Stock Abbreviation: Xiamen XiangyuStock Code: 600057
Address: ??F, Building B, XMXYG CORP. Building, No.?? Xiangyu Road,Fujian FTZ Xiamen Area, Huli District, Xiamen
Telephone: ??-????-???????website:www.xiangyu.cnE-mail: stock@xiangyu.cn
ENVIRONMENTAL, SOCIAL AND
CORPORATE GOVERNANCE
(ESG) REPORTBenefit the World,
Achieve Succe Together
目录
About This Report 1Message from the Chairman 3About Xiamen Xiangyu 5Sustainable Development Management 11
Digital Framework 47Digital System 49Information Security 55
CONTENTS
Empowering SmartXiangyu throughDigitalization
Environmental Management 37Energy Saving and EmissionReduction 40"Three Wastes" Treatment 43
| 02 | 03 |
Embracing Low-Carbon Style fora Green Xiangyu
ESG Performance 102Index 106Reader Feedback 110
Quality Management 59Logistics Capability 62Supplier Management 66
Improving Qualitythrough Steady andInnovative Development
Industry-Academia-ResearchCollaboration 95Industry Cooperation 97
| 04 | 06 |
CultivatingPartnerships forJoint Achievement
Equal Employment 71Remuneration and Bene?ts 73Training and Promotion 76Employee Rights 80Occupational Health and Safety 81Public Welfare Activities 89
FosteringTalent forHarmony
Corporate Governance 17Information Disclosure andInvestor Management 22Risk Management 26Business Ethics 33
Benefiting Allwith RobustGovernance
| 01 | 05 |
2023 Environmental, Social and Corporate Governance (ESG) ReportXiamen Xiangyu Co., Ltd.About This ReportThis Report aims to give a true, accurate and complete picture of our e?orts and achievements in implementing theconcept of high-quality sustainable development to the government and regulators, shareholders and investors,customers, suppliers, employees, the public and other stakeholders.
AbbreviationFull Name
Xiamen Xiangyu, the Company, we, us, ourXiamen Xiangyu Co., Ltd.
Xiangyu AgriculturalHeilongjiang Xiangyu Agricultural Products CorporationXiangyu SuperchainXiangyu Superchain Supply Chain Development Co., Ltd.Xiangdao LogisticsXiangdao Logistics CorporationXiangyu SOENantong Xiangyu Shipbuilding & O?shore Engineering Co., Ltd.Xiangyu New EnergyXiamen Xiangyu New Energy Co., Ltd.Fujian XingdaFujian Xingda Import & Export Trading Co., Ltd.Xiangyu CommoditiesXiamen Xiangyu Commodities Co., Ltd.Xiangyu ResourcesXiamen Xiangyu Resources Co., Ltd.Hubei ChuxiangHubei Chuxiang Supply Chain Group Co., Ltd.Xiamen Great CorporationGreat Corporation （Xiamen）Co., Ltd.Zhuoyu Supply ChainXiamen Zhuoyu Supply Chain Management Co., Ltd.Xiangyu ZhengfengTangshan Xiangyu Zhengfeng International Logistics Co., LtdFujin XiangyuFujin Xiangyu Jingu Agricultural Products Co., Ltd.Suihua XiangyuSuihua Xiangyu Cereals and Oil Technologies Co., Ltd.Xiangming OilsRizhao Xiangming Oils Co., Ltd.Xiamen SingamasXiamen Singamas Import & Export Trading Co., Ltd.PIL Total LogisticsXiamen Xiangyu PIL Total Logistics Co., Ltd.Anyang XiangdaoAnyang Xiangdao Logistics Co., Ltd.Shaanxi XiangdaoShaanxi Xiangdao Logistics Co., Ltd.Liangshan XiangyuLiangshan Xiangyu Supply Chain Co., Ltd.
This Report is made on an annual basis and covers the period from January 1, 2023 to December 31, 2023. To enhance itscomparability and integrity, certain contents have been retroactive to previous years in an appropriate manner.Reporting Cycle and Period
· United Nations 2030 Sustainable Development Goals (SDGs)· Global Reporting Initiative Standards (GRI Standards) issued by Global Sustainability Standards Board· Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-ESG 5.0) issued by theChinese Academy of Social Sciences (CASS)· Guidelines No. 1 of Shanghai Stock Exchange for the Application of the Self-Regulation Rules for Main Board ListedCompanies - Standardized Operation
· Guidelines No. 14 of Shanghai Stock Exchange for the Application of the Self-Regulation Rules for Listed
Companies - Sustainability Report
Basis for Preparation
All the ?nancial data herein are denominated in RMB.
Currency Unit Description
The Company and all members of its board of directors warrant that the information disclosed herein is true,complete and accurate without false records, misleading statements or material omissions.Reliability Assurance
This Report covers Xiamen Xiangyu and its subsidiaries. For ease of expression and reading, the subsidiaries hereinare referred to as the following abbreviations:
Reporting Scope
Address: 11F, Building B, XMXYG CORP. Building, No.85 Xiangyu Road, Fujian FTZ Xiamen Area, Huli District, XiamenTelephone: 0592-6516003Fax: 0592-5051631E-mail: stock@xiangyu.cn
Contact Information
We will publish this Report in electronic forms for the purpose of low carbon and environmental protection. Ifnecessary, you can read the electronic version of this Report on our website (www.xiangyu.cn/index.aspx) and www.cninfo.com.cn.
Access to This Report
2023 Environmental, Social and Corporate Governance (ESG) ReportXiamen Xiangyu Co., Ltd.Chairman's Message
Dear Esteemed Shareholders, Investors, Business Partners,Colleagues, and Friends from all walks of life.In 2023, the global industrial and supply chains haveundergone an unprecedented baptism and reshaping, withthe market being as unpredictable as ever, and challengesand opportunities coexisting. Faced with a complexmacroeconomic environment, we have remained steadfastin our commitment to high-quality development and long-termism. We have continuously advanced the constructionof ESG, enhancing the Company's sustainable developmentcapabilities from the dimensions of environment, society,and corporate governance. We have deeply promotedthe transformation and upgrading of our business model,maintaining resilience amidst the ever-changing landscape.
Maintaining robust governance lays a solid foundation fordevelopment. We have strengthened modern governanceand continuously refined our delegation and managementsystem under the guidance of the national strategy. However,the anomalous events in 2023 remind us that improvingcorporate governance is a long-term, dynamic and continuousprocess. Therefore, we have taken active measures to copewith challenges, enhancing our risk management frameworkand our capability to identify, assess and respond to potentialrisks. The adaptability and resilience of our risk control system,demonstrated through this process, have proven that ourgovernance structure and risk management strategy remaine?ective. At the same time, we have further clari?ed the codeof business ethics and supervision mechanism to ensure strictcompliance of our business activities with laws, regulations andethical standards. We are committed to becoming an industrybenchmark in corporate governance, always prioritizing theprotection of the interests of all investors, especially minorityshareholders, with high standards of transparency and fairness,laying a solid foundation for the Company's sustainabledevelopment.
Pursuing green development to lead industrial transformation.We adhere to the development concept that "lucid watersand lush mountains are invaluable assets", complying withthe national goals of "carbon peaking and carbon neutrality",and promoting low-carbon transformation and upgrades ofindustries. In practice, we have reduced carbon emissions inour operations by employing alternative energy and innovativetechnologies. We have also increased investment in andmaintenance of environmental protection facilities to ensureproper treatment of waste gas, wastewater and solid waste,e?ectively preventing environmental pollution. In addition, wehave vigorously explored the application of digital technologyin energy conservation and emission reduction. We havebuilt systems such as "Yu Lian Tong" and "Smart Logistics" toinnovate on business models and re?ne service management,so as to further enhance the greenization and intelligence ofour supply chain. Through these initiatives, we aim to fostersustainable development through innovation and envision agreener, smarter future for our industry.Prioritizing people to create a better life together. Talent isthe core driving force of enterprise development. We prioritizepeople, always focusing on the well-being of employees. Wecare for the physical and mental health of employees in acomprehensive and multifaceted way through measures suchas health check-ups and psychological support. Meanwhile,we have provided diverse career development opportunitiesand training resources to help employees improve theirprofessional skills and achieve career growth. Moreover,we have established effective incentive mechanisms toacknowledge and reward the efforts of every employee,enhancing their sense of belonging and happiness. Our goalis to grow alongside our employees, enabling every employeeto ?nd space for growth at Xiamen Xiangyu, realize their self-worth, and together build a better life.
Deng Qidong
Contributing to the society to build a harmonious future.We have always adhered to our corporate mission of "Bene?tthe World and Achieve Success Together", and activelyengaged in various social welfare activities to convey theCompany's commitment and social responsibility. In termsof rural revitalization, we have engaged in targeted assistanceand support projects to enhance rural infrastructure andimprove the quality of life of local residents. We also prioritizecontributing to community development through diversechannels such as educational support and cultural exchange,toward building a more harmonious and inclusive society.As we look ahead to 2024, we are committed to enhancingtransparency and fairness in corporate governance,ensuring our steady development by establishing a higherstandard of internal control and compliance system. As forgreen development, we will increase investment in greentechnologies and innovative practices to further minimize theimpact of our operations on the environment and support thelong-standing goal of global carbon neutrality. Regarding socialresponsibility, we will continue to devote ourselves to socialwelfare and contribute to building a more harmonious societythrough educational support, community development andcultural activities. We will advance our transformation to high-quality development by capitalizing on the opportunities in theindustrial and supply chains. Our goal is not only to becomea global leader in supply chain services, but also to integrateour development with environmental protection, socialresponsibility and excellent governance, fostering sustainablegrowth in value for our shareholders, investors, employees,business partners and the broader society.
Chairman of Xiamen Xiangyu Co., Ltd.:
2023 Environmental, Social and Corporate Governance (ESG) ReportXiamen Xiangyu Co., Ltd.
About Xiamen Xiangyu
Xiamen Xiangyu Co., Ltd. is committed to becominga world-class supply chain service company servingnational strategy and regional economic development,and adheres to the strategic thinking of 'rooted in thesupply chains, serving industry chains, and creating valuechains'. Quickly responding to customer demands, weintegrate global quality resources to provide a diversi?edservice portfolio and customize integrated supply chainsolutions through the "Xiangyu Digital Intelligence SupplyChain Integrated Service Platform". We endeavor tobuild a safe, stable, smooth and efficient industrial andsupply chain ecosystem, and create a mutually bene?cialand win-win value-added ecosystem. Currently, we o?ersupply chain services for commodities such as agriculturalproducts, energy chemicals, metal minerals and newenergy, and our business volumes in key categories wherewe hold a competitive edge are among the highest in theindustry. Our customers span over 100 countries, and oursubsidiaries cover major provincial-level administrativeregions in China. We have also established overseasbusiness entities in Singapore, Vietnam, and Indonesia,etc., which serve as hubs for transnational cooperationand bridges for international exchanges, conducive tobuilding a mutually beneficial, diverse, balanced, safeand e?cient open economic system.
Company Pro?le
2023 Environmental, Social and Corporate Governance (ESG) ReportXiamen Xiangyu Co., Ltd.Business Distribution of Xiamen Xiangyu
Overseas Layout
Corporate Culture
We have strategically targeted the countries and regions along the "Belt and Road" and vigorously explored theinternational market by establishing extensive business ties with partners in more than 100 countries. We focus onoverseas quality purchase and sales channels, deeply tap the overseas supply chain demands of large Chinese-fundedenterprises. To better serve global customers, we have established overseas business entities in Singapore, Vietnam, andIndonesia, etc., to empower our international business network and provide our customers with convenient and e?cientlocalized services as "service stations" for our overseas business.
Including metal minerals,agricultural products,energy chemicals, andnew energy, etc.
Including integratedlogistics, agriculturalproducts logistics, andrailway logistics, etc.
Including shipbuilding,mineral processing, andgrease processing, etc.
Commodity BusinessCommodity Logistics
Production andManufacturing
This map is indicative in nature and is intended only for an overview of a speci?c area
? Value creation-centeredCore Values
5-star Behaviors? Assume Responsibility and TakeAction
? Be Pragmatic and E?cient? Be Customer-oriented? Be Open and nclusivev? Be Pleasant and Straightforward
? Bene?t the World, Achieve
Success TogetherMission
? Risks First? Building a Firm Foundation in
the Market
? Cooperation for Win-win Results? Innovative Development? Two-wheel Drive
5 Concepts
? To become a world-class supply
chain service company
Vision
? Grassroots Spirit, Devotionto UndertakingsCorporate Spirit
Main BusinessWe are committed to becoming a world-class supply chain service company and focus on providing one-stop supplychain solutions for manufacturers. Our core services include procurement and supply of raw and auxiliary materials,distribution of finished goods, shearing and processing, logistics services, supply chain finance, and informationconsultations. We pursue ongoing self-innovation to ensure supply chain's stability and e?ciency, promote industrydevelopment in a more e?cient and sustainable way, and jointly grow and create value with customers.
CorporateCulture
ThailandSingapore
Malaysia
The Philippines
JapanSouth KoreaMongolia
Canada
The United States
Mexico
ColombiaPeruChileArgentina
Brazil
FinlandGermanyNetherlandsBritain
FranceSpain
SenegalNigeria
Congo
Kenya
TurkeyUnited Arab EmiratesPakistanSaudi Arabia
IndiaUzbekistan
Zimbabwe
South AfricaMadagascar
Australia
New Zealand
IndonesiaVietnam
2023 Environmental, Social and Corporate Governance (ESG) ReportXiamen Xiangyu Co., Ltd.
Milestones of 2023Data-Driven 2023 : A Performance Overview
China Federation of Logistics & Purchasing
2ndamong China's Top 50 Logistics
Enterprises 2023
China Federation of Logistics & Purchasing
China LogisticsESG Model Enterprise
2023
China Enterprise Confederation, China Enterprise
Directors Association
First Prize
of 2022-2023 National Corporate
Culture OutstandingAchievements
Digital Warehousing Branch of China Federation of
Logistics & Purchasing
Advanced Unitof Building China's Digital Warehousing
Standard System 2023
zhaopin.com, Institute of Social Science Survey of
Peking University
China's Best Employer
2023
Forbes, USA1,323thamongForbes Global 2000 Listed
Companies 2023
Fortune China
Top 500
Chinese-Listed Companies 2023
Net pro?t attributable to shareholders ofthe listed company was RMB
1.574 billion
up
12.53%
year on yearup
15.32%
year on year
up
15.33%
year on yearup
71.09%
year on year
Obtained special credit of RMB
10.6 billion for customers through "Yu Lian Tong Digital Supply
Chain Service System"
Business volume ofmetal minerals was
131.27 million tonnes
Business volume ofenergy chemicals was
73.17 million tonnes
Business volume ofagricultural products was
20.35 million tonnes
Business volume of newenergy was
0.37 million tonnes
EconomicPerformance
Revenue amounted toRMB 459.035 billion
Board of Directorsheld15 meetings
where55 proposalswere consideredandapproved
where 28 proposalswereconsidered and
approved
Board of Supervisorsheld8 meetingsGovernancePerformance
Held6 general
meetingsofshareholders
where 27 proposalswere consideredandapproved
Had a totalof 8,565employees
Employed
veterans
7 disabled
employees
Coverage rate of physical examinationfor positions withoccupationaldisease risks was100%Invested RMB
4.89
million in work safety
Total tax paid: RMB3,228.61 millionSocialPerformance
Invested RMB
6.75 million
in energyconservation andemission reduction
Saved 16,406cubicmeters ofwater annually
Carried out 43volunteeractivities foremployees
1211
2023 Environmental, Social and Corporate Governance (ESG) ReportXiamen Xiangyu Co., Ltd.Sustainable Development ManagementTo become a world-class supply chain service company, we have proactively responded to the 17 SustainableDevelopment Goals (SDGs) of the United Nations. We have improved our performance in environmental protection,use of resources and social responsibility by utilizing innovative technologies such as digitalization and Internet ofThings, and shared our direction and achievements in achieving SDGs with stakeholders through regular informationdisclosure.
We have established a sound ESG management structure, under which the Strategy (Investment and Development)Committee of the Board of Directors and its subordinate ESG Executive Committee are the supervision and guidingbodies, the ESG Management Office is the overall management body for daily ESG work, and subsidiaries are theexecution bodies. Each of subsidiaries and functional departments has appointed ESG specialists as the basic unit ofESG management to e?ectively integrate ESG into our daily operation activities.
We have maintained active communication with stakeholders to identify and evaluate key issues that may a?ect ourreputation, operation results and sustainable development, so as to enhance the transparency and reliability of thisReport.
ESG Governance System
Communication with Stakeholders
ESG Management Structure of Xiamen Xiangyu
Key StakeholdersExpectations and DemandsOur Response
Investors
· Business Expansion· Economic Returns· Normative Governance· Sustainable Development
·Expand market to achieve business growth· Maintain steady operation to ensure continuous pro?tability and
dividends· Keep high-standard governance to ensure integrate, accurate, and
complete information disclosure· Achieve balanced development and contribute to social well-being
Customers
· Stable Supply of Goods· Sales Expansion
· Ensure the continuity and reliability of the supply chain· Explore diversi?ed markets and enhance distribution capabilities
Employees
· Protection of Rights andInterests· Occupational Health and Safety· Training and Promotion· Remuneration and Bene?ts
· Safeguard the legitimate rights and interests of employees· Create a safe and healthy working environment· Provide a platform for continuous learning and career growth· Ensure fair remuneration and comprehensive bene?tsSuppliers
· Performance in Good Faith· Open, Fair and JustProcurement
· Adhere to the spirit of the contract and perform the contract
according to law· Regulate the procurement system for transparent procurement
Governments andRegulators
· Operation Compliance· Paying Taxes in Accordance withthe Law· Compliance with BusinessEthics· Driving Economic Development· Boosting Employment
· Abide by regulations and strictly follow industry best practices· Give back to society and ful?ll statutory tax obligations· Abide by high standards of business ethics with moral guidance· Motivate ourselves to drive regional economic vitality· Create jobs and help local employment
Partners
· Performance in Good Faith· Business Ethics andTransparency
· Adhere to the spirit of the contract and perform the contract
according to law· Advocate ethics and commit to information transparencyCommunity
·Community Development·Environmental Protection·Giving Back to Society
· Engage in the community development to promote local prosperity· Advocate green action to protect the future of the earth· Contribute to realizing the common prosperity of the society
The Public and
Media
·Disclosure of BusinessProgress· Assuming Environmentaland Social Responsibilities
· Make transparent communication and share business
progress in a timely manner· Take responsibility for coordinating environmental
protection with social and economic development
· The top governing body for ESG issues of the Company· Responsible for the formulation, review and approval of ESG policies, strategies and
objectives
· To monitor and review the Company's policies, management, performance andprogress on ESG issues
Board of DirectorsStrategy (Investment and Development) Committee
· The decision-making function as authorized by the Board of Directors,responsible for reporting and advising the Board of Directors· To identify risks and opportunities related to the Company's sustainable
development, conduct research, analysis and risk assessment on the Company'sESG issues, guide and supervise the formulation and implementation of theCompany's ESG policies and objectives, and submit them to the Board ofDirectors for consideration and approval· To review and report to the Board of Directors on the ESG reports of the Company
ESG Executive Committee(Senior management members of the Company)
· Its members are composed of relevant personnel from relevant functional
departments and subsidiaries of the Company· Responsible for providing support to the ESG Executive Committee, implementingESG initiatives and assisting the ESG Executive Committee in its work
ESG Working Group(Key members of relevant functional departments)
1413
2023 Environmental, Social and Corporate Governance (ESG) ReportXiamen Xiangyu Co., Ltd.
We analyze material ESG issues through communication with stakeholders to further identify the focus of our ESGwork. We preliminarily select material issues with reference to the ESG issues focused by MSCI, GRI Standards issuedby the Global Sustainability Standards Board (GSSB), and ESG disclosure of our peers, and comprehensively identifyissues related to our environmental, social and governance impact and impact on the evaluation and decision-making of stakeholders.We obtain feedback from stakeholders through questionnaires, and get the questionnaire results through thedata from the material issues identification process. Then, we prioritize the importance of material issues by twodimensions, i.e. "importance to stakeholders" and "importance to Xiamen Xiangyu", and finally make a matrix ofmaterial ESG issues based on our development strategy and plan by analyzing international and domestic socialresponsibility standards as well as the policies of national and local governments. This matrix provides an importantbasis for our future ESG management.
