顺丰控股(002352)公司公告顺丰控股:2023年度可持续发展报告(英文)新浪财经

AbouttheReportAssurancestatementPolicyListKeyPerformanceIndicatorIndexReaders’Feedback

EmpoweringtheTalentTeamBuildingtheLineofSafetyBuildingResponsibleChainTogetherShoulderingSocialResponsibilitySociety

P055-P096

StandardizingCorporateGovernanceStrengtheningRiskControlManagementAbidingbyBusinessEthicsEnsuringInformationSecurity

Governance

P015-P031

Environment

P032-P054

CreatingGreenLogisticsPromotingCircularEconomyProtectingtheEnvironmentGreenOfce

PrefaceGovernanceStrategyRiskManagementMetricsandTargets

ForewordtotheReport

Chairman’sMessageAboutSFSustainabilityManagement

2023S.F.HOLDINGSUSTAINABILITYREPORT

Chairman’sMessage

AboutSF“S.F.HoldingisthelargestintegratedlogisticsserviceproviderinChinaandAsia

andthefourthlargestintheworld.

acrossfivelogisticssub-segmentsincludingexpress,freight,coldchain,intra-cityon-demanddelivery

andsupplychain

,andthemarketleaderinAsia

acrossfourlogisticssub-segmentsincludingexpress,freight,intra-cityon-demanddelivery

andinternationalbusiness

inAsia.Lookingahead,theCompanyiscommittedtobecomingtheleadinggloballogisticscompanyconnectingAsiaandtheworld.TheCompanywillsolidifyitsmarketleadershipinChinaandcontinuetoexpanditspresenceinAsiaandglobally;rapidlyreplicateitsprovendomesticknow-howtooverseasnetworks,andexpandgloballybyleveragingitswell-recognizedbrand,leadingcostadvantagesandintegratedlogisticsservicecapabilitiestodrivethesustainableandhealthygrowthoftheCompany,soastobecomethego-tologisticspartnerofglobalbusinesscustomersandretailcustomerstofostershared-growthandco-createenduringvalue.

AccordingtotheFrost&Sullivanreport,intermsofrevenuein2022

Amongthird-partyintra-cityon-demanddeliveryserviceproviders

Amongnon-state-ownedindependentthird-partysupplychainsolutionproviders

AmongtheintegratedlogisticsserviceprovidersinAsia

LargestinAsiaIntegratedLogisticsServiceProvider

ExtensiveScaleUndisputedLeadershipPremiumBrandNo.1inAsiaExpress,LTLFreight,Intra-cityOn-demand,InternationalNo.1inChina

Express,LTLFreight,Coldchainlogistics,Intra-cityOn-demand,Supplychain

No.1CustomerSatisfactionforExpressServicesinChina4thLargestGlobally

14yearsinarow

CoreValuesCorevaluesarethevaluestandardsandbasicfaiththatSFersmustbelievein,guidingSFerstheapproachestorealizethecorporatevision.

IntegrityandresponsibilityDedicationtoemployees’successDedicationtocustomers’successInnovationandinclusivenessPursuitofexcellenceInSF,allpeopleshalladheretotheprincipleofintegrityandresponsibility,takededicationtoemployees’successanddedicationtocustomers’successastheirowntasks,alwaysbeinnovativeandinclusive,pursueexcellenceandcreateabetterfuturetogether.

Tobuildatrulydigitalizedeco-systemwithourpartnersTodriveforglobalexcellencywithourcustomersTostriveforcommonprosperityandabetterfutureforallForthesociety,SFisabenchmarkthatcontinuestocreateexcellentsocialvalue.Forourcustomers,SFisthepreferredpartnerofallcustomers.FortheCompany,SFisaleadingplayeringlobalsmartsupplychains.Forouremployees,SFisapromisingplatformforglobaltalentstopursueexcellence,achievedreamsandtakeprideinone’scareer.

SFcultureForthirty-oneyears,wehavebeenstrivingforprogress,andeveryseasonhasbeenfruitful.Timeandagain,thethornsandbreakthroughsengravedintherapiddevelopmentofSF,sothatthecompanyhasbuiltacorporatecultureimprintedwiththebrandofSF.ForSF,corporatecultureisnotonlyabelief,butalsoacommitmentandpractice.ItisreflectedinthewordsanddeedsofallSFemployees,andinallSF’sbusinessconduct,andhasbecomeastrongspiritualforcethatisdeeplycastinthecohesion,competitivenessandvitalityofSF.CorporateVisionCorporatevisionisthegoalandblueprintofSF,navigatingthedevelopmentdirectionofSFers.

TeamCultureSF’steamculture,derivedfromSF’svision,corevaluesandcorporateculturewithorganizationalcharacteristics,guidesSFtovictory.

Winthegame;teamworkIdentifytheweaknessesandmakeimprovementPromotethecapableones;coach;sunshineTheCompanyislikeateam,allthemembersgathertowinforcommongoal.Theylearnandgrowhere,coordinateandcooperatewitheachother,trainandfighttogether.Thehonoroftheteammeanspersonalachievementofeachmember.

CorporateSpiritCorporatespiritistheteamqualityandspiritualoutlookthatSFersdemonstrateinpractice,andistheportraitofSFersandthepopularimageofSF.

EqualityandrespectIntegrityPragmatismTreatothersandhandleaffairsinprincipleofequality,respect,integrityandpragmatism.TheseCorporateSpiritsarethepracticesofSFvaluesandalsothepublic’smostintuitiveperceptionofSF.

2023HonoursandawardsrelatedtoSFSustainableDevelopmentAwardsforSustainableDevelopment

Namedto“FortuneChinaESGInfluentialListing”(in2yearsconsecutively)

CCTV-2’s“ChineseESGListedCompaniesVanguard100”

Caijing’sCaijingAward“SustainableDevelopmentInclusiveAward”in2023

TheTimeWeekly’s“ListedCompaniesESGExemplaryEnterpriseAward”in2023

ChinaTimes’s“ESGPractice

ExcellentCases”in2023

CorporateDonorAwardinthe

12thChinaCharityAwards

ChinaAssociationforPublicCompanies“BestPracticesinESGfor

ListedCompanies,”“BestPracticesinCorporateGovernanceforListedCompanies,”and“BestPracticesfortheBoardofDirectorsofListedCompanies”in2023

ChinaGreenPoint’s“GreenPointAwardforSustainablePractices”

in2023

Stockstar’s“ESGNewBenchmark

EnterpriseAward”and“ESGInvestmentValueList”in2023

Wind’s“Top100BestESG

Practices”forChineseListed

Companiesin2023

CharityProjectAwardinthe12thChinaCharityAwards(SFWarmthandCareProgram)

ChinaCorporateGovernanceExperts50Forum“ChinaListed

CompaniesESGTOP50(Non-

Financial)in2023”

AnnualprogressonUNSustainableDevelopmentGoals(SDGs)GovernanceEnvironment

Thereare2femaledirectorsamongthemembersoftheBoardofDirectors,accountingfor28.6%ofthetotalfemalerepresentationontheBoard.In2023,SFcarriedouttargetedupdatestoriskscenariosand

formulated26riskresponseandcontrolplans.In2023,SFconductedspecializedrisktrainingcoursesforatotal

ofover86,400hours,achievinga100%coverageratefornew

employees’specializedtrainingaboutrisk.Overthepastthreeyears,SFhasachieveda100%coveragerate

forconductinginternalauditsofbusinessethicsatalloperational

sites.In2023,SForganized20offlineanti-corruptiontrainingsessions,

achievinga100%coveragerateamongemployees.Thetotal

durationofanti-corruptioneducationforemployeeswas70,073

hours,andthesigningrateforthe“Anti-CorruptionCommitment

Letter”amongemployeesreached99.0%.In2023,SFTechnologyobtainedISO27001,theauthentication

ofinformationsecuritymanagementsystemandISO27701,the

authenticationofprivacyinformationmanagementsystem.Asoftheendof2023,SFhadledorparticipatedinthe

developmentof5nationalstandardsandindustrystandardsrelated

todatasecurity,ofwhich3nationalstandardshadbeenformally

issued.

In2023,SFachievedacarbonefficiency

of41.1tCO

e/millionrevenue,representinga15.3%improvementcomparedtothecarbontargetbaselineyear(2021).Andthecarbonfootprintpershipmentwas730.9gCO

e/parcel,adecreaseof15.1%comparedtothecarbontargetbaselineyear(2021).In2023,SFindependentlydevelopedtheindustry’sfirst

shipment-levelcarboncalculationmodel,whichaccuratelycalculatesthecarbonemissionsgeneratedbyeachshipmentinvarioustransportationstagesusingdifferentmodesoftransportationbasedontheactualbusinessdata.Asoftheendof2023,SFhaddeployedover31,000newenergy

vehicles,covering243cities.Asoftheendof2023,14photovoltaicprojectsin

industrialparkshadbeensuccessfullyputintooperation,

withatotalinstalledcapacityof64MW.Thephotovoltaicpower

generationin2023reached18.39millionkWh,reducingGHG

emissionsby10,229tCO

e.In2023,SFreducedpaperusagebyapproximately43,000tons,

plasticusagebyapproximately162,000tons,andGHGemissionsbyapproximately164,000tCO

ethroughpackagingreduction

measures.In2023,SFreducedGHGemissionsbyapproximately540,000tCO

ethroughgreenpackaginginitiatives.In2023,SFcompletedtheR&Dofarecycledformulaandproducts

for“DoubleEasy”(easytorecycle,easytoregenerate)plasticbagsinShanghai,addingupto30%recycledresin(PCR)whilemaintainingexcellentperformance.Itmetthenationalstandardrequirementsforexpressbagsandwasawardedanexcellentratingcertificatefor“PlasticProductEasytoRecycleandEasyto

RegenerateDesignCertification”.

In2023,SFlaunchedtheindustry’sfirstpilotprojectfor

theclosed-looprecyclingandregenerationofplasticpackagingwasteinShanghai,withover880,000“Double

Easy”packagingbagsdistributed.Thetotalamountofrecyclingexceeded1.1tons.Asoftheendof2023,SFhadjointlyplantedover823.5acresofcarbon-neutralforestswithenterprises,employees,andcustomers,plantingover600,000treesintotal.Itisestimatedthatthesetreeswillabsorbover110,000tonsofcarbondioxideduringtheirgrowthinthefuture.

ThisisthecarbonefficiencydataofSFonly,excludingKerrylogisticsnetwork

limited.

SocietyServices

Bytheendof2023,SFhasextendeditsservicenetworkforagriculturalproductproductionandmarketingtocoverover

2,700county-levelcitiesnationwide,encompassingmorethan6,000characteristicagriculturalproducts.In2023,wetransported

approximately4.58milliontonsofcharacteristicagriculturalproducts.In2023,SFsupportedanexteriortrainingprogramforemployeeswithaninvestmentofoverRMB4.6million.Atotalof21,445employeesobtainedacademiccertificatesthroughthe“SFSupportsYourUniversityEducation”program.In2023,SFassistedmorethan20,000employeesandtheirfamiliesinneed,withatotalreliefamountofapproximately

RMB11.61million.

In2023,SFdidnotexperienceanymajorfireaccidentsor

majorcasualties.Theaccidentrateforeveryonemillionparcelsdecreasedby15.1%comparedto2022.In2023,SFconductedassessmentsofthesafetyproductionsystem

fortheentirenetwork.55%ofregionsand100%ofdistributionareas’safetyproductionsystemunderwentassessmentsbytheheadquarters.In2023,SFachieveda100%signingrateforsafetymanagement

agreementswithcontractorsandconductedon-sitesafetyinspectionsfor321contractors.In2023,SFconductedatotalof96,000safetytrainingsessions

ofdifferenttypes,covering100%ofemployeeswithsafetyeducation.Thenumberofemployeesholdingsafetyqualificationsreached940.In2023,SFconductedatotalof13,000firefightingsafety

emergencydrills,withacumulativeparticipationof440,000people.In2023,thesigningrateforintegrityagreementswithsuppliersreached100%.In2023,SFspentatotalofRMB106milliononpublicwelfare,

organizingatotalof155publicwelfareactivitieswith8,861participants,andatotalvolunteerservicedurationof34,948

hours.

In2023,theSFLotusEducationAssistanceProgramsponsored

13,718students,withatotalscholarshipofRMB31.19million.Bytheendof2023,theSFWarmthandCareProgramhadassisted

21,379needychildrensufferingfromseriousillnessesororphans,providinghumanisticcareservicesto35,803childrenandtheirfamilies.

SFhascreatedahighlyrealisticandefficientlogisticsdigitaltwinwithhighalgorithmverificationefficiency,findingoptimaldecision-makingsolutionsfornumerousscenariosandimprovingthelogisticsoperationalefficiencyinvariousaspectsoftherealworld.TheSFEzhouHubhasanautomatedsortingequipmentlinewithatotallengthof52kilometers,iscapableofsortingapeakof280,000parcelsperhour.In2023,SFreceived32,578complaints,adecreaseof12.1%comparedto2022.Thehandlingratereached100%.SFconductsquarterlycustomersatisfactionandNetPromoterScore

(NPS)surveys.In2023,thetotalsamplesizeexceeded100,000,coveringhundredsofcitiesnationwide,andinvolvingmore

than40sub-indicatorsacrosssixdimensions.Inthe2023publicsatisfactionsurveyonexpressdeliveryservicesreleasedbytheStatePostBureau,SFrankedfirstinallthreequartersof2023.AccordingtotheChinaNetPromoterScore(C-NPS)releasedbyChnbrandin2023,SFrankedfirstinthe

recommendationofexpressdelivery.In2023,SFlaunchedthe“SFID”service,whichsupports

usersinsettingcustomizedcodestoreplacetraditionaladdress

information,ensuringend-to-endinformationencryption,

andprovidinguserswithamoreconvenientandprivacy-safeway

ofsendingparcels.

ExternalESGRatingsHighlights

Note:theaboveratingresultswerecollectedonMarch26,2024.

SFhasbeenratedBBBbyMSCIfortwoconsecutiveyears(2022-2023)

Fortwoconsecutiveyears(2022-2023),SFhasobtainedaCDPclimatechangequestionnaireratingofB

SFhasratedas“LowRisk”bySustainalyticsfortwoconsecutiveyears(2022-2023)

SFhasbeenincludedintheFTSERussellESGIndexseriesforthreeconsecutiveyears(2021-2023)

SustainabilityManagementSFiscommittedtointegratingcorporatevaluewithsocialvalue,nurturingavisiontodrivesustainableindustrydevelopment,andactivelyexploringthepathofcorporatesustainability.SFcontinuouslyimprovesitssustainabledevelopmentmanagementsystem,activelyintegratingESGprinciplesintoeveryaspectofitsvaluechain,enhancingitssustainabledevelopmentcapabilitiesandbusinessresilience,andachievinglong-termvaluecreation.DeclarationfromtheBoardofDirectorsTheBoardofDirectorsandalldirectorssolemnlydeclarethatthecontentsofthisreportaretrue,accurate,andcomplete,withoutanyfalserecords,misleadingstatements,orsignificantomissions.TheBoardalsomakesthefollowingstatementsregardingitsESGsupervisionandmanagementwork:

ESGGovernanceSystemSFintegratesESGprinciplesintoitscorporatedevelopmentstrategy,establishingascientificandprofessionalESGmanagementsystemandaclearandtransparentESGgovernancestructure.Meanwhile,itcomprehensivelyimplementstheESG-relatedstrategiestosupportthesustainabledevelopmentoftheCompany’sbusiness.

CommunicationwithStakeholdersSFattachesgreatimportancetocommunicationwithstakeholdersandhasestablisheddiverseandefficientcommunicationchannelstailoredtothecharacteristicsofdifferentstakeholders.Throughregularanddiversifiedcommunicationwithninecategoriesofstakeholdersincludingregulatoryagencies,investors,employees,customers,valuechainpartnersandsoon,SFoptimizetherightstoknowforallstakeholders.Atthesametime,theCompanyactivelyconsidersstakeholders’concerns,integratingtheirexpectationsanddemandsintostrategicandoperationalmanagement,andregularlyreviewsthematerialityofvariousissuesintheCompany’soperationsanddevelopment.MainStakeholderGroupsMainConcerns

MainChannelsforCommunication

ResponseMeasures

Regulatoryagencies

CompliantoperationPayingtaxesin

accordancewithlawsBuildingIntegrity

InformationdisclosurePolicyimplementationInspectionofinstitutions

OperatingincompliancewithlawsPreventingmajorsafetyaccidentsIncreasinglocalemploymentratePromotingactivelyindustrialpovertyalleviation

Employees

Employeesrightsand

benefitsEmployeedevelopment

andtrainingEmployeecareOccupationalhealthand

safety

EmployeecommunicationchannelsEmployeesatisfactionsurveyEmployeemeetingEmployeeactivities

Protectingemployees’rightsaccordingtothelawProvidingtrainingImprovingthetalentpromotionandsalarysystemmechanismStrengtheningoccupationalhealthandsafetymanagementPromotingdiverseemployeebenefits

Customers

SafetyDeliveryConsumersProtectionCustomersprivacyResponsiblemarketing

CustomerresearchCustomerhotlineCustomersatisfactionsurvey

Providingefficient,reliable,andfastlogisticsservicesEnhancingthecustomerclaim

settlementprocessBuildingasafeecosystem

Shareholdersand

investors

InvestmentreturnsCorporategovernanceESGmanagement

Generalmeetingof

shareholdersAnnouncementsand

circularsInvestorroadshow

Establishingandimprovingthescientificdecision-makingandsupervisionmechanismStrengtheningriskmanagementDisclosinginformationproperlyOrganizingandparticipatingin

activitiestargetingdifferenttypesofshareholdersDirectors,supervisorsandseniormanagement

CorporategovernanceComplianceriskSustainableOperations

Regularboardmeetings

PeriodicreportOperatingincompliancewithlawsandregulationsStrengtheningriskmanagement

Suppliers

Sustainable

procurementHonestyandintegrityIndustrycooperation

SupplierconferenceSuppliertrainingIndustrycommunication

PromotingtransparentprocurementEliminatingcommercialbribery

Community

PubliccharityCommunity

developmentRuralrevitalization

ProvisionofemploymentIndustrialassistanceVolunteerservicePublicwelfareactivities

Interactionsthroughwebsitesand

otherofficialplatformsPayingregularvisits

Industryassociation

StrengtheningcommunicationandcooperationIndustrialstandard

development

ConveningsummitactivitiesOrganizingtechnologicalcommunication

ParticipatinginindustryactivitiesParticipatinginthedevelopment

ofindustrialstandard

Media/thepublic

InformationtransparencyInteractionwiththemedia

InformationdisclosureBuildingacommunicationmechanism

Activecommunicationthrough

websitesandotherofficial

platformsProvidingexternalpublicity

materials

AssessmentofMaterialityIssuesToreviewthecommitments,policies,managementstrategies,actionsandperformanceintheaspectofsustainabledevelopment,andtorespondtostakeholders’concernsregardingtheCompany’ssustainabledevelopment-relatedmatters,SFannuallyidentifiesandupdatesESGmaterialityissuesthroughacombinationofquestionnairesurveysandon-siteinterviews.TheseissuesarecomprehensivelyintegratedintotheCompany’soperationalmanagementwork,continuouslystrengtheningthemanagementandpracticeofsustainabledevelopmentwithintheCompany.ProcessofAssessingMaterialityIssues

Step1-IdentificationofissuesStep2-StakeholderSurveysStep3-AssessmentofthematerialityissuesStep4-Prioritizationoftheissues

SafetydeliveryandtransportationDatasecurityandprivacyprotectionRespectandguaranteeofhumanrightsEnergymanagementandcarbonemissionreduction

EmissionmanagementSustainablesupplychainsRuralrevitalization,charityandvolunteeringResponsetoclimatechange

Diversityandinclusion

Low

TheimportancetotheCompany’sdevelopment

Theimportancetostakeholders

GovernanceEnvironmentSociety

High

CorporategovernanceOccupationalhealthandsafetymanagement

ProductandserviceoptimizationBuildingagreenandsmartindustrychainEmployeetraininganddevelopment

Anti-corruptionandbusinessethicsEmployeewelfareandcareGreenpackagingandresourcerecycling

AnalysisResultofMaterialityIssues

Theme:ForgingAheadwithOriginalMissionandWritingaNewChapterUnderConcertedEffortsLedbyPartyBuildingStandardizingCorporateGovernanceStrengtheningRiskControlManagementAbidingbyBusinessEthicsEnsuringInformationSecurity

GOVERNANCE

TrainingclassofthematiceducationonthestudyandimplementationofXiJinpingThoughtonSocialismwithChineseCharacteristicsfora

NewEra

SFPartyCommitteewontheGroupChampionofShenzhenExpress

IndustryPartyCommitteeKnowledgeCompetition

Theme

ForgingAheadwithOriginalMissionandWritingaNewChapterUnderConcertedEffortsLedbyPartyBuilding

Celebrationofthe102ndAnniversaryoftheFoundingoftheCPCand

The“July1”CommendationConference

PartyandMassServiceCenterofSFGroup

ConductingHigh-standardPartyBuildingandStrengtheningPrimary-LevelPartyBuildingAdheringtothePrincipleof“OneSynchronization”and“TwoCoverage”

CarryingoutHigh-qualityPartyMembersActivitiestoStimulateTheirVitalityasaPioneerTobefullypreparedforthe“DoubleEleven”businesspeak,thePartyCommitteeofSFissuedthePartyMembersPioneerActionInitiative,callingonallprimary-levelPartyorganizationsandthemajorityofPartymemberstotaketheinitiativeinthepromptestablishmentofthe“PioneerTeamofPartyMembers”tosupportthefrontlineandserveasastrongreserveforcetowinthe“DoubleEleven”peakbattle.Inaddition,SFarrangedanarrayofactivitiestocelebratethe102ndanniversaryofthefoundingoftheCPC,andencouragedcourierswhowerePartymemberstoplayapartinurbangovernance,andserveasa“mobileprobe”incivilizedcityconstruction,urbanenvironment,andresidentservices.

PartymemberQinWenchongwonthe27th“ChinaYouthMay

FourthMedal”

SFAviationDepartmentwasawarded“NationalWorkersPioneer”

Inthe“sevengoalsfortheyouthinthenewera”seriesofactivities,eachprimary-levelpartyorganizationactivelyrecommendeditsexcellentpartsfortheappraisalofrolemodels:

In2023,thecoverageoftheCompany’sPartybuildingwasashighas85%.

StandardizingCorporateGovernanceCorporateGovernanceSFhasformulatedtheArticlesofAssociation,theRulesofProcedureforGeneralMeetingofShareholders,theRulesofProcedureforBoardofDirectors,andtheRulesofProcedureforSupervisoryCommitteeandotherinternalcontrolrulesandregulationstoimprovetheinternalcorporategovernancestructureandtheinternalmanagementsystemandregulatetheconductoftheCompany.TheCompanyhasclearlydefinedtheresponsibilitiesandauthoritiesofdecision-making,executionandsupervision,establishedacorporategovernancestructurecomposedofthegeneralmeetingofshareholders,BoardofDirectorsandSupervisoryCommittee,andformedaneffectivedivisionoflaborandrestraintmechanismwithclearrightsandresponsibilitiesandstandardizedoperation.

Generalmeetingofshareholders

OfceoftheBoard

ofDirectorsStrategyCommittee

RemunerationandAppraisalCommittee

RiskManagementCommittee

BoardofDirectors

SupervisoryCommittee

NominationCommittee

AuditCommittee

GeneralMeetingofShareholdersTheCompanyconvenesandholdsgeneralmeetingsofshareholdersinstrictcompliancewithrelevantlawsandregulations,engageslawyerstoattendthegeneralmeetingasobserversandissuelegalopinionsontheholdingandvotingproceduresofthegeneralmeeting,andgivesfullrespecttoandprotectsthelegitimaterightsandinterestsofallshareholdersandinvestors.TheCompany’scontrollingshareholdersstrictlyregulatetheirbehaviors,exercisetheirrightsthroughthegeneralmeeting,anddonotinterferewiththeCompany’smanagementordecision-makingdirectlyorindirectlybypassingthegeneralmeetingandtheBoard.In2023,SFheld3generalmeetings.

SF’sGovernanceStructure

PerformanceofDutiesbySpecialCommitteesofSF’sBoardofDirectorsin2023StrategyCommittee

ConsidertheoveralldevelopmentstrategyandsustainabledevelopmentstrategyoftheCompany,superviseandguidetheESGimplementation,andmakerecommendationstotheBoardofDirectors.RemunerationandAppraisalCommittee

EnsurethattheremunerationsystemservestheCompany’sbusinessstrategyandissubjecttoconstantadjustmenttosupporttheCompany’sfurtherdevelopment.RiskManagementCommittee

GuidetheCompany’soverallriskmanagement,evaluatethecompletenessoftheriskmanagementsystemandissueopinions,andprovidesupportfortheBoardofDirectorstoperformriskmanagementfunctions.NominationCommittee

Makedecisionandprovideprofessionalrecommendationsonthecandidates,selectioncriteriaandselectionproceduresfordirectors,generalmanagers,andotherseniormanagementappointmentoftheCompany.AuditCommittee

Givefullplaytotheroleofauditsupervision,reviewauditworkreportseveryquarterandprovideguidanceandsuggestions,promotetheestablishmentandimprovementofinternalcontrols,standardizetheCompany’sbusinessbehaviors,optimizebusinessmanagement,andavoidbusinessrisks.

DiversityoftheBoardofDirectors

StrengtheningRiskControlManagement

SFhasestablishedasoundinternalcontrolandriskmanagementsystemtostrengthenandstandardizetheinternalmanagementoftheCompany,continuouslyimprovetheeffectsofriskpreventionandcontrol,andpromotethesustainableandhealthydevelopmentoftheCompany.TheCompanyalsoactivelyidentifiesandassessesenvironmental,socialandgovernance(ESG)risksinoperationanddevelopment,andclarifiestheresponsestrategiesforsuchriskstoeffectivelyreduceoperationalrisks.

RiskManagementSystemSFhasestablishedariskmanagementstructureledbytheRiskManagementCommitteeoftheBoardofDirectors.TheRiskCommitteeundertheRiskManagementCommitteeoftheBoardofDirectors,ledbytheChiefFinancialOfficer(CFO)oftheCompany,isaprofessionaldecision-makingbodyfortheoverallmanagementandcontroloftheCompany’srisks.TheCommitteeismainlyresponsiblefordeliberatingandmakingdecisionsonthebuildingoftheCompany’sriskmanagementsystem,policies,preventionofmajorrisksandresponsetomajorcrises.TheRiskCommitteereportstotheRiskManagementCommitteeoftheBoardofDirectorsonaquarterlyandannualbasis.TheRiskControlandComplianceOfficeoftheCompanycoordinatesthemanagementofriskcontrolandcompliance;whiletheleaderofeachfunctionaldepartment,BG(BusinessGroup),BU(BusinessUnit)andregionhastheprimaryresponsibilityfortherelevantriskcontrol,responsiblefortheformulationofspecificriskcontrolmeasuresandimplementationrules,aswellastheidentificationandassessmentofdailyrisksandtheimplementationofcontrolmeasures.

SFRiskManagementOrganizationalStructure

RiskManagementCommitteeoftheBoardofDirectorsRiskCommittee(CFO)

TheCompany’sRiskControl

andComplianceOfce

TheCompany’sFunctions,BGs/BUsandSubsidiaries,etc.

StrategyFormulationOrganization:

StrategyFormulationandGuidance

OverallManagementOrganization:

SystemOptimization,andControl

ImplementationOrganization:

RoutineManagementandExecution

Uniedadministration

UniedoperationAssessment

ReportFeedbackOptimization

RiskManagementPractices

SFcontinuestoimproveitsriskmanagementsystemonthebasisoftheCompany’scomprehensiveriskmanagementsystem.In2023,SFnewlybuiltacomplianceriskmanagementsysteminvariousfieldsincludingenvironmentalprotection,safetyproduction,anti-monopolyandunfaircompetitionbycomprehensivelysortingoutcompliancerequirementsandreferringtodomesticandinternationaladvancedexperiences.SFalsosynchronouslyupdatedpolicydocumentssuchastheRiskControlandComplianceManagementPolicy,andtheRiskEventManagementPolicytoconsolidatetheCompany’sriskmanagementcapabilities.EnhancementofDigitalRiskManagementCapability

SFhascontinuedtostrengthenitsdigitalriskmanagementcapabilitybycontinuouslyupgradingtheCompany’sriskmanagementsystem,internalcontrolandcompliancesystemandcompliancemanagementsystem.Throughcontinuousiterativeoptimizationofthesystems,SFhasachievedthedigitizationoftheentirechainfromriskidentification,assessment,monitoring,earlywarning,response,toloopclosing,therebyeffectivelyimprovingtheefficiencyofriskidentificationandmanagement.

In2023,SFcompletedthebuildingofitscompliancemanagementsystem,applyingintelligentalgorithmstomarkandaggregatecomplianceinformationinasystematicway,andenhancingitsabilitytoaggregate,precipitate,analyze,shareandproactivelymanagecomplianceinformationinanintelligentmanner,thusrealizingthescheduledposition-basedpushofcomplianceinformationandimprovingtheefficiencyofcompliancemanagement.Inaddition,theCompanyhasoptimizedtheriskmanagementfunctionandlaunchedtheriskeventdatabaseatthemobileendtofurtherenhancetheefficiencyofriskmanagement.

RiskManagementSystemResponsibleformonitoringriskmanagementandcontrolinpriorityareasoftheCompanyandmanagingriskevents.InternalControlandCompliancePlatformResponsibleforconductingregularinternalcontrolinspectionsoftheCompany’sbusinessprocessesandsupervisingrectification.ComplianceManagementSystemResponsibleforintelligentlycapturingandanalyzingexternalregulatoryrequirementsandpublicopinioninformation,andmonitoringthequalityofinternalizationofexternalregulations.

ESGRiskManagementSFregularlycarriesouttheidentificationandsortingofriskinformationdatabase,andfullyintegratesenvironmental,socialandgovernancerisksintotheoriginallevel1,2and3riskleveldatabase.TheESGriskmanagementstructureisconsistentwithSF’sriskmanagementorganizationalstructure,withtheRiskManagementCommitteeoftheBoardofDirectorsasthehighestriskmanagementbodyresponsiblefortheidentification,preventionandcontrolofESGrisks.Atpresent,SFhasidentified16typesofESGrisksincludingnaturaldisasterrisk,intellectualpropertyrisk,fraudrisk,safetyproductionrisk,humanresourcemanagementriskandothers.Environmentalriskscontaincarbonneutralityrisk,operationrisksunderextremeweatherandhightemperature,coveringawiderangeoftheESGfield.(Pleaserefertothe“Climate-relatedInformationDisclosures”forthegovernance,countermeasuresandtargetsofclimatechangerisks.)

Loop-closingManagementofRiskEventsSFhasestablishedasoundriskeventmanagementsystem,whichrealizesgradedriskeventmanagementthroughrisklabels,andstrengthensthewhole-processriskmanagementofpre-eventprevention,in-eventresponseandpost-eventreview,soastoenhancetheefficiencyofriskeventmanagementandcontrol.

Pre-eventPreventionRegularlycarryoutriskassessmenttounderstandthecurrentsituationofriskmanagementandcontrol,continuouslyoptimizetheriskmanagementandcontrolmechanism,andreducetheprobabilityofoccurrenceofriskeventsfromthesource.

Post-eventReviewSummarizetheincidentwiththerelevantdepartments,digoutrootcauses,promotethedepartmentstoformulateoptimizedsolutions,andcontinuetoconsolidatethebasiccapabilitiesofriskeventmanagement.

In-eventResponseRespondwithmultipledepartmentstoaddressriskeventsaccordingtolocalconditionsandminimizethenegativeimpactscausedthereby.

RiskManagementTrainingSFcontinuestoorganizediversifiedrisktrainingandempowermentcoursestostrengthenemployees’riskawarenessthroughofflinetraining,onlinelearning,examinationandotherforms.In2023,theCompanyconductedatotalof29trainingcoursesonriskcompliance,coveringsuchriskareasasproductandservicequality,anti-monopolyandunfaircompetition,exportcontrolandtradesanctions,andintellectualpropertyrights.Atotalof86,400hoursofrisk-specifictrainingcourseswereconductedthroughouttheyear,andthecoveragerateofnewemployeesreached100%.

Basedonriskeventmanagement,theCompanycarriedoutatargetedrefreshoftheriskscenarioanddeposited26riskresponsemanagementandcontrolplansin2023.Basedonthesummarizedresponseexperienceofhistoricalriskevents,theCompanyconsideredmedium-andhigh-riskpointsintobusinessscenariostopreparecorrespondingriskplans,achieving100%coverageofmediumandhigh-riskpoints.

In2023,theCompanyheld24weeklymeetingsonriskcontrol,generatingatotalof52resolutions,ofwhich4meetingsand5resolutionswererelatedtoESGissues.

AbidingbyBusinessEthicsSFadherestocomplianceoperationandbusinessethics.TheCompanyhasestablishedamanagementmechanismledbytheAuditCommitteeoftheBoardofDirectors,whiletheChiefAuditExecutive(CAE)isresponsiblefortheoverallmanagementoftheCompany’sbusinessethicsaffairs,includinganti-corruption,anti-moneylaunderingandanti-unfaircompetition,andregularlyreportstotheAuditCommittee.Forprimary-levelmanagers,theCompanyformulatedthe“369CodeofConduct”,whichputanendtothreeviolationsofbusinessethics,requiredsixaffairstobemadepublic,andestablishednineguidelinesformanagerstosetanexampleandadheretobusinessethicsinoperationandmanagement.In2023,SFhadnolegallitigationsrelatedtoimpropercompetitionandanti-monopoly.

SeniorManagementDisciplinary

InspectionCommittee

EmployeeDisciplineInspectionCommitteeLedbytheCEO,CHOandCAE

SF’sDefensiveLinesforIntegritySupervision

ThreeDefensiveLinesforIntegrity

Supervision

Thefirstline:Businessareas/branches

Thethirdline:CompanyauditThesecondline:RegulatorydepartmentattheheadquartersforeachsegmentLegalaffairs/Compliance/Internalcontrol/Riskcontrol,etc.

Business

Areas/Branches

Businessowners/outlets

RiskControlGroupofOperationandManagement

Department

EmployeeRelationshipGroupofHumanResources

Tocreateafair,justandopenworkingatmosphere,SFhasalsoestablishedananti-corruptionsystemof“nocourage,noabilityandnointention”tostrictlypreventandsternlypunishillegalandcorruptbehaviorssuchasbribery,acceptanceofbribery,embezzlement,andfraud.

SF’s“NoCourage,NoAbilityandNoIntention”SystemforAnti-corruption

Layasolidfoundationof“nointentiontobe

corrupt”ideologyCommitmentsigningPropagandaandeducation

SpeciallearningOrganizationatmosphere

Createa“noabilitytobecorrupt”governance

environmentofOrganizationgovernanceSystemsandstandardsDemocraticsupervision

Createaworkingatmosphereof“nocouragetobecorrupt“Activeanti-fraudProfessionalinvestigationandpunishmentStrictaccountabilitysystem

In2023,SFactivelycarriedoutspecialtrainingonintegritytopicsthroughavarietyofonlineandofflinechannelstoorganizeallemployeestolearn,toknowandtoabidebytherulestogether.Integrityrelatedtrainingcovers100%oftheemployees,withatotalof70,073hoursofanti-corruptioneducation.Amongthem,20offlinespecialanti-corruptiontrainingsessionswereheldthroughouttheyear.

