SustainabilityReport

2024

SF Holding

SustainabilityManagement

Declaration from the Board of DirectorsESG GovernanceESG Policy StatementStakeholder EngagementMateriality Assessment

About SF

SF CultureAwards for Sustainable DevelopmentESG Ratings PerformanceAnnual Progress on UN SustainableDevelopment Goals (UNSDGs)

Governance

Fortifying Sustainable Governance for Long-Term Resilience

EnvironmentPioneering Low-Carbon Logistics to Power aGreen Transformation

Creating Green LogisticsPromoting Circular EconomyPractice Green OperationSafeguarding Ecological EnvironmentsAddressing Climate Change

Standardize Corporate GovernanceStrengthen Risk Control ManagementAbiding by Business EthicsEnsuring Information Security

Social

Fostering a Responsible Logistics Ecosystemthrough Mutual Benefit and Symbiosis

Construction of Talent TeamProtecting Employees’ Rights and InterestsStand Firm on the Frontline of SafetyStable and Safe ProductionBuilding a Responsibility Value ChainSustaining Commitments to Social Wellbeing

Services

Empowering New-Quality ProductivityThrough Digital Intelligence

Pioneering Intelligent Logistics InnovationEmpowering Enterprises Expanding OverseasDelivering Premium ServicesSecuring Safety DeliveryDriving Industry Synergy and Shared Progress

Appendices

About the ReportAssurance StatementPolicy ListKey Performance IndicatorsSustainability Report Content Index

CONTENTS

About SFAppendicesSustainability ManagementGovernanceEnvironmentSocialServicesSF Holding 2024 Sustainability Report

About SF

Focusing on its logistics ecosystem, SF has continually enhanced its portfolio of productand service capabilities, and has expanded to cover time-definite express, economyexpress, freight, cold chain and pharmaceutical logistics, intra-city on-demand delivery,international express, international cargo and freight forwarding, and supply chain, toprovide customers with domestic and international end-to-end one-stop integrated logisticsservices. Meanwhile, leveraging its leading technology and research and developmentcapabilities, the Company is committed in building a digitalized supply chain ecosystem,empowering clients with technology to create secure and efficient digital supply chainsystems. SF aspires to be the well-respected and the world’s leading digital intelligencelogistics solution provider.The Company has adhered to sustainable and healthy development through visionary andforward-looking strategic planning. For the past 32 years, the Company has accuratelyseized opportunities to expand its scale, maintain industry leadership, and has becomethe leading logistics company in China and Asia. The Company was ranked 415th onthe FortuneGlobal 500. The Company’s flagship product, time-definite express, hasdominant market leadership in China, and through leveraging the network resources andcapabilities for its time-definite express, the Company has rapidly and efficiently expandedinto new logistics service sub-segments, covering from small parcels to bulk and heavycargoes, from standardized express delivery to customized supply chain services, andfrom China to Asia and further to the world. The Company is the market leader in China

across five logistics sub-segments including express, freight, cold chain, intra-city on-demand delivery

and supply chain

, and the market leader in Asia

across four logisticssub-segments including express, freight, intra-city on-demand delivery

and internationalbusiness

in Asia.Looking ahead, the Company is committed to becoming the leading global logisticscompany connecting Asia and the world. While continuously solidifying its leadershipposition in the Chinese market, the Company continues to expand its market influenceacross Asia and globally, rapidly replicate its proven domestic know-how to overseasnetworks. Leveraging its well-recognized brand, leading cost advantages and integratedlogistics service capabilities, the Company expands the international market, drives thesustainable and healthy growth of business, so as to become the go-to logistics partnerof global business customers and retail customers to foster shared-growth and createenduring value together.

SF Holding is the largest integrated logisticsservice provider in China and Asia, and thefourth largest in the world.

A leading enterprise in the logisticsindustry in China and Asia and hasranked

th inthe Fortune

Global

list

Leadership

Premium BrandExtensive Scale

“

”

Largest in Asia

No. 1 in Asia

Express, LTL Freight, Intra-city On-demand Delivery

,International Business

4th Largest Globally

Integrated logistics service provider

No. 1 in China

Express, LTL Freight, Cold chain,

Intra-city On-demand Delivery

,Supply chain

No. 1

Customer Satisfaction for express

services in China

15 years in a row

According to Frost & Sullivan Report, in terms of revenue in 2023

Among third-party intra-city on-demand delivery service providers

Among non-state-owned independent third-party supply chain solution providers

Among the integrated logistics service providers in Asia

SF CultureSF culture represents the unique spiritual wealth and material forms that have been developed by SF through its production,operation, and management activities. At its core are the Company’s vision, core values, SF spirit, and three key conceptsrelated to business management, management practices, and talent management. These elements collectively embody thefundamental characteristics of SF’s corporate personality and serve as the soul of the Company’s survival, competition,and sustainable development.

Corporate Vision

Become a globally respected and leading provider of digital intelligent logistics solutions

Core Values

SF Cultural Framework Model

Corporate

Vision

Business philosophy, Managementphilosophy, Employment philosophy

Become a globally respectedand leading provider of digital

intelligent logistics solutions

Professional andDedicated Service SpiritSelf-Critical Learning SpiritPioneering Innovation SpiritCustomer FirstIntegrity as the Guiding PrincipleLove-oriented

Core ValuesSF Spirit

Customer FirstIntegrity as theGuiding PrincipleLove-Oriented

Customer needs are the “source of innovation” for the company, which strives to deliverproducts and services that exceed customer expectations.Integrity as the guiding principle is the company’s “foundation for enduring success,” servingas both a moral standard and a business strategy.Being love-oriented is the company’s “source of value creation,” and we must consistentlyenhance the employee experience.SF Spirit

Professional and Dedicated Service Spirit

Pursue professionalism, maintain focus, and deliver warm, high-quality, and value-driven services to customers.Self-Critical Learning SpiritAddress all issues by rst examining one's own shortcomings, take responsibility without shirking, face challenges head-on, continuously engage in self-reection and correction, and achieve personal growth.

Pioneering Innovation Spirit

Proactively embrace change, dare to innovate and break through, and avoid being conned to old models.

About SFAppendicesSustainability ManagementGovernanceEnvironmentSocialServicesSF Holding 2024 Sustainability Report

Awards for Sustainable Development

Fortune2024 Fortune Global 500 (listed for 3

consecutive years)2024 FortuneMost AdmiredChinese Companies(listed for 8consecutive years)2024China ESG Influential Listing(listed for 3 consecutive years)

Brand FinanceTop 500 Most Valuable Brands in2024 (listed for 5 consecutive years)Top 10 Most Valuable Logistics

Brandsin 2024 (listed for 6consecutive years)

Top 10 Logistics Brands bySustainability Perceptions Value

in 2024

Forbes

2024China ESG 50

State Post BureauExpress delivery service ranksfirst in public satisfactionin thefirst three quarters

of 2024No. 1 in express delivery servicesatisfactionin 2023 (15 consecutive

years)

China Association for Public Companies

Best Practices for Sustainabilityof Listed Companiesin 2024(3 consecutive years)Best Practices for Board ofDirectors of Listed Companiesin2024 (2 consecutive years)

China Communications andTransportation Association

Typical Cases of China’s

Green Logistics ESGPractice Pioneersfor 2023-2024

Sina Finance

2024 China ESG “Golden

Responsibility Award” – Best

Corporate Governance (G)

Responsibility Award

Securities Market Weekly

Best ESG-Managed Listed

Companies in 20242024ESG “Golden DawnCorporate Governance Award”

2024 ESG “Golden Dawn

Leadership Award”

Securities Star

2024 Most Socially

Responsible Listed

Company

2024 ESG New Benchmark

Enterprise Award

2024 ESG Investment Value

TOP 100 List

Gelonghui

The 6th Gelonghui Golden Award –

Annual ESG Pioneer Award

Philanthropist of China

2024 China Charity Gala

“Institution of the Year”

(SF Foundation)

Hong Kong ESG Reporting

Awards (HERA)

2024HERA ESG ReportingExcellence Award

As of the disclosure date of this report, the 2024 Courier Service Public Satisfaction Survey data has not yet been released.

ESG Ratings Performance

International ESG Ratings

MSCI rating of BBB for threeconsecutive years (2022-2024)

CDP Climate Change QuestionnaireRating B for three consecutive years

(2022-2024)

Sustainalytics’ latest ESG Risk Rating

is “Low Risk”

Included in theFTSE ESG Index seriesfor four consecutive years (2021-2024)

Domestic ESG Rating

AAA

CNI ESG Ratings

AA

CSI ESG Assessment

AChina HuaZheng ESGRatings

ASynTao Green FinancialESG RatingAWind ESG Ratings

ACCX ESG Ratings

About SFAppendicesSustainability ManagementGovernanceEnvironmentSocialServicesSF Holding 2024 Sustainability Report

Annual progress on UN Sustainable Development Goals (UNSDGs)

The SF Lotus Education Aid Program has covered 67 counties (cities, districts) in 18 provinces(autonomous regions, municipalities) across the country, funded a total of 41,918 students inneed, and distributed scholarships and grants of RMB260 million.The SF Care Program has invested a total of RMB481 million to help 24,259 seriously ill childrenand orphans in distress, and provide humanistic care services to 40,806 children, families andmedical staffs.Provided emergency support for typhoon relief in Hainan and earthquake relief in Xizang,leveraging our transportation resource advantages to swiftly deliver essential and reliefsupplies to the disaster areas.Provide approximately 9,000 female employees with free health screenings for cervical andbreast cancer.The SF Liangshan Charity Class Program funded 234 students in distress across 4 classesthroughout the year. To date, a total of 25 Love Classes has been established, providing supportto 1,410 children and girls in distress.There are 2 female directors on the board of directors, accounting for 28.6%More than 40,000 new energy vehicles have been placed in service, with a servicecoverage of 253 cities.First commercial trial flight of a domestic all-cargo aircraft using Sustainable AviationFuel (SAF).Constructed rooftop photovoltaic power stations in 24 industrial parks, with over 111MW total installed capacity. Annual renewable energy generation exceeds 70 millionkWh, and clean energy usage surpasses 42 million kWh.Comply with international human rights and labor standards, implement thetenprinciples of the United Nations Global Compact, and integrate human rightsprotection into the entire business operation process.Formulatethe Statement on Employees Rights and Protectionto implement therequirements of eight international conventions, including equal pay for equal work,prohibition of child labor, elimination of employment discrimination, prohibition offorced labor, and occupational safety and health.SF’s agricultural supply network spans over 2,800 county-level cities nationwide,covering over 5,500 fresh product varieties.

6.3 million tons of specialty agricultural products were transported throughout the year,

projected to generate over RMB100 billion rural income.Investment in science and technology R&D amounted to RMB3.09 billion4,180 patents in force or pending, with invention patents accounting for 61.5% of the totalA finalist for the 2025 Franz Erdmann Prize – often referred to as the “Nobel Prize” of industrialengineering – and the sole Chinese representative in the final stageRespect cultural differences in different regions, strictly prohibit any form of discrimination,and are committed to creating a diverse, equal, and inclusive workplace environment foremployees worldwide.

15.1% of female workforce; 5.8% of ethnic minority workforce

Since KLN (Kerry Logistics Network Limited, which is currently in the process of changing its name to KLN Logistics Group Limited)has already formulated and announced its carbon targets, and there are differences in business models between SF and KLN, thislong-term target does not include KLN. KLN is a company listed on the Main Board of the Hong Kong Stock Exchange (Stock Code:

0636.HK) and is a holding subsidiary of the Company.

The carbon efficiency data presented here pertains solely to SF, excluding KLN.

Successfully completed the batch replacement of about 47 million “Double E” packaging bags in Beijing, promoting the large-scale

implementation of circular economy.Smart recycling bins have been placed in 15 operation sites in Shenzhen, and a total of 3,905 kg of waste materials have been recycled.Issued theSF Supplier Code of Conduct, incorporating ESG requirements such as business ethics, safety and occupational health, laborand human rights, and environmental protection into the terms of supplier contracts, and regularly reviewing supplier performance.Designed and published theSupplier Sustainability Survey Questionnaireto continuously advance environmental and socialresponsibility practices throughout the supply chain.Evaluated 1,422 key suppliers, conducted on-site audits of over 1,392 suppliers, with an audit pass rate of 91.3%.Through packaging reduction measures, reduced approximately 42,000 tons of paper and 155,000 tons of plastic,

achieving a carbon emission reduction of about 192,000 tons.Deployed 19.18 million recyclable packaging containers, with over 1 billion cycles, reducing carbon emissions by

around 472,000 tons.Give priority to purchasing energy-saving, water-saving, and material-saving environmentally friendlyproducts and services to reduce resource consumption and environmental pollution, and to promote the

implementation of the green procurement concept.Carbon Target White Paper

set out the commitment to achieve a 55% improvement in carbonefficiency by 2030 compared to 2021, and a 70% reduction in the carbon footprint of each parcel

compared to 2021.In 2024, SF achieved a carbon efficiency of

41.2 tCO

e/million revenue, representing a 15.2%improvement compared to the carbon target baseline year (2021). And the carbon footprint per parcel

was 709.9 gCO

e, a decrease of 17.5% compared to the carbon target baseline year (2021).By advancing low-carbon transportation, creating green industrial parks, developing sustainablepackaging, and exploring green technology applications, SF reduced greenhouse gas emissions

by 2,972,306 tCO

e in 2024.More than 1,647 acres of carbon-neutral forests have been planted in Hebei and Sichuan, witha total of more than 1 million trees planted. It is expected to absorb more than 200,000 tons of

carbon dioxide in the future growth processLaunched the “Special Conservation Project of Biodiversity of White-lipped Deer” in the

Nianlong Provincial Nature Reserve in Ganzi Prefecture, Sichuan ProvinceThe Board has three independent non-executive directors with different industry backgrounds,

representing more than one-third of the Board members.Formulate and publishSF Code of Business Conduct, Statement on Anti-Corruption and

Statement of Conflict of Interest.In the past three years, the Company’s internal operation premises audit (including business ethics audit)

coverage rate was 100%.The signing rate of suppliers’the Integrity Agreement reached 100%.Joined the Universal Postal Union Consultative Council (UPUCC), becoming a key participant in policy formulation and rule

discussions in the global postal sectorJoined the Global Sustainable Transport Innovation Alliance (GSTIA) to collaboratively build an international platform for sustainable

transport innovation and cooperation with fellow membersAs a co-founder of the China Logistics ESG Synergy Alliance, we collaborate with upstream and downstream enterprises in the

industry chain to jointly explore and establish ESG standards and practice paths with Chinese logistics characteristics

SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Sustainability

Management

SF is committed to integrating corporate value with social value,nurturing a vision to drive sustainable industry development, and activelyexploring the path of corporate sustainability. SF continuously improvesits sustainable development management system, actively integrating ESGprinciples into every aspect of its value chain, enhancing its sustainabledevelopment capabilities and business resilience, and achieving long-termvalue creation.

Declaration from the Board of Directors ESG Governance ESG Policy Statement Stakeholder Engagement Materiality Assessment

About SFSustainability ManagementGovernanceEnvironmentSF Holding 2024 Sustainability ReportAppendicesSocialServices

1110SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Declaration from the Board of DirectorsThe Board of Directors and all directors solemnly declare that the contents of this report are true, accurate, and complete,without any false records, misleading statements, or significant omissions. The Board also makes the following statementsregarding its ESG supervision and management work.ESG Management FrameworkThe Board closely monitors major global ESG trends and changes in the domestic and international macroeconomicsituation. It actively communicates with stakeholders and, in line with the Company's current strategic plan, accuratelyidentifies ESG-related risks and opportunities. The Board updates its ESG management approach when necessary toensure that SF's ESG philosophy remains aligned with evolving standards.

ESG Risk ManagementThe Board places a high priority on the management of ESG-related risks, actively engages with stakeholders tounderstand their concerns, and systematically evaluates, analyzes, and prioritizes ESG issues to identify relevant risksand opportunities. Management policies and strategies are reviewed and updated as necessary to align with evolvingESG standards and best practices. SF has integrated ESG-related risks, including climate change, into its corporaterisk assessment framework. The Company conducts regular risk identification and assessment exercises, and developsand implements corresponding risk mitigation measures to ensure effective management of these risks. For a detaileddiscussion on risk management and internal control, please refer to section "Governance Chapter: Strengthen RiskControl Management" in this report. For specific information on climate change risk management, please refer to section"Environment Chapter: Addressing Climate Change".ESG Goal Setting and Progress ReviewThe Board of Directors is responsible for overseeing and managing the Company's sustainable development initiatives.It sets strategic objectives, defines key focus areas, and determines the direction for core sustainable developmentactivities. The Board also supervises and guides the implementation of ESG initiatives to ensure that ESG governanceis fully integrated into the Company's strategic development. Members of the Sustainability Leadership Group, which isunder the Board's Strategy Committee, have their remuneration linked to ESG performance. Going forward, the Boardwill continue to enhance the Company's ESG management framework. This includes regularly reviewing progressagainst ESG targets, actively addressing the concerns of stakeholders, and continuously improving the overall ESGgovernance levels.

ESG Governance

SF integrates ESG principles into its corporate development strategy, establishing a scientific and professional ESGmanagement system and a clear and transparent ESG governance structure. Meanwhile, it comprehensively implementsthe ESG-related strategies to support the sustainable development of the Company’s business.

ESG Policy StatementIn 2024, SF enhanced its ESG policy framework and introduced several new sustainability policies.DimensionPolicyGovernance

SF Code of Business ConductStatement on Anti-CorruptionStatement of Conflict of InterestBoard Diversity PolicySociety

Statement on Employees Rights and ProtectionSF Supplier Code of ConductEnvironmentEnvironmental Policy

1312SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Stakeholder EngagementSF places a high priority on stakeholder engagement, establishing diversified and efficient communication channels tailoredto the priorities of each stakeholder group. These channels ensure that nine key stakeholder groups, including regulators,customers, employees, investors, and value chain partners, receive timely and accurate information on an ongoingbasis, thereby normalizing and enhancing the transparency of communications. Additionally, SF integrates stakeholderexpectations and concerns into its strategic planning and daily operations, regularly reviewing the significance of variousissues within the company’s operations and development.Main Stakeholder Groups

Main Concerns

Main Channels for

Communication

Response Measures

Regulatory Agencies

Compliance Operations Tax payment according to law Building Integrity

Information Disclosure Policy Implementation Institutional inspection

Operate in full compliance with laws

and regulations Prevent major safety accidents Enhance local employment ratesActively advance industrial poverty

alleviation

Customers

Safety Delivery Protection of Consumer Rights Customer Privacy Protection Responsible Marketing

Customer Research Customer Hotline Customer Satisfaction Survey

Deliver efficient, reliable, and rapid

logistics services Enhance the customer claims process Build a safety ecosystem

Employees

Protection of employees' rights

and interestsEmployee Development and

Training Employee Care Occupational health and safety

Employee Communication

Channels Employee satisfaction survey Employee Meeting Employee activities

Protect employees' rights in accordance

with the lawConduct a variety of training

programs activelyRefine the mechanisms for talent

promotion and compensationStrengthen occupational health and

safety management Implement diverse employee benefits

Shareholders and

Investors

Return on investment Corporate Governance ESG Management

General Meeting of Shareholders Announcements and Circulars Investor Roadshow

Establish and refine a robust

decision-making and oversight

mechanismEnhance risk management and

control Ensure effective information disclosureOrganize activities targeting different

types of shareholders

Directors, Supervisors and

Senior Management

Corporate Governance Compliance Risk Sustainable Operations

Regular Board Meetings

Regular ReportingOperate in full compliance with laws

and regulationsEnhance risk management and

controlSuppliers

Sustainable Procurement Integrity and Honesty Industry Cooperation

Supplier Conference Supplier Training Industry Communication

Conduct transparent procurement

practices Eliminate commercial bribery

Community

Public Charity Community Development Rural Revitalization

Provision of employment Industrial assistance Volunteer service Public welfare activities

Engage through official platforms

such as websites Conduct regular visits

Industry Associations

Strengthen Communication and

Cooperation Industry Standard Development

Convening Summit ActivitiesOrganize technological

communication

Participate in industry exchange

activitiesLead in the development of industry

standards

Media/the Public

Information disclosure Interact with the media

Information DisclosureEstablish a communication

mechanism

Actively communicate through

official platforms such as websitesProvide external communication

materials

Materiality Assessment

Materiality management serves as the foundation and core for the Company to identify and evaluate ESG risks, impacts,and opportunities, and to formulate ESG strategic plans in a scientific manner. It is essential for advancing sustainabledevelopment initiatives. To review objectives, commitments, policies, management strategies, practices, and performancerelated to sustainable development, and to address stakeholder concerns regarding the Company’s sustainability efforts,SF conducts an annual materiality assessment. This process combines questionnaire surveys and on-site interviews toidentify and update key ESG issues, which are then fully integrated into the Company’s operational management. Thisapproach ensures continuous enhancement of the Company’s sustainable development management and practices.In 2024, SF implemented a double materiality assessment for the first time, in accordance with theSelf-RegulatoryGuidelines for Listed Companies No. 17 – Sustainability Report (Trial)and theSelf-Regulatory Guidelines for ListedCompanies No. 3 – Preparation of Sustainability Reportissued by the Shenzhen Stock Exchange. This assessmentexpanded upon the existing impact materiality evaluation by incorporating a financial perspective, thereby conductinga comprehensive analysis of the materiality of ESG issues to the Company. The material issues identified through thisprocess are addressed within this report.Double Materiality Assessment Process

Step 1

BackgroundAnalysis and IssueIdentication

In the process of reviewing and updating the list of ESG issues for the year, the Company strictly adheredto the provisions of theSelf-Regulatory Guidelines for Listed Companies No. 17 – Sustainability Report(Trial)issued by the Shenzhen Stock Exchange. The Company comprehensively considered various factors,including macroeconomic and policy environment, ESG information disclosure standards, internationalsustainability initiatives, capital market ESG rating requirements, industry best practices in ESG, and theCompany’s development strategies. Based on these considerations, the Company expanded the ESGissue list by adding nine new issues to the 17 identified in 2023 and optimized the wording of existingESG issues. This resulted in a comprehensive list of 26 ESG issues, which provides clear guidance anddirection for the Company’s sustainable development.

TopicESG Issues of 2024Changes from the Previous Year

Environment(Total: 9 Issues)

Addressing Climate Change Pollutant Emissions Management Waste Management Ecosystem and Biodiversity Conservation Environmental Compliance Management Energy Utilization Water Resource Management Circular Economy Green Packaging

Split “Emission management” into “Pollutant Emissions

Management” and “Waste Management”.Added the topics of “Ecosystem and Biodiversity Conservation,”

“Environmental Compliance Management,” and “Water Resource

Management”.Revised the topic of “Energy Management and Carbon Emission

Reduction” to “Energy Utilization”.Split the topic of “Green Packaging and Resource Recycling” into

“Circular Economy” and “Green Packaging”.

Social(Total: 12 issues)

Rural Revitalization Social Contribution Innovation-Driven Development Ethics in Science and Technology Supply Chain Security and Resilience Equal Treatment of Small and Medium-

sized Enterprises (SMEs)Product and Service Safety and

Quality AssuranceData Security and Customer Privacy

Protection Employee Diversity and Inclusion Safety Delivery and TransportationBuilding a Green and Intelligent

Industrial Chain

Split “Rural revitalization, charity and volunteering” into “Rural

Revitalization” and “Social Contribution”.Added “Innovation-Driven Development,” “Ethics in Science and

Technology,” and “Equal Treatment of SMEs”.Revised the topic of “Product and Service Optimization” to “Product

and Service Safety and Quality”.Revised the topic of “Sustainable Supply Chains” to “Supply Chain

Security and Resilience”.Merged the topics of “Occupational Health and Safety

Management,” “Employee Training and Development,” “Employee

Welfare and Care,” and “Respect and Guarantee of Human Rights”

into the topic of “Employee”.Reclassified the topic of “Data Security and Privacy Protection”

from the Governance scope to the Social scope.Governance(Total: 5 issues)

Due diligence Stakeholder Engagement Anti-Commercial Bribery and Anti-

Corruption Anti-Unfair Competition Corporate Governance

Added the topics of “Due Diligence” and “Stakeholder Engagement”.Split and revised the topic of “Anti-corruption and Business Ethics”into “Anti-Commercial Bribery and Anti-Corruption” and “Anti-UnfairCompetition”.

1514SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Step 2

The Company has established an assessment process to identify, analyze, and evaluate the potentialimpacts, risks, and opportunities associated with ESG issues, forming the basis for materialityassessment.

Step 2-1: Impact Materiality Assessment

SF conducted a quantitative assessment of the environmental, social, and governance impacts of variousESG issues on a scale of 1 to 5 through questionnaire surveys, inviting both internal and externalstakeholders to participate. Additionally, SF engaged in interviews with key stakeholders to evaluatethe likelihood of the impacts associated with each ESG issue. The impact importance scores for eachESG issue were determined through a comprehensive analysis of the quantitative assessment resultsand interview findings.Dimension 1: Impact AssessmentSF conducted an impact assessment of the influence of ESG issue management through a questionnairesurvey, consulting both internal and external stakeholders. The assessment dimensions comprehensivelyconsidered the scale, scope, and irreversibility of the impact.Dimension 2: Likelihood AssessmentSF’s sustainable development working group, in collaboration with external ESG experts, assessed thelikelihood of the impacts associated with each ESG issue.

Step 2-2: Financial Materiality AssessmentUnder the guidance of external ESG experts, the Company’s sustainable development working groupassessed the financial materiality of various ESG issues from two dimensions: “Continuity of ResourceUse” and “Dependence of Relationships”.Dimension 1: Continuity of Resource UseFrom the perspective of ensuring the Company’s normal operations, the likelihood and magnitude of theimpact of ESG issues on the Company’s profits were assessed over the short, medium, and long term.Dimension 2: Dependence of RelationshipsIn accordance with the objectives of maintaining good relationships with external stakeholders andsupporting the Company’s long-term development, the Company assessed the potential likelihood andmagnitude of the impact of the management of various ESG issues on its profitability during the reportingperiod, as well as over the short, medium, and long term.

Step 3Prioritization ofMaterial Issues

Based on the assessment results from Step 2, the Company conducted a double materiality analysis todetermine the priority ranking of material issues for the year 2024 and developed a materiality matrix. Inevaluating the “Energy Utilization” issue, the Company considered that the energy structure is undergoingan accelerated transition and that the Company’s continuous operations are highly dependent on energy.Both energy utilization and energy transition are anticipated to have a profound impact on the Company’slong-term strategy, operational performance, and cost management.Regarding the “Climate Change Mitigation” issue, the adoption of green and low-carbon logisticsmodels presents significant opportunities for the Company. Accelerated transformation is necessaryto better capture market opportunities. Therefore, in accordance with the Company’s defined thresholdfor financial materiality, both “Energy Utilization” and “Climate Change Mitigation” are deemed to befinancially material.

2024 Double Materiality Analysis Matrix

Step 4Analysis and

Reporting

The materiality matrix is reviewed and confirmed by the Strategy Committee of the Board of Directorsand is subsequently reported and disclosed. The Company conducts an analysis and assessment ofthe impacts, risks, and opportunities associated with the top five material issues, based on their priorityranking. The management measures and practical outcomes related to these issues are highlighted inthe relevant sections of this report.

EnvironmentalIssuesSocial IssuesGovernanceIssues

Financial Materiality

Impact Materiality

Moderate ImportanceSecondary ImportanceMaterial Importance

Innovation-DrivenDevelopmentData Security and Customer PrivacyProtectionSafety Delivery andTransportation

CorporateGovernance

Employee

Addressing ClimateChange

Energy UtilizationBuilding a Green and IntelligentIndustrial ChainCircularEconomy

Green PackagingPollutant EmissionsManagementDiversity and Inclusion

Supply ChainSecurity andResilienceEthics in Scienceand Technology

Ecosystem andBiodiversity ConservationEqual Treatment of SMEs

Due diligenceWater ResourceManagement

Environmental ComplianceManagementStakeholder Engagement

Waste Management

SocialContributionRuralRevitalizationAnti-Commercial Bribery andAnti-Corruption

Product and Service Safety andQuality Assurance

Moderate ImportanceSecondary ImportanceMaterial Importance

Anti-Unfair Competition

1716SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Materiality

Priority

TopicESG Key Issue

Location in theValue Chain

Related Stakeholders

ImpactsRisksOpportunities

Disclosure Location ofManagement and Practices

Environment

EnergyUtilization

DirectOperations

Regulatory AgenciesCustomersSuppliers

The energy consumption structure of the logistics

industry directly impacts operating costs and theprogress of carbon emission reduction. Policypressures and oil price fluctuations drive the large-scale adoption of new energy technologies, acceleratethe electrification of transport vehicles, and enhancethe layout of clean energy networks. These measurescollectively promote the industry's transition towardsgreen and intensive development.

Fluctuations in traditional fuel costs have intensified

operational uncertainty, while the pressure fromcarbon emission reduction policies has driven uptransition investment. The rapid iteration of newenergy technologies demands ongoing capitalexpenditure, which somewhat increases the pressureon operating costs.

The Company continues to enhance its energy

utilization efficiency and reduce energy coststhrough applications such as new energy vehiclesand photovoltaic power generation. Its green logisticscapabilities will help expand customer bases inlow-carbon-sensitive sectors, including high-endmanufacturing and cross-border e-commerce.The first-mover advantage in carbon managementtechnology enables the Company to lead thedevelopment of industry green standards and drivethe shift of logistics service premiums from a focuson timeliness to one on sustainability.

Practice Green Operation

Environment

AddressingClimateChange

DirectOperationsDownstream

CustomersEmployees

The increasing frequency of extreme weather

events has heightened the risk of logistics networkdisruptions and intensified the volatility of operatingcosts. Global carbon tariffs and emission reductiontargets are accelerating the low-carbon transitionof transportation vehicles, compelling the companyto expedite the deployment of new energy vehiclesand clean energy infrastructure. Meanwhile, climateresilience has emerged as a core indicator of supplychain performance, spurring innovation in low-carbonlast-mile delivery models. These developmentsdirectly influence customer choices and drive theiteration of industry service standards.

The increasing frequency of extreme weather events

exacerbates the risk of logistics network disruptions.Hurricanes, floods, and other natural disasterslead to fluctuations in transportation timeliness andrising costs associated with infrastructure damage.Meanwhile, carbon tariffs and mandatory emissionreduction targets may necessitate increasedinvestment in transforming green logistics models.

Investing in climate adaptive technologies can

enhance supply chain resilience. Green logisticssolutions attract ESG investment funds and high-endcustomers. The deployment of new energy vehiclesand photovoltaic industrial parks helps seize the low-carbon logistics niche, converting climate governancecapabilities into dual benefits in pricing power andmarket share.

Addressing Climate Change

Social

Data Securityand Customer

PrivacyProtection

DirectOperations

Regulatory Agencies

CustomersEmployees

In the digital transformation of the logistics

industry, data security and privacy protection havea direct impact on the company's operational riskmanagement and the foundation of customer trust.With the tightening of global privacy regulations, thisissue has become both a core element of corporatecompetitiveness in meeting compliance challengesand a key driver of technological upgrades andecological collaboration within the industry. Theincreasing prioritization of data security by customersis compelling the industry to reshape its servicestandards.

The Company has accumulated a large amount

of data over many years of operation. Despitehaving established a series of data security controlmechanisms, certain data security risks remain. Ascustomers' awareness of privacy protection growsand regulatory requirements for the standardization ofdata processing activities become stricter, companiesholding personal information inevitably face privacycompliance risks.

Data security and privacy protection technologies can

be leveraged as differentiated service advantages.Benefiting from its leading position and substantialtechnological accumulation in the logistics industry,the company has established a robust datasecurity management system and constructed acomprehensive, full-process data security protectionframework to safeguard customer privacy and dataintegrity.

Ensuring Information Security

Social

Innovation-

DrivenDevelopment

DirectOperationsDownstream

CustomersEmployees

Technological innovation in the logistics industrycontinues to reshape service efficiency and the valuechain. Breakthroughs and iterations in automationand digital technologies are accelerating industrydifferentiation and driving traditional logistics towardsan intelligent and low-carbon ecosystem.

High investment in innovative technology R&D

may intensify short-term financial pressure, whilethe uncertainty of the R&D cycle may heightenoperational risks. Accelerated technology iterationdrives industry differentiation. If unable to form atechnology moat or if R&D outcomes do not supportenhanced business capabilities, this will directly affectthe company's market competitiveness and long-termdevelopment.

The Company places a strong emphasis on R&Dinvestment, accurately seizing the opportunitiespresented by technological innovation. By leveragingtechnology to empower product and serviceinnovation, it enhances service quality and iscommitted to delivering integrated digital supply chainsolutions to customers. These efforts consolidate theCompany's core competitive advantages and supportits long-term sustainable development.

Pioneering Intelligent Logistics

Innovation

Social

SafetyDelivery andTransportation

DirectOperations

Regulatory Agencies

EmployeesCommunityMedia/the Public

Safe delivery is the lifeblood of the logistics industry.

The growing customer demand for parcel integrityand controllability of the transport process has shiftedlogistics services from basic efficiency competitionto safety and trust as value anchors. Intelligentmonitoring and full traceability have become keyto reshaping market entry barriers and are drivingthe creation of high-value-added, safety-focusedcustomized services.

Accidents involving safe delivery may lead to damage

to brand reputation and risks of legal accountability.The need for technological upgrades, such asintelligent monitoring and full-process temperaturecontrol, will drive up the company's operating costs.Meanwhile, the iteration of industry safety standardswill add to the company's compliance pressure.

Safe delivery and transport capabilities have

emerged as the core of the company's differentiatedcompetition, with growing demand for high-endservices such as high-insurance protection andpharmaceutical cold chains. Intelligent traceabilitytechnology can generate data-driven value-addedservices. Leading the development of industry safetystandards strengthens the company's ecosysteminfluence and drives the shift of logistics valuetowards safety and trust assets.

Securing Safety DeliveryDriving Industry Synergy and

Shared Progress

1918SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Governance

Standardize Corporate Governance Strengthen Risk Control Management Abiding by Business Ethics Ensuring Information Security

1918

Fortifying Sustainable Governance forLong-Term Resilience

"Honesty is the way" is the core value that SF has always adhered to. Inthe face of the increasingly complex global regulatory environment, SFhas always adhered to the principle of good faith and built a rigorouscorporate governance structure, a comprehensive risk managementand control system, strict business ethics standards and a completeinformation security guarantee system to provide customers with safeand reliable logistics While providing services, we make every effort toensure the sustainable, stable and healthy development of the enterprise.In order to realize the corporate vision of "becoming a respected world-leading digital logistics solution service provider".

SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

2120SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Corporate GovernanceSF has formulated theArticles of Associationand other supporting internal control systems in strict compliance with therequirements of theCompany Law, the Securities Law, the Governance Code of Listed Companiesand the relevantlisting rules of the Shenzhen Stock Exchange and the Stock Exchange of Hong Kong Limited (including theCorporateGovernance Code) and other relevant laws and regulations, so as to improve the Company’s internal corporate governancestructure, improve the internal management system and standardize the Company’s behavior. The Company has definedthe responsibilities and powers of decision-making, execution and supervision, and established a corporate governancestructure consisting of the general meeting of shareholders, Board of Directors and Supervisory Committee, forming adivision of labor and restraint mechanism with clear powers and responsibilities and standardized operation. The Company’sgovernance structure complies with the relevant requirements of domestic and overseas regulatory authorities on thegovernance of listed companies.

Performance of Duties by Special Committees of SF’s Board of Directors in 2024

Strategy Committee

Review the overall development strategy and sustainable development strategy of theCompany, supervise and guide the implementation of ESG work, and make recommendationsto the Board.Remuneration andAppraisal Committee

Recommend the remuneration of Directors and senior management to the Board, to ensurethat the remuneration system serves the Company's business strategy and continuously adjustit to support the Company's long-term development.

Risk ManagementCommittee

Guide the Company's overall risk management work, evaluate the integrity of the riskmanagement system (including ESG risks) and issue opinions, and assist the Board inperforming its risk management functions.NominationCommittee

Review the diversity policy for board members, examine the structure and composition ofthe board, assess the independence of independent non-executive directors, and provideprofessional recommendations.Audit Committee

Auditing the Company's financial information and its disclosure, supervising and evaluatinginternal and external audit work and internal control system, standardizing the Company'soperating behavior, improving operation management and avoiding operational risks.Diversity of the Board of DirectorsIn order to enhance the efficiency of the Board and maintain high standards of corporate governance, the Company hasadopted a Board Diversity Policy which sets out the objectives and approaches to achieve and maintain diversity on theCompany’s Board. Pursuant to the Board Diversity Policy, the Company seeks to achieve Board diversity by consideringa number of factors, including but not limited to gender, age, cultural and educational background, ethnicity, professionalexperience, skills, knowledge, industry and regional experience and length of service. The implementation of this policy ismonitored by the Nomination Committee. The Nomination Committee shall report its findings and make recommendations,if any, to the Board. The Company reviewed such policies and objectives from time to time and at least annually to ensurethat they are suitable for determining the optimal composition of the Board.As of the end of 2024, the Company’s board of directors has a balanced allocation of experience and industry background.The directors of the Company have diverse educational backgrounds, including economics, law, accounting, businessadministration, as well as different industry backgrounds and professional qualifications. The Company has threeindependent non-executive directors with different industry backgrounds, accounting for more than one-third of the boardmembers. In addition, the Company’s board of directors has two female directors, representing 28.57 % of female directors.The age range of directors ranges from their 30s to their 70s. After assessing the business model of the Company andthe background and competence of the Directors, the composition of the Board of the Company is in line with the BoardDiversity Policy.Supervisory CommitteeThe number and composition of the Supervisory Committee of the Company comply with the requirements of laws andregulations. In 2024, the Company held a total of 6 meetings of the Supervisory Committee. Each supervisor attended theSupervisory Committee seriously, actively performed his duties, supervised and expressed his opinions on the Company’smajor events, related party transactions, financial status, etc.Compliance Information DisclosureSF has always honestly fulfilled its information disclosure obligations, strictly complied with the regulations and requirementsof China Securities Regulatory Commission, Hong Kong Securities and Futures Commission, Shenzhen Stock Exchangeand The Stock Exchange of Hong Kong Limited on information disclosure, as well as the relevant provisions of theCompany’s Management System for Information Disclosure, and further strengthened the collection, feedback, collationand review of material information to ensure the truthfulness, accuracy, completeness and timeliness of the informationdisclosed.

StrategyCommittee

Board ofDirectors

Office of the Board

of Directors

General meeting ofshareholders

SupervisoryCommitteeRemuneration andAppraisal Committee

Risk Management

Committee

NominationCommittee

Audit Committee

SF’s Governance StructureGeneral Meeting of ShareholdersThe Company convenes and holds general meetings of shareholders in strict compliance with relevant laws and regulations,engages lawyers to attend the general meeting as observers and issue legal opinions on the holding and voting proceduresof the general meeting, and gives full respect to and protects the legitimate rights and interests of all shareholders andinvestors. The Company’s controlling shareholders strictly regulate their behaviors, exercise their rights through the generalmeeting, and do not interfere with the Company’s management or decision-making directly or indirectly bypassing thegeneral meeting and the Board. In 2024, SF held 2 general meetings.

Board of DirectorsSF’s Board of Directors is composed of 7 directors, of which 4 are executive directors and 3 are independent non-executivedirectors. In 2024, the Company, giving full play to the decision-making functions, held a total of 8 board meetings to studyand make decisions on major matters such as share repurchase plans, dividend plans, and exercise of equity incentives,giving full play to the decision-making guidance role of the board of directors. In strict accordance with the requirementsof theCompany Law, the Articles of Association, the relevant listing rules of Shenzhen Stock Exchange and The StockExchange of Hong Kong Limited and other relevant laws and regulations, SF has meticulously conformed to the relevantprocedures of the board meeting, and made timely disclosure of information after the meetings.The Board of Directors has established five special committees, namely the Strategy Committee, the Remuneration andAppraisal Committee, the Risk Management Committee, the Nomination Committee, and the Audit Committee. In 2024,these special committees held a total of 13 meetings. Each committee member carefully reviewed various issues, activelyput forward relevant opinions and suggestions on corporate governance and business decisions, supervised and promotedthe implementation and implementation of the resolutions of the board of directors, diligently and actively performed theirduties, and safeguarded the legitimate rights and interests of the Company and all shareholders.

Standardize Corporate Governance

2322SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Risk Management SystemSF has established the Risk Management Committee of the Board of Directors, as a specialized risk managementorganization, which leads the Group’s risk control and compliance management direction and guides the Group’s risk controland compliance management work on behalf of the Board of Directors. The Risk Committee under the Risk ManagementCommittee of the Board of Directors is a professional decision-making body for overall management and control of riskcontrol and compliance of the Company. It is led by the Chief Financial Officer (CFO) of the Company and is mainlyresponsible for deliberating and making decisions on the construction, system, process, authorization, prevention andresponse of major risks of the Company. The Risk Committee reports to the Risk Management Committee of the Boardof Directors on a quarterly and annual basis. The Risk Control and Compliance Office of the Company coordinates themanagement of risk control and compliance; while the leader of each functional department, BG (Business Group), BU(Business Unit) and region has the primary responsibility for the relevant risk control, responsible for the formulation ofspecific risk control measures and implementation rules, as well as the identification and assessment of daily risks andthe implementation of control measures.

SF Risk Management Organization Structure

SF attaches great importance to risk management, establishes and continuously optimizes a comprehensive and efficientrisk management system to ensure the steady development of the Company. The Company carries out risk identificationwork every year. The functional leaders, BG, BU and regional leaders combined the internal and external environmentalconditions faced by the business, identify internal management risks (including strategic, operational, financial, market andlegal compliance risks) and external environmental risks (including changes in macroeconomic environment, impacts onnatural environment, adjustments to national laws and regulations, changes in industry regulatory policies, and evolutionof social customs and concepts).

The Risk Control and Compliance Department of the Company is responsible for coordinating risk control andcompliance-related management, organizing the first person in charge of risk management to evaluate the probabilityand impact of risks, and monitoring the risk trend through models, so as to determine the priority of risk management. Atthe same time, the identified existing and potential risks are summarized and reported to the Risk Committee. The RiskCommittee conducts a comprehensive risk assessment of the Company once a year, reviews the Company’s annual riskreport, and determines the Company’s risk appetite and risk response strategies.The internal audit department of the Company regularly reviews the risk management controls and procedures, and reportsthe audit results to the Audit Committee of the Group to ensure the comprehensiveness and accuracy of risk assessmentand the effectiveness of the risk management processes.In order to effectively cope with the complex and ever-changing market environment and compliance challenges, theCompany obtained the ISO 37301 Compliance Management System certification this year, and introduced an externalprofessional perspective to comprehensively review the risk control and compliance management system of the Company,further confirming that the Company has high risk management capabilities and standards.

Risk Management Practices

SF attaches great importance to risk management and builds a comprehensive and efficient risk management systemthrough a series of measures to ensure the steady development of the Company. The Company actively promotes theEnhancement of digital risk management capabilities, implements Loop-closing management of risk events to enhance theaccuracy of risk identification and response, enhances employees’ risk awareness and management capabilities throughrisk training, and incorporates ESG risk management into the risk management framework to cope with the challengesbrought by the complex external environment.

Enhancement of Digital Risk Management CapabilitySF has continued to strengthen its digital risk management capability by continuously upgrading the Company’s riskmanagement system, internal control and compliance system and compliance management system. Through continuousiterative optimization of the systems, SF has achieved the digitization of the entire chain from risk identification, assessment,monitoring, early warning, response, to loop closing, thereby effectively improving the efficiency of risk identification andmanagement.

Risk Management System

Responsible for monitoring risk management and control in priority areas of the Company andmanaging risk events.

Internal Control and Compliance PlatformResponsible for conducting regular internal control inspections of the Company’s businessprocesses and supervising rectification.Compliance Management System

Responsible for intelligently capturing and analyzing external regulatory requirements and publicopinion information, and monitoring the quality of internalization of external regulations.In order to further enhance the risk prevention and control capabilities of the Company’s overseas business, in 2024,overseas versions of the Company’s risk management system and compliance management system were added, realizingonline management of overseas risk events, supporting the group to quickly coordinate and respond to risk events, andprecipitating risk information to further enhance the ability to resist risks; At the same time, it gradually integrates the lawsand regulations of overseas countries and regions to provide integrated support for the collection, precipitation, analysis,sharing and active management of compliance information for overseas markets, ensuring compliance operations andescorting the steady expansion of overseas business. In addition, a multi-dimensional risk board has been added to therisk management system to help business organizations comprehensively and clearly grasp the overall picture of risksand improve the accuracy and efficiency of risk management.

Strengthen Risk Control ManagementSF has established a sound internal control and risk management system to strengthen and standardize the internalmanagement of the Company, continuously improve the effects of risk prevention and control, and promote the sustainableand healthy development of the Company. The Company also actively identifies and assesses environmental, social andgovernance (ESG) risks in operation and development, and clarifies the response strategies for such risks to effectivelyreduce operational risks. In 2024, SF passed the ISO 37301 Compliance Management System certification, and theCompany’s management level in compliance management and risk control was recognized by external professionalevaluation.

2524SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Loop-Closing Management of Risk Events

SF has established a sound risk event management system, which realizes graded risk event management through risklabels, and strengthens the whole-process risk management of pre-event prevention, in-event response and post-eventreview, so as to enhance the efficiency of risk event management and control.

Pre-EventPrevention

Regularly carry out riskassessment to understandthe current situation of riskmanagement and control,continuously optimize therisk management and controlmechanism, and reduce theprobability of occurrence ofrisk events from the source.

Post-EventReviewSummarize the incidentwith the relevantdepartments, dig outroot causes, promote thedepartments to formulateoptimized solutions, andcontinue to consolidatethe basic capabilities ofrisk event management.

In-EventResponse

Respond with multipledepartments to addressrisk events accordingto local conditions andminimize the negativeimpacts caused thereby.

In 2024, the Company continued to improve the risk management system, thoroughly identify potential risks in businessoperations, cooperate with core business units to carry out a number of special tasks on core risks, and formulate targetedcompliance plans to effectively respond to and resolve related risks and improve risk management maturity. At the businessregional level, the Company comprehensively used expert assessment, internal risk event analysis, external penalty dataand risk model results to accurately carry out special response measures, successfully resolve various risks, and providea solid guarantee for the stable business operation.Risk Management Training

SF continues to carry out diversified risk training and empowerment courses, and strengthens employees’ risk awarenessthrough offline training, online learning and examination clearance. In 2024, the Company conducted risk compliancetraining as planned, covering business risks, product and service quality, anti-corruption and other risk areas, andrisk-specific training covered all new employees.

Based on risk event management, the Company carried out a targeted refresh of the risk scenario and deposited

risk response management and control plans in 2024.Based on the summarized response experience of historical risk events, the Company considered medium- andhigh-risk points into business scenarios to prepare corresponding risk plans, achieving

% coverage ofmedium and high-risk points.

In 2024, the Company conducted a total of

risk compliance trainings, with a training time of over

88,080

hours, and the coverage rate of special risk training for new employees reached

%.

Code of Business Ethics

In the face of an increasingly complex global regulatory environment, SF has always adhered to high standards of ethicsand integrity, and upheld the philosophy of sustainable and healthy business. In 2024, the Company formulated and issuedthe Code of Business Conduct, Anti-Corruption Statement and Conflict of Interest Statement, which are applicable to allemployees of SF and its companies and branches around the world, urging all employees to strictly demand themselves,respect laws and regulations, respect the system, and work with partners to operate in compliance with integrity.

Code of Business ConductMain contents

Code of Business Conduct

Our employees:

? Respect and safeguard human rights? Work safety and health? Diversity and cultural inclusionOur commercial activities:

? Choose a business partner? Respect and protect personal information and commercialconfidential information? Integrity and anti-corruption? Gifts and hospitality? Anti-monopoly and fair competition? Anti-Money laundering and counter-terrorism? Compliance with export controls and economic sanctionsOur Company:

? Use and protect company assets? Use and protect information system security? Protection of intellectual property rights? Proper use of social media? Avoid conflicts of interest? Accurate records and truthful disclosures? Prohibit insider trading? Environmental protection and sustainable development

Anti-Corruption Statement? Anti-corruption guidelines ? Complaints and reportingConflict of Interest Statement? Recusal from office ? Work avoidance

Abiding by Business EthicsSF always adheres to compliant operations, abides by business ethics, and adopts a zero-tolerance attitude towards anyviolation of business ethics. To ensure the effective implementation of business ethics and compliance management,the Board-level committee is responsible for supervising and reviewing important matters related to business ethics andcompliance management, and ensuring the effectiveness of the Company’s internal control system. The Chief FinancialOfficer assists the Board in promoting compliance management such as anti-corruption, anti-money laundering andanti-unfair competition; The Chief Audit Officer is responsible for organizing internal audit, monitoring and reviewinginternal corruption and other irregularities, and reporting to the Audit Committee of the Board on a regular basis. Relyingon this management system, SF actively maintains a free and fair market environment, solidly promotes the constructionof an integrity system, and lays a solid foundation for building an integrity management ecology and achieving sustainabledevelopment.

