厦门象屿:Xiangyu 2022 Environmental,Social and Governance Report

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Dear readers:
We appreciate your time and attention in reviewing our inaugural ESG report presented by Xiamen Xiangyu.We truly appreciate your attention and would be grateful if you could share your insights with us enabling
us to enhance the report even further.If you have any comments or suggestions regarding our Company’s sustainable development please feel
free to scan the QR code provided below or email us at stock@xiangyu.cn.MESSAGE FROM THE CHAIRMAN 03
ABOUT XIAMEN XIANGYU 05
Company Profile 05
Company Culture 06 13 35
Company Honors 06 GOVERNANCE CHAPTER: Keep Pace with GSoOvCeIrAnLa nCcHeA CPhTaEpRt：er:
the Times and Strengthening the Foundation of the Enterprise KCeoeope urapt ew ainthd Btheen etfiimt Mesu taunaldly ltaoywsa ard so al iWd ifno-uwnind Saittiuoantion
2022 Annual Performance 07
Corporate Governance 15 Protection of Employment Rights 37
Risk Control Management 16 Empower Employees 42
SUSTAINABILITY MANAGEMENT 09 Compliance Management 20 Corporate Social Responsibility (CSR) 46
Stakeholder Communications 09 Merchant Management 21
ESG Governance Structure 10 Data Security Management 24
Materiality Assessment 12
25 49 ROADMAP AHEAD 59
APPENDIX 61
SERVICE CHAPTER: Pursuing Profit for the World's Well-being ENVIRONMENTAL CHAPTER: Discovering the Splendor of
Servicing for High-quality Development of the Nation Natural Environment and Leading the Way for Green Innovation
About the Report 61
Business Model 27 Green Logistics 51 List of Policies 62
The Transformation of the Company's Environmental-friendly Workplace 53 Key Performance Indicators 63
Digital Intelligence 29
Servicing Green Industry Customers 55 Index of Standards 67
Application of Green Technology 57
CONTENTSMessage from About Sustainability Governance Chapter: Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
MESSAGE FROM THE CHAIRMAN
As we release our inaugural ESG report our aim is to enhance the
comprehension of ESG principles across the entire organization
improve our ESG governance framework and promote a
coexistent and mutually beneficial value ecosystem through the
development of sustainable supply chains.The industrial and supply chains is the "backbone and lifeline" of the national economy providing critical reinforcement in enhancing their fulfillment capabilities building momentum for transformation and upgrading and leading the
for the pursuit of high-quality development and more importantly acting as the vital force propelling the epochal charge in developing a green efficient and innovative bulk supply chain paradigm.waves of advancement. Standing by the company mission of " Benefit the World Achieve Success Together " we have
By encouraging innovation with a practical mindset and unleashing the future with intelligence. We embrace
consistently adhered to the development philosophy of "Risk First Profit Second Service Scale Third" since our IPO in
cutting-edge technology to unleash our core strength with the power of digital intelligence further enhancing
2011. In the ever-changing marketplace we firmly grasp the sustainable development direction contributing to the
the efficiency of our refined management and forging a "smart engine" for collaborative development within the
construction of a safe stable smooth efficient open inclusive mutually beneficial and win-win global industrial
industry. Our comprehensive suite of industry-standard digital programes including "YuLianTong" digital supply
and supply chain ecosystem.chain service platform and industrial-level internet platform for agriculture and smart logistics platforms have
In the past three years the international situation has been turbulent the economic landscape has changed grey successfully transitioned from "zero" to "one". We provide viable accessible and usable instances for the application
rhinos and black swans have occurred frequently and companies must look for certainty amidst uncertainty. We of digital intelligence in the bulk supply chain field.know that we must make the "ESG gene" rooted in Xiangyu's culture clearer and make the invisible gene explicit in
With a commitment to neighborly kindness and a mission of global harmony we embarked on a journey of
order to stimulate long-term value. We are upgrading the ESG concept into ESG strategy comprehensively examining
cross-border trade in bulk commodities fueled by an innate understanding of the international marketplace.the impact of business decisions and daily operations on society and the environment consciously enhancing
Currently following our vision of connecting the world we capitalize on our forward-thinking international brand
stakeholder participation and guarantee their right to know and actively creating comprehensive social and
strategy constructing a truly global bulk supply chain service system and extending our business relations to over
environmental values and sharing values with the society.
120 countries and regions.We actively work together with the international "circle of friends" to create more practical
Where all things flow freely prosperity ensues. We invigorate growth with logistics and add vibrancy to lucid waters collaboration results so that the new opportunities for development of the industrial chain to benefit the world and
and lush mountains through circulation. Harnessing our pioneering "Road Transport Rail Transport Water Transport to add momentum to achieve a greener more inclusive and sustainable growth of the global economy.and Warehousing" networked logistics system we achieve seamless coordination among multi-model transport
modes such as "Switching from Road to Rail Transport" "Consolidating Loose Cargo into Containers" "Port-to-Port
Cooperation". We actively assimilate societal transport capabilities and strategic resources from port and aviation
junctions thereby bolstering critical aspects of the industrial chain. Our bespoke supply chain services offer our Deng Qidong Chairman of the Board
clients "one-stop service green supply chain end-to-end supply chain" solutions aiding manufacturing enterprises
03 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 04Message from About Sustainability Governance Chapter: Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
Company Mission
ABOUT XIAMEN XIANGYU Five ConceptsBenefit the World Achieve Success Risk First; Building a Firm Foundation in the
Together Market; Cooperation for Win-Win Results;
Innovative Development; Two-wheel Drive
Company Profile Company Vision Corporate Five-star Behaviors
to Become a World-class Supply Assume Responsibility and Take
Xiamen Xiangyu is primarily engaged in the provision of bulk supply chain services. By integrating logistics trade capital flow and information Chain Service Enterprise Culture Action; Be Pragmatic and Efficient; Be Customer-Oriented; Be Open
flow through a unified circulation service platform we offers customers a full value chain circulation service ranging from the procurement and and Inclusive; Be Pleasant and
supply of raw materials and semi-finished products to the distribution and delivery of finished products. This has resulted in a comprehensive Straightforward
supply chain service system for agricultural products energy and chemical products metal and mineral resources and new energy commodities. Core Principle of Organizational
Construction Xiamen Xiangyu Spirit
Xiamen Xiangyu collaborates with partners from more than 120 countries and its investments span across 27 provinces municipalities and
special administrative regions in China. The Company also establishes subsidiaries in the United States New Zealand Singapore Indonesia Uphold Party Leadership Grassroots Spirit Devotion to
Undertakings
Vietnam and other countries to contribute to the construction of a mutually beneficial diversified balanced safe and efficient open economic
system.Core Values
Take Value Creation as the Foundation
Company Honors
Honours Awarded by
Ranked 1323th among the Top 2000 global listed companies by Forbes Forbes Magazine
Ranked 28th in the Fortune China 500 and 1st in the Transportation logistics and
Fortune China
warehousing industry
No.2 among the Top 50 Logistics Enterprises in China China Federation of Logistics & Purchasing
Outstanding Logistics Enterprises in China China Logistics and Purchasing Magazine
Innovative Logistics Demonstration Enterprise in China China Logistics and Purchasing Magazine
AAAAA Logistics Enterprise China Federation of Logistics & Purchasing
5A-level Supply Chain Service Enterprises China Federation of Logistics & Purchasing
ESG Competitiveness - Responsible Sourcing Golden Bee Intelligence
Global Presence of Xiamen Xiangyu
Subject's AAA Credit Rating Maintained United Credit Rating Co. Ltd
Fujian Province Integrity-oriented Contract-abiding Enterprise Fujian Province Market Supervision Administration
National Supply Chain Innovation and Application Demonstration Enterprise Ministry of Commerce People's
Green Channel Enterprise of Customs Price Evaluation Xiamen Customs
National Demonstration Enterprise for Transformation and Upgrading of Warehousing
China Association of Warehousing and Distribution
Company name: Xiamen Xiangyu Co. Ltd. Stock code: 600057.SH Industry
A-class Enterprise of Xiamen Customs Xiamen Customs
Abbreviation: Xiamen Xiangyu Stock Abbreviation: XIANGYU
Top 30 Employers in China with the Most Development Potential of the Year Zhaopin
Head office: Xiamen Fujian Province China
Five-star Certified Trade Union Xiamen Federation of Trade Unions
05 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 06Message from About Sustainability Governance Chapter: Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
2022 Annual Performance
Total Assets Total Operating Revenue The Number of Employee The Amount of Subsidies Provided
participation in training for Employees in Need
115.056billion yuan 538.148billion yuan 147626person-times 244000yuan
Net Profit Attributable to Parent ROE (Weighted) The Amount of Investment in Life The Amount of Incidents or Accidents
Company Owners Insurance for Employees in Workplace Safety Production
Governance 2.637billion yuan 18.06% Social 7.5427million yuan 7.3572million yuan
performance Performance
EPS - Basic The Amount of Investment in Rural Revitalization
1.10yuan/per share 1059400yuan
Operating Volume of Metal Operating Volume of Agricultural
Minerals The Reduction of Carbon Emissions The Reduction of Carbon Emissions Products through Intermodal Transportation through Intermodal Transportation
116.65 17.64 such as Shifting Freight from Road such as Shifting Freight from Road million tons million tons to Rail to Rail
million tons 27000tons
Operating Volume of Energy and Operating Volume of New 1.47
Chemical Industry Energy Materials
63.45 210000 The Reduction of Carbon Emissions The Accumulated Number of Fleet Customer million tons tons Environmental through Intermodal Transportation Vehicles Converted from Diesel to
Service Performance such as Consolidating Loose Cargo Natural Gas
Performance into Containers
Obtained Special Credit for Customers through "YuLianTong" Digital Supply
Chain Service Platform 6028.8tons 95vehicles
Nearly9billion yuan
07 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 08Message from About Sustainability Governance Chapter: Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
SUSTAINABILITY MANAGEMENT
ESG Governance
Structure Strategic Management Committee as supervisory and With the strategic vision of "becoming a world-class supply chain service enterprise" Xiamen Xiangyu actively responds to guiding bodies
the Sustainable Development Goals (SDGs). We are committed to leveraging innovative technologies such as digitization and ESG Execution Committee
the Internet of Things (IoTs) to improve our environmental resource utilization and social performance. We regularly disclose Xiamen Xiangyu has established a comprehensive
information on our directions and progresses with stakeholders. ESG management framework with the Strategic
Management Committee and its ESG Execution as the driving
Committee as overseeing and guiding authorities ESG Management Office force and daily
management entity
and the ESG Management Office serving as the
coordinating entity for routine ESG-related work.Each subsidiary acts as the executing entity
with designated ESG coordinators within each Mental Energy Chemical Agroforestry Logistics Functional
Stakeholder Communications subsidiary and functional department serving as Division Division Division Division Division as the executing entitythe foundational units for ESG management. This
ensures that ESG considerations are effectively
Xiamen Xiangyu actively engages in communication with stakeholders to identify and assess key materialities that may integrated into the Company's regular operational
impact the Company's reputation business performance and sustainable development. This approach aims to enhance the activities.transparency and trustworthiness of our reporting.Investors Customers Employees Suppliers Government and Regulatory Bodies Partners Community Public and Media
* Business Growth * Stable Supply of Goods * Protection of Rights * Fulfilling Contracts * Compliance Operations * Fulfilling Contracts with * Fostering Community * Disclosing of
with Integrity Integrity Growth Business Progress of
* Financial Returns * Expanding Sales Channels * Occupational Health and Safety * Tax Compliance the Company
* Open Fair * Commercial Ethics and * Safeguarding the
* Effective Governance * Training and Promotion and Impartial * Observing Business Ethics Transparency Environment * Assuming
* Sustainable Development * Compensation and Benefits Procurement * Stimulating for Local Environmental and
Mechanism * Contributing to SocietyEconomic Development Social Responsibility
* Stimulating Employment
* Growing Business in a Sustainable Way * Optimizing Customer Service * Signing Employment Contract * Fulfilling Contracts * Observing Law and * Integrity in Project * Fostering Community * Press Releases
in Accordance with Discipline Cooperation Interaction
* Increasing the Amount of Dividend * Signing Long-term Agreements * Ensuring Workplace Safety the Law * Accommodating
Payouts * Integrity in Tax Payment * Emphasizing Business * Implementing Eco- Media Interviews
* Improving the Training System * Standardize Ethics Construction friendly Operations
* Improving Corporate Governance and Career Advancement Procurement Systems * Prudent Management * Safeguarding the
System * Supporting Social Environment
* Ensuring Timely Information Disclosure * Local Employment Welfare Initiatives
* Improving the Salary and * Upholding Social
* Organizing Company Open House Benefits Incentive System * Contributing through Responsibilities
Events Charitable Giving
* Implementing Equity Incentive
* Developing Sustainable Business Plan
Strategies
09 Xiamen Xiangyu Co.Ltd. Environmental Social and Governance (ESG) Report 2022 10
Responses Expectations andDemands StakeholdersMessage from About Sustainability Governance Chapter: Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
SUSTAINABILITY MANAGEMENT
Xiamen Xiangyu is committed to establishing and improving the smooth communication channels with its stakeholders
and continuously improving the effectiveness and timeliness of the dialogue with a continuously improved communication Materiality Assessment
mechanism. During the reporting period we maintained regular communication with our stakeholders and conducted
in-depth communication with stakeholder groups such as industry associations shareholders merchants and employees
Xiamen Xiangyu consistently monitors and assesses material issues in the realm of sustainability tailoring them to the Company's real-world
respectively in order to better understand and respond to their expectations and demands for the Company and to insist
business conditions. The Company periodically assesses the significance of these issues and prioritizes them accordingly integrating the findings
on promoting sustainable development of the enterprise together with each stakeholder.into its strategic planning and decision-making processes. This approach ensures the implementation of sustainability principles throughout the
Company's operations.Industry Association Representative We refer to international standards such as the Global Reporting Initiative (GRI) Standards the Sustainability Accounting Standards Board (SASB)
as well as the criteria from international rating agencies such as MSCI and S&P. In accordance with our Company's actual business operations we
have identified 15 material issues that have a significant impact on our business. Taking into account the expectations of internal and external
"Xiamen Xiangyu's shift from relying on price differentials in commodity trading to providing reliable and efficient stakeholders we assess and prioritize these issues based on two dimensions: "importance to business growth" and "importance to society and
supply chain services has set a remarkable example for the development of China's supply chain industry." the environment." By doing so we can allocate resources effectively to address the most pressing sustainability challenges we currently face.Shareholder Representative Over the course of the reporting period the Company identified a total of 7 high-priority material issues. All departments have conducted
systematic and extensive management and practices around these topics. Detailed descriptions of the related information can be found in the
subsequent main chapters of the report."We highly recognize the prospects of China's bulk supply chain industry as well as Xiamen Xiangyu's business
philosophy operational layout and development strategies. We have confidence in Xiamen Xiangyu's forward-
looking positioning in various fields and we look forward to growing together with such an outstanding company."
