2025 Annual
Great River Smart Logistics Co. Ltd.Sustainable Development Standardized Governance Environmental Management
(ESG) Management and Robust Operation and Ecological Protection
1.1 Sustainable Development Goals (SDGs) and Responses 13 2.1 Corporate Governance 21 3.1 Environmental Compliance Management 37
1.2 Due Diligence 13 2.2 Business Ethics 29 3.2 Pollutant Dischage 44
1.3 ESG Management Framework 14 2.3 Compliant Operations 32 3.3 Waste Management 45
1.4 Stakeholder Communication 15 2.4 Risk Management 33 3.4 Water Resource Management 46
1.5 ESG Topic Materiality Assessment 16 2.5 Intellectual Property 34 3.5 Circular Economy 47
3.6 Energy Management 49
3.7 Ecosystem and Biodiversity Protection 51
3.8 Climate Change Response 52
Product Responsibility Employee Recruitment Partnership Cooperation
and Customer Service and Talent Development and Industry Advancement
4.1 Product Quality and Safety 63 5.1 Employee Recruitment 79 6.1 Responsible Supply Chain 97
4.2 Customer Service 67 5.2 Employee Benefits and Care 79 6.2 Industry collaboration 99
4.3 Data Security and Privacy Protection 71 5.3 Employee Training and Development 82 6.3 Social Contribution and Rural Revitalization 103
4.4 R&D and Innovation 73 5.4 Employee engagement and communication 85
5.5 Occupational Health and Safety Production 86
About This Report
Chairman's Message 01
An Overview of Great River
Smart Logistics 03Annual Sustainability Report
Great River Smart Logistics Co. Ltd.About This Report
Report Information Statement Reference Guidelines
This is the seventh Sustainability report published by Great River Smart Logistics Co. Ltd. (hereinafter referred to as“ Great River Smart ”“ the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation)Company” or “we”). This report articulates the Company's sustainability philosophy and policies as well as our efforts in environmental Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Stock Exchange—Preparation of Sustainability Report
protection social responsibility and corporate governance throughout 2025 addressing the expectations and concerns of our stakeholders.SDG Compass: The Guide for Business Action on the SDGs
GRI Standards for Sustainability Reporting
The Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
Time Frame
This report covers the period from January 1 2025 to December 31 2025. For continuity of information certain contents have been
retrospectively reviewed or extended. All information included is derived from the Company's internal data and publicly available materials.Access to the Report
This report is published in electronic form and is available on the Company's official website (www.grsl.cn) and the CNINFO website (www.cninfo.Scope of the Report com.cn).The organizational scope of this report encompasses all business operations of Great River Smart Logistics Co. Ltd. and its subsidiaries
consistent with the scope disclosed in the Company's annual report.Disclaimer
Data Statement
This report aims to disclose the Company’s performance in Environmental Social and Governance (ESG) aspects for the year 2025. All
information and data contained herein are for reference only. Readers are advised to conduct their own research and evaluation of the
All data and case studies presented in this report are sourced from official company documents and statistical reports and have undergone information provided and to consult appropriate professionals before making any decisions. The Company does not accept any responsibility
internal verification. or liability for any direct or indirect loss arising from the use of the information contained in this report for purposes beyond its intended scope.The operational data disclosed herein is derived from the “Great River Smart Logistics Co. Ltd. 2025 Annual Report” (hereinafter referred to For any questions or suggestions regarding this report please contact us at:
as the “Annual Report”). In case of any discrepancies the Annual Report shall prevail. Unless otherwise specified all monetary amounts in
this report are denominated in CNY. Great River Smart Logistics Co. Ltd. Tel: 0769-88002930 Email: grsl@grgroup.ccAnnual Sustainability Report
Great River Smart Logistics Co. Ltd.Chairman's Message
With a far-reaching vision and an enduring drive for progress like a intelligence with industrial scenarios to foster new drivers for growth. As of the end of 2025 Great River Smart operated 14 terminals and 1042 storage
great river flowing ceaselessly 2025 marked the successful conclusion tanks with a total capacity exceeding 5 million cubic meters and over 150000 square meters of chemical warehouses in operation. Our core asset base
of China's 14th Five-Year Plan and was also a year in which Great demonstrated steady expansion and our comprehensive service capabilities continued to improve.River Smart Logistics advanced with clear strategic direction amid Driving Resolute Transformation Shaping the Future Blueprint
transformation and reinforced its foundations under pressure. During
the year in the face of a complex situation characterized by continuous Swift in tailwinds steady in headwinds. 2025 was a pivotal year for deepening comprehensive reforms at Great River Smart Logistics. We applied
adjustments in industry demand and profound cyclical restructuring systemic thinking to build a scientific operations management framework achieving breakthroughs in strategy organization and mechanisms to inject
we maintained strategic focus upheld our core value of being strong organic momentum enous momentum into our long-term sustainable development.customer-centric and advanced forward our strategic transformation Over the past year we established a strategic pivot from being “Resource-Driven” to “Capability-Driven” accelerating our transition into an
from a traditional storage service provider to an integrated supply integrated supply chain service provider for the energy and chemical sectors. By integrating resources and exporting our capabilities we explored asset-
chain service provider for the energy and chemical sectors. All GR team light service models and provided upstream and downstream customers with bespoke integrated solutions spanning storage transportation and
members rose to challenges with pragmatism and embraced change to agency services. This facilitated the seamless convergence of trade logistics capital and information flows.chart the course for the future. Amid an uncertain market environment
We continued to refine our modern enterprise system and elevate corporate governance standards. In December 2025 the successful inaugural
we moved with certainty and resolve delivering an annual performance transition of the Rotating President marked the normalization of this mechanism. Concurrently we comprehensively revised our Articles of Association
characterized by stability as the priority progress in every step and and governance policies in accordance with the updated Company Law. This upgrade transitioned our decision-making from individual wisdom to
quality as the long-term focus. collective intelligence and from experience-driven to mechanism-driven ensuring the organization’s steady and sustained progress through scientific
governance.Prioritizing Stability While Pursuing Progress Fortifying the
Upholding Responsibility and Benevolence Deepening our ESG Commitment
Foundations of Growth
Great River Smart Logistics has long regarded “creating holistic value for society” as its key mission. By deeply embedding ESG principles into our
In 2025 the domestic chemical storage industry faced sustained corporate culture and throughout the entire operational lifecycle we have fortified the roots and fueled the momentum for the company's sustainable
demand-side pressure while market competition grew increasingly development.rational. Despite the temporary decline in revenue and gross margins Over the past year with HSE (Health Safety and Environment) as our cornerstone we continued to increase investment in safety and environmental
Great River Smart Logistics remained committed to its long-term stable technologies driving the deep integration of digital and intelligent tools into terminal management to firmly uphold our safety and environmental
development strategy. We anchored our focus on integrated supply bottom line. By advancing the upgrade of storage and transportation facilities for green products we supported the green low-carbon transition
chain layouts the construction of a nationwide logistics network and of the regional energy and chemical sectors with the results of our energy conservation and emission reduction efforts steadily becoming evident.digital transformation to continuously enhance operational efficiency. Furthermore we extended our integrity and compliance standards to supply chain management working with partners to build a transparent fair and
equitable business ecosystem.Over the past year we further optimized our large-scale nationwide storage In addition leveraging multiple platforms such as the Haoshang Public Welfare Fund 620 GR Charity Day (20 June) Great River Spark Volunteer Team
and logistics network fortifying the core hubs essential for the delivery of and the Employee Mutual Aid Fund we actively fulfilled our social responsibilities in areas including rural vitalization education support elderly care
integrated supply chain services. Newly constructed and expanded chemical support for military personnel and their families and community development.storage projects in Chengdu Changshu and Changzhou commenced
With the wind in our sails for the journey ahead we set forth once more to embrace our formidable responsibilities.operations successively while projects in Huizhou and Zhongshan
progressed steadily providing robust storage and logistics infrastructure for In the coming year Great River Smart Logistics will remain true to its original aspiration and maintain its strategic focus. We will deepen our presence in
the development of regional energy and chemical sectors. Furthermore integrated supply chain services for the energy and chemical sectors anchoring our growth through prudent operations and activating internal vitalityin active response to the national “East-to-West Computing Resource through reform and innovation. Guided by ESG principles we are committed to building a supply chain ecosystem that is safe green efficient andTransfer” initiative we leveraged years of accumulated industry data toto open. Our goal is to become an indispensable platform-based organization in the global energy and chemical supply chain moving steadily toward a
Chairman world-leading position. 林海川 further strengthen our capabilities in computing power infrastructure and Great River Smart big data services.. Through the founding of Beijing Great River Intelligent We remain firmly convinced that through the joint efforts of all GR team members the Company will forge ahead steadily on the path of sustainable development. With
Computing Technology Co. Ltd. and Dongguan Great River Rongxin Big robust operational results and enduring social value we will continue to reward our shareholders empower the industry and honor the expectations of our era.Data Technology Co. Ltd. we are exploring the deep integration of data
01 02Annual Sustainability Report
Great River Smart Logistics Co. Ltd.An Overview of Great River Smart Logistics
Company Profile The Company is headquartered listed on the Shenzhen Stock Exchange on March 28 2018
in Dongguan Guangdong Province (stock name: Great River Smart Logistics; stock code: 002930).Great River Smart is a national model in chemical logistics safety management and a leading private chemical storage enterprise. The Company
is committed to becoming a globally leading integrated supply chain service provider for the energy and chemical industries. We primarily offer Total tank capacity: Total warehouse capacity: Total land area: over
comprehensive logistics services including storage and transportation to Chinese and foreign petrochemical producers traders and end users. We are 5.1844 million m3 157200 m2 6000 acres
continuously upgrading our business toward digitally and intelligently driven integrated and customized supply chain services. Leveraging cutting-edge
technologies such as big data and artificial intelligence to optimize operational planning and dispatch we integrate warehousing network resources
nationwide and connect every stage of the supply chain to provide customers with a full package of end-to-end solutions across the entire network and Number of storage facilities: Number of storage facilities: Number of storage tanks:
value chain. 19 14 1042
Development History Business Layout
and Service Portfolio
03 04Annual Sustainability Report
Great River Smart Logistics Co. Ltd.corporate culture
HSE Culture
People-oriented
ensuring health safety
and environmental protection
Vision Core Values Mission
Family-Care Culture
To become a globally leading Committed to long-term principles Provide quality services to customers “100% Gratitude” program for filial piety to parents
energy and chemical storage HSE as foundation Build development platforms “Family Journey” program for family care
and logistics service provider Customer-centric for employees “Employee Mutual Aid Fund” for colleagues in need
Contributor-oriented Create comprehensive value
Continuous self-transformation for society
Generate substantial returns
for shareholders Satisfaction Culture
Satisfied employees provide satisfactory service
to customers
Employee satisfaction
Department satisfaction
Customer satisfaction
Employee Focus Leading Culture
Leading enterprises
Leading team and management
Leading talents and concepts
Leading benefits
Communication Culture
Supervisors to subordinates: More praise
more encouragement
Subordinates to supervisors: More suggestions
more discussions to resolve problems
Collaboration Culture
Internal complementary assistance
and mutual progress
External coordinated development
and one-stop service
05 06Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Business Footprint Specialized Services
Tank Washing Universal Commodity Hazardous Chemical End-to-End Integrated
and Wastewater Deposit and Vehicle Highway Supply Chain Services
Treatment Services Withdrawal Services Port Services
Designated Delivery Warehouse Qualifications
Certain storage facilities of the Company boast designated delivery warehouse qualifications from the Dalian Commodity Exchange (DCE) and the
Zhengzhou Commodity Exchange (ZCE). These facilities can thus provide warehousing and other services for the physical delivery of specified
commodity futures contracts as detailed below:
Exchange Commodity Storage Facilities
Styrene Dongguan Evergrowing Terminal Nantong Power Shell Petrochemical Changzhou Great River
Service Portfolio
Dongguan Evergrowing Terminal Taicang Power Shell Petrochemical
Ethylene Glycol Nantong Power Shell Petrochemical Changzhou Great River Changshu
DCE Great River
Chemical Pure Benzene Changzhou Great River Fujian Gangfeng Energy
Bulk Chemical Chemical Tank Trucks Railway Tank Box Trucks Warehouse Terminal Tank Vessel Unloading
Vessels Plants Cars Storage Services Storage Services Services
Methanol Ta i ca n g Po w e r S h e l l Pet ro c h e m i ca l N a n to n g Po w e r S h e l l Petrochemical Changzhou Great River
Pipeline Truck Unloading Railway Container Truck Loading Railway Loading Vessel Loading
Transportation Services Unloading Services Handling Services Services Services Services
Service
ZCE
Propylene Changzhou Great River
07 08Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Honors and Ratings Title Awarded by Awarded to
Citywide Advanced Unit for Contribution to The CPC Rugao Municipal Committee and the Rugao Nantong Power Shell
Service Industry Development 2024 Municipal People's Government Petrochemical
Honors from the Government
Outstanding Contribution Enterprise for Foreign The CPC Lanshan District Committee and the Lanshan
Trade and Investment 2024 District People's Government Rizhao Rizhao Great River
Title Awarded by Awarded to Advanced Unit in Anti-Terrorism 2024 Anti-Terrorism Leading Group Office Lanshan District Rizhao Rizhao Great River
Excellence in Border Inspection Integrity Changshu Entry-Exit Border Inspection Station Changshu Great Smart Advanced Enterprise for Economic CPC Lanshantou Subdistrict Working Committee Management 2024 Development 2024 and Lanshantou Subdistrict Office Rizhao Great River
Three-Star Enterprise in Modern Services 2024 The CPC Changzhou Municipal Committee and the Changzhou Municipal People’s Government Changzhou Great River
Honors from Industry Associations
Contribution Award for Technological Management Committee of Changzhou Binjiang
Innovation 2024 Economic Development Zone Jiangsu Changzhou Great River
Special Tax Contribution Award 2024 Management Committee of Changzhou Binjiang Changzhou Great River Title Awarded by Awarded to
Star Enterprise 2024 The CPC Changzhou Municipal Committee and the Changzhou Municipal People’s Government Changzhou Great River
Outstanding Petrochemical Storage and Logistics Organizing Committee of the China Petroleum Great River Smart
Enterprise of China 2025 and Chemical Industry Annual Conference; JLC Logistics
The CPC Shatian Town Committee and the Dongguan Evergrowing Outstanding Practice Case for Board of Top 10 Enterprises by Main Business Revenue China Association for Public Companies
Great River Smart
Shatian Town People's Government Dongguan Terminal Directors 2025 Logistics
Major Taxpayer 2024 ( CNY 5M–10M) Huian County People's Government Fujian Gangfeng Energy ESG Best Practice Award 2025 Dongguan Municipal Association for Public Companies Great River SmartLogistics
Large Taxpayer 2024 The CPC Jingfeng Town Committee and the
Changzhou Great River
Jingfeng Town People's Government Fujian Gangfeng Energy Outstanding QHSE Management Case Dongguan Evergrowing in Chemical Logistics 2025 China Federation of Logistics and Purchasing Terminal Zhongshan GR
Terminal
Demonstration Enterprise for Standardized Full- Office of Quanzhou Municipal Work Safety Innovative Enterprise in Chemical Logistics
Responsibility Implementation Committee Fujian Gangfeng Energy Supply Chain Services 2025 China Federation of Logistics and Purchasing Changzhou Great River
Special Progress Award 2025 Changlu Subdistrict Office Jiangbei New District Nanjing Great River
Honors from Partners
Citywide Advanced Unit for Investment in The CPC Rugao Municipal Committee and the
Service Industry 2024 Rugao Municipal People's Government Nantong Great Smart
Title Awarded by Awarded to
Citywide Advanced Unit for Contribution to The CPC Rugao Municipal Committee and the Nantong Power Shell
Service Industry Development 2024 Rugao Municipal People's Government Petrochemical
Outstanding Logistics Partner 2025 Sinopec Chemical Sales Co. Ltd. South China Branch Dongguan Evergrowing Terminal
Citywide Advanced Unit for Investment in The CPC Changjiang Town Committee and the Nantong Power Shell
Service Industry 2024 Changjiang Town People's Government Rugao Petrochemical Outstanding Logistics Service Provider 2024 Sinopec Chemical Logistics Co. Ltd. Nantong Power Shell Petrochemical
Advanced Unit for High-Quality The CPC Rugao Municipal Committee and the Nantong Power Shell
Development 2024 Rugao Municipal People's Government Petrochemical Outstanding Logistics Service Provider 2024 Guangxi Huayi New Materials Co. Ltd. Zhongshan GR Terminal
09 10Annual Sustainability Report
Great River Smart Logistics Co. Ltd.
01
Sustainable Development
(ESG) Management
Sustainable Development (ESG) Management 13
Due Diligence 13
ESG Management Framework 14
Stakeholder Communication 15
ESG Topic Materiality Assessment 16
11 12Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Sustainable Development (ESG) Management ESG Management Framework
Sustainable Development Goals (SDGs) and Responses The Company is guided by its core mission: to deliver exceptional service to customers foster employee growth and development generate holistic value for society and maximize shareholder returns. The Company has strategically integrated ESG principles into its corporate strategy
continuously refining its ESG governance framework with clearly defined objectives. While driving business performance the Company remains
The Company has formulated the medium-and long-term strategic goals covering environmental social and corporate governance dimensions and
regularly tracked the achievement of ESG management goals under each dimension so as to ensure the effective implementation of sustainable committed to enhancing its sustainability practices addressing stakeholder expectations and creating enduring societal value all of which support
development work and help it achieve high-quality growth and social value symbiosis. its trajectory of sustainable high-quality growth.The Company has implemented a robust ESG management system with active oversight to ensure long-term sustainability. The Board's Strategy
Material Topic Response SDGs Management Objectives Progress and Sustainable Development Committee provides governance and accountability for sustainability matters supported by a dedicated Sustainable
Development Leadership Working Group that drives the implementation of ESG initiatives across the organization.
1 . Ex p l o r e c a r b o n r e d u c t i o n
mechanisms respond to the national
"carbon peaking & carbon neutrality" 1. In 2025 the total emissions within Scope 1 and
strateg y and ensure that the Scope 2 of the Company were 23086.83tCO2e a
Climate Change Response Company achieves carbon peaking year-on-year decrease of 6.46%;
before 2030 and carbon neutrality 2. In 2025 no environmental pollution incidents Audit Committee Audit Department
before 2060 ; occurred; the Company completed ISO14001
2. Continuously enhance and optimize environmental management system certification.
environmental management systems.Strategy and Sustainable Sustainable Development Leadership
1. Promoted continuous improvement of supplier Development Committee Working Group
1. Ensure that 100% of suppliers sign partners' ESG performance and conducted
Supply Chain Security business integrity clauses; annual comprehensive evaluations with 100% of 2. Ensure that 100% of new suppliers suppliers signing business integrity clauses;
are evaluated using ESG dimensions. 2. In 2025 100% of new suppliers were evaluated Board of Directors Remuneration and Assessment Committee
using ESG dimensions.
1. Continuously increase quality
management system certification 1. The Company and its major subsidiaries
coverage; obtained ISO9001 quality management system
Nomination Committee
Product and Service Safety certification;
and Quality 2. Ensure a 100% timely handling rate for major customer complaints 2. 100% of customer complaints were properly HSE Management Office
regarding service quality during the handled with no major customer complaints
reporting period. throughout the year. HSE and Innovation Committee
Science and Technology
1. In 2025 the total duration of offline training Innovation Office
1. Ensure that the coverage and duration reached 51495.82 hours with an average training
of employee training remain at the duration of 26.16 hours per employee and a
forefront in the industry; vocational training investment of CNY2.116 Employee Matters million;2. Ensure that 100% of in-service Decision-Making Level ——Board Strategy and Sustainable Development Committee
employees are covered by occupational 2. In 2025 100% of the in-service employees
disease physical examination. were covered by occupational disease physical examination with the incidence rate of As the highest governing body responsible for the Company's ESG matters the committee
occupational disease being 0%. establishes strategic directions for sustainable development oversees and guides the
implementation of ESG initiatives and ensures the effective execution of the Company's ESG
Due Diligence management activities.Management Level ——Sustainable Development Leadership Working Group
Strictly benchmarking against international standards and domestic practice requirements and based on the disclosure standards for due diligence
on sustainable development reports in relevant policies and guidelines Great River Smart conducts comprehensive due diligence on its business. Comprised of senior executives this group formulates ESG management objectives
The Company has established a Strategy and Sustainable Development Committee as its ESG governance body to comprehensively coordinate aligned with the Company's current development phase and monitors progress
due diligence related activities of which the core responsibilities include: reviewing the Company's ESG strategic goals and due diligence plans toward achieving these objectives.supervising the standardization and effectiveness of due diligence process ensuring the independence systematicity and authority of due diligence
activities and providing top-level institutional guarantees for the orderly implementation of the entire process. Execution Level ——Centers/Departments and Subsidiaries
In the identification and management of sustainable development risks the Company adopts both qualitative and quantitative methods to identify
various risks. At the beginning of each year the Risk Management Committee coordinates various centers and departments to comprehensively These operational units implement specific ESG-related activities
review emerging risks related to strategy market operations finance compliance climate change and data security uses risk databases and risk according to established management indicators and mechanisms
matrix tools to assess the occurrence likelihood and impact of risks and classifies various risks into major important and minor levels; in response while regularly reporting progress to the Sustainable Development
to major risks the Company develops a special response plan clarifying the responsible parties response strategies and rectification deadlines; Leadership Working Group.with respect to routine operational risks the Company implements rigid control through internal control manuals authorization guidelines and
standardized operating procedures; in key areas such as exchange rate fluctuations supply chain disruptions and environmental compliance the
Company sets warning indicators and conducts dynamic monitoring so as to achieve rapid response and effective control for risks.
13 14Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Stakeholder Communication ESG Topic Materiality Assessment
Deeply aware that the opinions and expectations of various stakeholders have a significant impact on the operation and development of the Company Accurately identifying and assessing material topics is an important part of ESG management which helps the Company focus on key areas and
Great River Smart always pays attention to the opinions and demands of internal and external stakeholders resolutely builds a diversified communication clarify ESG strategic planning and work priorities. In 2025 aiming to improve the construction of its own ESG information disclosure system taking
mechanism establishes close contacts with stakeholders actively communicates with stakeholders through more channels and more ways continuously into account the new expectations of stakeholders for enterprise management and development referring to the Self-Regulatory Guidelines No.optimizes its sustainable development strategies and accepts supervision from various stakeholders. By reference to the Code of Corporate Governance for 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For Trial Implementation) the Self-Regulatory Guidance No. 3 for
Listed Companies of the China Securities Regulatory Commission the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange— Companies Listed on Shenzhen Stock Exchange—Preparation of Sustainability Report the UN Sustainable Development Goals (SDGs) GRI Universal
Sustainability Report (For Trial Implementation) the Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Stock Exchange—Preparation Standards 2021 ISO 26000 and other sustainability-related standards Great River Smart Logistics conducted the ESG topic materiality assessment
of Sustainability Report and the AA1000 SES (Accountability - Stakeholder Engagement Standard) and on the basis of definitions and descriptions based on the characteristics of its industry and business.of stakeholders therein Great River Smart has identified shareholders/investors customers suppliers employees government/regulatory agencies
communities and the environment as its primary stakeholder categories. Sorting out the relationship between activities and business background of the Company:
Stakeholder Communication Channels
Categories and Frequency Focus Areas Company Responses
01 The Company gained an understanding of its activities and business relationships including its products and Investor hotline (weekly) Corporate governance Strengthened Board oversightEmail newsletter (monthly) Advanced carbon neutrality goals services strategic planning upstream/downstream value chains and other related information.