Material Issues
Material Issues Identi?cation Process of Xiamen Xiangyu
Results of Issues· Based on the results of questionnaire surveys, prioritize issues upon consultation with third parties,while taking account of our actual development strategy, industry key issues and peer performance,and then develop the ?nal matrix of material issues.
· Maintain regular communication with investors, customers, governments, regulators, employees and
other stakeholders, and record the demands of various stakeholders.Communication with Stakeholders
Identi?cation of Issues
· Identify our actual or potential impact on the economy, environment and society based on our
businesses as well as communication with stakeholders. Eighteen ESG issues were preliminarily
selected with reference to GRI standards and other sustainable information disclosure guidelines, MSCI
ESG rating and other evaluation systems, and ESG disclosure of our peers.Evaluation of Issues· Get feedback from stakeholders through questionnaire surveys, which cover two dimensions, namely
"importance to stakeholders" and "importance to Xiamen Xiangyu".
After going through the above material issues identi?cation process, we make the following matrix of material issues:
Matrix of Material Issues of Xiamen Xiangyu
Pro?tabilityLeadingIndustryDevelopment
Management ofEnvironmentalEmergenciesGreen LogisticsEnergy Conservationand EmissionReduction
CorporateGovernanceRisk ManagementInterests of InvestorsBusiness EthicsDigitalization andInformatization
Labor ManagementEmployee Trainingand DevelopmentOccupationalHealth and SafetyCustomer ServicesSupply ChainManagementTechnologyInnovationData and PrivacySecurityRural Revitalizationand CommonProsperity
Environmental IssuesSocial Issues
Corporate Governance
Issues
Economic IssuesList of Material Issues of Xiamen Xiangyu
Importance to Xiamen Xiangyu
Importance to Stakeholders
High
Veryhigh
Veryhigh
1312
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering SmartXiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talent
for Harmony
CultivatingPartnerships forJoint Achievement
1615
2023 Environmental, Social and Corporate Governance (ESG) Report
Bene?ting Allwith RobustGovernance
We constantly enhance our governance and synchronize our corporate strategy with national initiatives to build a solidfoundation for sustainable development. We provide clear, accurate and timely disclosures to ensure e?cient and smoothcommunication with investors. We also fortify our risk management, uphold business ethics, and maintain a strict stanceagainst corruption, driving our company's stable progress.
Embracing Low-Carbon Style for a
Green Xiangyu
Empowering Smart
Xiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talentfor Harmony
CultivatingPartnerships forJoint Achievement
1817
2023 Environmental, Social and Corporate Governance (ESG) Report
Corporate GovernanceWe constantly improve our corporategovernance in strict accordance withthe Company Law, the Securities Law,the Code of Corporate Governance forListed Companies and other relevantlaws and regulations. We have organizedour management and relevantpersonnel to study the requirementsfrom regulations on the reform of theindependent director system in 2023("New Regulations on IndependentDirectors"), and comprehensivelyreviewed our management systembased on our actual situation. Toeffectively implement the NewRegulations on Independent Directors,we comprehensively revised sixregulations in 2024, includingWorking Regulations for IndependentDirectors, Implementation Rules forthe Audit Committee of the Board ofDirectors, Implementation Rules for theRemuneration and Appraisal Committeeof the Board of Directors, Rules ofProcedures for the Board of Directors,Regulations for the Management ofRaised Funds of the Company and theArticles of Association.
Organizational Structure of Xiamen Xiangyu
O?ce of DigitalTransformation
InvestmentDevelopment Dept.ApplicationManagement Dept.
Data Application Dept.
ArchitectureManagement Dept.
General Manager O?ce
Administration Dept.
Finance Dept.
Accounting Dept.
Fund Dept.
Securities Dept.
InvestmentManagement Dept.
Human Resources Dept.Safety Supervision Dept.
ConstructionManagement Dept.
Logistics Audit Dept.
Logistics ManagementDept.
Operation ManagementDept.
Supply ChainDevelopment Dept.
Industrial Research Dept.Internationalization Dept.
Risk Control &Compliance Dept.
Audit Dept.
Legal A?airs Dept.
O?ce of Party Committee
O?ce of DisciplineInspection and SupervisionAdministration
CenterInformationTechnologyCenter
Finance Center
LogisticsManagement
Center
General Manager(Executive Team)
Board of Directors
General Meeting of
Shareholders
Party Committee
Commission forDiscipline InspectionBoard of Supervisors
Secretary of the
BoardRisk Management
CommitteeInvestment Review
CommitteeDigital Transformation
Committee
Senior ManagementQuali?cation AppraisalCommitteeSafe Production
CommitteeBudget Control
Committee
Remuneration andAppraisal Committee
Audit CommitteeStrategy (Investment andDevelopment) Committee
OperationDevelopmentCenter
RiskManagement
CenterStrategicInvestment
Center
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering Smart
Xiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talentfor Harmony
CultivatingPartnerships forJoint Achievement
2019
2023 Environmental, Social and Corporate Governance (ESG) ReportWe de?ne the responsibilities on election, convention and voting through a sound governance structure. In 2023, thegeneral meeting of shareholders, the Board of Directors and the Board of Supervisors of the Company performedtheir duties in accordance with the law and ensured the normalization and transparency of corporate governance,thus providing a solid guarantee for the high-quality development of the Company. During the reporting period, nomajor violation of laws and regulations occurred on the part of the Company, demonstrating our ?rm commitmentto operation compliance and social responsibility.Responsibilities of Three Governance Bodies of Xiamen Xiangyu
Key Performance
:
IndicatorXiamen XiangyuIndustry Average
Number of Directors98.33Percentage of Independent
Directors
33.33%35.85%Percentage of Female Directors11.11%9.43%Average Length of Tenure of
Directors
3.56 years3.30 yearsAverage Age of Directors56.33 years52.63 yearsBackground of Board MembersLogistics, trade, ?nance, law and other ?elds--Number of Supervisors3 (including 1 employee supervisor) 3.67 (including 1.33 employee supervisors)
Xiamen Xiangyu was Selected as the 2023 Best Practice Case of Corporate Governance by China Association for Public Companies
General Meeting ofShareholders
? We have a code of conduct for our controlling shareholders in place. Our controlling shareholdersexercise their rights as investors through the general meeting of shareholders in accordance withthe law, participate in and supervise our decision-making by assigning directors and supervisors incompliance, and do not interfere in our legal decision-making and speci?c production and operationactivities. The Company and its controlling shareholders are independent of each other in terms ofpersonnel, assets, ?nance, institutions and business, and the board of directors, board of supervisorsand internal functional departments of the Company operate independently.? During the reporting period, we held 6 general meetings of shareholders where 27 proposals wereconsidered and approved.Board of Directors
? The board of directors of the Company safeguards the legitimate rights and interests of the
Company and all its shareholders in strict compliance with theArticles of Associationand theRules of Procedures for the Board of Directors.The Board of Directors consists of the Remunerationand Appraisal Committee, the Audit Committee and the Strategy (Investment and Development)Committee, each of which provides consultation and advise to Board of Directors' decision making.? During the reporting period, we held 15 meetings of the Board of Directors, where 55 proposals wereconsidered and approved.Board of Supervisors
? The board of supervisors of the Company supervises the convening procedures of and the matters to
be resolved at the general meeting of shareholders and the Board of Directors, the implementation ofthe resolutions passed at the general meeting of shareholders by the Board of Directors, the ?nancialsituation of the Company, and the performance of duties by the directors and senior management ofthe Company, in strict accordance with theArticles of Associationand theRules of Procedures for theBoard of Supervisors.? During the reporting period, we held 8 meetings of the Board of Supervisors where 28 proposals wereconsidered and approved.
Note: The industry indicator is constructed by selecting 6 representative listed companies (including CITIC Metal, C&D, WZ Group,Xiamen ITG, Xiamen Xiangyu and Zheshang Development) in the ?eld of commodity supply chain service in the A-share market asindustry portfolio, and obtaining relevant data from their 2023 annual report for calculation of indicator value.
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering SmartXiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talentfor Harmony
CultivatingPartnerships forJoint Achievement
2221
2023 Environmental, Social and Corporate Governance (ESG) Report
Information Disclosure and Investor RelationsManagement
We disclose our material information in accordance with laws and regulations, departmental rules, normativedocuments of the stock exchange and theArticles of Association. We have developed theInformation DisclosureManagement Systemto improve the management and quality of our information disclosure. The informationdisclosed by us is true, accurate and complete, and our shareholders can get equal access to our materialinformation. We continue to strengthen the management of insider information and organize the registration ofinsiders in an orderly manner, so as to effectively prevent insider trading and protect the legitimate rights andinterests of investors.
Information Disclosure
Related-party Transactions Management
Prevention of Con?icts of Interest
During the reporting period,we disclosed 84 reports, including 4 regularreports (Chinese and English versions disclosed simultaneously) and80 interimannouncements.
Key Performance
In accordance with the Company Law of the People's Republic of China, theSecurities Law of the People's Republicof China, theWorking Guidelines for the Relationship Between Listed Companies and Investors,the Articles ofAssociationand other relevant laws, regulations, rules and systems, we have formulatedthe Investor RelationsManagement System of Xiamen Xiangyu Co., Ltd.in light of our actual situation.
Investor Relations Management
The Remuneration and Appraisal Committee under the board of directors of the Company performs its duties inaccordance with theImplementation Rules of the Remuneration and Appraisal Committee of the Board of Directorsof Xiamen Xiangyu Co., Ltd.,and is responsible for formulating the standards for the appraisal of directors and seniormanagement, conducting the appraisal, formulating and reviewing the remuneration policies and plans of directorsand senior management, and making recommendations to the Board of Directors on the formulation or change ofequity incentive and stock ownership plans.
To regulate related-party transactions, we have formulated theRelated-party Transaction Management Regulations,which clearly stipulates the de?nition, decision-making, disclosure, punishment and other matters of related-partytransactions, and defines the responsibilities and obligations of the directors, supervisors, senior management,shareholders and other personnel of the Company. We perform related-party transaction procedures in strictcompliance with the Related-party Transaction Management Regulations. Related directors and related shareholdersshall abstain from voting in the review procedures of the board of directors and the general meeting of shareholders.We summarize and disclose, by classification, the actual performance of daily related-party transactions in ourannual report and semi-annual report. We also stipulate matters related to related-party transactions in theRegulations for Management of Raised Fundsto ensure that related-party transactions are voluntary, equal, fair,open, legal and reasonable, and are in line with the interests of the Company and its shareholders.
According to theArticles of Association, directors, supervisors and senior management shall bear the duty of loyaltyto the Company, and shall not, without the consent of the general meeting of shareholders, take advantage of theirpositions to seek business opportunities for themselves or others that should belong to the Company, or operatebusinesses similar to those of the Company for themselves or others, so as to ensure the fairness and transparencyof the decision-making of the Company. At the same time, the Company has formulated theWorking Regulations forIndependent Directors, requiring independent directors to supervise the potential major con?icts of interest betweenthe Company and its controlling shareholders, actual controllers, directors and senior management, in order to urgethe Board of Directors to make decisions in line with the overall interests of the Company and protect the legitimaterights and interests of minority shareholders.
Shares Held by Directors and Senior Management of the Company
NameTitle(s)Shares Held at the End of 2023
Deng QidongChairman975,500Qi WeidongVice Chairman and General Manager1,222,800Zhang ShuiliDirector210,000Lin JunjieDirector0Wu JieDirector0Wang JianliDirector0Xue ZuyunIndependent Director0Liu BinIndependent Director0Liao YixinIndependent Director0Su ZhuquanDeputy General Manager0Cheng YiliangDeputy General Manager940,500Fan ChengyangDeputy General Manager935,400Chen DaizhenDeputy General Manager1,140,000Zheng LuyuDeputy General Manager855,000Liao JieSecretary of the Board570,000Lin JingFinancial Controller426,850
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2023 Environmental, Social and Corporate Governance (ESG) ReportChannels and Contents of Communication Between Xiamen Xiangyu and Investors
During the reporting period,we organized 1 offline performance briefing, 2 onlineperformance briefings,1 Open Day activity for investors, and 1 activity for minority
investors, and participated in1 online collective reception day under the jurisdiction
of Xiamen, and2 special telephone conferences;we participated in31 strategy meetings organized by major sellers and conductedface-to-face communication with more than300 mainstream investment
institutions. We also received more than50 researches from more than 200institutions (on-site or online).
Key Performance
During the reporting period,we answered more than 300 calls from investors,handled more than100 emails of investor relations, and responded to 50questions from investors on SSE E-interactive, with a response rate of 100%.
Key Performance
Communication with Investors
Attaching great importance to communication with investors, we have established reliable and transparentcommunication channels to enhance our image and reputation. We carry out investor communication activities ona regular basis to ensure timely and accurate transmission of information to investors and answer questions, andreduce the risk of information asymmetry for investors. We also give full consideration to investors' opinions andsuggestions when formulating future development strategies and business decisions to ensure that our actions areconsistent with market trends and investors' expectations.
Open Day for Investors - On-site Research of Xiangyu Agricultural by Investment Institutions
In March 2023, 18 investment institutions conducted comprehensive on-site research on our subsidiaryXiangyu Agricultural in Heilongjiang. The research team not only listened to the thematic lectures of ourleaders on our business development, but also had in-depth interaction with the third-party customer WensFoodstu? and cooperative farmers. In addition, the research team also visited the grain purchase and storagebase of Suihua Xiangyu in the mode of "Smart Grain Enterprise", and personally experienced the innovativepractice of Xiangyu Agricultural in the supply chain service of agricultural industry.Moreover, the representatives of investment institutions also communicated face to face with front-linefarmers during the research, to deeply understand the agricultural industry-level supply chain service systemof Xiangyu Agricultural connecting the entire industrial chain.
Investment Institutions Visited the Grain Collection of Suihua Xiangyu, A Subsidiary of Xiamen Xiangyu
Channels of CommunicationContent of Communication
? Announcements and documents? O?cial website of the Company? New media platform? SSE E-interactive? Investor hotline? Facsimile? Email? Investor education base
? Development strategy of the Company? Operation and management information ofthe Company? Environmental, social and governanceinformation of the Company? Cultural development of the Company? Ways, channels and procedures forexercising shareholders' rights, etc.? Investors demand processing information? Risks and challenges that the Company isfacing or may face? Other relevant information of the Company
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2023 Environmental, Social and Corporate Governance (ESG) Report
Awards About Investor RelationsWe focus on investor relations and market capitalization management, and constantly reinforce our corporategovernance standards and operation compliance. Our efforts have been recognized by the capital market as ourshares have been included in the sample stocks of CSI Dividend, SSE 380, Shanghai Stock Connect, FTSE Russelland Belt and Road Index. During the reporting period, our achievements were also widely recognized by socialorganizations, and we received the following honors and awards:
Risk ManagementAs a key player of commodity supply chain services in China, Xiamen Xiangyu has always placed complianceat the forefront of risk management and guided our business activities with the concept of "risk first". With thedynamic changes in the economic environment and regulatory policies and the further implementation of ourinternationalization strategy, we are constantly improving our risk management system to ensure our stabledevelopment in the complex and volatile market. We strengthened compliance management to reduce risks byintensifying risk control measures. We continuously innovated in compliance to cope with challenges. This not onlyensures the safe operation of our assets, but also enhances the anti-risk capability of our industrial and supplychains. All of our business units always maintain awe of compliance management and carry out every step ofoperation in accordance with the standards, so as to ensure the long-term, sustainable development of the Companyand create greater value for shareholders and society.
We are optimizing the risk management strategy to build a comprehensive risk management system, that is, the "onebody, two wings and three engines" mode, to ensure the steady development of business. With a focus on this coresystem, we optimized our internal control manual, re?ned our basic management process, strengthened compliancemanagement measures, further consolidated our risk management foundation, and improved our capability toidentify, evaluate and respond to potential risks. On this basis, we are able to respond to market changes withagility, while ensuring the compliance and e?ciency of business operations, providing solid support for achievingsustainable development goals.
Risk Management System
2022 Investor Relations
Gold AwardPanorama Network (www.p5w.net)
14th Investor Relations
Tianma AwardSecurities Times
7th Best Capital Market Communication Award
7th Best ESG Rising Star Award
China Zhuoyue IR
"I AM A SHAREHOLDER" Activity of Shanghai Stock Exchange for Minority Investors - A Visit to Xiamen Xiangyu
On August 22, 2023, Shanghai Stock Exchange andHuafu Securities organized the "I AM A SHAREHOLDER"activity, in which 24 minority investors and industryanalysts of Huafu Securities were invited to pay a visit toXiamen Xiangyu. During the activity, Liao Jie, secretaryof the board of directors of Xiamen Xiangyu, introducedour main business, business model and future strategicplans to investors and analysts present in detail.Investors also visited our corporate culture space andinquired about our performance growth points, futuredevelopment plan and other questions."I AM A SHAREHOLDER" in Xiamen Xiangyu
2022 and 2023 Q1 Performance Brie?ng
In May 2023, 2022 and 2023Q1 Performance Brie?ngof Xiamen Xiangyu was held in Shanghai, whichattracted more than 200 institutional investors,shareholders, industry analysts and media workersto witness the comprehensive review and panoramicoutlook of Xiamen Xiangyu for the commoditysupply chain industry. This briefing introduced our"Yu Lian Tong" digital supply chain service systemand agricultural industry-level supply chain servicesystem, and invited a number of industrial customersand analysts, such as Haid Group, Tongwei, Chinalco,and Sanyuan Paper, to have in-depth exchangesand share their experience and feelings of using oursupply chain services.
2022 and 2023 Q1 Performance Brie?ng of Xiamen Xiangyu
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2023 Environmental, Social and Corporate Governance (ESG) Report
"One Body, Two Wings and Three Engines" Risk Management System of Xiamen Xiangyu
In 2023, we optimized our risk control structure, customized full-time and part-time risk control personnel accordingto the scale of business units and complexity of business forms, and further strengthened the risk managementresponsibilities of each business unit, to ensure the e?ective implementation of risk control measures. Through theestablishment of an information transmission mechanism, our responsible departments and business units regularlyfeedback the risk control progress and results to the Risk Management Center, and communicate information ina timely manner. The Risk Management Center includes the duty-performance of the risk control heads and riskcontrol contacts of business units into the scope of evaluation and assessment, and strengthens the implementationof risk control requirements through various measures, in order to improve the quality of management.
Currently, we continue to strengthen our internal audit mechanism by carrying out independent audit throughclose cooperation between the audit department and functional departments. We have built a three-dimensionaland top-down risk prevention and control system by training full-time and part-time internal control personnel forsubsidiaries and branches and promoting comprehensive self-examination and self-correction. Our internal auditsystem is divided into the following three levels: the business unit, as the first line of defense, is responsible forimmediate risk identi?cation; the functional management department, as the second line of defense, is responsiblefor providing policy supervision; the audit department and the O?ce of Discipline Inspection and Supervision, asthe third line of defense, are responsible for ensuring the independence and e?ectiveness of audit. In accordancewith the internal control requirements for listed companies, we engage external professional institutions to conductinternal control audits on a regular basis, and have obtained standard unquali?ed audit reports over the years. Thisdemonstrates Xiamen Xiangyu's high standards and e?ective practices in internal control and risk management.
