Stock code:603565

Environmental, Socialand Governance ReportShanghai Zhonggu Logistics Co., Ltd.

2024

Table of Contents

Creating a Harmonious Community 54

Diversity and Equity 55Talent Development 58Caring for Employees 61Health and Safety 65Rural Revitalization and Welfare 67Compliance in Operation 70Corporate Governance 71Business Ethics 72Risk Management 74Index 76Index to the Guidelines No. 14 of Shanghai Stock Exchangefor Self-Regulation of Listed Companies—SustainabilityReport (Trial) 76GRI Index 77Performance Summary 79Reporting Evaluation and Suggestions 82

Preface 2About the Report 2Zhonggu Logistics at a Glance 6Course and Glories 9Annual Features 13Strengthening ESG Governance 18ESG Governance System 19Response to Sustainable Development Goals 23Leading in Low-carbon Shipping 25Climate Change Management 26Low-carbon Sailing 32Deeply Exploring Customer Value 40Building Excellent Service 40Digital Shipping Transformation 48Strengthening Supply Chain Management 52

PrefacePreface

Preface

Introduction to the ReportThis is the Environmental, Social and Governance("ESG") report of Shanghai Zhonggu LogisticsCo., Ltd. (hereinafter referred to as "ZhongguLogistics", "we" or"the Company"). The ESGreport comprehensively describes the economic,environmental and social performance andmanagement initiatives of Zhonggu Logisticsin 2024, focuses on the common concerns ofstakeholders, and discloses the key informationof the Company and its subsidiaries (collectivelyreferred to as "the Group").Reporting TimeFrom January 1, 2024 to December 31, 2024(referred to as the"reporting period"); someinformation and cases might beyond the reportingperiod.Reporting Scope and BoundariesThe Report covers Shanghai Zhonggu LogisticsCo., Ltd. and all of its subsidiaries, with thesame reporting scope as the 2024 Annual Report(hereinafter referred to as the "Annual Report").Notes on DataThe ?nancial data herein comes from theconsolidated report for 2024, which have beenindependently audited by Pan-China Certi?edPublic Accountants LLP(specialized generalpartnership); the remaining of the information anddata are mainly sourced from the Company and theGroup' s internal statistical reports or documents.The monetary amounts indicated herein aredenominated in RMB.Reference StandardsThis report has been prepared with referenceto the "Guidelines No. 14 of Shanghai StockExchange for Self-Regulation of Listed Companies—Sustainability Report (Trial)" issued by the ShanghaiStock Exchange (referred to as the "SSE") and withappropriate reference to the GRI Standards by theGlobal Reporting Initiative (GRI).Con?rmation and ApprovalThe Report was approved by the board of directorson March 28, 2025 following the con?rmation by themanagement.

About the Report

PrefacePreface

?Chairman of Zhonggu Logistics

Message fromthe Chairman

As a pioneer and steadfast player in the ?eld of domestic container logistics in China,Zhonggu Logistics has always forged ahead with the spirit of an innovator. Amidst thewaves of industrial transformation, we continuously re?ne our original intention of“Changing China's Logistics with Containers” and product values of “Safe, E?cient,and Green,” committing ourselves to providing customers with comprehensive containerlogistics solutions. For over two decades, we have consistently aimed to build a symbioticand win-win logistics ecosystem. Facing the challenges of our times, we constantlybreak through business boundaries, reshaping service chains with a digital mindset,and transforming the standardized advantages of containers into incremental value forour customers. On the journey of ful?lling corporate responsibilities, we have alwaysused the creation of shared value as a bond, weaving a development network of sharedresponsibilities and opportunities with our partners. Standing at a new developmentalcoordinate, we are setting our course with a broader vision, committed to making everyjourney carry the warmth of industry progress through the continuous optimization ofservice capabilities and the deepening of governance innovation.Zhonggu Logistics upholds the long-term employee vision of “helping employees achieveambitions in fun and through learning.” We strictly safeguard the legitimate rights andinterests of our employees and thoughtfully organize regular team-building activities andholiday celebrations to enrich their cultural lives and strengthen their sense of belongingto the Company. Through diverse initiatives, we foster a stable and harmonious working

Zhou Bin

environment. At the same time, we place employee training and development at theforefront. In 2024, we actively conducted both internal and external training programs,including onboarding sessions for new employees, a comprehensive training system forexisting sta?, and executive lectures tailored to speci?c needs. These initiatives continuouslysupport employee growth, providing robust talent support for the Company's sustainabledevelopment.Zhonggu Logistics is actively advancing “sea-rail” intermodal transportation, achievinga groundbreaking “Through Bill of Lading (B/L) System”in the fullest sense. Byrede?ning standardized processes and establishing a digital collaborative platform, wehave signi?cantly enhanced the e?ciency of logistics chain coordination. We continue topush forward with the construction of hub logistics parks, and the gradual completion andoperation of multimodal logistics parks in Rizhao, Qinzhou, and Xiamen will facilitate therapid implementation of end-to-end logistics services. We are committed to accelerating thepace of “bulk to container”. This initiative not only contributes to achieving the carbonpeaking and carbon neutrality but also makes a signi?cant impact in addressing globalclimate change.we constantly create value and distribute dividends to stakeholders. In 2024, we plan todistribute dividends of RMB 1.66 billion (tax inclusive), accounting for 90.39% of the netpro?t gained over the same period, providing investors with solid and stable cash returns.Building on the Return Plan for the Next Three Years implemented in the previous reportingperiod, we will continue to maintain an active cash dividend policy from 2023 to 2025,ensuring that the cumulative dividends over the three years will not be less than 60% of thedistributable pro?ts, allowing all shareholders to share in the Company's growth.Looking ahead to 2025, Zhonggu Logistics will focus on the development theme of“deepening internal reforms to enhance e?ciency and pursuing external blue oceanstrategies for growth.” We will prioritize business innovation and cost reduction to improvee?ciency, actively respond to external challenges and uncertainties, and continue to pursuehigh-quality development through relevant business activities. In the future, we will adopt amore open approach to weaving our logistics network, transforming steel vessels into greenlinks that connect ecosystems and economies, and in every departure and docking, we willinscribe the era's annotations of sustainable development.

Zhonggu Logistics at a GlanceZhonggu Logistics at a Glance

Zhonggu Logisticsat a Glance

Company Pro?leZhonggu Logistics is one of the ?rst companies in China specializing in container shipping inthe domestic trade sector. It was listed on the SSE in September 2020 (603565.SH). Since itsinception, the Company has been o?ering clients from industrial and agricultural commercesafe, e?cient, green, and convenient whole-process multimodal transport services, poweredby standard containers and big data, championing the corporate mission of "Changing China'sLogistics with Containers" with steady development. Zhonggu Logistics has grown into acomprehensive modern enterprise that integrates the business of liner transport, comprehensivelogistics, ship management, entity investment, etc.As of the end of the reporting period, Zhonggu Logistics has extended its services across nearly30 Chinese provinces/municipalities and 150 ports, supported by a nationwide network of over200 o?ces and branch companies. The Company maintains a diversi?ed container ?eet includingstandard containers (general cargo containers, food-grade SQ containers, and coal containers) aswell as specialized units such as reefer containers, ?at racks, and open-top containers, capable oftransporting over 10,000 types of goods. Complementing its core waterway operations, ZhongguLogistics has integrated railway and highway resources to deliver comprehensive multimodaltransport services encompassing sea-land transportation, river-sea coordination, water-to-watertransshipment, sea-rail intermodal services, along with specialized cold chain logistics solutions.Having established one of China's most extensive maritime logistics networks, the Companyconnects coastal regions with the Yangtze and Pearl River systems through its "Three Horizontal& One Vertical" strategic layout. It maintains leading market positions in domestic containerthroughput at numerous coastal and Yangtze River ports.As one of China's earliest specialized companies engaged in coastal container transportation,Zhonggu Logistics has consistently ranked among the top three domestic container shippingoperators by ?eet capacity. Currently implementing its transformative "Landing Strategy",the Company is advancing full-process logistics capabilities to provide complete door-to-doorlogistics solutions, further strengthening its core competitiveness in the industry.

Zhonggu Logistics at a GlanceZhonggu Logistics at a Glance

Since its establishment, Zhonggu Logistics has always regarded "culture?rst" as its strategic gene, building its core competitiveness with corporateculture as the core. Over the past two decades, we have continuouslypromoted the dynamic evolution and deepening of the cultural systemthrough strategic upgrades and organizational transformation, constantlyrejuvenating the vitality of the culture. This cultural system, through fourfunctional modules of value orientation, organizational cohesion, behaviorshaping, and talent motivation, has formed the internal driving force for thedevelopment of the enterprise, becoming the core engine for leading theimplementation of strategies and improving organizational e?ciency.

CulturalValues

Sustainability Course

Course and Glories

Formed an initial scale from 2010 to 2013

A new future in 2022-2024

Strategic transformation from 2014 to 2016

New development from 2017 to 2021

In 2010, Zhonggu Logistics was o?ciallyestablished. Its controlling shareholder ZhongguShipping is one of the ?rst companies in Chinaspecializing in container shipping in the domestictrade sector

2022: The ?rst container ship titled"Zhonggu Jinan"with 4,600 TEUs successfully set sail, and the strategyof"shipping loose cargo via containers"was implemented in an orderly manner2023: 15 of 18 container ships with 4,600 TEUs have been delivered, and the remaining three will bedelivered in succession in the ?rst half of 20242024: Zhonggu Logistics and China State Railway Group Co., Ltd jointly issued the nation's ?rst "Through B/L System" for container multimodal transport, achieving a groundbreaking "Through B/L System"

In 2015, Shanghai ZhongguLogistics Co., Ltd. wasestablished

In 2017, strategic investorssuch as Softbank ChinaVenture Capital (SBCVCSoftbank China Capital),YTO Express、 ShanghaiFTZ Fund,、East BellVenture Capital and GLPwere introduced

In 2021, furtherexpanded transportcapacity andenhanced corecompetitiveness ina new developmentperiod

In 2016, big ships wereintroduced from "ZhongguShandong", "Zhonggu Liaoning",etc., to improve the single shipload and shipping e?ciency andreduce shipping costs

In 2019, with implementation ofthe multimodal transport strategy,form a multimodal transportlogistics platform, and the industrialtentacles were extended from theeconomic hinterland of coastal andriverside provinces and cities to theinland areas

In 2017, the direct-to-customerstrategy was launched, realizingthe transformation of serviceobjects from freight forwardersto direct customers

In 2020,o?cially listedon A-sharemain board(603565. SH)

In 2011, key routes including "Shanghai-Guangzhou", "Qingdao Xiamen", "QingdaoGuangzhou", "Taicang-Guangzhou", and "RizhaoGuangzhou" were successively opened, marking thatZhonggu Logistics became one of the ?rst companiesin China specializing in container shipping in thedomestic trade sector that opened boutique routes

Business Layout

Zhonggu Logistics at a GlanceZhonggu Logistics at a Glance

In the past few years of rapid growth, we alwaysvalue the return to shareholders. Since being listedon September 25, 2020, the Company has distributedcash dividends to shareholders, and the cumulativecash dividends reach up to 7.205 billion RMB.

2022The cash dividend amountedto RMB 2,015 million (taxinclusive)

2024The cash dividendamounted to RMB 1,659million (tax inclusive)

2020The cash dividendamounted to RMB 600million (tax inclusive)

2023The cash dividend amountedto RMB 1,512 million (tax

inclusive)

2021The cash dividend amountedto RMB 1,438 million (taxinclusive)

Return to ShareholdersSustainability Rating?Wind ESG Rating

: A

?Sustainalytics Rating Score

: 22.7

The Wind ESG Rating system categorizes companies into seven tiers (CCC, B, BB, BBB, A,AA, AAA) based on score ranges, evaluating ESG risks and opportunities inherent to theirrespective industries while benchmarking performance against sector peers.

Sustainalytics' ESG risk ratings are determined through quantitative assessment of corporateESG exposure, classifying enterprises into ?ve risk tiers (Negligible Risk, Low Risk, MediumRisk, High Risk, Severe Risk) proportionate to risk magnitude, where higher rating scoresindicate greater risk exposure.

1011

Zhonggu Logistics at a GlanceAnnual Features

EconomicIndicators Unit20242023Total TEU capacityTonsApprox. 3.39 millionApprox. 3.51 millionContainer inventoryTEUsApprox. 410,000Approx. 470,000Shipping volumeTEUsApprox.11.29 millionApprox.15 millionOperating incomeRMB11,258,253,18612,438,791,418Net income attributed to shareholdersRMB1,835,400,6301,717,277,555Income tax expenseRMB615,559,193560,333,171Audited basic earnings per shareRMB/share0.870.82Cash dividendRMB1,659,049,851 1,512,045,434Dividend payment rate%90.39 88.05

SocialIndicatorsUnit20242023Total training inputRMB10,000295290Average hours of training for employeesHour51.1544.28Number of complaints received aboutproducts and services

No.65170DonationsRMB408,804200,000Employee volunteer hoursHour3,79712,000Social contribution per shareRMB/share1.501.65

EnvironmentalIndicatorsUnit20242023GHG emissions intensity

Ton of CO2 equivalent/

million RMB

71.9480.95

Energy intensitykWh/million RMB273,664301,242.42Generation intensity of hazardous wasteTon/million RMB0.120.12Generation intensity of non-hazardouswaste

Ton/million RMB0.040.05Water consumption intensityTon/million RMB8.578.16

Key Performance

Annual Features

Under the guidance of the national call,"to speed up the building of a moderncomprehensive transport system thatis safe, convenient, e?cient, greenand economical", Zhonggu Logisticshas broken through the industry painpoints with innovative power. In 2024,it launched the "Through Bill of Lading(B/L) System" reform of multimodaltransport, becoming a benchmarkpractice for promoting the constructionof a strong transportation country. Asthe core carrier of the "bulk to container"strategy, Zhonggu Logistics integratesshipping, port, railway and highwayresources to create an inland containermultimodal transport system that is"integrated with shipping, port, stationand network, e?cient, intelligent andstandardized". It realizes the uni?cation oforders and related documents in the wholechain, seamless service connection andsigni?cant improvement in e?ciency. Ourbreakthroughs in the "bulk to container" and multimodal transport projects also verify the breakthroughvalue of "Through B/L System" in reducing logistics costs and shortening delivery cycles and promote the"dual carbon goals" with low-carbon transformation by optimizing the transportation structure to reducecarbon emission intensity and empowering the standardization process of the industry with intelligentupgrading.

1213

Annual FeaturesAnnual Features

?During the reporting period, Zhonggu Logistics saved about 222,462tons and 1,402,737 tons respectively compared with all rail transportand road transport through "bulk to container" mode;?During the reporting period, Zhonggu Logistics reduced carbonemissions by 2,270 tons through the project of optimizing thelongitudinal inclination of ships.E?ectiveness ofCarbon Reduction

Low-carbon co-creation

Improved E?ciency andHigher Speed

Zhonggu Logistics always adheres to the concept of green development. Through the innovative application of thee?cient transportation mode of "bulk to container" and green ship technology, it has signi?cantly improved logisticse?ciency and greatly reduced carbon emissions, e?ectively promoting the green transformation of the industry.Zhonggu Logistics fully leverages the unique advantages of the "bulk to container" transportation mode, deeplyoptimizes the transportation structure, fully leverages the advantages of waterway transportation in being low-carbon and environmentally friendly, e?ectively reduces the high energy consumption and high emissions problemsof traditional road transportation, and realizes the reduction of carbon emissions in the transportation link, providingstrong support for the acceleration of the green and low-carbon transformation of the transportation industry.According to data released by the National Bureau of Statistics, China's cargo turnover reached 25448.6 billionton-kilometers in 2024. If all were transported by waterway, it would consume 65.96 million tons of standard coaland emit 165 million tons of CO2. Compared with road and rail transport, inland container waterway transporthas stronger energy-saving and emission-reduction capabilities and makes greater contributions to ecologicalprotection.During the reporting period, the proportion of "bulk to container" boxes of Zhonggu Logistics was about 18.16%, andthe turnover was about 1,991 billion ton-kilometers. The carbon emissions of the "bulk to container" transportationmode were about 133,608 tons, saving about 222,462 tons and 1,402,737 tons respectively compared with all railtransport and road transport.

In the ?eld of green ships, Zhonggu Logistics takes "full life cycle green management" as its orientation and buildsa systematic green ship operation system. the Company has made breakthrough progress in green ship technologyinnovation. By implementing the ship trim optimization project, it e?ectively saves fuel use and sets a benchmarkfor the sustainable development of the industry. Zhonggu Logistics practices its commitment to green developmentwith concrete actions and continues to lead the logistics industry towards a greener and lower-carbon future.

