Environmental Management

Governance System

In 2025, COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. revised institutional documents, including the Emergency Response Plan for Heavy Air Pollution and the Self-monitoring Plan for Pollution Sources, in accordance with laws, regulations, and the requirements of competent authorities, further improving its environmental governance system.

Working Mechanism

CHI (Shanghai) has established an Environmental Supervision Leading Group and its Office. The Company advances various environmental improvement initiatives through monthly Safety C o m m i tte e m e et i n g s , while major environmental matters are decided and deployed by Company leadership.

An Environmental Protection Office has been established under the Safety and Environmental Super vision Department, which is specifically

Each department/workshop has established an environmental protection team responsible for the fundamental environmental management work within its respective area.

responsible for the Company's environmental management. The Company regularly convenes e n v i r o n m e n t a l p r o t e c t i o n meetings to discuss, coordinate, and advance environmental work.

Since 2009, the Company has continuously engaged a professional environmental consulting service provider (“Environmental Steward”) to provide technical consultation and services. Through systematic assessments of the Company's environmental performance, the ser vice provider has offered professional solutions to environmental management challenges and enhanced the Company's environmental governance capabilities.

Regularly convene environmental protection meetings

Emergency Management

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has continuously improved its environmental risk prevention and control as well as emergency management system. Based on its production operations, the Company regularly organizes emergency drills covering multiple scenarios, including oil spill response, hazardous

2025

Conducted 26 emergency drills.

chemical leakage, and environmental emergencies, to strengthen the rapid response and coordinated operational capabilities of frontline personnel. Through the closed-loop management of drills and evaluations, the Company continuously optimizes emergency response plans, enhances emergency materials and equipment allocation, and improves its capability for the scientific handling of environmental emergencies.

Water Pollution Emergency Drill

To further strengthen water pollution prevention and emergency response, the Company signed the Water Pollution Prevention Emergency Support Service Agreement with Shanghai Haiyuan Ship Pollution Waste Treatment Co., Ltd. and regularly conducted company-level emergency drills.

Environmental Education

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has embedded environmental protection concepts into every level of corporate management, establishing a three-level environmental responsibility system of “Heavy Industry and the Company, the Company and Departments, Departments and Employees,” with environmental responsibility letters and commitment letters signed at each level. In terms of education and training, the Company has systematically developed thirty-two training materials and operating standards covering environmental protection regulations,

operational requirements, and emergency response. The Company regularly conducts environmental protection training for all employees and provides specialized expert-level training for management personnel to enhance professional environmental protection capabilities.

Environment Day Activities

In 2025, the Company carried out the themed environmental education campaign of “June 5 Environment Day — Beautiful China, I Am a Contributor”. Through various forms, including environmental protection exhibition boards, knowledge quizzes, and waste classification interactive games, the Company promoted knowledge on carbon peaking, vessel emission reduction, and hazardous waste disposal. By integrating education with entertainment, the Company enhanced employees’ environmental awareness and promoted the deeper integration of green and low-carbon concepts into daily practices.

Resource Conservation

Material Management

Optimize inventory management

The Company has strengthened the alternative utilization and downgraded use of overstocked materials, promoted the recycling and reuse of existing materials, improved inventory turnover efficiency, and effectively reduced inventory redundancy risks.

Strengthen basic warehouse management

The Company has implemented designated storage location management for the comprehensive warehouse, steel plate warehouse, and offshore engineering warehouse, with unified identification and signage. The Company has also implemented the regional 6S responsibility system with performance assessment assigned to individuals, enhancing the initiative of warehouse personnel.

Standardize bonded material management

The Company has established bonded storage areas, improved bonded material management systems, optimized the categories and quantities of regular inventory, and continuously reduced the overall inventory volume.

Old Pontoon Barges “Transformed” to Save Dozens of Tons of Steel

To address the issue of the high customization cost of typhoon shelter berthing equipment, the Technology R&D Center carried out innovative design based on existing resources. Three existing pontoon barges were widened and modified. By leveraging the advantages of the large-panel structure of I-beams, the need for internal structural reinforcement processes was eliminated, with an estimated saving of dozens of tons of new steel materials.

Meanwhile, for the newly added No. 4 pontoon barge, a modification plan combining an old pontoon barge with a seawater lifting pump protective cover was adopted. Compared with the use of more than one hundred tons of new steel structures for pontoon barges of the same specifications, this approach further saved dozens of tons of new steel materials.

This initiative not only significantly reduced the procurement cost of new materials but also effectively reduced idle waste of old equipment, achieving dual benefits of cost reduction, efficiency improvement, and green environmental protection.

Energy Efficiency Improvement

The Company strictly complies with laws and regulations related to energy management. In accordance with internal systems such as the Energy Management Regulations and Detailed Rules for Energy Management, the Company has established the Green Production and Energy Management Committee to coordinate the implementation of various decisions and actively promote new energy-saving technologies and processes. In 2025, the Company completed multiple energy-saving projects, covering key areas such as energy utilization and oil-to-electricity conversion, continuously promoting more efficient, scientific, and standardized energy management.

DNV ISO 50001 Certificate

Equipment Enhancement

Electric Forklift

Electromagnetic Heater

Production Energy Conservation

The Coating Workshop actively responded to national environmental protection requirements and proactively carried out VOCs desorption and regeneration. The initiative involved nine VOCs treatment units and 12,672 activated carbon blocks, achieving the recycling and reuse of activated carbon. In response to the preheating energy consumption issue of the RTO system, the Environmental Protection Team of the Coating Workshop carried out technical improvements to the filter emergency exhaust valve structure, successfully enabling simultaneous operation during the preheating stage.
For the pre-coating operation involving a segmented area of 908 square meters, the Workshop actively explored new construction approaches by adjusting part of the manual pre-coating process to a combined mode of pre-coating spray guns and manual operation. This successfully reduced the total construction time for the second pre-coating process from twenty-one hours to ten hours, saved one-third of electricity consumption, and significantly improved operational efficiency.
In response to condensation issues at the bottom of the dock, the Workshop carried out technological innovation and independently developed a movable high-power air blower cart, increasing airflow by more than thirty times. After improvement, the number of operators, operation time, and single-use costs were significantly reduced, while eliminating the risk of electric shock.

Water Resources Management

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. attaches great importance to water conservation and efficient water utilization, strictly complies with water-related laws and regulations, and has established and improved a whole-process water use management mechanism. Through optimizing production processes, promoting water-saving technology upgrades, and strengthening water consumption measurement, monitoring, and control, the Company continuously improves water resource utilization efficiency.

Coating Workshop Developed Self-made Freshwater Purification Equipment

The Coating Workshop successfully developed self-made freshwater purification equipment to address the issue of excessive water salinity caused by salt tides, which led to coating rework. The equipment controls the salinity of produced water at a level far below the standard requirements. It effectively replaces the previously purchased expensive purified water, significantly reducing water costs in processes such as pipeline pressure testing.

At the same time, the equipment prevents water source pollution at the source, avoids repeated construction caused by water quality issues, and reduces the waste of resources such as paint and working hours. In addition, the self-produced freshwater can serve as an emergency supplement for domestic water use during salt tide periods, providing dual assurance for production and daily operations. Through technological innovation, the initiative has achieved the dual goals of cost reduction, efficiency improvement, and resource conservation.

