XIN HAI TONG

新海通

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE (ESG) REPORTFujian Highton Development Co., Ltd.

2025

Address: 42nd floor, Shenglong global building (ICC global center),No. 23, Changting street, Ninghua street, Taijiang District, FuzhouTel: 0591-88086357Website: www.fj-highton.com

Fujian Highton Development Co., Ltd.

XIN HAI TONG

新海通

TABLE OFCONTENTS

About This Report

Message from the Chairman

Reporting ScopeReporting PeriodPreparation BasisData SourcesDefinitionConfirmation and ApprovalAccess to this Report

Afterword to the Report

Key Performance IndicatorsIndexesFeedback

Digital Intelligence-Driven,Collaborative Value Creation

Comprehensive Digital IntelligenceDevelopmentData Security and Privacy ProtectionHigh-Quality Customer ServiceResponsible Supply Chain

Green and Low-Carbon,Safeguarding the EcosystemGreen and Low-Carbon OperationStrengthening EnvironmentalManagementOptimizing Resource UtilizationBiodiversity Conservation

Sound Governance andCompliance as the FoundationGovernance for Sustainable DevelopmentCorporate GovernanceProtection of Investors’ Rights andInterestsCompliance and Risk ManagementBusiness Behaviors

Harmony and Safety, Creatinga Better Future Together

Navigation Safety ManagementProtecting Employees’ Rights andInterestsContribution to Society

About Highton Development

Company ProfileBusiness OverviewStrategy and CultureMilestonesKey Events of 2025Honors and AwardsKey Sustainable DevelopmentPerformance in 2025

Digital and Intelligent Leadership,Smart Shipping Across the Seas

Digital Strategy VisionAdvancing a Multi-System DeploymentDigital Empowerment of BusinessDevelopmentIndustry Exchange and CollaborativeDevelopment

Topic

Environmental, Social and Governance Report 2025About This Report

0102

About This ReportThis is the second Environmental, Social and Governance Report (hereinafter referred to as “this report”) issued byFujian Highton Development Co., Ltd. (hereinafter referred to as “Highton Development”). In the principles of objectivity,standardization, transparency, and comprehensiveness, this report provides a detailed disclosure of the Company’s practicesand performance in environmental, social, and governance for the year 2025.

Reporting Scope

This report takes “Highton Development” as the main body and includes its subsidiary companies. Unless otherwise specified,the scope of this Report is consistent with that of the Company's annual report.

Reporting Period

This report covers the period from January 1, 2025 to December 31, 2025 (the “Reporting Period”). To improve the comparabilityand completeness, some sections of this report may be appropriately referred to previous years or contains forward-lookingstatements. This report is released on an annual basis, consistent with the financial year.

Preparation BasisShanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 - Sustainability Report (for TrialImplementation)Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 4 - Preparation of Sustainability ReportGuide to Corporate Sustainability Reporting in China (CASS-ESG 6.0)of the China Enterprise Reform and DevelopmentSociety2021 Sustainability Reporting Standards (GRI Standards) of the Global Reporting InitiativeSustainable Development Goals (SDGs) of the United Nations

Data SourcesData sources used in this report include the Company’s actual operational data, publicly available data from governmentagencies, annual financial data, internal statistical reports, third-party questionnaire surveys, etc. The financial data in this reportis expressed in RMB. For any discrepancy between this report and the financial statements, the financial statements shall prevail.

Definition

For the ease of expression and readability, Fujian Highton Development Co., Ltd. and its subsidiaries are referred to as “theCompany,” or “We” in this report. Unless specifically indicated, the terminology used here has the same meaning as in theCompany's 2025 Annual Report.

Confirmation and ApprovalThis report was approved by the Company's Board of Directors on March 19, 2026, and was subsequently released in conjunctionwith the Annual Report. The Board pledges to exercise oversight over the contents of this report, ensuring its absence of anyfalse records or misleading representations, and assuming responsibility for its truthfulness, accuracy and completeness.

Access to this ReportThis report is available for review and download on the official websites of the Company (http://fj-highton.com) and the ShanghaiStock Exchange website (https://www.sse.com.cn).

0102

Message from the Chairman

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Environmental, Social and Governance Report 2025

Message from the Chairman

The year 2025 marks the final year of China’s 14th Five-Year Plan, the sixteenth year since the establishment of HightonDevelopment, and a pivotal year in which all Highton employees have built on past achievements, driven innovation, and laid asolid foundation for the Company’s sustainable development journey.Looking back over the past sixteen years, the Company has progressed steadily amid the fluctuations of the global economy,consistently viewing the future with a strategic vision and seizing opportunities through pragmatic actions. We firmly believethat an outstanding enterprise is defined not only by its ability to create value and serve the market, but also by its consciouscommitment to environmental, social and governance (ESG) responsibilities. Highton Development has deeply integrated ESGprinciples into all aspects of its operational and management activities, continuously enhancing its overall competitiveness andbrand influence in the dry bulk shipping sector.

Deepening ESG Integration to Drive Strategic DevelopmentCreating shared value and advancing strategy in tandem. In 2025, the Company’s ESG management evolved from the stageof “establishing mechanisms” to a new phase of “deepening integration”. Building on a sound ESG governance framework,we further and systematically incorporated ESG considerations into the Company’s investment decision-making and businessprocesses, thereby strengthening strategic resilience and long-term development capability in an increasingly complexenvironment.

Enhancing the Governance Framework and Strengthening the Foundation of RiskControlCompliance is the cornerstone, and risk control serves as the shield. The Company remains firmly committed to the coreprinciple of compliant governance, attaching great importance to the soundness of its corporate governance structure and theeffectiveness of its internal control system. The Company continues to closely monitor the latest laws and regulations, regulatoryand normative documents, as well as industry policies and guidance, and dynamically conducts systematic reviews and revisionsof its corporate governance and internal control systems. A continuously improving governance framework and an ever-higherstandard of compliant operations provide a solid institutional foundation for the Company to earn the long-term trust of investorsand business partners.

Focusing on Green Shipping and Fulfilling Environmental CommitmentsAdvancing toward sustainability and embracing innovation. The Company actively responds to China’s “dual carbon” goals,embedding green and low-carbon principles throughout the entire process of vessel operations and technological innovation.On the basis of strict compliance with international conventions as well as relevant domestic and overseas laws, regulations, andrules, the Company has formulated a range of environmental protection policies and procedures, and has equipped each of itsowned vessels with environmental protection facilities such as oily water separators and domestic sewage treatment systems.We closely monitor green technologies aimed at improving vessel operational energy efficiency and actively introduce variousenergy-saving equipment across our self-operated vessels. Through these efforts, we remain committed to reducing the carbonfootprint of our shipping activities and contributing Highton Development’s strength to the protection of blue seas and clearskies.

Empowering Employee Growth and Fostering Team SynergyTalent is our oar, and unity propels us forward. The Company firmly upholds its people philosophy of “Working together asone and leveraging individual strengths; Prioritizing integrity and emphasizing performance”, and translates a people-orientedapproach into concrete practice. By cultivating a proactive and progressive corporate culture, fostering an open and collaborativeworking environment, establishing diverse internal and external communication platforms, and building a comprehensivetalent development and promotion system—together with equity incentive plans—the Company has created a solid pathwayfor Highton employees to advance and grow. We are committed to supporting the development of every Highton employee,providing a stage for every breakthrough, and enabling individual talent to resonate in step with the Company’s strategy, as wejointly reach new heights.Riding the long winds, we will one day break the waves and set our sails high to cross the vast seas. Looking ahead, HightonDevelopment will continue to uphold its mission of “Aiming at the ocean, making China’s shipping business better and stronger”,carry forward the corporate spirit of “Sea in mind, Determined to win”, and remain committed to both sound governance andgreen development. With unwavering dedication, the Company will strive to create long-term value and pursue its vision of“Majoring in shipping, we aims to expand the shipping industry chain and build a well-known international shipping brand”.

0304

Fujian Highton Development Co., Ltd.

Chairman: Zeng Erbin

Message from the ChairmanEnvironmental, Social and Governance Report 2025

About Highton Development

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Environmental, Social and Governance Report 2025

About Highton Development

Company Profile

Fujian Highton Development Co., Ltd. was established in March 2009.Since its establishment, it has always focused on engaging in domesticcoastal and international ocean dry bulk shipping business. After yearsof accumulation, the company has developed into one of the enterpriseswith strong market competitiveness in the domestic private dry bulkshipping industry. On March 29, 2023, Highton Development was listed onthe Shanghai Stock Exchange, with the securities abbreviated as “HightonDevelopment” and coded as “603162”.The Company is a member of the “China Coastal (Dry Bulk) Freight IndexCompilation Committee” of the Shanghai Shipping Exchange and hasbeen awarded honors by the Pingtan Comprehensive Experimental ZoneAdministrative Committee of Fujian Province, including the “AdvancedCollective for Contributions to the Open Development of PingtanComprehensive Experimental Zone” and “Outstanding Private Enterprise”.The Company deeply delves into the field of dry bulk shipping, withthe corporate mission of “Aiming at the ocean, making China’s shippingbusiness better and stronger”. Adhering to the corporate spirit that “Sea in mind, Determined to win”, the Company hasestablished the values of “Struggle, Responsibility, Collaboration, Innovation”. It persists in maintaining the standards whilesimultaneously improving, ensuring safety and enhancing efficiency. Meanwhile, the Company actively integrates into thecustomer value chain and strives to create value for customers. With unremitting efforts, the Company aims to achieve the visionof “Majoring in shipping, we aims to expand the shipping industry chain and build a well-known international shipping brand”.

Business OverviewThe Company continuously enhances its shipping capacity and actively expands operations across all vessel types. It hasacquired Panamax and Capesize dry bulk vessels, as well as multipurpose heavy-lift vessels to expand its capabilities in high-endequipment and oversized cargo shipping. The Company has now become an owner of a full range of dry bulk vessels with theSupramax type as its core.In 2025, the Company added

vessels through new purchases and bareboat charters to increase the shipping capacity. Asof the end of the Reporting Period,

of these vessels had been delivered. Once all deliveries are completed, the Companyhad

long-term chartered dry bulk vessels (with a charter period of one year or more),

self-operated dry bulk vessels,

multipurpose heavy-lift vessels, and

oil tankers, bringing the total controlled capacity to

5.02

million DWT. Theshipping capacity ranks among the top in China’s dry bulk shipping industry.Leveraging excellent shipping capabilities, refined cost management, and efficient, responsive customer service, the Companyhas established long-term and stable partnerships with numerous well-known domestic and international enterprises. At the sametime, the Company has accumulated extensive experience in vessel management, route planning, and customer developmentand maintenance, forming a professional team with strong competitive capabilities.

International Ocean Shipping

Domestic Coastal Shipping

The Company primarily transports coal and has become one of the leading privateshipping enterprises in terms of service capacity on inland routes from the BohaiBay area to Yangtze River ports. At the same time, it is actively expanding itstransportation services for other dry bulk commodities, such as ores and water-slags.

In alignment with China’s “Belt and Road” Initiative, the Company actively expands its global drybulk shipping operations. Its routes cover over 350 ports across more than 100 countries andregions, providing clients with maritime transportation services for a wide range of cargoes,including ores, coal, grains, fertilizers, and general cargo.

Ranked among the Top 100 Private Enterprises in Fujian

Province in 2025

About Highton Development

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Environmental, Social and Governance Report 2025

Core Culture

Corporate Mission

Sea in mind,Determinedto win

Honesty, Focus,Cooperation andWin-Win

Spirit

ValuesPhilosophy

Corporate vision

Aiming at theocean, makingChina’s shippingbusiness betterand stronger

Struggle,Responsibility,Collaboration,Innovation

Majoring in shipping,we aims to expandthe shipping industrychain and build a

well-knowninternationalshipping brand

Fujian Highton Development Co., Ltd. was established.The 51,000 DWT vessel construction contract came into effect.Launch of the corporate culture development initiative.MV XIN HAI TONG 1, 2, and 3 commenced operations.MV XIN HAI TONG 5 commenced operations.MV XIN HAI TONG 6 and 7 commenced operations.MV XIN HAI TONG 8 commenced operations.Highton Development was listed on the National Equities Exchange and Quotations (NEEQ, alsoknown as the New Third Board).The Company’s official name was changed from “Fuzhou Highton Development Co., Ltd.” to “FujianHighton Development Co., Ltd.”HAI YANG ZHI YUAN commenced operations.MV XIN HAI TONG 19 commenced operations.MV XIN HAI TONG 9 and 10 commenced operations.MV XIN HAI TONG 15 and 16 commenced operations.MV XIN HAI TONG 17, 18, 20, 21 and 22 commenced operations.MV XIN HAI TONG 23, 25, 26, 27 and 28 commenced operations.Listed on the Main Board of the Shanghai Stock ExchangeMV XIN HAI TONG 29, 30, 31, 32, 33, 35, 36, 37 and 38 commenced operations.MV XIN HAI TONG 39, 50, 51, 52, 53, 55, 56, 57, 58, 59, 60, 801, 802, 803, 805, 901 and 902commenced operations.MV XIN HAI TONG 61, 62, 63, 65, 66, 806, 807, 808, 809, 810, 811, 812, 501, 505, 903 and 905commenced operations.

2009201120122013

2015

2014

2016

20172019202020212023

20242025

Strategy and Culture

The Company upholds the vision of “Majoring in shipping, we aims to expand the shipping industry chain and build a well-known international shipping brand” and adheres to the corporate mission of “Aiming at the ocean, making China’s shippingbusiness better and stronger”. Guided by the values of “Struggle, Responsibility, Collaboration, Innovation”, the Companyfollows a steady and sustainable business model to continuously consolidate and expand its high-quality client base,strengthen and refine its core business, and consistently create value for its customers.The Company will continue to focus on the dry bulk shipping sector, with Supramax vessels as its core, expanding shippingcapacity as appropriate and actively developing operations across all vessel types. It will accelerate the development of multi-dimensional service capabilities along the shipping industry chain, including vessel operations and bunkering services, withthe aim of building a resource-management-oriented shipping platform.In the future, the Company will continue to advance its digital and intelligent transformation by introducing artificialintelligence and implementing local deployment of large models. It will actively explore applications in business managementand collaborative office scenarios, providing powerful information integration and intelligent decision-support tools for vesselmanagement and operations. By fully empowering daily work, the Company aims to deliver efficient and precise intelligentservices, striving to build a “full-chain smart shipping ecosystem”.

Development Strategy

Milestones

About Highton Development

0910

Environmental, Social and Governance Report 2025Key Events of 2025

?The 2024 year-end summary and 2025 annual planningconference concluded successfully

?Two new 180,000 DWT Capesize vesselswere added to the fleet?Participated in the 2025 World Breakbulk Expo(WBX) in Shanghai

?

The Company made its debut at the world’spremier maritime logistics event, the BreakbulkEurope (BBK)

?

Highton Development “Navigating Together, Embarkingon a Shared Journey” Corporate Culture Day

?The 2025 Drybulk Shipping MarketConvention & Vessel Visit was successfullyheld?The first multipurpose general cargo vessel,MV XIN HAI TONG 501, joined the HightonDevelopment fleet, marking the Company’sofficial entry into multipurpose generalcargo vessel operations

January 2025

March 2025

June 2025

February 2025

May 2025

August 2025

?

Highton Development’s application for the

issuance of shares to specific investors was

approved by the Shanghai Stock ExchangeNovember 2025

Environmental, Social and Governance Report 2025

Key Sustainable Development Performance in 2025

Highton Development continues to uphold its commitment to sustainable development, achieving significant progress inthe environmental, social, and governance (ESG) areas through the dual drivers of refined operations and digital-intelligenttransformation. In 2025, the Company’s Wind ESG rating was upgraded to “A”, fully reflecting its effectiveness in sustainabledevelopment management and practices.

In 2025, the Company continued to leverage its strengths and fulfill its social responsibilities, making sustained contributions inthe economic, environmental, social, and governance dimensions, thereby supporting a sustainable future.

Honors and Awards

ESG Value Delivery AwardExcellence in Investor Relations Award

Operating Income（in RMB 10,000）Net Profit Attributable to Shareholders of the Listed Company（in

RMB 10,000）

About Highton Development

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Environmental, Social and Governance Report 2025

Total Number of General Meetings of Shareholders Held

6Times

Number of Meetings of Board of Directors Held18Times

Number of Meetings of Specialized Committees Held14Times

Performance Exchange Meeting5TimesTotal Environmental Investment4,137.41in RMB 10,000

Total Direct Energy Consumption347,422.38tce

Total Indirect Energy Consumption

135.39tce

Total Energy Consumption

347,557.77tce

Energy Consumption Intensity

78.23tce/RMB 1 million (revenue)

Direct GHG Emissions (Scope 1)771,010.72tCO

e

Indirect GHG Emissions (Scope 2)

591.12tCO

e

Total GHG Emissions771,778,22tCO

eGHG Emission Intensity

173.71tCO

e/RMB 1 million (revenue)

Total Number of Employees

368Person

Investment in Employee Training

37.91in RMB 10,000

Employee Training Participants3,944Training participants

Employee Training Coverage Rate100%

Staff Training Hours

8,586Hour

Percentage of Contract Workers

100%

Investment in Work Safety18,632.34in RMB 10,000

Environmental Performance

Governance Performance

Social Performance

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About Highton DevelopmentEnvironmental, Social and Governance Report 2025

Digital and Intelligent Leadership, Smart Shipping Across the Seas

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Environmental, Social and Governance Report 2025

Digital and Intelligent Leadership,Smart Shipping Across the SeasAgainst the backdrop of the accelerating digital transformation of the global shipping industry, data-driven management andprocess optimization have become critical to enhancing operational efficiency. Guided by the Company’s medium-term strategicdevelopment objectives, Highton Development is systematically advancing its digital transformation initiatives. By buildingan integrated decision-support and analytics platform, optimizing business systems such as fuel management, and exploringplatform-based services, the Company is progressively realizing the integration of business and finance as well as upstream anddownstream collaboration, with the aim of enhancing refined management capabilities and data-driven decision-making.

Digital Strategy VisionThe Company integrates the development of its digital systems with its overall corporate strategy, taking “digital transformationand upgrading” as the foundational guiding principle and implementing the action framework centered on “data as a productionfactor”. It continues to deepen the development of information systems, promotes comprehensive business intelligence andefficient, digitalized management, thereby enhancing management effectiveness and optimizing resource allocation. Throughinformation platforms, the Company serves its customers and empowers its partners, while internally improving operational andmanagement capabilities and externally strengthening collaborative operations with upstream and downstream partners, with thegoal of building a closely connected and highly efficient value-chain ecosystem.

Platformization

Model Building

Strengthening Internal Capabilities

Serve cargo owners and connect shipowners through a unified platformPromote collaboration across the upstream and downstream of the industryEmpower shipowners, achieve coordinated growth

Streamline internal management processes and enhance internal collaborationStandardize business processes and data standardsEstablish management standards and guidelines to solidify the management foundation

Systematically review and integrate internal systemsShare data and build a data analysis platformEstablish intelligent application scenarios as appropriateOverallObjectives ofDigitalization

Phased Objectives of Digitalization

Foundation

Integration

Enhancement

Deepening

2019-2023

2024-2025

2025-2026

In the future

Establish financial systems, humanresources systems, bank-enterprisesettlement systems, domestic-shippingsystems, foreign-shipping systems, andanalysing systems.

Introduce standardized data and integrate shared data;Optimize business data and data coupling, upgradeand iterate systems;Establish information standards and integrate systems.

Improve business and management processes;Introduce intelligent application scenarios asappropriate to empower business operations;Enhance data dimensions.

Deepen the application of business scenarios;Mature intelligent application scenarios toimprove efficiency and reduce costs.

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Digital and Intelligent Leadership, Smart Shipping Across the SeasEnvironmental, Social and Governance Report 2025

Digital and Intelligent Leadership, Smart Shipping Across the Seas

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Environmental, Social and Governance Report 2025

Advancing a Multi-System DeploymentThe Company is committed to building a comprehensive shipping digital ecosystem grounded in digitalization and intelligence, covering areas such as vessel operations, cargo chartering, and bunkering services. Through thisapproach, the Company aims to optimize business operations and enhance the overall efficiency of integrated management functions, including human resources and financial systems.

Basic Platform

DecisionSupportLayer

OperationsManagementLayer

Operations

ExecutionLayer

Performance Management SystemComprehensive Decision Analysis SystemBudget Management System

FinancialAccounting

Treasuryand BankingManagement

Domestic-

shippingOperation

System

Spare Parts

Biddingand BidComparison

Domestic-ShippingBiddingand BidComparison

CostManagement

Tax Platform

CentralizedProcurement

CrewManagement

Fuel Oil Sales

PlatformEmployeeRecordsManagement

CompensationManagement

Foreign-ShippingOperationSystem

ExpenseControl

Performance

ReportingManagement

Financial

SharedServices

InsuranceManagement

Vessel AssetsManagement

Settlement

Platform

Recruitment Management

SystemTraining Management

System

DocumentManagement

Company Notice

AdministrativeOffice

Domestic-shippingOperation (Phase III

Optimization)Foreign-shipping

OperationDomestic-shippingOperation IntegratingYinghai SystemFuel Procurement and

Sales

ProcurementManagement System

System MonitoringSystem

Purchase Requisition

Energy ConsumptionManagement System

MaterialsManagementReal-timeOperational DataSystemImplementation

CollectionPlatform

Crew ManagementIntegrated YinghaiSystem

Monitoring

Integration PlatformTo-do List IntegrationPlatformReport Management

DashboardEarly Warning

PlatformSMS PlatformCollection Platform

Unified PortalShared File System (Unified)

Socialized DataPlatform

Data Model

Master Data Platform

Analysis Indicator

ModelMachine Automation

Platform

Port Platform

Dry Bulk Index

Platform

Insurance....

Data Automation and Integration

Platform

Online Trading Platform

National and Industry Platforms

CollaborativeManagement

Operation System

Management

Vessel-end Operation

Shore-basedOperations

Inventory SystemInboundManagement

OutboundManagementInventoryCountingManagement

Spare PartsManagement

Cargo OwnerCharteringPlatform

TenderRelease

CargoTrackingPlatform

Shipowner

BidComparisonPlatform

Customer

ServicePlatform

Fuel OrderingPlatform

ShipownerEvaluationPlatform

20242025

To Be Confirmed

2026

Existing

Description

System Development and Timeline Distribution

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Digital and Intelligent Leadership, Smart Shipping Across the SeasEnvironmental, Social and Governance Report 2025

Digital and Intelligent Leadership, Smart Shipping Across the Seas

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Environmental, Social and Governance Report 2025

Digital Empowerment of Business DevelopmentThe Company continuously promotes the deep application and collaborative integration of key business operations. In 2025,multiple new digital system platforms were introduced to empower business management, effectively transforming the digitalinfrastructure into tangible business momentum.

