In 2025, the Quality Management Department worked closely with production operations and collaborated with all workshops to comprehensively review and optimize the existing operational standards, further promoting the standardization and normalization of on-site operations.

Risk Prevention

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. adheres to the management principle of “prevention first, combining prevention with control.” Focusing on key factors such as new vessel types, new processes, new materials, new equipment, and new suppliers, the company has established and improved an incoming quality risk identification and control mechanism, moving risk identification and prevention to the project initiation and supply chain management stages to prevent and reduce quality risks at the source.

Relevant incoming quality risks have been incorporated into the Management Measures for Product Quality Risk Identification, Assessment and Control Measures and the Management Provisions for External Suppliers of Offshore Engineering Projects, achieving standardized and institutionalized management.

Measures Risk Identification FAT Control Incoming Material Inspection The company identified 33 The company completed 24 The company strictly implemented incoming quality risks in advance Factory Acceptance Tests (FAT) dual incoming material inspections for methanol dual-fuel vessels for offshore engineering and by the Materials Department and critical components of methanol projects, identified and the Quality Management offshore engineering projects and recorded 87 comments, and Department. From January to and formulated full-process achieved a comment closure rate December, 5,313 batches of control measures covering of 9 7 . 7 % , effectively preventing incoming materials were inspected pre-identification, in-process equipment with defects from before warehousing, ensuring inspection, and post-completion entering the shipyard. strict control over the quality of verification. raw materials.

Process Control

Supported by its quality management system, the company has implemented an “all-staff, whole-process, and all-round” quality management model. Through measures such as implementing the Authorized Inspector System, promoting the development of Self-Inspection Exempt Teams, strictly implementing the three-level inspection system, and conducting special quality inspection tours, the company has strengthened quality control throughout the entire construction process, continuously improved the self-managed quality capabilities of workshops, and effectively enhanced employees' quality awareness and overall execution capabilities.

T h e c o m p a n y a d o p t e d a training model combining t h e o r y a n d p ra c t i ce a n d Developed 28 standardized training materials for 心 awarded dedicated helmet s t i c k e r s t o a u t h o r i z e d authorized inspectors across all workshops. Authorized inspectors who passed the a s s e s s m e n t , e f f e c t i v e l y Organized 12 rounds of training with 415 pector System strengthening quality control a n d s e l f - m a n a g e m e n t participants. capabilities at the frontline team level. The company comprehensively evaluated the operation of existing self-inspection exempt teams, drew on best practices I^ from peer companies, optimized the lf-Inspection Implementation Rules for the Management Established 12 self-inspection of Self-Inspection Exempt Teams, and Exempt Team exempt teams. promoted the establishment of selfDevelopment inspection exempt teams across workshops to set benchmarks for excellent construction practices. c T h e co m pa n y ca r r i e d o u t Conducted a total of 157 quality inspection tours monthly special self-inspection tours to strengthen independent across all production lines. Quality Inspection quality control at construction Tours sites. Rectified 7,181 on-site quality issues.

Skills Development

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has established a tiered and categorized quality training system. Relying on diversified platforms such as skills competitions, QC groups, and TQC improvement activities, the company has systematically enhanced employees’ professional skills and quality management capabilities, striving to build a high-quality quality management team and continuously fostering a strong culture in which everyone values quality and everyone contributes to quality.

Tiered Training Delivered with Tangible Results

The company organized 129 “Production Management and Overall Quality” training sessions for management personnel, covering 4,405 participants, effectively enhancing the quality awareness and management capabilities of the management team.
Meanwhile, all departments organized 151 quality training sessions with 47,232 participant attendances, comprehensively improving the professional skills and quality awareness of construction personnel.

Quality Teams Established

In 2025, the company collaborated with the Production, Technology, Workshops, Assets, Materials, and Digital Intelligence departments to establish 20 QC groups.
A total of 47 TQC improvement projects were carried out during the year, achieving a 100 % completion rate.

Skills Enhancement and Professional Certification

To meet production needs, the company organized personnel on a regular basis to obtain professional certifications such as CWI, NACE, and COMPEX, as well as classification society welder qualifications. At present, the company holds various professional qualification certificates and 456 classification society welder qualification certificates, providing talent support for high-quality construction. The company also organized ±b { 8 } skills competitions jointly with all workshops, involving 243 participant attendances, effectively improving the skills of construction personnel and fostering a quality culture of learning, benchmarking, and continuous improvement.

