Employees Achieving Successand Pursuing Excellence through their growth
Repaying Society in
Nurturing Happiness with Hope
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development ofSmart Urban and Rural Areas throughTechnological Innovation
Green IndustrySustaining Nature through CircularAgriculture
Employees Achieving Success
and Pursuing Excellence through their growth
Repaying Society inNurturing Happiness with Hope
Corporate Governance
Striving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
CONTENTS
Message from the ChairwomanAbout New Hope LiuheResponsibility ManagementResponsibility Focus
Food Saving Special Action:
Comprehensive Protection of FoodSecurityFive-Five Project: Continual Supportfor Rural Revitalization
Exploring theDevelopment ofSmart Urban and Rural Areasthrough Technological InnovationDriving Development through TechnologyUpgrading Smart FarmsCreating A Digital Enterprise
EmployeesAchieving Successand Pursuing Excellence throughtheir growthProtecting Employees' Rightsand InterestsBuilding a Platform for CareerDevelopmentEnhancing Employee CareOccupational Health andSafety
Green IndustrySustaining Nature throughCircular AgricultureImproving Environmental ManagementDeveloping Eco-Friendly Animal HusbandryResponding to Climate ChangeWater Resource ManagementReduction of Waste DisposalEcological Environment Protection
About this reportIndicator Index Table
Repaying Societyin Nurturing Happinesswith HopeStriving to Stabilize Productionand Guarantee the SupplyDevoted to CharityPromoting RegionalDevelopment
Building a Resilient Foundation throughParty LeadershipStrengthening Risk ManagementAdherence to Business EthicsGrowing Together with Partners
CorporateGovernanceStriving to Uphold Long-Termism
Enterprise forPeople's Well-beingSafeguarding Life with LifeStrengthening Food SafetyEnhancing Nutritional ValueImproving Service Quality
01020201
Message from the Chairwoman
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
About New Hope LiuheMessage from the Chairwoman
Chairwoman of New Hope Liuhe Co., Ltd.
Embarking Anew, Journeying on the Ridges of Hope2022 is a year imbued with unique signi?cance - a year both fraughtwith challenges and filled with hope. The successful conveningof the 20
th
CPC National Congress outlined a grand blueprint forthe comprehensive construction of a modern socialist country,sounding the trumpet for our new journey of progress.This year also marks the 40th anniversary of New Hope Liuhe. Lookingback on our 40-year journey, New Hope Liuhe has not only reaped thebenefits of reform and opening up but has also actively participatedin and contributed to its construction. From "if you hope to get richby raising pigs, New Hope will help you" to "profiting the farmers,benefiting the consumers", from launching a "glorious cause" toparticipating in rural revitalization, from implementing combinedfarming and breeding to planning for dual-carbon goals, from flatorganizational structure to digital transformation, we identify andaddress societal needs and challenges. By continuously changing,transforming, and improving ourselves, we better solve problemsand create value for our users, industry, and society. This remainsthe driving force behind New Hope Liuhe's sustained growth.Standing at a new starting point, we have a clearer vision of our pathforward. Today's New Hope Liuhe is a comprehensive agriculturalservice provider. We are committed to resolving issues throughoutthe development of the entire industry and society, extendingfrom feed production to breeding, farming, meat slaughteringand processing, and ?nally connecting to consumers through ourrestaurants and end users. We aim to serve a greater variety ofconsumer needs and create value for our customers by harnessingthe full power of the supply chain. This report represents the shiftfrom traditional CSR reporting to an internationally recognized,nationally encouraged ESG governance system, which signifiesour proactive approach to meet future challenges and drive ourjourney towards high-quality and sustainable growth.Looking back at 2022, as a people-oriented enterprise, we activelyresponded to national policies such as rural revitalization, commonprosperity, agricultural strength, and food security. Guided by thesenational strategies, we integrate them with our following "?ve new"management philosophies, ready for a renewed departure:
Implementing "New Responsibilities": We continue to implementfood conservation measures, focusing on multiple aspects suchas food storage, transportation, livestock and poultry breeding,feed formulation, feed production, and scienti?c feeding. We arededicated to offering consumers healthier, safer, and superior-quality food products, and are striving to enhance a fully traceableand controlled food safety management system from farm totable. We persist in supporting programs aimed at rejuvenatingtalents such as the "Five-Five Project" for rural revitalization andmodern apprenticeship, cumulatively conducting training for atotal of 79,900 people o?ine and 13.61 million online.
As an agricultural and livestock enterprise, the greendevelopment concept has been integrated into our businessoperations. Through implementing a cycle of combined farmingand breeding within the livestock industry, we have accomplishedcomprehensive utilization of 100,000 tons of manure and16 million tons of wastewater. This has contributed to soilenhancement and bio-carbon sequestration. Furthermore, wehave initiated actions like clean energy transformation, potentialenergy-saving exploration, feed formula optimization, and bio-carbon sequestration for low-carbon production.Our public welfare charity activities have become regularized,serialized, and branded. We constantly carry out the "Hope and WishPlan" and "Warm Winter Action", promptly responding to unforeseendisasters such as the Luding earthquake, the typhoon Chaba, andthe Chongqing wild?re, making contributions to disaster relief andpost-disaster reconstruction e?orts.Embracing "New Technologies": We embrace the digital era withopen minds and propose a comprehensive digital transformationstrategy termed as "three fulls and four transformations" under the"integration of industry and digital management". This strategy aimsto establish a close tie between our business and digital technologyacross six major areas, including research and development, farming,production, supply chain, sales, and customer service. We steadfastlyview technology as the principal driving force and have constructed a"4+1" tech innovation system with a concentrated focus on practicaltechnology innovation, thereby empowering the industry.Promoting "New Mechanisms" and Cultivating "New Youth": Ourdiligent employees are our most precious treasure. In 2022, weinitiated the largest scale employee stock incentive plan in theCompany's history, and set up a digital training platform "NewHope Academy" to provide ongoing training and educationopportunities for our sta?. We also created the talent enhancement"3U" model to inspire the hard-working to excel, motivate the high-performers, and facilitate the rise of those taking responsibilities.This is an era ?lled with uncertainties. Yet, the experience andwisdom handed down from our predecessors remind us that it isfrom these uncertainties that we can ?nd opportunities, stayingresolute in our goals and moving forward with determination. Iwill adhere to our original aspirations, consolidate our focus andenergy, work on the front lines, and continue walking alongsideour domestic and foreign business partners on the ridges ofhope, to create an even more beautiful and sustainable "NewHope" for all.
New Hope Liuhe Co., Ltd. (stock code: 000876) was founded in1998 and listed on the Shenzhen Stock Exchange on March 11,1998. Based on the agriculture and animal husbandry industry, thecompany pays attention to the steady development, the businessinvolves the feed, the breeding, the meat product and the ?nancialinvestment, the trade and so on, the company business spreads allover the country and Vietnam, Philippines, Bangladesh, Indonesia,Cambodia, Sri Lanka, Singapore, Egypt and nearly 20 countries.In September 2011, the company's agricultural and animalhusbandry assets reorganization was approved by China SecuritiesRegulatory Commission. In 2018, the company achieved salesrevenue of RMB 69.1 billion, holding more than 500 subsidiariesand 62,000 employees. New Hope Liuhe, ranked 126
thamong theFortune 500 Chinese companies in 2018, is co-vice chairman unitof the China Council of the Global Food Safety Initiative (GFSI). LiuChang, chairman of New Hope Liuhe Co., Ltd., is a member of theboard of directors of the Global Food Safety Initiative.The Company has won the honorary titles of National KeyLeading Enterprise of Agricultural Industrialization, National FoodSafety Enterprise, Ten Times Enterprises of China Animal FeedIndustry, Ten Leading Feed Enterprises of China, Main CreditGrade AAA, Demonstration Project Enterprise of China Meat FoodSafety Credit System Construction, 2017 Forbes Global 2000, etc.,
is the 2018 Shanghai Cooperation Organization Qingdao Summitdesignated supplier of poultry meat.The enterprise technology center has been awarded the title of"National Certification Enterprise Technology Center", and thetwo testing centers have passed CNAS accreditation of nationallaboratories. More than 60 technological achievements have beenawarded at or above the provincial level, of which 6 innovativetechnologies have won the second prize of the State Science andTechnology Progress Award. At present, some of its companieshave won the "ISO 9001 Quality Management System Certi?cation"and "ISO 22000 Food Safety Management System Certi?cation","GAP Good Agricultural Practice Certification", "HACCP FoodSafety Management System Certi?cation" and so on.The company will take "the world agri-food industry leader" asthe vision, "profiting the farmers, benefiting the consumers"as the mission, "customer first, challenge oneself, striver-oriented" as the core values, focus on giving full play to theradiation-driven e?ect of key leading enterprises in agriculturalindustrialization, integrating global resources, building asafe and healthy food industry chain, and making greatercontributions to helping farmers increase their incomes andbecome rich, to meeting the needs of consumers for safe meatproducts, and to promoting social civilization and progress.
Europe - France
Asia - ChinaAfrica - Egypt
Asia - South AsiaAsia - Southeast AsiaAfrica - Nigeria
Africa - South Africa
Pig Farming Industry
Feed Industry
Food IndustryOverseas Market
Meat and PoultryIndustry
03040403
About New Hope Liuhe
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Our 2022
Feed sales (10,000 tons)
202020212022
2,3922,824
2,842
Poultry chicks sales (10,000 chicks)
202020212022
50,765
51,939
54,657
Pork sales (10,000 tons)
202020212022
20.77
29.41
40.11
Pig production volume(10,000 heads)
202020212022
829.25
997.81
1,461.39
Sales Volume of Processed MeatProducts and Precooked Meals(10,000 tons)
202020212022
21.68
25.35
26.87
Poultry meat sales (10,000 tons)
202020212022
185.73
180.14
Number of employees (person)
202020212022
95,993
80,16877,328
Sales revenue (RMB 100 million)
202020212022
1,098.25
1,262.62
1,415.08
Sales Volume of Commercial Chickensand Ducks (10,000 heads)
202020212022
42,364
43,022
38,903
First Prize of Shennong China Agriculture Scienceand Technology AwardFirst Prize of Sichuan Provincial Science andTechnology Progress AwardSecond Prize of Shennong China AgricultureScience and Technology AwardSecond Prize of Shandong Provincial Science andTechnology Progress AwardThird Prize of Shandong Provincial Science andTechnology Progress AwardFirst Prize of China Light Industry FederationScience and Technology Progress Award
Third Prize of China Food Scienceand Technology Society TechnologyInnovation AwardThird Prize of China Medical Science andTechnology AwardNational Seed Industry Key EnterpriseNational Waterfowl Core Breeding CenterNational Waterfowl Fine BreedPropagation Promotion BaseExcellence Award in the First Digital RuralInnovation Design Competition
Honors and Awards
Business Performance
Technology Innovation CategoryForbes Global 2000 (Ranked 1271
st)Fortune China 500 (Ranked 108
th)China's Top 500 Private Enterprises (Ranked 22
nd)No. 1 on the list of Global Top Feed CompaniesGlobal Top 50 Broiler Companies (Ranked 23
rd)No. 6 on the list of 2022 Global Top Pig Enterprises2022 China Meat Industry Advanced Team AwardHurun China Food Industry Top 100 List (Ranked
th
)2022 Top 10 Service Group in China's CateringIndustryAnnual Leading Company in the Precooked FoodIndustry
Industry Leading Category
Best Practice Case of ESG in ListedCompaniesExcellent Practice Case of RuralRevitalization in Listed CompaniesSouthern Weekly China Corporate SocialResponsibility ListMost Socially Responsible ListedCompany on the Listed Companies' PublicReputation List2022 China's Top 500 Companies inCharitable Public Welfare
Social Responsibility Category
05060605
About New Hope Liuhe
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Female directorsrepresent
37.5
% of theboard
The Company attaches importance to board diversity, taking into account various cultural backgrounds,education levels, work experiences, genders, and ages when nominating directors. This approachenhances the scienti?c and e?ective decision-making process of the board. By the end of the reportingperiod, the board consists of 8 directors, including 3 female directors, 3 independent directors, 2with doctoral degrees, 4 with master's degrees, and 2 with bachelor's degrees or below, with diverseprofessional backgrounds such as risk control, financial management, corporate management,agriculture, and animal husbandry.As the Company's primary decision-making body, the board ofdirectors comprises five specialized committees: the audit, remuneration and assessment, strategicdevelopment, nomination, and risk control committees. Independent directors make up more thanhalf of the membership in the audit, remuneration and assessment, nomination, and risk controlcommittees and serve as conveners. The audit committee includes senior financial experts, and allits members are non-executive directors. Before presenting major professional matters to the boardof directors for consideration, they must undergo review and approval by the respective specializedcommittees, thereby actively utilizing the expertise of independent directors. The remunerationcommittee is solely composed of directors and does not include any senior management personnel.When the board reviews draft equity incentive plans and the Company Performance ManagementMeasures proposed by the remuneration committee, related directors abstain from voting to ensure thecommittee's independence. For detailed information on the board's composition and performance,the responsibilities of the board and management team, as well as the structure and operation ofspecialized committees, please refer to the New Hope Liuhe Co., Ltd. 2022 Annual Report.
Investor Rights Protection
Responding to nearly
investorson the Hudongyiplatform, addressing
questions
announcementsdisclosed
1,600investor calls handled
New Hope Liuhe adheres to regulatory requirements, includingthe Rules for Shareholders' GeneralMeetings of Listed Companiesreleased by the China Securities Regulatory Commission,the Company'sArticles of Association, andInvestor Relations Management Regulations, ensuring transparent andorderly shareholders' meetings and guaranteeing investors' rights to be informed and involved in crucialdecisions. The Company is dedicated to fostering strong investor relations and treating each investorwith openness, fairness, and impartiality. By deepening investors' understanding of the Company'soperations, business, growth strategies, and investment value, it e?ectively safeguards the interests of allinvestors, especially the legitimate rights and interests of minority shareholders. The Company treats allshareholders equally, minority shareholders able to attend and vote at shareholders' meetings in personor online. For major matters that may a?ect the interests of minority investors, the Company counts theirvotes separately and discloses the results. Shareholders' meetings also include a Q&A session for minorityinvestors to address their concerns and suggestions, ensuring their rights are protected.The Company continually improves its information disclosure management, with 117 announcementsand 273 documents disclosed throughout the year, including 8 investor communication records and 12live pig sales brie?ngs. We explore multiple channels and approaches to maintain investor engagement,utilizing various platforms like phone calls, emails, and the Hudongyi platform of the ShenzhenStock Exchange to address questions and concerns. We also prioritize communication with overseasinvestors, and in 2022, we released English versions of our annual report, semi-annual report, andsocial responsibility report assist foreign investors in timely understanding the Compangy's strategicdevelopment and business operations.
Corporate GovernanceCorporate Governance Improvement
In 2022,
shareholders' meetings wereheld, passing
resolutions;
board meetings were held, passing,
resolutions;
board of supervisors' meetings were held, passing
resolutions；Additionally,
audit committee meetings,
remuneration and assessment committee meetings,
risk control committee meetings, and
nominationcommittee meetings were held throughout the year.
The Company strictly adheres tothe Company Law of thePeople's Republic of China,the Securities Law of the People'sRepublic of China,the Code of Corporate Governance forListed Companies in China,the Stock Listing Rules of theShenzhen Stock Exchange,the Measures for the Administrationof Information Disclosure by Listed Companies, andtheShenzhen Stock Exchange Guideline No. 1 on Self-regulation ofListed Companies - Standard Operations of Main Board ListedCompanies, along with other relevant laws and regulations.We have established a standardized corporate governanceframework and scienti?cally e?ective rules of procedure, whileconsistently updating and refining our internal control systemat all levels. In 2022, 11 company policies were revised andupdated according to new regulations.We consistently improve our corporate governance structure toenhance its e?ectiveness by re?ning the rights, responsibilities,and operational standards of shareholders' meetings, the boardof directors, the board of supervisors, and the management.Through establishing and standardizing the governancestructure of three meetings goverance, we clarify the roles andauthorities in decision-making, execution, and supervision,thus creating an effective division of responsibilities and
balances mechanism. The Company maintains independencefrom controlling shareholders and actual controllers inaspects such as assets, personnel, finances, institutions, andbusiness operations. Moreover, the Company strictly convenesshareholders' meetings in accordance withthe Rules forShareholders' General Meetings of Listed Companiesreleasedby the China Securities Regulatory Commission andtheCompany's Rules of Procedure for Shareholders' Meetings, andconvenes board meetings and board of supervisors' meetingsadhering tothe Rules of Procedure for the Board of Directorsandthe Rules of Procedure for the Board of Supervisors. TheCompany diligently abides by relevant voting provisions andprocedures to protect the legal rights and interests of theCompany and its shareholders. In order to ensure the board'sindependence and minimize risks associated with relatedparty transactions, the Company has establishedthe InternalControl System for Related Party Transactions, which ensuresthat such transactions comply with the principles of fairness,transparency, and equity. The system also provides detailedguidelines on the identification of related parties, pricing oftransactions, and approval authority, thus contributing to amore re?ned corporate governance structure.Corporate Governance Structure
Independent Directors
Board ofSupervisors
Shareholders'
Meeting
Sta?Meeting
Board ofDirectors
Management Team
Strategy CommitteeAudit CommitteeNomination Committee
Risk Control CommitteeRemuneration andAssessment Committee
07080807
Responsibility Management
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
ESG Issue Management
Stakeholder CommunicationResponsibility Management
In order to gain a deeper and more accurate understanding of the expectations and demands of our stakeholders, and to enhancethe relevance and substance of our reports, we conduct a careful evaluation of environmental, social, and governance (hereafterreferred to as "ESG") issues. This evaluation takes into account aspects such as peer attention, regulatory requirements, and theimportance of these issues to our business operations. We then classify these issues into high, medium, and general categories ofimportance, subsequently forming an ESG Materiality Matrix, which is then reported to our Board of Directors and managementfor further discussion. Through this process, we aim to continually improve our ESG management, ensuring that our developmentstrategy aligns with substantive issues and is balanced with the demands of our stakeholders.
The Company consistently maintains e?ective communication with our stakeholders, adopting an active and open approach, listens
attentively to the expectations and demands of our stakeholders, and proactively responds to them.StakeholdersExpectations and DemandsOur Response
Government & regulatoryauthorities
Stable operationsProtecting shareholders' rightsImproving operational transparency
Sustainable supply chainOpen cooperationCommunication and interaction
Developing ecological farmingAdvancing green operationsCreating a green supply chainCharity donations and volunteer activitiesPromoting the development of operatingareaactivitiesParticipating in rural revitalization
Stable salary incentivesCreating a good work environmentEnsuring health and safetyProviding learning and growthopportunities
Providing high-quality and safe foodEnsuring product supplyDigital intelligence transformationResponding to customer requestsInformation security and privacyprotection
Enhancing corporate governanceAccepting regulatory auditsEconomic stimulus and job growthImplementing policies and payingtaxes in accordance with the lawOperating in compliance with laws andregulationsPaying taxes in accordance with the lawSupporting local development
Consistent and stable returnsTransparent and open information
Product quality and safetyOptimized customer serviceReliable privacy protection
Promoting regional developmentPublic welfare and charityCommunity co-building
Scienti?c and e?cient use of resourcesReducing impact on the environmentDriving the industry to improve greendevelopment capabilities
Protection of basic rightsTraining and developmentHealth and safetyEmployee care
Adherence to business ethicsHonest cooperationWin-win development
Shareholders & investors
Consumers & customers
Partners
Employees
Environment
Communities
Ensuring Food Safety
Digital TransformationParticipating in Rural RevitalizationEmployee Training and Development
Sustainable Supply ChainReducing Waste EmissionsAddressing Climate Change
Public Welfare and CharityResponsible MarketingInformation Security and PrivacyProtectionEnsuring Operational SafetyIntellectual Property ProtectionOpen Cooperation
Protection of Basic Employee Rights
Water Resource ManagementBiodiversity ConservationBusiness Ethics and Anti-corruption
Ensuring Animal WelfareOccupational Health and Safety
Quality Customer ServiceCommunity Co-buildingStrengthening Party-building Work
1819
Importance to stakeholders
Importance to development of the company High
High
Low
101109
Responsibility Focus
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Food Saving Special Action: ComprehensiveProtection of Food Security
Establishing the "Innovation Consortium"Participating in StandardSettingObjectives of New Hope Liuhe's Food Special Action
Responsibility Focus
In the report from the 20
thCPC National Congress, thenational strategic requirement of "solidifying the foundationof food security in all aspects, and firmly safeguarding thered line of 1.8 billion mu of cultivated land" was proposed.New Hope Liuhe, as one of the largest grain consumersin China, is actively participating in efforts to secure foodsafety. We are advancing and implementing strategies forreducing food waste and loss, and have launched the 'NewHope Food Saving Special Action'. By employing measuressuch as reducing grain consumption, improving breedingtechniques, optimizing feed formulas, and employing digitalfarming practices, we encourage and call on domesticlivestock businesses and feed companies to join us in thisspecial food saving initiative.
