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2025 COSCOSHIPPINGHEAVYINDUSTRY(SHANGHAI)CO.,LTD Sustainability Report
CONTENTS
About This Report 01
Message from Management 02
Company Profile 03
ESG Management 05
Special Topic：Enabling 11
the Smart Digital Factory
Appendix 107
• Performance Data Table 107
• GRI Standards Content Index 112
• Carbon Verification Statement 119
• Assurance Statement 120
01
Stable Governance· Strengthening the Foundation for Development
Party Leadership 21
Corporate Governance 27
Risk Management 29
Business Ethics 31
Information Security 37
02
Green Operations· Protecting Blue Skies and Clear Waters
Climate Change Response 41
Environmental Management 48
Resource Conservation 51
Pollution Prevention and Control 55
Ecological Co-prosperity 60
03
People-Oriented Approach· Creating a Better Society Together
Talent Development and Cultivation 65
Employee Rights and Interests 71
Occupational Health and Safety 77
Social Contribution 84
04
Craftsmanship in Service· Empowering Global Navigation
Lean Management 89
Research and Development 91
Product Quality 97
Customer Service 102
Supplier Management 103
Industry Collaboration 106
About This Report
Overview
This Report is the second Sustainability Report published by COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. (hereinafter referred to as “CHI (Shanghai)”, the “Company”, or “we”).It provides a detailed disclosure of CHI (Shanghai)’s practices and performance in environmental protection, social responsibility, and corporate governance during 2025, with the aim of communicating to stakeholders our policies, initiatives, and achievements in environmental, social, and governance management.
Data Sources and Reliability Statement
The information and data disclosed in this report are derived from publicly available data released by government authorities, internal statistical reports, administrative documents and reports, as well as thirdparty assessments. All information and data contained in this Report have been reviewed and approved by the management of CHI (Shanghai).
CHI (Shanghai) hereby warrants that this Report contains no false records, misleading statements, or material omissions, and assumes responsibility for the authenticity, accuracy, and completeness of its contents.
Unless otherwise specified, all monetary amounts disclosed in this Report are denominated in Renminbi (RMB).
Reporting Scope and Boundary
This Report is an annual report covering the period from January 1, 2025 to December 31, 2025. Certain information disclosed in this Report extends beyond the reporting period. Such information is specified where applicable.
Reporting Basis
Global Reporting Initiative (GRI) Standards
United Nations Sustainable Development Goals (UN SDGs)
Sustainability Accounting Standards Board (SASB) Standards
Access to the Report
To uphold the principles of low-carbon environmental protection and sustainable development, this Report is primarily published in electronic format through the Company's official WeChat public account.
Message from Management
The year 2025 marked the successful conclusion of the Fourteenth Five-Year Plan and the commencement of strategic planning for the Fifteenth Five-Year Plan. It was also a year in which CHI (Shanghai) remained committed to its original aspirations, focused on its core business, and advanced with determination. On behalf of the management team, I would like to extend my sincere gratitude to all partners who have continuously supported us and to every employee whose dedication and hard work have driven our progress.
At the forefront of China's efforts to build itself into a maritime powerhouse and a transportation powerhouse, we have always kept national priorities firmly in mind. Guided by our “One and two Wings business strategy” development strategy and driven by the “11210” Initiative, we have deeply integrated green and low-carbon development, digital and intelligent innovation, as well as safe and efficient operations throughout the entire value chain of ship and offshore engineering equipment repair and retrofitting. With unwavering commitment, we have continued to advance along the path of highquality development.
Over the past year, we remained committed to green development and strengthened our environmental stewardship.In our operations, we strictly adhered to environmental compliance requirements, advanced green manufacturing practices, and actively implemented China's Dual Carbon goals. We completed rooftop photovoltaic and user-side energy storage projects and were recognized as a Shanghai Green Factory (Four-Star) and a Waste-Free Factory. In 2025, we successfully delivered the world's first carbon-capturing FPSO and advanced large-scale retrofitting projects involving methanol dualfuel and LNG-powered vessels. Through cleaner production processes, low-carbon technologies, and source-based emission reduction measures, we contributed to protecting blue skies and clean oceans.
Over the past year, we remained committed to craftsmanship, product excellence, and quality service while continuously deepening lean management.Throughout the year, we completed the repair and delivery of 350 vessels (including \mathsf { C H l + } projects), successfully overcoming multiple world-first high-end retrofitting challenges. Customer satisfaction and firsttime inspection pass rates remained at a consistently high level, demonstrating our capability to support the development of China's maritime industry through professional expertise and reliable services. We also accelerated digital and intelligent transformation, establishing a Shanghai Advanced-Level Smart Factory and implementing comprehensive digital solutions, including digital employees, smart logistics, and integrated energy management systems. These initiatives significantly enhanced operational and management efficiency, generated substantial innovation achievements, and injected new momentum into the intelligent transformation of the traditional ship repair industry.
Over the past year, we remained committed to a people-oriented approach and focused on employee development and well-being.Through the targeted empowerment programs of the “Liangjian (Sword Display) Class, Lijian (Sword Tempering) Class, and Zhujian (Sword Forging) Class”, together with a comprehensive mentorship and apprenticeship system, we significantly enhanced employee training coverage, reaching a new record in training participation. We have safeguarded employees’ lawful rights and interests in accordance with applicable laws and regulations, and further improved health protection, human care, and employee support mechanisms, striving to build a warm and inclusive workplace with a strong sense of belonging.At the same time, we actively engaged in rural revitalization, consumer assistance programs, community co-construction initiatives, and public welfare volunteering activities. We also prioritized local employment opportunities, contributing to regional development through practical actions. These efforts demonstrate our commitment to fulfilling corporate social responsibility and strengthening our image as a responsible enterprise.
Looking ahead, we will further integrate ESG principles into our strategic decision-making and operational management. We will continue to advance our dual-driven strategy of green and low-carbon development and digital and technological innovation, while upholding the spirit of “Liangjian Endeavor”. We will remain committed to innovation, continuous improvement, and operational excellence, with the ambition of building a world-class flagship facility for green, low-carbon, and intelligent ship repair and offshore engineering.
On this new journey, we will consistently embrace sustainable development as our guiding sail and responsibility as our driving force. Together with all stakeholders, we will make greater contributions to the development of China as a maritime powerhouse and the green transformation of the shipping industry, and we will strive to deliver a new chapter of high-quality development through concrete actions and tangible results.
Company Profile
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. was established in November 1996 and is a subsidiary of COSCO SHIPPING Heavy Industry Co., Ltd., under China COSCO Shipping Corporation Limited. The Company’s core business covers the repair and retrofitting of ships and offshore engineering equipment.
CHI (Shanghai) firmly implements the “One Core, Two Wings” development strategy, with conventional ship repair services as the core business, and new energy retrofitting and offshore modules as the two strategic growth drivers. The Company is committed to building a world-class flagship shipyard for green, low-carbon, and intelligent ship repair and offshore engineering.
CHI (Shanghai) is located on the southern shore of Changxing Island in Shanghai, a marine equipment hub island. The Company occupies a total area of 510,000 square meters, with a shoreline of 3,163 meters and a total quay length of 4,375 meters. It operates 13 berths and one heavy-lift offshore equipment terminal, as well as five floating docks, with a total dock capacity of 790,000 tons.
The Company focuses on ship repair and retrofitting services characterized by high technological content, high value added, and high profitability. Through continuous technological innovation and lean management, CHI (Shanghai) steadily enhances product quality and service capability, and further consolidates its leading position in the high-end ship repair and offshore engineering market.
