中 鲁Ｂ：2025年度环境、社会及公司治理（ESG）报告（英文）

ESG

ZHONGLU OCEANIE DEEP-SEA 7157199

Shandong Zhonglu Oceanic Fisheries Co., Ltd

Tel:0532-55719257 0532-55715968

Fax:0532-55719258

E-mail: zloffice@zofco.cn

Address: Building 1, Guoxin Financial Center, No. 31 Xianxialing Road, Laoshan District, Qingdao, Shandong Province, China

2025

Environmental, Social and Governance Report

CONTENTS

Foreword

About This Report

Report Time Frame 03 Report Scope 03 Preparation Basis 03 Data Description 03 Appellation Description 04 Report Quality Assurance 04 Report Availability 04

About Zhonglu Oceanic

Company Profile 05 Organizational Structure 07 Corporate Culture 08 Industrial Layout 08 Products 09 2025 Major Events 10 Honors and Recognitions 11

Accountability in Focus: Strive for Maritime Strength, Advancing toward Innovation

Global Market Layout 13 Marketing Innovation Break-through 14 Brand Influence Enhancement 16

ESG Management

ESG Governance Structure 17 Stakeholder Engagement 17 Identification of Material Topics 18

01

Fulfilling Green Responsibilities Building an Ecological Civilization

Responding to Climate Change 21 Enhancing Environmental Management 25 Optimizing Resource Utilization 26 Strengthening Pollution Prevention and Control 28 Ecosystems Conservation 30 Practicing Green Operations 32

02

Cultivating Strong Senses of Responsibility

Strengthening Compliance Management 37 Total Quality Management 39 Service Quality Improvement 43 Responsible Supply Chain 45 Promoting Industry Development 46 Innovation-driven Development 49

03

Adhering to People-oriented Principle

Jointly Creating a Harmonious Future Protecting Employee Rights and Interests 55 Conveying Employee Wellbeing 61 Strengthening Safety Defense 67 Gathering Public Welfare Care 73

04

Activating Governance Momentum Consolidating the Foundation of Development

Improving Corporate Governance 77 Compliance-based Operation 79 Adhere to Business Ethics 81

Vision for the Future 83 Postscript of the Report Indicator Index 85 Feedback 87

Foreword

2025 marks a pivotal year of transition, as it concludes the 14th Five-Year Plan and sets the stage for the 15th Five-Year Plan. Amid a complex and ever-changing external environment and a series of mounting challenges, Zhonglu Oceanic has remained steadfast in its goal of building a world-class exemplary ocean enterprise. With faith as the helm and hard work as the sail, it has braved the winds and waves, forged ahead with determination, and achieved repeated successes on the new journey of high-quality development.

This year, we anchored ourselves in our core business, deeply cultivating the vast expanse of the distant-water fishery sector.

Zhonglu Oceanic focuses on its core business, advancing the coordinated development of three major operations—long range fishing, maritime transportation, and cold storage processing and trade—while continuously strengthening its industrial chain advantages. In 2025, the Company operates a fleet of 27 distant-water fishing vessels, adopting a strategy of "stabilization, expansion, and upgrading" to ensure safe and efficient operations in the Indian Ocean, Atlantic Ocean, and Pacific Ocean. Its eight large refrigerated cargo vessels sailed over 160,000 nautical miles throughout the year with a departure rate exceeding 98%, achieving a "dual guarantee" of high departure rates and operational days. The cold chain processing business successfully passed top international food safety certifications such as BRCGS (Global Food Safety Standard) and IFS (International Food Standard). Annual export volume increased by over 13% year-on-year, while export value rose by more than 30%, demonstrating remarkable progress in international market expansion.

This year, we leveraged innovation as a driving force to unlock strong momentum for transformation and upgrading.

Zhonglu Oceanic adheres to an innovation-driven development strategy, leveraging technological innovation to promote the high-end and intelligent transformation of the marine industry. In 2025, the Company continues to increase R&D investment, with a year-on-year growth of 2.58%. Relying on industry-university-research collaborative innovation, breakthroughs have been made in key technological fields such as biodegradable fishing net materials and the domestic transformation of ship equipment. In collaboration with Ocean University of China, research on the blood-nourishing effects of tuna blood peptide has been published in an international journal. Further advancing digital and intelligent transformation, the Company's "Sea-Air-Underground Integrated Multi-Agent Unmanned Detection Command System" won the third prize in the National Smart Ocean Big Data and Artificial Intelligence Application Innovation Competition, setting a benchmark for digital transformation in the industry.

This year, we built bridges through openness, expanding the broad stage of global cooperation.

Zhonglu Oceanic actively implements the "going global" strategy, adhering to the principle of openness and mutual benefit, and continuously deepening international exchanges and cooperation. The Company extensively participates in major exhibitions such as the Global Seafood Expo, steadily expanding its global partner network to achieve mutual benefits with all parties. It coordinates the brand layout both domestically and internationally, issuing the "Brand Building Implementation Action Plan" to advance brand development. The "Zhonglu Tuna" trademark has been awarded the title of "Shandong Well-Known Trademark", significantly enhancing brand recognition and public awareness, thereby providing strong momentum for the Company's high-quality international development.

This year, we upheld norms as our foundation, building a solid base for steady and sustained progress.

Zhonglu Oceanic has built a comprehensive governance system, advancing the enhancement of governance efficiency, the optimization of the talent team, and the management of production safety in a coordinated manner, laying a solid foundation for the Company's sustainable development. The Company continuously improves its internal control and comprehensive risk management system, refining its modern corporate governance structure; deepens reforms in talent management systems, optimizing the "promotion and demotion" mechanism for personnel selection and appointment, strengthening the talent team, and reinforcing the intellectual support for high-quality corporate development. Always adhering to the people-first and life-first principles, it strictly implements the production safety responsibility system, establishing a "full participation, whole-process coverage, and all-element control" safety management model, holding the red line of production safety, and safeguarding the Company's steady and long-term growth.

The past year has unfolded a thousand splendors, and the new year calls for even greater strides. Standing at a new starting point, Zhonglu Oceanic will uphold its mission of "let more Chinese people to enjoy deep blue, green, healthy, and perfect tuna", and focus on building a world-class exemplary ocean-going enterprise. With a bold commitment to its mission and relentless progress, it will resolutely shoulder the era-defining responsibility of propelling China's full-chain tuna industry toward global leadership.

About This Report

This report is the 2025 Environmental, Social and Governance (ESG) Report of Shandong Zhonglu Oceanic Fisheries Co., Ltd. (hereinafter referred to as "Zhonglu Oceanic"). Adhering to the principles of objectivity, standardization, transparency, and comprehensiveness, it provides a detailed disclosure of the Company's efforts in environmental protection, social responsibility, and corporate governance in 2025, addressing the expectations and concerns of stakeholders.

Report Time Frame

This report covers the period from January 1, 2025, to December 31, 2025. To ensure continuity of information, certain sections have been retrospectively adjusted and extended.

Report Scope

This report is prepared for Zhonglu Oceanic and its subsidiaries, and unless otherwise specified, is consistent with the scope of the consolidated financial statements included in the Company's annual report.

Preparation Basis

\- The Self-regulatory Guidelines No. 17 for Companies Listed on the Shenzhen Stock Exchange - Sustainability Reporting(For Trial Implementation)

• Global Reporting Initiative (GRI) Sustainability Reporting Standards

• United Nations Sustainable Development Goals (UN SDGs)

• Chinese Corporate Social Responsibility Reporting Guidelines (CASS-ESG 6.0)

• Guidelines on ESG Indicator System for Shandong Provincial State-owned Listed Companies

Data Description

The information contained in this report is derived from the Company's internal data, relevant statistical reports, or related public materials, and has been reviewed internally by the Company. Unless otherwise specified, all monetary amounts in this report are denominated in Chinese yuan (RMB).

Appellation Description

Abbreviation

Shandong Guotou

Full Name

Shandong State-owned Assets Investment Holdings Co., Ltd.

Zhonglu Oceanic, the Company, we

Zhonglu Haiyan

Shandong Zhonglu Oceanic Fisheries Co., Ltd.

Zhonglu Shipping

Shandong Zhonglu Haiyan Oceanic Fisheries Co., Ltd

Zhonglu Food

Shandong Zhonglu Fishery Shipping Co., Ltd.

Shandong Zhonglu Oceanic (Yantai) Food Co., Ltd.

Report Quality Assurance

This report adheres to the principles of accuracy, comparability, materiality, and verifiability, providing an objective, truthful, and complete disclosure without any false records, misleading statements, or material omissions. The report has been reviewed and approved by the board of directors, who bear responsibility for the authenticity, accuracy, and completeness of its content.

Report Availability

This report is available in two versions: Simplified Chinese and English. In case of any discrepancy in understanding, the Simplified Chinese version shall prevail.

The electronic version of the report can be viewed and downloaded from the Shenzhen Stock Exchange (https://www.szse.cn) or the China Securities Information Network( http://www.cninfo.com.cn). For further inquiries or any comments or suggestions regarding this report, please contact the Company via the following channels:

0532-55719258

Website

https://www.zofco.cn/

E-mail

zloffice@zofco.cn

About Zhonglu Oceanic

Company Profile

Shandong Zhonglu Oceanic Fisheries Co., Ltd. (referred to as "Zhonglu Oceanic") is a comprehensive and export-oriented company engaged in overseas fishing that was incorporated in July 1999 with the approval of the Shandong Provincial People's Government. In July 2000, the Company was listed on the Shenzhen Stock Exchange with the issuance of B shares. The controlling shareholder is Shandong State-owned Assets Investment Holdings Co., Ltd. Over the past 20 years, Zhonglu Oceanic has undergone significant growth and development. In recent years, the Company has maintained a strong trajectory of high-quality development, significantly enhancing its industrial influence and consolidating its position in the market. It has become a listed enterprise with comprehensive sea and land facilities, a complete industrial chain, and a strong presence in the national ocean fishing industry. Additionally, it serves as the vice-chairman unit of China Ocean Fishing Association and the chairman unit of Qingdao Ocean Fishing Association. It serves as the vice-presidential unit of the China Overseas Fisheries Association and the presidential unit of the Qingdao.

Total assets

Operating income

Total profit

2168.2131 million yuan 1,486.6927 million yuan 45.2722 million yuan

Organizational Structure

Corporate Culture

Industrial Layout

Long range fishing

During the Reporting Period, the Company had 27 distant-water fishing boats, including 14 large ultra-low temperature tuna longliners, nine (sets of) large tuna seiners, two medium-sized trawlers, and two squid fishing boats, which mainly operated in the Indian Ocean, the Atlantic, and the Pacific.

Maritime transportation

During the reporting period, the Company's eight large ocean-going vessels demonstrated excellent performance, strict management, and standardized service. These vessels are suitable for the deep-sea frozen and refrigerated transport of seafood, meat, poultry, vegetables, and fruits, with their service areas covering the central and western Pacific, the Indian Ocean, the Atlantic Ocean, and select waters and ports in North and South America.

Cold storage processing and trade

During the reporting period, the Company successfully passed two leading international food safety audits—BRC (Global FoodSafety Standard) and IFS (International Food Standard)—joining the ranks of the few food processing companies worldwide to obtain IFS certification. This achievement has laid a solid foundation for exporting products to the EU and further expanding intointernational markets. We established a "customer-sales-R&D" tripartite product co-creation mechanism to drive R&D directly into the market.

Products

Raw Tuna

Tuna Health Products

2025 Major Events

On February 18

The Member Congress of the Shandong Provincial Association of Non-Party Intellectuals and the Third First Council Meeting were held in Jinan, where Wang Huan was elected as Vice President.

In May

Zeng Zanrong, a member of the Standing Committee of the Shandong Provincial Party Committee and Secretary of the Qingdao Municipal Party Committee, led a delegation to inspect and supervise the development of the modern marine industry at the Zhonglu Haiyang Innovation Industrial Park project.

In July

The Party Committee of the Provincial State-owned Assets Supervision and Administration Commission issued the "Notice on Outstanding Achievements of the Breakthrough Projects in Grassroots Party Building by Party Organization Secretaries of Provincial Enterprises in 2024". The Party Committee of Zhonglu Oceanic's project, titled "Cultivating 'Five Hearts and Five Degrees' of Humanistic Care to Empower the High-Quality Development of Zhonglu Oceanic", was selected as one of the outstanding achievements of the breakthrough projects in grassroots party building by party organization secretaries of provincial enterprises.

