I. Project Overview

Hebei Huadian Caofeidian Storage & Transportation Co., Ltd. was established in June 2009. It is a specialized coal transshipment terminal enterprise in Northern China, under the controlling interest of Huadian Coal Industry Group Co., Ltd. As a core hub for the "North-to-South Coal Transport" initiative, the company operates two 100,000-ton class, two 70,000-ton class, and one 50,000-ton class ship-loading berths. With a storage capacity of 3.745 million tons and an annual designed ship-loading capacity reaching 50 million tons, the company fulfills vital functions in facilitating the external transport of coal for China Huadian Corporation and ensuring coal supply security for power plants in Southern China.

After more than a decade of development, Caofeidian Storage & Transportation has established a complete industrial chain integrating coal handling, storage, and transshipment, becoming a critical node in safeguarding national energy security and stabilizing regional coal supplies. In January 2025, the company successfully passed the evaluation for a "Four-Star China Green Port" rating, becoming one of the first dry bulk cargo terminal enterprises in the Caofeidian Port Area to receive this certification. This achievement signifies that the company has attained an industry-leading level in terms of green development and operational management.

II. Core Initiatives and Achievements

(I) Consolidating the Foundation of Safety: Building an Inherently Safe Port

Caofeidian Storage & Transportation has consistently regarded safe production as the lifeblood of its corporate development...

...lines, establishing a multi-tiered, comprehensive safety management system. Adopting "strengthening foundations and consolidating roots" as its guiding principle, the company has established a routine mechanism for identifying potential hazards. It conducts targeted inspections during critical periods and on key equipment, having cumulatively identified and rectified over a thousand safety hazards of various types. Concurrently, the company organizes safety regulation examinations for all employees—including the specialized testing for "three categories of personnel"—thereby forging a tripartite safety defense network encompassing "personnel, equipment, and systems," and achieving full-process control over outsourced operations. As of June 2025, the company has achieved 3,926 consecutive days of safe production, with all its production links fully meeting the requirements of the national standardized safety production management system. In responding to extreme weather conditions and emergency incidents, the safety management system has played a pivotal role, enabling the successful completion of multiple emergency supply assurance missions without a single safety-related liability accident occurring. (II) Advancing Green Transformation and Establishing a New Paradigm for Ecological and Environmental Protection As a pioneer in green port development, Caofeidian Storage & Transportation formulated its *Green Port Construction Plan (2021–2025)* in 2021, designating pollution reduction and carbon emission reduction as its core development strategy. The company has invested in and constructed environmental protection facilities—such as enclosed coal storage warehouses—utilizing advanced construction techniques involving segmented hoisting and synchronous sliding to effectively suppress the dispersion of coal dust, thereby achieving [optimized] coal storage......environmental protection controls throughout the entire storage process.

In January 2025, the Company successfully passed the China Ports & Harbours Association's "Four-Star Green Port" assessment, becoming the first dry bulk terminal enterprise in the Caofeidian Port Area to receive this certification. By establishing a "Standardized Ecological and Environmental Management System" and implementing dynamic controls for environmental risks, the Company has reduced pollutant emission concentrations to levels significantly below national standards, resulting in a marked improvement in the quality of the regional ecological environment.

(III) Strengthening Coordination and Collaboration to Enhance Supply Chain Operational Efficiency

Caofeidian Storage & Transportation continues to refine its operational mechanism—characterized by "interactive coordination across mining, washing, and sales; synergy among road, port, and shipping sectors; and seamless alignment of production, transportation, and demand"—to forge a highly efficient and collaborative coal supply assurance system. The Company has successively established logistical hub connections with four collection and distribution stations—including Dabaodang and Hantaichuanbei—and has expanded and deepened the capabilities of four terminal storage and distribution bases, including those at Caofeidian Storage & Transportation and Huanghua Port. Furthermore, it has efficiently utilized multimodal transport models—such as "road-to-rail" conversion and "water-rail intermodal transport"—to facilitate the effective implementation of the "mutual assurance of volume and price" policy.

During the 2024 mission to ensure the supply of thermal coal for power generation, the Company completed the medium-to-long-term contract quota of 42.97 million tons—mandated by the National Development and Reform Commission (NDRC)—seven days ahead of schedule, representing a year-on-year increase of 11.74%.