On November 22, 2024, the X9622 train carrying 3,000 tons of aluminum rods arrived at Tianjin Port from ZhundongStation in Xinjiang Uygur Autonomous Region. The goods were then loaded onto the Zhonggu Logistics containerliner bound for Dongguan Port in Guangdong Province. This shipment was jointly carried by China RailwayUrumqi Group Co., Ltd., a subsidiary of China State Railway Group, and Zhonggu Logistics. This marked a historicbreakthrough in China's multimodal transport "Through B/L System" service, achieving seamless integrationthroughout the entire transportation process with “a single consignment, a single bill of lading, a single container,and a single settlement”.Compared to traditional transportation methods that involve multiple steps and procedures, multimodal transportmode "Through B/L System" service integrates various modes of transportation, achieving seamless connectionand uni?ed scheduling throughout the entire process. This signi?cantly reduces transfer time, human resourceconsumption, and operational costs, making cargo transportation faster and more e?cient. By scienti?callymatching train schedules with waterway shipping schedules, multimodal transport mode "Through B/L System"service optimizes the utilization of railway capacity and waterway space, minimizing the total transportationtime and ensuring e?cient and timely delivery of goods. Additionally, multimodal transport mode "Through B/LSystem" service achieves integrated management of the entire transportation process, including planning, tracking,and settlement. With a standardized multimodal transport mode bill of lading, customers only need to place oneorder to enjoy seamless service from start to ?nish, greatly simplifying logistics processes, improving transportatione?ciency, and providing an excellent logistics experience for customers.Zhonggu Logistics has focused on key bottlenecks and challenges in logistics e?ciency and cost optimization. Itactively promotes mutual recognition and interoperability of standards for cargo names, box types, packaging, etc.,and orderly connects railway and waterway business processes. Together with partners, it has developed e?cientand convenient rail-water intermodal logistics products. Through designing a standardized multimodal transportmode, Zhonggu Logistics has e?ectively promoted the standardization and orderly operation of multimodaltransport "Through B/L System" service, further improving transportation e?ciency and setting an industrybenchmark.

1415

Annual FeaturesAnnual Features

After over a year and a half of in-depth research and collaborative development by ZhongguLogistics and its partners, the multimodal transport mode "Through B/L System" online systemo?cially achieved automatic push functionality on October 21, 2024. This breakthroughupgrades the traditional o?ine manual logistics tracking method to online automation,successfully replacing manual intervention with digital technology, signi?cantly enhancingdata accuracy and timeliness.The "Through B/L System" online system integrates multiple intelligent functions. By breakingdown information barriers between railways and maritime transport, it enables data sharingand real-time analysis, continuously optimizing the e?cient connection of each link inmultimodal transport mode. It also provides customers with more precise and personalizedtransportation optimization solutions, further enhancing the value and e?ciency of logisticsservices. This system marks an important step towards the digital era in the transportationindustry, becoming a key driving force for industry transformation.

The "Through B/L System" can quickly count the status of in-transit,in-port, and out-of-stock, etc., and can quickly analyze the recentshipments in case of abnormal delayed arrival and make timelyremedial measures.

Additionally, Zhonggu Logistics fully utilizes information technology, carries out joint scienti?cresearch projects for technological research, promotes the sharing of data and informationbetween railroad and water transport, and develops and puts into use the function ofmultimodal transport "Through B/L System" on the railroad 95306 platform, which can acceptthe whole logistics business of railway and water transport, and has the functions of multimodaltransport bill of lading and issuance, and the whole tracking of goods, Transportation statisticsanalysis and other functions, to realize the schedule and price transparency, to create a moree?cient and intelligent mode of transportation.

The "Through B/L System" online data system can analyze the warehousingcapacity of warehouses through the time-to-delivery, which becomes thereference basis for the quantity of sugar purchased. Through the e?ectivedocking of information system, COFCO Sugar Collective PurchasingProject not only realizes the end-to-end service for customers fromproduction and warehousing to sales and distribution at destination ports,but also continues to optimize the e?cient connection of multimodaltransportation in the process of transportation through the system's dataconnection, which has successfully become the best demonstration of thecharacteristics of the "Through B/L System" data sharing. The system hassuccessfully become the best demonstration of the data sharing feature ofthe "Through B/L System".

COFCO Sugar Collective Mining Project: "Through B/LSystem" Data Sharing Achievements Showcased

Shared Data

The "Through B/L System" analyzes the demand of di?erent sectionsthrough system data, for example, analyzing the warehouse's abilityto ship out through the time of shipment.The "Through B/L System" can provide timely solutions for customersby analyzing the time in transit, and if the time in transit exceeds thecustomers' demand, it can add railroads or other logistics solutionsfor the customer.

Advantages of the "Through B/L System"

Strengthening ESG GovernanceStrengthening ESG Governance

Board ofDirectors

?Make decisions on major ESG issues?Review and analyze the progress related to

attainment of ESG goals?Evaluate and determine ESG risks andsustainable development suggestions

ESG WorkingGroup

?Oversee work related to ESG?Formulate relevant ESG strategies, systems and

management guidelines?Prepare ESG reportsFunctionalDepartments

?Implement work related to ESG

ESG Governance Structure

ESG GovernanceSystemESG Governance Structure

To ensure the implementation and execution of the sustainable development strategyand to ful?ll its commitment to sustainability, Zhonggu Logistics has established athree-tier governance structure consisting of the Board of Directors, an ESG WorkingGroup, and functional departments. This structure ensures the oversight, guidance, andsupport of the Board and management for related work, promoting in-depth sustainabledevelopment governance and institutional construction throughout the group fromtop to bottom. By establishing a clear three-tier governance framework with de?nedresponsibilities, we can e?ectively ensure the smooth progress of ESG initiatives, betteraddress ESG challenges, and integrate sustainable development principles into everyaspect of our business operations, thereby signi?cantly enhancing the company's senseof social responsibility and its capabilities for sustainable development.

Strengthening ESGGovernanceZhonggu Logistics has always adhered to its corporatemission of "changing the way logistics is conductedin China with containers" and has made sustainabledevelopment a long-term strategic goal. By continuouslyimplementing the concept of sustainable development,Zhonggu Logistics has not only achieved commercialvalue but also created long-term sustainable value forsociety.

Strengthening ESG GovernanceStrengthening ESG Governance

During the reporting period, we took into account regulatory requirements, industry trends, and stakeholderconcerns to accurately identify the material issues for the company's sustainable development. In accordancewith the requirements of the "Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of ListedCompanies—Sustainability Report (Trial)" the Company conducted a double materiality assessment. Thisassessment comprehensively examined the potential signi?cant ?nancial impacts (hereinafter referred to as"?nancial materiality") of each material issue on the company's business model, operations, and strategic planningin the short, medium, and long term. It also assessed in depth the signi?cant impacts (hereinafter referred to as"impact materiality") that the company's performance on these issues might have on the economic, social, andenvironmental aspects.

Double Materiality Assessment

Step OneStep TwoStep ThreeIdenti?cation of Material Issues

Conducting the Double MaterialityAssessment

Result Analysis and TargetedDisclosure Enhancement?Construct a clear analyticalframework and establish explicitevaluation criteria based onkey considerations such asdomestic and internationalstandards, industry policies, andregulatory requirements; usevarious methods including peerbenchmarking and stakeholderinterviews to accurately identifypotential material issues for theCompany.

?Impact Materiality: Comprehensiveanalysis of the scale, scope, irreversibility,and likelihood of impact on various issuesthrough surveys and questionnaires frominternal and external stakeholders.?Financial Materiality: Comprehensiveanalysis by senior management of theCompany on the likelihood of risksand opportunities, the continuity ofresource use, and the dependency on therelationship to ongoing operations.

?The Board of Directorsof the Company reviewedand con?rmed the analysisresults. Based on the resultscon?rmed by the Board,the Company conductedinformation disclosure andpractice improvement workin a result-oriented andtargeted manner.

Following the rigorous analysis process outlined above, we have identi?ed a total of 21 material topics. Among theseissues, one topic possesses both ?nancial materiality and impact materiality, that is, double materiality; 1 topic ishighly signi?cant at the ?nancial level; and 6 topics have a high degree of impact materiality.

Zhonggu Logistics Double Materiality Identi?cation Process

StakeholderKey ConcernCommunication MechanismGovernment & regulatoryauthorities

Tax transparencyAnti-corruptionEnvironmental compliance

Information disclosureFeature reportsSpot checksShareholders & investors

Corporate governanceRisk managementMarket performanceEconomic performance

Shareholders' meetingsInformation disclosureSSE E-interactiveRoadshowsSite visits

Employees

Equal employmentDiversity & equity ofopportunityEmployee careTraining & educationOccupational health & safety

Sta? congress meetingsE-schoolEmployee satisfactionsurveysDiscussion & communication

Clients

Client satisfactionClient privacy protectionOptimization of shipoperationSafety management

Client satisfaction surveyCommunication andcomplaint channelsTrade shows & promotionalcampaignsContractors/Suppliers

Responsible sourcingEnvironmental & socialassessment of suppliers

Signing of a contract/agreementSupplier training SummitsCommunities

Community interestEnvironmental complianceGHG emissionWastewater dischargemanagement

News mediaField investigation

Zhonggu Logistics consistently regards stakeholder engagement as a core component ofits sustainable development strategy. We have established a regular and diverse two-waycommunication mechanism tailored to the characteristics of di?erent stakeholders, conductingsystematic dialogues through various channels that cover core groups such as government andregulatory agencies, shareholders and investors, employees, customers, suppliers, and community/environment representatives.Through regular or special communications, we focus on six major dimensions: economy,corporate governance, environment, employee rights, supply chain management, and communitydevelopment. We systematically gather the core demands of stakeholders and incorporate them intostrategic planning. This mechanism not only ensures the accurate transmission of various parties'concerns but also promotes the co-creation of multi-party value and the achievement of sustainabledevelopment goals by continuously optimizing ESG practices.

Stakeholder Communication

Strengthening ESG GovernanceStrengthening ESG Governance

Zhonggu Logistics is deeply integrated into the United Nations' 2030 Agenda for SustainableDevelopment, actively responding to the 17 Sustainable Development Goals (hereinafterreferred to as “SDGs”), and fully incorporating them into its sustainable developmentstrategic framework. When formulating ESG strategies, the Company focuses on the core issuesof the logistics industry, promoting the precise alignment of sustainable development goalswith business practices through systematic planning and resource integration. This strategynot only re?ects substantial support for the global vision of sustainable development but alsocontributes corporate strength to building an inclusive, low-carbon global supply chain systemthrough industry innovation and responsible practices.

CategoryTopics

ImpactMateriality

FinancialMaterialityEnvironmentClimate Change●●●●●●EnvironmentEnvironmental Compliance●●●●●○

SocialInnovation●●●●●○GovernanceStakeholder Engagement●●●●●○SocialData Security and Customer Privacy●●●●●○SocialProduct and Service Safety and Quality●●●●●○SocialSupply Chain Security●●○●●○SocialTechnology Ethics●●○●○○EnvironmentWaste Management●●○●○○GovernanceAnti-Commercial Bribery and Anti-Corruption●●○●○○SocialEmployee●●○●○○GovernanceAnti-Unfair Competition●●○●○○EnvironmentEmission of Pollutants●○○●○○GovernanceDue Diligence●○○●○○EnvironmentCircular Economy●○○●○○EnvironmentEnergy●○○●○○EnvironmentWater Resource●○○●○○EnvironmentEcosystem and Biodiversity●○○●○○Social

Equal Treatment of Small and Medium-sizedEnterprises

●○○●○○

SocialPublic Welfare●○○●○○

SocialRural Revitalization●○○●○○

Results of the Double Materiality Analysis for Material Topics

Response to SustainableDevelopment Goals

Strengthening ESG GovernanceLeading in Low-carbon Shipping

Zhonggu Logistics has set up astructured safety and health system.We boost sta? safety awarenessand emergency response skills withcomprehensive training. The ZhongguCare Fund also o?ers ?nancial aid,spending 59,000 RMB this year.Zhonggu Logistics has e?cientlyimplemented a tiered training plan,completing management training,executive courses, and a standardizedsystem for new hires, along withteaching materials. This aligns talentdevelopment with business growth.Zhonggu Logistics prioritizes workplaceequity, ensuring a level playing ?eldfor career advancement. The Companyutilizes varied recruitment channels,upholding diversity and fairness,and consistently refreshing its hiringstrategies.Zhonggu Logistics has developed aholistic water management systemencompassing extraction, storage, use,and treatment. It enables scienti?coversight and centralized control of allinternal water projects.Zhonggu Logistics follows nationalenvironmental policies, adoptingmeasures to reduce fuel consumption.It has created a unique fuel e?ciencymodel that promotes the shippingindustry's green shift and builds asustainable operation system.Zhonggu Logistics enhances itscompensation system with a dynamicincentive model focused on skills andperformance, informed by marketbenchmarks. It also implements afeedback system to align employeegoals with evaluation metrics, fosteringtalent and organizational growth.Zhonggu Logistics boosts digitaloperations, using info managementto drive tech innovation in shipping,enhancing e?ciency.

Zhonggu Logistics upholds fairemployment, fostering an inclusiveworkplace with equal opportunities. Weuse a strategic talent system to ensurediversity, enhancing our organization'sinnovation and vitality.

Zhonggu Logistics boosts communitywelfare, with 774 sta? in volunteeractivities and a 46,756 RMB spend onsocial initiatives.Zhonggu Logistics has re?ned itscontainer management system, focusingon both system management and routemanagement to ensure quality control,safeguarding the safety and e?ciency ofall freight logistics segments.Guided by green shipping goals,Zhonggu Logistics adheres to global andlocal emission norms. The Companyenhances its ?eet's eco-performanceand reduces emissions by optimizingship design, improving energy tech, andapplying eco-friendly coatings.Driven by technological innovation andmanagement optimization, ZhongguLogistics has carried out water-savingtechnology improvements and recyclingof wastewater, comprehensivelyenhancing the e?ciency of waterresource utilization on ships and theirenvironmental friendliness.Zhonggu Logistics strengthens governanceand anti-corruption e?orts, focusing onsupplier integrity training to supportsustainable development.

Zhonggu Logistics enforces atransparent bidding process, ensuringfair procurement and lawful supplierpartnerships.

SDGs

Response action ofZhonggu Logistics

SDGs

Response action ofZhonggu Logistics

Leading in Low-carbon ShippingGreen development has always been the core strategy of ZhongguLogistics, which actively leads the new era of low-carbon shipping. In theface of the severe challenge of global climate change, Zhonggu Logisticshas always taken China's "dual carbon" goal and the InternationalMaritime Organization (IMO) 2050 decarbonization goal as the lead,continuously improved the climate change management system, andintegrated the low-carbon concept into the entire operation process. Wecontinue to optimize ship energy efficiency, explore green technologyinnovation, provide customers with e?cient and environmentally friendlytransportation solutions, and promote the green transformation of theshipping industry through practical actions.

Leading in Low-carbon ShippingLeading in Low-carbon Shipping

Under the premise of strictly complying with environmental management compliance requirements, ZhongguLogistics takes science and foresight as the orientation and actively explores e?ective ways to alleviate climateand environmental pressure. We have built a complete climate change governance system and, based on therecommendations of the Task Force on Climate-related Financial Disclosures (TCFD), systematically identifythe risks and opportunities brought by climate change to formulate scienti?c climate response strategiesand action paths. In addition, we have established several climate change response indicators, achievedquantitative assessment and accurate review through continuous monitoring and trend analysis, and ensuredthe e?ectiveness and sustainability of response measures.

Climate Change Management

Zhonggu Logistics has developed a systematic climate change management strategy. Based on climate scenarioanalysis, the Company identi?es and assesses climate-related risks and opportunities, categorizing them into short-term (0-3 years), medium-term (3-10 years), and long-term (over 10 years). Additionally, in response to the identi?edrisks and opportunities, the Company has formulated management strategies and plans to ensure that climate riskmanagement progresses in tandem with business development.

Strategy of Climate Change Governance

We integrate the management functions related to climate change into the Company's three-level ESGgovernance structure and build a transparent communication mechanism to ensure e?cient collaborationbetween each management level, thereby continuously improving the e?ectiveness of climate changegovernance.

Climate Change Governance

Board ofDirectors

?Decision-making on key matters related to climate risks andopportunities?Review and critique progress on climate change related objectives?Assessment and identi?cation of relevant climate risks andopportunities and response strategiesESG WorkingGroup

?Oversee climate change related work?Develop strategies to address climate risks and opportunities

FunctionalDepartments

?Identify the risks and opportunities related to climate change?Conduct work related to strategies to address climate risks and

opportunities

Risk categoryRisk nameRisk description

Potential?nancial impacts

Responsestrategy

Physical

risks

Acute risks

Tsunami,rainstorm andother naturaldisasters

It can easily cause damage toshipping infrastructure, includingthe destruction of port facilities,while also posing direct threats toship structural safety, cargo, andcrew members.

Increasedoperational costs:

Impairment, write-o?s, and earlyretirement of existingassets.Heightenedchallenges intransportation.

Conductingfuture weatherresearch andforecasting inadvance.Developingemergencyresponseplans for acuterisks, such asthe TyphoonPreparednessand ResponseGuidelines.Conductingemergency drillsfor extremeweatherscenarios.Extreme weatherconditions suchas typhoons andcyclones

Strong winds and cyclones,etc. will a?ect the navigationalperformance of ships, includinglowering their speed anddeviating from their course. Inport operations, strong windswill directly a?ect the berthingsafety of ships, which may leadto longer waiting time at berthsor interruption of operations,increasing the uncertainty of cargodelivery.

Increasedoperational costs:

Impairment, write-o?s, and earlyretirement of existingassets.Heightenedchallenges intransportation.

Chronicrisks

Global averagetemperature rise

Continuously rising averagetemperatures and changes inextreme wind speeds will notonly change the seaworthinessof traditional routes but mayalso force shipping companies toadjust sailing time windows androute network layouts.

Higher operatingcosts:

Changes in shippinglanes result inincreased fuel usageand time costs.

Planningalternate routes.Exploring thedirection of high-e?ciency fuelor future newenergy fuel.Activelypromoting theapplication ofgreen shippingtechnologyand indirectlyprotectingthe ecologicalenvironment ofwater transportthroughmeasures suchas hull designoptimization.