Pollution Prevention and Control

Air Emissions

Key Measures

In response to the industry challenge of exhaust gas collection during ship coating operations, the Company has innovatively adopted a new model combining front-end adsorption and endof-pipe treatment. The Company has developed VOCs adsorption equipment and constructed RTO facilities for terminal treatment of VOCs pollution exhaust gas at the terminal, continuously reducing VOCs emissions year by year. In 2025, the Company newly manufactured five sets of VOCs adsorption equipment, bringing the total number to thirtyseven sets.

The Company independently developed paint mixing rooms for coating operations, equipped with activated carbon adsorption devices to reduce fugitive VOCs emissions generated from open-air paint mixing activities. In 2025, the Company newly constructed five paint mixing rooms, bringing the total number to fifty-eight sets.

Modification of the Exhaust System of Elevated Vehicles

The Asset Management Department carried out modifications on the engines of twenty-five elevated vehicles. The modifications adopted China Stage IV and above engines, optimized the exhaust systems, installed diesel particulate filters (DPF), and added lower control box limit alarm indicator lights, sensors, and instruments. After the modification, the elevated vehicle engines operated smoothly with complete functions, and exhaust smoke emissions were significantly reduced.

Before Modification

After Modification

Electrostatic Spraying Technology Supporting the Development of a Green Factory

For the five-year docking survey project of the Livorno vessel, COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. innovatively applied ship hull electrostatic spraying technology at Putuo Mountain Dock. This process utilizes the adsorption principle of a high-voltage electrostatic field, significantly improving paint adhesion efficiency, helping reduce material losses caused by paint mist dispersion, and reducing the emission intensity of volatile organic compounds (VOCs) to a certain extent.

Wastewater

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. adheres to the principle of combining source control with systematic management, continuously improves the wastewater collection and treatment system within the plant area, ensures that all types of wastewater are fully collected and discharged in compliance with standards, and comprehensively strengthens water environment protection.

Dock Wastewater Collection

The Company has achieved effective collection of hull rust removal wastewater. After treatment and filtration to meet discharge standards, the wastewater is discharged through the municipal pipeline network, ensuring that all production wastewater is collected.

Initial Rainwater Collection

The terminal has established an initial rainwater collection system to prevent pollutants from entering rivers and seas with rainwater. The drainage pipeline network within the plant area has comprehensive rainwater and wastewater separation capabilities and e f f i c i e n t t r a n s p o r t a t i o n performance.

Domestic Sewage Treatment

The Company has established a professional domestic sewage treatment station to centrally treat domestic sewage generated within the plant area. After meeting discharge standards, t h e t r e a t e d w a st e w a t e r i s d i s c h a r g e d t h r o u g h t h e municipal pipeline network.

Waste Management

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. strictly complies with the Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and relevant regulatory requirements. Adhering to the principles of “reduction, resource utilization, and harmless treatment,” the Company has established and improved a full life-cycle waste management system. The Company implements classified and graded waste management, clarifies the classification criteria and disposal pathways for general industrial solid waste and hazardous waste, and ensures that all types of waste are managed in a lawful, compliant, safe, and controllable manner.

In 2025, the Company successfully passed the “Waste-Free Factory” assessment in Chongming District and was selected into the “Waste-Free Cell Database,” marking a further improvement in its waste management capabilities.

“无废细胞"公布

该单位符台上海市“无废城市建设评估要求，现予以公布。单位名称：上海中远海运重工有限公司
细胞类型：无废工厂
细胞位置：上海中远海运重工有限公司

Waste-Free Factory

General Industrial Solid Waste Management

Source Control

The Company has scientifically divided the functional areas of upstream and downstream solid waste storage sites, implemented dry and wet separation, and effectively reduced the weight of general solid waste.

The Company utilizes an intelligent logistics and warehousing system to manage the transfer and record registration of non-ferrous metals, and has incorporated steel plate storage areas into enclosed management.

Resource Utilization

The Company implements comprehensive classification and separate disposal, storing and handling heavy waste, light waste, and new waste separately.

Special scrap steel, including anchors, anchor chains, old cylinder liners, and tail shafts, is sorted and stored separately. The “Circular Treasure” platform is used for public auctions to improve disposal value and resource reuse value.

Hazardous Waste Management

The Company strictly implements the hazardous waste operation permit management system. All hazardous waste must be collected, stored, utilized, or disposed of by qualified entities holding the relevant licenses. Entrusting hazardous waste to unlicensed organizations or individuals is strictly prohibited.

“Code-free Tooling” Modular Solution

To address the challenges of high energy consumption and solid waste accumulation caused by repeated welding and removal in traditional pad plate assembly processes, the company has innovatively implemented the “Code-free Tooling” modular replacement solution. Through mechanical rapid positioning technology, this solution completely eliminates the use of disposable pad plates and achieves significant waste reduction at the source. The annual usage of pad plates has decreased significantly for two consecutive years.

This initiative has not only significantly reduced direct material costs but also effectively eliminated a large amount of potential steel waste and the environmental burden associated with subsequent treatment, successfully transforming “end-of-pipe treatment” into “source prevention.”

Noise

To effectively reduce noise impacts at the plant boundary, the company has implemented noise reduction improvements for key equipment, including cooling towers in the air compressor station and ventilation fans. The company has adopted shore power substitution to reduce vessel-generated noise and continuously improved the acoustic environmental quality of the plant area.

Air Compressor Soundproof Barrier

Ecological Co-prosperity

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. actively fulfills its ecological protection responsibilities and attaches great importance to biodiversity conservation. The company strictly complies with laws and regulations related to the ecological environment, implements ecological protection measures throughout the entire process of production and operations, and minimizes impacts on the surrounding natural ecosystems. At the same time, the company actively carries out biodiversity awareness campaigns and public welfare activities, safeguarding ecological balance through practical actions and promoting harmonious coexistence between the company and the natural environment.

Ecological Restoration During the Relocation, Positioning, and Modification Project of the “Baiyunshan” Floating Dock

During the relocation and modification project of the “Baiyunshan” floating dock, COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. actively carried out ecological restoration efforts in the National Aquatic Germplasm Resources Conservation Area for Coilia nasus in the Yangtze River. The company conducted comprehensive monitoring of the ecological environment and aquatic biological resources in the project waters and organized aquatic

species release activities. A total of 128,700 white shrimp (Exopalaemon carinicauda) and 10,098 Coilia nasus were released, contributing to the protection of biodiversity in the Yangtze River waters through practical actions.

Embankment Cleaning Activity

In 2025, the company carried out various ecological protection publicity and education activities under the theme of “Understanding Conservation Areas and Initiating Ecological Protection”, promoting broader participation from society in ecological conservation efforts.

Themed Publicity and Education Speech at Chongming Yu’an Middle School

Community Publicity and Education: Distributed the Yangtze River Estuary Ecological Protection Handbook and environmental protection items, and established an “Ecological Commitment” signature wall.

Organized volunteers to visit the fish specimen museum

03

People-Oriented Approach Creating a Better Society Together

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. adheres to a people-oriented approach, protects employees’ rights and interests in accordance with the law, facilitates career development pathways, and creates a fair and supportive working environment. The company continuously improves its safety management system, strengthens safety training, and is committed to safeguarding employee safety. The company actively fulfills its social responsibilities and works together with all stakeholders to create a better future.

