ÏÃÃÅÏóÓ죺Xiangyu2022Environmental£¬Social and Governance Report

Dear readers:

We appreciate your time and attention in reviewing our inaugural ESG repo®î presented by Xiamen Xiangyu.We truly appreciate your attention and would be grateful if you could share your insights with us, enablingus to enhance the repo®î even fu®îher.If you have any comments or suggestions regarding our Company¡¯s sustainable development, please feelfree to scan the QR code provided below or email us at [e-mail].

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CONTENTS

ROADMAP AHEAD

MESSAGE FROM THE CHAIRMAN

SUSTAINABILITY MANAGEMENT

Stakeholder CommunicationsESG Governance StructureMateriality Assessment

GOVERNANCE CHAPTER:

Keep Pace withthe Times and Strengthening the Foundation of the Enterprise

Governance Chapter:

Keep up with the times and lays a solid foundation

Corporate GovernanceRisk Control ManagementCompliance ManagementMerchant ManagementData Security Management

Business ModelThe Transformation of the Company'sDigital Intelligence

Protection of Employment RightsEmpower EmployeesCorporate Social Responsibility (CSR)

Green LogisticsEnvironmental-friendly WorkplaceSe®ïicing Green Indust®ñ CustomersApplication of Green Technology

ABOUT XIAMEN XIANGYU

Company Pro®êleCompany CultureCompany Honors2022 Annual Pe®íormance

APPENDIX

About the Repo®îList of PoliciesKey Pe®íormance IndicatorsIndex of Standards

SERVICE CHAPTER:

Pursuing Pro®êt for the World's Well-being,Se®ïicing for High-quality Development of the Nation

SOCIAL CHAPTER£º

Cooperate and Bene®êt Mutually towards a Win-win Situation

ENVIRONMENTAL CHAPTER:

Discovering the Splendor ofNatural Environment and Leading the Way for Green Innovation

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter: Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

Deng Qidong, Chairman of the Board

The industrial and supply chains is the "backbone and lifeline" of the national economy, providing critical reinforcementfor the pursuit of high-quality development, and more importantly, acting as the vital force propelling the epochalwaves of advancement. Standing by the company mission of " Bene­Åt the World, Achieve Success Together ", we haveconsistently adhered to the development philosophy of "Risk First, Pro­Åt Second, Service Scale Third" since our IPO in2011. In the ever-changing marketplace, we ­Årmly grasp the sustainable development direction, contributing to theconstruction of a safe, stable, smooth, e­Ècient, open, inclusive, mutually bene­Åcial and win-win global industrialand supply chain ecosystem.In the past three years, the international situation has been turbulent, the economic landscape has changed, greyrhinos and black swans have occurred frequently, and companies must look for certainty amidst uncertainty. Weknow that we must make the "ESG gene" rooted in Xiangyu's culture clearer and make the invisible gene explicit inorder to stimulate long-term value. We are upgrading the ESG concept into ESG strategy, comprehensively examiningthe impact of business decisions and daily operations on society and the environment, consciously enhancingstakeholder participation and guarantee their right to know, and actively creating comprehensive social andenvironmental values and sharing values with the society.

Where all things ­Èow freely, prosperity ensues. We invigorate growth with logistics and add vibrancy to lucid watersand lush mountains through circulation. Harnessing our pioneering "Road Transport, Rail Transport, Water Transport,and Warehousing" networked logistics system, we achieve seamless coordination among multi-model transportmodes, such as "Switching from Road to Rail Transport", "Consolidating Loose Cargo into Containers", "Port-to-PortCooperation". We actively assimilate societal transport capabilities and strategic resources from port and aviationjunctions, thereby bolstering critical aspects of the industrial chain. Our bespoke supply chain services o­Çer ourclients "one-stop service, green supply chain, end-to-end supply chain" solutions, aiding manufacturing enterprises

in enhancing their ful­Ållment capabilities, building momentum for transformation and upgrading, and leading thecharge in developing a green, e­Ècient, and innovative bulk supply chain paradigm.By encouraging innovation with a practical mindset and unleashing the future with intelligence. We embracecutting-edge technology to unleash our core strength with the power of digital intelligence, further enhancingthe e­Èciency of our re­Åned management and forging a "smart engine" for collaborative development within theindustry. Our comprehensive suite of industry-standard digital programes, including "YuLianTong" digital supplychain service platform, and industrial-level internet platform for agriculture, and smart logistics platforms, havesuccessfully transitioned from "zero" to "one". We provide viable, accessible, and usable instances for the applicationof digital intelligence in the bulk supply chain ­Åeld.With a commitment to neighborly kindness and a mission of global harmony, we embarked on a journey ofcross-border trade in bulk commodities, fueled by an innate understanding of the international marketplace.Currently, following our vision of connecting the world, we capitalize on our forward-thinking international brandstrategy, constructing a truly global bulk supply chain service system and extending our business relations to over120 countries and regions.We actively work together with the international "circle of friends" to create more practicalcollaboration results, so that the new opportunities for development of the industrial chain to bene­Åt the world, andto add momentum to achieve a greener, more inclusive and sustainable growth of the global economy.

MESSAGE FROM THE CHAIRMAN

As we release our inaugural ESG report, our aim is to enhance the As we release our inaugural ESG report, our aim is to enhance thecomprehension of ESG principles across the entire organization, comprehension of ESG principles across the entire organization,improve our ESG governance framework, and promote a improve our ESG governance framework, and promote acoexistent and mutually beneficial value ecosystem through the coexistent and mutually beneficial value ecosystem through thedevelopment of sustainable supply chains.development of sustainable supply chains.

Xiamen Xiangyu Co.,Ltd.Xiamen Xiangyu 2022 Environmental, Social and Governance Repo®î

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter: Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter: Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

ABOUT XIAMEN XIANGYU

Company MissionBene®êt the World, Achieve Success

TogetherCompany Visionto Become a World-class Supply

Chain Se®ïice Enterprise

Xiamen Xiangyu SpiritGrassroots Spirit, Devotion toUnde®îakings

Five-star BehaviorsAssume Responsibility and TakeAction; Be Pragmatic and E®æcient;Be Customer-Oriented; Be Openand Inclusive; Be Pleasant andStraightforward

Five ConceptsRisk First; Building a Firm Foundation in theMarket; Cooperation for Win-Win Results;Innovative Development; Two-wheel Drive

Core Principle of Organizational

Construction Uphold Pa®îy Leadership

Core ValuesTake Value Creation as the Foundation

Company Pro®êle

CorporateCulture

Company name: Xiamen Xiangyu Co., Ltd.Abbreviation: Xiamen Xiangyu

Stock code: 600057.SHStock Abbreviation: XIANGYUHead o®æce: Xiamen, Fujian Province, China

Ranked 1323

th among the Top 2000 global listed companies by ForbesForbes MagazineRanked 28

th

in the Fo®îune China 500 and 1st in the Transpo®îation, logistics andwarehousing indust®ñ

Fo®îune ChinaNo.2 among the Top 50 Logistics Enterprises in ChinaChina Federation of Logistics & PurchasingOutstanding Logistics Enterprises in ChinaChina Logistics and Purchasing MagazineInnovative Logistics Demonstration Enterprise in ChinaChina Logistics and Purchasing MagazineAAAAA Logistics EnterpriseChina Federation of Logistics & Purchasing5A-level Supply Chain Se®ïice EnterprisesChina Federation of Logistics & PurchasingESG Competitiveness - Responsible SourcingGolden Bee IntelligenceSubject's AAA Credit Rating MaintainedUnited Credit Rating Co., LtdFujian Province Integrity-oriented Contract-abiding EnterpriseFujian Province Market Supe®ïision AdministrationNational Supply Chain Innovation and Application Demonstration EnterpriseMinist®ñ of Commerce People'sGreen Channel Enterprise of Customs Price EvaluationXiamen CustomsNational Demonstration Enterprise for Transformation and Upgrading of WarehousingIndust®ñ

China Association of Warehousing and DistributionA-class Enterprise of Xiamen CustomsXiamen CustomsTop 30 Employers in China with the Most Development Potential of the YearZhaopinFive-star Ce®îi®êed Trade UnionXiamen Federation of Trade Unions

HonoursAwarded by

Company Honors

Xiamen Xiangyu is primarily engaged in the provision of bulk supply chain se®ïices. By integrating logistics, trade, capital ®ìow, and information®ìow through a uni®êed circulation se®ïice platform, we o®ãers customers a full value chain circulation se®ïice, ranging from the procurement andsupply of raw materials and semi-®ênished products to the distribution and delive®ñ of ®ênished products. This has resulted in a comprehensivesupply chain se®ïice system for agricultural products, energy and chemical products, metal and mineral resources, and new energy commodities.Xiamen Xiangyu collaborates with pa®îners from more than 120 countries, and its investments span across 27 provinces, municipalities, andspecial administrative regions in China. The Company also establishes subsidiaries in the United States, New Zealand, Singapore, Indonesia,Vietnam and other countries, to contribute to the construction of a mutually bene®êcial, diversi®êed, balanced, safe, and e®æcient open economicsystem.

Global Presence of Xiamen Xiangyu

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter: Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

Governancepe®íormance

Customer

Se®ïicePe®íormance

SocialPe®íormance

Environmental

Pe®íormance

Total Assets

Operating Volume of MetalMinerals

The Number of Employeepa®îicipation in training

The Reduction of Carbon Emissionsthrough Intermodal Transpo®îation,such as Shifting Freight from Roadto Rail

Net Pro®êt Attributable to ParentCompany Owners

Operating Volume of Energy andChemical Indust®ñ

The Amount of Investment in LifeInsurance for Employees

EPS - Basic

Obtained Special Credit for Customers through "YuLianTong" Digital SupplyChain Se®ïice Platform

The Amount of Investment in Rural Revitalization

Total Operating Revenue

Operating Volume of AgriculturalProducts

The Amount of Subsidies Providedfor Employees in Need

ROE (Weighted)

Operating Volume of NewEnergy Materials

The Amount of Incidents or Accidentsin Workplace Safety Production

The Accumulated Number of FleetVehicles Conve®îed from Diesel toNatural Gas

2.637

billion yuan

63.45

million tons

7.5427

million yuan

The Reduction of Carbon Emissionsthrough Intermodal Transpo®îation,such as Shifting Freight from Roadto Rail27,000

tons

1.10

yuan/per share

Nearly

billion yuan

1,059,400

yuan

18.06

%

210,000

tons

7.3572

million yuan

vehicles

115.056

billion yuan

116.65

million tons

147,626

person-times

1.47

million tons

538.148

billion yuan

17.64

million tons

244,000

yuan

The Reduction of Carbon Emissionsthrough Intermodal Transpo®îation,such as Consolidating Loose Cargointo Containers

6,028.8

tons

2022 Annual Pe®íormance

Employees? Protection of Rights? Occupational Health and Safety? Training and Promotion? Compensation and Bene®êts

? Ful®êlling Contracts

with Integrity? Open, Fair,

and Impa®îial

Procurement

Mechanism

? Compliance Operations? Tax Compliance? Obse®ïing Business Ethics? Stimulating for LocalEconomic Development? Stimulating Employment

? Ful®êlling Contracts withIntegrity? Commercial Ethics andTransparency

? Fostering CommunityGrowth? Safeguarding theEnvironment? Contributing to Society

? Disclosing ofBusiness Progress ofthe Company? AssumingEnvironmental andSocial Responsibility? Signing Employment Contract? Ensuring Workplace Safety? Improving the Training Systemand Career AdvancementSystem? Improving the Sala®ñ andBene®êts Incentive System? Implementing Equity Incentive

Plan

? Ful®êlling Contracts

in Accordance with

the Law? Standardize

Procurement Systems

? Obse®ïing Law andDiscipline? Integrity in Tax Payment? Prudent Management? Local Employment

? Integrity in ProjectCooperation? Emphasizing Business

Ethics Construction

? Fostering CommunityInteraction? Implementing Eco-friendly Operations? Suppo®îing SocialWelfare Initiatives? Contributing through

Charitable Giving

? Press Releases? AccommodatingMedia Inte®ïiews? Safeguarding the

Environment? Upholding Social

Responsibilities

Stakeholders

Expectations and

Demands

Responses

Investors? Business Growth? Financial Returns? E®ãective Governance? Sustainable Development

? Growing Business in a Sustainable Way? Increasing the Amount of DividendPayouts? Improving Corporate Governance? Ensuring Timely Information Disclosure? Organizing Company Open HouseEvents? Developing Sustainable BusinessStrategies

Customers? Stable Supply of Goods? Expanding Sales Channels

? Optimizing Customer Se®ïice? Signing Long-term Agreements

ESG GovernanceStructure

Stakeholder Communications

SuppliersPa®înersGovernment and Regulato®ñ BodiesCommunityPublic and Media

as supe®ïiso®ñ andguiding bodies

Strategic Management Committee

ESG Execution Committee

ESG Management O®æce

Xiamen Xiangyu Co.,Ltd.Environmental, Social and Governance (ESG) Repo®î 2022

Xiamen Xiangyu has established a comprehensiveESG management framework, with the StrategicManagement Committee and its ESG ExecutionCommittee as overseeing and guiding authorities,and the ESG Management O®æce se®ïing as thecoordinating entity for routine ESG-related work.Each subsidia®ñ acts as the executing entity,with designated ESG coordinators within eachsubsidia®ñ and functional depa®îment se®ïing asthe foundational units for ESG management. Thisensures that ESG considerations are e®ãectivelyintegrated into the Company's regular operationalactivities.Xiamen Xiangyu actively engages in communication with stakeholders to identify and assess key materialities that mayimpact the Company's reputation, business pe®íormance, and sustainable development. This approach aims to enhance thetransparency and trustwo®îhiness of our repo®îing.

SUSTAINABILITY MANAGEMENT

as the drivingforce and dailymanagement entityas the executing entityMentalDivision

Energy ChemicalDivision

Agroforest®ñ

Division

LogisticsDivision

FunctionalDivision

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter: Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

With the strategic vision of "becoming a world-class supply chain se®ïice enterprise", Xiamen Xiangyu actively responds tothe Sustainable Development Goals (SDGs). We are committed to leveraging innovative technologies such as digitization andthe Internet of Things (IoTs) to improve our environmental, resource utilization, and social pe®íormance. We regularly discloseinformation on our directions and progresses with stakeholders.