Sea level rise

Rising sea levels will pose amajor threat to coastal portinfrastructure, with ports locatedat low elevations, in particular,at risk of inundation. Suchgeographic changes will lead tothe permanent failure of someport facilities, forcing shippingcompanies to re-engineer theirglobal route networks, increasingdetour distances and fuelconsumption, and signi?cantlypushing up operating costs.

Higher operatingcosts:

Changes in shippinglanes result inincreased fuelusage and timecosts, impairmentof existing assets,write-o?s and earlyretirement.Oceanacidi?cationand damageto marinebiodiversity

Ocean acidi?cation will acceleratethe rate of corrosion of ship hulls,port infrastructure and relatedinfrastructure and facilities,resulting in higher maintenancecosts for The Company.

Higher operatingcosts: increasedmaintenance costs.

Structure of climate change governance

Leading in Low-carbon ShippingLeading in Low-carbon Shipping

Risk categoryRisk nameRisk description

Potential?nancial impacts

Responsestrategy

Transitionrisks

Policy andlegal risks

Requirementsand regulatoryshifts

Climate change-relatedlegislation is being progressivelystrengthened globally. TheChinese government hascontinued to promote greenshipping, support the low-carbontransformation of the shippingindustry, and strengthen theenergy use requirements forenterprises. At the same time, IMOhas put forward the requirementof continuous reduction ofcarbon emission intensity in theinternational shipping industryin the IMO Initial Strategy forGreenhouse Gas EmissionReduction from Ships. In addition,the introduction of some nationallaws and regulations or restrictiveclauses on climate change andthe ecological environment hasresulted in certain restrictionsor impacts on The Company'soperations such as its oceanfreight forwarding business,which may give rise to some legalproceedings risks

Higher operatingcosts:

Increased penaltiesdue to elevatedcompliance risk.

Continuouslymonitoringpossible policyand regulatorytrends andconductingtimely learningand training.Taking measuresto reduceexhaust gaspollution, suchas installingnitrogen removaldevices.Laying out thecarbon marketin advance andconductingresearchon internalcarbon pricingmechanism.Activelypromotinggreen energytransformationand exploreinggreen fuel forships.

Policy andlegal risks

Carbon Marketsand CarbonTrading

After the opening of the nationalcarbon market, the price ofcarbon trading may increase,which in turn will a?ect TheCompany's internal environmentalmanagement and businessdecisions and operating costs.

Higher operatingcosts:

Carbon abatementcosts rise.

Control of airpollution fromships

In 2018, China's Ministryof Transportation andCommunications (MOTC) issuedthe Implementation Plan for ShipAir Pollutant Emission ControlAreas. The new Guidelines for theSupervision and Management ofAir Pollutant Emissions from Shipswill come into force on January1, 2020, which puts forward newrequirements for the statistics andsupervision of air pollution fromships.

Higher operatingcosts:

Increased penaltiesdue to elevatedcompliance risk.

Marketrisk

Rising energyprices

Higher carbon tax costs oncrude oil and the application offuel cleaner technologies haveincreased the price of fuel oil.

Higher operatingcosts:

Higher fuel prices.

Activelypromoting greenenergy transitionand exploringgreen fuel forships.Studying theextent of greenconsumptionshift in themarket.Changes inCustomerBehavior

Customers are making demandsrelated to the reduction of carbonemissions in containerizedtransport operations or preferringenergy-based transport servicesthat produce no or fewer carbonemissions.

Revenues are down:

Decline in demandfor services.

Risk categoryRisk nameRisk description

Potential?nancial impacts

Responsestrategy

Transition

risks

Technologyrisk

Research anddevelopment ofenergy-savingand emissionreductiontechnologies

Without systems or newtechnologies to replace traditionalfuels, The Company could beimpacted by increases in fossil fuelprices and regulatory compliance.

Higher operatingcosts: Increased R&De?orts and higherR&D costs.

Activelypromotinggreen energytransformationand exploringgreen fuel forships.

Reputationalrisk

Disclosure ofinformation relatingto environmentalperformance

Investors, regulators, customersand other stakeholders aredemanding higher disclosurerequirements from the shippingindustry in addressing climatechange. If management is notcompliant or environmentalperformance disclosure is notthorough, it will a?ect corporatereputation and damage corporateimage.

Revenues are down:

Decline in demandfor services.

Continuouslydisclosingsustainabilityinformationand improvingthe level ofdetail of its owndisclosure.

Intense inter-firmcompetition forenvironmentalperformance

Investors and customers maychoose competitors with betterenvironmental performance,resulting in lower revenues for TheCompany

Revenues are down:

Decline in demandfor services.

Activelyimprovingour ownenvironmentalperformance andcontinuing towork on energyconservationand emissionreduction.Zhonggu Logistics adheres to the strategic mindset of "turning challenges into opportunities" and has establisheda systematic mechanism for identifying and assessing climate-related opportunities. Against the backdrop ofaccelerating global climate governance, the Company deeply recognizes that climate change is not only a challengebut also a strategic opportunity. We precisely seize the market opportunities brought by the climate transition,focusing on emerging ?elds such as green shipping. Through forward-looking business strategies and innovativeservice models, we continuously enhance our core competitiveness in the green logistics sector.

Opportunitytype

Climate-relatedopportunities

De?nition of opportunitiesResponse strategyEnergysources

Transformation of

the energy mix

There will be more green energy possibilitiesfor the shipping industry in the future, suchas green fuels and expansion of shore powerinstallations.

Continuously strengthening the green shipsystem to ensure business continuity byincreasing the use of renewable energy.

Resourcee?ciency

Resourcee?ciency gains

The "bulk-to-container" and "ThroughB/L System" modes of transportationwill enhance resource e?ciency in thetransportation process, for example, byreducing packaging losses of materials.

Continuously exerting the advantagesof intelligent asset scheduling and bulk-to-machine transportation to graspthe opportunities of green logisticstransformation in the mode of resourceintensi?cation.

Products andservices

Low-carbonproduct andservice innovation

As the global low-carbon requirementsfor businesses become more stringent,customers will favor green products andgreen markets in the future.

Researching low-carbon products,continuing to promote the "Through B/L System" transportation model, andcontinuing to disclose its low-carbonperformance.

Leading in Low-carbon ShippingLeading in Low-carbon Shipping

Zhonggu Logistics has established a systematic climate change risk management mechanism by incorporating theclimate change risk management system into the Company's overall risk management framework. The Companyhas established a full-process management system from risk identi?cation, assessment to response, ensuringthat all kinds of climate risks are under control. In terms of physical risk management, the Company adopts adual guaranteed strategy of "system + technology". On the one hand, it improves the organizational structure andsystem of risk management, and on the other hand, it strengthens technological investment and facility upgrades,e?ectively ensuring the stable operation of business. At the same time, the Company fully leverages its own technicaladvantages, deeply integrates the low-carbon development concept into product research and developmentand service innovation, actively grasps the development opportunities brought by climate change through thedevelopment of green ships and green shipping solutions, and continuously promotes the green transformation ofthe shipping industry.

Risk Management

IndicatorUnit20242023ChangesCategory 1 Total GHGemissions

Ton of CO2equivalent

807,147.241,005,206.41-19.70%Category 2 Total GHGemissions

Ton of CO2equivalent

2,716.651,765.6453.86%Total GHG emissions

Ton of CO2equivalent

809,863.891,006,972.05-19.57%GHG emissions intensity

Ton of CO2equivalent/ millionRMB

71.9480.95-11.14%Total direct energyconsumption

kWh3,075,916,402.693,745,413,597.62-17.88%GasolinekWh1,436,680.231,622,251.42-11.44%DieselkWh242,131,725.18310,356,964.81-21.98%Low sulfur fuel oilkWh2,806,590,130.453,409,340,532.30-17.68%Lubricating oilkWh25,757,866.8324,093,849.09-6.91%Total indirect energyconsumption

kWh5,062,713.691,678,000.00201.71%Purchased electricity

kWh5,062,713.691,678,000.00201.71%

The emission factor used there is the national average carbon dioxide emission factor for electricity of 0.5366kgCO2/kWh withinthe Announcement on the Publication of CO2 Emission Factors for Electricity in 2022 issued by the State Ministry of Ecology andEnvironment on 26 December 2024

The scope of the 2024 purchased electricity data has been optimized and revised from previous year. The scope of the 2024 dataincludes total purchased electricity for ship production and operation and total purchased electricity for o?ce administration.

Zhonggu Logistics has incorporated climate change-related indicators into the scope of data collection andmanagement, and regularly discloses relevant data to enhance information transparency. During the reportingperiod, the climate change-related indicators are as follows:

Metrics and Targets

Opportunity

type

Climate-related

opportunities

De?nition of opportunitiesResponse strategy

Market

Marketingand customerdevelopment

Compared to other transportation methods,such as air freight, road transport, and railtransport, shipping demonstrates superiorperformance in reducing CO

emissionsper ton-kilometer. Additionally, shippingexhibits higher adaptability to certainextreme weather conditions, such as heavysnowfall. As a result, as customers gain adeeper understanding of their own needs, anincreasing number of them may shift theirtransportation preferences toward shipping.

Continuously promoting transportationmodels such as "bulk-to-container" and" Through B/L System ", while activelyexpanding customer needs to meet theirdemands for a greener market.

Resilience

Increased supplychain resilience

The " Through B/L System " transportationmodel will enhance supply chain e?ciencyand resilience, while also promoting datasharing across the supply chain.

Deepening supply chain collaboration andworking jointly with supply chain partnersto improve logistics e?ciency and drivethe green transformation of the shippingindustry.

?Zhonggu Logistics has established asystematic climate risk emergency managementsystem. By formulating and implementingspecialized plans such as the Ship/ShoreEmergency Manual and the Instructionson Typhoon Prevention and Resistance,the company has built a comprehensivemechanism to respond to extreme weatherconditions. Regular emergency drills andtraining sessions are conducted to ensure thee?ective implementation of all preventivemeasures. Through the adoption of proactivemanagement practices, the company hase?ectively safeguarded crew safety, vesselintegrity, and cargo security, providing reliablesafety assurance for business operations andensuring the stable functioning of its servicenetwork.

Institutional guarantee

?The Company sets up emergency responseteams for extreme weather, such as typhoons,and holds meetings on typhoon prevention tocarry out analysis and noti?cation of typhoonsand release them in the typhoon preventionwork group. After the extreme weather, themarine supervisor promptly follows up the shipto check the damage, summarizes and reportsto the typhoon prevention group, and theengine supervisor arranges to guide the ship torepair and provide necessary support.

Emergency management

?On ocean routes, the Company innovativelyintroduced professional meteorologicalnavigation services, and built an intelligentroute optimization system through cooperationwith internationally renowned meteorologicalagencies, which e?ectively avoided navigationalrisks brought by extreme weather, such astyphoons and rainstorms, and signi?cantlyenhanced the operational e?ciency of thevessels. During the reporting period, theCompany's ?eet achieved a safe operationrecord of zero meteorological accidents,laying a solid foundation for the continuousimprovement of shipping safety managementlevel.

Technical guarantee

?Promote green ship design and protectthe marine ecosystem by optimizing thelongitudinal inclination of ships and usingharmless paints.

?Enhance energy e?ciency and reduce energyconsumption and emissions by increasing theinstallation rate of shore power equipment onships.

Energy e?ciency improvement

Leading in Low-carbon ShippingLeading in Low-carbon Shipping

Low-carbon Sailing

PMS System：Planned Maintenance System, which is a computerized management system used in shipmanagement to plan and perform equipment maintenance.

Zhonggu Logistics has established a low-carbon management system that covers the entire value chain, integratingthe concept of green ships into strategic planning, operational management and organizational culture construction.In terms of emission reduction practices, the Company uses technical means such as speed optimization androute planning to signi?cantly improve the energy e?ciency of ships. At the same time, the Company promotes agreen o?ce plan involving all employees, achieving dual improvements in environmental bene?ts and operationale?ciency.

Zhonggu Logistics always adheres to the operation concept of "green ship", takes "whole life cycle greenmanagement" as the guidance, and builds a systematic green ship operation system. Through multi-dimensionalelements such as ship design optimization and environmental protection paint use, it continuously promotes thegreen upgrade of ship performance.

Green Ships

?Adoption of S-BOW bow for better speed and wave resistance.?Optimize the longitudinal inclination of the ship to save fuele?ectively.?Use of harmless paints to protect the marine environment.Green designfor ships

?The latest version of the main engine is equipped with a shaft-holding axle generator, which provides better fuel-e?ciencyperformance for the vessel.?Adoption of energy-saving facilities such as high-e?ciencypropellers, anti-vortex ?ns, energy-saving pre-rotation ductsand ?ap rudders, etc., to enhance the ship's energy-e?ciencyperformance.Green designfor mechanicalsystem

?Improve the installation rate of shore power equipment onexisting vessels and require vessels to prioritize the use of shorepower during berthing in domestic ports in order to reduce thefuel consumption of vessels.?As of the end of the reporting period, 47 of the 49 vessels ownedby CGC Logistics had completed the installation of shore powerequipment.Green designfor energysystem

?Relying on the PMS system

to monitor and timely eliminate allkinds of running, risking, dripping and leaking phenomena of oil,water and gas, and reduce the resulting energy waste.Green designfor industrialsoftware

Green Ship System

Zhonggu Logistics has established a systematic energy management system, taking fuel e?ciency management asthe core approach to achieve low-carbon transformation in shipping. The Company innovatively constructed a three-in-one fuel e?ciency improvement plan of "system + technology + management": at the system level, it formulatedthe Energy Management System and theZhonggu Logistics Fuel Management Measurescovering the entire ?eet,implementing full life cycle management of the fuel supply chain; at the technical level, the Company used the shipmonitoring system to optimize routes in a timely manner, achieving re?ned management of fuel; at the managementlevel, the Company took multiple measures to save fuel use, forming a fuel e?ciency management model withZhonggu characteristics, further promoting the green transformation of the shipping industry.

In the ?eld of green ship technology innovation, Zhonggu Logistics has made a breakthrough by implementing thetrim optimization project

, which has pioneered a new model for energy conservation and emission reduction inthe shipping industry. By December 31, 2024, this project had saved 744.968 tons of fuel for the Company through?ne management and technological innovation, signi?cantly reducing carbon emission intensity. At the same time,Zhonggu Logistics has established a complete database and operating procedures, providing valuable technicalreserves for the subsequent operation of self-operated ships on domestic trade and foreign trade routes. Thisinnovative practice not only demonstrates Zhonggu Logistics' technical strength in the ?eld of green shipping, butalso provides replicable low-carbon solutions for the industry, e?ectively promoting the sustainable developmentprocess of the shipping industry.At the same time, in the maintenance and maintenance of ships, Zhonggu Logistics strictly implements the greenand environmental protection concept, establishes a strict paint procurement and use standard system, andcomprehensively adopts environmentally friendly harmless paints. In the process of ship dock repair and dailymaintenance, we give priority to the selection of low VOC (volatile organic compounds) content of environmentalprotection paint, which signi?cantly reduces the impact of harmful substances on marine ecology.Fuel Management

The trim optimization project refers to adjusting the ship's draft depth and the di?erence between the fore andaft drafts (trim angle) in the water to alter the ship's hydrodynamic characteristics, thereby reducing navigationresistance and improving fuel e?ciency.

?We have formulated theFuel Oil Quality Control Management Program (Trial)to strictly controlfuel quality from the source. All oil products shall be sampled and monitored by the authority,and tested 24 hours before formal use to ensure fuel e?ciency.

Procurement: fuel control

?We have compiled theManagement System for Equipping, Calibration, Use and Maintenanceof Measuring Instrumentsto standardize the measuring operation and management of tools. Ouroil measurement personnel boards the vessel to conduct the measurement, preventing the fuelwaste caused by reasons such as fuel storage error or inaccurate measurements.

Bunkering: accurate gauging

?We have formulated many rules and policies such as theInstructions on Ship and EquipmentMaintenance, the Instructions on Management of Spare Parts and Materials of Ships andthe Instructions on Ship FuelManagement to re?ne management and maintenance of shipconditions, eliminate fuel waste caused by evaporating, emitting, dripping or leaking of ship fuel.

Storage: maintenance

Leading in Low-carbon ShippingLeading in Low-carbon Shipping

Zhonggu Logistics actively practices green o?ce and takes the initiative to build a concept and atmosphere ofgreen and low-carbon participation for all employees within The Company. The Company not only systematicallytransforms its o?ce premises into green ones, but also instills the concept of green o?ce in all employees in dailyo?ce management. During the reporting period, Zhonggu Logistics further promoted green o?ce measures andendeavored to root the concept of low-carbon environmental protection in the daily work of every employee.

Green O?ce

Zhonggu Logistics regards environmental compliance management as the cornerstone of sustainabledevelopment and has established a multi-level environmental risk prevention and control system. The Companystrictly follows international regulations such as theInternational Maritime Organization (IMO) Convention,the International Convention for the Prevention of Pollution from Ships (MARPOL), and the anti-pollutionconvention, as well as environmental protection laws and regulations in the places where it operates, to build acomprehensive environmental management system covering resource management, exhaust gas management,waste management, etc.

Ecological Co-construction

Water resource management is the core link of Zhonggu Logistics' implementation of the ecological prioritystrategy. The Company has formulated theShip Water Resource Management Planand theImplementation Planfor Reducing Freshwater Consumption of Domestic Trade Shipsinternally and established a full-process waterresource management system covering water intake, storage, use and sewage treatment. At the same time, theCompany strictly controls the waste of water resources caused by equipment leakage, and actively cultivates thewater-saving awareness of crew members. In 2024, our total amount of water circulation and reuse reached 455tons.