2025
Repair and retrofitting of Vessels (including \mathsf { C H l + } projects)
Operating Revenue
350 vessels
RMB 3,106.73 million
Uphold integrity and pursue innovation; advanced with determination
Promote the “Liangjian Culture” and uphold an enduring spirit of endeavor
Dare to take action and compete with determination; strive with perseverance and resilience i n b u s i n e s s o p e r a t i o n s ; achieve “Right First Time”; continuously surpass ourselves; and embrace dedication and appreciation
Innovation-oriented, talent-driven; customer success; and ecological co-prosperity
| No. | Organization |
| 1 | Shanghai Association of Shipbuilding Industry |
| 2 | Shanghai Port-of-Entry Association |
| 3 | Shanghai Society of Naval Architects and Marine Engineers |
| 4 | Shanghai Port Industry Association |
| 5 | Chamber of Commerce of Changxing Town, Chongming District, Shanghai |
| 6 | Shanghai Association of Plant Engineering |
| 7 | Shanghai Energy Conservation Association |
| 8 | Shanghai Fire Protection Association |
| 9 | Chongming District Work Safety Association,Shanghai |
| 10 | Shanghai Enterprise and Institution Healthcare Management Association |
| 11 | Chongming Green and Low-Carbon Environmental Protection Industry Service Center |
| 12 | Port and Shipping Committee of Shanghai Enterprises and Institutions Security Association |
| 13 | Xuhui District Human Resources & Labor Association, Shanghai |
| 14 | Shanghai Welding Association |
| 15 | Chongming District Health Association, Shanghai |
| 16 | Member of China Offshore Platform Journal |
ESG Management
CHI (Shanghai) has thoroughly implemented China’s Dual Carbon strategy and green development philosophy, and has fully integrated ESG principles into its corporate strategy and daily operations. The Company systematically identifies and manages ESG-related risks and opportunities across environmental, social, and governance dimensions, continuously improves its information disclosure practices and stakeholder engagement mechanisms, and guides its sustainable development with a long-term value creation perspective.
ESG Governance
CHI (Shanghai) has established a three-tier ESG governance structure consisting of “decision-making, coordination, and execution”. Each level of the organization has clearly defined responsibilities and operates in an efficient and coordinated manner, ensuring that ESG principles are effectively embedded throughout the entire business process from top-level governance to daily operations.
The decision-making level has been responsible for reviewing and approving ESG strategic policies and medium- to long-term objectives, supervising the management of material ESG risks and performance, and bearing ultimate responsibility for the truthfulness, accuracy, and completeness of ESG disclosures.
Led by the Company’s senior management, with the participation of heads of functional departments, the coordination level has been responsible for cascading ESG strategic objectives, coordinating resource allocation, facilitating cross-departmental collaboration, and regularly reporting ESG progress to the General Manager’s Office. It has also promoted the deep integration of ESG considerations into the Company’s business planning and operational management.
Functional departments and production workshops serve as the primary implementation units for ESG management. They are responsible for translating ESG objectives into specific job responsibilities, conducting daily management and data collection, and implementing improvement actions to enhance ESG performance.
Training
Training Program 1:ESG Capacity Building
In 2025, CHI (Shanghai) organized employees to participate in a series of Dual Carbon capacity-building training programs hosted by institutions such as the Shanghai Economic Information Center and other relevant organizations. The training programs enhanced employees’ professional competencies in energysaving technologies, carbon management, and innovative thinking, thereby injecting new momentum into the Company’s green transformation and high-quality development.
Training Program 2:Energy Conservation and Low-Carbon Development Training
Experts from the Shanghai Energy Conservation Center delivered a session focusing on the core topic of“precise carbon footprint accounting and systematic emission reduction strategies in the industrial sector.” The training addressed key decarbonization challenges in the shipbuilding and offshore engineering industries, and introduced several energy efficiency improvement solutions, including DC intelligent lighting systems and smart energy management platforms for air compressor stations. In addition, experts from Chongming District provided a detailed interpretation of the latest requirements under the Chongming District Action Plan for Carbon Peak 2025, with a focus on the enterprise carbon performance assessment mechanism.
Stakeholder Engagement
| Employees | Communities and the Public | Industry Associationsand Peers |
| · Employee rights and interests | · Pollutant emissions | · Green production ·Technological innovation |
| · Occupational health and safety Training and development | ·Biodiversity protection · Community outreach | |
| ·Diversity and equal opportunities | ||
| Trade union engagement | Community visits | |
| · Internal emails | · Public open days | Technical seminars |
| · Employee meetings | ：environmentalinformation disclosure | industry conferences |
| Satisfaction surveys | ·volunteer activities | · standard-setting meetings |
| Cultural and sports activities | · social media | joint projects |
| Psychological support hotline | ·corporate website | study visits and exchanges |
Identification of Material Issue
CHI (Shanghai) has conducted an annual analysis of material issue in accordance with the GRI Standards, the International Financial Reporting Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB), and applicable domestic regulatory requirements. Following the principle of double materiality, the Company identifies and assesses material ESG topics to ensure the relevance and responsiveness of its ESG disclosures.
Based on a comprehensive understanding of the Company’s business model, value chain activities, and industry context, and with reference to GRI Sector Standards, peer benchmarking analysis, leading ESG rating methodologies, and domestic and international policy requirements, the Company has initially identified a list of material topics covering environmental, social, and governance dimensions.
The Company has systematically identified and assessed both actual and potential impacts of its operations and business relationships on the economy, environment, and labor rights. Taking into account short-term, medium-term, and long-term perspectives, it has further analyzed the risks and opportunities that sustainability-related topics may pose to the Company’s operations, financial performance, profitability, and business model, thereby clarifying key areas of focus.
酒 Validation Issue
Through stakeholder surveys, expert consultations, and internal workshops, the Company has comprehensively evaluated material topics from both impact and financial perspectives. Based on the assessment results, the Company has prioritized material issues and developed a materiality matrix.
Special Topic
[Enabling the Smart Digital Factory]
The global manufacturing industry is undergoing a profound wave of digital transformation. Against this backdrop, CHI (Shanghai) is anchored in its vision of“building a fully connected smart CHI (Shanghai) and becoming an industry benchmark,” laying a solid digital foundation for achieving a “visual factory by 2028” and a “smart shipyard by 2030.”
To systematically advance this transformation, the Company has developed and continuously refined a three-tier digitalization planning system. It has formulated a top-level digital transformation blueprint as well as a dedicated plan for the Fifteenth Five-Year Plan period, thereby clearly defining its digital development roadmap. During the reporting year, a dedicated digital transformation department was established to strengthen organizational support and to coordinate and advance all transformation initiatives.
The transformation is designed to address long-standing operational, production, and management pain points within the Company, enabling deep integration between business processes and digital technologies through data-driven and intelligent solutions.
In the implementation process, the Company has established a series of internal policies and management systems, including the Management Measures for Digital Project Implementation, the Performance Health Index (PHI) Evaluation and Assessment Measures for Digital Projects, and the Digital Demand Management Measures, ensuring standardized project development and efficient operation.
At present, the Company’s digital capability maturity has reached Level 3, and it has been recognized as an “Advanced-Level Smart Factory” in Shanghai.
Strategy
By 2028, CHI Shanghai will have established a full digital twin factory
enabling virtual simulation and optimization of production processes. The company has continuously deepened the application and iterative development of digital intelligence systems. It has promoted core systems as industry benchmarks and has extended them to affiliated enterprises within the COSCO SHIPPING Group. The company has continuously enhanced the enabling value of digital intelligence in supporting business operations and industrial upgrading.
By 2030, CHI Shanghai will have built an intelligent manufacturing factory
achieving a strategic transformation from “business enablement” to “business leadership” through digital intelligence. The company will become a benchmark enterprise for digital transformation and smart manufacturing within the shipbuilding and heavy industry sector.
The strategy follows the “1-2-3-4-5-6 Blueprint”, namely:
Two Guiding Principles: Strategic alignment and innovation-driven development.
One Vision:
To build a fully connected digitalintelligent COSCO SHIPPING Heavy Industry (Shanghai) and establish an industry benchmark enterprise.