Customer Representative
Corporate Governance Environmental Social
"We are deeply impressed by Xiamen Xiangyu's commitment to mutual assistance and their pragmatic and Compliant operations IR management Talent cultivation and development Responsible Green logistics
professional services. By incorporating ESG principles into our collaboration we can jointly establish a harmonious and risk management procurement and Digital transformation
and positive ESG ecosystem."
"We have been partnering with Xiamen Xiangyu for over a decade. As a leading player in the bulk supply chain
industry Xiamen Xiangyu has demonstrated strong capabilities in both channels and logistics providing us with Risk management
customized solutions that address our specific supply chain service needs. We are also willing to work closely with Green logistics IR management
Xiamen Xiangyu in ESG communication building a mutually beneficial and trusting relationship where we can
Anti-corruption
collaborate and share together." Digital transformation Compliant
operations
Responsible
Employee Representative
Pollution procurement
Prevention Talent cultivation and
development
"Xiamen Xiangyu's rapid development has provided us the younger generation with numerous opportunities. The Community and Government Relations
Company's systematic and standardized training and development mechanisms give us a strong sense of belonging
and achievement." Community Contribution Employment rights protection
and Charitable Donations Tax integrity
"Since the Company went public in 2011 I have witnessed every critical moment of its growth and I feel immensely
proud and honored. Xiamen Xiangyu's sunny and uncomplicated work atmosphere allows me to wholeheartedly Intellectual
dedicate myself to my work pursuing our shared goals and ideals." Data securityProperty Protection
"With the support of Xiamen Xiangyu I have grown from a fresh-faced to a middle-level executive. Being able to
grow alongside a forward-thinking company makes me feel that my youth and time are well spent." Importance to business growth
11 Xiamen Xiangyu Co.Ltd. Environmental Social and Governance (ESG) Report 2022 12
Importance to society and the environmentXiamen Xiangyu promotes corporate governance systematization
standardization and transparency promotes law-abiding and compliant
enterprise operation increases investor confidence and trust ensures
the Company's sustained and healthy development and safeguards the
legitimate rights and interests of investors and actively wins recognition
and support from all walks of life.GOVERNANCE CHARPTER
Keep Pace with the Times and Strengthening the
Foundation of the Enterprise
13 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 14Message from About Sustainability Governance Chapter: Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
of the Enterprise of the Nation Leading the Way for Green Innovation
2022 Bussiness Performance Diversity and
The professional background of board The Board of Directors has 9 members
Total Assets Total Operating Revenue Net profit Independence of the members cover various fields such as including 3 independent directors.（Unit：100M CNY） （Unit：100M CNY） （Unit：100M CNY） Board of Directors Logistics Trade Finance and Law etc.
5381.484625.16
Key Performance
1150.56
958.34 37.78 27.54 Corporate Governance Indicators
Indicators Number (As of the end of December 2022) Unit
202220212022202120222021
Growth Rate Compared to Same Period Growth Rate Compared to Same Period Growth Rate Compared to Same Period Board of Directors Meetings 16 times
Previous Year Previous Year Previous Year
Board of Supervisors Meetings 11 times
20.06%16.35%37.18%
General Meeting of Shareholders 7 times
Net profit Attributable to Parent ROE（weighted） EPS-Basic Audit Committee Meetings 11 times
Ccompany Owners（Unit：100M CNY） （Unit：%） （Unit：yuan/share）
Remuneration and Assessment Committee Meetings 2 times
18.06
1.10 Investment Development (Strategy) Committee 1 times
17.14 Meetings0.93
26.37 Release of Periodic Reports to the Public 4 pieces21.94
Release of Interim Announcements 108 pieces
202220212022202120222021
Growth Rate Compared to Same Period Growth Rate Compared to Same Period Growth Rate Compared to Same Period Replying to SSE E-interactive online Platform 26 times
Previous Year Previous Year Previous Year
20.18% 0.92% 18.28% Answering investors' inquiries 300 calls
Handling IR mailbox mail 100 seals
CORPORATE GOVERNANCE
The Board of Directors of the Company comprises three distinct committees - the Audit Committee the Compensation and Evaluation
Committee and the Investment Development (Strategic) Committee. The primary responsibility of the Audit Committee is to ensure
the accuracy and transparency of the Company’s financial reports. The Compensation and Evaluation Committee sets performance RISK CONTROL MANAGEMENT
benchmarks for our directors and senior management and is entrusted with the task of designing and reviewing policies and plans
related to their compensation. Meanwhile the Investment Development (Strategic) Committee evaluates the Company's strategic Xiamen Xiangyu follows the business philosophy of "Risk First Profit Second and Service Scale Third" establishing a comprehensive
direction taking into account factors such as investment and business development plans market dynamics competition and emerging risk management system and formulating the Management of Risk management forming a comprehensive and coordinated risk
trends. They provide valuable insights and recommendations to the Board of Directors aiding in informed decision-making. management organization system from the board of directors to the front-line business units effectively strengthening the Company's
Xiamen Xiangyu established the Data Application Department in 2021 to provide strong support for the transformation of digital internal control and achieve sustainable stable and healthy development of the Company's various businesses and overall operations.intelligence in terms of data strategy development data governance platform data application and analysis and talent training.Over the course of the reporting period several master data such as customer warehouse port country administrative division and
management organization have been implemented online and over 100 data execution standards and over 200000 business standard
data have been sorted out.Risk Management Focusing on the overall risk management goal of "controllable" and "manageable" the Company Over the course of the reporting period it is planned by the Company to introduce two strategic investors China Merchants and takes the internal control construction cycle as the main body the basic management cycle
Shandong Port Group in order to further optimize the ownership structure and board of directors composition which is conducive to Approaches and compliance management cycle as the "two wings" and uses digitalization of risk control
the continuous improvement of corporate governance. risk control empowerment and capacity building of risk control organizations as the driving
force and grasps the three lines of defense to form a joint prevention and control collective
prevention and effective mechanism of risk management.
15 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 16Message from About Sustainability Governance Chapter: Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
of the Enterprise of the Nation Leading the Way for Green Innovation
Risk Management System The Second Line of Defense Headquarters Risk Management Department
Regularly assess and manage the risks for which the department is responsible improve the corresponding internal control system guide
the risk management of vertical departments within various business units and perform risk management functions.The approach we take to risk management involves the use of a risk list to identify and respond
to key risks clear definition of important control measures through an internal control manual
Main Content evaluation of control measure effectiveness and incorporation into performance assessments
to keep risk management within acceptable limits..The Third Line of Defense Audit Department and Board Audit Committee
he audit department is in charge of identifying the Company's and each business unit's major risks. The audit department organizes
the revision of the internal control manual based on the evaluation results encourages the effective implementation of risk response
Basic Management Cycle: By constructing a basic management cycle system of "standardized measures and organizes the internal control effectiveness evaluation and internal control assessment to promote the realization of the
assembly operation manual publication and reading of assembly manual publicizing and risk management system according to the risk.teaching of assembly manual examination related to qualification and normalization inspection
and rectification" the Company realizes the construction goal of "standardized perfection The board is in charge of determining the Company's overall risk preference comprehensively controlling the major risks in the operation
effective publicity and strong execution". process supervising the cultivation of enterprise risk management culture.Two wings
Compliance Management Cycle: The Company establishs and improve the compliance risk
management mechanism to prevent and control compliance risks with the main connotation of
"identifying and evaluating compliance risks planning and solving compliance risks and achieving
objectives implementing planning and compliance risk control performance evaluation and
compliance reporting and managing non-compliance and continuous improvement."
Proactive Risk Control
Power Risk control digitalization risk control empowerment and risk control organization capacity
building. On the basis of controlling traditional risks such as financial risks operational risks legal risks and market risks the Company also pays attention
to strategic risks human resource risks business structural risks and institutional risks.Strategic Risk
The Company emphasizes that "recognizing the general trend is the greatest strategy" discuss the
Risk Management Framework national principles and policies and the domestic and international situation through institutionalized study and make scientific decisions in line with the general trend.In terms of risk control structure the Company has established "three lines of defense" for risks consisting of first-line business departments
headquarters risk control department and headquarters audit department and audit committee.Human Resource Risk
The Company pays attention to the reasonable collocation and complementarity of age education
and ability structure of leading bodies and cadres strengthen senior managers' moral cultivation and
ability construction and implement "information moving up power decentralization and responsibility
"Three Lines of Defense" of Risk Management to people" in mechanism.The First Line of Defense Frontline Operating Units
Business Structural Risk
The general manager of each frontline operating unit is primarily responsible for this department's risk management and is fully responsible
for this department's risk management. The general manager may designate and specify the members of the management team who are To ensure the right to speak in the industry the Company strictly implements capital management
in charge of risk management (hereinafter referred to as "risk control leaders"). Risk control leaders should transform the Company's risk emphasizes the "iron discipline" of capital planning and pays attention to selecting business varieties
management system in their own business units while accepting the guidance and supervision of the Company's vertical risk management that are in line with the nature and strategy of the enterprise maintains the balance among business
functional departments and audit departments. varieties and requires both controlling concentration and ranking high in the segmentation field.
17 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 18Message from About Sustainability Governance Chapter: Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
of the Enterprise of the Nation Leading the Way for Green Innovation
Specific Business Risk In the specific business Xiamen Xiangyu focuses on the risk of our business model the risk of
customer credit the risk if commodity prices and risk of cargo right. COMPLIANCE MANAGEMENT
Management and
Control Compliance management is the foundation of long-term enterprise development. Xiamen Xiangyu has established a comprehensive and systematic compliance management system and developed the Xiamen Xiangyu Compliance and Governance Policy to ensure that
the Company's development stays within the bottom line and does not cross the red line ensuring the Company's steady development.*Dynamic deposit management
Commodities: price risk *Flexible settlement options (secondary pricing formula settlement)
*Scientific use of financial instruments
Risk Control Source: Customers:
Basics model risk credit risk Compliance The Company has established four organizational levels for compliance management: compliance
*High quality customers: The Company Purchase of goods and Sale of goods and The Company committee compliance manager headquarters compliance management department and
mainly manufacturing strictly avoids payment for goods recovery of payment establishes entry Management subordinate enterprises as well as three lines of defense for compliance committee decision-
customers with stable high-risk thresholds and
assessment Framework making joint-stock company management and subordinate enterprise implementation.demand and controllable businesses
credit such as upward mechanisms to
and downward Upstream Downstream dynamically track
*Commodity linkages suppliers customers creditworthiness
aggregation: strong circular trade and performance
circulation of bulk no flow of capabilities and
commodities easy to goods whole- Logistics and Logistics and match trading Compliance Fisk The Company identifies and evaluates the compliance risks associated with all of its business
liquidate easy to store in and whole- transport (own/ transport (own/ strategies. activities. On this basis it pays special attention to key areas such as trade control antimonopoly
high turnover out to reduce integrated) integrated)
exposure to risk Management unfair competition and anti-commercial bribery accurately identifies and responds to the
*Balanced Structure: points. aforementioned risks in key links such as system formulation business decision-making and
diversification in business Designated warehouse (owned/leased) production and operation and strengthens compliance awareness of key personnel such as
and product offerings
with varying cycles allows managers personnel in high-risk positions and overseas personnel to effectively prevent Logistics and transport (own/integrated)
for effective hedging and compliance rogue behavior.results in lower systemic
risk.*Resources: perfect logistics system strict access system Enhance Compliance The Company establishes an institutionalized and normalized compliance training mechanism *Constraint: separation of "business operation financial and logistic
·Three lines of defence organizes front-line employees and key employees to participate in compliance training on a rights"
·Front-line operations Logistics:lending rights risk Awareness regular basis ensures that employees understand and follow corporate compliance objectives *Inspection: "Irregular timing irregular personnel irregular positions"
·Headquarters risk control warehouse inspection and requirements and effectively grasps post-related compliance management knowledge
·Head office auditing *Pick-up: "the contracting party the paying party the invoicing party and compliance risk management capabilities.and the pick-up party are in agreement"
Over the course of the reporting period the Company organized special trainings such as
"Enterprise Compliance under Anti-monopoly Compliance""Interpretation of Futures and
Derivatives Law" and "Enhancing Compliance Awareness under Anglo-American Legal System"
Typical Strengthening the management for contracts and building a solid risk defense line to help employees improve their compliance awareness enhance their personal legal literacy
Case and prevent and reduce enterprise legal risks.Over the course of the reporting period in order to further strengthen the contract management capability of frontline operating units
and grasp specific business risks we conducted legal knowledge training to provide better support for contract risk management and
protect the legitimate interests of the Company. Typical
Case Conduct Anti-monopoly Training
The Corporate Risk Governance Center's Legal Affairs Department presented a lecture
on Corporate Compliance and Centralized Declaration of Operators under the New Anti-
monopoly Regulations and invited experts on this subject to interpret the new regulations.Invited experts systematically interpreted the key points and highlights of the Amendment
to the Anti-Monopoly Law in the context of the basic rules and compliance points in three
key areas: monopoly agreement abuse of market dominance and centralized declaration
by operators using typical law enforcement and judicial cases.The lectures were rich and in-depth in professional content and lively in atmosphere which
effectively enhances the understanding of the Anti-Monopoly Law of relevant functional
departments and business units of the Company and strengthens the compliance awareness
Special Training Site for Contract Management Personnel Anti-monopoly Training Site of relevant personnel.
