Company Profile

Deeply Rooted Growth to Navigate Through the Cycle

The year 2023 presented considerable challenges. The global economy is facing an increasingly complex outlook. Persistently low pork prices, soaring social inventories, and sluggish end-consumer demand characterized the environment. The cumulative impact of these external factors placed us in an unprecedentedly difficult situation.

However, in the midst of these challenging times, we have always held onto hope. We adjusted our strategy swiftly and resolutely, with wartime culture at the core, initiating organizational reforms, refocusing on our core businesses, rigorously strengthening internal management, and standing united in this battle against the harsh winter of adversity.

Stand firm in belief, endure with passion. It is with this steadfast belief in our mission and deep passion for the Company that we have persevered and strived to continuously create value for society. Our belief and passion have supported the Company in overcoming numerous challenges and going through the downturn cycle, leading to its growth into a large-scale integrated agricultural and animal husbandry service provider. Based on this core philosophy, we have formulated the “Tree of Hope” ESG strategy, aiming at guiding New Hope Liuhe towards sustainable development and making positive contributions to society, the environment, and the economy. We believe that agriculture and animal husbandry follow their natural laws and possess inherent vitality. Our company, deeply rooted in this field, will grow steadily and resiliently, much like a tree firmly anchored in fertile soil.

Looking back at 2023, we embraced change with determination, streamlining our organization, reducing costs, and enhancing efficiency. Focusing on the agricultural and animal husbandry industry—a cornerstone of national prosperity and people’s well-being—we crafted a perpetually flourishing landscape of our operations.

Strengthening the foundation with organizational strength. We anchored our efforts in the four key spirits: victory spirit, fighting spirit, pragmatic spirit, and unity spirit. We deepened the cultivation of our talent pool, launching specialized training programs for talents in the agricultural and animal husbandry industry. Additionally, we unlocked the first phase of employee stock incentives and created the New Hope Academy platform to build an overall learning organization, continuously revitalizing organizational vitality. We established a positive and sustainable corporate culture, conducting internal control system construction with the mindset of “Objectives-Risks-Control,” thereby forming a risk control loop. We staunchly combated internal corruption, fostering a righteous organizational atmosphere, and safeguarding those who contribute significantly. We also renamed the Strategy Committee to the Strategy and Sustainable Development Committee, further strengthening sustainable development management and enhancing ESG governance.

Driving development through innovation. We prioritized leveraging the power of innovation to drive progress, striving to break new ground in the conversion of scientific achievements. In 2023, we obtained authorization for 178 patents, showcasing our commitment to innovation. Notably, we fully embraced our independently developed technology, the Xinxiwang 10K “pig chip,” overcoming challenges in breeding technology. We focused on the “three fulls and four transformations” digital transformation strategy to promote the integration of business and digital technologies. Our Hongtong digital nutrition system successfully bridges the gap between technical research and development, nutritional design, and market validation, forming a seamless data link. We remained steadfast in our efforts to support farmers and promoted sustainable development in the pig industry. Collaborating with nearly 4,000 households nationwide, we achieved an annual output of 17.68 million pigs, driving significant increases in farmers’ income exceeding RMB 3.22 billion. Actively implementing energy conservation and carbon reduction measures, we partnered with the State Power Investment Corporation Limited to advance a 3 million-kilowatt zero-carbon comprehensive smart energy project. Additionally, our long-term partnership with the Volkswagen Group in emission reduction and carbon reduction areas further promotes biological carbon sequestration, yielding triple benefits in ecology, environment, and economy.

Empowering the society through value creation. We further deepened our commitment to resource conservation, saving nearly 1.4 million tons of grain by optimizing various aspects of our operations, including livestock and poultry breeding, feed formulation, feed production, grain storage, transportation, and farming. Adhering to the “Rebirth” recyclable agriculture model, we actively promoted sustainable farming practices. Within the year, we reclaimed 17.18 million tons of water for irrigation, utilized 130,000 tons of organic fertilizers, cultivated 70,000 mu (4,667 hectares) of farmland on reclaimed land, and produced 2,467.5 tons of fresh fruits and vegetables. Furthermore, our “100,000 Green Collar New Farmer Training Program” has trained over 84,000 individuals offline, and the third session of the “Village Head Course” gathered over 100 village heads from 22 provinces for more than 20 educational seminars. In line with our commitment to public welfare, we have actively engaged in charitable endeavors by providing assistance, donating supplies, and deploying volunteers to assist those affected by disasters domestically, like the flood in Tianjin and the earthquake in the Jishishan area of Gansu Province, as well as international disasters like the earthquakes in Turkey and floods in Bangladesh, demonstrating the Company’s social responsibility and the courageous commitment of our employees.

As the winter lingers, we know that spring will not be far behind. In times of adversity, it is crucial to maintain unwavering confidence and fearlessness. The power to navigate through the cycle doesn’t come overnight; hence, we will uphold our belief in long-termism, turning challenges into transformative opportunities, and collaboratively creating a future full of new hope with all stakeholders.