Shareholders/Investors Shareholders meetings (annually)
Climate change response
Data security and customer privacy protection Enhanced data protection encryptionEarnings release meeting (quarterly) Optimized energy structure
Investor relations website update (monthly) Energy utilization Improved supply chain resilience The Company gained an understanding of the external objective environment and analyzed relevant laws and
Interim announcements (irregularly) Supply chain security Increased financial transparency
regulatory policies as well as media reports industrial analysis specific industrial standards research reports 02
Conference call (monthly) Climate change response Reduced carbon emissions and other specific public documents.Email correspondence (weekly) Corporate governance Improved governance structure
Customer visits (quarterly) Product and service safety and quality Enhanced product safetyCustomers Online chat (irregularly) Employee matters Optimized employee benefits
Annual meetings (annually) Data security and customer privacy protection Strengthened data protection
Customer feedback surveys (semi-annually) Stakeholder communication Increased communication 03 The Company identified the main affected stakeholders and analyzed the existing stakeholder engagement methods.transparency
Email correspondence (weekly) Climate change response Established clear emission reduction targets
Conference call (monthly) Waste management Implemented classified recycling
Suppliers Site visits (quarterly) Green operations Operated energy-efficient systems Establishing A List of TopicsSupplier conferences (annually) Energy utilization Prioritized renewable energy
Instant messaging (irregularly) Environmental compliance management Conducted rigorous environmental audits
Business review meetings (semi-annually) Circular economy Promoted resource recycling On the basis of the 21 topics set in the SZSE's Guidelines in accordance with the regulatory policies regional regulations and industrial standards
and by reference to companies in the same industry or value chain that have performed well in sustainable development in the long run the
Implemented employee development Company added specific topics with high industrial attention and ultimately formed a list of 21 identified topics including:Internal emails (weekly) Employee rights and benefits
Enterprise WeChat (weekly) Corporate governance programs
Employees Townhall meetings (quarterly) Data security and customer privacy protection
Maintained transparent governance structure
Training sessions (semi-annually) Environmental compliance management Reinforced privacy protection encryption
Performance evaluations (annually) Supply chain security Upheld environmental operational standards environmental topics social topics Sustainable development
Emergency meetings (irregularly) Occupational health and safety Enhanced supply chain transparencyProvided health and safety training governance topics.Articles of Association Policy feedback 9
Climate change response Reduced carbon emissions 8 4meetings (irregularly)
Regulatory compliance reviews (annually) Corporate governance Enhancing Board functionalityGovernment/Regulatory
Emergency notifications (irregularly) Product and service safety and quality Enhanced product safetyAuthorities Regular regulatory communications Data security and customer privacy protection Enhanced data protection encryption
(irregularly) Employee matters Optimized employee benefits Assessing and Analyzing the Materiality of Topics
Industry seminars (annually) Environmental compliance management Reinforcing environmental monitoring
The Company invited experts in the field of sustainable development and other stakeholders to fill out a questionnaire on materiality of topics by
Community meetings (irregularly) Climate change response reference to the SZSE's material topic identification process and assessed the materiality of topics from two aspects (namely financial materiality Reduced carbon emissions
Environmental reports (annually) Waste management Promoting recycling and impact materiality) based on the topic materiality assessment by internal employees. For financial materiality the Company considered Community and Online forums (irregularly) Green operations Implementing green office practices whether a topic is expected to have a significant impact on the Company's business mode operations development strategy financial status Environment Open days (irregularly) Environmental compliance management Optimizing water efficiency operating results cash flow financing methods and costs in the short medium and long term. For impact materiality the Company considered Newsletter (monthly) Water resource utilization
Emergency notifications (irregularly) Ecosystem and biodiversity protection Preserving biodiversity whether the performance in the corresponding dimensions will have actual or potential significant impacts on the economy society and
environment and also quantified the impact materiality of each topic based on the results of questionnaire-based survey among stakeholders.
15 16Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Confirming Material Topics Quadrant Overall Ranking Material Topic Category
Great River Smart constructed a materiality analysis matrix based on the topic assessment results obtained the materiality ranking results of topics Both Financially and Impact Material 1 Climate Change Response Environmental
and highlighted the high-materiality topics in its reports. The Company set thresholds for topics sorted them according to priority and ensured
that resources are focused on the most material ESG topics so as to effectively promote the Company's sustainable development. Both Financially and Impact Material 2 Supply Chain Security Social
Materiality Assessment Conclusions Both Financially and Impact Material 3 Product and Service Safety and Quality Social
Financially Material Only 4 Employee Matter Social
Great River Smart obtained the topic materiality assessment results based on the above-mentioned assessment process constructed a materiality
analysis matrix according to priority ranking and finally selected three topics with dual materiality namely climate change response supply chain Impact Material Only 5 Waste Management Environmental
security and product and service safety and quality. With respect to material topics the Company has formulated a detailed strategic plan and
provided focused responses and disclosures in its reports and ensures that resources are concentrated on the most material ESG topics so as to Impact Material Only 6 Pollutant Discharge Environmental
effectively promote its sustainable development.Impact Material Only 7 Innovation-Driven Development Social
Assessment Results for Material Topics of Great River Smart
Impact Material Only 8 Due Diligence Sustainable Development Governance
Impact Material Only 9 Data Security and Customer Privacy Protection Social
Impact Material Only 10 Stakeholder Communication Sustainable Development Governance
Impact Material Only 11 Energy Utilization Environmental
Impact Material Only 12 Environmental Compliance Management Environmental
Impact Material Only 13 Water Resource Utilization Environmental
General Topic 14 Social Contribution Social
General Topic 15 Anti-Unfair Competition Sustainable Development Governance
General Topic 16 Circular Economy Environmental
General Topic 17 Anti-Commercial Bribery and Anti- Sustainable Development Corruption Governance
General Topic 18 Equal Treatment of SMEs Social
General Topic 19 Technology Ethics Social
General Topic 20 Rural Revitalization Social
General Topic 21 Ecosystem and Biodiversity Conservation Environmental
17 18Annual Sustainability Report
Great River Smart Logistics Co. Ltd.
02
Standardized Governance
and Robust Operation
Corporate Governance 21
Business Ethics 29
compliant operation 32
Risk Management 33
Intellectual Property 34
19 20Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Standardized Governance and Robust Operation Institutional Development
The Company attaches great importance to its institutional development consistently regarding the refinement of its rules and regulations as a
vital safeguard for enhancing management warding off operating risks and achieving sustainable development. During the reporting period in
accordance with such laws rules and regulations as well as normative documents as the Company Law the Guidelines for the Articles of Association
Corporate Governance of Listed Companies and the Arrangements for the Transition Period Concerning the Implementation of Supporting Rules for the New Company
Law issued by the CSRC the Company has revised its Articles of Association and its appendices: the Rules of Procedure for the General Meeting of
Shareholders (renamed the Rules of Procedure for the Shareholders’ Meeting) and the Rules of Procedure for the Board of Directors based on its
Governance Framework actual conditions. Furthermore to optimize the corporate governance structure and promote standardized operations the Company—acting under
the Company Law the Guidelines for the Articles of Association the Rules Governing the Listing of Shares on the Shenzhen Stock Exchange and the
Great River Smart regards the improvement of corporate governance as a vital cornerstone for achieving sustainable development. We are Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange — Standardized Operation of Main Board Listed Companies
committed to building a scientific efficient and transparent governance system strictly adhering to laws and regulations such as the Company among other laws and regulations normative documents as well as self-regulatory rules—has revised renamed or developed various governance
Law and the Securities Law. By continuously refining our fundamental institutional framework including the Articles of Association the Rules of policies tailored to its actual needs. These efforts have resulted in a scientific systematic and highly efficient institutional framework providing a
Procedure for the Shareholders’ Meeting and the Rules of Procedure for the Board of Directors we have established a governance framework with solid foundation for the Company's high-quality development.clearly defined responsibilities effective checks and balances and coordinated operations.Operation of the Shareholders' Meeting and the Board of Directors
Great River Smart Logistics Co. Ltd.Shareholders and the Shareholders' Meeting
Shareholders'Meeting
HSE and Innovation Committee
The Shareholders’ Meeting composed of all shareholders is the highest authority of the Company. In strict accordance with relevant laws and
Strategy and Sustainable Development Committee
regulations such as the Company Law and the Securities Law normative documents as well as the Articles of Association and the Rules of Procedure
Board of Directors Remuneration and Evaluation Committee for the Shareholders’ Meeting the Company standardizes the procedures for convening holding and voting at the Shareholders’ Meeting. We
treat all investors equally ensuring that shareholders particularly minority shareholders can fully exercise their rights thereby effectively protecting
Nomination Committee their legitimate interests.Audit Committee During the reporting period all Shareholders’ Meetings were convened in compliance with the Articles of Association and the Rules of Procedure
for the Shareholders’ Meeting with legal counsel present to provide witnessing.Management Change Management Committee
Terminal & Tank Storage Chemical Warehousing &
Segment Integrated Logistics Segment
During the reporting period
13
the Company held 13
Shareholders' Meetings
Process Human Engineering Terminal & Terminal & Chemical Chemical Finance & Digital Tank Storage
Dept. Intelligence Resources & Equipment Tank Storage Operation HSE Dept.Warehousing Distribution Warehousing Subordinate 40
Dept. Dept. Dept. Operation Dept.Operation Dept. Commercial
Dept. Dept. Dept. storage areas which reviewed 40
proposals/sub-proposals.Note: This represents the latest organizational structure of Great River Smart Logistics as of January 21 2026.
2122
Science and Technology Innovation Office
HSE Management Office
Audit Dept.Project management office
Commercial Center
Distribution Operation Center
Risk Control Dept.Warehousing Operation Center
Operation Center
Strategic Customer Dept.Commercial Center
President's Office
Engineering & Equipment Center
Human Resources Center
Integrated Supply Chain Dept.Process & Digital Intelligence Center
Finance Center
Strategy & Marketing Dept.Board OfficeAnnual Sustainability Report
Great River Smart Logistics Co. Ltd.Directors and the Board of Directors Management
The Board of Directors currently consists of nine members including four independent directors who are respectively experts in accounting industry
investment and corporate strategy. Independent directors represent more than one-third of the Board ensuring that the Board’s composition
meets all legal requirements and the Articles of Association. The Board has established five specialized committees to further optimize the corporate
governance structure. They are the Audit Committee the Remuneration and Evaluation Committee the Nomination Committee the Strategy and Composition of Management
Sustainable Development Committee and the HSE and Innovation Committee.During the reporting period
As of the date of this report the Company has four Senior Management members.
1877
the Company held 18 meetings which reviewed 77 proposals.of the Board of Directors Rotating President System
As the scale expands year by year the Company actively improves its corporate governance structure to enhance democratic scientific and efficient
decision-making. To this end the Company strictly implements the Rotating President Mechanism.Specialized Committees In 2025 to further deepen the practice and effectiveness of this mechanism the Company systematically optimized the Detailed Working Rules for
the President. While maintaining the principle that the Rotating President “serves a one-year term” the new rules introduce a flexible provision
The Board of Directors has established five specialized committees: the Audit Committee the Remuneration and Evaluation Committee the Strategy
that “the term may be extended upon deliberation and approval by the Board of Directors for a maximum of one additional year.” This adds to
and Sustainable Development Committee the HSE and Innovation Committee and the Nomination Committee. Each committee performs its duties
the mechanism’s flexibility in handling specific matters. The rules also optimized the description of the President’s duty of loyalty and diligence
diligently to ensure that all decisions are scientific democratic and legally sound.to ensure better alignment with the Articles of Association. These updates have improved the institutionalization and standardization of corporate
governance laying a solid foundation for sustainable development.Number of Number of
Number of
Committee Primary Responsibilities Meetings Held Proposals
Members
in 2025 Reviewed
2025 The Company held 15 Executive Management Team (EMT) meetings
Responsible for communication supervision and verification of
Audit Committee internal and external audits; reviewing the Company's financial 3 13 30
information and its disclosure.Responsible for formulating remuneration standards and schemes
Remuneration Optimizing Performance of Duties
for directors and senior management; reviewing their performance
and Evaluation 3 6 10
and conducting annual performance reviews; supervising the
Committee The Company has developed the Rules of Procedure for the Board of Directors specifying the notification convening holding and voting procedures
implementation of the Company's remuneration policies. of Board meetings to ensure that all proposals are reviewed compliantly and efficiently. Furthermore the Company has comprehensively reviewed
Strategy and past operational experiences to optimize workflows and scientifically schedule Board meetings. To address the challenge of directors working in
Responsible for researching and advising on the Company's long-
Sustainable several different locations the Company introduced a combination of onsite and electronic voting. Besides the implementation of an e-signature
term development strategies major investment decisions and 3 1 2
Development system for meeting documents has significantly reduced paperwork and improved decision-making efficiency.sustainable development risks and opportunities.Committee
Responsible for researching and providing guidance on the
HSE and Innovation
Company’s long-term annual and phased plans for HSE and 4 4 4 2025 All directors diligently performed their duties achieving a 100% Committee
innovation initiatives. attendance rate at Board meetings.Responsible for researching and advising on selection criteria
qualifications and performance review procedures for directors and
Nomination
senior management; identifying qualified candidates for directors 3 3 5
Committee
and senior management and providing recommendations on their
appointment/replacement to the Board.
23 24Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Board Diversity Investor Protection and Sustainable Dividends
The Company ensures that independent directors maintain an appropriate proportion of the Board to balance the interests of all stakeholders.Diversity of professional backgrounds Special meetings of independent directors are convened on an ad-hoc basis for material matters to ensure that corporate operations comply with
laws regulations and industry standards. The Audit Committee Remuneration and Evaluation Committee and Nomination Committee under the
The Board of Directors comprises members with extensive academic qualifications professional experience or scholarly
Board are all led by independent directors to ensure the independence and impartiality of decision-making.achievements in fields including chemical engineering finance law human resources and strategy.Optimization of Voting Mechanisms
Diversity of composition
The Company has implemented an online voting mechanism enabling minority shareholders to participate in general meetings via digital platforms
The Board consists of nine directors including four Independent Directors representing 44% of the total. The age profile of the and thereby enhancing their engagement. In 2025 the investor participation rate at general meetings remained above 50% excluding matters where
Board ranges from 40 to 80 years. shareholders were required to abstain due to related-party interests.For material matters (such as related-party transactions and equity incentive
schemes) the Company adopts a class voting mechanism to ensure that the voting rights of minority shareholders are fully respected.The Company
actively promotes the cumulative voting system in the election of board members. This strengthens the voice of minority shareholders and promotes
board diversity fostering a more equitable and transparent governance environment for the Company.Diversity of organizational backgrounds
Members of the Board come from a diverse range of organizations including upstream and downstream industry enterprises Establishment of Communication Channels
academic institutions investment firms and strategic consultancies. This diversity equips the Board with the expertise industry
experience and decision-making capabilities necessary to perform their duties. In addition members’ cross-industry experience
enhances the scientific nature and comprehensiveness of decision-making.The Company has established a professional Investor Relations team and a comprehensive multi-layered communication mechanism. In
2025 the team maintained close contact with investors through various channels including investor hotlines timely email correspondence
Diversity of geographic experience the SZSE “Easy Interaction” (irm.cninfo.com.cn) platform and regular earnings conferences. During 2025 the Company responded
Board members have extensive professional experience across multiple regions including North East and South China. This to 54 investor inquiries via the SZSE Easy Interaction platform achieving a 100% response rate. The Company also participated in the
geographic diversity ensures representation of the Company’s key operating markets thereby strengthening the Board's 2025 Guangdong Investor Collective Reception Day and Interim Results Briefing event organized by the CSRC Guangdong Office and the
strategic insight. Guangdong Association of Listed Companies. Furthermore the Company successfully held earnings conferences for the 2024 Annual Report
and the Q1 Semi-annual and Q3 reports of 2025 engaging in text-based interactive exchanges with investors. Through this standardized
smooth and efficient communication system the Company has significantly enhanced the quality and efficiency of investor engagement
earning widespread recognition and trust.Remuneration and Assessment of Directors and Senior Management
The Company is committed to establishing a scientific standardized and transparent remuneration management system for its directors and
senior management ensuring the deep integration of remuneration assessment with corporate strategic objectives and sustainability principles. Inaccordance with the Remuneration Management Policy for Directors and Senior Management the Company adheres to the principles of“ distributionaccording to work” “alignment of authority and responsibility” and the “combination of incentive and restraint.” These principles ensure that
remuneration levels are commensurate with corporate performance individual fulfillment of duties and prevailing market conditions driving the
management to earnestly fulfill their environmental and social responsibilities while pursuing operational excellence.Integration of Performance Review and ESG
The period under review runs annually from January 1 to December 31. Upon the conclusion of the review the Remuneration and Evaluation
Committee determines the performance-based compensation pool based on the Company’s overall operational results. In the design of
performance review indicators the Company has incorporated Environmental Social and Governance (ESG) factors into the senior management
accountability framework. Individual performance contracts for senior management members explicitly cover multiple dimensions including
internal operations customers financial performance and learning and growth. Notably specialized performance indicators for HSE have been
established under the “Internal Operations” dimension the results of which are directly linked to incentive compensation.
25 26Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Annual Dividends During the reporting period Since its listing
The Company highly values shareholder returns. We implement profit distribution plans in strict accordance with the Company Law the Articles of
Association and relevant profit distribution policies and review procedures. Our dividend standards and ratios are clearly defined supported by a The Company released a total of 280 The Company has maintained a
full suite of decision-making procedures and mechanisms. Our profit distribution plan is centered on maximizing shareholder interests ensuring documents including announcements record of zero corrections to its investor relations record forms and
that shareholders benefit from the Company’s growth. Simultaneously the Company balances short-term returns with long-term development to intermediary reports. annual reports.ensure that while rewarding shareholders sufficient funds are retained for future investment and operations. 280 0
Investor Relations Management
The Company has developed the Investor Relations Management Policy and the Work Rules for Handling Investor Complaints. We earnestly
implement regulatory requirements for investor protection and prioritize investor relations management. Investors can maintain effectivecommunication with the Company through diverse channels including investor hotlines timely email correspondence the SZSE “EasyInteraction” (irm.cninfo.com.cn) platform and the Company’s portal website to gain insights into the Company’s production operations and
investment development. The Company has designated media outlets qualified for securities market information disclosure and CNINFO (http://
www.cninfo.com.cn) as its official disclosure platforms ensuring that all shareholders have equal access to information.In 2025
The Company participated in 31 Conducted 48 re verse
broker strategy conferences roadshows
Published five investor
relations activity
disclosure reports.In 2025 the Company issued the Shareholder Return Plan for the Next Three Years (2025-2027) which specifies the proportions and conditions
for cash dividends over the next three years based on a thorough consideration of the Company’s development stage profitability and funding 31 48 5
requirements. This initiative further strengthens the protection mechanisms for minority investors and reflects the Company’s core philosophy of
rewarding shareholders and sharing development gains providing an institutional guarantee for maximizing shareholder interests.In the absence of any material investment plan or significant capital expenditure the Company shall distribute dividends in cash. The cumulative
profits distributed in cash over the most recent three years shall be no less than 30% of the average distributable profits realized in those three years.While implementing the above cash dividend distribution the Company may also issue bonus shares.When formulating a profit distribution plan the Board of Directors shall determine the Company’s profit distribution policy after comprehensively
considering factors such as the characteristics of the industry in which the Company operates its ranking within the industry competitiveness
profitability the Company’s stage of development as assessed in light of these factors and whether there are any significant capital expenditure
arrangements.Information Disclosure
During the reporting period the Board of Directors faithfully performed its information disclosure obligations by completing the information
disclosure related work truthfully accurately fully and timely in strict accordance to the Company Law the Securities Law the Rules Governing the
Listing of Shares on the Shenzhen Stock Exchange and the Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange –
Standardized Operation of Main Board Listed Companies as well as other relevant laws administrative regulations departmental rules normative
documents and the Company’s Information Disclosure Management Policy and Work Rules for the Board Secretary. This ensures that investors
were promptly informed of material matters of the Company and that their interests were protected to the maximum extent.
27 28Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Business Ethics Anti-Corruption Training and Cultural Education
At Great River Smart integrity and compliance serve as the foundation for sustainable development supported by a systematic framework for anti-
Business Ethics Governance corruption training and cultural education. Institutionally the Company has established a dedicated team of Integrity Commissioners and consistently
updates position-specific Integrity Risk Inventories ensuring a closed-loop management mechanism through the universal signing of integrity
Anti-Commercial Bribery and Anti-Corruption Organizational Structure commitment letters. In terms of training and education the Company organizes specialized legal training and integrity lectures delivered by the Party Committee Secretary utilizing typical cases to interpret disciplinary requirements and fortify employees’ psychological defenses against corruption.The Company's integrity building and anti-corruption efforts are jointly coordinated by Great River Smart’ Discipline Inspection Committee and the Furthermore by integrating integrity philosophy into team building through oath-taking ceremonies commitment letter signings and collaborative
mapping of blueprints the Company transforms integrity into a conscious collective action. This normalized and all-staff approach to integrity building
Audit Department ensuring that the philosophy of integrity and compliance is deeply integrated into corporate governance and daily operations. As at Great River Smart injects lasting momentum into the Company’s high-quality development.a specialized body for promoting integrity Great River Smart' Discipline Inspection Committee is responsible for developing the integrity guidelines
establishing a sound institutional framework centered on anti-corruption and business ethics working with the Audit Department to investigate and
handle violations of discipline and regulations and reporting regularly to the Company on relevant work progress.Institutional Building
The Company has put in place an all-comprehensiveal multi-layered defense line for integrity and compliance based on the Employee Handbook
and encompassing policies on integrity supervision codes of conduct whistleblowing management and integrity agreement management. In 2025
the Company continued to refine the Whistleblowing Management Measures and Employee Communication Management Rules further optimizing
the handling procedures and management requirements for misconduct. Regarding employee management the Company strictly enforces the Letter
of Commitment for Integrity in Professional Conduct requiring all employees particularly those in key positions to sign this commitment. Integrity
Great River Smart Logistics Code of Conduct Code of Conduct
performance is integrated into performance review and serves as a critical basis for appointments and dismissals. Oath-Taking Ceremony Oath-Taking Ceremony
Employee Integrity Management
The Company continuously strengthens integrity awareness among staff. New hires and personnel in high-risk positions are required to sign
the Letter of Commitment for Integrity in Professional Conduct explicitly prohibiting bribery embezzlement or any other improper business
activities. In 2025 all the staff members of the Company signed the integrity commitment letter and the Company continued with anti-
corruption training—both online and offline—covering directors senior management and frontline employees. Besides the Company also
intensified integrity reviews for personnel up for awards or promotion to effectively prevent misconduct.Integrity System Building
Great River Smart held an Integrity Work Meeting for comprehensiveattended a training session themed “ Building a Solid Line of Integrity toThe Company implements classified and tiered integrity management across all centers departments and subsidiaries. Led by the Discipline deployment of integrity risk prevention and control.Safeguard the Enterprise's Future”.Inspection Committee the Company conducts ongoing integrity risk screenings and special inspections focusing on key positions critical
links and high-risk areas. In 2025 all centers departments and subsidiaries were organized to develop Integrity Risk Prevention and Control
Tables and conduct routine self-inspections and rectifications. In conjunction with internal inspections and audits a closed-loop rectification
mechanism was implemented to ensure all identified issues were fully and effectively addressed.Supervision and Risk Control in Key Departments
The Company focuses on key areas such as bidding and procurement engineering construction and production safety. We continuously refine
specialized supervision mechanisms optimize institutional workflows and strengthen pre-emptive prevention and mid-process supervision.By formulating annual supervision plans conducting special inspections and accepting on-site whistleblowing (with real-name and evidence-based reports) the Company systematically advances an integrity management system where “one dares not cannot and has no desire to be Chemical Warehousing & Integrated Logistics Segment held a seminarcorrupt.” During the reporting period the Company maintained a clean and upright business atmosphere with no major corruption-related Terminal & Tank Commercial Center successfully concluded a team on integrity promotion and business
cultural event themed “Integrity and Unity for Win-Win Outcomes.”
whistleblowing incidents recorded. which was also its team-building event.