Organizational Structure for Risk Control Management of Xiamen Xiangyu
Risk Identi?cation Process of Xiamen Xiangyu
During the reporting period, we proactively organized comprehensive risk assessment by risk managementfunctional departments and investors from time to time to timely discover and deal with potential risks. Our riskassessment mechanism follows three key steps, namely risk identification, risk analysis and risk evaluation, toensure accurate identi?cation of risk points that may cause signi?cant or general losses to the Company.Our risk assessment mechanism, characterized by efficiency and systematization, can effectively identify, classifyand prioritize potential risks, and formulate and adopt response measures accordingly. For example, to prevent andcontrol corruption risks, we have taken more measures to integrate the prevention and control of corruption risksinto our entire business risk management system. We have developed a specialManual for Prevention and Controlof Corruption Risks, under which we identi?ed and screened 208 potential corruption risk points, which is conducivefor us to understand possible risk areas more clearly and take preventive measures. In addition, we have carefullysupervised nearly 800 middle-level and above managers and their speci?c associates, especially in key areas suchas marriage, business, real estate and investment. By establishing and implementing this supervision mechanism,we have transformed from traditional "passive investigation" to "self-examination and self-correction", which notonly enhances the initiative and foresight of our risk management, but also helps us build a more transparent andincorrupt corporate culture.
Risk Identi?cation and Management
? Identify whether there are risks exist in each business unit, important business activityand key business processes of the Company? Clearly de?ne the identi?ed risks and their characteristics, and analyze and describe the
possibility and conditions of risk occurrence? Assess the impact of risk on the achievement of corporate goals, etc.
RiskIdenti?cationRiskAnalysisRiskAssessment
Risk ManagementCommittee
Risk ControlResponsibleDepartment(Functional RiskControl Partner)
Full-time Post inClass A and Class BBusiness Units
Part-time Post inClass C BusinessUnits
Risk Controland ComplianceDepartment
Legal A?airsDepartment
Audit Department
General Manager of
SubsidiariesRisk Control HeadsRisk Control Contacts
Risk Management
Center
? The internal control construction cycle of "Risk List - Internal Control Manual - Internal ControlE?ectiveness Evaluation - Internal Control Assessment" is taken as "One Body".One Body
?The risk control digitalization, risk control empowerment, and risk control organizational capacitybuilding are taken as "Three Engines".Three Engines
? The basic management cycle of "Normative Compilation - Operation Manual - Release of
Compilation Manual - Publicity and Education of Compilation Manual -Quali?cation Examination- Regular Inspection and Correction", and the compliance system cycle of "Compliance RiskIdentification and Assessment - Planning to Solve Compliance Risks and Achieve Goals - PlanImplementation and Compliance Risk Control - Performance Evaluation and Compliance Report -Management of Non-Compliance and Continuous Improvement" are taken as "Two Wings".
Two Wings
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2023 Environmental, Social and Corporate Governance (ESG) ReportOur risk assessment methodology focuses on two key dimensions, i.e. "probability" and "impact", toensure comprehensive identification and assessment of potential risks. The "probability" evaluationcriterion is mainly based on historical data, including the frequency and duration of similar events, whilethe "impact" evaluation criterion comprehensively judges the potential impact of risk events on thefinancial status, reputation, employees and market of a company. Based on the above criteria, we havebuilt a comprehensive risk map, covering 18 main risks, including but not limited to customer credit risk,cargo right risk, occupational moral risk, and business risk, etc. We dynamically identify and regularlyupdate the list of key risks in light of changes in the external environment and our own managementrequirements. In 2023, we identified five key risks and formulated corresponding management measuresto reduce uncertainty and potential losses.
We have carried out comprehensive internal and external compliance training to ensure that all of ouremployees are fully aware of and strictly abide by relevant laws and regulations, enhance their abilityto identify and prevent legal risks in their daily work, and then provide guarantee for the legal andcompliant operation of the Company.
Key Risks and Management Measures of Xiamen Xiangyu
During the reporting period, we launched risk control workshops, aiming to build a stronger and more adaptable riskmanagement team through education and training. The improvement of employees' professional literacy and riskmanagement skills helps us to identify and manage risks more e?ectively, and ensure our steady operation and long-term development.
Risk Management Training
Risk Control WorkshopIn May 2023, we launched Phase I risk control workshop for risk control contacts of all business units. Theworkshop, with 50 risk control personnel attended, aims to enhance the overall standard and e?ciency of ourrisk management. The training covers numerous key areas, including evaluation methods for internal controle?ectiveness, case introduction, review and practice of abnormal cases, system deconstruction and key-pointconnection, and e?ective service methods for the duty-performance of functional risk control, etc.
Photo of Students of Phase I Risk Control Workshop of Xiamen Xiangyu
Compliance Month CarnivalIn October 2023, Xiamen Xiangyu launched Compliance Month Carnival for all employees, with thousandsof employees participated. Through colorful displays, interactions and professional lectures, our employeesdeeply understood regulations and requirements, and enhanced their compliance awareness, which laid asolid foundation for jointly building a healthy and transparent corporate governance environment.
Photo of Compliance Month Carnival of Xiamen Xiangyu
Signi?cant RisksManagement Measures
CustomerCredit Risk
(1) Clarify access standards for various types of customers;
(2) Match different license schemes and management requirements for customers of different risk
categories;
(3) Dynamically track customers, including but not limited to negative public opinion tracking, abnormal
information management, margin management, etc.;
(4) Make clear the overdue disposal plan and increase the disposal e?orts led by the person in charge of the
business unit.
Cargo Right Risk
(1) Improve the access mechanism for logistics suppliers;
(2) Adhere to the principle of warehouse inspection without ?xed person, time and post;
(3) Strengthen logistics document management;
(4) Insure in time.
OccupationalMoral Risk
(1) Identify high-risk groups and strengthen management;
(2) Strengthen the publicity of cases and other ideologies;
(3) Strengthen punishment and warning publicity of typical cases.
Business Risk
(1) Improve the access mechanism for new businesses;
(2) Strengthen the management of regular review of new businesses;
(3) Strengthen team capabilities, including risk management, research, operation and disposal capabilities.
Price Risk
(1) Establish market analysis, research and tracking mechanism, and strengthen review management;
(2) Regulate derivatives operation, hedging, and unilateral operations;
(3) Strengthen the implementation of operation plans.
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Compliance Management ForumIn October 2023, Xiamen Xiangyu held a compliance management forum for company leaders, senior executivesof each business unit, financial controllers, risk control personnel and interested employees, attracting morethan 2,300 online and o?ine participants. The forum specially invited external research institutions to share andexchange topics on compliance management and risk prevention of supply chain business. Representatives fromstate-owned assets, audit and other regulators also attended the forum to give some guidance. Through caseanalysis, theme discussion and other forms, employees have a more comprehensive and in-depth knowledge ofthe risk control compliance of companies in the supply chain sector.
Compliance Management Forum of Xiamen Xiangyu
We comply with the applicable tax laws, regulations and rules of the place where we operate in our daily operations.We have formulated theTax Management System, which aims to regulate the tax management process, reasonablycontrol tax risks, and prevent tax irregularities. Through this system, we have clari?ed the division of responsibilitiesand operation procedures of tax work, speci?ed speci?c steps for tax compliance review, and re?ned the measuresto control tax risks. In addition, we proactively respond to changes in tax laws and requirements of regulatoryauthorities with regular tax risk self-check and continuous review, optimization of our tax management system to bein line with the latest laws and regulations. In 2023, the total amount of tax paid by the Company was 3,228.61 millionRMB with no tax violations occurred.
We take tax risk as one of our priorities in risk management, and are committed to managing tax risks in a closedloop through the process of "prior analysis, compliance with laws and regulations, risk self-inspection, review andrecti?cation".
We strive to foster a risk culture and enhance the awareness of tax-related risks of all our employees through thetraining and publicity of our conventional policies on tax risks. In 2023, we held 35 tax compliance training sessionsand held quarterly tax tests on a regular basis. The training sessions cover various topics, including interpretationand training of domestic and foreign tax policies, sharing of tax practices, and risk prevention of key tax-relatedissues in each sector. 39 employees participated in the regular training sessions held through the tax capacity team,with the average test quali?cation rate being more than 85%. In October 2023, we organized a tax publicity activityfor the Risk Control Compliance Month, where we sorted out tax knowledge closely related to our employees andbusiness, made brochures, and launched Q&A activities, with an aim to reinforce the risk prevention awareness of allour employees for tax issues.
Tax Risk Management Measures of Xiamen Xiangyu
We, empowered by the tax capacity building team and backed by the diligent duty-performance of company-wide tax partners at all levels, closely monitor the changesin tax laws, profoundly analyze the impact of such changes on our tax-relatedbusiness, and initiatively empower business departments, hence strengthening thecontrol of tax risks from the source.In addition to the annual tax self-inspection completed by companies at all levels,we have organized several tax self-inspections or examinations for tax-relatedscenarios, such as withholding and payment of non-trade foreign exchange payment,tax declaration, normalization of tax accounting and additional credit of VAT, tocomprehensively investigate risk points, formulate the recti?cation list and urge itsimplementation item by item
We push forward with tax regulator-enterprise collaboration by making an in-depth analysis of tax risks via the tax collaboration case database, and re?ning taxmanagement measures through self-examinationTax Management
Tax Compliance Management
Tax Risk Management
Tax Compliance Training
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Business Ethics
We are committed to developing a high-standard occupational ethics framework. For this purpose, we haveformulated several regulations such asOccupational Moral Risk Governance RegulationsandAnti-Fraud ManagementRegulationsto regulate employees' behaviors and strengthen management of their moral risk, in a bid to cultivate aloyal and honest team and protect the interests and reputation of the Company.To improve the effectiveness of our supervision mechanism, we have formulated theInterim Measures forAcceptance of Complaint Reporting and Disposal of Problem Clues.The measures clarify the classification ofcomplaint reporting, such as accusation, criticism, suggestion and appeal, and ensure that discipline inspectionand supervision institutions at all levels can handle each complaint in a serious and normative manner, resolutelysafeguard the transparency and fairness of supervision, and e?ectively protect the privacy, rights and interests ofwhistleblowers.Meanwhile, we have innovated on measures to prevent and control corruption risks, including formulating corruptionrisk prevention and control manual and launching occupational ethics self-examination and self-correction system,to escort the steady operation of our supply chain business.Complaint Acceptance Process of Xiamen Xiangyu
The 3rd Anti-corruption Culture Development Education MonthFrom March to April 2023, our Commission for Discipline Inspection carried out anti-corruption educationactivities centering on "Three Ones"
, and intensified comprehensive and strict corporate governancewith perseverance and persistence, striving to create a clean and aggressive political ecology. We alsostepped up efforts on anti-corruption culture development by visiting the education base on the historyof revolution, planning the handicrafts production activities with the theme of anti-corruption, andholding exchanges on family style and education books.
Anti-corruption Education Activities of Xiamen Xiangyu
"Three Ones": one characteristic anti-corruption culture publicity activity, one exchange of family style and education books, onetalk about anti-corruption
Anti-corruption Training With the Theme of "Adhering to the Bottom Line of Discipline and Ensuring theSafety of Duty Performance"In June 2023, we carried out an anti-corruption training with the theme of "Adhering to the Bottom Lineof Discipline and Ensuring the Safety of Duty Performance" to enhance risk awareness and build a soliddefense line of anti-corruption, which attracted about 800 employees. The training was conducted in variousforms such as case analysis and interactive discussion, so that employees can learn and re?ect in the actualsituation and gain a deeper understanding of anti-corruption awareness and occupational code of conduct.
Anti-corruption Training of Xiamen Xiangyu
During the reporting period,we held 15 anti-corruption training sessions, with
2,000 employees attended, and 788 employees signed the Anti-corruptionCommitment Letter.
Key Performance
Acceptance
Submit forApproval
ProcessingDisposalFeedback
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2023 Environmental, Social and Corporate Governance (ESG) Report
Xiamen Xiangyu actively implements national environmental policies, strengthens environmental management andestablishes certification systems. We invest in environmental facilities and regularly conduct emergency response drills toenhance our ability to address environmental risks. To support low-carbon development strategies, we actively organizeenvironmental activities, foster a green culture, and promote energy-saving and emission-reduction measures. We promote agreen lifestyle and encourage our employees and partners to participate in environmental protection a to achieve harmoniouscoexistence between our enterprise and the environment.
Embracing Low-CarbonStyle for a GreenXiangyu
Embracing Low-Carbon Style for aGreen Xiangyu
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Digitalization
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Environmental ManagementTheOccupational Health, Safety and Environmental (OHSE) Management Manualformulated by Xiamen Xiangyudemonstrates our unwavering commitment to employee occupational health, safety and environmental protection.The manual defines OHSE policies and strategic goals, establishes core values and concepts of "Safety First,Environment Paramount, Human-oriented and Equipment Intact", and creates a safe, healthy and environment-friendly workplace to enhance employee wellbeing and boost our sustainable development. During the reportingperiod, all of our subsidiaries, e.g. Suihua Xiangyu, Xiangyu Shipbuilding & Offshore Engineering (SOE), ZhuoyuSupply Chain, Xiamen Singamas and Xiangyu New Energy, have been certified and verified by the ISO14001Environmental Management System. It marks our international recognition in environmental management practices,and further cements our leading position in environmental protection and sustainable development.Xiamen Xiangyu's OHSE Policies and Strategic Goals
The Company attaches importance to environmental protection and sustainable development, and activelypromotes the development of environmental protection projects. To demonstrate our commitment to environmentalprotection, we e?ectively reduce environmental impact and improve the quality of air and water by cutting pollutantemissions and enhancing resource utilization e?ciency.
Development of Environmental Protection Projects
Automatic Car Wash Conveyor Construction ProjectAnyang Xiangdao provides automatic car washservices with high-pressure water nozzles, enhancinge?cient water use without chemical cleansers toreduce emissions from wastewater and chemicals.This equipment can reduce dust pollution at theoperation site, and e?ectively safeguard workers'wellbeing. In addition, its recycling function facilitateswastewater ?ltration, sedimentation and disposal,thereby reducing water waste and environmentalpollution from car washing.
Automatic Car Wash Conveyor Construction Project of Anyang Xiangdao
Human-centric focus,putting prevention first,identifying and controllingrisks beforehand, creatinga harmonious and safeenvironment, and pursuingsustainable development
Zero accident, zeropollution and zero loss, andbuilding a reputation asa respectful supply chaininvestment and operationservice provider
PoliciesStrategic goals
ISO14001 Certi?cation Obtained by Subsidiaries of Xiamen Xiangyu
During the reporting period, our investment in environmental protectionamounted toRMB 3.30 million, while our total investment in energysaving and emission reduction reachedRMB 6.75 million.
Key Performance
Embracing Low-Carbon Style for a
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Empowering Smart
Xiangyu throughDigitalization
Improving Quality
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CultivatingPartnerships forJoint Achievement
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2023 Environmental, Social and Corporate Governance (ESG) Report
The Company adopts forward-looking measures, including regular drills for environmental emergency management, toenhance our ability to prevent and respond to sudden environmental incidents. Our goal is to minimize environmentaldamage and potential casualties, ensure that the Company can act swiftly and effectively in case of emergency, andimplement our long-term commitment to employee safety, environment and sustainable development.
Environmental Emergency Management
Emergency Preparedness Drill for Smoke EmissionsIn May 2023, Fujin Xiangyu organized an emergencypreparedness drill for smoke emissions, simulating short-term or temporary excess smoke and dust emissions causedby slight pipeline clogging, equipment failure or excessdust. Upon discovery of these abnormal conditions, teammembers promptly switched to backup equipment, andproactively addressed and troubleshot the relevant failures.This drill enhances the Company's ability to monitor anddeal with environmental pollution accidents, minimizes thehazards posed to personnel and the environment, and helpsnormalize the Company's emergency response process.
Emergency Preparedness Drill for SmokeEmissions of Fujin Xiangyu
To further enhance employees' awareness of environmental protection, during the reporting period, we plannedand organized a series of environmental protection-themed volunteer services, exhibitions and presentations.These activities enhance employees' environmental protection awareness, encourage employees to incorporateenvironmental protection concept into their daily lives, demonstrate our sense of responsibility as corporate citizens,and contribute to a sustainable future.
Environmental Protection Activities
"Seedling Planting" Day Event
In March 2023, Anyang Xiangdao organized a "SeedlingPlanting" Day event themed "common developmentof clear waters and green mountains, and joint effortsin energy saving and emission reduction". During thisevent, 23 employees planted 6 Ligustrum lucidumseedlings and over 1,000 Carthusian Pink seedlings,and sprinkled grass seeds over more than 100 squaremeters. The participating employees took on anexemplary leading role in fostering green hope in thesoil, contributing to the development of clear waters andgreen mountains.
"Seedling Planting" Day Event of Anyang
Xiangdao
Energy Management
Energy Saving and Emission Reduction
Xiamen Xiangyu and our subsidiaries consistently explore energy-saving and emission-reduction measures, includingdecreasing the use of fossil fuels by adopting new energy vehicles and minimizing paper consumption by leveragingdigital technology. Our goal is to deepen the implementation of energy-saving and emission-reduction strategies,and develop a green, e?cient and sustainable model for corporate development.
Energy consumption data
Key PerformanceDuring the reporting period, according to incomplete statistics, the total amount ofnatural gas, raw coal, diesel, gasoline and outsourced electricity consumed by Xiangdao
Logistics, Xiangyu Agricultural, Xiangyu Superchain, Xiangming Oils, Liangshan Xiangyu,
Xiangyu Zhengfeng, and other entities in the fields of production,processing,
warehousing and logistics in 2023 is estimated to be66,533.49 tonnes of carbondioxide equivalent (tCO
e), representing a decrease of 1,836.72 tCO
e compared to2022.
TypeConsumptionUnitRaw coal23,768.91tFuel oil
190.29
tDiesel12,110,990.80LGasoline360,421.01LNatural gas431,369m
Steam173,202.45m
Outsourced electricity36,232,975.20kWh
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2023 Environmental, Social and Corporate Governance (ESG) Report
Expanded Heater Renovation Project for Condensate Water and Hot WindXiangming Oils made technological carbon reduction as its core focus, promoting energy saving and emissionreduction through refined management and technological innovation. Regarding steam consumption, itinnovated drying methods from "hot wind machine + steam" into "hot wind machine + condensate waterfrom steam", and improved the flow control of fines catcher nozzles, reducing steam consumption. Byimplementing the digital management and control system, it automatically captured production data andconducted comparative analysis, providing strong support for re?ned management. This initiative is expectedto reduce annual steam consumption by 16,000 tonnes and carbon emission by 1,163.88 tonnes (an estimatedequivalent of the carbon emissions from the production of 129 cars).
Expanded Heater Renovation Project of Xiangming Oils for Condensate Water and Hot Wind
Water Resources ManagementWater resources consumption data
Key PerformanceDuring the reporting period, the Company annually conserved a total of 16,406 m
of water directly through water conservation measures.
Xiamen Xiangyu demonstrates its commitment to environmental protection by promoting clean energy use,adjusting transport structures and continuously advancing the digital and intelligent transformation of the logisticsindustry, and to making every e?ort to achieve global climate goals.