Impo®îance to society and the environment

Impo®îance to business growth

Responsibleprocurement

Digital transformationGreen logisticsAnti-corruption

Risk managementCompliantoperationsTalent cultivation anddevelopmentEmployment rights protectionPollutionPrevention

IR management

Community and Government RelationsCommunity Contributionand Charitable Donations

IntellectualPrope®îy Protection

Data securityTax integrity

Corporate GovernanceCompliant operations, IR management

and risk management

Talent cultivation and development, Responsible

procurement, and Digital transformationGreen logistics

Xiamen Xiangyu Co.,Ltd.Environmental, Social and Governance (ESG) Repo®î 2022

SUSTAINABILITY MANAGEMENT

Indust®ñ Association Representative

"Xiamen Xiangyu's shift from relying on price di®ãerentials in commodity trading to providing reliable and e®æcientsupply chain se®ïices has set a remarkable example for the development of China's supply chain indust®ñ."Shareholder Representative"We highly recognize the prospects of China's bulk supply chain indust®ñ, as well as Xiamen Xiangyu's businessphilosophy, operational layout, and development strategies. We have con®êdence in Xiamen Xiangyu's forward-looking positioning in various ®êelds, and we look forward to growing together with such an outstanding company."Customer Representative"We are deeply impressed by Xiamen Xiangyu's commitment to mutual assistance and their pragmatic andprofessional se®ïices. By incorporating ESG principles into our collaboration, we can jointly establish a harmoniousand positive ESG ecosystem.""We have been pa®înering with Xiamen Xiangyu for over a decade. As a leading player in the bulk supply chainindust®ñ, Xiamen Xiangyu has demonstrated strong capabilities in both channels and logistics, providing us withcustomized solutions that address our speci®êc supply chain se®ïice needs. We are also willing to work closely withXiamen Xiangyu in ESG communication, building a mutually bene®êcial and trusting relationship where we cancollaborate and share together."Employee Representative

"Xiamen Xiangyu's rapid development has provided us, the younger generation, with numerous oppo®îunities. TheCompany's systematic and standardized training and development mechanisms give us a strong sense of belongingand achievement.""Since the Company went public in 2011, I have witnessed eve®ñ critical moment of its growth, and I feel immenselyproud and honored. Xiamen Xiangyu's sunny and uncomplicated work atmosphere allows me to wholehea®îedlydedicate myself to my work, pursuing our shared goals and ideals.""With the suppo®î of Xiamen Xiangyu, I have grown from a fresh-faced to a middle-level executive. Being able togrow alongside a forward-thinking company makes me feel that my youth and time are well spent."

Materiality Assessment

Xiamen Xiangyu consistently monitors and assesses material issues in the realm of sustainability, tailoring them to the Company's real-worldbusiness conditions. The Company periodically assesses the signi®êcance of these issues and prioritizes them accordingly, integrating the ®êndingsinto its strategic planning and decision-making processes. This approach ensures the implementation of sustainability principles throughout theCompany's operations.We refer to international standards such as the Global Repo®îing Initiative (GRI) Standards, the Sustainability Accounting Standards Board (SASB),as well as the criteria from international rating agencies such as MSCI and S&P. In accordance with our Company's actual business operations, wehave identi®êed 15 material issues that have a signi®êcant impact on our business. Taking into account the expectations of internal and externalstakeholders, we assess and prioritize these issues based on two dimensions: "impo®îance to business growth" and "impo®îance to society andthe environment." By doing so, we can allocate resources e®ãectively to address the most pressing sustainability challenges we currently face.Over the course of the repo®îing period, the Company identi®êed a total of 7 high-priority material issues. All depa®îments have conductedsystematic and extensive management and practices around these topics. Detailed descriptions of the related information can be found in thesubsequent main chapters of the repo®î.

Xiamen Xiangyu is committed to establishing and improving the smooth communication channels with its stakeholders,and continuously improving the e®ãectiveness and timeliness of the dialogue with a continuously improved communicationmechanism. During the repo®îing period, we maintained regular communication with our stakeholders and conductedin-depth communication with stakeholder groups such as indust®ñ associations, shareholders, merchants and employeesrespectively, in order to better understand and respond to their expectations and demands for the Company and to insiston promoting sustainable development of the enterprise together with each stakeholder.

EnvironmentalSocial

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter: Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

Xiamen Xiangyu promotes corporate governance systematization,standardization, and transparency, promotes law-abiding and compliantenterprise operation, increases investor con®êdence and trust, ensuresthe Company's sustained and healthy development, and safeguards thelegitimate rights and interests of investors, and actively wins recognitionand suppo®î from all walks of life.

GOVERNANCE CHARPTERKeep Pace with the Times and Strengthening the

Foundation of the Enterprise

13

14

Xiamen Xiangyu Co.,Ltd.Xiamen Xiangyu 2022 Environmental, Social and Governance Repo®î

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixService Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the NationGovernance Chapter: Keep Pace with theTimes and Strengthening the Foundationof the EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Risk ManagementApproaches

2022 Bussiness Pe®íormance

Total Assets

£¨Unit£º100M, CNY£©

Net pro®êt Attributable to ParentCcompany Owners£¨Unit£º100M, CNY£©

Total Operating Revenue

£¨Unit£º100M, CNY£©

ROE£¨weighted£©

£¨Unit£º%£©

Net pro®êt

£¨Unit£º100M, CNY£©

EPS-Basic

£¨Unit£ºyuan/share£©

Growth Rate Compared to Same Period

Previous Year

Growth Rate Compared to Same Period

Previous Year

Growth Rate Compared to Same Period

Previous Year

Growth Rate Compared to Same Period

Previous Year

Growth Rate Compared to Same Period

Previous Year

Growth Rate Compared to Same Period

Previous Year

958.34

1,150.56

21.94

26.37

2022

2022

2022

2022

2022

2022

2021

2021

2021

2021

2021

2021

1.10

4,625.165,381.48

27.54

37.78

RISK CONTROL MANAGEMENT

Board of Directors Meetings

timesBoard of Supe®ïisors Meetings

timesGeneral Meeting of Shareholders

timesAudit Committee Meetings

timesRemuneration and Assessment Committee Meetings

timesInvestment Development (Strategy) CommitteeMeetings

timesRelease of Periodic Repo®îs to the Public

piecesRelease of Interim Announcements

piecesReplying to SSE E-interactive online Platform

timesAnswering investors' inquiries

callsHandling IR mailbox mail

seals

Diversity andIndependence of theBoard of Directors

Corporate Governance Indicators

20.06

%

20.18

%

16.35

%

0.92

%

37.18

%

18.28

%CORPORATE GOVERNANCE

The Board of Directors of the Company comprises three distinct committees - the Audit Committee, the Compensation and EvaluationCommittee, and the Investment Development (Strategic) Committee. The prima®ñ responsibility of the Audit Committee is to ensurethe accuracy and transparency of the Company¡¯s ®ênancial repo®îs. The Compensation and Evaluation Committee sets pe®íormancebenchmarks for our directors and senior management and is entrusted with the task of designing and reviewing policies and plansrelated to their compensation. Meanwhile, the Investment Development (Strategic) Committee evaluates the Company's strategicdirection, taking into account factors such as investment and business development plans, market dynamics, competition, and emergingtrends. They provide valuable insights and recommendations to the Board of Directors, aiding in informed decision-making.Xiamen Xiangyu established the Data Application Depa®îment in 2021 to provide strong suppo®î for the transformation of digitalintelligence in terms of data strategy development, data governance, platform data application and analysis, and talent training.Over the course of the repo®îing period, several master data such as customer, warehouse, po®î, count®ñ, administrative division andmanagement organization have been implemented online, and over 100 data execution standards and over 200,000 business standarddata have been so®îed out.Over the course of the repo®îing period, it is planned by the Company to introduce two strategic investors, China Merchants andShandong Po®î Group, in order to fu®îher optimize the ownership structure and board of directors composition, which is conducive tothe continuous improvement of corporate governance.

Xiamen Xiangyu follows the business philosophy of "Risk First, Pro®êt Second, and Se®ïice Scale Third", establishing a comprehensiverisk management system and formulating the Management of Risk management, forming a comprehensive and coordinated riskmanagement organization system from the board of directors to the front-line business units, e®ãectively strengthening the Company'sinternal control and achieve sustainable, stable and healthy development of the Company's various businesses and overall operations.

Focusing on the overall risk management goal of "controllable" and "manageable", the Companytakes the internal control construction cycle as the main body, the basic management cycleand compliance management cycle as the "two wings", and uses digitalization of risk control,risk control empowerment and capacity building of risk control organizations as the drivingforce, and grasps the three lines of defense, to form a joint prevention and control, collectiveprevention, and e®ãective mechanism of risk management.

17.14

18.06

The professional background of boardmembers cover various ®êelds such asLogistics, Trade, Finance and Law, etc.

The Board of Directors has 9 members,including 3 independent directors.

Key Performance

Indicators

Number(As of the end of December 2022)

Unit

0.93

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixService Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the NationGovernance Chapter: Keep Pace with theTimes and Strengthening the Foundationof the EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Frontline Operating Units

Headqua®îers Risk Management Depa®îment

Audit Depa®îment and Board Audit Committee

Risk Management Framework

Proactive Risk Control

"Three Lines of Defense" of Risk Management

Risk Management System

The First Line of Defense

The Second Line of Defense

The Third Line of DefenseThe approach we take to risk management involves the use of a risk list to identify and respondto key risks, clear de®ênition of impo®îant control measures through an internal control manual,evaluation of control measure e®ãectiveness, and incorporation into pe®íormance assessmentsto keep risk management within acceptable limits..Main Content

Basic Management Cycle: By constructing a basic management cycle system of "standardized

assembly, operation manual, publication and reading of assembly manual, publicizing andteaching of assembly manual, examination related to quali®êcation, and normalization inspectionand recti®êcation", the Company realizes the construction goal of "standardized pe®íection,e®ãective publicity and strong execution".Compliance Management Cycle: The Company establishs and improve the compliance riskmanagement mechanism to prevent and control compliance risks, with the main connotation of"identifying and evaluating compliance risks, planning and solving compliance risks and achievingobjectives, implementing planning and compliance risk control, pe®íormance evaluation andcompliance repo®îing, and managing non-compliance and continuous improvement."

Two wings

Risk control digitalization, risk control empowerment and risk control organization capacitybuilding.Power

In terms of risk control structure, the Company has established "three lines of defense" for risks, consisting of ®êrst-line business depa®îments,headqua®îers risk control depa®îment, and headqua®îers audit depa®îment, and audit committee.

On the basis of controlling traditional risks such as ®ênancial risks, operational risks, legal risks and market risks, the Company also pays attentionto strategic risks, human resource risks, business structural risks and institutional risks.

Strategic Risk

The Company emphasizes that "recognizing the general trend is the greatest strategy", discuss thenational principles and policies and the domestic and international situation through institutionalizedstudy, and make scienti®êc decisions in line with the general trend.

Human Resource Risk

The Company pays attention to the reasonable collocation and complementarity of age, education,and ability structure of leading bodies and cadres, strengthen senior managers' moral cultivation andability construction, and implement "information moving up, power decentralization, and responsibilityto people" in mechanism.Business Structural Risk

To ensure the right to speak in the indust®ñ, the Company strictly implements capital management,emphasizes the "iron discipline" of capital planning, and pays attention to selecting business varietiesthat are in line with the nature and strategy of the enterprise, maintains the balance among businessvarieties, and requires both controlling concentration and ranking high in the segmentation ®êeld.The general manager of each frontline operating unit is primarily responsible for this depa®îment's risk management and is fully responsiblefor this depa®îment's risk management. The general manager may designate and specify the members of the management team who arein charge of risk management (hereinafter referred to as "risk control leaders"). Risk control leaders should transform the Company's riskmanagement system in their own business units while accepting the guidance and supe®ïision of the Company's ve®îical risk managementfunctional depa®îments and audit depa®îments.

Regularly assess and manage the risks for which the depa®îment is responsible, improve the corresponding internal control system, guidethe risk management of ve®îical depa®îments within various business units, and pe®íorm risk management functions.

he audit depa®îment is in charge of identifying the Company's and each business unit's major risks. The audit depa®îment organizesthe revision of the internal control manual based on the evaluation results, encourages the e®ãective implementation of risk responsemeasures, and organizes the internal control e®ãectiveness evaluation and internal control assessment to promote the realization of therisk management system, according to the risk.The board is in charge of determining the Company's overall risk preference, comprehensively controlling the major risks in the operationprocess, supe®ïising the cultivation of enterprise risk management culture.

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixService Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the NationGovernance Chapter: Keep Pace with theTimes and Strengthening the Foundationof the EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Speci®êc Business RiskManagement andControl

Strengthening the management for contracts and building a solid risk defense lineTypicalCase

Conduct Anti-monopoly Training

In the speci®êc business, Xiamen Xiangyu focuses on the risk of our business model, the risk ofcustomer credit, the risk if commodity prices , and risk of cargo right.

Over the course of the repo®îing period, in order to fu®îher strengthen the contract management capability of frontline operating unitsand grasp speci®êc business risks, we conducted legal knowledge training to provide better suppo®î for contract risk management andprotect the legitimate interests of the Company.

Special Training Site for Contract Management Personnel

Anti-monopoly Training Site

COMPLIANCE MANAGEMENT

Compliance management is the foundation of long-term enterprise development. Xiamen Xiangyu has established a comprehensiveand systematic compliance management system and developed theXiamen Xiangyu Compliance and Governance Policyto ensure thatthe Company's development stays within the bottom line and does not cross the red line, ensuring the Company's steady development.

ComplianceManagementFramework

The Company has established four organizational levels for compliance management: compliancecommittee, compliance manager, headqua®îers compliance management depa®îment, andsubordinate enterprises, as well as three lines of defense for compliance committee decision-making, joint-stock company management, and subordinate enterprise implementation.

Compliance FiskManagement

The Company identi®êes and evaluates the compliance risks associated with all of its businessactivities. On this basis, it pays special attention to key areas such as trade control, antimonopoly,unfair competition, and anti-commercial bribe®ñ, accurately identi®êes and responds to theaforementioned risks in key links such as system formulation, business decision-making, andproduction and operation, and strengthens compliance awareness of key personnel such asmanagers, personnel in high-risk positions, and overseas personnel to e®ãectively preventcompliance rogue behavior.Enhance ComplianceAwareness

?High quality customers:

mainly manufacturingcustomers with stabledemand and controllablecredit?Commodityaggregation: strongcirculation of bulkcommodities, easy toliquidate, easy to store,high turnover?Balanced Structure:

diversi®êcation in businessand product o®ãerings,with va®ñing cycles, allowsfor e®ãective hedging andresults in lower systemicrisk.

The Companystrictly avoidshigh-riskbusinessessuch as upwardand downwardlinkages,circular trade,no ®ìow ofgoods, whole-in and whole-out, to reduceexposure to riskpoints.

The Companyestablishes ent®ñthresholds andassessmentmechanisms todynamically trackcreditwo®îhinessand pe®íormancecapabilities andmatch tradingstrategies.