29 30Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Whistleblower Protection Processing Timing
The Whistleblowing Management Policy explicitly mandates confidentiality protection: all employees with access to reported information must
maintain strict confidentiality regarding these disclosures. The heads of organizations bear primary responsibility for witness and whistleblower For incident processing timing the Discipline Inspection Committee mandates that all responsible units adhere to the
protection. They must implement appropriate safeguards to ensure these individuals’ fundamental rights remain protected and to prevent any “Three Ones” timeline protocol ensuring prompt acknowledgment and proactive case management.form of retaliation against them. In 2025 there were no incidents of privacy breaches involving anonymous whistleblowers.Valuing Reports and Complaints Creating a Clean and Upright Atmosphere “Three Ones” timeline requirements
The Discipline Inspection Committee has implemented key policies including the Whistleblowing Reward and Punishment System and the Gift and
Cash Management Measures (Trial). These frameworks standardize procedures for handling reported violations strengthen oversight mechanisms
and help prevent misconduct. By protecting the legitimate interests of employees customers and business partners these measures support the
Company’s sustainable growth and development. The Company has also implemented a comprehensive whistleblower protection system. When
the Discipline Inspection Committee receives documented non-anonymous reports it initiates formal investigations resulting in detailed findings.Whistleblower confidentiality is maintained throughout this process. Depending on investigation outcomes case severity (whether proactive or R e s p o n d w i t h i n o n e Confirm case filing within Complete investigation
working day: After receiving one week: After receiving a within one month: After
reactive misconduct) and financial implications sanctions may range from employment termination to referral to legal authorities. A reward system a report respond to the report confirm whether an confirming case f i l ing
recognizes whistleblowers and witnesses who contribute to these investigations. whistleblower within one investigation needs to be complete the investigation
working day; initiated within one week; and respond with results
within one month.Reporting Channels
The Company has established six types of reporting channels for different groups including hotlines email and the official website.Telephone：0769-22893898 Email：hcjw@grgroup.cc
Compliant Operations
Website：Great River Smart Logistics Party- Letter：Great River Smart Integrity and
building Platform Secretary's Mailbox: Discipline OfficeGR Building Songke Yuan 1
http://appgrgroup.cc:9098 Songshan LakeDongguan City 513830 Guangdong Province
Compliance Governance Framework
In-person：Office of the Secretary of the
Discipline Inspection Committee GR Building Others：Other forms deemed appropriate The Company has established a standardized compliance governance framework as a fundamental safeguard for lawful and compliant operations
Songke Yuan 1 Songshan LakeDongguan City by the whistleblower
Guangdong Province and sound development. The Company consistently elevates compliance management to a strategic level and strictly adheres to applicable laws
and regulations industry standards and regulatory requirements of the country. Taking into account its business layout and operating model
the Company has developed a comprehensive compliance governance framework with clear hierarchy as well as well-defined powers and
responsibilities.Target Groups
Anti-Unfair Competition and Anti-Monopoly
All internal staff and external stakeholders
The Company conducts business activities in accordance with the principles of voluntariness equality fairness and integrity. We strictly comply with
the Anti-Monopoly Law of the People’s Republic of China and the Anti-Unfair Competition Law of the People’s Republic of China among other
relevant laws and regulations. We actively guide employees to uphold sound business conduct and safeguards fair competition within the industry.
31 32Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Related-Party Transaction Management Risk Identification
The Company strictly complies with relevant laws regulations and normative documents including the Company Law and the Rules Governing the Listing
of Shares on the Shenzhen Stock Exchange as well as the provisions of the Articles of Association. It has formulated and continuously improved the Policy
on Decision-Making for Related-Party Transactions. Adhering to the principles of integrity fairness procedural compliance and arm’s-length pricing the
Company ensures that all related-party transactions are conducted in the best interests of the Company and all shareholders with particular emphasis on
preventing the risk of improper benefit transfer and protecting the legitimate rights and interests of minority shareholders.The Company has established a stringent hierarchical authorization and approval mechanism for related-party transactions. Material related-party
transactions are subject not only to review by the Independent Directors at dedicated meetings but also to approval at shareholders’ meetings. Risk Identification Risk Response Monitoring and
During deliberations at the meetings of the Board of Directors and the shareholders’ meetings related directors and related shareholders are and Assessment and Control Reporting Mechanism
required to abstain from voting ensuring the independence and fairness of the decision-making process. T h e C o m p a n y e m p l o y s a For identified material risks the The Company has established
In 2025 the Company’s material related-party transactions consisted exclusively of guarantees provided by related parties to the Company combination of qualitative and Company formulates specialized a routine risk monitoring and
and its subsidiaries without fees demonstrating their commitment to the Company’s long-term strategic development. All material related- quantitative methods for risk r e s p o n s e p l a n s d e f i n i n g reporting mechanism. Centers
party transactions underwent rigorous review and disclosure in accordance with regulatory requirements and company policies. Related parties identification. At the beginning of responsible parties response and departments regularly update
each year the Risk Management strategies (avoidance transfer Risk Information Identification
consistently abstained from relevant voting procedures ensuring that these transactions served the interests of the Company and all shareholders Committee organizes all centers mitigation or acceptance) and Ta b l e s R i s k Reg i ste r s a n d
without adversely affecting operational performance. and departments to conduct rectification deadlines. Routine Risk Control Matrices. The Risk
a co m p re h e n s i v e re v i e w o f operational risks are strictly Management Supervision Group
strategic market operational constrained through internal conducts periodic inspections and
Tax Compliance f i n a n c i a l co m p l i a n ce a n d control manuals authorization evaluations tracking rectification
emerging risks (such as climate g u i d e l i n e s a n d S t a n d a r d progress. The Risk Management
The Company consistently upholds the philosophy of law-based and standardized operations. We strictly abide by national tax laws and regulations change and data security). By Operating Procedures (SOPs). In Working Group regularly prepares
and have formulated the Tax Management Rules to ensure the timely and accurate filing and payment of all types of taxes. During the reporting establishing a risk database and key risk areas such as exchange material risk monitoring reports for
utilizing risk matrix tools we rate fluctuations supply chain the Risk Management Committee.period the Company paid a total of CNY 127.58 million in taxes and fees.assess the likelihood and impact disruptions and environmental Fu r t h e r m o re t h e C o m pa n y
of risks to scientifically categorize c o m p l i a n c e w e s e t e a r l y - continuously refines emergency
them as“ material”“ important” warning indicators for dynamic plans for material r isks and
Risk Management or “general” risks providing a monitor ing to ensure rapid organizes regular drills to enhance key basis for the Company's risk response to risk events if any. crisis response capabilities.management.Risk Management System
To improve the risk management governance structure and level of risk management Great River Smart Risk Management Committee has been Intellectual Property
established to assist the senior management in fulfilling their risk management duties ensure that the Company systematically and effectively
identify assess respond to and monitor all types of material risks keep risks within a tolerable range and guarantees the realization of strategic
goals. The Committee reports its work directly to the management. Intellectual Property Protection
The Company attaches great importance to intellectual property (IP) protection and strictly abides by relevant legal requirements. Integrated with our R&D
Risk Management Committee Risk Management Working Group innovation and business operations we have built a systematic full-chain IP management system and formulated the Intellectual Property Management
The leading body for risk management work Responsible for specific risk management and Regulations. This system ensures effective control over the entire lifecycle of IP from acquisition and maintenance to application and protection.response to risk events The Company has set up a dedicated IP management team under the overall leadership of the HSE and Innovation Committee. The team is responsible for
building the IP management system managing R&D projects and handling IP management-related affairs.Risk Management Supervision Group Centers/departments
As of the end of the reporting period the Company has been granted 225 patents (including 32 invention patents)
Responsible for supervising and inspecting Actively participate in risk management work and software copyrights.various risk management tasks 51
33 34Annual Sustainability Report
Great River Smart Logistics Co. Ltd.
03
Environmental Management
and Ecological Protection
Environmental Compliance Management 37
Pollutant Dischage 44
Waste Management 45
Water Resource Management 46
Circular Economy 47
Energy Management 49
Ecosystem and Biodiversity Protection 51
Climate Change Response 52
35 36Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Environmental Management and The Company continuously improves emergency response capabilities and safety awareness among personnel through various environmental
emergency drills. According to the 2024 annual environmental emergency drill plan the Company and its subsidiaries conducted 53 environmental
Ecological Protection emergency response drills. Additionally joint emergency exercises on various themes were carried out in collaboration with local fire rescue teams
port service companies and other partners.Environmental Compliance Management
Joint Emergency Drills Conducted at Storage Areas under Great River Smart
Environmental Management System
As a hazardous chemical storage company Great River Smart has always considered safety and environmental protection to be vital to its corporate
development. The company proactively implements comprehensive safety and environmental protection measures to establish itself as an industry
benchmark in HSE (Health Safety and Environment). To create an efficient and distinctive HSE management system the company has developed a
three-tier management structure.The Health Safety and Environment and Innovation Committee serves as the specialized working
body established under the Board of Directors to be primarily responsible for establishing the
First Tier Company's medium and long-term HSE planning as well as promoting guiding supervising and evaluating related HSE initiatives.The "Health Safety and Environment Management Office" has been established to be responsible
for the HSE work of Great River Smart and equipped with dedicated environmental management
Second Tier personnel.Each functional center and terminal company has established dedicated HSE
Third Tier management units with specialized environmental protection personnel.Great River Smart Logistics has developed internal regulations in accordance with the Environmental Protection Law of the People's Republic
of China the Water Pollution Prevention and Control Law of the People's Republic of China the Air Pollution Prevention and Control Law of the
People's Republic of China the Environmental Noise Pollution Prevention and Control Law of the People's Republic of China the Environmental
Impact Assessment Law of the People's Republic of China the Cleaner Production Promotion Law of the People's Republic of China and the
Regulations on Environmental Protection Management for Construction Projects. These internal policies include the Great River Smart Logistics
Guidelines for Standardized Management of Solid Waste the Great River Smart Logistics Wastewater Treatment Management System the Great
River Smart Logistics Environmental Protection Monitoring Management System the Great River Smart Logistics Energy Conservation and Emission
Reduction Management Measures the Great River Smart Logistics Vapor Recovery Unit Management System the Great River Smart Logistics
Emergency Environmental Management System the Great River Smart Logistics Environmental Information Disclosure Management System
the Great River Smart Environmental Protection Supervision and Inspection System the Great River Smart Logistics VOCs Control Management
Regulations for Loading and Unloading and the Great River Smart Logistics General Solid Waste Management Measures. During the reporting
period the Company and its subsidiaries have strictly conducted environmental management activities in accordance with these environmental
management systems. Management Measures for Environmental Risk Prevention
In 2025 the Company organized 13 subsidiaries to conduct 8 self-inspections against standard checklists including the Criteria for Determining
Environmental Risk Management Major Hidden Dangers in Ecological and Environmental Accidents the Technical Specifications for the Setting of Monitoring Points at Pollutant
Discharge Outlets of Pollutant Discharging Units the Regulations of Jiangsu Province on the Prevention and Control of Environmental Pollution
Environmental Risk Assessment Mechanism and System by Solid Wastes the Great River Smart Hazardous Chemicals Major Hidden Danger Self-inspection Table the Technical Guidelines for Emergency
Emission Reduction in Key Industries During Heavy Pollution Weather (2020 Revised Edition Huan Ban Da Qi Han [2020] No. 340) and the Self-
Great River Smart has established a comprehensive environmental risk management system in accordance with the Environmental Protection Law
of the People's Republic of China the Emergency Management Measures for Environmental Incidents and the National Environmental Emergency inspection Table for Enterprise Environmental Information Disclosure Management Measures. More than 90 potential hazards were identified with
Response Plan. The Company has implemented the Emergency Response and Management Procedure the Accident Investigation and Handling 100% tracked and remediated according to plan. All terminal facilities maintained discharged pollutants within permissible emission limits and all
Management Procedure and the Great River Smart Logistics Emergency Environmental Management System to prevent and mitigate environmental wastewater treatment facilities operated effectively. Annual environmental monitoring indicators met required standards and terminal companies
incidents control and eliminate environmental hazards and enhance overall capability to respond to and manage environmental emergencies. These
measures aim to safeguard enterprise operations protect employee lives and property minimize potential damage to the company and society from demonstrated increasingly proactive management of VOCs leakage points from storage tanks. Awareness of controlling VOC leakage points in
environmental incidents and promote comprehensive coordinated and sustainable development. storage tanks at the terminals is continuously strengthening gradually shifting from passive to active management.
37 38Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Cleaner Production and Green Manufacturing
The Company has established a comprehensive environmental management system and has continuously promoted environmental management
system certification cleaner production initiatives and green port construction across all business segments. At present all subsidiaries in the
Company's tank storage segment have obtained ISO14001 environmental management system certification.Subsidiaries of Great River Smart have conducted green port rating evaluations in accordance with the provisions of the Guidelines for Grade Evaluation of
Green Ports. Currently 3 subsidiaries including Nantong Power Shell Petrochemical have passed the green port evaluation and certification.Great River Smart Logistics has organized cleaner production certification applications in accordance with the Cleaner Production Promotion Law
of the People's Republic of China and the Cleaner Production Audit Methods. To date 5 enterprises including Dongguan Evergrowing Terminal have
successfully passed the audit certification.Environmental Management System Certification Cleaner Production Audit and Green Port Certification Companies
Changshu Great River Changshu Great smart Nantong Power Shell Petrochemical
ISO14001 Environmental Management System certification
Dongguan Evergrowing Terminal Dongguan Great River Petrochemical Terminal Dongguan Hongyuan Terminal
Changzhou Great River Nanjing Great River Nantong Great Smart
Fujian Gangfeng Energy Zhongshan GR Terminal Taicang Power Shell Petrochemical
Rizhao Great River Cangzhou Great River
39 40Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Cleaner Production Audit Green Port Rating Certification (3-star Level)
Dongguan Evergrowing Terminal Nantong Power Shell Petrochemical Changzhou Great River Nantong Power Shell Petrochemical
Nantong Great Smart Changshu Great River Nantong Great Smart
Dongguan Great River Petrochemical Terminal
41 42Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Environmental Protection Culture Promotion Pollutant Discharge
The Company has integrated energy conservation and environmental protection education into its regular activities. By organizing emergency drills
and conducting various environmental protection themed training activities it has widely disseminated knowledge and successful experiences in Pollutant Emission Management
energy conservation and environmental protection effectively enhancing the emergency response capabilities and environmental awareness of all
Great River Smart strictly adheres to the Water Pollution Prevention and Control Law of the People's Republic of China the Urban Drainage and
employees. A total of 26 sessions were organized targeting scenarios such as hazardous chemical leak containment valve leak plugging training
Sewage Treatment Regulations the Integrated Wastewater Discharge Standard the Comprehensive Emission Standard for Air Pollutants the
environmental protection skill improvement oil environmental protection equipment training and office energy conservation and consumption
Emission Standard for Air Pollutants from Oil Storage Depots the Control Standard for Fugitive Emission of Volatile Organic Compounds and other
reduction with a total of 857 participants. relevant regulations. The Company has established internal policies such as the Great River Smarter Logistics Wastewater Treatment Management
System the Great River Smart Logistics VOCs Control Work System the Great River Smart Logistics Environmental Protection Monitoring
Management System the Great River Smart Logistics Vapor Recovery Unit Management System and the Great River Smart Logistics VOCs Control
Management Regulations for Loading and Unloading to standardize pollutant management.Pollutant Treatment Measures
The Company operates 11 wastewater treatment systems and 2 vessel cleaning stations for ship-generated pollutants. The wastewater treatment
system collects and processes both industrial and domestic wastewater to meet standards before discharge to the municipal sewage plant. The
vessel cleaning stations handle the reception and disposal of chemical tank washing water and oily wastewater from inland vessels. Great River
Smart Logistics treats production wastewater and domestic sewage from its facilities to meet the required standards through its wastewater
treatment systems. Meanwhile the company continuously optimizes wastewater treatment processes to reduce wastewater generation explores
process improvements to boost the operational efficiency and effluent quality of sewage treatment stations and achieves reclaimed water reuse
thereby reducing the total discharge of pollutants while saving tap water consumption.Total treated effluent discharge (2025) Reclaimed water reuse
80695.98 tons 20979 tons
Compared with 2024
Cangzhou Great River conducted an activity themed Rizhao Great River conducted an activity themed Compared with 2024
“GR Charity Day” “GR Charity Day” ↓ 17.77% ↓ 3.55%
The Company actively advances the upgrading of VOC source reduction technologies and has established a full-process VOCs refined control system:
In terms of exhaust gas management it strictly carries out LDAR (Leak Detection and Repair) programs on schedule. It also continuously explores
new vapor recovery and exhaust gas treatment technology pathways to achieve VOC emission reduction targets through technological iteration and
support green and low-carbon development based on annual oil product turnover tank structural characteristics loading and unloading processes
and the current status of exhaust gas collection and treatment. In 2025 the Company continued its LDAR and environmental emission reduction
efforts reducing VOC emissions by 507.241 tons throughout the year. In exhaust gas treatment the Company actively explores new technologies
to collect and treat exhaust gases from storage tanks loading operations and vessel loading. The treatment processes combine a variety of
technologies such as "condensation + adsorption" "biodegradation" and "RTO" achieving 100% compliance in the treatment of organized
emissions.Based on the principle of "source noise reduction and dynamic control" Great River Smart has systematically constructed a noise pollution
prevention and control system to minimize the impact of operations on the surrounding environment.In 2025 a total of 40 noise monitoring with 100% of monitoring results
Training Session: Closing a Valve Plugging a Leak Point
sessions were conducted meeting the required standards.
40100%
43 44Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Waste Management Water Resource Management
Waste-Related Governance Water Resource-Related Governance
Great River Smart strictly adheres to the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Great River Smart strictly adheres to the Water Pollution Prevention and Control Law of the People's Republic of China the Urban Drainage and
Wastes the Storage and Landfill Pollution Control Standard for General Industrial Solid Waste the Hazardous Waste Storage Pollution Control Sewage Treatment Regulations the Integrated Wastewater Discharge Standard and other relevant regulations. The Company has established an
Standard and other relevant regulations. The Company has established internal policies such as the Great River Smart Logistics Guidelines for energy consumption working team to manage water electricity nitrogen and other energy sources and has established internal policies such as
Standardized Management of Solid Waste and the Great River Smart General Solid Waste Management Measures to implement differentiated
the "Great River Smart Wastewater Treatment Management System" to standardize wastewater treatment management ensuring that wastewater
management of general industrial solid waste and hazardous waste. In accordance with relevant regulations the company has constructed
"Hazardous Waste Storage Warehouses". Through inventory analysis the company identifies major sources of solid waste and optimizes related treatment work is systematically and routinely managed.processes to reduce waste generation.Waste-Related Strategy and Measures Water Resource-Related Strategy
The Company adheres to a waste lifecycle management strategy featuring source reduction process control compliant disposal and continuous
As a petrochemical storage enterprise Great River Smart adheres to a water resource management strategy featuring "compliant water access
carbon reduction. It strictly complies with the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by
Solid Wastes the Measures on Administration of Hazardous Wastes Business License and other laws and regulations. Waste management is fully efficient utilization risk prevention and control and continuous water conservation". It strictly adheres to the Water Law of the People's Republic
integrated into the entire production and operation process with compliance control as the bottom line source reduction as the core and risk of China and the Water Pollution Prevention and Control Law of the People's Republic of China as well as other regulations and systematically
prevention and control as the focus to systematically reduce the environmental impact of waste improve resource utilization efficiency and support identifies and responds to water resource-related risks and opportunities thereby ensuring operational stability and sustainable development. The
the Company's green low-carbon and sustainable development. production and domestic water of the Company is accessed from the municipal water supply system. Water-related procedures are completed in
The waste generated from the Company's operations is primarily hazardous waste. The Company has identified core risks such as compliance supervision accordance with regulations and standardized water usage management is implemented. In the operational process water resources are mainly
disposal cost fluctuations and environmental safety as well as development opportunities including cost reduction at the source and enhanced green used for production processes and auxiliary facilities. All industrial wastewater from storage facilities is treated to meet standards by on-site pre-
competitiveness. These matters directly impact the Company's operating costs capital expenditures and long-term operational stability. treatment facilities before being discharged to the local municipal pipe network where it is further treated by centralized municipal wastewater
The Company does not engage in waste recycling operations. All hazardous waste is entrusted to legally qualified third parties for compliant treatment plants before being released into the natural environment.disposal. Through specialized training and process optimization the Company reduces waste generation at the source establishes a full-process
inventory management mechanism continuously improves waste management levels and ensures green and compliant operations.Waste Treatment Indicators and Targets Water Resource Management Indicators and Targets
Standardized solid waste management requirements particularly for hazardous waste management primarily include the implementation of Great River Smart collectively treats production wastewater and domestic sewage from its facilities through its wastewater treatment systems while
management systems including hazardous waste identification signage hazardous waste declaration registration transfer manifests and operating continuously optimizing the treatment processes to reduce wastewater generation at the source. It also actively explores more efficient wastewater
permits. To ensure standardized management of solid waste throughout the lifecycle at all terminal facilities an 8% reduction target has been set treatment technologies improves treatment plant operational efficiency enhances effluent quality and implements water recycling. These
at the group level. Bases/subsidiaries break down this overall target strictly implement the eight solid waste management systems manage the initiatives have reduced the total discharge of pollutants while effectively conserving freshwater resources.sources of hazardous waste and reduce hazardous waste generation at the source. The Company has established a full-process hazardous waste
record implemented anti-leakage anti-loss and other protective measures for storage facilities formulated environmental emergency response
plans and conducted regular drills. In 2025 the total water consumption of the Company was 456922 tons while 20979 tons were recycled as reclaimed.In 2025223515 tons of hazardous waste were transferred to qualified hazardous waste reception units in accordance with relevant
regulations representing a 45.5% decrease compared to 2024. Water Resource Management Measures
To mitigate physical risks to water resources the Company has installed groundwater monitoring wells. From pre-implementation through the
entire operational lifecycle of the project we conduct annual groundwater quality testing across the storage facility area enabling early warning
systems and ensuring water resource security. To address potential impacts of water resource risks on daily operations Great River Smart Logistics
adheres to the principles of efficient water utilization and circular management. In 2025 the Company introduced the storage tank high-pressure
cleaning technology took spray control measures for high-temperature weather conducted assessments and optimizations of domestic water
usage scenarios and continuously located and repaired 8 underground water pipeline leakage points saving approximately 3500 tons of water
and effectively reducing operational water resource losses. The Company will continue to optimize its water management system by upgrading
monitoring technology and implementing water-saving process modifications to strengthen dynamic control of water supply systems ensuring
rational allocation and recycling of water resources in storage facility maintenance and other operational scenarios.
45 46Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Circular Economy Circular Economy Indicators and Targets
The Company's core overall circular economy goal is "efficient resource cycling reduction and emission control at the source and compliant closed-
Circular Economy-Related Governance loop control". Closely aligned with petrochemical storage operational scenarios the Company has established specific quantitative indicators and
implementation targets around two core directions: recovery of exhaust gas as resources and full-process solid waste management to continuously
In resource recycling management the Company follows the core principles of "green low-carbon closed-loop throughout the value chain and improve the effectiveness of circular economy management specifically as follows:
controllable risk" while adhering to regulations such as the Energy Conservation Design Standards for Petroleum Depots and the Hazardous
Waste Storage Pollution Control Standards. Through technological innovation and process optimization the Company achieves efficient resource
utilization and reduces its environmental footprint. In terms of system development the Company has formulated and continuously improved 01 Indicators and Targets for Recycling of Exhaust Gas as Resources
specialized systems such as the Energy Conservation and Consumption Reduction Management System the Solid Waste Management Measures
and the Water Resource Conservation and Recycling Management Regulations. These systems clarify the division of responsibilities work processes Core Targets：To maximize the recycling and utilization of volatile vapor and chemical waste gas from storage operations through special
target requirements and assessment mechanisms for circular economy management and extend management requirements across the entire optimization and routine operation and maintenance of the vapor recovery system and to reduce air pollutant emissions while improving resource
production and operation process. recycling and utilization efficiency and achieving a win-win for environmental and economic benefits.Control Indicators：100% integrity rate and stable operation rate of vapor recycling units; at least 180 tons of annual vapor and recyclable chemicals
Circular Economy-Related Measures recycled; full coverage of all terminals by special rectification and O&M management of vapor recycling.Implementation Results：In 2025 the Company established a special innovation working team for vapor recycling rectification which routinely
Closely aligned with the operational characteristics of the petrochemical storage industry and centering on the core circular economy concept carried out maintenance of vapor recycling units inspected and cleaned liquid accumulation in pipelines and ensured efficient operation of the
of "resource utilization reduction and harmless treatment" the Company implements the following special measures with a focus on the entire units throughout lifecycle. Throughout the year a total of over 230 tons of oil products methanol and other chemicals were recycled and returned
storage operation process. These measures fall into three main categories: to customers achieving a resource utilization value of approximately CNY 1.50 million and exceeding the annual recycling targets while harvesting
the dual benefits of VOC emission reduction and recycling as resources.