In September

The parallel forum of the 2025 Ocean Cooperation and Development Forum, themed "Smart Blueprint for the Future—Modelling the Integrated Development of Ocean + AI", was held in the Qingdao West Coast New Area. During the event, the Qingdao Ocean Artificial Intelligence Large Model Industry Alliance was officially launched, and Zhonglu Oceanic was elected as the vice-chairman unit of the alliance.

In December,

The "Fourth National Smart Ocean Big Data and Artificial Intelligence Application Innovation Competition (2025)", hosted by the National Marine Data and Information Service Center and the National Marine Science Data Center, and co-organized by the Marine Information Technology Innovation Center of the Ministry of Natural Resources and the Marine Information Professional Committee of the Chinese Society of Oceanography, was successfully held in Sanya, Hainan Province. The "Sea-Air-Submerged Integrated Multi-Agent Unmanned Detection Command System" of Zhonglu Oceanic won the third prize of the competition.

On March 23

Vice President Aren Palik of the Federated States of Micronesia and his wife visited Zhonglu Oceanic.

On July 18

Mr. József Attila Móring, Hungarian Member of Parliament and Government Commissioner, along with Mr. László Berkes, Mayor of Somogyvár, visited Zhonglu Oceanic during their participation in the Qingdao Sister City Signing Ceremony.

In August

The "Zhonglu Tuna" trademark of Zhonglu Oceanic passed the review of the Shandong Intellectual Property Service Association and was rated as a "Shandong Well-known Trademark".

From August 20 to August 22

Zhonglu Oceanic participated in the Tokyo International Seafood and Fisheries Exhibition for the first time.

On September 25

A delegation from the Basque Country, Spain, paid a special visit to Zhonglu Oceanic during their trip to China for exchange and discussion.

From November 28 to December 2

Alexander Percival Segbefia, Chief of Staff to the Vice President of the Republic of Ghana, along with a delegation from the Ghana National Fisheries Association, visited Zhonglu Oceanic.

In December

Zhonglu Haiyang Innovation Industrial Park project was selected for the 2025 Shandong Provincial Service Industry Development Guidance Fund Support Project List.

Honors and Recognitions

Advanced Collective Award for Outstanding Contributions to the Construction of Shandong Ocean Power Province

山东省精神文明建设委员会

Vice President Unit of the Third Council of China Ocean Fishing Association Advanced Grassroots

山东省中鲁远洋渔业股份有限公司

山东省现代海洋产业技术创新中心 (金枪鱼加工)

Shandong Modern Marine Industry Technology Innovation Center (Tuna Processing)

山东省中鲁远洋（烟台）食品有限公司

Shandong Provincial State-owned Assets Supervision and Administration Commission Education Base for the Next Generation

"Zhonglu Tuna" Awarded as "Shandong Well-Known Trademark"

Awarded the Third Prize in the "Fourth National Smart Ocean Big Data and Artificial Intelligence Application Innovation Competition (2025)"

Global Market Layout

Zhonglu Oceanic has continuously improved its "Catch, Transport, Store, and Supply" full-chain industrial layout by relying on the "Stabilize, Expand, and Upgrade" operational strategy, achieving dual growth in international trade export volume and export value, thereby further solidifying the foundation of its international industrial layout.

Long range fishing expands operational scope

The Company's 27 specialized distant-water fishing vessels operate in the three core waters of the Indian Ocean, Atlantic Ocean, and Pacific Ocean. Leveraging its operational advantage of a large-scale tuna purse seine fleet in the Atlantic Ocean, it continues to expand the scope of longline fishing projects. It promotes the extension of ultra-low temperature longline fishing projects from low-latitude to high-latitude areas in the Southern Hemisphere, achieving balanced development of global fishery resources. In 2025, the total annual fishing output reached 59,968 tons, representing a year-on-year increase of 5.55% .

Cold chain transportation strengthens logistics support

The Company's eight large specialized low-temperature refrigerated transport vessels, ranging from 5,000 to 10,000 tons, navigate major ports worldwide, serving areas including parts of the Central and Western Pacific, Indian Ocean, Atlantic, and the waters and ports of North and South America. This ensures the long-distance frozen and refrigerated transportation of aquatic products, meat, poultry, vegetables, and fruits. In 2025, the cumulative safe navigation distance exceeded 160,000 nautical miles, with a departure rate of over 98% , guaranteeing the orderly operation of international cold chain logistics deliveries.

Processing trade explores new overseas markets

The Company has successfully passed the BRCGS (Global Food Safety Standard) and IFS (International Food Standard) audits, two of the world's top food safety certifications, laying a solid foundation for exporting products to the European Union and expanding into international markets. International trade has shown a positive trend of "rising both in volume and price", with total annual exports exceeding 17,000 tons, a year-on-year increase of over 13% ; total export value reached 79 million US dollars, a year-on-year increase of over 30% . For the first time, the Company entered the American Samoa market and successfully developed new customers in multiple countries and regions, including Canada, Russia, Chile, and Lebanon, all of which have achieved first orders for exports.

Marketing Innovation Breakthrough

Zhonglu Oceanic has broken away from the traditional single offline trade model, expanding into diverse pathways such as online digital channels, offline physical distribution, and collaborative production-sales-research development. It has built a full-scenario online and offline marketing matrix, continuously unleashing market growth momentum.

Innovating the production-sales-research product co-creation mechanism

\- Establish a "customer-sales-R&D" trinity product co-creation mechanism, using market demand to reversely drive new product development, break down the barriers between the sales and R&D ends, precisely match the differentiated needs of domestic and international customers, and accelerate the rapid implementation and direct market entry of R&D products.

Deeply cultivating the "Hundred Cities, Thousand Points" distribution model

Continuously promote the "Hundred Cities, Thousand Points" sales model, leveraging marketing and distribution centers in key cities such as Beijing, Shanghai, Shenzhen, and Chengdu to radiate to surrounding areas, establishing a nationwide sales and regional direct distribution offline sales system.

Building a digital marketing IP system

\- Innovative adoption of a dual-track model combining self-operated promotion and intermediary cooperative promotion, integrating multiple private domain platforms, and leveraging platform traffic plus community fission to drive online sales. Exploring the "brand + private domain + science popularization" online sales model, collaborating with Ocean University, Shandong Provincial Pelagic Fisheries Association, etc., to plan and host a series of themed live streaming events. Throughout the year, 135 live streaming sales events were conducted, a year-on-year increase of 460% , and private domain live streaming sales revenue grew by over 31% year-on-year.

"Full Moon, Family Reunion, Sharing the Moment with Tuna" – A Tuna Factory Traceability Livestream Event

Zhonglu Oceanic leverages a full-scenario online and offline collaborative layout, employing diverse strategies such as influencer-driven sales and group-buying channel partnerships to build a new digital marketing matrix. During the Mid-Autumn Festival, the Company launched a live-streaming event tracing the origin of its tuna factory, titled "Full Moon, Family Reunion, Sharing This Moment with Tuna". Through immersive activities like virtual factory tours, tuna butchery shows, and full-tuna banquets, the event vividly showcased Zhonglu Food's comprehensive quality control capabilities, highlighting the nutritional advantages and market potential of its products. The campaign synchronized broadcasts across 50 private domain live-streaming rooms nationwide, reaching 380,000 private domain followers, achieving a total live-stream sales revenue exceeding 2.09 million yuan, resulting in impressive marketing outcomes.

Brand Influence Enhancement

Zhonglu Oceanic has formulated and issued the "Brand Building Implementation Action Plan", refining brand building goals and implementation strategies. By leveraging the "Zhonglu Tuna" product brand as a key driver, it coordinates the promotion of brand building efforts both domestically and internationally, continuously enhancing industry and product brand recognition as well as public awareness.

"Zhonglu Tuna" Trademark Recognized as "Shandong Well-Known Trademark"

In August 2025, the "Zhonglu Tuna" trademark of Zhonglu Oceanic successfully passed the review of the Shandong Intellectual Property Services Association and was awarded the title of "Shandong Well-Known Trademark". Leveraging the Company's full-chain tuna industry advantages, the "Zhonglu Tuna" brand has consistently adhered to high standards and strict requirements, dedicated to "let more Chinese people to enjoy deep blue, green, healthy, and perfect tuna". This recognition as a "Shandong Well-Known Trademark" signifies that "Zhonglu Tuna" has received authoritative endorsement in terms of brand influence, market recognition, product quality, and corporate reputation, injecting new momentum into the development of Shandong's seafood brand.

ESG Management

Zhonglu Oceanic has integrated sustainable development into its corporate strategy and daily operations, placing emphasis on communication with stakeholders, identifying key sustainability topics, and promoting the coordinated development of economic, social, and environmental benefits.

ESG Governance Structure

Zhonglu Oceanic has established a three-tier system consisting of the Board of Directors, the Board Office, various functional departments, and affiliated enterprises. Level ESG governance structure, with clearly defined roles and responsibilities to ensure effective implementation of ESG matters and empower the Company's sustainable development.

Board of Directors(Decision-making level)	Responsible for formulating, reviewing, and approving ESG-related policies, strategies, and objectives;
	Reviewing the Company's annual ESG report;
	Reviewing environmental, social, and governance-related risks that have a significant impact on the Company.
Board Office(Leading Department)	Monitoring ESG-related policies, regulations, standards, and trends;
	Coordinate the interests of all stakeholders within the Company;
	Review the annual list of major ESG issues;
	Monitor the implementation of the Company's ESG initiatives;
	Guide the collection of information for the annual ESG report.
Functional Departments and Affiliated Enterprises(Executive Level)	Implement specific board resolutions related to ESG work;
	Collaborate with the Board of Directors' Office to collect information related to ESG reports.

Stakeholder Engagement

Based on its business and operational characteristics, Zhonglu Oceanic identifies stakeholders including government and regulatory agencies, shareholders and investors, customers, employees, partners, and the community. It establishes diverse and regular communication mechanisms to promptly understand the expectations of each party, respond to their concerns, and create value for all stakeholders.

Stakeholders and Engagement Channels

Stakeholders		Engagement Mechanism and Form	Company Response
	Government and Regulatory Authorities	Implementation of various documents and meeting resolutions Work reporting, reports	Compliance with laws and regulationsAccepting regulatory inspections

	Shareholders and Investors	Corporate regular reports and announcementsSurvey questionnairesShareholders' MeetingsEarnings Briefing	Information compliance disclosureEnhanced risk managementGood operating performanceShareholder rights protection
	Customers	Customer visits and researchCustomer satisfaction surveys	Product quality and innovationProviding quality service
	Employees	Staff and Workers' CongressDaily work engagement	Protecting employee rightsFocusing on employee developmentCaring for employee well-being
	Partners	Strategic partnershipsNegotiations and consultations	Committed to integrity and mutual benefitMaintaining good cooperation
	Community	Environmental impact assessmentParticipating in social welfare activities	Environmental and ecological protectionCharitable donations

Identification of Material Topics

Zhonglu Oceanic regularly conducts the identification and assessment of agenda topics. By analyzing domestic and international ESG evaluation standards, benchmarking against industry peers, aligning with annual business priorities, and considering changes in the external environment, it has identified 26 material topics. These topics are analyzed and assessed from the two dimensions of "impact materiality" and "financial materiality", resulting in the formation of the 2025 dual-materiality topic matrix.

High Zhonglu Oceanic 2025 Dual Materiality Issue Matrix

Fulfilling Green Responsibilities Building an Ecological Civilization

\- Responding to Climate Change 21 - Enhancing Environmental Management 25 - Optimizing Resource Utilization 26 - Strengthening Pollution Prevention and Control 28 - Ecosystems Conservation 30 - Practicing Green Operations 32

UN Sustainable Development Goals Response

6 CLEAN WATER AND SANITATION

AFFORDABLE AND CLEAN ENERGY

12 RESPONSIBLE CONSUMPTION AND PRODUCTION

14 LIFE BELOW WATER

15 LIFE ON LAND

Responding to Climate Change

Zhonglu Oceanic actively implements the "Dual Carbon" goals, establishes and improves a management system to address climate change, enhances climate change governance and strategic planning, and identifies and thoroughly analyzes climate change-related risks and opportunities faced by the Company to enhance its sustainable development capabilities.

Governance

To advance the implementation of climate-related strategies and risk management, the Company has incorporated climate risk management into its overall risk management framework, continuously deepening efforts related to climate change and green sustainable development.

Strategy

Based on its own business characteristics, combined with global trends in distant-water fisheries, as well as relevant domestic and international climate change regulations and policies, the Company identifies climate change-related risks and opportunities. By adopting corresponding measures, it actively addresses the risks and opportunities brought about by climate change.

