Environmental Social and
Governance Report
Bestway Marine & Energy Technology Co.LtdTable of Contents
About This Report 01 Environment 30
Chairman's Message 02 Addressing Climate Change 31
Environmental Compliance Management 31
About the BESTWAY 04
Resource Management and Circular Economy 33
Special Topic: Responding to the Sky and 08 Emission Management 36
Expanding to the Sea Contributing to
Climate Resilience
Sustainable Development Governance 18 Social 38
Sustainable Development Strategy 19 Product and Service Safety and Quality 39
BESTWAY ESG Management 20 Customer Service and Management 40
Stakeholder Communication 20 Innovation-Driven 41
Materiality Issue Management 21 Intellectual Property Protection 44
Data Security and Customer Privacy Protection 46
Supply Chain Security 49
Employees 51
Governance 22
Social Contribution 58
Corporate Governance 23 Rural Revitalization 59
Protection of Investor Rights and Interests 25
Compliance Management 26
Business Ethics 28
Report Appendix 60
Key Performance Indicators 60
Indicator Index Table 64
Reader Feedback Form 65Bestway Marine & Energy Technology Co.Ltd
2025 Environmental Social and Governance Report
Report Opening
Report Overview
This report is the first Environmental Social and Governance (ESG) Report published by Bestway Marine & Energy Technology Co.Ltd
(hereinafter referred to as "the BESTWAY" "the Company" or "We"). Adhering to the principles of objectivity standardization transparency
and comprehensiveness this report discloses in detail the specific measures key practices highlight cases and key performance indicators
in actively assuming social responsibility and promoting sustainable development in 2025 aiming to respond to the expectations of
stakeholders and better fulfill social responsibility in the future.Preparation Basis
This report is prepared with reference to the "Shenzhen Stock Exchange Self-regulatory Guidelines for Listed Companies No. 17 – Sustainable
Development Report (Trial)" and "Shenzhen Stock Exchange Self-regulatory Guidelines for Listed Companies No. 3 – Preparation of
Sustainable Development Report" the Global Reporting Initiative's "Universal Standards for Sustainability Reporting (GRI Standards 2021)"
and the "United Nations Sustainable Development Goals" (SDGs). It focuses on reporting the BESTWAY's work in promoting environmental
social and corporate governance aspects. The preparation of this report follows the principles of materiality quantification balance and
consistency.Report Scope
Unless otherwise specified the data contained in this report covers the period from January 1 2025 to December 31 2025 (hereinafter
referred to as "the Reporting Period").The scope of this report is consistent with the scope of the consolidated financial statements in the Company's 2025 annual financial report.Data Sources and Reliability Assurance
All information and data in this report are derived from environmental social and governance information as well as the Company's
financial reports that have been compiled aggregated and reviewed by the Company. Unless otherwise specified all monetary amounts
in this report are denominated in Renminbi (RMB). During the Reporting Period due to adjustments in statistical methods for some data
certain information has been restated. In case of any inconsistency with data in previous reports please refer to this report.The Board of Directors of the Company undertakes that this report contains no false or misleading information and is responsible for the
authenticity accuracy and completeness of its contents.Report Access
This report is published annually. You may download the electronic version of this report from the Shenzhen Stock Exchange website (www.szse.cn) and CNINFO (www.cninfo.com.cn).Contact Information
Address: Building 10 No. 518 Xinzhuan Road Songjiang DistrictShanghai China
Tel: +86-021-60859800
Fax: +86-021-61678123
Email: public@bestwaysh.com
Zip Code: 201612
01Bestway Marine & Energy Technology Co.Ltd
2025 Environmental Social and Governance Report
Chairman's Message
Dear Shareholders Partners Fellow Employees and Friends from All Sectors of Society:
Hello everyone!
As time passes and seasons change we remain steadfast in our commitment. The year 2025 marks a pivotal year for the BESTWAY in
deepening its presence in the three core areas of marine engineering defense equipment and new energy. It is also a year of deepening
the integration of sustainable development concepts into strategic planning and business operations. In this year filled with opportunities
and breakthroughs we officially release our first Environmental Social and Governance (ESG) Report. As a leading private enterprise in ship
design and construction a comprehensive solution provider uniquely integrating ship design and construction in the industry a research
development and manufacturing supplier of special vessels and defense equipment and a new energy comprehensive service operator
we have precisely aligned with the three major goals of "Maritime Power" "Dual Carbon Goals" and "Military Industry Upgrade" consistently
resonating with national strategies to build a solid business structure. We firmly believe that the high-quality development of an enterprise
is inseparable from environmental sustainability social prosperity and modernized governance. This report aims to systematically present
our practices achievements over the past year and our commitments for the future.Driving Green Transformation Protecting the Blue Ocean
We deeply recognize the historical responsibility of the shipbuilding and marine engineering industry in the green transformation and have
translated this into concrete actions to drive technological innovation and production practices.In the field of low-carbon development we focus on the research development and design of new energy vessels. Over the past year we
have completed the design of multiple LNG-powered vessels and methanol-electric hybrid vessels. By optimizing production processes
and promoting clean energy substitution we have achieved a steady decline in carbon emission intensity. Meanwhile the offshore wind
turbine installation platforms we built have been extensively deployed in domestic offshore wind power projects. With excellent construction
craftsmanship and stable equipment performance they have become important equipment support for the advancement of offshore wind
power projects effectively contributing to the development of the offshore wind power industry and providing solid support for the high-
quality advancement of the national clean energy cause.In terms of resource utilization and ecological protection we adhere to refined control throughout the entire process. We strictly implement
environmental protection standards to ensure comprehensive compliant disposal of rainwater exhaust gas and hazardous waste achieving
100% compliant disposal of hazardous waste. We have built a new rainwater purification system where initial rainwater treated through
"filtration screen filtration + sedimentation tank precipitation" is reused without discharge. Meanwhile by engaging third-party service
organizations to conduct cleaner production audits we systematically analyze the production status set priorities and targets for cleaner
production audits effectively reduce pollutant emissions successfully complete the preset targets of cleaner production audits and achieve
a win-win situation for both economic and environmental benefits.Practicing Social Responsibility Creating a
Value Ecosystem Together
The BESTWAY consistently adheres to driving industrial progress through technological innovation. In 2025 the Company continued to
maintain R&D investment with R&D expenditure accounting for 1.12% of operating revenue. We have achieved fruitful results with 47 new
patents and 35 software copyrights added throughout the year. We have achieved key technological breakthroughs in the development
of core products such as large lifting and salvage engineering vessels offshore wind turbine installation platforms AHTS multi-functional
work vessels new energy methanol-electric hybrid multi-purpose vessels large deep-sea farming factory vessels and multi-functional
unmanned vessels. We have also deepened industry-university-research collaboration with institutions such as China Classification Society
Wuhan University of Technology Tianjin University and Shanghai University of Engineering Science driving the proportion of high-tech
products (services) related to these technologies to exceed 90%. In the defense equipment field we successfully completed the acceptance
of 9 military-civilian integration projects providing technical support for the construction of national maritime defense security and
emergency rescue systems.Employees are the cornerstone of enterprise development. We adhere to the corporate vision of "Building the Enterprise with Integrity
Serving the Country through Technology People-oriented and Pursuing Excellence" striving to create a safe healthy and inclusive working
environment for employees and continuously enhancing employees' sense of happiness and belonging. We strictly comply with labor
regulations and effectively safeguard employees' legitimate rights interests and well-being. Through school-enterprise cooperation skills
training and dual-channel promotion mechanisms we have built diverse growth platforms for employees comprehensively carrying out
over 566 employee skills and management training sessions with an employee coverage rate of 87.41%. The Company always prioritizes
employee occupational health and safety achieving annual occupational health and safety management goals through regular employee
physical examinations regular safety production training and fire emergency drills. We actively give back to the community through paired
assistance participation in maritime emergency rescue drills and organizing volunteer services contributing positively to the harmonious
development of the community.
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2025 Environmental Social and Governance Report
Consolidating Corporate Governance Building a Solid
Foundation for Development
In terms of corporate governance we continuously optimize the corporate governance structure
ensuring the scientific and efficient nature of decision-making by improving the functions of the
Board of Directors and various specialized committees and safeguarding the independence of
independent directors. We continuously improve the internal control and compliance system deepen
risk management mechanisms strengthen process control through digital tools prevent operational
risks and adhere to the bottom line of integrity management. By the end of 2025 the BESTWAY's
order backlog exceeded RMB 14.5 billion (including pending effectiveness) with production scheduled
until 2028 rewarding shareholders' trust with stable operating performance. We attach importance
to intellectual property protection and innovation incentives forming a virtuous cycle of "R&D –
Transformation – Protection" injecting core momentum into the sustainable development of the
enterprise.Looking Ahead
This is the Company's first ESG Report serving both as a summary of the past and an expectation for the future.Looking back at 2025 our sustainable development management has achieved phased results but we are also keenly aware that this
remains a systematic project requiring long-term investment and continuous improvement.Looking ahead to 2026 and beyond we will take this report as an opportunity to further integrate ESG concepts into strategic planning and
business operations continuously deepen the green and low-carbon transformation accelerate new energy technology R&D and green
production transformation promote the localization of defense equipment and expand new energy marine application scenarios. We
will continuously improve the ESG governance system and strengthen communication and collaboration with stakeholders. While creating
economic value we will actively fulfill social responsibilities and protect the blue marine ecology.The journey is long and only through hard work can we succeed. We thank all shareholders for their firm trust partners for walking
alongside us fellow employees for their hard work and all sectors of society for their continued attention and support to the BESTWAY. In
the future we will uphold the core values of "Integrity Integration Excellence and Win-Win" with firmer responsibility and more outstanding
technological innovation deeply cultivating the marine economy protecting the green homeland and writing a new chapter in the
coordinated development of the enterprise and society!
Thank you all!
Bestway Marine & Energy Technology Co.Ltd
Chairman: He Xudong
April 2026
03Bestway Marine & Energy Technology Co.Ltd
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About the BESTWAY
Company Profile
Bestway Marine & Energy Technology Co. Ltd was founded in 2001 and listed on the Growth Enterprise Market of Shenzhen Stock Exchange
in 2009 becoming the first listed company in the comprehensive shipbuilding technology sector in China. It is a unique comprehensive
solution provider integrating ship design supervision and construction in the industry an advanced R&D and manufacturing supplier and a
new energy comprehensive service operator. The Company's current main business covers three major business areas: marine engineering
defense equipment and new energy fully leveraging the synergies between platforms. The Company adheres to the development strategy
of "Technology Leadership Integrated R&D and Manufacturing Military-Civilian Integration and Intelligent Green Development" upholds the
vision of "Serving National Strategies and Becoming a Thriving Marine Technology Industry Group" is committed to innovative development
and builds the enterprise's development path with integrity and strength.Development History
Year Event
2001 Bestway Marine & Energy Technology Co.Ltd was founded in 2001
2009 Among the first batch of companies listed on the Growth Enterprise Market of Shenzhen Stock Exchange
2014 Acquired Shanghai Wojin Natural Gas Utilization Co. Ltd.
2015 Acquired Taizhou Jinhaiyun Marine Equipment Co. Ltd. (now renamed Jiangsu Jinhaiyun Technology Co. Ltd.)
2017 Acquired Jiangsu Dajin Heavy Industry Co. Ltd.
2021 Release of the 2021–2025 Five-Year Strategic Plan
2022 Acquisition of Shanghai Changhai Shipping Co. Ltd.
2025 Operating revenue exceeded RMB 4.5 billion and net profit reached RMB 297 million hitting a ten-year high.
Corporate Culture
Corporate Mission
Driven by technology empowering humanity to better explore the oceans
Corporate Vision
Serving national strategies and becoming a thriving marine technology industry group.Corporate Values
Integrity Integration Excellence Win-Win
ESG Development Strategy
* Social Responsibility: Occupational health humanistic care charity and public welfare
* Environmental Responsibility: Practicing ecological civilization pursuing sustainable development reducing social energy
consumption and reducing pollutant emissions
* Low-carbon Innovation: Green energy green design green procurement green manufacturing green logistics green office
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Corporate Culture
* Integrity: The BESTWAY inherits the corporate development vision of "Building the Enterprise with Integrity". To customers
partners employees and the enterprise itself we always adhere to the concept of integrity as the foundation believing
that integrity leads to long-term success.* Integration: The BESTWAY's business layout involves multiple related industries and value fields. Cultural integration
and coordinated development are inevitable requirements for the BESTWAY's strategic coordination and internal
management.* Excellence: The BESTWAY takes "Technology Leadership" as the starting point deeply cultivates its main business
strives for progress establishes benchmark enterprises in the shipbuilding and defense fields and becomes a leader in
industry transformation and development.* Win-Win: The BESTWAY establishes an open cooperation concept fully mobilizes various resources and coordinates
with government agencies industry customers and other parties. Through resource integration and complementary
advantages we achieve win-win results and are committed to building a value-oriented enterprise with good operating
efficiency high employee happiness index and trustworthiness.
2025 BESTWAY Milestones
Date Event
December 18 2025 The 2#1064 TEU container vessel built by subsidiary Jiangsu Dajin Heavy Industry Co. Ltd. ("Dajin Heavy Industry") for H.P.Wegener was successfully delivered.The "Zhanjiang Bay No. 1" built by subsidiary Dajin Heavy Industry for Zhanjiang Bay Laboratory
was successfully delivered. This platform independently developed and designed by Zhanjiang
November 19 2025 Bay Laboratory is the world's first floating dynamic positioning farming platform integrating
multiple functions including offshore semi-submersible farming autonomous navigation for
typhoon avoidance green energy supply and intelligent control.Subsidiary Dajin Heavy Industry successfully signed the EPC contract for a series of 6 vessels of
August 13 2025 65-meter anchor handling tug supply vessels (AHTS) achieving new progress in the offshore
engineering market expansion.The "CRCC Bridge Lifting 2" 1300-ton full-revolving crane vessel carefully built by subsidiary
May 28 2025 Dajin Heavy Industry for China Railway Construction Bridge Engineering Bureau Group Co. Ltd.was successfully delivered at Qingdao Haixi Terminal.Subsidiary Dajin Heavy Industry and China Railway Construction Bridge Engineering Bureau
April 7 2025 Group Co. Ltd. jointly signed the construction contract for the "156-meter Dynamic Positioning
Piling Vessel" at Tianjin CRCC Building.