Cooperative System Development

Proprietary Systems

To enhance ship-shore collaboration efficiency, the Company, in partnership with COSCO SHIPPINGTechnology Co., Ltd., developed a Vessel Management System. By 2025, the system had beendeployed on 60 self-operated vessels. It covers key functions including basic management, safetymanagement, energy efficiency management, system management, vessel repairs, and spare partsprocurement. The system provides end-to-end coverage—from fundamental administration to energyefficiency monitoring, from fuel and lubricant control to spare parts traceability—enabling interactiveship-shore management and significantly advancing vessel operations toward greater precision anddigitalization.

Achieving Digital Management Across the Vessel Lifecycle

Through the joint development of shared crew pool and a digital management platform tocomprehensively manage and update in real time crew members’ basic information, work history,certifications, training records, and onboarding/offboarding evaluations. The system supports fulllifecycle management of certifications, including registration, renewal, expiry alerts, and automaticupdates, ensuring continuous compliance of crew qualifications. Additionally, by integrating multi-dimensional evaluations with actual attendance data, the system enables precise payroll calculationand performance feedback, providing a solid data foundation for crew career development and theCompany’s talent reserve.

Establishing a Closed-Loop Crew Management Framework

Establish a unified customer management framework that fully records service processes andcustomer needs, categorizes customer attributes, and maps detailed customer profiles. Basedon shared customer records, the system strengthens cross-departmental business collaborationand, by conducting identity verification through the national business database, grading servicecustomers, and analysis of potential customer conversion value, provides a foundational reference fordifferentiated business strategies. It continuously refines customer profiles, enhancing service valueand fostering stronger customer engagement.

Enabling Precision Services and Cross-Department Collaboration

Leveraging the Bidding System, the Company expands its shipping capacity resources and establisheswin-win partnerships with downstream capacity suppliers. The system manages the entire processfrom capacity bidding to carrier evaluation, helping to select high-quality partners, efficiently activatesurplus downstream capacity, and enhance industry chain collaboration. Together, these effortsensure stable and reliable transportation services for customers while building a mutually beneficialecosystem.

Promoting Efficient Integration of Industry Chain Resources

As the first company in Pingtan to develop a precise, empowerment-oriented corporate tax filemanagement system, the Company leverages a data platform to integrate Domestic-ShippingOperation System, Vessel Management System, and Crew Management System. Following the reviewand approval of operating transactions, this integration enables automated financial posting and taxinvoice issuance, real-time tracking of invoice status for procurement activities in the Vessel and CrewManagement Systems, automatic verification of procurement invoices, and multi-company tax invoiceanalysis. Together, these functions create an integrated digital ecosystem for business, finance, andtaxation, enhancing overall operational efficiency.

Building an Integrated Digital Ecosystem for Business, Finance, and Taxation

VesselManagementSystem

CrewManagement

System

CustomerRelationshipManagementSystem

Bidding System

Tax System

Industry Exchange and Collaborative DevelopmentThe Company places great importance on learning from the digitalization best practices of industry-leading enterprises. Throughtechnological exploration and collaboration, it strengthens its own digitalization capabilities.Learning, Exchange, and ExplorationIndustry Visits and Exchanges

Leveraging the disciplinary strengths

of Quanzhou Vocational and Technical

University (QVTU), the Company has

conducted preliminary explorations in the

application of large data models in the

fueling sector. Drawing on the QVTU’s

industry-research advantages, a new

research topic has been developed to

analyze optimal procurement timing in

fueling business scenarios using data

models.

By organizing in-depth exchanges with companies such as COSCOSHIPPING Specialized, Longking, and Transsion Holdings, theCompany systematically absorbs industry-leading digitalizationpractices, providing a solid foundation for business innovation andprocess optimization. During these interactions, emphasis is placedon deeply integrating external experiences with the Company’sown scenarios to ensure efficient knowledge transfer and practicalapplication. This approach not only significantly enhances theteam’s technical capabilities and project efficiency, acceleratingthe digital transformation process, but also lays the groundwork forcontinuous innovation and strengthened market competitiveness.

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Financial Management System

Coordinate Office System

Insurance Management System

Insurance Management SystemTax System

Building on its core dry bulk shipping business, the Company focuses on an integrated approach that enhances internalmanagement and delivers services to cargo owners. Through a combination of external partnerships to develop informationplatforms and the construction of proprietary platforms, the Company continuously optimizes its business management systems,strengthens its data-driven capabilities, and provides robust support for the achievement of its strategic objectives.

Digital and Intelligent Leadership, Smart Shipping Across the SeasEnvironmental, Social and Governance Report 2025

Sound Governance and Compliance as the Foundation

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Environmental, Social and Governance Report 2025

Sound Governance andCompliance as the FoundationHighton Development consistently integrates the concept of sustainable development into its corporate governance framework.Centered on the Board of Directors, the Company has established a decision-making system with clear responsibilities and hightransparency and efficiency. By strengthening integrity management and deepening risk control through key initiatives, it buildsa robust foundation for sustainable development.

Governance for Sustainable DevelopmentCorporate GovernanceProtection of Investors’ Rights and InterestsCompliance and Risk ManagementBusiness Behaviors

Sound Governance and Compliance as the Foundation

Sound Governance and Compliance as the Foundation

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Environmental, Social and Governance Report 2025

Governance for SustainableDevelopment

ESG ManagementIn response to global sustainable development trends, the Company proactively aligns with relevant laws and regulations,continuously optimizing its ESG governance framework. The ESG concept is comprehensively integrated into the Company’sdevelopment strategy and all aspects of its operations.In 2025, the Company further advanced its ESG management efforts and continued to improve its sustainable developmentgovernance system by formulating and issuing theESG Management Policy. The policy establishes a three-tier ESG governancestructure: the Board of Directors as the highest leadership and decision-making body, the ESG Working Group (led by theCompany’s General Manager) as the coordination and execution support layer, and various departments and subsidiaries as theimplementing units. This structure clarifies roles and responsibilities within ESG governance, laying a solid foundation for theCompany’s long-term, stable, and sustainable development.

CaseParticipation in Listed Companies’ Sustainability (ESG) Reporting Training

In 2025, personnel from the Company’s Securities Investment Department attended the “High-QualityDevelopment Training Series for Listed Companies – Sustainability (ESG) Reporting” held by the Shanghai StockExchange (SSE) in Qingdao. By participating in this training, the Securities Investment Department staff furtherdeepened their understanding of the core requirements and latest developments in ESG information disclosure,helping to enhance the quality of the Company’s ESG reporting.

Internal ESG Training

Sustainable Development PhilosophyThe Company integrates the United Nations 2030 Sustainable Development Goals (SDGs) into its development strategy, adheringto the principles of sustainable management. By focusing on key areas and implementing targeted measures, the Companystrives to comprehensively enhance the quality and effectiveness of its ESG initiatives.

Highton Development ESG Governance Framework

Determine the Company’s sustainable development policies, strategies, and objectives;Oversee the assessment of sustainability-related impacts, risks, and opportunities;Monitor the implementation of sustainability-related initiatives and provide guidance as appropriate;Make decisions on major ESG-related matters;Review and approve the Company’s annual ESG report.Implement the Company’s ESG development strategies and objectives, and organize departmentsand subsidiaries to carry out ESG initiatives;Organize and promote the identification, assessment, and prioritization of sustainability-relatedimpacts, risks, and opportunities;Draft ESG policy documents, relevant topics, periodic work plans, and implementation plans;Collect and compile the Company’s ESG data, and prepare ESG reports and related documents;Organize ESG business training, and track the requirements and trends of the ESG policy;Perform other duties related to the ESG Working Group’s responsibilities.Assume primary responsibility within their respective areas, ensuring the daily management ofESG-related tasks in alignment with the Company’s ESG development strategies and objectives.Regularly report on the execution status and promptly submit ESG information.

Board ofDirectors

ESG WorkingGroup

DepartmentsandSubsidiaries

Talent ConceptSafety PhilosophyManagement Philosophy

ConceptProduct Culture

Working together as one andleveraging individual strengthsPrioritizing integrity and emphasizing

performance

Cherish life and respect the oceanBalancing standards with streamlined

practices, ensuring safety alongside

efficiency

Creating values for customers andrealizing dreams for striver

Devote to the vessel, and be accompanied

by the seaStrive for efficiency through hard workand pursue development through service

The Company actively conducts ESG training by combining external and internaltraining methods to enhance the understanding of ESG among relevant personnel.

Sound Governance and Compliance as the Foundation

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Environmental, Social and Governance Report 2025

SDGsResponse Measures

Serve the supply chains along the “Belt and Road” initiative by providing maritime transportation services forores, coal, grain, fertilizers, and general cargo, contributing to national food and energy security.Donate to and support maritime universities by establishing dedicated scholarships, promoting public welfareinitiatives.The Company actively responds to climate action, adhering to theParis Agreementand the IMO’s emissionreduction strategies. Through measures such as technological upgrades and operational optimization—includingshore power retrofits and the installation of energy-saving devices—it explores and promotes the use of cleanenergy, enhances vessel energy efficiency, and advances the maritime industry toward a green transition.The Company places great importance on marine biodiversity protection, strictly managing ballast water toprevent biological invasions, strengthening oil spillage emergency response capabilities, and optimizing vesselcoatings to avoid the discharge of harmful substances. These measures minimize the impact of operationalactivities on marine ecosystems, actively fulfilling the Company’s responsibility for marine ecologicalconservation.The Company has established and continuously improved its employee training system, formulated trainingmanagement policies, flexibly implemented both online and offline training programs, developed a professionalinstructor team, and introduced a mentorship system to comprehensively promote employee growth anddevelopment.Guided by capability and performance, the Company provides equal employment opportunities, promotesgender equality in the workplace, and fosters a fairer, more respectful, and more inclusive working environment.The Company adheres to the principles of fairness and impartiality in recruitment, builds a diverse talent pool,safeguards employees’ democratic rights, and effectively protects their legitimate rights and interests.The Company actively promotes digital transformation by developing intelligent shipping management systems,integrated decision-making and analytics platforms, optimizing business processes, and establishing serviceplatforms. These initiatives drive business innovation and development while enhancing core competitiveness.Through digital initiatives, the Company promotes the use of electronic documents, reducing paperconsumption, optimizing transportation efficiency, lowering carbon emissions, and advancing green shipping.The Company has established a scientific compensation and performance system to ensure fair and reasonableremuneration, provide clear promotion pathways, and foster the development of outstanding talent.Adhering to the management philosophy of “combining standardization with lean practices, and pursuingsafety alongside efficiency”, the Company has established an anti-corruption compliance system to uphold faircompetition, laying a solid foundation for building a strong and just organization.Through refined supply chain management, the Company has established a supplier evaluation and classificationmechanism, creating a fair and transparent collaboration framework and treating small and medium-sizedenterprises equitably. This ensures an efficient, safe, and stable supply chain. By working hand in hand withpartners, the Company fosters a business ecosystem grounded in peace and justice, co-creating value andsharing benefits.

Communications with StakeholdersThe Company consistently places a high priority on communications with stakeholders, striving to establish a diversifiedcommunication mechanism. It actively monitors and promptly responds to the concerns and demands of various stakeholders.By deepening collaborative efforts with all stakeholders, the Company fosters a unified force for development, jointly advancingsustainable corporate growth and achieving mutually beneficial outcomes.

StakeholdersKey Areas of ConcernCompany Response

Government/Regulatory Agencies

Shareholders

Employees

Communities

Customers

Suppliers

Public and Media

Lawful Tax paymentEmployment PromotionCompliant OperationsReturns to ShareholdersInformation DisclosureStable OperationsCompliant OperationsProtection of Basic RightsHealth and SafetyCareer DevelopmentCrew CareCommunity Contribution

Safe and Efficient ServicesEnhanced Transportation Capacity

Win-Win CooperationFair Competition

Information Transparency

Public Welfare and Charity

Comply with Laws and RegulationsFulfill Tax ObligationsImprove the Remuneration SystemIntegrity ManagementImprove Business Quality and EfficiencyDisclose Information Regularly

Ensure Fair Compensation and BenefitsEnhance the Safety Management System

Organize Volunteer Activities

Customer Service ManagementEnsure Cargo Safety

Responsible ProcurementSupplier Management

Annual ReportsPublic Welfare Donations

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Environmental, Social and Governance Report 2025

Analysis of Material Topics

In 2025, the Company conducted a materiality analysis of ESG topics. Following relevant guidelines and reporting standards, theCompany carried out and updated the materiality analysis through the following steps:

We continuously monitor the effectiveness of ESG practices, taking into account national policy directions, industrytrends, and the Company’s strategic layout. We systematically assess the key sustainability issues the Company faces,conduct in-depth analyses of internal operations, business relationships, and the external development environment,and accurately identify core stakeholder groups and their areas of influence.We carefully study relevant laws, regulations, and benchmarking research. Using the 21 topics outlined in theShanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 14 - Sustainability Report (for TrialImplementation)as a foundation, and based on the Company’s fundamentals and industry practices, while alsoconsidering external public opinion analysis and expert recommendations, the Company finalized a list of 24 materialtopics in 2025.We identified and assessed the material topics, and developed a materiality matrix based on two dimensions: impactmateriality and financial materiality.Through the 2025 stakeholder survey, the Company referenced external stakeholders’ assessments of the impactmateriality of each topic, and combined them with internal stakeholder feedback to analyze and evaluate the impactmateriality of each material topic, ultimately deriving a comprehensive impact materiality assessment. Financialmateriality was evaluated through internal stakeholder scoring, taking into account the likelihood of risks andopportunities occurring and the extent of their financial impact to judge and score each material topic.The results of the topic materiality assessment are summarized in the form of a matrix diagram.

Learning aboutthe Company’sActivities andBackgroundEstablishing a Listof Topics

StakeholderEngagement andTopic MaterialityAssessment

Topic ReportIn 2025, the Company, drawing on industry practices, added “Digitalization and Intelligent Development” as a material topic andmerged protection of shareholders’ rights and interests and ESG governance-related content into the “Corporate GovernanceCompliance” topic. The results of the materiality analysis are as follows:

Statement of

Materiality

Topics

Dual Material TopicsFinancial MaterialTopicsImpact MaterialTopicsIssues of Low

Importance

N/A Topics

Navigation Safety Management, High-Quality Customer Service, Data Security and Customer Privacy ProtectionEnergy Utilization, Response to Climate Change, Waste Disposal, Digitalization and Intelligent Development, Compliance andRisk ControlEnvironmental Compliance Management, Employee Rights and Development, Occupational Health and Safety, CorporateGovernance ComplianceCircular Economy, Water Resource Utilization, Pollutant Emissions, Ecosystem and Biodiversity Protection, Supply ChainSecurity, Equal Treatment of Small and Medium-Sized Enterprises, Contribution to Society, Rural Revitalization, Anti-Commercial Bribery and Anti-Corruption, Anti-Unfair Competition, Communications with Stakeholders, Due DiligenceTechnology Ethics (the Company’s business scope does not involve scientific research, technology development, or otheractivities sensitive to technology ethics, such as life sciences and artificial intelligence)Note:

1. Dual materiality topics refer to those of both financial materiality and impact materiality.

2. Financial materiality topics refer to those of financial materiality only. Financial materiality refers to whether the corresponding topic is expected

to have a significant impact on the Company’s business model, business operations, development strategy, financial position, operation results, cashflows, financing methods and costs in the short, medium and long term.

3. Impact materiality topics refer to those of impact materiality only. Impact materiality refers to whether the Company’s performance on the

respective topic will have an actual or potentially significant impact on the economy, society and the environment.

Matrix of Material Topics

Materiality to Corporate Finance

Impact Materiality on Economic, Social, and Environmental Aspects

Environmental Compliance Management

Occupational Health and Safety

Contribution to Society

Rural Revitalization

Employee Rights and Development

Anti-Unfair CompetitionDue DiligenceEqual Treatment of Small and Medium-Sized Enterprises

Supply Chain Security

Navigation Safety Management

High-Quality Customer ServiceData Security and Customer Privacy ProtectionDigitalization and Intelligent DevelopmentAnti-Commercial Bribery and Anti-Corruption

Compliance and Risk ControlPollutant Emissions

Water Resource Utilization

Circular Economy

Response to Climate Change

Energy Utilization

Waste DisposalEcosystem and Biodiversity Protection

Corporate Governance Compliance

Communications with Stakeholders

Environmental ComplianceManagementEnergy UtilizationResponse to Climate ChangeCircular EconomyWater Resource UtilizationPollutant EmissionsWaste DisposalEcosystem and BiodiversityProtection

Employee Rights and DevelopmentOccupational Health and SafetyNavigation Safety ManagementHigh-Quality Customer ServiceData Security and Customer Privacy ProtectionDigitalization and Intelligent DevelopmentSupply Chain SecurityEqual Treatment of Small and Medium-SizedEnterprisesContribution to SocietyRural Revitalization

Corporate Governance ComplianceAnti-Commercial Bribery and Anti-CorruptionAnti-Unfair CompetitionCompliance and Risk ControlCommunications with StakeholdersDue Diligence

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Environmental, Social and Governance Report 2025

Corporate Governance

Governance Framework

The Company strictly complies with relevant laws and regulations, including theCompany Law of the People’s Republic ofChina and the Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 - Standardized Operation.It hasestablished a Board of Shareholders and a Board of Directors, forming an internal governance structure characterized by cleardivision of responsibilities, effective checks and balances, scientific decision-making, and coordinated operations. This structureensures lawful and compliant operations, timely and accurate information disclosure, and standardized and effective internalcontrols, effectively safeguarding the interests of the Company and its investors.

The Company convenes and holds general meetings of shareholders in strict accordance with theShanghai Stock ExchangeListing Rules, the Articles of Association, and the Rules of Procedure for Board of Shareholders.It treats all shareholders equally,ensuring that all shareholders, particularly minority shareholders, enjoy equal status and rights.

Board of Shareholders

Key Performance

In 2025, the Company held a total of

general meetings of shareholders,including

annual shareholders' meeting and

special meeting of shareholders,during which

proposals were reviewed and approved.

As the Company’s decision-making body, the Board of Directors performs its duties in accordance with relevant laws andregulations and theArticles of Association, focusing on the Company’s development strategy and faithfully fulfilling theresponsibilities of Board of Directors entrusted by shareholders. The Board of Directors has established an Audit Committee,a Nomination Committee, a Compensation and Evaluation Committee, and a Strategic Committee. Each committee carries outits duties in accordance with theArticles of Associationand the rules of procedure for the respective committees, providingobjective and prudent evaluations of major company matters and enhancing the scientific efficiency of the Board of Directors’decision-making.

Board of Directors

Key Performance

In 2025, the Board of Directors held

meetings, reviewing and approving

proposals, with adirector attendance rate of

%;A total of

committee meetings were held, reviewing

proposals, including:

Audit Committee:

meetings,

proposals reviewed;Nomination Committee:

meetings,

proposals reviewed;Strategic Committee:

meetings,

proposals reviewed;Compensation and Evaluation Committee:

meetings,

proposals reviewed.

Board ofShareholders

Board of

Directors

General

Manager

Strategic CommitteeNomination Committee

Audit CommitteeCompensation and Evaluation

Committee

Board SecretaryBoard OfficeSecurities Investment

Department

President’s Office

Legal Affairs Department

Asset Management

Department

Audit and Supervision

Department

Foreign Trade and ShippingCenter

Domestic Trade and ShippingCenter

Marketing Center

Ship Management Center

Financial Management Center

Digital and IntelligentManagement Center

Human Resources andAdministration Center

Highton Development Organizational Structure

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Environmental, Social and Governance Report 2025

Audit CommitteeNomination CommitteeStrategic CommitteeCompensation andEvaluation Committee

The Company’s directors are elected or appointed in accordance with theCompany Law of the People’s Republic of ChinaandtheArticles of Association. Based on the Company’s development needs, the selection of directors fully considers a balancedmix of gender, age, professional expertise, educational background, and academic qualifications, actively promoting diversitywithin the Board of Directors. Directors leverage their professional expertise to provide scientific and reasonable advice on theCompany’s business decisions and standardized operations.

Diversity of Board of Directors

The Company’s independent directors consistently uphold professionalism and independence, strictly following relevant laws,regulations, and the Articles of Association, and faithfully and diligently performing their duties. The Company emphasizes theactive role of independent directors in corporate governance and has established rules for independent directors’ meetings,ensuring that their contributions are fully utilized to enhance the scientific and professional quality of Board of Directors’decision-making.

Board Independence

The Company strictly complies with theCompany Law of the People’s Republic of China, theCorporate Governance Code forListed Companies, theArticles of Association, and the Company’s remuneration management policies. It regularly disclosesthe remuneration of directors and senior management in the annual report, materials of the general meetings of shareholders,or relevant announcements. The actual remuneration received by all directors and senior management as of the end of theReporting Period is detailed in the Company’s 2025 Annual Report.The Company has established policies such as theRemuneration Management MeasuresandPerformance Management System,creating a comprehensive remuneration and performance evaluation framework for senior management. By combining short-term incentives with long-term planning, the Company aligns the personal interests of management team members with theCompany’s long-term sustainable development. This approach effectively motivates senior management, enhances operationalefficiency and quality, and ensures the achievement of the Company’s business objectives. By establishing a comprehensiveevaluation system that includes KPIs such as daily charter rate compliance, performance growth rate, profit target achievementrate, labor efficiency improvement, and internal operational efficiency, as well as ESG indicators including metrics for safety andenvironmental protection, employee training, and investor relations management, the Company combines short-term and long-term incentives. This approach drives improvements in operational management and promotes the Company’s sustained andhealthy development.In addition, the Company has implemented stock and stock option incentive plans to reward personnel in key positions. Theincentive program covers directors, senior management, core management personnel, and key (technical) business staff. Eligibleparticipants are granted restricted stocks and stock options, effectively aligning the interests of shareholders, the Company, andthe core team members. This further establishes and strengthens a long-term incentive and restraint mechanism, encouraging allparties to focus collectively on the Company’s long-term development.

Remuneration of Directors and Senior ManagementGender StructureAge StructureEducational Background Structure

Whether IndependentDirectors Serve as the

ChairmanNon-IndependentDirectors (Person)Independent Directors

(Person)

YesYesNoYesProfessional Background of Independent

Directors

In 2025, the Company systematically revised theRules of Procedure of the Board of Directors, theWorking System forIndependent Directors, and the working rules of relevant committees, further clarifying the rights and responsibilities ofindependent directors and optimizing decision-making procedures, thereby effectively ensuring the Board’s standardized,independent, and efficient performance of its duties. Through institutional improvements and dedicated training for directors, theeffectiveness of Board operations and the scientific rigor of decision-making continued to improve, with the role of independentoversight and checks and balances further strengthened. The Company comprehensively presented its governance achievementsthrough the annual Board of Directors’ work report, highlighting the Board’s critical role in promoting the Company’s steadydevelopment. During the Reporting Period, the Company conducted both self-evaluations and external evaluations of Boardeffectiveness through questionnaires, focusing on dimensions such as major decision-making, strategic leadership, corporategovernance, risk management and control, and routine oversight, and collected feedback.