?Resources: pe®íect logistics system, strict access system?Constraint: separation of "business operation, ®ênancial and logisticrights"?Inspection: "Irregular timing, irregular personnel, irregular positions"warehouse inspection?Pick-up: "the contracting pa®îy, the paying pa®îy, the invoicing pa®îyand the pick-up pa®îy are in agreement"¡¤Three lines of defence¡¤Front-line operations¡¤Headqua®îers risk control¡¤Head o®æce auditing

Source:

model riskRisk ControlBasics

Customers:

credit riskSale of goods andrecove®ñ of paymentPurchase of goods andpayment for goodsUpstreamsuppliers

Logistics andtranspo®î (own/integrated)

Designated warehouse (owned/leased)Logistics and transpo®î (own/integrated)

Logistics andtranspo®î (own/integrated)

Downstreamcustomers

Logistics:lending rights risk

?Dynamic deposit management?Flexible settlement options (seconda®ñ pricing, formula settlement)?Scienti®êc use of ®ênancial instrumentsCommodities: price risk

TypicalCase

The Company establishes an institutionalized and normalized compliance training mechanism,organizes front-line employees and key employees to pa®îicipate in compliance training on aregular basis, ensures that employees understand and follow corporate compliance objectivesand requirements, and e®ãectively grasps post-related compliance management knowledgeand compliance risk management capabilities.Over the course of the repo®îing period, the Company organized special trainings such as"Enterprise Compliance under Anti-monopoly Compliance","Interpretation ofFutures andDerivatives Law" and "Enhancing Compliance Awareness under Anglo-American Legal System"to help employees improve their compliance awareness, enhance their personal legal literacy,and prevent and reduce enterprise legal risks.

The Corporate Risk Governance Center's Legal A®ãairs Depa®îment presented a lectureon Corporate Compliance and Centralized Declaration of Operators under the New Anti-monopoly Regulationsand invited expe®îs on this subject to interpret the new regulations.Invited expe®îs systematically interpreted the key points and highlights of the Amendmentto the Anti-Monopoly Lawin the context of the basic rules and compliance points in threekey areas: monopoly agreement, abuse of market dominance, and centralized declarationby operators, using typical law enforcement and judicial cases.The lectures were rich and in-depth in professional content and lively in atmosphere, whiche®ãectively enhances the understanding of theAnti-Monopoly Lawof relevant functionaldepa®îments and business units of the Company and strengthens the compliance awarenessof relevant personnel.

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixService Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the NationGovernance Chapter: Keep Pace with theTimes and Strengthening the Foundationof the EnterpriseSustainabilityManagementAboutXiamen Xiangyu

The Number of Organizational Compliance Trainings

sessionsThe Number of Organizational Board Members,Executives, and Senior Managers Pa®îicipating inCompliance-related Training.

sessionsThe Number of Compliance-related ComplaintsReceived

casesThe Number of Compliance-related ComplaintsHandled

casesThe Number of Regulato®ñ Documents Relatedto Risk Management, Commodity Trading, andCompliance

items

Indicators

Number(As of the end of December 2022)

UnitCompliance

Key Performance

MERCHANT MANAGEMENTThrough internal management improvement and external resource empowerment, Xiamen Xiangyu is collaborating with its pa®îners tocontribute to the upgrading of the indust®ñ, and continuously create sustainable social value and maximizing corporate value.

Customer RelationshipManagement

Customer satisfaction is the impo®îant foundation for sustainable business development.Xiamen Xiangyu adheres to the strategic mindset of "basing on the supply chain, se®ïing theindustrial chain and creating the value chain", and takes advantage of its own strengths tocontinuously provide customers with quality and diverse products and se®ïices, and growtogether with them.

Delivering High-quality Products

Empowering Customer Development

For standardized industrial products such as ferrous metals, aluminum, stainless steel, new energy and coal, the quality requirementsfor the products are included in the purchase agreements with suppliers to ensure that the products delivered to customers meet thecommon quality standards of the indust®ñ.

Xiamen Xiangyu is committed to helping customers reduce costs and increase e®æciency, promoting industrial transformation and upgrading,and improving market e®æciency through the "four-in-one" supply chain integrated se®ïice platform. Through scale empowerment,management empowerment, ®ênancial empowerment and logistics empowerment, the Company provides se®ïices such as raw materialprocurement and supply, ®ênished product distribution, logistics and transpo®îation for small and medium-sized manufacturing enterprises.

Based on the pain points of the indust®ñ, such as the large number of production links, the large physical span and inconvenient circulationof each production link, Xiamen Xiangyu relies on its large span and multi-link multi-model logistics se®ïice capability to link up thewhole indust®ñ chain, such as bauxite ore from overseas, alumina from Henan and Shandong, electrolytic aluminum from Xinjiang andInner Mongolia, and aluminum products from the eastern coast, and provide guarantee for the supply of raw and auxilia®ñ materials foreach manufacturing link. At the beginning of 2022, when the central region was blocked due to the epidemic, an electrolytic aluminumcompany in no®îhwest China faced the risk of "chain breakage" due to the lack of upstream materials, Xiamen Xiangyu integrated itslogistics resources, optimized its transpo®î routes and gave full play to its own multi-model transpo®î advantages to protect the company'sproduction "lifeline".Our subsidiaries have successfully implemented ISO 9001 quality management systems and HACCP food safety management systems,demonstrating e®ãective operational practices and ensuring high standards of quality and food safety.

Comprehensive Quality Management System

The Company establishes a system of responsibility for food quality and safety from the general manager to thegrassroots sta®ã, strengthens quality communication and collaboration between all depa®îments and levels withinthe enterprise, and organizes regular training and education on quality management for all sta®ã to ensure that eve®ñemployee grasps the basic knowledge and requirements of quality.

All Handson Deck

The Company establishes quality inspection and monitoring mechanisms for each process of purchasing, storage,production, inspection, sales and se®ïice, conducts regular checks on the quality of each process, and collects,analyses and repo®îs on quality data with the suppo®î of information systems, provides timely feedback and takescorrective measures when necessa®ñ.End-to-endControl

The Company conducts strict screening and evaluation of suppliers, selects suppliers with sound quality control systems andpe®íormance capabilities, conducts regular quality audits and evaluations of suppliers; benchmarks advanced enterprises inthe indust®ñ to reduce waste and variation and ensure stable product quality; establishes incentive mechanisms for qualitymanagement, including but not limited to setting up quality rewards and quality assessment, to encourage employees toactively pa®îicipate in quality risk management.

MultipleApproaches

Multi-model transport provides relief to downstream customers,stabilizes production in the aluminum industry chain

TypicalCase

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixService Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the NationGovernance Chapter: Keep Pace with theTimes and Strengthening the Foundationof the EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Data acquisition

¡ô Client leakage: the end user sends out impo®îantdocuments with sensitive information.¡ô Internal personnel factors: internal personnelmaliciously modify data, que®ñ sensitive data inbatches, maliciously destroy the database or que®ñsensitive information.¡ô Business code factor: data leakage caused bybusiness code defects.¡ô Third-pa®îy factors: the development pa®înerleaked the test data; basic se®ïice provider leaksmanaged data.

¡ò Data classi®êcation

Full-cycle user rightsmanagement:

¡ôUser authentication¡ô Personnel audit¡ô Isolation of Data AccessPermission¡ô Isolation of ApplicationPermission¡ô Isolation of StoragePermission¡ô Isolation of DataManipulation Permission

Data storage

¡ò Data enc®ñption storage¡ò Data backup recove®ñ¡ò Anti-blackmailingDatatransmission

¡ò Data transmission enc®ñption¡ò Data leakage prevention¡ò Identi®êcation¡ò Network isolation

Data usage

¡ò ID authentication¡ò Access control¡ò Database operation andmaintenance control¡ò Static desensitization¡ò Data enc®ñption¡ò Data leakage prevention

Data exchange

¡ò Data enc®ñption¡ò Digital watermark

Data destruction

¡ò Prevention of recove®ñ¡ò Process audit

StageRiskCountermeasure

Supplier Management

Responsible Value Chain Initiative

Xiamen Xiangyu prioritizes the sustainable development of the industrial and supply chains,pe®íorms life cycle management for suppliers, and prioritizes environmental and socialresponsibility in all aspects such as access and evaluation. The Company establishes the SupplyChain Development Depa®îment, establishes and improves the cooperation mechanism withpa®îners, continuously improved the ability to connect upstream and downstream customers inthe industrial chain, and contributes to the development of a sustainable supply chain.

Systemguarantee

Routinemanagement

Construct a management network with business processes as the latitude and postnodes as the longitude.The Company establishes a sound management system, and clarify the requirementsfor environmental protection of suppliers, safety in production and protection ofemployees' rights and interests in each link, so as to provide a basis for supply chainmanagement.

Information Collection: the Company takes labor disputes, safety production penaltiesand other matters as long-term concerns, and assesses supplier labor managementbased on open resources regularly; If the supplier is found to have malicious fraud,invasion of privacy or unfair competition, it will be included in the list of prohibitedcooperation.Public Sentiment Monitoring: the Company establishes public opinion monitoringmechanism, continuously pays attention to the trends of suppliers in environmentalprotection, and lists negative information on environmental protection as highlyconcerned risks. The evaluation results will a®ãect the cooperation between theCompany and suppliers.Field Investigation: the Company conducts face-to-face investigation and exchange,evaluate the supplier's operation and working environment, and pays attention to safetyproduction and the protection of employees' rights and interests. For manufacturingsuppliers, the Company puts forward clear requirements for environmental protectionissues through the feedback list, and pays attention to the compliance of productionand pollution prevention equipment and technology during ®êeld visits to ensure thatsuppliers ful®êll their responsibilities.

DATA SECURITY MANAGEMENTA large number of impo®îant data assets are generated and stored in the daily operation process, as a result of the planning and promotionof the Company¡¯s digital construction and the o®æce, business processes turning to online, paperless and intelligent. Thus, data security hasevolved into an essential component of the Company's smooth operation. Xiamen Xiangyu places a high value on data security managementand developed theXiamen Xiangyu Information Security Management Policywith the policy of "prevention ®êrst, keeping the bottom line in mind,and continuous improvement" to continuously improve the information security management system, ensure the con®êdentiality, integrity, andavailability of information, and ensure the Company's business sustainability. The Company established an information security managementframework with the Information Security Management Committee as the highest deliberation and decision-making body, the InformationSecurity Working Group as the executive body, and the information security leaders of subordinate enterprises as the ®ênal implementation interms of information security management organization construction. Members of the Information Security Management Committee collaboratewith members of the Digital Transformation Committee to ensure information security during the Company's digital transformation.Focusing on the risk of data leakage and destruction that may occur in all aspects of the data life cycle, the Company has adopted systematictechnology and management schemes to ensure the safety and reliability of the data life cycle. Over the course of the repo®îing period, theCompany found no business data security risk events.

Xiamen Xiangyu is committed to integrating resources includingdistribution channels, logistics, transaction data, etc. It providescomprehensive supply chain solutions for customers, aiming to facilitatethe high-quality transformation of the bulk supply chain indust®ñ.

SERVICE CHAPTERPursuing Pro®êt for the World's Well-being, Se®ïicing

for High-quality Development of the Nation

25

26

Xiamen Xiangyu Co.,Ltd.Xiamen Xiangyu 2022 Environmental, Social and Governance Repo®î

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagement

Service Chapter: Pursuing Profit for theWorld's Well-being, Servicing for High-qualityDevelopment of the NationAboutXiamen Xiangyu

Xiamen Xiangyu continues to provide "all-around, multi-level, and wide-ranging" se®ïices while focusing on the core demands ofmanufacturing enterprises' customers. Xiamen Xiangyu strives to be at the forefront of the indust®ñ in terms of business modelleadership by enriching the commodity mix, optimizing the customer structure, iterating the business strategy, and improving the pro®êtstructure, etc.

Customer Structure

To meet market demand and align with the Company's business philosophy, the product must possess high liquidity, be highly standardized foreasy storage, and experience high demand with a long supply chain within the indust®ñ, allowing for comprehensive se®ïices across multiplelevels. The Company's prima®ñ focus is on the bulk commodities market, where it operates in four main categories: metallic minerals, agriculturalproducts, energy and chemicals, and new energy. Its diversi®êed business scope is re®ìected in its six core products: ferrous metals, aluminum,stainless steel, grains, coal, and new energy.

The Company has consistently improved our customer structure by prioritizing manufacturing enterprise customers and investing in se®ïiceo®ãerings. As of 2022, manufacturing enterprise customers represent over 50% of our customer base and contribute 60% of our commoditybusiness. Pa®îicularly notewo®îhy is the fact that they make up over 90% of our customer base in the new energy supply chain, and more than60% in the black metal, stainless steel, aluminum, and coal supply chains. Additionally, we provide se®ïices to more than 50% of customers in thegrain and raw materials supply chain.

The Company's pro®êt model is built around generating revenue from se®ïices and leveraging economies of scale. This strategy provides a robustfoundation for stable pro®êtability. By expanding our presence in new regions, customer segments, and commodity categories, as well as o®ãeringa wide range of se®ïices, we are able to consistently improve our business pe®íormance. We also take advantage of price di®ãerences to maximizepro®êtability during commodity price ®ìuctuations.The Company sources goods directly from upstream suppliers in order to optimize our supply chain and reduce costs, while simultaneouslyincreasing se®ïice revenue. By collaborating with other industries, we are able to achieve steady growth in scale and expand our revenuepotential. Our extensive customer and logistics network, combined with in-depth research on industries and commodities, enables us tomanage positions in a scienti®êc manner, resulting in increased revenue from price di®ãerentials.

BUSINESS MODEL

Raw Material

Supplier ASupplier B

ProcurementWarehousingDistributionFinancingTranspo®î

Traditional Supply Chain Se®ïice ModelConnecting multi-pa®îy, while se®ïing single link

XIANGYU Supply Chain Comprehensive Se®ïice

Commodity Mix

Business Strategy

Pro®êt Model

XIANGYU Se®ïice ModelPhase1.0: Integrate needs, and provide comprehen

ProcureFinanceTranspo®îDistribute

StoreConsult

Supply Chain Se®ïice

Clients amid ChainProducer AProducer AProducer AProducer AProducer BProducer BProducer BProducer BProducer CProducer CProducer CProducer C

Link 1Link 2Link 3Link N

Supply ChainSe®ïices Providers

Supply ChainSe®ïices ProvidersRaw MaterialCirculation

XIANGYULeading Area

XiangyuCut-in Area

XIANGYULeading Area

ManufacturingProcess withempowered value

Supply Chain Se®ïicesSupply Chain Se®ïices

Supply Chain Se®ïices

ManufacturedGoodsCirculation

Customized Supply Chain Se®ïices Solutions

Needs Integration

XIANGYU Digital IntelligenceSe®ïices System

AI Tech ModuleAlgorithm ModuleData Platform Module

CombosProcessLogistics QualityCredit mgt. Risk mgt.Inv. mgt.

