Stock code:603565
Environmental, Socialand Governance Report
Shanghai Zhonggu Logistics Co., Ltd.
2023
Table of Contents
Strengthening Supply Chain Management 52Creating a Harmonious Community 54Diversity and Equality 55Talent Development 58Caring for Employees 61Health and Safety 65Public Welfare Undertakings 66Compliance in Operation 70Corporate Governance 71Compliance in Operation 72Business Ethics 72Risk Management 73Appendix 76GRI Index 76Performance Summary 78Reporting Evaluation and Suggestions 82
Preface 2About the Report 2Message from the Chairman 4Zhonggu Logistics at a Glance 6Course and Glories 9Annual Features 13A New Green Transport Mode of "Shipping Loose Cargo via Containers" 13Strengthening ESG Governance 18ESG Governance System 19Response to SDGs 23Leading in Low-carbon Shipping 25Tackling Climate Change 26Low-carbon Sailing 32Ecological Co-construction 35Deeply Exploring Customer Value 40
Creating Excellent Services 40Digital Shipping Transformation 46
PrefacePreface
Preface
Introduction to the ReportThis is the Environmental, Social and GovernanceReport (ESG Report) released by Shanghai ZhongguLogistics Co., Ltd. (hereinafter referred to as"Zhonggu Logistics", "we" or the "Company"). Itcomprehensively expounds the performance andmanagement measures of Zhonggu Logistics in2023 surrounding economy, environment andsociety, and discusses the common concernsof stakeholders, with focus on disclosing theenvironmental, social and governance performanceof the Company and its subsidiaries (collectivelyreferred to as the "Group"). The mention of"Zhonggu Shipping" refers to our parent company,Zhonggu Shipping Group Co., Ltd.Reporting TimeFrom January 1, 2023 to December 31, 2023(referred to as the "reporting period"); someinformation and cases might beyond the reportingperiod.Reporting Scope and BoundariesThe Report covers Shanghai Zhonggu LogisticsCo., Ltd. and all of its subsidiaries, with thesame reporting scope as the 2023 Annual Report(hereinafter referred to as the"annual report").Notes on DataThe ?nancial data herein comes from theconsolidated report for 2023, which have beenindependently audited by Pan-China Certi?edPublic Accountants LLP(specialized generalpartnership); the remaining of the information anddata are mainly sourced from the Company andgroup’sinternal statistical reports or documents.The monetary amounts indicated herein aredenominated in RMB.Reference StandardsThe Report is prepared with reference to theCompilation Guide for "Corporate SocialResponsibility Ful?llment Report" and the Guidelineon Environmental Information Disclosure by ListedCompanies published by Shanghai Stock Exchange(referred to as the "SSE"), and with appropriatereference to the GRI Standards by the GlobalReporting Initiative (GRI).Con?rmation and ApprovalThe Report was approved by the board of directorson March, 26, 2024 following the con?rmation by themanagement.
About the Report
PrefacePreface
?Chairman of Zhonggu Logistics
Message fromthe Chairman
As a private leading enterprise specialized in container logistics in the domestic tradesector for 20 years, Zhonggu Logistics always stays true to the original intention of"Changing China's Logistics with Containers"and product values of "safe, e?cient andgreen", and is committed to providing customers with whole-process container logisticsservices. Always pursuing sustainability in ESG, we are committed to achieving win-windevelopment together with shareholders, customers, suppliers, employees, and othercommunities of shared interests. In the past year, we continued to forge ahead, seizingmarket opportunities, strictly controlling costs, and re?ning internal management. In themeantime, we consistently boost our productivity and improve our governance structure,to create sustainable value for our employees, industry, and society.To retain talents, we stick to the principle of putting people ?rst and helping each otherto attain success. Zhonggu Logistics is always committed to"helping employees achieveambitions in fun and through learning". We conscientiously safeguard the legitimaterights and interests of our employees, thus forming a stable and harmonious workingenvironment. We enrich the cultural life of employees and enhance their sense ofbelonging by regularly organizing team building and festival celebartion activities. Also,we value employee training and development. In 2023, we promoted employee growthby improving the system of new employee induction training and in-service employeepromotion training, which lays a solid talent foundation for sustainable development.
Zhou Bin
We pursue green, environmental, and sustainable development. In the past year, weupgraded our own ?eet with 15 green and environmentally friendly container ships with aload capacity of 90,000 tons to help creating a future of green shipping in a more intensiveand energy-e?cient manner. We actively promote railway-ocean multimodal transport totruly achieve one-stop transport. We continue to establish logistics parks at the hub nodesof the total logistic process. The gradual completion and operation of multimodal transportlogistics parks in Rizhao, Qinzhou and Xiamen will contribute to the rapid formation ofthe total logistic process. Against the backdrop of achieving carbon peaking and carbonneutrality in China, we are committed to accelerating the pace of "shipping loose cargo viacontainers". This initiative not only helps to achieve the national"carbon peaking and carbonneutrality"goals, but also makes important contributions to tackling global climate change.To survival and sustainable development, we constantly create value and distributedividends to stakeholders. In 2023, we plan to distribute a cash dividend of 1.5 billionyuan(accounting for 88.05% of the net pro?t gained over the same period), providing ourinvestors with returns in cash. In 2023, we released the Shareholders Return Plan for theNext Three Years. From 2023 to 2025, we will continue to implement a positive cash dividendpolicy while ensuring stable operation, to share development results with all shareholders.Speci?cally, the cumulative dividends will account for at least 60% of the cumulative pro?tsavailable for distribution.In face of external challenges and changes in 2024, we will actively carry out relevantbusiness activities mainly around rail-water multimodal transport, whole-process integratedlogistics and digital transformation with a focus on organizational transformation, to achievehigh-quality and innovative development based on cost reduction and bene?t increase.Meanwhile, we will broaden the application of containers in the production logistics ?eld. Inaddition, we will assume more social responsibilities, work with all stakeholders to delivermore stable and e?cient container logistics services, and make contributions to China'sgreen better future.
Zhonggu Logistics at a GlanceZhonggu Logistics at a Glance
Zhonggu Logisticsat a Glance
Zhonggu Logistics is one of the ?rst companies in Chinaspecializing in container shipping in the domestic tradesector. It was listed on the SSE in September 2020(603565.SH). Since its inception, the Company hasbeen o?ering clients from industrial and agriculturalcommerce safe, e?cient, green, and convenient whole-process multimodal transport services, powered bystandard containers and big data, championing thecorporate mission of "Changing China's Logisticswith Containers"with steady development. ZhongguLogistics has grown into a comprehensive modernenterprise that integrates the business of linertransport, comprehensive logistics, ship management,entity investment, etc.As of the end of the reporting period, Zhonggu Logisticshad expanded the business to 150 ports in nearly30 provinces and cities of China, having more than200 o?ces and branches across China. Now we cantransport over 10,000 types of goods through generalcargo containers, food-grade SQ containers, coalcontainers and other standard containers, as well asvarious types of special containers such as refrigerated
Company Pro?le
containers, ?at rack containers and open-top containers.Besides the water transport, we integrate rail transportandroad transport, and provide cold-chain transportservices and multimodal transport services such as land-sea multimodal transport, river-sea multimodal transport,water-water transfer, sea-rail multimodal transport and soon. Zhonggu Logistics has formed a"two horizontal and onevertical"mega-system of maritime transport and logistics,and connecting China's coastal areas with the YangtzeRiver and the Pearl River, and occupies an industry-leadingposition relying on the high container throughput fordomestic trade in dozens of ports along the coastal areasand the Yangtze River.The Company is mainly engaged in container logisticsservices. It is one of the ?rst companies in Chinaspecializing in domestic coastal container shipping. Itstransport capacity ranks among the top three in thecontainer transport market for domestic trade. At present,Zhonggu Logistics is stepping up entire logistics e?ortsthrough a"landing strategy"to provide clients with"door-to-door"logistics solutions to further enhance corecompetitiveness.
Zhonggu Logistics at a GlanceZhonggu Logistics at a Glance
Since the establishment, Zhonggu Logistics, under the principle of "culture ?rst",has always focused on building corporate culture to create core competence.Amid the growth, Zhonggu Logistics always keeps abreast of the times in culturebuilding, constantly making new progress in this regard. In the process ofcultural development, transformation and accumulation, Zhonggu Logistics hascontinuously enriched, regulated and updated corporate culture. Playing a role ofguiding, fusing, shaping, and motivating, culture has become a driving force forZhonggu Logistics to achieve leapfrog development.
Upholding the core values of"Loyalty, Sincerity, Diligence", Zhonggu Logistics creates long-term sustainablevalue for upstream and downstream stakeholders relying on self business development. In 2023, we wonrecognition and praise from all parties through unremitting e?orts in a steady manner.CulturalValues
Sustainability Course
Course and Glories
Formed an initial scale from 2010 to 2013
A new future in 2022-2023
Strategic transformation from 2014 to 2016
New development from 2017 to 2021
In 2010, Zhonggu Logistics was o?ciallyestablished. Its controlling shareholder ZhongguShipping is one of the ?rst companies in Chinaspecializing in container shipping in the domestictrade sector
2022: The ?rst container ship titled"Zhonggu Jinan"with 4,600 TEUs successfully set sail, and the strategyof"shipping loose cargo via containers"was implemented in an orderly manner2023: 15 of 18 container ships with 4,600 TEUs have been delivered, and the remaining three will bedelivered in succession in the ?rst half of 2024
In 2015, Shanghai ZhongguLogistics Co., Ltd. wasestablished
In 2017, strategic investorssuch as Softbank ChinaVenture Capital (SBCVCSoftbank China Capital),YTO Express、 ShanghaiFTZ Fund,、East BellVenture Capital and GLPwere introduced
In 2021, furtherexpanded transportcapacity andenhanced corecompetitiveness ina new developmentperiod
In 2016, big ships wereintroduced from "ZhongguShandong", "Zhonggu Liaoning",etc., to improve the single shipload and shipping e?ciency andreduce shipping costs
In 2019, with implementation ofthe multimodal transport strategy,form a multimodal transportlogistics platform, and the industrialtentacles were extended from theeconomic hinterland of coastal andriverside provinces and cities to theinland areas
In 2017, the direct-to-customerstrategy was launched, realizingthe transformation of serviceobjects from freight forwardersto direct customers
In 2020,o?cially listedon A-sharemain board(603565. SH)
In 2011, key routes including "Shanghai-Guangzhou", "Qingdao Xiamen", "QingdaoGuangzhou", "Taicang-Guangzhou", and "RizhaoGuangzhou" were successively opened, marking thatZhonggu Logistics became one of the ?rst companiesin China specializing in container shipping in thedomestic trade sector that opened boutique routes
Business Layout
Zhonggu Logistics at a GlanceZhonggu Logistics at a Glance
In the past dozen years of rapid growth, we alwaysvalue the return to shareholders. Since being listedon September 25, 2020, the Company has distributedcash dividends to shareholders, and the cumulativecash dividends reach up to 5.57 billion Yuan.
In 2022, the cash dividendamounted to RMB 2,015million (tax inclusive)
In 2020, the cashdividend amounted toRMB 600 million (taxinclusive), and thedividend payment ratewas 58.89%
In 2023, the cash dividendamounted to RMB 1,512million (tax inclusive)In 2021, the cashdividend amountedto RMB 1,438 million(tax inclusive), and thedividend payment rate
was 59.82%
Return to Shareholders
Sustainability Rating
Wind ESG rating A
Zhonggu Logistics at a GlanceAnnual Features
EconomicIndicators Unit20232022Total TEU capacityTons Approx. 3.51 million Approx. 2.6 millionContainer inventory TEUsApprox. 470,000Approx. 400,000Shipping volumeTEUsApprox.15 millionApprox.12 millionOperating incomeYuan12,438,791,41814,208,916,476Net income attributed to shareholdersYuan1,717,277,5552,741,385,744Income tax expenseYuan560,333,171925,522,523Audited basic earnings per shareYuan/share0.82
1.31
Cash dividendTen thousand Chinese Yuan1,512,045,4342,014,920.00Dividend payment rate%88.0573.50
SocialIndicatorsUnit20232022Days of work lost due to occupationalinjuries
Day012.00Work injury rate%00.07Total number of traineesPerson times22,32818,545Average number of hours of training peremployee
Hour44.2840.28Number of complaints received aboutproducts and services
No.170146Donations outside the communityYuan200,0001,000,000Employee volunteer hoursHour12,00086,400Social contribution per shareYuan/share
EnvironmentalIndicatorsUnit20232022GHG emissions intensity
Ton of CO2 equivalent/
million Chinese Yuan
80.9562.38
Energy intensitykWh/million Chinese Yuan301,242.42232,816.21Generation intensity of hazardous wasteTon/million Chinese Yuan0.120.10Generation intensity of harmless wasteTon/million Chinese Yuan0.050.05Water consumption intensityTon/million Chinese Yuan8.165.28
Annual Features
As China's economic and industrialstructure is continuously optimized andindustry segmentation is more specializedand market-oriented, the logistics industryinevitably tends to achieve seamlesslinkage in cargo transport. Also, to furtherachieve the goals of carbon peaking andcarbon neutrality, the transport industry inChina increasingly needs to reduce carbonemission. Container transport in thedomestic trade sector, with the advantagesof"improving the overall transporte?ciency, reducing social logistics costs,and promoting energy conservation,emission reduction and carbon reduction",has become an important means ofenhancing infrastructure connectivity,assist in achieving seamless transportationand contribute to achieving carbonpeak and carbon neutrality goals in thetransportation industry.
