The Board has overall responsibility for the long term sustainability and environmental, social and governance strategies which support growth and enhance value for the business and its stakeholders, as well as contribution to the environment and the community growing.

We are committed to operate our business in an environmentally and socially responsible manner. When setting the standards, we consider the needs and requirements of the business, our stakeholders and relevant guidelines. We discuss and review the risks and opportunities, performance, progress, goals and targets regularly to monitor our environmental, social and governance performance, related issues and potential risks.

The Group's businesses and functional departments also help to formulate relevant strategies in their respective areas and monitor the effectiveness of the implementation in accordance with the sustainable development strategies and objectives suggested by the Board. Reviews are also arranged regularly to evaluate the effectiveness of current policies and procedures and develop appropriate solutions to improve the overall performance of environmental, social and governance policies.

The possible environment impact may include air pollutants emissions, ballast water discharges and oil pollution in environmental disaster. By maintaining operational safety and providing quality training of our seafarers in compliance with applicable environmental laws and regulations, we believe that the operation of our vessels is in substantial compliance with applicable environmental laws and regulations. To achieve this, we strive to comply with all applicable rules and regulations with our best efforts in shipping operation as well as in our daily working environment to minimize any adverse impact to the environment.

CO2 and GHG Emissions

The International Maritime Organization (“IMO”) adopted an Initial Strategy on the reduction of emissions, both CO2 emission and GHG emission from ships. The strategy represents a framework for the industry, setting out a vision for international shipping, the levels of ambitions to reduce emissions and guiding principles.

IMO adopted a revised 2023 IMO GHG Strategy on reducing emissions, identifying levels of ambitions for the sector including the reduction of CO2 emissions per transport work, as an average across the industry, by at least 40% by 2030, compared to 2008. The 2023 IMO GHG Strategy also includes a new level of ambition relating to the uptake of zero or near-zero GHG emission technologies, fuels or energy sources which represent at least 5% to 10% of the energy used by international shipping by 2030. The strategy also identifies the reduction of the total annual GHG emissions from international shipping by at least 20% to 30% by 2030, and by at least 70% to 80% by 2040, compared to 2008.

We support the IMO's targets as our short term and long term targets of decarbonization.

Starting from 2024, the European Union's (“EU”) Emissions Trading System (“ETS”) extended to cover CO2 emissions from maritime transport entering EU ports. Shipping companies have to purchase and use EU ETS emission allowances for each tonne of reported CO2 emissions. We believe ETS inclusion of maritime transport will drive a faster reduction of emissions among the industry. The Group will strive as much as possible to reduce emissions to enjoy the lowest carbon price.

Acting as a participant in the marine market, the Group always concerns the issue of increasing GHG and consumption of fossil fuels. The Group continues to implement its fleet renewal strategy, with a focus on enhancing operational efficiency and reducing environmental impact. Older vessels are being replaced with modern, fuel-efficient ships that align with global sustainability objectives. This proactive approach not only strengthens fleet performance but also underscores our commitment to environmentally responsible shipping. As at 31 December 2025, the Group had eighteen owned vessels. We ensure our owned fleet be equipped with proven green and energy efficient equipment and technologies to minimize the emission of toxic pollutants.

Energy efficiency operational indicator (“EEOI”)

2025: the average EEOI of the fleet is about 7.52 grammes CO2 / MT.Mile

2024: the average EEOI of the fleet is about 9.48 grammes CO2 / MT.Mile

Our fleet's carbon intensity, EEOI of 2025 decreased by about 1.96 grammes from the EEOI of 2024, representing a decrease of 20.7% as compared to 2024. The decrease was mainly due to fewer ballast voyages and longer laden voyages arranged in 2025 as compared to the year 2024, along with improved efficiency in maximizing load capacity for each voyage.

