CONTENTS

Opening

Message from the Chair 01

About Us 02

Sustainable Development Management 03

Materiality Assessment of ESG Issues 05

Stakeholder Communication 08

Responsibility Focus: 30 Years of the Guangcai Program 09

Main body Building a Strong Foundation Advancing Inclusive Nutrition

for Growth through Effective and Health through Premium

Governance Products

Party Building Efforts 13 Nutrition and Health R&D 31

Corporate Governance 14 Stringent Quality and Safety Control 36

Risk and Compliance Management 19 Improving Service Quality 42

Business Ethics 23 Digital Empowerment 45

Supply Chain Management 26

Nurturing Natural Co-creating Value to Achieve

Ecosystems through Green Common Prosperity

Industry Practices

Sustainable Agriculture 51 Empowering Employees 67

Sustainable Operations 53 Empowering Farmers 81

Addressing Climate Change 57 Community Engagement 83

Land Use and Biodiversity Protection 63

Closing

About This Report 90

Key Performance Table 91

Indicator Index Table 93

New Hope Liuhe’s integrated pig farm constructed and operated in VietnamMessage from the Chair New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Message from the Chair

Upholding Unwavering Responsibility to Embrace New-Era Challenges About Us

delivered same-day with high reliability. In 2024 we recorded New Hope Liuhe Co. Ltd. (SZ.000876) the largest tangible industrial segment of New Hope Group was listed on the Shenzhen Stock Exchange in

zero product recalls or adverse product events. With superior 1998. Rooted in the agricultural and animal husbandry sector the Company focuses on developing feed production pig breeding and slaughtering

products and services we continually enhance the sense of gain operations. As a key leader in agricultural industrialization we harness our influence to integrate global resources and establish a safe healthy food

happiness and security for our customers and consumers. industry value chain. With operations spanning China and 15 other countries including Vietnam the Philippines Indonesia Singapore and Egypt we

are committed to fulfilling people's aspirations for a better life.Lucid waters and lush mountains embody our responsibility to

build a more beautiful China. We adhere to the development concept Corporate Culture

that "lucid waters and lush mountains are invaluable assets"and view

the relationship between economic development and environmental

protection from a scientific perspective. We vigorously promote a circular

agriculture model to reduce the environmental impact of livestock Profiting farmers and benefiting We aim to become a globally trusted supplier and integrated service provider

waste. In 2024 we produced 104800 tons of fermented organic fertilizer Mission food consumers of high-quality protein and food by offering safe reliable and demand-

recycled 15.75 million tons of treated water for farmland use and oriented products and services.harvested 2.58 million kilograms of fresh fruits and vegetables resulting

in a carbon sequestration of approximately 94500 tons of CO2 equivalent. We endeavor to leverage our influence as a key leading enterprise in

We continue to make efficient use of raw grain feed and energy through agricultural industrialization integrate global resources build a safe and

improved production management and technological upgrades. In Vision Becoming a leader in farming healthy food industry chain support farmers in increasing their income and

total 667300 tons of grain were conserved through scientific measures and food industries continue making greater contributions to meeting consumer demand for safe

The year 2024 is a pivotal milestone in achieving the goals of China’s 14th demonstrating our commitment to safeguarding food security and actively meat products and promoting social progress and development.Five-Year Plan. The steady development of new quality productive forces addressing climate change. In the process of green transformation we

has become a major driver of the country’s economic transformation have achieved both qualitative and quantitative growth contributing to

helping to steer the national economy toward higher quality greater the harmonious coexistence of humanity and nature.efficiency enhanced equity improved sustainability and stronger

security. At this pivotal moment we remain true to our corporate mission Our commitment to people’s well-being reflects the essence of our Industry Position

of "benefiting farmers and serving consumers." We are committed to social responsibility. As we look back on 30 years of dedication to the

embedding sustainability more deeply into every facet of business Guangcai Program we continue to serve as a trusted force in poverty

decision-making and operational management working hand in hand alleviation. In support of China’s rural revitalization strategy we have New Hope Group Co. Ltd. New Hope Liuhe Co. Ltd.with stakeholders across the value chain to cultivate a resilient ecosystem pursued a holistic model that combines industrial investment technical

for sustainable development and generate integrated economic support talent development and job creation. In 2024 alone this Ranked 378th in the 2024 Fortune Global 500. Ranked 1st among China's Top 20 Agricultural Enterprises environmental and social value for society. approach helped contract farmers increase their earnings by over RMB in the Feed Industry.

3 billion through pig farming. We also provided services to more than Ranked 95th in the 2024 China Top 500 Enterprises. Ranked 2nd among China's Top 20 Agricultural Enterprises

212700 small and medium-sized agricultural enterprises contributing

Steady progress is our firm belief in laying a solid foundation Ranked 19th in the 2024 China Top 500 Private Enterprises.in the Animal Husbandry Industry.corporate strength toward the vision of common prosperity. We Recognized as a Leading Enterprise in the Feed Industry.for long-term development. In the face of an increasingly complex place great importance on talent development and strive to foster an Ranked 2nd in the 2024 China Top 500 Agricultural Listed in the Vitality Top 100 of China's Private Listed

external environment we have integrated sustainability into our inclusive equitable and harmonious workplace environment for our Enterprises. Companies Brand Value Ranking.corporate culture development strategy and risk management employees. We extend care to our employees through initiatives such Ranked 1st in the 2024 Sichuan Top 100 Enterprises. Recipient of 7 second prizes of the National Science and framework. We continue to explore the development of a sound as Wonderland of New Hope Liuhe and the Good Mutual Assistance Technology Progress Award leading the industry.effective corporate governance system with New Hope characteristics. Fund and offer training programs for management and professional

We uphold the Board’s overall leadership in ESG and strive to enhance roles including reserve cadres and veterinarians to support their

the independence and professionalism of the Board’s decision- growth and career development. During the devastation caused by

making in accordance with the law supporting the Company’s healthy a super typhoon in Southeast Asia the Company’s branches in the

development and high-quality stable growth through sound corporate Philippines Vietnam and Bangladesh assisted affected farmers in

governance. We adhere to business ethics and maintain a fair and getting back to work and rebuilding their lives. Domestically the Hope

transparent market order. Through collaboration with stakeholders and Wish Plan fulfilled the wishes of students for the 8th consecutive

we strive to create a sustainable future in economic development and year and the poverty-relief pig farm in the deep mountains celebrated Operating Performance

business practices. its 6th year of delivering dividends. The Warm Winter Campaign

entered its 11th year in Xizang once again bringing hope and warmth

Quality is the solid footprint of our steadfast commitment to our to remote villages on the plateau.original mission. We remain focused on technological innovation

centered on our industries and products. In 2024 we were Total assets:Guided by Xi J inping Thought on Soc ia l i sm with Chinese Operating revenue:

approved to establ ish a postdoctoral research station and Characteristics for a New Era New Hope Liuhe will continue to align

actively applied for the establishment of the National Feed Grain its future development with national strategies and actively respond RMB 117.915 billion RMB 103.062 billion

Technology Innovation Center. Our biological breeding efforts to the evolving industrial landscape shaped by emerging technologies

achieved key breakthroughs with multiple core technologies and new global dynamics. Embracing the wartime spirit of "stand

now independently developed and fully controllable. Innovation firm in belief endure with passion" we will empower our people and

continues to be a vital driving force enabling us to deliver strengthen collaboration across the entire value chain to build a deeply

safer more nutrit ious and healthier products. We leverage integrated community of shared destiny. With an unwavering mission Feed sales volume: Pig output:

digitalization to enhance quality and efficiency strictly adhere remarkable resilience and a steadfast sense of responsibility cultivated

to quality control standards and steadily expand our antibiotic- over the past 43 years we stand ready to embrace the opportunities

free certification. Our shipments of live pigs to Hong Kong are 25.96 million tons 16.5249 million headsand challenges of a new era.Sustainable Development Management New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Sustainable Development Management Tree of Hope ESG Strategy

Strategic Sustainable

Dimensions Development Goals Key Issues Our PerformanceSustainable Development Governance

Human Capital Total number of employees: 41327 with 6325 new hires.New Hope Liuhe has established a comprehensive three-tier sustainable development management structure led by the Board of Directors. This Development Proportion of women in management positions: 14.12%

structure encompasses the supervisory management and executive bodies to effectively implement the Company's ESG and sustainable development Average training hours per employee: 28.65Deep Roots -

initiatives. During the reporting period the Company conducted specialized sustainable development training for middle and senior leadership. Strengthening

The training covered the Shenzhen Stock Exchange's sustainability guidelines ESG rating benchmarking analysis and ESG management capability Comprehensive audits conducted: 126the Foundation

enhancement. This program aimed to improve leadership's understanding of the Company's ESG management strategies and operations promoting Corporate Governance Coverage rate of anti-corruption training for directors and

efficient implementation of ESG initiatives. Additionally the Board of Directors convened special meetings to review and confirm matters related to and Business Ethics middle and senior management: 100%

important ESG issues materiality assessment of topics and achievement of ESG objectives. Sunshine Culture Festival events organized: 24 engaging

3786 participants

Attendances in quality training: 4297

Organizational Structure Responsibilities Product Responsibility Product recall incidents and negative product events: 0

Customer complaint handling rate: 100%

The Board approves the Company's medium and long-term development plans corporate strategy

Board of Directors ESG vision and objectives ESG planning and major ESG matters. It also assumes responsibility for

their effectiveness. Digitalization and R&D investment: RMB 270.2823 million

Technological Scientific and technological innovation platforms

The This committee guides and reviews the Company's overall ESG philosophy management performance Innovation maintained at various levels: 79

Supervisory Strategy and targets implementation plans major projects and identification and prioritization of ESG issues. Cumulative valid patents: 1426

Bodies Sustainable It monitors and reviews progress towards goals provides recommendations for actions needed to

Development achieve objectives and reports to the Board of Directors. Sustainable Total number of qualified suppliers: 4696

Committee The committee reviews and approves the Company's annual sustainability report ensuring alignment Flourishing Supply Percentage of suppliers assessed: 100%

with expectations and requirements of investors regulators and other stakeholders. Branches Chain Number of suppliers that proposed and completed

- Driving improvement measures: 21

Development

This group is led by the Board Secretary with members comprising senior management from ESG- Total investment in environmental protection (excluding

The ESG related functional departments. depreciation): RMB 152.6553 million

Management Management Ecological Farming Fermented manure fertilizer produced: 104800 tons;

Body and Supervisory The group formulates ESG strategy identifies and manages ESG opportunities and risks. It determines Reclaimed water for irrigation: 15.7532 million tons

Group the materiality of ESG matters incorporates them into operational considerations sets ESG objectives Biological carbon sequestration through nutrient recycling

and plans and regularly reviews ESG performance. land: approximately 94500 tons of CO2 equivalent

This group supports the ESG Management and Supervisory Group in executing its responsibilities

ESG Working including organizing ESG objectives strategic planning and annual work plans. It coordinates ESG Photovoltaic power generation: 11.7468 million kWh

Group risk and opportunity assessments and ESG issue identification develops action plans with various Climate Participated in carbon asset development providing

The functional departments branches and subsidiaries monitors their progress and manages ESG- Change 182500 tons of carbon credits with approximately 160000

Executive related information disclosure. Response tons pending issuance.Bodies Greenhouse gas emission intensity: 11.59 tons of CO2

Functional These bodies are composed of relevant personnel from ESG-related functional departments equivalent/RMB 1 million revenue

Departments/ branches and subsidiaries.Branches and They implement specific ESG-related work develop ESG-specific plans manage ESG-related

Subsidiaries Launched M-NRC animal vitamin and trace element nutrition indicators and collect and report ESG information. standards introducing the Xiwangxin product series.Promoting Received second prize in the Qingdao Science and

Nutrition Technology Progress Award for the functional fiber-

Accessibility

Sustainable Development Strategy and Progress regulated intestinal health nutrition program.Lush Leaves Secured antibiotic-free certification for 60% of pig

- External slaughterhouses.Rooted in our cultural concept of "stand firm in belief endure with passion" we have formulated the New Hope Liuhe "Tree of Hope" ESG strategy. Empowerment

This strategy guides the integration of ESG principles throughout our business decisions and operations. By strengthening our foundation and driving

development we aim to empower external stakeholders enhance our risk prevention capabilities and value creation potential and strive to become a Established partnerships with over 3400 family farms

trustworthy force. Our ultimate goal is to collaboratively build create and share a hopeful and promising future with all stakeholders. Community across 23 provinces generating RMB 3 billion in income

Engagement and for farmers.Development Conserved 667300 tons of grain equivalent to the yield

from 1.33 million mu of land.Honors & Recognitions

2024 Best Practice Case for Listed Companies 2024 Rural Revitalization Leading Brand in Social 2024 Most Socially Responsible Listed

in Sustainable Development 2024 Listed Company ESG Value Transmission AwardResponsibility Company Award

China Agricultural Film and Television Center

China Association for Public Companies Rural Revitalization Empowerment Program National Business Daily Easy-board Value Online

Organizing CommitteeMateriality Assessment of ESG Issues New Hope Liuhe Co. Ltd. 2024 Sustainability Report

* The positive and negative impacts of each issue were integrated into the dimension of impact materiality and their level of impact was assessed

Materiality Assessment of ESG Issues based on the survey results.Double Materiality analysis high Materiality Matrix of New Hope Liuhe

To accurately identify and assess material issues New Hope Liuhe conducted a double materiality assessment in 2024 based on sustainability

disclosure standards including the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange— Sustainability Report (For

Trial Implementation) . The assessment incorporated input from various stakeholders to determine key material issues which are specifically disclosed Product quality and safety

and addressed in this report. The Company will continue to enhance its sustainability management practices to better meet stakeholder expectations

and concerns.Production safety and occupational health

Environmental

Dual Materiality Issues Assessment management system Pollution and waste

Eco-circular farming management

Customer service management

Based on an analysis of internal and external development trends the Company developed a list

Identification of

Step 1 of sustainability issues and identified 25 material issues including both general and industry-ESG Issues specific issues. Rural revitalization and social contributions Responsible marketing Supply chain management

Stakeholder Following the principle of double materiality the Company carried out both impact materiality Employee rights and benefits

Step 2 Communication and assessments and financial materiality assessments. Key stakeholders engaged in this process

Materiality Analysis include the Board of Directors senior management employees customers suppliers investors Corporate governance

regulatory authorities the media and the public. Compliance and risk management

Based on the survey results a materiality matrix was developed using the dual dimensions Industrial cooperation and development

of impact materiality and financial materiality. The prioritization of sustainability issues was

Step 3 Issue Validation and Information and data securityfinalized through a review and validation process conducted by the Strategy and Sustainable Intellectual property protection

Reporting Development Committee of the Board of Directors together with external sustainability experts. Water use and management

Key material issues are prominently disclosed in this report with a focus on their governance

strategic alignment risk and opportunity management as well as relevant indicators and targets. Community relations Business ethics and anti-corruptionProtection of investor

management rights and interests

* The potential positive impacts of each topic were assessed based on two factors: the likelihood of occurrence and the magnitude of impact Employee training and development

considering both the scale and scope of the impact. The potential negative impacts were evaluated using two corresponding factors: the likelihood of

occurrence and the severity of impact taking into account the scale scope and the irreversibility of the impact.Comparison of Positive and Negative Impacts of New Hope Liuhe’s Material Issues Positive impact Negative impact

Climate change and energy management

Rural revitalization and social contributions Ensuring Animal Welfare

Community relations management

Industrial cooperation and development Digital transformation

Employee training and development

Employee rights and benefits

Production safety and occupational health R&D innovation and technology ethics

Biodiversity conservation

Supply chain management

Information and data security

Responsible marketing Governance dimension

Customer service management Environmental dimension

Product quality and safety

Social dimension

Ensuring animal welfare

Intellectual property protection

low

R&D innovation and technology ethics Significance of Impact on the Company's Financial Performance high

Biodiversity conservation

Eco-circular farming

Pollution and waste management Risk and Opportunity Analysis of Material Issues

Water use and management

The Company has conducted a comprehensive analysis of its key sustainability topics reviewing the scope and duration of their impacts as well as

Climate change and energy management associated risks and opportunities. Based on the findings the Company has developed targeted response strategies to effectively mitigate risks and

Environmental management system seize opportunities thereby advancing its long-term sustainable development.Digital transformation

Protection of investor rights and interests

Business ethics and anti-corruption

Corporate governance

Compliance and risk management

16151413121110987654321012345678910111213141516

Significance of Impact on Economic Environmental and Social SustainabilityMateriality Assessment of ESG Issues New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Stakeholder Communication

Dual Scope of Impact

Materiality Impact Risks and Opportunities Response Strategy New Hope Liuhe places great importance on communication with its stakeholders. Based on its daily operations management practices material issue Upstream Company Downstream Communities

Issues of the Value Operations of the Value Duration categories and various influencing factors the Company identifies and prioritizes internal and external stakeholders with significant impact. Through Chain Chain diverse communication channels it actively engages to understand stakeholder expectations and concerns and responds in a timely and proactive

Establishing a sound quality management Develop a comprehensive food safety management manner to achieve mutual benefit and harmonious development with all parties.system for feed production and pig system to cover the entire value chain including

farming processes helps ensure the raw material sourcing production control quality

Product Stakeholders Issues of Concern Communication Channelsdelivery of high-quality products to inspection product and sales management and

quality Long customers and contributes to expanding personnel training.and √ √ √ √ term market share. Establish a digital quality control platform to Compliance and risk management Government meetings

safety Quality issues may lead to significant enable full-process monitoring and strengthen Pollution and waste management Special reports

economic losses including potential product traceability.product recalls. Government Water use and management On-site visitsFor more information please refer to the