ESG Risk Management

SF regularly carries out the identification and sorting of risk information database, and fully integrates environmental,social and governance risks into the original level 1, 2 and 3 risk level databases. The ESG risk management structureis consistent with SF’s risk management organizational structure, with the Risk Management Committee of the Board ofDirectors as the highest risk management body responsible for the identification, prevention and control of ESG risks.SF incorporates ESG risks such as intellectual property risks, anti-corruption risks, occupational health and safety risks,human rights and human resources management risks, and environmental risks into the risk management framework, andregularly evaluates and monitors related ESG risks. Among them, environmental risks include climate change transitionrisks, carbon target management risks, energy use monitoring risks, etc. (For the governance, response measures andtargets of climate change risks, please refer to the section headed “Addressing Climate Change”)

2726SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Anti-Monopoly and Anti-Unfair CompetitionSF always adheres to the principle of fair and free competition, strictly abides by anti-monopoly and anti-unfair competitionlaws and regulations, formulates anti-monopoly-related management systems, systematically regulates market competitionbehaviors, and is committed to maintaining an honest, fair and free market order and business environment. In 2024, SFdid not have major legal proceedings related to unfair competition and antitrust.The Company takes active measures in the field of anti-monopoly and anti-unfair competition to ensure the complianceof business activities. In 2024, the Company formulated and issued guidelines related to the review of exclusive clausesto guide employees to identify possible risk clauses in contracts, optimize the contract approval process, strengthen thecompliance review process, ensure that contracts comply with relevant provisions of anti-monopoly and competition laws,effectively prevent potential legal risks, and comprehensively build a strong anti-monopoly compliance defense line.The Company attaches great importance to the construction of anti-monopoly culture, and continuously improvesemployees’ compliance awareness and ability by carrying out multi-level and targeted anti-monopoly training. In addition,the Company specially invited law firms to conduct in-depth interpretation of the latest law enforcement and legislativetrends of the anti-monopoly law and the anti-unfair competition law, further consolidate employees’ legal awareness,create a cultural atmosphere of fair competition, and provide a solid guarantee for the Company’s compliance operations.Anti-Commercial Bribery and Anti-Corruption

SF integrates bribery and anti-corruption policy into its daily operations, has zero tolerance for any form of corruption,bribery and fraud, and continues to strengthen the Company’s ability to control business ethics such as anti-corruption,anti-bribery and anti-money laundering through anti-corruption risk assessment, anti-corruption audit and anti-corruptioneducation. SF has established an internal audit department independent of business lines to monitor the implementation ofanti-corruption systems and systems through internal audits. In addition, the Company has established an anti-corruptioncompliance management committee and a review committee to support the effective implementation of the anti-corruptioncompliance control mechanism. During the reporting period, SF did not commit corruption, bribery, fraud and other violationsof laws and regulations that may have a significant impact on the Company’s operations.Integrity Management System

The Company has established a defensive line for integrity supervision from the Audit Committee of the Board of Directors,the regulatory department at the headquarters to the business areas/branches. Three defensive lines have also beenestablished simultaneously within business areas/branches to achieve an integrity management system that runs throughthe whole network and all positions of management. In addition, the Company has also set up a Senior Executive DisciplineInspection Committee and an Employee Discipline Inspection Committee led by the Chief Executive Officer (CEO), theChief Human Resource Officer (CHO), and the Chief Audit Executive (CAE). These committees are respectively responsiblefor managing the integrity and discipline of senior management and other employees.

Senior Management Disciplinary

Inspection Committee

Employee Discipline Inspection Committee

Led by the CEO, CHO and CAE

SF’s Defensive Lines for Integrity Supervision

Three DefensiveLines for IntegritySupervisionBusiness

Areas/Branches

Business owners/outlets

Risk Control Group of Operationand Management Department

Employee Relationship Group of

Human Resources Department

To create a fair, just and open working atmosphere, SF has also established an anti-corruption system of “no courage,no ability and no intention” to strictly prevent and sternly punish illegal and corrupt behaviors such as bribery, acceptanceof bribery, embezzlement, and fraud.

SF “No Courage, No Ability and No Intention” System for Anti-corruption

Lay a solid foundation of“no intention to be corrupt”

ideology

Commitment signing

Propaganda and education

Special learning

Organization atmosphere

Create a “no ability tobe corrupt” governance

environment of

Organization governance

Systems and standards

Democratic supervisionCreate a workingatmosphere of “no courageto be corrupt”

Active anti-fraudProfessional investigation and

punishmentStrict accountability system

Anti-Bribery and Anti-Corruption Risk Management

SF has established a systematic anti-corruption risk assessment mechanism to comprehensively identify and assesspotential risks in various business areas, formulate targeted response measures, and continuously strengthen anti-corruptionrisk management. The Company conducts annual reviews on the effectiveness and compliance of internal control toprevent and timely detect bribery and corruption risks, and reports the review results and countermeasures directly to theAudit Committee of the Board. In 2024, the Company further deepened digital anti-fraud research and proactively identifymore than 600 abnormal clues in multiple fields, and initiated the “Clean Breeze Campaign” to rectify potential risk points,significantly improving risk prevention and control capabilities and providing a solid guarantee for clean operations.Anti-Bribery and Anti-Corruption AuditSF has included anti-corruption in its key audit areas to identify and assess potential risks, so as to ensure the effectivenessof its internal anti-corruption management system, and safeguard the Company’s compliance operation. In the past threeyears, the percentage of all operational sites for which an internal audit/risk assessment concerning business ethics issueshas been conducted was 100%. In addition, SF conducts third-party external audits every year to independently review theCompany’s business ethics and sort out and identify potential business ethics-related risks in the Company’s operations.

Excerpts from the Anti-Corruption Commitment Letter:

●

I will refuse to engage in any bribery, acceptance of bribes,embezzlement and other improper business practices during thetenure of office.●

I will refuse to engage in any behavior that conflicts with the

interests of the Company during the tenure of office, unless priorwritten and explicit intention is obtained from the Company.●During employment, if any unit or individual related to the business

of the Company offers or request any gift to me during the tenureof office, I will refuse and promptly report to the Company.the awareness of integrity and creates a clean and honest culture atmosphere. In 2024, the signing rate of SF practitioners’Anti-Corruption Commitment Letter reached 99.5%.The Company continues to strengthen the construction of integrity culture, and conducts regular integrity index surveys togain a comprehensive understanding of the effectiveness of internal integrity construction. At the same time, the Companyconducts training on ethical standards to all employees (including part-time employees and contractors) through systeminterpretation, integrity briefings and anti-corruption announcements, so as to effectively enhance employees’ anti-corruptionawareness. In 2024, SF adopted a combination of “online cases + offline training” to carry out positive promotion of integrityculture and negative warning of fraud cases, and organized all employees to learn, know and abide by the rules.

Anti-Bribery and Anti-CorruptionEducationSF has formulated theEmployee Handbookand

Integrity Handbookto clarify the Company’sdefinition of internal and external integritybehaviors, the definition of violation behaviorsand the corresponding penalties, thus providingall employees with a clear and reliablecode of conduct, to regulate the behaviorsof the employees, and to advocate honestpractices. At the same time, the Companyactively promotes all employees to sign theAnti-Corruption Commitment Letter, strengthens

The third line: Company auditThe second line: Regulatorydepartment at the headquartersfor each segmentLegal affairs/Compliance/Internalcontrol/Risk control, etc.The first line: Business areas/branches

2928SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

In terms of supplier anti-corruption management, the Company formulated and publishedthe Code of Conduct forSuppliersthis year, advocating all suppliers to establish a sound compliance management structure, formulating andimplementing anti-corruption policies, ensuring that they fully comply with SF’s code of conduct and standards, and furtherconsolidating the honest and honest cooperative relationship between the two parties. At the same time, throughtheSunshine Procurement Notification Letter, the Company clarifies the responsibilities and rights of both parties to jointlybuild integrity, sets a high-standard business ethics example, and requires cooperative suppliers to sign theIntegrityAgreementto jointly build an integrity value chain. In addition, the Company pays attention to supplier integrity education,and this year conducted integrity training on “Sunshine Cooperation, Healthy and Win-win” for cooperative suppliers,covering 272 cooperative suppliers.

SF Anti-Corruption Propaganda and Education

Exposure bulletin

Early warningfor disclosure ofviolation of rules ordisciplines

Propaganda and

promptsPositive guidanceCommendation ofexamples

SysteminterpretationRed line under rulesReporting channelsReward mechanismSituational guidance

Cautionary formJudicial fraud casedisclosure warningClean governmentbase warningeducation

Integrity briefingMonthly disclosure

Hot issues and

concerns

Anti-corruptionannouncementIllegal fraudAnnualannouncement

“Integrity Special Training”: A special integrity training with the theme of “Integrity, Responsibility and Concentration ofManagement” was conducted for key positions and specific functions, covering 274 employees.

“Anti-corruption Case Publicity”: Carry out publicity on typical anti-corruption cases for all employees, promote regional

managers to go deep into the front line, present themselves, and convey typical cases to the grassroots at different levels.

2024 Integrity Training Program

In 2024, the signing rate of suppliers’ theIntegrity Agreementreached

%.

Whistleblowing Management

SF attaches great importance to whistleblower management and whistleblower protection, and actively creates a safe andcredible whistleblower environment. The Company continues to improve theReporting Management Measures, which clearlystipulates the confidentiality requirements of whistleblower information, and any employee who comes into contact withwhistleblowing information must strictly fulfill the confidentiality obligation. The Company strictly prohibits retaliation againstwhistleblowers and clue providers. Violators would be severely dealt with, and those suspected of committing crimes would beheld accountable according to law. At the same time, as the first person responsible for the protection of witnesses (includingwhistleblowers), the heads of organizations must take reasonable measures to ensure that their rights and interests are notinfringed, resolutely put an end to any form of retaliation, and effectively protect the rights and interests of whistleblowers.At the same time, SF introduced the reporting reward mechanism and expanded the reward scope. The Company encouragesmany people familiar with the matter to actively provide valuable information to the Company, enhance the enthusiasm ofemployees and external stakeholders to participate in reporting, and provide strong support for maintaining the Company’sgood operating environment and business ethics.

In 2024, there were

privacy breaches of anonymous whistleblowers in SF.

Reporting Channels

SF provides a 7/24 reporting channels for internal and external stakeholders, and encourages employees, suppliers andother stakeholders to report violations of business ethics publicly or anonymously through email, official website, letter,hotline and other channels. At the same time, the Company has established a mutual communication mechanism tounderstand the plight of employees on business ethics through employee symposiums, internal media and other.

Reporting channelsTarget group

Reporting e-mailsf5198@sf-express.com

External stakeholders and all internalpractitioners

SF official website

Home-About Us-I want to report(address: https://www.sf-express.com)

MailingSF Headquarters – Audit Committee (receipt)Forespace APPService - I want to report

All internal employees

Labor union hotline4006 883 783

For the reported information received, the Company strictly implements the “Triple Ones” (“三個一”) timeliness requirementsto ensure quick response and timely handling. After investigation and verification of any violation, the Company wouldpunish the responsible person accordingly according to the severity of the violation; If it is suspected of breaking the law,the person responsible would be handed over to the judicial organ for handling.

SF’s the Reporting Management Measures sets out the confidentiality requirements for whistleblowerinformation, including but not limited to the following:

●

All personnel who receive information reported shall submit the information to the department in charge of

whistleblowing and shall not, at their discretion, disclose the information to other personnel.● Personnel involved in the follow-up of the report shall not disclose the relevant information to other personnel.

●

Investigation results and handling opinions shall not be disclosed prior to the assessment and public announcement

of the disciplinary opinions.

● Investigation reports and evidence shall not be disclosed to other personnel at their discretion.

“Triple Ones” Requirements:

●

Response within one working day: Respond to the whistleblower within one working day upon receipt of the report.

●

Case confirmation within one week: Confirm whether a case needs to be filed for investigation within one week uponreceipt of the report.●

Completion of the investigation within one month: Complete the investigation of the report and provide the results

within one month of confirming the case.

In 2024, SF achieved a

% follow-up rate for effective reports and a

% compliance rate for the“Triple ones” requirements regarding time-efficient complaint handling.

3130SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Protection of Intellectual Property RightsSF attaches great importance to intellectual property protection, strictly abides bythe Patent Law of the People’s Republicof China, Trademark Law of the People’s Republic of China, Trademark Law of the People’s Republic of Chinaand otherlaws and regulations, builds a rigorous and standardized intellectual property management system, implements scientificand effective hierarchical classification and differentiated management, ensures the compliance and orderly use process,effectively protects the Company’s intellectual property rights and interests in an all-round and multi-level manner, andbuilds a solid backing for the Company’s continuous innovation and development. In 2024, SF Technology was recognizedas the “2024 Shenzhen High-Value Patent Cultivation and Layout Center” for its outstanding performance in the field ofintellectual property protection, demonstrating its demonstration and leading role as a key technology enterprise in theindustry in intellectual property protection.In order to stimulate innovation vitality, the Company implements an intellectual property incentive mechanism to encourageemployees to actively carry out innovation activities andguide employees to transform innovation achievements intointellectual property rights in a timely manner. The Companyheld a “World Intellectual Property Day” theme event tocommend the patents accepted and authorized in the previousyear. Among them, a total of 9 outstanding patents and 16outstanding inventors won the Intellectual Property SpecialContribution Award.In addition, the Company integrates intellectual propertycompliance culture into daily information and businessprocesses through knowledge quizzes, special trainings andposter promotions, continuously strengthens employees’awareness of intellectual property protection and compliancerisk, and promotes innovation and development.

Decisionmaker

Information Security and Privacy CommitteeComposed of the CEO, the CFO and the CTO of the Company

Be responsible for information security and privacyprotection decisions, appointments and instructions,as well as supervision and audit of personalinformation protection related matters

Management

Information Security and Privacy Protection Working GroupLed by the Chief Information Security Officer, it is composed of theInformation Security Center, the Legal Affairs Center, and variousbusiness lines.

Coordinate and organize the Company’s informationsecurity and privacy protection governance

Implementation

Departments and Business UnitsComposed of functional departments and business units

Implement specific information security and privacyprotection governance measures

In accordance with the latest relevant laws, regulations and data protection standards at home and abroad, the Companycontinuously iterates internal systems and related measures to provide a solid guarantee for information business. In 2024,SF comprehensively revised thePrivacy Data Security Compliance Management Standardsandthe Information SecurityHigh-Risk Behavior Management Measuresbased on the actual business situation; At the same time, based on dataclassification and classification, theData Lifecycle Security Management Regulationswere added to clarify the securitymanagement requirements of different levels of data; In addition, in order to meet the requirements of laws and regulationsand internal supervision and inspection,the Management Standard for Compliance Inspection of Personal InformationProtection was added to guide the compliance inspection of personal information protection.The Company’s information and network security management system has passed ISO 27001 information securitymanagement system certification and ISO 27701 privacy information management system certification, covering theCompany’s main business operation scenarios. In addition, SF Express App has passed the network security level protectionlevel three protection evaluation and CCRC mobile Internet application (App) Android/IOS security certification, providingall-round guarantee for user data security.

Level 3 network guaranteeletter (core operation and

online business)ISO 27001 CerticationCCRC (Andriod) CerticateCCRC (IOS) CerticateISO 27701 CerticationMaintaining Network and Data SecuritySF continues to invest in building network and data security capabilities to provide users with safe, stable and reliableproducts and services, ensure the continuity of business systems, and meet regulatory compliance requirements. Byregularly conducting network security vulnerability detection and actual combat exercises, the Company continuouslyimproves its security defense capabilities to ensure that it can respond quickly and effectively to potential threats. In orderto regulate employee behavior, SF clarifies the high-risk behaviors of internal information and network security, formulatesthe principles of punishment for violations, and effectively protects user data from unauthorized access or malicious attacks.In terms of user privacy protection, SF strictly follows the latest laws and regulations at home and abroad, and regulatesthe collection, use, sharing and retention of user privacy data. The Company adheres to the principle of “minimization”of data collection, collects and processes user data only within the necessary scope, and obtains user consent in a legaland transparent way to effectively protect the security and privacy of user data.In order to further improve data security management, SF regularly conducts data security audits, comprehensivelyassesses internal and external data security risks according to the latest regulatory requirements, and continuouslyimproves the information and network security management system according to the evaluation results. In 2024, theCompany did not have major data security incidents.In 2024, SF conducted multiple third-party data security due diligence investigations. The investigation areas includequalifications and certification, information security policies, human resource security, physical security, network security,log auditing, host security, application security, terminal security, compliance, data and privacy protection and other fields.There was no material non-compliance in the third-party data security due diligence this year, which fully demonstratedSF’s excellent practices in data security and privacy protection.

SF conducts regular training on IP protectionEnsuring Information Security

Information and Network Security Management System

SF strictly abides by national laws, regulations and industry norms, always maintains high alertness to informationsecurity and network security risks, and continues to improve the construction of internal information and network securitymanagement system.The Company has established a three-level information security and privacy protection management structure consisting ofdecision-making level, management level and executive level. The Information Security and Privacy Protection Committeeis the highest decision-making organization, responsible for information security and privacy protection decisions,appointments and instructions. The Group’s Information Security and Privacy Protection Working Group is set up underthe Committee, which is led by the Chief Information Security Officer, to support the Company’s information security andprivacy protection governance and ensure the efficient operation of the management system.

3332SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Assessment of Graded Protection:

The security compliance of information systems is monitored and assessed based on national and industry standardsand specifications. This assessment enables the Company to gain a timely understanding of the security protectionstatus of information systems and to assess their security protection capabilities. In addition, targeted correctiveactions can be proposed for any identified security issues and potential risks.Internal Audit of the Management System:

Conduct internal audits of the data security management system in accordance with system standards such asISO 27001 and ISO 27701. The management system is audited from three aspects: compliance, applicability, andsufficiency, and any problems found are rectified in a timely manner. In 2024, SF carried out one information securityinternal audit, effectively ensuring the reliability of the company’s information and network security system.Security Response Center (SRC):

The SF SRC is designed to enable potential internal risks to be identified externally and remediated in a timelymanner, and to reward users who discover security vulnerabilities in the systems and operations.

SF Data Security Risk ManagementPersonal Information Protection

SF attaches great importance to the protection of customers’ personal information security. Based on laws, regulations andindustry best practices, SF has built a comprehensive privacy protection management system, formulated and continuouslyimproved a personal information security and compliance system covering the entire life cycle of data, and ensured personalprivacy protection work carried out in an orderly manner. In order to implement the protection of personal information, theCompany has taken diversified measures covering the entire digital life cycle to effectively protect customers’ privacy andsecurity with a responsible attitude. In 2024, there were no major personal information security incidents in SF.

Measures to Protect Personal Information

Mechanism for Responding to Personal Information RightsSF has established a personal information rights request response mechanism. Before collecting and processing users’ personaldata in its business, it timely informs users of their personal information rights and other relevant information through meanssuch as providing privacy agreement check boxes and device pop - up windows. It also responds to users’ rights - exerciserequests within the time limits required by law.

Strengthening the Technical Foundation of Privacy Protection

SF keeps improving its data security technology capabilities, including unified privilege management platforms, automatedencryption/decryption platforms, log management and analysis tools, and personal data desensitization. The aim of these effortsis to protect users’ personal information from unauthorized access, manipulation, disclosure, corruption or loss.

Privacy Waybill ProtectionSF desensitizes the fields on the express waybill that contain users’ personal information, namely the names, contact andaddress details of the sender and recipient. In addition, delivery personnel and customer service representatives communicatewith customers using virtual phone numbers. This effective management of the risks associated with data sharing enhancesusers’ privacy experience.

Personal Data Lifecycle Security ManagementUnder the data lifecycle theory, the personal information involved in the business activities is subject to classification andgrading management. SF takes protective measures such as encryption, de-identification, and access control during the datacollection, transmission, use, and storage processes, depending on the sensitivity of the data and the principle of minimumnecessary rule. These measures aim to effectively protect personal information security.Security Incident Detection and Response

SF uses a security incident investigation and response platform to monitor both internal and external threat signals targetingsensitive data in real time. This platform allows for immediate identification of abnormal operations and high-risk behaviorsthat may pose the risk of personal information leakage. Once an abnormality is identified, the Company immediately launchesan investigation and takes measures to minimize the risk of personal information leakage at the source.

Construction of Information Security CultureProtecting information security is the common responsibility of all SF employees. In order to strengthen information andnetwork security management capabilities, the Company has taken multiple measures to comprehensively enhance allemployees’ awareness of information security through network offensive and defensive drills and information securitytraining, and enhance information security and personal information protection capabilities.Network Attack and Defense DrillIn order to continuously improve the Company’s network security protection capabilities and emergency responsecapabilities, SF organizes red-blue confrontation drills every year. By simulating various classic scenarios of externalnetwork security attacks, SF constantly discovers its own network security defense weaknesses during the red-blue drillsand reviews and improves them, comprehensively improves the security team’s collaborative combat capabilities andemergency response capabilities, and consolidates the Company’s data security capabilities.In 2024, the Company carried out multiple actual combat red and blue drills in stages. Through the collaboration of internaland external security teams, it simulated real attack behaviors such as phishing attacks and vulnerability attacks, coveringvarious typical scenarios of network security and data security confrontation, and comprehensively verified the effectivenessof the Company’s security operation system.Information Security TrainingIn order to enhance employees’ awareness and ability of information security, SF conducts information security thematictraining for all employees every year. In 2024, the Company carried out 19 network security technology sharing activitiesand 23 security awareness promotion activities, covering all employees, with a cumulative training time of more than 1,300hours, which significantly improved employees’ information security protection awareness and execution and disposalcapabilities.

In 2024, SF carried out

network security technology sharing activities and

security awarenesspromotion activities, covering all employees, with a cumulative training time of more than1,300 hours.

In 2024, SF conducted special training for key industry and research personnel,security personnel, and legal compliance personnel with the theme of basiccross-border legal knowledge and strategies, data security strategies, etc., aimingto enhance employees’ awareness of data protection and strengthen data securitymanagement. Through in-depth study of training courses, employees have a clearerunderstanding of cross-border data legal knowledge requirements and internal datasecurity policies, which helps to strictly implement security policies in daily work,effectively reduce data security risks, and protect the Company’s data security.

Special training empowerment, focusing on data security

SF regularly conducts information securitythemed training sessions annually

3534SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Creating Green Logistics Promoting Circular Economy Practice Green Operation Safeguarding Ecological Environments Addressing Climate Change

Environment

The logistics system plays a leading, fundamental and strategic role inbuilding a modern economic system. Building a green, low-carbon andefficient logistics and transportation system has become an inevitablechoice for the industry to achieve long-term development. As anenterprise with a sense of social responsibility, SF actively responds tothe national strategy of "Carbon Peaking and Carbon Neutrality", relieson technological innovation, deeply promotes energy conservationand carbon reduction practices in logistics, warehousing management,packaging materials to create an industry-leading green logistics supplychain model. By extending green value to the industrial chain, SF buildsa low-carbon and efcient bridge between the production end and theconsumer end, and joins hands with the upstream and downstream valuechains to move towards a sustainable future.

Pioneering Low-Carbon Logistics to Powera Green Transformation

SF Holding 2024 Sustainability Report

About SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

3736SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Creating Green LogisticsWith the goal of protecting the environment, saving energy and reducing emissions, SF constantly improves itsenvironmental management system, and achieves green management covering the entire life cycle of logistics by steadilypromoting low-carbon transportation, building a green industrial park, developing sustainable packaging and activelyexploring the application of green technology, and actively creating green and sustainable logistics.

In 2024, SF reduced greenhouse gas emissions by 2,972,306 tCO

e.

GreenTransportation

GreenIndustrial Park

TechnologyInnovation

GreenPackaging

SF Forest

Green Ground Transportation

Optimize the transportation capacity structureand increase the proportion of new energyvehicles.Increase vehicle loading capacity and replacevehicles with high axle count.Phase out high fuel-consumption vehiclesand reduce energy consumption andpollution.Pilot operation of new energy vehiclessuch as methanol, liquefied natural gas(LNG), compressed natural gas (CNG) andhydrogen fuel.

Green AviationApplying Sustainable AviationFuel (SAF).Increase the proportion of largecargo aircraft with low energy.consumption and high energye?ciency.Application of aviation fuel-saving technology (internationalroutes redispatch, straight routeselection).Increase the proportion of newenergy vehicles in aviationbases.Accelerate the progress of photovoltaic construction in industrial parks and increasethe proportion of clean energy use.Promote the transformation of energy-saving equipment such as park lightingoptimization and intelligent electric box deployment.Implement intelligent energy monitoring and management to promote the process ofrened energy management.Fully implement packaging plastic reduction, recycling, harmlessness andstandardization.Digital and intelligent carbon management: based on standardized carbonmanagement capabilities, developed the industry's first shipment-level carboncalculation model.Intelligent path planning: optimize transportation routes and reduce transportationenergy consumption.Smart packing algorithm: Improve loading rate and reduce packaging materialconsumption.Promote digital tool processes such as electronic receipt, photo return, and paperlessreimbursement.Planting more than 1,647 acres of carbon-neutral forests in Hebei and Sichuan.

Carbon Reduction InitiativesCarbon Reduction Direction

GHG emission intensity (tCO

e/million revenue)

2023

2024

?

9.5

%

10304050607020

41.2

45.4

10,00030,00040,00050,00060,00070,00020,000

70,00018,339

Photovoltaic power generation (MWh)

2023

2024

?282%

10,00030,00040,00050,00060,00070,00020,000

70,00018,33980,000240,000210,000400,000480,000560,000160,000

479,327374,469

GHG emissions reduced through green transportation (tCO

e)2023

2024

?

%

80,000240,000210,000400,000480,000560,000160,000

479,327374,469100,000300,000400,000500,000600,000700,000200,000

664,184541,090

GHG emissions reduced through green packaging (tCO

e)2023

2024

?

%

100,000300,000400,000500,000600,000700,000200,000

664,184541,090260,000780,0001,300,0001,040,0001,560,0001,820,000520,000

1,785,1211,018,436

GHG emissions reduced through technology innovation (tCO

e)2023

2024

?

%

260,000780,0001,300,0001,040,0001,560,0001,820,000520,000

1,785,1211,018,436

1504506007509001,050300

709.9

807.0

Carbon footprint per parcel (gCO

e/parcel)

20232024

?

12.0

%

1504506007509001,050300

709.9

807.0

8002,4003,2004,0004,8005,6001,600

4,829

1,692

Emission reductions contributed by other initiatives (tCO

e) (including “SF Forest”)

2023

2024

?

%

Equivalent to an emission reduction of 38,846 tCO

e

3938SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Promoting Low-Carbon TransportationWith a core focus on green and sustainable development, SF deeply integrates low-carbon concepts into daily operations andmanagement practices, continues to consolidate the foundation of green technology, actively explores and promotes a varietyof low-carbon transportation modes, vigorously promotes the application of green logistics scenarios, and builds a sustainablelogistics system. This provides a solid support for building a sustainable logistics system, achieving harmonious developmentbetween corporate value growth and environmental protection, and setting a benchmark for the industry's green transformation.

Fenghe Platform obtained ISO

14083 Certification

Refining Carbon Footprint ManagementSince SF officially released the carbon target white paper in 2021, it has been committedto building an integrated green and low-carbon supply chain service capability,and reducing the impact of greenhouse gases on the environment through carbonemission management in all aspects of the industrial chain. Relying on the industry-leading technological innovation capabilities, the Company has built a standardizedcarbon management system, independently developed the industry's first full-linklogistics carbon footprint management platform-"Fenghe Sustainable DevelopmentPlatform" (hereinafter referred to as "Fenghe Platform"), and integrated the Company'scarbon emission and carbon emission reduction data, covering multiple links such aspackaging, transportation, transit, delivery.In 2024, SF empowers refined carbon management capabilities to the upstream anddownstream of the industrial chain, and launch Fenghe SaaS services to help customersquantify and track greenhouse gases in multiple scenarios such as supply chain logisticsand transportation, site energy consumption, and packaging material use., disclosureand certification. At the same time, many core functions of the platform, such as visualdashboard, refined carbon data reports, transportation carbon calculators, carbondiagnosis and carbon planning capabilities, have been comprehensively upgraded.With its standardized carbon management system and refined carbon calculationcapabilities, Fenghe Platform has passed GLEC V3.0 and ISO 14083 internationalstandard verification, becoming the first enterprise in the express delivery industry toobtain this certification.Based on a standardized carbon management system and refined carbon calculationcapabilities, coupled with leading logistics industry experience, SF has reached deepinto various industries such as new energy, high technology, clothing, shoes and hats,consumer goods, and luxury goods. As of the end of 2024, it has provided customizedgreen and low-carbon supply chain solutions and services to more than 60 world-renowned customers, deeply empowered upstream and downstream partners in theindustry chain, worked with customers to accelerate low-carbon transformation, andjointly promoted the industry towards a zero-carbon future.

In March 2024, SF signed a letter of intent for "supply chain-level full-link sustainable strategic services" with a leading globalluxury brand to jointly launch the "supply chain-level sustainable dual innovation" action. The purpose of this cooperation is toactively synchronize the accurate carbon information in the supply chain service scenario between brand owners and logisticsproviders, optimize the transportation mode of upstream and downstream logistics providers of brand owners, support theirsupply chain greenhouse gas emission reduction and offset actions, and reduce the company's environmental protectioncompliance costs and climate risks in operations, and enhance the green and low-carbon operational resilience of the entirelogistics supply chain.The collaboration will lead to two sustainable innovation projects:

This cooperation will accelerate the green and low-carbon transformation of the fashion industry supply chain, and providevaluable industry practical experience and contributions to the achievement of China's supply chain goals of “Carbon Peakingand Carbon Neutrality”.

Helped a leading global luxury goods brand launch the"supply chain-level sustainable dual innovation" action in China

Relying on the Fenghe Platform,SF has achieved refinedmanagement of logistics carbonfootprint in all scenarios such aswaybills, venues, and packaging,covering

scenarios,

indicators, and

accountingmodels in the supply chain.

quantify the climate impact of each link andtrack the climate contribution of green scenarios,including full-link transportation carbon footprintcalculation, full-link storage carbon footprintcalculation and full-link sustainable performancemanagement.

Climateinnovation

quantify the climate impact of material waste,track the contribution of circular economyunder the closed-loop material recycling model,including carbon footprint measurement on thematerial recycling side, and targeted recyclingperformance management.Circularinnovation

Collaborated with Luxury Brand Clients to Create aBenchmark Project For “100% Green Urban Distribution”

Green Ground TransportationRoad transportation is one of the important carbon-emitting links in logistics operations. In order to promote the all-rounddevelopment of green land transportation, the Company continues to increase the launch of new energy vehicles, optimizethe selection criteria of fuel vehicles, and empower vehicle energy consumption management and transportation routeoptimization through scientific and technological means, significantly reducing the air pollution and greenhouse gasemissions during ground transportation.Optimization of Transport Capacity Structure

SF has steadily expanded the scale of its green fleet by adopting various methods suchas self-purchase and leasing, gradually replaced traditional fuel transportation vehicles,and orderly promoted the green transformation and upgrading of its transportationcapacity structure. In 2024, the company added nearly 9,000 new energy vehicles intooperation, mainly used in diversified transportation scenarios such as short-distancebranch lines, connections and terminal collection and dispatch within cities, as well asprimary and secondary trunk lines across provinces and cities. As of the end of thereporting period, more than 40,000 new energy vehicles have been placed in service,with a service coverage of 253 cities.

Over40,000newenergy vehicles in use,covering

cities.

Number of SF’s Self-owned and Leased New-energy Powered Vehicles from 2018 to 202450,00040,00030,00020,00010,000

20187,049

11,354

17,053

21,278

26,189

31,750

40,439

201920202021202220232024

To address the luxury brand client’s needs and painpoints such as online integration of orders across multiplescenarios, traceability of logistics data across multiplelinks, and comparison and aggregation of carbon emissiondata under different transportation capacities, SF hasprovided digital and green solutions. It has explored agreen commercial service model for urban distribution,helping the brand client to achieve cost improvementin the supply chain, diversification of scenarios, andcarbon emission performance improvement, and jointlycreated the best benchmark project for “100% Green UrbanDistribution” with the client.

Scope of Cooperation

Application scenario

4 Others**Logistics centre

**Logistics centre

Transfer stationStore 1Store 2Store 3Repair and Maintenance

1 Forward

direction

2 Reversedirection

3 Allocation

4140SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Vehicle Fuel Consumption ControlSF adopts a dual-pronged strategy of management empowerment and implementation of initiatives. The Companycontinuously enhances the fuel consumption control capabilities of its fuel-powered fleet through digital means, effectivelyreducing fuel consumption. At the management level, the Company formulated and implemented theLump-sum FuelConsumption Plan for Commercial Vehicles, scientifically set fuel consumption standards and targets according to differentbusiness scenarios, and refined reward and penalty rules to achieve efficient utilization of fuel and effective control oftransportation costs. Meanwhile, the vehicle fuel system is applied to monitor the achievement of fuel consumption targetsin real time, and continuously improve fuel management efficiency.In order to ensure the effective implementation of fuel consumption control measures, the Company uses the intelligentfuel consumption management platform to comprehensively and accurately manage vehicle fuel consumption from multipledimensions such as measured fuel consumption and driving behavior norms, and rectifies abnormal high fuel consumptionsituations. In addition, SF regularly conducts drivers’ fuel consumption control and energy conservation and emission reductiontraining, launches self-operated vehicle fuel consumption control courses, and provides targeted training based on the actualneeds of various regions to comprehensively improve drivers’ awareness and skills of fuel saving.

At the same time, SF actively explores large-scale deployment and efficient operation strategies of renewable energyvehicles. It conducts a comprehensive assessment based on multiple factors, including technological developmenttrends, technological maturity, the completeness of energy replenishment infrastructure, and the technical compatibilityand economic feasibility in actual operation scenarios. SF has launched pilot operations of new energy vehicles, such asmethanol, liquefied natural gas (LNG), compressed natural gas (CNG), and hydrogen fuel vehicles, in some areas androutes. In order to ensure that the performance and operating benefits of new energy vehicles are fully verified, in 2024, theCompany piloted the deployment of 10 LNG vehicles, 5 CNG vehicles and 5 methanol vehicles in Shandong, Henan andother provinces. This initiative provides data support and decision-making basis for the Company’s subsequent large-scalenew energy vehicle launch plans. In addition, the number of LNG vehicles put into operation by the Company throughthe co-construction fleet collaborative operation model has exceeded 300, further accelerating the green and low-carbontransformation of logistics and transportation.

Vehicle Energy Replenishment ManagementIn order to achieve accurate assessment and refined management of the energy efficiency of new energy vehicles, SFcontinues to optimize the new energy vehicle system management platform, analyzes and formulates more targeted,scientific and reasonable new energy vehicle energy management strategies, and significantly Improve vehicle operatingefficiency and energy efficiency.With the widespread application of new energy vehicles in logistics transportation, their mileage and usage frequencycontinue to grow, leading to a significant increase in energy replenishment demands. To better meet the energyreplenishment and charging needs of new energy vehicles, SF integrates its own electric charging pile resources andactively collaborates with third-party charging service providers. By pooling resources from multiple parties, it continuouslyoptimizes the vehicle energy replenishment network. In 2024, all the newly self-built charging piles of the Company havebeen connected to the charging platform system. While obtaining the real-time charging energy data of new energy vehicles,it also provides them with convenient and efficient charging service solutions.

Fuel Vehicle ReplacementSF comprehensively considers multi-dimensional factors of fuel-powered vehicles, such as the service life, mileage,loading rate, and exhaust emissions. For vehicles that do not meet the concepts of efficient and green operations as wellas strict environmental standards, the Company formulates detailed plans for phasing them out and steadily advancesthe phase-out process. In terms of fuel vehicle selection and replacement optimization, the Company comprehensivelyimproved fuel efficiency and reduced the impact of exhaust emissions on the environment by upgrading vehicle loadingcapacity, replacing high axle number vehicles and optimizing high fuel consumption vehicles. In 2024, SF replaced morethan 1,300 traditional fuel vehicles.

By replacing vehicle models with insufficientloading capacity, increase transportationloading capacity, reduce operation frequency,and optimize transportation capacity allocationefficiency.

Gradually replace high-axle countvehicles with low-axle count vehicles withbetter fuel economy and environmentalperformance, effectively reducing fuelconsumption.For vehicles with high fuel consumption, fuelconsumption is reduced by implementingmeasures such as fuel consumption calibrationand speed ratio adjustment, and the vehicleswith ineffective improvement are eliminated toimprove the overall fuel efficiency of the fleet.

Strictly implement the “National StageVI Motor Vehicle Pollutant Emission”standards, and phase out vehicles thatdo not meet the standards in advanceto ensure the environmental complianceof the fleet.

Increasevehicle loadingcapacity

Optimizehigh fuelconsumptionvehicles

Replacement

of high-axlecount vehicles

Phase out

vehicles that

do not meetthe standards

in advance

Transportation Routes Optimization

SF comprehensively considers key elements such as express timeliness and transportation distance in groundtransportation, and relies on intelligent algorithm models to plan the optimal route for cargo transportation. Throughfull-process monitoring and optimization measures such as pre-transportation planning and early warning, automated earlywarning and intervention during transportation, post-transportation tidal analysis and overtime processing, the Company canidentify road congestion sections in advance, optimize transportation routes in an all-round way, and significantly improvetransportation timeliness. At the same time, SF uses powerful data analysis capabilities and deep learning technology toaccurately match and scientifically schedule freight routes and transportation resources to achieve the best combination ofvehicles and goods, effectively reduce resource idleness and waste, and comprehensively improve transportation efficiency.

By periodically tracking and monitoring the achievement of fuelconsumption targets, it provides scientific and reliable decision-making basis for fuel management, continuously promotes theachievement of fuel consumption targets, and improves the levelof refinement and comprehensive efficiency of fuel management.

Relying on data technology, establish a driving behaviordatabase covering idle speed, speeding and other dimensions,analyze the relationship between driving behavior and fuelconsumption, and tap the potential points of energy saving.

Applicationof vehiclefuel system

Drivingbehavior

modelconstruction

Based on factors such as route, vehicle type, number of axlesand emission standards, identify and output a list of highfuel consumption vehicles, and require regional managers tostrengthen management and control to provide strong supportfor fuel consumption optimization.

Through regular internal meetings to share excellentmanagement methods (such as car change, guardchange, parking learning, etc.), and continuously improvefuel consumption control measures; We implemented fuelconsumption management support measures for key areas, andsuccessfully achieved a reduction in vehicle fuel consumptionranging from 1% to 5%.

Managementand trainingempowermentFuelconsumptiondata analysis

tool

As one of the important directions for thedevelopment of green logistics, multimodaltransport is characterized by high resourceutilization and is green and low-carbon. Byintegrating railways, highways, waterways, aviationand other transportation modes, it can achieveoptimal allocation and efficient utilization ofresources. While improving quality and efficiency,it creates significant economic and environmentalbenefits. As an industry leader, SF activelyworks with industrial chain partners to exploremultimodal transport modes such as “road-to-rail”and “air-rail-subway intermodal transport” tocreate green logistics solutions and help build asafe, convenient, efficient, green and economicalmodern logistics system.Facing the continuous growth of express delivery business in the central and western regions, SF continues toexplore new ways to reduce logistics costs and improve service quality on the basis of the existing air and groundtransportation networks. In 2024, SF cooperated with China Railway Container Transport Corp., Ltd Xi’an BranchCompany to innovatively launch the “railway + express delivery” integration model and successfully launched acontainer multimodal transport train from Xi’an to Urumqi. From its first launch on March 26, 2024 to December31, 2024, SF has shipped a total of 3,908 boxes and 7,816 TEU goods through this multimodal train, with a totalshipment weight of 38,015 tons, equivalent to the transportation volume of 2,000 17-meter road vans. Compared withtraditional road transportation, railway transportation has significant advantages in terms of green and low-carbon.By transferring a large amount of goods from road to railway transportation, it effectively reduces dependence onhigh-carbon emission road transportation and further optimizes the transportation structure.

SF uses the Country’s rst express e-commerce “road-to-rail” container

multimodal train to carry parcels

SpecialTopic

Multimodal Transport Empowers High-Quality Development ofGreen Logistics

4342SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Green Aviation

SF Airlines actively implements the concept of “double control” of total energy consumption and energy consumptionintensity, and steadily promotes the construction of green aviation. Starting from top-level design, the Company buildsa scientific energy management structure, clarifies the responsibilities of each department, and ensures the efficientdevelopment of energy management. Additionally, the Company continues to introduce advanced management conceptsand technical means, optimize the energy management system, comprehensively promote energy conservation andemission reduction in air transportation, penetrate energy conservation and carbon reduction into each aspect of flightoperation, and set a benchmark for the green transformation of the industry.

SF’s Airlines Energy Management Structure

EnergyConservationand Emission

Reduction

LeadingGroup andManagementCommittee

EnergyManagement

Taskforce

SF Airlines continues to improve its energy management system and has obtained certifications of ISO 50001 EnergyManagement System and RB/T 104-2013 Energy Management Systems for Transport Industry Enterprises, laying a solidfoundation for the refined and standardized development of energy management. In order to ensure the authenticity andreliability of air transport carbon emission data and meet the carbon emission monitoring requirements of regulatoryagencies, SF Airlines invites third-party verification agencies to strictly verify greenhouse gas emission data every year andissue authoritative verification reports. In 2024, SF Aviation successfully passed the annual carbon emission verificationof the Civil Aviation Administration of China and the Ministry of Ecology and Environment, and actively carried out energyconservation supervision work to tap energy conservation potential and continue to improve energy utilization efficiency.SF Airlines has always taken low energy consumption and sustainable operation as its core goals, and is committed toactively implementing the concept of green aviation through strategies such as optimizing aircraft model composition,applying fuel-saving technology, and strengthening aviation fuel monitoring, setting an example for the green developmentof the industry.Optimize Aircraft Model Mix

SF continues to build a “green fleet” with low energy consumption and high efficiency, actively introduces large all-cargoaircraft such as 747 and 767, and increases the proportion of wide-body cargo aircraft gradually. Compared with thetraditional 737 model, the newly introduced large cargo aircraft shows higher carbon emission efficiency and lower fuelconsumption per ton of load under full load. As of the end of 2024, SF had a total of 89 owned cargo aircraft.

● Guide the work of the Energy

Management Taskforce;

● Review and assess the work plans

and measures proposed by theEnergy Management Taskforce.

●

Conduct statistical analysis onaviation kerosene, gasoline, diesel,gas, water, electricity, and otherenergy data;●

Formulate specific energymanagement work plans andmeasures;●

Advance the implementation ofenergy management work plans andmeasures;●

Regularly report the project progressto the Leading Group.

B747

model

Maximum operating load: approximately 115tFuselage length: 70.6mFully loaded range: 11,000kmB767model

Maximum operating load: approximately 56tFuselage length: 54.9mFully loaded range: 6,000kmB757model

Maximum operating load: approximately 30tFuselage length: 47.33mFully loaded range: 5,000kmB737model

Maximum operating load: approximately 14t/16t/23.9tFuselage length: 33.4m/36.45m/39.5mFully loaded range: 3,500km/4,204km/3,750kmApplication of Fuel-Saving Technology

SF Airlines continues to explore and optimize fuel-saving technologies in the field of air transportation. A series of innovativefuel-saving measures such as optimizing flight altitude, refining load management, dynamically allocation of aircraft modelsbased on payload forecast, redispatch

, straight route selection, and Auxiliary Power Units (APU) shutdown in a timelymanner to reduce aviation fuel consumption.

International Routes RedispatchOn the premise of ensuring flight safety, SF Airlinescan precisely reduce the amount of fuel for take-offby implementing a redispatch strategy on internationalroutes, thereby increasing the business payload of theflight. In 2024, SF saved approximately1,235 tons

of aviation fuel and reduced carbon dioxide emissionsby3,745 tCO

e through redispatch.

Straight Route SelectionBy optimizing the flight route, unnecessary detoursand turns are reduced, the flight distance is furthershortened, and fuel consumption is reduced. In2024, SF saved approximately1,920 tons ofaviation fuel and reduce carbon dioxide emissionsby approximately5,822 tCO

e through straightroute selection.

Under the premise of ensuring the safe and normal operation of flights, SF Airlines rationally utilizes international route fuel policies andimplements redispatch strategies for flights to reduce aircraft refueling and lower fuel consumption.

4544SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Strengthen Fuel MonitoringThe Company continues to improve the online fuel management system, dynamically monitors and manages the jet fuelconsumption of each flight, and improves fuel usage efficiency. At present, key fuel-saving indicators such as internationalroutes redispatch, straight route selection have been fully integrated into the system, realizing the full tracking andmonitoring of fuel data from takeoff to landing. In 2024, SF Airlines upgraded its fuel management system, added profileoptimization functions, and intelligently adjust flight trajectory and speed with the help of advanced algorithms to achievecomprehensive optimization of fuel consumption, flight time and emissions. Since the profile batch optimization functionwas put into use, the profile optimization of more than 40 routes has been successfully completed, and the planned fuelconsumption forecast has become more accurate, injecting strong impetus into the development of green aviation.Upgrade Fuel-Saving IncentivesIn order to encourage pilots and dispatchers to actively practice energy conservation and emission reduction while ensuringsafety, SF Airlines has set up a flight landing fuel assessment system. Relying on the online fuel management system, theCompany developed an evaluation system for landing remaining oil index, count fuel savings and rankings every quarter,and award rewards to those with excellent landing remaining oil control, so as to more accurately measure and motivateenergy-saving performance and achieve the effect of energy conservation and emission reduction.Optimize Ground FleetIn order to achieve the goal of “100% electrification rate of vehicle equipment in aviation bases by 2030”, the Companygradually phases out diesel and gasoline vehicle equipment in aviation bases, and actively introduces new energy specialvehicles, including conveyor belt vehicles, lifting platform vehicles and tractors, etc., to accelerate the development ofelectrification of ground fleet. In 2024, the Company continues to increase the purchase of new energy vehicle equipmentand steadily improve the electrification level of vehicle equipment.

Strict Prevention and Control of PollutionSF Airlines strictly implements pollutant emission control and noise pollution control. In terms of pollutant emissioncontrol, the Company has formulated and implemented internal operation management standards for waste engine oilgenerated during aircraft maintenance, and clarified the disposal procedures and requirements for waste fuel, hydraulicoil and lubricating oil. At the same time, the Company actively explores ground operation optimization solutions, replacingtraditional fuel APUs by promoting Ground Power Units (GPUs) supplies, and optimizing aircraft taxiing paths to reducethe inefficient operation time of aircraft engines and effectively reduce exhaust emissions. In terms of noise control, theCompany has also adopted a series of effective noise reduction measures, continuously optimized the take-off and landingprocedures, departure flight procedures and cargo aircraft departure strategies, and reduced the impact of aircraft noiseon the surrounding environment by reducing engine thrust, adopting various technical means such as Continuous DescentApproach (CDA), and regularly carrying out noise monitoring work.