2023IntegrityTrainingProgramInordertopreventandcombatagainstallkindsofcorruptbehaviors,SFactivelyencouragesallemployeestosigntheLetterofCommitmenttoAnti-corruption,toprotectthelegitimateinterestsoftheCompany,employees,customersandpartnersfrominfringement,andtopromotethesustainableandhealthydevelopmentoftheCompany.In2023,therateoftheworkforcesigningtheLetterofCommitmenttoAnti-corruptionreached99.0%,up4.4%fromthatin2022.Inaddition,theCompanyrequirescooperativesupplierstosigntheIntegrityAgreementtojointlybuildanintegrityvaluechain.In2023,therateofsupplierssigningtheIntegrityAgreementreached100%.

SF’sAnti-CorruptionPropagandaandEducation

ExposurebulletinEarlywarningfordisclosureofviolationofrulesordisciplines

PropagandaandpromptsPositiveguidanceCommendationofexamples

SysteminterpretationRedlineunder

rulesReporting

channelsRewardmechanismSituationalguidance

CautionaryformJudicialfraudcasedisclosurewarning

IntegritybriefingMonthlydisclosureHotissuesandconcerns

Anti-corruptionannouncement

IllegalfraudAnnualannouncement

“HonestyandIntegrity–DoubleFullPass”:

SFlaunchedthe“HonestyandIntegrity–DoubleFullPass”actionforallemployees,andatotalof115,000employeesparticipatedinlearningandexamination.“PreventingandControllingRisksforOperation”:

Theintegrity-themedtraining,“PreventingandControllingRisksforOperation”,wasconductedforkeypositionsandspecificfunctions,coveringmorethan3,500employees.ManagementLectures:

10sessionsof“ManagementLectures”wereheldformanagement,coveringcorevalues,culturalconcepts,integrityandanti-corruption,withmorethan6,600peopleparticipatedintotal.

TheCompanyunderstandstheinternalintegritysituationthroughregularresearchonintegrityindex.Atthesametime,theCompanycontinuouslycarriesoutpublicityandeducationonintegrityculturewhichcoversallemployees,promotestheanti-corruptionsystemandinitiativestotheemployeesthroughvariousforms,includingpolicyinterpretation,integritybriefingsandanti-corruptionannouncements.Furthermore,theCompanyalsoadoptsacombinationofonlinecasesandofflinetrainingtocarryoutpositivepropagandaonintegritycultureandnegativewarningsonfraudcasestostrengthenemployees’anti-corruptionawareness.

ReportingchannelsSFprovidesmultipleopen7*24reportingchannelsforinternalandexternalstakeholders,includinge-mail,hotlines,andtheCompany’sofficialwebsite,toencourageemployees,suppliersandotherstakeholderstoactivelyexposeviolations.Atthesametime,theCompanyhasestablishedamutualcommunicationmechanismtounderstandtheplightofemployeesonbusinessethicsthroughemployeesymposiums,internalmediaandotherforms.

ReportingchannelsTargetgroupReportinge-mailsf5198@sf-express.com

AllinternalemployeesandexternalstakeholdersSFofficialwebsiteAboutus–IwanttoreportMailingSFHeadquarters–AuditDepartment(Receipt)ForespaceAPPService–Iwanttoreport

AllinternalemployeesLaborunionhotline4006883783Uponreceiptofthereport,SFwillactassoonaspossible,requiringtherelevantdepartmenttofollowup,andmakeimmediateandpositiveresponsesinaccordancewiththe“TripleOnes”(“三个一”)timelinessrequirements.

Aftertheinvestigationandreviewofanyviolations,theCompanywilltakedisciplinaryactionagainsttheresponsiblepersoninvolved,dependingontheseverityoftheviolation.Iftheviolationissuspectedofbeingillegal,theresponsiblepersonwillbereferredtothejudicialauthoritiesforprosecution.

ExcerptsfromtheAnti-CorruptionCommitment:

Iwillrefusetoengageinanybribery,acceptanceofbribes,embezzlementandotherimproperbusinesspracticesduringthetenureof

office.IwillrefusetoengageinanybehaviorthatconflictswiththeinterestsoftheCompanyduringthetenureofoffice,unlesspriorwrittenandexplicitintentionisobtainedfromtheCompany.Duringemployment,ifanyunitorindividualrelatedtothebusinessoftheCompanyoffersorrequestanygifttomeduringthetenure

ofoffice,IwillrefuseandpromptlyreporttotheCompany.

“TripleOnes”Requirements:

Responsewithinoneworkingday:Respondtothewhistleblowerwithinoneworkingdayuponreceiptofthereport.Caseconfirmationwithinoneweek:Confirmwhetheracaseneedstobefiledforinvestigationwithinoneweekuponreceiptofthe

report.Completionoftheinvestigationwithinonemonth:Completetheinvestigationofthereportandprovidetheresultswithinonemonthof

confirmingthecase.

In2023,SFachieveda100%follow-uprateforeffectivereportsanda96%compliancerateforthe“Tripleones”requirementsregardingtime-efficientcomplainthandling.

WhistleblowerProtection

SFhasclearlydefinedtherequirementsforconfidentialityofwhistleblowerinformationinitsReportingManagementMeasures:Anyemployeewhohasaccesstoinformationreportedshallkeeptheinformationconfidential.Theresponsiblepersonofeachorganizationsthefirstpersonresponsiblefortheprotectionofwitnesses(includingwhistleblower),andshalltakereasonablemeasurestoprotectwitnesses(includingwhistleblower),ensurethatthebasicrightsandinterestsofwitnesses(includingwhistleblower)arenotinfringed,andstampoutanyformofretaliation.In2023,thereisnobreachesofprivacyforanonymouswhistleblowersinSF.

SF’sMeasuresfortheManagementofWhistleblowingsetsouttheconfidentialityrequirementsforwhistleblowerinformation,includingbutnotlimitedtothefollowing:

Allpersonnelwhoreceiveinformationreportedshallsubmittheinformationtothedepartmentinchargeofwhistleblowingandshallnot,attheirdiscretion,disclosetheinformationtootherpersonnel.Personnelinvolvedinthefollow-upofthereportshallnotdisclosetherelevantinformationtootherpersonnel.Investigationresultsandhandlingopinionsshallnotbedisclosedpriortotheassessmentandpublicannouncementofthedisciplinary

opinions.Investigationreportsandevidenceshallnotbedisclosedtootherpersonnelattheirdiscretion.

Attheendofthereportingperiod,SFhad4,093patentsinforceorpendingand2,490softwarecopyrights.Ofthese,inventionpatentsaccountedfor

59.3%ofthetotalpatentportfolio.

EnsuringInformationSecurityInformationandCybersecurityManagementSystemSFremainshighlyvigilantwithregardtoinformationsecurityandcybersecurityrisks.TheCompanycontinuouslyimprovesitsinternalinformationandcybersecuritymanagementsystem.TheCompanyalsoupdatesanditeratesitsinternalpoliciesandrelatedmeasuresinaccordancewiththelatestrelevantdomesticandinternationallaws,regulations,aswellasdataprotectionstandards.Theseeffortsstrengthenthefoundationfordataprotectionandnetworkinformationsecurity.In2023,SFupdateditsinformationandcybersecuritygovernancestructurebyestablishinga3-layerinformationsecurityandprivacymanagementstructurethatincludesdecision-making,managementandexecutionorganizations.

InformationandCybersecurityGovernanceStructureSFTechnologyInformationandCybersecurityManagementSystemhasobtainedISO27001InformationSecurityManagementSystemCertificationandISO27701PrivacyInformationManagementSystemCertification,coveringtheCompany’smainbusinessoperationscenarios.Inaddition,theSFExpressapphaspassedtheLevel3ProtectionAssessmentforCybersecurityClassificationProtection,andtheCCRCCertificationinMobileInternetApplication(Andriod/IOS)Security.

Decisionmaker

InformationSecurityandPrivacyCommittee

ComposedoftheCTO,theCEOandtheCFOoftheCompany

Beresponsibleforinformationsecurityandprivacyprotectiondecisions,appointmentsandinstructions,aswellassupervisionandauditofpersonalinformationprotectionrelatedmattersInformationSecurityandPrivacyProtectionWorkingGroup

LedbytheChiefInformationSecurityOfficer,withanInformationSecurityCenter,variousbusinesslines,andaLegalAffairsCenter

CoordinateandorganizetheCompany’sinformationsecurityandprivacyprotectiongovernanceManagementDepartmentsandBusinessUnits

Composedoffunctionaldepartmentsandbusinessunits

ImplementspecificinformationsecurityandprivacyprotectiongovernancemeasuresExecution

ISO27001Certification

ISO27701Certification

CCRC(Andriod)Certificate

Level3CybersecurityCertificate

InformationandCybersecurityManagement

AssessmentofGradedProtection:

Thesecuritycomplianceofinformationsystemsismonitoredandassessedbasedonnationalandindustrystandardsandspecifications.ThisassessmentenablestheCompanytogainatimelyunderstandingofthesecurityprotectionstatusofinformationsystemsandtoassesstheirsecurityprotectioncapabilities.Inaddition,targetedcorrectiveactionscanbeproposedforanyidentifiedsecurityissuesandpotentialrisks.InternalAuditoftheManagementSystem:

InternalauditsoftheinformationsecuritymanagementsystemarecarriedoutinaccordancewithISO27001,ISO27701andotherrelevantstandardsintermsofcompliance,applicabilityandsufficiency.AnyissuesidentifiedareaddressedpromptlytoensurethereliabilityoftheCompany’sinformationandcybersecuritysystem.SecurityResponseCenter(SRC):

TheSFSRCisdesignedtoenablepotentialinternalriskstobeidentifiedexternallyandremediatedinatimelymanner,andtorewarduserswhodiscoversecurityvulnerabilitiesinthesystemsandoperations.

Inordertostrengtheninformationandcybersecuritymanagement,SFhastakenvariousmeasurestoimprovethedatasecurityawarenessanddatasecurityandpersonalinformationprotectionskillsofallemployees,therebyenhancingthefoundationofSF’sdatasecurity.Red-blueconfrontationdrillInMarch2023,SFconductedatwo-weekRed-blueconfrontationdrillsincollaborationwiththeattackteamofanexternalsecuritycompany.Thedrillsimulatedclassicscenariosofvariousexternalcyberattacks.Throughoutthedrill,theCompanycontinuouslyidentifiedweaknessesinthecybersecuritydefensessystemandreviewedthemforimprovement.Theaimofthedrillwastoimprovethecollaborationandemergencyresponsecapabilitiesofoursecurityteam,therebystrengtheningtheCompany’sdatasecuritycapabilities.

SFDataSecurityRiskAssessment

StandardStatus

NationalstandardInformationSecurityTechnology–DataSecurityRequirementsforExpressandLogisticsServices(GB/T42013-2022)

OfficiallypublishedinOctober2022

NationalstandardInformationSecurityTechnology–BasicRequirementsforCollectingPersonalInformationinMobileInternetApplications(GB/T41391-2022)

OfficiallypublishedinApril2022

NationalstandardInformationSecurityTechnology–ImplementationGuidelinesforNoticesandConsentinPersonalInformationProcessing(GB/T42574-2023)

OfficiallypublishedinMay2023

NationalstandardInformationSecurityTechnology–SecurityRequirementsforProcessingofSensitivePersonalInformation

OfficiallyopenforpublicconsultationinAugust2023

CyberSecurityStandardPracticeGuide–DataClassificationandGradingGuidelines

OfficiallypublishedinDecember2021

MeasurestoProtectPersonalInformation

MechanismforReceivingandRespondingtoRequestsRegardingPersonalInformationRights

SFhasestablishedamechanismforreceivingtorequestsregardingpersonalinformationrights.Priortothecollectionandprocessingofuserdataforbusinesspurposes,userswillbepromptlyinformedoftheirpersonalinformationrightsandrelatedinformationthroughmeanssuchasprivacyagreementcheckboxesanddevicepop-ups.Inaddition,users’requeststoexercisetheirpersonalinformationrightsarerespondedtowithinthespecifiedtimeframeasrequiredbythelaw.

StrengtheningtheTechnicalFoundationofPrivacyProtectionSFkeepsimprovingitsdatasecuritytechnologycapabilities,includingunifiedprivilegemanagementplatforms,automatedencryption/decryptionplatforms,logmanagementandanalysistools,andpersonaldatadesensitization.Theaimoftheseeffortsistoprotectusers’personalinformationfromunauthorizedaccess,manipulation,disclosure,corruptionorloss.

PrivacyWaybillProtectionSFdesensitizesthefieldsontheexpresswaybillthatcontainusers’personalinformation,namelythenames,contactandaddressdetailsofthesenderandrecipient.Inaddition,deliverypersonnelandcustomerservicerepresentativescommunicatewithcustomersusingvirtualphonenumbers.Thiseffectivemanagementoftherisksassociatedwithdatasharingenhancesusers’privacyexperience.

PersonalDataLifecycleSecurityManagement

Underthedatalifecycletheory,thepersonalinformationinvolvedinthebusinessactivitiesissubjecttoclassificationandgradingmanagement.SFtakesprotectivemeasuressuchasencryption,de-identification,andaccesscontrolduringthedatacollection,transmission,use,andstorageprocesses,dependingonthesensitivityofthedataandtheprincipleofminimumnecessaryrule.Thesemeasuresaimtoeffectivelyprotectpersonalinformationsecurity.SecurityIncidentDetectionandResponse

SFusesasecurityincidentinvestigationandresponseplatformtomonitorbothinternalandexternalthreatsignalstargetingsensitivedatainrealtime.Thisplatformallowsforimmediateidentificationofabnormaloperationsandhigh-riskbehaviorsthatmayposetheriskofpersonalinformationleakage.Onceanabnormalityisidentified,theCompanyimmediatelylaunchesaninvestigationandtakesmeasurestominimizetheriskofpersonalinformationleakageatthesource.

Theme:ExploringValuethroughCarbon,RacingtowardstheZero-CarbonFuture

ENVIRONMENT

TheIndustry’sFirstShipment-levelCarbonCalculationModelIndependentlyDevelopedbySFProvidingLow-carbonSupplyChainSolutions,EmpoweringIndustrialChainPartnersAsabenchmarkenterpriseactivelypromotingandimplementingthe“dualcarbon”strategyinthelogisticssupplychain,SFunderstandsthatthevalueofgreendevelopmentgoesbeyonditselftoinfluencetheentireindustrychain.Basedonitsstandardizedcarbonmanagementsystemandfine-grainedcarboncalculationcapabilities,combinedwiththeleadingexperienceinthelogisticsindustry,SFhasreacheddeepintovariousindustriessuchasnewenergy,high-tech,clothing,footwear,andluxurygoods,providingcustomizedgreenandlow-carbonsupplychainsolutionsandservicestomultiplebrandcustomers.Itstronglyenablesupstreamanddownstreampartnersintheindustrialchain,collaboratingwithourcustomerstoacceleratelow-carbontransformationandjointlydrivetheindustrytowardsazero-carbonfuture.

SF’sIntelligentPackagingAlgorithmSolutionhelpstheMotorcycleParts

CompanyEnhanceitsGreenValueTohelpthemotorcyclepartscompanysolveproblemssuchaslowwarehouseloadingefficiency,severepackagingmaterialwaste,andhightransportationcosts,SFcustomizedanintelligentpackagingalgorithmsystemforthiscompany.Thesystemsimulatesthepackagingprocessthroughcomputermodelling,andusesalgorithmstoaccuratelycalculatethemostsuitableboxsizeforeachorder.Comparedtothetraditionalmethodofpackagingbasedonemployeeexperience,thedigitalpackagingtoolalgorithmachievespreciseandefficientboxselection,improvestheloadingrateofpackagingboxes,andsignificantlyreducestheusageofpackagingmaterials.Meanwhile,theadaptationofboxsizeseffectivelyreducesspacewasteduringtransportation,improvestheefficiencyoftransportationresourceutilization,andalsoreducestransportationcosts.Itnotonlysolvestheproblemofwarehousepackagingforcustomers,butalsobringsdualimprovementsinenvironmentalprotectionandeconomicbenefits.

Theaccuracyofcarbonemissionsdatacanbeimprovedby

approximately70%

Settingcarbontargetsandconducting

monthlyfollow-upWhole-chaincarbonfootprintmanagementfromsupplierstowarehousinganddistribution

Carbonaccounting

Providingconsultationservicesfornetzero

emissionstrategyinlogisticsscenariosDesigninganddeliveringgreenandlow-carbonlogisticservices

Providingcustomerswithservicesincludingcarbonaccounting,carbonneutralitycertification

Carbonemissionreduction

Carboncertification

Assistingcustomersinacquiring

high-qualitycarboncreditstooffsettheiremissionsCarbonoffset

SF’sIntelligentPackagingAlgorithmSolution

Increasetheloadingrateof

packagingboxesProvidethemostsuitable

packagingsolution

Significantlyreduce

packagewaste

SFJoinsChinaESGAlliancetoContributetoaGreenFutureIn2023,SFofficiallyjoinedtheChinaESGAlliance(hereinafterreferredtoasthe“theAlliance”),whichwasjointlyestablishedbyseveralwell-knownenterprisesandinstitutionsintheindustry.TheAllianceintegratesprofessionalESGinsightsandecologicaldevelopmentresources,createsaninnovation-drivencommunicationplatformthatissupportedbydigitaltechnology,andhatchesgreenandsustainablesolutionstohelpenterprisesenhancetheirESGvalues.AsamemberoftheAlliance,SFwillleverageitsleadingadvantagesandsuccessfulpracticesinESGareas,suchasgreentechnologyinnovationandlow-carbonlogisticssolutions,strengthencross-industrycommunicationandcooperation,andexertpositiveinfluenceasamemberenterprise.SF,togetherwithothermembers,strivestodriveESGdevelopmentonallfrontsandleadsthegreentransformation.

BuildingaGreenandLow-carbonLogisticsEcosystem,ChartingaGlobalCarbonNeutralBlueprinttogether

Buildingazero-carbonbusinessenvironmentisofparamountimportanceinturningthegrandblueprintofglobalcarbonneutralityintoreality.SFattachesgreatimportancetocross-industryexchangesandcooperation,andactivelyengagesinprofessionalexchangeandsharingactivities,strivingtoestablishlong-termandfriendlypartnerships.Basedonthecorevalueofsustainabledevelopment,SFfullyleveragesitsleadingadvantagesandsuccessfulpracticesinthefieldofgreenandlow-carbonlogisticstopromotecross-industrycollaboration.Throughparticipationinandconductofcontinuousgreenandlow-carbonspecialdiscussions,mutualempowerment,andtheestablishmentofindustrystandards,itachieveswin-wincooperationwhiledrivingthedevelopmentoftheindustrialchaintowardsgreenandlow-carbondirections.SFreleasesitsgreeninfluenceandjoinshandswithbusinesspartnerstobuildagreenandlow-carbonlogisticsecosystem,contributingtoglobalsustainabledevelopment.

ExploringValuethroughCarbon,RacingtowardstheZero-CarbonFuture——TrainingVenueforSF’sGreenandLow-CarbonCapabilityBuilding

CreatingGreenLogisticsAimingtoprotecttheenvironment,saveenergyandreduceemissions,SFhascontinuouslyimproveditsenvironmentalmanagementsystem,realizedgreenmanagementcoveringthewholelifecycleoflogisticsbypromotinglow-carbontransportation,buildingagreenindustrialpark,developingsustainablepackagingandapplyinggreentechnology,etc.,andactivelycreatedsustainablelogistics.

CarbonReductionInitiativesandAchievements

PhotovoltaicPowerGeneration

GreenPackaging

Applicationof

GreenTechnology

Others

GreenTransportation

CarbonReductionDirectionCarbonReductionInitiatives

GreenGroundTransportation:

Optimizetransportationcapacity,increasetheproportionofnewenergyvehicles,andpromotelow-carbontransportation.Upgradetheloadingcapacityofvehicles,replacevehicleswithhigheraxlecounts,andimprovetransportationefficiency.Phaseouthigh-fuel-consumptionvehicles,reduceenergyconsumptionandpollution,andachievemoreenvironmentallyfriendlygroundtransportation.

GreenAviation:

Increasetheproportionoflow-energyandhigh-efficiencylargefreighterstopromotegreenaviationtransportation.Increasetheproportionofnewenergyvehiclesinairbasestoreducecarbonemissions.

Continuouslyincreasetheconstructionofphotovoltaicinindustrialparks,andcontinuouslyimprovetheproportionofclean

energyinenergyconsumption.

Fullyimplementpackagingreduction,recycling,harmlessnessandstandardization,andcontributetogreenlogistics.

Utilizingintelligenttransportpathplanningtechnologytooptimizetransportroutesandeffectivelyreducetransportenergyconsumption.Activelypromotepaperlessprocesses,suchaselectronicproofofdelivery(POD),photouploading,andpaperlessreimbursement.

Createthe“SFCarbon-NeutralForest”toachievecarbonoffset.Implementtheuniformpointsredemptionmechanismtomotivatethecouriertoreducethefrequencyofuniformreplacementandreducematerialconsumption.

In2023,SFreducedgreenhousegasemissionsby1,945,917tCO

e

GHGemissionintensity(tCO

e/millionrevenue)

ThisistheGHGemissionintensitydataofSFonly,excludingKerryLogisticsNetworkLimited.

41.1

47.6

2022

2023

14%

1030405060702060,000180,000220,000280,000360,000420,000120,000

374,469

304,029

GHGemissionsreducedthroughgreentransportation(tCO

e)20222023

23%

60,000180,000220,000280,000360,000420,000120,0001504506007509001,050300

730.9

824.5

Carbonfootprintperparcel(gCO

e/parcel)20222023

11%

1504506007509001,050300100,000300,000400,000500,000600,000700,000200,000

541,090

506,408

GHGemissionsreducedthroughgreenpackaging(tCO

7%

100,000300,000400,000500,000600,000700,000200,0003,0009,00012,00015,00018,00021,0006,000

18,339

9,843Photovoltaicpowergeneration(MWh)

86%,Equivalenttocarbonemissionreduction

by10,229tCO

3,0009,00012,00015,00018,00021,0006,000200,000600,000800,0001,000,0001,200,0001,400,000400,000

1,018,436

739,982

GHGemissionsreducedthroughtheapplicationofgreentechnologies(tCO

38%

200,000600,000800,0001,000,0001,200,0001,400,000400,0002507501,0001,2501,5001,750500

1,692

Emissionreductioncontributedbyotherinitiatives(tCO

e)(“SFForest”included)20222023

180%

OptimizingEnvironmentalManagementSystemSFhasestablishedasoundenvironmentalmanagementsystemandenergymanagementsystem,andwillcontinuetofacilitatethecompletionofofficialenvironmentalandenergymanagementsystemcertificationsofeachbusinesssegment.Asoftheendofthereportingperiod,alloftheCompany’smainbusinesssegmentshavepassedISO14001environmentalmanagementsystemcertification,andSFAirlineshasobtainedISO50001energymanagementsystemcertification.

ISO14001Environmental

ManagementSystem

ShenzhenS.F.TaisenHolding(Group)Co.,Ltd.S.F.ExpressCo.,Ltd.S.F.ExpressGroup(Shanghai)ExpressCo.,Ltd.GuizhouS.F.ExpressCo.,Ltd.ShenzhenSFFreightCo.,Ltd.GZSFPharmaceuticalSupplyChainCo.,Ltd.FengyiTechnology(Shenzhen)Co.,Ltd.JiangxiFengyuShuntuTechnologyCo.,Ltd.ShenzhenSFComprehensiveLogisticsServiceCo.,Ltd.SFMultimodalTransportationCo.,Ltd.ShenzhenSFInternationalSupplyChainManagementCo.,Ltd.ZhejiangShuangjieSupplyChainTechnologyCo.,Ltd.ShanghaiShunxiaofengDistributionCo.Ltd.WuhanShunfengZhidaLogisticsCo.,Ltd.ShenzhenXingshunIntelligentSupplyChainCo.,Ltd.ShenzhenFenglangSupplyChainCo.,Ltd.ShenzhenChengfengBusinessandEnterpriseServicesCo.,Ltd.ISO50001EnergyManagementSystem

SFAirlinesCo.,Ltd.RB/T104-2013EnergyManagementSystemsforTransportIndustry

Enterprises

PromotingLow-carbonTransportation

Additionally,SFcontinuestoexplorethewiderdeploymentofrenewableenergyvehicles.Aftertakingintoaccountthematurityofnewenergyvehicletechnologyandrefuelingconditions,aswellastheapplicabilityandfeasibilityinpracticaloperations,theCompanyhasinitiatedpilotoperationsofLNGandhydrogenvehiclesincertainregionsandroutes.In2023,atotalof11hydrogen-poweredlightdutytruckshadbeenputintooperationinShanghaiandtwoLNGtractorsinBeijing.

11,354

17,053

21,278

26,189

31,750

40,00030,00020,00010,000

7,049

NumberofSF’sSelf-ownedandLeasedNew-energyPoweredVehiclesfrom2018to2023201820192020202120222023

Servicecoverageextendsto243citiesAtotalof31,750newenergyvehicleshavebeenplacedinservice

ReplacingFuelVehiclesReplacingfuelvehiclesingroundtransportationscenariosisacrucialpartofpromotingenergytransformationandplaysavitalroleinreducingairpollutantsandgreenhousegasemissions.In2023,SFcontinuedtooptimizeandreplacetraditionalfuelvehicles.Methodssuchasincreasingloadingcapacity,replacinghigh-axlecountvehiclesandphasingoutvehicleswithhighenergyconsumption,wereadoptedtocomprehensivelyimprovethefuelefficiencyandtosignificantlyreducethenegativeenvironmentalimpactofexhaustemissionsfromfuelvehicles.In2023,morethan2,000fuelvehicleswerereplacedordecommissionedbytheCompany.

Third-partyplatforms

Third-partychargingpiles

NewenergyvehiclesofSF

SFplatform

Chargingrecords

On-site

chargingChargingoperationsonApp

Interoperability

ofCharging

Platforms

Adoptingthestrategyof“replacingsmallvehicleswithlargerones”,wherevehiclemodelswithinsufficientloadingcapacityarereplacedandeliminated,toreducethefrequencyofdeploymentsandimprovetheefficiencyoftransport.capacityinputbyincreasingloadingcapacity.

Graduallyreplacinghigh-axlecountvehiclemodelswithlow-axlecountonestoreduceunnecessaryfuelconsumption,asthelatterperformsbetterintermsoffuelsavings.

Formodelswithhighfuelconsumption,managementapproachessuchasfuelconsumptioncalibrationandspeedratioadjustmentareemployedtolowerfuelconsumptionModelswithfailureinimprovementareeliminatedtoensureanoverallimprovementinfleetfuelefficiency.

Strictlyinaccordancewithnationalandlocalrequirements,implementthe"NationalStageVIMotorVehiclePollutantEmission"vehicleemissionstandards,andtaketheinitiativetodisposeoffuelvehicleswithsubstandardemissions.

Phase-outofmodelswithinsufficientloadingcapacity

Replacementofhigh-axlecountvehicles

Preciselymanagingfuelefficiency

Strictimplementationofvehicleemissionstandards

Drivingbehaviormodelling

SupportedbytheCompany’sdatatechnology,weestablishedadrivingbehaviordatabase,whichincludesidlingspeed,overspeedandmanyotherfactors,achievingabreakthroughindevelopingafuelconsumptionmanagementtoolfromscratch.

AnalysistoolsforenergyconsumptionWemadein-depthanalysisonfactorsincludingroutes,vehiclemodels,axlecountandemissionstandards,providingstrongsupportforoptimizingfuelconsumptioncontrol.

Managementandtrainingempowerment

IntheCompany’sinternalregularmeetings,exemplarymanagementmethodsrelatedtovehiclereplacement,jobrotation,andparkingaresharedtoconstantlyimprovefuelconsumptioncontrolmeasures.Insomekeyregions,supportivemeasuresforfuelconsumptionmanagementhavebeenimplemented,successfullyreducingfuelconsumptionby1%to5%.

OptimizingTransportationRoutes

EnergyConservationandEmissionReductionLeadingGroupandManagementCommitteeGuidetheworkoftheEnergyManagementTaskforce;Reviewandassesstheworkplansandmeasuresproposed

bytheEnergyManagementTaskforce.

EnergyManagementTaskforce

Conductstatisticalanalysisonaviationkerosene,gasoline,

diesel,gas,water,electricity,andotherenergydata;Formulatespecificenergymanagementworkplansand

measures;Advancetheimplementationofenergymanagementwork

plansandmeasures;RegularlyreporttheprojectprogresstotheLeadingGroup.

SF’sAirlinesEnergyManagementStructure

InternationalRoutesRedispatchUnderthepremiseofensuringflightsafety,SFAirlinescanpreciselyreducetheamountoffuelfortake-offbyimplementingaredispatchstrategyoninternationalroutes,therebyincreasingthebusinesspayloadoftheflight.In2023,SFAirlinessavedabout3,292tonsofaviation

fuelandreducedcarbondioxideemissionsby9,981tCO

ethroughredispatch.

StraightRouteSelection

Routeoptimizationallowsthereductionofunnecessarydetoursandturns.Thisshortenstheflightdistanceandreducesfuelconsumption.In2023,SFAirlinessavedabout1,183tonsofaviationfuelandreducedcarbondioxideemissionsbyapproximately3,587tCO

ethroughstraightrouteselection.

SFiscommittedtobuildingalow-energy,high-efficiency“greenfleet”andactivelyintroducinglargecargoaircraftsuchasthe747and767,whilegraduallyincreasingtheproportionofwide-bodycargoaircraft.Comparedtothetraditional737models,thenewlyintroducedlargecargoaircraftexhibithighercarbonemissionefficiencyandlowerfuelconsumptionpertonofpayloadunderfullloadconditions.Asoftheendof2023,SFhadatotalof86ownedcargoaircraft.

20192020202120222023

0%10%20%30%40%50%60%70%80%90%100%

737747757767

Theproportionofself-ownedlargeaircraftsofSF

increasedyearbyyearfrom2019to2023

Applyingfuel-savingtechnology

SFAirlinescontinuestoexploreandoptimizefuel-savingtechnologiesintheaviationtransportationsector,activelyapplyingaseriesofinnovativefuel-savingmeasures,includingoptimizingflightaltitudelevels,refiningpayloadmanagement,dynamicallocationofaircraftmodelsbasedonpayloadforecast,redispatch

,straightrouteselectionandAPUshutdowntoreducefuelconsumption.

Underthepremiseofensuringthesafeandnormaloperationofflights,SFAirlinesrationallyutilizesinternationalroutefuelpoliciesandimplementsredispatchstrategiesforflightstoreduceaircraftrefuelingandlowerfuelconsumption.

Theprogressofvehicleelectrificationatvariousaviationbasesin2023

Strivingtoachieve

100%electrificationofvehicle

equipmentataviationbasesby2030

Theelectrificationrateofthevehicleequipmentreached

55.8%

27.45%

Theelectrificationrateofthevehicleequipmentreached16%

15.2%

EzhouBaseShenzhenHeadquartersHangzhou

Base

Beijing

StrictpreventionandcontrolofpollutionSFAirlinesiscommittedtoimplementingstrictpollutantemissioncontrolinairtransportationbusinessscenarios.Forwastefuelgeneratedduringaircraftmaintenance,SFAirlineshasformulatedandimplementedinternaloperationalmanagementstandards,clarifyingthedisposalrequirementsforvariousfuels,suchaswastefuel,hydraulicoil,andlubricatingoil.Intermsofnoisecontrol,SFAirlineshasimplementedvariousnoiseabatementmeasuresandhasoptimizeddepartureproceduresandcargoaircraftdeparturestrategies.Additionally,SFAirlinesactivelyengagesinregularairfieldnoisemonitoring,whichfurtherenhancestheeffortstomitigatetheimpactofaircraftnoiseonthesurroundingenvironment.

BuildingGreenIndustrialParksSFisactivelybuildinggreenandlow-carbonindustrialparks,promotinggreenoperationsinvariousaspectssuchasplanninganddesign,warehouseconstruction,andoperationalmanagement,basedongreeninfrastructureconstructionandcarbonreductiontechnologicalinnovation.Throughvariousmeasuressuchasinstallingrooftopphotovoltaics,introducingintelligentwaterandelectricitymanagement,andoptimizingwarehousespacelayout,SFcomprehensivelyimprovestheefficiencyandenergy-savingbenefitsofthetransferprocess,reducingtheenvironmentalimpactofthetransferprocess.thatareenvironment-friendly,energy-efficient,andoperatewithagreenethos.In2023,SF’sindustrialparksinChangshaandFoshanobtainedthe“ClassIGreenWarehouse”certificationbytheChinaWarehousingandDistributionAssociation(CWDA),whiletheGuizhouindustrialparkreceivedthe“GreenLogisticsPark”certificationissuedbytheGuizhouFederationofLogisticsandPurchasing.

SFcontinuouslyincreasestheproportionofcleanenergyusage,activelyplansforrenewableenergygenerationprojects,andadvancestheconstructionprogressofphotovoltaicprojectsinindustrialparks.In2023,SFestablishedtheIndustrialParkPVProjectManagementImplementationSystem,clarifyingthefull-processmanagementstandardsforphotovoltaicprojectsfromsiteselectiontooperation,includingsupplieraccessstandards,photovoltaicprojectinvestmentandconstructionstandards,equipmentandmaterialqualitystandards,managementstandardsduringconstruction,andsubsequentoperationalmanagementrequirements.

GreenWarehouseCertification

(Changsha)

(Foshan)

ProvincialGreenLogisticsParkCertification(Guizhou)

Operationalefficiencyimprovement

Inordertoimprovetheoperationandmanagementefficiencyofthepark,SFhasbuiltapropertymanagementsystemthatintegrateskeypropertymodulessuchasenvironmentalgreening,securityandfiremanagement,andmaintenanceandinspectionoffacilitiesandequipment,whichhascoveredalltheparksinoperationandensuresthattheparksoperateefficientlyandsafelyasawhole.

Intelligentenergymanagement

SFhasestablishedtheEnergyConsumptionManagementSystemforIndustrialParksandinstalledintelligentwaterandelectricitysystemstostandardizethemanagementofpublicenergyconsumptioninvariousparks,effectivelyimprovingtheefficiencyofresourceutilizationintheparks.Asoftheendof2023,theintelligentwaterandelectricitysystemsforindustrialparkshavebeeninstalledandoperatedinfiveparks.Comparedto2022,thewaterandelectricityconsumptioninthepublicareasoftheoperationalparkshasdecreasedby8.9%and12%,respectively.Inaddition,SFactivelypromotestheconstructionofpermeableconcretetechnologyandcarriesoutrainwatercollectionworkwithintheparks.Therecoveredrainwaterisrecycledandreusedasgreeningwater,effectivelyimprovingtheutilizationrateofwaterresourcesandsavingwaterusage,andplaysagooddemonstrationroleinprotectingtheecologicalenvironment.Installationofenergy-savingequipment

SFcontinuestocarryouttheinstallationofnewenergychargingpilestomeetthegreentravelneedsofcustomersintheparks.Bytheendofthereportingperiod,30industrialparkshadcompletedtheconstructionofnewenergychargingpiles,withatotalofmorethan280chargingdevicesinstalledandmorethan500chargingspacesprovided.