A New Green Transport Mode
of "Shipping Loose Cargo viaContainers"
Key Performance
The"shipping loose cargo via containers"mode refers to transport of bulk cargoes such as coke, coal and oreoriginally loaded in railway gondolas, road trucks and bulk cargo ships, through sealed containers.
In active response to the national call of "to speed up the building of a modern comprehensive transportsystem that is safe, convenient, e?cient, green and economical", Zhonggu Logistics has proposed andimplemented the strategic planning of"shipping loose cargo via containers"and boosted the constructionof a strong transportation country with multiple values including environmental value, customer value,and industry value. At present, Zhonggu Logistics has come up with an implementation plan for thedemonstration projects of multimodal container transport in the domestic trade sector characterizedby "networked integration of air-sea-land logistics stations, and e?cient, intelligent and standardcollaboration", to lead the high-quality development of multimodal container transport in the domestictrade sector. The logistics base under Zhonggu Logistics has been included in the list of the fourth batchof national multimodal transportation demonstration projects. Through this implementation plan, itleads the high-quality development of national trade container multimodal transportation and supportsthe dual carbon goals of transportation.
1213
1.651.99
Annual FeaturesAnnual Features
Adjusting the transportation structure iscrucial for reducing carbon emissions in thetransportation industry. The low-carbonattribute of "bulk-to-container" transportationhas achieved a green upgrade for the logisticsof bulk cargo, while multimodal transportationcan further reduce carbon emissions in thetransportation process, accelerating thetransition of the transportation industrytowards a green and low-carbon model.Based on reducing Zhonggu Logistics' owncarbon emissions, the "bulk-to-container"transportation model also helps customersenhance the low-carbon attribute of theirproduct value chain, transferring green value toa wider range of application scenarios.In addition, through the "shipping loose cargovia containers" transport mode to controlenvironmental pollution, minimizes the dustraising, scattering, spilling or volatilizationphenomenon of bulk cargo in the process ofloading, unloading, transport and stockpiling,thus reducing the environmental pollution from
As an important means for"cost reduction and e?ciency enhancement"of the logistics industry, container transportin the domestic trade sector can fully leverage the advantages of container transport and water-land multimodaltransport such as high efficiency, low cost, and large transport capacity. Upholding the client vision of "makingcustomers the most competitive players in their industries", Zhonggu Logistics continuously improves servicequality and e?ciency, as well as the safety, stability, and economy of cargo transport. At the same time, we continueto optimize service e?ciency and create e?cient, automated, and energy-saving business models through digitalconstruction.
During the reporting period, Zhonggu Logistics extended the service of"shipping loose cargo via containers"to73 new railway stations, achieving an overall freight volume increase by more than 20%, and a turnover ratio ofapproximately 22%. The carbon emissions of Zhonggu Logistics from the"shipping of loose cargo via containers"reached 202,942 tons, which was 215,850 tons and 1,604,030 tons less than carbon emissions from rail transportand road transport respectively.
High-quality and E?cient - Creating Customer Value
According to the 2019 Statistical Bulletin on the Development of the transport Industry, standard coal consumption of coastal freighttransport enterprises was 4.8 kg/1,000 ton-nm, which is equivalent to 0.00259 kg/ton-km.
According to the Greenhouse Gas Emission Coe?cients of Common Fuels, the carbon emission coe?cient of coal is 2.5 kg CO2/kg.
According to the 2019 Statistical Bulletin on the Development of the transport Industry, the standard coal consumption of road freightenterprises was 1.7 kg/100 ton-km, which is equivalent to 0.017 kg/ton-km. According to the 2019 Railway Statistics Bulletin, thecomprehensive energy consumption of railway transport was 3.94 tons of standard coal/1 million ton-km, which is equivalent to 0.00394kg/ton-km.
?The e?cient and convenient"one-stop"transportmode has opened a breakthrough for the high-quality development of multimodal transport.?At present, relying on the sound domestictransport network and business foundation,Zhonggu Logistics has achieved delivery of thewhole-process door-to-door logistics serviceand established a comprehensive informationplatform system, which lays a solid foundation forthe"one-stop"multimodal container transport. The"innovative small high containers"launched byZhonggu Logistics for the"one-stop"multimodalcontainer transport are larger than ordinary containersfor domestic trade by about 10% in capacity, and canreduce the freight cost by RMB 20/ton.?In the future, Zhonggu Logistics will fully leveragethe advantages of fully integrated containertransport in the domestic trade sector, extendthe traditional"port to port"and"station to port"waybills to"station to station"and"door to door"multimodal transport bills of lading, optimizemultimodal transport process and managementlinks, and boost the application and promotion ofthe"one-stop"multimodal container transport inthe domestic trade sector.
Key direction of qualityimprovement: Be a pioneerin the "one-stop" multimodalcontainer transport in thedomestic trade sector
?To accelerate the integrated container transportin the domestic trade sector, it is necessary tostrengthen the research and application of e?cient,automatic and energy-saving multimodal transportequipment and supporting information controlsystem.?At present, Zhonggu Logistics is activelydeepening the digitalization of information systems,introducing the concept of the Internet into theshipping industry, and providing clients withwhole-process logistics information services. Wehave independently developed the e-commerceplatform, order exchange system, trailer systemand so on, realized dynamic automation and visualmanagement of containers in major ports throughdigital port docking, and reduced the workload ofcontainer management personnel of multimodaltransport demonstration projects by 90%.?In the future, Zhonggu Logistics will continue toincrease the investment in seaport-type automatedtrack cranes and supporting information controlsystem and strive to achieve uni?ed control of theoverall production process, playing a demonstratingrole in the construction of inland multimodalcontainer transport ports (stations) in China.
Key direction of e?ciencyoptimization: Build a ?rst-classmultimodal container transportport (station) in China
?Continuously enrich the low-carbontransportation mode, and reduce carbonemissions of totally 1.3754 million tons duringthe demonstration period of multimodalcontainer transportShort-term goals ofZhonggu Logistics
Low-Carbon Development and EnvironmentalProtection - Creating Environmental Value
transport and port operations. According to the data releasedby the National Bureau of Statistics, China's freight turnoverreached 2,261.22 billion ton-kilometers in 2022. If only watertransport mode was adopted, 58.53 million tons of standardcoal would be consumed
, and 140 million tons of CO
wouldbe emitted
. Compared with road transport and rail transport
,container water transport in the domestic trade sectorenables more efficient energy conservation and emissionreduction with greater contribution to ecological protection.
Carbon emissions under di?erent transport modes
Only water transportCarbon emissions(10,000 tons of CO
)
14,488
22,025
95,030
Only rail transport Only road transport
Annual FeaturesAnnual Features
In response to the call for standardized and intensive development of container logistics in the domestic tradesector, Zhonggu Logistics will fully leverage leading advantages, and steadily explore the modes of cooperationbetween upstream and downstream players, through four major measures: product co research, informationexchange, resource sharing, and advantage co construction, to jointly propel the development of the industrialchain, build a closed-loop, one-stop and coordinated ecosystem of multimodal container transport in thedomestic trade sector, so as to e?ectively support China's new development paradigm of "dual circulation" (withdomestic circulation as the mainstay and domestic and international circulations reinforcing each other).
During the reporting period, Zhonggu Logistics provided clients with more cost-effective choices andstandardized service systems through various initiatives including enriching goods suitable for containertransport, launching customized services, optimizing the freight rate review system, and developingstandardized after-sales products. According to the improvement in both service quality and efficiencythrough "shipping loose cargo via containers", Zhonggu Logistics has gained extensive recognition fromclients. During the reporting period, Zhonggu Logistics shipped 1 million TEUs of loose cargo via containers,achieving a YoY increase of nearly 30%.
Co-creation and Sharing - Creating Industry Value
?Deepencooperation withvarious railwaybureaus, use portand railway resourcesharing as a link,strengthen businesscooperation, andjointly create serviceproducts of sea-railmultimodal transport
Product co-research
?Fully implement theoperation mode ofmultimodal transportoperators, explore thecombination of railwaytransport informationand water transportinformation, build anintegrated rail-waterinformation platform,and achieve innovativeintegration of logisticsresources of rail-watermultimodal transport
Informationexchange
?Continuouslyintensify theinterchange of railwaycontainers and ourcontainers, strengthenstation sharing, andjointly cultivate thecontainer operators ofrail-water multimodaltransport in thedomestic trade sector
Resource
sharing
?Vigorously advancespecialized shippingof loose cargo viacontainers includingcoal, grain and ore, anddeepen cooperationwith relevant terminalcompanies and railwaycontainer yards, toincrease the capacityof shipping loosecargo via containersand better support theadjustment of China'stransport structure
Advantage co-
creating
?Continuously improve service qualityand e?ciency, and will open nine sea-rail multimodal transport lines as ofDecember 31, 2024Short-term goals ofZhonggu Logistics
Industry SharingDuring the reporting period, the 2023 Tianjin InternationalShipping Industry Expo, themed by "shipping throughoutthe world, leading the future" was kicked o?, atwhich more than 400 leading shipping companies,listed companies, and world-renowned ports from 22countries and regions jointly discussed new trends,paths and opportunities concerning the developmentof the shipping industry. As a representative of shippingcompanies, Zhonggu Logistics made a stage pose inthe Digital Shipping Service Trade Exhibition Area,showcasing the development trend in the containertransport in the domestic trade sector and the strategiclayout in multimodal transport logistics, and highlightingthe corporate accountability in promoting green, low-carbon and digital transformation and pursuing high-quality development of the shipping industry.Over the same period, Zhonggu Logistics was invited to attend the 3rd World Class Port IntermodalConference. Participants included representatives from relevant ministries and commissions of China,government departments of Tianjin and other places, shipping industry research institutions and industryassociations, global leading enterprises of shipping and railway, and large integrated logistics operators,as well as China-Europe Railway Express and other sea-rail multimodal transport enterprises. Focusing onthe theme of "improving the quality and e?ciency of multimodal transport, better serving the Belt andRoad cooperation", the participants built consensus on further promoting the high-quality development ofmultimodal transport.
Strengthening ESG GovernanceStrengthening ESG Governance
Board ofDirectors
?Make decisions on major ESG issues?Review and analyze the progress related toattainment of ESG goals?Evaluate and determine ESG risks and
sustainable development suggestions
ESG WorkingGroup
?Oversee work related to ESG?Formulate relevant ESG strategies, systems and
management guidelines?Prepare ESG reportsFunctionalDepartments
?Implement work related to ESGESG Governance Structure
Strengthening ESGGovernanceAs a leader in the logistics industry of China,Zhonggu Logistics always adheres to the conceptof sustainable development, actively contributesto the realization of United Nations SustainableDevelopment Goals (SDGs), and continuouslyimproves the ESG governance system, activelyengage in communication with stakeholders andfollow the analysis results of major issues to carryout ESG governance work, and gradually achievedsustainability from strategy to action.
Always championing the corporate mission of "Changing China's Logistics withContainers", set the long-term goal of sustainable development, established the three-tiered ESG management structure in which the board of directors plays a leading role,achieved timely, e?ective, multi-dimensional communication with various stakeholdersthrough multiple channels, and won the trust and support of the capital market, creatingsustainability value for society at the same time.
The three-tiered ESG governance structure with clear rights and responsibilities helpsZhonggu Logistics to carry out ESG work e?ectively, better tackle ESG. Zhonggu Logisticsensures that the concept of sustainability is implemented in all aspects to enhance theperformance in social responsibility and sustainability.
ESG GovernanceSystem
By establishing a complete ESG governance structure, Zhonggu Logistics hascomprehensively incorporated the concept of sustainability into all links of routineoperations and management. The Company has established the three-tiered ESGmanagement structure composed of the Board of Directors, ESG Working Group andfunctional departments. As the highest decision-making body, the Board of Directors isresponsible for overall planning the Company's ESG work from a global perspective. Also,the Board of Directors is responsible for supervising, deliberating and making decisionson the ESG strategy and goals, and discussing major issues and risk identi?cation results.The Company has also established an ESG Working Group, headed by the Secretary ofthe Board of Directors responsible for annual reporting to the Board of Directors. Theheads of each functional department serve as members of the group supervising theimplementation of ESG work by each functional department. Each functional departmentis responsible for carrying out speci?c ESG work and ensuring the actual progress.
ESG Governance Structure
Strengthening ESG GovernanceStrengthening ESG Governance
StakeholderKey ConcernCommunication MechanismGovernment & regulatoryauthorities
Tax transparencyAnti-corruptionEnvironmental compliance
Information disclosureFeature reportsSpot checksShareholders & investors
Corporate governanceRisk managementMarket performanceEconomic performance
Shareholders' meetingsInformation disclosureSSE E-interactiveRoadshowsSite visits
Employees
Equal employmentDiversity & equality ofopportunityEmployee careTraining & educationOccupational health & safety
Sta? congress meetingsE-schoolEmployee satisfactionsurveysDiscussion & communication
Clients
Client satisfactionClient privacy protectionOptimization of shipoperationSafety management
Client satisfaction surveyCommunication andcomplaint channelsTrade shows & promotionalcampaignsContractors/Suppliers
Responsible sourcingEnvironmental & socialassessment of suppliers
Signing of a contract/agreementSupplier trainingSummitsRepresentatives ofcommunities/ environmentalgroups
Community interestEnvironmental complianceGHG emissionWastewater dischargemanagement
News mediaField investigation
Given the opinions of stakeholders are very important for formulating and implementing thesustainable development strategy, and based on the characteristics of di?erent stakeholders,we keep deeper and broader communication and exchange with them through various channelsincluding the mechanism for normalized and diversi?ed two-way communication.Meanwhile, we timely make work plans according to the appeals and expectations of allstakeholders, to contribute to the long-term sustainable development. Our key stakeholdersinclude government and regulatory authorities, shareholders, investors, employees, clients,contractors/suppliers and community/environmental representatives. And we have conductedirregular communication with stakeholders in six areas, including economy, corporate governance,environment, sta?, supply chain.