Board Effectiveness Evaluation

Male：6

Female：1

Aged 50 and above：5Bachelor’s Degree and Above：6

Aged 30–50：2Below Bachelor’s Degree：1

Key Performance

As of the end of the Reporting Period, the Company’s Board of Directors comprised

members,including

female directors, representing

14.29

%; there were

independent directors,accounting for

42.86

% of the Board.

ProfessionalBackgroundAccounting

LawShipping

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Environmental, Social and Governance Report 2025

Protection of Investors’ Rights andInterests

Investor Relations Management

The Company has established systems such as theInvestor Relations Management Systemand theMajor Business andInvestment Decision Management System. It discloses information through channels including the Securities Times, ChinaSecurities Journal, Shanghai Securities News, and the CNINFO website. By leveraging online performance briefings, on-siteresearch visits, email communication, and investor relations interaction platforms, the Company strengthens communicationand engagement with investors and potential investors. It continuously improves the mechanisms for investor communication,reception, and service, addresses investors’ inquiries regarding the Company’s business development, and actively showcasesthe Company’s operational achievements to the capital market while conveying the Company’s investment value.The Company actively conducts specialized investor engagement activities and participates in strategy meetings androadshow events. Adhering to a “Going Out and Bringing In” approach, it has built a diversified and multi-dimensional investorcommunication platform, achieving a simultaneous enhancement of investor relations management effectiveness and corporatestrategic transparency. In 2025, the Company held a total of

performance briefings throughout the year.

CaseThe 2025 Drybulk Shipping Market Convention & Vessel Visit was successfully heldFrom August 25 to 26, 2025, Highton Development successfully held the “2025 Drybulk Shipping Market Convention& Vessel Visit” in Ningbo and Zhoushan. Leading institutional investors and securities analysts were invited to jointlydiscuss market prospects and visit the Company’s 180,000-ton dry bulk vessel. Through expert presentations andexecutive interactions, the guests gained a deeper understanding of the dry bulk shipping market and strengthenedtheir trust in the Company.

On-Site Photos of Vessel Visit

Information Disclosure

The Company has formulated and implemented theInformation Disclosure Management System, aiming to establish astandardized and orderly investor relations management mechanism. By regularly conducting investor interaction andengagement activities, the Company continuously enhances the standardization of its information disclosure, ensuring open,transparent, and efficient communication with investors, safeguarding their legitimate rights and interests, and continuouslyenhancing shareholder value. During the Reporting Period, the Company was not subject to any penalties for violations related toinformation disclosure.In 2025, the Company publicly disclosed a total of

periodic reports and

interim announcements.Protection of Shareholders’ Rights and InterestsThe Company attaches great importance to ensuring reasonable investment returns for its shareholders while balancing theCompany’s capital requirements and principles of sustainable development. In strict compliance with relevant regulatoryrequirements, the Company has formulated theFujian Highton Development Co., Ltd. Shareholder Dividend Return Plan forthe Next Three Years (2025-2027)to ensure that its profit distribution policy is sustainable, stable, and scientifically sound.The Company distributes dividends to shareholders in the form of cash, shares, or a combination of both. Subject to theCompany’s profitability, normal operations, and long-term development, priority is given to cash dividends to provide investorswith long-term and stable investment returns. For the 2025 fiscal year, the Company plans to distribute a total cash dividendof RMB

9,277.71

(in ten thousand yuan) (including tax), representing

19.95

% of the net profit attributable toshareholders of the listed company.

CaseHighton Development participated in the “I Am a Shareholder” special exchange eventfor SSE-listed companiesOn December 4, 2025, Highton Development, as a core participant, collaborated with China Securities and the SSEto successfully host the “I Am a Shareholder” visit to listed companies. Company executives provided investors with asystematic introduction to the business model and development strategy and engaged in in-depth discussions on keyconcerns such as financial performance. Through on-site presentations and face-to-face communication, investors gaineda direct understanding of the Company’s professional operational capabilities and corporate value. The event effectivelybuilt a bridge for transparent communication, strengthened investor trust, and enhanced the Company’s recognition inthe capital market.

“I Am a Shareholder” Visit to SSE-Listed Companies

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Environmental, Social and Governance Report 2025

Type ofRisk

Description of Risk

Explanationof FinancialImpact

ImpactDuration

Impacton ValueChain

Response Measures

Policyand Legal

Risks

Under the complex international political environmentand geopolitical landscape, changes in economicsanctions imposed by certain countries and port/ship regulatory policies may pose compliance risks.If sanctions and regulatory compliance risks arenot adequately identified, or if the complexity andfrequent changes of relevant rules prevent timelyand effective risk recognition, the Company mayface investigations, penalties, sanctions, or vesseldetentions, resulting in business disruption andeconomic losses.

CostincreaseIncomedecrease

Short,mediumand longterms

Operations

Regularly conductcompliance and sanctionsrisk identification andassessment;Improve internal controlsystems and updateoperational manuals in atimely manner;Optimize shipping routes toachieve route diversification.

ReputationRisks

Failure to effectively implement the requirementsof relevant countries or ports, or to comply withapplicable sanctions and regulatory rules, may resultin compliance penalties and negatively affect theCompany’s reputation.

IncomedecreaseDamage toreputation

Short,mediumand long

terms

Operations

In the event of a compliancepenalty, proactivelydisclose information andcommunicate promptly withstakeholders to mitigatenegative impact.

Compliance and Risk Management

GovernanceThe Company has improved its refined management system to enhance operational management and ensure the complianceof business operations and the effectiveness of risk management. Based on the internal control system, the Company hasestablished internal control policies such as theMajor Information Internal Reporting Systemand continuously strengthens itsrisk, compliance, and internal control management framework. Internal management systems have been formulated for keyoperational areas including financial management, human resources, safety management, and material procurement, promotingthe implementation of refined management and enhancing risk prevention capabilities. At the same time, the Audit andSupervision Department performs its core responsibilities in internal control development and daily oversight. In terms of internalcontrol development, it evaluates the reasonableness of the internal control environment, including corporate governance andrisk management systems, improves internal control measures, and develops internal control and audit manuals to standardizeinternal operations and audit processes. In terms of daily oversight, it conducts internal control audits, operational inspections,special audits, and on-site spot checks to strengthen compliance and risk management across business processes. In addition,the Company reinforces employees’ understanding of internal control and compliance management and raises legal awarenessthrough training and other activities, thereby laying a solid compliance foundation for the Company’s stable development.

Strategy

Enhancing Risk Control

The Company strictly complies with theEnterprise Income Tax Law of the People’s Republic of Chinaand theTax Collectionand Administration Law of the People’s Republic of China, conscientiously fulfilling its tax obligations. It has established acomprehensive financial management system and arranges for financial personnel to participate in various trainings organized bytax authorities, banks, government departments, or professional training institutions, ensuring timely access to new policies andupdated information.The Company has formulated theRelated-Party Transaction Management Measuresto regulate related-party transactions,ensuring that such transactions are conducted based on the principles of fairness, impartiality, and transparency. It strictlyadheres to the information disclosure system to ensure that material information regarding related-party transactions is disclosedin a timely, accurate, and comprehensive manner.

Impact, Risk, and Opportunity Management

Improvement of Internal ControlThe Company strictly follows the requirements of the Corporate Internal Control Standards to establish and effectively implementa comprehensive internal control system. It has developed detailed internal control policies and conducts regular evaluations ofinternal control effectiveness as well as compliance risk assessments. A tracking checklist is maintained to identify and monitorissues, and relevant departments are organized to implement corrective actions in a closed-loop manner. During the ReportingPeriod, the Company did not identify any material or significant deficiencies in internal control and maintained effective internalcontrol over financial reporting in all material aspects.Building Risk Management CapacityDuring the Reporting Period, the Company actively organized internal trainingprograms focusing on strengthening compliance operations and enhancingenterprise risk prevention capabilities, helping employees build a robust riskdefense. At the same time, employees were selected to participate in externaltraining covering key areas such as cash flow optimization and accountsreceivable management strategies, contract and tax review, tax optimization andcompliance framework development, decision-making based on financial analysis,and penetrative supervision and enterprise risk management. These initiativesimproved employees’ ability to respond to risks and enhanced their overallbusiness competence in a complex commercial environment.

In 2025, the Company did not experience any major risk incidents or significant legal or regulatory violations.

Metrics and Targets

External Risk and Compliance Training

Internal Risk and Compliance Training

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Environmental, Social and Governance Report 2025

Business BehaviorsThe Company consistently regards integrity and anti-corruption as fundamental pillars of its development. Upholding theprinciple of honest and ethical operations, the Company strictly complies with national and local laws and regulations, includingtheAnti-Monopoly Law of the People’s Republic of Chinaand theAnti-Unfair Competition Law of the People’s Republic of China.

It has established relevant policies and systems on anti-commercial bribery, anti-corruption, and the promotion of integrity inprofessional conduct. In 2025, the Company did not receive any lawsuits or legal cases related to commercial bribery, corruption,or unfair competition.

Anti-Commercial Bribery and Anti-CorruptionStandardizing Integrity ManagementThe Company places great importance on building an integrity-driven enterprise and strictly complies with relevant lawsand regulations. It has formulated internal policies such as theAnti-corruption Management System, theSupervisionManagement Measures, and theGift and Cash Registration, Submission and Disposal System, which set out provisions onintegrity investigations, whistleblowing management, related incentives and disciplinary actions, and integrity requirements forsuppliers. These measures are designed to strengthen employees’ professional ethics and foster a clean, upright, and efficientcorporate culture. As the highest body of responsibility and oversight, the Board of Directors bears ultimate responsibilityfor the formulation of the Company’s anti-bribery and anti-corruption policies, the evaluation of their effectiveness, and thefinal outcomes of their implementation. The Audit and Supervision Department coordinates and advances integrity buildingand oversight responsibilities. It is responsible for integrity education and communication, system improvement, and theestablishment of whistleblowing channels, and organizes the investigation of integrity-related leads, the handling of cases, andthe public disclosure of outcomes. It also reports regularly to the General Manager on work progress, risk conditions, and thehandling results of major cases. In 2025, the Company conducted

internal special audits on integrity and experienced nomajor corruption incidents.Integrity inEmploymentand Cooperation

All employees are required to sign anIntegrity Commitment Letter. In 2025, the signing rate of integrity commitmentletters among the Company’s shore-based employees was 100%.When negotiating business with suppliers or partners, the Company requires the signing of anIntegrity CommitmentLetter.ReportingChannels

The Company has established theInternal Reporting System to improve and formalize reporting channels.Tel.: 0591-83358750;Mail: Audit and Supervision Department, 42/F, Shenglong Global Tower, No. 23 Changting Street, Ninghua Subdistrict,Taijiang District, FuzhouOnline Reporting: lianzheng@fz-highton.comProtection ofWhistleblowers

The Audit and Supervision Department strictly protects the confidentiality of whistleblowers’ information, with designatedpersonnel responsible for the receipt and registration of reports.During investigations, investigators strictly comply with the Company’s rules and regulations and maintain strictconfidentiality regarding the matters under investigation. Any violation of these requirements will be subject to strict andsevere disciplinary action by the Company.When granting whistleblowing rewards or publicizing related cases, the Company strictly prohibits the disclosure of anyinformation that could identify whistleblowers.IntegrityInvestigations

The Company has established and continuously improved its integrity investigation mechanism. The Audit and SupervisionDepartment is responsible for investigating cases involving suspected violations of discipline or regulations by employeesand submitting investigation reports upon completion. Any violation of the Company’s Anti-corruption Management Systemwill be subject to disciplinary action as appropriate.

Whistleblowing Handling Process

PhoneEmailMailWeChat

In-personComplaints

Relevant Departments

Outside the scope of

report acceptanceWithin the scope ofreport acceptance

Substantiated

Unsubstantiated:

feedback provided

Reporting Channels

Audit and Supervision DepartmentAudit and Supervision Department conducts apreliminary review of the reported matters

Collection of information, investigation andevidence gathering, and verification of facts

Prepare an investigation report and submit it tothe relevant responsible person.Follow-up on handling resultsFiling and archivingEnd

Written feedback on thehandling results providedwithin ten working days

Audit andSupervisionDepartmenttransfersrelevantmaterials

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Environmental, Social and Governance Report 2025Strengthening Integrity AwarenessThe Company attaches great importance to cultivating employees’ awareness of integrity. Through measures such as “SunshineTalks” themed onboarding training for new employees, the Company provides explanations of national laws and regulations onanti-corruption and related matters, and actively carries out communication, education, and training on anti-corruption and anti-bribery, continuously strengthening employees’ awareness of integrity. The Company also emphasizes the development of aculture of integrity by installing suggestion boxes and displaying integrity-themed posters on its premises. During the ReportingPeriod, the Company conducted integrity awareness campaigns for suppliers, laying a solid foundation of probity for theCompany’s sustainable and healthy development.

In 2025, the Company conducted

anti-commercial bribery and anti-corruption training sessions.Among these,

sessions were provided to directors and senior management,with a training coverage rate of

% for directors and senior management.A total of

employee attendances participated in anti-commercial bribery and anti-corruption training.

Anti-Unfair CompetitionThe Company adheres to the principles of integrity in operations and fair competition, and strictly complies with and implementstheAnti-Unfair Competition and Anti-Monopoly Management Systemto ensure that all business activities are lawful andcompliant. The Company has established a scientificand standardized management system. The Board ofDirectors is responsible for the formulation of anti-unfair competition and related policies, the evaluationof their effectiveness, and the final outcomes of theirimplementation. The Audit and Supervision Departmentserves as the functional department responsible for anti-monopoly and anti-unfair competition management,and is in charge of formulating and promoting relevantmanagement systems covering key areas such asemployee codes of conduct and marketing practices. Itprovides guidance and supervision over related activitiesand focuses on preventing unfair competition practices,including false advertising, commercial bribery, andinfringement of trade secrets, thereby strengtheningthe Company’s compliance defenses at both theinstitutional and governance structure levels. During theReporting Period, the Company revised and improved theEmployee Handbook, explicitly prohibiting any form of monopoly orunfair competition. It strictly forbids the disclosure of the Company’s trade secrets or the improper acquisition of competitors’information, and prohibits entering into monopoly agreements with competitors or counterparties that exclude or restrictcompetition. These revisions further strengthened employees’ code of conduct regarding anti-unfair competition.In 2025, the Company conducted specialized anti-unfair competition training internally to strengthen awareness-raisingand education for employees and business partners, enhancing their understanding and capabilities for compliant and faircompetition. At the same time, shore-based employees were required to sign confidentiality commitment letters, and businesspartners were encouraged to fulfill their compliance commitments, continuously strengthening legal awareness and compliantpractices on both sides and jointly safeguarding a fair and competitive business environment.

Conducting Internal Anti-Unfair Competition TrainingNew Employee Training – Sunshine Talks

Integrity Culture Promotional PostersAnti-Corruption and Anti-Bribery Training for Business Partners

Key Performance

Green and Low-Carbon, Safeguarding the Ecosystem

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Environmental, Social and Governance Report 2025

Green and Low-Carbon,Safeguarding the EcosystemIn the face of global climate challenges, Highton Development actively responds to the national “Dual-Carbon” targets, promotesgreen transformation, and implements climate actions, steadily advancing toward a greener path in the journey of protecting theEarth’s ecosystem.

Green and Low-Carbon, Safeguarding the Ecosystem

Green and Low-Carbon OperationStrengthening Environmental ManagementOptimizing Resource UtilizationBiodiversity Conservation

Green and Low-Carbon, Safeguarding the Ecosystem

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Green and Low-Carbon OperationWith the issue of carbon emissions in the shipping industry receiving heightened attention from the international community,requirements, standards, and regulations for low-carbon and environmentally friendly shipping have been continuouslystrengthened under the ongoing implementation of theParis Agreement. In April 2025, the Marine Environment ProtectionCommittee(MEPC) of IMO approved the draft of “IMO Net Zero Framework”, which include new standards for ship fuels and aGHG emissions pricing mechanism. This marks an important step forward for the IMO in establishing a legally binding globalframework for reducing GHG emissions from ships. To align with the inevitable global trend of sustainable development in theshipping industry—characterized by green, energy-efficient, low-carbon, and environmentally friendly practices—the Companycontinuously improves its internal governance system. By identifying, assessing, and actively responding to the risks andopportunities posed by climate change, the Company implements energy-saving and emission-reduction measures, therebyenhancing its capacity for sustainable development.

Governance

The Company places great importance on climate change. To ensure the orderly implementation of climate governance, ithas established an ESG governance structure composed of the Board of Directors and the ESG Working Group. The Board isresponsible for providing leadership and oversight on climate-related matters, as well as formulating strategies, policies, andregulations related to climate change. The ESG Working Group is responsible for the operational execution, including assessingclimate-related risks and opportunities and developing and implementing climate response measures.The Company has consistently adhered to a development model that is resource-efficient and environmentally friendly. Ithas established management systems such as theProcedure of Energy Saving. The General Manager, as the primary personresponsible for energy management, is in charge of regularly reviewing energy management reports and overseeing relatedmatters. The Ship Management Center leads the daily management of energy utilization, while functional departments suchas the Engine Department and the Marine Department are responsible for the proper use and control of energy within theirrespective areas. For onshore office operations, the Company has formulated theOffice 6S Management System, ensuringthat lighting and air-conditioning equipment are used reasonably while meeting normal work requirements, thereby conservingenergy.

Case

Participation in the Inaugural Conference of the National Industry-Education IntegratingCommunity for Green and Intelligent Shipping IndustryOn September 19, 2025, the inaugural conference of the National Industry-Education Integrating Community for Greenand Intelligent Shipping Industry was held at Quanzhou Ocean Institute. Highton Development’s subsidiary, Dai QinInternational, participated in the conference as a board member representative of the Company. Moving forward, it willleverage the parent company’s resources in fleet capacity and talent development to actively engage in the community’scollaborative initiatives, jointly promoting the development of green and intelligent shipping. The community is jointlyled by Shandong Shipping Corporation, Shanghai Maritime University, and Quanzhou Ocean Institute, in collaborationwith industry organizations, academic institutions, enterprises, and research institutes. Its goal is to establish an industry-education integrated cloud service ecosystem, promote the green and intelligent transformation of the shipping industry,and cultivate high-quality technical talent.

Governing Unit

4241

Conference Venue

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Strategy

Risk TypeRisk Description

Explanation ofFinancial Impact

ImpactDuration

Impact on Value

Chain

Response MeasuresPolicy andLegal Risks

With the deepening implementation of China’s “Dual-Carbon” targets and the IMO’s strategyfor reducing greenhouse gas emissions from ships, global regulations on carbon emissionsin the shipping industry are becoming increasingly stringent, imposing higher compliancerequirements on ship energy efficiency and carbon intensity.

Cost increaseLong-termOperations

Closely monitor domestic and international shipping environmental regulations and policydevelopments to ensure that company operations remain compliant and can adapt promptly toregulatory changes.

TechnologicalRisks

To comply with MARPOL’s mandatory requirements for ship energy efficiency, the Companyneeds to continuously introduce and apply various energy-saving technologies and equipmentto drive fleet technological upgrades.

Cost increaseMid-termOperations

Comprehensively promoted the installation of streamlined housings and hub vortex absorbedfins across the fleet, and actively evaluate the application of energy-saving technologies suchas axle generators and variable-frequency control systems. In conjunction with the formulationand implementation ofThe Ship Energy Efficiency Management Plan (SEEMP), set clear energyefficiency targets and implementation milestones, optimize resource allocation, and continuouslyreduce ship energy consumption through refined management.

Market Risks

Against the backdrop of accelerated global clean energy development, customer preferencesfor low-carbon energy products and green shipping services are increasing. The Company’scurrent main cargoes are coal and other dry bulk goods, and in the future, it may face businesspressure from structural adjustments in related shipping demand.

Income decreaseLong-term

OperationsDownstream

Steadily advance ship energy-saving retrofits and fleet upgrades to support the transition of thebusiness structure toward green and low-carbon operations. While consolidating existing dry bulktransport business, enhance adaptability and competitiveness in the global market.

ReputationRisks

If the Company fails to effectively implement requirements in energy efficiency management,emission reduction practices, and environmental information disclosure, it may lead tocompliance issues or environmental incidents, thereby affecting the trust of investors,customers, and other stakeholders, and damaging the Company’s brand reputation.

Income decreaseDamage toreputation

Long-term

OperationsDownstream

Actively implement the concept of green shipping, improve the quality and transparency ofenvironmental information disclosure, and strengthen effective communication with investors,customers, and other stakeholders to maintain the Company’s image as a responsible enterprise.

Acute Risks

Extreme marine weather events such as typhoons and tsunamis can affect safe ship navigation,causing accidents that result in vessel and cargo damage, personal injury or loss, disruption ofshipping routes, and delays in transportation schedules.

Cost increaseFixed assetsdepreciation

Short-term

OperationsDownstream

Develop contingency plans for extreme weather, such as typhoon prevention and responsemeasures, clearly define emergency work deployment, and effectively safeguard the safety ofpersonnel and vessels.

Chronic Risks

Persistent high-temperature variations and rising sea levels may affect shipping routes andschedules, as well as cargo loading, unloading, and transportation, potentially causing delays incargo delivery.

Income decreaseCost increase

Long-term

OperationsDownstream

Continuously monitor long-term changes in business environments such as shipping lanes andports, and plan routes and onboard operations accordingly to ensure smooth completion oftransportation services.

Based on global shipping development trends and the Company’s own business characteristics, the Company conducts in-depth identification, assessment, and analysis of potential climate-related risks and opportunities it faces. On this basis, it actively adjusts its business developmentstrategies and resource allocation to enhance its adaptive capacity in responding to climate change.

Transformation Risks

Physical Risks

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Time definitions:

When describing the time horizon of risks and opportunities, we categorize them into three periods to more clearly reflect their potential impact on the Company’s future development: Short-term: Within 1 year after the end of the Company’s sustainability Reporting Period (inclusive of 1 year); Medium-term: 1 to 5 years after the endof the Company’s sustainability Reporting Period (inclusive of 5 years); Long-term: More than 5 years after the end of the Company’s sustainability Reporting Period.

OpportunityType

Description

Explanation ofFinancial Impact

ImpactDuration

Impact on ValueChain

Response Measures

ResourceEfficiency

By implementing ship energy-saving upgrades and promoting digital and intelligent businesstransformation, resource consumption can be effectively reduced, and vessel operationalefficiency improved.

Cost reductionShort-termOperations

Continue carrying out energy-saving retrofit projects and implement refined managementof indicators such as fuel consumption and spare parts usage to enhance vessel operationalefficiency;Actively explore innovative business models based on the “digitalization + shipping” approach tocomprehensively improve the Company’s digital and intelligent management capabilities.

Energy Source

Reducing the use of conventional energy and transitioning to low-emission alternative energycan optimize the energy structure, lower pollution control costs, and meet the demand for low-carbon shipping services while ensuring stable energy supply.