Progress of vehicle equipment electrication at various aviation bases in 2024

Strive to achieve100%electrification ofvehicle equipmentin aviation bases by

2030

The electrificationrate of vehicleequipment reached

53%The electrification rateof vehicle equipmentreached42%

The electrification rateof vehicle equipmentreached17%

The electrification rate

of vehicle equipment

reached22%

EzhoubaseShenzhenHeadquarters

Hangzhou

Base

BeijingBase

SF Achieved the First Commercial Trial Flight of a DomesticAll-cargo Aircraft Using Sustainable Aviation FuelSpecial

TopicAir transportation is one of the key areas for the transportation industry to achieve the national “CarbonPeaking and Carbon Neutrality” goal, and its emission reduction process has attracted much attention.Sustainable Aviation Fuel (SAF), as a direct-use liquid fuel alternative, can reduce carbon emissions byup to 85% compared to traditional aviation fuel. At present, the SAF of the latest HEFA (HydroprocessedEsters and Fatty Acids) can be mixed with traditional aviation kerosene at a 50% ratio without the needfor large-scale modification of existing aircraft engines or infrastructure, bringing new possibilities andprospects for air transportation emissions reduction.In the context of the world’s active response to climate change and promoting the green transformation ofthe aviation industry, SF actively participates in the exploration and innovation in the field of green aviation,and works with partners to conduct in-depth research on the applicability and feasibility of SAF, and deeplyexplore the potential value and emission reduction opportunities of SAF applications. In September 2024,SF Airlines was invited to participate in the sustainable aviation fuel application pilot project seminarheld by the National Development and Reform Commission and the Civil Aviation Administration ofChina to respond to the global 1.5 °C climate strategic goal and accelerate the localized demonstration,promotion and application of sustainable aviation fuel scale. After months of hard work and preparation,on December 19, 2024, an SF Airlines B737 all-cargo aircraft refueled with SAF successfully completedits first commercial flight with sustainable aviation fuel. The refueled domestically produced SAF can beachieved under full life cycle scenarios. With 1,600 kilograms of carbon emissions reduced, SF Airlines hasalso become the first cargo airline to use SAF for autonomous commercial flights of all-cargo aircraft ondomestic flights. In addition, the flight also offsets the carbon emissions generated during the combustionof aviation fuel by purchasing sufficient Verified Carbon Units (VCUs), becoming the first all-cargo flightin the country to achieve carbon neutrality, providing a practical basis for the sustainable development ofthe air cargo industry.

SF Airlines’ rst trial ight using SAF

4746SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Building Green Industrial ParkSF actively builds a green and low-carbon industrial park, focusing on green infrastructure construction and carbonreduction technology innovation, and promoting the green operation of the industrial park from many aspects such asplanning and design, warehouse construction, and operation management. Through various methods such as installingroof photovoltaics, introducing intelligent water and electricity management, and optimizing warehouse space layout, theefficiency and energy-saving benefits of the transit link are comprehensively improved, and the impact of the transit linkon the environment is reduced. As at the end of the reporting period, SF Changsha, Foshan, Wuhu, Wuhan, Chongqingand Jinhua industrial parks were awarded the “Class I 3-Star Green Warehouse” certification by China Warehousing andDistribution Association, Guizhou Industrial Park was awarded the “Guizhou Province Green Logistics Park” certification,and Shunxinhui Hubei Logistics Center achieving phase-one carbon neutrality certification.

Green Warehouse Certication (Wuhu)Green Warehouse Certication (Wuhan)Green Warehouse Certication (Chongqing)Green Warehouse Certication (Jinhua)

Green Warehouse Certication (Changsha)Green Warehouse Certication (Foshan)Provincial Green Logistics Park Certication (Guizhou)

Shunxinhui Hubei Logistics Center adheres to the green and smart supply chain design concept, integratesadvanced technology systems and panoramic automatic equipment, and fully introduces the ESG managementsystem. It has become the first park of Shunxinhui in China to obtain carbon neutrality certification at this stage,and is committed to becoming a model of panoramic automated intelligent zero-carbon industrial park.The first full-scene automated warehouse project designed independently by Shunxinhui within the industrial parkachieves full automation of the entire process, including inbound, storage, and outbound operations, with thesupport of intelligent control systems and automated equipment. This helps to increase the overall labor efficiencyof the park by 20% and enables 24/7 “lights-out” operations. It is expected to reduce carbon dioxide emissions bymore than 30,000 kilograms throughout the year.In addition, the park has introduced distributed photovoltaicprojects, and it is expected that the cumulative carbondioxide emission reduction will exceed 13,000 tons inthe next 25 years; The cold storage adopts innovativerefrigeration system, which reduces energy consumption by20%-30% compared with traditional standard cold storage;Apply new insulation materials, automated power supplysystems, new energy vehicle charging piles, LED lightingand other environmentally friendly and energy-savingtechnologies to comprehensively reduce energy losses.

Promoting Change Through Technology to Create a NewParadigm for Intelligent Zero-Carbon Industrial Parks

Shunxinhui Hubei Logistics Center achievingphase-one carbon neutrality certication

In order to promote the green operation of the industrial park, SF deeply integrates institutional norms with digitaltechnology, gives full play to the synergistic effect, and comprehensively improves the industrial park from key dimensionssuch as operational efficiency improvement, smart energy consumption management and control, rainwater recycling, andenergy-saving equipment installation. Park environmental management capabilities.

Smart energy consumptionmanagement and control●The Company has formulated theEnergy Consumption Management System of Industrial Park, which relies on theintelligent hydropower system to achieve standardized management of public energy consumption and effectively improvethe efficiency of resource use in the park. As of the end of the reporting period, intelligent hydropower systems havebeen installed and operated in 13 industrial parks. Through the monthly energy consumption review mechanism, thehydropower energy consumption in public areas of the operated parks has decreased by 3% (water consumption) and5% (electricity consumption) compared with 2023.

Improvement ofoperational efficiency

● In order to improve the operation and management efficiency of the park, the Company has built a property system,

integrating core modules such as environmental greening, security and fire management, and maintenance and testingof facilities and equipment, which has been fully applied to all operating parks to ensure the efficient and safe operationof the parks.

Rainwater recycling

● The Company adopts permeable concrete technology to collect and recycle rainwater in the park, and uses the recycled

rainwater for greening irrigation, so as to improve water resources utilization efficiency and save water resources.

Installation ofenergy-saving equipment

● The Company continues to promote the laying of new energy charging piles to meet customers’ green travel needs. As

of the end of the reporting period, 32 industrial parks have completed the construction of new energy charging piles,installed more than 300 charging equipment and provided more than 600 charging parking spaces.

In addition, SF continues to promote photovoltaic construction in industrial parks, formulates and implements theIndustrial ParkPhotovoltaic Project Management Implementation System, clarifies the full life cycle management specifications of photovoltaicprojects from site selection to operation, covering supplier qualification review, investment and construction standards, equipmentand material quality control, construction phase management requirements and subsequent operation and maintenancespecifications and other aspects. The Company steadily advances the construction process of photovoltaic projects in industrialparks, and continue to increase the proportion of renewable energy use.Investment and construction progress and future plans of industrial park photovoltaicproject

As of the end of 2024, the company has successfully advanced the construction of 35 photovoltaic (PV) projects in industrialparks. Among them, 24 PV projects have been put into operation, with the total installed capacity of the equipment reaching111 megawatts (MW). The annual power generation from clean energy has exceeded 70 million kilowatt-hours (kWh),further driving the transformation and upgrading of the company’s energy structure.Looking ahead, the industrial park has formulated a clear plan for PV projects. In 2025, SF will continue to invest in andbuild PV projects, with an expected additional installed capacity of 50 MW. By the end of 2025, it is anticipated that theconstruction of all PV projects will be fully completed and operational. At that time, the total installed capacity of PVequipment in the park will reach 170 MW, and the annual power generation is projected to increase by 140 million kWh.This will significantly contribute to the optimization of SF’s energy utilization structure and propel the company towards amore environmentally friendly and efficient energy usage direction.

4948SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Developing Sustainable Packaging

SF continues to deepen the field of green packaging, focusing on the cutting-edge packaging technology, and continuouslyincreasing investment in research and development of sustainable packaging materials. By optimizing the performance ofpackaging materials, breaking through technical bottlenecks and expanding scenario applications, the Company strivesto build a full-link solution of packaging reduction, recycling, harmlessness and standardization, and set a benchmark inthe green packaging industry.

SF recycling woven bag

In 2024SF invested a total of

19.18

million recyclingpackaging containers, and the cumulative number ofcycles exceeded

billion times; By providing recyclablecontainers, it has served a total of430,000

customers and contributed approximately472,000 tons of carbon emission reduction

The polypropylene (PP) disposable sealingstrips used for bundling small expresspackages during transit originally measured41 cm in length. The company's GreenPackaging Solutions team reduced the totallength of these strips to 38 cm by shrinkingthe size of the package label attachment area,thereby decreasing the weight of each strip byapproximately 0.6 grams.This innovative packaging reduction initiativeled to a significant decrease in plasticconsumption, with a total reduction ofapproximately 654 tons in 2024.

Minimizing to the Extreme: Downsizing

Disposable Sealing StripsReduced PackagingIn order to solve the problem of over-packaging in the express deliveryindustry from the source, SF focuses on front-end packaging reduction andstandardization strategies, and promotes packaging technology innovationand material conservation through management practice and technologyempowerment. In terms of management practice, the Company deepened theimplementation ofSF Packaging Operation Standards, carried out work forover-packaging, and formulated standardized packaging operation manualscovering all categories of consignments to ensure the strict implementationof green packaging principles. At the level of technology empowerment,SF has comprehensively upgraded its smart packaging service platform,relying on digital tools to efficiently link with the courier terminal, collectingfeedback from the courier in real time and optimizing the packaging plan, andguiding the courier in real time through intelligent guidance to standardizeand rationalize the packaging process of various consigned items, effectivelyavoiding the problem of over-packaging.Focusing on the “Fengjing Plan”, SF focuses on eight categories of materials,such as plastic bags, adhesive tape, stickers, and seals, to carry outinnovative research and development of reduction, standardization, andscenario. Through lightweight design and material structure optimization,SF significantly reduces the consumption of plastics and base paper. In2024, through a series of packaging reduction measures, SF reduced theuse of base paper by approximately 42,000 tons, reduce the use of plasticsby approximately 155,000 tons, and achieve carbon emission reductions byapproximately 192,000 tons.Recyclable Packaging

SF deeply integrates diversified business scenarios, develops modularrecycling packaging containers adapted to multiple scenarios, realizes thestandardized connection between containers and vehicles, significantlyreduces product damage rates, shortens operation time, and improvesoperation efficiency. In 2024, SF continuously upgraded its circulartechnology chassis capabilities, achieving full lifecycle digital and intelligentmanagement of circular packaging materials. By introducing RFID (RadioFrequency Identification), building intelligent allocation models, and exploringcentralized cleaning models, SF has driven comprehensive improvementsin internal management and circular efficiency. At the same time, SF hasalso improved the disposal process, allowing for orderly recycling andregeneration of circular packaging materials at the end of their life cycle.In the transit package construction process, SF comprehensively promotesrecycled woven bags to replace traditional disposable woven bags. At thesame time, combined with the demand of bags in the entire network, throughthe reuse allocation strategy, efficient allocation of the entire network isachieved to ensure the maximum utilization of resources. At present, theaverage number of times a single recycled woven bag is used reaches 54times. In 2024, 6.34 million new recycled woven bags were launched, furtherexpanding the scale of use of recycled woven bags.Focusing on the diversified needs of customers, industry characteristics andapplication scenarios, the Company has developed and put into use a varietyof professional recycling packaging containers, including pharmaceuticalprecision temperature control boxes, cold transportation recycling incubatorboxes, large standard recycling enclosure boxes, etc. In 2024, SF investeda total of 19.18 million recycling packaging containers, of which 6.26 millionnewly put into recycling packaging containers, and the cumulative numberof cycles exceeded 1 billion times; By providing recyclable containers, it hasserved a total of 430,000 customers and contributed approximately 472,000tons of carbon emission reduction.

Recyclable Packaging of SFPharmaceutical TransportationScenarios – PharmaceuticalTemperature-controlled RecyclableBox

SF innovatively launched circulating temperature-controlled boxes in the pharmaceutical transportation scenarios,using environmentally friendly materials and temperature-controlled technology to successfully replace disposablefoam boxes. Through continuous R&D and material upgrading, the number of recycling times has been greatlyincreased. A single use reduces carbon emissions by around 207 g.Cold Chain Transportation Scenarios– Cold Chain EEP RecyclableInsulated Box

SF cold chain EEP recyclable insulated box is lightweight, pressure-resistant, non-toxic and environmentally friendly,and is superior to traditional white foam boxes, providing a safer and more sustainable packaging option for coldchain logistics. By the end of 2024, the Company had deployed over 500,000 cold chain circulation boxes in coldchain transportation scenarios, with a cumulative usage of over 4.51 million times, reducing carbon emissions byapproximately 3,022 tons.

Bulk Transportation Scenarios

Recyclable Pallet BoxMade of 100% recyclable PP/PE material, it has strong pressure resistance and impact resistance. The nail-freedesign reduces the risk of work-related injuries and reduces the dependence of large industrial and irregular partson traditional wooden frames, wooden boxes and wooden brackets. As of the end of the reporting period, a total ofmore than 370,000 recyclable pallet boxes have been put in and recycled for more than 6,940,000 times.Recyclable Honeycomb PanelsMade of 97% recyclable PP material, it has outstanding impact resistance and can replace air exhaust or honeycombcardboard used for television protection. As of the end of the reporting period, more than 30,000 recycled honeycombpanels have been put into operation, and more than 460,000 recycled times.“π-Box” Recyclable Box

π-Box independently developed by SF is made of environmentally friendly PP material, and the whole box is 97%recyclable, eliminating the need for disposable consumables such as tapes and zippers. As of the end of 2024, atotal of 345,000 units have been put into operation, covering 119 cities, and have been recycled more than 7.54million times.In addition, SF continues to strengthen circular technology capabilities, optimize internal operations management, andcomprehensively enhance circular efficiency. In 2024, the Company actively built an intelligent recycling platform, integratecutting-edge technologies such as the Internet of Things (IoT), big data analysis and cloud computing, achieve comprehensiveinterconnection of logistics systems, and promote digital and transparent management of the entire life cycle of recycling packagingmaterials. In order to overcome the problem of recycling recycled packaging materials, the Company innovatively adopts RFID andQR code dual tracking system to monitor the packaging trajectory in real time to ensure rapid and efficient recycling operations.

Bio-Degradable PackagingSF actively deploys the R&D of biodegradable packaging materials, cooperates with external scientific research institutions anduniversities, continues to deepen cutting-edge technology fields, and accumulates professional knowledge and capabilities. Bycarrying out multi-scenario pilot projects, the practicality and feasibility of various biodegradable materials are verified. As of theend of 2024, SF launched hundreds of millions of fully biodegradable packaging “Feng Bag”, providing a practical model for thelarge-scale application of green packaging.

In November 2024, SF received the “Quality User of Biodegradable Plastics”certificate issued by the Degradable Plastics Professional Committee of the ChinaPlastics Processing Industry Association for its outstanding contributions in thefield of biodegradable plastics, commending the Company’s R&D, production,and promotion of biodegradable plastics. The outstanding achievements showthat the Company has reached the industry-leading level in technologicalinnovation, product quality, and environmental performance, and has madepositive contributions to the development of the biodegradable plastics industry.

SF received the certificate of “Quality User of BiodegradablePlastics”, leading the innovative practice of green packaging

SF Obtained “Quality User ofBiodegradable Plastics” Certicate

5150SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Promoting Circular EconomySF continues to promote innovative practices in the circular economy, fully leveraging its influence and resource integrationcapabilities. Collaborating with upstream and downstream partners in the industry chain, SF builds an efficient andcollaborative recycling and regeneration packaging system through resource sharing, technological collaboration, andinformation exchange. Meanwhile, SF actively fulfills its social responsibilities by conducting diverse environmental protectionpublicity and educational activities, stimulating the public’s enthusiasm and initiative to participate in environmental actions,and contributing to the construction of “Zero Waste Cities.”Recycling Express PackagesSF regards the recycling of express packaging as a key measure to promote sustainable logistics and explore “Zero WasteCities”. By integrating internal and external resources, it comprehensively promotes the closed-loop chain verification andpractice from formulating industry standards and carrying out technical research to realizing express packaging recycling,and continuously optimizes the plastic recycling process. Breaking the traditional linear model of “manufacturing-using-discarding”, the Company committed to building a full life cycle system of “plastic packaging design-production-consumption-recycling-regeneration-High-value application” to minimize the impact of waste on the environment.

Green Packaging Standard

SF actively builds a green packaging standard system topromote the green transformation of the industry. As of theend of 2024, SF participated in the compilation and releaseof 5 national standards and industry standards, includingtheGeneral Service Specifications for E-commerce ReverseLogistics(GB/T 43290-2023),Requirements for RestrictingExcessive Packaging of Express Delivery(GB 45186-2024),Guidelines for the Use of Recycling Packaging of ExpressMail(GB/T 43805-2024),Quality Control Requirements forSales of Fruit and Vegetable Products(20101215-T-442) and

Basic Requirements for Express Packaging of Fresh Products

(YZ/T 0194-2024). At the same time, the bookConstructionand Practice of Green Standardization of Express Delivery

(ISBN 978-7-5026-5483-2, China Standards Press) co-editedby SF was officially published, providing theoretical guidanceand case reference for the practice of green standards in theindustry.

SF “Fengtiao Box” was selected as a green express productdemonstration case of China Express Association

SF not only actively promotes the formulation of green packaging standards, but also deepens the testing of express logisticspackaging materials, the safety verification and evaluation of packaging schemes and the innovative research of packagingstandards by setting up a packaging laboratory testing center. SF Packaging Laboratory Testing Center has comprehensivetesting capabilities, covering 45 packaging categories, more than 140 testing standards and 400 items of testing capabilities.It has obtained the first batch of “Postal Industry Green Packaging Technology R&D Center” qualifications in the industry.And passed ISTA (International Safe Transit Association) certification and CNAS (China National Accreditation Service forConformity Assessment) certification.By continuously increasing investment in basic research, carrying out close cooperation with many universities andbuilding an expert resource database, SF has carried out a number of studies in key fields such as functional packagingtechnology, fresh food preservation temperature control, green technology, packaging carbon emission assessment, andnational enterprise standard standardization to fill the gaps in the industry. In 2024, SF and Zhejiang University weresuccessfully approved for the “14th Five-Year Plan” national key projectDemonstration Application of Cold Chain Logisticsand E-commerce Distribution of Fresh High-Value Agricultural Products, focusing on related research on loss reduction andpackaging reduction in agricultural product distribution links, and Form an industrialization demonstration. At the same time,the “Fengtiao Box” jointly developed by SF and Tsinghua University successfully replaced the foam box and was selectedas a green express product demonstration case of China Express Association, providing an innovative practice model forthe green transformation of the industry.

Standardestablishment

SF, together with GRPG (Joint Working Group on Green RecycledPlastics Supply Chain) and upstream and downstream partnersin the industrial chain, jointly formulated and published the groupstandard “Implementation Rules for Design Evaluation of EasyRecycling and Easy Recycling of Plastic Packaging-Plastic FilmExpress Packaging Bags and Inflatable Fillers”, which stipulatedthe evaluation index system and evaluation method of plasticfilm express packaging bags in terms of easy recycling andeasy recycling design, and provided clear and operable technicalguidelines for the industry to produce and use plastic film expresspackaging bags.

Technological

innovation

SF cooperated with upstream and downstream companies tojointly overcome technical problems in express packaging, andsuccessfully developed “Double Easy” (easy to recycle, easyto regenerate bags. This bag maintains excellent mechanicalproperties while incorporating up to 30% post-consumer recycledresin (PCR), in compliance with the national standards for expressbags, thereby realizing the value of single-material easy recycling.

SF’s “Double E” packaging bagsamples were exhibited at thefth meeting of the United Nations“Plastics Convention” in 2024

Application

Practice

SF has piloted full-process closed-loop recycling projects for plastic packaging waste in Shanghai, andjoined hands with upstream and downstream industrial chains to collect discarded express bags and recyclethem for granulation. Through technological innovation, realize the transformation of high-performanceproducts and open up the circulation loop. In 2024, SF successfully completed the batch replacement ofapproximately 47 million “Double E” packaging bags in Beijing, promoting the large-scale implementationof circular economy.

Express Easy Recycling, Easy Regenerating Recycling System

The regeneration

formula

Manufacturers ofplastic products

Film blowing and bag

manufacturing

The usage

Wastecollection

Consumers

Formula RawMaterial Supply

Provide technicalsupport for formulation

design of recyclablepackaging materials

Provide PEmaterial withtraceable qualityand origin

Community

dropRecycling, cleaning and pelletizing

Provide resource utilization of

the recycled materials

GRPGDouble E markFilm blowing, printing,

bag manufacturing

Terminal expressoutlets/stationsTransportationLast mile delivery

Waste disposal

Discarded plastic films

Recycling and

pelletizing

5352SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

On October 30, 2024, the “Zero-Carbon Future, Prosperous Journey” SF Circular Economy Practice Project andSmart Recycling Bin Installation Ceremony were held in Shenzhen, marking the official launch and use of the first“Smart Recycling Bin” jointly established by SF and a recycling company.The first smart recycling bin landed at the Shahe large-scale outlet in Xili Street, Nanshan District, Shenzhen. Therecyclable categories include waste paper, plastic, metal, fabric, etc. SF courier and surrounding residents canopen the cabinet by scanning the code on their mobile phones. After the waste express packaging is put into thecabinet, the smart recycling bin can automatically calculate the weight and settle the amount immediately. Therecycling staff will recycle and transport it to the recycling center in time before the box overflows. As of the endof December 2024, SF has put 15 smart recycling bins in 15 operation sites in Shenzhen, and has recycled a totalof 3,905 kg of waste materials.As the industry’s first new end-of-terminal recycling model, this project takes the lead in implementing extendedproducer responsibility, promoting the “integration of two networks” of renewable resources, and promoting efficientwaste recycling. At the same time, the demonstration effect of point-to-area enhances social environmentalawareness, and provides an innovative practice model for the industry to deepen the refined management ofsustainable packaging and improve the recycling chain.

SF collaborates with recycling companies to deploy smart recycling bins at the end-point express delivery outlets

Cultivating Public Awareness of Environmental ProtectionSF actively conveys the concept of green environmental protection in society and is committed to building an environmentalprotection ecosystem that involves public participation. By planning and carrying out various forms and rich contents ofenvironmental protection themed activities, the Company continues to stimulate the public’s attention and enthusiasm forparticipation in environmental protection in innovative ways, and promote the transformation of environmental awarenessfrom concept to action. From the “Zero Carbon Star Wish” public welfare video to the green carbon energy platform, fromthe carton renovation activities of the SF “Box” companion program to the “New Life for Old Shoes” program in universities,SF integrates the concept of environmental protection into the daily life of the public in diversified interactive forms. Guideall sectors of society to jointly practice green lifestyles and inject strong impetus into promoting the whole society to jointlybuild a “zero-carbon future”.

SF’s “Smart Recycling Bin” Landed in Shenzhen, Openinga New Practice of Circular Economy

Special

Topic

Since its launch in 2020, the SF “Box” Companion Program has continued to advocate the concept of green life,calling on the public to give full play to their creativity and hands-on ability, DIY transformation of idle expresscartons, and give waste resources a second life.In 2024, the SF “Box” Companion Program enters its fifth year. SF initiated a creative cardboard box transformationcampaign through both online and offline channels, encouraging the public to repurpose idle express cardboardboxes into versatile “treasure boxes” for daily life (such as a “spare” box for car travel, a “spare” box for homestorage, a “spare” box for pet homes, a “spare” box for lifestyle essentials, a “spare” box for moving and packing,etc.), providing help and inspiration for daily life.SF launched the creative transformation challenge online, encouraging usersto share the coup of secondary utilization of cartons by posting picturesand videos, displaying creative transformation works, and promoting thewidespread dissemination of green concepts on social platforms. At thesame time, Nanjing, Chongqing and Changsha carried out offline limited-timepop-up activities, and built creative devices and photo walls with expresscartons, so that the public could immerse themselves in the practical valueand environmental protection beauty of cartons.Over the past five years, the “Box” Companion Program has empoweredenvironmental protection with creativity and transformed green conceptsinto vivid practices. It not only provided the public with an interesting wayto participate in environmental protection, but also became an innovativemodel for SF to practice sustainable development and lead a green lifestyle.

SF “Box” Companion Program: Give Waste Cartons A New Life

SF “Box” Companion Program

In June 2024, SF and Nike joined hands with 53 universities across the countryto launch the “Old Shoes Recycling ? Easy Start” graduation season specialevent to provide college students with a green practice platform for recyclingold things.SF was responsible for campus promotion and logistics support for oldshoes recycling, providing discount coupons and customized woven bagsfor graduation season for students who participate in used shoes donation,combining environmental protection actions with graduation delivery needs,so that students can not only participate in public welfare, but also enjoybenefits. This innovative model not only stimulates students’ enthusiasmfor participation, but also rejuvenates old shoes, transforms them intoenvironmentally friendly materials for sports venues.The “New Life for Old Shoes” program integrates the concept of environmentalprotection into the graduation season of universities through interesting andscene-based design, which has become another innovative practice of SFto promote the popularization of green lifestyle and injects new vitality intoenvironmental protection education in universities.

SF × Nike “New Life for Old Shoes” Program: Make theGraduation Season More Meaningful

SF × Nike “New Life for Old Shoes”Recycling Program

5554SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Practice Green OperationSF has always implemented the green development concept of environmental protection and resource friendliness, fullyintegrated the low-carbon concept into office operation scenarios, continuously improved the environmental managementsystem, formulated and implemented theMeasures for the Management of Water and Electricity in Property Sitesand theMeasures for the Management of Regional Office Space Use, scientifically and rationally utilized resources, strengthenedemission management, continuously improved employees’ awareness of environmental protection, jointly created a greenoffice environment and built a resource-saving enterprise.Improving the Environmental Management SystemSF strictly complies with laws and regulations related to environmental protection, such as theEnvironmental ProtectionLaw of the People’s Republic of Chinaand thePollution Prevention and Control Law of the People’s Republic of China,and continues to improve its environmental management system to ensure environmental compliance.The Companyformulated the Regulations on the Management of Identification and Evaluation of Environmental Factors, standardizedthe process of identification of environmental factors, clarified the principles of evaluation of environmental factors, andstrictly controlled important environmental factors through theForm of Identification and Evaluation of EnvironmentalFactors. In view of the potential environmental risks in the process of business operation, the Company regularly conductsrisk assessment, formulates preventive measures, and continuously improves the emergency response mechanism forenvironmental emergencies to ensure that it can respond to environmental emergencies quickly, orderly and efficiently,and effectively control, mitigate and eliminate environmental risks.The Company has formulated theEnvironmental Policyto ensure that environmental protection measures are activelytaken in daily operation activities, reduce the impact on the environment, and earnestly fulfill the Company’s commitmentsin sustainable development and green operation. During the Year, SF did not have any major environmental incidents andwas not subject to any major administrative penalties due to environmental issues.

SF’s commitment to environmental protection:

●Strictly abide by all applicable environmental-related laws, regulations and industry regulations in the

location of operation, such as theEnvironmental Protection Law of the People’s Republic of China

and thePollution Prevention and Control Law of the People’s Republic of China, and clearly definethe responsibilities of relevant business departments of the Company in the process of implementingenvironmental policies to ensure the effective implementation of policies.●Actively adopt diversified energy conservation and environmental protection measures for different

business scenarios, minimize the impact of all operational activities on the environment, and improvethe Company’s environmental and energy performance.●Committed to setting and continuously optimizing specific targets and indicators in the fields of water

resources management, waste treatment and energy utilization to reduce adverse impacts on theenvironment and promote environmentally friendly operations.●Actively communicate and cooperate with partners, customers and other stakeholders in the upstream

and downstream of the value chain in environmental protection, and strive to enhance the understandingand recognition of the Company’s environmental management work by all stakeholders.●Actively organize environmental education and training to ensure employees understand the specific

impact of daily work activities on the environment, and enhance employees’ environmental awarenessand sense of responsibility.The Strategy Committee of the Board of Directors/Sustainable Development Working Group is responsiblefor supervising and ensuring the implementation of the above commitments.

SF has established a sound environmental management system and energy management system, and continues to promotethe completion of environmental and energy management system certification in each business segment. As of the end ofthe reporting period, all of the Company’s main business segments have passed the ISO 14001 environmental managementsystem certification. In addition, SF Airlines has obtained ISO 50001 Energy Management System Certification and RB/T104-2013 Energy Management System for Transport Industry Enterprises.

S.F. Express Group (Shanghai) Express Co., LtdShenzhen SF International Supply Chain Management Co., LtdGZ SF Pharmaceutical Supply Chain Co., LtdShenzhen Chengfeng Business and Enterprise Services Co., LtdShenzhen S.F. Taisen Holding (Group) Co., LtdWuhan SF Zhida Logistics Co., LtdShenzhen SF Freight Co., LtdShanghai Shunxiaofeng Distribution Co., LtdJiangxi Fengyu Shuntu Technology Co., LtdGuizhou S.F. Express Co., LtdZhejiang Shuangjie Supply Chain Technology Co., LtdFengyi Technology (Shenzhen) Co., LtdSuzhou Fengyutai Enterprise Management Co., LtdS.F. Express Co., LtdSF Multimodal Transportation Co., LtdShenzhen Fenglang Supply Chain Co., LtdShenzhen Xingshun Intelligent Supply Chain Co., LtdShenzhen SF Comprehensive Logistics Service Co., Ltd

ISO 14001 Environmental Management System

5756SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Waste Management

SF places great emphasis on waste management during its operations. In line with business development and the realitiesof daily operations, the Company sets the core goals of waste reduction at the source and enhancing the capacity for wasterecycling. Company has formulated and fully implemented the waste classification system, set up clear classification signsin office areas and operation sites, and formulated clear treatment procedures for different types of waste to ensure thatwaste is properly disposed of and promote the full implementation of green operation. In 2024, the Company recycled 41million used cartons and dispose of 900 tons of used work uniforms.

In addition, the Company actively carries out waste classification training activities to comprehensively strengthenemployees’ awareness and practical level of waste classification. The training content covers basic knowledge of wasteclassification, practical operation procedures, relevant laws, regulations and policy requirements, etc., helping employeesto fully grasp the key points of waste classification and integrate the concept of green office into their daily work. As of2024, SF has set up more than 110 garbage classification and recycling points in various industrial parks and organized23 training sessions on various types of garbage classification.Noise and Exhaust ManagementIn order to ensure the compliance of noise and exhaust gas emissions, the Company actively carries out the identification,evaluation and management of exhaust gas and noise to reduce the impact of operations on the surrounding environment.In 2024, SF did not experience major administrative penalties or criminal responsibilities due to pollutant discharges.In terms of noise pollution control, SF gives priority to glass materials with noise reduction and sound insulation performanceduring the construction and operation of office buildings, and upgrades some equipment. In the planning and managementof the industrial park, the company fully considers the actual situation of the geographical environment and populationdistribution of the area where the industrial park is located, and scientifically designs and installs sound insulation wallsaround the park to effectively isolate and reduce noise interference to the surrounding environment.In terms of exhaust emission control, SF strictly follows relevant national regulations and implements a strict vehicle accessmechanism to ensure that all purchased vehicles meet environmental emission standards. In addition, by implementinga regular annual inspection system, the Company comprehensively monitors vehicle exhaust emissions to ensure that allvehicle exhaust emissions meet standards and reduce the emission of air pollutants.Water Resources ManagementSF has formulated water use management systems such as theMeasures for the Management of Water and Electricityin Property Sitesto standardize water use behaviors. The company sets water-saving targets aimed at maximizing waterreduction and enhancing water efficiency. By strengthening the maintenance of water facilities and promoting water-savingconcepts, SF enhances employees’ awareness of water conservation, controls water consumption, improves the efficiencyof water resource utilization, and achieves water savings. The Company’s sources of water are all municipal water, andit does not involve the use of large quantities of water or the discharge of wastewater in the course of its operations, nordoes it engage in products and businesses that are prone to cause pollution to water resources.

General wasteRecyclable wasteHazardous waste

For general wastes such asdomestic garbage, discardedstationery and paper shreds,after classified collection, theyare promptly transported tothe designated waste storagelocation, handed over to thesanitation department fortreatment, and the treatmentsituation is recorded in detail.

Recyclable wastes such as paperproducts and used work clothesare collected in designated areas,and according to the actualsituation of recyclables, qualifiedrecyclers are contacted in a timelymanner for door-to-door recycling,so as to maximize the utilizationof resources.

Hazardous wastes such as wastelamp tubes, batteries, wasteprinter ribbons/toner cartridges,etc. are collected centrally bythe Company and then handedover to third-party organizationswith professional qualificationsfor unified recycling.

Energy Utilization

As an industry leader in sustainable development, SF is well aware of the importance of energy utilization efficiency andclean energy transformation in reducing environmental impact and promoting green development of the industry. Energyutilization has risen from hidden costs to a significant factor that embodies both risks and opportunities, profoundlyimpacting the company’s business model, daily operations, long-term strategy, operational performance, cost control, andother aspects. Based on its own operating characteristics, the Company has gained insight into the energy-saving potentialin various aspects of business operations, continuously optimized the energy management system. By gradually improvingthe energy structure, reducing the use of fossil fuels, and exploring application scenarios for clean energy, the companypromotes efficient energy use and green transformation, setting a benchmark for sustainable development in the industry.

Governance

SF strictly abides by theEnergy Law of the People’s Republic of China, theEnergy Conservation Law of the People’sRepublic of Chinaand other relevant laws and regulations, and continues to improve its energy management system.Relying on the sustainable development governance structure, the Company deeply integrates energy utilization into theESG management system to ensure that energy management is closely integrated with the overall sustainable developmentstrategy.As the decision-making body of sustainable development management, the Strategy Committee of the Board deeplyparticipates in the discussion and research on important issues such as energy efficiency improvement and clean energytransformation, continuously identifies risks and opportunities related to energy management, and promotes the formulationand implementation of energy utilization strategies and goals from top to bottom. At the executive level, key businessdepartments related to energy management formulate energy management rules and regulations that fit their own businessdevelopment characteristics according to the Company’s energy management strategies and objectives. At the same time,in order to ensure the effective promotion of energy management, relevant business departments regularly report theprogress of energy management related objectives to the management, so as to adjust strategies in a timely manner andensure the efficient and orderly progress of energy management.StrategyUnder the background that the world is actively implementing the concept of green development and energy transformationhas become the trend of the times, scientific management of energy is crucial to the sustainable development of enterprises.In order to identify and evaluate the impact of risks and opportunities related to energy utilization on the company, SF sortsout and identifies risks and opportunities related to energy management from multiple dimensions such as impact degreeand time range through extensive industry research and stakeholder communication based on the business developmentlayout and characteristics, and deeply analyzes the characteristics and optimization direction of the company’s energyconsumption structure, thus providing strong support for the company to formulate a scientific and reasonable energymanagement strategy.

Implement a regularequipment inspectionmechanism to promptlydiscover and solvehidden dangers ofwater leakage, ensurethat all water facilitiesmaintain good operatingconditions, effectivelyprevent the phenomenonof “running, leaking,dripping and leaking” andreduce the waste of waterresources.

Build an outdoorrainwater reuse poolin the industrial park,and use the recycledrainwater for greeningirrigation, garagecleaning and roadwashing to reduce tapwater consumption.

Post water-saving signsat water points in officeand operation areas,and regularly updatepublicity content toenhance employees’awareness of water-saving and guide allemployees to developgood water habits.

Promote advancedwater-saving irrigationtechnologies, adjustand optimize irrigationmodes to replacetraditional floodirrigation methods andimprove greening waterefficiency.

Equipment inspection and

maintenance

Optimize water use for

greening

Rainwater recycling

Carry out water-saving

publicity

Specific water saving measures include:

5958SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Type of risk/opportunityTime rangePotential financial impactCountermeasures

Transformationrisks

Policy

Short-termMedium-termLong-term

● With the increasing demands for

clean energy utilization and energyefficiency both domestically andinternationally, and the increasinglystringent energy-related policies andregulations, companies may need toinvest more funds and technologiesto improve the energy use structureand efficiency, thereby increasingcompliance costs and operatingcosts.

● Develop and apply green technologies to help enhance

quality and efficiency and reduce carbon emissions acrossend-to-end aspects of the supply chain.– Transfer link: Optimize warehousing resource

allocation based on data, introduce fully automatedsorting and site management systems, andenhance the efficiency of warehousing and transferoperations, thereby improving energy utilizationefficiency;

– Transport link: Intelligent maps are used to plantransportation routes, and the optimal route solution isprovided through intelligent algorithms in combinationwith factors such as express timeliness and distance.At the same time, relying on data analysis and deeplearning technology, it integrates freight routes andtransportation resources to achieve accurate matchingof vehicles and goods and improve transportationefficiency;– Terminal collection and dispatch link: throughthe application of intelligent technology, expandthe scope of business delivery and provideefficient, economical and low-carbon logistics andtransportation services;

● Maintain a high level of attention to the dynamics of

policies and regulations related to external energymanagement, organize professional teams to continuouslytrack the updates of policies and regulations and thechanging trends of industry standards, and make strategicdeployments in advance;

● Actively carry out training on energy saving and

consumption reduction, formulate incentive plans for fuelsaving and energy saving, and stimulate employees’enthusiasm and initiative to participate in energy savingactions.

Market

Short-termMedium-termLong-term

● Fluctuations in the market prices of

clean energy (such as sustainableaviation fuel SAF, green electricity,etc.) and fossil fuels (such asgasoline, diesel, etc.) may leadto increased transportation andwarehousing costs for companies.

● Actively explore various energy forms such as solar

energy and hydrogen energy, build a scientific, reasonable,stable and efficient energy supply system, and reducedependence on a single energy source;

● Continue to gain insight into the dynamics of the global

energy market, implement diversified procurementstrategies, select cost-effective energy suppliers fromthe dimensions of price competitiveness, quality stability,supply reliability and sustainable development practices,and establish long-term, stable, mutually beneficial andwin-win cooperation relationship to ensure efficient andstable energy supply.

Opportunity

ProductsandServices

Short-termMedium-termLong-term

● With the rapid development of

emerging energy industries suchas new energy vehicles and solarphotovoltaics, the transportationdemand of new energy products inthe logistics market has increasedsignificantly, which will help increasethe company’s revenue in newbusiness areas.

● According to the operation situation and site conditions,

expand the construction of distributed photovoltaics inthe industrial park in an orderly manner, and realize theelectricity consumption mode of “self-use and surpluselectricity on the grid”;

● Keep up with the development trend of new energy

technology, conduct in-depth research on technologicalbreakthroughs and application potential in key fields suchas sustainable aviation fuel SAF and new energy vehicles,explore the application scenarios of new energy technologyin logistics and transportation, and further enhance thecompany’s low-carbon transportation capabilities.

Risk Management

SF deeply integrates ESG risks including energy utilization into the enterprise risk management framework, establishes acomprehensive management mechanism and process for energy utilization risk identification, assessment, control and supervision,and constructs a closed-loop risk management process of “risk environment analysis – Goal setting and risk identification of riskcontrol -risk assessment-risk response-supervision and improvement” to ensure that energy utilization-related risks are effectivelyidentified, managed and disclosed.As the highest decision-making body for risk management, the Risk Management Committee of the Board is responsible foridentifying, preventing and monitoring ESG-related risks including energy utilization, and formulating corresponding risk responsestrategies; As a subordinate body of the Risk Management Committee of the Board, the Risk Committee is responsible for reviewingthe risk management system, system, process, authorization, major risk prevention and response measures, including energyutilization risks. In order to effectively implement the countermeasures against energy utilization risks, the Company continuesto promote the improvement of the energy management system of key business departments according to the actual operationsituation, so as to ensure the orderly progress of energy management.Risk environment analysis

Pay attention to and analyze changes in the internal and external environment brought aboutby energy utilization efficiency, energy transition, etc.Goal setting and riskidentification of risk control

Combined with the risk control targets set at the Company level, identify and sort out thelist of energy-related risks.Risk assessment

Based on the possibility of risks related to energy utilization and the degree of impact onthe company’s goals, the identified risks are prioritized, and the risks to be focused on andprioritized for management and control are determined.Risk responses

The Board comprehensively considers the risks and benefits brought by energy transition,brand reputation and social responsibility and other factors, and review and formulateeffective risk response plans based on risk analysis.Supervision and improvement

Continuously follow up, monitor and manage the disposal of risks related to energyutilization. In daily work, continuously optimize the energy management capabilities bystrengthening the use of clean energy and improving energy efficiency.Metrics and Targets

Efficient utilization and scientific management of energy are not only key indicators to measure the Company’s environmentalperformance, but also core elements to achieve sustainable development strategy. As a leading enterprise in the logisticsindustry, SF has always regarded energy management as its core work, reduced energy consumption through continuoustechnological innovation, actively promoted the application of renewable energy, accelerated the substitution of fossil energy, andcomprehensively promoted the transformation and upgrading of the energy structure.The company has established an indicator system with efficient energy utilization as the core, and continuously improves thelevel of energy management through dynamic monitoring and continuous optimization. The Company regularly evaluates energyutilization performance to ensure the achievement of goals, and promotes the continuous improvement of energy utilizationefficiency through refined management, laying a solid foundation for achieving green and low-carbon development.

IndicatorProgress of action

Short and medium-termfuture planning/goal setting

Clean energy

As of the end of 2024, SF had a total of 35 industrial parkphotovoltaic projects in operation and construction, with atotal installed capacity of 145 MW.In 2024, the construction of rooftop photovoltaic powerstations in 24 industrial parks has been completed, with anoverall installed capacity of more than 111 MW. The annualrenewable energy power generation exceeds 70 millionkWh, and clean energy usage exceeds 42 million kWh.

It is expected that all photovoltaic projectswill be completed and put into operationby the end of 2025. It is estimated thatthe total installed capacity of photovoltaicequipment in the industrial park will reach170 MW, and the annual power generationwill exceed 140 million kWh.

In order to comprehensively improve energy efficiency and ensure the realization of energy utilization targets, the Companysystematically promoted a series of energy conservation and consumption reduction measures, and achieved remarkableresults.

6160SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Safeguarding Ecological Environments

SF has always adhered to the concept of green development and is committed to achieving the harmonious coexistenceof corporate development and ecological environment protection. By vigorously promoting a number of green operationinitiatives and actively participating in diversified environmental protection actions, we strive to reduce the impact of ourown operations on the natural environment and biodiversity, fulfill our commitment to green development with practicalactions, and contribute to building a beautiful homeland where humans and nature coexist harmoniously.Conservation of Biodiversity

Biodiversity is not only the cornerstone of the stable operation of ecosystems, but also the key support for the sustainabledevelopment of human society. SF actively promotes biodiversity conservation, refers to and adopts the BiodiversityImpact Assessment Tool (BIA) and the Biodiversity Risk Filter (BRF) developed by the World Fund for Wildlife (WWF) toidentify and pilot evaluate the degree of direct or indirect correlation between the company’s main industrial park operationsites and nature. Among them, according to the monitoring results of the Biodiversity Impact Assessment (BIA) tool, thecompany maintains a sufficient safe distance between major domestic industrial parks and nature reserves

, and thepotential impact of the company’s operating activities on the surrounding protected areas is manageable and controllable.within the range of control.SF is deeply aware of the important value of the ecological environment to the sustainable development of enterprises,human well-being and earth health, and is committed to optimizing site selection, reducing noise pollution, carrying outforest planting, restoring and protecting ecosystems in the planning and operation of major operating sites, and strivingto reduce the risk of damage to biodiversity and implementing conservation actions.

Energy-saving

equipmenttransformation

EnergySaving

in Office

Equipment

Energy

monitoringmanagement

Industrial park lighting optimization: based on the analysis of energy consumption data in public areas of each park, SF implemented

energy-saving renovation for 23 industrial parks with high lighting energy consumption in public areas. Significantly reduce lightingenergy consumption in public areas by replacing intelligent sensor switches and energy-saving lamps. As of the end of the ReportingPeriod, the replacement of 234 lighting sensor switches and 678 sets of energy-saving lamps has been completed.Intelligent electrical box deployment: operating sites are equipped with intelligent electrical box systems to accurately identify powerwaste during idle periods through real-time power consumption data collection and analysis, and combine automatic timing controland manual intervention to effectively reduce unnecessary power consumption. By the end of 2024, 779 outlets had completed thedeployment of intelligent electric boxes, saving 3.676 million kWh of electricity annually, equivalent to reducing carbon emissionsby 1,973 tons.

Equipment upgrade and management: comprehensively promote energy-saving office equipment (such as computers and printers),optimize the number of equipment configurations, and reduce standby energy consumption. At the same time, a strict electricityconsumption system is formulated, requiring employees to turn off the power supply when the equipment is not in use for a longtime, cut off the power in time after charging is completed, and ensure that the power supply of all office equipment is turned offafter work to avoid waste and potential safety hazards caused by overcharging.

Intelligent monitoring system: Establish a complete energy monitoring and management system, install intelligent energy meteringinstruments in office areas, and track power consumption data in real time. Through data analysis, we can accurately identify energywaste links, formulate targeted improvement measures, and realize the refinement and intelligence of energy management.

The nature reserve here includes national parks, nature reserves and natural parks, as well as world natural heritage and internationallywetlands of international importance. The relevant scope is delineated according to theGuiding Opinions on Establishing a Nature ReserveSystem with National Parks as the Main Body, theConvention Concerning the Protection of the World Cultural and Natural Heritageand the

Ramsar convention.

As of the end of 2024, SF Forest has planted more than 1,647 acres of carbon-neutral forests in Hebei and Sichuan,with a total of more than 1 million trees planted. These trees are expected to absorb more than 200,000 tons ofcarbon dioxide in the future growth process, contributing to mitigating global warming and helping to restore and improvelocal ecosystems.

SF Forest

Since 2020, SF has continued to carry out the “SF Forest-Carbon Neutrality” project (referred to as “SF Forest”) as the company’sinnovative exploration in the field of carbon neutrality. The project is based on online “SF forest” application and offlinecarbon-neutral forest planting, and has set up nature reserves in Xizang and Sichuan to collaboratively promote climate changeresponse and biodiversity protection. At the same time, SF advocates the concept of “zero carbon” to employees, customers andthe public through community care and public welfare publicity, and is committed to becoming a leader in the field of sustainabledevelopment.Carbon Neutral Forest Planting

Through scientific planning and careful implementation, SF forest not only effectively offsets greenhouse gas emissions, butalso promotes ecological protection and restoration, and improves forest ecosystems. Through multi-party cooperation with thegovernment, enterprises and social organizations, SF has explored a path of green development with multi-party participation,win-win innovation, multiple benefits and local benefits in the fields of climate change response and ecological protection andrestoration. In 2024, the company successfully completed the planting tasks of carbon-neutral forests in Sichuan Seda Phase IIand Hebei Laiyuan projects, with a cumulative planting area of 990 acres and a total of 660,290 trees planted. At the same time,the Sichuan Seda Phase I carbon neutral forest project also successfully passed the third-party verification and acceptance. Theafforestation area verification rate reached 100%, the overall tree survival rate reached 85%, and the afforestation tree species,afforestation density and infrastructure all met the established requirements. It fully proves the scientific and standardization ofproject implementation.

SF Forest Online ApplicationSF deeply integrates green concepts with Internet technology, and launches the “SF Forest” online application since 2021,creating a new model of environmental protection interaction. Users can participate in environmental protection actions throughonline “Cloud tree planting” and track the cultivation process, growth trajectory and environmental protection results of forestsin real time. The application has built-in rich interactive functions such as measuring carbon emissions, tree adoption andcultivation, and stimulates users’ enthusiasm for participation through the task reward system.

SF carbon neutral forest planting site

As of the end of 2024, the “SF Forest” online application has attracted more than 120,000 users to participate,adopted more than 100,000 saplings. These saplings, which carry the love and expectation of users, will be plantedon the ground, adding more green vitality to the earth.

6362SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Biodiversity Public Welfare ActivitiesAt a time when biodiversity conservation has become a global development consensus, SF actively fulfills its corporatesocial responsibility and focuses on the protection of ecological functional areas and endangered species. Throughcomprehensive scientific investigation, we find out the background data of resources, strengthen the protection of keyecological functional areas and rare and endangered species, maintain ecological balance, and continue to explore newmodels of biodiversity protection.SF works closely with scientific research institutions and social organizations, integrates resources from all parties, deploysbiodiversity conservation projects in Sichuan, Xizang and other places, and promotes biodiversity conservation to a newheight.

In 2024, the SF Foundation launched in-depth cooperation with theShanshui Nature Conservation Center to jointly open a new chapter inecological protection in Medog County and Zayu County of the XizangAutonomous Region. The two sides planned to integrate resourcesin the next three years, and laid a solid foundation for the smoothdevelopment of scientific research and local ecological protectionwork by implementing animal monitoring surveys and backgroundresource surveys, organizing community patrol teams, establishingpilot projects for human-animal conflicts, and building a popularscience education system in protected areas.

