Consolidate Governance toJointly Build the Foundationfor DevelopmentSpecial Focus: "Chain"Connecting the World toServe the Needs of theCountry
Risk Control Orientation to SecurelyAdhere to the Compliance Bottom LineStandardized Operations to AchieveEfcient and Steady GovernanceHonest Business Operation to Adhere toCommercial EthicsKey Performance TableSystem Certication OverviewIndex of IndicatorsIndependent Assurance andStatement of OpinionReader Feedback Form
Report Preparation DescriptionMessage from the ChairmanAbout Xiamen XiangyuESG Management
1626
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growth andCoexistence to Jointly Draw aBeautiful BlueprintEnvironmental Compliance toConsolidate Responsibility Management
Innovation-driven, Escort IndustrialUpgradingPollution Prevention and Control toPromote Ecological Protection
People-oriented, Compose a BrightFutureEnergy Conservation and CarbonReduction to Respond to Climate Change
Gather Sincerity, Build CooperativeEcosystemResource Conservation to DevelopRecycling Economy
Take Responsibility, Share DevelopmentAchievements
4662
54795068
5898
4460
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
0203
Report Preparation Description
Reporting Period andTime Frame
Reporting Subject
Report PreparationBasis
Data DescriptionReliability Assurance
Report Access
Contact Information
The Environmental, Social and Governance (ESG) Report 2024 of Xiamen Xiangyu Co., Ltd. is the third annual ESG report releasedby Xiamen Xiangyu Co., Ltd. This Report aims to truthfully, accurately and completely disclose the efforts and achievements made bythe Company in practicing high-quality sustainable development to all stakeholders, including governments, regulatory authorities,shareholders, investors, customers, suppliers, industry, employees, and the public.
As an annual report, this Report covers the period from January 1, 2024 to December 31, 2024(Hereinafter referred to as "The Reporting Period"), and in order to enhance the comparability andcompleteness of this Report, some contents are appropriately extended to previous years.
The disclosure scope of this Report covers Xiamen Xiangyu and its subordinate companies.For the convenience of expression and reading, the subordinate companies mentioned in thisReport are referred to by abbreviations, and the specic references are as follows:
United Nations 2030 Sustainable Development Goals (SDGs)Sustainability Reporting Standards issued by Global Sustainability Standards Board (GRIStandards).Guidelines No.14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies –Sustainability Report (Trial) issued by the Shanghai Stock Exchange (Hereinafter referred to as"The Exchange Guideline")Guidance No.4 of Shanghai Stock Exchange for Self-Regulation of Listed Companies–Sustainability Report Preparation issued by the Shanghai Stock Exchange (Hereinafter referredto as "Exchange Guidance")Guidelines for Sustainability Report of Listed Companies issued by the China Association forPublic CompaniesGuidelines for Sustainability Report of Chinese Enterprises issued by Chinese Academy ofSocial Sciences (CASS-ESG 6.0)The nancial data in this Report are all denominated in CNY.The Company and all members of the Board of Directors warrant that the information disclosedherein is true, complete and accurate, without any false records, misleading statements orsubstantial omissions.For the purpose of low carbon and environmental protection, we will issue this Report inelectronic form. To access this Report, you may read the electronic version on our website(www.xiangyu.cn/index.aspx) or www.cninfo.com.cn. This Report is provided in both Chineseand English versions for the readers. In case of any ambiguity or inconsistency due to languagereasons between the two versions, the Chinese version shall prevail.Address: 11F, Block B, XMXYG CORP. Building, No. 85, Xiangyu Road, Xiamen Area of Pilot FreeTrade Zone, Huli District, XiamenTel: 0592-651600
AbbreviationFull Name
Xiamen Xiangyu, Xiangyu,Company, the Company, We
Xiamen Xiangyu Co., Ltd.Xiangyu GroupXiamen Xiangyu Group CorporationXiangyu AgriculturalProducts
Heilongjiang Xiangyu Agricultural Products CorporationSuihua XiangyuSuihua Xiangyu Cereals and Oil Technologies Co., Ltd.Xiangyu SOENantong Xiangyu Shipbuilding & Offshore Engineering Co., Ltd.Xiangming OilsRizhao Xiangming Oils Co., Ltd.Xiangdao LogisticsXiangdao Logistics Group Co., Ltd.Xiangyu Logistics GroupXiamen Xiangyu Logistics Group Co., Ltd.Shaanxi XiangdaoShaanxi Xiangdao Logistics Co., Ltd.Xiangyu New EnergyXiamen Xiangyu New Energy Co., Ltd.Zhuoyu Supply ChainXiamen Zhuoyu Supply Chain Management Co., Ltd.Xiangyu SingamasXiamen Xiangyu Singamas Container Co., Ltd.Xiangyu AluwinXiamen Xiangyu Aluwin Co., Ltd.Chengdu XiangdaoChengdu Qingbaijiang Xiangdao Logistics Co., Ltd.Chengda ProductsChengda Products (Xiamen) Co., Ltd.Fujian XingdaFujian Xingda Import & Export Trading Co., Ltd.Taiping LogisticsXiamen Xiangyu Taiping Comprehensive Logistics Co., Ltd.Xiangyu ProductsXiamen Xiangyu Products Co., Ltd.Xiangyu ResourcesXiamen Xiangyu Resources Co., Ltd.Xiangyu ElinkXiamen Xiangyu Elink Multitrans Co., Ltd.Xiangyu Smart TechnologyXiamen Xiangyu Smart Technology Co., Ltd.Beijing Xiangyu DigitalTechnology
Beijing Xiangyu Digital Technology Industry Co., Ltd.Xiangyu SuperchainXiamen Xiangyu Superchain Supply Chain Development Co., Ltd.Xiangyu ZhengfengTangshan Xiangyu Zhengfeng International Logistics Co., Ltd.Liangshan XiangyuLiangshan Xiangyu Supply Chain Co., Ltd.Yi’an Agricultural ProductsYi’an County Pengyu Trading and Logistics Co., Ltd.Xiamen SingamasXiamen Xiangyu Singamas Container Co., Ltd.
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
0405
Message from the Chairman
Dear investors, partners, employees and friends from all walks of life.Hello, everyone.In 2024, the complex situation of the world evolved further, and the global economic trade order accelerated itsreconstruction. In this year lled with challenges and opportunities, Xiamen Xiangyu anchored its high-quality developmentdirection with strategic determination, and drove its transformation and upgrading with innovative momentum. Moreover,we consolidated basic business operations via adhering to the right path and innovation, and forged core competitivenessthrough improving efciency and enhancing quality, achieving the steady improvement of the development quality.In 2024, adhering to the principle of long-termism, we regarded ESG as the strategic support for corporate transformationand upgrading, and we integrated outstanding environmental performance, profound social value, and sound governancesystems into our business practices from all aspects, so we promoted sustainable development with a higher perspectiveand more practical measures, moving towards the goal of becoming a world-class supply chain service enterprise.
Green is used as a brush to paint a new picture of sustainable development. We actively responded to the national "Carbon
Peaking and Carbon Neutrality" strategy, integrating the concept of green development into all links of the industrial chain,so that the "green content" of supply chain was converted into the "gold content" of development. Through establishing anenvironmental protection facility system, promoting the application of clean technologies, and optimizing the green logisticsnetwork, we have systematically reduced carbon emissions in the operational process, making green development aremarkable feature of the enterprise. Furthermore, relying on the deep integration between digital technology and industrialscenarios, we launched supply chain service platforms such as "Yu Lian Tong" and "Smart Transportation", creating a newmodel of green and efcient services to reshape the supply chain ecosystem with new quality productivity.Responsibility is used as the ink to write the answer to the era of mutual benefit and win-win. We built a development
community where employees and the enterprise could grow together, and created a comprehensive customer-focusedservice system, exploring the optimal solution between economic benefits and public value. On the way to fulfillingresponsibilities and obligations, we not only focused on the present to refine safety, environmental protection, andoccupational health systems, empowering employees to realize their self-worth via systematic training and multi-dimensionalincentive mechanisms; but also we had a long-term perspective, such as contributing to rural revitalization via preciseassistance and conveying warmth via environmental public welfare, so that the mission and responsibility of the state-ownedenterprise was transformed into a solid force for social progress.
Governance is used as the foundation to build a steady and sustainable corporate model. Supported by the moderncorporate governance system, we built a scientic and standardized decision-making mechanism, and constantly improvedthe management structure and allocation of rights and responsibilities. Through optimizing the ESG governance structure,enhancing risk control and commercial ethics supervision, and improving the quality of information disclosure, we constantlyconsolidated the development foundation to create long-term sustainable value for stakeholders.Looking back on 2024, our exploration and practice in various ESG elds were recognized by a wide range of stakeholders.These achievements would not have been possible without the support and trust of every investor, partner, employee, andfriend from all walks of life. Looking forward, Xiamen Xiangyu will continue to uphold the mission of "Benet the World,Achieve Success Together", and stand at the forefront tide of global supply chain reconstruction, integrating global resourceswith an open and inclusive attitude, forging supply chain resilience with innovation-driven posture, reshaping the industrialchain ecosystem with the concept of green and sustainable development, and taking professionalism and responsibility as atool, so that we will realize greater achievements in the new journey of building a modern industrial system, further writing anew chapter of high-quality corporate development.
Chairman of Xiamen Xiangyu Co., Ltd.: Wu Jie
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
0607
About Xiamen XiangyuCompany ProleHolding the corporate vision of "becoming a world-class supply chain service enterprise" and taking the mission of serving the nationalstrategy and regional economic development, Xiamen Xiangyu adheres to the strategic idea of "based on the supply chain, serving theindustrial chain, and creating the value chain", and we rely on the "Xiangyu Comprehensive Service Platform of Digital Smart SupplyChain" to quickly respond to customer needs. Moreover, we integrate global high-quality resources to provide a diversified serviceportfolio, and customize and output integrated supply chain solutions in order to strive to build a safe, stable, smooth and efcientindustrial chain and supply chain system, creating a mutually benecial and win-win value ecosystem. At present, the Company hasformed staple commodity supply chain service systems for agricultural products, energy & chemicals, metal minerals and new energy,and the market share of our core advantageous varieties ranks among the top in the industry. In addition, Xiamen Xiangyu’s cooperativemerchants operate in over 110 countries, and our investment enterprises cover the main provincial regions in China, based on which wefurther link to Europe and Asia and reach America and Africa to serve as a hub for cross-border cooperation and a bridge for internationalexchanges, contributing to building an open economic system which is mutually benecial, diversied, balanced, safe and efcient.
The Company takes the countries and regions along the Belt and Road Initiative as the strategic layout direction, actively expands theinternational market, and has established extensive business connections with over 110 countries. Moreover, we focus on linking high-quality overseas procurement & sales channels, and deeply exploring the overseas supply chain demands of large Chinese enterprises.In order to further serve global customers, the Company has set up overseas operating entities in Singapore, Vietnam, Indonesia, andSouth Africa as "service stations" for overseas business, empowering our international business network and providing customers withconvenient and efcient local services. During the reporting period, the Company achieved a total import & export and transshipmentbusiness in the amount of approximately USD 22.4 billion, among which the total amount of import & export was approximately USD
14.4 billion. The cooperation amount with "BRICS" countries, "Belt and Road" and the countries along thereof, South America and African
countries was increased by more than 50% year-on-year, and the export amount was increased by more than 60% year-on-year.
Business Coverage Area
Netherlands
FinlandGermanyFranceSpain
SenegalGuinea
Nigeria
Congo
Kenya
Zimbabwe
MadagascarSouth Africa
Australia
Canada
United StatesMexico
Colombia
BrazilPeru
Chile
Argentina
Saudi Arabia
UAE
IndiaPakistan
Uzbekistan
Mongolia
South Korea
Japan
PhilippinesVietnamThailand
Singapore
Indonesia
Malaysia
New Zealand
Turkey
Britain
Total volume of import & exportand transshipment business in 2024:
Approximately USD 22.4 billion
Key business operation countriesCore logistics channelsInternational chartering of dry bulk cargo transportationNote: This is a non-standardized map, and the logistics channelsare not the actual paths, which are provided for reference only.
PhotovoltaicProducts Export
Coking Coal Import
Crude OilProcurement
Xiangyu Group's 2.5 Million Tons ofIntegrated Stainless Steel SmeltingProject in Indonesia
Iron Ore and Thermal Coal
Import
Iron Ore ImportImports of Minerals(e.g. Lithium Ore,Bauxite)
Australia
Southeast Asia
Europe
Africa
South America
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
0809
The Company is committed to becoming a world-class supply chain service enterprise, and focuses on providing one-stop supply chainsolutions for manufacturing enterprises. Our core services include staple raw and auxiliary material procurement and supply, nishedproduct distribution, logistics delivery, supply chain nance, and information consultation, and we conduct constant self-innovation toensure the stability and efcient operation of the supply chain, driving the industry towards a more efcient and sustainable developmentdirection and growing and creating value together with customers.
Main Business
Main BusinessCorporate Culture
Important Honors
Including shipbuilding, mineralprocessing, oil processing, etc.
Including comprehensivelogistics, railway logistics,agricultural product logistics,aluminum industry logistics,etc.Including metal minerals,agricultural products, energychemicals, new energy, etc.
Benet the World, AchieveSuccess Together
Corporate Mission
Grassroots Spirit, Devotionto UndertakingsCorporate Spirit
To become a world-classsupply chain servicecompany
Corporate Vision
Risk First,Building a FirmFoundation in the Market,Cooperation for Win-winResults,Innovative Development,Two-wheel Drive
Five Concepts
Value creation-centeredCore Values
Assume Responsibilityand Take Action,Be Pragmatic andEfcient,Be Customer-oriented,Be Open and Inclusive,Be Pleasant andStraightforward
Five-star Behaviors
C
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o
d
ity
O
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e
ra
ti
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Commodity
Logistics
P
rod
u
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Ma
nufactur
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2024 Shanghai Stock Exchange ?Golden Quality ? ESG AwardShanghai Securities News
2023 Top 100 National General
Warehousing Enterprises(Second Place)China Association ofWarehousing and Distribution
2023 "Excellent Issuer of
Belt and Road Bonds"
Shanghai Stock Exchange
Top 100 2024 China Best
Employer AwardZhaopin Limited
Most Influential Employers
2025
Haitou
2023 Golden Bull Award forMost Valuable Investment
China Securities Journal
Top 50 Chinese LogisticsEnterprises (Second Place)
China Federation of Logistics
and Purchasing
The 8th China Excellent
IR "Best Capital MarketCommunication Award" and
"Best ESG Rookie Award"Roadshow China and its sub-brand Excellent IR
2024 China Treasury Awards
"Best Treasurer ? Global
Treasury ManagementAward"Treasury China
2024 Extraordinary
Employer
Liepin
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
1011
ESG Management
ESG Governance Structure
ESG Honors
Holding the corporate vision of "becoming a world-class supplychain service enterprise", Xiamen Xiangyu actively respondsto the 17 UN Sustainable Development Goals (SDGs),focusing on environmental friendliness, social responsibilityand improvement of governance efciency to fully safeguardthe rights and interests of stakeholders, and we share ourdirection and achievements in achieving the sustainabledevelopment goals via regular information disclosure tostakeholders.Xiamen Xiangyu has established a sound ESG managementstructure. The Board of Directors authorizes the Strategyand Sustainable Development Committee to supervise andmake decisions on our ESG affairs, and the ESG ExecutiveCommittee composed of corporate senior managementmembers manages ESG affairs, while each relevant functionaldepartment designates an ESG specialist as the basic unit forESG implementation, effectively promoting ESG integrationinto the corporate daily operational activities.
Strategy and SustainableDevelopment Committee
Responsible for comprehensively leading and supervising ESG work under the direction of the Board of DirectorsIdentify and assess major ESG-related impacts, risks and opportunities, and study corporate ESG governance andprovide decision-making consultation suggestions to ensure compliance with corporate needs and applicable laws ®ulationsGuide, check and approve corporate sustainable development policies, strategies and goals, and assess and monitorthe implementationReview the Environmental, Social and Governance (ESG) Report of the corporate
Board of Directors
Authorize the Strategy and Sustainable Development Committee to supervise our ESG affairs
ESG Executive Committee(Corporate SeniorManagement Members)
Based on the ESG decisions made by the Strategy (Investment & Development) Committee, formulate ESG workplans and related incentive assessment systems, and coordinate resources of various departmentsManage material issues to provide analysis and suggestions for discussion by the Strategy and SustainableDevelopment Committee so as to ensure supervision by the Board of DirectorsManage and guide the implementation of the ESG Working GroupCoordinate the preparation of the ESG reportOther ESG management-related matters
ESG Working Group(Key Members of RelevantFunctional Departments)
Organize communication with stakeholders such as the government, suppliers, and customers, and establish ESGinformation transmission channelsRene ESG-related management systems, and implement ESG work plansRegularly report work results to the ESG Executive CommitteePromote ESG capability-building work such as ESG knowledge publicity, implementation and trainingConstantly rene daily ESG materials retention in the departments to support ESG report preparation
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidate
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
The Company won the 2024 "Shanghai Stock Exchange ?
Gold Quality ? ESG Award"
The Company won the "Best ESG Rookie Award"
ESG Governance Structure and Responsibilities
ESGDecision-makingLevel
ESGManagementLevel
ESGExecutiveLevel
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
1213
Stakeholder CommunicationXiamen Xiangyu attaches great importance to communication and exchange with internal and external corporate stakeholders. Weconduct dialogues with stakeholders via various channels to deeply understand their demands and expectations, and we strive to gainthe trust and support of all parties to promote constant improvement of sustainable management work.
?Business expansion?Economic returns?Standardized governance?Sustainable development
Investors
?Market expansion to achieve business growth?Robust operations to ensure continuous profitability anddividends?High-standard governance to ensure true, accurate andcomplete information disclosure?Balanced development to contribute to social well-being
?Compliant operations?Pay taxes according to law
?Abide by commercial ethics
?Drive economic development
?Create jobs
Government andRegulatory Authorities
?Adhere to regulations and strictly follow industry bestpractices
?Contribute to society and actively fulll legal tax obligations?Moral leadership to adhere to high-standard commercialethics?Self-motivation to drive regional economic vitality
?Create jobs to assist local employment
?
Stable supply sources
?
Sales expansion
Customers
?
Ensure the continuity and reliability of the supply chain
?
Explore diversified markets and enhance distributioncapabilities
?Honest performance?Commercial ethics andtransparencyPartners
?Adhere to the contract spirit and fulll contracts legally
?
Advocate moral norms to commit to information transparency
?Rights and interests safeguard?Occupational health and safety?Training and promotion?Remuneration and welfareEmployees
?Safeguard employees’ legal rights and interests?Create a safe and healthy work environment?Provide a continuous learning and career growth platform
?Ensure fair remuneration and comprehensive welfare
?Community development
?Environmental protection
?Contribute to society
Community
?Actively participate in the community to promote localprosperity?Advocate green action to protect the Earth’s future
?Contribute corporate strength to achieve social commonprosperity
?Honest performance
?Open, fair, and impartialprocurement
Suppliers
?Adhere to the contract spirit and fulll contracts legally
?Transparent procurement and standardized bidding &procurement system
?Disclose corporate businessprogress
?Undertake environmental andsocial responsibilities
Public and Media
?Transparent communication to timely share businessprogress
?Actively take responsibilities to achieve synergy betweenenvironmental protection and social development
Key StakeholdersKey StakeholdersExpectations and DemandsExpectations and DemandsOur ResponseOur Response
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
1415
Analysis of Material Issues
To fully understand the key concerns of stakeholders and further integrate their demands and expectations into our own sustainabledevelopment management practices, the Company implements the principle of stakeholder participation to regularly conduct theidentication and analysis of material issues. During the reporting period, the Company, according to the Exchanger Guidance, optimizedand adjusted the identied material issues from the previous year, and we comprehensively formed this year’s dual importance issuematrix from two dimensions: "importance to corporate nance" and "importance to the economy, society, and environmental impact".
Understand corporate activities and business relationshipsUnderstand the external objective environmentUnderstand the main affected stakeholders
Understand the background of corporate activities and business relationships
Based on the issues identied by the Exchange Guideline, and referring to peer enterprises, rating standards, etc.,identify other potential material issuesIdentify the issue-rated impacts, risks and opportunities, and summarize to form corporate issue database
Identify ESG issue database
Identify the importance and nancial importance assessment results via questionnaires, interviews, etc.Integrate the assessment results to form a dual importance issue matrixEvaluation and ranking of issue importance
Confirm or adjust the importance issue results in combination with the opinions of the Strategy and SustainableDevelopment CommitteeDisclose the key points in the annual sustainability report in accordance with the requirements of the ExchangeGuideline
Conrmation and reporting of issue importance
GeneralVery Important
Very Important
Importance to Corporate Finance
Importance to the Economy, Society, and Environmental Impact
Environmental compliance management*
Rural revitalization and social contribution
Equal treatment for small and medium-sized enterprises
Lead industrydevelopment*
Corporate governance*
Due diligence*
Stakeholder communicationAnti-bribery, anti-corruption and anti-unfair competition
Product and service safety andquality*Supply chain safety
Innovation drive and digital development*Data security and customer privacy protection*
Green logistics
Energy utilization and water resource utilization
Pollutant emission and waste disposal
Labor management
Environmental compliancemanagement*Green logisticsEnergy utilization and waterresource utilizationPollutant emission and wastedisposal
Environmental Issues
Labor managementProduct and service safety andquality*Supply chain safetyInnovation drive and digitaldevelopment*Data security and customer privacyprotection*Rural revitalization and socialcontributionEqual treatment for small and medium-sized enterprisesLead industry development*
Social Issues
Corporate governance*Due diligence*Stakeholder communicationAnti-bribery, anti-corruption andanti-unfair competition
Governance Issues
Dual Importance Matrix
Analysis Process for the Material Issues
Note: The starred (*) issues are of dual importance.
"Chain" Connecting the World to Servethe Needs of the Country
Concept
Our Actions
Xiamen Xiangyu has always been committed to serving the national strategy tofulfill our corporate responsibilities, and we consolidate the safety foundation ofthe industrial and supply chains to ensure their smooth operation. Moreover, werely on the multimodal transport system to enhance the efficiency of resourcecirculation and energy utilization, and we provide precise services to empower thegrowth of small and medium-sized enterprises. Meanwhile, we deepen internationalcooperation under the Belt and Road Initiative to promote cross-border resourceexchange and regional coordinated development, contributing core power to thesmooth domestic and international dual circulations and promoting high-qualityeconomic development.
Ensure the Smooth Industrial and Supply ChainsDevelop Multimodal TransportationHelp Small and Medium-sized EnterprisesCo-build the Belt and Road
SpecialFocus
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidateGovernance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
1617
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidateGovernance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
1819
Ensure the Smooth Industrial and Supply Chains
Xiamen Xiangyu relies on its global resource integration capabilities and efcient logistics service system to fully ensure the stablesupply of materials in key sectors such as metal minerals, agricultural products, energy, chemicals and new energy, and we optimizethe industrial chain collaboration and strengthen resource allocation to provide solid support for the safety and stability of theindustrial chain and supply chain as well as the sustainable development of the economy.
Xiangyu Aluwin has deeply developed the aluminum industry chain constantly, promoting internationalization layout and theintegration of material trade and industrial trade, and it mainly explores the markets for recycled aluminum resources in SouthKorea and the Middle East as well as recycled aluminum and transshipment aluminum ingots in Southeast Asia. Relying on theXiangyu aluminum industry factory, Xiangyu Aluwin has built an internal new scrap aluminum self-circulation system to integrate theadvantages of overseas scrap aluminum procurement, and it supplies low-carbon aluminum products to downstream customersvia incoming material processing cooperation, achieving efcient recycling of scrap aluminum resources. In 2024, it won the AEO(Authorized Economic Operator) certicate issued by Xiamen Customs.
Starting from establishing a specialized planting service platform and constructing a cereal logistics transportation system, XiangyuAgricultural Products has established a "planting, harvesting, storage, transportation, sales, and processing" full-chain supply systemfor cereals, forming a service layout integrating seed & fertilizer supply, agricultural planting, cereal harvesting & storage, logisticstransportation, raw cereal supply, cereal processing, and agricultural nance. Xiangyu Agricultural Products has also created the"Xiangyu Speed" of "project approval, construction, production, and effectiveness realization in the same year", making signicantcontributions to achieving "national increase in production and farmers’ income growth", and it has become a reliable force forensuring national cereal security and driving regional economic development.Aluminum Industry Chain Services
Cereal Industry Chain Services
1819
Deeply develop the aluminum industry chain constantlyFocus on core products and mainstream manufacturing enterprises in the industry to deepen the "raw materials - finishedproducts" integrated supply chain cooperation of aluminum industrial chain, and expand direct supply channels of overseabauxite and petroleum coke renery and the transshipment market for aluminum ingots to build a recycled aluminum circulationsystem of "overseas scrap aluminum recycling - overseas recycled aluminum smelting - processing of materials supplied byChinese factories - nished products re-export", enhancing the global supply chain service capabilities.
Promote the integration of aluminum industry logistics resourcesRelying on the logistics and trade resources in the system, expand pure logistics services focusing on core aluminum plants,develop cooperation opportunities for customers in aluminum industry cluster to incubate the aluminum alliance logisticscompany, and integrate internal and external resources to form specialized aluminum industrial logistics capabilities, supportingthe efcient operation of the industrial chain.
Collaborative planting to produce high-quality cereals
At the planting end, the Company collaborates with production factor suppliers to provide farmers with seeds, pesticides,fertilizers, and technologies, avoiding problems such as asymmetric market information and backward technology equipment,which may lead to difculties in meeting market expectations regarding planting varieties and quality. Additionally, the Companyvigorously promotes the "order planting" business, and signs order contracts with small-scale operators of agricultural production,locking in cereal sources in advance to reduce the risk of cereal supply.
Integrated warehousing and transportation for precise distributionAt the sales end, based on the raw cereal sales markets in South China, East China, and Southwest China, the Company furtherexpands sales markets in North China regions such as Henan and Shandong. In 2024, the Company’s raw cereal sales exceeded9 million tons, establishing a reasonable and well-structured sales network covering both the north and the south. The Companyhas established seven modern cereal storage and logistics centers in major cereal-producing areas in Heilongjiang Province,including Fujin, Bei’an, Yi’an, Suihua, Wudalianchi, Nenjiang, and Nehe. It has built a total storage capacity of 13 million tons atthe cereal source base established in Heilongjiang, contributing to the high-quality development of the cereal industry and theconsolidation of the national food security defense line.
Ensure purchase of high-quality cereals at a high priceAt the purchasing end, the Company collaborates with the government, Dalian Commodity Exchange, and insurance companies toestablish a system of "ensuring purchase of high-quality cereals at a high price" to reduce potential risks from natural disasters,ensuring both farmers’ income and corporate cereal purchase quantity.
? Help farmers reduce uctuations in planting income and promptly obtain the latest market information.
?Attach great importance to protecting the interests of farmers. Adopt an efcient and automated purchasing model, adheringto the principles of "fairness, justice, and openness" to strictly prohibit behaviors such as taking bribes, accepting gifts, beingarbitrary, and demanding, and provide three meals, drinking water, and rest areas for farmers during the purchasing period tomaintain close contact with farmers.
? Help production factor suppliers shorten the middle channels and links, reducing the credit risks in dealing with farmers.
?Reach consensus with local governments of Fujin, Bei’an and Suihua where the projects are located, and conduct targetedinvestment promotion along the industrial chain, enabling manufacturers with synergistic effects to form an organic industrialentity via the park model.
In terms of logistics, the Company has constructed a cereal logistics transportation system, establishing a "transporting cerealfrom the north to the south" intermodal transportation channel integrating land, railway and sea, constantly deepening "logisticsand trade linkage". The Company stores over 4 million tons of national reserve cereals annually, reaching up to 15 million tons atpeak periods, covering multiple varieties such as corn and rice, and it has smoothly passed all national reserve cereal inspectionsat a higher standard, ensuring that national cereals can be transported and used as needed.
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidateGovernance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
20212021
Focusing on the lithium battery (energy storage), photovoltaic and windpower new energy industries, Xiangyu New Energy concentrates on thesupply chain and comprehensive energy management in the new energyfield, and it connects major domestic and overseas mining companies,smelters, midstream processing plants, and downstream end customersin the industry, providing a full-process comprehensive service solutionof supply chain. It further deeply integrates the industrial chain, supplychain and value chain, and it is committed to becoming a world-classcomprehensive operator of the new energy supply chain.
In the logistics of the photovoltaic industry, there are problems such asunstable transportation routes, high value of goods, unstable quantityof goods, difculty in matching transportation resources across regions,and lagging tracking. The Company relies on the Xiangyu SmartTransportation Network Freight Platform to integrate and match supplyand vehicle sources, and optimize rail-water intermodal transportationand warehousing logistics services, solving the problem of mismatchbetween transportation capacity and demand. We also improve deliverytimeliness via full-process visual tracking to ensure the progress ofcustomer engineering construction. As of the end of the reportingperiod, the Company has served leading new energy enterprisessuch as China Energy Engineering Corporation Limited, China PowerConstruction Corporation, and Longi, and has been awarded the GradeA supplier logistics performance of Longi many times.