Six Transformation Outcomes:
Standardized processes, online business
operations, end-to-end data integration, management visualization, intelligent decision-making, and intelligent manufacturing.
Three Strategic Priorities: Business collaboration, digital-intelligent operations, and intelligent manufacturing.
Four Enabling Platforms: Technology platform, data platform, integration platform, and AI middle platform.
Five Key Strategies:
Leveraging group resources, organizational optimization, layered architecture, pilotfirst implementation, and rapid iteration.
In 2025, the company was recognized as an “Advanced-Level Intelligent Factory” in Shanghai
| Functions Core | The system has realized full life cycle digital management and control of outsourced labor resources,covering more than 80 business processes and over 3oo management functional points, including labor pricing, wage supervision, and work efficiency assessment. | Internet and Digital Twin technologies.It connects people,vehicles,and equipment to enable intelligent logistics scheduling and dispatching.In Phase Il,it has added intelligent lifting and transportation integrated operations, electronic map and geofencing management, forklift scheduling,and elevated vehicle management |
| Achievements Key | Outsourced management efficiency has improved by more than 80%, effectively addressing challenges in large-scale coordination and compliance-based cost reduction. The system has been promoted to multiple peer enterprises. | The ship repair and retrofitting industry has achieved, for the first time, full-process digital scheduling of lifting and towing operations. Overall logistics efficiency has increased by more than 20%,and resource utilization has increased by more than 15%. |
Ship Repair Management System
Integrated Energy Smart Management System
Digital Employee System
T h e c o m p a n y h a s c o n d u c t e d 450 person-times of specialized training and has optimized 12 core processes. Supporting systems such as the shafting load test system and intelligent ship scheduling system have been launched.
The system has realized intelligent control of oxygen, natural gas, carbon dioxide and other power pipeline networks, as well as real-time energy metering and monitoring across departments and terminals. A carbon management module and carbon database have been built to carry out carbon emission accounting and management.
The system has incubated digital humans, intelligent procurement, AI dispatching, and intelligent shipshifting scheduling agents, as well as RPA applications. The first batch of digital employees has been deployed in 11 key business scenarios, and general-purpose and safety-related AI Q&A functions have been added.
Shafting load testing time has been reduced from 4 hours to 1.5 hours and has been applied to multiple vessels. The intelligent ship scheduling system simulation shows that berth utilization could be increased by 8 % , and ship repair end-to-end coordination efficiency has been significantly improved.
The system has achieved intelligent control of three-gas pipeline networks, workshop and equipment-level energy metering, and real-time energy consumption budget monitoring, providing data support and technical assurance for the dual-carbon goals.
Efficiency in material procurement and financial invoicing processes has improved by more than 5 0 % . Early risk warning has been enabled in contract approval and other processes.
Innovation Application Unmanned Weighbridge Management System
The unmanned weighbridge management system integrates Internet of Things (IoT), artificial intelligence, and big data analysis technologies to realize full-process automation of weighing, realtime data processing, and intelligent supervision.
Application of Intelligent Manufacturing Equipment
H 丰E COSCO SHIPPING
While strengthening organizational governance and institutional development, the company has also attached great importance to talent as a core enabler of transformation and has continuously deepened its “Yujian (Talent Sword) Project” talent strategy. Focusing on key areas such as AI technology applications, intelligent manufacturing, and green and low-carbon development, the company has carried out a series of branded training programs in a tiered and phased manner. Through systematic capability building and practice-oriented development, the company has fully cultivated a multidisciplinary digital talent team that is proficient in both business operations and technological expertise. Team members have also actively participated in industry-authoritative certifications and specialized training programs. Among them, multiple employees have successfully obtained professional certifications such as Information System Project Manager and System Architect, with their professional capabilities officially recognized by authoritative institutions.
Key Performance Indicators
4 employees participated in the Huawei HCIP-Datacom certification examination, and 1 employee participated in specialized training on data governance.
\underline { { \mathbf { 1 } } } Digital Intelligence Planning Specialist and \mathbf { 1 } Assistant Planning Specialist have been developed.
01
Stable Governance: Strengthening the Foundation for Development
Stable governance is a key safeguard for enterprises to respond to change and achieve long-term, steady development. COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. adheres to Party leadership, continuously improves its corporate governance structure, strengthens risk and compliance management as well as business ethics building, and regards information security as an important pillar of its governance system. The company is committed to building an agile, efficient, compliant, and transparent modern governance system, laying a solid foundation for high-quality development.
Strengthening Ideological Foundation
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. adheres to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and has thoroughly implemented the guiding principles of the 20th National Congress of the Communist Party of China and subsequent plenary sessions of the 20th Central Committee. The company has faithfully carried out the work arrangements of the Party Group of COSCO SHIPPING Group and the Party Committee of COSCO SHIPPING Heavy Industry.
The company has upheld a systems-oriented approach and a problem-oriented mindset, focusing on the three key tasks of “deepening integration, improving quality and efficiency, and strengthening brand building.” It has continuously strengthened Party-building efforts and has promoted the deep integration of Party-building with corporate governance, production and operations, and talent strategy.
Key Performance Indicators
7 Seven Party Committee Center Group (expanded) study sessions have been conducted.
26 “First Agenda Item” learning sessions have been carried out.
The monthly compliance rate of the “Three Meetings and One Lesson”system has consistently exceeded 100 %
30 issues of the Learning and Education Column have been produced and issued.
Theoretical Learning Strengthens the Foundation and Guides the Direction, while Ideological Commitment Inspires a New Journey. In 2025, COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. promptly followed up on the study of the important speeches, instructions, and directives of General Secretary Xi Jinping, strictly implemented the “First Agenda Item” mechanism, and effectively translated the decisions and arrangements of higher authorities into concrete practices for the Company’s development. The Company formulated an implementation plan for carrying out learning and education on thoroughly implementing the spirit of the Central Eight-point Decision on Improving Conduct. With reading sessions as an important platform, the Company systematically completed seven thematic learning sessions and promoted the improvement of work style to be deeply understood and internalized.
Strict Management and Genuine Care Build Safeguards, while Combining Learning with Practice to Pursue Effectiveness. The Company organized a warning education conference, regularly reinforcing the warning and guidance role of ideological education. At the same time, the Company carried out thematic Party lectures and discipline education sessions, extensively collected opinions and suggestions, and adopted multiple measures to promote the learning and education to achieve deeper implementation and effectiveness. Relying on traditional platforms such as the “Three Meetings and One Lesson” mechanism and themed Party Day activities, the Company fully completed the mobilization and deployment of learning and education on thoroughly implementing the spirit of the Central Eight-point Decision on Improving Conduct. The Company innovated learning and education methods by organizing online knowledge tests, with more than 1,500 participants and full coverage of Party members achieved. The Company organized Party branches to participate in online training programs and used diversified approaches to overcome the rigid and monotonous issues of traditional Party-building reporting, promoting theoretical learning to take root.
Theme Party Day Activity titled “Inheriting the Spirit of Martyrs and Forging Contemporary Responsibility”
Film Viewing Activity
Visit to the Memorial Site of the First National Congress of the Communist Party of China and Red-themed Lecture
Thematic United Front Work Symposium titled “Embracing New Missions for a Strong Nation and Striving to Be a Pioneer in Innovation”
In order to thoroughly study and implement General Secretary Xi Jinping’s important thinking on strengthening the United Front work in the new era, as well as the spirit of the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China, the company organized a thematic United Front work symposium titled “Embracing New Missions for a Strong Nation and Striving to Be a Pioneer in Innovation” on the morning of November 20.