Producer AProducer BProducer CLink 1

Producer AProducer BProducer CLink 2

Producer AProducer BProducer CLink 3

optimizationRegionReplacement

IntegrationQualityReplacement

Optimization

Clients amid Chain

XIANGYU Se®ïice ModelPhase2.0: Complete Indust®ñ Chain Se®ïices

XIANGYU Se®ïice ModePhase4.0: Digital Intelligence Se®ïices

XIANGYU Se®ïice ModelPhase3.0: Indust®ñ Chain Operation

RawMaterial

Supplier CSupplier DSupplier ASupplier BSupplier CSupplier D

Supplier ASupplier BSupplier CSupplier DSupplier EProductionProduction

ProcureStoreDistributeConsultFinanceTranspo®î

Producer AProducer BProducer CProducer DProducer AProducer BProducer CProducer D

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagement

Service Chapter: Pursuing Profit for theWorld's Well-being, Servicing for High-qualityDevelopment of the NationAboutXiamen Xiangyu

By utilizing technologies such as the Internet of Things (IoT), big data, and a®îi®êcial intelligence (AI), the Company has accelerated the real-timemonitoring and optimization of the entire logistics process, including transpo®î and warehousing management, and promotes real-time datasharing across all segments of the supply chain. This improves data accuracy and transparency, enabling customers to predict demand, controlinvento®ñ, reduce out-of-stock risk, quickly respond to market changes, and enhance competitive advantages.

Sma®î logistics platform

Sma®î Logistics Se®ïice Platform

The electronic signature platform has been introducedto realize the digitalization and traceability of the wholedocument circulation.Using blockchain electronic warehouse receipts to ensure theauthenticity of warehouse receipts and signing intentions,and improve credibility and circulation e®æciency.

Online Se®ïicePaperless operation in the warehousing process has beenrealized with the help of mobile scanning devices, andintelligent management of the entire process of "storage,invento®ñ, and delive®ñ" has been realized.

Process Automation

Full-process management of goods£ºThe Company employs technologies such as blockchain and AI-driven Internet of Things toconstruct a digital warehouse. Moreover, it establishes an intelligently networked platform, built on a 'cloud, edge, and endpoint'framework, that amalgamates Internet of Things, edge computing, and senso®ñ equipment. This setup enables the comprehensivemanagement of goods throughout all stages including storage, delive®ñ, and stocking.

Monitoring of weighthouses£ºThe unattended weighthouses are monitored in real time by using 3D digital twin technology, so asto realize the dynamic tracking of grain ha®ïest in each grain base.Cargo rights control: The warehouse inspection process and data are stored through cloud technology by using unmanned aerial

vehicle (UAV) warehouse inspection, video su®ïeillance and identi®êcation, infrared grating and other technologies, so as to realizereal-time and previous inqui®ñ and fully guarantee the safety of cargo rights.

Visual Representation of Prope®îy in Goods

The Company has established a full-se®ïice layout that covers all aspects of the production process, from pre-production to post-production,including seed and fe®îilizer se®ïices, agricultural planting, grain storage, logistics transpo®îation, raw material supply, and grain processing.In the production process, with the suppo®î of seven major grain procurement, warehousing, logistics platforms, and a comprehensive No®îh-South transpo®îation logistics se®ïice system, the Company leverages its professional operational advantages to reduce operating costs andincrease e®æciency. In terms of distribution, the Company is dependent on seven key platforms for grain purchase, storage, and logistics,alongside a logistics se®ïice system for transpo®îing grain from the no®îh to the south. By leveraging its operational specialization and scalebene®êts across all segments, it signi®êcantly reduces marginal operating costs, and enhances operational e®æciency and pro®êt levels.In the distribution process, the Company has established soybean pressing plants and provides comprehensive supply chain se®ïices,including soybean procurement, sales of soybean oil and meal, and logistics transpo®îation, to enhance its bargaining power and optimizeits capital turnover rate.Over the course of the repo®îing period, the Company supplied over 10 million tons of raw materials annually to large-scale breeding, feed,and deep processing enterprises, such as Wen's Foodstu®ã Group Co., Ltd., Shuangbaotai Group Co., Ltd., Haida Group Co., Ltd., and Yihaiker®ñGroup Co., Ltd., making it the largest corn indust®ñ chain se®ïice provider in the A-share market.

Operation Mode of Grain Industry Chain

From a strategic perspective, the Company places a high value on digitalization construction, leveraging its massive transaction data,extensive customer resources, and rich application scenarios to actively transform towards digitization. Guided by the digitalization andintelligence strategy, the Company promotes the implementation of innovative projects such as sma®î logistics platforms, "YuLianTong"digital supply chain se®ïice platform, and an industrial-level internet platform for agriculture. Through technological innovation, we aimto achieve higher levels of economic productivity.

THE TRANSFORMATION OF THE COMPANY'SDIGITAL INTELLIGENCE

Operation Mode of Grain Indust®ñ Chain

IndustryPain Points

Agricultural indust®ñ and Internet platform

Seeds, fe®îilizers,agricultural machine®ñ,agricultural materials, etc

Planting (includingorder planting)

Acquisition, screening, d®ñing,warehousing (including national rese®ïes),transpo®îation, distribution, etc

Soybean crushing,concentration,fermentation, etc

End customersBefore productionAfter productionProcessingIn productionXiangyu Solution

Procurement and sales

channel integration

Logistics systemoptimization

Capital e®æciency

improvement

Commodity value

mining

The spatial distancebetween the placewhere food isproduced and where itis consumed is longThe main body of grainproduction is generallysmall and scatteredSpecialization andcomplexity of foodcirculation

TypicalCase

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagement

Service Chapter: Pursuing Profit for theWorld's Well-being, Servicing for High-qualityDevelopment of the NationAboutXiamen Xiangyu

Established a multi-model transpo®î logistics system of " Road Transpo®î, Rail Transpo®î, WaterTranspo®î, and Warehousing ".Highway: There are over 1,300 self-owned vehicles and 57,000 social vehicles, with

an annual transportation capacity of over 9 million tons.

Railway: It operates 14 railway freight stations, suppo®îing 47 special railway lines, more than 2.2million square meters of container yards and warehouses, and more than 25,000 self-containedcontainers, with an annual shipping capacity of over 35 million tons.

Water transportation: We established strategic partnerships with high-qualityport and shipping enterprises under China Merchants Port, Shandong Port,COSCO Marine, Qingdao Port, Lianyungang Port, and Rizhao Port, and integratedtransportation capacity to achieve an annual transportation capacity of more than25 million tons for domestic coastal areas and the Yangtze River Basin.Storage: our storage capacity exceeds 13 million tons, equipped with 9 special

railway lines; 45 self-owned and chartered warehouses with an area of over 1.5million square meters; 8 yards, covering an area of over 450,000 square meters.

Multi-levelLogistics Resource

Allocation

Xiamen Xiangyu Express is closely related to the pulse of the times and builds a digital warehouse

Intelligent Storage, Delive®ñ and Freight ForwardingInternet of Things Uni®êed Monitoring Platform

Small and medium-sized businesses have long faced the problem of "di®æcult ®ênancing,expensive ®ênancing, and complicated ®ênancing" due to a lack of e®ãective collateral. It isdi®æcult for ®ênancial institutions to assess the creditwo®îhiness of small and medium-sizedbusinesses, and the transaction targets are "incomprehensible, uncontrollable, and di®æcult tohandle" making it extremely di®æcult to control the risks for banks.Xiamen Xiangyu is leveraging our comprehensive resource integration capabilities, multi-dimensional logistics resource layout, and digital risk management system, has created the"YuLianTong" digital supply chain se®ïice platform. The Company se®ïes as a trusted databridge between banks and clients, helping ®ênancial institutions control risk while broadening®ênancing channels for small and medium-sized enterprises.

IntelligentProcess

The application rate of electronic signature platform reaches 95%.The construction of automatic weighthouse can shorten the weighing time of vehiclesentering and leaving the site by 50% and 75% respectively, and realize informationsynchronization.

OnlineSe®ïice

Build an internal and external interconnection platform.Customers can view the warehouse goods and inventory data through multiple wayssuch as on PC side, WeChat official account and APP.

Visualization ofCargo Rights

Build an Internet of Things (IoT) platform to realize a "visible, manageable and in-time warning" cargo rights control mechanism.It is equipped with all-weather uninterrupted real-time monitoring service andelectronic fence function to provide customers with all-round control and protectionof cargo rights.

The ability to consolidate industrial resources and our operational ability constantly to improve.Over the course of the repo®îing period, the business volume of ferrous metals, aluminum,stainless steel, grain, thermal coal and new energy materials were 76.75 million tons, 21.74 milliontons, 16.06 million tons, 14.46 million tons, 53.96 million tons and 210,000 tons respectively.All-around ResourceIntegration Ability

Digital RiskManagementSystem

Credit risk:

Customer's credit standing: check customer's credit standing by combining customer operation,transaction pe®íormance and credit data.The transaction ®ìow: the application of blockchain and electronic warehouse receipt can betraced back to the whole process.Market risk:

Commodity screening: combined with the main business, choose the catego®ñ with goodliquidity, relatively stable price, fair market price and comparative advantage.Process management: dynamic management, marking and early warning, and real-timeperception of market price ®ìuctuations.Commodity disposal: depending on the Company's bulk supply chain operation andmarketing channel system, goods can be quickly disposed and realized.Legal risks:

The ways of risk control include the formulation of contract text clauses in the wholeprocess, the guarantee of real rights, warehouse receipts and the validity of electronicsignatures.

Operational risk:

Prevent operational risks through mechanism control, system guarantee and digitalmanagement.

Xiamen Xiangyu Express is a Xiamen Xiangyu-owned integrated logistics company. Xiamen Xiangyu Express hasconsistently invested resources to build a smart logistics platform, solve industry pain points, and improve serviceexperience, with the goal of addressing the problems of complex and time-consuming traditional warehousingmanagement processes, inefficient traditional service, and difficult control of goods rights.

"YuLianTong" DigitalSupply Chain Se®ïicePlatform

Core Resources/Capabilities of Xiamen XiangyuTypicalCase

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagement

Service Chapter: Pursuing Profit for theWorld's Well-being, Servicing for High-qualityDevelopment of the NationAboutXiamen Xiangyu

"YuLianTong" Digital Supply Chain Se®ïice Platform

Food holds a vital place when it comes to ensuring national security and the welfare of people. The Company has dedicated itself toaligning with the national food security strategy and has ensured the growth of traditional agriculture through the integration of digitaltechnologies. We strive to enhance the e®æciency of grain circulation and secure the domestic food supply chain while contributing tothe ongoing transition towards agricultural modernization. By doing so, the Company fo®îi®êes the "ballast" of national food security.

Industrial-level Internet Platform for Agriculture

Key Pe®íormance:

"YuLianTong" digital supply chain

service platformhas obtained special credit for

customers

Nearly

billion yuan

In 2022,"YuLianTong" digital supplychain service platformhelps customers obtain the totalamount of a cumulative credit usage

Bad debt rate of"YuLianTong" digital supply

chain service platform in

2022

In the upstream

In order to strengthen our position in the grain indust®ñ, we have formed a strategic alliance for grain planting and launched the"Xingxing Xiangnong" app, o®ãering farmers essential se®ïices like agricultural material procurement, sales, and technology consulting.These measures help us to control ®êrst-hand sources of grain and expand our variety, while addressing common indust®ñ problems.

Our Company has strategically built a grain warehouse point alliance by consolidating various third-pa®îy storage nodes across multipleregions. This approach has signi®êcantly increased the density of our grain procurement network, expanded our coverage, and allowedus to penetrate deeper into the indust®ñ. By addressing long-standing issues such as selling and warehousing di®æculties, this alliance ispoised to se®ïe a wider clientele across Heilongjiang to Jilin, Liaoning, and beyond.

The Company established a highly e®æcient alliance within the grain circulation indust®ñ. Through the implementation of our No®îh toSouth Grain Diversion logistics se®ïice system, we were able to seamlessly reallocate a diverse range of high-quality raw grains to meetthe demands of feed, livestock, and deep processing companies in various regions. This innovative strategy e®ãectively addresses theindust®ñ's challenges related to time and location discrepancies between production and consumption, ultimately bene®êting our clients.

Indust®ñ-level Agriculture Internet Platform

Front SectionGrain Planting Indust®ñ Alliance

Middle SectionGrain Warehouse Alliance

Later Section

Grain Circulation Indust®ñ Alliance

AgentGrowerCooperativeFarmLogistics ProviderAgricultural Materials

Provider

Financial InsuranceAgricultural Machine®ñ

Provider

Government

Grain LogisticsGrain Producer

Grain Storage

Futures InsuranceGrain UserFinancialInstitution

DataCompany

XIANGYU-owned Warehouses

Third-pa®îy Warehouses

Over

.

billion yuan

Funding sideCustomer side

Financial suppo®î

"YuLianTong" Digital SupplyChain Se®ïice PlatformCargo regulato®ñ

and riskmanagement

Platform access

Digital asset ce®îi®êcates(electronic warehousereceipts, etc.)

Platform se®ïicefeeYucangrongYucairongYuturong

In the midstream

In the downstream

Warehouse receipt pledge

Xiammen Xiangyu places great emphasis on providing a conduciveand secure work environment for its employees, while simultaneouslyfocusing on their career development and growth oppo®îunities. TheCompany is committed to achieving mutual progress, wherein employeesand the enterprise grow and prosper together. In addition, ful®êllingcorporate responsibilities is of utmost impo®îance to Xiammen Xiangyu,and hence, we regularly organize sta®ã to pa®îicipate in volunta®ñ andcharitable activities aimed at making signi®êcant contributions towardsbuilding a better society.

SOCIAL CHAPTERCooperate and Bene®êt Mutually towards

a Win-win Situation

35

36

Xiamen Xiangyu Co.,Ltd.Xiamen Xiangyu 2022 Environmental, Social and Governance Repo®î

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the NationPROTECTION OFEMPLOYMENT RIGHTS

Basic Rights andInterests

The Number of Employees in Xiamen Xiangyu Headqua®îers

personsThe Number of Employees in the Main Subsidiaries7,746personsTotal Number of Employees8,191personsBy Gender

The Number of Male Employees5,357personsThe Number of Female Employees2,834personsBy Age30 and Under2,813personsBetween the Ages of 30 to 403,013persons40 and Above2,365personsBy Academic Quali®êcationsDoctor Degree

personsMaster¡¯s Degree

personsBachelor¡¯s Degree3,585personsCollege Degree1,553personsVocational High School and Technical Seconda®ñ School

personsHigh School and Below1,810personsBy RegionThe Number of Employees working in Mainland China8,120personsThe Number of Employees Working in Hong Kong, Macao,Taiwan and Overseas Regions

persons

Indicators

Number(As of the end of December 2022)

UnitEmployee Structure

Xiamen Xiangyu strictly abides by labor-related laws and regulations, formulates rules andregulations such asEmployment Contract Management Policy, Compensation ManagementPolicy,Attendance and Leave Management,establishes a standardized labor relationsmanagement system, and fully protects the legitimate rights and interests of all employees.The Company pays special attention to the protection of the rights and interests of femaleemployees. In order to prevent the occurrence of sexual harassment, theOccupationalEthical Risks Management Policywas revised over the course of the repo®îing period, clearlystipulating that "employees must refrain from sexually harassing colleagues, violating familyethics or social norms, or breaking the law, and should consciously purify their circle of friends,social circles and life circles." At the same time, in the company'sSpecial Collective Contractfor the Protection of Special Rights and Interests of Female Employees, the provisions on theprotection of special rights and interests of female employees are fu®îher clari®êed to e®ãectivelysafeguard the legitimate rights and interests of women.