According to data from the United States Geological Survey(USGS), in 2024, China’s lithium reserves only accountedfor 6% of the global reserves, but the production of powerbatteries was 70% of the global production, so the dependenceon lithium resource import was high, and domestic lithiumcarbonate smelters generally faced raw material shortages. In2024, the Company introduced overseas high-quality lithiummines (with an operating volume of over 500,000 tons anda market share of 8%) to ensure the supply of raw materialsfor domestic smelters, and operated lithium carbonate over45,000 tons (with a market share of approximately 5%) toeffectively ensure the production of material factories andbattery factories, contributing to the stable operation of newenergy industry chain.
During the process of developing the multimodal logistics system, the Company has achieved a breakthrough in the transportationstructure of "railway-water intermodal, short-distance transportation of road", providing customers with high-quality, full-process, andcustomized logistics solutions for staple commodities, and has also successfully created several green, low-carbon, and efcientpremium lines such as "inter-provincial circulation of aluminum product", "transporting cereals from north to south", "transportingcoal from west to east", and "transporting coal from north to south", signicantly reducing the comprehensive energy consumptionand pollutant emissions in the logistics link.
New Energy Industry Chain Services
Develop Multimodal TransportationXiamen Xiangyu actively responds to the national call for "road-to-railway, bulk-to-container, and land-to-water", and integratesthe "Logistics Ground Network" and "Digital Intelligence Sky Network" to create a multimodal transportation model with corporatecharacteristics of "logistics leadership + intelligent empowerment + high-level collaboration", which optimizes resource allocationand constructs green logistics channels, forming a 3D transportation network covering major economic regions around the world.
The Multimodal Transportation Logistics System of "Road, Railway, Water, and Warehouse"
Relying on Xiangdao Logistics node layout inthe central and western regions, the Companytransports western coal from Shanxi, Shaanxi,and Inner Mongolia to regions such asYunnan, Guizhou, Sichuan, Shandong, Hunan,and Jiangxi via railways, establishing majortransportation channels such as "TransportingCoal from North to South" and "TransportingCoal from West to East".
The energy consumption and pollutant emissions of railwaytransportation are only 15% and 8% of those in roadtransportation, respectively. The Company transports coal in a"road-to-railway" manner and sprays dust suppressant on thesurface of the coal to form a protective lm before the traindeparts, controlling dust dispersion and dust pollution.
Actively arranging and connecting keylogistics nodes such as northern productionareas, port clusters, and southern salesareas, the Company has constructed themajor channel for "Transporting Cereals fromNorth to South", creating a corporate specicmultimodal transportation system of road,railway, water and warehouse.
Compared with railway and road transportation, watertransportation has lower energy consumption and pollutantemissions. The transportation mode of being "dominatedby railway and water transportation, supplemented by roadtransportation", the proportion of road transportation distancehas been reduced to less than 10% of the total distance,which lowers transportation costs and energy consumption,achieving cost reduction and efciency enhancement in cerealtransportation.
Relying on its own aluminum supply chainoperating volume advantages, the Companyhas established "Xinjiang - Henan", "Shandong- Inner Mongolia" and other major channelsfor the circulation of alumina and electrolyticaluminum.
Relying on the railway node advantages of Xiangdao Logistics,the Company has completed the transportation structureadjustments of "road-to-railway" and "bulk-to-container", and thetransportation by large trucks has been replaced with railwaycontainer shipments, achieving the quality improvement andefciency enhancement of aluminum product transportation aswell as energy conservation and emission reduction.
Major channel for"Inter-ProvincialCirculation ofAluminum Product"
Channel for"TransportingCereals from Northto South"
Channels for"Transporting Coalfrom West to East"and "TransportingCoal from North toSouth"
Line NameChannel Construction
Measures for Pollution Reductionand Energy Conservation
Approximately 1,000 self-owned transportation vehicles, with a cumulative integration of over 160,000 socialvehicles, achieving a transportation volume of over 23 million tons in the reporting period.
Road
12 railway freight yards/stations (10 self-owned and 2 entrusted), covering staple commodity distribution hubsin the central and western regions, with 87 dedicated lines of railway, approximately 3,800,000 m
containeryards and warehouses, and over 30,000 self-owned containers, with an annual transportation capacity of over57 million tons.Railway
3 domestic self-owned dual-purpose shipping vessels, with a cumulative integration of approximately 3,000social shipping vessels, forming a combined "self-owned + cooperative" water transportation capacityconguration. 2 overseas self-owned shipping vessels, and continuous integration of international distributionshipping vessel resources, creating international dry bulk cargo marine transportation and internationalcontainer marine transportation logistics capabilities.Watertranspor-
tation
Domestic establishment of 5 major cereal purchase platforms, with self-owned and cooperative storagecapacity of approximately 12 million tons, equipped with 20 dedicated lines of railway; operation of 69 self-owned and leased management warehouses, with an area of over 1,600,000 m
; 8 storage yards, with an areaof over 500,000 m
; obtained 20 futures delivery qualication licenses, with a storage capacity of approximately1 million tons; overseas storage nodes are normally maintained at 50, and forward-looking strategic layouts ofover 150 are in place.
Warehou-
sing
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidateGovernance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
22232223
Help Small and Medium-sized EnterprisesXiamen Xiangyu has always been committed to empowering the development of small and medium-sized enterprises. We haveinnovated the digital technologies and financial services of supply chain to construct an efficient and transparent trust bridgebetween small & medium-sized enterprises and financial institutions, which helps these enterprises revitalize their assets andaccelerate turnover, injecting powerful momentum into their high-quality development.
The Company relies on technologies such as block chain, Internet of Things, big data, and articial intelligence to create a digitalwarehouse and in-transit tracking system, and to construct a digital supply chain service product matrix called "Yu Lian Tong", whichenables corporate inventory for sale to become effective collateral for nancing loans that are "visible, controllable, and marketable",thereby building a "datamation" trust bridge between customers and financial institutions and efficiently solving the financingdifculties of small and medium-sized enterprises. Compared to other non-bank nancing channels, it can reduce nancing costsfor small and medium-sized enterprise customers by 10% to 40%, and it can empower the risk control management of the banksvia capabilities such as "controlling goods, understanding industries, traceability, and marketability". Meanwhile, "Yu Lian Tong" canachieve full-process online operations. Enterprises can initiate nancing requests with a single click, and complete the full processfrom collateral initiation to bank loan disbursement within 5 to 10 minutes, thereby expanding nancing channels for the industrialsector, improving nancing efciency, and reducing nancing costs.
"Yu Lian Tong" has a rich product matrix and is capable of conducting diverse collateral financing businesses. Moreover, itcomprehensively considers the corporate financing demand and bank load disbursement requirements to design flexible andcustomized nancing solution, achieving on-demand nancing, immediate borrowing and repayment, and maximization of nancingbenets, and it has achieved cooperation with over ten nancial institutions. As of the end of 2024, "Yu Lian Tong" has cumulativelyobtained special credit lines of CNY 13.7 billion and assisted customers in completing approximately CNY 7.4 billion in nancing.
"Yu Lian Tong" Digital Supply Chain Service Platform
Goods Management, Cargo Rights Control, Credit Empowerment ofElectronic Warehouse Receipts
Price Mark-to-market, Goods Value
Warning
Risk Handling
Core Capabilities
"Yu Lian Tong" Digital Supply Chain Service Platform
Goods SupervisionRisk Management
Service Fee
Digital Asset Certicate(Electronic Warehouse
Receipts, etc.)
Admission
Funding PartyCustomer Party
"Yu Lian Tong" Digital Supply Chain Service Platform
Yu Cang Rong
Customers applyfor nancing loandisbursement fromnancial institutionsbased on the goodsstored in corporatewarehouse.
Yu Cai RongYu Cai RongYu Cai Rong
Customers apply forcollateral nancing frombanks based on thepurchase orders signedin their trade with theCompany.
Customers apply forcollateral nancing frombanks based on thein-transit spot goodstransported by theCompany.
Customers apply fornancing from banksbased on the transactiondata with the Company.
"Yu Lian Tong" Product Matrix
Sustainable Contributions of "Yu Lian Tong"
Responding to national policies, it collaborates with nancial institutions to create nancialproducts of digital supply chain, reducing the difculties of nancing for small and medium-sized enterprises, including difculties in obtaining nancing, paying high interest rates,and experiencing slow nancing processes. It empowers industries and provides excellentsupport for the development of industrial clusters.In terms of socialbenets:
In terms ofeconomicbenets:
In terms ofecologicalbenets:
While solving the nancing difculties of enterprises at the upstream and downstream ofthe industrial chain, it also revitalizes the corporate funds occupied by inventory, improvingcorporate operation efciency, enhancing corporate market competitiveness, and promotingsustainable development of the corporate.The full-process online operation and the interconnection of data with nancial institutionsenable enterprises at the upstream and downstream of the industrial chain to efcientlycomplete the process from collateral/nancing initiation to the loan disbursement bynancial institutions, and the full process is paperless, signicantly improving the corporateoperation efciency and achieving green and ecological operation.
Yu Cang Rong(WarehouseFinancing)
Yu Cai Rong(ProcurementFinancing)
Yu Tu Rong(In-TransitFinancing)
Yu ShuRong (DataFinancing)
A Typical Case ofDigital Transformation
of Trade in Xiamen
"Yu Lian Tong" was selected as
A Typical Case of High-quality Development
of Modern Circulation Enterprises withDigital, Smart and Green Innovation
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidateGovernance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
24252425
Co-build the Belt and RoadIn recent years, Xiamen Xiangyu has taken the countries and regions along "Belt and Road" as the strategic layout direction toactively explore the international market, and it has cooperative merchants in over 110 countries. It focuses on linking overseashigh-quality procurement and sales channels, and exploring the overseas supply chain demands of large Chinese-fundedenterprises, and it facilitates the dual circulation of domestic and international markets via a sound international commodity servicenetwork and international logistics capability system.
CaseXiangyu New Energy Helps the Construction of Photovoltaic Power Stations in Pakistan
Xiangyu New Energy has been constantly promoting the export of photovoltaic products to Pakistan, helping the developmentof local photovoltaic industry. As Pakistan lacks the ability to independently produce photovoltaic modules, imports havebecome its main source. In response to the call of "go global" strategy, Xiangyu New Energy has provided integrated supplychain solutions for photovoltaic modules, inverters, cables, and circuit breakers to Pakistani customers, assisting in theconstruction of photovoltaic power stations in Pakistan to meet the local growing energy demands. By introducing advancedChinese photovoltaic technologies to Pakistan, Xiangyu New Energy has made outstanding contributions to achieving theglobal "carbon peaking and carbon neutrality" goals and promoting green and low-carbon development.
CaseThe China-Europe Railway Express Helps Xiamen Build an International Supply Chain HubIn June 2024, Xiangyu Elink (Xiamen Xiangyu’s affiliated company) successfully launched its first China-Europe RailwayExpress (Xiamen) after obtaining the qualification of the railway express operation platform company in Xiamen City.Compared to international shipping, this mode can shorten the transportation time by 10 to 20 days. Xiangyu Elink adoptsthe model of "rapid custom clearance of railway" to achieve intelligent supervision, one-stop inspection and release, anddigital customs clearance, and the custom clearance time can be saved by 24 hours, effectively ensuring the efficientpassage of the China-Europe Railway Express at the departure ports. Relying on a railway express network covering morethan 20 countries in Europe, Central Asia, and Southeast Asia and the scale advantage of an annual shipment volume ofnearly 40,000 TEUs, it integrates multimodal transport resources such as "road, railway, water and warehouse" to providecustomized container services and "door-to-door" comprehensive logistics solutions for enterprises along the "Belt andRoad", helping Xiamen strengthen its function as an international supply chain node and promoting the efcient circulationof regional goods and factors.
In recent years, the Company has constantly advanced the construction of overseas platforms and accelerated internationalizationlayout. As of now, it has established platform nodes in major intercontinental regions such as North America, Asia, Oceania, andAfrica, serving as "service stations" for overseas business development, and leveraging regional synergy.
The Company has established core logistics transportation channels such as China-Southeast Asia, China-Europe/China-Central Asiainternational trains, and China-Africa. Meanwhile, it is exploring local logistics businesses such as overseas warehouses and customsclearance in Vietnam, Indonesia, Thailand, and South Africa. In 2024, it expanded overseas logistics suppliers by over 100, constantlyenhancing the international logistics capabilities in regions such as Southeast Asia, Africa, and the Eurasian Continental Bridge.
Build an International Commodity Service Network
Construct an International Logistics Capability System
Relying on abundant coal and nickel ore resources and after deep development of integrated service projects for stainlesssteel smelting, it directly connects local mine resources for integrated operation of the industrial chain and supply chain.Combining the industrial transfer in Southeast Asia, it extends overseas downstream in plastic chemical products, aluminumingots, aluminum rods, black steel, and cassava products, and actively expands logistics resources.Focusing on oil product operations, it actively serves domestic reneries and local ship fueling businesses. Meanwhile, itjointly establishes project subsidiaries to accelerate the establishment of overseas sales networks for new energy products.
Investing in over 6,000 hectares of forest land resources, it builds a comprehensive service platform for forest product supplychain.Deeply develop the lithium product supply chain operation.
Leveraging its advantages in nance, taxation, and talent, it helps international trade of corporate constantly develop andintroduce high-end international talents.
Indonesia platform
Vietnam platform
Singapore platform
New Zealand platform
Central purchasing center in Nigeria, Africa
China Hong Kong platform
China-Indonesia channel: The China-Indonesia logistics channel has a transportation volume of approximately 26 million
tons, with a year-on-year growth of over 50%.
International dry bulk channel: Deep development of products such as coal and petroleum coke, with a 70% year-on-year
increase in 2024 in maritime business volume.China-Vietnam and China-Thailand channels: The China-Vietnam and China-Thailand logistics channels have atransportation volume of 36,000 TEUs, with a year-on-year growth of over 20%, and it extends cross-border logisticsbusiness around Vietnam and Thailand, expanding the intermodal logistics network.In 2024, it was approved as the China-Europe Railway Express (Xiamen) platform company qualification, and it deeplydeveloped the domestic and overseas point locations constantly to build a "carrying pole" business around both ends basedon the upstream and downstream industrial clusters. In addition, while maintaining the advantages of the entire railway lineof international trains, it continued to expand full-channel transportation methods such as sea-rail intermodal transportationand truck-air transportation and also explored new channels such as China-Kyrgyzstan-Uzbekistan and across the CaspianSea.Based on the three main premium routes in Eastern and Southern Africa, it further consolidates the multi-modaltransportation advantage. In 2024, through a "container + bulk ship" combined transportation solution, it providedpersonalized services for Chinese mining enterprises, offering full-process comprehensive services of supply chain for oreenterprises such as bauxite, lithium concentrate, chromium ore, and copper ore, with an annual logistics service volume ofover 3 million tons, effectively ensuring the security and stability of the import supply chain of metal minerals.
Southeast Asia international logistics channel
Asia-Europe international logistics channel
Africa international logistics channel?
?
?
?
?
?
?
?
?
?
?
Consolidate Governance to Jointly Buildthe Foundation for Development
Concept
Our Actions
Xiamen Xiangyu is committed to establishing and rening corporategovernance structure, aiming to enhance internal management andsupervision mechanisms to improve the scienticity and transparency of thedecision-making process. During the interactions with investors, the Companyactively promotes the maintenance and optimization of communicationchannels, striving to build a mutually trusting and benecial relationship.The Company has a zero-tolerance attitude towards corrupt behaviors andresolutely opposes any form of improper conduct.
Standardized Operations to Achieve Efcient and Steady GovernanceRisk Control Orientation to Securely Adhere to the Compliance Bottom LineHonest Business Operation to Adhere to Commercial Ethics
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidate Governanceto Jointly Buildthe Foundation forDevelopment
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
2627
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidateGovernance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
2829
Standardized Operations to Achieve Efcient and Steady GovernanceXiamen Xiangyu has always maintained a high sense of responsibility and mission, dedicated to establishing a scientic, complete, andefcient corporate governance structure. The Company constantly strengthens its internal management and supervision mechanismsto optimize the decision-making process, and enhances the scienticity and transparency of decisions to effectively safeguard the legalrights and interests of shareholders, laying a solid foundation for the Company’s long-term stable growth. Meanwhile, the Companyactively expands communication channels with investors and constantly optimizes investor relations management, enhancing markettrust and condence.
Operation of the Three Boards
Corporate Organizational Structure
Xiamen Xiangyu actively creates a listed companygovernance system that meets the requirementsof modern enterprise systems in strict accordancewith the Company Law, Securities Law, Codeof Corporate Governance for Listed Companiesand other applicable laws & regulations. TheCompany constantly optimizes the governancestructure and institutional system, and enhancesinternal management mechanisms to promotethe standardization and renement of corporategovernance, while striving to enhance governanceefciency, ensuring the stable corporate operation.
The Company has established a managementsystem with the General Meeting of Shareholders,the Board of Directors, the Board of Supervisors,and the management team as the main body. TheBoard of Directors has three special committees:
the Strategy and Sustainable DevelopmentCommittee, the Audit Committee, and theRemuneration and Appraisal Committee, aiming toprovide scientic and professional advice for thedecision-making of the Board of Directors.The Company has clearly dened theresponsibilities and authorities of each level indecision-making, supervision, and execution,forming a sound governance structure, and strictlyfollows the applicable regulations to ensure thestandardization of the operations of the ThreeBoards, effectively safeguarding the rights andinterests of investors and other stakeholders.
Corporate Governance
Digital TransformationCommitteeInvestment ReviewCommitteeRisk Management Committee
Board of Directors
Secretary of Board ofDirectors
Board of Supervisors
Audit CommitteeStrategy and SustainableDevelopment Committee
Remuneration and Appraisal
Committee
StrategicInvestment
Center
LogisticsManagement
Center
OperationDevelopment
Center
Risk ManagementCenterInformation TechnologyCenter
AdministrativeCenter
Finance Center
General Manager(Executive Team)
Party Committee
Senior Management QualificationAppraisal CommitteeWork Safety CommitteeBudget Control Committee
GeneralMeeting ofShareholders
Disciplinary Inspection Commission
Digital Transformation Ofce
Application ManagementDepartment
Data Application Department
Architecture ManagementDepartment
General Manager’ s Ofce
Financial Management Department
Fund DepartmentAdministrative Department
Accounting Department
Securities Affairs Department
Investment ManagementDepartment
Construction ManagementDepartment
Risk Control and ComplianceDepartmentHuman Resources DepartmentIndustry Research DepartmentLogistics Management Department
Legal Affairs DepartmentInvestment DevelopmentDepartment
Supply Chain DevelopmentDepartmentLogistics Audit Department
Audit DepartmentSafety Supervision Department
Internationalization DevelopmentDepartmentOperation Management Department
Party Committee Ofce
Discipline Inspection and SupervisionOfce
Note:The Company renamed the "Board Strategy (Investment and Development) Committee"
to the "Board Strategy and Sustainable Development Committee" in June 2025.
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidateGovernance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
3031
Independence and Diversity of The Board of Directors
Remuneration Management of the Board of Directors
The Company actively promotes the independence and diversity of its members in Board of Directors and senior management.The members possess extensive industry experience and professional capabilities in nance and law to ensure the comprehensivegovernance and insight of the Board of Directors, so they can make reasonable decisions to enhance risk response capabilities andprotect the interests of investors, improving the professionalism of corporate governance.
According to development strategy, the Company has established the Remuneration and Appraisal Committee to formulate theremuneration policies and programs for directors and senior management personnel, and to provide advice to the Board of Directors.The Company’s remuneration policies take into account the factors including corporate business operation goals, market remunerationlevels, and individual performance, ensuring that the remuneration is in line with corporate performance and individual contributions.The remuneration for senior management adopts a salary structure of "basic annual salary + long-term incentives" to enhance the long-term sense of responsibility and belonging of the management team, promoting the long-term and stable corporate development.
NamePosition
Professional Knowledge and SkillsPrimary Experience
GenderAgeIndustry
Comprehensivemanagement
FinanceLawIndustryFinanceLawWu JieChairman???Male44Qi Weidong
Deputy Chairman,General Manager
?????Male59Deng QidongDirector???Male55
Lin JunjieDirector???Male52
Wang JianliDirector?????Female53
Cai ShengDirector?????Male43
Xue Zuyun
Independent
Director
?????Male62
Liu Bin
Independent
Director
????Male63
Liao Yixin
Independent
Director
????Male68
Diversied Composition of the Board of Directors
The Company’s controlling shareholders adhere to the code of conduct, and legallyexercise the rights of the investor via the General Meeting of Shareholders. Theyparticipate in and supervise corporate decision-making by appointing directorsand supervisors, and they do not interfere with legal decision-making and specicproduction & operation activities of the corporate. The Company and the controllingshareholders are independent in terms of personnel, assets, nance, institutionsand business, and corporate Board of Directors, Board of Supervisors and internalfunctional departments operate independently.
General Meeting of Shareholders
The corporate Board of Directors protects the legal rights and interests of theCompany and all shareholders in strict accordance with the provisions of theArticles of Association and the Rules of Procedure for the Board of Directors. TheBoard of Directors has established the Remuneration and Appraisal Committee,the Audit Committee and the Strategy and Sustainable Development Committee,which provide consultation and suggestions for the decision-making of Board ofDirectors.
Board of Directors
The corporate Board of Supervisors supervises the convening procedures/resolution matters of General Meeting of Shareholders and Board of Directors, theimplementation of the resolutions of the General Meeting of Shareholders by theBoard of Directors, the nancial situation of the corporate, and the performance ofduties by directors and senior management personnel in strict accordance with theprovisions of the Articles of Association and the Rules of Procedure for the Boardof Supervisors.
Board of Supervisors
During the reporting period,the Company held a total of General Meetings of Shareholders,meetings of the Board of Directors and meetings of the Board ofSupervisors.
Note: Cai Sheng has been appointed as a director of the Company since March 28, 2025.
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidateGovernance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
3233
The Company attaches great importance to investor relations management and has formulated the Investor Relations ManagementSystem, establishing an investor relations management mechanism to clarify the basic principles, main communication matters,communication methods, information disclosure channels, etc., and has constantly refined the investor relations managementmechanism to safeguard the basic rights and interests of the investors. In addition, the Company also conducts a variety of investoractivities to enhance communication with investors and potential investors, improving investors’ understanding and recognition of theCompany.
Investor Relations
Information Disclosure
Investor Communication
The Company discloses major corporate information in accordance with laws, regulations, departmental rules, normative documentsof the Exchange and Articles of Association. It has formulated the Management System for Information Disclosure Affairs to improvecorporate information disclosure management and quality, and all disclosed information is true, accurate and complete, which effectivelysafeguards the right to know of all shareholders (especially minority shareholders), and ensures that corporate shareholders can equallyobtain major corporate information. The Company also constantly enhances the management on insiders, and orderly organizes theregistration of insiders, effectively preventing insider trading to protect the legal rights and interests of investors.
The Company adheres to the fundamental principles of "compliance, equality, initiative, and honesty and trustworthiness", and conductsinvestor relations management via multiple channels, platforms, and methods. Investors can obtain the latest information about theCompany via various channels such as announcement documents, ofcial website of the corporate, new media platforms, ShanghaiStock Exchange e-Interactive, investor hotline, fax, email, and investor education base, and the investors can also utilize the networkinfrastructure platforms of www.investor.org.cn and stock exchanges, securities registration and settlement institutions to obtaincorporate information via General Meeting of Shareholders, investor briefings, roadshows, analyst meetings, receiving visitors, anddiscussion exchanges.
During the reporting period,the Company disclosedreports, including regularreports and interimannouncements.
During the reporting period, the Company answered over investor calls and handled over investor relationshipemails. It responded to investor questions on the Shanghai Stock Exchange e-Interactive platform, with a response rateof .The Company organized online performance briengs, participated in online collective reception day in the Xiamen area,held special telephone meetings, and conducted online exchanges with over representatives from institutions.The Company has participated in more than strategy meetings organized by major sellers, and had face-to-faceexchanges with over mainstream investment institutions.The Company has received over institutional surveys (in Xiamen, in Shanghai or online), with a total of overinstitutions received.
The Company has always placed the protection of shareholders' interests in a prominent position, and it is committed toensuring that shareholders can obtain corporate information promptly and accurately to participate in corporate decision-making through measures such as enhancing internal control, optimizing corporate governance structure, and enhancingtransparency. The Company strictly complies with applicable laws and regulations, and implements scientific and reasonableprofit distribution policies to safeguard the legal rights and interests of shareholders and their investment returns. Meanwhile,the Company pays close attention to communication and interaction with shareholders, and actively listens to their opinionsand suggestions, in order to achieve the common development of the Company and shareholders and maximize benefits.
Holding the concept of sharing development achievements with shareholders, the Company has implemented an active and stable cashdividend policy. In the past ve years, the proportion of cash dividends to the net prot attributable to shareholders of the listed company(after deducting interest on perpetual bond) in the current year has been remained above 50%, and the cumulative dividend amountsince the reorganization and listing in 2011 has exceeded CNY 5.1 billion.
Protect Shareholders' Interests
In the regular reports, the Company actively discloses major information that canfully reect business progress, competitive advantages, industry trends, industrialpolicies, etc., to enhance investors' understanding and recognition of corporateinvestment value; and it strives to express in a simple and understandable manneralong with abundant graphics and text to constantly improve the disclosure qualityof regular reports.For many years, the Company has persisted in publishing letters to shareholdersin the annual report to facilitate investors' reading and understanding of corporateoperating conditions and development strategies.Since the third quarter report of 2022, English versions of regular reports have beendisclosed, and an English website has been set up to establish an English investorrelations column, facilitating international investors' understanding of corporateoperating conditions.
Diverse Forms of Information Disclosure
The Company Won the 8th Best Capital Market Communication Award
100150
4150200
96.77%
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidateGovernance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
3435
Xiamen Xiangyu conducts various tasks related to optimizing the internal control manual, rening basic management, and strengtheningcompliance management around the "one body, two wings, three impetuses" framework, constantly consolidating the risk managementsystem.
The corporate Risk Management Committee is responsible for organizing comprehensive risk management of the corporate, determiningthe overall goals of risk management, identifying major risks and key control measures, and establishing a sound risk managementsystem.
Internal Control of Risk
Related Party Transactions
Risk Management System
Avoidance of Interest Conicts
To regulate related party transaction behaviors of the corporate, the Company has formulated the Management System for RelatedParty Transactions to clearly stipulate the matters such as the denition, decision-making, disclosure, and punishment of related partytransactions, regulating the relevant responsibilities and obligations of corporate directors, supervisors, senior management personnel,and shareholders. Moreover, the Company fullls the relevant procedures for related party transactions in strict accordance with theManagement System for Related Party Transactions. The related directors and related shareholders are required to avoid voting in theconsideration procedures of Board of Directors and General Meeting of Shareholders, and the actual implementation of daily relatedparty transactions is classied, summarized and disclosed in the annual report and semi-annual report. In addition, the Company alsostipulates the related party transaction matters in the Management System for Fund Raise to ensure that related party transactions arevoluntary, equal, fair, open, legal, and reasonable, which are in line with the interests of the Company and shareholders.
Holding the business philosophy of "risk first, profit second, scale third" and around the overall risk management goal of "beingcontrollable" and "bearable", the Company establishes a risk management system with internal control construction as the body, basicmanagement cycle and compliance management cycle as the two wings, and risk control digitalization, risk control empowerment, andrisk control organization capability construction as the impetus. That is, the "one body, two wings, three impetuses" risk managementsystem.
The Company requires directors, supervisors, and senior management personnel to fulll the duty of loyalty in strict accordance withthe provisions of the Articles of Association. Without the consent of the General Meeting of Shareholders, they are not allowed to takeadvantage of their positions to seek business opportunities of the Company for themselves or others, or engage in similar businessactivities. Meanwhile, the Company has formulated the Work System for Independent Directors, requiring independent directors tosupervise potential major interest conict matters to ensure that the decisions made by the Board of Directors are in line with the overallcorporate interests and protect the rights and interests of minority shareholders. During the reporting period, the Company effectivelyimplemented the requirements for avoiding interest conicts via improving mechanisms, maintaining the transparency and fairness ofcorporate governance.