Water Management

The comprehensive and systematic ship energy consumption management system has brought signi?cant bene?tsto Zhonggu Logistics' energy conservation and emission reduction work. During the reporting period, the fuelconsumption per 100 nautical miles of Zhonggu Logistics' self-operated ?eet was 8.04 tons/100 nautical miles, adecrease of 7.2% compared with 2023.

?We have formulated many rules and policies such as the Instructions on Ship and EquipmentMaintenance, Instructions on Management of Spare Parts and Materials of Ships and Instructionson Ship Fuel Management to re?ne management and maintenance of ship conditions, eliminatefuel waste caused by evaporating, emitting, dripping or leaking of ship fuel.

Usage: route optimization

?In daily fuel consumption management, the company analyzes the consumption statisticscurve, carries out timely examination of abnormal consumption to avoid waste of fuelconsumption, and carries out carbon intensity tracking and management for ships oninternational routes.

Supervision: Examination of Abnormalities

Management Process of Ship Energy Consumption

PaperManagement

?The Company o?ceuni?ed managementof o?ce printingequipment, requiringemployees to usedouble-sided printing asfar as possible to avoidpaper waste.

ElectricityManagment

?Call on employees toturn o? the electricitywhen not reqiured..?Power supply in theo?ce area is divided intozones, and the numberof lights is appropriatelyreduced for overtimework on holidays.

WaterManagement

?Adopt induction watercollection for handwashing, stopping whennot in use, e?ectivelyavoiding the waste ofwater resources.

Business TripManagement

?Encourage employeesto give priority tohigh-speed rail, train,subway and other publictransportation to reducecarbon emissions duringtravel.

Green O?ce Management

Leading in Low-carbon ShippingLeading in Low-carbon Shipping

?Re?ned management:

Through process analysis,review and summary,wehave reduced the slag yieldof residues after cookingoily sewage, implementingthe system of accountabilityfor ships that exceed thestandards.?Emission supervision:

For the discharge of oilywastewater, each vessel forforeign trade is equipped withan oil-water separator and a 15PPM monitor. For the purposeof traceability, the ?eet timelyrecords the discharge ofoily wastewater in the OilyWastewater Logbook, andthe maintenance departmentregularly inspects the ship'swastewater control facilitiesonboard.?Optimization andrecti?cation:

The Company activelyseeks problems throughinterviews on all our self-owned vessels to check thegeneration,management anddischarge of oily wastewaterfrom ships, and proposerecti?cation measures for theproblems found.

Oil wastewater

management

?Reasonable planning:

In accordance with theInternational Convention onthe Control and Managementof Ships' Ballast Water andSedimentsissued by theIMO, Zhonggu Logistics hasdeveloped ballast waterrelatedmanagement plans to ensurecompliance in terms of ballastwater.?Technical upgrade:

All of the Company's currentballast water treatmentsystems adopt the technicalmeans of mechanicaltreatment (?ltration) andphysical treatment (nitrogenasphyxiation method) tocontinuously improve thee?ciency of ballast watertreatment.?Certi?cation guarantee:

All ships of the Companyhave complied with the D-2standard (Biological andHygienic Standards for ShipBallast Water Treatment)since 2017, and all ship ballastwater treatment systems arein compliance with USCGcerti?cation.

Ballast watermanagement

?Storage compliance:

Our vessels are equipped withdomestic wastewater storagetanks and the o?-board directsea valve is cut o? to eliminatenon-compliant storage.?E?cient disposal:

All domestic wastewatermust be treated by domesticwastewater treatmentdevices. We regularly cultivatemicroorganisms and applydisinfectant tablets to reducethe pollutants in domesticsewage.?Emission control:

The domestic wastewater isdischarged into the sea 12nautical miles away after beingpulverized in strict accordancewith the discharge raterequirements. The quali?eddomestic wastewater afterbiochemical treatment maybe pulverized and dischargedto places 3 nautical mileso?shore according to thedischarge rate. In waters wheredischarge is not allowed, suchas the inland sea of China, anywastewater is taken back toshore for disposal.

Domestic sewagemanagement

CategorySubcategoryUnit20242023Change

Waterconsumption

Total waterconsumption

ton96,470.00101,562.70-5.01%Water intensity

ton/RMB

million

8.578.165.01%

During the reporting period, our water consumption and discharge were as follows:

?Implementing a cross-secctionalcomparasion among ships in thewater consumption, we've identi?edthe measures for reducing freshwateruse and taken such measures in the?eet. We usually used river waterto clean the decks of our ships toreduce the freshwater consumption.

Less freshwater

consumption

?Each vessel of Zhonggu Logisticsis equipped with a freshwatergenerator during internationalvoyages, the distilled water isstored in a freshwater tank for dailylife, engine-room equipment andcooking.

Seawaterdesalination

For wastewater management, Zhonggu Logistics strictly complies with laws and regulations such as theWaterPollution Prevention Law of the People's Republic of China, theMarine Environmental Protection Law of the People'sRepublic of China, theRegulations on the Prevention of Marine Environmental Pollution by Ships, the EmissionStandards of Pollutants from Ships, and the International Convention for the Prevention of Pollution from Ships, andimplements the requirements for compliance discharge and treatment of vessel wastewater. We classify domesticwastewater and engine room sewage of vessels and establish strict management systems and comprehensivecompliance guarantees to avoid pollution of the marine environment.

Watewater Management

Leading in Low-carbon ShippingLeading in Low-carbon Shipping

CategorySubcategoryUnit20242023Change

Waste

Total amount of non-hazardous waste

Ton418.00675.20-38.09%Non-hazardous wasteemission intensity

Ton/million

RMB

0.040.05-25.74%Total amount ofhazardous waste

Ton1309.341,551.00-15.58%Hazardous wasteemission intensity

Ton/million

RMB

0.12

0.120%

CategorySubcategoryUnit20242023Change

Wastewater

Production wastewaterTon12,110.6011,858.202.13%Domestic wastewaterTon4,807.002,296.54109.31%Total amount ofwastewater discharge

Ton16,917.6014,154.7419.52%Wastewater dischargeintensity by revenue

Ton/million

RMB

1.501.1431.81

During the reporting period, our water consumption and discharge were as follows:

The main reason for the increase in domestic wastewater in the reporting period was the increase in the numberof owned o?ce premises in various branches.

The total amount of wastewater discharge contains production wastewater and domestic wastewater, of which theproduction wastewater is only the production wastewater generated in the process of ship transportation that doesnot meet the emission regulations, and other production wastewater in the grain ?ow are in strict compliance withthe relevant national laws and regulations, and are discharged into the ocean after treatment and compliance withthe discharge conditions.

Zhonggu Logistics has established a systematic air pollution prevention and control system, strictly adheringto theLaw of the People's Republic of China on the Prevention and Control of Atmospheric Pollution, and theImplementation Plan for Ship Air Pollutant Emission Control Area. The Company innovatively formulated the

Implementation Guidelines for Air Pollution Emission Control Areas in Chinese Waters for Ships. Through acomprehensive management approach of "source control + process optimization + end treatment," ZhongguLogistics has signi?cantly reduced the impact of ship operations on air pollution in port cities and coastal areas.

Waste Gas Management

?Use of low-sulphur fueloil to reduce emissions ofsulphur dioxide and otherair pollutants.

Source control

?Regular maintenance ofthe oil separator and headerexhaust valves to ensureadequate combustion andreduce harmful emissions.

Processoptimization

?Installation of nitrogenremoval devices to ensurecompliant emissions ofexhaust gases.

End-to-endgovernance

Management Process of waste gas

Our waste gas emissions during the reporting period are as follows：

CategorySubcategoryUnit20242023Changes

Wastegas

Nitrogen oxideTon21,005.8125,517.07-17.68%Sulfur oxidesTon2,414.463,690.00-34.57%Particulate matterTon519.66631.26-17.68%Total waste gasemissions

Ton23,939.9343,115.06-44.47%Waste gas emissionintensity by revenue

Ton/million

RMB

2.133.47-38.72%

Zhonggu Logistics installed denitri?cation devicesIn August 2024, Zhonggu Logistics retro?ted threeof its 4600-series vessels, namely the "ZhongguWuhan," "Zhonggu Nanchang," and "ZhongguChengdu," with denitri?cation devices at COSCOShipping Heavy Industry in Shanghai. This initiativeaimed to ensure compliance with relevant emissionregulations and meet the required environmentalstandards.

Denitri?cation Devices Installation

Zhonggu Logistics strictly adheres to domestic regulations such as theEnvironmental Protection Law ofthe People's Republic of China, theEnergy Conservation Law of the People's Republic of China,theMarineEnvironmental Protection Law of the People's Republic of China，as well as international standards like theInternational Convention for the Prevention of Pollution fromShips (MARPOL). The Company has establishedinstitutional guidelines such as the Instructions for Ship Pollution Prevention and Management, the PollutionPrevention Codes to ensure systematic and regulated management. Additionally, we require all vessels to rigorouslyimplement theShip Garbage Management Plan, ensuring precise classi?cation of waste oil, domestic garbage, andother types of waste to enhance waste management e?ciency.For oily hazardous wastes such as sludge and dirty oil, we do the decommissioning through quali?ed receivingunits. At the same time, we carry out on-site supervision and measurement of dirty oil and water removal by theFuel Oil Supervision Department to prevent the loss of normal fuel oil. In the agreements signed with suppliers, weemphasize formal operation to prevent pollution of dirty oil and fuel oil theft and sale, and to avoid potential harmto the environment. As of the end of the reporting period, we safely removed a total of 2,684 cubic meters of dirtyoil and water without any violation of the law.For the remaining general waste, we strictly followed the regulations to categorize and decommission it forreceiving and disposal. During the reporting period, our waste discharge was as follows：

Waste Management

Non-hazardous waste consists of ship solid waste recycling decommissioning and o?ce and household waste.

Hazardous waste includes oil sludge and batteries, with the latter starting to be counted for the ?rst time in 2023.

Deeply Exploring Customer ValueDeeply Exploring Customer Value

Relying on a standardized operation and management mechanism, Zhonggu Logistics is ?exible in responding to thenew trend of market changes. We are actively expanding diversi?ed routes, continuously improving service qualityand optimizing customer experience, and are committed to providing customers with green, e?cient, safe andconvenient all-round logistics services.

Based on the Zhonggu Logistics information platform, we have built a full-process transport service from bookingto picking up cargos. Relying on the independently developed theZhonggu Logistics Intelligent InformationManagement System, we have achieved seamless integration and intelligent dispatching of shipping, railway, roadand other modes of transport. Through the visualized tracking platform and electronic document system, customerscan grasp the dynamics of goods in transit in real time and complete the whole process of online business operation.Based on the data-driven transport path optimization model, we dynamically match capacity resources withcustomer demand, e?ectively improve timeliness and delivery certainty, building a transparent, controllable andtraceable digital supply chain ecosystem for our customers while lowering comprehensive logistics costs.

Diversi?ed Routes

Building Excellent Service

Deeply ExploringCustomer Value

With the corporate mission of "Change the Logistics Pattern in China by Containers", driven by globalization andindustrial upgrading, we build an intelligent logistics system with standardized containers as the core carrier, andbased on the Internet of Things, big data and other cutting-edge technologies, we create a safe, reliable, e?cient,accurate and environmentally friendly Through B/L System intermodal transport solution for our customers. Throughcontinuous optimization of digital operation network and intelligent service process, we deeply integrate scienceand technology innovation into each link of the supply chain, strive to improve the e?ciency of resource allocationand the level of low-carbon operation, and are committed to creating a new supply chain paradigm with long-termcompetitiveness and ecological value with our customers.

Intermodal Transport Business Model

Information ?ows: vessels, ports, corporatesystems, mobile connectivity

Cash ?ow: across the container logisticsservice chainLandtransportation

Watertransportation

Landtransportation

Picking upRail Rail Maritime Shipping Road RoadRiver TransportBookingPacking

Deeply Exploring Customer ValueDeeply Exploring Customer Value

Domestic trade routesAs of the end of the reporting period, Zhonggu Logistics had established a domestic trade route networkcovering the coastline and major river basins, forming a three-dimensional shipping network layoutcovering coastline and inland trunk lines of China, speci?cally including more than 60 coastal trunklines, more than 30 Yangtze River Basin routes and more than 160 Pearl River Basin routes. The networkradiates 25 core coastal hub ports and more than 50 key inland river ports across the country. Through thesystematic integration of port and shipping resources and the construction of multimodal transport modecorridors, an e?cient and hierarchical integrated logistics service system is built.In terms of strategic layout, we rely on the three horizontal transportation corridors formed by the YangtzeRiver golden waterway, Pearl River shipping trunk line and coastal routes, superimposed with north-southvertical sea lanes, to build a “three horizontal and one vertical” shipping backbone with strategic depthcharacteristics. Through the coordinated development of port clusters, coordinated trunk and branchroutes and seamless intermodal transport, e?orts are being made to promote the construction of a modernshipping and logistics corridor to achieve the deep integration of the river basin economic belt as wellas the coastal economic circle. In response to our customers' core demand for logistics quality, we focuson building a boutique express network connecting major coastal hubs. Providing customized maritimesolutions with timeliness and reliability through high density liner service, priority berth protection andintelligent operation management.

As at the end of the reporting period, Zhonggu Logistics operates 49 vessels withapproximately 2.47 million deadweight tons and an annual container volume ofapproximately 11.29 million TEU.

Foreign trade routes

Actively responding to the national strategic approach of “take the domestic cycle as the mainstay and letthe domestic and international cycles promote each other ”, with the existing advantages in domestic tradenetwork, Zhonggu Logistics focuses on the development pattern of double circulation and continues todeepen and expand the nearshore business. During the reporting period, Zhonggu Logistics leased some ofour vessels through the time charter model, with business scope covering 5 overseas countries and 12 ports athome and abroad, successfully connecting domestic and foreign trade transportation industry chain, furtherconsolidating the advantageous position of Zhonggu Logistics in the ?eld of foreign trade.

New model of internal and external double circulation

Zhonggu Logistics Route

?Comparing with the original CCA mode offoreign trade barges, the WGO (water gate) modehas lower costs and higher e?ciency, freeingcustomers from the constraints of CCA, reducingthe overall e?ciency and cost, providingcustomers with diverse choices, and formingthe core competitiveness of Zhonggu Logistics'foreign trade routes.

Building Core Advantages andSincere Service First

?Through end-to-end operational synergyand dedicated one-on-one client guidance,we streamline processes to save time, reducecomplexities, and enhance peace of mind,elevating the overall customer experience tounprecedented levels.

Establishing a Seamless Service Systemwith Comprehensive Assurance

?Mobilizing domestic trade barge resources,integrating and optimizing the barge routeallocation between Wuzhou and Nansha,forming a win-win situation in terms of e?ciencyand bene?ts, and creating high-quality foreigntrade services.

Leveraging Platform Resourcesfor Synergistic Development

?Breaking out of the geographical limitationsof Nansha Port, integrating domestic trade port,container, and barge resources, combiningdomestic trade experience, extending andexpanding the reach of foreign trade, buildingexcellent reputation and credibility for Zhonggubrand.

Establishing an Excellent Brandand Striving for Perfection

The SouthChina SeaIslands

Deeply Exploring Customer ValueDeeply Exploring Customer Value

Always adhering to the core philosophy of "customer ?rst,quality ?rst", Zhonggu Logistics continuously optimizesthe packing management system to provide customerswith an outstanding and stable experience in shippingservices.

Quality Assurance

Container Management Governance Structure

We have established a four-levelmanagement structure from headquartersto various functional departments. Withineach department, we actively pursue ?atmanagement and are committed to reducingthe negative impact of redundant humanresource structure on business promotione?ciency.

Road Safety Assurance

Safe and stable navigation conditions are the foundation of Zhonggu Logistics' development. During thereporting period, we established two management structures for navigation safety, which are applicable topersonnel related to the Company's safety management system (SMS) management organization (hereafterreferred to as "onshore employees") and all crew members of each vessel.Our subsidiary Yingkai Shipping has formulated an e?cient structure directly managed by the general managerfor onshore employees. The general manager oversees ?ve deputy general managers, who are respectivelyin charge of the Ship Management Department responsible for the speci?c operations of the vessels, theTechnical Support Department responsible for cutting-edge technological innovation, the ProcurementDepartment responsible for the purchase of fuels and other materials, and the Safety Supervision Departmentresponsible for overseeing and managing safety operations. In addition, the Crew Department responsible formanaging ship members and related matters is directly managed by the general manager. All departmentsperform their respective duties, strictly implement daily management based on theCompany OnshoreEmployee Responsibilities to ensure optimal management.

Container Management System

We have established a sound container management system to implement qualitymanagement from both container management system and routing management, toensure safe and e?cient freight transport links.

Adhering to the core philosophy of "Customer satisfaction is our pursuit," Zhonggu Logistics continuouslyenhances the customer service standards. We constantly optimize our customer service, proactively addresscustomer needs, and are committed to comprehensively improving customer management and enhancing theoverall customer experience.

On the basis of ensuring route safety, Zhonggu Logistics continues to boost ship operation capabilities andprovide customers with e?cient and stable shipping services.