Cost reductionIncome increase

Long-term

UpstreamOperations

Actively apply clean energy and explore the feasibility of biomass fuels;Retrofit more operating vessels with shore power systems to reduce conventional fuelconsumption and lower carbon emissions.

MarketOpportunities

The global green transition is driving new demand for low-carbon shipping services. Increasingcustomer preference for green supply chains presents emerging opportunities for the Companyto expand services and secure new orders.

Income increaseLong-term

OperationsDownstream

While actively expanding the global dry bulk shipping network, continuously strengthen shipenergy efficiency management and green operations, enhance low-carbon shipping servicecapabilities, meet customer demands for green supply chains, and gain a competitive marketadvantage.

Adaptability

Expanding the global route network and improving vessel operational efficiency can bring morebusiness opportunities, enhance the Company’s capacity to response to climate change, andmaintain market competitiveness.

Cost reductionIncome increase

Long-term

Upstream

OperationsDownstream

Gradually improve a more extensive transport network, extending services globally;Develop a light-asset operational model to ensure a high degree of alignment between fleet size,capacity structure, and route demand, thereby maintaining operational stability and efficiency andbetter adapting to market needs and uncertainties brought by climate change.

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Impact, Risk, and Opportunity Management

The Company continuously strengthens its climate change risk management by identifying and assessing climate-relatedrisks and opportunities that may affect its operations. Based on the Company’s actual situation, it develops and timely adjustsresponse strategies.To further enhance the Company’s capacity to adapt to climate change and ensure effective control and response to relatedrisks, the Company adheres to a low-carbon operational model and continuously optimizes vessel performance. By applyingshore power, retrofitting energy-saving equipment, and implementing refined operational management, it steadily improvesenergy utilization efficiency and reduces greenhouse gas emissions. The Company has also established a comprehensiveemergency management system to prevent and mitigate the adverse impacts of natural disasters and extreme weather events,safeguarding personnel and vessel safety and laying a solid foundation for sustainable development.

Response to Extreme Weather

The Company has established theHeavy Weather Sailing Guidelinesto standardize safe operational procedures for shipsnavigating in adverse conditions such as strong winds and high waves. In addition, it has formulated related procedures includingtheTyphoon Preparedness ProceduresandTyphoon Contingency Plan, and prepares an annual typhoon prevention and responseplan. Before each typhoon season, the Company holds an annual typhoon preparedness meeting, establishes a TyphoonPrevention and Response Command Team to oversee vessels’ typhoon-related operations, coordinate production schedules, andstrengthen monitoring of sea conditions and weather, as well as tracking and analyzing typhoon trends. At the same time, theCompany urges all ship captains to conduct comprehensive inspections and maintenance of vessel equipment, ensuring thatall systems are ready for immediate use and in good condition during emergency typhoon operations, thereby continuouslystrengthening the capability to prevent and respond to extreme weather.

Metrics and TargetsThe Company actively responds to global calls for greenhouse gas reduction, aligning with China’s national goals of “carbonpeaking by 2030” and “carbon neutrality by 2060”, as well as the international2023 IMO Strategy on Reduction of GHGEmissions from Ships. Through energy-saving retrofits, vessel energy efficiency management, and other measures, the Companycontinuously promotes green transformation, aiming to achieve carbon neutrality by 2060.The Company continuously monitors vessel carbon intensity indicator (CII) in accordance with operational conditions and IMOrequirements, and actively implements measures such as vessel retrofits to promote the optimization and improvement of vesselcarbon intensity ratings.

Key Performance2024Unit

tCO

etCO

e/RMB 1 million (revenue)tCO

etCO

etCO

e

527,262.94

144.11

526,695.97

566.97

/

Total GHG EmissionsGHG Emission IntensityDirect Greenhouse Gas Emissions (Scope 1)Indirect Greenhouse Gas Emissions (Scope 2)Other Indirect Emissions (Scope 3)

2025

771,778.22

173.71

771,010.72

591.12

176.38

Note: Scope 1 includes carbon emissions from self-owned dry bulk vessels, multipurpose heavy-lift vessels and official vehicles; Scope 2 includescarbon emissions from purchased electricity for onshore offices and the use of shore power by vessels; Scope 3 only accounts for carbon emissionsfrom employee business travel.

Strengthening Energy Management

In line with the MEPC.1/Circ.683 Guidelines for the Ship Energy Efficiency Management Plan (SEEMP), the Company hasdeveloped its fleet-wideShip Energy Efficiency Management Plan(SEEMP). An energy efficiency operational indicator(EEOI) is applied to all vessels as an assessment metric to monitor fuel efficiency, evaluate the impact of voyage planningand new technologies on fuel usage, and continuously optimize vessel performance to improve fuel efficiency. At the sametime, the Company actively takes measures to ensure that all vessels operating in overseas regions comply with the currentEnergy Efficiency Existing Ship Index (EEXI) requirements. Some of the Company’s vessels in overseas waters, as well asvessels operating in both domestic and international routes, have completed technical assessments for EEXI and passed thecorresponding classification society audits.

Key Metrics2024Unit

tcetontcekWhTimeskWhtcetce/RMB 1 million (revenue)

ShipShip

237,335.44165,920.97

129.86

111,696.32

944,897.83237,465.30

64.90

Total Direct Energy ConsumptionTotal Fuel Oil ConsumptionTotal Indirect Energy ConsumptionOffice Electricity ConsumptionNumber of Shore Power UsesTotal Shore Power ConsumptionTotal Energy ConsumptionEnergy Consumption IntensityNumber of Vessels Completed with EPL RetrofitNumber of Vessels Passed EEXI Classification Audit

2025

347,422.38218,290.14

135.39

119,412.13

982,195.20347,557.77

78.23

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CaseSpecialized Training on Green Energy Conservation and Environmental ProtectionDuring the Reporting Period, the Company organized specializedtraining sessions focusing on the application of the latest energy-saving technologies and practical experiences on current vessels. Thesessions explored topics such as energy-saving retrofits, efficiencyimprovement, and optimization of energy management. By sharingpractical cases of energy-saving and consumption reduction, thetraining provided employees with reference ideas and methods,further strengthening their confidence in promoting energy-saving andemission-reduction initiatives.

Vessel Operations ManagementEquipment MaintenanceThe Company standardizes the daily maintenance, inspection, and record-keeping of vessel equipment to ensure optimal performance,promptly identify potential energy efficiency risks, and avoid unnecessary energy consumption. For example, unused compartments’ airconditioning is stopped by closing dampers, and internal air recirculation is used to reduce heat loss based on environmental conditions.Waste Heat RecoveryThe Company uses exhaust gas boilers as a heat recovery system, converting waste heat from exhaust gases into steam to support vesselheating and fuel heating, effectively reducing fuel consumption.Voyage Optimization

The Company continuously implements refined vessel operational management, and while ensuring safe navigation, it comprehensivelyconsiders total voyage distance, fuel consumption, weather conditions, and other factors to select the optimal routes and speeds, therebyreducing energy consumption.

Energy Conservation and Consumption Reduction Promotion

Energy Conservation Exploration

The Company actively researches axle generators and variable-frequency control systems as potential upgrades for energy-saving andemission-reduction equipment.Energy Conservation PromotionThe Company periodically organizes theme-based training and educational activities related to energy conservation to enhance employees’awareness of energy-saving and emission-reduction practices.

During the Reporting Period, to ensure the continued stable and robust operation of the Company’s fleet and uphold the conceptof sustainable development, the Company conducted intermediate and special inspections on

vessels. It also continuouslycarried out drydocking maintenance, energy-saving and emission-reduction measures, and low-carbon, environmentally friendlyequipment upgrades and optimizations for both existing and newly acquired vessels.

CaseDeepening Strategic Cooperation to Build Green ShippingOn June 13, 2025, Highton Development signed a strategic cooperationagreement with COSCO Shipping Heavy Industry, with both partiesfocusing on deepening collaboration in the fields of “green and low-carbon” and “digital intelligence”. Upholding its mission of “Aiming at theocean, making China’s shipping business better and stronger”, HightonDevelopment is highly aligned with COSCO Shipping Heavy Industryacross the industry chain. Moving forward, the two parties will deepencooperation in key areas such as green low-carbon initiatives anddigitalization, jointly supporting the national strategy of building a strongmaritime nation.

Partnering with COSCO Shipping Heavy Industry, Promoting High-Quality Green Shipping

On June 19, 2025, Highton Development held in-depth discussionswith the Maritime and Port Authority of Singapore (MPA) on vesseldecarbonization strategies. Key topics included ship decarbonizationstrategies, the Green Ship Program, and Singapore’s ship registrationincentives. MPA representatives expressed their willingness to exploresustainable shipping solutions together with Highton Development,supporting the Company in achieving its low-carbon objectives. Throughthis collaboration, Highton Development will leverage Singapore’sadvantage as an international shipping hub to further optimize fleetoperational efficiency, strengthen the cultivation of green shipping talent,and jointly promote sustainable development in the industry.

Engaging with the Maritime and Port Authority of Singapore to Optimize Green Fleet Operations

Highton Development reached a strategic cooperation

agreement with COSCO Shipping Heavy Industry

The Maritime and Port Authority of Singapore visited

Highton Development

Promoting Vessel Energy Saving and Carbon Reduction

The Company continuously advances energy-saving and carbon reduction initiatives through multiple measures, includingenergy-efficient technology retrofits and refined vessel operational management. In terms of incentive mechanisms, the companyhas established a fuel-saving reward system for the foreign-shipping fleet, providing fuel-saving bonuses to vessels that meet therequirements, thereby motivating the fleet to implement energy-saving measures.Vessel Energy-Saving Retrofits

Shore Power ConversionThe Company promotes the installation of shore power facilities on operating vessels and has established management, usage, maintenance,and operational procedures for these facilities, effectively reducing air pollutant emissions from ships while in port. As of the end of theReporting Period, the Company’s vessels had used shore power a total of 179 times, with a total consumption of 982,195.2 kWh.

Equipment UpgradesBy equipping operating vessels with energy-saving devices such as streamlined housings and hub vortex absorbed fins (HVAFs), theCompany has achieved approximately a 5% reduction in daily fuel consumption during navigation. During berthing periods, the installation offuel and cylinder liner electric heaters to replace traditional fuel-fired boilers has reduced daily fuel consumption from 2.5 tons to 2.0 tons,a decrease of 20%. As of end of the Reporting Period, a total of 30 vessels in the Company’s fleet had been retrofitted with streamlinedhousings and HVAFs.Coating Optimization

The Company actively applies organic silicon coatings on vessel hulls to reduce surface friction resistance, thereby lowering fuelconsumption and associated emissions and cutting related carbon emissions by approximately 8%. As of end of the Reporting Period, theCompany completed the application of high-performance organic silicon hull coatings on 34 vessels.

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Strengthening EnvironmentalManagementThe Company strictly complies with theMarine Environment Protection Law of the People’s Republic of China, theInternationalConvention for the Prevention of Pollution from Ships(MARPOL), theInternational Safety Management (ISM) Code, and otherrelevant domestic and international laws, regulations, and conventions. Guided by a strong sense of social responsibility andmission, the Company steadfastly implements the concept of environmental compliance management, continuously improvesits environmental management system, and carries out various environmental protection initiatives. This ensures that theCompany’s business operations consistently align with global environmental standards, contributing to the green and sustainabledevelopment of the international shipping industry.

Governance

The Company has established relevant control procedures such as theProcedures for Preventing Environmental Pollutionand Procedures for Preventing Oil Pollution, forming a comprehensive environmental protection management system andframework. Adhering to the safety and environmental protection policy of “Safety First, Health and Environmental Protection,People-Oriented, and Continuous Improvement”, the Company aims to prevent harm to the environment, particularly the marineenvironment, and ensure that its operations comply with relevant international conventions and laws and regulations. In 2025,the Company did not incur any major administrative penalties from ecological or environmental authorities due to environmentalincidents.The Board of Directors, as the highest leadership and decision-making body for the Company’s environmental management,assumes ultimate responsibility for the management of environmental protection policies, strategies, targets, and major risks,and supervises environmental performance. The General Manager serves as the primary responsible person for environmentalmanagement (including pollutants and waste management), tasked with formulating the Company’s environmental protectionpolicies, designating personnel to monitor vessel safe operation and pollution prevention, and coordinating internal and externalactivities. The Marine Department, Engine Department, and Systems Office collaboratively manage vessel safety and pollutionprevention, investigate and analyze pollution incidents, and perform related tasks. Relevant supervisors periodically overseeand inspect these activities to ensure that operational waste, pollutants, and other substances that may harm the environmentgenerated during vessel operations are handled strictly in accordance with applicable regulations.

Management System

In accordance with theGuidelines for Education, Drills, and Exercisesmanagement procedure, the Company defines educationand drill requirements for all vessels under its management and develops an annual training plan for each vessel. TheCompany regularly conducts environmental protection training and drills for crew members, covering topics such as ship wastemanagement and domestic sewage treatment, standardizing internal personnel’s pollution handling operations. Additionally,shore-based employees are periodically organized to participate in environmental volunteer activities and receive training onenvironmental laws and regulations, effectively enhancing employees’ environmental awareness.

Training and Education

CaseEnvironmental Awareness Activities and TrainingIn 2025, the Company actively carried out themed public welfare environmental protection activities such as “ProtectRiverbanks, Share Clear Waters and Blue Skies” and “Low-Carbon and Green Travel”. By organizing employees toparticipate in riverside litter cleanup, environmental knowledge training, and cycling practices, the company effectivelyenhanced employees’ awareness of green living, environmental protection, and low-carbon lifestyles.

All company vessels are equipped with environmental protection facilities in accordance with relevant international conventionsor domestic ship inspection regulations, and undergo regular maintenance. The vessels have obtained the correspondingcertifications, including Cargo Ship Safety Certificates, Air Pollution Prevention Certificates, Sewage Pollution PreventionCertificates, Oil Pollution Prevention Certificates, Anti-Fouling System Certificates, and Domestic Navigation Vessel Safety andEnvironmental Protection Certificates, among other relevant qualifications.

Qualification Certification

Environmental Public Welfare Activities

Environmental Training

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Type of

Risk/Opportunity

Description of Risk/Opportunity

Explanationof FinancialImpact

ImpactDuration

Impacton ValueChain

Response Measures

Policy Risks

Pollutants such as exhaust gases,wastewater, and domestic wastegenerated during vessel operationsmay impact the environment. Ifenvironmental regulations becomestricter in the future, the Companymay need to invest more inenvironmental protection, potentiallyincreasing operational costs.

Costincrease

Short- tomedium-term

Operations

Monitor domestic and internationalshipping-related environmental policies andreasonably allocate and adjust budgets toensure timely updates and upgrades ofenvironmental protection facilities;Strictly comply with environmental protectionand pollution prevention standards to ensurethe compliant discharge and proper disposalof pollutants and waste.

Legal Risks

If the Company fails to dischargepollutants in compliance withrelevant laws and regulations, itmay face fines, lawsuits, or otherpenalties from authorities inoperational regions.

Costincrease

Short-term

Operations

Conduct in-depth research on environmentalregulatory requirements; strengthen pollutantemission management to ensure complianthandling;Implement operational standards andtraining for relevant personnel to preventenvironmental pollution caused by improperoperations.

Strategy

Impact, Risk, and Opportunity ManagementThe Company has established theRisk Identification, Assessment, and Control Proceduresto standardize the processes forhazard identification, risk identification, assessment, and control. The Marine Department is responsible for regularly reviewingthe adequacy, appropriateness, and effectiveness of risk factor identification and control measures, and updating theRiskIdentification and Assessment Recordsbased on the review results. In addition, the Company has developed aRisk SourceClassification and Control Listto implement tiered management and control of risk sources that may cause environmentalpollution.

Environmental Risk Identification and Monitoring

Highton Development consistently upholds a strong sense of environmental responsibility and has established a systematicenvironmental emergency management framework. The Company has formulated and implemented a series of emergencyresponse procedures, including theEmergency Incident Handling Procedure, Emergency Preparedness, andGuidelines forEmergency Response to Accidental Oil Spillage, comprehensively covering the prevention, control, and response processesfor environmental and safety emergencies such as oil spillage. Through systematic identification and assessment of potentialvessel emergencies, the Company clearly defines the responsibilities of personnel at all levels and the deployment of emergencyresources, ensuring rapid response and effective incident control, and minimizing the scope of incidents and their environmentalimpacts.At the same time, to ensure effective response to sudden environmental pollution and damage incidents, the Company hasprepared guiding documents such as theOnboard Emergency Response Guide and Training Manual. In accordance with theannual ship-shore emergency training and drill plan, the Company regularly organizes a range of emergency drills, includingabandon ship, fire-fighting, oil spillage, collision, and grounding scenarios. These efforts continuously enhance the emergencycoordination and response capabilities of both ship and shore personnel, effectively safeguarding navigational safety and marineenvironmental protection.

Environmental Emergency Management

CaseMarine Oil Spillage Emergency Drill

During the Reporting Period, in order to effectively fulfill the requirements of the SOLAS/SOPEP international conventions andenhance vessels’ emergency response and coordinated handling capabilities for marine pollution incidents, the Company conducted acomprehensive emergency drill simulating an oil spillage accident during bunkering operations. The drill simulated the discovery of oilpollution on the water surface during refueling. In accordance with established procedures, all crew members activated the emergencyresponse plan, promptly carrying out key actions such as isolating the source of leakage, issuing alarms, assembling response teams,containing and recovering spilled oil, followed by equipment inspection and post-drill review. The entire process featured rapid response,standardized operations, and orderly coordination, successfully verifying the effectiveness of the vessel’s anti-pollution emergency planand strengthening crew members’ environmental awareness and practical response capabilities.

Metrics and TargetsMarine transportation is the primary operational segment in which the Company’s production and business activities involveenvironmental pollution. During vessel operations, pollutants may be generated, including exhaust emissions (mainly carbondioxide, nitrogen oxides and sulfur oxides), oil pollution/oily wastewater, domestic sewage, and ship-generated waste. Duringthe Reporting Period, the Company adopted appropriate treatment measures for all of the above major pollutants to ensurethat all emission metrics complied with relevant environmental protection standards. In 2025, the Company’s investment inenvironmental protection amounted to RMB

4,137.41

(in ten thousand yuan).Key Metrics2024Unit

tont/RMB 1 million (revenue)

tont/RMB 1 million (revenue)

12,390.90

3.39

1,410.83

0.39

Nitrogen Oxides (NOX) EmissionsNitrogen Oxides (NOX) Emission IntensitySulfur Oxides (SOX) EmissionsSulfur Oxides (SOX) Emission Intensity

2025

17,952.48

4.04

2,034.95

0.46

Major Pollutant Emissions

Pollutant Discharge ManagementThe Company has established stringent emissions management systems and procedures, including theProcedures for PreventingEnvironmental Pollution, which clearly define the specific requirements and standards applicable to vessels under the Company’smanagement in respect of environmental protection and pollution prevention, thereby ensuring the compliant discharge andproper treatment of pollutants.The Company has prepared theGuidelines for the Prevention of Air Pollutionin accordance with international conventionsand relevant laws and regulations, specifying the basic requirements for preventing air pollution from vessels as well as theexhaust gas management system and operational procedures. The Engine Department is responsible for overseeing the fleet’sWaste Gas Management

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Environmental, Social and Governance Report 2025full compliance with these requirements. The Master ensures the completeness and validity of theInternational Air PollutionPrevention Certificateand supervises the Chief Engineer and Chief Officer in implementing the relevant regulations. The ChiefEngineer and Chief Officer are responsible for the practical execution of air pollution prevention measures.Aiming to prevent air pollution and reduce emissions of sulfur oxides, nitrogen oxides, and other exhaust gases, the Companystrictly manages fuel quality, anti-pollution equipment, and crew operations. At the same time, it actively explores advancedexhaust gas treatment methods and promotes the installation and retrofitting of desulfurization systems to further reduceemissions.

Fuel Oil ManagementThe Company strictly implements regional limits on the sulfur content of marine fuels in different parts of the world and has establishedstandardized fuel changeover procedures to ensure that vessels use low-sulfur fuel upon entering emission control areas. Relevant logrecords are maintained to meet the requirements of inspections by port state control (PSC) and other supervisory authorities. In addition,equipment such as desulfurizing tower is used to further reduce SOX emissions.Equipment Management

The Company conducts inspections and maintenance of shipboard air pollution prevention equipment. Such equipment has been surveyedin accordance with the requirements of the applicable international conventions or domestic ship inspection rules and has obtained therelevant air pollution prevention certificates. The use of ozone-depleting substances, or equipment containing such substances, is restricted;any such equipment, once removed, is sent to appropriate recycling facilities.Operational Management of Personnel

The Company standardizes the operating practices of all engine room personnel, including requirements for effective separation andpurification of fuel oil, as well as cleaning of the main engine and exhaust gas boiler air intake ducts, in order to control the level of exhaustemissions from machinery.

The Company has formulated control procedures such as theProcedures for Preventing Oil Pollutionto standardize the handlingand treatment of major types of shipboard wastewater, including oily wastewater and domestic sewage, thereby preventing oil,harmful liquids and other substances from polluting the marine environment.Ship Sewage Management

Oily Wastewater

The Company exercises strict control over the discharge of oily wastewater by implementing shore-based monitoring and sealingmanagement measures. The entire process—from generation, collection, storage to treatment of oily wastewater—is subject to standardizedmonitoring and control to ensure that all relevant parameters meet the discharge standards applicable at the place of operation.Alternatively, oily wastewater is collected using onboard collection systems and discharged to reception facilities, or handed over to qualifiedthird-party service providers for treatment when vessels are berthed.Domestic SewageThe Company conducts regular inspections and maintenance of shipboard domestic sewage treatment systems on each voyage. Domesticsewage is treated by these systems and, provided that relevant discharge standards are met, is discharged during navigation in waterspermitted under applicable laws and regulations. Alternatively, it is collected using onboard collection systems and discharged to receptionfacilities, or handed over to qualified third-party service providers for treatment when vessels are berthed.

Ballast Water

The Company has establishedBallast Water Managementprocedures. In accordance with the discharge requirements set out in theInternational Convention for the Control and Management of Ships’ Ballast Water and Sediments(BWM Convention), ballast water treatmentsystems have been installed on vessels operating on international routes. The Company strictly follows ballast water treatment operatingprocedures to prevent environmental pollution caused by improper ballast water management.

Shipboard Waste Disposal Measures

Compliant Disposal

The Company has equipped its vessels with appropriate waste disposal facilities, such as incinerators, food waste disposers, and wasteshredders, to handle different types of waste. Waste is treated through incineration, crushing, grinding, or compact storage, with detailedrecords maintained including date and time information. During the storage period, vessels are regularly cleaned and disinfected, fire-fighting equipment is provided, and management and inspections are strengthened. After berthing, ship-generated waste is fully sealed,transferred, and received by qualified port reception facilities for proper disposal.Daily ManagementFor onboard personnel, the Company regularly conducts training on the shipboardGarbage Management Planand the use of onboardpollution prevention equipment. By implementing the procedures of the garbage management plan and properly utilizing onboard wastetreatment facilities, the environmental impact of ship-generated waste is minimized. In addition, the Company conducts multiple shipwideself-inspections on pollution prevention, covering areas such as sulfur oxide emissions, use of electrical equipment, fuel and domesticwaste, general garbage, and hazardous materials management. These inspections ensure that no pollution incidents or non-compliant wastehandling occur.