The company treats employees with di®ãerent nationalities, races, ethnicity, genders, religious beliefs and cultural backgrounds equally. In theregular inte®ïiew process, according to the characteristics of di®ãerent positions at di®ãerent levels, the combination of selection methods, suchas line test, professional evaluation, personality evaluation and background investigation, is used to evaluate the candidates in an all-round andscienti®êc way, and the inte®ïiewer's talent selection ability is improved by means of inte®ïiewer handbook, inte®ïiewer training and ce®îi®êcation,so as to minimize the in®ìuence of inte®ïiewer's subjective factors and provide a level playing ®êeld for the inte®ïiewer according to objective andscienti®êc evaluation methods.

Female Employee BenefitsAccording to theMeasures for the Female Employees Management Measures, threeperiods of leave (pregnancy, childbi®îh and lactation) shall be implemented accordingly.Implement the system of regular physical examination for female employees and organizephysical examination for female employees eve®ñ year.Create exclusive se®ïices such as psychological care courses for female employees, restand breastfeeding rooms for female employees, and summer custody classes, etc.

The sustainable development of any enterprise largely depends on its workforce, and at Xiamen Xiangyu, we recognize the invaluablecontribution of our employees towards achieving our goals. The Company¡¯s recruitment policies prioritize quali®êcations and not justacademic credentials, and we ensure that fairness and equality prevail in our hiring, training, and retention processes. We o®ãer equaloppo®îunities to all employees, regardless of their background, enabling them to realize their career aspirations and excel in theirroles. Fu®îhermore, our continuous e®ão®îs in enhancing our corporate culture, employee bene®êts, and upholding health and safetymanagement systems create a warm and nu®îuring work environment, promoting employee happiness and wellbeing.

TypicalCase

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

In order to help employees relieve their psychological stress, Xiamen Xiangyu launched theEmployee Psychological Assistance Program (EAP) in 2020, providing employees with di®ãerentforms of psychological care se®ïices including 24-hour psychological consultation hotline,group counseling, one-on-one counseling and mental health talks. At present, caring se®ïiceshave been provided to 162 employees at di®ãerent levels to improve their mental healthconditions. Over the course of the repo®îing period, the Company also launched a specialprogram of psychological care and counseling for senior managers, in which 120 investmententerprise executives pa®îicipated, e®ãectively helping the senior management team to relievethe psychological pressure.The Company's trade unions built a brand of "Encounter something beautiful in XiamenXiangyu" series of activities, combined with Xiamen Xiangyu corporate culture, andincorporated elements such as temple fairs, food, puzzles, etc., and successively carried outthe Lantern Festival cultural temple fairs, the reading of workers' pleasure, and the themeactivities such as "Dedicate yourself and you will win" to enrich employees' spare time. We willactively promote Xiamen Xiangyu's "home culture", convey the company's humanistic care, ande®ãectively improve the sense of employee well-being, satisfaction and acquisition throughthe activities of expatriate employees' home visits, traditional festivals of overseas companies,family open days and Dragon Boat Festival family banquets. Over the course of the repo®îingperiod, we have visited around 73 employees and their families.

Compensationsand bene®êts

Employee careXiangyu launched the EmployeePsychological Assistance Program(EAP) since 2020

The program has provided carese®ïices to employees at di®ãerentlevels cumulatively

2022 Senior Managers CareCounseling Program Se®ïed

The Company advocates the cultural conceptof "Happiness at Work, Health in Life". Weare seizing the Spo®îs Year of Xiangyu Groupas an pe®íect oppo®îunity to bolster ouremployee interest groups. We have activelycompeted in Xiangyu Group's basketball,football, badminton, and table tennis andother competitions. Moreover, during breaks,we actively promote invigorating exerciseslike "o®æce aerobics" and "eye exercises". Ouraim is to encourage all employees to cultivatehealthy exercise habits and create a relaxedand pleasant working atmosphere.

Xiangyu pays special attention to the reliefand assistance of employees in di®æculty.Through the Xiangyu Group's Spring RainFund project, the Company sets up a year-round fund-raising channel and organizesan annual "one-day donation" activity andspecial relief projects, and accepts employeedonations on a volunta®ñ basis. All donationsare used to sympathize with and subsidizeon-the-job employees and retired employeeswhose families are in di®æculties due to majordiseases, accidents and other reasons.

Encounter something beautiful in Xiamen Xiangyu and spend the holiday together.

Friendly Football Match

Examples of Employee Bene®êts

Key Performance

The Amount of SubsidiesProvided by the Labor Unionfor Employees in Need

24.4

10K, CNY

The Amount of Maternity andMarriage Congratulations AllowancesProvided for Female Employees

11.44

10K, CNY

Xiamen Xiangyu pays attention to improving the sala®ñ and welfare system, and providesbetter living guarantee for employees by establishing a reasonable sala®ñ and welfarestructure and standardized sala®ñ and welfare standards. The sala®ñ of employees in theCompany mainly consists of basic sala®ñ, sala®ñ based on the job position, sala®ñ based onthe year of se®ïice and bonus. In terms of sala®ñ adjustment mechanism, the Company'simplements annual sala®ñ ®êxing plan, and advocates the distribution system of "being able togo up and down, and changing sala®ñ from post to post", which not only promotes potentialemployees with both ability and political integrity, but also adjusts employees who are reallyunsuitable for posts to help employees ®ênd the most suitable positions for them. At the sametime, the Company continues to car®ñ out sala®ñ benchmarking to keep employees' incomecompetitive in the same region, the same company, the same position and the same ability,and repay employees' contribution to the enterprise. The Company also provides employeebene®êts, conducts internal and external benchmarking eve®ñ year, and continuously improvesthe employee experience. In addition to basic social insurance, the Company provides housingaccumulation fund, diligent leave, commercial insurance, paid leave and other conventionalbene®êts, transpo®îation subsidies, lunch subsidies, holiday subsidies, heating and heatstrokeprevention subsidies, communication subsidies, employee restaurants, employee gyms, healthcheckups, new employee dormitories and other bene®êts to achieve full coverage of livingbene®êts. At the same time, each overseas platform company has been established a welfaresystem in line with local policies to provide protection for locally recruited sta®ã.In order for employees to better share the achievements of enterprise development andrealize the common development of individuals and organizations, the Company launchedequity incentive plans in 2020 and 2022 respectively, with the total amount of incentivesreaching almost 8% of the total share capital, and the incentive targets covered more than1,000 core managers and front-line business team members.

Live in XiangyuGrand Slam Series of Employee BeneþÎts

Play in XiangyuGrand Slam Seriesof Employee BeneþÎts

Eat in XiangyuGrand Slam Series of EmployeeBeneþÎts

In the form of cultural temple fairs, theCompany integrates essential elementsof traditional culture such as thedisplay of lanterns, the engagementin lantern riddles, the art of windowpaper-cutting, the creation of sugarfigurines, the pastime of hoop tossing,and the performance of dragondances. This allows the conventionalcelebration to be adorned withcontemporary characteristics, crafting amillennium-spanning cultural odyssey.

In the name of family banquet, employeesteamed up to cook and jointly createda gourmet feast, inviting employees'families to get together, tasting deliciousfood, and feeling the warmth and beautyof Xiamen Xiangyu family together.

The Company focuses on promotingthe spiritual connotation of Minnanpeople's "dedicate yourself and youwill win". Through cultural puzzles andMid-Autumn Festival "platter", we canfeel di®ãerent "dedication" culture intraditional folk customs.

At the Lantern FestivalAt the Dragon Boat FestivalAt the Mid-Autumn Festival

TypicalCase

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

Xiamen Xiangyu Shengshi Container Co., Ltd. (hereinafter referred to as "Xiangyu Shengshi"), a subsidia®ñ of Xiamen Xiangyu, has madethe concept of "safety ®êrst" deeply rooted in employees¡± minds, and gradually formed 10 safety cultures of Xiangyu Shengshi (referredto as "10 rules of Shengshi"), through the establishment of the systematic and standardized safety management system, and e®ãectivelyimproving the personal safety protection ability of employees and the level of safety protection of all the sta®ã.

Keep in mind the bottom line of safety production and create a safety culture space

Xiangyu Shengshi Safety Cultural Space

Xiamen Xiangyu has actively organized its subsidiaries to conduct safety drills and accumulatingpractical experience in emergency response training such as ®êre evacuation, ®êre accidentemergency, ®ìood prevention, ®êre emergency, and con®êned restricted space escape and otheremergency exercises. Over the course of the repo®îing period, the Company spent a total of

7.3572 million yuan to eliminate safety hazards in production activities and to provide employees

with a safe working environment.

Xiamen Xiangyu organises itssubsidiaries to conduct safety drills

"Three-Horizonsand Three-Ve®îicals"Hierarchical TalentTraining System

Occupationalhealth and safety

The Company always adheres to the core value concept of "safety ®êrst, environment ®êrst,peopleoriented and complete equipment", and insists the safety management policy that is"peopleoriented, prevention ®êrst, risk identi®êcation and pre-control, creating a harmoniousand safe environment and taking the road of sustainable development". We will continuouslyimprove the safety management system, ensure the occupational health and safety ofemployees, and resolutely put an end to the occurrence of dangerous situations such asprioritising speed or economic bene®êts over safety.The Company strictly complies with relevant laws and regulations, formulates and publishes theOccupational Health, Safety and Environmental Management Manual, instructs subsidiariesinvolved in production to set up occupational health, safety and environmental managementsystems, improves the management of occupational health, safety and environmental,implements the safety production responsibility system for all employees, clari®êes the safetyresponsibilities of safety production managers at all levels, and e®ãectively prevents productionsafety accidents.The company promotes the construction of the safety culture and by customizing safetynotebooks, the annual safety priorities are "embedded in" the inside pages of the notebooks,reminding sta®ã to ®êrmly establish the concept of "safety ®êrst" at all times. Over the courseof the repo®îing period, the Company implemented good operating practices, and practicalcases submitted by its subsidiaries, such as the improvement of a gas cylinder storagecabinet, a mobile leveling scraper, a sliding conveyor belt, and an environmental protectiontransformation of a d®ñing tower, se®ïed as a model for other subsidiaries, e®ãectivelyimproving the overall safety production level. With the help of rich training content and diverseorganizational forms, the Company also set up a seminar for safety mainstays,and throughbrainstorming, it formed ideas and suggestions to improve management, and improved thesystematic and professional level of safety mainstays' management ability.

Coverage Rate of Annual Occupational Disease MedicalCheck-up for Employees

%Car®ñ Out Occupational Health and Safety Training

SessionsThe Number of Employees Pa®îicipating in OccupationalHealth and Safety Training

17,045Person-timesCoverage Rate of Occupational Health and Safety Training

%The Investment Amount of the Company in PurchasingOccupational Inju®ñ Insurance

10K, CNY

IndicatorsNumberUnit

Note: Data scope includes Xiamen Xiangyu and its subsidiaries operating in production, processing,warehousing, and logistics businesses.

Key Performance

EMPOWER EMPLOYEESXiamen Xiangyu has established a hierarchical, classi®êed, three-ve®îical and three-horizontal talent training system, covering threegroups of senior high school students, o®ãering various special training programs for employees in the new term, during the term ofo®æce, and during the transition period, and relying on Xiamen Xiangyu Business School to car®ñ out comprehensive managementtraining courses such as executive course, enterprise management course, and youth cadre course, as well as special training coursessuch as functional senior management course, executive delive®ñ skills enhancement course, human resources special course, riskcontrol special course, equipment management special course, etc., through classroom teaching, external reality study visits, internalmobile classrooms, Xiamen Xiangyu forums and other diversi®êed teaching modes, to continuously empower employee growth.

Hierarchy&Growth StageNew termDuring the term of o®æceTurnaround period

ExectutivesMomentum: Careerism/ Corporate Culture/ Strategic Thinking/ Overall Planning /Change and Innovation /Organization

Training for new executivesof the groupTraining for new executivesof joint-stock investmententerprises

Enterprise Management TrainingClass (Enterprise Management

Class)Functional&Business ExecutiveSpecial Ability Improvement ClassRotational training program forincumbent executives

Senior ManagementTraining Class (SeniorManagement Class)Middle leadershipInsight: enterprising/global vision/teambuilding/communicationand coordination/riskmanagement

New Middle LevelComprehensive CapabilityImprovement Program (MTP)

On duty middle level rotationtraining class

Stock Lecture HallBasic levelSkills improvement:

cultural integration/execution ability/professional competence/job holding ability

¡±Xiang Xinli "ManagementTraineeSchool Recruitment NewEmployee Happy Growth

Training CampSocial recruitment newemployee integration

training

Business Elite ClassOperations Manager ClassLogistics Manager ClassFinancial Manager ClassHuman ResourcesTraining ClassAdministrative TrainingClass

Youth Cadre Training Class

(Youth Cadre Class)Functional Executive Preparato®ñ

ClassBusiness Executive Preparato®ñ

ClassJob Quali®êcation SeriesTraining+Job Exam

Management Preparation

ClassStock Lecture Hall

7.3572

million yuan

Total investment in 2022 for theelimination of safety hazards inproduction activities

TypicalCase

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

Creating a Good Internal Training AtmosphereHighlight Practice

Employee Training and Development147,626person-timesTraining for Male Employees94,458person-timesTraining for Female Employees53,168person-timesAverage Training Time per Employee

38.4

hoursAverage Training Time per Male Employee

39.8

hoursAverage Training Time per Female Employee

35.4

hours

Indicators

Number

(As of the end of December 2022)

Unit

Administrative Managers Training ProgramLogistics Manager Training Program

Personal ValueRealization

Full Employment

Honor List

Employer Brand Conference Site

Zhaopin China Annual Best Employer Campus Recruitment Case Award(May 2022)Liepin Fujian's Extraordina®ñ Employer of the Year (November 2022)Zhaopin China's Top 100 Employers of the Year (December 2022)Internship College Students's favorite employer of the year (December2022)Excellent Internship Base of Xiamen University of Management(December 2022)

We optimize the management system and rules of internal trainers, organize internal trainer ce®îi®êcation activities, select and motivatemore internal trainers, and pass on organizational best practices to more employees.Emphasis should be placed on teaching by senior personnel, and senior personnel should be arranged for new employees to teachand study, so as to enhance the teaching ability of relevant personnel and promote the growth of young employees.