Climate Change Risk Response

Climate Change Opportunity Management Zhonglu Oceanic Climate Risk and Opportunity Management Process

Impact, Risk, and Opportunity Management

The Company proactively addresses climate change by establishing risk management processes, regularly identifying, assessing, prioritizing, and monitoring climate-related risks and opportunities to enhance the climate resilience of its strategic and operational activities.

Identification

Assessment and Prioritization

Regularly identify climate-related risks and opportunities that may have a significant impact on the Company's operations or development strategy in the short, medium, or long term.

Analyze the likelihood and potential impact of climate-related risks and opportunities, and prioritize them based on these dimensions.

Monitoring

Regularly monitor climate-related management measures and assess their implementation to ensure timely response to climate-related risks and capitalization on opportunities.

Metrics and Targets

To ensure the effective implementation of climate change action strategies and risk management, the Company has integrated emission reduction and carbon reduction into all aspects of daily operations and continuously monitoring GHG gas emissions.

Enhancing Environmental Management

Zhonglu Oceanic strictly complies with the "Environmental Protection Law of the People's Republic of China" and other relevant environmental laws and regulations, improves its environmental management system, prevents sudden environmental incidents, and safeguards ecological environmental security.

During the reporting period

Major environmental emergencies

Number of penalties imposed by environmental protection authorities

Improve the institutional system

The Company continuously improves its environmental protection regulations and management processes to enhance environmental management standards.

Long range fishing and maritime transportation segments

Zhonglu Haiyan and Zhonglu Shipping implement the "Regulations on the Management of Pollution Prevention for Ships", clearly designating the Engine Department to guide, supervise, and inspect pollution prevention efforts. Each vessel establishes a pollution prevention management team, with the captain serving as the primary person responsible for pollution prevention, overseeing environmental management on board.

Cold storage processing and trading segment

Zhonglu Food implements internal systems such as the "Environmental Protection Responsibility System" and the "Environmental Protection Management", clearly designating the corporate legal representative as the primary person responsible for environmental protection, who is fully accountable for Zhonglu Food's environmental protection efforts. The Safety Office oversees the daily supervision and management of environmental protection work.

Environmental Compliance Management

The Company strictly adheres to environmental management standards and improves environmental compliance management. Its subsidiary, Zhonglu Food, has been rated as the "Green Enterprise" in the environmental credit evaluation conducted by the Shandong Provincial Department of Ecology and Environment for several consecutive years.

During the reporting period

In accordance with the "Regulations on the Administration of Pollutant Discharge Permits", Zhonglu Food has completed the renewal process for the "Pollutant Discharge Registration for Stationary Sources", obtained the registration acknowledgment, and finalized the pollutant discharge registration.

In accordance with the regulations of the "Urban Drainage and Sewage Treatment Ordinance", Zhonglu Food has obtained the "Permit for Discharging Urban Sewage into the Drainage Network", which remained valid throughout the reporting period.

In accordance with the requirements of the "Administrative Measures for the Recordation of Emergency Response Plans for Sudden Environmental Incidents in Enterprises and Public Institutions (Trial)", Zhonglu Food obtained the recordation form for the emergency response plan for sudden environmental incidents from the competent department in January 2025, and conducted emergency drills in accordance with the requirements of the emergency response plan in October 2025.

In accordance with the requirements of environmental monitoring, Zhonglu Food regularly conducts environmental monitoring.

Optimizing Resource Utilization

Zhonglu Oceanic adheres to the concept of green development, utilizes resources frugally and intensively, and takes concrete actions to contribute to the construction of a beautiful China.

Energy Management

The Company strictly complies with laws and regulations such as the "Law of the People's Republic of China on Energy Conservation", deepening the application of energy-saving and emission-reduction technologies. Across all segments of the industrial chain, including industrial park construction, overseas fishing, marine transportation, and cold-chain processing trade, it continuously improves resource utilization efficiency and reduces operational costs, achieving a balance between economic and environmental benefits.

In the construction of the Zhonglu Marine Innovation Industrial Park project, the Company introduced China's first air compression refrigeration unit applied in the ultra-low temperature cold storage industry. After the project is operational, it can effectively reduce carbon emissions.

The Company strictly monitors fuel consumption of overseas fishing and marine transport vessels to achieve cost reduction and efficiency improvement. First, it dynamically tracks oil price trends, optimizes routes and operational plans, reduces idle sailing and standby time, and enhances fuel efficiency. Second, it strengthens the use of shore power, encouraging effective utilization of shore-based electricity when vessels and docks are equipped with such facilities, thereby reducing fuel consumption during berthing. Third, it promotes the upgrading of electrical connection equipment, optimizes energy efficiency, and effectively lowers the comprehensive energy consumption level during berthing periods.

The Company's cold storage processing and trading segment continues to implement energy-saving and carbon-reduction technological upgrades. During the reporting period, Zhonglu Food invested 260,000 yuan in the individual quick freezing machine renovation project, saving over one million yuan in costs.

Lean Production Management

Zhonglu Food has been continuously carrying out energy-saving work in technology, management, and other areas, striving to be a pioneer in green development. In terms of management energy conservation, it scientifically schedules the production rhythm of each workshop and precisely matches the operating load of compressors, saving nearly 100,000 yuan in electricity costs from this single measure alone. In terms of technical energy conservation, it has implemented energy adjustment renovations on process air conditioning units, transformed the production and domestic hot water supply into a multi-energy complementary model combining "solar energy, air energy, and air conditioning waste heat recovery", and promoted LED lighting. Through multiple measures, energy conservation and consumption reduction have achieved significant phased results.

Water Resource Management

The Company complies with laws and regulations such as the "Law of the People's Republic of China on the Protection of Water Resources" and the "Regulations on Water Conservation", strengthening water management and actively promoting the recycling of water resources. During the reporting period, the water consumption intensity of Zhonglu Food decreased by 8% year-on-year.

During the reporting period

Fresh water used

154826 tons

Water intensity

2.12 tons per 10,000 yuan of revenue

Note: Data is reported by Zhonglu Food.

Tap the Full Potential of Water Conservation

Zhonglu Food, addressing the difficulty of frequent water changes during winter raw material thawing, leveraged local conditions by introducing ground temperature to preheat the thawing area, making the water temperature significantly higher than that of tap water. After the modification, the daily number of water changes was greatly reduced, saving approximately 15 cubic meters of water per day on average. This not only lowers water costs but also alleviates the pressure on wastewater treatment, achieving a synergistic improvement in both production efficiency and environmental benefits.

Strengthening Pollution Prevention and Control

Zhonglu Oceanic actively promotes ecological civilization construction, strengthens the management of exhaust gas, wastewater, and waste generated from business operations such as shipping and cold storage processing, standardizes the configuration of environmental protection facilities and their daily operation management, and effectively reduces waste emissions. During the reporting period, Zhonglu Oceanic and its major controlled subsidiaries were not included in the list of enterprises required to disclose environmental information in accordance with the law.

Ship Pollution Prevention and Control

The Company strictly implements international and domestic conventions and regulations on the prevention of pollution from ships, fully enforces internal management rules such as the "Ship Anti-pollution Management Rules", ensures that each vessel legally obtains all necessary anti-pollution certificates, reinforces pollution prevention responsibilities, and achieves green and compliant operations.

Exhaust gas

The Company strictly complies with laws and regulations such as the "United Nations Convention on the Law of the Sea", the "Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution", the "Law of the People's Republic of China on the Protection of the Marine Environment", and the "International Convention for the Prevention of Pollution from Ships" (MARPOL). In response to the International Maritime Organization (IMO) sulfur cap regulations, the Company achieves a 100% utilization rate of low-sulfur fuel oil, ensuring that sulfur oxide emissions from its vessels meet the requirements of MARPOL Annex VI, global Emission Control Areas (ECAs), and IMO emission standards. As of the end of the reporting period, all company vessels hold the "International Air Pollution Prevention Certificate" (IAPP).

Wastewater

The Company has formulated and implemented internal management documents such as the "Domestic Wastewater Treatment Device and Safety Operating Producers" and "Instructions for Safe Operations of the Oil-Water Separator" to regulate the management of domestic sewage and oily wastewater from ships.

The Company's vessels are equipped with sewage collection and treatment facilities. Sewage is discharged according to regulations after being disinfected through pulverization. The vessels are fitted with oily water separators to treat oily wastewater, and any discharge of oily water must comply with the relevant requirements of Annex I of the MARPOL Convention, with the Oil Record Book properly documented. The Company's vessels have established "Shipboard Oil Pollution Emergency Plan" (SOPEP), which outlines emergency response measures for oil pollution incidents. The vessels legally hold the "International Oil Pollution Prevention Certificate" (IOPP) and the "International Sewage Pollution Prevention Certificate" (ISPP), thereby strengthening the pollution prevention and control defense line.

Waste

The Company strictly complies with the requirements of MARPOL Annex V. The vessel has developed and implemented the "Ship Garbage Management Plan", which specifies management procedures for garbage reduction, collection, storage, and disposal. The "Garbage Record Book" is properly filled out to prevent marine pollution from ship-generated garbage.

Pollution Prevention in Cold Storage Processing

The Company places high importance on pollution prevention and control in the cold storage processing and trading segment, establishing a stringent pollutant emission management system. During the reporting period, Zhonglu Food achieved 100% compliance in wastewater and exhaust gas emissions, with a 100% hazardous waste disposal compliance rate.

Exhaust gas

During the operation of the Company's refrigerated processing business, the factory's wastewater treatment station generates odorous gases, with the main pollutants being ammonia, hydrogen sulfide, and odor concentration. Zhonglu Food has installed an alkaline spray tower, sodium hypochlorite spray, and activated carbon adsorption device to effectively remove pollutants from the exhaust gas, reduce emission concentrations, and minimize the impact on the atmospheric environment.

Wastewater

The Company's cold storage and processing operations generate production wastewater during raw material thawing, processing, and cleaning, with key pollutants including COD, SS, ammonia nitrogen, total phosphorus, and animal and vegetable oils. Zhonglu Food has established the "Water Resource Protection and Wastewater Management Procedures" and the "Wastewater Control Procedure" to standardize the wastewater treatment process. After collection, the production wastewater is sent to the plant's wastewater treatment station, where it undergoes treatment via a regulating tank, hydrolysis acidification, and aerobic processes before being discharged into the municipal sewer system upon meeting standards. During the reporting period, Zhonglu Food regularly commissioned third-party monitoring agencies to conduct water quality tests at the discharge outlets, and the results showed that all pollutants met the discharge standards.

Waste

During the Company's cold storage and processing operations, general solid waste and hazardous waste are generated. The general solid waste mainly includes leftover materials, discarded auxiliary materials, and waste packaging, while the hazardous waste primarily consists of waste activated carbon. Zhonglu Food has developed and implemented the "Waste Management Procedures" and "Waste Operation Guidelines" to standardize waste management. General solid waste is collected by category and promptly cleared by dedicated personnel into designated containers, with strict adherence to post-shift cleaning procedures. Recyclable materials are sent to waste recovery points, while non-recyclable waste is taken to designated storage locations. Hazardous waste is stored in a temporary hazardous waste storage area, with standardized management records maintained, and is disposed of by qualified entities. During the reporting period, the compliance rate for hazardous waste disposal was 100%.

Ecosystems Conservation

Zhonglu Oceanic strictly complies with domestic and international fisheries management regulations, implementing marine ecological protection measures throughout the entire fishing production process. It proactively reduces its impact on marine life, consistently carries out the protection of rare marine species and the conservation of fishery resources, and contributes to the sustainable development of fishery resources.

Ballast Water Management

The Company strictly complies with relevant regulations and international standards, including the "Regulations on the Supervision and Administration of Ship Ballast Water and Sediment Management" and the "International Convention for the Control and Management of Ships' Ballast Water and Sediments". For ships carrying ballast water, the Company develops and implements a "Ballast Water Management Plan" to ensure compliant treatment of ballast water and prevent the invasion of alien species.

Sustainable Fisheries

The Company closely follows the green development direction of the overseas fishing industry, commits to protecting local marine biodiversity, establishes a full-process green fishing control and management system, and solidifies the foundation for the long-term sustainable development of overseas fisheries.

Scientific fishing

Implement a quota system under marine conservation and management measures, strictly control the total fishing catch.

Participate in and support the establishment and maintenance of marine protected areas.

Conduct biodiversity monitoring and research to understand the impact of fishing activities on the ecosystem, and dynamically optimize and adjust fishing operation plans and time periods.