...%, setting an all-time historical record. Throughout the year, Caofeidian Storage & Transportation broke its single-day railcar unloading record three times and its single-day vessel loading record twice. The cumulative volume of self-produced coal entering the port reached 12 million tons; specifically, three scheduled liner routes transported 5 million tons of self-produced coal from the Bulian'gou Company. Furthermore, the company's coal supply support for coastal and riverside power plants within the corporate system exceeded 9 million tons, resulting in cumulative logistics cost savings of over 50 million yuan for these power plants. (IV) Deepening Lean Management to Energize High-Quality Development The Company has thoroughly implemented lean management philosophies, establishing a "six-in-one" operational framework designed to enhance quality and efficiency. Centered on refined cost control, this framework achieves an organic integration of cost reduction, efficiency gains, and overall profitability improvement. Through strengthened capital management, the comprehensive financing cost rate in the first half of the year dropped by 77 basis points (BP) compared to the beginning of the year, while financial expenses decreased by 22.90% year-on-year. The Company actively secured policy dividends—such as additional tax deductions for R&D expenses and exemptions from land use taxes—thereby effectively bolstering corporate profitability. Moreover, by leveraging dynamic tracking and monitoring of key performance indicators, the Company constructed a full-lifecycle cost early-warning and response system, ensuring the precise and effective implementation of cost-control measures. In the first half of 2025, Caofeidian Storage & Transportation achieved its "double-over-half" targets—reaching a vessel loading volume of 17.3712 million tons and meeting over half of its annual profit goal—six days ahead of schedule. This accomplishment demonstrates the Company's robust operational resilience and dynamic vitality for future development.(V) Upholding Party Building Leadership to Forge a United Force for Overcoming Challenges The Company has steadfastly implemented initiatives guided by Party building, utilizing various methods—including Party Committee meetings, theoretical study center group sessions, and the "Three Meetings and One Class" system—to thoroughly implement the spirit of the Central Committee's Eight-Point Regulations and ensure comprehensive coverage of study and education for all Party members. The leadership team has taken the lead in conducting self-examination and rectification based on specific checklists of issues, thereby providing a robust disciplinary guarantee for the enterprise's development. Concurrently, the Company has vigorously advanced the "Four Forces and Four Drives" Party building initiative to achieve excellence, engaging in joint Party building efforts with entities such as Fujian Storage & Transportation and Huayuanxing Company. It has also strengthened the development of "Post-Area-Team" Party organizations, fostering the deep integration of Party building work with production and business operations. By embodying the "Huadian Spirit of Endeavor" culture and organizing diverse thematic activities, the Company has ignited the work enthusiasm and innovative vitality of all employees, forging a dedicated team capable of tackling tough battles and securing victories. III. Project Experiences and Insights (I) Upholding Mission and Responsibility to Fortify the Defense Line of Energy Security Caofeidian Storage & Transportation has consistently kept its political mission of ensuring energy supply at the forefront of its mind, regarding the safeguarding of national energy security as the core of its corporate development......the core objective of its development. In the face of challenges such as coal market volatility and extreme weather conditions, the Company took proactive measures and responded swiftly. It fully leveraged the strategic role of its self-produced coal—serving as a "ballast for volume," a "stabilizer for price," and an "emergency response team for logistics"—to provide reliable coal supplies to nearly one hundred power plants and heating enterprises nationwide, thereby demonstrating the sense of responsibility and commitment inherent in a central state-owned enterprise. (II) Embracing Green Principles and Promoting Sustainable Development Confronted with the critical imperative of ecological environmental protection, the Company remains steadfast in advancing green development in tandem with its production and operational activities. Through technological innovation and management upgrades, it has achieved a win-win outcome that delivers both economic returns and ecological benefits. The successful establishment of a "Four-Star Green Port" provides the port industry with replicable and scalable experience for its green transformation, proving that green development is not merely a social responsibility but, more importantly, a core competitive advantage for an enterprise's high-quality growth. (III) Strengthening Collaborative Innovation and Enhancing Supply Chain Competitiveness By establishing an integrated collaborative system encompassing "mining, transportation, storage, and sales," Caofeidian Storage & Transportation has dismantled the barriers between various links of the supply chain, thereby achieving optimized resource allocation and efficient circulation. The innovative application of a "quasi-liner" mechanism and multimodal transport models has not only enhanced......enhanced supply efficiency and reduced logistics costs, thereby creating greater value for upstream and downstream enterprises within the industrial chain and driving an overall improvement in the industry's competitiveness.

(IV) Deepening Lean Management to Unleash Internal Corporate Vitality

The comprehensive implementation of lean management has enabled the company to transition from extensive, broad-stroke management to refined, meticulous management practices. Through measures such as cost control, the leveraging of policy dividends, and process optimization, the company has maintained a distinct cost advantage and sustained profit growth amidst market competition—demonstrating that management innovation serves as a critical pillar for enterprises in navigating market challenges and achieving sustainable development.

IV. Future Outlook

Looking ahead, Caofeidian Storage & Transportation will continue to be guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. We will thoroughly implement national energy strategies and, centering on the development objectives of "Safety, Greenness, Efficiency, and Intelligence," continuously advance the intelligent transformation of our port facilities and accelerate the construction of a "smart port." We will deepen the substance of our "green port" initiatives and explore pathways toward achieving carbon peaking and carbon neutrality. Furthermore, we will strengthen collaboration across the industrial chain and expand our regional coal supply network. Guided by Party building, we will consolidate our collective efforts for development, striving with full commitment to build a modern coal storage and transportation hub that is a domestic leader and a world-class benchmark—thereby making new and greater contributions to safeguarding national energy security and driving the high-quality development of the energy sector.