新希望:2022年企业社会责任报告（英文版）

Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate
and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility ReportCorporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate
Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report
Technological Innovation Agriculture
CONTENTS
35 Exploring the Development of 59 Employees Achieving Success
Smart Urban and Rural Areas and Pursuing Excellence through
through Technological Innovation their growth
01 Message from the Chairwoman
37 Driving Development through Technology 61 Protecting Employees' Rights
02 About New Hope Liuhe and Interests
41 Upgrading Smart Farms
07 Responsibility Management 63 Building a Platform for Career 43 Creating A Digital Enterprise Development
09 Responsibility Focus 65 Enhancing Employee Care
09 Food Saving Special Action: 67 Occupational Health and
Comprehensive Protection of Food Safety
Security
12 Five-Five Project: Continual Support
for Rural Revitalization
15 Corporate 45 Green Industry Repaying SocietyGovernance Sustaining Nature through 69 in Nurturing Happiness Circular Agriculture with Hope
Striving to Uphold Long-Termism
47 Improving Environmental Management 71 Striving to Stabilize Production
17 Building a Resilient Foundation through and Guarantee the Supply
Party Leadership 49 Developing Eco-Friendly Animal Husbandry
72 Devoted to Charity
19 Strengthening Risk Management 51 Responding to Climate Change
75 Promoting Regional
20 Adherence to Business Ethics 55 Water Resource Management Development
21 Growing Together with Partners 56 Reduction of Waste Disposal
57 Ecological Environment Protection
23 Enterprise for 76 About this reportPeople's Well-being 77 Indicator Index Table
Safeguarding Life with Life
25 Strengthening Food Safety
29 Enhancing Nutritional Value
32 Improving Service Quality01 New Hope Liuhe Co. Ltd. 2022 Annual Corporate Message from the Chairwoman Social Responsibility Report 02
Message from the Chairwoman About New Hope Liuhe
Embarking Anew Journeying on the Ridges of Hope New Hope Liuhe Co. Ltd. (stock code: 000876) was founded in is the 2018 Shanghai Cooperation Organization Qingdao Summit
2022 is a year imbued with unique significance - a year both fraught As an agricultural and livestock enterprise the green 1998 and listed on the Shenzhen Stock Exchange on March 11 designated supplier of poultry meat.
with challenges and filled with hope. The successful convening development concept has been integrated into our business 1998. Based on the agriculture and animal husbandry industry the The enterprise technology center has been awarded the title of
of the 20th CPC National Congress outlined a grand blueprint for operations. Through implementing a cycle of combined farming company pays attention to the steady development the business "National Certification Enterprise Technology Center" and the
the comprehensive construction of a modern socialist country and breeding within the livestock industry we have accomplished involves the feed the breeding the meat product and the financial two testing centers have passed CNAS accreditation of national
sounding the trumpet for our new journey of progress. comprehensive utilization of 100000 tons of manure and investment the trade and so on the company business spreads all laboratories. More than 60 technological achievements have been
This year also marks the 40th anniversary of New Hope Liuhe. Looking 16 million tons of wastewater. This has contributed to soil
over the country and Vietnam Philippines Bangladesh Indonesia awarded at or above the provincial level of which 6 innovative
back on our 40-year journey New Hope Liuhe has not only reaped the enhancement and bio-carbon sequestration. Furthermore we
Cambodia Sri Lanka Singapore Egypt and nearly 20 countries. technologies have won the second prize of the State Science and
benefits of reform and opening up but has also actively participated have initiated actions like clean energy transformation potential In September 2011 the company's agricultural and animal Technology Progress Award. At present some of its companies
in and contributed to its construction. From "if you hope to get rich energy-saving exploration feed formula optimization and bio- husbandry assets reorganization was approved by China Securities have won the "ISO 9001 Quality Management System Certification"
by raising pigs New Hope will help you" to "profiting the farmers carbon sequestration for low-carbon production. Regulatory Commission. In 2018 the company achieved sales and "ISO 22000 Food Safety Management System Certification"
benefiting the consumers" from launching a "glorious cause" to Our public welfare charity activities have become regularized revenue of RMB 69.1 billion holding more than 500 subsidiaries "GAP Good Agricultural Practice Certification" "HACCP Food
participating in rural revitalization from implementing combined serialized and branded. We constantly carry out the "Hope and Wish and 62000 employees. New Hope Liuhe ranked 126
th among the Safety Management System Certification" and so on.farming and breeding to planning for dual-carbon goals from flat Plan" and "Warm Winter Action" promptly responding to unforeseen Fortune 500 Chinese companies in 2018 is co-vice chairman unit The company will take "the world agri-food industry leader" as
organizational structure to digital transformation we identify and disasters such as the Luding earthquake the typhoon Chaba and of the China Council of the Global Food Safety Initiative (GFSI). Liu the vision "profiting the farmers benefiting the consumers"
address societal needs and challenges. By continuously changing the Chongqing wildfire making contributions to disaster relief and Chang chairman of New Hope Liuhe Co. Ltd. is a member of the as the mission "customer first challenge oneself striver-
transforming and improving ourselves we better solve problems post-disaster reconstruction efforts. board of directors of the Global Food Safety Initiative. oriented" as the core values focus on giving full play to the
and create value for our users industry and society. This remains Embracing "New Technologies": We embrace the digital era with The Company has won the honorary titles of National Key radiation-driven effect of key leading enterprises in agricultural
the driving force behind New Hope Liuhe's sustained growth. open minds and propose a comprehensive digital transformation Leading Enterprise of Agricultural Industrialization National Food industrialization integrating global resources building a
Standing at a new starting point we have a clearer vision of our path strategy termed as "three fulls and four transformations" under the Safety Enterprise Ten Times Enterprises of China Animal Feed safe and healthy food industry chain and making greater
forward. Today's New Hope Liuhe is a comprehensive agricultural "integration of industry and digital management". This strategy aims Industry Ten Leading Feed Enterprises of China Main Credit contributions to helping farmers increase their incomes and
service provider. We are committed to resolving issues throughout to establish a close tie between our business and digital technology Grade AAA Demonstration Project Enterprise of China Meat Food become rich to meeting the needs of consumers for safe meat
the development of the entire industry and society extending across six major areas including research and development farming Safety Credit System Construction 2017 Forbes Global 2000 etc. products and to promoting social civilization and progress.from feed production to breeding farming meat slaughtering production supply chain sales and customer service. We steadfastly
and processing and finally connecting to consumers through our view technology as the principal driving force and have constructed a
restaurants and end users. We aim to serve a greater variety of "4+1" tech innovation system with a concentrated focus on practical
consumer needs and create value for our customers by harnessing technology innovation thereby empowering the industry.the full power of the supply chain. This report represents the shift Promoting "New Mechanisms" and Cultivating "New Youth": Our
from traditional CSR reporting to an internationally recognized diligent employees are our most precious treasure. In 2022 we
nationally encouraged ESG governance system which signifies initiated the largest scale employee stock incentive plan in the
our proactive approach to meet future challenges and drive our Company's history and set up a digital training platform "New
journey towards high-quality and sustainable growth. Hope Academy" to provide ongoing training and education Meat and Poultry Pig Farming Industry Industry
Looking back at 2022 as a people-oriented enterprise we actively opportunities for our staff. We also created the talent enhancement
responded to national policies such as rural revitalization common "3U" model to inspire the hard-working to excel motivate the high-
prosperity agricultural strength and food security. Guided by these performers and facilitate the rise of those taking responsibilities. Europe - France
national strategies we integrate them with our following "five new" This is an era filled with uncertainties. Yet the experience and Asia - China
management philosophies ready for a renewed departure: wisdom handed down from our predecessors remind us that it is Africa - Egypt Asia - South Asia Feed Industry
Implementing "New Responsibilities": We continue to implement from these uncertainties that we can find opportunities staying
Africa - Nigeria Asia - Southeast Asiafood conservation measures focusing on multiple aspects such resolute in our goals and moving forward with determination. I
as food storage transportation livestock and poultry breeding will adhere to our original aspirations consolidate our focus and
feed formulation feed production and scientific feeding. We are energy work on the front lines and continue walking alongside
dedicated to offering consumers healthier safer and superior- our domestic and foreign business partners on the ridges of
quality food products and are striving to enhance a fully traceable hope to create an even more beautiful and sustainable "New
Africa - South Africa
and controlled food safety management system from farm to Hope" for all.table. We persist in supporting programs aimed at rejuvenating
talents such as the "Five-Five Project" for rural revitalization and Chairwoman of New Hope Liuhe Co. Ltd.modern apprenticeship cumulatively conducting training for a Overseas Market Food Industry
total of 79900 people offline and 13.61 million online.03 New Hope Liuhe Co. Ltd. 2022 Annual Corporate About New Hope Liuhe Social Responsibility Report 04
Our 2022
Business Performance
Sales revenue (RMB 100 million) Feed sales (10000 tons) Pig production volume Poultry meat sales (10000 tons)
1415.08 (10000 heads)
1262.622392282428421461.39185.73180.141098.25997.81165
829.25
202020212022202020212022202020212022202020212022
Poultry chicks sales (10000 chicks) Sales Volume of Commercial Chickens Pork sales (10000 tons) Sales Volume of Processed Meat Number of employees (person)
and Ducks (10000 heads) Products and Precooked Meals
(10000 tons)
5193954657423644302240.1125.3526.8795993507653890321.68801687732829.41
20.77
202020212022202020212022202020212022202020212022202020212022
Honors and Awards
Industry Leading Category Social Responsibility Category Technology Innovation Category
Forbes Global 2000 (Ranked 1271st) Best Practice Case of ESG in Listed First Prize of Shennong China Agriculture Science Third Prize of China Food Science
Fortune China 500 (Ranked 108th) Companies and Technology Award and Technology Society Technology
China's Top 500 Private Enterprises (Ranked 22nd) Excellent Practice Case of Rural First Prize of Sichuan Provincial Science and
Innovation Award
Revitalization in Listed Companies Technology Progress Award Third Prize of China Medical Science and
No. 1 on the list of Global Top Feed Companies Southern Weekly China Corporate Social Second Prize of Shennong China Agriculture Technology Award
Global Top 50 Broiler Companies (Ranked 23rd) Responsibility List Science and Technology Award National Seed Industry Key Enterprise
No. 6 on the list of 2022 Global Top Pig Enterprises Most Socially Responsible Listed Second Prize of Shandong Provincial Science and National Waterfowl Core Breeding Center
2022 China Meat Industry Advanced Team Award Company on the Listed Companies' Public Technology Progress AwardReputation List National Waterfowl Fine Breed
Hurun China Food Industry Top 100 List (Ranked Third Prize of Shandong Provincial Science and Propagation Promotion Base
26th) 2022 China's Top 500 Companies in Technology Progress AwardCharitable Public Welfare Excellence Award in the First Digital Rural
2022 Top 10 Service Group in China's Catering First Prize of China Light Industry Federation Innovation Design Competition
Industry Science and Technology Progress Award
Annual Leading Company in the Precooked Food
Industry05 New Hope Liuhe Co. Ltd. 2022 Annual Corporate About New Hope Liuhe Social Responsibility Report 06
Corporate Governance
Corporate Governance Improvement
The Company strictly adheres to the Company Law of the balances mechanism. The Company maintains independence The Company attaches importance to board diversity taking into account various cultural backgrounds Female directors
People's Republic of China the Securities Law of the People's from controlling shareholders and actual controllers in education levels work experiences genders and ages when nominating directors. This approach represent
Republic of China the Code of Corporate Governance for aspects such as assets personnel finances institutions and enhances the scientific and effective decision-making process of the board. By the end of the reporting
Listed Companies in China the Stock Listing Rules of the business operations. Moreover the Company strictly convenes period the board consists of 8 directors including 3 female directors 3 independent directors 2 37.5% of the
Shenzhen Stock Exchange the Measures for the Administration shareholders' meetings in accordance with the Rules for with doctoral degrees 4 with master's degrees and 2 with bachelor's degrees or below with diverse board
of Information Disclosure by Listed Companies and the Shareholders' General Meetings of Listed Companies released professional backgrounds such as risk control financial management corporate management
Shenzhen Stock Exchange Guideline No. 1 on Self-regulation of by the China Securities Regulatory Commission and the agriculture and animal husbandry.As the Company's primary decision-making body the board of
Listed Companies - Standard Operations of Main Board Listed Company's Rules of Procedure for Shareholders' Meetings and directors comprises five specialized committees: the audit remuneration and assessment strategic
Companies along with other relevant laws and regulations. convenes board meetings and board of supervisors' meetings development nomination and risk control committees. Independent directors make up more than
We have established a standardized corporate governance adhering to the Rules of Procedure for the Board of Directors half of the membership in the audit remuneration and assessment nomination and risk control
framework and scientifically effective rules of procedure while and the Rules of Procedure for the Board of Supervisors. The committees and serve as conveners. The audit committee includes senior financial experts and all
consistently updating and refining our internal control system Company diligently abides by relevant voting provisions and its members are non-executive directors. Before presenting major professional matters to the board
at all levels. In 2022 11 company policies were revised and procedures to protect the legal rights and interests of the of directors for consideration they must undergo review and approval by the respective specialized
updated according to new regulations. Company and its shareholders. In order to ensure the board's committees thereby actively utilizing the expertise of independent directors. The remuneration
We consistently improve our corporate governance structure to independence and minimize risks associated with related committee is solely composed of directors and does not include any senior management personnel.enhance its effectiveness by refining the rights responsibilities party transactions the Company has established the Internal When the board reviews draft equity incentive plans and the Company Performance Management
and operational standards of shareholders' meetings the board Control System for Related Party Transactions which ensures Measures proposed by the remuneration committee related directors abstain from voting to ensure the
of directors the board of supervisors and the management. that such transactions comply with the principles of fairness committee's independence. For detailed information on the board's composition and performance
Through establishing and standardizing the governance transparency and equity. The system also provides detailed the responsibilities of the board and management team as well as the structure and operation of
structure of three meetings goverance we clarify the roles and guidelines on the identification of related parties pricing of specialized committees please refer to the New Hope Liuhe Co. Ltd. 2022 Annual Report.authorities in decision-making execution and supervision transactions and approval authority thus contributing to a
thus creating an effective division of responsibilities and more refined corporate governance structure.Investor Rights Protection
3 Corporate Governance Structure New Hope Liuhe adheres to regulatory requirements including the Rules for Shareholders' General In 2022 s hareholders' meetings were
44 Meetings of Listed Companies released by the China Securities Regulatory Commission the Company's 117held passing resolutions; Shareholders' Staff Meeting Meeting Articles of Association and Investor Relations Management Regulations ensuring transparent and announcements
15 84 orderly shareholders' meetings and guaranteeing investors' rights to be informed and involved in crucial disclosed b oard meetings were held passing decisions. The Company is dedicated to fostering strong investor relations and treating each investor
resolutions; Independent Directors with openness fairness and impartiality. By deepening investors' understanding of the Company's
11 operations business growth strategies and investment value it effectively safeguards the interests of all b oard of supervisors' meetings were held passing 1600investors especially the legitimate rights and interests of minority shareholders. The Company treats all
35 investor calls handled resolutions； Board of Board of shareholders equally minority shareholders able to attend and vote at shareholders' meetings in person
6 2 Directors Supervisors or online. For major matters that may affect the interests of minority investors the Company counts their Additionally a udit committee meetings votes separately and discloses the results. Shareholders' meetings also include a Q&A session for minority
2 Responding to nearlyremuneration and assessment committee meetings investors to address their concerns and suggestions ensuring their rights are protected.