"Stringent Quality and Safety Control" section. and Climate change and energy management Information delivery

Deterioration in customer relationships Continue to enhance service quality by enriching Regulatory Biodiversity conservation

may lead to customer attrition thereby pre-sale in-sale and after-sale service offerings Bodies Rural revitalization and social contributions

a f fe c t i n g t h e C o m p a n y ' s m a r ke t implement tiered and categorized customer

Customer performance. management and ensure smooth communication Production safety and occupational health

service √ √ Long channels. Product quality and safety

management term Strong customer relationships support Conduct regular customer satisfaction surveys

b u s i n e s s g row t h a n d c re a te n e w establish a complaint handling process and Community relations management

commercial opportunities respond promptly to customer feedback.For more information please refer to the Corporate governance Information disclosure

"Improving Service Quality" section.Shareholders Protection of investor rights and interests General meeting of shareholders

ESG-related risks in the supply chain Improve supply chain management by incorporating

may lead to supply chain instability and Business ethics and anti-corruption Results briefingESG factors into supplier evaluation and selection. &

disrupt the Company’s production and Investors R&D innovation and technology ethics Investor communication platform

operations.Medium Improve the supply chain risk analysis model and Supply evaluation mechanisms and consistently identify Customer service management Investor research and communication

to Inadequate sustainability due diligence in chain √ √ and monitor risks in the procurement process.long the supply chain may lead to issues such management as human rights violations and negative

term Promote sustainable development practices Product quality and safetyenvironmental impacts potential ly Daily operational communicationamong suppliers.damaging the Company's social image Intellectual property protection Official communication channels

and reputation. For more information please refer to the "Supply Responsible marketing

Chain Management" section. After-sales service and feedback

Customers Customer service management Customer satisfaction survey

Violations of employees’ legitimate rights Continuously improve internal management Environmental management system

and human rights may reduce morale systems to uphold employee rights covering areas

and productivity ultimately affecting the such as ethical conduct prevention of violence Compliance and risk management

Company’s market competitiveness and and conflict prohibition of forced labor fair

Employee Information and data securityeconomic performance. employment and diversity anti-discrimination

rights Short working hours and leave policies.and √ √ term Non-compliance with labor laws and In addition to statutory benefits provide diverse

regulations may expose the Company to

benefits supplementary benefits a wide range of employee Supply chain managementfines and legal proceedings damaging its Strategic cooperationactivities and timely care and assistance programs

social image. Digital transformationto enhance employee well-being and satisfaction. Suppliers Thematic Training

Business ethics and anti-corruption

For more information please refer to the & Market research

"Employee Rights and Well-being" section. Partners Compliance and risk management Special meetings

Industrial cooperation and development

Non-compliance and inadequate risk Coordinate risk management under the leadership Industry exchanges

management may result in financial of the Risk Control Committee under the Board Information and data security

losses legal disputes and reputational of Directors establish a "three lines of defense"

Compliance Short risks for the Company. framework strengthen special audits and enhance

and to the standardization and effectiveness of risk Employee training and development Official WeChat of the Company

risk √ √ √ √ control.medium Strengthen the tax management system and Employee rights and benefits Workers' Congressmanagement term continuously enhance tax compliance capabilities. Employees Production safety and occupational health Employee activities

For more information please refer to the "Risk Compliance and risk management

and Compliance Management" section. Business ethics and anti-corruption

Information and data breaches may Improve the information security management

violate relevant laws and regulations system and strengthen data contro l and Product quality and safety Community communication

resulting in compliance risks financial cybersecurity protection.losses such as fines and infringement of

Information Short customer rights thereby undermining Standardize information confidentiality practices

Ensuring animal welfare Media interaction

and customer trust in the Company. and enhance employee awareness of information Community Pollution and waste management Industry forumto

√ √ √ security.data medium and Eco-circular farming Information disclosure

security Ensuring information and data security term helps strengthen the relationship between For more information please refer to the Public Biodiversity conservation Public welfare volunteer activities

the Company and its customers. "Information Security and Privacy Protection"

section. Rural revitalization and social contributions

Community relations management

Note: Duration of impact is categorized as short term (1–3 years) medium term (3–5 years) and long term (over 5 years).Responsibility Focus New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Tekoujiagu Village in Zhaojue County Liangshan Prefecture Sichuan Province stands as an exemplary project of New Hope Liuhe's "4+N" precision

Responsibility Focus: poverty alleviation model. In this context "4" represents the Zhaojue County People's Government the Sichuan Branch of the People's Bank of China

New Hope Liuhe and the village collective economy (cooperative). The "N" symbolizes the registered poor households in the village. Under this

30 Years of the Guangcai Program – Sustained model the government and bank provide funds and subsidized loans to villagers; the Company offers comprehensive services including piglets feed technology and sales while also bearing disease and market risks. Villagers in turn receive dividends from their shares and can earn wages through

their labor. The project was completed and commenced operations in April 2018 emerging as one of the most advanced breeding bases in Zhaojue

Hope for Rural Revitalization County and the broader Liangshan Prefecture at that time. By the end of 2024 the project had sent 16000 pigs to market disbursed RMB 5.17 million in contract breeding fees distributed RMB 1.39 million in dividends benefited 1130 villagers and trained 12 local technicians constantly driving

economic growth and income improvement for the villagers.From 1994 to 2024 the Guangcai Program initiated with the participation of New Hope Liuhe has spanned three decades of development. This social Building on this successful pilot New Hope Liuhe has propagated the Zhaojue Model of breeding-based poverty alleviation to its branches and

initiative was launched by private entrepreneurs in response to the National "Eight-Seven Poverty Alleviation Plan" bearing the historical mission of subsidiaries nationwide. The Company actively explores a multidimensional poverty alleviation model that integrates "modern agriculture + precision

"those who become prosperous first helping those who lag behind." As one of the program’s original initiators New Hope Group has consistently poverty alleviation + ecological environmental protection." In economically challenged counties such as Shibing in Guizhou Xiajin in Shandong and

upheld the principle of industrial poverty alleviation that balances social responsibility and profitability seamlessly integrating corporate development Yijun in Shaanxi New Hope Liuhe has invested in establishing pig farms integrating breeding and promotion. It adopts innovative organizational

with national strategies. Keeping pace with the times the Company has continuously explored and innovated its approaches—shifting from one-off methods such as "large farms mentoring small farms" and "company + cooperative + family farm" to encourage small and medium-sized specialized

project-based support to integrated assistance across entire industrial chains; from simple investment to a more comprehensive model combining cooperatives and family farms within the county to engage in standardized large-scale and regulated pig breeding. This approach promotes self-

investment branding talent cultivation and information-sharing; and from isolated individual efforts to joint initiatives with strategic partners. These reliance in breeding and contract farming expanding the scale of operations and achieving mutual benefits. Even after fulfilling its primary poverty

evolving practices have kept the Guangcai Program vibrant and impactful standing as a testament to the synergy between private enterprise and alleviation objectives the initiative continues to generate economic benefits for the local communities. In 2024 the Shibing and Nayong projects in

national development. Guizhou managed by New Hope Liuhe distributed substantial dividends of RMB 2.48 million and RMB 605400 respectively.In the contemporary era advancing the Guangcai Program increasingly relies on nurturing multi-skilled sustainable developers i.e. a new generation

of farmers. Since 2018 New Hope Liuhe has spearheaded the 100000 Green Collar New Farmer Training Plan. This initiative harnesses the Company's

industrial expertise and commitment to public welfare to cultivate a cohort of new-age farmers who love agriculture understand technology and excel

in management. This effort significantly contributes to rural talent development and overall rural revitalization.The evolution from the Guangcai industrial poverty alleviation model to the "1+1" precision poverty alleviation model and further to long-term

empowerment through leading industry chains digital capabilities and talent cultivation demonstrates New Hope Liuhe's commitment to transforming

poverty alleviation approaches. The Company has shifted from temporary aid provision to sustainable capacity building emerging as a pivotal force in

the ongoing promotion of rural revitalization.Preserving the Founding Vision Perpetuating the Guangcai Program

As China enters its 14th Five-Year Plan period New Hope Liuhe has proactively embraced the Group's Five-Five Project for rural revitalization. This

comprehensive initiative focuses on five key areas: improving rural infrastructure constructing community facilities enhancing village cleanliness

beautifying rural environments and fostering new developments in agriculture and village economies. In 2021 the Company in partnership with the

National School of Development at Peking University launched the Village Head Course public welfare training initiative. This project aims to cultivate

Preparatory meeting of the China Guangcai Program Promotion The first factory of China's Guangcai Program - Xichang Hope 500 rural grassroots governance leaders over a five-year span. In the four years since its inception the program has attracted over 3000 village heads

Committee Feed Factory to participate in the selection process with more than 400 trainees successfully completing the curriculum. Its influence has rippled through over 3000

villages establishing a scientific practical and replicable model for nurturing rural grassroots management talent.Sowing Hope Igniting the Guangcai Program The 30-year milestone of the Guangcai Program not only signifies a remarkable achievement but also heralds a new era of opportunity. Moving

forward New Hope Liuhe is committed to serving as a steadfast practitioner of common prosperity through its unwavering dedication to agricultural

In the inaugural year of the Guangcai Program New Hope Liuhe invested in and constructed the Xichang Hope Feed Factory in Xichang City Liangshan development. Driven by a deep-seated passion for industry-led national progress it will act as a catalyst for rural revitalization and function as an

Prefecture Sichuan Province. This initiative brought modern agricultural technology to the impoverished Greater Liangshan area. Over three decades it ambassador of the Guangcai Program embodying an open and inclusive ethos. These endeavors will continue to uphold the Company's core mission

has empowered more than 20000 farmers to increase their income and achieve prosperity with an average annual increase exceeding RMB 3000 per of "benefiting farmers and serving consumers."

household. Building on this success the Group invested RMB 2.6 billion to establish over 40 similar poverty alleviation factories across regions including

Xinjiang Gansu Ningxia Sichuan Chongqing Guizhou Hubei Hunan Jiangxi Hainan Henan Shanxi and Shandong. The Guangcai Program spread

rapidly inspiring an increasing number of private entrepreneurs to join the movement. Case Village Head Course Enters Its Fourth Year Unveiling Seed Plan to

Intensively Cultivate Rural Development Pioneers

Sustainable Development Assistance Innovating the Guangcai Program On November 4 2024 the 4th iteration of New Hope Liuhe's Village Head Course for rural revitalization commenced in

Hengkantou Village Zhejiang. To further amplify the spirit of the Guangcai Program and maximize the impact of the Village

As poverty alleviation efforts entered a new phase New Hope Liuhe officially launched the 1+1 Precision Poverty Alleviation Plan in 2017. This marked a Head Course platform this training session concurrently launched the Seed Plan project. This initiative offers scholarship

shift from single project assistance to comprehensive supply chain support. Leveraging the Company's industrial strengths in breeding feed production for exceptional action plans and participating villages aiming to establish a robust long-term follow-up and evaluation

and slaughtering it developed sophisticated poverty alleviation models such as "3+N" and "4+N." These models fostered collaborative assistance mechanism. The program regularly facilitates expert-led guidance and diagnostic sessions empowering rural development

communities with multiple stakeholders aimed at providing stable income streams to impoverished households. pioneers to tackle practical challenges through innovative approaches. Ultimately it seeks to explore and forge new

pathways and models for rural revitalization and development.Group photograph of trainees and instructors in the 4th Chairperson Liu Chang delivers a keynote lecture entitled "The Breeding farm built in Tekoujiagu Village nestled deep in the At the 2024 dividend distribution ceremony 182 villagers Village Head Course Answer to Rural Revitalization Lies Beneath Our Feet" to the trainees.Liangshan Mountains at an altitude of 3000 meters received dividends totaling RMB 303500.Effective Governance New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Building a

Strong Foundation

for Grow through

Effective Governance

Contributing to the

UN 2030 SDGs

New Hope Liuhe's Philippines Region conducts lean competition.Effective Governance New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Party Building Efforts Corporate Governance

The year 2024 was pivotal for implementing the spirit of the 20th CPC National Congress and marked the "Quality Focus" year for New Hope Group's

Party building initiatives. The Party Committee of New Hope Liuhe diligently implemented new directives for Party building from higher-level Party

committees. They conducted in-depth studies to comprehend the spirit of the Third Plenary Session of the 20th CPC Central Committee Xi Jinping Corporate Governance System

Thought on Socialism with Chinese Characteristics for a New Era and Party discipline education. The committee focused on strengthening branch New Hope Liuhe strictly adheres to relevant laws General Meeting

foundations enhancing brand influence unifying organizational power and empowering development in the Group's Party building actions. They and regulations including the Company Law of the of Shareholders

collaboratively developed the "New Hope Red" Party building brand leveraging high-quality Party building activities to guide and ensure high-quality People's Republic of China the Securities Law of the

development. People's Republic of China the Code of Corporate

Governance for Listed Companies the Rules

Strengthening Ideological Conviction Governing the Listing of Stocks on the Shenzhen

Stock Exchange and the Shenzhen Stock Exchange Board of Directors

The Company consistently prioritized political theory learning. Through participation in the Group Party Committee's study sessions on the Third Plenary Self-Regulatory Guidelines No. 1 – Standardized

Session of the 20th CPC Central Committee organizing Party Committee "Three Meetings and One Lecture" (i.e. branch Party members' congress Operations for Companies Listed on the Main Board .branch committee meeting Party group meeting and Party lecture) and themed Party days they guided Party members and cadres to deeply study The Company has established and standardized

Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era the spirit of the 20th CPC National Congress and General Secretary Xi a three-tier governance structure. The General

Jinping's series of important speeches. This effectively guided Party members and cadres in strengthening their adherence to key Party principles. Meeting of Shareholders Board of Directors Board

Specifically they aim to reinforce the "Four Consciousnesses" which encompass political awareness holistic perspective recognition of core leadership of Supervisors and management team rigorously Board of

and alignment with Party directives. Additionally these measures seek to bolster the "Four Confidences" instilling a deep-rooted faith in China's chosen Supervisorsexercise their rights and fulfill their obligations

path theoretical foundations governing system and cultural heritage. Finally they emphasize the "Two Upholds" which involve unwavering support according to the responsibilities granted by the

for General Secretary Xi Jinping's central role within both the Party Central Committee and the Party as a whole as well as steadfast commitment to Articles of Association establishing a governance

upholding the authority and unified leadership of the Party Central Committee. mechanism with clear power structures coordinated

operations and mutual checks and balances among

the power organ decision-making body supervisory

Enhancing Organizational Construction *This committee has a majority of independent body and executive body. In 2024 the Company directors and is chaired by an independent director.New Hope Liuhe efficiently completed the organizational re-election of the Company's Party Committee and five directly affiliated Party branches updated and revised six key governance documents

electing 22 members for the second term. In 2024 adhering strictly to Party member development guidelines and procedures the New Hope Liuhe including the Articles of Association Rules of

Party Committee recruited one new Party member and cultivated two applicants for Party membership. They facilitated the transfer and reception of six Procedure for the Board of Directors Detailed Rules

Party members and assisted 13 Party members in successfully transferring their Party organization relationships emphasizing a sense of belonging for for Specialized Board Committees Working System Management

Party members and addressing practical matters for each individual. for Independent Directors Annual Report Working Team

System for Independent Directors and Working

Guiding Practice through Party Building Rules for the Annual Financial Report of the Board's

Audit Committee further enhancing the Company's

In 2024 New Hope Liuhe persisted in deeply integrating Party building work with business operations incorporating Party building principles governance system. Indicator 2024

throughout the entire business process. They developed outstanding employees into new Party members encouraged advanced Party members to

take on Party building roles and promoted Party members and cadres to become business leaders taking the lead and setting examples in their work Number of Board of Directors meetings held throughout the year 15*

thereby effectively driving high-quality business development.Number of Board of Supervisors meetings held

throughout the year 9

Board Effectiveness Number of general meetings of shareholders

held throughout the year 4

The Board of Directors functions as the Company's

Resolutions passed by Board of

primary decision-making body supported by five Number Directors meetings 67

specialized committees: the Strategy and Sustainable of Resolutions passed by Board of 24

Development Committee the Audit Committee resolutions Supervisors meetings

Successful Convening of New Hope Liuhe's Second Congress of Party Representatives passedthe Nomination Committee the Remuneration Resolutions passed by general meetings of shareholders 35

and Appraisal Committee and the Risk Control

Committee. These committees leveraging their *Excluding special meetings of independent directors and meetings of specialized

On October 16 2024 New Hope Liuhe successfully professional expertise oversee various aspects of the Board committees.held its Second Congress of Party Representatives Company's operations and management. During the

with 144 Party delegates participating across reporting period the Company expanded its Board by

both online platforms and at the physical venue adding one director bringing the total membership

in Chengdu. The congress conducted elections to nine. This expansion enriches Board discussions

in accordance with the Regulations on Election and decision-making with a broader range of

of Primary-level CPC Organizations . Through and interests of both the listed company and its shareholders. Detailed perspectives and more comprehensive analysis

democratic voting seven comrades were elected information on Board composition performance of duties composition thereby enhancing the quality of decisions and

as members of the Second New Hope Liuhe Party and operational division of specialized committees shareholder and enabling the Board to fulfill its responsibilities more