Green Logistics
Clean energy useTransport structure adjustment
Digital and intelligenttransformation of the logistics
industry? Promoting the use of EVs, HFCVs,NGVs and other clean energyvehicles to reduce relianceon traditional gasoline andfuels, thus decreasing carbonemissions during transportation
? Implementing multi-modaltransportation and collaborativeuse of di?erent modes oftransport, e.g. the combined useof rail, water and road transport,to reduce reliance on roadtransport with relatively highcarbon emissions and decreaseoverall carbon emissions duringtransportation
? Establishing a comprehensiveXiamen Xiangyu service platformfor digital and intelligent supplychain to enhance cost reductionand e?ciency increase throughtechnological means, and tofacilitate green and low carbontransformation of the bulklogistics industry
Green Logistics Development Initiative of Xiamen Xiangyu
TypeConsumptionUnitTotal water use170,860m
Recycled/reused water16,406m
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2023 Environmental, Social and Corporate Governance (ESG) Report
"Three Wastes" TreatmentXiamen Xiangyu strictly complies with theAdministrative Measures for Environmental Protection, requiring its subsidiariesto establish and implement specific environmental protection management systems. These systems cover themanagement, monitoring, emission data analysis, processing and control of "three wastes" emission points to ensure thee?ective operation of environmental protection facilities.The data on the Company's gaseous pollutant emissions, water pollutant emissions and waste emissions are as follows:
Achieving the Transition "from Road Transport to Rail Transport", and Leveraging the Green Bene?ts ofMulti-modal TransportGiven the fact that rail transport consumes only 15% of the energy and emits 8% of the pollutants comparedto road transport, Xiamen Xiangyu successfully achieved the transition "from road transport to rail transport"regarding cement clinker, kaolin and other varieties by leveraging unique advantages of self-ownedrailway lines and open-top container transportation. This transition further cements the green conversionachievements in the logistics industry, and significantly reduces comprehensive energy consumption andpollutant emissions in terms of logistics. During the reporting period, Xiamen Xiangyu transported 12 milliontonnes of goods via our "from road transport to rail transport" route, resulting in a decrease of 0.4 milliontransportation vehicles, and a deduction of 2.20 million tonnes in carbon emissions.Application of Xiangyu Superchain's Digital and Intelligent Technologies in Promoting Green and LowCarbon Transformation of the Logistics IndustryXiangyu Superchain embraced digital and intelligent concepts, drove cost reduction and e?ciency increasethrough technological means, and promoted the transformation of the bulk logistics industry towards agreener and low-carbon future. The Company also built a digital warehouse equipped with IoT, peripheralcomputing, AI intelligent analysis and other smart technologies, which allows for the visualization of title togoods and reduces physical visits to o?ine warehouses. The Company introduced a comprehensive digitalapplication for signatures and seals, enabling paperless operations throughout the process of goods transferinto and out of warehouses. All these e?orts have resulted in an annual reduction of 6,028.8 tonnes in carbonoxide emissions.
Reduction of Chemicals by the Sewage Treatment PlantXiangming Oils strengthened refined management and implemented the sustainable developmentconcept from the source that generates wastewater. According to statistics, untreated wastewaterrequires 80kg of concentrated sulfuric acid (at a unit price of approx. RMB 650 per t) and 100kg of calciumhydroxide (at a unit price of approx. RMB 1,350 per t) for disposal on a daily basis. The refinementplant has recycled the water generated from water washing through the refining process, significantlyreducing the content of oil and soap in wastewater and the amount of concentrated sulfuric acid, calciumhydroxide and other hazardous chemicals in the process of wastewater treatment.
Reduction of Chemicals by the Sewage Treatment Plant of Xiangming Oils
CategorySubcategoryUnit Data in 2023
Gaseous pollutant emissions
Total gaseous waste emissionsm
156,734,937Particles mg/m
90.789
Oxynitridemg/m
443.735
Oxysul?demg/m
VOCs emissionsmg/m
20.1
CategorySubcategoryUnit Data in 2023
Water pollutant emissions
Total wastewater emissionsm
55,063Chemical oxygen demand (COD)mg/L
8.749
Five-day biochemical oxygen demand (BOD5)mg/L
2.039
Suspended solidsmg/L
1.66
Ammonia nitrogenmg/L
0.484
Total phosphorusmg/L
0.8782
Waste emissions
Total general solid wastet2,086.7Total hazardous wastet
4.47354
Embracing Low-Carbon Style for a
Green Xiangyu
Empowering SmartXiangyu through
Digitalization
Improving Qualitythrough Steadyand InnovativeDevelopment
Fostering Talentfor Harmony
CultivatingPartnerships forJoint Achievement
4645
2023 Environmental, Social and Corporate Governance (ESG) Report
Focusing on three core objectives (i.e. expanding incremental markets, improving service efficiency and upgrading businesspatterns), Xiamen Xiangyu consistently explores and implements digital transformation strategies. The Company activelyadvances technological innovation, leveraging extensive business data, customer resources, and diverse application scenarios.It has successfully developed key digital tools, including "Yu Lian Tong", a digital supply chain service system, and an intelligentlogistics service system.. In the process of digital transformation, the Company prioritizes information security, having establisheda comprehensive information security and protection system that integrates management improvements and technologicalapplications. This includes the formulation of rigorous information security policies, strengthening employees' informationsecurity awareness through training, adopting advanced data encryption and protection technologies, and the establishment of anemergency response mechanism to ensure the timely identi?cation and handling of various information security threats.
Empowering SmartXiangyu throughDigitalization
Embracing Low-Carbon Style for a
Green Xiangyu
Empowering Smart
Xiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talentfor Harmony
CultivatingPartnerships forJoint Achievement
4847
2023 Environmental, Social and Corporate Governance (ESG) ReportDigital FrameworkTo enhance the level of digital construction, Xiamen Xiangyu formulates comprehensive digital transformationstrategies and builds a systematic organizational structure, help clarifying the direction and tasks for smoothimplementation of digital transformation strategies.
Xiamen Xiangyu's digital transformation strategy emphasizes the principles of "overall planning, staged implementationand emergency first", ensuring targeted and gradual advancement of digital projects. Through data-driven, intelligentand synergistic online business, the Company is committed to becoming a leader in intelligent supply chain services anda leading pioneer in the industrial Internet, and is focused on ?ve key tasks: customer-centric focus, quality and e?ciencyimprovement, industrial interlink, agile response and organizational transformation.
To ensure the smooth implementation of digital transformation strategies, the Company actively advancesthe development of the digital organizational framework, and a team of executives has established a DigitalTransformation Committee, responsible for making decisions on digital initiatives. The Digital Transformation O?ceis responsible for coordinating and driving key strategic projects at the company level, ensuring e?ective integrationof digital demands into various business lines. As dual engines for execution, the Company's Information Center andXiamen Xiangyu Technology Co., Ltd. are responsible for the full implementation of digital strategies.
Digital Transformation Strategy
Digital Organizational Framework
Digital Transformation Organizational System of Xiamen Xiangyu
In 2023, within the digital transformation organizational framework, the Company adopted a series of measuresto establish and intensify a digital partnership framework. We actively advertise and promote digital culture, andaddress issues such as weaknesses in front-line digital capability and frequent sta? turnover, ensuring the stabilityand continuity of the digital transformation process. These e?orts lead to optimized business processes, improvedoperational e?ciency and bolstered market competitiveness.
Key PerformanceDuring the reporting period, the Company actively built a digital partnershipframework,under which it selected 30 individuals to lead various digital business lines,and appointed30 digital functional partners and 100+ digital business partners. The
Company manages these roles using acertication-based employment list to ensure
the stability of digital partners,and helps our digital partners improve their practical
skills through both internal and external training programs.
Key Performance
O?ering a Diverse Range of Courses to Promote Digital Culture Cultivation and EducationDuring the reporting period, the Company o?ered digital courses to employees at various levels to vigorouslyaccelerate our digital transformation. This program covers a series of digital and intelligent "Sailing" coursesfor grassroots employees, digital and intelligent "Wave Breaking" courses for mid-level employees, and"Special Executive Training Camp" courses for executive officers. The smooth implementation of thesecourses not only improved employees' awareness of digital transformation, but also strengthened their abilityto participate in and drive digital progress.
Xiamen Xiangyu “Sailing” series
of Courses
Xiamen Xiangyu "Breaking Waves"
series of Courses
Xiamen Xiangyu “Special Executive
Training Camp” series of Courses
Digital Transformation Committee
Digital Transformation O?ce
Business Lines
Digital functional and business organizations
XiangyuTechnologyThe Company'sInformation Center
Technical Lines
During the reporting period, the Company's Digital Transformation Ofce and IT Centerorganized35 inter-departmental digital transformation training sessions for 1,000+employees throughout the year.
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering Smart
Xiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talentfor Harmony
CultivatingPartnerships forJoint Achievement
5049
2023 Environmental, Social and Corporate Governance (ESG) Report
Digital SystemFocusing on three core objectives (i.e. expanding incremental markets, improving service e?ciency and upgradingbusiness patterns), Xiamen Xiangyu establishes a variety of digital systems by leveraging extensive business data,abundant customer resources and diverse application scenarios.
"Yu Lian Tong" is a transparent and e?cient system designed to provide medium-sized, small and micro enterprises(MSMEs) with ?nancing pathways using cutting-edge technologies such as blockchain, AI and IoT. This system helpsMSMEs overcome capital bottlenecks in their development process, and promotes the sustainable development ofthe economic society.Xiamen Xiangyu has been continuously optimizing the technical structure and product functions of "Yu Lian Tong"since its launch in 2018, to ensure the security, stability and scalability of the system. In 2023, we established "XiamenYu Lian Tong Intelligent and Smart Supply Chain Technology Co., Ltd.", specializing in the operation and promotionof the system.
Digital Supply Chain Service System Named "Yu Lian Tong"
"Yu Lian Tong" Won the "Dingge Award" as a Role Model in
Supply Chain Transformation
"Yu Lian Tong" Won the "Outstanding FinancialCase in China Logistics and Supply Chain" 2022"Yu Lian Tong" builds a reliable bridge for supply chain data between customers and banks by leveraging XiamenXiangyu's strengths in terms of "logistics capability, industry chain integration capability, technological systemsand commodity sales channels". It successfully reduces financing costs for medium-sized and small enterprisesby 10% to 40% compared to other non-banking financing channels, and empowers the bank-end risk controland management by leveraging capabilities such as "goods management, industry knowledge, traceability andrealizability". Meanwhile, "Yu Lian Tong" enables whole-process online operations, allowing enterprises to initiate?nancing requests with the click of a button. It takes only 5 to 10 minutes to complete all operations involved in theentire process from pledge to the granting of bank loans, thereby expanding ?nancing channels, improving ?nancinge?ciency and reducing ?nancing costs for enterprises.
Financial Pain Points of the Traditional Supply Chain
Yu Lian Tong's Core Competitive Strengths
? Global "road, rail, water
and warehouse" logisticsresource landscape? Management experience inbulk commodities
? Assisting banks to keep an
eye on the market? Commodity sales channels? Helping banks realize goods? Building digital and intelligent
Xiamen Xiangyu strategically? Building an intelligentlogistics service system andan online shipping platform? Interlink and interconnectionwith banks
Logistics capability
Commodity sales channelsTechnological Systems
? Industry research? Integration of upstream anddownstream resources? Comprehensive supply chainservices
Industry chain integrationcapability
Goods management
Flexible realizabilityClear traceability
Industry knowledgeYu Lian Tong's CoreCompetitive Strengths
Enterprises Banks
? Lack of credit based on ?nancial statements,and small credit? Lack of ?xed assets available for mortgage, and
tying up of large funds for order placement andinventory? Low e?ciency in loan approvals from traditional?nancing products, failure to meet the actualneeds of enterprises, and a?ecting the stabilityand security of their capital chains
? Di?culty in personal property supervision,and unclear title to goods? Di?culty in data penetration and lowreliability
? Price ?uctuation and di?culty in goods valuemanagement
? Lack of self-owned channels and time-consuming realization cycle
Lack of reliable data bridgeDi?cult, costly and slow ?nancingDi?culty in risk control, valuationand realization
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering SmartXiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talent
for Harmony
CultivatingPartnerships forJoint Achievement
5251
2023 Environmental, Social and Corporate Governance (ESG) Report
"Yu Lian Tong" Helped Banks Implement Inclusive FinanceXiamen Branch of Bank of Communications serves small and micro enterprises (SMEs) by actively adhering tonational inclusive ?nance policies. SME owners in Xiamen Xiangyu's digital warehouse need to vitalize inventoryfunds. In collaboration with the Bank of Communications, the Company provides customers with electronicwarehouse receipt pledge financing services through "Yu Lian Tong". These customers operate across variousindustries such as plastics, rubber, pulp paper, nonferrous metals and agricultural products, granting facilities andloans to more than 50 SMEs. E?ciency and convenience are key features of this service: an enterprise can obtaina credit limit (up to RMB 10 million) on the date of code scanning, and it only takes a few minutes to make anautomatic withdrawal through online banking of the Bank of Communications once the warehouse receipt pledgeprocedures are completed. This collaborative program won third place in the "Outstanding Program in Xiamen'sFourth Fintech Competition" hosted by Xiamen Branch of the People's Bank of China.By virtue of a complex product matrix, "Yu Lian Tong" is designed to conduct diversi?ed pledge ?nancing businesses,align corporate ?nancing demands with bank loan grant requirements, and devise ?exible and customized ?nancingschemes. This ensures ?nancing on demand, borrowings and repayments at will, and maximized ?nancing bene?ts.Yu Lian Tong's Product Matrix
Key Performance
"Yu Cang Rong" Helped Address the Tying Up of Inventory Funds in Dongguan's Paper Industry
"Yu Cai Rong" Helped Alleviate the Tying Up of Funds for Purchase Orders and Inventory in the DownstreamSteel Industry
Xiamen Xiangyu established a specialized intelligent paper warehousenamed "Xiangyu Superchain Dongguan Shuntong Warehouse" in DaojiaoTown, Dongguan. This warehouse offers comprehensive supportingservices, including import customs, intelligent warehousing, transportationand Yu Cang Rong, to customers within the paper processing anddistribution industry cluster in the Pearl River Delta. Distribution often spansa couple of months for customers in the paper industry, resulting in fundsbeing tied up in inventory. To e?ectively address this challenge and enableMSMEs to leverage inclusive finance policies, "Yu Lian Tong" collaborateswith multiple banks to provide "Yu Cang Rong" services, which allows forthe initiation of pledge financing against electronic warehouse receiptsafter the delivery of goods to the warehouse.
The steel business team of Tianjin Xiangyu Import and Export Trading Co., Ltd., in collaboration with XiangyuZhengfeng and "Yu Lian Tong", provides downstream processing enterprises with comprehensive servicessuch as collective steel procurement, intelligent warehousing and "Yu Cai Rong". Customers can place?nancing orders with relevant banks to solve the tying up of advance payments and inventory funds based onthe procurement contract with Xiamen Xiangyu. The entire process operates online 7*24, enabling customersto pay o? loans, release of mortgages and pick up of goods at any time. This o?ers a more convenient ande?cient ?nancing process for customers.
A customer and Xiamen XiangyuLogistics Personnel at a Warehouse
A customer and Xiamen Xiangyu's Business Operation and Logistics Personnel at a Warehouse
Yu Lian Tong
Yu Cang RongYu Cai RongYu Tu Rong
? Goods in stock? Pledge ?nancing
? Purchase orders? Financing
? Goods in transit? Pledge ?nancing
? Financing basedon transactionaldata
Yu Shu Rong
As of the end of 2023, "Yu Lian Tong" has partnered with10 banks and secured RMB
10.6 billion in special facilities. During the reporting period, the total nancing actually
obtained by customers from these banks exceeded RMB
2.7 billion.
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering SmartXiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talentfor Harmony
CultivatingPartnerships forJoint Achievement
5453
2023 Environmental, Social and Corporate Governance (ESG) Report
Based on the concepts of "intelligent processes, online services and visualized title to goods", the Company hasdeveloped the Xiangyu intelligent logistics service system (ISC) using big data, cloud computing, IoT and othercutting-edge technologies. The ISC system facilitates real-time collection, transmission and processing of logisticsinformation, and o?ers a comprehensive, transparent and e?cient logistics management system for customers.Customers can access real-time information on transportation status, inventory, customs clearance progress andother critical details about goods through the ISC system, providing solid data support for precise decision-making.In 2023, the ISC system achieved signi?cant progress in projects such as intelligent parks, intelligent driving systemsand large warehousing screens, greatly enhancing the intelligence and automation of logistics services.
The Company thoroughly implements national grain safety strategies, and harnesses digital technologies to injectnew momentum into traditional agriculture. We have developed an industry-level agricultural supply chain servicesystem that optimizes the grain circulation process through extensive integration of information technologies,significantly enhancing circulation efficiency. Meanwhile, our system provides an information service platformthat enables agricultural practitioners to have easy access to market information, policy guidance and technicaltraining, thereby improving product quality and e?ciency. Looking ahead, we will continue to explore and innovate,contributing further to the sustainable development of the agricultural industry.
Intelligent Logistics Service System
Agricultural Supply Chain Service System
Industry-level Agricultural Supply Chain Service System of Xiamen Xiangyu
Key Performance
During the reporting period, the Company further increased the penetration of itsindustry-level agricultural supplychain service system in three production areas (i.e.
Suihua, Yi'an and Fujin), and had over
6.8 million acres of lands newly certied; we
also launched Xingxing XiangnongApp and a WaaS system (grain warehouse alliancesystem), achieving the entire online process for grain return.
Front sectionMiddle sectionBack section
Grain warehouse allianceGrain circulation industry allianceGrain planting industry alliance
Front sectionMiddle sectionBack section
? The Company has formed
a grain planting industryalliance to o?er farmersan array of agriculturalmaterial procurement andsales services, agriculturaltechnology consulting servicesand agricultural productstorage services throughXingxing Xiangnong App. Thismove aims to address theindustry's common problemssuch as primitive channels,multiple trade links andinformation asymmetry, therebystrengthening our ability tocontrol ?rst-hand sources ofgrain and expand our variety.
? The Company has formeda grain warehouse alliance,consolidating variousthird party storage nodesin other regions. Thisapproach has signi?cantlyincreased the Company'sgrain procurement networkdensity, expanded coverageand further penetrateddeep into the industry,and has e?ectively solvedthe di?culties in sellingand storing grains byexpanding the servicesfrom Heilongjiang to Jilin,Liaoning and beyond.
? The Company has formeda grain circulation industryalliance, allowing us toconduct cross-regionaladjustments of diversi?edquality raw materials throughNorth-South transportationlogistics service system. Thissystem e?ectively meets theneeds of feed, breeding anddeep processing enterprisesacross di?erent regions,resolving all issues related toproduction and consumption"time and space mismatches"in the industry.
Agriculturalmaterial suppliersLogisticsprovidersFarmsCooperatives
Grain producersBrokers Grain logistics
Agricultural machinesuppliers
Financial institutionsFinancialinsurance
Futures andinsuranceGrain usersGovernments
Retail plantersXiangyu self-owned warehousesGrain warehouses
Third party warehousesData companies
Embracing Low-Carbon Style for a
Green Xiangyu
Empowering Smart
Xiangyu through
Digitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talentfor Harmony
CultivatingPartnerships forJoint Achievement
5655
2023 Environmental, Social and Corporate Governance (ESG) ReportInformation SecurityWith the continuous advancement of digital transformation, data assets have become one of the strategic resources vital to digitaleconomic development. Information security not only a?ects an enterprise's daily operations, but is also crucial to its sustainabledevelopment.Xiamen Xiangyu attaches great importance to information security, and collaborates with professional third-party companiesto build an information security and protection system in terms of security management improvement and security technologyapplication, ensuring business processes are safe, e?cient and conform to ESG standards. As for management structure, theCompany has established the Information Security Management Committee as the highest decision-making body, comprisedof its executives, to ensure information security strategies align with its overall strategy. In addition, we also have establishedan Information Security Task Force as an executive body responsible for daily information security management. At the sametime, we have appointed several subsidiaries as accountable bodies of information security to ensure e?ective implementationof information security measures at all levels. In terms of institutional guarantee, the Company has formulated a series ofinformation security rules and regulations designed to continuously improve our information security management system. Thisensures the con?dentiality, integrity and availability of information.