01 Special measures for the utilization and recycling of vapor and volatile materials as resources;
02 Indicators and Targets for Solid Waste Reduction and Standardized Control
02 Special measures for solid waste reduction and full-process closed-loop control;
Core Targets：To achieve a 100% harmless and compliant disposal rate for solid waste strictly control the environmental risks of solid waste
03 Safeguard measures for circular economy management (including system assessment and continuous optimization etc.). and enhance solid waste recycling and standardized management levels through standardized upgrades of storage facilities and closed-loop
management of the disposal chain centered on solid waste reduction at the source standardized process control and full-process traceability.Control Indicators：100% compliant disposal rate for hazardous waste and general industrial solid waste; 100% standardized construction coverage
rate for hazardous waste storage facilities; 100% full-process traceability rate for solid waste generation - transfer - disposal.Implementation Results ：In 2025 the Company completed the standardized upgrades to hazardous waste management facilities to achieve unified
separate collection compliant storage and centralized disposal of solid waste such as waste oil and domestic garbage generated during daily
operations. Through unannounced vehicle-tracking visits to solid waste disposal units the Company achieved closed-loop control of the entire solid
waste chain. The compliant solid waste disposal rate for the year was 100% fully achieving the annual control target.Raw Materials and Packaging Materials
From the construction to the decommissioning phases of storage facilities the Company assesses resource consumption and environmental impact
prioritizing recyclable building materials and low-emission sealing materials while extending equipment service life to reduce lifecycle resource
waste. Great River Smart consistently adheres to the core 3R circular economy concepts of "Reduce Reuse Recycle" and actively advances drum
recycling initiatives.In 2025 the Company achieved 719763 entries of recycled drums (based on the 200L steel drum measurement standard).
47 48Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Energy Management Energy Management Measures
Energy-Related Governance “The 2026 Great River Smart Energy Consumption Cost Control Measures” proposes 6 core common measures covering six dimensions:
procurement equipment management technology monitoring and business collaboration specifically as follows:
Great River Smart consistently adheres to the core energy management concepts of "energy conservation and carbon reduction green development
compliance leadership and joint governance by all staff". It fully integrates energy management into the Company's ESG governance and entire 1.Unify procurement negotiation to reduce the unit price of basic energy consumption
production and operation process and strictly adheres to the Law of the People's Republic of China on Energy Conservation and other laws and
regulations. It has built an energy management system featuring clear responsibilities and closed-loop control. It systematically promotes efficient Consolidate the procurement needs for basic energy consumption such as nitrogen industrial water and electricity across the Group.energy utilization and low-carbon transition to support the achievement of the Company's carbon peaking and carbon neutrality goals. The Conduct collective negotiations under the leadership of the headquarters rather than independent procurement model of each base. Sign
Company has established a comprehensive all-dimensional energy management system and formulated the Great River Smart Energy Conservation long-term framework agreements with suppliers to reduce the unit price of core energy consumption while agreeing on "volume-based
and Emission Reduction Management Measures to clarify energy management responsibilities energy consumption control requirements tiered discount" clauses.assessment mechanisms and work processes institutionalizing and standardizing energy management requirements to achieve closed-loop
control throughout the energy lifecycle.The Company has established a top-down energy governance system that is strictly enforced at every level:
2. Upgrade high-energy-consumption equipment to improve energy utilization efficiency phase by phase
Upgrade old motors pumps and handling machinery that have outlived their service life on a "base-by-base and quarter-by-quarter" basis
according to actual conditions. Prioritize the replacement of old outdated and ineffective equipment with excessive energy consumption.Board of Directors Operations Center Energy Consumption Assessment Team Frontline Execution Entities
Responsible for approving the C o o r d i n a t i n g a l l e n e r g y Established to be responsible Each terminal and subsidiary 3. Strengthen non-production energy consumption control to reduce energy waste
Company's energy strategies m a n a g e m e n t p r o c e s s e s for daily management tasks strictly implement energy
annual energy-saving targets responsible for identifying energy such as the development of management requirements
is responsible for their own Standardize the management of domestic electricity and water use. Install smart electricity meters and water meters in offices and
and major energy investment risks and opportunities breaking energy management systems
down energy targets controlling energy consumption statistics energy consumption control
dormitories of each base that are equipped with a setting of "quota warning" mechanism. Costs for consumption exceeding the quota are
matters and supervising the implementation of energy-saving
annual budgets promoting and monitoring promotion of calculated based on tiered rates. Promote energy-saving lighting with cool light source and water-saving fixtures. Turn off non-essential 24-i m p l e m e n tat i o n o f e n e rg y technological improvements
special initiatives linking energy energy-saving technological hour operating equipment (e.g. redundant air conditioners and backup lighting).management strategies and a n d d a i l y o p e rat i o n a n d p e r fo r m a n ce i n d i cato r s to i m p r o v e m e n t e n e r g y
achievement of performance as maintenance management and executive remuneration and consumption assessment as ensures energy management
the highest decision-making body regularly reporting progress to the well as training and publicity requirements are implemented
for energy management. Board of Directors. under the daily leadership of the throughout the entire operation 4. Optimize processes and recycling technologies to reduce energy consumption and waste
HSE Management Office. process.Optimize loading/unloading operation processes at bases with nitrogen requirements reduce equipment idle time through "centralized
scheduling and off-peak operations" and simultaneously adjust the insulation measures for storage tanks to reduce heating/cooling energy
consumption.Energy-Related Strategy
The Company's core energy strategy is "consumption control at the source technology-driven efficiency improvement structure optimization and
energy conservation by all staff". Focusing on petrochemical storage operational scenarios it promotes energy management in four main directions: 5. Establish an energy consumption monitoring and early warning system for dynamic control
Compliance Leadership and Bottom-line Control: Build a group-level energy consumption data monitoring platform to collect production electricity water and nitrogen usage data from
each base and automatically generate "energy consumption trend charts" and "comparison tables of consumption per unit". Set early
Strictly adhere to national laws regulations and supervisory requirements on energy conservation ensure full-process warning thresholds for key indicators (e.g. electricity consumption per unit exceeding 1.5kWh/ton). When a warning is triggered designated
compliance in energy management and eliminate energy waste and non-compliant energy use. personnel will investigate the cause to ensure timely rectification of abnormal energy consumption.Reduction at the Source and Efficiency Improvement:
Comprehensively reduce energy consumption and improve energy utilization efficiency by optimizing storage operation processes
improving energy efficiency of equipment and promoting office energy conservation with energy consumption assessment as a tool.
6. Clarify responsibility and assessment mechanisms to promote energy conservation participation by all staff
Structure Optimization and Low-carbon Transition:
Gradually optimize the energy consumption structure promote the substitution of clean energy advance energy-saving technological
improvement projects and support the achievement of the Company's carbon reduction targets. Include energy consumption indicators (e.g. electricity consumption per unit throughput and total energy costs) in the performance assessment of
the persons in charge of the bases. Those meeting the targets receive performance rewards while those failing must rectify within a specified period.Full Participation and Cultural Empowerment: Conduct "energy conservation and consumption reduction training" on a regular basis encourage employees to propose energy-saving suggestions
Integrate the green development concept into daily operations conduct energy-saving publicity and training advocate low-carbon office (e.g. optimizing operating processes and offering equipment maintenance techniques) and provide cash rewards for effective suggestions adopted
practices and green commuting create a corporate culture of energy conservation by all staff and build a resource-conserving enterprise. to stimulate the enthusiasm for energy conservation among all staff.
49 50Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Ecosystem and Biodiversity Protection Climate Change Response
As an enterprise in the petrochemical storage industry Great River Smart Logistics consistently regards ecological environmental protection as
the core bottom line of its corporate sustainable development. It adheres to the Law of the People's Republic of China on Environmental Impact Climate Governance Structure
Assessment the Law of the People's Republic of China on Wildlife Protection the Regulation of the People's Republic of China on Wild Plants
Protection and the General Office of the State Council's Opinions on Further Strengthening Biodiversity Protection and other relevant laws
regulations and policies. The Company has established a core ecological environmental protection strategy featuring "ecological priority green Great River Smart actively responds to the 1.5° C temperature rise target proposed in the Paris Agreement and the Action Plan for Carbon Peaking
development compliance leadership closed-loop risk management and joint governance by all staff". It fully integrates ecological environmental Before 2030 issued by the State Council. The Company complies with IFRS Sustainability Disclosure Standard S2– Climate-related Disclosures as
governance into the Company's overall development strategy and entire production and operation process strictly complies with relevant laws well as the regulatory guidelines and compilation standards for sustainable development reports of Shenzhen Stock Exchange. Based on its ESG
and regulations on ecological environmental protection systematically builds an all-level whole-process total-element ecological environmental governance structure and internal systems the Company has integrated climate change governance.governance system strictly adheres to the ecological protection red lines strictly controls ecological environmental risks continuously improves
environmental governance capabilities and supports the Company's green low-carbon and high-quality development. The Company has established a top-down climate governance system with the Board of Directors as the highest decision-making body. The Board of
Directors is responsible for approving climate-related development strategies. The HSE and Innovation Committee under the Board is responsible for
coordinating the identification analysis and full-process management of climate risks and opportunities managing the annual budget for climate
The Company has set clear core ecological protection targets:
affairs formulating and monitoring the implementation of climate-related targets coordinating resources to advance special initiatives promoting
the linking of executive remuneration to climate change indicators and regularly reporting climate risk management and strategy implementation
Compliance Bottom-Line Target: Strictly comply with laws and regulations on ecological protection and pollution prevention progress to the Board of Directors.ensure ecological compliance throughout the entire production and operation process achieve zero ecological environment
violations and zero negative biodiversity impact incidents for the year.Level Institution Functions
Ecological Protection Action Target: Actively participate in public welfare actions for regional ecological restoration and biodiversity
protection and contribute to regional ecosystem stability and biodiversity enhancement; continuously deepen the ecological protection
awareness of all staff and fully integrate ecological protection requirements into the entire production and operation process.Decision-making Level Board of Directors Responsible for approving climate-related development strategies.In 2025 the Company strictly implemented all requirements for ecological environmental protection without any violations involving damage to
the ecological environment or impact on biodiversity throughout the year. The entire production and operation process complied with ecological
protection regulatory requirements. Coordinating the identification analysis and full-process
Case Study management of climate risks and opportunities managing the
HSE & Innovation annual budget for climate affairs formulating and monitoring the
In terms of biodiversity protection practice on June 10 2025 the Company actively responded to the call for biodiversity protection by Committee of Board of implementation of climate-related targets coordinating resources
Management Level
investing CNY 494800 to deeply participate in the Dongguan City 2025 Fishery Work Safety Publicity and Education & Marine Aquatic Directors and HSE to advance special initiatives promoting the linking of executive
Biological Resource Enhancement Release. This event was jointly organized by the Department of Agriculture and Rural Affairs of Management Office remuneration to climate change indicators and regularly reporting
Dongguan the Municipal Marine Comprehensive Law Enforcement Team and the Agricultural Forestry and Water Affairs Bureaus of climate risk management and strategy implementation progress to
riverside towns. Focusing on the theme "Biodiversity Engaging You and Me" the Company took practical measures to help maintain the Board of Directors.regional aquatic ecological balance improve aquatic community structures promote the sustainable development of marine aquatic
biological resources effectively fulfill the corporate social responsibility for ecological protection and boost harmony between humans Composed of full-time/part-time employees responsible for ESG and
and nature. Headquarters Functional climate-related work from various centers and terminal subsidiaries;
Executive Level Departments and Business responsible for advancing the company's ESG and climate work;
Departments regularly submitting ESG and climate work performance reports;
ensuring smooth communication channels with stakeholders.To strengthen safety management and emergency prevention for sudden weather events such as typhoons heavy rain fog cold waves and high
temperatures and to ensure scientific powerful orderly and effective meteorological disaster emergency response protect company storage facilities
and personnel safety and minimize casualties and property losses caused by meteorological disasters the Company has established the Great River Smart
Logistics Sudden Weather Disaster Emergency Work Guidelines in accordance with the Emergency Response Law of the People's Republic of China the
Meteorological Law of the People's Republic of China the Meteorological Disaster Prevention Regulations and related requirements.
51 52Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Emergency Leadership Group for Sudden Weather Disasters Climate-Related Risks and Opportunities
The Company has established an Emergency Leadership Group for Sudden Weather Disasters (hereinafter referred to as “Leadership Group”) with
the Company President or a person designated by the Company President serving as the commander-in-chief to provide unified leadership and Great River Smart Logistics places high importance on the impact of climate change on the Company. This year the Company has disclosed
information according to the Task Force on Climate-Related Financial Disclosure (Disclosures) initiative systematically identifying evaluating and
command for prevention and emergency response to sudden weather disasters. The HSE Department serves as the emergency office responsible for
managing climate risks faced by the company laying the foundation for further deepening climate management work in the future.comprehensive coordination of emergency response. Other departments establish emergency teams according to their responsibilities to organize Great River Smart screened and identified climate-related risks faced by the enterprise based on its business model value chain industry
emergency response work. characteristics and stakeholder communication results. It also analyzed the current and expected financial impacts of each risk and their impact
period. The time frames of the expected impact are divided into short-term (approximately 1 year) interim (approximately 5 years) and long-term
Sources Collection and Distribution of Meteorological Forecast Information (up to 2050) corresponding respectively to the Company's short-term development goals for the next year five-year interim development plan and
long-term development plan up to the middle of this century.Sources of Meteorological Forecast Information Climate-related Risks Risk Description Financial Impact Response Measures
Time
Frame Materiality
·Information released by local meteorological stations through radio television and websites; T h e i n c rea s i n g l y i m p ro v e d
·Industry and regional authorities to which the company belongs; port authority (port and shipping center) maritime bureau releasing domestic enterprise sustainability
i n f o r m a t i o n d i s c l o s u r e Increased
information via telephone and fax; ESG s y s t e m p o s e s h i g h e r E S G - costs
Reporting related information disclosure increased
The company regularly discloses environmental
·Central Meteorological Observatory typhoon website Hong Kong Observatory website. Obligations requirements for Great River non-
information as required by laws and regulations and Interim High
S m a r t Lo g i st i c s . Fa i l u re to operating develops and publishes independent ESG reports.Among the above information government authorities' information serves as the basic reference for preventive work while other information disclose relevant information in expenses
a timely manner may result in
serves as supplementary analysis reference. compliance risks.The Company continues to pay attention to dual carbon
policy work to improve energy utilization efficiency and
The Company's main business optimize energy structure promoting a comprehensive
belongs to the petrochemical green transformation of economic and social development.industry which is a key industry The Company continuously monitors dual carbon policy
under dual carbon policy control. Increased developments to improve energy efficiency and optimize Carbon Under the "dual carbon" goals costs energy structure promoting comprehensive green Reduction the company may be subject transformation of economic and social development.Requirements to stricter carbon reduction increased The Company will continue to increase investment in and Interim High
Collection and Distribution of Meteorological Information: and requirements and supervision non-operating implementation of emission reduction measures monitor Regulation potentially resulting in legal carbon market developments strengthen cooperation
·Starting from notification by the HSE Department the control room is liabilities regulatory measures expenses with governments industry associations research
and property losses due to institutions etc. to jointly explore emission reduction
responsible for tracking and recording meteorological information once Policy and non-compliance with relevant pathways and technological innovation and strengthen
Legal Risks regulations. external environment monitoring and assessment to
per hour. When government authorities initiate a Level IV response this adjust emission reduction strategies in a timely manner in
response to policy changes.must be reported to all department managers and company leaders
with additional reports each time the response level changes until the As a key pollutant discharging entity published by environmental In response to strengthened environmental regulations
warning signal is lifted. protection departments with and implementation the Company adjusts production Environmental increasingly stringent environmental Increased methods and technical equipment enhances
·The HSE Director (Manager) and Business Department Manager Standards standards the Company needs to costs understanding of regulations and establishes a sound
Interim High
Transition invest more funds and technology compliance system to ensure that the company's
(Shipping) maintain dynamic communication with government risk to meet these requirements thereby operations comply with legal requirements.increasing operating costs.authorities.The company has established a Science and Technology
Innovation Office actively conducting research and
The successive introduction development work related to environmental protection
of global carbon emission and emission reduction processes environmental
Carbon rights supporting control and Increased management monitoring systems and other green
Market adjustment mechanisms may costs technologies. The company will conduct thorough Interim High
lead to increased business market research and technology assessment before
operations and financial costs. investing in energy-saving and environmental protection Principles for Optimizing Emergency Response to Sudden Weather Disasters technology R&D to ensure investment feasibility and return
rate promoting the transition to green production and
operation modes.·The emergency response work should adhere to the principle of "better safe than sorry" preparing for the worst-case scenario and making the
most thorough preparations. Dual carbon policies require enterprises to undergo low-carbon
·Adhere to the "people-oriented" principle putting human safety first. First "evacuate when appropriate"; second do not act blindly when carrying transition necessitating cost Low investment in research development The company has established a Science
out emergency rescue work with ensuring personnel safety as a prerequisite. Carbon and deployment of energy-saving Increased and Technology Innovation Office actively Transition and environmental protection costs conducting research and development work
·Put prevention first. Risks technologies generating additional related to environmental protection and costs during the process while emission reduction processes environmental
·Keep abreast of sudden weather dynamics and early warning information in real time and pay close attention. Besides real-time communication facing risks of technology R&D and Technology management monitoring systems and other deployment failure. Long-green technologies. The company will conduct Medium
with local government departments also observe track and assess risks through platforms such as the China Meteorological Administration Risks thorough market research and technology term
If enterprises fail to identify and apply assessment before investing in energy-saving
website and the Hong Kong Observatory. energy-saving and environmental and environmental protection technology R&D
protection technologies in a timely to ensure investment feasibility and return rate
·Ensure comprehensive and ample preparation of emergency supplies such as sandbags raincoats leak plugging equipment drainage pumps and Low Carbon
Transition manner during the low-carbon Decreased
promoting the transition to green production
transition process it will lead to revenue and operation modes.instant food and form a detailed material list including specifications and quantities. Risks service levels lagging behind industry
peers in low-carbon transition
resulting in customer loss.
53 54Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Climate-related Risks Risk Description Financial Impact Response Measures
Time
Frame Materiality Carbon Emission Accounting and Management
Carbon emission control measures The Company addresses market risks brought Great River Smart Logistics systematically promotes low-carbon transformation with "professional carbon management" as its core. In 2025
Energy Price and policies in the international by rising energy costs through optimizing energy
Fluctuations community affect fossil fuel costs Increased costs structure implementing energy consumption Interim Medium by continuously carrying out the special training on Enterprise Carbon Accounting and Low-Carbon Development Practices the Company potentially leading to increased management and establishing environmental
company costs. management systems. has completed cross-terminal talent team building enabling employees to master carbon emission boundary definition monitoring system
construction and data traceability management capabilities. This ensures the completeness and accuracy of Scope 1 (direct emissions) and Scope 2
Market If customers served by the
Risks company also set carbon reduction (indirect emissions from purchased energy) accounting strengthening the foundation of carbon emission data governance.Customer targets they will prefer enterprises The Company actively participates in environmental
Preference for providing low-carbon logistics Decreased protection activities and promotes green supply chain Based on capacity building achievements and in accordance with ISO14064-1:2018 and the Greenhouse Gas Protocol (GHGP) the Company has
Low-Carbon services to help achieve their carbon goals. If the enterprise revenue construction to actively respond to market risks that may
Interim Medium
initiated a company-wide carbon inventory plan for 2025:
Services cannot provide green services arise from changing customer demands.Transition meeting customer needs it may
risk lead to customer loss.Customers investors and The Company has always aimed to create an industry Boundary Verification Stage:
other stakeholders increasingly benchmark enterprise. In addressing climate and environmental impacts faced during production and Each terminal defines organizational operational boundaries clarifies emission source attribution to Scope 1/2 and ensures
emphasize environment-related operation the Company insists on strengthening
information disclosure. When such environmental management and supervision improving accounting framework compliance;
Reputation ESG Negative disclosed information falls below Decreased energy efficiency and reducing emissions implementing
Risks Events stakeholder expectations it may revenue green supply chain management establishing Short-term High
environmental information disclosure mechanisms Data Traceability Stage: adversely affect the Company's
corporate image and reputation regularly publishing social responsibility reports Identifies key emission sources and greenhouse gas types collects original activity data such as energy consumption and electricity/heat
reducing capital market recognition establishing emergency plans and obtaining third-party certifications to maintain company reputation and purchases and matches with authoritative emission factor databases;
of the Company. enhance stakeholders' investment willingness.Quantitative Analysis Stage:
The company's headquarters The Company has established internal systems such Uses standardized tools to complete energy consumption conversion calculations generates carbon emission inventories by terminal
is located in Dongguan City as the "Guidelines for Emergency Work in Sudden
Guangdong Province and all Weather Disasters" and formed an emergency leadership and summarizes group totals constructing dynamic emission baselines;
storage terminal projects for group for sudden weather disasters to strengthen
petroleum liquid and gaseous safety management prevention and emergency
chemical products are located response for sudden weather events. This ensures Completed carbon emission datasets for 2024 and 2025 and formed the "Great River Smart Logistics Carbon Emissions Summary Table" scientific forceful orderly and effective emergency
Extreme in the southeastern coastal area Increased capital response to meteorological disasters safeguarding to support carbon performance benchmarking and emission reduction pathway optimization;
Short-term Weather Such susceptible to typhoons extreme expenditure company equipment facilities and personnel safety
Risks as Typhoons precipitation and floods. On one
Short-
Rainstorms hand this leads to damage to increased costs
and minimizing casualties and property losses caused High
by meteorological disasters. The Company adheres to term
and Floods terminals office buildings and decreased revenue the principle of "people-oriented" ensuring "evacuation Compiled the Great River Smart Logistics Carbon Emission Analysis Report to provide decision-making basis for setting scientific carbon
equipment causing asset losses; when necessary" and prioritizing personnel safety targets disclosing TCFD climate information and responding to "dual carbon" policies demonstrating environmental responsibility and
on the other hand it endangers during emergency rescue operations. The Company has developed emergency management procedures
employee safety obstructs transparent governance commitments.for extreme weather implementing hierarchical risk
transportation and affects control with the emergency leadership group taking
normal company operations and corresponding response measures according to
production. management procedures based on different risk levels.The Company shortens continuous operation time based
on work conditions; requires incoming vehicles to be water-
cooled before operation; requires vessel decks at terminal
operations to be water-sprayed for cooling before operation
The Company's headquarters and vessels unable to leave berths after stopping operations
and some storage terminals must continue water spray cooling measures; during high-Physical are located in subtropical temperature weather continuously monitors material
Risks regions. Under long-term temperature in storage tanks taking cooling measures when
climate pattern changes with necessary; strengthens temperature monitoring of special
rising average temperatures chemical material storage tanks pipelines and warehouses
p o w e r f a c i l i t i e s a n d to prevent material deterioration due to high temperatures;
Rising Increased equipment may experience monitors radar level values of storage tanks daily; strengthens
Average o p e rat i o n a l fa i l u re s a n d costs pipeline depressurization management; enhances parking
increased accident r isks decreased management of external operation vehicles arranges
Interim Medium
Temperature
a f f e c t i n g p r o d u c t i o n revenue special personnel for inspection and adopts water spraying
efficiency and creating safety measures for cooling. The Company completes occupational
hazards. Simultaneously health examinations for employees before summer and Long-term employee health is affected establishes occupational health monitoring files; organizes
Risks p r e v e n t i n g l o n g - t e r m relevant high-temperature operation safety training before
outdoor work and impacting summer to strengthen high-temperature safety operation
operational efficiency. awareness; provides protective and health products that meet requirements such as parasols towels sun hats
cooling drinks and heat stroke emergency kits; establishes
high-temperature emergency measures with immediate
necessary first aid and medical treatment for those found with
heat stroke.The Company's headquarters
and storage terminals are located Time Scope 1 Emissions (tCO2e) Scope 2 Emissions (tCO2e) Total Emissions (tCO2e)
at relatively low elevations near Increased capital
the sea making them vulnerable
Sea Level expenditure to sea level rise. Rising sea levels The Company has formulated a special flood Long-
Rise may damage terminal facilities increased costs prevention emergency plan. term Low
and warehouses affecting decreased
transportation efficiency increasing revenue
maintenance costs while reducing 2025 2209.20 20877.63 23086.83
business revenue.