The meeting conducted a dedicated study of General Secretary Xi Jinping’s important exposition on United Front work in the new era, and conveyed and implemented the spirit of the United Front work symposium of the Party Committee of COSCO SHIPPING Heavy Industry. Representatives from non-Party personnel shared their learning experiences and reflections, and provided constructive suggestions and insights focusing on the company’s strategic positioning, digital transformation, and technological innovation.
Moving “Three Meetings and One Lesson” to the Worksite
The subcontractor Party branch of COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has innovated the organizational life format and has moved Party member meetings and Party lectures to the“frontline worker meeting space” in the scaffolding operation area.
The activity has broken through the traditional meeting room model and has adopted the approach
of “on-site teaching ^ + rotational guided learning ^ + practical exchange,” promoting the deep integration of theoretical learning and production practice.
At the meeting, members of the branch committee took the lead in delivering study content, shared experiences in combination with their job responsibilities, and conveyed the company’s vision under the 15th Five-Year Plan as well as the spirit of the monthly meeting, ensuring that strategic deployment reaches the grassroots level.
At the same time, opinions and suggestions from Party members on planning formulation, digital transformation, and Party branch construction were widely collected, pooling frontline wisdom.
This activity has achieved that “learning is carried out on the front line, problems are solved on the front line, and results are demonstrated on the front line,” effectively stimulating the sense of responsibility and enthusiasm of subcontractor Party members in their posts.
Deepening Integration and Empowerment
The company has taken the “Six-in-One” Party-building system as the guiding framework and has promoted the integration of red gene inheritance into production and operations. Through “chain-based” Party-building empowerment for high-quality development, the company has strengthened Party branch foundations, reinforced the cadre and talent team, deepened Party conduct and clean governance, and strengthened publicity, ideological, and cultural development.
The company has deeply implemented the “Three Synchronizations” concept of Party-building integration with COSCO SHIPPING Heavy Industry characteristics, and has continuously expanded the practical scope of “Party Building + ^ { , , , } initiatives. Guided by the “Four Leading Roles,” the company has focused on the “Two Major Tracks,” strived to become “Three Pioneers,” and has actively built a comprehensive Party-building pattern with full coverage and deep integration.
The Company has continuously strengthened the standardized and regulated development of Party organizations, laying a solid foundation for Party-building work. In 2025, the Company strictly implemented the “Three Majors and One Big” decision-making system, clarified the boundaries of responsibilities and authorities among Party organizations and various entities within corporate governance, and focused on enhancing the cohesion and combat effectiveness of Party organizations. The Company held the annual organizational life meeting and carried out the democratic evaluation of Party members in a standardized manner. The Company widely listened to opinions and suggestions from Party members regarding the Company’s Party Committee, summarized and formed improvement suggestions covering four aspects, including responsibility implementation and team building, adhered to using evaluation to promote improvement and using improvement to enhance quality, and continuously promoted the improvement of the quality and effectiveness of Party-building work.
Strengthening Party-led Talent范De履ve职lo显p担me当nt and Workforce Building
Party Leadership Cultivates Talent and Strengthens the Team Through Continuity.
The Company adheres to the principles of the Party’s management of cadres and talent, and strengthens the development of the Party member team. Strictly following the standards and procedures for Party member development, the Company conducted special training on the development of Party members and the confirmation of activists for Party membership as full members. At the same time, the Company urged all Party branches to effectively carry out the cultivation, education, and assessment of registered applicants for Party membership and candidate member of the Communist Party of China, establish a growth pathway for Party members, and build a high-quality Party member team that is loyal, clean, and responsible.
2025
5 new Party members have been developed;
4 probationary members have been converted to full membership; and
2 specialized training sessions on Party member development and probationary member confirmation have been conducted.
Chain-based Party Building for Synergy and Integrated Development
The Company has deeply advanced Party-building work across the industrial chain, promoting coordinated development of the industrial chain under the leadership of Party building. In 2025, the Company initiated fifteen Partybuilding research projects, addressing business development challenges through research and promoting deeper coordination between Party-building work and production and operation. The Company deepened the construction of Partybuilding integration demonstration projects, focusing on characteristic initiatives such as “Party Building ^ + Technological Innovation,” “Party Building ^ + Intelligent Transformation and Digital Transformation,” and “Party Building ^ + Lean Production Management Capability Enhancement.” The Company worked to transform the advantages of Party building into development momentum, address the issue of the separation between Party building and business operations, and inject strong momentum into the Company’s high-quality development.
上海中远海运重工2025年首期AI赋能高效办公技能培训班（铸剑班） 老创奋斗
“Chain-based” Party Building – Methanol Dual-Fuel Project Joint Construction
The Party Committee of COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has deepened the connotation of “chain-based” Party building and has promoted the deep integration of Party building with production and operations.
On the morning of January 21, the joint special working group for new energy ship repair and retrofitting convened a Party-building co-construction promotion meeting for the methanol dual-fuel retrofitting project. The meeting clarified that, through joint construction between project Party branches, communication and coordination between
both parties should be strengthened to form a production collaboration advantage under the guidance of Party building, thereby improving project execution efficiency and quality and building a branded Party-building coconstruction initiative.
At the same time, the meeting emphasized the solid advancement of value creation, transforming the effectiveness of Party-building work into practical driving force for project implementation. Both parties jointly explored the application of new technologies and new processes, improving the project’s environmental performance and level of intelligence.
Deepening Cultural Development
Cultural empowerment has strengthened the core foundation, and Party-building leadership has shaped the corporate brand. The company has taken the cultivation of the “Bright Sword and Striving” cultural brand as its core objective, and has deeply advanced the development of core culture, institutional culture, and behavioral culture, driving the company’s “hard competitiveness” through cultural “soft power”.
The company’s Party-building research achievement, “The Establishment and Practical Path of Cultural Confidence in State-owned Enterprises in the New Era,” has been recognized as an Outstanding Case of New Era Enterprise Partybuilding Innovation (First Edition, 2025) by Hongqi Press, demonstrating the company’s integrated achievements in Party building and cultural development.
The Party-building research achievement of COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has been awarded the Outstanding Annual Case by Hongqi Press.
2025（首届）新时代企业党建创新优秀案例华电湖北新能源有限公司党委 浙江永联民爆器材有限公司水进分公司党总支 淮北矿业股份有限公司生产装备分公司党委名 创11品绿色发展 保 党建默能“无人化”变军，民爆生产线智教运行与安全管控新范式 党建领航匠心逐梦，塑特色品牌赋能新质生产力陕煤集团陕北矿业有限公司信息技术运维分公司党总支 中铁建设集团中原建设有限公司党委 中建新疆建工（集团）有限公司党委高名 双能诞动视构下国有企业党建与生产经营融合典生机制研究 钢深化“铁军志”党建文化品房建设，推动党建与生产经营深皮融合 凭建引领‘”来可期同心维就乡村振兴美丽画卷无锡市建设发展投资有限公司党委 浙江金投鼎新私募基金管理有限公司党支部 浙江金控投资有限公司党总支刷 党建圾航合力“红五XIN”铸就新征 名 党建领航康洁伙计划，全方位护航基金群规范阳光落地 名 “车联未来”产业功能型综合党委产业链党建的实践探索上海中远海运重工有限公司党委 云南景欣物业管理有限公司党支部 浙江省铁路发展控股集团有限责任公司第二党支部真名供 新时代有企业文化自信的建立及实践路径 党建引顿“小红众”，红色服务颁民心 诗面·路青山绿水 诗面金建浙江镇洋发展股份有限公司党委 州南得新开建设集团有限公司创业测绘党支部 中核核电运行管理有限公司财务处党支部高 “红网联心”助推企业高质量发展 高便 创新保索“智绘+”融合发展新路径 党建引领控成本，追求卓越争领跑
Innovating Communication and Promoting Concepts, Strengthening the Image Through Internal and External Collaboration. The Company innovated the forms of cultural communication and launched the “Liangjian Struggle Culture Micro-Theater” on the Company’s WeChat official account, conveying cultural concepts through vivid and engaging short videos. The Company continued to promote the development of the “Corporate Exhibition Hall Presentation Team,” strengthening internal and external communication of corporate culture. Throughout the year, the Company conducted a total of eighty-nine presentations and received more than 1,160 visitors, comprehensively demonstrating the Company’s Party-building achievements and the appeal of its corporate culture.