Xiamen Xiangyu Group has formulated theGeneral Rules for Information Security Management of Xiamen XiangyuGroupto define its information security management framework. Xiamen Xiangyu adheres to this managementframework, and assists the group to manage the headquarters and its subsidiaries.
General Rules for Information Security Management
Information Security System Xiamen Xiangyu
Xiamen Xiangyu develops a robust information security operation system to ensure the continuity of our business and thesecurity of our data assets. In terms of daily security operations, we implement a daily security patrol inspection system, regularlyidentify the risks posed to the systems open to the Internet, and periodically scan for vulnerabilities and identify attack surfacesto ensure system security. During important events and festivals, we further enhance our cybersecurity measures to successfullyaccomplish cybersecurity tasks during the "annual NPC and CPPCC sessions", the Asian Games and important holidays. Duringthe reporting period, no major cybersecurity event has occurred with respect to the Company.
Information Security Operations
Raising the Internal Information Security AwarenessDuring the reporting period, to foster internal employees'email security awareness, the Company conducted multiplephishing email tests on the sta?, and provided special securityawareness trainings for employees who failed the tests.Meanwhile, the Company also provided new employees withtrainings on information security knowledge and practices,continuously bolstering employees' defenses againstinformation security breaches.
Internal Training on Information Security Awareness
by Xiamen Xiangyu
Xiamen Xiangyu attaches great importance to customer privacy protection, considering it as a core aspect of our corporateresponsibility. In addition to the Management Measures for Information Security, the Application Security Management Normsand other rules and regulations, the Company has formulated the Information Security Contingency Plan to provide additionalsafeguards for customer privacy. Guided by these rules and regulations, we e?ectively maintain the con?dentiality of customers'private information through digital and technological means, such as decentralized management and storage encryption.
Xiamen Xiangyu manages information risks comprehensively to ensure the stability and continued development of our business.During the reporting period, the Company prepared an annual information risk report, conducting in-depth conclusion and analysisof various information risks faced over the year, including information system security risks, server regulation risks, software operationrisks, risks from unauthorized software sanctions and punishments, phishing email incidents and risks. Through measurablequantitative indicators, the Company can thoroughly analyze risk profile, and provide important reference for improving riskmanagement strategies and measures. The Company's information risk management strategies are designed to provide a decision-making basis for risk management, ensuring the Company's business operates normally in a safe and controllable environment.
Customer Privacy Protection
Annual Information Risk Report
Information security system
Generalmanagement rules
Generalmanagement
rules
? De?ning the group's overall policy, objectives, scope and
principles regarding information security management to governinformation security management work? Providing a comprehensive framework that lays the foundationfor other information security management measures, standardsand implementation rules
Management
measures
? Under the guidance of the general management rules,
formulating speci?c management measures for informationsecurity management within the prescribed scope? Covering such topics as risk managements, event management,cybersecurity, terminal security and data security
Management
measures
? Formulating speci?c implementation rules and technical
standards for network and information security with respect tovarious management measures as needed? Regularly updating and dynamically maintainingTechnicalstandardsTechnical standards
Detailed interpretation
Key PerformanceDuring the reporting period, the Company fended off external attacks for 4,614,000times, intercepted1,346,000 phishing emails, and prevented brute force attacks
for over200 million times.Through continuous
improvement of the defense system and active defense, the Companyhad no major
information security incidents during the reporting period.
Embracing Low-Carbon Style for a
Green Xiangyu
Empowering SmartXiangyu throughDigitalization
Improving Qualitythrough Steadyand InnovativeDevelopment
Fostering Talent
for Harmony
CultivatingPartnerships forJoint Achievement
5857
2023 Environmental, Social and Corporate Governance (ESG) Report
Seizing high-quality development opportunities, Xiamen Xiangyu builds a top-notch supply chain service teamthrough enhanced quality management. Guided by networking, internationalization, digitalization, and intelligence,we adhere to innovation-driven services, and continuously strengthen our service capabilities. By establishing anefficient resource allocation framework and network-based logistics services, we deepen our involvement in everylink of the industry chain, enhancing our service coverage and efficiency. Meanwhile, we focus on comprehensivecustomer lifecycle management, and integrate the ESG principles into corporate governance to continuouslyenhance the value of our services.
Improving Qualitythrough Steady andInnovative Development
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering SmartXiangyu throughDigitalization
Improving Qualitythrough Steadyand InnovativeDevelopment
Fostering Talentfor Harmony
CultivatingPartnerships forJoint Achievement
6059
2023 Environmental, Social and Corporate Governance (ESG) ReportQuality Management
Positioned as a leader in bulk commodity supply chain services, Xiamen Xiangyu is dedicated to providing manufacturers withintegrated supply chain solutions. Our core services cover the procurement and supply of bulk raw and auxiliary materials, thedistribution of ?nished products, logistics distribution, supply chain ?nance and information consulting. Our goal is to become aworld-class supply chain service provider, and to create the pattern of "supply chain service + production & manufacturing" foroperating the industry chain by developing service strengths across the industry chain and strategically engaging in productionand manufacturing. This pattern not only increases our comprehensive earnings, but also e?ectively mitigates the impact ofcyclical industry ?uctuations.In pursuing business excellence, Xiamen Xiangyu places signi?cant emphasis on the quality of our products and services. Weconduct comprehensive quality management tailored to the speci?c needs of various business sectors, and have establisheda quality management framework that encompasses conceptual and strategic design, system formulation, training andeducation, testing and examination, product traceability, product recall, complaint management, quali?cation certi?cation andotherwise. This framework ensures that our services and products consistently meet even exceed customer expectations, anddemonstrates our commitment to quality and our pursuit of continuous improvements.
Xiamen Xiangyu takes proactive measures to obtain qualifications and system certifications for our products andservices, tailored to satisfy the developmental needs and adapt to the actual situation of each business sector.During the reporting period, the quali?cations and certi?cations concerning product and service are as follows:
Xiamen Xiangyu recognizes the positive signi?cance of product traceability and recall capability in enhancing quality,protecting customers' rights and interests, mitigating risks and losses and improving supply chain transparency.During the reporting period, Xiangming Oils, a subsidiary of Xiamen Xiangyu, issued theProduct Traceability System
and theUnsafe Food Recall System. TheProduct Traceability System setsforth speci?c marking control provisionsfor every stage of soybean processing and production, e?ectively bolstering our ability to trace the whole processfrom source to finished products. TheUnsafe Good Recall Systemoutlines the process for recalling food foundunsafe after receipt by distributors or consumers, ensuring swift and safe responses to prevent further escalation.By implementing these systems, we not only improve our ability to control product safety and quality, but alsounderscore our commitment to prioritizing customers and shouldering social responsibilities.
Quali?cations and Certi?cations
Traceability and Recall
Primary Business Status of Xiamen Xiangyu
The Company mainly operates metalminerals, agricultural products, energyand chemicals, new energy and otherbulk commodities, covering sevenkey categories, i.e. ferrous metals,aluminum, stainless steel, new energy,coal, oils and cereals & grains.
Commodity portfolio
The Company focuses on satisfyingcustomer needs in the manufacturing?eld, and consistently optimizescustomer structure. During thereporting period, the number ofmanufacturing customers served bythe Company remains steady at 60%and above, including over 80% innew energy supply chain, over 70% inferrous metal and aluminum supplychain, over 60% in coal and cereals &grain supply chain, and over 50% instainless steel supply chain.
Customer structure
The Company has established 10platforms in China. The Company hasalso expanded its core operationsfrom coastal cities to inland cities, andengaged in meeting the supply chainneeds of modernized industry clustersin central and western regions. In recentyears, as part of our strategic blueprint,we have actively expanded into theinternational market in countries andregions along the "Belt and Road"initiative. We have established overseasbusiness entities in Singapore, Vietnam,Indonesia and beyond, collaboratingwith customers across over 100countries. Our focus is on connectingwith overseas quality purchase and salechannels, and addressing the overseassupply chain needs of large-scaledomestically-funded enterprises.
Regional landscape
Business SectorCompany NameCerti?cation
Bulk commodity trading
Xiamen Great Corporation
ISO9001 Quality Management System Certi?cationAEO Advanced Certi?cationFujian Xingda
AEO Advanced Certi?cationISO9001 Quality Management System Certi?cationPIL Total Logistics AEO Advanced Certi?cationXiangyu CommoditiesAEO Advanced Certi?cationXiangyu New EnergyAEO Advanced Certi?cationXiangyu ResourcesISO9001 Quality Management System Certi?cation
Production &manufacturing
Xiangyu Oils
ISO9001 Quality Management System Certi?cationHACCP Food Safety Management SystemXiangyu SOEISO9001 Quality Management System Certi?cationZhuoyu Supply ChainISO9001 Quality Management System Certi?cation
Embracing Low-Carbon Style for aGreen Xiangyu
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Xiangyu throughDigitalization
Improving Qualitythrough Steadyand InnovativeDevelopment
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CultivatingPartnerships forJoint Achievement
6261
2023 Environmental, Social and Corporate Governance (ESG) Report
Through officially certified quality system internal audits and trainings, Xiamen Xiangyu actively foster a vibrantquality culture within the Company. We encourage every employee to prioritize quality in their work, and improvequality awareness and management capabilities of individuals and teams through relentless learning and practice.
Xiamen Xiangyu has established a robust customer complaint management system based on the actual situationof our business sectors, to ensure our timely collection, analysis and response to customer feedback, therebyoptimizing business processes and enhancing customer experience. Meanwhile, we regularly conduct customersatisfaction surveys and actively gather customer opinions and suggestions through questionnaires, interviews,online surveys and otherwise. This helps us understand customer needs and expectations and reasonably evaluateservice quality as a key foundation for improving our services and products.
Training and Education
Customer Feedback
Xiangming Oils' ISO9001 System Internal AuditIn 2023, Xiangming Oils arranged for relevant employees to conduct over 10 product quality and safetytraining sessions based on front-line needs, which had 494 participants and covered such topics as foodsafety, feed safety and GMO safety, enhancing employees' product safety awareness and capabilities frommultiple dimensions.
ISO9001 System Internal Audit Meeting Held by Xiangming Oils
In 2023, Xiangming Oils, one of Xiamen Xiangyu's subsidiaries, issued theCustomer Complaint Management Rules
that provide for the division of duties, work?ow and claim indemni?cation regarding product and service complaints,ensuring rapid and e?ective response to customer feedback.
Customer Complaint Management
The Company has established a comprehensive network-based logistics service system, encompassing the following: (i) a railtransport network running from west to east and connecting south and north; (ii) a nationwide road transport network; (iii) awater transport network based at major domestic ports; (iv) warehousing clusters in the eastern coastal, central and western bulkcommodity distribution areas; and (v) international logistics channels such as international charter shipping and international railservices linking overseas markets.By leveraging multi-modal transport strengths, the Company provides customers with high-quality, end-to-end and customizedbulk commodity logistics solutions. We have successfully developed multiple classic routes, including "cross-provincialcirculation of aluminum products", "grain transportation from north to south", "coal transportation from west to east" and "coaltransportation from north to south", providing customers with a seamless, e?cient and reliable logistics experience.
Network-based Logistics Service System
Customer Satisfaction Survey
Logistics CapabilityAs China's 5A logistics enterprise, Xiamen Xiangyu places logistics capability at the core of our development strategies. On onehand, we lead the way in establishing and continuously improving a network-based logistics service system focused on "road,rail, water and warehouse", connecting domestic and overseas markets. On the other hand, focusing on tremendous e?orts toboost the digital and intelligent transformation of logistics services, we actively integrate big data, cloud computing, IoT, AI andother cutting-edge technologies deep into every aspect of the logistics business through a robust logistics network. By virtue ofthese innovative practices, the Company consistently improves the e?ciency and quality of our logistics services. The Company isdedicated to becoming an innovative pioneer in the logistics industry, o?ering customers more outstanding and e?cient logisticssolutions, and creating a new ecosystem for the sustainable development of the industry.
In 2023, Xiangming Oils actively conducted a customer satisfaction survey for in-depth understanding of customers'needs and feedback. To gather customers' opinions and suggestions, we collected118 valid questionnaires.
According to the survey results, customers highly rated Xiangming Oils' products and
services.Among these questionnaires,
questionnaires indicated "very satis?ed", accounting for
%;
questionnaires indicated "satis?ed", accounting for approx.
%; no questionnaire indicated"less satis?ed"
or "unsatis?ed". In the future, we will continue to listen to the voices of customers,continuously optimize
our products and services, and consider customer feedback as a key driverfor our ongoing
improvement and development.
Key PerformanceDuring the reporting period, Xiangming Oils received 0.347 valid complaints per10,000 tonnes of soybeans processed, which is lowerthan the Company's goal of 0.5valid complaints per 10,000 tonnes. The Companymeticulously recorded and properlyaddressed all valid complaints, and implementedinternal improvements accordingly.
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6463
2023 Environmental, Social and Corporate Governance (ESG) Report Logistics resources and capabilities of the Company
Railway freight stationsGrain basesWarehousesYardsGrain transportationfrom north to southCoal transportationfrom north to southCross-provincialtransportation ofaluminum oxide
Internationallogistics
The United States,New Zealand,Indonesia,Thailand andVietnam,etc.
China-Europe and China-Asiarailway lines
Network-based Logistics Service System of Xiamen Xiangyu
CategoryResources and Capabilities
Rail transport
The Company operates 11 rail freight stations (9 self-owned, 1 managed and 1 rented), coveringbulk commodity distribution hubs in central and western regions, and equipped with 47specialized railway lines, approx. 2.50 million square meters of container yards and warehousesand around 30,000 self-provided containers. With annual freight capability exceeding 45 milliontonnes, the Company ranks among the top in the industry. It has developed high-qualitytransportation routes for coal and aluminum products, including "Shandong and Henan –Xinjiang" and "Shaanxi – Yunnan, Guizhou and Sichuan" transportation routes.
Road transport
Water transport
Warehousing clusters
International logistics
The Company operates approx. 1,000 self-owned transport vehicles, and approx. 0.1 millioncommercial vehicles
The Company operates 3 self-owned consolidation and distribution vessels, andcontinuously integrates commercial vessels into water transport, forming a combined watertransport capacity of "self-owned + cooperative" vessels. During the reporting period, thetransport volume of domestic coastal and Yangtze River basin exceeded 27 million tonnes.
The Company operates: (i) 7 grain purchase platforms with a self-owned warehousecapacity of approx. 13 million tonnes, which are equipped with 9 specialized railway lines;(ii) 52 self-owned and chartered warehouses, covering over 1.6 million square meters;(iii) 8 yards with a total area of over 0.5 million square meters; and (iv) 17 futures closingwarehouses with a total capacity of approx. 1 million tonnes.
By leveraging international charter shipping capability for bulk dry goods and internationalrail logistics service capability, the Company has built a China-Indonesia logistics channel(with a freight capacity of 17 million tonnes during the reporting period), a "China-Vietnam& Thailand" logistics channel, and a "two-way China-Europe" transport channel. Thesechannels help the Company forge our international multi-modal transport capability andimprove localized logistics services overseas.
This map is indicative in nature and is intended only for an overview of a speci?c area
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6665
2023 Environmental, Social and Corporate Governance (ESG) Report
Internationalization Initiatives
Aligned with China's "Belt and Road" initiative, Xiamen Xiangyu puts countries and regions along the initiative at the coreof our strategic landscape, and actively expands into international markets. The Company collaborates with customersacross more than 100 countries, addresses the supply chain needs of large-scale domestically-funded enterprises abroadby connecting with excellent overseas purchase and sale channels, and provides those enterprises with professionaland efficient supply chain services. To boost our internationalization strategy, the Company has established theInternationalization Development Department, tasked with the expansion of overseas business, the development ofoverseas platforms and the management of internationalization strategies. In 2023, the Company made steady stridesin boosting our internationalization strategy, refining international management system and building an internationalplatform. The Company is taking gradual steps to build a global supply chain service system to continuously improve ourinternational competitiveness, steadily moving towards our goal of "becoming a world-class supply chain service provider".
Internationalization Development
Operation of China-Europe RailwayLines Operated by Xiamen Xiangyu
Through collaborative e?orts across various fronts, Elink team facilitates the export of consumergoods from Xi'an, Guangzhou, Nanchang, Chengdu and other cities to more than 10 countries,,opening up the export transportation channel for domestic enterprisesOutward direction
Elink team transports crucial bulk goods and materials (e.g. timber, agricultural products andminerals) from various countries back into China. This strongly supports nationwide supply chainprovision, and contributes to domestic and international dual-cycle development.
Inward direction
Making steadystrides to boost ourinternationalization
strategy
? Establishing a "1+3+N" system for safeguarding internationalization-related functions;? Re?ning the mechanism to track business goals;? Enhancing internal empowerment and external interaction.
? Establishing an "Internationalization System OptimizationTask Force" to formulate theRequirements for Overseas TravelAchievements Feedback, theGuidelines on Approval Processof Overseas Platform Companiesand theWork Guidelines forForeigners Working in Chinaand other systems
? Developing an international talent pool scheme and building
a talent management system by "assigning domestic talentsfor overseas training +recruiting local talents", aiming tostrengthen our talent pool
Refining our internationalization management systemTaking gradual steps to build an international platform
Internationalization Progress of Xiamen Xiangyu
Overseas platform companies
? The Company has established
overseas business entities inSingapore, Vietnam, and Indonesiaetc. These companies serve as"service stations" for overseasbusiness, leveraging inter-regionalsynergistic e?ects.
Project companies
? The Company has established multipleprojects in Indonesia, New Zealand andSingapore, including various businessunits, logistics service providersand barge transport companiesestablished and operated in Indonesia;the Company has acquired forest rightreserve and wharf resources in NewZealand, by leveraging our supplychain investment and operationalcapabilities; our new energy projectcompanies in Singapore help facilitatethe expansion of photovoltaic productsinto other overseas markets.
Overseas teams
? The Company continues to attractinternational talents and buildsan outstanding overseas supplychain service team. As of 2023, theCompany has 58 employees acrossoverseas platforms, including 17 inSingapore, 10 in Hong Kong, 4 in theUnited States, 6 in Indonesia and 21in Vietnam.
Seizing the Development Opportunities of China-Europe Railway Line, And Implementing the "Belt andRoad" Initiative to Drive Economic DevelopmentAs a crucial logistics artery connecting China, Europe and countries along the "Belt and Road" initiative, theChina-Europe railway line plays a pivotal role in boosting economic and trade cooperation. In 2023, XiamenXiangyu Elink Multitrans Co., Ltd., a subsidiary of Xiangyu Superchain, successfully managed around 460China-Europe train dispatches, providing strong support for the economic development along the "Belt andRoad" initiative. Xiangyu Elink Multitrans Co., Ltd. provides logistics services throughout the entire process,including vehicle receipt and inspection, container loading supervision, ship booking and customs declarationand clearance, ensuring e?cient connection with the logistics chain. These services not only facilitate smoothautomobile export, but also enable China's automotive enterprises to enhance export capacity and deliverproducts to the global market in a more e?cient manner.