Committee. Subsequently the first meeting of the actual controller status and related party transactions is available in effectively. To enhance the Board's Audit Committee's

new committee was held to elect the secretary the New Hope Liuhe Co. Ltd. 2024 Annual Repor t.oversight of annual financial report preparation and

and deputy secretaries and clarify the division disclosure the Company implemented the Working

of responsibilities among committee members. The Company has established a robust Board performance evaluation Rules for the Annual Financial Report of the Board's

Effective Party building translates into enhanced mechanism. The Remuneration and Appraisal Committee is tasked Audit Committee . This measure ensures the Audit

productivity. The successful convening of the with reviewing the performance of directors (non-independent Committee's diligent fulfillment of its responsibilities

congress provided strong organizational support for directors) and senior management conducting annual performance regarding the annual financial report guaranteeing

New Hope Liuhe's Party building work and business appraisals. The evaluation results are linked to various factors including the truthfulness completeness and accuracy of

development injecting new momentum into the role the relevant personnel's duty performance work capabilities and the Company's financial reporting. The Company

of Party building in promoting and safeguarding the Company's operational status. Furthermore the Company has convenes Board and specialized committee meetings

enterprise development. implemented internal restraint and accountability mechanisms. The in compliance with legal requirements strictly Risk Control Committee is responsible for economic or administrative

adhering to regulations governing voting matters accountability of directors supervisors and senior management in

and procedures thus safeguarding the legal rights cases of dereliction of duty.Risk Control Committee

Remuneration and Appraisal

Committee*

Nomination Committee*

Audit Committee*

Strategy and Sustainable

Development Committee KEY

PERFORMANCEEffective Governance New Hope Liuhe Co. Ltd. 2024 Sustainability Report

KEY The current Board comprises nine directors with ages spanning from those born in the 1950s to the 1980s. They bring diverse professional Board Specialized Committee Number of Meetings Held Board Member Attendance Rate backgrounds offering extensive theoretical knowledge and practical experience in fields such as economics business administration accounting animal

PERFORMANCE

Audit Committee 4 100% husbandry and mechanical manufacturing. This diversity enables them to provide expert guidance and forward-looking advice on financial decisions

compliance operations risk prevention and control and strategic development planning. As the Audit Committee convener independent director Ms.Strategy and Sustainable Development Committee 1 100% Cai Manli is a Certified Public Accountant of China Certified Tax Agent of China and International Certified Business Valuation Analyst. Her previous role

at the China Securities Regulatory Commission (CSRC) involved listed company supervision where she led the accounting and valuation group in the

Remuneration and Appraisal Committee 2 100% Listed Company Supervision Department. Her rich financial background and experience contribute to effective internal financial management and risk

control implementation.Nomination Committee 3 100%

Risk Control Committee 1 100%

Professional Capabilities

Pos it i o n Name Gender Tenure

Industry Experience Risk Management Economics & Law

Board Independence Chairperson Liu Chang Female November 29 2011 √ √

The Company fully recognizes the independent director system as a crucial safeguard for promoting standardized operations of listed companies Executive Chairperson President Zhang Minggui Male September 24 2020 √ √

maintaining their overall interests and protecting the legal rights of minority investors. New Hope Liuhe strictly adheres to the requirements of the √

Measures for the Administration of Independent Directors of Listed Companies implementing the Working System for Independent Directors and the Director Liu Yonghao Male February 26 1998 √ √

Annual Report Working System for Independent Directors . The Company rigorously follows the qualification requirements and appointment procedures

specified in the Working System for Independent Directors to select and appoint qualified experts and authoritative figures as independent directors Director Wang Hang Male November 29 2011 √ √ √

fully leveraging their role in corporate governance. Director Li Jianxiong Male May 26 2016 √ √

The Company currently has three independent directors comprising 33.33% of the Board. None of these directors hold company shares in any form. Director Zhou Boping Male May 30 2024 √ √

Independent directors do not directly participate in company management thereby reducing potential conflicts of interest and exercising their

balancing role effectively. Independent directors constitute the majority and serve as chairs in the Board's Audit Committee Nomination Committee and Independent Director Wang Jiafen Female May 31 2022 √ √ √

Remuneration and Appraisal Committee ensuring objectivity and fairness in Board decision-making. The Company provides independent directors with Independent Director Peng Long Male May 30 2024

comprehensive working conditions and personnel support to fulfill their responsibilities. It also ensures their right to information by regularly briefing √ √

them on company operations and providing necessary materials ensuring they have sufficient resources and access to professional opinions when Independent Director Cai Manli Female June 6 2019 √ √

performing their duties.During their tenure independent directors have diligently fulfilled their responsibilities actively participating in various Board activities and effectively

performing supervisory and strategic decision-making functions. In 2024 independent directors attended four specialized meetings focusing on

reviewing major financial matters compliance of related party transactions and internal control mechanisms. They leveraged their professional expertise

to provide independent opinions effectively safeguarding the interests of minority shareholders. Additionally they participated in three strategic-

themed seminars engaging in in-depth discussions on industry development trends business transformation and upgrade strategies and medium- to Director

long-term development plans offering forward-looking suggestions for the Board's strategic decision-making. Furthermore the independent director Director Gender 33%

team conducted on-site visits to the Company's production bases and R&D centers. Through field research discussions with management and analysis Positions 33% Distribution

of operational data they gained comprehensive insights into production and operational dynamics. Drawing on their industry experience they provided

constructive guidance on capacity optimization and technological innovation effectively promoting continuous improvement in corporate governance Director Male

and operational efficiency.Independent director 67% Female 67%

KEY Composition of Board Specialized Committees

PERFORMANCE

Board Specialized Number of Number of Number of 11%

Committee Independent Directors Non-Executive Directors Executive Directors Director 22% Director 22%

Education Age

Audit Committee* 2 1 0 Distribution Distribution 45%

11%

Strategy and Sustainable Development Committee 2 2 2

Doctoral degree Above 65 years

Remuneration and Appraisal Committee* 3 1 1 67% 22%

Master's degree 60-65 years

Nomination Committee* 2 0 1

Bachelor's degree and below 50-59 years

Risk Control Committee 2 1 2 40-49 years

Note: * indicates that an independent director serves as the committee chair.Board Skills and Diversity To constantly enhance governance compliance the Company's directors supervisors and senior management actively engage in training on corporate

governance and diligent performance of duties. These sessions are organized by government departments the CSRC stock exchanges and relevant

Enhancing Board diversity is a cornerstone of effective corporate governance and is essential for balanced inclusive decision-making. The Company associations. Notable examples include the training on "Strengthening Capital Market Integrity Construction and Cultivating Anti-fraud Compliance

actively cultivates a diverse Board. Selection procedures for directors and senior management are clearly outlined in the Articles of Association Rules Awareness" for controlling shareholders actual controllers directors supervisors and senior management of listed companies in Sichuan Province in

of Procedure for the Board of Directors and Detailed Rules for Specialized Board Committees . All appointments adhere to meritocratic principles while 2024. Additional programs cover independent director reform and follow-up training for listed company independent directors. During the reporting

meeting qualification requirements aiming to optimize Board member diversity. period the Company recorded a cumulative total of 54 attendances in these training sessions by its directors supervisors and senior management.Effective Governance New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Director and Senior Management Compensation Policy The Company explicitly states in its Working System for Independent Directors that independent directors owe fiduciary and due diligence duties to the Company and all shareholders. In addition to the powers conferred by the Company Law of the People's Republic of China and other relevant

Compensation for Board members and senior management is a critical component of corporate governance. The Remuneration and Appraisal legislation the Company grants independent directors special authority to express autonomous opinions on matters that may potentially harm

Committee formulates and reviews remuneration policies and plans based on areas of responsibility primary duties business innovation capabilities the Company or minority shareholders' interests. Maintaining substantive communication with minority shareholders is also considered one of the

and work performance. These align with the Company's Employee Compensation Management Trial Measures and relevant systems and regulations independent directors' key responsibilities.of the Board's Remuneration and Appraisal Committee. All policies require Board approval and subsequent ratification by the general meetings of

shareholders before implementation with full transparency through information disclosure. Diversified Communication Channels

The Company conducts comprehensive evaluations based on annual operating performance job responsibilities and the achievement of annual The Company has established multifaceted communication channels including general meetings of shareholders online voting on-site research

work objectives. Compensation and performance bonuses for senior management are determined by these evaluation results promoting enhanced online platform Q&As telephone inquiries and performance briefings. These channels foster investor understanding and recognition of the Company

responsibility fulfillment. The Nomination Committee and the Remuneration and Appraisal Committee oversee senior management nominations and establish constructive interactions between the Company and investors enhance corporate governance and effectively protect investors' legal rights

review their work capabilities performance and goal achievement determining annual compensation packages and year-end bonuses. Additionally particularly those of minority shareholders.the Company has implemented a multi-tiered assessment and incentive mechanism to further boost managerial enthusiasm and creativity driving

continuous corporate performance growth.Indicator 2024

Regular reports and ad hoc announcements disclosed 124

Investor communication events held 15

Director and Senior Management Ownership

Attendance in investor communication events 1156

Name Position Direct Shareholding (Shares) Total interactions with investors across all channels Over 3000

Liu Chang Chairperson 2155452

Zhang Minggui Executive Chairperson President 2000000

Liu Yonghao Director 892320

Wang Hang Director 60000

Li Jianxiong Director 0

Zhou Boping Director 100

Tao Yuling Executive President 1312500

Yan Qiubo Vice President 125000

Li Shuang Vice President 900000

Chen Xingyao Vice President CFO 1200000

Wang Pusong Investment Development Director 900000

Cai Manli Independent Director 10000

Lan Jia Board Secretary Chief Strategy Investment Officer 1000000

Pang Yundong Supervisor 72000

Investor Rights Protection

New Hope Liuhe places paramount importance on protecting investor rights. The Company strictly adheres to the CSRC's Rules for General Meetings

of Shareholders of Listed Companies and internal regulations including the Information Disclosure System Investor Relations Management System

and Significant Information Internal Reporting System . These measures ensure timely accurate and comprehensive information disclosure. During

the reporting period the Company maintained open communication with investors through various channels including regular reports ad hoc

announcements on-site research investor hotlines and the cninfo.com platform thereby safeguarding investors' right to information and participation

in major company events.Safeguarding Minority Investor Rights

To fully protect minority investor rights New Hope Liuhe's stipulates in its Articles of Association that when the general meetings of shareholders

deliberate on significant matters affecting minority investors' interests their votes should be tallied separately with results promptly disclosed. The

Company particularly emphasizes creating opportunities for minority investor engagement. General meetings of shareholders employ a combination

of on-site and online voting leveraging modern information technology to facilitate minority investor participation. The meeting agenda includes a

dedicated Q&A session for minority investors actively soliciting their opinions and suggestions. On-site research of Mianyang New Hope by the China Association for Public CompaniesEffective Governance New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Risk and Compliance Management Risk Identification and ControlThrough industry benchmarking and in conjunction with the Company's strategic management and operational conditions we regularly review and

analyze risk points facing the business conduct risk assessments and formulate improvement measures based on assessment results to further

New Hope Liuhe has established a comprehensive internal control and risk management system to strengthen and standardize internal management enhance the Company's risk prevention and control capabilities.enhance internal control effectiveness and create a favorable internal environment for enterprise risk control and efficient operations thereby ensuring

healthy and sustainable development.Major Risks Risk Description Response Strategies

Governance Strategy and Management Approach

Increase operational efficiency and reduce management

China's high import ratio of soybeans and corn may costs to enhance market competitiveness.The Board of Directors has established a Risk Control Committee with a Establish a "three lines of defense" risk control system based on the International Supply Chain

lead to feed shortages and cost surges if international

subordinate Risk Control Taskforce responsible for decision-making and Company's business realities and external circumstances. and Raw Material Price

Fluctuation Risk geopolitical tensions rise or trade barriers strengthen Diversify raw material procurement channels and oversight of major company-wide risk management matters.threatening livestock industry profits. explore domestic alternative solutions (e.g. drought-

Conduct specialized risk management training on key risk areas such

Multiple relevant systems have been formulated and implemented resistant corn varieties).as anti-corruption production safety and environmental protection.including the Management System for Internal Controls and

Management Measures for Accountability (Trial) . Promote the development of a digital audit system to enhance internal Feed export expansion (e.g. Southeast Asian market)

data analysis capabilities and strengthen audit inspections. E x c h a n g e R a t e a n d may face supply chain disruptions due to exchange rate Develop overseas supply chains to hedge geopolitical

Logistics Risk fluctuations cross-border logistics interruptions or policy risks.restrictions.Impact Risk and Opportunity Management Indicators and Targets

The Audit and Supervision Department collaborates with risk control Develop annual audit work plans and conduct audits of the

units across Sectors to compile monthly audit and supervision reports for headquarters and wholly-owned and controlled subsidiaries covering

management reinforcing daily risk control in market operations sales the Company's core businesses affairs and high-risk areas. Incorporate Internal Control and Compliance Management

safety environmental and other dimensions. problem rectification into performance evaluations to ensure effective The Company has established a comprehensive internal risk control system clearly defining management responsibilities authorization and approval

correction of issues identified during audits. processes for key control points in relevant policies and specifying implementation procedures for critical business processes.Implementing System Development. The Company constantly establishes and improves its internal regulations such as the Food Safety Red Line

Management Rules Interim Management Measures for Feed Quality and Safety Audits and Management Measures for Livestock and Poultry Breeding

Quality and Safety Audits to enhance the standardization and effectiveness of internal control.Risk Management Improving Audit Efficiency. In 2024 the Audit and Supervision Department was restructured into four centers: the Operations Audit Center the

Supervision Center the Risk and Data Center and the Engineering Audit Center. Internal control management manuals were developed for different

New Hope Liuhe rigorously adheres to laws and regulations including the Company Law of the People's Republic of China the Securities Law of modules refining compliance management work. The Audit Data Center has established a prototype for digital auditing enhancing internal data

the People's Republic of China the Basic Internal Control Norms for Enterprises and the Application Guidelines for Enterprise Internal Control . The analysis capabilities and providing data support for audit practices.Company consistently establishes and refines relevant regulatory systems such as the Management System for Internal Controls and Management

Measures for Accountability (Trial) . A robust "three lines of defense" risk control system has been implemented to foster a favorable internal environment

Conducting Special Audits. The Company conducts audits on its Pig BG Feed BU and Overseas BU primarily including performance audits

for risk control and efficient operations providing reliable safeguards for stable long-term development. engineering settlement reviews and special audits. 10% of these engineering audits are completed by external auditors with the remainder conducted

by the Audit and Supervision Department. In 2024 the Company prevented losses of RMB 85.60 million recovered losses of RMB 47.86 million held 56

Risk Management System individuals accountable initiated 7 cases and took criminal measures against 8 individuals.The Board of Directors has established a Risk Control Committee with a subordinate Risk Control Taskforce. This taskforce is responsible for decision-

making and oversight of major company-wide risk management matters. It also promotes the establishment of three lines of defense for risk control at

the operational level effectively preventing and mitigating direct risks that may cause losses to the Company while creating additional value through

effective management of opportunity risks.KEY

PERFORMANCE

First Line of Defense Business operating units are responsible for implementing internal risk control measures identifying assessing and responding to

risks in daily operations.Risk control departments of business operating units and functional departments at the headquarters are responsible for risk internal

Second Line of Defense Conducted 27 performance audits 27 engineering audits control design and supervising the work of the first line of defense.

29 supervisory audits and 43 other special audits.

The Audit and Supervision Department is responsible for post-event audits and internal accountability. Cases involving criminal

Third Line of Defense offenses are referred to judicial authorities ensuring the effectiveness of the risk management and internal control system.KEY Tax Management

PERFORMANCE New Hope Liuhe strictly complies with laws regulations and relevant systems such as the Enterprise Income Tax Law of the People's Republic of China

and the Individual Income Tax Law of the People's Republic of China . The Company consistently establishes and improves its tax management system

13 focusing on tax risk management and fulfilling corporate tax obligations while providing support for market expansion product R&D M&As and Convened Risk Control Committee meetings. reorganizations and other business activities. During the reporting period the Company did not engage in any significant tax violations and was not

involved in any major litigation or arbitration related to taxation.Effective Governance New Hope Liuhe Co. Ltd. 2024 Sustainability Report

KEY Additionally we regularly conduct tax policy training on individual income tax settlements enterprise income tax settlements and other relevant topics. We also provide ad hoc training on invoices risk operations new businesses and new policies. We promptly disseminate new policies and important

PERFORMANCE tax matters throughout the Company constantly improving the tax literacy and risk identification and response capabilities of our financial personnel. In

2024 we organized four specialized tax training sessions recording 2120 attendances.