During the Quality Month, the company organized a series of themed activities under the theme of “Advocating Quality and Pursuing Excellence.” The activities covered quality promotion, themed signature campaigns, skills competitions, innovation achievement presentations, and warning education through case studies, comprehensively strengthening quality awareness among all employees and promoting the spirit of craftsmanship and the pursuit of excellence.

In addition, the company strictly followed the Group's arrangements by actively participating in quality management meetings and specialized training programs. Benchmarking against industry best practices and the outstanding experience of peer companies, the company continuously optimized its quality philosophy and further promoted a company-wide quality management culture.

Quality Honors

2025 Shanghai Marine Equipment Vocational Skills Competition

An employee from the Service Workshop won the Bronze Medal in the Hoisting and Loading Machinery Operator event.
An employee from the Mechanical & Electrical Workshop received the Excellence Award in the Ship Machinery Assembler event.
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. was recognized as an Outstanding Organization of the 2025 Shanghai Marine Equipment Vocational Skills Competition.

Jiangsu Marine Transportation Industry Vocational Skills Competition and the 8th “COSCO SHIPPING Cup” Employee Skills Competition

Won five Third Prizes.

Won the Second Prize in the COSCO SHIPPING Heavy Industry “AI ^ + Work Safety” Application Innovation Labor Competition.

Ship Machinery Assembler Event

Customer Service

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has continuously optimized its service system. In 2025, the company enhanced customers’ on-site service experience by upgrading reception facilities such as the office building and dining hall. It conducted company-wide business etiquette training to standardize service practices, implemented a“one-to-one” project manager system to provide dedicated services throughout the entire project process, and established a closedloop service management mechanism to continuously improve customer satisfaction.

At the same time, the company actively explored value-added technical services and continued to deepen customer cooperation through professional, efficient, and high-quality services.

2025

Ship Repair Project Customer Satisfaction 9 9 . 7 %

Offshore Engineering Project Customer Satisfaction 98.45%

Customer Commendation Letters Received 64

Space Transformation, Service Upgrade!

New Office Facilities of COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. Officially Launched

Supplier Management

Compliance Management

The company has established a rigorous supplier sanctions screening mechanism. All procurement personnel use the Compliance Risk Management System to conduct full-process risk screening at key stages, including supplier onboarding, contract execution, and foreign currency payments. The company regularly updates relevant international policies and conducts compliance training for employees to strengthen risk awareness across the workforce. At the same time, it organizes training sessions for suppliers on compliance risk management relating to relevant international policies and requires suppliers to sign compliance declarations and commitment letters, building a coordinated compliance management system across the supply chain.

Performance Evaluation

The company has continuously enhanced supply chain resilience by strictly implementing annual and routine supplier evaluations, rigorously controlling supplier admission, and improving long-term cooperation and dynamic management mechanisms. Based on suppliers’ historical cooperation records, daily performance, and annual evaluation results, the company has implemented full-cycle supplier management, completed the annual supplier review, and increased the sampling ratio for routine evaluations, continuously optimizing the supplier structure and ensuring the overall competitiveness of the supplier pool.

2025

Suppliers Eliminated or Frozen 117

New Suppliers Added 153

Qualified Approved Suppliers 350

On-site Supplier Audit

欢

To meet the needs of methanol dual-fuel retrofitting projects, the company gave priority to introducing suppliers of key components certified by classification societies.

9

The company established a risk early warning mechanism. In response to the long supply chains and rapid technological iterations of new energy equipment, it set inventory warning thresholds for key components and established a list of alternative suppliers.

The company promoted green energy procurement by giving priority to clean energy sources such as pipeline natural gas.

0

The company strengthened collaborative carbon footprint management by promoting the inclusion of supply chain enterprises in the carbon footprint accounting system, requiring suppliers to provide carbon emission data for raw materials, and giving priority to enterprises certified as green factories, such as suppliers of marine steel and composite materials, including leading green manufacturers such as Shougang Group and Nanjing Iron & Steel Co., Ltd.

The company promoted suppliers' certification to ISO 14067 (Carbon Footprint) or ISO 50001 (Energy Management) and incorporated certification results into the procurement evaluation system. For example, battery suppliers were required to provide battery recycling and disposal plans.