Byintegratinginstitutionalregulationsanddigitalempowerment,theCompanyiscontinuouslyimprovingitsenvironmentalmanagementcapabilities,focusingonaspectssuchasoperationalefficiencyimprovement,intelligentenergymanagement,andinstallationofenergy-savingequipment.

ProgressandFuturePlansforPVProjectsinIndustrialParksAsoftheendof2023,SFhadsuccessfullypromotedtheconstructionof26industrialparkPVprojects,ofwhich14industrialparkPVprojectshavebeenputintooperation,withacumulativeinstalledcapacityof64MW,andanannualcleanenergygenerationof18.39millionkWh.SFwillcontinuetopromotetheinvestmentandconstructionofPVprojectsinitsindustrialparks,withtheaimoffullycompletingtheconstructionandputtingthemintooperationbytheendof2025.Bythen,thetotalinstalledcapacityofphotovoltaicequipmentintheparkswillreach140MW,andtheannualpowergenerationisexpectedtoexceed100millionkWh.

SustainablePackagingR&DSFactivelyrespondstothetrendofgreenpackaging,firmlyimplementstheguidanceofthe“9917”Programforgreendevelopmentinthepostalindustry,andcontinuouslyincreasesinvestmentintheresearchanddevelopmentofsustainablepackagingmaterials,strivingtomakebreakthroughsingreenpackagingtechnology,models,andapplicationinnovation.Guidedbysustainabilityandintelligence,SFcomprehensivelypromotesthereduction,recycling,harmlessness,andstandardizationofpackaging,contributingtogreenlogistics.Atthesametime,SFiscommittedtodeepeningthefinemanagementofsustainablepackagingandcloselycollaboratingwithupstreamanddownstreampartnersintheindustrychaintojointlypromotethedevelopmentofgreenpackaging.

RecyclablePackaging

SFRecyclableWovenBag

SFLightweightDocumentWaterproofBag

Duringtherainyseason,toshielddocumentsandticketsfromraindamage,couriersfrequentlyplaceanextrastandardplasticbagoverthedocumentenvelope,thisextrausageaccountingforabout4.5%oftheoveralluseofdocumentenvelopes.Inordertoreducetheconsumptionofmaterialsinthisscenario,SFhasintroducedaspecializedwaterproofbagfordocumentsasanalternative,whichreducesthethicknessby40%,simplifiesthemanufacturingprocess,optimizesfromthree-layerco-extrudedfilmtoasingle-layerco-extrudedfilm,andavoidstheneedforprintingtobemoreenvironmentallyfriendly.In2023,SF’sentirenetworkappliedfortheuseoftheselightweightdocument-specificwaterproofbagsapproximately2.55million.Thismoveledtoadecreaseinplasticconsumptionofaround19tonsandareductionincarbonemissionsofapproximately67tons.

Additionally,SFhasdevelopedandimplementedrecyclablepackagingsolutionsincludingmedicalprecisiontemperature-controlledboxes,coldchainEPPrecyclableinsulatedboxes,andstandardrecyclablepalletboxesforlargeitems,alltailoredtomeetthediverserequirementsofcustomersacrossvariousindustriesandscenariosforcircularpackaging.In2023,SF’srecyclablepackaginginitiativescontributedtoatotalcarbonemissionreductionofapproximately377,000tons.

PharmaceuticalTransportationScenarios–PharmaceuticalTemperature-controlledRecyclableBoxThisboxusesadesignforrecyclabletemperature-controlledpackaging,effectivelyreplacingdisposablefoamboxes.Throughongoingimprovementsandoptimizationsofmaterials,thenumberoftimespackagingboxescanbereusedhasbeensignificantlyincreased.Comparedtotraditionalfoamboxes,eachuseofapharmaceuticaltemperature-controlledrecyclableboxcanreducecarbonemissionsby207g.

ColdChainTransportationScenarios–ColdChainEPP

RecyclableInsulatedBoxComparedtotraditionalwhitefoamboxes,theEPPrecyclableinsulatedboxislightweight,pressure-resistant,non-toxic,andenvironmentallyfriendly,providingasaferandmoreeco-friendlysolutionforcoldchainlogistics.In2023,SFpilotedabout4,000recyclableinsulatedboxincoldchaintransportationscenarios,accumulatingmorethan20,000timesofrecyclingandreducingcarbonemissionsbyabout5tons.

BulkTransportationScenariosRecyclablePalletBox:madeofPP/PEmaterials(100%recyclable),theyexhibitstrongcompressiveandimpactresistance.Theabsenceofnailsreducestheriskofworkplaceinjuriesandeffectivelydecreasesthedependenceontraditionalwoodenframes,woodenboxes,andwoodenpalletsforlargeandirregularindustrialitems.Asoftheendofthereportingperiod,over30,000recyclablepalletboxeshavebeendeployed,withacumulativereuserateexceeding170,000times;RecyclableHoneycombPanels:primarilymadeofPP

material(about97%recyclable),theyexhibitstrongimpactresistanceandcanbeusedasasubstituteforaircushionsorhoneycombcardboardintelevisionprotection.Asoftheendofthereportingperiod,approximately11,000reusablehoneycombpanelshavebeendeployed,withacumulativereuserateexceeding54,000times.

“π-Box”RecyclableBox

Theπ-Boxcarbon-neutralrecyclableboxisareusableouterpackagingboxindependentlydevelopedbySF.ItismadeofenvironmentallyfriendlyPPmaterialthatisharmlesstohumansandtheenvironment,with97%oftheboxbeingrecyclable.Iteliminatestheneedforconsumablematerialssuchasadhesivetapeandzippers.AsoftheendofDecember2023,over1.29millionπ-Boxrecyclablepackagingboxeshavebeendeployed,covering119cities,withacumulativereuserateexceeding20.64milliontimes.

SettingtheIndustryStandards:SF’spackaginglaboratorywashonored

withthe2022ChinaStandardsInnovationandContributionAward

SF’spackaginglaboratoryobtainedtheChinaStandards

CNASCertificate

In2023,SF’spackaginglaboratory,inpartnershipwithseveralinstitutions,contributedtotheformulationofthenationalstandardGB/T37422–2019MethodandCriteriaforGreenPackagingAssessmentwhichwasawardedtheSecondPrizeof2022ChinaStandardsInnovationContributionAward.Thisstandardadoptsa“wholelifecycle”approachtopackaging,encompassingaspectssuchasdesign,production,usage,andrecycling.Itestablishesacomprehensive,practical,andbroadlyapplicablegreenpackagingevaluationindexsystem,addressingavoidingreenevaluationstandardswithinChina’spackagingindustry.ChinaStandardsInnovationandContributionAward,asthehighesthonorinthefieldofstandardizationinChina,aimingtorecognizeorganizationsandindividualswhohavemadeoutstandingcontributionstostandardizationactivities.SF’spackaginglaboratoryreceivedthisawardsignifiesthatitsworkingreenpackagingstandardizationhasreachedaleadingpositioninChina.

In2023,SFcontinuedtoimprovetheclosed-loopmodelofrecyclingandregenerationofexpressbags,andcompletedthetechnologicalinnovationandimplementationof“DoubleEasy”(easytorecycle,easytoregenerate)bagsthroughcloselinkagewithinternalbusinesslinesandin-depthcooperationwithupstreamanddownstreamenterprises.Inthefieldoffront-endtechnologyresearch,SFhascompletedtheresearchanddevelopmentoftheregenerationformulaandproductsof“DoubleEasy”plasticbags,addingupto30%ofregenerationresin(PCR)whilemaintainingexcellentmechanicalproperties,inlinewiththerequirementsofthenationalstandardforcourierbags,andrealisingthevalueofasinglematerialthatiseasytorecycle.Ithaswonthecertificateofexcellentratingof“PlasticProductsEasyRecyclingDesignCertification”issuedbyathird-partyauthoritativeorganisation,whichfullydemonstratesthecompany’sleadingabilityinbuildinganinnovativecirculareconomymodel.

PlasticProductsEasyRecyclingDesignCertification

ExpressEasyRecycling,EasyRegeneratingRecyclingSystem

FormulaRawmaterial

supply

ProvidingtechnicalsupportfortheformuladesignofrecyclablepackagingmaterialsTheregeneration

formula

Filmblowingandbagmanufacturing

Theusage

Wastecollection

Consumers

ProvidingPEmaterialwithtraceablequalityandorigin

dropRecycling,cleaningandpelletizingProvidingresourceutilizationoftherecycledmaterials

GRPGDoubleEmarkFilmblowing,printingandbagmanufacturing

Terminalexpressoutlets/stationsTransportation

Thelastmile

deliveryWastereallocation

Discardedplasticfilms

Recyclingand

pelletizing

Manufacturersofplasticproducts

TheRecyclingPoster

Userend:over880,000DoubleEbagshavebeen

dispensedinShanghai.In2024,theGroupanticipatesexpandingtheapplicationinsevenmajorregions,reducingcarbonemissionsbyapproximately1,000tonsperyearcomparedtoconventionalpolyethylene(PE)bags.Thiswillreducecarbonemissionsbyapproximately1,000tonsperyearcomparedtoconventionalPEbags.Recyclingend:theterminalrecyclingpointsinShanghaihaveincreasedto35thisyear,coveringvariousplacessuchasschoolsandservicestations.SFputsuppostersatvariousrecyclingpointstodisseminatetheconceptof“zerowaste”.Asoftheendofthereportingperiod,thetotalamountofrecyclingreachedover

1.1tons.SFplanstoincreasetheterminalrecyclingpointsby30%,andstrivestoamplify

thetotalamountofrecyclingbymorethan40%.

SF’sDoubleECourierBags

TheRecyclingPoint

Thefirstindustry-wideclosed-looprecyclingpilotprojectforplasticpackagingwastewasofficiallylaunchedinShanghaiin2023.Witheffortsfromtheupanddownstreamindustrialpartners,theprojectaimstocollectandpelletizediscardedcourierwastesandmanufactureshigh-performanceproductsthroughtechnologicalinnovation.Wefacilitatedaclosed-looprecyclingsystem,breakingawayfromthetraditionallinearmodeof“production–usage–disposal”toestablishacircularbusinessmodelfromcourierbagstocourierbags,andminimizetheenvironmentalimpactofexpresswastes.

BuildingagreencarbonenergyplatformtopromoteanewmodelofsustainableconsumptionSFkeepsdevelopingagreenenergyplatformtopromotecarbonreductionamongconsumers.Withthisplatform,SFencouragessustainableconsumptionbyestablishingaholisticclosedloopof“promotinglow-carbonservices–usinglow-carbonservices–rewardinggreenenergy–redeemingpoints”.Tomotivatemoreconsumerstochooselow-carbonservices,SFexploresvariousscenariosoflow-carbonservices,includingcircularpackage,SFRush,electronicproofofdelivery,photouploading,EPPtemperaturecontrolboxesandthespecialurgentdeliveryservices.Consumerswillberewardedwith“greenenergy”thatcanbefurtherredeemedforgiftsandvouchersafterselectingandadoptingtheselow-carbonservices.Bydoingso,weimprovethesatisfactionofconsumerstowardservicesofSFgreenlogistics,andfosteracollaborativeeffortwithuserstocreatealow-carbonlifestyle.

SFLaunchedthePublicWelfareVideo–“ZeroCarbonFuture”toMotivateIndividualstoTakeSmallStepstowardsReducingTheirCarbonFootprint

Tobetterdisseminatetheconceptofzerocarbontothepublic,employeesandbusinesspartners,SFfilmeditspublicwelfarevideo–“ZeroCarbonFuture”.Theadvertisementhasbeenreleasedbothinternallyandpublicly,withacurrenttotalonlineviewcountssurpassing10,000.OnDecember5,2023,theInternationalVolunteerDay,SFheldthepremiereoftheSFpublicwelfareadvertisementwithathemeonforestconservation-“ZeroCarbonFuture”-inNanshandistrict,Shenzhen.Avidtreeplanterssharedtheirexperienceswithapproximately100participantsinthisevent.Consequently,wearoseawarenessofemployeesandvolunteersaboutenvironmentalprotection,evokedprofoundreflectiononenvironmentalprotectionandinspiredthemtotakesmallactionstoreducecarbonemissions.

PromotingPublicEnvironmentalAwarenessSFiscommittedtoimprovingthepublicconsciousnessandawarenessofenvironmentalprotectionbyvariedmeans.Bydoingso,weaimtoinspirethepublictoactivelyengageinenvironmentalactionsandjointlypromotesustainabledevelopmentandbuildaZeroCarbonFuture.

SFGreenCarbonEnergyPlatformforCarbonReduction

ThePremiereofThePublicWelfareVideo–“ZeroCarbon

Future”

“GoGreenTogether”–ExploringaGreenandSustainableFuture

SFcontinuestocarryoutthe“GoGreenTogether”program,aimingtoencouragepublicparticipationinthereuseofidleexpresscartonsthroughDIYtransformations.2023isthefourthyearofthisprogram.SFusedexpresscartonsasvasesforgreenplantsandcalledoneveryonetodoso.Wealsoconnectwith“plantrecyclinginthecommunity”organisationstocreateofflineflashactivitycalled“plantinggarden”,attractingpeopletoexperiencecardboardboxplanting,andconveytheenvironmentalprotectionconceptoftheplan.SFalsocooperatedwithaninternationalmaternalandbabybrandtolaunchathemedparent-childactivitycalled“Green’Box’CompanionshipforBaby’sGrowth”.ThehostpreparedplantingcartonsdesignedbySFandthematernalandbabybrand,andencouragedeveryonetotransformcartonsintovasesthroughDIY,whichpromotestheconceptofrecyclingandtransformingwasteintotreasurestochildren.

TheDIYPlantingCarton

SFForestinSeda,SichuanInJuly2023,SFlaunched“SFcarbon-neutralforestinSeda,Sichuan”.Weensuredthehealthofplantsandtheecologicalbenefitsatmaximumbyselectingplantsadaptiveforlocalclimateandfollowingscientificplantingandmaintainingmethods.SFplanted514,530sprucetreesintheDemavillageofRanchongtowninSedacounty,SichuanProvincethisyear,covering741acres.Additionally,SFcaresthelocalcommunity,andensuresresidents’basiclivingbyprovideregularprovisionsofsubsistencetothewoodsrangers,childrenandtheelderly.

SFCarbon-NeutralForestPlanting

Asoftheendof2023,SFtogetherwithitsenterprisesandemployees,hadplantedcarbon-neutralforestspanningover823.5acreswithacumulativetotalofmorethan600,000trees,whichwillabsorbestimatedover110,000tonsofcarbondioxideintheatmosphereduringtheirfuturegrowth.thusmakingapositivecontributiontothemitigationofglobalwarming.In2023,theSFForestwaslistedinthe“ChinaPublicWelfareBrandProjectList”bySouthernWeekend.

Asoftheendof2023,theapphadattractedmorethan80,000individualusers.Together,theyadoptedover70,000treesandmadeoverRMB500,000ofdonations.

In2023,atotalof37,837tree

saplingswereadopted,anincreaseof85%comparedto2022.Saplingswereplantedinthefieldaftermaturing,contributingtoagreenerEarth.

OnlineApp–TheSFForestAsachampionforthegreenandenvironmentallyfriendlyconcept,SFencouragesvoluntaryinlow-carbonactivitiesandprovidesdiversifiedapproachestopublicwelfare.SFintegratesITwithgreenphilosophybydevelopinganonlineappcalled“theSFForest”,bringingusersabrand-newinteractiveexperience.Theuserscaneasilyacquireinformationsuchastheplantingandgrowthofforestsandthefruitoftheenvironmentalprotectionthrough“theonlinetreeplanting”.Theappalsofeaturesavarietyofinteractivefunctions,suchasmeasuringcarbonemissions,adoptingandraisingsaplings,etc.,andmotivatesuserstoparticipatethroughataskrewardmechanism.

TheSHForestOnlineAPP

GreenOffice

SFhasestablishedinternalsystemssuchas“OfficeSpaceManagementMeasures”and“WaterandElectricityManagementMeasures”toactivelyintegrategreendevelopmentintodailyoperationwithanemphasisonthescientificandreasonableuseofresourcesandemissionsandatthesametime,encouragingitsemployeestopracticelow-carbonbehaviours,andcontinuouslyimprovingtheirawarenessofenvironmentalprotection,soastojointlycreateagreenandenvironmentallyfriendlyofficeenvironmentandbuildaresourceandenergy-savingenterprise.EnergyManagementEnergymanagementisanessentialissueofthesustainabledevelopmentofacompany.Tobuildagreenandlow-carbonenvironment,SFactivelypushesforwardaseriesofenergymanagementmeasures.

Forenergysaving,SFhasreplacedsomeofstreetlampsintosolar-poweredones,andregularlyturnedoffthelightwhileensuringillumination.SFhasreplacedsomeoftheporchlightsinitsstructureintodiscontinuousinfraredbodysensoractivatedlightsdesigned

withtwosetsofswitches.Tomanageenergyconsumption,oneswitchisremainedpermanentlyonandisconnectedtotheinfraredbodysensoractivatedlight,whiletheotherisundermanualcontrol,allowingforflexibleselectionofswitchingtime.Thisenergy-savinginitiativehasbeenprovensuccessfulinthefirstphaseofthecomplexbuildinginMa’anshanindustrialpark,where0.672kwhweresavedforeachfloorperday.Aspartoftheenergy-savingrenovationattheheadquarters,SFupgradedlightsanddisplays,resultinginelectricitysavingofover13,000kwhpermonth.Energy-SavingRenovation

SFhasdevelopedacomprehensiveenergymonitoringandmanagementmechanism.Byinstallingenergymetersthatenable

real-timemonitoringanddataanalysisofelectricityandwaterconsumptioninoffices,SFworksoutimprovementmeasuresaftertimelyidentifyingwasteanditscause.EnergyMonitoring

SFreducesenergyconsumptionbyintroducingenergy-savingofficeequipmentsuchascomputersandprinters,andreasonably

deployingdevicestodecreasemachinestandbyandidletime.Toavoidelectricitywasteandpreventsafetyrisks,SFrequiresturningoffthepowerofdeviceswhentheyarenotinuseforan

extendedperiod,afterbeingchargedorduringoff-workhours.ElectricityConsumptionofOfficeEquipment

WasteManagement

SFstrictlymanageswastesinoperations.TheGroupstrivestoreducethenegativeimpactonenvironmentbymeasuressuchaswastesortingandresourcesrecycling.SFhasdevelopedandimplementedaninternalwastesortingpolicy.Weactivelyimplementrelevantmeasuresinofficesandmanufacturingsites.Distinctmarksforwastesortingandspecifictreatmentprocesseshavebeensetupforvarioustypesofwaste.

GeneralwasteRecyclablewasteHazardouswasteGeneralwastesuchasdomesticwaste,obsoleteofficesupplies,wasteplasticbags,wastefolders,paperscraps,ragsandwasteglovesfirstlyshouldbesortedout.Afterwards,theyaretransportedtodesignatedplacesandhandledbythesanitationdepartment.Thedisposalprocessshouldbedulyrecordedforbettermanagementandcontrol.

Recyclablewastesuchaswastepaper,paperproductsandcardboardshouldbecentrallycollectedandsenttothedesignatedlocations.Thenpersonnelinchargeshouldcontactqualifiedcontractorsforon-siterecyclingbasedontheconditionofthewaste,thusmakingthebestuseofit.

Hazardouswastesuchasobsoletelamps,batteries,printerribbonsandtonercartridgesshouldbecollectedbySFinacentralizedmannerandhandedovertoacertifiedthirdpartyforrecycling.

SF’sPublicitypostersonwasteseparation

SFcarriesoutregulardeviceinspections,timelydetectionsandrepairsoftheleakageissuetoensureallwaterequipmentisinsoundoperatingconditionandavoidunnecessarywaterlosssuchaswaterleakageandoverflow.

SFcontinuestooptimizetheefficiencyofgreeningwaterusebyadjustingtheirrigationpattern,transitioningfromexcessivewaterirrigationtomoresustainablemethodswiththeadoptionofwater-savingirrigationtechnologies.

Outdoorrainwaterreusepondsaresetupinindustrialparksforirrigatinggreenarea,cleaninggaragesandroads,toreducetheuseoftapwater.

Elaboratelydesignedwater-savinglogosarepostedatallwaterpointswithcontentregularlyupdatedaimingtoraiseemployees’awarenessofwaterconservationandguidethemtodevelopgoodwaterusagehabits.

SOCIETY

Theme:BuildingSpecializedAgriculturalProductValueChainstoSupportRuralRevitalizationandDevelopmentEmpoweringtheTalentTeamBuildingtheLineofSafetyBuildingResponsibleChainTogetherShoulderingSocialResponsibility

Society

SFactivelyrespondstothenationalstrategiesofruralrevitalizationandcommonprosperity.AsaleadingintegratedlogisticsserviceproviderinChina,theCompanyhasalwaysadheredtothecoreconceptof“racingagainsttime”anddeeplycultivatedthefieldofagriculturalproductdelivery.CountlessSFcouriersarestationedinthefirst-mileoftheplaceoforigin,helpingtorealizethebusinessmodelofagriculturalproductsfrom“field”to“tastebuds”,winningthetrustandpraiseofthevastnumberofconsumers.FacilitatingtheFlowsofAgriculturalProductstoHelpRevitalizeRuralAreas

BuildingSpecializedAgriculturalProductValueChainstoSupportRuralRevitalizationandDevelopment

SF’sservicenetworkfordeliveringagriculturalproducts

44,000tons

11,000tons

2.20millionshipments

DriedfruitsinXinjiangXinjiangfreshfruitsXinjiangmedicinalherbsTibetancordycepssinensis

ShaanxifreshdatesShaanxikiwifruitGansuwolfberryGansuapplesGansubeefandmuttonQinghaiGolmudwolfberry

InnerMongoliabeefandmuttonBeijingjuicypeachNingxiabeefandmuttonNingxiawolfberryNingxiafreshdates

ShanxiappleSichuanorangeSichuanpomegranateSichuancordycepssinensisYunnanmatsutakemushroomsYunnancoffee

GuangxidragonfruitGuangxiorangeHainanmangoWestGuangdonglonganWestGuangdonglycheeWestGuangdongseafood

HubeiorangeHubeicraysh

AnhuiherbalmedicineAnhuitea

XianjuwaxberryFuzhouteaQuanzhouteaXiamenseafoodDongguandurianEastGuangdongpomeloSouthJiangxiorange

ChaganLakeshJilinginsengDonggangstrawberryDaliancherryYantaicherryRushanoysterHairycrab(nationwide)Yangshanpeach

In2023,SFdeliveredabout

4.58milliontons

ofspecialtyagriculturalproducts.

BuildingaSustainableProduction-distributionEcosystemtoPromoteRuralIndustryDevelopmentTheCompanycontinuestopromotethecoordinateddevelopmentoftheupstreamanddownstreamoftheagriculturalindustrychain,focusingonfouraspects:refinedservices,supportforproductionandsales,technologyempowerment,andbrandbuilding.Bybuildinganationwideservicenetworkfortheupwardmovementofagriculturalproducts,SFaimstoincreasefarmers’income,promotehigh-qualitydevelopmentofruralindustries,andcontributetoachievingcommonprosperity.

MappresentingSF’sservicestosupporttheupwardmovementofagriculturalproducts

Refinedservices

SFhasintegratedinternalresourcesincludingcharterflights,coldchainlogistics,warehouses,andotherexternalcollaborativeresourcestoserveagriculturalproductswithdifferentvaluehierarchiesandtimerequirements.Indoingso,theCompanyhaveformulateddifferentiatedoperationmodelsandrefinedpricingstrategiestoimprovebusinessefficiencyandserveawidermarketofagriculturalproductswithmorecost-effectiveservices.

BrandsbuildingSFactivelycooperatedwithlocalgovernments,ruralcooperativesandotherinstitutionstobuildregionalagriculturalproductbrands,promotebrandconstruction.In2023,SFalsocontinuedtoinvestRMB3milliontoformulateaspecialfundsubsidymechanismforthecustomizationofregionalbrandpackagingmaterialsandalsocooperatedwithlocalgovernments,obtainedbrandauthorization,designedbrandpackaging,andhelpedtojointlybuild28regionalagriculturalproductbrands.

TechnologyempowermentBasedonthecharacteristicsofagriculturalproducts,SFappliedtechnology

toolssuchasfruitwrap,harvest,one-piecedeliveryandFengsuindifferentbusinessscenarios,coveringproduction,supply,transportation,operationandsales.Thesetoolsassistedfarmersinwaybillprinting,sourcetracing,marketingandfinancialsettlement,

providingone-stoptechnologicallogisticsolutionstothe

supplychain.

Supportforproductionandsales

SFisactivelydevelopinglivestreamingmarketingandspecificbusinessscenarios.Byleveragingitsbrandinfluence

andconductinglivestreamingwithpopularonlineinfluencersattheplacesoforigin,SFhasconnectedthe

productionanddistributionofagriculturalproductstopromotetheironlinesales.Forpre-cookeddishes,lychees,

cherries,andwaxberriesandothers,SFhasworked

closelywithlocalgovernments,associations,and

leadingbrandstohostindustryconferences.

TheCompanyalsodeveloped“SF+Cold

chain+Technology”functionalitiesandprovidedsolutionsfortheindustrialsupply

chain,soastopromotethedevelopment

oftheindustry.

Asoftheendofreportingperiod,SF’sservicenetworkforhelpingagriculturalproductsproductionandsalescoveredmorethan2,700county-levelcitiesnationwide,encompassing226typesofmorethan6,000specialtyagriculturalproductsnationwide.SFfullycontributestotheupwardmovementofagriculturalproductswithpracticalactions,allowingmorelocalbrandspecialtyagriculturalproductstobeknown,tasted,andrecognizedbytheChinese.

In2023,SF'sservicenetworkforhelpingagriculturalproductsproductionandsalescoveredmorethan2,700county-levelcitiesnationwide,andcumulativelyservemorethan6,000specialtyagriculturalproducts.

Connectingproductionanddistributiontopromoteupward

movementof

agricultural

products

“DevelopingaComprehensiveLogisticsSystemforGastrodiaElata,FacilitatingtheRapidDeliveryofFreshGastrodiaElatafromYunnan”Inrecentyears,YiliangCountyhasseizedtheopportunityofYunnanProvince’sinitiativetocreateworld-class“threebrands”policies,makingtheGastrodiaElataindustrytheleadingindustryinthecounty’s“onecounty,oneindustry”projectaimedatstrengtheningthecountyandenrichingitspeople.In2023,SFactivelyrespondedtothedevelopmentandconstructionrequirementsofYiliangCounty,focusingonmultipledimensionssuchascost,timeliness,safety,after-salesservice,channels,andtechnology,tofullyensurethefreshandrapiddeliveryofGastrodiaElatafromYunnan.Inadditiontoestablishingathree-dimensionaltransportationnetworkof“air+land+high-speedrail”toensureefficientandsmoothtransportation,aGastrodiaElataprojectteamwasalsoestablished,settingupmultiplecollectionpointsinthetradingmarkettoprovidestrongsupportfortherapiddeliveryofGastrodiaElatafromYunnan.

Siteof“2023SFCrabIndustrySolutionsReleaseConferenceand‘DangtuCrabs’BrandPromotionConference”

SF’scourierpickingupfreshGastrodiaElata

EmpoweringtheTalentTeamSFremainscommittedtodrivingitsbusinessthroughtalents.SFcontinuouslybuildsa“self-sustaining”talentmechanismandaneliteworkforce,whichformsahealthy,sustainabletalentsupplychain,bolsteringtheCompany’srapidgrowthandfuturecompetitiveadvantage.SFconsistentlyincreasesinvestmentindevelopingitstalentpooltoaidbothemployees’andcompany’sgrowth,prioritizestheprotectionofemployeerights,implementscomprehensiveemployeecareandwelfaremeasures,aimingtocultivateahighlyskilled,cohesiveworkforce.

ProtectionofEmployees’RightsandInterests

actions.Rightstorestandleisure:Employeesareprovidedwithlegalpaidleavessuchasannualleave,sickleave,marriageleaveand

maternityleaveaccordingtotheirlocallawsandregulations.Privacyprotection:Disclosureofanyemployee’spersonalinformationtoothersisprohibitedwithouttheauthorizationofthe

Companyandtheemployeehimself/herself.Theabovecommitmentsapplytoalldirectors,officersandallworkforceofS.F.HoldingCo.,Ltd.anditssubsidiaries.SFhaszerotoleranceforanyformofforcedlabor,childlabor,discrimination,harassment,orotherillegalbehaviors.TheCompanyhasformulatedtheEmployeeHandbookandtheSFRecruitmentManagementSystemthatclearlyprohibitchildlaborandforcedlabor,discriminationandunequaltreatment.Inthisway,theCompanycanensureequalremunerationforequalworkbetweenmenandwomen,limitworkinghours,protecttherightsandinterestsoffemaleemployees,andpromotetheemploymentofpeoplewithdisabilities.Inaddition,SFhasclarifiedtherulesofdisciplinarypunishmentforharassmentintheRewardsandPenaltyManagementRegulations.TheCompanyrequiresallemployeestoreviewandsigntheRewardsandPenaltyManagementRegulationsonline,andalsofostersthepublicityinvariousregionalorganizationsoffline,coveringallworkforce.In2023,SFdidnothaveanyincidentsofdiscrimination.

TheprinciplesofequalityinSF’srecruitment,promotionandremunerationmanagement

Recruitment

Undertheprinciplesoffairnessandequality,theCompanyhaveformulatedatransparentrecruitmentprocessthatisclearlyandformallycommunicatedtoallcandidates.TheCompanywillneverrestrictrecruitmentoremploymentbasedongender,geographicalregion,ethnicity,religiousbelief,orfinancialsituation.Employeepromotion

TheCompanyselectandpromotetalentsthroughopenandtransparentinternalcompetitionsorappraisals,providingequalpromotionopportunitiesforallemployees.

Remunerationmanagement

TheCompanyimplementafair,just,andtransparentremunerationmanagementsystem,andadheretotheprinciplesofgenderequalityandequalpayforequalwork,toensurethatallemployeesshareinourdevelopmentfruits.

Diversifiedrecruitment:In2023,femaleworkforceinSFaccountedfor15.8%,anincreaseof1.1%comparedwith2022.Ethnicminoritiesaccountedfor6.1%ofemployees,anincreaseof3,200fromlastyear.Inaddition,SF’soverseasbranches(subsidiaries)alsoactivelyemploylocalpersonnelintheplaceswheretheyoperate,andbytheendof2023,therewere2,510foreignemployees,anincreaseofnearly2timescomparedwith2022.

Femaleseniormanagers:131people

Seniormanagers:478people

27.41%

Payingtributetothepowerof“she”–thegrowthstoryoffemaleemployeesSFalwaysupholdsthecorevaluesofequalityandinclusion,andstrivestopromotethegrowthanddevelopmentoffemaleemployeesintheCompany.Inthefieldoflogistics,theCompanybelievesthatfemaleemployeesalsohaveexcellentskillsandgreatpotential.Withtheirkeeninsight,meticulousworkattitudeandunwaveringperseverance,theyhavemadeindispensablecontributionstothesustainabledevelopmentoftheCompany.

RightsandInterestsProtectionforFemaleEmployeesSFrespectswomen’sequalrightstodevelopmentanddeterminationintheirowncareers,andresolutelyeliminatesgenderbiasintheworkplace.Intheoffice,theCompanysetsup34babycareroomstocaterfortheneedsofnurturanceandbreastfeedingforfemaleemployeesinanyotherspecialoccasions.SFalsoprovidesthe“warmcareboxes”toprovidefemaleemployeeswithfemaleproductsincludinggingerteawithreddatesandbrownsugar,heatingpads,andhandcream.Inaddition,SFprovidesfemaleemployeeswithfreefemalehealthscreeningchecksforcervicalcancerandbreastcancer,anddistributesvariouscaringgiftstoallfemaleemployeesonWomen’sDayeveryyear.In2023,SFlaborunionestablishedtheFemaleEmployeeCommitteetopromotetheeffectiveprotectionoffemaleemployees’rightsandinterests.Thespecialrightsandinterestsoffemaleemployeesduringpregnancy,childbirth,andbreastfeedingwerewrittenintotheCollectiveAgreementofSFEmployees’RightsandInterests.

Recruitmentofvulnerablegroups:SFactivelyprovidesemploymentopportunitiesforthedisadvantagedgroupsinsociety,andprovidespositionswithlowerphysicalintensity(suchascustomerservice,management,warehousemanagement,professional,etc.)topromotetheemploymentofvulnerablegroups.Asoftheendofthereportingperiod,SFhadmorethan600employeeswithdisabilitiesinservice.

WangHuanzhen|13yearsofemploymentWangHuanzhenisworkingasacourieratSFWeifanginShandongProvince.AfterjoiningSF,sheloadsandunloadstrucks,distributesexpresseseveryday,rainorshine,andshedoesn’tleaveworkuntilsheseesthathercustomers’expressdeliverycatchupwiththefastestschedule.Withherhardwork,WangHuanzhenhasbecomeanexpertintheindustryandwonmultiplehonorarytitlessuchasthe“2023Women’sAdvancedIndividuals”award.FengLimei|10yearsofemploymentFengLimeiisthebusinessmanagerinSF’snorthernXi’andistrictinShaanxiProvinceandthemanagerofnearly30,000couriersinXi’an.AsthepresidentofXi’anPostalExpressIndustryLaborUnionFederation,FengLimeivisitsanaverageof200outletseveryyearandcollectsmorethan800demandsfromemployees.Withhersincerecareforcouriers,FengLimeiwonthetitleof“May1Women’smodel”in2023.

LiMeiyu|9yearsofemploymentAsaMalaysian,LiMeiyuiscurrentlyworkingasateamleaderforcasesregardingcustomerservicesatSFSingapore.Asa“Premiumcustomerserver”,LiMeiyuadherestotheconceptof“takingtheinitiativeandrespondingtoeverything”,carefullylistenstoandtimelyrespondstoeverycustomer’sproblem,andactivelysolvesproblemsforthem.Withherdedicatedservicetocustomers,LiMeiyuhaswonmultiplehonorarytitlessuchasthe“BestCustomerService”,“StarAward”and“2023IndividualExcellence”awards.

Thereare15,556femaleemployeeswhoundertookhealthscreeningchecksforcervicalcancerandbreast

cancerin2023.

Carryoutfemale-themedactivitiestoshowthe“she-power”ofSF

femaleemployeesInordertoaffirmtheoutstandingcontributionsmadebyfemaleemployeestotheCompany’smanagementanddevelopment,andencouragefemaleemployeestostandfirmontheirpositions,strivetomoveforward,andcompeteforexcellence,inMarch2023,SF’slaborunionorganizationsheldtheactivitywiththethemeofGoddessFestival,namely“Findingthebeautyin‘She-Power’andlookingforthegoddessinworkplace”.Throughtheselectionofthe“mostbeautifulemployee”,makeupteachinglivebroadcastandotheractivities,tohelpfemaleemployeesunwindwhileshowcasingthe“she-power”.CommunicationandExchangewithEmployees

SFgreatlyvaluesthevoiceofemployees.TheCompanyhasestablishedavarietyofopen,transparentandresponsivechannelstoencourageemployeestobeefficientandspeakout.SFoffersgreaterincentivesandopportunitiestogrowforemployeeswhoputforwardvoicesandsuggestionsthatarebeneficialtobusiness.Meanwhile,SFrecognizesandpraisesorganizationsthatactivelylistentovoicesandsuggestionsaswellasthosewhopromotetheimprovementandsolutionofproblems.Apartfromtraditionaltelephonechannel(laborunionhotline4006883783),networkchannel(“Echoplatform”and“Iwanttoreport”),mailboxes,etc.,SFbuildsdiversechannelsthatcanquicklysolveemployees’problemsinaccordancewithdifferentscenarios.Forexample,theproblemcanbequicklysolvedthroughplatformssuchasthe“EchoHelp”throughtheintelligentreplysystem,visitspaidbyrepresentativesoflaborunionand“CloudMaster”thatcanconnectthewholenetwork,whichcanswiftlyaddressemployees’problemsandappeals.