Anti-entanglement protection

Strictly regulate the selection and design of netting and rope materials, eliminating components that are prone to entanglement and loosening.

Implement the "zero discharge" policy, refine the detailed rules for waste classification and disposal, and ensure all discarded fishing gear is uniformly collected and transported back to ports for compliant and harmless treatment.

Establish a real-time reporting and closed-loop tracking and recovery mechanism for lost fishing gear, set up a mandatory reporting system for lost fishing gear, and attempt to recover lost gear when conditions permit, so as to mitigate its long-term harm to the marine environment. Promote the green retrofitting of ships, reduce pollutant emissions from ship operations, and balance ecological protection with low-carbon production.

Bird-scaring ropes

Wildlife conservation

Shark conservation

Strictly comply with shark protection regulations, resolutely prohibit illegal practices such as finning and discarding shark bodies at sea, and ensure the complete retention of shark carcasses throughout the entire process.

Strictly implement the prohibition on catching protected shark species. If a protected shark is accidentally caught during operations, release it alive immediately while ensuring operational safety.

Replace with non-metallic flexible branch lines in the designated operational sea area to facilitate sharks' autonomous escape and further enhance shark protection efforts.

Seabird conservation

Strictly follow the operational standards by properly deploying standard bird-scaring ropes during long-line setting operations, effectively preventing seabirds from approaching the bait and reducing accidental entanglement and bycatch of seabirds.

Based on the actual conditions of the sea area, operation times should be reasonably adjusted, with priority given to nighttime longline fishing during periods of high seabird activity. This should be combined with practical measures such as heavy-duty leader lines and blue-dyed bait to comprehensively reduce the probability of seabird injury.

Sea turtle conservation

Fully achieve 100% coverage of large compliant circle hooks in all longline fishing areas, significantly reducing the probability of sea turtle bycatch and deep hook injuries from the source, and continuously improve the survival rate of sea turtles in the wild.

Upgrade the supporting materials for the safe handling of sea turtles on fishing vessels, and equip all fishing vessels with a complete set of sea turtle safe release tools, including different sizes of release hooks, line-cutting pliers, turtle-righting devices, and turtle-lifting ropes.

Regularly conduct specialized practical training for crew members to master the skills of safely and quickly handling accidentally caught sea turtles, minimizing harm to the turtles, and ensuring their timely and safe release.

Install and use certified Turtle Excluder Devices (TEDs) or nets with escape openings of sufficient size as required by fishing methods, allowing accidentally trapped sea turtles to escape.

Sea turtle release device

Resource Conservation

During its operations, the Company complies with the deployment of voluntary high-seas fishing moratoriums and seasonal marine fishing bans, actively carries out resource conservation efforts to avoid overfishing, strictly adheres to the red line of resource exploitation, and protects marine fishery resources.

Comply with control requirements

Strictly adhere to the established fishing cycles and total catch control requirements, precisely delineate fishing grounds and operational periods, and ensure the full recovery of fishery resources during the breeding season.

Comply with the fishing moratorium

Strictly enforce fishing moratorium regulations for different sea areas and fishing types, and proactively reduce high-d-epletion fishing methods to allow marine species such as fish to reproduce and restore their populations.

Comply with catch minimum catch size limits

Comply with the minimum catch size, control fishing intensity, and scientifically regulate the intensity of fishing operations.

Practicing Green Operations

Zhonglu Oceanic integrates green development into the entire production and operation process, actively promotes the reduction of packaging materials and low-carbon daily office operations, organizes environmental protection training and energy-saving publicity activities, and continuously improves the level of sustainable development of the enterprise.

Green Packaging

Adhering to ecological priority and green development, the Company has been steadily advancing packaging reduction efforts. It strengthens production process control, strictly complies with the requirements of the "Regulation of Executive Packaging of Commodities - Food and Cosmetics", and manages excessive packaging practices to effectively reduce material waste and environmental pollution. The Company standardizes the implementation of green procurement requirements, prioritizing suppliers that use eco-friendly packaging materials, and jointly promotes the innovation and application of green packaging technologies.

Green Office

The Company actively promotes the concept of green office practices, striving to enhance employees' environmental awareness, cultivate good eco-friendly habits, and encourage collective efforts to create a low-carbon, sustainable work environment.

• Advocate the use of energy-saving lamps, ensuring that lights are turned off when leaving a room or at any time they are not needed.

• Regularly check faucets for drips and use sensor faucets.

Implement double-sided printing and waste paper recycling, promote paperless office, adopt OA office systems, and increase the use of electronic documents and emails.

• Employees are advised to use public transportation for commuting.

Green Culture

The Company places great emphasis on environmental protection training and energy-saving promotion, adopting a combination of online and offline methods to educate employees on environmental knowledge, organize environmental protection public welfare activities, and enhance employees' environmental awareness in both work and daily life.

During the reporting period

Number of participants in environmental training

174 person-times

Average environmental training hours per person 1 hour

Note: Data is reported by Zhonglu Food.

Zhonglu Shipping organized theme-based event for Energy Conservation Promotion Week and Low-Carbon Day

Zhonglu Shipping has carried out multidimensional publicity and education campaigns around the themes of "Energy Conservation and Efficiency Enhancement, leading the way with 'new' vitality" and "Carbon Pathway Pioneer, Green Power for the Future". By posting posters and playing videos offline to create an atmosphere, pushing materials online through work groups for full coverage, and organizing themed seminars to share energy-saving experiences, the company has effectively enhanced the green cultural identity and action awareness of all employees, promoting the deep internalization and active implementation of green and low-carbon concepts.

Zhonglu Haiyan Organized "Dual Reporting" Community Environmental Protection Volunteer Service Activities

Zhonglu Shipping Organized Theme-based Event for Energy Conservation Promotion Week and Low-Carbon Day

Zhonglu Food Organized a theme activity of "Protecting Old Greenery, Adopting New Greenery" for the Arbor Day

Cultivating Strong Senses of Responsibility Driving High-quality Development

• Strengthening Compliance Management 37 • Total Quality Management 39 • Service Quality Improvement 43 • Responsible Supply Chain 45 • Promoting Industry Development 46 • Innovation-driven Development 49

11 SUSTAINABLE CITIES AND COMMUNITIES

12 RESPONSIBLE CONSUMPTION AND PRODUCTION

Strengthening Compliance Management

Zhonglu Oceanic strictly complies with the conservation and management measures of tuna fishery management organizations in various ocean regions, including the Western and Central Pacific Fisheries Commission (WCPFC), the Indian Ocean Tuna Commission (IOTC), and the International Commission for the Conservation of Atlantic Tunas (ICCAT), and comprehensively strengthens compliance management. During the reporting period, the Company's compliance capacity and performance significantly improved, effectively fulfilling the responsibilities of a responsible state-owned fishery enterprise. Fulfilling International Conventions

The Company has established a sound performance management system, implemented a responsibility system for performance evaluation, assigned specific responsibilities to individuals, and linked them to the performance assessment of subsidiaries. This ensures that all distant-water fishing operations fully comply with the regulations of regional fisheries management organizations, and that the Company's awareness and capability in meeting international fisheries conventions are achieved.

\- Strictly implement measures for fishing ban periods, quota control, and reduction of endangered bycatch (sharks, manta rays).

\- Fishing vessel identification complies with international standards of regional fisheries management organizations.

Electronic fishing logs are fully covered with standardized reporting.

The vessel position monitoring system operates effectively around the clock.

2025 National Compliance Assessment for Pelagic Fishery

Data is submitted promptly and accurately.

Zhonglu Oceanic scored

The transfer of catches is compliant and orderly.

108.5 points

Zhonglu Haiyan scored

106 points

Strengthening Awareness of Contract Fulfillment

The Company continues to enhance its performance evaluation and management standards in distant-water fisheries. It invites industry experts to conduct specialized training and actively participates in various training programs on distant-water fisheries management and performance evaluation organized by regulatory authorities and industry associations. This strengthens compliance awareness and improves overall management capabilities and international compliance performance in distant-water fisheries, contributing "Zhonglu" strength to building a strong maritime province.

Promoting Learning through Competition to Enhance Practical Skills

To promote the improvement of international compliance capabilities and safety production management levels among distant-water fishing enterprises, the Department of Agriculture and Rural Affairs of Shandong Province, in collaboration with the Provincial Federation of Trade Unions, jointly hosted the 2025 Shandong Province Distant-Water Fishing Enterprise International Compliance and Safety Production Skills Competition. The competition covered five events: theoretical knowledge, fishing log submission, boarding inspection response, fire drill, and on-board hazard identification, comprehensively assessing the comprehensive quality and practical capabilities of the participating teams. The teams from Zhonglu Oceanic and Zhonglu Haiyan demonstrated unity, collaboration, and a competitive spirit, both winning second prizes in the fierce competition, showcasing the companies' solid foundation and outstanding strength in the field of distant-water fisheries.

Total Quality Management

Zhonglu Oceanic focuses on quality management, establishing a comprehensive quality control system covering the entire process from raw material procurement, production processing, quality inspection, traceability management, to product delivery, thereby improving product quality, ensuring food safety, and safeguarding consumers' legitimate rights and interests.

Improving Product Quality

The Company places great emphasis on the quality management of its cold-processed products, strictly adhering to laws and regulations such as the "People's Republic of China Product Quality Law" and the "People's Republic of China Import and Export Commodity Inspection Law" and continuously improving its product quality control capabilities. Zhonglu Food implements the Chief Quality Officer system, establishes the "Food Safety and Quality Manual", and optimizes quality control processes through internal audits, management reviews, and other methods. It scientifically sets annual quality targets, which are broken down and assigned to each department, and regularly monitors the achievement of these targets to ensure that quality management is effectively implemented and delivers tangible results.

Goal

Achievements in 2025

Product Qualification Rate:99.5%

Achieved the target requirements

Ensuring Food Safety

The Company regards food safety as its lifeline, strictly complies with laws and regulations such as the "Food Safety Law of the People's Republic of China" and the "Implementation Regulations of the Food Safety Law of the People's Republic of China", promotes its subsidiaries to actively pursue food safety management system certification, improves internal management systems, and elevates food safety management to a new level.

Food safety system certification

Zhonglu Food has taken the lead in the industry by obtaining internationally recognized certifications such as BRCGS, IFS, and HACCP, with its food safety management system and quality control reaching advanced international standards.

Zhonglu Food achieved excellent results in the combined BRCGS and IFS audit.

In May 2025, Zhonglu Food achieved outstanding results in the combined unannounced BRCGS and IFS audits, earning an A+ certificate for the BRCGS audit and a high-level certification for the IFS audit.

BRCGS and IFS utilize unannounced audits, comprehensively covering the entire industrial chain from raw material procurement, production and processing, to storage and transportation of finished products. BRCGS A+, as a premium certification level, demonstrates that the company's food safety management meets high international standards. The IFS High-Level certification signifies the company's outstanding performance in key areas such as HACCP system, product traceability, and foreign object management. Zhonglu Food will take this as a new starting point, continuously improving management levels, upholding food safety standards, providing consumers with higher quality and safer products, and contributing more to the development of the industry.

Improving the management system

Zhonglu Food has established a quality management system in accordance with the "BRCGS Global Standard for Food Safety", "IFS Food Standard", "HACCP System and Its Application Guidelines", the Codex Alimentarius "General Principles of Food Hygiene", the "U.S. Seafood HACCP Regulation (21 CFR 123.1240)", and the "Safety and Hygiene Requirements for Export Food Production Enterprises". The quality management system documentation includes three levels: the quality manual, procedure documents, and other quality documents, providing institutional safeguards for food safety.

Quality Manual

Food Safety and Quality Manual

Program file

"Good Manufacturing Practice" (GMP) "Sanitation Standard Operating Procedures" (SSOP) "HACCP Plan Verification Procedure" "Material Procurement Control Procedure" "Production and Service Control Procedure" "Raw Material Safety Control Procedure" "Allergen Control Procedure" "Pest Control Procedure" "Foreign Object Control Procedure" "Product Release Procedure" "Control Procedure for Management of External Personnel"

Other Quality Documents Including detailed work documents such as operating instructions, record forms, reports, etc.

Full-process control

Zhonglu Food carries out whole-process food safety control.

Source control

Develop and implement procedures such as the "Material Procurement Control Procedure" and "Raw and Auxiliary Material Acceptance Procedure" to inspect and accept raw materials. If non-conformities are found, corresponding measures will be taken to prevent non-conforming materials from entering the production process.

