Qinhuangdao Port : CORPORATE SOCIAL RESPONSIBILITY REPORT 2020

ABOUT THIS REPORT

This is the Corporate Social Responsibility Report (or Sustainability Report) published by Qinhuangdao Port Co., Ltd. for the fifth consecutive year to communicate with all the stakeholders about the Company's social responsibility concepts, work initiatives and performances, and respond to their needs.

1. RANGE OF PERIOD

From 1 January 2020 to 31 December 2020. The coverage of certain statements and data may go beyond the aforesaid period.

2. SCOPE OF REPORTING

The report covers the headquarters, internal departments and all branches and subsidiaries of Qinhuangdao Port Co., Ltd.

3. SOURCE OF DATA

The financial data in the report are extracted from the 2020 financial report of Qinhuangdao Port Co., Ltd. which is independently audited by Ernst & Young Hua Ming LLP; and other data are derived from relevant systematic statistics of the Company.

4. REFERENCES OF PREPARATION

The report is prepared in accordance with the Stock Exchange of Hong Kong Limited (the HKEx) Appendix 27 Environmental, Social and Governance Reporting Guide of the Rules Governing the Listing of Securities (Listing Rules), the Guidelines on Environmental Information Disclosure by Companies Listed on the Shanghai Stock Exchange .

5. RESPONSE TO THE PRINCIPLE OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTING GUIDE

Importance: In order to prepare this report, the Company conducted a materiality assessment procedure to determine the truthfulness and accuracy of the contents disclosed in this report as well as the contents of each subject area. Material analysis results of 2020 are presented in the "Materiality Assessment" section.

Quantification: quantitative data was disclosed in the report for both environmental and social categories to demonstrate indicator and performance.

Balance: This report objectively discloses positive and negative information to ensure balance of the contents, of which negative indicators such as the number of corruption lawsuits and casualties of employees were disclosed.

Consistency: The indicators disclosed in this report disclose as much as possible the comparative data for two consecutive years based on actual management, helping readers to better understand the trend of indicators. Unless otherwise stated, the data disclosed in this report are based on the unified information collection process and working mechanism established by the Company to ensure that the data is comparable year after year.

6. DESCRIPTION OF SPECIFICATIONS

For the convenience of expression, "Qinhuangdao Port Co., Ltd." is also referred to as "we", "QHD Port" and "the Company".

7. ACCESS TO THE REPORT

You may browse or download the Chinese version of this report from the website of Shanghai Stock Exchange, or the Chinese and English versions from the website of Hong Kong Stock Exchange.

CHAIRMAN'S STATEMENT

Dear readers,

2020 was an extraordinary and memorable year. Despite the severity of the COVID-19 pandemic and arduous reform and development tasks, the Company attached equal importance to pandemic prevention, production and operation. While focusing on marketing, expanding the market, optimising services and improving efficiency, the Company enhanced management and control through improving its mechanism, shored up weaknesses through catching up with advanced companies and guaranteed development quality through management elevation. With digital empowerment leading development and with the target of building a domestic leading intelligent port enterprise, the Company practiced the concept of green development, displayed the undertaking of a state-owned enterprise (SOE) and delivered satisfactory results.

Responding to national strategies and expanding development patterns. The Company followed key national development strategies and actively integrated new development concepts and patterns. Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Company deeply implemented the guiding principles of all plenary sessions of the ninth session of the provincial Party committee and firmly seized the coordinated development of the Beijing-Tianjin-Hebeiregion, the planning on the construction of Xiong'an New Area, the joint construction of the "Belt and Road" initiatives, the construction of pilot free trade zones and other significant opportunities. While focusing on the corporate development positioning with the target of building a world-leadingindependent port operator for major dry bulk cargoes and guaranteeing national energy transportation and supply, the Company promoted the coordinated development of the Beijing-Tianjin-Hebeiregion and the construction of world- class ports in the Bohai Rim region, facilitated the transformation and upgrading of ports and strived to be a pioneer in the high- quality development of the coastal economic belt and the deep integration of port, industry and city. In 2020, the Company recorded a cargoes throughput capacity of 376 million tonnes.