CommunicationChannelforSFPrimaryEmployees

3,863collectionofemployeeneedsthroughunionrepresentativechannels

95.8%

resolutionrateSFlistenstothevoiceofemployeesthroughvisitspaidbylaborunion’srepresentativesandothersimilarforms,communicateswithemployeesface-to-face,learnsabouttheirworkingconditions,welfarebenefitsandcareerdevelopment,andtimelyreportsfeedbackabouttheiropinionsandsuggestionstorelevantdepartments.

In2023

Representativefromthelabor

union

14,946

phonecallsreceivedbytheEmployeeCarehotlineCentre

96.1%

hotlineconnectionrateSFopensanemployeecarehotlinetoensuresmoothprocedureinchannelstocaterforemployees’needsonweekdaysandholidaysandprovidetimelypsychologicalsupportandproblem-solvingsolutionsforthem.

Employeecarehotline

broadcasts

Over

1.37million

livebroadcastviewsTheCompany’spolicieswillbedeliveredtothefrontlineworkersintheformoflivebroadcastatthefirsttime,includinginstitutionalprocess,systemtools,businessdevelopment,qualityimprovementandlogisticssupportandemployeewelfare.

Appealserviceforthefrontline

workers

13,834

appealscollected

98.4%

resolutionrateTheone-stopappealservicecollectseffectiveappealsfromemployeesmonthlytodistributetotherelevantregionalorganizationsforfurthersolutions.

One-stop

appealservice

98.9%

resolutionrateonthe

EchoplatformSFappliesindustry-leadingLargeLanguageModel(LLM)technologytobuildasmartservicecentreforcouriersincombinationwiththeinternalizationofactualscenesofSF,whichcancarryoutreal-timehuman-machinedialoguewithcouriers,respondtotheirquestions,andquicklyaddresstheirproblems.Thewholenetworkwillbepromotedby2023.

Smarttools

40,563

ofsolvedproblemsonthe“EchoHelp”throughtheintelligentreplysystem

AdviceandSuggestions

SFcontinuedtoscaleupthepublicityandpromotionofthesystemthatcollectsadviceandsuggestions,encouragingemployeestoputforwardreasonablesuggestionsaroundthe“fivelittlematters”(littleinventions,littlecreations,littleinnovations,littledesigns,littlesuggestions),promotingtheoptimizationofsystemandprocess,andreducingcostsandincreasingincome.In2023,basedontheProductivityandReasonableSuggestionManagementMechanism,theCompanyhassetupasupportingimplementationguidelinesandrewardmechanism,andestablished61reviewpanelsforthereasonableproposalstoidentifytheirrationalityandfeasibilityfromaprofessionalperspective,evaluatingthevaluepointsandcontributionsofvalues,andgivingdifferentdegreesofrewardstotherecommendationsthataredeterminedtobeadopted.Inaddition,theCompanyhasalsolaunchedarationalizationproposalplatformtoprovideemployeeswithamoreflexible,fastanddemocraticwaytooffersuggestions.

In2023,morethan30,000peopleparticipatedinproviding

suggestions,collectivelysubmittingover35,000proposals.Amongthese,1,428suggestionswereadopted,resultinginrewardsfor1,758people.

improvingoperationalefciencyensuringcompensationandbenetssafeguardingdeliveryoperations

enhancingsafetyinproductionimprovingservicequalityenhancingserviceskills

44%15%

17%

10%3%

Asoftheendofthereportingperiod,SFhadestablished

130laborunionsinitswholenetworkwith21,000representatives.

In2023,therewere161electedstaffrepresentatives,and

5staffrepresentatives’congresseswereheld.

SF’sCollectiveAgreementofSFEmployees’RightsandInterestsSigningCeremonySuccessfullyHeldInordertoensuretheeffectiveprotectionoftherightsandinterestsofallworkforce,inJuly2023,SFheldthe“FosteringSF’shigh-qualitydevelopmentandaccomplishinghappylaborers“collectivenegotiationmeetingandthesigningceremonyofCollectiveAgreementofSFEmployees’RightsandInterests.Withtheremotewitnessof761staffrepresentatives,12negotiationrepresentativesfromtheGroupsideandtheemployeesidecommunicated,negotiated,andexplainedaroundthedemandsandconcernsofexpressindustryworkers.Theyproposedadraftcollectivecontract,whichwasunanimouslypassedthroughademocraticvoteby161staffrepresentatives,andsuccessfullycompletedthesigningofthecollectivecontract.

SigningofCollectiveContractbyCompanyand

EmployeeRepresentatives

On-siteofSFCollectiveNegotiationMeeting

MaincontentcoveredintheCollective

Agreement

RemunerationWorkinghoursandHolidaysInsuranceandBenefitsSafetyandhealthatworkSpecialcareforfemaleemployees

VocationaltrainingDemocraticright

Rewardand

PunishmentSystem

EmployeeSatisfactionSFquarterlyconductssatisfactionsurveysforallemployees,andcontinuouslytracksthechangesinemployeesatisfactionandemployeeengagement.Italsoanalyzesanddevelopsimprovementplansaccordingtotheresearchresults,andacceptsthesupervisionoftheallemployeestowardstheimplementationofmeasures,andperiodicallyreviewstheimprovementeffect.In2023,theemployeesatisfactionis87.8%,anincreaseof1.4%comparedwith2022.In2023,duetotheCompany’sdeepeningchangesinitsbusinessmodel,theemployeeengagementshowsaslightdecline.TheCompanyhasfocusedandanalyzedkeyissues,respondedquicklyandformulatedimprovementmeasures.In2023,therectificationloopof115pointsforoptimizationhasbeencompleted.

Resultsofthe2021-2023EmployeeSatisfactionSurvey

202320222021Employeesatisfaction87.8%86.4%86.9%Employeeengagement84.7%86.2%87.5%

100%

coveragerateofemployeesintheSFCollectiveAgreement

ConstructionofTalentTeamSFtakeshumancapitalasitscorecompetitiveness,paysattentiontotheintroductionandincentiveoftalents,andcreatesanenvironmenttoattractskilledworkers.Itbuildsacomprehensivetalenttraininganddevelopmentplatform,andsupportsemployees’careerdevelopment,aimingforbuildingastableandefficienttalentsteam.TalentAttractionandRetention

Throughdiversifiedtalentstrategiesandtrainingplans,SFextensivelyattractstalents,establishesascientificandeffectiveperformancemanagementsystem,standardizesthewholeprocessofemployeeperformancemanagement,andfullyguaranteesthestabilityandvitalityoftalentteam.TalentRecruitmentSFfacilitatesonlineandofflinerecruitmentchannelssuchascampusrecruitment,internalrecommendationandonlinerecruitment,andpromotesinternprogramsandschool-enterprisecooperation,absorbingoutstandingworkersandstrengtheningtheCompany’stalentpool.DeepeningSchool-EnterpriseCooperationandBuildingaSolidAppliedTalentsTrainingChaininLogistics

SiteofSchool-enterpriseCooperationConference

InDecember2023,SFheldadiscussionandexchangeconferencewiththeSchoolofLogisticsManagementandEngineeringofZhuhaiCollegeofScienceandTechnologytofurtherdeepenschool-enterprisecooperationandbuildamoreefficientandpracticallogisticsappliedtalenttrainingmodel.Intheconference,reviewsandsummariesweremadetothedevelopmentof“SFClass”.Lookingahead,theplantoestablish“2024SFClass”andrelevantcurriculumtobeconductedwerealsodiscussedbybothparties.

SF-XUniversityEliteChallengeofSmarterSupplyChain

SiteofSF-XUniversityEliteChallengeofSmarterSupplyChain

SF-XUniversityEliteChallengeofSmarterSupplyChainisalarge-scalelogisticscompetitionforcollegestudentsacrossChina.Itrequiresparticipatingteamstoprovideinnovativesolutionsforsmartsupplychainandiscommittedtocultivatinginnovativetalentswithpracticalspirit.In2023,thecompetitioncovered603universitieswith4,649participants,rewarding163outstandingstudentswithPASScards(chancesofinterviewincampusrecruitment).

SFRegularPerformanceEvaluationandCommunicationMechanism

SFestablishesanemployeeperformanceinterviewmechanismtoprovideemployeeswiththeresultsoftheirperformancethroughtheinterview,andatthesametimeSFensuresthefairnessandobjectivityoftheperformanceappraisal.TheCompanypaysattentiontothequalityofperformanceinterviews.Itcarriedoutthe“ExcellentCaseSharinginPerformanceInterviewandImprovementPlanSigning”andcompiledthePerformanceInterviewGuidelinestostrengthenmanagers’performancecoachingawarenessandperformanceinterviewability.

PerformanceInterview

SFcarriesoutanannualperformanceevaluationforallemployeeseveryyear,aswellasamonthlyorquarterlyperformance

evaluationforemployeesindifferentpositionsbasedontheneedsofoperationandmanagement.In2023,100%oftheCompany’semployeeshavereceivedregularperformancereviews.PerformanceEvaluation

PerformanceEvaluationandFeedback

SFadherestotheperformancemanagementprincipleof“highquality,highyieldandhighreturn”,cultivatestheemployeeperformancemanagementcultureof“Commonpurposewithpracticalactions”,andeffectivelyleadsemployeestomakeprogresstogether.In2023,SFupdatedemployeeperformancemanagementmechanism,builtadiversifiedevaluationsystem,anddeepenedtheoperationsystemoffirstaccountabilitysystemtofurtherstandardizethewholeprocess.

Establishmentof“SFdiversifiedevaluationsystem”

DiversifiedValueCreationSystemInordertotaketheleadinvaluecreationofSFemployees,theCompanyestablishedadiversifiedevaluationsysteminlinewithculturalvalues,taking“on-jobdeliveryvalue”“cross-organizationalcollaborationvalue”and“servicesupportvalue”asitscore.Supportedbythe“difficulty-overcomingvalue”“talentretentionvalue”and“knowledgeempowermentvalue”,thesystemfirmlydefinedthevaluecreationdirectionforSFemployees,measuringemployeevaluecreationobjectivelyandeffectivelyidentifyingandmotivatingoutstandingtalents.

FirstAskingResponsibilitySystemInordertoleadfunctionalemployeestobetterimplementtheconceptoffirstquestionservice,SFhasincorporatedthefirst

askingresponsibilitysystemintotheemployeediversifiedevaluationsystemtoachieveamoreobjectiveandthree-dimensionalevaluationofpersonalvaluecontribution.In2023,theoverallpositiverateofemployeesincreasedfrom84.6%to98.4%,andtheaveragedemandresolutiontimedecreasedfrom40hoursto28hours.

Promotionofthe“FirstAskingResponsibilitysystem”

TalentsIncentives

EquityIncentivesSFgrantsstockoptionstoitsdirectors,seniorexecutives,coremanagementpersonnel,andkeystaffmembers.In2023,thefirstexerciseconditionsforthestockoptionincentiveplanfor2022havebeenmet,andatotalof1,252incentiverecipientshaveexercisedtheirstockoptions.HonoursSystemSFcombineshonoursandawardswithanhonourssystemtosetbenchmarksandmotivateoutstandingemployees.

Selectionorganization

Selectioncategory

HonorSystemofSF

Awardsetting

Honor

Annualexcellenceselectionofthe

CompanyAnnualexcellenceselectionoforganizationsDailyexcellenceselectionoforganizations

BestSFer

TopawardoftheCompany

“BestSFer”SocialResponsibilityAwardCustomerServiceAwardInnovationAwardOutstandingManagementAwardLong-termContributionAwardHeadquartersCategorySpecialAwards(KeyFigure/BusinessPioneer)IndividualawardsbypostsCollectiveawardsbydepartments,functions,andoutletsMoralmodelPerformancemodelInnovationmodelManagementmodelServicemodelExcellenceselectionofdistricts

Excellenceselectionoffunctionaldepartments

ExcellenceselectionofBUsandindependent

organizationsMonthlyselection

instantaward

Cheerfor

you

+=

Excellenceselection

oftheCompany

Special

awards

Progressiveupgrade

SF’stalentretentionmeasures

Fortheoutstandingemployeesintheperformanceevaluation,SFgivesincentivesfromtheaspectsofcareandreward,careermanagement,retentionandreturnvisittostrengthentheretentionofoutstandingtalents.

Careandreward–Stockoptionincentive–Offerextratwo-daypaid

leave–Displaythelistofoutstandingachievementsandawardexclusivegiftsandactivityfunds

Careermanagement

–Relyonthe“CareerDevelopmentAssistant”toencourageemployees’self-drivendevelopment,andpaybonusestooutstandingemployees–Providewell-performing

employeecultivationfund

Retentionandreturnvisit

–Conductresignationinterviewstoretainemployees–Visitresignedemployees

regularlyandsendthemgiftsonspecialholidays

SFTrainingPlanTrainingofBasic-LevelEmployees

Foremployeegroupssuchascouriers,warehousemanagers,customerserviceandsalesstaff,theCompanywillfocusonthecultivationoftheirserviceawareness,safetyawareness,andcommunicationskills.Whilepayingattentiontopersonnelperformanceimprovement,theCompanywillemphasizethesustainabledevelopmentofpersonnel,helpbasic-levelemployeestoimprovetheireducation,andpaysattentiontopersonallong-termdevelopment.

EchelonBuilding-UpofMiddleandBasic-LevelEmployees

TheCompanywillfocusonprofessionalfields,sortouttheabilitysituationofeachfunctionalorganization,andimproveabilitythroughtargetedtrainingmeasures.TheCompanycontinuestocarryoutcustomizedprofessionalabilitytrainingprojects,suchasreserveexperttraining,expertlectures,expertforums,andprovideslearningresourcesonworkplacegeneralforceandprofessionalabilityboutique,continuouslyimprovingemployeesintheprofessionalfieldandbenefitingemployees’long-termdevelopment.

SeniorManagementTraining

Adheringtotheguidanceandprinciplesofdifferentiatedempowerment,refinedmanagement,andnormalizedoperation,coveringthreemajorgroupsofbusinessmanagers,functionaldepartmentexecutives,andreserveexecutives,theCompanywillcarryouthigh-levelcadretrainingprojectssuchasbeacontrainingcamps,Fengxingplans,andreserveexecutivetrainingcamps:

SFhasintroducedinternalmarket-basedincentivesforlecturerstoincreasetheirtrainingwillingnessandquality:

Averagemonthlyeffectivehoursofinstructionincreasedby813hours,a31.9%increasefromlastyear.575newlecturershavebeenaddedduringtheyear,withaninstructoractivityrateof55.7%,up10%fromlastyear.

Developinghigh-qualitycoursestocreatekeyteamsvia“JizhiFengke”activityIn2023,inordertoprovidekeyteamswithmoretrainingresourceswhichmeettheactualneeds,SFhasorganizedthe“JizhiFengke”activity.Itbringstogethertheexcellentexperienceofallparties,collectsthestrengths,andcreateshigh-qualitydemandscenarioclassesthatarepracticalandeasytoreplicate.Thesecaneffectivelyexpandexcellentcourselearningresourcesforthekeyteamsanddevelopthequalityofskilledpersonnel.Atotalof9,376peopleparticipatedinthedevelopmentandevaluationofthecourses,andmorethan500high-qualitycourseresourcesweregenerated.

LecturerTeamBuilding

Intensivecreativeclassactivities

Morethan

2,000

Participantsincoursedevelopmentactivities

Certifiedcourses

Implementingtheconceptof“standardization+”andrebuildingthesystemofoutletreservemanagementtalentstraining

SFhasfocusedontheoutletreservemanagementtalents,andhasoptimizedtheend-to-endprogramfromtheprocessofselectiontotraining.TheCompanyhasimplementedtheconceptof“standardization+”tocreateanefficientandpowerfuloutlettalentgroup.In2023,SFhasspecifiedthestandardizedselectionprocesstoaccuratelyidentifytalents.Whileperforming“thefirststep”ofthetalentselection,SFhascarriedoutanumberofofflinetrainingactivities,including6trainingcampstoimprovethecapabilitiesofstationmanagers,and10“RuifengPlan”trainingsessionsforreservemanagers.Inaddition,eachregionhasestablishedasecondaryacademywithpersonalizedtrainingneeds,continuouslyenrichedtheonlinelearningresourcesforregionaltalents,andcarriedoutanumberofintensivetrainingandempowermentactivitiesintheregionforreserveandon-the-jobpersonnel.

Focusingon“benchmarkingmodelenterpriseandbroadeninghorizons”todeependigitaltransformationlearningThetrainingsystemofSFtransitteamfocuseson“benchmarkingmodelenterpriseandbroadeninghorizons”,andtheSFtransitteamactivelylearnsfromenterpriseswithsuccessfuldigitaltransformationandaretheindustrybenchmarks.In2023,SFtransitteamhasorganizedandimplementedthree“externalbenchmarkingenterprisevisits”,with“on-sitevisits+thematicexchanges”asthecore,tolearnfromtheirsecretsofefficientoperation.TheTeamcombinedtheaccuratediagnosisofinternalsituationswiththehighlightsoftheexternalbenchmarkingenterprisevisitstomatchthevaluepoints,effectivelytriggeringthethinkingofthetransittalents,deepeningthelearningofdigitaltransformation,andprovidingatalentguaranteeforthecontinuousexcellenceoftheSFtransitsite.

ExternalBenchmarkingEnterpriseVisits

SpecialTrainingCampforStationHeads

SFsupportsexteriortrainingforemployeesTotalinputsexceed

RMB4.6million

“SFSendsYoutoUniversities”

Totalnumberofemployeesobtainedacademiccredentialsorcertificates21,445

Totalamountofsubsidiesgrantedexceeds

RMB1.8million

EducationalbackgroundJuniorcollegeUndergraduate

StandardforthefinancialaidRMB5,000RMB10,000

“SFSendsYoutoUniversities”Project

The2nd“SFCup”NationalJobSkillsCompetitionWasHeld

“SFCup”NationalJobSkillsCompetition

In2023,TheCompanyheldthe2nd“SFCup”NationalJobSkillsCompetitiontostimulatetheenthusiasmoffront-lineemployeestostudyprofessionalskills,further“strengtheningskills,improvingqualityandprovidingexcellentservices”forcolleaguesindifferentpositionstoshowtheirpersonalvalue.Thecompetitionmainlyfocusesonthefourmajorpositionsofpickupanddelivery,warehousemanagement,drivers,andtransit.Afterfiercecompetitionintheregionalqualifiersandsemi-finals,atotalof225playerswereselectedforthefinalsandwenttoShenzhentocompeteinthesummit.

EmployeeCareandWelfareSFhasestablishedacomprehensiveandmultifacetedemployeecareandwelfaresystemthatpositivelyinfluencesthelifeofemployeesandtheirfamilymembersfromvariousaspects.TheCompanytakesemployees’jobsecurity,medicals,food,housingandtransportation,importantfestivals,importantmomentsandotherscenesastheentrypointtoestablishamulti-dimensional,sinkingsecurityandcaremechanism,understandstherealneedsofemployees,helpsemployeessolvepracticalproblems,enhancesthesenseofbelongingandhappinessofemployeestowardstheCompany,fosteringthecohesionandsenseofidentityofemployees.

EmployeewelfareandcaresystemSFprovidesemployeeswithavarietyofwelfarecaremeasuresfromthethreeaspectsof“ensuringbasicwelfare,improvingcaringtemperature,andhelpinglong-termdevelopment”.

Guaranteeingbasicwelfare

Raisingofcare

Supportinglong-termdevelopment

Statutorybenefit

Providinginsuranceandhousingfund,paidmaternityleave,paternityleave,parentalleaveandotherstatutorybenefits

SubsidiesProvidingfoodsubsidies,communicationsubsidies,transportationsubsidies,winterandsummersubsidies

LivingwelfareProvidingstaffdormitory,staffcanteen,remotework,andotherlivingwelfaresecurity

PhysicalandmentalhealthProvidinghealthcareservicessuchasfreephysicalexamination,onlineconsultation,videoconsultation,convenientmedicinepurchase,psychologicalconsultation,etc.FestivalcareProvidingvariousholidaybenefits/activitiesforemployeesandtheirfamilies

Deployingcare

Offeringfreeshipping/family-visitholiday/family-visittransportationallowance,etc.

Performancecare

Providingincentiveleaves,activityfundsandstudysubsidies

Pensionfordifficulties

Providingspecialgreetingsandassistanceforabnormalweather/naturaldisasters/majordiseases,etc

Careforfamily

Providingscholarships,grants,andotherbenefitstoemployees’children

Recreationalandsportsactivities

Organizingteambuilding,encouragingparticipationinculturalandsportsactivitiesandholdingartactivities

Educationandskillupgrading

Providingsubsidiesforeducationandskillsupgrading

DiversifieddevelopmentwithintheCompany

Smoothdevelopmentpathwaysfortransferandtransformation

Honorandcommendation

Carryingoutdailyandannualmeritrecognition

Training

Providingmultiplelearningresourcesandchannels

Employeewelfarecaresystem

GuaranteebasicwelfareInadditiontostatutorybenefits,SFalsoprovidesemployeeswithcomprehensiveanddiversewelfaresecurity,includingprovidinglivingwelfarefacilitiessuchascanteensanddormitories,allowingemployeestochooseremoteworkingandflexibleworkinghourstomeetthepersonalizedofficeneedsofemployees.Inaddition,thecompanywillhonoranumberofcaremeasuressuchasfoodsubsidies,communicationsubsidies,transportationsubsidies,winterandsummersubsidiesaccordingtothepositionsofemployees,soastoimplementtheactionofcaringforemployeestoimprovethequalityoflifeandhappinessofemployees.CareforthePhysicalandMentalHealthofEmployeesSFalwaysputsthehealthandsafetyofemployeesinthefirstplace,adherestothe“people-oriented”developmentprinciple,providesemployeeswithafullrangeofphysicalandmentalhealthsupport,andstrivestoprotectthephysicalandmentalhealthofemployees.

SafeguardingphysicalhealthSFcaresaboutthehealthofitsemployees,providesannualphysicalexaminationforallemployees,andprovidesdifferentphysicalexaminationpackagesaccordingtotheageandjobclassificationofemployees,tohelpemployeesidentifyhealthrisksandgettimelymedicalreminders.

Healthcheck-upsforemployeeswereorganized,benefiting192,000people,includingcancerscreening,treatmentandrecuperationforfemaleemployees,andfreemedicaltreatmentfortraditionalChinesemedicine,dentistry,andophthalmology.Healthcheck-up

医医医医医

Forespace(Fengsheng)platformhasintroducedtheMedicalHousekeeperserviceandprovidedonlineconsultationanddrugpurchasepreferentialservices,withatotalof2,657onlineconsultationsand5,468drugpurchaseservices.

MedicalHousekeeperService

SFalwaysputstheprotectionofcouriers’rightsandinterestsinthefirstplace,andtakesmultiplemeasurestoprotecttheirhealthandsafety

Safeguardingcouriers’health

SFoperatesonlinemedicalconsultationplatformwithcouriersprovidingconvenientservice,andtheannualcumulativeconsultationreachesabout19,000people

Equippedwithfirstaidmedicinebox,thenetworkconfigurationofSFismorethan25,000Couriers’safety

Summercoolingactivitieswereheldinhotsummerareas,coveringmorethan10,000outletsandbenefitingmorethan630,000peopleInextremelycoldweather,thewholenetworkisequippedwithscarves,gloves,kneepadsandothercoldmaterials,andemployeesinhigh-coldareasareprovidedwithheatingneckerchiefExtremeweather

PurchaseofcommercialinsuranceforallcouriersataninvestmentcostofaboutRMB55millionOutstandingcouriersrewardseriousillnessinsurance,thecumulativebenefitof57,000people,theinvestmentcostofaboutRMB8.6millionPurchaseof

insurance

Staffdormitoriescover43businessareas,with12,677bedsprovided

CareforMentalHealthSFattachesgreatimportancetothementalhealthofemployees,andhelpsemployeesgrasppositivementalhealthconcepts,mastermentalhealthknowledge,andrelieveemotionsandpressurebysettingupamentalcareservicehotline,buildingapsychologicalcounselingplatform,providingpsychologicalcounselingservices,holdingmentalhealthlecturesandotheractivities.

CareaboutMentalHealth

MentalHealthActivities

One-to-onepsychologicalcounselingservicefromtheonlineandofflinehasservedformorethan1,000peopleSettingupa24-hourhotline

Psychological

care

MentalhealtharticleswerepushedviaForespace(Fengsheng)platform,serviceaccountandotherchannels,withmorethan530,000views

The“ShunXinRuYi”self-psychologicalrelaxationexperienceplatformhasbeenviewedmorethan180,000timesPlatformpublicity

SFhasorganized134psychologicalcarelectureswithmorethan220,000

participantsSFhasarrangedShunXinRuYiLecturefor56times,coveringmorethan22,000people

lectures

800Shunxinservicecentershavebeenset

atoutletsacrossthenetwork

631psychologicalactivitieswereconducted,coveringmorethan35,000peopleDistricthappinesstourofpsychologyhasbeensetfor51eventswithover2,000

participantsPsychological

activity

Promotionofthewarmthofcare

SFdeeplyunderstandstheneedsofemployees,caresaboutthelifeandworkstatusofemployeesandtheirfamilies,helpssolvepracticaldifficultproblems,andcarriesoutavarietyofemployeeactivitiestopromotework-lifebalanceandenhancementofemployeecare.CareaboutEmployees’FamiliesSFactivelycarriesoutactivitiesforthecareofemployees’families,andprovidescorporatewelfareforemployees’familiestoenhancetheirhappinessandsenseofbelonging.

PatrolvehiclefortheCompanyAnnualCelebrationNumerousoffamilymembersSteppingintoSF

GoldenAutumnSubsidies:theCompanyofferedstudentsubsidiesof

RMB1.624milliontothefamiliesof446

employeeswithseriousdiseasesandmajordifficultiesScholarshipsforcollegeentranceexams:

RMB362,000scholarshipsweregivento158childrenofemployeeswhowereadmittedtouniversities

Carryingoutgreetingsandassistanceactivities

TheCompanyvisitedmorethan20,000employeesandtheir

familieswithdifficulties,andtheamountofassistancewasaboutRMB11.61million

OfferingStudentSubsidies/Scholarship

Culturalandsportsactivities,

SFcarriesouthealthyanddiversifiedemployeeactivitiestoenrichtheirleisurelife,stimulatetheirvitalityandcohesion,increasetheirhappinessandsenseofbelonging,andbalancetheirworkandlife.In2023,SFheld14,164variousactivitiessuchasbirthdayparties,symposiumsandfungames,covering484,000people.

Holdingthefirst“HappyEmployeeFestival”and“FourthCultureandArtsFestival”In2023,SFhasheldthefirst“HappyEmployeeFestival”and“FourthCultureandArtsFestival”.TheFestivalbroughttogethermorethan60organizationsandattractedmorethan300employeestoparticipateinthefestival’sentries.DuringtheFestival,morethan800employeesinGuangdongProvincegatheredtogether,andthetrafficoftheonlinelivebroadcastingroomreachedmorethan560,000,whichconveyedthisatmosphereofjoyandarttoothers.TheFestivalnotonlyprovidesaplatformforemployeestodisplaytheirtalentsandexchangeart,butalsofurtherenhancesthecohesionandcentripetalforceoftheenterprise.

First“HappyEmployeeFestival”and“FourthCultureandArtsFestival”

“Fengba”CulturalandSportsActivities

11interestclubswereestablishedwithabout8,700members,andover20majorsportseventswereorganized

Carriedout“Fengba”CulturalandSportsActivities

BuildingtheLineofSafety

ToadapttothechangesintheexternalpolicyenvironmentandtosupportthestableexpansionoftheCompany’sdiversifiedbusiness,SFhaspaidgreatattentiontoandcontinuouslystrengthenstheconstructionofthesafetyriskmanagementsystem.Wearecommittedtocreatingasafeandhealthyworkingenvironmentforallworkforce.

PrinciplesandCommitmentsSafetyManagementPrinciplesSafetyfirst,focusonprevention,legalcompliance,fullperformanceofduties,continuousimprovementandsounddevelopment.SafetyManagementCommitments

1.Abidebynationallawsandregulations,standardsandmanagementrequirements;

2.Company’stopexecutiveisthefirstresponsiblepersonforsafetyofSF,andthechiefleadersofeachorganizationarethefirst

responsiblepersonforsafetyoftheirownorganizationsIndailywork,theyimplementthecodeofconductandplaytheleadingroleinsafety;

3.Adheretotheprincipleofpeoplefirstandfocusonpreventionandachievethetargetof“zeroaccidents”;

4.Providenecessarysupport,includingmanpower,resourcesandfunds;

5.Establishcommunicationchannelsonsafetymanagementforallemployeesandstakeholders;

6.Controlproductionsafetyriskseffectivelyandtakeactionstominimizetherisks;

7.Optimizetheallocationofsafetymanagementresourcesandcontinuouslyimprovethesafetymanagement;

Allofourstakeholders,includingemployeesandcontractors,areobligatedtokeeptheCompany’scommitmenttoproductionsafetymanagement.

SafetyManagementSystemSFhasbuiltacomprehensiveworksafetyframeworkandestablishedagroup-wideworksafetycompliancedatabaseaccordingtopertinentnationallaws,regulationsandstandardsinthefieldofproductionsafety,suchasthestandardofoccupationalhealthandsafetymanagementsystem(ISO45001),theGuidelineofChinaOccupationalSafetyandHealthManagementSystem(GB/T33000)andNOSAfive-starsystemstandard(health,safetyandenvironment).Thecomprehensiveworksafetyframeworkconsistsof66elementsofproductionsafetyin11modules.

ComprehensiveWorkSafetyFramework

Occupational

Health

SiteManagement

PeopleManagement

PostingandDeliverySafety

Facilitiesand

Equipment

Management

StakeholdersManagement

Transportation

Safety

Emergencyand

Accident

RiskAssessmentandControl

BasicManagement

ContinuousImprovement

SafetyManagementStructureandResponsibilitiesSFhasestablishedthethree-tiermanagementorganizationsconsistingoftheheadquarters,regionalDepartmentandPrimary-levelDepartmentandimprovedsafetysystemstoeffectivelysuperviseandmanagethesafetymanagementofallregionsandguaranteethesafeproductionandoperationofthewholeCompany.TheRiskManagementCommitteeoftheBoardofDirectorsisaccountableforoverseeingthecomprehensiveriskmanagementofthecompany(includingsafetyrisks),assessingthecompletenessandeffectivenessofthesafetyriskmanagementsystemandprovidingsuggestions.TheChairmanandChiefExecutiveOfficer(CEO)hastheprimaryresponsibilityforourproductionsafety,andourSafetyCommitteeisdirectedbytheCEOandconsistsofseniormanagementfromeachbusiness.TheSafetyCommitteesupervisesandmanagestheimplementationofouroverallstrategies,targetsandperformanceinproductionsafety,andregularlyreportstheprogressinsafetyriskmanagementtotheRiskManagementCommitteeoftheBoardofDirectors.

Achievementsof2023SafetyManagementTargets0majorfireaccidentsAchieved0majorcasualtyaccidentsAchievedAccidentrateofcasualtiesofonemillionexpressdeliveries

decreasedby10%year-on-year

Achieved

ThecasualtyaccidentratecoversallworkforceinSF.

SFSafetyManagementStructure

SafetyProductionCommittee

ComposedoftheCEOandseniormanagementfromeachbusiness.Itisresponsibleforformulatingandsupervisingthecompany’soverallpolicies,targetsandplansofsafetymanagement,anddeterminestheaccountabilitiesforhigh-risksafetyincidents.RegionalSafetyProductionCommittee

Composedoftheleadersofeachregionalanddistrictdepartments,andresponsiblefortheimplementationofthesafetymanagementofthecompany’ssafetyproductioncommittee.SafetyManagementLeadershipTeam

ComposedoftheCommandandSafetyCenteroftheheadquarter,functionaldepartmentsandthesafetymanagementleadersofsubsidiaries.Theyareresponsibleforallcoordinationofsafetytasksandimplementationofsafetymattersinarapidpace.

HeadquartersRegional

Primary-levelDepartment

SafetyManagementSystemCertification

SFhasobtainedtheISO45001(theoccupationalhealthandsafetymanagementsystem)certificationforallbusinessoperations.

TheThird-PartyAuditofSFAirlinesSafetyManagementSystem(SMS)

ISO45001Certification

ShenzhenS.F.TaisenHolding(Group)Co.,Ltd.JiangxiFengyuShuntuTechnologyCo.,Ltd.SFCo.,Ltd.ShenzhenSFComprehensiveLogisticsServiceCo.,Ltd.SFGroup(Shanghai)Co.,LtdSFMultimodalTransportationCo.,Ltd.GuizhouSFCo.,Ltd.

ShenzhenSFInternationalSupplyChainManagementCo.,Ltd.ShenzhenSFFreightCo.,Ltd.ZhejiangShuangjieSupplyChainTechnologyCo.,Ltd.ShenzhenFenglangSupplyChainCo.,Ltd.ShanghaiShunxiaofengDistributionCo.Ltd.GZSFPharmaceuticalSupplyChainCo.,Ltd.WuhanShunfengZhidaLogisticsCo.,Ltd.Phoenix-Wings(Shenzhen)Co.,Ltd.ShenzhenXingshunIntelligentSupplyChainCo.,Ltd.SFAirlinesPassedtheThird-PartyAuditonSafetyManagementSystem(SMS)

InNovember2023,SFAirlinessuccessfullypassedthethirdpartyauditonthesafetymanagementsystem(SMS)conductedbytheCivilAviationManagementInstituteofChina.ThisfurthertestifiestheCompany’sintegrity,conformityandeffectivenessinsafetymanagementsystem.

100%Percentageofbusinessoperations

coveredbyISO45001.

SafetyManagementMeasuresSFisimprovingthe“dualpreventionmechanism”ofriskclassificationandcontrolaswellaspotentialhazardinspectionandelimination.TheCompanyhaveestablishedascientificandsystematicmanagementprocessinsafetyriskprevention,controlandhazardelimination,whichhasformedadoublefirewalltopreventproductionandsafetyaccidents.ThisenablesSFtocontinuouslyimproveitssafetymanagementcapabilityandguaranteethesafetyofitsproductionandoperationinallaspects.