Sulphur oxides (SOx) and nitrogen oxides (NOx) are air pollutants produced when vessel engines burn fossil fuel. SOx comes mainly from sulfur in the fuel and can lead to acid rain and contribute to tiny airborne particles that harm people's lungs. To limit SOx, international rules cap sulphur in marine fuel — broadly at 0.50% and as low as 0.10% in Emission Control Areas. NOx emissions are controlled by engine standards that depend on when a vessel was built and where it operates. Newer vessels must meet stricter NOx limits, especially when sailing in special NOx control areas; vessels engines can meet these limits using technologies such as selective catalytic reduction or exhaust gas recirculation. Our company ensures compliance by sourcing compliant fuel, maintaining appropriate engine certifications and technical files, and following established operation and maintenance practices. These measures protect the environment and public health while supporting safe, regulatory-compliant operations across our fleet.

The fuel oil consumption and the corresponding CO2 emission, calculated under IMO's standard, of the fleet are as follows:

Fuel oil consumption:

2025: Fuel oil consumption – 111,892 metric tonnes

2024: Fuel oil consumption – 117,068 metric tonnes

Corresponding CO2 emission:

2025: CO2 emission – 348,810 metric tonnes

2024: CO2 emission – 364,884 metric tonnes

Achieve decarbonization

In order to meet the short term and long term target of decarbonization, a mix of design, technical, operational measures and innovative measures are through below (i) to (v):

(i) Calculation and verification energy efficiency existing ship index (“EEXI”)

(ii) Compliance of energy efficiency design index for newbuilding ship energy efficiency (“EEDI”)

We have implemented the Engine Power Limitation for those vessels which have not met the EEXI requirement. We believe that it is the first step and the fastest way to lower the emissions. We try to make our vessels more efficient by reducing the amount of energy needed to propel them through the water. Propeller boss cap fins and propeller duct have been installed on our vessels. We also switch to using silicon anti-fouling paints and deploying de-rated main engines to our vessels in order to maintain the speeds of our vessels but with less fuel consumption.

Implementing operational performance techniques brings significant advantages to our fleet by combining tiny improvements. Propeller polishing and hull cleaning are scheduled periodically for our vessels for a smoother propel in the water. We optimize our fleet engine by implementing weather routing, optimization of ballast and trim, optimized voyage planning, usage of fuel oil additives, and optimum settings of fuel oil purifiers. We believe small improvements can add up to substantial fuel savings.

Four newbuildings with modern eco-design and complied EEDI were ordered in 2025, which to be delivered in 2028.

(iii) Carbon intensity indicator (“CII”)

CII gives vessels an annual rating on scale of A to E, with A being the least carbon intensive. The rating measures how efficiently a vessel transports goods and is given in grams of CO2 emitted per cargo-carrying capacity and nautical mile. A vessel rated D for three consecutive years, or rated E for a particular year, will need to develop a work plan of corrective actions.

It became mandatory for all vessels to calculate their CII rating to measure the annual operational emissions in 2023. Our fleet has joined the Data Collection and Reporting System since 2019 which enables data to be analyzed and verified by RINA Services S.p.A. (“RINA”). The official evaluation results of our fleet were yet to be released, however, under our estimation, a number of our vessels will be getting rated D or below on CII. These vessels have been put through a series of planned works as mentioned to improve the CII rating. We have consistently delivered additional features to support CII monitoring, aiming to achieve a rating of C or above for all of our vessels on CII.

(iv) Ship energy efficiency management plan (“SEEMP”)

The vessels' SEEMP plans are approved by RINA and certified in compliance with IMO Resolutions.

CO2 emission reduction – since February 2013, the Group has adopted the SEEMP, a plan that individual vessel can follow and improve each vessel's energy efficiency and reduction in fuel consumption through a series of procedures and efforts.

Our vessels adopted IMO Data Collection System on fuel consumption to allow us monitor and improve fuel efficiency and mitigate emissions. The Group implemented of initial SEEMP in 2013, adopted SEEMP Part II in 2021 and SEEMP Part III in 2022. SEEMP Part III also complies with the latest requirement to provide information for assessing the operation of the CII of the vessels. SEEMP Part II and III have also been updated in 2025 according to IMO requirements. For SEEMP Part II, the data collection requirements have been refined. For SEEMP Part III, the long term decarbonization targets have been established.

(v) For newbuilding projects, we may choose the most energy efficient design and will include the possibility of using dual fuel engines.