The Company has established control procedures such asMaintenance and Monitoring of Asbestos-Containing Materials andOther Hazardous Substances on Board, which include a detailed Inventory of Hazardous Materials (IHM) for its vessels. Drawingon extensive industry experience, the Company identifies all hazardous and potentially hazardous materials on board, includingasbestos. Through measures such as awareness, prohibition, control, and training, the Company ensures the proper andcompliant handling of various shipboard hazardous materials, effectively minimizing their adverse impacts on the environment,health, and safety. During the Reporting Period, all hazardous waste generated onboard was entrusted to third parties fortransfer and disposal.

Hazardous Materials Management

Management of WastesIn accordance with theInternational Convention for the Prevention of Pollution from Ships(MARPOL) and relevant regulationsof the flag state, the Company has developed and implemented systems such as theGarbage Management Planto standardizeall aspects of waste classification, storage, and disposal. A comprehensive management system has been established, with theMaritime Department responsible for supervising compliance with waste management requirements. The Master, Chief Officer,Chief Engineer, and other personnel collaboratively manage onboard waste to prevent pollution incidents and strive to minimizewaste generation.To achieve standardized management of vessel waste and protect the marine environment, the Company has established thefollowing waste management objectives: By systematically standardizing the classification, storage, and disposal processes fordomestic sewage and various types of waste, the Company ensures that all waste is properly handled, resolutely preventingpollution of the marine environment. To accomplish these objectives, the Company has developed a comprehensive wastemanagement system and procedures.

Key Metrics2025Unit

m

m

m

m

423.44

2,031.611,392.461,044.16

Hazardous Waste Generated

Non-Hazardous Waste Generated

Total Waste Discharged into SeaTotal Waste Recycled Onshore

Waste Discharge Overview

Note:

1. Non-hazardous waste primarily includes food waste, domestic waste (excluding oily rags), edible oil, operational waste, animal carcasses, fishing gear, and cargo residues

that are harmless to the marine environment, all generated by the Company’s operating vessels.

2. Hazardous waste primarily includes plastics, domestic waste (including oily rags), incinerator ash, electronic waste, expired medicines, and cargo residues that are harmful to

the marine environment, all generated by the Company’s operating vessels.

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Optimizing Resource Utilization

To actively implement the concept of sustainable development and reduce reliance on and consumption of external freshwaterresources, all vessels operated by the Company are equipped with seawater desalination systems, which convert seawater intopotable water meeting drinking standards, effectively supplementing the onboard domestic water supply.While focusing on investments in hardware facilities, the Company also places great emphasis on cultivating a water-savingculture among all employees. Staff are guided to develop good water conservation habits and are encouraged to activelyparticipate in optimizing the use of water resources on board, ensuring that every employee becomes a proactive practitioner ofwater conservation.

Water Resource Management

Metrics2024Unit2025

Water Consumption

The Company has established systems such as theShip Material and Spare Parts Management Systemto comprehensivelystandardize the management processes for the application, storage, use, and recycling of materials. This ensures that vesselsmaintain an adequate quantity and quality of materials, spare parts, and documentation, providing a solid foundation for thenormal operation of machinery, electrical, power, and navigation/communication equipment. Such management safeguardsthe continuity and stability of vessel operations, meeting operational and safety requirements through efficient resourcemanagement.

Materials Management

Appropriate labels indicatingmaterial information are created forvarious materials and spare parts,which are then properly stored inthe designated storage areas.Appropriate labels indicatingmaterial information are created forvarious materials and spare parts,which are then properly stored inthe designated storage areas.

Material Requestand Warehousing

Routine Maintenance

of Materials

Material Quality

Feedback

Management ofObsolete Materials

Vessels submit materialrequisition forms inaccordance with theapplication procedures,which, after review, proceedto procurement throughtendering.Upon delivery of supplies tothe vessel, relevant personnelcheck and verify the items andpromptly record their receiptand storage.

Any material qualityissues identified duringuse are reported, and,based on the actualsituation, the supplieris contacted for after-sales service or internalinspections are conductedto prevent similar issuesfrom recurring.

Spare parts andmaterials retiredduring vesseloperations aremanaged throughstandardized storageand recyclingprocedures,enhancing assetutilization andpreventing asset loss.

Biodiversity ConservationAmid growing global awareness of ecological protection, the Company recognizes the strategic significance of biodiversity forthe marine and broader global ecosystems. In response, it actively aligns with international, domestic, and industry initiativesand conventions on biodiversity conservation. The Company has established a sustainable development management frameworkcentered on the Board of Directors and the ESG Working Group, which oversees environmental management, includingbiodiversity protection. The Engine Department and Maritime Department jointly implement biodiversity protection measures.Additionally, the company has established compliant procedures such as theBallast Water Management Procedures, Guidelinesfor the Prevention of Environmental Pollution, andGuidelines for the Prevention of Oil Pollution. The Company actively engagesin biodiversity protection practices and implements relevant measures.The Company strategically examines the close relationship between biodiversity and its business operations, actively identifyingenvironmental factors and risks in shipping activities that may adversely affect marine biodiversity. Identified risks are assessed,and targeted mitigation measures are developed, including—but not limited to—ballast water management, enhanced oilspill prevention, and optimization of vessel coatings. These efforts aim to minimize the negative impact or disruption of dailyoperations on the marine ecosystem, effectively safeguarding the marine environment and demonstrating the Company’scommitment to environmental stewardship.Strict Ballast Water Management

The Company equips its vessels with comprehensive ballast water management systems and ensures their functional reliability through bothregular and ad hoc inspections and maintenance. To minimize the risk of biological invasions at the source, vessels routinely measure andinspect ballast water to ensure water quality meets environmental standards. Operations such as ballast water intake, discharge, transfer,and exchange are strictly regulated to ensure compliant handling during navigation, preventing the abnormal migration of marine organisms.In accordance with the requirements of the International Maritime Organization (IMO) Ballast Water Management Convention, the Companystrictly follows ballast water treatment operating procedures and has installed ballast water treatment systems on vessels operating oninternational routes to reduce the environmental impact of ballast water on the marine ecosystem. By the end of 2025, 53 vessels operatingin overseas waters and 3 vessels operating on both domestic and international routes had been equipped with ballast water treatmentsystems.Strengthening Oil Spillage Emergency Response Capability

The Company has established guidelines and procedures, such as theGuidelines for Emergency Response to Accidental Oil Spillage,continuously improving its oil spillage emergency response mechanisms and processes. Oil spillage recovery and treatment equipment isappropriately allocated, and emergency drills are actively conducted to ensure rapid response in the event of an oil spillage, effectivelycontrolling and minimizing the impact of oil pollution on the marine environment.Optimizing Ship Coatings

In accordance with relevant IMO regulations, the Company strictly prohibits the application, reapplication, installation, or use of harmfulantifouling systems on board and has obtained the necessary antifouling system certificates to prevent harmful substances from impactingthe marine environment. In addition, the Company promotes the use of ship hull paints that prevent marine biofouling and conductsunderwater inspections around the hull using cameras, with regular hull cleaning performed to prevent the abnormal migration of marineorganisms.Optimization of Routes

The Company actively adopts routes recommended by maritime authorities and optimizes route management to protect the marine ecosystem.By avoiding fishing zones and areas of biological habitat and reproduction, and taking into account the seasonal migration patterns of marineorganisms, the Company incorporates biodiversity risk assessments into route planning, effectively reducing the impact of shipping activities onthe ecosystem.

tontont/RMB 1 million (revenue)

31,336.491,155.24

8.56

Total Water ConsumptionOffice Water Consumption

Water Consumption Intensity

34,301.11

925.71

7.72

The scope of office water consumption statistics covers office premises where the company independently bears the water expenses and whereseparate metering conditions are available. For certain leased office locations, due to the specific property management arrangements, separatewater consumption data is currently unavailable.

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Digital Intelligence-Driven,Collaborative Value Creation

Highton Development leverages digital intelligence capabilities to continuously optimize customer service and supply chainmanagement. We focus on maintaining a safe and reliable operational environment and are committed to growing together withour partners, building a sustainable business ecosystem.

Digital Intelligence-Driven, Collaborative Value Creation

Comprehensive Digital Intelligence DevelopmentData Security and Privacy ProtectionHigh-Quality Customer ServiceResponsible Supply Chain

Digital Intelligence-Driven, Collaborative Value Creation

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Environmental, Social and Governance Report 2025

Comprehensive Digital Intelligence DevelopmentThe global shipping industry is entering a critical phase of informatization and digital transformation, with information and digital technologies becoming key drivers for high-quality development. Based on its strategic positioning and development needs, the Company actively exploresnew development paths centered on “digitalization + shipping”, continuously improving internal management systems and information governance frameworks. The Company is committed to achieving full digitalization and intelligence in both business operations and internal controlmanagement.

GovernanceThe Company deeply integrates digital development with its corporate strategy, strictly following the overarching principle of “unified planning, unified standards, distributed implementation, and gradual refinement” in the construction of information systems. Centered on the IT strategicobjective of leveraging technology to empower business, the Company focuses on supporting business growth, enhancing management efficiency, and deepening data analytics as key priorities. The Digital and Intelligent Management Center, as the leading department for digitaldevelopment, is responsible for overall planning, project initiation, standards formulation, resource coordination, and unified management. All business departments actively participate in system requirements analysis and process optimization. By promoting policy development and establishinga data analytics and performance indicator framework, the Company clarifies and strengthens each department’s responsibilities in digital transformation.

Type of Risk/Opportunity

Description of Risk/Opportunity

Explanationof FinancialImpact

ImpactDuration

Impacton ValueChain

Response MeasuresTechnologicalRisks

Digital transformation requires substantial investment in intelligent vessels and system development, and may facetechnical integration challenges such as accelerated external technology iteration cycles, compatibility between new andlegacy systems and inconsistent data standards.

Cost increase

Short- tomedium-term

Operations

Follow the principle of “unified planning, unified standards, phased implementation, and gradual refinement”. The Digitaland Intelligent Management Center leads unified management, develops theDigital Transformation Planning Program, andsets clear phased objectives to minimize technology iteration cycles and mitigate technical risks.OperationalOpportunities

By integrating operational data from domestic-shipping, foreign-shipping, finance, and external markets, and buildinganalytical models, the Company can optimize route planning, fuel procurement, and other operations, thereby improvingoperational efficiency.

Reduction incost

OperationsOperations

Deploy beacon systems to integrate ship-to-shore data, continuously develop and upgrade intelligent systems such asspare parts management, and introduce technologies including radio frequency identification device (RFID), robotic processautomation (RPA), and large language models to enhance management efficiency.TechnicalOpportunities

By building an enterprise data platform, operational data can be unified and standardized to create reusable data assets.On this basis, a data analytics platform and intelligent application scenarios can be established, enabling value conversionfrom data accumulation to operational insights.

Reduction incost

OperationsOperations

Deepen the integration of existing systems, with cross-departmental process collaboration at the core. Establish unifieddata standards and process protocols, and promote standardized application of information to support intelligent scenariodeployment.

Strategy

Impact, Risk, and Opportunity ManagementSince 2018, the Company has continuously invested in information system development, including the application, upgrading, and iterative enhancement of systems for financial management, onboard management, RFID on spare part management, operational system upgrades, system security, RPA,and digital dashboards.The Company has implemented key initiatives in intelligence and security to ensure data protection and refined management throughout the digital transformation process, providing a solid foundation for sustainable development. Building on the onboard management system, a system for RFID onspare part management has been introduced to streamline onboard spare parts handling, improve operational efficiency, and enable real-time monitoring and precise management of vessel spare parts inventory by both shipboard and shore-based teams, effectively reducing inventory levels andoptimizing capital utilization. The application of RPA automates numerous tedious and repetitive tasks, transforming work processes and allowing personnel to focus on critical tasks, thereby enhancing overall work efficiency.

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Metrics and Targets

As of the end of the Reporting Period, the Company had completed

digital development projects, with

digital projects still under construction.

Planned Construction SystemPlanned Objectives

Support scientific management and dynamic allocation of the crew pool;Establish a full-process business management loop for crew, providing systematic management from recruitment to payroll;Enable automated management of crew interviews, certificate expiration warnings, and other tasks.Crew Management SystemAchieved

Integrate with the business data lake to reduce partnership risks;Improve customer information data, establish customer service profiles, understand customer needs, and enhance customer satisfaction;Share customer resources across departments to provide data support for coordinated business operations.Customer Relations Management SystemAchieved

Optimize downstream multiple-quote management, bid evaluation, and supplier rating functions on the bidding platform;Enable mobile approval of bidding operations and SMS notifications.Bidding System UpgradeAchieved

Systematize the procurement and usage of office and administrative supplies;Provide comparative data analysis across different stages.Administrative Inventory SystemAchievedSystematize the Company’s insurance operations and establish end-to-end management from insurance contracts to premium payments.Insurance SystemAchievedDeploy RFID systems and complete system deployment on returning vessels;Enable automated onboard management within the vessel management system, including spare parts inventory, inbound, and outbound operations.Spare Parts Supermarket System DeploymentDeployed on 39 vessels

Deepen customer rating classification in operations through systematic rating categories.Customer System RatingAchievedOptimize the data dashboard, add business dashboards for the Foreign Trade and Shipping Center and the Human Resources and Administration Center, and transit from two-dimensional tables to visually rich, trend-oriented dashboards.Enhanced Dashboard SystemAchieved

Upgrade existing RPA tools to support automated external data collection;Introduce additional automated workflows to enable partial automation of manual tasks.RPA UpgradeAchieved

Completion Status in 2025

Through digital enablement, the Company provides strong support for its business strategy, driving continuous optimization and innovation of existing operations while exploring new business areas and market opportunities. In 2025, guided by the overall objectives of digital developmentand with data standardization and sharing at its core, the Company advanced the integration of business and finance, connecting the digital chain of vessels and crew through closed-loop business processes and traceability, thereby laying a solid foundation for refined operations.

Key Performance

2025 Digital Construction Goals (Partial)

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Data Security and PrivacyProtectionThe Company places great importance on data security and privacy protection. Safeguarding the security of shipboard networksand equipment is critical to the normal and efficient operation of shipping activities, helps ensure the smooth execution ofvoyage plans, and prevents the leakage of sensitive information. Strengthening security protection capabilities is central to theCompany’s ability to effectively respond to cyber threats and to build a robust security emergency response framework.

GovernanceThe Company strictly complies with laws and regulations such as theData Security Law of the People’s Republic of ChinaandthePersonal Information Protection Law of the People’s Republic of China, and has formulated internal policies including theHighton Development General Principles for Information Managementand theHighton Development Information System SecurityManagement Policy, thereby comprehensively strengthening the secure management and control of data assets. In terms ofdivision of responsibilities, the Company manages information security in a tiered structure. The Board of Directors overseesmajor data security management matters, while the General Manager is responsible for reviewing, evaluating, and deciding onsuch matters to ensure that information system developmentand security initiatives effectively support the Company’sstrategy. The Digital and Intelligent Management Center isresponsible for the construction, operation, maintenance, andsecurity protection of information systems, ensuring stableequipment operation, preventing data leakage and loss, andcontinuously advancing system and network optimization andupgrades. System application departments are responsiblefor closely aligning system planning with business objectives,ensuring that systems operate securely, reliably, and efficientlyin practice, and that various issues are responded to andresolved in a timely manner. During the Reporting Period, theCompany recorded no violations related to information securityor privacy protection, and no incidents involving the leakage ofcustomer privacy.During the Reporting Period, the Company conducted information security awareness training for the Digital and IntelligentManagement Center, enhancing employees’ awareness of information security, their ability to respond to information risks, andstrengthening the overall security defense. In addition, Company personnel attended professional information security trainingsessions organized by external service providers.

Network and Information Security Training

During the Reporting Period, the Company conducted

information security training sessions, with

participants in total. The total training duration was

hours, with an average of

hours per participant.

Type of Risk/Opportunity

Description

Explanationof FinancialImpact

ReportingPeriod

Impact onValue Chain

Response Measures

TechnologicalRisks

The Company’sinformation systemsinvolve sensitivedata such as vesseloperations, customercontracts, and financialinformation. Withoutstrict access control or inthe event of an externalattack, this could leadto data leakage ortampering.

Cost increase

Short- tomedium-term

OperationsDownstream

Strictly enforce the access approval proceduresoutlined in theInformation System ManagementPolicy, requiring dual approval from both thebusiness department head and the Digitaland Intelligent Management Centerfor accessallocation.Disable data export functions for all criticalinformation systems; implement watermarktracking for certain systems to enabletraceability of screenshots.Encrypt and securely process sensitive data andfinancial system code to prevent decryption orinterception during operation.Use SSL/TLS encryption for data access andtransmission.Control IDC access permissions through abastion host mechanism, and enhance databasemanagement with role-based access control tostrengthen oversight.

OperationalRisks

Some systems aredeployed in vendor datacenters, posing risksrelated to data migrationor service dependency,and potential loss ofdata control due tothird-party managementvulnerabilities.

Cost increase

Short- tomedium-term

OperationsDownstream

Following the priorities outlined in theDigitalTransformation Plan, core business systemssuch as the Foreign-Shipping ManagementSystem and Financial System are migrated fromvendor data centers to controllable public cloudenvironments, with additional security measuresincluding bastion hosts and firewalls.Incremental daily backups of cloud-basedsystems are stored locally at Highton (e.g., onexternal hard drives), and full daily backups arevalidated for usability.Periodic information security audits areconducted to ensure compliance.

TechnicalOpportunities

By integrating domestic-shipping, foreign-shipping, financial, andother data to buildanalytical models, theCompany can optimizeroute planning, fuelprocurement, and otheroperations, therebyimproving operationalefficiency.

Reduction incost

Long-term

Operations

Establish a company-level data warehouse thatintegrates domestic-shipping data (e.g., voyagecontracts, port charges), foreign-shipping data(e.g., charter settlements, fuel procurement),and financial data (e.g., cost accounting,cash flow). Eliminate information silos andincorporate external third-party data to form acomprehensive corporate data asset package,enabling operational optimization in areas suchas weather forecasting and route planning.

Strategy

Key Performance

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Impact, Risk, and Opportunity Management

In terms of cybersecurity and management, the Company has developed a series of measures based on the implementation standardsoutlined in the Guidelines on Maritime Cyber Risk Assessment and Management System and tailored to its own circumstances. Thesemeasures are designed to protect ship and shore computer systems from cybersecurity threats, ensure their safe operation, andspecify equipment recovery procedures in the event of an incident.

The Company has developed detailed information security emergency response plans, specifying the response procedures,division of responsibilities, and concrete operational steps. In the event of a cybersecurity incident, immediate control measuresmust be taken, and the incident must be accurately reported and properly handled. Units that conceal, delay, or inadequatelyrespond to incidents are subject to notification and accountability.Additionally, the Company regularly conducts information security emergency drills and training to enhance employees’emergency response capabilities, practical skills, and awareness of information security, thereby strengthening overall preventionand protection measures.

Information Security Emergency Management

CaseCybersecurity Emergency DrillDuring the Reporting Period, in response to the increasingly complexcyber environment and to enhance the Company’s ability to handleunexpected cybersecurity incidents, Highton Development organized acybersecurity and information security emergency drill. The drill aimedto test the effectiveness of the Company’s cybersecurity emergencyresponse plan, strengthen coordination among systems, improve theemergency handling capabilities of cybersecurity personnel, and ensurethat in the event of a real incident, the Company can respond quicklyand effectively, safeguarding business continuity and data security.

Network and Information Security Emergency Drills

Risk IdentificationRisk AssessmentRisk MonitoringRisk Response

Potential threats and system vulnerabilitiesare proactively identified through log audits,vulnerability scanning, and security baselineverification.

Leveraging security platforms such as bastionhosts, application firewalls, and local firewalls, theCompany continuously protects network trafficand endpoint devices, monitors user activities,manages passwords and access permissions, andimplements tiered management to prevent dataleakage and system compromise.

Risks are evaluated and prioritized based onthe likelihood of occurrence and the potentialimpact on business continuity and data security,determining the order in which they should beaddressed.A combination of measures—including dataencryption, access control, intrusion prevention,endpoint security management, and disasterrecovery backups—is employed to effectivelycontrol and mitigate identified risks.

Risk Management Process

During the Reporting Period, the Company conducted

external information security compliance review (IT audit), identifying

areas for improvement, including enhancements to internal policies and procedures. The Company has completed therelevant corrective actions and optimizations, ensuring the compliance and effectiveness of information security management.

Information Security Review

MetricsGoals

0 caseMajor Information Security Violations

2025

Metrics and Targets

0 case

Information Security Management StrategiesThe Company requires suppliers to comply with the relevant provisions of theInformation System Management Policy. Externaldevelopers must adhere to the Company’s requirements for data encryption, access control, and other security measures. Beforecommencing work on-site, suppliers are required to sign theInformation Security Responsibility Agreement, committing to protectCompany data and prohibiting the disclosure of sensitive information, including customer information and business data. Uponproject completion, supplier project access rights are revoked, and all project-related data is properly cleared.

In accordance with the relevant provisions of theDetailed Rules for Information System Management, employees who undergojob transfers must obtain corresponding system permissions via the System Permission Application Form approved by theirdepartment head. When an employee submits a Resignation Application Form and receives leadership approval, the systemautomatically revokes all of the employee’s access permissions. In daily management, strict controls are applied to data exportand other processes that may pose a risk of data leakage.

Information Security Management for Partners

Equipment and System Security

Data and Network SecurityFull Life Cycle Control of Equipment

The Digital and Intelligent Management Center sets procurement standards and coordinates purchases; installation and maintenancepersonnel supervise the process throughout; procedures and data are cleared prior to decommissioning.System Access and ProtectionHardware is managed with tiered controls and clearly assigned responsibilities; systems are authorized based on role-based access, users setcomplex passwords and update them regularly; critical system codes are encrypted; branch offices access systems via VPN, with hardware/software firewalls in place and separate subnet segmentation implemented.

Employee Change Security Management

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Network Security ProtectionDaily Management RulesServers are accessed via “intranet + VPN”; shipboard computers are prohibited from installing or uninstalling unauthorized software.Security Operating Measures

Network connections are regularly inspected; network devices are bound to specific zones and managed by segment; the mail server filterssuspicious emails, and critical emails require multi-channel verification; USB and other external devices are locked on shipboard computers,and wireless device access to office computers is disabled; antivirus software and virus definitions are updated regularly; any shipboardnetwork security issues are reported immediately.