55 56Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Carbon Emission Data Carbon Reduction Measures and Management
Step Main duties
Main Approach: ·Review of domestic and international standards
A n a l y s i s o f d o m e s t i c a n d Methodology Development regulatory requirements and best practices
i n t e r n a t i o n a l s t a n d a r d s ·Develop carbon disclosure principles and indicators for
regulatory requirements and this report
b e s t p ra c t i ce s co m b i n e d
w i t h c u r re n t m a n a ge m e n t
status to conduct greenhouse ·A ssessment of enterprise-owned and controlled Boundary Setting and Baseline
operations and facilities
gas inventor y ensuring the Year Establishment ·Definition of organizational and reporting boundaries
company's carbon emissions
are measurable reportable and
verifiable (MRV). ·Mapping of direct indirect and other indirect emission
Emission Source Identification sources
·Determination of key emission points
·Selection of appropriate greenhouse gas calculation tools
Calculation Methods for this project
and Emission Factors ·Identification of emission factors requiring measurement and
supporting documentation
Purpose:
·To ensure carbon emission
calculations comply with Activity Data Collection ·Prioritization of data collection activities
Methodology
external regulatory requirements ·Establishment of data collection protocols
·To ensure establish carbon
emissions that meet measurable Carbon Data System ·Presentation of carbon data system framework
Development Workshop
reportable and verifiable ·Refinement based on departmental feedback Carbon Neutrality Project
principles
On October 15 2025 Changzhou Great River a subsidiary of Great River Smart successfully
·Establishment of data collection pathways and passed the authoritative certification of China Environmental United Certification Center Co.Carbon Data System requirements Ltd. (CEC) for officially achieving its carbon neutrality target and ranked among the leaders
Finalization ·Implementation of comprehensive carbon emission in green development in the petrochemical storage field. This carbon neutrality certification
data system strictly followed international general standards throughout the process. A full-process
comprehensive and strict verification was conducted on the greenhouse gas emissions of
Changzhou Great River from June 1 to August 31 2024 which fully covered direct emissions
(Scope 1) and indirect emissions from purchased energy (Scope 2). Through rigorous emission
accounting and accurate confirmation Changzhou Great River scientifically purchased
Carbon Reduction Targets compliant carbon credit allowances to offset all related greenhouse gas emissions for the
same period and successfully passed the carbon neutrality certification. This successful
certification not only strongly confirms the Company's green transformation results but also
With green and low-carbon development as its core Great River Smart has clarified its carbon neutrality pathway: The Company controls carbon fully demonstrates Great River's firm determination to proactively put into practice ecological
emission growth through energy structure optimization energy efficiency improvement and low-carbon supply chain management with a environmental protection concepts actively fulfill social responsibilities and contribute to
preliminary plan to peak emissions before 2030 and achieve carbon neutrality by 2060 reaching net-zero emissions in operations and value chains. the achievement of the "dual carbon" goals. In the future Great River Smart will continue
In 2025 Changzhou Great River successfully obtained carbon neutrality certification and the certificate has been published on the Carbon Neutrality to deepen energy conservation and emission reduction initiatives continuously optimize
Information Platform under the Ministry of Ecology and Environment. The Company plans to complete carbon neutrality certification for 1-2 its energy structure and operational processes persistently focus on green and low-carbon
development and contribute its strength to the realization of the national "dual carbon"
enterprises in 2026 achieve carbon-free plants through renewable energy application low-carbon processes and intelligent energy management strategy.and set a benchmark for green manufacturing in the industry. In the future the Company will drive industrial low-carbon transformation through
technological innovation and management reform contributing to global climate governance and sustainable development.
57 58Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Green Office
Breather Valve Exhaust Gas Treatment and Improvement Project in Tank Farms
The Company deeply practices the green development concept by making green office as an important tool for fulfilling environmental
responsibilities and promoting low-carbon operations. During the reporting period the Company systematically advanced the construction
of a green office system continuously reduced the environmental footprint of its operational activities and supported the achievement of
Upholding a strong sense of environmental responsibility Changzhou Great River a subsidiary of Great River Smart strictly adheres to the Company's "dual carbon" goals with a focus on resource conservation energy management waste reduction and employee awareness
national laws and regulations on environmental protection. In the context of actively responding to the requirements for regional refined enhancement.governance of air environment and based on the Company's solid foundation in previous VOC treatment efforts it meticulously organized
the formulation of the Implementation Plan for the Breather Valve Exhaust Gas Treatment and Improvement Project in Tank Farms to 1. Continuously optimize the energy consumption structure of office spaces and promote
proactively advance the deep treatment of exhaust gases in tank farms and continuously enhance the environmental governance level. To and apply energy-saving LED and inductive electrical equipment;
this end the Company made a special investment of CNY 5.60 million to officially launch the breather valve exhaust gas treatment and 2. Strictly comply with the energy-saving requirement of keeping air conditioning Energy and Resource Management
improvement project in tank farms. The project mainly consists of two components: First it will systematically replace and upgrade the temperature at 26℃ in summer and below 20℃ in winter;
breather valves and pressure relief manholes of 70 internal floating roof storage tanks in tank farms to strengthen the efficiency of closed 3. Promote paperless office and prioritize digital means such as the OA system and
electronic approval processes.exhaust gas collection at the source and reduce fugitive emissions of exhaust gas; second one set of "three-stage condensation" vapor
recovery unit with a processing capacity of 500m3/h will be added at the loading platform to further enhance the terminal recovery and
treatment capacity of exhaust gas and achieve the resource utilization and harmless treatment of exhaust gas. The project registration 1. Fully implement separate management of office waste and set up separate recycling
facilities in office areas;
was completed in September 2024. It played a positive and significant role in improving regional air environment quality and promoting Waste Management and Resource Recycling 2. Advocate water conservation and strengthen inspection and maintenance of water
collaborative governance of the surrounding ecological environment. This will fully reflect Great River's responsibility and commitment as a facilities.responsible enterprise to actively participate in the construction of a "Beautiful China" and practice the green development concept.
1. Prioritize the procurement of energy-saving environmentally friendly and recyclable
Green Procurement office equipment and consumables; 2. Encourage suppliers to provide green packaging and
reduce excessive packaging.
1. Continuously carry out green office publicity and education popularize energy
conservation and environmental protection knowledge and advocate low-carbon office
Green Concept Promotion and Employee behaviors;
Participation 2. Encourage employees to start with small actions such as turning off lights when leaving
double-sided printing reducing the use of disposable cups and bringing their own cups to
meetings.
59 60Annual Sustainability Report
Great River Smart Logistics Co. Ltd.
04
Product Responsibility and
Customer Service
Product Quality and Safety 63
Customer Service 67
Data Security and Privacy Protection 71
R&D and Innovation 73
61 62Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Full Lifecycle Quality Management Process
Product Responsibility and Customer Service Centered on full lifecycle quality management Great River Smart Logistics dynamically monitors quality change trends proactively prevents quality incidents and ensures that customers’ stored goods are controlled according to standards throughout the inbound in-storage outbound and
sample stages building a strong defense line for cargo quality and operational safety. The Company has established the Great River Smart Logistics
Inventory Quality Control Standards to promote full lifecycle quality management of its stored goods.Product Quality and Safety 1.Inbound Quality Management
The inbound stage is the most intensive phase of quality monitoring. Differentiated sampling and testing processes are in place for different
Product Quality-Related Governance transportation modes such as vessels tank trucks pipelines and bulk water buckets. Quality monitoring throughout the inbound stage emphasizes
the "Three Joint Principles" (joint sampling joint sealing and joint signing).Great River Smart Logistics upholds its core values of "customer-centricity HSE as foundation contributor recognition long-term commitment
and continuous innovation." Operating in full compliance with ISO 9001 standards and relevant regulatory frameworks the company leverages its · Vessel Inbound Quality Monitoring: After berthing the measurement post together with inspection authorities and vessel crew samples the cabin
Smart Customer Service System to ensure complete traceability throughout the cargo custody chain guaranteeing service reliability and safety.The Company's quality management strategy emphasizes digital transformation and supply chain collaboration with the Strategy and Marketing while also recording the previous three cargoes carried by the vessel and tank cleaning to prevent cross-contamination.Department aligning quality objectives with corporate goals while the Process and Digitalization Center deploys IoT and big data analytics for real- · Tank Truck Inbound Quality Monitoring: Verify the tank number and product name before operation. Release material from the tank truck's discharge
time storage monitoring and risk alert optimization. outlet to test for water and quality. Do not sample until confirming there is no free water or impurities.The Terminal Tank Operation Center focuses on internal refined management. By improving the internal control management system it implements · P ipeline Inbound Monitoring: For the first feed via pipeline samples must be taken together with inspection authorities from the external pipeline
strict control and precise optimization of material losses and enhances customer satisfaction through refined high-quality management and sampling port and the storage tank with a volume ≥ 1L. Operations can only proceed after passing laboratory testing.effectively safeguards core customer interests. At the same time it establishes a comprehensive management process for all categories of goods · B ulk Water/Original Drum Monitoring: Bulk water tank trucks must pass sample testing; original drums must undergo packaging appearance inspection
fully standardizes all aspects including sampling standards sampling methods sample management and emergency response and ensures the before being sent inbound with the drum quality disclaimed in writing by the cargo owner.quality and safety of stored goods from source to end.Product Quality Management Risks and Opportunities
2.In-Storage Quality Management
Quality monitoring during the in-storage phase aims to "promptly detect quality change trends and prevent quality incidents." Dynamic control
of cargo quality within storage tanks is achieved through routine testing at regular frequency increased testing for sensitive goods and data trend
Main Risks Faced by Product Quality Management analysis.
01.Operational Compliance Risk · Routine Quality Monitoring: Sample and analyze the cargo in the tank once a month. Testing items are executed according to contract
Failure to meet product quality standards would violate the quality management system and relevant laws and regulations requirements product quality standards and agreements with the customer.potentially leading to cargo ownership disputes and customer claims which affects the Company's compliant operations and · I ncreased Monitoring: For quality-sensitive goods such as methanol ethylene glycol and aniline or for stored goods whose quality is
market reputation. at a critical point (close to the lower or upper limit specified in the contract) the sampling and analysis frequency may be increased as
02.Customer Trust and Market Risk appropriate adjusted to once a week or once every two weeks with a focus on tracking change trends.
Inadequate control of material losses and insufficient assurance of cargo quality safety directly reduce customer satisfaction · Tank Transfer Quality Monitoring: Before transferring a sample must be taken from the source tank and sealed. If the destination tank is
leading to the loss of core customers and shrinking of market share. Negative public opinion arising from quality issues would not empty samples must be taken from both tanks before the transfer. After the transfer is complete a mixed sample is taken from the
severely damage the brand image and weaken the Company's competitiveness within the industry. destination tank.
3.Outbound Quality Management
Opportunities in Product Quality Management
Quality monitoring during the outbound stage ensures that the quality of the dispatched product is consistent with the quality of the cargo inside the
storage tank and it is imperative to prevent quality disputes caused by stratification pipeline contamination or improper operation.
01.Compliance and Brand Value Enhancement Opportunity Pre-dispatch Quality Confirmation: For both vessel and truck loading samples must be taken by the measurement post together with inspection
authorities and the cargo owner. Dispatch can only proceed after passing laboratory testing.By strictly following the ISO 9001 standard and achieving full-process traceability of cargo ownership through the smart Dispatch In-Process Quality Monitoring: 6-10 minutes after the start of vessel dispatching a pipeline sample at the vessel's inlet must be taken together
customer service system the Company can create a compliance benchmark gain recognition from both regulators and the with the vessel crew and signed and sealed by the crew. The focus should be monitoring the quality of the product leaving the pipeline; the pipeline
market and enhance brand credibility. can only be used after passing testing.
02.Customer Value and Market Expansion Opportunity
Refined internal control management low loss rates and high-quality assurance can significantly increase customer stickiness
and positive word-of-mouth and contribute to expansion into new business and new markets. A customer-centric quality 4.Sample Traceability Quality Management
service model can build long-term and stable customer relationships thereby laying the foundation for the Company's
sustained profitability. Sampling management covers the entire chain from sample sealing to sample destruction ensuring samples are intact traceable and not
tampered with. Samples are sealed immediately after collection. Labels must be fully and accurately filled out to ensure that information
cannot be swapped. Unsealing a sample requires confirmation from relevant departments of the Company. Expired samples are treated as
hazardous waste after customer consent with different types collected separately.
63 64Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Quality Culture Construction Handling of Non-Conforming Products and Quality Safety Incidents
Guided by its "customer-centric" core value the Company systematically advances the promotion and construction of a quality culture continuously To standardize the full-process quality control for the inventory and effectively prevent and handle abnormal goods quality the Company has
strengthens the quality awareness of all employees and consolidates the foundation of quality management. formulated the Great River Smart Logistics Inventory Quality Control Standards.It regularly organizes quality management (internal control management) themed training covering all positions from management to Product Quality Management Indicators and Targets
front-line operators.：
For core positions such as storage operations sampling and testing specialized training on the ISO 9001 system standards goods sampling Considering both the Company's strategy and customer needs clear staged quality management targets are set:
specifications sample management processes and quality risk identification is conducted to comprehensively improve professional operational
capabilities. At the same time review and teaching of typical quality dispute cases are conducted to strengthen employees' ability to predict and 01.Loss Control Target：
handle quality risks through scenario-based analysis.To control the annual material loss rate within the satisfaction threshold agreed with customers continuously optimize storage operation
processes and reduce abnormal losses.
02.Safety Assurance Target：
To achieve zero quality incidents for the year and comprehensively prevent risks such as abnormal goods quality and safety hazards.
03.Service Efficiency Target：
To achieve a 100% timely resolution rate for quality disputes with customer complaint response time not exceeding the specified limit
thereby enhancing customer trust.Great River Smarter Logistics conducted quality management (internal control management) themed training
Great River Smarter Logistics conducted review and teaching of emergency management and accident case analysis
65 66Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Customer Service Customer Service Process
Customer Service Governance Marketing and Service Collaboration
Commercial Center is responsible for overall marketing planning the Integrated Management Team supervises sales progress the Risk Control
The Company has built a comprehensive customer service system including the Market Development and Customer Service Management Team reviews marketing content for compliance and the Sales Team implements specific marketing plans. The departments form a collaborative
Procedures the Customer Relationship Management Regulations the Customer Satisfaction Survey and Evaluation Management System the mechanism to ensure truthful marketing information and match between service and demand.Customer Service First-Contact Responsibility System the Customer Complaint Handling System the Front-line Position Service Management
Regulations and the Chemical Warehouse Key Account Management Regulations to provide institutional guarantees for standardized customer
service.Service Process
Management Structure
Pre-service Communication
01
Customer service staff maintain ongoing communication with clients providing detailed information about warehouse
entry/exit procedures and highlighting important considerations.Establish a customer service specialist position in the Business Center to be responsible for supervision and overall
coordination of customer service work;
In-process Communication
02
Clients submit warehouse orders to customer service representatives who enter this information into the system
Customer service personnel at each subsidiary are responsible for implementing daily customer management collecting converting it into internal execution orders that trigger operational instructions. Throughout this process customer
customer opinions and suggestions answering questions and coordinating across departments to solve problems; service representatives maintain continuous communication with clients promptly addressing questions and concerns.Collaborative Service
03
Employees from customer service billing operations HSE and other positions collaborate to provide full-process terminal loading
and unloading operations for the cargo receivers/deliverers; in 2025 a dedicated online filing service position was added to be
Sales personnel at each subsidiary assist the customer service personnel in answering customer questions and handling
responsible for providing operation guidance on the online filing system information verification and answers to questions.internal and external coordination and are responsible for daily customer maintenance;
First-contact Responsibility
04
Great River Smart implements a "first-contact responsibility system" across all service positions. This approach ensures
The head of the Business Department at each subsidiary is responsible for maintaining key accounts and answering/ that the first staff member contacted about an issue takes ownership of its resolution eliminating responsibility
handling complex issues; transfers that could delay service and impact customer satisfaction.Customer Feedback Systems
05
Customer opinions and suggestions are collected on an ongoing basis through multiple channels and at multiple levels. Not
Relevant departments are responsible for the rapid handling of customer service issues occurring within their respective
only do salespersons proactively collect feedback through phone communication and customer visits but customer service
work scopes and the collaborative handling of related customer service incidents.staff operations personnel and other positions also participate simultaneously and continuously to gather input. Combined
with regular customer satisfaction surveys this approach enables a comprehensive understanding of customer satisfaction
and improvement needs driving continuous optimization of services and management.
67 68Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Customer Complaint Chemical Warehouse Segment Satisfaction Survey Results
Timeliness Accuracy of Packaging Clarity and Communication Ability to Daily Reports
Storage Overall of Loading/ Loading/ Safety and Completeness Ability and
Timeliness and
Complaint Handling Channel Attitude of Handle and Reasonableness Facility Average Unloading Unloading Appearance of Packaging Service Abnormal Reconciliation of Complaint
All Great River Smart subsidiaries have implemented "Customer Service Communication Groups" designed for swift Operations Operations Integrity Labels Personnel Issues Services Handling
complaint resolution. Customer service specialists track both complaint details and resolution progress. Changshu
Great Smart 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Dongguan
Complaint Follow-up and Handling Evergrowing 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Terminal
Follow-up by Designated Personnel: Customer service specialists are responsible for recording and following up on customer
complaints and tracking handling progress throughout the process. Zhongshan
Regular Summary: Customer service specialists compile and summarize customer complaints and their handling status on a weekly GR Terminal 99.55 100.00 100.00 99.20 99.20 100.00 99.60 99.20 99.20
basis and report them during the Company's business meetings.Closed-Loop Management: For customer complaints that cannot be resolved immediately a special supervision mechanism is Cangzhou Great
established with continuous follow-up until the issue is completely resolved and forms a closed loop. River 99.10 98.80 99.20 99.20 98.80 99.20 99.60 99.60 98.40
Warehousing
& Logistics
Complaint Prevention and Improvement Chengdu
Great Smart 98.68 98.24 98.82 97.65 99.41 99.41 98.82 98.82 98.24
Combine customer complaint handling results with customer satisfaction surveys and daily customer feedback extract Warehousing
service pain points and optimize service processes and standards in a targeted manner to reduce the occurrence of
Nantong
complaints at the source. Hongzhi 98.39 98.57 98.57 97.14 98.57 98.57 98.57 98.57 98.57
Logistics
Changzhou
Customer Satisfaction Survey Great Smart 98.21 99.29 99.29 98.57 98.57 98.57 96.43 98.57 96.43
Overall
The overall satisfaction score for 2025 was 98.91 a slight increase from 97.15 in 2024. The satisfaction survey results for each segment and Average 99.13 99.27 99.41 98.82 99.22 99.39 99.00 99.25 98.69
storage facility are as follows:
Terminal Storage Tank Segment Satisfaction Survey Results
Responsible Marketing
Staff Service Complaint
Storage Facility Overall Average Berthing & Storage & Dispatch & Overall Unloading Safekeeping Service Attitude and Feedback Complaint Handling Evaluation Great River Smart consistently upholds the business philosophy and mission of "customer-centric providing quality service to customers" deeply
integrating responsible marketing into our corporate development strategy and daily operations. We deeply understand that responsible marketing
Nantong Base 98.46 97.83 99.14 98.62 98.93 99.26 98.04 is not only a cornerstone of corporate social responsibility but also the core driver to achieve sustainable development.Zhongshan GR
Terminal 98.18 99.09 95.93 98.55 100.00 98.89 97.22 Management Structure and Coordination Mechanism
Fujian Gangfeng
Energy 99.19 99.23 98.46 99.33 99.23 100.00 98.85 The Company has built a management structure with clear responsibilities and efficient coordination. The Commercial Center is responsible for
Taicang Power Shell overall marketing planning the Integrated Management Team supervises sales progress the Risk Control Team reviews marketing content for
Petrochemical 99.04 98.97 99.00 99.00 99.55 99.08 99.10 compliance and the Sales Team implements specific marketing plans. The departments form a closed-loop collaborative mechanism to ensure
marketing information is truthful accurate and free from misleading content from source to end.Changzhou GR
Terminal 99.32 99.75 99.13 99.15 99.05 99.76 99.29
Information Disclosure and Authenticity Assurance
Nanjing GR
Terminal 98.32 99.05 96.25 98.59 100.00 100.00 98.75
Great River Smart Logistics consistently adheres to open and transparent market communication principles. The official website brochures and
Changshu 98.77 98.82 98.64 98.68 99.29 99.25 98.93 exhibition materials truthfully present terminal storage tank operational capabilities service scope and fee standards. It proactively discloses Terminal Base company operational conditions and service upgrade information through official website social media regular customer communication meetings
and other channels helping customers make informed decisions with full knowledge.Lishadao Base 97.84 97.69 97.65 97.88 99.26 97.94 97.50
Rizhao Great River 99.44 99.50 99.33 99.44 99.50 99.50 99.50 Customer Rights and Two-Way Communication
To protect customer interests the Company has established a comprehensive customer management system accurately recording needs and
Overall Average 98.73 98.88 98.17 98.80 99.42 99.30 98.58 communication history to ensure marketing information precisely matches customer needs. Through regular customer satisfaction surveys and
continuous optimization of promotional materials and marketing strategies positive interaction and shared growth with customers is achieved.
69 70Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Data Security and Privacy Protection Data Security and Privacy Protection Measures
Great River Smart Logistics deeply understands the importance of data assets and consistently places data security and privacy protection at the
Data Security System core of its operations. We have built a defense-in-depth system covering the entire company and business partners and ensured the confidentiality
integrity and availability of information assets through system specifications technical means and independent audits.The Company maintains a comprehensive information security management system built around ISO compliant frameworks including the
OA System Management Protocol and the SAP System Usage Management System. Led by the Process and Digitalization Center this security 1. Data Security Management System and Technical Measures
architecture ensures coordinated and supervised information security activities throughout the organization. To mitigate potential system failures
and safeguard information assets the company has implemented the IT Security Management Protocols that establish clear requirements for data The Company's Process and Digitalization Center coordinates data security management with a protection system covering the entire data lifecycle.backup procedures emergency power maintenance data protection measures and network security controls. The Company has formulated internal policies such as the Computer and Network Management Regulations to improve data security management
policies. It prevents unauthorized access through login authentication screen locking data encryption and logical isolation. Uploading sensitive
data to external AI tools is strictly prohibited. Desensitization specifications are formulated to ensure data sharing security. At the same time the
Company regularly conducts internal reviews and risk assessments of its information systems.
2. Data Security Incident Emergency Response Mechanism
The Company follows the principle of "putting prevention first and combining prevention with regulation" in building a full-process data security
incident emergency response mechanism covering pre-incident prevention in-incident handling and post-incident improvement. In daily
management the Process and Digitalization Center is responsible for real-time network monitoring and risk early warning ensuring early detection
and intervention of anomalies. When data anomalies occur the Process and Digitalization Center responds rapidly according to preset procedures:
immediately implement network isolation to cut off the path of risk spread; simultaneously conduct log traceability to pinpoint the source of the
anomaly; then perform system recovery to restore normal business operations.