Production process

Prepare the "Hazard Analysis Worksheet" to analyze biological, chemical, physical, fraud, and intentional contamination hazards across the entire processing flow, including raw material inspection, thawing, slicing, and other steps, and establish effective control measures to eliminate or reduce food safety hazards to an acceptable level. Strictly implement the "Sanitation Standard Operating Procedures" (SSOP) to regulate cleaning, disinfection, and hygiene maintenance processes, preventing cross-contamination. Develop the "Non-Conforming Product Control Procedure" to contain and handle non-conforming products identified during monitoring, ensuring that defective products do not flow into the next process.

Enhanced Inspection

Monitor products, raw and auxiliary materials, semi-finished products, and production processes in accordance with the "Laboratory Testing Procedures". Laboratory testing indicators include 11 items such as total bacterial count, coliforms, Escherichia coli, and Staphylococcus aureus, to strengthen the food safety defense line.

Number of tested batches 6742 times

Recall Management

Establish a product traceability system and a product recall mechanism, strictly implement internal procedures such as the "Product Recall or Withdrawal Procedure", "Product Identification and Traceability Control Procedure", and "Positive Result Traceability and Handling Procedure", and conduct regular product traceability drills. During the reporting period, no product recall incidents occurred.

Employees holding valid certificates to work

The Company strictly adheres to the regulations requiring food processing industry employees to hold valid health certificates, establishes a comprehensive employee health certificate file management system, and regularly organizes health certificate physical examinations and renewals to ensure that the health status of on-duty employees meets job requirements.

During the reporting period

Proportion of on-the-job employees holding valid health certificates

100%

Food Safety Culture

The Company fosters a positive food safety culture by regularly conducting food safety training and promotional activities to enhance food safety awareness.

During the reporting period

Number of food safety training sessions conducted

23 sessions

Number of participation in food safety training

587 person-times

Total duration of food safety training 1863 hours

Case

Strengthen Quality and Safety Training, Build a Solid Foundation for Product Quality

Zhonglu Food places great emphasis on quality management, formulating a comprehensive annual training plan to systematically enhance employees' professional expertise in quality management across all aspects. Taking the "3·15" International Consumer Rights Day as an opportunity, the company conducted training focusing on two core issues: product quality and food safety. This initiative further strengthens employees' quality awareness and sense of responsibility, ensuring the delivery of safe and high-quality products to consumers, and fulfilling the company's social responsibility and quality commitment through concrete actions.

Service Quality Improvement

Zhonglu Oceanic adheres to a customer-centric service philosophy, prioritizes customer experience, establishes and improves a customer service response mechanism, standardizes the handling of customer complaints and feedback, conducts regular customer satisfaction surveys, continuously optimizes products and services, and enhances brand influence.

During the reporting period

Number of customer complaints

Number of customer complaints resolved

Customer complaint resolution rate

100%

Customer Service Management

The Company has developed and implemented the "Customer Complaint Handling Procedure", the "Control Procedure for Major Quality Incidents and Complaints", and the "Customer Satisfaction Survey Procedure". A customer complaint handling team has been established, along with a dedicated customer service hotline to receive quality complaints. Satisfaction surveys are conducted through customer visits, phone follow-ups, and questionnaires to understand customer needs and expectations, providing a scientific basis for product development and service improvement.

Goal

Achievements in 2025

Customer Satisfaction Rate: >96%

Achieved the target requirements

Provide High-Quality Products

The Company actively responds to the "Healthy China" strategy, continuously optimizing its product structure to build a high-quality product matrix covering all scenarios. During the reporting period, the Company achieved significant breakthroughs in product upgrades centered on diversified customization, committed to let more Chinese people to enjoy deep blue, green, healthy, and perfect tuna.

Shredded radish and fish paste

The Company precisely responded to customer customization needs and initiated the development of shredded radish and fish paste products in 2025. It established a closed-loop development path of "trial production - feedback - iteration", and after multiple process improvements, successfully delivered the finished product. With its delicate texture and stable quality, the product received high recognition from customers, successfully expanding the cooperation channels for customized products.

Grilled ice and crispy barbecue series

The Company is committed to flavor innovation, overcoming the development challenges of multi-flavor grilled ice and crispy barbecue. Taking the grapefruit flavor as a breakthrough, it deconstructed key parameters for flavor penetration and grilling shaping, completing the transformation from experimental formulas to mass production processes. Formal production was launched in March 2025, efficiently yielding 1.58 tons of grapefruit-flavored products, 5.2 tons of fruit and vegetable flavors, and 7.85 tons of garlic flavor. Through the strategy of "single-flavor breakthrough+multi-flavor replication", a differentiated product matrix was established, creating new revenue growth points for the Company and enhancing its market competitiveness.

Flame-encounter • tuna neck & tuna eye skewers: New product processing achieves effective results

The Company has been exploring the potential of high-value-added products. In 2025, it successfully completed the processing of new products, including Flame Encounter • Tuna Neck (Black Pepper Flavor) and Tuna Eye Skewers (Black Pepper Flavor) (Teriyaki Flavor). This not only enriched the product matrix but also effectively improved the comprehensive utilization rate of distant-water fishery resources, achieving a dual enhancement of economic benefits and resource value.

Responsible Supply Chain

Zhonglu Oceanic has established a sound compliance and sustainable management system for its cold storage and processing sector, implemented the "Procurement and Bidding Management Measures", "Supplier Management Procedures", and "Supplier and Subcontractor Evaluation Management Procedures". It conducts standardized management of the entire process for suppliers, including access, evaluation, dynamic assessment, risk control, and exit, continuously building a compliant, stable, and responsible supply chain system.

During the reporting period

28

Number of suppliers

Numbers of suppliers qualification reviews

28 times

Note: Data is reported by Zhonglu Food.

Supplier Management

The Company establishes a supplier qualification certification and evaluation system, sets standards for pre-qualification, selection, and continued use, regularly reviews the quality and after-sales service of materials (equipment) provided by qualified suppliers, and periodically adjusts and eliminates suppliers that do not meet requirements.

Supplier Access Management

Establish a scientific and rigorous supplier onboarding mechanism, developing procurement and access standards based on business needs and risk levels, while incorporating ESG requirements such as quality management, product safety, occupational health, environmental protection, and social responsibility into core access criteria.

According to the "Supplier Management Procedure", all suppliers and subcontractors must sign the "Social Responsibility Commitment Letter" before obtaining orders or signing contracts, committing to compliant employment practices, prohibiting child labor and forced labor, complying with labor, safety, and environmental regulations, and implementing supply chain social responsibility management requirements from the source.

Supplier Dynamic Assessment

Set priority control order based on the business importance and risk level of suppliers, implement dynamic assessment management by classification and grading. The procurement department shall uniformly communicate the Company's compliance and social responsibility requirements to suppliers, and regularly carry out assessment and supervision work according to the established control plan.

By utilizing both questionnaire surveys and on-site audits, the Company regularly reviews supplier performance, follows up on the implementation of corrective and improvement measures, establishes a dedicated supplier social responsibility file, and thoroughly retains assessment results, issue records, and improvement evidence to ensure full traceability throughout the process.

Incorporate supplier social responsibility performance into the annual management review, and conduct a supplier follow-up audit once a year to achieve regular and institutionalized supervision.

Supplier Optimization and Exit

Regularly conduct qualified supplier re-evaluations, continuously identify procurement quality risks, safety and environmental risks, and commercial risks. Implement a closed-loop management process of rectification, review, and removal for suppliers that fail to meet performance standards or comply with contractual obligations. When violations of commitments or company management standards are discovered, require suppliers to rectify and correct immediately. Upon verification of serious issues such as child labor, forced labor, or severe violations of labor laws, terminate the cooperation immediately. Suppliers with good reputations, high-quality services, stable product quality, and compliance with safety and environmental standards will be retained to maintain high-quality supply chain resources. Suppliers that fail to rectify issues and consistently fall short of standards will be decisively phased out to continuously optimize supply chain quality.

Supplier Risk Management

The Company adheres to full-process supply chain risk prevention and control, establishing a supply chain risk identification and management system centered on compliance operations, quality safety, environmental and occupational health, and social responsibility, thereby fostering a supply chain ecosystem based on shared responsibility and compliant mutual benefit.

Cooperation Access Evaluation Stage

Strictly adhere to the principles of fair competition and compliant cooperation, screen suppliers for compliance risks, labor risks, quality and safety risks, and environmental risks from the source, prevent high-risk entities from entering the supply chain, and ensure that cooperative partners have compliant qualifications and aligned values.

Performance Execution Supervision Stage

Throughout the entire contract performance process, dynamic supervision and management are implemented. The inspection system for incoming materials and equipment upon factory entry is strictly enforced. All purchased equipment, materials, and supplies are rigorously inspected in accordance with national and corporate safety, health, environmental, and technical standards. Non-conforming materials are handled as stipulated in the contract.

Promoting Industry Development

Zhonglu Oceanic actively implements the "Going global" strategy, widely engages in business exchanges with partners, participates in various domestic and international exhibitions, and works with all parties to achieve value sharing and mutual benefit.

Deepen International Cooperation

The Company maintains an open attitude to continuously strengthen its cooperative relationships with international partners, steadily advancing various international business exchanges and collaborations, and striving to achieve mutual benefit and common development.

The Company Held Cooperation Negotiations with Sagun in Turkey to Explore New Development of Tuna Business

In December 2025, the Company visited Sagun in Turkey for in-depth discussions on bluefin tuna processing and import business to China. The two sides explored leveraging their respective strengths to expand industrial cooperation, continuously strengthened ties with overseas enterprises, and further deepened practical collaboration in the tuna business.

Expand Circle of Friends

The Company upholds a cooperative philosophy of openness and mutual benefit, leveraging various domestic and international exhibitions to deepen practical cooperation in technology research and development, trade exchanges, and industrial chain collaboration, while continuously expanding its global network of partners.

Participation in the 31st Seafood Expo Global

From May 6 to 8, 2025, Zhonglu Oceanic participated in the 31st Seafood Expo Global in Barcelona, Spain. Zhonglu team reached several preliminary cooperation intentions with multiple European buyers and gathered first-hand information on international tuna market trends and consumption patterns, providing important references for the Company's future market strategy formulation.

Participation in the 13th China International Modern Agriculture Expo

From May 10 to 12, 2025, the Company participated in the 13th China International Modern Agriculture Expo and the 2nd Shandong Modern Agriculture Equipment Expo. Through a diverse product display and a special "Tuna Cutting Show", it attracted inquiries from potential clients, held discussions with multiple companies for collaboration, expanded its domestic and international markets, and promoted the popularization of tuna cuisine culture.

13th China International Modern Agricultural Expo

Exhibition at the 2025 Shenzhen International Fishery Expo

From May 15 to 17, 2025, the Company participated in the Shenzhen International Fishery Expo, adopting a "product + experience" strategy to showcase the full deep-processing chain of tuna products. Through on-site freshly prepared dishes and tasting interactions, it attracted widespread attention from global merchants, further expanded its international cooperation network, and conveyed the concept of sustainable fisheries.

First Participation in the Tokyo International Seafood & Fisheries Expo

From August 20 to 22, 2025, the Company participated in the Tokyo International Seafood & Fisheries Exhibition for the first time, engaging in in-depth discussions with key industry players on raw material supply, deep processing, and other areas, and reaching multiple cooperation intentions, thereby promoting the high-quality "Going Global" of China's tuna industry.

Tokyo International Seafood & Fisheries Expo

Participation in the 28th China International Fisheries & Seafood Expo

From October 29 to 31, 2025, the Company participated in the 28th China International Fisheries & Seafood Expo, leveraging on-site exhibits and live streaming to expand sales channels. It reached multiple cooperation intentions with European and American enterprises in areas such as deep processing and brand co-building, further strengthening industrial collaboration with international partners.

Innovation-driven Development

Zhonglu Oceanic adheres to the new development philosophy, systematically deploys medium- and long-term innovation tasks, continuously increases R&D investment, and optimizes the R&D talent team, injecting innovative momentum into the enterprise's high-quality development.

During the reporting period

R&D investment 6.4285 million yuan

Year-on-year growth 2.58%

Ratio of R&D investment to operating revenue 0.43%

Number of R&D personnel 20

Research and Development Innovation

The Company focuses on core areas such as distant-water fishing, maritime transportation, and deep processing of aquatic products. Leveraging collaborative innovation between industry, academia, and research, it concentrates efforts on tackling key technologies to continuously enhance its sustainable development capabilities.