Supplier ManagementXiamen Xiangyu emphasizes supplier management, in particular lifecycle management practices. The Company isdedicated to establishing a long-term and bene?cial partnership with suppliers, and incorporates ESG factors intodue diligence to promote sustainable development practices on the industry chain, striving for continuous creationof social value and maximization of enterprise value.
To strengthen supplier credit risk management and control, the Company has established a "joint-stock company-subsidiary" dual-tiered management and control structure to ensure e?ective supplier lifecycle management.
Lifecycle Management
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6867
2023 Environmental, Social and Corporate Governance (ESG) Report
Environment? Production and manufacturing suppliers, in particularthose in the high-carbon industries, are clearly requiredto pay attention to their environmental complianceissues, including but not limited to whether theirequipment conforms to environmental protectionrequirements, the advancement of productiontechnologies, pollutant emission and waste utilizationdesign, and recti?cation of historical environmentalpenalties. Relevant information is disclosed as akey factor in business statements. After a supplier ispermitted to conduct business upon inspection, we willpay continuous attention to its environmental protectione?orts, list negative public opinions as risks of highconcern internally through public opinion monitoringprocedures, and adjust the business cooperation planwith the supplier as needed if there is certain impactupon assessment by the functional risk control o?cer.
Society? We focus on the personal rights and interests and laborprotection of an upstream supplier's employees. Onone hand, we track labor disputes and other causes ofaction and the existence production and safety-relatedpenalties via public channels. On the other hand,through inspections and exchanges, we observe whetherthe working environment meets safety requirements,assess the awareness of safe production, and understandthe working conditions and internal management of thesupplier's employees. Based on such information, weevaluate the stability of the supplier's human resources.? We focus on the quality of suppliers' products and theirresponsibility to suppliers, having insight into theirindustry reputation from various aspects. We attachgreat importance to various issues such as maliciousfraud, infringement of privacy and unfair competition.If a supplier is found to lack social responsibility uponinvestigation and veri?cation, it will be included on thelist of prohibited suppliers.
Xiamen Xiangyu's Dual-tier Management and Control Structure for Supplier Management
Supplier Lifecycle Management of Xiamen Xiangyu
In terms of supplier management strategies, Xiamen Xiangyu implements classi?ed and hierarchical managementof strategic suppliers. The Company encourages leaders at all levels to jointly participate in the maintenance of ourrelationship with strategic suppliers and enhance the ?exibility and e?ectiveness of resource consolidation to meettheir speci?c needs.
Main Content of ESG Due Diligence Conducted by Xiamen Xiangyu
To promote the sustainable development of the economic society, Xiamen Xiangyu actively integrates ESG conceptsinto every aspect of the industry chain. In conducting due diligence and making decisions regarding supplieraccess and assessment, the Company prefers to collaborate with outstanding enterprises on key ESG topics such asenvironmental investment, production environment safety and protection of employees' rights and interests. Thisensures that every aspect of the supply chain meets sustainable development requirements.
ESG Due Diligence
Parent Company
Decision-making body: The Risk Management
Committee of Xiamen Xiangyu establishes theProfessional Supply Chain Operation Committee andits designee as decision-making body.
Responsible department: The Supplier Credit
Management Department is responsible for overseeingthe Supplier management work of all businessdepartments, and directing and collaborating with theBusiness Department to control Supplier risks.
Responsible department: The Supplier Credit
Management Department is responsible for overseeingthe supplier management work, and directing with thesubsidiaries to control supplier risks.
Primary unit: As the primary unit dealing with
suppliers, the Business Department is responsible forthoroughly assessing supplier credit in accordancewith the management requirements of the Company.
Subsidiary
? Thoroughly assessing supplier s' credit and cooperation value based on suppliers'
overall profile, including equity background, primary business activities, industryreputation and ?nancial data.Pre-eventmanagement
? Fully gathering and analyzing supplier s' public opinion information, focusing on monitoring
changes in supplier credit, and making dynamic adjustments to business plans
During-eventmanagement
? Jointly boosting the establishment of a supplier appraisal and marking system to
conduct classi?ed and hierarchical management of suppliersPost-eventmanagement
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7069
2023 Environmental, Social and Corporate Governance (ESG) Report
Xiamen Xiangyu ?rmly believes that talent is the cornerstone of enterprise development and the driving force behind our growth. Toalign with our strategies of internationalization, digitization, and platform development,, we continuously re?ne our human resourcemanagement system. We have established a comprehensive mechanism for talent recruitment, development, deployment, andmanagement,, along with a robust employee relations framework, ensuring our HR practices are fully aligned with our corporatestrategies. Furthermore, we endeavor to cultivate a high-quality and sustainable talent pipeline to provide a solid foundation forthe Company's enduring growth. We also place a strong emphasis on social responsibility, actively supporting the national ruralrevitalization strategy. By engaging in initiatives like income-increasing projects and providing support to vulnerable groups, weproactively ful?ll our corporate social responsibilities and contribute to the collective progress of society.
FosteringTalent forHarmony
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering Smart
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Fostering Talentfor Harmony
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7271
2023 Environmental, Social and Corporate Governance (ESG) Report
Equal EmploymentXiamen Xiangyu respects the professional background of every employee and has instituted a suite of HRmanagement rules, including the Position Management Rules and the Recruitment Management Rules, to ensureequitable treatment for all during the hiring process, irrespective of nationality, ethnicity, gender, religious belief,or cultural background. Recognizing diversity as a pivotal catalyst for innovation and corporate growth, we arecommitted to developing a diverse talent ecosystem. In our overseas operations, we proactively attract and hirelocal talents through a localized recruitment approach. Currently, our foreign workforce represents 1.2% of our totalemployee base. We take tangible steps to demonstrate our respect for employee diversity and openness to globaltalents, thereby laying a solid groundwork for our international expansion and cultural integration.Employee Composition of Xiamen Xiangyu
Employees by Major in 2023
Our Employment Philosophy
ProductionSalesTechnologyFinanceAdministrationServiceOthers
2%30%
9%
9%
4%
18%
28%
Competency-
oriented
Not solely based
on seniority
Performance-
based
Not solely basedon status
Flexiblein hiring/promotions
Not solely basedon educationalbackground
35.76%
64.24%
MaleFemaleDoctorMasterBachelorJunior College
and Below
9.29%
44.65%
46.01%
0.05%
Employees Working inChinese Mainland
Employees Working inHong Kong, Macao andTaiwanEmployees Working in OtherCountries and Regions
0.12%
98.80%
1.08%
51 and Above41 to 5031 to 4030 and Below
35.11%
7.87%
39.51%
17.51%
Employees by Gender in 2023
Employees by Age in 2023
Employees by Education Degree in 2023
Employees by Geographic Distribution in 2023
Key Performance
The Company had a total of 8,565 employees, of which 35.76% were femalewith an upward trend year-on-year;
The Company employed 7 individuals with disabilities, o?ering them positionsin accounting and warehouse management, etc., which not only addressed the
employment challenges faced by the disabled but also enhanced their quality of lifeand empowered them to realize their full potential;Additionally, the Company employed 74 veterans, actively assuming its socialresponsibility to support veterans for their employment.
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7473
2023 Environmental, Social and Corporate Governance (ESG) Report
Xiamen Xiangyu is committed to crafting an inclusive, diverse, and equitable recruitment system. In pursuit of this vision,we have developed a robust recruitment capability model, clear quali?cation benchmarks, and a fair career progressionframework.Internally, we offer specialized training and certification programs for our interviewers, tailored to thespeci?c position needs of each department and the criteria for talent selection and deployment, so as to enhance theirprofessionalism in recruitment. Externally, we use comprehensive methods such as professional assessment tools andprofessional personality tests to fully assess the suitability of candidates.Diversi?ed Recruitment Channels at Xiamen Xiangyu
Performance Appraisal System of Xiamen Xiangyu
Remuneration and Bene?tsXiamen Xiangyu is actively engaged in building an objective, fair, and scienti?cally sound value assessment system. We upholdthe fundamental principle of value creation, empowering our employees to unleash their full potential and creativity, which notonly facilitates personal growth but also propels the comprehensive advancement of our enterprise. Along with formulating theRemuneration Management Rulesand thePerformance Appraisal Management Rules, we continue our e?orts on re?ning ourremuneration and bene?ts structure, and setting standardized remuneration and bene?ts standards, to ensure the growth anddevelopment channels for value creators. Besides, we have built an equitable and rational remuneration and incentive systemthat allows our employees to showcase their talents and achieve their career aspirations.
The employeeremuneration is primarilybased on an assessment oftheir job capabilities andperformance appraisal,consisting of base salary,position-speci?c salary,seniority salary, andbonus, etc.
Remuneration
Structure
Appraisal Methods
PerformanceManagement
Application ofAppraisal Results
Di?erent appraisals areorganized on a monthly,quarterly, semi-annual andannual basis for employeesin di?erent positions usingBSC, KPI, PBC, 360-degreeassessment and othermethods according tothe annual managementrequirements.
Quarterly, semi-annualor annual performanceinterviews areconducted for e?ectivecommunication andcoaching.
Employee appraisal resultsare linked to trainingneeds, performancebonuses, promotion,salary adjustment,award evaluation,and organizational/departmentalperformance, etc.
Employee Bene?ts System of Xiamen Xiangyu
Employee Incentive Mechanism of Xiamen Xiangyu
We are dedicated to o?ering an extensive range of bene?ts programs designed to enhance the quality of life for oursta?. In 2023, we have placed a special emphasis on safeguarding the welfare of our overseas employees, ensuringthat they can focus wholeheartedly on their duties, regardless of their geographical location.
Key Performance
To empower employees to partake in the prosperity of our enterprise and ensuremutual growth of both individuals and the organization, the Company launched equity
incentive plans in 2020 and 2022 respectively, with the aggregate amount of shares
allocated for incentives accounting for nearly8% of its total share capital, bene?tingover1,000 key management personnel and frontline business team members.It is the ?rst state-owned enterprise in Fujian Province to initiate the "stock option+
restricted stock" hybrid equity incentive plan, marking a signi?cant stride in buildinga long-term incentive mechanism.
Encouraging employees to actively participate in national, provincial and industrial post-skills certi?cation.Reimbursementof Training andCerti?cation CostsEncouraging employees to make use of the Company's internal and external trainingresources to improve their business management knowledge.
Employee Learningand Growth AwardBeing allocated for annual awards recognizing outstanding teams and individuals, year-end bonuses for functional personnel, and awards for exceptional contributors, aimed atencouraging proactive engagement and rewarding high-performing employees fairlyGeneral Manager
BonusIntegrating the Company's interests with those of its shareholders and employees to inspirethe management team's passion for entrepreneurship.
Equity Incentive
External Sourcing
Internal TrainingDiversi?edRecruitmentChannels atXiamen Xiangyu
On-campus Recruitment
Internal Competition
Internal ReferralCadre RotationSocial Recruitment
Regular Bene?tsFeatured Bene?ts
? Basic Social Insurances? Housing Provident Funds? Enterprise Annuity? Commercial Insurances? Paid Leave? Special Subsidies? Statutory HolidayBene?ts, etc.
? Employee Cafeteria? Sta? Gym? Employee Health Checkups? Birthday Bene?ts? Overseas Employee Insurances? Union Condolences? "Spring Rain" Fund? Employee Assistance Program, etc.
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7675
2023 Environmental, Social and Corporate Governance (ESG) Report
Key PerformanceIn 2023, the Company allocated approximately RMB 457,900 to cultural andsports activities, and aboutRMB 537,400 to employee condolences.
Cultural and Sports Activities for EmployeesIn 2023, the Company embraced a culture of care, orchestrating a vibrant array of cultural and sportingactivities to nurture a positive and vibrant environment. Seizing the opportunity of significant holidayssuch as the Lantern Festival, International Women's Day, Children's Day, and the Mid-Autumn Festival, theCompany curated a series of "Cultivating Well-being with Xiangyu" events, which elevated employees' senseof ful?llment and joy, while also strengthening the unity and cohesion within the organization. Furthermore,the Company actively encouraged the formation of various staff interest groups, including Tai Chi, soccer,basketball, badminton, and foreign language, fostering a "Happy Work, Healthy Life" ethos within the XiamenXiangyu family.
Festive Cultural and Sports Activities of Xiamen Xiangyu
Solving the Problem of Childcare for EmployeesSince 2022, our trade union has been organizing annual summerchildcare programs for our employees, catering to nearly 80children in total. These initiatives have been instrumental inenabling parents to balance their professional commitmentswith the joy of parenting. All expenses other than meal costswere covered by our trade union, thereby significantly easingthe ?nancial burden on the families of our employees. Beyondproviding essential care, our summer childcare programs wereenriched with a variety of activities and educational courses,including creative workshops, safety education sessions, andsolar term-based food education, so as to offer high-qualitycompanionship for children during their holidays.
Summer Childcare Program for Employees of
Xiamen Xiangyu
Training and Promotion
Xiamen Xiangyu has crafted a sound employee training and talent development system that is anchored in both theenhancement of organizational capabilities and the holistic growth of its employees. While establishing a suite ofmanagement regulations, including theEmployee Training Management Regulations, theInternal Trainer ManagementRegulations, and theEmployee Rotation Management Regulations, we offer our employees a wider array of careerdevelopment opportunities and help them to make continuous progress and growth on their career path.Distinctive Employee Growth Management System of Xiamen Xiangyu"Three Vertical and Three Horizontal" Talent Training
System
Strengthening Key Position Talent Echelon
Construction
Focusing on Management Trainee Development
Encouraging Talent Rotation
It encompasses training for senior, middle, andgrassroots employees, o?ering a variety of thematictraining programs tailored to the distinct needsof employees during their new term, tenure, andtransition phases, to meet the demands of sustainabledevelopment across all levels in our talent pool.
By integrating talent inventories, implementation ofindividual development plans, and mentorship guidance,we enhance the adequacy of our talent echelons andoptimize the age structure of our leadership teams.
We formulate a management trainee training programwith a three-year training cycle. Utilizing a meritocraticsystem and comprehensive training, we have developeda young and dynamic middle management echeloncharacterized by high drive, competitive spirit, alignmentwith company culture, and versatile capabilities.
Through strategic and targeted job rotationarrangements, we develop versatile talents.
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7877
2023 Environmental, Social and Corporate Governance (ESG) Report
In terms of talent training, Xiamen Xiangyu continuously refines its multi-tiered personnel development andtraining system to inspire the intrinsic motivation of its talent pool. In 2023, the Company's training initiativeswere closely aligned with the corporate development strategy, annual management goals, and organizationalcapacity enhancement. Leveraging the "three horizontal and three vertical" talent training system, the Companydedicated itself to international training, business echelon development, succession planning, and specialized skillenhancement throughout the year. Additionally, the Company placed a strong emphasis on advancing the digitalinfrastructure of its learning platform, launching a new online learning system that o?ered a a wealth of customizedtraining courses to meet the individual growth needs and career aspirations of its employees.
Regarding the training of senior management, Xiamen Xiangyu has established a comprehensive development programthat spans the entire career lifecycle of executives. Tailored empowerment projects are crafted to address the uniquegrowth phases of each executive, which employ a diverse array of teaching methodologies, including in-person training,coaching, and benchmarking visits, integrating skill development with the resolution of real-world challenges to ensurethe practical applicability and e?ectiveness of the training.For the cultivation of high-potential middle-level cadres, the Company has specially set up a "Middle-Level Young CadresTraining Class", known as the Youth Cadre Class, to enhance management acumen and overall quality, utilizing a varietyof training methods such as case studies, interactive workshops, thematic salons, internal mobile classrooms, and visitsto external enterprises, with its curriculum including modules on "Integrity Education", "Xiamen Xiangyu Culture andStrategic Planning", "Leadership and Organizational Development", "Risk Control and Crisis Management", and "BusinessPerspective and Comprehensive Skills". Through these e?orts, we aim to nurture a high-caliber and versatile managementteam to provide robust talent support for the Company's sustainable growth and innovation.
Employee Training
Advancing Management Empowerment and Cultivating Leadership TalentIn 2023, the Company actively empowered new management cadres by enhancing their capabilities to excel intheir roles. The newly appointed middle-level cadres engaged in a multi-stage Management Training Program (MTP),yielding a rich harvest of 270 learning, thinking, and summary experience articles.In addition, the Company assembled a team of 15 distinguished middle and senior management personnelto serve as internal trainers to nurture and empower grassroots talents, thereby laying a robust foundation forthe construction of its management talent echelons. Meanwhile, the Company also selected key managementpersonnel to participate in advanced enterprise management courses and leadership development programsspeci?cally designed to re?ne the competencies of the senior and middle management cadres, enhancing theiroverall management pro?ciency.
New Middle-Level Management Training Program (MTP) Venues of Xiamen Xiangyu
Senior ManagementVisionary Leadership:
Ambition/corporateculture/strategicthinking/overallplanning/reformand innovation/organization building/leadership
Middle ManagementGuiding Path:
Initiative/globalvision/team building/communication andcollaboration/riskmanagement
GrassrootsSkills Excellence:
Cultural integration/execution/professional quality/position-holdingability
Training for NewSenior Managementof the GroupLingxiang Program(New SeniorManagementTraining)
Business Management Training Class (Group)Executive Rotation Class (Group)
"Three Horizontal and Three Vertical" Talent Training System of Xiamen Xiangyu
Business & Functional Executive Competency
Training
SeniorManagementTraining Class(Group)
DigitalTrainingClass
BusinessManager
ClassFinancialManagerClassOperationManagerClassLogisticsManagerClassRisk ControlClassStrategicInvestmentClassBoardSecretaryTrainingClassHumanResourcesClassAdministrativeManagementClass
SafetyManagementClassEquipment andEngineeringManagementClassQixiang Program(New MiddleManagementTraining)
Young CadresTraining Class(Group)
Feixiang Program(Executive Training)Middle-Level Cadre Development Class (Group)
Chenxiang Program(New Campus-recruitedEmployees & ManagementTrainees Training)
Chixiang Program(Grassroots CorePersonnel Training)Job Quali?cation Series Training + Job ExaminationsOn-boarding Trainingfor New Social-recruited Employees
Transition PhaseTenureNew Term
Key PerformanceIn 2023, the Company had a total of 4,385 employees receiving training, with a total trainingtime of94,398 hours, and an average training time of 22 hours per person.
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8079
2023 Environmental, Social and Corporate Governance (ESG) Report
Intensifying Focus on Key Talents and Strengthening Management Trainees' Comprehensive Capabilities
In 2023, the Company orchestrated 9 monthly empowerment sessions for 2022 management trainees andinaugurated a 14-day "Xiangxinli" empowerment training camp for the 2023 cohort. Through a diversecurriculum comprising 21 courses and 10 thematic activities, the "New Xiangxinli" training camp employed avariety of training methods, including team development exercises, structured practical training, ?eld visitsand studies, ?lm screenings, thematic workshops, competitions, and course lectures, immersing managementtrainees in Xiamen Xiangyu's culture, deepening their understanding of the supply chain business model andcompany systems, and continuously elevating their strategic thinking, operational proficiency, and overallprofessional excellence.
"Xiangxinli" Management Trainee Empowerment Training Camp of Xiamen Xiangyu
Xiamen Xiangyu is dedicated to the continuous enhancement of its talent management system, opening up dualchannels for professional and managerial advancement, by clarifying and de?ning the criteria for talent selection,evaluation, and appointment, to broaden the development path of employees. In 2023, according to the latestGuidance on the Management of the Organization and Position Rank System, we further optimized our employees'career trajectories, o?ering a more expansive platform to showcase their abilities, and thus sustaining the vibrancyand dynamism of our talent pool.