SEEMP improves each vessel's energy efficiency through a series of procedures and efforts. We take below steps:

(1) Planning

(2) Implementation

(3) Monitoring

(4) Self-evaluation and Improvement

Low sulphur oil

Since 2020 our vessels have operated on heavy fuel oil with a maximum sulphur content of 0.50% in line with the IMO 2020 Sulphur Cap. In designated regional emission control areas, including China Emission Control Areas, we switch to ultra‑low sulphur fuel oil with a maximum sulphur content of 0.10% to meet local requirements and minimize harmful emissions while optimizing fuel use.

Fuel oil consumption:

2025: 0.5% low sulphur content heavy fuel oil consumption – 108,112 metric tonnes

2024: 0.5% low sulphur content heavy fuel oil consumption – 114,125 metric tonnes

2025: 0.1% ultra-low sulphur content fuel oil consumption – 3,780 metric tonnes

2024: 0.1% ultra-low sulphur content fuel oil consumption – 2,943 metric tonnes

Hazardous and non-hazardous waste produced

Waste from our vessels mainly included garbage and food waste which are trivial and not hazardous. These wastes are disposed of by incineration, shore collection and other means according to The International Convention for the Prevention of Pollution from ships (“MARPOL”) Annex V and local requirements.

We were committed to operate our vessels in compliance with MARPOL regulations pertaining to hazardous ozone depleting substances; and there was no material marine waste discharge or environment pollution incidents happened in 2025 and 2024.

Garbage and waste management plan

The Group implements garbage and waste management plan for all vessels. All vessels are equipped with colored recycle bins for garbage sorting. It is aimed to dispose garbage and waste in a diversified way ashore. The purpose is not only to reduce the level of waste but also have economic benefits to the Group. The less garbage disposed; the less wastage charged by each local port when the ship reaches that port when discharge.

Energy consumption

The Group's main energy consumption comes from direct energy consumption of fuel used by owned vessels and indirect energy consumption from purchased electricity.

Water consumption

Fresh water consumption represents the water consumed onboard, mainly for the use of boiler, machinery cooling and deck and hold cleaning is produced from the vessel's own desalination plants on board and running on waste heat of engines. This reduces the need to source fresh water from ashore and the consumption of natural water. Potable water is consumed for drinking, cooking and other domestic purposes.

Water consumption remained approximately 6 metric tonnes per vessel per day in both 2025 and 2024.

2025: Total fresh water consumption – 52,560 metric tonnes

2024: Total fresh water consumption – 54,750 metric tonnes

In order to reduce the use of water resources, we keep good maintenance on boilers and other equipment that use fresh water and also ensure that there is no leakage of water. Water log has been used for recording the usage of daily fresh water and locating leakage when abnormal consumption was found. On the other hand, we also educate seafarers to use water in a frugal way. We encourage seafarers to efficiently use washing machines. We use appliances, shower heads and equipment that conserve water. In the future, vacuum toilet systems will be considered when planning to acquire the newbuild vessels. The group has not encountered any issues in sourcing water that is fit for purpose.

Ballast water management

Ballast water is essential for safe and efficient modern shipping operations, but it may pose serious ecological, economic and health problems due to the multitude of marine species carried in ships' ballast water. These include bacteria, microbes, small invertebrates, eggs, cysts and larvae of various species. The transferred species may survive to establish a reproductive population in the host environment, becoming invasive, out-competing native species and multiplying into pest proportions.

Investment project that installing the Ballast Water Treatment System (“BWTS”) in our fleet completed in 2024. We implemented ballast water management with clearly stated instructions for dealing with ballast water in different situations and ensure the ballast water management plans are carried out to the standards set out by IMO. We prohibit unnecessary discharge of ballast water. Vessels need to replace the ballast water at least 50 nautical miles from the nearest shore and at least 200 meters deep when facing abnormal or special situations. Ballast Water Record Book must be kept on each vessel to record the discharge. In 2025, we have met the target of zero failure in the Ballast Water Record Book.