Customer Management

Optimizing Customer Service

Headquarter

Dispatch Team, Repair Team, Tracking Team,

Leasing and Manufacturing Team

AreaPort

?We conduct a full life cycleanalysis of customer service,analyze the scenarios involved inthe transportation process, sortthem out and establish a containermanagement system, by applyingthe digital platform, we create afull-process management functionfrom ordering, tracking, inquiry,modi?cation, settlement, etc.,and further improve the customerexperience.

Container System Management

?In order to enhance transportatione?ciency, we continously improveroute management, upgradingcustomer service quality while savingoperating costs, achieving a well-balanced sustainable developmentframework. In terms of routeconstruction, we manage and modifyconventional routes in a regularmanner. Regarding transit corridordevelopment, we strategicallyoptimize vessel allocation andcargo routing patterns with de?nedobjectives: accelerating time-critical transshipment e?ciency,balancing import-export cargo ?ows,and maximizing route pro?tabilityindices.

Route Management

For all crew members on board, we have established a responsibility framework with the ship's captain as theultimate responsible person. In ourCompany Crew Responsibilities, we have strictly de?ned the speci?c dutiesand navigation rules for all crew members, requiring carrying out navigation work in strict accordance with theregulations and rules, implement a full responsibility system, and jointly maintain the safety and navigationorder of the ship.During the reporting period, Zhonggu Logistics conducted a total of 25,728 hours of quality and safety-relatedtraining, covering all company employees.

General ManagerCrew DepartmentAll Ships

Vice General ManagersShip Management

Department

Technical Support

Department

ProcurementDepartment

Safety Supervision

Department

Responsibility framework for Yingkai Shipping Onshore Employees

Deeply Exploring Customer ValueDeeply Exploring Customer Value

Measures to Enhance Ship Operating Capacity

Under the premise of ensuring navigation safety, we have adopted a series of measures to continuouslyoptimize the operating capacity of our ships. These initiatives mainly revolve around two dimensions,including the upgrade and optimization of the ship's own operating conditions, as well as the cultivationand enhancement of crew members' operational awareness and sense of responsibility.

Ship Speed-up Retro?t

Ship Monitoring and Satellite Navigation System

Crew Excellence Recognition Program

The maximum rotational speed of Zhonggu Logistics' City Series vessels has been maintained at113rpm during long-term operation, operating under the optimal performance of main engines. Duringthe reporting period, to enhance the operational e?ciency of the vessels, the competent technicaldepartment conducted detailed testing and analysis of the main engines' thermodynamic parameters,including key indicators such as rotational speed, power, explosion pressure, and fuel consumption.On the premise of ensuring safety, the technical personnel decided to adjust the operating parametersof the main engines. Based on the test results and actual operational requirements, the maximumoperating rotational speed of the main engines was increased to 116rpm. To ensure the safe operationof the main engines, the technical personnel carefully inspected the explosion pressure according tothe load conditions, ensuring operating below the safety limit of 145bar. We also made reasonableadjustments to the maximum fuel limit of the main engines, controlling it within 48% of the throttlescale to avoid engine overload and fuel wastage, thereby signi?cantly improving the operationale?ciency of the main engines on the City Series vessels.During the reporting period, we upgraded the equipment on ?ve vessels, namely Zhonggu Nanjing,Zhonggu Chongqing, Zhonggu Wuhan, Zhonggu Nanchang, and Zhonggu Chengdu. A series of satellitecommunication devices were updated for each vessel, providing strong support for their operation oninternational trade routes. During operation, all vessels’ equipment functioned normally and wasrecorded, e?ectively enhancing the navigation safety and communication capabilities of the vessels.Meanwhile, as one of our important measures to promote safe navigation and digitalized/intelligentmaritime operations, the installation of CCTV monitoring systems continued progress. As of the end ofthe reporting period, all our vessels have been equipped with CCTV monitoring systems, enabling real-time monitoring of various areas on the vessels. This has further strengthened the safety managementlevel and emergency response capabilities of the vessels. Through equipment upgrades and theinstallation of CCTV monitoring systems, the navigation safety and digitalized/intelligent managementlevel of our vessels have been signi?cantly improved.To recognize ships and crew members who have excelled in their operations, we have establisheda recognition program for outstanding ships and crew members. The evaluation process strictlyfollows the guidelines outlined in the evaluation notice issued by the Safety Supervision Department,ensuring fairness, impartiality, transparency, and objectivity. We select "Excellent Ships" basedon their outstanding performance in all aspects, including safety, e?ciency, and environmentalprotection. "Excellent Crew Members" must demonstrate a strong work ethic, a proactive attitude,and an innovative spirit. They should be able to solve technical problems on board, serve as rolemodels within the team, and achieve excellent results in peer evaluations. We present gifts ranging

in value from 800 to 5,000 RMB to the awarded crew members, along with medals, certi?cates, and

other honorary proofs, to acknowledge their outstanding contributions to the Company. We believethe program will further motivate all crew members to continue pursuing excellence and drive thebusiness to next level.

We actively improve our customer satisfaction survey mechanism and invite customers to participate in satisfactionsurveys through diverse channels such as the Zhonggu e-commerce platform, WeChat O?cial Account, and WeChatMoments.We continuously strive to increase the coverage of our customer satisfaction surveys, encouraging customers toshare their genuine experiences with Zhonggu Logistics services by o?ering incentives such as coupons. It helps usidentify areas waited for improvement and optimize our service levels. During the survey process, we attach greatimportance to customer privacy and ensure that all questionnaires do not involve personal customer information.We conduct follow-up interviews with customers who express lower satisfaction levels, documenting the reasons indetail, promptly reviewing and continuously tracking the issues.During the reporting period, Zhonggu Logistics distributed satisfaction surveys to a total of 1,749 active bookingcustomers, with 986 responses received, representing a response rate of 56.4%. In 2024, the overall customersatisfaction rate for the Company was 93.2%. We conducted a summary analysis of each customer feedback andformulated follow-up recti?cation measures, clarifying the responsible departments and recti?cation deadlines. Forreasonable suggestions and demands raised by customers, we actively adopted them and developed correspondingimprovement measures to ensure e?ective problem resolution. We also strengthened communication andexchange with customers, promptly providing feedback on progress, and won the understanding and support of ourcustomers.

We have established an open and transparent complaint reporting mechanism to enhance our response capabilityto customer complaints. We continue to implement theOperation Manual for Customer Complaint HandlingProcedures and Management Measures,assisting customers in e?ciently resolving issues based on standardizedcomplaint handling processes.

During the reporting period, the Company received a total of 65 complaintsabout products and services, a year-on-year decrease of 62%, and the complainthandling rate was 100%.

Satisfying Customers Demands

Customer Complaint Management

Complaint Resolution Process

ReceiveComplaint

RecordComplaint

PreliminaryInvestigation

DetermineResponsibility

DetailedInvestigation

Rectifythe Issue

CustomerFeedback

Recordand Analyze

4647

Deeply Exploring Customer ValueDeeply Exploring Customer Value

Digitalization is a new engine for the shipping industry to move towards high-quality development and is the keyto enhance the e?ciency of resource allocation, grasp the pulse of the times, and seize the strategic opportunitiesin the unprecedented changes of the century, as well as one of the vital means to promote the innovation anddevelopment of the shipping business and stimulate the new kinetic energy. Zhonggu Logistics adheres to thecorporate goal of “?rst-class enterprise, ?rst-class talents, ?rst-class performance and ?rst-class return”, andis committed to promoting the digital transformation of the shipping industry, serving the national strategy of astrong maritime nation and promoting the development of the Maritime Silk Road.

Digital ShippingTransformation

Internet Shipping

Digitalization

Platformization

Mobilization

Three-dimensionalization

Digital Strategic GoalsTo further improve the resource allocatione?ciency of the Company and achieve thegoals of transparency, e?ciency, green andsafety of business operations, the Companyhas clearly put forward the developmentstrategy of the logistics system:

digitalization, three-dimensionalization,Platformization and mobilization. We are?rmly orientated towards scienti?c andtechnological innovation, continuouslyincreasing R&D investment andaccelerating the transformation andapplication of achievements. Adhering tothe goal, we optimize the digital platformmanagement system, actively promotethe practice of technological innovation,and provide customers with a solid andreliable guarantee with excellent safetymanagement capabilities.

Zhonggu Logistics aims to enhance businesscollaboration and service capabilities byoperating its business in a digital environment,driving its own digital transformation e?ortsbased on actual demands, and committing tobuilding a smart and e?cient digital shippingsystem. We have established a digital platformmanagement system and developed anddeployed six core systems: the ZhongguE-commerce Platform, Bill Switching System,Tugging System, Ship Operation System, CargoTracking System for Domestic Trade, CargoTracking System for Foreign Trade, providingcustomers with comprehensive informationservices throughout the logistics process.

Zhonggu Logistics has fully integrated the group business and ?nancial data ?ows, establishing a uni?ed perspectiveon ?nancial management that provides solid data support for decision-making analysis, forming e?ectivemanagement control measures. We focused on deepening the application of big data, enhancing our data outputand service capabilities for other business segments through the implementation of multiple data applicationscenarios. In terms of business system construction, we have emphasized improving the scalability and ?exibilityof the systems, successfully building a comprehensive order processing center that integrates sea freight, roadtransport, rail transport, and barge transport. In addition, we deeply analyzed customer needs and achieveddeep integration with customer systems, enabling direct data exchange and signi?cantly enhancing the customerexperience. At the same time, we attach great importance to data collection and governance, integrating dataresources from various systems and modeling data based on business scenarios to provide comprehensive andaccurate data service support for business development.

Digital Platform Management

E-commerce

PlatformCargoTrackingSystem forForeign Trade

Bill Switching

SystemDigital

PlatformCargoTrackingSystem for

Domestic

Trade

TuggingSystemShipOperation

System

As one of the ?rst Chinese enterprises that have introduced the Internet into shipping, Zhonggu Logistics insists onthe research, development and application of technology while making full use of technological advantages. Relyingon existing technologies, we have enhanced research and development of electronic data software, RPA technology,AI and other intelligent innovation technologies to enhance our business management capability.

Digital Technology Innovation

?We have achieved electronic data interchange (EDI)integration through the EDI software for the ports and yards.?The Company has comprehensively realized e-commercebooking without written authorization. The electronic bookingrate reaches up to 100%.Electronic data

software

?The B2B automatic data docking empowers theproduction of enterprises greatly.?Through faster and more accurate processing ofcustomers'business documents, we provide customers withmore e?cient and reliable services.Robotic processautomation (RPA)

?AI photo recognition technology is used to realize thefast approval of container repair quotation, repair review,automatic account reconciliation, etc., which ensures dataaccuracy while improving e?ciency.AI approves therepair requiries

Deeply Exploring Customer ValueDeeply Exploring Customer Value

Zhonggu Logistics strictly complying with the relevant laws and regulations of business locations and establishedthe Information Security Management System of Shanghai Zhonggu Logistics Co., Ltd.to ensure data security. Weensured data security through security information disclosure and deepened cooperation with third-party serviceproviders, through regular case analysis, business asset sorting and vulnerability scanning, ensuring the securityand controllability of online external services.

Data Security Management

Website and application security assessment

?Leverage the application development lifecycle, comprehensively identify cybersecurity issuesto ensure software security at all times.

Website and application security reinforcement

?Improve the rationality of application code deployment to continuously enhance security.

Filtering of external threats

?Deploy web ?rewalls, IPS, and other devices to monitor, ?lter, and log malicious external access

attempts.

Status monitoring

?Implement monitoring of the status of protected application pages and synchronously monitorwebsite access log directories to determine if any attacks have occurred.

Emergency response

?For security incidents with a higher likelihood of occurring, promptly prepare contingency plansand conduct drills, striving to report, handle, and summarize the incidents in the most e?cientand reasonable manner possible after they occur.

Data security management?Strictly enforce backup mechanisms for applications, databases, and documents, and ensure

that backup data is stored independently of production and o?ce environments.

Data Security Management Measures

Digital Twin System for Qinzhou Yard

COFCO Sugar Integrated System

Zhonggu Logistics has successfully applied a digital twin system at Qinzhou Multimodal Container LogisticsBase, marking a deep integration of information technology and logistics management. Our digital twin systemutilizes high-?delity virtual modeling technology to accurately replicate the physical environment of thelogistics base, including but not limited to the physical layout, architectural structures, and equipment status,while continuously collecting and updating real-time data to ensure consistency between the virtual model andthe actual base. Furthermore, the system deeply integrates actual production data from the base, such as yardcargo throughput, transportation times, and equipment utilization rates. Through information collaborationmeans, it achieves information connectivity between the terminal and the yard, ensuring that the entry and exitof containers are traceable and that container pickups as well asreturns are well-documented. These initiatives and the data theygenerate not only drive real-time changes in the virtual model butalso powerfully support in-depth analysis and decision-makingoptimization for base operations. Enabling real-time monitoringof the actual operational situation of the base through the system,providing a comprehensive view of production activities andsigni?cantly enhancing the intelligence level and operationale?ciency of the base.

During the reporting period, Zhonggu Logistics conducted in-depth system integration with COFCO Sugar.Through automatic interface retrieval of consignment information, we ensured the accuracy and timelinessof the information while synchronizing logistics transportation dynamics, enhancing the transparency ande?ciency of logistics management. We focused on increasing the automation of key business process nodes,simplifying data entry and processing, and reducing the risk of human error. One employee can now completethe workload previously handled by three, freeing up productivity and providing a smooth and e?cientbusiness experience. This project signi?cantly improved Zhonggu Logistics' capability and competitiveness. Asthe ?rst service provider to interface with COFCO Sugar, this system facilitated in-depth business cooperationbetween the two parties. As of the end of the reporting period, the system is widely used to serve COFCO Sugarin the Northeast, Southeast, North China, and other regions, enhancing operational e?ciency and customersatisfaction.

We actively share outstanding digital experiences within the industry and meet the digital needs of our clients andthird-party enterprises. During the reporting period, we assisted COFCO Sugar in establishing a comprehensiveinformation management system, achieving system integration, and facilitating collaborative business development.

Personalized System Development

Upgrade and Optimization of the Security Management System

Against the backdrop of accelerating digital transformation, Zhonggu Logistics has implemented a series ofsystematic optimization projects to break through operational e?ciency bottlenecks. To address e?ciencyissues caused by cumbersome operations in the business system, we have reconstructed the quick menufunction based on user behavior data analysis, utilizing intelligent algorithms to prioritize the display offrequently used modules. In addition, we have synchronously upgraded the asset management system,leveraging the function of automatically collecting device information upon terminal login to transform thetraditional manual computer inventory model into real-time digital management, thereby steadily improvingthe accuracy of asset inventory.

Deeply Exploring Customer ValueDeeply Exploring Customer Value

A stable and high-quality partnership is a crucial guarantee for the sustained development of Zhonggu Logistics. Weadhere to relevant laws and regulations, establish an internal supplier management system, and rigorously conductsupply chain management work, integrating compliance and sustainability requirements into the entire process oftender initiation, supplier onboarding cooperation, and evaluation.

Strengthening SupplyChain Management

Supplier Onboarding

Supplier Evaluation

Green Fleet

Annual Supplier Evaluation

During the reporting period, we introduced a "pre-approval principle" for newly onboarded suppliers in oursupplier introduction process. Pre-approved suppliers are required to ?ll out theNew Supplier Approval Formfor the Procurement Department,covering dimensions such as supplier price advantages, product technicalparameters, and supply capabilities. Only after passing the approval process can they become suppliers ofZhonggu Logistics. When new suppliers have been cooperating for a full year and achieves a 3A or above ratingin the Company's internal supplier evaluation, they can apply to join theQuali?ed Supplier List. Based on thisprocess, we onboarded one new spare parts supplier during the reporting period.Furthermore, during the reporting period, we introduced a trailer supplier system in the bidding process forour nationwide ?eet of suppliers, digitizing the bidding process and integrating integrity agreements and safetyoperation standard documents. All participating ?eet suppliers in the bidding process are required to study andcomply with these documents, and we conduct promotional training for bidding ?eet suppliers during the bidnegotiation phase.During the reporting period, we further improved the marine material procurement management system- the supplier evaluation system, detailing the standards and scoring rules for annual supplier evaluations,e?ectively guiding the annual supplier rating. Based on the speci?c needs of business activities, we adjustedthe weightings of price, service terms, and other dimensions in the supplier service evaluation, emphasizingthe assessment of supplier technical service support feedback e?ciency. This further meets the speci?cneeds of various business lines for suppliers and evaluates suppliers through a combination of qualitative andquantitative methods.

During the critical period of the shipping industry's transition towards green and low-carbon operations,Zhonggu Logistics has actively responded to the national “dual carbon” goals by vigorously promotingthe construction and application of a new energy ?eet. During the reporting period, through the Company'sintroduction of new ?eets and guidance and promotion among existing ?eets, a total of 88 new energy vehiclesfrom 14 ?eets were put into operation, transporting 3,592 TEUs (twenty-foot equivalent units). This achievementnot only re?ects the Company's active exploration in the ?eld of new energy but also demonstrates its ?rmdetermination to promote sustainable development within the industry. Based on the strong start in 2024 andactual operational experience, the Company plans to further expand new energy vehicle transportation in 2025to achieve broader environmental and economic bene?ts.

To enhance the Company's supply chain management level, recognize outstanding suppliers and serviceproviders, and motivate suppliers to continuously improve servicequality, we organized an annual supplier evaluation duringthe reporting period. The evaluation covered four categories:

spare parts, materials, lubricants, and fuel, encompassing overa hundred suppliers. The evaluation criteria included productquality, supply capability, price reasonability, after-sales service,and other dimensions. Through a rigorous evaluation process, weultimately selected the top ten gold medal suppliers. We held anaward ceremony for these ten suppliers to recognize their servicequality and outstanding contributions to ensuring the safe andgreen operation of our ships.