Comprehensive Pilot Project of Wildlife Protection andEcological Development in Southeast Xizang

SF Forest Project Team Investigation on

Biodiversity in Southeast Xizang

Starting from 2023, the SF Foundation has cooperated with the China Green Carbon Foundation to begin thestrategic deployment of biodiversity conservation actions. After more than a year of careful preparation, in July2024, the two parties launched the “White-lipped Deer Biodiversity Special Protection Project” in the NianlongProvincial Reserve in Garze Prefecture, Sichuan Province. Through the implementation of comprehensivescientific investigations, they found out the local biodiversity resources. Basic data provide scientific basis forwhite-lipped deer public welfare protection actions.

Sichuan Seda Nianlong Nature Reserve White-Lipped DeerPublic Welfare Protection Project

White-lipped deer in Seda Nianlong Nature Reserve, Sichuan

Addressing Climate ChangeClimate change is a major challenge of the whole world, and its impact has profoundly touched all social and economic fields. Asan important promoter of the green and low-carbon transformation of the logistics industry, SF deeply understands the urgencyand complexity of climate change, continues to pay attention to the risks and opportunities brought by climate change, and iscommitted to building a sustainable logistics supply chain. The Company actively responds to the national “Carbon Peak andCarbon Neutrality” strategy and the 1.5 degree Celsius temperature control target of the Paris Agreement, refers to the frameworkof the Task Force on Climate-related Financial Disclosures (TCFD), incorporates climate change issues into the corporategovernance system, comprehensively considers the development trend of policies, industries, markets and technologies, carriesout systematic identification and analysis of climate risks and opportunities, continuously strengthens climate risk management,promotes green operation transformation, and promotes sustainable development.GovernanceSF is deeply aware of the far-reaching impact of climate change on the company’s strategic planning and business operations,and regards climate change governance as an important part of the environmental, social and governance (ESG) system. TheStrategy Committee of the Board is responsible for supervising and managing various sustainable development matters includingclimate change response, incorporating climate risks and opportunities into the Company’s strategic planning, and formulatingcorresponding management measures. In order to ensure the effectiveness of the implementation of various measures, theCompany has incorporated quantitative indicators related to climate change into the performance appraisal system at all levelsto promote the continuous improvement of the Company’s ESG governance level.

SF Climate Change Related IncentivesManagementGeneral Staff

SF’s management compensation is linked toclimate change-related performance to facilitateand accelerate the implementation of SF’s climatecommitments and goals.

SF formulated and implemented theFuel Consumption Lump SumPlan for Operating Vehicles, scientifically set fuel consumptionstandards according to different business scenarios, clarified fuelconsumption targets, refined fuel consumption reward and penaltyrules, provided targeted incentives to drivers, improved vehicletransportation efficiency, and achieved energy conservation andconsumption reduction goals.

6564SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Daily ManagementDecision-making SupervisionImplementation

The Board of Directors, acting as the highest decision-makingbody for SF’s sustainable development and response toclimate change, is responsible for the strategy development,supervision and policymaking on ESG and climate changeissues to ensure the implementation departments takeeffective measures to address ESG risks and impacts ofclimate disasters. The Strategy Committee delivers ESG,and climate goals and regularly discusses trends, risks andopportunities to keep information updated. Meanwhile, SFhas incorporated carbon reduction targets into its corporatestrategy, tracked them as a key issue to follow up, and linkedthem with management performance to ensure effectiveimplementation of ESG and climate governance.

The Sustainability Leadership Team composed of ChiefStrategy Officer (CSO), Chief Financial Officer (CFO), ChiefOperating Officer (COO) and Chief Human Resources Officer(CHO), reporting to the Strategy Committee of the Board ofDirectors, is responsible for setting and regularly reviewingESG and climate change related targets to ensure that ESGand climate related risks are fully considered and addressedwith SF’s decisions, investments and operations.

As a professional working body, the SustainableDevelopment Working Group is composed of representativesfrom the Office of the Board of Directors, various functionaldepartments involved in sustainable development word, BGs(Business Group), and BUs (Business Unit). It is specificallyresponsible for coordinating the implementation of ESGand climate change-related work, ensuring the effectiveuploading and issuing of tasks, and reviewing the risks andopportunities related to climate change.

In order to effectively implement and perform ESG andclimate-related management work, all business and functionaldepartments of SF do a good job of ESG and climate riskidentification and carbon emission accounting in accordancewith established management indicators and mechanisms,implement climate change risk management measures inbusiness activities, and implement energy conservationand emission reduction work plans to ensure that ESG andclimate governance work is comprehensively improved.

The Board of Directors

Sustainability Leadership Group

Sustainable Development Working Group

Business and Functional Departments

Auditcommittee

Salary andassessmentcommittee

StrategyCommittee

Nominatingcommittee

Riskmanagement

committee

Periodic reporting

Daily reporting

Daily reporting

Supervision & guidance

Overall planning

Coordination inimplementation &

promotion

SF Sustainability Governance Structure

Strategy

SF comprehensively assesses short-term (0-2 years), medium-term (2-5 years) and long-term (5-10 years) climate risks andopportunities, and closely integrates risk management measures with the company’s strategic goals and action plans. Sincethe risks and opportunities brought by climate change are usually long-term, complex and uncertain, the Company appliesscenario analysis methods to evaluate the climate risks and their financial impacts under different global temperature risescenarios, including low emission and high emission scenarios, which provide scientific basis for the Company to formulateforward-looking and flexible risk management strategies.Physical RiskPhysical risks refer to the impact of changes in climatic conditions on the Company’s operation and development, includingacute physical risks (such as typhoons, floods, etc.) and chronic physical risks (such as rising average temperature). In2024, SF conducted a comprehensive risk screening based on the two Shared Socioeconomic Pathways (SSPs) in theSixth Assessment Report (AR6)

of the United Nations Intergovernmental Panel on Climate Change (IPCC)-SSP1-2.6 (low emission scenario) and SSP5-8. 5 (high emission scenario), systematically analyzed the potential impact of keyphysical risks on company operations and finance, covering temperature rise, sea level rise, changes in the frequency andintensity of extreme weather, changes in precipitation and so on, and provided data support for the resilience building ofinfrastructure and operational networks.

ScenarioType

ScenarioSelected

Scenario Source

Scenario Application

Description

Scenario Forecasting

Lowemissionscenarios

SSP1-2. 6Intergovernmental

Panel on ClimateChange (IPCC)Sixth AssessmentReport (AR6)

It has rapidly transformedfrom an economy that relieson fossil fuels to an economydriven by renewable energy,and many countries have begunto implement strong climatemitigation measures to controlglobal warming in this centuryfrom not exceeding 2.0 °C beforethe industrial revolution (1850).

? Average temperature

:

will increase by 1.9°C? Average Sea level

: will

rise 0.2m

? Extreme weather

:

frequency and intensity

will increase to some

extent

? Total precipitation

: will

increase by 1.3%Highemissionscenario

SSP5-8. 5Intergovernmental

Panel on ClimateChange (IPCC)Sixth AssessmentReport (AR6)

Due to the continued extractionof fossil fuels as the primaryenergy source to drive globaleconomic growth, greenhousegas emissions are expected to beat high levels until 2100, whichmay exacerbate the occurrenceof extreme weather events.

? Average temperature: will

increase by 2.7°C

? Average Sea level: will

rise 0.3m

? Extreme weather:

frequency and intensity

will significantly increase

? Total precipitation: will

increase by 1.6%

Under the high emission scenario, the company faces the greatest impact of physical risks, so the company conductsphysical risk analysis under this scenario:

The data from the IPCC models focus on the field of climate science and its physical impacts, enabling detailed projections of the physical

consequences of climate change. This information is particularly valuable for assessing the physical risks to the natural environment andinfrastructure under changing climatic conditions.

Source: Intergovernmental Panel on Climate Change (IPCC) Working Group (WGI) Sixth Assessment Report and CMIP6 climate models.

Refers to the change of Chinese average temperature by 2050 compared with 1850-1900.

Refers to the change of Chinese mean sea level height by 2050 compared with 1955-2014.

Refers to the changes in the frequency and intensity of extreme climate in China by 2050 compared with 1850-1900.

Refers to the change of Chinese total precipitation by 2050 compared with 1850-1900.

6766SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Type of RiskRisk FactorsPeriod of InfluenceImpact of Value ChainDegree of ImpactAcute riskTyphoon

Short term, medium term

and long term

Logistics and operationsMedium to high

Risk Analysis

In the logistics transit phase, SF has a large number of domestic and foreign self-operated and agency outlets, transit

depots, logistics industrial parks and warehouses. Extreme weather events such as typhoons may cause strong windsand heavy rains, resulting in damage to the facilities of the transit depots, such as roof damage, transit equipment failureand so on, which in turn affects the normal operation of the transit depots and increases maintenance costs and operatingcosts.In the logistics and transportation phase, SF provides customers with domestic and cross-border logistics andtransportation services through various transportation modes such as air, road and railway. A major typhoon event maycause disruption to overall logistics transportation, resulting in goods being stranded at transit depots or warehousesand not being able to reach their destinations on time, thereby increasing logistics performance risks and resulting inloss of revenue.

Countermeasures

In the process of site planning and construction, fully assess the risks of strong winds and heavy rains that may be caused

by typhoons, and avoid multi-slope pavement design on the premise of complying with local building codes to reduce thepossibility of forming inward gullies under heavy rainfall conditions.Formulate a complete emergency plan, reserve sandbags, generators, drainage pumps, helmets and other emergency

supplies at each operation site in accordance with the system requirements, and regularly check the operation of facilitiesand equipment and the reserve of emergency supplies.In the field of air transportation, SF Aviation has set up a meteorological seat in the Aviation Operation Command Centerto release weather warning and forecast information in real time, accurately assess the intensity, scope and impactperiod of severe weather, and timely transmit relevant information to operational support departments such as the unitsresponsible for dispatching and releasing goods, providing scientific meteorological support for flight decision-makingadjustment.Type of RiskRisk FactorsPeriod of InfluenceImpact of Value ChainDegree of ImpactAcute riskFlood

Short term, mediumterm and long term

Logistics and OperationsMedium to HighRisk AnalysisGlobal warming will lead to rising sea levels and total precipitation, thus increasing the risk of floods.

Long-term changes in global sea level under high

emission scenarios

Long-term changes in global total precipitation under high

emission scenariosIn areas with high incidence of flood disasters, the transit depots, warehouses and industrial parks operated by the company

may face the risk of flooding, resulting in flooding inside or surrounding areas of the warehouses, thereby causing damageto stored items. In addition, logistics infrastructure, including transportation equipment, pipeline systems and storagefacilities, may be damaged by floods, resulting in asset losses and increased maintenance costs.Flood disasters may cause damage to transportation infrastructure such as roads and bridges, resulting in interruption

of logistics and transportation routes and delay of distribution timeliness, thereby affecting transportation efficiency andreducing operating income.

Countermeasures

For transit depots, warehouses and industrial parks located in low-lying areas, a comprehensive inspection of drainage

facilities is carried out in advance, and drainage renovation projects are implemented according to local flood controlstandards to effectively deal with potential flood risks.On the basis of the news released by the China Meteorological Administration and the Ministry of Water Resources, SF’s

command and security center issued emergency plans such as theEmergency Response Plan for Flood Controland the

Abnormal Weather Response Planto the whole network through emails and other forms of communication, so as to preventthe safety risks brought by the flood season by making work arrangements in advance, including organizing activitiesfor safeguards, daily precautions (personnel safety, parcel safety, driving safety, site safety and materials reserve) andresponses during different processes.Type of RiskRisk FactorsPeriod of InfluenceImpact of Value ChainDegree of ImpactChronic risk

Averagetemperature rise

Medium to long termOperationsMedium to High

Risk Analysis

Global warming will cause an increase in average temperatures, adversely affecting SF’s operations.

Long-term changes in global average temperature under high emission scenariosThe continuous rise in temperature has a significant impact on the work efficiency of outdoor workers (such as couriers).

High temperature environments can cause employee fatigue, heat stroke or other health problems, which can reduce workproductivity. At the same time, the implementation of high temperature subsidies and working environment improvementmeasures may further increase operating costs.High temperature weather may also have an impact on cold chain logistics systems (such as cold storage and refrigeratedtransport vehicles), resulting in increased refrigerant usage, thus increasing refrigeration costs.High summer temperatures and changes in temperature differences within the area covered by the business may adverselyaffect the storage and transportation conditions of consignments, thereby increasing the risk of potential loss of revenue.

CountermeasuresBy integrating external weather forecast information, we gradually build and optimize the weather monitoring system,

release high temperature warning indicators in advance, and help staff take countermeasures in advance to reduce therisks caused by extreme high temperatures.We implement safety and health protection measures for high-temperature operations, including equipping portable fansand other cooling equipment, implementing special ventilation and cooling renovation projects, scientifically arrangingwork and rest times and so on to reduce the potential hazards of extreme high temperatures to employees’ health.Based on the national urban temperature data and routing data, an ambient temperature analysis model is established

to divide the country into different temperature zones, and differentiated temperature control materials and compositetemperature control technologies are adopted according to the characteristics of each temperature zone to form atemperature-controlled packaging based on temperature zones and flow directions. It effectively alleviates the possibleimpact of extreme temperatures on consignments.

6968SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Transition RisksTransformation risks refer to the risks faced by the Company due to changes in policies, laws, technologies andmarkets in the process of coping with climate change and transforming of the sustainable development economicmodel. Through the analysis of macro environment, industry trends and internal research data, combined with theInternational Energy Agency’s (IEA)

Stated Policies Scenario (STEP) and Net Zero by 2050 (NZE), SF focuses onassessing policy and regulatory risks, technology risks, market risks and reputational risks, identifies the impact ofenergy transition and policy changes on the company’s business model, analyzes the company’s transition risks andopportunities under different climate scenarios, and provides scientific basis for formulating low-carbon transitionstrategies.ScenarioType

SelectedScenario

ScenarioSource

Scenario ApplicationDescription

Scenario Forecasting

Highemissionscenario

StatedPoliciesScenario(STEP)

IEAThe scenario reflects

the current policyenvironment and isbased on a case-by-case assessmentof specific policiesacross sectors,as well as policiesalready announcedby governments,providing abenchmark forassessing potentialoutcomes (andlimitations) of recentdevelopments inenergy and climatepolicy

International climate policy: Some countries and

regions have not yet set clear climate goals and lackdetailed climate action plans.International business model: The profit-drivenbusiness model focuses on short-term financialreturns, ignores environmental and social impacts,and there is no significant fluctuation in the renewableenergy mix.Domestic greenhouse gas emissions: In 2030,

greenhouse gases will increase by 40% comparedwith 2020.

Domestic energy structure: The proportion of non-

fossil energy in total energy consumption is the sameas in 2020, about 16%.

Domestic carbon price: The carbon price in 2030

will be the same as that in 2024, approximatelyRMB69.67/ton-RMB106.02/ton

.

Domestic automobile structure: The proportion of

newly registered new energy vehicles in the totalnumber of newly registered vehicles is the same asin 2023, about 30.25%

Domestic logistics transportation mode: maintainingthe existing logistics transportation mode

The IEA model mainly focuses on the impact of energy system and policy changes on carbon emissions, reflects changes in energy demand,supply and carbon emissions under different policy and technology paths, and is suitable for assessing transition risks related to energytransition and policy changes.

Source: Shanghai Environment and Energy Exchange releases annual comprehensive price trends and transaction information of the nationalcarbon market.

Source: The Ministry of Public Security of the People’s Republic of China releasedThe number of motor vehicles nationwide reaches 435million, drivers reaches 523 million, and the number of new energy vehicles exceeds 20 million

ScenarioType

SelectedScenario

Scenario

Source

Scenario ApplicationDescription

Scenario Forecasting

Lowemissionscenarios

Net Zero by2050 (NZE)

IEAThis scenario is

an ideal scenariothat refers tothe successfulachievement of thegoal of net-zerocarbon dioxideemissions around2050 through strictclimate policies andinnovation, limitingglobal warming to

1.5°C

International climate policy: Major countries and

regions in the world announce their respective carbonneutrality paths, including Chinese “Carbon Peak”and “Carbon Neutrality” goals, and strictly implementthem.

International business model: Accelerate the

transition from a traditional economic model thatrelies on fossil fuels to a green economic modeldriven by renewable energy.

Domestic greenhouse gas emissions: By 2030,

China’s carbon dioxide emissions per unit of grossdomestic product (GDP) will decrease by more than65%

compared with 2005 and 18%

comparedwith 2020.

Domestic energy structure: By 2025, non-fossil

energy will account for about 20% of total energyconsumption, and by 2030, the proportion of non-fossil energy consumption will reach about 25%

.

Domestic carbon price: It is estimated that in 2030,

the carbon price will reach RMB207/ton (baseline +quota auction + total control scenario)

.

Domestic automobile structure: By 2030, the

proportion of new energy and clean energy vehicleswill reach about 40%

.

Domestic logistics transportation mode: Change from

the existing logistics transportation mode to themultimodal transportation mode with railways andwaterways as the backbone, vigorously promote theintermodal transportation of rail and water, continueto promote the transportation of bulk goods andmedium and long-distance goods “road-to-rail” and“road-to-water”, and vigorously develop high-speedrail express

.

Source:

Progress on the Implementation of China’s Nationally Determined Contributions (2022)

Source:

Opinions of the State Council of the People’s Republic of China on Fully, Accurately, and Comprehensively Implementing the NewDevelopment Philosophy to Achieve Carbon Peak and Carbon Neutrality Goals

Source:

Outline of the 14th Five-Year Plan (2021-2025) by the National Development and Reform Commission

Source: Refinitiv releases “2023 China Carbon Market Long-term Carbon Price Forecast Report”

Source: The Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Ecology

and Environment issued theImplementation Plan for Carbon Peaking in the Industrial Sector

Source: Implementation Opinions of the Ministry of Transport, the National Railway Administration, the Civil Aviation Administration of China,

and the State Post Bureau on theImplementing the Opinions of the State Council of the People’s Republic of China on Fully, Accurately, andComprehensively Implementing the New Development Philosophy to Achieve Carbon Peak and Carbon Neutrality Goals

7170SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

The policy supervision under the low emission scenario is the strictest, and the transformation risk has the greatest impacton the company. Therefore, the company has carried out the transformation risk analysis under the low emission scenario:

Type of RiskRisk FactorsPeriod of Influence

Impact of ValueChain

Degree ofImpact

Policy andregulatory risks

Greenhouse gas emissionreduction policy pressure

Short term, mediumterm and long term

Logistics, operationsand sales

Medium tohigh

Risk Analysis

Since the announcement of the “Carbon Peaking and Carbon Neutrality” goal, China has successively issued a series of

relevant policies for the fields of energy, transportation and logistics, such as thePlan for Modern Logistics Development

during the “14th Five-Year Plan” Periodand theOutline for the Development of Green Aviation Manufacturing Industry

(2023-2035), to promote the green and low-carbon transformation of the economy. These pressures from the relevant macro

policy adjustments will influence SF’s core business activities such as express transportation and warehousing services,

which may have an impact on SF’s business model, and may also lead to an increase in SF’s expenses on environmental

protection, energy conservation and emission reduction and other related activities.In terms of offshore compliance, the EU-ETS has included the air transport sector, aiming to reduce the carbon emissions

of aviation through market mechanisms. With the rapid expansion of SF Airlines freighter fleet and the increased demand

for intercontinental routes, SF Airlines may be included within the scope of carbon emission trading control in the future,

which may lead to an increase in additional operating costs.

CountermeasuresSF has a policy research team to deeply analyze national and local policies, continuously track the dynamic changes

of domestic and foreign laws and regulations, and incorporate them into the risk assessment system. At the same time,combined with changes in the internal and external environment, formulate strategic plans in advance to cope with policyadjustments.In terms of international route operations, SF continues to monitor the flight volume of EU routes and pays close attention

to the latest policy trends of the EU ETS carbon emissions trading system. The Company established a special workinggroup on carbon emissions on EU routes and formulated theGuidelines of EU Route Carbon Emissionto systematicallybuild carbon management capabilities, integrate relevant resources, cultivate professional teams, and deploy risk responsemeasures in advance.SF engages a third-party professional organization to carry out carbon emission verification every year to fully gain a

deeper understanding of its own carbon emission status, and at the same time implements refined energy-saving andcarbon reduction management measures to promote scientific and standardized emission reduction work processes.Type of RiskRisk FactorsPeriod of Influence

Impact of ValueChain

Degree of

Impact

Technical risksR&D and investment in low-carbon

transformation technologies

Short term, medium

term, long term

Logistics and

operations

Medium to

high

Risk Analysis

Driven by policy guidance and external market environment, the research, development and application of new energy

and carbon reduction technologies in the field of logistics and transportation have received increasing attention, suchas the practice of innovative technologies such as hydrogen fuel cell vehicles and sustainable aviation fuel (SAF) in thetransportation link. SF continues to increase the deployment of new energy vehicles in the field of land transportation,while continues to expand the scale of its own cargo aircraft in the field of air transportation and pilot SAF commercialflights. The application and promotion of new energy technologies in transportation scenarios requires a certain amount ofincreased investment, which may increase cost pressure in the short term.

Countermeasures

SF actively participated in domestic and foreign sustainable aviation fuel (SAF) application pilot project discussions, paidclose attention to SAF market dynamics and commercial application scenarios, and successfully achieved the first SAFcommercial flight on December 19, 2024. The domestically produced SAF refueled can achieve a reduction of 1,600kilograms of carbon emissions in the entire lifecycle scenarioBased on the technological maturity of new energy vehicles and the actual situation of energy replenishment facilities, SFselects specific areas or routes to carry out pilot operations of new energy vehicles such as liquefied natural gas (LNG),compressed natural gas (CNG), methanol and hydrogen fuel.

Climate OpportunitiesIn the process of transitioning to a low-carbon economy, SF turns challenges into development opportunities through forward-lookingclimate adaptation measures. The Company actively explores new opportunities arising from energy structure adjustment, marketdemand evolution and technological innovation, develops green products and services, enhances supply chain resilience, promotesbusiness model innovation, and injects new momentum into sustainable development.Types ofopportunities

Opportunity FactorsPeriod of Influence

Impact of Value

Chain

Degree of

Impact

Product and service

opportunities

Development and/or expansion oflow-emission products and services

Short term, mediumterm and long term

Operations and

sales

Medium to

high

Opportunity Analysis

Policy opportunities: In recent years, China has successively issued policy documents such as the14th Five-Year Plan for CircularEconomy Developmentand theInstruction on Accelerating the Construction of a Waste Recycling System, clearly proposingto comprehensively implement a circular production model and build a circular economy for various industries. The economicsystem provides strong policy support and resource guarantee. SF actively responds to policy guidance, deeply participates inthe green transformation of the industry, and seizes the strategic highland of circular economy.Market opportunities: As attention to climate issues continues to increase, the demand structure of downstream customersand consumers has accelerated its transformation to green and low-carbon services, and the demand for sustainable supplychain solutions has increased significantly. By actively upgrading its green service capabilities, SF not only enhancescustomer stickiness and market competitiveness, but also promotes the low-carbon collaborative transformation of theupstream and downstream of the industrial chain, injecting new momentum into the green development of the industry.

Countermeasures

Building a circular ecosystem: SF actively responds to the development trend of circular economy, comprehensively builds a

circular ecosystem for express packaging, collaborates with industrial chain partners to innovate the green and low-carbonrecycling model of plastics, and deeply participates in the formulation of green packaging standards for “double easy” (easyto recycle and easy to regenerate) in the express delivery industry. Through the continuous implementation of the “FengjingPlan”, SF has achieved remarkable results in the fields of packaging reduction, reuse, recycling and degradation. In 2024,SF invests approximately 6.435 million recycled woven bags and 6.26 million recycled packaging containers to stimulatecustomers’ enthusiasm for participating in recycling and helps the high-quality development of the circular economy. Digital and intelligent low-carbon solutions: SF has established cooperation with multiple brand customers, relying on the self-developed “Fenghe Platform” carbon emission calculation model to provide customers with accurate measurement services forgreenhouse gas emissions in the transportation process, improve the transparency of carbon emission data, and tailor greenand low-carbon logistics solutions for customers to promote the green transformation of the entire supply chain.Types ofOpportunities

Opportunity FactorsPeriod of Influence

Impact of Value

chain

Degree of

Impact

Resource efficiencyAdopt more efficient transportation

modes

Short term, mediumterm and long term

Logistics and

operations

Medium to

high

Opportunity Analysis

With the popularization and promotion of the concept of green logistics, multimodal transport, as an important strategy topromote the low-carbon transformation of the industry, is receiving widespread attention. China continues to promote theWorkPlan for Optimizing the Development of Multimodal Transport and Adjusting the Transport Structure (2021-2025), aiming tobuild a unified and open transportation service market, promote the deep integration of roads, railways, waterways and aviation,improve comprehensive transportation efficiency, and reduce logistics costs help achieve energy conservation and carbonreduction goals in transportation. This policy orientation provides an important opportunity for SF to expand its multimodaltransport mode.

Countermeasures

SF gives full play to the resource advantages of aviation, land transportation and delivery hubs, and actively expands themultimodal transport mode of “Road, Rail, Waterways and Air”. In the field of bulk cargo transportation, SF participates inthe national multimodal transport demonstration project and continues to optimize the transportation organization model. In2024, SF cooperated with China Railway Container Transport Xi’an Branch to successfully launch a container multimodaltransport train from Xi’an to Urumqi, innovating the “Railway + Express Delivery” integration model, significantly improvingtransportation efficiency and reducing carbon emissions. At the same time, SF actively explores the innovative logistics modeof Air-Rail intermodal transport, launches demonstration projects in Wuxi, Shenzhen and other places, and jointly promotesthe deep integration of rail transit and modern logistics with partners. By efficiently utilizing urban rail transit transportationresources, it not only alleviates road traffic pressure, but also provides an innovative practice model for the green and low-carbon transformation of the logistics industry.

7372SF Holding 2024 Sustainability ReportAbout SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Risk ManagementSF deeply integrates climate change risks into the enterprise risk management framework, ensuring that climate-relatedrisks are effectively identified, managed and disclosed. The Company regularly organizes discussions and analyseson issues related to climate change, continuously supervises and follows up on the handling of climate-related risks,continuously optimizes the risk management and control mechanism and management capabilities in daily work, andimproves the Company’s ability to cope with climate risks.

Risk environmentanalysis

SF continues to pay attention to and analyse changes in the internal and externalenvironment brought about by climate-related risks, including pressures exerted by externalpolicies, market trends, SF’s risk tolerance, and business operation models. If environmentalchanges have a significant impact on risk management strategies or measures, SF’s riskmanagement and control department will make timely adjustments to the risk controlstrategy planning.

Goal setting and riskidentification of risk

control

Based on SF’s goals of risk control, it conducts in-depth research and analysis on theinternal and external conditions and key matters affecting the realization of the objectives,covering multiple aspects such as internal management, external economic environment,natural environment and laws, regulations and policies. In this case, we can identify andsort out the list of risks related to climate change.

Risk assessment

SF adopts a combination of quantitative and qualitative methods to conduct climate risk analysisand assessment. Based on the probability of risk occurrence and the degree of impact on SF’sobjectives, the identified risks are prioritized and the risks that are confirmed to be given theextensive focus and the priority to control. As a result, the risks can provide information for thereference of formulation and adjustment of SF’s development strategy.

Risk responses

Taking into account the causes and tolerance of risks, SF weighs risks and benefits, brandreputation, social responsibility and other factors, and based on the results of risk analysis,the Board of Directors will review and determine appropriate and effective risk response plansto ensure SF’s stable development.

Supervision and

improvement

SF continues to follow up, monitor and manage the handling of climate-related risks. In dailywork, SF improves its ability to cope with climate risks by continuously optimizing its risk controlmechanism and management capabilities.

Metrics and Targets

As the largest comprehensive logistics service provider in China and Asia and the fourth largest in the world, SF has alwaysadhered to the concept of sustainable and healthy development, deeply realized the importance of participating in global climateaction, actively responded to global carbon reduction initiatives, and implemented the national “Carbon Peak and CarbonNeutrality” strategy to contribute to the realization of the long-term goals of the Paris Agreement. Based on past carbon reductionachievements, SF released the industry’s firstCarbon Target White Paper, promising to increase its own carbon efficiency by 55%in 2030 compared with 2021, and reduce the carbon footprint of each parcel by 70% compared with 2021. In November 2023, SFofficially signed and submitted theBusiness Ambition for 1.5°C Commitment Letterto the “Science-Based Carbon Target Initiative”(SBTi), demonstrating the company’s commitment to achieving science-based greenhouse gas emission reduction targets andstriving to achieve net-zero emissions in the value chain by 2050.Carbon efficiency will be improved by

% in 2030 compared to 2021

Carbon footprint of each parcelwill be reduced by

% in 2030

compared to 2021Long-term goals

IndicatorsProgress on Climate ActionFuture Planning/Goal Setting

Scope 1

andscope 2

Clean energy

? As of the end of 2024, SF has a total of35 industrial park photovoltaic projects inoperation and construction, with a totalinstalled capacity of 145 MW.? In 2024, the construction of rooftopphotovoltaic power stations in 24 industrialparks has been completed, with an overallinstalled capacity of more than 111 MW.The annual renewable energy powergeneration exceeds 70 million kWh, andclean energy usage exceeds 42 millionkWh.

SF plans to continue the construction of 15-18 industrial park photovoltaic projects in2025, with an estimated installed capacityof 50 MW.By the end of 2025, all photovoltaicprojects are expected to be completed andoperational. By then, the total installedcapacity of photovoltaic equipment in theindustrial park is expected to reach 170MW, with an annual power generation ofapproximately 140 million kWh, achievinga stable supply of green electricity.

Scope 3

Greentransportation

? In 2024, SF actively adjusted the

structure of transport vehicles, continueto optimize the selection and replacementof traditional fuel vehicles, and furtherexpand the proportion of new energyfleets. As of the end of 2024, SF hasdeployed more than 40,000 new energyvehicles, covering 253 cities.

In 2025, SF will continue to combine thematurity of factors such as new energyvehicle battery technology and energyreplenishment conditions, and continue topromote the pilot and application of LNG,CNG, methanol, hydrogen and other fuelvehicles in some regions or lines.By 2030, SF will strive to achieve 100%electrification rate of vehicle equipment inaviation bases.

Greenpackaging

? In 2024, through green packaging

measures such as packaging reduction,recycling, and degradation, carbonemissions are reduced by approximately664,000 tons, the use of packagingbase paper are reduced by 42,000 tons,and the use of plastics are reduced byapproximately 155,000 tons.

By 2030, we will strive to switch 100% ofstandard plastic bags to recycled plasticbags.

Social

Construction of Talent Team Protecting Employees’ Rights and Interests Stand Firm on the Frontline of Safety Stable and Safe Production Building a Responsibility Value Chain Sustaining Commitments to Social Wellbeing

SF has always followed the philosophy of “Co-benet and Coexistence,”with the overarching goal of creating a “Responsible LogisticsEcosystem.” We are committed to fostering a win-win sustainabledevelopment ecosystem through our business activities. Toward ourclients, we continuously enhance service scenarios and responseefciency while meeting diverse needs through intelligent solutions andcustomized services, driving value enhancement. For our employees, wefollow the concept of “people-oriented care,” protect their rights andinterests in line with the law, broaden career development pathways,and foster an equal and inclusive workplace environment to supportthe mutual growth of employees and the company. For our partners,we deepen strategic collaboration, share resources and technologicalcapabilities, and promote green and low-carbon cooperation to drivethe high-quality development of the value chain. Toward the public,we actively fulll our social responsibilities by participating in livelihoodprojects such as rural revitalization and emergency supply guarantee. Weshare the achievements of our corporate development with society andpromote the deep integration of economic and social values. SF alwaystakes “responsibility” as the bond and works with all parties to contributeto building a better society.

Fostering a Responsible Logistics Ecosystemthrough Mutual Benet and Symbiosis

SF Holding 2024 Sustainability Report

About SFSustainability ManagementGovernanceEnvironmentAppendicesSocialServices

Construction of Talent Team

SF has always regarded talent as the core driving force of corporate development and placed great emphasis on buildinga talent team. We are committed to developing a professional and high-caliber talent echelon through scientific talentrecruitment, training, and incentive mechanisms. In 2024, guided by the principle of “specialized personnel, focused onspecific industries,” we concentrated on cultivating compound talents with industry insights and professional skills toprovide customers with more precise and efficient logistics solutions. We also continued to optimize our managementmodel by shifting the management focus forward and closer to the front line of business. This allowed us to strengthenour incentive mechanisms and fully activate operations. By establishing a comprehensive training system and diversifiedcareer development pathways, we supported the growth of our employees and laid a solid foundation for the company’ssustainable development.

Talent RecruitmentSF strictly abides by theLabor Law of the People’s Republic of Chinaand theLabor Contract Law of the People’s Republicof China, as well as other relevant laws and regulations. The company has established theSF Recruitment ManagementSystemto regulate the entire recruitment process. It strictly adheres to the principles of fair, just, and open recruitment, andimplements measures such as quarterly compliance reviews of recruitment activities, interviewer training, and qualificationcertification for interviewers to ensure the standardization and transparency of talent recruitment.The company has established a diversified talent acquisition network by integrating multiple channels, including campusrecruitment, social recruitment, school-enterprise cooperation, internal referral, and others, to precisely align with businessdevelopment needs. In the area of recruitment channel development, the company continues to optimize the functions ofits own recruitment platform, deepen collaboration with leading recruitment platforms, and innovatively leverage new mediaplatforms such as WeChat mini-programs and Douyin for targeted communication. These initiatives collectively drive dualimprovements in talent reach efficiency and employer brand influence.In 2024, the company prioritizes the recruitment of specialized talents for industry solutions, enhancing its strategic talentpool through a standardized recruitment process and an end-to-end management system. In response to its internationalbusiness expansion, the company specifically targeted the introduction of bilingual/multilingual talents with cross-borderbusiness capabilities to provide robust support for overseas market development.In 2024, SF receives several employer branding awards, including:

LinkedInGlobal Attractive

Employers forGraduates 2024

SEMA

Best Employer

Brand Award2024

SHL

Elite Talent Award inthe 2024 China TalentManagement Awards

58. com

2024 China’s NewGeneration Employers ofthe Year (Top 100)

Intern Monk

2024 FavoriteEmployer Award

Joint Cultivation of Innovative Talent Model

① SF Supply Chain Management Industry College: As of the end of the reporting period, it has reached 18

universities, including Taizhou Institute of Science and Technology Vocational and Technical College and ShenzhenTechnology University, etc.

② International Talent Pre-identification: Special talent pipelines have been established with universities such as

the Massachusetts Institute of Technology, Beijing Foreign Studies University, and Sichuan International StudiesUniversity to accurately meet the demand for global talent.

③ Construction of Smart Logistics Internship Bases: Jointly constructed internship bases with over 100 universities,

including Southwest Jiaotong University, Shenzhen University, and Henan University, hosting over 5,000 interns in2024.Co-Construction of Intelligent Logistics LaboratoryFocusing on core areas such as intelligent logistics, and sustainable urbandevelopment (low-carbon logistics, urban safety), we have jointly built a practicebase that integrates teaching and training, project practice, and scientificresearch. We have already carried out in-depth cooperation with ZhejiangUniversity.

Transformation of Scientific Research Results

Setting up post-doctoral workstations and conducting joint doctoral training with Zhejiang University; focusing on theresearch and implementation of intelligent planning and scheduling models, large language models, and multimodalmodels in logistics and supply chain.

School-Enterprise Cooperation

The company highly values the development of a campus talent ecosystem. By leveraging multi-dimensional cooperationsuch as industry-university-research collaboration, joint talent cultivation, and the transformation of scientific researchand innovation achievements, it realizes the organic integration of the education chain, talent chain, industrial chain, andinnovation chain. This, in turn, effectively supports the company’s sustainable innovation and development.

Collaborating with ShenzhenTechnology University to Establish

an Intelligent Logistics Industry-Education Integration Training Base

Talent Training and Career DevelopmentSF places great emphasis on the career development of its employees, and has established clear and diversified careerdevelopment pathways for all employees, providing broad career development opportunities. The company fully supportsemployees in achieving their personal career goals. SF has built a scientific and systematic talent development system.Through customized training programs and capability enhancement plans, the company comprehensively strengthensemployees’ professional qualities and overall capabilities. This not only empowers employees’ growth but also injects acontinuous stream of talent into the company’s sustainable development.Talent TrainingSF embraces the philosophy that “talent is the primary productive force” and has established a comprehensive talentdevelopment system that covers grassroots employees, middle-management cadres, professional technical teams, and seniormanagement personnel.

SF Talent Training Framework

Grassroots Employees

For employee groups such as dispatch collectors, warehouse managers, customer service representatives,and sales personnel, we focus on developing their service awareness, safety consciousness, andcommunication skills. In addition to enhancing their performance, we emphasize their sustainabledevelopment and support grassroots employees in obtaining higher academic qualifications and professionalcertifications.

Middle Management

Cadres

Training of Campus-Recruited University Graduates: We continuously implement the New Eagle Internship

Program, the Premium Talent Program, the Group’s Unified Recruitment and Training Project, andManagement Trainee Program to provide unified talent development and management for universitygraduates recruited through campus channels. We adhere to three core principles: “boldly employing newtalents, talent mobility, and self-growth.” Through rotational assignments, systematic curriculum learning,and dual-mentor guidance, we identify high-potential university graduates and provide them with rapiddevelopment mechanisms. This approach promotes their growth into core talents in professional roles orkey management positions.

Training of Grassroots Managers (e.g., Outlet Leaders): Based on the knowledge and skills required foroperational scenarios, we continuously iterate our training standards and implement online training activities.We also conduct region-specific and group-oriented programs such as the “Offline Special Training Camp forOutlet Leaders” and “Live Broadcasts of Demand Scenarios.” By integrating online and offline approaches,we provide grassroots managers with a broader range of effective training resources.

Training of Middle-Level Managers (e.g., Heads of Regional Functional Departments): Taking businessscenarios as the starting point, we establish key scenario-based training standards and comprehensivetraining content. We conduct hierarchical training from reserve to on-the-job, iterating the “Fengyun Plan– Training Program for Reserve Functional Department Heads.” Focusing on core competencies such assituational leadership, practical job training, and scenario-based task simulation, we aim to enhance thequality of our reserve teams and achieve a sustainable and high-quality talent supply.

Professional Technical

Teams

Professional Ability Enhancement Project: Develop professional talent development pathways, refine

qualification standards and learning maps for various positions, provide high-quality learning resources,and guide the development of professional talents.Professional Capability Development Programs: Continuously conduct activities such as expert forums andprofessional lectures, and offer curated courses on general workplace skills and specialized capabilities tohelp employees enhance and refine their professional competencies.

Senior Management

Personnel

Cultivation of Senior Management Executives: Focused on “industry transformation and business activation,”we employ a diversified approach, including exchanges with industry leaders, benchmarking visits to topenterprises, cross-industry exchanges, and in-depth study of best practices. This helps executives gaindeep insights into key industries, rapidly replicate successful experiences, and reinforce the philosophyof lean management, thereby facilitating the comprehensive implementation of the company’s strategictransformation.Cultivation of Senior Functional Managers: Aligned with the company’s strategic orientation and businessneeds, we enhance the capabilities of senior functional managers to “link operations, broaden horizons, anddrive change.” Through customized learning programs and industry exchanges, we improve the effectivenessof their business support. Additionally, we provide high-potential executives with differentiated learningresources and practical experience opportunities to further their development.

Cultivation of High-Level Successor Talents: Centered on the transformation and upgrading of thinkingpatterns, comprehensive leadership development, and the deep integration of strategy and business, weoffer a range of development opportunities. These include diversified job assignments, multi-dimensionaltasks, and systematic learning content. This approach effectively enhances the competencies of successorcadres for target positions, ensuring a continuous supply of outstanding talents for the company.

Senior Management Industry Visit Site

Focusing on the talent development system, the Company provides a wide range of training courses and specializedlearning resources for all employees, including part-time and contractors, to meet their needs for career development andcapability enhancement. Meanwhile, leveraging the “Fengsheng” platform, the Company has developed a one-stop employeedevelopment micro-application. Centered around four key modules – “Current Role Development,” “Company Training,”“Development Planning,” and “Development Opportunities” – the application precisely matches career pathways with skillenhancement resources, thereby empowering employee growth.Grassroots Manager Development Program: Xin Feng PlanThe “Xinfeng Plan” focuses on leadership development for grassroots managers, continuously refines job-specific trainingstandards based on role functions and business scenarios, and leverages the “Jizhi Feng Course” initiative to develop high-quality curriculum resources. This ensures that grassroots managers have access to training resources that better meetpractical needs. In 2024, the program will conduct “Offline Special Training Camps for Responsible Persons” in multipleregions and target groups nationwide to enhance their business execution capabilities.

SF’s 24th “Fengyun Plan” training site (Hangzhou site)

Curriculum and Lecturer Ecosystem Development

Curriculum Ecosystem Development: The Company hasestablished a tiered and categorized curriculum managementsystem, continuously refined the operation mechanism of the“Ji Zhi Feng Course” initiative, increased the number of Group-certified courses, and enhanced the course satisfaction rate fordemand scenarios. Additionally, the Company has rolled outpersonalized learning resource libraries tailored to differentprofessional teams. In 2024, a total of 194 high-quality courseswere launched, covering topics such as business planning,business development, and leadership enhancement.

In 2024, over

7,000

new online training courseswere added, of which

courses were certiedby the organization and

courses were certied bythe Group.

Senior Management Development Program: BeaconTraining Camp

The “Beacon Training Camp” is designed to enhance thecomprehensive leadership capabilities of business arealeaders. Through industry visits, strategic war-gamingexercises, and other forms of experiential learning, theprogram continuously improves the business acumen andstrategic execution skills of these leaders. This drivessustainable growth in regional operating performance andensures that the company maintains a competitive edgein a highly competitive environment. In 2024, one trainingsession was held under the theme of “deepening industryfocus and improving operational efficiency.”

Middle Management Development Program: FengyunPlan

The “Fengyun Plan” is a leadership development programdesigned for reserve functional department leaders. It adoptsa “online cognitive foundation + offline practical deepening”model, systematically enhancing the comprehensivemanagement capabilities of the reserve talent pool throughnew leader experience sharing, business case studies, andfeedback from business area leaders. This approach ensuresa sustainable and high-quality pipeline of talent for functionalleadership positions. In 2024, a total of 5 offline trainingsessions were held, covering 236 reserve talents.

Number of peopleparticipate in theturnaround camp ofnew outlet leaders

Number of peopleparticipate in the salesability improvement campfor on-the-job outlet leaders

Number of people participatein the comprehensive abilityimprovement camp of the personin charge of the reserve area

Number of participantinstances in the cross-districtexchange activities for on-the-job area managers

“SF Sends You to College” 2024 Freshman Opening Ceremony

In 2024, a total of

18,210instructorswere added to the database,an increase of2,979

compared with 2023. Thelecturer activity rate reached

%, up by

percentagepoints from 2023.

Lecturer Team Development: SF places a high emphasis on the inheritanceand accumulation of knowledge, skills, and culture, with internal lecturersserving as key drivers of this process. The Company certifies lecturersbased on their curriculum development and teaching abilities, implementinga unified, tiered management system that includes five levels: Lecturer,Intermediate Lecturer, Senior Lecturer, Expert, and Professor. Each levelof lecturer is assigned basic teaching or curriculum development tasksannually, and corresponding teaching and curriculum development allowancesare provided in accordance with theSF Lecturer Management System. In2024, the Company stimulated lecturer potential through various initiatives,including the “Ji Zhi Feng Course” creation activities, Authorized LecturerCertification (Star Plan), lecturer empowerment programs, and honor selectionand showcase events. These efforts attracted business leaders with richpractical experience, enhancing the reserve and overall quality of lecturersand building a professional and dynamic lecturer team.

Support for Degree Programs and Professional Skills CertificationsSF encourages all employees (including part-time andcontractors) to pursue degree programs and obtain skillscertifications, offering support like expense reimbursement tofoster their self-development.

“SF Sends You to University” Program

Through the “SF Send You to College” program, the Companyhas established a growth platform for employees to enhancetheir academic qualifications, skills, and overall quality. Thisinitiative supports employees in improving their academiccredentials and professional capabilities, thereby broadeningtheir career development pathways. In 2024, the Companyrevised the“SF Sends You to College” Project ManagementMeasuresto standardize the subsidy policies for academic andskills enhancement. Financial support is provided to all eligibleemployees, including part-time workers and contractors, who meetthe application criteria.

Vocational Skills Certification

The Company has established a diversified outbound learning mechanism to encourage employees to obtain professionalqualification certifications related to their jobs, participate in advanced certificate training, and engage in short-termoutbound programs (such as academic forums, industry seminars, and external open courses). In 2024, the Companywill continue to provide outbound learning support for employees, and in conjunction with the development of the jobqualification system, will increase support for advanced certificate training and short-term outbound programs. This effortaims to enhance employees’ professional capabilities and industry competitiveness on an ongoing basis.

2024

2024

2,309Number of employees who completed the “SFSends You to College” program and obtainedacademic certificates or credentials

15,000Participation count of theworkforce holding theVocational Skill Certification

More than RMB

2.89 million

Cumulative subsidies granted toemployees under the “SF Sends You toCollege” program

2,282

Number of employees whohave received education andskills upgrading subsidies

RMB5.76 million

Total subsidy for academicqualifications and skills

In August 2024, under the guidance of theNational Defence, Posts and TelecommunicationsUnion of the All-China Federation of TradeUnions, the Guangzhou Federation of TradeUnions, and the Yuexiu District Federation ofTrade Unions, the SF Group Trade Union andthe Group’s Operations jointly hosted the third“SF Cup” National Job Skills Competition, whichwas successfully concluded in Guangzhou.This year’s competition consisted of a nationalqualifying competition, regional semi-finals,and national finals. It featured four core jobtracks: collection and delivery, transshipment,warehouse management, and driver, attracting theparticipation of 540,000 employees nationwide.In the national finals, 62 individual and teamhonors were awarded through theoreticalassessment and scenario-based practicalcompetitions such as intelligent sorting, precise loading and unloading, and safe driving. The competitionsimultaneously introduced the innovative model of “skills exhibition + industry empowerment.” The livebroadcast of the practical sessions attracted over 600,000 viewers, showcasing the professionalism oflogistics practitioners to society and providing a demonstration sample for the upgrade of industry skillstandards.

‘SF Cup’ National Job Skills Competition

The 3rd “SF Cup” Job Skills Competition Finals Site

Career DevelopmentSF has set up a “dual-channel” career development system, which provides employees with diversified development pathssuch as vertical grade promotion, horizontal transfer, and rotation, and offers full-cycle support.

Through theTalent Management System, we clarify the promotion principles and standards, emphasize the matchingof people and jobs and value contributions, provide training guidance, resource support, and feedback and incentivesfor employees, and create an open and transparent promotion environment.

Establish an open and transparent internal competition and evaluation mechanism to ensure fair and accessiblepromotion opportunities, and simultaneously improve the complaint acceptance mechanism to supervise and correctirregularities and safeguard the health of the talent ecosystem.

Employees with outstanding performance and remarkable contributions are given priority in development opportunities,matched with dedicated learning resources and incentive policies to achieve a win-win situation for personal growthand corporate development.

Systematic support

Fairness mechanism

Value-oriented

Management DevelopmentChannel

By leading and managing the team, we can enhance our management and professionalcapabilities, secure management promotions, and thereby achieve self-development.Professional DevelopmentChannel

Continuous in-depth development in the professional field and the pursuit of professionalskills. The company regularly assesses the professional qualifications of its specialists andassigns professional levels to employees through scientific and objective assessment criteria.

SF Career Development Dual Channel

Talent Succession PlanningThe Company places a high priority on talent reserves for key positions and is committed to developing a systematic andforward-looking talent pipeline. In 2024, the Company established a comprehensive and in-depth succession planningprogram for successors of senior management and regional leaders. By integrating scientific selection, customized training,and hands-on experience, the program ensures that key positions are adequately staffed with capable individuals, therebyproviding a robust talent foundation for the Company’s long-term and stable development.For the successors of senior management, the Company adheres to the principle of “selecting the best among the best,”establishing an internal talent pool and designing customized development programs focused on strategic leadership.Through a blend of training and practical experience – such as executive experience-sharing sessions, leadershipenhancement workshops, and visits to industry-leading companies – a total of 24 successors were successfully promotedthroughout the year. This initiative has injected fresh blood into the Company’s strategic decision-making layer.For the successors of regional leaders, the Company conducted an in-depth analysis of job responsibilities and keyscenarios, establishing an integrated mechanism of “selection, development, and experiential learning.” By combining internalcompetitions and external recruitment, the Company further expanded its talent pool. Additionally, the Company set upchallenging rotational assignments, supplemented by multi-dimensional assessment methods such as mentorship, phasedevaluations, and stakeholder interviews, to ensure a high match between successors’ capabilities and job requirements.In 2024, the Company recruited a total of 22 candidates for business area leadership roles, of whom 16 successors havesuccessfully entered the job rotation phase, thereby reserving high-quality talent for key positions.