Indicator 2024 2023

Profit before tax (million RMB) 483.4706 -681.8108

Risk Type Risk Description Response Strategies

Reported tax amount (million RMB) 469.8421 541.0741

Effective tax rate 9 7 . 1 8 % -79.36% To reduce issuance risks the Company promotes

electronic invoices actively engages with qualified

Cash tax paid (million RMB) 6 5 0 .1 8 2 7 758.1318 vendors and employs automated invoicing systems.Invoice applications are initiated from the financial

Cash tax rate 1 3 4 . 4 8 % -111.19% accounting system to ensure comprehensive and

authentic business invoices.Tax Management System and Policies Primarily related to invoices and declarations.The Finance Department has established a dedicated Tax Management Center staffed by five full-time professionals. This center is responsible for Regarding invoices risks include obtaining To mitigate the risk of obtaining fraudulent invoices the falsely issued invoices or issuing non-

developing and implementing a tax strategy focused on compliance management tax burden optimization and business support. It oversees the Company strengthens policy education clarifies direct VAT Risk compliant invoices. The Company has

Company's tax-related matters aligning with the overall business strategy and operational activities to provide robust tax support for market expansion responsibilities of business personnel and enhances established management systems through accountability of business leaders and financial

product R&D M&As and reorganizations and other business initiatives. This approach ensures that tax management contributes positively to the the Invoice Management Measures and managers.Company's business growth and sustainable development. The head of the Tax Management Center is responsible for formulating and executing the utilizes information technology tools to

mitigate these risks.overall tax strategy as well as coordinating relationships with external tax authorities and internal departments. Financial personnel at branch and

subsidiary companies handle specific tax declarations and tax-related matters on a part-time basis. The Tax Management Center maintains close

communication with the finance departments of branches and subsidiaries ensuring mutual coordination and support for the smooth operation of the

Group's tax activities. The shared service center leverages external service providers for automatic invoice verification improving

efficiency in authenticating invoices intercepting non-

The Company maintains open lines of communication with tax authorities to stay informed about tax policy dynamics and changes in regulatory compliant invoices at the source and reducing the risk

requirements. We constantly refine our tax management systems including the Enterprise Lifecycle Tax Registration Management System Tax of accepting problematic invoices.Declaration Management System Invoice Management System and Tax Accounting System . These systems clearly define the principles requirements

and processes for tax compliance regulating corporate tax behavior at various levels and stages. We regularly update tax operation standards in

accordance with domestic and international tax policies to ensure timely and full tax payments by the Company. During the reporting period we

optimized system templates for enterprise income tax final settlement and prepayment stamp duty water resource tax and other taxes improving

form automation rates and enhancing the efficiency and accuracy of the Company's tax filings.Regarding authenticity the Company enhances

collaboration with accounting centers and shared

service centers to standardize cost and expense entry

vouchers ensuring consistency from financial to

operational levels and standardizing pre-tax deduction

Tax Strategy and Commitments vouchers across business operations.Enterprise Income Primarily related to the authenticity and

Tax Risk reasonableness of costs and expenses. Regarding reasonableness the Company provides

We commit to adhering to both the spirit and letter of tax laws and regulations in countries where we operate. regular training and ongoing guidance on prepayment

and settlement filing procedures clarifying easily

We pledge not to transfer created value to low-tax jurisdictions. confused items and standardizing declaration filing

practices. It also utilizes a tax management system with

We commit to not using tax structures without commercial substance.built-in policy formulas to enhance compliance in areas

We promise to conduct transfer pricing in accordance with the arm's length principle. such as deduction standards for business entertainment

expenses advertising costs etc.We commit to not using confidential jurisdictions or so-called "tax havens" for tax avoidance.Tax Control and Risk Management

The Company consistently monitors its tax risk status based on tax policies and through comprehensive tax management systems. We regularly conduct

risk assessments on VAT enterprise income tax individual income tax and other areas. Following a process of risk identification assessment and

response we implement internal tax self-inspection systems and cross-checks within Sectors. By analyzing corporate tax business processes financial

data and tax policy implementation we identify potential tax risk points and determine risk levels based on the likelihood of occurrence and potential

impact. For shared risks across sectors we respond in a timely and coordinated manner. For high-risk issues immediate countermeasures are taken; for

medium- and low-risk issues we maintain continuous monitoring and respond as appropriate.Effective Governance New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Business Ethics KEY Coverage rate of anti-corruption training for directors: 100%PERFORMANCE Total attendance in anti-corruption training for directors: 9

New Hope Liuhe conducts its operations with unwavering commitment to compliance integrity and honesty. The Company adheres to ethical

standards of fairness trust and transparency in all business activities. It participates in market competition in accordance with laws and regulations Total hours of anti-corruption training for directors: 9

resolutely opposing any form of commercial bribery money laundering monopolistic practices or unfair competition. Through these efforts the

Company strives to foster a sustainable business environment.Coverage rate of anti-corruption training for middle and senior management: 100%

Total attendance in anti-corruption training for middle and senior management: 2900

Total hours of anti-corruption training for middle and senior management: 5800

Governance Strategy and Management Approach

Coverage rate of anti-corruption training for employees: 76%

The Audit Committee and Risk Control Committee operating under the Establish and constantly refine anti-corruption mechanisms including Total attendance in anti-corruption training for employees:

Board of Directors serve as the executive bodies for business ethics and audit-supervision collaboration frameworks supervision BP systems 3786

anti-corruption initiatives. business-audit communication protocols government-enterprise Total hours of anti-corruption training for employees: 90864

integrity co-construction initiatives and case tracking procedures.The Company has developed comprehensive policy documents

including the Employee Sunshine Commitment Code of Conduct for Launch the Sunshine Action mandating new employees to sign a

Agents Six Red Lines of Non-permissible Actions and Management Sunshine Commitment to reinforce a culture of integrity.Measures for Accountability (Trial) .Whistleblowing and Whistleblower Protection

Sign Sunshine Cooperation Agreements with suppliers to collectively

build an ethical supply chain. Whistleblowing Management. The Company has developed and rigorously enforces the Whistleblowing Investigation Management Measures

which clearly stipulate that employees at all levels and business partners should report fraud and illegal activities truthfully and legitimately. The Audit

Committee operating under the Board of Directors serves as the governing body for whistleblowing investigations. It is responsible for authorizing

Impact Risk and Opportunity Management Indicators and Targets guiding and constantly overseeing the whistleblowing complaint processes. The Audit and Supervision Department acts as the primary unit managing

whistleblowing investigations coordinating and overseeing all related matters.Conduct regular audits on business ethics and anti-corruption matters Closely monitor key indicators such as the handling of corruption

across production and operations ensuring comprehensive reviews of all Reporting Channels. The Company has established a variety of public reporting channels including traditional mail telephone hotlines email Feishu litigation cases and the recovery of economic losses. questionnaires WeChat reporting and WeChat official account messaging. Dedicated personnel are assigned to maintain these channels and register

business areas once every three years.Develop robust digital audit models to enhance supervision and audit all reported information.capabilities.Whistleblower Protection. The Company actively encourages the reporting of corruption incidents. The Whistleblowing Investigation Management

Measures specify that named whistleblowers employed by the Company may be eligible for rewards if the reported information is verified as true and

reliable and meets specific criteria. Through institutional regulations the Company ensures strict confidentiality of reported information case handling

status and whistleblower-related details in daily operations to safeguard the legitimate rights and interests of whistleblowers.Anti-Corruption and Anti-Commercial Bribery

New Hope Liuhe steadfastly upholds its anti-corruption standards and systematically promotes integrity governance to foster the Company's robust

development and long-term success. In 2024 five corruption litigation cases were concluded with the involved individuals receiving legal sentences. KEY

PERFORMANCE Effective handling rate of valid reports: 100%

Management Mechanism

The Audit Committee operating under the Board of Directors is responsible for overseeing business ethics and anti-corruption efforts. The Company

has implemented a "one department and three centers" structure led by the Audit and Supervision Department. This structure creates a comprehensive

collaboration mechanism among the Supervision Center Audit Center and Internal Control Center aiming to build an anti-corruption compliance REPORTING 1. Reporting hotline: 028-85953661

system that deters prevents and discourages corrupt practices. CHANNELS: 2. Reporting mobile: 13981753661

During the reporting period the Company revised and enhanced its Management Measures for Accountability (Trial) designating the Risk Control

Committee as the highest authority for accountability. This committee is tasked with determining the fundamental direction and principles of company 3. Reporting email: tousu@newhope.cn

accountability clearly defining decision-making bodies accountability scope methods impact periods and handling degrees encompassing all 4. Reporting WeChat: Sunshine New Six

employees.Integrity in Business Practices

Online Reporting of Integrity Compliance. The Company strictly prohibits employees from accepting any form of commercial bribery. In instances

where refusal is not feasible they must report and register such occurrences on the Company's internal platform. In 2024 30000 potential conflicts of

interest were reported with a 75% completion rate for declarations.Enhancing Integrity Awareness. The Company conducts comprehensive training programs related to anti-corruption and business ethics to

strengthen awareness among directors management employees and suppliers. In 2024 New Hope Liuhe continued its Sunshine Culture Festival Anti-Unfair Competition

featuring 24 online and offline events centered around themes such as Sunshine Six Expenses Sunshine Procurement Sunshine Settlement Sunshine New Hope Liuhe strictly adheres to the Anti-Monopoly Law of the People's Republic of China the Anti-Unfair Competition Law of the People's Republic

Compliance and Sunshine Public Welfare. These events included integrity warning case exhibitions sunshine exams interactive games cartoon of China the Several Provisions on Prohibiting Infringements upon Trade Secrets and relevant anti-monopoly and fair competition laws and regulations

exhibitions business activities and legal think tanks. A total of 3786 people participated. Online promotions through the Sunshine New Six subscription in countries and regions where it operates. The Company is committed to conducting all business activities in accordance with the principles of fair

account featured Sunshine Cartoons with 19 articles published reaching 11195 readers and achieving full coverage of internal employees and external and free competition. During the reporting period the Company faced no legal proceedings regarding unfair competition antitrust or anti-monopoly

partners. These initiatives aim to cultivate a clean and fair workplace environment and promote a pervasive culture of integrity. practices.Effective Governance New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Supply Chain Management

The Company pledges to refrain from making false or misleading statements about New Hope Liuhe places significant emphasis on the societal and environmental value and impact of upstream and downstream activities within

competitors in the market maliciously defaming competitors illegally collecting competitors' its industrial chain. The Company adheres strictly to relevant national laws and regulations including the Law of the People's Republic of China on

trade secrets or other confidential information and engaging in illegal activities such as Invitation and Submission of Bids and its associated implementation regulations. It is committed to fostering a cooperative environment characterized

price collusion with industry peers that disrupt market order. We collaborate with peer by respect equality and transparency while actively supporting supplier growth and collaboratively building a responsible supply chain.companies to maintain a fair competitive market environment. On October 18 2024 we

actively participated in the Anti-Monopoly Compliance Lecture special training organized

Fair Competition by the State Administration for Market Regulation in conjunction with the Bureau of

Animal Husbandry and Veterinary Services of the Ministry of Agriculture and Rural Affairs Governance Strategy and Management Approach

and the Competition Policy and Assessment Center of the State Administration for Market

Regulation. This enhanced our understanding of anti-monopoly laws and regulations.Moving forward we will mitigate risks through regular compliance audits and rapid response Establish a Supplier Management Committee to oversee supplier Implement a supplier lifecycle management system encompassing

mechanisms actively promoting healthy corporate development. management with a dedicated Supplier Management Department supplier admission tiered management performance evaluation

responsible for daily execution coordination and implementation elimination and replacement. This system integrates environmental and

supervision. social responsibilities into every aspect of supply chain management to

build an efficient and reliable supply chain.Form a Supplier Certification/Review Team to conduct specific

assessments for new supplier admission and existing supplier Regularly conduct supplier communication and exchanges promptly

certification. and accurately conveying the latest policies and relevant information

The Company strictly complies with the Patent Law of the People's Republic of China through supplier interaction platforms. Provide supplier training and

the Trademark Law of the People's Republic of China the Copyright Law of the People's empowerment programs to enhance overall supplier capabilities.Republic of China and other relevant laws and regulations. We have established and

refined our internal intellectual property management system delineating the processes

Impact Risk and Opportunity Management Indicators and Targets

Intellectual Property Protection for application maintenance use and protection of intellectual property as well as the

responsibilities and authorities of various departments in intellectual property management.In alignment with industry developments we proactively plan for patent applications Develop a comprehensive risk analysis model and risk assessment Establish annual supplier audit plans and targets with ongoing

and protection in areas such as pig breeding and feed grain conservation to better mechanism conducting in-depth analysis on risk identification potential tracking of supplier improvement effects.safeguard our scientific and technological research outcomes while committing to avoiding losses and specific mitigation measures. Formulate response strategies

infringement of others' intellectual property rights. for major risks.In the Six Red Lines of Non-permissible Actions the Company explicitly prohibits the

disclosure of company trade secrets including but not limited to salary information

confidential information meeting agenda training content and information about criminal Supplier Management System

Trade Secret Protection cases civil cases and administrative accountability. It is strictly forbidden to use company The Company has designed and implemented a robust supplier performance evaluation system based on internal management standards such

information for personal or others' benefit or convenience. as the Internal Supplier Management System and Sourcing and Price Comparison Management System . This system encompasses work standards

and norms for supplier registration admission review performance assessment supplier collaboration supplier exit and blacklisting. It also clearly

defines the organizational structure and daily operational mechanisms establishing an efficient and reliable supply chain. The Company highly

prioritizes the protection of supplier rights treats suppliers with integrity ensures timely payments to small and medium-sized enterprises and

safeguards their legitimate interests.The Company adheres to the Anti-Money Laundering Law of the People's Republic of Management Structure

China enhancing internal anti-money laundering compliance management to ensure

business compliance and maintain financial security. We actively cooperate with law The Company has enhanced the structure of its Supplier Management Committee by clearly defining responsibilities at each level enabling more

Anti-Money Laundering enforcement agencies regulatory authorities and the financial industry to combat money efficient and professional collaboration and division of labor. This ensures that each area of management is handled by dedicated personnel with

laundering activities. We regularly conduct anti-money laundering training to improve specialized oversight.employees' awareness and understanding of anti-money laundering work ensuring

accurate implementation of anti-money laundering policies.The Decision-Making Body Oversee supplier management work responsible for system planning and design goal setting and supervision of

Supplier Management Committee implementation. Review and decide on major issues related to supplier management.KEY The Management Body Responsible for daily work execution coordination and implementation supervision. Organize admission of new

PERFORMANCE Supplier Management Department suppliers and certification of existing suppliers.Number of unfair competition incidents: 0

The Executive Bodies Develop new suppliers propose admission execute admission standards conduct certification of existing

Review and Certification Team/ suppliers carry out daily business liaison and resolve specific issues in the process.Procurement StaffEffective Governance New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Supplier Management Process Risk Type Response Strategies

The Company has implemented comprehensive systems including supplier evaluation and re-evaluation qualified supplier

Develop eight categories of admission application templates based on characteristics such as business types of listings raw material procurement management and acceptance protocols. All raw materials are subject to stringent

cooperating suppliers forming the Admission Certification Template Set V4.0. Establish a bi-weekly supplier review quality standards and testing methods. The Company ensures that unified quality standards are incorporated into all

Supplier Admission meeting mechanism and provide an emergency admission expedited channel for certain suppliers due to specific Quality Risk raw material procurement contracts with suppliers subject to approval by the supply chain quality management center.business cooperation needs. Suppliers found engaging in adulteration or posing quality and safety risks are blacklisted by the supply chain quality

management center prohibiting future procurement from these entities.For detailed information on supply chain quality management please refer to the "Stringent Quality and Safety

Control" section.Conduct performance evaluations of similar suppliers based on supplier level and category achieving overall

Supplier Evaluation The Company leverages suppliers' external warehouses or arranges for advance transfer of goods to its own warehouses optimization of the supplier resource pool through continuous cycling upgrading/downgrading and elimination. Transportation Risk ensuring timely delivery for regional companies and converting long-distance periodic transportation into more efficient

short-distance transportation.Implement a classified and tiered management system for suppliers divided into four categories: strategic The Company closely monitors shifts in international trade and environmental protection policies swiftly adjusting

Supplier Classification suppliers quality suppliers general suppliers and supplementary suppliers. Each category is further subdivided procurement and production strategies. It actively participates in policy seminars organized by industry associations

into four levels: A B C and D. Policy Risk maintains open communication with government departments provides timely feedback on policy implementation

challenges and seeks policy support and guidance.The Company mandates suppliers to sign Sunshine Cooperation Agreements achieving a signing rate exceeding 99%. It

Supplier Exit Establish a supplier exit mechanism and introduce supplier status change notifications to allow suppliers to conducts regular inspections through internal control and audit mechanisms and establishes public reporting channels

understand their own status facilitating two-way communication with suppliers.to encourage suppliers to report corruption incidents.Corruption Risk The Company implements a dedicated complaint and reporting section on the supplier portal and conducts ongoing

integrity promotion. It organizes offline anti-corruption training for procurement personnel and online sessions for

suppliers engaging over 500 suppliers with a coverage rate exceeding 85% for small suppliers.Key Performance Unit 2024

The Company is currently developing a digital outreach system which upon launch will enable real-time dissemination

Total number of qualified suppliers / 4696 of supply chain integrity-related policy requirements and promotional content to all suppliers. Pilot implementation is

- Domestic suppliers (including Hong Kong Macao and Taiwan) / 3872 scheduled for January 2025.- Overseas suppliers / 824

The Company incorporates environmental protection and social responsibility as key evaluation criteria in the supplier

Number of suppliers assessed / 4696 ESG Risk performance assessment framework to minimize the environmental and social impact of raw materials.Number of suppliers identified as having significant actual/potential negative impacts / 0

Number of suppliers with agreed-upon corrective action plans / 21

Number of suppliers that completed improvements / 21 Supply Chain Responsibility Management

Number of suppliers terminated due to significant actual or potential negative impacts / 0 New Hope Liuhe is dedicated to fostering sustainable development across the agricultural animal husbandry and food industry chain enhancing

procurement and supplier management practices and integrating environmental and social responsibilities throughout the supply chain. As part of

its global business expansion the Company is developing comprehensive labor and human rights management policies for suppliers and contractors.Enhancing Supply Chain Resilience These policies will require suppliers to make formal commitments in areas including child labor prevention forced labor prohibition occupational safety

and health fair wages and benefits reasonable working hours non-discrimination practices equitable treatment freedom of association ethical