Encouraging innovative research and building intelligent ports. The Company attaches great importance to technological innovation and actively promotes the progress of the industry. As one of the five port demonstration enterprises under the Ministry of Transport undertaking the Beidou demonstration project, the Company fully advanced the intelligent port demonstration project and other key projects to promote digital construction. It actively explored the application of cloud computing, big data, artificial intelligence and other modern technologies in the development of ports and improved the overall logistic efficiency at ports and customer experience to facilitate the digitalisation, informationisation and intelligentialisation of the major comprehensive trade port.

Practicing green development and guaranteeing safe ports. The Company places a high value on the construction of green and ecological ports and facilitates systematic and standardised environment management. It actively constructs "green hubs" and "ecological harbors" and vigorously improves the terrestrial and marine ecology and environment of ports. Meanwhile, the Company highly values safety production, firmly establishes safety development concepts and fully implements responsibilities of entities on safety production. It carries out the construction of the "dual control" mechanism on safety production and standardised safety production to prevent and dissolve significant safety risks and endeavors to build an intrinsically safe port.

Caring for staff development and actively returning to society. Following the principle of serving employees with heart and soul, we actively safeguard employees' rights and interests and establish perfect training systems to boost staff development. We care for employees' life, aid impoverished employees and guarantee the sustainable development of the Company's human resources. Meanwhile, we continued to perform social responsibilities, advance the undertaking of an enterprise and performed the responsibilities of corporate residents to create value for the society by leveraging on its own professionalism and resources. We implemented targeted poverty alleviation, fully supported local government in fighting against the pandemic and devoted to cultural practice and volunteering services in the new times to pass love and warmth with practical actions.

Seizing the moment to take actions with the blueprint drawn. During the new journey, we will further leverage on the advantages of ports, optimise and integrate logistic resources of ports, upgrade intelligent logistic platforms and green intelligent ports and construct the port logistic ecosystem while focusing on the efficient development of the principal businesses of ports. We will join hands with stakeholders in promoting the sustainable development of the Company with higher quality and efficiency and strive to achieve the targets and tasks during the "14th Five-year" Plan period.

Cao Ziyu

Party Committee Secretary and Chairman of QHD Port

COMPANY PROFILE

As a subsidiary of Hebei Port Group Co., Ltd. (河北港口集團有限公司), QHD Port is the world's leading independent port operator for major dry bulk cargoes. QHD Port was listed on the Main Board of The Stock Exchange of Hong Kong Limited (hereinafter referred to as the "Stock Exchange") and Shanghai Stock Exchange (hereinafter referred to as the "SSE") in 2013 and 2017 respectively, and became the first state-owned enterprise in Hebei Province to lay out the A+H share dual capital platform. QHD Port mainly operates Qinhuangdao Port, Tangshan Caofeidian Port Zone and Cangzhou Huanghua Port Zone. The Company is mainly engaged in the business of stevedoring, stacking, warehousing, transportation and logistics services, and handles various types of cargoes including coal, metal ores, oil and liquefied chemicals, containers and general cargoes, with the throughput capacity kept above 300 million tonnes in recent years. Qinhuangdao Port is a global leading independent coal port and a dry bulk cargo port and a major hub port in the "North-South coal transportation" in China. Caofeidian Port Zone is a key transit port for ores in northern China. Cangzhou Huanghua Port Zone is an important emerging port in coastal areas in Hebei Province and is known as "a new channel for bridging the European and Asian Continents".

Facing significant development opportunities from the coordinated development of the Beijing-Tianjin-Hebei Region, the "Belt and Road" initiatives and the construction of the Xiong'an New Area in the future, QHD Port will leverage on the geographical advantage and experience in mature and efficient port operation and management, and adhere to the overall development concept of "stronger and better, transformation and upgrading, improving quality and efficiency, driven by innovation and achieving win-win in harmony", in order to let the company become a port industrial cluster operator of sound governance system, strong competitive advantage and leading economic benefit, combining with the roles of port operator, integrated logistics service provider and capital operator.