SITC International : 2021 Environmental, Social and Governance Report

(Incorporated in the Cayman Islands with limited liability)

Stock Code: 1308

2021

Environmental, Social and

Governance Report

2021 ENVIRONMENTAL, SOCIAL About This Report

AND GOVERNANCE REPORT OF

SITC

About This Report 1

About SITC 2

Chairman's Message 7

Corporate Governance 8

Responsible Operation 13 Energy Conservation and

Environmental Protection 25

Harmonious Development 35

Outlook 49 Appendix I: Independent

Verification

Statement 50

Appendix II: HKEX ESG

Reporting

Guide Index 51

Appendix III: GRI Content Index 54

ii

About This Report

SITC International Holdings Company Limited has released the "Social Responsibility Disclosure Report" each year since 2014, which has been changed to the "Environmental, Social and Governance Report" (the "ESG Report") since 2016, which subsequently has been published separately from its annual report since 2019.

This report discloses the environmental, social and governance ("ESG") information of SITC under the principles of objectivity, standardization, transparency and comprehensiveness. It is intended to communicate with stakeholders about corporate sustainable development concepts, actions and performance in a full and frank manner, and make a systematic response to sustainable development issues concerned by stakeholders.

This report is prepared also in accordance with the 'core' scheme of the Global Reporting Initiative Standard (GRI).

All financial data in this report is extracted from the financial reports of the Company. Unless otherwise specified, all amounts stated in this report are denominated in USD.

Independent Verification

The information disclosed in this report has been verified by Hong Kong Quality Assurance Agency, an independent third party, to ensure its accuracy and reliability. The report verification statement is set out on page 50 of this report.

Scope and Reporting Cycle of the Report

This report covers the period from 1 January 2021 to 31 December 2021. To be more systematic, this report is partially retrospective to previous years, and the reporting boundary has no significant change as compared to that for the financial year ended 31 December 2020.

Unless otherwise specified, all cases and data in this report are derived from the wholly-owned branch companies, subsidiaries and joint ventures under de facto control of SITC.

Last reporting period: May 2020

Reporting cycle: once a year

Basis for Preparation

This report is prepared in compliance with the principles of materiality, quantitative, balance and consistency as set out in the Environmental, Social and Governance Reporting Guide (the "ESG Reporting Guide") contained in Appendix 27 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. This report has complied with all mandatory disclosures requirements and "comply or explain" provisions.

Commitment of this Report

The board of directors of the Company (the "Board") warrants that the report approved by the Board is free from any false records and misleading statements.

Explanations on Abbreviated Names

For the sake of convenience in expression and reading, "SITC International Holdings Company Limited" is referred to as "SITC" or the "Company" or "we" or "our" or "us" and, together with its subsidiaries, collectively referred to as the "Group" in this report.

Access to This Report and Contact Information

This report is released in both Chinese and English versions, which are available on the website of SITC (www.sitc.com) and the website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") (www.hkexnews.hk).

Should you have any question about this report, please feel free to contact us:

SITC International Holdings Company Limited Address: 21/F, World Trade Centre,

280 Gloucester Road,

Causeway Bay, Hong Kong

Telephone: [phone]

Email:[e-mail]

About SITC

DIRECTORS

Executive Directors YANG Shaopeng (Chairman) YANG Xianxiang

(Vice-Chairman and Chief Executive Officer)

LIU Kecheng

XUE Mingyuan LAI Zhiyong

Non-Executive Director YANG Xin

Independent Non-Executive Directors LIU Ka Ying, Rebecca

TSE Siu Ngan

HU Mantian (Mandy)

BOARD COMMITTEES

Audit Committee

LIU Ka Ying, Rebecca (Chairman) TSE Siu Ngan

HU Mantian (Mandy) YANG Xin

Sustainable Development Committee YANG Xianxiang (Chairman)

LIU Kecheng

XUE Mingyuan LAI Zhiyong

Risk Management Committee TSE Siu Ngan (Chairman)

YANG Xianxiang

LIU Ka Ying, Rebecca

HU Mantian (Mandy)

CORPORATE HEADQUARTER

21/F, World Trade Centre

280 Gloucester Road Causeway Bay Hong Kong

AUTHORIZED REPRESENTATIVES

LIU Kecheng

XUE Peng

COMPANY SECRETARY

Remuneration Committee TSE Siu Ngan (Chairman) YANG Xianxiang

LIU Ka Ying, Rebecca

Nomination Committee YANG Shaopeng (Chairman) TSE Siu Ngan

HU Mantian (Mandy)

Disclosure Committee YANG Xianxiang (Chairman) LIU Kecheng

XUE Mingyuan LAI Zhiyong

XUE Peng (FCG, HKFCG)

About SITC

SITC is an Asia's leading shipping logistics company that provides integrated transportation and logistics solutions. As at 31 December 2021, we ranked the 16th among international container shipping companies in terms of shipping capacity. We focus exclusively on servicing the Asia trade market, which is the largest in the world and one of the fastest growing market in terms of shipping volume, according to Drewry Maritime Services (Asia) Pte Ltd, an independent industry consultant.

As of 31 December 2021, the Group operated 74 trade lanes, including 12 trade lanes through joint services and 24 trade lanes through container slot exchange arrangements. These trade lanes and land-based integrated logistics business network covered 74 major ports and cities in the Mainland China, Japan, Korea, Taiwan, Hong Kong, Vietnam, Thailand, the Philippines, Cambodia, Indonesia, Singapore, Malaysia, Brunei, Bengal, Myanmar and Russia. As of 31 December 2021, the Group operated a fleet of 96 vessels with a total capacity of 143,115 TEU, comprised of 68 self-owned (103,663 TEU) and 28 chartered vessels (39,452 TEU), with an average age of 11.7 years. In addition, the Group also operated (including through joint ventures) approximately 1,300,000 m2 of depot and 133,000 m2 of warehousing space.

The following map illustrates the Asia container shipping routes (including trade lanes operated through joint services and container slot exchange arrangements) and shipping logistics service network of the Group as of 31 December 2021:

Qinhuangdao

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