3. Critical System Backup and Reliability Assurance
With business continuity as its cornerstone the Company has built a rigorous backup and disaster recovery system. It performs automated backup
tasks for the core production system (SAP) file servers and mail servers achieving full coverage of critical data. All backup data is stored in
dedicated fireproof moisture-proof and anti-magnetic locations. The SAP system is configured with the remote disaster recovery functionality to
ensure seamless business switching in case of single server or storage failure. The Process and Digitalization Center monitors the backup success
rate on a monthly basis with a target value of 100%. This ensures data can be effectively restored when needed providing solid support for the
Company's stable operations.Data Security and Privacy Protection Targets
Customer Privacy Protection System
·Data Security Coverage Target
To achieve full backup coverage of the core production system (SAP) file servers and mail servers with a 100% backup success rate for core
The Company attaches great importance to customer privacy protection making it an integral part of compliance management and data governance.It strictly complies with the Personal Information Protection Law of the People's Republic of China and relevant laws and regulations. The Company systems.has formulated the IT Security Management Protocols and established a sound customer privacy protection system covering the entire lifecycle of
data collection transmission storage use and destruction effectively safeguarding the legitimate rights and interests of customers. Concurrently ·Privacy Protection Compliance Target
the Company provides information security and privacy protection training for new employees to prevent the leakage of important information. To strictly comply with the Personal Information Protection Law of the People's Republic of China and related regulatory requirements and
During the reporting period the Company had zero vicious incidents of leaking customer privacy or data. The Company's information security ensure the entire process of customer personal information collection use and storage is legal and compliant.management system operated smoothly with no regulatory inquiries legal proceedings or public complaints regarding customer privacy leaks.
71 72Annual Sustainability Report
Great River Smart Logistics Co. Ltd.R&D and Innovation Industry-University-Research Collaboration
The Company places great importance on industry-university-research collaborative innovation considering it a key strategic measure for improving
Innovation-Driven Development Strategy the technological innovation governance system and enhancing independent innovation capability. During the reporting period focusing on key technology R&D and industrial application needs the Company continuously deepened its collaboration mechanism with external research
institutions to promote the effective connection of cutting-edge research results with the Company's business scenarios. A multi-level multi-
The Company adheres to technological innovation digital innovation and management innovation as its core engines deeply integrating innovation dimensional industry-university-research cooperation ecosystem has taken shape.into its sustainable development strategy to empower high-quality development that is green and low-carbon safe and efficient compliant and
transparent. Subsidiary Partner Institution Cooperation Content Cooperation Progress
Hazardous Chemical Warehouse
Changshu Great Smart Changzhou Vocational Institute of Temperature and Humidity Under normal cooperation
·Digital Technology Innovation Mechatronic Technology Online Monitoring Development Project
An integrated platform for smart warehousing smart transportation and smart customer service is built to improve operational efficiency
and reduce resource consumption and carbon emissions through full-process digitalization and intelligence. Academy of Environmental Capital Application and Service Dongguan Evergrowing Terminal Planning and Design Co. Ltd. for Organic Liquid Storage Tank Under normal cooperation
Nanjing University Upgrading Project
In terms of cooperation mechanisms and platform development the Company has established long-term stable strategic cooperative relationships
with renowned universities such as Nanjing University and Changzhou Vocational Institute of Mechatronic Technology or their affiliated research
·Green Technology Innovation institutes. By jointly building platforms such as "University Student Employment and Entrepreneurship Internship Bases" and "University-Enterprise
Deepen the application of technologies such as high-precision measurement intelligent loading and dynamic scheduling to optimize Partner Units" it has formed a comprehensive cooperation pattern covering technology R&D talent cultivation and achievement commercialization.resource allocation reduce material losses and energy waste and support the achievement of dual carbon goals. In the future the Company will continue to deepen industry-university-research collaborative innovation focus on common technical challenges
in the industry expand the breadth and depth of cooperation promote the transformation of more scientific and technological achievements
into practical productivity lead the Company's high-quality development through innovation-driven development growth and contribute greater
strength to the technological progress and sustainable development of the industry.·Safety Governance Innovation R&D Achievements
Establish an intelligent early warning full-process traceability and closed-loop management system strengthen risk prevention and
control and emergency response capabilities and ensure safety production and compliant operations. Changshu Great Smart’s Hazardous Chemical Warehouse Online Monitoring System
·M ulti-dimensional Perception and Intelligent Early Warning: Build an intelligent early warning system with adjustable thresholds and graded
alarms that integrates temperature humidity toxic and flammable gas and flame detection to enhance the safety factor of hazardous
chemical storage.·Mechanism and Ecosystem Innovation
Improve innovation incentives and talent development mechanisms promote industry-university-research collaboration and joint industry · Closed-loop Linkage and Automatic Disposal: Achieve linkage between alarms and emergency equipment such as exhaust fans sprinklers
standard development empower ESG governance with technology and build core competitiveness for sustainable development. and static elimination forming a closed-loop of "monitoring-early warning-disposal" to effectively control accident risks.·S ystem Compatibility and Remote Control: The data acquisition module is compatible with existing SCADA systems supporting remote
monitoring and action control which reduces manual dependence and enhances the information management level.R&D Management System
Dongguan Evergrowing Terminal’s Storage Terminal Fire Protection System and Remote-Control System
The Company consistently regards R&D and innovation as the core driving force for sustainable growth. Centered on its development strategy
and market demands it has built a systematic well-functioning and efficient R&D management system. Guided by innovation value this system · Fast Opening/Closing and Emergency Efficiency Improvement: The innovative design of gas-electric controlled fire valves features
ensures efficient and orderly R&D activities and continuously enhances the technological innovation capability and the level of achievement electromagnetic and permanent magnet coordination to achieve millisecond-level valve opening which significantly improves the fire
commercialization through sound organizational structures improved institutional processes strengthened resource allocation and risk response speed compared to traditional pneumatic methods.management. To accelerate the development promotion and application of new technologies standardize R&D project management processes
improve project management efficiency and promote the standardization effectiveness and scientific rigor of R&D project management the
· System Compatibility and Remote Control: The independently developed remote control system is seamlessly compatible with the existing
Company has formulated the Research and Development Organization Management System covering R&D project initiation process management
central control platform requiring no new control room and achieving precise remote control from a distance of 500 meters.achievement acceptance intellectual property protection achievement commercialization and post-project evaluation.The Company has established an R&D organization system where the HSE and Innovation Committee provides overall planning the Technology R&D
Project Management Committee conducts research and review and research offices composed of technical personnel from various subsidiaries are · Safety Compliance and Cost Optimization: Replace old and faulty equipment meet mandatory requirements of fire protection regulations
responsible for specific R&D projects. improve equipment integrity rate and emergency support capability and reduce maintenance costs.
73 74Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Digitalization and Intelligence Terminal Storage Tank Operation Management System Officially Launched
·F ull-Process Digital Management: Replace traditional models with paperless operations and automated processes to reduce paper consumption
Optimization and Upgrade of SAP System Functions and offline communication significantly improve business flow efficiency and achieve dual optimization of resource utilization and operational
efficiency.· Chemical Warehouse Settlement Capability Upgrade: Reconstruct core logic adopt a flexible settlement model with a three-level architecture
improve cost processing and rule validation simplify operation processes and enhance settlement efficiency accuracy and cost control levels. · High-Precision Measurement Calculation: Reduce material measurement errors energy waste and carbon emissions while ensuring data
accuracy through millimeter-level precision algorithms and multi-scheme adaptation laying the foundation for resource optimization and
· Full-chain Automation of Electronic Invoices: Achieve deep integration between SAP and the invoice platform to enable full-process automated compliance management.processing while reducing operational risks and improving compliance and customer service experience.·I ntelligent Validation Rules: Provide built-in multi-dimensional data and business validation mechanisms to offer real-time early warnings
· Document and Interface Coordination Optimization: Supplement online management of documents optimize cross-system interfaces achieve of abnormal risks strengthen operational standardization and safety production control and effectively reduce operational errors and
efficient data synchronization and business closed-loop and reduce offline risks. environmental accident risks.·I nformation Security and Internal Control Strengthening: Enhance data encryption and log traceability improve permission control and use
rule-based processes and early warnings to improve internal control providing data support for ESG disclosure. ·D ata Traceability System: Completely record full business process data support multi-dimensional traceability queries achieve management
transparency and data-driven decision-making improve governance compliance and risk prevention capabilities and support ESG
implementation.Improvement and Enhancement of Smart Customer Service Platform
· Capability Enhancement at Mobile Terminal: Expand functions such as bill query shipment import and loading arm progress query upgrade
OCR recognition optimize account security policies and improve self-service and operational efficiency. Transportation Management System Officially Launched
· WEB End Process Automation: Implement functions such as automatic generation of appointment orders and multiple orders per vehicle · Digital Intelligence Concept: Centering on ESG as the core guideline adhere to the concept of "using regulation as the foundation system as the
optimize the closed-loop management of park entry declarations adapt to business rules and improve operational efficiency. tool and data as the evidence" and promote green safe compliant and efficient development of logistics business.· Billing-Reconciliation-Invoicing Closed-loop: Support online payment collection and automatic reconciliation and integrate with the Golden ·D igital and Intelligence System: Build an integrated architecture of "unified authentication + fine-grained permissions + full-process traceability
Tax System and the invoice system to achieve integration of business finance and tax and enhance settlement compliance and traceability. + compliance assurance" and form a digital support system covering governance environment and society.· Interface Integration and Ecosystem Expansion: Integrate services such as electronic signatures and SMS notifications connect with key account · Core System Application: The Transportation Management System achieves full-process online order capacity and dispatch management and
systems open up the entire business data link and strengthen the collaborative ecosystem. strengthen ESG control through intelligent load planning risk validation and data traceability.·D ata Security and Governance: Improve permissions encryption and log traceability unify data standards and support internal control
· Application Results: Transportation efficiency and resource utilization are improved and carbon emissions are reduced; a strong safety and
management and ESG information disclosure.compliance defense line is built; employees and customers are empowered; high-quality data assets are accumulated and the foundation for
ESG disclosure and continuous optimization is laid.Smart Customer Service and AI Capability Development
·I ntroduction of Large Model Capabilities: Apply large models to inquiry Q&A knowledge retrieval and content generation. Integrate with the
business knowledge base to improve customer service response speed and first-time resolution rate while reducing manual workload and Technology Ethics
training costs.According to the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial
· Intelligent Recognition and Automatic Entry: Deepen the application of OCR and structured extraction to achieve automatic recognition Implementation) the disclosure target for the "Technology Ethics" topic is specific entities. The Company is not currently involved and therefore
validation and completion of customer information and document data reduce entry errors and improve data quality and processing may not disclose related content.efficiency.·G reen and Efficiency Benefits: Reduce paper documents and offline communication shorten business cycles lower operating costs and
resource consumption and support green office and digital transformation through online automated and intelligent transformation.
75 76Annual Sustainability Report
Great River Smart Logistics Co. Ltd.
05
Employee Recruitment and
Talent Development
Employee Recruitment 79
Employee Benefits and Care 79
Employee Training and Development 82
Democratic Management and Communication 85
Occupational Health and Safety Production 86
77 78Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Employee Recruitment Employee Benefits and Care
The Company strictly adheres to the Labor Law Labor Contract Law and other relevant regulations to safeguard employees' legitimate rights.Recruitment Management System Beyond statutory benefits the company has developed a comprehensive benefits system based on overall employee needs. In 2025 we continued
to deepen the HSE culture centered on "employee care" and the "family-care culture" extending the concepts of health safety and environment to
The Company strictly adheres to the Labor Law of the People's Republic of China (hereinafter referred to as "Labor Law") the Labor Contract Law of the deep care for every employee and their families. We are committed to creating a safe inclusive supportive and vibrant work environment where
the People's Republic of China (hereinafter referred to as "Labor Contract Law") and other relevant laws and regulations as well as the Company's
employees feel the warmth and support from the collective and realize both personal and corporate growth while creating value for the Company.Recruitment Management Policy:
In accordance with regulations the Company verifies identity information and relevant documentation during the recruitment process to ensure
all hired employees are at least 18 years of age. Labor contracts are signed on the first day of employment ensuring full compliance with legal
employment requirements.Deepen Family-Care Culture and Build a Multi-dimensional Care System
Recruitment Process and Measures
The Company adheres to the principles of "openness equality competition and merit" in its recruitment process. Decisions are made irrespective
of gender ethnicity religious beliefs or referral source with a zero-tolerance policy toward discrimination in any form.The Company’s comprehensive talent acquisition strategy encompasses campus recruitment and social recruitment as well as internal promotions Colleagues in Need
and talent redeployment expanding our talent pool and continuously optimizing our talent structure. For campus recruitment the Company has
established long-term partnerships with multiple domestic universities. It enhances its employer brand through career planning lectures. Our "Employee Mutual Aid Fund" is a project that embodies the spirit of mutual assistance and fraternity at Great River. In 2025 this project
social recruitment efforts utilize multiple channels including recruitment websites job fairs high-end recruitment hunting and employee referrals provided timely financial assistance for 6 employees and their immediate family members (including parents spouses and children) facing
focusing on core personnel with experience in chemical storage. Meanwhile internal promotion is strongly encouraged with eligible employees able difficulties with a total assistance amount of CNY 88000 effectively helping them through hardships. At the same time the Company
to apply for positions across departments and obtain career advancement opportunities through open competitions. The Company also promotes purchased mutual insurance for 1545 employees registered with the labor union with an annual premium expenditure of CNY 146545.04.internal job rotation based on business development needs providing diverse career path options and enhancing organizational efficiency. For The "Employee Mutual Aid Fund" project managed by the labor union and supervised by employees ensures that every donation is used
departing employees department heads and HR representatives conduct deep exit interviews to gain thorough insights into their concerns and
where it is most needed and truly practices the altruistic spirit of "one for all all for one."
reasons for leaving. This approach not only offers an opportunity to retain core talent whenever possible but also continuously optimizes systems
and processes based on feedback on management issues and career development pain points thereby enhancing organizational effectiveness.Recruitment Indicators and Targets
The Company aims to recruit and deploy strategic talents aligned with its strategy.The target number of key talents to The coverage target of the core management
be recruited was succession plan was
23 people 100%
Employee Benefits and Care
Employee Compensation System
Basic Health Protection
The Company previously adopted a "market-aligned" compensation strategy combined with a multi-level multi-dimensional compensation
and benefits system and has established performance assessment and payroll accounting systems. The current compensation strategy focuses The Company organizes annual health checkups for all employees incorporating employee health management into its regular care system.primarily on external competitiveness. The Company's salary adjustment principle combines overall and individual adjustments with relatively Comprehensive physical examinations help employees understand their health status in a timely manner and enables early prevention early
fixed adjustment cycles and methods. However as it continues to develop and the external environment changes the Company deeply realizes that detection and early treatment of diseases safeguarding employee health.a scientific and reasonable compensation incentive mechanism is the core cornerstone for stimulating organizational vitality protecting employee
rights and achieving sustainable development. The Company fully benchmarked against Huawei by introducing the "gain-and-share" concept from
2024 and deeply advanced the compensation and performance system reform in 2025 with the commitment to creating a value community where
"Might from a Small Hole Benefits from One Source" to achieve synchronized resonance between the Company’s development and employee
growth.
79 80Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Care for Female Employees and Empower "Her" Employee Training and Development
Female employees are an indispensable and vital force in the Company's development. In 2025 through a combination of regular activities and
themed planning for important holidays the Company cares for female employees from multiple dimensions such as physical health psychological
care and a sense of life ceremony letting their unique charm blossom in the workplace and life. Training and Development Management System
1.H oliday Themed Care:Every year on International Women's Day (March 8th) the Company meticulously plans a series of themed To ensure the sustainable operation and standardized delivery of training initiatives and improve the training system construction GR Management
activities. In 2025 with the theme "AI Era Love Yourself" Great River presented exquisite gifts and warm breakfasts to female employees Academy has developed targeted frameworks across multiple dimensions. These include daily training administration internal faculty development
and organized online lucky draws to allow all female employees to share the festive surprise. Additionally the Company arranged an and support for employee-driven educational advancement and skills enhancement. Together these systems solidify the foundation for fostering a
exclusive movie-watching activity that female employees and their families were invited to enjoy warm and happy family time at the robust learning organization.cinema. During Mother's Day the Company planned an activity themed "All Wishes Come True Gather Love into a River" aiming to
express love and gratitude to mothers through simple yet sincere handicrafts. Applicants for Education & Skill Total Education & Skill EnhancementEnhancement Subsidies in 2025 Subsidies Distributed in 2025
20people 48200 CNY
Special-grade Skill Certification/ Advanced Skill Certification/
SeniorProfessional Title AssociateSenior Professional Title
723
Intermediate Skill Certification/ Entry-level Skill Certification/
Intermediate Professional Title JuniorProfessional Title
234177
2.F emale Health Protection: The Company attaches continuous importance to the physical health of female employees by regularly Instructor Team Building：
carrying out special health care activities. In 2025 experts from the Provincial Workers' Hospital were specially invited to hold lectures Activate internal training resources and establish instructor certification empowerment and incentive mechanisms. A professional hierarchical
on the prevention of "two cancers" (breast cancer and cervical cancer) and provided professional health management advice. In instructor team has been formed providing core support for the efficient operation of the training system.collaboration with party-building co-construction units oral health check services were provided and guides female employees to better
care for themselves starting from physical health details. Special Invited No. of Gold Medal No. of Senior No. of Intermediate No. of Junior
Instructors Instructors Instructors Instructors Instructors
424292
Knowledge Consolidation：
The Company places high importance on knowledge consolidation and company-wide innovation. GR Management Academy organized the 2025
"Great River Wisdom Gathering" an initiative to review inheritance and practice of construction methods. This review covered multiple business
areas such as digitalization and tool application equipment and storage tank management operational processes and technology safety and
compliance firefighting and emergency equipment and operations and management. All types of construction methods closely centered
around the Company’s core objectives such as management upgrading cost reduction and efficiency improvement and risk control effectively
consolidated frontline best experience fully stimulated company-wide innovation vitality and provided solid practical support for the Company's
3. Female Mental Care: In order to address the multiple pressures faced by women in the workplace and family the Company regularly operational efficiency improvement and sustainable development.
organizes themed activities on female mental health and invites health consultants to conduct special sessions on stress management
emotional regulation and self-growth. This builds a platform for female employees to confide and communicate and helps them
maintain a good mental state and achieve a balance between work and life.Smart methods Excellent methods Valid methods Submitted methods
2897
Enrich Sports & Cultural Life and Build Team Cohesion
To enhance employees’ physique and enrich their after-work cultural life the Company Innovative Thinking：
actively organized employees to participate in several sports events in 2025 including The Company actively fosters a learning organization. GR Management Academy has planned and implemented a book-sharing program for
basketball games and badminton matches. On the field employees sweated freely middle and senior management. Aligned with the company's actual operations this initiative has identified key action plans focusing on business
and showed the spiritual outlook of Great River people's striving for progress unity intelligence management transformation customer relationship management HR three-pillar construction business process optimization and
and cooperation. These activities not only strengthened their bodies but also greatly project management advancement.enhanced cross-departmental communication and friendship while creating a positive
and vibrant team atmosphere.Looking to the future Great River will continue to uphold its original intention of Key Action Items for Implemented Number of Senior Number of Middle and Senior Supervision Projects Executive Participants Management Participants
"employee care" continuously improve the employee care system strive to create a
healthier safer fairer and more caring work and living environment for all employees and 23 18 55 284
jointly promote the harmonious stable and sustainable development of the enterprise.
81 82Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Employee Training Performance Assessment and Promotion
To build a learning organization and empower sustainable development the Company partnered with China Europe International Business School
- CEIBSONLINE.com to establish GR Management Academy. Guided by the mission of "building core capabilities for sustained and stable growth HR Three-Pillar Construction
pursuing innovation for long-term employee progress" and the motto of "Self-cultivation Moral Character Professional Excellence Innovation" it
has built a strategic talent development system. In 2025 GR Management Academy adopted an innovative training model introducing the HR three- To deepen human resources reform and innovation and enhance management efficiency and strategic execution the Company fully promoted the
pillar management model consisting of COE (Center of Expertise) HRBP (Human Resource Business Partner) and SSC (Shared Service Center). HR three-pillar construction and built an HR management model deeply integrated with the business in 2025. By the end of the year it had entered
It completed the iterative upgrade of the "eEnterprise Learning" online platform to achieve integration between training modules and human the trial operation phase.resources data. It used digital tools to support full-process control of talent development and completed the integrated operation of training plan
formulation process tracking effect evaluation and resource management.