19 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 20Message from About Sustainability Governance Chapter: Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
of the Enterprise of the Nation Leading the Way for Green Innovation
Key Performance Comprehensive Quality Management System
Compliance
Indicators Number (As of the end of December 2022) Unit
The Company establishes a system of responsibility for food quality and safety from the general manager to the
The Number of Organizational Compliance Trainings 42 sessions All Hands grassroots staff strengthens quality communication and collaboration between all departments and levels within
on Deck the enterprise and organizes regular training and education on quality management for all staff to ensure that every
employee grasps the basic knowledge and requirements of quality.The Number of Organizational Board Members
Executives and Senior Managers Participating in 1 sessions
Compliance-related Training.The Number of Compliance-related Complaints
0 cases
Received
The Company establishes quality inspection and monitoring mechanisms for each process of purchasing storage
The Number of Compliance-related Complaints End-to-end production inspection sales and service conducts regular checks on the quality of each process and collects
0 cases
Handled Control analyses and reports on quality data with the support of information systems provides timely feedback and takes
corrective measures when necessary.The Number of Regulatory Documents Related
to Risk Management Commodity Trading and 3 items
Compliance
The Company conducts strict screening and evaluation of suppliers selects suppliers with sound quality control systems and
Multiple performance capabilities conducts regular quality audits and evaluations of suppliers; benchmarks advanced enterprises in
Approaches the industry to reduce waste and variation and ensure stable product quality; establishes incentive mechanisms for quality
management including but not limited to setting up quality rewards and quality assessment to encourage employees to
MERCHANT MANAGEMENT actively participate in quality risk management.Through internal management improvement and external resource empowerment Xiamen Xiangyu is collaborating with its partners to
contribute to the upgrading of the industry and continuously create sustainable social value and maximizing corporate value.Empowering Customer Development
Xiamen Xiangyu is committed to helping customers reduce costs and increase efficiency promoting industrial transformation and upgrading
Customer Relationship Customer satisfaction is the important foundation for sustainable business development. and improving market efficiency through the "four-in-one" supply chain integrated service platform. Through scale empowerment
Xiamen Xiangyu adheres to the strategic mindset of "basing on the supply chain serving the
Management management empowerment financial empowerment and logistics empowerment the Company provides services such as raw material industrial chain and creating the value chain" and takes advantage of its own strengths to procurement and supply finished product distribution logistics and transportation for small and medium-sized manufacturing enterprises.continuously provide customers with quality and diverse products and services and grow
together with them.Typical Multi-model transport provides relief to downstream customers
Case stabilizes production in the aluminum industry chain
Delivering High-quality Products
Based on the pain points of the industry such as the large number of production links the large physical span and inconvenient circulation
For standardized industrial products such as ferrous metals aluminum stainless steel new energy and coal the quality requirements of each production link Xiamen Xiangyu relies on its large span and multi-link multi-model logistics service capability to link up the
for the products are included in the purchase agreements with suppliers to ensure that the products delivered to customers meet the whole industry chain such as bauxite ore from overseas alumina from Henan and Shandong electrolytic aluminum from Xinjiang and
common quality standards of the industry. Inner Mongolia and aluminum products from the eastern coast and provide guarantee for the supply of raw and auxiliary materials for
each manufacturing link. At the beginning of 2022 when the central region was blocked due to the epidemic an electrolytic aluminum
company in northwest China faced the risk of "chain breakage" due to the lack of upstream materials Xiamen Xiangyu integrated its
logistics resources optimized its transport routes and gave full play to its own multi-model transport advantages to protect the company's
Our subsidiaries have successfully implemented ISO 9001 quality management systems and HACCP food safety management systems production "lifeline".demonstrating effective operational practices and ensuring high standards of quality and food safety.
21 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 22Message from About Sustainability Governance Chapter: Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
of the Enterprise of the Nation Leading the Way for Green Innovation
Supplier Management Xiamen Xiangyu prioritizes the sustainable development of the industrial and supply chains
performs life cycle management for suppliers and prioritizes environmental and social DATA SECURITY MANAGEMENT
responsibility in all aspects such as access and evaluation. The Company establishes the Supply
Chain Development Department establishes and improves the cooperation mechanism with A large number of important data assets are generated and stored in the daily operation process as a result of the planning and promotion
partners continuously improved the ability to connect upstream and downstream customers in of the Company’s digital construction and the office business processes turning to online paperless and intelligent. Thus data security has
the industrial chain and contributes to the development of a sustainable supply chain. evolved into an essential component of the Company's smooth operation. Xiamen Xiangyu places a high value on data security management
and developed the Xiamen Xiangyu Information Security Management Policy with the policy of "prevention first keeping the bottom line in mind
and continuous improvement" to continuously improve the information security management system ensure the confidentiality integrity and
availability of information and ensure the Company's business sustainability. The Company established an information security management
framework with the Information Security Management Committee as the highest deliberation and decision-making body the Information
Security Working Group as the executive body and the information security leaders of subordinate enterprises as the final implementation in
terms of information security management organization construction. Members of the Information Security Management Committee collaborate
with members of the Digital Transformation Committee to ensure information security during the Company's digital transformation.Responsible Value Chain Initiative Focusing on the risk of data leakage and destruction that may occur in all aspects of the data life cycle the Company has adopted systematic technology and management schemes to ensure the safety and reliability of the data life cycle. Over the course of the reporting period the
Company found no business data security risk events.Construct a management network with business processes as the latitude and post
nodes as the longitude.System The Company establishes a sound management system and clarify the requirements Stage Risk Countermeasure
guarantee for environmental protection of suppliers safety in production and protection of
employees' rights and interests in each link so as to provide a basis for supply chain Data acquisition ◎ Data classification
management.◎ Data encryption storage
Data storage ◎ Data backup recovery
◎ Anti-blackmailing
◎ Data transmission encryption Full-cycle user rights
◆ Client leakage: the end user sends out important
management:
Data documents with sensitive information. ◎ Data leakage prevention
transmission ◎ Identification ◆User authentication
◆ Internal personnel factors: internal personnel
◎ Network isolation ◆ Personnel audit
Information Collection: the Company takes labor disputes safety production penalties maliciously modify data query sensitive data in ◆ Isolation of Data Access
and other matters as long-term concerns and assesses supplier labor management batches maliciously destroy the database or query ◎ ID authentication Permission
based on open resources regularly; If the supplier is found to have malicious fraud sensitive information.invasion of privacy or unfair competition it will be included in the list of prohibited ◎ Access control ◆ Isolation of Application
cooperation. ◆ Business code factor: data leakage caused by ◎ Database operation and Permission
Public Sentiment Monitoring: the Company establishes public opinion monitoring Data usage business code defects. maintenance control ◆ Isolation of Storage
mechanism continuously pays attention to the trends of suppliers in environmental ◎ Static desensitization Permission
Routine protection and lists negative information on environmental protection as highly ◆ Third-party factors: the development partner ◆ Isolation of Data
management concerned risks. The evaluation results will affect the cooperation between the
◎ Data encryption
leaked the test data; basic service provider leaks Manipulation Permission
Company and suppliers. managed data. ◎ Data leakage prevention
Field Investigation: the Company conducts face-to-face investigation and exchange
◎ Data encryption
evaluate the supplier's operation and working environment and pays attention to safety Data exchange
production and the protection of employees' rights and interests. For manufacturing ◎ Digital watermark
suppliers the Company puts forward clear requirements for environmental protection
issues through the feedback list and pays attention to the compliance of production
◎ Prevention of recovery
and pollution prevention equipment and technology during field visits to ensure that Data destruction
suppliers fulfill their responsibilities. ◎ Process audit
23 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 24Xiamen Xiangyu is committed to integrating resources including
distribution channels logistics transaction data etc. It provides
comprehensive supply chain solutions for customers aiming to facilitate
the high-quality transformation of the bulk supply chain industry.SERVICE CHAPTER
Pursuing Profit for the World's Well-being Servicing
for High-quality Development of the Nation
25 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 26Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of World's Well-being Servicing for High-quality Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise Development of the Nation Leading the Way for Green Innovation
XIANGYU Service Model XIANGYU Service Model
BUSINESS MODEL Phase2.0: Complete Industry Chain Services Phase3.0: Industry Chain Operation
Xiamen Xiangyu continues to provide "all-around multi-level and wide-ranging" services while focusing on the core demands of Procure Finance Supply Chain
Raw Material Services Providers
manufacturing enterprises' customers. Xiamen Xiangyu strives to be at the forefront of the industry in terms of business model Transport Distribute Circulation
leadership by enriching the commodity mix optimizing the customer structure iterating the business strategy and improving the profit Supply Chain ServicesStore Consult XIANGYU
structure etc. Leading Area
Supply Chain Service
Clients amid Chain Manufacturing
Process with
empowered value
Link 1 Link 2 Link 3 Link N
Supply Chain Services Xiangyu
Commodity Mix Cut-in AreaProducer A Producer A Producer A Producer A
Producer B Producer B Producer B Producer B
Supply Chain Services
To meet market demand and align with the Company's business philosophy the product must possess high liquidity be highly standardized for Manufactured
Producer C Producer C Producer C Producer C
easy storage and experience high demand with a long supply chain within the industry allowing for comprehensive services across multiple Goods Supply Chain
Circulation Services Providers
levels. The Company's primary focus is on the bulk commodities market where it operates in four main categories: metallic minerals agricultural XIANGYU
products energy and chemicals and new energy. Its diversified business scope is reflected in its six core products: ferrous metals aluminum Leading Area
stainless steel grains coal and new energy.XIANGYU Service Mode
Phase4.0: Digital Intelligence Services
Customer Structure
Clients amid Chain
The Company has consistently improved our customer structure by prioritizing manufacturing enterprise customers and investing in service Link 1 Link 2 Link 3
offerings. As of 2022 manufacturing enterprise customers represent over 50% of our customer base and contribute 60% of our commodity
business. Particularly noteworthy is the fact that they make up over 90% of our customer base in the new energy supply chain and more than Producer A Producer A Producer A
60% in the black metal stainless steel aluminum and coal supply chains. Additionally we provide services to more than 50% of customers in the Producer B Producer B Producer B
grain and raw materials supply chain. Producer C Producer C Producer C
Business Strategy Needs Integration
XIANGYU Digital Intelligence
Services System Combos Quality Process Credit mgt. Logistics Risk mgt. Inv. mgt.Traditional Supply Chain Service Model XIANGYU Service Model AI Tech Module
Connecting multi-party while serving single link Phase1.0: Integrate needs and provide comprehen
Algorithm Module optimization
Data Platform Module Region Quality Replacement Replacement Integration Optimization
Supplier A Supplier B Supplier C Supplier D Supplier A Supplier B Supplier C Supplier D
Customized Supply Chain Services Solutions
Procurement Transport Warehousing Financing Distribution XIANGYU Supply Chain Comprehensive Service Profit Model
Supplier A Supplier B Supplier C Supplier D Supplier E Procure Transport Store Finance Distribute Consult
The Company's profit model is built around generating revenue from services and leveraging economies of scale. This strategy provides a robust
foundation for stable profitability. By expanding our presence in new regions customer segments and commodity categories as well as offering
a wide range of services we are able to consistently improve our business performance. We also take advantage of price differences to maximize
profitability during commodity price fluctuations.Producer A Producer B Producer C Producer D Producer A Producer B Producer C Producer D The Company sources goods directly from upstream suppliers in order to optimize our supply chain and reduce costs while simultaneously
increasing service revenue. By collaborating with other industries we are able to achieve steady growth in scale and expand our revenue
potential. Our extensive customer and logistics network combined with in-depth research on industries and commodities enables us to
manage positions in a scientific manner resulting in increased revenue from price differentials.