Talent Development and Cultivation 65
Employee Rights and Interests 71
Occupational Health and Safety 77
Social Contribution 84

Talent Development and Cultivation

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. strictly complies with the Labor Law of the People’s Republic of China and relevant laws and regulations. The company adheres to lawful and compliant employment practices, enters into labor contracts with all employees in accordance with the law, and has established sound systems for labor management, salary distribution, social insurance, and welfare protection to effectively safeguard employees’ basic rights and interests.

Employee Employment

The company firmly opposes all forms of discrimination and forced labor, adheres to the principles of voluntary and equal employment, and has formulated relevant policies and regulations, including the Regulations on the Management of Prohibition of Forced Labor, Regulations on the Management of Child Labor Remediation, Regulations on Anti-Harassment and Abuse Management, and Regulations on the Management of Prohibition of Discrimination, Forced Labor, and the Use of Prison Labor and Bonded Labor. The company is committed to creating a fair, equitable, and inclusive workplace environment, enabling every employee to realize their value through respect and equality.

Key Performance Indicators

Labor Contract Signing Rate 100%

Total Number of Employees 975

Number of Newly Hired Employees 44

Employee Turnover Rate 1 . 2 3 %

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. implements the “Targeted Talent Recruitment Plan”, focusing on core professional fields such as ship and offshore engineering, electrical automation, and digitalization, while expanding both campus recruitment and social recruitment channels. The company promotes the “Special Program for High-Level Talent Introduction” and provides support including residence registration, housing, and research-related resources.

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. Supported East-West Cooperation and Received Government Recognition

As a state-owned enterprise, COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. actively fulfills its social responsibilities and regards talent support as an important approach to deepening EastWest cooperation. In 2025, the company visited western cities including Chengdu, Xi’an, and Xianyang, and carried out campus recruitment and presentation activities at universities and colleges such as Sichuan University, Southwest Jiaotong University, Northwestern Polytechnical University, Xidian University, and Shaanxi Railway Engineering Vocational and Technical College.

The company precisely matched talent demands in fields such as ship
engineering and mechanical manufacturing, providing high-quality
employment opportunities for students in western regions. Through
talent recruitment, the company built a bridge for Shanghai-West cooperation, supporting talent development and industrial revitalization in western regions. These efforts received government recognition.

50 outsourced training programs and 103 internal training programs were conducted throughout the year, with a completion rate of 100 %
A total of ^ { 4 3 , 5 0 0 } training participants were recorded, with an internal training coverage rate of 100 % .

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. focuses on the development of the ^ { 6 6 } 4 { + } 2 ^ { 3 3 } talent system, centering on four key talent teams in marketing, production management, technology research and development, and digital intelligence technology. Leveraging the three branded training programs of “Zhujian”,“Lijian”, and “Liangjian”, the company has comprehensively implemented the “Yujian Project”. Through a three-stage progressive development model of “foundation–enhancement–practice”, the company has systematically upgraded its talent development system.

The company has integrated the “Liangjian Endeavor” culture throughout all stages of campus recruitment and incorporated it as a mandatory course in new employee onboarding training. Through the dual-driven approach of“cultural inheritance ^ + technological innovation”, the company cultivates interdisciplinary talents who possess both a deep understanding of corporate culture and digital thinking capabilities.

“4+2”talent system Four key talent teams 1 Production Technology research Digital intelligence Marketing management and development technology “Yujian Project” Development model:“foundation–enhancement– three branded training programs practice”progressive development “Zhujian” “Lijian” “Liangjian” “Foundation” “Enhancement” “Practice”

L i a n g j i a n C l a s s (Middle and Senior Management)

Focusing on enhancing the capabilities of middle and senior management personnel, the company conducted two sessions of the Liangjian Class in 2025.

The First Liangjian Class (August 2025):

Through courses such as MTP Management Simulation and Strategic Thinking and Scientific Management, the program empowered participants with management capabilities. The company organized on-site learning activities at Nantong Innovation Zone, Zhang Jian’s Former Residence, and the Party Conduct and Integrity Education Base. The program focused on achieving three breakthroughs: breaking down “departmental barriers”, mastering quantitative decision-making tools, and strengthening the mission of serving national industrial development. It aimed to cultivate management professionals with a global perspective to support the company’s green and intelligent transformation.

The Second Liangjian Class (September 2025):

This session was conducted alongside training for Party branch secretaries. Building on the strengths of the first session, the company optimized the curriculum system and added courses such as Innovative Thinking and Innovation Management and Stress Management and Positive Mindset Development. Participants watched the 80th Anniversary Victory Parade commemorating the victory of the War of Resistance Against Japanese Aggression to enhance their sense of mission and responsibility. The program also organized achievement presentations on topics including the implementation of innovative thinking, development of younger employees, and the “15th Five-Year Plan”, precisely aligning with the company’s green and intelligent transformation needs.

Lijian Class (Young Core Employees)

Focusing on the growth needs of young core employees and positioned around “strengthening capabilities”, the Lijian Class brings together employees from the “Yangfan Talent Pool”, outstanding young employees, and key business talents. Through immersive training and development, the program comprehensively enhances participants’ overall capabilities.

The program offers specialized courses including Cultivation of Young Cadres, Innovative Thinking and Innovation Management, MTP Management Simulation Course – Work Management, and Stress Management and Positive Mindset Development. Participants are organized to conduct practical learning activities at Nantong Museum, Zhang Jian’s Former Residence, the Party Conduct and Integrity Education Base, and the Safety Experience Center. Combined with quality development activities and group discussions, the program promotes the integration of learning and practical application.

Zhujian Class (Frontline Employees)

Focusing on improving frontline management capabilities, the Zhujian Class continuously optimizes the integrated “classic ^ + innovation ^ + practice” curriculum system, ensuring that training content closely aligns with production practices and meets frontline needs.

The program retains core courses such as 5S Workplace Management and Analysis and Solution of On-site Quality Issues, while optimizing case studies to better match production requirements. Interactive sessions, including Q&A, case debates, and group competitions, have been added to the classroom to promote learning through competition and stimulate management thinking and team collaboration.

Based on visits to the Jiangnan Shipyard History Museum and intelligent manufacturing workshops, the program introduced simulated on-site management practical exercises. Participants solve real-world problems in recreated scenarios, achieving effective integration of learning and application.

The company has deeply implemented the Implementation Plan for the Dual Mentorship Program, strengthening the core role of the mentorship system in talent development. Mentors and instructors are required to provide new employees with technical guidance and career development support based on “high standards and strict requirements”.

Focusing on cutting-edge fields such as green retrofitting and intelligent ship repair, the company has actively introduced and cultivated leading technical experts and project leaders. Through the establishment of modern industrial bases, immersive skills training enabled by digital twins and VR/AR technologies, the implementation of new apprenticeship programs, and the improvement of skills certification and incentive mechanisms, the company has systematically addressed the shortage of frontline skilled talent and built a highly qualified workforce with a balanced structure, outstanding expertise, and strong vitality.

2025

Mentorship and apprenticeship programs achieved 100 % coverage of young employees in key positions.

Employee Rights and Interests

The company strictly complies with the Labor Law of the People’s Republic of China and relevant laws and regulations. Based on its operational conditions, the company has established and improved a comprehensive institutional framework covering labor employment, salary distribution, social insurance, employee welfare, and social security. The company pays social insurance and housing provident fund contributions in full and as required, effectively safeguards employees rights to statutory leave, including home visit leave, marriage and bereavement leave, maternity leave, and other legally entitled benefits, and comprehensively protects employees’ labor rights and interests.