4 The Company continually improves its information disclosure management with 117 announcements investors risk control committee meetings and nomination 200 and 273 documents disclosed throughout the year including 8 investor communication records and 12 on the Hudongyi
committee meetings were held throughout the year.live pig sales briefings. We explore multiple channels and approaches to maintain investor engagement
utilizing various platforms like phone calls emails and the Hudongyi platform of the Shenzhen platform addressing
Management Team
Stock Exchange to address questions and concerns. We also prioritize communication with overseas
questions
investors and in 2022 we released English versions of our annual report semi-annual report and 539
social responsibility report assist foreign investors in timely understanding the Compangy's strategic
development and business operations.Risk Control Committee
Remuneration and
Assessment Committee
Nomination Committee
Audit Committee
Strategy Committee07 New Hope Liuhe Co. Ltd. 2022 Annual Corporate Responsibility Management Social Responsibility Report 08
Responsibility Management Stakeholder Communication
The Company consistently maintains effective communication with our stakeholders adopting an active and open approach listens
ESG Issue Management attentively to the expectations and demands of our stakeholders and proactively responds to them.In order to gain a deeper and more accurate understanding of the expectations and demands of our stakeholders and to enhance Stakeholders Expectations and Demands Our Response
the relevance and substance of our reports we conduct a careful evaluation of environmental social and governance (hereafter
referred to as "ESG") issues. This evaluation takes into account aspects such as peer attention regulatory requirements and the Enhancing corporate governance
importance of these issues to our business operations. We then classify these issues into high medium and general categories of Operating in compliance with laws and Implementing policies and paying
importance subsequently forming an ESG Materiality Matrix which is then reported to our Board of Directors and management regulations taxes in accordance with the law
for further discussion. Through this process we aim to continually improve our ESG management ensuring that our development Government & regulatory Paying taxes in accordance with the law Accepting regulatory audits
strategy aligns with substantive issues and is balanced with the demands of our stakeholders. authorities Supporting local development
Economic stimulus and job growth
8 Stable operations
2 Consistent and stable returns Protecting shareholders' rights
9 Transparent and open information
5 Shareholders & investors3 Improving operational transparency
10
4 Providing high-quality and safe food
7
Product quality and safety Ensuring product supply
12 6 Optimized customer service Digital intelligence transformation
11 Responding to customer requests
Consumers & customers Reliable privacy protection
Information security and privacy
17 16 protection
19181315
Adherence to business ethics Sustainable supply chain
14
20 Honest cooperation Open cooperation
21 Partners Win-win development Communication and interaction
22
Stable salary incentives
Protection of basic rights
Providing learning and growth
Training and development opportunities
Low Importance to development of the company High Health and safety
Employees Creating a good work environment
Employee care
Ensuring health and safety
1 Ensuring Food Safety 8 Protection of Basic Employee Rights 17 Public Welfare and Charity
2 Addressing Climate Change 9 Occupational Health and Safety 18 Responsible Marketing Scientific and efficient use of resources
Developing ecological farming
3 Reducing Waste Emissions 10 Ensuring Animal Welfare 19 Information Security and Privacy Reducing impact on the environment
Advancing green operations
4 Sustainable Supply Chain 11 Water Resource Management Protection Driving the industry to improve green Environment Creating a green supply chain
development capabilities
5 Digital Transformation 12 Biodiversity Conservation 20 Ensuring Operational Safety
6 Participating in Rural Revitalization 13 Business Ethics and Anti-corruption 21 Intellectual Property Protection Charity donations and volunteer activities
Promoting regional development
7 Employee Training and Development 14 Quality Customer Service 22 Open Cooperation Promoting the development of operating Public welfare and charity
areaactivities
15 Community Co-building Communities Community co-building
Participating in rural revitalization
16 Strengthening Party-building Work
High Importance to stakeholders09 New Hope Liuhe Co. Ltd. 2022 Annual Corporate 10 New Hope Liuhe Co. Ltd. 2022 Annual Corporate Responsibility Focus Social Responsibility Report Social Responsibility Report 11
Food Saving Special Action: Comprehensive
Protection of Food Security
In the report from the 20th CPC National Congress the Food Saving in Breeding Food Saving at the Source Optimizing Feed Formulas Intelligent Food Saving: Advancing Digital Agriculture
national strategic requirement of "solidifying the foundation
of food security in all aspects and firmly safeguarding the Development and The Company adopts measures for formula food saving which are based on "efficiency enhancement resource diversification and structural In the livestock production process we utilize scientifically effective management methods giving importance to the digital and
red line of 1.8 billion mu of cultivated land" was proposed. application of new food- Food Saving in Feed
Formulation adjustment". These measures enhance the usage efficiency of existing feed increase the variety of usable raw materials and optimize and intelligent upgrading of livestock breeding pig breeding and farm management. By fostering and leveraging digital technologies
New Hope Liuhe as one of the largest grain consumers saving breeds adjust feed structure achieving a comprehensive way to food saving in our feed formulation process. we promote feed and grain conservation.in China is actively participating in efforts to secure food Developing digital breeding Replacing original grains with
safety. We are advancing and implementing strategies for software for efficient valuable ingredients and by- Through our self-developed "Xiu Jie system" we have established genome breeding value algorithms relationship
reducing food waste and loss and have launched the 'New identification of pigs with products Efficiency Enhancement to Reduce Raw
Hope Food Saving Special Action'. By employing measures optimal feed conversion Material Loss
Resource Diversification to Increase Raw Material Variety algorithms and breed purity algorithms. This enhances pig breed optimization raises breeding efficiency diminishes pig
rates Promoting the application intra-group variances enables precise feeding of pig herds refines feed-meat ratios and decreases feed consumption.such as reducing grain consumption improving breeding of multiple fermentation raw We implement precision feeding strictly feeding We focus on research into raw material pretreatment techniques
techniques optimizing feed formulas and employing digital Improving the PSY of material technologies Pig Breeding Project
sows by employing pigs according to the precise nutritional needs to increase the choice of raw materials in our feed formulas.farming practices we encourage and call on domestic
critical techniques such of their various growth stages. We also manage livestock businesses and feed companies to join us in this We have built our own raw material database and developed the
as increasing the ratios of feed ordering mixing usage and data entry with
special food saving initiative. "Hongtong System" amassing a nutritional value database of superior boar usage Strengthening Intelligent Farming Building a Digital Feed FactoryFood Saving in Feed precision reducing feed waste. over 200 non-grain raw materials. This promotes diversification
Enhancing the feed Production We are constantly committed to achieving We have completed a pilot project for
Implementing Comprehensive of raw materials and enables precision feeding.conversion efficiency of unmanned or minimally manned pig farm a digital feed factory creating a digital
Food Saving Across the Supply meat ducks through new Technical modification Moreover we have enhanced the recycling and utilization of local management leveraging intelligent and logistics coordination platform within
duck breeding selection of the grinder to adapt to oil cakes which has increased the efficiency of utilizing various
Chain and Strengthening digital technologies to facilitate modern the factory. This enables automation and local grain characteristics Structural Adjustment for Feed Formulation protein resources and reduced dependence on soybean meal.reducing losses Optimization farming practices. unmanned processes like vehicle entry Closed-loop Management Food Saving in Grain Storage and weighing avoiding waste and loss
Controlling moisture loss
We advocate for low-protein diets to reduce the In 2022 we optimized feed formulas and reduced soybean of raw materials and feed due to human The Company extends its special food-saving specific actions Through the Minnong meal usage by operations.to all aspects of the supply chain enhancing closed-loop Cloud Warehouse we apply usage of high-priced imported protein raw materials
management across the entire chain. We focus on details at intelligent supervision to like soybean meal. By improving formulas we ensure 300000tons. Rallying Industrial Strength for Collaborative Food Saving
key points coordinating efforts to achieve high-quality food- grain storage collecting a balanced ratio of amino acids.data on parameters such as Food Saving in Farming
saving objectives. grain temperature humidity When everybody adds fuel the flames rise high New Hope Liuhe strengthens industrial interconnections encouraging and calling
gas concentration pests Renovating self-feeding upon upstream and downstream enterprises research institutions and social groups to participate in the special food saving action.and moisture content. fertilizer troughs reducing
feed waste and decreasing This collaborative effort harnesses the wisdom and power of all stakeholders collectively contributing to food security.Objectives of New Hope Liuhe's Food Special Action This approach allows us to
prevent grain damage and feed consumption per pig
Improve the overall efficiency of feed usage by loss due to pest infestation by 5% Establishing the "Innovation Consortium" Participating in Standard
1 1 heat generation and mold. Implementing precise Setting% every year which equates to saving % of nutrition and accurate We convened the "New Hope Feed Saving Technology Innovation Joint Action The Company actively participates in
700000 Food Saving in feeding measures and the 6th HOPE Science and Technology Consortium" and took the lead in the key national project "Advanced grain every year or around Transportation Timely identification and establishing the "Feed Saving Technological Innovation Consortium" (simply Technologies and New Products Creation mu of cultivated land.
Transitioning from bulk removal of worthless pigs "Innovation Coalition") uniting multiple research institutions 8-10 academicians in Protein Feed Bioengineering" under
dispatch to containerized and renowned experts 11 upstream and downstream enterprises throughout the "14th Five-Year Plan". We also assist
Persist for five consecutive years resulting in a total Improving production dispatch shifting from management techniques the industrial chain a seasoned technological investment fund an international in crafting national and industry-wide savings of about predominantly highway increasing survival rates think tank and three national-level associations among other stakeholders. The standards promoting standardized and
1.5 transportation to a combination of land Innovation Consortium with feed saving as its focal point hones in on three critical regulated breeding management.million tons of grain corresponding to a Installing powder screens
railway and maritime reducing powder waste segments: breeding feed and farming. It strives for technological and managerial
saving of over 3 million mu of farmland. container transport thereby innovation embarking on 30 key technological development and upgrade reducing losses during the initiatives and setting up 10 key technological challenges to collectively promote
logistics process grain conservation.Responsibility Focus12 New Hope Liuhe Co. Ltd. 2022 Annual Corporate 13 New Hope Liuhe Co. Ltd. 2022 Annual Corporate Responsibility Focus Social Responsibility Report Social Responsibility Report 14
"5+N" Special Training System Supporting and Financing Small and Micro Enterprises for Agricultural Development
Five-Five Project: Continual Support for Rural Revitalization
One Standard Process 1 4 Four Supporting Institutions New Hope Liuhe capitalizes on its strengths in agricultural immersion rural Data Tier: The agricultural industry chain financial services platform serves
servicing and farmer proximity deploying entities such as companies of its
as the foundation for the data layer tackling the challenge of information
We've distilled our training practices into a standardized operation The "Green Collar New Farmer Training" project team agri-food industry chain and industry research institute to offer supply chain
In active response to the significant rural revitalization Case Study collection from farmers and other industry chain clients.manuals appropriate for the organization execution project acceptance financial services and agriculture-related technical services. This aids in the strategy New Hope Liuhe has proposed the "Five-Five Launch the Hope Farm Model New Hope Green Collar Academyand procedural management of the new farmer training projects. growth of smallholder farmers and micro small and medium enterprises and Risk Control Tier: Digitally-driven precise agricultural risk management forms Initiative"—undertaking five critical tasks in five years to Sichuan Yonghao Public Welfare Charity Foundation the backbone of our risk control layer reinforcing the overall risk management
facilitate rural revitalization. These include the Rural Green supports farmers in developing modern agriculture and increasing income. While establishing our own pig farms New Hope Liuhe collaborated with local
Collar Training Program the Rural Model Demonstration Two Sets of Professional Textbooks 2 Rural Revitalization Industry Integrated Development Alliance The company has innovatively established a multifaceted financial guarantee process.farmers to promote the Hope Farm model based on the principle of "Six Unifications
Project the Small and Micro Support Project in rural areas operation model incorporating "government + enterprise + banks + guarantee Product Tier: The product layer consists of a range of business loan products by the Company Three Non-Concerns for the Farmer". This model fosters a smart
the Rural Employment Resolution Program and the Rural Offline we offer illustratively rich and easily comprehensible textbooks companies + insurance companies + farmers". With this model the funds can development approach linking enterprises and family farms allowing modern 5 Five Sources of Teaching Staff for agricultural supply chain clients ensuring precise and efficient personal
Industrial Revitalization Project. including already printed editions on pig and poultry rearing. be allocated to the respective poultry and feed factories and banks formulate breeding technology to benefit more farmers. The Company ensures a unified supply chain financial services for key rural revitalization scenarios.Full-time coaches from New Hope Liuhe Industry Academy products aligning with the farming cycle ensuring rapid capital turnover and supply chain for farmers engaged in livestock production encompassing the Online we have developed over 140 video courses that allow for bite- Product Tier: The product layer consists of a range of business loan products
strong liquidity.provision of standardized weaned piglets consistent feed throughout the entire sized learning through short easy-to-understand and highly practical Research experts from New Hope Liuhe's five industry research for agricultural supply chain clients ensuring precise and efficient personal
process standardized medication and vaccines uniform management and videos. Additionally we have provided 92 public-benefit live- institutes supply chain financial services for key rural revitalization scenarios.Our "Digital Smart Breeding Solution" case technical support adherence to standardized farm construction standards and the
participated in the streamed courses that cover a wide range of agricultural topics.Financial Guarantee
Scenario Tier: The scenario layer is underpinned by both online and offline
establishment of a unified recovery system. Farmers only provide standard fattening New Hope Liuhe's senior management team and agricultural Building a Service Platform
"First Digital Rural Innovation professional managers transactional scenarios provided by industry partners and collaborators pig houses and pig farming labor not bearing the risk of market volatility and capital Three Types of Quality Courses To solve the financing difficulties of agricultural industry chain clients New
Design Competition" and won an issues. As of the end of 2022 the Company engages in a cooperative arrangement 3 allowing for scalable customer acquisition and targeted services.Experts and scholars from Chinese Academy of Agricultural Sciences
with 2211 households of free-range farmers for the feeding and retention of Hope Liuhe's subsidiary Puhui Agriculture and Animal Husbandry Financing Excellence Award. Technical Skill Courses designed according to different industrial China Central Agricultural Broadcasting and Television School and
fattening pigs a year-on-year increase of 19%. Among these 90% of farmers had a Guarantee Co. Ltd. has set up a 2.0 agricultural industry chain financial Supply Chain Financing
farming techniques. other collaborating academic institutions
scale of over 1000 pigs with an average farm size increased by 40% compared to service platform. It has developed an inclusive "agri-industry chain finance" New Hope Liuhe's industrial financing platform powered by its own capabilities in risk
Modern Agriculture for the previous year. Technical Management Courses targeted at key farm managers'
Quality instructors from superior domestic and international model that consists of "data tier + risk control tier + product tier + scenario management data accumulation and platform construction offers digital services for
technical and management courses. corporations tier". By the end of 2022 Puhui Agriculture and Animal Husbandry Financing
Industrial Revitalization upstream and downstream enterprises and customers in the supply chain to obtain Cultivating in Depth: Revitalizing Talents Guarantee has carried out business in 31 subsidiary regional companies Industrial Business Courses necessary for young farm owners and bank financing employing direct bank-enterprise financing service models. across the country launching nearly thirty characteristic industry guarantee
Prosperous industry is crucial to attract resources and retain New Hope Liuhe has launched the "100000 Green Collar New Farmer Training Plan" leaders covering business management and industry knowledge. N A Multitude of Distinctive Demonstration Training Bases loan financial service solutions such as "Aquatic Feed Loan" "Contract Pig Currently the platform has introduced a variety of supply chain financing
talent and only economic prosperity can enrich farmers as part of its rural revitalization initiative. This plan aims to train 100000 new-type Deposit Loan" and "Beef Cattle Breeding Loan". It has cumulatively served products such as Haoyangdai Haoqinbao and Yongjindai. These offerings cater
and spur rural development. New Hope Liuhe prioritizes professional farmers within five years. By leveraging its core competencies in areas 176100 agricultural operators with RMB 58.5 billion in financing successfully to five key financing scenarios—upstream feed financing downstream feed
industrial development as a catalyst for agriculture sharing such as technological innovation financial assistance technical training and market In partnership with institutions such as the Chinese Academy of Agricultural Sciences Sichuan Provincial Tourism Development Committee Jiangsu Vocational implemented effectively benefiting and assisting farmers. financing pig breeding financing poultry breeding financing and food terminal
insights for pig industry progression and thereby facilitating connection the Company strives to foster a new generation of professionals who
College of Agriculture and Forestry and Shandong Vocational Animal Science and Veterinary College we have successfully established nine specialized financing—providing solutions for a range of clients including raw material
industrial upgrade. "love agriculture understand technology and excel at management" contributing to
the revitalization of rural talent. The project has established a "5+N" Special Training training bases. These bases concentrate on areas of training including young farmer development rural e-commerce rural tourism agricultural innovation
Strengthening Cooperation between Upstream suppliers feed customers breeders food terminal distributors and storefronts.and Downstream Clients
System encompassing one standard process two sets of professional textbooks three livestock farming and crop cultivation. By collaborating with local governments higher education institutions research entities and other societal forces we've By utilizing client transaction records and performance data within New Hope
accomplished synergy and resource-sharing across these bases. The Company actively expands cooperation externally to extend its reach to types of quality courses four supporting institutions five sources of teaching staff and Liuhe the industrial financing platform forges a connection between banks and
Advocating for Industrialized Pig Farming upstream and downstream industrial clients. We achieve scenario-based mass a multitude of distinctive demonstration training bases. By the end of 2022 the offline the Company's industry chain clients facilitating banks in client credit granting.training sessions of this project had reached 23 provinces 128 cities and 332 counties/ customer acquisition by leveraging data from "within the industrial chain + It offers digital customized one-stop services for client financing empowering
With a philosophy of high investment high efficiency districts hosting a total of 2032 sessions and training 79900 individuals. Online training Industrial Training Modern Apprenticeship System partners". In collaboration with leading businesses across key agricultural banks to select high-quality clients and promoting efficient financing channels
high returns and low costs the Company introduce all-in- has reached 13.61 million participants. sectors including agriculture forestry animal husbandry fisheries agriculture- for outstanding partners within New Hope Liuhe's industrial ecosystem. This
all-out standardized production and balanced nutrition related wholesale and food processing the Company unifies its internal facilitates a triple-win for New Hope Liuhe capital providers and industry clients
Furthermore catering to the needs of farmers and different stages of agricultural Focusing on both technological and Since 2018 we've partnered with Shandong Vocational
throughout the year in the design of industrial pig farming resources to serve agricultural supply chain clients delivering tailored financial further strengthening the long-term strategic collaboration between New Hope development we have created specialized courses through various online and offline managerial aspects we have designed Animal Science and Veterinary College to establish the
processes. This guides regional progression in pig farming solutions based on specific agricultural supply chain scenarios. Liuhe and its supply chain partners and enhancing the overall competitiveness teaching settings. With farmers' demands at the core we aim to build high-quality a systematic training curriculum. We New Hope Liuhe Agricultural and Pastoral College. We've
industry upgrades. of the industry ecosystem. In 2022 the industrial financing platform served over training programs. organize industry specialists to offer embarked on joint enrollment and talent cultivation Delivering Education to the Countryside -
Rural Public Welfare Classes Farmer Mobile Application Skills Trainingasses 7400 clients helping them secure financing of RMB 5.3 billion.on-site guidance at farmers' livestock endeavors with the institution following the model of the
Upgrading Digital Technology "Village Head Course" for Rural Revitalization farms utilizing our industrial edge modern apprenticeship system. By integrating theory with
to provide farmers with systematic practice we train talents guiding apprentices to learn In collaboration with the China Charity Federation The Farmer Mobile Application Skills Training Project is Bank-Enterprise Direct Linkage Model
We actively promote the integration of digital technologies Established for village party secretaries and village heads this program encompasses breeding technology training and on- theoretical knowledge at school and practical skills at New we have launched rural public welfare classes. These organized by the Department of Market and Informatization Cooperation Mode: The Bank-Enterprise Direct Linkage Model operates as a pure credit
such as cloud computing IoT big data and artificial interpretation of "rural revitalization" policies and regulations sharing of industry site advisory services. Hope Liuhe's large-scale pig farms.As of the end of 2022 a classes provide lectures and specialized tutoring for of the Ministry of Agricultural and Rural Affairs. The project business in which our industrial financing platform does not assume any guaranteed
intelligence with industries. By fully implementing air revitalization practices and on-site research and analysis of suburban village cases in total of 430 people have been trained in this program. grassroots officials farmers herdsmen and scenic spot aims to enhance agricultural production efficiency by repayment responsibilities. Service scenarios include upstream and downstream feed
filtration systems smart environmental control systems Beijing. Under the guidance of professional mentors "village lead students" analyze and homestay operators in four provinces including the training farmers to utilize mobile tools. New Hope Liuhe financing pig breeding deposit loans and others.automatic feeding systems automatic drinking systems and study the governance issues of their respective villages and explore new paths The Company has successively partnered with four universities to conduct school-enterprise Xinjiang Uyghur Autonomous Region and Henan. In 2022 being the sole listed agro-pastoral enterprise appointed by Service scenario:feed upstream feed downstream Pig industry deposit loan etc.and automatic manure removal systems we boost industry for rural development. collaborations through the modern apprenticeship system and targeted training delivering or we developed 16 courses including "Prevention and the Ministry of Agriculture and Rural Affairs has been invited Collaborative Banks: China Construction Bank Bank of Communications Postal Savings Bank of