Complete the research and application project of biodegradable materials in tuna p-urse seine fisheries, effectively reducing fishing costs and improving operational efficiency, while enabling natural degradation of fishing nets to support the development of a green marine ecosystem.

Successfully implemented the localization and upgrading project for marine auxiliary engines, generators, and power stations, reducing costs for spare parts, lubricating oil, fuel oil, and regular maintenance, lowering ship operating expenses, and achieving efficient, energy-saving, green, and low-carbon operations.

The demonstration project "Research and Industrialization of Key Technologies for Pre-paring High-DHA Tuna Oil", jointly led by Qilu University of Technology (Shandong Academy of Sciences) and Zhonglu Yuanyang (Qingdao) Industrial Investment Development Co., LTD, has been successfully selected as a key technology breakthrough project for Qingdao's marine industry in 2025.

Collaborating with Ocean University of China on research into tuna blood-derived peptides for blood and qi nourishment, the relevant findings have been published in international journals, laying a solid scientific foundation for the functional transformation of corporate products.

Intellectual Property Protection

The Company strictly complies with the "Patent Law of the People's Republic of China", the "Trademark Law of the People's Republic of China, the "Copyright Law of the People's Republic of China", and other relevant laws and regulations. It continuously improves its intellectual property management mechanisms, organizes and conducts specialized intellectual property training, and strengthens the intellectual property compliance awareness of all employees, effectively mitigating infringement risks and fortifying the protection of its independent innovation achievements.

During the reporting period

As of the end of the reporting period

Number of newly registered trademarks

1

Accumulated trade-mark quantity 78

Accumulated number of valid patents 18

Case

Special Training on Intellectual Property Organized

To enhance the intellectual property awareness of staff and strengthen risk prevention in related matters, the Company invited an expert to deliver a special lecture. The expert systematically explained the fundamental theories of intellectual property, elaborated on the main scope of intellectual property management, and deeply analyzed potential risks and brand layout strategies. Additionally, through typical industry cases, the lecture provided detailed insights into key areas such as trademark registration and protection, patent application processes, and international branding. This effectively enhanced the entire team's ability to protect intellectual property and prevent risks.

Digital and Intelligent Transformation

The Company is advancing in-depth digital and intelligent transformation, accelerating the construction of financial digital systems, and speeding up the development of smart fisheries, leveraging digital transformation to activate new quality productive forces in the industry.

Promote the launch of the financial shared center, upgrade the treasury management system, and enhance digital operation and management capabilities.

Zhonglu Food successfully developed "Smart Tuna Processing", achieving the application of automated and intelligent aquatic processing equipment and complete production lines, with production efficiency increased by over 300%.

Case

Won the Third Prize in the National Smart Ocean Big Data and Artificial Intelligence Application Innovation Competition

In December 2025, the Fourth National Smart Ocean Big Data and Artificial Intelligence Application Innovation Competition was successfully held in Sanya, Hainan Province. Zhonglu Oceanic's "Sea-Air-Submarine Integrated Multi-Agent Unmanned Detection Command System" integrates equipment such as drones, unmanned surface vehicles, and unmanned underwater vehicles, leveraging artificial intelligence large models and multi-agent technology as the core to build a three-dimensional intelligent operation system across air, sea, and underwater. This system achieves full-process intelligence in fish school detection, precision fishing, and resource monitoring, earning the third prize in the competition with its outstanding technical advantages.

Adhering to People-oriented Principle Jointly Creating a Harmonious Future

• Protecting Employee Rights and Interests 55 • Conveying Employee Wellbeing 61 • Strengthening Safety Defense 67 • Gathering Public Welfare Care 73

UN Sustainable Development Goals Response

1 NO POVERTY

3 GOOD HEALTH AND WELL-BEING

4 QUALITY EDUCATION

5 GENDER EQUALITY

8 DECENT WORK AND ECONOMIC GROWTH

10 REDUCED INEQUALITIES

11 SUSTAINABLE CITIES AND COMMUNITIES

Protecting Employee Rights and Interests

Zhonglu Oceanic strictly complies with relevant laws and regulations, including the "Labor Law of the People's Republic of China" and the "Labor Contract Law of the People's Republic of China", to safeguard employees' rights and interests in accordance with the law. It improves employee benefits, ensures smooth channels for employees to express their concerns, implements health protection measures, and continuously enhances employees' sense of belonging.

In 2025, the social insurance coverage rate and the labor contract signing rate both reached 100%.

During the reporting period

Zhonglu Food has passed BSCI certification.

Equal and Diverse Recruitment

The Company strictly complies with labor laws and regulations, adheres to lawful employment practices, and upholds open, fair, and just recruitment standards. It has established standardized hiring and onboarding procedures, eliminating discrimination based on gender, age, region, religion, or other factors. By leveraging multiple talent acquisition channels, the Company attracts talent, improves its employment system, and strengthens its talent pool.

During the reporting period

Newly recruited employees 26

Social recruitment

Campus recruitment

5

21

Compensation and Benefits Management

The Company has established a differentiated salary mechanism that links compensation with performance, promoting the refined implementation of compensation and benefits management. It has formulated policies such as the "Differentiated Management Plan for Basic Salaries of Senior Officers" and the "Dynamic Adjustment Plan for Performance-Based Salaries of Land-Based Employees in the Ghana Representative Office" to safeguard the rights and interests of crew members.

Improve regular salary adjustment rules and establish differentiated compensation assessment models for different positions.

The Employee Handbook has been developed to provide a detailed explanation of relevant policies, ensuring that employees fully understand their rights.

Pay social insurance and two housing funds for all employees in accordance with the law, and include additional diversified benefits such as holiday benefits, annual health check-ups, and other welfare programs beyond general entitlements.

During the reporting period

Paid vacation days per capita

Empowering Employee Growth

The Company continues to improve its talent management system, strengthen the construction of talent echelons, optimize the internal talent reserve structure, and stimulate employees' intrinsic development motivation, thereby laying a solid foundation for high-quality and sustainable business operations.

Improving institutional system

The "Promotion Management Measures for Frontline Managers at the Company Headquarters" and the "Selection and Appointment Measures for Headquarters Managers" have been introduced to smooth the promotion and development channels for onshore management personnel and to strengthen the talent pipeline.

The "Guidelines on Strengthening Employee Training" was issued to coordinate and promote the empowerment of all-staff training, and to build a hierarchical and categorized system for talent cultivation, management, and promotion.

Zhonglu Shipping has issued the "Management Measures for Two-Way Exchange and Training of Ship and Shore Personnel (Revised Edition)", the "Procedures for Crew Recruitment, Deployment, and Assessment", and the "Procedures for Newly Hired and Transferred Personnel to Familiarize with Job Responsibilities", standardizing the recruitment, deployment, assessment management of crew members, as well as the exchange and training of ship and shore personnel. Additionally, the "Interim Regulations on Communication Expenses for Shore-Based Management Personnel" has been formulated to refine logistical management support.

Innovating talent cultivation model

Carry out overseas post training programs by selecting three young employees to rotate and gain experience abroad, enabling young talents to hone their skills and grow in real-world scenarios, thereby fostering a positive incentive orientation.

Focusing on employee capability enhancement, we have established a tiered and categorized training system, innovated a multi-location collaborative onboarding training model, deepened on-the-job training through practical work, conducted diversified and targeted training based on core business needs, and regularly promoted overall employee competency improvement.

During the reporting period

Employee training sessions

208

Employee participated in training

5134 person-times

Employee training investment 67100 yuan

Total employee training hours 10064 hours

Case

Zhonglu Oceanic Held the 2025 New Employee Orientation Training

The Company conducted the 2025 New Employee Orientation Training, which featured a variety of courses on corporate culture, safety management, integrity education, and hands-on practice. Team-building activities and discussion sessions were also included to help new employees quickly integrate into the team.

Case

Zhonglu Food Launches In-depth Training on Core Tuna Technology

Zhonglu Food held the third session of its 2025 Business Skills Enhancement Series, titled "Tuna Product Processes and Category Explanations". This training session was led by the Company's senior workshop technical experts, focusing on key process nodes in production practice and common knowledge blind spots. It systematically enhanced employees' in-depth understanding of tuna raw material characteristics, processing procedures, and diverse category standards.

Advancing Democratic Management

The Company implements a normalized democratic management system, fully leveraging the role of employee representatives in democratic participation and oversight, ensuring their orderly involvement in corporate governance, and effectively safeguarding their democratic and political rights. In 2025, the Company successfully convened the Staff and Workers' Congress and completed the relevant election processes.

During the reporting period

Number of Staff and Workers' Congress held

Items or regulations r- viewed by the Staff a- nd Workers' Congress

Implementation rate of proposals from the Staff and Workers' Congress 100%

Protecting Occupational Health

The Company complies with The Maritime Labour Convention (MLC 2006), aligning with international standards to improve working conditions for oceangoing operations. It strictly implements domestic regulations on occupational disease prevention and control, and has formulated the "Labor Protection Supplies Management System" and the "Implementation Rules for Ship Health Management", building a comprehensive protective barrier for the occupational health of crew members.

Ensuring good physical health

Pre-employment physical examination and regular health check-ups

Standardize the entry medical examination process, and issue health certificates to those who pass the examination. Conduct quarterly on-duty health assessments using the medical equipment regularly available on board, and specifically prevent health risks unique to tropical navigation areas, such as parasitic infections and heatstroke.

Management of medical facilities and medications on board

In accordance with the "International Medical Guidelines for Ships", ensure the adequate provision of commonly used medications, basic medical equipment, and first aid kits. Improve the routine inventory management system to guarantee that medical supplies on board are complete in variety and compliant in condition, meeting the diverse diagnostic and treatment needs during ocean voyages.

Emergency drill and first aid skills training

Formulate detailed rules for ship emergency practical training, develop the "Regulations on Training and Drills for Emergency Response and Contingency Measures" conduct regular medical emergency drills, popularize first-aid practical skills among crew members, and strengthen response capabilities in frontline sudden injury or illness scenarios.

Infectious disease prevention and health management

Coordinate crew vaccination efforts in accordance with the epidemic prevention requirements of the routes traversed, with a focus on preparatory measures for high-risk overseas routes; routinely sanitize the living quarters, kitchen, and dining areas on board to maintain the ship's daily hygiene standards.

Fatigue management and reasonable shift scheduling

Work and rest standards are formulated in accordance with relevant international labor regulations, and a scientific shift scheduling model is implemented to ensure that crew members receive their legally mandated rest hours.

Protecting mental health

Psychological screening and intervention

During the onboarding phase, standardized psychological assessments are used for preliminary screening; during the voyage, anonymous psychological surveys are conducted to promptly detect crew members' emotional fluctuations and implement follow-up interventions as needed.

Improve the living environment on board

Improve onboard Wi-Fi, fitness areas, recreational activity rooms, reading spaces, and other supporting facilities. Regularly organize collective activities such as sports meets and fun team-building events to enrich crew members' daily leisure during long voyages and alleviate the stress of being at sea.

Family Contact and Social Support

Maintain stable and unimpeded long-distance communication channels to facilitate crew members' daily contact with their families; arrange appropriate family visits during the ship's anchorage window to strengthen the crew's external emotional support.

During the reporting period

Zhonglu Haiyan conducted pre-departure medical examinations for the crew of five dock repair vessels, organized personnel to complete health checks at designated institutions and obtain health certificates, with a total of 43 crew members undergoing medical examinations throughout the year.

Zhonglu Food entrusts qualified testing institutions to regularly conduct testing for occupational disease hazard factors, achieving a 100% pass rate in these tests.

Case

Remote Medical Consultations Safeguard the Health of Crew Members

Zhonglu Shipping, in collaboration with Qingdao Fuwai Hospital, has established a "Maritime Medical Bridge" remote diagnosis and treatment platform, creating an integrated shore-sea medical security system. The platform provides round-the-clock consultations, emergency medical care, and real-time health monitoring, complemented by psychological counseling services. This ensures the simultaneous protection of both the physical and mental health of crew members, innovating the health management model for ocean-going seafarers.

Case

Conduct Employee Mental Health Management Training

Zhonglu Shipping conducted a special training session on mental health, titled "Sunshine Workplace, Heart and Mind Together". The training adopted a three-pronged approach, combining centralized learning, online resources, and offline science popularization, to disseminate knowledge about psychological adjustment. It also aimed to improve the long-term psychological care mechanism and effectively enhance employees' emotional management abilities.