Stakeholder Communication
To understand the environmental, social and governance issues of concern by stakeholders more deeply andobjectively, Zhonggu Logistics has identi?ed the major issues of great concern to internal and external stakeholders,through soliciting the opinions of stakeholders and comprehensively considering the factors of policy orientation,industry development and corporate development. We will response the issues concerned by all parties in thisreport, and ful?ll relevant environmental, economic, and social responsibilities.
Issues of Major Concern
?Analyze the issues of concern by the capital
market and rating agencies?Focus on macro policies, industrial policies
and regulatory requirements?Benchmark information on peer best
practices, business characteristics and so on
Benchmarking analysis
?Form a matrix of major issues according to
priority issues of concern by all stakeholders?Focus on disclosing relevant issues in the
Report?Importance to stakeholders?Strategic importance to Zhonggu Logistics
Identify the issuesrelated to sustainable
value co-creation
?Organize internal interviews with the
management and other employees?Design and issue questionnaires of internaland external stakeholders
Stakeholder survey
?12 highly important issues?21 moderately important issues?2 less important issues
Form an analysis matrix
of substantive issues
Strengthening ESG GovernanceStrengthening ESG Governance
Zhonggu Logistics actively contributes to the realization of 17 SDGs,aiming to make due contributions to global sustainable development.Zhonggu Logistics has incorporated the SDGs into the ESG managementstructure in line with the 2030 Agenda for Sustainable Development.When developing ESG strategies, Zhonggu Logistics pays specialattention to major issues of the industry to which the Company belongs,to ensure the proper and positive responses to the SDGs.
Response to SDGsMatrix of ESG-related major issuse in 2023
Importance to stakeholders
Importance to stakeholders
Strengthening ESG GovernanceLeading in Low-carbon Shipping
Leading in Low-carbon Shipping
In response to China's "carbon peaking and carbon neutrality"goals andInternational Maritime Organization's (IMO) strategy of"reaching net-zero GHG emissions from international shipping by or around 2050",the shipping industry is pursuing green and low-carbon developmentas an inevitable trend. In the face of risks and opportunities for climatechange, Zhonggu Logistics has taken some positive low-carbon measuresfor all business aspects, to comprehensively promote the low-carbontransformation. We are sticking to environmental compliance, takingenvironmental compliance as the bottom line, and further reduced theimpact of pollutant emissions on the environment, while safeguardingecological value through resource conservation, biodiversity protection,etc.
Establish the sound internalsafety management frameworkand occupational healthassurance system, and organizediversi?ed safety and healthtrainings, to enhance the safetyawareness of employeesEstablish a diversi?ed talentcultivation system to helpemployees further improve theirabilities and occupational value
Emphasize workplace equality,provide male and femaleemployees with the samedevelopment platforms andopportunitiesFormulate the Water ResourcesManagement Plan for Shipsand other rules and policies tostrengthen scienti?c and uni?edmanagement of water-relatedprojects of the CompanyUse high-quality fuel for allself-owned ships accordingto national environmentalrequirements, and continuouslyreduce the fuel consumption ofshipsEstablish and improve theinternal compensation andbene?t system based onemployees’ capabilities andperformance in consideration ofmarket levelsIncrease investment in R&D,and promote transformation ofdigital shipping with focus oninformatization, digitalizationand intellectualization
Create a diverse and equalemployment environment inwhich all personnel enjoy fairand equitable employmentopportunities, and pursuethe distribution rationality inemployee gender, age, and regionVigorously implement thestrategy of "shipping loosecargo via containers"and boostconstruction of sustainablecommunitiesEstablish a sound containermanagement and shippingservice system to safeguardthe rights and interests ofconsumersReduce the emissions ofgreenhouse gases and harmfulgases in strict accordance withthe emission requirements ofvarious countries and regions,and build green shipsStrengthen the utilization ofwater resources and wastewaterdisposal and dischargeof ships, to reduce waterconsumption and prevent watercontaminationImprove the corporategovernance structure, strengthenanti-fraud management, supplierintegrity promotion and anti-corruption publicity, to reinforcethe foundation for sustainabledevelopmentFormulate and implement thebidding/tender process, andfollow the principle of fair andequitable procurement, toensure business with suppliersin good faith
SDGs
Response action ofZhonggu Logistics
SDGs
Response action ofZhonggu Logistics
Leading in Low-carbon ShippingLeading in Low-carbon Shipping
On the basis of ensuring compliance in environmental management, Zhonggu Logistics actively explores thepossibility of alleviating pressure from climate change and environmental pollution in a scienti?c and forward-looking manner. We well-established the climate change governance structure, according to the disclosuresuggestions of the Task Force on Climate-related Financial Disclosures (TCFD), we have comprehensivelyidenti?ed climate change risks and opportunities, and made clear the management strategy and action pathfor tackling climate change. In addition, we have set multiple indicators for tackling climate change, to achievequantitative analysis and precise review through monitoring indicator changes.
Tackling Climate Change
Zhonggu Logistics has developed the scienti?c climate change management strategy. Through analyzing climatescenarios, identifying and evaluating climate change risks and opportunities, we have identified short-term,medium-term and long-term physical risks and transition risks, as well as opportunities related to energy, productsand services.Specially, , physical risks include acute and chronic risks, while transition risks include the risks relatedto policies, laws, technologies, markets, and reputations.Additionally,, we have developed management strategiesand implementation plans, including the short-term, medium-term and long-term strategies for addressing climatechange (based on the identified risk exposure and the existing risk management plan). Furthermore, we havepriotitized each management initiative to ensure e?ective implementation.
Strategy of Climate Change Governance
We have incorporated climate change related management functions into our three-tiered ESG managementstructure, established a transparent communication mechanism, efficiently integrated various managementdepartments, and enhanced the e?ectiveness of climate change governance.
Climate Change Governance
Board ofDirectors
?Develop management strategies related to climate change risks and
opportunities?Supervise and review the e?ectiveness of management methods
ESG WorkingGroup
?Review and approve climate related goals, and track the progress in
realizing related performance goals?Determine and control the budgets, resources and investments for
identifying, mitigating and monitoring climate related issuesFunctionalDepartments
?Identify the risks and opportunities related to climate change?Strengthen climate change risk control, and implementation of
climate related management strategies
Risk categoryRisk nameRisk description
Potential?nancial impacts
Physicalrisks
Acuterisks
Tsunami,rainstorm andother naturaldisasters
It is likely to cause damage to shippinginfrastructure, ships, and cargoes,andinterrupt the transport process. Theships, crew and cargoes are exposedto risks, which might result in delayedshipment and claims for damage to thecargo.
Increase in theoperating cost:
write-o? andearly scrappingof existing assets;and more di?cultyin transport.Extremeweatherconditionssuch astyphoons andcyclones
Typhoons or cyclones will a?ect thenavigation speed and direction of ships,which might further result in deviation/rerouting or delay, or hinder berthing ofships. As a results, the ships will fail toarrive and berth at ports and deliver goodsto downstream ?lms in a timely manner,indicating a higher risk of contract breach.
Increase in theoperating cost:
write-o? andearly scrappingof existing assets;and more di?cultyin transport.
Chronicrisks
Globalaveragetemperaturerise
Long-term climate changes such as averagetemperature rise and extreme wind speedchange easily a?ect shipping time, channelselection and transport e?ciency, whichmight also a?ect the site selection andfuture construction of port facilities.
Increase in theoperating cost:
changes inthe navigationchannel result inan increase in fuelconsumption andtime costs
Leading in Low-carbon ShippingLeading in Low-carbon Shipping
Risk categoryRisk nameRisk description
Potential?nancial impacts
Physicalrisks
Chronicrisks
Sea level rise
If the sea level rises, some ports locatedbelow the sea level may sink and becomeunusable. In this case, we have to changethe navigation route, which will increaseoperating costs. In addition, tidal changesa?ect the sedimentation and tra?cability ofnavigation channels.
Increase in theoperating cost:
changes inthe navigationchannel resultin an increase infuel consumptionand time costs,and write-o? andearly scrapping ofexisting assets.Oceanacidi?cationand damageto marinebiodiversity
Ocean acidi?cation accelerates thecorrosion of ships, port infrastructure andrelated infrastructure and facilities, thusneeding high maintenance costs.
Increase inthe operatingcost: highermaintenance cost
Transitionrisks
Policiesand legalrisks
Changes inrequirementsandregulation
Various countries are successivelyformulating relevant laws and regulationson tackling climate change. The Chinesegovernment never stops the pace ofpromoting green shipping and supportingthe low-carbon transformation of theshipping industry, having raised morestringent requirements for energy useby enterprises. In addition, the IMO hasenvisaged a reduction in carbon intensity ofinternational shipping in its Initial Strategyon Reduction of GHG Emissions from Ships.Furthermore, China has promulgated somelaws, regulations or restrictive clauses onclimate change and ecological protection,which causes certain restriction or impacton our ocean freight forwarding businessand may bring some legal litigation risks.
Increase in theoperating cost:
more penaltiescaused by highercompliance risks.
Carbonmarket andtrading
After the opening of the national carbonmarket, carbon trading prices may rise,which in turn will a?ect the Company'sinternal environmental management,operating decisions, and operating costs.
Increase in theoperating cost:
higher cost ofcarbon reduction.
Control overatmosphericpollutionfrom vessels
In 2018, the Ministry of Transport of Chinaissued the Implementation Plan for ShipAir Pollutant Emission Control Area ..From January 1, 2020, new Guidelinesfor Supervision and Management ofAtmospheric Pollutant Emissions fromVessels was implemented, which putsforward new requirements for the sortingand supervision of atmospheric pollutionfrom vessels.
Increase in theoperating cost:
more penaltiescaused by highercompliance risks.
Risk categoryRisk nameRisk description
Potential?nancial impacts
Transitionrisks
MarketRisk
Rise in energyprices
The rising carbon tax cost of crude oil andthe application of fuel cleaning technologymake fuel oil prices rise.
Increase in theoperating cost:
rise in fuel pricesChangesin clientbehaviors
Our clients have proposed requirementsfor reducing carbon emissions in containertransport or prefer energy transport serviceswithout or with less carbon emissions.
Income decline:
decrease in
demand for
services.
Technicalrisks
Research anddevelopmentof energy-saving andemissionreductiontechnologies
If there is no system or new technologyfor replacing traditional fuels, we may bea?ected by rising fossil fuel prices andregulatory regulations.
Increase in the
operating cost:
more investment
in research and
development,
and an increase
in research and
development
costs.
Reputation
risk
Disclosure ofinformationrelated toenvironmentalperformance
Investors, regulatory agencies, clients,and other stakeholders have raised higherinformation disclosure requirements forthe shipping industry in tackling climatechange. Non-compliant management orincomplete environmental performancedisclosure will undermine our reputationand image.
Income decline:
decrease in
demand for
services.Intensecompetition inenvironmentalperformanceamongenterprises
Investors and clients may choosecompetitors with better environmentalperformance, possibly resulting in adecrease in the Company's revenue.
Income decline:
decrease in
demand for
services.
Leading in Low-carbon ShippingLeading in Low-carbon Shipping
Zhonggu Logistics proactively identi?es the opportunities from climate change, aiming to convert challenges into anew driving force for development. We are fully aware that the ongoing global climate change is not only a test, butalso an opportunity for transformation. Therefore, by identifying and analyzing climate change conditions, we striveto accurately grasp the market opportunities from climate change, optimize our strategic layout and seize marketopportunities ?rst.
Opportunitytype
Climate-related
opportunities
Response strategy
TimedimensionEnergysources
Rise of newtechnologies
To cope with adverse factors such as possible unavailabilityof traditional energy, Zhonggu Logistics will increasethe proportion of renewable energy to ensure businesscontinuity.
Mid-term
Market
Climatechange a?ectsclients' choice
of transport
means
Compare with other transportation, such as air transport,road transport and rail transport, shipping is superior interms of reducing CO
emissions per ton-kilometer. Inaddition, shipping is highly adaptable to certain extremeweather conditions such as heavy snow. Therefore,more and more clients, to meet their needs for betterdevelopment, may prefer to choose shipping, changingtheir transport means.
Long-term
To improve the e?ciency of controlling climate change risks, Zhonggu Logistics integrates the climate change riskcontrol process and the overall risk control process, and actively evaluates and deals with the identified climatechange risks, to ensure they are controllable. Taking physical risks as an example, we carry out risk managementwork from both institutional and technical perspectives to ensure the business stability and continuity. Activelyseizing opportunities related to climate change and relying on our own technological advantages, we haveincorporated the low-carbon concept into our products and services to promote the development of green shipping(see the "Low-carbon Sailing" section for details).