quality improvement and efficiency enhancement. 174 reserving 886 "green collar" talents for the agricultural and pastoral industries. The New Hope Liuhe Control Measures for Common Infectious Diseases in Beef for the past six consecutive years since 2016 to organize China Agricultural Bank of China China Resource Bank and MyBank among others.As of 2022 a total of people have been trained in this program. "green collar" talent training project has been selected for the first batch of vocational education Cattle" along with other courses on breeding technology dedicated corporate events reaching a total of 12000
disease prevention and control and pen construction. participants in-person and over 300000 participants online. In 2022 the Bank-Enterprise Direct Linkage Model served more than
clients
school-enterprise in-depth cooperation projects. 1400
with loan disbursements reaching RMB 3 billion.Responsibility Focus15 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liiuhe Co.. Ltd.. 2022 Annuall Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Sociiall Responsiibiilliity Report 16
Technological Innovation Agriculture
Corporate
Governance
Striving to Uphold
Long-Termism
New Hope Liuhe consistently adheres to the guiding principles of party
construction continuously fortifying the groundwork for our corporate
development. We strengthen stringent risk management maintain adherence
to regulatory compliance and uphold integrity in our operations firmly
establishing a boundary against corruption. By advancing clean governance
and collaborating with business partners for mutual growth we continually
enhance our ability to manage our operations prudently contributing to the
vibrant and enduring prosperity of the Company.Contributing to the United Nations
Sustainable Development Goals17 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope 新希望六和股份有限公司 202S2o 年ci度al 企Re业sp社on会si责bi任lity报 R告eport 18
Technological Innovation Agriculture 18
Building a Resilient Foundation
through Party Leadership
The year 2022 not only marked the successful convening of the 20th CPC National Congress but also celebrated the 40th founding
anniversary of New Hope Liuhe marking a period of significant intensification in our party construction efforts. The Company
thoroughly embraced the spirit of the 20th CPC 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-quality
corporate development.Strengthening Party Party Construction Leading Featured Party Construction Disseminating the Spirit of the
Organization Construction Corporate Culture Activities 20th CPC National Congress
The Company has focused intensively on party In 2022 the Company put forward the concept of The Company has actively initiated a series of party New Hope Liuhe issued a Notice on Diligently
organization development diligently implementing "party construction shapes culture culture fuels activities themed "Promoting Efficiency and Cost Studying and Understanding the Spirit of the 20th
the party's directives policies and various work unity" institutionally ensuring the integration of Reduction for Business Growth with Party Members CPC National Congress organizing 86 grassroots
tasks. We promoted the "dual-entr y cross - party construction and cultural development which as Pioneering Role Models" in celebration of the 101st party units and more than 5000 party members
positioning" model for party cadres within New Hope provided a continuous flow of spiritual energy for the anniversary of the founding of the Communist Party to participate in over 100 specialized theoretical
Liuhe solidifying their roles. We have re-elected Company's growth and development. We established of China. An initiative titled "Unify Minds Win through study sessions. This endeavor has showcased the
members of the New Hope Liuhe Party Committee a system of rewards and penalties issued the Basic Actions" was launched to encourage party members to leadership role of party members and actively
as well as the Executive Deputy Secretary of the Party Principles of Rewards and Penalties of New Hope take the lead and contribute their ideas for enhancing disseminated the spirit of the 20th CPC National
Committee and have concluded organizational Liuhe and held the "Strive with Dedication Shine efficiency and reducing costs. Additionally we hosted a Congress.adjustments and leadership elections for five directly with Hope" culture-driven special event. During this joint party-building event themed "Party Construction
affiliated party branches including the Beijing Party event we honored 108 outstanding teams and 81 Facilitating Development Bank-Business Collaboration
Branch Chengdu First Party Branch Chengdu Second exceptional individuals fostering a culture of resolute Upholding Original Intentions." This event included
Party Branch Chengdu Third Party Branch and the determination and relentless perseverance. exchanges with Xinjin Intelligent Pig Farm and a
Feed Party Branch. These initiatives have enhanced collaborative party-building effort with the Bank of
our organizational coherence and optimized our China Sichuan Branch together seeking out best
structural arrangements. governance practices for high-quality development.New Hope Liuhe's Chengdu Third Party "Strive with Dedication Shine with Hope" New Hope Liuhe and the Bank of China A professor from the Sichuan Provincial
Branch held its election congress culture-driven special event Sichuan Branch are collaboratively engaging Party School is expounding on the spirit of
in party-building activities the 20th CPC National Congress19 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 20
Technological Innovation Agriculture
Strengthening Risk Management Adherence to Business Ethics
New Hope Liuhe has formulated a set of governing guidelines strictly Employee Anti-Corruption The Company has established a robust compliance and business ethics management system in accordance with
following the Company Law of the People's Republic of China Third defense line: The Audit Center and the Supervision Center Training Coverage laws and regulations such as the Company Law of the People's Republic of China Anti-Unfair Competition Law of the
Securities Law of the People's Republic of China Basic Norms for the within the Audit and Supervision Department are the third line People's Republic of China Anti-Monopoly Law of the People's Republic of China and industry norms. This system
Internal Control of Enterprises and Application Guidelines for the of defense responsible for auditing internal accountability 7 0% incorporates anti-fraud anti-money laundering and anti-bribery measures ensuring these principles are understood
Internal Control of Enterprises along with other laws and regulations. and in cases of criminal offenses referring the matter to judicial and followed by all employees and partners. Through a variety of measures we strive to elevate the standard of our
These guidelines include the New Hope Liuhe Co. Ltd. Internal Control authorities. Number of Employee corporate compliance operations. We steadfastly adhere to the principles of "Dare not to corrupt can't corrupt don't
Management System New Hope Liuhe Co. Ltd. Six Red Lines New Attendances in Anti- want to corrupt" and have put in place several regulatory documents such as the Employee Sunshine Commitment
Hope Liuhe Co. Ltd. Application Guidelines for Internal Control The Board of directors assumes the ultimate responsibility for Corruption Training Management Behavior Guidelines New Hope Liuhe Employee Conflict of Interest Declaration Management
and New Hope Liuhe Co. Ltd. Guiding Opinions on Legal Dispute risk management and is responsible for decision-making and Measures and the New Hope Liuhe Six Red Lines of Non-Permissible Actions. We continually refine our integrity
Management. These guidelines tailored to the unique characteristics of supervision of significant matters related to the Company's 6 8000 and compliance system upholding stringent integrity standards in our hiring practices. We also improve our
the industry establish robust targeted risk management protocols for comprehensive risk management. attendances supervisory systems and promote the continuous implementation of an ever-evolving integrity and compliance
areas such as environmental protection safety in production product system. With such an approach a culture of integrity is fostered an orderly management environment is
quality and digital technology. The Company actively pursues a work maintained and solid assurances of high-quality development are provided for the Company. In 2022 the
Identifying Significant Risks Total Duration of
model that prioritizes risk management and emphasizes compliance Company successfully investigated and resolved 36 corruption cases with an effective reporting processing Anti-Corruption Training
management supervision striving to create a cohesive efficient The Company has strengthened its risk identification prevention and rate of 100%.system of internal control risk control and compliance management. management capabilities. We continue to enhance our capacity to 3 4000 hours Strengthening Audit Supervisionrespond to risks such as environmental protection safety production
Risk Management Objectives and human resource risks developing scientifically sound risk response 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 and
The Company is committed to enhancing its overall risk control strategies and effectively managing and mitigating potential risks. Note: * The data does not employees and other routine production and operation matters with a full audit of all businesses every three
framework in alignment with regulatory requirements and internal include frontline operators
Specialized Training Programs years. In 2022 the Company conducted 36 audits related to business ethics and anti-corruption achieving a 100%
imperatives with a focus on bottom-line thinking and a heightened and overseas foreign staff. rectification completion rate and holding 512 individuals accountable*.awareness of risk thresholds. To ensure the effectiveness of its The Company has launched specialized training programs for employees
risk management efforts it seeks to improve the standardization across different departments to strengthen their expertise and awareness Providing Clear Channels for Reportin
systematization precision and digitalization of its risk management in risk management. In 2022 we organized risk management training The Company has established comprehensive management measures such as the Accountability Management
processes and expand the depth of its risk management measures. specifically targeting key risk sources such as food safety safe production System of New Hope Liuhe Co. Ltd. and the Reporting Investigation Management Method of New Hope Liuhe
and environmental protection aiming to constantly enhance employees' Co. Ltd. We have set up channels for letters visits phone calls online submissions and offline submissions to
Risk Management System risk management awareness and capabilities. accept supervision and reports from internal and external stakeholders about the Company and its employees.New Hope Liuhe has established a comprehensive risk management with a total of Upon receiving a report we promptly follow up and complete the investigation within 5-10 business days. For
system accurately identifying prudently assessing and dynamically 3411risk management
supervising various sources of risk including financial market training programs have been 1002000 cases where preliminary conclusions cannot be drawn the investigation is suspended or terminated. If disciplinary violations are found accountability measures are taken according to internal management procedures. If criminal
operational and legal risks. We have improved our risk management held participants offenses are suspected the case is handed over to the judicial authorities for processing. Meanwhile the Company
organizational structure clarified responsibilities and developed a places high importance on the protection of the rights and interests of whistleblowers. Confidentiality is required
top-down risk management framework with a four-tier organizational Intelligent Risk Management Measures throughout all stages of the complaint handling process and strict protection is provided for the personal
structure establishing a triple-barrier risk defense system for information of whistleblowers maintaining their rights.proactive reactive and retroactive management. Establishing a full-chain collaborative risk
management framework for the pig industry Enhancing Training and Dissemination
Tailored to the specific characteristics of the business we have established The Company has initiated the "Sunshine Action" which involves a wide range of integrity promotional
First defense line: Operating units including business units/
an intelligent backend system that provides consultation and advice on activities. These include requiring new employees to sign a Sunshine Commitment posting anti-fraud
vertical teams strategic regions/integrated units/settlements
value chain design business capabilities and strategic operations. We posters in both domestic and overseas subsidiaries and issuing reminders about maintaining integrity
and subsidiaries form the first risk management defense
have also set up capability and business platforms to promote the during holidays. We have held integrity-specific training sessions inviting external experts for lectures and
line as operational management entities charged with the
rectification of audit issues and facilitate anti-fraud investigations. conducting several anti-corruption training sessions within the Company to enhance employees' awareness
establishment and execution of internal control measures. of integrity and guide them to follow the codes of professional ethics and employee behavior. We are fully
Creating industry risk maps committed to the implementation of our integrity and compliance system.Second defense line: business units/vertical teams/internal
control and risk control lines all functional departments at the We have created risk maps for each industry by identifying potential risk
Follow Sunshine Developing a Transparent Supply Chain
company headquarters the middle offices of the Pig Raising factors enabling a systematic approach to risk management. Sensitive
New Hope Liuhe One of New Hope Liuhe's main concerns is mitigating business ethics risks in the procurement process. The Company
People watch the
Strategic Command and the Internal Control Center of the Audit positions are evaluated based on job functions role design and personnel adheres to transparent procurement upholding the principles of openness fairness impartiality and honest credit. Comic of Sunshine
and Supervision Department form the second defense line in profiles. To tackle significant risk factors the Company enhances internal We identify key risk issues in our interactions with suppliers and sign a "Sunshine Cooperation Agreement" with each
the Company's risk management responsible for the design and control systems and implements training and awareness initiatives for supplier ensuring business relationships are founded on honesty and trust. During the negotiations with suppliers we
supervision of internal control implementation. proactive prevention establishing an early warning mechanism that consistently highlight our business ethics policy identify potential integrity risks and work together to establish an
seamlessly merges risk management with integrity and compliance. efficient and clean supply chain. In 2022 100% of our suppliers signed the Sunshine Cooperation Agreement.21 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 22
Technological Innovation Agriculture
Growing Together
with Partners Total suppliers Annually reviewed suppliers9415 3854
Improving Supply Chain
Mainland China suppliers Suppliers terminated due
Management 5303 to environmental and social issues
New Hope Liuhe strictly adheres to national laws and regulations
such as the Bidding Law of the People's Republic of China and 0
the Regulation on the Implementation of the Bidding Law of the Suppliers from Hong Kong Macau and Taiwan
People's Republic of China. The Company has established norms Suppliers passing quality
such as the Management Methods for Raw Material Suppliers and 1 assessments
Supply Channels and the Management Methods for Raw Material
%
Suppliers to standardize the access comprehensive evaluation 100 Overseas suppliers
and exit management process for suppliers. We have improved
long-term communication mechanisms with suppliers and built a 4111
high-quality supply chain management system ensuring mutual
long-term growth.Full Lifecycle Management
Procurement and Admission
Supporting Supplier Growth
The Company establishes admission criteria for suppliers Preventing Supply Chain Risks
standardizes the supplier admission process and strictly verifies Securing raw material supply security and mitigating supply Establishing Green Channels Enhancing supplier capabilities is an effective way to promote
suppliers' qualifications. On-site evaluations of suppliers are chain risks are crucial tasks for the livestock industry. New the progress and development of the industry chain. New Hope
conducted to focus on key aspects such as quality management Hope Liuhe has developed a comprehensive risk analysis In cases of resource limitations and macro-environmental Liuhe together with its suppliers strives for mutual growth
supply capabilities and the production environment. For feed model and assessment mechanism enabling thorough influences the Company collaborates with suppliers to open and jointly elevates industry safety and quality standards. The
additive suppliers a cross-departmental inspection team is formed evaluation of risk identification potential risk-related losses green channels ensuring a smooth supply of goods. Company actively engages in collaboration and communication
to evaluate their technical processes and quality control measures. and specific risk mitigation measures across different with suppliers by organizing forums and meetings to gain
supplier types. This strategy fosters a resilient supply chain insights into their needs offer assistance and support and
Comprehensive Evaluation Utilizing Financial Tools
guaranteeing the quality and safety of raw material supplies encourage quality management exchanges. This creates a
while effectively preventing potential risks in the supply The Company employs flexible use of financial tools The Company conducts quarterly and semi-annual evaluations of communication platform for suppliers to better understand the
raw material suppliers. An annual review panel from the technical chain. In 2022 the Company's raw material supply remained
leveraging futures hedging and other methods to manage Company's quality management requirements. The Company's
stable with no production impacts due to shortages. price fluctuation risks.quality control auditing and financial departments examines subsidiaries have established strong partnerships with various
suppliers based on factors including regulatory compliance suppliers conducting regular research and learning activities
supply punctuality quality rates price advantages and contract Strengthening Supplier Collaboration Enhancing Transportation and Supply Efficiency to enhance mutual understanding and trust. In 2022 the
performance. Suppliers are classified into A B C and D categories The Company has forged strategic relationships with Company initiated strategic cooperation discussions and By utilizing suppliers' offsite warehouses or having suppliers
with differentiated management mechanisms applied accordingly. 99 leading enterprises in the industr y strategically signed agreements for 2023 annual cooperation objectives with transfer goods to company warehouses in advance the
incorporating multiple supplier channels to secure a stable leading industry enterprises such as COFCO Group Yihai Kerry
Exit Mechanism Company ensures deliver y needs in certain regions
supply of feed raw materials. and Xiamen C&D. This collaboration has increased raw material transforming long-haul transportation cycles into shorter credit sales strengthened complementary advantages in
During regular or periodic evaluations suppliers who violate
Monitoring Market Trends ones and improving delivery efficiency. logistics and warehousing resources and facilitated information
laws and regulations or fail to meet contractual requirements are
sharing on industry research collectively contributing to the
classified as D-category suppliers and removed from the Qualified The Company has established an industry research center
Implementing Dual Procurement high-quality development of the industry.Supplier Directory and will be blacklisted and disqualified. An to proactively assess and forecast market trends guiding
appeal channel is provided before suppliers are blacklisted various units to increase or decrease raw material reserves The Company has strengthened the reserve for special raw
ensuring the scientific and objective nature of the exit mechanism. based on market conditions. materials and those susceptible to supply disruptions.23 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liiuhe Co.. Ltd.. 2022 Annuall Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Sociiall Responsiibiilliity Report 24
Technological Innovation Agriculture
Enterprise
for People's
Well-being
Safeguarding Life
with Life
We uphold quality as our foundation and pledge to provide consumers with
premium products and services. Driven by our corporate mission of "profiting the
farmers benefiting the consumers" we continuously enhance our food safety
management system implement scientifically precise feeding practices
and promote the research and development of nutritious and healthy meat
products in the hope of offering consumers more nutritious healthier and
safer high-quality food. Leveraging our brand and scale advantages we
continuously optimize our feeding services safeguarding the basic rights of
our customers and achieving mutual-beneficial growth together.Contributing to the United Nations
Sustainable Development Goals25 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 26
Technological Innovation Agriculture
Strengthening Food Safety Food Quality and Safety Management System throughout the Industry Chain
Consumer Satisfaction Output
New Hope Liuhe steadfastly upholds the food safety management
concept of "there are no small matters in product quality control
and the responsibility for food safety is greater than anything else." 2022 Food Safety Technology
We strictly abide by the "Three Concessions Three No-Tolerance" Innovation Award
th
principles and have set up a comprehensive traceable quality and ——The 6 China Animal Health and Food
Safety Conference
safety management system that spans from the farm to the dining table.Proactively conducting quality and food safety trainings and audits 2021-2022 Food Safety Integrity
we are committed to producing safe high-standard meat products Organization
th
ensuring that people have access to trustworthy meat. ——The 20 China Food Safety Conference
Full Lifecycle Management
Based on strict compliance with relevant laws regulations and industry To further enhance the management level of food
standards the Company has developed guidelines for special food quality and safety we have implemented a three-
safety management and measures for quality and safety inspection tier system consisting of the Food Safety and Quality
management tailored to the characteristics of different industries Management Department at headquarters the Food
including the poultry industry pig farming industry and food industry. To Safety Management in the business line and the Safety
ensure food safety throughout the entire supply chain it has established and Quality Department of subsidiary companies.a comprehensive system of management regulations including the This system aims to promote the implementation and
Management Rules for Food Safety Red Line Management Measures achievement of the management goals of food safety
for Food Safety Supervision and Sampling Inspection 2.0 Management and quality.Measures for Food Crisis and Implementation Rules for Food Sector
Inspection 2022 Ed."Three Concessions Three No-Tolerance" Principles for Food Safety
Not letting go without When production costs conflict
uncovering the causes of with food safety food safety
substandard outcomes takes precedence
Three No- Three
Tolerance Concessions
Not letting go without Principles Principles When development speed
identifying the person conflicts with food safety food
responsible safety takes precedence
Not letting go without When system processes
implementing conflict with food safety food Process Management Relevant Support
improvement measures safety takes precedence throughout the Industry Chain and Assurance
Consumer Demands Input
There are no small matters in product quality control
and the responsibility for food safety is greater than anything else.Market Management Product Innovation Procurement Management Feeding Management
Consumer demand management Product Management of entry and exit of Management of entry and exit of
Product conceptualization conceptualization suppliers feeding input materials
Product maintenance Product development Acceptance storage and usage of raw Foster management
management and implementation material and packaging material Acceptance of livestock and
Market exit management Market exit managemen Disqualification management poultry for fostering
Production Operations Warehousing and Logistics Sales Management Consumer Communication
Cleanliness process and in-process Product storage and Dealer admission operation and exit Consumer complaint
inspection transportation management management management
Equipment maintenance Product release managemen Promotional product admission Inquiry and feedback
Calibration of measuring instruments acceptance and usage management management
OEM admission operations and exit Returns management
management
Safety and Quality Monitoring and Evaluation Safety and Quality Performance and Improvement
In-process quality Inspection and Risk Quality Data Quality
monitoring evaluation management performance management improvement
Laws and System/ HACCP Food safety Traceability standard and emergency Inspection Personnel and Budget Quality Quality regulations management management protection management management capability management communication informationization27 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 28
Technological Innovation Agriculture
Promoting the Certification of Quality and Safety Strengthening Supervision and Management of Improving Technical Capabilities in Quality
Management Systems Quality and Safety and Safety Cultivating a Culture of Quality and Safety