Zhonggu Logistics strictly adheres to relevant laws and regulations on privacy protection and has establishedinformation security management and customer privacy management systems. We follow the principle of collectingthe minimum amount of information necessary and are committed to implementing full-process management ofcustomer privacy protection starting from the source of information. We regularly conduct information security drillsand strictly carry out measures such as screening for weak passwords in the system and inspecting informationstorage environments. We are dedicated to improving the privacy information management system and enhancingthe ability of our employees to protect all types of information. During the reporting period, we conducted a phishingemail information security protection drill for 296 employees, during which 6 employees submitted personalinformation. After the drill, we issued a summary report on the drill situation and provided relevant safety trainingand educational resources, aiming to enhance employees' safety awareness and response capabilities, ensuring thatthe Company can respond quickly and e?ectively to cybersecurity challenges.

Zhonggu Logistics actively engages in two-way communication with its suppliers, committed to providing timelyindustry information and policy dissemination, and continuously conducting regular review plans to assesssuppliers' operational performance during the period. We closely monitor the dynamic release of governmentinformation and promptly synchronize content related to our ?eet supplier business with relevant suppliers. Wealso organize necessary promotion and training meetings to facilitate essential communication and exchanges withthe responsible personnel, scheduling managers, and drivers of our ?eet suppliers. We continuously improve thee?ciency of bilateral communication, actively listen to suppliers' opinions, understand their di?culties, and providetargeted training, striving to create an e?cient supplier communication system.During the reporting period, we conducted a total of 12 supplier training sessions, with a total training duration of 24hours, covering nearly 1,200 suppliers of Zhonggu Logistics.

Privacy Protection Measures

Supplier Communication

We prioritize cooperation with suppliers that have obtained system certi?cations. During the reporting period,several of our suppliers have obtained system certi?cations including ISO 14001, ISO 45001, and ISO 9001.For suppliers lagging in the evaluation, we have further clari?ed speci?c supplier exit rules. All suppliersshould prepare for subsequent work in accordance with the handling opinions issued after discussion bythe evaluation committee. For suppliers with an annual evaluation score below 60 points, the evaluationcommittee could terminate their cooperation if they fail to make su?cient improvements within a ?xed period.

Creating a Harmonious CommunityCreating a Harmonious Community

Zhonggu Logistics strictly adheres to employment-related legal regulations in all operational jurisdictions,including theLabor Law of the People's Republic of China, the Labor Contract Law of the People's Republicof China, theLaw of the People's Republic of China on Protection of Minors, the Company upholds fair,equitable, and non-discriminatory employment practices, maintaining strict compliance with legalrequirements. We expressly prohibit child labor and forced labor in all operations. During the reportingperiod, no incidents of non-compliance with child labor or forced labor regulations were recorded.To enhance the scienti?c precision and operational e?ectiveness of our recruitment processes whilestandardizing employee conduct, we comprehensively revised theRecruitment Policy and the EmployeeHandbookduring the reporting period. These updates aim to cultivate a positive, collaborative workenvironment and reinforce the Company's reputable corporate image.To attract and select outstanding talents, Zhonggu Logistics has established a diversi?ed recruitmentchannel, covering on-site submission, online application portal, email submission, and application viaWeChat o?cial account. Meanwhile, we adhere to the principles of diversity and fairness in recruitment,continuously innovate recruitment strategies, and enhance the professionalism and e?ectiveness of ourrecruitment e?orts through a variety of initiatives, including o?-campus experimental teaching bases,campus job fairs, and industry-university cooperation.

Diversity and Equity

Zhonggu Logistics has partnered with Guangxi University to jointly establish the“Guangxi University-Zhonggu Logistics Internship and Practice Base”

In 2024, to deepen the integration of industry,academia, and research, and to fully leveragethe strengths of both universities andenterprises in teaching, research, production,and talent resources, Zhonggu Logistics andGuangxi University formally signed a university-enterprise cooperation agreement to buildthe “Guangxi University-Zhonggu LogisticsInternship and Practice Base.” Movingforward, the two parties will engage in in-depth cooperation in multiple areas, includingtalent cultivation, teaching practice, and talentemployment. They aim to jointly promotethe coordinated development of educationand industry and deliver more outstandingprofessionals to the sector.

Creating aHarmoniousCommunityZhonggu Logistics continues to re?ne its talent acquisition and human capital managementframeworks, implementing strategic initiatives that systematically empower professionalgrowth through strengthened competency development programs, performance-drivenincentive structures, and streamlined career progression pathways. We are committed tofostering an equitable, respectful, and inclusive workplace culture that values diversity,while enabling continuous employee advancement through organization-wide trainingsystems and cross-functional collaboration mechanisms. These integrated approachesfacilitate synergistic alignment between organizational objectives and individual careeraspirations, ultimately achieving sustainable co-development and collective value creation.

Creating a Harmonious CommunityCreating a Harmonious Community

As of the end of the reportingperiod, Zhonggu Logisticshad a total workforce of 1,539employees, of whom 1,532 werefull-time employees. The speci?cstructure of our workforce is asfollows:

Zhonggu Logistics places high importance on the rights and bene?ts of its employees, and iscommitted to creating a high-quality working environment and development opportunities toe?ectively reduce employee turnover. During the reporting period, the overall employee turnover rateof the Company was 12%. We always respect the personal choices of our employees. For those whosubmit resignation applications, we will handle their resignation procedures in accordance with lawsand regulations, ensuring the entire process is fair and transparent.

Total number ofemployees byrank

Total number ofemployees byage

Top-level management

Mid-level management

50 and above

Total number ofemployees bygender

Female

1,183Male

Rank & ?le

1,357

30 andbelow

31-50

Indicator20242023ChangesTotal employee turnover rate12%16%-4%Employeeturnover rate bygender

Male11%14%-3%Female14%19%-5%Employeeturnover rate byage

30 and below18%17%1%31-505%13%-8%Above 5013%19%-6%

Zhonggu Logistics Partners with Shanghai Maritime University to Establish the

"Industry-Education Integration Graduate Joint Training Base"

In 2024, Zhonggu Logistics entered into a deepstrategic partnership with Shanghai MaritimeUniversity to jointly establish the "Industry-Education Integration Graduate Joint TrainingBase." Both parties will fully capitalize on theirrespective strengths in the industry and academic?elds, and engage in comprehensive university-enterprise collaboration through a variety ofcooperative models. This collaboration is aimed atachieving resource sharing and complementary advantages, promoting mutual development, andstriving for a "win-win situation in industry and academia." Ultimately, the goal is to cultivate morehigh-quality professional talents for the industry.

Campus Recruitment FairsZhonggu Logistics places great emphasis on university-enterprise cooperation and activelycollaborates with multiple higher education institutions to continuously enhance theprofessionalism and e?ectiveness of its recruitment e?orts. During the reporting period, ZhongguLogistics organized several recruitment fairs and presentations, including the 2024 CampusRecruitment Fair at Chang'an University, the 2024 Campus Recruitment Presentation at ShaanxiUniversity of Science and Technology, the 2024 Campus Recruitment Fair at Xi'an Shiyou University,and the "Enterprises on Campus - Zhonggu Logistics Campus Recruitment Thematic Session"at Dalian Maritime University. These activities not only provided university graduates with theopportunity to gain an in-depth understanding of Zhonggu Logistics but also attracted a largenumber of outstanding talents to the Company.

2024 Campus Recruitment Fair at Chang'an

University

2024 Campus Recruitment Presentation atShaanxi University of Science and Technology

2024 Campus Recruitment Fair at Xi'an

Shiyou University

Campus Recruitment Thematic Session at

Dalian Maritime University

Creating a Harmonious CommunityCreating a Harmonious Community

Zhonggu Logistics has always adhered to the people-oriented philosophy, continuously optimizing theonboarding training system for new employees and thedevelopment training system for current employees. TheCompany places great emphasis on employee training anddevelopment, committed to fostering employee growthand laying a solid foundation of talent for the sustainabledevelopment of the enterprise.

Zhonggu Logistics has always placed employee capability development at a strategic level. By constructinga tiered and categorized training system, we systematically enhance employees’ professional competence,management skills, and team collaboration e?ciency, thereby injecting talent momentum into the Company'shigh-quality development. We design di?erentiated development paths for employees at di?erent levels andcreate a full-cycle development mechanism that covers all sta? members: New employees quickly integrateinto the corporate culture and business processes through immersive onboarding training, while currentemployees rely on progressive capability enhancement programs to achieve continuous growth. We have alsoinnovatively adopted a blended learning model that combines online and o?ine modes, allowing employeesto choose their learning paths according to their needs and signi?cantly improving the e?ectiveness oftraining.

TalentDevelopment

Establish the trainingevaluation mechanism

Optimize the new employeeinduction training system

Improve the Training

Management Measures

Talent Management and Cultivation System

To support the implementation of the Company's strategy and the development of a talent pipeline,we have built a strategy-oriented training system that focuses on converting training outcomes intoorganizational e?ciency. During the reporting period, we have e?ciently advanced and completed severalkey initiatives, including the tiered and categorized development plans, external training programs formanagers, executive elite seminars, the establishment of a standardized new employee training system,and the development of supporting teaching materials. This has enabled precise alignment betweentalent development and business growth.

?Organized various forms, types, andfrequent external training programs,including management iron army specialtraining and "Pro?t Center ? GrowthSystem" special training.

External Training Programs forLeaders

?Planned and organized the 2024new employee training for the Group,tracking the learning progress and workperformance of new employees throughoutthe process to ensure they quickly adapt tojob requirements and inject fresh vitality intothe Company's business development.

New Employee Training

?Conducted a series of 13 seniormanagement classroom training sessions,focusing on key areas such as strategicdecision-making, leadership enhancement,and innovative thinking cultivation, to createelite classrooms, help management personnelat all levels improve their management skills,consolidate team wisdom, and promote theimplementation of strategies.

Senior Management EliteClassroom Training

?Completed the compilation and printingof the Company's 2024 new employeetraining materials, standardizing thecontent and standards of training to ensurethe systematicness and coherence of newemployee learning.

Establishment of New EmployeeTraining Materials

“Pro?t Center ? Growth System” Special External Training

During the reporting period, approximately 30senior management representatives from theheadquarters and regional divisions participatedin a three-day "Pro?t Center ? Growth System"special external training in two separate groups.The core concept of this training was to optimizethe organizational structure and innovatebusiness models to transform the Company intoa platform where each department becomesan independent pro?t center. This approach aims to fully decentralize objectives, interests,responsibilities, and operations, thereby stimulating the operational vitality of the organization. Itencourages employees to deeply engage in business operations and take on pro?t responsibilities,promoting a culture where all sta? become business operators.

During the reporting period, Zhonggu Logistics revised and improved the Training Management Measures,further standardizing the training work for new employees during their probationary period across variousunits. By unifying management standards and optimizing the onboarding training system, the Company hasprovided more systematic and targeted training content for new graduates during their probationary period.This helps them quickly integrate into the Company’s culture, become familiar with their job responsibilities,and smoothly transition into their roles. Zhonggu Logistics has also established a comprehensive assessmentplan for training work, and assessments and comparisons are conducted based on this plan. The assessmentplan covers three core indicators: internal training within the Company, onboarding training, and externaltraining. Through a scienti?c and rational evaluation system, the Company encourages all units to place highimportance on employee training, thereby e?ectively improving the quality and e?ectiveness of training.

Creating a Harmonious CommunityCreating a Harmonious Community

IndicatorUnit20242023ChangesTotal training inputRMB10,0002952902%Total number of traineesPerson times234//Average number of hours of trainingperemployee

Hour51.1544.2815.51%Average traininghours completed peremployee by gender

MaleHour50.8544.50 14.28%FemaleHour52.1543.62 19.55%

Average traininghours completed peremployee by rank

Top-levelmanagement

Hour56.0948.00 16.86%Mid-levelmanagement

Hour49.0446.00 6.61%Rank & ?leHour51.1343.96 16.32%

Zhonggu Logistics has consistently placed employee care at the core of its corporate culture development,establishing a comprehensive employee care ecosystem that continuously strengthens organizational cohesion.Our commitment manifests through multiple dimensions: optimizing employee bene?ts and compensationsystems, developing transparent communication channels, enhancing occupational safety and securityframeworks, and organizing diverse cultural and sports initiatives. These concerted e?orts systematically nurtureemployees’ sense of belonging, workplace ful?llment, and overall satisfaction, ultimately cultivating a human-centric corporate environment that values warmth and professional excellence.

Caring for Employees

Senior Management Elite ClassroomTo systematically consolidate the managementwisdom and practical experience of the seniorexecutive team, Zhonggu Logistics has focusedon developing the “Elite Classroom”seriesof training programs this year. The aim is tobuild an internal knowledge-sharing platformand promote innovation and optimization of the internal trainingsystem. The program features senior managers from various centers andregions as lecturers, who conduct in-depth sharing sessions around coremanagement topics such as strategic decision-making and leadershipenhancement. During the reporting period, a total of 13 sessions wereheld, covering practical themes like “How to Improve Logical ThinkingSkills” and “Communication and Negotiation Techniques,” with over 4,000 participants in total.Through the continuous operation of the Elite Classroom, the Company has successfully achievedsystematic accumulation and inheritance of management experience, signi?cantly enhancing thestrategic thinking abilities, leadership levels, and innovative awareness of management personnel,thus injecting sustained momentum into organizational capability building.

New Employee Training MaterialsIn 2024, we successfully compiled a uni?ed training materialsuitable for all newly hired employees, systematically and modularlyorganizing the basic knowledge and processes for each positionwith the aim of standardizing training criteria. This set of materialsconsists of 7 volumes, covering the theoretical knowledge andoperational procedures for 6 major types of positions: routeoperations, ?nance and business, marketing, multimodal transportmode, route management, and container management. It alsoincludes content on organizational and cultural development, helping new employees quicklybecome familiar with their roles and improving the e?ciency of onboarding.

Zhonggu Logistics has thoroughly considered the growth patterns and development needs of its employees,and has designed an internal position hierarchy system and career development paths that align with theCompany's strategic development requirements. We actively advocate for employees to achieve verticalpromotion within their respective sequences and encourage horizontal mobility across sequences. Thisapproach broadens the career growth paths for employees and also lays a solid foundation of talent for theCompany's rapid expansion.

AssistantManager

DeputyManager

DepartmentManager

Center HeadSeniorSupervisorSupervisorGraduate

Regional Senior

ManagerFunctionalDepartment ManagerDeputyManagerSeniorSupervisorSupervisorGraduate

Regional SeniorManagerO?ce DirectorSenior SupervisorSupervisorGraduate

Headquarters Functional Management Sequence

Regional Functional Management Sequence

Regional Port Business Sequence

Information Technology Sequence

Junior IntermediateSenior

ArchitectSenior Developer

Product CategoryIT JuniorManagement

SeniorArchitectIT Director

Creating a Harmonious CommunityCreating a Harmonious Community

Zhonggu Logistics consistently places employee welfare at the core of its operations, continuously enhancingteam cohesion and employee happiness through a variety of cultural and sports activities, fostering a vibrantcorporate culture atmosphere.During the reporting period, Zhonggu Logistics carried out a diverse range of cultural and sports activitiescentered on employee care and team building, fully re?ecting the Company's emphasis on employee welfare.We organized activities such as the Hui-Hang hiking team building, a health weight loss competition, andbadminton matches, which not only strengthened team cohesion but also promoted a healthy lifestyle.Additionally, in conjunction with signi?cant holidays, the Company held events like the International Women'sDay recognition ceremony, Mid-Autumn Garden Party, and Thanksgiving themed activities. Through theexchange of ?owers, gifts, and service awards, the Company conveyed its care and recognition for its employees.Furthermore, activities such as a friendly basketball match with CICC Wealth further promoted communicationand cooperation among employees. These activities not only enriched employees' leisure lives but also createda positive corporate culture atmosphere, enhancing employees' sense of belonging and happiness.

Enriching Recreational and Sports Activities

Performance Assessment and Compensation Linkage?Zhonggu Logistics has established a linkage mechanism between performance assessment andcompensation incentives, deeply advancing the construction of a market-oriented compensationsystem. This fully stimulates employees' initiative and innovative potential, achieving mutualempowerment of individual value and organizational development.

Multidimensional Performance Assessment System?Zhonggu Logistics implements a multidimensional performance assessment system for employeesof di?erent categories and positions. The compensation level of employees not only re?ects thevalue of their positions but is also closely linked to the achievement of individual performance andbusiness objectives, ensuring the fairness and incentive nature of the compensation system.

Long-term Incentive Plan?The Zhonggu Shipping Group regularly provides feedback and rewards for employees'contributions through long-term incentive plans.