亮剑奋斗文化小剧场 8行为文化篇 第一集+
strengthening the team and enhancing communication, upholding tradition and innovating to deliver messages. The Company strengthened the development of the publicity team and organized outstanding correspondents to participate in the AIGC themed training organized by the COSCO SHIPPING Group Party School, the 2025 Publicity Business Training Program of COSCO SHIPPING Heavy Industry, and the exchange meeting for the 200th issue of Heavy Industry Newspaper. The Company cooperated with COSCO SHIPPING Heavy Industry in carrying out activities such as the Group’s spring writing workshop, and regularly conducted specialized training on photography, videography, news writing, and other topics. With more than 150 participants trained in total, the Company continuously improved the professional capabilities of the publicity team and provided solid talent support for corporate culture communication and the transmission of Party-building messages.
Corporate Governance
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has continuously improved the governance mechanism featuring legally defined rights and responsibilities, transparent rights and responsibilities, coordinated operation, and effective checks and balances. The Company adheres to the Articles of Association as the fundamental guideline, clearly defines the boundaries of rights and responsibilities among various governance entities, and promotes the overall improvement of governance efficiency. In 2025, the Company systematically revised key provisions in the Articles of Association regarding the powers of executive directors, supervisors, shareholders and directors, as well as the dissolution and liquidation of the Company, division, and changes in registered capital, further improving the corporate governance structure. By continuously improving the modern enterprise system with Chinese characteristics, the Company empowers high-quality development through efficient governance and lays a solid institutional foundation for steady and long-term development.
Conflict of Interest Management
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has firmly defined the “red line” for prohibited conflicts of interest and strictly prohibits employees from directly or indirectly obtaining economic benefits from decisions related to their job responsibilities. The company has improved its core management systems and has issued a series of policies, including the Implementation Rules for the “Three Majors and One Big” Decision-Making System, the Compliance Management Measures, and the Employee Recruitment Management Measures.
These systems cover key areas such as decision-making, human resources, business operations, and part-time employment, thereby preventing risks of benefit diversion from the source of decision-making.
Internal Employees
•The company has strictly implemented the kinship avoidance system in accordance with the Employee Recruitment Management Measures, requiring employment avoidance for relatives within three generations. Applicants are required to truthfully declare family relationships. It is strictly prohibited for spouses, children, and other related persons of management personnel to hold key positions within areas under their supervision.
•The company has implemented mandatory rotation for key positions in accordance with the Regulations on the Management of Key Position Rotation (Trial). Employees who violate rotation discipline are subject to strict accountability to prevent the risk of interest solidification.
External Part-time Employment
&
•In accordance with the Compliance Management Measures, the company has implemented strict control over employees’ external part-time activities and has established a pre-approval and filing system. Employees are strictly prohibited from holding positions in external enterprises, intermediary institutions, or other organizations without approval.
•For employees whose external part-time engagement has been approved, it has been clearly stipulated that no form of remuneration shall be received, and any behavior involving the use of part-time roles to engage in activities that may create conflicts of interest with the company is strictly prohibited.
In 2025, the company has fully launched a special inspection program to prevent illicit equity investments and noncompliant related-party transactions. In strict accordance with multiple relevant notices issued by the headquarters of COSCO SHIPPING Heavy Industry, the company has organized key-position personnel to sign relevant commitment letters. The company has updated the list of key-position personnel and has required 22 newly appointed or repositioned employees to sign special self-inspection commitment letters.
Through multiple rounds of targeted inspections, no compliance violations have been identified, thereby strengthening the company’s compliance management defense line.
Tax Compliance
The company has adhered to lawful, honest, and reasonable tax payment practices and has formulated a clear tax management strategy to standardize tax management processes, reasonably control tax risks, and prevent taxrelated violations.
The company has established a mechanism for collecting and updating tax regulations and has timely obtained applicable policies from the official website of the State Taxation Administration of the People’s Republic of China. It has strictly followed and implemented relevant national tax regulations, and has consistently maintained lawful and honest tax compliance practices, actively shaping a responsible corporate tax compliance image.
Key Data
During the reporting period, the company has paid taxes in accordance with the law amounting to RMB 23.7427million
I n te r m s o f o rga n i zat i o n a l st r u ct u re a n d co n t ro l mechanisms, the company has established a clear tax management governance framework. It has implemented full-process tax risk control covering key areas such as invoice management, approval procedures, and document archiving. A hierarchical reporting mechanism for major tax risks has been implemented to ensure timely and proper risk handling.
At the same time, through both regular and ad-hoc tax training sessions and business exchanges, the company has communicated tax management requirements and collected practical operational issues, thereby enhancing tax compliance awareness across all employees.
During the reporting period, the company has not experienced any overdue tax payments or related litigation cases, and its tax management operations have remained standardized and orderly.
Risk Management
System Development
In 2025, the company has established the Comprehensive Risk Management and Internal Control Committee as well as the Rule of Law Construction Leading Group and Compliance Management Committee. Compliance and risk control specialists have been appointed, and risk management responsibilities at all levels have been clearly defined, forming a cross-departmental, end-to-end coordinated risk governance mechanism.
The company has continuously revised core systems such as the Sanctions Risk Management Measures and the Contract Management Measures, and has formulated the Management Measures for Disposal of Idle and Waste Materials as well as the Regulations on Reporting Major Operational Risks and Major Risk Events, promoting the institutionalization, process standardization, and proceduralization of risk management.
On the basis of the existing comprehensive risk management system, the company has further focused on key risks and special risk control areas. A long-term “case-based improvement” mechanism has been established. Targeted analyses have been conducted on typical cases such as contract disputes, settlement disputes, and the identification of “Three Majors and One Big” matters, forming a closed-loop management system covering issue rectification, process optimization, and system improvement.
At the same time, the company has established a “annual assessment ^ + quarterly monitoring” risk management mechanism to accurately identify, scientifically assess, and effectively respond to major risks, and has dynamically updated the risk register. In 2025, key risk areas assessed include legal compliance, engineering projects, safety production, health and environmental protection, and restructuring and integration.
A monitoring and early warning indicator system for major operational risks has been established, with dynamically set alert thresholds to support timely adjustment of response strategies and enhance the foresight and effectiveness of risk prevention and control.
Internal Control
Based on the Internal Control and Risk Management Measures and the Compliance Management Measures, the company has regularly carried out annual internal control self-assessments and ongoing evaluations to accurately identify deficiencies in systems, processes, and implementation.
2025
4 deficiencies were identified and all have been rectified.
Rule of Law Culture Development
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has continuously advanced the development of a rule of law and compliance culture and has completed the seventh issue of the Rule of Law Navigator publication. The company has disseminated compliance knowledge through its official WeChat account and publicity galleries, and has organized anti-fraud campaigns as well as specialized education on intellectual property protection.
Throughout the year, the company has organized participation in group-level thematic lectures and the Risk and Compliance Cloud Lecture Series of COSCO SHIPPING Heavy Industry, covering topics such as
Identified issues have been recorded in ledgers, assigned to responsible parties, and rectified within specified timelines, forming a closed-loop management mechanism. The company has strengthened inspections in key areas and has conducted quarterly sanctions and export control reviews, while promoting the implementation of a full life cycle risk management system for projects.
In 2025, the company has further deepened digital risk control applications. For example, the application of RPA technology in the CIIP system has enabled automated verification of authorization checks, major contract reminders, and compliance clause validation.