We carry out certifications for global food safety management systems In accordance with the characteristics of each industry we have To address the technical challenges in quality and safety during Conducting "Food Safety Month" activities to disseminate the
and standardized quality management systems for the purpose designed corresponding quality and safety inspection methods. production and operations we have established a mechanism for concept and goals of the Company's food safety to employees
of enhancing the international competitiveness of the Company in Regular quality and safety inspections are conducted to make food safety technology research development and innovation that customers and suppliers promoting shared responsibility and
the food industry. As of the end of 2022 we have obtained plenty of evaluations in each factory. Non-compliant practices are required covers the entire industry chain aiming to provide solutions. In 2022 shared benefits.certifications including 67 China HACCP Food Safety Management to be rectified within a specified period. Additionally we analyze we collaborated with China Agricultural University (CAU) to develop a Providing specialized training for personnel in different positions
System Certifications 11 FSSC 22000 Food Safety System the typical problems and excellent practices identified during the pre-slaughter drug residue detection technology for live pigs. With a and conducting assessments for all participants. In 2022 we
Certifications 3 BRC Global Food Safety Standard Certifications inspection process and conduct training and exchanges to promote groin sampler for muscle tissue sampling and testing issues related conducted 60 training sessions at the corporate level reaching
for the UK retail industry 2 ISO 22000 Food Safety Management mutual improvement. In 2022 a total of 179 inspections were to the withdrawal period of drug in the feeding stage and the safety 6094 individuals; 74 sessions at the industry level reaching
System Certifications and 13 ISO 9001 Quality Management System conducted in the subsidiaries (including laboratories) of the food and verification at the time of slaughter were addressed. This ensures the 3111 individuals; and 840 at the subsidiary level reaching 31000
Certifications. feeding industries. safety of drug residues in pigs before they reach the slaughterhouse individuals.filling the previous technological gap.Conducting1026 training sessions and training
a total of 45432 individuals.Case Study Safety Guardians: Safeguarding
Food Safety
Since 2019 we have been continuously refining the "Safety
Guardians" training program focusing on enhancing food safety
awareness and capabilities. With a specific focus on four key
positions we have developed customized professional courses
trained experienced instructors and established a comprehensive
training model for food safety. In 2022 a total of 7 courses were
developed and 18 instructors were trained as part of this program.Product Traceability Management
We attach great importance to food safety traceability Information Traceability System
management. By establishing the EBS electronic system
we integrate information technology into every stage of Feed Slaughter/ Consumer Pig Farming Industry Poultry Industry Food IndustryFeeding Storage Distribution
the industry. We also employ a food monitoring system to Production Processing Feedback
During the feeding stage each pig is We have instituted the Broiler Chicken We have established the Food Industry
promote information traceability across the entire industry
Drug equipped with a unique identification Traceability System and Standardized Product Traceability Management System. chain from feeding and feed production to slaughter Feed Feeding Residue Production Delivery
Consumer
Data Contracts Batch Data Data Feedback ear tag to ensure full traceability. In the Process designed to standardize the This system delineates the responsibilities
processing and end-point sales creating a solid firewall Test Data data
product processing stage each product markings and procedures that allow for and authorities during the product
for food safety. In addition each subsidiary company is Blue-And- is equipped with an anti-counterfeit QR the traceability of our product processing t raceabi l i ty management process
required to conduct at least one traceability drill annually Spot Food EBS/ Spot White Porcelain Check/ Iot EBS EBS Safety code that allows for verification of the steps. outlining requirements for the traceability to ensure the effectiveness of this mechanism. Check EBS Monitoring System System Traceability Platform Platform "Antibiotics-Free" certification mark. system traceability drills traceability System
ver i f icat ion and other associated
management activities.29 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 30
Technological Innovation Agriculture
Enhancing Safeguarding Animal
Nutritional Value Welfare
We treat animals with scientific farming methods providing
We prioritize the nutritional value of our food utilizing scientific
them with a comfortable environment ample nutrition
methods in livestock and poultry farming to improve animal
and meticulous care. We prioritize immunization disease
functions and meat quality. Guided by the principle of "good feed
prevention and treatment aiming to minimize animal
authentic flavor safe meat" we hope to provide customers with
suffering and stress responses while improving their overall
meat products that are safe nourishing healthy and delicious.quality of life and health.Our continuous efforts in enhancing the accessibility of
nutrition are aimed at improving consumers' h ealth levels.Ample nutrition
Precise and Healthy Breeding Through scientific feed formulation we ensure precise nutrition
to fulfill the dietary requirements of animals throughout their
We uphold advanced breeding and rearing principles and entire growth cycle.technologies. Healthy growth of pigs is ensured by insisting on We employ an automated feeding system which allows the
selective breeding promoting the development and application animals to freely eat and drink thus ensuring a plentiful supply
of feed nutrition technology regulating the management of of both feed and water.veterinary drug usage and strengthening disease prevention
and treatment. Meticulous Care
Advancing Selective Breeding Comprehensive testing for antibodies microorganisms drug
sensitivity mycotoxins and Escherichia coli is carried out on
We build a sustainable breeding system that spans the entire seedlings feed veterinary medicines drinking water and the
industry chain cultivating specialized breeds with a focus environment to ascertain the safety of breeding inputs.on high-quality meat varieties and accompanying strains. In supervision and usage registration. We establish drug usage
We regularly flush water lines using high-pressure cleaning
addition we conduct carcass slaughter measurements on pigs files record every usage and conduct regular inspections. Comfortable Environment equipment to prevent the accumulation of biofilms in water
and in conjunction with developing live body measurement Consequently there have been no incidents of drug residues pipes thus maintaining the animals' intestinal health.technologies enhancing the biological functions and meat in our pig farming operations throughout the year. The breeding farm adopts high-standard human-grade
quality of our pigs. In 2022 the average intramuscular fat structures and insulation measures to ensure a warm We implement real-time monitoring of animal health to
content in our core herd has reached 2.2%. environment during winter and a cool one during summer. enable early detection and treatment of any illnesses. We have Strengthening Disease Prevention
Furthermore stringent measures are taken to ensure that established a dedicated disease management team in the
We have developed a Bio-safety Management Manual and set all equipment and materials used pose no harm to the pig farming sector to refine our disease monitoring and early Optimizing Nutritional Formulations
up a Bio-safety Management Team under the direct leadership animals. warning mechanisms thereby ensuring the healthy growth of
By utilizing our self-developed "Hongtong" digital nutrition system our pig populations.of the general manager with the technical director taking We provide appropriate living spaces tailored to the different
we strengthen our formulation techniques promote precise charge of its implementation. This team conducts bio-safety breeds and growth stages of the animals. Effective measures
nutrition and make tailored nutrition plans for pigs based on their risk assessments for pig farms promptly formulates preventive are implemented to manage stocking density preventing Stress Reduction
breed region season growth stage and health status. measures and continuously improves the bio-safety plans. overcrowding and excessive humidity. By employing intelligent device management and information-
In collaboration with several domestic research institutions we Our intelligent environmental control system enables driven online monitoring we minimize the interaction between
Ensuring Strict Use of Veterinary Drugs persistently conduct research on disease control and pathogens real-time monitoring of on-site environmental indicators personnel and animals thereby reducing stress responses
continually optimize disease control and purification methods and assist including temperature humidity PM2.5 and others. The during the breeding process.We strictly comply with national regulations on the use of veterinary
system also issues alerts as needed facilitating precise
drugs forbidding any pig farm or breeder from purchasing storing in developing customized programs for controlling major diseases. Prior to transportation livestock and poultry are put through management of the breeding environment.or using prohibited drugs. For commonly used antibiotics we All our pig houses are enclosed structures fitted with a three- a period of fasting and rest. We adopt gentle transportation
follow a rigorous procurement process to acquire legal products. tier air filtration system mitigating airborne transmission of methods to minimize stress responses during lengthy journeys.We strictly manage the in-field drug usage process to ensure the viruses. We enforce stringent entry management for personnel We utilize humane methods such as gas stunning to minimize
rational and precise use of medications through measures such materials and vehicles ensuring bio-safety measures are animal suffering during the slaughtering process thereby
as reasonable applications veterinary approvals warehouse effectively upheld thus securing the health of our pigs. enhancing the quality of meat post-slaughter.31 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 32
Technological Innovation Agriculture
Creating Healthy Foods Improving Service Quality
As a company deeply engaged in meat products we advocate the trend of healthy and nutritious diets and actively develop
nutritious healthy and rich meat products to meet the health needs of consumers with the public's nutritional needs as our We place great emphasis on improving customer satisfaction Case Study Cooperative Farming Model Enhances
guide. by continuously optimizing our service model. We strive to Farming Efficiency
enhance our customer service system and standards providing
PURE Meat Sausage Series of Simplified Recipe channels for listening communication and feedback. We are In order to help farmers improve pig breeding productivity The SwineSavor Series Products with committed to safeguarding the basic rights of our customers and reduce production costs we have launched a cooperative
"Antibiotics-Free" Certification
We actively pursue technological innovation to and making effort to create better service. farming model in scale pig farms nationwide. The objective is to
minimize the use of artificial additives in our integrate industry advantages and resources centering on nine key
We have developed the SwineSavor series products. Our PURE meat sausage series is free
service areas. Our aim is to bring the most systematic pig farming
from artificial flavors MSG soy protein starch technology to pig farms and develop suitable technical service which is the first deep-processed pork product Optimizing Farming Services programs according to the specific conditions of each farm.certified as antibiotic-free. The pork comes etc. providing a burden-free diet. Additionally
from antibiotic-free farms. Its production strictly it provides 55% more protein (PURE Original We have always adhered to the "Company + Farmers" farming Piglet Procurement
follows relevant standards and the products Flavor) than the industry standard. model. On the one hand the Company provides technical Nutrition ProgramAssisting pig farms in
undergo testing by authoritative organizations support high-quality piglets good feed vaccines and sourcing high-quality Providing precise
to ensure they are free from antibiotics or medications as well as order collection. On the other hand piglets from local suppliers and tailored product
synthetic antibacterial drugs. Additionally Controlled-Calorie Chicken Breast/ Sausage farmers provide standard farming facilities and labor for farming. or the New Hope. packages for scale
pig farms to meet the
products of this series have a 25% reduction This mutual-beneficial approach allows the Company to make
We pay attention to the fat content of our Financing Support nutritional requirements
in salt and contain no added monosodium profits while helping farmers increase their income.products and have developed a healthy option of pigs at each stage.glutamate(MSG) for healthier intake. Addressing the challenges
of high-protein and low-fat. By using xylitol Throughout the farming process we deploy on-site managers to of difficult slow and costly
instead of refined sugar we not only reduce investigate the farming conditions and track various indicators. financing through the New
Bio-safety
calorie intake but also make it possible for They provide feeding advice and technical training to farmers Hope financial platform
Strictly adhering to the
four levels of bio-safety
individuals with high blood sugar and diabetes assisting them in improving efficiency. In cases involving health and inclusive guarantee. classification to ensure the
to enjoy our delicious food. and disease issues the managers collaborate with veterinarians Pig Insurance safety of the environment
and feed formulation experts to provide technical support for
Calorie content: one pack of controlled-calorie chicken breast (approximately and products.
127 kcal) ＜ one avocado (approximately 171 kcal) treatment and feeding. In 2022 the poultry industry launched Assisting pig farms in
the "Farming Elite" training program in which a series of training purchasing insurance to Animal Welfare
provide security throughout
sessions for outstanding farm managers and technicians were Servicesthe whole process.Calcium-Enriched Ham Sausage held. The training covered various topics including standardized Offering New Hope
farming shed placement technology disease prevention and Fenglan animal welfare Farming SOP products along with 200+
While ensuring the inherent nutrition of our control management technology and feeding management Providing technical animal welfare testing
products we strive to develop nutrient-fortified technology. guidance on-site support services.foods. Our Calcium-Enriched Ham Sausage is process control and
formulated to contain a higher calcium content standardized farming SOP. Sales Services
(120mg/100g) with more nutrition. Poultry Farming Service Professionally assessing
JianZhuBang market trends connecting
Shed Upgrades Technical Training A data management software with multiple channels
Water Quality Testing Poultry Hatchling Growth for scale pig farms enabling and facilitating capital flow.Inspection customers to access real-
Water Tank Cleaning Antibody detection time farm data
Pig Breeding Service
Pig Inventory Display Online Diagnosis for Sick Pigs
Technical Support Vaccines and Medications Sow Data Analysis JianZhuBang: Animal Protection
Order Collection Data Management Product ProcurementHigh-Quality Feed Nursery and Software for Pig
Fattening Analysis Farms Pig Farm
High-Quality PigletsWater Collaboration Model
Boar Data Analysis Feed Package Data33 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 34
Technological Innovation Agriculture
Focus on Customer Experience Safeguarding Customer Rights
We adhere to the service philosophy of customer-centricity and continuously Product and service complaint handlingrate We strictly adhere to laws regulations and regulatory requirements earnestly protect customer privacy insist on responsible
strive to enhance the quality of our customer service. We persistently improve marketing and make every effort to safeguard the basic rights and interests of our customers.our mechanisms for customer feedback and complaint resolution providing 100 %
heartfelt services to make customers more satisfied. Information Security and Customer
Privacy Protection Zero major incidents of information leakage throughout the year.We respect and protect customer privacy and strictly follow laws and regulations
Customer Feedback Channels Case Study including the Cybersecurity Law of the People's Republic of China the Data Security
We value the feedback of each and every customer. They can interact with us A Full Lifecycle Customer Law of the People's Republic of China and the Personal Information Protection Responsible Marketing
Law of the People's Republic of China. Accordingly we have established regulations
through multiple platforms and channels including the 400- customer service Management System Improves
Service Efficiency and Experience and guidelines including the Information Security Management Measures Terminal We actively comply with the Advertising Law of
hotline WeChat official account and our online official mall. The feedback Security Management Measures Data Security Management Measures and Emergency the People's Republic of China and other laws and
handled by our professional customer service staff is considered a valuable guide Response Plan to identify critical areas where information leakage may occur in our
for our improvement by which we can enhance product quality and service levels In order to better identify and respond to
regulations strictly carry out compliant promotion
business processes and formulate clear response procedures. In accordance with the
and strengthen customer loyalty. customer needs we conducted a systematic and
and resolutely prevent the dissemination of false
Personal Information Protection Law of the People's Republic of China the Company has
comprehensive review of the entire customer information. All advertisements and promotional implemented corresponding measures to protect the personal basic information identity
Customer Complaint Resolution Mechanism lifecycle in 2022. We established standardized information biometric information education and employment information health
materials must undergo thorough review before
service processes and requirements and piloted and physiological information property information and other sensitive information they are placed on the market. This is to avoid
The Company follows internal procedures and guidelines to handle all complaints a full lifecycle customer management system of employees and customers. We follow the principle of least privilege strictly limiting false associations or interpretations of advertising
received from customers suppliers and partners. Corresponding measures are (CRM system) in the feed business. This system internal access to employee and customer private information. The application slogans product packaging and service names
development and deployment process are rigorously controlled and sensitive personal
taken to actively investigate and address the complaints ensuring timely and visualizes the various stages of the customer by consumers achieving responsible marketing.information is desensitized and encrypted during network storage and transmission.effective resolution of consumer complaints. In 2022 the Company's complaint- lifecycle enabling us to track the service process
handling rate reached 100%. from the customer's perspective and improve In 2022 we set up the Data Security Management Committee and the Confidentiality
Committee to coordinate the data management of New Hope Liuhe from three aspects:
our service. We also continuously monitor state secrets corporate secrets and personal privacy information. We have also Revised marketing policies for
Enhancing Customer Satisfaction customer satisfaction evaluations and feedback designated confidentiality coordinators in each department to form an information the pig farming industry in 2022:
optimize internal management efficiency and security management system that penetrates all departments and further enhance the
We attach great importance to optimizing customer service. In 2022 we established improve resource allocation. Evaluation and Management Measures for Company's information security management capabilities and level.a customer evaluation system from a pilot project in the pig feed business. Marketing Personnel
In order to strengthen our employees' awareness of security we have established
Satisfaction surveys targeting key customers were conducted with direct Regulations for Customer Management in
a WeChat official account of information security that regularly disseminates rules
suppliers and dealers as our focus. We also identified gaps between customer Pig Salesregulations and cautionary examples related to information security. In addition we
experience and expectations and followed up on improving issues across various have carried out eight specialized training sessions on information security which Notice on Standardizing Sales Process
industries. Our continuous efforts aim to refine and enhance service quality. encompass topics such as information security management requirements and Management
techniques for defense against both internal and external threats. These measures Notice on Implementing Standardization of
are designed to enhance our capacity to protect information security and prevent any Sales Documents in the Pig Farming Industry
leakage of customer information.The feed after-sales team visited aquaculture farmers providing meticulous and satisfactory services. Official Accounts of New Hope Liuhe Information Security35 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 36
Technological Innovation Agriculture
Exploring the
Development of
Smart Urban and
Rural Areas through
Technological 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 innovation
of key industrial technologies with major scientific research projects. The Company
continues to invest in various fields including intelligent farming genetic breeding and
bio-safety to release its potential and vitality through innovative development. With
the dual engines of technological progress and digital transformation the Company is
reaching new heights with high-quality development.Contributing to the United Nations
Sustainable Development Goals37 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 38
Technological Innovation Agriculture
Driving Development through
Technology R&D investment: RMB 302.13 million
New Hope Liuhe continually amplifies its commitment to technological research and innovation through a year-on-year increase of 3.51%
constructing a technological innovation ecosystem anchored by four research institutes alongside a
Collaborative Innovation Research Institute promoting the conversion and application of scientific
achievements fostering an open inclusive environment for innovation and attracting an influx of top- The number of R&D personnel: 1094 .tier research talent to bolster our inherent innovative capacity. Moreover by reinforcing collaboration and
exchange with industry partners the Company collectively stimulate high-quality advancement in the
industry sparking the impetus for industrial upgrading. Granted13 provincial and municipal talent
program projects cumulatively.Technology Innovation System
New Hope Liuhe has constructed a "4+1" science and technology innovation system. The four major On March 9 2022 at New Hope Liuhe's Digital Transformation and Lighthouse Introduced1 academician.Project Launch Meeting Minggui Zhang the Executive Chairman and President
industry research institutes: Feed Research Institute Pig Farming Research Institute Poultry Industry of the Company proposed the transformation goal of "Three Full Scopes Four
Research Institute and the Food R&D Center conduct applied research and development. The Collaborative Transformations".Innovation Research Institute focuses on forward-looking and collaborative research. The system essentially
achieves scientific and technological empowerment that covers the entire agricultural livestock and food and efficient as well as cost-leading solutions to lead the scientific
A total of science and technology
industry chain aiding the company in achieving sustainable and high-quality development in diverse areas upgrading of product farming. On the consumer side we strive to develop 71
such as feed swine industry poultry industry food processing and safety and animal welfare. excellent products that offer consumers a healthy delicious and delightful innovation platforms including a
experience. 11 t the
Decision Making Science and Technology Management Committee The four industry research institutes and the Collaborative Innovation national level and18at the provincial level.Research Institute focus on applied technological innovation activities
Consultation Academic Advisory Committee empowering industries and undertaking national key R&D programs. A total of 39 first-tier R&D bases and
Collaborative Innovation Research Institute 26 pilot bases.Research Management
Animal Nutrition Biological Disease Prevention Department
Forward-looking Group Breeding Group and Control Group Collaborative Innovation Research Institute
Research Science and Technology
Collaborative Breeding Food Processing Intelligent Project Center Feed Research Pig Farming Research Poultry Industry Food R&D Center
Research Technology Group Group Equipment Group Institute Institute Research InstituteScience and Technology
Safety and Environmental Protection Group Platform Center Antibiotic-free feed Optimizing pig breeds Livestock and poultry Food R&D
Science and Technology Bio-environmental through breeding engineering breeding Food storage and
Achievement Center protection Bio-safety prevention and Establishing feeding preservation
Applied Research Feed Research Pig Farming Poultry Industry Food R&D
Institute Research Institute Research Institute Center Science and Technology Feed substitution
control standards Transportation and
Ecological Construction Formulation iteration Upgrading management Scientific upgrading of preservation
Center and upgrade technologies commodity livestock farming Upgrading health
Transformation Feed BU Pig Industry Poultry BU Food Overseas BU R&D of intelligent equipment and nutritionand Application Industry
Building Innovative Platforms Enhancing Innovation Capability
