现代投资：公司2025年度可持续发展报告（英文版）

2025 Sustainability Report

CONTENTS

01 About This Report 03 Message from the Chairman 05 About Us 05 Company Profile 05 Honors and Recognitions 07 2025 in Figures 08 ESG Governance 08 Board Statement 08 ESG Governance Structure 09 Stakeholder Communication 10 Materiality Assessment

67 Outlook 68 Appendixes 68 Key ESG Performance 69 Report Indicator Index 70 Reader Feedback

11 Rooted in Hunan, Forging Xiandai Governance

Solidifying Corporate Gov-13 ernance

16 Strengthening Risk Management

23 Warmth Along Hunan Highways, Delivering Premium Xiandai Services

Inspiring Technological25 Innovation

Safeguarding Safety Bot-26 tom Line

Delivering Premium Servic-32 es

35 Protecting Hunan's Landscape, Honoring Xiandai's Low-Carbon Commitment

37 Addressing Climate Change

44 Deepening Green Operations

Protecting Ecological Envi-49 ronment

51 Gathering Talents in Hunan, Nurturing Xiandai's Talent Workforce

53 Protecting Employees Rights and Interests

Prioritizing Employee54 Development

56 Caring for Employees Health and Well-being

59 Committed to Hunan's Development, Fulfilling Xiandai's Social Responsibilities

61 Building a Responsible Supply Chain

62 Promoting Win-Win Development with Partners

Fulfilling Community63 Responsibilities

About This Report

Report Description

This annual report is the fourth Sustainability and Environmental, Social and Governance ("ESG") Report released by Xiandai Investment Co., Ltd. ("Xiandai Investment", "Company" or "We\our" for short)

Reporting Boundary

This report covers Xiandai Investment and our branches, wholly-owned subsidiaries, and holding subsidiaries. Unless otherwise stat ed, the scope of this report is the same as that of the Company's annual report.

Branches

Changsha Branch of Xiandai Investment Co., Ltd. ("Changsha Branch" for short)

Huaihua Branch of Xiandai Investment Co., Ltd. ("Huaihua Branch" for short)

Wholly-owned subsidiaries

Dayou Futures Co., Ltd. ("Dayou Futures" for short)

Hunan Modern Environment Technology Co., Ltd. ("Modern Environment" for short)

Hunan Modern New Energy Co., Ltd. ("Modern New Energy" for short)

Modern Wealth Capital Management Co., Ltd. ("Modern Wealth" for short)

Hunan Modern Assets Management Co., Ltd. ("Modern Assets" for short)

Hunan Modern Hongyuan Venture Capital Co., Ltd. ("Modern Hongyuan" for short)

Holding subsidiaries

Hunan Yueyang Baling Rural Commercial Bank Co., Ltd. ("Yueyang Baling RCB" for short)

Hunan Xiangheng Expressway Co., Ltd. ("Xiangheng Company" for short)

Hunan Huaizhi Expressway Construction and Development Co., Ltd. ("Huaizhi Company" for short)

Reporting Scope

Unless otherwise specified, the time range of the data contained in this report is from January 1, 2025 to December 31, 2025 ("within this year" or "during the reporting period" for short). In order to enhance the comparability and completeness of the report, it wil be extended appropriately.

Preparation Basis

• Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange - Sustainability Report (For Trial Implemen tation)

• Self-Regulatory Guidance No. 3 for Companies Listed on Shenzhen Stock Exchange – Preparation of Sustainability Report

(GRI Standards) issued by Global Sustainability Standards Board

(SDGs) issued by United Nations

● Reference Indicator System for ESG Reports of Listed Companies Controlled by Central State-owned Enterprises issued by the State-owned Assets Supervision and Administration Commission of the State Council (SASAC

issued by the International Organization for Standardization (ISO

Data Source

The financial data disclosed in this report is sourced from the 2025 Annual Report of Xiandai Investment Co., Ltd. Other data comes from the Company's oficial documents and statistical reports, which have been reviewed by relevant departments. Unless oth erwise specified, all currency amounts involved in this report are in CNY. During the reporting period, due to some adjustments in statistical methods and restatements of certain data, for any discrepancy with previous reports, this report shall prevail.

Reliability Assurance

The Board of Directors of the Company hereby guarantees that the report is free of misrepresentations or misleading statements, and bears responsibility for the authenticity, accuracy and completeness of the contents

Report Access

This report includes Chinese and English versions, is designed to meet the information needs of stakeholders from diferent geo graphical and linguistic backgrounds, and is published annually in electronic format. You can obtain the electronic version of the report on the www.cninfo.com.cn. If there is any discrepancy between the two versions, the Chinese version shall prevail

Message from the Chairman

The journey stretches far and wide; the time to strive is now. The year 2025, just past, marks the conclu sion of the "14th Five-Year Plan" and a pivotal year in the Company's development—one that connects the past and the future while forging ahead with perseverance. Over the year, we integrated environmental risk considerations into strategic decision-making, embedded commitment to social responsibility into daily operations, and strengthened adherence to long-termism in corporate governance. It is this exploration of internalizing ESG into our development DNA that, guided by the "Dual Carbon" goals, has enabled us to achieve steady growth in operating performance. At the same time, we have demonstrated the responsibility and warmth of a state-owned listed company across broader dimensions: environmen tal protection, employee growth, and win-win cooperation with partners.

This year, we strengthened fundamentals, improved quality and eficiency, and strove to be a pioneer in modernizing corporate governance. We stayed committed to high-quality development led by high-quality Party building, optimized the "Three Importance and One Greatness" decision-making mechanism, strengthened political oversight and integrity development, improved the long-term mechanism for compliance management, prevented and resolved various risks, and translated institutional strengths into governance eficiency. The Company's Wind ESG rating rose from Grade A to AA, ranking among the top three in the expressway sector and first among Hunan's provincial state-owned enterprises. We successively received honors such as "Outstanding Sustainable Development Practices of Listed Companies" and "Wind's 2025 China Listed Companies ESG Best Practices Top 100 (Mid-and Small-Cap)". Our ESG management leads both the industry and the province, efectively enhancing the Company's long-term investment value and brand reputation in the capital market.

This year, we pursued digital-intelligent operations and innovation, acting as a "trailblazer" in digital transformation of transportation. In digital-intelligent innovation, we fostered new "Data × Transportation" business forms; our data application achievements won multiple provincial and ministerial honors. We formulated the "Data-Linked Logistics" strategy, continuously strengthening and expanding the road-related industrial ecosystem. We promoted the iteration and application of core technologies including AI recognition and IoT communication, improving the efectiveness of technology deployment. In smart highway development, we have rolled out the "post-paid toll service" and Electronic Toll Collection (ETC) pre-transaction system at key toll stations, developed an innovative toll collection model defined by "fully unmanned toll operations, cloud-enabled service delivery and streamlined operation & maintenance (O&M)", and completed tidal flow lane retrofitting projects. These initiatives have fully unlocked the potential of existing lane resources, efectively alleviated peak-hour trafic congestion, and delivered both material improvements in trafic eficiency and tangible environmental benefits. In maintenance management, we widely applied advanced technologies such as artificial intelligence, initially establishing a smart maintenance and intelligent monitoring system and building an integrated "space-air-ground" monitoring network.

This year, we planted and protected greenery, pursuing low-carbon development as a "pathfinder" for road-related low-carbon growth. We thoroughly implemented the national "Dual Carbon" strategy and integrated the philosophy of green development into the entire operation process. We vigorously promoted photovoltaic applications and smart energy management, advanced innovation in fly ash resource utilization research projects, and completed iterative research on integrated smart sewage equipment. We carried out low-noise pavement renovation, innovated collaborative solid waste disposal technologies, and comprehensively improved energy and resource utilization efficiency. We accelerated new energy development and actively conducted scientific and technological innovation and R&D based on project construction. We attached equal importance to engineering protection and ecological restoration, protected biodiversity, improved greening quality in parks, and realized harmonious coexistence between transportation infrastructure and the natural environment.

This year, we attracted and cultivated talents, building a strong "reservoir" of high-quality industrial teams. Adhering to the strategy of strengthening the enterprise with talents, we deepened the reform of the industrial worker team, built platforms for innovation, eficiency improvement, and cultivation of model workers and craftsmen, and focused on developing research teams. Several affiliates were selected into the first batch of "Youth Innovation and Efficiency Studios" of higher-level authorities; many employees won provincial and municipal talent honors and were selected into provincial professional expert databases, further raising the Company's overall professional competence. Focusing on the "urgent needs and dificulties" of employees, we completed all livelihood projects identified at the beginning of the year with high quality, including sewage treatment renovation and AED installation. These efforts laid a solid talent foundation and gathered strong momentum for the Company's high-quality development.

This year, we cared for people's wellbeing and gave back to society, serving as a "standard-bearer" for fulfilling the responsibilities of state-owned enterprises. We thoroughly implemented the arrangements of the National Conference on Commerce regarding "maintaining the resilience and security of industrial and supply chains", built a "digital platform + supply chain" system, further expanded scenarios for new quality productive forces, and promoted coordinated development of the industrial chain. We deepened industry-university-research integration and innovation, injecting strong impetus into industrial upgrading. We systematically built a women workers' work system with characteristics of Xiandai Investment, improved a normalized assistance mechanism, and provided targeted care to employees in need. We deepened rural finance and steadfastly advanced comprehensive rural revitalization. Around major time points, we launched volunteer services such as the "Warm Winter Campaign", serving more than 100,000 drivers and passengers, demonstrating the warmth of a state-owned enterprise in serving people's livelihood.

Those who observe the trends are clear-minded; those who follow the trends are wise. The year 2026 marks the start of the "15th Five-Year Plan". We will continue to be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, stay committed to high-quality development, anchor value creation, and pursue "both internal excellence and external excellence". We will strengthen our core business to improve quality and efficiency, consolidate our foundational strengths, convey corporate value, and strive to build a listed company with prominent core business, modern governance, and core competitiveness. We will unite and strive to write a new chapter of high-quality development for Xiandai Investment.

About Us

Company Profile

Xiandai Investment Co., Ltd. was founded in 1993, principally engaging in the construction, operation and management of expressways. The Company was listed on the Shenzhen Stock Exchange in 1999 (Stock Code: 000900, "Xiandai Investment" for short name). With the mission of "Creating and Sharing a Better Path, Practicing Green Development", the Company has built a "Main Engine with Dual Boosters" development pattern, taking expressway operation and management as the main engine, and financial services and industrial operation as the "dual boosters". Based on expressway assets and pursuing synergistic growth, its business scope covers expressways, banking, futures, environmental protection, new energy, digital-intelligent logistics and asset management among other fields. In 2025, the Company achieved a total operating revenue of 6.48 CNY billion, a total profit of 717 CNY million,and total assets of 59.67 CNY billion ,the weighted average return on equity (ROE) stood at 3.31%.