SFSafetyRiskIdentification,EvaluationandControlFrameworkBuildanorganizationalstructure

Setupasafetymanagementworkinggroup

Defineevaluationunits

Defineevaluationunitsbasedonfieldscenariosassociatedwithdepartments,positions,operationalactivitiesandoperationalprocedures

Identifysourcesofsafetyrisks

Identifyhazardoussourcesfromthefourelementsof“people,materials,managementandenvironment”

Assesstherisklevelofsafety

EvaluatetherisklevelofsafetyusingtheLevelofRiskEvaluationofOperationalConditions(LECmethod)

Safetyriskclassificationandcontrol

Identifythemanagementlayerbasedonthelevelofsafetyrisk

Developriskcontrolmeasures

Controlmeasuresincludebutarenotlimitedtoengineeringandtechnicalmeasures,managementmeasures,educationandtrainingmeasures,personnelprotectionmeasures,andemergencymeasures

SafetyRiskClassificationandControl

SFhaschangedthesafetyriskassessmentmethodfromMEStoLEC.Itdeterminesthemagnitudeoftheriskvaluebymultiplyingthefrequencyofexposuretothehazardousfactor,theseverityoftheconsequencesandthelikelihoodofoccurrenceoftheevent.AllregionsarerequiredtoidentifyandassesssafetyrisksatleastonceayearaccordingtotherequirementsoftheHazardSourceIdentification,RiskAssessmentandControlManagementRegulations,andthencategorizetherisksintofourlevelsinaccordancewithSF’sriskclassificationcontrolprinciplesanddeterminetheriskcontrollevels.RiskLevelRiskValueAssessedbyLECMethodRiskControlLevelLevelI:MaterialriskD≥320

Companylevel(functionaldepartmentsoftheheadquarters)

LevelII:Majorrisk160≤D<320Departmentlevel(business/allocationarea)LevelIII:Generalrisk70≤D<160

Workshoplevel(transitcenter,serviceoutlets/supplystation)

LevelIV:LowriskD<70Team/positionlevel

SFCompletedThird-PartySafetyRiskAssessmentIn2023,SFengagedindependentthird-partyprofessionalevaluationorganizationstoconductcomprehensiveandindependentsafetyassessmentandrisksourceidentificationinmultiplebusinessoperationslocatedinSouthChinaandNortheastChina,includingdistributioncenters,transitdepots,collectanddispatchpointsandservicepoints.Inaccordancewiththeresultofthethird-partysafetyriskevaluation,SFhasoptimizedandupgradedthecurrentsafetyrisksourceidentificationtool,thustofurtherenhancetheapplicabilityandcomprehensivenessofthisassessmenttool.Asthetoolhasbeenwidelyappliedandpromotedacrossthenetwork,theCompanyhassignificantlyimprovedtheworkefficiencyinthesafetyriskassessment.

In2023,theCompanyorganizedacomprehensivesafetyriskidentificationandevaluationregardingtotheworkflowofallpositionsin55regionsacrossthenetwork.Atotalof835safetyrisksourceswereidentifiedandappropriateriskcontrolmeasureswereimplemented.Thesemeasuresincludebutarenotlimitedtopromotionoftoolsusedforidentifyingsafetyrisksources,optimizationofsecurityriskmanagementprocess,andtrainingandcommunicationofsafetyrisks.

MajorriskGeneralriskLowrisk

safetyrisk

sourcesintotal

Accordingtothe2023inventoryofproductionsafetyrisk,theCompanyconductedaspecialtrainingonKeyRisksandControlMeasuresofProductionSafetyforsafetymanagementpersonnelandfunctionaldepartmentmembersacrossthenetwork.Withcasesandpictures,thistrainingdeepenedtheirunderstandingofthesafetyrisklistof2023andallowedthemtolearnanddiscussthekeysafetyrisksandcontrolmeasures.

SFsafetyrisktrainingscene

SFsafetyriskassessmentonsite

TheCompanyattachesmuchimportancetofeedback,suggestions,andinquiriesfromouremployeesonsafetymanagement.WeencourageouremployeestoprovidesuggestionsandfeedbackonsafetymanagementimprovementthroughvariouschannelstotheSafetyProductionCommittee.Thisproactiveapproachhelpspreventpotentialsafetyrisksinatimelymannerandcontributestothecontinuousimprovementofoursafetymanagement.

Channelsforreportingsafetyincidents

FengshengApp——“ProvideFeedback”

LaborUnionHotline

“SafetyWhistleblower”

campaign

LaborUnionWeChatService

SafetyHazardsInvestigationandManagement

ComprehensivesafetyhazardeliminationprogramSpecialsafetyhazardeliminationprogram

Investigationandeliminationofmajorsafetyproduction

hazardsprogramInvestigationandeliminationofsafetyhazardprogramIdentificationandevaluationofhazardsourceprogramSafetysystemevaluationprogram

Transitdepots:specialsafetyhazardelimination

programinbeltconveyor,equipmentpadlocking,forklift,cagetrolleyandbuildingstructureonrainyandsnowydaysFleetmanagement:vehicleinspection,tailgatetrucks,and

fixingofvansandcagedtrucksPropertymanagement:summer/winterelectricityfor

firefighting,chargingarearenovationTerminalmanagement:standardizationofsafetyand

appearancemanagementoftwo-and

three-wheeledvehicles

55%

Percentageofthebusinessoperationsthat

hasbeenevaluatedbytheheadquarters

intermsofsafetyproductionsystems

Percentageofdistributioncenters

thathasbeenevaluatedbytheheadquarters

Thedistributioncenterisaspecificareausedforreceiving,storing,loadinganddispatchinggoodsinthelogisticstransportationprocess.

Operationalandelectricalsafety

OperationalSafetyofPersonnelatTransitDepotsCase:EliminationofOperational

ViolationsatthePlatformSFutilizestheSharp-eyedPupil(慧眼神瞳)snappingfunctionandintelligentvideorecognitiontechnologytocapturepersonnel’sunsafebehaviorsontheplatforminrealtime,andissuetimelywarningstoon-sitepersonnelandvideosupervisors,topreventsafetyaccidents.

Monitorscreenof“Sharp-eyedPupil(慧眼神瞳)”intransitdepotsChargingcabinetsinthechargingareasofoperatingsites

Case:FireSafetyRiskEliminationPrograminChargingAreas

SFconductsfiresafetyhazardinvestigationinthechargingareasofitsoperatingsitesacrossthenetwork,anddrawsupcorrespondingfirepreventionandsafetymanagementmeasuresincluding:

Installhangingpowderextinguishingdevices

Arrange24-hourvideo

monitoringpatrol

PrimarySafetyManagementQualificationRequirementsforSFContractors

Essentialqualificationrequirementsforthecontractorsinclude:

Havingabusinesslicensethatmatchesthebusinessservicesitprovides;

Nomajororabovelevelworksafetyaccidentwithinoneyear;

Havingapplicablepersonnelqualificationcertificate,specialequipmentuseregistrationcertificateandtransportvehiclelicense;

Purchasingnecessaryinsuranceforemployees,suchastransportation,warehousingorpersonalinjury(accident)insurances.

ofcontractorshavesignedthesafetymanagementagreement

SFSafetyTrainingSystem

SeniorManagementHold“professionallectures”tofacilitatetheexchangeofexcellentmanagementexperience,thusempoweringseniormanagementbyequippingthemwithsafetymanagementskills.SafetymanagementprofessionalsPrrovidevariousformsoftrainingforsafetymanagementprofessionalswithinthenetwork,includinginternalsharingsessions,externaltutoringsessionsandspecialsafetytraining.Allworkforce

Developtheirownsafetytrainingagendabyeachregionacrossthenetwork,andprovidestandardsafetytrainingforallemployees(includingcontractors)intheregion.

OccupationalHealthandSafetyTrainingSFhasestablishedacomprehensivesafetytrainingsystemthatofferstargetedsafetytrainingcontentbasedondifferentlevelsandpositions.TheCompanyregularlycarriesoutofflinetrainingactivitiessuchassafetyproductionmonth,safetyknowledgecompetition,andfindingpotentialsafetyhazards.Wealsopostonlinesafetytrainingmaterialsrelatedtoholidaysafety,peakseasonsafety,seasonalsafetyandemergencysafetytoallemployeestocontinuouslystrengthentheirsafetyawareness.

SFprovidessufficientinternaltrainingresourcesforsafetymanagementpersonneltoobtainprofessionalqualifications.Bytheendofthe

ReportingPeriod,thenumberofemployeeswithsafetyqualificationcertificatesacrossthenetworkreached940.

Atotalof27safetytrainingsessionswereprovidedforsafetymanagementprofessionals,including:

Safetymanagementsharingsessions

Externaltutoringsessions

Specialsafetytraining

SFSafetyTrainingPerformanceDatain2023

Totalsafetytrainingsessionslaunched

96,000

Cumulativenumberofparticipants676,000people

CoveragerateofHealthandSafetyTraining(includingemployeesandcontractors)in2023

SafetyEmergencyDrillInaccordancewiththerequirementsofnationallawsandregulationssuchastheEmergencyResponseLawofthePeople’sRepublicofChinaandtheWorkSafetyLawofthePeople’sRepublicofChina,SFhasformulatedaseriesofemergencyresponseproceduresandstandards,andestablishedandimprovedtheplanningsystemtoprovideemergencyresponseguidance.Inthisway,theCompanyhaseffectivelyimproveditsemergencyresponsecapabilities.In2023,SFmaintainedtheComprehensivePlanforWorkSafetybyupdatingatotalof35emergencyresponseplans.Apartfromfiredrillsinaccordancewithnationalregulations,theCompanyalsoregularlyorganizesdiversifiedemergencydrillseveryyearcenteredonexplosionprevention,anti-terrorism,trafficaccidentsandpublichealth.TheseinitiativesaredesignedtoimproveSF’semergencyresponsecapabilities.

SFAirlinesNighttimeEmergencyRescueScene

SFAirlinesConductedtheFirstLarge-ScaleNighttimeEmergencyRescue

CivilAviationExerciseInDecember2023,SFAirlinesinShenzhenandEzhoucooperatedwiththeEzhouHuahuAirporttocarryoutalarge-scalecomprehensiveemergencyrescueexercisenamed“MissionAccomplished2023”.Thisexercisewasthefirstlarge-scaleemergencyrescuecomprehensiveexercisecarriedoutbydomesticairporthubatnightwithall-cargoaircraftasthesimulatedmodel,anditwasalsothefirsttimefortheCompanytocarryoutpracticalexerciseinthewayof“oneexercisefortwoplaces”(i.e.,settingupanemergencycommandcenterattheheadquarters,combiningwithShenzhenandEzhouforcoordinateddisposal).Thisdrillsuccessfullycompletedthefirefighting,medicalrescue,aircraftremovalandotherpracticalexercisesubjects,whichachievedthepurposeofstrengtheningthecooperationbetweenthetwoplacesinemergencyresponseandenhancingthesyntheticemergencyresponsecapability.ThevaluablepracticalexperiencegainedfromthisexercisealsoplayedapivotalroleinconstantlyenhancingcapabilitiesofSFAirlinestohandleemergencies.

SFFireEmergencyDrillScene

Atotalof13,000drillswereconducted,withanaccumulatedparticipationof440,000people

2023SFFireDrillsToimproveemployees’safetyawarenessandemergencyresponsecapabilities,andtoensurethesafetyoftheCompany’sproperty,packagesandemployees,theCompanyorganizedsafetyknowledgetrainingandemergencydrillsin2023,involving55regionsacrossthenetwork,andrewardedthoseregionsthatactivelyorganizeddrillsandperformedwell.

BuildingResponsibleChainTogetherUpholdingthecorevalueofintegrityandcommitment,SFattachesgreatimportancetosuppliermanagement,andadvocatesasoundcooperationenvironmentofequality,mutualrespect,transparency,developmentandmutualbenefit.Overtheyears,SFhasbeenstrivingtoreachlong-term,stableandwin-wincooperationwithsuppliersandpartners,andtobuildaresponsiblesupplychaintogetherwiththem.SupplierManagementSystemSFcontinuedtoimproveitssuppliermanagementsystem,implementedastrictsuppliermanagementsystem,andstrengthenedESGriskidentificationandmanagementinthesupplychain.In2023,thecompanyhasupdatedCriteriaforSupplierManagement,furthersupplemented,andimprovedthesupplieraccessprocessstandards,accessconditions,performanceevaluationstandards,on-siteevaluationstandards,etc.,tocontinuouslystrengthenthesupplierrefinedmanagementabilityandreducetheriskofsuppliercooperation.

OrganizationalStructureofProcurementSupervisionCommittee

RiskSupervisionofProcurementManagementStructureIntheprocessofdecision-makingandexecutionofprocurementactivities,SFhasarisksupervisionorganizationtocarryoutindependentriskmonitoringofthewholeprocess.Atthesametime,thecompanymakespurchasingstrategiesanddecisionsthroughthecollectivedecision-makingmodeoftheStrategicProcurementCommittee.UndertheCommittee,aPurchasingSupplyChainCenterissetup,responsiblefortheexecutionofpurchasingdecisions,purchasingdemandanalysis,andsuppliermanagement.LifecycleManagementforSFSuppliers

Risksupervisionofthe

procurementprocess

RiskSupervisionOrganization

Decision-making,management,andExecutionofprocurementStrategicProcurementCommittee

PurchasingSupplyChainCenter

Classificationandgrading

Accordingtothesupplier’scooperationperformance,theCompanyadoptsdifferentiatedanddynamicgradingandclassificationmanagementforsuppliers.Accessaccreditation

Therequirementsforsupplieradmissioncertificationareclarifiedintermsofadmissionchannels,admissionconditions,andcertificationauditprocess.Performancemanagement

TheCompanyestablishesascientificandrationalperformancemanagementandevaluationmechanism,developsquantifiableperformanceevaluationcriteriaandconductsmulti-departmentalperformanceevaluations.

Routinemanagement

Threemechanismshavebeenestablishedtostrengthentheroutinemanagementofsuppliers:

atrainingandcoachingmechanism,aroutineauditandinspectionmechanism,andaninformationchangeapprovalmechanism.

Exitmanagement

Therearetwoformsofsupplierexitmanagement:

penaltyexitandnon-penaltyexittostandardizethesupplierexitprocess.Penaltymanagement

DigitalManagementofSuppliersSFhascontinuedtopromotetheupgradingofsuppliers’digitalandintelligentmanagement.TheCompanyhasenhancedtheefficiencyofsuppliers’managementandstrengthenedtheriskcontrolcapabilityofsuppliercooperationthroughvariousinitiativessuchastheconstructionofsupplierManagementDashboard,supplierDigitalArchivesandsupplierLabelingSystem,andtheestablishmentofsupplierriskmodels.

SupplierDigitalArchivesGraduallyoptimizesupplierportraitandstrengthensupplierresumemanagementtoprovidedecisionmakerswithbettersupplierinformationandreduceprocurementrisks.SupplierManagementDashboard

Establishsuppliermanagementdashboardwithdifferentlevelsandcategoriesdimensions,achievingdynamicreal-timemonitoringofsupplierresources,toprovidedecision-makingassistanceformanagement.

SuppliersLabelingSystem

Buildsupplierlabelingsystemandimplantthelabelsintothebusinesssystemforemployeestoquicklyidentifyandpreventsuppliercooperationrisks,therebyimprovingtheefficiencyofprocurementdecisions.

SupplierRiskModels

Buildasupplierriskmodelincludingtradecomplianceriskscreening,affiliationidentificationandsuppliercreditevaluationtorealizesupplierriskcontrolinthewholeprocess.

SupplierManagementandEvaluation

TheCompanyregularlyconductssupplychainassessmentsandidentificationaboutenvironment,healthandsafety,laborrightsandethicalrisk.Throughregularsupplieron-siteaudits,writtenauditsandotherway,SFassesstheperformanceofsuppliercooperationandbasedontheperformancetoputforwardrectificationrecommendations,urgesupplierswithmanagementdeficienciestomakerectificationsandfollowupontheirimprovementinatimelymanner.Besides,SFwillrecognizeoutstandingperformersandsetanexcellentexampleofcooperation.

In2023,SFconductsacomprehensiveevaluationandmanagementofsuppliers:

SFauditedover1,600suppliersonsite,withanauditpass

rateof

93.6%.

SFcarriesoutexcellentsupplierevaluationandrecognizesmore

than60outstandingsuppliers.

ThepercentageofnewsuppliersscreenedthroughCSRstandard

is

99.29%

Thepercentageoftargetedsuppliersthathavegonethrougha

CSRassessment(e.g.questionnaire)is100%

ThePercentageoftargetedsuppliersthathavegonethrougha

CSRon-siteauditis

96.46%

Thepercentageornumberofaudited/assessedsuppliersengaged

incorrectiveactionsorcapacitybuildingis

79.03%

SupplierEnvironmentalandSocialImpactAssessmentSFpaysattentiontosuppliers’environmentalandsocialperformanceandstrictlyregulatesthebehaviorofsuppliersintheareasofenvironment,societyandlaborrightsandinterests.Bydoingthese,SFpromotessupplierstostrengthentheirownperformanceinsocialresponsibilitiessuchasinenvironmentalandsafearea.SFfocusesonthefollowingareasinsupplierenvironmentalandsocialriskassessment:

In2023,thecompanycontinuestobuildavaluechainthathasapositiveimpactonsocietyandtheenvironmentthroughthefollowinginitiatives:

EnvironmentalprotectionHealthandsafetyLaborrequirementsandprotection

Environmentalpermittingandreporting

PollutionpreventionExhaustemission

OccupationalsafetyEmergencypreparedness

LaborrequirementsFairnessandequalityEmployeeprotection

SFincorporatesCSRclauses,includingenvironmentalprotection,healthandsafety,andlaborrights,intosuppliercontracts.

Whenconductingsupplieradmissionandevaluation,SFpaysattentiontothecertificationofrelatedsystemsinvolvingISOenvironment,occupationalhealthandsafety,andinformationsecurity.SFregularlyevaluatessuppliers’environmentalandsocialpractices,andincludessuchperformanceasoneoftheindicatorsintheirperiodicsupplierreviews.SFconductson-siteauditsofsuppliersonkeyenvironmentalandsocialissues,andprovidesrectificationrecommendationsandsupporttosupplierswithdeficiencies.

In2023,thepercentageoftargetedsupplierswithcontractsthatincludeclausesonenvironmental,labor,andhumanrightsrequirementsis

99.29%.

Greenprocurementrelatedcourses

BuildtheSustainableSupplyChainFollowingtheprinciplesoffairness,impartialityandopenness,SFhasestablishedstandardsoftransparentadmissioninthefrontstageofprocurement,afairprocessatthemiddlestageandfairsupervisionatthebackendtoensurearesponsibleandsustainableprocurementenvironment.GreenProcurementSFhasformulatedtheRegulationsonGreenProcurementManagementtoaddcorrespondingenvironmentalprotectionrequirementstothelifecyclemanagementofsuppliers.Atthesametime,SFpromotessustainableconceptsamongprocurementstaffthroughinitiativessuchasonlineandofflinetraininganddailyadvocacy.Insomeextent,SFgivesprioritytotheprocurementanduseofrawmaterials,productsandservicesthatareconductivetoenvironmentalprotection,suchasenergysaving,watersavingandmaterialsaving,inordertoguaranteetheimplementationofthegreenprocurementconcept.

ProcurementIntegrityManagementInordertostrengthentheprocurementintegritymanagementcapability,SFhascontinuedtofocusonbuildingacomprehensiveandprofoundanti-corruptioncompliancemanagementsystem.SFhasformulatedtheLetterofNotificationofTransparentProcurementtofurtherdeterminetheresponsibilitiesofjointconstructionofintegrityandtherightsownedforbothparties,buildinghigh-standardbusinessethicalpractices.Also,theCompanysignedtheIntegrityAgreementwithsuppliers,prohibitinganyformofsoliciting,offeringoracceptingbribesbetweenthetwosidesintheirtransactions.

SupplierAnti-corruptionInitiative

Registration

Allsuppliersarerequiredtoproactivelydeclaretheconflictofinterestrelationship,with100%ofdeclarationsin2023.

BiddingSupplieraffiliationismonitoredtopreventtheircollusionwithotherSFsuppliers.

Contactconclusion

TheIntegrityAgreementshallbesigned.Reportingchannelsshouldbeclearlystatedintheframeworkmasteragreement,sub-agreement,andbiddingdocuments.Ifsuppliersdiscoveractssuchassolicitationofbribes,theycanreportthecomplaint.

In2023,thesigningrateoftheIntegrityAgreementhasreached100%.

TheGroupcontinuedtooptimizeitsonlineprocurementmanagementplatform.In2023,TheCompanyhasdeepenedtheconstructionofthecollusivebiddingidentificationsystemtorealizeefficientearlywarningofcomplianceandpotentialintegrityrisks.Forcollusivebiddingbehaviorsidentifiedandwarnedbythesystem,SFalsocarriesoutintegrityactionsatthefirsttimetoinvestigateandmaintainthefairnessandimpartialityofprocurementbehaviors.Inaddition,SFhasenhanceditsabilitytocontroltheriskofcorruptioninprocurementbyvariousinitiatives,suchasregulatingethicalbehaviorsofprocurementstaff,providingregularanti-corruptiontrainingtoprocurementstaffandrequiringprocurementstafftoundergoregularjobrotation.

SupplierTrainingSFregularlyorganizessuppliertraining.TheCompanyprovidestrainingsonsixmodulesincludingqualitymanagement,integritycooperation,andgreenandenvironmentalprotection,toconveythecooperationconceptsofgreenandenvironmentalprotection,andhonestyandintegritytosuppliers.

SFPackagingMaterialsSuppliers’Conference–advocatesustainabledevelopmentcooperationInSeptember2023,theGroupcarriedouttheSFPackagingMaterialsSuppliers’Conference,invitingmorethan60supplierpartnerstobepresent.SFcarriedoutin-depthcommunicationontopicssuchaschangesintheprocurementbusiness,macroenvironmentchangeofthemarketandthemanagementmechanismofpackagingmaterials.Also,SFencouragedsupplierstocommunicatewitheachother,sharetheirownexperience.Theconferencepassedontheconceptofsynergywitheachotherundertransparentcooperationandadvocatedsustainabledevelopmentcooperation,soastojointlybuildupanindustryecosystemforsustainabledevelopment.

SFPackagingMaterialsSuppliers’Conference

Procurementintegrity-relatedtraining

“TransparentCooperation,HealthyWin-Win”:

In2023,SFwillconduct“TransparentCooperation,HealthyWin-Win”integrity-themedtrainingforexternalsuppliers,coveringmorethan150suppliers."IntegrityResponsibility,RiskPrevention”:

InSeptember2023,SFcarriedoutintegritytrainingonthethemeof“IntegrityResponsibility,RiskPrevention”forallprocurementstaff,coveringmorethan300people.

Conductsonlinetrainingintheformofvideoandlivecourses.UploadstrainingmaterialsintheformoftrainingannouncementonSRMsystem(SupplierRelationshipManagementSystem),notifiessupplierstodownloadthetrainingcoursematerialsandrequiresthemtocompletethetrainingbythemselves.SupplierOnlineTrainingExchange

Keypartner

suppliersFull-volumesuppliers

ShoulderingSocialResponsibility

Asdeeplyunderstandsthatbusinessandsocietyareintertwined,SFhasalwaysbeencommittedtopublicwelfareandsocialresponsibilitywithoutforgettingwhyitstarted.In2012,SFhasestablishedSFFoundationandcarriedoutarichvarietyofpublicwelfareprojectsandvolunteeractivitiesinmedicalcare,education,environmentalprotection,etc.,soastogivebacktothesocietyineverysmallpractice.

EducationCharitySFLotusEducationAssistanceProgramsLaunchedin2012,theSFLotusEducationAssistanceProgram,throughcentralizedapplication,familyvisits,continuousfinancialsupportandaccompaniment,aimstohelpstudentsinneedtosuccessfullycompletetheireducationandgrowintowonderfulyoungpeoplewithexcellentcharacterwhocanadapttothedevelopmentofthesocietyandstandreadytogivebacktosociety.

In2023,theSFHoldingswaslistedinthe“2023Top10ChineseCorporateVolunteer

ServiceBrands”

In2023,26businessregion/organizationsofSFhaslaunched59“SFBloodDonationDay”blooddonationeventsin37citieswith2,904peopleparticipated,over777,430mlofbloodand25

treatmentsofplateletssuccessfullydonatedby2,236people.

In2023,SFFoundationspentatotalofRMB106milliononpubliccharity.21volunteerassociationsorganizedatotalof155publicserviceactivities,with8,861participantsandatotalof34,948volunteerhours.

In2023,theSFLotusEducationAssistanceProgramsponsored13,718studentsinneed,withatotalofRMB31.19

millionscholarshipsawarded.BytheendofDecember2023,theProgramsponsoredatotalof38,067studentsinneedwithRMB228.3millionscholarshipawarded.

Publicwelfareactivityinruralareas

Volunteersmadedoor-to-doorhomevisitsonebyoneandprovidedfinancialsupportto3,973newstudentsinneedIn2023,SFFoundationhasorganized40publicwelfareactivitiesinruralareas,withmorethan1,200participantsasSFemployees,universitystudentsofSFLotusProgram,andsocialvolunteers.OurvolunteersvisitedruralchildreninGuizhou,Gansu,andGuangxi,and4,094studenthouseholdswerevisitedduringtheProgram,with3,973newstudentsidentifiedaseligibleforthefinancialsupport.TheProgramsponsored13,718studentsinneed,withatotalofRMB31.19millionscholarshipsawardedthroughouttheyear.

FinancialSupportAtotalof11,762highschoolstudentsand1,956collegestudentsweresupportedthroughouttheyear,withgrantstotallingRMB25.09millionandRMB6.10millionrespectively.

PsychologyandHealthSFLotusEducationAssistanceProgramattachesgreatimportancetothephysicalandmentalhealthofstudents.Atotalof367thematicclassmeetingswereheldthroughouttheyear.16,800highschoolstudentsandcollegestudentstookthepsychologicaltest.

Dreamsharingsessions

OfflineempowermenttrainingofGiving-back-to-SocietyProgram

DreamsharingsessionstodreamofabetterfutureIn2023,theSFLotusEducationAssistanceProgramprovidedstudents40dreamsharingsessionswithvariousforms.Studentsengagingin“Giving-Back-to-Society”platformproject,SF’smanagersandvolunteerswereinvitedtosharetheirdreams,struggles,transformations,andgratitudeintheirlife.Duringthesessions,throughparticipatinginon-siteinteractions,singinginspirationalsong,dancing,andmanyotherinterestingactivities,studentswereencouragedtodreamoftheirfutureandfightfortheirdreams.In2023,theSFLotusEducationAssistanceProgramhasconveneddreamsharingsessionsin35countiesunder,involving3,807students.

DiversifiedempowermenttohelpfeedthecomprehensivegrowthofGiving-back-to-Societystudents

In2023,SFFoundationhashelpedcollegestudentsoftheSFLotusEducationProgramthroughfeedingthecommunitymutualaidplatformsuchastheGiving-back-to-SocietyNestingAssociation,encouragingparticipationinpublicwelfareactivities(suchasteachinginruralsummercamps,visitstoschools,etc.),organizingempowermentcourses(LearningandCareerplanning,Personaldevelopment,Careerpreparation,etc.),andcarryingouttheSFon-campuscultivationInternshipandpart-timejobstohelpcollegestudentsoftheSFLotusEducationProgramlearntogetherandgrowwiththeirpeersandcontinuetoenhancetheircomprehensiveabilities,soastogetreadyfortheworkplacelifeinthefuture.

EmpowermentforGrowth32empowermentcourseswereprovidedin2023,withatotalof3,908participants.Atotalof117empowermentpublicactivitiestookplace,includingtheruralsummercamp,lessoncreationcontest,almamaterexchangecommunication,volunteerconsultingaboutapplicationforCollegeandUniversityAdmission,involvingatotalof1,142studentsengagingin“GivingBacktoSociety”platformproject.

Ruralsummercamp

SFLiangshanCharityClass

TheGiving-back-to-Societyruralsummercamp,Asummerfeastfor

countrychildrenInthesummerof2023,universitystudentsengagingin“Giving-Back-to-Society”platformprojectoftheSFLotusEducationAssistanceProgramorganized15-dayruralsummercampsin10ruralelementaryschoolsin6provinces:Hunan,Shanxi,Shaanxi,Yunnan,HenanandGansu,withatotalof141volunteerstudentsparticipated.Thecampprovided“music,sports,andart”lessons,psychologicalcounseling,fungames,andmanyotheractivitiestogiveruralchildrenanexclusivesummerfeast.Inadditiontoenrichingthesummeractivitiesofruralchildren,thecampalsosupportstheirall-rounddevelopmentinarts,physicalhealth,andmentalhealthtoimprovethemselves.

WealsoapplythedigitaltechnologytoempowertheSFLotusEducationAssistanceProgramandimprovethedigitalplatformtoenhancethestudentexperiencewhileincreasingtheefficiencyofpublicwelfareactivities.

MedicalCareSFWarmthandCare–ChildrenMedicalAssistanceProgram(hereinafter“SFWarmthandCareProgram”)iscommittedtopromotingearlydetection,earlytreatment,andearlyrecoveryofchildrenpatientsagedfrom0to18whosufferfromrelevantdiseases.Itbooststhephysicalandmentalhealthofchildrenpatientsintermsofmedicalassistanceandhumanisticcare,andcontributestothedevelopmentof“intra-provincialtreatmentofseriousdiseases”andthechildren’smedicalindustry.Bytheendof2023,SFWarmthandCareProgramhadinvestedatotalofRMB432milliontoassist21,379orphansandchildrenwithseriousdiseases,andhadprovidedhumanisticcareservicesto35,803peopleincludingchildrenpatientsandtheirfamilymembers,aswellasmedicalstaff.

TheSFWarmthandCareProgramcongenitalheartdiseasesinchildrenscreeningactivitiesinChasum,Tibet

TheSFWarmthandCareProgramcongenitalheartdiseasesin

childrenscreeningactivitiesinShantou,Guangdong

Congenitalheartdiseasesscreeninginchildrentocareforthehealthof

childrenpatients

In2023,theSFWarmthandCareProgramcooperatedwiththeChildrenCardiologyDepartmentoftheUniversityofHongKongShenzhenHospitaltocarryoutscreeningandassistanceactivitiesinLongchuanofGuangdong,ChasumofTibetandLunduofGuangdong.Theprofessionalmedicalexaminationisconductedtodiagnosecongenitalheartdiseasesintime,contributingtoearlydetection,earlytreatment,andearlyrecoveryofthechildrenpatients.In2023,theSFWarmthandCareProgramcarriedoutthe

fourthdiseasesscreeningactivityinTsawangCounty,LinzhiCity,Tibet.Followingthecomprehensiveschoolscreeningintwoelementaryschoollastyear,thisyear,italsowentdeepintothemostremoteTsawanglungTownshipandGulaTownshiptocarryoutschoolscreening,withacumulativetotalof1,233childrenbeingscreened,and7newlydiagnosedwithpositivecongenitalheartdiseaseandinneedofsurgery.

2023,theSFWarmthandCareProgramcarriedout

universalscreeningcontinuouslyin11kindergartensthroughinnovative“heartultrasoundintothegardenuniversalscreening”wayinLundu,Shantou,GuangdongProvince,withtimelydiscoveryof55childrenwithpositivecongenitalheartdisease.TheProgramalsoprovidedguidancetokindergartensandparentsforabetterfollow-upreviewandfollow-upwork,guardingyoungchildren’s“heart”healthwithalltheirheart.

In2023,wenewlyhelpedanadditionalnumberof

3,424orphansandchildrenwithseriousdiseases.15self-rundesignatedhospitalsoftheSFWarmthand

CareProgramreceivedadditional2,134childrenwith

congenitalheartdisease,blooddiseasesandmalignant

tumoursin2023,up13%yearonyear.In2023,theSFWarmthandCare-ChildrenMedical

AssistanceProgramwonthe12thChina

CharityAwards.

Publicserviceactivityonhumanisticcareofthe

SFWarmthandCarePrograminZhengzhouMeanwhile,SFFoundationpaysspecialattentiontomedicalcapacitybuildinginruralareasandcontributestothedevelopmentoftownshiphospitals,soastoimprovethemedicalexperienceofruralresidents.

TheQingheTownHealthClinicinPingquanCity,HebeiProvinceSFdonationhascontinuedtopromotethedigitalupgradingoftheSFWarmthandCareProgram,upgradingthemedicalassistancemanagementsystemandcompletingtheR&Dofhumanisticcaremanagementsystem,andtherebyprovidingchildrenpatientsandtheirfamilieswithabetterall-processexperiencefromtheearlytreatmenttothelaterhumanisticcareservice.

Publicserviceactivityonhumanisticcaretoaccompanythegrowth

ofchildrenpatients

InAugust2023,theSFWarmthandCareProgramstafforganizedpublicserviceactivityonhumanisticcarewiththethemeof“AccompanyingChildren’sGrowth”inZhengzhou,HenanProvince.Duringtheactivity,thestaffmadeonlineandofflinereturnvisitsto108childrenpatientsdiagnosedwithblooddiseasesandmalignanttumors,tolearnabouttheircurrentconditionsanddreamsforthefuture.Theactivitylaidasolidfoundationforfutureactivitiesandaccompaniedthehealthygrowthofthechildrenpatients.

Concentratingonthecapacitybuildingofruralmedicalandhealthcare

systemtofacilitatethedevelopmentofQingheTownHealthClinic

In2023,SFFoundationsupportedthemedicalservicecapabilityestablishmentoftheQingheTownHealthClinicinPingquanCity,HebeiProvince.Newpre-screeningandtriageclinics,feverclinicsandenteralclinicshavebeenbuiltinthehealthclinictooptimizetheprocessofpatientcareandimprovethehealth-careenvironmentforruralresidents.

Humanisticcare

In2023,providedhumanisticcareservicessuchasgrowthaccompanyto10,765peopleincludingchildrenpatients,parents,aswellasmedicalstaff.Organized20volunteeractivitieswithatotalof1,010volunteerhours,involving1,232peopleincludingchildrenpatients

andtheirparents,aswellasmedicalstaff.1,151warmthandcareenergypacksweregivenout.

DisasterRelief

Disasterismerciless,whileSFstandwithlove.Inthefaceofallkindsofnaturaldisasters,SFhasalwaysregardedservingthesocietyandsafeguardingpeople’slivelihoodasitsownresponsibility,paidcloseattentiontothesituationinthedisasterarea,andmobilizedtheemergencyresourcesofitswholenetworktosupportthedisasterreliefinthefirsttime.Relyingonitsownresourceadvantagesandefficientdeploymentcapabilities,ithascontinuedtocontributeitsefforttohelpthepeopleinthedisasterareasandtideoverthedifficultiestogether.In2023,SFactivelyparticipatedintheearthquakereliefinBaoshan,YunnanProvince,floodpreventionandreliefintheBeijing-Tianjin-Hebeiregion,andearthquakereliefinJishishanCounty,GansuProvincebyleveragingourcapacitytotransportreliefmaterialstothedisasterareasintimeanddonatingmaterialsandfundsforthereconstructionofthedisasterareas.SFcontinuestopayattentiontothedisastersituationanddynamicallyschedulesreliefforcestoprovideassistanceandsupportforpost-disasterreconstruction.