2025 Training Overview
Project Consulting & Construction Cost Unit Personnel Coverage
Number of Trainees Male Female Middle Management Number of Female CNY 651310 100%
Middle Management
1747141233516748
Qualification System Development
In 2025 the Company promoted the standardization of the qualification system. Through systematic qualification and management the Company
Offline Training further standardized position-specific talent access and promotion standards built clear talent career development paths promoted precise
matching between talent cultivation and position requirements and consolidated the foundation for the Company's long-term talent team building.Total Offline Training Hours Average Offline Training Hours Training Hours and Investment
51379.32 hours 29.48 hours CNY 2116000
Coverage Rate of Pilot Certification in First Round Number of Participants in Pilot
Certification in First Round
Training Hours - Male Training Hours - Female 66% 1149
41526.96 hours 9852.36 hours
Training Development Risk and Opportunity Management
"eEnterprise Learning" Online Platform In 2025 GR Management Academy focused on comprehensively improving core management capabilities practical business skills and professional
competence for positions. It built a layered and classified talent cultivation system and took multiple measures to solidify the talent foundation
thereby supporting the Company's refined operations and high-quality sustainable development.Number of Courses Completed Total Learning Hours In terms of improving the project management capabilities of core management personnel the Academy launched a special program for senior
management to obtain the Project Management Professional (PMP) certification in a full attempt to develop the professional project management
24751 29816.8 hours competence of the senior management. This significantly strengthened the project control and coordination capabilities of the Company's core
management team.Average Learning Hours per Person Number of Course Tasks Published
17.07 hours 1314 Number of Passes in the Certification Pass Rate of the
First Batch in 2025 First Batch in 2025
50 63.29% (Global Average Pass Rate (Official Data from PMI) 20%-30%)
83 84Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Democratic Management and Communication Occupational Health and Safety Production
Employee Satisfaction Survey Occupational Health and Safety Production Management System
Great River Smart Logistics always regards employees as its most valuable asset. By building a multi-dimensional regular communication and To standardize the Company's HSE management and continuously improve occupational health and safety performance Great River Smart
feedback mechanism it comprehensively understands employees’ needs and is committed to creating a harmonious and progressive work Logistics focuses on creating a safe and compliant working environment and protecting employees’ physical and mental health. It prevents
atmosphere. In improving satisfaction the Company adopts an innovative combination of three approaches: questionnaire surveys discussions workplace injuries and health risks strengthens source prevention and hazard control and promotes the transformation of safety management
and rationalization suggestions. from controlling accidents and inspecting hazards to forward-looking risk prevention and control in order to realize the goals of zero injuries zero
hazards and zero pollution. It has fully built and implemented the HSE management system based on internal management procedures.Full-coverage Questionnaire Surveys: Regularly conduct anonymous employee satisfaction questionnaire Division of
surveys with survey dimensions designed in a scientific manner to accurately capture employees' real thoughts Rights and Responsibilities
and potential needs regarding career development compensation and benefits work environment etc.A multi-level rights and responsibilities management structure is set up: The Chairman leads the formulation of HSE work concepts policies and overall
development strategies and reviews core management systems. The HSE and Innovation Committee of the Board is the top decision-making body
responsible for coordinating and improving the system framework approving annual work plans and special investment budgets analyzing the safety
production situation and implementing reward and punishment recommendations. The Health Safety and Environment Management Office executes
Zero-Distance Discussions: Persistently hold exchange activities such as discussions with youth employees and During the reporting resolutions drafts management systems and target plans coordinates the signing of responsibility letters and facilitates solutions to major management
face-to-face sessions with management which provides opportunities to listen to frontline voices in a relaxing period employee
satisfaction reached challenges. All functional departments strictly implement the requirement that "Whoever in charge of business must be responsible for safety" and and equal atmosphere and meticulously record employee concerns. Unimpeded communication and mutual solidify professional safety assurance. Subsidiaries as the responsibility entities ensure compliance qualifications and operating conditions meet
understanding are ensured. 95.63% standards implement the headquarters’ management requirements and build their own sustainable HSE management mechanisms.Management Policy
Sustainable Suggestion Channels: Vigorously promote the rationalization suggestion mechanism encourage
employees to actively offer suggestions and advice on operations management cost reduction and efficiency Closely aligned with the corporate strategic goals and safety vision the core HSE policy is established as follows: Strictly adhere to laws and regulations
conserve energy reduce consumption and protect the ecology; uphold safe production implement forward-looking prevention and control to reduce
improvement etc. The Company highly values every piece of feedback and has established a closed-loop
occupational risks; maintain integrity in service and meet customer needs; persist in innovation and continuous improvement co-building and sharing
management mechanism of "collection - review - implementation - feedback" to ensure employees' good ideas for excellent results. Relying on this policy a regular management mechanism featuring clear rights and responsibilities complete systems autonomous
can take root. management and continuous optimization has been developed steadily improving the effectiveness of comprehensive HSE management.Core Management Concepts
Employee Communication
Adhere to the bottom line of safety development and make it clear that development should not come at the expense of safety the environment or
Democratic management is a solid cornerstone for Great River Smarter Logistics to build harmonious labor relations. The Company is committed employee health. Strictly abide by the principles of prioritizing red line adherence ensuring responsibility is fully assumed placing prevention upfront
to building an unimpeded two-way communication bridge and fully leverages the functions of the labor union and the Employee Representative and implementing strict control. Uphold a sense of awe strengthen implementation and rely on technology empowerment. Promote company-wide
Assembly to deeply integrate democratic management into the corporate governance system and effectively safeguard employees' rights to know hazard identification and rectify hazards immediately. Strictly enforce pre-job safety training and those who fail the training are strictly prohibited
participate and supervise. from taking up their posts. Resolutely suspend work for rectification if compliance conditions or procedures are absent. Take the safety performance of
In daily operations Great River Smart Logistics encourages employees to offer suggestions and advice through institutionalized channels. partners as the primary criterion for cooperation and implement joint accountability for relevant safety accidents. Implement the assessment principle of
exemption from liability for due performance of duties and accountability for dereliction of duty.Whether regarding operational optimization or daily management employees’ opinions are promptly heard and seriously treated. The Company
collaborates with relevant departments to evaluate communicate and resolve various categories of suggestions raised by employees and ensures
that suggestions are responded and demands are addressed. When employees feel their personal rights need protection or have questions about Implementation Principle and Working Mechanism
management measures they can file appeals with their department head or the HR Department or efficiently communicate information through
the Company's OA office platform which guarantees an unimpeded feedback path and transparent efficient handling processes.At the same time the Company regularly conducts comprehensive employee satisfaction surveys with full coverage to widely collect employees' The management work is guided by the following core principles: hierarchical local management multi-party collaborative supervision full-process
genuine feelings and suggestions for improvement regarding compensation and benefits rest and leave career development etc. It actively adopts documentation clear assignment of powers and responsibilities to individuals effective supervision strict implementation of rewards and punishments
in accordance with regulations combination of education with punishment and a balance between service guidance and supervision and assessment.reasonable elements from such suggestions continuously improves its human resource management policies and strives to create a warmer and Subsidiaries are all subject to the management and assessment of the headquarters strictly implement the established policies and systems establish
more fulfilling workplace for employees. an internal management structure in light of local conditions and complete the filing procedures. At the same time a regular working mechanism should
As institutional assurance for democratic management Great River Smart Logistics strictly complies with the Trade Union Law of the People's be established to ensure the efficient implementation and sustainable operation of the occupational health and safety production management system
Republic of China and other laws and regulations. Under the guidance of the Group's labor union organization it regularly conducts collective through special meetings interviews and notifications letter reminders designated supervision and accountability processes.consultation and democratic evaluation to ensure full protection of employees' legitimate rights and interests.
85 86Annual Sustainability Report
Great River Smart Logistics Co. Ltd.
14 subsidiaries of Great River Smart Logistics have completed the integrated certification of ISO9001 ISO14001 and ISO45001. Occupational Health and Safety Production Risk Management
The Company integrates risk control into daily operations through a lifecycle management system responding to ESG (Environmental Social and
Governance) goals:
Management Specific
Module Measures Detailed Description
Use HAZOP and LOPA analysis methods to systematically identify potential safety hazards in tank
Professional risk farms and loading/unloading areas; rely on JSA to break down processes and grade management risks
Risk Identification and analysis for specialized operations such as repackaging of hazardous chemicals and equipment inspection/
Assessment maintenance.Chemical Strictly refer to Safety Data Sheets (SDS) to define exposure limits and emergency handling procedures for
information control various chemicals achieving full transparency management of hazardous chemical safety information.Intelligent closed- Promote automated operations and closed-system transformation deploy intelligent level monitoring
loop management automatic sprinkler and gas leak detection equipment and reduce direct personnel contact with hazardous chemicals.Engineering Control
and Technical Real-time environmental Build a comprehensive monitoring network deploy combustible gas alarms and VOCs online monitoring Monitoring monitoring equipment and synchronize data to the central control room in real-time for immediate risk alerts.Explosion-proof and Implement storage tank grounding select explosion-proof electrical equipment configure anti-static
static protection tooling and build a multi-layer explosion-proof and anti-static safety protection system.Graded protection Provide differentiated personal protective equipment (PPE) from Level A to D based on job exposure risk
configuration levels and precisely ensure operational safety.Practical operation
Personnel Protection qualification Regularly conduct leak plugging and fire evacuation emergency drills; hazardous chemical operators must
and Training management pass professional qualification assessments before starting work.On-site behavior Implement on-site safety inspections by the management promptly correct unsafe behaviors and
control optimize training content establish hazard reporting reward mechanisms to incentivize employees to proactively identify and report hazards and strengthen company-wide safety ownership awareness.Graded emergency Establish three-tier emergency plans at company regional and group levels and build joint response
response mechanisms for sudden incidents such as leaks and fires.Emergency Response
and Sustainability
Integration Clean low-carbon Adopt clean production technologies such as wastewater reuse and RTO exhaust gas treatment to reduce
and risk reduction pollutant emissions and lower environmental and occupational health risks at the source.Closed-loop system Regularly review the effectiveness of the ISO45001 occupational health and safety management system
optimization based on the PDCA cycle management and dynamically optimize the management processes.Continuous
Improvement
Mechanism
Multi-party
collaborative Share safety data with customers and neighboring enterprises deeply participate in developing industry
governance safety standards and strengthen collaborative risk prevention capabilities across the supply chain.w
Sustainable Development Opportunities
（1）Efficiency Driven by Technology Upgrade: Intelligent storage systems can simultaneously reduce safety risks and operational costs.
（2）Industry Benchmark Effect: High-standard management enhances customer trust and helps to secure high-value-added orders.
（3）P olicy Compliance Advantage: Early adaptation to regulations such as the new Work Safety Law of the People's Republic of China and the
Special Rectification of Hazardous Chemical Safety helps avoid penalty risks.Through the measures above Great River Smart Logistics controls occupational health and safety risks at the ALARP (As Low As Reasonably
Practicable) level while transforming risk management into a core driving force for enterprise resilience enhancement and sustainable
development.
87 88Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Reviews of documents including the Emergency Response Plan for Environmental Incidents were carried out in multiple terminals
Terminals including Zhongshan GR Terminal Fujian Gangfeng Energy Changshu Great River Dongguan Evergrowing Terminal and Dongguan
Great River Petrochemical Terminal invited local government port authority representatives and experts to focus on reviewing the core content
of the Emergency Response Plan for Environmental Incidents including the organizational system emergency response procedures and resource
assurance measures. The review served as an opportunity to further strengthen company-wide safety awareness consolidate the foundation for
safety production improve emergency management levels prevent safety risks at terminals and fostered a robust risk management culture.Lishadao Base in Dongguan held the launch ceremony of the
2025 "Safety Production Month"
Fujian Gangfeng Energy reviewed the emergency Zhongshan GR Terminal reviewed the emergency
response plan for safety production incidents response plan for environmental incidents
Great River Smart Logistics organized a special training session Zhongshan GR Terminal participated in a training session on ship-borne
during the Safety Production Month dangerous cargo loading/unloading operation safety knowledge
Dongguan Great River Petrochemical Terminal reviewed the Dongguan Evergrowing Terminal reviewed the special safety evaluation
emergency response plan for safety production incidents report on dangerous cargo port operations (adjusting cargo types)
Great River Smart Logistics' risk management publicity runs throughout the year and is strictly implemented. The risk management publicity focuses
on the core risk points associated with hazardous chemicals covering special areas such as major hazard determination equipment and facility
maintenance key operation control and emergency drills highlighting the systematic nature and precision of technical management. Concurrently
each terminal of Great River Smart Logistics carries out regular multi-scenario emergency drills throughout the year. These drills cover key risk areas
such as hazardous chemical leaks fires flood control confined space operations and emergencies involving "passenger buses tourist coaches and
dangerous goods vehicles". Company-wide hazard identification and skill enhancement are carried out on "Safety Production Month" and "Fire
Protection Awareness Month". By ingraining concepts such as "Eight No-Harm Principles" for guidance Great River Smart Logistics internalizes
Changshu Base conducted a "119" fire emergency drill activity Nantong Power Shell Petrochemical held an environmental
risk management from system requirements into company-wide consciousness. High-frequency multi-form practical drills effectively verify the
incident emergency drill in Nantong City
feasibility of emergency plans putting the emergency management concept of "getting prepared through drills and preventing before accidents
occur" into practice. An all-weather full-chain three-dimensional prevention and control network solidifies the foundation for the Company's safe
development.
89 90Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Emergency Management Publicity Training and Drill
Great River Smart Logistics Operation Centers and subsidiaries widely publicize common knowledge on emergency response laws and regulations
In order to conscientiously implement the safety policy of "putting safety first prioritizing prevention and implementing comprehensive prevention risk avoidance self-rescue mutual aid and disaster alleviation. They continuously strengthen training and learning on contingency
management" and in accordance with laws such as the Work Safety Law of the People's Republic of China (Order No. 88 of the President) and plans and knowledge for preventing natural disasters and emergencies and improve employees' emergency awareness and response capabilities.the Emergency Response Law of the People's Republic of China (Order No. 69 of the President) as well as regulations and rules including the Furthermore special emphasis is placed on the training and practice of emergency response professionals by conducting skills competitions and
Administration Measures for Contingency Plans for Emergencies (Guo Ban Fa [2013] No. 101) the Regulations on Emergency Response to Work employees with expertise versatile skills and technical proficiency are encouraged.Safety Accidents (Order No. 708 of the State Council) the Management Measures for Emergency Response Plans for Work Safety Accidents (Order
No. 2 of the Ministry of Emergency Management) and the Regulations on Reporting Investigation and Handling of Work Safety Accidents (Order Average Safety
No. 493 of the State Council) Great River Smarter Logistics has formulated the General Contingency Plan of Great River Smart Logistics Co. Ltd. Safety Education and Safety Education and Safety Education and Coverage Rate of Safety
or Emergencies to address possible emergencies and minimize accident damage based on the Guidelines for Enterprises to Develop Emergency Education and Training
Response Plan for Work Place Accidents (GB/T 29639-2020) and the Administration Measures for Contingency Plans for Emergencies among Training Sessions Training Participants Training Duration Education and Training Duration Per Person
other requirements and considering the actual situation of the Group under the principles of being "people-oriented compliant with laws and
regulations practical and result-oriented." The General Contingency Plan includes emergency response plans for work safety accidents natural 611 sessions 31512 person-times 53691.6 hours 30.74 hours 100%
disasters public health incidents and social security emergencies.Emergency Organization System and Responsibilities In 2025 the Company's subordinate units carried out various forms of emergency skills training competitions and drills according to the emergency
training and drill plans such as organizing emergency leak plugging on-site hands-on practice of wearing bone conduction headphones chemical
The emergency organization system of Great River Smart Logistics for emergencies consists of the Emergency Leadership Committee the Office of protective clothing and breathing apparatus carrying the wounded on a stretcher over 50m connecting 40m fire hoses and hitting the target
the Emergency Leadership Committee the Emergency Expert Group and the Operation Centers as well as the Comprehensive Support Group the practical firefighting skills competitions skills competitions for putting on firefighting suits and connecting hoses emergency evacuation drills
On-site Emergency Handling Group the Information and Communication Technology Support Group the Investigation and Assessment Group CPR and anti-terrorism drills for preventing vehicle ramming attacks.the Expert Group and the Post-incident Handling Group formed with the participation of subsidiaries at all levels and various special emergency
command centers (temporary). Among these the On-site Emergency Handling Group should based on the actual situation coordinate with the
safety and environmental protection management department of the subsidiary where the incident occurred to establish an Emergency Rescue
Group Medical Rescue Group Material Supply Group Pollution Prevention and Control Group Evacuation and Security Group and Information
Liaison Group.Emergency Leadership Committee
Emergency Leadership Committee
of Great River Smart Responsible for making emergency decisions and plans
(Safety Committee) Office of the Emergency commanding response reporting for assistance and carrying
Committee (Office of the
Safety Committee) out post-incident reconstruction as the highest leadership for the Nantong Base conducted a safety knowledge competition during the Safety Month Taicang Power Shell Petrochemical conducted a safety knowledge competition
Special Emergency Command Center of Company's emergency response.Great River Smart (Command-
er-in-Chief/Deputy Commander-in-Chief)
Office of Emergency Leadership Committee
Responsible for drafting and revising plans submitting information
liaising guiding drills and coordinating emergency response as the
routine administration body.Emergency Expert Group
Responsible for participating in research on major issues during
emergencies and providing decision-making consultation and
technical support for situation assessment emergency response Emergency drill at a subordinate terminal Emergency drill at a subordinate terminal
rescue guidance investigation and evaluation.Emergency Command
Organization of Subsidiary
Emergency Response Special Emergency Command Center
Office of Subsidiary
On-site Emergency
Command Center Special Emergency Command Center is established by the Emergency
Management Committee of the Group after an emergency occurs
to be responsible for coordinating on-site emergency command:
assessing the situation formulating and implementing rescue plans
coordinating various forces for response searching rescuing and
evacuating personnel promptly submitting information and requesting
support; transferring command authority as stipulated obeying unified
government command and completing other tasks assigned by the
Emergency Leadership Committee. CPR safety training session at a subordinate terminal CPR safety training session at a subordinate terminal
9192
Great River Smart Group Level Subsidiary Level
Expert Group
Emergency Expert
Group Information Liaison
Group
Incident Investigation Pollution Prevention
Group and Control Group
Evacuation and
Post-incident Handling Security Group
Group
XXXX Group
Emergency Handling
Group
Material Supply
Group
Communication
Technology Support Group Medical Rescue
Group
Comprehensive Support Emergency Rescue
Group Group
Emergency Command Leadership of Governments at All
Levels and Industry Competent AuthoritiesAnnual Sustainability Report
Great River Smart Logistics Co. Ltd.Occupational Health Protection Measures Safety Culture Construction
Subsidiaries of Great River Smart Logistics comprehensively implement occupational health protection for employees in strict accordance with In 2025 the Safety Committee Office of the Company organized subsidiaries to hold 14 internal training sessions covering topics such as the
national laws regulations and industry standards. interpretation of the Detailed Rules on Safety Risk Assessment for Vapor Storage and Transportation Enterprises (2025 Revised Edition) the 2025
Continuing Education Training for Safety Supervisors of Special Operations and Use of the Electronic Operation Permit System the Report on
Safety Risk Investigation and Control Measures for Berthing/Unberthing in the Terminal of Yangtze River Section in Jiangsu the Management
First strengthen basic operational support continuously optimize the working environment and provide employees with Measures for Operational Accidents the Safety Management Measures for Storage Tank Cleaning Operations the Great River Smart Knowledge
compliant and healthy work spaces supporting protection facilities and specialized tools. When signing labor contracts Exchange on Cargo Suitability Assessment for Storage and Transportation the Special Training on Hazard Identification Knowledge for Safety
new hires are truthfully informed of potential occupational hazards related health risk consequences and specific protective Production the Sharing of 24 Common Violations in Environmental Protection Management Enforcement the Training on the Use of Hazard
measures associated with the post in order to safeguard their right to know. Identification System the Ideas and Methods on the Application of AI Tools in HSE Work and the Company-wide Safety Awareness Enhancement.Subsidiaries carry out three-level safety education and training for new hires and recurrent safety training for operational personnel according to
their respective training plans.Second standardize hazard declaration and publicity management promptly and truthfully declare all types of occupational
hazards existing in the production process to the competent local authorities as required and actively accept official supervision
while simultaneously disclosing relevant information to employees. Regularly conduct testing of occupational hazards at fixed
points in the workplace set up public notices in the testing areas and uniformly archive testing results in employee occupational
health records. For high-hazard positions strictly set up prominent warning signs according to standards and clearly mark the
type and health impact of the hazard prevention points and emergency treatment methods.Chengdu Great Smart Warehousing conducted safety risk and acumen training Nanjing Great River conducted safety risk and acumen training
Third strengthen emergency protection support. Fully deploy intelligent alarm devices in work areas prone to sudden acute
poisoning or harmful leaks and formulate special emergency response plans. Provide adequate on-site first aid materials and
special emergency equipment and map out emergency evacuation routes and specialized risk relief areas. Concurrently store
protective equipment and first aid supplies in designated locations which are managed by designated personnel and regularly
calibrated maintained and updated to ensure that they are always ready safe and effective.Fourth improve health record management regularly organize employees to undergo compliant occupational health checkups Nantong Great Smart conducted safety risk and acumen training Lishadao Base conducted the 2025 continuing education and training on
establish comprehensive occupational health files on a "one file for one person" basis track employees’ occupational health special operations
status from beginning to end and achieve dynamic and closed-loop management of occupational health.Occupational Health and Safety Production Indicators and Targets
Centered on the annual key task of "identifying and rectifying hazards by strengthening self-inspection and self-detection achieving environmental emission
compliance and waste-to-resource conversion as soon as possible and promoting comprehensive and substantial improvement in safety and environmental
protection management levels" Great River Smart has set the following occupational health and safety production indicators and targets:
Safety Production Measures Safety Management Targets
No concealment or delayed reporting of work safety accidents; no serious injuries occupational diseases or fatalities;
Special operations (e.g. hot work confined space entry and work at heights) are high-risk operations prone to work safety accidents. The Company
achieves an upgrade and transformation of traditional safety management models through digital means. It has independently built a safety no major accident hazards leading to penalties or production suspension orders by government authorities.management system of which the electronic permit module for special operations and the hazard investigation and management module have Resource Investment and System Assurance Targets
been put into use. In 2025 100% of the permits for special operations in Great River Smart were electronic. Subsidiaries across the Company issued
a total of 10451 electronic operation permits throughout the year which significantly improved the production safety level of the Company's 100% coverage rates of both work-related injury insurance and safety production liability insurance; 100% coverage rate
special operations. of employee health checkup; 14 entities obtaining ISO45001 certification.
93 94Annual Sustainability Report
Great River Smart Logistics Co. Ltd.
06
Partnership Cooperation and
Industry Advancement
Responsible Supply Chain 97
Industry Advancement 99
Social Contribution and Rural Revitalization 103
95 96Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Responsible Supply Chain Supply Chain Risk Management
The Company has established a full-chain regular closed-loop supply chain risk management system. Under the coordination of the Strategy
Supply Chain Management System and Strategy and Sustainable Development Committee it conducts systematic risk identification assessment and prevention for key aspects such as supplier
access contract fulfillment delivery quality safety environmental protection and business ethics. It strictly implements supplier due diligence
and dynamic risk monitoring regularly conducts special inspections on environmental compliance safety production occupational health and
Supply Chain System Development anti-commercial bribery and strengthens focused management and emergency response for high-risk suppliers. It improves the early warning
and emergency support mechanisms against supply chain interruption enhances supply chain resilience and risk resistance and resolutely
Under the overall coordination and guidance of the Strategy and Sustainable Development Committee the Company's supply chain prevents compliance risk safety risk environmental risk and reputational risk. Through system constraints process supervision performance
system continuously improves the sustainable development governance structure of the supply chain. The Procurement Department leads accountability and continuous improvement it ensures the entire supply chain is compliant transparent safe and stable with controllable risk
the coordination and the HSE Risk Control Legal Operations and Finance Departments as well as various business units participate in building a robust safety defense line of supply chain for the Company's stable operations and sustainable development.collaboration to form a cross-departmental full-process closed-loop supply chain sustainable development management mechanism.Focusing on core topics such as development of responsible supply chain environmental compliance social responsibility business ethics
and responsible mineral due diligence management it systematically advances system implementation hazard screening performance Supply Chain ESG Management
evaluation and continuous improvement to ensure the entire supply chain is compliant transparent robust and controllable.The Company continuously optimizes its system framework including the Management Regulations on Procurement Suppliers. It embeds
the requirements for environmental performance occupational health and safety human rights protection anti-fraud and anti-corruption The Company fully embeds the ESG concept into the lifecycle management of the supply chain. Under the guidance of the Strategy and Sustainable
low carbon and emission reduction into the entire lifecycle of supplier access contract fulfillment assessment and exit thereby promoting Development Committee it has built a supply chain ESG management system covering the environment society and governance dimensions. It
unified standards standardized management and effective implementation for supply chain sustainable development. continuously improves supplier ESG access standards and grading evaluation mechanisms incorporating core requirements such as low-carbon and
emission reduction pollution prevention and treatment safety production occupational health human rights protection anti-corruption and fair
business ethics into the entire process of audit contract fulfillment assessment and exit. It regularly conducts supply chain ESG risk assessments
due diligence and on-site verification strengthens the management of high-risk areas and implements responsible mineral and conflict mineral
Supply Chain Strategy due diligence. Through standard output special training technology empowerment performance supervision and collaborative improvement
it drives upstream and downstream partners to improve ESG management levels together promotes the green transformation and compliance
The Company adheres to the value positioning of "building a safe green agile efficient and value co-creating modern chemical storage and logistics
upgrading of the supply chain and builds a safe resilient green transparent and responsible sustainable supply chain ecosystem.supply chain ecosystem." It set the 2025 supply chain strategic goal of "creating a supply chain system featuring compliance guarantee reliable quality
optimal cost low-carbon leadership and enhanced resilience and making it the core value driver of the Company's high-quality development."
Focusing on the four strategic directions of safety and resilience green and low-carbon development digital and intelligence and collaboration for
win-win it continuously strengthens end-to-end supply chain control capabilities and core competitiveness. Supply Chain Integrity Construction
Adhering to long-term commitment and the concept of win-win partnership the Company continuously improves the sustainable development levels
and comprehensive service capabilities of suppliers through standard output capability empowerment technical collaboration and resource sharing. The Company treats integrity and compliance as the bottom-line requirement for supply chain management continuously deepens the construction
It promotes green transformation compliance upgrading and efficiency improvement up and down the supply chain creating long-term value for its of a supply chain integrity system and fully builds a barrier against integrity risks. It strictly implements the integrity and transparent procurement
stable operations industrial chain security and social sustainable development. system embeds integrity management requirements into the entire process of supplier access bidding and inquiry contract signing contract
fulfillment and delivery acceptance and payment. It signs integrity practice agreements and anti-commercial bribery clauses with 100% of its
suppliers which clarify integrity responsibilities and breach penalty mechanisms. It has established a joint supervision mechanism covering
Supply Chain Management Measures procurement operations audit and legal affairs to ensure unimpeded multi-channel reporting mechanisms and strengthens the supervision
investigation and accountability for commercial bribery benefit transfer and unfair competition. It regularly conducts supply chain integrity
warning education compliance training and cultural promotion so as to ingrain the concept of integrity throughout the supply chain. It builds an
The Company systematically promotes the implementation of supply chain sustainable development based on the principles of full-process control
open and transparent fair and just honest and law-abiding and win-win integrity supply chain cooperation ecosystem and effectively safeguards
full-dimension empowerment and full-chain compliance. It has established supplier access and grading management mechanisms incorporating
the legitimate rights and interests of the Company and its stakeholders.indicators such as environmental compliance safety production occupational health business ethics low-carbon and emission reduction into
access audits and annual assessments to drive suppliers to continuously improve their sustainability performance. The Company strengthens supply
chain management and conducts supply chain risk assessments and due diligence to ensure supply chain transparency and traceability. It improves
the green procurement and integrity procurement system and prioritizes energy-saving environmentally friendly and low-carbon products and Conflict Minerals Statement
services. It fully implements the signing of integrity agreements as a means to solidify the compliance bottom line. Training empowerment standard
output technical collaboration and performance supervision are utilized to help suppliers improve risk management capabilities and green The Company strictly complies with relevant laws regulations and ESG-related guidelines resolutely prohibits the use of conflict minerals. As of
operation levels and build a safe stable green efficient and win-win supply chain ecosystem thereby providing solid support for the Company's the reporting period the Company's main business and production operation activities do not involve the procurement use or processing of any
sustainable development. conflict minerals effectively fulfilling its corporate social responsibility.