Honors and Recognitions

Selected as a Typical Case for Development and Utilization of Public Transportation Data

Science and Technology Department of the Ministry of Transport

Grade A rating for information disclosure 2024–2025 Shenzhen Stock Exchange

Best Practice Case of Internal Control of Chinese Listed Companies 2025, Outstanding Sustainable Development Practices of Listed Companies 2025, Outstanding Rural Vitalization Practice Case of Listed Companies 2024 China Association for Public Companies

Second Prize of Science and Technology Award of All-China Environment Federation All-China Environment Federation

Golden Information Disclosure Award 2024 China Securities Journal

Fourth Session of Typical Cases of Grassroots Party Building Innovation in the Transportation Industry China Communications News Co., Ltd., China Communications Press Association

ESG New Benchmark Enterprise Award StockStar

"Outstanding Achievements (Cases) of Party Building Innovation in State-Owned Enterprises" 2025

Enterprise Party Building Committee, China Enterprise Reform and Development Society; Editorial Ofice of State-Owned Enterprises Magazine; Enterprise Observer News

Wind's 2025 China Listed Companies ESG Best Practices Top 100 (Mid-and Small-Cap) Wind

"Excellent Institutional Service Award" of 2025 Global Futures Traders Conference and the 19th National Futures (Options) Live Trading Competition, the 12th Global Derivatives Live Trading Competition 2025 Global Futures Traders Conference and the 19th National Futures (Options) Live Trading Competition, the 12th Global Derivatives Live Trading Competition

2025 in Figures

Governance

Number of female directors 3

Operation

Length of highway landscape greenbelt 206.4 _km

Attendance of board members 100_%

Proportion of Class I and Class II bridges 100_%

Annual audit plan execution rate 100_%

Response rate of investor inquires 100_%

Road excellence rate 100_%

Individuals covered by financial knowledge activities 45,276 _participants

Environmental

Renewable energy consumption 1,550,177.80 _kWh

Total investment in envi ronmental protection 309 _CNY _million

Social

Customer satisfaction percentage 99.7_%

Direct (Scope 1) GHG emissions 7,394.27 tCO e

Investment in road maintenance projects 189 _CNY _million

Participants of employee training 100_%

Indirect (Scope 2) GHG emissions 25,545.49 _tCO2e

Total number of employees 2,354

Number of participants in social welfare activities 1,768

Work safety investment 177 _CNY _million

Beneficiaries of rural vitalization 5,378

ESG Governance

Xiandai Investment is guided by the vision of "Empowering Green Development and Creating Long-Term Value". We continue to optimize our value delivery path, systematically advance the development and implementation of the ESG management system, and integrate the ESG philosophy into all aspects of production and operation. We strive to strengthen the capital market's recognition of the Company's long-term value and become a new benchmark in ESG governance among state-owned listed companies.

Board Statement

The Board of Directors (the Board) is the highest supervisory and decision-making body for the Company's ESG management. It i responsible for formulating ESG strategies, managing risks and opportunities, making decisions for major matters, and approving the Company's annual sustainability report, etc. The Board has established a subordinate Strategy and Sustainability Committee to assist itself in overseeing the implementation of key ESG topics and strategies and to report to the Board on a regular basis.

The Board attaches great importance to ESG performance management. The Company has integrated such key topics as work safety, rural vitalization and environmental compliance into performance and compensation assessments. The Board conducts an nual self-evaluations of its work to review whether ESG targets are fulfilled

ESG Governance Structure

We further continuously improved our ESG management system, designated the Board as the decision-making body for sustain ability initiatives and the responsible unit for the overall planning and promotion of ESG management. The Strategy and Sustain ability Committee is fully responsible for the Company's sustainability strategies and management policies. The management formulates and optimizes ESG management policies and implementation strategies. The Securities Affairs Department, as the leading-ESG department, assists the management in setting specific ESG work plans. Other functional departments, branches and subsidiaries are responsible for executing related tasks. This solid structure ensures closed-loop management to achieve the Com pany's sustainability strategies and objectives

Stakeholder Communication

The Company highly values communication with internal and external stakeholders, established diversified communication chan nels and feedback mechanisms, takes the initiative to listen to and respond to stakeholders' demands, and promotes in-depth and solid progress in social responsibility management.

Stakeholders

Government and regulatory authorities

Expectations for Xiandai Invest ment

Response and measures

● Integrity and law-abiding operation ● Local economic development promotion ● Energy saving and consumption reduction ● Environmental protection

● Policy advocacy ● Qualification review ● Information disclosure ● Suggestions

Employees

● Work safety ● Career development ● Compensation and benefits ● Interests and rights protection ● Employee seminars ● Employee training ● Corporate culture activities ● Social media ● Workers' congress

Customers

● Safe travel ● Service quality ● Information and privacy protection

● Customer complaints ● Satisfaction survey ● Social media

Suppliers and partners ● Procurement in an open, fair and transparent way ● Compliance management ● Contract fulfillment in compliance with laws

● Supplier audit ● Bidding procurement ● Phone and email

Shareholders and investors

● Sustainable profitability ● Regulating governance ● Shareholders' meeting ● Periodic information disclosure ● Investor meeting ● Media publicity

Media and NGOs

Communities and the public ● Environment and social perfor mance ● Road quality and safety

● Harmonious community development ● Local livelihoods improvement ● Public welfare support ● Operation according to laws

● Regular communication and reporting ● Press release ● Media interview

● Volunteer activities ● Job creation ● Charity ● Social media

Materiality Assessment

In accordance with the Self-Regulatory Guidelines No. 17forCompanies Listed on Shenzhen StockExchange - Sustainability Report and domestic and international ESG disclosure standards, the Company identified 21 material topics based on the "double materiality" principle, combined with key stakeholder concerns and industry benchmarks. The management analyzed and prioritized the topics from the two dimensions of "impact materiality" and "financial materiality" to form a materiali ty matrix. After review by the management, the material topics of the year were finally determined.

2025 Xiandai Investment ESG Materiality Matrix

Double materiality matrix of Xiandai Investment

Rooted in Hunan Forging Modern Governance

Governance Section

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Xiandai Investment thoroughly implements the guidelines of the State-owned Assets Supervision and Administration Commission (SASAC) and the China Securities Regulatory Commission (CSRC) on high-quality development of listed companies. The Company continuously improves its corporate governance system, holds fast to the bottom line of sound operation, strengthens the risk and compliance management system, prevents and resolves various risks, upholds business ethics, reinforces Party building leadership, and comprehensively enhances governance efectiveness.

Solidifying Corporate Governance

In strict compliance with the Company Law ofthe People's Republic ofChina, the Securities Law ofthe People's Republic ofChina, the Code ofCorporate Governance for Listed Companies and other laws and regulations, as well as the latest regulatory require ments of the CSRC and the Shenzhen Stock Exchange (SZSE), the Company revised key instruments including the Articles of Association, the Rules of Procedure for the Shareholders' Meeting, and the Rules of Procedure for the Board of Directors. It successfully completed key governance initiatives such as the reform of the Board of Supervisors and the functional optimization of the Audit Committee. Meanwhile, the Company promoted the iteration of governance systems across all subsidiaries and afiliates, building an integrated governance system of "parent company leadership, subsidiary collaboration". A governance structure composed of the Shareholders' Meeting, Board of Directors and Management was established, with a well-defined and standardized operating mech anism that efectively ensures impartiality and scientificity in governance decisions, supporting steady operation and value creation.

Strategy and Sustainability Committee

Audit Committee

Remuneration and Assessment Committee

Nomination Committee

Shareholders' meeting

Board of Directors

General Manager

Headquarters' Functional Departments

Branches and subsidiaries

Board of Supervisors

In accordance with the requirements of the Com an Law ofthe Peo le's Re ub (revised at the end of 2024) and regulatory authorities including the China Securities Regulatory Commission (CSRC) and stock exchanges, the Company completed the reform of the Board of Supervisors in November 2025. The Audit Committee of the Board of Directors exercises the functions and powers of the Board of Supervisors as stipulated in the previous Company Law.

Organization Structure of Xiandai Investment

Board building

The Company consistently emphasizes the professionalism, diversity and inclusiveness of the Board of Directors. In nominating di rectors, it takes into full account gender, age, educational background, professional experience and industry standing, requiring pro found expertise in road operation, legal and risk control, financial management and other fields to underpin sound decision-making. The Board currently comprises 9 directors, including 3 independent directors and 3 female directors

During the reporting period, to further enhance the scientific decision-making of the Board and its special committees, external di rectors gained in-depth insights into operations and the market through thematic meetings and on-site investigations. Leveraging their rich expertise in finance, law and investment, external directors put forward targeted and practical suggestions on optimizing the management system, refining development strategies and strengthening risk prevention, efectively supporting decision-making.

M

Shareholder meetings held

Board meetings held

Specialized committees' meetings

11

Extraordinary meetings of independent directors

The attendance rate of members when participating in Shareholder meet ings, Board meetings and Specialized committees' meetings 100_%

Note: As of the reform of the Board of Supervisors in November 2025, a total of 4 meetings were held

Specialized Training for Directors, Supervisors and Senior Management

On April 1, 2025, the Company held a specialized training session for directors, supervisors and senior management themed "Corporate Governance and Market Value Management". The training covered recent capital market developments, with a focus on the reform changes following the "Nine Guidelines of the State Council", the new Com an Law and related regulatory revisions. It elaborated on strategies and methods of market value management, emphasizing its close alignment with corporate strategy. The training deepened participants' understanding of corporate governance, strengthened their awareness of standardized operation and performance capabilities, and further elevated the Company's governance efectiveness.

Protection of investors' rights and interests

The Company adheres to the fundamental principles of "truthfulness, accuracy, completeness, timeliness and fairness" in informa tion disclosure. It has built a full-process, multi-dimensional internal control system covering pre-review, in-process control and post-event tracking, efectively enhancing transparency and credibility in the capital market, laying a solid foundation for a sound corporate image and investor rights protection.

The Company issued

accordance with regulations

The Company has been awarded the Grade A Information Disclosure Rating by the Shenzhen Stock Exchange (SZSE) for four consecutive years, and successfully won the "Golden Information Disclosure Award" presented by China Securities Journal.

The Company adheres to the core philosophy of "investor-centric" and focuses on the goal of "delivering corporate value and building market consensus". It advances the two parallel lines of investor relations – "value attraction line" and "sentiment stabilit line" – to earnestly fulfill its responsibility of protecting investors' rights and interests, realize eficient interaction and in-depth res onance between the Company and investors, and foster a sound capital market ecosystem.

The Company has built a communication matrix of "mainstream financial media + professional institutional platforms". Following the release of periodic reports and major announcements, it promptly delivers in-depth interpretations to systematically communicate the Company's strategic layout, business highlights and development potential, continuously expanding its investor reach.

Deepen the "going out + bringing in" twoway mechanism: participate in industry exchanges, host institutional research, and accurately interpret the synergistic advantages of "transportation infrastructure + smart logistics + industrial finance". Adopt differentiated communication strategies for diferent investor groups to improve precision.

Engage investors through annual performance briefings, investor meetings and online Q&A.The annual performance briefing retained the "dual-platform live streaming + executive interview videos" format to further narrow the distance with investors.

Strengthening Risk Management

Xiandai Investment has long adhered to the management philosophy of "Promote Compliance, Strengthen Internal Control, Pre vent Risks". It has continuously improved its institutional system to form a hierarchical, categorized, scientific and robust institu tional framework. The Company has innovatively developed a digital system that integrates compliance, internal control and risk management (the trinity), and established a sound risk management and control mechanism. By fully leveraging the synergistic integration of internal control management, audit supervision and legal compliance, the Company has steadily enhanced its capa bilities in risk identification, early warning and response.

Law-abiding and compliance

The Company formulated and implemented the Compliance Management System and Detailed Rules for the Implementation of Compliance Management System, established a Compliance Committee to spearhead the compliance management , and developed lists for compliance review and due compliance exemption to build three lines of defense for compliance. Compliance management is implement ed to the frontline of business and integrated into all aspects of operation and man agement. In 2025, the annual compliance management report was compiled and submitted to the Board for deliberation, ensuring full oversight by the governance layer over risk control and system implementation.

Compliance training was delivered to management at all levels, key positions and le gal personnel, and online courses were rolled out across all business units to achieve full coverage. Compliance training is also included in onboarding programs, fostering a strong compliance culture and self-discipline.

Internal control and audit supervision

The Company has formulated and complied with institutional documents including the Internal Control Management Measures and Detailed Rules for the Implementation of Internal Control Assessment. It has organized all subsidiaries and departments to complete internal control assessments, compiled lists of internal control deficiencies and internal control assessment reports formulated rectification plans and supervised the closure of rectification items one by one. These eforts have efectively improved the Company's internal control processes and promoted the internal control system to upgrade from "formal compliance" to "sub stantive efectiveness".