Basic Benefits Other Benefits
Six Insurances and Employee Canteen Critical Illness Subsidy for Employees’Family Members Three Funds Festival Care Benefits Marriage, Childbirth, and Retirement Subsidies
Paid Annual Leave Birthday Care Benefits Meal Allowance
Health Check-ups High-Temperature Allowance
Employee Dormitories Points-Based Subsidy Children’s School Enrollment Subsidy Talent Subsidy
Career Development and Promotion In-Service Education Advancement Subsidy

Promotion Pathways

The company has established diversified career development pathways for employees, improved the dual-track career development system of “management ^ + technology”, encouraged employees to pursue further education and develop professional capabilities through their positions, strengthened the mentorship and apprenticeship mechanism, and accelerated the growth of young talents.

In terms of talent selection and appointment, the company has implemented a mechanism combining “position competition ^ + performance evaluation”, established a digital talent resource platform to dynamically monitor job-person matching and performance output, and introduced third-party assessment tools to scientifically evaluate candidates from dimensions including professional competence, stress resilience, and alignment with corporate values, ensuring a fair and impartial talent selection process.

Reserve Talent Development

The company implements “dynamic management of the talent reserve pool” to continuously develop successors for key positions, including middle management, technical, and project management roles. The company promotes a “crossfunctional rotation ^ + temporary assignment” development model and leverages major projects such as FPSO, module projects, and dual-fuel retrofitting projects to conduct practical “project ^ + talent” development, focusing on identifying and cultivating interdisciplinary talents.

At the same time, the company has established a fault-tolerance and correction mechanism to encourage employees to pursue innovative breakthroughs in high-value business platforms and cutting-edge technology research and development, enabling all types of talents to maximize their capabilities and realize their potential.

Employee Well-being

The company has always adhered to a people-oriented approach and implemented the “Heartwarming Cohesion Project”, building a comprehensive and diversified employee welfare and support system to effectively enhance employees’ sense of fulfillment, happiness, and belonging.

Focusing on employees’ spiritual and cultural needs, the company organizes various cultural activities, including red education programs, skills competitions, and family open days, to enrich employees’ leisure life, strengthen team cohesion, and enhance employees’ sense of identification and commitment to the company.

The company has carried out regular employee care initiatives. During the summer “Cooling Support” campaign, the company provided care and support to more than 800 employee participants. Daily care activities, including support for employees facing illness, newly married employees, and other special circumstances, reached a total of 168 employee participants. Birthday care was provided to 898 active employees and 391 retired employees.

The company has improved its health protection mechanism by inviting experts from the Xinhua Hospital Changxing Branch to deliver health seminars and establishing a 24-hour EAP psychological counseling hotline to comprehensively support employees physical and mental well-being.

To address employees’ concerns, the company actively coordinated solutions for employees’ children’s school enrollment issues, taking practical measures to provide support and help employees resolve real-life difficulties.

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. Employee Canteen Received Two Honors

The employee canteen of COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has received two prestigious recognitions, including the “Shanghai Green Restaurant Demonstration Unit” and the “Five-A Enterprise for Standardized On-site Management in the Catering Industry (6T Practices)”, in recognition of its outstanding performance in areas such as food safety, low-carbon and environmentally friendly operations, and integritybased management.

Winter Warmth Support Activity

Dragon Boat Festival Activity

Women's Care Initiative

International Women’s Day Activity

Baking Activity

Women's Care Initiative

Women’s Health Seminar

“Goddess” Image Photography Activity

The Electrical Detailed Design Team of the Technology R&D Center of COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. was recognized as the 2025 National “March 8th Red-Banner Collective”

The team was recognized as the Shanghai “March 8th Red-Banner Collective” in August 2025 and awarded the title of National “March 8th Red-Banner Collective” in February 2026. Comprising 28 members, the team has a female representation of over 6 0 %

The team members have been deeply engaged in ship and offshore engineering electrical design, overcoming foreign technological barriers, advancing research on green and low-carbon vessel retrofitting technologies, and achieving numerous innovative results. Through dedication and craftsmanship, the team has demonstrated the spirit of women’s excellence and commitment in the new era.

“Families with Exam Candidates” Blessing Activity

To further care for employees, the labor union of COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. carried out the 2025 “Families with Exam Candidates” Blessing Activity, providing care and encouragement to employee families whose children participated in the national college entrance examination and high school entrance examination.

The activity reflects the company’s people-oriented management philosophy and demonstrates its commitment to sharing responsibility with employees’ families and supporting the growth of employees’ children. It has helped strengthen employees’ families’ sense of recognition and pride in the company.

Democratic Management

The company strictly complies with the Trade Union Law of the People’s Republic of China and other relevant laws and regulations, establishes a trade union organization in accordance with legal requirements, improves the employee representative assembly system, safeguards employees’ rights to democratic management and democratic supervision, and effectively protects employees’ legitimate rights and interests.

Relying on the trade union platform, the company launched the initiative“Contribute Suggestions for the Company’s‘15th Five-Year Plan’ Development”, widely collecting development suggestions from all employees. The activity distributed 826 suggestion cards and collected 622 valid suggestions. The suggestions focused on key areas including the “One Core, Two Wings” and “One Core, Two Drivers” development strategies, technological innovation, digital and intelligent transformation, green development, and team building. The initiative fully integrated employees’ collective wisdom and promoted joint development and mutual improvement between the company and its employees.

“Youth Gathering for Listening * * Integration and Co-development” Themed Tea Forum

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. fully leveraged the role of the Human Resources Department/Organization Department and the Youth League Committee as a “home for employees”. In November 2024, the company organized the themed tea forum “Youth Gathering for Listening · Integration and Co-development”, inviting more than 50 newly graduated employees who joined the company between 2019 and 2023.

The activity focused on four key topics: challenges encountered at work, visions for company development, employee growth needs, and skills enhancement training. Through on-site discussions and anonymous voting, the company collected 114 suggestions and opinions. The Human Resources Department established a list of issues and continuously followed up on their resolution to ensure effective implementation.

The tea forum built a communication bridge between the company and young employees, demonstrating the company’s attention to and care for young talent development, while providing strong support for the growth and career development of young professionals.

Occupational Health and Safety

The company has always upheld the principle that “employees’ life and health come above all else”. With a focus on safeguarding employee safety and health and ensuring stable production operations, the company continuously improves the effectiveness of safety management and strives to achieve the “Three Zeros” goals for work safety.

The company builds a strong safety defense line through responsibility and protects employee well-being through care. By promoting positive interaction between safety management and high-quality development, the company has established a high-standard occupational health and safety management system, providing a solid safety foundation for sustainable and high-quality corporate development.

Safety Management

System Enhancement

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has continuously strengthened the foundation of safety management. Throughout the year, the company added and updated 12 HSSE-related laws and regulations and conducted compliance evaluations for each item. Based on new regulatory requirements, organizational adjustments, and review recommendations from meetings and discussions, the company revised and improved 53 internal management procedures.

In response to recent audit feedback from international shipowner c u s t o m e r s , t h e c o m p a n y h a s s y ste m at i ca l l y u p g ra d e d a n d optimized all HSSE management s y s t e m d o c u m e n t s , f u r t h e r enhancing the effectiveness and applicability of the management system.