SFAirlinesguaranteesthetransportationofearthquakereliefmaterials

SFparticipatesinthefloodreliefintheBeijing-Tianjin-Hebeiregion

SFparticipatesintheearthquakereliefinLongyangDistrict,BaoshanCity,YunnanProvince

InDecember2023,whenanearthquakehittheJishishanCounty,GansuProvince,SFputtheB757cargoaircraftintoserviceandopenedupthe“Wuxi-Lanzhou”airroutetoquicklytransport20tonnesofreliefmaterialstothedisasterarea,providinglogisticssupportforthereliefefforts.InAugust2023,whenafloodstrucktheBeijing-Tianjin-Hebeiregion,SFimmediatelydispatched20reliefvehiclesloadedwithfoodandotherurgentlyneededmaterialstothedisasterarea,anddistributedthemtothepeopleaffectedbytheflood.Inaddition,SFFoundationannouncedadonationofRMB10milliontoprioritizetheemergencyneedsofthedisasterareasandprovideassistancetothepost-disasterreconstruction.InMay2023,anearthquakeoccurredinLongyangDistrict,BaoshanCity,YunnanProvince.SFurgentlyprocuredreliefmaterialsthroughvariouschannelsanddeployedpersonnelandvehiclestoload,unloadandtransportthemtothedisasterareatoensurethesupplyofreliefmaterials.

Theme:Applicationofsmartsupplychaintechnologiestoboostthetransformationandupgradeofclients’supplychainCreatingSmartLogisticsInnovation-DrivenDevelopmentSecuringSafetyDeliveryDeliveringPremiumServices

SERVICES

Services

Intheeraofdigitalintelligence,SFhasalwaysbeencommittedtoempoweringlogisticsandsupplychainserviceswithscientificandtechnologicalinnovation,andrealizing“datasupportdecision-making”,“data-drivenbusiness”and“data-enabledcustomers”throughthetransformationofbusinessdigitalintelligence.Throughtechnologiesincludingoperationsplanning,blockchain,integratingtheleadingtechnologycapabilitiesandindustryexperience,theCompanyembeddeddigitalcapabilitiesintothecustomervaluechain,providingcustomerswithproductionandsalesfull-scenario,fullyvisible,one-stop,traceablesmartsupplychainservices.Throughtheintegrationofproductionandlogistics,andtheintegrationofmarketingandlogistics,theCompanyhelpsvariousindustriescreatearesponsive,flexibleandsmart,sustainablesupplychainsystemthatrespondsefficientlytofacilitateindustrialupgrading,costreductionandefficiencyenhancement.

EstablishsmartsupplychainintegrationproductsbenchmarkTheCompanyintegratesthewholesetoftechnologicalcapabilitiestoformintelligentsupplychainproducts–FengZhiCloudChain*(丰智云链),FengZhiCloudStrategy*(丰智云策),FengZhiCloudTower*(丰智云塔),FengZhiCloudData*(丰智云数)andFengZhiCloudMarketing*(丰智云商)–fordifferentlevelsofcustomerdemands.

Integrationofprocurementplanningandlogisticsactivities

Integrationof

schedulingplansandlogisticsactivitiesIntegrationofdelivery

planningand

logisticsactivitiesIntegrationofpricing

strategiesandlogisticsactivities

Integrationofpromotionalstrategiesandlogisticsactivities

Integrationofproductstrategiesandlogisticsactivities

CyclicPickupScheme

Inboundlogisticsline-upandloadingoptimizationatsourcingstageSmartParkSolutionPark-operationscreen,vehicleschedulingand3Dmap

ConsumerInsightsEnd-userportraitprolingandbehavioranalysis

NetworkOptimization

Solution

Warehousesiteselection,routing

optimization,transportationschedulingMulti-levelReplenishment/AllocationScheme

Solveinventoryturnoverandout-of-stockproblemsinmulti-levelwarehousesMiddle-endBusinessSolutionOmnichannelOrder

IntegrationManagementOneBucketSolutionSolveinventoryfragmentationproblemindifferentchannels

OnlineStoreSolution

CustomizedO2O,B2C,B2Bandothermulti-modeonlinestores

ForwardWarehouseSolutionShortenorder-to-delivery

timeandenhanceuserexperienceStoreSelection

ProposalsStorerecommendationbasedonhistoricaldataandforecasts

Forecasting

OmnichannelBusinessPlatform

SmartWarehousing

SmartTransportation

SmartParkSmartShopMulti-CloudManagementCross-CloudComputing

Real-timeDataWarehouse

SeparationBetweenStorageandComputation

AutoScaling

Logistics

FundowBusinessow

Information

ow

FengZhiCloudStrategy

FengZhiCloudTower

Regional

warehouses

Generalwarehouse

FactorySupplier

End-user

E-commerceDistributorsForwardwarehouseOfinestores

FengZhiCloudMarketing

FengZhiCloudChain

In-warehouseOptimizationSolution

Optimizationofin-warehousepicking-up,spotoptimization,replenishment

FengZhiCloudData

PlanningStrategyWarningCollaborationInte

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and

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I

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soluti

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SFSmartSupplyChainProductsandServices

Applicationofsmartsupplychaintechnologiestoboostthetransformationandupgradeofclients’supplychain

Integratingalgorithmstrategiesaccordingtobusinessconditions,outputscientificandreasonabledailyreplenishmentandallocationplans.Developedvisualandautomatedreplenishmentmonitoringdashboardstoallocatedailyoutputandinspectionresults,improvingthebrand’sexpressfulfillmenttimelinesswithreducedwarehousecrossrate.

Providedpromotionstrategiesandpackagingtransportationoptimizationservices,atthesametimecontrolled

theallocationexecutionrateandfolloweduponabnormalproblems,helpingthebrandreduceunsalableinventorywithimprovedpackagingutilizationrate.

AutomaticInventoryIntroductionofRFID,gravityandvisualIoT

devicesandplatformsforautomaticinventory

SupplyChainControlTowerVisualizationoforderfulfillmentandinventorymanagementMulti-sourceheterogeneousdataintegrationAutomaticstatementgeneration,businessanalysis,andBIfordecisionsupport

IntelligentReplenishmentAutomatedstorereplenishmentbasedondemandforecasts,supportedbyoperationresearchoptimizationalgorithmsandarulesengineSupplyNetworkOptimization

NetworkplanningandimplementationofforwardwarehouseOrderfulfillmentandinventorysharinginmultiplescenarios

Helpthecustomerto:

Reducestoreinventoryby

Reducewarehousedeliverycostsby

Decreasescraprateperstoreby

Increasetheforecastingaccuracyby30%15%1.4%5-20%

ProvidingSolutionsforSmartSupplyChain

TheCompanyleveragesitscomprehensivesmartsupplychainproductsandcustomerdemandonbusinesssub-segments,deeplyreacheddozensofindustriesincludingcosmetics,3Candfast-fashionconsumergoodswithin-depthempowermentonover4,000enterprises.SmartSupplyChainProjectforaCoffee&BeverageGiantTosolveproblemsinstorereplenishment,operationandsupplychainmanagement,SFandthecustomerjointlydevelopedasmartstoremanagementsystemandanintelligentreplenishmentforecastsystem,whichusealgorithmsthatmimicrealbusinessscenariostoempowerthecustomer’ssupplychain.

Full-LinkSupplyChainofLightingBrandByapplyinganalysisandalgorithmstrategy,SFprovidedsmartsupplychainservicestoalightingbrand,includingintelligentreplenishmentstrategy,andoptimizationofwarehousenetworkcoverage,orderstrategyandpackingandshipping,toimprovethebrand’sexpressfulfillmentefficiency,reducecross-binratesandslow-movinginventory,therebyenhancingsupplychainoperationalefficiency.

DigitalTwinConstruction

SimulationFidelityvericationParameteroptimization

Machinelearning

3Dreconstructionandrendering

Datacollection

Datamining

Digitaltwin

Mechanismmodel

Datamodel

PersonnelLogistics

VehiclesProcedure

Transitcenter

Overtheyears,SFhasbeenstrivingtocreatealogisticsdigitaltwinsystemwithhighfidelityandefficientalgorithmvalidation.Thesystemisusedtosimulateandcalculateactualbusinessscenariosbasedondatafromwarehousesortingandlogisticsrouteplanningscenarios,soastofindthebestsolutionsforvariousscenariosandexplorewaystoimprovetheefficiencyoflogisticsoperationsateachprocessintherealworld.Throughdigitaltwintechnology,SFcanefficientlysimulate,validateandoptimizethestrategiesintherealworldwithextremelylowsimulationcostsandtrialanderrorcostsvirtually,helpingthelogisticsindustrytoachieveefficientintelligenttransformationinwarehousedesignandoperation,logisticsnetworkdesignandotheraspects.

WarehouseSortingSFquicklyverifiesthefeasibilityandeffectivenessofthesortingplanbyadjustingsimulationparametersusingthedigitaltwinsystem.Thisenableswarehousesortingplanstobeswitchedatalmostnocostandwithhighqualityintherealworld,significantlyimprovingwarehousesortingefficiency.

Forthesamenumberofparcels,thenewdigitaltwinsortingplanreducessorting

timebymorethan10%

Withinafixedsortingperiod,thenewdigitaltwinsortingplancanimproveactualaveragecapacitybymorethan

8%

InSeptember2023,SFheldthe“SFDigitalTwinPressConference”duringthe15thInternationalExhibitiononTransportTechnology&Equipment,andreleasedtheLogisticsDigitalTwinWhitePaperinDecember2023,whichintroduceditsbreakthroughsandachievementsindigitaltwintechnologiestothepublic.

LogisticsRoutePlanningByconnectingitsownbusinesssystemwiththedigitaltwinsystem,SFsimulatesphysicalentities,suchasoutletsandvehicles,inthevirtualworld,andimitatesallkindsofparametersinvolvedinlogisticsroutestofindoutthebestplanforparcelsafterevaluatingallstrategies.Inthisway,itcaneffectivelyimprovelogisticsefficiencyandoptimizeresourceallocationintherealworld.

Onaverage,morethan500transportroutespercitypermonthcanbeavoidedviathedigitaltwin-basedoperationresearchoptimizationtechnology.

over500routes

Adoptionrateofstrategiesrecommendedbythe

digitaltwinreaches

Above95%

Digitaltwinoptimizationimproveslogisticsrouteverificationefficiencyby600

times,greatlyreducingmanpowerandresourceconsumption

600times

Whilethedigitaltwintechnologycontinuestoiterate,SFhasprimarilyachieved:

UpgradingthedigitalintelligenceofthelogisticsnetworkSFhascontinuedtoimproveitsoveralldigitalizationandintelligentlevelofthelogisticsnetwork.Throughthewhole-chaindigitalizationthroughoutitsend-to-endoperationsfromfirst-milepickuptolast-miledelivery,togetherwithvisualizedmonitoringandearlywarning,theCompanyhasachievedtheuniversalintelligentplanninganddispatching,dynamicresourcesmatchingandmapping,andflatandefficientmanagement.LeveragingtheIoTtechnologies,automationandinvestmentsinunmannedtechnologies,theCompanyhasimprovednetworkoperationefficiency,withsecuredeliveryguaranteedatthesametime,thusenablingtheCompanytoreducecostswithincreasedefficiency.Digitalintelligenceofforecast&schedulingUtilizingdata,operationandintelligence,theCompanycreatedauniversalintelligentdecision-makingsystemcovering“forecast→earlywarning→scheduling→feedback”.

recognitiontechnology,thecombinationoftechnicaldefenseandhumandefenseguaranteesthetransportationsafetyofexpressintheproductionprocessaswellasthepersonalsafetyofpersonnelinthebusinessprocess,providesasafeproductionandworkingenvironmentforparcelsandpersonnel,thussolvingproblemsofqualitymanagementandsafetyriskcontrolinsortingcenters.

Thesystemcanprovidecargoforecastinformationandsitecapacityestimationaboutevery10-minute,andprovideearlywarningofovercapacityon-site.

FieldOperationsintheEzhouaviationhubSortingmanagementAutomatedequipmentandintelligentalgorithmshelpthetransitcenterincreasecapacity.TheEzhoucargohubhasanautomatedsortingequipmentlinewithatotallengthof52kilometers,withapeaksortingvolumeof280,000piecesperhour.Theparcelfollowstheoptimalparcelwalkingpathobtainedbythealgorithm,andsmoothlyandaccuratelyfallsintotheboardingorloadingmouth.Monitorthestatusofallautomatedequipmentinthefield,warnofsub-healthequipment,maintainduringidletime,effectivelyreduceequipmentfailurerateandfailurerecoverytime.ComputerroomnetworkMultiplecomputerroomsbackupeachother,5GWIFIsignalcoversthewholearea,andthesignalisstrengthenedinkeyoperationareassuchasloadingandunloadingvehicleareas,anddismantlingandboardingareas,improvingthereliabilityofthetransitcenter,andensuringthestableoperationofbasicITinfrastructureandintelligentmobileterminals.

DigitalizedandintelligentserviceoutletmanagementThecompanyfurtherrefinedcomprehensivedigitaloperationandonlinemanagementofcollectionanddeliveryatserviceoutlets.

CollectionanddispatchingservicecapacityProvideintelligentresourceplanninganddynamicschedulingsuggestionsatserviceoutletsbycombiningfactorssuchasforecastedparcel

collectorsanddispatchers,effectivelystrengtheningtheflexibilityofthelast-milecollectionanddeliverycapacity.Atthesametime,TheCompanyupgradeditssystemcapacitytofurtherenhancethesynergisticcapabilityofvariousendchannels,suchasserviceoutlets,HIVEBoxesandpoststations,tomeetthedifferentiatedneedsofcustomersforreceivinganddeliveringparcelsandtoimprovethecustomerexperiencewhileoptimizingtheresourceutilizationoftheentirelast-milenetwork.EndtransportationapplicationTheendcollectionanddeliveryoperationhasbeencombinedwithautomatedtransportationtoenhancedeliveryefficiency.Inoffice

scenariossuchasindustrialparks,transportationthroughautomatedcollectionanddeliveryvehicleanddoor-to-doortransportationand

deliverythroughrobotsimprovedtransportationefficiencyandreducedthepressureforcouriers.Terminaltransportationapplicationshave

beenpromotedinvariousplacesincludingBeijing,Shanghai,Shenzhen,Suzhou,Wuxi,andHefei,etc.

InnovationCultivation

InnovationGeneration

InnovationImplementation

InnovationValueCreation

Innovation-DrivenDevelopmentManagementofTechnologicalInnovationInnovationisthesoulofenterpriseprogressanddevelopment.HighlyconcernedwithinnovationR&D,SFiscommittedtodrivingbusinessproductivitythroughinnovation,andencouragesemployeestocreatevalueinnewanddisruptiveways.SFhasalsoestablishedasoundinnovationmanagementmechanismtoinjectimpetusforsustainabletechnology-enabledinnovation.SFimplementsmechanism-driveninnovationtopromoteinnovationfromideatopracticalapplication.Since2016,SFhassetuptheInnovationWorkshopandcontinuedtoupgradeit.Uptonow,ithasrealizedaclosedloopcoveringinnovationcultivation,generation,implementationandvaluecreation.

In2023,SFcontinuedtooptimizeitsinnovationmechanismandcarriedoutdiversifiedinnovationactivitiestoimproveitsinnovationefficiency.Asshownbelow:

Conducted:4livecoursesbytheInnovationWorkshop12selectivemicroinnovationreviews

4InnovationPioneerAwardreviewsOutput:Over2,500innovationachievements80%ofemployeeparticipationrate

PromotingIndustry-University-ResearchCollaborationWithanopenandwin-winattitude,SFcontinuestoteamupwithresearchinstitutes,universities,andotherpartnerstopromotethetechnologicalinnovationsdevelopment,suchasdigitaltwins,blockchainandoperations,jointlycreatinganeweraofintelligentlogistics.

Creationπ-TheThirdInnovationCompetitionon

IntelligentLogisticsApplication

SFTechnologyPostdoctoralResearchStation

PartneringwithUniversitiestoFacilitateIndustrialInnovation

InnovationCompetition:In2023,SFcooperatedwithZhejiang

UniversityNationalScienceParktoholdthe“Creationπ-TheThirdInnovationCompetitiononIntelligentLogisticsApplication”.Thecompetitionattractedtopuniversitiesandresearchinstitutesfromaroundtheworldandgatheredvariousinnovativeprojects,which,combinedwithregionaldevelopmentandtherequirementsoflogisticsbusinessscenarios,promotedinnovationanddevelopmentinintelligentlogisticsandcontributedtotheconstructionoftheindustrialecosystem.

CollaborativeR&D:SFcollaborateswithXidianUniversityandZhuhaiFudanInnovationResearchInstitutetoco-developa“SupplyChainCollaborativeManagementandFinancialServicePlatformbasedonNationalCryptographyandBlockchain”.Theplatformhascompletedsystemestablishmentandthedesignoftheblockchainsolution,andwillgreatlyenhancethedatacredibilityofinternalsupplychainsystem,andtheindustrytrustpenetrationlevel.IndustrialBase:SFcollaborateswithTheChineseUniversityofHongKong,Shenzhentoestablishan“IndustrializationBasefortheDigitalTwinResultsofLogisticsTransitCenters”.Thecollaborationaimstopromotetheconstructionofdigitaltwinsandintelligentoperationandmaintenanceforlogisticstransitcenters,providinganindustry-typicaldemonstrationforenhancingdeploymentefficiencyandoptimizingoperationplans.ScientificResearchStation:In2023,SFTechnology’sPostdoctoral

ResearchStationbeganrecruitingandcultivatinghigh-caliberandcutting-edgetalentsworldwide.Besidescultivatingtalentsforlogisticindustry,thestationestablishedjointtrainingandcooperationrelationshipswithtopuniversitiesathomeandabroadtopromotetheintegrateddevelopmentofindustry,university,andresearchinfieldssuchasdigitaltwins,operationresearchoptimization,andsupplychainoptimization.

ServicesSecuringSafetyDeliverySFstrictlycomplieswithlawsandregulationssuchasthePostalLawofthePeople’sRepublicofChina,MeasuresforSupervisionandManagementofPostingandDeliverySafetyinthePostalIndustry,ManagementMeasuresforReal-NameReceivingandSendingofMailandExpressandtheRegulationsontheManagementofProhibitedItemsforPostingandDelivery.Bydoingso,SFcanimproveitssafetymanagementofdeliveryservice.In2023,theCompanyformulatedandlaunchedtheRegulationsontheManagementof“ThreeSystems”forSafetyDelivery,inwhichtheprinciplesfortheinternalmanagementandcontrolofthe“ThreeSystems”areclearlydefinedandimplemented,namelythesystemsofreal-namepickupanddelivery,theinspectionofparcelsindeliveryandthesecurityinspectionoftheexpressmail.Throughoptimizingtheinternalmanagementregulations,performingreal-nameauthenticationandstrengthenthemanagementandcontrolofillegalandprohibitedarticles,theCompamycanensurethesafetyofmaildelivery.

Processimplantation

Causeanalysisiscarriedoutonthedataofabnormalreal-namenotificationsofenterprisesmonitoredbytheStatePost

Bureau.Theproblemsaresimultaneouslyexportedtotherelevantregionintheformofdailyreportsforimprovementandrelateddepartmentsareurgedtorectifytheproblemsfound.

Assessment

andmonitoringManagementofIllegalandProhibitedArticles

SF,instrictaccordancewiththeRegulationsontheManagementofProhibitedItemsforPostingandDelivery,formulatestheStandardsforReceivingandSendingCommonArticlesandupdatesandreleasesthemmonthly.SFregularlycarriesoutspecialrectificationworkondeliverysafety.SFtakesmeasuressuchasstrengtheninginvestigationandmanagement,conductingemployeetraining,andestablishingincentivemechanismstopreventprohibiteditemsfromenteringthedeliverychannels.TheCompanyproperlydisposestheprohibitedarticlesthatenteredthedeliverychannels,maintainsthesafetyandsmoothofdeliverychannelsandcreatesasafeandstabledeliveryserviceenvironmentforthepublic.

Systemcompulsion

Real-NameAuthenticationManagement

SFstrictlyenforcesreal-nameauthenticationmanagementtoensurethesafetyandcomplianceofthedeliveryprocess.Thisisachievedviathedimensionsofprocessimplantation,systemenforcement,andassessmentandmonitoring.

In2023,thereal-nameonlineregistrationrateofSFwas

99.84%,withanincreaseof

0.31%from2022.

SFSupportedtheSafetyDeliveryinthe31stFISUWorldUniversityGamesinChengdu

InAugust2023,the31stFISUWorldUniversityGamesheldinChengdu,SichuanProvincewassuccessfullyconcluded.Duringtheevent,SFprovidedperfectservicetoguaranteethesafedeliveryofsports-relateditemsanddocuments.Duringthepreparationstageofthecompetition,SFparticipatedinseveralmeetingswithlocalgovernmentdepartmentstocoordinateanddeployreal-timeoperations.SFproactivelycoordinatedwithrelevantdepartmentsinthepre-eventstagetodevelopafull-processplan,identifiedandresolvedissueson-siteinatimelymanner,ensuringthesmoothoperationofcentralizedsecuritychecks.Duringthecompetitions,SFachievedzerooccurrencesofexpressdeliverysafetyincidentsanditsdeliveryservicewashighlyappreciatedbysociety.Asaresult,SFwasalsohonouredwiththe“SichuanProvinceOutstandingEnterpriseinExpressDeliverySecurityWorkofthe31stWorldUniversityGames”award.

InspectionandManagementofProhibitedArticles

SFhasstrengtheneditscooperationwithrelevantnationalsectorstojointlycrackdownonthetransportationofprohibitedarticlesandperformcomprehensiveandstrictsecurityinspectionsoneachparcelstoensurethesafety.Thisyear,SFtookaseriesofactionstocomprehensivelyreducethetransportationofprohibitedarticles,whichfurtherenhancedtheriskpreventionfordeliverysafety.SFinvestigatedanddisposed38,500illegalprohibitedarticlesintotal.

Securitycheckimplementation

Government-

enterprisecollaboration

Pickupand

delivery

inspection

In2023,SFlaunchedspecialrectificationactionssuchasthe“Managementofcontrolofbatteryexpressparcels”andthe“Controlonthedeliveryofinflammableandexplosivearticlessuchasfireworksandfirecrackers”toeffectivelypreventinflammableandexplosivegoods,drug-relatedgoods,dangerouschemicals,illegalpublicationsandotherillegalarticlesfromenteringthedeliverychannel.

“SichuanProvinceOutstandingEnterpriseinExpressDeliverySecurityWorkofthe31stWorldUniversityGames”awardforSF

SFAirlinesAssistedintheCompletionofA99InternationalAirTransportCertificationandtheFirstAirTransportationofLarge-PowerLithiumBatteriesOnNovember23,2023,SFAirlinessuccessfullytransportedlarge-powerlithiumbatteriesofaleadingnewenergyvehiclemanufacturerfromEzhoutoGermany.Thiswasthefirsttimethatit’slarge-powerlithiumbatteryproductswereexportedviathedomesticairline,demonstratingtheenhancementofSF’sabilitytoprovidecross-borderairtransportationservicesfordangerousgoods.SFformulatedatransportationsupportplan,preparedA99materialswithspecialapproval,strictlyadheredtotransportationoperationalrequirements,andsuccessfullycompletedthesafetytestingoflithiumbatteriesandtheirpackagingsinaccordancewithinternationalstandards.Besides,SFAirlinesandEzhouAirportevaluatedtheairport’semergencyresponseplanandSFAirlines’emergencyresponsecapabilitiesbasedonthepre-setscenariossuchas“emergencyresponsetofiresinvolvingdangerousgoodswithinthecargowarehouse”toensuretransportationsafety.

TrainingonIdentificationofProhibitedArticlesToimproveemployees’abilitytoidentifyillegalandprohibitedarticles,SFregularlycarriesoutillegalandprohibitedarticlesidentificationtrainingactivitiesforgrassrootsemployees.In2023,SFcarriedoutprofessionalabilityimprovementtrainingforsafetyinspectionpersonnel.Thistrainingwasconductedthroughvariousforms,includingsendingsafety-relatedtrainingmaterialsthroughinternalonlineplatformsandconductingofflinetraining,self-training,morningmeetingsandotherformsoftrainingfornewemployeesindifferentregions.

Additionally,byputtingupposterstocrackdownondrug,prostitutionandpornography,knivesandotherillegalandprohibitedarticles,SFremindsemployeestoremainvigilantatalltimesandjointlymaintainthesafetyofdeliveryservices.DangerousGoodsTransportation

SFstrictlyabidesbytherelevantlawsandregulationsonthetransportofdangerousgoods.Thecompanyhasestablishedacomprehensivemanagementsystemforthetransportofdangerousgoods,suchastheDangerousGoodsTransportationManualandtheEmergencyResponseGuidanceforAircraftIncidentsInvolvingDangerousGoods.Meanwhile,SFformulateddetailedsafetystandards,standardizedtheclassification,identification,packaging,collectionandtransportation,inspectionanddeliveryofdangerousgoods,strengtheningthemonitoringandmanagementofthetransportofdangerousgoods.Intermsofthequalificationofthetransportofdangerousgoods,SFAirlineshasobtainedtheCategory1~9dangerousgoodsqualificationforself-useaviationmaterialsandcommercialtransport,andithasbecomethefirstairlineinChinatoobtaintheapprovalundertheA99InternationalAirTransportCertification.

SFactivelyinvestedintheresearchanddevelopmentofdangerousgoodstransportationtechnology.InNovember2023,SFparticipatedinthedemonstrationofapplicationofthenationalkeyproject“SafetyProtectionTechnologyandEquipmentforPowerLithiumBatteryTransportation”forthefirsttimeasabenchmarklogisticsenterpriseinthelithiumbatteryindustry.SFdevelopedthekeytechnologyofpowerlithiumbatterytransportationsafetyprotectionequipment,andimprovedChina’stransportationsafetyriskwarningandaccidentpreventionandcontrolsystem.Inthiscase,SFsupportsthehigh-qualitydevelopmentofChina’snew-energyautomobileindustry.

Asoftheendofthereportingperiod,SFhasconductedmorethan500offlinetrainings.In2023,thecoveragerateofsafetydeliverytrainingforthecouriersis100%,andthequalificationrateofthetrainingsis99.9%.

SFAirlinesSupportedFirstTransportationofLarge-PowerLithiumBatteries

ServicesDeliveringPremiumServicesSFcontinuouslyimprovesservicequality,differentiatesservicecompetitivenessandcontinuouslyprovidescustomerswithhigh-efficiencyandhigh-qualityservices.SF’sserviceshavepenetratedintoindustrialmanufacturing,commercialcirculation,salesofagriculturalproducts,foodandmedicinecoldchain,internationaltrade,locallifeandotherfields,coveringallaspectsofproductionandpeople’slivelihood.Thisestablishesa“fast”“punctual”“safe”brandimage,whichhasbeenwidelyrecognizedbycustomers,industriesandsociety.EnhancingCustomerExperienceSFcontinuestoimprovetheindustryservicestandardsinvarioussegments.Itiscommittedtoprovidingcustomerswithhighqualityservice.SFdrivesthecoordinateddeliveryofalloperationalprocessesbasedoncustomerfeedback,promotestheoptimizationofinternalservicestandardprocesses,providescustomerswithspeedyandwarmservices,andcontinuouslyimprovescustomersatisfaction.Completedcustomercomplaintservicetargetin2023andtargetofcustomercomplaintservicein2024

Targetof2023Targetachievementin2023Targetin2024Customerservice

Thedissatisfactionrate

towardscustomercomplaintserviceislowerthan5%

Thedissatisfactionratecustomercomplaintservicein2023was3.7%

Thedissatisfactionratetowardscustomercomplaintserviceislowerthan5%

Thedissatisfactionratewithcustomercompliantserviceisderivedfromsatisfactionratingswithrespecttothehandlingofcustomers’complaintissues,whichequalsto,thenumberofcustomersdissatisfiedwiththehandlingoftheircomplaintissues/totalnumberofcustomercomplaints.

Createanonlinecustomerservicecenter:SFprovidescustomerswithamoreconvenientandunifieddigitaltoolforafter-salesservice,

In2023,SFcontinuedtopromotecustomersatisfactionbybuildingonlinecustomerservicecenters,improvingprofessionalcustomerserviceteams,andexpandingdiversifiedcustomerservicechannels.

CustomerSatisfactionSurvey

SFconductsquarterlysurveysoncustomersatisfactionandtheNPS(NetPromoterScore),adoptsonlinequestionnairesurveyandrandomstratifiedsampling,continuouslymonitorsNPSandcustomersatisfactionscoresofenterprisesandindividualcustomersandcollectscustomeropinions.In2023,thetotalnumberofsurveysamplesexceeded100,000,coveringhundredsofcitiesacrossChina,andtheresearchcontentincorporatedmorethan40subdivisionindicatorsinsixdimensions,namelytheexpresstimeliness,expresssecurity,pickupanddeliveryservice,salesservice,after-salesservice,andsystemservice.

In2023,SFreceived32,578complaintsaboutproductsandservices,adecreaseof

12.1%comparedwith2022,andtheconsumer

complainthandlingratereached100%.

CustomerPrivacyProtection

SFpaysattentiontotheprivacyprotectionofitsusersandimplementsacomprehensivecustomerdatasecurityprotectionstrategycoveringallaspectsoftheserviceprocess,including“ordering,pickupanddelivery,transit,after-salesservice,andoperations”.Itcomprehensivelysafeguardsthesecurityofcustomerdataandprivacy.SF’smeasurestoprotectcustomerprivacyineachbusinessBusinessProcessOrderPlacementPickupandDeliveryTransit/After-salesOperationProtectionmeasures

Customersareencouragedtocompleteonlinereal-nameauthenticationusingStatePostBureau’sAnYiDiReal-NameQRCodeandtheSFReal-NameQRCodebeforeplacinganorder.InformationisalsocollectedbymeansofavirtualQRcodeuponpickingupparcels.

Forsealeddocumentssuchasbiddingdocumentsandpersonnelfiles,itisforbiddentounsealandinspecttheenvelope.Bytakinganduploadingphotographsoftheouterpackaging,itisensuredthattheparcelissealedandintactbeforeitissent.

Datadesensitizationandintelligentoutboundcallingareimplementedtoprotectcustomerprivacy.Whencontactingcustomers,customerphonenumbersareprotectedwithmaskedphonenumbersdisplayedonthecallinterface.Alternatively,customersaredirectlycalledfromthebackend.

Encryptedstorageandtransmissionareusedtoencryptcustomerinformationstoredinthebusinesssystemsanddataplatformstorealizeciphertexttransmissionduringdatatransfer.

Furtherupgradeofclaimsserviceenablesmoreconvenientself-serviceoperationIn2023,SFhaslauncheditsonlineself-serviceclaimsproductthatisbasedonriskmodelsandintelligentcompensationalgorithmstoeffectivelysolvetheneedssuchasthelong-processingcycle,opaqueprocessingprogress.CustomerscanapplyforclaimsonlinethroughtheSFapporitsWeChatminiprogram,andthenuploadtherelevantclaimproof.Theycanreceivequickcompensationwithin5minutes,whichgreatlyenhancescustomers’experienceintheirsettlementofclaims.

Accordingtothesurveyresults,SFcustomersatisfactionandNPScontinuetobepromoted.Accordingtothepublicsatisfactionscoreofexpressdeliveryservicesin2023releasedbytheStatePostBureau,SFrankedfirstinthefirstthreequartersof2023

.AccordingtotheChinaNetPromoterScore(C-NPS)releasedbyChnbrandin2023,SFisthemostrecommendedcompanythatprovidesexpressdeliveryservices.

Asofthedisclosuredateofthisreport,theannualpublicsatisfactionscoreofexpressdeliveryservicesin2023hasnotbeenreleased.

SFIDInterface

CLIMATE-RELATEDDISCLOSURES

GovernanceSFiskeenlyawareofthesignificantimpactofclimatechangeonitsownstrategicplanningandbusinessoperations.Thus,SFhasintegratedclimatechangegovernanceasanimportantpartintoitsEnvironmental,SocialandGovernance(ESG)system.ToeffectivelyrespondtoclimaterisksandcontinuouslyimproveitsgovernancelevelinESG,SFhasestablishedasustainabledevelopmentgovernancestructuresince2019andcontinuouslyimprovesitsESGgovernancesystem.In2022,SFalsoelevatedESGprofessionalmanagementworktothecorporategovernancelevel,andaddedresponsibilitiesregardingthesupervisionofsustainabledevelopmenttotheStrategyCommitteeoftheBoardofDirectorsthatisresponsibleformonitoringandmanagingsustainabledevelopmentissues,includingthetaskofaddressingclimatechange.Inthiscase,SFintegratesclimaterisksandopportunitiesintoitsstrategicplanning.

TheBoardofDirectors,actingasthehighestdecision-makingbodyforSF’ssustainabledevelopmentandresponsetoclimatechange,isresponsibleforthestrategydevelopment,supervisionandpolicy-makingonESGandclimatechangeissuestoensuretheimplementationdepartmentstakeeffectivemeasurestoaddressESGrisksandimpactsofclimatedisasters.TheStrategyCommitteedeliversESGandclimategoalsandregularlydiscussestrends,risksandopportunitiestokeepinformationupdated.Meanwhile,SFhasincorporatedcarbonreductiontargetsintoitscorporatestrategy,trackedthemasakeyissuetofollowup,andlinkedthemwithmanagementperformancetoensureeffectiveimplementationofESGandclimategovernance.

TheBoardofDirectorsAuditcommittee

StrategyCommitteeSalaryandassessmentcommittee

Nominatingcommittee

Riskmanagementcommittee

Asaprofessionalworkingbody,theSustainableDevelopmentWorkingGroupiscomposedofrepresentativesfromtheOfficeoftheBoardofDirectors,variousfunctionaldepartmentsinvolvedinsustainabledevelopmentword,BGs(BusinessGroup),andBUs(BusinessUnit).ItisspecificallyresponsibleforcoordinatingtheimplementationofESGandclimatechange-relatedwork,ensuringtheeffectiveuploadingandissuingoftasks,andreviewingtherisksandopportunitiesrelatedtoclimatechange.SustainableDevelopment

WorkingGroup

TheSustainabilityLeadershipTeamcomposedofChiefStrategyOfficer(CSO),ChiefFinancialOfficer(CFO),ChiefOperatingOfficer(COO)andChiefHumanResourcesOfficer(CHO),reportingtotheStrategyCommitteeoftheBoardofDirectors,isresponsibleforsettingandregularlyreviewingESGandclimatechangerelatedtargetstoensurethatESGandclimaterelatedrisksarefullyconsideredandaddressedwithSF’sdecisions,investmentsandoperations.SustainabilityLeadershipGroup

InordertoeffectivelyimplementandperformESGandclimate-relatedmanagementwork,allbusinessandfunctionaldepartmentsofSFdoagoodjobofESGandclimateriskidentificationandcarbonemissionaccountinginaccordancewithestablishedmanagementindicatorsandmechanisms,implementclimatechangeriskmanagementmeasuresinbusinessactivities,andimplementenergyconservationandemissionreductionworkplanstoensurethatESGandclimategovernanceworkiscomprehensivelyimproved.BusinessandFunctionalDepartments

OverallplanningDailyreporting

Supervision&guidancePeriodicreporting

DailyreportingCoordinationinimplementation&promotion

Decision-makingSupervisionDailyManagementImplementation

StrategyToidentifyandassesstheimpactsofclimate-relatedrisksandopportunitiesinamoreeffectiveway,basedontherecommendationsoftheTCFDframeworkandextensiveindustryresearch,SFadoptsthetwoSharedSocioeconomicPathways(SSPs)oftheUnitedNationsIntergovernmentalPanelonClimateChange(IPCC)SixthAssessmentReport,i.e.,SSP1-2.6(Low-EmissionScenario)andSSP5-8.5(High-EmissionScenario),toanalyzetherisksandopportunitiesofSFunderdifferentclimatescenarios.Intermsofphysicalrisks,SFfocusesontheimpactsofacuteandchronicphysicalrisksunderhigh-emissionscenarios.Fortransitionrisks,themainconsiderationistheimpactsofchangesinvariousexternalpolicies,markets,technologiesandotherfactorsonSFunderlow-emissionscenarios.Theclimatescenariosadoptedforthecurrentyearareshownbelow:

TypeScenarioSourceApplicationNotes

High-emissionscenario

SSP5-8.5AR6ofIPCC

●Underthisscenarioassumption,GHGemissions

areprojectedtobeatahighlevelby2100duetothecontinuousexploitationoffossilfuelsastheprimaryenergytodriveglobaleconomicgrowth,whichmayexacerbatetheoccurrenceofextremeweatherevents;

●Undersuchascenario,thelackofrobust

climateresponseinterventionsleadstoasignificantincreaseinGHGemissionsandariseinphysicalrisksfacedbyenterprises.