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Annual Honors
Award/Recognition Image
Shanghai Patent Work Demonstration Unit
The project "Key Technologies and Applications of
Autonomous Navigation for Unmanned Vessels" won the
Second Prize of Technical Invention Award of Shanghai
Science and Technology Award
Selected in the 2025 Songjiang District Enterprise
Technology Center Recognition List
Selected in Shanghai Top 100 Manufacturing Enterprises
(65th) Shanghai Top 100 Private Enterprises (92nd)
Shanghai Top 100 Private Manufacturing Enterprises (38th)
and Shanghai Top 100 Emerging Industries (54th)
2025 Shanghai Design "Design 100+" Global Competition
TOP 100 Project
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Award/Recognition Image[1
Ship Design Unit Design Condition Evaluation "General
Ship Design Unit (Grade A)" and "Fishing Vessel Design Unit
(Grade A)"
2024 Shanghai Design 100+ Global Competition
High-tech Enterprise
Shanghai Jiahou Ship and Ocean Engineering Research and
Design Co. Ltd. Shanghai Jiachuan Engineering Supervision
Development Co. Ltd. Jiangsu Jinhaiyun Technology Co.Ltd. Jiangsu Dajin Heavy Industry Co. Ltd. Jiangsu Jiamei
Offshore Engineering Equipment Co. Ltd. Jiangsu Chuanhai
Engineering Design Research Institute Co. Ltd.Data Sharing Ecosystem Construction Application Unit
Specialized Refined Characteristic and Innovative SMEs
Bestway Marine & Energy Technology Co.Ltd Shanghai
Jiahou Ship and Ocean Engineering Research and Design
Co. Ltd. Jiangsu Jinhaiyun Technology Co. Ltd. Jiangsu
Dajin Heavy Industry Co. Ltd.National Specialized Refined Characteristic and Innovative
"Little Giant" Enterprise
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Special Topic: Responding to the Sky
and Expanding to the Sea Contributing
to Climate Resilience
Against the backdrop of increasingly severe global climate change challenges climate resilience has become a core indicator for measuring
the sustainable development capabilities of society economy and enterprises. Climate resilience includes not only the "response" capability
to extreme weather events but also emphasizes the "adaptation" practices accompanying climate change and encompasses "mitigation"
actions to reduce greenhouse gas emissions to slow down the climate change process.Climate Resilience Strategy Across All Businesses
Based on its business layout the BESTWAY fully integrates into the urgent global climate change situation. By strengthening the adaptive
application of defense equipment in disaster response and rescue it enhances society's ability to cope with extreme weather. At the same
time it deeply promotes the participation of marine engineering business in deep-sea exploration and development providing suitable
equipment for China's marine economy development and helping China adapt to the land economic transformation brought about by
climate change. At the industry level it actively participates in green ship innovation focusing on developing more practical new energy
vessels exploring application scenarios for new energy vessels and promoting necessary actions by the industry to mitigate the climate
process.BESTWAY's Climate Resilience Contribution Strategy
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Developing Defense Equipment to Address Extreme Weather Challenges
Climate change has significantly increased the frequency and intensity of extreme weather events worldwide posing serious threats to
social infrastructure economic activities and people's lives and property. Through the development of defense equipment business the
BESTWAY implements military-civilian integration and carries out transformation in the field of civil disaster prevention and mitigation
providing suitable equipment for the improvement of society's disaster prevention and mitigation capabilities enhancing community
climate resilience and addressing the short-term damage caused by extreme weather.BESTWAY's Path to Helping Communities Address Extreme Weather Challenges
Case: Assisting Heilongjiang Flood Rescue Operations
In August 2023 affected by the combined impact of Typhoons "Doksuri"
and "Khanun" Heilongjiang Province experienced continuous heavy
rainfall with severe flooding disasters occurring in many places making
flood fighting and rescue operations extremely challenging. The BESTWAY
responded quickly and subsidiary Jinhaiyun urgently mobilized 10 assault
boats 7 rubber boats and 5 outboard motors and other emergency
rescue equipment worth RMB 445000 which were delivered to Harbin
within 40 hours of non-stop travel day and night and dispatched
professional technical personnel to provide operational guidance. This
assistance provided urgently needed water rescue equipment to the
disaster-stricken areas effectively enhancing local flood fighting and
rescue capabilities and contributing significantly to flood prevention and
emergency rescue operations.[
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Case: Airdrop Lifeboat Technology Breakthrough
Facing the challenges of high timeliness requirements for water emergency rescue and limitations of traditional rescue
methods by site and distance the BESTWAY carried out key core technology breakthroughs for airdrop emergency rescue
boats. This equipment can be airdropped by helicopters or fixed-wing aircraft automatically inflates and rights itself
upon water entry and can be airdropped with self-contained power and fuel suitable for water rescue. The Jiangsu
Province Industrial and Information Technology Transformation and Upgrading Special Fund Project "Key Core Technology
Breakthrough and Equipment Development for Airdrop Emergency Rescue Boats" in which the Company participated has
completed acceptance achieving technological breakthroughs. This equipment improves emergency rescue response speed
and success rate in complex environments providing a new technical means for water rescue.Case: Development of Intelligent Unmanned Search and Rescue Platform
Addressing the challenges of high difficulty and risk in personnel search and rescue under severe sea conditions the
BESTWAY has developed a highly maneuverable unmanned autonomous intelligent search and rescue platform for severe
sea conditions. This platform has functions such as autonomous navigation intelligent obstacle avoidance and target
recognition and can perform search and rescue missions under severe weather conditions reducing the risk to rescue
personnel. The key demonstration project of the military-civilian integration development special fund in which the Company
participated has completed acceptance and the intelligent search and rescue unmanned vessel product won the Science
and Technology Award of Jiangsu Military Industry Society. The application of this platform improves the intelligence level and
operational safety of maritime emergency rescue providing advanced equipment support for building a modern maritime
search and rescue system.
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Advancing marine and offshore engineering to harness climate
transition opportunities.Climate change is profoundly affecting the economic and social stability of coastal regions. Against this backdrop expanding industries
into the more stable and resource-abundant deep sea is not only an economic choice to pursue new growth drivers but also a forward-
looking climate adaptation strategy. Through its marine and offshore engineering business Tianhai Defense enhances China's maritime
infrastructure capabilities deep-sea support capabilities and development assurance capabilities. By providing market resilience and
technological resilience for deep-sea economic operations and the deployment scenarios of deep-sea equipment the company helps
China address the medium-term structural challenges of economic resource scarcity induced by climate change.Tianhai Defense’s Engagement in National Economic Transition Pathways
Driven by Climate Change
Case: Developing Deep-Sea Operational Equipment to Safeguard Deep-Sea Infrastructure
China's deep-sea oil and gas fields submarine data centers and other infrastructure are facing increasing threats from
geological activities and extreme weather events induced by climate change. In response Tianhai Defense has designed
and constructed specialized vessels including the "Shenda Hao" new-generation deep-diving working mother ship and
a 300-meter saturation diving support vessel. These are equipped with a dual-bell 24-person saturation diving system a
3000-meter-class ROV and a 400-ton wave compensation crane. Featuring DP3 dynamic positioning capability the vessels
enable all-weather installation inspection maintenance and emergency response ensuring stable operations even in harsh
sea conditions. This effectively safeguards national energy and information security while enhancing the resilience and risk
resistance of deep-sea infrastructure.
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Case: Designing and Building Wind Power Platforms to Support Green Energy
As offshore wind power transitions to deeper waters there is a growing need for platforms capable of accommodating large
wind turbines of 15 MW or more leading to increasingly stringent requirements for installation platforms. Tianhai Defense
has developed a series of 1600–2500-ton self-elevating wind turbine installation platforms. By optimizing the leg design and
integrating intelligent route planning and energy management systems these platforms effectively facilitate the transition of
wind farms from nearshore to offshore waters enhancing installation efficiency and safety. They enable the efficient utilization
of high-quality wind energy support the achievement of the “dual carbon” goals foster a diversified energy structure and
strengthen the resilience of the national energy system.Case: Building the “Zhanjiang Bay No. 1” to Pioneering Offshore Aquaculture
Traditional nearshore marine aquaculture faces increasing threats from marine disasters such as typhoons and red tides
caused by climate change as well as spatial constraints creating an urgent need to expand into offshore waters. Tianhai
Defense has developed the world’s first floating dynamic positioning net pen workboat the “Zhanjiang Bay No. 1.” With a
total length of 154 meters and a width of 44 meters it holds 80000 cubic meters of aquaculture water and produces 2000
tons of premium fish annually. The vessel integrates dynamic positioning and autonomous navigation systems enabling it to
proactively avoid extreme weather conditions such as typhoons shifting from passive risk mitigation to active risk avoidance;
simultaneously it is equipped with a three-dimensional communication network spanning air land sea and space along
with a full-process intelligent management and control system enabling precision aquaculture; furthermore it utilizes
complementary clean energy sources—photovoltaic and vertical-axis wind power—along with HPDE fully transparent netting
achieving low-carbon circular operations. This platform effectively drives the transition of marine aquaculture from nearshore
to deep-sea areas enhancing the climate resilience and risk-resistance capabilities of national food security and the marine
economy.
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Develop innovative low-carbon ships to mitigate climate change
The shipping industry is the lifeline of global trade but it is also one of the major sources of greenhouse gas emissions. As a key player in
the industry chain Tianhai Defense actively collaborates with upstream and downstream enterprises and the shipping industry to pursue
low-carbon and sustainable development. By designing and building low-carbon environmentally friendly vessels the company provides
regulatory resilience to help the industry align with emission reduction trends and operational resilience to support coordinated emission
reductions across the industry chain thereby helping to mitigate the long-term effects of climate change caused by greenhouse gases.Tianhai Defense’s Pathway to Supporting Climate Mitigation Actions
Case: Launching New Energy Refueling Services for Vessels
As the International Maritime Organization (IMO) imposes increasingly stringent carbon emission regulations the number of vessels
using clean fuels such as LNG and methanol is growing rapidly. However the lack of supporting refueling infrastructure has become
a key bottleneck hindering the industry’s low-carbon transition. The Maritime Services Division of Tianhai Defense focuses on LNG
and methanol bunkering services for vessels utilizing a tanker-to-ship bunkering model to ensure a supply of clean fuel for dual-
fuel vessels. In September 2025 the team completed the bunkering of 886 tons of LNG for the “Phoenix” setting a new company
record for the largest single-vessel LNG bunkering volume; In December of the same year the team completed the methanol
bunkering for Changsheng Group’s first 5900 TEU methanol-dual-fuel container ship bunkering 1200 tons in a single operation—
setting a new domestic record for methanol bunkering from a tanker truck to a vessel in a single transaction while ensuring
the entire process was safe efficient and zero-emission. Furthermore the team obtained ISO Triple Certification established a
standardized management system covering the entire refueling business chain and signed strategic cooperation agreements
with upstream and downstream enterprises to build an ecological platform for green energy refueling for ships. The launch of this
business provides shipping companies with reliable clean fuel supply assurance effectively addresses infrastructure bottlenecks in
the application of alternative fuels and helps the shipping industry comply with increasingly stringent environmental regulations.
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Case: Development of Methanol-Dual-Fuel Carriers
With the International Maritime Organization (IMO) tightening its carbon emissions regulations and the imminent
implementation of a carbon tax in Europe the shipping industry faces immense pressure to reduce emissions. Methanol
as a low-carbon alternative fuel has garnered significant attention. Tianhai Defense is actively engaged in the research
development and design of methanol-diesel hybrid and methanol-diesel-battery hybrid tankers and bulk carriers. The
company’s current portfolio includes design and construction contracts for methanol-fueled and methanol dual-fuel tankers.Methanol fuel enables significant emissions reductions is relatively convenient to store and transport and offers good
economic viability. The development of this vessel type provides shipping companies with a solution that balances emissions
reduction targets with operational costs helping the industry meet increasingly stringent environmental regulations.Case: Promoting the Adoption of LNG-Powered Vessels
The green transition of the shipping industry is imminent. As a mature clean alternative fuel with relatively well-developed
technology LNG is one of the most viable emission reduction solutions at this stage. Tianhai Defense leads the field in LNG-
powered vessel technology having designed the world’s first LNG-powered harbor tug and Asia’s first LNG-only harbor
tug. Its affiliated shipyards have a track record of building nearly 70 LNG-powered vessels. The company’s technological
achievements in LNG-powered vessels have been applied to the R&D of new vessel types for offshore oilfield support vessels
at companies such as CNOOC Services and Sinopec helping to build the world’s largest fleet of clean energy platform
supply support vessels. LNG-powered vessels can reduce emissions of sulfur oxides nitrogen oxides and particulate matter
providing a mature and reliable technical pathway for the green transition of coastal and inland waterway shipping.
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Case: Design of a Sail-Battery Hybrid General Cargo Ship
Emissions control areas such as the North Sea and the Baltic Sea in Northern Europe are imposing increasingly stringent
limits on nitrogen oxides sulfur oxides and carbon dioxide emissions from ships placing traditional propulsion vessels
under severe compliance pressure. Tianhai Defense has designed a 13000-ton self-unloading general cargo ship that
integrates a rotary sail auxiliary propulsion system with a 24000 kWh battery pack enabling hybrid propulsion using both
fuel and battery power. In all-electric mode the vessel achieves zero emissions of nitrogen oxides sulfur oxides and carbon
dioxide; the rotary sail further reduces fuel consumption and carbon emissions by harnessing the favorable wind conditions
in Northern European waters. Additionally the main engine meets Tier III emission standards and the vessel is equipped with
a rudder ball energy-saving device and a shore power system. The construction of this vessel type provides a green solution
that balances efficient operations with low-carbon emissions for routes in high-latitude emission control areas helping the
shipping industry address increasingly stringent environmental regulations.Case: Construction of a 1064 TEU Open-Deck Container Ship
With increasingly stringent emission requirements in the Nordic Emission Control Area traditional container ships must
balance loading/unloading efficiency with environmental compliance. Tianhai Defense designed and built a 1064 TEU open-
deck container ship featuring a deckhouse-free open-deck design to enhance loading/unloading efficiency; equipped with
a MAN methanol-pre-installed main engine shaft-driven generator controllable pitch propeller and rudders with trim tabs
to meet EEDI 3 and IMO Tier III emission standards; and fitted with a waste heat recovery system and shore power to achieve
zero emissions in port. Upon future conversion to methanol fuel it will help establish a “green transport corridor” in Northern
Europe. This vessel provides an efficient and green solution for European feeder shipping assisting shipowners in addressing
the Carbon Intensity Indicator (CII) and the Fit for 55 policy.