2025
7 issues of the Rule of Law Navigator publication have been issued;
21 specialized lectures and training sessions attended.
sanctions clauses in shipbuilding contracts and the development of state-owned enterprise compliance and risk control systems, continuously strengthening the professional capabilities of relevant personnel.
Thematic Promotion of the Code of Compliance Conduct at COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd.
The company has solidly advanced the development of its compliance system and has carried out a thematic promotion activity on the Code of Compliance Conduct. Senior management has been organized to conduct centralized learning and to sign compliance commitment letters, while all departments have simultaneously carried out full-staff learning and signed commitment letters.
A total of 1,333 employees have participated in an online compliance assessment, promoting learning through examination. The company has also prepared compliance-themed short video communications to enrich compliance education formats.
Through these initiatives, the company has enhanced employees’ awareness of compliance and risk prevention and control, strengthened compliance management for key positions, reinforced the working philosophy that “business management must include compliance management,” fostered a strong compliance culture, and consolidated the compliance foundation for corporate governance and sustainable development.
“Law Promotion into Enterprises” Thematic Activity
During the 12th National Constitution Day and Shanghai Constitution Publicity Week, COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. jointly organized a thematic practical activity titled “Law Promotion into Enterprises” with multiple local political and legal institutions on December 3.
At the event site, legal consultation booths were set up, banners were displayed, and brochures were distributed. The company provided employees with information on the Constitution as well as laws and regulations related to production, operation, and daily life, guiding employees to develop the concept of “respecting the law, studying the law, abiding by the law, and applying the law.”
Business Ethics
Business Conduct Standards
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has established and improved its business conduct management system. In 2025, the company has revised the Business Entertainment Management Regulations and the Supervision and Implementation Measures for the Registration and Handover of Gifts and Cash Gifts, clearly defining standards for business vehicle use, gift-giving, and business entertainment management.
The company has strictly regulated business hospitality and gift-giving behaviors, specifying per capita standards, maximum number of accompanying personnel, and approval procedures. All hospitality-related expenditures have been subject to strict requirements of “prior approval, list-based management, and settlement per transaction.” The company has strictly prohibited the acceptance or offering of cash, securities, or valuable items that may affect fair performance of duties, thereby maintaining integrity standards in detail.
Integrity and Anti-Corruption
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has thoroughly studied and implemented the spirit of the Central Eight-Point Regulation and its implementation rules, and has deeply integrated integrity and anti-corruption work into the entire production and operation process.
The company has continuously strengthened its integrity culture, enhanced employees’ awareness of clean and honest conduct, and has promoted the integrated advancement of “not daring to corrupt, not being able to corrupt, and not wanting to corrupt,” thereby strengthening ideological defenses against corruption and building a clean and upright business environment characterized by integrity and frugality.
In 2025, the company has systematically carried out thematic education on integrity in business conduct and a series of special initiatives. Through a combination of ideological guidance, disciplinary deterrence, cultural cultivation, institutional reinforcement, full-process supervision, and long-term mechanism development, these targeted and practical measures have deeply embedded integrity principles into the company’s operational fabric.
These efforts have provided continuous “clean energy” for high-quality development and the start of the 15th Five-Year Plan, and have vividly embodied the corporate integrity philosophy of “integrity as the helm and clean governance for long-term progress.”
Ideological Guidance, Strengthening the Foundation of Integrity
Establishment of the “Clean Breeze and Integrity Charm” Advocacy Team
The advocacy team members have used integrity stories from daily life and industry warning cases as references to interpret the corporate integrity culture concept of “Integrity as the Helm and Clean Governance for Long-Term Progress.” Under a “normalized and long-term mechanism,” the team has focused on four key themes, including typical case analysis, interpretation of integrity-related regulations, sharing of integrity stories, and prevention and control of integrity risks. The team has conducted targeted on-site training across management departments, production workshops, project frontlines, and grassroots stations, delivering “point-to-point” training through thematic lectures, interactive discussions, case-based situational dramas, and integrity knowledge quizzes.
Issuance of the Integrity Education Handbook (Second Edition)
The company has distributed the Integrity Education Handbook (Second Edition) t o a l l e m p l o y e e s . T h e h a n d b o o k , c o m b i n i n g portability as a “pocket guide” and practicality as a “reference manual,” systematically summarizes the core requirements of t h e C e n t ra l E i g h t- Po i n t Regulation, includes 12
categories of common violation and disciplinary negative lists, policy Q&A, and behavioral warnings outside working hours, and clearly defines disciplinary boundaries for all positions.
Company-wide Warning Education Conference
On May 23, the company has organized the 2025 warning e d u c a t i o n c o n f e r e n c e . Through using cases around e m p l o y e e s t o e d u c a t e employees, the conference analyzed typical cases that occurred in the company over the past five years and guided Party members, cadres, and employees to strengthen ideological defenses against corruption and misconduct.
Key Performance Indicators
The “Clean Breeze and Integrity Charm” advocacy The 2025 warning education conference was held team has conducted 12 “on-site training delivery” with more than 200employees participating. sessions, covering ^ { 1 , 0 6 5 } employees.
Cultural Infiltration, Fostering an Integrity-oriented Atmosphere
“Work Style Development is Always on the Way” Thematic Exhibition
The company’s Discipline Inspection Commission, in collaboration with the Shanghai Municipal Archives, has developed the thematic exhibition “Work Style Development is Always on the Way”. A total of 19 batch visits have been organized, covering 274 person-times of middle-level managers, keyposition employees, and grassroots representatives. Through expert explanations, the concept that“work style development is no small matter” has been deeply rooted.
Integrity-themed Creative Works Collection
The company has collected 71 integritythemed creative works, including calligraphy, painting, literature, and paper-cutting. These works vividly interpret the corporate integrity culture and have created a strong atmosphere that values integrity and promotes clean conduct.
Online Quiz Activity
Leveraging the “Wenjuanxing (online survey)” platform, the company has organized an online quiz activity themed “Indepth Implementation of the Central Eight-Point Regulation and Enhancement of Integrity and Self-discipline Awareness.” A total of 1,555 valid questionnaires have been collected, promoting the shift of integrity knowledge learning from passive listening to active learning.
上海中远海运重工有限公司OSCOS NG HEAVYINDUSTRYSHANGHAI COLTD
Integrity in Employment Knowledge Competition and Thematic Speech Contest
The company has actively participated in the Integrity Discipline Commission of COSCO SHIPPING Heavy Industry-organized competition themed “Promoting Integrity and Rejecting Corruption, Upholding Clean Conduct and Integrity” and the thematic speech contest “Cultivating Integrity for Self-Discipline and Promoting Enterprise Development through Integrity.” The company has won the second prize in the team category of the knowledge competition and an excellence award in the speech contest, enhancing integrity awareness through competition-based learning.
The company has organized 52 sessions of viewing the warning education film“Anti-Corruption for the People”, covering 1,675 person-times. The company has updated 3 panels in the corporate integrity culture corridor and 12 panels in the integrity education publicity boards.
LHA
Working with Stakeholders to Build a Clean and Integrity-based Business Relationship
Learning Requirements from Higher-level Units
The company has organized 114 middle- and grassroots-level managers to participate in the integrity and clean governance briefing session organized by the higher-level authority. The session has integrated governance of “micro-corruption” and “improper eating and drinking” with policy and theoretical learning.
Integrity Cooperation Symposium with Partner Entities
The company has strengthened integrity management in procurement and optimized integrity control over subcontractors. The company has led the organization of an internal integrity cooperation symposium with affiliated entities, reaffirming the“Ten Prohibitions.” The company has urged all departments to independently organize “Integrity Cooperation Coconstruction” symposiums and has signed integrity cooperation initiative letters with partners, promoting the establishment of a business relationship characterized by “close but not overstepping, clean but not distant.”
Key Performance Indicators
32 symposiums have been held, involving 482 partner entities in exchanges and collaboration.