Meanwhile, in 2020, the Company developed and built an online learning platform to assist employees at all levels in continuously improvingtheir work ability. The platform o®ãers ®êve distinct courses, including corporate culture, leadership, team management, general literacy, and post-professional ability, and over 1,000 internal development and external introduction courses have been launched, fully meeting the independentlearning needs of employees in various positions. In oversea platform companies in Singapore, Indonesia, the Company regularly organizesemployees to pa®îicipate in training and study organized by local institutions to improve their professional skills, and encourages overseasemployees to actively pa®îicipate in the existing curriculum resources in Xiamen Xiangyu Business School and online learning platform, as well asstrives to provide diversi®êed training courses for employees worldwide.In order to promote the internationalization and digitalization and intelligence strategy, the Company organizes employees to car®ñ out suppo®îinginternational business and cultural training, and helps employees in the impo®î and expo®î business to improve their business ability and languageskills through training and examination of impo®î and expo®î series knowledge and operation practice, as well as Indonesian and Indonesiancultural training. In terms of digitalization and intelligence, the company so®îs out the goals and training priorities of digitalization and intelligencefor employees at all levels, and adds related courses to help employees keep up with the digital age and add more possibilities for their futurecareers.

Key Performance

Xiamen Xiangyu o®ãers employees a dual-channel promotion path of professionalism andmanagement, broadening their development path. The Company actively promotes cross-linerotation exercise of functions and businesses through job analysis and personnel evaluationprior to sta®æng, dynamically optimizes and con®êgures personnel, assists employees in ®êndingthe most matching positions, and clari®êes the future career planning direction. The Companyalso promotes cadre rejuvenation, and facilitates construction of young talents to a strategiclevel, and suppo®îs high potential talents to achieve their dreams.In order to implement the decisions and arrangements of the CPC Central Committeeand State Council's on stabilizing and ensuring employment, and to implement the workarrangements of the Xiamen Municipal Pa®îy Committee and Municipal Government, overthe course of the repo®îing period, the Company launched a new employer brand"Hea®îEncounter, Achievements in Action", actively assisted college graduates ®ênd jobs, inviting morethan 30 universities nationwide, totaling over 300 students and faculty members to gather inLudao. They felt the enthusiastic atmosphere of talent attraction and suppo®î in Xiamen, andestablished a close connection between the students, employees, and the growth, success,and achievements of the Company. This initiative aims to provide college graduates withsmooth channels for growth and a platform for their development.

The Company also pays special attention to the employment of disabled people, veteransand other special groups, and actively creates relevant positions to facilitate the employmentof disabled individuals. In addition, veterans are given priority consideration for speci®êc jobopenings.

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

Highlighted PracticesOver the course of the repo®îing period, through the feedback from the workers'congress, the children's care class for summer vacation was launched for the ®êrsttime to address the concerns of employees regarding childcare responsibilitiesduring the summer vacation period.

Face-to-face Communication:

the Company's annual business meeting, leaders' symposiums at all levels,

monthly meetings, performance feedback sessions, daily informal talks, and

team-building activities.

Written Communication:

daily reports, weekly reports and special reports related to daily operations.

Online Communication:

communicate and feedback through company's OA system and "Yuxin".

times

"Five Ones" Projects

Employees donate one day'ssala®ñ to the Spring Rain

Fund eve®ñ year.

Car owners stop driving for

one day eve®ñ year.

The company donates toone social welfare project

annually.

Employees are encouraged tovoluntarily donate blood oncea year, based on their individualeligibility and conditions.

Employees should spare atleast one day each year topa®îicipate in volunteer se®ïice

activities.

Internal Communication Feedback MechanismHighlight Practice

EmployeeCommunication

The Company continues to conduct satisfaction su®ïeys and to gather feedback fromemployees regarding their perceptions of company's culture, policies, management, and teamdynamics over a ce®îain period of time. The Company analyzes and interprets the su®ïey data,promptly identi®êes problems related to the system, processes, personnel management, andother areas. It then collaborates with relevant depa®îments to develop improvement plans,monitor implementation, and increase employee satisfaction.

Fu®îhermore, the Company has established a workers' congress system, 40 sta®ã representativeswere elected in accordance with theTrade Union Lawand other documents, and holdthe workers' congress eve®ñ year to discuss issues concerning employees' interests and topromote the normalization, and standardization of democratic management. The Companyalso adheres to the practice of holding symposiums such as "criticism and selfcriticism" and"visiting grassroots and listening to voices" eve®ñ year. These symposiums aim to gatherfeedback, suggestions, and evaluations directly from employees regarding their own work,communication and cooperation, and timely optimization of work processes and mechanismsto enhance the intrinsic motivation for innovation.

The Company has established a smooth and timely communication and feedbackmechanism to proactively gather employees' opinions. The main forms of communicationand feedback are as follows:

Key Performance

The Number of Times ofWorkers' Congresses or OtherDemocratic CommunicationMeetings.

CORPORATE SOCIAL RESPONSIBILITY (CSR)Xiamen Xiangyu adopts the "Five Ones" Projects as its carrier, actively practices corporate social responsibility, enthusiasticallypa®îicipates in public welfare unde®îakings, promotes rural revitalization, and strives to give back to society by sharing its businessachievements in order to be a responsible enterprise. Over the course of the repo®îing period, the Company organized employees topa®îicipate in various public welfare activities such as the establishment of the civilized cityin Ludao. Additionally, the Company provideda rent reduction of 24.26 million yuan to tenants.

Activities in Children's Care Class for Summer Vacation

Message fromthe Chairman

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixGovernance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

Conducted discussions and exchanges withHoupu Community Neighborhood Committee,and carried out visits to senior pa®îy memberswho have di®æculties in the Spring Festival.

Promote rural revitalization and demonstrate responsibility

Car®ñing Out Compassionate Pairing VisitsSending Children's Day Gifts to Impoverished

Children in Jimsar County

Ove®ïiew of Community Activities in 2022

July

November

Created the pa®îy member activity room inLongteng Garden of Houpu Community.Conducted discussions and exchanges withHoupu Community Neighborhood Committee,and carried out condolence activities for oldpa®îy member who has di®æculties in the SpringFestival.

May

September

December

Organized a volunta®ñ blood donation event onMother's Day with the theme "Chinese Blood,Cross-Strait A®ãection.".Pa®îicipated in the joint meeting of the Pa®îyCommittee of Houpu Community and thesymposium of the joint construction unit.Conducted volunteer activities of civilization andclean home initiatives.Jointly carried out the "Little Captain" Children'sDay event.Organized the volunta®ñ se®ïice activities of"Clean Home"Conducted the themed pa®îy day event"Celebrating the 20th National Congress,Warming the Double Ninth Festival".

Organized the volunteer activities of " Embracethe Beauty, Care with Love"

Pairingassistancewith GuoxiVillage

Over the course of the repo®îing period, in accordance with the uni®êed arrangements fromhigher authorities, the Company conducted in-depth visits and research in Guoxi Village,Xiangping Street, Tong'an District. The Company engaged in communication related to ruralrevitalization, discussed the assistance work plan, and actively played a leading role in thedemonstration of state-owned enterprises. It is expected to help Guoxi Village achieve itsgoal of an annual collective economic income of 500,000 yuan in 2024.Since 2018, the Company has been combining industrial assistance with pove®îy alleviationthrough consumption, annually organizing the purchase of products from East-Westregional cooperation to promote local industrial development and strengthen the collectiveeconomy. Over the course of the repo®îing period, the Company and its subsidiariespurchased pove®îy alleviation products wo®îh over 1.04 million yuan.Since 2021, the Company has signed an agreement on pa®îy building and co-constructionwith Quanzijie Town and Xindi Township in Jimsar County, Xinjiang. The collaborationfocuses on assisting the growth of young people and jointly promoting rural revitalization,among other aspects.

Consumptionassistancethrough East-West regionalcooperation

The Company is primarily concerned with agricultural development. Since its ent®ñ intoHeilongjiang, China's main grain producing area, in 2013, it has established an integratedse®ïice system for the entire grain indust®ñ chain, which integrates seed fe®îilizer se®ïice,agricultural planting, grain storage, logistics and transpo®îation, raw grain supply, grainprocessing, and agricultural ®ênance, and has built the ¡°Xiamen Xiangyu's Indust®ñ-levelAgriculture Internet Platform¡± covering the entire chain of grain cultivation, storage, andcirculation through the use of digital intelligence technology. The platform contributes tostabilizing the foundation of agriculture with the strength of Xiamen Xiangyu.Building a solid"ballast" for food

safety

In terms of community contribution, the Company worked with the Houpu community to actively pa®îicipate in the community's political,public welfare, and mass work, as well as to car®ñ out practical activities such as volunteer se®ïice, caring for the next generation and theelderly, and caring for the community to the greatest extent possible. Simultaneously, the Company encourages pa®îy members to activelypa®îicipate in volunteer activities such as clean homes and civilized supe®ïision, as well as community governance, to contribute their e®ão®îs tothe construction and improvement of the community.The Company also works with all sectors of society to promote the construction of overseas communities. Utilizing local festivals such asThanksgiving, we actively engage in community chamber of commerce activities in the United States, strengthen the maintenance of externalrelations. We also cooperate with the Chinese Chamber of Commerce in Vietnam to visit children's protection centers and nursing homestogether, and donate essential goods and food to protected children and elderly people in need to promote global public welfare actions.

Jointly carried out pa®îy day event on the themeof "I know the three rates of safety"

Investment for Advancing RuralRejuvenation

105.94

10K, CNY

Indicators

Number(As of the end ofDecember 2022)

unitKey performance

Janua®ñ

In order to help solve the prominent issues such as high cost, lowe®æciency and high environmental pollution existing in the traditionallogistics model, Xiamen Xiangyu is exploring the development pathof green logistics. Embracing eco-friendly practices throughout ouroperations, we are cementing the supply chain foundation for the greenindust®ñ and lending critical suppo®î to the achievement of the "carbondioxide peaking and carbon neutrality" goals.

ENVIRONMENTAL CHAPTERDiscovering the Splendor of Natural Environment

and Leading the Way for Green Innovation

49

50

Xiamen Xiangyu Co.,Ltd.Xiamen Xiangyu 2022 Environmental, Social and Governance Repo®î

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter:

Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixMessage fromthe Chairman

Governance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the NationGREEN LOGISTICS

No®îh to South Coal Diversionand West to East CoalDiversion

Relying on the layout of Xiangdao logistics nodes in thecentral and western regions, the Company sends coalfrom Shanxi, Shaanxi and western Inner Mongolia toYunnan, Guizhou, Sichuan, Shandong, Hunan, Jiangxiand other regions by railway, and builds transpo®îcorridors for transpo®îing coal from no®îhern China tothe South and from western China to the East.

Railway transportation consumes 15% lessenergy and generates 8% less pollution than roadtransportation. The Company transports coal byusing the form of "shifting from road to railway ".Prior to the train's departure, a dust-suppressingsubstance is administered onto the surface of thecoal. This creates a protective layer which effectivelymitigates the release of dust, thereby curbingenvironmental pollution.

Line nameChannel constructionMeasures to reduce pollution and consumption

Line nameChannel constructionMeasures to reduce pollution and consumption

Relying on multi-model transpo®î, to build a "green, low-carbon and e®æcient" logistics route.

Trans-provincial Corridor for Aluminum Products

Xiamen Xiangyu is committed to building a multi-model transpo®î system rooted in the logistics indust®ñ. In response to the nationalinitiative of "Switching from Road to Rail Transpo®î", "Consolidating Loose Cargo into Containers", "Po®î-to-Po®î Cooperation" thecompany has integrated its logistics and digital systems to create a unique "logistics leadership, sma®î empowerment, and high-levelcollaboration" model, promoting the development of green logistics. It also leverages the distinctive advantages of open-top containertranspo®îation to achieve "Switching from Road to Rail Transpo®î" for various products, including cement clinker and kaolin, ful®êlling itsmission to provide e®æcient and sustainable logistics solutions.

The company achieved a breakthrough in the transpo®îation structure of " Intermodal transpo®îation combining railway and waterway, and sho®îroad transpo®î" in the development of multi-model transpo®î logistics system, and built multiple green, low-carbon, and e®æcient multimodallogistics lines of bulk commodities, such as "No®îh to South Grain Diversion", "No®îh to South Coal Diversion", and "Trans-provincial Corridor forAluminum Products", which can signi®êcantly reduce the energy consumption and pollutant emissions in the logistics process.

The Company has been actively involved in the creation oftwo pivotal indust®ñ standards: theEnterprise Green LogisticsAssessment Indicesand theMethodology for Greenhouse GasEmission Accounting in Logistics Companies. These standardsare led by the Green Logistics division of the China Federationof Logistics and Purchasing. This involvement se®ïes to guide thesector in shaping a sustainable, low-carbon growth trajecto®ñin accordance with these standards, thereby establishing thestrategic direction for the environmentally-friendly progressionof the logistics indust®ñ.

Key Performance

Over the course of the repo®îing period, the Company's responsible practice case of "multi-model transpo®î se®ïice for bulk commodities,realizing digital intelligence empowerment and suppo®îing the goal of 'carbon dioxide peaking and carbon neutrality' " was selectedinto the 2022 GoldenBee Responsibility Competitiveness Case Collection.

Key PerformanceOver the course of the repo®îing period, the Company achieved a "Switching from Road to Rail Transpo®î" transpo®îation volume ofapproximately 8 million tons, reducing automobile transpo®îation by 267,000 times, which can reduce carbon emissions by awhopping 1.47 million tons annually.Through the promotion and development of China-Europe freight trains, the cumulative mileage has almost reached4 millionkilometers, resulting in a reduction of 27,000 tons of carbon dioxide emissions compared to cross-border cargo trucks transpo®îingbulk goods. This signi®êes a signi®êcant contribution towards sustainable transpo®îation and a reduction in the carbon footprint.We have comprehensively integrated electronic signature technology, resulting in a fully digitized and paper-free process for theinbound and outbound warehousing of goods. This endeavor has led to a substantial decrease in carbon emissions, estimated to bearound6,028.8 tons annually.

No®îh-south and west-east coal transit corridors No®îh to South Grain Diversion

No®îh to South Grain Diversion

We have taken proactive measures to strategicallyposition our logistics network, e®ãectively linkingcritical nodes such as the no®îhern productioncenters, po®î clusters, and southern sales regionsto establish a seamless and e®æcient transpo®îationchannel for No®îh to South Grain Diversion. Ourapproach includes a unique blend of multi-modeltranspo®î options, leveraging "Road Transpo®î, RailTranspo®î, Water Transpo®î, and Warehousing"facilities, resulting in a highly specialized andtailored logistics system.

Waterway transpo®îation uses less energy and generatsfewer pollutants than railway and highway transpo®îation.By adopting a transpo®îation model with rail and water asthe prima®ñ modes, suppo®îed by road transpo®î, we havesigni®êcantly reduced the propo®îion of road transpo®î distanceto less than 1/10 of the entire transpo®îation process, therebylowering transpo®îation costs and energy consumption, whichhas resulted in cost reduction and increased e®æciency in graintranspo®îation.

Trans-provincial Corridor forAluminum Products

Relying on our own aluminum indust®ñchain's operational volume advantage, wehave successfully instituted signi®êcant transitcorridors for alumina and electrolytic aluminum,including but not limited to, the 'Xinjiang-Henan'and 'Shandong-Inner Mongolia' routes.