Career Breadth

Career Depth

Entry-level Employee/Assistant

Specialist PositionJunior Management

Position

Senior Specialist

PositionMiddle ManagementPosition

Expert PositionSenior Management

Position

Management Track(ManagementSequence)

Professional Track(Technical/Professional

Sequence)

The master, positioned in the middle,accompanied by his apprentice

The master imparts valuable experience to his colleagues

Career continuation: Outstanding employees who have reached the statutory retirement age and meet the physical

condition standards are eligible for rehire in their original positions or in special roles such as inspectors, thereby extendingtheir career value cycle.

Twin Sisters Returned from Honorary RetirementRetirement and rehiring of courtiers

Development of Pre-Retirement Employees

SF pays attention to the development of pre-retirement employees, formulates theManagement Measures forPre-Retirement Development and Re-hiring, and creates an innovative dual-track mechanism of “experience inheritance+ career continuation.”Experience inheritance: Create a full-time mentor position in the collection and dispatch role to provide a career transitionpath for older senior couriers.

The number of people who became full-time mentors in the collection and delivery positions after starting

as junior couriers in 2024

Number of Retired Employees Rejoining as of December 31, 2024

SpecialTopicSF always believes that every employee has unlimited potential. Based on strategic orientation and businessdevelopment needs, the company has established diversified internal talent development programs to provideemployees with transfer opportunities and resource support, fully activate their potential, and help them achievediversified career development.

Supporting employees’ multi-faceted development andliving a vibrant life with a thousand facets

From Grassroots Employee to Cargo Captain

Since 2007, SF has supported nearly 120 employees achieve careertransitions to professional positions in the aviation field, includingpilots, flight dispatchers, and aircraft maintenance technicians. Many ofthese individuals have emerged as outstanding talents from front-linegrassroots positions.Wang Qinjin, a line captain at SF Airline, joined the company as awarehouse operator in 2009, responsible for managing the ingress andegress of express shipments. In 2010, he successfully transitioned toa pilot role through the company’s aviation talent selection program,“Fengyi Action”, and passed the captaincy assessment in 2018,completing a remarkable transformation from warehouse operator toline captain. By 2024, he had accumulated over 630 hours of safeflight time.

From Grassroots Employee to Area LeaderZeng Yiming, the Area Manager of SF Express, joined the companyas a warehouse operator in 2011. In 2017, he participated in the“Dream Realization Plan” under the company’s employee welfarepolicy “SF sends you to college,” and pursued further studies inlogistics management at Nankai University, systematically enhancinghis professional knowledge. Meanwhile, he fully leveraged thefunctional training and practical opportunities provided by theCompany to comprehensively improve his capabilities in teammanagement, policy implementation, product design, and businessintegration. In 2024, he was promoted to Area Manager due to hisoutstanding performance and accumulated experience.In 2024, over 23,000 SF employees embarked on the path of diversified development, advancing to 32 key positionsor fields, in pursuit of their career dreams and a multifaceted life.

Number ofemployees whohave transitioned

from generalroles to aviation

professional

positions

Evolved from a regular employee to a co-pilotTransitioned from a regular employee to a

flight cadet

Performance Management and Compensation IncentiveSF consistently recognizes and values the contributions of its employees and is committed to developing a robust, science-based performance management and compensation incentive framework. This framework is designed to objectively andcomprehensively assess employees’ value creation, thereby enhancing the vitality and stability of the talent pool whiledriving the collective growth of employees and the company.Performance ManagementSF adheres to the “Three Highs” performance management principles of “high-quality talent, high-value output, andhigh-reward incentives,” fostering a performance management culture that ensures alignment between managementand employees on common goals and drives effective execution through performance assessments. This ensures thatorganizational performance goals, management commitments, and individual employee commitments are cascadedeffectively and aligned, collectively supporting the achievement of organizational objectives. The Company implementsa closed-loop performance management process through four key steps: performance planning, performance coaching,performance evaluation, and performance application. It also encourages employees to create diverse value, effectivelydriving alignment and progress between employees and the Company. Additionally, SF strictly enforces employee conductstandards, incorporating compliance behavior in daily work into the performance assessment system. Employees whoviolate the Company’s code of conduct will be dealt with seriously in accordance with relevant regulations.In 2024, under the guidance of “activating operations”, the company upgraded and optimized the performance managementsystem:

Increase the authorization of frontline sales teams, simultaneously establish a customer delivery evaluationmechanism, and stimulate business vitality.Iterate the performance evaluation plan of the heads of departments and offices of the headquarters, promote thetransformation of the Group’s headquarters to business service positioning, and strengthen service awareness.

Transformation of the headquarters

Front-end authorization

Number ofemployees whohave transitioned

from first-andsecond-line rolesto professionals

11,556Number ofcouriers who have

transitioned tomanagement at alllevelsFrom a courier to a team leader in operations

Grew from front-line and second-line

roles to a port manager

Transitioned from front-line and second-line staff

to a senior operations management specialist

Promotion of the “First Asking”Additionally, the Company has established a performance feedbackmechanism to ensure the fairness and transparency of the performanceevaluation process. This mechanism assists employees in identifying areasfor improvement and potential growth, while supporting the development ofpersonalized development plans. To enhance the quality of performancefeedback sessions, the Company utilizes online tools to monitor theexecution rate of managers’ feedback sessions and the agreement rateof improvement plans for underperforming employees. Furthermore, theCompany provides a performance management knowledge map to empowermanagers with enhanced performance coaching capabilities, therebyfacilitating continuous employee growth.Compensation IncentivesSF adheres to the compensation philosophy of “high performance, high reward,” and has established a compensationsystem that is based on job value and performance-oriented, emphasizing the alignment of rewards with value output. TheCompany develops differentiated compensation strategies according to various job types and talent strategies, offeringemployees a comprehensive compensation package that is both internally equitable and externally competitive.The Company has established a strong performance-based incentive pay structure for all employees, conducting monthly,quarterly, and annual performance appraisals for employees across different job categories and levels. The appraisalresults serve as a critical basis for determining employee compensation, promotions, bonuses, and other related matters,thereby encouraging employees to grow alongside the Company. For employees who make high-value contributions, theCompany offers a market-competitive compensation and reward system. Through differentiated and diversified long-termand short-term incentive mechanisms, the Company attracts and retains core talents, ensuring that the interests of keypersonnel are closely aligned with those of the shareholders and the Company. This approach provides a strong impetusfor the Company’s long-term sustainable development.To ensure the fairness and transparency of the compensation system, the Company has established robust compensationcommunication channels, combining online compensation inquiry tools with offline face-to-face discussions to helpemployees clearly understand their compensation structure. At the same time, the Company regularly reviews itscompensation incentive mechanisms, analyzing market competitiveness and internal equity to ensure that compensationlevels are fair, reasonable, and attractive. This approach continuously enhances employee satisfaction and sense ofbelonging. Furthermore, to attract and retain core talents, the Company has introduced an equity incentive plan. Throughlong-term incentive mechanisms, this plan aims to boost the enthusiasm and creativity of the core team, thereby providinga solid talent foundation for the Company’s sustainable development.

In 2024, the proportion of employeesreceiving regular performance evaluationsreached

%.

First Asking Responsibility System

In order to lead functional employees to better implementthe concept of first question service,SF has integratedthe first-inquiry responsibility system into its employee multi-dimensional evaluation system, thereby achieving a moreobjective and comprehensive assessment of individual valuecontributions.

Employee Multi-Dimensional Evaluation SystemTo effectively guide the direction of employee value creation,in 2024, SF adjusted its employee multidimensional evaluationsystem. The new system is built on the foundation of culturalvalues, with core value creation assessed through the Value PointWorking Group, Chassis Working Group, Operations WorkingGroup, and Group Project Deliverables. It is supported by four keypillars: overcoming challenges, talent development, knowledgesharing, and service support. This framework firmly clarifies thedirection of employee value creation, objectively and effectivelymeasures employee contributions, and identifies and motivatesoutstanding talents.

“SF Employee Multi-Dimensional Evaluation System”

Protecting Employees’ Rights and Interests

SF always puts the protection of employees’ rights and interests in the first place, is committed to providing employeeswith a diverse, inclusive and equal working environment, continuously pays attention to employees’ life and health,creates a humanistic and caring working atmosphere, and effectively enhances employees’ sense of belonging andhappiness.

Employees’ rights and interests

SF strictly abides by the provisions of the United Nations International Charter on Human Rights, the International LabourOrganization’sDeclaration on Fundamental Principles and Rights at Workand the core conventions of the InternationalLabour Organization, and followsthe Ten Principles of the United Nations Global Compact (UNGC)to incorporatehuman rights protection into the entire process of business operations. Through the formulation of theDeclaration onthe Protection of Employees’ Rights and Interests, the Company systematically implement the requirements of eightinternational conventions, includingthe Convention on Equal Remuneration for Equal Work, the Convention on MinimumAge for Employment, the Convention on Prohibition of Child Labor, the Convention on Discrimination in Employmentand Occupation, the Convention on Forced Labor, the Convention on Abolition of Forced Labor, and the Convention onOccupational Safety and Health, and establish a human rights protection mechanism covering the whole employment cycle.In order to ensure the compliance of human rights protection, the Company continues to strengthen the monitoring anddue diligence of human rights risks in its operation sites to protect the rights and interests of all stakeholders within itsbusiness scope. In 2024, the Company did not identify major human rights compliance risk events.

Provide safety and health protection: resolutely implement the safety production management policy of “safetyfirst, prevention first, legal compliance, all employees perform their duties, continuous improvement and healthydevelopment”;Prohibit the use of child labour and forced labour: strictly abide by the applicable laws and regulations of thecountries or regions where the business operates and invests, and prohibit the use of child labour and any formof forced labour;Respect for freedom of association: Respect the freedom of association of employees protected by law. Employeeshave the right to form and join legally recognized trade unions, including participating in trade union activities,workers’ congresses, etc.;Anti-discrimination, equal opportunity and diversity: No discrimination on the basis of race, color, ethnicity, sex,sexual orientation, religion, age, ancestry, marital status, physical condition or any other form will be tolerated;Anti-harassment and violence: harassment, violence or threat of violence of any level will not be tolerated or ignored;Training and development: By establishing a scientific and comprehensive talent training system, the Companyenhances employees’ professional quality and comprehensive capabilities, provides employees with clear careerdevelopment paths, and helps employees achieve long-term career development.The above commitments apply to all directors, officers and all workforce of S.F. Holding Co., Ltd. and its subsidiaries.

SF’s Statement on the Declaration on the Protection of Employees’ Rights and Interests

Prohibition of Child and Forced LabourSF strictly prohibits the use of child labour and any form of forced labour. During the recruitment stage, the Company’sSF requires all applicants to register their personal information online, automatically identify the age of their ID cardsthrough the system, and prohibits people under 18 years old from interviewing; In the onboarding stage, face recognitionauthentication is adopted to ensure the integration of people and witnesses. At the same time, third-party partners arerequired to submit documents to prove that their labor management complies with SF standards, and to eliminate humanrights violations such as child labor and forced labor.Working Hours and Welfare Protection

SF clearly stipulates working hours inthe Employee Handbook, Attendance Management RegulationsandLabor Contract,and formulatesFlexible Working Systemto provide convenience for employees with special needs. During holidays andbusiness peak periods, by hiring flexible employees, the number of employees in some temporary and auxiliary jobs issupplemented, the work intensity of on-the-job employees is reduced, and the rest time of employees is guaranteed. Allemployees enjoy the same rights and interests, and adopt the same standards in employee management and protectionof rights and interests. Temporary employees sign contracts or agreements according to law to obtain labor remunerationand employer liability insurance (including accident) or work-related injury insurance.In case of major restructuring or change, the Company would explain the situation to the labor union or all employees30 days in advance, and properly handle the termination or termination of the labor contract after fully listening to theopinions to ensure that the rights and interests of employees are fully protected. During the year, The company has notexperienced any major layoffs.Diversity, Inclusion and EqualitySF fully respects cultural differences in different regions, strictly prohibits any form of discrimination, and is committed tocreating a diverse, equal and inclusive workplace environment for employees around the world. The Company adheresto the principle of equality in employee recruitment, promotion and development and salary management, does notdiscriminate against employees due to gender, region, ethnicity, religious belief, economic ability and other factors, andactively carries out diversified recruitment to provide employment support for vulnerable groups.

Diversified recruitment: In 2024, female SF employees accounted for 15.1%; Minority employees account for 5.8%. Inaddition, SF’s overseas branches (subsidiaries) are also actively hiring local personnel from operating places. As of theend of the reporting period, there were 2,580 foreign employees on the job, an increase of 2.8% compared with 2023.

Recruitment of vulnerable groups: On the premise of meeting job requirements, SF actively provides employmentopportunities for vulnerable groups in society, matches positions with low physical strength (such as customer service,management, warehouse management, professional, etc.), and promotes employment of vulnerable groups. As at the endof the Reporting Period, there were more than 1,500 people with disabilities on the job at SF.

RecruitmentEmployee promotionRemuneration managementUnder the principles of fairness and equality,the Company have formulated a transparentrecruitment process that is clearly and formallycommunicated to all candidates. The Company willnever restrict recruitment or employment based ongender, geographical region, ethnicity, religiousbelief, or financial situation.

The Company select andpromote talents through openand transparent internalcompetitions or appraisals,providing equal promotionopportunities for all employees.

The Company implement a fair,just, and transparent remunerationmanagement system, and adhere tothe principles of gender equality andequal pay for equal work, to ensurethat all employees share in ourdevelopment fruits.

The principles of equality in SF’s recruitment, promotion and remuneration management

Number of female senior managements 129Percentage of women in senior management 28.5%

28.5%

Increased compared to 2023 1.1%

Number of senior managements 453

Anti-Discrimination and Anti-HarassmentSF has zero tolerance for discrimination and harassment, and explicitly prohibits any form of discrimination based onrace, skin color, ethnicity, gender, sexual orientation, religion, age, ancestry, marital status, physical condition, etc. intheDeclaration on the Protection of Employees’ Rights and Interests, and advocates a workplace culture of mutual respect.The Company has refined the detailed rules for punishment of violations of regulations and disciplines on harassmentthroughthe Regulations on the Administration of Rewards and Punishments, requiring all employees to study and signtheRegulations on the Administration of Rewards and Punishmentsonline, and at the same time promoting anti-harassmentand anti-discrimination promotion through emails and training in various regions offline, so as to create a healthy and equalworkplace environment. In 2024, the Company ensured that 100% of all employees received diversity, anti-discriminationand anti-harassment training by organizing publicity and implementation meetings for employee handbooks and statementson protecting employees’ rights and interests. The Company did not have any incident of discrimination or harassmentthroughout the year.Protection of Women’s Rights and Interests

SF continues to promote gender equality in the workplace and has established a female employee committee to protectthe rights and interests of female employees according to law.

Number of maternity rooms2024About

9,000

peopleNumber of female employees with free female healthscreening checks for cervical cancer and breast cancer

In order to express its care and respect for femaleemployees, SF distributed a total of 90,403 gifts tofemale employees on International Women’s Day in2024, commending 107 most beautiful employeesand inspiring them to forge ahead; Open in-appwelfare purchases to give back to employees fortheir hard work. The Company also set up a cloudcare platform for the March 8th Goddess Festival.The traffic of the live broadcast room reached159,000 on that day, delivering warmth online.In addition, the Company also paid special attentionto the female courier, held the “New EmploymentForm SF Female courier Care Activity”, and releasedfive major caring actions covering rights protection,physical and mental health actions, academicimprovement actions, caring and welfare actions,and exclusive condolence activities.

Pay Tribute to Every Amazing “SHE”

“New Employment FormSF Female courier Care Activity” Site

Support facilities: Maternal and child rooms have been set up in offices across the country to provide private, safe and hygienicbreastfeeding space for lactating female employees.Holiday benefits: Fully implement exclusive leaves for female employees such as maternity leave, prenatal check-up leave,abortion leave, breastfeeding leave and dysmenorrhea leave.Health care: organize female employees with free female health screening checks for cervical cancer and breast cancer; Sendgifts to female employees on International Women’s Day and commend the “most beautiful employees”.Special support: Hold the “New Employment Form SF Female Knight Care Activity”, and launch five action care plans forfemale riders in the same city, including rights protection, physical and mental health, academic improvement, welfare careand exclusive condolences.

Smooth Employee Voice

SF attaches great importance to employees’ voices and suggestions, builds diversified, open, transparent and responsivevoice channels, and encourages employees to express themselves boldly and actively participate in corporate governance.For employees who put forward useful suggestions, the Company provides incentives and growth opportunities; TheCompany commends and affirms organizations that actively adopt suggestions and promote problem solving.In addition to conventional telephone channels (labor union hotline), online channels (“Echo platform” and “I want to report”)and email, the Company has set up scenario-based voice channels such as “ One-stop appeal service”, “ Appeal servicefor the frontline workers”, “ Trade union visit” and Labor Dispute Mediation Center based on different scenarios to quicklyrespond to and solve employees’ demands.

Communication Channel for SF Primary Employees

One-stop appealservice

The one-stop appeal service collects effectiveappeals from employees monthly to distributeto the relevant regional organizations for furthersolutions.

In 202412,219

appeals collected

%resolution rate

Appeal servicefor the frontline

workers

The Company’s policies would be deliveredto the frontline workers in the form of livebroadcast at the first time, including institutionalprocess, system tools, business development,quality improvement and logistics support andemployee welfare.

In 2024

broadcasts

Over

506,000

live broadcast views

Employee carehotline

SF opens an employee care hotline to ensuresmooth procedure in channels to cater foremployees’ needs on weekdays and holidaysand provide timely psychological support andproblem solving solutions for them.

In 202452,546phone calls receivedby the Employee Carehotline Centre

%

hotlineconnection rate

Trade union visit

Through the establishment of an onlineappointment visit platform, the demandsurvey of trade union visits is carried out forall employees every quarter. Trade unionrepresentatives conduct regular offline visitsto listen to employees’ voices, communicateface-to-face with employees, understandemployees’ working conditions, welfare benefitsand career development, and timely feedback employees’ opinions and suggestions torelevant departments.

In 2024

Over

180,000

Employee visit needs

%

Union on-siteattendance rate

Labor DisputeMediation

Center

Carry out consultation and dialogue around theinterests of employees, set up a labor disputemediation committee, formulatethe WorkingSystem of Labor Dispute Mediation Committee,and strive to ensure that contradictions arenot handed in and disputes are not out of thestation, so as to truly eliminate disharmoniousfactors in the bud.

In 2024Over

Handling labor mediation disputes

Democratic Management

SF respects employees’ right to freedom of association and Collectivebargaining negotiation, and establishes a friendly dialogue and collectiveagreements mechanism with trade unions and employee representatives.Employees can openly communicate with the Company’s managementon working conditions and management issues, focus on the actualneeds of grassroots employees, and effectively improve the happinessindex of grassroots employees.The Company elects employee representatives through elections everyyear, and holds SF employee representative conferences regularly. Inkey links such as the formulation and release of system documentsinvolving employees’ rights and interests, the trade union would alsostart temporary workers’ congresses in due course to ensure thatthe decision-making fully absorbs employees’ opinions. In 2024, theCompany established an online management platform, make proceduresonline, and communicate and discuss employee rights and interestsrelated systems such asthe Attendance Management System, theEmployee Handbook, and the Information Security Reward andPunishment Management Measures. At the same time, the Companyactively promotes the signing of collective contracts to ensure that therights and interests of all employees are effectively protected.

As of the end of the reporting period, SF hadestablished

laborunions in its wholenetwork with21,500

representatives.In 2024, there were

elected sta?representatives, and

online staffrepresentatives’ congresses were held.coverage rate of employees in the SFCollective Agreement

%

Main content covered inthe Collective Agreement

RemunerationWorking hours and HolidaysInsurance and BenefitsSafety and health at workSpecial care for female employeesVocational trainingDemocratic rightReward and Punishment SystemMain content covered in the Collective AgreementAdvice and SuggestionsSF continued to scale up the publicity and promotion of the system that collectsadvice and suggestions, encouraging employees to put forward reasonablesuggestions. In 2024, the Company established the country’s first “enterprise-levelcraftsman college” in the new employment form industry, set up a model workercraftsman innovation studio, and encourage employees to focus on the “ five littlematters “ (little inventions, little creations, little innovations, little designs, littlesuggestions) The “Digital Intelligence Union” platform puts forward reasonablesuggestions. The Company updated and published theReasonable SuggestionsManagement Mechanism, rewarded employees who adopted suggestions, andstimulated employees’ “ownership” spirit.In 2024, more than 28,000 employees participated in providing suggestions,collectively submitting over 30,000 proposals. Among these, 4,700 suggestionswere adopted, resulting in rewards for 3,000 employees.SF employees’ rationalization suggestions focused on five categories, includingoptimization of system functions, improvement of operating tools, optimization ofsystem and process standards, improvement of daily operation regulations andimprovement of office environment. Among them, system function optimizationsuggestions account for the highest proportion, reaching

%

.

Optimization ofsystem functionsImprovement ofoperating toolsOptimization of system

operation regulationsImprovement ofoffice environment

50%16%

22%

Employee Satisfaction

The Company conducts a semi-annual satisfaction and engagement survey for all employees, covering the dimensions of“employee perspective” (organization, atmosphere, work, development, reward) and “enterprise perspective” (recognition,recommendation, effort, retention), and reviews the perception changes of employees in each organization in stagesthrough the fit of employee perspective and enterprise perspective.In 2024, the Company conducted employee satisfaction surveys focusing on core issues such as organizational atmosphere,career development, salary and benefits, and working environment. The survey results show that employee satisfactionin 2024 was 92.3%, an increase of 4.5% compared with 2023; Employee engagement was 86.7%, an increase of 2%compared with 2023.The Company tracks the results of the semi-annual employee satisfaction and employee engagement performance overtimeand takes actions in response, formulates optimization measures for key issues, such as optimizing the career developmentchannel of front-line employees and tilting the salary to the front-line, etc. The implementation measures are subject to thesupervision of the majority of employees, and reviews the improvement effects in stages to effectively protect the rightsand interests of employees and enhance their sense of belonging and loyalty.

Results of the 2021-2024 Employee Satisfaction Survey Results

2024202320222021Employee satisfaction92.3%87.8%86.4%86.9%Employee engagement86.7%84.7%86.2%87.5%Employee Care and WelfareSF has built a comprehensive and diversified welfare care systemfor all employees, covering multi-dimensional scenarios suchas job security, medical care, food, housing and transportation,important festivals and important moments in life of employeesand their families. Through the sinking care mechanism, SF hasan in-depth understanding of employees’ needs, effectively solvespractical problems, enhances employees’ sense of belonging andhappiness, and enhances team cohesion and identity.Employee Welfare and Care SystemIn addition to employee compensation, SF offers a wide range of material non-pay benefits to all employees. On thebasis of paying social insurance and housing accumulation fund for all employees on time in accordance with the law, theCompany further built a multi-level welfare guarantee system and provide a series of non-statutory benefits, including:

providing employee canteens, dormitories and other living facilities to meet basic needs; Relying on telecommuting andflexible working hours system to improve work flexibility; We also implement special subsidies such as food subsidies,communication subsidies, transportation subsidies, and cold and heatstroke prevention subsidies based on jobcharacteristics to comprehensively optimize employees’ life and work experience.

202420232022Total investment in employee care (RMB10,000)37,37435,54331,004

Employee Welfare and Care SystemSF provides employees with a variety of welfare care measuresfrom the three aspects of “ensuring basic welfare, improving caring

temperature, and helping long-term development”.Statutory benefit

Providing insurance and housingfund, paid maternity leave,prenatal check-up leave, abortionleave, breastfeeding leave,paternity leave, parental leaveand other statutory benefits

SubsidiesProviding foodsubsidies,communicationsubsidies, transportationsubsidies, winter andsummer subsidies

Living welfareProviding staffdormitory, staff canteen,remote work, and otherliving welfare security

Physical and mental health

Providing healthcare servicessuch as free physical examination,online consultation, videoconsultation, convenientmedicine purchase, psychologicalconsultation, etc.

Festival care

Providingvarious holidaybenefits/activities foremployees andtheir families

Deploying care

Offering freeshipping/family-visit holiday/family-visittransportationallowance, etc.

Performancecare

Providingincentive leaves,activity funds andstudy subsidies

Pension for difficulties

Providing specialgreetings and assistancefor abnormal weather/natural disasters/majordiseases, etc

Care for family

Providingscholarships,grants, andother benefitsto employees’children

Recreational andsports activities

Organizing teambuilding, encouragingparticipation incultural and sportsactivities and holdingart activitiesEducation and skillupgradingProviding subsidies foreducation and skills upgrading

Diversified developmentwithin the Company

Smooth developmentpathways for transfer andtransformation

Honor and commendation

Carrying out daily andannual merit recognition

TrainingProviding multiple learningresources and channels

Raising of care

Guaranteeingbasic welfare

Supportinglong-termdevelopmentCare for the Physical and Mental Health of Employees

SF adheres to the concept of “love-oriented”, always puts the health and safety of employees first, provides comprehensivephysical and mental health support for employees, and protects their physical and mental health in all directions.Safeguarding Physical Health

The Company cares about the health of employees, provides annual health check-ups for all employees, and providesdifferent physical check-up packages according to their age and job positions to help employees identify health risks andobtain timely medical reminders.

Health check-ups for employees were organized, beneting

396,000

people, including cancerscreening, treatment and recuperation for female employees, and free medical treatment for traditionalChinese medicine, dentistry, and ophthalmology.

Carry out safety and health education on the whole network, and publish the “Health and Safety ThemeTraining Course”, with a total of more than13,000 learners.The “Ankang Cup” safety production labor competition was launched, attracting nearly

300,000

people to participate.

Forespace (Fengsheng) platform has introduced the Medical Housekeeper service and provided onlineconsultation and drug purchase preferential services, with a total of

8,246

online consultations and5,805

drug purchase services.

Healthcheck-up

Safetyeducation

MedicalHousekeeper

Service

The Company has carefully prepared a series of caring measures for the courier, including caring collection anddelivery tools, caring mobile kitchens, heart-warming peak demand solutions, and caring trade union representativebusiness vanguard teams. In 2024, the Company distributed more than 330,000 bicycle baskets to the courier to helpthe courier collect and deliver efficiently. In addition, more than 4,000 love mobile kitchen activities have been carriedout to send hot food to the courier, cheer them face to face, and encourage everyone to win the peak.

Let the courier warm the heart and stomach during the peak period

The “Mobile Kitchen” visits courier stations, offering delivery personnel warm and comforting meals

Caring team brings coolness to courier on summer dayHand out thermal kits to the employees at the transfer station

Caring for Mental HealthSF also attaches great importance to employees’ mental health, and helps employees establish correct mental healthconcepts, master mental health knowledge, and relieve emotions and stress by setting up psychological counselingplatforms, providing psychological counseling services and holding mental health seminars.

Care about Mental HealthMental health articles were pushed via Forespace (Fengsheng) platform, service account and otherchannels, with more than230,000 viewsThe “Shun Xin Ru Yi” self-psychological relaxation experience platform has been viewed more than180,000 times

One-to-one psychological counseling service from the online and offline has served for more than854 peopleSetting up a 24-hour hotline with 288 hotline consultation services

SF has organized1,800 psychological care lectures with more than 53,830

participants

800 Shunxin service centers have been set at outlets across the network1,781 psychological activities were conducted, covering more than 52,000 people

33 star employee homes were built, and nearly 1,000 employee homes nationwide were

equipped with stress relief props and posters

Platform publicity

Psychological care

Psychological lectures

Psychological activity

Workplace remodeling

Safeguarding couriers ‘s healthMobile physicalexamination vehicle

Organized 33 mobile physical examination vehicle services, covering a total of13,000couriers, providingconvenient health examination services for couriers.Equipped with firstaid kit

Optimize the allocation and management of emergency medicines to ensure that couriers can quickly obtainnecessary emergency medicines and equipment for treatment. More than 25,000first aid kits/boxesare deployed throughout the network.Coping with ExtremeWeather

Summer cooling activities were held in high-temperature areas in summer, covering more than13,500outlets and benefiting more than550,000people.In extremely cold weather, the entire network is equipped with warm hats and other cold-proof materials,covering more than27,000 transit sites and benefiting more than 94,000 people.Purchase BusinessInsurance

The investment cost to buy commercial insurance for all the couriers is about RMB55 million.

Critical illness insurance was awarded to outstanding couriers, benefiting57,000people in total, withan investment cost of about RMB

8.6

million.Conduct first aidtraining

The “Walking First Responder” campaign was carried out, and6,416employees were organized toparticipate in first aid training and training on the use of AED (Automated External Defibrillator), and AEDequipment was placed in

outlets and venues. As of the end of the Reporting Period,1,713employeeshave successfully obtained first aid certificates.Encourage safedriving

Pay attention to the driving specifications of couriers during the collection and delivery process, and issuethe “Notice on the Incentive Plan for Safety and Image Management of Two-and Tricycles” to reduce theoccurrence of traffic safety accidents of two-and three-wheeled electric vehicles through financial i

ncentives.In 2024, the accident rate per 100 vehicles of the courier’s two-and three-wheeler was 0.193, a

year-on-yearreduce of

20.98

%.

In addition, SF provides help and support to employees with practical actions, and comprehensively improves employees’work experience and happiness in life.

Family Benefits LeaveIn accordance with national laws and regulations and regional administrative regulations, the Company providesqualified employees with comprehensive paid maternity leave, covering maternity leave, prenatal check-up leave,paternity leave, abortion leave, breastfeeding leave and parental leave, and comprehensively supports the protectionof employees’ rights and interests during childbirth and childcare stages.In addition to statutory holidays, the company also provides employees with special paid leave, such as Spring Festivalspecial annual leave, family visit leave, etc., to help employees better balance work and life, spend quality time withtheir families, and promote family harmony.Offering Student Subsidies/ Scholarship

Golden Autumn Subsidies: the Company offered student subsidies of RMB 1.54 million to the familiesof employees with serious diseases and major difficulties Scholarships for college entrance exams: RMB368,000 scholarships were given to 183 children of employees who were admitted to universities.

Carrying out Greetings and Assistance Activities

The Company visited more than 19,000 employees and their families with difficulties, and the amount ofassistance was about RMB

11.64 million.

Work-Life Balance

SF always cares about the living and working conditions of employees and their families, and helps employees solvepractical life difficulties and promote work-life balance by implementing diversified care measures for employees’ familiesand carrying out rich cultural and sports activities for employees.Family Supporting Programs

SF not only cares for employees, but also extends its care to employees’ families. By carrying out employees’ family careactivities, SF provides exclusive benefits, enhances employees’ family happiness and further unites the centripetal forceof the team.

Advancement Benefits

Provide additional benefits for the “Feng Er Generation” who havebeen admitted to universities, such as gift packages, luggage deliverybenefits, district tea parties, etc.; Additional scholarships

were awardedto183 students who have been admitted to key universities.

SF employees’ children are awarded for their college

entrance exam achievements

Summer Camp

More than 2,000 employees’ children were organized toparticipate in summer camp activities, including study tours in Beijing,SF, and participation in government organized kindergarten courses.

In 2024, the SF labor union joined hands with allemployees to celebrate the Spring Festival and hold alarge-scale offline Spring Festival gala across cities for thefirst time. A total of more than 600 people participated, andthe cumulative viewing traffic in the live broadcast roomexceeded 1 million. In addition, Lantern Festival activitieswere held simultaneously in 30 regions of the Companyto celebrate the Lantern Festival.

Spring Festival Ceremony Series Activities

Spring Festival Series Activities

In 2024, SF held national sports games in 44 regionsacross the network, attracting 63,000 employees toactively participate. At the same time, SF held a specialsports games in South China, with more than 500 peopleparticipating. The National Sports Event not only stimulatesemployees’ team spirit and enthusiasm for sports, but alsostrengthens the cohesion of the enterprise, allowing moreemployees to feel the care and support of the enterprise.

“All people move, vitality wins the future” National Games

National Games

Enrich Employee Leisure

The Company regularly holds healthy and diverse cultural and sports activities for employees to help employees relaxafter work, stimulate vitality and cohesion, and balance work and life. In 2024, the Company organized a total of 1,438cultural and sports activities such as birthday parties, symposiums, and fun sports meetings, covering one million people,creating a positive and warm working atmosphere for employees.

Opening Ceremony of the SF Summer Camp

for Children

Stand Firm on the Frontline of SafetySF always regards safety production as the cornerstone of the sustainable development of enterprises, continuouslyimproves the safety risk management system, deeply integrates the concept of safety production into every link of dailyoperations, and creates a safe and healthy working environment for all employees.

Improve the Safety Management System

SF strictly abides by the national laws, regulations and standards in the field of production safety, and combines therequirements of the standard of occupational health and safety management system (ISO 45001), theGuideline of ChinaOccupational Safety and Health Management System(GB/T33000) and NOSA five-star system standard (health, safety andenvironment). SF builds a safety production panorama covering 11 units and a total of 66 safety production factors, forminga systematic safety production compliance database to ensure the safety and controllability of the entire operation chain.

Policy and CommitmentsSafety Management PrinciplesSafety first, focus on prevention, legal compliance, full performance of duties, continuous improvement and sound developmentSafety Management Commitments

1. Abide by national laws and regulations, standards and management requirements;

2. Company’s top executive is the first responsible person for safety of SF, and the chief leaders of each organization are

the first responsible person for safety of their own organizations In daily work, they implement the code of conduct andplay the leading role in safety;

3. Adhere to the principle of people first and focus on prevention and achieve the target of “zero accidents”;

4. Provide necessary support, including manpower, resources and funds;

5. Establish communication channels on safety management for all employees and stakeholders;

6. Control production safety risks effectively and take actions to minimize the risks;

7. Optimize the allocation of safety management resources and continuously improve the safety management;

All of our stakeholders, including employees and contractors, are obligated to keep the Company’s commitment to productionsafety management.

Comprehensive Work Safety Framework

SiteManagement

BasicManagement

Occupational

Health

Facilities and

Equipment

PeopleManagement

Posting and

Delivery

Safety

Emergency

andAccident

StakeholdersManagement

Transportation

Safety

ContinuousImprovement

RiskAssessmentand Control

Safety Management Framework and Responsibilities

In order to fully implement the company’s safety management policies andstandards and ensure the effective supervision and management of safetymanagement in various regions, SF has defined a three-tier managementorganization composed of the group headquarters, regions and grass-rootslevels, and formulated and improved a series of safety systems to ensure thecompany’s safe production and operation.The Risk Management Committee of the Board is responsible for coordinatingand making decisions on the strategic planning of production safety, approvingand promoting the formulation, implementation and changes of relevantpolicies.The Board of Directors has established a Safety Production Committeeunder its Risk Management Committee. The Chairman of the Board, whoalso serves as the CEO, chairs the Safety Production Committee. As thefirst person responsible for the Company’s safety production, the Chairman,who also serves as the CEO, is fully responsible for the Company’s overallsafety production work and ensures robust leadership and execution in safetyoperations. The Safety Production Committee is responsible for guiding theCompany’s safety risk management, establishing and strengthening the safetyproduction risk management and control mechanism, regularly evaluating theperfection and effectiveness of the safety risk management system, providingprofessional opinions and suggestions, and reporting the progress andachievements of safety risk management to the Board on a quarterly basis toensure the implementation and implementation of safety production strategies,objectives and performance.The Safety Production Implementation Working Group is a cross-functionalvirtual organization under the Safety Production Committee. It aims to unifythe safety production thinking across functional organizations, coordinatesafety production positions, and expedite major safety production initiatives.The group is responsible for conducting comprehensive safety productioninspections and special supervision, guiding and coordinating internal safetyproduction enforcement efforts, and discussing and analyzing proposals forsignificant safety production measures.Safety Production Management System

SF regularly audits the safety management system documents every year to provide scientific, appropriate and efficientsafety production management guidance to all organizations. In 2024, according to the risk management and controlrequirements and the accumulation of actual management experience, the Company added and revised six safetymanagement systems, namely,Standardized Supervision Mechanism, Regulations on Safety Management of Transit DepotsOperations, Regulations on Closed Management of Transit Depots, Measures for Safety Management of Forklifts in TransitDepots, Property Safety Management Regulations and SF Vehicle (Automobile) Safety Driving Operation Standards, tofurther strengthen operational specifications and safety management.In order to fully implement the main responsibility of production safety, prevent and reduce production safety accidents, andensure the safety of employees’ lives and property, the Company continues to promote the safety production responsibilitysystem for all employees, organizes all employees to sign theSafety Production Responsibility Letter, and clarifies thesafety management responsibilities at all levels: the chairman and CEO are the first responsible person for productionsafety, responsible for formulating safety production targets and making commitments to ensure safe and healthy workingconditions for all employees; Managers at all levels are directly responsible for the safety production work within theirjurisdiction, ensuring the effective implementation of safety measures and earnestly performing safety management duties.Safety Management Target

SF sets clear and quantifiable annual safety targets and regularly reviews safety management and its effectiveness.The company aims to reduce the accident rate of casualties in millions of express deliveries, and the target covers allSF employees and contractors. The compensation incentives of senior management (including CEO) and all safetymanagement personnel are linked to the improvements in Health & Safety performance.

SF Safety Management

Framework

Risk ManagementCommittee of the Broad

Safety ProductionCommittee

Safety ProductionImplementation Working

Group

In 2024, SF did not have major safety production accidents or major on-site fire accidents with liability, and the accidentrate of casualties in millions of express deliveries dropped by 5% compared with 2023, successfully achieving the 2024safety management target. The company will continue to optimize the safety management assessment mechanism, clarifysafety targets for 2025 and complete indicator decomposition, strive to achieve good performance in the management andcontrol of key accidents such as site safety production liability accidents, spontaneous combustion accidents, and trafficaccidents, and continue to improve safety performance.Description of 2024 Safety Management Targets2024Progress0 major production safety accidents0Achieved0 major on-site responsible fire accidents with liability0AchievedThe accident rate of casualties in millions of express deliveries

decreased by5% year-on-year

Decrease 17.2%AchievedSF Key Safety Production Management PerformanceIndicators in the Last Three Years

202420232022Major express deliveries fire accident000Class I and Class II fire accidents at major sites000Special safety inspection and rectification rate of potentialsafety hazards in activities

100%100%100%

The data on the casualty rate per million shipments covers all SF employees and contractors.

Percentage of business operationscovered by ISO 45001 is

%

Safety Management System CertificationSF has obtained the standard of occupational health and safety managementsystem (ISO 45001) certification required for all business operations, coveringall employees and contractors, ensuring uniform implementation of high safetystandards throughout the network.

ISO 45001CertificationStatus

Shenzhen S.F. Taisen Holding (Group) Co., Ltd.Phoenix-Wings (Shenzhen) Co., Ltd.SF Co., Ltd.Jiangxi Fengyu Shuntu Technology Co., Ltd.SF Group (Shanghai) Co., LtdShenzhen SF Comprehensive Logistics Service Co., Ltd.Guangzhou SF Co., Ltd.SF Multimodal Transportation Co., LtdGuizhou SF Co., Ltd.

Shenzhen Chengfeng Commercial Enterprise ServiceCo., LtdSuzhou SF Co., Ltd.Suzhou Fengyutai Enterprise Management Co., LtdXinjiang SF Co., Ltd.Shanghai Shunxiaofeng Distribution Co. Ltd.SF Technologies Co., Ltd.Wuhan Shunfeng Zhida Logistics Co., Ltd.Shenzhen Fenglang Supply Chain Co., Ltd.Shenzhen Xingshun Intelligent Supply Chain Co., Ltd.GZ SF Pharmaceutical Supply Chain Co., Ltd.

Stable and Safe Production

Build an organizational structure

Define evaluation units

Identify sources of safety risks

Assess the risk level of safety

Safety risk classification and control

Develop risk control measures

Define evaluation units based on field scenarios associated with departments, positions,operational activities and operational procedures

Set up a safety management working group

Identify hazardous sources from the four elements of “people, materials, managementand environment”

Evaluate the risk level of safety using the Level of Risk Evaluation of OperationalConditions (LEC method)

Identify the management layer based on the level of safety risk

Control measures include but are not limited to engineering and technical measures,management measures, education and training measures, personnel protection measures,and emergency measures

SF Safety Risk Identification,Evaluation and Control Framework

SF continues to improve the construction of the “dual prevention mechanism” of risk classification management andcontrol and hidden danger investigation and management, establishes a scientific and systematic management processin safety risk prevention and control and hidden danger management, builds two firewalls to prevent production safetyaccidents, and continues to improve safety management capabilities to comprehensively ensure the company’s productionand operation safety.

Safety Risk Hierarchical Management and ControlSF uses the LEC risk assessment method to assess safety risks, and determines the risk value by calculating the productof the likelihood of occurrence of the event (Likelihood), the frequency of exposure to the hazardous factor (Exposure),and the the severity of the consequences (Consequence), providing scientific basis for risk quantification. According to therequirements of theRegulations on Hazard Source Identification, Risk Assessment and Control Management, all regionscarry out comprehensive safety risk identification and assessment work at least once a year, and divide risks into fourlevels according to the principle of risk classification management and control: material risk, major risk, general risk andlow risk. They define the risk management and control levels to ensure that all potential safety risks are timely identified,evaluated and effectively controlled.Risk LevelRisk Level

Risk Value Assessed Risk Value Assessedby LEC Methodby LEC Method

Risk Control LevelRisk Control Level

Level I: Material riskD≥320

Company level (functional departments of theheadquarters)Level II: Major risk160≤D＜320Department level (business/allocation area)Level III: General risk70≤D＜160

Workshop level (transit center, service outlets/supplystation)Level IV: Low riskD＜70Team/position level

In 2024, the company dynamically updated and hierarchically controlled 835 identified safety risk sources based on thesystematic health & safety risk assessment of the workflow of 40 regions and all positions across the entire network. Byestablishing a risk list management mechanism, formulating targeted control measures, and carrying out special capabilityimprovement training for safety management personnel, the whole process closed-loop management of safety risks isrealized.At the same time, the company has established an open and transparent safety communication mechanism, encouragedemployees to actively make suggestions and suggestions through diversified channels, promptly discovered and preventedpotential safety risks, promoted the continuous improvement of safety management level, and jointly built a strong corporatesafety defense line.

Fengsheng APP working group

Fengsheng APP's "Goldenideas" and "Soundtransmission" functions

Safety information system

Trade union hotline, tradeunion service number

Channels foremployees toescalate safety

incidents

Investigation and Management of Potential Safety HazardsIn 2024, SF continues to deepen the production safety assessment mechanism of “headquarters supervision and regionalself-examination”, comprehensively improve the independent safety management capabilities of each region, ensure thatsafety management has no blind spots, and fundamentally reduce or eliminate potential safety hazards.Improve the Normalization Mechanism of Self-examination and Self-correctionof Major Accident Hazards

In order to strengthen the investigation and management of hidden dangers of accidents, SF revised and improved the

Regulations on the Administration of Investigation and Management of Hidden Dangers of Safety Hazards according to theStandards for Judging Major Safety Production Hidden Dangers of Postal Enterprises and Express Delivery Enterprises.Based on this, each region has formulated regional-level hidden danger investigation and management measures in detailto ensure that the inspection scope covers key areas such as fire protection, electricity consumption, vehicles, equipment,operation, and delivery, and implements hierarchical management and control of hidden dangers. As of the end of 2024,the company has carried out 31 headquarters-level assessment inspections, 14 special inspections and 514 district-levelhidden danger inspections, comprehensively covering various potential risk points.Improve the Tracking and Supervision Mechanism for the Management of MajorAccident HazardsAccording to the requirements of theRegulations on the Administration of Investigation and Management of HiddenDangers of Safety Hazards, the Company has established a strict mechanism for removal of potential hazards, and clarifiedrectification measures, plans, responsibilities and emergency plans. The main responsible persons at all levels supervisethe rectification of potential safety hazards throughout the entire process, and the safety management organization orpersonnel verify the rectification situation to ensure closed-loop management of potential hazards and achieve dynamicclearing. In 2024, a total of 1,298 potential safety hazards of various types were discovered in headquarters-levelassessments and inspections, and more than 210,000 potential hazards of various types were reported through the systemin various regions of the entire network, all of which have been rectified as planned.

Establish and Improve the Database of Potential Safety Hazards, Investigationand Analysis Mechanism

SF has established a three-level database of potential safety hazards from headquarters-region-site through systematicand online collaborative documents to achieve full summary and inventory management. By regularly holding special safetymeetings or setting up safety topics, notifying key issues and common hidden dangers, the direct management departmentconducts in-depth analysis of causes, identification of responsibilities, suggestions for improvement and special rectificationand improvement, forming a continuously optimized safety management mechanism.

Promote Advanced Management, Engineering Management, SystemManagement, and Regional Management of Key Accident Risks

Relevant functional departments jointly carry out special governance work for high-risk areas on the site such as chargingareas, platform areas, and areas of diversion of people and vehicles, as well as high-risk operations such as second-wheel and third-wheel charging, cage truck operation, handcart operation, forklift operation, and large-scale loading andunloading. SF focuses on accident risks such as fire, mechanical injury, vehicle injury and fall from height, outputs keyrisk management and control measures to each business unit in real time, and regularly reviews the management effectsto ensure that high-risk areas are effectively controlled.

%Proportion of regions that have accepted the company’ssafety production system evaluation

%

Percentage of distribution centers

that has been evaluatedby the company in terms of safety production systems

The distribution center is a specific area used for receiving, storing, loading and dispatching goods in the logistics transportation process.

In addition, in order to continuously improve the overall level of flight safety, SF Aviation strictly implements the alcoholtesting system for team members, and arranges aviation doctors to conduct alcohol testing and spot checks on thedeparture crew members of an outside station for 1-2 days every month to ensure that the crew members fully meet thesafety requirements when performing their tasks, providing a solid guarantee for air transportation safety.

Rectification of Key Hidden Dangers

In 2024, the company has carried out more than 20 special rectification activities for various risks, including:

Comprehensive safety improvement workComprehensive safety improvement workSpecial safety rectification workSpecial safety rectification work? Investigation and rectification of hidden dangers of majoraccidents in production safety? Special rectification actions of “three systems” for deliverysafety? Notice on carrying out the 100-day safety activity of“eliminating hidden dangers, containing accidents, andsafeguarding peak periods? Carrying out safety assurance activities during the peakbusiness period at the end of the year and the beginningof the year in 2025? Carrying out joint safety inspections at the end of 2025

? Regarding the standardization and standardizationinspection of business/workplace signboards? Special rectification of potential safety hazards ofhandcart? Carrying out quarterly inspections of hidden dangersof transit equipment? Carrying out quarterly fire safety inspections? Special rectification of forklift foot stopper? Carrying out special rectification of telescopicmachinesContractor Safety ManagementSF implements the health and safety management standards and performance metrics consistent with the company’sinternal health and safety management standards for all contractors and their personnel, regularly supervises and auditsthe safety management performance of contractors, and ensures that all employees (including contractors) are included inthe company’s health and safety performance metrics system. Through the whole process management mechanism, thecompany integrates safety requirements into all aspects of contractor introduction, inspection, evaluation and eliminationto ensure the safety and controllability of the supply chain.

Introduction stage:

The company incorporates safety management requirements into thecontract terms, signs safety management agreements with contractors,and clarifies safety responsibilities and standards. In 2024, the signing rateof contractor safety management agreements reaches 100%, eliminatingpotential safety hazards from the source.The Company conducts third-party safety assessment on contractors atleast once a year, and requires rectification or direct elimination of non-compliant suppliers to ensure the implementation of high standards ofsafety management. In 2024, the company conducts safety managementcapability assessment and inspection of more than 300 contractors in31 regions and 105 grassroots sites, covering key indicators such asqualifications, safety protocols, safety assurance plans, and trainingrecords.

Inspection andassessment stage:

Primary Safety Management Qualification Requirements for SF’s Contractors

Essential qualification requirements for the contractors include:

(1) Having a business license that matches the business services it provides;

(2) No major or above level work safety accident within one year;

(3) Having applicable personnel qualification certificate, special equipment use registration certificate and transport vehicle

license;

(4) Purchasing necessary insurance for employees, such as transportation, warehousing or personal injury (accident)

insurances.