Quality Collaboration

A supplier non-conformance information collection mechanism has been established to support suppliers in improving product quality through initiatives such as thematic workshops and quality collaboration. Key inspection checkpoints and quality control procedures have been standardized to strengthen quality assurance.

The Company has fully implemented the EP online procurement platform for marine materials. The approval process has been integrated into the CIIP system and connected with the Group's compliance management system, enabling standardized, digitalized, and compliant management throughout the entire procurement process.

2025

Collected 3 4 cases of negative supplier performance information, dynamically reflecting supplier performance and supporting timely response.

Conducted 22 special quality issue review meetings to support suppliers in improving product quality.

Organized \bullet quality co-development activities for key material suppliers and subcontractors.

Reviewed 58 subcontracting projects, identified key inspection points, and standardized the quality control process for subcontracted products.

Annual Outstanding Partner Appreciation Conference

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. attaches great importance to the development of its subcontractor workforce. In January 2025, the company held the 2024 Annual Outstanding Partner Appreciation Conference under the theme of “Working Together with One Vision for Shared Prosperity, Mutual Benefit, and Common Growth.” Members of the company's management team, middle management from various departments, industry partners, and 150 representatives from 86 subcontractors gathered to discuss development and celebrate achievements.

During the conference, a number of subcontracting companies and individuals with outstanding performance in areas such as safety and quality were recognized and commended.

Industry Collaboration

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has always adhered to the development philosophy of openness, sharing, and collaborative innovation. The company is committed to actively sharing cutting-edge technological achievements and practical experience with industry partners, strengthening technical exchanges, resource complementarity, and strategic cooperation, and working together to promote the green, low-carbon, safe, and efficient development of the industry and advance its high-quality development.

Participation in Marintec China with On-site Presentations

In 2025, COSCO SHIPPING Heavy Industr y (Shanghai) Co., Ltd. signed a Memorandum of Cooperation on Green Technology Retrofit with the China Classification Society (CCS) to carry out in-depth cooperation in frontier fields such as alternative fuel applications and low-carbon ship retrofits. Both parties fully integrated their technological, resource, and market advantages to jointly promote the demonstration, design, and approval of green retrofit solutions. By establishing industry technology benchmarks, expanding market

competitiveness, building a collaborative ecosystem, jointly overcoming key technical barriers, and leading the low-carbon transformation of the shipping industry, the cooperation has continuously enhanced China's core competitiveness and industry influence in the international green ship retrofit sector.

Experience Sharing on Methanol Dual-Fuel Retrofitting of Large Container Ships

At the experience-sharing seminar on the first 20K TEU container ship methanol dual-fuel retrofitting project organized by the COSCO SHIPPING Heavy Industry Research Institute, the Technology R&D Center shared experience with other ship repair enterprises on key topics including retrofitting design, methanol fuel supply system design and commissioning, and classification society requirements and inspections.

The COSCO SHIPPING Heavy Industry Research Institute also organized an on-site visit to the company's 13.8K TEU methanol retrofitting project.

Appendix

Performance Data Table

GRI Standards Content Index

Carbon Verification Statement

DNV

VERIFICATIONOPINIONOF GREENHOUSEGAS STATEMENT

Opinion No.： Date of issue: 00020-2026-GHG-RGC 29April2026

Page 1of 5

Thisistoverify initiatereporting of Greenhouse Gas Emissions Inventory Report(2025)of

COSCO SHIPPING HEAVY INDUSTRY (SHANGHAI) CO., LTD

Scope ofVerification

DNV Business Assurance (DNV) has been Commissioned by COSCO SHIPPING HEAVY INDUSTRY (SHANGHAI) CO.,LTD.(hereafter the“Company") to performa verificationof theGHG Emissions Inventory Report (2025) (hereafter the"Inventory Report") in China,thescope of the verification is settothereporting boundarycovered bythis Inventory Report,asdetailedinAppendixA&Bof this opinion.