The company has successfully been recognized as a National Level II Enterprise for Work Safety Standardization.

Occupational Health and Safety Management System Certificate

Strengthening Safety Responsibilities Across All Employees and Partners：

100% of departments have signed the Work Safety Responsibility Agreement with the company.
100% of employees have signed the Job Safety Commitment Letter.
100% of subcontractors have signed the Safety and Fire Prevention Commitment Letter.

Risk Management

In 2025, the company conducted a comprehensive re-identification and reassessment of hazards across all operational areas. Focusing on key processes such as LNG displacement and bunkering operations, the company identified seven additional hazards and implemented targeted control measures accordingly, effectively enhancing safety risk management capabilities during the repair and retrofitting of LNG and dual-fuel vessels.

At the same time, the company revised and issued the Shanghai Heavy Industry Criteria List for Determining Major Accident Hazards and Critical Defects (2025 Edition), which covers 194 assessment criteria. By adhering to the principles of immediate rectification and dynamic elimination of hazards, the company has promoted the standardization and normalization of hazard identification, inspection, and corrective management.

2025

the company conducted 206 on-site hazard inspections covering various operational areas and identified a total of 3,935 potential hazards.

Safety Initiatives

Safety Special Campaigns
Deep Integration of Party The Safety Supervision Department guided various departments to carry out “Party Building and Safety Building + ^ { , , , } ” initiatives. Throughout the year, the company collected 65 safety improvement cases, selected 20 outstanding cases, and provided recognition and Improvement promotion to encourage broader application of safety improvement practices. “Three Violations The company carried out the “Zero-Violation Team” evaluation, with 54 teams Prevention” and receiving honorary recognition. In addition, 30 outstanding employees were selected for “Zero-Violation” Team their achievements in preventing unsafe behaviors. The positive incentive mechanism Development has continuously improved teams’ capabilities in autonomous safety management. Three-Year Action Plan The company formulated the 2024–2026 Implementation Plan, established a for Fundamental Safety leadership team, and focused on hazard identification and rectification at construction Improvement sites, ensuring the orderly advancement of all safety improvement initiatives. The company developed a dedicated action plan, analyzed historical violation data, Special Campaign for identified recurring violation scenarios, established targeted hazard rectification objectives, and reported improvement performance on a monthly basis. Combined
High-Frequency Violation with the “Zero-Violation Team” and “Three Violations Prevention” recognition Control programs, the company rewarded advanced teams and individuals with strong autonomous safety management performance. The company launched the “Thunder Action” Safety Campaign in August, establishing leadership and working teams, and developed one overall action plan ^ + nine special
Safety Production Thunder action plans. Through weekly review and supervision meetings, the company promoted continuous implementation. Major hazards were dynamically eliminated. Action Campaign In the second half of 2025, the total number of accidents decreased by 2 5 % year-onyear, achieving the goals of “zero serious injuries and zero fatalities”. The training coverage rate for outsourced personnel reached 1 0 0 % . Water Operations: A dedicated task force was established to conduct 17 inspections and rectify 184 issues. The company reviewed 20 equipment-related items and 15 “One Matter” Full-Chain operational items, establishing an integrated “equipment-operation-system” Special Improvement control mechanism, with all employees completing relevant special training. Inert Gas Management: The company comprehensively reviewed the application Campaign scenarios and risks associated with argon and nitrogen use, and implemented control measures for operations such as argon arc welding and nitrogen pressure displacement, ensuring safe and controllable operations.

Production Safety

FPSO Retrofitting Project of “AGOGO” Vessel Achieved One Million Safe Man-hours

During the FPSO retrofitting project of the “AGOGO” vessel, COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has consistently upheld the principles of “people-oriented, life first, safety first, and scientific management.” Through rigorous and refined onsite safety control, the project successfully achieved the milestone of one million safe man-hours without lost-time injuries in January 2025.

Since the commencement of the project, the

company has strengthened comprehensive safety supervision throughout the entire project lifecycle and closely collaborated with the YINSON project team to implement high-standard safety requirements. Outstanding teams and individuals have been recognized and rewarded, continuously reinforcing the safety foundation and ensuring safe production throughout project execution.

Employee Safety

Joint Emergency Drill on “Fire Prevention, Explosion Prevention, and Injury Prevention”

To respond to the requirements of the 24th National “Work Safety Month” and the Three-Year Action Plan for Fundamental Safety Improvement, the headquarters of COSCO SHIPPING Group, together with the Heavy Industry headquarters and COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd., jointly conducted the themed emergency drill “Fire Prevention, Explosion Prevention, and Injury Prevention” on June 12.

The drill was designed based on lessons learned from historical safety incidents and closely aligned with the newly revised Work Safety Supervision and Management Measures. It established a full-chain emergency scenario covering “fire emergency occurrence $$ information reporting $$ emergency response and handling” emphasizing the principles of “early detection, early reporting, and early response.”

The exercise standardized key procedures including information reporting, emergency response, and resource allocation, addressed historical weaknesses, and drove continuous optimization of emergency management processes.

Skill Enhancement

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. Firefighting Team Achieved First and Second Place

In 2025, the Shanghai Emergency Fire Rescue Waterborne Detachment organized a firefighting skills training competition. Firefighters from COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. achieved first and second place in the “Three Belts and One Nozzle” competition event.

As the “Red Guardians” safeguarding the company’s safe production operations, the firefighting team of COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has consistently upheld the philosophy of “training through real scenarios and improving capabilities through competition.” Focusing on the emergency rescue characteristics of ships and offshore engineering projects, the team continuously strengthens professional skills and builds strong capabilities to respond effectively to emergencies.

Safety Training

2025

First Aid Personnel Training:

•The company organized 4 sessions of primary first aid certification training, with more than 150 on-site management personnel and team leaders participating.

New Employee and Outsourced Personnel Safety Training:

•A total of 21,955 participants completed site entry safety training, including 5,743 long-term outsourced workers, 7,446 temporary outsourced workers, and 8,766 shipowner-related outsourced personnel.

2025

Key Specialized Safety Training Programs:

•Violation Re-education Training: Conducted 24 sessions, covering 1,527 participants.
•Work Safety Team Leader Training: Conducted 12 sessions, covering 830 participants.
•Annual Safety Refresher Education: 626 employees participated in knowledge assessments.
•Confined Space Operation Training: Conducted ^ 3 certified approval training sessions covering 447 participants; 889 safety supervisors and 4,339operators completed relevant training.
•Department-Specific Safety Training: Conducted 12 sessions, covering 1,020 participants.

The Safety Experience Center has entered the commissioning phase, covering four major functional areas: safety awareness, firefighting, special operation practice, and emergency response. The center helps employees enhance risk awareness and improve emergency response capabilities through immersive training.

Safety Experience Center

The company collaborated with the Chongming District Work Safety A ssociation to organize specialized training for enterprise safety technical personnel. The training aimed to enhance on-site safety management capabilities and strengthen standardized hazardous chemical operations as well as emergency response capabilities for flood prevention and typhoon preparedness.

During the training, enterprise instructors drew on

Special Training for Enterprise Safety Technical Personnel

extensive practical experience in typhoon and flood control operations, providing in-depth guidance on typhoon prevention measures, emergency resource allocation, and on-site reinforcement techniques. Through analysis of typical accident cases, the training systematically explained key risk prevention and control measures for hazardous chemical management, further improving employees’ safety management awareness and emergency response capabilities.