Low-emissionscenario

SSP1-2.6AR6ofIPCC

●Underthisscenarioassumption,theeconomy

shiftsrapidlyfromfossilfuel-dependenttotherenewableenergy-drivenone,andmanycountriesbegintoimplementstrongclimatemitigationmeasurestocontrolthemagnitudeofglobalwarminginthiscenturytonotexceed2.0℃higherthanthetemperaturebeforetheIndustrialRevolution(1850).

●Undersuchascenario,enterprisesfacea

highertransitionriskaspolicyregulationbecomesmorestringentinanefforttoreachalower-carboneconomicenvironment.Inthemeantime,SFidentifiesandassessesshort-,medium-andlong-termclimaterisksandopportunities,andmapsriskmanagementtoSF’sshort-,medium-andlong-termstrategictargetsandactionplans.Duringtheyear,SFdefinedthetimeframeoftheitsclimate-relatedrisksandopportunitiesasshort-term(0to2years),medium-term(2to5years)andlong-term(5to10years),soastoassesstheimpactsandtrendsoftherisksandopportunitiesundervariousclimatescenariosindifferenttimeframes,thusformulatingamoreforward-lookingandflexibleriskmanagementstrategy.

PhysicalRiskPhysicalriskreferstotheimpactofchangesinclimaticconditionsonSF’soperationsanddevelopment,includingacutephysicalrisks(e.g.,typhoons,floods)andchronicphysicalrisks(e.g.,riseinaveragetemperature).Thisyear,SFconductedacomprehensiveriskscreeningofacuteandchronicphysicalrisks,identifyingandanalyzingthefinancialimpactofkeyphysicalrisksonSF.ThephysicalrisksidentifiedbySFareshowninthetablebelow:

RiskTypeRiskFactorTimeframeofInfluenceLevelofImpactAcuteriskTyphoonsShort-,medium-andlong-termLowtomedium

RiskAnalysis

Atthestageoftransit,SFhasalargenumberofdomesticandoverseasself-operatedandagencyoutlets,transitcenters,

logisticsindustrialparksandwarehouses.Strongwindsandheavyrainsbroughtbyfrequenttyphoonsmaycausedamagetothefacilitiesintransitcenters,suchasdamagetotheroofsofwarehousesandbreakageofthetransitequipment,etc.,whichmayresultinthemalfunctionofthetransitcenters,aswellasapossibleincreaseinmaintenanceexpensesandoperatingcost.●Duringthetransportation,SFprovidesdomesticandcross-bordermulti-modaltransportservicestocustomersusingvariousmodesoftransportationsuchasair,landandrailway.Severetyphooneventsmayhaveimpactsontheoveralllogisticstransportation,resultingingoodsbeingstrandedintransitcentersorwarehousesandtheinabilitytodelivergoodstotheirdestinationsinatimelymanner,therebyaffectinglogisticsperformanceriskandcausinglossofrevenue.

Countermeasures●Inthedesignandconstructionoftransitcenters(e.g.,industrialparks),dueconsiderationshallbegiventotheeffectsofstrongwindsandheavyrainfallsbroughtbytyphoons.Andincompliancewithlocalbuildingrequirements,thedesignofmulti-slopedpavementshallbeavoidedtopreventtheformationofinwardgulliesproducedbyheavyrainfalls.●Intermsofairtransportation,SFAirlineshassetupameteorologicalseatintheAviationOperationCommandCenterto

givewarningsandforecastsabouttheweathersituationinatimelymanner,assessthespecificintensity,scopeandperiodofinfluenceofinclementweatherinarefinedway,andbereadytoconveysuchinformationtotheoperationalguaranteeunitssuchastheunitsresponsiblefordispatchingandreleasinggoods,soastoprovidemeteorologicalsupportforthedecision-makingadjustmentsonflights.

RiskTypeRiskFactorTimeframeofInfluenceLevelofImpact

AcuteriskFloodsShort-,medium-andlong-termLowtomedium

RiskAnalysis●Intransit,especiallyinregionspronetoflooding,SF’stransitcenters,warehousesandindustrialparksmaysufferfromwarehousefloodingorwaterlogging,whichmayresultindamagetogoodsinstock.Atthesametime,thelogisticsinfrastructure,suchastransportationequipment,pipingsystemsandwarehousefacilitiesmaybedestroyed,causinglossofassetandanincreaseinrepaircost.●Floodingmayleadtoseriousdamagetoroads,bridgesandothertransportinfrastructure,resultinginobstructionofroutes

anddelaysinlogisticstransportation,therebyaffectingSF’stransportationefficiencyandcausingarevenuedecline.

Countermeasures

●

Forindustrialparkslocatedinlow-lyingterrain,drainagefacilitiesarecheckedinadvance,andfloodpreventionanddrainagemodificationsarecarriedoutinaccordancewithlocalrequirementstocopewithfloodrisks.

●OnthebasisofthenewsreleasedbytheChinaMeteorologicalAdministrationandtheMinistryofWaterResources,SF’scommandandsecuritycenterissuedemergencyplanssuchastheEmergencyResponsePlanforFloodControlandAbnormalWeatherResponsePlantothewholenetworkthroughemailsandotherformsofcommunication,soastopreventthesafetyrisksbroughtbythefloodseasonbymakingworkarrangementsinadvance,includingorganizingactivitiesforsafeguards,dailyprecautions(personnelsafety,parcelsafety,drivingsafety,sitesafetyandmaterialsreserve)andresponsesduringdifferentprocesses.

RiskTypeRiskFactor

TimeframeofInfluence

LevelofImpact

ChronicriskRiseinaveragetemperatureLong-termLowtomedium

●Asthetemperaturecontinuestorise,theworkefficiencyofoutdoorworkers(suchascouriers,sorters)issignificantlyaffected.Hightemperaturemaymakethemfatigued,sufferfromheatstrokeorphysicaldiscomfort,whichinturnreducestheirworkefficiency.Meanwhile,theexpensesincurredforhightemperaturesubsidyandenvironmentalimprovementmayincreasetheoperatingcosts.●HightemperaturesmayincreasetherefrigerantrequirementsforSF’scoldchainlogistics(suchascoldwarehouses,coldtransportvehicles),whichmayleadtotheriseinrefrigerationcosts.●Highsummertemperaturesandtemperaturedifferenceswithinthebusinessareaduetogeographicallocationmayadverselyaffectthestorageandtransportationofconsignmentsorresultinlossofrevenue.

Countermeasures●Basedonexternalweatherforecasts,weestablishedandimprovedtheweathermonitoringsystem,whichcangiveearlywarningsofhightemperature.Bydoingso,ourstaffcanrespondtotheriskofextremehightemperaturesinadvance.●Implementingsafetyandhealthmeasuresforhigh-temperaturework,includingtheprovisionofcoolingmaterialssuchasportablefans,specialrenovationprojectsforventilationandcooling,andthereasonableallocationofworkinghoursandtimeforrest,toavoidinjuriestopersonnelcausedbyextremeheat.

●Basedonthenationalurbantemperaturedataandroutingdatacollection,wedevelopedanenvironmentaltemperaturemodelanddividedthecountryintodifferenttemperaturezones.Throughtheuseofdifferenttemperaturecontrolmaterialsandcompositetemperaturecontroltechnology,temperaturecontrolpackagingsolutionsandrefrigerantconfigurationrequirementsbasedontemperaturezoneandflowdirectionareformedtodealwiththepotentialadverseeffectsbroughtbyextremetemperaturesonconsignments.TransitionRisk

Transitionriskreferstotherisksbroughttoenterprisesbyaseriesofchangesinpolicies,laws,technologies,andmarketsintheprocessofrespondingtoclimatechangeandshiftingtoasustainableeconomy.Byanalyzingthemacroenvironment,industrycharacteristicsandinternalresearch,aswellasthecharacteristicsofitsownbusinessmode,SFhasconductedin-depthanalysisoffourtypesoftransitionrisks,namelythepolicyandregulatoryrisks,technicalrisks,marketrisksandreputationrisks.Thekeytransitionrisksidentifiedduringtheyearareshowninthetablebelow:

Policyandregulatoryrisks

PressurefromtheGHGreductionpolicy

Short-term,medium-termand

long-term

MediumtohighRiskAnalysisSincetheannouncementofthe“CarbonPeakingandCarbonNeutrality”goal,Chinahassuccessivelyissuedaseriesof

relevantpoliciesforthefieldsofenergy,transportationandlogistics,suchasthePlanforModernLogisticsDevelopmentduringthe“14thFive-YearPlan”PeriodandtheOutlinefortheDevelopmentofGreenAviationManufacturingIndustry(2023-2035),topromotethegreenandlow-carbontransformationoftheeconomy.ThesepressuresfromtherelevantmacropolicyadjustmentswillinfluenceSF’scorebusinessactivitiessuchasexpresstransportationandwarehousingservices,whichmayhaveanimpactonSF’sbusinessmodel,andmayalsoleadtoanincreaseinSF’sexpensesonenvironmentalprotection,energyconservationandemissionreductionandotherrelatedactivities.

Intermsofoffshorecompliance,theEU-ETShasincludedtheairtransportsector,aimingtoreducethecarbonemissionsof

aviationthroughmarketmechanisms.WiththerapidexpansionofSFAirlinesfreighterfleetandtheincreaseddemandforintercontinentalroutes,SFAirlinesmaybeincludedwithinthescopeofcarbonemissiontradingcontrolinthefuture,whichmayleadtoanincreaseinadditionaloperatingcosts.

Countermeasures●Continuouslytrackingtheprogressoflawsandregulationsathomeandabroadandincorporatingthemintotheriskassessmentprocess,SFhassetupanationalandlocalpolicyresearchteamtodeeplyanalyzetherelevantpoliciesthathavebeenissuedandmakestrategiclayoutsinadvanceinlightofthechangesintheinternalandexternalenvironments.

●Forinternationalroutes,SFcontinuouslymonitorsthevolumeofflightsandcloselyfollowsthepolicychangesoftheEUETS.Accordingly,SFhassetuptheworkinggrouponEUroutecarbonemissionsandformulatedtheGuidelinesofEURouteCarbonEmission.Bystrengtheningcarbonbusinessmanagementcapabilitiesinanall-roundway,openinguprelevantchannels,andcultivatingprofessionaltalents,SFcancopewithrisksinadvance.●SFinvitestheprofessionalthird-partyinstitutiontocarryoutcarbonemissionverificationeveryyeartogainadeeperunderstandingofitsowncarbonemissionstatus,andimplementsrefinedmanagementofenergysavingandcarbonreductioninordertopromotescientificandstandardizedemissionreductionwork.

Timeframeof

Influence

Technicalrisk

R&Dandinvestmentinlow-carbontransitiontechnology

MediumtohighRiskAnalysis

●Underthejointpromotionofpolicyandexternalmarketenvironment,theinvestmentofR&Dinnewenergyandcarbon

reductiontechnologyinvariousapplicationscenariosoflogisticsandtransportationfieldhasgraduallyreceivedwideattention,suchastheapplicationofhydrogenfuelcellelectricvehicles,sustainableaviationfuel(SAF)andotherinnovativetechnologiesinvarioustransportationlinks.SFisincreasingitsinvestmentinelectricvehiclesinvehicletransportation,whilecontinuingtoexpanditsownfreighterfleetinairtransportation.TheR&Dandapplicationofnewenergyinnovativetechnologiesintransportationscenariosrequiresubstantialcapitalinvestment,whichmayincreaseshort-termcosts.

●SFhasactivelyparticipatedinseminarsonthedevelopmentofSAFtogainanin-depthunderstandingoftherelevant

cutting-edgetechnologiesandmarketdynamics.Basedonthis,SFexploresthefeasibilityofdeployingSAFprojectstopromotethegreenandlow-carbontransformationofairtransport.

●Consideringthematurityofnewenergyvehicletechnologyandtheconditionsofreplenishmentfacility,thepilotoperation

ofnewfuelvehiclessuchasLNG,CNG,methanolandhydrogenisplannedtobecarriedoutinsomespecificareasorroutesinthefuture.

Climate-relatedOpportunity

Ontheroadtoalow-carboneconomy,withthetransformationofenergystructure,changesinmarketdemand,andtheemergenceoftechnologicalinnovation,SFactivelytakesforward-lookingclimateadaptationmeasuresandactions,whichalsobringsnewdevelopmentopportunitiesforSFitself.Themeasuresandactionsincludethedevelopmentofnewproductsandservices,andtheoptimizationofsupplychainresilience.TypeofOpportunityOpportunityFactor

LevelofImpactProductsandservices

Developmentand/orexpansionoflow-emission

productsandservices

Mediumtohigh

OpportunityAnalysisFromthepolicyperspective,Chinahassuccessivelyissuedanumberofpoliciesinrecentyears,suchasthe14thFive-YearPlan

forCircularEconomyDevelopmentandtheInstructiononAcceleratingtheConstructionofaWasteRecyclingSystem,whichclearlypointsoutthecomprehensiveimplementationoftherecyclingmodeofproduction,andprovidesstrongguidanceandsupportforvariousindustriestovigorouslypromotethedevelopmentmodeofcirculareconomy.Fromthemarketperspective,asclimatechangebecomesmoreandmoreafocusofattention,downstreamcustomersand

consumersshifttheirpreferencetogreenerandlow-carbonservicesandseeksustainablesupplychainsolutions.Meanwhile,byactivelyrespondingtocustomerdemandforgreenandlow-carbonservices,SFcanwinthefavorofcustomeranditscompetitiveadvantage,anditcanalsopromotethegreenandlow-carbontransformationoftheupstreamanddownstreamsupplychain.

CountermeasuresInlinewiththedevelopmenttrendofcirculareconomy,SFhasdeeplycreatedacircularecosystemofexpresspackaging,

cooperatedwiththeindustrialchaintothedownstream,andactivelyparticipatedinthedevelopmentofanewmodelofgreen,low-carbonplasticrecyclingandtheformulationofgreenpackagingstandardssuchas“doubleeasy”(easytorecycle,easytoregenerate).Atthesametime,wecontinuetoimplementthe“FengjingPlan”,andactivelypracticepackagingreduction,reuse,recycling,anddegradation,promotingtheenthusiasmofcustomerstoparticipateinrecyclingaswellasthedevelopmentofcirculareconomy.SFhascooperatedwithanumberofbrandcustomers.ThroughthecarbonemissioncalculationmodelofSF’sself-developed

“FengheSustainabilityPlatform”withdigitalintelligence,ithelpscustomerstolearnaboutthevolumeofGHGemissionsduringtransportation,whichenhancesthetransparencyofcarbonemissiondataandprovidescustomerswithgreenerandlow-carbonlogisticssolutions.TypeofOpportunityOpportunityFactorPeriodofInfluenceLevelofImpact

Resourceefficiency

Usageofmoreefficienttransportmodes

OpportunityAnalysis

●Asgreenlogisticscontinuestobepopularizedandpromoted,multimodaltransporthasreceivedwidespreadattentionasone

ofthekeystrategiesforadvancinggreenlogistics.Inordertoensuretheacceleratedimplementationofpoliciessupportingmultimodaltransportation,ChinacontinuestopromotetheWorkPlanforOptimizingtheDevelopmentofMultimodalTransportandAdjustingtheTransportStructure(2021-2025).Inthisway,ithelpsestablishaunified,open,orderlycompetitivetransportservicemarketwherevariousmodesoftransportaredeeplyintegratedandcomprehensivetransportefficiencyisimproved,reducingthelogisticscostsandpromotingenergysavingandcarbonreductionintransportlinks.

Countermeasures●SFmakesfulluseofitsownresourcessuchasairtransportation,landtransportationanddeliveryhubstodevelop

multimodaltransportcombininghighway,railway,waterwayandairtransportation.Intermsofbulktransportbusiness,SFhasparticipatedinthenationalmultimodaltransportdemonstrationproject,continuouslyoptimizedthetransportorganizationmodel,andprovidedrailtransportservicesfrompick-upanddeliverytosettlement,furtherenhancingitscompetitiveedgeofbusinessintheindustry.Atthesametime,SFisactivelyexploringanewlogisticsmodelofair-railcombinedtransport,whichhascarriedoutdemonstrationprojectsinWuxiandShenzhen.Workingwithpartnerstopromotetheintegrateddevelopmentofrailtransportationandmodernlogisticsindustry,wemakefulluseofcapacityresourcesofurbanrailtransportation,reducetrafficcongestion,andfosterthegreenandlow-carbondevelopmentoflogistics.

Riskenvironmentanalysis

SFcontinuestopayattentiontoandanalysechangesintheinternalandexternalenvironmentbroughtaboutbyclimate-relatedrisks,includingpressuresexertedbyexternalpolicies,markettrends,SF’srisktolerance,andbusinessoperationmodels.Ifenvironmentalchangeshaveasignificantimpactonriskmanagementstrategiesormeasures,SF’sriskmanagementandcontroldepartmentwillmaketimelyadjustmentstotheriskcontrolstrategyplanning.

Goalsettingandriskidentificationofrisk

control

BasedonSF’sgoalsofriskcontrol,itconductsin-depthresearchandanalysisontheinternalandexternalconditionsandkeymattersaffectingtherealizationoftheobjectives,coveringmultipleaspectssuchasinternalmanagement,externaleconomicenvironment,naturalenvironmentandlaws,regulationsandpolicies.Inthiscase,wecanidentifyandsortoutthelistofrisksrelatedtoclimatechange.

Riskassessment

SFadoptsacombinationofquantitativeandqualitativemethodstoconductclimateriskanalysisandassessment.BasedontheprobabilityofriskoccurrenceandthedegreeofimpactonSF’sobjectives,theidentifiedrisksareprioritizedandtherisksthatareconfirmedtobegiventheextensivefocusandtheprioritytocontrol.Asaresult,theriskscanprovideinformationforthereferenceofformulationandadjustmentofSF’sdevelopmentstrategy.

Riskresponses

Takingintoaccountthecausesandtoleranceofrisks,SFweighsrisksandbenefits,brandreputation,socialresponsibilityandotherfactors,andbasedontheresultsofriskanalysis,theBoardofDirectorswillreviewanddetermineappropriateandeffectiveriskresponseplanstoensureSF’sstabledevelopment.

Supervisionand

improvement

SFcontinuestofollowup,monitorandmanagethehandlingofclimate-relatedrisks.Indailywork,SFimprovesitsabilitytocopewithclimaterisksbycontinuouslyoptimizingitsriskcontrolmechanismandmanagementcapabilities.

MetricsandTargetsAsthelargestintegratedlogisticsserviceproviderinChinaandAsiaandthefourthlargestintheworld,SFalwaysadheretotheconceptofsustainableandhealthydevelopment.Weunderstandtheimportanceofparticipatinginglobalclimateaction,andweactivelyrespondtotheglobalcarbonreductioninitiativeinanattempttopracticethenationaldualcarbonstrategy,andachievethelong-termgoaloftheParisAgreementtolimittheriseinglobaltemperaturesto1.5°Cthatislowerthanthatofthepre-industriallevel.Basedoncarbonreductionachievementsinthepast,SFreleasedtheindustry’sfirstCarbonTargetWhitePaper,committingtoimprovecarbonefficiencyby55%,andreducethecarbonfootprintofeachparcelby70%in2030comparedto2021.On23November2023,SFhasformallysignedandsubmittedtotheScienceBasedTargetsinitiative(SBTi)theBusinessAmbitionfor1.5°CCommitmentLettertodemonstrateourcommitmenttoachievingthescientifictargetofGHGemissionsreductionandstrivingtoachieveanet-zeroemissionofthevaluechainby2050.

IndicatorsProgressonClimateAction

FuturePlansforShort-andMedium-Term/GoalSetting

Scope1andscope2

Cleanenergy

●Bytheendof2023,SFhas26photovoltaicprojectsinoperationandconstructioninitsindustrialparks,withatotalinstalledcapacityof116megawatts.

●14photovoltaicprojectsthathave

beenputintooperationhavegeneratedatotalof18.39millionkWhofphotovoltaicpowergeneration.

SFplanstocontinuetoinvestintheconstructionofphotovoltaicprojectsinitsindustrialparkin2024.Bytheendof2025,allphotovoltaicprojectsareexpectedtobecompletedandputintooperation.Bythen,itisexpectedthatthetotalinstalledcapacityofphotovoltaicequipmentintheindustrialparkwillreach140megawattsandtheannualpowergenerationwillexceed100millionkWh,realizingastablesupplyofgreenelectricity.

Scope3

Greentransportation

●In2023,SFactivelyadjustedthe

structureoftransportvehicles,continuedtooptimizetheselectionandreplacementoftraditionalfuelvehicles,andfurtherexpandedtheproportionofthefleetofenergyvehicles.Bytheendof2023,SFhascumulativelydeployedover31,000newenergyvehicles,servingatotalof243cities.

In2024,basedonthematurityofnewenergyvehiclebatterytechnologyandreplenishmentconditions,SFplanstoselectseveralareasorroutesforthepilotandapplicationofLNG,CNG,methanol,hydrogenandotherfuelvehicles.By2030,theCompanywillstrivetoachieve100%electrificationofvehicleequipmentintheaviationbase.

Greenpackaging

●In2023,wehavereducedcarbon

emissionsbyabout540,000tonsthroughgreenpackaginginitiativessuchaspackagingreduction,recyclabilityanddegradability,whichreducedtheuseofpackagingbasepaperby43,000tons,andreducedtheuseofplasticbyabout162,000tons.

In2024,SFwillcontinuetocarryoutthesophisticatedR&Dofthereductiontechnologyforvarioustypesofpackagingmaterials,andcompletetheformulationofmandatorynationalstandardsintheRequirementsforRestrictExcessivePackaging.Meanwhile,SFwillcompletetheswitchinthescaleofusingdoubleeasyrecycledplasticbagsin7majorcities,whileapplyingrecyclingtechnologytootherpackagingmaterialstoimprovetheamountofrecycledplastics.By2030,wewillstrivetoreach100%oftheswitchingofstandardplasticbagstorecycledplasticbags.

55%70%

Carbonefciencywillbeimprovedby55%in2030comparedto2021

Carbonfootprintofeachparcelwillbereducedby70%in2030comparedto2021

Appendix

AbouttheReportThisisthefifthannualsustainabilityreportissuedbyS.F.HoldingCo.,Ltd..Adheringtotheprinciplesofbalance,comparability,accuracy,timeliness,clarityandreliability,thisreportdisclosesthemanagementmeasuresandeffectivenessofS.F.HoldingCo.,Ltd.intermsofsustainabledevelopment.ReportTitle

Environmental,SocialandGovernanceReportingGuideinAppendixC2totheRulesGoverningtheListingofSecuritiesontheStockExchangeofHongKongLimitedShenzhenStockExchangeSocialResponsibilityInstructionstoListedCompanies《深圳证券交易所上市公司社会责任指引》GuidelinesforSustainabilityReportingStandards(GRIStandards)oftheGlobalSustainabilityStandardsBoard(GSSB)TaskForceonClimate-RelatedFinancialDisclosure(TCFD)SustainabilityAccountingStandardsBoard(SASB)ofSustainabilityAccountingStandardsBoardCommitteeUnitedNationsSustainableDevelopmentGoals(SDGs)Keyindicatorsofcorporateenvironmental,social,andgovernanceperformancebycapitalmarketratingagencies.

ReportingprinciplesThisReportrespondstoandfollowsthereportingprinciplesoftheEnvironmental,SocialandGovernanceReportingGuide,includingmateriality,quantitative,consistencyandbalance.ThefollowingtabledescribestheCompany’sapplicationofthereportingprinciples:

PrinciplesResponsesoftheCompany

Materiality

In2023,SFanalyzedandevaluatedimportantissuesrelatedtothecompany’soperationthroughthesubstantiveissuessurveyquestionnaireandsubmitthemtotheseniormanagementofSFExpressforreviewandapproval.Weusedtheresultsoftherankingofissuesofimportancein2023asthebasisforthisreport.Quantitative

ThereportdisclosesSF’skeyquantitativeperformanceindicatorsandsetsquantitativeperformancetargetswhereapplicable.Thecalculationcriteria,methods,assumptionsand/orcalculationtoolsforallquantitativeindicatorshavebeendescribedintheirrespectivelocations.Consistency

Unlessotherwiseindicated,theinformationselection,preparationandpresentationofthisreportremainconsistentwithpreviousyears.Iftherearematerialchangesthatcouldaffectcomparisonswithpreviousyears’reports,wehaveindicatedthemintheappropriatelocation.Balance

Thisreportisbasedonobjectiveinformationandfacts,andfairlydisclosespositiveandnegativeinformationaboutthecompanytopreventdescriptionsorreportingformatsthatmayaffectreaders’decisionsorjudgments.Meanwhile,theReportrespondstoandfollowsthereportingprinciplesoftheGRIstandard.ThefollowingtableistheCompany’sexplanationoftheapplicationofthereportingprinciples:

Accuracy

TheReporthasbeencarefullyreviewedtoreportaccurateanddetailedinformationtoensuretheaccuracyofthediscloseddata.Clarity

TheReportiswritteninawaythatiseasyforreaderstounderstand,presentinginformationinanaccessiblemanner.CompletenessTheReportfullydisclosesallthematerialityissuesidentifiedbytheCompanyin2023.SustainabilityContextTheReportdisclosesinformationabouttheCompanyinthecontextofbroadsustainability.Timeliness

TheCompanydisclosestheESGReporteveryyearandreleasesitatthesametimeastheannualReporttoprovidereaderswithtimelyreferencefordecision-making.VerifiabilityThedatacollected,recorded,compiledandanalyzedintheReportmaybereviewedtoensurequality.

InformationExplanation

In2023,SFconductedESGmanagementforKerryLogisticsNetworkLimited.DuringtheReportingPeriod,SFcompletedtheintegrationofenvironmentalindicatordataofKerryLogisticsNetworkLimited(seeAppendix“KeyPerformance–Environment”fordetails).InMarch2024,SFsuccessfullypassedtheauditbySGS-CSTCStandardsTechnicalServicesCO.,LTD.,aninternationalindependentthird-partyauditorganization.TheCompanycompletedthethird-partyverificationofgreenhousegasemissionsof2023andobtainedthecertificateofgreenhousegasaccounting.

Assurancestatement

PolicyListChapterChaptername

Compliancewiththemainlawsand

regulations

MaininternalsystemofSF

StandardizingCorporateGovernance

“CodeofCorporateGovernanceforListedCompanies”“RulesGoverningtheListingofStocksontheShenzhenStockExchange”“CompanyLawofthePeople’sRepublicofChina”“CriminalLawofthePeople’sRepublicofChina”“SecuritiesLawofthePeople’sRepublicofChina”

“RulesofProcedureforRiskManagementCommitteeoftheBoardofDirectors”“RulesofProcedureforAuditCommitteeoftheBoardofDirectors”“RulesofProcedureforNominationCommitteeoftheBoardofDirectors”“RulesofProcedureforRemunerationandAppraisalCommitteeoftheBoardofDirectors”“RulesofProcedureforBoardofDirectors”“RulesofProcedureforStrategycommitteeoftheBoardofDirectors”“WorkSystemforIndependentDirectors”“RulesofProcedureforGeneralMeeting”“RulesofProcedureforSupervisoryCommittee”“ArticlesofAssociationofSFHoldingsCo.,Ltd.”“InvestorRelationsManagementSystem”“InformationDisclosureManagementSystem”StrengtheningRiskControlManagement

“LawofPRConCounteringUnfairCompetition”“Anti-monopolyLawofthePeople’sRepublicofChina”“BasicStandardsforEnterpriseInternalControl”

“ManagementSystemofCompanyRiskControl”“OperationRulesoftheRiskCommittee”“RiskControlComplianceManagementSystemoftheGroup”“RiskEventManagementSystemoftheGroup”“CrisisManagementSystemoftheGroup”

AbidingbyBusinessEthics

“Anti-Money-LaunderingLaw”“TrademarkLawofthePeople’sRepublicofChina”“AuditLawofthePeople’sRepublicofChina”“PatentLawofthePeople’sRepublicofChina”“InterimProvisionsonBanningCommercialBribery”“AccountingStandardsforBusinessEnterprises–ApplicationGuide”“ProvisionsoftheAuditCommissiononinternalauditwork”

“PersonalInformationProtectionLawofthePeople’sRepublicofChina”“DataSecurityLawofthePeople’sRepublicofChina”“CyberSecurityLawofthePeople’sRepublicofChina”

“InformationSecurityIncidentManagementProvisions”“PrivacyDataSecurityComplianceManagementStandards”“EmployeeInformationSecurityManual”

ChapterChaptername

CreatingGreenLogistics

“MethodandCriteriaforGreenPackagingAssessment”“LimitationofExcessivePackagingforExpressDelivery”

“SFAviationEnergyManagementSystem(Provisional)”“AdministrativeMeasuresforUpdatingandDisposingofOperationalVehicles”“RegulationsontheAdministrationofOperationalVehiclesPutintoUse”“Lump-sumOilConsumptionPlanforCommercialVehicles”“RegulationsontheAdministrationofWaterandElectricityintheParks”“ManagementGuideforMaintenanceofIndustrialParkFacilitiesandEquipment”“IndustrialParkPropertyServiceStandards”“SFPackagingCodeofPractice”PromotingCircularEconomy

“CircularEconomyPromotionLawofthePeople’sRepublicofChina”

Norelevantinternalmanagementsystem

ProtectingtheEnvironment

“ForestryLawofthePeople’sRepublicofChina”“RegulationsfortheImplementationofForestryLawofthePeople’sRepublicofChina”“RegulationsofthePeople’sRepublicofChinaonWildPlantsProtection”

“MeasuresforOfficeSpaceManagement”“EnergyMeteringManagementSystem”“DangerousGoodsManagementProcedure”“MeasuresfortheAdministrationofWaterandElectricityofPropertySites”

EmpoweringtheTalentTeam

“LaborLawofthePeople’sRepublicofChina”“LaborContractLawofthePeople’sRepublicofChina”“RegulationsfortheImplementationoftheIndividualIncomeTaxLawofthePeople’sRepublicofChina”“LawofthePeople’sRepublicofChinaonTradeUnions”“EmploymentPromotionLawofthePeople’sRepublicofChina”“LawofthePeople’sRepublicofChinaontheProtectionofWomen’sRightsandInterests”“SocialInsuranceLawofthePeople’sRepublicofChina”“RegulationonWork-RelatedInjuryInsurance”“ProvisionsontheProhibitionofUsingChildLabor”“SpecialRulesontheLaborProtectionofFemaleEmployees”“RegulationsonPaidLeaveforEmployees”

“Contractorregulations”“WorkGuidelineonHandlingofEmployees’DemandsthroughLaborUnion”“LaborUnionHotlineServiceQualityImprovementMechanism”“ReasonableSuggestionManagementMechanism”“RewardsandPenaltyManagementRegulations”“AdministrativeMeasuresforRelativesandBiddingAvoidance”“TalentManagementSystem”“TalentPromotionManagementSystem”“SfsendyoutoUniversityProjectManagementMethods”“Complete-ProcessManagementMechanismforDemands”“PlanforWhole-ProcessQualityImprovementofDemand”“Retirementandreemploymentmanagementmethods”“Managementmeasuresforthetransferoffirst-andsecond-lineemployees”“First-andsecond-lineemployeesdiversifieddevelopmentofkeypositionswithintheemploymentissuedstandardrequirements”Employee“WelfareManagementSystem”“OperationInstructionManualforEmployeeCare”“WorkGuidelinesforConversingEmployeeVoiceintoProductivity”“EmployeeHandbook”“Informationdisclosureguidelinesforemployees”“RecruitmentManagementSystem”

“WorkSafetyLawofthePeople’sRepublicofChina”“SpecialEquipmentSafetyLawofthePeople’sRepublicofChina”“FireProtectionLawofthePeople’sRepublicofChina”“theLawofPeople’sRepublicofChinaonPreventionandControlofOccupationalDiseases”“RequirementandGuidelinesforOccupationalHealthandSafetyManagementSystems”“Regulationsonemergencyresponsetoproductionsafetyaccidents”“Regulationsontheadministrationofsafeproductionofconstructionprojects”

BuildingResponsibleChainTogether

“E-CommerceLawofthePeople’sRepublicofChina”“ContractLawofthePeople’sRepublicofChina”“TheBiddingLawofthePeople’sRepublicofChina”“RegulationontheImplementationoftheBiddingLawofthePeople’sRepublicofChina”

“ManagementRegulationsonProcurementRisk”“RegulationsontheManagementofPurchasingStaff”“RegulationsonGreenProcurementManagementofProcurementSupplyChainCenter”“ManagementRegulationsonProcurementSuppliers”“SupplierPenaltyManagementMeasures”“LetterofNotificationofTransparentProcurement”ShoulderingSocialResponsibility

“CharityLawofthePeople’sRepublicofChina”

“ArticlesofAssociationofSFCharityFoundation”“ManagementSystemofSFCharityFoundationVolunteerAssociation”

Service

CreatingSmartLogistics

NorelevantlawsandregulationsNorelevantinternalmanagementsystemInnovation-DrivenDevelopment

NorelevantlawsandregulationsNorelevantinternalmanagementsystem

SecuringSafetyDelivery

“PostalLawofthePeople’sRepublicofChina”

“MeasuresfortheAdministrationofthe

Real-NameReceiptandDeliveryofMailsand

ExpressMails”

“SupervisionandAdministrationofSecurityof

thePostalIndustry”

“MeasuresfortheSupervisionand

AdministrationoftheDeliverySafetyofthe

PostalIndustry”

“ProvisionsonArticlesProhibitedfrom

Delivery”

“OperationSpecificationinSafetyProduction

ofExpressService”

“CommonStandardsforReceivingConsignments”“RegulationsonOperationandManagementofBattery-ContainedParcels”“GuidelinesforEmergencyHandlingofDangerousGoodsonBoard”“ProvisionsontheManagementof“ThreeSystems”forDeliverySafety”“ProvisionsontheAdministrationofProhibitedConsignments”“OperationProceduresforReal-NamePickupandDelivery”“PickupandDeliveryInspectionSystem”“DangerousGoodsTransportationManual”“SpecialPlanfortheControlofIllegalandProhibitedArticles”“RegulationsontheManagementof“ThreeSystems”forMailsandShipments”“RewardManagementMeasuresforSelf-InspectionofIllegalandProhibitedArticles”“RewardMechanismforSelf-InspectionofIllegalandProhibitedArticles”

DeliveringPremiumServices

Norelevantlawsandregulations

“ReasonableSuggestionManagementMechanism”“RewardandPunishmentRulesforCustomerService”“DifferentiatedCustomerServices”“CustomerVoiceClassificationStandard”“CustomerExperienceCustomerServiceOperationProcess”“MeasuresontheAcceptanceofCustomerComplaints”“AdministrativeMeasuresforClaimsSettlement”“AbnormalityHandlingMechanismforTime-EffectiveCategory”“ComplaintHandlingProcedure”“ComplaintHandlingUpgradeMechanism”“GuidelinesfortheControlofInternetPublicOpinionsandComplaints”“AbnormalEventCustomerServiceProcess”“EmergencyResponseCapacitySystem”

KeyPerformanceTableofEnvironmentalKeyPerformance

Indicator–EnvironmentUnit

20222023SFKLNTotalSFKLNTotalGHGemissions

GHGemissions

TotalGHGemissionstCO

e9,185,355.12,472,955.011,658,310.18,748,710.72,451,355.011,200,065.7Scope1tCO

e3,143,752.0322,253.03,466,005.02,652,365.1221,739.02,874,104.1Scope2tCO

e1,804,248.580,543.01,884,791.51,465,521.879,916.01,545,437.8Scope3

tCO

e4,237,354.62,070,159.06,307,513.64,630,823.82,149,700.06,780,523.8Category1:Purchasedgoodsandservices

e2,522,391.5N/A2,522,391.5775,202.1N/A775,202.1Category3:Fuelandenergy-relatedactivities

e1,689,195.7N/A1,689,195.71,754,182.2N/A1,754,182.2Category4:Upstreamtransportationanddistribution

eN/A2,070,159.02,070,159.02,073,065.92,149,700.04,222,765.9Category5:Wastegeneratedinoperations

e1,492.1N/A1,492.13,303.1N/A3,303.1Category7:Employeecommuting

e24,275.3N/A24,275.325,070.6N/A25,070.6

TheCompanycontinuestoimprovethestatisticsoftheemissiondataofthecategoriesofGHGemissionsScope3.In2023,theemissionsofScope3Categories2,6,12and15arenotapplicabletothemainbusinessoperationscenariosofSF,andthereforearenotpresentedinthetableofenvironmentalkeyperformance.