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Case: Research and Technology Development for Hydrogen- and Ammonia-Powered Vessels
As the “dual carbon” goals advance hydrogen and ammonia—as ultimate zero-carbon alternative energy sources—represent
the inevitable choice for the shipping industry to achieve deep decarbonization making the development of relevant
technologies of critical importance. Tianhai Defense is actively conducting research on hydrogen- and ammonia-powered
vessels delving into the technical characteristics configurations and market status of ammonia-fueled engines and supply
systems. This has led to the development of recommended configurations for ammonia-powered systems providing a solid
technical foundation for the company’s future design and development of ammonia-fueled vessel models. These forward-
looking technological reserves lay the foundation for the company to secure a leading position in future green ship technology
and contribute to the realization of the nation’s “dual carbon” strategic goals.Case: Development of a 300-TEU Smart Container Ship
The intelligent transformation of the shipping industry is a key pathway to improving operational efficiency and reducing
energy consumption and smart navigation technology represents the future direction of development. The “Zhifei” a 300-
TEU smart container ship developed and designed by Tianhai Defense has successfully been converted into China’s first cargo
ship serving as an unmanned maritime test platform marking China’s position among the global leaders in the research
development and application of smart navigation technology. Equipped with an advanced autonomous navigation system
an intelligent collision avoidance system and an energy management system the vessel enables route optimization reduced
fuel consumption and enhanced safety performance. The application of smart ship technology not only improves shipping
efficiency but also reduces energy consumption and emissions through optimized routes and operational strategies setting a
benchmark for the intelligent development of the shipping industry.
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Case: Developing Intelligent Ship Systems to Enhance Shipping Energy Efficiency
The intelligent transformation of the shipping industry is a key pathway to improving operational efficiency and reducing
energy consumption. However challenges such as the difficulty of integrating multi-source heterogeneous ship data
and the lack of real-time monitoring of equipment health have hindered the potential for energy efficiency optimization.Shanghai Jinhailong Intelligent Technology Co. Ltd. a subsidiary of Tianhai Defense specializes in the R&D of intelligent
ship technologies. The company has launched the INF Data Infrastructure Platform which enables the unified collection and
standardized integration of data from multiple systems—including navigation engine room and energy efficiency—while
supporting real-time synchronization with shore-based systems and secure data storage. The company has also developed
the MHM (Mechanical Health Monitoring) system and the SHM (Structural Health Monitoring) system to assess the condition
of and provide early warning for faults in critical components such as main propulsion equipment generator sets pylons
and the hull thereby assisting maintenance decision-making and reducing operational energy consumption. The company
also provides intelligent integration platforms and intelligent navigation systems to optimize routes and enable autonomous
collision avoidance thereby reducing fuel consumption; its water cannon tracking and feedback system can accurately
identify targets enhancing operational efficiency. The application of this series of intelligent products optimizes vessel
operational efficiency through data-driven approaches helping the shipping industry achieve coordinated development
toward digitalization and low-carbon operations.Case: Building a Green and Smart Demonstration Vessel for Inland Waterways
The transition toward green and smart inland waterway shipping requires demonstration projects to lead the way driving the
improvement of industry standards and large-scale adoption. Tianhai Defense has signed a contract with Changhang Freight
for the design and construction of a 7500-ton green and smart demonstration vessel. This LNG dual-fuel green and smart
vessel is primarily intended for cargo transport on the Yangtze River mainstem. As a new energy demonstration project under
the Ministry of Industry and Information Technology it represents the most advanced direction for the development of Yangtze
River shipping. The demonstration vessel integrates multiple advanced technologies including LNG dual-fuel propulsion
intelligent navigation and energy efficiency management significantly reducing emissions while improving transport
efficiency. The implementation of this project provides a model for the green and intelligent transformation of inland waterway
vessels driving the entire industry toward low-carbon and high-efficiency transformation and upgrading.
1701
Sustainable Development Governance
Aligned with the United Nations Sustainable Development Goals
Key Issues
* Sustainable Development Management
* Stakeholder communicationBestway Marine & Energy Technology Co.Ltd
2025 Environmental Social and Governance Report
Sustainable Development Strategy
The BESTWAY deeply recognizes that sustainable development is the core path for enterprises to achieve long-term value creation and
social responsibility. Centered on the development tenet of "Technology Leadership Integrated R&D and Manufacturing Military-Civilian
Integration and Intelligent Green Development" the Company continues to develop its three major businesses of marine engineering
defense equipment and new energy with the goal of serving the national maritime power strategy in the new era implementing deep-
sea technology development and developing new quality productive forces building a forward-looking and systematic sustainable
development strategy.Sustainable Development Potential
Marine Engineering: Contributing to Maritime Power Construction
As the Company's traditional core business marine engineering is oriented toward "Intelligent Green Development" focusing on the R&D
of high-tech high-value-added vessel types and EPC general contracting capability building. Through continuous technology R&D and
product structure optimization it promotes the development of green ships and intelligent ships enhances China's independent innovation
capability in marine equipment and serves the national maritime power strategy.Defense Equipment: Deepening Military-Civilian Integration
Defense equipment as a strategically important business relies on flexible mechanisms and industrial chain synergy advantages focusing
on intelligent unmanned vessels special defense equipment and other fields to create differentiated competitive advantages. Through the
strategy of "Precise Positioning Differentiation Technology Focus and Production Excellence" it promotes the deep integration of military
technology with civilian industries enhances the independent support capability of national defense equipment and serves the national
security strategy.New Energy: Layout of New Low-Carbon Transportation Track
New energy as a strategically important business practices the concept of "Design Leading Construction" focusing on the R&D of marine
core equipment and system integration laying out the application of new energy technology and intelligence in the shipbuilding field
creating a new category of cross-border integrated water cultural tourism products and promoting low-carbon transformation in the
transportation field. Through coordinated development with the marine engineering and defense equipment sectors it gradually builds a
comprehensive clean energy utilization and service platform contributing to the achievement of "Dual Carbon" goals.Sustainable Development Path
Integrated Development Path
With the "Three Major Sectors" as the core the Company strengthens business synergy and resource sharing promotes deep integration of
marine engineering defense equipment and new energy in dimensions such as technology market and customers builds an efficient and
coordinated industrial ecosystem and enhances overall risk resistance and comprehensive competitiveness.Low-Carbon Transformation Path
The Company implements green and low-carbon development concepts continuously promotes the R&D and application of green ships
clean energy equipment and energy-saving technologies optimizes energy structure and operation models promotes green upgrading of
the entire industrial chain and contributes to the low-carbon transformation of the transportation and marine equipment industries.Intelligent Upgrading Path
The Company empowers traditional industries with intelligence focusing on key areas such as intelligent unmanned vessels intelligent
ships and intelligent control systems promoting digital and intelligent upgrading of the entire process of design manufacturing and
operation enhancing product added value and service efficiency and strengthening the endogenous momentum for sustainable
development.
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BESTWAY ESG Management
The BESTWAY deeply integrates ESG concepts into corporate strategy and daily operations establishing a three-tier ESG working mechanism
of "Decision-Making – Management – Execution" to ensure that ESG work is implemented at all levels and operates effectively.ESG Working Mechanism
Level Specific Responsibilities
Decision-Making Level Responsible for reviewing ESG strategies supervising major ESG risks and opportunities and regularly listening to management reports.Led by the Securities and Investment Center with the participation of heads of various
Management Level business sectors and centers (departments/offices) coordinating and promoting the
advancement and implementation of ESG work.Execution Level Various centers (departments/offices) and business units are responsible for daily ESG data collection measure implementation and feedback on improvement suggestions.Stakeholder Communication
The BESTWAY attaches great importance to communication and cooperation with stakeholders viewing it as an important foundation for
promoting sustainable development. Based on the characteristics and concerns of various stakeholders the Company has established
diversified communication channels and feedback mechanisms. By proactively disclosing development dynamics and dynamically receiving
opinions from all parties it accurately identifies key demands comprehensively understands related expectations precisely responds to
various concerns and continuously enhances the transparency and effectiveness of communication.Communication Channels for Stakeholders in Maritime and Air Defense
Stakeholder Expectations and Demands Response and Communication Methods
* Sustained growth in operating performance * Shareholders' meetings
* Open and transparent corporate information * Company announcements and periodic
Shareholders/Investors * Protection of shareholder rights and interests reports
* Standardized corporate governance * Performance briefings
* Risk prevention * Visits/telephone/written communication
* Tax payment in accordance with law
* Employment creation * Information disclosure
Government and Regulators * Compliant operation * Daily communication and reporting
* Promoting economic development * Cooperation with regulatory inspections
* Assuming social responsibility * Participation in government research activities
* Maintaining long-term good cooperation
* Providing quality products and services
Customers * Honest transactions
* Customer consultation and complaints
* Protecting customers' legitimate rights and * Customer satisfaction surveys* Industry exhibitionsinterests
* Product quality and service management
* Protection of employee rights and benefits
* Sound career development channels * Employee meetingsEmployees * Smooth communication channels * Employee activities
* occupational health and safety * Employee training
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Stakeholder Expectations and Demands Response and Communication Methods
* Maintaining long-term good cooperation
Suppliers * Fair and transparent procurement * On-site research* Clean procurement * Supplier audits
* Compliance with business ethics
* Mutual benefit and win-win
Industry Partners * Smooth communication channels * Actively engaging in association activities
* Promoting industry development * Participating in industry exhibitions
Caring about and supporting community * Charitable donations
Community * * Participation in volunteer public welfare development services
Materiality Issue Management
The BESTWAY systematically carries out annual materiality issue identification work by combining disclosure standards market concerns
and the characteristics of its industry and business operations. In 2025 the Company implemented impact and financial materiality
analysis of issues in accordance with the "Shenzhen Stock Exchange Self-regulatory Guidelines for Listed Companies No. 17 – Sustainable
Development Report (Trial)".Key Performance:
* Identified 22 materiality issues.* Identified 5 issues with high double materiality.financial materiality
Double Materiality Issue Matrix
21
mpact materiality02
Governance
Aligned with the United Nations Sustainable Development Goals
Key Issues：
Due Diligence
Stakeholder communication
Anti-Bribery and Anti-Corruption
Anti-Unfair Competition
Equal Treatment of SMEs GBestway Marine & Energy Technology Co.Ltd
2025 Environmental Social and Governance Report
Corporate Governance
The BESTWAY adheres to the development philosophy of standardization transparency and stability and regards improving the corporate
governance system as an important guarantee for achieving high-quality development. The Company continuously optimizes the
governance structure clarifies the boundaries of decision-making execution and supervision responsibilities strengthens institutional
construction and operating mechanisms improves governance efficiency and risk prevention and control capabilities and provides support
for the Company's stable operation and long-term value creation.Corporate Governance Structure
The BESTWAY always regards standardized governance as the fundamental guarantee for high-quality development and sustainable
operation. Strictly in accordance with the requirements of the "Company Law" "Securities Law" "Corporate Governance Code for Listed
Companies" and relevant rules of the Growth Enterprise Market of Shenzhen Stock Exchange the Company continuously improves its
corporate governance structure and builds a governance system with clear responsibilities standardized operations and mutual checks
and balances. The Company has formed a governance structure consisting of the shareholders' meeting the board of directors and the
management continuously improving governance transparency and operational efficiency by clarifying authority boundaries and decision-
making processes providing institutional guarantees for the Company's stable operation and long-term value creation.Maritime Defense Governance Mechanism
Shareholders' Meeting Exercise decision-making power over major company matters in accordance with law.Board of Directors As the core strategic decision-making body of the Company it makes decisions on the Company's overall development direction and major business matters.Management Responsible for implementing board resolutions implementing business management objectives and ensuring effective implementation of strategies.
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Operation of the Two Meetings
Shareholders' Meeting
The Company attaches importance to the protection of shareholders' legitimate rights and interests adheres to the principles of openness
fairness and justice and ensures that the decision-making process for major matters is transparent standardized and traceable. We have
formulated and implemented the "Rules of Procedure for Shareholders' Meetings" and "Related Party Transaction Decision-making System"
and other systems clarifying the decision-making authority of shareholders' meetings in matters such as election of directors profit
distribution major asset transactions guarantees and financial assistance changes in raised funds and equity incentives distinguishing
the voting standards for ordinary resolutions and special resolutions and ensuring that major matters go through corresponding review
procedures in accordance with law.Key Performance:
* During the Reporting Period the BESTWAY held 3 shareholders' meetings with a 100% attendance rate of directors at shareholders'
meetings and all relevant resolution matters fulfilled information disclosure obligations in accordance with regulations.Board of Directors
The Company's Board of Directors as the core body for business decision-making and supervision operates in a standardized manner under
the framework of the "Rules of Procedure for Board of Directors". The Board has established an Audit Committee a Strategy Committee a
Nomination Committee and a Remuneration and Assessment Committee. Each specialized committee conducts preliminary research and
professional deliberation in accordance with corresponding implementation rules to support board decision-making. We have established a
Board Secretary and formulated and implemented the "Board Secretary Work Rules" as the daily affairs officer of the Board and the designated
contact person between the Company and regulators responsible for meeting preparation meeting minutes information disclosure
coordination and regulatory communication ensuring that board decision-making procedures are compliant and orderly.Key Performance:
* During the Reporting Period the BESTWAY held 9 board meetings with 43 resolution matters and no violations of board decision-
making procedures occurred.Board Construction
The Company continuously optimizes the board structure and performance guarantee mechanism strengthens professionalism and
independence and enhances the overall governance capability of the Board. We have formulated and implemented the "Independent
Director System" "Implementation Rules for Cumulative Voting in Director Election" "Director and Senior Management Departure
Management System" and other systems covering key governance links such as director appointment independence management
structure optimization and departure standardization forming a relatively complete board construction system.Board Performance Mechanism:
* Implement cumulative voting system in director elections to protect the participation rights of minority shareholders in director
nomination and election;
* Establish independent director independence review and annual assessment mechanisms clarify special powers of independent
directors and ensure their independent judgment in related party transactions and major matters;
* The Nomination Committee reviews the qualifications of director candidates to ensure compliance with relevant laws regulations and
appointment conditions;
* Establish a director and senior management departure management mechanism standardize resignation dismissal and departure
handover procedures clarify fiduciary duties confidentiality obligations and share lock-up obligations and ensure governance
continuity.Key Performance:
* During the Reporting Period the BESTWAY Board had 9 members including 2 female directors accounting for 22.22% and 3 independent
directors accounting for 33.33%
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Director and Senior Management Performance Assessment
The Company has established a director and senior management performance evaluation and incentive and restraint mechanism
formulated and implemented the "Performance Assessment Measures for Senior Management Team of the Company" established an
assessment system combining performance orientation management effectiveness and capability evaluation and linked compensation
arrangements with business results and responsibility fulfillment. We implement a two-dimensional assessment of organizational
performance and comprehensive capabilities for the senior management team and use the assessment results as an important basis for
performance compensation distribution position adjustment and appointment and removal.Performance Assessment Mechanism:
* Year-end performance bonuses are linked to the excess completion of annual net profit implementing a step-by-step accrual
mechanism to strengthen long-term performance orientation;
* A penalty mechanism is set up when minimum targets are not met to strengthen business responsibility constraints;
* Performance results are linked to position appointment and removal compensation structure adjustment and training and
development arrangements.Protection of Investor Rights and
Interests
Investor Relations Management
The BESTWAY attaches importance to continuous communication and information exchange with investors incorporating investor relations
management into the daily business management system. The Company has formulated and implemented the "Investor Relations
Management System" with the Board Secretary coordinating investor relations management and the Securities and Investment Center
serving as the dedicated department for specific implementation. We adhere to the principles of compliance equality proactivity and
honesty and trustworthiness strengthening two-way communication with investors on the basis of fulfilling information disclosure
obligations in accordance with law and promoting the formation of a long-term stable interactive relationship between the Company and
investors.Investor Communication Mechanism:
* Conduct communication through multiple channels including the Company's official website Shenzhen Stock Exchange Interactive Easy
platform telephone email investor briefings roadshows and on-site reception;
* Establish an investor briefing mechanism to promptly hold briefings in response to investor concerns when performance is disclosed
major matters occur or market attention is high;
* Strengthen Interactive Easy platform management promptly reply to investor questions about disclosed information and organize and
publicly release important questions;
* Categorize and preserve activity records Q&A content and related materials to ensure traceability of communication activities.Key Performance:
* During the Reporting Period the BESTWAY organized 3 performance briefings received 3 on-site investor research visits received 21
investors for on-site research answered 110 investor questions with an investor question response rate of 96.49%.