Occupational Health and Safety trainingSF has built a comprehensive safety training system to provide customized training content according to different ranksand job requirements. In 2024, the company establishes a safety knowledge map and safety management matrix. Thetraining content includes six major areas: legal compliance, safety production management, traffic safety, emergencymanagement, delivery safety and occupational health. It not only covers basic safety knowledge, but also goes deep intorelevant policy requirements and risk management in specific work scenarios to ensure that employees have safety skillsthat match their responsibilities.In order to continuously improve the safety awareness of all employees, the Company carries out diversified safetyeducation activities through a combination of online and offline methods:

2024 SF Safety Training Performance Data

SF provides internal training resources for safety management personnel to obtain professional qualificationcertificates. As of the end of the reporting period, the number of employees holding safety qualification certificatesreached

.

A total of 19 safety trainings were conducted for safety management professionals, covering 6,385people, including:

SF conducted a total ofwith a cumulative number of

covering all employees, and a totaltraining time of

Safety managementsharing sessions

External tutoring sessions

Special safety trainings

198,000

safety trainings

703,000

participants

10.35 million

hours

SF Safety Training System

Senior ManagementHold “professional lectures” to facilitate the exchange of excellent management experience, thusempowering senior management by equipping them with safety management skills.

Safety management professionalsProvide various forms of training for safety management professionals within the network, includinginternal sharing sessions, external tutoring sessions and special safety training.All workforceDevelop their own safety training agenda by each region across the network, and providestandard safety training for all employees (including contractors) in the region.

● Offline training: SF regularly carries out training activities including safety production

month, safety knowledge competition, safety hazard investigation, Spring Festivalbusiness peak guarantee, venue standardization improvement and so on, to strengthenemployees’ safety practical ability;

● Online publicity and implementation: Through platforms such as safety information

account and Fengsheng APP, targeted safety tips and guidance are sent to employeesduring key nodes such as holidays, business peak periods and seasonal changes toensure that safety awareness is deeply rooted in people’s minds.

%Safety training coveragein 2024 (includingemployees andcontractors)

In terms of aviation safety training, SF Aviation actively monitors crew flight quality data, conducts in-depth analysis oftypical violation incidents and monthly incident incidence TOP3 personnel, and accurately identifies potential risk points.Based on the data analysis results, the Company regularly conducts special trainings such as technical evaluation andintensive simulator training to comprehensively improve the technical level and emergency response capabilities of crewmembers, and ensure that each crew member can meet and maintain the highest safety standards.

Safety Emergency DrillsSF strictly complies with the requirements of theEmergency Response Law of the People’s Republic of Chinaand theWork Safety Law of the People’s Republic of China, and has established systematic and standardized emergency responseprocedures and norms. The Company has established an emergency plan system covering various emergencies, whichprovides clear and operable action guidelines for internal operations, and significantly improves employees’ ability torespond quickly and effectively to emergencies.In order to continuously test and optimize emergency plans, SF organizes two large-scale fire emergency drills everyyear in accordance with national regulations, and continuously strengthens the emergency response mechanism throughactual simulation to ensure that actions can be taken quickly and orderly when emergencies occur to minimize losses andimpacts. In addition, the Company regularly conducts emergency drills in various fields such as explosion prevention, anti-terrorism, transportation and public health, and conducts special drills for business scenarios such as forklift accidents,equipment injuries, high temperature and heatstroke, so as to comprehensively improve the Company’s comprehensivecapabilities in safety emergency response.In order to enhance employees’ safety awareness and emergency response capabilities, and ensure the safety of thecompany’s property, express delivery and personnel lives, the company organizes network-wide safety knowledge trainingand emergency drills in 2024, and rewards regions that actively organize drills and perform well.

In 2024, more than 9,000 fire safety trainings and emergencydrills are held, with a cumulative number of participants reaching morethan970,000.

SF fire emergency drills

Building a Responsibility Value Chain

SF always regards supplier management as an important link of sustainable development, upholds the core valueof “honesty as the way”, and is committed to building a cooperative environment of equality, respect, transparency,development, win-win and sunshine. The company has established long-term, stable, mutually beneficial and win-winstrategic cooperative relationships with suppliers to jointly build a responsible and sustainable supply chain ecosystem.Supplier Management SystemSF has built a comprehensive supplier management system, strictly implemented the supplier management system, andcontinuously improved the ESG risk management capabilities of the supply chain. In 2024, the Company issued the “SF’sCode of Conduct for Suppliers” and other systems, incorporating ESG requirements such as business ethics, safety andoccupational health, labor and human rights, and environmental protection into the terms of supplier contracts, and regularlyreviewing supplier performance. For suppliers who have major disputes and fail to rectify on schedule, the company willterminate cooperation to ensure the stable operation of the supply chain.Procurement Supervision and Management Structure

The procurement activities of SF Group are undertaken bythe procurement supply chain center, and decisions aremade on major procurement matters through the collectivedecision-making mode of the procurement committee. Inorder to ensure the risk supervision of the procurementprocess, SF has an independent risk supervisionorganization to strictly monitor the whole procurementprocess, and at the same time, an internal control groupin the procurement supply chain center has been set up toconduct self-examination and self-correction.

Procurement oversight and management structure

Risk Monitoringof Procurement

Activities

Risk Monitoring

Organization

Procurement Decision

Management and Execution

Procurement

Procurement CommitteeProcurement Supply

Chain Center

Supplier Lifecycle Management

Classification and gradingAccording to the supplier’s cooperationperformance, the Company adoptsdifferentiated and dynamic grading andclassification management for suppliers.Access accreditationThe requirements for supplier admissioncertification are clarified in terms ofadmission channels, admission conditions,and certification audit process.

Performance managementThe Company establishes a scientificand rational performance managementand evaluation mechanism, developsquantifiable performance evaluationcriteria and conducts multi-departmentalperformance evaluations.

Routine management

Three mechanisms have been establishedto strengthen the routine managementof suppliers: a training and coachingmechanism, a routine audit and inspectionmechanism, and an information changeapproval mechanism.

Exit management

There are two forms of supplier exitmanagement: penalty exit and non-penaltyexit to standardize the supplier exit process.

Penalty management

For suppliers with breach of contractand discipline in the course of businesscooperation, penalties are imposed withreference to theSF Group SupplierPenalty Management Measures.

Supplier Digital Intelligent ManagementThe company continues to promote the digital management process of suppliers, and completes the construction of thedigital intelligent procurement platform (DIPP) in 2024 to realize functions such as automatic deposit collection and refund,electronic bidding, and CA digital certificates to improve the convenience and security of supplier cooperation. In addition,the Company further improved the efficiency of supplier management and strengthened the risk management and controlcapabilities of supplier cooperation through tools such as supplier management board, digital files and risk models.Supply Chain Risk ManagementSF regularly conducts comprehensive assessment and identification on the environment, health and safety, labor rights andmoral hazards of suppliers based on their locations, industries and business categories, and systematically evaluates theperformance of suppliers through a combination of on-site audits and written audits. According to the evaluation results, thecompany formulated targeted training and improvement plans, clearly required suppliers to make rectification within a timelimit, and continuously followed up their improvement progress. At the same time, suppliers with outstanding performanceare evaluated and commended, and benchmark cooperation cases are established to promote the improvement of theoverall level of the supply chain.In 2024, SF conduct comprehensive evaluation management of suppliers:

● Assessed 1,422 key suppliers with 100% coverage● On-site audits of over 1,392 suppliers, with an audit pass rate of 91.3%

●The number of significant suppliers assessed as having significant actual or potential negative impacts was

●Percentage of significant suppliers assessed as having significant actual or potential negative impacts withcorrective actions reached

40.5%

●Among the significant suppliers assessed as having significant actual or potential negative impacts, the numberof suppliers that terminated cooperation was

●In the process of supplier implementation of corrective action plan, the number of important suppliers supported

by SF plan is49, and the actual support is 49, with 100% coverage rate●Carry out supplier evaluation work, selecting 1 annual strategic supplier, 18 outstanding suppliers, and62 other individual awards and excellent award suppliers, totaling 81Supplier Environmental and Social Impact Assessment

The Company attaches great importance to the performance of suppliers in terms of environmental and social responsibility,and through strict regulations and guidance, ensures that suppliers meet the requirements in the fields of environmentalprotection, safety and labor rights and interests, and promotes suppliers to strengthen their own environmental management,safety and other social responsibility performance, to achieve the long-term win-win development goal.

Environmental protectionHealth and safetyLabor requirements and protectionEnvironmental permitting

and reportingPollution prevention

Exhaust emission

Occupational safetyEmergency preparedness

Labor requirementsFairness and equalityEmployee protection

In 2024, the Company continues to promote environmental and social responsibility practices in the supply chain throughthe following measures to build a value chain that has a positive impact on society and the environment:

Building a Sustainable Supply Chain

SF adheres to the cooperation purpose of honesty, fairness and justice, establishes transparent access standards, fairprocess management mechanism and fair supervision mechanism, builds a responsible and sustainable procurementenvironment, and helps achieve long-term win-win results with partners.

Green ProcurementSF has formulated theGreen Procurement Management Regulationsto integrate environmental protection requirementsinto the whole life cycle management of suppliers. Enhance the sustainable development awareness of procurementmanagement professionals through online and offline training and publicity. In procurement decisions, SF gives priority toenvironmentally friendly products and services in order to save energy, water and material, reduce resource consumptionand environmental pollution, and promote the implementation of green procurement concepts.

Procurement Integrity ManagementSF continued to improve the anti-corruption compliance management system, formulatedthe Sunshine ProcurementNotification Letter, clarified the responsibility of both parties for integrity and co-construction, and signed theIntegrity andIntegrity Agreementwith suppliers, strictly prohibiting the soliciting, offering and accepting bribes, and ensuring the legaland transparent business activities. In 2024, the company introduced an on-site auditor mechanism to identify potential risksand correct them in time through on-site audits of suppliers’ production sites and detailed checks of suppliers’ informationsubmitted by suppliers, so as to improve supply chain transparency.

In 2024, all of SF's suppliers signed social responsibility agreements, with a coverage rate of

%.

●Sustainability survey: designed and published the “Supplier Sustainability Survey Questionnaire”, covering the

three dimensions of environment, society and governance, and comprehensively evaluated its sustainabilityperformance;

●Responsibility clauses are included in contracts: social responsibility clauses such as environmental

protection, health and safety, and labor rights are included in supplier contracts to clarify ESG requirements;●Certification attention: during the supplier admission and evaluation stage, focus on the certification of its

ISO environmental management system, occupational health and safety management system and information

security management system;

●Regular assessment and examination: incorporate the practical performance of suppliers in environmental

and social responsibility into regular assessment indicators to promote continuous improvement;

●On-site audit and support: Conduct on-site audits of suppliers around key environmental and social issues,

provide rectification opinions and support to suppliers with problems, and help them improve their sustainable

development capabilities.

Supplier TrainingSF’s systematic supplier empowerment plan covers three dimensions: ESG training, ESG practice benchmarking andESG capability improvement. By regularly sharing industry insights and best practices in the fields of on-time delivery andquality management, it helps suppliers comprehensively improve ESG management level and performance. In 2024, SFconducted a total of 1,273 hours of supplier training, achieving full coverage of key suppliers.

ESG training: Provide comprehensive ESG training to all suppliers to ensure that each partner understands and followsthe company’s ESG standards and requirements. The training content covers key modules such as anti-corruption, qualitymanagement, and environmental protection to help suppliers improve their ESG awareness and practical capabilities.ESG practice benchmarking: The Procurement Supply Chain Center communicates with suppliers on sustainable

supply chain management matters, shares industry best practices, and helps suppliers identify their own gaps and takeimprovement measures to meet SF’s sustainable development requirements.

At the same time, SF continues to upgrade its digital and intelligent procurement management system, and has realizedearly warning of collusive bidding behavior and identification of blacklisted supplier relationships, ensuring that dishonestsuppliers cannot enter the company’s supply chain system, preventing potential commercial bribery and unfair competition,and maintaining the company’s reputation and compliance.

Supplier Anti-corruption Initiative

Registration

All suppliers are required to proactively declare the conflict of interest relationship, with100% of declarations in 2024.

BiddingSupplier affiliation is monitored to prevent their collusion with other SF suppliers.

Contactconclusion

TheIntegrity Agreementshall be signed. Reporting channels should be clearly stated inthe framework master agreement, sub-agreement, and bidding documents. If suppliersdiscover acts such as solicitation of bribes, they can report the complaint.

In 2024, SF conducted

anti-corruption trainings with9,096 suppliers participating.

In 2024, the signing rate ofSupplier Integrity and Integrity Agreementsreached

%.

On December 24, 2024, SF held a DIPP (Digital Intelligent Procurement Platform) system operation training andexchange meeting to conduct special training on switching the procurement system from SRM to DIPP. The meetingattracted more than 150 suppliers to participate. Through in-depth explanations and practical drills, it ensured thatsuppliers were proficient in the operation of the new system, ensured the smooth connection between the twoparties’ businesses, and further strengthened the cooperative relationship.

System Switching Training to Ensure Smooth Business

Equal Treatment of Small and Medium EnterprisesSF actively supports medium, small and micro enterprises and promotes supply chain diversification and inclusivedevelopment. In 2024, the company disclosed the payment information of small and medium-sized enterprises to the publicin the national enterprise credit information publicity system in accordance with regulations, and there was no overduepayment of small and medium-sized enterprises. At the same time, in some low-risk business scenarios, the registeredcapital requirements of suppliers are reduced to help small, medium and micro enterprises participate in the company’sbusiness.

ESG capability improvement: SF carry out long-term supplier capability building support projects for specific ESG topics,systematically improve the ESG management practices and performance of suppliers, and promote the overall sustainabledevelopment level of the supply chain.In addition to ESG training, SF also provides other comprehensive and systematic training and support to suppliers to helpthem better understand and implement the company’s procurement management requirements.

In 2024, SF held an industrial construction supplierconference, inviting a total of 114 representativesfrom 53 industrial construction suppliers (includingconstruction general contracting, decoration and coldstorage engineering) who have participated in thecompany’s project cooperation in the past two yearsto attend the conference. The conference focused onconveying SF’s procurement management philosophy,work process, project management objectives and specificrequirements, enhancing suppliers’ understanding andrecognition of SF’s management system, promoting theirefficient performance of contractual obligations, andfurther consolidating the long-term and stable cooperativerelationship between the two parties.

Build Communication Bridges and Deepen Win-Win Cooperation

SF held industrial construction supplier conference

Sustaining Commitments to Social Wellbeing

SF’s service network for delivering agricultural products

SF always regards giving back to the society as its corporate mission, gives full play to the advantages of digital operationand responsible supply chain, actively participates in rural revitalization, education charity, medical assistance, socialdisaster assistance and other fields, fulfills social responsibilities with practical actions, and promotes social harmony andsustainable development.

Rural RevitalizationAs a leading comprehensive logistics service provider in China, SF has always closely linked corporate development withsocial responsibility. Relying on its leading logistics network, advanced packaging technology and efficient distributioncapabilities, SF has deeply cultivated the field of agricultural products delivery, actively helped agricultural productsupstream and industrial products downstream, consolidated and expanded the achievements of poverty alleviation, andhelped rural revitalization.

Help Agricultural Products UpstreamIn 2024, SF actively responded to national policies and joined hands with local governments to build regional agriculturalproduct brands. While opening up and building online sales channels for agricultural products, SF has achieved theunity of the company’s business development and social value. For key agricultural product projects, SF worked withlocal governments and associations to plan various product promotion activities, including but not limited to online/offline promotion meetings, harvest festivals, picking festivals, catching festivals, e-commerce festivals, exhibitions andother forms, and took multiple measures to improve the communication efficiency and promotion ability of agriculturalbrands. At present, the company has assisted in building more than 50 regional brands of agricultural products, and heldpromotion meetings and logistics solution conferences for fresh agricultural products such as Yangcheng Lake hairy crabs,Dandong strawberries, Xinjiang beef and mutton in the peak season to promote the development of agricultural industryand contribute to rural revitalization.The company adheres to the concept of “promoting agriculture with quality and empowering brand”, and realizes thetransformation of agriculture from “increasing production” to “improving quality” through three processes: increasing value,building brand and setting standards. For example, after six years of regional brand building in conjunction with Xianju County,the company has turned bayberry into the endorsement product of Xianju. Hand in hand with Suzhou City for 17 years,Yangcheng Lake hairy crabs have become a national famous brand, and the output scale has increased from about 3,000tons to 10,000 tons per year. At the same time, the company continues to strengthen the research on carton packaging,starting from the four dimensions of “fresh-keeping function”, “recognizability”, “cultural attributes” and “green environmentalprotection”, and provides 16 fresh food projects such as matsutake, strawberries, beef and mutton, poultry and fish, and22 room-temperature projects such as tea, flowers and seedlings, oranges, etc., creating more than 40 exclusive cartonpackaging, and continuously improving the market competitiveness of regional characteristic agricultural products. Thecompany’s service network to help agricultural products rise has covered more than 2,800 county-level cities across thecountry, serving a total of more than 5,500 fresh varieties. In 2024, SF delivered approximately 6.3 million tons of specialtyagricultural products. It is expected to help farmers generate more than RMB100 billion in income and drive local agriculturaltransformation and upgrading and farmers’ income increase and wealth.

Yantai Cherries Go Global: SF Express Delivers Fresh ChineseFlavors Worldwide

In April 2024, the first batch of Yantai cherries departed from Yantai and delivered to Singaporean consumerswithin 48 hours via SF. This is the first time that Yantai Cherry has been delivered to overseas countries byexpress delivery, so that global consumers can feel the delicious experience of “real-time freshness “ throughexpress delivery.SF works closely with local fruit farmers, cooperatives and relevantgovernment departments in Yantai to optimize and upgrade cherryplanting, harvesting, packaging, transportation and other links in anall-round way, so as to ensure that every Yantai cherry going to theinternational market carries the excellent quality of “China’s fresh fruitbusiness card”. In order to ensure the freshness and quality of cherriesduring transportation, SF has developed a new modified atmospherefresh-keeping box as packaging material, which does not require pre-cooling treatment and will not produce any peculiar smell during thefresh-keeping process. This crisper can keep cherries fresh for up to 60hours, providing a longer appreciation period, so that consumers canenjoy fresher and more delicious cherries.Yantai cherry “going global” is not only a successful example ofinternational trade of agricultural products, but also an important practicefor SF to help transform and upgrade local characteristic industries andpromote the implementation of rural revitalization strategy. The wholesupply chain solution provided by SF not only solves the problems ofshort shelf life and difficult transportation of cherries, but also increasesthe income of fruit farmers through stable export channels. At the sametime, cherry export business has driven the development of packagingmaterials, cold chain logistics, e-commerce services and other relatedindustries, creating new economic growth points for Yantai.

SF helps Yantai Big Cherry enter the

international market

As of the end of 2024, SF’s agricultural supply network spans over 2,800 county-level cities nationwide,covering over5,500 fresh product varieties. In 2024, it transported approximately 6.3 million tons of specialtyagricultural products, projected to generate

over RMB100 billion rural income.

West Guangdong seafoodHainan mangoWest Guangdong longanWest Guangdong lychee

Dried fruits in XinjiangXinjiang fresh fruitsXinjiang medicinal herbs

Tibetan cordyceps sinensis

Shaanxi fresh datesShaanxi kiwifruitGansu wolfberryGansu applesGansu beef and muttonQinghai Golmud wolfberry

Inner Mongolia beef and muttonBeijing juicy peachNingxia beef and muttonNingxia wolfberryNingxia fresh dates

Shanxi appleSichuan orangeSichuan pomegranateSichuan cordyceps sinensisYunnan matsutake mushroomsYunnan coffee

Guangxi dragon fruitGuangxi orange

Hubei orange

Xianju waxberryFuzhou teaQuanzhou teaXiamen seafoodDongguan durianEast Guangdong pomeloSouth Jiangxi orange

Chagan Lake ?shJilin ginsengDonggang strawberryDalian cherryYantai cherryRushan oysterYangshan peachHubei cray?sh

Anhui teaAnhui herbal medicine

Hairy crab (nationwide)

In October 2024, the first Golden Autumn North Jiangsu AgriculturalProducts Upward Promotion Conference of “Premium AgriculturalProducts, SF Fresh Delivery” was successfully held. The activityaims to aggregate various resources, broaden the “online + offline”sales channels of agricultural products, and build an integratedsupply chain service system of “planting-production-supply-sales-transportation-management” through SF’s strong logistics network andtechnological empowerment, so as to help upgrade the agriculturalproducts industrial belt in northern Jiangsu and promote high-qualityagricultural products to a broader market.In order to help upgrade and transform the agricultural productsindustry belt, SF, in conjunction with government and enterprisecounterparts, helps regional brands open up more circulation channelsby connecting agricultural products channel distributors, sellers, MCNorganizations and online celebrity live broadcast experts. With thehelp of marketing methods such as short video and live broadcast,blueberries in northern Jiangsu have gained higher exposure and opened up sales through live broadcast resources.In terms of production and marketing docking, SF relies on its own superior resources to carry out “agriculturalproducts-supermarket” docking, “agricultural products-wholesale market” docking and direct sales activities ofagricultural products for agricultural products, and continuously broadens the sales channels of regional agriculturalproducts.The successful holding of “Golden Autumn Upstream Agricultural Products Promotion” in Northern Jiangsu notonly promoted the close cooperation between agricultural products production enterprises and sellers in northernJiangsu, but also provided new impetus and opportunities for the upgrading of agricultural products industrial belt.

SF Successfully Held the First “Golden Autumn UpstreamAgricultural Products Promotion” in Northern Jiangsu

The launching ceremony of the first“Golden Autumn Upstream Agricultural ProductsPromotion” in Northern Jiangsu

SF innovates the model of “regional characteristic premiumproducts + live e-commerce + modern logistics”, superimposes thesynergistic effect of “1 +1 +1 > 3”, and helps the branding and salesincrease of agricultural products. Relying on its own platform andexternal resources, the company cooperates with the government,customer anchors and local fruit farmers to carry out live broadcastactivities. With the help of brand influence and Internet celebrities,it promotes live broadcast in producing areas and broadens theproduction and sales channels of agricultural products.In December 2024, SF joined hands with “Hui” to hold a special livebroadcast of navel oranges in Fengjie, Chongqing. By demonstratingnavel orange planting skills, tasting navel oranges and experiencingthe fun of picking, more than 600,000 orders of navel oranges(about 3 + million kilograms) were sold within two hours, exploringa replicable and promotable cooperation mode of “fresh origin + live broadcast e-commerce + Internet logistics”.Combining the historical flow and experience, SF reserved the trunk capacity of Jiangsu, Shandong and Anhui inadvance for the Fengjie navel orange live broadcast, and arranged for on-site support by more than 30 couriersto ensure that more than 70,000 ticket orders were issued on the same day and delivered to consumers within 24to 72 hours.

“Live Broadcast + Logistics” Empowers Agricultural ProductsProduction and Marketing Upgrades

SF escorts Fengjie navel orange delivery

Deeply Cultivate Rural LogisticsSF continues to deepen the rural delivery business, constantly improves the construction of the logistics system at thecounty, township and village levels, helps agricultural products upstream and industrial products downstream, and bettermeets the express delivery needs of agriculture, rural areas and farmers.In 2024, the company increased investment and support for the construction of rural terminal networks, actively promotedthe development of the rural logistics industry, and provided positive support and contribution to the realization of the ruralrevitalization strategy. Initiatives include:

After the construction of rural terminal networks in 2024, more than 100,000 village-level co-distribution station cooperationpoints were developed on the basis of more than 30,000 outlets in the entire network. A relatively complete rural expressdelivery network has been formed, allowing farmers to enjoy more convenient express delivery services in the village.

Encrypt

ruralterminalchannels

Optimizeexpresstransitmode

Improve the

quality ofemployees

Standardizeterminalpost stationconstruction

Provide more convenientand people-friendlyservices in rural areas,and provide diversifiedservices such as door-to-door, self-pickup,and delivery to villagesin rural areas throughvarious modes such asself-operated outlets,township agents, andservice stations

Carry out regionaldistribution in countytowns, reduce expressloading and unloadingand transit links, reduceexpress damage,and improve deliverytimeliness.

Carry out strict pre-job training and skillsclearance, and regularlyconduct professionalskills upgrading trainingfor employees to provideusers with professionaland warm services.

Build a standardizedservice image of terminalpost stations, unify the VIimage and indoor layoutof terminal post stations,configure receptionareas, and enhance thesending and pickingexperience of ruralelderly people.

As of the end of the Reporting Period, SF had over 100,000 village-level post station cooperationpoints, and the county-level coverage of network services was

98.9%, 95.1% at the township level,

and the village-level coverage was

96.8%.

2024 Project Achievements

● Funding scale: 3,851 new students were funded in 39 project counties, and 11,719 high school

students were funded in 66 cooperative project high schools throughout the year, and more than RMB 25million of grants was issued. Awarded 2,033 college students and awarded scholarships of RMB 6.34million.

● Cumulative achievements: As of the end of December 2024, the project has covered 67 counties (cities, districts)

in 18 provinces (autonomous regions’ municipalities) across the country, funded a total of41,918 studentsin need, and distributed scholarships and grants of RMB260 million.In 2024, the SF Lotus Education Aid Feedback Empowerment Center was officially opened to provide convenient andefficient learning services for feedback students. The empowerment center integrates the functions of course registration,community participation, course evaluation, learning duration recording and learning certificate issuance, etc., whichstimulates the learning enthusiasm of students and achieves remarkable empowerment effect. The curriculum systemcovers live classes, recorded classes and offline classes to meet diverse learning needs.

In addition, SF Lotus Education Aid Program provides interesting and meaningful practical experiences for feedbackstudents by carrying out a variety of public welfare activities, helping them grow, become aware of themselves andestablish faith in the activities.

Public Welfare and CharitySF is well aware that enterprises and society are closely related, and never forgets its original aspirations, continues todevote itself to public welfare undertakings and actively fulfills its social responsibilities. Since the establishment of thepublic welfare foundation in 2012, the company has been committed to carrying out a variety of social welfare projects andvolunteer service activities in various fields such as medical care, education, and environmental protection, and activelygiving back to the society with every action.Educational Charity

SF Lotus Education Aid Program

Since its launch in 2012, SF Lotus Education Aid Program has helped students in need to successfully completetheir studies through systematic application process, in-depth family visits, continuous financial support and all-roundcompanionship and counseling, cultivated them to become outstanding youth with excellent character and rich inner world,helped them adapt to social development and actively give back to society and hometown.

In 2024, SF Lotus Education Aid Program conducted 27 empowerment courses, with a total of 4,040participants.

In 2024, the SF Lotus Education Aid Program carried out a total of

public welfare and community activities,attracting more than1,800

feedback students to participate, and the cumulative number of beneficiariesreached7,398.

In 2024, SF Foundation and Shenzhen University jointly hosted the 9th Growth Summer Camp, providing SFLotus Education Aid Program students with rich experiences and in-depth learning and exchange opportunities,and feeling the academic and cultural atmosphere of first-class universities. The event was held from July 27 toAugust 3, 2024, attracting 300 high school students and 62 teachers from 38 counties of the SF Lotus EducationAid Program to participate. 47 college student volunteers from the feedback program provided full volunteer servicesto help students grow in practice and gain in communication.

Summer Growth, Camp Life

Fun sports meeting at the event site of the 9th Growth Summer Camp

Campers have business experience at SF cold storage

SF Liangshan Charity Class Program

SF Liangshan Charity Class Program is a welfare public program cooperated by SF foundation and Liangshan YiAutonomous Prefecture Mawei Development Center (the former Liangshan Yi Women and Children Development Center).It aims to provide warmth and hope for Liangshan dependent children (children who have lost their fathers or mothers andhave nothing to rely on in their lives) and female high school students in poverty. The program is committed to improvingthe living conditions of dependent children in Liangshan, supporting female high school students in difficult circumstances tocomplete their education, and providing them with equal access to educational opportunities and resources. The program iscommitted to improving their living conditions, supporting female high school students in need to complete their education,providing them with equal access to education and enjoying equal educational resources.

Medical AssistanceSF Care – Children Medical Assistance Program (“SF Care” for short) is committed to providing support for children aged0-18 suffering from related diseases and difficulties, allowing children to be detected, treated and recovered early, in termsof medical assistance and humanistic care. Help children grow up physically and mentally, and at the same time build aserious illness relief network for children mainly based on hospitals in central and western provinces. Promote “seriousillness does not leave the province” and the development of children’s medical industry.As of the end of 2024, SF Care Program has invested a total of RMB 481 million to help 24,259 seriously ill children andorphans in distress, and provide humanistic care services to 40,806 children, families and medical staffs.

2024 Project Achievements●Scale of funding: Throughout the year, a total of 234 students in distress were funded in 4 classes, 25Love Classes were established, and1,410 children and girls in distress were funded in Liangshan.● Activities: Organize Beijing winter camp study tour and summer camp activities to enrich students’ holiday life.

2024 Project Achievements●Rescue scale: 2,881 children and orphans with serious illnesses in distress were newly rescued, of

which2,198 children with congenital heart diseases, hematological diseases and malignant tumors

were rescued by 15 self-operated designated hospitals, an increase of3% compared with 2023;

●Humanistic care: Throughout the year, it provided humanistic care services such as heart-warming care,

growth companionship and medical support, covering5,003 children, parents and medical staff, and

distributed1,376 heart-warming energy packages.

In 2024, SF Care helped cooperative hospitals to carry out disease screening, rescue and follow-up work on thefront line through a combination of “joint hospitals to carry out congenital heart disease screening” and “supportinghospitals to establish green channels”, and promote the “early detection, early treatment, and early recovery” ofchildren in distress, while promoting the construction and development of hospital-related disciplines.? Joint hospitals to carry out congenital heart disease screening: In 2024, SF Care and Shenzhen Hospital ofthe University of Hong Kong carried out the “SF Care – Children’s Congenital Heart Disease Screening andRescue Health Tour” project in Chayu, Xizang and Longsheng, Guangxi, screening a total of 1,164 children,established a long-term sustainable green rescue channel, helped project sites gradually realize the “dynamicclearing” of children with congenital heart disease.? Support hospitals to establish green channels: SF warmly supports Henan Chest Hospital to carry out the “2024Children’s Congenital Heart Disease Screening and Rescue Project in Kashgar, Xinjiang” and Wuhan AsianHeart Hospital to carry out the “2024 Children’s Day Love Tour Project” to open up the “SF Care Rescue GreenChannel”, a total of 116 children with congenital heart disease were funded to successfully complete treatmentand regain their healthy hearts.

Children’s Congenital Heart Disease Screening and RescueHealth Tour

Children’s Congenital Heart Disease Screening and Rescue

Health Tour in Chayu, Xizang

Children’s Congenital Heart Disease Screening and Rescue

Health Tour in Longsheng, Guangxi

Children’s Day Love Tour in Yaxi, QinghaiChildren’s Congenital Heart Disease Screening and Rescue

Health Tour in Kashgar, Xinjiang

Emergency Response and Disaster RescueIn the face of emergencies and natural disasters, SF has always regarded serving the society and safeguarding people’slivelihood as its own responsibility, actively participated in social disaster relief and emergency public welfare projects,mobilized emergency resources of the entire network to support disaster relief as soon as possible, and relied on its ownresource advantages and efficient organization and deployment capabilities to continue to contribute due efforts to protectlife and social security.In 2024, SF provided emergency assistance to typhoon relief in Hainan and earthquake relief in Xizang. Relying on itsadvantages in transportation resources, SF urgently transported relief materials to disaster areas for public welfare, anddonated materials and funds for the reconstruction of disaster areas. The company continues to pay attention to the disastersituation, dynamically dispatches rescue forces, and provides assistance and support for post-disaster reconstruction.

In 2024, the SF Care Project join forces with 9 cooperative hospitalsto jointly carry out “Heart-warming Companion, Enjoy Children’s Day”and “Heart-warming Companion, Celebrate National Day” throughthe “Humanistic Care Quarterly Theme Activities + Multi-departmentLinkage of Project Cooperative Hospitals”. The two themed activitiesprovided heart-warming care services to 588 children and parentsin the hospital and shared the happy holiday hours. The activity notonly promoted the goal of wide coverage of humanistic care, but alsoprovided strong support for the work of cooperative hospitals in thefield of humanistic care for children, further enhancing the treatmentexperience and rehabilitation confidence of children.

Heart-Warming Care Activity: Sharing Happy Hours with Children

Heart-warming Companion, Celebrate

National Day

In 2024, SF launched the social good emergency public welfare project, taking the lead in deploying AED equipmentat 100 outlets in Shenzhen, allowing first aid equipment to enter the community and be close to residents, andimproving SF’s emergency response capabilities in emergencies. This action not only demonstrates the leadingand exemplary role of the industry, but also comprehensively improves SF’s volunteer service level and builds awide-ranging life protection network.

Deploying AED Equipment at Outlets to Improve EmergencyResponse Capabilities

SF courier AED certification training site

On January 7, 2025, a 6.8-magnitude earthquake occurred in TingriCounty, Shigatse City, Xizang. SF quickly activated the emergencyresponse mechanism, gave full play to the advantages of aviationnetwork, quickly completed the route filing and approval, deployedB757-200 all-cargo plane and experienced flight and ground crew,and sent two flights from Chengdu and Kunming on the afternoon ofJanuary 8th to transport about 6 tons of first aid supplies to Lhasa. Onthe morning of January 9, SF opened two freight routes, “Wuxi-Lhasa”and “Shijiazhuang-Lhasa”, transporting about 11,200 pieces and nearly42 tons of relief supplies, including warm clothing, quilts, blankets, foodand tools and equipment. After the goods arrived in Lhasa, they werequickly transported to Shigatse through the ground trunk line, providingsolid support for post-disaster reconstruction and logistics support inthe disaster area.

SF All-Cargo Plane Rushed to Xizang for Earthquake Relief

SF helps Shigatse earthquake relief

In September 2024, super typhoon “Capricorn” made landfall along the coast of Wenchang, Hainan and Xuwen,Guangdong, and sailing in the Qiongzhou Strait was suspended. In order to further ensure the transportation of people’slivelihood materials and fully ensure the supply of people’s livelihood materials, SF urgently coordinated all-cargo planeresources and invested in “Vegetable Charter Flight” to ensure the supplyof vegetables in Sanya. On September 7th, two all-cargo planes landed inSanya carrying 85 tons of vegetables. From the evening of the 7th to the8th, SF Airlines flew a total of 10 dedicated flights to focus on ensuringthe transportation of people’s livelihood materials in Hainan.In addition to the investment of all-cargo aircraft, SF also undertakesthe sorting, transportation and supply guarantee of Sanya’s “VegetableBasket” project. In order to ensure the smooth circulation of “VegetableBasket” products during the typhoon, the company worked closely withSanya “Vegetable Basket” to optimize the distribution system, increasedthe number of transportation vehicles and personnel, and ensured thatvegetables can be delivered to designated stations in a timely and safemanner. In the four days from September 5th to September 8th alone, SFguaranteed a total supply of more than 70,000 kg of vegetables.During the fight against the typhoon, SF also completed the relevantsupport tasks of Hainan Provincial Emergency Management Department,transporting more than 3,000 sets of warm quilts to Wenchang City, 500sets of warm quilts to Lingshui City, and urgently allocating more than3,000 life jackets. Through a series of measures, SF ensured the safetransportation of people’s livelihood materials, provided a solid guaranteefor the life of Hainan residents during the typhoon, and demonstrated thecorporate social responsibility and responsibility.

SF “Vegetable Charter Flight” Rushes to Hainan Urgently

SF guarantees transportation ofpeople’s livelihood materials in Hainan

Services

Pioneering Intelligent Logistics Innovation Empowering Enterprises Expanding Overseas Delivering Premium Services Securing Safety Delivery Driving Industry Synergy and Shared Progress

A new round of technological revolution is reshaping the ecology of thelogistics industry with unprecedented depth and breadth. Cutting-edgetechnologies such as big data and the Internet of Things break throughthe boundaries of traditional models, giving birth to efcient, agile, greenand intelligent new logistics productivity. SF anchors the commandingheights of technology with a forward-looking layout, continues todeepen core areas such as large model, unmanned technology, and bigdata, and builds a digital intelligent operation system throughout allstages of “collection, transit, transportation, and delivery” to drive leap-forward improvement in service efciency and customer experience. Atthe same time, SF accelerates its international layout, improves cross-border logistics infrastructure, provides end-to-end solutions for Chinesebrands to go global, and facilitates efcient collaboration of global supplychains.

Empowering New-Quality ProductivityThrough Digital Intelligence

123122SF Holding 2024 Sustainability ReportAbout SFAppendicesSustainability ManagementGovernanceEnvironmentSocialServices

Pioneering Intelligent Logistics InnovationSF is committed to building an intelligent supply chain ecosystem in the digital era and aims to become the leader in theintelligent supply chain sector. By leveraging deep insights into supply chain scenarios and extensive experience servingtop-tier industry clients, along with continuous exploration and application of cutting-edge technologies, the Companyenhances the efficiency of its internal logistics network while providing customers with best-in-class digitalized logisticsand supply chain solutions.The Company attaches great importance to innovative research and development, continues to improve the innovationmanagement mechanism, promotes innovation from idea to implementation, and forms a closed loop of the whole processfrom innovation cultivation, innovation generation, innovation implementation to innovation value by building an onlineinnovation platform and organizing offline innovation activities.

In 2024, the Company participated in and was shortlisted for the 2025 top six global finals of the Franz Edelman Award,the highest award in operations research and management science. Besides, SF was nominated in the first batch of casesto build a digital China collected by the National Data Administration and excellent cases of IDC Future Enterprise Awardsin China, and won honorary awards such as the 2024 Science and Technology Award of China Federation of Logistics&Purchasing (CFLP).

In 2024, investment in science and technology R&D amounted to RMB3.09 billion.At the end of the reporting period, SF had4,180 patents in force or pending, and invention patents accountedfor

61.5% of the total patents.

In 2024, SF utilized783 invention patents in its core business operations, filed 263 new invention patent

applications, and received314 invention patent grants.

SF Intelligent Solutions for Logistics Network Planning was successfully shortlisted for the 2025 Franz Erdmann Award(known as the “Nobel Prize” in industrial engineering), the only Chinese representative in the final stage of the award. Asa core component of SF Super Brain, the project focuses on solving complex problems in the planning of ultra-large-scalelogistics networks, and effectively responds to the multiple challenges of aviation, land transportation and urban internallogistics networks through innovative models.At present, the smart solution has been fully implemented in SF, planning and optimizing more than 8,000 routes and morethan 200 sites on average every day, improving the timeliness of more than one billion packages, significantly improvingoperational efficiency, reducing resource waste and carbon emissions, demonstrating SF’s global leading strength in thefield of logistics technology.

SF Intelligent Solutions for Logistics Network Planning wasshortlisted for the Franz Edelman Award

SF Intelligent Solutions for Logistics Network Planning listed on the o?cial website of INFORMS

Honorary Awards

SF Technology has been recognized as a

high-tech enterprise.

SF won the 2024 Outstanding Organization

Award in the Express Industry InnovationCompetition issued by the State Post Bureau of

the People’s Republic of China

SF Technology’s Smart Supply Chain Control Tower forEnhancing Customer Experience Project:

Won the 2024 Future Customer Experience Leaderof IDC Future Enterprise Awards in ChinaFenghe Sustainability Platform:

Selected as the Green Logistics ESG Practice Pioneerin China in 2023-2024 Selected as the IDC Sustainability Spotlight in 2024Won the 2024 LOG Outstanding Contribution Awardfor Low-carbon Supply Chain & Logistics in China“Fengjun Cloud Mirror”, a cargo airport digital twinsproject:

Nominated in the first batch of 50 cases to build adigital ChinaWon the 2024 Science and Technology Award ofChina Federation of Logistics& Purchasing (CFLP)The strategy optimization project of small pieces area oftransit site based on digital twins:

Won the 2024 Science and Technology Award of

China Federation of Logistics& Purchasing (CFLP)

SF Intelligent Solutions for Logistics Network Planning:

Shortlisted for the 2025 global finals of the Franz

Edelman AwardWon the 2024 Digital Innovation Special Award of

IDC Future Enterprise Awards in China

Innovation Mechanism of SF

Innovation

process

Innovationcultivation

Innovationgeneration

Innovationimplementation

Innovation

Value

InnovationWorkshop

Innovation research centerInnovation lab

Introducing innovativethinking and tools,developing creativeskills, stimulatingcreative thinking, andmastering creativetools or methods.

Conduct team brainstorming and output innovative

solutions for business or technical scenarios painand difficulty points.Showcasing innovative tools, methods and

technical works that are small but effective in theworkplace.

Stimulate the reuse

value of innovationto reduce costs andincrease efficiency forthe company.

Operationmechanism

Driven by Large Model to Reconstruct Logistics Decision-Making andOperation SystemSF has developed logistics decision-making models and large language models, tailored to the logistics and supply chain industry.These innovations significantly enhance supply chain decision-making and daily operational efficiency, accelerating the industry’stransition to intelligent logistics.SF Logistics Decision-Making Large Model

Leveraging years of industry expertise and underlying data, the Company’s AI-driven logistics decision-making model overcomestraditional algorithm limitations, significantly enhancing intelligent decision-making in logistics. This model has been successfullyimplemented in several industries such as cosmetics, 3C, food, and automotive parts.

Unmanned Empowerment: Reshaping Logistics InfrastructureThe Company has extensively explored and implemented automation and unmanned technology across various logisticsscenarios, driving transformation in operational models and enhancing network efficiency.

Unmanned Vehicles

Unmanned Warehouses

Through the transformation of transit model, the Company utilizedAGV equipment for short-distance automated handling and sortingoperations at the sorting centers. The Company’s self-developedXinghe Dispatch Management Platform has been integrated into over60 large SF sorting centers, managing nearly a thousand AGVs andcompleting over 5.2 million automated container transits.

The Company deployed over 800 customized unmanned vehicles forshort-haul transportation between sorting centers and service outlets,the connection between service outlets and couriers’ collection anddelivery areas, and pickup and delivery within enclosed areas suchas industrial parks and campuses. This automation of short-haultransportation and collection and delivery has improved efficiency andreduced costs. By building a unified platform for unmanned vehicleintegration and simplifying loading and unloading operations, theCompany effectively reduced the operational costs for future newscenarios and vehicle types.

The Company has developed automated warehousing systems thatintegrate robotic storage and retrieval solutions, offering customizedend-to-end automation for various industries. For example, for thecosmetics industry, where SKU complexity, small item handling,and expiration management are critical, the Company’s automatedwarehouses feature high-density storage solutions that optimizespace and labor efficiency. These facilities include shuttle-basedwarehousing systems for accurate pallet and item-level handling,AGVs, lifting mechanisms, and sorting machines, ensuring seamlessinventory control and the ability to process over 100,000 daily outboundorders. The system is already implemented in pharmaceuticals, high-tech, home appliances, and other industries.

SF Large Language Model and Multi-modal ModelSF’s proprietary large language model and multi-modal model are widely applied across over 20 business scenarios, includingcustoms clearance, customer service, pickup and delivery, and marketing, empowering employees with industry knowledge andimproving operational efficiency while delivering superior customer experiences.

The Company will continue to explore the application of large model technology in logistics services across more industriesand scenarios, driving the intelligent transformation and upgrades of the logistics and supply chain industry.

In sorting process, the AI-driven smartsecurity screening system, combined withfull-chain monitoring, automatically detectsrisks and ensures parcel security. In pickupand delivery operations, AI-powered digitalassistants provide real-time training and Q&Asupport to new couriers, enabling them toquickly learn parcel handling standards andproduct information. The system achieves a99% accuracy rate in understanding inquiries.

During the order placement process, thelarge language model automatically analyzescustoms regulations from multiple countries,ensuring precise clearance procedures.During document verification, the modelautomatically reviews shipment details,achieving a 97% auto-review rate at selectedcustoms ports. In customs inspection, themulti-modal AI model analyzes productimages and determines clearance eligibility,achieving an 83% human-machine match rate,significantly improving customs clearanceefficiency.

In the parcel ordering process, customerscan complete orders using a single voicecommand. In return logistics, users canupload a product image to automaticallygenerate a return request, with the largelanguage model extracting order details injust nine seconds. In customer service, AI-powered assistants extract key informationfrom conversations and generate real-timesummaries, reducing customer serviceresponse time by 30%.

Operational optimizationCustoms clearance optimizationEnhancing customer experience

Main Applications of SF Large Language Model And Multi-modal Model in Business Operation Scenarios

Main Applications of SF Logistics Decision-making Large Model in Supply Chain Management

By integrating multi-modal AI technology, the model extracts deep insights from product images and textual information, buildingmulti-scale, multi-channel forecasting models that improve prediction accuracy while reducing resource consumption. In onecase study, the model reduced server resource usage by 80%, increased computational efficiency by 120 times, and improvedprediction accuracy by 5%.The decision-making large model significantly improved computational efficiency in supply chain route planning and packingoptimization. For example, in terms of transportation route optimization, the model can quickly respond to complex scenariosinvolving inbound logistics, store delivery, and short-haul network planning, eliminating tedious customized development processesand responding flexibly to business requirements.By building an intelligent supply chain system and combining professional algorithms and operational data analysis, the Companyprovided accurate supply chain solutions. For instance, in addressing out-of-stock scenarios, the AI model identifies root causesand suggests corrective actions to help customers respond to market fluctuations efficiently, enhancing decision-making speedand accuracy.

Volume demand forecasting

Decision optimization

Operational analysis

Unmanned Sorting Centers

Digital Intelligence Penetration: Full-Scenario Empowerment and UpgradeDeep Application of RPARPA (Robotic Process Automation) technology simulates humanoperations to automate repetitive and rule-based businessprocesses across logistics operations, significantly improvingefficiency and optimizing workflows. The Company extensivelyutilized RPA robots, covering various stages of collection,sorting, transportation, and delivery, to improve operationalefficiency and optimize business processes. This technologyassisted employees in automatically generating daily, weekly,and monthly reports, reducing the burden of repetitive reportpreparation. It also helped employees monitor performancemetrics such as timeliness and delivery efficiency, providingdata for analysis and reporting. Currently, these robots aredeployed at the Company’s various scenarios such as sorting centers and service outlets. In customer-facing processes,RPA applications expanded self-service capabilities for customers, significantly improving response timeliness. In thedelivery process, the Company utilized RPA robots to automatically monitor the status of parcels at different time periodsand promptly remind couriers at each stage, enhancing on-time delivery rates and overall customer service quality.

Smart Supply Chain: Creating An Industry Transformation EngineSF provides comprehensive digital supply chain solutions for top-tier industry clients across high-end manufacturing,cosmetics, auto parts, home appliances, and consumer goods industries. The company has successfully developedhundreds of industry use cases, empowering over 4,000 customers with smart supply chain management.

SF ╳ Energy Industry

SF ╳ New Energy Vehicle Industry

SF ╳ Consumer Goods Industry

Intelligent Logistics Products

For small and medium-sized customers, the Company utilized light-version SaaS products to enhance the value-addedservices in various aspects of its express delivery and logistics services. The Company has successfully deployed dozensof technology-powered SaaS products, enabling SMEs to streamline supply chain operations, reduce costs, and optimizelast-mile delivery performance.Confirmation Scenario

For B-end customers in the financial and insurance industriessuch as accounting firms, banks, securities, etc. and confirmationdocument customers, focusing on the sending, receiving, signingand centralized operation processing of confirmation documents,the products conduct full-process management and adopt automatedprocessing solutions combining business and technology, torealize the online, intensive and digital processing of confirmationdocuments, so as to achieve digital and intelligentupgrades of business with efficiency improvementand cost reduction, risk prevention and control, andcollaborative operation and management.

Liquor Industry

Regarding the issues of high value, fragility, cross-channel selling and counterfeits in the liquor industry,

a traceable anti-counterfeiting logistics and controlsystem has been built to help enterprises control the

information of store purchase, sales and storage,and reduce the loss due to cross-channel selling andcounterfeits. It has served more than 20 customers in

the liquor industry.

Pharmaceutical Industry

The products provide standardized pharmaceuticallogistics service digital system for hospitals,pharmaceutical e-commerce, Chinese medicine stores,etc., covering Chinese and western medicine, medicalrecords, physical examination reports and other categoriesfor delivery, ensuring the timeliness of drug delivery,and realizing the safety management of transportationenvironment. The products have cooperated with thousandsof hospitals to promote the digital upgrade of pharmaceuticallogistics.

Cultural and Tourism Industry

The products can provide passengers withintegrated baggage services, covering baggagedelivery, storage, check-in and packing, andprohibited and lost item management, etc. inmajor transportation hubs, making passengers’

travel more convenient and easier.