Risk Management
?In order to e?ectively deal with the physicalclimate risks caused by extreme weatherand natural disasters, Zhonggu Logistics hasdeveloped emergency manuals and extremeweather prevention instructions related toclimate change, including the Ship/ShoreEmergency Manual and the Instructionson Typhoon Prevention and Resistance. Byimplementing relevant regulations, ZhongguLogistics can e?ectively minimize physicalclimate risks, ensure the safety of personnel,ships and cargoes, and guarantee the stabilityand safety of business operations.
Institutional guarantee
?The Company has launched meteorologicalnavigation services for ocean routes, andachieved precise navigation through theroute design by specialized meteorologicalnavigation companies, thus e?ectivelyavoiding the impact of extreme weather onship safety and e?ectively ensuring the safetyproduction. During the reporting period, allships of ours were not disturbed or damagedby extreme weather events such as typhoonsand rainstorms.
Technical guarantee
IndicatorUnit20232022Changes
Category 1 Total GHGemissions
Ton of CO
equivalent
1,005,206.41885,729.9313.49%Category 2 Total GHGemissions
Ton of CO
equivalent
1,765.64 579.34204.77%Total GHG emissions
Ton of CO
equivalent
1,006,972.05886,309.2813.61%GHG emissions intensity
Ton of CO
equivalent/million ChineseYuan
80.9562.3829.77%Total direct energyconsumption
kWh3,745,413,597.623,308,066,144.5613.22%GasolinekWh1,622,251.421,431,532.1213.32%DieselkWh310,356,964.81288,077,799.107.73%Low sulfur fuel oilkWh3,409,340,532.302,989,788,958.8314.03%Lubricating oilkWh24,093,849.0927,153,755.46-11.27%Total indirect energyconsumption
kWh1,678,000.001,614,100.043.96%Purchased electricitykWh1,678,000.001,614,100.043.96%
To control fuel consumption and reduce carbon emissions, our shore power usage after ship docking increased in 2023.
Direct energy consumption includes gasoline, diesel, low sulfur fuel oil and lubricating oil.
Indirect energy consumption comes from purchase of electricity.
Zhonggu Logistics, having incorporated climate change indicators into the scope of data collectionand management, regularly discloses relevant data to enhance information transparency. Climatechange indicators during the reporting period are shown in the table below:
Indicators and Objectives
Leading in Low-carbon ShippingLeading in Low-carbon Shipping
Zhonggu Logistics has incorporated the low-carbon concept into the whole process of preliminary planning,business operation and daily work. We have formed a business philosophy of green ships and rooted low-carbongenes from the source. Meanwhile, through e?ective fuel management, we have reduced carbon emissions in theshipping process. Besides, we have fully implemented the green o?ce concept and established the green andlow-carbon corporate culture where everyone participates.
Upholding the business philosophy of green ships, Zhonggu Logistics, on the basis of comprehensively taking intoaccount the resources, energy, environments and attributes of ships, has further optimized the ship types, powersystems, energy devices, etc., improved the capability of the ship industry in software innovation and application,and enhanced the green level of ship operation from the source.
Green Ships
Low-carbon Sailing
?Use the S-BOW for better speed and seakeeping
performanceGreen designof ships
?The latest version of main engine is equipped with a shaft
generator in axle holding type to further reduce fuel oilconsumption;?A number of energy-saving facilities, such as a e?cientpropeller, hub vortex absorbed ?ns, energy-saving pre-swirlducts and ?ap rudders, are adopted to improve the ship'sspeed performance.
Green designof powersystem
?Improve the e?ciency of installing shore power
equipment for existing ships and require ships to prioritizethe use of shore power during berthing at domestic ports toreduce fuel consumption;?Currently, shore power equipment has been installed for 44out of 51 ships owned by Zhonggu Logistics.Green design
of energy
devices
?Monitor and promptly eliminate the phenomena of
leakage and venting of fuel oil, water and gas through the
PMS system to reduce the resulting energy waste.Green designof industrialsoftware
E?ective management of fuel oil as a key energy source for shipping is crucial for the low-carbondevelopment of the shipping industry. Zhonggu Logistics has established the Energy Management Systemfor all management departments and unveiled the Fuel Management Measures, to strictly regulate the fuelprocurement, bunkering, storage and use, achieving closed-loop management in fuel e?ciency improvement.The above measures not only apply to all our self-owned vessels, but also extend to chartered vessels, whichhas comprehensively improved the fuel e?ciency.During the reporting period, on the basis of achieving acceleration of ships, Zhonggu Logistics set clearquantitative targets for the fuel consumption per hundred nautical miles for each ship and designed theimplementation path. As a result, we reduced average fuel consumption of self-owned ships by more than 5%on a YoY basis, with a total fuel saving of over 20,000 tons throughout the year.
Fuel Management
?We have formulated the Fuel Oil Quality Control Management Program (Trial) to strictly control fuelquality from the source. All oil products shall be sampled and monitored by the authority, and tested24 hours before formal use to ensure fuel e?ciency.
Procurement: fuel control
?We have compiled the Management System for Equipping, Calibration, Use and Maintenance ofMeasuring Instruments to standardize the measuring operation and management of tools. Our oilmeasurement personnel boards the vessel to conduct the measurement, preventing the fuel wastecaused by reasons such as fuel storage error or inaccurate measurements.
Bunkering: accurate gauging
?We have formulated many rules and policies such as the Instructions on Ship and EquipmentMaintenance, Instructions on Management of Spare Parts and Materials of Ships and Instructions onShip Fuel Management to re?ne management and maintenance of ship conditions, eliminate fuelwaste caused by evaporating, emitting, dripping or leaking of ship fuel.
Storage: maintenance
?By fully leveraging the network advantages, we have achieved re?ned management through real-time and e?ective monitoring of ships. For example, when a ship of ours cannot directly enter theport due to limitation in berth, we will immediately send a deceleration instruction to the captainthrough the ship monitoring system. Through planning economical speed of navigation, we minimizethe time of ship waiting and anchoring.
Usage: route optimization
Leading in Low-carbon ShippingLeading in Low-carbon Shipping
Actively implementing the concept of green office, Zhonggu Logistics not only has achieved greenrenovation of o?ce facilities, but also has developed multiple regulations and initiatives on energysaving and environmental protection applicable to all employees. In addition, we carried out manyenvironmental activities during the environmental theme day and public welfare volunteer activitiesto guide people to establish green environmental awareness and green culture where everyoneparticipates.During the reporting period, Zhonggu Logistics further promoted green office measures, strivingto make the low-carbon and environmental protection concept rooted in the daily work of everyemployee.
Green O?ce
Savingdomesticwater
?We installedsensor faucetsthat can beautomaticallyturned o? aftera ?xed time, toe?ectively avoidwater waste.
Promotingpaperlesso?ce?We've improvedo?ce e?ciencyand savedresources throughonline approvalprocess.?During thereporting period,we reduced the useof 160 kilogramsof paper on a YoYbasis.
Reducingelectricityusage?We installedvoice-activatedlights to avoidunnecessaryelectricityconsumptioncaused byforgetting to turno? the lights.
Greenbusinesstravel?We encourageemployees toprioritize publictransport meanssuch as high-speed trains,trains, buses andsubways to reducethe impact ofbusiness travel onthe environment.
Regarding environmental compliance as the bottom line and principle of business operations, Zhonggu Logisticsstrictly abides by relevant laws, regulations, and industry standards of business locations, and minimizes theimpact on the environment while ensuring compliant emissions. In addition, we strive to achieve harmoniouscoexistence between economy and ecology by enhancing resource conservation and biodiversity protection.
Ecological Co-construction
Always following the principle of compliant emission, we have optimized internal management systems andmeasures according to external regulatory requirements, to ensure compliant discharge of wastewater, wastegas and waste. Meanwhile, we have comprehensively strengthened environmental education of crew membersto enhance their compliance awareness from the source, which lays a foundation for emission management.
Wastewater ManagementThe wastewater that causes pollution to the ocean during shipping is mainly composed of oily sewage, ballastwater and domestic sewage. In strict accordance with laws and regulations such as Water Pollution PreventionLaw of the People's Republic of China, Marine Environmental Protection Law of the People's Republic of China,Regulations on the Prevention of Marine Environmental Pollution by Ships, Emission Standards of Pollutantsfrom Ships, and International Convention for the Prevention of Pollution from Ships, Zhonggu Logistics hasfollowed the requirements for compliant discharge and disposal of ship wastewater, and established a targetedmanagement mechanism for di?erent types of wastewater, to ensure comprehensive compliance.
Emission Management
Leading in Low-carbon ShippingLeading in Low-carbon Shipping
The total wastewater discharge includes production wastewater and domestic wastewater. The productionwastewater only refers to the wastewater generated during the ship transport that does not meet the dischargeregulations. Any other production wastewater is discharged into the ocean after being disposed of and meetingthe discharge conditions in strict accordance with the relevant national laws and regulations. The reason for thesubstantial increase in the amount of domestic wastewater in 2022 is that the statistical caliber has been adjusted:
the statistical caliber for 2021 was the domestic wastewater that was withdrawn from the shore, while the statisticalcaliber for 2022 was the sum of freshwater installed and freshwater generated onboard.
CategorySubcategoryUnit20232022Changes
Wastewater
Production wastewaterTon2,296.542,453.62-6.40%Domestic wastewaterTon11,858.2013,960.00-15.06%Total amount ofwastewater discharge
Ton14,154.7416,413.62-13.76%Wastewater dischargeintensity by revenue
Ton/million
Chinese Yuan
1.141.16-1.49%
Wastewater discharge conditions during the reporting period are as follows:
Waste Gas ManagementZhonggu Logistics has formulated the Implementation Instructions for Ship Air Pollution Emission Control Areasin China's Sea Areas in strict accordance with Law of the People's Republic of China on the Prevention and Controlof Atmospheric Pollution, the Implementation Plan for Ship Air Pollutant Emission Control Area and other laws,regulations and rules to reduce the impact and pollution of waste gas pollutants (such as sulfur dioxides, nitrogenoxides and particulate matters) generated by fuel combustion on port cities, coastal and riverside areas when shipsare sailing or docking at ports.We continuously improve the e?ect of waste gas management through fuel substitution and process optimization,and regularly review and supervise waste gas emissions from ships. On the basis of ensuring compliant waste gasemissions, we actively evaluate the e?ectiveness of waste gas emission reduction measures.
?Re?ned management:
through process analysis,review and summary,wehave reduced the slag yieldof residues after cookingoily sewage, implementingthe system of accountabilityfor ships that exceed thestandards.?Emission supervision:
For the discharge of oilywastewater, each vessel forforeign trade is equipped withan oil-water separator and a 15PPM monitor. For the purposeof traceability, the ?eet timelyrecords the discharge ofoily wastewater in the OilyWastewater Logbook, andthe maintenance departmentregularly inspects the ship'swastewater control facilitiesonboard.?Optimization andrecti?cation:
The Company actively seeksproblems through interviewson all our self-owned vesselsto check the generation,management and dischargeof oily wastewater from ships,and propose recti?cationmeasures for the problemsfound.
Oily sewagemanagement
?Reasonable planning:
In accordance with theInternational Convention onthe Control and Managementof Ships' Ballast Water andSediments issued by theIMO, Zhonggu Logistics hasdeveloped ballast water-related management plans toensure compliance in terms ofballast water.?Technical upgrade:
All of the Company's currentballast water treatmentsystems adopt the technicalmeans of mechanicaltreatment (?ltration) andphysical treatment (nitrogenasphyxiation method) tocontinuously improve thee?ciency of ballast watertreatment.?Certi?cation guarantee:
All ships of the Companyhave complied with the D-2standard (Biological andHygienic Standards for ShipBallast Water Treatment)since 2017, and all ship ballastwater treatment systems arein compliance with USCGcerti?cation.
Ballast watermanagement
?Storage compliance:
Our vessels are equipped withdomestic wastewater storagetanks and the o?-board directsea valve is cut o? to eliminatenon-compliant storage.?E?cient disposal:
All domestic wastewatermust be treated by domesticwastewater treatmentdevices. We regularly cultivatemicroorganisms and applydisinfectant tablets to reducethe pollutants in domesticsewage.?Emission control:
The domestic wastewater isdischarged into the sea 12nautical miles away after beingpulverized in strict accordancewith the discharge raterequirements. The quali?eddomestic wastewater afterbiochemical treatment maybe pulverized and dischargedto places 3 nautical mileso?shore according to thedischarge rate. In waters wheredischarge is not allowed, suchas the inland sea of China, anywastewater is taken back toshore for disposal.
Domestic sewagemanagement
Fuel substitution
Process optimizationWe use low sulfur fuel oilto reduce emissions ofatmospheric pollutants suchas sulfur dioxide.
We regularly maintain the oil separators
and oil head exhaust valves to ensuretheir full combustion and reduce harmful
waste gas emissions.
Leading in Low-carbon ShippingLeading in Low-carbon Shipping
Harmless waste includes ship solid waste returned to the shore and domestic waste in o?ces.
Hazardous waste includes oily sludge and batteries, and the batteries were counted for the ?rst time in 2023.