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Information Disclosure Management
The Company strictly complies with relevant laws and regulations and has established and implemented a series of systems including
the "Information Disclosure Management System" "Information Disclosure Deferral and Exemption Management Measures" and "External
Information Reporting Management System" comprehensively covering information generation review disclosure deferral and exemption
external reporting and accountability ensuring that information disclosure is true accurate complete timely and fair. We clearly designate
the Board Secretary as the person responsible for information disclosure work coordinating information disclosure affairs and regulatory
communication forming a disclosure management mechanism with clear responsibilities and standardized processes.Key Performance：
* In 2025 the BESTWAY disclosed 4 periodic reports and 91 interim reports externally with no administrative penalties for information
disclosure violations.Compliance Management
The BESTWAY adheres to lawful and compliant operation continuously improving a compliance management system covering the
entire process of decision-making execution and supervision. By improving internal control mechanisms building risk control matrices
strengthening supervision inspection and rectification closed-loops and combining with special training to enhance the performance
capabilities of key personnel the Company enhances risk identification prevention and response capabilities promotes the integration
of system implementation and compliance awareness and consolidates the foundation for the Company's standardized operation and
sustainable and healthy development.Internal Control System Construction
The BESTWAY continuously improves its internal control system establishing and implementing the "Internal Control System" forming an
internal control operating mechanism coordinated by the Board of Directors supervised by the Audit Committee and executed by the
internal audit department. The Company's internal control covers the entire operation and management process of the Company and its
controlled subsidiaries ensuring the stable operation of the internal control system through division of responsibilities supervision and
inspection and continuous improvement mechanisms.Internal control mechanisms
Bears ultimate responsibility for the establishment and effective implementation of the internal
control system reviews the annual internal control self-assessment report urges management
Board of Directors to implement rectification measures and supervises significant internal control deficiencies and
improvement situations ensuring that major company decision-making complies with laws
regulations and internal authorization management requirements.Supervises and inspects the operation of internal control reviews financial reports and internal
Audit Committee control related matters listens to work reports from the internal audit department provides opinions on internal control self-assessment results and reports relevant situations to the Board of Directors
playing a professional supervision role.Carries out internal audits and special inspection work according to the annual audit plan
Internal Audit Department supervises and evaluates key areas such as financial management fund use and project execution and reports audit results to the Audit Committee; proposes rectification suggestions for identified
issues and tracks implementation promoting the formation of a rectification closed-loop.
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Key Performance：
* During the Reporting Period the BESTWAY held 7 Audit Committee meetings.Risk Control Management
The BESTWAY has established and operates a risk control matrix management mechanism embedding risk identification risk assessment
and control measures into the entire business management process forming a risk control system covering the headquarters and various
business divisions. The Company's risk control matrix systematically organizes key risk points control objectives control measures and
responsible departments around key areas such as strategic decision-making investment management guarantee business related
party transactions contract management information systems securities affairs and internal supervision achieving risk identifiability
controllability and traceability. At the same time we dynamically update the risk control matrix in response to changes in business structure
and regulatory requirements and link it with internal audit supervision and rectification tracking mechanisms promoting risk management
from "post-event correction" to "pre-event prevention and process control".Key Performance：
* During the Reporting Period the BESTWAY completed 37 risk control matrices for the headquarters Marine Industry Division Defense
Special Equipment Division and Energy Industry Division.Compliance Culture Construction
The BESTWAY integrates compliance concepts into the entire governance operation process continuously strengthening the compliance
awareness and responsibility awareness of directors supervisors and senior management through special training case warnings and
performance standard publicity. During the Reporting Period the Company organized special training and exchanges on topics such as
standardized operation of listed companies information disclosure management related party transaction review insider information
management and responsibilities of directors supervisors and senior management combined with typical regulatory cases to carry out
risk warning education promoting "case-driven reform and case-driven governance" continuously improving the ability of key minorities to
perform their duties in accordance with law and risk prevention capabilities.Case: Training on “Standardized Operations of Listed Companies and Performance Standards for DirectorsSupervisors and Senior Management”Tianhai Defense organized a specialized training session on “Standardized Operations of Listed Companies and CorporateGovernance.” Focusing on regulatory rules such as the “Stock Listing Rules” the “Guidelines for Corporate Governance ofListed Companies” and the self-regulatory guidelines for the Growth Enterprise Market (GEM) the session systematically
reviewed criteria for identifying related-party transactions principles for cumulative calculation requirements for recusal from
voting and standards for deliberation and disclosure. The training also included explanations based on regulatory penalty
cases to enhance employees’ understanding and ability to apply the “substance over form” principle.Training on “Regulations on the Standardized Operations of Listed Companies and the Performance ofDuties by Directors Supervisors and Senior Management”
27Bestway Marine & Energy Technology Co.Ltd
2025 Environmental Social and Governance ReportCase: Training on “Best Practices in the Standardized Operationsand Corporate Governance of Listed Companies”
Tianhai Defense conducted specialized training centered on the five principles of information disclosure—truthfulness
accuracy completeness timeliness and fairness. By incorporating real-world regulatory cases involving false statements
material omissions misleading statements and insider trading the company provided risk warnings to enhance the senior
management team’s understanding of their compliance responsibilities and the legal consequences of non-compliance. Thisinitiative aims to foster a governance culture characterized by “law-based decision-making compliant performance of dutiesand prudent disclosure.”
Training: Standardized Operations and Corporate Governance for Listed Companies
Business Ethics
The BESTWAY adheres to honest operation and standardized operation integrating business ethics requirements into the entire process
of business management and business cooperation continuously strengthening anti-bribery anti-corruption and fair competition
management mechanisms and maintaining an open transparent standardized and orderly market environment. At the same time the
Company insists on treating all types of partners equally protecting the legitimate rights and interests of SMEs in business cooperation and
continuously enhancing corporate business reputation and market trust.Anti-Bribery and Anti-Corruption
The BESTWAY strictly complies with relevant laws and regulations continuously strengthening anti-bribery and anti-corruption management
requirements and embedding the principles of clean practice and honest operation into the entire process of corporate governance and
business operations. The Company clearly prohibits any form of commercial bribery interest transfer and improper interest exchange in
various institutional documents such as the "Articles of Association" "General Manager Work Rules" "Internal Audit System" "Employee
Handbook" "Contract Management Measures" and "Bidding Management Measures" and establishes accountability mechanisms for
violations. At the same time we have established a risk management matrix incorporating anti-bribery risks into the scope of key risk
control conducting risk identification and control measure review for key links such as procurement bidding contract signing and fund
payment strengthening system implementation through internal audit supervision and rectification tracking mechanisms and continuously
improving anti-fraud and anti-bribery risk prevention and control capabilities.
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Case: Tianhai Defense Organizes Employee Participation in Internal Control and Anti-Fraud ForumTianhai Defense organized its employees to participate in the “7th Industry Forum on Corporate Internal Control and Anti-Fraud.” The event featured specialized training and discussions on topics such as corporate internal control development and
the prevention and control of bribery and fraud risks. Participants gained a systematic understanding of fraud investigation
practices and reviewed typical case studies thereby further enhancing their ability to identify commercial bribery risks and
improve compliance management standards.Tianhai Defense organizes employees to participate in an internal control and anti-fraud forum
Key Performance：
* In 2025 the BESTWAY's anti-corruption training totaled 3 hours covering 150 people.* In 2025 no commercial bribery or corruption incidents occurred and no serious violations occurred.Anti-Unfair Competition
The BESTWAY strictly complies with the "Anti-Unfair Competition Law of the People's Republic of China" and other relevant laws and
regulations conducting business activities in a standardized manner and firmly opposing any form of unfair competition. The Company
has formulated and implemented the "Bidding Management Measures" and "Information Disclosure Deferral and Exemption Management
Measures" clarifying the identification standards and protection mechanisms for commercial secrets adopting prudent disclosure
and confidentiality management measures for core technical information business information and customer and supplier related
information preventing unfair competition risks caused by improper information disclosure. At the same time we have established internal
information approval processes and insider management mechanisms strengthened insider information and commercial secret protection
standardized external information release behavior and maintained a fair and orderly market competition environment.Key Performance：
* During the Reporting Period the BESTWAY had no litigation or major administrative penalties caused by unfair competition behavior.Equal Treatment of SMEs
In the process of business cooperation the BESTWAY adheres to the principles of fair competition and honesty and trustworthiness conducts
procurement bidding and project cooperation in accordance with laws and regulations and ensures that various market entities including
SMEs have equal opportunities to participate and compete fairly. We follow the principles of voluntariness equality and equivalent
compensation in contract signing performance and settlement do not set unreasonable transaction conditions do not abuse market
position do not engage in unfair competition behavior and effectively protect the legitimate rights and interests of partners.
2903
Environment
Aligned with the United Nations Sustainable Development Goals
Key Issues
Addressing Climate Change
Pollutant Emissions
Waste Management
Environmental Compliance
Energy Use
Water Use
Green Ships
Circular Economy E
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Addressing Climate Change
The BESTWAY actively responds to the national "Dual Carbon" strategy embedding sustainable development into the core of the Company's
transformation. Leveraging its advantages in R&D design and construction in the shipbuilding and marine engineering fields the Company
prospectively lays out low-carbon technology R&D committing to promoting the green transformation of the shipping industry through
the new energy vessel business and building a green and resilient industrial ecosystem. The Company systematically manages climate
risks and opportunities and works together with industrial chain partners to promote the Company's sustainable development through an
integrated low-carbon and intelligent path.The Company focuses on green ship technology R&D and energy efficiency design optimization implementing greenhouse gas emission
reduction actions. By developing clean fuel-powered vessels such as methanol and natural gas to replace traditional fuel it reduces carbon
emissions from ship operations at the source. At the same time we vigorously promote energy efficiency improvement in ship design strictly
applying standards such as the Energy Efficiency Design Index (EEDI) for optimization and through prospective layout of intelligent auxiliary
systems and an integrated "Ship-Port-Route" energy efficiency management platform reduce the energy consumption and carbon footprint
of the overall shipping system.Indicator Unit 2025
Scope 1 tCO2e 3664.82
Scope 2 tCO2e 28867.71
Total GHG Emissions Scope 1 + Scope 2 32532.53
GHG Emission Intensity tCO2e/Million Revenue 7.20
Environmental Compliance
Management
The BESTWAY strictly complies with the "Environmental Protection Law of the People's Republic of China" and relevant laws and regulations
continuously improving the environmental management system and incorporating environmental compliance management into the core
scope of corporate governance. The Company conducts comprehensive environmental control from governance structure institutional
norms management processes emergency response and capacity building committed to achieving coordinated development of
production and operation and environmental protection. During the Reporting Period our environmental management effectiveness was
recognized. The Company and its subsidiaries Shanghai Jiahou Ship and Ocean Engineering Research and Design Co. Ltd. and Jiangsu Dajin
Heavy Industry Co. Ltd. have obtained and maintained ISO 14001 environmental management system certification and Jiangsu Dajin Heavy
Industry Co. Ltd. has obtained a compliance certificate of no environmental administrative penalties in the past three years.Key Performance：
* In 2025 the Company's total environmental protection investment was RMB 6.556 million.ISO 14001 Environmental
Management System
Certification
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Environmental Management System Construction
The BESTWAY incorporates environmental compliance management into the core scope of corporate governance and has established a
systematic and complete environmental management system. Based on the GB/T 24001-2016 (ISO 14001:2015) standard and combined
with the actual production and service processes of the Company and its subsidiaries the Company has established an integrated
management system (QHSE) with the "Quality Occupational Health and Safety Environmental Management Manual" as the core program.This system clarifies the policies objectives organizational structure responsibilities and operational control requirements of environmental
management aiming to ensure that the Company's environmental management activities comply with laws and regulations and achieve
continuous improvement.Environmental Management Policy：Implement green strategy and prevent environmental pollution.Environmental Management Objectives：
* 100% emission compliance rate
* 100% hazardous waste recycling rate
Tianhai Defense Environmental Management Framework
* Formulate and issue the Company's environmental management policy and annual objectives
* Bear ultimate responsibility for the effectiveness of the Company's environmental management systemDecision-Making Level * Ensure that management system requirements are integrated into the Company's business processes
* Promote the construction and continuous improvement of environmental management culture
* Organize the identification and evaluation of environmental factors in the Company's activities
* be responsible for collecting environmental laws and regulations applicable to the Company and
Organizing compliance evaluation
Management Level * Organize the formulation and management of environmental-related procedure documents and
Emergency plans
* Supervise the implementation of environmental objectives and measures by subsidiaries and
departments.* Implement identified important environmental factor control measures within their respective business
scope
* Be responsible for daily operation and maintenance of environmental protection facilities (such as sewage Execution Level Receiving cabinets industrial vacuum cleaners)
* Classify label store and contact for disposal of waste according to regulations
* Ppromptly report environmental abnormal information and participate in emergency drills and response.Tianhai Defense Environmental Management Process
* Develop an “Environmental Factors Management Procedure” to regularly identify and evaluate Identification and Assessment of
Environmental Factors environmental factors associated with the company's activities products and services; determine significant environmental factors and establish control measures
* Develop annual environmental management objectives based on management policies
significant environmental factors and compliance obligations and plan specific implementation
measures resource requirements and completion deadlines.Goal Setting and Management Plan * Develop the “Environmental Operations Control Procedure” and ensure that each subsidiary
implements daily monitoring and control of significant environmental factors
* Establish the “Emergency Preparedness and Response Procedure” and specific contingency
plans and organize regular drills and reviews.* Develop the “Environmental Operations Control Procedure” to ensure that each subsidiary
Operations Control and Emergency implements daily monitoring and control of key environmental factors;
Preparedness * Establish the “Emergency Preparedness and Response Procedure” and specific contingency
plans and conduct regular drills and reviews.* Monitor key environmental characteristics and assess the effectiveness of the system through
Monitoring Inspection and internal audits and management reviews;
Improvement * Implement corrective and preventive actions for nonconformities to drive continuous
improvement in environmental performance.