Risk Control Orientation to Securely Adhere to the ComplianceBottom LineAs a leading enterprise in staple commodity supply chain services in China, Xiamen Xiangyu rmly places compliance at the dominantposition of risk management, and guides its business activities with the concept of "risk first". The Company actively respondsto changes in the economic environment and regulatory policies to constantly refine its risk management system, strengtheningcompliance management and enhancing risk control measures, and innovates on the basis of compliance to ensure stable developmentin a complex and volatile market. These practices not only safeguard the safe operation of corporate assets, but also enhance the risk-resistance capabilities of the industrial chain and supply chain. Each operating entity of the Company maintains a sense of reverencefor compliance management, and strictly follows the standards for operation to promote corporate long-term sustainable development,creating greater value for shareholders and society.Integrate the front and back ends ofrisk control via projects
Mainly responsible forinspection, evaluation andauditing
Leader in Charge of RiskControl
Risk ManagementCommittee
Risk Governance Organization Structure
Risk listBasic management cycle
Risk controldigitalization
Risk controlempowermentRisk control organizationcapacity construction
Compliance system cycle
Internalcontrolassessment
Internal controleffectiveness evaluation
Internal controlmanualInternal controlconstruction
cycle
?Standard compilation?Operation manual?Release of compilationmanual
?Publicity, implementationand teaching assistance ofcompilation manual?Qualication-relatedexaminations
?Regular inspection andrectication
?Identication andassessment of compliancerisks?Planning to addresscompliance risks andimplement
Goals
?Implement planning andcompliance risk control
?Performance evaluationand compliance report
?Manage non-complianceand constantly improve
"One Body, Two Wings, Three Impetuses" Risk Management System
Risk Control Liaison Person
Full-time Positions forClass A/B OperatingEntities
Part-time Positionsfor Class C OperatingEntities
Mainly responsible forthe construction of riskcontrol system, risk controlcollaboration, improvementof risk control organizationcapacities, and construction of
risk control digitalization.
Risk Governance CenterRisk Compliance
Department
Legal AffairsDepartment
Audit Department
Main responsibledepartment for riskcontrol (functional risk
control partner)
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidateGovernance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
3637
Risk Management ProcessThe Company implements risk list management for major risks. Each operating entity and each functional department of riskmanagement will, around the risk list, constantly collect risk management information, conduct risk assessment, formulate riskmanagement strategies, propose & implement risk management solutions, and supervise & improve risk management. The Companymainly assesses risk levels based on two dimensions: probability and impact. The probability assessment standard is mainly determinedbased on the occurrence frequency and duration of similar events in the past; and in the assessment standard for impact, the impactdegree of the risk event on nancial situation, reputation, employees, and market, and others of the corporate is mainly considered.
Primary RiskKey Secondary Risk
Price riskPolicy risk
Fund liquidity (cash ow) risk
Foreign exchange riskAccounting and nancial reporting risk
-
Tax compliance riskTrade control and sanctions riskHealth, safety and environmental risk
Customs affair compliance riskAnti-monopoly compliance risk
Listing regulation compliance riskEngineering construction compliance riskOversea operation compliance riskDangerous chemicals operation compliance
riskCommercial substantial risk
Merchant credit riskGoods ownership riskBasic management riskProfessional ethics riskInvestment decision risk
"Four-new" business risk
Information system risk
Team building riskOrganizational capacity riskCorporate reputation and brand risk
Compliance Risk
Market Risk
Operational Risk
Financial RiskStrategic Risk
Governance GoalsGovernance MeasuresRisk Types
Pre-event: According to the relevant management requirements of
the state and the municipal state-owned assets supervision andadministration commission, draft the General Rules for SupplyChain Management to clearly dene the negative list for businessoperations and management requirements.Mid-event: Invite accounting rms and external experts to conduct
special training, and guide each operating entity to enhance theunderstanding of business substance so as to avoid cognitive risks.
Post-event: The Audit Department organizes special screenings,
focusing on the rationality and compliance of business as well asthe rationality of business substance.
Comply withexternal regulatoryrequirements, andstrictly prohibitconducting non-compliant business.
Pre-even: Establish a sound management system to clarify the
admission scoring system for logistics sub-suppliers, warehouseinspection rules, etc., and establish a ghtable logistics team.Mid-event: First, use digital tools to achieve standardized,visualized, and rened management of logistics suppliers toimprove the accuracy of logistics tracking and the intelligentearly warning of risk; second, promote the "unxed time, unxedpost, unxed person" warehouse inspection mechanism; third,achieve full insurance coverage to lower the impact degree ofuncontrollable risks.Post-event: First, conduct regular return visit for logistics sub-
suppliers to promptly identify deciencies and adjust ratings;second, promote the upward transmission of abnormal informationand conduct evaluations.
Improve themanagementability of logisticssub-suppliersand leveragedigital warehousemanagement toachieve effectivecontrol of goodsownership.
Pre-event: Clearly dene the upper limit of authorization line and
adjustment standards for each operating entity, and combine publicopinion, performance, and production & operation conditions toconduct front-end credit granting and cooperation scale control.
Mid-event: First, establish a regular dynamic monitoring mechanismfor merchant credit risk to track the progress on implementationof risk matters, to assess the impact of risk matters on theperformance ability of merchant, to promptly take necessary riskprevention measures and urge the implementation of measures.Second, conduct regular return visit for credit-granted merchants,and perform on-site visits for blacklisted, overdue, and abnormalmerchants.Post-event: First, implement black list and gray list managementto clearly prohibit admission for abnormal cooperative merchants.Second, comprehensively conduct post-evaluation on risk business.Third, perform irregular reviews of the entire year's merchantsituation to propose optimization opinions for managementdirection.
Conductconcentrationdegree analysis,stress testing,etc. to focus onpromoting thematching betweenhierarchicalmanagementand authorizationmechanism, helpingeach operatingentity control themerchant creditrisk within the"controllable andbearable" range inthe actual businessoperation.
Merchant CreditRisk
Goods OwnershipRisk
CommercialSubstantial Risk
Risk List
Management Measures for Major Risks
Check for risks existing in eachcorporate business unit, variousimportant business activities, andimportant business processes.
Risk IdentificationRisk Evaluation
Evaluate the impact degree of riskson achieving corporate goals, etc.
Risk AnalysisClearly dene and describethe identied risks and theircharacteristics, and analyzeand describe the possibility andconditions of risk occurrence.Risk Identication Process
Note: 1. "Four-new" business risk refers to the risks of new products, new models, new teams, new merchants.
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidateGovernance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
3839
Internal Control SystemIn order to enhance internal control and risk prevention capabilities to promote sustainable development, the Company has formulatedkey systems such as the Internal Control Manual, the Internal Control Evaluation Manual, the Management Regulations for InternalControl Evaluation and Internal Control Assessment, and the Management Measures for Compliance, establishing a comprehensiveinternal control management system with the goals of compliance, asset security, accurate reporting, operational efficiency, andstrategic implementation. This system is composed of five elements: internal environment construction, risk assessment, controlactivity execution, information & communication, and internal supervision. It ensures the normalization and effectiveness of corporateoperations, providing a solid management and control foundation for stable development of the corporate.
The Company has established a systematic compliance management system to enhance the business compliance. It regularly identiesand assesses existing laws and regulations, and clearly denes the responsibilities of each department in the collection, identication,analysis, and response to laws and regulations, ensuring that corporate business operations fully comply with national laws andregulations as well as local regulations.
Compliance Operations
Compliance TrainingTo further enhance the risk control awareness of all corporate employees, improve the internal compliance management, strengthen thepre-control of risks, and ensure the stable operation of corporate business, the Company promoted compliance construction throughoutthe year in various forms. It organized over 80 internal and external risk control compliance training sessions, and these activitiesprovided a platform for all employees to learn about compliance knowledge and strengthened the risk defense line, safeguarding thedevelopment of corporate business.CaseConduct the "Risk Control Compliance Month" Activity to Deepen Compliance Awareness
In September 2024, the Company heldthe annual "Risk Control ComplianceMonth" training. After this one-monthdeep training and communication, thecompliance awareness of all employeeswas significantly enhanced. During thisactivity, external experts were invited togive special lectures. The corporate leadersemphasized the importance of compliancework at the closing ceremony, and expectedemployees to integrate the knowledge theylearned into their daily work for promotingbenefits via management, ensuring thestable development of corporate business.This activity not only enhanced theemployees' risk prevention capabilities, butalso laid a solid foundation for continuouscompliance operation of the corporate.
The Company conducts comprehensive evaluations on the internal control effectiveness of alloperating entities, either via the evaluation by the Audit Department or self-evaluation by the operatingentities, aiming to enhance the autonomous management capabilities of the operating entities. Theevaluation scope covers major risk management of each operating entities (27 entities), and the majorrisks as evaluated include merchant credit risk, four-new business risk, goods ownership risk, businessrisk, customs affair compliance risk, compliance risk, price risk, etc.
Internal ControlEvaluation
Special Audit
According to external regulatory requirements and the key risk points currently faced by corporateoperations, various special audits are conducted on the compliance, the key links, and the costrationality of key business models. The digital means are utilized to expand the inspection coveragevia data analysis, analyzing the root causes of problems and discussing the paths for managementimprovement.
AbnormalityEvaluation
The Company promotes each operating entity to conduct post-event evaluations on abnormal mattersarising from the risk case during operation process, requiring each operating entity to conduct suchevaluations for all abnormal matters that should be evaluated. This further enhances the primaryresponsibility awareness of the operating entities, and urges them to promptly summarize experiencesand lessons, improving risk management and response capabilities. The Audit Department selectsrepresentative cases to conduct re-evaluation on abnormal matters, analyzing the existing problemsfrom both internal and external perspectives to improve the construction of corporate case database.
System Check
The Company conducts system check (including major issues, important appointments and removals,major projects, and the use of large amounts of money, nancial, administrative, human resources,engineering rigidity, position-related consumption, asset leasing, equity investment) every year,focusing on key business divisions and weak management links.
Specic Measures for Internal Control
"Risk Control Compliance Month" Training
Special Training on External ComplianceSpecial Training on Operational Compliance
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidateGovernance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
4041
Tax Management
Anti-commercial Bribery
The Company always takes tax compliance as the bottom line, and strictly complies with the applicable tax regulations such as theCorporate Income Tax Law and those of the business location area. It is committed to maintaining the legality, transparency andstability of tax actions to ensure that corporate tax management is coordinated with business development, safeguarding the long-termand stable corporate development, and it practices social responsibilities of the corporate via the legal fulllment of tax obligations.Moreover, the Company has formulated the Tax Management System, aiming to standardize the tax management process, reasonablycontrol tax risks, and prevent tax violations. Through this system, the Company clearly defines the division of responsibilities andoperational procedures for tax work, stipulates the specic steps for tax compliance review, and elaborates on tax risk control measures.
The Company resolutely opposes any improper behavior damaging commercial ethics of the corporate. It has formulated the GovernanceSystem for Ethical Risk and requires all employees to comply with national laws and regulations, enhancing the "Four Consciousnesses",rmly holding the "Four-sphere Condence", and fullling the "Two Upholds", while requiring all employees to adhere to the principlesof being realistic and pragmatic. The corporate employees shall comply with the internal policies and procedures on anti-commercialbribery. In necessary cases, they shall implement ofce-holding avoidance and ofcial business avoidance, and must not engage inprot-making business activities or paid intermediary activities. When conducting commercial receptions, the employees shall followcorporate reception management, travel management, and ofcial business vehicle management regulations, and their position-relatedconsumption shall comply with applicable regulations, meeting the principle of frugality. The Company strictly prohibits employees fromengaging in illegal lending, and the employees shall neither embezzle corporate property, nor accept gifts, cash, etc. from subordinateswith subordinate relationships during weddings, funerals, and celebrations.
Honest Business Operation to Adhere to Commercial EthicsXiamen Xiangyu always adheres to the highest standards of commercial ethics, and strictly complies with laws and regulations suchas the Anti-Monopoly Law of the People’s Republic of China and the Anti-Unfair Competition Law of the People’s Republic of Chinato establish a sound commercial ethics management system. The Company resolutely opposes corruption, commercial bribery,monopolistic behavior, and unfair competition, and takes practical measures to prevent the occurrence of any violations of commercialethics, ensuring the integrity and compliance of corporate operations.
The Company has formulated a series of governance systems for commercial ethics risks to enhance the governance of ethical risksof the corporate. The Company has created a culture of integrity via standardizing employee behaviors, establishing a sound reportingmechanism, and supervising business partnersAct with Integrity in Professional Conduct
Taking the Tax Capacity BuildingTeam as the empowermentcarrier, and relying on the activeparticipation of tax partners atall corporate levels, the Companyclosely tracks the changes in taxlaws, deeply analyzing the impactof tax law changes on the tax-related business of the corporate,and proactively empowers businessdepartments to enhance thecontrol of tax risks from the source.
In addition to annual self-inspectionof tax by the companies at alllevels, the Company organizedmultiple special self-inspections orinspections of tax for tax-relatedscenarios such as withholding andremittance for non-trade payments,tax declaration, tax accountingstandardization, and additionalreduction of VAT. It comprehensivelyidentified risk points to formulatea rectification list, and urged theimplementation item by item.
The Company has created acase database for tax assistantinvestigation to conduct deepanalysis on tax risk issues, andthe self-inspection was used toextract optimization measures fortax management to achieve tax-enterprise collaboration.
In addition, the Company also identies and manages potential tax risks in its businessoperations. It controls key risk points and takes effective measures to ensure legal taxpayment and effectively prevent & manage tax risks. The Company has established aregular communication mechanism with the tax authorities in the business locationarea to consult and communicate with the tax authorities on tax policies, regulations,and practical operations, ensuring tax compliance. Moreover, through complianttax management, the Company actively builds harmonious relationships with thetax authorities, investors, partners, and all sectors of society, jointly promoting theoptimization and improvement of the tax environment.
Management Measures for Tax Risk
During the reporting period,the Company paid taxes in themount of billionin total.
Educational guidance:
Through forms such as "Honest and Upright Yu Chain Mini-Classroom", the Company provides employeeswith professional ethics education and integrity publicity & implementation, improving their awareness of discipline and law.Discipline enhancement:
Conduct regular discipline education for new employees, new middle-level managers, and new seniorexecutives, including integrity knowledge examinations and collective integrity talk to enhance the awareness of acting with integrityin professional conduct.
Warning education:
Organize the employees to participate in warning education activities, such as visiting prisons and attendingcourt trials, and illustrate discipline and law via cases to enhance employees’ sense of awe.
Supervision and inspection:
Strengthen supervision and inspection of subordinate enterprises and key positions, and promptlycorrect improper behaviors to improve the quality of supervision.
Disciplinary accountability:
Conduct strict investigations and handling of disciplinary violations and irregularities to conscate theproceeds of violations, and strengthen warning education via forms such as warning education conferences.Problem rectification:
For discovered problem clues, conduct efcient and coordinated clue disposal to ensure the implementationof problem rectication.Information security and intellectual property protection:
Pay attention to information security and intellectual propertyapplication, and prevent the disclosure of commercial secrets.
Party building work:
Practice Party building work to promote the alignment between corporate development and Party’s policiesand guidelines, and ensure the correctness of corporate development direction.Digital integrity archives system:
The Company has established a digital integrity archives system, which incorporates key datasuch as employees' rewards and punishments, job responsibilities, and integrity risk points, achieving big data supervision.Special supervision to control risks:
Through the "embedded" supervision mechanism, the Company conducts special governanceof key business links such as logistics receivables and overseas commissions to prevent integrity risks.
Comprehensive identification of risk points:
The Company conducts a comprehensive investigation on potential integrity riskpoints in key areas such as the supply chain, and identies 171 risk points in total, including high-risk, medium-risk, and low-riskpoints, providing a basis for precise prevention and control.Risk Assessment
Practical Efforts
CNY 3.205
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidateGovernance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
4243
Reporting Mechanism
To enhance the effectiveness of the supervision mechanism, the Company has formulated the Provisional Measures for ComplaintReporting Acceptance and Problem Clue Disposal. It clearly classies the complaint types such as reporting, accusations, criticism &suggestions, and appeals, and ensures that the discipline inspection and supervision institutions at all levels can handle each reportingcarefully and in a standardized manner, resolutely maintaining the transparency and fairness of supervision, and effectively protectingthe privacy and rights/interests of the whistleblowers. The whistleblowers can report behaviors that violate commercial ethics via phonecalls, emails, letters, and the Internet.
The Company strictly complies with the requirements of laws and regulations related to anti-monopoly and anti-unfair competition, andit resolutely opposes behaviors such as monopoly and unfair competition that disrupt market order. Moreover, the Company adheresto honest business operation, and actively maintains a free, fair, and honest market competition order. In addition, the procurementactivities of the Company and its subordinate companies all follow the principle of "openness, transparency, and merit-based selectionprinciple" to treat all small and medium-sized suppliers equally.
Anti-monopoly and Anti-unfair Competition
CaseAnti-monopoly Law Training
In order to improve the understanding andapplication ability of corporate employeesregarding the Anti-monopoly Law, in March2024, the Company invited lawyers froma law firm to conduct a special trainingon the content of the Anti-monopoly Law.Through the interpretation of the latestpolicies and the reminder of relevantoperational notes, the employees' abilityto solve practical problems was improved,and their awareness of risk prevention wasenhanced.
CaseConsolidate the Integrity Defense Line to Conduct a Collective Integrity Talk for Senior Executives
In order to further improve the integrity & self-discipline awareness and the anti-corruptioncapabilities of newly appointed seniorexecutives, in March 2024, the Company helda collective integrity talk. Through variouslinks such as warning education, integritytalks, and statements made by seniorexecutives, this event effectively improved theintegrity & self-discipline awareness of theexecutives, claried the integrity requirements,strengthened their sense of responsibility,and created an honest and uprightcorporate culture atmosphere, providing asolid disciplinary safeguard for the healthycorporate development.
Integrity Talk for Senior Executives
Anti-monopoly Law Training.
Acceptance Process of Complaint Reporting
Whistleblower Protection Mechanism
The names, employers, addresses and other information of the whistleblowers and accusers, as wellas the content of the accusations, must be strictly kept condential.CondentialityRequirementsInformationProtection
It is not allowed to transfer or disclose the accusation materials to or inform the organizations orindividuals being accused.
Avoidance
System
When the personnel of the handling department have conicts of interest or other circumstances thatmay affect the fair handling of the case, they shall voluntarily propose to avoid.ClaricationMechanism
In cases where the verification determines that the accusation is inconsistent with the facts, orwhere the case has been wrongly handled or punished, after following the prescribed procedures onsubmitting for approval, it shall be corrected within their authority, and appropriate measures shall betaken to clarify the situation.LegalLiability
For any violations such as disclosing the information of the whistleblowers or accusers, inquiring aboutthe case details, or involving in the case, they will be dealt with in strict accordance with regulationsand discipline. If it involves illegal or criminal acts of duty, legal liability will be pursued.
Acceptance
SubmittalforApproval
HandlingDisposalFeedback12345
During the reporting period, integrity talks were conducted for cadres before theirappointments, and integrity symposiums for young employees were held. In addition, electronic integrity les were collected and rened.
Green Empowerment to Jointly BuildEcological Civilization
Concept
Our Actions
Xiamen Xiangyu conducts a series of innovative practices and systematic management tointegrate the green concept into every link of its production and operation. The Companystrictly complies with environmental protection laws and regulations to establish a soundenvironmental management system; it advocates lean production, green logistics, greenagriculture, and green shipping to signicantly improve energy efciency; it conducts high-standard management of wastewater, waste gas, and waste to ensure that pollutantsare discharged in accordance with standards; and it deepens resource conservation andpromotes efcient recycling of resources via rainwater collection, wastewater reuse, andmaterial optimization.
Environmental Compliance to Consolidate Responsibility ManagementEnergy Conservation and Carbon Reduction to Respond to Climate ChangePollution Prevention and Control to Promote Ecological ProtectionResource Conservation to Develop Recycling Economy
IntroductionXiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024Special FocusConsolidate
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
4445
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
4647
Environmental Compliance to Consolidate Responsibility ManagementXiamen Xiangyu strictly complies with applicable laws and regulations such as the Environmental Protection Law as well as localenvironmental protection requirements, and adheres to the concepts of clean and safe development to actively achieve the strategicgoal of sustainable development. Moreover, the Company holds the HSE
management philosophy, and the subsidiaries that establishthe HSE system under the supervision and guidance of the Company include industry companies (Xiangyu Superchain, XiangyuAgricultural Products, Xiangdao Logistics), single companies (Xiangming Oils, Xiangyu Zhengfeng, Liangshan Xiangyu), and commodityoperation companies (more than 50).
XiangyuSOE
Conduct annual environmental factor monitoring, environmental impact assessment of new project,pollutant discharge permit application & review, and annual operation and maintenance of environmentalprotection equipment in accordance with the law.
ZhuoyuSupplyChain
Optimize the environmental protection management system and rene the division of responsibilities ofeach department.
XiangyuSuperchain
Clearly define environmental protection requirements during cargo loading/unloading and storageprocesses, conduct 2 environmental protection inspections every week, focus on checking dust controland wastewater collection, and promptly rectify problems found.Each subsidiary has established a sound environmental management system based on its own business situation. For instance,Xiangming Oils and Xiangyu SOE have both set up an environmental management structure with the General Manager as the primaryresponsible person, and have respectively established specialized departments for environmental management, responsible forimplementing environmental policies and regulations, formulating environmental systems and plans, supervising the implementation ofenvironmental work, and organizing environmental training. During the reporting period, six subsidiaries (including Suihua Xiangyu) ofthe Company obtained ISO 14001 environmental management system certication.
The subordinate companies of Xiamen Xiangyu have been actively engaged in environmental protection work. They conduct riskassessments for environmental incidents, improve emergency response plans and perform emergency drills, and regularly conductenvironmental protection training to prevent related risks via their practical actions. During the reporting period, subsidiaries such asXiangming Oils, Yi’an Agricultural Products, and Zhuoyu Supply Chain revised the relevant documents of the Emergency Response Planfor Sudden Environmental Incidents.
Health, safety andenvironment are thefoundation for the survivaland development of thecompany.
Manage stakeholders andshare information andexperience to achieve awin-win situation.
Managing environmentalaffairs is not only aneconomic responsibilitybut also a social one.Health, safety andenvironment are thecomprehensive reectionof the overall corporatequality.
The systematicmanagement and constantimprovement because wermly believe that "there isno best, only better".Use clean and harmlessmaterials and energy toprotect the environmentand resources.
The set goals canonly be achieved via"implementation".Not only comply with regulationsand standards, but also strive tobe the best and constantly raisethe environmental managementlevel.
Xiangyu Superchain
Establish an industry headquarters, organize the establishment of the industry headquarters and superviseand guide the HSE systems of each subsidiary. The headquarters and each subsidiary all have occupationalhealth, safety and environmental protection management institutions (departments).Xiangyu AgriculturalProductsXiangdao LogisticsXiangming Oils
Independent single companies, establishing occupational health, safety and environmental protectionmanagement institutions (departments), organizing the establishment of the HSE system for their companies.Xiangyu ZhengfengLiangshan XiangyuCommodity OperationCompanies
Over 50 independent staple commodity trading companies, operated by relevant functional departments,guided by the parent company to establish occupational health, safety and environmental protection system,and their implementation is supervised.
HSE System of Subsidiaries
Corporate HSEManagement
Philosophy
Corporate HSE Management Philosophy
Note: 1. HSE refers to health, safety and environment.
Regularly promote environmental work inspections, conduct special inspections on each department’simplementation every week, and promptly improve management issues; environmental protection facilitymanagement personnel conduct daily spot check to promptly rectify environmental protection equipmentproblems.
Optimize the environmental protection operation management system, and propose 8 managementregulations for environmental protection operations to ensure the effective implementation of measures.Conduct 3 environmental protection activities, including 2 special trainings on logistics environmentprotection operations.
Organize 1 environmental protection knowledge competition to enhance employees’ environmentalprotection awareness and business capabilities.
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
4849
CaseEmergency Drill for "Oil Leakage" AccidentIn March 2024, Zhuoyu Supply Chain conducteda special training for the scenario of "leakage ofused engine oil due to improper handling". Thetraining covered the hazards and preventionof oil leakage accidents, enabling employeesto understand the hazards and master theprevention methods; it detailed the emergencyhandling procedures, including the linksfrom detecting the leakage and reportingto emergency response and environmentalmonitoring; and it taught employees how tocorrectly use emergency equipment, suchas leakage control equipment and personalprotective equipment. Through case analysis,Zhuoyu Supply Chain helped employeesunderstand the handling process of oil leakageaccidents and strengthen their understanding ofthe emergency procedures, improving the abilityof workshops to deal with oil leakage risks.
CaseEmergency Drill for Hazardous Chemical Leakage
In April 2024, an emergency drill was conductedin the P4 paint room of Xiangyu SOE PaintingFacility area. This drill covered emergencyresponse for hazardous chemical leakage,personnel evacuation, fire-fighting, and othersubjects. A leadership group was established forthis drill, and multiple subordinate groups suchas re-ghting rescue and evacuation were alsoset up to dene clear responsibilities for each ofthem. The drill simulated a re incident causedby a leakage of thin liquid in the P4 paint room,and it set up two levels of warnings. It stipulatedthe reporting and response procedures afterdetecting the fire, and clearly defined the timerecord requirements for each step, emphasizingthat fire water was prohibited during the drill.Through this drill, Xiangyu SOE improved thesafety awareness and emergency responsecapabilities of its employees.
Simulation on Recovery of Leaking Waste Oil
Personnel Evacuation
XiangyuAgriculturalProducts
Strictly implement dust prevention measures during cereal purchase & storage processes, conduct dailyinspections and maintenance of ventilation and dust removal equipment to ensure normal operation andreduce dust emissions; conduct 1 environmental facility operation assessment every month to optimizeand adjust as needed.
Xiangdao
Logistics
Strengthen the spillage control during cargo loading/unloading and transportation, and equip with waterspraying vehicles to spray water on the cargo yard roads 3 times a day to reduce dust; regularly cleandrainage ditches to prevent pollution caused by rainwater erosion.
XiangmingOils
Conduct real-time monitoring of wastewater and waste gas emissions during the production process toensure compliance with discharge standards; inspect the operation status of environmental protectiontreatment facilities daily, and promptly handle abnormal situations; conduct 1 environmental performanceassessment every month to constantly improve environmental protection work.
XiangyuZhengfeng
Conduct daily tour inspections on the storage environment, promptly remove debris and accumulatedwater to keep the site clean; conduct monthly summaries and analyses of environmental protection work,identify problems and formulate improvement measures.
Liangshan
Xiangyu
Organize employees to learn and conduct drills to enhance their ability to respond to suddenenvironmental incidents; strengthen energy management in the production process, promote energy-saving and emission reduction measures to reduce energy consumption and pollutant emissions; conductself-inspections and self-corrections of environmental protection work every week, and constantly improveenvironmental protection performance.
Conduct 2 environmental protection technology trainings on cereal storage to improve employees’environmental protection operation skills.
Organize at least 1 environmental emergency drill every year, and simulate emergency responses aftercargo spillage to improve employees’ emergency response capabilities.
Conduct 2 environmental protection-themed activities, such as energy conservation and emissionreduction publicity week, and environmental equipment operation skills competition, so as to enhanceemployees’ environmental protection awareness and participation.
Organize at least 1 environmental protection training lecture every year, and invite experts to explainenvironmental protection knowledge and cases to raise employees’ environmental protectionmanagement levels.
Conduct 1 environmental protection technology exchange activity every half year to share environmentalprotection experience and technology with peer enterprises, jointly raising environmental protection levels.
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
5051
Deploy smart building automation control systems to realize smart control on public areaillumination, landscape lighting, electronic display screens, water feature facilities and airconditioning systems, achieving energy conservation.
Actively promote energy-saving and environmental protection office modes, advocatinggreen behaviors such as "power off when leaving", paperless ofce, and garbage sorting.
Completely install water-saving toilets, faucets and other water-using appliances, andequip a rainwater recovery system to reduce water resource waste.
Provide free shuttle buses for employees, encouraging them to take public transportation,and organize "Stop Driving for One Day" activities for employees who own private carsevery year to reduce carbon emissions caused by commuting.
Organize employees to participate in voluntary tree planting and environmental cleaningactivities every year to enhance their environmental protection awareness.
Green Operation Management
Energy Conservation and Carbon Reduction to Respond to Climate ChangeXiamen Xiangyu has constantly improved its energy management, and lean production, green logistics, green agriculture, and greenshipping are implemented to enhance energy utilization efciency and reduce energy consumption. During the reporting period, two ofits subsidiaries (including Zhuoyu Supply Chain) obtained ISO 50001 energy management system certication, Xiangming Oils obtainedthe Clean Production Certication, and Xiangyu SOE was rated as an "Environmental Credit Green Enterprise" in Nantong City.
Each subsidiary of the Company, based on its actual business conditions, has established a lean management system to constantlyupdate and replace equipment, achieving energy conservation and consumption reduction.Lean Production
XiangyuSOE
Establish an energy control team for eliminating the evaporating, emitting, dripping or leaking of liquid orgas, and assist each workshop to prevent energy waste.
XiangyuSuperchain
XiangyuAgricultural
Products
Xiangdao
Logistics
XiangmingOils
Zhuoyu
SupplyChain
Xiamen Xiangyu has been deeply committed to the concept of green and low-carbon development, constantly improving the green andlow-carbon awareness of its employees, and has fully integrated the requirements of sustainable development into its daily operationsand management. The energy consumption per unit area of corporate headquarters building is 8.89kgce/m? only, which is 58.5% lowerthan the standard value (≤21.4kgce/m?) stipulated in the Energy Management System - Certication Requirements for Public BuildingManagement Organization, and the corporate energy efciency management level is at the leading position in the industry.
Green Operation Management
Utilize peak production to start/stop air compressors and energy-saving technological renovations foreffectively reducing energy consumption.
