales growth.In response to these evolving consumption patterns and upgraded market demands the Company has focused on “enhancing productcompetitiveness” and “deepening channel penetration across diversified scenarios” as its core strategic directions. Through service enhancement
channel expansion scenario-based solutions and hub empowerment initiatives the Company has further consolidated its industry-leading position
in time-definite services delivering superior shipping experiences and supporting high-quality business growth.In December 2025 the Company launched its “Peace-of-Mind Delivery * On-Time Guarantee” service initially covering its SF speedy express
products. Customers placing orders through official channels are eligible for cash or voucher compensation in the event of delays attributable to
the Company. The service was first rolled out in 10 cities including Dalian Shenzhen and Qingdao covering more than 100 two-way delivery
routes and will be gradually expanded to all routes nationwide.The successful implementation of the “Peace-of-Mind Delivery * On-Time Guarantee” service is underpinned by the Company’s years of sustained
investment and accumulation in core areas such as infrastructure development technology R&D and refined operations management. It
demonstrates firm confidence in its own operational capabilities and is a direct embodiment of the “customer-centered” philosophy. The Company
will continue to explore more effective initiatives and innovative pathways within industry service standards promoting a sound transformation
towards superior “service quality” among express logistics enterprises ensuring that every parcel entrusted to them is handled with greater peace
of mind.
122SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Warmth in Every Delivery
From daily fulfillment to safeguarding deliveries during festive
seasons from supporting practitioners in increasing their income Preserving the Aroma of Pu’an Tea: Streamlining the Freshness Supply Chain
to meeting consumer expectations SF consistently delivers warm
attentive logistics services that span all scenarios and needs.Whether ensuring convenient delivery during holidays or providing
specialized services focused on people’s livelihood and boosting Pu’an spring tea from Guizhou is renowned for its characteristics of being “Ancient Early-Harvest Pure and Fragrant.” However its remote
farmers’ incomes the Company employs tailored solutions to address mountainous location once presented challenges of limited market
pain points in the distribution chain conveying the warmth of its access and difficulty in preserving freshness. The Company precisely
service through professionalism and dedication. addressed these distribution hurdles establishing an efficient freshness-
critical supply chain from the tea gardens to the teacup.The Company set up over 300 collection points in core areas supported
by mobile collection vehicles ensuring that processed tea leaves are
dispatched within two hours. By launching 25 direct delivery routes
and deploying two dedicated cargo aircraft it established a intelligent
logistics network capable of achieving delivery times as fast as 7 hours
to other provinces and coverage of major cities nationwide within 24
hours. For quality control the Company implemented the “Fengsu”
blockchain traceability system alongside temperature and humidity
sensors throughout the journey guaranteeing constant-temperature
storage and transportation. Furthermore through the co-development
of eco-friendly freshness-preservation packaging participation in brand
co-building and channel empowerment initiatives it effectively assisted
the spring tea in expanding into domestic and international markets and
enhancing its value.Deepening Logistics Empowerment: Boosting Incomes for Blueberry Growers
Given the tender f ragi le nature and str ingent f reshness solution by leveraging its four central platforms: Business
requirements of Yunnan blueberries the Company built a Synergy Channel Expansion Marketing Empowerment and
comprehensive logistics system centered on technological Logistics Assurance. As a logistics enterprise deeply invested in
innovation and customized services. This system safeguards the blueberry delivery the Company has witnessed and contributed
berries’ fresh succulent quality and helps growers increase their to the journey of Yunnan blueberries from a regional specialty
income. to a national and global brand. Growing alongside the Yunnan
blueberry industry it has built an intelligent full-link logistics
The Company adopted an end-to-end temperature-control solution service system spanning the “Origin – Transit – Consumption”of “Pre-cooling at Origin + Refrigerated Trucks + Insulated spectrum.Packaging.” It introduced an “Intelligent Monitoring System” to track
vehicle location temperature and humidity data in real time with
automatic alerts for any anomalies. This ensures fully controllable
transportation and direct delivery of freshness during the blueberry
peak season. For after-sales support the Company established
a dedicated blueberry customer service hotline committing to
a 2-hour response and 24-hour resolution timeframe. It also
implemented a full-process temperature-control and anomaly early-
warning mechanism to ensure every single blueberry is delivered
with peace of mind.Beyond providing logistics services SF has constructed an
“Integrated Production Supply and Marketing” supply chain
123SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Elder-Friendly Services
To effectively address the inconveniences faced by seniors during the parcel-sending process the Company has systematically introduced a range of convenient senior-friendly shipping services. These initiatives are
designed around the specific needs of this demographic in terms of vision usage habits and cognitive abilities aiming to help seniors use express delivery services easily and with peace of mind.Large-Character Service Family Account Service Quick Ordering Service Express Tracking Service Outlet Query Service
Provide a visual interaction interface Support service l inkages such as Integrate multiple interaction methods Optimize the interface of the logistics Clear ly display out let addresses
with large fonts high contrast and placing orders on behalf making such as AI voice recognition address information query function enabling bus iness hou rs and nav iga t i on
simplified functions globally making it payments on behal f and picking past ing and voice cal ls to of fer seniors to easily track the status of i n f o r m a t i o n e n a b l i n g s e a m l e s s
easier for seniors to read and interact. up parcels on behalf among family seniors a convenient and accessible their shipments. connection between seniors’ online
members. order-placing process. queries and offline services.Barrier-Free Express Delivery Service
To practice the concept of “Technology for Good Service Without Boundaries” the SF official website is fully accessible providing features such as high contrast font scaling screen reader compatibility and keyboard
navigation to enable special groups including the visually impaired hearing-impaired and seniors to access service information equally and conveniently making express delivery services truly barrier-free.Barrier-Free Browsing Interface of the SF Official Website
124SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Improving Customer Experience
The Company systematically integrates the concept of “customer-centered” into the entire service operation
process taking customer satisfaction as the core goal of quality management and continuously driving the Customer Communication Channels
upgrade of service standards and concepts. This is achieved through systematic demand insight guided by To systematically address customers’ demand for efficient and convenient communication the Company
customer journey maps closed-loop management and full-link operational collaboration. has built an intelligent omni-channel service system covering voice online self-service and instant
messaging channels. Through the deep integration of AI technology it enhances service responsiveness
Customer Service Goals and Performance and problem-solving capabilities while striving to ensure a consistent experience and uniform service
standards across all channels. It continuously monitors and optimizes customer satisfaction and channel
2025 Goal 2025 Performance 2026 Goal efficiency as key performance indicators.
Customer Customer complaint Customer complaint Customer complaint
Service dissatisfaction rate below 4% dissatisfaction rate: 3.2% dissatisfaction rate below 3.2% SF Customer Communication Channels
In 2025 the Company continued to deepen its strategic commitment to “customer-centered” through
three core initiatives: service model innovation deep AI technology enablement and time-definite product Intelligent Voice Official Service Hotline: 95338
upgrades driving optimization and innovation across the entire service process. These efforts aim to Service Channel
achieve the following specific objectives: continuously improving customer satisfaction strengthening
customer trust and ultimately delivering long-term value through shared growth with customers. Function: AI voice navigation handles high-frequency requests such as placing and tracking orders. It
intelligently recognizes customer intent and supports seamless transfer to a live agent balancing service
efficiency with personalized support.Online Intelligent
Service Model Deep AI Technology Time-Definite Product Customer Access the “Online Customer Service” Portal via the SF Website App or WeChat Mini
Innovation Enablement Upgrades Service Platform Program
Function: AI-powered intelligent customer service accurately identifies scenarios like inquiries complaints and
claims providing real-time solutions or guiding self-service operations. It supports one-click transfer to a liveFocusing on the “Dedicated Deepening the application To address market demand agent creating an efficient service closed loop.A c c o u n t M a n a g e r + of AI in its customer service fo r h igh - t ime l iness and
Enterprise WeChat One- s y s t e m t h e C o m p a n y h i g h - r e l i a b i l i t y e x p r e s sStop Service” model the l e v e r a g e s i n d u s t r y - services the Company has
Company assigns dedicated l e a d i n g t e c h n o l o g i e s i m p l e m e n t e d m e a s u r e s Online Self-
online account managers such as intelligent speech i n c l u d i n g o n e - c l i c k service Feedback Access the “Feedback” Portal via the SF Website App or WeChat Mini Program
to high-value cl ients. By r e c o g n i t i o n n a t u r a l customer service across all Channel
leveraging the Enterprise language processing and touchpoints 24/7 manned
W e C h a t p l a t f o r m i t la rge language mode ls s e r v i c e a n d p r o a c t i v e Function: It intelligently guides customers to independently submit issues and suggestions. The AI then
integrates service resources del ivering advantages in excep t ion management . analyzes and categorizes this feedback in real time helping the Company swiftly identify service bottlenecks
such as demand response accuracy automation and T h i s d e l i v e r s a w o r r y - and drive experience optimization.i s s u e r e s o l u t i o n a n d coverage. This effectively f r e e p r e m i u m d e l i v e r y
resource coordinat ion to enhances service efficiency experience characterized
achieve efficient handoffs and sustainable operational by speed reliabil ity and Instant Messaging
t h r o u g h o u t t h e s e r v i c e capabilities. warmth. Collaboration SF Official Enterprise WeChat (Customer Service or Courier)
process and enhance the Channel
consistency of customer
experience. Function: It enables point-to-point instant communication. Integrated with an AI assistant for real-time Q&A
support it enhances the continuity and responsiveness of the shipping service process.
23 The customer complaint dissatisfaction rate is calculated based on customers’ satisfaction ratings regarding the resolution of their complaints specifically as the number of dissatisfied customers divided by the total number of complaints.
125SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Customer Complaint Management Customer Satisfaction Survey
The Company has formulated management systems including The Company has established a standardized customer feedback To continuously improve customer experience the Company has
the Measures for Accepting Customer Complaint the Complaint management mechanism: All customer feedback is recorded in established a systematic customer experience monitoring and
Handling Process the Claims Management Measures and the real-time and assigned to dedicated personnel for follow-up with feedback closed-loop system. It aims to drive service optimization
Complaint Handling Escalation Mechanism establishing standards a commitment to response and confirmation within one hour and through ongoing insights build sustainable customer relationships
for each stage of complaint handling to ensure timely response and closed-loop resolution within 24 hours. Through structured root cause and effectively integrate commercial value and social responsibility.standardized resolution. Simultaneously the Company has built analysis individual cases are transformed into systemic service
an emergency response capability system. Through the classified improvements forming a continuous improvement governance loop. The Company conducts quarterly customer satisfaction and Net
and tiered management of complaint incidents it efficiently handles Promoter Score (NPS) surveys via online questionnaires employing
emergencies comprehensively improving complaint response Regarding customer rights protection the Company’s customer random stratified sampling. It continuously monitors the NPS and
eff iciency. In 2025 focusing on refining upgrade of service service embeds the “customer-centered” philosophy throughout satisfaction scores of both corporate and individual customers
management the Company revised the Customer Service Operation the entire claims service process. To accurately address diverse systematically analyzes the feedback and translates it into concrete
Management Mechanism. Incorporating the practical experience of industry and scenario needs it has constructed a tiered and targeted optimization act ions for products processes and customer
integrated modular one-stop service from the year it established claims service system encompassing models such as direct sales relationship management. In 2025 the total sample size for the
cross-scenario collaboration pathways. It added tiered response compensation on-site courier compensation rapid customer service customer satisfaction survey exceeded 160000 covering hundreds
strategies for peak periods built a flexible safeguard mechanism compensation and collaborative face-to-face negotiation with of cities nationwide. The survey included customer NPS and overalland promoted the evolution of operational management from “siloed insurance companies. Concurrently by continuously refining systems satisfaction as well as more than 80 specific indicators across 12coordination” to an “integrated whole” and from “uniform response” to like the Claims Management Measures and the Industry Claims dimensions such as delivery timeliness parcel safety pickup and
“tiered refinement.” This enhances the level of refined management Strategy and upgrading supporting system processes the Company delivery services after-sales service and system services enabling
ensuring efficient and stable operation. has established closed-loop management from strategy formulation a granular assessment of customer experience. According to the
to efficient execution. survey the Company’s NPS in 2025 was 79.6 maintaining a leading
position in the industry.SF’s Customer Complaint Handling Process
Real-Time Acceptance Customer Service
Customer Acceptance
Complaints and Work Order
Creation
Respond Within
1 Hour
Resolution Within
Issue 24 Hours After-Sales
Resolution Contact and
and Customer Initial Progress
Case Closure Update
Root Cause Analysis
and Classification
for Service
Improvement
126SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Promoting Industry Development
The Company adheres to a development philosophy of openness and
sharing. Through multidimensional practices such as technological Building a New Ecosystem for the Apparel Logistics Supply Chain
innovation collaborative standard-setting and ecosystem synergy it
engages in the transformation of the global logistics system and the
process of industrial upgrading and transformation. In international
markets the Company drives efficiency improvements in cross- As the chair unit of the Apparel Logistics Branch of the China
border logistics with digital and intelligent logistics solutions not Federation of Logistics and Purchasing the Company co-only supporting Chinese enterprises in their global expansion but hosted the “2025 Annual Conference on Apparel Logistics andalso fostering the standardized and efficient development of the Supply Chain” in July 2025. The event brought together nearly
cross-border logistics industry. In domestic markets focusing on the 200 related industry enterprises and approximately 1000 industry representatives serving as a significant platform for
core issue of sustainable development the Company collaborates communication cooperation and collaborative development.with industry partners to explore pathways for green supply chain
transformation promoting green and low-carbon development across During the conference the Company engaged in in-depth
the sector. discussions with senior executives of participating brand
enterprises and industry experts on trends in the apparel
The Company actively responds to the Belt and Road Initiative and footwear industry through corporate exhibition booths
and participates in the “Express Delivery Going Global” project. keynote speeches presentations at technology sub-forums
Leveraging its end-to-end cross-border supply chain capabilities and roundtable interactions comprehensively showcasing its
it helps Chinese enterprises expand globally and drives cross- supply chain service capabilities for the sector. At the meeting the Company officially released five directions for supply chain
border logistics toward standardization and efficiency. Since joining upgrades in the apparel and footwear industry: warehousing and
the Universal Postal Union Consultative Committee (UPUCC) in distribution services store-delivery services global expansion
2024 the Company has actively participated in global postal policy services digital and intelligent services and green supply
formulation and rule discussions contributing Chinese practical chain services providing systematic solutions for industry
experience to global logistics governance. Concurrently as a transformation.founding member of the Global Sustainable Transport Innovation
Alliance and a co-initiator of the ESG Collaborative Development The apparel and footwear industry is currently undergoing
Alliance of the Chinese Logistics Industry the Company is working profound transformation with brand enterprises facing multiple
with global partners to advance the green transformation of the chal lenges including personal ized consumption supply chain flexibility internationalization and green low-carbon
logistics industry. development. As the chair unit upholding the philosophy of
“openness collaboration and mutual benefit” the Company
To promote green aviation development the Company actively joins is willing to share the mission and build capabilities with
industry organizations related to sustainable aviation fuel. In July ecosystem partners. It will continue to focus on digital and
2025 the Company participated in launching the first international intelligent solutions green practices global footprint expansion
special committee under the Global Sustainable Transport Innovation and talent innovation to build an apparel logistics supply chainAlliance – the Sustainable Aviation Fuel Committee. In August of ecosystem that is “more agile greener and more globallythe same year as one of the first member organizations it officially competitive” injecting strong momentum into the high-quality
joined the China Sustainable Aviation Fuel (SAF) Industry Alliance development of China’s apparel industry.collaborating with partners across the entire value chain to explore
low-carbon solutions for air logistics.Driven by both international collaboration and local practice the
Company is leveraging technological innovation as a link and shared
responsibility as a foundation continually unlocking synergistic value
for the industry.
127SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Safeguarding Delivery Security
The Company strictly complies with laws and regulations such as
the Law of the People’s Republic of China on Postal Services the Real-name delivery is integrated with the “National Network Identity Authentication Platform” of the Ministry of Public
Administrative Measures for the Supervision of Delivery Security in the
the Security with user information authenticated by this authoritative platform to ensure its authenticity and validity.Postal Industry Administrative Measures for Real-Name Collection
and Delivery of Mails and Express Items and the Regulations on the Process Real-name prompts and links are displayed on the WeChat Mini Program and app order pages to guide customers
Management of Prohibited Items continuously improving its delivery Integration to complete real-name authentication before placing an order.security management. The Company’s Administrative Regulations on
the “Three Systems” for Delivery Security establishes the core control Real-name information for contracted corporate customers is regularly verified with prompts to correct anyprinciples of “real-name collection and delivery item inspection upon inaccuracies to improve data accuracy.collection and machine security screening” comprehensively ensuring
the safety of express delivery. In 2025 based on relevant delivery
regulations the Company further refined its management standards for
the collection and delivery of battery-containing items and optimized its
operating specifications for the delivery of live animals. Customer ID cards are automatically identified via OCR/NFC and an original ID card plus two-factor
Real-Name Authentication Management verification model is used to ensure the validity of real-name authentication.System A “Scan to Authenticate” feature allows users to scan a QR code using WeChat and be automatically
The Company continuously advances its real-name authentication Enforcement directed to the mini program for real-name authentication.process. Through methods such as process integration system
enforcement and performance monitoring it fully implements the real- Real-name prompts have been optimized with reminders added before during and after order placement
name collection and delivery system requiring couriers to verify the and users are notified in advance to have valid identification ready.sender’s identity upon collection to ensure delivery safety and user
information security. The Company has also introduced a facial recognition
system as a supplementary means for identity verification significantly
enhancing the accuracy and efficiency of sender identity authentication
and ensuring the safety and compliance of the delivery process.Performance The causes of real-name anomalies identified by the State Post Bureau are analyzed with daily reports
In 2025 SF ’s on l i ne rea l -name Monitoring generated to drive improvements by relevant departments.registration rate reached
99.95%
128SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Contraband Management
The Company strictly adheres to the Regulations on the Management of Prohibited Items formulates and dynamically updates the Standards for Common Accepted Items ensuring its delivery security management
system remains current. It regularly conducts specialized campaigns for delivery security. Through multiple measures including strengthened inspection management deepened employee training and optimized incentive
mechanisms the Company effectively prevents prohibited items from entering delivery channels and properly handles any contraband that has entered the channels. This fully maintains the safety and smoothness of
delivery channels and creates a safe stable delivery service environment for the public.Pickup and Delivery Security Screening Government- Positive
Inspection Investment Business Collaboration Incentives
The system is embedded with the Standards for Increase investment in high-speed security screening Strengthened cooperation with public security authorities The Administrative Measures for Rewards for Self-
Common Accepted Items to alert and intercept equipment has enhanced screening quality. enables accurate tracking and interception of parcels Reporting of Prohibited Items have been implemented
prohibited items during customer order placement and A self-developed smart screening platform integrates linked to suspicious individuals during collection and to encourage security screening personnel to proactively
courier pickup. sorting and security screening automating parcel transit. The Company actively communicates and discover and report suspected prohibited items.Mandatory photo inspection is required for high-risk processing and enabling remote multi-site analysis and cooperates in the handling of suspicious items.items with images uploaded to the system to strengthen identification of suspected contraband.collection security controls.Contraband Screening and Management Prohibited Items the coverage rate for specialized
The Company actively collaborates with relevant national authorities to jointly combat the illegal transportation of Identification Training delivery security training among
contraband. It conducts comprehensive and stringent safety inspections on every parcel to ensure their security. In pickup and delivery personnelThrough diverse formats combining online
2025 practitioners across various regions proactively reported leads on illicit items with a total of 212 individuals In 2025and offline training self-training and
receiving rewards. That year the Company intercepted 21300 prohibited items marking a decrease for the second reached 100%briefings during morning meetings the
consecutive year. This demonstrates the Company’s significant achievements in strengthening employees’ safety Company regularly conducts specialized
awareness and enhancing public understanding of safe delivery practices. training on prohibited items identification
for frontline employees. This continuously with a 100% pass rate for
enhances the entire staff’s professional delivery security training
Safeguarding the Boao Forum for Asia: Fortifying Delivery Security capabilities in identification and handling
comprehensively st rengthens safety
awareness and practical skills and builds
During the 2025 Boao Forum for Asia Annual Conference the Company fully leveraged its professional a solid safeguard for delivery security.security screening capabilities and intelligent equipment advantages successfully completing the delivery
security assurance mission for the conference. Following strict review the Boao Transfer Station was
designated as the official centralized security screening site becoming the core node for centralized
screening of express deliveries from across the entire industry.The site achieved efficient operation based on the following core advantages:
Advanced Ample Professional Efficient Process
Facilities Space Team Operation Control
Newly deployed A 17000-square- A team of 91 Equipped with A three-phase
security screening meter operational employees and intelligent security centralized
equipment area enabled certified security screening screening process
meeting high closed-loop screeners machines the was strictly
standards management of provided site screened all implemented to
ensured detection an independent end-to-end parcels within ensure absolute
accuracy and security screening support ensuring three hours; delivery security.efficiency; zone; standardized
operations;
This initiative fully demonstrated the Company’s professional competence and industry commitment in
securing major events. By strengthening its defenses with technology it provided an efficient and reliable
logistics security solution for this international gathering further solidifying its benchmark position in industry
security services.
129SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Appendix
About This Report
This is the seventh annual sustainability report issued by S.F. Holding Co. Ltd. Adhering to the principles of balance comparability accuracy timeliness clarity and reliability this report discloses the management measures and effectiveness
of S.F. Holding Co. Ltd. in terms of sustainable development.Report Titles Reporting Principles
This Report responds to and follows the reporting principles of the Environmental Social and Governance Reporting Guide including
For the convenience of expression and reading “SF” “SF” “the Company” “we” and “the group” in this report refer materiality quantitative consistency and balance. The following table describes the Company’s application of the reporting principles:
to “SF Co. Ltd.”.Report
Principles Company’s Response
Time Scope SF uses a double-materiality analysis method to systematically identify and evaluate ESG material issues from
Materiality the two dimensions of financial materiality and impact materiality. After the evaluation results are reviewed and approved by the strategic committee of the board of directors they serve as an important basis for the compilation
This report covers the period from January 1 2025 to December 31 2025. of this report.This report discloses SF’s key quantitative performance indicators and sets ESG targets where applicable. The
Reporting Scope Quantification calculation standards methods assumptions and/or calculation tools for all quantitative indicators have been explained in the corresponding positions.Unless otherwise specified the selection preparation and reporting of information in this report are consistent with
The reporting scope of general disclosure management of substantive issues and key social performance indicators Consistency those of previous years. If there are any significant changes that may impact comparability with prior years’ reports
in this report aligns with the scope of the consolidated financial statements in SF Holding’s annual financial report. To we will provide explanations in the relevant sections.more comprehensively and accurately reflect the Company’s key environmental performance indicators the Company This report is based on objective information and facts and fairly discloses positive and negative information about
will continuously refine the data statistical calibers and methodologies for each environmental performance indicator Balance the Company to prevent descriptions or reporting formats that may affect readers’ decisions or judgments.to ensure data reliability. If there are additional explanations regarding the coverage of certain information in this
report such explanations shall prevail. Meanwhile the Report responds to and follows the reporting principles of the GRI standard. The following table is the Company’s
explanation of the application of the reporting principles:
Reference and Principles Report
Principles Company’s Response
The content of this report has been determined in accordance with a systematic process. This process includes This report aims to disclose accurate and detailed information to fully assess the relevant impacts of the Company’s
research and interviews identification of significant stakeholders identification of material ESG issues understanding sustainability. Qualitative information is primarily sourced from corporate announcements the official website the
the views of various stakeholders determining the materiality of issues deciding the scope of ESG reporting official WeChat public account and internal materials. Quantitative data is mainly obtained through the internal data
collecting relevant information and data verifying the information and data preparing the report based on the collected collection system with key financial data (such as operating revenue) derived from the Company’s annual report.information and data and review and approval of the report by the Board of Directors. Accuracy The basis for data measurement and calculation as well as the fundamental assumptions and methods used to estimate the data are explained in the relevant sections of the report.The references for the preparation of this report include: This report has undergone several rounds of rigorous review by the Company to ensure the accuracy of the
disclosed information.Appendix C2 Environmental Social and Governance Reporting Code to the Rules Governing the Listing of
Securities on The Stock Exchange of Hong Kong Limited In the process of compiling this report the reading needs of different reader groups have been fully considered.It is written in accessible language and detailed explanations of English abbreviations and technical terms are
The Shenzhen Stock Exchange’s Self-Regulatory Guidance No. 17 for Listed Companies – Sustainability Clarity provided in relevant sections of the report. The report is published in three language versions – Simplified Chinese Report (Trial) and Self-Regulatory Guide No. 3 for Listed Companies – Preparation of Sustainability Reports Traditional Chinese and English – to cater to the language preferences of diverse readers. Additionally a detailed
Global Sustainability Standards Board (GSSB) GRI Standards table of contents and an index of appendices are included to facilitate readers in quickly locating and accessing the information they need.Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) This report is based on the results of the 2025 SF Materiality Assessment and provides a comprehensive disclosure
International Sustainability Standards Board (ISSB) IFRS S1 – General Requirements for Disclosure of Completeness of the Company’s management measures practices events and their impacts in each materiality area. Additionally Sustainability-related Financial Information and IFRS S2 – Climate-related Disclosures the reasons for which certain compliance disclosure requirements are deemed inapplicable or have been simplified
Sustainability Accounting Standards Board SASB Standards are detailed in the index of appendices.United Nations Sustainable Development Goals (SDGs) Sustainable This report discloses relevant information of the Company in the context of broad sustainable development with
Development full reference to the United Nations Sustainable Development Goals (SDGs) the climate action goals of the Paris Key indicators used by capital market rating agencies to assess corporate environmental social and governance Background Agreement relevant authoritative intergovernmental documents and the sustainability-related policies of the (ESG) performance locations where it operates.This annual sustainability report is published concurrently with the Company’s annual financial report aiming to
Timeliness provide readers with timely information for decision-making purposes. The information disclosed in this report covers the period from 1 January 2025 to 31 December 2025. To ensure the completeness of the information the time
frame for some information has been appropriately extended both forward and backward.The Company has developed a digital information platform that enables the collection and calculation of data
Verifiability related to energy consumption and greenhouse gas emissions. This platform has been subject to review by external professional organizations. The data and information compiled recorded aggregated and analyzed in this report
are sourced from verified primary data and do not include any unverified content.
130SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Data Explanation
In March 2026 the Company successfully passed the verification of the international independent third- During the preparation of this report the Company conducted a systematic retrospective review of its
party verification institution SGS-CSTC Standards Technical Services Co. Ltd. completed the third-party environmental performance data for 2023-2024. The adjustments and restatements of relevant data are
certification of greenhouse gas emissions for the year 2025 and obtained the greenhouse gas verification explained as follows:
statement certificate.As the Company’s greenhouse gas (GHG) inventory has been continuously improved and its accounting
and statistical boundaries have been gradually standardized adjustments have been made to certain
key performance indicators (KPIs) for 2023-2024 including gasoline consumption diesel consumption
total energy consumption energy consumption intensity non-hazardous waste and amount of recycled
waste to ensure consistency in data accounting logic.The Company supplemented and retrospectively expanded the coverage scope of 2023 GHG emission
data and recalculated and retrospective adjusted certain 2023 KPIs including GHG emissions and
energy consumption.The Company will further strengthen its ESG data collection and verification procedures introduce a cross-
verification mechanism and continuously enhance its data governance capabilities.Unless otherwise specified all data presented in this report are rounded to one decimal place. Due to rounding
effects the total or percentage figures in some tables may differ slightly from the direct sum of individual line
items. Such differences do not constitute calculation errors.For the monetary amounts stated in the Report unless otherwise stated the currency in the Report is
denominated in RMB.This Report is published in both Chinese and English. If there is any discrepancy between the Chinese version
and the English version the Chinese version shall prevail.Report Release
This report confirmed by management was approved by the Board of Directors on March 30 2026 and
released concurrently with the annual financial report.Accessibility of This Report
You can obtain the electronic version of this Report from the following website: SF’s official website
https://www.sf-express.com.For further consultation or to offer any opinion or suggestion about this Report please contact the Company
via sfir@sf-express.com.
131SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Assurance Statement
132SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Policy List
Chapters Chapter Names Compliance with Major Laws and Regulations SF’s Major Internal Regulations
Articles of Association of SF Holdings Co. Ltd.Rules of Procedure of the Board of Directors
Company Law of the People’s Republic of China Rules of Procedure of the Supervisory Board
Securities Law of the People’s Republic of China Rules of Procedure of the Shareholders’ Meeting
Standardizing Shenzhen Stock Exchange Stock Listing Rules Independent Directors’ Working System
Corporate Securities Listing Rules of The Stock Exchange of Hong Kong Limited Board Risk Management Committee Rules of Procedure
Governance Guidelines for the Management of Investor Relations Board Audit Committee Rules of Procedure
Work of Listed Companies Board Nomination Committee Rules of Procedure
Corporate Governance Guidelines for Listed Companies Board Compensation and Assessment Committee Rules of ProcedureBoard Strategy Committee Rules of Procedure
Investor Relations Management System
Company’s Management System for Information Disclosure
Strengthening Risk Corporate Governance Guidelines for Listed Companies Rules for the Operation of the Risk Committee
Management Securities Listing Rules of The Stock Exchange of Hong Kong Limited Group Risk Control and Compliance Management SystemBasic Norms for Internal Control in Enterprises Group Risk Event Management System
SF Express Anti-Monopoly and Competition Law Compliance Management System
Civil Code of the People’s Republic of China Integrity Handbook
Anti-Unfair Competition Law of the People’s Republic of China Employee Handbook
Interim Provisions on Anti-Unfair Competition on the Internet SF Anti-Corruption Compliance Management System
Anti-Monopoly Law of the People’s Republic of China Reporting Management Measures
Governance Anti-Money Laundering Law of the People’s Republic of China Code of Business ConductUpholding Trademark Law of the People’s Republic of China SF Supplier Code of Conduct
Business Ethics Copyright Law of the People’s Republic of China Anti-Corruption Statement
Audit Law of the People’s Republic of China Conflict of Interest Statement
Patent Law of the People’s Republic of China SF Group Anti-Corruption Compliance Policy for Commercial Partners
Interim Provisions on Prohibiting Commercial Bribery Code of Conduct for Overseas Procurement Personnel
Accounting Standards for Enterprises – Application Guidelines Management Measures for Kinship and Bidding Avoidance
Regulations of the Audit Office on Internal Auditing Work SF Group Intellectual Property Management System
SF Group Software Compliance Management Measures
Management Provisions on the Organizational Structure and Duties of Information Security and Privacy Protection
Management
Management Standard for Compliance Inspection of Personal Information Protection
Data Lifecycle Security Management Regulations
Data Asset Classification Grading and Security Management Measures
Ensuring Personal Information Protection Law of the People’s Republic of China Information Security High-Risk Behavior Management Measures
Information Data Security Law of the People’s Republic of China Information Security Incident Management Regulations
Security Cybersecurity Law of the People’s Republic of China Information Security Reward and Discipline PolicyRegulations on the Management of Network Data Security Privacy Data Security Compliance Management Standards
SF App Privacy Compliance Standards
Employee Information Security Handbook
Emergency Response Plan for Cybersecurity Incidents
Emergency Response Plan for Data Security Incidents
Measures for the Security Management of Application Recommendation Algorithms
133SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Chapters Chapter Names Compliance with Major Laws and Regulations SF’s Major Internal Regulations
Leading the Low-
Carbon Transition No Relevant Laws and Regulations SF Environmental Management Policy
SF Interim Regulations on Aviation Energy Management System
Interim Regulations on Express Delivery Regulations on the Management of Operating VehiclesInterim Management Measures for Fuel Consumption of Operating Vehicles
Developing Green Method and criteria for green packaging assessmentRequirements of restricting excessive packaging in express delivery Regulations on the Management of Water and Electricity in the ParkLogistics GB43352 – 2023 Limits of Heavy Metals and Specific Substances in Express Delivery Industrial Park Energy Consumption Management System
Packaging Guidelines for the Maintenance and Management of Facilities and Equipment in the Industrial ParkService Standards for Property Management in the Industrial Park
SF Packaging Operation Standards
Advancing Circular
Economy Circular Economy Promotion Law of the People’s Republic of China SF Environmental Management Policy
Air Pollution Prevention and Control Law of the People’s Republic of China
Law of the People’s Republic of China on the Prevention and Control of Environmental
Pollution by Solid Waste
Law of the People’s Republic of China on the Prevention and Control of Ambient Noise
Pollution
Environmental Energy Conservation Law of the People’s Republic of China
Water Law of the People’s Republic of China
Water Pollution Control Act of People’s Republic of China
Practicing Green Soil Pollution Prevention and Control Law of the People’s Republic of China
Measures for Office Space Management
Operations Integrated Emission Standard of Air Pollutants
Energy Metering Management System
Emission Standards for Odor Pollutants Dangerous Goods Management Procedure
Emission Standard for Industrial Enterprises Noise at Boundary Measures for the Administration of Water and Electricity of Property Sites
Standard for Noise Limits at the Boundary of Construction Plants
Self-monitoring technology guidelines for pollution sources – General rule
Regulation on the Administration of Permitting of Pollutant Discharges
Comprehensive Wastewater Discharge Standard
Standard for pollution control on the non-hazardous industrial solid waste storage andlandfill” (GB 18599-2001)
Guidelines for the Investigation of Soil Pollution Hazards in Key Regulatory Units (Trial)
Protecting the Forestry Law of the People’s Republic of China
Ecological Regulations for the Implementation of Forestry Law of the People’s Republic of China No Relevant Internal Management System
Environment Regulations of the People’s Republic of China on Wild Plants Protection
Addressing
Climate Change No Relevant Laws and Regulations SF Environmental Management Policy
134SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Chapters Chapter Names Compliance with Major Laws and Regulations SF’s Major Internal Regulations
Declaration on Protecting Employees’ Rights and Interests
Recruitment Management System of SF
Talent Management System
Labor Law of the People’s Republic of China Senior Management Personnel Management System
Construction of Labor Contract Law of the People’s Republic of China
Expert Management System
Talented Team Regulations for the Implementation of the Individual Income Tax Law of the People’s
College Graduate Management System
Republic of China Measures for the Administration of SF Scholarship for School-Enterprise Cooperation
Employment Promotion Law of the People’s Republic of China Measures for the Administration of the “SF Sponsors Your College Education” ProgramMeasures for the Transfer of Frontline and Second-line Employees
Specifications and Requirements for Internal Recruitment Announcement of Key Positions for the Diversified
Development of Frontline and Second-line Employees
Measures for the Career Development of Pre-Retirement Employees and the Administration of Rehiring Retired Employees
Declaration on Protecting Employees’ Rights and Interests
Employee Handbook
Employee Welfare Management System
Law of the People’s Republic of China on the Protection of Rights and Interests of Attendance Management Regulations
Women Regulations on Rewards and PenaltiesProtecting
Employee Rights Social Insurance Law of the People’s Republic of China
Promotion Guarantee Mechanism for Trade Union Representatives
and Interests Regulations on Work-related Injury Insurance
Panoramic Map for the Promotion and Training of Trade Union Representatives
Special Provisions on the Labor Protection of Female Employees Trade Union Representative Management System
Trade Union Law of the People’s Republic of China Operation Guidelines for Handling AppealsManagement Mechanism for Rationalization Proposals
Operation System for the Model Worker and Craftsman Team
Employee Health Management Guidelines
Notice on the Incentive Plan for Safety and Image Management of Two-and Tricycles
Safety Production Management Manual
Safety Production Responsibility System
Regulations on Acquisition Identification and Compliance Evaluation of Safety Laws and Regulations
Regulations on Safety Assessment and Incentive Management
Regulations on Safety Visual Management
Regulations on Extraction and Use of Safety Production Expenses
Regulations on Management of Safety Production Organizational Structure
Social Work Safety Law of the People’s Republic of China Regulations on Safety Management of Transit Depots Operations
Special Equipment Safety Law of the People’s Republic of China Measures for Safety Management of Forklifts in Transit Depots
Fire Protection Law of the People’s Republic of China Regulations on Safety Management for Installation and Construction of Sorting and Conveying Equipment