Verification CriteriaandGHG Programme

Theverification wasperformed onthe basis of ISO14064-1:2018,as wellas those given to provide forconsistent GHG emission identification,calculation,monitoringand reporting. Theimplementation processof the verification,isinaccordance withtherequirements of standards ofISO14066:2023,ISO14065:2020andIS014064-3:2019etc

VerificationOpinion

It isDNV's opinionthatthe Inventory Report,which was published in March 2026,is free from material discrepancies inaccordancewiththe verificationcriteriaidentifiedasstatedabove.The opinion isdecided based on the followingapproaches,

FortheDirect GHGemissions(Category1)andIndirectGHGemissionsfromimportedenergy(Category2), thereliabilityoftheinformationwithintheInventoryReportwereverifiedwithreasonablelevelof assurance. Forthe other Indirect GHG emissions (Category 3),the involved information was verified and tested using agreed-upon procedures (AUP). Inaddition,the information listed inattached AppendixA&B&Cwerealso verified during the process.

Place and date: Shanghai, 29 April 2026

Opinion No.:00020-2026-GHG-RGC Placeand date:Shanghai,29 April 2026

Page2 of 5

SupplementtoStatement

Processand Methodology

Thereviewsof the Inventory Reportand thesubsequent follow-up interviewshave provided DNVwith sufficient evidence to determine the fulfilment of stated criteria.

QuantificationofGreenhouse Gas Emission

TheInventoryReportcoveringtheperiodfrom01January2025to31December2025,itis DNV's opinion that the Inventory Report resultsinquantificationof GHG emissions that arereal, transparent and measurable.

Organizational BoundaryofVerification

□Financial Management Control区Operational Management Control□Equity Share

GHGsVerified

区CO2区CH4区N2O区HFCsPFCsSF6区NF3

.For details of the Direct GHG emissions please refer to Annex C.
2.Emissionsfrom transportationorganization were quantified based onthe Ecoinvent 3.12 andannounced in Announcementon 2023EmissonFactors for PowerGridin China by Ministryof Ecologyand Environmentand Bureau ofStatisticson31Dec.2025;2.1ForMarket-basedapproach:Purchasedgreenelectricityhasanemissionfactorof
0kgCO2e/kWh.Theremainingelectricityuses theResidualMix gridemissionfactorof0.6096kgCO2e/kWh;2.2For location-based approach:The grid emission factor of O.53o6 kgCO2e/kWh is applied.
3.Thescope of indirectemisionswasdefinedby Company'sownpre-determined criteriaforsignificanceof indirect emissions, considering the intended use of the GHG inventory.
4.The Global Warming Potential (GWP)100 year defined in IPCC AR6 has been chosen and refered by the company.

VerificationOpinion

区Verifiedwithout Qualification VerifiedwithQualification UnabletoVerify

Assurance Statement

Page 1of 2
Statement No.: DNV-2026-ASR-864392

Page 2 of 2
Statement No.: DNV-2026-ASR--864392

Independent Limited AssuranceStatement

DNV Business Assurance(China)Co.,td.(“DNV",“we"or“us") wereengaged byCOSCO SHING HAVYINDUSTRY (SHANGHAl) CO. LTD.the“Company)toconduct alimited assurance engagement overSelected Information presented in theCompany's2025 SustainablityReportand2O25GRlIndex (together，“theReport"），coveringthereportingyearended31December2025.The stakeholders of the Company are the intended users of this statement.

OurConclusion:Based on the procedures
nothing hascome to our attention that causes us to believe that the Selected Information is not fairly statedand hasnot been prepared,inallmaterialrespects,inaccordance withthe Criteria. This conclusion relates only tothe Selected Information,and is to be read in the context of this IndependentLimited Assurance Statement,inparticularthe inherent limitationsexplained verea

心

Selected information

The scope and boundary of our work is restricted to the key performance indicators included within the Report (the “Selected Information").

Liquefied gas(tonnes)
Diesel(tonnes)
Gasoline(tonnes)
Purchased heat(GJ)
On-site photovoltaic self-generated and self-consumed
electricity(kWh)
Net purchased electricity (kWh)
Purchased green electricity(kWh)
Total water withdrawal(10,oo tonnes)
Total volume of wastewater discharged[10,ooo tonnes)

Ourobservations and areas for improvement will be raised ina observationsare provided below.These observations do not affect our conclusion set out below:

The Company has established a variety of processes for collecting and consolidating the various data it reports and utilizes an information managementsystem to improve the reliabilityand quality of the data. In addition, the Company retires Green Electricity Certificates on a monthly basis. We have confidence in the process in place to ensure reasonable accuracyfor the information presented in the Report and management systems However, the scope of a small portion of the data disclosed in the Report is unclear.Itis recommended to further clarify data definitions, improve data continuity, and strengthen ctatisctical analysis of performance information to enhance sustainability management