AR “Smart Eyes” for Hazard Identification and Interactive Quiz-Based Learning — COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. Innovatively Conducted Fire Safety Experience Activity

Focusing on the theme of the Fire Prevention Publicity Month — “Fire Safety for All, Life Comes First,” COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. organized an immersive fire safety experience activity at the Safety Experience Center.

The activity featured two interactive zones: “AR Fire Hazard Identification” and “Safety Knowledge Challenge.” Through AR equipment, employees simulated inspections of electrical safety risks and flammable material hazards in production areas, dormitories, and other scenarios, gaining a more intuitive understanding of potential hidden risks. The knowledge competition covered topics such as fire prevention practices, firefighting procedures, and emergency evacuation skills, combining education with entertainment.

Through the integrated approach of “immersive experience ^ + knowledge competition,” the activity encouraged employees to shift from “passive listening” to “active learning and hands-on practice,” effectively improving fire safety awareness, knowledge coverage, and practical emergency response capabilities.

Technology-Enabled Safety Management

The company actively promotes the digital transformation and upgrading of safety management. By leveraging digital tools, the company has strengthened monitoring and control of high-risk operations, including work at height, confined space operations, and hot work activities.

Through the application of technologies such as intelligent video surveillance systems, the company has enhanced its ability to achieve “early identification, early warning, and early response” for potential risks and hazards, continuously improving the efficiency and effectiveness of safety risk prevention and control.

The Unsafe Behavior Monitoring System at COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. Officially Launched

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has launched an unsafe behavior monitoring system across its plant area, building a digital and intelligent safety management system based on the principles of “intelligent identification, precise control, and closed-loop management.”

The Unsafe Behavior Monitoring System at COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. Officially Launched

The system focuses on frequently occurring unsafe behaviors, including using mobile phones while walking, failing to wear safety helmets, not using pedestrian crossings, and reverse driving of non-motor vehicles. Through intelligent technologies, the system can capture unsafe behaviors in real time, accurately identify personnel involved, and automatically issue rectification notifications, significantly improving safety supervision efficiency.

Meanwhile, the system utilizes data analysis to establish a closed-loop safety management process, accurately identify weak points, and optimize control measures in a targeted manner. This initiative promotes a shift in safety management from experience-driven management to data-driven management, further strengthening the safety production foundation across the plant.

Social Contribution

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has always aligned itself with national development priorities and fulfilled its strategic mission through practical actions. Focusing on the national strategies of building a manufacturing powerhouse, maritime powerhouse, and transportation powerhouse, the company is committed to breakthroughs in core technologies, enhancement of market competitiveness, and improvement of development quality.

By deeply engaging in the shipbuilding, ship repair, and offshore engineering equipment manufacturing sectors, the company contributes to China’s advancement toward becoming a global leader in ship repair and construction and a leading nation in offshore engineering equipment manufacturing. Through industrial empowerment, the company demonstrates the strength of Chinese intelligent manufacturing and provides solid support for the implementation of key national strategies.

The company actively fulfills its social responsibilities by strengthening collaboration with local governments and communities, enhancing connections between enterprises and local stakeholders, and building joint efforts for community development. Upholding its commitment to social responsibility, the company continues to serve communities through practical initiatives and has established a responsible and caring corporate image.

Key Initiatives and Highlights

Promoting Local Employment and Community Integration

Supporting Consumption Assistance and Rural Revitalization

Strengthening Joint Development between Youth Organizations, Enterprises, and Communities

The company prioritizes the recruitment of local residents, r e g u l a r l y o r g a n i z e s o p e n p l a n t d a y s a n d m a r i t i m e knowledge outreach activities, a n d a p p r o p r i a t e l y o p e n s ports and facilities under safe co n d i t i o n s . T h e co m pa n y a l s o s u p p o r ts co m m u n i t y emergency response and public welfare initiatives, fostering a harmonious relationship between the enterprise and local communities.

The company actively participated in the Third “Central State-Owned Enterprises Consumption Assistance and Rural Revitalization Week”, purchasing more than 1,600 poverty alleviation and assistance products. The company appointed one middlelevel manager as the First Secretary of the Party Branch of Huapiao Village, Chenjiazhen Town, Chongming District, and assigned eight young key employees as “Second Secretaries” in village and community organizations, contributing to grassroots governance and rural development.

The company’s Youth League Committee collaborated with local Youth League organizations, schools, and communities to carr y out various initiatives, i n c l u d i n g “ M i c r o - W i s h ” donation activities, science p u b l i c w e l fa r e c l a s s e s , Le i Feng volunteer services, and enterprise-community cultural activities, demonstrating the company’s commitment to fulfilling social responsibility through concrete actions.

Summer Care Program at Changxing Primary School

闲来吾市爱满春日”纪念学雷锋系列志愿服务活动（三周年共青团上海中远海运重工有限公司委员会

Jointly Organized the Third “Leisure Market, Love in
Spring” Lei Feng Volunteer Service Event with 18
Community and Enterprise Partners

Volunteer Service in the Community

The Youth League Committee of COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. organized young League members and volunteers to carry out a community fire safety inspection campaign in Lüdi Changxing Jiayuan Community.

Volunteers conducted evening inspections of residential buildings, checking access corridors, utility meter rooms, and the inspection status of firefighting equipment. They identified potential fire hazards, ensured emergency exits remained unobstructed, and verified that emergency lighting systems were functioning properly, helping strengthen the community's fire safety defenses.

For households storing miscellaneous items or flammable materials in utility meter rooms, volunteers conducted door-to-door visits to encourage timely rectification. They also patiently shared fire safety knowledge with residents, including the proper use of fire extinguishers and fire hoses, while raising awareness of everyday fire prevention practices.

Neighborhood Engagement

“Relaxed Lifestyle Festival” Community Event

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. actively integrates into community development. Together with the Changxing Town Youth League Committee, the company co-organized the “Relaxed Lifestyle Festival” at the Employee Talent Apartment Activity Center.

The event featured a variety of interactive games, including “Ring Toss for Good Luck” and “Rolling Bowling” attracting enthusiastic participation from local residents. Young volunteers from the company provided warm and attentive support throughout the event, bringing energy and vitality to the community.

The festival serves as a vivid example of government–enterprise collaboration and community engagement. Looking ahead, the company will continue to work closely with local partners to foster harmonious and vibrant communities.

04

Craftsmanship in Service· Empowering Global Navigation

Rooted in lean management, driven by innovation, guided by quality, and connected through service, COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has taken R&D innovation as a key driver, strengthened core capabilities through multiple initiatives, and built a solid foundation for enhancing the company’s core competitiveness. Meanwhile, guided by customer needs, the company provides efficient, reliable, and convenient service experiences, continuously improves customer satisfaction and trust, and works together with industry partners to build a mutually beneficial and win-win global shipping service ecosystem, injecting continuous momentum into China’s heavy industry advancement toward the deep sea and empowering global navigation.

Lean Management

2025

Average Vessel Turnaround Time 28.86 days

Average Docking Period 131.22 hours,reduced by 4.81 hours compared with the previous year

Vessel Schedule Management

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has adopted the approach of “precise planning, dynamic adjustment, and coordinated execution”as the core of vessel schedule management. Focusing on the delivery milestones of ship repair and retrofitting projects, the company has implemented a reverse scheduling mechanism, broken down work packages, and established a full-process schedule control system.