Constructing a secure and resilient supply chain is fundamental for a company to navigate steadily through a complex and volatile market environment. conduct environmental stewardship anti-corruption measures conflict of interest management and fair competition practices. The policies will clearly

New Hope Liuhe has established a comprehensive risk analysis model and risk assessment mechanism conducting thorough analyses on risk define breach of contract consequences and remedial measures serving as crucial dimensions in supplier performance evaluations. This approach aims

identification potential losses and specific mitigation measures to forge a resilient supply chain. to encourage suppliers to enhance their respect for and protection of fundamental human rights in the workplace ensuring consistent implementation

of human rights policies globally. The Company adheres to sustainable procurement principles using product quality assessment as a critical criterion

in supplier evaluations while also considering environmental protection and social responsibility as key factors in management assessments.Risk Type Response Strategies

Joint Capability Building with Suppliers

The Company has forged strategic partnerships with 69 industry-leading enterprises strategically diversifying

supplier channels to ensure a stable and secure supply of feed raw materials throughout the year. New Hope Liuhe views its suppliers as vital partners fostering relationships based on integrity and mutual growth to collaboratively build a resilient

Supply Disruption Risk supply chain. In 2024 the Company conducted comprehensive quality inspections and evaluations of select domestic suppliers identifying high-quality

During periods of resource scarcity and adverse macroeconomic conditions the Company negotiates with suppliers suppliers and products. The Company aligned testing methodologies with suppliers providing quality assurance and technical support to standardize

to establish expedited channels ensuring uninterrupted access to supplies. product quality thus facilitating mutual growth with its supplier network.The Company has established an industry research center to conduct proactive market analysis and forecasting

guiding various units to adjust raw material reserves based on market fluctuations.Price Risk KEY Number of suppliers participating in capability building initiatives: 13

The Company employs financial instruments strategically such as futures hedging to mitigate price volatility risks. PERFORMANCE Number of suppliers certified with quality management systems: 201Premium Products New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Advancing Inclusive

Nutrition and

Health through

Premium Products

Contributing to the

UN 2030 SDGs

Qianxihe Chilled Meat embodies the principle that "quality pork begins with superior pig farming".Premium Products New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Nutrition and Health R&D KEY Operate 79 scientific and technological innovation platforms at various levels PERFORMANCE including 11 national-level and 25 provincial-level platforms.New Hope Liuhe remains committed to innovation-driven development addressing critical challenges in breeding technology. By leveraging major

scientific and technological projects the Company spearheads key technological innovations in the industry fostering a culture of enterprise-wide Maintain 2 certified high-tech enterprises.participation in research and innovation. This approach maximizes the Company's development potential and vitality propelling its high-quality growth

to unprecedented levels.Enhancing R&D Framework

Case

New Hope Liuhe has established a globally competitive R&D infrastructure and management system consistently intensifying its investment in Establishment of a New Postdoctoral Research Workstation

scientific and technological innovation. Through the creation of innovative platforms across various domains the Company extensively connects with

high-quality resources in the pig farming and feed sectors. It strengthens collaborations with scientific research institutions universities and technical

experts promoting deep integration of industry academia and research. This strategy accelerates the transformation of scientific research outcomes In November 2024 New Hope Liuhe officially inaugurated a postdoctoral research workstation. This facility is equipped

into tangible productivity gains. with state-of-the-art professional laboratories including a feed quality safety testing center fermentation experimental

platform animal health detection center and GMP diagnostic reagent R&D workshop. Additionally R&D bases for various

livestock species including pigs poultry aquaculture and ruminants as well as feed pig breeding and farming have

Reinforcing Scientific Research Foundation been established nationwide. These comprehensive facilities provide postdoctoral researchers with extensive pilot and

The Company has implemented a scientific and technological innovation system with the Science and Technology Management Committee as the demonstration bases facilitating the practical application of scientific research outcomes in the sector.highest decision-making body and the Academic Advisory Committee providing technical guidance. This comprehensive system encompasses forward-

looking basic research applied research results transformation and promotion of practical applications. Leveraging various research institutes we have

established a broad research portfolio covering biological breeding animal nutrition farming technology disease prevention and control and food

safety contributing significantly to innovative industrial development.To further align business development with innovative talent and strengthen independent R&D capabilities we have established robust assessment

incentive and promotion mechanisms for scientific researchers. We have formulated motivational innovation reward measures including the New

Hope Liuhe Co. Ltd. Reward Measures for Encouraging and Promoting Technological Innovation and New Hope Liuhe Co. Ltd. Rewards Measures for

Intellectual Labor Achievement (Trial) . These initiatives aim to stimulate enthusiasm for independent innovation among scientific and technological

personnel. Moreover as a primary supporting entity New Hope Liuhe assisted New Hope Group in obtaining approval as a pilot enterprise for

autonomous professional title evaluation in Sichuan Province. This initiative enables the Group to independently conduct professional title evaluations

for senior animal husbandry technicians and senior veterinarians breaking down regional restrictions on professional assessments. It fosters

the development of more technical talents to lead enterprise growth within the Company and industry bolstering the support for scientific and

technological expertise.Indicator 2024 2023 2022 2021 2020

R&D investment amount (million RMB) 270.2823 209.58 302.13 291.89 267.31

Percentage of R&D investment (%) 0.26% 0.15% 0.21% 0.23% 0.24%

Participation in the Establishment of National Feed Grain

Number of R&D personnel 717 808 1094 1191 1013 Case Technology Innovation Center

Percentage of R&D personnel (%) 1.73% 1.66% 1.41% 1.49% 1.06%

As a global leader in the feed industry New Hope Liuhe actively embraces its role in driving industry innovation. The

Company has collaborated with leading enterprises in the feed industry to establish a joint venture Zhongnong Feed Grain

R&D Personnel Structure in 2024 Technology Innovation (Shenzhen) Co. Ltd. This entity serves as the operational platform for scientific and technological

advancement successfully applying for the National Feed Grain Technology Innovation Center. The center will focus on

Educational Level Age the feed industry conducting research on key core technologies of national strategic significance. It aims to promote the transformation and industrialization of research outcomes address common industry challenges and provide continuous

R&D personnel aged 30 innovative momentum for the high-quality development of China's feed industry.R &D p e rso nne l w i t h

doctoral degrees 25 and under 247

R & D p e r s o n n e l w i t h R&D personnel aged 31-40

master's degrees 264 332

R & D p e r s o n n e l w i t h R&D personnel aged 41 and

bachelor 's degrees or above 138

under 428

Key Technological Breakthroughs

Establishing Scientific and Technological Innovation Platforms Aligning with national strategic objectives and industry development needs New Hope Liuhe focuses on biological breeding disease prevention and

New Hope Liuhe focuses on developing high-level scientific and technological innovation platforms comprehensively addressing breeding feed control and feed formulation. The Company persistently addresses technical challenges targeting pain points and difficulties in frontline production

formulation disease prevention and control among other critical fields. The Company has established various scientific and technological innovation striving to achieve independent control over key core technologies. Several innovations have been granted patents including "an active capture device

platforms including the National Recognized Enterprise Technology Center Postdoctoral Research Workstation Key Laboratory of Digital Pig and and detection method for African swine fever aerosols" "a needle-free injector and its trigger" "a method apparatus equipment and medium for

Poultry Breeding Technology Innovation of the Ministry of Agriculture and Rural Affairs and Key Laboratory of Feed and Livestock and Poultry Product identifying the number of gestational sacs based on artificial intelligence" and "a method apparatus equipment and storage medium for constructing

Quality Safety Control of the Ministry of Agriculture and Rural Affairs. These platforms play a pivotal role in driving innovation constantly elevating the group pedigrees." These achievements demonstrate the Company’s solid innovation capabilities and continued R&D success.modernization level of the industrial chain.Premium Products New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Indicator Unit 2024 R&D Projects R&D Achievements

New patent applications in 2024 / 70 Application of Effectiveness: This strategy was applied to 5356 Duroc Landrace and Large White boars in 30 batches across 3 companies

Whole Genome in 2024. It improved selection accuracy by 20% to 30% without compromising genetic progress resulting in annual cost savings

—New invention patent applications / 27

Early Selection and increased revenue of approximately RMB 4.84 million. Additionally the proprietary 10K chip proved more cost-effective for

—New utility model patent applications / 43 Technology sequencing compared to 50K and 80K chips.New patents granted in 2024 / 116

Innovation breakthrough: Through artificial intelligence technology we independently developed intramuscular fat live

—New invention patents granted / 64 Development measurement software back fat and eye muscle intelligent measurement software and portable weight estimation software.and Application This achieved intelligent and automated determination of breeding pigs and localized replacement of determination software —New utility model patents granted / 52

of AI-based comprehensively enhancing the accuracy speed and scale of phenotypic data measurement.Cumulative total patents granted / 1426 Breeding Pig

Phenotype Effectiveness: Through digital and intelligent technology we facilitated the smart transformation and upgrade of pig farms

—Cumulative invention patents granted / 444 Determination replacing manual labor in phenotypic feature measurements. This reduced costs and significantly improved measurement

Technology efficiency and genetic evaluation accuracy thereby enhancing genetic progress strengthening breed selection and genetic —Cumulative utility model patents granted / 900 improvement and achieving continuous improvement in pig quality.—Cumulative design patents granted / 82

New software copyrights obtained in 2024 / 2 Problem: Most ASFV identification methods are limited to genotype I and II detection or differentiation between gene-

deleted strains and wild-type strains unable to simultaneously and rapidly meet the needs of genotyping and virus virulence

—Cumulative software copyrights obtained / 45 qPCR Method identification.for African

Cumulative trademarks / 878 Swine Fever Innovation breakthrough: We developed a detection method for ASFV genotyping and differentiation of wild-type and deletion

Virus (ASFV) mutants. Utilizing multiplex TaqMan fluorescent quantitative polymerase chain reaction (PCR) technology it can rapidly distinguish

Genotyping and virus types in a single reaction effectively improving detection efficiency and accuracy.Differentiation

of Wild-type Effectiveness: The method demonstrates exceptional sensitivity with a minimum detection limit of 2.29 copies/μL or 4.15 copies/

and Deletion μL capable of detecting trace amounts of viral DNA minimizing false negatives. It exhibits good reproducibility with low intra-

Mutants and inter-group coefficient of variation ensuring reliable detection results. Its application extends beyond laboratory research to

clinical diagnosis and epidemiological investigations providing a powerful tool for African swine fever prevention and control.Innovation breakthrough: Integrating the needs of different stages in the entire pig industry chain including breeding farming

slaughtering and consumption we established breeding goals for high reproduction feed efficiency rapid growth and superior

quality. We employed proprietary genomic combined breeding algorithms to cultivate specialized breed lines with distinct

characteristics. The aim is to achieve stable production of different breed line hybrid combinations across various market regions

in the future enhancing commercial pig production efficiency and pork quality.Cultivation of

"Xinxiwang"

New Breed Effectiveness: The proprietary genomic combined breeding algorithm has been successfully implemented within the system.Specialized breed lines have been preliminarily cultivated and are being disseminated within the system. Matching system

Lines and

combination trials are currently underway.Matching

Systems

Expected impact on the Company's future development: The cultivation of diverse specialized breed lines and matching

systems is anticipated to reduce production costs across different stages of the entire industry chain optimizing overall economic

benefits. Furthermore it will enable the Company to meet the differentiated demands of pig markets and consumers in various

regions establish product brands and constantly upgrade and optimize the Company's pig breeding system. This enhancement

of comprehensive breeding capabilities will contribute significantly to the efficient development of the pig industry.Case The Achievement Titled "Key Technological

Innovations in the Development and Safe Utilization

National-level breeding project acceptance of Non-Grain Feed Resources" Won First Prize in

the Heilongjiang Provincial Science and Technology

Progress Award

Major R&D Achievements in 2024

In collaboration with Northeast Agricultural University New Hope Liuhe carried out the

R&D Projects R&D Achievements project "Key Technological Innovations in the Exploration and Safe Utilization of Non-

Grain Feed Resources." This initiative developed innovative methods to enhance the

quality and efficiency of non-grain feed resources established a robust feed loss control

Application of Innovation breakthrough: Addressing the challenge of inaccurate selection and compromised genetic progress when technology system and created effective antibiotic alternatives for feed. The project

Whole Genome castrating boars before they reach standard weight we developed an early selection strategy. This involved using a proprietary achieved comprehensive improvements in feed resource expansion conservation and

Early Selection 10K liquid-phase chip for genetic testing of newborn boars calculating genomic breeding values and indexes and selecting safety addressing a critical industry challenge and effectively mitigating feed resource

Technology breeding subjects at 14 days of age. shortages and pressures on grain imports. In recognition of its contributions the project

was awarded First Prize in the 2024 Heilongjiang Provincial Science and Technology

Progress Award.Continues on next pagePremium Products New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Adhering to Breeding Ethics Stringent Quality and Safety Control

New Hope Liuhe rigorously adheres to relevant laws and regulations governing breeding research ethics including the Biosafety Law of the People's

Republic of China the Animal Husbandry Law of the People's Republic of China and the Measures for Scientific and Technological Ethics Review (for

Trial Implementation) . The Company conducts animal breeding with unwavering commitment to the principles of rigor authenticity and transparency.We resolutely avoid involvement in technological research and applications that contravene ethical standards or compromise animal welfare ensuring Food safety is of paramount importance. New Hope Liuhe adheres to the concept that "quality control is never trivial and safety responsibility is

that our technologies and products consistently serve sustainable development and societal well-being. paramount." The Company strictly follows the "three concessions three non-passes" principle implementing a fully monitored and traceable quality and

safety system from source to end. We consistently enhance the efficiency and timeliness of food safety and quality management contributing to the

We have established a Science and Technology Ethics (Review) Committee to ensure that the Company's innovation activities adhere to ethical Healthy China initiative through higher standards of food safety and nutrition.principles mitigating potential threats to the ecological environment human health and society. The committee comprises internal personnel with

exemplary professional knowledge and ethical standards including researchers and legal advisors. It is tasked with formulating and constantly

refining internal ethical norms and systems regarding the protection of basic biological rights privacy and data security. The committee oversees and Governance Strategy and Management Approach

reviews the legality and compliance of the Company's scientific and technological innovation projects. Regular dialogues are conducted with relevant

departments research teams and regulatory agencies to ensure that ethical practices align with the Company's overarching goals and requirements. Establish a Food Safety and Quality Management Department at the Conduct quality and food safety standard certifications to constantly

headquarters to oversee food safety affairs. Institute similar departments improve the quality management system.Research projects clinical trials or other related activities involving ethical considerations undergo rigorous review by the committee including initial in all branches and subsidiaries creating a comprehensive top-down

assessment of project materials and formal voting by committee meetings. To maintain the independence and impartiality of the review process safety management structure. Implement quality and safety management throughout the entire

committee members are prohibited from direct participation in the R&D of projects under review. External experts are invited to contribute broader production and operation process forming a closed-loop management

perspectives and expertise ensuring the scientific validity and fairness of decisions. Furthermore the committee conducts ongoing monitoring and Constantly refine internal management systems in accordance with system for biosafety control. Leverage digital technologies to enhance

compliance reviews of approved projects ensuring that the entire implementation process adheres to ethical norms and legal requirements. national and local laws and regulations. product traceability collaborating closely with farmers and suppliers to

elevate quality control standards.Impact Risk and Opportunity Management Indicators and Targets

Implement a three-tier quality inspection mechanism cascading food Aim for zero product recall incidents and negative product events

safety responsibilities to prevent quality and safety risks. implementing comprehensive quality management measures across all

operations.Strengthen supply chain quality and safety management to ensure that

raw materials from suppliers consistently meet quality standards.Enhancing Quality Management System

New Hope Liuhe rigorously adheres to the Food Safety Law of the People's Republic of China the Product Quality Law of the People's Republic of

China the Regulations on Live Pig Slaughter Management the Regulation on the Administration of Feeds and Feed Additives and relevant laws and

regulations in its operational locations. The Company has established a comprehensive food safety management system covering the entire value chain

based on internal policies such as the Food Safety Evaluation Management Measures of New Hope Liuhe Co. Ltd. Black Pig Product Food Safety and

Quality Management System and Food Crisis Management Measures of New Hope Liuhe Co. Ltd . This system encompasses raw material procurement

production control quality inspection product management sales management and personnel training. With a craftsman's dedication we maintain

vigilant food safety standards. Notably no major food safety or quality incidents occurred during the reporting period.Constantly Refining Management Systems

The Pig Sector has refined its Implementation Rules for Pre-sale Drug Residue Testing in Live Pigs (Trial) and Detailed Rules for Input Control in Free-

range Operations (Trial) . These improvements strengthen pre-emptive management of drug residues in pigs and standardize the use of purchased feed

and veterinary drugs enhancing proactive risk prevention in food quality and safety. Additionally the Feed Sector has developed 17 process standards

and operating norms alongside 18 standard operating procedures (SOP) clearly delineating responsibilities for quality management positions.Advancing Quality System Certification

The Company actively promotes quality and food safety standardization certification across its Sectors branches and subsidiaries. Regular internal

audits and management reviews of the organization's quality management system are conducted evaluating its performance effectiveness and

scientific validity to drive continuous improvement.Qianxihe is dedicated to building its premium black pork brand "Zhichu".Pig Sector: All Fresh Meat Division companies have secured ISO 9001 Quality Management System

certification and Hazard Analysis and Critical Control Points (HACCP) System certification (V1.0). Hebei