the Law of People’s Republic of China on Prevention and Control of Occupational Regulations on Closed Management of Transit Depots
Guarding the Diseases Regulations on Management of Safety Supervisors
Safety Line Guidelines for Occupational Health and Safety Management Systems Regulations on Management of Safety Production DirectorsByelaw Governing Reporting Investigation and Handling of Production Safety Accidents Regulations on Safety Education and Training Management
Regulations on emergency response to production safety accidents Regulations on Hazard Source Identification Risk
Regulations on the administration of safe production of construction projects Assessment and Control Management
Guidelines for the Construction of Safety Production Management Systems in Postal and Regulations on Hazard Identification and Treatment Management
Express Delivery Enterprises Regulations on Safety Management of Hazardous Operations
Procedures for Safe Operation of Post
Property Safety Management Regulations
Regulations on Safety Management of Contractors
Regulations on Reporting and Investigation of Safety Accidents
Regulations on Emergency Response Management
Regulations on Reward Management for Self-Inspection of Illegal Prohibited Items
Regulations on Safety Management of Vehicles and Parcel Dispatch within the Depots
General Procurement Management System of SF Group
Measures for the Sourcing Management of the Procurement and Supply Chain Center
E-Commerce Law of the People’s Republic of China Measures for the Supplier Management of the Procurement and Supply Chain CenterBuilding a The Bidding Law of the People’s Republic of China Measures for the Contract Management of the Procurement and Supply Chain CenterResponsible Regulation on the Implementation of the Bidding Law of the People’s Republic of China Measures for the Management of Authorized Self-Purchasing of the Procurement and Supply Chain CenterSupply Chain Measures for the Administration of Non-bidding Methods of Government Procurement Measures for the Quality Management of the Procurement and Supply Chain CenterMeasures for the Order Delivery Management of the Procurement and Supply Chain Center
Measures for the Management of Procurement Information Acquisition
SF Supplier Code of Conduct
Articles of Association of the SF Public Welfare Foundation
Party Building System of the SF Public Welfare Foundation
Contributing to Charity Law of the People’s Republic of China Management System for “Three Major and One Large” Issues of the SF Public Welfare FoundationSocial Well-being Strategic Management System of the SF Public Welfare Foundation
Reporting System for Major Issues of the SF Public Welfare Foundation
Measures for the Administration of the SF Public Welfare Volunteer Service Team
135SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Chapters Chapter Names Compliance with Major Laws and Regulations SF’s Major Internal Regulations
Personal Information Protection Law of the People’s Republic of China
Pioneering Data Security Law of the People’s Republic of China Measures for the Safety Management of Application Recommendation Algorithms
Intelligent Logistics Interim Measures for the Review of Technology Ethics AI Safety and Compliance Management Standards
Ethical Norms for New-Generation Artificial Intelligence
Empowering
Global Expansion No relevant laws and regulations No relevant internal management systems
SF Business Voice Operation Management System
Reward and Punishment Rules for Customer Service
Customer Voice Classification Standard
Operation Process of Customer Service for Customer Consultation and Experience
Customer Service Operation Management Mechanism
Providing Premium Law of the People’s Republic of China on the Protection of Consumer Rights and Measures on the Acceptance of Customer Complaints
Services Interests Administrative Measures for Claims Settlement
Response Mechanism for Abnormal Events
Complaint Handling Procedure
Complaint Handling Upgrade Mechanism
Guidelines for the Control of Internet Public Opinions and Complaints
Services Abnormal Event Customer Service Process
Common Standards for Receiving Consignments
Regulations on Operation and Management of Battery-Contained Parcels
Postal Law of the People’s Republic of China Guidelines for Emergency Handling of Dangerous Goods on Board
Measures for the Administration of the Real-Name Receipt and Delivery of Mails and Provisions on the Management of “Three Systems” for Delivery Safety
Express Mails Provisions on the Administration of Prohibited Consignments
Securing Safety Supervision and Administration of Security of the Postal Industry Operation Procedures for Real-Name Pickup and Delivery
Delivery Measures for the Supervision and Administration of the Delivery Safety of the Postal Pickup and Delivery Inspection System
Industry Dangerous Goods Transportation Manual
Provisions on Articles Prohibited from Delivery Special Plan for the Control of Illegal and Prohibited Articles
Operation Specification in Safety Production of Express Service Regulations on the Management of “Three Systems” for Mails and Shipments
Reward Management Measures for Self-Inspection of Illegal and Prohibited Articles
Reward Mechanism for Self-Inspection of Illegal and Prohibited Articles
Anti-monopoly Law of the People’s Republic of China
Safeguarding Civil Code of the People’s Republic of China (Contract Part)
Delivery Security Regulation on the Administration of the Registration of Social Organizations
SF Group Association Membership Management Measures
The State Council about Accelerating and Promoting the Reform and Development of Management Measures for Participating in External Standard Development and Revision Projects
Trade Associations and Chambers of Commerce
136SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Key Performance Indicators
Table of Key Environmental Performance
202320242025
Indicator – Environment Unit SF (Excluding
KLN24) KLN Total
SF (Excluding KLN Total SF (Excluding KLN) KLN) KLN Total
GHG emissions
Total GHG emissions tCO2e 10014041.6 2444634.0 12458675.6 9463418.5 2987414.0 12450832.5 10425145.6 3085497.0 13510642.6
Scope 1 tCO2e 2660119.6 215018.0 2875137.6 3045612.0 116401.0 3162013.0 3362085.0 68869.0 3430954.0
Scope 2 tCO2e 1506403.4 79916.0 1586319.4 1328969.1 78409.0 1407378.1 1370808.9 82475.0 1453283.9
Scope 325 tCO2e 5847518.5 2149700.0 7997218.5 5088837.3 2792604.0 7881441.3 5692251.6 2934153.0 8626404.6
––Category 1: Purchased goods and
services tCO2e 789970.4 N/A 789970.4 841927.1 N/A 841927.1 934932.4 20749.0 955681.4
––Category 2: Capital goods tCO2e 784312.5 N/A 784312.5 207868.0 N/A 207867.9 171275.7 8654.0 179929.7
––Category 3: Fuel and energy-related
activities tCO2e 1317499.8 N/A 1317499.8 1390234.7 N/A 1390234.7 1534746.2 36249.0 1570995.2
GHG
emissions ––Category 4: Upstream transportation
and distribution tCO2e 2781723.0 2149700.0 4931423.0 2512644.8 2792604.0 5305248.8 2820387.3 2864757.0 5685144.3
––Category 5: Waste generated in
operation tCO2e 3315.0 N/A 3315.0 1053.5 N/A 1053.5 1071.6 N/A 1071.6
––Category 6: Business trip tCO2e 22691.4 N/A 22691.4 41120.5 N/A 41120.5 29198.3 3744.0 32942.3
––Category 7: Employee commuting tCO2e 25148.9 N/A 25148.9 25339.4 N/A 25339.4 25752.0 N/A 25752.0
––Category 8: Upstream leased assets tCO2e 16673.6 N/A 16673.6 16899.5 N/A 16899.5 18573.0 N/A 18573.0
––Category 12: E nd-of-life treatment of
sold products tCO2e 10217.8 N/A 10217.8 3560.9 N/A 3560.9 2837.3 N/A 2837.3
––Category 15: Investment tCO2e 95966.2 N/A 95966.2 48189.0 N/A 48189.0 157900.9 N/A 157900.9
GHG emission intensity tCO2e/million revenue (RMB) 47.1 53.4 48.2 41.2 54.7 43.8 40.7 59.6 43.8
GHG GHG removal from newly planted trees tCO2e 4.6 9.0 13.6 5.6 8.0 13.6 3.2 6.0 9.2
emissions
removal Purchased carbon credits tCO2e N/A N/A N/A 44.0 N/A 44.0 197.0 N/A 197.0
Emission
Nitrogen oxide emissions ton 27246.4 1907.0 29153.4 25045.2 528.0 25573.2 25528.5 242.0 25770.5
Sulfur oxide emission ton 18.2 3.0 21.2 17.4 0.8 18.2 30.7 0 30.7
Particle emissions ton 2021.2 118.0 2139.2 2011.1 35.0 2046.1 2120.6 19.0 2139.6
24 KLN Logistics Group Limited a company listed on the Main Board of the Hong Kong Stock Exchange (stock code: 0636.HK) and a holding subsidiary of the Company.
25 The Company continuously improves the statistics for various categories of Scope 3 greenhouse gas emissions. In 2025 emissions from Scope 3 Categories 9 10 11 13 and 14 were not applicable to SF’s primary business operations and are therefore not presented
in this table of Environmental Key Performance.
137SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
202320242025
Indicator – Environment Unit SF (Excluding SF (Excluding SF (Excluding
KLN24) KLN Total KLN) KLN Total KLN) KLN Total
Energy consumption26
MWh 9041514.5 1005665.0 10047179.5 10198866.7 544719.0 10743585.7 11109619.0 422951.0 11532570.0
Total non-renewable energy consumption
tce 1110586.4 123527.7 1234114.2 1252746.2 66908.9 1319655.1 1364615.6 51951.9 1416567.5
MWh 40871.4 13424.0 54295.4 87992.5 12205.0 100197.5 22101.7 9663.0 31764.7
Gasoline consumption
tce 5020.3 1648.9 6669.2 10808.3 1499.2 12307.4 2714.8 1186.92 3901.7
MWh 3570352.6 780440.0 4350792.6 3393132.1 350675.0 3743807.1 3193307.1 221505.0 3414812.1
Diesel consumption
tce 438553.2 95862.9 534416.1 416784.9 43074.1 459858.9 392240.0 27207.88 419447.9
MWh 5430290.5 N/A 5430290.5 6717577.2 N/A 6717577.2 7894210.2 N/A 7894210.2
Non- Aviation kerosene consumption tce 667012.9 N/A 667012.9 825132.8 N/A 825132.8 969660.9 N/A 969660.9
renewable
energy27 MWh N/A 909.0 909.0 165.0 1399.0 1564.0 N/A 1166.0 1166.0Natural gas consumption
tce N/A 111.7 111.7 20.3 171.8 192.1 N/A 143.2 143.2
MWh N/A 2112.0 2112.0 N/A 1870.0 1870.0 N/A 2147.0 2147.0
Liquefied petroleum gas consumption
tce N/A 259.4 259.4 N/A 229.7 229.7 N/A 263.7 263.7
MWh N/A 204405.0 204405.0 N/A 174356.0 174356.0 N/A 186473.0 186473.0
Compressed natural gas consumption
tce N/A 25107.5 25107.5 N/A 21416.5 21416.5 N/A 22904.8 22904.8
MWh N/A 4375.0 4375.0 N/A 4214.0 4214.0 N/A 1997.0 1997.0
Gas and oil consumption
tce N/A 537.4 537.4 N/A 517.6 517.6 N/A 245.3 245.3
Total renewable energy consumption MWh 15712.0 1402.0 17114.0 44073.7 3837.0 47910.7 61904.4 4349.0 66253.4
Renewable
energy Solar energy consumption MWh 15712.0 1378.0 17090.0 44073.7 3581.0 47654.7 61904.4 4041.0 65945.4
Hydropower consumption28 MWh N/A 24.0 24.0 N/A 256.0 256.0 N/A 308.0 308.0
MWh 2172682.9 167799.0 2340481.9 2081160.5 145144.0 2226304.5 2167698.2 140814.0 2308512.2
Indirect Purchased Electricity consumption tce 266874.8 20611.1 287485.8 255632.9 17828.3 273461.2 266262.5 17296.45 283558.9
energy
consumption MWh 675056.5 N/A 675056.5 544569.2 N/A 544569.2 557142.1 N/A 557142.1Purchased heat
tce 82918.5 N/A 82918.5 66890.5 N/A 66890.5 68434.8 N/A 68434.8
Total energy sold MWh 57.2 479.0 536.2 1330.3 836.0 2166.3 1930.9 881.0 2811.9
MWh 11229852.2 1174387.0 12404239.2 12322770.7 692864.0 13015634.7 13337290.7 567233.00 13904523.7
Total energy consumption
tce 1379384.1 144252.2 1523636.3 1513629.4 85105.8 1598735.2 1638244.8 69674.31 1707919.1
MWh/million
revenue (RMB) 52.8 25.6 48.0 53.6 12.7 45.8 52.0 10.9 45.1
Energy consumption intensity
tce/million
revenue (RMB) 6.5 3.2 5.9 6.6 1.6 5.6 6.4 1.3 5.5
26 The calculation methodology for 2025 energy consumption and the calorific value conversion factors were applied in accordance with the Guidance on Environmental Key Performance Indicators Disclosure (Appendix 2 of the Hong Kong Exchanges and Clearing’s
Environmental Social and Governance Reporting Guide) and the General Rules for Calculation of Total Production Energy Consumption (GB/T 2589-2020). The adopted calorific value conversion factors are 277.778 kWh/GJ and 0.03412 kgce/MJ.
27 Due to differences in business models certain metrics within non-renewable energy consumption are not applicable and are therefore shown as N/A.
28 Due to differences in business models this indicator is not applicable to SF (excluding KLN) and is therefore shown as N/A.
138SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
202320242025
Indicator – Environment Unit SF (Excluding KLN Total SF (Excluding KLN Total SF (Excluding KLN24) KLN) KLN) KLN Total
Use of water resources
Water withdraw ton 1601051.4 1042625.0 2643676.4 2148565.7 747469.0 2896034.7 3133844.0 586543.0 3720387.0
Water withdraw intensity ton/million revenue (RMB) 7.5 22.8 10.2 9.4 13.7 10.2 12.2 11.3 12.1
Waste
Non-hazardous waste29 ton 155214.6 20113.0 175327.6 161732.3 6345.0 168077.3 228693.9 6707.0 235400.9
Non-hazardous waste intensity ton/million revenue (RMB) 0.7 0.4 0.7 0.7 0.1 0.6 0.9 0.1 0.8
Hazardous waste ton N/A 54.0 54.0 N/A30 95.0 95.0 N/A 185.0 185.0
Hazardous waste intensity ton/million revenue (RMB) N/A 0.0012 0.0002 N/A 0.0017 0.0003 N/A 0.004 0.001
Amount of recycled waste31 ton N/A N/A N/A 12.7 0 12.7 26.8 0 26.8
Packaging materials
Total use of packaging materials ton 477113.8 5672.0 482785.8 509788.8 3822.0 513610.8 560262.0 3473.00 563735.0
Express envelope ton 73960.0 N/A 73960.0 62496.8 N/A 62496.8 60955.2 N/A 60955.2
Waybill ton 14257.4 N/A 14257.4 17011.0 N/A 17011.0 16689.2 N/A 16689.2
Use of Carton ton 266797.6 4539.0 271336.6 289326.0 2748.0 292074.0 322477.6 2419.0 324896.6
packaging
materials32 Plastic bags ton 51729.6 1100.0 52829.6 63431.5 1035.0 64466.5 76038.5 1051.0 77089.5
Scotch tapes ton 26013.0 N/A 26013.0 28721.9 N/A 28721.9 34941.5 N/A 34941.5
Foaming types of fillers ton 12884.5 33.0 12917.5 17388.5 39.0 17427.5 20524.3 3.0 20527.3
Inflatable type of fillers ton 31471.8 N/A 31471.8 31413.0 N/A 31413.0 28635.8 N/A 28635.8
Environmental compliance
The amount of penalties for significant administrative
violations or criminal liabilities imposed by environmental
protection and other relevant departments due to RMB10000 0 0 0 0 0 0 0 0 0
environmental incidents during the reporting period
29 Due to internal discrepancies in understanding statistical scopes the 2024 data has been restated based on the latest statistical scopes and verification results.
30 SF (excluding KLN) does not generate hazardous waste in its own operations and is therefore shown as N/A.
31 Due to internal discrepancies in understanding statistical scopes the 2024 data has been restated based on the latest statistical scopes and verification results.
32 Due to differences in business models some indicators in the usage of packaging materials are not applicable and are therefore shown as N/A.
139SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Table of Key Social Performance Indicator – Society Unit 2023 2024 2025
Aged below 30 % 26.4 24.5 22.9
By age35 Aged 30-50 % 12.1 12.6 10.2
Indicator – Society Unit 2023 2024 2025 Aged over 50 % 7.4 8.2 5.7
Employment Mainland China % 15.2 13.7 12.8
Number of Workforce Hong Kong Macao and
Total workforce Person 746577 739542 730885 By region36 Taiwan % 22.5 23.6 14.4
Male Person 627408 626242 614528
By gender Overseas % 43.3 83.1 40.4
Female Person 119169 113300 116357 Workforce rights and interests
Aged below 30 Person 226221 232004 208037 Percentage of workforce covered by collective agreement % 100 100 100
By age Aged 30-50 Person 508251 492255 504466 Employee satisfaction37 % 87.8 92.3 86.1
Aged over 50 Person 12105 15283 18382 Health and safety
Management (including
primary-level managers) Person 26025 25940 26430 The number of working days lost due to injury Day 34282 39228 39721
By job functions Professional Person 43725 41069 41031 Deaths due to work-related injuries Person 58 37 35
Primary-level Person 676827 672303 663424 Death rate due to work-related injuries38 Per hundred workforce 0.0078 0.0050 0.0048Mainland China Person 711666 707042 699392
By region Hong Kong Macao and Lost-time injury rate39
Per million 2.35 2.07 1.92
Taiwan Person 7176 6662 6519 hours worked
Overseas Person 27735 25838 24974 Number of aviation accidents Case 0 0 0
Full-time Person 647728 629917 624502
By job type Training and development
Part-time Person 98849 109625 106383
Number of new hires Person 305817 215118 215606 Total number of training
40 Session 34846 39407 131963
Number of truck drivers Person 30034 32566 30504 sessions
Gender diversity among workforce Training & development
Number of new female hires Person 53894 41382 44578 expenditure RMB10000 7887 10842 14857
Number of departures
Number of trained workforce
Total departures Person 122037 119993 100370
Total number of trained workforce Person 724277 711311 706252
Turnover rate33 % 16.3 16.2 13.7
Male Person 612206 605503 596253
Male % 15.9 15.6 13.2 By gender
By gender34 Female Person 112071 105820 109999
Female % 18.7 19.4 16.3
Management (including
primary-level managers) Person 23053 23725 23699
By job functions Professional Person 37565 39189 38063
Primary-level Person 663709 647448 644490
33 Turnover rate = Total departures ÷ Total workforce 37 In 2025 the Company upgraded its employee satisfaction survey system evolving from a single-dimension satisfaction
34 Turnover rate by gender = Number of departures of male or female ÷ Number of male or female survey to a multi-dimensional “Employee Well-being Index Diagnosis” encompassing six dimensions: Culture Engagement
35 Turnover rate by age = Number of departures by age ÷ Number of workforce by age Management Efficiency Development and Rewards. The 2025 data is calculated based on this new system and is not directly
36 Turnover rate by region = Number of departures by region ÷ Number of workforce by region comparable with historical figures. This upgrade aims to provide a more comprehensive and accurate reflection of employee
sentiment and organizational health.
38 Death rate due to work-related injuries = Number of workforce deaths due to work-related injuries ÷ Total workforce × 100
39 Lost-time injury rate = Number of lost man-hours accidents ÷ Number of hours actually worked × 1000000
40 In 2025 the statistical scope of training sessions (KLN) was adjusted from the Hong Kong region to a global scope compared
with 2024 resulting in a significant increase in the data
140SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Indicator – Society Unit 2023 2024 2025 Indicator – Society Unit 2023 2024 2025
Percentage of trained workforce % 97.0 96.2 96.6 Anti-corruption training
Male % 84.5 85.1 84.4 Total hours of anti-corruption training Hour 70073 62326 98440
By gender41
Female % 15.5 14.9 15.6 Number of workforce involved in anti-corruption training Person 121701 59891 170569
Management (including % 3.2 3.3 3.4 Number of directors involved in anti-corruption training Person 7 7 6primary-level managers)
By job functions42 Percentage of directors participating in anti-corruption Professional % 5.2 5.5 5.4 training % 100 100 100
Primary-level % 91.6 91.0 91.3 New
Training hours Number of management involved in anti-corruption training Person indicators 3714 4997
Total training hours Hour 5644982 6768687 6418522 added in
2024
Average training hours per trained workforce Hour 7.8 9.2 8.8
Community investment
Male Hour 7.8 9.2 8.8
By gender43 Charitable donations RMB10000 10590 7177 3374
Female Hour 7.9 9.0 8.8
Number of volunteer activity participations Person-time 8921 7662 8569
Management (including
primary-level managers) Hour 7.1 8.6 8.7 Total hours of volunteer activity Hour 35308 35671 50183
By job functions44 Professional Hour 7.8 10.5 10.5 Innovation driven
Primary-level Hour 7.6 9.1 8.7 The amount of R&D investment RMB10000 336329 309371 295975
Supply chain management Percentage of R&D investment to operating revenue % 1.3 1.1 1.0
Total number of suppliers45 Company 10932 3881 3770 Number of R&D personnel Person 4637 4193 4007
Mainland China Company 10271 3872 3754 Number of valid patents during the reporting period Patent 2003 2252 2459
Hong Kong Macao and Number of invention patent applications during the reporting By region Company 51 1 6 period Patent 337 263 338Taiwan
Overseas Company 519 8 10 Number of granted invention patents during the reporting Patent 188 314 221
Product liability period
Number of products and service related valid complaints Number of invention patents applied to the principal Patent 730 783 853
received46 Case 2195 11815 254139 business
Customer complaint resolution rate % 100 100 100 Data security and privacy protection
Number of major safety and quality liability accidents related Number of data security incidents that occurred during the Case 0 0 0
to products and services that occurred during the reporting Case 0 0 0 reporting period
period Specific amounts involved in data security incidents RMB10000 0 0 0
The amount of damages involved in major safety and quality Number of customer privacy breaches that occurred during
liability accidents related to products and services that RMB10000 0 0 0 the reporting period Case 0 0 0
occurred during the reporting period
The specific amount involved in the customer privacy
Anti-corruption breach incident RMB10000 0 0 0
The number of legal proceedings brought and concluded Case 4 0 0 Anti-monopoly and anti-unfair competitionagainst the Company or its workforce for corruption
Number of lawsuits or major administrative penalties caused
by the company’s monopoly and unfair competition behavior Case 0 0 0
during the reporting period
The amount involved in lawsuits or major administrative
penalties caused by the company’s monopoly and unfair RMB10000 0 0 0
competition behavior during the reporting period
41 Percentage of trained workforce by gender = Number of trained male or female ÷ Total number of trained workforce
42 Percentage of trained workforce by job functions = Number of trained workforce by job functions ÷ Total number of trained workforce
43 Average training hours per trained workforce by gender = Total training hours of male or female ÷ Number of trained male or female 45 As the Company refined its statistical scope starting in 2024 to include only suppliers with actual business transactions during
44 Average training hours per trained workforce by job functions = Total training hours by job functions ÷ Number of trained the reporting period the total number of suppliers for 2024 and 2025 is not directly comparable with previous years. This
workforce by job functions refinement aims to more accurately represent the scale of active suppliers.
46 1) Data Source: Number of valid complaints from the State Post Bureau Complaints Service Platform; 2) Scope Explanation:
Due to adjustments in postal complaint handling rules from late 2024 to 2025 there was a significant change in the statistical
scope for the 2025 complaint data rendering it not directly comparable with historical annual data.
141SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Sustainability Report Content Index
Index to the ESG Reporting Code of The Stock Exchange of Hong Kong Limited
Introduction
Aspects General Disclosures and
KPIs Description Location
Introduction
The issuer may seek independent assurance to strengthen the credibility of the ESG information disclosed. Where independent
Overall Approach 9 assurance is obtained the issuer should describe the level scope and processes adopted for the assurance given clearly in the Assurance Statement
ESG report.Mandatory Disclosure Requirements
A statement from the board containing the following elements:
(i) a disclosure of the board’s oversight of ESG issues;
Governance Structure 13 (ii) the board’s ESG management approach and strategy including the process used to evaluate prioritise and manage material ESG-related issues (including risks to the issuer’s businesses); and Sustainability Governance
(iii) how the board reviews progress made against ESG-related goals and targets with an explanation of how they relate to the
issuer’s businesses.Reporting Principles 14 A description of or an explanation on the application of the following Reporting Principles in the preparation of the ESG report: Materiality Quantitative Consistency. About this Report
A narrative explaining the reporting boundaries of the ESG report and describing the process used to identify which entities or
Reporting Boundary 15 operations are included in the ESG report. If there is a change in the scope the issuer should explain the difference and reason About this Report
for the change.Environmental
Aspects General Disclosures and
KPIs Description Location
Aspect A1: Emissions
Relating to air emissions discharges into water and land and generation of hazardous and non-hazardous waste.(a) the policies; and
General Disclosure Information on: Practicing Green Operations(b) compliance with relevant laws and regulations that have a significant impact on the issuer Policy List
Note: Air emissions include NOx SOx and other pollutants regulated under national laws and regulations. Hazardous wastes
are those defined by national regulations.KPI A1.1 The types of emissions and respective emissions data. Key Performance Indicators
KPI A1.3 Total hazardous waste produced (in tonnes) and where appropriate intensity (e.g. per unit of production volume per facility). Key Performance Indicators
KPI A1.4 Total non-hazardous waste produced (in tonnes) and where appropriate intensity (e.g. per unit of production volume per facility). Key Performance Indicators
KPI A1.5 Description of emission target(s) set and steps taken to achieve them. Practicing Green Operations
KPI A1.6 Description of how hazardous and non-hazardous wastes are handled and a description of reduction target(s) set and steps taken to achieve them. Practicing Green Operations
142SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Aspects General Disclosures and
KPIs Description Location
Aspect A2: Use of Resources
Policies on the efficient use of resources including energy water and other raw materials.General Disclosure
Note: Resources may be used in production in storage transportation in buildings electronic equipment etc. Practicing Green Operations
KPI A2.1 Direct and/or indirect energy consumption by type (e.g. electricity gas or oil) in total (kWh in ’000s) and intensity (e.g. per unit
Policy List
of production volume per facility).KPI A2.2 Water consumption in total and intensity (e.g. per unit of production volume per facility). Key Performance Indicators
KPI A2.3 Description of energy use efficiency target(s) set and steps taken to achieve them. Practicing Green Operations
KPI A2.4 Description of whether there is any issue in sourcing water that is fit for purpose water efficiency target(s) set and steps taken to achieve them. Practicing Green Operations
KPI A2.5 Total packaging material used for finished products (in tonnes) and if applicable with reference to per unit produced. Key Performance Indicators
Aspect A3: The Environment and Natural Resources
General Disclosure Policies on minimising the issuer’s significant impacts on the environment and natural resources. Practicing Green OperationsPolicy List
Practicing Green Operations
KPI A3.1 Description of the significant impacts of activities on the environment and natural resources and the actions taken to manage them. Protecting the Ecological Environment
Developing Green Logistics
Social
Aspects General Disclosures and
KPIs Description Location
Aspect B1: Employment
relating to compensation and dismissal recruitment and promotion working hours rest periods equal opportunity diversity
anti-discrimination and other benefits and welfare.General Disclosure Construction of Talented Team(a) the policies; and Protecting Employee Rights and Interests
(b) compliance with relevant laws and regulations that have a significant impact on the issuer
KPI B1.1 Total workforce by gender employment type (for example full – or part-time) age group and geographical region. Key Performance Indicators
KPI B1.2 Employee turnover rate by gender age group and geographical region. Key Performance Indicators
Aspect B2: Health and Safety
relating to providing a safe working environment and protecting employees from occupational hazards.General Disclosure (a) the policies; and Guarding the Safety LinePolicy List
(b) compliance with relevant laws and regulations that have a significant impact on the issuer
KPI B2.1 Number and rate of work-related fatalities occurred in each of the past three years including the reporting year. Key Performance Indicators
KPI B2.2 Lost days due to work injury. Key Performance Indicators
KPI B2.3 Description of occupational health and safety measures adopted and how they are implemented and monitored. Guarding the Safety Line
143SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Aspects General Disclosures and
KPIs Description Location
Aspect B3: Development and Training
Policies on improving employees’ knowledge and skills for discharging duties at work. Description of training activities.General Disclosure Construction of Talented Team
Note: Training refers to vocational training. It may include internal and external courses paid by the employer.KPI B3.1 The percentage of employees trained by gender and employee category (e.g. senior management middle management). Key Performance Indicators
KPI B3.2 The average training hours completed per employee by gender and employee category. Key Performance Indicators
Aspect B4: Labour Standards
relating to preventing child and forced labour.General Disclosure (a) the policies; and
(b) compliance with relevant laws and regulations that have a significant impact on the issuer Protecting Employee Rights and Interests
KPI B4.1 Description of measures to review employment practices to avoid child and forced labour.KPI B4.2 Description of steps taken to eliminate such practices when discovered.Aspect B5: Supply Chain Management
General Disclosure Policies on managing environmental and social risks of the supply chain. Building a Responsible Supply ChainPolicy List
KPI B5.1 Number of suppliers by geographical region. Key Performance Indicators
KPI B5.2 Description of practices relating to engaging suppliers number of suppliers where the practices are being implemented and how Building a Responsible Supply Chainthey are implemented and monitored. Policy List
KPI B5.3 Description of practices used to identify environmental and social risks along the supply chain and how they are implemented and monitored. Building a Responsible Supply Chain
KPI B5.4 Description of practices used to promote environmentally preferable products and services when selecting suppliers and how they are implemented and monitored. Building a Responsible Supply Chain
Aspect B6: Product Responsibility
relating to health and safety advertising labelling and privacy matters relating to products and services provided and methods
of redress. Providing Premium Services
General Disclosure (a) the policies; and Ensuring Information SecurityPolicy List
(b) compliance with relevant laws and regulations that have a significant impact on the issuer
The Company’s scope of business as a logistics and transport
KPI B6.1 Percentage of total products sold or shipped subject to recalls for safety and health reasons. service provider does not involve the health and safety
implications of its products and services.KPI B6.2 Number of products and service related complaints received and how they are dealt with. Key Performance Indicators
KPI B6.3 Description of practices relating to observing and protecting intellectual property rights. Upholding Business Ethics
The Company’s scope of business as a logistics and transport
KPI B6.4 Description of quality assurance process and recall procedures. service provider does not involve quality checking processes
or product recall procedures.KPI B6.5 Description of consumer data protection and privacy policies and how they are implemented and monitored. Ensuring Information SecurityPolicy List
144SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Aspects General Disclosures and
KPIs Description Location
Aspect B7: Anti-corruption
relating to bribery extortion fraud and money laundering.General Disclosure (a) the policies; and Upholding Business EthicsPolicy List
(b) compliance with relevant laws and regulations that have a significant impact on the issuer
KPI B7.1 Number of concluded legal cases regarding corrupt practices brought against the issuer or its employees during the reporting period and the outcomes of the cases. Key Performance Indicators
KPI B7.2 Description of preventive measures and whistle-blowing procedures and how they are implemented and monitored. Upholding Business Ethics
KPI B7.3 Description of anti-corruption training provided to directors and staff. Upholding Business EthicsKey Performance Indicators
Aspect B8: Community Investment
General Disclosure Policies on community engagement to understand the needs of the communities where the issuer operates and to ensure its activities take into consideration the communities’ interests. Contributing to Social Well-being
KPI B8.1 Focus areas of contribution (e.g. education environmental concerns labour needs health culture sport). Contributing to Social Well-being
KPI B8.2 Resources contributed (e.g. money or time) to the focus area. Contributing to Social Well-beingKey Performance Indicators
Part D: Climate-related Disclosures
Section Description Location
Governance
the governance body(s) (which can include a board committee or equivalent body charged with governance) or individual(s)
responsible for oversight of climate-related risks and opportunities. Specifically the issuer shall identify that body(s) or individual(s) Addressing Climate Change
and disclose information about:
(i) how the body(s) or individual(s) determines whether appropriate skills and competencies are available or will be developed
to oversee strategies designed to respond to climate-related risks and opportunities; Addressing Climate Change
19(a) (ii) how and how often the body(s) or individual(s) is informed about climate-related risks and opportunities; Addressing Climate Change
(iii) how the body(s) or individual(s) takes into account climate-related risks and opportunities when overseeing the issuer’s
strategy its decisions on major transactions and its risk management processes and related policies including whether Addressing Climate Change
the body(s) or individual(s) has considered trade-offs associated with those risks and opportunities;
(iv) how the body(s) or individual(s) oversees the setting of and monitors progress towards targets related to climate-related
risks and opportunities (see paragraphs 37 to 40) including whether and how related performance metrics are included in Addressing Climate Change
remuneration policies (see paragraph 35); and
management’s role in the governance processes controls and procedures used to monitor manage and oversee climate-related
risks and opportunities including information about: Addressing Climate Change
19(b) (i) whether the role is delegated to a specific management-level position or management-level committee and how oversight is exercised over that position or committee; and Addressing Climate Change
(ii) whether management uses controls and procedures to support the oversight of climate-related risks and opportunities and
if so how these controls and procedures are integrated with other internal functions. Addressing Climate Change
145SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Section Description Location
Strategy
20(a) describe climate-related risks and opportunities that could reasonably be expected to affect the issuer’s cash flows its access to finance or cost of capital over the short medium or long term; Addressing Climate Change
20(b) explain for each climate-related risk the issuer has identified whether the issuer considers the risk to be a climate-related physical risk or climate-related transition risk; Addressing Climate Change
20(c) specify for each climate-related risk and opportunity the issuer has identified over which time horizons – short medium or long term – the effects of each climate-related risk and opportunity could reasonably be expected to occur; and Addressing Climate Change
20(d) explain how the issuer defines ‘short term’ ‘medium term’ and ‘long term’ and how these definitions are linked to the planning horizons used by the issuer for strategic decision-making. Addressing Climate Change
21(a) a description of the current and anticipated effects of climate-related risks and opportunities on the issuer’s business model and value chain; and Addressing Climate Change
21(b) a description of where in the issuer’s business model and value chain climate-related risks and opportunities are concentrated (for example geographical areas facilities and types of assets). Addressing Climate Change
information about how the issuer has responded to and plans to respond to climate-related risks and opportunities in its strategy
and decision-making including how the issuer plans to achieve any climate-related targets it has set and any targets it is required Addressing Climate Change
to meet by law or regulation. Specifically the issuer shall disclose information about:
(i) current and anticipated changes to the issuer’s business model including its resource allocation to address climate-related
risks and opportunities; Addressing Climate Change
22(a) (ii) current and anticipated adaptation and mitigation efforts (whether direct or indirect); Addressing Climate Change
(iii) any climate-related transition plan the issuer has (including information about key assumptions used in developing its
transition plan and dependencies on which the issuer’s transition plan relies) or an appropriate negative statement where Addressing Climate Change
the issuer does not have a climate-related transition plan; and
(iv) how the issuer plans to achieve any climate-related targets (including any greenhouse gas emissions targets (if any))
described in accordance with paragraphs 37 to 40; and Addressing Climate Change
22(b) information about how the issuer is resourcing and plans to resource the activities disclosed in accordance with paragraph 22(a). Addressing Climate Change
23 An issuer shall disclose information about the progress of plans disclosed in previous reporting periods in accordance with paragraph 22(a). Addressing Climate Change
24(a) how climate-related risks and opportunities have affected its financial position financial performance and cash flows for the reporting period; and Addressing Climate Change
24(b) the climate-related risks and opportunities identified in paragraph 24(a) for which there is a significant risk of a material adjustment During the reporting period the Company continued to identify within the next annual reporting period to the carrying amounts of assets and liabilities reported in the related financial statements. and assess climate-related risks and opportunities. As the
how the issuer expects its financial position to change over the short medium and long term given its strategy to manage financial impacts on the financial statements for the next
climate-related risks and opportunities taking into consideration: reporting year have yet to be independently quantified and
25(a) the methodologies for measuring such impacts are still being (i) its investment and disposal plans; and developed and refined the Company has not made separate
(ii) its planned sources of funding to implement its strategy; and disclosure in this respect for the time being in order to ensure
the accuracy and effectiveness of its disclosures and avoid any
potential misinterpretation by stakeholders. Going forward the
25(b) how the issuer expects its financial performance and cash flows to change over the short medium and long term given its Company will continue to improve its framework for identifying strategy to manage climate-related risks and opportunities. and measuring climate-related financial impacts and enhance
the quality and transparency of its climate-related disclosures.the issuer’s assessment of its climate resilience as at the reporting date which shall enable an understanding of: Addressing Climate Change
(i) the implications if any of the issuer’s assessment for its strategy and business model including how the issuer would
26(a) need to respond to the effects identified in the climate-related scenario analysis;
Addressing Climate Change
(ii) the significant areas of uncertainty considered in the issuer’s assessment of its climate resilience; and Addressing Climate Change
(iii) the issuer’s capacity to adjust or adapt its strategy and business model to climate change over the short medium or long term; Addressing Climate Change
146SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Section Description Location
how and when the climate-related scenario analysis was carried out including: Addressing Climate Change Addressing Climate Change
(i) information about the inputs used including:
(1) which climate-related scenarios the issuer used for the analysis and the sources of such scenarios;
(2) whether the analysis included a diverse range of climate-related scenarios;
(3) whether the climate-related scenarios used for the analysis are associated with climate-related transition risks or
climate-related physical risks;
(4) whether the issuer used among its scenarios a climate-related scenario aligned with the latest international
26(b) agreement on climate change;
Addressing Climate Change
(5) why the issuer decided that its chosen climate-related scenarios are relevant to assessing its resilience to climate-
related changes developments or uncertainties;
(6) time horizons the issuer used in the analysis; and
(7) what scope of operations the issuer used in the analysis (for example the operation locations and business units
used in the analysis);
(ii) the key assumptions the issuer made in the analysis; and Addressing Climate Change
(iii) the reporting period in which the climate-related scenario analysis was carried out. Addressing Climate Change
Risk Management
the processes and related policies it uses to identify assess prioritise and monitor climate-related risks including information
about: Addressing Climate Change
(i) the inputs and parameters the issuer uses (for example information about data sources and the scope of operations covered
in the processes); Addressing Climate Change
(ii) whether and how the issuer uses climate-related scenario analysis to inform its identification of climate-related risks; Addressing Climate Change
27(a) (iii) how the issuer assesses the nature likelihood and magnitude of the effects of those risks (for example whether the issuer
considers qualitative factors quantitative thresholds or other criteria); Addressing Climate Change
(iv) whether and how the issuer prioritises climate-related risks relative to other types of risks; Addressing Climate Change
(v) how the issuer monitors climate-related risks; and Addressing Climate Change
(vi) whether and how the issuer has changed the processes it uses compared with the previous reporting period; Addressing Climate Change
27(b) the processes the issuer uses to identify assess prioritise and monitor climate-related opportunities (including information about whether and how the issuer uses climate-related scenario analysis to inform its identification of climate-related opportunities); and Addressing Climate Change
27(c) the extent to which and how the processes for identifying assessing prioritising and monitoring climate-related risks and opportunities are integrated into and inform the issuer’s overall risk management process. Addressing Climate Change
Metrics and Targets
28(a) Scope 1 greenhouse gas emissions; Addressing Climate Change
28(b) Scope 2 greenhouse gas emissions; and Addressing Climate Change
28(c) Scope 3 greenhouse gas emissions. Addressing Climate Change
measure its greenhouse gas emissions in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting
29(a) Standard (2004) unless required by a jurisdictional authority or another exchange on which the issuer is listed to use a different Key Performance Indicators
method for measuring greenhouse gas emissions;
disclose the approach it uses to measure its greenhouse gas emissions including: Addressing Climate Change
(i) the measurement approach inputs and assumptions the issuer uses to measure its greenhouse gas emissions; Addressing Climate Change
29(b) (ii) the reason why the issuer has chosen the measurement approach inputs and assumptions it uses to measure its greenhouse
gas emissions; and Addressing Climate Change
(iii) any changes the issuer made to the measurement approach inputs and assumptions during the reporting period and the
reasons for those changes; Addressing Climate Change
147SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Section Description Location
for Scope 2 greenhouse gas emissions disclosed in accordance with paragraph 28(b) disclose its location-based Scope
29(c) 2 greenhouse gas emissions and provide information about any contractual instruments that is necessary to enable an Addressing Climate Change
understanding of the issuer’s Scope 2 greenhouse gas emissions; and Key Performance Indicators
for Scope 3 greenhouse gas emissions disclosed in accordance with paragraph 28(c) disclose the categories included within the
29(d) issuer’s measure of Scope 3 greenhouse gas emissions in accordance with the Scope 3 categories described in the Greenhouse Addressing Climate Change
Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011). Key Performance Indicators
30 An issuer shall disclose the amount and percentage of assets or business activities vulnerable to climate-related transition risks. During the reporting period the Company continued to
identify and assess climate-related risks and opportunities.