Centered on budget implementation, and supported by risk management, economic responsibility, post-investment evaluation and other work, the Company carries out integrated combined audits. It highlights the whole-process review system for budge implementation, the key points of quality control in each link, and the hierarchical responsibility system for audit quality. This ap proach not only clarifies the boundaries of responsibilities but also strengthens accountability, with all nodes working in the same direction to eficiently advance audit work and jointly ensure the quality of audit results.

The Company won the "Best Practice Case of Internal Control"

On September 22, 2025, under the guidance of the Department of Accounting of the Ministry of Finance of the People's Republic of China and the Department of Accounting of the China Securities Regulatory Commission, the China Association for Public Companies announced the results of the selection of best practice cases of internal control. The Company's case I ti D i D l stood out from 270 listed companies nationwide and wa

successfully selected as a "Best Practice Case of Internal Control", being showcased as one of the 18 best cases. This fully demonstrates the outstanding achievements of the Company's innovative construction of the internal control system in recent years.

Risk management

The Company has established the Comprehensive Risk Management System, RiskAssessment and Management Implementation , . It has established a comprehensive risk management organization system composed of the Company's Board of Directors, Party Committee, management team, responsible departments, audit department, various functional departments, and secondary and tertiary subsidiaries. A "three lines of defense" structure has been formed, consisting of business departments, risk control departments, and audit supervision departments, to jointly manage and control operational risks. All secondary subsidiaries under the Company have established their own com rehensive risk mans based on actual conditions. All functional departments and subsidiaries of the Company are responsible for the specific risk management work of their own units, and accept the organization, coordination and guidance of the Enterprise Man agement Department.

Business departments and their subordinate enterprises are the specific implementing bodies for risk management and assessment. Their responsibilities primarily involve the implementation of relevant policies and procedures, the solving of issues within risk management operations, and the regular identification and self-assessment of risks.

The Company's Management and the Enterprise Management Department, as the leading organizing departments for risk assessment, are responsible for organizing and guiding the relevant work of the Company's departments and subsidiaries, supervising and inspecting the implementation of risk assessments, and submitting risk assessment and management reports to the Company's management.

The Audit Committee and external auditors provide risk management tools and conduct risk management supervision and evaluation.

Three Lines of Defense for the Company's Risk Management

The Company continuously identifies and assesses various risks covering strategic, financial, market, operational and legal as pects. In view of potential risks in business processes, it classifies them into three levels: "General, Significant and Critical".

The Company holds 2025 training on legal, risk control, internal control and compliance

The "2025 Training on Legal, Risk Control, Internal Control and Compliance" was closely aligned with the requirements for deepening the reform and improvement of state-owned enterprises. With the core goal of "accelerating the building of a systematic and integrated 'big risk control' management system", the training integrated policy requirements, business practice and concept development, providing targeted solutions to enterprise management and control challenges. Taking this training as an opportunity, the Company optimized its compliance management model based on the experience of building the "Best Practice Case of Internal Control", promoted in-depth coordination of risk prevention and control with strategic decision-making and business operation, and supported the high-quality development of the Company.

Upholding Business Ethics

Xiandai Investment adheres to the business philosophy of integrity and trustworthiness, and continuously improves its governance systems against corruption, unfair competition and money laundering. By improving institutional norms, strengthening discipline inspection and supervision, opening up reporting channels, and deepening compliance training, the Company strictly prohibits any activities that damage its reputation for integrity, builds a strong line of defense against corruption, and consolidates the foun dation for sustainable development with open and transparent business practices.

Anti-bribery and anti-corruption

The Company strictly implements the Im lementation Measures forthe Res onsibilit ofPart Governance with "Five Res onsibil . It has established a Coordination Group for Party Conduct, Integrity and Anti-corruption Work, forming a responsibility closed loop of "knowing responsibilities, fulfilling responsibilities and serious accountability", and building a respon sibility system featuring "overall leadership by the Party Committee, leading responsibility by the Secretary, detailed responsibilit by team members, solid implementation by functional departments and strict supervision by discipline inspection institutions". By setting up grassroots integrity monitoring points, implementing the "One Company, One Checklist" supervision model, and ap pointing integrity supervisors, the Company has extended supervision to the grassroots and front lines, and fostered sound coordi nation among various types of supervision.

The Company has formulated and issued documents including the Integrity Risk Prevention Manual of Xiandai Investment Co., Ltd., Typical Cases of Violating the Eight-point Regulation of the Central Committee and the Action Task List for the "Three Modernizations" Construction Year of the Company. It has held warning education meetings, conducted collective integrity talks, signed Inte - , and built characteristic integrity culture positions, continuously expanding the influence of the "Clean Xiandai" initiative. All branches and subsidiaries regularly release integrity updates, cartoons and messages through the Company's oficial website, WeChat Oficial Account and internal journals, fostering a strong atmosphere of integrity and building a solid ideological line of defense against corruption for cadres and employees.

M

All branches and subsidiaries organized

36 _warning _education _sessions

Covered more than

6,000 participants

The Company shares characteristic experience at Hunan listed companies integrity & self-discipline meeting

On August 15, 2025, the first meeting of the Integrity and Self-Discipline Committee of Hunan Listed Companies Association in 202 was held in Changsha. As the chairing unit, the Company took the initiative to share its innovative practices in integrity and compliance construction. It focused on the "Five Responsibilities Coordination" accountability mechanism, the promotion path of th "Six Integrity" Project, the precise management model of "One Company, One Checklist", and the "Two-Way Supervision" system, demonstrating the Company's active exploration in building a sound integrity management system. Meanwhile, the Company actively ofered suggestions and put forward constructive opinions on improving industry norms and exploring a risk information sharing mechanism (under the premise of compliance). The sharing and proposals received positive responses and recognitio from the representatives present.

Huaihua Branch builds a featured integrity culture promotion position: "Chasing Light and Sticking to Integrity"

The Company formulated and issued the Measures for Han-, continuously improving the reporting management mechanism and opening up internal and external supervision channels. Stakeholders may truthfully report violations of rules and disciplines through the reporting mailbox, special hotline and public email. All reported clues received are strictly verified and handled in accordance with prescribed procedures, and relevant personnel are held accountable in accordance with regulations, disciplines and laws. Meanwhile, the Company earnestly protects the legitimate rights and interests of whistleblowers in accordance with the Whistleblower Protection System.

Reporting & complaint channels

Email: xdtzjjb@163.com

Reporting hotline: 0731-88749890

M

100_%

Integrity & anti-corruption training coverage

2,354

Participants in integrity & anti-corruption training

Anti-money laundering

The Company's anti-money laundering (AML) work is mainly carried out by two subsidiaries: Dayou Futures and Yueyang Baling Rural Commercial Bank. The AML Center of Dayou Futures compiled and issued the internal journal Anti-Money Laun-, produced and promoted its first promotional video through multiple channels, and popularized anti-fraud knowledge on campuses and in communities. Meanwhile, it optimized the suspicious transaction model; in 2025, the number of reported suspicious transactions decreased by 66.67% year-on-year, and automatic synchronization of system risk levels was realized. Yueyang Baling RCB achieved outstanding results in anti-money laundering and anti-telecom fraud eforts, winning a full score in the annual assessment of the provincial rural credit system, and the accuracy of its suspicious transaction reports was afirmed by regulators.

M

22 _Anti-money _laundering sessions organized

1,751 attendances of employees

Focus on new regulatory rules to build a strong defense against money laundering risks – Dayou Futures holds AML special training

On December 19, 2025, Dayou Futures launched a special training on Customer Due Diligence (CDD) and Suspicious Transaction Reporting. Closely aligned with regulatory policy guidelines, the training provided an in-depth interpretation of the Measures fo Customer Due Diligence, Customer Identity Information and Transaction Record Keeping for Financial Institutions and the revised It strengthened the whole staf's awe of compliant operation and established the consensus of "Joint ly Resisting Money Laundering Risks". The training optimized the due diligence process and information sharing tools, promoted the safe and eficient flow of necessary customer background information within the compliance framework, and achieved the dual goals of precise risk prevention and protection of legitimate rights and interests of compliant customers. It efectively improved the compliance operation capabilities of frontline staf, strengthened the whole staf's awareness of AML responsibilities, built a solid line of defense for compliant operation, and supported the steady development of the Company.

Fair competition

The Company strictly abides by the Anti-Mono ol Law ofthe Peo le's Re ublic ofChina, the Anti-Unfair Com etition Law ofthe and other relevant laws and regulations. It updated the , adheres to the principles of honest operation and fair competition, and strictly prohibits unfair competition and monopolistic behaviors such as commercia bribery and false publicity. The Company continuously standardizes procurement management, enhances the transparency and traceability of procurement processes, is committed to building a fair, transparent and healthy business environment, and steadily improves its compliant operation and management capabilities. No delayed payment to suppliers occurred in 2025

Upholding Party Leadership

Xiandai Investment is committed to "striving for excellence and taking the core path of integrated Party-building and business de velopment", using high-quality Party building to lead high-quality corporate development. Throughout the year, our Party-building work maintained clear direction, an optimized system, dynamic mechanisms and a distinctive brand, providing strong politica underpinning and robust internal impetus for the Company to pursue progress while maintaining stability, improving quality and boosting eficiency amid a complex environment

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Strengthening foundations through learning, thinking and practice

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Company fully implemented the spirit of the 20th National Congress o the Communist Party of China and the 2nd, 3rd and 4th plenary sessions of the 20th Central Committee. We thoroughly put into practice General Secretary Xi Jinping's important expositions on the reform, development and Party building of state-owned enterprises, strictly followed the "First Agenda" system, and deeply studied the major decisions and plans of the Party Centra Committee on SOE reform, building China into a strong transportation country and developing new quality productive forces. Centered on General Secretary Xi Jinping's important instructions and directives on scientific and technological innovation, safe development, green and low-carbon growth, and the joint construction o the "Belt and Road Initiative", we earnestly reflected the "Two Upholds" in concrete actions and daily work.

Theoretical Learning Center Group held throughout the year

24_"First _Agenda" _sessions

Party organization secretaries

366 _Micro-Party _lectures _delivered _by _Party _members

883 _Party _members _and _activists _who completed and obtained certificates for special courses via SASAC E-Learning

Deep integration to boost development

The Company firmly embraced the philosophy of "focusing on development while strengthening Party building, and strengthening Party building to promote development", fully implemented the "Party Building +" working model, and advanced the integrated evaluation of "Party Building + Value Creation". We promoted deep integration of Party building with scientific and technologica innovation, giving full play to the role of Party branches and Party members in key projects including smart highways, digital-intel ligent logistics, new energy and environmental protection research. Organizational strengths were directly channeled to frontline taskforces, and Party building was deeply integrated into all aspects of production and operation.

Empowering new energy through brand activities

The Company actively built the Party building brand "Integration for Long-term Development" and issued the C t C lt , clarifying brand connotation, logo system and practice paths, forming a themed, hierarchical and experiential "education matrix". Based on their business characteristics, grassroots units created sub-brands such as "Keep Innovation, Red Golden Phoe nix", "Chasing Light", "Great Integration Tree" and "Five Teams in One", enabling Party building brands to take root in business and empower development.

Honors

● Huaihua Branch: "Enhancing the Political and Organizational Functions of Party Organizations and Integrating Party Building with Business" won Outstanding Achievements (Case) of Party Building Innovation of State-owned Enterprises 2025.

● Dayou Futures' "Great Integration Tree" and Huaihua Branch's "Chasing Light" Party building brands were both selected as the Fourth Session of Typical Cases of Grassroots Party Building Innovation in the Transportation Industry

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Warmth Along Hunan Highways Forging Modern Governance

Xiandai Investment has always upheld a "customer-centric" service philosophy. We continuously upgraded service quality, optimized service processes and innovated service models, providing every customer with safe, convenient and warm travel experiences with care and dedication.

Inspiring Technological Innovation

Xiandai Investment pursues innovation-driven development, with digital transformation at its core. We deepened technologica innovation and application in smart highways, smart maintenance and other fields, improved the intellectual property protection system, and strengthened cybersecurity, injecting sustained momentum into building an intelligent and eficient modern transpor tation service system.