New Hope Liuhe is actively setting up national-level scientific and technological platforms in the areas of feed and breeding to We have established and improved the assessment incentive and promotion mechanisms for research personnel. We have
expedite the transformation of R&D infrastructure and enhance testing conditions. By optimizing collaborative mechanisms and formulated incentive policies such as New Hope Liuhe Co. Ltd. Reward Measures for Encouraging and Promoting Technological
incentive measures the Company aim to foster a symbiotic relationship between our R&D platforms and scientific talents which will Innovation and New Hope Liuhe Co. Ltd. Rewards Measures for Intellectual Labor Achievement (Trial) and other incentive policies to
promote a healthy cycle of technological innovation and enhance our innovation capabilities. motivate employees to make innovations based on their respective positions and responsibilities.On the farming side we commit to providing farmers with biotechnology products that are cost-effective environmentally friendly39 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 40
Technological Innovation Agriculture
Intellectual Property Protection Strengthening Cooperation and Exchange
New Hope Liuhe value intellectual property protection heavily and strictly abides by relevant national laws and regulations. We have We progress with social advancement and we develop with industry growth. New Hope Liuhe actively embraces cooperation
formulated the New Hope Liuhe Co. Ltd. Intellectual Property Management Measures to comprehensively strengthen the creation continuously strengthens collaborations with governments enterprises and research institutions etc. We also participate in the
utilization protection and management of intellectual property hoping to promote the localization of germplasm resources as well as formulation of industry standards contribute our strength and wisdom to the industry's development and join hands with our
breeding technologies and ultimately enhance the Company's core competitiveness. partners for a better future.Cooperation and Exchange Industry Exchange
Tackling "Pig Chips"
By the end of 2022 We have signed a strategic cooperation agreement with Members of our research institutes and laboratories have We are committed to building "pig chips" with independent Chengdu Xingcheng Investment Group Co. Ltd. (CXIG). Both participated in domestic and foreign industry seminars and
intellectual property rights breaking the long-standing reliance we submitted a total of parties will collaborate in the fields of agriculture animal exchange forums to share development experiences and
on imported breeding pigs and overcoming the bottleneck of 2763 husbandry food urban-rural environmental governance provide professional advice and technical guidance for growth breeding technology. Through the cultivation of specialized breeds patent applications urban development and healthcare. We have also upgraded of the industry.and supporting lines as well as the integration of production with our comprehensive strategic cooperation with Xiamen C&D Inc.academia research and breeding we strive to establish a
1837 to strengthen our existing grain trade and innovate logistics commercial system of "China's lean breed pigs" and make every Standards Formulationpatents granted. cooperation for grain storage and transportation from northern
effort to tackle the problem of "pig chips" germplasm resources. to southern regions. We actively participate in the formulation of national and
industry standards including Quality Grading of Livestock and
The first Poultry - Chicken GB/T 19676-2022 Specifications for the Use
Self-developed Feed Formulation System of Depilatory Agents for Livestock and Poultry GB/T 41550-
agro-livestock enterprise in China with a self-
2022 Quality Grading of Lean Pork GB/T 42069-2022 and
We have developed the Hongtong·NHF formulation system a developed formulation system implemented General Guidelines for Bacon Quality GB/T 23492-2022. These
feed formulation system with independent intellectual property across all factories. standards cover various aspects such as feed food slaughter
rights. This system has been fully launched and is implemented in and testing to promote industry development.
148 feed factories covering four types of feed and involving 137
nutritionists. It has accumulated a nutritional value database for We have taken the lead or participated in the formulation
over 200 kinds of non-grain raw materials. When there are changes
in the availability and cost of grains and various alternative raw of19 national standards 16 local standards and
In September 2022 the supply chain project of New Hope and Xiamen
materials the system enables rapid iteration to generate optimal C&D Inc. settled in Siming District Xiamen. roup standards that have been published.formulations. 30
Independent R&D of Pig Breeding Software
We have independently developed the HUGE-HOPE a software
for pig management and genetic evaluation with independent
intellectual property. It supports multi-trait genomic and
SSGBLUP calculations enabling the joint computation of breeding
values across the entire population and generating optimal
breeding plans. By using intelligent new mating technologies
excellent breeding pigs can be maximally utilized. By incorporating
RFID technology for comprehensive traceability the software
enables whole-genome breeding on the basis of the five-stage
selection process which enhances the accuracy of breeding value
estimation and reduces breeding costs. Technicians bring technical services to the farms. In November 2022 New Hope signed a strategic cooperation agreement with CXIG.41 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 42
Technological Innovation Agriculture
Upgrading Smart Farms
Pig 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 scientific research production training visitation environmental protection and Pig Farming in Multilevel Building
safety. Advanced technologies such as intelligent environmental control and intelligent feeding are applied to simultaneously improve New Hope Liuhe innovatively puts forward the "5S" building pig farming model By the end of 2022
economic and ecological benefits. which addresses the challenges of traditional building farming such as difficulties
in disinfection and disease prevention in pens hidden biological safety risks and 15 projects have implemented the
insufficient measures for preventing and controlling pig diseases. This model multi-level building pig farming model.Modernized and Intelligent Farming combines technology engineering and equipment in an organic manner effectively
saving land resources reducing operating costs in the long run improving production
New Hope Liuhe is fully promoting modernized farming. Intelligent pig farms are being built in Pinggu Beijing and Xinjin Sichuan. The management efficiency and achieving a win-win situation in terms of social
Company continuous to optimize the spatial layout of pig farms improve equipment and facilities and enhance the level of bio-safety economic and environmental benefits.management for the purpose of achieving unmanned or minimally manned farm management and drive the gradual upgrading of pig
farms towards scale standardization and intelligence.Advantages of New Hope 5S Building Pig Farming Modal
Case Study Intelligent Pig Farm in Xinjin: Advancing towards Intelligent Farming science settlement
Each floor of the building is an independent intensive pig farm Production units are clustered with sows and fattening
New Hope Liuhe's intelligent pig farm in Xinjin Sichuan China avoiding frequent transfers between floors and improving pigs housed in the same area reducing labor consumption
showcases the progression towards intelligent farming in the country. efficiency. disinfection costs and bio-safety risks caused by frequent pig
Housing nearly 2000 sows this facility features a five-story building
an automatic ventilation system and a comprehensive set of Considering the climatic conditions in different project
transfers.automated feeding equipment providing a comfortable environment areas the environmental control system is optimized while Production management is carried out by gathering
ensuring proper ventilation and cooling inside the facility. professionals in veterinary medicine nutrition breeding and
for living and breeding. The project with an estimated total
other fields.investment of approximately RMB 170 million constructs a multi-story The design of the manure cleaning process is optimized with
smart pig farm covering functions such as offices and living areas the pipelines arranged in each floor's deodorization room to Industry links are consolidated including on-site feed
feed workshops breeding workshops slaughter workshops and prevent cross-contamination of manure between upper and formulation workshops and slaughterhouses within the farm
organic waste treatment areas. It anticipates a sow inventory of 1500 agricultural production water standards which is then supplied to the lower levels and ensure bio-safety. forming a closed industrial cluster.expecting to yield around 13000 high-quality breeding pigs annually land for consumption to complete the breeding cycle. Through this
in addition to 27000 by-products of breeding pigs. process wastewater is nicely treated while soil quality is well improved. safe save
More Land-saving Smarter and Safer A closed-loop bio-safety system is established to cut off the The building structure is optimized to save construction costs.sources and pathways of transmission.The complex consists of 5 floors and only occupies 30 acres of land Each floor of the pig house is designed with air filtration rooms pig Energy-efficient materials are used to reduce the cost of
adopting the high-rise pig farming model. This is significantly more driving alleys deodorization rooms and production units. Supporting A comfortable housing environment for pigs is established to temperature control and maintenance in pig houses in the
land-saving compared to traditional farming methods that would facilities include a 60-scale boar station 40 sets of electronic feeding enhance their health level. later stage.require 70 acres for a pig farm of ten thousand heads. and measurement stations disinfection rooms and so on. Automated Combining the terrain and topography skylights are installed
technology is used to regulate temperature feeding and control to utilize natural resources to enhance the resilience of pigs.More Environmentally Friendly lighting. With the one-click intelligent operation of environmental control smart
it ensures that the temperature humidity and air quality on each floor
Based on the principle of "3R" (Reduce Reuse Recycle) we have are maintained at the optimal level for the healthy growth of pigs. Through biometric recognition intelligent environmental The system is interconnected with feed factories equipment
established the ecological agriculture model combining "breeding
- organic fertilizer - planting" with the symbiosis of multiple species In every pig house within the farm there is an air filtration system.control and precision feeding remote monitoring is suppliers and technical centers enabling services such
implemented in pig farms to save labor costs. as direct supervision by feed factories remote equipment
and multi-level utilization of quality and energy. In terms of manure Following the bio-safety grading management concept of "Great operation monitoring by suppliers and comprehensive
management USAB + two-stage A/O and fermentation tank technology Wall - Pass - Guard" different levels are divided boundaries are set Data analysis is conducted through the system allowing for guidance by research institutes or group technical teams.are adopted. Solid manure and sludge are processed in the fermentation checkpoints are established and carriers are blocked. As a result informed decision making and necessary adjustments to
production. These measures aim to enhance production efficiency and
tank to make organic fertilizer. Wastewater is degraded to meet breeding risks are reduced and safety is enhanced. product quality.43 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 44
Technological Innovation Agriculture
Creating A Digital Enterprise
By targeting to the "three fulls and four transformations" digital transformation strategy under the framework of "integration of
industry and digital management" New Hope Liuhe is driving a close coupling of business operations with digital technologies. This Digital Product Matrix in Six Major Domains
convergence actualizes intelligent key equipment full-scene business data integration full-data online functionalities and proactive
full-process management achieving comprehensive online operations. Digital technologies are deployed across four major industries
covers poultry food pig and feed and six critical areas including R&D farming production supply chain sales and customer service Domains R&D Breeding Production Supply Customer Chain Sales Service
bolstering the Company's operational efficiency and core competitiveness.Hongtong Poultry - digital Production implementation Xinsu Liaonifu Mall Xinkedao
Key Digitalization Efforts in the Four Major Industries breeding platform management system
HUGE-HOPE Cloud-based free- Pig slaughtering Pig Industry Poultry Industry range farming MES system Xinyun Fengxingbao
On the breeding side we have developed and promoted big data From the onset of breeding we have established a PLM new product
submission Huiyangzhu LIMS system Yunge Jingzhunyingmatching models to identify and match "excellent" breeding pigs. standard selection process for Zhongxin duck breeding. Products
Business is driven through the pyramid supply-demand calculation By leveraging Internet of Things (IoT) devices application Zhuxiaokang / Near Infrared Poultry breeding
model to achieve the balance between the supply and demand of we have enhanced breeding efficiency in key stages such Zhizhuxia Detection (NIR) Jingwei marketing system
"excellent" breeding pigs. as selection egg collection and incubation.Pig farming
On the production side we have extensively promoted the operation At the farmi ng stage detai led management is operation planning Central kitchen
SMOM system Jubaozhu
of breeding pigs and established a systematic framework for implemented for feed tower equipment feed dispensing system
planning procurement warehousing and consumption traceability loading and procurement processes enabl ing Zhongxin Duck -
in the field of the supply chain. automatic collection of feed consumption data real-time breeding
On the sales side we have achieved visualization of the sales process monitoring of anomalies and the execution of precision
through standardized and intelligent management at the sales site. feeding.We also ensure the supply of the live pig market by diversifying On the sales front we have established a marketing
transaction modes to match the characteristics of platform to oversee channel sales management and Xinsu Lighthouse Pig Farm
different regions and markets. enable end-to-end order management. This
Xinsu provides a comprehensive digital solution for Lighthouse Pig Farm integrates various technologies
In the realm of IoT breeding technology allows for full process visibility and closed- raw material procurement covering the entire lifecycle in terms of intelligentization including precision
we have reached phased goals in loop management covering every step management of suppliers and procurement. feeding weighing systems manure scraping
areas like temperature monitoring from customer order placement order technology environmental control feed l ine
networked weighing scales and delivery and logistics weighbridge technology intelligent water and electric meters
feed tower weighing all of which monitoring to after-sales service. Liaonifu Lighthouse and centralized control technologies. This enables
are being gradually promoted. Pig Farm intelligent networking of key equipment allowing for
Simultaneously the Lighthouse Liaonifu has transitioned traditional feed sales from online detailed data gathering for core production
Pig Farm project is undergoing offline to online enabling customers to self-order and stages such as environmental control feeding
testing. facilitating online coordination of the entire process and sales. Furthermore it establishes a proactive
from order placement payment processing and control process for remote operations and process
Feed Industry Food Industry logistics tracking to financial reconciliation. In 2022 management.the Company traded millions of tons of feed online
We have achieved a significant shift in our core formulation system The digital capabilities for terminal visits and refined ensuring a steady supply for numerous farmers. Xinkedao
moving from dependency to self-developed alternatives and then management of marketing expenses are enhanced by
further evolving to outperform the initial models. Through optimizing utilizing the self-developed visit and sales management Zhongxin Duck - Breeding Xinkedao an independent development by New
our formulations and focusing on precise nutrition we have been system and marketing management system. Hope Liuhe is designed to offer superior and efficient
able to reduce costs and conserve resources. Through the combination of Xinkedao and Zhangshang The self-developed Zhongxin Duck breeding customer lifecycle management and customer service
capabilities. It digitalizes customer order services to
We have deepened our digital procurement practices. By providing Xinxian digital capabilities of the entire process from management system utilizes big data analysis to
achieve automated breeding selection. It combines enhance service quality and cooperation efficiency operational support across the entire procurement lifecycle we effectively customer self-service ordering to order fulfillment are
empowering partners through various business stages
control supply chain risks. This ensures that we can maintain steady improved. Additionally the use of Qingbaotong and PLM IoT devices to enable automatic grouping automatic
production even in the face of multiple external adversities. facilitates scientific decision-making for new product recording of egg production and traceability Zhongxin including market expansion and order fulfillment. It Duck
throughout the entire incubation process. It ensures also bolsters the coordination capabilities in order
We have completed the digital construction of logistics primarily proposals. precise automated and intelligent breeding and tracking and logistics delivery offering customers
based on bulk raw materials which contributes to the secure supply selection. high-quality supply chain assurance.of societal livelihoods.45 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liiuhe Co.. Ltd.. 2022 Annuall Corporate 45 Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope 新希望六和股份有限公司 202S2o 年cii度all 企Re业sp社on会sii责biil任liity报 R告eport 46Technological Innovation Agriculture 46
Green
Industry
Sustaining Nature
through Circular
Agriculture
The report of the 20th CPC National Congress stated that "Chinese-style
modernization is a modernization where where humans and nature coexist
harmoniously" which clearly outlines the new historical tasks and significant
implications of ecological civilization construction from a strategic perspective. As
an agricultural and livestock enterprise New Hope Liuhe is devoted to preserving
the health of our planet. We protect nature through a circular agriculture model
continuously enhance our environmental management system promote a
transition towards efficient energy use and resource utilization reduce waste
emissions at the source and strengthen ecosystem protection. All these efforts
contribute to the construction of a beautiful China.Contributing to the United Nations
Sustainable Development Goals47 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 48
Technological Innovation Agriculture
Improving Environmental
Management
New Hope Liuhe actively responds to the national requirements for green and Ensuring Environmentally-
low-carbon development and strictly adheres to environmental protection Focused Talent
laws and regulations such as the Environmental Protection Law of the People's
Republic of China Energy Conservation Law of the People's Republic of China In 2022 we established a standard model for the construction of
and Environmental Impact Assessment Law of the People's Republic of China. an environmental protection talent system accurately mapping
We incorporate the concept of green low-carbon and sustainable development out the profiles of personnel in the crop cultivation sector and
into our organizational structure set scientifically sound environmental environmental protection stations thereby optimizing the allocation
management objectives continuously improve our environmental management of safety and environmental-focused cultivation staff. Furthermore
system provide environmental protection education and training and manage we conducted tiered targeted environmental protection training
emergency environmental incidents. We strive to achieve coordinated progress through online and offline methods covering topics such as
in corporate development and environmental protection. equipment operation equipment maintenance process operation
and environmental laws and regulations. We also provided timely
Environmental Management System feedback on training outcomes through an examination system enhancing employees' awareness of environmental protection
Environmental management viewed as a strategic issue has been included compliance and their abilities in environmental protection.in the management domain of our board-level committees. We've established
energy-saving and environmental protection policies such as the Environmental Environmental Protection Inspection
Protection Management Regulations Environmental Risk Early Warning and and Supervision
Response Mechanisms and Environmental Performance Assessment and Reward
Management Methods. Our environmental management system continues to To ensure the effective implementation of environmental
improve in areas such as comprehensive management organizational structure management tasks we have established inspection mechanisms
responsibility implementation green innovation mechanisms emergency such as on-site inspections and fly-by inspections. We conduct
management and supervision and assessment. Moreover we optimize regular inspections based on a 100-item inspection checklist
environmental management regulations according to the unique requirements ensuring that at least 15 projects are inspected each month and all
of different industries such as improving the collaborative management between projects are inspected quarterly. The issues identified during the
pollution control at the front end and environmental protection processing at the project inspections are recorded and used to form monthly project
back end of the pig industry. In addition we include environmental management rankings and quarterly industry-wide rankings thereby continuously
indicators in the performance rewards for management enhancing our holistic improving our environmental protection standards.capacity for green development.Optimizing the Organizational Structure of the
Environmental Management Expenditure on environmental protection:
The Company has established an Environmental Protection Management Committee RMB151.18 million
to lead its environmental management work. We have set up a five-tier environmental
management organizational structure from the headquarters to industry operation units/ Emergency environmental incident drills conducted:
command headquarters divisions/vertical teams settlements and subsidiary companies
ensuring that environmental protection work is effectively coordinated at all levels. 582 times with 5820 participants
In 2022 in line with business development we further optimized the environmental
management organizational structure. We established a Safety and Environmental Environmental protection training for employees:
Protection Department at the Pig Industry Command Headquarters and incorporated
the Environmental Protection Institute of the Pig Research Institute into the headquarters'
Safety and Environmental Protection Department combining the two business sections 110 sessions with 25950 participants
under one team. Moving forward we will persist in our organizational optimization
efforts seamlessly integrating R&D management and on-the-ground implementation in
environmental protection thus ensuring environmental management covers the last mile.49 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 50
Technological Innovation Agriculture
Developing Eco-Friendly Animal Husbandry
Advancing the resource utilization of livestock waste is a core Wastewater Recycling Manure Resource Utilization Precision in Field Return
guiding suggestion of the 14th Five-Year National Agriculture Green
Development Plan. New Hope Liuhe has always adhered to the We employ the "UASB Anaerobic + Two-stage A/O" and We adopt high-temperature aerobic fermentation technology We are steadily exploring and establishing standard models
principle of "promoting husbandry through cultivation and leading "CSTR" processes to treat production wastewater. The using active microorganisms to carry out high-temperature for returning waste to the fields of different crops aiming
cultivation through husbandry." We actively explore and implement water treated by the "UASB Anaerobic + Two-stage A/O" aerobic fermentation of livestock and poultry manure. for precise utilization of this process. In 2022 we conducted
the circular agriculture model of "Pig - Biogas - Fertilizer - Fruit/ process meets the requirements of Discharge Standard Following the biological decomposition and maturation of detailed examinations on winter wheat and fruit trees before
Vegetable/Grain" which not only achieves comprehensive utilization of Pollutants for Livestock and Poultry Breeding (GB organic matter in pig manure we produce safe and high- during and after returning waste to the fields. By establishing
of manure resources and zero pollutant emissions but also promotes 18596-2001) and the Standard for Irrigation Water quality organic fertilizer which is applied to nearby fields to a crop database we have enhanced the precision of managing
soil improvement through the return of organic fertilizer to the field. Quality (GB 5084-2021) and is used for field irrigation. improve soil structure enhance soil fertility and improve crop and returning livestock and poultry waste to the fields.It allows nature to return to its original state realizing the concept of The biogas slurry produced by the "CSTR" and "black quality."regenerate for use to sustain nature." film biogas" is returned to the fields while biogas
residues are used to make organic fertilizers.We measure the content of soil nutrients such as nitrogen
phosphorus potassium and organic matter as well as
indicators like COD nitrogen and phosphorus in treated
water and biogas slurry. By combining these parameters
with crop growth needs we determine the amount to be
returned to the field ensuring a reasonable irrigation volume.