Employee Promotion
Employee Rights
Xiamen Xiangyu places strong emphasis on the democratic governance of our workforce. Through establishing andrefining relevant systems such as theEmployee Congress Rulesand theMeasures for the Implementation of OpenBusiness A?airs, we keep bolstering our employees' sense of participation and belonging, and fostering an environment ofopenness and democratic management. Meanwhile, we also ensure that our employees' perspectives are not only heardbut also given due consideration through the establishment of various ?exible and diverse communication channels forbusiness transparency and feedback. Furthermore, we regularly conduct various employee surveys, actively seeking outtheir opinions and suggestions, provides personalized career development and growth opportunities, helps employeesbetter achieve personal goals and career aspirations, and enhances employee satisfaction.Employee Communication Channels of Xiamen Xiangyu
Trade Union Members Congress of Xiamen Xiangyu
? Annual business meeting? Symposium of leaders at
di?erent levels
? Monthly meeting? Performance feedback
interview
? Daily talks? Team building activities, etc.
Face-to-faceCommunication
WrittenCommunication
OnlineCommunication
? Daily and weekly reports? Special reports related to
daily operations, etc.
? Company OA, "YuMessage", etc.
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering Smart
Xiangyu throughDigitalization
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CultivatingPartnerships forJoint Achievement
8281
2023 Environmental, Social and Corporate Governance (ESG) Report
Occupational Health and SafetyFocusing on the implementation of a safety management system and the continual enhancement of safety managementand security capabilities, Xiamen Xiangyu adheres to a holistic approach encapsulated by the "management,training, equipment, and team" framework, ensuring that work safety responsibilities are effectively discharged at allorganizational levels. Guided by the principle of "not falling below the previous year's work safety target indicators,re?ecting ongoing improvement", we have set forth the occupational health, safety, and environmental protection goalsfor 2023, to guarantee the continuous advancement of our safety performance.Occupational Health, Safety, and Environmental Protection Goals for 2023 of Xiamen Xiangyu
Xiamen Xiangyu attaches great importance to the well-being of its employees, considering their health and happiness asa vital foundation for corporate growth. In addition to standard healthcare provisions, the Company extends genuine careand a?ection, o?ering holistic physical and mental health support, by arranging complimentary annual health screenings,providing comprehensive insurance coverage, and implementing the Employee Assistance Program (EAP), among others.Besides, our commitment to enhancing our facilities is ongoing, driven by a deep understanding of our employees' needs,involving creating well-equipped sta? canteens, cozy living quarters, and vibrant activity centers. Additionally, we haveupgraded our break room, installed state-of-the-art water ?ltration systems, introduced a versatile co?ee machine, andthoughtfully curated spaces such as a sta? library and a mother-and-baby room. These e?orts are aimed at re?ning theo?ce environment, ensuring that every sta? member experiences the Company's attentive care, and fostering a symbioticgrowth between employees and the enterprise for sustainable development.Employee Assistance Program (EAP)
Since its inception in 2020, Xiamen Xiangyu's EAP has been staffed by a team of professional psychologicalcounselors, offering a spectrum of psychological support services tailored to various employee needs, whichinclude a round-the-clock helpline, group sessions, individual consultations, and mental health seminars,integrating the dissemination of mental health knowledge with personalized counseling. Our goal is to alleviatestress and provide ongoing attention to the mental well-being of our workforce. Over the relevant reporting period,we have conducted a series of 12 educational seminars and facilitated 6 individual counseling sessions.
Onsite Mental Health Seminar at Xiamen XiangyuEmployee Assistance Program of Xiamen Xiangyu
We have introduced authoritative industryconsulting agencies to provide expertsupport in various domains includingcareer development, parent-childrelationships, marriage, love, and familyaffairs;The consultant team is composed ofpsychology professors from XiamenUniversity, Jimei University and otheruniversities, chief physicians from top-tier(3A) hospitals and full-time consultants,each with over five years of workingexperience to ensure the delivery of high-quality consulting services.
Teacher AllocationWays to Consult
We select a panel of o?ine consultantsto provide regular on-site serviceswithin our organization;Additionally, we o?er onlinetelephone and video consultations toaccommodate the needs of remoteand international employees.
Service AssuranceWe prioritize privacy and haveequipped a dedicated consultingroom for secure and con?dentialinteractions;Furthermore, we have launched anexclusive "Psychological ConsultationReservation Platform" that operates onboth PC and E-Link mobile terminals,allowing employees to scheduleappointments at their convenience.
No fatality accident;No ?re accident;No environmental pollution accident;No network security accident;No single accident resulted in a direct economic loss exceeding RMB 1 million;Ensuring the e?ective operation of the safety and environmental protection management system;100% pass rate for our special equipment testing;100% completion rate for our treatment of major hidden dangers;100% check-up rate for our employee occupational health.
"Grassroots Engagement and Feedback Collection" Special Research at Xiamen Xiangyu
"Grassroots Engagement and Feedback Collection" Special Research
From March to June 2023, the Company embarked on an immersive research program, engaging with29 grassroots party organizations and 42 companies under the theme "Grassroots Engagement andFeedback Collection". After review, a comprehensive collection of 280 insights and recommendationswas compiled from these entities. Our dedicated research team meticulously recorded each piece offeedback, assigning respective responsible departments and individuals, making clear the correctiveactions, and establishing a timeline for such actions. Timely updates on the implementation ofthese measures were given to the research unit to ensure follow-up and resolution. Meanwhile, theCompany has convened multiple symposiums to attentively gather and consider the opinions andsuggestions from employees regarding equity, with an ongoing commitment to refine and expeditethe integration of employee feedback and rectification.
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering Smart
Xiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talent
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CultivatingPartnerships forJoint Achievement
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2023 Environmental, Social and Corporate Governance (ESG) ReportIn terms of occupational health and safety, Xiamen Xiangyu has set up a "1+3+X" HSE management systemframework. A suite of core management documents, including theHSE Management Manual,theHSE AccountabilitySystem and Objective Management Procedures, the Occupational Health, Safety, and Environmental ProtectionEducation and Training Management Procedures, theEmergency Management and Accident ManagementProcedures, and the General Emergency Response Planhas been developed and a dedicated work safety committeehas been established to enhance the integration of the system, reinforce the implementation of responsibilities,and ensure the effective execution of various policies and measures. Through continuous policy updates andorganizational consolidation, we will keep an eye on and continue to safeguard the occupational health and safety ofour employees.Framework of Occupational Health, Safety and Environment Management System at Xiamen Xiangyu
Chemical HazardsNoise
Dust (Grain Dust)Welding DustCoal Dust
High Temperature
Power Frequency
Electric FieldMain Occupational-disease-inductive Factors
HSE Management System of the Company
In strict compliance with national laws and regulations concerning the prevention and control of occupationaldiseases, the Company has established theOccupational Health Management Rules according to the Law on thePrevention and Control of Occupational Diseases and the Regulations on the Management of Occupational Healthin Workplaces, etc., and have conducted assessments of the primary factors that may lead to occupational diseasehazards, to improve the management level of occupational disease prevention and control.
Policy and Strategic Objective of Occupational Health, Safety and Environment Management at Xiamen Xiangyu
Achieving a zero-incident, zero-pollution, and zero-loss operation,
and establishing ourselves as arespected supply chain investment
and operation service provider.
Safety paramount, environmentforemost, people-centric,equipment sound.
Adhering to a people-centricapproach, prioritizing preventionand proactive risk identi?cation andcontrol, fostering a harmonious andsafe environment, and paving theway for sustainable development.
Strategic ObjectiveCore ValuesPolicy
HeadquartersA?liates
Management Manuals
Management Manuals
Management Procedures and Regulations
Procedure Documents
Management Standards
Assignment Files
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering Smart
Xiangyu through
Digitalization
Improving Quality
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Fostering Talent
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CultivatingPartnerships forJoint Achievement
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Key PerformanceThe Company allocated a total of RMB 4.89 million in work safety, of whichRMB 380,000was made for employee occupational health and safety showingan upward trend year-on-year;
employees participated in occupational disease physical examination, with a100% coverage rate for positions at risk of occupational diseases;The Company carried out132 safety emergency training sessions across its investedenterprises, and89 safety emergency drills, with a total of 3,130 participants.Xiamen Xiangyu places great emphasis on cultivating a safety culture and the nurturing of "soft power" essential forthe enterprise's safety development. The Company regularly organizes offline training for its safety managementteam and conducts safety preparedness lectures to continuously enhance staff safety expertise. Currently, theCompany boasts a certi?cation rate of 25.6% for registered safety engineers and 5.8% for ?rst-level registered ?reengineers. Meanwhile, in line with theSpecial Work Safety Inspection and Safety Management StandardizationTeam Construction Supervision Plan of Xiamen Xiangyu Group, the Company continues to advance the supervisionover the safety management standardization teams. These teams are guided to compile data results focusing onimproving quality, e?ciency, customer service, operational assurance, and other areas, presenting ?ndings throughvisual graphics and videos. With these efforts, the Company has successfully established 4 exemplary teams,including the Rizhao Xiangming Oils Refining Team and the Suihua Xiangyu Jinggu Agricultural Machinery RepairTeam. Furthermore, we have vigorously implemented best operational and management practices, with a totalof 180 applications for award and an excellent award rate of 27.8% over three years. Besides, the Company alsostrengthens scienti?c and technological innovation, actively introducing and promoting new safety technologies,which reduce costs, increase e?ciency and ensure safety. These initiatives provide robust support for constructing asuperior occupational safety and health environment management system.
Safety Culture Building
The Second "Safety Army" Management Core Personnel
Training Class of Xiamen Xiangyu
Re?ning Team of Xiangming Oils
? Formulating
implementationplans for team safetystandardizationconstruction
?Selecting pilotprograms for teamsafety standardizationconstruction
?Nominatingbenchmarks for teamsafety standardizationconstruction
?Promotion of excellentwork practices
?Implementing accidentwarning education
?Applying positiveincentives and negativecriticism noti?cations
?Developing a safetyculture blueprint basedon Xiamen Xiangyuculture
?Instilling the philosophyof a distinctive safetyculture
?Promoting visual safetymanagement
Team Safety Standardization Initiative
Good Operation and Accident Warning
Planning for Building a Safety Culture
Installing AED First Aid Equipment to Ensure Life Safety of Employees
Xiamen Xiangyu has conducted a thorough analysisand evaluation of the feasibility and necessity ofinstalling AED on its office premises. Based on this,an implementation plan for the AED rescue initiativewas established (incorporating the placement ofequipment and the deployment of personnel),followed by investment in the "Life-Saving" AED ?rstaid equipment service, achieving comprehensivecoverage of AED devices throughout the XiamenXiangyu Group building. Additionally, ten certifiedAHA first aid professionals have been engaged toensure the life safety of all employees.
"Life-Saving" AED First Aid Equipment at Xiamen Xiangyu
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering Smart
Xiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talentfor Harmony
CultivatingPartnerships forJoint Achievement
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2023 Environmental, Social and Corporate Governance (ESG) Report
Examples of Safety Culture Walls of Grassroots Business Units of Xiamen Xiangyu
Key Performance
During the reporting period,The Company organized 14 safety meetings, with over340 participants; hosted 7 seminars on occupational safety, with 324 participants;and compiled and selected 18 exemplary practice outcomes;The Company conducted a total of18 safety assessment and service guidanceactivities, addressing18 complex issues including those on the high slope riskmanagement and the evaluation and enhancement of fire protection facilities;
organized 14 daily safety inspections, 11 special inspections, and 4 quarterlysupervisory checks, covering over52 job sites, issuing 20 on-site safety inspectionrecords.
Emergency Linkage Comprehensive Drill
From May to June 2023, in order to further amplify the outreach and education surroundingdisaster prevention and reduction, we spearheaded a comprehensive drill involving over 1,100participants from our affiliated investment enterprises at our headquarters for fire emergencyevacuation exercises and practical firefighting operation training. The successful holding of thisactivity not only bolstered the safety consciousness among our staff but also tested the viability ofour emergency plans and the proficiency of our employees in practical operations, laying a solidfoundation for building a safer working environment.
Emergency Drill of Xiamen Xiangyu
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering SmartXiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talentfor Harmony
CultivatingPartnerships forJoint Achievement
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2023 Environmental, Social and Corporate Governance (ESG) Report
Xiamen Xiangyu values fostering a sense of social responsibility among its employees, encouraging them to activelyengage with social issues in their daily lives. A variety of public welfare training sessions and events were organizedregularly for employees to inspire their enthusiasm for philanthropy and to channel positive energy into societythrough tangible actions. In 2023, we conducted a total of 43 employee volunteer activities, re?ecting our ongoingconcern and positive contributions to the realm of social welfare.
Social Welfare
Xiamen Xiangyu Employee Volunteer Activity
Public Welfare ActivitiesXiamen Xiangyu always bears in mind its social responsibility and is committed to giving back to society. We activelyengaged in a series of activities, including enthusiastic social charities, environmental conservation efforts, andlegal promotion campaigns, to demonstrate our corporate compassion. In addition, we are at the forefront of ruralrevitalization initiatives, earnestly ful?lling our political and social responsibilities in targeted assistance programs,thereby contributing to the construction of a better society.
In 2023, Xiamen Xiangyu, guided by the Thought of Xi Jinping on Socialism with Chinese Characteristics for a NewEra, diligently embraced and implemented the spirit of the 20th National Congress of the CPC. We fully executed thestrategic plan of the Central Government to consolidate and expand the achievements of poverty alleviation andto comprehensively promote rural revitalization, facilitating the growth of village collectives with relatively weakereconomic strength, and ensuring they share the fruits of economic prosperity. Through proactive engagement inrural revitalization projects, which is a testament to our commitment to social responsibilities and our dedication tothe undertaking of state-owned enterprises, we have made due contributions to fostering social equity, harmony,and sustainable development.
Rural Revitalization
Key Performance
In 2023, the Company participated in a total of 4 rural revitalization projects.
Industrial Assistance Project in Guoxi Village, Xiamen, Fujian ProvinceIn 2023, the Company took a proactive stance in assisting Guoxi Village in Xiamen, FujianProvince with its industrial growth. We revitalized dormant land resources and brought to lifethe village's inherent cultural heritage. By advertising space construction, we created outdoorpublicity platforms. We enhanced consumer support initiatives and expanded avenues for incomegeneration. Additionally, through measures such as improving road governance and cultivating agood civilized environment, we helped the village to meet its collective economic income target ofRMB 500,000 ahead of schedule by the end of 2023.
"Xiamen Xiangyu - Guoxi Village" Assistance Project
Xiamen Xiangyu Management Engaging in Joint Construction Support Activity
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering Smart
Xiangyu throughDigitalization
Improving Quality
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CultivatingPartnerships forJoint Achievement
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2023 Environmental, Social and Corporate Governance (ESG) Report
Xiangyu SOE Carrying Out "Warmth on Double Nine Festival" Condolence Activity
Xiangyu SOE's Pre-Spring Festival Visits to Employees in Hardship
In October 2023, Xiangyu SOE initiated visitations during the Double Ninth Festival to honor theCompany's retired staff and impoverished elderly in Tianhougong Village, Nantong City, JiangsuProvince. These visits were to convey condolences and festive greetings, embodying the Company'swarmth and care. The Company will continue to uphold this tradition, diligently performing its duty tocomfort retired employees and striving to give back to society.
In January 2023, the trade union of Xiangyu SOE reached out to eight employees facing difficulties.During these visits, the trade union representatives engaged in warm conversations with the affectedemployees, gaining an in-depth understanding of their family and health conditions, and providedthem with financial assistance on behalf of the Company and the trade union.
Xiangyu SOE Visiting the Centenarian in Tianhougong Village
Xiamen Xiangyu Trade Union Representatives Visiting Employees in Hardship
Xiangyu SOE Visiting Retirees
Xiangming Oils' Initiative in Laws Education Volunteer ServiceIn December 2023, Xiangming Oils took a proactive step in fulfilling its social responsibilities byorganizing a volunteer service aimed at law education and publicity for frontline staff, includingtruck drivers, security guards, and canteen workers. During the activity, volunteers employed real-life scenarios to elucidate legal provisions, using "case interpretation" to effectively foster legalconsciousness among participants, encouraging them to respect, learn, comply with, and use the law.
Volunteers of Xiamen Xiangyu in Action
"One-Day No-Driving" Environmental Awareness CampaignIn February 2023, Xiamen Xiangyu Group responded to the call for green travel by regularly conductingthe "One-Day No-Driving" campaign, taking tangible actions to jointly build a more eco-friendly EgretIsland and Xiamen. On the designated day, employees typically accustomed to driving opted for publictransportation, shared bicycles, or walking and other more environmentally friendly modes as theirmeans of commuting, showcasing the Company's active advocacy of a low-carbon lifestyle.
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering Smart
Xiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talent
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CultivatingPartnerships forJoint Achievement
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2023 Environmental, Social and Corporate Governance (ESG) Report
Xiamen Xiangyu consistently views openness and collaboration as essential to innovation and shared progress,, continuouslyexpanding its international perspective and incorporating wisdom and experience from across the industry and beyond. Guidedby this philosophy, the Company actively participates in industry-academia-research partnerships, establishing close ties witheducational institutions and industrial associations to share knowledge, discuss technological advancements, and jointly explorenew opportunities in the supply chain sector. These extensive partnerships and exchanges have pooled the expertise of professionalsacross various ?elds, fostering innovation and advancement in supply chain management, driving to create a symbiotic ecosystemthat promotes mutual bene?ts and leads the industry towards sustainable growth.
CultivatingPartnerships forJoint Achievement
Embracing Low-Carbon Style for a
Green Xiangyu
Empowering Smart
Xiangyu through
Digitalization
Improving Quality
through Steadyand InnovativeDevelopment
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CultivatingPartnerships forJoint Achievement
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2023 Environmental, Social and Corporate Governance (ESG) Report
Industry-Academia-Research CollaborationIn 2023, Xiamen Xiangyu has furthered its engagement with higher education institutions to nurture industry-academia-research collaboration, creating a positive brand image among outstanding students. In the future, we willcontinue to invest in the career trajectories of students, o?ering competency training and career guidance to supporttheir professional development, while re?ning the talent cultivation and development mechanisms within school-enterprise partnerships to establish exemplary models of collaboration, and enhance our employer brand presenceand market recognition on campuses."Xiangxinli Cup" Industry Research CompetitionIn July 2023, Xiamen Xiangyu spearheaded the Third "XiangxinliCup" Industry Research Competition, drawing participation from89 teams across 60 universities, including the Renmin University ofChina, Central University of Finance and Economics, and XiamenUniversity, with a total of 239 participants. The competitionfocused on three key topics within the national consumergoods sector: "refined oil", "live pig", and "lithium carbonate".Participants delved into research and analysis around these topics,forecasting the future of relevant industries and presenting theirfindings. Through the Competition, Xiamen Xiangyu not onlyhoned the practical skills and professional caliber of the students,but also strengthened the Company's ties with the academiccommunity, providing invaluable resources and opportunities fortalent scouting and development.
The Scene of the Third "Xiangxinli Cup"Competition at Xiamen Xiangyu
School-Enterprise Activities with Singapore's Premier UniversitiesIn October 2023, Xiamen Xiangyu was invited to partake in the career fair and school-enterprise symposium atthe National University of Singapore and Nanyang Technological University. During the activities, the Companyengaged in profound discussions with university faculties regarding collaborative initiatives, internships, andemployment training for students, and actively provided career planning guidance and development support forthe students. Through interactive Q&A sessions, the Company gained a deeper understanding of students' careerconfusions and aspirations, promoting the career advancement of overseas students, while fostering closer school-enterprise relationships, realizing the complementary strengths of both educational institutions and the corporatesector, and broadening the overseas reach of Xiamen Xiangyu's employer brand.