Intelligent construction of high-quality projects

Driven by digital transformation, the Company built an intelligent management platform, introduced an AI intelligent inspection system and established a bridge health monitoring system, realizing real-time collection and analysis of operation and mainte nance data. This shifted highway maintenance from "passive treatment" to "proactive prevention", comprehensively improving operational eficiency and service quality.

Huaihua Branch: Building an intelligent operation and maintenance system

Huaihua Branch established a three-in-one intelligent operation and maintenance system: "intelligent equipment + data platform + refined management". It launched the province's first multi-functional "Management Cabin"; deployed 7 sets of lane intelligent robots, with vehicle-type recognition accuracy exceeding 99% and exit toll efficiency increased by 40%; introduced AI intelligent inspection system to eficiently identify potholes, foreign objects and other road anomalies; applied bridge health monitoring system for real-time data collection and dynamic status control; upgraded unmanned aerial vehicles (UAVs) to achieve precise positioning of defects on slopes and bridge bearings; promoted systematic, digital and automated inspection, greatly improving intelligent operation and maintenance capabilities.

In 2025, Changsha Branch implemented the "Hunan Provincial Trunk Corridor Active Control Demonstration Project" on the Changsha–Tanjiang Expressway. Using big data, artificial intelligence and cloud computing, it integrated institutional, personnel and regional resources, merging Datunying Toll Station, Huaminglou Toll Station, Jinshi Toll Station and Changsha Maintenance & Road Assets Safety Management Ofice into the Huaminglou Operation and Management Center — the largest of its kind in Hunan Province. Through the intelligent operation platform, it achieved deep integration of tolling, electromechanical, audit, maintenance and road assets businesses, enhancing intensive management and multi-skilling. It provided an innovative model for intensive operation and management of expressways.

Safeguarding Safety Bottom Line

The Company has established a sound organizational structure for workplace safety, set up a Work Safety Committee, clarified workplace safety responsibilities at all levels, and built a responsibility network that covers all sectors horizontally and all levels vertically. It continuously advances workplace safety standardization, improves the dual prevention mechanism, strengthens safe ty performance assessment, and forms a collaborative safety management pattern, providing solid organizational and institutiona support for workplace safety

Changsha Branch: Building the Huaminglou Smart Operation and Management Center

Improving the safety management and governance system

Xiandai Investment thoroughly implements General Secretary Xi Jinping's important expositions on workplace safety, strictly enforces the Work Safety Law ofthe People's Republic ofChina and other laws and regulations, continuously advances workplace safety standardization, improves the safety management system, strengthens safety risk control, deepens hazard investigation and remediation, and enhances emergency response capabilities. These eforts ensure a steadily improving workplace safety situation, providing solid safety support for the Company's high-quality development

In accordance with the requirements of "one post, two responsibilities" and "three managements, three musts", the Company signs the WorkSafety Target Responsibility Letter at all levels, strictly implements the workplace safety assessment mechanism, combines process and result evaluation, and applies a "one-vote veto" system. Through monthly evaluations, quarterly bulletins and annual accountability, the initiative and consciousness of all staff in fulfilling duties have been efectively enhanced. Company leaders lead teams to conduct frontline safety inspections every quarter, focusing on the performance of duties and the frequency and quality of hazard identification. In 2025, the Company passed the assessment with a score of 952 and obtained the First-Class Certificate of Work Safety Standardization for Expressway Operation.

Strengthening risk prevention and control in key areas

The Company implements full-chain risk prevention and control in key areas including road maintenance operations, rescue and obstacle clearing, and extreme weather response. Through standardized operation management, intelligent monitoring and early warning, and multi-department collaboration, we have built a closed-loop management system covering prevention in advance, response during the event, and improvement after the event, efectively preventing and resolving major safety risks and ensuring safe and stable road operation.

Strengthening safety management of road rescue and obstacle clearing

The Company has established a sound safety management system for road rescue and obstacle clearing, improved emergency plans and standard operating procedures to ensure rapid response, standardized disposal, safety and eficiency. Volunteers of Changsha Branch found a large truck stuck in an inspection pit at Yuhua Toll Station, immediately activated the emergency plan, and helped the vehicle get out of trouble in only 30 minutes, ensuring smooth trafic without accidents. Sanjiang Management Office of Huaihua Branch found wild animals interfering with trafic in Xuefeng Tunnel in the early morning, quickly activated the linkage mechanism, guided them to a safe area in time, eliminated hidden dangers and avoided accidents.

Improving the emergency response mechanism for extreme weather

The Company has improved the monitoring and early warning system for extreme weather, formulated graded response plans, and strengthened the reserve of emergency supplies and team building. Changsha Branch formulated a special emergency plan for low-temperature, rain, snow and freezing disasters, inspected key sections in advance and installed remote thermometers to achieve accurate early warning and rapid response. In 2025, it launched 2 low-temperature responses and 3 flood control responses, with no congestion or secondary accidents. Huaihua Branch launched 3 flood control responses and 2 low-temperature, rain, snow and freezing responses in 2025, effectively ensuring road safety and smoothness under severe weather.

Deepening safety culture and capacity building

The Company firmly upholds the concept of safe development and takes safety culture construction as the fundamental way t improve safety management. By building a normalized safety training system, carrying out emergency drills and safety-themed ac tivities, and establishing an incentive mechanism for hazard reporting, the Company promotes safety awareness to be internalized in mind and externalized in action, creates a strong atmosphere of "everyone talks about safety, everyone can respond to emer gencies", and continuously improves the safety literacy and emergency response capabilities of all staf.

Improving the safety training system to enhance the competency of all staf

Changsha Branch

Compiled training materials and competition question banks for tunnel fire posts, built a parttime fire team, and internalized safety awareness through joint training to improve the practical ability of emergency rescue.

Huaihua Branch

Carried out 174 safety training sessions, 224 safety inspections, and identified 339 hazards; compiled safety manuals and added 29 intelligent monitoring points to build a "smart fire protection" system, enhancing emergency capabilities and safety culture.

Carrying out diversified themed activities to cultivate safety culture

Taking "Work Safety Month", "Fire Safety Promotion Month" and other activities as carriers, the Company extensively carried out safety knowledge competitions, emergency drills, hazard investigations and other themed activities to make safety culture deeply rooted in the hearts of the people.

Changsha Branch

17 emergency drills of various types were held throughout the year, with 480 participants, integrating Party member commandos and volunteer services to strengthen the practical implementation of safety awareness. Tanhengxi Management Center carried out a joint emergency rescue drill for traffic injuries with multiple units; Huanghua Toll Station organized emergency drills for on-site tolling and vault robbery prevention, testing the feasibility of emergency plans through actual combat drills.

Huaihua Branch

In view of seasonal characteristics and weak links in workplace safety, the Company organized tabletop exercises such as "Flood Season Emergency Tabletop Drill", "Vehicle Rescue Review — Tabletop Drill", and "Emergency Response to Spontaneous Combustion of New Energy Vehicles", comprehensively simulating the emergency response process under sudden situations to improve coordination between departments.

Intellectual property protection

Guided by the Measures for the Administration ofScientific and Technological Innovation, the Company has established and im proved its intellectual property protection system, and strengthened the transformation and application of technological innovation achievements. By improving management mechanisms for patent application, trademark registration and copyright registra tion, the Company has enhanced the creation, application, protection and management of intellectual property rights, providing strong support for the sustainable innovative development of the enterprise

Dayou Futures awarded national invention patent

The "Futures Knowledge Base System Based on Big Data Automated Tagging" independently developed by Dayou Futures ha been granted a National Invention Patent Certificate. This system integrates data collection, extraction and automated tagging, builds an index between text data and tags, and realizes the accumulation and inheritance of knowledge assets. Employees can quickly obtain required information, which greatly improves the convenience of information retrieval, efectively enhances interna knowledge management and team collaboration eficiency, and injects new momentum into the Company's scientific and techno logical innovation.

Cybersecurity maintenance

The Company strictly abides by the C bersecurit Law of and relevant laws and regulations, formulated the Information WorkManagementSysand supporting management measures, established a Leading Group for Cybersecurity Work, and implemented cybersecurity responsibilities. Through diversified measures including equipment upgrading, infrastructure renovation, daily operation and maintenance inspection, access control and incident handling, the Company has continuously strengthened its cybersecurity barrier to ensure the safe and stable operation of information systems.

The Company fulfills cybersecurity responsibilities to strengthen road network operation support

The Company formulated the Information Work Management System and four supporting measures covering information system management, computer room management and cybersecurity management. It established a Leading Group for Cybersecurity Work and implemented cybersecurity responsibilities layer by layer. In 2025, the Company conducted quarterly inspections on cybersecurity situation analysis, network vulnerability scanning, antivirus software verification and signature database checking, continuously strengthening the security support for road network operation. The Company carried out and participated in 4 cyber attack-defense drills and organized 1 company-wide cybersecurity training throughout the year, continuously improving cyberse curity protection capabilities and efectively safeguarding the rights and interests of the Company and its customers.

Dayou Futures builds a multi-level cybersecurity defense system

Dayou Futures comprehensively strengthened cybersecurity construction in 2025, deploying terminal access & desktop manage ment systems, zero-trust access control systems and Internet behavior management systems to builda multi-level, all-round cyber security defense system. The terminal access system verifies the compliance of terminal devices; the zero-trust system reinforces identity authentication and permission control; the behavior management system standardizes network usage. A closed-loop pro tection mechanism is formed from terminal access to access control, and from data protection to behavior management, ensuring data privacy and business continuity while efectively protecting the rights and interests of the Company and its customers.

Delivering Premium Services

Xiandai Investment has always adhered to a customer-centric philosophy. Focusing on smooth and safe highway operation, convenient and thoughtful financial services, and high-quality services for various engineering industries, the Company continuously optimizes service processes, innovates service models, upgrades service standards, enhances customers' sense of gain and satis faction, elevates service quality to a higher level, and creates greater value for customers.

Smooth, safe, comfortable and beautiful travel

The Company has developed optical-storage integrated monitoring equipment, built an intelligent management system for "truck-free/free vehicles", deployed mul ti-functional management cabins and lane robots, and innovated the "Five Fixations and Three Inspections + Three-dimensional Patrol" model. It has built an intelligent operation and maintenance system that boosts passage efficiency by 20%–40%. Meanwhile, the Company ensures smooth traffic through intelligent traffic scheduling, multi-party joint drills and real-time traffic prompts. It provides considerate services at toll stations and service areas to improve the travel experience for drivers and passengers, and builds a safe, convenient and warm travel environment in an all-round way, significantly optimizing public travel experience.

Honors

● The case Reform and Innovative Practice of Intensive Operation and Management of Expressways was selected as a Typical Case of National Expressway Innovation and Development 202

The Company fulfills cybersecurity responsibilities to strengthen road network opera tion support

Responding to the growing adoption of new energy vehicles such as LNG-powered heavy trucks, Modern Assets' Zhaoshan Service Area has added new LNG refueling lanes and equip ment on the basis of the existing LNG station. The refueling lanes have been expanded from one to two, and LNG dispens ers upgraded from single-nozzle to double-nozzle units. Daily refueling capacity has jumped from 20 tons to 80 tons, mark ing the province's first leapfrog upgrade in vehicle clean ener gy supply. The move contributes to the green transformation of the province's transportation sector.

Heartfelt services guard a pleasant journey for drivers and passengers

Adhering to the "driver-and-passenger-centric" philosophy, the Company provides diversified considerate services at toll stations and service areas. Party member commandos and young volunteers are organized to offer free tea, medicine, rest areas, route guidance and other services to solve travel dificulties for drivers and passengers. A total of 196 charging piles have been installed at service areas. New fast-charging piles have been built and charging infrastructure has been densified to improve charging support during peak traffic hours and upgrade the travel experience.