27 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 28
Raw
Material Production
Raw
Material ProductionMessage from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of World's Well-being Servicing for High-quality Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise Development of the Nation Leading the Way for Green Innovation
Typical Smart Logistics Service PlatformOperation Mode of Grain Industry Chain
Case
The Company has established a full-service layout that covers all aspects of the production process from pre-production to post-production
including seed and fertilizer services agricultural planting grain storage logistics transportation raw material supply and grain processing. Process Automation Online Service
In the production process with the support of seven major grain procurement warehousing logistics platforms and a comprehensive North-
South transportation logistics service system the Company leverages its professional operational advantages to reduce operating costs and Paperless operation in the warehousing process has been The electronic signature platform has been introduced
increase efficiency. In terms of distribution the Company is dependent on seven key platforms for grain purchase storage and logistics realized with the help of mobile scanning devices and to realize the digitalization and traceability of the whole
alongside a logistics service system for transporting grain from the north to the south. By leveraging its operational specialization and scale intelligent management of the entire process of "storage document circulation.benefits across all segments it significantly reduces marginal operating costs and enhances operational efficiency and profit levels.inventory and delivery" has been realized.In the distribution process the Company has established soybean pressing plants and provides comprehensive supply chain services Using blockchain electronic warehouse receipts to ensure the
including soybean procurement sales of soybean oil and meal and logistics transportation to enhance its bargaining power and optimize authenticity of warehouse receipts and signing intentions
its capital turnover rate. and improve credibility and circulation efficiency.Over the course of the reporting period the Company supplied over 10 million tons of raw materials annually to large-scale breeding feed
and deep processing enterprises such as Wen's Foodstuff Group Co. Ltd. Shuangbaotai Group Co. Ltd. Haida Group Co. Ltd. and Yihaikerry
Group Co. Ltd. making it the largest corn industry chain service provider in the A-share market.Industry
Pain Points Xiangyu Solution
The spatial distance Agricultural industry and Internet platform
1 between the place where food is produced and where it Before production In production After production Processing End customers
is consumed is long
2 The main body of grain production is generally small and scattered
Seeds fertilizers Planting (including Acquisition screening drying Soybean crushing
3 Specialization and agricultural machinery order planting) warehousing (including national reserves) concentration complexity of food agricultural materials etc transportation distribution etc fermentation etccirculation
Procurement and sales Logistics system Capital efficiency Commodity value
channel integration optimization improvement mining
Operation Mode of Grain Industry Chain
THE TRANSFORMATION OF THE COMPANY'S
DIGITAL INTELLIGENCE
From a strategic perspective the Company places a high value on digitalization construction leveraging its massive transaction data
extensive customer resources and rich application scenarios to actively transform towards digitization. Guided by the digitalization and
intelligence strategy the Company promotes the implementation of innovative projects such as smart logistics platforms "YuLianTong" Visual Representation of Property in Goods
digital supply chain service platform and an industrial-level internet platform for agriculture. Through technological innovation we aim
to achieve higher levels of economic productivity. Full-process management of goods：The Company employs technologies such as blockchain and AI-driven Internet of Things to
construct a digital warehouse. Moreover it establishes an intelligently networked platform built on a 'cloud edge and endpoint'
framework that amalgamates Internet of Things edge computing and sensory equipment. This setup enables the comprehensive
management of goods throughout all stages including storage delivery and stocking.Smart logistics platform Monitoring of weighthouses：The unattended weighthouses are monitored in real time by using 3D digital twin technology so as
By utilizing technologies such as the Internet of Things (IoT) big data and artificial intelligence (AI) the Company has accelerated the real-time to realize the dynamic tracking of grain harvest in each grain base.monitoring and optimization of the entire logistics process including transport and warehousing management and promotes real-time data
Cargo rights control: The warehouse inspection process and data are stored through cloud technology by using unmanned aerial
sharing across all segments of the supply chain. This improves data accuracy and transparency enabling customers to predict demand control
inventory reduce out-of-stock risk quickly respond to market changes and enhance competitive advantages. vehicle (UAV) warehouse inspection video surveillance and identification infrared grating and other technologies so as to realize
real-time and previous inquiry and fully guarantee the safety of cargo rights.
29 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 30Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of World's Well-being Servicing for High-quality Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise Development of the Nation Leading the Way for Green Innovation
Typical
Case Xiamen Xiangyu Express is closely related to the pulse of the times and builds a digital warehouse Core Resources/Capabilities of Xiamen Xiangyu
Xiamen Xiangyu Express is a Xiamen Xiangyu-owned integrated logistics company. Xiamen Xiangyu Express has
consistently invested resources to build a smart logistics platform solve industry pain points and improve service
experience with the goal of addressing the problems of complex and time-consuming traditional warehousing The ability to consolidate industrial resources and our operational ability constantly to improve.management processes inefficient traditional service and difficult control of goods rights.All-around Resource Over the course of the reporting period the business volume of ferrous metals aluminum
Integration Ability stainless steel grain thermal coal and new energy materials were 76.75 million tons 21.74 million
tons 16.06 million tons 14.46 million tons 53.96 million tons and 210000 tons respectively.The application rate of electronic signature platform reaches 95%.Intelligent
The construction of automatic weighthouse can shorten the weighing time of vehicles
Process
entering and leaving the site by 50% and 75% respectively and realize information Established a multi-model transport logistics system of " Road Transport Rail Transport Water
synchronization. Transport and Warehousing ".Highway: There are over 1300 self-owned vehicles and 57000 social vehicles with
an annual transportation capacity of over 9 mill ion tons.Build an internal and external interconnection platform. Railway: It operates 14 railway freight stations supporting 47 special railway lines more than 2.2
Online million square meters of container yards and warehouses and more than 25000 self-contained
Service Customers can view the warehouse goods and inventory data through multiple ways Multi-level containers with an annual shipping capacity of over 35 million tons.Logistics Resource
such as on PC side WeChat official account and APP.Allocation Water transportation: We established strategic partnerships with high-quality
port and shipping enterprises under China Merchants Port Shandong Port
Build an Internet of Things (IoT) platform to realize a "visible manageable and in- COSCO Marine Qingdao Port Lianyungang Port and Rizhao Port and integrated
time warning" cargo rights control mechanism. transportation capacity to achieve an annual transportation capacity of more than
Visualization of 25 mill ion tons for domestic coastal areas and the Yangtze River Basin.Cargo Rights It is equipped with all-weather uninterrupted real-time monitoring service and Storage: our storage capacity exceeds 13 mill ion tons equipped with 9 special
electronic fence function to provide customers with all-round control and protection railway lines; 45 self-owned and chartered warehouses with an area of over 1.5
of cargo rights. mill ion square meters; 8 yards covering an area of over 450000 square meters.Credit risk:
Customer's credit standing: check customer's credit standing by combining customer operation
transaction performance and credit data.The transaction flow: the application of blockchain and electronic warehouse receipt can be
traced back to the whole process.Market risk:
Commodity screening: combined with the main business choose the category with good
Intelligent Storage Delivery and Freight Forwarding Internet of Things Unified Monitoring Platform liquidity relatively stable price fair market price and comparative advantage.Process management: dynamic management marking and early warning and real-time
Digital Risk perception of market price fluctuations.Management Commodity disposal: depending on the Company's bulk supply chain operation and
System
marketing channel system goods can be quickly disposed and realized."YuLianTong" Digital Small and medium-sized businesses have long faced the problem of "difficult financing
expensive financing and complicated financing" due to a lack of effective collateral. It is Legal risks:
Supply Chain Service difficult for financial institutions to assess the creditworthiness of small and medium-sized The ways of risk control include the formulation of contract text clauses in the whole
businesses and the transaction targets are "incomprehensible uncontrollable and difficult to process the guarantee of real rights warehouse receipts and the validity of electronic
Platform handle" making it extremely difficult to control the risks for banks. signatures.Xiamen Xiangyu is leveraging our comprehensive resource integration capabilities multi-
dimensional logistics resource layout and digital risk management system has created the Operational risk:
"YuLianTong" digital supply chain service platform. The Company serves as a trusted data Prevent operational risks through mechanism control system guarantee and digital
bridge between banks and clients helping financial institutions control risk while broadening management.financing channels for small and medium-sized enterprises.
31 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 32Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of World's Well-being Servicing for High-quality Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise Development of the Nation Leading the Way for Green Innovation
Warehouse receipt pledge In the upstream
In order to strengthen our position in the grain industry we have formed a strategic alliance for grain planting and launched the
"Xingxing Xiangnong" app offering farmers essential services like agricultural material procurement sales and technology consulting.Cargo regulatory Digital asset certificates These measures help us to control first-hand sources of grain and expand our variety while addressing common industry problems.and risk "YuLianTong" Digital Supply (electronic warehouse
management Chain Service Platform receipts etc.)
Yucangrong Yucairong Yuturong
Funding side Platform access Platform service Customer side In the midstream
fee
Our Company has strategically built a grain warehouse point alliance by consolidating various third-party storage nodes across multiple
regions. This approach has significantly increased the density of our grain procurement network expanded our coverage and allowed
us to penetrate deeper into the industry. By addressing long-standing issues such as selling and warehousing difficulties this alliance is
poised to serve a wider clientele across Heilongjiang to Jilin Liaoning and beyond.Financial support
"YuLianTong" Digital Supply Chain Service Platform
In the downstream
Key Performance:
The Company established a highly efficient alliance within the grain circulation industry. Through the implementation of our North to
South Grain Diversion logistics service system we were able to seamlessly reallocate a diverse range of high-quality raw grains to meet
the demands of feed livestock and deep processing companies in various regions. This innovative strategy effectively addresses the
industry's challenges related to time and location discrepancies between production and consumption ultimately benefiting our clients.Nearly90billion yuan 0
Over 1.1billion yuan
Front Section
"YuLianTong" digital supply chain Bad debt rate of Middle Section Later Section
Grain Planting Industry Alliance Grain Warehouse Alliance Grain Circulation Industry Alliance
service platform "YuLianTong" digital supply
has obtained special credit for chain service platform in
customers In 2022"YuLianTong" digital supply 2022
chain service platform Grower XIANGYU-owned Warehouses Grain Storage
helps customers obtain the total Cooperative Agent Grain Producer Grain Logistics
amount of a cumulative credit usage
Farm
Logistics Provider
Agricultural Materials Grain User
Provider
Financial Insurance
Agricultural Machinery Financial Futures InsuranceIndustrial-level Internet Platform for Agriculture Provider InstitutionGovernment Third-party Warehouses Data
Company
Food holds a vital place when it comes to ensuring national security and the welfare of people. The Company has dedicated itself to
aligning with the national food security strategy and has ensured the growth of traditional agriculture through the integration of digital
technologies. We strive to enhance the efficiency of grain circulation and secure the domestic food supply chain while contributing to Industry-level Agriculture Internet Platform
the ongoing transition towards agricultural modernization. By doing so the Company fortifies the "ballast" of national food security.
33 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 34Xiammen Xiangyu places great emphasis on providing a conducive
and secure work environment for its employees while simultaneously
focusing on their career development and growth opportunities. The
Company is committed to achieving mutual progress wherein employees
and the enterprise grow and prosper together. In addition fulfilling
corporate responsibilities is of utmost importance to Xiammen Xiangyu
and hence we regularly organize staff to participate in voluntary and
charitable activities aimed at making significant contributions towards
building a better society. SOCIAL CHAPTER
Cooperate and Benefit Mutually towards
a Win-win Situation
35 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 36Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
PROTECTION OF
Employee Structure
EMPLOYMENT RIGHTS
The sustainable development of any enterprise largely depends on its workforce and at Xiamen Xiangyu we recognize the invaluable Indicators Number Unit
(As of the end of December 2022)
contribution of our employees towards achieving our goals. The Company’s recruitment policies prioritize qualifications and not just
academic credentials and we ensure that fairness and equality prevail in our hiring training and retention processes. We offer equal The Number of Employees in Xiamen Xiangyu Headquarters 445 persons
opportunities to all employees regardless of their background enabling them to realize their career aspirations and excel in their
roles. Furthermore our continuous efforts in enhancing our corporate culture employee benefits and upholding health and safety The Number of Employees in the Main Subsidiaries 7746 persons
management systems create a warm and nurturing work environment promoting employee happiness and wellbeing.Total Number of Employees 8191 persons
By Gender
The Number of Male Employees 5357 persons
Basic Rights and Xiamen Xiangyu strictly abides by labor-related laws and regulations formulates rules and 2834regulations such as Employment Contract Management Policy Compensation Management The Number of Female Employees persons
Interests PolicyAttendance and Leave Managementestablishes a standardized labor relations management system and fully protects the legitimate rights and interests of all employees. By Age
The Company pays special attention to the protection of the rights and interests of female 30 and Under 2813 persons
employees. In order to prevent the occurrence of sexual harassment the Occupational
Ethical Risks Management Policy was revised over the course of the reporting period clearly
stipulating that "employees must refrain from sexually harassing colleagues violating family Between the Ages of 30 to 40 3013 persons
ethics or social norms or breaking the law and should consciously purify their circle of friends
social circles and life circles." At the same time in the company's Special Collective Contract 40 and Above 2365 persons
for the Protection of Special Rights and Interests of Female Employees the provisions on the
protection of special rights and interests of female employees are further clarified to effectively By Academic Qualifications
safeguard the legitimate rights and interests of women.Doctor Degree 5 persons
Typical
Case Female Employee Benefits Master’s Degree 658 persons
According to the Measures for the Female Employees Management Measures three Bachelor’s Degree 3585 persons
periods of leave (pregnancy childbirth and lactation) shall be implemented accordingly.College Degree 1553 persons
Implement the system of regular physical examination for female employees and organize
physical examination for female employees every year.Vocational High School and Technical Secondary School 580 persons
Create exclusive services such as psychological care courses for female employees rest
and breastfeeding rooms for female employees and summer custody classes etc. High School and Below 1810 persons
By Region
The Number of Employees working in Mainland China 8120 persons
The Number of Employees Working in Hong Kong Macao
71 persons
The company treats employees with different nationalities races ethnicity genders religious beliefs and cultural backgrounds equally. In the Taiwan and Overseas Regions
regular interview process according to the characteristics of different positions at different levels the combination of selection methods such
as line test professional evaluation personality evaluation and background investigation is used to evaluate the candidates in an all-round and
scientific way and the interviewer's talent selection ability is improved by means of interviewer handbook interviewer training and certification
so as to minimize the influence of interviewer's subjective factors and provide a level playing field for the interviewer according to objective and
scientific evaluation methods.