Total number of employee(persons) Total number of female employee(persons) Employee turnover rate(%) 1 Number of work-related fatalities(persons) Number ofrecordable work-relatedinjuriestimes) Totalrecordable incident rate(%) , Total weight of general solid waste(tonnes) ■ Total weight of hazardous waste(tonnes) Number of external training sessions(times)

We performed a limited data only assurance engagement using the international assurance best practice including the International Standard on Assurance Engagements (ISAE) 3000 - 'Assurance Engagements other than Audits and Reviews of Historical Financial Information’ (revised) issued by the International Auditing and Assurance Standards Board

Ourcompetence,independence and quality contro

DNV established policies and procedures are designed to ensure that DNV, its personnel and, where applicable, others are subject to independence requirements (including personnel of other entities of DNV) and maintain independence where required by relevant ethical requirements. This engagement work was carried out by an independent team of sustainability assurance professionals. Our multi-disciplinary team consisted of professionals with a combination of environmental and sustainability assurance experience.

To ensure consistency in our assurance process, we conducted our work in accordance with DNV's assurance methodology, Verisustain,applying onlythepertinentsections ofthe protocolrelevanttothespecific purpose of the activity.

This methodology ensures compliance with ethical requirements and mandatesplanningandexecution ofthe assuranceengagementtoobtain the desired level of assurance.

DNV applies its own management standards and compliance policies for quality control, which are based on the principles enclosed within ISO IEC 17029:2019-Conformity Assessment -General principlesand requirements for validation and verification bodies, and accordingly maintainsa comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements,professionalstandards,and applicable legal and regulatory requirements.

The procedures performed in a limited assurance engagement vary in nature and timing from,and are lessin extent than for, a reasonable assurance engagement;and the level of assurance obtainedis substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. We planned and performed our work to obtain theevidence we considered sufficient to provide a basis for our opinion, so that the risk of this conclusion being in error is reduced but not reduced to very low.

Basis of our conclusion

We are required to plan and perform our work in order to consider the risk of material misstatement of the Selected Information; our work included, but was not restricted to:

Conducting interviews with the Company’s management to obtain an understanding of the key processes, systems and controls in place to generate, aggregate and report the Selected Information;
Paying site visits to the Company to review process and systems for preparing site level data;
Performing limited substantive testing on a selective basis of the Selected Information to check that data had been appropriately measured, recorded, collated and reprted;
Reviewing the specified data collected at Company level;
Reviewing that the evidence, measurements and their scope provided to us by the Company is prepared in line with the Criteria;
Assessing the appropriateness of the Criteria for the Selected Information, and
Reading the Report and narrative accompanying the Selected Information within it.

Wayne.Li Wavne Lead Verifier

Shanghai, China 11 May 2026

Inherent limitations

Allassurance engagements are subject to inherent limitations as selective testing (sampling) may not detect errors,fraud orother irrgularities.Nonfinancial data may be subject to greater inherent uncertainty than financial data, given the nature and methods used for calculating, estimating and determining such data. The selection of different, but acceptable, measurement techniques may result in different quantifications between different entities. Our assurance relies on the premise that thedata and information provided tous by the Company have been provided in good faith. DNV expressly disclaims any liability or co- responsibility for any decision a person or an entity may make based on this Independent Limited Assurance Statement.

Responsibilities of the management of th Company and DNV

The management of the Company has sole responsibility for:

· Preparing and presenting the Selected information in accordance with the Criteria;
. Designing, implementing and maintaining effective internal controls over the information and data,resulting in the preparation of the Selected Information that is free from material misstatements;
· Measuring and reporting the Selected Information based on their established Criteria, and
· Contents and statements contained within the Criteria.

Our responsibility is to plan and perform our work to obtain limited assurance about whether the Selected Information has been prepared in accordance with the Criteria and to report to the Company in the form of an independent limited assurance conclusion, based on the work performed and the evidence obtained. We have not been responsible for the preparation of the Report.

Management Representative

Ttateettefu signedineseso;efdseantepetatioetwetttsesftteet statement shall prevall,

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