10 public integrity commitment letters have been signed by senior management personnel.
157 integrity cooperation initiative letters have been signed with cooperating partners.
3,874 employees have signed integrity commitment letters for clean and honest conduct.
884 employees have signed family-style integrity support initiative letters.
120 integrity commitment letters have been signed by personnel in the procurement expert database.
Immersive Warning Education Activity “Talking Integrity Inside High Walls”
On 19 September, 20 representatives of middle-level managers and key-position personnel participated in an immersive warning education activity titled “Talking Integrity Inside High Walls,” jointly organized by the company and the Hongkou Detention Center.
The participants visited the detention area on site and directly experienced the reality that disciplinary red lines must not be crossed, resulting in profound ideological impact and strong emotional reflection.
The activity also led both parties to reach an intention for integrity education cooperation featuring “resource sharing and complementary advantages,” thereby accelerating the institutionalization and normalization of warning education activities.
The company has incorporated internal audit as an important component of its corporate governance system and has fully leveraged the core functions of audit as an “economic health check,”as well as its role in“treating existing problems and preventing potential risks.” The company has established an audit supervision system featuring full-domain coverage, full-process penetration, and full-chain closed-loop management, and has strengthened integrity compliance through normalized audit supervision, thereby preventing and mitigating various integrity and operational compliance risks at the source.
For issues identified in audits, the company has established a closed-loop rectification mechanism to address deficiencies in systems, standardize the exercise
2025
The company has focused on core shipbuilding and repair operations as well as high-integrityrisk areas, and has completed 13 management audit and supervision projects.
More than 40 issues have been identified, and over 30 improvement suggestions
have been proposed.
of authority, and strengthen institutional governance. This has helped build a long-term mechanism characterized by “not daring to corrupt, not being able to corrupt, and not wanting to corrupt” from the source. Audit supervision has effectively safeguarded compliant and stable operations and contributed to a clean and upright governance environment.
At the same time, COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has established smooth and standardized whistleblowing channels, clearly defining reporting methods and acceptance procedures, and encouraging employees and stakeholders to report violations of discipline, misconduct, corruption, and fraud in an accurate and truthful manner.
Key Performance Indicators
The total number of confirmed corruption cases is 0.
The company has strictly implemented a whistleblower protection system, maintaining strict confidentiality of whistleblowers’ personal information and report contents. Any form of retaliation, discrimination, obstruction, or retaliatory pressure is strictly prohibited. The company has effectively safeguarded the legitimate rights and interests of whistleblowers and has fostered a compliance environment where supervision is encouraged, willing, and effective.
Information Security
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has established its information security management system in accordance with ISO/IEC 27001:2022 Information Security, Cybersecurity and Privacy Protection — Information Security Management Systems — Requirements, and in combination with its own operational conditions.
The company has compiled the Information Security Management Manual, clearly defining information security responsibilities for each position. It has conducted regular information security risk assessments and implemented control measures including operational control, security monitoring, compliance inspections, and security incident response. A comprehensive “system ^ + technology ^ + personnel” information security protection framework has been established to ensure stable business operations.
The company has continuously improved its information security management documentation. In the reporting year, it has newly developed 11 secondary-level procedural documents, 1 set of tertiary-level security policies, and 8 tertiarylevel management regulations, further clarifying information security objectives, management responsibilities, control measures, and operational processes, thereby providing a solid institutional foundation for standardized and systematic information security operations.
Policy
Objective
Strengthening risk management Safeguarding information security Enhancing customer confidence
Zero incidents of trade secret leakage causing business damage to the company
The cumulative annual downtime of business interruptions caused by systems and networks does not exceed 24 hours
Key Measures
Infrastructure Upgrade
The office network has been upgraded and restructured, with network layers rebuilt and topology optimized to improve operational efficiency.
· 6 . 7 8 ~ { k m } of backbone fiber-optic links have been deployed to enhance data transmission bandwidth and stability and reduce latency. The company has established the first “fiber-optic + 5 \boldsymbol { \mathsf { G } } ^ { \flat } full-domain industrial network in the ship repair industry, enabling full equipment connectivity.
IP address allocation and management have been standardized, with 2,040 IP addresses sorted out during the reporting year, resolving management challenges and ensuring stable and low-latency data transmission to the Group data center.
Security Supervision
Internal information security incidents are recorded and analyzed on a monthly basis, including incident type, occurrence time, scope, impact, and handling results. Data analysis is used to identify weak points in management, and targeted optimization measures have been implemented, such as firewall rule optimization, enhancement of intrusion detection system configurations, and improvement of data backup and recovery mechanisms. A regular vulnerability scanning and remediation mechanism has been established to identify and fix system and software vulnerabilities in a timely manner, reducing cybersecurity risks.
Daily Operations and Maintenance Management
Desktop support services have been provided with rapid response to employee needs, including software usage issues, peripheral driver installation, operating system maintenance, Group security software installation and maintenance, and user account and permission management. Data center room management has established a regular inspection mechanism, including server operation monitoring, network security device inspections, and enterprise network status monitoring and management. A regular patching and vulnerability remediation mechanism for servers has also been implemented.
2025
0 major information security incidents;
2 information security audits conducted;
55 vulnerabilities were remediated throughout the year.
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has continuously strengthened information security training and has enhanced employees’ overall security awareness, thereby reinforcing the foundation of cybersecurity protection.
In 2025, the company has actively organized its cybersecurity team to participate in national-level and group-level cybersecurity competitions and exchange activities, learning advanced technologies and management experience, and has continuously improved the company’s overall cybersecurity protection capability and industry influence.
The Chongming District Cybersecurity Awareness Week was held at COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd.
02
Green Operations： Protecting Blue Skies and Clear Waters
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. thoroughly implements Xi Jinping Thought on Ecological Civilization and unswervingly follows the path of ecological priority and green development. The Company firmly upholds the principle that “lucid waters and lush mountains are invaluable assets,” regards environmental protection as a lifeline for sustainable development, continuously improves its environmental management system, strengthens green management throughout the entire process, and promotes the coordinated advancement of energy conservation, emissions reduction, cost reduction, and efficiency improvement. Focusing on the Carbon Peak and Carbon Neutrality goals, the Company has increased investment in environmental protection, promoted cleaner production, and applied green technologies and processes. Through practical actions, the Company protects blue skies and clear waters and contributes the strength of the shipping industry to building a Beautiful China where humanity and nature coexist in harmony.
Climate change is a major challenge faced by the world. COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. attaches great importance to the opportunities and risks arising from climate change, deeply integrates climate change management into the entire business chain, actively practices green production and operations, and promotes the coordinated development of the Company with marine ecology and the global climate.
| Indicator | Unit | Data |
| ~-t (Scope 1) Greenhouse Gas Emissions | Emissions (tCOze) | 22,391.85 |
| Energy Indirect (Scope 2) Greenhouse Gas Emissions - Location-based | Emissions (tCO2e) | 41,604.27 |
| Energy Indirect (Scope 2) Greenhouse Gas Emissions - Market-based | Emissions (tCO2e) | 35,005.01 |
| Other Indirect (Scope 3) Greenhouse Gas Emissions | Emissions (tCO2e) | 3,539.81 |
Green Operations
Rooftop Photovoltaic Project Officially Connected to the Grid
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. utilized approximately 25,000 square meters of rooftop space on its comprehensive workshop, warehouses, office buildings, and other facilities to successfully construct a 3.178 MWp distributed photovoltaic power generation project, which was officially connected to the grid. The project is expected to generate more than 3.2 million kWh of electricity annually, significantly reducing the carbon emission intensity of the plant area.
Launch of the User-side Energy Storage Project at COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd.