Leveraging the rail node bene®êts of Xiangdao Logistics,the Company completed transpo®î structure adjustment of"shifting from road to railway" and "consolidating scatteredcargo into consolidated shipments", supplanted largescaletrucking with rail container shipments, achieved quality,e®æciency and energy savings in the transpo®î of aluminiumproducts.

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter:

Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixMessage fromthe Chairman

Governance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the NationENVIRONMENTAL-FRIENDLY WORKPLACE

Company Headqua®îers O®æce Buildingwas awarded the three-star rating (pre-evaluation) of China'shighest level of green building evaluation and the LEED gold pre-ce®îi®êcation issued by the US Green Building Council.

Solar energy heating now contributes to

42.3% of our hot water supply.

Our monthly average energy usage consistently undercuts the

citywide average in Xiamen by 7.6%Headqua®îers Power Saving Measures

Headqua®îers Water Saving Measures

Headqua®îers Waste Management Measures

Xiamen Xiangyu focuses on incorporating the concept of green and low carbon into daily o®æce work, and promotes employees'awareness of green and low carbon through resource conse®ïation management and recycling, as well as organizing green and low-carbon activities to reduce the impact on the environment in the o®æce work and contribute to the development of an ecological,civilized, and beautiful society.

Intelligent building equipment automatic control system is adopted to set the lights,night cu®îain wall, electronic screen, pool fountain system, air conditioner and fresh airsystem in public areas (divided into working mode, rest mode and holiday mode) forenergy saving control;Promote "turn o®ã the lights when people leave" to all o®æce sta®ã, and at the same time,and through the security regular inspection to make up for the lights o®ã.

Equipped with rainwater recove®ñ system, the recovered rainwater will be used as supplementa®ñ water for landscape pool and Greene®ñwatering;Purify the water with water purifying agent, so as to prolong the water exchange period of the conventional water storage tank by at least halfa month and reduce the water consumption caused by water exchange;Fully installed water-saving toilets, faucets and other water appliances, which can save water by 50% compared with traditional equipment.

Set trash cans in all places of the o®æce building, and the cleaning sta®ã will collect and so®î the garbage at noon and afternoon eve®ñ day, thenremove the non-recyclable garbage to the designated location;Set up a special area to store decoration or large and kitchen garbage, and not mixed with domestic garbage;The annual garbage so®îing capacity is 137.64 tons, including 6.06 tons of kitchen waste and 16.19 tons of recyclable waste.

53

Xiamen Xiangyu Co.,Ltd.Xiamen Xiangyu 2022 Environmental, Social and Governance Repo®î

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter:

Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixMessage fromthe Chairman

Governance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter:

Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixMessage fromthe Chairman

Governance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

SERVICING GREEN INDUSTRYCUSTOMERS

Ensuring Security and Stability of the New Energy Supply Chain

Over the course of the repo®îing period, the Company has achieved

Comprehensive se®ïice scheme of new energy supply chainXiangyu Solutions

Procurement andDistribution

Foreign Mining Sources inAfrica, Indonesia, SouthAmerica, Australia, etc.

Nickel, Diamond, andSteel Smelting Plants

Batte®ñ MaterialsManufacturing Plants

Batte®ñManufacturing Plants

New Energy Vehicle(NEV) ManufacturingPlantsComprehensive Financial

SolutionsEnd-to-End Logistics (Sea Freight, Impo®îCustoms Clearance, Bonded Warehousing)

Outsourced Semi-Finished

Product Processing

UpstreamMidstreamDownstream

Green Travel

Environmental Volunta®ñ Activities

Through multi-model transpo®î and other logistics methods, the Company focuses on resource-rich areas abroad such as Australia, Africa andSouth America to introduce raw materials such as lithium, cobalt and nickel to strengthen the supply chain of domestic new energy enterprises.Domestically, the company focuses on resource bases such as Qinghai and Sichuan, and has formed a full chain processing channel from rawore, semi-®ênished products, and ®ênished products to improve logistics turnover e®æciency and promote the stable development of the newenergy indust®ñ. Simultaneously, with the assistance of mature overseas channels, the Company assists domestic electric vehicle enterprises inexploring the electric vehicle market in Europe, South America and other places, allowing its excellent products to "go abroad."

"One Chain and Two Channels" comprehensive service schemeto help photovoltaic green power go abroad

"There must be professional people to do professional things. Xiamen Xiangyu not only has a mature modelin the supply chain, but also has a first-class team to provide comprehensive solutions, which is fast andefficient, and truly achieves one-stop service, so that the company can rest assured."

¡ª¡ª Lily, project manager of Shenggaofa

Key performanceProvide free shuttle bus for employees, encourage employees to travel by public transpo®î, and reduce carbon emissions caused by commuting.The Company annually conducts a "one-day parking" event tailored towards employees with private vehicles. Over the course of the repo®îingperiod, this initiative drew pa®îicipation from 548 company employees and successfully heightened their environmental cognizance by integratinglow-carbon principles into their routine.

The supply of lithium carbonate ranks among the top ®êve in ChinaLithium salt business volume ranks third in the count®ñ.Cobalt impo®îs account for more than 10% of the count®ñ.

Eve®ñ year, the Company organizes employees to pa®îicipate involunta®ñ tree planting. Over the course of the repo®îing period,employees visited Dongping mountain, Xiamen's "green lung", topa®îicipate in volunteer tree planting activities, and thoroughlypracticed the development concept of "Lucid waters and lushmountains are invaluable assets" through practical actions.

The Company regularly organizes employees to pa®îicipate inenvironmental cleaning activities, including park and beachgarbage cleaning, so as to build a "green, healthy, environmentallyfriendly and civilized" urban environment with practical actions.

China is continuously implementing the " carbon dioxide peaking and carbon neutrality" goal to accelerate the transition to green andlow-carbon development. Xiamen Xiangyu actively responds to the national strategy, continuously optimizes the product po®îfolio, andcontinues to make e®ão®îs in the two new energy tracks of lithium batte®ñ and photovoltaic, assisting the count®ñ's green developmentwhile actively integrating into the global carbon neutral wave.

Shenggaofa is a Chinese new energy company that specializes in the production of photovoltaic modules. It requires professional supplychain se®ïice operators to assist it in shipping photovoltaic products overseas. Over the course of the repo®îing period, Shenggaofa wasthreatened with closure due to a sudden price increase in photovoltaic raw materials such as silicon wafers and batteries, which were insho®î supply. Xiamen Xiangyu's one-stop platform truly provides customers with comprehensive se®ïices across the entire supply chain,not only that we contacted Vietnamese Chinese manufacturers, integrated logistics resources, and designed logistics solutions to assistcustomers in solving the sho®îage of photovoltaic raw materials within one week, but also provided the customer with comprehensivese®ïice solutions with overseas resources and assisted it in winning orders from overseas customers in Europe, which was greatlyappreciated by the project manager of Shenggaofa.

Volunteering for Civilized Guidance

Dongping Mountain Tree Planting Activity

TypicalCase

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter:

Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixMessage fromthe Chairman

Governance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the NationSuppo®î lowcarbonization ofpower system

Rooftop Photovoltaic for Enterprise Development on the "Green Engine"

Features of GreenScheme

Technical Capability

The Company has been granted 37 patents, and the invention patent "A kind of tailings sewage rapid sedimentationconcentration tank" won the gold medal in the "First China Circular Economy Patent Award".National Minist®ñ of Indust®ñ and Information Technology Industrial Products Ecological (Green) Design PilotEnterprise (the second batch).Xiamen Innovative Pilot Enterprises.The Technology of "Land-saving, High-e®æciency, Low-cost and Rapid Tailings Wastewater Recycling System andApplication" Won the Second Prize of Science and Technology of China Circular Economy Association.The Company Pa®îicipated in and Implement the Project of Xiamen Science and Technology Plan "Industrialization ofZero Emission Production Technology of Iron Concentrate".The Company pa®îicipated in and carried out the 12

thFive-Year Plan 863 project "Magnetized Roasting Iron Tailingsas Resources for Cement Concrete" which was deemed "internationally leading" by evaluation expe®îs.

Wide Application

The Company is actively expanding the photovoltaic power station market, and has nowestablished one-stop comprehensive se®ïice capabilities such as photovoltaic projectdevelopment, investment, equipment supply and operation, and full-cycle ®ênancial leasingse®ïices for photovoltaic power stations. Currently, the Company's photovoltaic business hascovered many domestic provinces such as Fujian, Zhejiang, Jiangsu and Guangxi, as well ashigh-growth markets including Europe and Asia.

The agricultural sector of the Company pe®íormed low-carbon transformation on the coal-®êred d®ñing tower, replaced coal with biomasspa®îicles to heat the d®ñing tower, and installed pulse bag dust removal facilities to ensure that the exhaust gas met the standard, realizing thepollution reduction and carbon reduction synergy.

In October 2022, the Company's subsidia®ñ Xiangyu New Energy and GD Power Development Fujian New Energy jointly developed aplant roof distributed photovoltaic power plant project o®æcially sta®îed construction. The photovoltaic power station project uses 40,000square meters of roof and local lighting to build a distributed photovoltaic power plant with an installed capacity of 3.7 MW. After theproject is connected to the grid, it is estimated that the system will generate an average of 3.76 million kWh of electricity per year andreduce carbon emissions by 3,700 tons. The operation of the project can help customers signi®êcantly reduce the solar radiation receivedby the roof, e®ãectively reduce the load of air conditioning system and building energy consumption, and also provide the customer withelectricity security and reduce the electricity cost of operation.

APPLICATION OF GREEN TECHNOLOGYXiamen Xiangyu actively seized the oppo®îunity of economic green transformation, continued to car®ñ out green technology researchand development, embraced the development trend of external green technology, and applied the existing mature low-carbontechnology to the company's production and operation, thus continuously reducing the environmental impact.Xiamen Xiangyu Huanzi Mining Science and Technology Co., Ltd. is dedicated to making mineral processing more environmentallyfriendly. In response to the problems of environmental pollution and waste of resources in the development and utilisation of traditionaliron ore, we continue to invest in research and development in the ®êelds of mineral processing wastewater and waste residue, subve®îthe process and technical route of traditional mineral processing indust®ñ, and put forward a four-in-one overall solution of "circulareconomy, comprehensive utilization, clean production,energy e®æcient."

The versatile manufacturing line is capable of accommodating the processing and production ofvarious iron ore types, encompassing magnetite, hematite, limonite, among others.

Indust®ñ Pioneering

The tailings wastewater rapid treatment system can achieve "zero" wastewater discharge in theproduction process, which replaces the traditional tailings pond, occupies a small area, requires lessinvestment, and achieves 100% wastewater recycling, which is the ®êrst in the world.Safe and Reliable

When compared to traditional treatment methods of mineral processing enterprises, the mineralprocessing system and method for recycling iron-bearing tailings can e®ãectively solve the reuseproblem of refracto®ñ iron ore, associated iron ore, and tailings resources, as well as reduce thepotential safety hazards and environmental hazards brought by tailing ponds.Achieving Net©\zero Emissions Target

The comprehensive utilization technology of roasted tailings realizes that seconda®ñ tailingsbecome raw materials for cement and concrete, and the discharge of waste residue pollutants iszero, completing the industrial chain's closed-loop work. The concrete can meet the strength graderequirements of concrete above C40 by using roasted iron tailings instead of cementitious materialsin various propo®îions.

Key Performance

Over the course of the repo®îing period, the number of biomass d®ñing towers in theCompany was21, accounting for 28%, and the average annual coal consumptionwas reduced by13,802 tons.

TypicalCase

Xiangyu New Energy Joins Hands with GD Power Development to Develop PV Power Plant Project

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixMessage fromthe Chairman

Governance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

ROADMAP AHEAD

In 2023, Xiamen Xiangyu will persist in driving the execution of its "6th Five-Year" Plan, with steadfast commitment to thedevelopmental direction of "Platformization, Internationalization, and Digitalization and Intelligence" and rely on "organizationaloptimization and capability enhancement" as their main suppo®î. The company will focus on their core business of providingintegrated supply chain se®ïices for bulk commodities, while constantly exploring customer, market and model value. With thehelp of their accumulated experience and data, we will build a comprehensive digital supply chain se®ïice platform to se®ïeas a "sma®î brain" for industrial customer supply chain se®ïices, providing e®æcient and optimal solutions through a one-stopcomprehensive se®ïice.To ensure the legal and stable operation as well as sustainable development of our company, Xiamen Xiangyu will continue todrive the construction of a systematic, standardized, and transparent governance system. We uphold the business philosophyof "Risk First, Pro®êt Second, and Se®ïice Scale Third", and are continuously improving our risk management processes tominimize the potential impact of operational risks on the company.In the upcoming year, Xiamen Xiangyu will persist in accelerating its digital intelligence transformation, under the guidance ofestablishing a "Sma®î Xiangyu", to stimulate innovation in business model, enhance the e®æcacy of internal management, andinstill new value into se®ïices for the bulk supply chain. We remain committed to the continual optimization of our "YuLianTong"digital supply chain se®ïice platform, industrial-level internet platform for agriculture, online freight and water transpo®îplatforms, among others. Moreover, we are excited to provide new perspectives, novel paradigms, and dynamic solutions forthe greater Chinese bulk supply chain community with our digital transformation expe®îise and practical cases, to solve today'smost pressing business challenges.In the upcoming year, Xiamen Xiangyu will persist in navigating towards green, low-carbon development, unyieldinglychampioning green growth, contributing to the establishment of green supply chains, and playing its pa®î in reaching the

"carbon dioxide peaking and carbon neutrality" goal. We will maximize the bene®êts of our integrated multi-model transpo®îlogistics system to enhance e®æciency and diminish resource consumption throughout the industrial supply chain. Fu®îhermore,we are committed to extensively expanding the comprehensive industrial chain of renewable energy, catalyzing an optimizedenergy framework, and relentlessly striving for the conse®ïation of lucid waters and lush mountains. Fully leveraging ourmultimodal transpo®îation and logistics strengths, we will drive the optimization of energy e®æciency up and down the chain,while actively expanding our new energy full-indust®ñ value chains, promoting energy structure upgrades, and continuing ourcommitment to protecting our natural environment.In the upcoming year, Xiamen Xiangyu remains committed to ful®êlling our social responsibilities and contributing to thebetterment of society. We will actively engage in social development e®ão®îs, including rural revitalization, pove®îy alleviation,and value creation. Upholding a philosophy centered on People Oriented, we are committed to continually improving ourwelfare system, creating oppo®îunities for professional growth, expanding career advancement paths, and fostering a cohesivecommunity of shared interests and fate.Maintaining steadfast dedication and guided by a clear vision, we move forward into the future. In 2023, Xiamen Xiangyuwill strive to fu®îher improve operational and management capabilities, actively listen and respond to the expectations anddemands of stakeholders, se®ïe the real economy, ful®êll social responsibilities, and generate greater value. and continuallymarch towards our aspiration of "becoming a world-class supply chain se®ïice enterprise" with unwavering determination andsteadfast action.