100000 tons of 16000000
fermented manure produced tons of treated water returned to Throughout the crop growth period we monitor
the fields for irrigation physiological indicators such as plant height stem
d W thickness and leaf area while continuously supervising soil
k a
n
nur
e ast
a e physical and chemical properties.We measure crop quality indicators such as the gluten
strength starch and crude protein content of wheat and
the vitamin C reducing sugar and acidity levels of fruits to
ensure the quality of the yield.ops a Case Study
ltiv Manure Returns to Fields Enhancing Soil Fertility: A Cu Bountiful Harvest at Tingliang Project
1600000 The Ningming Xinhao Agricultural and Livestock Co. Ltd. farm is located in Tingliang kilograms 145000 acres of Town Ningming in the southwestern part of Chongzuo City Guangxi Zhuang
of fresh fruits and vegetables produced supporting absorptive land including Autonomous Region. The region is predominantly mountainous and hilly with the
prevalent soil types being latosols red earth and yellow earth. However the soils are
60000 severely deficient in phosphorus and potassium resulting in poor fertility retention. acres of farmland Adhering to our philosophy of "promoting husbandry through cultivation and leading
cultivation through husbandry" we convert breeding waste into organic fertilizer
and reintroduce it to the fields. This not only provides nutrients to the vegetables but
also improves the soil quality. Despite its modest size of twenty acres this vegetable
plot can yield thousands of kilograms of vegetables each month contributing to the
majority of vegetable supplies for the daily meals of our over 400 company employees.This ensures everyone has access to safe and reliable vegetables.L
p ivo eu slt tr oy c m
ted Land Pre-Return During Post-Return Return
ter
wa
Cr51 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 52
Technological Innovation Agriculture
Responding to Climate Change Response Plan
Climate Change 1 By 2025 we aim to significantly increase the use of green energy across all sectors and swiftly carry out
the construction of comprehensive industry-wide
photovoltaic projects through unified standards. Greenhouse Gas Emissions
Climate change represents a shared challenge for all
of humanity and addressing this issue is pivotal to the Indicator Unit 20222 We are systematically and steadily advancing the reuse
sustainable development of the Chinese nation and the of biogas in our animal husbandry sector in phases. Direct Greenhouse Gas Emissions (Scope 1)1 Tons of CO2 equivalent 445862.90
destiny of mankind as a whole. New Hope Liuhe is actively
Indirect greenhouse gas emissions (Scope 2)2 Tons of CO2 equivalent
aligning with the dual carbon targets striving to achieve 1329400.863 In each sector we are deeply exploring potential energy-
these goals through a multitude of strategies including clean saving opportunities within the production process. Total greenhouse gas emissions Tons of CO2 equivalent 1775263.75
energy transformation unearthing potential energy efficiency Tons of CO equivalent/
optimizing feed formulas and promoting biological carbon 4 In the disposal land supporting the pig industry we Greenhouse gas emission intensity
RMB 10000 Revenue 0.1255
sequestration. Additionally we are actively implementing are progressively advancing the cultivation of crops
and fruit trees as well as forest protection. We aim to 1 Scope 1: Greenhouse gas emissions include those from the combustion of fossil fuels such as oil gasoline
carbon trading operations thereby making posit ive offset and reduce the Company's carbon emissions by and natural gas. The emission factor is based on the calculations outlined in the Guidelines for Accounting
contributions to mitigating and adapting to climate change. employing biological carbon sequestration methods. and Reporting of Greenhouse Gas Emissions in the Food Tobacco Alcohol Beverage and Refined Tea Industry (Trial Version) released by the National Development and Reform Commission.2 Scope 2: Greenhouse gas emissions include those generated due to externally purchased electricity and
Clean Energy Conversion 5 Our pig farming sector is actively promoting the heat. The electricity emission factor refers to the national average grid factor in the Guidelines for Accounting
declaration and certification of carbon offset projects and Reporting of Corporate Greenhouse Gas Emissions (2022 Revised Edition) released by the Ministry of
Ecology and Environment of the People's Republic of China. The steam emission factor refers to the emission
We actively promote the comprehensive utilization of clean (including GS VCS) with the aim of obtaining carbon factor in the 2006 IPCC Guidelines for National Greenhouse Gas Inventories.energy such as photovoltaics and biogas optimize the energy emission reductions to offset the Company's carbon
structure reduce the use of petroleum energy and assume emissions.responsibility for emission reduction.Accelerating Photovoltaic Construction
In 2022 we priorit ized the research on photovoltaic Shandong Jiaxiang Slaughterhouse and Beijing Qianxihe Food Case Study Biogas Power Generation at Rugao Xinhao Sow Factory II
construction models site selection criteria and the risks to be Company. These installations generated 10.66 million kWh
avoided during the construction process. Based on the specific over the year equivalent to a reduction in CO2 emissions of
The Rugao New Hope Sow Factory II collects manure that after solid-liquid separation undergoes a three-stage anaerobic process involving USR
circumstances of each sector we developed a "three-step" 10628 tons. black membrane biogas digester and UASB producing biogas. This biogas is stored in a double-membrane gas holder until an adequate amount
plan for the construction of photovoltaic projects: pilot projects is accumulated and then after purification it's used to power a biogas generator for the factory's use. Moreover the treated water is used for
on a small scale during the preliminary stage to summarize Promoting Biogas Utilization irrigation of the winter wheat and rice crops grown on the factory site which not only conserves irrigation water but also facilitates biological carbon
experiences and lessons learned thorough investigation and sequestration through the planted crops.strategic tendering for the photovoltaic project reservoir during
All our pig farming facilities are equipped with biogas
the intermediate stage and rapid promotion of photovoltaic
generators or biogas boilers optimizing the use of biogas
project construction across all sectors according to unified
produced during the anaerobic fermentation of pig manure. Emission Reduction Performance of Biogas Power Generation
standards during the later stage.After purification the biogas is utilized for electricity and
By the end of 2022 we have completed nine photovoltaic heating within the facilities thus reducing both electricity Manure Biogas Biogas power Sow inventory Approximately Approximately generation Equivalent CO2
construction projects such as the Beijing Pinggu 5S Pig Farm usage and gas consumption. In 2022 the recycling volume of 6000 heads/year 180 cubic meters/ 240000 cubic Approximately reductionApproximately 300 tons
biogas was 240 million cubic meters. day meters 300000 kWh
Biological carbon
Water returned to fields sequestration
Approximately 60000 Cultivated crops Approximately 240 tons
cubic meters 400 mu
Annual equivalent CO2 reduction Approximately
540 tons
Qingdao Liuhe Wanfu Food Photovoltaic Project Weifang HeshengYuan Food Photovoltaic Project53 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 54
Technological Innovation Agriculture
Tapping into Energy-Saving Potential Promoting Biological Carbon Sequestration
We are actively exploring energy-saving technologies and processes. When it comes to new projects we fully consider process design Farmland soil and crops play a pivotal role as a major carbon storehouse on Earth offering vast carbon sequestration potential. New
aimed at carbon reduction. For existing projects we carry out energy-saving technological upgrades. Through a constant enhancement Hope Liuhe's pig industry collectively manages over 145000 mu of land for waste disposal of which 60000 mu is arable land used to
of our precision energy management capabilities we aim to minimize energy consumption in all areas of our production and grow winter wheat corn and other grain crops. The remaining land is used for the cultivation of fruit trees such as apples and pomelos.operational activities. With the practice of applying fermented waste to the fields we achieve carbon sequestration in plants and soil storage resulting in an
estimated annual biological carbon capture of about 170000 tons CO2 equivalent.Technical Energy Conservation
Upgrading Intelligent Systems Apple
Pomelo
We've introduced an energy-efficient intelligent management system in our feed industry as a pilot project. Through intelligent
management 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.Energy-Consuming Equipment Obsolescence Enhancing Waste Heat Recovery
We're modernizing our feed production plants by replacing existing We recover waste heat from boilers and cooling
machines (like pulverizers ultra-micro pulverizers granulators and systems thereby reducing steam usage.dryers) with more energy-efficient ones. This change has resulted in Vegetables
an energy usage reduction and an efficiency boost of over 10%.Management Energy Conservation
Data Monitoring Environmental Control Management
In 2022 we initiated the construction of an environmental data We've adopted a farm-specific precision management
system and have completed the optimization and upgrade of the strategy in our pig farms which involves controlling
second version of the data system. We have clarified environmental the operating hours and settings of devices like
operation requirements data statistical caliber etc. and enhanced lights heating lamps water curtain pumps and
environmental data monitoring and management. direct-fired machines to decrease energy use.Responding to Extreme Weather Conditions
Energy Consumption Efficiency
As extreme weather events are becoming more frequent and inflicting significant damage across the globe effective responses to
Indicator Unit 2022
these occurrences have emerged as a shared trend in all sectors. We actively recognize the potential impacts of extreme weather
Gasoline Liters 1996306 on our business operations establishing climate report groups and initiating climate risk warnings that reach all the front lines
Diesel Liters 16328927 of our subsidiary companies. By real-time tracking of the National Meteorological Administration's website we timely report
Natural Gas 10000 Cubic Meters 18420 meteorological warnings particularly meteorological disasters like typhoons heavy rain and blizzards directly to the front lines of
Purchased Electricity 10000 kWh our subsidiaries. This action ensures that our subsidiaries in the related regions take preemptive measures mobilize professional 204055
personnel and supplies to mitigate harsh weather disasters and effectively protect our livestock and employees' safety minimize
Purchased Steam Tons 595115 the impact of climate disasters on our subsidiaries.Total Energy Consumption1 Tons of Standard Coal 533338.74
Moreover we conduct top-down climate disaster prevention lectures and post-disaster emergency self-help training to reinforce
Energy Intensity Tons of Standard Coal/RMB 10000 Revenue 0.0377 climate disaster prevention awareness across all levels and departments enhancing our capability to prevent and handle natural
disasters. In regions hit by significant climate disasters we promptly organize and coordinate various bodies at all levels to form
Note: 1The total energy consumption refers to the General Rules for Calculation of the Comprehensive Energy Consumption (GBT 2589-2020) issued by
the State Administration of Market Regulation and the National Standardization Management Committee and is converted into units of standard coal. professional working groups for rapid deployment for post-disaster self-rescue and production recovery.55 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 56
Technological Innovation Agriculture
Water Resource Management Reduction of Waste Disposal
Because animal husbandry consumes a lot of water and may cause water Total municipal water consumption: We strictly control the generation and discharge of pollutants to minimize the impact on the surrounding environment in strict
pollution water resource management in animal husbandry has increasingly 4.68 accordance with legal and regulatory standards such as the Solid Waste Pollution Prevention and Control Law of the People's become the focus of attention. We take a long-term view of how water million tons Republic of China Energy Conservation Law of the People's Republic of China Discharge Standard of Pollutants for Livestock and
scarcity affects our operations and our impact on the water we share with Poultry Breeding and Wastewater Quality Standards for Discharge to Municipal Sewers.the communities in which we operate. Formulate production water quotas Municipal water intensity:
consciously reduce water consumption strengthen water resource recycling and
reuse and improve water use efficiency. 0.3306 Tons /RMB 10000 Revenue Waste Category Waste Source Disposal Method
Within our pig houses we employ intelligent systems to control the methods
and frequency of manure removal regulate indoor temperatures and
Water Conservation Generated from livestock and enhance ventilation systems to minimize odor emissions.Odor poultry manure feed residues Spraying for odor removal in dedicated deodorization rooms. By spraying gases excreted by the livestock odorous gases are trapped in the liquid and odor molecules attached
We have set a water use quota for pig industry production. If this quota Exhaust and poultry digestive tract etc. to particulate matter are removed from the air after wet absorption
is exceeded a warning is automatically sent to alert us of the excess Gas and oxidation. Odorous gases react with the emulsifying agents in the
consumption enabling us to reduce water resources consumption at the medication and are removed from the solution.source and alleviate the pressure on wastewater treatment at the back end.Biogas Generated from the fermentation of livestock and poultry manure Used as a source of power and heat within the facility
Quota for Average Daily
Type of Pig Unit Water Use in Water Consumption Breeding Including animal urine some Treated to meet standards through the UASB+ two-stage A/O wastewater
Production in 2022 Wastewater feces and rinse water treatment process and then used for agricultural irrigation
Sow Liters/Head/Day 23.4 23 Wastewater
Domestic Discharged from the Company's Regular self-monitoring and third-party water quality testing are
Fattening Pig Liters/Head/Day 9.2 9 Wastewater administrative offices and conducted to ensure effluent standards are met prior to discharge into employee cafeteria municipal sewer systems.Including medical waste
Water Management pesticide and herbicide waste We have established a Hazardous Waste Management System to
produced during the production standardize the collection storage and processing of hazardous waste.Hazardous
Waste process and waste reagents We have fitted smart water meters established a water meter account We maintain a designated temporary storage space for hazardous waste waste acid waste alkali and keep corresponding ledger records. Hazardous waste is regularly
management system and developed a dedicated online management etc. generated during the handed over to qualified third-party institutions for safe disposal.module. This allows us to focus on analyzing instances when consumption experimental
exceeds set standards prompting improvements in water use.Dead We strictly adhere to the Standards for the Treatment of Dead Livestock and
We have enhanced routine inspections particularly checking areas in Solid Livestock Resulting from the breeding Poultry for temporary storage and treatment. We maintain accurate ledger
Manure and Poultry production process records and strictly prohibit non-compliant methods of disposal such as pig farms like water enclosures in sow gestation pens and float valves illegal storage and unauthorized burial.between wet curtains which are prone to leaks. We aim to eliminate
running surging dripping and leaking issues. Separated solid manure from
Hazardous Treated according to the Solid Manure Treatment Standard using aerobic manure scraping machines or
Waste fermentation to produce organic manure for field fertilization.solid-liquid separators
Water Recycling
Construction Waste generated during We have established a Solid Waste Management System. Designated
and Domestic construction processes and waste collection points are set up within the site with clear signage and
In the poultry industry reclaimed water is reused in duck shed pre- Waste domestic waste produced in segregation of waste with strict rules against improper disposal methods daily life such as random littering burying or burning.rinsing pre-slaughter spraying pre-area sanitary cleaning and irrigation
of green belts saving approximately 1.13 million tons of water annually.