Conveying Employee Wellbeing

Zhonglu Oceanic adheres to a people-centered development principle, implementing diverse care measures based on employees' various needs. By organizing various employee activities, it balances work and life, enhances job satisfaction, and fosters mutual progress between employee well-being and the Company's long-term development.

Assisting Employees in Need

The Company cares about the physical and mental well-being, living conditions, and family situations of its employees. It provides necessary assistance to employees in need, promptly addresses the difficulties they face, and effectively alleviates the financial pressure on struggling employees.

During the reporting period

Investment subsidy funds

Care projects implemented

Visits and condolences

113800 yuan

4 items

Overseas employee children's education reward

247 person-times

person-times

Note: Data is reported by Zhonglu Haiyan.

Case

Spring Festival Assistance and Relief Activities for Needy Employees

In January 2025, the Company organized a visit and condolence activity for employees in need. Company representatives went to the homes of these employees, carefully learning about their family life, health conditions, and children's education, patiently listening to their concerns and needs, and offering condolence payments and New Year care supplies.

Case

"Shanhe Fund" of Zhonglu Food Donates to Employees in Need

Zhonglu Food, relying on the "Shanhe Fund", allocated donation funds and conducted visits for two employees facing severe life and illness hardships, effectively alleviating their families' financial burdens while providing heartfelt emotional support. The Company adheres to a warm-hearted assistance approach, diligently ensuring the welfare of employees in need. During the reporting period, it aided a total of five employees through the Shanhe Fund, disbursing 5,000 yuan in assistance funds.

Conduct Employee Care Activities

The Company prioritizes the physical and mental well-being of its employees by organizing a variety of healthy and uplifting employee activities. These initiatives enrich employees' leisure time and foster a warm, friendly workplace atmosphere.

Balancing work and life

The Company is committed to creating a warm and harmonious working and living environment for its employees, actively building platforms for cultural and sports activities to enrich their spiritual lives outside of work and alleviate work-related stress.

Special care for special groups

The Company focuses on providing a comprehensive caring support system for special groups, implementing humanistic care measures across multiple dimensions, balancing workplace responsibilities with family needs, and enhancing employees' sense of belonging.

Caring for veteran Party members

Caring for the crew

Assisting Crew Members' Children in Advancing Education

Case

The Company has strengthened its care and concern for frontline crew members, establishing systems such as "three must visits" to overseas employees' families and rewards for children's academic achievements. Zhonglu Haiyan and Zhonglu Shipping have provided scholarships to 13 children of crew members who have been admitted to higher education institutions, along with blessings and encouragement.

Zhonglu Shipping Conducted Frontline Visits to Ship Crew

On the eve of the Spring Festival, Zhonglu Shipping dispatched representatives to overseas ports to express their greetings to the crew on duty, distribute festive supplies, assess the operation of ships and the mental state of crew members, and commend and encourage advanced ships with excellent performance. This further narrowed the gap between the ship and the shore, boosting the enthusiasm of the front-line team.

Case

Representative Office of China-Ghana Conducting Spring Festival Condolence Activities

The Company continues to improve its regular caring support mechanisms, steadily enhancing the sense of belonging and cohesion among overseas crew members. During the Spring Festival, Representative Office of China-Ghana visited the port to extend greetings to crew members on duty, delivering holiday supplies, carefully inquiring about their work and living needs, and coordinating efforts to address various practical difficulties.

Care for female employees

Case

Organizing a Series of Activities for International Women's Day

To pay tribute to the power of women and convey corporate warmth, the Company organized a variety of themed activities around International Women's Day, showcasing the spirited demeanor of female employees and rallying the driving force of women's progress.

Strengthening Safety Defense

Zhonglu Oceanic adheres to the principle of putting people and life first, prioritizing safety and prevention as the core. It continues to strengthen the concept of safety development, enhance the implementation of safety production responsibilities, intensify efforts to investigate and rectify potential hazards, improve the safety awareness and capabilities of all employees, and complete the provincial party committee's inspection rectification work on safety production with high quality and standards, firmly safeguarding the defense line of safety development.

During the reporting period

Work-related accidents: Number of injuries and deaths due to work-related accidents: Number of working days lost due to work-related injury

Safety production investment

Total number of safety management experts in the expert database

5.819 million yuan 31

Safety Management System

The Company is committed to improving its institutional framework, reinforcing accountability across all positions, and establishing a long-term mechanism for regular safety production. By focusing on multiple dimensions—such as building a safety organization structure, iterating safety management systems, and enhancing the quality and efficiency of system certification—it comprehensively strengthens the foundation of safety production management.

System certification

The Company proactively promotes the development of safety management systems among its subsidiaries, achieving a notable industry demonstration effect. In 2021, Zhonglu Haiyan completed the establishment of a safety management system and obtained certification from the China Classification Society, becoming the third distant-water fishery enterprise in China to receive this certification. In January 2025, it successfully passed the annual review, confirming the system's compliance and effectiveness. In 2025, Zhonglu Shipping passed the annual audit of its safety management system, which now covers eight vessels.

Organizational structure

The Company strictly implements the safety production responsibility system and establishes a safety management organizational structure with full participation. The Company's Work Safety Committee is composed of members of the Company's leadership team, principal heads of affiliated enterprises, heads of Oceanic Management Departments and Risk Control Department, as well as Union representatives. It clearly defines safety responsibilities at all levels and positions, appoints full-time safety management personnel, and ensures that safety responsibilities are transmitted and implemented at every level.

System building

The Company strictly complies with laws and regulations such as the "Law of the People's Republic of China on Work Safety" and the "Shandong Province Regulations on Work Safety". It has established internal policies and standards, including the "Work Safety Management Measures", "Work Safety Management System", the "Production Safety Accident Emergency Response", the "Work Safety Responsibility List", the "2025 Annual Work Safety Plan", the "2025 Annual Work Safety Inspection Plan", "Three-Year Special Governance Action Plan for Work Safety at Its Roots (2024-2026)", and the "Reward System for Internal Reporting of Accident Hazards". The Company continuously improves its work safety system, encourages employees to actively participate in safety supervision and management, enhances their strong sense of responsibility for the Company's safety as if it were their own home, and deepens the investigation and resolution of accident hazards.

"Work Safety Management System"

Case

Zhonglu Shipping Conducts Specialized SMS Training

All departments shall strictly conduct training for ship and shore personnel in accordance with the requirements of the SMS documents, strengthen education and training on crew members' professional

Safety Production Target Management System Safety Production Meeting Management System Management System for the Withdrawal and Use of Safety Production Funds Management System for Safety Production Education and Training Safety Production Risk Grading Management and Control System Management System for Identifying and Rectifying Hazards in Production Safety Accidents Management System for Reporting and Investigating Production Safety Accidents Safety Production Archives Management System

sional competence and work ethics, enhance internal management of crew qualification for assignment and job transfer, carry out SMS system training and safety skills training, ensure crew competency, fully leverage the crew's sense of responsibility and initiative, and continuously improve the crew's safety awareness and comprehensive capabilities.

Equipment support

The Company aligns with the "International Life-Saving Equipment Regulations (LSA Rules)" and industry safety standards, equipping its vessels with a full set of specialized and standardized safety assurance equipment.

Fire-fighting and life-saving equipment

\- The ship is fully equipped with basic life-saving supplies such as lifeboats, life rafts, lifebuoys, life jackets, and emergency rations, along with professional fire-fighting equipment including fire pumps, dry powder extinguishers, carbon dioxide extinguishers, foam extinguishers, thermal protective clothing, and air cylinders.

Personal Labor Protective Equipment

\- Uniformly equip on-duty crew with full sets of labor protection supplies, including safety helmets, non-slip work shoes, protective workwear, safety goggles, high-altitude safety belts, and safety ropes, to effectively prevent safety hazards such as impact injuries, falls from heights, and external object injuries.

Emergency medical support facilities

\- A professional medical room is equipped with medical stretchers, disinfection supplies, tourniquets, first aid kits, and various common medicines, enabling rapid response to crew members' sudden illnesses or injuries.

Navigation and Communication Equipment for Maritime Use

\- Each vessel is equipped with a high-precision ship positioning system, GPS navigation system, and AIS collision avoidance system. They are also fitted with professional VHF and SSB communication devices, the Silk Road satellite, search and rescue radar transponders, emergency satellite beacons, and two-way radios. Some vessels are additionally equipped with global satellite communication systems.

Ship Safety Management

The Company continues to strengthen the safety management and control of ships throughout their entire lifecycle. By improving institutional regulations, enhancing routine supervision, and conducting emergency drills, it ensures comprehensive protection for ship navigation, maritime operations, and the personal safety of crew members.

Crew Safety Assurance System

Responsibility Document

Regulations on the Health and Medical Treatment of Crew Members Onboard for Illness or Injury

Ship Safety Activity Day System

Ship Anti-Violence Measures

Regulations for Ship Safety Monitoring and Inspection

Safety Regulations for Ship Operations

Regulations on the Working and Rest Hours of Crew Members

Regulations on Training and Drills for Emergency Deployment and Response Actions

Normalized daily vessel control

The Company implements a normalized working mechanism for safety management in workshops and on vessels, with each subsidiary conducting monthly reviews of key safety inspection items for workshops and ships.

Special Safety Rectification Campaign

Focusing on high-risk ship operation scenarios, the Company continues to carry out targeted hazard rectification, strictly penalizes non-compliant operations, thoroughly eliminates high-risk operational hazards, and continuously enhances the intrinsic safety level of ship operations.

Strengthening Maritime Risk Prevention and Control

The Company strictly implements measures to prevent violence and piracy on vessels, and regularly condugency drills. Through ship-shore coordination and practical simulation exercises, it continuously enhances crew members' capabilities in emergency evasion, rapid response, and coordinated operations. In 2025, the Company experienced no incidents of pirate attacks on vessels or crew hostage-taking.

Implementing Working Safety

The Company implements safety production inspections, establishing a linkage mechanism involving cross-checks among subsidiaries of SDGT, headquarters supervision, and self-inspection and self-correction. It regularly receives supervisory inspections from the Provincial State-owned Assets Supervision and Administration Commission (SASAC), SDGT, and local commerce departments, forming a closed-loop management of "inspection-register-rectification-review".

During the reporting period

Inspection received from Provincia ISASAC

time

Inspections received from SDGT

times

12

Mutual inspections conducted

Supervise and inspect subordinate enterprises

14 times

Inspections received from the Provincial Department of Commerce and the Laoshan District Bureau of Commerce

2 times

The Company has developed special safety production assurance plans for major holidays and sensitive periods such as New Year's Day, the Spring Festival, and the National Two Sessions, increasing patrol frequency and strengthening emergency duty. No safety accidents occurred during key periods throughout the year, ensuring the smooth transition of production and operations.

During the reporting period

Safety inspections conducted

110 times

Safety hazard inspections conducted

284 items

Safety hazard rectification rate

100%

Safety Culture Development

The Company organized a series of safety culture activities around themes such as Safety Production Month, First Lesson at Work, Fire Safety Publicity Month, and National Security Education Day. It incorporated safety production education into new employee training, promoting the deep-rooted understanding of safety concepts.

During the reporting period

Safety production training conducted

Number of participants in safety production training

Safety emergency drills conducted

216 sessions

Number of participants in emergency drills

4706 person-times

485 sessions

11692

Strengthening safety culture construction: Carry out activities such as "First Lesson at Work", "Work Safety Month", and "National Fire Prevention Publicity Month"; on the first working day after the Spring Festival, organize the headquarters and supervise all affiliated enterprises to seriously organize and conduct the "First Lesson" on work safety for starting work, covering a total of 1,082 employees.

Zhonglu Oceanic Organized Series of Themed Activities for National Security Education Day

In order to thoroughly implement General Secretary Xi Jinping's important discourse on the holistic approach to national security and fully carry out the strategic deployment of the 20th National Congress of the Communist Party of China on national security work, Zhonglu Oceanic organized a series of themed activities for National Security Education Day, aimed at further strengthening employees' awareness of national security and fostering a strong atmosphere of safeguarding national security.

\- Zhonglu Haiyan adopted a three-in-one approach of "knowledge quiz+theoretical guidance+case simulation" to carry out National Security Education Day publicity activities, organizing staff and workers to participate in a national security knowledge quiz. The employee participation rate has reached 100%.

\- Zhonglu Shipping organized all employees to watch a national security education themed video through an online platform. In key areas such as the office exhibition boards and multimedia screening zones, it carefully arranged national security education bulletin boards, posted thematic posters and knowledge infographics, to popularize national security knowledge among employees.