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Environmental Emergency Management
The BESTWAY attaches great importance to the prevention and response of sudden environmental incidents strictly following laws and
regulations such as the "Emergency Response Law of the People's Republic of China" and integrating environmental risk management
into daily operations and strategic decision-making. During the Reporting Period the Company had no incidents of penalties by regulatory
authorities for violations of environmental management-related laws and regulations.Environmental Emergency Management System
* Improve institutional system and consolidate management foundation
The Company has established the "Emergency Preparedness and Response Procedure" organizing the preparation of
emergency plans for potential emergencies and accidents. At the same time we have formulated special plans such as the
"Special Emergency Plan for Hazardous Chemicals (Paint) Leakage Accidents" clarifying the complete process of information
reporting response classification and on-site disposal and establishing the disposal principle of "control first then treatment
save people first reduce losses".* Dynamic identification of environmental factors to achieve source control
The Safety Environmental Protection and Quality Department organizes the establishment of the "Environmental Factors
Management Procedure" regularly identifying and evaluating environmental factors in the Company's activities products
and services with special consideration for abnormal situations and reasonably foreseeable emergencies. For important
environmental factors control planning is carried out from aspects such as target indicators management plans and
operational control and emergency preparedness and response measures are simultaneously planned for possible accidents
or emergencies.* Strengthen plan construction and drills to enhance emergency response capabilities
The Company organizes subsidiaries and relevant departments to regularly conduct emergency plan drills strengthen safety
production and civilized production management and enhance employees' awareness and ability to respond to emergency
situations. We regularly review the effectiveness of the "Emergency Preparedness and Response Procedure" especially revising
and improving it promptly after emergencies or accidents occur to ensure continued applicability.Resource Management and
Circular Economy
The BESTWAY systematically promotes resource management and circular economy focusing on three major areas: efficient energy
utilization water conservation and waste recycling building a whole-process control system. Through measures such as clean energy
substitution water conservation management and source reduction the Company continuously reduces resource consumption intensity
and promotes green and low-carbon transformation.Energy Utilization
The BESTWAY continuously promotes the efficiency and low-carbonization of energy use continuously improving energy utilization efficiency
and contributing to green manufacturing and sustainable development through systematic measures such as improving management
systems optimizing operation models and promoting technological innovation. The energy used in the Company's production and
operations mainly includes two categories: direct energy and indirect energy with specific usage scenarios as follows:
Major Energy Types and Applications
Category Energy Type Main Usage Scenarios
Natural Gas Production equipment operation etc.Direct Energy
Diesel Production equipment operation etc.Indirect Energy Electricity Production office lighting equipment operation living electricity etc.
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Energy Consumption Data for 2025
Type Unit 2025
Purchased Electricity kW·h 54405793
Natural Gas m3 1401323
Diesel Consumption L 327380
Total Energy Consumption tce 8774.49
The Company continues to promote energy-saving and consumption-reduction projects across the entire company in areas such as clean
energy substitution equipment energy-saving optimization process transformation and management improvement. The main progress
and achievements in 2025 are as follows:
Progress on Key Energy-Saving Projects in 2025
Key Area Project Measures Implementation Progress and Quantified Results
* Launched the 15000-ton methanol-electric hybrid multi-purpose Methanol-electric hybrid
vessel technology R&D and vessel project focusing on core technology R&D such as methanol fuel
integration supply systems and intelligent energy management forming a one-stop service capability of "design-integration-management".* Obtained CCS methanol bunkering and LNG bunkering design scheme
Maritime bunkering approval certificatesClean Energy Substitution and
Green Transformation technology certification and * Completed 2300 tons of LNG bunkering 1200 tons of methanol services bunkering and 800 tons of liquid nitrogen bunkering throughout the
year.* Pay attention to the application of wind power and photovoltaic
Green Electricity power in the offshore engineering equipment field participating in marine new energy projects through self-owned offshore engineering
equipment.* Empower production through digital and intelligent technology
Production process applications to improve energy utilization efficiency
digitalization and
intelligence * Completed 6 new energy vessel-related technical design and consulting
services throughout the year and submitted 2 patent applications.Equipment and System Energy- * The "Exploration 212" vessel achieved continuous operation throughout Saving Optimization the year after comprehensive upgrading significantly improving asset
Offshore equipment operation efficiency
upgrading and operation
optimization * Integrated semi-submersible barge leasing towing and launching
operations building a full-chain service system and effectively
shortening operation cycles.* The Company's natural gas refueling business operates through water
Operation Management New Energy Transportation and land natural gas refueling stations providing refueling services for Improvement various CNG/LNG fuel vehicles and vessels and providing CNG refueling
guarantee for gas taxis in the Shanghai area.* Equipped with energy-saving lamps air conditioning has temperature
setting requirements eliminating long-light phenomena in office and
living areas.Green Office Office (Living) Area Energy * Reduce standby energy consumption of office equipment promptly Saving turn off power to computers printers copiers water dispensers and
other equipment not used for long periods.* The Company promotes the new energy transformation of vehicles
with 4 new energy vehicles (2 newly purchased 2 fuel-replaced).
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Water Resource Utilization
The BESTWAY attaches great importance to water resource management regarding it as an important environmental management matter
in the operation process. The Company strictly follows the "Water Law of the People's Republic of China" "Water Conservation Regulations"
and local water resource management-related regulatory requirements incorporating water resource management into daily operation
monitoring. In the production and operation process the Company's water source is mainly municipal water supply mainly used for
production and manufacturing scenarios. After assessment the water resource supply in the area where the Company operates is stable
and there is no risk of water shortage in production and operation.Key Water-Saving Measures at Tianhai Defense
Category Water Conservation Measures
Build rainwater collection ponds to collect initial rainwater for treatment (oil separation sedimentation air
Rainwater flotation biochemical treatment) configure rainwater treatment control integrated machines no discharge of rainwater in the first 15 minutes and reuse of later rainwater to achieve efficient intelligent energy-saving
and emission-reduction purposes.Water Consumption Data for 2025
Indicator Unit 2025
Water Resource Consumption ton 84567
Water Resource Reuse ton 178
Total Water Consumption ton 84389
Circular Economy
The BESTWAY adheres to the concept of efficient resource utilization and circular development promoting resource recycling and waste
reduction from the perspective of the entire product life cycle. In the design phase of ships and offshore equipment priority is given to
environmentally friendly materials production processes are optimized and waste generation is reduced; in the operation phase recyclable
materials such as packaging materials are promoted for classified recycling and reuse; in supply chain management environmentally
friendly products are prioritized for procurement promoting green supply chain construction.
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Emission Management
The BESTWAY attaches great importance to emission management implementing whole-process control over wastewater exhaust gas and
various wastes based on the environmental management system. Through institutional construction and standardized operation it ensures
continuous compliance with requirements and minimizes the impact of operations on the environment.Pollution Emission
The BESTWAY complies with laws and regulations such as the "Solid Waste Pollution Prevention and Control Law of the People's Republic of
China" "Air Pollution Prevention and Control Law of the People's Republic of China" and "Water Pollution Prevention and Control Law of the
People's Republic of China" strictly implementing emission standards such as the "Integrated Wastewater Discharge Standard" (GB 8978-
1996) and "Integrated Air Pollutant Discharge Standard" (DB31/933-2015). During the Reporting Period the Company effectively controlled
pollutant generation and emissions through the environmental management system.Key Measures for Pollutant Emission Management in Coastal and Maritime Defense
Category Pollutant Emission Management Measures
Wastewater Domestic sewage is directly discharged into the municipal sewage pipe network.Dust generated during sandblasting is treated by cartridge dust collectors and discharged through
Exhaust Gas 15-meter high exhaust stacks; painting production exhaust gas is treated by zeolite rotor + catalytic combustion devices and discharged through 15-meter high exhaust stacks; smoke (dust) generated from
on-site welding and grinding is emitted in an unorganized manner with regular testing.Key Performance：
* 100% wastewater discharge compliance in 2025.* 100% exhaust gas emission compliance in 2025.Waste Treatment
The harmless waste generated in the production and operation of the BESTWAY includes office and domestic waste and general industrial
solid waste while hazardous waste includes fluorescent tubes energy-saving tubes toner cartridges waste paint buckets waste activated
carbon and waste paint slag. The Company complies with laws and regulations such as the "Solid Waste Pollution Prevention and Control
Law of the People's Republic of China" and has formulated and implemented the "Waste Control Procedure" clarifying waste classification
storage and disposal requirements.Key Performance：
* In 2025 the Company achieved 100% compliant disposal of solid waste and 100% recycling rate of hazardous waste.
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Key Initiatives for Waste Management at Tianhai Defense
Category Waste Management Measures
General Solid Waste Management * Centralized storage at designated locations unified treatment.* Collected labeled and classified by various departments unified recycling and reuse or sent Recyclable Management to recycling stations for treatment.* Stored in dedicated areas placed safely and securely away from heat sources
Hazardous Waste Management
* Uniformly entrusted to qualified institutions for treatment.Solid Waste Generation in 2025
Indicator Unit 2025
Harmless Waste Generation ton 3765.41
Hazardous Waste Generation ton 176
Waste Recycling ton 2165.41
3704
Social
Aligned with the United Nations Sustainable Development Goals
Key Issues
Product and Service Safety and Quality
Supply Chain Security
Data Security and Customer Privacy Protection
Employees
Innovation-Driven Development
Social Contribution
Supporting National Defense S
Disaster Prevention and ReliefBestway Marine & Energy Technology Co.Ltd
2025 Environmental Social and Governance Report
Product and Service Safety and Quality
The BESTWAY regards quality as the core guarantee of the enterprise advancing quality work from both management system and culture
cultivation dimensions. In management it implements whole-life-cycle control based on the QHSE system strengthens risk identification
and closed-loop improvement and ensures quality objectives are achieved; in culture it integrates quality awareness into employee norms
and promotes internalization and externalization through systematic training. During the Reporting Period the system operated effectively
quality objectives were achieved training was carried out in an orderly manner and product and service safety and reliability were strongly
supported.Quality Management
The BESTWAY always regards product quality and safety as an important cornerstone of the enterprise's stable operation. The Company has
established and continuously operates an integrated quality occupational health and safety and environment (QHSE) management system
formulating the "Quality Occupational Health and Safety Environmental Management Manual" implementing standardized management
for the entire life cycle of product design procurement control production and manufacturing project implementation inspection and
delivery and after-sales service.Focusing on quality risk control and continuous improvement the Company has established systems such as the "Risk and Opportunity
Control Procedure" "Non-conformance Control Procedure" and "Corrective and Preventive Action Procedure" identifying evaluating
and responding to potential quality risks in the product realization process and through process monitoring data analysis and internal
coordination promptly correcting deviations and optimizing processes forming closed-loop management to ensure the stability and
reliability of products and services
Status of Quality Objective Management
Quality Objective Achievement Status
100% qualification rate of main product performance indicators 100%
100% product delivery success rate 100%
Key Performance：
* During the Reporting Period the Company's ISO 9001 quality management system certification
certificate was valid.ISO 9001 Quality
Management System
Certification
Quality Culture Cultivation
The BESTWAY attaches great importance to the cultivation of quality culture integrating quality awareness into employee professional
behavior norms. The Company takes new employee onboarding training as the starting point systematically carrying out publicity and
education on QHSE systems product and service quality standards position quality responsibilities and risk prevention and control. Training
adopts a combination of system explanation case analysis and practical exercises to ensure that employees understand and consciously
comply with quality management requirements.
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Key Performance:
* In 2025 the Company carried out 61 quality control and product safety-related training sessions covering 943 person-times with a
training duration of approximately 75 hours effectively supporting the in-depth implementation and continuous optimization of the
quality management system.Customer Service and Management
The Company adheres to the philosophy of "Pursuing Perfect Service Continuous Technological Innovation" relying on the "Service
Management Manual" as the institutional foundation building a customer management framework covering the entire service process
coordinated by the Marketing Center and supported by multiple departments forming an operating mechanism with clear responsibilities
and efficient response. At the same time we have built a multi-level communication system actively listening to customer feedback
continuously improving service response and problem-solving efficiency and simultaneously promoting service capability construction in
global business expansion committed to establishing long-term stable and mutually trusting cooperative relationships with customers
and continuously creating value.Customer Service Management
The Company takes the "Service Management Manual" as the general institutional program continuously improving the customer service
management system in combination with annual business objectives and business development needs. Focusing on key business processes
such as customer demand acceptance contract and order execution service resource coordination service process management and
customer satisfaction tracking we systematically organize and dynamically optimize clarifying the division of responsibilities work
interfaces and coordination mechanisms in various customer service links continuously consolidating the institutional foundation of
customer service work and improving the standardization and executability of service management.Customer Service Management System
* Conduct demand communication and technical docking around customer application scenarios and
Pre-sales Stage project needs standardizing customer information collection demand assessment and solution
formulation processes.* Strengthen overall management of customer needs contract execution and delivery processes
During-sales Stage dynamically tracking order execution progress milestones and delivery status
* Establish customer problem classification acceptance and closed-loop management mechanisms.* Improve the after-sales service network and professional service support system covering technical
After-sales Stage support maintenance guarantee and service response
* Strengthen spare parts guarantee management and optimize service resource allocation.Customer Communication and Satisfaction Management
The Company attaches great importance to continuous communication and feedback management with customers regarding customer
satisfaction as an important basis for evaluating the effectiveness of product and service quality management. Focusing on the operation
of the quality and service management system the Company has established and implemented a customer satisfaction measurement
and improvement mechanism systematically evaluating customer satisfaction with the Company's products and services through
institutionalized and process-based management and promoting continuous improvement.