Food Saving inTransportation
Food Saving in FeedFormulation
Food Saving in FeedProduction
Food Saving in Farming
Food Saving in Grain Storage
Replacing original grains withvaluable ingredients and by-productsPromoting the applicationof multiple fermentation rawmaterial technologies
Implementing precisenutrition and accuratefeeding measuresTimely identi?cation andremoval of worthless pigsImproving productionmanagement techniques,increasing survival ratesInstalling powder screens,reducing powder waste
Renovating self-feedingfertilizer troughs, reducingfeed waste, and decreasingfeed consumption per pigby 5%
Technical modi?cationof the grinder to adapt tolocal grain characteristics,reducing lossesControlling moisture loss
Food Saving in BreedingDevelopment andapplication of new food-saving breedsDeveloping digital breedingsoftware for e?cientidenti?cation of pigs withoptimal feed conversionratesImproving the PSY ofsows by employingcritical techniques suchas increasing the ratios ofsuperior boar usageEnhancing the feedconversion e?ciency ofmeat ducks through newduck breeding selectionThrough the MinnongCloud Warehouse, we applyintelligent supervision tograin storage, collectingdata on parameters such asgrain temperature, humidity,gas concentration, pests,and moisture content.This approach allows us toprevent grain damage andloss due to pest infestation,heat generation, and mold.
Transitioning from bulkdispatch to containerizeddispatch, shifting frompredominantly highwaytransportation to acombination of land,railway, and maritimecontainer transport, therebyreducing losses during thelogistics process
Implementing ComprehensiveFood Saving Across the SupplyChain and StrengtheningClosed-loop Management
The Company extends its special food-saving speci?c actionsto all aspects of the supply chain, enhancing closed-loopmanagement across the entire chain. We focus on details atkey points, coordinating e?orts to achieve high-quality food-saving objectives.
Food Saving at the Source, Optimizing Feed FormulasThe Company adopts measures for formula food saving which are based on "e?ciency enhancement, resource diversi?cation, and structuraladjustment". These measures enhance the usage e?ciency of existing feed, increase the variety of usable raw materials, and optimize andadjust feed structure, achieving a comprehensive way to food saving in our feed formulation process.
Intelligent Food Saving: Advancing Digital Agriculture
Rallying Industrial Strength for Collaborative Food Saving
In the livestock production process, we utilize scienti?cally e?ective management methods, giving importance to the digital andintelligent upgrading of livestock breeding, pig breeding, and farm management. By fostering and leveraging digital technologies,we promote feed and grain conservation.
When everybody adds fuel the ?ames rise high, New Hope Liuhe strengthens industrial interconnections, encouraging and callingupon upstream and downstream enterprises, research institutions, and social groups to participate in the special food saving action.This collaborative e?ort harnesses the wisdom and power of all stakeholders, collectively contributing to food security.
We convened the "New Hope Feed Saving Technology Innovation Joint Actionand the 6
thHOPE Science and Technology Consortium", and took the lead inestablishing the "Feed Saving Technological Innovation Consortium" (simply"Innovation Coalition"), uniting multiple research institutions, 8-10 academiciansand renowned experts, 11 upstream and downstream enterprises throughoutthe industrial chain, a seasoned technological investment fund, an internationalthink tank, and three national-level associations, among other stakeholders. TheInnovation Consortium, with feed saving as its focal point, hones in on three criticalsegments: breeding, feed, and farming. It strives for technological and managerialinnovation, embarking on 30 key technological development and upgradeinitiatives, and setting up 10 key technological challenges to collectively promotegrain conservation.
The Company actively participates inthe key national project "AdvancedTechnologies and New Products Creationin Protein Feed Bioengineering" underthe "14thFive-Year Plan". We also assistin crafting national and industry-widestandards, promoting standardized andregulated breeding management.
Pig Breeding Project
Through our self-developed "Xiu Jie system," we have established genome breeding value algorithms, relationshipalgorithms, and breed purity algorithms. This enhances pig breed optimization, raises breeding e?ciency, diminishes pigintra-group variances, enables precise feeding of pig herds, re?nes feed-meat ratios, and decreases feed consumption.
Strengthening Intelligent FarmingWe are constantly committed to achievingunmanned or minimally manned pig farmmanagement, leveraging intelligent anddigital technologies to facilitate modernfarming practices.
Building a Digital Feed Factory
We have completed a pilot project fora digital feed factory, creating a digitallogistics coordination platform withinthe factory. This enables automation andunmanned processes like vehicle entryand weighing, avoiding waste and lossof raw materials and feed due to humanoperations.
Improve the overall e?ciency of feed usage by
% every year, which equates to saving
%
ofgrain every year or around
700,000
mu of cultivated land.Persist for ?ve consecutive years, resulting in a totalsavings of about
1.5
million tons of grain, corresponding to asaving of over
million mu of farmland.
Resource Diversi?cation to Increase Raw Material VarietyWe focus on research into raw material pretreatment techniquesto increase the choice of raw materials in our feed formulas.We have built our own raw material database and developed the"Hongtong System", amassing a nutritional value database ofover 200 non-grain raw materials. This promotes diversi?cationof raw materials and enables precision feeding.Moreover, we have enhanced the recycling and utilization of localoil cakes, which has increased the e?ciency of utilizing variousprotein resources and reduced dependence on soybean meal.In 2022, we optimized feed formulas and reduced soybeanmeal usage by300,000
tons.
E?ciency Enhancement to Reduce Raw
Material LossWe implement precision feeding, strictly feedingpigs according to the precise nutritional needsof their various growth stages. We also managefeed ordering, mixing, usage, and data entry withprecision, reducing feed waste.
Structural Adjustment for Feed Formulation
Optimization
We advocate for low-protein diets to reduce theusage of high-priced, imported protein raw materialslike soybean meal. By improving formulas, we ensurea balanced ratio of amino acids.
121314
Responsibility Focus
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility ReportResponsibility Focus
Five-Five Project: Continual Support for Rural RevitalizationIn active response to the significant rural revitalizationstrategy, New Hope Liuhe has proposed the "Five-FiveInitiative"—undertaking five critical tasks in five years tofacilitate rural revitalization. These include the Rural GreenCollar Training Program, the Rural Model DemonstrationProject, the Small and Micro Support Project in rural areas,the Rural Employment Resolution Program, and the RuralIndustrial Revitalization Project.
Modern Agriculture forIndustrial RevitalizationProsperous industry is crucial to attract resources and retaintalent, and only economic prosperity can enrich farmersand spur rural development. New Hope Liuhe prioritizesindustrial development as a catalyst for agriculture, sharinginsights for pig industry progression, and thereby facilitatingindustrial upgrade.Advocating for Industrialized Pig Farming
With a philosophy of high investment, high efficiency,high returns, and low costs, the Company introduce all-in-all-out, standardized production, and balanced nutritionthroughout the year in the design of industrial pig farmingprocesses. This guides regional progression in pig farmingindustry upgrades.Upgrading Digital TechnologyWe actively promote the integration of digital technologiessuch as cloud computing, IoT, big data, and artificialintelligence with industries. By fully implementing airfiltration systems, smart environmental control systems,automatic feeding systems, automatic drinking systems,and automatic manure removal systems, we boost industryquality improvement and e?ciency enhancement.
Cultivating in Depth: Revitalizing Talents
New Hope Liuhe has launched the "100,000 Green Collar New Farmer Training Plan"as part of its rural revitalization initiative. This plan aims to train 100,000 new-typeprofessional farmers within five years. By leveraging its core competencies in areassuch as technological innovation, financial assistance, technical training, and marketconnection, the Company strives to foster a new generation of professionals who"love agriculture, understand technology, and excel at management", contributing tothe revitalization of rural talent. The project has established a "5+N" Special TrainingSystem, encompassing one standard process, two sets of professional textbooks, threetypes of quality courses, four supporting institutions, ?ve sources of teaching sta?, anda multitude of distinctive demonstration training bases. By the end of 2022, the o?inetraining sessions of this project had reached 23 provinces, 128 cities, and 332 counties/districts, hosting a total of 2,032 sessions and training 79,900 individuals. Online traininghas reached 13.61 million participants.Furthermore, catering to the needs of farmers and different stages of agriculturaldevelopment, we have created specialized courses through various online and o?ineteaching settings. With farmers' demands at the core, we aim to build high-qualitytraining programs.
Supporting and Financing Small and Micro Enterprises for Agricultural DevelopmentNew Hope Liuhe capitalizes on its strengths in agricultural immersion, ruralservicing, and farmer proximity, deploying entities such as companies of itsagri-food industry chain and industry research institute to o?er supply chainfinancial services and agriculture-related technical services. This aids in thegrowth of smallholder farmers and micro, small, and medium enterprises, andsupports farmers in developing modern agriculture and increasing income.The company has innovatively established a multifaceted ?nancial guaranteeoperation model, incorporating "government + enterprise + banks + guaranteecompanies + insurance companies + farmers". With this model, the funds canbe allocated to the respective poultry and feed factories, and banks formulateproducts aligning with the farming cycle, ensuring rapid capital turnover andstrong liquidity.
New Hope Liuhe's industrial ?nancing platform, powered by its own capabilities in riskmanagement, data accumulation, and platform construction, o?ers digital services forupstream and downstream enterprises and customers in the supply chain to obtainbank ?nancing, employing direct bank-enterprise ?nancing service models.Currently, the platform has introduced a variety of supply chain financingproducts, such as Haoyangdai, Haoqinbao, and Yongjindai. These o?erings caterto five key financing scenarios—upstream feed financing, downstream feed?nancing, pig breeding ?nancing, poultry breeding ?nancing, and food terminalfinancing—providing solutions for a range of clients, including raw materialsuppliers, feed customers, breeders, food terminal distributors, and storefronts.By utilizing client transaction records and performance data within New HopeLiuhe, the industrial ?nancing platform forges a connection between banks andthe Company's industry chain clients, facilitating banks in client credit granting.It o?ers digital, customized, one-stop services for client ?nancing, empoweringbanks to select high-quality clients and promoting e?cient ?nancing channelsfor outstanding partners within New Hope Liuhe's industrial ecosystem. Thisfacilitates a triple-win for New Hope Liuhe, capital providers, and industry clients,further strengthening the long-term strategic collaboration between New HopeLiuhe and its supply chain partners, and enhancing the overall competitivenessof the industry ecosystem. In 2022, the industrial ?nancing platform served over7,400 clients, helping them secure ?nancing of RMB 5.3 billion.
Financial Guarantee
Building a Service PlatformTo solve the ?nancing di?culties of agricultural industry chain clients, NewHope Liuhe's subsidiary, Puhui Agriculture and Animal Husbandry FinancingGuarantee Co., Ltd., has set up a 2.0 agricultural industry chain financialservice platform. It has developed an inclusive "agri-industry chain ?nance"model that consists of "data tier + risk control tier + product tier + scenariotier". By the end of 2022, Puhui Agriculture and Animal Husbandry FinancingGuarantee has carried out business in 31 subsidiary regional companiesacross the country, launching nearly thirty characteristic industry guaranteeloan ?nancial service solutions, such as "Aquatic Feed Loan", "Contract PigDeposit Loan", and "Beef Cattle Breeding Loan". It has cumulatively served176,100 agricultural operators, with RMB 58.5 billion in ?nancing successfullyimplemented, e?ectively bene?ting and assisting farmers.Strengthening Cooperation between Upstreamand Downstream ClientsThe Company actively expands cooperation externally to extend its reach toupstream and downstream industrial clients. We achieve scenario-based masscustomer acquisition by leveraging data from "within the industrial chain +partners". In collaboration with leading businesses across key agriculturalsectors including agriculture, forestry, animal husbandry, ?sheries, agriculture-related wholesale, and food processing, the Company unifies its internalresources to serve agricultural supply chain clients, delivering tailored ?nancialsolutions based on speci?c agricultural supply chain scenarios.
While establishing our own pig farms, New Hope Liuhe collaborated with localfarmers to promote the Hope Farm model based on the principle of "Six Uni?cationsby the Company, Three Non-Concerns for the Farmer". This model fosters a smartdevelopment approach linking enterprises and family farms, allowing modernbreeding technology to benefit more farmers. The Company ensures a unifiedsupply chain for farmers engaged in livestock production, encompassing theprovision of standardized weaned piglets, consistent feed throughout the entireprocess, standardized medication and vaccines, uniform management andtechnical support, adherence to standardized farm construction standards, and theestablishment of a uni?ed recovery system. Farmers only provide standard fatteningpig houses and pig farming labor, not bearing the risk of market volatility and capitalissues. As of the end of 2022, the Company engages in a cooperative arrangementwith 2,211 households of free-range farmers for the feeding and retention offattening pigs, a year-on-year increase of 19%. Among these, 90% of farmers had ascale of over 1,000 pigs, with an average farm size increased by 40% compared tothe previous year.
Launch the Hope Farm Model
Case Study
In partnership with institutions such as the Chinese Academy of Agricultural Sciences, Sichuan Provincial Tourism Development Committee, Jiangsu VocationalCollege of Agriculture and Forestry, and Shandong Vocational Animal Science and Veterinary College, we have successfully established nine specializedtraining bases. These bases concentrate on areas of training including young farmer development, rural e-commerce, rural tourism, agricultural innovation,livestock farming, and crop cultivation. By collaborating with local governments, higher education institutions, research entities, and other societal forces, we'veaccomplished synergy and resource-sharing across these bases.
"5+N" Special Training System
N
One Standard ProcessWe've distilled our training practices into a standardized operationmanuals appropriate for the organization, execution, project acceptance,and procedural management of the new farmer training projects.Two Sets of Professional Textbooks
O?ine, we o?er illustratively rich and easily comprehensible textbooks,including already printed editions on pig and poultry rearing.
Online, we have developed over 140 video courses that allow for bite-
sized learning through short, easy-to-understand, and highly practicalvideos. Additionally, we have provided 92 public-benefit live-streamed courses that cover a wide range of agricultural topics.
Three Types of Quality Courses
Technical Skill Courses, designed according to different industrial
farming techniques.
Technical Management Courses, targeted at key farm managers'
technical and management courses.
Industrial Business Courses, necessary for young farm owners and
leaders, covering business management and industry knowledge.
Four Supporting Institutions
The "Green Collar New Farmer Training" project teamNew Hope Green Collar AcademySichuan Yonghao Public Welfare Charity FoundationRural Revitalization Industry Integrated Development AllianceFive Sources of Teaching Sta?
Full-time coaches from New Hope Liuhe Industry AcademyResearch experts from New Hope Liuhe's five industry researchinstitutesNew Hope Liuhe's senior management team and agriculturalprofessional managersExperts and scholars from Chinese Academy of Agricultural Sciences,China Central Agricultural Broadcasting and Television School, andother collaborating academic institutionsQuality instructors from superior domestic and internationalcorporationsA Multitude of Distinctive Demonstration Training Bases
Established for village party secretaries and village heads, this program encompassesinterpretation of "rural revitalization" policies and regulations, sharing of industryrevitalization practices, and on-site research and analysis of suburban village cases inBeijing. Under the guidance of professional mentors, "village lead students" analyzeand study the governance issues of their respective villages and explore new pathsfor rural development.
In collaboration with the China Charity Federation,we have launched rural public welfare classes. Theseclasses provide lectures and specialized tutoring forgrassroots o?cials, farmers, herdsmen, and scenic spotand homestay operators in four provinces, including theXinjiang Uyghur Autonomous Region and Henan. In 2022,we developed 16 courses, including "Prevention andControl Measures for Common Infectious Diseases in BeefCattle" along with other courses on breeding technology,disease prevention and control, and pen construction.
The Farmer Mobile Application Skills Training Project isorganized by the Department of Market and Informatizationof the Ministry of Agricultural and Rural A?airs. The projectaims to enhance agricultural production efficiency bytraining farmers to utilize mobile tools. New Hope Liuhe,being the sole listed agro-pastoral enterprise appointed bythe Ministry of Agriculture and Rural A?airs, has been invitedfor the past six consecutive years since 2016 to organizededicated corporate events, reaching a total of 12,000participants in-person and over 300,000 participants online.As of 2022, a total of
people have been trained in this program.
Since 2018, we've partnered with Shandong VocationalAnimal Science and Veterinary College to establish theNew Hope Liuhe Agricultural and Pastoral College. We'veembarked on joint enrollment and talent cultivationendeavors with the institution, following the model of themodern apprenticeship system. By integrating theory withpractice, we train talents, guiding apprentices to learntheoretical knowledge at school and practical skills at NewHope Liuhe's large-scale pig farms.As of the end of 2022, atotal of 430 people have been trained in this program.The Company has successively partnered with four universities to conduct school-enterprisecollaborations through the modern apprenticeship system and targeted training, delivering orreserving 886 "green collar" talents for the agricultural and pastoral industries. The New Hope Liuhe"green collar" talent training project has been selected for the first batch of vocational educationschool-enterprise in-depth cooperation projects.
"Village Head Course" for Rural Revitalization
Focusing on both technological andmanagerial aspects, we have designeda systematic training curriculum. Weorganize industry specialists to offeron-site guidance at farmers' livestockfarms, utilizing our industrial edgeto provide farmers with systematicbreeding technology training and on-site advisory services.
Industrial Training
Data Tier: The agricultural industry chain financial services platform servesas the foundation for the data layer, tackling the challenge of informationcollection from farmers and other industry chain clients.Risk Control Tier: Digitally-driven precise agricultural risk management formsthe backbone of our risk control layer, reinforcing the overall risk managementprocess.
Product Tier: The product layer consists of a range of business loan products
for agricultural supply chain clients, ensuring precise and efficient personalsupply chain ?nancial services for key rural revitalization scenarios.Product Tier: The product layer consists of a range of business loan productsfor agricultural supply chain clients, ensuring precise and efficient personalsupply chain ?nancial services for key rural revitalization scenarios.
Scenario Tier: The scenario layer is underpinned by both online and o?inetransactional scenarios provided by industry partners and collaborators,allowing for scalable customer acquisition and targeted services.
Farmer Mobile Application Skills TrainingassesDelivering Education to the Countryside -
Rural Public Welfare Classes
Modern Apprenticeship System
Supply Chain Financing
Bank-Enterprise Direct Linkage ModelCooperation Mode: The Bank-Enterprise Direct Linkage Model operates as a pure creditbusiness, in which our industrial financing platform does not assume any guaranteedrepayment responsibilities. Service scenarios include upstream and downstream feed?nancing, pig breeding deposit loans, and others.Service scenario:feed upstream, feed downstream, Pig industry deposit loan, etc.Collaborative Banks: China Construction Bank, Bank of Communications, Postal Savings Bank ofChina, Agricultural Bank of China, China Resource Bank, and MyBank, among others.In 2022, the Bank-Enterprise Direct Linkage Model served more than
1,400
clients,with loan disbursements reaching RMB 3
billion.
Our "Digital Smart Breeding Solution" case
participated in the"First Digital Rural InnovationDesign Competition"and won anExcellence Award.