Our waste gas emissions during the reporting period are as follows:
Waste Disposal Measures of Zhonggu Logistics
CategorySubcategoryUnit20232022Changes
Wastegas
Nitrogen oxideTon25,517.0717,678.5044.34%Sulfur oxidesTon3,6902,46649.64%Particulate matterTon631.26422.0049.59%Total waste gasemissions
Ton43,115.0620,567.04109.63%Waste gas emissionintensity by revenue
Ton/million
Chinese Yuan
3.471.45139.31%Waste Management
Zhonggu Logistics has formulated the Instructions for Ship Pollution Prevention and Management, the PollutionPrevention Code, the Pollutant Identi?cation Regulations and other systems in strict accordance with theEnvironmental Protection Law of the People's Republic of China, the Energy Conservation Law of the People'sRepublic of China, the Marine Environmental Protection Law of the People's Republic of China, the Law of thePeople's Republic of China on the Prevention and Control of Environment Pollution Caused by Solid Wastes andother laws and regulations, to improve the e?ectiveness of management and minimize the pollution of wastes tothe marine environment.For all our ships, we have formulated the Ship Garbage Management Plan in accordance with the InternationalConvention for the Prevention of Pollution from Ships, which provides strict regulations on the disposal anddischarge of all wastes generated, thereby standardizing the waste classi?cation, storage, and disposal afterberthing. In addition, we have established the waste tracking and management mechanism, which clari?es thewaste management measures of relevant personnel in the forms of lists and archives, to facilitate any form ofsupervision and traceability.Domestic waste, cargo related waste and maintenance waste
Waste containing hazardous or dangerous substances (electronic waste, expired medicines, etc.) &plastic waste including waste mixed with plastic
?Sorted and stored centrally, and those meeting the speci?ed conditions may be burned inan incinerator during voyages or discharged after processing and treatment in accordance withregulations.?Apply in advance and submit it to the health and quarantine department for processing afterapproval.
CategorySubcategoryUnit20232022Changes
Waste
Total amount ofharmless waste
Ton675.20706.40-4.42%Harmless wasteemission intensity
Ton/million
Chinese Yuan
0.050.058.56%Total amount ofhazardous waste
Ton1,551.001,359.0014.13%Hazardous wasteemission intensity
Ton/million
Chinese Yuan
0.12
0.1024.69%
Our waste emissions during the reporting period are as follows:
Zhonggu Logistics achieves ecological co-construction mainly through resource conservation, andwater resources are particularly important for our business operations. In order to realize e?cientwater resource utilization, we have formulated multiple institutional documents including the Planfor Water Resource Management of Ships and the Implementation Plan for Reducing FreshwaterConsumption of Domestic Trade Ships, to control the use of water resources for ships. Meanwhile, westrictly prevent and control the waste of water resources caused by equipment leakage and venting.During the reporting period, the total amount of freshwater ?lled for 16 domestic trade ships subjectto water resource management assessment was reduced by 3,709 tons or 11% on a YoY basis.
Resource Management
?Implementing a cross-secctionalcomparasion among ships in thewater consumption, we've identi?edthe measures for reducing freshwateruse and taken such measures in the?eet. During the reporting period,we usually used river water to cleanthe decks of our ships to reduce thefreshwater consumption.
Less freshwater
consumption
?Each vessel of Zhonggu Logisticsis equipped with a freshwatergenerator during internationalvoyages, the distilled water isstored in a freshwater tank for dailylife, engine-room equipment andcooking. During the reporting period,the seawater desalination amountof our international vessels was39,037.2 tons.
Seawaterdesalination
Deeply Exploring Customer ValueDeeply Exploring Customer Value
Shouldering the corporate mission of"Changing China's Logistics with Containers", ZhongguLogistics actively responds to market changes and new situations through the standardizedoperational management mechanism, actively launch diversi?ed routes, continuouslyimprove service quality, and optimize customer experience to provide green, e?cient, safe,and convenient logistics services to clients.
Creating Excellent Services
Zhonggu Logistics has been able to provide multimodal logistics services by waterand land transport. Our business covers more than 100 ports in dozens of provincesand cities in China. We have more than 200 o?ces and branches in China, operatemore than 100 container ships, and enjoy dozens of domestic trade routes includingboutique routes and self-operated international routes.
Multiple Routes
Multimodal Business Model
Deeply ExploringCustomer Value
The Company has been o?ering clients from industrial and agriculturalcommerce safe, e?cient, green and convenient whole-process multimodaltransport services, powered by standard containers and big data. We havemaintained rapid and healthy development over the years, championing thecorporate mission of"Changing China's Logistics with Containers", the corevalues of"Loyalty, Sincerity, Diligence"and the corporate vision of"Leadingthe development of China's logistics, serving the society, and empoweringemployees". Continuously improving service quality, we always empowerbusiness development with technological innovation, and create long-termvalue for our clients.
Deeply Exploring Customer ValueDeeply Exploring Customer Value
Domestic Trade Routes
The domestic trade route network of Zhonggu Logistics has covered China's coastalareas and river basins. At present, we have opened more than 60 Chinese coastalroutes, more than 30 Yangtze River routes and more than 160 Pearl River routes. TheCompany's shipping network covers 25 major coastal ports and more than 50 inlandports in China. Through the organic combination of ports, routes, and intermodalroutes, we have established a comprehensive and multi-level multimodal integratedlogistics system, focusing on building the sea transport and logistics mega-systemformed by connecting the Yangtze River routes, Pearl River routes and China's coastalroutes. To meet customers' needs for timeliness and stability of logistics, the Companyhas opened high-quality routes connecting major coastal ports.As of the end of the reporting period, Zhonggu Logistics had more than 105 ships with aload capacity of approximately 3.51 million tons and an annual container freight volumeof Approx.15 million tons.
International Routes
In active response to the national call of "take the domestic cycle as the mainstay and let the domestic andinternational cycles promote each other", Zhonggu Logistics takes advantage of the existing domestic tradenetwork to continuously deepen and expand near-ocean routes, with a focus on dual circulation. During thereporting period, Zhonggu Logistics rented out some ships in the form of time charter, involving ?ve overseascountries and 12 domestic and international ports. We have achieved integrated the industry chains of transportfor domestic and foreign trade and consolidated our competitive advantages in the ?eld of foreign trade.
New Mode of Internal and External Cycles
?Compared with theoriginal CCA model forforeign trade barge,the WGO (water gate)model has lower costand faster timeliness,gets rid of the shacklesof CCA on customers,reduces the timelinessand cost of the wholeprocess, and providescustomers with morechoices. In this way,it forms the core ofcompetition for theforeign trade routes ofZhonggu Logistics.
Create competitiveadvantages, providesincere services
?We mobilize domestictrade barge resources,integrate and optimizethe loading of Wuzhou-Nansha barge route,form a win-winsituation of timelinessand bene?t, and createhigh quality servicesfor Zhonggu's foreigntrade.
Promote internationalroutes with domestictrade routes based on the
platform
?The whole processis closely connected,and we providecustomers with one-to-one guide, allowingthem to have time-saving, trouble-free andworry-free experience,to comprehensivelyimprove their serviceexperience.
Provide a guaranteewith the supporting
service system
?Jumping out ofthe geographicallimitations of Nansha,we extend and expandthe radiation rangeof foreign trade,and create a goodreputation and brandreputation for Zhongguby integrating domestictrade port, container,and barge resources,combined withdomestic tradeexperience.
Build an excellentreputation and strivefor excellence
Deeply Exploring Customer ValueDeeply Exploring Customer Value
Zhonggu Logistics, always being customer-centric andvaluing service quality, has continuously optimized thecontainer management system to ensure the delivery ofshipping services beyond expectations to clients.
Quality Assurance
Container Management Architecture
PortsDispatching group, repairing group,tracking group and rental group
Dispatching group, repairing group,tracking group and rental groupRegions
HQ
Container Management ArchitectureWe have established a container managementarchitecture with clear responsibilities, builta two-level ?at management system withinthe container management department,and ensured the adaptation of containersand cargo through precise classi?cation andmanagement of containers.
Container Management System
Zhonggu Logistics has established a sound container management system, improvedquality through both container management and path management, and ensured thesafety and e?ectiveness of all transport links.
?On the basis of examining the whole life cycleof customer service, analyzing each scenarioof transportation, and relying on platformtechnology, Zhonggu Logistics has establishedthe container management system and afull-process management system from orderplacement to tracking, query, modi?cation andstatement, which further improves the servicequality.
Container Management
System Management
?To improve the timeliness of transportation,we continue to strengthen the managementof transportation routes, save the Company'soperating costs while improving the servicequality, and form a good momentum ofsustainable development. In terms oftransportation route construction, we conducttargeted management of conventional andchanged routes. In terms of transit routeconstruction, we aim to guide ship stowageand transit ?ow to speed up transit, achievethe balance of import and export, and increasethe bene?ts of route operation.
Route Management
Zhonggu Logistics always pursuing customer satisfaction, continuously optimizes services for clients. We haveestablished and improved the customer satisfaction survey mechanism, inviting customers to participate incustomer satisfaction surveys through channels such as the Zhonggu e-commerce platform, WeChat o?cialaccount, and circle of friends. In addition, we continuously increase the coverage of customer satisfactionsurveys and encourage customers to share their true feedback through measures such as issuing coupons withthe face value of RMB 100, to improve the service level. Moreover, we pay attention to customer privacy, and donot claim customers' personal information in the questionnaire survey process. According to the survey results,we will follow up customers with low satisfaction at us one by one, while optimizing and tracking customerfeedback based on recording and reviewing the reasons in detail.During the reporting period, the overall customer satisfaction rate was 97%, a year-on-year increase of 5%.
To improve the agility and pertinence of communication with customers, we have established an open andtransparent complaint reporting mechanism and formulated the Operation Manual for Customer ComplaintHandling Process and Management Measures to help customers solve problems e?ciently through thestandardized complaint handling process. During the reporting period, the Company received a total of 170complaints about products and services, a YoY increase of 16.44%, and the complaint handling rate was 100%.
Customer Experience
Attaching great importance to customer feedback and opinions, Zhonggu Logistics has organizedspecial optimization according to customer needs. During the reporting period, we helped analuminum product customer always plagued by serious cargo damage in the transport process.Speci?cally, referring to existing steel coil packaging solutions, we customized new pallets for thecustomer after rounds of communication with the pallet manufacturers. Finally, we achieved stabletransport of the customer's goods with the pallets produced, helping the customer reduce thecargo damage by 60%.
Reviewing and Optimizing
Customer Feedback
Complaint Handling Process
Complaint
receiving
Recordanalysis
Complaintregistration
Preliminaryinvestigation
Responsibilityassignment
Detailedinvestigation
Problem
solving
Customerfeedback
Deeply Exploring Customer ValueDeeply Exploring Customer Value
Zhonggu Logistics aiming to enhance the capability of business collaboration and service, actively promotesdigital business and demand-driven digital practices, and exploring the intelligent and efficient digital shippingsystem. To improve customer experience, we have established a complete digital platform management system,and independently developed six major systems: Zhonggu e-commerce platform, bill switching system, tuggingsystem, ship operation system, cargo tracking system for domestic trade, and cargo tracking system for foreign trade.Together, they provide customers with logistics information services throughout the process.
Digital Platform Management
Digitization is vital for the shipping industry to achieve high-quality development, enhance the resource allocationcapability, seize the important strategic opportunity period of accelerated changes unseen in a century, andachieve new momentum of business development. Zhonggu Logistices always pursuing "?rst-class company, ?rst-class talent, ?rst-class performance, and ?rst-class return", we committed to promoting the digital transformationof the shipping industry and serving the national strategy of becoming a maritime power, and promoting thedevelopment of the Maritime Silk Road.
Digital ShippingTransformation
Internet shipping
Digitalization
Platformization
Mobility
Three-dimensionalization
E-commerceplatformCargo trackingsystem forforeign trade
Bill switchingsystem
Digital platform
Cargo trackingsystem fordomestic trade
Tugging system
Ship operationsystem
Digital Strategic Goals
In order to further enhance theinternal resource allocationcapability to achieve moretransparent, e?cient, green andsafe business development,Zhonggu Logistics has clari?ed thedevelopment goals of the logisticssystem, namely "digitalization,three-dimensionalization,platformization, and mobility",and we are focusing ontechnological innovation, furtherstrengthened research anddevelopment and achievementtransformation. We adhere to ourdevelopment goals, continuouslyoptimize the management ofdigital platforms, actively carryout technological innovation,and provide solid guaranteesfor customers through excellentsafety management.
Deeply Exploring Customer ValueDeeply Exploring Customer Value
As one of the ?rst Chinese enterprises that have introduced the Internet into shipping, Zhonggu Logistics insists onthe research, development and application of technology while making full use of technological advantages. Relyingon existing technologies, we have enhanced research and development of electronic data software, RPA technology,AI recognition and other intelligent innovation technologies to enhance our business management capability.
Digital Technology Innovation
Optimization of Cargo-passenger Connection Mode?We have achieved electronic data interchange (EDI)integration through the EDI software for the ports and yards.?The Company has comprehensively realized e-commercebooking without written authorization. The electronic bookingrate reaches up to 100%.
Electronic data
software
?The B2B automatic data docking empowers theproduction of enterprises greatly.?Through faster and more accurate processing ofcustomers’ business documents, we provide customerswith more e?cient and reliable services.
Robotic processautomation (RPA)
?AI photo recognition technology is used to realize thefast approval of container repair quotation, repair review,automatic account reconciliation, etc., which ensures dataaccuracy while improving e?ciency.AI recognition
We continue to accelerate the information construction, optimize passenger and cargo docking and terminal yardservices through the ERP system (through which, customers can independently obtain the needed informationand query the information of placing orders and releasing goods at any time), and comprehensively improve theservice quality.