Qianxihe Meat Industry Co. Ltd. has obtained ISO 22000 Food Safety Management System certification

The selection and application of breeding techniques are grounded in scientific principles and practical needs while Shandong Qianxihe Food Co. Ltd. has achieved FSSC 22000 Food Safety System certification.rather than personal bias or profit-driven motives.Animal Breeding Emphasis is placed on the sustainability of pig breeding ensuring that breeding activities do not excessively Feed Sector: 35 companies have attained ISO 9001 Quality Management System certification with 13

deplete the environment and resources.securing ISO 22000 Food Safety Management System certification.When promoting low-protein diet technology rigorous measures are taken to ensure that the technology does Overseas Sector: All companies in the North Vietnam Region have obtained ISO 9001 Quality Management

Feed Grain-Saving Technology not adversely affect the quality and safety of animal products.When developing non-grain feed resources the Company conducts environmental impact assessments on soil System certification. The Egyptian company has secured both ISO 9001 and HACCP certifications while the

and water sources to prevent damage to the natural environment. Philippines Region has been certified by the Philippine Bureau of Animal Industry monitoring agency.KEY

PERFORMANCEPremium Products New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Intensifying Quality Inspection Efforts Raw Material Quality and Safety Management

The Company has implemented a Food Safety Quality System Audit Form and established a three-tier quality inspection system at the Group division The Company's Safety and Environmental Protection Center works in tandem with divisions of the Pig Sector to evaluate the product safety and quality

and subsidiary levels. This comprehensive approach covers approximately 400 inspection items across 9 modules including procurement R&D performance of raw meat suppliers. This assessment combines initial qualification reviews with on-site evaluations scrutinizing suppliers' adherence to

warehousing & logistics production quality control and system construction. This robust system promptly identifies issues supervises rectification and red-line warnings legal qualifications food safety and quality management systems HACCP plans and prerequisites and processing controls. Through

implements quality and safety responsibilities at all levels. Subsidiary departments and workshops conduct self-inspections while safety and quality dynamic management the Company mitigates supplier-related food safety and quality risks. In 2024 the Feed Sector achieved a 100% sign-up rate for

departments perform routine and specialized checks. Division safety and quality departments oversee problem rectification and conduct unannounced quality commitment letters with raw material suppliers.inspections. The Group's Safety and Environmental Protection Center performs at least one food safety system inspection per quarter for each company.Additionally the Company organizes video inspections involving the Feed Sector's Quality Management Center Quality Inspection Center and regional Biosafety Prevention and Control

quality control personnel. These inspections focus on the laboratories raw material warehouses and ingredient storage facilities of branches and

subsidiaries ensuring compliance with warehouse management standards and operating procedures. Biosafety Governance. The Company has established a Biosafety Management Manual and formed a dedicated biosafety management team.Operating under the direct leadership of the General Manager the Technical Director is responsible for conducting biosafety risk assessments on pig

farms promptly developing preventive measures and constantly refining biosafety plans. In 2024 a new Epidemic Prevention Commissioner role was

Elevating Quality Awareness Across the Workforce introduced with senior department heads overseeing lower levels to support and supervise epidemic prevention efforts. This initiative has significantly

The Fresh Meat Division of the Pig Sector has conducted extensive training for frontline personnel covering foreign object prevention product enhanced the efficiency and intensity of biosafety improvements.standards HACCP implementation and pest control. This initiative has enhanced employees' awareness and capabilities in product quality management.A total of 4297 attendances were recorded with 77.26 hours of training delivered. The Feed Sector has organized a professional skills enhancement Tiered Biosafety Management. Adopting the "great wall - checkpoint - guard" concept the Company categorizes pig farms and surrounding areas

program for high-potential quality management personnel resulting in 128 individuals obtaining High-Potential Feed Quality Management certification. into four risk levels: red orange yellow and green based on regional risk assessments. Movement of personnel and materials between different risk

A comprehensive testing capability certification for inspection and laboratory personnel has also been conducted with a 100% completion rate among levels requires specific checkpoint processing effectively preventing pathogen intrusion through level differentiation clear boundaries checkpoint

laboratory technicians. establishment and vector interruption.Biosafety Inspections. The Company employs a combination of checklist methods and cross-audits to ensure the effective implementation of preventive

measures. Detailed inspection guidelines and red-line issues are developed for operations likely to carry pathogens in different risk-level areas with

clear accountability assigned. Regular and random inspections are conducted using checklists complemented by cross-audits between regions to

HONORS New Hope Liuhe received the Food Safety Management Innovation objectively review biosafety implementation from multiple angles. This cross-inspection process also facilitates mutual learning and work improvement

Excellence Case award from China Food Safety News. among inspectors from different areas.Yang Ling Besun Agricultural Industry Group Corporation Limited was Disease Prevention and Control

honored with the title of National Food Safety Demonstration Unit. The Pig Sector has implemented positive pressure ventilation systems and other modifications in high-disease-risk areas for self-operated farms.Combined with optimized epidemic prevention processes these measures have significantly improved winter epidemic prevention effectiveness.Liaoning Qianxihe Food Co. Ltd. was recognized as a 2023-2024 Catering

Industry Gold Supplier. The Feed Sector maintains strict separation between living areas production areas dispatch areas and raw material areas achieving unidirectional flow

with dedicated disinfection channels. Measures include three-level washing and disinfection for feed vehicles entering plants daily environmental and

Shandong Qianxihe Food Co. Ltd. earned the titles of Best Brand for production process sampling and testing and raw material testing at animal health centers before use. These stringent controls at each production

stage ensure the provision of safe and reliable feed products to farmers.Chinese Group Meal Supply and Food Safety Meat Brand.The Company's subsidiaries - Guangdong Xinhao Zhenghe Agriculture and Animal

HONORS Husbandry Co. Ltd. Xiangzhou Xinhao Agriculture and Animal Husbandry Co. Ltd.and Laibin Xinhao Agriculture and Animal Husbandry Co. Ltd. - have successfully

passed the Ministry of Agriculture and Rural Affairs' disease-free zone audit.Full Life Cycle Management

New Hope Liuhe implements comprehensive quality and safety management throughout its entire production and operational processes. The

Company has established a closed-loop biosafety control system and leverages digital technologies to enhance product traceability. By collaborating

with farmers and suppliers the Company aims to elevate overall quality control standards thereby safeguarding product quality and safety. Implementing positive pressure ventilation upgrades for pig farmsPremium Products New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Slaughter Quality and Safety Delivering Premium Healthy Pork

The Company strictly adheres to the Regulations on Live Pig Slaughter Management reinforcing quality management throughout the entire process New Hope Liuhe's Fresh Meat Division of the Pig Sector consistently develops its proprietary Zhichu Black Pork brand employing an integrated self-

from pig entry to product dispatch. Each facility conducts individual inspections on slaughtered pigs ensuring comprehensive coverage. Farms and breeding and self-slaughtering black pig product supply model with stringent management of breeding environments feed quality and veterinary drug

slaughterhouses collaborate on rigorous washing disinfection and verification of pig transport vehicles. Systematic control of breeding procurement use. Zhichu black pigs are nourished with specialized black pig feed featuring reduced energy and increased fiber and protein content in the late-stage

production logistics and sales ensures consistent meat product quality and safety. feed. With an average breeding period exceeding 260 days this approach achieves an optimal ratio of lean meat to fat resulting in superior taste and

nutritional profile meeting consumer demands for high-quality pork products.Product Traceability Management

The Company has established a comprehensive digital quality control platform for food enhancing product traceability management. Pigs are batch-

managed by vehicle and farmer traceable to their source and slaughter details. Carcasses are individually barcode-managed traceable to pig source

batch and product destination. Cut products and by-products are barcode-managed by production date traceable to raw material source batch and HONORS

product destination. In 2024 the Company initiated source tracing for issues such as needles and abscesses enabling feedback of slaughterhouse

quality information to the breeding operations effectively enhancing breeding quality control capabilities.Qianxihe's Zhichu Black Pork was honored with the 2024 China International

Product Recall Management Meat Industry Week Special Recommended Product and the Guangdong-Hong

The Company has implemented a Product Recall Management System clearly defining recall procedures and departmental responsibilities and division Kong-Macao Greater Bay Area 2024 Brand Pork Excellence Award.of labor. During product recalls reports are submitted to the Group and local food safety authorities identifying customer names locations product Qianxihe's Pork Belly Series won the Gold Award for Quality Livestock Products

types batch numbers and quantities of recalled products. Public announcements of recall information are made promptly upon approval from the

Group and the local government. To ensure the effectiveness of the recall system annual mock recall drills are conducted to guarantee timely response at the 39th (2024) Shandong Animal Husbandry Expo.and proper execution.KEY

PERFORMANCE

In 2024 no product recall events or negative product incidents occurred.Developing Healthy Food Products

New Hope Liuhe places a strong emphasis on consumers' growing demand for health and nutrition. The Company enhances animal well-being

and meat nutritional quality through innovative feed formulations and scientific breeding methods actively addressing the diverse dietary needs of

consumers.Enhancing Livestock and Poultry Nutrition and Health

The Company has established an integrated "nutrition + health" service system tailoring nutritional solutions for various regions breeding models

and species requirements to improve animal nutrition and overall health. During the reporting period we introduced the Management Regulations

for Standard Use of Class B Feed Raw Materials revising 62 indicators and incorporating 25 new raw material standards. Leveraging digital systems

we implemented standardized management for over 2500 feed raw material master data entries strengthening end-to-end quality control of raw

materials and supporting the R&D of customized feed nutrition formulas.Addressing the nutritional needs of diverse regions seasons and pig breeds we have integrated research findings on

commercial pig protein energy amino acid and calcium-phosphorus requirements feed intake regulation and raw material

Swine Nutrition utilization. Through multi-stage precision nutrition formulation technology we provide optimal nutrition for pig herds. In

2024 we launched the M-NRC (Micro-Nutrient Requirements Criteria) animal vitamin and trace element nutrition standards

introducing the Xiwangxin series of products to enhance pig nutritional status.For broiler chickens we have implemented a novel "corn grits + pellet feed" process resulting in increased market weight 7-8g

gizzard weight gain significantly reduced proventriculus inflammation rates and markedly improved intestinal health. For meat

Poultry Nutrition ducks we have achieved substantial improvements in intestinal health and our functional fiber-regulated intestinal health

nutrition program was awarded the second prize in the Qingdao Science and Technology Progress Award.Focusing on intestinal health and immune regulation we have introduced composite animal health products containing

Animal Health probiotics enzymes and plant extracts. These innovative products improve animal intestinal microecological balance

Products effectively reducing the incidence of livestock and poultry diarrhea (clinical trials demonstrated a reduction of over 30%)

thereby decreasing reliance on antibiotics.Qianxihe is dedicated to building its premium black pork brand "Zhichu".Premium Products New Hope Liuhe Co. Ltd. 2024 Sustainability Report

The Company actively develops antibiotic-free meat products strictly prohibiting the use of antibiotics in water feed feed ingredients and additives

and processing materials throughout the breeding process. Beijing Qianxihe Foodstuff Co. Ltd. Hebei Qianxihe Meat Industry Co. Ltd. and Shandong Improving Service Quality

Qianxihe Food Co. Ltd. all under the Fresh Meat Division have obtained multiple certifications for various antibiotic-free products encompassing

white pigs black pigs chilled fresh pork and edible pig by-products. The Company is committed to promoting and expanding antibiotic-free breeding

certification across its entire system consistently offering consumers a diverse range of antibiotic-free meat products.New Hope Liuhe places customer needs at the forefront of its operations with customer satisfaction as its ultimate goal. The Company is committed

In December 2024 the departure of Longhai New Hope's live pig transport vehicle under customs supervision marked the first land transportation of to consistently improving service quality adhering to responsible marketing practices and eliminating false advertising. Through effective customer

high-quality live pigs from Fujian Province to Hong Kong. This milestone also increased the number of New Hope Liuhe's pig farms qualified to supply communication we aim to gain customer approval and long-term support fostering a mutually beneficial relationship with our clients.Hong Kong and Macao to three further optimizing the Company's sales network in key pork consumption regions. Looking ahead the Company will

continue to provide safe healthy and premium pork products contributing to the stable food supply and safety in Hong Kong and Macao. Governance Strategy and Management Approach

Constantly refine the customer service system by implementing internal Consistently optimize service processes expand pre-sale in-sale and

management policies such as the Evaluation and Management Measures after-sale service offerings implement tiered customer management

for Marketing Personnel and Regulations for Customer Management in and maintain open communication channels to enhance service quality.Pig Sales .Establish diverse communication channels to ensure seamless

interactions with customers promptly addressing and resolving

customer inquiries and complaints.Impact Risk and Opportunity Management Indicators and Targets

Address various customer demands through standardized service Implement performance evaluation metrics including customer

processes and diversified service offerings. acquisition numbers customer churn rate customer satisfaction

customer complaint rate and sales volume to assess sales and

Identify potential risks in the marketing domain regulate sales personnel customer service personnel.behavior and conduct responsible marketing with a conscientious

approach. Constantly monitor key performance indicators such as customer

complaint handling rate and customer complaint resolution rate.Elevating Service Capabilities

New Hope Liuhe prioritizes customer needs consistently enhancing service quality through optimized processes expanded pre-sale in-sale and after-

sale service offerings tiered customer management and open communication channels. The Company aims to provide timely responses to customer

Antibiotic-free product and farm certifications demands delivering professional high-quality differentiated and attentive service experiences.Customer Classification Management

Teams across Sectors implement tiered management based on customer segmentation offering tailored sales cooperation schemes.Local Farmers or Small-scale Offer flexible small-batch orders and streamlined purchasing processes. Provide online support

Distributors and breeding technology consultations to assist customers in reducing procurement costs and improving breeding efficiency.M e d i u m - s c a l e Fa r m s o r Deliver standardized feed product solutions. Combine regular follow-ups market analysis and

Regional Agents preferential pricing to support customers in enhancing breeding efficiency and expanding market

share.Large-scale Aquaculture Provide customized feed formulations dedicated sales representatives priority supply and

Farms or Distributors technical support to ensure products meet large-scale breeding requirements. Maintain

consistent supply and service through long-term cooperation agreements.Live pig shipment departure scene to Hong KongPremium Products New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Optimizing Service Experience

The Fresh Meat Division and live pig sales department have implemented dedicated 400 customer complaint

Improving on-site delivery and after-sales service quality. The Company proactively arranges direct delivery to address customers' temporary hotlines prominently featured on product labels and applets ensuring customers have clear access to complaint

transportation challenges. Additionally it comprehensively refines on-site deduction types and standards for non-premium pigs to balance quality channels.discrepancies and boost customer satisfaction. At delivery sites we strictly control the mixing of underweight pigs to ensure consistent average Sales representatives maintain regular communication with distributors compiling and analyzing daily market

weight and uniformity. We also swiftly coordinate compensation for verified excessive post-sale losses. To maintain stable partnerships we implement Pig feedback. This includes complaint timings essential customer information the content of complaints and specific

negotiated compensation for high mortality issues within 14 days post-sale for premium piglets supplied to the Group's breeding customers. Sector details of the products in question. The safety and quality department at each branch oversees the production

department's improvement initiatives based on this feedback. For customer complaints the production department

Establishing in-house animal health testing laboratories. Internally the Company conducts real-time monitoring of animal diseases to promptly conducts thorough investigations and develops tailored resolution strategies.identify epidemic trends and provide a scientific basis for effective prevention and control measures. Externally precise and efficient disease detection

services are offered to partnering farmers effectively mitigating the impact of diseases on their operations through accurate culling and comprehensive

biosafety measures. A specialized 400-telephone customer service team has been established comprising customer service

representatives and follow-up specialists to address customer needs promptly.Providing professional services. The Overseas Sector has established specialized service teams including an aquaculture service team a Green Imprint Feed A robust system has been implemented to generate categorized work orders for purchasing requirements severe

pig feed specialized team a veterinary service team a deep cleaning team and a farm assessment team. These teams offer a range of services complaints general complaints and special incidents. Each category has defined processing procedures to ensure Sector

including health management animal health testing farm cleaning and disinfection water line maintenance and technical problem-solving assistance efficient resolution of customer needs.to help customers effectively utilize products. Customer follow-ups are conducted to assess satisfaction levels. If a follow-up reveals dissatisfaction it is deemed

an unsuccessful resolution triggering an escalated work order and reprocessing until customer satisfaction is

achieved and the system work order can be closed.Expanding Online Channels

Overseas Dedicated channels for receiving customer complaints have been established. Each complaint is meticulously tracked

Guided by the national "Internet+" initiative and the Company's comprehensive "Three Alls and Four Transformations" digital strategy New Hope Liuhe is Sector and processed to ensure timely response and resolution within specified timeframes. Resolution outcomes are swiftly

actively expanding its online business operations. To achieve these goals the Company is fully leveraging cutting-edge technologies including mobile communicated to customers with subsequent follow-ups to verify complete problem resolution.internet applications big data analytics and cloud computing platforms. This approach aims to provide customers with efficient transparent and high-

quality services.KEY Pig Sector

PERFORMANCE Indicator Unit Feed SectorThe Company has implemented online auction sales for premium fattening pigs retired breeding pigs and high-quality Live Pig Sales Fresh Food Business

piglets. We update the cnhnb.com platform daily with comprehensive pig source information including quantity weight

breed video footage and delivery locations ensuring fairness for all partnering customers. This platform enables Number of customer complaints cases 615 83 65

interested customers to bid and purchase directly online with sales contracts transitioning from paper to digital formats