Exploring the Development ofSmart Urban and Rural Areas throughTechnological Innovation
Green IndustrySustaining Nature through CircularAgriculture
Employees Achieving Success
and Pursuing Excellence through their growth
Repaying Society inNurturing Happiness with Hope
Corporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
CorporateGovernance
Striving to UpholdLong-TermismNew Hope Liuhe consistently adheres to the guiding principles of partyconstruction, continuously fortifying the groundwork for our corporatedevelopment. We strengthen stringent risk management, maintain adherenceto regulatory compliance, and uphold integrity in our operations, firmlyestablishing a boundary against corruption. By advancing clean governanceand collaborating with business partners for mutual growth, we continuallyenhance our ability to manage our operations prudently, contributing to thevibrant and enduring prosperity of the Company.
Contributing to the United NationsSustainable Development Goals
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Enterprise for People's Well-being
Safeguarding Life with Life
Exploring the Development ofSmart Urban and Rural Areas throughTechnological Innovation
Green IndustrySustaining Nature through CircularAgriculture
Employees Achieving Success
and Pursuing Excellence through their growth
Repaying Society inNurturing Happiness with HopeCorporate Governance
Striving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
新希望六和股份有限公司 2022 年度企业社会责任报告
Building a Resilient Foundationthrough Party Leadership
The year 2022 not only marked the successful convening of the 20
thCPC National Congress, but also celebrated the 40th foundinganniversary of New Hope Liuhe, marking a period of significant intensification in our party construction efforts. The Companythoroughly embraced the spirit of the 20
thCPC National Congress and innovated our party construction strategies. We enhanced the"Hope Red" party construction brand building, and proposed the party construction ideology of "party construction shapes culture,culture fuels unity." This dedication to high-quality party construction became the driving force behind our pursuit of high-qualitycorporate development.
The Company has focused intensively on partyorganization development, diligently implementingthe party's directives, policies, and various worktasks. We promoted the "dual-entry, cross-positioning" model for party cadres within New HopeLiuhe, solidifying their roles. We have re-electedmembers of the New Hope Liuhe Party Committee,as well as the Executive Deputy Secretary of the PartyCommittee, and have concluded organizationaladjustments and leadership elections for ?ve directlya?liated party branches, including the Beijing PartyBranch, Chengdu First Party Branch, Chengdu SecondParty Branch, Chengdu Third Party Branch, and theFeed Party Branch. These initiatives have enhancedour organizational coherence and optimized ourstructural arrangements.
Strengthening PartyOrganization Construction
New Hope Liuhe's Chengdu Third PartyBranch held its election congress
In 2022, the Company put forward the concept of"party construction shapes culture, culture fuelsunity," institutionally ensuring the integration ofparty construction and cultural development, whichprovided a continuous ?ow of spiritual energy for theCompany's growth and development. We establisheda system of rewards and penalties, issuedthe BasicPrinciples of Rewards and Penalties of New HopeLiuhe, and held the "Strive with Dedication, Shinewith Hope" culture-driven special event. During thisevent, we honored 108 outstanding teams and 81exceptional individuals, fostering a culture of resolutedetermination and relentless perseverance.
Party Construction Leading
Corporate Culture
"Strive with Dedication, Shine with Hope"culture-driven special event
The Company has actively initiated a series of partyactivities themed "Promoting Efficiency and CostReduction for Business Growth, with Party Membersas Pioneering Role Models", in celebration of the 101stanniversary of the founding of the Communist Partyof China. An initiative titled "Unify Minds, Win throughActions" was launched to encourage party members totake the lead and contribute their ideas for enhancinge?ciency and reducing costs. Additionally, we hosted ajoint party-building event themed "Party ConstructionFacilitating Development, Bank-Business CollaborationUpholding Original Intentions." This event includedexchanges with Xinjin Intelligent Pig Farm and acollaborative party-building effort with the Bank ofChina Sichuan Branch, together seeking out bestgovernance practices for high-quality development.
Featured Party Construction
Activities
New Hope Liuhe and the Bank of ChinaSichuan Branch are collaboratively engagingin party-building activities
New Hope Liuhe issued a Notice onDiligentlyStudying and Understanding the Spirit of the 20
thCPC National Congress, organizing 86 grassrootsparty units and more than 5,000 party membersto participate in over 100 specialized theoreticalstudy sessions. This endeavor has showcased theleadership role of party members and activelydisseminated the spirit of the 20
thCPC NationalCongress.
Disseminating the Spirit of the
thCPC National Congress
A professor from the Sichuan ProvincialParty School is expounding on the spirit ofthe 20th
CPC National Congress
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Green Industry
Sustaining Nature through CircularAgriculture
Employees Achieving Success
and Pursuing Excellence through their growth
Repaying Society inNurturing Happiness with HopeCorporate Governance
Striving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
New Hope Liuhe has formulated a set of governing guidelines strictlyfollowingthe Company Law of the People's Republic of China,Securities Law of the People's Republic of China, Basic Norms for theInternal Control of Enterprises, andApplication Guidelines for theInternal Control of Enterprises, along with other laws and regulations.These guidelines includethe New Hope Liuhe Co., Ltd. Internal ControlManagement System,New Hope Liuhe Co., Ltd. Six Red Lines, NewHope Liuhe Co., Ltd. Application Guidelines for Internal Control,andNew Hope Liuhe Co., Ltd. Guiding Opinions on Legal DisputeManagement. These guidelines, tailored to the unique characteristics ofthe industry, establish robust, targeted risk management protocols forareas such as environmental protection, safety in production, productquality, and digital technology. The Company actively pursues a workmodel that prioritizes risk management and emphasizes compliancemanagement supervision, striving to create a cohesive, efficientsystem of internal control, risk control, and compliance management.
Third defense line: The Audit Center and the Supervision Centerwithin the Audit and Supervision Department are the third lineof defense, responsible for auditing, internal accountability,and, in cases of criminal o?enses, referring the matter to judicialauthorities.The Board of directors assumes the ultimate responsibility forrisk management, and is responsible for decision-making andsupervision of significant matters related to the Company'scomprehensive risk management.
Strengthening Risk Management
The Company is committed to enhancing its overall risk controlframework in alignment with regulatory requirements and internalimperatives, with a focus on bottom-line thinking and a heightenedawareness of risk thresholds. To ensure the effectiveness of itsrisk management efforts, it seeks to improve the standardization,systematization, precision, and digitalization of its risk managementprocesses, and expand the depth of its risk management measures.
Risk Management Objectives
New Hope Liuhe has established a comprehensive risk managementsystem, accurately identifying, prudently assessing, and dynamicallysupervising various sources of risk, including financial, market,operational, and legal risks. We have improved our risk managementorganizational structure, clarified responsibilities, and developed atop-down risk management framework with a four-tier organizationalstructure, establishing a triple-barrier risk defense system forproactive, reactive, and retroactive management.
Risk Management System
The Company has strengthened its risk identification, prevention, andmanagement capabilities. We continue to enhance our capacity torespond to risks such as environmental protection, safety production,and human resource risks, developing scienti?cally sound risk responsestrategies, and e?ectively managing and mitigating potential risks.The Company has launched specialized training programs for employeesacross di?erent departments to strengthen their expertise and awarenessin risk management. In 2022, we organized risk management trainingspeci?cally targeting key risk sources, such as food safety, safe production,and environmental protection, aiming to constantly enhance employees'risk management awareness and capabilities.
First defense line: Operating units including business units/
vertical teams, strategic regions/integrated units/settlements,and subsidiaries, form the first risk management defenseline as operational management entities, charged with theestablishment and execution of internal control measures.
Second defense line: business units/vertical teams/internalcontrol and risk control lines, all functional departments at thecompany headquarters, the middle offices of the Pig RaisingStrategic Command, and the Internal Control Center of the Auditand Supervision Department form the second defense line inthe Company's risk management, responsible for the design andsupervision of internal control implementation.
Identifying Signi?cant Risks
Specialized Training Programs
3,411
risk managementtraining programs have beenheld
with a total of1,002,000
participants
Tailored to the specific characteristics of the business, we have establishedan intelligent backend system that provides consultation and advice onvalue chain design, business capabilities, and strategic operations. Wehave also set up capability and business platforms to promote therecti?cation of audit issues and facilitate anti-fraud investigations.We have created risk maps for each industry by identifying potential riskfactors, enabling a systematic approach to risk management. Sensitivepositions are evaluated based on job functions, role design, and personnelprofiles. To tackle significant risk factors, the Company enhances internalcontrol systems and implements training and awareness initiatives forproactive prevention, establishing an early warning mechanism thatseamlessly merges risk management with integrity and compliance.
Establishing a full-chain collaborative riskmanagement framework for the pig industry
Creating industry risk maps
Intelligent Risk Management Measures
Follow SunshineNew Hope LiuhePeople, watch theComic of Sunshine
The Company has established a robust compliance and business ethics management system in accordance withlaws and regulations such asthe Company Law of the People's Republic of China, Anti-Unfair Competition Law of thePeople's Republic of China, Anti-Monopoly Law of the People's Republic of China, and industry norms. This systemincorporates anti-fraud, anti-money laundering, and anti-bribery measures, ensuring these principles are understoodand followed by all employees and partners. Through a variety of measures, we strive to elevate the standard of ourcorporate compliance operations. We steadfastly adhere to the principles of "Dare not to corrupt, can't corrupt, don'twant to corrupt", and have put in place several regulatory documents such asthe Employee Sunshine Commitment,Management Behavior Guidelines,New Hope Liuhe Employee Conflict of Interest Declaration ManagementMeasures, andthe New Hope Liuhe Six Red Lines of Non-Permissible Actions. We continually re?ne our integrityand compliance system, upholding stringent integrity standards in our hiring practices. We also improve oursupervisory systems, and promote the continuous implementation of an ever-evolving integrity and compliancesystem. With such an approach, a culture of integrity is fostered, an orderly management environment ismaintained, and solid assurances of high-quality development are provided for the Company. In 2022, theCompany successfully investigated and resolved 36 corruption cases, with an e?ective reporting processingrate of 100%.
One of New Hope Liuhe's main concerns is mitigating business ethics risks in the procurement process. The Companyadheres to transparent procurement, upholding the principles of openness, fairness, impartiality, and honest credit.We identify key risk issues in our interactions with suppliers and sign a "Sunshine Cooperation Agreement" with eachsupplier, ensuring business relationships are founded on honesty and trust. During the negotiations with suppliers, weconsistently highlight our business ethics policy, identify potential integrity risks, and work together to establish ane?cient and clean supply chain. In 2022, 100% of our suppliers signed the Sunshine Cooperation Agreement.
New Hope Liuhe has established a robust anti-corruption organizational system, consisting of internal control,audit, and supervision units. These teams conduct audits on the integrity compliance systems of suppliers andemployees, and other routine production and operation matters, with a full audit of all businesses every threeyears. In 2022, the Company conducted 36 audits related to business ethics and anti-corruption, achieving a 100%recti?cation completion rate and holding 512 individuals accountable*.
Strengthening Audit Supervision
The Company has established comprehensive management measures such asthe Accountability ManagementSystem of New Hope Liuhe Co., Ltd. andthe Reporting Investigation Management Method of New Hope LiuheCo., Ltd. We have set up channels for letters, visits, phone calls, online submissions, and o?ine submissions toaccept supervision and reports from internal and external stakeholders about the Company and its employees.Upon receiving a report, we promptly follow up and complete the investigation within 5-10 business days. Forcases where preliminary conclusions cannot be drawn, the investigation is suspended or terminated. If disciplinaryviolations are found, accountability measures are taken according to internal management procedures. If criminalo?enses are suspected, the case is handed over to the judicial authorities for processing. Meanwhile, the Companyplaces high importance on the protection of the rights and interests of whistleblowers. Con?dentiality is requiredthroughout all stages of the complaint handling process, and strict protection is provided for the personalinformation of whistleblowers, maintaining their rights.
Providing Clear Channels for Reportin
The Company has initiated the "Sunshine Action", which involves a wide range of integrity promotionalactivities. These include requiring new employees to sign a Sunshine Commitment, posting anti-fraudposters in both domestic and overseas subsidiaries, and issuing reminders about maintaining integrityduring holidays. We have held integrity-speci?c training sessions, inviting external experts for lectures andconducting several anti-corruption training sessions within the Company, to enhance employees' awarenessof integrity and guide them to follow the codes of professional ethics and employee behavior. We are fullycommitted to the implementation of our integrity and compliance system.
Enhancing Training and Dissemination
Developing a Transparent Supply Chain
Adherence to Business Ethics
Note: * The data does notinclude frontline operatorsand overseas foreign sta?.
Employee Anti-CorruptionTraining Coverage
%Number of EmployeeAttendances in Anti-Corruption Training
68,000
attendancesTotal Duration ofAnti-Corruption Training
34,000
hours
Enterprise for People's Well-being
Safeguarding Life with Life
Exploring the Development ofSmart Urban and Rural Areas throughTechnological Innovation
Green IndustrySustaining Nature through CircularAgriculture
Employees Achieving Success
and Pursuing Excellence through their growth
Repaying Society in
Nurturing Happiness with Hope
Corporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Supporting Supplier Growth
Enhancing supplier capabilities is an e?ective way to promotethe progress and development of the industry chain. New HopeLiuhe, together with its suppliers, strives for mutual growthand jointly elevates industry safety and quality standards. TheCompany actively engages in collaboration and communicationwith suppliers by organizing forums and meetings to gaininsights into their needs, offer assistance and support, andencourage quality management exchanges. This creates acommunication platform for suppliers to better understand theCompany's quality management requirements. The Company'ssubsidiaries have established strong partnerships with varioussuppliers, conducting regular research and learning activitiesto enhance mutual understanding and trust. In 2022, theCompany initiated strategic cooperation discussions andsigned agreements for 2023 annual cooperation objectives withleading industry enterprises, such as COFCO Group, Yihai Kerry,and Xiamen C&D. This collaboration has increased raw materialcredit sales, strengthened complementary advantages inlogistics and warehousing resources, and facilitated informationsharing on industry research, collectively contributing to thehigh-quality development of the industry.
Establishing Green Channels
In cases of resource limitations and macro-environmentalin?uences, the Company collaborates with suppliers to opengreen channels, ensuring a smooth supply of goods.
Utilizing Financial Tools
The Company employs flexible use of financial tools,leveraging futures hedging and other methods to manageprice ?uctuation risks.
Enhancing Transportation and Supply E?ciencyBy utilizing suppliers' o?site warehouses or having supplierstransfer goods to company warehouses in advance, theCompany ensures delivery needs in certain regions,transforming long-haul transportation cycles into shorterones and improving delivery e?ciency.
Implementing Dual Procurement
The Company has strengthened the reserve for special rawmaterials and those susceptible to supply disruptions.
Improving Supply ChainManagement
Growing Togetherwith Partners
New Hope Liuhe strictly adheres to national laws and regulationssuch asthe Bidding Law of the People's Republic of Chinaandthe Regulation on the Implementation of the Bidding Law of thePeople's Republic of China. The Company has established normssuch asthe Management Methods for Raw Material Suppliers andSupply Channelsandthe Management Methods for Raw MaterialSuppliersto standardize the access, comprehensive evaluation,and exit management process for suppliers. We have improvedlong-term communication mechanisms with suppliers and built ahigh-quality supply chain management system, ensuring mutuallong-term growth.
The Company establishes admission criteria for suppliers,standardizes the supplier admission process, and strictly veri?essuppliers' qualifications. On-site evaluations of suppliers areconducted to focus on key aspects such as quality management,supply capabilities, and the production environment. For feedadditive suppliers, a cross-departmental inspection team is formedto evaluate their technical processes and quality control measures.
During regular or periodic evaluations, suppliers who violatelaws and regulations or fail to meet contractual requirements areclassi?ed as D-category suppliers and removed from the Quali?edSupplier Directory, and will be blacklisted and disqualified. Anappeal channel is provided before suppliers are blacklisted,ensuring the scienti?c and objective nature of the exit mechanism.
Full Lifecycle Management
Securing raw material supply security and mitigating supplychain risks are crucial tasks for the livestock industry. NewHope Liuhe has developed a comprehensive risk analysismodel and assessment mechanism, enabling thoroughevaluation of risk identi?cation, potential risk-related losses,and specific risk mitigation measures across differentsupplier types. This strategy fosters a resilient supply chain,guaranteeing the quality and safety of raw material supplieswhile effectively preventing potential risks in the supplychain. In 2022, the Company's raw material supply remainedstable, with no production impacts due to shortages.
Strengthening Supplier CollaborationThe Company has forged strategic relationships with99 leading enterprises in the industry, strategicallyincorporating multiple supplier channels to secure a stablesupply of feed raw materials.
Monitoring Market Trends
The Company has established an industry research centerto proactively assess and forecast market trends, guidingvarious units to increase or decrease raw material reservesbased on market conditions.
Preventing Supply Chain RisksProcurement and Admission
The Company conducts quarterly and semi-annual evaluations ofraw material suppliers. An annual review panel from the technical,quality control, auditing, and financial departments examinessuppliers based on factors including regulatory compliance,supply punctuality, quality rates, price advantages, and contractperformance. Suppliers are classi?ed into A, B, C, and D categories,with di?erentiated management mechanisms applied accordingly.
Comprehensive Evaluation
Exit Mechanism
Total suppliers
9,415Mainland China suppliers5,303
Overseas suppliers
4,111
Suppliers from Hong Kong,Macau, and Taiwan
Annually reviewed suppliers
3,854
Suppliers passing qualityassessments
%
Suppliers terminated dueto environmental and socialissues
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with HopeCorporate Governance
Striving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility ReportExploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
Enterprisefor People'sWell-being
Safeguarding Lifewith Life
We uphold quality as our foundation and pledge to provide consumers withpremium products and services. Driven by our corporate mission of "pro?ting thefarmers, bene?ting the consumers", we continuously enhance our food safetymanagement system, implement scientifically precise feeding practices,and promote the research and development of nutritious and healthy meatproducts, in the hope of o?ering consumers more nutritious, healthier, andsafer high-quality food. Leveraging our brand and scale advantages, wecontinuously optimize our feeding services, safeguarding the basic rights ofour customers and achieving mutual-bene?cial growth together.
Contributing to the United NationsSustainable Development Goals
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Green Industry
Sustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with HopeCorporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growthFood Quality and Safety Management System throughout the Industry Chain
2022 Food Safety Technology
Innovation Award?The 6
thChina Animal Health and FoodSafety Conference2021-2022 Food Safety Integrity
Organization?The 20
th
China Food Safety Conference
Strengthening Food Safety
New Hope Liuhe steadfastly upholds the food safety managementconcept of "there are no small matters in product quality control,and the responsibility for food safety is greater than anything else."We strictly abide by the "Three Concessions, Three No-Tolerance"principles, and have set up a comprehensive, traceable quality andsafety management system that spans from the farm to the dining table.Proactively conducting quality and food safety trainings and audits,we are committed to producing safe, high-standard meat products,ensuring that people have access to trustworthy meat.
Three No-TolerancePrinciples
ThreeConcessions
Principles
Not letting go withoutuncovering the causes ofsubstandard outcomes
When production costs con?ictwith food safety, food safetytakes precedenceWhen development speedcon?icts with food safety, foodsafety takes precedenceWhen system processescon?ict with food safety, foodsafety takes precedence
Not letting go withoutidentifying the personresponsible
Not letting go withoutimplementingimprovement measures
Based on strict compliance with relevant laws, regulations, and industrystandards, the Company has developed guidelines for special foodsafety management and measures for quality and safety inspectionmanagement tailored to the characteristics of different industries,including the poultry industry, pig farming industry, and food industry. Toensure food safety throughout the entire supply chain, it has establisheda comprehensive system of management regulations, includingtheManagement Rules for Food Safety Red Line,Management Measuresfor Food Safety Supervision and Sampling Inspection 2.0,ManagementMeasures for Food Crisis, andImplementation Rules for Food SectorInspection 2022 Ed.
Full Lifecycle Management
"Three Concessions, Three No-Tolerance" Principles for Food Safety
To further enhance the management level of foodquality and safety, we have implemented a three-tier system consisting of the Food Safety and QualityManagement Department at headquarters, the FoodSafety Management in the business line, and the Safetyand Quality Department of subsidiary companies.This system aims to promote the implementation andachievement of the management goals of food safetyand quality.
There are no small matters in product quality control,and the responsibility for food safety is greater than anything else.