During the reporting period, the proportion of energy to labor costs decreased by 0.48% compared to thebudget at the beginning of year.Establish a team dedicated to excellence, and utilize technological renovations to optimize productionprocesses. The low-efficiency fixed-frequency motor in vacuum pumps is replaced with a variablefrequency motor to reduce electricity consumption.
Optimize the cargo loading/unloading process, and introduce energy-saving forklifts and cranes toincrease loading/unloading efciency and reduce energy consumption.Install smart lighting systems to automatically adjust the brightness of lights according to the usage of thecargo yard, reducing electricity waste.
Install insulation and heat preservation materials in the cereal storage area to reduce energy loss due totemperature variations.Promote the usage of low-power and high-efficiency ventilation equipment to reduce electricityconsumption during the ventilation process.
Upgrade the lighting system of the railway freight yard, replacing traditional lamps with LED lamps.Optimize the energy structure, replacing diesel traction vehicles with natural gas traction vehicles toreduce carbon emissions.
The lean management is adopted to conduct projects such as the renovation of pre-treatmentconditioning towers and the utilization of waste heat. During the reporting period, the steam consumptionper ton of soybeans decreased by 13.5 kg.
Adopt the energy trusteeship mode of air compressor invested by others, where the cooperative entityrenovates the air compressor station, and the Company purchases compressed air and charges for theoperation electricity, achieving cost reduction and efciency improvement.
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
5253
CaseExternal Air Conditioning Project for Reach StackerIn September 2024, Chengdu Xiangdao successfully completed a two-year external air conditioning project for reach stacker.During the summer, the local temperature is extremely high and it is humid, so reach stacker drivers need to slow down and turnon the air conditioning to prevent heatstroke, resulting in a signicant increase in fuel consumption. In this project, the externalair conditioner was added to the reach stacker, and their own batteries were to supply power for cooling, thereby improving theworking environment and reducing fuel consumption. After the renovation, the average fuel consumption of the reach stackerwas reduced by 0.85 liters of diesel per hour, and a total of 1,177.25 liters of diesel was saved during the reporting period. Thisproject effectively improved the working environment of the reach stacker during the summer, allowing drivers to work morecomfortably while waiting for container loading and unloading operations, and it also signicantly reduced the fuel consumptionof equipment.
CasePre-treatment Conditioning Tower Renovation ProjectIn 2024, due to problems such as waste of residual heat from the pre-treatment conditioning tower, impact on condensationnegative pressure, and excessive steam consumption, Xiangming Oils conducted a comprehensive renovation. On one hand,Xiangming Oils transformed the steam layer of the conditioning tower into a hot water layer, reducing the original outlet watertemperature from 57℃ to 45℃. Xiangming Oils also moved the unused P219H descaling hot air heater to the hot air heatingarea of the conditioning tower at rst oor, utilizing the leaching and pre-treatment condensate water to raise the hot watertemperature to over 80℃. On the other hand, Xiangming Oils used the condensate water instead of steam to heat the hotair. The renovation achieved remarkable results, with the hot air temperature stabilized at 77.6℃, effectively helping theconditioning tower reduce the moisture content of soybeans. After the renovation, the pre-treatment conditioning tower couldsave approximately 0.4 tons of steam per hour, with a savings of 5 kilograms of steam per ton of soybeans, and it could save4,000 tons of steam annually, effectively improving energy utilization efciency.
Railway transportation has significant advantages in terms of energy consumption and pollutant emissions. In the construction ofthe multimodal transport logistics system, Xiamen Xiangyu fully utilized its own resources of dedicated lines of railway, and took the"greening" as the core development concept. It actively leveraged the unique advantages of open-top container transportation toexpand "road-to-railway" transportation businesses for coal, cement clinker, kaolin and other categories, which further consolidatedthe green transformation achievements in the logistics process, significantly reducing the comprehensive energy consumption andpollutant emissions in the logistics process. The "road-to-railway" routes of Xiamen Xiangyu had an annual transportation volume of 24million tons
, reducing 800,000 vehicle trips
, which could reduce carbon emissions by 4.4 million tons
annually, contributing to thedevelopment of green logistics.
Green Logistics
Xiangyu Agricultural Products has integrated the concept of green development throughout its operations, and has focused on four keyaspects to contribute to the green development of agriculture.Green Agriculture
Utilize order planting to guide varieties and green
plantingActively build high-standard green agricultural
demonstration bases
Comprehensively promote energy conservation andemission reduction in warehousing businessesModerately develop and invest in green agricultural
projects
Green Agriculture Development Strategy of Xiangyu Agricultural ProductsXiangyu SOE has adopted measures such as optimizing the hull shape, and installing front guiding pipes, rotor sails, and alternativefuels, and has focused on customer operation and maintenance as well as long-term benets. Through a series of design conceptsand solutions, it constantly improves performance indicators such as fuel consumption, harmful gas emissions, and energy efciencymanagement of ships, enhancing the operational efciency and environmental protection effectiveness of the entire industry.
Green Shipping
Notes:
1. The annual transportation volume of the "road-to-railway" route is 24 million tons, which is approximately transportation volume of corporate railway station/yard in 2024.
2. The reduced truck transportation is calculated at an average load of 30 tons per vehicle, so that is 24 million tons/30 tons per vehicle = 800,000 vehicle trips.
3. The calculation for reducing carbon emissions by 4.4 million tons per year is as follows: (1) Calculation logic: Freight volume × Transportation mileage × (Carbon emission
coefcient of road transportation - Carbon emission coefcient of railway transportation). (2) Key coefcients: The estimated average transportation mileage is 2,500 kilometers, thecarbon emission volume of road transportation is 8.16 kilograms per hundred tons per kilometer, and the carbon emission volume of railway transportation is 0.8342 kilograms perhundred tons per kilometer. On average, a tree absorbs about 18 kilograms of carbon dioxide per year. (3) Thus, the calculation of 2.4 million tons of freight volume is: 240,000 × 2,500× (0.00816 - 0.0008342), which is approximately equal to 4.4 million tons of carbon dioxide emission reduction.
IndicatorsUnit2024Raw coalTons17,583.29Fuel oilTons109.17DieselL10,065,848.41GasolineL400,952.77Natural gasm?2,451,417.17SteamTons162,058.54ElectricitykWh70,518,910.06
XiangyuZhengfeng
Conduct energy-saving renovations to lighting, ventilation, and other equipment in the storage area.
Liangshan
Xiangyu
Promote the usage of energy-saving production equipment, such as high-efciency motors and energy-saving heating furnaces.
Enhance the training on employees’ awareness of energy conservation, encouraging them to activelyparticipate in energy-saving and emission reduction activities and propose reasonable suggestions.
Optimize the production processes to reduce energy waste and improve energy utilization efciency.
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
5455
Pollution Prevention and Control to Promote Ecological ProtectionXiamen Xiangyu attaches great importance to the protection of the surrounding environment of its operation sites, ensuring thatthe discharge and disposal of all pollutants and waste materials strictly comply with the local emission standards. Moreover, theselection of all production projects and the construction of factory sites are conducted in accordance with the Regulations on theAdministration of Construction Project Environment Protection to implement the environmental protection assessment system and the"three simultaneous" principle for pollution control, meeting the requirements of national and local ecological protection. It also avoidsecological protection areas, and never violates the ecological protection red line or the environmental quality bottom line.
The Company strictly follows the applicable laws and regulations such as the Law on Prevention and Control of Water Pollution, andeach base/branch or subsidiary has established a management system accordingly to conduct regular maintenance of wastewatertreatment facilities, ensuring that wastewater is discharged in accordance with standards. Meanwhile, the Company actively renovatestechnologies to reduce wastewater discharge, among which Zhuoyu Supply Chain and Xiamen Singamas do not discharge productionwastewater and use such wastewater for recycling in the production system.
Wastewater Management
CaseLeaching Wastewater Reutilization Renovation ProjectIn 2024, in order to address the problems in the leaching workshop such as waste of heat from steam condensate, unstablewater volume, and the need for steam consumption by DC hot air, Xiangming Oils conducted a leaching wastewater reutilizationproject. This project ensured the discharge, overow, and sewage via self-made water tanks, and purchased hot water pumps.Moreover, the old pipelines were used to connect to the DC original steam heater and the 8th water addition layer, and later,a self-controlled water tank level was added. After the renovation, the wastewater was heated by the heater to increase thetemperature of DC hot air, and approximately 0.2 kilograms of steam per ton of soybean meal was saved, which not onlyreduced the amount of wastewater discharge but also lowered the water temperature from 65℃ to 51℃, effectively alleviatingthe wastewater treatment burden.
The Company strictly complies with applicable laws and regulations such as the Law on Prevention and Control of Air Pollution, andeach subsidiary has established management systems accordingly to monitor the concentration of waste gas and constantly upgradewaste gas treatment technologies in strict accordance with national and local standards, ensuring that the waste gas is discharged incompliance with standards.
Waste Gas Management
XiangyuSOE
During the production process, the emission indicators of particulate matter and paint mist areimplemented in accordance with the Integrated Emission Standards of Air Pollutants. The VOCs emissionstandards shall be implemented by referring to the limits for the surface coating industry specied inJiangsu Province’s Emission Control of Volatile Organic Compounds from Industrial Enterprises, and theodor concentration is implemented in accordance with the Emission Standards for Odor Pollutants.
XiangmingOil
Formulate the Management System for Water Pollutant Discharge to clearly define the managementresponsibilities of each department for wastewater, ensuring that the wastewater is treated to meetstandards before being discharged. Meanwhile, standardize the management of the rainwater andsewage systems to prevent water pollution, and strictly manage rainwater discharge valves and initialrainwater collection pools.
Xiangming
Oil
Particulate matter and emission standards are implemented in accordance with the Integrated EmissionStandards of Regional Air Pollutants, and odor concentration is implemented in accordance with theEmission Standards for Odor Pollutants. The treatment process includes cyclone dust removal + heatexchange + water spray + alkali spray, and pulse dust collector for dust removal, etc.;XiangyuSOE
Implement the Integrated Sewage Discharge Standard at the third level to enhance the governance andmonitoring of domestic sewage, and develop water recycling technologies to reduce emissions, properlymanaging the sewage treatment facilities and maintaining daily operation records.
IndicatorsUnit2024Total waste gas emissionsm?1,139,963,239.28Particulate mattermg/m?4.25Nitrogen oxidesmg/m?1.26Sulfur oxides mg/m?3.85VOCs emissionsmg/m?14.66
IndicatorsUnit2024
Total wastewater discharge volumem?96,040.00Chemical oxygen demand (COD)mg/L123Five-day biochemical oxygen demand (BOD
)mg/L38.425Ammonia nitrogenmg/L17.85Total phosphorusmg/L0.548Suspended solidsmg/L21
The segmented workshop and pipeline tting workshop are equipped with mobile welding smoke puriers,which are distributed to the welding operation points in the workshop to ensure that the welding smoke inthe workshop is effectively collected.The waste gas from the coating workshop is ltered and discharged after multi-stage paint mist lters+ zeolite rotors + CO catalytic combustion/RTO combustion devices, with high treatment efficiency,effectively reducing the VOCs waste gas emissions.
In 2024, the pollution control facilities in sewage station were renovated, and the odor treatment processfor the waste gas generated in the aeration tank, dosing room, and sludge temporary storage room waschanged from the original low-temperature jet ionization + microwave photocatalysis to the alkali washing+ water washing.
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
5657
Xiangyu SOE used environmentally friendly materials in the initial design stage to reduce VOCs emissions at the source:
Case
Upgrade and Renovate the Waste Gas Treatment Facilities in the Coating Workshop to Improve AirQuality in the Workshop
In 2024, considering the harmful impact on the atmospheric environment and personnel health from the coating workshop’swaste gas containing harmful substances such as paint particles and solvent vapors, Xiangyu SOE completed the installation,commissioning and acceptance of the organic waste gas treatment renovation equipment within 210 days. After the renovation,the VOCs removal rate of the waste gas treatment system reached over 98%, and the emission concentration of waste gas fromthe coating workshop was stable, far below the national emission standards; meanwhile, with the help of the RTO device forheat energy recovery, the energy utilization efciency was improved.
The Company strictly complies with applicable laws and regulations such as the Law on Prevention and Control of EnvironmentalPollution by Solid Wastes, and each subsidiary has established strict waste management systems and hazardous chemicalsmanagement systems, emphasizing the compliant disposal of hazardous waste to reduce its pollution to the environment. Moreover,the hazardous waste and general solid waste are classified, disposed and recycled by qualified third-party entities, achieving solidwaste reduction, resource utilization, and harmless treatment. For example, the waste engine oil at Xinjiang Xiangdao was treated byincineration, and the tailings of Zhuoyu Supply Chain and Xiamen Singamas were sold to cement plants for recycling and utilization.
Waste Management
XiangyuSOE
In strict accordance with the applicable requirements of the Standard for Pollution Control on HazardousWaste Storage and the Standards for Pollution Control on the Storage and Disposal Site for GeneralIndustrial Solid Wastes, sign hazardous waste transfer and disposal contracts with qualied hazardouswaste disposal entities, and conduct annual management plan declaration and daily management ofhazardous waste in the Jiangsu Provincial Hazardous Waste Dynamic Management System in accordancewith the requirements of the Jiangsu Provincial Solid Waste Management Center.
Xiangdao
Oils
Identify hazardous wastes as waste mineral oil, waste paint buckets, waste oil buckets, laboratorywaste liquid, waste reagent bottles, waste lamps, and waste lead batteries, and formulate a specialmanagement system for hazardous waste. This system is revised once a year, and training is conductedonce a year. In addition, an assessment system is provided for strict management of hazardous waste.
ZhuoyuSupplyChain
Mainly engage in grinding and screening of iron ore to produce iron concentrate powder. The hazardouswastes mainly include waste grease/waste engine oil from equipment maintenance, waste packagingmaterials and a small amount of residual liquid generated during laboratory analysis, all of which aretransferred and disposed of by qualied entities in compliance with regulations;
IndicatorsUnit2024Total waste generation volumeTons5,008.98
The long-lasting environmentally friendly fuel-saving anti-fouling coatings can reduce fuel consumption and wastegas emissions. The advanced acrylic silane and methacrylicsilane anti-fouling coating technologies on the market canreduce waste gas emissions by more than 10%.
High/Ultra-high solid content coatings can reduce thepaint consumption and decrease VOCs emissions andthe number of waste paint buckets. Taking the ballasttanks of a 63,500 DWT bulk carrier as an example, using73% solid content primer and 80% solid content primercompared to conventional solid content coatings, VOCsemissions are reduced by 33.6% and 48.4%, respectively,while the paint consumption is signicantly reduced, andthe generation of hazardous waste paint bucket is alsodecreased.
Increase the application proportion of envi-ronmentally friendly paintsLong-lasting environmentally friendly fuel-saving anti-fouling coatings application
| 01 | 02 |
Hazardous wastes such as paint cleaning waste, waste hydraulic oil, paint residue, waste lter elements,waste activated carbon, waste paint buckets, and grease waste from grease traps are all entrusted toqualied entities for disposal. The storage site is equipped with measures to prevent seepage and leakagein accordance with the requirements of the Standard for Pollution Control on Hazardous Waste Storage,and different methods are adopted for storage according to the properties of solid waste. Hazardous solidwaste with high moisture content has a dedicated storage container.General solid waste is packaged in buckets, tanks, or high-strength special packaging bags for storage.
According to the Standard for Pollution Control on Hazardous Waste Storage, a hazardous wastetemporary storage room is constructed, equipped with explosion-proof lamps, gas collection andpurication devices, diversion channels, re-ghting emergency equipment, and labor protection supplies.According to the Technical Guideline for Deriving Hazardous Waste Management Plans and Records, thehazardous waste is identied to enter into the records, ensuring that each item is recorded, each item islabeled, and the physical items are correspondingly matched with the records.According to the requirements of applicable laws and regulations such as the Technical Specication forSetting Identication Signs of Hazardous Waste, the identication signs for hazardous waste storage areupdated in a timely manner, and the register, transfer and disposal of hazardous waste are implemented.
Optimize the maintenance frequency and fueling volume of equipment and facilities, and introduce QRcode information management. Conduct relevant training to enhance the full-process management of theequipment, and standardize the use of grease and engine oil;Rene the hazardous chemicals management system, including management systems, stock-in/stock-outrecords, personnel conguration and training, etc.
The Company has implemented integrated paint ofbottom and surface in the engine room of an 82,000DWT bulk carrier. Compared with the alkyd paint system,it can reduce the paint consumption, VOCs emissionsand the number of waste paint buckets, and also has anadvantage in total cost.
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
5859
Resource Conservation to Develop Recycling EconomyThe Company constantly deepens resource conservation and is committed to achieving efcient recycling of resources. In terms of waterconservation, the Company has adopted innovative measures such as rainwater collection and wastewater reuse, signicantly reducingwater consumption; various measures have been implemented to save cereals, reduce losses and conduct lean shipbuilding, achievingresource conservation.
Subsidiaries under Xiamen Xiangyu have constantly conducted water resource conservation projects to effectively improve waterresource utilization rate. Subsidiaries such as Sanmenxia Xiangdao have constructed rainwater collection tanks to recycle and reuserainwater for cleaning containers, reducing water waste; Zhuoyu Supply Chain has formed a team dedicated to excellence, which furthercleaned the bottom sludge of rainwater collection tanks to increase collection volume and also installed more ltration equipment,improving the utilization rate of rainwater reuse for production.
Water Resources
CaseUse Circulating Condensate Water from the Chiller to Replace Tap Water
In 2024, Xiangming Oils made improvements to address the problem of tap water condensation in the oil content detectionexperiment by extraction method. It adopted a chiller to condensate in a closed-loop circulation manner, and set a constantcondensation water temperature, which saved water resources while ensuring stable experimental results. After the renovation,the chiller saved approximately 210 liters of water per hour, and could save 1,500 m? of water per day.
IndicatorsUnit2024
Total water consumptionm?211,793.03Recycled/Reused waterm?27,876.00
Xiangyu Agricultural Products has implemented various measures in all logistics and transportation links to save cereals and reducelosses, effectively reducing cereal losses and improving transportation efficiency and quality. During the reporting period, the totalamount of agricultural supplies and cereal/oil boxes used for production, transportation and packaging by Xiangyu Agricultural Productswas 604.36 tons, all of which were made of renewable materials.
Xiangyu SOE starts its lean shipbuilding from the source, optimizing resource utilization at the design level.
Material Conservation
24-hour empty container inspection by container inspectors to ensurethe integrity of the empty containers before loading
Belt is mounted on the loader to reduce cereal abrasion and damageUse compressor pumps to clean the containers for reducing residual materialsin the containers, and make special hanging boxes to reduce tipping during shiploading
Expand 20-foot container railway handling stations for cereals from Liaoning andJilinLaunch port nodes that can be transported by railway in the sales area,and increase 20-foot railway container stations for inland distribution in thesouthwestern region
Put container ipping equipment to achieve direct loading in the warehouseRene the return cereal road transportation platformPromote the railway container sales mode transformation to increasedirect transportation ratio
Manual inspection is carried out and the stored cereals with many impurities arere-sieved to remove impurities
Self-made cereal-blocking boards to prevent spillage and stealingPurchase moisture-proof fabric to reduce cereal moisture
?
?
?
?
?
?
?
?
?
?
?
Bulk cereal container
operation link
Bulk cereal port loading/unloading operation link
Cereal road and railwaytransportation link
Accelerate the implementation
of the "zero loss" mode forrailway-water-railway one-ticket
transportationMeasures for Saving Cereals and Reducing Losses by Xiangyu Agricultural Products
Lean Production Measures of Xiangyu SOE
Compare with the material quantity of advanced domestic shipyards, conduct light-weighting and standardization equivalentoptimization, and according to the actual production conditions, op-timize the design from three dimensions: direct materialusage, main machining, and process machining material quantity control, reducing material quantity.
Adjust the structural form, size, and position layout to optimize the weight, stability, and rigidity of the ship, achieving partial costreduction and efciency improvement.
Material Quantity Optimization
Structure Optimization
Collaborative Growth and Coexistence toJointly Draw a Beautiful Blueprint
Concept
Our Actions
Holding the concept of innovation-driven development, Xiamen Xiangyu deepens theconstruction of digital platforms; it optimizes the merchant management system to strictlyensure the security of goods ownership and customer rights & interests; it focuses onthe people-oriented principles to establish channels for employee growth, stimulating theinternal driving force of the team; meanwhile, it actively fullls social responsibilities tointegrate corporate development with social needs, and continuously engages in publicwelfare activities and empowers rural revitalization, achieving a coordinated improvementon economic benets and social value.
Innovation-driven, Escort Industrial UpgradingGather Sincerity, Build Cooperative EcosystemPeople-oriented, Compose a Bright FutureTake Responsibility, Share Development Achievements
Xiamen Xiangyu Environmental, Social and Governance (ESG) Report 2024
IntroductionSpecial FocusConsolidate
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
6263
Innovation-driven, Escort Industrial UpgradingBased on digital intelligence empowerment and innovation-driven strategies, Xiamen Xiangyu deepens the integration betweendigitalization technologies and business scenarios, and conducts independent research and development to launch efficient andsmart digitalization service systems and differentiated innovative products. While accelerating the implementation of technologies,it strictly builds data security shields and establishes a full-chain privacy protection mechanism to ensure the controllable securityof user information and operations, which achieves the coordinated development between technological innovation and securitytrustworthiness, constantly creating smart and high-value service experiences for customers.
To solidify the achievements of digitalization transformation, the Company has established a digitalization organization system. ADigital Transformation Committee composed of the corporate senior executive team is responsible for decision-making on digitalizationconstruction; the Digital Transformation Office is responsible for coordinating the implementation of key strategic projects at thecorporate level to ensure the effective integration of digitalization requirements of business lines; and the Information TechnologyCenter, as the innovative information body for digitalization implementation, promotes the practical implementation of the digitalizationstrategy both directions: from top to bottom, and from bottom to top.
As a leading enterprise of the staple commodity supply chain industry in China, Xiamen Xiangyu, leveraging its vast business data,extensive customer resources, and numerous application scenarios, has been fully committed to promoting digital transformation andupgrading. It has successively launched digitalization service systems such as the Smart Transportation Network Freight Platform, CloudSupply Chain Portal, and "Yu Lian Tong", helping to address the core difculties of the industry. In the context of green transformation,the Company has successfully applied the digitalization achievements of "Yu Lian Tong" and Smart Transportation Network FreightPlatform to address the core difculties in the industries such as metal minerals, agricultural products, energy & chemicals, and newenergy, effectively improving the efciency of supply chain circulation and reducing circulation costs.
Digital Intelligence Empowerment
Digitalization Governance
Digitalization Strategy
Decision-makingLevel
Management Level
Execution Level
Digital Transformation Committee
Corporate Information Technology Center
Technical LineDigital Functional and Business Organization
Business Line
Digital Transformation Ofce
Digitalization Transformation Governance Structure
The Company constantly upgrades the Xiangyu Smart Logistics Digitalization Network to build a comprehensive supply chain servicesystem, aiming to conduct integrated management on data related to customer logistics, business ow, information ow, and capitalflow. On the one hand, through the three-line linkage of business, risk control, and supervision, it enhances the comprehensivemanagement of the supply chain to realize smart processes, online services, and industrial ecologization. On the other hand, throughonline management and tracking of the full supply chain, it further standardizes and normalizes the management on contract signing,commodity procurement & sales, stock management, import & export trade, receivables and payables, and other supply chainbehaviors.
The corporate digitalization transformation strategy adheres to the principles of "overall planning, phased implementation, andprioritizing urgent needs", ensuring that digitalization projects can be conducted in a targeted and progressive manner. Through theonline, data-driven, smart, and collaborative transformation of business operations, the Company is committed to becoming a leader insmart supply chain services and a pioneer in industrial Internet, and conducts its work around ve key tasks: "focusing on customers,enhancing efciency and effectiveness, industrial interconnection, swift response, and organizational transformation".
Digitalization Achievements
CaseCloud Supply Chain Portal to Achieve Cost Reduction and Efciency Improvement
The Company builds an online service portal – "Cloud Supply Chain Portal", which extends informatization services from theCompany to relevant parties in the supply chain, providing all-round, efcient, and convenient supply chain operation services fordownstream merchants. In 2024, the Company completed the upgrade to version 3.0. Due to the immutable and decentralizedcharacteristics of block chain technology, it played a crucial role in the key traceable nodes in customer trade operations(such as registration, pick-up, receipt conrmation), which not only ensured the authenticity and security of trade data, butalso achieved blockchain management of the entire process instructions, improving the transparency and feasibility of datamanagement. Meanwhile, this upgrade realized real-time query of main information on the sales end chain, online self-servicepick-up for users, conrmation of payment receipts, invoice inquiries, and other functions, which greatly simplied the processfor customers in high-frequency business scenarios, providing more convenient, efcient, reassuring, and worry-free services forthe Company and its external parties. In 2024, 604 service merchants were added on this Platform, with a cumulative 77,094orders and pick-ups, and a total value of up to CNY 52.695 billion.
Digital Smart Service System
Ecological win-winRealization
of threetransformations
Smart Supply Chain ServiceDigitalization EmpowermentRealization of transformation via platformization,
internationalization and digitalization
Connect "lines" to form a networkUtilize digitalization to accelerate
ecological win-winConnect "points" to form linesUtilize digitalization to enhance business
collaboration
Strengthen and solidify the "points"Utilize information technology to providebasic services properly+
……
Combinationof industry and
nance
Consultation
services
Raw materialprocurement
RoadWaterway
RailwayWarehousingLogisticssupport
StockmanagementRisk hedging
Finished-product sales
Multimodal Transport
ServicecollaborationValue exploration
ServiceoptimizationEfciency andeffectivenessimprovement
Additional value of service/Customer loyaltyHigh
Low
Integration of
logistics andtrade
Incorporationof trade and
industry
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growth
and Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
6465
CaseInternational Logistics Smart Services to Enhance Link TraceabilityThe Company’s international logistics business of new energy has been growing year by year, gradually expanding from "port-to-port, single-link" services to "end-to-end, integrated" full-chain logistics. Currently, it has achieved direct services to 26 countriesand regions around the world. In terms of exports, the Company’s cumulative service volume for photovoltaic, energy storageproducts, factory construction materials, and equipment ranks among the top in China. In terms of imports and re-exports,the Company constantly raises the integrated service level of the entire process of mineral products and metal products, andconstantly explores mode innovation to launch a series of exible combinations. Moreover, in addressing customers’ demandfor full-process node information interaction, the Company has launched the smart services of international logistics based onthe cloud supply chain portal system, achieving functions such as full-process visibility of containers, timely abnormal warningmanagement, and efcient risk response, and the cooperative customers can also directly view real-time information of ordertrajectories via the "sharing" function, ensuring the quality of goods delivery and customer service level.CaseSmart Warehousing to Achieve Operation AutomationThe Company has built the smart warehousing to comprehensively integrate smart terminal equipment, automated operationsystems, and cross-platform collaborative networks, achieving a digitalization upgrade of the entire warehousing operationprocess, which effectively improves management accuracy and operation efciency.Online self-service fordrivers
The pick-up drivers can query the delivery documents online via the WeChat ofcial account, and OCRwill automatically verify user identity information. After completing information entry and documentprocessing, the pick-up vehicles can directly enter the warehouse via the smart gate, without having toget off the vehicle to complete the document and payment procedures, signicantly reducing warehouseoperation costs.
Full warehousecoverage of PDAdevices
69 warehouses and 449 warehouse management personnel in the system have fully adopted PDAhandheld devices. By scanning codes, they can automatically obtain basic information of the goods andcomplete information entry and shelving.OCR automaticidenticationsystem
The OCR technology is deployed in the stock-in and stock-out links to automatically capture key fieldinformation of paper documents, achieving the precise and automated data collection.Construction ofsmart drivingsystem
The smart warehouse in Xinhui has been newly launched to integrate the automated driving system andsmart dispatch module, improving the efciency of heavy goods storage and delivery operations.Construction ofsmart pickinghub
The logistics system docks with customer stock-out instructions, and the smart picking algorithmautomatically locates picking and distribution positions and plans the optimal picking path, signicantlyimproving the efciency of warehouse stock-out operations.Cross-systemcollaborativeoperationplatform
The smart logistics system builds a cross-system collaboration ecosystem with key customers andlogistics suppliers. The customer system docking program can realize the online transmission of stock-in/stock-out, and cargo transfer instructions, creating an efficient collaborative mechanism for goodsownership under the security supervision; after the external truck eet docking program is launched, itcan conveniently issue road transport tasks and track the dynamic of road transportation.
CaseATS New Electronic Bill Project to Enhance Management Efciency
In addressing the common problems in the shipbuilding industry such as low production efficiency, differences in laborquality, and safety hazards, Xiangyu SOE relies on 5G technology to build a three-layer network architecture composed of corenetwork, edge computing nodes, and terminal devices, and it successfully optimized multiple scenarios such as production unitsimulation, production site detection, and exible production & manufacturing. After the program application, the productionefciency was increased by 21%, while production costs were reduced, and the full-process safety monitoring, smart logistics,and industrial chain collaboration were successfully implemented on a large scale.Production unit simulationThrough 5G network, the real-time data transmission andparallel communication amongmultiple devices were achieved,which signicantly shortenedthe product production cycle,improving production efciencyand product quality.
