Relying on the policy advantages and location resources of Hainan Free Trade Port, Southern Holdings Group (Hainan) Co., Ltd. (hereinafter referred to as "Southern Holdings") officially announced the comprehensive expansion of the national wholesale business of refined oil products. With efficient supply chain management, high standard quality assurance, and low-carbon service mode, it will help stabilize the supply and green transformation of the domestic energy market, and provide integrated energy solutions for customers in transportation, industry, agriculture and other fields.

1、 Empowering Free Trade Port Policies to Create Efficient Cross border Trade Channels

The "zero tariff, low tax rate, and simplified tax system" policy of Hainan Free Trade Port has injected strong momentum into Southern Holdings' refined oil business.

 The company relies on the "bonded warehousing+international distribution" function of Yangpu Bonded Port Area to achieve efficient operation of the entire chain of finished oil import, storage, packaging, and distribution.

 Through the cross-border trade facilitation policy of Hainan Free Trade Port, the clearance time of refined oil products has been reduced by more than 30%, and the warehousing and logistics costs have been reduced by 15%, providing more competitive prices and services for customers across the country.

 At the same time, the company actively explores the business of "bonded oil refueling for international shipping vessels" and promotes the upgrading of cross-border energy services with the help of the oil trade liberalization policy of Hainan Free Trade Port.

2、 Improve infrastructure and build a national warehousing and logistics network

Southern Holdings has integrated core port resources such as Yangpu in Hainan, Zhoushan in Zhejiang, and Zhanjiang in Guangdong, and built a modern refined oil storage base with a total reserve of over 2 million cubic meters. It is equipped with intelligent storage and transportation systems and quality inspection centers to ensure that the entire process of oil products can be traced and the quality compliance rate is 100%.

 Through the three-dimensional logistics system of "sea land intermodal transportation+pipeline transportation", the company has achieved 48 hour direct delivery to key cities in the Yangtze River Delta, Pearl River Delta, Beijing Tianjin Hebei and central and western regions, with an annual supply capacity exceeding 5 million tons, covering more than 80% of provincial-level markets in China.

3、 Innovate cooperation models and deepen the layout of the entire industry chain

The company collaborates with strategic partners such as PetroChina and Sinopec to connect the entire process of refining production, cross-border procurement, bonded warehousing, and terminal distribution, forming a supply chain loop of "international resources+free trade port hub+national network".

 In response to the needs of industrial customers, Southern Holdings has launched "customized energy services" and signed long-term supply guarantee agreements with logistics groups and manufacturing enterprises;

 Targeting the agricultural market, we have launched a special supply plan for low sulfur diesel to assist in the green upgrading of agricultural machinery.

 By 2025, the company has established partnerships with over 200 regional distributors and extended its service network to county-level markets.

4、 Practicing green and low-carbon practices, leading the industry towards sustainable development

Southern Holdings actively responds to the national "dual carbon" strategy, taking the lead in promoting clean oil products that meet the national VI B standard, reducing sulfur content to below 10ppm and reducing particulate matter emissions by 90%.

 The company is simultaneously laying out new energy businesses such as biodiesel and hydrogen energy, and piloting the construction of an "oil hydrogen electricity" comprehensive energy station in Hainan to promote the coordinated development of traditional oil products and new energy.

 In 2025, the company will achieve full lifecycle emission reduction monitoring of refined oil products through a carbon footprint management system, and is expected to reduce carbon emissions by over 500000 tons throughout the year.

5、 Social responsibility, safeguarding energy supply security

As a key national energy supply guarantee enterprise, Southern Holdings has established an emergency reserve mechanism to prioritize the protection of people's livelihood and public oil demand during special periods such as typhoon season and Spring Festival travel rush.

 In 2025, the company will participate in the construction of the Hainan Free Trade Port Strategic Petroleum Reserve Base, with the first batch of reserves reaching 300000 tons, providing a solid support for regional energy security.

 At the same time, the company has launched the "Sunshine Supply Chain" plan in collaboration with industry associations to promote the transparent and standardized development of the refined oil market.

Future outlook: Building a billion dollar refined oil trading platform

Southern Holdings plans to leverage the pilot policy of "Cross border Data Flow" at Hainan Free Trade Port to build a digital energy trading platform, achieving online order management, logistics tracking, and settlement throughout the entire process.

 In 2026, the company will launch the construction of two regional distribution centers in Dongying, Shandong and Dalian, Liaoning, with the goal of forming a refined oil trade network covering the whole country and radiating Southeast Asia by 2030, with an annual transaction scale exceeding 100 billion yuan, and becoming a leading international energy service provider in China.

About Southern Holdings Group (Hainan) Co., Ltd

Southern Holdings Group (Hainan) Co., Ltd. is a key energy enterprise in Hainan Free Trade Port, with business covering LNG, crude oil import, wholesale of refined oil products, and new energy development. It is committed to building a "green, efficient, and intelligent" energy supply chain system.

 The company relies on the free trade port policy, integrates global resources, serves the national energy strategy, and provides sustainable power for high-quality economic and social development.