31 An issuer shall disclose the amount and percentage of assets or business activities vulnerable to climate-related physical risks. As the financial data relating to the impacts of climate
factors on relevant assets and business activities cannot
yet be reasonably compiled on the basis of the existing data
foundation and methodologies without incurring undue cost the
Company has not made separate disclosure in this respect for
the time being in order to ensure the accuracy and reliability
32 An issuer shall disclose the amount and percentage of assets or business activities aligned with climate-related opportunities. of its disclosures and avoid any potential misinterpretation by
stakeholders. Going forward the Company will progressively
refine its framework for accounting for climate-related financial
impacts and continue to enhance the completeness and
transparency of its disclosures.During the reporting period the Company continued to monitor
the impacts of climate-related risks and opportunities on its
capital expenditure financing and investment activities. As
the relevant data cannot yet be separately identified and
measured from the existing financial information and the
applicable methodologies for assessing such impacts are still
33 An issuer shall disclose the amount of capital expenditure financing or investment deployed towards climate-related risks and under development the Company has not made separate opportunities. disclosure in this respect for the time being in order to
ensure the accuracy and effectiveness of its disclosures and
avoid any potential misinterpretation by stakeholders. Going
forward the Company will continue to improve its framework
for identifying and measuring climate-related financial impacts
and progressively enhance the quality and completeness of the
relevant disclosures.
34(a) an explanation of whether and how the issuer is applying a carbon price in decision making (for example investment decisions During the reporting period the Company continued to monitor transfer pricing and scenario analysis); and developments in carbon emissions trading mechanisms in China
and overseas and actively explored the potential application
of internal carbon pricing in strategic decision-making. As the
Company’s current business has not been included in any
mandatory carbon emissions trading scheme and its internal
carbon pricing mechanism remains at a preliminary research
stage internal carbon pricing has not yet been formally applied
34(b) the price of each metric tonne of greenhouse gas emissions the issuer uses to assess the costs of its greenhouse gas emissions; to strategic or investment decision-making. Going forward the
Company will in line with policy developments and its own
low-carbon transition needs steadily advance the development
of methodologies for internal carbon pricing and related pilot
applications and continue to enhance the sophistication of its
climate risk management.
35 An issuer shall disclose whether and how climate-related considerations are factored into remuneration policy or an appropriate negative statement. This may form part of the disclosure under paragraph 19(a)(iv). Addressing Climate Change
An issuer is encouraged to disclose industry-based metrics that are associated with one or more particular business models
activities or other common features that characterise participation in an industry. In determining the industry-based metrics that
36 the issuer discloses an issuer is encouraged to refer to and consider the applicability of the industry-based metrics associated Air Freight & Logistics SASB Content Index
with disclosure topics described in the IFRS S2 Industry-based Guidance on implementing Climate-related Disclosures and other
industry-based disclosure requirements prescribed under other international ESG reporting frameworks.
148SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Section Description Location
An issuer shall disclose (a) the qualitative and quantitative climate-related targets the issuer has set to monitor progress towards
37 achieving its strategic goals; and (b) any targets the issuer is required to meet by law or regulation including any greenhouse Addressing Climate Change
gas emissions targets. For each target the issuer shall disclose:
37(a) the metric used to set the target; Addressing Climate Change
37(b) the objective of the target (for example mitigation adaptation or conformance with science-based initiatives); Addressing Climate Change
37(c) the part of the issuer to which the target applies (for example whether the target applies to the issuer in its entirety or only a part of the issuer such as a specific business unit or geographic region); Addressing Climate Change
37(d) the period over which the target applies; Addressing Climate Change
37(e) the base period from which progress is measured; Addressing Climate Change
37(f) milestones or interim targets (if any); Addressing Climate Change
37(g) if the target is quantitative whether the target is an absolute target or an intensity target; and Addressing Climate Change
37(h) how the latest international agreement on climate change including jurisdictional commitments that arise from that agreement has informed the target. Addressing Climate Change
38(a) whether the target and the methodology for setting the target has been validated by a third party; Addressing Climate Change
38(b) the issuer’s processes for reviewing the target; Addressing Climate Change
38(c) the metrics used to monitor progress towards reaching the target; and Addressing Climate Change
38(d) any revisions to the target and an explanation for those revisions. Addressing Climate Change
39 An issuer shall disclose information about its performance against each climate-related target and an analysis of trends or changes in the issuer’s performance. Addressing Climate Change
40(a) which greenhouse gases are covered by the target; Addressing Climate Change
40(b) whether Scope 1 Scope 2 or Scope 3 greenhouse gas emissions are covered by the target; Addressing Climate Change
whether the target is a gross greenhouse gas emissions target or a net greenhouse gas emissions target. If the issuer discloses
40(c) a net greenhouse gas emissions target the issuer is also required to separately disclose its associated gross greenhouse gas Addressing Climate Change
emissions target;
During the reporting period the Company did not adopt an
40(d) whether the target was derived using a sectoral decarbonisation approach; and industry decarbonisation approach in setting its climate-related
targets.the issuer’s planned use of carbon credits to offset greenhouse gas emissions to achieve any net greenhouse gas emissions
target. In explaining its planned use of carbon credits the issuer shall disclose:
(i) the extent to which and how achieving any net greenhouse gas emissions target relies on the use of carbon credits;
40(e) (ii) which third-party scheme(s) will verify or certify the carbon credits; During the reporting period the Company did not use carbon
(iii) the type of carbon credit including whether the underlying offset will be nature-based or based on technological carbon credits to offset GHG emissions.removals and whether the underlying offset is achieved through carbon reduction or removal; and
(iv) any other factors necessary to enable an understanding of the credibility and integrity of the carbon credits the issuer plans
to use (for example assumptions regarding the permanence of the carbon offset).
149SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Index to the Self-Regulatory Guidance for Listed Companies No. 17 – Sustainability Report (Trial) of the Shenzhen Stock Exchange
Disclosure Requirement Corresponding Provisions Location Disclosure Requirement
Corresponding
Provisions Location
Energy Utilization Environmental Compliance Management Article 33 Practicing Green Operations
Article 11 Addressing Climate Change Energy Utilization Article 35 Energy Utilization
Technological Innovation Water Resource Management Article 36 Green Operation
Article 12 Sustainability Governance Circular Economy Article 37 Advancing Circular Economy
Rural Revitalization Article 39 Rural Revitalization
Article 13 Materiality Assessment
Social Contributions Article 40 Public Welfare and Charity
Article 14 Materiality Assessment Innovation-Driven Article 42 Pioneering Intelligent Logistics
Article 15 Materiality Assessment Ethics in Science and Technology Article 43 Technology Ethics
Materiality Assessment Supply Chain Security and Resilience Article 45 Building a Responsible Supply Chain
Energy Utilization
Article 16 Equal Treatment of Small and Medium-sized Enterprises (SMEs) Article 46 Equal Treatment of Small and Medium-sized EnterprisesAddressing Climate Change
Technological Innovation Product and Service Safety and Article 47 Providing Premium Services
Materiality Assessment Quality Assurance Safeguarding Delivery Security
General Disclosure Energy Utilization Data Security and Customer Privacy
Article 17 Protection Article 48 Ensuring Information SecurityAddressing Climate Change
Technological Innovation Construction of Talented Team
Protecting Employee Rights and Interests
Materiality Assessment In accordance with the relevant laws and regulations
Energy Utilization of the PRC the Company does not fall within the
Article 18
Addressing Climate Change scope of production and operating entities in high-risk
Employee Article 50 industries or sectors as prescribed by the State and
Technological Innovation is therefore not subject to the mandatory requirement
to obtain work safety liability insurance. To enhance
Developing Green Logistics protection for employees and third parties the
Energy Utilization Company has procured employers’ liability insurance
and property public liability insurance.Addressing Climate Change
Facilitating Employee Voice Due Diligence Article 52 Protection of Employee Rights and Interests
Article 19
Safety Management System Stakeholder Engagement Article 53 Sustainability Governance
Supplier Management System Anti-Commercial Bribery and Anti-
Technological Innovation Corruption Article 55 Anti-Commercial Bribery and Anti-Corruption
Improving Customer Experience Anti-Unfair Competition Article 56 Anti-Monopoly and Anti-Unfair Competition
Addressing Climate Change Article 21-28 Addressing Climate Change Green Packaging / Green Packaging
Diversity and Inclusion / Diversity Equality and Inclusion
Pollutant Emissions Management Article 30 Green Operation
Safety Delivery and Transportation / Guarding the Safety Line
Waste Management Article 31 Green Operation Building a Green and Intelligent Developing Green Logistics
Ecosystem and Biodiversity Industrial Chain
/ Pioneering Intelligent Logistics
Article 32 Protecting the Ecological Environment
Conservation Corporate Governance / Standardizing Corporate Governance
150SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
GRI Standard Content Index
Statement of use SF referred to the GRI standards for preparation of the Report covering the period from
GRI Standard
Indicator No. GRI Standard Indicator Location/NoteJanuary 1 2025 to December 31 2025.