2022 Wastewater Discharge Indicators
In the food sector we promote the recycling of sterilization water in
high-temperature low-temperature canning and rice processing Indicator Unit 2022
workshops. Through a process of recovery cooling reverse osmosis Total wastewater treatment 10000 Tons 1600
filtration softening and disinfection we reuse water in the sterilization Chemical oxygen demand (COD) treatment volume Tons 157500
step reducing annual water consumption by approximately 20000 tons.Total ammonia nitrogen discharge Tons 123237
Wastewater recycling rate % 10057 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 58
Technological Innovation Agriculture
Ecological Environment
Protection
Following stringent compliance with standards such as the Technical
Specifications for Pollution Prevention in Livestock and Poultry
Breeding we have established targeted management measures in
our Environmental Protection Management System. These measures
provide guidance on environmental protection matters at all
essential stages of our projects including site selection construction
implementation and approval with the overarching goal of mitigating
the influence on surrounding lands and biological habitats. In
2022 New Hope Liuhe did not establish operations in government-
designated key ecological zones or other areas with significant
biodiversity value. Moreover our project construction did not result in
any adverse impacts on protected or rehabilitated habitats.Site Selection Phase Construction Phase Project Operation Phase
We strictly follow national requirements for livestock and poultry breeding facility site layout arable land We strictly implement all environmental We establish an environmental protection facilities list and set up
red line and "three zones one priority zone" ecological zoning and control requirements avoiding areas of protection measures in the environmental a facilities operation and maintenance system for different types of
natural conservation key ecological function zones scenic spots prohibited farming regions and drought- impact report and supervise the "three environmental protection facilities. Regular inspections are carried
stricken areas. We do not disrupt local water sources and ecosystems. simultaneous" situations of the project. out to ensure proper maintenance achieving a 100% completion rate.We implement an environmental impact assessment system investigating predicting and assessing potential We also regularly report the operational status of these facilities to the
negative impacts on the surrounding environment from the site selection design and post-construction local environmental protection authority.operation of the project and propose preventive measures. We enhance soil productivity and reduce emissions by substituting
chemical fertilizers with organic manure and biogas fertilizers.Engineering Design Phase Completion Phase
With a focus on source control our design process proactively employs According to the ecological environment and local planting characteristics we introduce suitable
innovative technologies procedures and equipment that produce little to plant species and maximize green space wherever possible.no pollution. We strive to maximize the utilization of resources and energy Before the project's trial production or trial operation we submit an environmental impact report
reducing the emission of pollutants and ecological impact from the source. or environmental impact report form to the relevant environmental protection departments for
the acceptance of the project's environmental protection facilities.59 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liiuhe Co.. Ltd.. 2022 Annuall Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Sociiall Responsiibiilliity Report 60
Technological Innovation Agriculture
Employees
Achieving
Success
and Pursuing Excellence
through their growth
Adhering to the people-oriented philosophy of development New Hope Liuhe
earnestly protects the interests of employees and creates a growth platform for
employees to achieve the goals of attracting cultivating and retaining the staff.The Company shares the fruits of development with employees promotes the
culture of "running the Company like an army a school and a family" keeps the
workplace a harmonious place with love and has established Meihao Mutual Aid
Association to ensure the occupational health and security of employees.Contributing to the United Nations
Sustainable Development Goals
On July 15 2022 the 40th Anniversary of New Hope and the Third
Corporate Culture Festival was held and Yonghao the Company founder
and chairman led his staff to retrace the road of hope.61 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 62
Technological Innovation Agriculture
Protecting Employees' Rights and Interests Compensation and Incentives
New Hope Liuhe sticks to the strategy of putting talent first providing fair employment opportunities and a competitive salary and welfare Following the principles of market orientation we gradually establish a competitive compensation system in the The labor contract
system for employees. It has established open and democratic communication channels and encourages every staff to actively participate in industry and provide employees with statutory and additional benefits to enhance employees' happiness. We signing rate:
making decisions to promote a win-win situation for both company development and employee growth. continuously optimize differentiated incentive mechanisms establish assessment systems that are in line with
employees' development stages and set incentive-based pay for employees and executives. The evaluation index 100 %
includes financial excellent operational and risk indicators covering ESG-related assessment factors such as
Fair Employment technological innovation food safety safety production and environmental protection.Total number of employees Social insurance
coverage rate:
We genuinely respect national laws and regulations international human Employee Equity Incentive Plan Bonus Pool Mechanism
rights norms and regulations and policies of the place where we operate 77328
such as the Labor Law the Company Law and the Labor Contract Law %To improve the long-term incentive mechanism and motivate the Based on market fluctuations the 100
and have formulated systems such as the New Employee Handbook and
management team and core backbone personnel the Company Company has established a bonus
the New Hope Liuhe Employee Professional Conduct Guidelines. In the
Standards of New Hope Liuhe Business Conduct Guidelines the New Hope has formulated the 2022 Employee Stock Incentive Plan to launch pool mechanism for executives in The return-to-work
Liuhe Red Line and other systems the code of conduct and requirements an equity incentive for the most people in the Company's history headquarters to balance the incentive rate after parental
for employees in all respects are specified. The Company adheres to the Male staff Number of Female staff covering 2399 people from executives to frontline factory managers in different years. leave:
principle of "openness fairness and impartiality" adopts the recruitment 50263 employees by 27065 through a combination of employee stock ownership plan and
methods of two-way choice equally treats employees regardless of race gender restricted stock incentive plan. 100 %
skin color gender age and belief and eliminates illegal employment such
as child labor and forced labor and employment in violation of policies and
regulations providing equal employment and development opportunities Multiple Welfare Benefits
for each employee. At the same time the Company aims to build a diverse
workforce that respects the religious beliefs of each employee taking Under 30 We have established and continued to improve the welfare system. We work to increase its diversity and years old
into account factors such as gender culture experience and professional 30-50 motivate employees providing more protection for the staff and enhancing their sense of happiness.Number of
background. We provide special care for minority employees on the basis of 19641 emNupmloyb
years old
eeer so bf y
their demands and accommodate disabled employees depending on their emploagyeees by 46111gender Statutory benefits: social insurance housing provident fund paid leave parental leave (maternity
physical conditions by arranging appropriate job positions and designing 51 years old and above leave) funeral leave etc.reasonable working hours and labor intensity continuously improving
Featured benefits: free accommodation employee physical examinations catering subsidies
workplace inclusivity and the Company's sustainability. Employees have 11486
housing subsidies etc.the right to report any violation of the Employee Professional Conduct
Guidelines to relevant leaders and institutions and the Company will keep High school education Associate
it confidential and actively conduct an investigation. or below degree
Number of
In active response to the call of the government we have implemented 37651 employees by 15162 Employee Participation and Communication
policies to support and benefit the military and continued to promote educational
the recruitment of veterans as a strategic talent project. We provide background The Company adheres to the people-oriented management philosophy and actively promotes democratic management through various
1000 targeted positions for retired soldiers every year and set up a green Undergraduate Graduate/MBA
degree or above measures. We have formulated and continued to improve regulations such as the Performance Management System and Accountability channel to offer 100 positions for retired model soldiers who have made
contributions or outstanding ones without examination. At the same Management System to safeguard employees' right to appeal. We use OA system to publicize various regulations notices and announcements to 20670 3845
time the Company pays great attention to the training for retired soldiers ensure employees' right to know participate and supervise.. For the purpose of increasing employees' participation in enterprise management Hong Kong Macao
continuously improves the mechanism for their development and and Taiwan and strengthening the construction of corporate governance transparency communication channels such as email Feishu and public phone
encourages special forces to become a talent output base for production Chinese numbers are kept open to enhance employees' sense of ownership.leaders front-line veterinarians and biological safety inspection teams. Mainland Number of 5
All the efforts are made to help retired soldiers realize their values in New 69097 employees by overseas Actively Adopting Suggestions Democratic Supervision Performance Feedback and Appeal
Hope Liuhe. By the end of 2022 there were 1294 retired soldiers among the region 8226
Company's employees including 181 ones in management positions and Continuous improvement has been made Complaint and whistleblowing channels The Accountability Management System and
557 who have grown into professional and technical talents. in feedback mechanisms for employees. are open to receive complaints or other systems have been created and smooth
The HRSEC Hotline was set up on the whistleblowing from employees. A channels for employees to give feedback or appeal
employee service platform to receive complainant protection mechanism has on performance results have been established.Number of employee The proportion of ethnic feedback from employees on any opinions been established to strictly protect the Through such efforts we can receive employees'
discrimination incidents: minority employees:
suggestions or questions about the personal information of whistleblowers. opinions on performance evaluation results and
0 6.3 Company. Problems raised by employees help employees appeal against the results.% are solved without delay.63 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 64
Technological Innovation Agriculture
Building a Platform for Career Development Digital Learning Platform - New Hope Academy
As a digital learning platform that integrates employee learning training The total number of Total training hours:
We have always attached great importance to the development of Leadership Training System - Talent Plan management and knowledge accumulation New Hope Academy has employees who have taken
employees providing them with lifelong learning opportunities helping
realized the closed-loop of training management through functions offline training for the year:
them strengthen their professional skills and supporting and assisting 25916
them in realizing their potential. We cultivate and reserve talents for the New Talent 365 Plan such as research questionnaires course training exam and competition
Company's sustainable development providing diversified career paths management community communication and learning maps to improve 586
for different types of talents. The 3U model of talent promotion has been Talent is the foundation for enterprises to become strong the management efficiency of employee training and promote the
created and a growth platform for employees has been built to achieve and the decisive factor in competition. New Hope Liuhe competency of employees. Total person-time of online Study hours per
the goals of strugglers to progress achievers to be motivated and those provides a growth platform for newcomers. Over the past Account activation rate of the platform: 100 % learners for the year: employee:
who take responsibility to leap forward. 10 years the New Talent Training Camp has trained more
than 20000 school-recruited graduates to enhance their Fostering a learning-oriented organization with
job skills and enhance their soft power in the workplace. digital learning thinking: 357794 18.86
The platform integrates with the office system enabling users to log in
Employee Training Elite Talent Plan Active courses:conveniently and learn at any time and anywhere. By incorporating learning
into various aspects of work and combining training with practice it plays a
In 2022 New Hope Liuhe launched an activity of talent review covering core Through the online course of One-Step-Forward very influential role in building a learning-oriented organization. 5557
business talents across the entire industry to learn its "talent assets". The Management Ability Training Camp with the focus of
"self-examination" activity was conducted to strengthen the foundation of improving five core competencies of role transformation Establishing a visual and data-driven talent
the talent system. The Company focuses on core business management setting goals leading the team improving employee development path with digital tools:
positions and back-end business talents and makes systematic analysis performance and promoting their development we have Learning data is effectively transferred back to the human resources
and planning for talents. We have identified structure problems of talent assisted 7-8 level managers in the role transformation and system enabling the automatic generation of personal learning records
through the inventory template tools promoted organizational and team improved managers' management abilities. which plays a vital role in talent development and review as well as the
diagnosis at all levels and worked with the business department to develop In 2022 the Elite Talent Plan has trained 607people Company's digital transformation.human resource strategies. In addition we have built a hierarchical and and certified 45 instructors with a total learning time
classified inventory system evaluated talents based on the two dimensions of 6097 hours. The complete rate of the course was Achieve organizational knowledge management by
of "competence + potential" and used Sudoku to classify different talents to 78 digitalization as a carrier:% with a satisfaction rate of 96 %. The passing
allocate the talents in a lean way. In 2022 the Company's training focused
rate of the exam was 85 %. The platform provides employees a platform to share their wisdom co-
on four types of key talents delivering resources through two major create and co-build and co-share to create a learning and development
platforms - the co-construction of teacher and course platform & the digital ecosystem accumulate core knowledge assets and enhance organizational
Top Talent Plan The opening ceremony of the Executive Master of Business Administration learning platform – to train 16555 people across ten major projects. performance and core competitive advantages. (EMBA) Program for senior managers
Under the talent supply chain system great efforts have been made in An online training course was set up for middle
planning the training system and operating and delivering classified management personnel of 9-12 levels. It mainly consists
training for the Company's operation and management personnel. The of four modules of financial management market insight
Company devotes itself to the creation of online and offline learning Career Developmentand analysis personnel and team management and
platforms and the construction of internal and external training resources. digital thinking for general managers. While improving the The Company insists on prioritizing talent management in its operations providing employees with fair opportunities for promotion as well as
general managers' leadership it also helps them solve smooth development channels. We encourage employees to strengthen their employability and keep learning and improving. The Industrial
practical challenges and problems. Academy encourages employees to obtain job qualification certificates and participate in competency system certification to help blue-collar
workers build career development channels.Based on the structural characteristics of the talent of the industry we create a hierarchical and classified talent system for different 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 to
provide a stage for various talented employees to use their talents and achieve growth.For 20% of management-oriented talents For 80% of production system talents
By creating an internal training system we aim to enhance the By implementing management strategies such as skill certification
cultivation ability for internal talents focus on core positions and new employees entering the model and remuneration based on
key employees and design a "talent artery" t o create an advanced joint production we aim to improve employees' abilities to better
organization with a large number of talented staff. match their positions inspire their passions and build a mature
and stable front-line production team.Top Talent Plan65 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 66
Technological Innovation Agriculture
Enhancing Employee Care
New Hope Liuhe regards employees as family members
and actively promotes its culture of "running the
Company like an army a school and a family" . We create
an open and inclusive work atmosphere that promotes Providing Assistance
mutual progress continuously enhancing employee care
drawing the team closer to each other and improving We provide genuine care to employees to make them more
employees' sense of belonging so that each employee comfortable to work and live by implementing a series of actions
can fully feel the warmth of home. such as consolation activities offering assistance to employees who
has difficulties and caring for female employees.Balancing Work and Life Case Study Adhere to the concept of goodness to
build a mutually supportive family
We encourage employees to balance work and life Employee bookstore by Chengdu platform Women's Day activities by the Beijing platform office
actively organize diverse activities and help them
New Hope Liuhe established the Meihao Mutual Aid Association in
alternate work with rest to strengthen the Company's
2014 to promote its culture of "running the Company like an army
cohesion.a school and a family" and provide better care and assistance to
employees. In 2022 the 2022 New Hope Liuhe and Meihao Mutual Aid
Association Management Measures were formulated and a work team
consisting of company party committee members party affairs and
union cadres was established. With the concept of mutual assistance
it provides timely assistance and comfort to employees in the
association who have difficulties and gives them strength and power.Since the establishment of Meihao Mutual Aid Association
in 2014 the total number of families assisted:
Birthday party for the Xinliu team's employees in Qiandong 1815
settlement of pig industry Spring Festival activities by Chengdu Hope Food Company of the food industry
Relief expenditure:
RMB 16.2162 million
Membership amount in 2022: Membership:
RMB 6.788 million 47936
Total number of families Relief spending:
assisted throughout the
year: RMB 4.483 million
431
Mid-Autumn Festival and National Day entertainment activities by
Chongqing New Hope Company of the feed industry Fun sports meeting by Luxin Food Company of the poultry industry A donation by Meihao Mutual Aid Association67 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 68
Technological Innovation Agriculture
Occupational Health and Safety
We attach great importance to the safety and health of our
employees and strictly abide by relevant laws and regulations such
Investment on safety
as the Prevention and Control of Occupational Diseases and the production:
Implementation of the Regulations on Work-Related Injury Insurance.Adhering to the concept of safety production of "Hope together to keep RMB 89.83 million
safety together" we make clear to employees the risks of occupational
health and promote the establishment of occupational health and Safety training Total person-time of safety training:
safety management systems in various business sectors to ensure the coverage rate:
physical and mental health and life safety of employees. 100 879425 person-time%
Strengthen Production Safety Production accidents Total work-related injury rate (minor injuries): (minor injuries):
New Hope Liuhe has established a safety production management
%
system that covers all employees and has formulated and continued 16 0.015
to improve rules and regulations. The Company keeps improving
Number of deaths due
its safety production management department actively applying
to work:
for safety production management system certification and
implementing safety inspections and audit supervision management 0
to ensure the effective operation of the safety production management
system.Standardizing Management Systems Improving Organizational Construction Ensuring the Health and
The Company has implemented and continued to improve The Company has set up safety management institutions at all We are also establishing a dual prevention work mechanism to Safety of Employees
various rules and operating procedures for enterprise safety levels and staffed full-time and part-time safety management identify and mitigate risks building a safety education system
management and formulated systems of the Production Accident personnel to conduct training education and performance to elevate safety consciousness among our entire workforce. We The Company has formulated the Emergency Management Plan and
Management System of New Hope Liuhe Co. Ltd. the Production assessment. Executives at all levels take the lead and promote the place significant emphasis on long-term planning by setting up actively organized practical drills to respond to various emergency