Production site detectionThe advanced safety monitoringsystems and smart earlywarning mechanisms wereintroduced to monitor potentialsafety hazards and abnormalsituations in real time. Onceproblems were detected, anemergency response wouldbe triggered automatically,ensuring production safety.
Flexible production & manufacturing
Flexible production &manufacturing: Through asmart scheduling system, theconguration and parameters of theproduction line were dynamicallyadjusted to achieve renedmanagement, effectively reducingproduction costs and ensuringstable product quality.In 2024, relying on two specialized projects: "LES Logistics Implementation System" and "IoT Data Collection Platform", XiangyuSOE was selected into the 2024 5G Factory List released by the Ministry of Industry and Information Technology of the People’sRepublic of China, marking the phased achievement of corporate digitalization transformation.
CaseSelection into the 5G Factory List to Achieve Digital Transformation Breakthrough
In August 2024, the ATS new electronic bill project was ofcially launched. The new electronic bill module has completed thereconguration of the system to support electronic bill innovation and the compatibility of traditional bill business. It integratesthe core bill business processes, such as acceptance, endorsement, and pledge, and optimizes the operation process andpayment credit management. This demonstrates the efciency and wide acceptance of the new generation of bill system inpractical applications, and it signicantly enhances the efciency, security, and transparency of fund management, providingreal-time and accurate data support for corporate’s strategic decisions.
Research DevelopmentTo solidify the position of scientic and technological innovation body, Xiamen Xiangyu has established a three-level research systemcomposed of "Group Headquarters Research Institute, Corporate Industry Research Department, and Frontline Operating EntityResearch Departments", and it has a number of full-time research teams to conduct research tracking from three dimensions: macro,industry, and product. Meanwhile, the Company is accelerating the promotion of advanced technologies (such as AI and block chain) tobe applied in the supply chain industry scenarios. It has established unique industrial synergy advantages in strategic industries suchas new energy and high-end manufacturing, and constantly intensies the digitalization, intelligence, and green transformation of thesupply chain. The subsidiary of the Company, Xiangyu Smart Technology, has been recognized as a "Municipal Small and Medium-sizedEnterprise with Specialized, Refinement; Differential and Innovation Characteristics", Xiangyu SOE has a provincial-level technologycenter and a provincial-level engineering research center, and Beijing Xiangyu Digital Technology has been recognized as a "NationalHigh-Tech Enterprise".
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growth
and Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
6667
CaseTechnological Innovation in Green Ships and Marine Engineering EquipmentXiangyu SOE focuses on research on new theories and methods for green ships and marine engineering equipmenttechnologies, aiming to address major and key technical issues in green ships and marine engineering equipment, and it iscommitted to establishing a research hub for green ships and marine engineering equipment technologies in China as well asa discipline and technological innovation base with international inuence. Moreover, it aligns with the world’s cutting-edgescientic research and practical technologies, promoting the engineering progress of green technologies in the shipbuilding andmarine industries in China. In addition, the new product R&D enables the corporate ship products to become further green andenvironmental, reducing ship energy consumption and pollution to meet environmental protection requirements.
Xiangyu SOE Jixiang series 63,800-ton bulk carrier38,000-ton duplex stainless steel chemical carrier
The product has green and environmental properties.According to calculations, when this ship sails at aneconomic speed of 12 knots, its CII rating can remainat Level A by 2030.
Due to the outstanding corrosion resistance, highstrength and toughness of duplex stainless steelmaterials, plus the energy-saving & environmentalprotection design and efficient cargo system, it hasbecome a benchmark product in the global chemicalcarrier industry, featuring safety, economy andenvironmental friendliness.Note: CII is an indicator for measuring the operational efciency of ships, which is applicable to ships with a gross tonnage of 5,000 GT or above. CII represents the amount of carbon
dioxide emitted per sea mile for each unit of cargo transported. According to the IMO regulations, operating ships must be subject to annual operational CII verication and be ratedin the range Grade A to Grade E according to the ship’s performance, among which, Grade A represents the highest efciency and Grade E represents the lowest efciency.
Focusing on the six links of "strategic planning & project initiation decision-making, demand management, project management,quality assurance, knowledge management, and personnel management" and oriented by market demands, conduct end-to-endfull-process responsibility planning to enhance R&D efciency.Upgrade the internal R&D management mechanism.
Share professional knowledge and experience with partners in respective elds to promote innovation exchanges andcooperation, and jointly explore the application scenarios of new technologies (such as AI and blockchain) in the supply chaindomain via communication and exchanges with leading enterprises in big data and articial intelligence.Enhance cooperation with external technological innovation suppliers to improve R&D capabilities.
Establish a research-oriented talent business mentor management system and job rotation training program to implementthe "Professional Capacity Enhancement Roundtable Discussion" project, and stimulate internal innovation vitality via multiplemeasures such as internal competition mechanisms and incentive mechanisms. In addition, the R&D backbone personnel takethe lead to present 13 innovative practical achievements in multiple cutting-edge technical elds such as algorithms, AI largemodels, and automated application scenarios.
Uphold the core position of innovation to actively select and cultivate R&D backbone personnel with multi-disciplinary backgrounds.
According to the demands of front-line users, conduct digitalization practice training camps represented by micro-application toolssuch as ShadowBot RPA and FineBI, allowing users to establish a connection with digitalization.
Root in the front line to empower front-end users with digitalization tool applications.
Digital Project R&D Management Strategy
The Company strictly complies with applicable laws and regulations such as the Patent Law and the Trademark Law to constantly renethe intellectual property protection, ensuring that others’ and proprietary intellectual property rights are not infringed.
Information Security
With the constant advancement of digitalization transformation, the information security not only concerns the daily corporateoperations, but also becomes the corporate’s technological moat.
In 2024,the Company held patents in total, including invention patents and utility modelpatents, while the Company cumulatively held software copyrights in total, and also cumulativelyobtained trademark registrations in total.
Xiamen Xiangyu has formulated the regulations such as the Information Security Management System and the GeneralRegulations for Information Security Management, establishing an information security management structure with theInformation Security Management Committee as the highest decision-making and deliberation body, the Information SecurityWork Group as the implementation body, and the information security responsible persons of subordinate enterprises as theultimate implementation body. The members of the Information Security Management Committee are the same as those ofthe Digitalization Transformation Committee, ensuring the security of information during corporate digitalization transformationprocess.
In the event of a data leakage, the Company may encounter negative impacts such as a crisis in customer trust, operationaldisruptions, direct financial losses, and legal proceedings. Therefore, the Company comprehensively identifies the potentialrisks of data leakage and damage at all links of the data’s entire life cycle, and adopts systematic management and technicalsolutions to ensure the security and reliability of the data’s entire life cycle. Moreover, the user information collected bycorporate digitalization platform is all necessary data for offline services, transactions, and management, which does notexceed reasonable limits and is all based on the voluntary authorization of users, meeting the commercial practices. During thereporting period, the Company did not experience any major information security incidents.
Adhering to the policy of "prevention orientation, holding the bottom line, and constant improvement", Xiamen Xiangyu constantlystandardizes and refines the full-process data security management strategies from data collection, storage, transmission,usage, exchange to destruction, and it has jointly established a sound information security protection system together with aprofessional third-party institution with ISO 27001 information security management system certication, ensuring the effectiveimplementation of information security management.
Information Security Governance
Information Security Risk Management
Information Security Strategy
12726
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
6869
TechnicalMeasures
Develop specific management methods and implementation rules for various themes such as riskmanagement, incident management, cybersecurity, terminal security, and data security, and enhanceinstitutional constraints;The operation entities of "Xiangyu Smart Transportation" and "Xingxing Xiangnong" have both passed thethird-level security protection qualication ling;Establish application security testing norms, and conduct security tests on newly launched applicationsand existing applications. In 2024, a total of 20 application security tests were conducted, and security riskreinforcement was promoted;Constantly conduct information security tour inspections. Approximately 720 tour inspections were conductedin 2024, achieving risk prevention and timely response;Focus on building an active security defense system, and together with third-party professional institutions,conduct information and data security attack and defense drills, checking and supplementing corporatesecurity protection system from the perspective of attackers, and forming a summary report;Conduct information security awareness training, covering approximately 1,000 person-times to enhance theinformation security awareness of relevant personnel.The users’ personal data collected is mainly stored on Alibaba Cloud, and relevant data is also backed upand saved in the local data center;The technical measures such as access control, information encryption, and anti-intrusion and leakageprevention are used to achieve full-process information security risk prevention and control;Enhance network security protection and detection via rewalls, application security rewalls, and situationalawareness.
Information Security Training
Gather Sincerity, Build Cooperative EcosystemXiamen Xiangyu always adheres to the business operation philosophy of "creating circulation value and serving corporate growth" toactively respond to customer demands, and integrates high-quality resources to provide customers with diversied service packages,outputting integrated supply chain solutions in a customized manner.As a supply chain service enterprise, the corporate business partners include suppliers, customers, and merchants, among which,merchants are both suppliers and customers, and can be deeply cooperated at both the procurement and sales ends. Moreover, theCompany is committed to establishing long-term and benign cooperative relationships with its business partners, maximizing customervalue and job value. In addition, the Company constantly enhances the supply chain management, and focuses on building a safe,stable, smooth and efcient industrial chain and supply chain system, creating a mutually benecial and win-win value ecosystem.
Merchant Management Services
Merchants, as important partners in the Company’s business ecosystem, play a crucial role in the corporate operation and development,and the effective management of merchants is a key element in the corporate risk management. Therefore, the Company hasestablished a two-level governance structure to constantly rene the merchant management system.Merchant Governance
Merchant Two-level Governance Structure
Corporate Headquarters
Main responsible department: A main responsible departmentfor merchant credit management is established to coordinatethe merchant management work, guiding subordinatesubsidiaries to achieve merchant risk control.
Decision-making body: Xiamen Xiangyu Risk Management
Committee has established the Professional Committee ofSupply Chain Operations and its authorizer as the decision-making body.
Subordinate SubsidiariesMain responsible department: A main responsible departmentfor merchant credit management is established to coordinatethe merchant management work of all business departments,guiding and collaborating business departments to achievemerchant risk control.
First-line units: As the front-line units in contact with
merchants, the business departments cooperate withthe relevant corporate management requirements to fullyinvestigate and evaluate the credit status of merchants.
The Company constantly enhances the dynamic tracking of merchant credit information to achieve effective control on the entire cycleof merchants, and implements the hierarchical and categorized management for strategic merchants. It encourages all levels to jointlyparticipate in the maintenance of strategic merchant relationships to enhance the exibility and effectiveness of resource integration,responding promptly to merchant demands.
Merchant Strategy
The business departments investigatethe equity background, main business,industry reputation, nancial data, etc. ofmerchants. Based on actual transactionrequirements, they select a business modewith controllable risks according to themerchant credit and the transaction motiveevaluation.The nancial department of the subsidiaryis responsible for evaluating the merchant’sbusiness qualications such as invoicequalication and tax qualication to promptthe risks.The main responsible department forsubsidiary management is responsible forverifying the merchant credit, and analyzingand disclosing abnormal points in the credit.
The business departmentsproperly maintain goodcommunication with themerchants. According to internalprompts and external information,fully collect and analyze negativepublic opinions of the merchants,achieving dynamic adjustmentsto the business proposal.The main responsible departmentfor subsidiary managementregularly checks the push ofpublic opinions, travel warninginformation, and abnormalreports from the businessdepartments, and monitors thecredit changes in key merchants.
Both levelsjointly promotethe constructionof a merchantevaluation tagsystem, handlingand trackingthe abnormalmerchants, andimplement blacklistmanagementon signicantlyoverduemerchants.
Pre-event ManagementMid-event ManagementPost-event Management
ManagementMeasures
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
7071
While refining the management system, the Company enhances merchant risk management via various measures, includingenvironmental and social due diligence, dynamic management, and digitalization construction to ensure the compliance, stability, andsustainable development capabilities of partners, providing a safeguard for the supply chain security and the stable business operation.
Merchant Risk Management
The credit-granted merchants must have a promisingindustry outlook and sound nancial status. Within the past6 months before applying for credit, the first responsibleperson for business must conduct an on-site investigation anddynamically track the usage of the credit limit.
Credit merchant management
The business units need to control the implementation ofupper credit limit according to merchants’ business conditionsand turnover capabilities, so as to ensure smooth businessturnover.
Non-credit merchant management
Requirements for Classication Management on Different Merchants
Supply Chain Stabilization and StrengtheningAs a supply chain service enterprise, Xiamen Xiangyu not only pays attention to the management of upstream suppliers, but alsoattaches great importance to the management of its own supply chain security. While enhancing the procurement management, itstrictly controls supply chain risks to effectively safeguard supply security.
During the procurement process, the Company adheres to the principles of "openness, transparency, and merit-based selection".The Company and its subordinate companies have formulated relevant documents such as the Procurement Management Systemand the On-site Inspection Operation Guidelines for Spot Procurement of Staple Commodities based on their business properties toclearly dene the responsibilities of the procurement departments, promoting the standardization, processization, and efciency of theprocurement.
Supplier Management
During the due diligence and
evaluation process of merchants,
the Company focuses on
investigating the environmental
protection input, production
safety conditions, and employee
rights & interests protection
of the cooperative merchants,
and prioritizes selecting green
development enterprises to ensure
the sustainability of the supply
chain.
Environmental and social due
diligence
Actively explore new channels formerchant information to obtaina wider range of merchant creditmanagement information sources,and establish a sound public opinionmonitoring system to conduct publicopinion investigations around keymerchants. Utilize the classiedinvestigations and dynamicwarnings to detect potential risks inadvance, and take timely measuresto control such potential risks.
Dynamic management ofmerchants
Implement comprehensivemerchant management from allperspectives, and build merchant360 system to form a merchantlife cycle data kanban integratinglitigation, public opinion, credit limit,overdue, and cooperation statusmodules, providing data support forrisk control and business operationdecision-making.
Digitalization construction ofmerchant management
Merchant Management Measures
In the Logistics Supplier Management System, the Company has clearly defined the admission, assessment, and withdrawalmechanism for logistics suppliers to actively prevent logistics operation risks and optimize the structure of logistics resources,enhancing corporate trade logistics allocation capabilities and raising the overall level of logistics services.
Logistics Supplier Management
Corporate Logistics Supplier Management Mechanism
The Company has established a sound logistics supplier admission process to ensure thatthe partners meet the business requirements and possess the necessary qualifications.New suppliers must be subject to initial investigation, including credit status, managementcapabilities, and risk control of goods ownership, and will be reviewed in accordance withdomestic & foreign policies and industry regulations. Logistics suppliers also must be subjectto a secondary investigation, which is reviewed by the Logistics Management Center to ensurecontrollable risks. For urgent business, a single-ticket review & approval mode can be adopted bythe Company, however, for long-term cooperation, it is still necessary to be admitted according tothe regular investigation process.
Admission and investigation mechanism
The Company conducts classification and hierarchical management on suppliers based ontheir qualications, cooperation history, and management level. Different grades correspond todifferent cooperation standards, return visit frequencies, and risk control measures. For example,Grade A suppliers are the Company’s own or controlled entities, which can be exempted fromreturn visits, while Grade E suppliers, due to abnormal situations, are necessary to enhancetour inspections. The Company conducts dynamic adjustments on suppliers every year to ensureoptimized resource conguration.
Hierarchical and dynamic management
The Company set a clear handling mechanism for abnormal supplier situations, including blacklist and gray list. The suppliers on black list are generally prohibited from cooperation for twoyears, and can only be restored after re-investigation. The new cooperation for the supplierson gray list is suspended, and the decision to restore depends on the evaluation situation. Inaddition, the Company utilizes the abnormal feedback mechanism of logistics to monitor high-riskabnormalities in the cooperation in real time. If necessary, the logistics program will be adjustedto ensure business security.
Management on abnormalities and risk warning
During the reporting period, the number of the Company’s logistics suppliers was . The coverage rate oflogistics supplier assessment reached , and the pass rate of the assessment was .
3,646100%93.15%
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
7273
The Company implements a comprehensive due diligence and evaluation mechanism to strictly supervise its business partners interms of environmental protection, social responsibility, and labor rights & interests, ensuring that the suppliers meet corporate’ssustainable development standards. The Company not only conducts detailed reviews during the admission stage, but also continuouslytracks and assesses during the cooperation process. It takes corresponding measures against business partners that do not meet therequirements so as to maintain the stability of the supply chain and corporate’s social responsibility. Meanwhile, the Company requiresall suppliers to sign the Integrity Agreement during the cooperation.The Company attaches great importance tothe full life cycle management on suppliersand customers, covering admission,process tracking and post-evaluation,all of which focus on their social andenvironmental values and responsibilities.
In the decision-making link ofsupplier admission and evaluation,the Company considers theinput and performance ofthe cooperative suppliers inenvironmental protection,production safety, and protectionof employees’ rights and interests,which will be used as the basisfor business resource allocation,and the Company will prioritizeselecting the green developmententerprises to ensure the stabilityof the supply chain.For production & manufacturingsuppliers, especially those in high-carbonindustries, during the on-site investigation,the Company pays attention to theirenvironmental compliance issues, includingequipment environmental compliance,advanced production technology, pollutionand waste utilization design, and therectication of past environmentalpunishments.
After supplier admission,the Company continuouslymonitors their performance inenvironmental protection, andthe public opinion monitoringprogram is used to classifyenvironmental negative publicopinions as high-risk, evaluatingtheir impact and adjusting thebusiness cooperation programaccordingly.
The Company focuses on the quality ofsuppliers’ products and their responsibilitydegree to customers, understanding theirindustry reputation, and maintains a highlevel of attention to social responsibilitydeciencies such as malicious fraud,privacy infringement, or unfair competition.Once veried, the cooperation will beprohibited.
The Company pays attention to the rights &interests and labor protection of suppliers’employees, and the public channels andon-site investigation are used to understandthe working environment, productionsafety awareness, employee treatment,and internal management, evaluating thestability of human resources.
Full life cyclemanagement
Product qualityand customerresponsibility
SocialresponsibilityconsiderationEnvironmentalcomplianceconcern
Duediligence andevaluation
Continuousmonitoring
Supplier’s ESG Assessment Dimensions
Supplier Management Measures by Each Subordinate Business Sector
Implement 100% full-process supervision on suppliers, including supplier evaluation, qualication review, pre-job training, safetyinspections, and payment of employer liability insurance;Formulate the Acceptance Standards for Raw Materials and Auxiliary Materials and the Verication System for Raw Materials,Auxiliary Materials and Packaging Materials to standardize the verication process, and clearly dene the acceptance indicators,inspection methods, and disposal standards for various raw/auxiliary materials and packaging materials, ensuring the quality andstable supply of oil products.
Xiangyu Oils
Formulate the Procurement Management System for the rice processing and sales end to optimize the procurement process,and strictly implement the centralized purchase, e-commerce procurement, inquiry and tender, and other methods to improveprocurement efficiency and transparency. Meanwhile, all non-publicly tendered suppliers are required to obtain the Group’squalication certication to reduce procurement risks, ensuring the continuity and safety of agricultural product supply.
Xiangyu Agricultural Products
Establish a logistics supplier management system to form a strict full life cycle management system for logistics suppliers,and evaluate the admission qualification of some suppliers via ESG scores, carbon footprint data, and emergency responsecapabilities. Moreover, conduct regular management and optimization on different qualied suppliers, and promptly eliminatethe suppliers failing to meet the standards. Furthermore, evaluate the admission qualication of business partners and conductregular assessment to implement a dynamic assessment mechanism and exibly adjust the cooperation volume. In addition,rely on the smart logistics platform to integrate the supplier data (such as transportation trajectories, public opinion tracking),achieving shorter handling response times and dynamic management adjustments on abnormalities.
Xiangyu New Energy
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growth
and Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
7475
In recent years, the uncertainty of the global trade environment has increased, and the international trade frictions, geopoliticalconicts, local wars, and sudden "black swan" events, led to increased potential risks in supply chain management. In the commodityoperation and logistics sector, the Company focuses on goods ownership management, smart logistics, and risk control to build a safeand stable supply chain logistics management system.
Supply Chain Operation Risk Management
The Company formulates regulations such as the Management Regulations for Logistics Abnormality Feedback, theTransportation Management System, and the Warehousing Management System to clearly dene the re-sponsibilities forgoods ownership manage-ment. Moreover, the Company establishes a goods ownership risk identication network via "cross-region, cross-border, cross-industry" collaborative mechanism. In terms of overseas aspect, constantly optimize the cross-border goods ownership control mode. In terms of domestic aspect, collaborate with industry partners to enhance the on-sitegoods ownership management, strengthening risk prevention capabilities.
Establish goods ownership security management system
The Company implements classified management on high-risk transfer nodes, delivery modes, key products, and newbusiness modes, and enhance tracking and control to regularly review logistics risks, optimizing control programs. Relying onthe smart warehousing system, the Company promotes digitalized stock management to improve stock turnover efciency.Meanwhile, the Company builds a two-level auditing and inspection system to strengthen process monitoring of logisticsoperations, ensuring compliance and efciency in operations.
Optimize logistics risk control management
The Company formulates the Insurance Management Regulations to establish an insurance group for coordinating themanagement on goods ownership insurance affairs against logistics abnormalities, ensuring that the recovery mechanismcan be quickly initiated when goods ownership is damaged. For risks in business operations, ensure that full insurancecoverage and adequate insurance premiums are paid to safeguard corporate property and goods safety. Based on liabilitydivision, clarify the disposal program to increase the success rate of claims and recovery, ensuring the rights and interests ofthe Company and customers.
Rene insurance and liability recovery mechanisms
Supply Chain Risk Management Mechanism of Logistics SectorConduct the investigation and admission of logistics suppliers, and the due diligence for project-based business logisticsmanagement, and set the review and approval paths based on multiple dimensions such as whether controlling goods in thelogistics cooperation mode, and the qualication background of the sub-suppliers.Conduct "Three Unxed" warehouse inspection mode for logistics suppliers under goods ownership, logistics supplier returnvisits, market public opinion capture, tracking of abnormal logistics goods ownership, internal audit of logistics control,etc. Based on the problems identied during the above management process or changes in the operating conditions of thelogistics suppliers, dynamically adjust the cooperation program with the logistics suppliers.Establish black list and gray list management standards for external logistics suppliers, and include in the black list and graylist management on logistics suppliers with abnormal behaviors that can’t be effectively resolved, while keeping the right ofrecourse according to the responsibility division.Conduct audits and evaluations on internal logistics operation standardization, and perform assessment management onthe responsible General Managers and Deputy General Managers.Establish an insurance group to coordinate the management and effectively recourse against the insurance affairs withabnormal goods ownership.
Full-process Management of Logistics Supply Chain
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?
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Logistics Supply Chain Operation Risk Management
CaseJointly Build a Supply Chain Security Shield to Identify Overseas Logistics Risk PointsAs the internationalization strategy constantly advances, the operation andmanagement mechanisms of overseas logistics have received increasingconcern. To further support the expansion of international business andrespond to the front-line needs, the corporate’s Logistics Management Centerheld two functional safeguard sharing sessions of international logistics inOctober 2024. The sessions focused on discussing the logistics environment,policies, logistics resources, and potential risk points in multiple key regionssuch as Africa, Europe, Asia, Middle East, and Southeast Asia, and proposedtargeted localized response strategies to directly address the pain points inoverseas business operations, which attracted the participation over 700person-times.
CaseXiangyu New Energy Optimizes Supply Chain Risk Management to Enhance Supply Chain Resilience
Xiangyu New Energy collaborated with storage providers, transportation companies, customs brokers, and other partners toestablish a sound safety management system for storage and transportation, and also built a monitoring system covering theentire process. Moreover, it strengthened risk management according to the characteristics of the new energy industry (suchas lithium battery transportation safety, overseas carbon tariffs), and it requires suppliers to hold 100% of relevant hazardousmaterials certications and to conduct regular safety and emergency drills. Meanwhile, Xiangyu New Energy, according to thecharacteristics of the new energy industry, developed the personalized smart logistics platforms and integrated digitalizationservices such as network freight platforms and supply chain nance, achieving full-chain visualization and smart management.In addition, through dynamic and real-time tracking of digitalization means, Xiangyu New Energy effectively improved supplychain efciency and reduced costs, and precisely responded to customers’ diverse demands so as to effectively control supplychain risks, helping the supply chain management upgrade towards efciency, stability, and intelligence.
CaseXiangyu SOE Optimizes Procurement Management to Ensure Stable and Safe Supply
In 2024, due to tight market supply & demand and multiple acceleration of production program, the material supply of XiangyuSOE faced challenges. To effectively control the procurement risks, Xiangyu SOE classied the materials into Categories A, B,and C based on their importance to the production nodes, and set an early warning mechanism to establish a rened trackingmanagement system, ensuring the stability of key material supply, ultimately reaching the successful achievement of the annualproduction target.Facing the uncertainty of steel plate supply, Xiangyu SOE optimized the procurement management mode to standardize theprocurement process, and implemented the kanban management to strengthen process control and assessment review of steelmills, steadily increasing the steel plate delivery rate to ensure the complete supply.Meanwhile, Xiangyu SOE actively innovated the procurement mode, and locked the procurement price of steel plates in advanceaccording to the market trends and production needs. Moreover, Xiangyu SOE dynamically adjusted the procurement strategy,and the annual procurement cost was saved by CNY 187 million compared to the budget, achieving cost reduction and efciencyimprovement, which further enhanced the supply chain resilience and operational efciency.
For the production & manufacturing sector, the subordinate units of the Company actively evaluate the supply chain risks to setannual procurement targets and evaluate supplier supply risks and quality risks, and implement rapid responses to production safety,operational disruptions and supply crisis caused by major market uctuations, public emergencies or natural disasters, ensuring thesecurity and stability of the supply chain.
Training Venue
Pre-event Management
Mid-event Management
Post-event Management
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growth
and Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
7677
Improve Service Quality
The Company relies on the "supply chain service and production & manufacturing" industrial chain operation mode to implementcomprehensive quality management for products and services according to specific requirements of each business sector, and itestablishes a quality management system covering concept, strategic design, system formulation, training & education, testing andinspection, product traceability, product recall, complaint management, and qualication certication, which ensures compliance ofbusiness operations, stability of services, and reliability of products, effectively safeguarding customers’ rights & interests and the stablecorporate operation.
Quality Assurance
Supply Chain Partner
ManagementThe Company strictly implementsthe supplier admission review,and conducts comprehensiveevaluations around aspectssuch as qualications, assetstatus, industry experience,and warehousing facilities,ensuring that the cooperativeparties have stable performancecapabilities. Meanwhile, theCompany establishes a dynamicmanagement mechanism forsuppliers to conduct regular on-site inspections and return visiton performance, and optimizesthe supplier structure basedon cooperation performance toimprove the overall quality of thesupply chain.
Warehousing and LogisticsSecurity AssuranceEnhance the management ofgoods ownership, and strictlyimplement the measures such asseparate stacking and placementof goods and hanging goodsownership signs to ensure clearownership and reduce the risk ofgoods ownership disputes.Arrange the outdoor personnelof logistics management toconduct regular tour inspections,and supervise the loading andunloading process to ensure thatthe operation is controllable andsafe. In addition, the Companyestablishes a logistics abnormalityfeedback mechanism, whichresponds quickly and formulatessolutions to problems identiedduring implementation, reducingdamage to goods and transactionrisks.
Transaction Security andQuality TraceabilityEstablish a standardized contractmanagement system, andclearly dene quality standardsin procurement, storage,transportation, and deliverylinks, improving transactiontransparency. Relying on digitaltechnology, the Companyestablishes a full-chain qualitytraceability system, achieving full-process visualized tracking fromthe procurement source to thenal delivery, which ensures stableand reliable product quality.
Measures for Ensuring Supply Chain Service Quality
???
?
In addition, each subordinate unit of the Company has established a strict quality management system based on its business properties,and the sound system/regulations, refined process control, and advanced management methods ensure the safety and reliabilityof products, improving customer satisfaction. During the reporting period, 7 subsidiaries of the Company obtained ISO 9001 qualitymanagement system certication.
XiangyuAgriculturalProducts
For the rice processing and sales end, it has formulated normative documents such as the Raw MaterialStock-in and Stock-out Management System, the Production Management System, the Finished ProductPackaging Management System, and the Safety Management System for Prevention of Food Cross-Contamination, enhancing the full-process quality management. It strictly implements the raw cerealstock-in and stock-out management, workshop production changeover control, and product marking andtraceability system, ensuring that the quality of raw materials and nished products meets the nationaland corporate standards. Meanwhile, it establishes a quality inspection management system to conductstrict inspections on stock-in and stock-out cereals, raw cereals for processing, nished products, andby-products, ensuring stable and conformed product quality. Additionally, it strengthens food safety andhygiene control, and implements measures such as foreign object control in the workshop, personnelhygiene management, prevention of cross-contamination and pest & rodent control to strictly restrictthe external pollution sources, ensuring the safety of the production environment. It also implements 5Smanagement and equipment cleaning systems to improve the standardized management level of theproduction site.