Eficient and convenient financial services

Leveraging the advantages of "industry-finance integration", the Company has built a comprehensive financial service system cov ering the entire industrial chain based on diversified financial licenses including futures, financial leasing, commercial factoring, guarantee and micro-credit. By innovating financial products, optimizing service processes and strengthening risk management, the Company provides convenient and eficient financing support and risk management tools for real enterprises, helping industri al chain enterprises reduce costs, improve eficiency and achieve steady development.

Innovative financial models solve corporate financing challenges

Modern Wealth adopts a closed-loop model of "government guidance + market-oriented operation + risk sharing", and establishes bank-guarantee cooperation mechanisms with Hengfeng Bank, Zheshang Bank and other institutions to provide financing guaran tee services for state-owned enterprises and small and micro enterprises, efectively lowering their financing thresholds and costs. A "Secretary-in-Charge of Projects" mechanism has been established. Relying on the full expressway industrial chain, the Company integrates four licenses (financial leasing, commercial factoring, guarantee and micro-credit) to carry out supply chain finance ser vices and promote business transformation and upgrading.

Futures tools empower industrial chain risk management

Dayou Futures has innovated the "pick-up first, fix price later" basis trade model to serve new energy industrial chain clients. Clients can take physical delivery of lithium carbonate for production first, and lock in the futures benchmark price within the agreed pricing period, efectively reducing procurement costs. It also supports "price stabilization and supply guarantee" for expressway construction. Adopting a batch position-building strategy for rebar demand, it completed hedging of nearly 10,000 tons, successfully hedging against price fluctuation risks and achieving the dual goals of "price stabilization" and "supply guarantee".

Expanding diversified services

Relying on the resource advantages of expressways, the Company actively expands diversified service sectors such as the energy engineering industry and road-derived economy projects, promoting the integrated development of the "Transportation +" industries. By revitalizing idle resources along expressways, developing distributed photovoltaic projects and building a smart logistics data platform, the Company has created an industrial service ecosystem of "industry-finance integration and diversified collaboration", realizing efficient resource utilization and value appreciation, and delivering diversified service experiences to customers.

Data integration empowers logistics cost reduction and eficiency improvement

The "GSHT" Platform was selected as one of the first "Typical Cases for the Development and Utilization of National Public Transportation Data". Based on the "1 + 3 + N" technical architecture and innovative "data credit enhancement" technology, the Company launched "Logistics e-Loan" with Industrial and Commercial Bank of China, providing credit to logistics enterprises without traditional collateral to solve industry financing dificulties. It rolled out the "post-paid toll service" technical solution, which eases peak congestion at toll stations through the digital mechanism of "clearance - advance payment - online supplementary payment". It also launched "Huitong Worry-Free" service area liability insurance, realizing "zero errands" via online claims settlement. Data element integration drives cost reduction and eficiency improvement in transportation and logistics.

Transportation-energy integration forges a model for green transformation

Two cases of Modern New Energy, namely Buildin a Full-Scenario Development Model For in the "Hunan Experience" forTrans portation-Energy Integration and Practice and Innovation of the Distributed Photovoltaic Project on the Yichang North Expressway were successfully selected as 2025 Typical Cases of Transportation and Energy Integration Development

Protecting Hunan's Landscape Honoring Xiandai's Low-Carbon Commitmen

Environmental Section

Green development is the path to the future, and ecological protection is the foundation for sustainable development. Xiandai Investment is committed to being a practitioner and guardian of green development. We place environmental management high on our agenda, actively address the challenges of climate change, comprehensively promote energy and resource conservation, and practice green and low-carbon operations, making tangible contributions to the construction of a Beautiful Hunan.

Response to climate change

Addressing climate change has become a global consensus. Xiandai Investment has a profound understanding of the challenges and risks posed by climate change and actively explores scientific and efective response solutions. We strictly follow the recom mendations of the Task Force on Climate-related Financial Disclosures (TCFD), and systematically advance climate response and management from the dimensions of governance, strategy, risk management, indicators and targets to ensure the steady operation of the business.

Governance

On the basis of the ESG governance structure, the Company further clarifies environment-related management responsibilities. The Strategy and Sustainability Committee plays a key leading role in addressing climate change, and collaborates with the man agement team and various departments to build a governance system with clear responsibilities and eficient operation.

Strategy and Sustainability Committee

● We closely track the dynamic changes of climate-related policies and regulations at home and abroad, and conduct in-depth research on their potential impacts on core businesses such as expressway operation and financial investment.

● Combined with industry development trends and the Company's actual situation, we for mulate a forward-looking climate change strategic plan, clarifying the long-term goals and phased tasks of the Company in low-carbon development and climate change adaptation.

● We refine the climate change strategy into specific implementation plans and promote their efective implementation within the Company.

● We coordinate the allocation of resources among departments to ensure the rational deploy ment of human, material and financial resources required for climate change response.

● We organize the formulation and improvement of the Company's climate change-related management systems and procedures, clarifying the responsibilities and working specifica tions of each department in addressing climate change.

● We set up a Leading Group for Environmental Protection to implement all work arrangements for environmental protection management.

Departments/branches and subsidiaries

● Fully consider climate change factors in the project planning and construction stage.

● Strengthen energy management in service areas and other operation sites, adopt energy-sav ing equipment and technologies to reduce operation energy consumption.

● Implement various plans and programs for addressing climate change.

Strategy

The Company incorporates the identification, assessment and management of climate-related risks into the overall enterprise risk management process. Focusing on the two types of risk factors brought by climate change—physical risks and transition risks—the Company formulates strategies, tactics and methods to address climate risks.

Carbon emission reduction strategy

In response to the national "Dual Carbon" goals, the Company gradually reduces the carbon emission intensity in its operation by optimizing business processes, promoting the application of renewable energy, and improving energy utilization eficiency. In expressway operation, we vigorously promote intelligent transportation systems, optimize traffic flow, and reduce vehicle idling and unnecessary energy consumption. In office premises, we give priority to the use of solar energy to reduce reliance on traditional fossil fuels.

Extreme weather response strategy

In response to the extreme weather risks caused by climate change, the Company has formulat ed a comprehensive emergency plan covering extreme weather such as rainstorms, freezing rain, typhoons and high temperatures. Through close cooperation with meteorological depart ments, strengthening the disaster resistance ca pacity of infrastructure construction, optimizing the emergency response mechanism, enhanc ing road patrol and hazard investigation, estab lishing a cross-departmental collaboration and linkage mechanism, and carrying out employee emergency training and drills, we ensure the stable operation of the business under extreme weather conditions.

List of Climate Risks and Opportunities

Risk management

Regarding climate risk as one of the key risk fields for management, the Company establishes a whole-process climate change risk management mechanism of "Identification - Assessment - Response" to systematically and scientifically address climate risks.

Risk identification

● We establish a cross-departmental risk identification team to comprehensively assess climate risks. By using various approaches, potential risk points are identified based on the distribution of existing facilities and our disaster resilience capabilities.

Risk assessment

● We employ a combination of qualitative and quantitative assessment approaches to rate risks based on their likelihood of occurrence and impact. We assess the probability of occurrence, potential economic losses, casualties, and business interruption duration to determine risk levels.

Risk response

● We formulate diferentiated response strategies for various types and levels of climate risks. For physical risks, we enhance infrastructure protection and strengthen emergency management capabilities. For transition risks, we adopt proactive strategies, intensifying policy research and market monitoring.

Moreover, we further specify incident management responsibilities by taking actions to prevent and respond to environmenta emergencies and formulating the Emergency Plan for Environmental Incidents, which clarifies the duties of personnel at all levels in incident handling. In such way, employees' emergency response capabilities for environmental protection are enhanced.

Metrics and targets

The Company actively responds to the national "Dual Carbon" strategic goals, establishes a scientific and comprehensive climate-related indicator monitoring and management system, continuously tracks key indicator data, and sets clear and measurable annual targets for diferent indicators, which serve as an important basis for evaluating the efectiveness of the Company's climate change response eforts.

Note: During the reporting period, the Company increased the mileage of entrusted managed road sections, which led to a substantial growth in pur chased electricity consumption, and in turn drove a notable increase in Scope 2 greenhouse gas (GHG) emissions.

Deepening Green Operations

Xiandai Investment has always taken deepening green operations as an important strategy for sustainable development. Respond ing to the national call for green transportation, the Company attaches great importance to energy and resource management develops a circular economy, and is committed to building an eficient environmental management system to achieve resource conservation and environmental friendliness.

Improving the management system

The Company strictly abides by the Environmental Protection Law ofthe People's Republic ofChina, and has formulated internal documents such as the Ecological Environmental Protection ManagementSystem and the Measures for Environmental Protection . It has continuously strengthened the standardization of the envi ronmental management system and passed the GB/T24001-2016/ISO14001:2015 environmental management system certification with a steady improvement in standardized management

The Company insists on integrating environmental protection management into the whole process of project construction, and sets relevant environmental protection standards and measures for the pre-, mid- and post-project phases.

Pre-project phase

● Professional environmental assessment tools are used to fully identify potential environmental impact factors of the project, and strict environmental goals and feasible implementation plans are determined in accordance with relevant laws and regulations.

Mid-project phase

● A Leading Group for Environmental Protection is established, and construction contractors are strictly required to carry out construction in accordance with the environmental management plan. The control of pollutants such as dust, noise and wastewater during construction is strengthened, and environmental monitoring and pollution source control are enhanced.

Post-project phase

● Upon project completion, all afiliates shall promptly complete the completion acceptance procedures for environmental protection, and commission environmental protection facilities before the project is put into use.

Energy utilization

The Company fully integrates energy use standards and optimized management into the whole process of operation and development. Through technological innovation and equipment upgrading, the Company efectively reduces energy consumption, in creases the proportion of clean energy, and improves energy utilization eficiency.

2025 photovoltaic industry development achievements

The Company actively carries out energy consumption safety projects such as water supply network emergency repair and highand low-voltage equipment rectification to ensure the stable supply of energy. Meanwhile, it increases the application of new ma terials, technologies and processes, focuses on the circular utilization of resources, reduces environmental pollution and achieves remarkable economic benefits.

Modern New Energy's photovoltaic intelligent management platform put into operation

Modern New Energy's photovoltaic intelligent management platform has been put into use, realizing functions such as powe station capacity data access, fault analysis and disposal, and automatic electricity fee data extraction and generation. It achieve accurate data collection and refined management of power generation and electricity fees of power stations.

Modern Environment integrates clean energy into project construction and operation, accelerating green and intelligent transformation

The Taojiang County Urban Flood Control Project PPP (Public-Private Partnership) project constructed and operated by Modern Environment's Taojiang Subsidiary extensively adopts solar street lamps in dyke flood control facilities. It uses renewable energy for lighting, reduces reliance on the traditional power grid, lowers operation costs, and enhances the sustainability and environmental friendliness of flood control work. This measure, combined with intelligent dispatching technology, jointly promotes the intelligent and green development of the project.

Construction and management of distributed photovoltaic power plant of Huaihua Branch

Huaihua Branch, in cooperation with Modern New Energy, launched the construction and management project of a distribut ed photovoltaic power plant. Photovoltaic power generation equipment is deployed by making full use of the idle space in the branch's compound, with a total installed capacity of 621 kW. The "self-generation and self-use" model is adopted, and the gener ated power is mainly used for daily ofice and operation power supply of the branch. Since its commissioning, the project has op erated stably with remarkable energy-saving and carbon-reduction efects. As of December 2025, it has provided a total of 840,00 kWh of green electricity. It is estimated that this is equivalent to saving about 336 tons of standard coal and reducing about 83 tons of carbon dioxide emissions, providing a feasible path for low-carbon and economical enterprise operation.

Water resource utilization

The Company implements the concept of green water use. All business water is supplied by the municipal water supply network, and natural water intake is prohibited to protect water resources to the maximum extent. Domestic sewage is used for station greening irrigation and road flushing after pretreatment, realizing the circular utilization of water resources. Meanwhile, the Com pany strengthens the refined management of water equipment, regularly conducts water consumption measurement and dat analysis, timely detects and repairs equipment leakage, and improves water use eficiency

Pollutant discharge

The Company strictly controls pollutant discharge during operation, identifies and classifies the types of pollution sources that may be generated during construction, and formulates corresponding regulatory measures.