Personalized system development
Zhonggu Logistics has developed a personalized direct customer service system called"YoukeSystem"for major customers, to optimize the booking and transport process through high-qualityonline service support, management, and data support. Through the Youke System providingcomplete online transport service support, we can complete the tasks of accepting orders, bookingservices of sea transport and land transport, timely tracking and viewing the transport progress,and making statistical analysis of maintenance and transport data. The Youke System integratesthird-party systems such as WeChat and DingTalk, thus facilitating mobile o?ce.As of the end of the reporting period, more than 360,000 waybills were cumulatively completedthrough the Youke System.
Deeply Exploring Customer ValueDeeply Exploring Customer Value
Optimization of the terminal yard service system and cargo tracking technology
?We achieve informationconnection with cooperativeterminals and yards through EDI、EIR、 EDO and other informationto ensure that there are traces ofcontainer entry and exit, and thereis evidence to follow when pickingup and returning containers;?We master big data andsystematically analyze it toe?ciently assist businesspersonnel in business processingand business judgment; and?We unify standard dockingdocuments to reduce the risk ofpersonnel changes.
Informationtechnology
?We evaluate and rank the yardsand wharfs through systematicdata analysis of operation time,and have established an e?ectiveincentive mechanism to improvethe service level. In addition, weconvert its service advantages intoour own.
Performanceappraisal
?The closed-loop managementof enterprise business is realizedthrough system management,?which reduces manualintervention, and ensuresaccuracy of business data and?nancial data.
Systemmanagement
Add the function of refreshing
Optimize data processing?We have added the function of refreshing cached data in real time for delivery, dispatching,transshipment,and container transfer, weakened the large-scale refreshing cache for un?nishedbills of lading, and improved data timeliness and accuracy.?We have launched the ES log viewing platform, tested and improved the splicing method ofbackground parameters, improved the quality of customerservice and reduced communicationcosts.
Zhonggu Logistics strictly complying with the relevant laws and regulations of business locations, and establishedthe Information Security Management System of Shanghai Zhonggu Logistics Co., Ltd. to ensure data security.During the reporting period, Zhonggu Logistics deepened cooperation with third-party service providers, andensured data security through security information disclosure, regular case analysis, regular business assetsorting and vulnerability scanning, ensuring the security and controllability of online external services.
Data Security Management
Website and application security assessment
?Identify all sorts of Internet security problems through various methods based on thedevelopment cycle of the application, to ensure software security at all times.
Website and application security reinforcement
?Reinforce the rationality of the application code and make sure that the application is deployedreasonably to enhance security.
Filtering of external threats?Deploy devices such as the ?rewall and IPS to monitor, ?lter and record malicious externalaccess.
Status monitoring?Continuously check the current status of the protected application page and monitor the websiteaccess log directory to determine whether the page is under attack.
Emergency response
?Make plans for security incidents with high probability in advance and test the plans in drills;
strive to report and handle security incidents in the most e?cient and reasonable way, and makesure to summarize the lessons learned.
Data security management?Keep daily data backup, including daily application, database, document, etc.
Establish a backup mechanism to ensure that backup data is independent of the production ando?ce environment.
Data Security Guarantee Mechanism
Deeply Exploring Customer ValueDeeply Exploring Customer Value
A stable and high-quality partnership is an important cornerstone for steady operation of a company. Carryingout supply chain management work in accordance with relevant laws and regulations, Zhonggu Logistics hasincorporated compliance and sustainability requirements into the entire process of bidding, project approval,supplier admission and cooperation.
In addition, we actively empower our suppliers, helping them to improve delivery quality andsustainability performance.
Strengthening SupplyChain Management
?We ensure that both partiesto commercial contracts carryout their work in a compliant,upright and honest mannerby constantly improving theprocurement system, formulatingand implementing the ZhongguLogistics Supplier ManagementMeasures, the Basic Rules forBidding and Procurement, the Anti-Commercial Bribery Agreementand other rules and regulations,and standardizing thebidding process.
Bidding and project
approval
?Continuously improving thesupplier credit managementmeasures, we review thesupplier's credit information inadvance before cooperation,to reduce the risk of selectingimproper suppliers, so as tofurther strengthen the ex-anterisk control of business.
Supplier admission
?We comprehensively evaluatesupplier performance throughvarious methods, and tailorrelevant training courses forsuppliers according to monthlyevaluation results and currentoperational conditions, tofurther standardize the businessbehaviors of suppliers.
Suppliercooperation
Supplier Delivery Capability Trainings and SymposiumsDuring the reporting period, Zhonggu Logisticsopened various training courses and held region-level o?ine symposiums for more than 1,000suppliers to solve speci?c di?culties encounteredby suppliers in the cooperation process so as toenhance their delivery capability. On the basisof gaining an in-depth understanding of thetransport capacity planning of each supplier, weprovided speci?c solutions to the transport relatedproblems of suppliers, to better respond to thebusiness surge from "shipping loose cargo viacontainers" and small high containers promotionand meet the further requirements for suppliers.
Site of Regional Symposium for Suppliers
Low-carbon Ful?llment Capability Planning of Suppliers
During the reporting period, Zhonggu Logistics launched the trailer supplier management system,and further implemented the full-in and full-out supplier ?eet strategy through integration anddeployment of information resources, to maximize the overall vehicle transport e?ciency. Whileimproving operational e?ciency, we helped our suppliers to improve low-carbon performance.In active response to the national electronic invoice policy, we promote the electronic invoicesamong our suppliers during cooperation.As of the end of the reporting period, our terminal suppliers and barge trailer suppliers usedelectronic invoices by 40% and 70% respectively.
Creating a Harmonious CommunityCreating a Harmonious Community
We strictly follow the employment related laws and regulations applicable to businesslocations, including the Labor Law of the People's Republic of China, the Labor ContractLaw of the People's Republic of China, the Law of the People's Republic of China on theProtection of Minors, and the Provisions on the Prohibition of Using Child Labor, etc.We uphold the fair, impartial and non-discriminatory employment policies, and legalemployment principles, and strictly prohibit the employment of child labor or forcedlabor. During the reporting period, there were no violations of laws and regulationsrelated to child labor and forced labor.Zhonggu Logistics has formulated the Employee Handbook and the Recruitment Policyto ensure standardization and transparency of the recruitment process. We have openedvarious channels of recruitment on site, online, and by mailbox and WeChat officialaccount to attract and select outstanding talents. Following the principle of diversityand fairness in recruitment, we make constant innovation in recruitment means,including o?-campus experimental teaching bases, two-way campus recruitment, andschool-enterprise cooperation.
Diversity and Equality
Creating aHarmoniousCommunityWe continuously improving the recruitment and human resource management system,enhancing quality training of employees, and optimizing the employee compensationmechanisms and career development paths, strive to promote employees'specializedgrowth, create an equal, respectful, diverse, and inclusive work environment for everyemployee, and ultimately achieve growth of both employees and the Company.
O?-campus Experimental Teaching BaseIn 2023, Zhonggu Logistics and TianjinUniversity of Science and Technology enteredinto a contract on jointly building an industry-university research cooperation base as theo?-campus experimental teaching base.Speci?cally, Tianjin University of Science andTechnology utilizes its advantageous resourcesto support Zhonggu Logistics in scienti?cresearch, technology development andtraining. In return, Zhonggu Logistics providesTianjin University of Science and Technologywith opportunities, resources and venuesfor student training and internship, teachinginnovation and research. The two sides jointlycultivate high-quality talents for the shippingindustry.
Unveiling ceremony of o?-campusexperimental teaching base of TianjinUniversity of Science and Technology
Creating a Harmonious CommunityCreating a Harmonious Community
As of the end of thereporting period, ZhongguLogistics had a total of 1,471employees, all of whomwere fulltime employees.Our sta? composition is asfollows:
We value the rights and benefits of every employee, making efforts to provide them with favorableworking conditions and development opportunities to reduce employee turnover rate. During thereporting period, the overall turnover rate of employees was 15.52%. We fully respect the personalchoices of employees and will handle the resignation procedures for them in accordance with the lawwhen they apply for resignation.
Total number ofemployees byrank
Total number ofemployees byage
Top-level management
Mid-level management
50 and above
Total number ofemployees bygender
Female
Male1,117
Rank & ?le1,295
30 andbelow
31-50
Indicator20232022ChangesTotal employee turnover rate15.52%13.61%1.91%Employeeturnover rate bygender
Male14.20%11.45%2.75%Female19.11%19.45%-0.34%Employeeturnover rate byage
30 and below16.72%14.45%2.27%31-5013.43%9.42%4.01%Above 5018.75%6.76%11.99%
Two-way Campus Recruitment
In 2023, Zhonggu Logistics organized campuspresentations and other activities in majorcoastal universities and organized variousregions to carry out a series of recruitmentactivities for western universities, includingcampus recruitment presentations, o?inetwo-way recruitment, and symposiums. Weactively cooperated with multiple universitiessuch as Chang'an University, ShaanxiUniversity of Science and Technology, andXi'an Shiyou University.Site of Campus Presentation
School-enterprise Cooperation
Valuing the school-enterprise cooperation,Zhonggu Logistics warmly welcomed visitingteams from multiple universities, heldsymposiums, and organized multiple visitingactivities. Through these activities, we haveestablished a close partnership with someuniversities, promoting communication andinteraction between both parties. Throughschool-enterprise cooperation, we can attractmore outstanding talents and cultivate moretalents, so as to promote the development ofthe shipping industry.
Visit and Exchange at Dalian Maritime
University
Creating a Harmonious CommunityCreating a Harmonious Community
Zhonggu Logistics always sticking to the people-oriented concept, has and continuously improved the systemof new employee induction training and in-service employee promotion training. We valuing employeetraining and development, actively promote employee growth, to lay a solid talent foundation for sustainabledevelopment.During the reporting period, Zhonggu Logistics further improved the Training Management Measures,and organized more standardized and systematic training, improving the quality and effect of training.We Continuously optimizing the new employee induction training system, formulated and released newemployee training regulations to facilitate unified and standardized guidance of various departments.Meanwhile, we require a greater emphasis on the combination of theory and practice. Also, Zhonggu Logisticsdeveloped corresponding training assessment plans for various departments and organized assessmentwork. We mainly assessed the performance of departments in internal training, new employee training andexternal training. We motivate all departments to pay more attention to employee training and improve thequality and e?ect of training.
We attaching great importance to employee training and development, and tailored training programsand plans for employees at different levels. We organize such trainings to enhance the professional skills,management abilities and teamwork awareness of employees, to reinforce our overall competitiveness.Through the induction training, we hope to help new employees to be quickly integrated into the corporateculture and become familiar with the work environment. We train the emaployees who arein-service andaims to help them continuously improve themselves and achieve career growth. In addition, a combinationof o?ine training and online training enables employees to ?exibly choose according to their own needs andschedules, thus maximizing the e?ect of training.
Talent Development
Establish the trainingevaluation mechanism
Optimize the new employeeinduction training system
Improve the Training
Management Measures
Talent Management and Cultivation System
New Employee Induction Training
Concentrated EMBA Training for Cadre Representatives
Zhonggu Logistics has innovatively optimizedthe 2023 campus recruitment training planand extended the training duration fornew employees to three months, wherethe training duration covers the entireprobation period of new employees. Throughpost guidance, post practice and outdoorexperiential learning, we aim to enhancethe adaptability and teamwork ability ofnew employees, improve their skills andknowledge level, and enhance their sense ofbelonging, so that they can take the initiativeto integrate into the company culture.
During the reporting period, Zhonggu Logisticsfurther organized the specialized classroomtraining for senior executives, promoted thedevelopment, sharing, learning and exchangeof excellent internal courses, and contributed toemployees' career development by utilizing thehigh-quality platform resources of the TalentDevelopment Institute. In November 2023,a total of 12 cadre representatives receiveda 3-day external training of "ConcentratedEMBA". This training covered key links ofenterprise management such as strategicdesign, value creation and product strategy,which e?ectively enhanced the managers'business thinking, comprehensive quality, andcognitive competence, and broadened theirhorizon. In this way, more profound and broadsupport is available for our development anddecision-making.
New Employee Induction Training and
Welcome Ceremony
Concentrated EMBA Learning Team
In addition to the sound training system, training assessment plans have been made for variousdepartments. According to results of training assessment and appraisal through comparison, wecommend and reward outstanding training departments and excellent internal training courses.We mainly evaluate the performance of relevant departments in internal training, new employeetraining and external training. During the reporting period, we screened out a total of six excellentinternal training courses across the Group in 2023, which improved training quality and stimulatedthe development of internal training resources. We continuously optimize training input and resourceallocation, to vigorously support the company development and employee growth.
Linking performance with salaryLinking performance evaluation results with salary incentives, Zhonggu Logistics actively exploresand improves the market-oriented salary incentive mechanism, to stimulate employees’ initiativeand enthusiasm and unleash their potential.
Multi-dimensional performance evaluation system
For di?erent types of employees in di?erent positions, Zhonggu Logistics adopts a ?exible salarysystem based on the performance of employees in multiple aspects. The employee’s salaryis variable, depending on his/her post value, personal performance and also completion ofperformance goals of business in charge.