Xiangyu
Aluwin
It adopts a "pre-event — mid-process — post-event" full-process control mode to ensure the safety ofgoods during storage and transportation. In the pre-event stage, it conducts on-site investigations andcomprehensive risk evaluations on logistics suppliers’ qualifications, industry scale, assets, hardwarefacilities, and management capabilities. In the mid-event stage, it arranges outdoor personnel of logisticsmanagement to conduct regular on-site supervision of loading and unloading to ensure that goods arestored according to the principle of separate stacking and placement, and it hangs the goods ownershiplabels to clarify the goods ownership. In the post-event stage, it conducts regular on-site return visits andre-evaluation of cooperative logistics suppliers to ensure that the partners constantly meet businessrequirements and safety standards.
XiangyuSOE
It enhances quality and precision management via various means, achieving the rst breakthrough of50% in the simulated loading rate of the sample ship, and the single ship saves about 57 hours of loadhook usage time, helping to shorten the dock period. The segment accuracy management realizes thevisualization of "three lines" work, and it relies on the constantly updated Xiangyu SOE Quality Manualto ensure consistency between standards and models, cultivating front-line employees to master andimplement the standards. In addition, it implements and promotes a smart quality inspection personnelmanagement system covering six production workshops. This system is rst of its kind in China and hasbeen highly recognized by European ship owners.
XiangmingOils
It formulates the Product Traceability System and the Recall System for Unsafe Food to ensure the full-process traceability of products from the source to the finished product, enhancing the food safetysafeguard capability. Meanwhile, the Recall System for Unsafe Food clearly denes the recall processwhen unsafe food is detected after entering the market, which ensures that food safety risks can bepromptly and safely addressed to prevent the further spread of non-conformed products, maximizing theprotection of consumers’ rights and interests.
Quality Management Highlights by Subordinate Units of the Company
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
7879
According to the actual situations of each business sector, the Company has established a sound customer service managementsystem to ensure timely collection, analysis, and response to customer feedback, thereby optimizing business processes and enhancingcustomer experience. The Company conducts regular customer satisfaction surveys, collecting opinions and suggestions via variousforms such as questionnaires, interviews, and online surveys, and then understands customer needs and expectations to conductreasonable evaluations of service quality, constantly improving services and products.
Supply Chain Service Sector
The Company has formulated the Strategic Merchant Management Measures to implement hierarchical management on strategicmerchants, and it deeply explores the core pain points to provide customized package services for them, fully meeting the needs ofstrategic merchants.
Production & Manufacturing SectorXiangming Oils has formulated the Customer ComplaintManagement Regulations to enhance and rene the constructionof after-sales services, clearly defining the departmentsresponsible for handling complaints regarding the corporateproducts and services, the handling procedures, and the closed-loop handling mechanism, and issues the Customer ComplaintSummary and Evaluation Report to ensure that customercomplaints are promptly and properly handled, implementinginternal improvements based on the complaints. Xiangyu SOEadheres to the policy of "Responsibility, Speed, and Commitment"to establish an after-sales service management system,responding to customer needs efciently to gain market trust.
Customer Rights Protection
Case
Conduct Customer Satisfaction Surveysto Listen to Customer Feedback
In 2024, Xiangming Oils took proactive measures toconduct customer satisfaction surveys, aiming to gaina deep understanding of the needs and feedback ofsoybean meal and soybean oil customers. Throughquestionnaire surveys, Xiangming Oils actively collectedcustomers’ opinions and suggestions, and a total of 156valid questionnaires were recovered.The survey results showed that customers highlypraised Xiangming Oils’ products and services. Amongthem, 151 questionnaires indicated "very satisfactory",accounting for 96.79%; 5 questionnaires indicated"satisfactory", accounting for approximately 3.21%; andno questionnaire indicated "average" or "unsatisfactory".Xiangming Oils listened to the voices of customers forconstantly optimizing its products and services, utilizingcustomer feedback as an important driving force forconstant corporate improvement and development.
The Company prioritizes allocating the strategic merchants
with internal resources, such as funds, logistics, and
business resources, and it also innovates management and
assessment methods to provide comprehensive support:
Share-level strategic merchants
The subsidiary constantly tracks the business dynamics andcooperation implementation of the merchants, includingchanges in credit status, major production & operationmatters, and the achievement of agreement targets, so as toadjust the service program at any time:
Subsidiary-level strategic merchants
Customer Complaint management goal of Xiangming OilsThe effective complaint rate per 10,000 tons of soybeans
processed is no more than 0.5 cases
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?
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The main responsible department is responsible forparticipating in the formulation of cooperative programand resource coordination before the event, trackingthe implementation of cooperation, promoting high-levelinteractions, and coordinating problem-solving during theevent, and reviewing the cooperation situation after the event.A senior management liaison person is in charge of maintainingthe relationship with strategic merchants, and they visit themerchants at least once a year to promote deep cooperation.
The subsidiary’s General Manager and the relevantdepartments track and supervise, and adjust the programbased on the annual cooperation situation.The responsible person of business is responsible formaintaining the relationship with the strategic merchants topromote the implementation of the program, promptly reportingchanges.
People-oriented, Compose a Bright FutureXiamen Xiangyu adheres to the concept that talents are the primary resource for corporate development, so it regards talents as themost valuable capital, and considers them as the core driving force for corporate growth. Moreover, the Company pays great attentionto the occupational health and safety of its employees, and opens up democratic communication channels to effectively safeguardthe legal rights and interests of employees. In addition, relying on the "three transformations and two supports" system, the Companybuilds a digital-driven human resources management system, including selection, cultivation, utilization, management, and employeerelationship management, so as to promote the attraction and retention of talents.
Employment and Rights & InterestsThe Company strictly complies with applicable laws and regulations such as the Labor Law as well as the applicable policies in theoperating location, and standardizes management in aspects such as recruitment and dismissal, and democratic communication tosafeguard the legal rights and interests of employees. Through an internal and external combined approach, the Company constantlyenhances internal training and external recruitment efforts, concentrating resources to strive to build a leading team, professional team,and an international talent team that is capable of doing things, doing them well, and achieving results.
Holding the principle of selecting the best candidates based on competence and integrity, the Company has formulated the RecruitmentManagement System to ensure that the recruitment process is open, fair and impartial, and it has clearly dened the standards andprocedures for annual recruitment program formulation, campus recruitment, social recruitment, internal transfer, etc., covering aspectssuch as information release, screening and evaluation, interview assessment, background investigation, approval for recruitment,probation and formal employment, etc. In addition, the Company strictly complies with the requirements of job avoidance and anti-discrimination in recruitment to ensure equal opportunities for job seekers, creating a healthy and harmonious workplace environment.The Company has established a sound personnel recruitment system, including the "competency" model for recruitment, jobqualication standards and job level system, to improve the scienticity of personnel selection and employment. Moreover, the Companyformulates talent selection standards based on job requirements and conducts targeted training for interviewers. Furthermore, itpromotes the competency model to improve the ability to select talents, and comprehensively assess candidates’ suitability for theposition via professional assessments, personality assessments, etc., ensuring the quality of talents and constantly expanding thecorporate talent pool.
Recruitment Management
During the reporting period, theCompany was awarded severalexternal employment honorssuch as the Top 100 2024 ChinaBest Employer Award by ZhaopinLimited, the 2024 ExtraordinaryEmployer by Liepin, and the MostInuential Emplovers 2025 byHaitou.
Achieved
The effective complaint rate per 10,000tons of soybeans processed was 0.475,and the handling rate for effectivecomplaint was 100%.
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
8081
Employee Composition
36.04%
63.96%
31.25%
60.56%
8.19%
40.75%
4.00%
17.47%
72.43%
30%23%
16%14%
5%9%
3%
6.10%
49.59%
9.57% 0.09%
Male employeesFemale employees
Proportion of employees by gender
Number of employees aged below 30Number of employees aged 31 to 50Number of employees aged above 50
Proportion of employees by age
Junior college or belowBachelor’s degreeMaster’s degreeDoctoral degree
Number of employees by educational
background
Junior-level managementHigh-level managementGeneral employeeMiddle-level management
Number of employees by position
Other personnel
Proportion of employees by category
Production personnelSales personnelTechnical (R&D) personnelFinancial personnel
Administrative personnelService personnel
As of the end of the reporting period, the Company had employees in total, among which, were newlyhired, the proportion of full-time employees was , and the employee turnover rate was .During the reporting period, the Company actively fullled its social responsibilities. The coverage rate of social securitycontributions reached , and a total of disabled employees and demobilized military personnel wereemployed.
The Company has always advocated an equal and diverse workplace atmosphere, and adheres to the principle of zero tolerancefor discrimination to create a harmonious and inclusive working environment. In terms of recruitment, remuneration, training, andpromotion opportunities, the Company does not discriminate or treat unfairly based on factors such as employee age, disability,ethnicity, gender, marital status, nationality, political status, race, religion, or sexual orientation. In the Xiangyu Group Charter, theCompany has clearly dened the "employment orientation" - based on ability and performance, instead of educational background,experience, identity, or rigid criteria. It insists on the principle of value creation as the rst priority, and those who create value willundoubtedly receive reasonable rewards. In the Internal Reward and Punishment System and the Remuneration Management System,it has clearly stipulated that all employees shall be equal and treated equally before corporate system.
The Company has established a strict identity verication mechanism during the recruitment and induction links. During recruitment,applicants are required to sign and confirm personal information including their date of birth, and anyone who provides falseinformation, conceals key details, or misleads the Company will be prohibited from being hired. After the approval process forrecruitment is completed, the Human Resources Department reviews whether the age meets the minimum working age requirement toensure compliant hiring. During induction, all new employees must provide original identity documents for on-site verication, and thecopies thereof are retained for archiving to ensure standardized le management. In addition, corporate’s internal audit departmentconducts regular spot checks of employee les and induction records to prevent the employment of child labor.
The Company explicitly opposes workplace harassment, and protects employees from sexual harassment, threats, and intimidationat work. In case of any related incidents, the Company will respond promptly and intervene quickly, conducting an investigation inaccordance with relevant regulations and providing professional psychological guidance to the harassed individuals, and will imposecorresponding punishments on the perpetrators to rmly safeguard the legal rights and interests of the parties involved, preventing therecurrence of such incidents.
The Company strictly complies with the provisions in the Labor Contract Law regarding the prohibition of forced labor, and it hasformulated the Labor Contract Management System and the Attendance and Leave Management System to clearly stipulate the workinghours, leave and overtime of employees, ensuring legal employment.
Equality and Diversity
Anti-child Labor Employment
Anti-discrimination and Anti-harassment
Prohibition of Forced Labor
According to the Attendance and Leave Management System, the Company implements a ve-day workweek system,and employees are not allowed to work more than 8 hours per day and more than 40 hours per week.According to various laws and regulations, the basic types of leave provided for employees include annual leave,personal leave, sick leave, work-related injury leave, marriage leave, bereavement leave, maternity leave (includingbreastfeeding leave and paternity leave), and parental leave. For employees working in external assignments or inremote locations, return leave is provided, and management rules for each type of leave are formulated.The Company encourages its employees to complete their tasks within working hours. If overtime is truly necessary,a written application must be submitted in advance and approved by the direct head. The Company arrangescompensatory time off for employees whose working hours have been extended with approval. For those who can’t begiven compensatory time off, they will be paid according to the hourly rate as stipulated by law.
Cooperate Regulations on Anti-forced Labor
Working hours
Leave rights
Overtime work
7,929974100%100%
19%1067
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
8283
The Company places great emphasis on attracting and retaining international, digital and high-end talents in the manufacturing sector.By implementing precise recruitment strategies, expanding global talent introduction channels, and providing living security and care, itprepares powerful human resources support for corporate development.
Attract High-tech Talents
CaseStandardize Employment Publicity and Guidance to Conduct Human Resources Compliance TrainingIn 2024, the Company invited lecturers from the LaborSafeguard and Rights Protection Center of Xiamen City toprovide a training session on labor law and labor contractlaw compliance for the human resources team, focusingon enhancing the ability to prevent labor risks andconduct practical operations. The training covered therequirements for standardized employment and clariedthe principle that labor relations must be establishedwithin the legally prescribed employment age range.This training enhances the legal compliance of thecorporate labor management, and raised awareness ofstandardized employment practices, providing a powerfulsafeguard for optimizing human resource managementand reducing legal risks.
Instead of educational background orexperience, the core criteria for promotion shallbe actual contributions such as technologicalbreakthroughs, work achievements, andproject benefits. Dual-channel development:
Establish a separate professional technicalchannel independent from the managementchannel, providing a dual-channel developmentopportunity, and the treatment of the professionaltechnical channel is aligned with that of themanagement channel, granting professionaldecision-making rights and cross-departmentalcollaboration authority.
Customize remuneration andappraisal incentive programfor high-end talents to provideremuneration protectionduring the integration periodor trial period and reducethe pressure of performanceassessment, and providefunctional teams to ensurethe project implementationof high-end business talentsto be lenient towards periodictemporary losses.
Coordinate resources tohelp address issues suchas employment of spouses,children’s education, andmedical needs. Assist themin applying for various talentsubsidies at the provincial,municipal, district, and freetrade zone levels, and applyingfor talent apartments, etc.Recommend eligible talentsto participate in governmenttalent programs.
Rene the promotion mechanism
Reasonable resource
allocation priority
Living security and care
Mechanism for Attracting High-tech Talents
Employment Compliance Training
During the reporting period, the Company did not experience any negative incidents related to child labor, forced labor, orworkplace discrimination.
In 2024, the Company has continuously deepened its cooperation with the co-built institutions/universities, and actively expanded newpartners. Based on the corporate development needs, the Company has established industry-university-research cooperation with theMetallurgy College of University of Science and Technology Beijing, the Mining College of China University of Mining and Technology, theCollege of Metallurgy and Materials of Northeastern University, and the State Key Laboratory of Advanced Solidication Technology ofShanghai University, cultivating specialized talents in the metallurgical, mining and bulk commodities industrial chain. By integratingthe educational and talent cultivation resources of universities and the capital, management and industrial practice advantages ofenterprises, it effectively promotes the transformation of industry-university-research achievements, creating a virtuous cycle of mutualpromotion and collaboration between professional elds and industries.
Enterprise-university Cooperative Cultivation
Other Enterprise-university Cooperation Activities
CaseA Delegation from the Education Department of Hunan Province Visited XiangyuIn December 2024, various universities in Hunan Province came to theCompany under the leadership of the Education Department of HunanProvince for a visit and exchange. The Company understood the professionalsettings and key disciplines of each university, and both sides exchangedviews on the corporate talent needs and the employment policies foruniversity graduates. In the future, the Company will actively go touniversities in Hunan to select and recruit talents, further enhancing thecooperation and collaboration with various universities in Hunan.
Communication Venue
A Delegation Led by the President of Dongbei University of
Finance and Economics Visited Xiangyu
Signed an Internship and Practical Training Base Agreement
with Dalian University of Technology
Participated in the 2024 National Hundred-University VisitingEnterprises and Job-Seeking Docking Activity in Xiamen
Invited to Participate in the "Innovative Hong Kong - International
Talent Carnival" Recruitment Event
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
8485
The Company fully understands the significance of democratic management andcommunication for the healthy corporate development, so it has attached greatimportance to giving full play to the main role of employee representatives. It hasformulated democratic management systems such as the Employee RepresentativeCongress System and the Implementation Measures for Enterprise Affairs Disclosureto constantly promote grassroots democratic construction, and promote harmoniouslabor relations. Moreover, it has promoted the institutionalization, standardization andproceduralization of democratic management work, forming a "people-oriented, jointlyseeking development" favorable corporate environment. The Company has established aLabor Dispute Mediation Committee composed of employee representatives, labor unions,and representatives from the Human Resources Department, exercising the labor disputemediation functions to safeguard the rights and interests of employees.
Democratic Communication
CaseConduct Employee Satisfaction Surveys to Address Employee ConcernsThe Company regularly conducted various employee surveys, including "Organizational Satisfaction Survey" and "PersonalDevelopment Expectation Survey". Through these satisfaction surveys, the Company understood the employees’ feelings andthoughts regarding corporate culture, systems, and management, and listened to the employees’ voices, so as to promptlyidentify existing problems and formulate improvement and enhancement plans, as well as follow up on their implementation.The most recent survey covered a total of over 500 employees from the Company headquarters and domestic platformcompanies. It focused on 20 questions across 7 dimensions to conduct survey, and the overall satisfaction score was 4.28 outof 5, falling within the high satisfaction range (4–5 points = high satisfaction). In corporate survey results, measures were furtherintroduced for the three items with the lowest scores:
Annual business meetingLeadership symposium at all levelsMonthly regular meetingPerformance feedback interviewDaily heart-to-heart talkTeam-building activities, etc.
Daily report, weekly reportSpecial reports related to dailybusiness operations, etc.
Corporate OA, Yu Xin, etc.
Face-to-face CommunicationWritten Communication
Online Communication
Rene the logistical support for the externallyassigned personnel to reduce their concernsregarding daily life.The assignees arrange mentors to guide theexternally assigned personnel, helping them betteradapt to the new job requirements and integrateinto the new environment.After the external assignment, make reasonablearrangements based on the employee’sperformance and actual situation, and guideoutstanding employees to achieve further careerdevelopment after the external assignment.
External Assignment Intentions
Constantly conduct external(local and competitors)corporate remunerationalignment, and optimize theincentive mechanism basedon the alignment result.Constantly promote equityincentive programs topromote the mutual growthof the Company and itsemployees.
Remuneration Matching
Guide managers at all levels to furtherimprove their management skills, and attachimportance to the application of "immaterialincentives" to promptly recognize and praisethe performance of subordinates.Attach importance to the spiritual incentivesfor the senior management team, and renecorporate honor incentive system constructionto promptly recognize the work performance ofsenior management.Constantly implement the psychologicalcare and guidance program for the seniormanagement team, helping them enter themanagement work with a better state.
Receive Commendations
During the reporting period, theCompany conducted "Going to theGrassroots, Listening to PublicOpinions" seminars at the frontline. Throughout the year, on-site investigations were completed,and suggestions and opinionswere summarized.While soliciting the demands ofemployees, the Company alsoactively offered suggestions andstrategies for business development,thereby helping enhance themanagement capabilities at thefront line.
Democratic Communication Channels
??
??
?
?
??
Remuneration and Welfare
The Company constantly explores and renes its remuneration and welfare structure to establish the standardized remuneration andwelfare standards as well as build a fair and reasonable remuneration and incentive system, and conducts various corporate culturalpublicity and implementation as well as employee care activities to provide a platform for employees to showcase their talents andachieve career development, helping to enhance the attraction and retention of talents.
The Company has formulated the Remuneration Management System to establish a remuneration system centered on basic salary,position salary, service tenure salary, and performance bonus, and it also implements equity incentives as a long-term incentivemeasure. The annual remuneration determination plan adheres to the principle of "salary can be as adjusted higher or lower,salary changes along position", and conducts annual position determination and salary determination to ensure that remunerationadjustments are in line with employee performance and position requirements.The corporate remuneration management strictly follows compliance standards to clearly stipulate that employee salaries shall not belower than the local minimum wage standard, and the salaries shall be paid on time and in full. For employees involved in negotiatedtermination, the economic compensation is strictly implemented in accordance with the Labor Contract Law. In addition, the Company,according to the industry market remuneration levels and corporate operating conditions, conducts internal and external remunerationalignment every year to ensure the market competitiveness and internal fairness of the remuneration system, enabling employees toshare the corporate development achievements.
The Company has established a sound performance management system, which is goal-oriented to promote the improvement oforganizational and individual performance via systematic performance assessment. Moreover, the Company has formulated thePerformance Management System and adopted various assessment methods such as BSC (Balanced Scorecard), KPI (Key PerformanceIndicators), PBC (Personal Business Commitment), and 360-degree assessment, ensuring the comprehensiveness and fairness ofperformance evaluation.
Remuneration Management
Performance Management
Rene the remuneration andwelfare system
Attach importance tocorporate culture construction
Establish an incentivemechanismEstablish a reasonable remunerationand welfare structure as well asstandardized remuneration andwelfare standards to provideemployees with better living security,helping them fully devote themselvesinto their work.
Disseminate mission, vision, corevalues and corporate spirit as well asadvocate the "Five-Star Behavior" tointegrate the culture into the work,enhancing employees’ sense ofmission and cohesion.
Establish and constantly explore ascientic and reasonable incentivemechanism, and take performanceassessment as the starting point,design multi-dimensional, andmedium- and long-term incentiveprograms for employees in differentorganizations, different positions, anddifferent levels to mobilize employees’work enthusiasm, achieving sharedbenets and risks between individualsand the enterprise.
Management Concept on Remuneration and Welfare
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
8687
The Company adheres to the concept of "priority given to value creators" to establish an objective, fair and scientic value evaluationmechanism, ensuring that corporate resources and development opportunities are prioritized towards high-performance employees.Moreover, the Company conducts the full-process management on the performance management system to achieve online operationon all links such as the formulation of target responsibility agreements, performance evaluation, performance interviews, performancefeedback and appeals, improving management transparency.To enhance the incentive effects, the Company has established a General Manager’s bonus fund, rewarding advanced groups,outstanding individuals, outstanding contributors and personnel from functional departments. Meanwhile, the Company constantlyoptimizes the performance assessment mechanism, and implements differentiated assessments for different business modes,ensuring that the assessment indicators are effectively connected with strategic tasks. In recent years, the Company has optimized theperformance allocation mechanism via external alignment and internal review, and claried the assessment boundaries to empowereach business unit to exibly use assessment tools, promoting constant team growth.
The corporate performance management covers the employees at all levels, and all regular employees are required to participate inperformance assessment from the moment they become regular staff. Moreover, the assessment cycle covers monthly, quarterly, semi-annual, and annual periods, and different job characteristics are used to formulate differentiated assessment standards. Furthermore,during the assessment process, the Company encourages the managers and employees to take performance interviews, analyzingperformance results and clarifying improvement directions, so as to enhance employees’ work capabilities and career development.Besides, the assessment results not only affect the distribution of performance bonuses but are also closely linked to promotions, salaryadjustments, merit awards, and training needs. Noticeably, the nal assessment results for management positions are also linked to theorganizational performance of the Company and the department to ensure the scienticity and strategic consistency of the assessment.In addition, the Company encourages employees to raise objections to the assessment process and results, and has established aperformance appeal mechanism, so employees may provide feedback to their supervisors, human resources department, or corporatemanagement team, ensuring the fairness of the assessment.Employee Incentives
CaseImplement Equity Incentive to Share Development Achievements with Employees
To enable employees to better share the development achievements of the Company and achieve the common developmentof individuals and the organization, the Company launched two equity incentive programs in late 2020 and mid-2022, and theincentive targets covered the core management personnel of the Company and the core management team of its subsidiaries,highlighting "high incentives and high requirements". The total incentive amount accounted for nearly 8% of the total sharecapital, and the incentive targets included over 1,000 core management personnel and front-line business team members.It was the rst state-owned enterprise in Fujian Province to launch a composite equity incentive program of "stock options +restricted stocks", taking the rst step in building a long-term incentive mechanism.
Employee Incentive Mechanism
Encourage employees to actively participate in various job skill certifications at the national,provincial, municipal and industry levels.Training & certicationexpense reimbursement
It is used for rewarding annual advanced teams and individuals, year-end bonuses for functionalpersonnel, and rewarding outstanding contributors, which can encourage work enthusiasm whileproviding reasonable rewards to high-performance employees.General Manager’s bonusfund
Encourage employees to utilize internal and external training resources to enhance their knowledgeof corporate business and management.
Employee learning growthaward
Combine the interests of shareholders, the Company and employees to stimulate the entrepreneurialenthusiasm of the management team.Equity incentive
The Company offers excellent welfare treatment to all employees, including but not limited to social insurance, welfare leave, holidaywelfare, and a wide range of cultural and sports activities, which helps enrich the cultural life of employees to enhance their sense ofgain and happiness.
To enhance employees’ sense of belonging, the Company has been vigorously creating the "family culture", conducting various employeeactivities such as home visits and open days for families during traditional festivals like the Spring Festival and Mid-Autumn Festival, soas to maintain harmonious and stable employee relations. In terms of hardware facilities, the Company actively listens to employees’demands and optimizes the working environment. It has successively organized improvements to the tea room, replaced waterpurication equipment, added multi-functional coffee machines, opened the employee reading room, the mother-and-baby room, andbeautied the ofce environment, creating a harmonious and warm workplace where employees can feel corporate greetings and care.In 2024, in response to the demands of the majority of employees, the Company newly implemented parental leave to meet theparenting needs of employees raising children aged under 3, helping employees balance work and family life to alleviate their concerns.
Care and Welfare
Case
Courageously Combat Against High Temperatures to Implement Heat Prevention and Cooling ServiceSecurity WorkThe heat prevention and cooling service work in 2024 lasted for a long time, and the temperatures above 32℃maintainedfor 71 days, posing a severe challenge to the front line of production. Under the high temperature difculties, all subordinateunits of the Company actively carried out high temperature relief activities. Xiangyu SOE promptly adjusted the quantity andvariety of cooling supplies, distributing 11,000 buckets of plum syrup, 173,500 bottles of mineral water/salt soda water, and123,200 pieces of ice rod, and the adequate logistical support alleviated the impact of high temperatures to reduce the risk ofheatstroke, ensuring work safety and production stability.
Corporate Welfare System
RegularWelfares
CharacteristicWelfaresCommercial insuranceEnterprise annuity
Paid leaveSpecial subsidies
Housing provident fund
Basic social insurance
Legal holiday welfares, etc.
Birthday welfaresEmployee’s physical examinationEmployee gymEmployee cafeteria
Insurance for overseas employeesLabor union visitsSpring Rain FundEmployee’s psychological assistanceprogram, etc.
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growth
and Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
8889
The Company advocates the concept of "happy work and healthy living" to systematically promote the construction of a happy Xiangyuhome atmosphere, and carries out various cultural and sports activities to drive all employees to unite and reach a consensus ondevelopment, injecting cultural soft power into corporate’s high-quality development. In 2024, the Company focused on caring foremployees and held a series of cultural activities around important festivals such as the Lantern Festival, Women’s Day, Children’sDay, and Mid-Autumn Festival, and carried out the "Yu See Beauty" series of cultural activities to enhance the corporate cohesion andcentripetal force; it also coordinated to erect a cultural cultivation platform for promoting the establishment of employee interest clubssuch as Tai Chi, basketball, table tennis, badminton, football, and foreign language, which promotes the organizational integration andthe vitality of teams, transforming the corporate culture into a vivid practice that enhances employees’ sense of belonging and booststeam cohesion.
Cultural and Sports Activities
Case"Spark Legacy" Cultural Lecture Series ActivitiesSeries ActivitiesIn order to make the cultural achievements of Xiangyu effective andapplicable, and to promote deep and practical implementation of culturalpractices, since 2023, the Company has actively carried out the "SparkLegacy" cultural lecture series activities. The outstanding employees fromthe corporate headquarters and various investment enterprises engaged inintense debates on the topics, demonstrating the innovative thinking and theyouthful power of eloquent speech.
Case"Yu See Beauty, Join Spring Date - Pay Tribute to Remarkable Women" Women’s Day Series ActivitiesOn 8 March, Women’s Day in 2024, the Company held a series of funny activities under the theme of "Yu See Beauty, Join SpringDate". The corporate headquarters organized ower art DIY and invited employees to watch the "Versatile Women" talk showto convey the voices of women; and several subordinate companies used "owers" as the medium to send festival greetings tofemale employees, and held activities including romantic rowboats, tea brewing, and DIY baking, allowing employees to releasetheir tenderness and creativity during their busy work, so as to encourage female employees to be unique themselves.
Talk Show Activity
"Environmental Protection and Low-
Carbon" Theme Debate
Flower Arrangement Activity
Sports Interest Activities
Festival Entertainment Activities
"Chase Dreams in Youth, Dominate in Green Field"
Football Competition
"Win with Love for Table Tennis" Table Tennis Competition
"Yu Together with You, Yu See Beauty"
Children’s Day Activity
"Yu See Beauty, All Things Flourish underDragon" Spring Festival Activity
"Yu See Beauty, Full Moon and HappyLove" Mid-Autumn Festival Activity
"Cyan Emerges from Basket, Burning Power isUnstoppable" Basketball Competition
"Exercise Ignites Vitality; Unity Creates Future" Badminton
Competition
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growth
and Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
9091
Training and DevelopmentThe Company conducts talent selection and training based on capabilities and performance, and it creates channels and platformsfor the growth of value creators, establishing a systematic and multi-level talent cultivation system to promote the common growth ofthe enterprise and its employees. The Company adheres to the assessment principle of "morality, ability, diligence, performance, andintegrity", and it also strives to provide more opportunities for those who take responsibility and achieve results in the front line, specialpositions, and strategic projects.
The Company has established a "Three Verticals and Three Horizontals" talent cultivation system, covering three levels: senior, mediumand junior, and it also provides customized cultivation for employees in the new tenure, current tenure, and transition period. The focusis on the cultivation of management trainees, and three years are taken as a cycle to cultivate a young middle-level team with highinternal drive and competitive awareness via the competition mechanism, job rotation training, and special projects. Moreover, theconstruction of key position teams is combined with talent inventory, personal development plans, and mentorship to optimize the agestructure of the management team, and the management and business talents with comprehensive capabilities are cultivated via cross-departmental job rotation and overseas training.