37 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 38Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
Compensations Xiamen Xiangyu pays attention to improving the salary and welfare system and provides Typical better living guarantee for employees by establishing a reasonable salary and welfare Case Encounter something beautiful in Xiamen Xiangyu and spend the holiday together.and benefits structure and standardized salary and welfare standards. The salary of employees in the Company mainly consists of basic salary salary based on the job position salary based on At the Lantern Festival At the Dragon Boat Festival At the Mid-Autumn Festival
the year of service and bonus. In terms of salary adjustment mechanism the Company's
implements annual salary fixing plan and advocates the distribution system of "being able to
go up and down and changing salary from post to post" which not only promotes potential
employees with both ability and political integrity but also adjusts employees who are really
unsuitable for posts to help employees find the most suitable positions for them. At the same
time the Company continues to carry out salary benchmarking to keep employees' income
competitive in the same region the same company the same position and the same ability
and repay employees' contribution to the enterprise. The Company also provides employee
benefits conducts internal and external benchmarking every year and continuously improves
the employee experience. In addition to basic social insurance the Company provides housing In the form of cultural temple fairs the In the name of family banquet employees The Company focuses on promoting
accumulation fund diligent leave commercial insurance paid leave and other conventional Company integrates essential elements teamed up to cook and jointly created the spiritual connotation of Minnan
benefits transportation subsidies lunch subsidies holiday subsidies heating and heatstroke of traditional culture such as the a gourmet feast inviting employees' people's "dedicate yourself and you
prevention subsidies communication subsidies employee restaurants employee gyms health display of lanterns the engagement families to get together tasting delicious will win". Through cultural puzzles and
checkups new employee dormitories and other benefits to achieve full coverage of living in lantern riddles the art of window food and feeling the warmth and beauty Mid-Autumn Festival "platter" we can
benefits. At the same time each overseas platform company has been established a welfare paper-cutting the creation of sugar of Xiamen Xiangyu family together. feel different "dedication" culture in
system in line with local policies to provide protection for locally recruited staff. figurines the pastime of hoop tossing traditional folk customs.In order for employees to better share the achievements of enterprise development and and the performance of dragon
realize the common development of individuals and organizations the Company launched dances. This allows the conventional
equity incentive plans in 2020 and 2022 respectively with the total amount of incentives celebration to be adorned with
reaching almost 8% of the total share capital and the incentive targets covered more than contemporary characteristics crafting a
1000 core managers and front-line business team members. millennium-spanning cultural odyssey.
Play in Xiangyu
Grand Slam Series
of Employee Benefits
The Company advocates the cultural concept
of "Happiness at Work Health in Life". We
Eat in Xiangyu
Grand Slam Series of Employee are seizing the Sports Year of Xiangyu Group
Benefits as an perfect opportunity to bolster our
Live in Xiangyu employee interest groups. We have actively
Grand Slam Series competed in Xiangyu Group's basketball
of Employee Benefits football badminton and table tennis and
other competitions. Moreover during breaks
we actively promote invigorating exercises
Examples of Employee Benefits like "office aerobics" and "eye exercises". Our
aim is to encourage all employees to cultivate
healthy exercise habits and create a relaxed
Employee care In order to help employees relieve their psychological stress Xiamen Xiangyu launched the and pleasant working atmosphere.Employee Psychological Assistance Program (EAP) in 2020 providing employees with different
forms of psychological care services including 24-hour psychological consultation hotline
group counseling one-on-one counseling and mental health talks. At present caring services
have been provided to 162 employees at different levels to improve their mental health Friendly Football Match
Xiangyu launched the Employee
Psychological Assistance Program conditions. Over the course of the reporting period the Company also launched a special
(EAP) since 2020 program of psychological care and counseling for senior managers in which 120 investment
enterprise executives participated effectively helping the senior management team to relieve Xiangyu pays special attention to the relief
The program has provided care the psychological pressure. and assistance of employees in difficulty.services to employees at different Through the Xiangyu Group's Spring Rain
levels cumulatively The Company's trade unions built a brand of "Encounter something beautiful in Xiamen Fund project the Company sets up a year- Key Performance
Xiangyu" series of activities combined with Xiamen Xiangyu corporate culture and
162 round fund-raising channel and organizes incorporated elements such as temple fairs food puzzles etc. and successively carried out an annual "one-day donation" activity and The Amount of Subsidies The Amount of Maternity and the Lantern Festival cultural temple fairs the reading of workers' pleasure and the theme special relief projects and accepts employee Provided by the Labor Union Marriage Congratulations Allowances
activities such as "Dedicate yourself and you will win" to enrich employees' spare time. We will donations on a voluntary basis. All donations for Employees in Need Provided for Female Employees
2022 Senior Managers Care actively promote Xiamen Xiangyu's "home culture" convey the company's humanistic care and
Counseling Program Served are used to sympathize with and subsidize effectively improve the sense of employee well-being satisfaction and acquisition through on-the-job employees and retired employees
120 the activities of expatriate employees' home visits traditional festivals of overseas companies 24.410K CNY 11.4410K CNYwhose families are in difficulties due to major family open days and Dragon Boat Festival family banquets. Over the course of the reporting diseases accidents and other reasons.
period we have visited around 73 employees and their families.
39 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 40Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
Occupational The Company always adheres to the core value concept of "safety first environment first Xiamen Xiangyu organises its Xiamen Xiangyu has actively organized its subsidiaries to conduct safety drills and accumulating peopleoriented and complete equipment" and insists the safety management policy that is subsidiaries to conduct safety drills practical experience in emergency response training such as fire evacuation fire accident
health and safety "peopleoriented prevention first risk identification and pre-control creating a harmonious emergency flood prevention fire emergency and confined restricted space escape and other and safe environment and taking the road of sustainable development". We will continuously Total investment in 2022 for the
elimination of safety hazards in emergency exercises. Over the course of the reporting period the Company spent a total of
improve the safety management system ensure the occupational health and safety of production activities 7.3572 million yuan to eliminate safety hazards in production activities and to provide employees
employees and resolutely put an end to the occurrence of dangerous situations such as with a safe working environment.prioritising speed or economic benefits over safety.The Company strictly complies with relevant laws and regulations formulates and publishes the 7.3572 Key Performance
Occupational Health Safety and Environmental Management Manual instructs subsidiaries million yuan
involved in production to set up occupational health safety and environmental management Indicators Number Unit
systems improves the management of occupational health safety and environmental
Coverage Rate of Annual Occupational Disease Medical
implements the safety production responsibility system for all employees clarifies the safety 100 %
responsibilities of safety production managers at all levels and effectively prevents production Check-up for Employees
safety accidents. Carry Out Occupational Health and Safety Training 371 Sessions
The company promotes the construction of the safety culture and by customizing safety
notebooks the annual safety priorities are "embedded in" the inside pages of the notebooks The Number of Employees Participating in Occupational 17045 Person-times
reminding staff to firmly establish the concept of "safety first" at all times. Over the course Health and Safety Training
of the reporting period the Company implemented good operating practices and practical
cases submitted by its subsidiaries such as the improvement of a gas cylinder storage Coverage Rate of Occupational Health and Safety Training 100 %
cabinet a mobile leveling scraper a sliding conveyor belt and an environmental protection The Investment Amount of the Company in Purchasing
transformation of a drying tower served as a model for other subsidiaries effectively 140 10K CNY
Occupational Injury Insurance
improving the overall safety production level. With the help of rich training content and diverse
organizational forms the Company also set up a seminar for safety mainstaysand through Note: Data scope includes Xiamen Xiangyu and its subsidiaries operating in production processing
brainstorming it formed ideas and suggestions to improve management and improved the warehousing and logistics businesses.systematic and professional level of safety mainstays' management ability.Typical
Case Keep in mind the bottom line of safety production and create a safety culture space EMPOWER EMPLOYEES
Xiamen Xiangyu has established a hierarchical classified three-vertical and three-horizontal talent training system covering three
Xiamen Xiangyu Shengshi Container Co. Ltd. (hereinafter referred to as "Xiangyu Shengshi") a subsidiary of Xiamen Xiangyu has made
groups of senior high school students offering various special training programs for employees in the new term during the term ofthe concept of "safety first" deeply rooted in employees” minds and gradually formed 10 safety cultures of Xiangyu Shengshi (referred
to as "10 rules of Shengshi") through the establishment of the systematic and standardized safety management system and effectively office and during the transition period and relying on Xiamen Xiangyu Business School to carry out comprehensive management
improving the personal safety protection ability of employees and the level of safety protection of all the staff. training courses such as executive course enterprise management course and youth cadre course as well as special training courses
such as functional senior management course executive delivery skills enhancement course human resources special course risk
control special course equipment management special course etc. through classroom teaching external reality study visits internal
mobile classrooms Xiamen Xiangyu forums and other diversified teaching modes to continuously empower employee growth."Three-Horizons Exectutives Enterprise Management Training Training for new executives Momentum: Careerism Class (Enterprise Management of the group Class)
/ Corporate Culture Senior Management
and Three-Verticals" / Strategic Thinking Rotational training program for Training Class (Senior / Overall Planning / Training for new executives incumbent executives Management Class)
Change and Innovation / of joint-stock investment
Hierarchical Talent Functional&Business Executive Organization enterprises Special Ability Improvement Class
Training System Middle leadership Youth Cadre Training Class Insight: enterprising/ (Youth Cadre Class)
global vision/team New Middle Level Functional Executive Preparatory
building/communication Comprehensive Capability Class
and coordination/risk Improvement Program (MTP)
management Business Executive Preparatory On duty middle level rotation Stock Lecture Hall
training class Class
”Xiang Xinli "Management
Basic level Trainee Job Qualification Series
Skills improvement: School Recruitment New Training+Job Exam
cultural integration/ Employee Happy Growth Management Preparation
execution ability/ Training Camp Class
professional competence/ Social recruitment new
employee integration Stock Lecture Halljob holding ability
Xiangyu Shengshi Safety Cultural Space training
Hierarchy&Growth Stage New term During the term of office Turnaround period
41 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 42
Administrative Training
Class
Human Resources
Training Class
Financial Manager Class
Logistics Manager Class
Operations Manager Class
Business Elite ClassMessage from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
Personal Value Xiamen Xiangyu offers employees a dual-channel promotion path of professionalism and
Highlight Practice Creating a Good Internal Training Atmosphere management broadening their development path. The Company actively promotes cross-line
Realization rotation exercise of functions and businesses through job analysis and personnel evaluation
prior to staffing dynamically optimizes and configures personnel assists employees in finding
We optimize the management system and rules of internal trainers organize internal trainer certification activities select and motivate the most matching positions and clarifies the future career planning direction. The Company
more internal trainers and pass on organizational best practices to more employees. also promotes cadre rejuvenation and facilitates construction of young talents to a strategic
level and supports high potential talents to achieve their dreams.Emphasis should be placed on teaching by senior personnel and senior personnel should be arranged for new employees to teach
and study so as to enhance the teaching ability of relevant personnel and promote the growth of young employees.Full Employment In order to implement the decisions and arrangements of the CPC Central Committee and State Council's on stabilizing and ensuring employment and to implement the work
arrangements of the Xiamen Municipal Party Committee and Municipal Government over
the course of the reporting period the Company launched a new employer brand"Heart
Encounter Achievements in Action" actively assisted college graduates find jobs inviting more
Meanwhile in 2020 the Company developed and built an online learning platform to assist employees at all levels in continuously improving than 30 universities nationwide totaling over 300 students and faculty members to gather in
their work ability. The platform offers five distinct courses including corporate culture leadership team management general literacy and post- Ludao. They felt the enthusiastic atmosphere of talent attraction and support in Xiamen and
professional ability and over 1000 internal development and external introduction courses have been launched fully meeting the independent established a close connection between the students employees and the growth success
learning needs of employees in various positions. In oversea platform companies in Singapore Indonesia the Company regularly organizes and achievements of the Company. This initiative aims to provide college graduates with
employees to participate in training and study organized by local institutions to improve their professional skills and encourages overseas smooth channels for growth and a platform for their development.employees to actively participate in the existing curriculum resources in Xiamen Xiangyu Business School and online learning platform as well as
strives to provide diversified training courses for employees worldwide.In order to promote the internationalization and digitalization and intelligence strategy the Company organizes employees to carry out supporting
international business and cultural training and helps employees in the import and export business to improve their business ability and language
skills through training and examination of import and export series knowledge and operation practice as well as Indonesian and Indonesian
cultural training. In terms of digitalization and intelligence the company sorts out the goals and training priorities of digitalization and intelligence
for employees at all levels and adds related courses to help employees keep up with the digital age and add more possibilities for their future
careers.Employer Brand Conference Site
The Company also pays special attention to the employment of disabled people veterans
Logistics Manager Training Program Administrative Managers Training Program and other special groups and actively creates relevant positions to facilitate the employment
of disabled individuals. In addition veterans are given priority consideration for specific job
openings.Key Performance
Honor List Zhaopin China Annual Best Employer Campus Recruitment Case Award
Indicators Number Unit
(As of the end of December 2022) (May 2022)
Employee Training and Development 147626 person-times Liepin Fujian's Extraordinary Employer of the Year (November 2022)
Training for Male Employees 94458 person-times Zhaopin China's Top 100 Employers of the Year (December 2022)