The operation and maintenance of sewage treatment facilities, water quality monitoring, and reclaimed water reuse are included in the daily work assessment system of the Maintenance Department. The post responsibilities and work standards are clarified, and a long-term management mechanism of "daily inspection + quarterly testing + annual evaluation" is established to ensure the long-term efectiveness of the project and realize the sustainable operation of wastewater treatment and resource utilization

● Two sets of integrated treatment equipment with a capacity of 200 m3/d are newly added. The original system is upgraded by renovating the original ECRI tank, biochemical reactor and regulating tank.

● One set of sewage treatment system is newly built in each of the Gulou Service Area and the east and west zones of the Baomuyuan Service Area, with a single construction scale of 100 m3/d;

● One set of sewage treatment system is newly built in each of the Xin'an Ramp Toll Station, Xi'an Ramp Toll Station and Anhua West Ramp Toll Station, with a construction scale of 8.0 m3/d;

● Two sets of sewage treatment systems are newly built in the Nanjin Operation Management Center, with construction scales of 15 m3/d and 1.0 m3/d respectively.

The final efluent meets the Class I Grade A standard of the Discharge Standard of Pollutants for Municipal Wastewater Treatment (GB18918-2002).

The final effluent is discharged after meeting the Class II standard of the Discharge Standard ofMain Water Pollutant for Urban Sewage Treatment Plants in Hunan Prov-(DB43/T 1546-2018).

Modern Environment empowers digital-intelligent integration, committed to creating a clean and safe production and living environment

In 2025, Modern Environment successfully completed the construction of the "Intelligent Operation and Maintenance Management Platform for Sewage Treatment". Relying on IoT technology, it built a full-process digital system, which collects real-time data such as water quality of sewage facilities and equipment operation status and conducts intelligent analysis, driving the transformation of the operation and maintenance model from "passive emergency repair" to "proactive operation and maintenance". Its

Xiangxiang Subsidiary built an unorganized gas collection device for the chelation workshop and temporary storage warehouse, which efectively collects and centrally treats volatile gas dissipated in the area, significantly reducing the impact on the surrounding environment. This technology was selected into the provincial advanced environmental protection technologies, provincial transportation scientific and technological achievements and the promotion catalog of Hunan Expressway Group, and has been applied in more than 20 service areas, with achievement transformation income exceeding 40 CNY million.

The Company strictly abides by relevant noise emission standards, and controls noise pollution at the source, including equipmen procurement and manufacturing process design, to ensure compliance with laws and regulations. Noise during operation is strictly controlled, and low-noise pavement materials are preferred as the primary noise reduction method to fundamentally reduce noise generation. Combined with engineering characteristics and surrounding natural environment features, the Company scientifically designs green isolation belts to build ecological noise barriers and efectively block noise transmission. While ensuring noise emis sion compliance, the Company actively listens to the opinions of surrounding communities and takes the initiative to carry out low noise pavement renovation, so as to efectively eliminate or mitigate the noise hazards of expressway operation along the route

Focusing on people's livelihood demands to solve noise pollution

The Company actively listened to community opinions and implemented a low-noise pavement renovation project for the noise pollution problem of the Lituo Sinking Section of the Changsha–Tanjiang Expressway. While implementing environmental protection and noise reduction projects, guided by the responsibility of the operator, the Company took multiple measures to deepen community linkage, established a long-term monitoring mechanism for noise reduction efects, and optimized facility maintenance plans. It also upgraded low-noise pavement materials and technolo gies to further improve noise reduction efect and durability. With higher-quality expressway operation services, the Company promotes the harmonious coexistence of transportation infrastructure with urban ecology and community life, and earnestly fulfills the social responsibility and livelihood commitment of an expressway operator.

Waste treatment

To ensure the efective control and treatment of the "three wastes" (waste water, waste gas, solid waste) during operation, the Company actively explores new "three wastes" treatment methods, ensures the reasonable and compliant disposal of wastes, and promotes waste recycling.

For wastes such as asphalt waste and discarded building materials generated during road construction, the Company gives pri ority to local recycling and applies them to other nearby road engineering projects, improving resource utilization eficiency and reducing the environmental impact of wastes. Taking discarded corrugated panels generated during construction as an example, the Company uniformly recycles them and hands them over to Modern Assets for professional treatment, providing reusable raw materials for other enterprises, efectively extending the service life of resources and promoting resource recycling in the industry.

When cooperating with local waste recycling plants to treat wastes requiring third-party intervention, the Company strictly controls the qualifications of partners, requiring all third-party units involved in waste treatment to have complete relevant qualifications, and the treatment process must strictly comply with environmental protection requirements and industry standards

Modern Environment jointly builds an experimental platform for collaborative dispos al of waste incineration fly ash and silicon-rich waste to promote solid waste resource utilization

The innovation and entrepreneurship team for solid waste resource utilization of Modern Environment, together with hydrothermal technology experts and building materials experts from Hunan University, jointly built an experimental platform for collaborative disposal of waste incineration fly ash and silicon-rich waste. The team carried out research on the water washing process of waste incineration fly ash, clarified the key process parameters and data of hydrothermal harmless and resource treatment; conducted preliminary design and development of key equipment for the hydrothermal disposal system; explored the development of key components and system integration paths; and carried out life cycle analysis and comprehensive eval uation of the experimental system in terms of economy, energy consumption and environmental impact. Through industry-university-research cooperation, the platform continues to be built, providing an innovative path for solid waste disposal.

Green ofice

The Company incorporates energy conservation and environmental protection actions and publicity and education into routine work, encouraging employees to start from small things in daily ofice work and thoroughly practice the green and sustainable office philosophy

Green ofice initiatives

● Promote paperless ofice, and use electronic documents and instant messaging tools for file transmission and information communication

● Encourage employees to print on both sides

● Post green ofice publicity slogans in the ofice area

● Carry out energy-saving renovation of air conditioners, elevators and other equipment in the office area

● Precisely implement the "power reform" project and promote the intelligent transformation of lighting systems

● Install energy-saving kitchenware such as energy-saving stoves

● Launch the "Clean Your Plate Campaign" and post publicity slogans to advocate employees to save food

● Regularly organize employees to participate in energy-saving training

● Add green ofice-related content to new employee onboarding training

Yueyang Baling Rural Commercial Bank (RCB) continues to tap energy-saving potential, vigorously promotes paperless ofice, re alizes the full coverage of OA ofice software in the headquarters and all branches, and achieves full-process online operation and electronic approval for various administrative and operation processes. The Bank precisely implemented the "power reform" project, successfully adjusted the power nature of many branches from commercial power to residential power, promoted the intelli gent transformation of lighting systems in all branches across the bank, and installed timing switch control systems for all branch light signs to ensure automatic shutdown during non-business hours, eliminating invalid energy consumption. It achieved a win win situation of "quality guarantee" and "cost reduction", demonstrating the green efects of refined management.

Protecting Ecological Environment

Xiandai Investment always upholds the clean and low-carbon development philosophy, and integrates the ecological civilization concept into various production activities such as engineering construction, operation and maintenance, achieving a win-win o "environmental protection account" and "development account".

Biodiversity

In strict accordance with the Ecological Environmental Protection Management System, the Company carries out biodiversity protection and restoration throughout the whole process of project "design-development-construction-operation", including eco logical protection projects, habitat restoration, species conservation programs, and reducing the impact on biodiversity and land during operation. In 2025, the Company added ecological slope management and ecological greening sectors to its business, and gradually formed an integrated service capacity of "management + beautification".

Modern Environment integrates engineering protection and ecological restoration to promote harmonious coexistence between human and nature

The southeast slope support project of the Huaihua Domestic Waste Incineration Power Generation Project of Modern Environ ment systematically adopts the combination of rigid-flexible and ecological technologies: "gravity retaining wall + gabion net + vegetation blanket". The project gives priority to mixed sowing with plants adapted to the local climate to promote the recovery of soi microbial communities, restore regional water circulation and carbon fixation capacity. The composite vegetation layer provide foraging and habitat space for insects, birds and other organisms, and the softened slope landscape significantly reduces the visua abruptness of industrial facilities. It not only efectively prevents water and soil loss and quickly restores vegetation coverage, bu also realizes the harmonious coexistence of the project with the surrounding mountain environment.

Huaihua Branch carries out project construction based on the principle of maintain ing ecological authenticity

During the construction of projects around the Yanzidong Tunnel, Huaihua Branch took into account the complex geological con ditions nearby. The location of the tunnel portal follows the principle of "early entry, late exit" to minimize the excavation height of the portal side and upward slopes, and reduce the damage to the natural environment of the portal. The portal design compre hensively considers factors such as terrain, geology and coordination of left and right portals, combined with the requirements of portal drainage and slope stability, and strives for a simple portal structure. The selection of portal forms takes into account various factors such as the coordination of tunnel functions with the surrounding environment, trafic engineering, maintenance manage ment and tunnel portal construction conditions, striving to achieve the unity of safety, applicability, economy, aesthetics and natural harmony.

Land use

The Company practices the development philosophy of "green ecological integration", rationally uses land, enriches the spare time cultural life of employees, beautifies the park environment, and continuously improves the park greening rate, providing innova tive ideas for the Company's ecological environment protection.

Huaihua Branch launches the "Garden-style Unit" creation activity

Huaihua Branch insists on including greening and beautifying the environment in its important agenda, establishes and improve systems such as greening management and sanitation cleaning, and promotes the creation of a "garden-style unit". In accordance with the creation philosophy of "ecology, harmony and people-oriented", through careful planning and design, increased capital investment, strengthened scientific management and implementation of creation responsibilities, the overall greening rate of the ofice premises reached 79%. A variety of trees, shrubs, ground cover plants and flowers are planted in the courtyard, forming a diverse plant community. A landscaping system with reasonable layout, optimized functions, distinctive features and an organic combination of "points, lines and surfaces" has gradually taken shape.

Gathering Talents in Hunan Nurturing Xiandai's Talent Workforce

Talent Section

Xiandai Investment focuses on the core tasks of "performance-driven guidance, talent-powered enterprise development, service quality upgrading, and in-depth reform advancement". We improve the remuneration and welfare system and democratic management mechanism, refine the talent development system, broaden career development paths, optimize talent structure, foster a harmonious and inclusive working environment, safeguard the legitimate rights and interests of employees, stimulate innovation vitality, promote the common growth of employees and the enterprise, and provide solid talent support for high-quality development.

Protecting Employees' Rights and Interests

Xiandai Investment strictly abides by the Labor Law ofthe People's Republic ofChina, Labor Contract Law ofthe People's Repuband other laws and regulations. We have established and improved a system for safeguarding employee rights and interests, and efectively uphold the basic rights and interests of employees. By improving the remuneration and welfare system, refining the democratic management mechanism, implementing the equal employment policy, and fostering a fair working envi ronment, we have built harmonious and stable labor relations, enabled employees to share the fruits of enterprise development, and achieved the common growth of the enterprise and its employees.

Improving the remuneration and welfare system

The Company has deepened the reform of the "three institutional systems" (labor, personnel, and distribution systems), and estab lished a scientific remuneration management system and diferentiated performance incentive mechanism. We have implement ed the "Four Eficiencies" remuneration distribution system (higher returns for more output, stronger competence, greater cost savings, and heavier responsibilities), established the orientation of "volume first, with equal emphasis on volume and eficiency", and built a set of operable, quantifiable and scalable performance salary distribution model. We have strengthened the linkage between labor performance and eficiency, achieved salary growth alongside profit increase, and efectively enhanced employees sense of gain and well-being.