Zhonggu Logistics consistently regards the construction of a compensation system as a core component of itstalent strategy. By continuously optimizing the compensation and bene?ts system, we ensure that employeesreceive fair treatment that is competitive in the market. Based on industry benchmarking and market research,we have established a compensation incentive mechanism oriented towards capability and performancecontributions, e?ectively stimulating employee potential and innovative vitality. This has helped the organizationattract and retain a large number of outstanding talents. Speci?cally, we have taken the following systematicmeasures:

Zhonggu Logistics is always ready to help employeesto resolve their di?culties in production and life.Through the Zhonggu Care Fund, the Companyprovides comprehensive support for employees andtheir families, especially in times of emergencies andsigni?cant di?culties, o?ering timely assistance. Duringthe reporting period, the fund expended a total of 59,000RMB, bene?ting 56 employees. This included 32 instancesof wedding gifts, 20 instances of childbirth subsidies, 1instance of major illness assistance, and 3 instances ofcondolences for the passing of a family member. Thisinitiative not only re?ects the Company's deep care for itsemployees’ lives but also demonstrates the Company’ssense of social responsibility. By combining materialsupport with emotional comfort, we have e?ectivelyenhanced employees’ sense of belonging and cohesion,fostering a warm and harmonious corporate culture.

Improving Compensation MechanismMutual Assistance Between Employees

During the reporting period, Zhonggu Logistics established a two-way feedback mechanism to facilitate smoothcommunication channels for employees. The Company introduced a performance feedback system that clearlyde?nes work objectives and evaluation criteria. Employees can regularly engage in performance assessmentsand feedback with their immediate supervisors to understand their performance and receive guidance forimprovement. This enhances communication between management and sta?, and promotes work e?ciency andpersonal development.

Emphasize Communication with Employees

?Regularly conducts performanceassessments and feedback withthe direct manager

?Provides employeeswith work objectives andevaluation criteria

Employee

Direct Manager

Two-way Feedback Mechanism

In addition, ZhongguLogistics regularlyconducts employeesatisfaction surveys thatcover various dimensionssuch as compensation,performance, training,and career development.The survey results indicatethat the Company'smanagement levelcontinues to improve, andemployee happiness is onthe rise.

32 instances ofwedding gifts

20 instancesof childbirthsubsidies

1 instance ofmajor illnessassistance

3 instances ofcondolences

Donation Through the Zhonggu Care Fund in 2024

Hui-Hang Hiking Team Building ActivityDuring the reporting period, we organized andconducted a hiking team building activity on the Hui-Hang Ancient Path. The purpose of this event was toenhance team cohesion and the spirit of cooperationthrough outdoor hiking, while also allowingemployees to get close to nature and experience thecharm of outdoor sports. More than 150 employeesactively participated, and the activity achieved goodteam building results, providing employees with anunforgettable collective experience.

Creating a Harmonious CommunityCreating a Harmonious Community

Zhonggu Logistics consistently prioritizes the health andsafety of its employees, strictly adhering to national laws andregulations such as theSafety Production Law of the People'sRepublic of Chinaand theLaw of the People's Republicof China on the Prevention and Control of OccupationalDiseases. The Company ensures comprehensive protectionof employees' legal rights and interests. We have establisheda number of internal safety management systems, includingtheGeneral Principles, which clarify safety managementobjectives and provide detailed safety standards for theoperation of vessels, ensuring that all operational proceduresmeet the highest safety standards.We have established a comprehensive safety management system and regularly conduct safety trainingand emergency drills to ensure that employees work in a safe and healthy environment, thereby laying asolid foundation for the sustainable development of the Company. During the reporting period, we havecompleted the annual review and certi?cation of our occupational health management system.

Health andSafety

"Zhonggu Logistics Women of Distinction & March 8th Red Flag Bearers"

Recognition CeremonyOn the occasion of International Women's Day, tohonor the outstanding contributions made by femaleemployees in the Company's development, we held the"Zhonggu Logistics Women of Distinction & March 8thRed Flag Bearers" recognition ceremony on March 8thin the training room on the 18th ?oor. The Companyprepared ?owers for each female employee at theheadquarters to express our festive greetings andsincere respect.

Garden Party Themed Event

First Health Weight Loss Competition

Thanksgiving Themed Event

Zhonggu Logistics and CICC Wealth Joint

Basketball Friendship Match

Badminton Match

Zhonggu Book Club

Crew Joint DrillsDuring the reporting period, we carried out two planned ship-shore joint emergency drills asscheduled to enhance team coordination and emergency response capabilities. On May 31st, weconducted a drill for vessel loss of control and emergency towing operations to test ship-shorecoordination and towing procedures. On November 22nd, we held a drill for shore power failureand man-overboard scenarios to evaluate emergency responses in complex situations. Thesetwo drills reinforced emergency awareness, optimized processes, and laid the groundwork forhandling unexpected events, ensuring the safe and stable operation of our vessels.

Creating a Harmonious CommunityCreating a Harmonious Community

Zhonggu Logistics is not only concerned with the development of the surrounding communities but also takes it asits responsibility to give back to society. The Company actively engages in the national strategy of rural revitalizationand social welfare activities. Through various forms such as donations, public welfare activities, and consumptionassistance, the Company contributes to the all-around development of rural areas. At the same time, we encourageour employees to participate in community public welfare activities to jointly create a harmonious and beautifulsocial environment and convey positive energy.

Rural Revitalizationand Welfare

We are continuously improving the mechanisms of our occupational health and safety system. The followingtable presents the occupational health and safety performance during the reporting period:

IndictorUnit202420232022ChangesNumber of work-related deaths inthe past three years

Person000-Days of work lost due tooccupational injuries

Day147012Days of work lost due tooccupational injuries permillion RMB

Days/ million

RMB

0.013100.0008Work injury rate%0.1300.07Number of work-related injuriesPerson201Number of work-related accidentsNo.101Number of Safety DrillsNo.2,942///Total Hours of Health and SafetyTraining

Hours3,528///Coverage Rate of Health and SafetyTraining

%100///Amount Invested in Work InjuryInsurance

RMB228,716///Coverage Rate of Work InjuryInsurance Personnel

%100///Amount Invested in SafetyProduction Liability Insurance

RMB1,576,268///Coverage Rate of Safety ProductionLiability Insurance Personnel

%41///

Crew Training ProgramDuring the reporting period, Zhonggu Logistics o?ciallylaunched the ?rst phase of its onboard crew trainingprogram, and by December, ten successful sessions hadbeen conducted. The training content is comprehensiveand practical, covering basic knowledge and skillsrelated to ?re?ghting and life-saving operations on ships,key areas of current domestic and international shipinspections, as well as the latest international conventionsand regulations that have come into e?ect. In terms oftraining format, we have adopted ?exible and diversemethods, including on-site training organized during ship visits, remote video training during shipanchorages, and routine training organized by the captain onboard, ensuring the e?ciency andcontinuity of the training.

Zhonggu Logistics actively responds to the national rural revitalization strategy, integrating the consolidationand expansion of poverty alleviation achievements deeply into the Company's development strategy. Duringthe reporting period, we ful?lled our corporate social responsibility and promoted the sustainable developmentof the Company by actively participating in rural revitalization projects, achieving a complementary balancebetween social and commercial value. During the reporting period, our total expenditure on rural revitalizationamounted to 362,048 RMB.

Rural Revitalization

In the "Warming Hearts and Helping Villages" initiative organizedby the YuShu City Transportation Bureau, Huo Xiaojie fromthe Northeast Regional O?ce of Zhonggu Logistics activelyparticipated. Together with relevant departments, he went deepinto Zhonghou Village, Tuqiao Town, to deliver rice, ?our, oil,calendars, and other New Year's gifts to 12 households that hadrecently escaped poverty. This o?ce responded positively tothe local government's call, enthusiastically engaged in publicwelfare activities, and bridged the gap with the local community.Seizing this opportunity, they widely promoted the public welfarephilosophy of Zhonggu Logistics, e?ectively enhancing theCompany's social visibility.

"Warming Hearts and Helping Villages" Activity

Against the backdrop of the rural revitalization strategy,Zhonggu Logistics actively responds to national policiesby aiding rural economic development through theprocurement of agricultural products. In the winter of 2024,the Company purchased approximately 9,000 kilograms ofhigh-quality apples from Shandong and 1,200 servings ofGu Huai steamed buns. These products were not only usedto express care and gratitude to employees, customers, andpartners but also demonstrated the Company’s supportfor rural revitalization. By doing so, Zhonggu Logistics hasnot only enhanced its social image but also contributed tothe economic development of rural areas.

Zhonggu Logistics Purchases Agricultural Products to Support Rural Revitalization

Creating a Harmonious CommunityCreating a Harmonious Community

Zhonggu Logistics consistently upholds a passionate commitment to giving back to society and actively ful?lls itssocial responsibilities. The Company continues to increase its investment in community welfare and volunteerservices, working hand in hand with communities to build a better future, fully demonstrating the noblesentiment of enterprises in contributing to society and promoting the development of public welfare endeavors.During the reporting period, a total of 774 employees participated in social welfare activities, contributinga combined total of 3,797 volunteer service hours, with community investment and public welfare activityexpenditures amounting to 46,756 RMB.

Public Welfare

Volunteers from the Southeast Region of ZhongguLogistics joined hands with the Xin'gang Communityto actively participate in the "Clean Home" publicwelfare volunteer activity. On the afternoon of theevent, the volunteers, armed with trash bags andgrabbers, worked in groups to meticulously searchfor and thoroughly clean hidden areas of dirt, givingthe community a fresh new look.

Community "Clean Home" Public Welfare Volunteer Activity

Under the banner of "Zhonggu Public Welfare," weextended warmth to the children of the HuangdaoDistrict Special Education School, conveying societalcare through our actions and encouraging them to facelife with an optimistic and positive attitude, embracingthe beautiful world. At the same time, the Companyactively participated in the "Hand in Hand to Care forChildren with Disabilities, Heart to Heart to Protectthe Flowers of Our Motherland" initiative, focusing onspecial groups and contributing Zhonggu Logistics’strength to the social welfare cause.

"Visiting Qingdao West Coast Special Education Center" Public Welfare Activity

To promote the spirit of Lei Feng and leverage theexemplary and leading role of young party members,in order to better serve the elderly in the community,employees of Zhonggu Logistics will visit the nursinghome to carry out the “Learn from Lei Feng, MakeDumplings, Deliver Warmth” volunteer serviceactivity. Through practical actions, they will delivercare and a?ection to the elderly, conveying warmthand concern.

Nursing Home Public Welfare Activity

Headquarters Party Members' Book Charity

Auction

Public Welfare Book Charity Auction

"Sanitation Workers' Day" Public

Welfare Activity

"Protecting the Ocean, Together We Act"

Themed Party Day

Public Blood Donation

"Protecting the Beautiful Earth, Zhonggu

Logistics in Action" activity

Compliance in OperationCompliance in Operation

Zhonggu Logistics strictly adheres to the requirements of laws and regulations, including theCompany Law of thePeople's Republic of China, theCode of Corporate Governance of Listed Companies, theGuidelines for IntroducingIndependent Directors to the Board of Directors of Listed Companies, theRules for the Shareholders' Meetingsof Listed Companiesand theGuidelines for Articles of Association of Listed Companies, continuously improvingcorporate governance and enhancing the level of standardized operation.

Corporate Governance

Compliance inOperationZhonggu Logistics always pursuing “safe, e?cient and green” development, andhas established a governance structure with Zhonggu characteristics that aligns withthe features of the logistics industry, supports the Company's strategic development,and adapts to its production and operation. We conduct strict internal management inaccordance with laws, regulations, and listing requirements, continuously improve ourinternal control systems, and comprehensively build a risk management framework.We continuously enhance the standardization of our company's operations, e?ectivelyimprove our corporate governance capabilities, and achieve dual improvements inoperational quality and e?ciency.

Zhonggu Logistics attaches great importance to the diversity and professionalism of board members. the boardconsists of nine members, including three independent non-executive directors, accounting for 33% of the total,and the proportion of female directors, supervisors, and senior executives is 27%. The board has established fourspecialized committees: the Strategy Committee, the Compensation and Appraisal Committee, the NominationCommittee, and the Audit Committee. In light with the Company's actual operational situation, we integrate theCompany's actual operations, identify speci?c needs, emphasize maximizing the roles of the Board of Directorsand its committees, ensure the ful?llment of functions and responsibilities by shareholders' meetings, theBoard of Directors, the Board of Supervisors, and management, thereby safeguarding the shared interests ofshareholders and the Company.

Governance Structure

We have implemented multiple initiatives to strengthen internal governance. Aligned with strategic developmentneeds, the Company is systematically advancing governance e?ciency enhancement initiatives. We continuouslyre?ne the corporate governance structure by optimizing the setup of Board committees and decision-makingauthorization mechanisms, establishing a governance system with clear responsibilities and e?ective checks andbalances. Concurrently, we have instituted a compliance management negative list and embedded compliancereview processes. Furthermore, we have developed a three-tier risk control framework covering strategic,operational, and supervisory levels. Building upon this foundation, we designed cross-departmental jointdecision-making mechanisms to create a closed-loop management model, which has signi?cantly enhanced theresponsiveness to major decisions and the precision of resource allocation.

Shareholders'

Meeting

Board of Directors

Board ofSupervisors

StrategyCommittee

NominationCommittee

Audit CommitteeCompensationand AppraisalCommittee

Compliance in OperationCompliance in Operation

Zhonggu Logistics strictly adheres to national laws and regulations such asThe Company Law of the People'sRepublic of China, industry standards, and internal group policies. Through a compliant and e?cient internalgovernance framework, we support the Company's steady development. During the reporting period, we conducteddynamic monitoring and re?ned management of operational performance across key control metrics, including butnot limited to vessel load factor, port idle time, direct berthing rate, cost control, and asset management.Building on a robust compliance system, Zhonggu Logistics provides regular compliance training to key directors,supervisors, and senior management to ensure their understanding and adherence to relevant laws and policies.Additionally, when regulatory adjustments occur, the Company promptly organizes policy analysis and deliverstargeted noti?cations and training to a?ected departments, ensuring alignment with the latest legal requirements.During the reporting period, we actively arranged for directors, supervisors, and senior executives to participatein training sessions on independent director system reforms organized by the Listed Companies Association ofShanghai, aiming to elevate corporate governance standards. Our independent directors also attended specializedfollow-up training at the Shanghai Stock Exchange to deepen their understanding of responsibilities and enhanceexecution capabilities. Furthermore, we distributed detailed guidelines and precautions on compliant tradingof company shares to directors, supervisors, and senior executives via email, WeChat, and other channels. Thisproactive management strategy ensures all transactions comply with regulatory requirements, e?ectively mitigatingpotential violations.

We actively advance the development of a commercial ethics culture, implementing diverse initiatives to enhanceethical awareness across all employees. This commitment ensures the legitimacy and integrity of business practices,laying a solid ethical foundation for sustainable development. During the reporting period, the Company conducteda comprehensive review of employees and their relatives' holding positions in the Company or a?liated entitiesto identify and mitigate potential con?icts of interest. This initiative not only strengthened transparency but alsoprovided data-driven insights for re?ning stricter compliance policies.As the corporate governance structure continues to optimize and internal oversight systems mature, we rigorouslyenforce post-termination audit procedures for departing senior management. These audits include thorough reviewsof their economic responsibilities during their tenure, serving as a deterrent to current executives and minimizingrisks, thereby driving continuous improvement in management practices.In business audits, internal corruption remains a key focus area. We employ in-depth analysis of operationalwork?ows, meticulous veri?cation of ?nancial records, and employee interviews to identify potential risks and non-compliant activities, safeguarding the healthy development of operations and the security of corporate assets.

Based on the core values of "loyalty, sincerity, and practicality," Zhonggu Logistics actively reinforces the mechanismof "dare not corrupt, cannot corrupt, and do not want to corrupt,"ensuring the Company's operations are honest ande?cient. To strengthen the anti-corruption system, we have formulated and continuously implemented the "Anti-Corruption and Integrity Management Measures" and the"Accountability Management Measures for Dereliction ofDuty and Violations."We have established the Zhonggu Logistics Anti-Corruption and Integrity Construction Leading Group, with theCompany's chairman serving as the group leader, board members as deputy group leaders, and heads of variousdepartments, regions, as well as wholly owned subsidiaries as members. Besides, the Company has established aninternal and external reporting mechanism, encouraging both personnel to actively report issues, thereby promotingthe construction of a tighter and more e?cient anti-corruption system.

Compliance Operations

Management Measures

Business Ethics

During the reporting period, we launched a month-long Integrity Promotion Month campaign to deepen anti-corruption e?orts. Through educational programs and awareness initiatives, the campaign aimed to strengthenemployees' commitment to integrity and ensure compliance across operations. All employees signed a CompliancePledge to a?rm adherence to corporate policies and professional ethics. Additionally, new hires were required tosign aPosition-Speci?c Integrity Commitment as a solemn vow to uphold ethical standards in their roles.

To foster employees' awareness of integrity and self-discipline, we prioritize the development of an integritycorporate culture and have implemented practical and e?ective measures. The Company conducts specializedanti-corruption and integrity training for both new hires and mid-to-senior management, aiming to elevate ethicalawareness across all sta? and promote a culture of honesty and integrity. During training sessions, real-world casestudies are integrated to illustrate the severe consequences of corruption and the profound signi?cance of anti-corruption e?orts, helping employees recognize the critical importance of ethical conduct for both the Companyand themselves. Additionally, the Company has established a robust oversight system and incentive mechanismsto encourage voluntary adherence to integrity standards, collectively fostering a transparent and ethical workplaceenvironment. During the reporting period, the Company further solidi?ed employees' understanding of compliancethrough an anti-corruption and integrity knowledge assessment. the test covered topics such as business operations,internal controls, anti-corruption policies, and legal regulations. A total of 1,033 valid responses were collected, withan average score of 87.78 across the Company, demonstrating strong employee grasp of integrity-related knowledge.During the reporting period, our business ethics training covered all employees, including the management.Speci?cally, the total training hours for senior management, mid-level management, and frontline employeesreached 126 hours, 318 hours, and 2,733 hours, respectively.