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. launched a newly built 10 MW/20 MWh user-side energy storage project. By optimizing electricity consumption through peak shaving and valley filling, the project is expected to save approximately RMB 1 million in electricity costs annually. The project can alleviate pressure on the power grid and ensure stable electricity supply, while improving the consumption of clean energy from wind and solar sources, reducing wind and solar power curtailment, and supporting the Company's low-carbon and high-quality development.
Construction of a High-voltage Shore Power Station
In 2025, COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. invested in the construction of a 4,000 \mathsf { k V A } / 5 0 \mathsf { \Pi } \mathsf { H z } / 6 0 \mathsf { \Pi } \mathsf { H z } high-voltage shore power station and supporting facilities, achieving a stable supply of 6 { , } 6 0 0 \vee high-voltage shore power. The project has enhanced the Company's core competitiveness while promoting carbon emission reduction for vessels at berth from the source. To date, the Company has supplied a total of 723,800 kWh of high-voltage shore power to three vessels, including COSCO SHIPPING Libra, COSCO SHIPPING Gemini, and Mudan.
Green Services
2025
Methanol dual-fuel retrofitting of 4 20K and 13.8K container ships for COSCO SHIPPING Lines Methanol dual-fuel retrofitting of 5 10K vessels for SEASPAN LNG dual-fuel retrofitting of ^ 3 vessels Scrubber installation for ±b { 6 } vessels Bulbous bow modification for ^ 3 vessels
Since the successful delivery of the LNG dual-fuel special survey repair project for the Rivoli vessel in December 2024, COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has closely followed the main direction of green, low-carbon, and intelligent development, and intensively promoted a series of new energy vessel repair and retrofitting projects. Through technological breakthroughs across the entire chain and large-scale project practices, the Company has become a promoter of the low-carbon transformation of the shipping industry. From LNG dual-fuel to methanol dual-fuel retrofitting, from innovative bunkering models to upgrades of plant facilities, COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. has implemented the Carbon Peak and Carbon Neutrality goals through practical actions and established a green industrial ecosystem covering repair, retrofitting, and bunkering.
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. Completed the World's First
FPSO Project Equipped with Carbon Capture Function
On the morning of February 20, the Zhuoyue FPSO, the world’s first floating production storage and offloading unit equipped with an offshore carbon capture and storage (CCS) system, was successfully named at the terminal of COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. The platform is the world’s first FPSO equipped with post-combustion carbon capture capabilities and is also one of the most environmentally friendly FPSOs in the world, marking a milestone breakthrough for the Company in the field of high-end offshore engineering equipment retrofitting.
During the project execution, COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. completed the lifting and installation of ten topside modules with a total weight of more than fifteen thousand tons, laid more than one million meters of cables, and supported the completion of a series of engineering works, including complex commissioning. Ultimately, the project was completed one month ahead of the original schedule, with a total retrofitting period of twenty-four months, including seven months of integration work at COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd., setting a new global record for the retrofitting period of similar FPSO projects.
The Zhuoyue FPSO adopts multiple advanced emission reduction technologies, including a post-combustion carbon capture and storage (CCS) system, electrification and automation systems, a combined-cycle power generation system, seawater turbine generators, steam generators, hydrocarbon cargo tank inerting systems, and an integrated enclosed flare system. Among them, the CCS system captures carbon dioxide from the exhaust gas generated after gas turbine combustion, reducing carbon emissions by approximately 2 7 % . Based on the vessel’s crude oil production capacity, it is expected to reduce CO₂ emissions by approximately two hundred thirty thousand tons annually, equivalent to the annual carbon dioxide absorption capacity of one hundred ten thousand mu of forest. The area is equivalent to twenty Shanghai Dongping National Forest Parks or ten thousand two hundred seventy-two standard football fields.
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. Completed the World's First FPSO Project Equipped with Carbon Capture Function
世界首艘，来了！
春节健期刚过，一批节能减排的重点工程陆续取得新进展。近日，在上海市长兴岛的上海中远淘运重工码头，世界上第一艘安装碳排集和封存设备的海上浮式生产储油船建造完毕，计划于本月底交付使用。
这船长333米，寬60米，日产原油量可达12万桶，而它的独特之赴在于，它不仅能縛集航行和生产过程中产生的二氧化碳，还能利用康气热能发电，实现环保与节能的双重日标。这一接术的应用，标志着我国在海上捕集领域法出了重要一步。
中国韵闲網 园①0
全球首艘具有碳捕集功能的FPSO在沪命名
中新社上海2月20日电（记者缪璐）全球首艘安装海上碳捕集和封存(CCS)装置的AgogoFPSO（海上浮式石油生产存储平台）20日在上海长兴岛命名，并将于本月底交付开航。该项目是全球第一个具有燃烧后碳捕集功能的FPSO。
世界首艘！来了！
近日，在上海市长兴岛的上海中远海运重工码头，世界上第一安装碳插集和封存设备的海上浮式生产储油船肆造完毕，计划于本月底交付使用。
这艘船长333米，宽60米，日产原油量可达12万桶。而它的独特之处在于，它不仅能指集航行和生产过程中产生的二氧化碳，还能利用废气热能发电，实现环保
COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd. Completed the Nation's First Ship-to-Ship Zero-emission LNG Bunkering for a Dual-fuel Vessel
In June 2025, the CMA CGM Saadé completed shipto-ship LNG bunkering at COSCO SHIPPING Heavy Industry (Shanghai) Co., Ltd., receiving liquefied natural gas for the 23,000-TEU-class vessel. The repair project covered four major areas, including LNG fuel system maintenance, ballast water system upgrades, wind deflector installation, and silicone hull coating application. The fuel system maintenance involved rigorous procedures such as aeration, inerting, natural gas replacement, and tank cooling treatment. Through comprehensive safety management throughout the entire process, zeroemission bunkering was successfully achieved.
Methanol Dual-fuel Retrofitting Projects Contributing to Emission Reduction
Case 1: COSCO SHIPPING Libra Successfully Berthed
The project marked the entry of the methanol dualfuel retrofitting project into the critical single-vessel construction stage. The project covered upgrades to core systems, including the main engine, auxiliary engines, and fuel system. Upon completion of the retrofitting, the vessel's carbon emission intensity will be significantly reduced, effectively enhancing its green operational capability and competitiveness in the global market, and contributing to the lowcarbon transformation of the shipping industry.
Case 2: COSCO SHIPPING Gemini Officially Delivered and Commenced Operations in October 2025
As a benchmark project of the same series as COSCO SHIPPING Libra, the vessel has achieved comprehensive optimization and upgrades by drawing on the successful experience of the first-built vessel, demonstrating the Company's mature capabilities in the field of green power retrofitting for large container ships and contributing to the low-carbon transformation of the shipping industry.
Case 2: COSCO SHIPPING Gemini Officially Delivered and Commenced Operations in October 2025
•Optimization of construction plans to improve efficiency: The project team used the retrofitting experience of COSCO SHIPPING Libra as a reference, coordinated with construction method and workshop departments, and refined the upgrade and dismantling plans. During key structural modification processes, 60-ton and 40-ton gantry cranes were used simultaneously. Compared with the single-equipment operation of COSCO SHIPPING Libra, this significantly improved dismantling and lifting efficiency. The old structures were dismantled and transferred to the ground in batches, improving site resource utilization and ensuring subsequent construction operations.
•Innovation of key processes to reduce risks and verify reliability: Methanol bunkering continued to adopt the “truck ^ + vessel” combined process, with optimized operation procedures. The bunkering time was reduced by four hours compared with COSCO SHIPPING Libra, and the ship-to-ship connection commissioning was successfully completed in one attempt. The propulsion system commissioning was upgraded, the auxiliary engine operation time was advanced, and the main engine trial operation was successfully completed in one attempt.
Improvement of Green Service Special Skills
The Hull Workshop organized department supervisors to carry out special training on methanol dual-fuel retrofitting projects.