97 98Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Industry Advancement
Supplier Training Deeply Participate in Local Industrial Symposia: Wang Jian
Chairman of the Nantong Base has been invited several times
The Company incorporates supplier capability enhancement and ESG compliance building into its regular empowerment system. Focusing on core to participate in government-enterprise exchange activities
content such as safety and environmental protection compliant operations integrity and honesty green and low-carbon practices and quality such as the Entrepreneur Symposium in the Rugao Port
control it conducts tiered and classified supplier training that combines online and offline methods. Through policy interpretation standard Chemical New Material Industrial Park where he actively offered
promotion and implementation case studies on-site coaching and online courses the Company communicates its sustainable development
suggestions and advice on policy implementation industrial
requirements supply chain management standards safety production bottom lines integrity practice guidelines and environmental emission
transformation and corporate needs promoting efficient
reduction highlights to suppliers helping them strengthen risk awareness improve management levels and address capability gaps. The
Company continuously improves the training closed-loop mechanism maintains training records assessment and effect tracking promotes the government-enterprise coordination.transformation of training results into overall supply chain compliance capability and sustainability performance improvement and works with Nantong Base attended the Entrepreneur Symposium in the
suppliers to build long-term cooperation relationships characterized by professionalism and compliance safety and high efficiency green and Rugao Port Chemical New Material Industrial Park
transparency and collaborative advancement.Lead Industry Development
Organize and Host Industry Exchange Activities:The Company actively builds platforms for industry exchange. For example an event
of the Enterprise Safety Alliance of Nantong Port for Major Hazard Sources was held at Nantong Power Shell Petrochemical to promote
As a leading enterprise in the domestic private chemical storage industry Great River Smart Logistics consistently adheres to a customer-centric the sharing of safety management experience among enterprises. Nanjing Great River hosted representatives attending the 2025 Seminar
approach actively engages in industry standard development technological innovation exchange safety management and talent cultivation and on Liquid Hazardous Chemical Storage Safety Technology Development where it showcased its achievements in digital management
continuously drives the industry towards intelligence green practices and efficiency. Through multi-level multi-form industry participation the safety monitoring and green operations. Nantong Base received Lianyungang Port International Petrochemical Storage Co. Ltd. and the
Company constantly improves its comprehensive strength to facilitate the high-quality development of the chemical logistics industry. two sides discussed new paths for intelligent and green development in the petrochemical storage industry.Deeply Participate in Industry Exchanges and Promote Collaborative Development of the Industry
Great River Smart Logistics places high importance on exchanges and cooperation with government departments industry associations
research institutions and industry chain partners as reflected in its active participation in various forums seminars and government-
enterprise discussions to continuously share industry insights and corporate experience.Participation of Senior Management in Industry Forums: Chairman Lin Haichuan has been invited to attend several major industry
events. For example he participated in the roundtable discussion at the 10th CEIBS Innovation Forum · Dongguan Station where he shared
Great River's practical experience in applying AI in such areas as equipment safety monitoring and employee behavior analysis around the
theme "AI Breakthrough Reshaping Enterprise Growth." As the Talent Introduction Ambassador of Guangdong he attended the "Gathering
of Million Talents in Southern Guangdong" event in Hangzhou to promote the Company's development and digital transformation
Representatives attending the 2025 Seminar on Liquid Hazardous Nantong Power Shell Petrochemical hosted an event of the Enterprise Safety
opportunities to talents from the Yangtze River Delta region. He also lectured to students of the Shenzhen Entrepreneur Training Program
Chemical Storage Safety Technology Development visited for exchange Alliance of Nantong Port for Major Hazard Sources
"Shining Stars Over Pengcheng" systematically sharing Great River Smart' strategic path and practical experience in upgrading the
industrial chain through mergers and acquisitions.Chairman Lin Haichuan attended the roundtable Chairman Lin Haichuan lectured to students of Chairman Lin Haichuan attended the "Gathering
discussion at the 10th CEIBS Innovation Forum · the Shenzhen Entrepreneur Training Program of Million Talents in Southern Guangdong" event Lianyungang Port International Petrochemical Storage Co. Ltd.Dongguan Station "Shining Stars Over Pengcheng" in Hangzhou visited for exchange
99 100Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Focus on Safety and Technological Innovation and Lead Industry Standard Development Promote the Construction of Industrial Workforce and Build a High Ground for Skilled Talent
Great River Smart Logistics consistently treats safety production and technological innovation as the cornerstones of its development and actively Great River Smart adheres to a talent-driven development strategy actively promotes the reform of the industrial workforce construction improves
participates in the formulation of industry safety standards technical seminars and emergency management system development. employees' skills and well-being and provides solid talent support for the industry's sustainable development.Safety Standards and Lightning Protection Management: The Company
places high importance on lightning protection safety for hazardous
chemical enterprises. In collaboration with the Lightning Protection and
Mitigation Management Center of Guangdong Province and an expert
group an exchange activity on lightning protection safety of hazardous
chemicals was conducted at Zhongshan GR Terminal to delve into topics
such as the national standard Determination for Major Hidden Dangers Government Recognition for Industrial Workforce Reform Case:
in Lightning Protection Safety of Hazardous Chemical Enterprises and The case Multiple Measures to Deepen Industrial Workforce Reform and Enhance Employees'
promote the standardization and normalization of lightning protection Skills and Well-being from Nantong Power Shell Petrochemical was successfully selected as a
safety management in the industry. Zhongshan GR Terminal conducted an exchange activity on typical case for the 2024 industrial workforce construction reform in Rugao City serving as an
lightning protection safety of hazardous chemicals important reference for the city's industrial workforce construction reform.Typical case for the 2024 industrial workforce
Safety Management of Old Vessels:Fujian Gangfeng Energy organized construction reform in Rugao City
and held the "Seminar on High-Quality Vessel Selection and Berthing
Safety for Old Liquid Cargo Vessels". The seminar clarified three core
measures of vessel access standards safety self-inspections and
emergency coordination which promoted the upgrading of port operation
safety management and provided a reproducible and scalable safety University-Enterprise Cooperation and Lifelong Learning：
management model for the industry.Fujian Gangfeng Energy organized a seminar on high-quality ship The Company actively participates in university-enterprise co-
selection and berthing safety for aging liquid cargo vessels construction and talent development activities. General Advisor Lin
Nantong visited the City University of Hong Kong (Dongguan) to give
a lecture on the Entrepreneurial Path and Insights - Establishing a
Habit of Lifelong Learning in which he shared his entrepreneurial and
Intelligent System Development：Great River Smart launched the Management of Customer Relationship (MCR) System project to learning experiences spanning six decades and inspired young students
promote the standardization and refinement of customer management. Nantong Great Smart Terminal deeply applies the "Smart Port to establish a mindset of lifelong learning. The Company continuously
Management System" "SAP Tank Farm Automation System" and "Anti-static Intelligent Early Warning System" to achieve efficient and safe promotes employee skill improvement and job growth and creates a
storage operations serving as a demonstration for the industry's digital and intelligent transformation. positive atmosphere that advocates skills and respects talent. Chairman Lin Haichuan and Director Lin Nantong attended the
themed lecture in the City University of Hong Kong (Dongguan)
Great River Smart will always uphold the "customer-centric" core value in continuously deepening multi-party cooperation
with governments industries universities and research institutions play a leading role in standard formulation
technological innovation safety management and talent cultivation and make greater contributions to promoting the high-
quality development of the chemical storage industry ensuring the safety and stability of the industrial and supply chains
and serving regional economic transformation and upgrading.Great River Smart launched the MCR system project Nantong Great Smart Terminal successfully completed unloading
of a 7000-ton diesel vesse
101 102Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Supply Chain Collaborative Development Community Co-building and Caring for Social Groups: Building Harmonious Neighborhoods and Paying Tribute to Frontline Workers
The Company always values its close connection with surrounding communities with a commitment to building harmonious neighborly relations.Based on the characteristics of the chemical storage and logistics industry and its vision for global development the Company adheres to the cooperation Around terminals and docks the Company constantly issues safety and environmental risk notifications sets up emergency drill open days and
concept of putting safety first and quality foremost and seeking win-win collaboration. It held the 2025 Annual Supplier Conference of Great River Smart organizes community visits with the aim of enhancing the scientific understanding and trust among the public in the hazardous chemical storage
Logistics under the theme "Sincere Collaboration for Jointly Exploring a New Chapter of Development." The conference focused on key issues such industry. In 2025 the Company and its various terminal areas conducted a total of 59 community communication and co-construction activities.In terms of caring for social groups relying on the "GR Spark Volunteer Service Team" the Company launched a series of volunteer services such as
as safety compliance of supply chain green operations digital collaboration and risk prevention and control while building a platform for in-depth
"Coolness Delivery in Summer" "Mosquito Prevention and Control Publicity" and "Blood Donation Drives" to primarily benefit frontline workers
communication experience sharing and resource alignment between supply and demand sides. The Company communicates sustainable development and grassroots groups such as sanitation workers and community elders. These initiatives transmitted warmth and care through practical actions. In
standards empowerment and enhancement plans and collaborative improvement initiatives to all partners and strengthens strategic mutual trust 2025 the Company and its terminal areas conducted 23 charitable activities with over 200 volunteer participants.capability co-building and responsibility sharing along the upstream and downstream of the supply chain. It continuously promotes simultaneous
upgrade concerted efforts and joint advancement with suppliers and builds a high-quality supply chain ecosystem characterized by safety and stability
green and efficiency transparency and compliance and long-term win-win cooperation with suppliers.Equal Treatment of SMEs
The Company consistently adheres to the cooperation principles of fairness openness transparency and non-discrimination. In the entire process of supplier
access bidding and procurement contract performance payment and assessment it treats all types of cooperation entities equally and fully safeguards the
legitimate rights and interests of SMEs. The Company continuously optimizes its procurement mechanism simplifies the cooperation processes for SMEs lowers
cooperation barriers and actively creates fair market participation opportunities for SMEs. It resolutely eliminates differential treatment unreasonable barriers Nantong Base conducted the blood Taicang Power Shell Petrochemical conducted Changzhou Great River conducted the blood
or discriminatory restrictions. It treats all parties equally in business cooperation information communication empowerment support and payment guarantee donation drive the blood donation drive donation drive
promotes the collaborative development and mutual benefit of large medium and small enterprises and takes practical actions to maintain a healthy and
orderly supply chain ecosystem and promote fair competition and high-quality development in the industry.Social Contribution and Rural Revitalization
Social Contribution Lishadao Base in Dongguan conducted Nanjing Great River conducts the event of Zhongshan GR Terminal conducted
the "Accessible Travel with Love" initiative "Transmitting Love to Left-behind Children" a safety drill
Great River Smart consistently upholds the corporate mission of "creating comprehensive value for society." Using the "Haoshan Charity Fund"
and "GR Charity Day" as vehicles it is continuously committed to charitable causes. In 2025 relying on the "Haoshan Charity Fund" platform the
Company carried out a series of targeted donations and volunteer services in areas such as educational support community co-construction and
environmental protection fulfilling its corporate social responsibility through practical actions.Charity Brand Event: Gathering the Power of Love and Spreading Kindness
In June 2025 the Company successfully held the 7th "GR Charity Gala". The Rizhao Great River's public environmental Changshu Base's public environmental
event invited charity partners and employee representatives to conduct protection activity protection activity
discussion and co-creation around topics such as green and low-carbon
practices community co-construction and corporate social responsibility Rural Revitalization
which continuously deepened the understanding and recognition of
sustainable development across all sectors of society. At the gala Chairman The Company deeply recognizes the importance of the rural revitalization strategy for the national development endeavor. It actively responds to the
Lin Haichuan shared Great River's original charity aspiration and called for national action call that "ten thousand enterprises revitalize ten thousand villages". Considering its own business layout characteristics it focuses on
more people to pay attention to and participate in charity.Chairman's Address at the 7th "GR Charity Gala" participating in rural construction through means such as employment assistance with priority given to the recruitment of people lifted out of poverty
and returning migrant workers for local employment. Meanwhile it provides vocational skills training and pre-job practical training promotes the organic
integration of rural revitalization work with the Company's business development and contributes to comprehensive and sustainable rural revitalization.
103 104Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Appendix Environmental Performance
Indicator Name Indicator Unit 2025
Quantitative Performance Indicators
Subsidiaries with Green Port Certification (3-star) Times 3
Governance Performance
Subsidiaries with ISO14001 Certification Sites (Base/Terminal) 14
Indicator Name Indicator Unit 2025 Subsidiaries with Clean Production Certification Times 5
Board Meetings Held Times 18 Environmental Emergency Drills Times 53
Board Proposals Reviewed Items 77 Amount of Environmental Administrative Penalties CNY10000 0
Board Director Attendance Rate % 100
Environmental protection Publicity and Training Sessions Times 26
General Meetings of Shareholders (Regular and Extraordinary) Times 13
Audit Committee Meetings Held Times 13 Environmental protection Publicity and Training Participants People 857
Remuneration Committee Meetings Held Times 6
Amount of Administrative Penalties for Pollutant Discharge CNY10000 0
Nomination Committee Meetings Held Times 3
Board Members People 9 Total Industrial Wastewater m3 69005
Independent Directors People 4 Total Domestic Wastewater m3 23810
Proportion of Independent Directors % 44
Total Wastewater Discharge t 92815
Independent Director Allowance CNY10000/year 12
Proportion of Independent Directors in Audit Committee % 67 Chemical Oxygen Demand (COD) Emissions t 7
Proportion of Independent Directors in the Nomination Committee % 67
Biochemical Oxygen Demand (BOD) Emissions t 1
Proportion of Independent Directors in the Remuneration and Evaluation Committee % 67
Proportion of Female Board Directors % 0 Ammonia Nitrogen (NH3-N) Emissions t 0
Proportion of Female Executives % 0 Total Nitrogen (TN) Emissions t 1
Investor Questions Answered on Exchange Platform Times 54
Total Phosphorus (TP) Emissions t 0
Announcements Released Items 177
Commercial Bribery and Corruption Incidents Times 0 Nitrogen Oxides (NOx) Emissions t 1
Anti-Commercial Bribery and Anti-Corruption Training Sessions Times 6
Sulfur Oxides (SOx) Emissions t 0
Total Number of Directors Covered by Anti-Commercial Bribery and Anti-
Corruption Training Sessions People 7 Volatile Organic Compounds (VOC) Emissions t 402
Percentage of Directors Covered by Anti-Commercial Bribery and Anti-Corruption
Training Sessions % 100 Particulate Matter (PM) Emissions t 0
Total Number of Management Personnel Covered by Anti-Commercial Bribery and
Anti-Corruption Training Sessions People 71 Total Waste Generated t 224
Percentage of Management Personnel Covered by Anti-Commercial Bribery and
Anti-Corruption Training Sessions % 25 Total Amount of Non-Hazardous Waste Generated t 12
Total Number of Employees Covered by Anti-Commercial Bribery and Anti-
Corruption Training Sessions People 141 Total Generation of Hazardous Waste t 224
Percentage of Employees Covered by Anti-Commercial Bribery and Anti-
Corruption Training Sessions % 8 Total Water Intake t 537618
Amount Involved in Lawsuits or Major Administrative Penalties Due to Unfair CNY10000 0 Total Water Consumption t 456922Competition by the Company
105 106Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Indicator Name Indicator Unit 2025 Indicator Name Indicator Unit 2025
Total Water Recycling and Reuse t 20979 CCER Registered Projects Items 0
Water Recycling and Reuse Rate % 4 Registered Projects under Other Mitigation Mechanisms Items 1
Wastewater Treated and Discharged by Treatment Plant t 80696 Estimated Total Emission Reduction by Other Mitigation Mechanisms tCO2e 830
Total Comprehensive Energy Consumption tce 5279608 Traded Emission Reductions from Other Mitigation Mechanisms tCO2e 830
Direct Energy Consumption tce 4272880 Electricity Saved through Green Office tce 18435
Indirect Energy Consumption tce 3935
Paper Weight Saved through Green Office t 120
Coal Consumption tce 0
Water Saved through Green Office t 7705
Gasoline Consumption tce 24562
Diesel Consumption tce 97443
Liquefied Petroleum Gas (LPG) Consumption tce 0 Social Performance
Electricity Consumption tce 4272880
Indicator Name Indicator Unit 2025
Steam Consumption tce 3935
Customer Complaints Times 52
Total Clean Energy Consumption tce 880789
Proportion of Clean Energy in Total Energy Consumption % 17 Customer Satisfaction (Terminal Tank Storage) % 99
Natural Gas Consumption tce 790401 Customer Satisfaction (Chemical Warehouse) % 99
Wind Energy Consumption tce 0 Amount Involved in Data Security Incidents and Customer Privacy
Breach Incidents during Reporting Period CNY10000 0
Solar Energy Consumption tce 90388
Recognition as Specialized and Sophisticated SME Times 2
Hydro Energy Consumption tce 0
Total Number of Employee People 1747
Soil Testing Frequency Times 4
North China Employees People 130
Total GHG Emissions tCO2e 23087
East China Employees People 1076
Scope 1 GHG Emissions tCO2e 2209
South China Employees People 521
Direct (Scope 1) GHG Emissions per Million CNY Revenue tCO2e/Million CNY 1.86
Southwest China Employees People 20
Scope 2 GHG Emissions tCO2e 20878
Child labor found People 0
Indirect (Scope 2) GHG Emissions per Million CNY Revenue tCO2e/Million CNY 17.54
Total GHG Emissions Directly Reduced by Mitigation Measures tCO2e 1594 Forced labor found People 0
Scope 1 GHG Emissions Directly Reduced by Mitigation Measures tCO2e 570 Employees Covered by Collective Bargaining People 1747
Scope 2 GHG Emissions Directly Reduced by Mitigation Measures tCO2e 1023 Male Employees People 1412
107 108Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Indicator Name Indicator Unit 2025 Indicator Name Indicator Unit 2025
Female employees People 335 Safety Education Sessions Times 611
Employees under 30 People 242 Safety Training Participants People 31512
Employees aged 30 to 50 People 1117 Average Safety Education Training per Employee Hours 30.74
Employees over 50 years old People 388 Safety Education Training Coverage Rate % 100
Employees with College Diploma or Below People 1251 Employee Physical Examination Coverage Rate % 100
Employees with Bachelor's Degree People 449 Entities with ISO45001 Certification Times 14
Employees with Master's Degree People 44 Number of Occupational Disease Cases People 0
Employees with Doctoral Degree People 3 Work-related Fatalities Among Employees People 0
Senior Management People 113 Working Days Lost due to Work-related Injuries Days 574
Middle Management People 167 Working Days Lost due to Work-related Injuries Per Million CNY
Revenue Day/Million CNY 0.48
Frontline Employees People 1466
Major Safety Accidents Times 0
Ethnic Minority Employees People 39
Fire Drill Participants Times 3195
New Hires People 143
Hidden Danger Inspection Times 1430
Employee Turnover Rate % 6.28
Hidden Dangers Identified Items 7442
Number of Employee Turnover People 117
Hazard Due Rectification Rate % 98
Labor Contract Signing Rate % 100
Total Suppliers Suppliers 245
Proportion of Employees Paying Social Insurance % 100
Suppliers Terminated for Non-compliance Suppliers 8
Total Number of Employees Taking Parental Leave during the Year People 33
Potential Suppliers Rejected for Non-compliance Suppliers 52
Total Number of Employees Returning to Work after Parental Leave
during Reporting Period People 32 Suppliers Signing Integrity Clauses % 100%
Employee Training Expenditure CNY 10000 212 Needy Employees Assisted per Million CNY Revenue Persons/Million CNY 0.01
Employee Training Coverage % 100 Volunteer Activity Duration Hours 14402
Total Employee Training Sessions Times 874 Average Volunteer Service Hours per Person Hours 114.30
Average Training Hours per Employee Ho u rs 26 Total Charitable and Public Welfare Investment CNY10000 450
Employee Satisfaction % 96 Number of Employee Volunteer Team Members People 126
109 110Annual Sustainability Report
Great River Smart Logistics Co. Ltd.Indicator Index Feedback Form
We appreciate your time in reviewing the 2025 Annual Sustainability Report of Great River Smart Logistics. To continuously improve our
Dimension No. Topic Corresponding Chapter sustainability reporting and management we are keen to hear your comments and suggestions. We kindly invite you to complete the following
Clause feedback form and return it to us via any of the following channels:
1 Climate Change Response Articles 21 to 28 Climate Change Response
Email: grsl@grgroup.cc
2 Pollution Emission Article 30 Pollution Discharge Phone: 0769-88002930
3 Waste Management Article 31 Waste Management Address: 4th Floor Building 1 Songke Yuan No. 4 Libin Road Songshan Lake High-tech
Industrial Development Zone Dongguan City
4 Ecosystem Ecosystem and Biodiversity Conservation Article 32 and Biodiversity Conservation
Environmental
Environmental Compliance Your Information: 5 Environmental Compliance Management Article 33 Management Name: Telephone:
6 Energy Utilization Article 35 Energy Management Employer: Fax:
Title: Email:
7 Water Resource Utilization Article 36 Water Resource Management
8 Circular Economy Article 37 Circular Economy
Questionnaire
9 Rural Revitalization Article 39 Rural Revitalization Multiple Choice Questions: (Please mark “?”in the corresponding box)
How would you rate the extent to which this report reflects Great River Smart Logistics' significant impact on the economy society and
10 Social Contribution Article 40 Social Contribution environment：
□ Excellent □ Good □ Fair □ Poor □ Very poor
11 Innovation-Driven Development Article 42 R&D and Innovation
How would you rate the response and disclosure in this report regarding issues of concern to stakeholders：
12 Technology Ethics Article 43 Technology Ethics □ Excellent □ Good □ Fair □ Poor □ Very poor
13 Supply Chain Security Article 45 Responsible Supply Chain How would you rate the clarity accuracy and completeness of the information indicators and data disclosed in this report
Social
□ Excellent □ Good □ Fair □ Poor □ Very poor
14 Equal Treatment of SMEs Article 46 Equal Treatment of SMEs
How would you rate the readability of this report：
15 Product and Service Safety and Quality Article 47 Product Quality and Safety □ Excellent □ Good □ Fair □ Poor □ Very poor
Data Security and Customer Privacy Data Security and Privacy What is your overall evaluation of this report：16 protection Article 48 protection
□ Excellent □ Good □ Fair □ Poor □ Very poor
17 Employees Article 50 Employee Recruitment and Talent Development
Open-Ended Questions:
18 Due Diligence Article 52 Due Diligence
What suggestions do you have for the ESG work of Great River Smart Logistics
19 Stakeholder Communication Article 53 Stakeholder Communication
Sustainable What valuable ESG information do you think this report provides
Development
20 Anti-Commercial Bribery and Anti- Governance Corruption Article 55 Business Ethics
What additional ESG information do you think should be disclosed in future reports
21 Anti-Unfair Competition Article 56 Anti-Unfair Competition and Anti-Monopoly
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