Daily Strengthening MeasuresOffice Network OptimizationAdditional firewalls installed and Layer-3 switches upgraded; office networks are segmented by functional departments, and access devicesare managed by zone.Server ProtectionApplication firewalls and bastion hosts are deployed to strengthen access control and enable operation traceability.Shipboard Terminal ManagementResponsibilities for shipboard computer management are clearly defined; regular cybersecurity training is conducted, monthly riskassessments are performed, and emergency response plans are developed.

The Company attaches great importance to the protection of customer privacy. Through a dual mechanism combininginstitutional policies and system controls, the Company implements strict confidentiality management of customer information andcontinuously safeguards the security of customer data.

Customer Privacy Protection

At the institutional level, the Company has established clear management regulations covering internal employees, vendor personnel, andin-house development teams. All personnel are required to comply with unified policies, including signing confidentiality agreements andfollowing strict access approval procedures, to ensure standardized management throughout the entire process from access to use ofcustomer data.At the system level, the Company has embedded management closed loops into system design and application, enabling full-processcontrol over permission application, approval, modification, and revocation. Through functions such as data compliance verification intesting environments, monitoring of on-the-job access rights, and automatic revocation of permissions upon employee departure, theCompany ensures that customer information remains secure and controllable across all environments.

High-Quality Customer Service

GovernanceThe Company adheres to the service philosophy of “Creating value for customers and realizing dreams for strivers”, focusingon domestic coastal and international ocean-going dry bulk cargo transportation. To enhance the standardization of customermanagement, the Company has established a series of policies, including theDomestic Trade and Shipping Center ManagementSystemand Foreign-Shipping Business Processes, which clearly define the specific content and procedures for customermanagement. The Board of Directors is responsible for approving key strategies and policies related to customer service andoversees decision-making on major matters such as service quality management. The Domestic Trade and Shipping Center,Foreign Trade and Shipping Center, and Marketing Center are respectively responsible for formulating and implementing theCompany’s medium- and long-term maritime market strategies for domestic-shipping and foreign-shipping business, ensuringcontinuity and stability of business operations. The Ship Management Center, Finance Department, Foreign Trade and ShippingCenter, and Domestic Trade and Shipping Center coordinate across departments to meet differentiated customer needs and drivethe Company’s sustainable, high-quality development.

Type ofRisk/Opportunity

Description

Explanationof FinancialImpact

ReportingPeriod

Impact onValue Chain

Response Measures

OperationalRisks

If the Company failsto ensure timelytransportation orexperiences serviceissues such as cargodamage or loss, it mayneed to compensatecustomers and couldeven face customerattrition.

CostincreaseIncomedecrease

Short-term

OperationsDownstream

In line with the characteristics of the dry bulkshipping industry, establish correspondingmanagement systems and procedures, build a morecomprehensive shipping network, and upgradevessel management and fleet deployment capacityto continuously improve operational efficiency.Enhance personnel quality through customerservice, business operations, and etiquette training.

ReputationRisks

If the Company fails torespond to and addresscustomer feedback ina timely manner, anddoes not understand ormeet customer needs,customer satisfactionmay decline, hinderingthe establishment oflong-term partnerships.

Incomedecrease

Long-term

OperationsDownstream

Business departments monitor the service processand respond promptly to customer feedback toensure service meets customer needs. Customerscan provide feedback and suggestions throughmultiple channels, and these inputs serve as thecore basis for service optimization and upgrades,continuously driving service improvement andearning recognition and trust from key clients.

Operationalopportunities

By providing moreefficient and high-qualityservices, the Companycan attract morecustomers, generateadditional businessopportunities, and helpexpand market share.

Incomeincrease

Long-term

OperationsDownstream

Leverage intelligent and digital transformationinitiatives to continuously optimize customer servicemanagement, enhance operational efficiency, anddrive ongoing business innovation, delivering high-quality services that align with customer needs.

Strategy

The above mechanisms apply to all internal personnel and external partners. Any violations will be dealt with seriously inaccordance with their severity, and any suspected criminal acts will be referred to judicial authorities in accordance with the law.

Data SecurityData Protection and BackupConfidential information is encrypted; system data is regularly backed up, including server system image backups.Data Transfer StandardsData exchanged between systems is transmitted via standard APIs to prevent tampering; shared files are organized by department withcontrolled access, and cross-department access requires approval.

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Impact, Risk, and Opportunity ManagementThe Company continuously optimizes shipping business processes, covering key areas such as marketing, contract drafting, routeoperations, and cargo loading/unloading handovers, enabling systematic tracking and control of the entire transportation process. Tostrengthen business risk prevention, the Company has established a customer credit evaluation system, comprehensively assessingclients across multiple dimensions, including business scale, performance capability, cooperation level, emergency response, andproblem-solving ability, and implements tiered customer management based on these evaluations. By promoting standardizedoperations and refined risk management, the Company has effectively improved vessel turnover efficiency, strengthened marketcompetitiveness, and achieved steady growth in economic performance, providing a solid foundation for the long-term, stabledevelopment of its shipping business.

Metrics and Targets

The Company’s business departments monitor service processes and gather customer feedback to ensure that services meetclient requirements. Customer satisfaction surveys are conducted regularly, proactively identifying and addressing issues, with theaim of continuously fulfilling customer needs.The Company sets customer satisfaction as a key performance objective, ensuring prompt and effective responses to customerrequests to meet their differentiated needs. Customer complaints are used as an important metric for evaluating customer serviceperformance.

During the Reporting Period, the Company issued a total of

customer satisfactionsurveys, achieving a customer satisfaction rate of

97.85

%.

Customer Service ManagementThe Company has established a comprehensive customer complaint handling mechanism, through which customers may submitcomplaints via WeChat, email, telephone, written correspondence, and other channels. In the event of an emergency involvinga vessel, the relevant departments are required to respond within two hours, promptly report and communicate information,and, within one day after the incident occurs, organize and coordinate internal and cross-departmental resources to develop anemergency response plan.

Handling of Customer Complaints

During the Reporting Period, the customer complaint resolution rate reached

%, and the timelyhandling rate of customer complaints was

%.

Complaint Acceptance

Feedback andConfirmationConclusion

Staff members record the customer’s basicinformation, details of the complaint, and theunderlying reasons in a comprehensive manner,and then forward the complaint information to theresponsible department.Based on the investigation results, a solution isformulated, specifying the measures to be taken,responsible persons, timelines, and expectedoutcomes, and submitted for approval by seniormanagement.Upon completion, the results are communicatedto the customer and customer satisfaction isconfirmed. If the customer is not satisfied, theissue is reprocessed.

The responsible department assigns designatedpersonnel to contact the customer, collect relevantinformation, review internal company records, andobjectively analyze the root causes of the issue.Upon approval, the solution is implemented, withdesignated personnel assigned to track progressand make timely adjustments where necessary.Issues are regularly summarized and analyzed,and improvement and preventive measures aredeveloped accordingly.

Customer Complaint Handling Process

We continuously optimize customer service management, driving improvements in operational efficiency and service quality. TheCompany’s business departments monitor service processes and conduct targeted follow-up and analysis of customer feedback toensure customer issues are resolved and their needs are consistently met.Enhancement of Customer Satisfaction

Measures to EnhanceCustomer Satisfaction

The Company strengthens the professional capabilities ofits shore-based management teams to build a solid talentfoundation; advances standardization to improve full life-cycle management of vessel supplies and spare parts; andreinforces system implementation, focusing on proactiverisk prevention, hazard identification and mitigation, and thedevelopment of emergency response mechanisms. Throughthese efforts, the Company establishes a closed-loop safetymanagement system, comprehensively enhancing servicecapabilities and the level of safe and reliable operations.

To deepen strategic partnershipswith key clients, we have establisheda key account service mechanism.Through regular customer and marketvisits, the Company strengthenscommunication with clients, gainsdeeper insights into their needs,enhances the depth of cooperation,increases client loyalty, and expandsits base of key accounts.

Key Performance

Key Performance

Implementation of theSolution

Investigation andVerificationDevelopment of aSolution

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Responsible Supply Chain

Supplier Management

The Company has formulated theSupplier Management Measures, with the Procurement Department taking the lead in managingsuppliers. These measures standardize the entire supplier management process, foster a fair, just, and transparent procurementenvironment, and ensure the efficient and stable operation of the supply chain.

The Company has established anannual supplier evaluation mechanismand sets different evaluation criteria fordifferent suppliers, primarily assessingindicators such as quality, deliveryperformance, and service capability.

The Company classifies suppliers into four grades—A, B, C, and D—based on their evaluation scores. Suppliers scoring below the passingthreshold will undergo a re-evaluation process. Depending on theseverity of their non-compliance, they may be downgraded to abackup status or directly blacklisted, with cooperation terminated.

The Company identifies and screenspotential suppliers through diversifiedchannels, including actively participatingin product promotion events and industryassociations.

Suppliers are required to submit aSupplierInformation Formand undergo a review ofqualification documents. Depending on thecircumstances, a dedicated staff member maybe assigned to conduct on-site verification andassessment.

Key Metrics2024Unit

Units

%

Total Number of SuppliersSupplier Review Coverage Rate

2025

Supplier Situation

SupplierSourcing

SupplierOnboarding

SupplierEvaluation

SupplierClassification

SupplierTerminationThe Company implements a supplier exitmechanism. A supplier will be deemed non-compliant if it breaches contracts, failsto meet performance standards, violatesbusiness ethics, or is involved in majorquality or service incidents. The Companyfollows a formal notification procedure toclearly communicate the reason for the exitand immediately removes the supplier fromthe approved supplier list.

Procurement ManagementTo establish a standardized and transparent procurement system, Highton Development has formulated and implemented aseries of management regulations, including theForeign-Shipping Oil Procurement Process Standardand theOffice SuppliesProcurement System, which systemically regulate procurement processes and detailed implementation rules. At the same time,the Company strictly governs the conduct of procurement personnel, explicitly prohibiting any abuse of authority for personalgain, ensuring that procurement activities are conducted fairly and with integrity.The Company’s Vessel Operations Procurement Platform and Domestic-Shipping Supplier Bidding Platform are now in operation.The Vessel Operations Procurement Platform comprehensively covers procurement needs for vessel-end supply chain, spare parts,

Equal Treatment of Small and Medium-Sized Enterprises

The Company consistently adheres to the principle of fairness in its business dealings, treating all small and medium-sizedenterprise (SME) partners equally and striving to build long-term, stable cooperative relationships. During the Reporting Period, theCompany did not have any instances of overdue payments to SMEs.

Joint Progress in the Industry

By actively participating in various industry activities, the Company continuously absorbs advanced practices, shares insightsand experiences in the shipping industry, and enhances its brand influence and industry visibility. At the same time, we activelyexplore potential markets and collaborate with industry partners to build cooperative platforms, aiming to create greater value forour clients.

Case Breakbulk Europe

From May 13 to 15, 2025, Highton Development participated in theBreakbulk Europe (BBK) held in Rotterdam, the Netherlands. Duringthe exhibition, the team engaged in in-depth exchanges with globalshipowners, cargo owners, and industry partners, presenting aprofessional and open image. This effectively enhanced the Company’sinternational brand influence and showcased the strength and capabilitiesof Chinese shipping enterprises to the world. Moving forward, HightonDevelopment will continue to uphold an open and cooperative approach,working hand in hand with global partners to explore new horizons inmaritime logistics.

Breakbulk Europe Exhibition

CaseWorld Breakbulk Expo

From March 6 to 7, 2025, Highton Development participated in the2025 World Breakbulk Expo (WBX) in Shanghai. During the event,the Company’s booth attracted numerous domestic and internationalclients for discussions and negotiations. This participation effectivelyenhanced the Company’s brand influence in the international breakbulkshipping sector and laid a solid foundation for subsequent global marketexpansion.

World Breakbulk Expo

Full Lifecycle Management of Suppliers

and voyage repair services, while the Domestic-Shipping Bidding Platform focuses on serving downstream shipowner clients.To date, it has completed the qualification review and account setup for multiple shipowners. All suppliers for the Company’sprocurement projects participate in open bidding through the respective platforms.

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Harmony and Safety, Creatinga Better Future Together

Highton Development values the realization of employee potential and has established comprehensive platforms for trainingand career growth, enabling employees to gain development and recognition alongside the Company’s long-term progress. TheCompany upholds safety as a bottom line, deeply cultivates end-to-end safety management, and strengthens safety safeguardsacross all shipping operations to ensure stable business performance. At the same time, it actively fulfills social responsibilities,adheres to the principles of sustainable development, and collaborates with partners to build a healthy business ecosystem.Through concrete actions, the Company contributes to industry advancement and social development, demonstrating corporateresponsibility.

Harmony and Safety, Creating a Better Future Together

Navigation Safety ManagementProtecting Employees’ Rights and InterestsContribution to Society

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Navigation Safety ManagementHighton Development pays close attention to the physical and mental well-being of its employees, with particular focus on theunique working environment of seafarers. The Company has established a comprehensive system of management regulations,clearly defining safety responsibilities at all levels and implementing measures to safeguard physical and mental health. Itcontinuously optimizes occupational health management for both shore-based staff and crew, and steadily improves preventivemechanisms and protection systems, creating a safe, healthy, and stable working environment that effectively safeguards thewell-being of every employee.

Governance

The Company adheres to the safety philosophy of “Cherish life and respect the ocean” and implements the safety andenvironmental protection policies of “Safety First, Health and Environmental Protection, People-Oriented, and ContinuousImprovement”. In compliance with theInternational Convention for the Safety of Life at Sea(SOLAS) and theLaw of the People'sRepublic of China on Work Safety, the Company has formulated multiple management regulations, including:

Navigation in Shallowand Restricted Shallow Waters, Guidelines for Anti-Piracy, Terrorism, and Stowaway Incidents, Health Supervision Procedures,Shipboard Medical Assistance Instructions, andRegulations on Work Arrangements and Rest Periods Onboard. These measuresensure sufficient resource allocation and professional shore-based support for vessel operations, effectively creating a safe,healthy, and high-quality working environment for all employees.

Safety Management System

Board of DirectorsThe Board of Directors serves as the highest leadership and decision-making body for safety management. It is responsible for approving theCompany’s overall safety policies, strategies, and objectives, and for reviewing and deciding on major safety matters.General ManagerThe General Manager is the primary person responsible for safety, tasked with formulating safety policies, approving the safety managementsystem, ensuring resource allocation, and supervising and incentivizing safety management practices.DepartmentsMarine Department oversees vessel navigation safety, pollution prevention operations, and emergency drills; responsible for meteorologicalnavigation, cargo stowage, and responses to Port State Control (PSC) inspections.Engine Department ensures the safe operation of shipboard mechanical and electrical equipment, manages maintenance, spare parts supply,and the validity of technical certificates.Crew Department ensures crew competency, organizes safety training and assessments, handles crew disputes, and coordinates personnelduring emergencies.In 2025, the Company conducted a comprehensive review of key aspects of the system, including policy implementation, fleetaudits, and document control. Based on the evaluation, the Company’s SMS was confirmed to comply with theInternationalSafety Management (ISM) Code, fully covering vessel safe operation and pollution prevention procedures. The Company’s safetypolicies and objectives were effectively implemented, and safety and anti-pollution activities were largely in line with documentedrequirements, demonstrating that the system continues to operate effectively.

To fully implement the primary responsibility for work safety the Company has formulated theManagement Procedure forImplementing the Work Safety Responsibility System for All Employees. This procedure aims to clarify and publicly communicatethe work safety responsibilities of all personnel involved in safety and pollution prevention within the system. By providingcomprehensive and effective support and safety assurance for the Company’s vessels, it continuously enhances employees’awareness of work safety, professional skills, operational competence, and emergency response capabilities. Accordingly, theGeneral Manager, shore-based staff, captains, and crew members are all required to sign theWork Safety Responsibility Statement

to ensure that the Company’s work safety policies and guidelines are effectively implemented and enforced.

Safety Supervision and Management

The Company has established a training management system and dynamically updates theAnnual Shipboard Training PlanandAnnual Shore-based Training Planto ensure coverage of all shore-based personnel and crew. Captains and department headsorganize relevant training in accordance with actual operational conditions. At the same time, the Company strictly implementstheCrew Assessment, Designated Promotion, and Training Needs Procedure, evaluating training effectiveness throughregular assessments and on-site questioning, identifying gaps between employees’ actual capabilities and safety managementrequirements, and developing targeted enhancement training programs accordingly.During the Reporting Period, the Company organized multiple planned training sessions on safety laws, regulations, andinternational certifications, covering key areas such as theInternational Safety Management (ISM) Code, International Ship andPort Facility Security (ISPS) Code, and theMaritime Labour Convention (MLC). The training aimed to enhance crew compliance,operational safety, and risk prevention capabilities. By combining training with recognition programs for outstanding crewmembers and vessels, the Company further strengthened the construction of a safety culture, effectively guiding all personnel tofollow standardized operating procedures and ensuring the safety of maritime operations.

Safety Training and Education

CaseSafety Awareness TrainingIn November 2025, the Company organized its crew to participate in a safety awareness training conducted byFujian Chuanzheng Communications College, Fuzhou Maritime Safety Administration, and Fuzhou International CrewClub. During the training, crew members learned about the risk characteristics and collision avoidance measures forcommercial and fishing vessels, and mastered the operational procedures of the Ship Dynamic Monitoring System. Thetraining effectively enhanced their ability to identify risks and respond to emergencies in real operational scenarios.

Crew Safety Training

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Key MetricsUnit2025

1,027

1,205

3.78

SessionsTraining participantsPerson

HourHours/Person

%

Number of Safety Training SessionsNumber of Participants in Safety TrainingNumber of Participants in Safety Training

Total Training HoursAverage Production Safety Training Hours per Employee

Employee Coverage Rate in Safety Training

Safety Training Overview

As of the end of the Reporting Period, the Company has obtained the Document of Compliance (DOC) issued by relevantauthorities including the Maritime Safety Administration of the People’s Republic of China, the Panama Flag State, and the MarshallFlag State. All applicable vessels have also obtained the Safety Management Certificate (SMC), achieving full standardization andregulated operation of the safety and pollution prevention management system.

Safety Certification

Type of Risk/Opportunity

Description

Explanationof FinancialImpact

ImpactDuration

Impact onValue Chain

Response Measures

Legal Risks

In the event of a safetyincident, the Company mayface risks such as compensatingrelevant parties or damage totransportation assets.

Costincrease

Mid-termOperations

Continuously improve the safetymanagement system in accordance withlaws, regulations, and relevant standards.

OperationalRisks

The shipping industry facesmultiple risks, including severeweather, natural disasters, vesselaccidents, pirate attacks, andequipment failures, which caneasily lead to safety incidents,resulting in vessel and cargolosses, compensation, and evenbusiness disruption.

Costincrease

Short-term

OperationsDownstream

The Company has establishedcomprehensive specialized managementsystems for various emergencies, clearlydefining standardized emergency responseprocedures and key handling measures. Itpromotes the standardization, transparency,and regulation of emergency responsemechanisms to ensure that emergencyhandling is systematic, efficient, andorderly.

Operationalopportunities

Effective safety managementcan enhance the Company’sreputation, attract more clientsor investors, and therebyincrease revenue or reducefinancing costs.

Incomeincrease

Mediumand long-term

OperationsDownstream

Promote the development of an intelligentsafety management system;Focus on improving crew capabilities inoperating smart devices and data analysis(e.g., COSCO Shipping Technology).

Strategy

Risk IdentificationRisk AssessmentRisk ResponseRisk Monitoring

Identify potential hazards in the workplacethrough physical inspections, analysis of taskexecution methods, use of checklists, referenceto general risk assessments, and review ofaccident reports;Identify hazards by asking key questions such as“Is there a source of harm?” and “How could theharm occur?”Implement appropriate control measures basedon the results of the risk assessment to mitigaterisks;Develop detailed work plans and emergencyprocedures to ensure operations are conductedunder safe and controllable conditions;Hold regular safety meetings, conduct safetytraining, and carry out emergency drills;Provide necessary resources and support toensure sufficient emergency response capabilityand resources in case of an incident.

Determine risk levels using a risk matrix byconsidering the severity of hazards and thelikelihood of occurrence;Risk assessment records must be retained inaccordance with regulations and periodicallyreviewed to reflect any changes.Continuously monitor risks and review and updatethem as necessary;Conduct a reassessment of risks in the eventof adverse incidents, changes in procedures, oralterations in conditions.

Impact, Risk, and Opportunity Management

In the course of shipping operations, the Company may face risks such as cargo damage or loss due to force majeure eventsor human error. To enhance maritime operational safety and reduce the likelihood and severity of incidents, the Company hasdeveloped theRisk Assessment and Control Procedure. This document identifies, evaluates, and controls potential risks in keyoperational processes, continuously strengthening the Company’s capacity to ensure safe transportation.

Risk Assessment and Control

The Company has formulated theManagement Procedure for Preventing Recurrence of Deficiencies Identified in PSC and OtherInspectionsto address vessel deficiencies and non-conformities identified during Port State Control (PSC) inspections and by otherregulatory authorities. By establishing standardized processes for deficiency analysis and corrective verification, the Companyensures that all issues are effectively rectified and prevented from recurring, thereby maintaining continuous compliance withsafe operation and environmental protection requirements. The Company, using checklists developed based on internationalconventions and its Safety Management System, conducts systematic inspections of key areas on its vessels, including the bridgeand engine room. Captains and other key personnel carry out pre-arrival self-inspections according to thePSC Inspection ItemsPre-Arrival Checklistto ensure that all equipment and operations comply with regulatory and operational standards.In 2025, therewere

PSC safety inspections,

FSC inspections,

internal vessel audits, and

external vessel audits.

Safety Inspections and Hazard Identification

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The Company has established procedures such as theCompany Emergency Response Procedureand theOnboard EmergencyResponse Guide and Training Manual, which clearly define handling protocols for various vessel emergencies, including fires,oil spillage, and groundings. These procedures provide guidance for different emergency scenarios, and continuous training isconducted to strengthen crew emergency response capabilities, ensuring safe navigation.During the Reporting Period, the Company implemented its annual drill plan, organizing joint ship-to-shore and shore-basedemergency exercises to continuously test emergency resource allocation, personnel coordination, and overall response capabilities.These activities aim to enhance both emergency preparedness and safety awareness simultaneously. In 2025, the Companyconducted

ship-to-shore safety emergency exercises.

Safety Emergency Management

Metrics and TargetsThe Company has established the safety goal of “Zero Accidents, Zero Injuries, Zero Pollution” and regularly tracks progressto ensure operational safety, employee health, and environmental protection. In 2025, the Company continued to strengthensafety production management, and no major safety production accidents occurred throughout the year.

Work Safety

202411,072.90

Key MetricsUnit

in RMB 10,000PersonPersonWorking Days%%Session

2025

18,632.34

Occupational Health

11.108.74Investment in Work-Related Injury Insurancein RMB 10,000

Hull and P&I Insurance Coverage Rate(Including Crew Personal Injury)

%

Navigation Safety Metrics

Cargo Safety Management

The Company has established relevant management regulations, including theCargo Handling Regulations. Captains are fully responsible forthe safety of onboard personnel and cargo, ensuring that cargo operations are conducted safely and in compliance with standards, and thatcargo is properly safeguarded throughout the transportation process.