Talent Cultivation System
Group’s new seniormanagement trainingTake orientation:
Entrepreneur spirit/corporate culture/strategicthinking/comprehensiveplanning/innovationand transformation/organizational building/leadership
Senior Management
Digitalization training
class
Middle-level development class
(Group)
"Three Horizontals and Three Verticals" Talent Cultivation and Training System
To enhance the employee training management, the Company has formulated regulations such as the Employee Training ManagementSystem and the Internal Trainer Management Regulations to clearly dene the responsibilities and authorities of each departmentregarding training. The Company closely focuses on the two major business priorities: corporate business transformation andmanagement efciency enhancement, and concentrates on three main lines: business transformation empowerment, managementempowerment, and youth talent cultivation to innovate the training methods and approaches, integrating training with actual operationsto create the organizational capabilities required to win the market.
Employee Training Management
1.Organize the Y.E.S International Elite Class
Training to select young backbones with potentialfor overseas business development, and providetraining and empowerment in overseas businessdevelopment methodologies and skills. Startingfrom the corporate’s main business sectors anddriven by real business cases in target markets,integrate training with actual operations toinspire international thinking among trainees andcultivate business expansion capabilities.
2.Provide empowerment for key overseas
market regions (focusing on key regionssuch as Africa and Southeast Asia) to offerintelligence information and methodologiessuch as industry chain maps, market analysisand opportunity exploration, and risk avoidanceto the international business team. Root in themarket to enhance the business team’s ability toconquer international markets.
3.Conduct industry transformation and upgrade
workshops of senior management of business,inviting divisional General Managers of the mainproduct sectors to share aligned research casestudies, and identify and grasp breakthroughdirections from an industrial chain perspective,inspiring transformation thinking of seniormanagement of business.
4.Organize the rst Supply Chain Business Innovation Competition to upgrade the talent cultivation mode. With the goal of two-
year actual business transformation and upgrade, conduct practical business method empowerment training, and provide excellentbusiness study partners to carry out guidance and exchanges at the same time. Integrate training with actual operations toinspire business thinking, cultivating talents who understand the industrial chain and supply chain to contribute to the businessbreakthrough.
Business Team Training
International Elite Class Training
Empowerment for Key Overseas Market Regions
Transformation and Upgrade Workshops of Senior Management of Business
Understand method:
Enterprising spirit/global vision/teambuilding/communicationand coordination/riskmanagement
Optimize technique: Culturalintegration/executionability/professional quality/job competence
Middle-level
Grassroots-level
Lingxiang Program(New senior managementtraining)
Qixiang Program(New middle-level training)
Chenxiang Program(Campus recruitmentnew employees andmanagement trainees)
Job qualication series training +position examinationIntegration training forsocially recruited newemployeesNew tenure
Current tenure
Corporate management training class
(Group)Senior management rotation training class
(Group)
Advanced managementtraining class(Group)
Youth cadre training
class(Group)
Feixiang Program(Senior management
echelon training)
Chixiang Program
(Grassroots-level
backbone training)
Transition period
Special training for business & functional
senior managementCapacity enhancement training
Business manager
class
Administrativemanagement classOperation manager
class
Safety management
class
Logistics manager
class
Equipment and engineering
management class
Financial manager
class
Board secretary
training class
Special class of risk
control
Human resources
classStrategic investment
class
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
9293
1. Upgrade the management trainee training mode to enhance the daily summaries and optimization thinking of management
trainees. Conduct management trainee empowerment training based on the common needs of management trainees, and add atopic presentation session for management trainees to enhance the daily analytical summaries and work optimization thinking ofmanagement trainees.
2. Organize mentor empowerment workshops to help management trainee mentors master scientic communication and guidance
methods, and systematically compile an exclusive growth manual for mentors to integrate the required knowledge and skills as wellas guidance techniques into daily-used items, thereby promoting the growth of young talents better.
Management Trainee Cultivation and Training
Case"Xiangyu Cloud Classroom" Online Learning Platform
To enhance the training and development of employees, the Company has established the "Xiangyu Cloud Classroom"online learning platform, which serves as a centralized repository for general management knowledge of the Company andan integrated platform for training information and learning management, providing convenient functions for various rolessuch as managers, mentors, lecturers, and learners. The platform’s courses cover multiple modules such as Party buildingculture, general capabilities, functional specialties, management capabilities, benchmark learning, and system publicity andimplementation, totaling 397 courses. It integrates 20 thematic learning windows such as training management functions,internationalization, financial management, operation management, and logistics management, effectively improving thesituation where "courses could only be pushed manually by training organizers or searched for independently, resulting inscattered acquisition of course information", so that the training and learning are more convenient.
During the reporting period,the total training hours for corporate employees reached hours,with an average of hours per person;and the Company conducted a total of training sessions throughout the year,involving participants, and the employee training coverage rate reached .
Picture of Xiangyu Cloud Classroom
1. Organize training for new senior management to inspire them to successfully undertake role transitions, and emphasize team
management to break the conventional thinking patterns, helping new cadres take the rst step steadily.
2. Organize comprehensive ability enhancement training for new
middle-level cadres (MTP) to empower 153 individuals, laying asolid foundation for the management of middle-level cadres.
Training for Middle and Senior Management
3. Starting from management reserve positions of domestic
and overseas platform companies, the aim is to select a groupof talents who have a high willingness to be externally assignedand are committed to growing together with the Company. Inthe short term, the talent inventory and internal competition areused to quickly identify the candidates; in the middle and longterm, conduct 2 to 3 years of training empowerment, job rotationpractice in different positions, and training in the positions atcorporate headquarters or platform companies to reserve aplatform management reserve team, ensuring a continuoustalent echelon.
3. Conduct special empowerment for new employees’ induction,
focusing on basic knowledge of the industry such as culturalintegration, career growth, industry overview, business model,and logistics resources for empowerment. The course introducesa practical sand table of supply chain, so trainees can simulateparticipation and experience the main links of supply chainoperation, enhancing their understanding and comprehension ofthe business mode.
Regarding employee promotion and development, the Company has formulated the Guidelines for the Management of Organizationaland Position Class Systems to establish a dual-channel promotion mechanism of "profession and management", clearly dening thestandards for talent selection, evaluation, and appointment. Moreover, the Company constantly optimizes the career development pathsof employees, matching job requirements and optimizing team conguration to build the thousand-person echelon talent pool, and itconstructs a dynamic adjustment mechanism to match business development needs, creating a diversied talent utilization mode.
Employee Promotion and Development
Clarify the rights and responsibilities relationshipamong units at all levels in the organization, and fullygrant authority to each sector company to clearly denethe division of management rights and responsibilitiesfor various aspects such as personnel appointment& dismissal, remuneration & performance, andproduction & operation, further supplemented by theassessment of team building and talent cultivationindicators to provide basic security for the appointmentand management of talents in each unit anddepartment.
Dene the promotion mechanismSmooth the promotion channels
Provide employees with dual promotion channelsof profession and management to broaden thedevelopment paths for employees, and achieve thematching between individuals and positions via pre-work analysis and personnel assessment beforepersonnel allocation. Conduct dynamic optimizationand allocation of personnel, and integrate methods andapproaches such as transfer, promotion, demotion, androtation to constantly stimulate the vitality of the talentteam.
Talent Selection Mechanism
Comprehensive Ability Enhancement Training for Middle-level
Cadres
Management Trainee Training
56,735
16.24
3,49344%
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growth
and Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
9495
Health and SafetyThe Company has always adhered to the core HSE value concept of "Safety First, Environment Paramount, People-oriented, EquipmentIntact", and has taken the policy of "People Orientation, Prevention First, Risk Identification and Pre-control, Create a HarmoniousSafety Environment, and Take a Sustainable Development Path" to pursue the strategic goal of "No Accident, No Pollution, No Loss,Establish a Respected Image of a Supply Chain Investment & Operation Service Provider". The Company focuses on two main worklines: implementing the safety management system effectively and enhancing the safety management security capabilities, and it alsoadheres to the principle of "Management, Training, Equipment, and Shift" to ensure that the safety production responsibility is effectivelyimplemented at all levels. Meanwhile, based on the principle of "not lower than the safety production target indicators of the previousyear to reflect constant improvement", the Company formulated the 2024 occupational health and safety work goals, ensuring theconstant improvement of safety performance.
2024 Occupational Health and Safety Management Goals
No work-related injury or death occurred in the Company, with therate of minor injuries controlled within 1‰
No serious or fatal personal injury accident,
with the rate of minor injuries controlled within
3‰
No re-related accident, and the intact rate of re-ghting facilitiesreached over 98%
No re-related accident
No major economic loss accident occurred, and all types ofaccident losses were within the budget range
No accident resulting in direct economic
losses exceeding CNY 1 million
No group incident occurred, and social stability work wasimplemented effectively
No incident involving social stability
All HSE compliance rectication measures were completed on time,and the completion rate of rectication reached 100%
Completion rate of HSE compliance
rectication was 100%
No food poisoning incident occurred, and the qualication rate offood hygiene inspections in the cafeteria was 100%
No incident causing food poisoning involving
more than 3 people
HSE system training covered all employees, and the awareness andimplementation of the HSE system by employees were signicantlyimproved
HSE system publicity and implementation were
effective
In terms of safety production, the Company has established a "1+3+X" HSE management system framework. It has formulated systemdocuments such as the Health, Safety and Environment Management Manual, the HSE Responsibility System and Target ManagementProcedures, and the Occupational Health, and Safety and Environment Education and Training Management Procedures. Moreover, ithas established a Safety Production Committee to deepen the integration of the system and enhance the responsibility implementation,ensuring the effective implementation of all policies and measures, and it conducts constant policy updates as well as the continuousimprovement and solidication by organizations at various levels, constantly paying attention to and safeguarding the occupationalhealth and safety of employees. In addition, the Company constantly enhances the emergency management, establishing an EmergencyManagement Committee and formulating the Emergency Management and Accident/Incident Management Procedures and the OverallEmergency Plan for Emergencies, and regularly conducts safety emergency drills to test the feasibility of the corporate emergency plansand the actual operational skills of employees, laying a solid foundation for building a safer working environment.
Safety Production Management
Set the 2024 annual occupational health and safety work goals, and specically manage relevant indicators such as work-relatedinjury accidents, accident hazard rectification rate, occupational diseases, occupational health examination rate, and safetytraining education, effectively ensuring the occupational health and production safety of corporate employees.
Xiangming OilsConduct safety publicity, education and training precisely to further promote the creation of standardized safety managementshifts, and constantly optimize the "dual system" construction to strictly enforce the permission system for hazardous operations,further improving the safety environment at the work site.Xiangyu SOE
Establish a sound safety management system, appointing a dedicated safety manager and enhancing the implementation ofsafety regulations, while organizing regular safety inspections and hazard screenings and establishing a punishment mechanism.
Xiangyu Aluwin
Highlighted Measures for Safety Production Management in Each Subsidiary
Safety Production Management Framework
The General Manager serves as the head, with other members serving as deputyheads, and this Committee is composed of the director, deputy directors, andmanagers of functional departments.It is responsible for formulating/revising the medium- and long-term corporateHSE development planning, and formulating annual HSE goals and planning.It also supervises the decomposition of annual HSE work goals and indicatorsof subordinate subsidiaries, and implements the performance assessment.
According to regulatory requirements and the division ofresponsibilities, they formulate the HSE responsibility list for allemployees, the performance list, and the individual safety actionplan table, and decompose layer by layer according to HSE annualgoals.
SafetyProductionCommitteeSafety ProductionCommittee Ofce (SafetySupervision Department)
The Company and Its Subordinate
Subsidiaries
2024 GoalsCompletion Status
According to the production and operation situation, hold monthly safety education and publicity meetings to enhance safetyprevention capabilities; for the operation of hazardous products, strictly manage the business qualifications scope of theoperating units and the professional qualications of the employees in accordance with management requirements, and organizeregular qualication examinations to ensure that employees hold valid certicates for their positions.
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
9697
The Company attaches great importance to the construction of safety culture to cultivate the "soft power" for the corporate safedevelopment. The Company regularly holds ofine training sessions for safety backbones and conducts safety examination preparationlectures to constantly enhance the safety professional quality of employees. According to the requirements of the Work Program forSpecial Inspection on Safety Production and Supervision on Construction of Safety Management Standardization Shifts of XiangyuGroup, it constantly promotes the supervision work of safety management standardization shifts, creating 4 outstanding shifts such asRizhao Xiangming Oils Rening Shift and Suihua Xiangyu Jingu Agricultural Machinery Repair Shift.
Shift safety standardizationconstruction
Good operation andaccident warning
Safety cultureconstruction planningFormulate the implementationadvice for shift safetystandardization constructionSelect the pilot for shift safetystandardization constructionRecommend the benchmarkfor shift safety standardizationconstruction
Promote excellent achievementsof good operation practicesImplement accident and incidentwarning educationImplement positive incentives andnegative notications
Prepare the safety cultureconstruction based on thecorporate culturePlan to train on distinctive safetyculture conceptsAdvance visual management ofsafetySafety Culture Construction
During the reporting period,the subsidiaries of the Company conducted hours of training on occupational health and production safety,and held various safety emergency drills;the coverage rate of employee work-related injury insurance reached ;and the input on safety production liability insurance exceeded .
Safety Production TrainingEmergency Supplies ReserveEmergency Drill Site
????
?
??
?
?
The Company attaches great importance to the physical and mental health of itsemployees, and implements care and protection measures effectively. Every year, theCompany provides free physical examinations of health for all employees, and insuresthem with commercial insurance. Moreover, it also participates in the municipal workers’medical mutual assistance security program, and issues membership service cardsfor labor union members to raise the level of medical welfare security. In 2024, theCompany further optimized the physical examination welfare, raising the standards andadding special examinations for cardiovascular and cerebrovascular diseases, and italso docked with professional hospitals to provide interpretation of physical examinationreports by deputy director-level physicians, meeting the diverse health needs ofemployees.In terms of occupational disease prevention and control, the Company strictly complieswith laws and regulations such as the Law on Prevention and Control of OccupationalDiseases and the Regulations on Occupational Health Management in Workplaces,and formulates the Occupational Health Management System to assess occupationaldisease hazard factors. Moreover, it provides standard labor protection supplies for riskpositions, such as dust collectors, mufers and other protective facilities, and conductsregular maintenance to enhance operation protection. In addition, the Company alsoprovides pre-job, on-job and off-job physical examinations for employees at risk ofoccupational diseases, and establishes "one file for one person" occupational healthmonitoring archives, comprehensively ensuring the occupational safety of employees.To alleviate employees’ work pressure, the Company launched the EAP (Employee Assistance Program) in 2020, providing 24-hourpsychological consultation hotline, group guidance, one-on-one consultation and mental health lectures, and has helped over 200employees alleviate psychological stress. In 2024, the Company relied on the EAP project of Xiangyu Group to constantly provide uniedmental health support, further enhancing the employee’s psychological care system.
Occupational Health Management
During the reporting period,the corporate coverage rateof physical examinations onoccupational disease riskpositions was .A total of employeesparticipated in physicalexaminations of occupationaldisease, and no case related tooccupational diseases was found.
100%
The Company has installed AED rst-aid equipment on the ofce oor, and has alsoassigned professional rst-aiders to ensure the safety of employees’ lives.
20,698
100%CNY 30,000
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
9899
Take Responsibility, Share Development AchievementsXiamen Xiangyu is committed to building a sustainable development ecosystem that benefits all parties. While expanding itsinternational vision, deepening the integration of industry-university -research, and promoting industry progress, it always keeps in mindits state-owned enterprise mission, so it integrates its development with the national rural revitalization strategy to promote agriculturaleconomic development, forming a development model featured by virtuous cycle of commercial value and social value.
Industry ExchangeOpen cooperation is a key factor in promoting innovation and common development. The Company conducts extensive cooperation andexchanges to gather professional forces from various elds, sharing excellent experiences and exchanging technical achievements, andjointly explores new opportunities in the supply chain industry with industry-related parties, working together to promote innovation andprogress in the industry.
CaseOrganize Supply Chain Summit to Focus on New Quality Productivity of Supply Chain
In September 2024, the Smart Chain New Journey
Supply Chain Summit, hosted by Xiangyu Group and
organized by the Company, was successfully held
at the Xiamen International Convention Center. This
Summit, as a sub-forum of the 2024 Supply Chain
Cooperation Innovation Conference organized by the
Xiamen Municipal Government, was themed "Green
Smart Chain, Moving towards New Directions", gathering
over 200 people including experts in supply chain and
representatives for enterprises & financial institutions
from both domestic and international sources, and they
jointly explored the trends of supply chain digitalization
and low-carbon transformation. This Summit conducted
deep discussions around the new quality productivity of
supply chain, and the Chairman of the Company stated
that the Company would drive the upgrade of supply
chain services via digitalization and intelligence, working
together with global partners to build an efcient, green,
and sustainable supply chain ecosystem.
"Green Smart Chain, Moving towards NewDirections" Summit Venue
During the reporting period, the Company participated in industry forums and technical exchangemeetings, including the China International Supply Chain Expo, the China International Import Expo,the China International Fair for Investment & Trade, and the Forum on China-Africa Cooperation.
Case"Chain" Enjoying Opportunities to Present at the National Supply Chain Innovation Exhibition
In September 2024, the 24th China International Fair for Investment & Trade was held inXiamen. As a benchmark enterprise in the industry, the Company was invited to participatein the initially established supply chain innovation exhibition area, and highlighted thepractical achievements of the integration and innovation of supply chain and industrialchain, attracting guests from home and abroad to stop and exchange ideas. During theexhibition, Li Gang, the Director of the Department of Circulation Development of theMinistry of Commerce, visited our exhibition stand and highly afrmed our achievementsin promoting green development and digital smart innovation. The Company won the rstprize in the enterprise group competition and was awarded the "Best Organization Award"by virtue of our comprehensive strength. This event effectively helped the Companydeepen global resource channel docking, injecting new momentum for promoting high-quality development of the industrial chain and supply chain.Case
Xiamen Xiangyu Presented in the China International Supply Chain Expo to Promote Global SupplyChain CooperationIn November 2024, the 2nd China International Supply Chain Expo was held in Beijing.The Company responded positively to the call for global supply chain cooperation, andshowcased more diversified, digitalized, and green supply chain innovation solutions.This Expo attracted over 600 domestic and foreign enterprises to participate, and ourexhibition stand incorporated "Digital Smart Blue" and "Xiangyu Red", highlighting ourcorporate culture spirit. On the rst day of the Expo, our exhibition stand attracted a largenumber of overseas and domestic merchants for visits and negotiations. The Companydisplayed the innovative practices in the integration between digital smart technology andindustries to promote the supply chain upgrades, initiating a new dialogue with globalpartners. The Company will constantly accelerate its global layout to deepen industryresearch, and promote smart and sustainable supply chain development, jointly buildinga more resilient, efcient, and dynamic global supply chain.Case
The Company Presented in the China International Import Expo to Promote Global Supply ChainDevelopment
In November 2024, the 7th China International Import Expo was held in Shanghai, and the Company once again participated inthis Expo with its supply chain innovation solutions under the new "Dual Circulation" development pattern. The corporate leaderdelivered a keynote speech at the "High-Quality Development Exchange Meeting of Modern Circulation Enterprises", sharingcorporate experiences in promoting the "Belt and Road" construction and exploring international markets. During the Expo, theCompany signed a strategic cooperation agreement of USD 260 million with a West African titanium ore enterprise, promotingthe construction of a global service system for the titanium industry chain. The Company will constantly deepen internationalcooperation to promote the modernization of the industrial chain, and to drive global market prosperity.
Supply Chain Innovation Exhibition
The 2nd China International Supply
Chain Expo
Corporate Leader Delivered a Speech at the "High-QualityDevelopment Exchange Meeting of Modern Circulation Enterprises"
Strategic Cooperation Signing at the 7th China
International Import Expo
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
100101
Case
Participated in the China (Fujian) - United States Economic and Trade Cooperation ExchangeConference and Successfully Signed a ContractIn March 2024, Xiangyu New Energy participated in the China(Fujian) - United States Economic and Trade Cooperation ExchangeConference in Los Angeles, Portland, and Honolulu of United States,and signed a strategic cooperation agreement with the Americanphotovoltaic module manufacturer SEG Solar Inc. to conduct deepcooperation around photovoltaic products such as cells and modules.This signing will fully leverage the advantages of both parties in thesupply chain and manufacturing sector, and strengthen the synergyof the green energy industrial chain, promoting global sustainabledevelopment. The Company will constantly expand internationalmarket to deepen its global supply chain layout, and contribute tothe development of the new energy industry to promote industryexchanges and cooperation.
The Company actively leverages its advantageous position in the industry to lead the development of industry norms, and participatesin the formulation of national, industry and group standards to contribute its efforts to the technological progress and industrialupgrade of the industry. The two standards whose formulating it participated in, namely Basic Requirements of Digital Warehouse andthe Evaluation Specification of Digital Warehouse issued by the National Development and Reform Commission, provide importantguidance and reference for industry development, which further expands our inuence in the industry, helping promote the industrytransformation towards digitalization and intelligence.
As of the end of the reporting period,the Company has participated in the formulation of national standards, industry standards,and group standards.
Release
Time
Standard Name
StandardCategory
2019.2
Technical Specication for Green-Design Product Assessment – Iron Concentrate Comesfrom Iron Ore Tailings
Group Standard2022.7Basic Requirements of Digital WarehouseIndustry Standard2022.7Evaluation Specication of Digital WarehouseIndustry Standard2023.1Classication and Evaluation Indicators of Supply Chain Financial Service EnterprisesGroup Standard2023.4Requirements for Transaction Matching Services on Internet Road Freight PlatformsGroup Standard2023.8Evaluation Index for Green Logistics of Logistics Service ProviderIndustry Standard2023.8
Greenhouse Gas Emission Accounting and Reporting Requirements for LogisticsEnterprises
Industry Standard2023.9
Ships and Marine Technology - Performance Test Procedures for LNG Fuel Gas SupplySystems (FGSS)
National Standard2023.12Basic Requirements of Digital Steel WarehouseGroup Standard2023.12Basic Requirements of Digital Coal WarehouseGroup Standard2024.1Supply Chain Finance Group StandardGroup Standard2024.4Evaluation Specication for Digital Level of Enterprise Supply ChainGroup Standard
Standards Participated by the Company in Formulation
CaseParticipate in the China-South Africa Economic and Trade Forum to Deepen the Layout in Africa
In September 2024, the Company was invited to attend the China-South Africa Economic and Trade Forum, and the corporate PartyCommittee members, Discipline Inspection Commissioner, andDeputy General Manager were invited to attend and deliver a speech.In recent years, the Company has actively explored the markets inSouth Africa and Africa. In 2023, the volume of business in Africaexceeded 12 million tons, covering elds such as metal minerals andagricultural products, involving multiple African countries. To deepenthe regional layout, the Company will establish its rst African localcompany in Johannesburg, serving as a "bridgehead" for supplychain services to promote the deep integration between regionalresources and business. In the future, the Company will constantlyenhance the economic and trade cooperation with South Africa andAfrican countries, and expand higher-level and broader developmentopportunities, jointly promoting prosperity and progress.
Invited to Participate in the Thematic Discussion
Social ContributionThe Company has always been committed to fulfilling its socialresponsibilities to actively promote the development of publicwelfare undertakings, and it encourages employees to payattention to social issues and actively participate in variousvolunteer activities, forming a positive social responsibility culture.The Company regularly organizes the public welfare training andpractical activities to stimulate the enthusiasm of its employeesfor public welfare and enhance their awareness of social service,and the Company takes practical actions to contribute to society,demonstrating the corporate sense of responsibility.
During the reporting period, the Companyconducted employee volunteeractivities, with participants in total.
CaseClean Home for Community and Street Cleanup Activities
The Company organizes its employees as volunteers to conduct regular community
clean-up activities, removing garbage from the streets and clearing illegal
advertisements, and maintains and beautifies the public facilities to take practical
actions for supporting the improvement of the urban environment. The volunteers not
only enhance the environmental awareness of community residents during the clean-
up process, but also convey the concept of green living via interaction with community
residents, increasing public attention to environmental protection. This activity not only
improves the urban appearance but also promotes a positive interaction between the
Company and the community, enabling employees to understand the importance of
social responsibility more deeply.
Volunteer Service Team
China (Fujian) - United States Economic and Trade
Cooperation Exchange Conference
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
102103
CaseCare for Special Groups to Regularly Visit the Groups in Difculties
The Company has been constantly concerned about the groups in difculties in the community. During the Spring Festival andthe August 1st Army Day every year, it organizes visit activities to send care and gifts to troops and ofcers of military-civilianjoint construction units; during the Double Ninth Festival, it visits the elderly and Party members in difculties in the community,providing them with living support and spiritual encouragement; during the New Year’s Day, the Spring Festival and the "July1st" holiday, it visits the paired families in difculties, sending them necessary daily necessities and expressing corporate care.The Company conducts these constant public welfare actions to actively fulll social responsibilities, demonstrating its care andsupport for the groups in difculties.
Every year on the Double Ninth Festival, the Company went
to the jointly-built community to conduct visits for elderly
Party members and those in difculties
AED Heart Emergency Rescue Market Volunteer Service
Every New Year’s Day and Spring Festival, and on "July 1st",the Company went to the paired families in difculties for
caring visits.
CaseAED Heart Emergency Rescue Market Volunteer Service to Enhance Public First-aid Skills
In November 2024, Xiangyu Aluwin actively responded to corporate’s "11.28 Public Welfare Day" initiative to organize the AEDHeart Emergency Rescue Market Volunteer Service activity, providing rst-aid knowledge training and guidance to the public.The on-site explanations and practical operation drills were used to popularize AED usage method and cardiopulmonaryresuscitation skills, enhancing the public’s emergency rescue ability to respond to sudden cardiac arrest incidents. This activityeffectively promoted the dissemination of rst-aid knowledge, and enhanced public safety awareness in society, contributing tothe "Kind Xiamen" public welfare construction.
Rural RevitalizationXiamen Xiangyu actively fulfills the responsibilities of a state-owned enterprise, and explores new mode for rural revitalization.Starting from establishing a long-term assistance mechanism, the Company fully leverages its own industrial advantages to increaseits assistance efforts, and helps promote the coordinated development of the regional economy and society, contributing to ruralrevitalization. Moreover, the Company strictly implements the decisions and deployments of the Party Central Committee to thoroughlycarry out the requirements of the "14th Five-Year Plan" for Promoting Agricultural and Rural Modernization, and the Companypromotes a stable "blood-making" assistance model to support the sustainable development of rural industries according to its mainresponsibilities and main business.
Organizational Revitalization
Attaching great importance to the rural revitalization, the Company has effectively raised its political stance, and it has innovated and
rened the mechanism for providing paired assistance according to the overall deployment of related work. Moreover, the Company
has held multiple special meetings with the paired assistance villages and the village work teams to organize on-site surveys for
deeply analyzing the current situation of rural development, and assisted in formulating feasible development planning to provide
long-term and stable support to the assisted villages. In addition, the Company has conducted multi-dimensional collaboration such
as joint Party building, resource sharing, and policy publicity to constantly consolidate the assistance system, providing powerful
support for rural economic development.
Enhance Leadership to Improve "Organizational Capacity"
Rural Joint Party Class
During the reporting period, the Company established a paired assistance relationship withGuoxi Village and Houpu Community. It conducted precise assistance in areas such as ruraleconomy, improvement of people’s livelihood, and talent cultivation, and a total of exchangeand visit activities were organized, covering symposiums, caring visits, and children’s care, whichdemonstrated its commitment to rural revitalization via practical actions.
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
104105
Adhering to the principle of "alleviating povertyby first addressing the spirit of the people", theCompany deeply understands the actual needs ofthe villagers to provide targeted support regardingissues such as employment, education, andmedical care that are of concern to the people.During important periods such as the New Year’sDay, Spring Festival, and "July 1st", the Companywill organize its Party cadres to visit 10 pairedhouseholds in the assisted villages, where theycommunicated face-to-face to publicize the Party’spolicies benefiting the farmers, and encouragedthe villagers to establish a spirit of self-reliance andhard work for prosperity. In addition, the Companyalso actively promotes training programs andemployment guidance, providing practical trainingcourses for villagers with entrepreneurial intentionsto help them expand their income channels.We have fully leveraged our advantages in the industrial chain to drive the modernization of agriculture, helping enhance the qualityand efficiency of the village’s collective economy. The Corporate Party Committee strictly implemented the requirements of the"three-party joint Party building agreement", creating a collaborative relationship featuring "mutual promotion of Party organizationconstruction, interactive learning of Party members and cadres, mutual use of Party building activity carriers, and mutual helpof paired assistance". Moreover, the corporate departments such as the Strategic Investment Center and the Supply ChainManagement Department formed the assistance working group, going to the Guoxi Village for special survey. They conducted on-site investigations to understand the development situation of the village committee, and held discussions and exchanges with thevillage’s resident cadres and the village "two committees" team to jointly formulate an industrial assistance plan. In addition, theCompany also introduced high-quality agricultural projects, and they conducted means such as technological empowerment, nancialsupport, and brand promotion to help local characteristic agriculture develop, achieving a transformation from "blood transfusionstyle" assistance to "blood drawing style" assistance.