Through efficient coordination and proactive response to unexpected additional work items and project scope adjustments during construction, the company has achieved precise control of vessel schedules and early delivery fulfillment, ensuring efficient fleet turnover and operational capacity utilization for the Group.

Key Initiatives

Before project commencement, the company has established professional project management teams to complete vessel-wide e n g i n e e r i n g s u r ve y s . B a s e d o n d e l i v e r y m i l e st o n e s , t h e company has developed detailed construction plans, clarified the timelines and responsibilities for each stage, and ensured effective project execution.

During the construction process, the company has established a t h r e e - p a r t y j o i n t s u r v e y m e c h a n i s m to d y n a m i ca l l y respond to the requirements of shipowners and classification societies. For unexpected projects, t h e co m pa n y h a s p ro m pt l y adjusted construction plans to achieve seamless coordination among different work processes.

The company has implemented t h e “ Ta rget D e co m p o s i t i o n Method” by breaking down overall construction objectives into smaller targets for each stage, accurately controlling each construction milestone, and integrating internal and external resources to achieve coordinated efforts among multiple types of work and departments.

Docking Period Management

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has focused on “shortening docking periods, improving dock efficiency, and integrating resources” as the core objectives. Focusing on the entire process of dock operations, the company has maximized the reduction of vessel time in dock, improved dock turnover efficiency, and reduced safety risks during dock operations through measures such as equipment upgrades, process innovation, on-site management optimization, and process coordination, achieving refined and efficient docking period management.

Through equipment upgrades and the application of digital and intelligent technologies, the company has achieved multidimensional improvements in lifting and transportation capabilities, production efficiency, safety and environmental protection, and quality management.

Key Initiatives

The company has carried out the overall height enhancement of dock blocks at Emei Mountain Dock, with the successful completion of modifications to 777 dock blocks. The company has also added dedicated operation vehicles and optimized the dock lighting system, overcoming operational time and space constraints and achieving all-weather, highefficiency operations.

The company has promoted the application of intelligent equipment such as SPMTs and drones, replacing traditional low-efficiency operation methods and improving the efficiency of heavy component transportation, inspection, and testing processes.

The company has enhanced stationary layout management of dock pontoons, standardized equipment placement and resource allocation, achieved seamless coordination among different types of work and operational stages, and reduced waiting time between processes.

The company has established an emergency response mechanism for docking periods, enabling rapid resource allocation and multi-disciplinary collaboration in response to unexpected work requirements, minimizing the impact of unforeseen issues on docking periods.

Improving Efficiency through the Application of SPMTs

The company has innovatively introduced SelfPropelled Modular Transporters (SPMTs) in bulbous bow replacement and propeller engineering projects, replacing traditional rail-mounted hydraulic transport vehicles and innovating the logistics mode for heavy components, significantly shortening the docking period for similar projects.

During the bulbous bow replacement project of the “Mediterranean Gina” vessel, the company completed the entire construction process within 48 hours, shortening the lifting and assembly time by 24 hours compared with the traditional approach, while significantly reducing operational safety risks.

This technology can be widely applied to large-component maintenance scenarios, such as stern shaft bracket replacement and rudder system maintenance, effectively promoting the ship repair industry toward the“modular rapid repair era.” With the trend toward larger vessels and the continuous improvement of SPMT load capacity, its leading position in the ultra-large vessel retrofitting market will be further strengthened, providing core technical support for efficient and safe ship repair operations.

Intelligent Equipment Enhances Productivity

The company has introduced welding robots to address welding challenges through digital and intelligent empowerment, building intelligent manufacturing capabilities for ship repair and retrofitting

Through the application of welding robots, the company has effectively addressed challenges such as low efficiency and difficulties in ensuring welding quality.

Research and Development

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. regards technological innovation as a core driver of development. Relying on the Science and Technology Innovation Committee and the Technology R&D Center, the company has coordinated multiple departments to establish a systematic and platform-based innovation framework, transforming technological advantages into market and efficiency advantages and injecting momentum into high-quality development.

The company focuses on IMO environmental protection regulations and has concentrated on breakthroughs in key technologies, including LNG/methanol/ammonia fuel power retrofitting, carbon capture system integration, and life extension of high-end offshore engineering equipment. It has also continued to develop core areas such as digital simulation of module construction and EPC integration for new energy projects. Through collaborative innovation platforms integrating industry, academia, research, and application, the company has accelerated the transformation of achievements, developed technology solutions and process packages with independent intellectual property rights, and built a future-oriented technological competitive advantage.

2025

R&D Expenditure RMB 22,994.02 ten thousand

Platform Development

In 2025, the Technology R&D Center of COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. was recognized as an Enterprise Technology Center at both the Chongming District and Shanghai municipal levels.

The recognition of the Shanghai Enterprise Technology Center is a high-standard evaluation system established by Shanghai to strengthen the leading role of enterprises in technological innovation and improve the industrial technology innovation system. It aims to select and cultivate enterprises with significant innovation leadership and demonstration effects within their industries. This recognition not only acknowledges the company’s existing innovation capabilities and achievements but also encourages the company to continue conducting high-level R&D, improving its innovation system, and playing a leading role in the industry.

Recognition as Shanghai Enterprise Technology Center

Recognition as Chongming District Enterprise Technology Center of Shanghai

上海市企业技术中心ShanghaiCenterforEnterprise Technology上海市经济和信息化委员会 上海市财政局国家税务总局上海市税务局 上海海关

Key Research Projects

Newly Initiated Research Projects

《Development Technology of a Digital Simulation Heavy Industry Level Platform for Ship and Offshore Engineering of Methanol Dual-Fuel Tanks》 《Research on Key Equipment Selection and System Company Level Design for LNGC Retrofitting to FLNG》 《Research on the Application of LNG Reliquefaction Systems in LNGC Retrofitting》

Another 720,000-Barrel FSO AIP Certificate Obtained

The 720,000 BBLS FSO vessel type independently developed by COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has obtained the Approval in Principle (AIP) certificate from Bureau Veritas (BV), marking another major breakthrough by the company in the field of high-end offshore engineering equipment.

Based on the successful experience of the 450,000-barrel FSO, this vessel type has been optimized and upgraded, specifically customized for the Southeast Asian market, further enriching the FSO product portfolio. The development of the two FSO vessel types has improved the company’s offshore engineering product line, enabling coverage of oil and gas storage and transfer needs in multiple scenarios and effectively enhancing global market competitiveness.

The company has continuously increased investment in R&D and achieved a series of major breakthroughs in key core technology fields, receiving provincial and ministerial-level or above science and technology awards, with significantly enhanced industry influence.

Honor Moment:The project “Research and Demonstration Application of Key Technologies for MOSS Tank-Type LNGC Retrofitting to FSRU” has won the Second Prize of the Science and Technology Progress Award of the China Institute of Navigation.

Intellectual Property Protection and Standard Development

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. attaches great importance to intellectual property protection and technology standardization development. The company has established and improved a comprehensive management system covering the entire process of scientific research and innovation, strictly regulating intellectual property application, maintenance, and utilization in accordance with the Management Measures for Scientific Research Papers, Patents and Software Copyrights. The company has continuously strengthened patent planning, research paper management, and software copyright protection.