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixMessage fromthe Chairman

Governance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

Xiamen Xiangyu Co.,Ltd.Xiamen Xiangyu 2022 Environmental, Social and Governance Repo®î

APPENDIX

About the Repo®î

List of Policies

Ove®ïiewThis repo®î is the inauguralEnvironmental, Social and Governance Repo®î("this Repo®î") released by Xiamen Xiangyu Co., Ltd. The aimof this repo®î is to provide a comprehensive and detailed ove®ïiew of the Company's principles, beliefs, management measures, andpe®íormance achievements in sustainable development.Scope of Repo®îing

This Repo®î covers Xiamen Xiangyu Co., Ltd. and all its subsidiaries. The ®ênancial data presented in this repo®î is in accordance with theannual consolidated ®ênancial statements of Xiamen Xiangyu Co., Ltd. This is an annual repo®î covering the period from 1 Janua®ñ to 31December 2022("Repoting Period"), some pa®îs of which are outside the above scope references to previous years.Preparation BasisThis repo®î follows the guidelines set by the Shanghai Stock Exchange regarding social responsibility repo®î preparation while alsoreferencing the Global Sustainability Standards Board's (GSSB) GRI Sustainability Repo®îing Standards (GRI Standards). In addition, therepo®î draws from suggestions o®ãered in the ISO 26000:2010 Guidance on Social Responsibility issued by the Technical ManagementBoard groups (ISO/TMBG) managed under the International Organization for Standardization (ISO).

Notes to DataThe data, management mechanisms and cases contained in this Repo®î are derived from the original records or ®ênancial repo®îs of theCompany's actual operations. All ®ênancial data presented in this Repo®î is in Chines Yuan(CNY). In case of any discrepancies between the®ênancial data presented in this Repo®î and that presented in the Company's annual consolidated ®ênancial statements, the latter shall takeprecedence.Appellation DescriptionFor the sake of readability, the repo®î refers to " Xiamen Xiangyu Co.,Ltd." as "Xiamen Xiangyu", "the Company", "this Company" or "we" inthis Repo®î."Xiamen Xiangyu Group Corporation Limited" is also referred to as " Xiangyu Group", while "Xiangdao Logistics Group Co., Ltd." is referredto as "Xiangdao Logistics".

Reliability StatementXiamen Xiangyu promises that nothing in this Repo®î contain any false records, misleading statements or material omissions, and theBoard of Directors of the Company assumes individual and joint responsibility for the truthfulness, accuracy and completeness of theinformation herein.Repo®î Access

This Repo®î is published in both print and electronic format. The print version is available in the Company's Securities Depa®îment.The electronic format is available on the Company's o®æcial website ( http://www.xiangyu.cn/ index.aspx).

Contact UsXiamen Xiangyu encourages all stakeholders to make advice or comments on the Company's e®ão®îs on sustainability and socialresponsibilities. If there are any relevant matters, please contact [e-mail] for fu®îher assistance.

Governance Aspect

?Information Disclosure A®ãairs Policy?Xiamen Xiangyu Investor Relations Management Policy?Xiamen Xiangyu Risk Management Policy?Xiamen Xiangyu Compliance and Governance Policy?Xiamen Xiangyu Information Security Management Policy

?Xiamen Xiangyu Bulk Commodity Trading Risk Management Policy

Se®ïice Aspect

?Xiamen Xiangyu Management of Digital Operations Se®ïiceRegulation?Xiamen Xiangyu Food Operation and Management Policy?Xiamen Xiangyu Anti-unfair Competition Regulation?Xiamen Xiangyu Management of Invento®ñ Regulation

Social Aspect

?Xiamen Xiangyu Occupational Ethical Risks Management Policy?Xiamen Xiangyu Organizational Structure Management Policy?Xiamen Xiangyu Position Management Policy?Xiamen Xiangyu Management of Overseas (Border) Travel forEmployees Regulation?Xiamen Xiangyu Management of Retiree Reemployment Regulation

?Xiamen Xiangyu Management of Overseas Sta®ã DeploymentRegulation (Trial)?Xiamen Xiangyu Management of Interns Regulation

?Xiamen Xiangyu Management of Expatriates Regulation?Xiamen Xiangyu Compensation Management Policy?Xiamen Xiangyu Attendance and Leave Management Measures?Xiamen Xiangyu Pe®íormance Assessment Management Policy?Xiamen Xiangyu Expe®î Pool Management Measures

?Xiamen Xiangyu Depa®îmental Structures and Functions

?Xiamen Xiangyu Recruitment Management Policy

?Xiamen Xiangyu Management of Employee Training Regulation?Xiamen Xiangyu Management of Internal Trainer ManagementRegulation?Xiamen Xiangyu Employment Contract Management Policy?Xiamen Xiangyu Management of Job Rotation Regulation

?Xiamen Xiangyu Internal Referral Management Policy (Trial)?Xiamen Xiangyu Responsibilities of Functional Company?Xiamen Xiangyu Management Rules of Business Travel

ESG Metrics Smma®ñPolicies in Place

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixMessage fromthe Chairman

Governance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

Xiamen Xiangyu Co.,Ltd.Xiamen Xiangyu 2022 Environmental, Social and Governance Repo®î

TopicsPolicies in place

KPIs for Corporate Governance

Board of Directors meetings

timesBoard of Supe®ïisors meetings

timesGeneral Meeting of Shareholders

timesAudit Committee meetings

timesCompensation and Assessment Committee meetings

timesInvestment Development (Strategy) Committee meetings

timesRelease of periodic repo®îs to the public

copiesRelease of interim announcements

copiesReplying to SSE E-interactive online platform

questionsAnswering investors' inquiries300+callsHandling IR mailbox mail100+emailsTraining related to organizational compliance of the Company

sessionsBoard Directors, Supe®ïisors, Senior Management to pa®îicipate incompliance training.

sessionsNumber of compliance-related complaints received by the Company

casesThe number of compliance-related complaints handled by the Company

cases

Indicators

Number(as of the end of December

2022)

Unit

EnvironmentalAspect

?Environmental Protection Policy

?Environmental Protection Management Policy

?Hazardous Waste Management Policy?Cleanner Production Management Policy

?Water Conse®ïation Management Policy?Environmental Emergency Operation Response Plan

Number of Employees in Xiamen Xiangyu Headqua®îers

personsNumber of Employees in the Main Subsidiaries7,746personsTotal Number of Employees8,191persons

By GenderNumber of Male Employees5,357personsNumber of Female Employees2,834persons

KPIs for Employment and Social Topics

Key Pe®íormance Indicators

Business ethics training

sessionsThe number of policy related to risk management, bulk commodity tradingand compliance being reviewed or updated

itemsKPIs for Digital Transformation

Investment in digitalization construction21,20010K, CNYThe number of training activities conducted to empower digitalizationconstruction

sessionsThe number of employees pa®îicipating in training related to digitalizationconstruction

person-timesThe number of management-level employees pa®îicipating in trainingrelated to digitalization construction

person-timesThe number of dedicated personnel at the headqua®îers responsible forcompany's information technology construction

personsNumber of talents supplied to each depa®îment (ITBP)

persons

Indicators

Number(as of the end of December

2022)

Unit

Indicators

Number(as of the end of December

2022)

Unit

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixMessage fromthe Chairman

Governance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

Xiamen Xiangyu Co.,Ltd.Xiamen Xiangyu 2022 Environmental, Social and Governance Repo®îNote*: Data scope includes Xiamen Xiangyu and its subsidiaries operating in production, processing, warehousing, and logistics businesses

Indicators2022 DataUnit

By Age30 and Under2,813personsBetween the Ages of 30 to 403,013persons40 and Above2,365persons

By Academic Quali®êcations

Master¡¯s Degree

personsMaster¡¯s Degree

personsBachelor¡¯s Degree3,585personsCollege Degree1,553personsVocational High School and Technical Seconda®ñ School

personsHigh School and Below1,810personsBy Region

Number of Employees working in Mainland China8,120personsNumber of Employees Working in Hong Kong, Macao,Taiwan and Overseas Regions

personsEmployee Training and Development147,626person-timesTraining for Male Employees94,458person-timesTraining for Female Employees53,168person-timesAverage Training Time per Employee

38.4

hoursAverage Training Time per Male Employee

39.8

hoursAverage Training Time per Female Employee

35.4

hoursNumber of Conducting Employee Congress or OtherDemocratic Communication Meetings.

sessionsCoverage Rate of Annual Occupational Disease MedicalCheck-up for Employees

%Car®ñ Out Occupational Health and Safety Training

sessionsThe Number of Employees Pa®îicipating in OccupationalHealth and Safety Training

17,045person-timesCoverage Rate of Occupational Health and Safety Training

%The Investment Amount of the Company in PurchasingOccupational Inju®ñ Insurance

10K, CNYThe Amount of Subsidies Provided by the Labor Union forEmployees in Need

24.4

10K, CNYThe Amount of Maternity and Marriage CongratulationsAllowances Provided for Female Employees

11.44

10K, CNYInvestment in Suppo®îing Rural Revitalization.

105.94

10K, CNY

(Purchased) electricity use *74,968,102.00KwhNatural gas use437,800.00m?Wastewater discharge volume50,166m?Ammonia and nitrogen emissions

0.003

tonsChemical oxygen demand (COD) emissions

5.592

tonsNOx emissions

0.129

tonsPM emissions

2.2045

tonsVOCs emissions

17.6

tonsHazardous waste emissions

6.47963

tonsLaborato®ñ waste liquid

0.6086

tonsReagent bottle

0.46987

tonsWaste paint bucket

0.15871

tonsWaste oil drum

0.12445

tonsLead-acid batte®ñ

2.74

tonsMineral oil

2.378

tonsNon-hazardous waste recycled

barrelsNon-hazardous waste volume

barrelsNumber of dedicated environmental personnels training

sessionsEnvironmental protection training conducted within thecompany

sessionsPropo®îion of employees covered by environmental-related training

%

Indicators2022 DataUnit

KPIs for Environmental Topics

Social Chapter: Cooperate and Bene®êtMutually towards a Win-win Situation

Environmental Chapter: Discovering theSplendor of Natural Environment andLeading the Way for Green Innovation

Roadmap AheadAppendixMessage fromthe Chairman

Governance Chapter:Keep Pace with theTimes and Strengthening the Foundation ofthe EnterpriseSustainabilityManagementAboutXiamen Xiangyu

Service Chapter: Pursuing Profit for the World'sWell-being, Se®ïicing for High-quality Developmentof the Nation

Xiamen Xiangyu Co.,Ltd.Xiamen Xiangyu 2022 Environmental, Social and Governance Repo®î

Protection of Employment Rights

2-7: Employees (From GRI 2: General Disclosure 2021)201-3 De®êned bene®êt plan obligations and other retirement plans (From GRI 201: EconomicPe®íormance 2016)401-2: Bene®êts for full-time employees (excluding tempora®ñ or pa®î-time employees) (From GRI 401:

Employment 2016)403-6: Promotion of worker health (From GRI 403: Occupational Health and Safety 2018)403-7: Prevention and mitigation of occupational health and safety impacts directly linked by businessrelationships (From GRI 403: Occupational Health and Safety 2018)403-8: Workers covered by an occupational health and safety management system (From GRI 403:

Occupational Health and Safety 2018)403-9: Work-related injuries (From GRI 403: Occupational Health and Safety 2018)405-1: Diversity of governance bodies and employees (From GRI 405: Diversity and Equal Oppo®îunity)Empower Employees

404-1: Average hours of training per year per employee (From GRI 404: Training and Education 2016)404-2: Programs for upgrading employee skills and transition assistance programs (From GRI 404:

Training and Education 2016)Corporate Social Responsibility (CSR)

203-1: Infrastructure investments and se®ïices suppo®îed (from GRI 203: Indirect Economic Impacts

2016)

203-2: Signi®êcant indirect economic impacts (From GRI 203: Indirect Economic Impacts)Environmental Chapter: Discovering the Splendor of Natural Environment and Leading the Way for Green InnovationGreen Logistics302-5: Reductions in energy requirements of products and se®ïices (from GRI 302: Energy 2016)

Environmental-friendly Workplace

302-1: Energy consumption within the organization (From GRI 302: Energy 2016)

302-3: Energy intensity (From GRI 302: Energy 2016)

302-4: Reduction of energy consumption (From GRI 302: Energy 2016)

302-5: Reductions in energy requirements of products and se®ïices (From GRI 302: Energy 2016)

303-1: Interactions with water as a shared resource (From GRI 303: Water and E®èuents 2018)Se®ïe Green Indust®ñ Customers/Application of Green Technology/Roadmap Ahead

Message from the ChairmanAbout Xiamen Xiangyu

Sustainability Management

Governance Chapter: Keep Pace with the Times and Strengthening the Foundation of the Enterprise

Corporate Governance

2-9: Governance structure and composition (From GRI 2: General Disclosure 2021)2-12: Role of the highest governance body in overseeing the management of impacts (From GRI 2:

General Disclosure 2021)Risk Control Management/

Compliance Management

205-1: Operations assessed for risks related to corruption (From GRI 205: Anti-Corruption 2016)

205-2: Communication and training about anti-corruption policies and procedures (From GRI 205:

Anti-Corruption 2016)

205-3: Con®êrmed incidents of corruption and actions taken (From GRI 205: Anti-Corruption 2016)

419-1: Non-compliance with laws and regulations in the social and economic area (From GRI 419:

SocioEconomic Compliance 2016)Merchant Management

416-1: Assessment of the health and safety impacts of product and se®ïice categories (From GRI 416:

Customer Health and Safety 2016)Data Security Management/Se®ïice Chapter: Pursuing Pro®êt for the World's Well-being, Se®ïicing for High-quality Development of the NationCompany Business Model/The Transformation of the Company'sDigital Intelligence

/

Social Chapter: Cooperate and Bene®êt Mutually towards a Win-win Situation

ContentsGRI standardsContentsGRI standards

Index of Standards

2-2: Entities included in the organization's sustainability repo®î (From GRI 2: General Disclosure 2021)2-3: Repo®îing period, repo®îing frequency and contact point (From GRI 2: General Disclosure 2021)2-1: Organizational Details (From GRI 2: General Disclosure 2021)2-6: Activities, Value Chain and Other Business Relationships (From GRI 2: General Disclosures 2021)2-12: Role of the highest governance body in overseeing the management of impacts (From GRI 2:

General Disclosure 2021)2-13: Delegation of responsibility for managing impacts (From GRI 2: General Disclosure 2021)2-14: Role of the highest governance body in sustainability repo®îing (From GRI 2: General Disclosure2021)2-29: Approach to stakeholder engagement (From GRI 2: General Disclosure 2021)3-1: Process to determine material topics (From GRI 3: Material Topics 2021)3-2: List of material topics (From GRI 3: Material Topics 2021)