Xiamen Xiangyu Participating in the O?ine Career Fair
of National University of Singapore
Xiamen Xiangyu International HRBP Invited to Participate in
the NTU Career Symposium as an Alumnus
Hong Kong Universities' Employment Exchange Events
Renowned Enterprise Studio of Southwestern University of Finance and Economics
In November 2023, we were honored to be invited to the Innovation Hong Kong-Global Talent Carnivaland the Chinese University of Hong Kong's Career Fair, enabling the enhancement of our partnershipwith educational institutions within the Guangdong-Hong Kong-Macao Greater Bay Area. During theevents, we engaged proactively with top-tier university students, showcasing our career advancementopportunities and corporate ethos, and addressing students' inquiries regarding career planning anddevelopment. Concurrently, we held in-depth discussions with leading universities on talent cultivationand recruitment strategies, exploring new models of collaboration between academia and industry.These efforts have infused new energy into the educational and industrial landscape of the Greater BayArea, while solidifying a robust foundation for our talent pool and future development.
In December 2023, our leaders were invited to participate in the career cafe event of Southwestern Universityof Finance and Economics, where we witnessed the launch of the Renowned Enterprise Studio. During theevent, our leaders presented the evolution, business paradigms, and global outreach strategies of XiamenXiangyu to the attendees, and shared classic cases of the Company in actual operation. Furthermore, theyprovided profound insights on unleashing individual potential and bolstering job-hunting competitiveness.
The Scene of Hong Kong Universities' Employment Exchange Events Involved by Xiamen Xiangyu
The Scene of School-Enterprise Synergy at the Renowned Enterprise Studio of Southwestern University of
Finance and Economics Involved by Xiamen Xiangyu
Embracing Low-Carbon Style for a
Green Xiangyu
Empowering Smart
Xiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talentfor Harmony
CultivatingPartnerships forJoint Achievement
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2023 Environmental, Social and Corporate Governance (ESG) Report
Industry CooperationIn 2023, Xiamen Xiangyu continued its efforts to propel breakthroughs in standardization and industry dialogue.We actively contribute to the establishment of industry and group standards, fostering a collaborative environmentfor knowledge and outcome sharing. Besides, we attach great importance to extensive interactions and allianceswith industry peers, collectively envisioning and charting the industry's future. This re?ects our dedication to theindustry's sustainable growth and our role in supporting the high-caliber development of the entire industry.
Leveraging our industry leadership, we spearhead the creation of industry benchmarks, driving technologicalevolution and sectoral enhancement through involvement in the development of industry and group standards. Wehave participated in the formulation of theBasic Requirements for Digital Warehousesand theEvaluation Standardsfor Digital Warehousesissued by the National Development and Reform Commission, which provide vital guidanceand reference value for industry progression, amplifying our industry in?uence and catalyzing the industry's digitaland intelligent transformation.
Standard Preparation
Advanced Unit of Building China's Digital Warehousing Standard System 2023In 2023, we participated in the preparation of group standards such as theBasic Requirements for Digital SteelWarehousesand theBasic Requirements for Digital Coal Warehouses, o?ering digital warehouseapplicationscenarios and a technical reference basis for supply chain enterprises. These e?orts earned us the esteemed"Advanced Unit of Building China's Digital Warehousing Standard System 2023" accolade. The honor is atestament to our expertise in digital warehousing and an acknowledgment of our contributions to supplychain innovation and standard setting.
Xiamen Xiangyu Honored as a "Advanced Unit of Building China's Digital Warehousing Standard System 2023"
Adhering to the strategic thinking of "basing on supply chains, serving industry chains, and creating value chains", XiamenXiangyu fosters deeper partnerships with various industry associations and engages proactively in various industryexchange events. Alongside industry pioneers, we are exploring cutting-edge supply chain management methodologiesand paradigms, to propel the evolution of industry benchmarks. We keep absorbing fresh perspectives and insights,enriching our repository of industry knowledge and expertise. Meanwhile, we take pride in sharing Xiamen Xiangyu'sspecialized acumen and hands-on experience in supply chain management, offering a wellspring of reference for theindustry's advancement, in pursuit of a stable global industry and supply chain operation.
Industry Exchange
Preparation of Industry Standards Participated by Xiamen Xiangyu
Key Performance:
By the end of 2023, 4 industry standards and 3 group standards, with our participation,have been released and implemented.
Key Performance:
In 2023, the Company participated in 35 industry forums and technical exchanges,including the National EnterpriseManagement Innovation Conference, Wuhan FinancialExpo, China International SupplyChain Expo, and "The Belt and Road" Modern Agricultureand Food Security Development Cooperation Summit Forum.
ParticipationTimeRelease TimeStandard NameStandard No.
StandardClassi?cationMar. 2021Jul. 2022Basic Requirements for Digital WarehousesWB/T 1118-2022
Industry
StandardMar. 2021Jul. 2022Evaluation Standards for Digital WarehousesWB/T 1119-2022
Industry
Standard
Jun. 2022Jan. 2023
Classi?cation and Evaluation Index for SupplyChain Finance Service Providers
T/CFLP0051-2022
Group
StandardJun. 2021Aug. 2023
Evaluation Index for Green Logistics ofLogistics Service Providers
WB/T 1134-2023
Industry
StandardJun. 2021Aug. 2023
Requirements of the Greenhouse GasEmission Accounting and Reporting forLogistics Service Providers
WB/T 1135-2023
IndustryStandardDec. 2021Dec. 2023
Basic Requirements for Digital Steel
Warehouses
T/CFLP 0060-2023
GroupStandardDec. 2021Dec. 2023
Basic Requirements for Digital Coal
Warehouses
T/CFLP 0061-2023
GroupStandard
Embracing Low-Carbon Style for aGreen Xiangyu
Empowering Smart
Xiangyu throughDigitalization
Improving Quality
through Steadyand InnovativeDevelopment
Fostering Talentfor Harmony
CultivatingPartnerships forJoint Achievement
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2023 Environmental, Social and Corporate Governance (ESG) ReportRole of Xiamen Xiangyu and Its Senior Executives in Certain Industry Associations
Name of AssociationJoin TimePositionDigital Warehousing Branch, China Federation of Logistics & Purchasing2023Vice-chairmanChina Society of Grain Economics2023Council MemberXiamen Logistics Standardization Technical Committee2023ChairmanXiamen Modern Supply Chain Federation2022Vice-chairmanChina Iron and Steel Association2021MemberChina Grain Industry Association2020Vice-chairmanChina Coal Transportation and Distribution Association2020MemberXiamen Association of Grain Sector2019ChairmanXiamen Free Trade Zone Chamber of Commerce2018Vice-chairmanFujian Food Industry Association2016MemberXiamen Association of Listed Companies2011Vice-chairman
Hubei Chuxiang Delivering Keynote Speech at the Economic and Trade Negotiation EventIn March 2023, Hubei Chuxiang, a subsidiary ofXiamen Xiangyu, was honored as a special guest at the"Meeting Spring Cherry Blossom" Economic and TradeNegotiation and the World Top 500 Dialogue Event inHubei. During the event, Hubei Chuxiang presented onthe topic of "Supply Chain Service Models in the NewDevelopment Pattern". As a pivotal supply chain platformin Hubei Province, Hubei Chuxiang will continue toenhance collaboration with local businesses, exploreinnovative supply chain service models, and establish acomprehensive supply chain service system integratingprocurement and distribution, full-process logistics,inventory management, supply chain finance, digitalservices, and other functions, at the aim of propellingregional economic growth and actively contributing tothe high-quality development of the local economy.
Presentation by Wang Bin, the General Manager of
Hubei Chuxiang
Green Chain Movement for a Promising New Future
In April 2023, the Company participated as a strategic partner in the Yulin International Coal and High-endEnergy and Chemical Industry Expo, having profound exchanges and interactions with peers in the energy andchemical industry, to co-explore new pathways for the industry's transformation and upgrade. Looking ahead,we will leverage Yulin Xiangdao Logistics Co., Ltd.'s international logistics park as a central hub, activelyinvolving in and supporting the local economic development strategy of the Yulin Municipal Committee andGovernment.
Industry Exchange and Interaction Involved by Xiamen Xiangyu
Empowering Driven by Innovation and Digital IntelligenceIn April 2023, the Company was invited to deliver a keynote speech at the National Enterprise ManagementInnovation Conference. The presentation was made around "Digital Intelligence-Driven Multimodal TransportSystems and Supply Chain Services", showcasing the Company's achievements and insights on enhancingtechnological applications and improving service e?ciency.
Sun Gang, Assistant General Manager of Xiamen Xiangyu, Delivering a Keynote Speech
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2023 Environmental, Social and Corporate Governance (ESG) ReportXiamen Xiangyu Co., Ltd.
ESG Performance
Indicators2023 DataUnitCorporate Governance IndicatorsNumber of Meetings of the Board of Directors Held15TimeNumber of Meetings of the Board of Supervisors Held8TimeNumber of General Meetings of Shareholders Held6TimeNumber of Meetings of the Audit Committee Held10TimeNumber of Meetings of the Remuneration and AppraisalCommittee
4TimeNumber of Meetings of the Investment and Development(Strategy) Committee Held
1TimeNumber of Members of the Board of Directors9PersonNumber of Independent Directors3PersonNumber of Female Directors1PersonAverage Length of Tenure of Directors3.56YearAverage Age of Directors56.33AgeNumber of Members of the Board of Supervisors3PersonNumber of Employee Supervisors1PersonNumber of Copies of Periodic Announcements Issued4CopyNumber of Copies of Interim Announcements Issued80CopyNumber of Investor Questions Answered on the SSEE-interactive
50PieceNumber of Investor Calls Taken300TimeNumber of Investor Relations Emails Handled100PieceNumber of Investor Exchange Events8Session
Global Food Security - A Shared Journey
In December 2023, Chen Daizhen, Chairman of Xiangyu Agricultural Products, delivered a keynote speechat "The Belt and Road" Modern Agriculture and Food Security Development Cooperation Summit Forum,sharing the Company's practical experiences in promoting cooperation in food and agriculture under theBelt and Road Initiative, and engaged in discussions with industry experts, government leaders, businessrepresentatives, and scholars on new methods and models to enhance the resilience of the food industrychain and supply chain, thereby improving global food security levels.
Chen Daizhen, Deputy General Manager of Xiamen Xiangyu, Giving a Keynote Speech
Unveiling "Xiangyu Red" at the First China International Supply Chain ExpoIn November 2023, Xiamen Xiangyu, a leading domestic commodity supply chain service enterprise inChina, participated in the First China International Supply Chain Expo. At this key Expo, the Companycomprehensively displayed its business approach of basing on supply chains, serving industry chains, andcreating value chains.
The Booth of Xiamen Xiangyu at the Expo
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2023 Environmental, Social and Corporate Governance (ESG) ReportXiamen Xiangyu Co., Ltd.
Indicators2023 DataUnitNumber of Anti-corruption Training15SessionNumber of Major Cybersecurity Incidents0EANumber of Con?rmed Cybersecurity Incidents0EANumber of Cybersecurity Training 4TimeNumber of Cybersecurity Emergency Drills1TimeNumber of Con?rmed Data Breaches0EAEconomic and Service IndicatorsOperating Incomes4,590.35RMB 100 millionNet Pro?ts Attributable to Shareholders of the ListedCompany
15.74RMB 100 millionInvestments in Digital Construction23,083RMB10,000Number of Digital Construction Empowerment Training40SessionNumber of Employees Participating in Training Related toDigital Construction
825Person-TimeNumber of Management Personnel Participating in TrainingRelated to Digital Construction
240Person-TimeNumber of Full-Time Employees at The HeadquartersResponsible for the Company's Information Construction
18PersonNumber of Talents Transferred to Departments (Itbp)110PersonNumber of New Patents and Intellectual Property Rights4PieceEmployee and Social IndicatorsTotal Number of Employees8,565PersonNumber of Employees with Disabilities7PersonNumber of Professional Military Employees74PersonBy GenderNumber of Male Employees5,502Person
Indicators2023 DataUnitNumber of Female Employees3,063PersonBy AgeNumber of Employees Aged 30 and Below3,007PersonNumber of Employees Aged 31 to 403,384PersonNumber of Employees Aged 40 to 501,500PersonNumber of Employees Aged 51 and Above674Person
By Geographic DistributionNumber of Employees Working in Chinese Mainland8,462PersonNumber of Employees Working in Hong Kong, Macao andTaiwan
10PersonNumber of Employees Working in Other Countries andRegions
93PersonBy Education DegreeNumber of Employees with Doctoral Degree4PersonNumber of Employees with master's degree 796PersonNumber of Employees with bachelor's degree3,941PersonNumber of Employees with associate degree3,824PersonBy MajorPercentage of Production Personnel27%Percentage of Salespeople18%Percentage of Technicians3%Percentage of Financial Personnel9%Percentage of Administrative Sta?16%Percentage of Service Personnel24%Number of Other Personnel2%
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2023 Environmental, Social and Corporate Governance (ESG) ReportXiamen Xiangyu Co., Ltd.Indicators2023 DataUnitNumber of Employees Receiving Training4,385Person-TimeLength of Training Received by Employees94,398HoursLength of Training per Employee22HoursInvestments in Work Safety489RMB10,000Number of Employees Participating in OccupationalDisease Physical Examinations
460PersonPhysical Examination Coverage Rate of Positions at Risk ofOccupational Diseases
100%Number of Safety Emergency Training132SessionNumber of Safety Emergency Drills89TimeNumber of Employee Volunteering Activities43TimeNumber of Rural Revitalization Projects Involved4EANumber of Industry Forums and Technical ExchangeMeetings Involved
35TimeTotal tax paid322,861.40RMB 10,000Environmental IndicatorsInvestments in Energy Conservation and EmissionReduction
675RMB 10,000Raw Coal Consumption23,768.91TonFuel Oil Consumption190.29TonDiesel Consumption12,110,990.80LGasoline Consumption360,421.01LNatural Gas Consumption431,369m
Steam Consumption173,202.45m
Purchased Electricity Consumption36,232,975.20kWhTotal Water Use170,860m
Indicators2023 DataUnitWater Conservation (Recycle/Reuse Water)16,406m
Total Exhaust Emissions156,734,937m
Particulate Matter Content of Exhaust90.789mg/m
Nitrogen Oxide Content of Exhaust443.735mg/m
Sulfur Oxide Content of Exhaust367mg/m
Vocs Emissions of Exhaust20.1mg/m
Total Wastewater Discharge55,063m
Chemical Oxygen Demand (Cod) of Wastewater 8.749mg/LFive-Day Bod (Bod5) of Wastewater2.039mg/LSuspended Solids Content of Wastewater1.66mg/LAmmonia Nitrogen Content of Wastewater0.484mg/LTotal Phosphorus of Wastewater0.8782mg/LTotal General Solid Waste2,086.7TonTotal Hazardous Waste4.47354Ton
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2023 Environmental, Social and Corporate Governance (ESG) ReportXiamen Xiangyu Co., Ltd.ContentsGRI StandardsRisk Management
G2-23 Policy commitmentsG2-24 Embedding policy commitmentsBusiness Ethics
G2-25 Processes to remediate negative impactsG2-26 Mechanisms for seeking advice and raising concernsG205-2 Communication and training about anti-corruption policies and proceduresEmbracing Low-Carbon Style for a Green XiangyuEnvironmental Management
G2-23 Policy commitmentsG2-24 Embedding policy commitmentsG403-5 Worker training on occupational health and safetyEnergy Saving and Emission Reduction
G302-1 Energy consumption within the organizationG302-5 Reductions in energy requirements of products and servicesG303-5 Water consumptionG305-5 Reduction of GHG emissionsThree Wastes Treatment
G303-2 Management of water discharge-related impactsG306-2 Management of signi?cant waste-related impactsG306-3 Waste generatedEmpowering Smart Xiangyu Through DigitalizationDigital Framework/Digital System/Information Security/
Improving Quality Through Steady and Innovative Development
Quality Management
G2-25 Processes to remediate negative impactsG416-1 Assessment of the health and safety impacts of product and servicecategoriesLogistics Capability/Supplier Management
G308-1 New suppliers that were screened using environmental criteriaG414-1 New suppliers that were screened using social criteria
Fostering Talent for Harmony
Equal Employment
G2-7 EmployeesG2-23 Policy commitmentsG2-24 Embedding policy commitmentsG405-1 Diversity of governance bodies and employeesG413-1 Operations with local community engagement, impact assessments, anddevelopment programs
Index
Instructions
In the preparation of the 2023 Environmental, Social and Governance (ESG) Report of Xiamen Xiangyu Co.,Ltd. (Reporting Period: January 1 to December 31, 2023), we referred to GRI Standards for reporting theinformation cited in this GRI Index.GRI 1 UsedGRI 1: Foundation 2021
ContentsGRI Standards
About This Report
G2-1 Organizational detailsG2-2 Entities included in the organization's sustainability reportingG2-3 Reporting period, frequency and contact pointG2-4 Restatements of informationMessage from the Chairman
G2-11 Chair of the highest governance bodyG2-17 Collective knowledge of the highest governance bodyG2-22 Statement on sustainable development strategyAbout Xiamen Xiangyu
G2-6 Activities, value chain and other business relationshipsG201-1 Direct economic value generated and distributed
Sustainable Development Management
G2-13 Delegation of responsibility for managing impactsG2-14 Role of the highest governance body in sustainability reportingG2-16 Communication of critical concernsG2-22 Statement on sustainable development strategyG2-29 Approach to stakeholder engagementG3-1 Process to determine material topicsG3-2 List of material topicsBene?ting All With Robust GovernanceParty BuildingG2-12 Role of the highest governance body in overseeing the management of impacts
Corporate Governance
G2-9 Governance structure and compositionG2-11 Chair of the highest governance bodyG2-12 Role of the highest governance body in overseeing the management of impactsG2-15 Con?icts of interestG2-19 Remuneration policiesG2-20 Process to determine remunerationG2-27 Compliance with laws and regulationsG405-1 Diversity of governance bodies and employeesInformation Disclosure and InvestorRelations Management
G2-16 Communication of critical concerns
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2023 Environmental, Social and Corporate Governance (ESG) ReportXiamen Xiangyu Co., Ltd.
Reader FeedbackDear Readers,Thank you for reading the 2023 Environmental, Social and Governance (ESG) Report of Xiamen Xiangyu Co., Ltd..In order to provide you and other stakeholders with more professional and valuable ESG information of us, pleaseassist us in completing the feedback form, so as to help us further improve our ESG work in the future.Multiple Choice Questions (Please click ? as appropriate)
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ContentsGRI Standards
Remuneration and Bene?ts
G2-19 Remuneration policiesG2-20 Process to determine remunerationG201-3 De?ned bene?t plan obligations and other retirement plansG401-2 Bene?ts provided to full-time employees that are not provided to temporaryor part-time employeesTraining Enhancement
G404-1 Average hours of training per year per employeeG404-2 Programs for upgrading employee skills and transition assistanceEmployee Rights
G403-4 Worker participation, consultation, and communication on occupationalhealth and safety
Occupational Health and Safety
G403-1 Occupational health and safety management systemG403-2 Hazard identi?cation, risk assessment, and incident investigationG403-3 Occupational health servicesG403-5 Worker training on occupational health and safetyG403-6 Promotion of worker healthG403-7 Prevention and mitigation of occupational health and safety impacts directlylinked by business relationshipsG403-8 Workers covered by an occupational health and safety management systemG403-10 Work-related ill healthPublic Welfare Activities
G203-1 Infrastructure investments and services supportedG203-2 Signi?cant indirect economic impactsCultivating Partnerships for Joint AchievementIndustry-Academia-ResearchCollaboration
/Industry CooperationG2-28 Membership associations