ProductInnovation
ProductconceptualizationProduct developmentand implementationMarket exit managemen
ProcurementManagement
Management of entry and exit ofsuppliersAcceptance, storage, and usage of rawmaterial and packaging materialDisquali?cation management
FeedingManagementManagement of entry and exit offeeding input materialsFoster managementAcceptance of livestock andpoultry for fostering
MarketManagement
Consumer demand managementProduct conceptualizationProduct maintenancemanagementMarket exit management
Consumer DemandsInput
Consumer SatisfactionOutput
Process Managementthroughout the Industry Chain
Relevant Supportand Assurance
Quality
performance
Data
management
Quality
improvement
Safety and Quality Performance and Improvement
In-process quality
monitoring
Inspection and
evaluation
Risk
management
Safety and Quality Monitoring and Evaluation
Laws andregulations
System/standard
management
HACCPmanagement
Food safety
protectionTraceabilityand emergencymanagement
Inspection
management
Personnel and
capability
Budget
management
Quality
communication
Quality
informationization
Cleanliness, process, and in-processinspectionEquipment maintenanceCalibration of measuring instrumentsOEM admission, operations, and exitmanagement
Product storage andtransportation managementProduct release managemen
Production OperationsWarehousing and LogisticsSales ManagementConsumer Communication
Dealer admission, operation, and exitmanagementPromotional product admission,acceptance, and usage managementReturns management
Consumer complaintmanagementInquiry and feedbackmanagement
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with HopeCorporate Governance
Striving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
We carry out certi?cations for global food safety management systemsand standardized quality management systems, for the purposeof enhancing the international competitiveness of the Company inthe food industry. As of the end of 2022, we have obtained plenty ofcertifications, including 67 China HACCP Food Safety ManagementSystem Certifications, 11 FSSC 22000 Food Safety SystemCertifications, 3 BRC Global Food Safety Standard Certificationsfor the UK retail industry, 2 ISO 22000 Food Safety ManagementSystem Certi?cations, and 13 ISO 9001 Quality Management SystemCerti?cations.
In accordance with the characteristics of each industry, we havedesigned corresponding quality and safety inspection methods.Regular quality and safety inspections are conducted to makeevaluations in each factory. Non-compliant practices are requiredto be rectified within a specified period. Additionally, we analyzethe typical problems and excellent practices identified during theinspection process and conduct training and exchanges to promotemutual improvement. In 2022, a total of 179 inspections wereconducted in the subsidiaries (including laboratories) of the food andfeeding industries.
To address the technical challenges in quality and safety duringproduction and operations, we have established a mechanism forfood safety technology research, development, and innovation thatcovers the entire industry chain, aiming to provide solutions. In 2022,we collaborated with China Agricultural University (CAU) to develop apre-slaughter drug residue detection technology for live pigs. With agroin sampler for muscle tissue sampling and testing, issues relatedto the withdrawal period of drug in the feeding stage and the safetyveri?cation at the time of slaughter were addressed. This ensures thesafety of drug residues in pigs before they reach the slaughterhouse,?lling the previous technological gap.
Conducting "Food Safety Month" activities to disseminate theconcept and goals of the Company's food safety to employees,customers, and suppliers, promoting shared responsibility andshared bene?ts.Providing specialized training for personnel in di?erent positionsand conducting assessments for all participants. In 2022, weconducted 60 training sessions at the corporate level, reaching6,094 individuals; 74 sessions at the industry level, reaching3,111 individuals; and 840 at the subsidiary level, reaching 31,000individuals.
Promoting the Certi?cation of Quality and SafetyManagement Systems
Strengthening Supervision and Management ofQuality and Safety
Improving Technical Capabilities in Qualityand Safety
Cultivating a Culture of Quality and Safety
Conducting
1,026
training sessions and traininga total of
45,432
individuals.
Since 2019, we have been continuously refining the "SafetyGuardians" training program, focusing on enhancing food safetyawareness and capabilities. With a specific focus on four keypositions, we have developed customized professional courses,trained experienced instructors, and established a comprehensivetraining model for food safety. In 2022, a total of 7 courses weredeveloped and 18 instructors were trained as part of this program.
Case Study
Safety Guardians: SafeguardingFood Safety
During the feeding stage, each pig isequipped with a unique identificationear tag to ensure full traceability. In theproduct processing stage, each productis equipped with an anti-counterfeit QRcode that allows for verification of the"Antibiotics-Free" certi?cation mark.
We have institutedthe Broiler ChickenTraceability System and StandardizedProcess,designed to standardize themarkings and procedures that allow forthe traceability of our product processingsteps.
We have establishedthe Food IndustryProduct Traceability Management System.This system delineates the responsibilitiesand authorities during the producttraceability management process,outlining requirements for the traceabilitysystem, traceability drills, traceabilityverification, and other associatedmanagement activities.
Pig Farming IndustryPoultry IndustryFood IndustryInformation Traceability SystemFeedProduction
FeedData
FeedingContracts
DrugResidueTest Data
ProductionBatch Data
DeliveryData
ConsumerFeedbackdata
Slaughter/Processing
StorageDistribution
ConsumerFeedbackFeeding
EBS/ Spot
Check
Blue-And-WhitePorcelainEBSSystem
SpotCheck/ IotMonitoringPlatform
EBSSystem
EBSSystem
FoodSafetyTraceabilityPlatform
We attach great importance to food safety traceabilitymanagement. By establishing the EBS electronic system,we integrate information technology into every stage ofthe industry. We also employ a food monitoring system topromote information traceability across the entire industrychain, from feeding and feed production to slaughter,processing, and end-point sales, creating a solid firewallfor food safety. In addition, each subsidiary company isrequired to conduct at least one traceability drill annuallyto ensure the e?ectiveness of this mechanism.
Product Traceability Management
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with Hope
Corporate Governance
Striving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growthEnhancingNutritional ValueWe prioritize the nutritional value of our food, utilizing scientificmethods in livestock and poultry farming to improve animalfunctions and meat quality. Guided by the principle of "good feed,authentic ?avor, safe meat", we hope to provide customers withmeat products that are safe, nourishing, healthy, and delicious.Our continuous efforts in enhancing the accessibility ofnutrition are aimed at improving consumers' health levels.
We uphold advanced breeding and rearing principles andtechnologies. Healthy growth of pigs is ensured by insisting onselective breeding, promoting the development and applicationof feed nutrition technology, regulating the management ofveterinary drug usage, and strengthening disease preventionand treatment.
Precise and Healthy Breeding
We build a sustainable breeding system that spans the entireindustry chain, cultivating specialized breeds with a focuson high-quality meat varieties and accompanying strains. Inaddition, we conduct carcass slaughter measurements on pigsand, in conjunction with developing live body measurementtechnologies, enhancing the biological functions and meatquality of our pigs. In 2022, the average intramuscular fatcontent in our core herd has reached 2.2%.
Advancing Selective Breeding
By utilizing our self-developed "Hongtong" digital nutrition system,we strengthen our formulation techniques, promote precisenutrition, and make tailored nutrition plans for pigs based on theirbreed, region, season, growth stage, and health status.
Optimizing Nutritional Formulations
We strictly comply with national regulations on the use of veterinarydrugs, forbidding any pig farm or breeder from purchasing, storing,or using prohibited drugs. For commonly used antibiotics, wefollow a rigorous procurement process to acquire legal products.We strictly manage the in-field drug usage process to ensure therational and precise use of medications through measures suchas reasonable applications, veterinary approvals, warehouse
Ensuring Strict Use of Veterinary Drugs
We have developed a Bio-safety Management Manual and setup a Bio-safety Management Team under the direct leadershipof the general manager, with the technical director takingcharge of its implementation. This team conducts bio-safetyrisk assessments for pig farms, promptly formulates preventivemeasures, and continuously improves the bio-safety plans.In collaboration with several domestic research institutions, wepersistently conduct research on disease control and pathogens,continually optimize disease control and purification methods, and assistin developing customized programs for controlling major diseases.All our pig houses are enclosed structures fitted with a three-tier air filtration system, mitigating airborne transmission ofviruses. We enforce stringent entry management for personnel,materials, and vehicles, ensuring bio-safety measures aree?ectively upheld, thus securing the health of our pigs.
Strengthening Disease Prevention
supervision, and usage registration. We establish drug usagefiles, record every usage and conduct regular inspections.Consequently, there have been no incidents of drug residuesin our pig farming operations throughout the year.
Comfortable Environment
The breeding farm adopts high-standard human-gradestructures and insulation measures to ensure a warmenvironment during winter and a cool one during summer.Furthermore, stringent measures are taken to ensure thatall equipment and materials used pose no harm to theanimals.We provide appropriate living spaces tailored to the di?erentbreeds and growth stages of the animals. E?ective measuresare implemented to manage stocking density, preventingovercrowding and excessive humidity.Our intelligent environmental control system enablesreal-time monitoring of on-site environmental indicators,including temperature, humidity, PM
2.5
, and others. Thesystem also issues alerts as needed, facilitating precisemanagement of the breeding environment.
We treat animals with scienti?c farming methods, providingthem with a comfortable environment, ample nutrition,and meticulous care. We prioritize immunization, diseaseprevention, and treatment, aiming to minimize animalsuffering and stress responses while improving their overallquality of life and health.
Safeguarding AnimalWelfare
Stress Reduction
Ample nutritionThrough scienti?c feed formulation, we ensure precise nutritionto ful?ll the dietary requirements of animals throughout theirentire growth cycle.We employ an automated feeding system, which allows theanimals to freely eat and drink, thus ensuring a plentiful supplyof both feed and water.Meticulous Care
Comprehensive testing for antibodies, microorganisms, drugsensitivity, mycotoxins, and Escherichia coli is carried out onseedlings, feed, veterinary medicines, drinking water, and theenvironment to ascertain the safety of breeding inputs.We regularly flush water lines using high-pressure cleaningequipment to prevent the accumulation of biofilms in waterpipes, thus maintaining the animals' intestinal health.We implement real-time monitoring of animal health toenable early detection and treatment of any illnesses. We haveestablished a dedicated disease management team in thepig farming sector to re?ne our disease monitoring and earlywarning mechanisms, thereby ensuring the healthy growth ofour pig populations.
By employing intelligent device management and information-driven online monitoring, we minimize the interaction betweenpersonnel and animals, thereby reducing stress responsesduring the breeding process.Prior to transportation, livestock and poultry are put througha period of fasting and rest. We adopt gentle transportationmethods to minimize stress responses during lengthy journeys.We utilize humane methods such as gas stunning to minimizeanimal suffering during the slaughtering process, therebyenhancing the quality of meat post-slaughter.
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society inNurturing Happiness with Hope
Corporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
O?ering New HopeFenglan animal welfareproducts, along with 200+animal welfare testingservices.
Assisting pig farms insourcing high-qualitypiglets from local suppliersor the New Hope.
Providing preciseand tailored productpackages for scalepig farms to meet thenutritional requirementsof pigs at each stage.Strictly adhering to thefour levels of bio-safetyclassi?cation to ensure thesafety of the environmentand products.
Professionally assessingmarket trends, connectingwith multiple channels,and facilitating capital ?ow.
Addressing the challengesof di?cult, slow, and costly?nancing through the NewHope ?nancial platformand inclusive guarantee.Assisting pig farms inpurchasing insurance toprovide security throughoutthe whole process.Providing technicalguidance, on-site support,process control, andstandardized farming SOP.A data management softwarefor scale pig farms, enablingcustomers to access real-time farm data
Piglet Procurement
Nutrition Program
Bio-safety
Animal WelfareServices
Sales Services
Financing Support
Pig Insurance
Farming SOP
JianZhuBang
Pig Inventory Display
Online Diagnosis forSick PigsAnimal ProtectionProduct ProcurementPig FarmCollaboration ModelFeed Package DataSow Data AnalysisBoar Data AnalysisNursery andFattening Analysis
JianZhuBang:
Data ManagementSoftware for PigFarms
PURE Meat Sausage Series of Simpli?ed Recipe
Controlled-Calorie Chicken Breast/ Sausage
Calorie content: one pack of controlled-calorie chicken breast (approximately127 kcal) ＜ one avocado (approximately 171 kcal)Calcium-Enriched Ham Sausage
The SwineSavor Series Products with"Antibiotics-Free" Certi?cationWe have developed the SwineSavor series,which is the ?rst deep-processed pork productcertified as antibiotic-free. The pork comesfrom antibiotic-free farms. Its production strictlyfollows relevant standards, and the productsundergo testing by authoritative organizationsto ensure they are free from antibiotics orsynthetic antibacterial drugs. Additionally,products of this series have a 25% reductionin salt and contain no added monosodiumglutamate(MSG) for healthier intake.
We actively pursue technological innovation tominimize the use of artificial additives in ourproducts. Our PURE meat sausage series is freefrom arti?cial ?avors, MSG, soy protein, starchetc., providing a burden-free diet. Additionally,it provides 55% more protein (PURE OriginalFlavor) than the industry standard.
We pay attention to the fat content of ourproducts and have developed a healthy optionof high-protein and low-fat. By using xylitolinstead of refined sugar, we not only reducecalorie intake but also make it possible forindividuals with high blood sugar and diabetesto enjoy our delicious food.
While ensuring the inherent nutrition of ourproducts, we strive to develop nutrient-forti?edfoods. Our Calcium-Enriched Ham Sausage isformulated to contain a higher calcium content(120mg/100g) with more nutrition.
As a company deeply engaged in meat products, we advocate the trend of healthy and nutritious diets and actively developnutritious, healthy and rich meat products to meet the health needs of consumers, with the public's nutritional needs as ourguide.
Creating Healthy Foods
Improving Service QualityWe place great emphasis on improving customer satisfactionby continuously optimizing our service model. We strive toenhance our customer service system and standards, providingchannels for listening, communication, and feedback. We arecommitted to safeguarding the basic rights of our customersand making e?ort to create better service.
We have always adhered to the "Company + Farmers" farmingmodel. On the one hand, the Company provides technicalsupport, high-quality piglets, good feed, vaccines andmedications, as well as order collection. On the other hand,farmers provide standard farming facilities and labor for farming.This mutual-bene?cial approach allows the Company to makepro?ts while helping farmers increase their income.Throughout the farming process, we deploy on-site managers toinvestigate the farming conditions and track various indicators.They provide feeding advice and technical training to farmers,assisting them in improving e?ciency. In cases involving healthand disease issues, the managers collaborate with veterinariansand feed formulation experts to provide technical support fortreatment and feeding. In 2022, the poultry industry launchedthe "Farming Elite" training program, in which a series of trainingsessions for outstanding farm managers and technicians wereheld. The training covered various topics, including standardizedfarming shed placement technology, disease prevention andcontrol management technology, and feeding managementtechnology.
Optimizing Farming Services
Shed UpgradesWater Quality TestingWater Tank Cleaning
Technical TrainingPoultry Hatchling GrowthInspectionAntibody detection
Poultry Farming Service
Technical SupportHigh-Quality FeedHigh-Quality PigletsWater
Vaccines and MedicationsOrder CollectionPig Breeding Service
In order to help farmers improve pig breeding productivityand reduce production costs, we have launched a cooperativefarming model in scale pig farms nationwide. The objective is tointegrate industry advantages and resources, centering on nine keyservice areas. Our aim is to bring the most systematic pig farmingtechnology to pig farms, and develop suitable technical serviceprograms according to the speci?c conditions of each farm.
Case Study
Cooperative Farming Model EnhancesFarming E?ciency
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society inNurturing Happiness with Hope
Corporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
The feed after-sales team visited aquaculture farmers, providing meticulous and satisfactory services.
We adhere to the service philosophy of customer-centricity and continuouslystrive to enhance the quality of our customer service. We persistently improveour mechanisms for customer feedback and complaint resolution, providingheartfelt services to make customers more satis?ed.
Focus on Customer Experience
We value the feedback of each and every customer. They can interact with usthrough multiple platforms and channels, including the 400- customer servicehotline, WeChat official account, and our online official mall. The feedback,handled by our professional customer service sta?, is considered a valuable guidefor our improvement, by which we can enhance product quality and service levels,and strengthen customer loyalty.
The Company follows internal procedures and guidelines to handle all complaintsreceived from customers, suppliers, and partners. Corresponding measures aretaken to actively investigate and address the complaints, ensuring timely ande?ective resolution of consumer complaints. In 2022, the Company's complaint-handling rate reached 100%.
We attach great importance to optimizing customer service. In 2022, we establisheda customer evaluation system from a pilot project in the pig feed business.Satisfaction surveys targeting key customers were conducted, with directsuppliers and dealers as our focus. We also identi?ed gaps between customerexperience and expectations, and followed up on improving issues across variousindustries. Our continuous e?orts aim to re?ne and enhance service quality.
Customer Feedback Channels
Customer Complaint Resolution Mechanism
Enhancing Customer Satisfaction
Product and service complaint handlingrate
%
In order to better identify and respond tocustomer needs, we conducted a systematic andcomprehensive review of the entire customerlifecycle in 2022. We established standardizedservice processes and requirements, and piloteda full lifecycle customer management system(CRM system) in the feed business. This systemvisualizes the various stages of the customerlifecycle, enabling us to track the service processfrom the customer's perspective and improveour service. We also continuously monitorcustomer satisfaction evaluations and feedback,optimize internal management efficiency, andimprove resource allocation.
Case Study
A Full Lifecycle CustomerManagement System ImprovesService E?ciency and Experience
Zero
major incidents of informationleakage throughout the year.
O?cial Accounts of New Hope Liuhe Information Security
We strictly adhere to laws, regulations, and regulatory requirements, earnestly protect customer privacy, insist on responsiblemarketing, and make every e?ort to safeguard the basic rights and interests of our customers.Safeguarding Customer Rights
We respect and protect customer privacy, and strictly follow laws and regulationsincludingthe Cybersecurity Law of the People's Republic of China, the Data SecurityLaw of the People's Republic of China, andthe Personal Information ProtectionLaw of the People's Republic of China. Accordingly, we have established regulationsand guidelines includingthe Information Security Management Measures, TerminalSecurity Management Measures, Data Security Management Measures, andEmergencyResponse Planto identify critical areas where information leakage may occur in ourbusiness processes and formulate clear response procedures. In accordance with thePersonal Information Protection Law of the People's Republic of China, the Company hasimplemented corresponding measures to protect the personal basic information, identityinformation, biometric information, education and employment information, healthand physiological information, property information, and other sensitive informationof employees and customers. We follow the principle of least privilege, strictly limitinginternal access to employee and customer private information. The applicationdevelopment and deployment process are rigorously controlled, and sensitive personalinformation is desensitized and encrypted during network storage and transmission.In 2022, we set up the Data Security Management Committee and the Con?dentialityCommittee to coordinate the data management of New Hope Liuhe from three aspects:
state secrets, corporate secrets, and personal privacy information. We have alsodesignated confidentiality coordinators in each department to form an informationsecurity management system that penetrates all departments, and further enhance theCompany's information security management capabilities and level.In order to strengthen our employees' awareness of security, we have establisheda WeChat official account of information security that regularly disseminates rules,regulations, and cautionary examples related to information security. In addition, wehave carried out eight specialized training sessions on information security, whichencompass topics such as information security management requirements andtechniques for defense against both internal and external threats. These measuresare designed to enhance our capacity to protect information security and prevent anyleakage of customer information.
Information Security and CustomerPrivacy Protection
Revised marketing policies forthe pig farming industry in 2022:
Evaluation and Management Measures forMarketing PersonnelRegulations for Customer Management inPig SalesNotice on Standardizing Sales ProcessManagementNotice on Implementing Standardization ofSales Documents in the Pig Farming Industry
We actively comply withthe Advertising Law ofthe People's Republic of Chinaand other laws andregulations, strictly carry out compliant promotion,and resolutely prevent the dissemination of falseinformation. All advertisements and promotionalmaterials must undergo thorough review beforethey are placed on the market. This is to avoidfalse associations or interpretations of advertisingslogans, product packaging, and service namesby consumers, achieving responsible marketing.
Responsible Marketing
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with Hope
Corporate Governance
Striving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
Exploring theDevelopment of
Smart Urban andRural Areas throughTechnological Innovation
New Hope Liuhe insists on taking science and technology as the primary productivity,focuses on the R&D of core technologies in the industry, and promotes the innovationof key industrial technologies with major scientific research projects. The Companycontinues to invest in various ?elds including intelligent farming, genetic breeding, andbio-safety to release its potential and vitality through innovative development. Withthe dual engines of technological progress and digital transformation, the Company isreaching new heights with high-quality development.