Training for Female Employees 53168 person-times Internship College Students's favorite employer of the year (December
Average Training Time per Employee 38.4 hours 2022)
Average Training Time per Male Employee 39.8 hours Excellent Internship Base of Xiamen University of Management
Average Training Time per Female Employee 35.4 hours (December 2022)
43 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 44Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
Employee The Company continues to conduct satisfaction surveys and to gather feedback from employees regarding their perceptions of company's culture policies management and team CORPORATE SOCIAL RESPONSIBILITY (CSR)
Communication dynamics over a certain period of time. The Company analyzes and interprets the survey data
promptly identifies problems related to the system processes personnel management and Xiamen Xiangyu adopts the "Five Ones" Projects as its carrier actively practices corporate social responsibility enthusiastically
other areas. It then collaborates with relevant departments to develop improvement plans
monitor implementation and increase employee satisfaction. participates in public welfare undertakings promotes rural revitalization and strives to give back to society by sharing its business
achievements in order to be a responsible enterprise. Over the course of the reporting period the Company organized employees to
participate in various public welfare activities such as the establishment of the civilized cityin Ludao. Additionally the Company provided
Highlight Practice Internal Communication Feedback Mechanism a rent reduction of 24.26 million yuan to tenants.The Company has established a smooth and timely communication and feedback
mechanism to proactively gather employees' opinions. The main forms of communication
and feedback are as follows:
Face-to-face Communication:
the Company's annual business meeting leaders' symposiums at all levels "Five Ones" Projects
monthly meetings performance feedback sessions daily informal talks and
team-building activities.Written Communication:
daily reports weekly reports and special reports related to daily operations.Online Communication:
communicate and feedback through company's OA system and "Yuxin".Employees donate one day's
Employees should spare at
Furthermore the Company has established a workers' congress system 40 staff representatives salary to the Spring Rain least one day each year to
were elected in accordance with the Trade Union Law and other documents and hold Fund every year.participate in volunteer service
the workers' congress every year to discuss issues concerning employees' interests and to
promote the normalization and standardization of democratic management. The Company activities.also adheres to the practice of holding symposiums such as "criticism and selfcriticism" and
"visiting grassroots and listening to voices" every year. These symposiums aim to gather
feedback suggestions and evaluations directly from employees regarding their own work
communication and cooperation and timely optimization of work processes and mechanisms
to enhance the intrinsic motivation for innovation.Highlighted Practices Car owners stop driving for
one day every year.Over the course of the reporting period through the feedback from the workers'
Key Performance congress the children's care class for summer vacation was launched for the first
time to address the concerns of employees regarding childcare responsibilities
during the summer vacation period.The Number of Times of
Workers' Congresses or Other Employees are encouraged to
Democratic Communication voluntarily donate blood once
Meetings. a year based on their individual The company donates to eligibility and conditions.
30 one social welfare project times annually.
Activities in Children's Care Class for Summer Vacation
45 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 46Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
Promote rural revitalization and demonstrate responsibility Overview of Community Activities in 2022
Over the course of the reporting period in accordance with the unified arrangements from
higher authorities the Company conducted in-depth visits and research in Guoxi Village
Pairing
assistance Xiangping Street Tong'an District. The Company engaged in communication related to rural Created the party member activity room in
with Guoxi revitalization discussed the assistance work plan and actively played a leading role in the Longteng Garden of Houpu Community.Village demonstration of state-owned enterprises. It is expected to help Guoxi Village achieve its January
goal of an annual collective economic income of 500000 yuan in 2024. Conducted discussions and exchanges with
Organized a voluntary blood donation event on
Houpu Community Neighborhood Committee Mother's Day with the theme "Chinese Blood
and carried out condolence activities for old Cross-Strait Affection.".Since 2018 the Company has been combining industrial assistance with poverty alleviation party member who has difficulties in the Spring Participated in the joint meeting of the Party
through consumption annually organizing the purchase of products from East-West Festival. Committee of Houpu Community and the
regional cooperation to promote local industrial development and strengthen the collective May symposium of the joint construction unit.Consumption economy. Over the course of the reporting period the Company and its subsidiaries
assistance Conducted volunteer activities of civilization and purchased poverty alleviation products worth over 1.04 million yuan.through East- clean home initiatives.West regional Since 2021 the Company has signed an agreement on party building and co-construction Jointly carried out the "Little Captain" Children's
cooperation with Quanzijie Town and Xindi Township in Jimsar County Xinjiang. The collaboration Conducted discussions and exchanges with Day event.focuses on assisting the growth of young people and jointly promoting rural revitalization Houpu Community Neighborhood Committee July
and carried out visits to senior party members
among other aspects. who have difficulties in the Spring Festival.Organized the voluntary service activities of
The Company is primarily concerned with agricultural development. Since its entry into "Clean Home"
Heilongjiang China's main grain producing area in 2013 it has established an integrated September
service system for the entire grain industry chain which integrates seed fertilizer service Conducted the themed party day event
"Celebrating the 20th National Congress
Building a solid agricultural planting grain storage logistics and transportation raw grain supply grain
Warming the Double Ninth Festival"."ballast" for food processing and agricultural finance and has built the “Xiamen Xiangyu's Industry-levelsafety Agriculture Internet Platform” covering the entire chain of grain cultivation storage and Jointly carried out party day event on the theme November
circulation through the use of digital intelligence technology. The platform contributes to of "I know the three rates of safety"
stabilizing the foundation of agriculture with the strength of Xiamen Xiangyu.Organized the volunteer activities of " Embrace
December the Beauty Care with Love"
In terms of community contribution the Company worked with the Houpu community to actively participate in the community's political
public welfare and mass work as well as to carry out practical activities such as volunteer service caring for the next generation and the
elderly and caring for the community to the greatest extent possible. Simultaneously the Company encourages party members to actively
participate in volunteer activities such as clean homes and civilized supervision as well as community governance to contribute their efforts to
the construction and improvement of the community.The Company also works with all sectors of society to promote the construction of overseas communities. Utilizing local festivals such as
Thanksgiving we actively engage in community chamber of commerce activities in the United States strengthen the maintenance of external
relations. We also cooperate with the Chinese Chamber of Commerce in Vietnam to visit children's protection centers and nursing homes
together and donate essential goods and food to protected children and elderly people in need to promote global public welfare actions.Key performance
Number
Indicators (As of the end of unit
December 2022)
Investment for Advancing Rural
105.94 10K CNY
Rejuvenation
Carrying Out Compassionate Pairing Visits Sending Children's Day Gifts to Impoverished
Children in Jimsar County
47 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 48In order to help solve the prominent issues such as high cost low
efficiency and high environmental pollution existing in the traditional
logistics model Xiamen Xiangyu is exploring the development path
of green logistics. Embracing eco-friendly practices throughout our
operations we are cementing the supply chain foundation for the green
industry and lending critical support to the achievement of the "carbon
dioxide peaking and carbon neutrality" goals. ENVIRONMENTAL CHAPTER
Discovering the Splendor of Natural Environment
and Leading the Way for Green Innovation
49 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 50Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
GREEN LOGISTICS Line name Channel construction Measures to reduce pollution and consumption
We have taken proactive measures to strategically Waterway transportation uses less energy and generats
Xiamen Xiangyu is committed to building a multi-model transport system rooted in the logistics industry. In response to the national position our logistics network effectively linking fewer pollutants than railway and highway transportation.initiative of "Switching from Road to Rail Transport" "Consolidating Loose Cargo into Containers" "Port-to-Port Cooperation" the critical nodes such as the northern production By adopting a transportation model with rail and water as
centers port clusters and southern sales regions the primary modes supported by road transport we have
company has integrated its logistics and digital systems to create a unique "logistics leadership smart empowerment and high-level to establish a seamless and efficient transportation significantly reduced the proportion of road transport distance
collaboration" model promoting the development of green logistics. It also leverages the distinctive advantages of open-top container North to South Grain Diversion channel for North to South Grain Diversion. Our to less than 1/10 of the entire transportation process thereby
transportation to achieve "Switching from Road to Rail Transport" for various products including cement clinker and kaolin fulfilling its approach includes a unique blend of multi-model lowering transportation costs and energy consumption which
transport options leveraging "Road Transport Rail has resulted in cost reduction and increased efficiency in grain
mission to provide efficient and sustainable logistics solutions. Transport Water Transport and Warehousing" transportation.facilities resulting in a highly specialized and
tailored logistics system.Relying on our own aluminum industry Leveraging the rail node benefits of Xiangdao Logistics
chain's operational volume advantage we the Company completed transport structure adjustment of
have successfully instituted significant transit "shifting from road to railway" and "consolidating scattered
Key Performance Trans-provincial Corridor for
corridors for alumina and electrolytic aluminum cargo into consolidated shipments" supplanted largescale
Aluminum Products
including but not limited to the 'Xinjiang-Henan' trucking with rail container shipments achieved quality
Over the course of the reporting period the Company achieved a "Switching from Road to Rail Transport" transportation volume of and 'Shandong-Inner Mongolia' routes. efficiency and energy savings in the transport of aluminium
approximately 8 million tons reducing automobile transportation by 267000 times which can reduce carbon emissions by a products.whopping 1.47 million tons annually.Through the promotion and development of China-Europe freight trains the cumulative mileage has almost reached 4 million
kilometers resulting in a reduction of 27000 tons of carbon dioxide emissions compared to cross-border cargo trucks transporting
bulk goods. This signifies a significant contribution towards sustainable transportation and a reduction in the carbon footprint.We have comprehensively integrated electronic signature technology resulting in a fully digitized and paper-free process for the
inbound and outbound warehousing of goods. This endeavor has led to a substantial decrease in carbon emissions estimated to be
around 6028.8 tons annually.The company achieved a breakthrough in the transportation structure of " Intermodal transportation combining railway and waterway and short
road transport" in the development of multi-model transport logistics system and built multiple green low-carbon and efficient multimodal
logistics lines of bulk commodities such as "North to South Grain Diversion" "North to South Coal Diversion" and "Trans-provincial Corridor for
Aluminum Products" which can significantly reduce the energy consumption and pollutant emissions in the logistics process.Key Performance
Over the course of the reporting period the Company's responsible practice case of "multi-model transport service for bulk commodities North-south and west-east coal transit corridors North to South Grain Diversion
realizing digital intelligence empowerment and supporting the goal of 'carbon dioxide peaking and carbon neutrality' " was selected
into the 2022 GoldenBee Responsibility Competitiveness Case Collection.The Company has been actively involved in the creation of
Relying on multi-model transport to build a "green low-carbon and efficient" logistics route. two pivotal industry standards: the Enterprise Green Logistics
Assessment Indices and the Methodology for Greenhouse Gas
Line name Channel construction Measures to reduce pollution and consumption Emission Accounting in Logistics Companies. These standards
are led by the Green Logistics division of the China Federation
Relying on the layout of Xiangdao logistics nodes in the Railway transportation consumes 15% less of Logistics and Purchasing. This involvement serves to guide the
central and western regions the Company sends coal energy and generates 8% less pollution than road
from Shanxi Shaanxi and western Inner Mongolia to transportation. The Company transports coal by sector in shaping a sustainable low-carbon growth trajectory
North to South Coal Diversion Yunnan Guizhou Sichuan Shandong Hunan Jiangxi using the form of "shifting from road to railway ". in accordance with these standards thereby establishing the
and West to East Coal and other regions by railway and builds transport Prior to the train's departure a dust-suppressing strategic direction for the environmentally-friendly progression
Diversion corridors for transporting coal from northern China to substance is administered onto the surface of the
the South and from western China to the East. coal. This creates a protective layer which effectively of the logistics industry.mitigates the release of dust thereby curbing
environmental pollution.Trans-provincial Corridor for Aluminum Products
51 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 52Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
ENVIRONMENTAL-FRIENDLY WORKPLACE Headquarters Water Saving Measures
Equipped with rainwater recovery system the recovered rainwater will be used as supplementary water for landscape pool and Greenery
Xiamen Xiangyu focuses on incorporating the concept of green and low carbon into daily office work and promotes employees' watering;
awareness of green and low carbon through resource conservation management and recycling as well as organizing green and low-
Purify the water with water purifying agent so as to prolong the water exchange period of the conventional water storage tank by at least half
carbon activities to reduce the impact on the environment in the office work and contribute to the development of an ecological a month and reduce the water consumption caused by water exchange;
civilized and beautiful society.Fully installed water-saving toilets faucets and other water appliances which can save water by 50% compared with traditional equipment.Headquarters Waste Management Measures
Company Headquarters Office Building
Set trash cans in all places of the office building and the cleaning staff will collect and sort the garbage at noon and afternoon every day then
remove the non-recyclable garbage to the designated location;
was awarded the three-star rating (pre-evaluation) of China's Solar energy heating now contributes to
highest level of green building evaluation and the LEED gold pre- 42.3 Set up a special area to store decoration or large and kitchen garbage and not mixed with domestic garbage;% of our hot water supply.certification issued by the US Green Building Council.The annual garbage sorting capacity is 137.64 tons including 6.06 tons of kitchen waste and 16.19 tons of recyclable waste.Our monthly average energy usage consistently undercuts the
citywide average in Xiamen by 7.6%
Headquarters Power Saving Measures
Intelligent building equipment automatic control system is adopted to set the lights
night curtain wall electronic screen pool fountain system air conditioner and fresh air
system in public areas (divided into working mode rest mode and holiday mode) for
energy saving control;
Promote "turn off the lights when people leave" to all office staff and at the same time
and through the security regular inspection to make up for the lights off.