Refining the democratic management mechanism

The Company has always upheld the founding mission of "serving the core business, serving the overall development, serving the grassroots level, and serving frontline staf", and followed the working philosophy of "demand-oriented, order-based services". We standardize the convening of Staf and Workers' Congresses at all levels, which deliberate on key documents including adminis trative work reports, safety work debriefing reports, and proposal review reports, vote on the appointment and removal of worker supervisors, extensively collect opinions and suggestions from employees, and drive the high-quality implementation of 6 key em ployee proposals. We have efectively integrated democratic management into corporate governance.

Building a fair working environment

The Company strictly abides by the Labor Law ofthe Peo le's Re ublic ofChina, Labor Contract Law ofthe Peo le's Re ublic of and other laws and regulations, adheres to the principle of equal employment, and improves the labor contract management system to achieve "formal procedures for employment, standardized criteria for management".

Prioritizing Employee Development

Adhering to the "talent-powered enterprise" strategy, Xiandai Investment has built a tiered and classified talent development sys tem. By improving the training system, building talent echelons, and optimizing the promotion mechanism, we have created a tal ent development platform with fair standards and clear paths, facilitating the personal growth of employees and the improvement of corporate competitiveness, and realizing the common development of the enterprise and its employees.

Enhancing the comprehensive quality of employees

The Company has established and improved the employee training system, formulated the Implementation Plan for Employee , and organized various training courses covering all positions across the Company's system. We have revised and issued regulations including the Training Management Measures of the Company and Internal Trainer , built an internal trainer team, and recommended internal trainers to higher-level authori ties. Through multiple measures, we provide a continuous talent pipeline for the Company's development

M 2025

Annual training expenditure 913,700 _CNY

Total training hours 110,294.62 _hours

Employee training coverage rate 100_%

Total number of trainees (including dispatched workers)

2,492 _persons

Total training sessions

1,406

Average training hours per employee

44.3 _hours

Huaihua Branch actively explores new paths for talent development

On April 9, 2025, the Huaihua Branch held an apprenticeship pairing ceremony themed "Honoring Teachers and the Way, Inheriting Craftsmanship", and formulated a scientific and rigorous training system. Mentors are required to formulate monthly learning plans

and regularly provide feedback on the apprentices' growth progress; apprentices are required to actively participate in frontline work to achieve the "integration of learning and practice". Meanwhile, monthly assessments are linked to yearend excellence evaluation to ensure the tangible results of the initiative. Through the mentoring interaction model of "experienced employees guiding new hires, and new hires inspiring experienced peers", the branch strives to build a high-quality, interdisciplinary talent team and drive the overall upgrading of the talent pool.

Stimulating the vitality of talent development

The Company has issued the Company Job and Rank Management Measures, Guiding Opinions on the Rating ofTechnical Sequence Job Grades of the Company, Guiding Opinions on the Job Grade Rating of Operational Sequence Employees of the Compaand other regulations. We have established a technical talent evaluation system, unblocked the caree development path for technical talents, stimulated employees' enthusiasm for deepening their professional expertise, and laid a foundation for the Company to strengthen the technical core of the operation segment, cultivate skilled talents, and optimize the construction of the technical team.

"Guan Cong Studio": The "Incubator" for Grassroots Skilled Talents

To further advance the reform of the industrial workforce development, unblock the growth path of frontline skilled talents, and stimulate the vitality of grassroots talents, the Huaihua Branch, relying on the technical expertise of Guan Cong, a Model Worker o Hunan Province, oficially inaugurated the "Guan Cong Studio". The studio has built the talent cultivation brand of "State-Owned

Enterprise Craftsman Young Pioneer", and established and improved the skill inheritance mechanism of "passing on, helping and guiding". Taking the opportunity of the Company's intensive reform, the studio focuses on the competency requirements of core positions such as operation and maintenance technology, and toll collection business to carry out systematic training. At present, the "Guan Cong Studio" has become a characteristic platform for intensive reform and interdisciplinary skilled talent training in Hunan's expressway sector. It is a typical practical achievement of the Company's implementation of the talent-powered enterprise strategy, and has delivered a large number of high-quality frontline technical talents for the industry.

Consolidating talent support for development

Adhering to the talent development philosophy of "equal emphasis on recruitment and cultivation, and echelon building", the Company has built a multi-level talent support system. We carry out precise talent recruitment in accordance with the annual em ployment plan to optimize the structure of the talent team; build a platform for the application of provincial-level talent project and youth innovation and eficiency studios; actively strive for financial support for talent development, promote the implemen tation of talent projects, recommend experts to enter the provincial judge pool and review expert pool, and expand the space fo talent development

Caring for Employees' Health and Well-being

Xiandai Investment attaches great importance to the physical and mental health of employees. We have established and improved an occupational health and safety management system, refined the health protection mechanism, strengthened safety training and education, continuously improved the working environment, safeguarded the life, health and safety of employees in an all round manner, and created a safe, healthy and comfortable working environment for employees.

Protecting the physical and mental health of employees

The Company has established an employee health check-up system, optimized the health examination plan, implemented specia health protection measures, strengthened health care for female employees, carried out regular assistance for employees in difi culties, built a physical and mental health service system, enriched employees' cultural and sports activities, improved employees mental health, and consolidated the line of defense for the life, physical and mental health of employees.

Building a regularized dificulty assistance system to convey the warmth of the state owned enterprise

The Company has established a regularized assistance mechanism for employees in dificulties featuring "centralized festival con dolences + daily dynamic assistance", forming a full-process management system with dynamic updates of the ledger of employ ees in dificulties and precise matching of needs

During the 2025 Spring Festival, the Party Committee leadership team of the Company led visits to the Changsha Branch, Huaihua Branch, Modern Wealth and other units, to visit and console employees in dificulties and frontline staf at grassroots stations. They

held discussions with frontline employees to listen to their actual demands. At present, the Company has formed a multi-dimensional assistance system covering living assistance, medical support, and education subsidies for the children of employees in dificulties, to precisely solve the pressing dificulties and concerns of employees. In 2025, the Company visited and consoled employees in dificulties for more than 20 individuals, with a total expenditure of 2 CNY million on condolence money and various support benefits. We have efectively delivered the warmth and care of the Company's Party Committee to employees, and continuously enhanced the sense of belonging and identity of all employees.

Measures taken to safeguard employees' physical and mental health and safety

Measures taken to safeguard employees physical and mental health and safety

Labor protection allocation

● We provide safety protection equipment that meets national standards in full for frontline employees in toll collection, maintenance and road administration positions, conduct regular inspection and replacement of the equipment, to safeguard the labor safety of personnel engaged in outdoor and night operations.

Health check-up services

● We organize free annual health check-ups for all employees.

● For employees working night shifts, we add special examinations for cardiovascular diseases and sleep quality; for employees engaged in outdoor operations, we add special screenings for skin diseases and joint diseases, to achieve early detection, early prevention and early treatment.

Working environment optimization

● We have upgraded and built staf rest areas, water purification equipment, and heating and cooling air conditioning systems for grassroots stations, improved the accommodation and catering conditions for employees at remote stations, to create a comfortable working and living environment.

Mental health services

● We have established a company-wide mental health care mechanism.

● We carry out full-staf mental health counseling (Employee Assistance Program, EAP), providing mental health lectures, one-on-one consultations and psychological hotline services, to help employees alleviate work pressure and resolve emotional distress through multiple forms.

Care for special groups

● We have established a special assistance ledger for female employees during pregnancy and lactation, as well as employees with illnesses and family financial dificulties, and implemented care policies such as paid leave and hardship allowances.

Strengthening occupational health management

The Company has established and improved the occupational health and safety management system for employees, and refined the occupational health protection mechanism. For the occupational health of personnel working in special positions, we provide labor protection supplies and improve the operating environment. For high-risk operation links, we have formulated special protection measures to reduce occupational health risks. We have improved the occupational health training system to enhance employees' awareness of occupational health and self-protection capabilities. No major work safety accidents occurred throughout the year.

M

2025

Investment in safety facilities, equipment and labor protection supplies

Number of work-related fatalities

Committed to Hunan's Development Fulfilling Xiandai's Social Responsibilities

While pursuing corporate development, Xiandai Investment has always remained committed to giving back to society. We advance hand in hand with partners to jointly build the industry ecosystem and promote industry development, actively foster sound community relations, and deeply participate in the comprehensive rural revitalization strategy. We contribute to enhancing social well-being and promoting coordinated regional development, and share the fruits of corporate development with the whole society.

Building a Responsible Supply Chain

The Company strictly complies with the Regulations on the Implementation of the Bidding and Tendering Law of the People's Re-, and other relevant laws and regulations. We have formulated a series of systems including the Bidding and Procurement Management System and Management System for Bidding and strive to ensure the orderly operation of the supply chain management system. No illegal or irreg ular incidents related to bidding and procurement occurred in the Company during the reporting period.

Supplier management

The Company adheres to the principles of "openness, fairness and justice", and in accordance with the established Supplier Man-, and other regulations, conducts standardized management of the full life cycle of suppliers, including access mechanism, investigation and evaluation, performance appraisal, exit mechanism and confidentiali ty management. We strictly implement pre-procurement, in-procurement and post-procurement supervision.

Supplier admission

● A new supplier development plan is carried out quarterly. During the supplier admission stage, information is collected from multiple channels, and risk assessments ar conducted. After a basic investigation, an on-site inspection and evaluation are performed. Suppliers passing the evaluation are included in the potential supplier list.

Supplier assessment

● Suppliers are categorized into five major types: equipment, materials, engineering, services, and others, with different evaluation criteria. Based on their scores, they are classified into four levels, and non-compliant ones are included in the restricted bidding list.

Supplier monitoring

● For existing suppliers, follow-up inspections and dynamic evaluations are conducted to encourage their continuous improvement in product and service quality.

Risk response

● We proactively identify and dynamically monitor supply chain risks, ensuring supply chain secu rity and compliance through quality control and emergency mechanisms. We maintain frequen communication with suppliers, promptly share in formation and requirements, conduct full-process tracking and inspection of projects, and evaluate project progress. We have established correspond ing emergency mechanisms for contractors' perfor mance capabilities and unexpected situations to ensure the Company's stable development.

Responsible procurement

Xiandai Investment has integrated the idea of environmental protection into the procurement of materials and equipment, and prepares and continuously optimizes the Bidding and Procurement Management System. Through the four-in-one bidding and procurement management system, the Company prioritizes the procurement of energy-saving and environmentally friendly products, strictly abiding by national green manufacturing standards and relevant customer requirements with a commitment to build ing a responsible supply chain. During the reporting period, the Company required relevant suppliers to participate in industry and professional training organized by relevant ministries and commissions.

Four-in-one bidding and procurement management system

Clarifying management responsibilities

Clarify the rights and responsibilities of bidding and procurement management at all levels

Optimizing management mechanism

Formulate the Bidding and Procurement Management System

Building information platform

All announcements issued by units at all levels enter project information through the platform, and record and manage the whole process of bid opening, evaluation and bid selection on the platform, and take this as basis for signing the project contract

Enhancing professional quality

Conducting training on bidding and procurement and contract management

Promoting Win-Win Development with Partners

Xiandai Investment actively builds cooperation platforms, carries out open cooperation with partners from all parties for mutua benefit and win-win results, continuously expands the scope of cooperation, and works together to build a value ecosystem of the industrial chain, to promote the common growth of the Company and all its partners

Baling RCB: Efective police-bank collaboration stops telecom fraud at the counter to protect people's livelihoods

In December 2025, the Business Department of Baling RCB successfully intercepted a telecom fraud case through the police-bank linkage mechanism, helping a customer avoid potential losses of 500,000 CNY. On the day of the incident, the bank teller noticed that the customer was acting abnormally when handling the early withdrawal of a large-amount fixed deposit, and refused to ex plain the purpose of the funds. The teller immediately activated the police-bank linkage emergency plan: The teller calmed and retained the customer on the pretext of information verification, and simultaneously sent an early warning to the local police sta

tion. Police officers arrived at the scene promptly, confirmed that the customer was falling victim to telecom fraud, and dissuaded the customer on site. The customer finally abandoned the transfer. This incident is a vivid practice of Baling RCB in deepening the police-bank linkage mechanism. Through the keen identification of frontline employees and the rapid response of the public security authorities, the bank efectively protected the "hard-earned money" of the public.