Contributing to the United NationsSustainable Development Goals
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with Hope
Corporate Governance
Striving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development ofSmart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
New Hope Liuhe is actively setting up national-level scientific and technological platforms in the areas of feed and breeding toexpedite the transformation of R&D infrastructure and enhance testing conditions. By optimizing collaborative mechanisms andincentive measures, the Company aim to foster a symbiotic relationship between our R&D platforms and scienti?c talents, which willpromote a healthy cycle of technological innovation and enhance our innovation capabilities.On the farming side, we commit to providing farmers with biotechnology products that are cost-e?ective, environmentally friendly,
Driving Development throughTechnologyNew Hope Liuhe continually amplifies its commitment to technological research and innovation throughconstructing a technological innovation ecosystem anchored by four research institutes alongside aCollaborative Innovation Research Institute, promoting the conversion and application of scientificachievements, fostering an open, inclusive environment for innovation, and attracting an influx of top-tier research talent to bolster our inherent innovative capacity. Moreover, by reinforcing collaboration andexchange with industry partners, the Company collectively stimulate high-quality advancement in theindustry, sparking the impetus for industrial upgrading.
New Hope Liuhe has constructed a "4+1" science and technology innovation system. The four majorindustry research institutes: Feed Research Institute, Pig Farming Research Institute, Poultry IndustryResearch Institute, and the Food R&D Center, conduct applied research and development. The CollaborativeInnovation Research Institute focuses on forward-looking and collaborative research. The system essentiallyachieves scienti?c and technological empowerment that covers the entire agricultural, livestock, and foodindustry chain, aiding the company in achieving sustainable and high-quality development in diverse areassuch as feed, swine industry, poultry industry, food processing and safety, and animal welfare.
Technology Innovation System
Building Innovative Platforms
Decision Making
Consultation
Applied Research
Transformationand Application
Forward-lookingResearchCollaborative
Research
Science and Technology Management Committee
Feed BUPig IndustryPoultry BU
FoodIndustry
Overseas BU
Academic Advisory CommitteeAnimal Nutrition
GroupBreedingTechnology Group
Food ProcessingGroup
IntelligentEquipment GroupSafety and Environmental Protection Group
BiologicalBreeding Group
Disease Preventionand Control Group
Collaborative Innovation Research Institute
Research Management
DepartmentScience and Technology
Platform CenterScience and Technology
Achievement CenterScience and TechnologyEcological Construction
Center
Science and TechnologyProject Center
Feed Research
Institute
Pig FarmingResearch Institute
Poultry IndustryResearch Institute
Food R&D
Center
Feed Research
Institute
Pig Farming Research
Institute
Poultry IndustryResearch Institute
Food R&D Center
Collaborative Innovation Research Institute
Antibiotic-free feedBio-environmentalprotectionFeed substitutionFormulation iterationand upgrade
Food R&DFood storage andpreservationTransportation andpreservationUpgrading healthand nutrition
Livestock and poultrybreedingEstablishing feedingstandardsScienti?c upgrading ofcommodity livestock farming
Optimizing pig breedsthrough breeding engineeringBio-safety prevention andcontrolUpgrading managementtechnologiesR&D of intelligent equipment
Enhancing Innovation Capability
We have established and improved the assessment, incentive, and promotion mechanisms for research personnel. We haveformulated incentive policies such asNew Hope Liuhe Co., Ltd. Reward Measures for Encouraging and Promoting TechnologicalInnovationandNew Hope Liuhe Co., Ltd. Rewards Measures for Intellectual Labor Achievement (Trial)and other incentive policies tomotivate employees to make innovations based on their respective positions and responsibilities.
and efficient, as well as cost-leading solutions to lead the scientificupgrading of product farming. On the consumer side, we strive to developexcellent products that o?er consumers a healthy, delicious, and delightfulexperience.The four industry research institutes and the Collaborative InnovationResearch Institute focus on applied technological innovation activities,empowering industries and undertaking national key R&D programs.
A total of
science and technologyinnovation platforms, including
at thenational level and
at the provincial level.A total of
?rst-tier R&D bases and
pilot bases.
On March 9, 2022, at New Hope Liuhe's Digital Transformation and LighthouseProject Launch Meeting, Minggui Zhang, the Executive Chairman and Presidentof the Company, proposed the transformation goal of "Three Full Scopes, FourTransformations".
R&D investment: RMB
302.13
million,a year-on-year increase of
3.51
%The number of R&D personnel:
1,094
.Granted
provincial and municipal talentprogram projects cumulatively.Introduced
academician.
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with HopeCorporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development ofSmart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
In September 2022, the supply chain project of New Hope and XiamenC&D Inc. settled in Siming District, Xiamen.
Technicians bring technical services to the farms.In November 2022, New Hope signed a strategic cooperation agreement with CXIG.
Intellectual Property ProtectionNew Hope Liuhe value intellectual property protection heavily and strictly abides by relevant national laws and regulations. We haveformulatedthe New Hope Liuhe Co., Ltd. Intellectual Property Management Measuresto comprehensively strengthen the creation,utilization, protection, and management of intellectual property, hoping to promote the localization of germplasm resources as well asbreeding technologies and ultimately enhance the Company's core competitiveness.
We are committed to building "pig chips" with independentintellectual property rights, breaking the long-standing relianceon imported breeding pigs, and overcoming the bottleneck ofbreeding technology. Through the cultivation of specialized breedsand supporting lines, as well as the integration of production,academia, research, and breeding, we strive to establish acommercial system of "China's lean breed pigs", and make everye?ort to tackle the problem of "pig chips" germplasm resources.
Tackling "Pig Chips"
We have developed the Hongtong·NHF formulation system, afeed formulation system with independent intellectual propertyrights. This system has been fully launched and is implemented in148 feed factories, covering four types of feed, and involving 137nutritionists. It has accumulated a nutritional value database forover 200 kinds of non-grain raw materials. When there are changesin the availability and cost of grains and various alternative rawmaterials, the system enables rapid iteration to generate optimalformulations.
Self-developed Feed Formulation System
We have independently developed the HUGE-HOPE, a softwarefor pig management and genetic evaluation with independentintellectual property. It supports multi-trait, genomic, andSSGBLUP calculations, enabling the joint computation of breedingvalues across the entire population and generating optimalbreeding plans. By using intelligent new mating technologies,excellent breeding pigs can be maximally utilized. By incorporatingRFID technology for comprehensive traceability, the softwareenables whole-genome breeding on the basis of the five-stageselection process, which enhances the accuracy of breeding valueestimation and reduces breeding costs.
Independent R&D of Pig Breeding Software
The ?rstagro-livestock enterprise in China with a self-developed formulation system implementedacross all factories.
By the end of 2022
with1,837
patents granted.
we submitted a total of
2,763
patent applications,
Strengthening Cooperation and Exchange
We progress with social advancement, and we develop with industry growth. New Hope Liuhe actively embraces cooperation,continuously strengthens collaborations with governments, enterprises, and research institutions, etc. We also participate in theformulation of industry standards, contribute our strength and wisdom to the industry's development, and join hands with ourpartners for a better future.
We have signed a strategic cooperation agreement withChengdu Xingcheng Investment Group Co., Ltd. (CXIG). Bothparties will collaborate in the fields of agriculture, animalhusbandry, food, urban-rural environmental governance,urban development, and healthcare. We have also upgradedour comprehensive strategic cooperation with Xiamen C&D Inc.to strengthen our existing grain trade and innovate logisticscooperation for grain storage and transportation from northernto southern regions.
Cooperation and Exchange
Members of our research institutes and laboratories haveparticipated in domestic and foreign industry seminars andexchange forums to share development experiences andprovide professional advice and technical guidance for growthof the industry.
Industry Exchange
We actively participate in the formulation of national andindustry standards, includingQuality Grading of Livestock andPoultry - Chicken GB/T 19676-2022,Speci?cations for the Useof Depilatory Agents for Livestock and Poultry GB/T 41550-2022,Quality Grading of Lean Pork GB/T 42069-2022, and
General Guidelines for Bacon Quality GB/T 23492-2022. Thesestandards cover various aspects such as feed, food slaughter,and testing to promote industry development.
Standards Formulation
We have taken the lead or participated in the formulationof
national standards,
local standards, and
roup standards that have been published.
Green Industry
Sustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with HopeCorporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility ReportExploring the Development ofSmart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
sciencesettlementEach ?oor of the building is an independent intensive pig farm,avoiding frequent transfers between floors and improvinge?ciency.Considering the climatic conditions in different projectareas, the environmental control system is optimized whileensuring proper ventilation and cooling inside the facility.The design of the manure cleaning process is optimized, withthe pipelines arranged in each ?oor's deodorization room toprevent cross-contamination of manure between upper andlower levels and ensure bio-safety.
A closed-loop bio-safety system is established to cut o? thesources and pathways of transmission.A comfortable housing environment for pigs is established toenhance their health level.
Through biometric recognition, intelligent environmentalcontrol, and precision feeding, remote monitoring isimplemented in pig farms to save labor costs.Data analysis is conducted through the system, allowing forinformed decision making and necessary adjustments toproduction.
The system is interconnected with feed factories, equipmentsuppliers, and technical centers, enabling services suchas direct supervision by feed factories, remote equipmentoperation monitoring by suppliers, and comprehensiveguidance by research institutes or group technical teams.These measures aim to enhance production efficiency andproduct quality.
The building structure is optimized to save construction costs.Energy-efficient materials are used to reduce the cost oftemperature control and maintenance in pig houses in thelater stage.Combining the terrain and topography, skylights are installedto utilize natural resources to enhance the resilience of pigs.
Production units are clustered, with sows and fatteningpigs housed in the same area, reducing labor consumption,disinfection costs, and bio-safety risks caused by frequent pigtransfers.Production management is carried out by gatheringprofessionals in veterinary medicine, nutrition, breeding, andother ?elds.Industry links are consolidated, including on-site feedformulation workshops and slaughterhouses within the farm,forming a closed industrial cluster.safesave
smart
Upgrading Smart FarmsPig farms serve as the convergence and application end of intelligent breeding technologies. New Hope Liuhe will build an intelligent, digital,modern and cluster-based breeding base that integrates scienti?c research, production, training, visitation, environmental protection, andsafety. Advanced technologies such as intelligent environmental control and intelligent feeding are applied to simultaneously improveeconomic and ecological bene?ts.
New Hope Liuhe is fully promoting modernized farming. Intelligent pig farms are being built in Pinggu, Beijing, and Xinjin, Sichuan. TheCompany continuous to optimize the spatial layout of pig farms, improve equipment and facilities, and enhance the level of bio-safetymanagement for the purpose of achieving unmanned or minimally manned farm management, and drive the gradual upgrading of pigfarms towards scale, standardization, and intelligence.
Modernized and Intelligent Farming
New Hope Liuhe innovatively puts forward the "5S" building pig farming model,which addresses the challenges of traditional building farming, such as difficultiesin disinfection and disease prevention in pens, hidden biological safety risks, andinsufficient measures for preventing and controlling pig diseases. This modelcombines technology, engineering and equipment in an organic manner, e?ectivelysaving land resources, reducing operating costs in the long run, improving productionmanagement efficiency, and achieving a win-win situation in terms of social,economic, and environmental bene?ts.
Pig Farming in Multilevel Building
By the end of 2022,
projects have implemented themulti-level building pig farming model.
More Land-saving
More Environmentally Friendly
Smarter and Safer
New Hope Liuhe's intelligent pig farm in Xinjin, Sichuan, China,showcases the progression towards intelligent farming in the country.Housing nearly 2,000 sows, this facility features a ?ve-story building,an automatic ventilation system, and a comprehensive set ofautomated feeding equipment, providing a comfortable environmentfor living and breeding. The project, with an estimated totalinvestment of approximately RMB 170 million, constructs a multi-storysmart pig farm covering functions such as offices and living areas,feed workshops, breeding workshops, slaughter workshops, andorganic waste treatment areas. It anticipates a sow inventory of 1,500,expecting to yield around 13,000 high-quality breeding pigs annually,in addition to 27,000 by-products of breeding pigs.The complex consists of 5 ?oors and only occupies 30 acres of land,adopting the high-rise pig farming model. This is significantly moreland-saving compared to traditional farming methods that wouldrequire 70 acres for a pig farm of ten thousand heads.Based on the principle of "3R" (Reduce, Reuse, Recycle), we haveestablished the ecological agriculture model combining "breeding- organic fertilizer - planting", with the symbiosis of multiple speciesand multi-level utilization of quality and energy. In terms of manuremanagement, USAB + two-stage A/O and fermentation tank technologyare adopted. Solid manure and sludge are processed in the fermentationtank to make organic fertilizer. Wastewater is degraded to meet
Each floor of the pig house is designed with air filtration rooms, pigdriving alleys, deodorization rooms, and production units. Supportingfacilities include a 60-scale boar station, 40 sets of electronic feedingand measurement stations, disinfection rooms and so on. Automatedtechnology is used to regulate temperature, feeding, and controllighting. With the one-click intelligent operation of environmental control,it ensures that the temperature, humidity, and air quality on each ?oorare maintained at the optimal level for the healthy growth of pigs.In every pig house within the farm, there is an air filtration system.Following the bio-safety grading management concept of "GreatWall - Pass - Guard", different levels are divided, boundaries are set,checkpoints are established, and carriers are blocked. As a result,breeding risks are reduced and safety is enhanced.
Case Study
Intelligent Pig Farm in Xinjin: Advancing towards Intelligent Farming
agricultural production water standards, which is then supplied to theland for consumption to complete the breeding cycle. Through thisprocess, wastewater is nicely treated while soil quality is well improved.
Advantages of New Hope 5S Building Pig Farming Modal
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with HopeCorporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility ReportExploring the Development ofSmart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growthCreating A Digital EnterpriseBy targeting to the "three fulls and four transformations" digital transformation strategy under the framework of "integration ofindustry and digital management", New Hope Liuhe is driving a close coupling of business operations with digital technologies. Thisconvergence actualizes intelligent key equipment, full-scene business data integration, full-data online functionalities, and proactivefull-process management, achieving comprehensive online operations. Digital technologies are deployed across four major industriescovers poultry, food, pig, and feed, and six critical areas, including R&D, farming, production, supply chain, sales, and customer service,bolstering the Company's operational e?ciency and core competitiveness.
DomainsR&DBreedingProduction
SupplyChain
Sales
CustomerService
Products
Hongtong
PLM new productsubmissionHUGE-HOPE
Poultry - digitalbreeding platform
Production implementationmanagement system
XinsuLiaonifu MallXinkedaoXinyunFengxingbaoYungeJingzhunying
JubaozhuJingwei
Poultry breeding
marketing system
Pig slaughteringMES systemLIMS systemNear InfraredDetection (NIR)Central kitchenSMOM system
Cloud-based free-range farmingHuiyangzhuZhuxiaokang /ZhizhuxiaPig farmingoperation planningsystemZhongxin Duck -breeding
Key Digitalization E?orts in the Four Major Industries
The digital capabilities for terminal visits and refinedmanagement of marketing expenses are enhanced byutilizing the self-developed visit and sales managementsystem and marketing management system.Through the combination of Xinkedao and ZhangshangXinxian, digital capabilities of the entire process fromcustomer self-service ordering to order fulfillment areimproved. Additionally, the use of Qingbaotong and PLMfacilitates scientific decision-making for new productproposals.
Food Industry
We have achieved a signi?cant shift in our core formulation system,moving from dependency to self-developed alternatives, and thenfurther evolving to outperform the initial models. Through optimizingour formulations and focusing on precise nutrition, we have beenable to reduce costs and conserve resources.We have deepened our digital procurement practices. By providingoperational support across the entire procurement lifecycle, we e?ectivelycontrol supply chain risks. This ensures that we can maintain steadyproduction, even in the face of multiple external adversities.We have completed the digital construction of logistics primarilybased on bulk raw materials, which contributes to the secure supplyof societal livelihoods.
Feed Industry
From the onset of breeding, we have established astandard selection process for Zhongxin duck breeding.By leveraging Internet of Things (IoT) devices application,we have enhanced breeding e?ciency in key stages suchas selection, egg collection, and incubation.At the farming stage, detailed management isimplemented for feed tower equipment, feed dispensing,loading, and procurement processes, enablingautomatic collection of feed consumption data, real-timemonitoring of anomalies, and the execution of precisionfeeding.On the sales front, we have established a marketingplatform to oversee channel sales management and
enable end-to-end order management. This
allows for full process visibility and closed-
loop management, covering every step
from customer order placement, orderdelivery, and logistics weighbridgemonitoring, to after-sales service.
Poultry Industry
On the breeding side, we have developed and promoted big datamatching models to identify and match "excellent" breeding pigs.Business is driven through the pyramid supply-demand calculationmodel to achieve the balance between the supply and demand of"excellent" breeding pigs.On the production side, we have extensively promoted the operationof breeding pigs, and established a systematic framework forplanning, procurement, warehousing, and consumption traceabilityin the ?eld of the supply chain.On the sales side, we have achieved visualization of the sales processthrough standardized and intelligent management at the sales site.We also ensure the supply of the live pig market by diversifyingtransaction modes to match the characteristics ofdi?erent regions and markets.In the realm of IoT breeding technology,we have reached phased goals inareas like temperature monitoring,networked weighing scales, andfeed tower weighing, all of whichare being gradually promoted.Simultaneously, the LighthousePig Farm project is undergoingtesting.
Pig Industry
Digital Product Matrix in Six Major Domains
XinsuLighthouse Pig Farm
Xinkedao
Liaonifu
Zhongxin Duck - Breeding
LighthousePig Farm
Xinsu provides a comprehensive digital solution forraw material procurement, covering the entire lifecyclemanagement of suppliers and procurement.
Lighthouse Pig Farm integrates various technologiesin terms of intelligentization, including precisionfeeding, weighing systems, manure scrapingtechnology, environmental control feed linetechnology, intelligent water and electric meters,and centralized control technologies. This enablesintelligent networking of key equipment, allowing foronline, detailed data gathering for core productionstages such as environmental control, feeding,and sales. Furthermore, it establishes a proactivecontrol process for remote operations and processmanagement.Xinkedao, an independent development by NewHope Liuhe, is designed to o?er superior and e?cientcustomer lifecycle management and customer servicecapabilities. It digitalizes customer order services toenhance service quality and cooperation efficiency,empowering partners through various business stagesincluding market expansion and order fulfillment. Italso bolsters the coordination capabilities in ordertracking and logistics delivery, offering customershigh-quality supply chain assurance.
Liaonifu has transitioned traditional feed sales fromoffline to online, enabling customers to self-order andfacilitating online coordination of the entire process,from order placement, payment, processing, andlogistics tracking, to financial reconciliation. In 2022,the Company traded millions of tons of feed online,ensuring a steady supply for numerous farmers.
The self-developed Zhongxin Duck breedingmanagement system utilizes big data analysis toachieve automated breeding selection. It combinesIoT devices to enable automatic grouping, automaticrecording of egg production, and traceabilitythroughout the entire incubation process. It ensuresprecise, automated, and intelligent breeding andselection.
Zhongxin
Duck
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society inNurturing Happiness with HopeCorporate Governance
Striving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
新希望六和股份有限公司 2022 年度企业社会责任报告
4546
Green
IndustrySustaining Naturethrough CircularAgriculture
The report of the 20
th
CPC National Congress stated that "Chinese-stylemodernization is a modernization where where humans and nature coexistharmoniously", which clearly outlines the new historical tasks and significantimplications of ecological civilization construction from a strategic perspective. Asan agricultural and livestock enterprise, New Hope Liuhe is devoted to preservingthe health of our planet. We protect nature through a circular agriculture model,continuously enhance our environmental management system, promote atransition towards efficient energy use and resource utilization, reduce wasteemissions at the source, and strengthen ecosystem protection. All these e?ortscontribute to the construction of a beautiful China.