The Company cooperated with a top-tier condiment brand to build an all-channel intelligent order center, achievingintelligent distribution ordering and order processing. When distributors place orders, the system can automaticallyprovide ordering suggestions, improving the accuracy of dealer orders and increasing the sales of brand merchants. Theintelligent order center aggregates all-channel inventory information, providing real-time scheduling of available inventoryresources for each sales channel, achieving all-channel “one inventory” management. At the same time, it managesthe order fulfillment status of each channel, realizing automatic order review, allocation, and shipping, improving orderprocessing efficiency and customer experience. Currently, this solution has been replicated and promoted among multiplecustomers in the food industry.

The Company cooperated with a leading new energy vehicle brand to create an integrated after-sale solution for auto partscirculation that includes transportation, warehousing and distribution services, based on its self-developed supply chainsystem. By structured integration of express, FTL, LTL, and store delivery transportation modes, the Company improvedtransportation flexibility, and intelligently and dynamically distributed transportation resources based on the weight,volume, and flow direction of the shipments, reducing transportation costs. The Company also provided various efficientsystem access methods and, in conjunction with the transportation execution monitoring module, allowing customers totransparently control logistics performance quality. In addition, with years of experience in self-operated warehousingservices, the Company provided standard warehousing and distribution services for the customer’s own online store,ultimately forming a comprehensive supply chain technology solution from warehousing to distribution, which currentlyserves multiple well-known automobile companies.

The Company partnered with a well-known petrochemical company to provide an end-to-end data-driven supply chainsolution. The energy industry supply chain was characterized by high uncertainty and complex processes. Given thecustomer’s relatively independent business management and absence of data communication, the Company built a digitaland visualized logistics management platform that integrates marketing, warehousing, transportation, and settlementprocesses. This platform made the entire supply chain transparent, reducing information barriers and management costs. Inaddition, the energy industry often involves bulk commodity trading, and customers tend to use multimodal transportation.The Company intelligently identified rational delivery outlets, return vehicle routes, and orders with the same deliverydirection, while smartly dispatching resources such as vehicles and ships to reduce costs and improve transportationefficiency. In terms of warehousing, the Company accurately analyzed inventory level and outputs logistics demand plansto help the company improve its level of intelligent management.

Main ServiceScenarios ofSF’s SaaSProducts

Industry-research Collaboration: Jointly Building an Open InnovationEcosystemThe Company adheres to the concept of openness and win-win cooperation, closely collaborates with partners such asscientific research institutes and universities, and jointly promotes the innovative application of cutting-edge technologiessuch as digital twins, blockchain, and operations research optimization in the logistics field. It injects new impetus into thetransformation and upgrading of China’s logistics industry and jointly opens a new chapter in smart logistics.Against the backdrop of the transformation of the logistics supply chain from resource-driven to technology-driven,the Company, as a pioneer in the industry, takes the lead in carrying out school-enterprise cooperation in the fieldof unmanned logistics. By implementing a production-practical unmanned logistics system on campus, it not onlyoptimized campus logistics services and enriched the scenarios of smart campus management but also providedhigh-quality teaching resources and practical platforms for universities, effectively improving students’ practicalabilities.At present, the Company has formed mature industry-education integration solutions in many fields such as unmannedlogistics, supply chain optimization, supply chain execution, smart warehousing laboratory, and live e-commerce supplychain, providing continuous impetus to industry innovation and development.

Industrial upgradingIn 2024, SF Technology completed the construction of a special project on blockchain and fintech in the key R&Dareas of Guangdong Province in cooperation with Xidian University and the Zhuhai Innovation Research Instituteof Fudan University. The project is based on domestic open-source alliance chain and domestic basic software andhardware, combined with blockchain technology and domestic passwords, to create an independent and controllablesupply chain management service platform and build blockchain underlying solutions and industrial ecology.Scientific research projectsSF Technology, in close cooperation with academic institutions such as Southeast University, the ShenzhenResearch Institute of Southeast University, and the Shenzhen Institute of Artificial Intelligence and Robotics,undertook a major scientific and technological special project (in the field of robotics technology) of Shenzhenin 2024 with upstream and downstream enterprises in the industrial chain. This project explores the adaptability,execution efficiency and application capabilities of intelligent robots in logistics scenarios, and drives the futuredevelopment and innovation evolution of intelligent logistics with technological innovation.

SF Technology Postdoctoral Research StationSince its establishment in 2022, SF Technology Postdoctoral Research Station has actively absorbed and cultivatedhigh-tech talents and promoted the deep integration of industry, academia and research. It has established a jointtraining mechanism with top universities such as Zhejiang University, the Shenzhen Research Institute of TsinghuaUniversity, and Harbin Institute of Technology to accelerate the process of industry-university-research integrationin the fields of digital twins, operational research optimization, and supply chain optimization. In 2024, there were4 postdoctoral researchers at SF Technology Postdoctoral Research Station, committed to researching key coretechnologies in the logistics field and continuously improving the Company’s technological capabilities and corecompetitiveness.

Innovation Through Industry-University-Research Cooperation

Ethical Commitment to Science and TechnologySF is committed to strictly observing the following principles in the development and application of the technology:

Science and Technology for Good: Building a Strong Defense Line forScience and Technology Ethics

The Company always upholds a responsible attitude. In pursuit of technological innovation and efficiency improvement, itputs data security, privacy protection and technological ethics at the core of technological innovation management. As theCompany’s independent research and development technology level becomes increasingly sophisticated, the Companyhas simultaneously strengthened its compliance management system for the development and application of large modelsto ensure that technological development always follows the principles of science, rationality and respect.Compliance Management System

The Company strictly follows laws and regulations and deeply integrates compliance requirements into R&D processes.In 2024, the Company reported zero incidents violating tech ethics or regulatory standards.

Model training stage:

Conduct strict securityassessment on the inputdata to ensure legalcompliance and eliminateillegal or harmful content;

Evaluation and testingprocess:

Use independent testdata sets to verify theperformance and safetycapabilities of the model;

Application monitoringstage:

Implement a keyworddetection mechanism toensure that the applicationfollows the principles ofscience, reasonability andrespect, and effectivelyavoid the spread of false orharmful information.

Compliance training:

Conduct scientific and technologicalethics compliance training for productand R&D personnel, deeply analyzethe current compliance statusof relevant industries in China,systematically interpret relevant lawsand regulations, and emphasizespecific requirements for productdevelopment and safety compliance.

Principle 1Principle 1Protecting Data Protecting DataPrivacyPrivacy

Principle 2Principle 2System Security System SecurityAssuranceAssurance

Principle 3Principle 3Bias BiasMitigationMitigation

Principle 4Principle 4Content TraceabilityContent Traceability

Minimize data collection,apply de-identification,anonymization, andencryption to safeguarduser privacy.

Regularly carry out networksecurity vulnerabilitydetection and red-blueconfrontation drills, identifyand repair network securityvulnerabilities in a timelymanner, and ensure theintegrity and stability ofthe whole life cycle of thesystem.

Strictly control the dataselection, algorithm designand model optimizationprocesses, identify andeliminate bias risks throughsystematic evaluation andtesting to fairness andtransparency.

Develop and implementtrusted content traceabilityand verification methods(such as watermarkingtechnology) to helpusers identify accuratetechnology-generatedcontent and enhancecredibility and traceability.

Empowering Enterprises Expanding OverseasThe Company has capitalized on the growing trend of Chinese enterprises expanding their production capacity and brandsoverseas, deepens business integration, actively explores the supply chain and international market. It is committed tobecoming the preferred logistics partner for customers to go global, supporting the realization of the Company’s strategicgoal of being the only one in Asia and global coverage.In 2024, the Company continued to build efficient and reliable international supply chains for clients, achieved breakthroughsfrom 0 to 1 to scale across multiple countries, industries, and service scenarios. It secured contracts for over 100 overseassupply chain projects, with more than 50 successfully implemented. These projects serve leading clients across diversesectors, including e-commerce and circulation, industrial manufacturing, high-tech, apparel and footwear, home appliancesand furniture, automotive, and coffee and tea beverage chains. The services span key markets such as Singapore, Malaysia,Vietnam, Thailand, South Korea, Philippines, Netherlands, Germany, and France.

Production Capacity Going Overseas: Empowering theFuture of Green Travel with Smart Logistics

Additionally, leveraging its global network capabilities and comprehensive service strengths, SF has deepened multi-scenariocollaborations with leading e-commerce platforms while expanding partnerships with overseas independent websites andmerchant clients. This resulted in a 24% year-on-year increase in cross-border e-commerce clients. Notably, by enhancingits cross-border door-to-door next-day delivery fulfillment capacity on China-Southeast Asia routes, the Company nowprovides efficient cross-border B2C services to emerging platforms and brand clients, effectively addressing their historicalpain points such as lengthy fulfillment cycles, slow delivery times, and high damage rates. This has empowered clientsto rapidly penetrate Southeast Asia’s consumer markets. Simultaneously, to meet cross-border e-commerce demandstargeting Europe and the U.S., SF has accelerated the deployment of overseas warehouses. It offers clients a one-stopsolution combining first-mile consolidation and integrated overseas warehousing and distribution, while optimizing costefficiency to enhance service value and strengthen customer loyalty.Aligned with the Belt and Road Initiative and the “Express Delivery Globalization” strategy, the Company will continue toadvance the vision of “seamless global logistics,” driving the development of an interconnected, innovative, inclusive, smart,and green international supply chain system. Through broader, higher-standard, and deeper international collaboration,we aim to deliver greater achievements and serve a more expansive global market.

Leveraging its robust supply chain and logistics strengths, SF provided end-to-end solutions for Chinese consumerbrands expanding overseas, spanning from domestic operations to international markets. In 2024, SF developed acustomized solution from scratch for a renowned Chinese coffee brand, enabling the successful launch and stableoperation of over 50 stores in Singapore. Throughout the project, SF achieved a 100% emergency order fulfillmentrate, delivered T+0 turnaround for customs clearance and replenishment delivery, and maintained zero deliveryexceptions throughout the year. Drawing on its mature supply chain management expertise honed in China, SFhelped the brand to rapidly scale its global footprint.SF gave full play to its own advantages, replicated the domestic efficient supply chain operation mode to overseasmarkets, and continued to help Chinese brands deepen the international market.

Brands Going Overseas: Safeguarding the Path of ChineseBrands Going Global with Smart Supply Chains

The Company provided efficient air and ground transportation services for the export of raw materials and components in themultinational production supply chain of 3C electronic products. In the consumer goods sector, beyond its existing role in managingcross-border supply chains for 3C electronics, the Company capitalized on the growing trend of Chinese cultural IP brands expandinginternationally. It served a top-tier domestic designer toy brand with comprehensive international logistics solutions, including expressdelivery, cross-border ground transportation, and overseas warehousing. The services covered both online direct-to-consumerchannels and offline retail stores, facilitating the brand’s entry into the Southeast Asian market.

In the consumer goods sector

The Company has supported a number of emerging Chinese coffee and tea brands in their overseas expansion, including assistinga coffee brand client in the quick opening and operation of more than 50 stores in Singapore, and as the exclusive supply chainpartner of a tea brand client for overseas expansion, supporting it to open 110 stores in eight countries.In the coffee and tea industry

The company leveraged its extensive logistics network and integrated capabilities with KLN to successfully execute multiple overseasinfrastructure projects for Chinese enterprises. These projects spanned renewable energy sectors such as wind power, photovoltaics,and energy storage, showcasing the company’s leading expertise in complex cross-border logistics solutions.In the engineering logistics sector

The Company not only provided cross-border air and sea transportation services for new energy materials, batteries and high-end equipment, but also successfully undertook the integrated warehousing and distribution logistics services for overseas autospare parts of a leading automotive enterprise. This includes integrated supply chain services covering customs clearance ofauto spare parts, port-to warehouse transfer, warehousing and local store distribution.In the automotive industry

In the wave of new energy vehicles going overseas, the Company relied on its strong supply chain and technologicalcapabilities to help new energy vehicle companies enter the international market.With highly mature supply chain solutions for the automotive industry, the Company has built a logistics service architecturecovering the entire process of new energy auto parts transportation and vehicle shipping. Relying on the self-developed“Feng Zhi Cloud” digital platform, SF carried out refined management and control of transportation route planning,warehousing and deployment, greatly improving transportation efficiency, and effectively ensuring that new energy vehiclescan be delivered on time and with high quality.In response to the special needs of new energy vehicles in terms of battery transportation safety and timeliness ofafter-sales service, the Company has formulated a series of safety and compliance solutions. At the same time, SFworked closely with high-quality partners in the industry to build a reverse recycling network for used lithium batteriesand other parts, and actively promoted the sustainable development of the new energy vehicle industry in a green andlow-carbon direction.

Delivering Premium ServicesSF always adheres to a customer-oriented approach, constantly optimizes and upgrades its service product system, andmeets the diversified needs of customers in terms of timeliness, weight, frequency, distance, scenarios, and geographicallocation in an all-round and multi-angle manner. The company’s services have penetrated into various sectors, includingindustrial manufacturing, commercial distribution, agricultural products, food and pharmaceutical cold chains, internationaltrade, and local life. They cover all aspects of social production and people’s livelihoods, establishing a brand image thatis “fast”, “reliable”, and “premium services”. High-quality services have shaped an unparalleled brand value. Relying onits leading service quality and reputation, the company has accumulated a highly loyal and sticky customer base acrossvarious sub-industries. It has become the preferred logistics partner for many customers and is widely recognized bycustomers, the industry, and society.

In the rankings released by the State Post Bureau, SF has been ranked first in public

satisfactionwith express services for 15 consecutive years (2009-2023) and the first three quartersof 2024 as well.On August 5, 2024,Fortunereleased its 2024 Fortune Global 500 list, in which the Company ranked No. 415.This marks the third consecutive year that the Company has been included in the list, and it remainsthefirst and only Chinese private express delivery enterprise to achieve this milestone.

Ultimate Time-Definite Delivery Commitment

SF has redefined the standard for time-definite delivery in China, establishing the highest standard in the field with precisedelivery time commitments. The company offers high-frequency pick-up services, promising that couriers will arrive at thesender’s address within one hour after an order is placed. According to information released by the State Post Bureau, SF’stime-definite delivery service has recorded the shortest delivery time among all time-definite services in China since 2013.The company continues to refine the landscape of its time-definite service products, achieving ultimate performancein transportation timeliness whether it is within the same city, across cities, or across provinces. SF has developed amulti-tiered fast-delivery service capability, including “hourly delivery, half-day delivery, same-day delivery, and next-daydelivery,” to enhance its service network and product system from near-field to far-field. With a multi-product portfoliomodel, SF helps customers build an extremely efficient “circle of friends” for express delivery.

SF has integrated a multi-layered product and service matrix to form an integratedsolution suite. This suite is applicable to diverse scenarios, including freshproduce, beverages, pharmaceuticals, and even event support. Whether for B-endmerchants or C-end consumers, and regardless of the distance – whether withinthe same city, within the province, or across provinces – this comprehensiveapproach can press the “acceleration button” for transportation.SF has established a multi-tiered fast-fulfillment service system, including“half-day delivery, same-day delivery, and next-day delivery,” which providestailored and time-sensitive services for various types of commodities. This systemoptimizes logistics costs while enabling merchants to deliver goods to consumersmore quickly, effectively balancing logistics costs with transportation efficiencyand supporting the stable development of business and the economy.

In terms of cross-city delivery services,“SF Same-Day” Delivery has expanded tocover over 700 routes nationwide, enablingcross-city express delivery on the sameday. Long-distance transportation is a keycompetitive advantage for SF within theindustry. The company’s flagship product,“SF Express”, leverages its superioraviation capacity and transit efficiencyto offer next-morning delivery for long-distance shipments. This service is widelyutilized in various sectors, includingcommercial documents, cosmetics, and3C electronics.

In terms of same-city delivery services, the instantservice “SF Same-City Express Delivery” hasachieved the efficient service of “1-hour expressdelivery across the city” in over 300 cities. Thecompany’s “Same-City Half-Day Delivery” service,which guarantees delivery within an average of 4-6hours for both intra-city and cross-city shipmentswithin economic circles, has expanded to 291 citiesnationwide. In 2024, SF will continue to deepenits time-definite service network, further extendingits “Same-City Half-Day Delivery” service to keyurban agglomerations such as the Yangtze RiverDelta and the Pearl River Delta, supporting thedevelopment of “Greater Metropolitan Areas”.

In terms ofsame-citydeliveryservicesIn terms ofcross-city

deliveryservices

As of the end of 2024,the half-day deliveryservice in GreaterMetropolitan Areas hasexpanded to

cities nationwide.

In late July 2024, in Yangshan Town, Wuxi, Jiangsu Province, the “Lakeview” variety of peaches, known as the“honeydew” of peaches, was officially launched. This variety not only has a short fruiting period but is also difficultto keep fresh and is prone to damage. As a result, local farmers were eager to ship the peaches out quickly. Tomeet this demand, SF invested in 6 special peach planes, 54 all-cargo aircraft, and 256 transportation trunk lines.These resources not only ensure that the peaches can be delivered to core consumption areas such as Jiangsu,Zhejiang, and Shanghai within half a day but also enable next-morning delivery for cross-provincial or long-distancetransportation. This initiative has set a unique “acceleration” benchmark in the express delivery industry.

Lakeview Peach Fresh Delivery, SF Express Lane Accelerates

Securing Safety DeliverySF strictly complies with laws and regulations, including thePostal Law of the People’s Republic of China, theMeasures forthe Supervision and Administration of Postal Delivery Safety, theMeasures for the Administration of Real-Name CollectionandDelivery of Mail and Express Mail, and theRegulations on the Administration of Prohibited Delivery Items, continuously enhancingits delivery safety management level. The company has established the “Three Systems” Management Regulations for DeliverySecurity, which clearly defines the core control principles of “real-name collection and delivery, inspection upon collection, andmachine-based security checks” to comprehensively ensure the safety of express delivery. In 2024, SF further refined its internalmanagement standards for battery collection and delivery in accordance with relevant battery delivery specifications, ensuringthe safe transport of high-risk items.

? Real-name delivery is connected with the “National Network Identity Authentication Platform” of the Ministry of Public

Security, and user information is authenticated with the help of the public security authoritative platform to ensure theauthenticity and effectiveness of the information;? Display the “online real name” prompt and real name link on the WeChat applet and APP order page to guide customersto complete the real-name authentication operation before placing an order;? Regularly verify the real-name information of monthly customers (corporate customers), and prompt the system to

modify the erroneous data to improve the accuracy of real-name information.? Automatically identify the customer ID card through OCR/NFC, and adopt the original ID card + two-element verification

mode to ensure the validity of real-name authentication;? Add the function of scanning “I” real name, and users automatically jump to the applet for real-name authentication

after scanning QR code using WeChat;? Optimize real-name prompts, add real-name authentication prompts before, when and after placing an order, and inform

users in advance to prepare valid certificates.

ProcessIntegration

? Analyze the causes of the real-name abnormal notification data of enterprises monitored by the State Post Bureau,

output it in the form of daily newspapers simultaneously, and urge relevant organizations to improve the problems.PerformanceMonitoring

SystemEnforcement

In 2024, the SFreal-name onlineregistration rate was

99.93%,

a further increasefrom 2023.

SF has established a comprehensive suite of management systems, including theMeasures forAccepting Customer Complaints, Complaint Handling Process, Claims Management Measures,andComplaint Handling Escalation Mechanism, to ensure that customer issues are resolved in a timelyand efficient manner. Additionally, the company has developed theEmergency Response CapabilitySystem,which sets grading and classification standards for customer complaint incidents, enablingeffective responses to various emergencies and significantly enhancing the efficiency of customercomplaint responses.The company adheres to the principle of “customer first, experience first” and has establisheda unified digital after-sales service platform that integrates diverse customer service channels,ensuring uninterrupted 7×24-hour service. In line with industry characteristics and customerneeds, the company has introduced differentiated claims services, such as direct customer servicecompensation and negotiated claims with insurance companies, to effectively enhance the after-salesservice experience.In 2024, SF received a total of 11,815 valid complaints related to its products and services, and allcomplaints were handled with a 100% resolution rate.Customer Satisfaction SurveySF conducts quarterly customer satisfaction and Net Promoter Score (NPS) surveys using onlinequestionnaires and random stratified sampling. These surveys continuously monitor the NPS andsatisfaction scores of both corporate and individual customers. In 2024, the total sample size forSF’s customer satisfaction surveys exceeded 160,000, covering hundreds of cities nationwide. Thesurvey content includes over 40 sub-indicators across six major dimensions: NPS, express deliverytimeliness, express delivery safety, collection and dispatch services, sales services, after-salesservices, and system services.According to the State Post Bureau’s 2024 Express Delivery Service Public Satisfaction Survey, SFranked first

in the first three quarters of 2024.

SF received a totalof 49,708complaints relatedto its products andservicesall complaintswere handled witha100%

resolution rate

SF ranked

first in the

first three quartersof 2024

Real-Name Authentication Management

Since China comprehensively promoted the real-name express delivery system in 2015, SFhas always actively responded to and strictly implemented regulatory policies, continuouslyoptimizing the real-name authentication process to ensure delivery security and user informationsecurity. On March 1, 2024, theMeasures for the Administration of the Express Delivery Market

revised and issued by the Ministry of Transport came into effect, further emphasizing theimportance of real-name collection and delivery, inspection upon collection, and machine-basedsecurity checks. These measures are designed to enhance the safety and reliability of expressdelivery services.The company fully implements the real-name collection and delivery system through processintegration, system enforcement, and performance monitoring, requiring couriers to verify thesender’s identity when collecting parcels. In 2024, the company introduced a facial recognitionsystem into the real-name authentication process as an auxiliary means of identity verification.This significantly enhances the accuracy and efficiency of sender identity verification, ensuringthe safety and compliance of the delivery process.

Enhancing Customer Experience

SF has always been committed to delivering high-quality service experiences to its customers. By actively listening tocustomer feedback and promptly responding to their needs, the company drives comprehensive operational synergy acrossall links of its business. Customer satisfaction is positioned as the core objective of SF’s service quality management.Guided by customer needs, SF continuously strengthens its quality management, refines its service standards, andenhances its service philosophy and levels.

Customer Complaint Target and Achievement2024 TargetAchievement in 20242025 TargetCustomer Service

The dissatisfaction rate

towards customer complaintservice is lower than 5%

The dissatisfaction ratecustomer complaint servicewas 4.2%

The dissatisfaction ratetowards customer complaintservice is lower than 4%

In 2024, the company focused on enhancing the service quality of its express products by launching 24-hour onlineservices to ensure timely responses to customer needs. By systematically collecting and analyzing customer feedback, thecompany redesigned the complaint handling process for its express products, established clear and measurable serviceimprovement targets, and significantly enhanced service quality. As of the end of 2024, customer satisfaction with thecompany’s express products had increased by over 30%. Additionally, the company optimized its internal managementsystems and standards in customer claims handling and express routing display to effectively improve customer experience.Customer Complaint Management

The dissatisfaction rate with customer compliant service is derived from satisfaction ratings with respect to the handling of customers’ complaint

issues, which equals to, the number of customers dissatisfied with the handling of their complaint issues / total number of customer complaints.

As of the disclosure date of this report, the 2024 public satisfaction survey data on express delivery services has not been released.

Dangerous Goods Transportation ManagementSF strictly complies with the relevant laws and regulations for the transportation of dangerous goods and has established acomprehensive dangerous goods transportation management system covering the entire process. This includes theDangerousGoods Transportation Manualand the Emergency Response Guide for In-flight Dangerous Goods Incidents, which set refinedsafety standards for the classification, identification, packaging, collection, transportation, inspection, and delivery of dangerousgoods. The company also strengthens dynamic monitoring throughout the entire transportation process to ensure safety. SFAirline continues to break through industry qualification barriers. It possesses qualifications for the transportation of Class 1-9dangerous goods for self-use aviation materials and commercial purposes. Additionally, it has become the first domestic airline toobtain the A99 international air transport certification. These achievements highlight SF’s capabilities in international complianceand operational standards.

In 2024, SF collaborated deeply with a renowned nuclear power equipment company and successfully overcame thetechnical challenges associated with the cross-border transportation of nuclear power special equipment. Confronted withthe significant size and stringent transportation requirements of nuclear power equipment, SF leveraged the global freighthub advantages of Ezhou Huahu Airport. The company innovatively adopted pre-customs declaration and pre-examination,as well as off-site customs declaration models, to achieve the full transportation of equipment from domestic warehouses toFrankfurt, Germany, in just 15 hours. This represents a more than 40% improvement in timeliness compared to the industryaverage. By utilizing customized radiation-resistant outer packaging, precise route planning, and a full-link monitoring system,SF ensured “zero damage and zero delay” throughout the entire process, from loading registration to delivery. Additionally,by integrating the airport’s capabilities in handling ninecategories of dangerous goods, SF provided one-stopservices such as professional loading and installation,achieving both safety and compliance standards.This cooperation marks the authoritative validation ofSF’s technical and service capabilities in the field ofhigh-end dangerous goods transportation. SF not onlyadvances the standardization of nuclear power equipmenttransportation but also leverages its dual strengths inresource integration and technological innovation toprovide efficient logistics support for the globalization of“Made in China”.

Overcoming Challenges in Nuclear Power Transport Equipmentand Setting High-End Logistics Standards

Training on Identification of Prohibited ArticlesTo continuously enhance employees’ ability to identify illegal and prohibited items, SF regularly conducts specialized trainingactivities for grassroots employees. In 2024, the company comprehensively strengthened employees’ safety awareness andskills by combining online platforms with offline training, as well as through self-training, morning meetings, and other forms. Thisapproach ensures that every employee can proficiently master the professional ability to identify and dispose of prohibited items,thereby providing a solid guarantee for delivery safety.

In 2024, the coverage rate of safety delivery training for the couriers is 100%, and the qualification rate of thetrainings was

99.9%.

Management of Prohibited and Illegal Items

SF strictly adheres to theRegulations on the Administration of Prohibited Delivery Items, and formulates as well as dynamicallyupdates theStandards for Consignment of Commonly Received and Delivered Itemsto ensure that the delivery safety managementsystem remains up-to-date. The company regularly conducts special rectification activities on delivery safety, employing multiplemeasures such as enhanced inspection and management, in-depth employee training, and optimized incentive mechanisms. Theseefforts effectively prevent prohibited items from entering the delivery channels and ensure proper disposal of any prohibited itemsthat have already entered the channels. Through these initiatives, SF is committed to maintaining the safety and smoothness ofdelivery channels and creating a safe and stable delivery service environment for the public.

Inspection and Management of Prohibited ArticlesSF actively collaborates with relevant state departments to jointly combat the transportation of illegal and prohibited items. Thecompany implements comprehensive and rigorous security checks on each parcel to ensure the safety of express parcels. In2024, SF significantly reduced the transport of prohibited items through a series of special operations and honored 412 securitypersonnel who proactively reported prohibited items. Currently, there are more than 1,000 licensed security personnel across thenetwork. A total of 21,680 illegal and prohibited items were detected throughout the year, a decrease of 44% compared to 2023.This fully reflects the company’s remarkable achievements in enhancing the safety awareness of its employees and the public’sperception of safe delivery.

? The system is implanted with

theStandards for Collectionand Delivery of CommonEntrusted Itemsto warn andintercept illegal items duringcustomer orders and brothercollection;? Implement compulsory

photo inspection of high-riskexpress mail, and upload it tothe system to strengthen thesafety control of receiving andsending.

? Increase investment in high-

speed security inspectionequipment and improve thequality of security inspection.? The self-developed smart

security inspection platformrealizes the integrationof sorting and securityinspection, automatespackage processing, andsupports remote multi-sitesimultaneous researchand judgment of suspectedcontraband.

? Strengthen cooperation

with public security,national security and otherdepartments, accuratelytrack and intercept expressmail of suspicious personsin the receiving, sendingand transit links, andactively communicate andcooperate with the handlingof suspicious items.

? Formulate theMeasuresfor the Administration ofRewards for Self-examinationof Illegal Contrabandtoencourage safety inspectorsto proactively discover andreport suspected prohibiteditems.

Security checkimplementationPickup anddelivery inspection

Government-

enterprisecollaboration

Positiveincentives

Qingdao SF Launches Regular Sea Transportation of

Nuclear Power Special Equipment

In 2024, SF was invited to join the Power Battery International Logistics Supply Chain Community. in collaboration with the ChinaAssociation of Communication Enterprise Management (CACEM), Chongqing Jiaotong University, and the Shanghai ResearchInstitute of Chemical Industry, SF has established a technological collaborative innovation platform and a global logistics network.These initiatives aim to enhance the improvement of transportation standards, drive technological innovation, and foster thetraining of professional talent. The collaboration covers theentire supply chain, including the import of ore raw materials,battery production logistics, recycling of used batteries, andcross-border transportation by air, sea, and land.By integrating automotive industry supply chain resourcesand hazardous materials transportation capabilities, SFhas developed an integrated solution spanning fromlithium battery raw materials to end products, providingsafe and efficient logistics support for the new energyindustry. At the 2024 World Power Battery Conferenceheld in September, SF deeply engaged in discussionson industry standards, leveraging its practical experienceto empower the green and safe development of powerbattery transportation. This further solidifies SF’sposition as a benchmark in the field of dangerous goodstransportation.

Collaborate with Industry, Academia and Research Forces toCreate New Standards for Battery Transportation

SF was invited to join the International Logistics Supply Chain

Community of power batteries

In April 2024, SF, as a founding member of the Global Sustainable Transportation Innovation Alliance, representedthe express logistics industry at the first general meeting of the Global Sustainable Transportation InnovationAlliance.The alliance is composed of 41 leading enterprises and institutions in 12 countries around the world, covering thefields of roads, water transport, railways, civil aviation, postal services, finance and technology, and is committedto building an international sustainable transportation innovation cooperation platform. The addition of SF notonly demonstrates its responsibility in promoting the sustainable development of global transportation, but alsoprovides a practical model for the green transformation of the express logistics industry. By participating in alliancecooperation, SF will join hands with global partners to jointly explore low-carbon transportation solutions, promoteindustry resource optimization and technological innovation, and contribute to building a greener, more efficientand sustainable global transportation ecology.

SF Becomes a Founding Member of the Global SustainableTransportation Innovation Alliance

Gather Local Efforts to Drive Green Changes

Driven by both international collaboration and local practice, SF is leveraging technological innovation as the link andresponsibility consensus as the cornerstone to continuously unlock the value of industry synergy and inject robustmomentum into the sustainable development of the global logistics ecosystem.

The establishment ceremony of the China LogisticsIndustry ESG Collaborative Development Alliance

From 22 to 24 October 2024, the UPU World Leaders Forum was held in Amsterdam, the Netherlands. At theforum, SF delivered a speech titled “Smart Security Inspection Platform for Postal Express,” sharing with the globalpostal industry how the platform leverages intelligent technology to complete the security inspection of parcels athigh speed, with high accuracy and efficiency. This has driven a dual improvement in the efficiency and safety ofexpress security inspection.The SF Smart Security Inspection Platform has been deployed in over100 transit hubs within the company and is equipped with more than1,000 high-speed X-ray scanners. Compared with traditional securityinspection machines, the platform achieves an efficiency improvementof more than 8 times. It has obtained 16 invention patents, won multipleawards in relevant technological innovation competitions in China, andhas been successfully applied to other companies in the industry.Faced with the trend of improving global express security standards, SFadvocated cross-border collaboration in the forum, calling on the industryto share data resources and algorithm capabilities, jointly overcometechnical bottlenecks such as rare contraband identification, and helpbuild an efficient and credible global delivery network.

SF Smart Security Platform Unveiled at UPU World Leaders Forum

The China Logistics ESG Synergy Alliance Initiative:

? Logistics practitioners should adhere to professional ethics and strictly comply with operating standards and laws andregulations.? Strengthen industry self-discipline, jointly maintain market order, and jointly build a transparent and efficient logisticsecosystem.? Actively promote the concept of green logistics to reduce environmental pollution and achieve sustainable development.? Let us join hands to eliminate negative impacts through practical actions and establish a positive image for the logistics

industry.

Since joining, SF has actively engaged in various meetings andagendas of the UPUCC, particularly the “Postal Prosperity Zone (PPZ)Pilot Project.” This project aims to foster in-depth cooperation betweenprivate courier companies and UPU-designated operators, drivingthe coordinated development of global cross-border e-commercelogistics. Through its participation, SF has fully leveraged the UPU’sextensive global network resources to achieve resource sharing andcomplementary strengths, thereby accelerating the implementation ofits international strategy. This not only enhances SF’s competitivenesswithin the global logistics ecosystem but also sets a benchmark forChinese courier companies to participate in international rule-makingand promote high-quality industry development.

In the logistics industry, efficiency and speed have always beenthe core elements of competition. Driven by the global wave ofsustainable development, ESG management is emerging as a keyforce in reshaping the industry landscape. In August 2024, at the13th Transportation Union Summit, the China Logistics ESG SynergyAlliance was officially established. The Alliance aims to promotethe development of ESG practices in the logistics industry, optimizethe allocation and complementarity of resources, and enhance theinternational competitiveness of Chinese logistics companies.As one of the co-founders of the Alliance, SF collaborates withupstream and downstream enterprises across the logistics industrychain to jointly explore and establish ESG disclosure standards andpractice pathways that align with the unique characteristics of China’slogistics sector. By integrating industry resources and innovativeexperiences, SF is committed to setting ESG practice benchmarksand driving the logistics industry towards greener, healthier, and moresustainable development.

Driving Industry Synergy and Shared ProgressSF always embraces the development philosophy of openness and sharing, and actively engages in the transformation of theglobal logistics system and industrial upgrading through multi-dimensional practices, including technological innovation, standardco-construction, and ecological synergy. On the international stage, SF leverages intelligent solutions to enhance cross-borderlogistics efficiency, thereby supporting the globalization of Chinese enterprises. Domestically, we focus on core issues of sustainabledevelopment and collaborate with industry partners to explore pathways for green transformation. By establishing collaborativeplatforms for industry, academia, and research, advocating consensus on responsibility, and exporting innovative models, SF isleading the industry’s high-quality development as a pioneer, and continuously empowering the construction of a more resilient andsustainable global logistics ecosystem.

Connecting the World Wisely and Deepening Cross-Border SynergySF actively responds to the Belt and Road Initiative, deeply participates in the “Express Delivery to the Sea” project, andis committed to building an efficient and interconnected international delivery logistics system. By integrating domestic andinternational end-to-end supply chain service capabilities, the company provides all-round support for the global layout ofChinese-funded enterprises and helps customers achieve efficient cross-border business operations. In order to further promotethe development of international business and better serve the country’s Belt and Road construction, SF officially joined theUniversal Postal Union Advisory Committee (UPUCC) in early 2024, becoming an important participant in policy formulation andrule discussion in the global postal field.As an authoritative body in the postal sector, the UPUCC brings together global postal experts, industry leaders, and businessrepresentatives, and is dedicated to providing professional advice on postal services, technology, regulations, and internationalcooperation. In recent years, the UPU has gradually opened up to a broader range of industry participants, creating significantopportunities for private courier companies to integrate into the global network and deepen international cooperation. SF’smembership not only signifies the recognition of its influence in the international postal arena, but also offers a new platform forChinese courier companies to engage in the formulation of global rules and drive high-quality industry development.

SF speech theme “Postal Express SmartSecurity Inspection Platform”

SF representatives attend the UPUCCAutumn General Assembly

About the ReportThis is the sixth annual sustainability report issued by S.F. Holding Co., Ltd.. Adhering to the principles of balance,comparability, accuracy, timeliness, clarity and reliability, this report discloses the management measures and effectivenessof S.F. Holding Co., Ltd. in terms of sustainable development.Report TitleFor the convenience of expression and reading, “SF”, “the Company”, “we” and “the Group” in this Report all refer to “S.F.Holding Co., Ltd.”.Time RangeThis report covers the period from 1 January 2024 to 31 December 2024.Reporting Scope

The reporting scope of general disclosure, management of substantive issues, and social key performance indicatorsin this report aligns with the scope of the consolidated financial statements in SF Holding's annual financial report. Tomore comprehensively and accurately reflect the Company's environmental key performance indicators, the Companywill continuously refine the data statistical calibers and methodologies for each environmental performance indicator toensure data reliability. If there are additional explanations regarding the coverage of certain information in this report,such explanations shall prevail.Reference and PrinciplesThe content of this report has been determined in accordance with a systematic process. This process includes researchand interviews, identification of significant stakeholders, identification of material ESG issues, understanding the viewsof various stakeholders, determining the materiality of issues, deciding the scope of ESG reporting, collecting relevantinformation and data, verifying the information and data, preparing the report based on the collected information and data,and review and approval of the report by the Board of Directors.The references for the preparation of this report include:

HKExAppendix C2 Environmental, Social and Governance Reporting CodeShenzhen Stock Exchange'sSelf-Regulatory Guidance No. 17 for Listed Companies —— Sustainability Report (Trial)

andSelf-Regulatory Guide No. 3 for Listed Companies —— Preparation of Sustainability ReportsGlobal Sustainability Standards Board (GSSB)GRI Standards

Task Force on Climate-related Financial Disclosures (TCFD) recommendations

International Sustainability Standards Board (ISSB)IFRS S2 Climate-related DisclosuresSustainability Accounting Standards Board (SASB)SASB Standards United Nations Sustainable Development Goals (SDGs) Key indicators of corporate environmental, social, and governance performance by capital market rating agencies.

Appendices

Reporting PrinciplesThis Report responds to and follows the reporting principles of the Environmental, Social and Governance Reporting Guide,including materiality, quantitative, consistency and balance. The following table describes the Company’s application ofthe reporting principles:

PrinciplesResponses of the CompanyMateriality

In 2024, SF conducted its first double materiality analysis to assess the Company's ESG materiality issuesand submitted the results to the Strategy Committee of the Board of Directors for review and approval. Wehave used the 2024 materiality ranking results as the foundation for the preparation of this report. In terms ofclimate-related disclosures, SF has conducted a detailed analysis of the financial impacts of climate changerisks and opportunities on the Company in the current, short-term, medium-term, and long-term periods duringthe reporting period.Quantitative

This report discloses SF's key quantitative performance indicators and sets ESG targets where applicable.The calculation criteria, methods, assumptions, and/or calculation tools for all quantitative metrics have beenexplained in the appropriate sections.Consistency

Unless otherwise specified, the selection, preparation, and reporting of information in this report are consistentwith those of previous years. If there are any significant changes that may impact comparability with prior years'reports, we will provide explanations in the relevant sections.Balance

This report is based on objective information and facts, and fairly discloses positive and negative informationabout the company to prevent descriptions or reporting formats that may affect readers’ decisions or judgments.

Meanwhile, the Report responds to and follows the reporting principles of the GRI standard. The following table is theCompany’s explanation of the application of the reporting principles:

PrinciplesResponses of the CompanyAccuracy

This report aims to disclose accurate and detailed information to fully assess the relevant impacts of theCompany's sustainability. Qualitative information is primarily sourced from corporate announcements, theofficial website, the official WeChat public account, and internal materials. Quantitative data is mainly obtainedthrough the internal data collection system, with key financial data (such as operating revenue) derived fromthe Company's annual report. The basis for data measurement and calculation, as well as the fundamentalassumptions and methods used to estimate the data, are explained in the relevant sections of the report.This report has undergone several rounds of rigorous review by the Company to ensure the accuracy of thedisclosed information.Clarity

In the process of compiling this report, the reading needs of different reader groups have been fully considered.It is written in accessible language, and detailed explanations of English abbreviations and technical termsare provided in relevant sections of the report. The report is published in three language versions – SimplifiedChinese, Traditional Chinese, and English – to cater to the language preferences of diverse readers. Additionally,a detailed table of contents and an index of appendices are included to facilitate readers in quickly locating andaccessing the information they need.Completeness

This report is based on the results of the 2024 SF Materiality Assessment and provides a comprehensivedisclosure of the Company's management measures, practices, events, and their impacts in each materialityarea. Additionally, the reasons for which certain compliance disclosure requirements are deemed inapplicableor have been simplified are detailed in the index of appendices.SustainabilityContext

This report discloses relevant information of the Company in the context of broad sustainable development,with full reference to the United Nations Sustainable Development Goals (SDGs), the climate action goals ofthe Paris Agreement, relevant authoritative intergovernmental documents, and the sustainability-related policiesof the locations where it operates.Timeliness

This annual sustainability report is published concurrently with the Company's annual financial report, aiming toprovide readers with timely information for decision-making purposes. The information disclosed in this reportcovers the period from 1 January 2024 to 31 December 2024. To ensure the completeness of the information,the time frame for some information has been appropriately extended both forward and backward.Verifiability

The Company has developed a digital information platform that enables the collection and calculation of datarelated to energy consumption and greenhouse gas emissions. This platform has been subject to review byexternal professional organizations. The data and information compiled, recorded, aggregated, and analyzed inthis report are sourced from verified primary data and do not include any unverified content.

Information ExplanationIn March 2025, SF Holding successfully underwent the verification conducted by SGS, a renowned international independentthird-party inspection and verification organization. The Company completed the third-party certification of its greenhousegas emissions for the year 2024 and obtained the Verification Statement on Greenhouse Gas Emissions.

For the monetary amounts stated in the Report, unless otherwise stated, the currency in the Report is denominated in RMB.This Report is published in both Chinese and English. If there is any discrepancy between the Chinese version and theEnglish version, the Chinese version shall prevail.Release of this ReportThis report, confirmed by management, was approved by the Board of Directors on 28 March 2025 and releasedconcurrently with the annual financial report.

Accessibility of this ReportYou can obtain the electronic version of this Report from the following website: SF’s official websitehttps://www.sf-express.com.For further consultation, or to offer any opinion or suggestion about this Report, please contact the Company viasfir@sf-express.com.