Strengthening Safety Management

Typhoon Prevention

The Company has established multiple regulations, including theHeavy Weather Sailing Guidelines, Company Typhoon Command andOperational Procedures,andTyphoon Contingency Plan. These measures ensure standardized management of typhoon and severe weatherprevention, providing safety assurance for both vessels and crew.

Prevention of Piracy and Terrorist IncidentsThe Company has established theGuidelines for Anti-Piracy, Terrorism, and Stowaway Incidents. Captains are responsible for the safetyof navigation and special operations, implementing measures such as enhanced lookout, increased nighttime patrols, and maintaininguninterrupted communications to prevent piracy and armed robbery. The Company has also developed boarding response plans, prioritizing thesafety of crew members.

Occupational Health and Safety

The Company has established theHealth Supervision Regulations, which require crew members to complete symptom screenings,hearing tests, and blood/urine examinations before boarding. This ensures that their physical condition meets maritimerequirements and that they hold valid health certificates, effectively eliminating health risks and safeguarding navigation safety.During the Reporting Period, no cases of occupational disease were reported among Company employees.

Occupational Disease Hazard Monitoring

The Company has established theCrew PPE Usage Management Regulationsand theHighton Vessels Onboard PPE and ThermalClothing Supplementation Regulations. These regulations specify the issuance standards, usage requirements, and wearingprotocols for various protective equipment. Crew members are provided with essential protective gear, such as work uniforms andsafety shoes, and their use is mandatory, with substitution by cash or other items strictly prohibited.

Occupational Disease Prevention Measures100100Percentage of Special Operators Licensed%

Investment in Work Safety

Number of Work-Related Deaths

Total Number of Work-Related InjuriesLost Days due to Work-Related InjuryLost Time Injury Rate (per Million Hours)Lost Time Injury Frequency Rate (LTIR, per Million Hours)Number of Ship-to-Shore Safety Emergency Drills

To enhance data comparability and traceability, starting from this reporting period, the statistical scope of "Investment in Work Safety" has beenexpanded from Haitong Development (the parent company) to all entities within the scope of consolidated financial statements. The 2024 data hasbeen adjusted accordingly, and the adjusted data can more comprehensively reflect the Company's overall safety investment.

Scope of data statistics: Self-employed staff only, excluding interns, dispatched personnel, and outsourced employees.

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The Company has established theShipboard Medical Assistance Instructions, which ensure that crew members receive timely andeffective medical care onboard. Measures include equipping vessels with medical resources, establishing communication channels,activating emergency procedures, regularly inspecting facilities, and conducting training, all aimed at safeguarding the physicaland mental health of crew members.

Emergency Rescue and Medical Support

The Company has established theMental Health Management Procedureand provides professional services through onboardpsychologists. In addition, the Company supports captains in implementing effective mental health management measures,including regular mental health training, dissemination of mental health knowledge, and provision of counseling services, toenhance crew members’ awareness of psychological issues and their ability to self-regulate and cope.In addition, the Company actively optimizes the onboard working and living environment for crew members, organizing a varietyof cultural and recreational activities, promoting healthy lifestyles, and ensuring adequate rest. These efforts help crew relievework-related stress and maintain a positive mindset, thereby supporting overall mental health.During the Reporting Period, in accordance with the2025 Annual Training Plan, the Company organized a total of

trainingsessions throughout the year focused on crew mental health.

CaseDay of the Seafarer and Crew Mental Health Training

On the occasion of Day of the Seafarer, the Ship Management Center successfully organized a series of themed activitiesin April. In the morning, crew members participated in lectures on maritime culture and mental health training, whichenhanced their sense of professional mission and psychological resilience. In the afternoon, senior crew visited historicalmaritime sites, strengthening team cohesion through cultural heritage exploration. This event effectively combined culturalempowerment with team building, providing strong support for the development of a high-quality crew.

Lecture on Mental Health for Modern Seafarers

Protecting Employees’ Rights andInterestsThe Company upholds the talent philosophy of “Working together as one and leveraging individual strengths; Prioritizingintegrity and emphasizing performance”, fostering mutual development with employees. It is committed to building a fair andopen platform for talent growth, continuously improving training and empowerment systems, standardizing career advancementpathways, and implementing fair incentive mechanisms. This provides employees with a broad stage to showcase their abilitiesand apply their expertise. Through systematic protection and structured support, the Company promotes deep integration andalignment between individual employee value and organizational objectives, uniting all staff to work collaboratively and achieveshared progress, thereby realizing long-term goals of coordinated development and mutual growth for both the Company and itsemployees.

Compliant EmploymentHighton Development strictly adheres to theLabor Law of the People’s Republic of Chinaand theLabor Contract Law of the People’s Republic of China, upholding the recruitmentprinciple of “open recruitment, equal competition, and merit-based selection”. TheCompany has established theEmployee HandbookandHuman Resources ManagementSystem. Recognizing talent as the most critical development factor and a valuable asset,the Company is committed to translating this philosophy into action through systematicpolicies, fostering collective momentum for organizational growth.For the crew, the Company manages employment and performance in accordance withstandardized procedures such as theCrew Employment, Assignment, and AssessmentProcedure. Through qualification review, on-the-job assessment, contract signing, andposition promotion processes, the Company ensures proper management of crew hiringand duties. This safeguards crew members’ legal rights, including career developmentopportunities, while ensuring that vessels are staffed with a sufficient number of qualifiedand competent personnel, providing reliable teams to support shipping operations.

In 2025,the Company achieveda

% laborcontract signing rate.

The Company recruits talent through multiple channels, including social recruitment, campus recruitment, internal referrals, andschool-enterprise cooperation. By relying on standardized processes, clear criteria, and comprehensive evaluations, the Companyselects outstanding candidates who demonstrate strong job fit, good personal qualities, and development potential, continuouslyinjecting vitality into the organization’s growth.

Recruitment Process

ResumeScreening

TelephoneInquiry

ComprehensiveAssessment(Interview/Evaluation/Examination, etc.)

BackgroundCheck

HiringApproval

OfficialOnboarding

Post-OnboardingFollow-up andEvaluation

Key Performance

Care about Mental Health

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Environmental, Social and Governance Report 2025School-Enterprise Collaboration: A New Journey for theMaritime Industry

Within its maritime talent development ecosystem, Highton Development actively deepens industry-educationintegration by establishing stable partnerships with multiple maritime institutions, including Jimei University, FujianChuanzheng Communications College, and Quanzhou Ocean Institute. Through signing agreements, co-establishinginternship bases, offering “order-based classes”, and conducting on-campus recruitment, the Company precisely alignstalent cultivation with enterprise needs, providing customized training and supplying skilled maritime professionals.In addition, the Company continuously offers skills training for both students and active crew members, building aschool-enterprise collaborative system that matches supply and demand for crew development and placement, therebysupporting high-quality development in the shipping industry.

From January 6 to 10, 2025, Highton Development, in collaboration with DalianMaritime University and Shanghai Maritime University, organized the second phaseof its corporate visit program. Centered on the theme “Exploring Competencyfor Dry Bulk Business Talent”, the program enabled students to gain in-depthunderstanding of dry bulk shipping operations and career development pathsthrough on-site visits and industry practice. This initiative further strengthenedthe school-enterprise cooperation mechanism, providing an important platformfor cultivating maritime professionals who meet industry demands, and activelycontributing to the development of a skilled maritime workforce.

The second phase of the Maritime University & Highton Development corporatevisit program was successfully completed

In 2025, Highton Development organized a four-day intensive training program forfresh graduates. Led by a team of senior and mid-level business mentors, the trainingfocused on three core modules: corporate culture, core business, and workplace skills.Through this program, new campus recruits achieved comprehensive development,progressing from cultural integration and business understanding to a full transitioninto their professional roles.

Highton Development Campus Recruitment “Set Sail” Training Program

On August 15, 2025, Pu Lina, Deputy Secretary of the Party Committee of the Schoolof Logistics Science and Engineering at Shanghai Maritime University, led a team offaculty members to Highton Development for a student employment research visit.The two parties conducted in-depth discussions on deepening school-enterprisecooperation and talent cultivation. The Company provided detailed presentations onits development prospects, talent strategy, and employee training system. This activitylaid a solid foundation for further expanding collaboration and jointly nurturing high-quality professionals for the shipping industry.

Shanghai Maritime University Summer Research on Student Employment Visits

Highton Development

On July 24, 2025, a delegation of faculty and students from the School of Law,Dalian Maritime University visited Highton Development for the summer employmentpractice program. The two sides engaged in in-depth discussions on maritimetalent cultivation. Through company introductions, team-building exercises, andalumni sharing sessions, the Company helped students deepen their understandingof the shipping industry, laying a solid foundation for further school-enterprisecollaboration.

Dalian Maritime University 7th Summer Employment Practice Program VisitsHighton Development

Maritime University Corporate Visit

Summer Employment Practice Program

Summer Research on Student Employment

Campus Recruitment “Set Sail” Training Program

Protection of Employees’ Rights and InterestsThe Company strictly complies with laws and regulations such as theRegulations on Prohibiting the Use of Child Labor, theMaritime Labour Convention, and theForced Labour Convention, resolutely prohibiting and opposing the employment of childlabor and all forms of forced labor. The Company has established theManagement System for the Prevention of Child Labor andForced Laborand stipulates in theEmployee Handbookthat the hiring of child labor or forced labor is strictly forbidden. In theevent of inadvertent employment of child labor, immediate remedial measures are to be taken. Additionally, age verification hasbeen made a mandatory pre-screening step in the recruitment process to ensure that all hired personnel fully meet the legal agerequirements. During the Reporting Period, the Company did not employ any child labor or engage in any forced labor.

Anti-Child Labor and Forced Labor

The Company adheres to laws and regulations such as theLaw of the People’s Republic of China on Employment Promotion andThe Elimination of Discrimination in Respect of Employment and Occupation, and has established theDiversity, Equality, andInclusion Policy. It firmly opposes workplace discrimination and harassment and is committed to creating a diverse, equitable, fair,and inclusive working environment for all employees. The Company pledges to ensure that, throughout the entire talent selectionprocess, no distinctions are made based on gender, age, race, ethnicity, religious beliefs, social status, or physical health, and thatno additional conditions beyond the established job requirements are imposed, thereby safeguarding objectivity and fairness intalent decisions.

Building a Diverse Team

During the Reporting Period, the turnover rate of shore-based employees was 21.36%, and the retentionrate of seafarers was

76.12

%

.

Key MetricsUnit2025

Employee Structure

PersonPersonPerson

Total Number of EmployeesTotal Number of Shore-Based EmployeesTotal Number of Crew Members

Key MetricsUnit2025

PersonNumber of New Shore-Based EmployeesShore-Based Employee Recruitment

By Gender

By Recruitment

ChannelFemale：40 PersonMale：59 Person

Social Recruitment：82 PersonOn-Campus Recruitment：17 Person

Scope of data statistics: Self-owned crew members only, excluding trainee crew members, dispatched personnel, and outsourced crew members.

Key Performance

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Environmental, Social and Governance Report 2025

Number ofEmployees by

Region

Number ofEmployees byGenderFemale：105 PersonMale：263 Person

Number ofEmployees (by

Profession)

Number ofEmployees(by EmployeeLevel)Directors and Senior Management：5 PersonMid-Level Management：31 PersonFrontline Employees：332 Person

Chinese Mainland：361 PersonHong Kong, Macao, and Taiwan, China：5 PersonOverseas Regions：2 Person

Number of

Employees(by AcademicQualification)Master’s Degree or Above：24 PersonBachelor’s Degree：166 PersonJunior College and Below：178 Person

Number ofEmployees byAgeUnder 30 (Exclusive) Years Old：114 Person30 to 40 Years Old (Inclusive of 30, Exclusive of 40)：132 Person40 to 50 Years Old (Inclusive of 40, Exclusive of 50)：80 Person50 Years Old or Above：42 Person

Note: The above statistics on the Company’s employees do not include interns, trainee crew members, or dispatched and outsourced personnel. As of the end of theReporting Period, the total number of crew members on the Company’s self-owned vessels was 1,302 persons (including trainee crew and dispatched crew).

The Company relies on regular mechanisms such as the Employees’ Representative Congress to fully safeguard employees’democratic rights. Through employee representatives, the Company effectively exercises democratic management andsupervisory functions, thereby protecting employees’ lawful rights, interests, and legitimate benefits. During the ReportingPeriod, the Employees’ Representative Congress reviewed

proposals/projects.The Company continues to strengthen its people-oriented care by conducting regular employee satisfaction surveys coveringall employees each year. In 2025,

responses were collected from the shore-based employee satisfaction survey, withan overall satisfaction score of

4.40

(out of 5). The domestic-shipping seafarer satisfaction survey collected

responses, with an overall satisfaction score of

4.37

(out of 5).

Democratic Governance

The Company strictly implements theLaw of the People’s Republic of China on the Protection of Rights and Interests of Women,theProvisions on the Scope of Prohibited Labor for Female Employees, and other relevant laws and regulations, and continuouslystrengthens the protection of the rights and interests of female employees. The Company provides female employees with specialleave entitlements, including prenatal check-up leave, maternity leave, and nursing leave, ensuring that every female employeeenjoys equal, respectful, and safe treatment in the workplace.

Protection of Female Employees’ Rights and Interests

When employees are hospitalized due to illness, injured at work, or experience bereavement, the Company arranges forrepresentatives to visit them and provides condolence payments to express its sincere care and support.During the Reporting Period, the Company provided assistance to a total of

employees in need. The number of employees indifficulty assisted per RMB 100 million of revenue was

0.11

.

Care for Employees in Need

Optimization of Remuneration and BenefitsThe Company has established a standardized compensation management framework by formulating theCompensationManagement Policyand theSeafarer Compensation Management Policy, clearly defining the components of remuneration andthe mechanisms for dynamic adjustment. For shore-based employees, the Company adopts a structured compensation systemcomprising basic salary, position-based salary, performance-based pay, length-of-service pay, benefits and allowances, and anannual performance bonus. Seafarer compensation consists of basic salary, position allowances, other subsidies, and a repatriationbonus. With respect to salary adjustments, the Company takes into comprehensive consideration multiple factors, includingindustry-wide wage growth, inflation levels, changes in job positions, and the Company’s operating performance, to ensure thatthe compensation system is aligned with the Company’s stage of development while achieving an appropriate balance betweeninternal equity and external market competitiveness.

Compensation System

CaseWomen’s Day ActivitiesTo celebrate International Women’s Day on March 8, the Company organized a ring-toss game. Female employees participated enthusiastically, relieving work-relatedstress in a relaxed and enjoyable atmosphere while fully experiencing the joy of thefestival and the Company’s care. This activity not only enriched the spiritual andcultural life of female employees but also enhanced team cohesion.

Women’s Day Activities

Administrative Staff：37 PersonFinancial Audit Staff：32 PersonShip Management and Technical Staff：40 PersonCrew Members：126 PersonProcurement Staff：14 PersonShipping Operations Staff：94 PersonInformation Technology Staff：25 Person

Equity Incentive

In April 2025, the Company held a board meeting to review and approve theProposal on the 2025 Stock Option and Restricted StockIncentive Plan (Draft) of Fujian Highton Development Co., Ltd. and Its Summary. Since 2023, the Company has consecutively implementedequity incentive plans for three years (2023–2025). By closely linking the personal growth of core talents and key technical personnel withthe Company’s performance growth and value enhancement, the plan aligns the objectives and direction of the Company, shareholders, andemployees, forming a solid community of shared interests and development.

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The Company clearly defines and specifies the composition of employee benefits in theHuman Resources Management Systemand theCompensation and Benefits Policy. The Company strictly implements statutory benefits by contributing to employees’pension insurance, medical insurance, work-related injury insurance, unemployment insurance, and maternity insurance inaccordance with the law. In addition, the Company provides non-statutory benefits such as transportation and communicationallowances, as well as marriage and childbirth grants, covering employees’ work and daily living needs and reflecting theCompany’s people-oriented approach and commitment to employee care.The Company has established theAttendance and Leave Management Policy, implementing a flexible work schedule of five daysper week and seven hours per day, while standardizing the management of various types of leave. To ensure navigation safetyand safeguard crew members’ legal rights, the Company implements a minimum rest period system for crew in accordance withtheRegulations on the Management of Working Hours Onboard. Using tools such as the Vessel Work Schedule and Crew Workand Rest Statistics, the Company maintains full-process records and dynamic tracking, effectively ensuring compliance with crewwork-rest management requirements.

Welfare System

The Company has established thePerformance Management Policy, which evaluates employee contributions based on monthlykey priorities and additional plans, aiming to enhance both employee capabilities and organizational effectiveness. In addition, theCompany has implemented a routine performance feedback and appeal mechanism. If an employee disagrees with an assessmentresult, they may submit an appeal to the Human Resources and Administration Center. The relevant department is required tocomplete the review and provide a response within 7 working days.

Performance Management and Feedback

Performance Appeal Process

Employee Disagrees with Assessment Result

Determine Acceptance

Submit Appeal LetterHuman Resources and Administration Center Investigates

Can It Be Resolved Through

Coordination?

Explain the Reason to the Employee

Submit to the Compensation and Evaluation Committee for ReviewResolve Through Coordination

Supporting Employee GrowthThe Company has established internal regulations, including theTraining Management Policy, to comprehensively enhanceemployees’ business knowledge, professional skills, and management capabilities. The Board of Directors supervises and approvesmajor matters related to employee training strategies and objectives. The General Manager is responsible for overseeing andTraining Management System

Types of Training

Induction Training

Industry knowledge, company overview, corporate culture, company policies and regulations, essential job knowledge, general skills, andprofessional conductJob-Specific Skills TrainingNew concepts, technologies, and professional knowledge relevant to the roleManagement Training

Management skills, leadership development, planning, and decision-making abilities

CaseLeadership Training – Management Capability Enhancement BootcampFrom April 21 to 22, 2025, the Company successfully held aManagement Capability Enhancement Bootcamp on the 51stfloor of ICC, with mid-to-senior managers and key positionpersonnel participating. Through case studies, experience sharing,and interactive sessions, the bootcamp effectively enhancedparticipants’ management thinking and cross-departmentalcollaboration skills. The Company will continue to follow up on theapplication of learning outcomes, strengthening the managementteam through a systematic development mechanism to ensure arobust talent pipeline supporting the Company’s growth.

Management Capability Enhancement Bootcamp

CaseCorporate Culture WorkshopTo deepen employees’ understanding of the Company’s core values andstrengthen their sense of identity and belonging, thereby fostering teamcohesion, the Company conducted a dedicated corporate culture training for allemployees. The training guided participants to explore the rich connotations ofgratitude, loyalty, and dedication, while inspiring them to internalize and practicethe values of “Struggle, Responsibility, Collaboration, Innovation”. It encouragedevery employee to take advancing the Company toward becoming a world-classshipping brand as a shared mission and to work together toward this goal.

Corporate Culture Specialized TrainingNoNoYesYes

managing employee training and development, while the Human Resources Department coordinates the planning, development,and operation of the Company’s training system, ensuring that training effectively supports talent development and strategicimplementation. Each department is responsible for identifying training needs within its domain, documenting business knowledge,facilitating employee participation, and evaluating training outcomes, ensuring that the training system is integrated into frontlinebusiness operations to create tangible value.The Company has established a comprehensive talent training system, combining online and offline methods as well as internaland external resources. The system covers multiple levels of training, including new employee onboarding, job-specific skillstraining, and management development programs. Through these systematic and targeted training activities, the Company aims tocomprehensively enhance employees’ professional competence and overall capabilities.

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CaseSeafarer Training and Team-Building – “Embrace the Sea, Lead with Ambition”In April 2025, the Company organized a seafarer training and team-building activity themed “Embrace the Sea, Leadwith Ambition”. A total of 19 top-ranked crew members on leave participated. The program included corporate culturepromotion, skills training, technical exchange, and cultural heritage exploration, aiming to enhance the seafarers’professional competence, strengthen team collaboration, and reinforce their identification with the Company’s culture.

Seafarer WorkshopsVisit to the Museum of Foochow Arsenal

CaseDigitalized Training for SeafarersTo address the systematic training needs of seafarers and the limitations of onboard learning networks, HightonDevelopment has established a digital training platform with efficient coordination between a PC backend and a seafarermobile app. Crew members can access learning modules anytime and anywhere in a modular and phased manner viaboth PC and app. The platform leverages onboard intelligent data exchange devices to effectively overcome network andcost constraints. Additionally, the system incorporates a ranking and assessment mechanism to motivate active learningand maintains full data records to objectively evaluate training outcomes, ensuring that the entire training process iscontrollable, traceable, and incentivized.

Key PerformanceUnit2025

Shore-Based Employee Training Overview

36.48

2,917

7,381

24.77

in RMB 10,000SessionPersonTraining participants

%HourHours/Person

Training Investment for Shore-Based EmployeesNumber of Training Sessions for Shore-Based EmployeesTotal Number of Shore-Based Employees TrainedTotal Participants of Shore-Based Employees TrainedTraining Coverage Rate for Shore-Based EmployeesTotal Training Hours for Shore-Based EmployeesAverage Annual Training Hours per Shore-Based Employee

The Company consistently regards talent development as a core driver of sustainable growth. By building an internal instructorteam, establishing training platforms, and implementing a mentorship program, the Company continuously enhances its trainingsystem. The goal is to comprehensively and multi-dimensionally improve the professional skills of all employees and cultivate ahigh-quality, highly capable talent team.

Improving the Training System

Construction of an In-House Instructor Team

The Company has established theInstructor Management Measuresto standardize the management of internal instructors and build aprofessional instructor team. This effectively supports training across all levels, promotes the accumulation of internal experience, and facilitatesknowledge sharing. In addition, the Company has implemented a comprehensive instructor incentive mechanism, including cultural recognition,instructor allowances, performance awards, and promotion priority, fully motivating instructors’ enthusiasm and creativity.Training Platform Construction

The Company has launched the “Cool College” online training platform, effectively overcoming time and space constraints and enablingemployees to engage in flexible, self-directed learning during fragmented time. Employees can select learning content based on their careerdevelopment needs, practical work scenarios, and personal interests, achieving personalized and systematic skill enhancement.Mentorship Program ImplementationThe Company implements theMentorship Program Implementation Plan, establishing a one-on-one mentorship system for newhires and employees newly assigned to different positions. Upon arrival, employees are assigned a mentor by the departmenthead, who provides guidance to help them quickly adapt to their role and integrate into the team. At the end of the mentorshipperiod, employees can only complete the program after a mentor assessment confirms satisfactory performance, ensuring thequality of talent development and alignment with job requirements.

Key PerformanceUnit2025

Seafarer Training Overview

1.43

1,0271,205

3.78

in RMB 10,000SessionPersonTraining participantsHourHours/Person%

Training Investment for SeafarersNumber of Training Sessions for SeafarersTotal Number of Seafarers TrainedTotal Participants of Seafarers TrainedTotal Training Hours for SeafarersAverage Annual Training Hours per SeafarerTraining Coverage Rate for SeafarersNote: The above seafarer training statistics pertain to the Company’s own crew members on self-managed vessels.