Paired Assistance to Erect the "Heart-connection Bridge"
Promotion by Assistance to Build the "Road to Prosperity"
Paired Assistance
"July 1st" Visit to Guoxi Village
Agricultural Revitalization
The Company actively responds to the rural revitalization initiative and the national cereal strategy to base on the actual situation ofthe agricultural industry, and it has established seven modern warehousing and logistics centers, creating a comprehensive serviceplatform for full industrial chain of cereal covering pre-production, mid-production, post-production and processing. Moreover, it utilizesdigital mart technology to empower traditional agriculture to erect the platform for promoting rural revitalization, and comprehensivelyintegrates the Internet with traditional agricultural production, supply, and sales to improve agricultural resource allocation, productionefficiency, product quality, market expansion, and comprehensive benefits, which truly solves the practical problems in traditionalagriculture, contributing to implementation of the rural revitalization strategy.
Promote the standardization,scienticization and professionalizationof agriculture, and integrate agriculturalproduction service resources to establisha cereal planting industry alliance forenhancing the cooperation loyalty offarmers, stabilizing and expanding thecereal source.Under the digital empowerment, theCompany has created an agriculturalindustry-level supply chain serviceplatform, and has launched the "XingxingXiangnong" APP to provide farmers withfull-process services such as plantingorders, agricultural nance, agriculturalsupplies, cereal collection reservations,and logistics transportation, raisingthe organizational level of agriculturalproduction.
Large-scale planting to improve agriculturalproductivity
Efcient circulation to facilitate themarket expansion of agriculturalproductsEstablish a cereal circulationindustry alliance to promote thecost reduction and efciencyincrease of enterprises ofdeep processing of cereal andfeed processing, and optimizethe supply-demand matchingmechanism to and achieve asupply mode of "cereal available atany time, special product supply,high-quality and reasonableprice". The Company also providessupporting services of supplychain such as logistics and nanceto reduce costs in each link of theindustrial chain, improving theoverall collaborative efciency ofthe entire industrial chain.
Smart warehousing to optimizecereal circulationCreate a cereal warehousingalliance to digitally renovateits own warehousing facilities,achieving smart management,and build a warehouse-pointalliance platform via technologiessuch as the Internet of Things,cloud computing, and blockchainto integrate social warehouse-points into digital warehouses,achieving standardization ofcereal products, intelligenceof process, and optimizationof storage to improve overallwarehousing efciency.
Digital Platforms Facilitate Agricultural Development
???
?
In addition, the Company coordinates various resources at all stages of planting, purchasing, and selling to form an agricultural full-chainecosystem, which ensures national cereal production and farmers’ income from cereal plant, contributing to consolidate the "ballaststone" of national cereal security.Case
"Unity in Dream, Cooperation for Win-win" to Receive a Thank-you Letter from China AgriculturalReclamation Industry Development Fund
In February 2024, the China Agricultural Reclamation Industry DevelopmentFund sent a thank-you letter to the Company, expressing sincere gratitude forcorporate contributions in supporting the establishment of the national fund in localregions, facilitating rural revitalization, fullling policy missions, and implementingindustrial guidance. In the future, the Company will constantly focus on financingfor agriculture to promote digital smart empowerment, helping modern agriculturalindustries strengthen supply chains and expand capabilities, and will strive to buildan agricultural power and jointly create a new picture of rural revitalization.
Thank-you Letter
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
106107
Key Performance TableCorporate Governance IndicatorsIndicatorsUnit20232024Number of meetings held by Board of DirectorsTimes1515Number of meetings held by Board of SupervisorsTimes88Number of General Shareholders' Meetings heldTimes64Number of meetings held by Audit CommitteeTimes106Number of meetings held by Remuneration and Appraisal CommitteeTimes46Number of meetings held by Strategy and Sustainable Development CommitteeTimes11Number of Board of DirectorsPersons99Number of independent directorsPersons33Number of female directorsPersons11Average tenure of directorsYears3.564.51Average age of directorsYears56.3355.44Number of Board of SupervisorsPersons33Number of employee supervisorsPersons11Number of anti-corruption and anti-bribery trainingsTimes1525
Economic and Service IndicatorsIndicatorsUnit20232024
Operating revenueCNY 100 Million4,590.353,666.71Net prot for shareholders of listed companyCNY 100 Million15.7414.19Tax contributionCNY 100 Million32.2932.05Investment in R&DCNY 100 Million1.541.17Investment in digital construction
CNY 10 Thousand23,08317,588Number of digitalization construction empowerment training activities (sessions)Sessions4063
Employee and Social IndicatorsIndicatorsUnit20232024Total number of employeesPersons8,5657,929Number of employees with disabilitiesPersons77Number of demobilized military employeesPersons74106
By Gender
Number of male employeesPersons5,5025,071Number of female employeesPersons3,0632,858
By Age
Number of employees aged 30 and belowPersons3,0072,478Number of employees aged 31 to 50Persons4,8844,802Number of employees aged 51 and abovePersons674649
IndicatorsUnit20232024Number of employees attending digitalization construc-tion-related trainingsPerson-times8251,105Number of management personnel attending digitalization construction-relatedtrainings
Person-times240176Number of full-time personnel responsible for corporate informationconstruction at headquarters
Persons1821Number of major cybersecurity incidentsPieces00Number of conrmed cybersecurity accidentsPieces00Number of cybersecurity trainingsTimes44Number of cybersecurity emergency drillsTimes12Number of conrmed data leakage accidentsPieces00Note:
1.The digitalization investment was higher due to the peak period of new project construction in 2023, and there was a signicant change in digitalization input because of the
optimization & adjustment of supplier structure and the reduction of new projects in 2024.
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
108109
IndicatorsUnit20232024By RegionNumber of employees working in Chinese mainlandPersons8,4627,820Number of employees working in Hong Kong, Macao and TaiwanPersons108Number of employees working in other countries and regionsPersons93101
By Educational Background
Number of employees with doctoral degreePersons47Number of employees with master’s degreePersons796759Number of employees with bachelor’s degreePersons3,9413,932Number of employees with junior college or belowPersons3,8243,231
By Profession
Percentage of production personnel%2730Percentage of sales personnel%1816Percentage of technical personnel%35Percentage of nancial personnel%99Percentage of administrative personnel%1614Percentage of service personnel%2423Percentage of other personnel%23Duration of employee trainingsHours94,39856,735Average duration of training per employeeHours2216.24Investment in safety productionCNY 10 Thousand4891,313Number of employees undergoing occupational disease physical examinationPersons460532Coverage rate of physical examination of occupational disease risk position%100100Number of safety emergency training sessionsSessions132384Number of safety emergency drillsTimes89208Number of employee volunteer activitiesTimes4362Number of participating in rural revitalization projectsPieces41Number of participating in industry forums/technical ex-change meetingsTimes3540
Environmental IndicatorsIndicatorsUnit20232024Investment in energy conservation and emission reductionCNY 10 Thousand675515Raw coal consumption volumeTons23,768.9117,583.29Fuel oil consumption volumeTons190.29109.17Diesel consumption volumeL12,110,990.8010,065,848.41Gasoline consumption volumeL360,421.01400,952.77Natural gas consumption volume
m?431,3692,451,417.17Steam consumption volumeTons173,202.45162,058.54Consumption volume of externally purchased power
kWh36,232,975.2070,518,910.06Total water consumption volume
m?170,860211,793.03Water conservation (recycled/reused water) volumem?16,40627,876.00Total waste gas emission volume
m?156,734,9371,139,963,239.28Waste gas particulate matter content
mg/m?90.7894.25Waste gas nitrogen oxide content
mg/m?443.7351.26Waste gas sulfur oxide content
mg/m?3673.85Waste gas VOCs emission volume
mg/m?20.114.66Total wastewater discharge volumem?55,06396,040.00Chemical Oxygen Demand (COD) in wastewatermg/L8.749123Five-day biochemical oxygen demand of wastewater (BOD
)mg/L2.03938.425Suspended solids content of wastewatermg/L1.6621Ammonia nitrogen content of wastewatermg/L0.48417.85Total phosphorus content of wastewatermg/L0.87820.548
Note:
1.In 2024, Xiangdao Logistics was included in the statistical scope of natural gas consumption volume, resulting in a signicant change in the data.
2. The new businesses were put into operation in September 2023 and the businesses were expanded with the construction of new warehouses and the replacement of
electrical equipment in 2024, so the consumption volume of externally purchased electricity was changed signicantly.
3.The new businesses were put into operation in September 2023 and the businesses were expanded with the construction of new warehouses and the increase in water
usage scenarios for coal business in 2024, so the total water consumption volume was changed signicantly.
4.In 2024, Xiangming Oil was included in the statistical scope of waste gas emissions, resulting in a signicant change in the data.
5.In 2024, the calculation method was changed, namely, the weighted average was used to calculate the pollutants content in the waste gas, resulting in a signicant change
in the data.
Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
110111
System Certication OverviewCerticationStandards
Certication EntitiesCertication Scope
ISO 9001
Yancheng Xiangyu Environmental ResourcesMining Technology Co., Ltd.
Production and sales of iron concentrate productsFujian Xingda Import & Export Trading Co., Ltd.
Sales and import trade of ferrous metals, mineral products, and coal; export
trade of ferrous metals and non-ferrous metalsRizhao Xiangming Oils Co., Ltd.Processing of edible soybean oil and raw material soybean meal of feedChengda Products (Xiamen) Co., Ltd.
Domestic trade and import/export trade of ferrous and non-ferrous metal
raw materials and their products (except for hazardous chemicals and goods
restricted by state for corporate operation or prohibited by state for import/
export)Xiamen Xiangyu Resources Co., Ltd.
Sales, import and re-export trade services of coal, metal ores and their
productsFujian Xiangyu New Energy Co., Ltd.
Sales of photovoltaic equipment and components & parts; domestic cargo
transportation agency; international cargo transportation agencyNantong Xiangyu Shipbuilding & OffshoreEngineering Co., Ltd.
Steel shipbuilding
Xiamen Xiangyu New Energy Co., Ltd.
Sales of metal ores, chemical products (excluding licensed chemical
products), photovoltaic equipment and components & parts; domestic cargo
transportation agency; sales of lithium hydroxide and nickel sulfate within the
qualication scope (without storage place operation)
ISO 14001
Suihua Xiangyu Cereals and Oil Technologies Co.,Ltd.
Environmental management activities related to the processing of rice and its
related placesYancheng Xiangyu Environmental ResourcesMining Technology Co., Ltd.
Production and sales of iron concentrate products, and supporting activities
thereofChengda Products (Xiamen) Co., Ltd.
Domestic trade and import/export trade of ferrous and non-ferrous metal
raw materials and their products (except for hazardous chemicals and goods
restricted by state for corporate operation or prohibited by state for import/
export)Fujian Xiangyu New Energy Co., Ltd.
Sales of photovoltaic equipment and components & parts; domestic cargo
transportation agency; international cargo transportation agencyXiamen Xiangyu Singamas Container Co., Ltd.General freight storage services, container yard services
CerticationStandards
Certication EntitiesCertication Scope
ISO 14001
Nantong Xiangyu Shipbuilding & OffshoreEngineering Co., Ltd.
Steel shipbuilding
Xiamen Xiangyu New Energy Co., Ltd.
Sales of metal ores, chemical products (excluding licensed chemicalproducts), photovoltaic equipment and components & parts; domestic cargotransportation agency; sales of lithium hydroxide and nickel sulfate within thequalication scope (without storage place operation)ISO 22000
Suihua Xiangyu Cereals and Oil Technologies Co.,Ltd.
Safety management activities for food production in the rice productionworkshop of Suihua Xiangyu Cereals and Oil Technologies Co., Ltd. (located inZhangwei Town, Beilin District, Suihua City)ISO 27001
Nantong Xiangyu Shipbuilding & OffshoreEngineering Co., Ltd.
Information security management activities related to shipbuilding;Information Security Statement of Applicability (SOA) Version 1.1
ISO 45001
Yancheng Xiangyu Environmental ResourcesMining Technology Co., Ltd.
Production and sales of iron concentrate products, and supporting activitiesthereofChengda Products (Xiamen) Co., Ltd.
Domestic trade and import/export trade of ferrous and non-ferrous metalraw materials and their products (except for hazardous chemicals and goodsrestricted by state for corporate operation or prohibited by state for import/export)Fujian Xiangyu New Energy Co., Ltd.
Sales of photovoltaic equipment and components & parts; domestic cargotransportation agency; international cargo transportation agencyNantong Xiangyu Shipbuilding & OffshoreEngineering Co., Ltd.
Steel shipbuilding
Xiamen Xiangyu New Energy Co., Ltd.
Sales of metal ores, chemical products (excluding licensed chemicalproducts), photovoltaic equipment and components & parts; domestic cargotransportation agency; sales of lithium hydroxide and nickel sulfate within thequalication scope (without storage place operation)
ISO 50001
Yancheng Xiangyu Environmental ResourcesMining Technology Co., Ltd.
Management of energy procurement, receiving & storage, transportation/distribution, and use involved in the production, operation and service of ironconcentrate products, as well as the application of energysaving technologiesNantong Xiangyu Shipbuilding & OffshoreEngineering Co., Ltd.
Energy management activities involved in the steel shipbuilding processHACCPRizhao Xiangming Oils Co., Ltd.Processing of edible soybean oil and raw material soybean meal of feed
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
112113
Index of IndicatorsBenchmark Index to the Guidelines of the Stock ExchangeGRI Content IndexTopics disclosedSections of the ReportClimate Change TacklingEnergy Conservation and Carbon Reduction to Respond to Climate ChangePollutant dischargePollution Prevention and Control to Promote Ecological ProtectionWaste disposalPollution Prevention and Control to Promote Ecological ProtectionEcosystem and bio-diversity protectionPollution Prevention and Control to Promote Ecological ProtectionEnvironmental com-pliance managementEnvironmental Compliance to Consolidate Responsibility ManagementEnergy usageEnergy Conservation and Carbon Reduction to Respond to Climate ChangeUsage of water re-sourcesResource Conservation to Develop Recycling EconomyCircular economyResource Conservation to Develop Recycling EconomyRural revitalizationTake Responsibility, Share Development AchievementsContributions to the societyTake Responsibility, Share Development AchievementsInnovation-drivenInnovation-driven, Escort Industrial UpgradingTechnology ethics
Not involved. The Company's core business does not involve scientic research, technologydevelopment and other activities in sensitive elds such as life sciences and articial intelligenceethics.Supply chain securityGather Sincerity, Build Cooperative EcosystemEqual treatment to small and medi-um-sizedenterprises
Not involved. The Company treats small and medium-sized enterprises equally, and there is nooverdue payment to small or medium-sized en-terprises.Safety and quality of products and servicesGather Sincerity, Build Cooperative EcosystemData security and customer privacy protectionInnovation-driven, Escort Industrial UpgradingEmployeesPeople-oriented, Compose a Bright FutureDue diligenceRisk Control Orientation to Securely Adhere to the Com-pliance Bottom LineCommunications with stakeholdersESG ManagementAnti-commercial bribery and an-ti-corruptionHonest Business Operation to Adhere to Commercial EthicsAnti-unfair competi-tionHonest Business Operation to Adhere to Commercial Ethics
GRI STANDARD
DISCLOSURE LOCATION
GRI 2: General Disclosures 2021
2-1Organizational detailsAbout Xiamen Xiangyu2-2Entities included in the organization’s sustainability reportingReport Preparation Description2-3Reporting period, frequency and contact pointReport Preparation Description2-4Restatements of informationReport Preparation Description2-5External assurance
Independent Assurance andStatement of Opinion2-6Activities, value chain and other business relationshipsESG Management2-7Employees
People-oriented, Compose a BrightFuture2-8Governance structure and composition
Standardized Operations to AchieveEfcient and Steady Governance2-10Nomination and selection of the highest governance body
Standardized Operations to AchieveEfcient and Steady Governance2-11Chair of the highest governance body
Standardized Operations to AchieveEfcient and Steady Governance2-12Role of the highest governance body in overseeing the management of impactsESG Management2-13Delegation of responsibility for managing impactsESG Management2-14Role of the highest governance body in sustainability reportingESG Management2-15Conicts of interest
Standardized Operations to AchieveEfcient and Steady Governance2-16Communication of critical concernsESG Management2-17Collective knowledge of the highest governance body
Standardized Operations to AchieveEfcient and Steady Governance2-18Evaluation of the performance of the highest governance body
Standardized Operations to AchieveEfcient and Steady Governance2-19Remuneration policies
People-oriented, Compose a BrightFuture2-20Process to determine remuneration
Standardized Operations to AchieveEfcient and Steady Governance2-25Processes to remediate negative impacts
Gather Sincerity, Build CooperativeEcosystem2-26Mechanisms for seeking advice and raising concerns
Honest Business Operation to Adhereto Commercial Ethics; People-oriented,Compose a Bright Future2-27Compliance with laws and regulations
Risk Control Orientation to SecurelyAdhere to the Compliance Bottom Line2-29Approach to stakeholder engagementESG Management
Statement of use
Xiamen Xiangyu has reported the information cited in this GRI content index for the period from January 1, 2024 to December31, 2024 with reference to the GRI Standards.
GRI 1 usedGRI 1: Foundation 2021
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build EcologicalCivilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
114115
GRI STANDARD
DISCLOSURE LOCATIONGRI 3: Material Topics 20213-1Process to determine material topicsESG Management3-2List of material topicsESG Management3-3Management of material topicsESG ManagementGRI 201: Economic Performance 2016201-1Direct economic value generated and distributedRefer to the annual report201-3Dened benet plan obligations and other retirement plans
People-oriented, Compose a BrightFutureGRI 203: Indirect Economic Impacts 2016203-1Infrastructure investments and services supported
Take Responsibility, Share DevelopmentAchievements203-2Signicant indirect economic impacts
Take Responsibility, Share DevelopmentAchievementsGRI 205: Anti-corruption 2016205-1Operations assessed for risks related to corruption
Honest Business Operation to Adhere toCommercial Ethics205-2Communication and training about anti-corruption policies and procedures
Honest Business Operation to Adhere toCommercial Ethics205-3Conrmed incidents of corruption and actions taken
Honest Business Operation to Adhere toCommercial EthicsGRI 206: Anti-competitive Behavior 2016206-1Legal actions for anti-competitive behavior, anti-trust, and monopoly practicesNo Related Lawsuit in the CompanyGRI 207: Tax 2019207-1Approach to tax
Risk Control Orientation to SecurelyAdhere to the Compliance Bottom Line207-2Tax governance, control, and risk management
Risk Control Orientation to SecurelyAdhere to the Compliance Bottom Line207-3Stakeholder engagement and management of concerns related to taxRefer to the annual report207-4Country-by-country reportingRefer to the annual reportGRI 301: Materials 2016301-1Materials used by weight or volume
Resource Conservation to DevelopRecycling Economy301-3Reclaimed products and their packaging materials
Resource Conservation to DevelopRecycling EconomyGRI 302: Energy 2016302-1Energy consumption within the organization
Energy Conservation and CarbonReduction to Respond to ClimateChange302-4Reduction of energy consumption
Energy Conservation and CarbonReduction to Respond to ClimateChange302-5Reductions in energy requirements of products and services
Energy Conservation and CarbonReduction to Respond to ClimateChange
GRI STANDARD
DISCLOSURE LOCATION
GRI 303: Water and Efuents 2018303-1Interactions with water as a shared resource
Resource Conservation to DevelopRecycling Economy303-2Management of water discharge-related impacts
Pollution Prevention and Controlto Promote Ecological Protection303-4Water discharge
Pollution Prevention and Controlto Promote Ecological Protection303-5Water consumption
Resource Conservation to DevelopRecycling EconomyGRI 304: Biodiversity 2016304-1
Operational sites owned, leased, managed in or near protected areas and areasof high biodiversity value outside protected areas
Pollution Prevention and Controlto Promote Ecological ProtectionGRI 305: Emissions 2016305-5Reduction of GHG emissions
Energy Conservation and CarbonReduction to Respond to ClimateChange305-7Nitrogen oxides (NOx), sulfur oxides (SOx), and other signi?cant air emissions
Pollution Prevention and Controlto Promote Ecological ProtectionGRI 306: Waste 2020306-1Waste generation and signi?cant waste-related impacts
Pollution Prevention and Controlto Promote Ecological Protection306-2Management of signi?cant waste-related impacts
Pollution Prevention and Controlto Promote Ecological Protection306-3Waste generated
Pollution Prevention and Controlto Promote Ecological ProtectionGRI 308: Supplier Environmental Assessment 2016308-1New suppliers that were screened using environmental criteria
Gather Sincerity, BuildCooperative Ecosystem308-2Negative environmental impacts in the supply chain and actions taken
Gather Sincerity, BuildCooperative EcosystemGRI 401: Employment 2016401-1New employee hires and employee turnover
People-oriented, Compose aBright Future401-2
Bene?ts provided to full-time employees that are not provided to temporary orpart-time employees
People-oriented, Compose aBright Future401-3Parental leave
People-oriented, Compose aBright FutureGRI 403: Occupational Health and Safety 2018403-1Occupational health and safety management system
People-oriented, Compose aBright Future403-2Hazard identi?cation, risk assessment, and incident investigation
People-oriented, Compose aBright Future403-3Occupational health services
People-oriented, Compose aBright Future403-4
Worker participation, consultation, and communication on occupational healthand safety
People-oriented, Compose aBright Future403-5Worker training on occupational health and safety
People-oriented, Compose aBright Future403-6Promotion of worker health
People-oriented, Compose aBright Future
Governance to JointlyBuild the Foundation
for Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a Beautiful
Blueprint
Conclusion
116117
GRI STANDARD
DISCLOSURE LOCATION403-7
Prevention and mitigation of occupational health and safety impacts directly
linked by business relationships
People-oriented, Compose aBright Future403-8Workers covered by an occupational health and safety management system
People-oriented, Compose aBright Future403-9Work-related injuries
People-oriented, Compose aBright Future403-10Work-related ill health
People-oriented, Compose aBright FutureGRI 404: Training and Education 2016404-1Average hours of training per year per employee
People-oriented, Compose aBright Future404-2Programs for upgrading employee skills and transition assistance programs
People-oriented, Compose aBright FutureGRI 405: Diversity and Equal Opportunity 2016405-1Diversity of governance bodies and employees
Standardized Operations toAchieve E?cient and SteadyGovernance; People-oriented,Compose a Bright FutureGRI 406: Non-discrimination 2016406-1Incidents of discrimination and corrective actions taken
People-oriented, Compose aBright FutureGRI 413: Local Communities 2016413-1
Operations with local community engagement, impact assessments, and
development programs
Take Responsibility, ShareDevelopment AchievementsGRI 414: Supplier Social Assessment 2016414-1New suppliers that were screened using social criteria
Gather Sincerity, BuildCooperative Ecosystem414-2Negative social impacts in the supply chain and actions taken
Gather Sincerity, BuildCooperative EcosystemGRI 416: Customer Health and Safety 2016416-1Assessment of the health and safety impacts of product and service categories
Gather Sincerity, BuildCooperative Ecosystem
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Governance to JointlyBuild the Foundationfor Development
Green Empowerment toJointly Build Ecological
Civilization
Collaborative Growthand Coexistence toJointly Draw a BeautifulBlueprint
Conclusion
118119
Independent Assurance and Statement of Opinion
Independence and Capability
Assurance Statement
Assurance Standard
Assurance Scope
Assurance Process and Work
InFaith Group (hereinafter referred to as “InFaith”), as entrusted by Xiamen Xiangyu Co., Ltd. (hereinafter referred to as “XiamenXiangyu”), has conducted independent limited assurance of the environmental, social and governance information and data disclosed inXiamen Xiangyu 2024 Environmental, Social and Governance Report (hereinafter referred to as “Report”), and disclosed the assuranceresult and conclusion to readers of the Report in the form of independent assurance and statement of opinion.
1. All the assurance team members of InFaith have no business relationship with Xiamen Xiangyu that leads to conicts of interest; The
team of InFaith has performed this assurance work independently.
2. The assurance team of InFaith consists of experienced professionals in the industry. Relevant persons have received professional
training on the GRI Standards issued by the GRI, AA1000AS v3, ISO 14001, ISO 26000, SA 8000, EcoVadis global supply chainrating and other sustainability-related standards and have adequate understanding and practical experience in relevant internationalprinciples, evaluation systems and assurance standards.
1. Xiamen Xiangyu management shall be fully held accountable for the preparation and content of the Report. It is the responsibility of
InFaith to conduct an assurance based on the scope as described herein, and to provide professional assurance opinions to the Reportreaders and stakeholders.
2. Based on the assurance scope limits, InFaith shall, in accordance with AA1000AS v3, conduct independent limited assurance and
guarantee conclusion for the matters within the scope dened in the Report. In addition to providing independent assurance and makingother statements of opinion on the facts of assurance under the conclusion, InFaith will not assume any legal or other liabilities for anyinquiries for any other purposes, or for any other persons who read this Independent Assurance and Statement of Opinion.
3. Any questions regarding the contents or related matters stated therein will be answered by Xiamen Xiangyu..
4. In the event of any conict or inconsistency between the Chinese version and the English version of this Independent Assurance and
Statement of Opinion, the Chinese version shall prevail.InFaith adopts AA1000 v3 type-1 medium assurance level, which includes Xiamen Xiangyu’s evaluation of the compliance situation anddegree of the four AA1000 v3 assurance principles, including inclusiveness, substantiality, responsiveness and impact.
1. The assurance scope is limited to the information and data of Xiamen Xiangyu and its afliated companies covered by the Report,
excluding the data and information of Xiamen Xiangyu suppliers, contractors and other third parties.
2. InFaith adopts AA1000AS v3 type-1 moderate assurance level to evaluate Xiamen Xiangyu’s compliance nature and degree of the
four assurance principles in AA1000AS v3.In order to collect evidence related to the conclusion, Infaith Group has carried out the following work:
1. Interview with the senior management team and employees of Xiamen Xiangyu Co., Ltd. to understand the overall situation and
related processes of Xiamen Xiangyu Co., Ltd. in fullling its corporate environmental, social and governance responsibilities.
2. Verify the key development and policy implementation of relevant organizations of Xiamen Xiangyu Co., Ltd., and the supporting
evidence of the announcement made in the verication report.
3. Through interviews and inspection of relevant documents, understand the expectations and needs of major stakeholders and
stakeholders of Xiamen Xiangyu Co., Ltd., the specic communication channels between the two parties, and how Xiamen Xiangyu Co.,Ltd. responds to the expectations and needs of stakeholders.
4. Select the information related to environment, society and governance in this report, carry out analytical verication procedures and
overall performance of this information, and evaluate and verify whether it is consistent with the contents of the report.
5. Verify the process management of the principles of inclusiveness, materiality, responsiveness and impact in the report and its related
AA1000AS v3 to conrm the appropriateness of this statement.
6. Perform other procedures deemed necessary by Infaith Group.
Assurance Conclusions
Limitation
1. According to the information provided by Xiamen Xiangyu and the sample test, there is no misrepresentation in the Report.
2. For the principles of inclusiveness, substantiality, responsiveness and impact included in AA1000AS v3, the detailed assurance
conclusions are as follows:
The assurance process was carried out at the location within the scope of the Report.Because there is no internationally recognized and commonly used standard for the evaluation and measurement of non-financialinformation, the application of different but acceptable information and measurement technologies may affect the comparability withother institutions.If you have any advice for this Independent Assurance and Statement of Opinion, you may contact:
Tel: 021-20740303Email: esg@infaith.com.cnAddress: 17F, Tower T1, Lujiazui Riverside Center, Lane 257, Binjiang Avenue, Pudong New District, Shanghai
InFaith GroupShanghai, June 2025
3. Based on the procedures implemented and the evidence obtained by InFaith, we have found nothing that causes us to doubt the
reliability and quality of the specic performance indicators selected in the Report.
Inclusiveness
According to the Report, Xiamen Xiangyu has taken important measures including continuously seeking theparticipation of stakeholders in the business operation, understanding their expectations and concerns,communicating about and conrming substantive issues in a timely manner, etc., to respond responsibly andstrategically to stakeholders related to the social responsibilities of the Company.Substantiality
Xiamen Xiangyu has announced major topics that will have substantial inuence and impact on the evaluation,decision-making, actions and performance of the organization and its stakeholders, and judged and improvedthe management and performance of the issues.Responsiveness
Xiamen Xiangyu has implemented relevant policies, and is able to respond to issues that concern thestakeholders in a timely manner.Impact
XiameXiamen Xiangyu has the adequate ability to identify substantive issues. It has implemented balancedand effective evaluation and disclosure methods, and has established a systematic process for monitoring,measurement, evaluation and management impact, so as to achieve more efcient management of decision-making and results within the organization, and demonstrate the impact of the substantive issues in animpartial and objective manner.