Assurance Statement

Policy ListChapterChapter nameCompliance with the main laws and regulationsSF’s Main Internal Regulations

Governance

StandardizeCorporateGovernance

Company Law of the People’s Republic of ChinaSecurities Law of the People’s Republic of ChinaShenzhen Stock Exchange Stock Listing RulesSecurities Listing Rules of The Stock Exchange ofHong Kong LimitedGuidelines for the Management of Investor RelationsWork of Listed CompaniesCorporate Governance Guidelines for ListedCompanies

Articles of Association of SF Holdings Co., Ltd.Rules of Procedure of the Board of DirectorsRules of Procedure of the Supervisory BoardRules of Procedure of the Shareholders’ MeetingIndependent Directors’ Working SystemBoard Risk Management Committee Rules ofProcedureBoard Audit Committee Rules of ProcedureBoard Nomination Committee Rules of ProcedureBoard Compensation and AssessmentCommittee Rules of ProcedureBoard Strategy Committee Rules of ProcedureInvestor Relations Management SystemCompany’s Management System for InformationDisclosureStrengthenRisk ControlManagement

Corporate Governance Guidelines for ListedCompaniesSecurities Listing Rules of The Stock Exchange ofHong Kong LimitedBasic Norms for Internal Control in Enterprises

Rules for the Operation of the Risk CommitteeGroup Risk Control and ComplianceManagement SystemGroup Risk Event Management System

Abiding byBusiness Ethics

Anti-Unfair Competition Law of the People’s Republicof ChinaInterim Provisions on Anti-Unfair Competition onthe InternetAnti-Monopoly Law of the People’s Republic of ChinaAnti-Money Laundering Law of the People’s Republicof ChinaTrademark Law of the People’s Republic of ChinaCopyright Law of the People’s Republic of ChinaAudit Law of the People’s Republic of ChinaPatent Law of the People’s Republic of ChinaInterim Provisions on Prohibiting Commercial BriberyAccounting Standards for Enterprises – ApplicationGuidelinesRegulations of the Audit Office on Internal AuditingWork

SF Express Anti-Monopoly and Competition LawCompliance Management SystemIntegrity HandbookEmployee HandbookSF Anti-Corruption Compliance ManagementSystemReporting Management MeasuresCode of Business ConductCode of Conduct for SuppliersAnti-Corruption StatementConflict of Interest StatementSF Intellectual Property Management SystemSF Software Compliance Management Measures

EnsuringInformationSecurity

Personal Information Protection Law of the People’sRepublic of ChinaData Security Law of the People’s Republic of ChinaCybersecurity Law of the People’s Republic of China

Management Standard for ComplianceInspection of Personal Information ProtectionData Lifecycle Security Management RegulationsInformation Security High-Risk BehaviorManagement MeasuresInformation Security Incident ManagementRegulationsPrivacy Data Security Compliance ManagementStandardsEmployee Information Security Handbook

ChapterChapter nameCompliance with the main laws and regulationsSF’s Main Internal Regulations

Environment

Creating GreenLogistics

Method and criteria for green packaging assessmentRequirements of restricting excessive packaging inexpress delivery

SF Airline Energy Management System(Provisional)Administrative Measures for Updating andDisposing ofOperational VehiclesRegulations on the Administration of OperationalVehiclesPut into UseLump-sum Fuel Consumption Plan forCommercial VehiclesRegulations on the Administration of Water andElectricity in the Industrial ParksManagement Guide for Maintenance of IndustrialParkFacilities and EquipmentIndustrial Park Property Service StandardsSF Packaging Code of PracticeRequirements for Restricting ExcessivePackaging in Express DeliveryPromotingCircular Economy

Circular Economy Promotion Law of the People’sRepublic of China

No relevant internal management policies

Practice GreenOperation

Air Pollution Prevention and Control Law of thePeople’s Republic of ChinaLaw of the People’s Republic of China on thePrevention and Control of Environmental Pollutionby Solid WasteLaw of the People’s Republic of China on thePrevention and Control of Ambient Noise PollutionEnergy Conservation Law of the People’s Republicof ChinaWater Law of the People’s Republic of ChinaWater Pollution Control Act of People’s Republic ofChinaSoil Pollution Prevention and Control Law of thePeople’s Republic of ChinaIntegrated Emission Standard of Air PollutantsEmission Standards for Odor PollutantsEmission Standard for Industrial Enterprises Noiseat BoundaryStandard for Noise Limits at the Boundary ofConstruction PlantsSelf-monitoring technology guidelines for pollutionsources – General ruleRegulation on the Administration of Permitting ofPollutant DischargesComprehensive Wastewater Discharge StandardStandard for pollution control on the non-hazardousindustrial solid waste storage and landfill” (GB 18599-2001)Guidelines for the Investigation of Soil PollutionHazards in Key Regulatory Units (Trial)

Measures for Office Space ManagementEnergy Metering Management SystemDangerous Goods Management ProcedureMeasures for the Administration of Water andElectricity of Property Sites

SafeguardingEcologicalEnvironments

Forestry Law of the People’s Republic of ChinaRegulations for the Implementation of Forestry Lawof the People’s Republic of ChinaRegulations of the People’s Republic of China onWild Plants Protection

No relevant internal management policiesAddressingClimate Change

No relevant laws and regulationsNo relevant internal management policies

ChapterChapter nameCompliance with the main laws and regulationsSF’s Main Internal Regulations

Social

Construction ofTalent Team

Labor Law of the People’s Republic of ChinaLabor Contract Law of the People’s Republic of ChinaRegulations for the Implementation of the IndividualIncome Tax Law of the People’s Republic of ChinaEmployment Promotion Law of the People’s Republicof China

Statement on Employee Rights ProtectionContractor regulationsAdministrative Measures for Relatives andBidding AvoidanceTalent Management SystemTalent Promotion Management SystemSf sends you to University Project ManagementMethodsRetirement and reemployment managementmethodsManagement measures for the transfer of first-andsecond-line employeesFirst- and second-line employees diversifieddevelopment of key positions within theemployment issued standard requirementsSF Recruitment Management System

ProtectingEmployees’Rights andInterests

Law of the People’s Republic of China on theProtection of Rights and Interests of WomenSocial Insurance Law of the People’s Republic ofChinaRegulations on Work-related Injury InsuranceProvisions on the Prohibition of the Use of ChildLaborSpecial Provisions on the Labor Protection of FemaleEmployeesRegulations on Paid Annual Leave for EmployeesTrade Union Law of the People’s Republic of China

Employee Welfare Management SystemEmployee Care Operation Guide ManualEmployee Voice Transformation into ProductivityWork Guidethe Employee HandbookEmployee Grievance Information DisclosureGuideFlexible Working SystemAttendance Management RegulationsEmployee Grievance Management Full ProcessTrade Union Participation in Extreme EventsWork GuideTrade Union Channel Employee GrievanceHandling Work GuideTrade Union Channel Common GrievancePromotion GuideTrade Union Participation in Individual DismissalTypes Reporting Materials StandardReasonable Suggestions ManagementMechanismRegulations on the Administration of Rewardsand Punishments

ChapterChapter nameCompliance with the main laws and regulationsSF’s Main Internal Regulations

Stand Firm onthe Frontline ofSafetyStable and SafeProduction

Work Safety Law of the People’s Republic of ChinaSpecial Equipment Safety Law of the People’sRepublic of ChinaFire Protection Law of the People’s Republic of Chinathe Law of People’s Republic of China on Preventionand Control of Occupational DiseasesGuidelines for Occupational Health and SafetyManagement SystemsByelaw Governing Reporting, Investigation andHandling of Production Safety AccidentsRegulations on emergency response to productionsafety accidentsRegulations on the administration of safe productionof construction projectsGuidelines for the Construction of Safety ProductionManagement Systems in Postal and Express DeliveryEnterprises

Safety Production Management ManualSafety Production Responsibility SystemRegulations on Acquisition, Identification, andCompliance Evaluation of Safety Laws andRegulationsRegulations on Safety Assessment and IncentiveManagementRegulations on Safety Visual ManagementRegulations on Extraction and Use of SafetyProduction ExpensesRegulations on Management of SafetyProduction Organizational StructureRegulations on Safety Management of TransitDepots OperationsMeasures for Safety Management of Forklifts inTransit DepotsRegulations on Safety Management forInstallation and Construction of Sorting andConveying EquipmentRegulations on Closed Management of TransitDepotsRegulations on Management of SafetySupervisorsRegulations on Management of SafetyProduction DirectorsRegulations on Safety Education and TrainingManagementRegulations on Hazard Source Identification,RiskAssessment, and Control ManagementRegulations on Hazard Identification andTreatment ManagementRegulations on Safety Management ofHazardous OperationsProcedures for Safe Operation of PostProperty Safety Management RegulationsRegulations on Safety Management ofContractorsRegulations on Reporting and Investigation ofSafety AccidentsRegulations on Emergency ResponseManagementRegulations on Reward Management for Self-Inspection of Illegal Prohibited ItemsRegulations on Safety Management of Vehiclesand Parcel Dispatch within the Depots

Building aResponsibilityValue Chain

E-Commerce Law of the People’s Republic of ChinaContract Law of the People’s Republic of ChinaThe Bidding Law of the People’s Republic of ChinaRegulation on the Implementation of the Bidding Lawof the People’s Republic of ChinaMeasures for the Administration of Non - biddingMethods of Government Procurement

Procurement Requirements ManagementRegulationsRegulation of Procurement SourcingManagement Regulations on Procurement RiskRegulations on the Management of PurchasingStaffProcurement Enforcement RegulationsProcurement Contract Management RegulationsProcurement Quality Management RegulationsManagement Regulations on ProcurementSuppliersCode of Conduct for SuppliersLetter of Notification of Transparent ProcurementSustainingCommitments toSocial Wellbeing

Charity Law of the People’s Republic of China

Articles of Association of SF FoundationVolunteer Association Management Regulationsof SF Foundation

ChapterChapter nameCompliance with the main laws and regulationsSF’s Main Internal Regulations

Services

PioneeringIntelligent LogisticsInnovation

No relevant laws and regulationsNo relevant internal management systemEmpoweringEnterprisesExpandingOverseas

No relevant laws and regulationsNo relevant internal management system

DeliveringPremiumServices

Law of the People’s Republic of China on the

Protection of Consumer Rights and Interests

Reasonable Suggestion ManagementMechanismReward and Punishment Rules for CustomerServiceDifferentiated Customer ServicesCustomer Voice Classification StandardCustomer Experience Customer ServiceOperation ProcessMeasures on the Acceptance of CustomerComplaintsAdministrative Measures for Claims SettlementAbnormality Handling Mechanism for Time-Effective CategoryComplaint Handling ProcedureComplaint Handling Upgrade MechanismGuidelines for the Control of Internet PublicOpinions and ComplaintsAbnormal Event Customer Service ProcessEmergency Response Capacity System

Securing SafetyDelivery

Postal Law of the People’s Republic of China

Measures for the Administration of the Real-Name

Receipt and Delivery of Mails and Express Mails

Supervision and Administration of Security of the

Postal Industry

Measures for the Supervision and Administration of

the Delivery Safety of the Postal Industry

Provisions on Articles Prohibited from Delivery

Operation Specification in Safety Production of

Express Service

Common Standards for Receiving ConsignmentsRegulations on Operation and Management ofBattery-Contained ParcelsGuidelines for Emergency Handling of DangerousGoods on BoardProvisions on the Management of “ThreeSystems” for Delivery SafetyProvisions on the Administration of ProhibitedConsignmentsOperation Procedures for Real-Name Pickupand DeliveryPickup and Delivery Inspection SystemDangerous Goods Transportation ManualSpecial Plan for the Control of Illegal andProhibited ArticlesRegulations on the Management of “ThreeSystems” for Mails and ShipmentsReward Management Measures for Self-Inspection of Illegal and Prohibited ArticlesReward Mechanism for Self-Inspection of Illegaland Prohibited ArticlesDriving IndustrySynergy andShared Progress

Anti-monopoly Law of the People’s Republic of China

Civil Code of the People’s Republic of China

(Contract Part)

Regulation on the Administration of the Registration

of Social Organizations

the State Council about Accelerating and Promoting

the Reform and Development of Trade Associations

and Chambers of Commerce

SF Group Association Membership ManagementMeasuresManagement Measures for Participating inExternal Standard Development and RevisionProjects

Key Performance IndicatorsTable of Environmental Key Performance

Indicator – EnvironmentUnit

202220232024SF (Excluding KLN)KLNTotalSF (Excluding KLN)KLNTotalSF (Excluding KLN)KLNTotal

GHG emissions

GHGemissions

Total GHG emissionstCO

e9,185,355.12,472,955.011,658,310.19,659,416.62,444,634.012,104,050.69,463,418.52,987,414.012,450,832.5Scope 1tCO

e3,143,752.0322,253.03,466,005.02,652,365.1215,018.02,874,104.13,045,612.0116,401.03,162,013.0Scope 2tCO

e1,804,248.580,543.01,884,791.51,465,521.879,916.01,545,437.81,328,969.178,409.01,407,378.1Scope 3

tCO

e4,237,354.62,070,159.06,307,513.65,541,529.72,149,700.07,691,229.75,088,837.32,792,604.07,881,441.3——Category 1: Purchased goods and servicestCO

e2,522,391.5N/A2,522,391.5775,202.1N/A775,202.1841,927.1N/A841,927.1——Category 2: Capital goodstCO

eN/AN/AN/A783,987.2N/A783,987.2207,867.9N/A207,867.9——Category 3: Fuel and energy-related activitiestCO

e1,689,195.7N/A1,689,195.71,754,182.2N/A1,754,182.21,390,234.7N/A1,390,234.7——Category 4: Upstream transportation anddistribution

tCO

eN/A2,070,159.02,070,159.02,073,065.92,149,700.04,222,765.92,512,644.82,792,604.05,305,248.8——Category 5: Waste generated in operationtCO

e1,492.1N/A1,492.13,303.1N/A3,303.11,053.5N/A1,053.5——Category 6: Business triptCO

eN/AN/AN/A20,721.2N/A20,721.241,120.5N/A41,120.5——Category 7: Employee commutingtCO

e24,275.3N/A24,275.325,070.6N/A25,070.625,339.4N/A25,339.4——Category 8: Upstream leased assetstCO

eN/AN/AN/AN/AN/AN/A16,899.5N/A16,899.5——Category 12: End-of-life treatment of soldproducts

tCO

eN/AN/AN/A10,217.8N/A10,217.83,560.9N/A3,560.9——Category 15: InvestmenttCO

eN/AN/AN/A95,779.7N/A95,779.748,189.0N/A48,189.0

Indicator – EnvironmentUnit

202220232024SF (Excluding KLN)KLNTotalSF (Excluding KLN)KLNTotalSF (Excluding KLN)KLNTotalGHG emission intensity

tCO

e/millionrevenue (RMB)

47.633.143.545.453.446.841.254.743.8GHG emissions per parcel

g CO

e/parcel824.5N/A824.5807.0N/A807.0709.9N/A709.9GHGemissionsremoval

GHG removal from newly planted treestCO

eN/A6.06.04.69.013.555.68.013.6Purchased carbon creditstCO

eN/AN/AN/AN/AN/AN/A44.0N/A44.0EmissionNitrogen oxide emissionston25,555.52,416.027,971.527,246.41,907.029,153.425,045.2528.025,573.2Sulfur oxide emissionton20.66.026.618.23.021.217.40.818.2Particle emissionston2,087.3156.02,243.32,021.2118.02,139.22,011.135.02,046.1Energy consumption

Non-renewableenergy

Total non-renewable energy consumption

MWh18,546,599.71,673,098.020,219,697.717,506,785.11,005,665.018,512,450.118,320,256.3544,719.018,864,975.3tce2,278,114.1205,509.82,483,623.92,150,391.7123,527.72,273,919.42,250,311.966,908.92,317,220.8Gasoline consumption

MWh1,100,111.115,339.01,115,450.11,394,864.513,424.01,408,288.51,870,846.612,205.01,883,051.6tce135,128.71,884.1137,012.9171,333.91,648.9172,982.8229,799.61,499.2231,298.8Diesel consumption

MWh12,590,526.51,035,410.013,625,936.510,681,630.0780,440.011,462,070.09,731,667.6350,675.010,082,342.6tce1,546,518.3127,181.41,673,699.71,312,044.995,862.91,407,907.91,195,359.243,074.11,238,433.3Aviation kerosene consumption

MWh4,855,962.1N/A4,855,962.15,430,290.5N/A5,430,290.56,717,577.2N/A6,717,577.2tce596,467.1N/A596,467.1667,012.9N/A667,012.9825,132.8N/A825,132.8

Indicator – EnvironmentUnit

202220232024SF (Excluding KLN)KLNTotalSF (Excluding KLN)KLNTotalSF (Excluding KLN)KLNTotalNatural gas consumption

MWhN/A1,410.01,410.0N/A909.0909.0165.01,399.01,564.0tceN/A173.2173.2N/A111.7111.720.3171.8192.1Liquefied petroleum gas consumption

MWhN/A2,808.02,808.0N/A2,112.02,112.0N/A1,870.01,870.0tceN/A344.9344.9N/A259.4259.4N/A229.7229.7Compressed natural gas consumption

MWhN/A614,100.0614,100.0N/A204,405.0204,405.0N/A174,356.0174,356.0tceN/A75,431.175,431.1N/A25,107.525,107.5N/A21,416.521,416.5Gas and oil consumption

MWhN/A4,031.04,031.0N/A4,375.04,375.0N/A4,214.04,214.0tceN/A495.1495.1N/A537.4537.4N/A517.6517.6Renewableenergy

Total non-renewable energy consumptionMWh7,271.2901.08,172.215,712.01,402.017,114.044,073.73,837.047,910.7Solar energy consumptionMWh7,271.2768.08,039.215,712.01,378.017,090.044,073.73,581.047,654.7Hydropower consumption

MWhN/A133.0133.0N/A24.024.0N/A256.0256.0Indirectenergyconsumption

Electricity consumption

MWh1,840,522.7164,389.02,004,911.72,100,998.5167,799.02,268,797.52,081,160.5145,144.02,226,304.5

tce226,074.920,192.2246,267.1258,069.620,611.1278,680.7255,632.917,828.3273,461.2Total energy soldMWh74.8657.0731.857.2479.0536.21,330.3836.02,166.3Total energy consumption

MWh20,394,318.81,837,731.022,232,049.819,623,438.41,174,387.020,797,825.420,444,160.2692,864.021,137,024.2

tce2,505,073.0225,732.02,730,805.02,410,384.3144,252.22,554,636.42,511,195.185,105.82,596,300.9Energy consumption intensity

MWh/million

revenue (RMB)

105.824.683.192.325.680.589.012.774.3

tce/million

revenue (RMB)

13.03.010.211.33.29.910.91.69.1Use of water resourcesWater withdrawton1,423,452.01,169,181.02,592,633.01,601,051.41,042,625.02,643,676.42,148,565.7747,469.02,896,034.7

Due to differences in business models, this indicator is not applicable to SF (excluding KLN), and is therefore shown as N/A.

Indicator – EnvironmentUnit

202220232024SF (Excluding KLN)KLNTotalSF (Excluding KLN)KLNTotalSF (Excluding KLN)KLNTotalWater withdraw intensity

ton/millionrevenue (RMB)

7.415.79.77.522.810.239.313.710.18WasteNon-hazardous wasteton46,096.328,442.074,538.3155,214.620,113.0175,327.671,680.36,345.078,025.3Non-hazardous waste intensity

ton/millionrevenue (RMB)

0.20.40.30.70.40.70.30.10.3Hazardous wastetonN/A

142.0142.0N/A

54.054.0N/A

95.095.0

Hazardous waste intensity

ton/millionrevenue (RMB)

N/A

0.00190.00053N/A

0.00120.00021N/A

0.0020.0

Amount of recycled wastetonN/AN/AN/AN/AN/AN/A12,652.4012,652.4Packaging materials

Use ofpackagingmaterials

Total use of packaging materialskg445,093,236.0

9,203,000.0454,296,236.0

477,113,830.45,672,000.0482,785,830.4509,788,812.83,822,000.0513,610,812.8Express envelopekg75,219,380.073,959,992.9N/A73,959,992.962,496,828.6N/A62,496,828.6Waybillkg17,620,130.414,257,402.5N/A14,257,402.517,011,032.2N/A17,011,032.2Cartonkg241,291,360.0266,797,554.74,539,000.0271,336,554.7289,325,961.82,748,000.0292,073,961.8Plastic bagskg41,596,926.651,729,610.91,100,000.052,829,610.963,431,526.21,035,000.064,466,526.2Scotch tapeskg28,412,018.026,013,021.8N/A26,013,021.828,721,914.5N/A28,721,914.5Foaming types of fillerskg12,814,718.212,884,490.833,000.012,917,490.817,388,517.539,000.017,427,517.5Inflatable type of fillerskg28,138,702.831,471,756.8N/A31,471,756.831,413,031.9N/A31,413,031.9Environmental complianceThe amount of penalties for significant administrative violations orcriminal liabilities imposed by environmental protection and otherrelevant departments due to environmental incidents during thereporting period

RMB10,000000000000

SF (excluding KLN) does not generate hazardous waste in its own operations, and is therefore shown as N/A.

Due to differences in business models, some indicators in the usage of packaging materials are not applicable, and are therefore shown as N/A.

Table of Social Key Performance

Indicator -SocietyUnit202220232024Number of workforceTotal workforcePerson743,377746,577739,542By gender

MalePerson623,980627,408626,242FemalePerson119,397119,169113,300By age

Aged below 30Person244,875226,221232,004Aged 30-50Person485,308508,251492,255Aged over 50Person13,19412,10515,283By job functions

Management (includingprimary-level managers)

Person25,37426,02525,940ProfessionalPerson47,80443,72541,069Primary-levelPerson670,167676,827672,303By region

Mainland ChinaPerson699,795711,666707,042Hong Kong, Macao andTaiwan

Person7,1587,1766,662OverseasPerson36,42427,73525,838By job type

Full-timePerson630,072647,728629,917Part-timePerson113,30598,849109,625Number of new hiresPerson323,493305,817215,118Number of new female hiresPerson61,60653,89441,382Number of truck driversPerson32,06130,03432,566Number of departuresTotal departuresPerson142,540122,037119,993Turnover rate

%19.216.316.2

Turnover rate = Total departures ÷ Total workforce

Indicator -SocietyUnit202220232024By gender

Male%18.615.915.6Female%22.218.719.4By age

Aged below 30%30.926.424.5Aged 30-50%13.612.112.6Aged over 50%7.27.48.2By region

Mainland China%17.215.213.7Hong Kong, Macao andTaiwan

%25.322.523.6Overseas%55.243.383.1Workforce rights and interestsPercentage of workforce covered by collective agreement%49.0100.0100.0Employee satisfaction%86.487.892.3Health and safetyThe number of working days lost due to injuryDay36,95934,28239,228Deaths due to work-related injuriesPerson545837Death rate due to work-related injuries

Per hundred

workforce

0.00730.00780.0050Lost-time injury rate

Per millionhoursworked

1.762.352.07Number of aviation accidentsCase000

Turnover rate by gender = Number of departures of male or female ÷ Number of male or female

Turnover rate by age = Number of departures by age ÷ Number of workforce by age

Turnover rate by region = Number of departures by region ÷ Number of workforce by region

Death rate due to work-related injuries = Number of workforce deaths due to work-related injuries ÷ Total workforce × 100

Lost-time injury rate = Number of lost man-hours accidents ÷ Number of hours actually worked × 1,000,000

Indicator -SocietyUnit202220232024Training and developmentTotal number of training sessionsSession18,92334,84639,047Training & development expenditureRMB10,0006,5477,88710,842Number of trained workforceTotal number of trained workforcePerson728,201724,277711,311By gender

MalePerson613,328612,206605,503FemalePerson114,873112,071105,820By job functions

Management (includingprimary-level managers)

Person24,29723,05323,725ProfessionalPerson38,95337,56539,189Primary-levelPerson664,951663,709647,448Percentage of trained workforce%98.097.096.2By gender

Male%84.284.585.1Female%15.815.514.9By job functions

Management (includingprimary-level managers)

%3.33.23.3Professional%5.45.25.5Primary-level%91.391.691.0Training hoursTotal training hoursHour4,351,4735,644,9826,768,687Average training hours per trained workforceHour6.07.89.2By gender

MaleHour5.97.89.2FemaleHour6.17.99.0By job functions

Management (includingprimary-level managers)

Hour4.67.18.6ProfessionalHour4.97.810.5Primary-levelHour5.57.69.1

Percentage of trained workforce by gender = Number of trained male or female ÷ Total number of trained workforce

Percentage of trained workforce by job functions = Number of trained workforce by job functions ÷ Total number of trained workforce

Average training hours per trained workforce by gender = Total training hours of male or female ÷ Number of trained male or female

Average training hours per trained workforce by job functions = Total training hours by job functions ÷ Number of trained workforce by job functions

Indicator -SocietyUnit202220232024Supply chain managementTotal number of suppliers

Company12,41410,9323,881By region

Mainland ChinaCompany11,72810,2713,872Hong Kong, Macao andTaiwan

Company169511OverseasCompany5175198Total number of Tier-1 suppliersCompany

New indicators added in 2024

Total number of significant suppliers in Tier-1Company442Percentage of total spend on significant suppliers in Tier-1%98.4Total number of significant suppliers in non Tier-1Company980Product liabilityNumber of products and service related valid complaintsreceived

Case3512,19511,815Number of major safety and quality liability accidentsrelated to products and services that occurred during thereporting period

Case000The amount of damages involved in major safety andquality liability accidents related to products and servicesthat occurred during the reporting period

RMB10,000000Anti-corruptionThe number of legal proceedings brought and concludedagainst the Company or its workforce for corruption

Case240Anti-corruption trainingTotal hours of anti-corruption trainingHour32,33670,07362,326Number of workforce involved in anti-corruption trainingPerson67,893121,70159,891Number of directors involved in anti-corruption trainingPerson777Percentage of directors participating in anti-corruptiontraining

%100.0100.0100.0Number of management involved in anti-corruption trainingPersonNew indicators added in 20243,714

In 2024, the Company optimized the statistical criteria for the number of suppliers, counting only those suppliers with whom actual business transactionsoccurred during the reporting year. As a result, the total number of suppliers decreased compared to previous years.

Data source: Postal Industry Complaint Service Platform of the People’s Republic of China State Post Bureau. Due to the system reconstruction ofthe Postal Industry Complaint Service Platform and adjustments to the complaint acceptance rules, the number of complaints in 2024 has increasedcompared to previous years.

Indicator -SocietyUnit202220232024Community investmentDonations to community activitiesRMB10,00011,88510,5907,177Community activity expenses (excluding donations)RMB10,0009410180Number of volunteer activity participationsPerson-time7,2268,9217,662Total hours of volunteer activityHour1,206,28635,30835,671Innovation drivenThe amount of R&D investmentRMB10,000352,814336,329309,371Percentage of R&D investment to operating revenue%1.31.31.1Number of R&D personnelPerson5,6524,6374193Number of valid patents during the reporting periodPatent1,7492,0032,252Number of invention patent applications during thereporting period

Patent418337263Number of granted invention patents during the reportingperiod

Patent110188314Number of invention patents applied to the principalbusiness

Patent682730783Data security and privacy protectionNumber of data security incidents that occurred duringthe reporting period

Case000Specific amounts involved in data security incidentsRMB10,000000Number of customer privacy breaches that occurred duringthe reporting period

Case000The specific amount involved in the customer privacybreach incident

RMB10,000000Anti-monopoly and anti-unfair competitionNumber of lawsuits or major administrative penaltiescaused by the company’s monopoly and unfair competitionbehavior during the reporting period

Case000The amount involved in lawsuits or major administrativepenalties caused by the company’s monopoly and unfaircompetition behavior during the reporting period

RMB10,000000

Sustainability Report Content Index

Index to the HKEx’s ESG Reporting Code

ESG MetricsLocation/NoteMandatory Disclosure RequirementsGovernance Structure(i)a disclosure of the board’s oversight of ESG issues;

SustainabilityManagement(ii)

the board’s ESG management approach and strategy, including the process used toevaluate, prioritise and manage material ESG-related issues (including risks to theissuer’s businesses); and(iii)

how the board reviews progress made against ESG-related goals and targets with anexplanation of how they relate to the issuer’s businesses.Reporting PrinciplesMateriality

The ESG report should disclose: (i) the process to identify and the criteria for theselection of material ESG factors; (ii) if a stakeholder engagement is conducted, adescription of significant stakeholders identified, and the process and results of theissuer’s stakeholder engagement.

SustainabilityManagementAbout the ReportQuantitative

Information on the standards, methodologies, assumptions and/or calculation tools used,and source of conversion factors used, for the reporting of emissions/energy consumption(where applicable) should be disclosed.

Key PerformanceIndicatorsAbout the ReportConsistency

The issuer should disclose in the ESG report any changes to the methods or KPIs used,or any other relevant factors affecting a meaningful comparison.

Key PerformanceIndicatorsAbout the ReportReporting BoundaryA narrative explaining the reporting boundaries of the ESG report and describing the process used to identifywhich entities or operations are included in the ESG report. If there is a change in the scope, the issuer shouldexplain the difference and reason for the change.

About the Report“Comply or explain” ProvisionsAspect A1: Emissions

General DisclosureInformation on:

Relating to air emissions, discharges into water and land, and generation of hazardousand non-hazardous waste.

Practice Green

Operation

Policy List(a) the policies; and(b) compliance with relevant laws and regulations that have a significant impact on

the issuerNote: Air emissions include NOx, SOx, and other pollutants regulated under national laws andregulations. Hazardous wastes are those defined by national regulations.KPI A1.1The types of emissions and respective emissions data.

Key PerformanceIndicators

ESG MetricsLocation/Note

KPI A1.3

Total hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g. perunit of production volume, per facility).

Key PerformanceIndicatorsKPI A1.4

Total non-hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g.per unit of production volume, per facility).

Key PerformanceIndicatorsKPI A1.5Description of emission target(s) set and steps taken to achieve them.

Practice GreenOperationKPI A1.6

Description of how hazardous and non-hazardous wastes are handled, and a descriptionof reduction target(s) set and steps taken to achieve them.

Practice GreenOperationAspect A2: Use of ResourcesGeneral Disclosure

Policies on the efficient use of resources, including energy, water and other rawmaterials.

Practice GreenOperationPolicy ListNote: Resources may be used in production, in storage, transportation, in buildings, electronicequipment, etc.KPI A2.1

Direct and/or indirect energy consumption by type (e.g. electricity, gas or oil) in total(kWh in ’000s) and intensity (e.g. per unit of production volume, per facility).KPI A2.2Water consumption in total and intensity (e.g. per unit of production volume, per facility).

Key PerformanceIndicatorsKPI A2.3Description of energy use efficiency target(s) set and steps taken to achieve them.

Practice GreenOperationKPI A2.4

Description of whether there is any issue in sourcing water that is fit for purpose, waterefficiency target(s) set and steps taken to achieve them.

Practice GreenOperationKPI A2.5

Total packaging material used for finished products (in tonnes) and, if applicable, withreference to per unit produced.

Key PerformanceIndicatorsAspect A3: The Environment and Natural ResourcesGeneral Disclosure

Policies on minimising the issuer’s significant impacts on the environment and naturalresources.

Practice GreenOperationPolicy ListKPI A3.1

Description of the significant impacts of activities on the environment and naturalresources and the actions taken to manage them.

Practice GreenOperationSafeguardingEcologicalEnvironmentsCreating GreenLogisticsAspect B1: EmploymentGeneral Disclosure

relating to compensation and dismissal, recruitment and promotion, working hours, restperiods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare.

ProtectingEmployees’ Rightsand InterestsPolicy List(a) the policies; and(b) compliance with relevant laws and regulations that have a significant impact on

the issuerKPI B1.1

Total workforce by gender, employment type (for example, full- or part-time), age groupand geographical region.

Key PerformanceIndicatorsKPI B1.2Employee turnover rate by gender, age group and geographical region.

Key PerformanceIndicators

ESG MetricsLocation/NoteAspect B2: Health and SafetyGeneral Disclosure

relating to providing a safe working environment and protecting employees fromoccupational hazards.

Stand Firm on theFrontline of SafetyPolicy List(a) the policies; and(b) compliance with relevant laws and regulations that have a significant impact on

the issuerKPI B2.1

Number and rate of work-related fatalities occurred in each of the past three yearsincluding the reporting year.

Key PerformanceIndicatorsKPI B2.2Lost days due to work injury.

Key PerformanceIndicatorsKPI B2.3

Description of occupational health and safety measures adopted, and how they areimplemented and monitored.

Stable and SafeProductionAspect B3: Development and TrainingGeneral Disclosure

Policies on improving employees’ knowledge and skills for discharging duties at work.Description of training activities.

Construction ofTalent TeamNote: Training refers to vocational training. It may include internal and external coursespaid by the employer.KPI B3.1

The percentage of employees trained by gender and employee category (e.g. seniormanagement, middle management).

Key PerformanceIndicatorsKPI B3.2The average training hours completed per employee by gender and employee category.

Key PerformanceIndicatorsAspect B4: Labour StandardsGeneral Disclosure

relating to preventing child and forced labour.

ProtectingEmployees’ Rightsand InterestsPolicy List(a) the policies; and(b) compliance with relevant laws and regulations that have a significant impact on

the issuerKPI B4.1Description of measures to review employment practices to avoid child and forced labour.KPI B4.2Description of steps taken to eliminate such practices when discovered.Aspect B5: Supply Chain ManagementGeneral DisclosurePolicies on managing environmental and social risks of the supply chain.

Building aResponsibilityValue ChainKPI B5.1Number of suppliers by geographical region.

Key PerformanceIndicatorsKPI B5.2

Description of practices relating to engaging suppliers, number of suppliers where thepractices are being implemented, and how they are implemented and monitored.

Building aResponsibilityValue ChainKPI B5.3

Description of practices used to identify environmental and social risks along the supplychain, and how they are implemented and monitored.

Building aResponsibilityValue ChainKPI B5.4

Description of practices used to promote environmentally preferable products andservices when selecting suppliers, and how they are implemented and monitored.

Building aResponsibilityValue Chain

ESG MetricsLocation/NoteAspect B6: Product Responsibility

General Disclosure

relating to health and safety, advertising, labelling and privacy matters relating toproducts and services provided and methods of redress.

DeliveringPremium ServicesSecuring SafetyDeliveryEnsuringInformationSecurityPolicy List(a) the policies; and(b) compliance with relevant laws and regulations that have a significant impact onthe issuer

KPI B6.1

Percentage of total products sold or shipped subject to recalls for safety and healthreasons.

The company’sscope of businessas a logistics andtransport serviceprovider doesnot involve thehealth and safetyimplications ofits products andservices.KPI B6.2Number of products and service related complaints received and how they are dealt with.

DeliveringPremium ServicesKPI B6.3Description of practices relating to observing and protecting intellectual property rights.

Abiding byBusiness Ethics

KPI B6.4Description of quality assurance process and recall procedures.

The company’sscope of businessas a logisticsand transportservice providerdoes not involvequality checkingprocesses orproduct recallprocedures.KPI B6.5

Description of consumer data protection and privacy policies, and how they areimplemented and monitored.

EnsuringInformationSecurityAspect B7: Anti-corruptionGeneral Disclosure

relating to bribery, extortion, fraud and money laundering.

Abiding byBusiness EthicsPolicy List(a) the policies; and(b) compliance with relevant laws and regulations that have a significant impact on

the issuerKPI B7.1

Number of concluded legal cases regarding corrupt practices brought against the issueror its employees during the reporting period and the outcomes of the cases.

Key PerformanceIndicatorsKPI B7.2

Description of preventive measures and whistle-blowing procedures, and how they areimplemented and monitored.

Abiding byBusiness EthicsKPI B7.3Description of anti-corruption training provided to directors and staff.

Abiding byBusiness EthicsKey PerformanceIndicators

ESG MetricsLocation/NoteAspect B8: Community InvestmentGeneral Disclosure

Policies on community engagement to understand the needs of the communities wherethe issuer operates and to ensure its activities take into consideration the communities’interests.

SustainingCommitments toSocial WellbeingKPI B8.1

Focus areas of contribution (e.g. education, environmental concerns, labour needs,health, culture, sport).

SustainingCommitments toSocial WellbeingKPI B8.2Resources contributed (e.g. money or time) to the focus area.

SustainingCommitments toSocial WellbeingKey PerformanceIndicatorsPart D: Climate-related DisclosuresThis section is effective for financial years beginning on or after January 1, 2025. During the reporting period, the Company disclosedits emissions in accordance with paragraph 17(1) of Part D: “An issuer must disclose its Scope 1 greenhouse gas emissions and Scope2 greenhouse gas emissions pursuant to paragraphs 28(a), 28(b) and 29 on a mandatory basis.”

28. An issuer shall

disclose its absolutegross greenhousegas emissionsgenerated duringthe reporting period,expressed asmetric tons of CO2equivalent, classifiedas:

(a) Scope 1 greenhouse gas emissions;

Key PerformanceIndicators(b) Scope 2 greenhouse gas emissions;

29. An issuer shall:

(a) measure its greenhouse gas emissions in accordance with the Greenhouse Gas

Protocol: A Corporate Accounting and Reporting Standard (2004) unless requiredby a jurisdictional authority or another exchange on which the issuer is listed touse a different method for measuring greenhouse gas emissions;

Key PerformanceIndicators(b) disclose the approach it uses to measure its greenhouse gas emissions including:

(i) the measurement approach, inputs and assumptions the issuer uses tomeasure its greenhouse gas emissions; (ii) the reason why the issuer has chosenthe measurement approach, inputs and assumptions it uses to measure itsgreenhouse gas emissions; and (iii) any changes the issuer made to themeasurement approach, inputs and assumptions during the reporting period andthe reasons for those changes;(c) for Scope 2 greenhouse gas emissions disclosed in accordance with paragraph

28(b), disclose its location-based Scope 2 greenhouse gas emissions, and provideinformation about any contractual instruments that is necessary to enable anunderstanding of the issuer’s Scope 2 greenhouse gas emissions; and

Index to the Shenzhen Stock Exchange’s Self-Regulatory Guidance No. 17 forListed Companies — Sustainability Report (Trial)Disclosure RequirementLocationAddressing Climate ChangeAddressing Climate ChangePollutant EmissionsPractice Green OperationWaste ManagementPractice Green OperationEcosystem and Biodiversity ConservationSafeguarding Ecological EnvironmentsEnvironmental Compliance ManagementPractice Green OperationEnergy UtilizationPractice Green OperationWater ResourcePractice Green OperationCircular Economy

Promoting Circular EconomyCreating Green LogisticsRural RevitalizationSustaining Commitments to Social WellbeingSocial ContributionsSustaining Commitments to Social WellbeingTechnology InnovationPioneering Intelligent Logistics InnovationEthics of Science and TechnologyPioneering Intelligent Logistics InnovationSupply Chain Security and ResilienceBuilding a Responsibility Value ChainEqual Treatment of Small and Medium-sized Enterprises (SMEs)Building a Responsibility Value ChainProduct and Service Safety and Quality

Delivering Premium ServicesSecuring Safety DeliveryData Security and Customer Privacy ProtectionEnsuring Information Security

Disclosure RequirementLocation

Employees

Construction of Talent TeamProtecting Employees’ Rights and InterestsIn compliance with relevant statutory provisions, the company isnot categorized as a production and operation entity in the high-riskindustries or fields as defined by the state, and thus is not subjectto the mandatory requirement of subscribing to Safety ProductionLiability Insurance. The company has procured Employer’s LiabilityInsurance and Property Public Liability Insurance to augment thesafeguarding of its employees and third parties.Due Diligence

In 2024, the Company did not experience any significant ESG-related negative events. Currently, the Company has notestablished a comprehensive due diligence process. Movingforward, the Company will gradually develop an ESG due diligencemechanism, drawing on industry best practices and internationalsustainability disclosure standards, while integrating its ownbusiness characteristics.Stakeholder CommunicationSustainability ManagementAnti-Bribery and Anti-corruptionAbiding by Business EthicsAnti-unfair CompetitionAbiding by Business EthicsGreen PackagingDeveloping Sustainable PackagingDiversity and InclusionProtecting Employees’ Rights and InterestsSafety Delivery and TransportationStand Firm on the Frontline of Safety, Stable and Safe ProductionBuilding a Green and Intelligent Industrial ChainCreating Green LogisticsCorporate GovernanceStandardize Corporate Governance

GRI Standard Content IndexStatement of use

SF referred to the GRI standards for preparation of the Report covering the period from January 1,2024, to December 31, 2024.

GRI 1 usedGRI 1: Foundation 2021GRI StandardIndicator No.

GRI Standard IndicatorLocation/NoteGRI 2: General Disclosures 20212-1Organizational details

About SFAbout the Report2-2Entities included in the organization’s sustainability reportingAbout the Report2-3Reporting period, frequency and contact pointAbout the Report2-4Restatements of informationAbout the Report2-5External assuranceAssurance Statement2-6Activities, value chain and other business relationships

About SFBuilding a Responsibility Value ChainServices: Empowering New-Quality ProductivityThrough Digital Intelligence2-7Employees

Construction of Talent TeamProtecting Employees’ Rights and InterestsKey Performance2-8Workers who are not employees

Construction of Talent TeamProtecting Employees’ Rights and InterestsKey Performance2-9Governance structure and compositionStandardize Corporate Governance2-10Nomination and selection of the highest governance bodyStandardize Corporate Governance2-11Chair of the highest governance bodyStandardize Corporate Governance2-12

Role of the highest governance body in overseeing the

management of impacts

Standardize Corporate Governance2-13Delegation of responsibility for managing impactsSustainability Management2-14

Role of the highest governance body in sustainabilityreporting

Sustainability Management2-15Conflicts of interest

Abiding by Business Ethics

Building a Responsibility Value Chain2-16Communication of critical concernsSustainability Management2-17Collective knowledge of the highest governance bodySustainability Management

GRI StandardIndicator No.

GRI Standard IndicatorLocation/Note2-18

Evaluation of the performance of the highest governance

body

Sustainability Management2-19Remuneration policiesSustainability Management2-20Process to determine remunerationSustainability Management2-21Annual total compensation ratioConfidentiality Limits2-22Statement on sustainable development strategySustainability Management2-23Policy commitmentsSustainability Management2-24Embedding policy commitmentsSustainability Management2-25Processes to remediate negative impacts

In 2024, the Company did not experience any

significant ESG-related negative events. Currently,

the Company has not established a comprehensive

due diligence process. Moving forward, the

Company will gradually develop an ESG due

diligence mechanism, drawing on industry best

practices and international sustainability disclosure

standards, while integrating its own business

characteristics.2-26Mechanisms for seeking advice and raising concernsSustainability Management2-27Compliance with laws and regulationsPolicy List2-28Membership associationsDriving Industry Synergy and Shared Progress2-29Approach to stakeholder engagementSustainability Management2-30Collective bargaining agreementsSmooth Employee VoiceGRI 3: Material Topics 20213-1Process to determine material topicsSustainability Management3-2List of material topicsSustainability Management3-3Management of material topicsSustainability ManagementGRI 101: Biodiversity 2024101-1Policies to halt and reverse biodiversity lossNot Applicable101-2Management of biodiversity impactsSafeguarding Ecological Environments101-3Access and benefit-sharingNot Applicable101-4Identification of biodiversity impactsSafeguarding Ecological Environments101-5Locations with biodiversity impactsSafeguarding Ecological Environments101-6Direct drivers of biodiversity lossNot Applicable101-7Changes to the state of biodiversitySafeguarding Ecological Environments101-8Ecosystem servicesSafeguarding Ecological Environments

GRI StandardIndicator No.

GRI Standard IndicatorLocation/NoteGRI 201: Economic Performance 2016201-1Direct economic value generated and distributedPlease refer to the Company’s annual report201-2

Financial implications and other risks and opportunities due

to climate change

Addressing Climate Change201-3Defined benefit plan obligations and other retirement plansProtecting Employees’ Rights and Interests201-4Financial assistance received from governmentPlease refer to the Company’s annual reportGRI 202: Market Presence 2016202-1

Ratios of standard entry level wage by gender compared tolocal minimum wage

Confidentiality Limits202-2

Proportion of senior management hired from the localcommunity

Confidentiality LimitsGRI 203: Indirect Economic Impacts 2016203-1Infrastructure investments and services supportedSustaining Commitments to Social Wellbeing203-2Significant indirect economic impactsSustaining Commitments to Social WellbeingGRI 204: Procurement Practices 2016204-1Proportion of spending on local suppliersConfidentiality LimitsGRI 205: Anti-corruption 2016205-1Operations assessed for risks related to corruptionAbiding by Business Ethics205-2

Communication and training about anti-corruption policiesand procedures

Abiding by Business Ethics205-3Confirmed incidents of corruption and actions takenAbiding by Business EthicsGRI 206: Anti-competitive Behavior 2016206-1

Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

Abiding by Business EthicsGRI 207: Tax 2019207-1Approach to taxPlease refer to the Company’s annual report207-2Tax governance, control, and risk managementPlease refer to the Company’s annual report207-3

Stakeholder engagement and management of concernsrelated to tax

Please refer to the Company’s annual report207-4Country-by-country reportingNot ApplicableGRI 301: Materials 2016301-1Materials used by weight or volume

Developing Sustainable Packaging

Key Performance Indicators

GRI StandardIndicator No.

GRI Standard IndicatorLocation/Note301-2Recycled input materials usedDeveloping Sustainable Packaging301-3Reclaimed products and their packaging materialsDeveloping Sustainable PackagingGRI 302: Energy 2016302-1Energy consumption within the organizationKey Performance Indicators302-2Energy consumption outside of the organizationKey Performance Indicators302-3Energy intensityKey Performance Indicators302-4Reduction of energy consumption

Creating Green LogisticsBuilding Green Industrial ParkPractice Green Operation302-5Reductions in energy requirements of products and services

Creating Green LogisticsBuilding Green Industrial ParkGRI 303: Water and Effluents 2018303-1Interactions with water as a shared resource

Building Green Industrial ParkPractice Green Operation303-2Management of water discharge-related impacts

Building Green Industrial ParkPractice Green Operation303-3Water withdrawal

Practice Green OperationKey Performance Indicators303-4Water dischargePractice Green Operation303-5Water consumption

Practice Green OperationKey Performance IndicatorsGRI 305: Emissions 2016305-1Direct (Scope 1) GHG emissionsKey Performance Indicators305-2Energy indirect (Scope 2) GHG emissionsKey Performance Indicators305-3Other indirect (Scope 3) GHG emissionsKey Performance Indicators305-4GHG emissions intensity

Key Performance IndicatorsCreating Green Logistics305-5Reduction of GHG emissions

Creating Green LogisticsDeveloping Sustainable Packaging

GRI StandardIndicator No.

GRI Standard IndicatorLocation/Note305-6Emissions of ozone-depleting substances (ODS)Not Applicable305-7

Nitrogen oxides (NOx), sulfur oxides (SOx), and other

significant air emissions

Key Performance IndicatorsGRI 306: Waste 2020306-1Waste generation and significant waste-related impactsPractice Green Operation306-2Management of significant waste-related impactsPractice Green Operation306-3Waste generatedKey Performance Indicators306-4Waste diverted from disposalPractice Green Operation306-5Waste directed to disposalPractice Green OperationGRI 308: Supplier Environmental Assessment 2016308-1

New suppliers that were screened using environmentalcriteria

Building a Responsibility Value Chain308-2

Negative environmental impacts in the supply chain andactions taken

Building a Responsibility Value ChainGRI 401: Employment 2016401-1New employee hires and employee turnoverKey Performance Indicators401-2

Benefits provided to full-time employees that are notprovided to temporary or part-time employees

Protecting Employees’ Rights and Interests401-3Parental leaveProtecting Employees’ Rights and InterestsGRI 402: Labor/Management Relations 2016402-1Minimum notice periods regarding operational changesProtecting Employees’ Rights and InterestsGRI 403: Occupational Health and Safety 2018403-1Occupational health and safety management systemStand Firm on the Frontline of Safety403-2

Hazard identification, risk assessment, and incidentinvestigation

Stable and Safe Production403-3Occupational health servicesStable and Safe Production403-4

Worker participation, consultation, and communication onoccupational health and safety

Stand Firm on the Frontline of Safety

Stable and Safe Production403-5Worker training on occupational health and safetyStable and Safe Production403-6Promotion of worker health

Protecting Employees’ Rights and Interests

Stable and Safe Production403-7

Prevention and mitigation of occupational health and safetyimpacts directly linked by business relationships

Stable and Safe Production403-8

Workers covered by an occupational health and safetymanagement system

Stand Firm on the Frontline of Safety403-9Work-related injuriesKey Performance403-10Work-related ill healthKey PerformanceGRI 404: Training and Education 2016404-1Average hours of training per year per employeeKey Performance

GRI StandardIndicator No.

GRI Standard IndicatorLocation/Note404-2

Programs for upgrading employee skills and transition

assistance programs

Construction of Talent Team404-3

Percentage of employees receiving regular performance andcareer development reviews

Construction of Talent TeamGRI 405: Diversity and Equal Opportunity 2016405-1Diversity of governance bodies and employeesProtecting Employees’ Rights and Interests405-2Ratio of basic salary and remuneration of women to menProtecting Employees’ Rights and InterestsGRI 406: Non-discrimination 2016406-1Incidents of discrimination and corrective actions takenProtecting Employees’ Rights and InterestsGRI 407: Freedom of Association and Collective Bargaining 2016407-1

Operations and suppliers in which the right to freedom ofassociation and collective bargaining may be at risk

Protecting Employees’ Rights and InterestsGRI 408: Child Labor 2016408-1

Operations and suppliers at significant risk for incidents ofchild labor

Protecting Employees’ Rights and InterestsGRI 409: Forced or Compulsory Labor 2016409-1

Operations and suppliers at significant risk for incidents offorced or compulsory labor

Protecting Employees’ Rights and InterestsGRI 413: Local Communities 2016413-1

Operations with local community engagement, impactassessments, and development programs

Not Applicable413-2

Operations with significant actual and potential negativeimpacts on local communities

Not ApplicableGRI 414: Supplier Social Assessment 2016414-1New suppliers that were screened using social criteriaBuilding a Responsibility Value Chain414-2

Negative social impacts in the supply chain and actionstaken

Building a Responsibility Value ChainGRI 415: Public Policy 2016415-1Political contributionsNot ApplicableGRI 416: Customer Health and Safety 2016416-1

Assessment of the health and safety impacts of product andservice categories

Stable and Safe Production416-2

Incidents of non-compliance concerning the health andsafety impacts of products and services

Stable and Safe ProductionGRI 417: Marketing and Labeling 2016417-1

Requirements for product and service information andlabeling

Delivering Premium Services

Securing Safety Delivery417-2

Incidents of non-compliance concerning product and serviceinformation and labeling

There were no violations involving product and

service information and labelling in 2024 in SF.

GRI StandardIndicator No.

GRI Standard IndicatorLocation/Note417-3

Incidents of non-compliance concerning marketing

communications

There were no breaches involving marketingcommunications in 2024 for SF.GRI 418: Customer Privacy 2016418-1

Substantiated complaints concerning breaches of customer

privacy and losses of customer data

Ensuring Information SecurityAddressing Climate Change3-3Management of material topicsAddressing Climate ChangeCircular Economy3-3Management of material topicsPromoting Circular EconomyGreen Packaging3-3Management of material topics

Promoting Circular Economy

Developing Sustainable PackagingEnvironmental Compliance Management3-3Management of material topicsPractice Green OperationRural Revitalization3-3Management of material topicsSustaining Commitments to Social WellbeingSocial Contribution3-3Management of material topicsSustaining Commitments to Social WellbeingInnovation-Driven Development3-3Management of material topicsPioneering Intelligent Logistics InnovationEthics in Science and Technology3-3Management of material topicsPioneering Intelligent Logistics InnovationSupply Chain Security and Resilience3-3Management of material topicsBuilding a Responsibility Value ChainEqual Treatment of Small and Medium-sized Enterprises (SMEs)3-3Management of material topicsBuilding a Responsibility Value ChainSafety Delivery and Transportation3-3Management of material topics

Stand Firm on the Frontline of Safety

Stable and Safe ProductionBuilding a Green and Intelligent Industrial Chain3-3Management of material topicsCreating Green Logistics

Sustainability Accounting Standards Board Index (SASB Content Index)

Sustainability Disclosure Topics & Accounting Metrics

TopicAccounting MetricCategoryCodeLocation

GreenhouseGas Emissions

Gross global Scope 1 emissionsQuantitativeTR-AF-110a.1

Key PerformanceIndicatorsDiscussion of long- and short-term strategy or planto manage Scope 1 emissions, emissions reductiontargets, and an analysis of performance against thosetargets

Discussionand Analysis

TR-AF-110a.2

AddressingClimate ChangeFuel consumed by (1) road transport, percentage (a)natural gas and (b) renewable, and (2) air transport,percentage (a) alternative and (b) sustainable

QuantitativeTR-AF-110a.3

Creating GreenLogisticsKey PerformanceIndicatorsAir Quality

Air emissions of the following pollutants: (1) NOx(excluding N2O), (2) SOx, and (3) particulate matter(PM10)

QuantitativeTR-AF-120a.1

Key PerformanceIndicatorsLabour Practices

Percentage of drivers classified as independentcontractors

QuantitativeTR-AF-310a.1Not ApplicableTotal amount of monetary losses as a result of legalproceedings associated with labour law violations

QuantitativeTR-AF-310a.2Not ApplicableEmployeeHealth & Safety

(1) Total recordable incident rate (TRIR) and (2)

fatality rate for (a) direct employees and (b) contractemployees

QuantitativeTR-AF-320a.1

Key PerformanceIndicatorsSupply ChainManagement

Percentage of carriers with BASIC percentiles abovethe FMCSA intervention threshold

QuantitativeTR-AF-430a.1Not ApplicableTotal greenhouse gas (GHG) footprint across transportmodes

QuantitativeTR-AF-430a.2Not Applicable

Accident& SafetyManagement

Description of implementation and outcomes of aSafety Management System

Discussion

and Analysis

TR-AF-540a.1

Stand Firm onthe Frontline ofSafetyNumber of aviation accidentsQuantitativeTR-AF-540a.2

Key PerformanceIndicatorsNumber of road accidents and incidentsQuantitativeTR-AF-540a.3Not ApplicableSafety Measurement System BASIC percentiles for:

(1) Unsafe Driving, (2) Hours-of-Service Compliance,

(3) Driver Fitness, (4) Controlled Substances/Alcohol,

(5) Vehicle Maintenance, and (6) Hazardous Materials

Compliance

QuantitativeTR-AF-540a.4Not ApplicableTable. Activity MetricsActivity MetricCategoryCodeLocationRevenue ton kilometres (RTK) for: (1) road transport and (2) air transport2QuantitativeTR-AF-000.ANot ApplicableLoad factor for: (1) road transport and (2) air transportQuantitativeTR-AF-000.BNot ApplicableNumber of employees, number of truck driversQuantitativeTR-AF-001.C

Key PerformanceIndicators

WE DELIVER AS PROMISED

Post code: 518057 Customer service hotline: 95338Website: http://www.sf-express.comAddress:TK Chuangzhi Tiandi Building, Keji South 1st Road,Nanshan District,Shenzhen, Guangdong Province, the PRC

S.F. Holding Co., Ltd.