\- Zhonglu Food organized a special lecture themed around core contents such as the "Constitution of the People's Republic of China" and the "National Security Law of the People's Republic of China", fully utilizing various platforms including LED screens, company bulletin boards, and WeChat to actively carry out publicity activities for the National Security Education Day, further strengthening the safety awareness and legal concepts of all employees.

Gathering Public Welfare Care

Zhonglu Oceanic actively fulfills its social responsibilities, conveying positive social energy through concrete actions. It enthusiastically participates in charitable activities such as the "Compassionate One-Day Campaign", collaborates with communities on environmental co-construction and volunteer services, and adheres to local operations overseas by hiring local employees, contributing care and support to society.

Public Welfare and Charity

The Company is dedicated to public welfare and charity, actively participating in various donation activities, and supporting the development of public welfare initiatives and grassroots cultural construction through concrete actions.

Zhonglu Food Launched "Love Helps Farmers" Initiative

Upon learning that continuous rainy weather in Shandong had led to a grape sales slump, Zhonglu Food launched special "Love Helps Farmers" initiative, purchasing over 400 jin of unsold grapes to help fruit farmers ease their urgent situation. The grapes were also distributed as a benefit to employees, achieving a win-win for both farmer assistance and worker welfare, thereby contributing solid strength to promoting local harmony and stable development.

Community Activities

The Company proactively focuses on community needs, carries out various activities, and promotes community co-construction and shared benefits.

Zhonglu Haiyan Conducted Themed Volunteer Activity

To promote the spirit of the "May Fourth Youth Day" and fulfill social responsibility, Zhonglu Haiyan, in collaboration with its partner Huidu Community, established a youth volunteer service team. They actively engaged in community-based volunteer services such as environmental protection and elderly assistance, cleaning up neglected sanitary corners and popularizing knowledge on waste sorting. These efforts effectively improved the community environment and contributed to the building of a harmonious community.

Overseas Responsibilities

The Company actively recruits local labor, driving community employment through concrete actions and fulfilling its social responsibilities in a down-to-earth manner. The representative office has long adhered to localized operations, directly employing over 200 local staff in Ghana, while indirectly supporting related employment for more than a thousand people, including loading and unloading teams, security teams, and transport fleets. Through hands-on training, it has imparted professional skills such as fishing techniques and vessel management, cultivating a large number of local fisheries talents and making positive contributions to Ghana's economic and social development.

During the reporting period

Employment of local staff

242

Foster employment across the entire supply chain

500

Note: Data is reported by Zhonglu Haiyan.

Activating Governance Momentum Consolidating the Foundation of Development

\- Improving Corporate Governance 77 - Compliance-based Operation 79 - Adhere to Business Ethics 81

UN Sustainable Development Goals Response

Improving Corporate Governance

Zhonglu Oceanic strictly adheres to the requirements of laws, regulations, regulatory rules, and relevant normative documents, including the "Company Law of the People's Republic of China", the "Securities Law of the People's Republic of China", the "Listed Company Governance Guidelines", and the "Shenzhen Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 1 — Standardized Operation of Main Board Listed Companies". The Company continuously improves its modern corporate governance system, facilitates two-way communication channels in the capital market, standardizes information disclosure management, and ensures stable operations and high-quality sustainable development through high-level governance.

Enhancing Governance Efficiency

Taking the Year of Governance System Enhancement as a key opportunity, the Company has solidly advanced the preparation of the "15th Five-Year Plan", reinforced the concept that "management drives efficiency", formulated and issued the "Detailed Rules for Strategic Planning Management", and systematically revised core regulations including the "Company Charter", "Rules of Procedure for Shareholders' Meetings", "Rules of Procedure for the Board of Directors", and "Detailed Rules for the Board Audit Committee". It has continuously improved internal operational mechanisms, effectively transforming management efficiency into development momentum.

Optimizing the governance structure

In accordance with the relevant requirements of the China Securities Regulatory Commission, the State-owned Assets Supervision and Administration Commission of Shandong Province, and SDGT, the Company and its affiliated enterprises have fully abolished the Board of Supervisors and supervisors. The Audit Committee of the Board of Directors now exercises the powers and functions of the Board of Supervisors, and the governance structure has transitioned from the "three committees and one management layer" to the "two committees and one management layer".

Board of Directors

Nominating Committee

Strategic Committee

Audit Committee

Board Governance

The Company continuously strengthens the independence and diversity of its Board of Directors, consistently optimizing the composition of board members. The board comprises professionals with diverse backgrounds in distant-water fisheries operation and management, state-owned capital operation, finance and auditing, and legal compliance. These complementary areas of expertise effectively enhance the scientific nature of decision-making, supporting the Company's stable and sustainable operations.

During the reporting period

Investor Relations Management

The Company places great emphasis on investor relations management, establishing multiple communication channels such as a dedicated investor hotline, Interactive Easy platform, and the official website to maintain efficient and transparent communication with investors. It organizes performance briefings and participates in the 2025 Qingdao Region Listed Companies Online Investor Group Reception Day and the 2024 Annual Performance Briefing, fully addressing investor inquiries and responding to their concerns, thereby continuously upholding a positive image in the capital market. No investor complaints were reported during the reporting period.

During the reporting period

Calls from investors answered 16 times

Easy IR platform responses

Earning briefing meeting held 1 times

Standardizing Information Disclosure

The Company strictly complies with relevant laws, regulations, and the stock listing rules of the Shenzhen Stock Exchange, adhering to the core principles of truthfulness, accuracy, completeness, timeliness, and fairness. It regulates the management of information disclosure and rigorously implements the confidentiality control of insider information.

During the reporting period

Regular reports issued

4

Interim announcements issued

63

No incidents of penalties resulting from violations of information disclosure regulations occurred

Compliance-based Operation

Zhonglu Oceanic takes risk control and compliance as its core focus, revising key management systems such as the "Measures for Compliance Review of Major Business Decisions", the "Detailed Rules for the Implementation of Overseas Investment Management", and the "Measures for Post-Investment Project Evaluation". It continuously strengthens the internal control and comprehensive risk management system, rigorously enhances audit supervision, standardizes financial control, and solidifies the foundation of corporate compliance operations.

Internal Control Management

The Company places great emphasis on the construction of its internal control system and routine management, continuously improving the internal control management system based on actual operations, and regularly coordinating the headquarters and all subsidiaries to comprehensively carry out self-assessment of internal controls.

During the reporting period

Internal control inspections conducted

During the reporting period, the "2024 Internal Control Evaluation Report" was completed on schedule. Through a comprehensive self-inspection and assessment, no major internal control deficiencies were identified, and the overall internal control operation remained stable and compliant.

10 times

Audit Work

The Company is committed to establishing a standardized and long-term internal audit mechanism, comprehensively advancing various audit tasks throughout the year, and fully leveraging the supervisory function of audit.

Issued the "Measures for the Management of Internal Audit Work" and the "Detailed Rules for the Implementation of Economic Responsibility Audits", and revised the "Measures for the Management of Rectifying Problems Found in Internal Audits".

Cooperate with external audit institutions to complete the Company's 2024 internal control audit, issue an unqualified "Internal Control Audit Report", and disclose it in a timely manner.

During the reporting period

Internal control audit conducted

1 time

Special audits conducted

3 times

External audit received

2 times

Financial Management

The Company strictly complies with current national fiscal and tax laws and regulations, standardizes the implementation of internal financial systems such as the "Related Party Transaction System" and the "Raised Funds Management System", revises the "Travel Management Measures", continuously improves the financial management system, rigorously strengthens tax control throughout the entire process, and steadily enhances the level of financial management.

During the reporting period

Total Tax Paid

1,5109400 yuan

Adhere to Business Ethics

Zhonglu Oceanic has always adhered to the principle of integrity in operations, conscientiously upheld high-standard business ethics, continuously deepened the management of integrity and the cultivation of a culture of integrity, steadily improved the multi-channel complaint and reporting mechanism, established a closed-loop of internal and external collaborative supervision, resolutely opposed all forms of unfair competition, and actively maintained a regulated, orderly, fair, and just market development environment.

Strengthening Integrity Management

The Company continuously strengthens integrity management and the cultivation of an integrity culture, regularly organizing anti-corruption warning education and integrity training. It closely monitors key periods such as holidays to issue integrity reminders, ensuring thorough and detailed daily anti-corruption publicity and education. Meanwhile, it improves the overseas supervision system by appointing integrity officers in overseas institutions, extending the reach of supervision abroad. This reinforces the integrity defense line for all employees, fostering a corporate atmosphere of transparency, integrity, and ethical conduct.

During the reporting period

On-site warning education sessions held

7 times

Integrity training sessions held

5 times

Integrity training hours 550 hours

New employee integrity training coverage rate 100%

Complaint and Reporting Mechanism

The Company fully publicizes multiple complaint and reporting channels, including telephone, on-site visits, email, and written correspondence. It continuously ensures unimpeded internal and external supervision and reporting pathways, while synchronously standardizing the handling process for petitions and complaints. This enables efficient reception and closed-loop resolution of various petition requests, steadily addressing matters related to petitions, complaints, and reports.

Meanwhile, strictly implement requirements related to the confidentiality of petition letters and the protection of whistleblowers' rights and interests, rigorously prevent the disclosure of information about petitioners and whistleblowers, strictly prohibit any acts of retaliation, and effectively safeguard the legitimate rights and interests of all stakeholders in supervision, appeals, and petition feedback.

Zhonglu Oceanic Reporting Channel

Phone: 0532-55719267

Email: zljj@zofco.cn

Address:

Building 1, Guoxin Financial Center, No. 31 Xianxialing Road, Laoshan District, Qingdao, Shandong Province

Carrying Out the 2025 Public Petition Work Regulations and Legalization of Petition Work Publicity Month Campaign

Zhonglu Oceanic, focusing on the theme of "People's Petition, Legal Protection", coordinated and supervised its affiliated enterprises to carry out a series of activities for the Law on Petition Work and the Legalization of Petition Work Promotion Month. Through multi-dimensional, full-coverage publicity and training, it deepened the long-term publicity mechanism for petition work, further improved the reach and awareness of the Law among frontline staff and all employees, and continuously promoted the effective implementation of the legalization and standardization of petition work.

Anti-Unfair Competition

The Company has always strictly adhered to laws and regulations such as the "Advertising Law of the People's Republic of China", the "Anti-Unfair Competition Law of the People's Republic of China", and the "Provisions on the Prohibition of Infringing Trade Secrets". It resolutely opposes various unfair competition practices, including low-price vicious competition, spreading false negative information, maliciously poaching industry personnel, and illegally stealing trade secrets, and consciously upholds a fair and orderly market competition environment.

Vision for the Future

2026 marks the start of the 15th Five-Year Plan and is a critical year for Zhonglu Oceanic to solidify its foundation, improve quality, and drive transformation. The Company will always keep the nation's interests in mind, adhere to the goal of building a world-class demonstration enterprise in ocean fishing, bravely undertake the mission of a state-owned enterprise in building a strong marine province, and promote the high-quality and sustainable development of the ocean fishing industry.

Adhering to the leadership of Party-building, we will continuously improve the modern corporate governance system, rigorously enforce compliance and risk control, strengthen investor relations and talent team building, and solidify the foundation for long-term corporate operations. Persisting in innovation-driven development, we will deepen industry-university-research collaboration, tackle core technologies such as long-range intelligent equipment and high-value processing of tuna, and accelerate the digital and high-end transformation of the industry. Committed to green and low-carbon transformation, we will promote full-chain green production and operations in line with the dual carbon goals, strictly implement marine biological protection and fishing moratorium measures, and continue to safeguard the marine ecosystem. Upholding brand leadership, we will further polish the "Zhonglu Tuna" brand image, strengthen both online and offline efforts, expand into domestic and international markets simultaneously, and enhance global brand influence. Fulfilling the responsibilities of a state-owned enterprise, we will comprehensively protect the rights and interests of crew members, strictly maintain safety production standards, regularly carry out marine science education and public welfare services, and strive to "let deep-blue, green, healthy, and perfect tuna to more Chinese people".

Standing at a new historical starting point, Zhonglu Oceanic will thoroughly implement General Secretary Xi Jinping's important instructions on state-owned enterprises, closely follow the theme of high-quality development, open up new frontiers with the spirit of "daring to break through", scale new heights with the momentum of "innovation", and fulfill the mission with the work style of "solid action". By integrating corporate development into the strategic deployment of building a maritime power, we will write a new chapter of high-quality development through solid action and persistent effort!

Postscript of the Report

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