20222023SFKLNTotalSFKLNTotalGHGemissionintensity

e/millionrevenue(RMB)

47.633.143.541.153.543.3GHGemissionsperparcel

gCO

e/parcel

824.5N/A824.5730.9N/A730.9GHGremovalfromnewlyplantedtreestCO

eN/A6.06.04.69.013.6EmissionNitrogenoxideemissionston25,555.52,416.027,971.527,246.41,907.029,153.4Sulfuroxideemissionton20.66.026.618.23.021.2Particleemissionston2,087.3156.02,243.32,021.2118.02,139.2Energyconsumption

Non-renewableenergyconsumption

TotalgasolineconsumptionMWh18,546,599.71,673,098.020,219,697.717,506,785.11,005,665.018,512,450.1GasolineconsumptionMWh1,100,111.115,339.01,115,450.11,394,864.513,424.01,408,288.5DieselconsumptionMWh12,590,526.51,035,410.013,625,936.510,681,630.0780,440.011,462,070.0Aviationkeroseneconsumption

MWh4,855,962.1N/A4,855,962.15,430,290.5N/A5,430,290.5NaturalgasconsumptionMWhN/A1,410.01,410.0N/A909.0909.0Consumptionofliquefiedpetroleumgas

MWhN/A2,808.02,808.0N/A2,112.02,112.0CompressednaturalgasMWhN/A614,100.0614,100.0N/A204,405.0204,405.0GasandoilconsumptionMWhN/A4,031.04,031.0N/A4,375.04,375.0Renewableenergy

TotalenergyconsumptionMWh7,271.2901.08,172.215,712.01,402.017,114.0SolarenergyMWh7,271.2768.08,039.215,712.01,378.017,090.0Hydropower

MWhN/A133.0133.0N/A24.024.0Indirectenergyconsumption

ElectricityconsumptionMWh1,840,522.7164,389.02,004,911.72,100,998.5167,799.02,268,797.5

TheGHGemissionsperparcelarecalculatedfromthetotalGHGemissionsandthetotalparcelvolumeduringthereportingperiod,whichdoesnotincludetheparcelvolumeofKerryLogisticsNetworkLimitedexpressdeliverybusinessinoverseascountries.Inaddition,thisindicatorisnotapplicabletoKerryLogisticsduetodifferencesinbusinessforms.

DuetothedifferencesinthebusinessformsofSFandKerryLogisticsNetworkLimited,someoftheindicatorsinNon-renewableEnergyConsumptionarenotapplicable

andarethereforepresentedasN/Ainthisenvironmentalkeyperformancetable.

ThisindicatorisnotapplicabletoSFduetodifferencesinbusinessforms.

20222023SFKLNTotalSFKLNTotal

TotalsoldenergyMWh74.8657.0731.857.2479.0536.2TotalenergyconsumptionMWh20,394,318.81,837,731.022,232,049.819,623,438.41,174,387.020,797,825.4Energyconsumptionintensity

MWh/millionrevenue(RMB)

105.824.683.192.325.680.5UseofwaterresourcesWaterwithdrawal

ton1,423,452.01,169,181.02,592,633.01,601,051.41,042,625.02,643,676.4WasteNon-hazardouswasteproductionkg46,096,330.928,442,000.074,538,330.9155,214,609.720,113,000.0175,327,609.7HazardouswasteproductionkgN/A142,000.0142,000.0N/A

54,000.054,000.0

Packagingmaterials

Useofpackagingitems

Totaluseofpackagingitemskg445,093,236.0

9,203,000.0454,296,236.0

477,113,830.45,672,000.0482,785,830.4Expressenvelopekg75,219,380.073,959,992.9N/A73,959,992.9Waybillkg17,620,130.414,257,402.5N/A14,257,402.5Cartonkg241,291,360.0266,797,554.74,539,000.0271,336,554.7Plasticbagskg41,596,926.651,729,610.91,100,000.052,829,610.9Scotchtapeskg28,412,018.026,013,021.8N/A26,013,021.8Foamingtypeoffillerskg12,814,718.212,884,490.833,000.012,917,490.8Inflatabletypeoffillerskg28,138,702.831,471,756.8N/A31,471,756.8TableofSocialKeyPerformance

Indicator-SocietyUnit2022

Employment

NumberofworkforcesTotalworkforcePerson743,377746,577Bygender

MalePerson623,980627,408FemalePerson119,397119,169

TheCompany’swatersourcesareallmunicipalwater,andthestatisticaldataisbasedonthetotalamountofwaterwithdrawn.Therefore,adjustmentshavebeenmadetotheindicatorsdisclosedinpreviousyears’report.

SF’sownoperationsdonotinvolvethegenerationoflargequantitiesofhazardouswaste,andhazardouswasteintheofficehasnotyetbeenaccountedfor.

DuetothedifferencesinthebusinessformsofSFandKerryLogisticsNetworkLimited,someoftheindicatorsintheusageofpackagingitemsarenotapplicableandarethereforepresentedasN/Ainthisenvironmentalkeyperformancetable.

AsthestatisticalscopeofSF’ssocialperformancedatain2023isthesameasthescopeofdisclosureintheAnnualReport,theCompanyhasretrospectivelyadjustedthe

socialperformancedatadisclosedin2022toincludeKerryLogisticsinthescopeofSF’sstatisticsanddisclosuretoprovidecontinuityandcomparabilitybetweenthe2022and2023data.

2023Byage

Agedbelow30Person244,875226,221Aged30-50Person485,308508,251Agedover50Person13,19412,105

Byeducationalbackground

DoctoratePerson6557MasterdegreePerson4,1434,068Bachelor’sdegreePerson55,36457,302Associate’degreePerson131,760137,996HighschoolandbelowPerson552,045547,154Byjobfunctions

ManagementpersonnelPerson25,37426,025ProfessionalpersonnelPerson47,80443,725OperationspersonnelPerson670,167676,827Byemploymenttype

Full-timePerson630,072647,728Part-timePerson113,30598,849NumberofnewlyrecruitedworkforcesPerson323,493305,817WorkforceturnoverTotalnumberofworkforcesdepartedPersons142,540122,037Workforceturnoverrate

%19.216.3Bygender

Male%18.615.9Female%22.218.7Byage

Agedbelow30%30.926.4Aged30-50%13.612.1Agedover50%7.27.4

Workforcesturnoverrate=Totaldepartures÷Totalworkforces

Turnoverrateofworkforcesbycategory=Numberofdeparturesbycategory÷Numberofworkforcesbycategory

2023DiversifiedemploymentNumberofnewlyrecruitedfemaleworkforcesPerson61,60653,894HealthandSafetyMajorexpressfireaccidentsAccident00MajorsitefirstandsecondlevelfireaccidentsAccident00Signingrateofcontractorsafetymanagementagreement%100100Safetytrainingcoverage%100100Losttimeinjuryrate

Permillionhoursworked

1.762.35

NumberofaviationaccidentsPiece00TraininganddevelopmentNumberoftrainedworkforcesTotalnumberoftrainedworkforcesPerson728,201724,277Percentageoftrainedworkforces%98.097.0Bygender

Male%84.284.5Female%15.815.5

Totaltraininghours

AveragetraininghourspertrainedworkforcesHour6.07.8Bygender

MaleHour5.97.8FemaleHour6.17.9

Lost-timeinjuryrate=Numberoflostman-hoursaccidents÷Numberofactuallyhoursworked×1,000,000

Percentageoftrainedworkforcesbycategory=Numberoftrainedworkforcesbycategory÷Totalnumberoftrainedworkforces

Averagetraininghourspertrainedworkforcesbycategory=Totaltraininghoursbycategory÷Numberoftrainedworkforcesbycategory

2023SupplychainmanagementTotalnumberofsuppliersCompany12,41410,932Byregion

MainlandChinaCompany11,72810,271HongKong,MacaoandTaiwan

IndicatorIndexGRIStandardContentIndexInstructions

SFreferredtotheGRIstandardsforpreparationoftheReportcoveringtheperiodfromJanuary1,2023,toDecember31,2023.UseofGRI1GRI1:Foundation2021GRIStandardIndicatorNo.

GRIStandardIndicatorLocation/NoteGRI2:GeneralDisclosure2021

2-1OrganizationaldetailsAboutSF2-2Entitiesincludedintheorganization’ssustainabilityreportingReportingScope2-3Reportingperiod,frequencyandcontactpointTimeRange2-4RestatementsofinformationInformationExplanation2-5ExternalassuranceExternalAuditStatement2-6Activities,valuechainandotherbusinessrelationshipsAboutSF2-7EmployeesTableofSocialKeyPerformanceIndex2-8WorkerswhoarenotemployeesTableofSocialKeyPerformanceIndex2-9GovernancestructureandcompositionStandardizingCorporateGovernance2-10NominationandselectionofthehighestgovernancebodyStandardizingCorporateGovernance2-11ChairofthehighestgovernancebodyStandardizingCorporateGovernance2-12

Roleofthehighestgovernancebodyinoverseeingthemanagementofimpacts

StandardizingCorporateGovernance2-13DelegationofresponsibilityformanagingimpactsStandardizingCorporateGovernance2-14RoleofthehighestgovernancebodyinsustainabilityreportingESGGovernanceSystem2-15ConflictsofinterestAnti-Corruptionmanagement2-16CommunicationofcriticalconcernsCommunicationwithStakeholders2-17Collectiveknowledgeofthehighestgovernancebody

ESGManagementPoliciesand

Strategies2-18EvaluationoftheperformanceofthehighestgovernancebodyESGGoalSettingandProgressReview2-19RemunerationpoliciesESGGoalSettingandProgressReview2-20ProcesstodetermineremunerationESGGoalSettingandProgressReview

GRIStandardIndicatorNo.

GRIStandardIndicatorLocation/Note

2-21Annualtotalcompensationratio

Duetotheconfidentialityofinformation,itisnotpubliclydisclosed2-22Statementonsustainabledevelopmentstrategy

ESGManagementPoliciesandStrategies2-23Policycommitments

ProtectionofEmployees’RightsandInterests2-24Embeddingpolicycommitments

ProtectionofEmployees’RightsandInterests2-25Processestoremediatenegativeimpacts

ProtectionofEmployees’RightsandInterests2-26Mechanismsforseekingadviceandraisingconcerns

ProtectionofEmployees’RightsandInterests2-27CompliancewithlawsandregulationsIntegrityManagementSystem2-28Membershipassociations

ManagementofTechnologicalInnovation2-29ApproachtostakeholderengagementCommunicationwithStakeholders2-30Collectivebargainingagreements

ProtectionofEmployees’RightsandInterestsGRI3:Materialitytopics20213-3Managementofmaterialtopics

ProcessofAssessingMaterialityIssuesAnalysisResultofMaterialityIssues3-1TheprocessofidentifyingmaterialtopicsAnalysisResultofMaterialityIssues3-2ListofmaterialtopicsAnalysisResultofMaterialityIssues3-3ManagementofmaterialtopicsAnalysisResultofMaterialityIssues

GRI201:EconomicPerformance2016

3-3Managementofmaterialtopics

PleaserefertotheCompany’sAnnualReport201-1Directeconomicvaluegeneratedanddistributed

PleaserefertotheCompany’sAnnualReport201-2

Financialimplicationsandotherrisksandopportunitiesduetoclimatechange

PhysicalriskTransitionriskClimaticopportunity201-3DefinedbenefitplanobligationsandotherretirementplansEmployeeWelfareandCare201-4Financialassistancereceivedfromgovernment

PleaserefertotheCompany’sAnnualReport

GRI202:MarketPresence2016

PleaserefertotheCompany’sAnnualReport202-1

Ratiosofstandardentrylevelwagebygendercomparedtolocalminimumwage

Duetotheconfidentialityofinformation,itisnotpubliclydisclosed202-2Thepercentageofexecutiveshiredfromthelocalcommunity

Duetotheconfidentialityofinformation,itisnotpubliclydisclosed

GRIStandardIndicatorLocation/NoteGRI203:IndirectEconomicImpacts20163-3Managementofmaterialtopics

PleaserefertotheCompany’sAnnualReport203-1Infrastructureinvestmentsandservicessupported

Accelerating“ExpressDeliverytoVillages”toPromoteRegionalEconomicDevelopment

203-2Significantindirecteconomicimpacts

UnblockingchannelsforthecirculationofagriculturalproductsandboostingruralrevitalizationBuildingaSustainableProduction-distributionEcosystemtoPromoteRuralIndustryDevelopmentFacilitatingtheFlowsofAgriculturalProductstoHelpRevitalizeRuralAreasGRI204:ProcurementPractices20163-3Managementofmaterialtopics

SupplierManagementSystemBuildingtheSustainableSupplyChain204-1Proportionofspendingonlocalsuppliers

Duetotheconfidentialityofinformation,itisnotpubliclydisclosedGRI205:Anti-corruption20163-3Managementofmaterialtopics

IntegrityManagementsystemAnti-Corruptionmanagement205-1OperationsassessedforrisksrelatedtocorruptionAnti-Corruptionmanagement205-2

Communicationandtrainingaboutanti-corruptionpoliciesandprocedures

Anti-Corruptionmanagement205-3ConfirmedincidentsofcorruptionandactionstakenAnti-CorruptionmanagementGRI206:Anti-competitiveBehavior2016

3-3ManagementofmaterialtopicsRiskManagementPractice206-1

Legalactionsforanti-competitivebehavior,anti-trust,andmonopolypractices

GRI207:Tax2016

PleaserefertotheCompany’sAnnual

Report207-1Approachtotax

Report207-2Taxgovernance,control,andRiskManagement

Report207-3

Stakeholderengagementandmanagementofconcernsrelatedtotax

Report

GRIStandardIndicatorLocation/Note207-4Country-by-countryreporting

PleaserefertotheCompany’sAnnualReportGRI301:Materials2016

3-3ManagementofmaterialtopicsSustainablePackagingR&D301-1Materialsusedbyweightorvolume

SustainablePackagingR&DTableofEnvironmentalKeyPerformanceIndex301-2RecycledinputmaterialsusedSustainablePackagingR&D301-3ReclaimedproductsandtheirpackagingmaterialsSustainablePackagingR&D

GRI302:Energy20163-3Managementofmaterialtopics

OptimizingEnvironmentalManagementSystemPromoteLow-carbonTransportationEnergymanagement302-1Energyconsumptionwithintheorganization

TableofEnvironmentalKeyPerformanceIndex302-2Energyconsumptionoutsideoftheorganization

TableofEnvironmentalKeyPerformanceIndex302-3Energyintensity

TableofEnvironmentalKeyPerformanceIndex302-4Reductionofenergyconsumption

PromoteLow-carbonTransportationBuildingGreenIndustrialParksEnergymanagement302-5Reductionsinenergyrequirementsofproductsandservices

PromoteLow-carbonTransportationPromotingCircularEconomy

GRI303:WaterandEffluents2018

BuildingGreenIndustrialParksWaterResourcesManagement303-1Interactionswithwaterasasharedresource

BuildingGreenIndustrialParksWaterResourcesManagement303-2Managementofwaterdischargerelatedimpacts

BuildingGreenIndustrialParksWaterResourcesManagement303-3Waterwithdrawal

WaterResourcesManagementTableofEnvironmentalKeyPerformanceIndex303-4WaterdischargeManagementofWaterResources303-5Waterconsumption

ItisnotapplicabletotheCompany’sbusinessoperationscenarios

GRIStandardIndicatorLocation/NoteGRI304:Biodiversity2016

3-3ManagementofmaterialtopicsProtectingtheEnvironment304-1

Operationalsitesowned,leased,managedin,oradjacentto,protectedareasandareasofhighbiodiversityvalueoutsideprotectedareas

SFForest304-2Significantimpactsofactivities,productsandservicesonbiodiversitySFForest304-3HabitatsprotectedorrestoredSFForest304-4

IUCNRedListspeciesandnationalconservationlistspecieswithhabitatsinareasaffectedbyoperations

Notapplicable,thehabitatinthearea

affectedbytheCompany’soperations

doesnotcontainspeciesthathavebeen

listedontheIUCNRedListandthe

NationalConservationRegister

GRI305:Emissions20163-3Managementofmaterialtopics

BuildingGreenIndustrialParks

SustainablePackagingR&D

Exhaust&Noisemanagement305-1Direct(Scope1)GHGemissions

TableofEnvironmentalKey

PerformanceIndex305-2Energyindirect(Scope2)GHGemissions

PerformanceIndex305-3Otherindirect(Scope3)GHGemissions

PerformanceIndex305-4GHGemissionsintensity

CarbonReductionInitiativesand

Effectiveness

PerformanceIndex305-5ReductionofGHGemissions

SustainablePackagingR&D305-6Emissionsofozone-depletingsubstances(ODS)

ItisnotapplicabletotheCompany’s

businessoperationscenarios305-7

Nitrogenoxides(NOx),sulfuroxides(SOx),andothersignificantairemissions

PerformanceIndex

GRI306:Waste2020

Recycleandrecycleexpresspackaging

Wastemanagement306-1Wastegenerationandsignificantwaste-relatedimpactsWastemanagement306-2Managementofsignificantwaste-relatedimpactsWastemanagement

GRIStandardIndicatorLocation/Note306-3Wastegenerated

TableofEnvironmentalKeyPerformanceIndex306-4WastedivertedfromdisposalWastemanagement306-5WastedirectedtodisposalWastemanagement

GRI308:SupplierEnvironmentalAssessment20163-3Managementofmaterialtopics

SupplierManagementSystemBuildingtheSustainableSupplyChain308-1Newsuppliersthatwerescreenedusingenvironmentalcriteria

SupplierManagementSystemBuildingtheSustainableSupplyChain308-2

Negativeenvironmentalimpactsinthesupplychainandactionstaken

SupplierManagementSystemBuildingtheSustainableSupplyChainGRI401:Employment20163-3Managementofmaterialtopics

ProtectionofEmployees’RightsandInterestsEmployeeCareandWelfare401-1NewemployeehiresandemployeeturnoverTableofSocialKeyPerformance401-2

Benefitsprovidedtofull-timeemployeesthatarenotprovidedtotemporaryorpart-timeemployees

EmployeeCareandWelfare401-3ParentalleaveEmployeeCareandWelfareGRI402:Labor/ManagementRelations20163-3Managementofmaterialtopics

ProtectionofEmployees’Rightsand

Interests402-1Minimumnoticeperiodsregardingoperationalchanges

Interests

GRI403:OccupationalHealthandSafety2018

SafetyManagementSystem

SafetyManagementMeasure

EmployeeCareandWelfare403-1OccupationalhealthandsafetymanagementsystemSafetyManagementSystem403-2

Hazardsourceidentification,riskassessment,andincidentinvestigation

SafetyManagementMeasure403-3Occupationalhealthservices

EmployeeCareandWelfare403-4

Workerparticipation,consultation,andcommunicationonoccupationalhealthandsafety

GRIStandardIndicatorLocation/Note403-5WorkertrainingonoccupationalhealthandsafetySafetyManagementMeasure403-6PromotionofworkerhealthEmployeeCareandWelfare403-7

Preventionandmitigationofoccupationalhealthandsafetyimpactsdirectlylinkedbybusinessrelationships

SafetyManagementMeasure403-8

Workerscoveredbyanoccupationalhealthandsafetymanagementsystem

SafetyManagementSystem403-9Work-relatedinjuriesTableofSocialKeyPerformance403-10Work-relatedillhealthTableofSocialKeyPerformance

GRI404:TrainingandEducation2016

3-3ManagementofmaterialtopicsConstructionofTalentTeam404-1Averagehoursoftrainingperyearperemployee

ConstructionofTalentTeam

TableofSocialKeyPerformance404-2

Programsforupgradingemployeeskillsandtransitionassistanceprograms

ConstructionofTalentTeam404-3

Percentageofemployeesreceivingregularperformanceandcareerdevelopmentreviews

ConstructionofTalentTeamGRI405:DiversityandEqualOpportunity20163-3Managementofmaterialtopics

Interests405-1Diversityofgovernancebodiesandemployees

CorporateGovernanceProtectionof

Employees’RightsandInterests

TableofSocialKeyPerformance405-2Ratioofbasicsalaryandremunerationofwomentomen

Duetotheconfidentialityof

information,itisnotpubliclydisclosed

GRI406:Non-discrimination2016

Interests406-1Incidentsofdiscriminationandcorrectiveactionstaken

GRI407:FreedomofAssociationandCollectiveBargaining2016

Interests407-1

Operationsandsuppliersinwhichtherighttofreedomofassociationandcollectivebargainingmaybeatrisk

GRIStandardIndicatorLocation/NoteGRI408:ChildLabor20163-3Managementofmaterialtopics

ProtectionofEmployees’RightsandInterests408-1

Operationsandsuppliersatsignificantriskforincidentsofchildlabor

ProtectionofEmployees’RightsandInterestsSupplierManagementSystemGRI409:ForcedorCompulsoryLabor20163-3Managementofmaterialtopics

ProtectionofEmployees’RightsandInterests409-1

Operationsandsuppliersatsignificantriskforincidentsofforcedorcompulsorylabor

ProtectionofEmployees’RightsandInterestsSupplierManagementSystemGRI413:LocalCommunities20163-3Managementofmaterialtopics

EducationalCharityMedicalCare413-1

Operationswithlocalcommunityengagement,impactassessments,anddevelopmentprograms

ItisnotapplicabletotheCompany’sbusinessoperationscenarios413-2

Operationswithsignificantactualandpotentialnegativeimpactsonlocalcommunities

GRI414:SupplierSocialAssessment2016

SupplierManagementSystemBuildtheSustainableSupplyChains414-1Newsuppliersthatwerescreenedusingsocialcriteria

SupplierManagementSystemBuildingSustainableSupplyChains414-2Negativesocialimpactsinthesupplychainandactionstaken

SupplierManagementSystemBuildtheSustainableSupplyChains

GRI416:CustomerHealthandSafety2016

Real-nameAuthenticationManagementManagementofIllegalandProhibitedArticlesDangerousGoodsTransportation416-1

Assessmentofthehealthandsafetyimpactsofproductandservicecategories

Real-nameAuthenticationManagementManagementofIllegalandProhibitedArticlesDangerousGoodsTransportation

GRIStandardIndicatorLocation/Note416-2

Incidentsofnon-complianceconcerningthehealthandsafetyimpactsofproductsandservices

GRI417:MarketingandLabeling20163-3ManagementofmaterialtopicsEnhancingCustomerExperience417-1RequirementsforproductandserviceinformationandlabelingEnhancingCustomerExperience417-2

Incidentsofnon-complianceconcerningproductandserviceinformationandlabeling

TherewerenoviolationsinvolvingproductandserviceinformationandlogosinSFin2023.417-3Incidentsofnon-complianceconcerningmarketingcommunications

TherewerenoviolationsinvolvingmarketingcommunicationsinSFin2023.GRI418:CustomerPrivacy20163-3Managementofmaterialtopics

EnsuringInformationSecurityCustomerPrivacyProtection418-1

Substantiatedcomplaintsconcerningbreachesofcustomerprivacyandlossesofcustomerdata

EnsuringInformationSecurityEnhancingCustomerExperienceSustainabilityAccountingStandardsBoardIndex(SASBContentIndex)

SustainabilityDisclosureTopics&AccountingMetrics

TopicAccountingMetricCategoryCodeLocation

GreenhouseGasEmissions

GrossglobalScope1emissionsQuantitativeTR-AF-110a.1

TableofEnvironmentalKeyPerformanceDiscussionoflong-termandshort-termstrategyorplantomanageScope1emissions,emissionsreductiontargets,andananalysisofperformanceagainstthosetargets

DiscussionandAnalysis

TR-AF-110a.2

Climate-relatedInformationDisclosuresFuelconsumedby(1)roadtransport,percentage(a)naturalgasand(b)renewable,and(2)airtransport,percentage(a)alternativeand(b)sustainable

QuantitativeTR-AF-110a.3

PromoteLow-carbonTransportationTableofEnvironmentalKeyPerformance

TopicAccountingMetricCategoryCodeLocationAirQuality

Airemissionsofthefollowingpollutants:(1)NOx(excludingN2O),(2)SOx,and(3)particulatematter(PM10)

QuantitativeTR-AF-120a.1

TableofEnvironmentalKeyPerformance

LaborPractices

Percentageofdriversclassifiedasindependentcontractors

QuantitativeTR-AF-310a.1NotApplicableTotalamountofmonetarylossesasaresultoflegalproceedingsassociatedwithlaborlawviolations

QuantitativeTR-AF-310a.2NotApplicable

EmployeeHealth&Safety

(1)Totalrecordableincident

rate(TRIR)and(2)fatalityratefor(a)directemployeesand(b)contractemployees

QuantitativeTR-AF-320a.1

SupplyChainManagement

PercentageofcarrierwithBASICpercentilesabovetheFMCSAinterventionthreshold

QuantitativeTR-AF-430a.1NotApplicableTotalgreenhousegas(GHG)footprintacrosstransportmodes

QuantitativeTR-AF-430a.2

Accident&SafetyManagement

DescriptionofimplementationandoutcomesofaSafetyManagementSystem

Discussionand

Analysis

TR-AF-540a.1SafetyManagementSystemNumberofaviationaccidentsQuantitativeTR-AF-540a.2

TableofSocialKeyPerformanceNumberofroadaccidentsandincidents

QuantitativeTR-AF-540a.3NotApplicableSafetyMeasurementSystemBASICPercentilesfor:(1)UnsafeDriving,(2)Hours-of-ServiceCompliance,(3)DriverFitness,(4)ControlledSubstances/Alcohol,(5)VehicleMaintenance,and

(6)HazardousMaterials

Compliance

QuantitativeTR-AF-540a.4NotApplicable

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1.全球在线教育启示录:AI为在线教育注入二次生命力全球在线教育市场正在迎来蓬勃发展,在线学习平台已成为用户人数最多、渗透率最高的在线学习模式。根据Statista,目前全球在线教育市场主要分为在线大学、在线平台学习以及专业证书三大市场,截至2023年,三大市场规模分别为1032.8/566.3/66.6亿美元,全球在线教育市场规https://mp.weixin.qq.com/s?__biz=MzU5NzY3ODQ3Ng==&mid=2247549238&idx=1&sn=b0ff34654f9a1746dd8a49fe938223be&chksm=ff05d27f5d7214210e83abd2b7b43752d45278fb76d0afbe43b17260aeeb2d7f286192c2a2ce&scene=27
2.XinmingWuteachingIn this course, we learn the basic concepts of artificial intelligence (AI) and its applications in Geosciences. The course coves 1) mathematic fundamentals of neural networks; 2) AI software platforms (Python, Jupyter, Tensorflow/Keras, cloud computing); 3) classic machine learning classifiers; http://cig.ustc.edu.cn/teaching/list.htm
3.OnInstrumentalVariableRegressionforDeepOfflinePolicyJournal of Machine Learning Research 23 (2022) 1-40 Submitted 6/21; Revised 11/22; Published 11/22 On Instrumental Variable Regression for Deep Offline Policy Evaluation Yutian Chen DeepMind R7, 14-18 Handyside Street King's Cross London N1C 4DN Liyuan Xu Gatsby Unit Caglar Gulcehre DeepMindhttps://dl.acm.org/doi/pdf/10.5555/3586589.3586891
4.challengesofonlinelearning作文online learning, or in the search and search of offline learning resources, only with the support of strong independent learning ability, can we receive the expected learning effect.It can be seen that online learning puts forward higher requirements for both teachers and students, and achieving https://wenku.baidu.com/view/aba2e0f5a900b52acfc789eb172ded630b1c98f1.html
5.BackpropagationerrorfunctionlandscapeOnlinelearning is used for dynamic environments that provide a continuous stream of new training data patterns.Offlinelearning makes use of a training set of static patterns. Limitations[edit] Gradient descent can find the local minimum instead of the global minimum https://blog.csdn.net/omnispace/article/details/54754707
6.英语讨论I think that online learning has both advantages and disadvantages, so let me share my https://www.jianshu.com/p/cf67e95b05c2
7.五个工业风满满的Lookalike算法2.4.1 offline Learning 「离线训练」部分包括 User Representation Learning 和 Look-alike Learning,前者用于学习用户的特征向量,后者是基于用户特征向量计算相似分数。 User Representation Learning 模块是基于 Youtube DNN 模型进行改进,左侧为用户特征,并用 Attention 代替 concat,左侧为 Item 特征,然后整体做 SCE Lohttps://www.51cto.com/article/670347.html
8.RSPHRSPHLearnFreeRSPH LearnFree hosts all of RSPH free educational resources including our online courses, webinars, videos, podcasts, reports and resources.https://www.rsph.org.uk/our-services/e-learning/rsph-learnfree.html
9.OracleOur runtimes demonstrate an efficient reduction from online to offline learning. While, in theory, the auction classes discussed in the table do not have worst-case polynomial- time algorithms for the offline problem, in practice, the offline problems are solved by a wide range of approaches, https://www.cs.cornell.edu/~nika/pubs/main-oracle-efficient.pdf?ref=hackernoon.com
10.ApplicationsofreinforcementlearninginenergysystemsDeep learning techniques and state-of-the-art actor-critic methods were not used by many articles. ? Batch reinforcement learning algorithms haveData-driven models, also known as black box control methods, use the knowledge derived by processing online or offline data instead of depending https://www.sciencedirect.com/science/article/pii/S1364032120309023
11.Designinglearningandassessmentinadigitalage"Quality matters - it is not about the percentage of online content but how effective the learning is." James Kieft, learning and development managercurrent practice by plotting activities on a graph before creating a new storyboard of learning activities, both online and offline, for that https://www.jisc.ac.uk/guides/designing-learning-and-assessment-in-a-digital-age
12.MobileLearningBrowse Mobile Learning content selected by the eLearning Learning community.http://www.elearninglearning.com/mobile-learning/
13.LearnEnglishParents can rest easy knowing that there are no pesky ads to distract children from their learning. All content is appropriate for ages 3 and up. ? Offline Learning. On a plane, at a restaurant, or in a park? No problem! Fun English is available for both online and offline use. https://apps.apple.com/bo/app/learn-english-studycat/id428920239?l=en-GB
14.DeepReinforcementLearningApply deep reinforcement learning to controls and decision-making applications with MATLAB and Simulink.https://www.mathworks.com/solutions/deep-learning/deep-reinforcement-learning.html
15.ColumbiaShipmanagementenablesofflineeLearningwithAdobeDevelop interactive and engaging learning modules easily Results 50% of coursesdelivered through eLearning, eliminating time consuming travel 5K eLearning courses completed bythousands of learnersin approximately six months Supportsoffline learningideal for crew members working at sea https://business.adobe.com/dk/customer-success-stories/columbia-shipmanagement-case-study.html
16.LearningManagementSystem:ADefinitiveGuideThe administrator should easily track learner data in LMS storage. They can then use the data to enhance the LMS’s content. Data tracking also will help the administrator personalize the learning environment. A good LMS should also have offline learning data via offline data capture processes. http://www.sweetprocess.com/learning-management-system/
17.EThe government has also distributed television-based Televisi Edukasi equipment to some 35,198 junior high schools, and has developed thousands of programs comprising on and offline learning activities, TV broadcast materials and audio programs throughout Indonesia. “Globalization has pushed the https://lirneasia.net/tag/e-learning/
18.OfflineReinforcementLearningwithImplicitQOffline reinforcement learning requires reconciling two conflicting aims: learning a policy that improves over the behavior policy that collected the dataset, while at the same time minimizing the deviation from the behavior policy so as to avoid errors due to distributional shift. This trade-off ishttps://ui.adsabs.harvard.edu/abs/arXiv:2110.06169
19.GatewaystoPublicDigitalLearningUNICEFDigitalEducationThe IndonesianMinistry of Education, Culture, Research and Technologywill share how its “Merdeka Belajar” (Emancipated Learning) policy has facilitated changes to education in both offline and online learning environments. Representatives from approximately 25 countries will share knowledge and experiences https://www.unicef.org/digitaleducation/gateways-public-digital-learning
20.WhatislearningKeyConceptsofandAdvantagesLearningLearning is defined as gaining knowledge, preferences, attitudes, behavior, understanding, values, and skill. The ability to learn is most prominent in humanshttp://www.marketing91.com/learning/
21.Thelearningcycle:Kolb’smodelWith technological advancements and changing circumstances, the need for alternatives to traditional face-to-face education is rising. Blended learning combines hard and soft, online and offline, and individual and group learning– the options hereby are endless! Inchainge’s business simulations lend https://inchainge.com/knowledge/experiential-learning/learning-cycle/
22.XJTLULearningMallonline and offline integration, school government and enterprise integration, and all-level integration," addressed by Professor Youmin Xi, executive presidentThe forum is organized by XJTLU's Learning Mall, which was upgraded to an online interactive learning dual-platform (www.learningmall.cn) onhttps://www.learningmall.cn/en/news/education-digital-intelligence-transformation-and-development-forum-held-in-suzhou.html
23.MachineLearningDefinition,types,andexamplesSAPMachine learning is a subset of artificial intelligence (AI) in which computers learn from data and improve with experience without being explicitly programmed.https://www.sap.com/products/artificial-intelligence/what-is-machine-learning.html