Accident Handling Measures of New Hope Liuhe Co. Ltd. and construction of an occupational health management system in digital systems to drive the digital and smart evolution of safety events that may occur in production environmental protection
the Accountability Management System of New Hope Liuhe Co. their own management scope. management. occupational health and other aspects. We have established a sound
Ltd. The Company carries out internal control management for information database for social rescue forces emergency materials
safety production through a safety management mechanism that Actively Applying for Security Certification and equipment reserve and emergency experts and constructed
involves the entire process all aspects and all employees to prevent
The Company guides its branches and subsidiaries to actively a regional rapid rescue and treatment mechanism to enhance
various production accidents and ensure the health and safety of
apply for standardization certification of safety production. Both Emergency Management emergency management capabilities in an all-around manner. In
employees. In 2022 we revised management systems for safety
Chengdu Meihao and Hongya Meihao have obtained SO 45001 2022 the Company totally conducted 2300 emergency drills.production and accident accountability and newly formulated The Company has formulated the Emergency Management Plan and
Occupational Health and Safety Management Systems. 178
safety management measures for limited space operations.subsidiary companies have obtained Safety Standard Certificate actively organized practical drills to respond to various emergency Conducting Special Training
Level 3. All efforts are made to ensure the scientificity and events that may occur in production environmental protection The Company provides pre-job safety education and training to
Implementing Audit and Supervision effectiveness of the safety production management system. occupational health and other aspects. We have established a sound employees strengthens their traffic safety awareness requires them to
The Company's safety production management measures extend information database for social rescue forces emergency materials wear helmets and reflective vests and conducts activities on safety for
to all business operations subsidiaries and encompass every Developing Safety Production Plans and equipment reserve and emergency experts and constructed grassroots employees during the safety production month.employee. The execution of safety policies is closely interwoven with a regional rapid rescue and treatment mechanism to enhance
The Company has formulated a safety production plan. In the
audit policies. The Company persistently conducts supervision and emergency management capabilities in an all-around manner. In Protecting Employees' Health Rights and Interests
next reporting year we intend to further refine our various safety
inspections of safety production providing guidance and oversight 2022 the Company totally conducted 2300 emergency drills. The Company has established a labor union to protect the legitimate
production management systems and progressively establish
across various sectors to ensure effective implementation of safety rights and interests of employees provided standardized compensation
a four-tier system documentation. As we strive to enhance our
policies. Furthermore key performance indicators undergo rigorous for work-related accidents that have occurred and fully comforted and
safety management system we are pushing forward with a
evaluation on a quarterly basis. compensated related employees and their families.comprehensive safety responsibility system for all employees.69 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liiuhe Co.. Lttd.. 2022 Annuall Corrporratte 69 Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope 新希望六和股份有限公司 202S2o 年cii度all 企Re业sp社on会sii责bii任lliitty报 R告eporrtt 70Technological Innovation Agriculture 70
Repaying
Society
in Nurturing
Happiness with Hope
New Hope Liuhe values social benefits and practices corporate responsibilities.The Company spares no effort to stabilize production and guarantee the supply
to avoid food supply problems caused by price fluctuation risks. Meanwhile we
are committed to meeting the needs and expectations of the people to create a
high-quality public welfare brand bringing corporate support to the communities
and 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 Nations
Sustainable Development Goals
In May 2022 the "Hope and Wish Plan" was launched in Jinyang County
Liangshan Prefecture Sichuan Province.71 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 72
Technological Innovation Agriculture
Striving to Stabilize Production and Devoted to Charity
Guarantee the Supply
New Hope Liuhe has been actively engaged in charitable activities. Total charitable donations:
It has strived to create special public welfare brands continued RMB1.764 million
In 2022 under the influence of external factors such as market price Case Study
fluctuations and exchange rate risks some regions were in urgent Offering Set Menus Benefitting
to promote the public welfare projects of "Hope and Wish Plan" RMB 9.335 million for rural revitalization
the People and "Warm Winter Action" participated in emergency response
need of materials and resources. The company stabilized production and disaster relief work provided the love and warmth of New
and ensured food supply for Shanghai Chengdu and other areas. Hope Liuhe in poverty alleviation supporting the elderly and Meihao Food Kinghey and other brands have implemented a
orphans disaster relief and other aspects joined hands with social RMB million for RMB million
At the same time the relevant industrial sectors actively carried out community group purchase system providing "affordable set meals" 5.382 1.179 organizations to solve regional difficulties to continuously play a public education for environmental protection
price management established and improved the procurement delivered straight to consumers. They've unveiled the "Meihao demonstration role in public welfare.mechanism and clarified the contract pricing and definition of raw Companionship - Economical Meal Sets" which features a wide range
material procurement to avoid the potential impacts resulting from of products such as Meihao's succulent pork coriander meatballs
price fluctuation risks and ensure price stability from the source. select leg meat rib chops and chicken wings as well as other fresh Striving to Explore Brand RMB171000 for RMB 839000 for
and cooked pork and chicken food items. This initiative is aimed at overseas public welfare other categories of public welfare
providing the wider public with safe reliable sources of meat. Public Welfare
Ensuring Stable Food Supply
New Hope Liuhe actively builds a special public welfare platform
To ensure a stable food supply collaboration with food Case Study Gathering Multiple Forces and Rushing and develops special public welfare projects to carry out voluntary
supply channels including community chain supermarket to Ensure Supply for Shanghai public welfare activities for children and students in impoverished
terminals community group purchase platforms offline mountainous areas and people in poverty-stricken areas to
direct supply supermarkets and channel partners was In early April Shanghai suffered from a food shortage due to contribute the warmth and care of New Hope Liuhe to special
further expanded. external factors. Tianrun Integrated Breeding Service Co. Ltd. populations.(poultry industry) Hebei Kinghey Factory (food industry) and
Ensuring Stable Food Prices other companies responded quickly to dispatch production Hope and Wish Plan
We pledge not to chase profits or raise prices during critical and ensure product supply and transferred core members into 2022 marks the seventh year that New Hope Liuhe has launched
times and to make every effort to stabilize food prices. Shanghai preposition warehouses who worked day and night to the "Hope and Wish Plan". The Company and its subordinate units
support sorting loading and unloading and other food supply collected children's wish gifts such as a school bag a pair of shoes
work. Chengdu New Hope Group gave full play to its advantages a set of Han Chinese clothing and a ball suit. The Company's
A total of in supermarket logistics sending 22 trucks of food to Shanghai employees and socially caring people actively met the wishes of
1000 delivering more than 290 tons of food and effectively guaranteeing children from those areas sending the items as Children's Day tons of guaranteed food the supplies for supermarkets to ensure people's livelihood. In presents. Hope and Wish Plan
nearly April alone New Hope Liuhe supplied 12000 tons of poultry 3000 Assisting Fulfilling the June 1 wishes of
tons of pork and 1150 tons of deeply processed food to Shanghai
220000 items have been delivered to equivalent to one chicken and one duck for every Shanghai family 44 schools in old 2491c hildren across
helping Shanghai residents navigate through the difficult time.Chengdu's main urban area. revolutionary base areas the country
Warm Winter Action
Since 2014 when 40000 winter coats were donated to Tibetan
villages New Hope Liuhe's "Warm Winter Action" has been carried
out for nine consecutive years and has become a brand public Hope and Wish Plan
welfare activity of the Company.In 2022 New Hope Liuhe and Sichuan Yonghao Public-Benefit Charity
Foundation jointly launched the ninth season of "Warm Winter Action"
with the Party Committee of the Sichuan Branch of the Agricultural
Development Bank of China. They visited Luogan Village Meigu County
Liangshan Prefecture and passed on the idea of "changing customs
and traditions and cultivating new styles of civilization". They sent
dining tables and chairs to more than 600 villagers and 6000 cartons of
milk to kindergartens and primary schools with a total value of material
resources of nearly RMB 200000 bringing warmth to the Yi villagers in
Many groups responded actively and rushed to ensure supply for Shanghai the cold winter. Warm Winter Action73 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 74
Technological Innovation Agriculture
Supporting Emergency Response and Disaster Relief
When trouble occurs at one spot help comes from all Providing Disaster Relief Support
quarters. We carried forward the humanitarian spirit taking to the Cianjur Area West Java
an active part in the relief work in floods earthquakes and Province Indonesia
other major social disasters carrying out disaster relief and
In November an earthquake registering 5.6 on the
disaster area reconstruction and bringing warmth to the
Richter scale hit Cianjur district West Java province
affected people.Indonesia causing multiple casualties. New Hope
employees in Indonesia paid constant and close
attention to the conditions of the disaster area and
actively donated money and materials which were
immediately distributed to the victims by workers
Providing Assistance to Earthquake- dispatched by the group. They spared no effort to help
Stricken Area of Luding County the victims to overcome difficulties together.In September a 6.8-magnitude earthquake hit Luding
County Ganzi Prefecture Sichuan Province causing heavy
casualties and property losses. People all over the country
were concerned about the victims and all forces rushed
to rescue them. New Hope Liuhe together with Sichuan
Yonghao Public-Benefit Charity Foundation donated RMB
3.1 million of aid funds and materials to support disaster
relief and post-disaster reconstruction of the quake-hit Putting out the Wildfire in Chongqing
Luding county. Overnight
Meanwhile Meihao Food a sub-brand of New Hope Liuhe
urgently set up a special team to understand the material In the afternoon of August 21 a huge fire broke out in the mountains
needs of Luding who urgently made products organized a under the jurisdiction of Jieshi County Ba' nan District Chongqing
large number of urgently needed materials for the disaster City. To thwart the fire's potential spread to the populous regions
area orderly transported them to the destination. In this downhill the local government solicited volunteers for support
way the material needs of relief in Luding were met in a on the 23rd of August. Chongqing New Hope Feed Co. Ltd. based
timely manner. The first batch of 1100 donated food items in the Ba'nan district promptly rallied a group of 10 employees to
was worth RMB 230000 including canned luncheon meat partake in the voluntary campaign safeguarding the forest break.ham sausage and energy bars. The volunteers set up firelines along the isolation zone leveraging
fire extinguishers firefighting shovels sickles brooms and
borrowed pumps to mitigate the spreading flames. After a relentless
24-hour struggle by the volunteers the wildfire was brought under
Supporting Local Response to
Responding to Typhoon Chaba control by the morning of the 24
th and was completely extinguished
Heavy Rainfall by New Hope Liuhe
Bengal Division by the following morning.In June heavy rains hit many parts of Yingde City Guangdong Following the satisfactory completion of our mission we received
In June continuous rains in Sylhte caused flooding leaving Province causing urban waterlogging and flooding of farmland a message of thanks from the management of Chongqing
nine million people homeless. During the rainfall New and resulting in huge losses. Ruyuan Yao Autonomous County International Bio City where the company is situated: "The
Hope Liuhe arranged employees to provide feed for poultry Xinhao Agriculture and Animal Husbandry Co. Ltd. a subsidiary circumstances on the front lines were truly strenuous involving
farmers and supplied personnel and materials to help of New Hope Liuhe took the initiative to donate RMB 20000 to round-the-clock operations under high temperatures severe tasks
farmers transfer live poultry to different regions. After the Qiaotou Town and fully supported the people in the affected high difficulty and a certain degree of risk. New Hope Liuhe is an
rainfall the emergency team was immediately organized to towns and villages to overcome difficulties. This company enterprise of heroes boasting a team of courageous 'fighters' who
sort out the disaster situation of farmers and donate money devoted itself to post-disaster reconstruction contributing to are assuredly capable of fighting and emerging victorious. We solute
and materials. local economic recovery. to the New Hope Group!"75 Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry Employees Achieving Success Repaying Society in New Hope Liuhe Co. Ltd. 2022 Annual Corporate Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular and Pursuing Excellence through their growth Nurturing Happiness with Hope Social Responsibility Report 76
Technological Innovation Agriculture
Promoting Regional Development About this Report
New Hope Liuhe actively responds to the "going out" strategy The New Hope Liuhe Co. Ltd. 2022 Annual Corporate Social Responsibility Report (hereinafter referred to as "this report") is the 15th
and promotes the overseas breeding business. Based on the Cooperation in Educational Resources Corporate Social Responsibility Report publicly released by New Hope Liuhe Co. Ltd. This report aims to present the Company's
funds and resources it brings advanced breeding technology to practices and performance in operations environment and social domains during 2022 reflecting the Company's endeavors in industrial
New Hope Liuhe has created cooperation memorandums
overseas regions provides teaching creates jobs and helps the development industry collaboration and social responsibility.with six schools in the south and north of Myanmar launched
surrounding regions of overseas divisions achieve sustainable
scholarship and internship programs with Yezing University
development.of Animal Husbandry and Veterinary Medicine provided
Business Localization scholarships of about RMB 20000 to 30 students every
year and launched annual internship programs with Moby Timeframe
A local talent training strategy is implemented to create University of Science and Technology and Dongyu University
multiple jobs and encourage local talents to take up critical of Science and Technology. This report covers the period from January 1 2022 to December 31 2022. Certain descriptions and data may be extended beyond this
positions in the company. New Hope Liuhe focuses on the development of local talent timeframe as deemed appropriate.The Egyptian division has directly created nearly 900 jobs in the local and has established long-term talent cooperation with Cairo
area enabling the local breeding to be 85 million birds per year University Alexandria University the University of Sadat City
and indirectly creating over 30.000 jobs. 35 local officials have been Beni-Suef University Suez Canal University and Kafrelsheikh Report Scope
promoted accumulatively and the proportion of cadres from local University. Every year the Company sets up internship
areas has increased year by year. programs providing many positions in veterinary medicine
he scope of this report is consistent with the Annual Report. Unless specifically stated otherwise all currencies referred to in this report are in RMB.animal protection sales quality control laboratory testing
Standardized Operation Manual for the Development of Local
breeding and administration for local college students.New Raw Materials Development Procedures for Imported Basis for Preparation
New Raw Materials and other local procurement policies
and norms are formulated to drive local development and Carrying out Public Welfare Donations The Sustainability Reporting Standards from the Global Sustainability Standards Board (GRI Standards 2021 Edition)
enhance the competitiveness and influence of the enterprise
The ISO 26000: Guidance on Social Responsibility (2010) from the International Organization for Standardization
in surrounding areas. The Myanmar division donated 10 million Kyat to Huade School
a Chinese primary school in Yangon for the construction of National Standard Guidance on Social Responsibility Reporting (GB/T 36001-2015)
Community Impact Assessment the campus in 2019 and another 3 million Kyat in 2022 for the
Guidelines for Corporate Social Responsibility of Shenzhen Stock Exchange Listed Companies
construction of a new school building.Before setting up divisions overseas the Company evaluates
the development of overseas business understands the policy Indonesian Agriculture and Animal Husbandry Company
support and carries out in-depth market research. Before the donates stationery and eggs for impoverished students of Terminology
construction and operation of the company New Hope Liuhe schools near the company.carefully considers the location and carries out an environmental The Egyptian division participated in the large-scale Ramadan 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.impact assessment. All the overseas businesses of the company charity event held by the Chinese Embassy and Chamber
pass the environmental impact assessment review. At the same of Commerce with the theme of "Friendship Growth and
time the potential social impact of the company is understood Development". It was larger than any other event ever been Data Clarification
and communication with residents in surrounding communities held. More than 30 Chinese enterprises in Egypt participated
is carried out when necessary to ensure that the impact of the in the activity and raise a total of 1 million Egyptian pounds to The sources of data used in this report include publicly available government data internal company statistical reports and third-party
company's operation on surrounding communities is minimized. help the local poverty-stricken people. documents and reports. Financial data disclosed in this report if inconsistent with the Annual Report 2022 of New Hope Liuhe Co. Ltd. will
follow the Annual Report as the final reference.Report Access
Both Chinese and English versions of this report are available in digital and printed formats. The digital version can be accessed and
downloaded from the information disclosure website (www.cninfo.com.cn) designated by the Shenzhen Stock Exchange or our company's
website (http://www.newhopeliuhe.com). If you have any questions or suggestions concerning this report please feel free to email us at
000876@newhope.cn.
The Egyptian division cooperates The Myanmar division provides The Indonesian division provides The Egyptian division
with local universities donations for Chinese primary supplies to needy students participates in the Ramadan
schools charity activity77 New Hope Liuhe Co. Ltd. 2022 Annual Corporate Responsibility Management Social Responsibility Report 78
Indicator Index Table
Reporting framework Benchmarking with reference to GRI standards
Message from the Chairwoman 2-22
Company profile 2-1/2-6/201-1
About New
Hope Liuhe Our 2022 2-28/201-1
Corporate Governance 2-9/2-10/2-11/2-12/2-27/405-1
ESG Strategic Planning 2-22
Responsibility ESG Organizational Structure 2-9/2-12/2-13/2-14
Management ESG issue management 3-1/3-2
Stakeholder Communication 2-29
Food Saving Special Action: Comprehensive 2-6/3-3/203-2/416-1
Responsibility Focus Protection of Food Security
Five-Five Project: Continual Support for Rural
Revitalization 3-3/203-1/203-2/413-1
Building a Resilient Foundation through Party
Leadership ——
Corporate
Governance: Striving Strengthening Risk Management 205-1
to Uphold Long-
Termism Adherence to Business Ethics 2-25/2-26/3-3/205-2/205-3/206-1
Growing Together with Partners 2-6/3-3/308-1/308-2/414-1/414-2
Enterprise for Strengthening Food Safety 2-23/2-25/3-3/416-1/416-2
People's Well-being:
Safeguarding Life Enhancing Nutritional Value 3-3/416-1
with Life Improving Service Quality 3-3/417-1/417-2/417-3/418-1
Exploring the Driving Development through Technology 2-28
Development of
Smart Urban and
Rural Areas through Upgrading Smart Farms 2-6/416-1
Technological
Innovation Creating A Digital Enterprise 2-6/416-1
Improving Environmental Management 2-18/307-1
Developing Eco-Friendly Animal Husbandry 201-2/3-3/
Green Industry:
Responding to Climate Change 201-2/3-3/302-1/302-3/302-4/302-5/305-1/305-Sustaining Nature 2/305-3/305-4/305-5
through Circular
Agriculture Water Resource Management 3-3/303-1/303-2/303-3
Reduction of Waste Disposal 2-25/3-3/306-1/306-2/306-3/306-4/306-5
Ecological Environment Protection 2-25/3-3/304-1/304-2
Protecting Employees' Rights and Interests 2-7/2-19/2-23/3-3/401-1/401-2/405-1/406-1/408-
Employees 1/409-1
Achieving Success Building a Platform for Career Development 3-3/404-1/404-2
and Pursuing
Excellence through Enhancing Employee Care 401-2
their growth
Occupational Health and Safety 3-3/403-1/403-2/403-3/403-5/403-6/403-7/403-8/403-9
Striving to Stabilize Production and Guarantee
Repaying Society in the Supply
Nurturing Happiness
with Hope Devoted to Charity 413-1
Promoting Regional Development 3-3/203-1/203-2/413-1
About this Report 1/2-2/2-3/2-4
Indicator Index Table ——Corporate Governance Enterprise for People's Well-being Exploring the Development of Green Industry
Striving to Uphold Long-Termism Safeguarding Life with Life Smart Urban and Rural Areas through Sustaining Nature through Circular
Technological Innovation Agriculture
Follow Us
For More Information
Address: Chengdu office address: No.376 Jinshi Road Jinjiang Industrial Park Chengdu
Sichuan Province
Beijing office address: 11F Block AT3 Wangjing SOHO No.10Wangjing Street
Chaoyang District Beijing
Tel: (86)28 -8200 0876 / 8595 0011 (86)10-5329 9899
Fax: (86)28-8595 0022
E-mail: 000876@newhope.cn