Business Ethics Training

the Company invited a prosecutor from the Hongkou District People's Procuratorate inShanghai to conduct a training session titled "Combating and Preventing Corruptionin Private Enterprises" for the senior management team. The training explained in anaccessible manner the corruption risks faced by private enterprises and correspondinggovernance strategies, signi?cantly enhancing the leadership's awareness of integrity andrisk prevention capabilities. Following the training, the Company organized all employeesto study the content and produced an integrity-themed documentary. Through real-worldcase studies and in-depth analysis, the documentary conveyed the critical importance ofethical conduct, ensuring that integrity principles resonate deeply across the organization.

Specialized Business Ethics Training for Senior Management

To further strengthen employees' commitment to integrity, Zhonggu Logistics producedan integrity awareness documentary. The ?lm vividly showcased real cases and providedthorough analysis, clearly communicating the profound signi?cance of ethical practices toall employees and embedding integrity into the corporate culture. The screening initiativenotably elevated employees' ethical awareness and reinforced the Company's complianceculture, fostering a transparent and upright workplace environment. Moving forward,the Company will continue to prioritize integrity-building e?orts by diversifying ethicaleducation programs and re?ning relevant systems. This will solidify the foundation forsustainable development, ensuring steady and long-term growth on a path of complianceand integrity.

Public Screening of Integrity Awareness Documentary

Compliance in OperationCompliance in Operation

Zhonggu Logistics actively optimizes risk assessment and early warning mechanisms, strictly enforcesrisk control procedures, and advances the integration of risk governance systems across all operationalprocesses. As of the end of the reporting period, the Company maintained 103 internal control policies,with 29 revised or enhanced in 2024.

Risk Management

The Company established a Risk Prevention and Control Task Force, led by the General Manager andcomposed of heads from the Risk Control Center and other departments, to institutionalize and systematizeinternal control operations. Regular internal control evaluations are conducted to inspect compliance acrossdepartments. During the reporting period, the Risk Control Center established an Internal Control Department,which operates with high independence to objectively and rigorously ful?ll its duties, re?ecting the Company'scommitment to strengthening its internal control framework. The department's responsibilities extendbeyond designing and re?ning control systems to overseeing and reviewing policy implementation, ensuringoperational compliance and e?ective risk mitigation.

Management Structure

Risk Control Management Structure

Risk Control

Center

Legal Department

Internal Control

DepartmentFinancial Center

General ManagerSafety Center

Administration

Center

Marketing Center

The Internal Control Department has proactively implemented initiatives to elevate organization-wideawareness and execution capabilities, driving deeper integration of internal controls and safeguarding theCompany's stable development.During the reporting period, the Company systematically advanced the construction of an internal controldefect remediation mechanism, creating a full-cycle management loop of "plan review – process supervision– outcome evaluation." A tiered supervision framework was implemented, requiring responsible units todevelop targeted recti?cation plans for expert review, alongside digital progress tracking and regular reporting.The Internal Control Department dynamically consolidated remediation progress developed cross-levelvisual dashboards and conducted root-cause analyses for delayed tasks. By strengthening process oversightand outcome integration, the Company promoted systematic re?nement of business work?ows, optimizedpolicy design and execution standards, and achieved deeper alignment between management systems andoperational practices, continuously enhancing control e?cacy and organizational e?ciency.Zhonggu Logistics has established a robust compliance management system, including a department-speci?clegal and regulatory database to underpin compliant operations. Building on this foundation, the Companydeepened the enforcement of internal controls by integrating control evaluations into performance assessmentsystem. This approach heightened employee focus on compliance, embedding control requirements into dailyoperations and signi?cantly strengthening risk prevention capabilities.

Zhonggu Logistics treats risk awareness as a strategic pillar for sustainable growth, systematically building arisk management education system that spans all roles and operational cycles. Through tiered and categorizedtraining programs, a comprehensive competency framework has been developed: mandatory courses for newemployees reinforce professional ethics, targeted training for key positions strengthens integrity standards,and practical drills for business lines address industry-speci?c risks. Additionally, the Company collaborateswith judicial authorities to deliver customized legal education, establishing a knowledge-to-action conversionmechanism to continuously enhance risk identi?cation and compliance decision-making capabilities. Thesee?orts lay a talent foundation for building a modern, industry-leading risk control system in the shipping sector.

Management Measures

Risk Management Training

During the reporting period, the Company organized a training event titled "New EmployeeTraining - Fasten the First Button of Your Career, Practice Integrity and Self-Discipline"for our new hires in 2024. The training was organized by the Internal Audit Departmentand attended by nearly 100 new employees from the 2024 cohort. The training contentcovered four main aspects: the responsibilities and roles of the audit department, laws,regulations, and company policies, case studies, and reporting mechanisms. The objectiveof the training was to provide new employees with an in-depth understanding of theCompany's rules and regulations regarding integrity, to help them grasp the Company'sinstitutional requirements through the analysis of past cases, to clarify employee behaviornorms, and ultimately to cultivate a sense of integrity and self-discipline among newemployees.

Integrity and Self-Discipline Training for New Employees

AppendixAppendix

Instructions for use

From January 1 to December 31, 2024, Shanghai Zhonggu Logistics Co., Ltd. reportedthe information cited in this GRI index with reference to the GRI standard.

GRI 1 GRI 1: Basic 2021Disclosureissue/item

Title of disclosureChapterGRI 1: Basics 2021GRI 2: General Disclosures 2021Organization and Reporting Practices2-1Organization detailsZhonggu Logistics at a Glance2-2Entities included in the organization's sustainability reportingAbout the Report2-3Reporting period, frequency, and contact pointAbout the Report2-5External guaranteeAbout the ReportEmployees and Activities2-6Activities, value chains and other business relationshipsDouble Materiality Assessment2-7Employees

Diversity and Equity, TalentDevelopment, Caring for EmployeesGovernance2-9Governance structure and compositionCorporate Governance2-12Supervisory role of the supreme governing body in management impactESG Governance System2-13Delegation of responsibility for managing impactsESG Governance System2-14Role of the highest governance body in sustainability reportingESG Governance System2-15Con?icts of interestDouble Materiality Assessment2-16Communication of critical concernsDouble Materiality Assessment2-17Collective knowledge of the highest governing bodyESG Governance SystemStrategies, Policies and Practices2-22Statement on sustainable development strategyMessage from the ChairmanStakeholder Engagement2-29Stakeholder engagement approachStakeholder communication

GRI 3：General Disclosure 2021

3-1Process for identifying substantive issuesDouble Materiality Assessment3-2List of substantive issuesDouble Materiality Assessment3-3Management of substantive issuesDouble Materiality AssessmentGRI 201: Economic Performance 2016

201-1Direct economic value generated and distributedKey performance

GRI 205: Anti-corruption 2016

205-1Operations assessed for risks related to corruptionBusiness ethics205-2Communication and training about anti-corruption policies and proceduresBusiness ethics205-3Con?rmed incidents of corruption and actions takenBusiness ethics

GRI Index

Index

Index to the Guidelines No. 14 of Shanghai StockExchange for Self-Regulation of Listed Companies—Sustainability Report (Trial)DimensionNumberTopicArticleChapter

Environment

1Addressing Climate ChangeArticles 21 to 28Tackling Climate Change2Pollutant EmissionsArticles 30Ecological Co-construction3Waste ManagementArticles 31Ecological Co-construction4Ecosystem and Biodiversity ConservationArticles 32Low-carbon Sailing5Environmental Compliance ManagementArticles 33Low-carbon Sailing, Ecological Co-construction6Energy UtilizationArticles 35Low-carbon Sailing7Water Resource UtilizationArticles 36Ecological Co-construction8Circular EconomyArticles 37Ecological Co-construction

Social

9Rural RevitalizationArticles 39Rural Revitalization10Social ContributionArticles 40Public Welfare11Innovation DriveArticles 42Digital Shipping Management12Science and Technology EthicsArticles 43Digital Shipping Management13Supply Chain SecurityArticles 45Strengthen Supply Chain Management

Equal Treatment of Small andMedium-sized Enterprises

Articles 46Strengthen Supply Chain Management15Product and Service Safety and QualityArticles 47Building Excellence Service

Data Security and Customer PrivacyProtection

Articles 48Building Excellence Service17EmployeesArticles 50Creating a Harmonious CommunityGovernancerelated tosustainabledevelopment

18Due DiligenceArticles 52Corporate Governance19Stakeholder CommunicationArticles 53Stakeholders Communication

Anti-Commercial Bribery and Anti-Corruption

Articles 55Business Ethics21Anti-Unfair CompetitionArticles 56Business Ethics

AppendixAppendix

EnvironmentIssueIndicatorUnit2024

Energy consumption

GasolinekWh1,436,680.23DieselkWh242,131,725.18Low sulfur fuel oilkWh2,806,590,130.45Lubricating oilkWh25,757,866.83Total direct energy consumption kWh3,075,916,402.69ElectricitykWh5,062,713.69Total indirect energy consumption kWh5,062,713.69Total energy consumptionkWh3,080,979,116.38Total energy intensitykWh/ million RMB273,664.12GHG Emissions

Scope 1 GHG emissionsTon of CO

equivalent807,147.24Scope 2 GHG emissionsTon of CO

equivalent 2,716.65Total GHG emissionsTon of CO

equivalent 809,863.89GHG emissions intensity

Ton of CO

equivalent/million RMB

71.94

Water resources

Total water consumptionTon96,470.00Water consumption intensityTon/million RMB8.57Freshwater consumptionTon56,532.00Total water recycling and reuseTon455.00Water cycle and reuse rate%0.74Wastewater

Total wastewater dischargeTon16,917.60Wastewater discharge intensityTon/million RMB1.50Waste gas

Nitrogen oxides Ton21,005.81Sulfur oxidesTon2,414.46Suspended particles and particulate matters Ton519.66Total waste gas emissionsTon23,939.93Waste gas emission intensityTon/million RMB2.13Waste

Total amount of hazardous wasteTon1,309.34Intensity of hazardous wasteTon/million RMB0.12Total amount of non-hazardous wasteTon418.00Intensity of non-hazardous wasteTon/million RMB0.04ConsumablesAmount of paper usedTon12.04Investment inenvironmental protection

Total investment in environmental protectionTen thousand RMB698.25Proportion of total investment in environmentalprotection to operating income

%0.06SocietyIssueIndicatorUnit2024Number of employees

Total number of employeesNumber of employeesPerson1,539By type of employment

Permanent employeesPerson1,532Dispatched laborPerson7Part-time employees Person1,183By gender

MalePerson349FemalePerson55By rank

Top-level managementPerson120Mid-level managementPerson1,357Rank & ?lePerson780

Performance Summary

EnvironmentGRI 302: Energy 2016

302-1Energy consumption within the organizationTackling climate change302-3Energy intensityTackling climate change302-4Reduction of energy consumptionLow-carbon sailingGRI 303: Water Resources and Wastewater 2018303-1Interaction with water as a shared resourceEcological Co-construction303-2Management of water discharge-related impactsEcological Co-construction303-3Water withdrawalEcological Co-construction303-4Water dischargeEcological Co-construction303-5Water consumptionEcological Co-constructionGRI 305: Emission 2016305-1Direct (Scope 1) GHG emissionsTackling climate change305-2Energy indirect (Scope 2) GHG emissionsTackling climate change305-4GHG emissions intensityTackling climate change305-5Reduction of GHG emissionsTackling climate change305-7Nitrogen oxides (NOx), sulfur oxides (SOx), and other signi?cant air emissionsEcological Co-constructionGRI 306: Waste 2020306-1Waste generation and signi?cant waste-related impactsEcological Co-construction306-2Management of signi?cant waste-related impactsEcological Co-construction306-3Waste generatedEcological Co-construction306-5Waste directed to disposalEcological Co-construction

SocietyGRI 401: Recruitment and Employment 2016

401-1New hires and employee turnoverDiversity and Equality401-2

Bene?ts provided to full-time employees that are not provided to temporary orpart-time employees

Care for our employeesGRI 403: Occupational Health and Safety 2018

403-1Occupational health and safety management systemCare for our employees403-2Hazard identi?cation, risk assessment and incident investigationCare for our employees403-3Occupational health serviceCare for our employees403-5Worker training on occupational health and safetyCare for our employees403-6Promotion of worker healthCare for our employees403-7

Prevention and mitigation of occupational health and safety impacts directly linkedby business relationships

Care for our employees403-8Workers covered by an occupational health and safety management systemCare for our employees403-9Work-related injuriesCare for our employees403-10Work-related health issuesCare for our employeesGRI 404: Training and Education 2016

404-1Average hours of training per year per employeeTalent development404-2Programs for upgrading employee skills and transition assistance programsTalent developmentGRI 405: Diversity and Equal Access 2016405-1Diversity of governing bodies and employeesDiversity and Equality

GRI 406: Anti-Discrimination 2016406-1Incidents of discrimination and corrective actions takenDiversity and EqualityGRI 408: Child Labor 2016

408-1Operations and suppliers at signi?cant risk for incidents of child laborDiversity and EqualityGRI 409: Forced or Compulsory Labor 2016

409-1

Operations and suppliers at signi?cant risk for incidents of forced or compulsorylabor

Diversity and EqualityGRI 414: Social Assessment of Suppliers 2016414-1New suppliers that were screened using social criteria

Strengthening Supply Chain

ManagementGRI 418: Customer Privacy 2016

418-1

Substantiated complaints concerning breaches of customer privacy and losses ofcustomer data

Digital Shipping Transformation

AppendixAppendix

Total training hours of employees

MaleHour60,160FemaleHour18,200Top-level managementHour3,085Mid-level managementHour5,885Rank & ?leHour69,390Average number of hours oftraining by gender

MaleHour50.85FemaleHour52.15Average number of hours oftraining by rank

Top-level managementHour56.09Mid-level managementHour49.04Rank & ?leHour51.13Compensation and RevenueCompensation and revenue

Salary per capitaRMB244,847.43Income per capitaRMB7,498,004Supply ChainSupplierTotal number of suppliersNo.4,423By region

China MainlandNo.4,336Hong Kong, Macao and TaiwanNo.36OverseasNo.51

Products and ServicesRecall

Number of incidents recalled for safety andhealth reasons

No.0Complaint

Number of complaints received about productsand services

No.65Handling rate of complaints received aboutproducts and services

%100Number of customer complaints per millionChinese Yuan

No./million RMB0.0058Customer satisfaction%93

Intellectual Property

PatentNumber of patent applicationsNo.0TrademarkNumber of trademarks heldNo.3Copyright

Software copyrightNo.12Number of software titles per million ChineseYuan

No./million RMB0.0011R&D and Innovation

Research and development

Number of R&D employeesPerson71R&D sta? ratio%4.6R&D investmentTen thousand RMB1956.51R&D investment as a percentage of revenue%0.17

Community Charity

Public welfare

Donations outside the communityRMB362,048Investment in community activities for publicgood

RMB46,756Total investment in public welfareRMB408,804Community public welfare investment permillion Chinese Yuan

RMB/million in RMB36.31Employee volunteer hoursHour3,797Employee volunteer hours per employeeHour2.48Social contribution per shareRMB1.50

By age

30 and belowPerson70931-50Person4350 and abovePerson1,532By region

Chinese mainlandPerson0Hong Kong, Macao and TaiwanPerson0

Employee Turnover Rate

Overall turnover rate Turnover rate%12By gender

Male%11Female%14By age

30 and below%1831-50%550 and above%13By region

Chinese mainland%12Hong Kong, Macao and Taiwan%0Overseas%0Occupational Health and Safety

Work-related deathNumber of work-related deathsPerson0Work-related injuries

Number of work-related deaths per million RMBPerson/million RMB0Days of work lost due to occupational injuriesDay147Days of work lost due to occupational injuriesper million RMB

Day/million RMB0.0131Work injury rate%0.13Number of work-related injuriesPerson2Number of work-related accidentsNo.1Number of safety trainees

Number of safety drillsNo.2,942Total Hours of Health and Safety TrainingHour3,528Coverage Rate of Health and Safety Training%100Safety production investment

Investment Amount in Work-related InjuryInsurance

RMB228,716Coverage Rate of Work-related Injury InsurancePersonnel

%100Investment Amount in Work Safety LiabilityInsurance

RMB1,576,268Coverage Rate of Work Safety Liability InsurancePersonnel

%41Development and Training

Total number of trainingsTotal number of trainingsNo.234Employee training investment

Total investment in employee trainingTen thousand RMB295Employee training investment per million RMBTen thousand RMB0.0262Average employee training and developmentinvestment

Ten thousand RMB/person0.19Employee Training CoverageTotal coverage%100Number of trainees by gender

MalePerson1,183FemalePerson349Percentage of training by gender

Male%77Female%23Number of trainees by rank

Top-level managementPerson55Mid-level managementPerson120Rank & ?lePerson1,357Percentage of training by rank

Top-level management%3Mid-level management%8Rank & ?le%89Average number of hours oftraining per employee

Average number of hours of training peremployee

Hour51.15

Reporting Evaluation and Suggestions

Dear readers:

Thank you for reading the 2023 Environmental, Social and Governance Report of Zhonggu Logistics. Tofurther improve the quality of the Report, please ?ll in your feedback and submit it to us. We solemnlypromise to keep your personal information strictly con?dential.You can provide your feedback by contacting:

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Reporting Evaluation andSuggestions

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