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The Company has established position management systems such asEmployee Appointment and Transfer Management, creatingcareer development pathways across four sequences: management, functional, technical, and marketing. This enables employeesto choose growth paths that suit their strengths, whether through vertical advancement or horizontal expansion. For the seafarerworkforce, the Company continuously optimizes theSeafarer Promotion Management Regulations, standardizing promotionprocesses and criteria. Incentive mechanisms, such as return-to-ship bonuses, are also implemented to attract and retaintalented seafarers, ensuring safe vessel operations and a stable crew structure.The Company encourages employees to independently plan their career development by aligning their professional capabilitieswith business needs. This approach allows employees to realize personal value while growing together with the Company,creating a virtuous cycle in which talent development and corporate strategy mutually reinforce each other.

Support for Employee Development

Career PathJob TypeManagement SequenceTechnical ProfessionalSequenceFunctional ProfessionalSequenceMarketing Sequence

Management PositionsPositions in Ship Operations, Engineering, Systems, Procurement, etc.Positions in Finance, Accounting, Cashier, Legal, Audit, Administration, HR, Operations, etc.Positions in Marketing, Sales, Business Development, Commerce, etc.

Grade Sequence

M1-M10

T1-P6P1-P6S1-S10

Highton Development Job Grade and Career Path System

To enhance employees’ overall competencies and meet the Company’s talent requirements, the Company formulated relevantregulations, providing subsidies for employees’ education and training in management knowledge, professional skills, and on-the-job degree programs. This initiative actively encourages employee development and growth, fostering a positive “learningenterprise” culture.

CaseCrew Professional Skills TrainingIn September 2025, the first “Highton-Prosean Electric Welding IntensiveTraining Cohort” successfully concluded, jointly organized by HightonDevelopment, HN Prosean Shipping Co., Ltd., and Henan Electric PowerVocational Training School. This training program provided the Company witha group of skilled electric welders, achieving seamless integration betweentraining and employment. Moving forward, both parties will continue to deepenthis training model and further expand the scale of skilled talent development.

Graduation Ceremony of the Intensive Training Cohort

CaseOrganizing the Company’s 2024 Performance Awards

To recognize ships and employees with outstanding performance and significant contributions in the Company’s2024 business management, and to foster exemplary role models across the organization, the Company conductedthe selection of the Highton Development 2024 “Sailing Excellence Award”, “Maritime Pioneer Award”, and “OutstandingWorker Award” in accordance with the principles of fairness, impartiality, and transparency.

The Company organizes a variety of engaging and diverse cultural activities to create a warm, vibrant, and inclusive workenvironment, aiming to continuously enhance employee satisfaction and team cohesion, while building a strong spiritualbond between employees and the enterprise for mutual development. The Company implements the6S Office EnvironmentManagementsystem, which sets clear requirements for cleanliness, safety, and resource utilization in all office and public areas,ensuring a safe, efficient, and orderly working environment.

Creating a Welcoming Haven

CaseCorporate Cultural Activities

On January 22, the Company held the 2024 year-end gala themed “LoveHighton, Embrace a Wonderful Life”. This annual event serves as a regularcompany tradition, aiming to review the past year’s work and recognizethe contributions of all employees. The gala also provides a platform forcommunication to kick off the new year’s work. The Company announced itscommitment to continue advancing various business initiatives in 2025.

Year-End Gala

On June 14, 2025, the Company successfully held a 20-kilometer trekking andteam-building activity as part of its Corporate Culture Day on Dalian Island,Pingtan. Despite heavy rain and muddy conditions, all participating employeesfaced the challenge head-on, consistently upholding the Company’s valuesof “Struggle, Responsibility, Collaboration, Innovation”. They demonstratedexceptional teamwork and resilience, ultimately completing the challenge asa group. This activity not only strengthened employees’ perseverance butalso reinforced their recognition of the corporate culture and enhanced teamcohesion through practical experience.

“Navigating Together, Embarking on a Shared Journey” Corporate Culture Day

Gala Event Venue

Event Venue

CaseBuilding a Learning-Oriented Enterprise

The Company encourages learning and is committed to cultivatinga learning-oriented organization, actively promoting a culture ofcontinuous learning and knowledge sharing. Through industryexchanges and cross-team experience-sharing sessions, employeescan interact and communicate efficiently, exchanging practicalexperience and innovative ideas. This open interaction not onlyaccelerates problem-solving but also significantly enhancesteam efficiency and professional capabilities. The Companyenables every member to grow rapidly through communication,transforming individual experience into collective wisdom,jointly driving efficient project delivery and achieving a win-winimprovement in both personal skills and team effectiveness.

Learning and Exchange Sessions

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CaseOrganizing Festival Activities

To uphold the traditions of the Dragon Boat Festival,the Company held a festival event in advanceon May 30 and distributed holiday gifts to allemployees. While celebrating this traditional festival,the activity also enhanced employees’ engagementin the Company’s corporate culture initiatives.

Dragon Boat Festival Activity

In July 2025, the Company held a themed event for ChinaMaritime Day. The event featured activities such as maritime-themed competitions and storytelling sessions. Through thislively and engaging format, the Company recognized theprofessional dedication of maritime personnel, paid tribute tothe spirit of seafaring, and strengthened team cohesion.

China Maritime Day Activities

Distribution of Festival GiftsChina Maritime Day Event

The Company regularly provides care and support for its employees through activities such as inviting retired employees to attendthe annual meeting, conducting onboard inspections, and visiting crew members to listen to their feedback and address theirpractical needs. To continuously improve living conditions on board, the Company has purchased various recreational facilities toenrich the crew’s cultural and leisure life outside of work. In addition, the Company invites crew members and their families toparticipate in annual meetings and other collective activities, further enhancing their sense of belonging and well-being, allowingthem to work with peace of mind and enjoy a comfortable life.

Onboard Fitness and Recreational Facilities

Crew Visits and Care Activities

Contribution to Society

Contributing to Social WelfareThe Company has always upheld a strong sense of social responsibility and actively engages in various social welfare initiatives.Through charitable donations, the Company gives back to society, putting corporate social responsibility into practice andcontributing solidly to building a harmonious, mutually supportive, and prosperous social environment. During the ReportingPeriod, the total number of volunteer participants was

person-times, with a total volunteer service duration of

hours.

Deepening Educational CollaborationThe Company actively strengthens university-enterprise cooperation by establishing the “Highton Scholarship” at Dalian MaritimeUniversity and Jimei University. On one hand, it provides incentives for outstanding students to support their growth; on theother hand, it builds a platform for close collaboration with the university, laying a solid foundation for the Company to attracthigh-quality talent in the industry. During the Reporting Period, the Company made cumulative donations of RMB 81,000 tosupport educational development initiatives.The Company has jointly established off-campus internship and practical trainingbases with the School of Law, the Schoolof Transportation Engineering, and theSchool of Foreign Languages at DalianMaritime University. This collaboration closelyconnects classroom theoretical knowledgewith real-world scenarios in the shippingindustry, helping students gain an in-depthunderstanding of industry practices andaccumulate valuable hands-on experience fortheir future careers, thereby forming a virtuouscycle of university-enterprise collaborativetalent cultivation. During the Reporting Period,the Company further explored diversifiedmodels of industry-education integration.Through complementary advantages and industry-academia collaboration, we strive to closely align the Company’s talent needswith the universities’ talent development directions, accurately meeting the Company’s workforce requirements at differentstages of development.

Joint Construction of Practical Teaching Base

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Respond to the Construction of the Belt and Road Initiative

The Pingtan Comprehensive Experimental Zone, where the Company is located, serves as an important bridge connecting both sides of the Taiwan Strait along the “Belt and Road”. Leveraging Fujian’s strategic advantage of “prospering by the sea”, we have established a shippingnetwork covering both domestic coastal areas and international ocean routes, actively implementing the “Maritime Power” strategy and the concept of green development. Through our subsidiaries, we engage in the international transport of dry bulk cargo such as coal, grain, androlled steel, with shipping routes spanning over 350 ports in more than 100 countries and regions worldwide.In recent years, alongside China’s efforts to diversify corn import sources, the company has increasingly strengthened its agricultural product trade with “Belt and Road” countries such as Bulgaria. Our well-established global network not only comprehensively meets customerneeds but also contributes to building a stable and sustainable food supply channel.

Maritime RescueHighton Development actively participates in maritime rescue operations, responding to various at-sea emergencies with professional and efficient capabilities, fully safeguarding human life. In international rescue efforts, the Company takes initiative and acts proactively, relying on a maturerescue system and a strong sense of responsibility to uphold humanitarian principles. By doing so, it effectively fulfills its social responsibility, contributing solidly to maintaining maritime safety and protecting the lives and rights of personnel.

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Key Performance Indicators

Governance PerformanceKey MetricsBenchmark Units20242025

Corporate GovernanceTotal Number of General Meetings of Shareholders HeldTimes56Number of Annual Shareholders' Meeting HeldTimes11Number of Special Meeting of Shareholders HeldTimes45Number of Proposals Reviewed and ApprovedItem2428

Number of Board MembersPerson77Percentage of Female Directors%14.2914.29Percentage of Independent Directors%42.8642.86Number of Meetings of Board of Directors HeldTimes1818Number of Proposals Reviewed and ApprovedItem5769Number of Meetings of Specialized Committees HeldTimes1514Number of Proposals Reviewed and ApprovedItem2744

Investor Relations ManagementCash Dividend per Shareyuan/share0.10.1Total Cash Distribution (Including Tax)in RMB 10,0009,116.139,277.71

Proportion to Net Profit Attributable to Shareholders of the Listed

Company in Consolidated Financial Statements

%16.7019.95Performance Exchange MeetingTimes45

Information Disclosure

Number of Periodic Reports Disclosed ExternallyCopy

Number of Interim Announcements Disclosed ExternallyCopy116131Number of Penalties for Violations in Information DisclosureTimes00

Compliance and Business EthicsNumber of Anti-Bribery and Anti-Corruption Trainings OrganizedTimes1319Number of Directors and Management Participating in Anti-Commercial Bribery and Anti-Corruption Training

Training participants816Training Coverage Rate of Directors and Management%100100Number of Employees Participating in Anti-Corruption TrainingTraining participants281269Number of Internal Integrity Special Audits ConductedTimes/8Signing Rate of Integrity Pledges by Shore-Based Employees%/100Total Number of Anti-Corruption and Anti-Bribery Reporting CasesTimes00Number of Corruption Litigation Cases Filed and ConcludedCase00

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Environmental PerformanceKey MetricsBenchmark Units20242025

Environmental Management

Total Environmental Investmentin RMB 10,0001,553.044,137.41Amount of Major Administrative Penalties Imposed by Ecological

and Environmental Authorities due to Environmental Incidents

in RMB 10,00000Energy Management

Total Direct Energy Consumptiontce237,335.44347,422.38MDO (Marine Diesel Oil) & MGO (Marine Gas Oil)ton10,552.3224,409.37

HFO (Heavy Fuel Oil)ton131,029.42189,386.79LFO (Light Fuel Oil)ton24,339.2328,903.35

GasolineLitres/5,813.31Total Fuel Oil Consumptionton165,920.97218,290.14

Total Indirect Energy Consumptiontce129.86135.39Office Electricity ConsumptionkWh111,696.32119,412.13Total Shore Power ConsumptionkWh944,897.83982,195.20Number of Shore Power UsesTimes170179Total Energy Consumptiontce237,465.30347,557.77Energy Consumption Intensity

tce/RMB 1 million(revenue)

64.978.23

Number of Vessels Completed with EPL RetrofitShip4056Number of Vessels Passed EEXI Classification AuditShip4056

Response to Climate ChangeTotal GHG EmissionstCO

e527,262.94771,778.22

GHG Emission Intensity

tCO

e/RMB 1 million(revenue)

144.11173.71

Direct GHG Emissions (Scope 1)tCO

e526,695.97771,010.72Indirect GHG Emissions (Scope 2)tCO

e566.97591.12Other Indirect Emissions (Scope 3)tCO

e/176.38Water Resource UtilizationTotal Water Consumptionton31,336.4934,301.11Office Water Consumptionton1,155.24925.71Freshwater Consumption by Vesselston30,181.2533,375.40Seawater Desalinated by Vesselston44,015.5779,045.10Water Consumption Intensityt/RMB 1 million (revenue)8.567.72

Waste GasesNitrogen Oxides (NOX) Emissionston12,390.9017,952.48Nitrogen Oxides (NOX) Emission Intensityt/RMB 1 million (revenue)3.394.04Sulfur Oxides (SOX) Emissionston1,410.832,034.95Sulfur Oxides (SOX) Emission Intensityt/RMB 1 million (revenue)0.390.46

WasteHazardous Waste Generatedm

/423.44Non-Hazardous Waste Generatedm

/2,031.61Total Waste Discharged into the Seam

1,531.731,392.46Total Waste Recycled Onshorem

526.481,044.16

Biodiversity ProtectionNumber of Vessels Equipped with Ballast Water Treatment SystemsShip4056

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Social PerformanceKey MetricsBenchmark Units20242025

Data Security and Customer Privacy ProtectionNumber of Information Security Training Sessions HeldTimes132Number of Participants in Information Security TrainingTraining participants11035Total Duration of Information Security TrainingHour/70Average Duration of Information Security TrainingHour/

Number of Incidents of Information Security and Privacy Protection

Violations during the Reporting Period

Times00Customer ServiceNumber of Customers Participating in SurveyUnits/58

Customer Satisfaction Rate%/97.85 Customer Complaint Resolution Rate%/100Timely Resolution Rate of Customer Complaints%/100

Supply Chain Management

Total Number of SuppliersUnits940988Supplier Review Coverage Rate%100100Number of Events with Significant Risks and Impacts in the Supply

Chain

Case00Number of Personnel InvolvedPerson00Number of Suppliers InvolvedUnits00Amount of overdue payments to SMEsin RMB 10,00000

Labor Relations Management

Percentage of Contract Workers%100100

Number of New Shore-Based EmployeesPerson11499Percentage of New Employees by Gender

FemalePerson3840MalePerson7659Percentage of New Employees by Recruitment Channel

Social RecruitmentPerson8282On-Campus RecruitmentPerson3217Other Recruitment ChannelsPerson00Total Turnover Rate of Shore-Based Employees%

22.5621.36

Crew Retention Rate%73.7976.12Number of Employees In Difficulty AssistedPerson/5The Number of Employees In Difficulty Assisted Per RMB 100 Million

of Revenue

Person/0.0011Employee SatisfactionNumber of Shore-Based Employees Participating in Satisfaction

Survey

Person192246Satisfaction Score of Shore-Based EmployeesPoints4.26/54.40/5Number of Domestic Trade Crew Members Participating in

Satisfaction Survey

Person125126Satisfaction Score of Domestic Trade Crew MembersPoints4.51/54.37/5

Diversity and Equal Opportunity

Total Number of EmployeesPerson355368Total Number of Shore-Based EmployeesPerson210242Total Number of Crew MembersPerson145126Number of Employees by RegionChinese MainlandPerson348361

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Hong Kong, Macao, and Taiwan, ChinaPerson55

Overseas RegionsPerson22Number of Employees by Gender

FemalePerson89105MalePerson266263Number of Employees (by Employee Level)

Directors and Senior Management

Person65Mid-Level ManagementPerson2731Frontline EmployeesPerson322332Number of Employees (by Profession)

Administrative StaffPerson5037Financial Audit StaffPerson2832

Procurement StaffPerson1114Information Technology StaffPerson/25Shipping Operations StaffPerson8394Ship Management and Technical StaffPerson3840Number of Crew Members (Excluding Trainee, Dispatched, or

Outsourced Crew)

Person145126Number of Employees by AgeUnder 30 (Exclusive) Years OldPerson11211430 to 40 Years Old (Inclusive of 30, Exclusive of 40)Person13413240 to 50 Years Old (Inclusive of 40, Exclusive of 50)Person7080

50 Years Old or AbovePerson3942By Academic Qualification

Master’s Degree or AbovePerson1724

Bachelor’s DegreePerson146166Junior College and BelowPerson192178

Development and Training

Investment in employee trainingin RMB 10,00023.6137.91

Staff training hoursHour6,6508,586Employee Training ParticipantsTraining participants3,4253,944Employee Training Coverage Rate%100100

——Shore-Based EmployeesTraining Investment for Shore-Based Employeesin RMB 10,00022.936.48Number of Training Sessions for Shore-Based EmployeesSession163170Total Number of Shore-Based Employees TrainedPerson257298Total Participants of Shore-Based Employees TrainedTraining participants2,4212,917Training Coverage Rate for Shore-Based Employees%100100Total Training Hours for Shore-Based EmployeesHour5,8367,381Average Annual Training Hours per Shore-Based EmployeeHours/Person22.7124.77

——CrewTraining Investment for Seafarersin RMB 10,0000.711.43Number of Training Sessions for SeafarersSession385358

Total Number of Seafarers TrainedPerson309319Total Participants of Seafarers TrainedTraining participants1,0041,027Total Training Hours for SeafarersHour8141,205Average Annual Training Hours per SeafarerHours/Person2.633.78Training Coverage Rate for Seafarers%100100

The number of "Directors, Supervisors, and Senior Management" disclosed for the 2024 reporting period was 6 (including Supervisors). In 2025, following an optimizationof the corporate governance structure, the statistical scope was adjusted to "Directors and Senior Management."

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Safety and Health

Number of Work Safety AccidentsCase02Number of Work-Related DeathsPerson00Total Number of Work-Related InjuriesPerson00Lost Days due to Work-Related InjuryWorking Days00Lost Time Injury Rate (per Million Hours)%00Lost Time Injury Frequency Rate (LTIR, per Million Hours)%00

Number of Safety Training SessionsSessions/

Number of Participants in Safety TrainingTraining participants/1,027Number of Participants in Safety TrainingPerson/

Total Training HoursHour7731,205Average Production Safety Training Hours per EmployeeHours/Person2.183.78Employee Coverage Rate in Safety Training%/100Number of Ship-to-Shore Safety Emergency DrillsSession107

Investment in Work Safetyin RMB 10,00011,072.9018,632.34Percentage of Special Operators Licensed%100100Hull and P&I Insurance Coverage Rate(Including Crew Personal Injury)

%100100Investment in Work-Related Injury Insurancein RMB 10,0008.7411.10

Contribution to SocietyTotal Public Welfare Inputin RMB 10,0006.28.10Number of Volunteers Participating in ActivitiesParticipations/20Total Hours of Volunteer ActivitiesHour/40

Indexes

Corresponding Sections

Shanghai StockExchange ListedCompany Self-RegulatoryGuidelines No. 14 –Sustainability Report

(Trial)

China CorporateSocialResponsibilityReportingGuidelines(CASS-ESG 6.0)

GRISustainabilityReportingStandards

About This Report/P12-1/2-2/2-3Message from the Chairman/P22-22About Highton Development/P32-6Key Sustainable Development Performance in 2025///Topic: Digital and Intelligent Leadership, Smart Shipping

Across the Seas

Article 42 S2.1203-2

I. SoundGovernance andCompliance asthe Foundation

Governance for SustainableDevelopment

Articles 5, 9, 10-19, 51, 53G1.1-G1.32-22/2-29/3-1-3-3Corporate GovernanceArticle 53/2-9/2-12Party Building and Leadership///Protection of Investors’ Rights and

Interests

Article 53/2-29Compliance and Risk ManagementArticles 12, 15G1.2207-1/207-2Business BehaviorsArticles 54-56G2.1/G2.2205-2/205-3/206-1

Green andLow-Carbon,Safeguarding theEcosystem

Green and Low-Carbon OperationArticles 20-27, 34-35E1.1/E3.1305-1/305-2/302-1/302-3Strengthening EnvironmentalManagement

Articles 29-31, 33E2.1/E2.2/E2.4

304-5/305-6/305-7/306-1/306-2/307-1Optimizing Resource UtilizationArticles 34, 36E3.1/E3.3303-1/305-4Biodiversity ConservationArticle 32E2.3304-2-304-4

Afterword to the Report

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FeedbackThank you for reading this report. To improve Highton Development’s performance in environment, society, and governance,further enhance its sustainable development capabilities and levels, and strengthen communication with all sectors of society, wesincerely hope that you will provide valuable feedback and suggestions on our work and report amidst your busy schedule.

Your Information

Name: Tel.: _______________________Unit: Email: _______________________

Multiple Choice (Please check √ in the appropriate box)

1. Your overall evaluation of Highton Development’s 2025 ESG Report:

□ Good □ Average □ Needing Improvement □ I don’t know

2. How do you think Highton Development has performed in terms of customer service?

□ Good □ Average □ Needing Improvement □ I don’t know

3. How do you think Highton Development has performed in terms of green shipping?

□ Good □ Average □ Needing Improvement □ I don’t know

4. How do you think Highton Development has performed in terms of corporate governance?

□ Good □ Average □ Needing Improvement □ I don’t know

5. How do you think Highton Development has performed in terms of team building?

□ Good □ Average □ Needing Improvement □ I don’t know

6. How do you think Highton Development has performed in terms of social welfare?

□ Good □ Average □ Needing Improvement □ I don’t know

7. How do you think Highton Development has performed in terms of sustainable supply chains?

□ Good □ Average □ Needing Improvement □ I don’t know

8. Do you have any other opinions on Highton Development’s sustainable development?

_________________________________________________________________

Corresponding Sections

Shanghai StockExchange ListedCompany Self-RegulatoryGuidelines No. 14 –Sustainability Report

(Trial)

China CorporateSocialResponsibilityReportingGuidelines(CASS-ESG 6.0)

GRISustainabilityReportingStandards

DigitalIntelligence-Driven,CollaborativeValue Creation

Comprehensive Digital Intelligence

Development

Article 42S2.1203-2Data Security and Privacy ProtectionArticle 48S3.4418-1High-Quality Customer ServiceArticle 47S3.3416-1/416-2Responsible Supply ChainArticles 44-46S3.1308-1/414-2

Harmony andSafety, Creatinga Better FutureTogether

Navigation Safety ManagementArticles 49, 50S4.2403-1-403-7/403-9/403-10Protecting Employees’ Rights and

Interests

Articles 49, 50S4.1/S4.3

401-1/401-2/404-1/404-2/404-3/406-1/405-1/407-1/408-1Contribution to SocietyArticles 38-40S1.2/

Afterword to theReport

ESG Key Performance Form/A2/

IndexesArticle 57A3/Feedback/A6/

XIN HAI TONG新海通

ENVIRONMENTAL,SOCIAL ANDGOVERNANCE (ESG) REPORT

Fujian Highton Development Co., Ltd.

2025

Address: 42nd floor, Shenglong global building (ICC global center),No. 23, Changting street, Ninghua street, Taijiang District, FuzhouTel: 0591-88086357Website: www.fj-highton.com

Fujian Highton Development Co., Ltd.