Climate change

The Group understands climate change affects our business and operations; hence it is crucial for the Group to react to prevent the risks associated with the climate change.

To enable a comprehensive review of the climate risks and opportunities, the Group conducted a climate risk assessment and scenario analysis and combine them with our business development. The climate-related risks that are likely to have corresponding business and financial impacts on the Group are discussed as below.

Physical risks
Acute risk – medium to long term The increased frequency and severity of extreme weather such as typhoons, floods, sea level rise and tropical cyclones can disrupt the Group's operations by damaging the fleet, ports and communication infrastructures, causing power failure and injuring employees during their work, leading to reduced capacity and decrease in productivity, or expose the Group to risks associated with non-performance and delayed performance. These risks affect the operational ability of the organization resulting in reputational damage, direct loss of revenue and increase operating cost.

Transition risks
Laws and regulation risk – short to medium term The Group anticipates that there will be more stringent climate legislations and regulations to support the global vision of carbon neutrality. From a listed company's perspective, the Group acknowledges the increasing requirements of climate-related information disclosures.

The Group commits to environmental protection and strives to comply with disclosure requirements, however, this may increase the risk of higher operating costs and maintenance costs.

Market and reputational risk – short to medium term The shipping market is constantly changing, and the increasing attention by the public towards environmental protection led to the change in customer behavior and preference. This change in market pattern led to a change in the demand of the shipping industry – increased demand for green transportation represents an increase in demand for low-sulphur oil with constant performance thus resulting a higher running cost.

In order to attract and retain the best people for the sustainable growth of the Company, we place emphasis on a healthy and safe workplace on board in our vessels and ashore at our office and support all kinds of community activities that contribute to our community.

We put safety as our top priority in business operation. Accident preventions and efforts for improvement in working environment are given high priority in the business management, conventions and all parts of operations. We strive to comply with applicable safety and environmental laws and regulations to which seafarers of all ranks must be trained and certificated in order to be able to carry out their respective duties on board in our vessels. We ensure all seafarers on board are trained and certificated in accordance with STCW Convention.

Health and safety

In order to foster the environmentally friendly practices in our vessels, we follow an internal safety management manual, which defines our objectives and commitments in complying with all applicable national and international rules and regulations, code and guidelines and standards recommended by IMO, flag states and other maritime industry organizations. These codes and guidelines and standards, together with our safety manual have been kept ashore and on our fleet and strictly followed by our team.

For the purpose to attract and retain the best people for the sustainable growth of the Company, we place emphasis on a healthy and safe workplace on board in our vessels and ashore at our office. The Group is committed to preventing any work-related injury to its employees, and has complied with relevant laws and regulations to provide a safe working environment and protecting employees from occupational hazards. During the years 2025 and 2024, there were no work-related fatalities.

During the year, absence due to sickness was 2.2% (2024: 1.4%) of the total hours worked by employees. Work-related injuries or accidents was 1.4% (2024: 0.8%) of employees of the Group. During the year, the Group was not aware of any non-compliance to health and safety related rules and regulations.

Development and training

The Group recognizes the importance of skilled and professionally trained employees to its business growth and future success. Hence, it is firmly believed that it is necessary to improve employees' professional standards continuously through training. We encourage and support all employees taking training courses and workshops that are relevant to job duties to enrich their knowledge and perspective in discharging their duties.

Management and senior staff had access to a variety of training activities, including attending seminars, workshops and conferences and receiving regulatory updates relevant to their business and duties, anti-corruption practices as well as their directors' duties and responsibilities when acting as directors. They received sufficient internal and external training to better equip themselves to fulfil their roles in supporting the Group.

We ensure all seafarers on board are trained and certificated in accordance with STCW Convention. Our owned vessels are also subject to the laws, regulations and rules of each country and port they visit. We have developed policies and procedures intended to ensure our compliance with these laws, regulations and rules. In order to reduce the number of incidents that may happen or minimize the level of accidents on vessels, we arrange emergency drills for seafarers to deal with unexpected situations. We also hold emergency personnel training. Anti-piracy drills are also performed periodically for our seafarers for the proper procedures when there is a pirate attack.