2-22 Statement on sustainable development strategy Sustainability Governance
GRI 1 used GRI 1: Foundation 2021
2-23 Policy commitments Sustainability Governance
2-24 Embedding policy commitments Sustainability Governance
GRI Standard
Indicator No. GRI Standard Indicator Location/Note 2-25 Processes to remediate negative impacts Protection of Employee Rights and Interests
GRI 2: General Disclosures 2021 2-26 Mechanisms for seeking advice and raising concerns Sustainability Governance
2-1 Organizational details About SFAbout this Report 2-27 Compliance with laws and regulations Policy List
2-2 Entities included in the organization’s sustainability reporting About this Report
2-28 Membership associations Promoting Industry Development
2-29 Approach to stakeholder engagement Sustainability Governance
2-3 Reporting period frequency and contact point About this Report
2-4 Restatements of information About this Report 2-30 Collective bargaining agreements Facilitating Employee Voice
2-5 External assurance Assurance Statement GRI 3: Material Topics 2021
About SF 3-1 Process to determine material topics Sustainability Governance
2-6 Activities value chain and other business
Building a Responsible Supply Chain 3-2 List of material topics Sustainability Governance
relationships Services: Leading with Digital Intelligence to Connect the Globe and Empower Overseas 3-3 Management of material topics Sustainability Governance
Expansion GRI 101: Biodiversity 2024
Construction of Talented Team 101-1 Policies to halt and reverse biodiversity loss Not Applicable
2-7 Employees Protecting Employee Rights and Interests
Key Performance Indicators Improving Environmental Management
101-2 Management of biodiversity impacts System
Construction of Talented Team Protecting the Ecological Environment
2-8 Workers who are not employees Protecting Employee Rights and Interests
Key Performance Indicators 101-3 Access and benefit-sharing Not Applicable
2-9 Governance structure and composition Standardizing Corporate Governance 101-4 Identification of biodiversity impacts Protecting the Ecological Environment
2-10 Nomination and selection of the highest governance Standardizing Corporate Governance 101-5 Locations with biodiversity impacts Protecting the Ecological Environmentbody 101-6 Direct drivers of biodiversity loss Not Applicable
2-11 Chair of the highest governance body Standardizing Corporate Governance
2-12 Role of the highest governance body in overseeing
101-7 Changes to the state of biodiversity Protecting the Ecological Environment
the management of impacts Standardizing Corporate Governance 101-8 Ecosystem services Green Operation
2-13 Delegation of responsibility for managing impacts Sustainability Governance GRI 102: Climate Change 2025
2-14 Role of the highest governance body in sustainability reporting Sustainability Governance
102-1 Transition plan for climate change mitigation Addressing Climate Change
102-2 Climate change adaptation plan Addressing Climate Change
2-15 Conflicts of interest Upholding Business EthicsBuilding a Responsible Supply Chain 102-3 Just transition Developing Green Logistics
2-16 Communication of critical concerns Sustainability Governance Practicing Green Operations
2-17 Collective knowledge of the highest governance
102-4 GHG emissions reduction targets and progress Addressing Climate Change
body Sustainability Governance 102-5 Scope 1 GHG emissions Key Performance Indicators
2-18 Evaluation of the performance of the highest governance body Please refer to the Company’s annual report
102-6 Scope 2 GHG emissions Key Performance Indicators
2-19 Remuneration policies Please refer to the Company’s annual report 102-7 Scope 3 GHG emissions Key Performance Indicators
2-20 Process to determine remuneration Please refer to the Company’s annual report 102-8 GHG emissions intensity Key Performance Indicators
2-21 Annual total compensation ratio Confidentiality Limits 102-9 GHG removals in the value chain Leading the Low-Carbon Transition
151SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
GRI Standard
Indicator No. GRI Standard Indicator Location/Note
GRI Standard
Indicator No. GRI Standard Indicator Location/Note
During the reporting period the Company 301-2 Recycled input materials used Green Packaging
102-10 Carbon credits did not use carbon credits to offset GHG 301-3 Reclaimed products and their packaging materials Green Packaging
emissions.GRI 303: Water and Effluents 2018
GRI 103: Energy 2025
303-1 Interactions with water as a shared resource Green Industrial Park
Improving Environmental Management
103-1 Energy policies and commitments System 303-2 Management of water discharge-related impacts Green Industrial Park
Energy Utilization 303-3 Water withdrawal Key Performance Indicators
103-2 Energy consumption and self-generation within the Key Performance Indicators 303-4 Water discharge Key Performance Indicatorsorganization 303-5 Water consumption Key Performance Indicators
103-3 Upstream and downstream energy consumption Not Applicable GRI 305: Emissions 2016
103-4 Energy intensity Key Performance Indicators 305-6 Emissions of ozone-depleting substances (ODS) Not Applicable
103-5 Reduction in energy consumption Developing Green LogisticsEnergy Utilization 305-7 Nitrogen oxides (NOx) sulfur oxides (SOx) and other significant air emissions Key Performance Indicators
GRI 201: Economic Performance 2016
GRI 306: Waste 2020
201-1 Direct economic value generated and distributed Please refer to the Company's annual report
Waste generation and significant waste-related
201-3 Defined benefit plan obligations and other retirement
306-1 Green Operation
plans Protecting Employee Rights and Interests impacts
201-4 Financial assistance received from government Please refer to the Company's annual report 306-2 Management of significant waste-related impacts Green Operation
GRI 202: Market Presence 2016 306-3 Waste generated Key Performance Indicators
202-1 Ratios of standard entry level wage by gender
Green Operation
compared to local minimum wage Confidentiality Limits 306-4 Waste diverted from disposal Key Performance Indicators
202-2 Proportion of senior management hired from the local community Confidentiality Limits 306-5 Waste directed to disposal Green Operation
GRI 203: Indirect Economic Impacts 2016 Key Performance Indicators
203-1 Infrastructure investments and services supported Contributing to Social Well-being GRI 308: Supplier Environmental Assessment 2016
203-2 Significant indirect economic impacts Contributing to Social Well-being
308-1 New suppliers that were screened using Building a Responsible Supply Chain
GRI 204: Procurement Practices 2016 environmental criteria
204-1 Proportion of spending on local suppliers Confidentiality Limits 308-2 Negative environmental impacts in the supply chain Building a Responsible Supply Chain
GRI 205: Anti-corruption 2016 and actions taken
205-1 Operations assessed for risks related to corruption Upholding Business Ethics GRI 401: Employment 2016
Communication and training about anti-corruption 401-1 New employee hires and employee turnover Key Performance Indicators205-2 policies and procedures Upholding Business Ethics 401-2 Benefits provided to full-time employees that are Protecting Employee Rights and Interests
205-3 Confirmed incidents of corruption and actions taken Upholding Business Ethics not provided to temporary or part-time employees
GRI 206: Anti-competitive Behavior 2016 401-3 Parental leave Protecting Employee Rights and Interests
206-1 Legal actions for anti-competitive behavior anti-
GRI 402: Labor/Management Relations 2016
trust and monopoly practices Upholding Business Ethics
402-1 Minimum notice periods regarding operational Protecting Employee Rights and Interests
GRI 207: Tax 2019 changes
207-1 Approach to tax Please refer to the Company's annual report GRI 403: Occupational Health and Safety 2018
207-2 Tax governance control and risk management Please refer to the Company's annual report 403-1 Occupational health and safety management system Guarding the Safety Line
207-3 Stakeholder engagement and management of
Hazard identification risk assessment and incident
concerns related to tax Please refer to the Company's annual report
403-2 investigation Guarding the Safety Line
207-4 Country-by-country reporting Not Applicable 403-3 Occupational health services Guarding the Safety Line
GRI 301: Materials 2016 403-4 Worker part icipation consultat ion and
Green Packaging communication on occupational health and safety
Guarding the Safety Line
301-1 Materials used by weight or volume Key Performance Indicators 403-5 Worker training on occupational health and safety Guarding the Safety Line
152SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
GRI Standard
Indicator No. GRI Standard Indicator Location/Note
GRI Standard
Indicator No. GRI Standard Indicator Location/Note
403-6 Promotion of worker health Protecting Employee Rights and Interests GRI 417: Marketing and Labeling 2016Guarding the Safety Line
Prevention and mitigation of occupational health 417-1 Requirements for product and service information Providing Premium Services
403-7 and safety impacts directly linked by business Guarding the Safety Line and labeling Safeguarding Delivery Security
relationships
Incidents of non-compliance concerning product and There were no violations involving product
403-8 Workers covered by an occupational health and safety management system Guarding the Safety Line
417-2 service information and labeling and service information and labelling in 2025 in SF.
403-9 Work-related injuries Key Performance Indicators
403-10 Work-related ill health Key Performance Indicators 417-3 Incidents of non-compliance concerning marketing There were no breaches involving marketing
GRI 404: Training and Education 2016 communications communications in 2025 for SF.
404-1 Average hours of training per year per employee Key Performance Indicators GRI 418: Customer Privacy 2016
404-2 Programs for upgrading employee skills and transition assistance programs Construction of Talented Team 418-1 Substantiated complaints concerning breaches of Ensuring Information Security
404-3 Percentage of employees receiving regular
customer privacy and losses of customer data Key Performance Indicators
performance and career development reviews Construction of Talented Team Circular Economy
GRI 405: Diversity and Equal Opportunity 2016
405-1 Diversity of governance bodies and employees Protecting Employee Rights and Interests 3-3 Management of material topics Advancing Circular Economy
405-2 Ratio of basic salary and remuneration of women to men Protecting Employee Rights and Interests
Green Packaging
GRI 406: Non-discrimination 2016 3-3 Management of material topics Advancing Circular Economy
406-1 Incidents of discrimination and corrective actions
Green Packaging
taken Protecting Employee Rights and Interests Environmental Compliance Management
GRI 407: Freedom of Association and Collective Bargaining 2016
Operations and suppliers in which the right to 3-3 Management of material topics Practicing Green Operations
407-1 freedom of association and collective bargaining Protecting Employee Rights and Interests Rural Revitalization
may be at risk
GRI 408: Child Labor 2016 3-3 Management of material topics Contributing to Social Well-being
408-1 Operations and suppliers at significant risk for incidents of child labor Protecting Employee Rights and Interests Social Contribution
GRI 409: Forced or Compulsory Labor 2016 3-3 Management of material topics Contributing to Social Well-being
409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor Protecting Employee Rights and Interests Innovation-Driven
GRI 413: Local Communities 2016 3-3 Management of material topics Pioneering Intelligent Logistics
413-1 Operations with local community engagement impact assessments and development programs Not Applicable Ethics in Science and Technology
413-2 Operations with significant actual and potential negative impacts on local communities Not Applicable
3-3 Management of material topics Technology Ethics
GRI 414: Supplier Social Assessment 2016 Supply Chain Security and Resilience
414-1 New suppliers that were screened using social criteria Building a Responsible Supply Chain
3-3 Management of material topics Building a Responsible Supply Chain
414-2 Negative social impacts in the supply chain and
Equal Treatment of Small and Medium-sized Enterprises (SMEs)
actions taken Building a Responsible Supply Chain
GRI 415: Public Policy 2016 3-3 Management of material topics Building a Responsible Supply Chain
415-1 Political contributions Not Applicable Safe Delivery and Transportation
GRI 416: Customer Health and Safety 2016 3-3 Management of material topics Guarding the Safety Line
416-1 Assessment of the health and safety impacts of Guarding the Safety Line Building a Green and Intelligent Industrial Chainproduct and service categories
416-2 Incidents of non-compliance concerning the health
Developing Green Logistics
and safety impacts of products and services Guarding the Safety Line
3-3 Management of material topics Pioneering Intelligent Logistics
153SF Holding 2025 Sustainability Report About SF Sustainability Management Governance Environment Social Services Appendices
Air Freight & Logistics SASB Content Index
Sustainability Disclosure Topics & Accounting Metrics
Topic Accounting Metric Category Code Location
Gross global Scope 1 emissions Quantitative TR-AF-110a.1 Key Performance Indicators
Greenhouse Gas Discussion of long- and short-term strategy or plan to manage Scope 1 emissions emissions reduction targets and Discussion and
Emissions an analysis of performance against those targets Analysis
TR-AF-110a.2 Addressing Climate Change
Fuel consumed by (1) road transport percentage (a) natural gas and (b) renewable and (2) air transport percentage
(a) alternative and (b) sustainable Quantitative TR-AF-110a.3
Developing Green Logistics
Key Performance Indicators
Air Quality Air emissions of the following pollutants: (1) NOx (excluding N2O) (2) SOx and (3) particulate matter (PM10) Quantitative TR-AF-120a.1 Key Performance Indicators
Percentage of drivers classified as independent contractors Quantitative TR-AF-310a.1 Not Applicable
Labour Practices
Total amount of monetary losses as a result of legal proceedings associated with labour law violations Quantitative TR-AF-310a.2 Not Applicable
Employee Health &
Safety (1) Total recordable incident rate (TRIR) and (2) fatality rate for (a) direct employees and (b) contract employees Quantitative TR-AF-320a.1 Key Performance Indicators
Total greenhouse gas (GHG) footprint across transport modes Quantitative TR-AF-430a.2 Not Applicable
Supply Chain
Management Discussion of policies and strategies to identify assess and manage business disruption risks associated with contract Discussion and TR-AF-430a.3 Occupational Health and carrier safety Analysis Safety Management
Description of implementation and outcomes of a Safety Management System Discussion and Analysis TR-AF-540a.1 Guarding the Safety LineAccident &
Safety
Management Number of aviation accidents Quantitative TR-AF-540a.2 Key Performance Indicators
Number of road accidents and incidents Quantitative TR-AF-540a.3 Key Performance Indicators
Table. Activity Metrics
Activity Metric Category Code Location
Revenue ton kilometres (RTK) for: (1) road transport and (2) air transport Quantitative TR-AF-000.A Not Applicable
Load factor for: (1) road transport and (2) air transport Quantitative TR-AF-000.B Not Applicable
Number of employees number of truck drivers Quantitative TR-AF-001.C Key Performance Indicators
154WE DELIVER AS PROMISED
S.F. Holding Co. Ltd.Post code: 518057 Customer service hotline: 95338
Website: http://www.sf-express.com
Address:TK Chuangzhi Tiandi Building Keji South 1st Road
Nanshan DistrictShenzhen Guangdong Province the PRC
沪公网安备31011802005267号
