SHENZHEN, December 30 – On the morning of December 30, Mr. Song Rong, Deputy General Manager of China Merchants Group (CMG), conducted a work inspection at China Nanshan (CNDI), where he received operational reports and reviewed safety production management.

| Meeting in Session

Mr. Song first listened to reports on CNDI's business development and safety and environmental protection work. He emphasized that, given the operational reality of CNDI—characterized by numerous business points, extended operational chains, wide geographic coverage, and complex domestic and international business formats—the focus must be on the investigation and rectification of major accident hazards. Key areas requiring strengthened safety control include fire safety, road transportation, on-site operations, construction work, and densely populated venues. Heightened attention must also be paid to non-traditional safety risks arising from new fields, new sectors, and new industries, to build a comprehensive safety prevention and control system covering all domains and the entire chain. Critical control points must be effectively managed: for warehouse leasing, safety responsibility boundaries with tenants must be clearly defined, and landlord oversight responsibilities must be diligently fulfilled; for overseas operations, a safety management coordination mechanism with fellow CMG units abroad must be established; for road transportation, driver management experience exchange and vehicle maintenance must be enhanced, with particular attention to driver mental state management and psychological support; for aging facilities and equipment, a firm commitment must be made to upgrade and renovate, thereby improving intrinsic safety levels.

Mr. Song required that CNDI, in line with the upcoming "15th Five-Year Plan," conduct top-level design, improve its institutional system, and promote the iterative upgrade of its safety management system to proactively adapt to new requirements under the evolving operational landscape. Efforts should focus on enhancing mid-platform supervision capabilities, strengthening refined management of frontline responsibility zones, implementing full-process control of hazardous operations, and intensifying the investigation and remediation of hidden hazards in aging equipment and facilities, thereby solidly shouldering the primary responsibility for supervision and management. The foundation at the grassroots level must be reinforced through meticulous work. The grid-based management model should be effectively utilized to strictly, scientifically, and efficiently implement the safety production responsibility system to every position, process, and time period. The work style of "being strict, practical, fast, and detailed" must permeate the entire safety production process, truly activating the safety nerve endings at the frontline and solidifying the foundation for safe development.

| Site Inspection

During the inspection, Mr. Song and his delegation conducted a field visit to Chiwan Sembawang Engineering(CSE), a CNDI subsidiary. They went deep into frontline areas such as production workshops and construction sites to observe and understand operational processes and the implementation of safety protection measures.

| Site Inspection

Mr. Xu Zitao, CMG Safety Director and Head of the Safety and Environmental Protection Supervision and Management Department; Mr. Shu Qian, General Manager of CNDI; and other relevant responsible persons from CNDI participated in the inspection.