Long-term incentive plan
Through the long-term incentive plan,Zhonggu Shipping Group Co., Ltd. rewards the employeeshaving made contributions to corporate development. In late October 2023, a dividend of RMB 1.42/share was issued to all partners for the third time according to the ?rst long-term incentive plan.
Creating a Harmonious CommunityCreating a Harmonious Community
The situation of training for employees during the reporting period is as follows:
IndicatorUnit20232022ChangesTotal training input RMB10,0002902688%Total number of traineesPerson times22,32818,54517%Average number of hours of training peremployee
Hour44.2840.2810%Average traininghours completed peremployee by gender
MaleHour44.5040.0011%FemaleHour43.6240.986%
Average traininghours completed peremployee by rank
Top-levelmanagement
Hour48.0046.004%Mid-levelmanagement
Hour46.0045.002%Rank & ?leHour43.9639.6711%
Zhonggu Logistics actively caring for employees, and committed to increasing employees'welfare bene?ts,enhancing interaction and communication between employees and the Company, establishing, and improvingthe security mechanism to enhance employees'sense of belonging and happiness, and satisfaction through aseries of diverse recreational and sports activities.
Caring for Employees
We always committed to optimizing the internal salary and welfare system, to ensure that employees enjoyfair and competitive treatment. In light of the market salary level, Zhonggu Logistics has established thecompensation system mainly based on employees'competence and performance, which not only stimulatesemployee'enthusiasm and creativity, but also attracts and retains a large number of outstanding talents.Speci?cally, we have taken the following measures:
Improving Compensation Mechanism
Creating a Harmonious CommunityCreating a Harmonious Community
Zhonggu Logistics is always ready to help employees to resolve their difficulties in production and life. Inaddition, we have set up the Zhonggu Care Fund to help the employees and their families in need. Adheringto the tenet that the Care Fund is "from the people and for the people", we aim to pass on the love to everyemployee and their families in need of help. As of the reporting period, we, through the Zhonggu Care Fund,donated a total of RMB 53,000 to 46 employees. The establishment and improvement of the Zhonggu CareFund have enhanced the cohesion and centripetal force of the Company, laying a solid foundation for creatinga sound corporate culture and enhancing employee loyalty.
Mutual Assistance Between Employees
We always put the protection of employees' rights and interests at the core and are committed to enhancingteam cohesion and employee happiness through a series of diverse recreational and sports activities.During the reporting period, Zhonggu Logistics held singing competitions and value story collection activitiesto celebrate the Company's 20th anniversary of founding and carried out a variety of activities around majorfestivals such as Spring Festival, Women's Day and Thanksgiving Day, re?ecting the Company's deep care foremployees. We regularly organize sports activities such as football matches, basketball matches and publichiking, to help our employees to relax and exercise and get closer to each other in the daily work process.
Enriching Recreational and Sports Activities
A Home Letter from Zhonggu Shipping Group in 2023During the reporting period, Zhonggu Logisticscontinued to promote the brand of home letters.We are committed to establishing a model ofnormalized communication between top-levelmanagement and employees, and a platformof one-on-one emotional exchange betweenemployees and the Chairman. We actively conveyand carry forward the Company's cultural concepts,having made a collection of excellent home letters.
27 subsidiesfor marriage
10 subsidiesfor maternity
Five subsidiesfor illness
Four subsidiesfor the death of
relatives
Donation Through the Zhonggu Care Fund in 2023
Role Models and Typical Stories of Cultural Values for the 20th Anniversary of FoundingTo celebrate the 20th anniversary of the foundingof Zhonggu Logistics, we specially held an eventof selecting role models and collecting typicalstories of cultural values. This initiative aimsto deeply explore and inherit the essence ofZhonggu's corporate culture, vividly showing thecore values by sharing true touching stories ofemployees. More than 130 stories of values werecollected, among which nearly 40 were includedin the manual of values stories, thus greatlyenriching the connotation and signi?cance of themanual. Behind these stories are both memoriesand expectations, which will inspire generationsof Zhonggu people to forge ahead to jointly createa more brilliant future.
Zhonggu Logistics has established a two-way feedback mechanism to facilitate communication with employees.During the reporting period, we established an employee performance feedback system. Through the system, theCompany can disclose work goals and evaluation criteria to employees, while employees can learn about theirwork performance and receive guidance for improvement and growth, according to results of regular performanceevaluation and feedback by their line managers. This bidirectional performance feedback system enhancescommunication between employees and the management and helps employees to improve work e?ciency andachieve long-term personal development.Zhonggu Logistics regularly organizes employee satisfaction surveys. During the reporting period, we organizedemployee satisfaction surveys in the HQ and various regions. Survey items covered the salary, performance,training, development, and promotion of employees. A total of 991 employees participated in the survey, with aparticipation rate of more than 83%. The survey results show that the overall employee satisfaction score exceeds80 points, which is signi?cantly higher than that last year, which is attributed to the continuous improvement ofthe Company's management level, thus enhancing employees'satisfaction and happiness year by year.
Emphasize Communication with Employees
Creating a Harmonious CommunityCreating a Harmonious Community
A Thanksgiving Event Themed by "Inheriting for 20 Years, Striving for Better Future"To celebrate the 20th anniversary of thefounding of Zhonggu Logistics, to carry forwardcorporate culture, and to enhance the cohesionand centripetal force of all employees, theHQ held a Thanksgiving event themed by"Inheriting for 20 Years, Striving for BetterFuture". By extending gratitude to the Company,customers and themselves, all participantsgained a deeper understanding of thedi?culties and hardships Zhonggu encounteredin the development process and understood theexpectations of the older generation of Zhonggupeople for new employees.
Site of the Thanksgiving Event Themed by"Inheriting for 20 Years, Striving for Better
Future"
Event of 2023 Women's DayNew Year's Eve Dinner
CICC Wealth Management- Zhonggu Logistics
Basketball Friendship Match
Public Hiking themed by"Keeping OriginalIntention for a Better Future"to celebrate the 20th
anniversary of founding
We attach great importance to the health and safety ofemployees, strictly following laws and regulations suchas the Safety Production Law of the People's Republicof China and the Law of the People's Republic of Chinaon the Prevention and Control of Occupational Diseases.By improving internal safety management rules andoccupational health protection mechanism, we hopeto ensure all employees can work in a safe and healthyenvironment. In order to comprehensively consolidate thedefense line of health and safety, we successfully completedthe annual review and certi?cation of the occupationalsafety and health management system during the reportingperiod.Zhonggu Logistics always puts the safety and health of employees in the ?rst place. We actively providediversi?ed safety and health trainings, to enhance the awareness and ability of employees in safetyprevention, and to ensure that they can pro?ciently master safety operating procedures and emergencyresponse skills. In addition, we actively carry out emergency drills to prevent and control potentialoccupational health and safety risks.
Health andSafety
Occupational Safety and HealthManagement System Certi?cate
Emergency Fire Drill in Winter
In November 2023, all members of Zhonggu Logistics HQ actively participated in theemergency ?re drill in winter. This drill aimed to raise the ?re safety awareness of allemployees and improve their ability to deal with sudden ?res, to ensure the safety of theirlives and property. Through the drill, the employees became familiar with the use of ?reextinguishers, mastered the skills of emergency response and evacuation in the event of any?re, and learned to evacuate personnel and handle property in an orderly manner. This notonly enhanced the self-protection ability of employees, but also improved the overall ?resafety level of the Company.
Fire Drill of Zhonggu Logistics
Originatingfrom Kindness
Creating a Harmonious CommunityCreating a Harmonious Community
Since the occupational health and safety mechanism for employees was improved continuously, there was nowork-related death in Zhonggu Logistics during the reporting period.
Unit202320222021ChangesNumber of work-relateddeaths in the past threeyears
Person 000Days of work lost due tooccupational injuries
Day012102Days of work lost due tooccupational injuries permillion Chinese Yuan
Hour00.00080.08Work injury rate%00.070.14Number of work-relatedinjuries
Person012Number of work-relatedaccidents
No.012
While pursuing self-development, Zhonggu Logistics extensively participates in public welfare undertakings, andactively feeds back the society in a responsible manner. The Company continues to fully exert its strength as aleading enterprise in the container logistics services for domestic trade, playing a leading role in public welfareundertakings.During the reporting period, Zhonggu Logistics donated a total of 0.2 million Yuan, while our employees providedvoluntary services for about 12,000 hours. Each employee contributed about 8 hours of voluntary services Thisinitiative not only reflects Zhonggu Logistics' concern for society, but also demonstrates the Company's positivecontributions in ful?lling social responsibilities.Looking back at the path of public welfare that Zhonggu Logistics has taken, let goodwill return to its essence ofexpression, and convey meager warmth through actions.
Public Welfare Undertakings
In 2023, Zhonggu Logistics carried out a public welfare activitythemed by "Learning from Lei Feng", and expressed public welfarecondolences to nearby nursing homes, welfare homes and otherplaces many times. All these are aiming to bring warmth to societywhile enabling employees to realize their own value.
To celebrate the 20th World Blood Donor Day, various regions ofZhonggu Logistics organized blood donation activities in 2023,bringing love and blessing to society. Furthermore, public welfarevolunteers of Zhonggu Logistics distributed promotional materials topassersby, to mobilize more people to donate blood.
Learning from Lei Feng
Donating Blood
Warmth inGood WordsMotivated byKind Intentions
PromotingBene?cence
In May 2023, Zhonggu Logistics, together with New Binhai VolunteerAssociation, donated extracurricular books to primary schoolstudents in mountainous areas and won the honorary title of "CaringEnterprises".
In June 2023, Zhonggu Logistics, together with the public welfareplatform of Alipay, participated in the team building activity ofhiking (23.66 km), donating energy generated therefrom. In July, weorganized an internal charity sale of idle o?ce supplies to maximizetheir use value.
Creating a Harmonious CommunityCreating a Harmonious Community
In October 2023, the Company, in conjunction with Sunshinetree,held a public lecture on oral health. In November, the Company, incooperation with the Institute of Traditional Chinese Medicine HealthIndustry, carried out an activity of free consultation by traditionalChinese medicine doctors, bring health to thousands of families.
Compliance in OperationCompliance in Operation
Compliance inOperationZhonggu Logistics always pursuing"safe, e?cient and green"development, andestablished a characteristic governance structure that is in line with the characteristicsof the logistics industry, supports the Company's strategic development, andcontributes to the Company's production and operation. We are strictly followingrelevant laws and regulations and listing management provisions, improved thequality of corporate governance and operation and achieved steady improvement inbusiness quality and operational e?ciency by continuously optimizing the internalcontrol system and comprehensive risk management system, continuously deepeningstandardized operations, and enhancing scienti?c governance.
Zhonggu Logistics continues to improve corporate governance and enhance standardized operation in strictaccordance with the requirements of such laws and regulations as the Company Law of the People's Republicof China, the Code of Corporate Governance of Listed Companies, the Guidelines for Introducing IndependentDirectors to the Board of Directors of Listed Companies, the Rules for the Shareholders' Meetings of ListedCompanies and the Guidelines for Articles of Association of Listed Companies. In light of the actual conditions, wehave given full play to the role of our Board of Directors and specialized committees to ensure that the functionsand responsibilities of the Shareholders' Meetings, the Board of Directors, the Board of Supervisors and themanagers can be fully performed, so as to safeguard the common interests of our shareholders and the Company.Zhonggu Logistics attaches great importance to the diversity and professionalism of board members. The boardof directors has nine members, including three independent non-executive directors, and independent directorsaccount for 33%, Female directors, supervisors and senior executives account for 29%.
Corporate Governance
Zhonggu Logistics has taken multiple measures to strengthen internal governance. First, we created a long-termmechanism for compliance management and boosted the e?ciency of functioning by building a sound corporategovernance structure. Second, we established a collaborative work?ow and operation mechanism to ensure thatwe plan all work with foresight by setting up a communication platform. Third, we re?ned our internal controlsystem and risk management process with clearly de?ned responsibilities and methods by establishing a systemfor managing internal control.
Corporate Governance Structure
Shareholders'
Meeting
Board ofSupervisors
AuditCommittee
NominationCommittee
Compensationand AppraisalCommittee
StrategyDevelopmentCommittee
Board ofDirectors
Compliance in OperationCompliance in Operation
Zhonggu Logistics strictly abides by the Company Law of the People's Republic of China and other state lawsand regulations, industry standards and relevant rules within the group for internal governance in our day-to-day operations to sustain the solid growth of the Company. During the reporting period, we developed a series ofindicators for cost control, asset management and other aspects, such as a ship's loading rate, port stay durationand direct docking rate, to monitor and manage the operational conditions of the Company.Based on a complete compliance system, Zhonggu Logistics provided compliance training to key directors,supervisors, and senior managers, to ensure that relevant personnel understand and comply with relevantregulations and policies. In addition, the Company also organized sta? to study any changes in regulatory policywhile notifying and training all departments involved, to ensure that the Company's business activities are carriedout in accordance with the latest regulatory requirements.
In recent years, Zhonggu Logistics has stayed committed to strengthening a mechanism of "creating a deterrentagainst corruption, preventing corruption and building moral defenses against corruption", to maintain integrityand e?ciency at work. We have formulated anti-corruption rules such as the Management Measures for CombatingCorruption and Upholding Integrity, and the Management Measures for Accountability for Dereliction of Duty andViolation of Regulations to improve the anti-corruption system through institutional improvement. Meanwhile, weset up a steering group that aims to address corruption and enhance integrity. The chairman of the Company servesas the chair, with directors as deputy chairs. The group members consist of heads of various departments, regionsand wholly-owned subsidiaries. Furthermore, the Company has set up internal and external reporting mechanisms,encouraging internal and external personnel to actively give feedback on issues, in order to establish a morerigorous anti-corruption system.To help employees establish the awareness of integrity, Zhonggu Logistics has organized anti-corruption trainingfor new employees and middle and senior leaders respectively, which has enhanced the anti-corruption awarenessof all employees and promoted the formation of a clean and honest atmosphere.