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Customer Satisfaction Measurement and Improvement Mechanism
The Company has formulated the "Customer Satisfaction Information Measurement Procedure"
System Construction * standardizing customer satisfaction surveys covering major customers at least once a year.* Uniformly compile the "Customer Satisfaction Information Survey Form" distribute and collect according Survey
Implementation to prescribed scope and cycle and conduct supplementary verification of results through telephone sampling surveys and other methods.* Calculate customer satisfaction coefficient and satisfaction rate form the "Customer Satisfaction Survey Statistical Analysis Analysis Report" systematically identifying improvement directions.Continuous * Connect with non-conformance control and corrective prevention processes continuously tracking the
Improvement implementation of improvement measures and rectification effects.Key Performance：
* In 2025 the Company's customer satisfaction target was >95.5% and the comprehensive customer satisfaction rate was 100%
successfully achieving the target. At the same time no customer complaints were received during the Reporting Period.Innovation-Driven
The BESTWAY always regards innovation as the core driving force of enterprise development committed to continuously improving core
competitiveness and promoting industry technological progress and sustainable development through systematic R&D management
diversified incentive mechanisms fruitful innovation results and a strong innovation culture.R&D Innovation Management
The Company has established an R&D innovation organizational system with clear responsibilities and efficient coordination forming a
three-tier management model of "Decision-Making Level – Management Level – Execution Level". The Technology Center as the centralized
management department for the Company's scientific research work coordinates the Company's technological innovation resources while
subsidiaries and business departments establish R&D teams that operate independently under a unified framework jointly promoting the
systematic and standardized development of R&D innovation work.R&D and Innovation Management Structure
* Approve the Company's medium and long-term technological innovation development plan and annual
R&D plan
Decision-Making * review and approve major scientific research project initiation and external scientific research project
Level applications
* decide on scientific research funding budget and resource allocation plans
* review and approve scientific research project result rewards and outstanding contribution recognition.* Organize the compilation of medium and long-term technological innovation development plans and
annual R&D plans
* Supervise and guide the scientific research management work of subsidiaries to ensure compliance with
Management Level the Company's overall strategy
* Review subsidiary technical standards technical system updates and adjustment plans
* Organize external scientific research project applications process supervision and acceptance
coordination.
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* Formulate and organize the implementation of annual R&D plans for their respective units based on the
Company's overall R&D plan
* Undertake the execution of specific scientific research projects implementing the project leader systemExecution Level * Submit project mid-term reports completion reports and related result materials on time
* Accept inspection assessment and guidance from the Technology Center and Scientific Research
Management Department.
(1)Internal R&D Project Management
The Company implements whole-process management of internal scientific research projects in accordance with the "Scientific Research
Work Management Measures" including project application project approval daily management mid-term inspection cost accounting
completion acceptance and result management.Key Control Processes for Research Projects
* Complete project application in the first quarter of each year
Project Initiation * Departments submit the "Project Application" and "Project Plan" which are reviewed by experts and
approved by the General Manager's Office Meeting before issuing the project approval notice.* Implement the project leader system
* Changes in research content and progress must fill out the "Project Change Form" for approvalProcess Control * The Scientific Research Management Department organizes mid-term inspections and the project team
submits the "Mid-term Report".* After project completion submit the "Project Work Report" research report and result materials
Result Acceptance * The Scientific Research Management Department organizes expert acceptance and after passing
completes result registration and material archiving.
(2)External Research Project Management
For externally funded research projects including government-funded or horizontally collaborated ones the company has formulated the
"External Research Management Measures" to regulate the entire process from project application and initiation through implementation
and progress management to final acceptance and closure.External Research Project Management Process
Project Proposal * The Research Administration Department centrally coordinates project applications and issues project
Submission guidelines.* Once the project is approved an “External Research Assignment Letter” will be issued and an Launch and
implementation implementation plan and budget will be prepared; the project will proceed following review and approval.* Implement a project leader system;
* Submit an annual summary and the plan for the following year;Process * Project changes must undergo the approval process;Management * The Research Management Department will conduct regular progress reviews and ensure proper process
oversight.* Submit a final report and documentation of project outcomes upon completion;
Final Project Review * The Research Management Department will organize an internal preliminary acceptance review and
coordinate with external audits and project evaluation.
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Innovation Incentive Management
To stimulate employees' innovation vitality the Company has established a multi-level incentive system including intellectual property
rewards project result rewards technical allowances and outstanding contribution recognition.Innovation Incentive Mechanisms
* Patent rewards: RMB 4000 per invention patent RMB 1500 per utility model design and software
Intellectual Property copyright
Incentive * Transformation rewards: Appropriate rewards are given to those who make outstanding contributions to
transformation implementation or licensing transfer.R&D Project Result * After project acceptance rewards are given at no more than 10% of the actual government support funds
Incentive received.* Gold Award: RMB 90000 per personOutstanding * Silver Award: RMB 30000 per personContribution Award * Bronze Award: RMB 10000 per person.R&D Innovation Achievements
Driven by technological innovation the Company accurately grasps the global shipping green and intelligent transformation trends with
a forward-looking vision continuously leading the product innovation direction in the shipbuilding market. In 2025 our R&D innovation
achieved remarkable results with fruitful achievements in vessel type development key technology breakthroughs and industry
collaboration.Research and Development Achievements
* Developed "World's Largest 600MW Power Generation Vessel" and "500-meter Saturation Diving
Support Vessel - Shenda"
Developed series vessel types of "40000-ton" "80000-ton" "17400-ton" "45000-ton" multi-purpose
New Products and Vessel *
Type R&D vessels* Developed new vessel types such as the world's highest pile frame "156-meter Piling Vessel" and
"17000-ton Deep-sea Cable Laying Vessel"
* Developed series vessel types of large fishing farming factory vessels.* Participated in the compilation of ISO international standard "Double Cross Bollards"
* Hosted industry association standardization meetings; cooperated with industry partners to carry out
AI-enabled innovative R&D cooperation
Industry Collaboration * Established the Ship and Marine Equipment Design and Selection VR Encyclopedia Promotion
Association
* The Company participates in multiple industry associations and is a member at the council level or
above.
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Intellectual Property Protection
Intellectual Property Management
To stimulate employees' innovation vitality and continuously enhance the enterprise's core competitiveness the BESTWAY has established
and improved the intellectual property management system in accordance with relevant laws and regulations such as the "Patent Law of the
People's Republic of China" "Implementation Rules of the Patent Law of the People's Republic of China" and "Requirements for Enterprise
Intellectual Property Compliance Management System" (GB/T 29490-2023). The Company has formulated and implemented institutional
documents such as the "Intellectual Property Manual" "Intellectual Property Management Work Manual" and "Intellectual Property Reward
and Punishment System" clarifying the ownership of intellectual labor results formed by employees in the performance of their work duties
as well as corresponding incentive and restraint mechanisms systematically promoting intellectual property protection and management
work and continuously cultivating the driving force for enterprise innovation and development.Key Performance：
* In 2025 the Company passed the GB/T 29490-2023 Intellectual Property
Compliance Management System certification.Intellectual Property Compliance
Management System Certification
Intellectual Property Statistics
Type Unit Quantity
Total Intellectual Properties piece 592
Total Valid Patents piece 453
New Invention Patents piece 10
New Software Copyrights piece 37
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Intellectual Property Risk Management
Tianhai Defense has formulated the “Intellectual Property Risk Management and Control Procedures” to address key aspects of R&D
innovation and the commercialization of technological achievements. The company has established a comprehensive mechanism for the
prevention identification and control of intellectual property risks and has systematically integrated these control requirements into its
business management processes.Intellectual Property Risk Management Mechanism
* Conduct intellectual property risk identification and assessment for activities such as R&D project
initiation technology introduction external collaboration and technology commercialization;
Preventive measures
* Focus on risk areas such as unclear ownership potential infringement and compliance deficiencies
and propose risk control measures tailored to the specific characteristics of each project.* Continuously monitor the use protection and application of intellectual property and dynamically
track patents technological achievements and contract performance;
Ongoing supervision
* Promptly identify new or changing risk factors and initiate risk response procedures upon detecting
potential infringement or disputes.* Establish mechanisms for holding parties accountable for infringement and conducting risk reviews
and analyze and summarize intellectual property risk incidents that have occurred or been resolved;
Post-Incident Response
and Improvement * Continuously improve management processes and control measures regularly assess the
effectiveness of risk management optimize the risk management system and enhance overall risk
prevention and control capabilities.Intellectual Property Training and Exchange
Tianhai Defense regularly conducts intellectual property training and awareness campaigns providing all business departments with
foundational knowledge on patents compliance requirements and risk prevention. Through specialized training sessions and internal
presentations the company enhances employees’ compliance capabilities in research and development as well as collaborative projects.At the same time the company actively monitors industry trends and participates in external exchanges and seminars related to intellectual
property. By learning from advanced experiences and best practices the company continuously improves its intellectual property
management and protection standards thereby effectively safeguarding the legitimate rights and interests of its intangible assets and
innovative achievements.Case: Training Session on Judicial Protection of Intellectual Property Rights: “Supporting the InnovativeDevelopment of Private Enterprises”
On April 14 2025 the company participated in a special briefing on judicial protection of intellectual property rights organized
jointly by the Songjiang District Intellectual Property Office and the Songjiang District Court. The session provided a systematic
interpretation of the judicial safeguards for intellectual property rights in the context of private enterprises’ innovative
development helping employees deepen their understanding of pathways for protecting intellectual property rights and
mitigating legal risks and enhancing their ability to protect innovative achievements in accordance with the law.Case: Professional Training on “Practical Aspects of Litigation in Patent Ownership Disputes”
On April 15 2025 the company invited a professional patent agency to conduct training on the practical aspects of litigation
in patent ownership disputes. Drawing on typical case studies the session provided an in-depth explanation of patent
ownership determination the causes of disputes and response strategies thereby strengthening employees’ awareness of
identifying and mitigating patent ownership risks during R&D and technology commercialization.。
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Case: Intellectual Property Seminar on “IP Protection and Risks of the Deepseek Open-Source AI System”
On April 17 2025 the company organized a special seminar focusing on intellectual property issues related to the application
of open-source artificial intelligence technology. The seminar provided a systematic overview of open-source licensing models
and associated compliance risks with the aim of enhancing employees’ understanding of intellectual property compliance
and risk management in new technology application scenarios.Intellectual Property Seminar: “IP Protection and Risks of the Deepseek Open-Source AI System”
Data Security and Customer
Privacy Protection
Tianhai Defense places a high priority on data security and the protection of customer information. It has established a multi-tiered
information security framework encompassing organizational management technical safeguards and emergency response to ensure the
security integrity and availability of the company’s core data business systems and customer information.Internal Governance Structure
Tianhai Defense has established a management system in which the Information Center centrally oversees information security efforts
system administrators assume tiered responsibilities and operations and maintenance administrators carry out implementation.This has formed an information security management mechanism that integrates “regulatory standards—technical controls—processdocumentation—accountability tracing.” The company has formulated and implemented regulations such as the “Information SystemSoftware Operation and Maintenance Management Measures” “Information System Organization and User Coding ManagementMeasures” “Internet Usage Management Measures” “Information Security Emergency Response Plan Management Measures” and the
“Information Network Incident Emergency Response Plan.” These regulations provide systematic and standardized management for the
classification and grading of information security incidents emergency activation response procedures and accountability ensuring the
secure and stable operation of the company’s core business systems and data assets.
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Tianhai Defense Information Security Management System
Management Levels Primary Responsibilities Control Measures
Information Center Oversee information security policy Policy Issuance Authorization Approval development and strategy approval and Oversight and Inspection
System Administrator Account Creation Permission Assignment CM Platform Approval Workflow Workflow Configuration Management
Operations Administrator Network and server operations maintenance Logging checklists and upgrade monitoring and troubleshooting mechanisms
Network Security Framework
The company employs a technical architecture based on “core redundancy + perimeter isolation + behavioral auditing” to establish a
multi-layered protection system spanning the network system and data layers. Through dual-core redundancy deployment physical
isolation between the guest network and the internal network and a mechanism for auditing and logging internet usage the company
enhances network stability and access security while improving overall data security capabilities and traceability.Network and System Security Flowchart
Core network dual-machine redundancy
↓
VPN Dedicated Line Interconnection for Branch Offices
↓
Perimeter Firewall + Internet Usage Management
↓
Physical Isolation of the Guest Network
↓
Server Cluster + Data Backup System
↓
Gateway Operation Audit + Log Retention
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Customer Information Management
The company has deeply integrated customer information protection into its system access management and business process
management frameworks. During the business design phase data classification role-based authorization and process approval
requirements are considered simultaneously. Through mechanisms such as defining the boundaries of employee information access
managing account lifecycles implementing tiered access controls restricting access to sensitive data and logging critical operations
we reinforce the security boundaries of customer and business data ensuring that information usage is standardized and controllable
responsibilities are clearly defined and operations are verifiable thereby effectively preventing data breaches and unauthorized access
risks.Customer Information Management System
The company has established clear guidelines for the use of employee information:
* Employees are prohibited from using personal email accounts to handle confidential or business-related materials.* Employees are prohibited from uploading company data to external cloud storage services.* Employees are prohibited from setting up unauthorized internet connections.* Internet usage is subject to tiered management and visitor networks are isolated.Key Performance Indicators:
* During the reporting period Tianhai Defense did not experience any incidents involving the leakage of customer privacy nor did
it encounter any major incidents with negative impacts on information security; furthermore the company was not subject to any
penalties related to information security issues.Emergency Response Mechanism
The company has established a tiered response mechanism for information security incidents and an annual drill program clearly defining
the identification criteria reporting procedures and handling requirements for security incidents of different severity levels to ensure that
emergency response plans can be rapidly activated and risks effectively controlled in the event of an incident. At the same time we regularly
organize specialized drills such as system disaster recovery power outage simulations and data recovery exercises to continuously test the
feasibility of our plans and our recovery capabilities. We continuously refine our technical configurations and management processes to
establish a closed-loop management system comprising “prevention—response—recovery—assessment—improvement” thereby enhancing
overall information security resilience and emergency response capabilities.Tianhai Defense Information Security Emergency Response Process
Phase Response Measures
Detection Phase perations staff must report within 20 minutes
Initiation Phase The emergency response team activates the contingency plan
Handling Phase Activate backup equipment or backup links
Recovery Phase Restore business systems
Debriefing Phase Submit an emergency response report
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Digital Highlights
As the company advances the upgrade of its CM and EPC systems it has embedded data security principles into the top-level design and
system architecture planning phases of its digital transformation. While restructuring functions optimizing processes and integrating data
the company is simultaneously refining its access control hierarchy role-based authorization matrix and approval audit trail mechanisms to
ensure seamless coordination between business process design and data access controls.Case: CM System Customization—Building a Supply Chain Collaboration Management Platform
Tianhai Defense undertook a customization project for the CM system to develop a supplier management platform. This
initiative consolidated key processes—including tendering and procurement supplier onboarding supplier information
management contract management and invoice management—onto a unified platform enabling end-to-end online
management of the entire supplier lifecycle. Additionally the platform enables data interconnection and sharing across
the entire supply chain allowing for real-time monitoring of purchase orders and logistics delivery status. This enhances
warehouse receiving efficiency and data consistency effectively reduces the workload associated with duplicate verification
and lowers labor costs thereby driving the upgrade of supply chain management toward greater collaboration and
digitalization.Case: EPC Group Edition Upgrade—Advancing Digital Collaboration in Design-Build Integration
In 2025 Tianhai Defense initiated an upgrade of the EPC Group Edition system focusing on strengthening the digital
integration of design drawing management supply chain management and production planning. By integrating and
optimizing production preparation plans drawing schedules and procurement plans the company achieved centralized data
management and collaborative sharing throughout the entire production and construction process thereby improving the
efficiency of coordination between design changes and production execution.Supply Chain Security
Tianhai Defense continues to refine its supply chain management system. By synergistically advancing institutional standards process
controls and IT infrastructure development the company has established a comprehensive management mechanism covering supplier
onboarding procurement execution contract management and performance evaluation. This approach strengthens risk identification and
dynamic monitoring capabilities thereby enhancing the stability compliance and security of supply chain operations.Supplier Management
The company has established and implemented the “Supplier Management Procedure” which defines mechanisms for supplier
qualification evaluation and ongoing management to ensure that procured products and outsourced processes meet quality and
compliance requirements.