Pig streamlining processes and enhancing service efficiency. Customer complaint handling rate % 100 100 100

Sector

In 2024 we achieved 89% of our Pig Sector revenue through online sales. Since February 2024 we have facilitated the Customer complaint resolution rate % 82 100 100

online sale of 775000 high-quality piglets with 785 customers nationwide participating in auctions establishing an

excellent procurement platform for piglet buyers.Satisfaction Management

The Company has developed an integrated "e-commerce platform + livestream e-commerce" operational model To gain a comprehensive understanding of customer satisfaction with New Hope Liuhe's products and services we conduct in-depth satisfaction

alongside a F2C (Factory to Consumer) business strategy. We specialize in premix feed to support small and medium- surveys. These assessments focus on multiple key dimensions including product quality complaint handling efficiency and effectiveness and delivery

sized farmers addressing critical challenges in farming techniques cost management and information access. We accuracy. Tailored survey questions are added based on different sectors and customer types to ensure relevance and precision. Based on the survey

Feed organized 33 comprehensive farming seminars and 156 product livestreams to enhance farmers' management skills and results we follow up on identified issues and implement targeted improvements. Customer satisfaction evaluations and survey outcomes serve as a

disease prevention capabilities. Our efforts have assisted small and medium-sized farmers in reducing intermediary costs vital foundation for enhancing customer relationship management.Sector by 10%-15%.In 2024 we attained 9% of the Premix Feed Division's external sales through online channels becoming a leading

merchant on major e-commerce platforms. We have established partnerships with nearly 6640 farmers nationwide

serving approximately 700000 pigs throughout the year.KEY

PERFORMANCE

Customer Complaint and Satisfaction Management The Fresh Meat Division of the Pig Sector

New Hope Liuhe consistently enhances its customer feedback and complaint achieved an average customer satisfaction rate

resolution mechanisms expands diverse communication channels and regularly

conducts multi-dimensional satisfaction surveys. This approach allows the Company of 96.46% surpassing the target of 96%.to promptly address customer needs and provide attentive service for increased

satisfaction.Customer Complaint Handling HONORS

The Company has established a centralized customer service center with multiple

platforms for consumer interaction including a dedicated 400 customer service

hotline WeChat official account and official online store. It has implemented Shandong Qianxihe was recognized as a

specialized service teams within each Sector tailored to specific business features

standardizing customer inquiry and complaint processes to ensure efficient Consumer Satisfaction Brand.handling of consumer feedback.Premium Products New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Building a Digital Smart Breeding Ecosystem across the Entire Industry Chain

Digital Empowerment

Feed Silo Weighing Technology: Implement stable sensors and robust algorithms for remote

New Hope Liuhe is actively advancing the digital transformation and upgrading in the agricultural and animal husbandry industry. The Company calibration of sensor and feed silo operational status monitoring. This system enables centralized

is committed to its "Three Alls and Four Transformations" digital transformation strategy which is underpinned by the integration of business data management of feed silo data ensuring feed traceability minimizing waste and preventing fraudulent

and management. This approach aims to develop a digital smart breeding ecosystem across the entire industry chain. By implementing digital and Feeding activities.intelligent technologies in breeding sites pig farm management and corporate control the Company is making smart pig farming the new standard Management

and leveraging new quality productive forces as a catalyst for growth. Intelligent Precision Feeding System: Utilize cutting-edge technologies including computer systems

Pig sensor networks and control mechanisms to achieve precise control and management of animal feed

Digital Transformation Farm distribution.New Hope Liuhe's digital transformation strategy focuses on achieving intelligent key equipment digitalized business scenarios online functionalization Management

of all data and proactive management of the entire process. This "Three Alls and Four Transformations" approach guided by the integration of business Networked Needle-free Injection: Employ needle-free injectors that use controlled pressure to

data and management involves the extensive application of digital and intelligent technologies throughout all stages of poultry and livestock breeding Immunization administer vaccines intradermally to pigs. This technology reduces vaccine usage increases individual

including feeding health checks and disease prevention. This comprehensive approach drives continuous improvements in production management Management productivity eliminates needle consumption minimizes stress in pigs prevents cross-infection and

and biosafety control resulting in enhanced operational efficiency and strengthened core competitiveness. enhances food safety. Integration with IoT functionality and a digital immunization platform enables

effective management of the immunization process.Hongtong · SAT Nutrition Estimation System: Leverage dynamic model algorithms to combine

Governance Strategy and Management Approach the Company's 40-year animal nutrition database with global best practices. This innovative system

provides a visual decision-making tool enabling farmers to monitor livestock growth curves

Prioritize digital transformation as a key strategic initiative to explore Implement the "Three Alls and Four Transformations" digital environmental parameters and nutritional requirements in real-time facilitating a transition from

new areas of development foster new drivers of growth and transformation framework underpinned by the integration of Feed experience-based to data-driven feeding practices.enhance competitive advantages. business data and management to build a digital smart breeding Formulation

ecosystem across the entire industry chain enabling dynamic Hongtong · NHF Formula System: Incorporate 396 nutritional model parameters including raw

control and standardization across all production stages. material price fluctuations regional nutritional standards and animal growth stages into a dynamic

optimization matrix. This system precisely tailors feed formulas to diverse breeding scenarios and

Impact Risk and Opportunity Management Indicators and Targets integrates a carbon footprint tracking module optimizing both nutritional efficiency and environmental

sustainability.Consistently identify digital transformation opportunities throughout Establish qualitative goals that promote the seamless integration

the research breeding production supply sales and service of business operations with digital technology evaluating the Feed Plant Logistics Platform: Seamlessly integrate personnel vehicles and business processes to create

processes to standardize all production stages and optimize progress and effectiveness of digital transformation initiatives Production an efficient intelligent operational loop. Following customer authorization drivers can schedule plant

operational execution. through improvements in operational efficiency and core arrivals online utilizing smart recognition automated weighing and self-service documentation. This

competitiveness. enhancement significantly improves customer experience and operational efficiency while mitigating

African swine fever transmission risks by minimizing direct human contact.Demand Planning Management System: Employ digital analytics to synthesize market dynamics

Supply with production realities generating precise and efficient demand forecasts. This system effectively

Management prevents overproduction and supply shortages while leveraging big data analytics and other cutting-

edge technologies to refine sourcing strategies and mitigate potential risks.In 2024 New Hope Liuhe successfully established direct system connections with Yihai Kerry Arawana

Holdings Co. Ltd. and C&D Group creating a streamlined manufacturer-trader interface. This

integration enables real-time data sharing and seamless business operations significantly enhancing

supply chain collaboration efficiency.Third-generation Portable Weight Estimation Equipment Based on Machine Vision: Combine

AI algorithms with big data training and non-contact photographic weight estimation to deliver

a compact integrated and highly efficient solution. This technology enhances weight estimation

Data accuracy and efficiency while reducing biosafety risks and maintenance costs. Real-time data

Analysis traceability via cloud platforms prevents weight discrepancies and fraudulent activities in sales

processes.Corporate

Management

and Control

Feed CRM System: In 2024 157 complete feed companies fully implemented this system across

the Feed Sector. By consolidating extensive customer data it creates a comprehensive and accurate

Order map of the Feed Sector's customer base tracking customer dynamics and business information in

Management real-time. This robust system provides critical data support for managing over 6500 daily orders

significantly enhancing the precision and adaptability of sales planning.New Hope Liuhe establishes direct system connections with C&D Group.Premium Products New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Information Security Governance Structure

Case AI-Powered Weight Estimation Revolutionizes Smart Pig Farming The Company has established a Data Security Management Committee and a Confidentiality Committee at the operational management level

to coordinate New Hope Liuhe's information security and data management efforts. Confidentiality coordinators are appointed across various

To address longstanding challenges in pig farming such as the time-consuming and labor-intensive process of herding departments creating a comprehensive information security management system that ensures the effectiveness and continuous improvement of

pigs to scales inaccuracies in visual weight estimation and stress-induced responses in pigs due to handling New Hope information security practices.Liuhe has developed a suite of intelligent tools. A standout innovation is the third-generation portable weight estimation

device. This technology allows for rapid weight calculation of pigs without the need to move them from their pens. With a Information Security Governance Structure

simple scan the device can determine a pig's weight in under 5 seconds boasting an impressive 98% accuracy rate while

significantly reducing biosafety risks. Moreover the precise and real-time data collection and recording capabilities of this

technology provide crucial insights that support advanced farming practices including precision feeding optimized feed type Data Security Management Develop and implement information security strategies standards and processes addressing national secrets

adjustments strategic pig pen transfers and pre-sale feed management. Committee and Confidentiality corporate trade secrets and personal privacy information. Regularly assess major information leakage risks in business

Committee processes and propose targeted improvement measures.Departmental Confidentiality Oversee information security management within their respective departments ensuring the implementation of

Coordinators information security policies and systems.Information Technology Protection

At the technical level the Company implements cutting-edge information security protection technologies. By bolstering data control and network

security protection a comprehensive multi-layered information security defense network has been established ensuring the thorough safeguarding of

information and data integrity.Enhanced Data Control Implement an automated periodic backup mechanism for core business system data ensuring data integrity and

robust disaster recovery capabilities.Network Security Protection Collaborate with network information joint defense mechanisms maintaining real-time threat IP updates to enhance

proactive defense capabilities.Information Security and Privacy Protection Information Security Management

New Hope Liuhe prioritizes information and network security strictly adhering to the Personal Information Protection Law of the People's Republic At the management level the Company enhances its information security management through regular risk identification and assessment reinforced

of China the Data Security Law of the People's Republic of China and other relevant data protection standards. The Company has implemented emergency management protocols and the implementation of comprehensive security training and awareness programs for both employees and

comprehensive guidelines including the Information Security Management Measures Terminal Security Management Measures Data Security suppliers.Management Measures and Emergency Response Plans . These initiatives constantly enhance internal information and network security management

systems reinforcing the foundation of data privacy protection and network information security.Conduct annual information security level protection to ensure compliance implementing necessary evaluations

Governance Strategy and Management Approach Information Security and rectifications.Risk Assessment Establish a routine vulnerability scanning mechanism regularly perform system security assessments and

Establ ish a Data Security Management Committee and a Implement the principle of least privilege strictly limiting internal implement closed-loop management for vulnerability remediation.Confidentiality Committee to oversee New Hope Liuhe's information access to employee and customer privacy information.security management operations. Information Security Reinforce emergency preparedness verifying the feasibility of emergency plans and refining practical response

Rigorously control the application development and deployment Emergency Management skills through scenario-based simulations.Designate confidentiality coordinators across various departments process implementing data anonymization and encryption for

creat ing a pervas ive informat ion secur i ty management personally sensitive information during network storage and

Enhancement of Information

organizational system to constantly enhance the Company's transmission bolstering information security assurance capabilities. Implement a normalized security education and training mechanism to systematically improve overall security

Security Awareness

information security management capabilities and standards. awareness and protection capabilities across the organization.Regular ly disseminate information secur ity regulat ions

requirements and cases through a dedicated WeChat official

account complemented by specialized information security training

to raise awareness among all employees.KEY

Impact Risk and Opportunity Management Indicators and Targets PERFORMANCE

Identify critical points in business processes susceptible to Monitor key performance indicators including the number and

information leakage and formulate clear response procedures. Information security and privacy protection disputes/customer privacy leakage incidents:readership of articles published on the information security 0

WeChat official account as well as any information security and

Implement robust protection measures for employees' and privacy protection disputes/customer privacy leakage incidents

customers' personal data including basic information identity ensuring effective implementation and measurable outcomes of

details biometric data educational and professional records health relevant initiatives.information and financial data to mitigate information leakage risks.Green Industry Practices New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Nurturing Natural

Ecosystems through

Green Industry

Practices

Contributing to the

UN 2030 SDGs

New Hope Liuhe pig farms in Vietnam operate on an ecological circular farming model.Green Industry Practices New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Sustainable Agriculture Animal Welfare Assurance

New Hope Liuhe has established a comprehensive animal welfare management system and standards exploring new pathways for sustainable farming.New Hope Liuhe is firmly committed to sustainable development exploring innovative integrated crop-livestock farming models tailored to local The Company focuses on enhancing the professional skills and awareness of its employees to better meet the physiological and psychological needs of

conditions. The Company actively promotes animal welfare protection and addresses the dual challenges of resource scarcity and increasing food animals effectively ensuring animal welfare.demand through natural solutions and systematic synergies aiming to achieve both ecological and economic benefits.The Company conducts annual audits of its animal production operations. In 2024 it performed 100% comprehensive audits of its live pig slaughter

processing companies focusing on procurement and sales aspects while constantly improving and optimizing animal welfare protection management.Ecological Circular Farming

New Hope Liuhe actively responds to the national call for accelerating the development of a circular economy. The Company vigorously promotes the Ensuring Animal Welfare

organic integration of pig farming and crop cultivation implementing and constantly expanding the "pig - biogas - fertilizer - fruit/vegetable/grain" We strictly adhere to the five basic principles of animal welfare regulating the use of medications in animal husbandry and ensuring animals are well-

circular agriculture model. This approach involves recycling fermented manure as fertilizer and reusing reclaimed water for irrigation achieving zero treated in terms of living environment feed nutrition and health management.pollutant discharge while promoting soil improvement. By sequestering carbon in plants and soil it significantly reduces the environmental impact of

livestock farming driving the development of ecological circular agriculture.KEY

PERFORMANCE

Provide ample exercise space and comfortable resting environments. Enhance air filtration systems and spray disinfection pipeline

systems to improve the health environment in pig houses.Fermented manure fertilizer produced: 104800 tons Ensure feed is clean fresh and free from mold or contamination with appropriate nutrition for each growth stage.Reclaimed water returned to farmland: 15.7532 million tons Basic Ensure sufficient water supply during summer heat and adequate ventilation maintaining overall environmental stability.

79000 30000 Welfare

Conduct regular deworming and fly control to ensure pig health and environmental hygiene.Land designated for nutrient recycling: mu including mu of open-field cropland Utilize intelligent environmental control to maintain appropriate day-night temperature differences avoiding disease fluctuations

2.5759 due to excessive temperature changes.Fresh fruits and vegetables produced: million kg Place enrichment toys implement three-point positioning and regularly clean moldy feed to keep pens clean and dry.

Biological carbon sequestration achieved during the year: approximately 94500 tons of CO2 equivalent

Maintain optimal temperatures of 15-25° C in boar houses.Minimize noise from environmental equipment operation and human disturbances to avoid stress from excessive noise.Breeding

Provide back rubbing sitting support and udder massage for sows during breeding.Process

Case Use non-irritating disinfection (clean water) and gentle cleaning of sows' reproductive organs to prevent uterine infections and Guangxi Xiangzhou Integrated Water and Fertilizer Project Welfare other diseases.Ensure proper feeding and rest after breeding avoiding large-scale group transfers in early pregnancy.In the context of developing circular agriculture New Hope Liuhe pioneered an integrated water and fertilizer project in

Xiangzhou Guangxi. The Company's three pig farms under Xiangzhou Xinhao Agriculture and Animal Husbandry Co. Ltd.process all waste through stringent standards and advanced technologies to produce high-quality fermented manure Pre-mix groups during fostering to familiarize scents and prevent sows from biting piglets.Piglet

fertilizer. This fertilizer is then distributed through an irrigation network to nearly 10000 mu of sugarcane plantations Supplement appropriate microorganisms inorganic salts iron etc. according to growth stages.in the surrounding area integrating irrigation and fertilization. This integrated crop-livestock farming approach not Welfare Provide at least 1 square meter of space per growing-finishing pig; maintain temperatures of 15-25° C and relative humidity of 60-

only effectively improves resource utilization efficiency in pig farming and reduces the environmental impact of manure 70%.discharge but also increases the annual income of surrounding farmers.Organize veterinary training to improve comprehensive disease management capabilities. Conduct blue ear disease eradication in

selected pig farms use pseudorabies-negative breeding for new herds and initiate pseudorabies eradication projects in breeding

Health farms.Welfare Implement combined vaccinations in pig farms to reduce the number of injections.Introduce needle-free injection technology to minimize immunization stress.Focus on researching animal nutritional needs and provide balanced comprehensive feed to meet the nutritional requirements for

animal growth avoiding reliance on growth-promoting substances.Prohibit high-intensity assisted farrowing; use plastic pig paddles instead of iron rods or electric prods when moving or transferring

pigs allowing them to move freely.Stakeholder Voice Ensure gentle and calm handling during group transfers paying attention to the number of pigs to avoid crowding in passageways." This year I p lanted over 1 000 mu of Perform injections simultaneously in corresponding pig pens on both sides of the same building to offset mutual stimulation.sugarcane all using integrated water and Psychological Implement protective measures during injections to reduce immunization stress and psychological trauma.fertilizer technology. The sugarcane is growing Welfare Provide food immediately after injections.really well. Yields could go up by 20% and I'm Mitigate stress caused by feed restriction during pregnancy by adding dietary fiber to the diet increasing sows' sense of fullness

expecting more than 7 tons per mu." expanding intestinal capacity and addressing constipation issues.- Feng Wei a large-scale farmerGreen Industry Practices New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Standardizing Medication Use Enhancing Management Systems. The Company has formulated and rigorously implemented the Environmental Protection Management System

clearly defining the environmental protection organizational structure and responsibilities. Based on key environmental management tasks in each