Compliance in Operation
Business Ethics
Anti-corruption Training Activities for Employees in 2023In 2023, the Risk Control Centerorganized the company-wide IntegrityPublicity Month activity, the postintegrity pledge activity, the activityof investigating the employment ofrelevant employees and their relativesin associated departments, the activityof studying anti-corruption cases,and the anti-corruption and integrityknowledge competition.
Zhonggu Logistics has firmly grasped the risk control mechanism, strengthenedthe risk assessment and early warning mechanism, achieved new breakthroughsin governance capabilities, and promoted the comprehensive development ofthe risk governance system. The Company has established a risk control andprevention working group led by the General Manager, with the heads of the RiskControl Center and other centers as members, to advance the internal controlwork in an institutional and systematic manner. The Company organizes to assessand check internal control situations of each department. As of the end of thereporting period, the Company had a total of 106 internal control rules and revisedor improved 25 internal control rules in 2023.
Risk Management
Organizational Structure of Risk Management and Control
Risk ControlCenter
Legal Department
Internal Audit
DepartmentFinancial Center
General Manager(Team Leader)
Safety andQuality Center
Administration
Center
Marketing Center
Compliance in OperationCompliance in Operation
During the reporting period, the Company set the goals of diversi?ed risk management in risk preventionand control, and the goals involved the Group and various subsidiaries.
In addition, we have improved the rate of implementing the internal control system and strengthened the internalcontrol by tracking and correcting the defects in domestic trade business management, recruitment approval, etc.
In order to further avoid the occurrence of risk events and reduce the potential damage to the Company's propertyand personnel, we have organized risk control training many times, thus enhancing the risk prevention awarenessand professional competence of our management team and employees. In addition, we also release relevant trainingvideos through the online training platform "E-School", so that all employees can learn the knowledge of riskmanagement at any time, thus enhancing their risk prevention awareness.
Loss of no more than 3 million Yuan(including the litigation fee)
Externalcompensation
Loss of no more than 1 million YuanMajor naturaldisasters and safety
accidents
Legal support required
Major businessitems and decisions
No adverse eventsInternal audit
Goals of diverse risk management in 2023
The defective
departmentsubmits arecti?cation planand estimates thecompletion time
Review by theInternal AuditDepartment
Inspection and
correction ofinternal controldefects
Training on Legal Knowledge and Risk Management
Appendix
Appendix
Appendix
Instructions for use
From January 1 to December 31, 2023, Shanghai Zhonggu Logistics Co., Ltd. reportedthe information cited in this GRI index with reference to the GRI standard.GRI 1 GRI 1: Basics 2021Disclosureissue/item
Title of disclosure ChapterGRI 1: Basics 2021GRI 2: General Disclosures 2021Organization and Reporting Practices
2-1Organization detailsZhonggu Logistics at a Glance2-2Entities included in the organization's sustainability reportingAbout the Report2-3Reporting period, frequency, and contact pointAbout the Report2-5External guaranteeAbout the ReportEmployees and Activities
2-6Activities, value chains and other business relationshipsIssues of major concern2-7EmployeesTalent developmentGovernance2-9Governance structure and compositionCorporate governance2-12Supervisory role of the supreme governing body in management impactESG governance structure2-13Delegation of responsibility for managing impactsESG governance structure2-14Role of the highest governance body in sustainability reportingESG governance structure2-15Con?icts of interestAnalysis of issues of major concern2-16Communication of critical concernsAnalysis of issues of major concern2-17Collective knowledge of the highest governing bodyESG governance structureStrategies, Policies and Practices2-22Statement on sustainable development strategyMessage from the ChairmanStakeholder Engagement
2-29Stakeholder engagement approachStakeholder communication
GRI 3: General Disclosures 20213-1Process for identifying substantive issuesAnalysis of issues of major concern3-2List of substantive issuesAnalysis of issues of major concern3-3Management of substantive issuesAnalysis of issues of major concernGRI 201: Economic Performance 2016
201-1Direct economic value generated and distributedKey performanceGRI 205: Anti-corruption 2016205-1Operations assessed for risks related to corruptionBusiness ethics205-2Communication and training about anti-corruption policies and proceduresBusiness ethics205-3Con?rmed incidents of corruption and actions takenBusiness ethics
EnvironmentGRI 302: Energy 2016
302-1Energy consumption within the organizationTackling climate change302-3Energy intensityTackling climate change302-4Reduction of energy consumptionLow-carbon sailingGRI 303: Water Resources and Wastewater 2018
303-1Interaction with water as a shared resourceResource management303-2Management of water discharge-related impactsResource management303-3Water withdrawalResource management303-4Water dischargeResource management303-5Water consumptionResource management
GRI 305: Emissions 2016
305-1Direct (Scope 1) GHG emissionsTackling climate change305-2Energy indirect (Scope 2) GHG emissionsTackling climate change305-4GHG emissions intensityTackling climate change305-5Reduction of GHG emissionsTackling climate change305-7Nitrogen oxides (NOx), sulfur oxides (SOx), and other signi?cant air emissionsEmission managementGRI 306: Waste 2020306-1Waste generation and signi?cant waste-related impactsEmission management306-2Management of signi?cant waste-related impactsEmission management306-3Waste generatedEmission management306-5Waste directed to disposalEmission management
SocietyGRI 401: Recruitment and Employment 2016401-1New hires and employee turnoverPromote diversity and equality401-2
Bene?ts provided to full-time employees that are not provided to temporary orpart-time employees
Care for our employeesGRI 403: Occupational Health and Safety 2018
403-1Occupational health and safety management systemCare for our employees403-2Hazard identi?cation, risk assessment and incident investigationCare for our employees403-3Occupational health serviceCare for our employees403-5Worker training on occupational health and safetyCare for our employees403-6Promotion of worker healthCare for our employees403-7
Prevention and mitigation of occupational health and safety impacts directly linkedby business relationships
Care for our employees403-8Workers covered by an occupational health and safety management systemCare for our employees403-9Work-related injuriesCare for our employees403-10Work-related health issuesCare for our employeesGRI 404: Training and Education 2016
404-1Average hours of training per year per employeeTalent development404-2Programs for upgrading employee skills and transition assistance programsTalent developmentGRI 405: Diversity and Equal Access 2016
405-1Diversity of governing bodies and employeesPromote diversity and equalityGRI 406: Anti-Discrimination 2016
406-1Incidents of discrimination and corrective actions takenPromote diversity and equality
GRI 408: Child Labor 2016408-1Operations and suppliers at signi?cant risk for incidents of child laborPromote diversity and equalityGRI 409: Forced or Compulsory Labor 2016
409-1
Operations and suppliers at signi?cant risk for incidents of forced or compulsorylabor
Promote diversity and equalityGRI 414: Social Assessment of Suppliers 2016
414-1New suppliers that were screened using social criteriaStrengthen supply chain managementGRI 418: Customer Privacy 2016
418-1
Substantiated complaints concerning breaches of customer privacy and losses ofcustomer data
Digital Shipping Transformation
GRI Index
AppendixAppendix
EnvironmentIssueIndicatorUnit2023
Energy consumption
GasolinekWh1,622,251.42DieselkWh310,356,964.81Low sulfur fuel oilkWh3,409,340,532.30Lubricating oilkWh24,093,849.09Total direct energy consumption kWh3,542,779,630ElectricitykWh1,678,000.00Total indirect energy consumption kWh1,678,000.00Total energy consumptionkWh3,308,066,145Total energy intensitykWh/(1 million Chinese Yuan)301,242.42GHG Emissions
Scope 1 GHG emissionsTon of CO
equivalent 1,005,206.41Scope 2 GHG emissionsTon of CO
equivalent 1,765.64Total GHG emissionsTon of CO
equivalent 1,006,972.05GHG emissions intensity
Ton of CO
equivalent/(1 millionChinese Yuan)
80.95
Water resources
Total water consumptionTon101,562.70Water consumption intensityTon/million Chinese Yuan8.16Freshwater consumptionTon97,843.00Total water recycling and reuseTon662.00Water cycle and reuse rate%0.34Wastewater
Total wastewater dischargeTon14,154.74Wastewater discharge intensityTon/million Chinese Yuan1.14Waste gas
Nitrogen oxides Ton25,517.07Sulfur oxidesTon83,690Suspended particles and particulate matters Ton631.26Total waste gas emissionsTon43,115.06Waste gas emission intensityTon/million Chinese Yuan3.47Wastes
Total amount of hazardous wasteTon1,551.00Intensity of hazardous wasteTon/million Chinese Yuan0.12Total amount of harmless wasteTon675.20Intensity of harmless wasteTon/million Chinese Yuan0.05ConsumablesAmount of paper usedTon12.10Investment inenvironmental protection
Total investment in environmental protectionTen thousand Chinese Yuan922Proportion of total investment in environmentalprotection to operating income
%0.07SocietyIssueIndicatorUnit2023Number of employees
Total number of employeesNumber of employeesPerson1,471By type of employment
Permanent employeesPerson1,471Dispatched laborPerson0Part-time employees Person0By gender
MalePerson1,117FemalePerson354By rank
Top-level managementPerson49Mid-level managementPerson127Rank & ?lePerson1,295
By age
30 and belowPerson76631-50Person63850 and abovePerson67By region
Chinese mainlandPerson1,471Hong Kong, Macao and TaiwanPerson0OverseasPerson0
Employee Turnover Rate
Overall turnover rate Turnover rate%15.52By gender
Male%14.20Female%19.11By age
30 and below%16.7231-50%13.4350 and above%18.75By region
Chinese mainland%15.52Hong Kong, Macao and Taiwan%0Overseas%0
Occupational Health and Safety
DeathNumber of work-related deathsPerson0
Work-related injuries
Number of work-related deaths per millionChinese Yuan
Person/million Chinese Yuan0Days of work lost due to occupational injuriesDay0Days of work lost due to occupational injuriesper million Chinese Yuan
Day/million Chinese Yuan0Work injury rate%0Number of work-related injuriesPerson0Number of work-related accidentsNo.0Number of safety trainees
Number of trainees participating in safetytraining
Person50Total hours of employeesparticipating in safety productiontraining
Total hours of employees participating in safetyproduction training
Hour1,920.00Number of safety drillsNumber of safety drillsNo.8Development and Training
Total number of traineesTotal number of traineesPerson times22,328Total number of traineesTotal number of traineesPerson1,471Investment in employee training
Total investment in employee trainingTen thousand Chinese Yuan290.00Employee training investment per millionChinese Yuan
Ten thousand Chinese Yuan0.02Average employee training and developmentinvestment
Ten thousand Chinese Yuan/
person
0.19
Employee training coverageTotal coverage%100Number of trainees by gender
MalePerson1,117FemalePerson354Percentage of training by gender
Male%76Female%24Number of trainees by rank
Top-level managementPerson49Mid-level managementPerson127Rank & ?lePerson1,295Percentage of training by rank
Top-level management%3Mid-level management%9Rank & ?le%88Average number of hours oftraining per employee
Average number of hours of training peremployee
Hour44.28
Performance Summary
AppendixAppendix
Total training hours of employees
MaleHour49,706.50FemaleHour15,441.48Top-level managementHour2,352.00Mid-level managementHour5,842.00Rank & ?leHour56,928.20Average number of hours oftraining by gender
MaleHour44.50FemaleHour43.62Average number of hours oftraining by rank
Top-level managementHour48.00Mid-level managementHour46.00Rank & ?leHour43.96Compensation and RevenueCompensation and revenue
Salary per capitaTen thousand Chinese Yuan27.48Income per capitaTen thousand Chinese Yuan845.60
Supply Chain
SupplierTotal number of suppliersNo.3,238By region
China MainlandNo.3,115Hong Kong, Macao and TaiwanNo.16OverseasNo.107Products and Services
Recall
Number of incidents recalled for safety andhealth reasons
No.0Complaint
Number of complaints received about productsand services
No.170Handling rate of complaints received aboutproducts and services
%100Number of customer complaints per millionChinese Yuan
No./million Chinese Yuan0.0137Customer satisfaction%97
Intellectual PropertyPatentNumber of patent applications heldNo.0TrademarkNumber of trademarks heldNo.3Copyright
Number of software copyright heldNo.12Number of software titles per million ChineseYuan
No./million Chinese Yuan0.0117
R&D and Innovation
Research and development
Number of R&D employeesPerson63R&D sta? ratio%4.19R&D investmentTen thousand Chinese Yuan2,068.81R&D investment as a percentage of revenue%0.17
Community Charity
Public welfare
Donations outside the communityYuan200,000Investment in community activities for publicgood
Chinese Yuan200,000Community public welfare investment permillion Chinese Yuan
Yuan/million Chinese Yuan16.08Employee volunteer hoursHour12,000Employee volunteer hours per employeeHour8Social contribution per shareChinese Yuan
8081
1.65
Reporting Evaluation and Suggestions
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Reporting Evaluation andSuggestions
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