Contributing to the United NationsSustainable Development Goals
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Green Industry
Sustaining Nature through CircularAgriculture
Repaying Society inNurturing Happiness with Hope
Corporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
In 2022, we established a standard model for the construction ofan environmental protection talent system, accurately mappingout the profiles of personnel in the crop cultivation sector andenvironmental protection stations, thereby optimizing the allocationof safety and environmental-focused cultivation sta?. Furthermore,we conducted tiered, targeted environmental protection trainingthrough online and offline methods, covering topics such asequipment operation, equipment maintenance, process operation,and environmental laws and regulations. We also provided timelyfeedback on training outcomes through an examination system,enhancing employees' awareness of environmental protectioncompliance and their abilities in environmental protection.
To ensure the effective implementation of environmentalmanagement tasks, we have established inspection mechanismssuch as on-site inspections and fly-by inspections. We conductregular inspections based on a 100-item inspection checklist,ensuring that at least 15 projects are inspected each month and allprojects are inspected quarterly. The issues identified during theproject inspections are recorded and used to form monthly projectrankings and quarterly industry-wide rankings, thereby continuouslyimproving our environmental protection standards.
Improving EnvironmentalManagementNew Hope Liuhe actively responds to the national requirements for green andlow-carbon development, and strictly adheres to environmental protectionlaws and regulations such asthe Environmental Protection Law of the People'sRepublic of China,Energy Conservation Law of the People's Republic of China,andEnvironmental Impact Assessment Law of the People's Republic of China.We incorporate the concept of green, low-carbon and sustainable developmentinto our organizational structure, set scientifically sound environmentalmanagement objectives, continuously improve our environmental managementsystem, provide environmental protection education and training, and manageemergency environmental incidents. We strive to achieve coordinated progressin corporate development and environmental protection.
Environmental management, viewed as a strategic issue, has been includedin the management domain of our board-level committees. We've establishedenergy-saving and environmental protection policies such asthe EnvironmentalProtection Management Regulations,Environmental Risk Early Warning andResponse Mechanisms, andEnvironmental Performance Assessment and RewardManagement Methods. Our environmental management system continues toimprove in areas such as comprehensive management, organizational structure,responsibility implementation, green innovation mechanisms, emergencymanagement, and supervision and assessment. Moreover, we optimizeenvironmental management regulations according to the unique requirementsof di?erent industries, such as improving the collaborative management betweenpollution control at the front end and environmental protection processing at theback end of the pig industry. In addition, we include environmental managementindicators in the performance rewards for management, enhancing our holisticcapacity for green development.
Environmental Management System
The Company has established an Environmental Protection Management Committeeto lead its environmental management work. We have set up a five-tier environmentalmanagement organizational structure from the headquarters to industry operation units/command headquarters, divisions/vertical teams, settlements, and subsidiary companies,ensuring that environmental protection work is e?ectively coordinated at all levels.In 2022, in line with business development, we further optimized the environmentalmanagement organizational structure. We established a Safety and EnvironmentalProtection Department at the Pig Industry Command Headquarters, and incorporatedthe Environmental Protection Institute of the Pig Research Institute into the headquarters'Safety and Environmental Protection Department, combining the two business sectionsunder one team. Moving forward, we will persist in our organizational optimizatione?orts, seamlessly integrating R&D, management, and on-the-ground implementation inenvironmental protection, thus ensuring environmental management covers the last mile.
Optimizing the Organizational Structure of theEnvironmental Management
Ensuring Environmentally-Focused Talent
Environmental Protection Inspectionand Supervision
Expenditure on environmental protection:
RMB
151.18
millionEmergency environmental incident drills conducted:
times, with
5,820
participantsEnvironmental protection training for employees:
sessions, with
25,950
participants
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society inNurturing Happiness with Hope
Corporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
Wastewater RecyclingManure Resource UtilizationPrecision in Field ReturnDeveloping Eco-Friendly Animal HusbandryAdvancing the resource utilization of livestock waste is a coreguiding suggestion ofthe 14thFive-Year National Agriculture GreenDevelopment Plan. New Hope Liuhe has always adhered to theprinciple of "promoting husbandry through cultivation and leadingcultivation through husbandry." We actively explore and implementthe circular agriculture model of "Pig - Biogas - Fertilizer - Fruit/Vegetable/Grain", which not only achieves comprehensive utilizationof manure resources and zero pollutant emissions, but also promotessoil improvement through the return of organic fertilizer to the ?eld.It allows nature to return to its original state, realizing the concept of"regenerate for use to sustain nature."
We employ the "UASB Anaerobic + Two-stage A/O" and"CSTR" processes to treat production wastewater. Thewater treated by the "UASB Anaerobic + Two-stage A/O"process meets the requirements ofDischarge Standardof Pollutants for Livestock and Poultry Breeding (GB18596-2001)andthe Standard for Irrigation WaterQuality (GB 5084-2021), and is used for ?eld irrigation.The biogas slurry produced by the "CSTR" and "blackfilm biogas" is returned to the fields, while biogasresidues are used to make organic fertilizers.
We adopt high-temperature aerobic fermentation technology,using active microorganisms to carry out high-temperatureaerobic fermentation of livestock and poultry manure.Following the biological decomposition and maturation oforganic matter in pig manure, we produce safe and high-quality organic fertilizer, which is applied to nearby fields toimprove soil structure, enhance soil fertility, and improve cropquality.
We are steadily exploring and establishing standard modelsfor returning waste to the fields of different crops, aimingfor precise utilization of this process. In 2022, we conducteddetailed examinations on winter wheat and fruit trees before,during, and after returning waste to the ?elds. By establishinga crop database, we have enhanced the precision of managingand returning livestock and poultry waste to the ?elds.
Pre-Return
DuringReturn
Post-Return
We measure the content of soil nutrients such as nitrogen,phosphorus, potassium, and organic matter, as well asindicators like COD, nitrogen, and phosphorus in treatedwater and biogas slurry. By combining these parameterswith crop growth needs, we determine the amount to bereturned to the ?eld, ensuring a reasonable irrigation volume.Throughout the crop growth period, we monitorphysiological indicators such as plant height, stemthickness, and leaf area, while continuously supervising soilphysical and chemical properties.We measure crop quality indicators such as the glutenstrength, starch, and crude protein content of wheat, andthe vitamin C, reducing sugar, and acidity levels of fruits, toensure the quality of the yield.
The Ningming Xinhao Agricultural and Livestock Co., Ltd. farm is located in TingliangTown, Ningming, in the southwestern part of Chongzuo City, Guangxi ZhuangAutonomous Region. The region is predominantly mountainous and hilly with theprevalent soil types being latosols, red earth, and yellow earth. However, the soils areseverely deficient in phosphorus and potassium, resulting in poor fertility retention.Adhering to our philosophy of "promoting husbandry through cultivation and leadingcultivation through husbandry", we convert breeding waste into organic fertilizerand reintroduce it to the ?elds. This not only provides nutrients to the vegetables butalso improves the soil quality. Despite its modest size of twenty acres, this vegetableplot can yield thousands of kilograms of vegetables each month, contributing to themajority of vegetable supplies for the daily meals of our over 400 company employees.This ensures everyone has access to safe and reliable vegetables.
Case Study
Manure Returns to Fields Enhancing Soil Fertility: ABountiful Harvest at Tingliang Project
po
ul
tr
y
ma
n
u
r
e
L
i
v
e
s
t
o
c
k
a
n
d
C
r
o
p
s
C
u
lt
i
v
a
t
e
d
Lan
d
W
a
s
t
e
w
a
t
e
r
100,000
tons offermented manure produced
145,000
acres ofsupporting absorptive land, including1,600,000
kilogramsof fresh fruits and vegetables produced
60,000
acres of farmland
16,000,000tons of treated water returned tothe ?elds for irrigation
Enterprise for People's Well-being
Safeguarding Life with Life
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society inNurturing Happiness with Hope
Corporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
Accelerating Photovoltaic Construction
All our pig farming facilities are equipped with biogasgenerators or biogas boilers, optimizing the use of biogasproduced during the anaerobic fermentation of pig manure.After purification, the biogas is utilized for electricity andheating within the facilities, thus reducing both electricityusage and gas consumption. In 2022, the recycling volume ofbiogas was 240 million cubic meters.
Promoting Biogas Utilization
Qingdao Liuhe Wanfu Food Photovoltaic ProjectWeifang HeshengYuan Food Photovoltaic Project
In 2022, we prioritized the research on photovoltaicconstruction models, site selection criteria, and the risks to beavoided during the construction process. Based on the speci?ccircumstances of each sector, we developed a "three-step"plan for the construction of photovoltaic projects: pilot projectson a small scale during the preliminary stage to summarizeexperiences and lessons learned, thorough investigation andstrategic tendering for the photovoltaic project reservoir duringthe intermediate stage, and rapid promotion of photovoltaicproject construction across all sectors according to unifiedstandards during the later stage.By the end of 2022, we have completed nine photovoltaicconstruction projects such as the Beijing Pinggu 5S Pig Farm,
Responding toClimate ChangeClimate change represents a shared challenge for allof humanity, and addressing this issue is pivotal to thesustainable development of the Chinese nation and thedestiny of mankind as a whole. New Hope Liuhe is activelyaligning with the dual carbon targets, striving to achievethese goals through a multitude of strategies including cleanenergy transformation, unearthing potential energy e?ciency,optimizing feed formulas, and promoting biological carbonsequestration. Additionally, we are actively implementingcarbon trading operations, thereby making positivecontributions to mitigating and adapting to climate change.
We actively promote the comprehensive utilization of cleanenergy such as photovoltaics and biogas, optimize the energystructure, reduce the use of petroleum energy, and assumeresponsibility for emission reduction.
Clean Energy Conversion
Shandong Jiaxiang Slaughterhouse, and Beijing Qianxihe FoodCompany. These installations generated 10.66 million kWhover the year, equivalent to a reduction in CO2 emissions of10,628 tons.
The Rugao New Hope Sow Factory II collects manure that, after solid-liquid separation, undergoes a three-stage anaerobic process involving USR,black membrane biogas digester, and UASB, producing biogas. This biogas is stored in a double-membrane gas holder until an adequate amountis accumulated, and then, after puri?cation, it's used to power a biogas generator for the factory's use. Moreover, the treated water is used forirrigation of the winter wheat and rice crops grown on the factory site, which not only conserves irrigation water but also facilitates biological carbonsequestration through the planted crops.
Case Study
Biogas Power Generation at Rugao Xinhao Sow Factory II
Emission Reduction Performance of Biogas Power Generation
Annual equivalent CO
reduction Approximately
tons
Sow inventory6,000 heads/year
BiogasApproximately240,000 cubicmeters
Biogas power
generationApproximately
300,000 kWhWater returned to ?elds
Approximately 60,000
cubic meters
Cultivated crops
400 mu
Equivalent CO
reductionApproximately 300 tons
Biological carbon
sequestrationApproximately 240 tons
ManureApproximately180 cubic meters/day
445,862.901,775,263.75
IndicatorUnit2022
Greenhouse Gas Emissions
? Scope 1: Greenhouse gas emissions include those from the combustion of fossil fuels such as oil, gasoline,and natural gas. The emission factor is based on the calculations outlined inthe Guidelines for Accountingand Reporting of Greenhouse Gas Emissions in the Food, Tobacco, Alcohol, Beverage, and Refined TeaIndustry
(Trial Version)released by the National Development and Reform Commission.? Scope 2: Greenhouse gas emissions include those generated due to externally purchased electricity andheat. The electricity emission factor refers to the national average grid factor inthe Guidelines for Accountingand Reporting of Corporate Greenhouse Gas Emissions
(2022 Revised Edition)released by the Ministry ofEcology and Environment of the People's Republic of China. The steam emission factor refers to the emissionfactor in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories.
0.1255
Direct Greenhouse Gas Emissions (Scope 1)?Indirect greenhouse gas emissions (Scope 2)?Total greenhouse gas emissionsGreenhouse gas emission intensity
Tons of CO
equivalentTons of CO
equivalentTons of CO
equivalentTons of CO
equivalent/RMB 10,000 Revenue
Climate Change Response PlanBy 2025, we aim to signi?cantly increase the use ofgreen energy across all sectors, and swiftly carry outthe construction of comprehensive industry-widephotovoltaic projects through uni?ed standards.We are systematically and steadily advancing the reuseof biogas in our animal husbandry sector in phases.In each sector, we are deeply exploring potential energy-saving opportunities within the production process.
Our pig farming sector is actively promoting thedeclaration and certi?cation of carbon o?set projects(including GS, VCS), with the aim of obtaining carbonemission reductions to o?set the Company's carbonemissions.
In the disposal land supporting the pig industry, weare progressively advancing the cultivation of cropsand fruit trees, as well as forest protection. We aim too?set and reduce the Company's carbon emissions byemploying biological carbon sequestration methods.
1,329,400.86
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society inNurturing Happiness with HopeCorporate Governance
Striving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility ReportExploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
Pomelo
Apple
Vegetables
Note: ?The total energy consumption refers tothe General Rules for Calculation of the Comprehensive Energy Consumption
(GBT 2589-2020)issued bythe State Administration of Market Regulation and the National Standardization Management Committee, and is converted into units of standard coal.
GasolineDieselNatural GasPurchased ElectricityPurchased SteamTotal Energy Consumption?Energy Intensity
LitersLiters10,000 Cubic Meters10,000 kWhTonsTons of Standard CoalTons of Standard Coal/RMB 10,000 Revenue
1,996,30616,328,92718,420204,055595,115533,338.74
0.0377
Energy Consumption E?ciency
UnitIndicator2022
We are actively exploring energy-saving technologies and processes. When it comes to new projects, we fully consider process designaimed at carbon reduction. For existing projects, we carry out energy-saving technological upgrades. Through a constant enhancementof our precision energy management capabilities, we aim to minimize energy consumption in all areas of our production andoperational activities.
Farmland soil and crops play a pivotal role as a major carbon storehouse on Earth, o?ering vast carbon sequestration potential. NewHope Liuhe's pig industry collectively manages over 145,000 mu of land for waste disposal, of which 60,000 mu is arable land used togrow winter wheat, corn, and other grain crops. The remaining land is used for the cultivation of fruit trees, such as apples and pomelos.With the practice of applying fermented waste to the ?elds, we achieve carbon sequestration in plants and soil storage, resulting in anestimated annual biological carbon capture of about 170,000 tons CO
equivalent.Upgrading Intelligent Systems
Technical Energy Conservation
We've introduced an energy-e?cient intelligent management system in our feed industry as a pilot project. Through intelligentmanagement measures, we improve the full-load operation rate of the factory area, reduce the proportion of equipment semi-load and no-load, enhance electricity utilization, and lower invalid power losses.
Enhancing Waste Heat RecoveryWe recover waste heat from boilers and coolingsystems, thereby reducing steam usage.Energy-Consuming Equipment ObsolescenceWe're modernizing our feed production plants by replacing existingmachines (like pulverizers, ultra-micro pulverizers, granulators, anddryers) with more energy-e?cient ones. This change has resulted inan energy usage reduction and an e?ciency boost of over 10%.
Management Energy Conservation
Data MonitoringEnvironmental Control Management
We've adopted a farm-speci?c precision managementstrategy in our pig farms, which involves controllingthe operating hours and settings of devices likelights, heating lamps, water curtain pumps, anddirect-?red machines to decrease energy use.
In 2022, we initiated the construction of an environmental datasystem and have completed the optimization and upgrade of thesecond version of the data system. We have clari?ed environmentaloperation requirements, data statistical caliber, etc., and enhancedenvironmental data monitoring and management.
Tapping into Energy-Saving PotentialPromoting Biological Carbon Sequestration
As extreme weather events are becoming more frequent and in?icting signi?cant damage across the globe, e?ective responses tothese occurrences have emerged as a shared trend in all sectors. We actively recognize the potential impacts of extreme weatheron our business operations, establishing climate report groups and initiating climate risk warnings that reach all the front linesof our subsidiary companies. By real-time tracking of the National Meteorological Administration's website, we timely reportmeteorological warnings, particularly meteorological disasters like typhoons, heavy rain, and blizzards, directly to the front lines ofour subsidiaries. This action ensures that our subsidiaries in the related regions take preemptive measures, mobilize professionalpersonnel and supplies to mitigate harsh weather disasters, and e?ectively protect our livestock and employees' safety, minimizethe impact of climate disasters on our subsidiaries.Moreover, we conduct top-down climate disaster prevention lectures and post-disaster emergency self-help training to reinforceclimate disaster prevention awareness across all levels and departments, enhancing our capability to prevent and handle naturaldisasters. In regions hit by signi?cant climate disasters, we promptly organize and coordinate various bodies at all levels to formprofessional working groups for rapid deployment for post-disaster self-rescue and production recovery.
Responding to Extreme Weather Conditions
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society inNurturing Happiness with Hope
Corporate Governance
Striving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility ReportExploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
Water Resource ManagementBecause animal husbandry consumes a lot of water and may cause waterpollution, water resource management in animal husbandry has increasinglybecome the focus of attention. We take a long-term view of how waterscarcity affects our operations and our impact on the water we share withthe communities in which we operate. Formulate production water quotas,consciously reduce water consumption, strengthen water resource recycling andreuse, and improve water use e?ciency.
Total municipal water consumption:
4.68
million tonsMunicipal water intensity:
0.3306
Tons /RMB 10,000 Revenue
Liters/Head/DaySowLiters/Head/DayFattening Pig
23.4
9.2
Type of PigUnit
Quota forWater Use inProduction
Average DailyWater Consumptionin 2022
Water Management
Water Recycling
Water Conservation
We have set a water use quota for pig industry production. If this quotais exceeded, a warning is automatically sent to alert us of the excessconsumption, enabling us to reduce water resources consumption at thesource and alleviate the pressure on wastewater treatment at the back end.
We have fitted smart water meters, established a water meter accountmanagement system, and developed a dedicated online managementmodule. This allows us to focus on analyzing instances when consumptionexceeds set standards, prompting improvements in water use.We have enhanced routine inspections, particularly checking areas inpig farms like water enclosures in sow gestation pens and float valvesbetween wet curtains, which are prone to leaks. We aim to eliminaterunning, surging, dripping, and leaking issues.
In the poultry industry, reclaimed water is reused in duck shed pre-rinsing, pre-slaughter spraying, pre-area sanitary cleaning, and irrigationof green belts, saving approximately 1.13 million tons of water annually.In the food sector, we promote the recycling of sterilization water inhigh-temperature, low-temperature, canning, and rice processingworkshops. Through a process of recovery, cooling, reverse osmosis?ltration, softening, and disinfection, we reuse water in the sterilizationstep, reducing annual water consumption by approximately 20,000 tons.
Reduction of Waste Disposal
We strictly control the generation and discharge of pollutants to minimize the impact on the surrounding environment, in strictaccordance with legal and regulatory standards such asthe Solid Waste Pollution Prevention and Control Law of the People'sRepublic of China,Energy Conservation Law of the People's Republic of China, Discharge Standard of Pollutants for Livestock andPoultry Breeding, andWastewater Quality Standards for Discharge to Municipal Sewers.
Total wastewater treatmentChemical oxygen demand (COD) treatment volumeTotal ammonia nitrogen dischargeWastewater recycling rate
10,000 Tons
TonsTons%
1,600157,500123,237
2022 Wastewater Discharge Indicators
IndicatorUnit2022
Including medical waste,pesticide and herbicide wasteproduced during the productionprocess, and waste reagents,waste acid, waste alkali,etc., generated during theexperimental
We strictly adhere tothe Standards for the Treatment of Dead Livestock andPoultryfor temporary storage and treatment. We maintain accurate ledgerrecords and strictly prohibit non-compliant methods of disposal, such asillegal storage and unauthorized burial.Separated solid manure frommanure scraping machines orsolid-liquid separators
Resulting from the breedingproduction process
Treated according tothe Solid Manure Treatment Standardusing aerobicfermentation, to produce organic manure for field fertilization.
Including animal urine, somefeces, and rinse water
Treated to meet standards through the UASB+ two-stage A/O wastewatertreatment process and then used for agricultural irrigationRegular self-monitoring and third-party water quality testing areconducted to ensure effluent standards are met prior to discharge intomunicipal sewer systems.Discharged from the Company'sadministrative o?ces andemployee cafeteria
We have established aHazardous Waste Management Systemtostandardize the collection, storage, and processing of hazardous waste.We maintain a designated temporary storage space for hazardous wasteand keep corresponding ledger records. Hazardous waste is regularlyhanded over to qualified third-party institutions for safe disposal.