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Supplier Management System
* Specify that suppliers must provide basic qualification documents such as business licenses permits
and system certification certificates;
* Conduct verification of business registration information and review of the Unified Social Credit Code;
Conduct legal compliance reviews including checks for individuals subject to enforcement actions for
Supplier Onboarding *
Management dishonesty litigation risks and bribery records;
* Conduct specialized qualification reviews for products requiring special permits such as hazardous
chemicals the transportation industry and special equipment;
* Upon approval include the supplier in the “List of Qualified Suppliers/Outsourcing Partners” subject
to approval by the relevant supervisor or the head of the subsidiary.* Conduct an annual re-evaluation;
* Evaluation criteria include:
a. Product/service quality (70% weighting)
Supplier Performance b. Timeliness of delivery (20% weighting)
Evaluation System
c. Issue response capability (10% weighting)
* Suppliers scoring below 65 points will have their qualification revoked;
* Compile the “Supplier/Contractor Re-evaluation Form” and maintain a dynamically updated list.Key Performance Indicators：
* During the reporting period Tianhai Defense had a total of 5502 partner suppliers with 688 new suppliers added during the year; 5453
suppliers were audited during the year and 877 suppliers were terminated.Procurement Management
The company has strengthened risk control throughout the entire procurement and contract process. By refining mechanisms for supplier
qualification reviews contract evaluations performance monitoring and approval documentation the company has clarified the division
of responsibilities and approval authorities at each stage. It has also enhanced collaborative management with the legal and risk control
departments to ensure that procurement activities are conducted in a standardized and transparent manner with risks under control and
responsibilities clearly defined.* Procurement activities shall be conducted within the scope of the “List of Qualified Suppliers/Control of Approved Contractors”;
Supplier Scope * If procurement from suppliers not on the list is required approval must be sought through the
supplier onboarding system in the CM system.* Conduct 100% contract reviews for all project contracts;
Contract Review and Risk * The Marketing Center collaborates with the Legal and Risk Management Center to identify contract
Coordination risks;
* Strengthen contract data reporting and risk management through the CM system
Key Performance Indicators：
* During the reporting period Tianhai Defense achieved 100% coverage in the review of procurement contracts.
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Digital Supply Chain Management
The company continues to advance the digital transformation of its supply chain. Leveraging the CM system and the procurement platform
it has established online mechanisms for supplier onboarding approval and change management. This enables the centralized collection
of supplier information automatic logging of process milestones and traceability of approval histories thereby enhancing the transparency
collaborative efficiency and risk management capabilities of supply chain management.* Implement online processes for supplier registration changes and approvals;
* Automatically generate supplier codes and archive approval comments;
CM Supplier Onboarding
System * Cover modules for business registration information payment terms performance capability and
legal compliance reviews;
* Closed-loop management of multi-departmental approval workflows
* The procurement platform now includes features for supplier onboarding and notifications of
changes;
System Integration and * The CM system has been integrated with an external supply chain platform to enable automatic Data Interoperability creation of supplier accounts;
* Visualized querying of contract report data has been implemented.Employees
The BESTWAY always adheres to the people-oriented development concept regarding employees as the core driving force for the
sustainable development of the enterprise continuously improving the human resources management system safeguarding employees'
legitimate rights and interests optimizing compensation incentives and career development mechanisms strengthening education
and training and capacity building creating a safe healthy and inclusive working environment promoting the collaborative growth of
employees and the enterprise and achieving a virtuous cycle of organizational development and employee value creation.Employee Rights and Benefits
The BESTWAY strictly follows national labor laws and regulations establishing a human resources management system based on systems
such as the "Director and Senior Management Compensation Management System" "Measures for the Management of Compensation and
Assessment of Senior Management Team of the Company" "Implementation Rules for Performance Assessment of Senior Management
Team of the Company" "Employee Compensation Management System" "Employee Performance Management System" "Employee
Handbook" and "Position Management Measures of the Company" systematically standardizing recruitment and employment
compensation distribution performance management position promotion and employee appeals ensuring that employment management
is legal compliant transparent and clear in rights and responsibilities.
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(1)Employee Recruitment
The BESTWAY adheres to the principle of "open recruitment and merit-based employment" building a standardized and transparent
selection process. The Company gives priority to internal transfers and internal competitions broadening employees' career development
channels; if there are no suitable candidates internally it then conducts open recruitment to the society. Both internal and external
candidates are evaluated according to unified standards to ensure consistent evaluation criteria and fairness and justice. At the same time
we strictly verify identity information and medical examination materials during the onboarding stage to ensure that employees meet the
statutory employment age and position requirements.Key Performance：
* During the Reporting Period the BESTWAY had 1708 employees including 352 new employees with no use of child labor or forced
labor.
(2)Employee Compensation and Benefits
The Company implements a compensation management mechanism oriented toward position value and performance contribution with
employee compensation linked to individual performance position responsibilities and the Company's overall operating performance
reflecting the distribution principle of "priority to value and efficiency". Senior management compensation emphasizes strategic orientation
and risk compliance implementing deferred payment and clawback mechanisms in accordance with the requirements of the "Corporate
Governance Code for Listed Companies" with assessments covering organizational performance personal performance reports and core
backbone cultivation; middle management compensation is based on value contribution and performance orientation with assessments
consisting of organizational performance and personal performance reports; employee compensation is based on performance orientation
and market benchmarking with assessments ensuring alignment with organizational goals through key performance indicators and key
work tasks.In terms of benefits the Company pays social insurance and housing provident fund for employees in accordance with law and purchases
employer liability insurance and traffic accident insurance for all employees. At the same time it provides supplementary welfare guarantees
such as staff canteens staff dormitories commuter shuttle buses holiday gifts and love funds building a welfare system covering statutory
and supplementary protections.
(3)Employee Diversity and Anti-Discrimination
The Company advocates an equal and inclusive corporate culture maintaining an equal attitude toward employees or applicants'
nationality ethnicity region gender religion age or family status. We adopt a "zero tolerance" attitude toward any form of discrimination
harassment or abuse continuously maintaining a fair and orderly working atmosphere.Key Performance：
* During the Reporting Period the BESTWAY had no related discrimination or harassment incidents.
(4)Employee Rights Protection
The Company has established a standardized performance management and appeal mechanism. If employees have objections to
assessment results they may submit written appeals in accordance with regulations and the Human Resources Center will organize review
and investigation to ensure that the assessment process is open and transparent and the results are fair and reasonable. We clearly link
performance to compensation adjustment promotion and career development forming a "evaluation-incentive-development" linkage
mechanism to strengthen the value creation orientation. At the same time we attach importance to labor relationship management insist
on handling various disputes in accordance with laws and regulations and properly protect the legitimate rights and interests of both the
enterprise and employees through a combination of internal communication and coordination and statutory procedures continuously
improving the standardization and compliance of employment management.Key Performance:
* In 2025 the BESTWAY's formal employee contract signing rate and social insurance coverage rate were 100% with no labor disputes
occurring.
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(5)Employee Care
The Company continuously improves its humanistic care mechanism. In 2024 the "BESTWAY Love Fund" was established to help employees
and their families through difficulties when encountering serious illnesses or emergencies. At the same time the Company's labor union
regularly carries out holiday condolences birthday care and cultural and sports activities and organizes themed team building and
employee children activities to enhance employees' sense of belonging and organizational cohesion.Key Performance:
* During the Reporting Period the Company's total investment in helping employees in difficulty was RMB 58900 covering 25 person-
times.Tianhai Charity The labor union organizes The Youth League Branch Farewell Ceremony for Retiring
Foundation Daily a hands-on workshop for organized young employees to EmployeesReport making traditional mother-of- participate in the “Sailing thepearl brooches to celebrate Waves: Youth and Mission HandInternational Women’s Day in Hand” May Fourth Youth Day
themed event
Employee Training and Development
The BESTWAY has established a systematic talent development management system covering training planning organization and
implementation assessment and evaluation and promotion selection in accordance with institutional documents such as the
"Implementation Measures for Employee Education and Training Management" "Employee Performance Management System" and
"Position Management Measures of the Company" clarifying that the Human Resources Center coordinates training and development
work with various departments cooperating in implementation forming a talent cultivation mechanism with standardized systems clear
processes and linked results.
(1)Employee Training
The Company implements an annual training plan management mechanism with various departments formulating annual training
plans based on business development and employee capability improvement needs. We stipulate employees' annual training hours and
implement training registration and file management systems incorporating training records into important reference content for position
appointment and annual assessment.Employee Training Mechanism：
* Training Content: New employee onboarding training position skills training professional technical improvement training and
management capability training etc.* Training Forms: Diversified methods such as internal technical sharing special lectures external training and online learning platforms.* Continuous Training Optimization: After training conduct summary and evaluation through record forms sign-in management and
effect feedback mechanisms continuously optimizing training content and course design.
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Employee Training Mechanism：
* During the Reporting Period the BESTWAY carried out 566 employee training sessions with an employee coverage rate of 87.41%.
(2)Employee Development
The company has established three major career tracks—administrative management business management and professional technical—
and implemented a tiered job grading system to create clear career development pathways. The promotion and selection process adheres
to the principles of openness and fairness incorporating annual performance results job competency assessments and departmental
development needs into a comprehensive evaluation. Performance results are linked to salary grade adjustments and promotions forming
a standardized process of “performance evaluation—qualification assessment—position appointment—salary grade adjustment.” This
encourages employees to specialize in their respective professional fields and pursue continuous growth. The company has implemented
multiple incentive and support measures: it offers special allowances for patents and academic papers rewarding key contributors who
obtain patent authorizations or publish journal articles; it also implements a talent development incentive program providing special
allowances to mentors who undertake training responsibilities. In addition the company provides support for talent relocation and
residency registration as well as assistance with professional title applications. It also gives priority to recommending high-performing
employees for industry awards and for selection as leading or outstanding talents at both the municipal and district levels. At the same
time the company has established a tiered and categorized training system based on operational needs and employees’ professional and
managerial requirements. Through diverse approaches such as specialized training thematic learning and new employee onboarding
programs the company comprehensively enhances employees’ professional skills and overall competence fostering an organizational
environment of continuous learning and shared growth.Occupational Health and Safety
Tianhai Defense adheres to the principle of “safety first prevention-oriented and comprehensive management.” The company has
formulated and implemented the *Quality Occupational Health and Safety and Environmental Management Manual* to establish an
integrated management system for quality occupational health and safety and the environment embedding occupational health and
safety requirements throughout the entire operational process. Led by the Safety Environmental Protection and Quality Department the
company organizes and implements occupational health and safety management. It clearly defines safety responsibilities at all levels
and continuously improves employee health protection and safety risk prevention capabilities through measures such as institutional
development awareness campaigns and training hazard identification and emergency management.
(1)Occupational Health
The company integrates occupational health into its management system for unified planning and
implementation clearly defining requirements for health risk identification job-related risk notification and
employee health protection while strengthening daily management and preventive control mechanisms.The company consistently prioritizes the health and safety of its employees and is committed to creating
a safe comfortable and healthy work environment. Office spaces maintain appropriate temperature
humidity and lighting conditions; work areas are laid out rationally with unobstructed pathways; and
comprehensive fire safety facilities and emergency evacuation signage are provided to ensure employee
safety. Additionally we have obtained ISO 45001 Occupational Health and Safety Management System
certification established a comprehensive risk prevention and control mechanism strengthened preventive
management and continuous improvement and promoted the steady enhancement of occupational
health management standards.Employee Occupational Health Management System
ISO 45001:2018
* Establish a pre-employment physical examination system and position-specific health management Occupational Health and
requirements to ensure that employees’ physical condition meets the safety standards for their roles;
* For high-risk positions implement specialized training and pre-task risk notification mechanisms to Safety Management System
mitigate occupational hazards; Certification
* Conduct occupational health risk identification and control management incorporating office area
safety equipment room safety information system security and electrical safety into routine inspections
to establish a standardized management mechanism
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Case: QHSE and Workplace Safety Training for New Employees
In 2025 Tianhai Defense systematically incorporated QHSE management system and workplace safety training into its new
employee onboarding program. The training covered topics such as workplace safety policies employees’ safety rights and
responsibilities identification of workplace hazards and emergency response procedures. Interactive learning sessions based
on typical risk scenarios were also conducted to strengthen new employees’ safety awareness and risk prevention capabilities.Key Performance Indicators:
* During the reporting period Tianhai Defense did not experience any major workplace accidents.
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(2)Workplace Safety
Building on its occupational health and safety management system Tianhai Defense has established a safety management mechanism
led by the Department of Safety Environment and Quality. The company has clearly defined the division of safety responsibilities among
its various centers (departments and offices) business divisions and subsidiaries and has specified job responsibilities in detail. By issuing
safety requirements through special meetings and information platforms the company ensures that safety production responsibilities are
implemented at every level and continuously strengthens its risk prevention and control capabilities.
(1)Closed-Loop Process for Hazard Identification and Rectification
The company has established a routine safety inspection and special inspection mechanism. In accordance with requirements for risk
classification and control as well as the identification and rectification of hidden hazards we have defined inspection standards responsibleparties and rectification procedures thereby forming a closed-loop management system comprising “identification—rectification—verification—closure.” For key locations such as the headquarters office area equipment rooms and manufacturing subsidiaries we
regularly organize specialized safety inspections and implement focused oversight of high-risk operational areas. We continuously refine the
“High-Risk Operations Prohibited List” and specialized emergency response plans for typhoon and flood prevention thereby strengthening
our capabilities in risk prevention and source control.Key Performance Highlights:
* During the reporting period Tianhai Defense conducted a special inspection of key areas such as the headquarters office space and
equipment rooms identifying a total of 15 safety hazards. Responsibility for rectifying these issues was assigned and they were
incorporated into the maintenance plan for ongoing monitoring; all rectifications have been completed and closed out.