Meanwhile, the company actively participates in the development of national, industry, and group standards, deeply integrating technological innovation with standard development. Through institutional support for the transformation of innovation achievements and standards-driven advancement of industry technologies, the company continuously enhances its core competitiveness and industry influence.

Standard Development

The national standard Shipbuilding and Marine Structures — Mooring Winches, which the company participated in drafting, was released and came into effect on April 25, 2025.

T h e g r o u p s t a n d a r d G r e e n h o u s e G a s Quantification Methods and Requirements for Product Carbon Footprint — Container, which the company participated in drafting, was released and came into effect on April 17, 2025.

山

The company participated in the development of the national standard Ships and Marine Technology — Biological Test Methods for Screening Antifouling Coatings, promoting the standardization of antifouling coating testing methods and supporting the upgrading of technical specifications for green ships.

The company participated in the formulation of the group standard Design Requirements for Fuel Supply Systems of Methanol Dual-Fuel Retrofitting, aiming to standardize the application of ship methanol dual-fuel retrofitting technologies and improve the reliability and adaptability of retrofitting systems from the design stage.

FZ

2025

The company newly applied for 26 intellectual property rights, including 24 invention patents and ^ 2 software copyrights. The company obtained authorization for 12 patents, including 7 invention patents and 5 utility model patents, and published/accepted 14 academic papers.

By the end of 2025

The company had accumulated \mathtt { 1 5 } authorized invention patents, 33 utility model patents, and 12 software copyrights.

Industry-Academia-Research Collaboration

The company adheres to the concept of open innovation and has actively promoted industry-academia-research collaboration, establishing a technology innovation system with enterprises as the main body, market orientation as the guidance, and deep integration of industry, academia, and research.

The company has further advanced industry-academia-research cooperation and signed strategic agreements with universities and research institutions such as the Research Institute of Tsinghua University in Shenzhen and Huazhong University of Science and Technology.

Joint Development of “Intelligent Ship Bottom Painting Robot” with Shenzhen Tsinghua Research Institute

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. and the Research Institute of Tsinghua University in Shenzhen have jointly carried out the R&D of the “Intelligent Ship Bottom Painting Robot” project. Through AI visual recognition and automated path planning technologies, the project has improved painting efficiency, reduced paint consumption, completely avoided the risks of high-risk manual operations, and improved the working environment.

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. and Huazhong University of Science and Technology Conduct Exchange Activitiesa

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. and the School of Naval Architecture and Ocean Engineering of Huazhong University of Science and Technology have deepened industry-academia-research cooperation. Both parties have leveraged the strengths of theoretical research and engineering practice to achieve breakthroughs in key technologies such as offshore engineering equipment R&D and ultralarge floating dock analysis, promoting the transformation and application of multiple scientific research achievements.

The two parties have conducted in-depth exchanges on FPSO product upgrading, AI-based digital design, ship new energy retrofitting, and the establishment of doctoral workstations, building a "research–application" closed loop and supporting the high-quality development of the industry.

At present, both parties have jointly carried out the R&D of the Digital Simulation Platform for Ship and Offshore Engineering Equipment Structures Based on AI Technology, overcoming the bottlenecks of traditional simulation technologies. The project will significantly improve the efficiency and accuracy of simulation calculations for offshore engineering equipment and enhance work efficiency and quality.

Fostering an Innovation Culture

The company attaches great importance to the cultivation, development, and incentives of innovative talent. It has established and improved talent cultivation and development mechanisms and, based on employees’ professional backgrounds, technical expertise, and development potential, has formulated annual training plans and skills development objectives covering standardized learning, skills enhancement, software application, technology R&D, academic paper publication, and patent application.

The company has actively cultivated interdisciplinary talent by promoting cross-disciplinary learning among scientific and technological personnel in areas such as overall calculation, marine machinery equipment, piping, and ventilation, striving to build a team of versatile professionals with expertise in multiple disciplines.

s

Focusing on job requirements and cutting-edge technologies, the company has systematically carried out professional training and technical seminars covering key areas such as piping technology, methanol dual-fuel system principles, production design nesting, and patent mining, comprehensively improving the professional skills and practical capabilities of employees, especially young designers. In 2025, the company completed 55 training programs with the participation of 1,681 attendees.

To meet the needs of digital design, the company has organized specialized training on the secondary development language of AM software for shipbuilding, machinery, and electrical personnel with programming fundamentals.

澳

The company has fostered a culture in which “everyone can innovate” by encouraging innovation through mechanisms such as rationalization proposals and the selection of advanced operating methods, stimulating frontline employees enthusiasm for innovation and enabling innovative achievements to emerge continuously from the grassroots. At the COSCO SHIPPING Heavy Industry 2025 Science and Technology Innovation Awards, two employees of the company were honored with the titles of “Advanced Individual in Science and Technology Innovation” and “Outstanding Designer,” respectively, demonstrating the company's strong innovation talent pool.

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. Receives the Shanghai Rationalization Proposal Innovation Award

The company's Technical Improvement of the Universal Auxiliary Arm for High-Pressure Water Guns project won the Shanghai Advanced Operating Method Innovation Award. By enabling the high-pressure water gun to rotate freely at multiple angles, the project has significantly improved operational flexibility. It has reduced labor intensity and labor costs while effectively eliminating the safety risks associated with manual handheld operation. Its precise operation has also reduced water waste, putting the concept of green environmental protection into practice.

中国远洋海运集团有限公司工会

中远海工函［2025］30号

关于转发上海市职工技协《关于命名2025年上海市职工合理化建议和先进操作法优秀成果的决定》的通知

上海地区各二级公司工会：

近日，上海市职工技术协会印发了《关于命名2025年上海市职工合理化建议和先进操作法优秀成果的决定》（沪工技协[2025]2号），对获得由上海市总工会、市科委和市经信委审核命名的2025年职工合理化建议和先进操作法优秀成果进行表彰。集团所属的上海中远海运重工《高压水枪万向辅助臂技改》获合理化建议创新奖，中远海运能源《一种大型柴油机水套辅助拆解先进操作法》获先进操作法优秀成果奖。

Product Quality

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has always regarded quality as the lifeline of the company. By improving its management system, strengthening process control, and enhancing the quality awareness and capabilities of all employees, the company has established a full-process quality management system covering ship repair, retrofitting, and offshore engineering construction, continuously providing customers with reliable products and services.

At the same time, the company has continuously improved engineering quality through technological innovation and process optimization, striving to achieve the construction objectives of “zero rework, zero accidents, and high quality,” fully demonstrating its commitment to excellence in quality.

Institutional Assurance

COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has continuously improved its quality management system by optimizing operational procedures, strengthening self-inspection mechanisms, enhancing team development, and reinforcing supply chain management. The company has established a full-process institutional system covering system audits, operational control, supplier management, and project management, ensuring that quality management is carried out in accordance with established rules and procedures.

In 2025, with the ISO 9001 Quality Management System as the core, the company continuously optimized its institutional processes and operational standards to ensure that quality management was conducted in a standardized and wellregulated manner. In 2025, the company completed the DNV (ship repair) and ABS (offshore engineering) management system audits, ensuring the effective operation of its quality management system and strengthening the foundation of its business.

ABS ISO 9001 Certificate DNV ISO 9001 Certificate

ABS ISO 29001 Certificate