Shenzhen International Prospect Sustainable Future by Promoting Low-carbon transformation and Participating in Public Welfare

Logistic Hubs PV Installation

According to the “Outline of the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and Vision 2035 of the People's Republic of China” (the “14th Five-Year Plan”), China will forge ahead with the construction of modern logistics system and acceleration of cold chain logistics and build around 120 national logistics hubs. Therefore, Shenzhen International Holdings Limited (“Shenzhen International” or “the Group”) actively promoted the adjustment, transformation and upgrading of the land functions of its logistics park project in the core urban center to contribute, and, at the same time, made great efforts to promote the development of green and intelligent ports and enhance the operational capabilities, contributing to the low-carbon transition.

Actively Participate in Green Projects and Cherish Environmental Resources

Attaching great importance to environmental protection and shouldering of social responsibilities, Shenzhen International had actively developed green projects, which was expected to realize low-carbon transformation soon through practical actions that demostrated the sustainable development concept upheld by the group to provide assistantce in long-term development. To achieve the goal of "carbon peaking and carbon neutrality", the Group cooperated with the State Power Investment Corporation Hangzhou New Energy Co., Ltd. to build an integrated on-roof photovoltaic power generation project in Hangzhou Integrated Logistics Hub. The project created a 5.6MW distributed photovoltaic power station with an average annual power generation of about 4 million to 5 million kWh on the 38,000-square-meter roof of four single-storey warehouses in the park, creating large amounts of clean energy. Besides, the office building in the first phase of the Qianhai project, Yidu Building, was officially certified by LEED-CS Platinum (the highest level of the LEED rating system ). The certification also proves that the Group attaches great importance to environmental protection and shouldering social responsibilities. It is estimated that 335,200 kWh of electricity can be saved every year during the whole life of the building. Apart from this, the energy management system of the Intelligent Park platform is also applied in this project, which is an important technical foundation to support the green building. Through the comprehensive coordination with the building automation control system and the data interaction with external companies, we strive to achieve the goal of 20% intelligent energy saving by artificial intelligence algorithms.

To reduce the emissions of greenhouse gases and air pollutants, Shenzhen International actively implements the strategy of “developing green logistics and building new and environmental-friendly logistics parks”. The Group is committed to developing the green construction of logistics parks and using energy-saving equipment, such as investing in constructing more than 520 charging piles in logistics parks (Shenzhen and other parts of China), among which the South China Logistics Park has effectively reduced 10,800 tons of carbon dioxide equivalent. During the four-year operation of the Kanghuai E-commerce Center, about 2 billion items have been distributed and delivered, reducing carbon emissions by about 28,000 tons compared with the traditional operation practices. Meanwhile, the Group actively builds green warehouses, such as Shijiazhuang Zhengding Green Port and Shijiazhuang Shenzhen International A5 and A7 Warehouses, all of which have reached the national first-class three-star green warehouse standard, which is the highest level of green warehouses. Zhengding Smart Port has built over 30,000 square meters of smart cold chain logistics, focusing on the development of photovoltaic power generation, ground source heat pump and other technologies is an essential part of the green and low-carbon park.

First cross-boundary cargo train carrying anti-epidemic supplies arrives at Hong Kong

Building Harmonious Community through Fighting the Epidemic

Shenzhen International adheres to sustainable development by actively participating in public welfare activities to contribute to the society. As of late 2021, the Group reached agreements with the farmers in the special projects in helping poverty alleviation on the transfer of 1,000 mu of land. The village collective will have an income of RMB50,000 annually. Besides, as COVID-19 continued to take its toll in the past year, a grave challenge to COVID-19 prevention was posed to the logistics and port businesses. To better protect employees and ensure the smooth flow of logistics, Shenzhen International had adopted strict pandemic prevention measures to minimize the risk of virus transmission by formulating guidance documents including the Pandemic Prevention and Control Emergency Response Plan at all levels to supervise the implementation of safety production and epidemic prevention measures.

Shenzhen International cooperated with all localities in pandemic prevention in 2021. It completed coordination and facilities construction with acceleration by fulfilling pandemic prevention requirements, maintaining normal business operations, and ensuring regional logistics stability. With rich experience and superb expertise in logistics park operations, the Group responded to take the initiative to connect with all levels of the government action and met the needs of multiple parties upon the fifth wave of the COVID-19 outbreak in Hong Kong. To ease the pressure on cross-border freight transportation, the Group undertook the construction of four cross-border connecting stations in Shenzhen, covering a total area of 265,000 square meters. Over 4,000

border-crossing vehicles were received daily, accounting for about 43.9% of the total in Shenzhen. This project ensured the safety and smooth flow of the "supply lifeline to Hong Kong". Meanwhile, The Group cooperated with the special cargo train to Hong Kong with Sinotrans. Jointly with Sinotrans' railway department, the Group also completed coordination work in a limited amount of time to ensure the smooth launch of the cross-border cargo train, thanks to the Group's extensive experience in logistics.

As affirmation from society, the Group's work had been rated as one of the top 10 best rural revitalization stories at the the Blue Book on the Social Value of State-owned Enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area (2021). The blue book takes samples from the state-owned enterprises in the Greater Bay Area for the first-ever research on the social value of state-owned enterprises. It comprehensively introduces how the state-owned enterprises in the Greater Bay Area fulfilled their social responsibilities and enhanced their social value.

A Sustainable Future

In 2022, Shenzhen International will seize the opportunities that come with the development of the Greater Bay Area, set its “14th FiveYear” plan as its development goal, bolster confidence, support urban development, boldly push through reform and play its part in achieving national prosperity, rejuvenation and well-being. The Group will further implement the existing sustainable development strategy, put in more human resources and resources for green development, find the right direction for the low-carbon transition of its port and logistics parks and build an even better future.