Waste CategoryWaste SourceDisposal Method
Odor
BiogasBreedingWastewaterDomesticWastewater
HazardousWaste
HazardousWaste
DeadLivestockand Poultry
ExhaustGas
Wastewater
SolidManure
Generated from livestock andpoultry manure feed residues,gases excreted by the livestockand poultry digestive tract, etc.
Within our pig houses, we employ intelligent systems to control the methodsand frequency of manure removal, regulate indoor temperatures, andenhance ventilation systems to minimize odor emissions.Spraying for odor removal in dedicated deodorization rooms. By spraying,odorous gases are trapped in the liquid and odor molecules attachedto particulate matter are removed from the air after wet absorptionand oxidation. Odorous gases react with the emulsifying agents in themedication and are removed from the solution.Generated from the fermentationof livestock and poultry manure
Used as a source of power and heat within the facility
We have established aSolid Waste Management System. Designatedwaste collection points are set up within the site with clear signage andsegregation of waste, with strict rules against improper disposal methodssuch as random littering, burying, or burning.Constructionand DomesticWaste
Waste generated duringconstruction processes, anddomestic waste produced indaily life
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society inNurturing Happiness with HopeCorporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility ReportExploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
Following stringent compliance with standards such asthe TechnicalSpecifications for Pollution Prevention in Livestock and PoultryBreeding, we have established targeted management measures inourEnvironmental Protection Management System. These measuresprovide guidance on environmental protection matters at allessential stages of our projects, including site selection, construction,implementation, and approval, with the overarching goal of mitigatingthe influence on surrounding lands and biological habitats. In2022, New Hope Liuhe did not establish operations in government-designated key ecological zones or other areas with significantbiodiversity value. Moreover, our project construction did not result inany adverse impacts on protected or rehabilitated habitats.
Ecological EnvironmentProtection
Engineering Design PhaseCompletion Phase
Site Selection Phase
We strictly follow national requirements for livestock and poultry breeding facility site layout, arable landred line, and "three zones, one priority zone" ecological zoning and control requirements, avoiding areas ofnatural conservation, key ecological function zones, scenic spots, prohibited farming regions and drought-stricken areas. We do not disrupt local water sources and ecosystems.We implement an environmental impact assessment system, investigating, predicting, and assessing potentialnegative impacts on the surrounding environment from the site selection, design, and post-constructionoperation of the project, and propose preventive measures.
With a focus on source control, our design process proactively employsinnovative technologies, procedures, and equipment that produce little tono pollution. We strive to maximize the utilization of resources and energy,reducing the emission of pollutants and ecological impact from the source.
According to the ecological environment and local planting characteristics, we introduce suitableplant species and maximize green space wherever possible.Before the project's trial production or trial operation, we submit an environmental impact reportor environmental impact report form to the relevant environmental protection departments forthe acceptance of the project's environmental protection facilities.
Construction PhaseProject Operation PhaseWe strictly implement all environmentalprotection measures in the environmentalimpact report and supervise the "threesimultaneous" situations of the project.
We establish an environmental protection facilities list and set upa facilities operation and maintenance system for different types ofenvironmental protection facilities. Regular inspections are carriedout to ensure proper maintenance, achieving a 100% completion rate.We also regularly report the operational status of these facilities to thelocal environmental protection authority.We enhance soil productivity and reduce emissions by substitutingchemical fertilizers with organic manure and biogas fertilizers.
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society inNurturing Happiness with HopeCorporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility ReportExploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Successand Pursuing Excellence through their growth
On July 15, 2022, the 40
thAnniversary of New Hope and the ThirdCorporate Culture Festival was held, and Yonghao, the Company founderand chairman, led his sta? to retrace the road of hope.
Employees
Achieving
Successand Pursuing Excellencethrough their growth
Adhering to the people-oriented philosophy of development, New Hope Liuheearnestly protects the interests of employees, and creates a growth platform foremployees to achieve the goals of attracting, cultivating, and retaining the sta?.The Company shares the fruits of development with employees, promotes theculture of "running the Company like an army, a school, and a family", keeps theworkplace a harmonious place with love, and has established Meihao Mutual AidAssociation to ensure the occupational health and security of employees.
Contributing to the United NationsSustainable Development Goals
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society inNurturing Happiness with HopeCorporate Governance
Striving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility ReportExploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Successand Pursuing Excellence through their growth
Actively Adopting SuggestionsDemocratic SupervisionPerformance Feedback and Appeal
Protecting Employees' Rights and Interests
New Hope Liuhe sticks to the strategy of putting talent ?rst, providing fair employment opportunities and a competitive salary and welfaresystem for employees. It has established open and democratic communication channels, and encourages every sta? to actively participate inmaking decisions, to promote a win-win situation for both company development and employee growth.
We genuinely respect national laws and regulations, international humanrights norms, and regulations and policies of the place where we operate,such asthe Labor Law,the Company Law and the Labor Contract Law,and have formulated systems such asthe New Employee Handbookandthe New Hope Liuhe Employee Professional Conduct Guidelines. IntheStandards of New Hope Liuhe Business Conduct Guidelines, the New HopeLiuhe Red Lineand other systems, the code of conduct and requirementsfor employees in all respects are specified. The Company adheres to theprinciple of "openness, fairness and impartiality", adopts the recruitmentmethods of two-way choice, equally treats employees, regardless of race,skin color, gender, age and belief, and eliminates illegal employment suchas child labor and forced labor and employment in violation of policies andregulations, providing equal employment and development opportunitiesfor each employee. At the same time, the Company aims to build a diverseworkforce that respects the religious beliefs of each employee, takinginto account factors such as gender, culture, experience and professionalbackground. We provide special care for minority employees on the basis oftheir demands and accommodate disabled employees depending on theirphysical conditions by arranging appropriate job positions and designingreasonable working hours and labor intensity, continuously improvingworkplace inclusivity and the Company's sustainability. Employees havethe right to report any violation ofthe Employee Professional ConductGuidelinesto relevant leaders and institutions, and the Company will keepit con?dential and actively conduct an investigation.In active response to the call of the government, we have implementedpolicies to support and benefit the military and continued to promotethe recruitment of veterans as a strategic talent project. We provide1,000 targeted positions for retired soldiers every year and set up a greenchannel to offer 100 positions for retired model soldiers who have madecontributions or outstanding ones without examination. At the sametime, the Company pays great attention to the training for retired soldiers,continuously improves the mechanism for their development, andencourages special forces to become a talent output base for productionleaders, front-line veterinarians, and biological safety inspection teams.All the e?orts are made to help retired soldiers realize their values in NewHope Liuhe. By the end of 2022, there were 1,294 retired soldiers among theCompany's employees, including 181 ones in management positions and557 who have grown into professional and technical talents.
Fair Employment
The Company adheres to the people-oriented management philosophy and actively promotes democratic management through variousmeasures. We have formulated and continued to improve regulations such asthe Performance Management SystemandAccountabilityManagement Systemto safeguard employees' right to appeal. We use OA system to publicize various regulations, notices and announcements toensure employees' right to know, participate and supervise.. For the purpose of increasing employees' participation in enterprise managementand strengthening the construction of corporate governance transparency, communication channels such as email, Feishu, and public phonenumbers are kept open to enhance employees' sense of ownership.
Continuous improvement has been madein feedback mechanisms for employees.The HRSEC Hotline was set up on theemployee service platform to receivefeedback from employees on any opinions,suggestions, or questions about theCompany. Problems raised by employeesare solved without delay.
Complaint and whistleblowing channelsare open to receive complaints orwhistleblowing from employees. Acomplainant protection mechanism hasbeen established to strictly protect thepersonal information of whistleblowers.
The Accountability Management Systemandother systems have been created, and smoothchannels for employees to give feedback or appealon performance results have been established.Through such efforts, we can receive employees'opinions on performance evaluation results andhelp employees appeal against the results.
Employee Participation and Communication
Number of employeediscrimination incidents:
The proportion of ethnicminority employees:
6.3
%
50,26327,065
Male sta?Female sta?
Number ofemployees by
gender
Total number of employees77,328
Number ofemployees by
gender19,641
11,486
46,111Under 30years old51 years oldand above
30-50years oldNumber ofemployees by
age
37,651
20,670
15,162High schooleducationor below
Undergraduatedegree
Associate
degree
3,845Graduate/MBA
or above
Number ofemployees by
educational
background
ChineseMainland
overseas69,097
8,226
Hong Kong, Macao,
and TaiwanNumber ofemployees by
region
Following the principles of market orientation, we gradually establish a competitive compensation system in theindustry and provide employees with statutory and additional bene?ts to enhance employees' happiness. Wecontinuously optimize di?erentiated incentive mechanisms, establish assessment systems that are in line withemployees' development stages, and set incentive-based pay for employees and executives. The evaluation indexincludes financial, excellent operational and risk indicators, covering ESG-related assessment factors such astechnological innovation, food safety, safety production, and environmental protection.
To improve the long-term incentive mechanism and motivate themanagement team and core backbone personnel, the Companyhas formulatedthe 2022 Employee Stock Incentive Planto launchan equity incentive for the most people in the Company's history,covering 2,399 people from executives to frontline factory managersthrough a combination of employee stock ownership plan andrestricted stock incentive plan.
Based on market fluctuations, theCompany has established a bonuspool mechanism for executives inheadquarters to balance the incentivein di?erent years.
Compensation and Incentives
Employee Equity Incentive Plan
Statutory bene?ts: social insurance, housing provident fund, paid leave, parental leave (maternityleave), funeral leave, etc.Featured benefits: free accommodation, employee physical examinations, catering subsidies,housing subsidies, etc.
We have established and continued to improve the welfare system. We work to increase its diversity andmotivate employees, providing more protection for the sta? and enhancing their sense of happiness.Multiple Welfare Bene?ts
Bonus Pool Mechanism
The labor contractsigning rate:
%Social insurancecoverage rate:
%The return-to-workrate after parentalleave:
%
Enterprise for People's Well-being
Safeguarding Life with Life
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with Hope
Corporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
Top Talent Plan
Building a Platform for Career DevelopmentWe have always attached great importance to the development ofemployees, providing them with lifelong learning opportunities, helpingthem strengthen their professional skills, and supporting and assistingthem in realizing their potential. We cultivate and reserve talents for theCompany's sustainable development, providing diversified career pathsfor di?erent types of talents. The 3U model of talent promotion has beencreated, and a growth platform for employees has been built, to achievethe goals of strugglers to progress, achievers to be motivated, and thosewho take responsibility to leap forward.
In 2022, New Hope Liuhe launched an activity of talent review covering corebusiness talents across the entire industry to learn its "talent assets". The"self-examination" activity was conducted to strengthen the foundation ofthe talent system. The Company focuses on core business managementpositions and back-end business talents, and makes systematic analysisand planning for talents. We have identi?ed structure problems of talentthrough the inventory template tools, promoted organizational and teamdiagnosis at all levels, and worked with the business department to develophuman resource strategies. In addition, we have built a hierarchical andclassi?ed inventory system, evaluated talents based on the two dimensionsof "competence + potential" and used Sudoku to classify di?erent talents toallocate the talents in a lean way. In 2022, the Company's training focusedon four types of key talents, delivering resources through two majorplatforms - the co-construction of teacher and course platform & the digitallearning platform – to train 16,555 people across ten major projects.Under the talent supply chain system, great efforts have been made inplanning the training system and operating and delivering classifiedtraining for the Company's operation and management personnel. TheCompany devotes itself to the creation of online and offline learningplatforms and the construction of internal and external training resources.
Employee Training
By creating an internal training system, we aim to enhance thecultivation ability for internal talents, focus on core positions andkey employees, and design a "talent artery" to create an advancedorganization with a large number of talented sta?.
By implementing management strategies such as skill certi?cation,new employees entering the model, and remuneration based onjoint production, we aim to improve employees' abilities to bettermatch their positions, inspire their passions, and build a matureand stable front-line production team.
For 20% of management-oriented talentsFor 80% of production system talents
The Company insists on prioritizing talent management in its operations, providing employees with fair opportunities for promotion, as well assmooth development channels. We encourage employees to strengthen their employability and keep learning and improving. The IndustrialAcademy encourages employees to obtain job quali?cation certi?cates and participate in competency system certi?cation to help blue-collarworkers build career development channels.Based on the structural characteristics of the talent of the industry, we create a hierarchical and classi?ed talent system for di?erent personnel,with full coverage of all talented persons. We combine the Company's needs for talent with the talent' needs for development, promoting the co-growth of the talent and the organization. We provide management and development channels for employees who aspire to become managers,professional development channels for employees who want to become experts, and help industrial workers acquire more skills. We strive toprovide a stage for various talented employees to use their talents and achieve growth.
Career Development
Talent is the foundation for enterprises to become strongand the decisive factor in competition. New Hope Liuheprovides a growth platform for newcomers. Over the past10 years, the New Talent Training Camp has trained morethan 20,000 school-recruited graduates to enhance theirjob skills and enhance their soft power in the workplace.Through the online course of One-Step-ForwardManagement Ability Training Camp, with the focus ofimproving ?ve core competencies of role transformation,setting goals, leading the team, improving employeeperformance, and promoting their development, we haveassisted 7-8 level managers in the role transformation andimproved managers' management abilities.
An online training course was set up for middlemanagement personnel of 9-12 levels. It mainly consistsof four modules of ?nancial management, market insightand analysis, personnel and team management, anddigital thinking for general managers. While improving thegeneral managers' leadership, it also helps them solvepractical challenges and problems.
Leadership Training System - Talent PlanNew Talent 365 Plan
Elite Talent Plan
Top Talent Plan
In 2022, the Elite Talent Plan has trained
peopleand certi?ed
instructors, with a total learning timeof6097hours. The complete rate of the course was
% with a satisfaction rate of
%. The passingrate of the exam was
%.
The opening ceremony of the Executive Master of Business Administration(EMBA) Program for senior managers
As a digital learning platform that integrates employee learning, trainingmanagement, and knowledge accumulation, New Hope Academy hasrealized the closed-loop of training management through functionssuch as research questionnaires, course training, exam and competitionmanagement, community communication and learning maps, to improvethe management efficiency of employee training and promote thecompetency of employees.
Digital Learning Platform - New Hope Academy
The platform integrates with the office system, enabling users to log inconveniently and learn at any time and anywhere. By incorporating learninginto various aspects of work and combining training with practice, it plays avery in?uential role in building a learning-oriented organization.
Fostering a learning-oriented organization withdigital learning thinking:
Learning data is effectively transferred back to the human resourcessystem, enabling the automatic generation of personal learning records,which plays a vital role in talent development and review, as well as theCompany's digital transformation.
Establishing a visual and data-driven talentdevelopment path with digital tools:
The platform provides employees a platform to share their wisdom, co-create and co-build and co-share to create a learning and developmentecosystem, accumulate core knowledge assets, and enhance organizationalperformance and core competitive advantages.
Achieve organizational knowledge management bydigitalization as a carrier:
The total number ofemployees who have takeno?ine training for the year:
Total person-time of onlinelearners for the year:
357,794Active courses:
5,557
Total training hours:
25916
Study hours peremployee:
18.86
Account activation rate of the platform:
%
Enterprise for People's Well-being
Safeguarding Life with Life
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society inNurturing Happiness with Hope
Corporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Successand Pursuing Excellence through their growth
Employee bookstore by Chengdu platform
Mid-Autumn Festival and National Day entertainment activities byChongqing New Hope Company of the feed industry
Birthday party for the Xinliu team's employees in Qiandongsettlement of pig industry
Enhancing Employee CareNew Hope Liuhe regards employees as family membersand actively promotes its culture of "running theCompany like an army, a school, and a family". We createan open and inclusive work atmosphere that promotesmutual progress, continuously enhancing employee care,drawing the team closer to each other, and improvingemployees' sense of belonging, so that each employeecan fully feel the warmth of home.
We encourage employees to balance work and life,actively organize diverse activities, and help themalternate work with rest to strengthen the Company'scohesion.
We provide genuine care to employees to make them morecomfortable to work and live by implementing a series of actionssuch as consolation activities, o?ering assistance to employees whohas di?culties, and caring for female employees.Balancing Work and Life
Providing Assistance
New Hope Liuhe establishedthe Meihao Mutual Aid Associationin2014 to promote its culture of "running the Company like an army,a school, and a family", and provide better care and assistance toemployees. In 2022, the 2022 New Hope Liuhe and Meihao Mutual AidAssociation Management Measures were formulated and a work teamconsisting of company party committee members, party a?airs, andunion cadres was established. With the concept of mutual assistance,it provides timely assistance and comfort to employees in theassociation who have di?culties, and gives them strength and power.
Case Study
Adhere to the concept of goodness tobuild a mutually supportive family
Since the establishment of Meihao Mutual Aid Associationin 2014, the total number of families assisted:
1815
Membership amount in 2022:
RMB
6.788
millionTotal number of familiesassisted throughout theyear:
Membership:
47,936Relief spending:
RMB
4.483
million
Relief expenditure:
RMB
16.2162
million
Fun sports meeting by Luxin Food Company of the poultry industry
Women's Day activities by the Beijing platform o?ce
Spring Festival activities by Chengdu Hope Food Company of the food industry
A donation by Meihao Mutual Aid Association
Green Industry
Sustaining Nature through CircularAgriculture
Repaying Society inNurturing Happiness with Hope
Corporate GovernanceStriving to Uphold Long-Termism
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility ReportExploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Successand Pursuing Excellence through their growth
Investment on safetyproduction:
RMB
89.83
millionSafety trainingcoverage rate:
%
Total person-time of safety training:
879,425
person-time
Number of deaths dueto work:
Production accidents(minor injuries):
Total work-related injury rate
(minor injuries):
0.015
%
Standardizing Management SystemsImproving Organizational Construction
Actively Applying for Security Certi?cation
Developing Safety Production PlansImplementing Audit and Supervision
The Company has implemented and continued to improvevarious rules and operating procedures for enterprise safetymanagement, and formulated systems ofthe Production AccidentManagement System of New Hope Liuhe Co., Ltd.,the ProductionAccident Handling Measures of New Hope Liuhe Co., Ltd., andthe Accountability Management System of New Hope Liuhe Co.,Ltd. The Company carries out internal control management forsafety production through a safety management mechanism thatinvolves the entire process, all aspects, and all employees, to preventvarious production accidents and ensure the health and safety ofemployees. In 2022, we revised management systems for safetyproduction and accident accountability, and newly formulatedsafety management measures for limited space operations.
The Company has set up safety management institutions at alllevels and staffed full-time and part-time safety managementpersonnel, to conduct training, education and performanceassessment. Executives at all levels take the lead and promote theconstruction of an occupational health management system intheir own management scope.The Company guides its branches and subsidiaries to activelyapply for standardization certi?cation of safety production. BothChengdu Meihao and Hongya Meihao have obtained SO 45001Occupational Health and Safety Management Systems. 178subsidiary companies have obtained Safety Standard CertificateLevel 3. All efforts are made to ensure the scientificity ande?ectiveness of the safety production management system.The Company has formulated a safety production plan. In thenext reporting year, we intend to further re?ne our various safetyproduction management systems and progressively establisha four-tier system documentation. As we strive to enhance oursafety management system, we are pushing forward with acomprehensive safety responsibility system for all employees.
The Company's safety production management measures extendto all business operations, subsidiaries, and encompass everyemployee. The execution of safety policies is closely interwoven withaudit policies. The Company persistently conducts supervision andinspections of safety production, providing guidance and oversightacross various sectors to ensure e?ective implementation of safetypolicies. Furthermore, key performance indicators undergo rigorousevaluation on a quarterly basis.
Occupational Health and SafetyWe attach great importance to the safety and health of ouremployees and strictly abide by relevant laws and regulations suchasthe Prevention and Control of Occupational DiseasesandtheImplementation of the Regulations on Work-Related Injury Insurance.Adhering to the concept of safety production of "Hope together to keepsafety together", we make clear to employees the risks of occupationalhealth and promote the establishment of occupational health andsafety management systems in various business sectors, to ensure thephysical and mental health and life safety of employees.