53 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 54Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
Green Travel Key performance
Provide free shuttle bus for employees encourage employees to travel by public transport and reduce carbon emissions caused by commuting. Over the course of the reporting period the Company has achieved
The Company annually conducts a "one-day parking" event tailored towards employees with private vehicles. Over the course of the reporting The supply of lithium carbonate ranks among the top five in China
period this initiative drew participation from 548 company employees and successfully heightened their environmental cognizance by integrating
low-carbon principles into their routine. Lithium salt business volume ranks third in the country.Cobalt imports account for more than 10% of the country.Environmental Voluntary Activities
Every year the Company organizes employees to participate in Comprehensive service scheme of new energy supply chain
voluntary tree planting. Over the course of the reporting period
employees visited Dongping mountain Xiamen's "green lung" to
participate in volunteer tree planting activities and thoroughly
Upstream Midstream Downstream
practiced the development concept of "Lucid waters and lush
mountains are invaluable assets" through practical actions.Dongping Mountain Tree Planting Activity
Foreign Mining Sources in Nickel Diamond and Battery Materials Battery New Energy Vehicle
Africa Indonesia South Steel Smelting Plants Manufacturing Plants Manufacturing Plants (NEV) Manufacturing
America Australia etc. Plants
The Company regularly organizes employees to participate in Procurement and End-to-End Logistics (Sea Freight Import Comprehensive Financial Outsourced Semi-Finished
environmental cleaning activities including park and beach Distribution Customs Clearance Bonded Warehousing) Solutions Product Processing
garbage cleaning so as to build a "green healthy environmentally
friendly and civilized" urban environment with practical actions."One Chain and Two Channels" comprehensive service scheme
Typical
Volunteering for Civilized Guidance Case to help photovoltaic green power go abroad
SERVICING GREEN INDUSTRY Shenggaofa is a Chinese new energy company that specializes in the production of photovoltaic modules. It requires professional supply chain service operators to assist it in shipping photovoltaic products overseas. Over the course of the reporting period Shenggaofa was
threatened with closure due to a sudden price increase in photovoltaic raw materials such as silicon wafers and batteries which were in
CUSTOMERS short supply. Xiamen Xiangyu's one-stop platform truly provides customers with comprehensive services across the entire supply chain
not only that we contacted Vietnamese Chinese manufacturers integrated logistics resources and designed logistics solutions to assist
customers in solving the shortage of photovoltaic raw materials within one week but also provided the customer with comprehensive
China is continuously implementing the " carbon dioxide peaking and carbon neutrality" goal to accelerate the transition to green and service solutions with overseas resources and assisted it in winning orders from overseas customers in Europe which was greatly
low-carbon development. Xiamen Xiangyu actively responds to the national strategy continuously optimizes the product portfolio and appreciated by the project manager of Shenggaofa.continues to make efforts in the two new energy tracks of lithium battery and photovoltaic assisting the country's green development
while actively integrating into the global carbon neutral wave."There must be professional people to do professional things. Xiamen Xiangyu not only has a mature model
in the supply chain but also has a first-class team to provide comprehensive solutions which is fast and
Ensuring Security and Stability of the New Energy Supply Chain efficient and truly achieves one-stop service so that the company can rest assured."
—— Lily project manager of Shenggaofa
Through multi-model transport and other logistics methods the Company focuses on resource-rich areas abroad such as Australia Africa and
South America to introduce raw materials such as lithium cobalt and nickel to strengthen the supply chain of domestic new energy enterprises.Domestically the company focuses on resource bases such as Qinghai and Sichuan and has formed a full chain processing channel from raw
ore semi-finished products and finished products to improve logistics turnover efficiency and promote the stable development of the new
energy industry. Simultaneously with the assistance of mature overseas channels the Company assists domestic electric vehicle enterprises in
exploring the electric vehicle market in Europe South America and other places allowing its excellent products to "go abroad."
55 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 56
Xiangyu SolutionsMessage from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
Support low The Company is actively expanding the photovoltaic power station market and has now Industry Pioneeringestablished one-stop comprehensive service capabilities such as photovoltaic project
carbonization of development investment equipment supply and operation and full-cycle financial leasing The tailings wastewater rapid treatment system can achieve "zero" wastewater discharge in the
services for photovoltaic power stations. Currently the Company's photovoltaic business has production process which replaces the traditional tailings pond occupies a small area requires less
power system covered many domestic provinces such as Fujian Zhejiang Jiangsu and Guangxi as well as investment and achieves 100% wastewater recycling which is the first in the world.high-growth markets including Europe and Asia.Safe and Reliable
Typical When compared to traditional treatment methods of mineral processing enterprises the mineral
Case Rooftop Photovoltaic for Enterprise Development on the "Green Engine" processing system and method for recycling iron-bearing tailings can effectively solve the reuse
problem of refractory iron ore associated iron ore and tailings resources as well as reduce the
In October 2022 the Company's subsidiary Xiangyu New Energy and GD Power Development Fujian New Energy jointly developed a potential safety hazards and environmental hazards brought by tailing ponds.plant roof distributed photovoltaic power plant project officially started construction. The photovoltaic power station project uses 40000
square meters of roof and local lighting to build a distributed photovoltaic power plant with an installed capacity of 3.7 MW. After the
project is connected to the grid it is estimated that the system will generate an average of 3.76 million kWh of electricity per year and Achieving Net‐zero Emissions Target
reduce carbon emissions by 3700 tons. The operation of the project can help customers significantly reduce the solar radiation received
by the roof effectively reduce the load of air conditioning system and building energy consumption and also provide the customer with The comprehensive utilization technology of roasted tailings realizes that secondary tailings
electricity security and reduce the electricity cost of operation. become raw materials for cement and concrete and the discharge of waste residue pollutants is
zero completing the industrial chain's closed-loop work. The concrete can meet the strength grade
requirements of concrete above C40 by using roasted iron tailings instead of cementitious materials
in various proportions.Technical Capability
The Company has been granted 37 patents and the invention patent "A kind of tailings sewage rapid sedimentation
concentration tank" won the gold medal in the "First China Circular Economy Patent Award".National Ministry of Industry and Information Technology Industrial Products Ecological (Green) Design Pilot
Enterprise (the second batch).Xiamen Innovative Pilot Enterprises.The Technology of "Land-saving High-efficiency Low-cost and Rapid Tailings Wastewater Recycling System and
Xiangyu New Energy Joins Hands with GD Power Development to Develop PV Power Plant Project Application" Won the Second Prize of Science and Technology of China Circular Economy Association.The Company Participated in and Implement the Project of Xiamen Science and Technology Plan "Industrialization of
Zero Emission Production Technology of Iron Concentrate".The Company participated in and carried out the 12th Five-Year Plan 863 project "Magnetized Roasting Iron Tailings
APPLICATION OF GREEN TECHNOLOGY as Resources for Cement Concrete" which was deemed "internationally leading" by evaluation experts.Xiamen Xiangyu actively seized the opportunity of economic green transformation continued to carry out green technology research
and development embraced the development trend of external green technology and applied the existing mature low-carbon
technology to the company's production and operation thus continuously reducing the environmental impact.The agricultural sector of the Company performed low-carbon transformation on the coal-fired drying tower replaced coal with biomass
Xiamen Xiangyu Huanzi Mining Science and Technology Co. Ltd. is dedicated to making mineral processing more environmentally particles to heat the drying tower and installed pulse bag dust removal facilities to ensure that the exhaust gas met the standard realizing the
friendly. In response to the problems of environmental pollution and waste of resources in the development and utilisation of traditional pollution reduction and carbon reduction synergy.iron ore we continue to invest in research and development in the fields of mineral processing wastewater and waste residue subvert
the process and technical route of traditional mineral processing industry and put forward a four-in-one overall solution of "circular
economy comprehensive utilization clean productionenergy efficient."
Key Performance
Over the course of the reporting period the number of biomass drying towers in the
Company was 21 accounting for 28% and the average annual coal consumption
Features of Green Wide Application was reduced by 13802 tons.Scheme The versatile manufacturing line is capable of accommodating the processing and production of
various iron ore types encompassing magnetite hematite limonite among others.