(2)Safety Culture Development and Knowledge Contest
The company disseminates safety knowledge and cautionary case studies through platforms such as digital displays the corporate WeChat
account “Weitianhai” and the CM Safety Column fostering a strong safety culture. During Work Safety Month it organizes a “SafetyKnowledge Competition” featuring on-site contests focused on safety regulations emergency response and hazard identification to help
instill safety principles deeply in employees' minds.Case: Workplace Safety Knowledge Competition
In June 2025 Tianhai Defense held a “Workplace Safety Knowledge Competition.” The event featured competition segments
focused on workplace safety regulations emergency response skills and hazard identification and mitigation using a team
quiz format to reinforce employees’ safety awareness. The event attracted participation from multiple teams fostering a
positive learning environment for safety and effectively promoting the integration of safety principles into daily work practices.Workplace Safety Knowledge Contest
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(3)Emergency Drill Management
The company has implemented a tiered management system for emergency response plans and a routine drill mechanism clearly defining
organizational responsibilities response procedures and requirements for post-incident review and improvement. It organizes specialized
drills and hands-on training focused on typical risk scenarios such as fire evacuations and electrical accidents thereby advancing
emergency management from institutional development to the enhancement of practical capabilities.Case: Emergency Evacuation and Fire Extinguisher Drill
In 2025 Tianhai Defense organized an emergency drill themed “Emergency Evacuation and Fire Extinguisher Drill” which
included fire evacuation procedure drills and hands-on fire extinguisher training. The exercise comprehensively tested the
scientific validity and practicality of the company’s emergency response plan. Under professional guidance employees
mastered the key steps of fire extinguisher operation—“lift pull grip and squeeze”—and enhanced their ability to respond to
early-stage fires through on-site practice. This effectively improved employees’ capacity to handle sudden fire incidents and
their self-rescue and mutual aid skills.Emergency Evacuation and Fire Extinguisher Drill
Case: Electrical Shock Emergency Drill—Safeguarding Lives
In 2025 Tianhai Defense organized a practical electrical shock emergency drill centered on three key components: theoretical
training hands-on CPR practice and simulated accident response. Participating employees systematically studied the use
of insulated tools power disconnection procedures and first aid protocols and mastered CPR skills under the guidance
of professionals. The simulation realistically recreated an electric shock incident covering the entire process from incident
detection and on-site response to emergency dispatch and medical transport effectively testing the feasibility of the
emergency response plan. Following the drill the company conducted a review to address issues such as coordination
between procedures continuously optimizing the emergency response system to tangibly enhance employees’ risk
identification capabilities and practical response skills.Electrical Safety Drill to Protect Lives
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Social ContributionTianhai Defense actively fulfills its corporate social responsibilities by establishing and implementing the“ Regulationson External Donations” to standardize donation practices and ensure that charitable activities are conducted in a
lawful compliant and orderly manner.Key Performance Highlights:
* During the reporting period Tianhai Defense and its subsidiary Dajin Heavy Industry made charitable donations totaling 410000 yuan.Tianhai Defense made donations for disaster prevention and relief totaling 880000 yuan.* Blood Donation Campaigns: We are actively engaged in social welfare initiatives and regularly organize employee groups to donate
blood at the Shanghai Blood Center. Through these concrete actions we demonstrate our compassion give back to society and
showcase our corporate social responsibility.* Support for National Defense: We have deepened the standardized development of grassroots armed forces departments organizing
multiple groups of employees to participate in militia training throughout the year. Additionally we organized senior executives and
members of the Party Committee to visit Xibaipo for revolutionary education activities. We actively responded to the call of the local
People’s Armed Forces Department by participating in militia inspections in Songjiang District Shanghai. Through national defense
education and exchange programs we have strengthened employees’ awareness of national defense contributing to the consolidation
of national defense and the maintenance of social stability.* Disaster Relief Donations: We fully leverage our product and technological advantages in the field of emergency rescue equipment
to provide practical support to the front lines of flood control and rescue operations demonstrating our corporate responsibility and
patriotic spirit.Case: Supporting the Development of Education in Songjiang District
To actively contribute to the development of education in Songjiang District and strengthen ties with the district’s education
system and the Xinqiao Town Government the company responded to the Xinqiao Town Government’s initiative by providing
financial support for education in Songjiang District donating 250000 yuan to the Shanghai Songjiang District Education
Foundation. This initiative demonstrates the company’s commitment to social responsibility. The donated funds will be
allocated by the Songjiang District Education Foundation and used to improve educational facilities within the district fund
further education and training for outstanding teachers and support the development of educational projects thereby
contributing to the advancement of education in the region.
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Case: Blood Donation Drive
In December 2025 the company’s labor union organized a blood donation drive. Colleagues responded enthusiastically
spreading kindness and contributing to a good cause.Blood Donation Drive
Rural Revitalization
Tianhai Defense actively responds to the national rural revitalization strategy. By leveraging its business expertise and resource advantages
the company is exploring diverse pathways for corporate participation in rural revitalization. While adhering to laws and regulations and
maintaining sound business operations the company focuses on areas such as improving public services in rural regions promoting
coordinated industrial development and providing charitable assistance. Through these efforts the company shares the fruits of its
development with society contributing to the realization of regional coordinated development and the goal of common prosperity. In terms
of educational support we have long provided financial assistance to students in impoverished areas of Guizhou. We continuously monitor
their academic progress and personal growth offering both financial support and emotional care. Through these concrete actions we
convey warmth and help students complete their education fostering a positive outlook on life and a sense of social responsibility.Case: Subsidiary Dajin Heavy Industry Supports Rural Revitalization and Fulfills Corporate Responsibility
In 2025 Dajin Heavy Industry a subsidiary of Tianhai Defense actively engaged in rural revitalization efforts focusing its
efforts on rural education and public welfare. On September 16 the company donated 30000 yuan each to Xilaiqiao School
and Xilaiqiao Kindergarten earmarked specifically for improving the educational facilities of rural schools and providing
financial assistance to students from underprivileged families thereby laying a solid foundation for rural talent revitalization
through educational support; On December 23 the company donated 100000 yuan to the Yangzhong City Charity Federation
earmarked for public welfare projects such as rural infrastructure development and assistance for vulnerable groups. With
a total annual investment of 160000 yuan in rural revitalization the company has injected momentum into local rural
development through concrete actions demonstrating its commitment to corporate social responsibility.
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Report Appendix
Key Performance Indicators
1.Governance Performance
Indicator Unit 2025
Operating Revenue RMB 4518501819.11
Number of Board Meetings times 9
Number of Board Resolutions Passed items 43
Number of Board Members persons 9
Number of Female Directors persons 2
Proportion of Female Directors % 22.22%
Number of Independent persons 3
Proportion of Independent Directors % 33.33%
Proportion of Non-Independent Directors % 66.67%
Number of Senior Management persons 5
Number of Male Senior Management persons 3
Number of Female Senior Management persons 2
Proportion of Female Senior Management % 40%
Number of Shareholders' Meetings times 3
Board Attendance Rate at Shareholders' Meetings % 100
Number of On-site Investor Research Visits times 3
Cumulative Number of Investors Received persons 21
Number of Investor Questions Answered times 110
Investor Question Response Rate % 96.49
Number of Periodic Reports Disclosed to Exchange pieces 4
Number of Interim Announcements Released by Exchange pieces 91
Number of Penalties for Information Disclosure Violations times 0
Total Duration of Anti-Corruption Training hours 3
Total Person-times of Anti-Corruption Training personstimes 150
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2.Environmental Performance
Indicator Unit 2025
Environmental Protection Investment RMB 10000 655.6
Purchased Electricity kW·h 54405793
Natural Gas m3 1401323
Diesel Consumption L 327380
Total Energy Consumption tce 8774.49
Energy Intensity (Total Energy Consumption per Million
Revenue) tce/million revenue 1.94
Scope 1 tCO2e 3664.82
Scope 2 tCO2e 28867.71
Total Emissions (Scope 1 + Scope 2) tCO2e 32532.53
Emission Intensity tCO2e/million revenue 7.20
COD Emissions ton 3.78
Wastewater Suspended Solids
(SS) ton 2.43
Ammonia Nitrogen Emissions ton 0.80
Wastewater Total Wastewater Discharge ton 2860
Volatile Organic Compound
Emissions ton 2.64
Particulate Matter Emissions ton 3.22
Total Exhaust Gas Emissions 10000 m3 39602.88
Total Hazardous Waste
Generation ton 176
Total Harmless Waste Generation ton 3765.41
Total Waste Discharge ton 3941.41
Total Domestic Waste ton 1600
Waste
General Industrial Solid Waste
Generation ton 2165.41
General Industrial Solid Waste
Generation ton 2165.41
General Solid Waste Emission
Density ton/RMB million 12.73
Total Water Consumption ton 84389
Total Water Consumption per
Water Resource Million Revenue ton 18.76
Utilization
Fresh Water Consumption ton 84567
Total Water Recycling and Reuse ton 178
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3.Social Performance
Indicator Unit 2025
Total Employees persons 1708
Number of Disabled Employees persons 5
Number of Ethnic Minority
Employees persons 19
Employee Gender Breakdown
Number of Male Employees persons 1293
Number of Female Employees persons 415
Age Distribution of Employees
30 Years Old and Below persons 363
Employee
Employment 30-50 Years Old persons 917
50 Years Old and Above persons 428
Employee Grade Structure
Senior Management persons 7
Middle Management persons 98
Grassroots Employees persons 1603
Employee turnover
Number of Employee Turnover persons 160
Employee Turnover Rate % 9.57
Employee
Satisfaction Employee Satisfaction % 100
Survey
Total Number of Employees
Trained persons 1493
Employee Training Coverage Rate % 87.41
Annual Training Expenditure RMB 768611.53
Number of Employee Training
Sessions times 566
Work-related Accidents cases 3
Number of Work-related Injuries persons 3
Employee Number of Work-related Deaths persons 0
Development and Lost Time Injury Rate per Million
Training Hours LTIR % 5.23
Total Number of Employee Safety
Training Sessions times 152
Employee Safety Production
Training Coverage Rate % 100
Safety Emergency Drill Times times 5
Total Safety Production
Investment RMB 10000 435.3829
Total Safety Production
Investment RMB 10000 435.3829
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Indicator Unit 2025
Person-times of Assistance to
Employees in Difficulty person-times 25
Employee Care
Investment in Assisting
Employees in Difficulty RMB 58900
Product Safety Percentage of Products Recalled
and Quality Due to Health and Safety % 0Reasons
Number of Customer Complaints times 10
Customer Service
and Rights Number of Customer Complaints
Resolved pieces 10
Number of R&D Personnel persons 321
Proportion of R&D Personnel % 18.79%
Total R&D Investment RMB 10000 5059.66
R&D Investment as Proportion of
Main Business Revenue % 1.12%
Total Intellectual Properties pieces 592
Total Valid Patents pieces 453
Technological New Invention Patents pieces 10
Innovation
New Software Copyrights pieces 37
Invention Patents pieces 4
Specialized Refined
Characteristic and Innovative pieces 4
Enterprises
National High-tech Enterprises pieces 6
National Specialized Refined
Characteristic and Innovative pieces 1
"Little Giant" Enterprises
Number of Suppliers companies 5502
Number of Suppliers Reviewed companies 5453
Supply Chain Number of Suppliers Whose
Management Cooperation Was Suspended Due companies 877
to Non-compliance
Proportion of Suppliers with
Integrity Clauses in Contracts % 约 80
Supply Chain Number of Major Supply Chain
Management Risk and Impact Events pieces 0
Person-times of Volunteer
Activity Participation person-times 97
Community Total Volunteer Service Hours hours 145.5
Service Activitie
Total Public Welfare and
Charitable Donations/Total RMB 10000 129
External Donations
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Indicator Index Table
Index Location GRI Standard SZSE Guidelines
（一） About This Report GRI2-2、2-3、2-4 /
（二） Chairman's Message / /
Report Opening （三） About the BESTWAY 2-1 /
（四） 2025 BESTWAY Milestones / /
（五） Annual Honors / /
Responding to the Sky and Expanding
Special Topic to the Sea Contributing to Climate / Climate Change Response
Resilience Innovation-Driven
（一） Sustainable Development
Potential
（二） Sustainable Development Path GRI2-22 /
一、Sustainable
Development Management （三） BESTWAY ESG Management
（四） Stakeholder Communication GRI2-26、2-29 Stakeholder Communication
（五） Materiality Issue GRI3 Sustainable Development Information Disclosure Framework
( 一 ) Corporate Governance GRI2-24 Due Diligence
( 二 ) Protection of Investor Rights and
Interests GRI2-26、2-29 Stakeholder Communication
二、Governance ( 三 ) Compliance Management GRI2-27 Due Diligence
Anti-Bribery and Anti-Corruption
( 四 ) Business Ethics GRI205 Anti-Unfair Competition
Equal Treatment of SMEs
( 五 ) Party Building Leadership / /
( 一 ) Addressing Climate Change GRI305 Climate Change Response
( 二 ) Environmental Compliance Environmental Compliance
Management GRI2-24、404 Management
四、Environment ( 三 ) Resource Management and
Energy Utilization
Circular Economy GRI302、GRI303 Water Resource UtilizationCircular Economy
Pollutant Emissions
( 四 ) Emission Management GRI303、305、306 Waste Treatment
Circular Economy
( 一 ) Product and Service Safety and GRI416 Product and Service Safety and Quality Quality
Customer Service and Management GRI2-25、416、417 Product and Service Safety and Quality
( 三 ) Innovation-Driven GRI2-24、305、306、404 Innovation-Driven
( 四 ) Intellectual Property Protection / Innovation-Driven
( 五 ) Data Security and Customer Data Security and Customer
五、Social Privacy Protection
GRI418 Privacy Protection
( 六 ) Supply Chain Security GRI204-1、308-1、308-2、414-1 Supply Chain Security
GRI401-1、401-3、403-1、403-
2、403-3、403-5、403-6、403-
( 七 ) Employees 7、403-9、403-10、404-1、404- Employees
2、405-1、406-1、407-1、408-
1、409-1、( 八 ) Social Contribution GRI413-1 Social Contribution
( 九 ) Rural Revitalization GRI413-1 Rural Revitalization
Report Appendix / /
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