Modern Environment: Multi-party industry-university-research collaboration drives multiple joint innovation initiatives

In 2025, Modern Environment and its subsidiary Xiangxiang Branch, together with Central South University, carried out the "Re search on Key Technologies for Mercury Pollution Control in Waste Incineration Flue Gas", which was approved as a Hunan Provin cial Environmental Protection Scientific Research Project. It also joined hands with Hunan Expressway Group and Hunan University to conduct the "Technical Research and Engineering Demonstration on the Co-Disposal and Building Material Utilization of Waste Incineration Fly Ash and Silicon-Rich Wastes". These projects provide technical support for the green and low-carbon developmen of the waste incineration industry, and contribute to the realization of China's "Dual Carbon" strategic goals. In addition, Modern Environment has carried out joint project research with Hunan University, providing a real production environment and R&D fund ing support for college students' innovation and entrepreneurship. By integrating scientific and technological innovation with tal ent cultivation, the company strives to build a more competitive innovation ecosystem.

Dayou Futures hosts "Training Session on Risk Management and Application for Lithium Carbonate Industrial Chain Enterprises"

On December 10, 2025, the "Training Session on Risk Management and Application for Lithium Carbonate Industrial Chain Enter prises", hosted by Dayou Futures and supported by the Guangzhou Futures Exchange, was successfully held in Changsha. The training session precisely matched the needs of the industry, attracting participants from 25 midstream and downstream lithium car bonate production and trading enterprises. This event is a vivid practice of Dayou Futures in implementing the "industry + finance" integrated development model. It not only improved the awareness and utilization of lithium carbonate futures instruments in the regional industry, but also helped industrial chain enterprises consolidate risk prevention barriers, stabilize business expectations, and inject financial impetus into the high-quality development of the real economy.

Fulfilling Community Responsibilities

Xiandai Investment gives full play to its own advantages, actively participates in the overall development of society and regional coordinated development, practices corporate social responsibility with practical actions, is committed to realizing the vision o harmonious and common prosperity of society, and contributes to improving the overall development level of the region.

Boosting rural revitalization

The company actively responds to the national strategy for all-round rural revitalization, earnestly implements the work arrangements on rural revitalization and consumption assistance made by the CPC Hunan Provincial Committee and the People's Government of Hunan Province, and proactively fulfills the social responsibility of a listed company. It closely integrates its own development with rural revitalization, leverages its professional strengths and the resource advantages of the assisted areas, adopts location-specific and targeted measures, and comprehensively supports rural development.In 2025, the company dispatched two staf members to participate in the village-based rural revitalization assistance work organized by the State-owned Assets Supervision and Administration Commission of Hunan Province and Hunan Expressway Group, and carried out consumption assistance in the designated village.

Innovative characteristic financial services to deepen rural financial inclusion

Xiandai Fortune has partnered with Hunan New Wellful Co., Ltd. on the Huaxin Agriculture and Animal Husbandry Project, provid ing targeted support for the construction of high-standard pig farms through financial leasing. The project has delivered remark able social and environmental benefits. On the one hand, the high production capacity can significantly increase the regional live pig supply, contributing to the stability of the "vegetable basket" supply. It also brings land transfer income for local residents, fixed asset rent after the completion of the pig farms, and long-term employment opportunities generated by breeding operations. On the other hand, the environmental protection treatment facilities supporting the high-standard pig farms can convert manure into organic fertilizer for surrounding farmland and orchards, forming an ecological cycle of "integration of planting and breeding", and improving the production eficiency and environmental protection level of the industry.

Xiandai Investment's financial measures to boost rural revitalization

Strengthening the eficiency of financial sup ply

● We deepen government-bank collaboration, conduct regular visits to farmers, micro and small entities, industrial clusters and commercial markets, to accurately identify financing needs in the agriculture, rural areas and farmers ("Three Rural Issues") sector, dynamically track service demands, efficiently allocate credit funds, and customize diferentiated credit solutions. We fully support farmers in increasing their income, and comprehensively expand the coverage and availability of financial supply for the "Three Rural Issues" sector.

Deepening finan cial literacy education and promotion0

● Through diversified models including "online + offline" and "centralized + door-to door" sessions, we carry out tiered and targeted financial knowledge lectures for village organizations and villagers, bring financial knowledge to rural areas and households, efectively enhance the financial risk awareness and market participation capacity of ru ral entities, and foster a rural financial ecosystem where people "understand and make good use of finance".

Cultivating new types of business entities

● We conduct a systematic investigation of new types of rural business entities, special ized farmers and key enterprises, and establish a tiered cultivation database covering "advantageous industries - potential enterprises - scaled farmers". We provide targeted empowerment for entities with standardized management, marketable products and strong growth potential, to help form the "One Village, One Product" industrial pattern.

Optimizing the rural financial ecosystem

● We advance the quality improvement project for the development of credit villages and credit townships, strengthen the promotion and guidance of integrity culture, and strict ly implement preferential diferentiated credit policies for credit villages. Through the development of the credit environment, we drive the improvement of rural civilization, and build a virtuous cycle of "credit empowerment - financial support - industrial devel opment".

Dayou Futures continues to leverage the "Insurance + Futures" model to boost comprehensive rural revitalization

In 2025, Dayou Futures continued to provide in-depth services for rural revitalization through the "Insurance + Futures" projects. Throughout the year, the Company successfully implemented 104 "Insurance + Futures" projects, covering about 47 counties and districts nationwide, with an insured spot scale of 190,000 tons and a total commodity value exceeding 2.28 CNY billion. It paid a

total of 33.3719 CNY million in indemnities to farmers and cooperatives. The natural rubber "Insurance + Futures" pilot project in Mengla County, Yunnan Province, jointly declared by Dayou Futures and CPIC Yunnan Branch, was carried out smoothly, achieving a compensation effect well received by the insured farmers. The Party Branch of the Company also signed a paired assistance agreement with the local grassroots Party organization of the project, efectively carrying out industrial assistance and Party building co-development, to fully support rural revitalization.

Expanding the reach of rural financial services to bridge the "last mile" of rural financia inclusion

Yueyang Baling RCB has built Fuxiang E-Station, integrating financial services into the daily life scenarios of villagers through a lightweight service model. Take the Fuxiang E-Station (Damingshan Service Point) at Zhangguying Village Committee as an example. The station focuses on solving the dificulties of villagers: traveling long distances for small-sum deposit and withdrawal, cumbersome livelihood payment procedures, and inconvenient subsidy inquiry. Villagers can handle pension withdrawal, medica

insurance and social security contributions, small-sum transfers for agricultural materials and other businesses nearby. At the same time, the station cooperates with the village committee to carry out financial knowledge popularization activities, realizing the dual delivery of "financial services + knowledge popularization". The construction and operation of the stations have efectively filled the gap in the service coverage of township branches, and become an important carrier to bridge the "last mile" of rural financial services.

Dedication to public welfare and charity

While pursuing development, the Company never forgets to give back to society, and actively carries out public welfare and charity activities to deliver warmth through practical actions. Centering on key festivals and events, we carry out volunteer services including the "Warm Winter Campaign", continuously expand activity forms, and organize Lei Feng Spirit themed educational joint activities, to achieve two-way empowerment between volunteer services and youth development, and help young people grow through serving the society.

2025

Centering on the Spring Festival travel rush, we carried out the "Warm Winter Campaign" volunteer services, dispatching volunteer service teams

Youth League members 358

The services covered the provincial capital Changsha, as well as Xiangtan, Hengyang, Loudi, Huaihua and other regions, with accumulated service hours exceeding

The Youth League Committee of the Company won the Outstanding Volunteer Service Organization Award of Hunan Province's 2025 "Warm Winter Campaign". Teams awarded the title of Outstanding Volunteer Service Team"

Directly serving more than 26,000 passengers

Individuals awarded the title of the "Outstanding Volunteer"

"Join Forces for Love, Build Dreams for Children" - Lei Feng Spirit Themed Educational Joint Activity

On March 21, 2025, the Company joined hands with Xiangfu Yingcai Primary School and Jiufengyuan Community to carry out a Lei Feng Spirit themed activity. The Company's volunteers set up the "Little Financial Lei Feng Classroom", helping children establish a correct consumption concept through fun explanations and financial management games. They organized the "Children' Heart Market" charity bazaar, with all proceeds donated in full to the Changsha Youth Development Foundation. They also held

waste sorting promotion sessions and Lei Feng story sharing meetings. With public welfare and charity as the core thread, the activity linked school-enterprise-community resources, instilled the power of kindness in children, built a sustainable development ecosystem of "education + public welfare + practice", explored a new path for the coordinated development of enterprises and society, and demonstrated the social responsibility of a state-owned enterprise.

Yueyang Baling RCB integrates financial knowledge promotion into the national "Village Spring Festival Gala"

On January 22, 2025, Zhangguying Village in Yueyang County was bustling as the main venue of the national Spring Festival "Village Spring Festival Gala". Meanwhile, young employees of Yueyang Baling RCB carried out a themed promotion campaign of "Golden

Snake Welcomes the Spring, Deposit Insurance Protects Your Wealth" at the event, delivering a special financial "knowledge package" to villagers and tourists from all over the country. At the event site, the staf enthusiastically distributed promo tional brochures to passing tourists, and explained in detai the core knowledge of deposit insurance, including its basic concept, coverage scope and repayment ceiling. This activity not only helped the public understand the protection function of deposit insurance, but also made the public feel that rural commercial banks are the reliable, responsible banks always by the people's side.

Modern Environment launches a series of public welfare science popularization activities

Modern Environment proactively carries out public welfare science popularization activities for the public, industrial enterprises and partners. On June 5, 2025 (World Environment Day), it joined hands with the Gejiu Branch of the Honghe Prefecture Ecologica Environment Bureau to carry out the "Beautiful China, I Take the Lead" Environment Day themed promotion. Through facility dis

play, professional explanation and interactive experience, the activity enhanced the public's understanding of hazardous waste disposal and resource recycling. On June 25, it cooper ated with hazardous goods transportation enterprises to hold a "Safety Drill + Facility Open Day" event, explaining environ mental risk prevention and control in line with industry char acteristics, and strengthening the environmental protection and safety awareness of practitioners. On December 9, it held a special environmental protection facility open day for back bone staf of local large retail enterprises. Through immersive visits and exchanges, it promoted the cross-industry dissemi nation of environmental protection concepts.

Outlook

The formidable passes and long road stood firm as iron, yet now we take bold strides forward to start a new journey. The 15th Five-Year Plan period is a critical period to lay a solid foundation and go all out for the basic realization of socialist modernization. Xiandai Investment will thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council on improving the modern corporate system with Chinese characteristics. We will take the ESG philosophy to guide the new journey of high-quality development, focus on the green transition of smart expressways and embed low-carbon principles into every link of construction and operation. We will uphold our due responsibility for rural revitalization and fulfill the mission of a state-owned enterprise on the path to common prosperity, and consolidate the foundation of modern corporate governance to prevent and defuse risks through institutional strengths. We will adhere to long-termism, foster sustainable competitiveness, and strive to build a new benchmark for listed companies with leading value and high-quality development.

Appendixes

Key ESG Performance

Note1:In November 2025, the Company completed its Board of Supervisors reform, consolidating the functions previously assigned to the Board o Supervisors into the Board's Audit Committee. Note2:In 2025, the "Strategy Committee" was adjusted to become the "Strategy and Sustainability Committee".

Environmental performance

Note: During the reporting period, the Company increased the mileage of entrusted managed road sections, which led to a substantial growth in pur chased electricity consumption, and in turn drove a notable increase in Scope 2 greenhouse gas (GHG) emissions

Social performance

Report Indicator Index

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