57 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 58Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
ROADMAP AHEAD
In 2023 Xiamen Xiangyu will persist in driving the execution of its "6th Five-Year" Plan with steadfast commitment to the "carbon dioxide peaking and carbon neutrality" goal. We will maximize the benefits of our integrated multi-model transport
developmental direction of "Platformization Internationalization and Digitalization and Intelligence" and rely on "organizational logistics system to enhance efficiency and diminish resource consumption throughout the industrial supply chain. Furthermore
optimization and capability enhancement" as their main support. The company will focus on their core business of providing we are committed to extensively expanding the comprehensive industrial chain of renewable energy catalyzing an optimized
integrated supply chain services for bulk commodities while constantly exploring customer market and model value. With the energy framework and relentlessly striving for the conservation of lucid waters and lush mountains. Fully leveraging our
help of their accumulated experience and data we will build a comprehensive digital supply chain service platform to serve multimodal transportation and logistics strengths we will drive the optimization of energy efficiency up and down the chain
as a "smart brain" for industrial customer supply chain services providing efficient and optimal solutions through a one-stop while actively expanding our new energy full-industry value chains promoting energy structure upgrades and continuing our
comprehensive service. commitment to protecting our natural environment.To ensure the legal and stable operation as well as sustainable development of our company Xiamen Xiangyu will continue to In the upcoming year Xiamen Xiangyu remains committed to fulfilling our social responsibilities and contributing to the
drive the construction of a systematic standardized and transparent governance system. We uphold the business philosophy betterment of society. We will actively engage in social development efforts including rural revitalization poverty alleviation
of "Risk First Profit Second and Service Scale Third" and are continuously improving our risk management processes to and value creation. Upholding a philosophy centered on People Oriented we are committed to continually improving our
minimize the potential impact of operational risks on the company. welfare system creating opportunities for professional growth expanding career advancement paths and fostering a cohesive
community of shared interests and fate.In the upcoming year Xiamen Xiangyu will persist in accelerating its digital intelligence transformation under the guidance of
establishing a "Smart Xiangyu" to stimulate innovation in business model enhance the efficacy of internal management and Maintaining steadfast dedication and guided by a clear vision we move forward into the future. In 2023 Xiamen Xiangyu
instill new value into services for the bulk supply chain. We remain committed to the continual optimization of our "YuLianTong" will strive to further improve operational and management capabilities actively listen and respond to the expectations and
digital supply chain service platform industrial-level internet platform for agriculture online freight and water transport demands of stakeholders serve the real economy fulfill social responsibilities and generate greater value. and continually
platforms among others. Moreover we are excited to provide new perspectives novel paradigms and dynamic solutions for march towards our aspiration of "becoming a world-class supply chain service enterprise" with unwavering determination and
the greater Chinese bulk supply chain community with our digital transformation expertise and practical cases to solve today's steadfast action.most pressing business challenges.In the upcoming year Xiamen Xiangyu will persist in navigating towards green low-carbon development unyieldingly
championing green growth contributing to the establishment of green supply chains and playing its part in reaching the
59 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 60Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
APPENDIX List of Policies ESG Metrics Smmary Policies in Place
* Information Disclosure Affairs Policy
* Xiamen Xiangyu Investor Relations Management Policy
* Xiamen Xiangyu Risk Management Policy
Governance Aspect
* Xiamen Xiangyu Compliance and Governance Policy
* Xiamen Xiangyu Information Security Management Policy
About the Report * Xiamen Xiangyu Bulk Commodity Trading Risk Management Policy
Overview
This report is the inaugural Environmental Social and Governance Report ("this Report") released by Xiamen Xiangyu Co. Ltd. The aim
of this report is to provide a comprehensive and detailed overview of the Company's principles beliefs management measures and * Xiamen Xiangyu Management of Digital Operations Service
performance achievements in sustainable development. Regulation
Scope of Reporting Service Aspect * Xiamen Xiangyu Food Operation and Management Policy
This Report covers Xiamen Xiangyu Co. Ltd. and all its subsidiaries. The financial data presented in this report is in accordance with the * Xiamen Xiangyu Anti-unfair Competition Regulation
annual consolidated financial statements of Xiamen Xiangyu Co. Ltd. This is an annual report covering the period from 1 January to 31 * Xiamen Xiangyu Management of Inventory Regulation
December 2022("Repoting Period") some parts of which are outside the above scope references to previous years.Preparation Basis
* Xiamen Xiangyu Occupational Ethical Risks Management Policy
This report follows the guidelines set by the Shanghai Stock Exchange regarding social responsibility report preparation while also
referencing the Global Sustainability Standards Board's (GSSB) GRI Sustainability Reporting Standards (GRI Standards). In addition the * Xiamen Xiangyu Organizational Structure Management Policy
report draws from suggestions offered in the ISO 26000:2010 Guidance on Social Responsibility issued by the Technical Management * Xiamen Xiangyu Position Management Policy
Board groups (ISO/TMBG) managed under the International Organization for Standardization (ISO).* Xiamen Xiangyu Management of Overseas (Border) Travel for
Notes to Data Employees Regulation
The data management mechanisms and cases contained in this Report are derived from the original records or financial reports of the * Xiamen Xiangyu Management of Retiree Reemployment Regulation
Company's actual operations. All financial data presented in this Report is in Chines Yuan(CNY). In case of any discrepancies between the * Xiamen Xiangyu Management of Overseas Staff Deployment
financial data presented in this Report and that presented in the Company's annual consolidated financial statements the latter shall take
Regulation (Trial)
precedence.* Xiamen Xiangyu Management of Interns Regulation
Appellation Description
* Xiamen Xiangyu Management of Expatriates Regulation
For the sake of readability the report refers to " Xiamen Xiangyu Co.Ltd." as "Xiamen Xiangyu" "the Company" "this Company" or "we" in * Xiamen Xiangyu Compensation Management Policy
this Report.* Xiamen Xiangyu Attendance and Leave Management Measures
"Xiamen Xiangyu Group Corporation Limited" is also referred to as " Xiangyu Group" while "Xiangdao Logistics Group Co. Ltd." is referred Social Aspect * Xiamen Xiangyu Performance Assessment Management Policy
to as "Xiangdao Logistics".* Xiamen Xiangyu Expert Pool Management Measures
Reliability Statement
* Xiamen Xiangyu Departmental Structures and Functions
Xiamen Xiangyu promises that nothing in this Report contain any false records misleading statements or material omissions and the * Xiamen Xiangyu Recruitment Management Policy
Board of Directors of the Company assumes individual and joint responsibility for the truthfulness accuracy and completeness of the
information herein. * Xiamen Xiangyu Management of Employee Training Regulation
* Xiamen Xiangyu Management of Internal Trainer Management
Report Access Regulation
This Report is published in both print and electronic format. The print version is available in the Company's Securities Department. * Xiamen Xiangyu Employment Contract Management Policy
The electronic format is available on the Company's official website ( http://www.xiangyu.cn/ index.aspx). * Xiamen Xiangyu Management of Job Rotation Regulation
* Xiamen Xiangyu Internal Referral Management Policy (Trial)
Contact Us
* Xiamen Xiangyu Responsibilities of Functional Company
Xiamen Xiangyu encourages all stakeholders to make advice or comments on the Company's efforts on sustainability and social
* Xiamen Xiangyu Management Rules of Business Travel
responsibilities. If there are any relevant matters please contact stock@xiangyu.cn for further assistance.
61 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 62Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
Topics Policies in place NumberIndicators (as of the end of December Unit
2022)
* Environmental Protection Policy Business ethics training 53 sessions
* Environmental Protection Management Policy
The number of policy related to risk management bulk commodity trading
Environmental * Hazardous Waste Management Policy 3 itemsand compliance being reviewed or updated
Aspect * Cleanner Production Management Policy
* Water Conservation Management Policy KPIs for Digital Transformation
* Environmental Emergency Operation Response Plan Investment in digitalization construction 21200 10K CNY
The number of training activities conducted to empower digitalization
6 sessions
construction
The number of employees participating in training related to digitalization
550 person-times
construction
Key Performance Indicators
The number of management-level employees participating in training
158 person-times
related to digitalization construction
The number of dedicated personnel at the headquarters responsible for
Number 131 persons
Indicators (as of the end of December Unit company's information technology construction
2022)
KPIs for Corporate Governance Number of talents supplied to each department (ITBP) 16 persons
Board of Directors meetings 16 times
Board of Supervisors meetings 11 times
General Meeting of Shareholders 7 times
Audit Committee meetings 11 times
Compensation and Assessment Committee meetings 2 times
Investment Development (Strategy) Committee meetings 1 times
Release of periodic reports to the public 4 copies
KPIs for Employment and Social Topics
Release of interim announcements 108 copies
Number
Replying to SSE E-interactive online platform 26 questions Indicators (as of the end of December Unit
2022)
Answering investors' inquiries 300+ calls Number of Employees in Xiamen Xiangyu Headquarters 445 persons
Handling IR mailbox mail 100+ emails Number of Employees in the Main Subsidiaries 7746 persons
Training related to organizational compliance of the Company 42 sessions
Total Number of Employees 8191 persons
Board Directors Supervisors Senior Management to participate in
1 sessions
compliance training. By Gender
Number of compliance-related complaints received by the Company 0 cases Number of Male Employees 5357 persons
The number of compliance-related complaints handled by the Company 0 cases Number of Female Employees 2834 persons
63 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 64Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
Indicators 2022 Data Unit KPIs for Environmental Topics
By Age Indicators 2022 Data Unit
30 and Under 2813 persons (Purchased) electricity use * 74968102.00 Kwh
Between the Ages of 30 to 40 3013 persons
Natural gas use 437800.00 m3
40 and Above 2365 persons
By Academic Qualifications Wastewater discharge volume 50166 m3
Master’s Degree 5 persons
Ammonia and nitrogen emissions 0.003 tons
Master’s Degree 658 persons
Chemical oxygen demand (COD) emissions 5.592 tons
Bachelor’s Degree 3585 persons
College Degree 1553 persons NOx emissions 0.129 tons
Vocational High School and Technical Secondary School 580 persons
PM emissions 2.2045 tons
High School and Below 1810 persons
By Region VOCs emissions 17.6 tons
Number of Employees working in Mainland China 8120 persons
Hazardous waste emissions 6.47963 tons
Number of Employees Working in Hong Kong Macao
71 persons
Taiwan and Overseas Regions
Laboratory waste liquid 0.6086 tons
Employee Training and Development 147626 person-times
Training for Male Employees 94458 person-times Reagent bottle 0.46987 tons
Training for Female Employees 53168 person-times
Average Training Time per Employee 38.4 hours Waste paint bucket 0.15871 tons
Average Training Time per Male Employee 39.8 hours
Waste oil drum 0.12445 tons
Average Training Time per Female Employee 35.4 hours
Number of Conducting Employee Congress or Other
sessions Lead-acid battery 2.74 tons
Democratic Communication Meetings. 30
Coverage Rate of Annual Occupational Disease Medical
%
Check-up for Employees 100 Mineral oil 2.378 tons
Carry Out Occupational Health and Safety Training 371 sessions
Non-hazardous waste recycled 72 barrels
The Number of Employees Participating in Occupational
person-times
Health and Safety Training 17045
Non-hazardous waste volume 864 barrels
Coverage Rate of Occupational Health and Safety Training 100 %
The Investment Amount of the Company in Purchasing
140 10K CNY Number of dedicated environmental personnels training 4 sessionsOccupational Injury Insurance
The Amount of Subsidies Provided by the Labor Union for Environmental protection training conducted within the
10K CNY 4 sessions
Employees in Need 24.4 company
The Amount of Maternity and Marriage Congratulations Proportion of employees covered by environmental-
11.44 10K CNY %Allowances Provided for Female Employees 100related training
Investment in Supporting Rural Revitalization. 105.94 10K CNY
Note*: Data scope includes Xiamen Xiangyu and its subsidiaries operating in production processing warehousing and logistics businesses
65 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 66Message from About Sustainability Governance Chapter:Keep Pace with the Service Chapter: Pursuing Profit for the World's Social Chapter: Cooperate and Benefit Environmental Chapter: Discovering the Roadmap Ahead Appendix
the Chairman Xiamen Xiangyu Management Times and Strengthening the Foundation of Well-being Servicing for High-quality Development Mutually towards a Win-win Situation Splendor of Natural Environment and
the Enterprise of the Nation Leading the Way for Green Innovation
Index of Standards
Contents GRI standards Contents GRI standards
2-2: Entities included in the organization's sustainability report (From GRI 2: General Disclosure 2021) Social Chapter: Cooperate and Benefit Mutually towards a Win-win Situation
Message from the Chairman
2-3: Reporting period reporting frequency and contact point (From GRI 2: General Disclosure 2021)
2-7: Employees (From GRI 2: General Disclosure 2021)
2-1: Organizational Details (From GRI 2: General Disclosure 2021)
About Xiamen Xiangyu 201-3 Defined benefit plan obligations and other retirement plans (From GRI 201: Economic
2-6: Activities Value Chain and Other Business Relationships (From GRI 2: General Disclosures 2021) Performance 2016)
401-2: Benefits for full-time employees (excluding temporary or part-time employees) (From GRI 401:
2-12: Role of the highest governance body in overseeing the management of impacts (From GRI 2: Employment 2016)
General Disclosure 2021) 403-6: Promotion of worker health (From GRI 403: Occupational Health and Safety 2018)Protection of Employment Rights
2-13: Delegation of responsibility for managing impacts (From GRI 2: General Disclosure 2021) 403-7: Prevention and mitigation of occupational health and safety impacts directly linked by business
2-14: Role of the highest governance body in sustainability reporting (From GRI 2: General Disclosure relationships (From GRI 403: Occupational Health and Safety 2018)
Sustainability Management 2021) 403-8: Workers covered by an occupational health and safety management system (From GRI 403:
2-29: Approach to stakeholder engagement (From GRI 2: General Disclosure 2021) Occupational Health and Safety 2018)
3-1: Process to determine material topics (From GRI 3: Material Topics 2021) 403-9: Work-related injuries (From GRI 403: Occupational Health and Safety 2018)
3-2: List of material topics (From GRI 3: Material Topics 2021) 405-1: Diversity of governance bodies and employees (From GRI 405: Diversity and Equal Opportunity)
Governance Chapter: Keep Pace with the Times and Strengthening the Foundation of the Enterprise 404-1: Average hours of training per year per employee (From GRI 404: Training and Education 2016)
Empower Employees 404-2: Programs for upgrading employee skills and transition assistance programs (From GRI 404:
2-9: Governance structure and composition (From GRI 2: General Disclosure 2021) Training and Education 2016)
Corporate Governance 2-12: Role of the highest governance body in overseeing the management of impacts (From GRI 2:
General Disclosure 2021)
203-1: Infrastructure investments and services supported (from GRI 203: Indirect Economic Impacts
Risk Control Management / Corporate Social Responsibility (CSR) 2016)
203-2: Significant indirect economic impacts (From GRI 203: Indirect Economic Impacts)
205-1: Operations assessed for risks related to corruption (From GRI 205: Anti-Corruption 2016)
205-2: Communication and training about anti-corruption policies and procedures (From GRI 205:
Anti-Corruption 2016) Environmental Chapter: Discovering the Splendor of Natural Environment and Leading the Way for Green Innovation
Compliance Management
205-3: Confirmed incidents of corruption and actions taken (From GRI 205: Anti-Corruption 2016)
419-1: Non-compliance with laws and regulations in the social and economic area (From GRI 419: Green Logistics 302-5: Reductions in energy requirements of products and services (from GRI 302: Energy 2016)
SocioEconomic Compliance 2016)
416-1: Assessment of the health and safety impacts of product and service categories (From GRI 416: 302-1: Energy consumption within the organization (From GRI 302: Energy 2016)
Merchant Management
Customer Health and Safety 2016) 302-3: Energy intensity (From GRI 302: Energy 2016)
Environmental-friendly Workplace 302-4: Reduction of energy consumption (From GRI 302: Energy 2016)
302-5: Reductions in energy requirements of products and services (From GRI 302: Energy 2016)
Data Security Management /
303-1: Interactions with water as a shared resource (From GRI 303: Water and Effluents 2018)
Service Chapter: Pursuing Profit for the World's Well-being Servicing for High-quality Development of the Nation
Serve Green Industry Customers /
Company Business Model /
Application of Green Technology /
The Transformation of the Company's
/
Digital Intelligence Roadmap Ahead
67 Xiamen Xiangyu Co.Ltd. Xiamen Xiangyu 2022 Environmental Social and Governance Report 68