New Hope Liuhe has established a safety production managementsystem that covers all employees and has formulated and continuedto improve rules and regulations. The Company keeps improvingits safety production management department, actively applyingfor safety production management system certification, andimplementing safety inspections and audit supervision management,to ensure the e?ective operation of the safety production managementsystem.
Strengthen Production Safety
The Company has formulatedthe Emergency Management Planandactively organized practical drills to respond to various emergencyevents that may occur in production, environmental protection,occupational health, and other aspects. We have established a soundinformation database for social rescue forces, emergency materialsand equipment reserve and emergency experts, and constructeda regional rapid rescue and treatment mechanism to enhanceemergency management capabilities in an all-around manner. In2022, the Company totally conducted 2,300 emergency drills.
Emergency Management
The Company has formulated the Emergency Management Plan andactively organized practical drills to respond to various emergencyevents that may occur in production, environmental protection,occupational health, and other aspects. We have established a soundinformation database for social rescue forces, emergency materialsand equipment reserve and emergency experts, and constructeda regional rapid rescue and treatment mechanism to enhanceemergency management capabilities in an all-around manner. In2022, the Company totally conducted 2,300 emergency drills.
Conducting Special Training
Protecting Employees' Health Rights and Interests
The Company provides pre-job safety education and training toemployees, strengthens their tra?c safety awareness, requires them towear helmets and re?ective vests, and conducts activities on safety forgrassroots employees during the safety production month.The Company has established a labor union to protect the legitimaterights and interests of employees, provided standardized compensationfor work-related accidents that have occurred, and fully comforted andcompensated related employees and their families.
Ensuring the Health andSafety of EmployeesWe are also establishing a dual prevention work mechanism toidentify and mitigate risks, building a safety education systemto elevate safety consciousness among our entire workforce. Weplace significant emphasis on long-term planning by setting updigital systems to drive the digital and smart evolution of safetymanagement.
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with Hope
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Corporate GovernanceStriving to Uphold Long-Termism
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
新希望六和股份有限公司 2022 年度企业社会责任报告
6970
RepayingSocietyin NurturingHappiness with Hope
New Hope Liuhe values social bene?ts and practices corporate responsibilities.The Company spares no e?ort to stabilize production and guarantee the supplyto avoid food supply problems caused by price ?uctuation risks. Meanwhile, weare committed to meeting the needs and expectations of the people to create ahigh-quality public welfare brand, bringing corporate support to the communitiesand the public, and sharing the development results with the public. In this way,greater social value in the new era is created.
Contributing to the United NationsSustainable Development Goals
In May 2022, the "Hope and Wish Plan" was launched in Jinyang County,Liangshan Prefecture, Sichuan Province.
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with Hope
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility ReportCorporate GovernanceStriving to Uphold Long-Termism
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
Ensuring Stable Food Supply
Ensuring Stable Food Prices
To ensure a stable food supply, collaboration with foodsupply channels, including community chain supermarketterminals, community group purchase platforms, offlinedirect supply supermarkets, and channel partners, wasfurther expanded.We pledge not to chase pro?ts or raise prices during criticaltimes and to make every e?ort to stabilize food prices.
Striving to Stabilize Production andGuarantee the SupplyIn 2022, under the in?uence of external factors such as market pricefluctuations and exchange rate risks, some regions were in urgentneed of materials and resources. The company stabilized productionand ensured food supply for Shanghai, Chengdu, and other areas.At the same time, the relevant industrial sectors actively carried outprice management, established and improved the procurementmechanism, and clari?ed the contract pricing and de?nition of rawmaterial procurement, to avoid the potential impacts resulting fromprice ?uctuation risks, and ensure price stability from the source.
Meihao Food, Kinghey, and other brands have implemented acommunity group purchase system, providing "a?ordable set meals"delivered straight to consumers. They've unveiled the "MeihaoCompanionship - Economical Meal Sets", which features a wide rangeof products such as Meihao's succulent pork, coriander meatballs,select leg meat, rib chops, and chicken wings, as well as other freshand cooked pork and chicken food items. This initiative is aimed atproviding the wider public with safe, reliable sources of meat.
Case Study
O?ering Set Menus Bene?ttingthe People
In early April, Shanghai suffered from a food shortage due toexternal factors. Tianrun Integrated Breeding Service Co., Ltd.(poultry industry), Hebei Kinghey Factory (food industry), andother companies responded quickly to dispatch productionand ensure product supply, and transferred core members intoShanghai preposition warehouses, who worked day and night tosupport sorting, loading and unloading and other food supplywork. Chengdu New Hope Group gave full play to its advantagesin supermarket logistics, sending 22 trucks of food to Shanghai,delivering more than 290 tons of food, and e?ectively guaranteeingthe supplies for supermarkets to ensure people's livelihood. InApril alone, New Hope Liuhe supplied 12,000 tons of poultry, 3,000tons of pork, and 1,150 tons of deeply processed food to Shanghai,equivalent to one chicken and one duck for every Shanghai family,helping Shanghai residents navigate through the di?cult time.
Case Study
Gathering Multiple Forces and Rushingto Ensure Supply for Shanghai
Many groups responded actively and rushed to ensure supply for Shanghai
A total of
1,000
tons of guaranteed food,nearly
220,000
items, have been delivered toChengdu's main urban area.
Devoted to CharityNew Hope Liuhe has been actively engaged in charitable activities.It has strived to create special public welfare brands, continuedto promote the public welfare projects of "Hope and Wish Plan"and "Warm Winter Action", participated in emergency responseand disaster relief work, provided the love and warmth of NewHope Liuhe in poverty alleviation, supporting the elderly andorphans, disaster relief and other aspects, joined hands with socialorganizations to solve regional di?culties, to continuously play ademonstration role in public welfare.
Warm Winter Action
Hope and Wish Plan
Hope and Wish Plan
New Hope Liuhe actively builds a special public welfare platformand develops special public welfare projects to carry out voluntarypublic welfare activities for children and students in impoverishedmountainous areas and people in poverty-stricken areas, tocontribute the warmth and care of New Hope Liuhe to specialpopulations.
Striving to Explore BrandPublic Welfare
Hope and Wish Plan
2022 marks the seventh year that New Hope Liuhe has launchedthe "Hope and Wish Plan". The Company and its subordinate unitscollected children's wish gifts, such as a school bag, a pair of shoes,a set of Han Chinese clothing, and a ball suit. The Company'semployees and socially caring people actively met the wishes ofchildren from those areas, sending the items as Children's Daypresents.Assisting
schools in oldrevolutionary base areas
Ful?lling the June 1 wishes of
2,491
children acrossthe country
Warm Winter Action
Since 2014, when 40,000 winter coats were donated to Tibetanvillages, New Hope Liuhe's "Warm Winter Action" has been carriedout for nine consecutive years and has become a brand publicwelfare activity of the Company.In 2022, New Hope Liuhe and Sichuan Yonghao Public-Bene?t CharityFoundation jointly launched the ninth season of "Warm Winter Action"with the Party Committee of the Sichuan Branch of the AgriculturalDevelopment Bank of China. They visited Luogan Village, Meigu County,Liangshan Prefecture, and passed on the idea of "changing customsand traditions and cultivating new styles of civilization". They sentdining tables and chairs to more than 600 villagers and 6,000 cartons ofmilk to kindergartens and primary schools, with a total value of materialresources of nearly RMB 200,000, bringing warmth to the Yi villagers inthe cold winter.
Total charitable donations:
RMB
9.335
millionRMB
5.382
million forpublic educationRMB
171,000
foroverseas public welfare
RMB
1.764
millionfor rural revitalizationRMB
1.179
millionfor environmental protectionRMB
839,000
forother categories of public welfare
Enterprise for People's Well-being
Safeguarding Life with Life
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with Hope
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Corporate GovernanceStriving to Uphold Long-Termism
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
Providing Assistance to Earthquake-Stricken Area of Luding County
Supporting Local Response toHeavy Rainfall by New Hope LiuheBengal Division
When trouble occurs at one spot, help comes from allquarters. We carried forward the humanitarian spirit, takingan active part in the relief work in ?oods, earthquakes, andother major social disasters, carrying out disaster relief anddisaster area reconstruction, and bringing warmth to thea?ected people.
In September, a 6.8-magnitude earthquake hit LudingCounty, Ganzi Prefecture, Sichuan Province, causing heavycasualties and property losses. People all over the countrywere concerned about the victims, and all forces rushedto rescue them. New Hope Liuhe, together with SichuanYonghao Public-Bene?t Charity Foundation, donated RMB
3.1 million of aid funds and materials to support disaster
relief and post-disaster reconstruction of the quake-hitLuding county.Meanwhile, Meihao Food, a sub-brand of New Hope Liuhe,urgently set up a special team to understand the materialneeds of Luding, who urgently made products, organized alarge number of urgently needed materials for the disasterarea, orderly transported them to the destination. In thisway, the material needs of relief in Luding were met in atimely manner. The ?rst batch of 1,100 donated food itemswas worth RMB 230,000, including canned luncheon meat,ham sausage, and energy bars.
In June, continuous rains in Sylhte caused ?ooding, leavingnine million people homeless. During the rainfall, NewHope Liuhe arranged employees to provide feed for poultryfarmers and supplied personnel and materials to helpfarmers transfer live poultry to di?erent regions. After therainfall, the emergency team was immediately organized tosort out the disaster situation of farmers and donate moneyand materials.
Providing Disaster Relief Supportto the Cianjur Area, West JavaProvince, IndonesiaIn November, an earthquake registering 5.6 on theRichter scale hit Cianjur district, West Java province,Indonesia, causing multiple casualties. New Hopeemployees in Indonesia paid constant and closeattention to the conditions of the disaster area andactively donated money and materials, which wereimmediately distributed to the victims by workersdispatched by the group. They spared no e?ort to helpthe victims to overcome di?culties together.
Putting out the Wild?re in ChongqingOvernight
In the afternoon of August 21, a huge ?re broke out in the mountainsunder the jurisdiction of Jieshi County, Ba' nan District, ChongqingCity. To thwart the ?re's potential spread to the populous regionsdownhill, the local government solicited volunteers for supporton the 23rd of August. Chongqing New Hope Feed Co., Ltd., basedin the Ba'nan district, promptly rallied a group of 10 employees topartake in the voluntary campaign safeguarding the forest break.The volunteers set up ?relines along the isolation zone, leveragingfire extinguishers, firefighting shovels, sickles, brooms, andborrowed pumps to mitigate the spreading ?ames. After a relentless24-hour struggle by the volunteers, the wild?re was brought undercontrol by the morning of the 24
thand was completely extinguishedby the following morning.Following the satisfactory completion of our mission, we receiveda message of thanks from the management of ChongqingInternational Bio City, where the company is situated: "Thecircumstances on the front lines were truly strenuous, involvinground-the-clock operations under high temperatures, severe tasks,high difficulty, and a certain degree of risk. New Hope Liuhe is anenterprise of heroes, boasting a team of courageous '?ghters' whoare assuredly capable of ?ghting and emerging victorious. We soluteto the New Hope Group!"
Responding to Typhoon Chaba
In June, heavy rains hit many parts of Yingde City, GuangdongProvince, causing urban waterlogging and ?ooding of farmlandand resulting in huge losses. Ruyuan Yao Autonomous CountyXinhao Agriculture and Animal Husbandry Co., Ltd., a subsidiaryof New Hope Liuhe, took the initiative to donate RMB 20,000 toQiaotou Town, and fully supported the people in the affectedtowns and villages to overcome difficulties. This companydevoted itself to post-disaster reconstruction, contributing tolocal economic recovery.
Supporting Emergency Response and Disaster Relief
Green IndustrySustaining Nature through CircularAgriculture
Repaying Society in
Nurturing Happiness with Hope
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Corporate GovernanceStriving to Uphold Long-Termism
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Employees Achieving Success
and Pursuing Excellence through their growth
About this ReportThe New Hope Liuhe Co., Ltd. 2022 Annual Corporate Social Responsibility Report (hereinafter referred to as "this report") is the 15thCorporate Social Responsibility Report publicly released by New Hope Liuhe Co., Ltd. This report aims to present the Company'spractices and performance in operations, environment, and social domains during 2022, re?ecting the Company's endeavors in industrialdevelopment, industry collaboration, and social responsibility.
Timeframe
Report Scope
Basis for Preparation
Terminology
Data Clari?cation
Report Access
This report covers the period from January 1, 2022, to December 31, 2022. Certain descriptions and data may be extended beyond thistimeframe as deemed appropriate.
he scope of this report is consistent with the Annual Report. Unless speci?cally stated otherwise, all currencies referred to in this report are in RMB.
The Sustainability Reporting Standards from the Global Sustainability Standards Board (GRI Standards 2021 Edition)The ISO 26000: Guidance on Social Responsibility (2010)from the International Organization for StandardizationNational StandardGuidance on Social Responsibility Reporting
(GB/T 36001-2015)Guidelines for Corporate Social Responsibility of Shenzhen Stock Exchange Listed Companies
For ease of expression and reading, New Hope Liuhe Co., Ltd. is referred to as "New Hope Liuhe," "the Company," or "we" in this report.
The sources of data used in this report include publicly available government data, internal company statistical reports, and third-partydocuments and reports. Financial data disclosed in this report, if inconsistent with the Annual Report 2022 of New Hope Liuhe Co., Ltd., willfollow the Annual Report as the ?nal reference.
Both Chinese and English versions of this report are available in digital and printed formats. The digital version can be accessed anddownloaded from the information disclosure website (www.cninfo.com.cn) designated by the Shenzhen Stock Exchange or our company'swebsite (http://www.newhopeliuhe.com). If you have any questions or suggestions concerning this report, please feel free to email us at000876@newhope.cn.
Business Localization
Community Impact Assessment
Cooperation in Educational Resources
Promoting Regional Development
New Hope Liuhe actively responds to the "going out" strategyand promotes the overseas breeding business. Based on thefunds and resources, it brings advanced breeding technology tooverseas regions, provides teaching, creates jobs, and helps thesurrounding regions of overseas divisions achieve sustainabledevelopment.
Before setting up divisions overseas, the Company evaluatesthe development of overseas business, understands the policysupport, and carries out in-depth market research. Before theconstruction and operation of the company, New Hope Liuhecarefully considers the location and carries out an environmentalimpact assessment. All the overseas businesses of the companypass the environmental impact assessment review. At the sametime, the potential social impact of the company is understood,and communication with residents in surrounding communitiesis carried out when necessary to ensure that the impact of thecompany's operation on surrounding communities is minimized.
A local talent training strategy is implemented to createmultiple jobs and encourage local talents to take up criticalpositions in the company.The Egyptian division has directly created nearly 900 jobs in the localarea, enabling the local breeding to be 85 million birds per year,and indirectly creating over 30.000 jobs. 35 local o?cials have beenpromoted accumulatively, and the proportion of cadres from localareas has increased year by year.
Standardized Operation Manual for the Development of LocalNew Raw Materials, Development Procedures for ImportedNew Raw Materials, and other local procurement policiesand norms are formulated to drive local development andenhance the competitiveness and influence of the enterprisein surrounding areas.
New Hope Liuhe has created cooperation memorandumswith six schools in the south and north of Myanmar, launchedscholarship and internship programs with Yezing Universityof Animal Husbandry and Veterinary Medicine, providedscholarships of about RMB 20,000 to 30 students everyyear, and launched annual internship programs with MobyUniversity of Science and Technology and Dongyu Universityof Science and Technology.New Hope Liuhe focuses on the development of local talentand has established long-term talent cooperation with CairoUniversity, Alexandria University, the University of Sadat City,Beni-Suef University, Suez Canal University, and KafrelsheikhUniversity. Every year, the Company sets up internshipprograms, providing many positions in veterinary medicine,animal protection, sales, quality control, laboratory testing,breeding, and administration for local college students.
The Myanmar division donated 10 million Kyat to Huade School,a Chinese primary school in Yangon, for the construction ofthe campus in 2019, and another 3 million Kyat in 2022 for theconstruction of a new school building.Indonesian Agriculture and Animal Husbandry Companydonates stationery and eggs for impoverished students ofschools near the company.The Egyptian division participated in the large-scale Ramadancharity event held by the Chinese Embassy and Chamberof Commerce with the theme of "Friendship, Growth andDevelopment". It was larger than any other event ever beenheld. More than 30 Chinese enterprises in Egypt participatedin the activity and raise a total of 1 million Egyptian pounds tohelp the local poverty-stricken people.
Carrying out Public Welfare Donations
The Egyptian division cooperateswith local universities
The Myanmar division providesdonations for Chinese primaryschools
The Indonesian division providessupplies to needy students
The Egyptian divisionparticipates in the Ramadancharity activity
77787877
Responsibility Management
New Hope Liuhe Co., Ltd. 2022 Annual Corporate
Social Responsibility Report
Devoted to Charity413-1About this Report1/2-2/2-3/2-4
Promoting Regional Development3-3/203-1/203-2/413-1Indicator Index Table?
Striving to Stabilize Production and Guarantee
the Supply
413-1Repaying Society inNurturing Happinesswith Hope
Ecological Environment Protection2-25/3-3/304-1/304-2
Responding to Climate Change
201-2/3-3/302-1/302-3/302-4/302-5/305-1/305-
2/305-3/305-4/305-5
Stakeholder Communication2-29ESG issue management3-1/3-2ESG Organizational Structure
Strengthening Risk ManagementGrowing Together with Partners
2-9/2-12/2-13/2-14
205-1
Enhancing Nutritional Value3-3/416-1
Developing Eco-Friendly Animal Husbandry201-2/3-3/
Building a Platform for Career Development3-3/404-1/404-2Occupational Health and Safety
3-3/403-1/403-2/403-3/403-5/403-6/403-7/403-
8/403-9
Water Resource Management3-3/303-1/303-2/303-3
Improving Environmental Management2-18/307-1
Protecting Employees' Rights and Interests
2-7/2-19/2-23/3-3/401-1/401-2/405-1/406-1/408-
1/409-1
Driving Development through Technology2-28Creating A Digital Enterprise2-6/416-1
2-6/3-3/308-1/308-2/414-1/414-2
ESG Strategic Planning
Food Saving Special Action: ComprehensiveProtection of Food SecurityBuilding a Resilient Foundation through PartyLeadershipAdherence to Business Ethics
Five-Five Project: Continual Support for RuralRevitalization
2-22
2-6/3-3/203-2/416-1
?
Strengthening Food Safety2-23/2-25/3-3/416-1/416-2
Reduction of Waste Disposal2-25/3-3/306-1/306-2/306-3/306-4/306-5
Enhancing Employee Care401-2
Upgrading Smart Farms2-6/416-1Improving Service Quality3-3/417-1/417-2/417-3/418-1
2-25/2-26/3-3/205-2/205-3/206-1
3-3/203-1/203-2/413-1
Corporate Governance2-9/2-10/2-11/2-12/2-27/405-1
Benchmarking with reference to GRI standardsReporting frameworkMessage from the Chairwoman
Company pro?le2-1/2-6/201-1Our 20222-28/201-1About NewHope LiuheResponsibilityManagement
Responsibility FocusCorporateGovernance: Strivingto Uphold Long-TermismEnterprise forPeople's Well-being:
Safeguarding Lifewith LifeExploring theDevelopment ofSmart Urban andRural Areas throughTechnologicalInnovationGreen Industry:
Sustaining Naturethrough CircularAgriculture
EmployeesAchieving Successand PursuingExcellence throughtheir growth
2-22Indicator Index Table
Enterprise for People's Well-being
Safeguarding Life with Life
Exploring the Development of
Smart Urban and Rural Areas throughTechnological Innovation
Green Industry
Sustaining Nature through CircularAgriculture
Corporate GovernanceStriving to Uphold Long-Termism
Chengdu office address: No.376 Jinshi Road, Jinjiang Industrial Park, Chengdu,Sichuan ProvinceBeijing office address: 11F, Block A,T3, Wangjing SOHO, No.10,Wangjing Street,Chaoyang District, BeijingAddress:
(86)28 -8200 0876 / 8595 0011 (86)10-5329 9899Tel:
000876@newhope.cnE-mail:
Fax:(86)28-8595 0022
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