Reducing Preventive Antibiotic Use. The Company is committed Sector it has developed a series of internal management protocols to systematically promote environmental protection and green development.to minimizing antibiotic use and residues through enhanced farming Each branch and subsidiary has established an Environmental Protection Responsibility System delineating environmental protection duties for each

environments technological advancements and improved management position. In 2024 the Company introduced new environmental protection management systems including the Pig BG Farm Water Use and Disposal

practices. We have implemented stringent antibiotic usage management Assessment System and the Pig Sector Environmental Administrative Penalty Accountability Management Measures (Trial) to more effectively raise

protocols and processes ensuring rigorous control over all medication employees' awareness of environmental management and mitigate the Company's environmental risks.administration. Throughout the farming process we prioritize disease

prevention by optimizing living conditions strengthening husbandry Conducting Environmental Performance Assessments. The Company has implemented the Environmental Protection Performance Assessment

management and boosting animal immunity to reduce disease risks and and Reward & Punishment Management Measures linking environmental assessments to management's performance bonuses. It sets "zero pollution"

minimize antibiotic use and residues. By implementing precise medication as the environmental assessment target for each sector BU and imposes performance deductions on relevant management and key personnel for

strategies and robust disease control measures we ensure more targeted environmental pollution incidents.and rational antibiotic use. This approach not only enhances the safety

and quality of our livestock products but also helps mitigate the impact Raising Environmental Awareness. The Company conducts the Pig BG Environmental Station Personnel Technical Certification covering topics such as

of antibiotic residues on the environment and human health. Needle-free injection wastewater treatment processes analysis and resolution of abnormal issues fermentation tank operation and maintenance environmental protection

equipment operation and maintenance and interpretation of environmental management systems. Through online learning examinations and

Regulating Veterinary Drug Use. The Company adheres strictly to relevant guidelines and requirements issued by the Ministry of Agriculture and Rural defense we enhance the environmental management capabilities of frontline employees in the Pig Sector. During the reporting period 155 employees

Affairs. We refrain from adding prohibited veterinary drugs to feed products and pledge not to use growth-promoting substances (e.g. hormones) in participated in the training achieving a pass rate of 87.9%.animals. When Chinese herbal medicines are permitted in feed we adhere rigorously to the prescribed dosages in the instructions. Additionally we are

actively developing more environmentally friendly and safer bio-ecological feeds to improve the food safety of animals. Environmental Incident Prevention and Response. The Company prioritizes environmental risk management and has formulated the Environmental

Risk Warning and Response Mechanism and the Comprehensive Environmental Inspection System to enhance environmental management. Despite

In 2024 the Company reported no incidents of non-compliant veterinary drug use. these efforts 19 environmental penalties occurred in 2024. We have thoroughly reflected on these incidents and taken them as cautionary examples

treating environmental compliance as an inviolable red line and bottom line. We continue to refine our environmental management system enhance

management capabilities and focus on key improvements. We are strengthening our coordinated response capabilities for environmental risk events

improving handling efficiency and clarifying responsibility allocation. For details on administrative penalties and corrective measures imposed by

ecological and environmental authorities due to environmental incidents please refer to the "Environment and Social Responsibility" section of the New

Hope Liuhe Co. Ltd. 2024 Annual Report .Water Resource Management

Sustainable Operations Water is a crucial resource in pig farming and its effective management can enhance breeding efficiency while mitigating environmental impact. New

Hope Liuhe prioritizes the management and efficient use of water resources strictly adhering to the Water Law of the People's Republic of China and

related regulations. The Company has implemented clear water usage plans and strives to conserve water resources in both production processes and

New Hope Liuhe is dedicated to green development strictly complying with national environmental protection laws and regulations including the daily operations promoting water recycling and reducing consumption. The water resources used in the Company's production and operations primarily

Environmental Protection Law of the People's Republic of China and the Environmental Impact Assessment Law of the People's Republic of China. come from municipal water supply surface water and groundwater with no significant environmental impact in terms of water source selection.The Company constantly enhances its environmental management system vigorously promotes clean production and rigorously controls pollutant

emissions taking concrete actions to contribute to the Beautiful China initiative.Environmental Management Water Resource Use Planning

New Hope Liuhe incorporates environmental management as a strategic issue at the Board-level committees. The Company encourages subsidiaries

to pursue environmental system certifications implements rigorous environmental management standards standardizes environmental operational Indicator Unit 2024 Target 2024 Performance 2025 Target

management and establishes long-term environmental protection mechanisms.Pig farming water intensity m3/head 2.55 2.5 2.45

Sp

l a u g htering and meat rocess i n g w a t e r i n t e n s i t y m3/head 0.41 0.35 0.35

KEY

PERFORMANCE

Total investment in environmental protection (excluding depreciation): RMB 152.6553 million

Reducing Water Usage Risks. We conduct comprehensive water quality tests quarterly at key sites. For substandard water quality root cause analysis

is performed and measures such as turbidity treatment and disinfection are implemented to ensure that on-site water supply needs are met.Improving Management Frameworks. The Company has established a three-tier environmental management organizational structure: Corporate Strengthening Water Usage Monitoring. We launch upgrades to smart water meters across all facilities optimizing water well and storage tank

Safety and Environmental Protection Center of Engineering Operations Department - Pig Sector Safety Operations and Planting Environmental metering. Water usage is separately measured for sow farms fattening farms and environmental protection areas. Monthly data classification and

Protection Department - Squad Planting Environmental Protection Departments. These three levels provide mutual oversight and support ensuring the analysis are conducted at each site to constantly optimize water management. Daily inspections are intensified to eliminate leaks and reduce water

systematic implementation of environmental protection initiatives. waste.Conserving Production Water. We adjust pressure reduction valves uniformly in buildings to lower pressure and reduce water level controller heights

Safety and Environmental Protection Center of Collate information on environmental protection investments across Sectors as required by to achieve water savings while improving pipeline durability. Control floats are added to washing buckets to automatically stop water flow when full

Engineering Operations Department functional departments such as the Board Office. reducing overflow waste during washing. Water curtain operation control is enhanced with summer water curtain pumps preferably using automatic

mode and supply intervals timed to just wet the curtains improving water use efficiency. Dedicated faucets and washing tools are added to corridors

Pig Sector Safety Operations and Planting Coordinate the establishment of environmental protection management systems across squads and gestation houses at each site to ensure effective cleaning while reducing water use.Environmental Protection Department providing technical support and data backing.Reducing Maintenance Water. We optimize in-stall limited drinking devices to precisely adjust water flow with a 60% coverage rate among farmers.Squad Planting Environmental Protection Implement Sector-specific management systems and actions accurately monitoring the Independent rainwater and sewage pipeline systems are constructed to strengthen source control and monitoring reducing wastewater treatment load

Departments environmental management status of each project. and costs with a current 70% coverage rate among farmers.Green Industry Practices New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Indicator Unit 2024 Waste Category Waste Source Disposal Method

Total water withdrawal million tons 25.3924

Implement intelligent program-controlled manure cleaning methods and optimize

Tap water/municipal water million tons 4.9336 frequency in pig houses coupled with indoor temperature regulation and enhanced

ventilation systems to minimize odor generation.Water withdrawal by source Surface water million tons 0.0074 Generated from livestock manure Odor and urine feed residues and Utilize deodorizing chambers for spray-based odor removal effectively capturing

Groundwater million tons 20.4514 digestive tract gases. odorous gases in liquid form through spraying. Eliminate odor molecules adhering to

Total water discharge million tons 19.0581 particulate matter from the air via wet absorption and oxidation while reacting odorous

gases with emulsifying agents in the solution for efficient removal.Municipal network million tons 2.2891

Generated from livestock manure

Water discharge by channel Surface water million tons 1.0158 Biogas Harness on-site energy sources for power generation and heating.fermentation.Reclaimed water for irrigation million tons 15.7532 Employ advanced treatment processes including UASB anaerobic + two-stage A/O

Breeding Comprising animal urine partial CSTR and black membrane biogas to convert wastewater into reclaimed water or biogas

wastewater feces and cleaning water.slurry suitable for field irrigation.Packaging Management

New Hope Liuhe adheres to a strategy focused on reduction Domestic Discharged from company offices Perform regular self-inspection and third-party testing of effluent water quality to

wastewater

reusability recyclability renewability and biodegradability. By selecting and employee canteens. ensure compliance with standards before discharge into municipal networks.environmentally friendly packaging materials avoiding over-packaging

and reducing packaging waste generation the Company promotes

sustainable packaging transformation pursuing both environmental and C o m p r i s i n g m e d i c a l w a s t e Implement a Hazardous Waste Management System to standardize collection storage

economic benefits. pesticide and herbicide residues and treatment processes.Hazardous

waste from production processes and

Packaging Reduction: The Fresh Meat Division of the Pig Sector utilizes l abora to ry-genera ted was te Provide designated temporary storage facilities in hazardous waste rooms maintain

larger packaging for B2B customers to reduce overall packaging usage. reagents acids and alkalis. detailed records and regularly transfer waste to qualified third-party institutions for

The Feed Sector incorporates 18044 tons of recycled plastic reduces safe and compliant disposal.bulk feed woven bag usage and decreases plastic packaging by 4305

tons compared to the previous year.Dead Adhere strictly to the Standard for the Treatment of Dead Livestock and Poultry for A n i m a l s t h a t p e r i s h d u r i n g

livestock and temporary storage and disposal maintain meticulous record-keeping and prohibit non-

Packaging Recyclability: In some relatively impoverished areas of poultry breeding processes. compliant storage methods and unauthorized burial.Southeast Asia and other countries reusable feed packaging bags serve

as important production materials for farmers. Accordingly the Overseas

Sector implements a reverse packaging recycling system in certain Solid Solid waste separated by manure Apply high-temperature aerobic fermentation treatment in accordance with the

areas processing by quality grade: intact packaging enters the second- manure scrapers or solid-liquid separators. Specification for the Treatment of Solid Manure to produce nutrient-rich fertilizer for

hand packaging market after quality inspection (priced per piece) field application.while low-quality packaging is sold by weight to recycling channels

promoting closed-loop supply chain management. The Company also

Construction Establish the Solid Waste Management System install clearly marked fixed waste collaborates with surrounding villages to establish community recycling and domestic Generated from construct ion collection points throughout facility areas implement waste classification and strictly

co-governance mechanisms specifying recycling benefit distribution waste activities and daily operations. prohibit unauthorized dumping discarding burying or burning.through agreements to return circular economy benefits to farmers and

villagers.Packaging Reusability: In chick transportation scenarios the Overseas

Sector prioritizes the use of recyclable plastic crates to reduce reliance

on single-use cardboard packaging. A deposit system is implemented to KEY

encourage crate returns supporting the establishment of a traceable and Indicator Unit 2024

circular reuse system. The Overseas Poultry Division promotes the use of recyclable transit crates. PERFORMANCE

Total wastewater treated million tons 18.1396

Chemical oxygen demand (COD) emissions tons 9811.33

KEY Total packaging material usage: 23966.3 tons

PERFORMANCE Wastewater Total ammonia nitrogen emissions tons 496.77Plastic packaging usage: 23347.71 tons with the Feed Sector reducing usage by Pig farming wastewater recycling rate % 93.34

4305 tons compared to the previous year Slaughtering and meat processing wastewater recycling rate % 41.10

Paper material usage: 407.6 tons; foam material usage: 214 tons Total non-hazardous waste generated tons 316024.45

Solid Waste

Pollution Prevention and Control Total hazardous waste generated tons 5.42

New Hope Liuhe strictly adheres to and implements various environmental protection laws and regulations including the Law of the People's Republic

of China on Water Pollution Prevention and Control the Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution

the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste and the National Hazardous Waste

Inventory . The Company has established the Solid Waste Management System and the Hazardous Waste Management System to rigorously control

pollutant generation and emissions. Through a multi-faceted approach involving source reduction classified management and recycling the Company

strives to minimize solid waste emissions. Additionally it has intensified efforts in treating and controlling exhaust gas and wastewater implementing

multiple measures to mitigate the environmental impact of its production and operations.Exhaust Gas Wastewater Solid WasteGreen Industry Practices New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Addressing Climate Change New Hope Liuhe's "Dual Carbon" Three-Year Strategic Plan (2023-2026)

Objective Progress

The escalating frequency of extreme weather events due to climate change has transformed environmental risks from long-term concerns into urgent

realities. In response the public increasingly expects companies to assume a proactive leadership role in addressing climate change. As a responsible

enterprise New Hope Liuhe is actively advancing the development of a robust climate risk governance system. This initiative includes establishing a The Anhui Wuhe Animal Husbandry VCS Project provided Volkswagen with

scientific climate risk assessment mechanism comprehensively identifying and managing climate risks and opportunities and evaluating the potential Actively promote carbon sink project certification 182500 tons of carbon credits to support their net-zero emissions production

impacts of climate change on business operations and the whole industrial chain thereby enhancing climate resilience and driving green low-carbon

Carbon (GS VCS etc.) in the Pig Sector to obtain substantial goals.development.Trading carbon emission reductions for offsetting the

Company's carbon emissions. Other carbon emission reduction projects have approximately 90000 tons of

Climate Governance carbon credits pending sale and about 160000 tons awaiting issuance.New Hope Liuhe has progressively established a comprehensive climate change governance structure. This framework is spearheaded by the Board of

Directors and the Strategy and Sustainable Development Committee with operational management serving as the core. The Safety and Environmental

Protection Center along with the Planting Environmental Protection Departments Administrative Departments etc. of all sector BUs function as the

primary implementing bodies. This top-down approach ensures the continuous and systematic implementation of climate governance initiatives.Steadily advance crop cultivation (wheat corn etc.)

fruit tree planting (peach tangerine apple etc.) and

Biological forest protection on nutrient recycling land for the Pig

Carbon Sector (including farmland and forestland) to offset

Biological carbon sequestration in 2024 totaled approximately 94500 tons of

Board of Directors Decide on the Company's climate change-related strategic planning. Provide oversight on climate change

CO equivalent.Sequestration the Company's carbon emissions through biological 2

Strategy and Sustainable Development risk and opportunity-related matters. Review climate change-related targets. Evaluate reports from carbon sequestration.Committee operational management on climate change issues and offer strategic recommendations.Orchestrate the development of major policies and strategic plans. Identify climate change-related risks and

Operational Management opportunities and integrate them into operational considerations. Manage climate change-related targets.Spearhead the implementation of climate change response and low-carbon development initiatives.Safety and Environmental Protection Develop action strategies establish goals create annual plans and define performance indicators aligned

Center with the Company's operational context. Impact Risk and Opportunity Management

Planting Environmental Protection Execute headquarters' strategies and objectives driving project implementation and plan execution.D e p a r t m e n t s A d m i n i s t r a t i v e Coordinate and deploy energy conservation and carbon emission reduction measures across various sites New Hope Liuhe proactively addresses the risks and impacts associated with climate change. The Company has established a comprehensive climate

Departments etc. of all sector BUs and squads. Collate and analyze relevant data to foster closed-loop management of energy conservation change risk management process conducts thorough assessments to identify climate-related risks and opportunities and formulates strategic action

and carbon emission reduction efforts. plans to respond to climate change.Risk/Opportunity Description F i n

P

a

o

n c

t i

e

a

n

l

t i aIm

l

p a c t Response Measures

Climate Strategy Planning

Physical Risks

Based on the outcomes of climate-related risk and opportunity assessments New Hope Liuhe has proactively integrated climate change response

and "dual carbon" initiatives into its strategic planning comprehensive risk management system and daily operational management. The Company

has developed a three-year "dual carbon" strategic plan (2023-2026) focusing on five key areas: green electricity utilization biogas utilization water Increased frequency or intensity of f loods Closely monitor extreme weather conditions and

recycling biological carbon sequestration and carbon trading. These efforts aim to vigorously promote energy conservation and carbon emission typhoons and extreme rainfall events adversely conduct comprehensive assessments of their impact

reduction. The Company continues to monitor emerging fields and new demands in the transition to a low-carbon economy emphasizing sustainable affect the growth processing and transportation on suppliers and their response capabilities; diversify

agriculture to enhance development resilience and foster sustainable growth. of upstream raw materials essential for production. supplier base to reduce reliance on single-source

Operating costs ↑

Extreme These events also pose significant safety risks suppliers.Weather to employees and may lead to disruptions in

Revenue ↓ Develop robust emergency plans and secure necessary

factory operations impacting business continuity. Asset value ↓ resources for extreme weather events; conduct regular

Furthermore such incidents can cause damage emergency drills to enhance preparedness and response

New Hope Liuhe's "Dual Carbon" Three-Year Strategic Plan (2023-2026) to tangible assets and construction equipment capabilities.resulting in increased expenditure on facility Incorporate regional climate risk assessments into the

Objective Progress maintenance and repairs. selection and planning processes for new projects.By 2026 significantly increase the proportion of Implemented 3.98 MW of newly grid-connected photovoltaic projects with

Green green electricity usage across all Sectors achieving total operational photovoltaic projects reaching 15.22 MW.Electricity full coverage of photovoltaic projects for all feasible Operational photovoltaic projects generated 11.7468 million kWh of green Implement effective cooling measures and work Rising temperatures may adversely affect the

Utilization installations throughout the Company's operations electricity reducing greenhouse gas emissions by approximately 6878.93 tons time management strategies for high-temperature health of employees and l ivestock impact

(i.e. feed pig). of CO2 equivalent. operations and provide appropriate protective equipment performance and increase operating Operating costs ↑ resources to employees.Temperature costs. Revenue ↓ Constantly monitor livestock breeding environments

Vigorously develop water recycling models including Promoted reclaimed water irrigation with a total of 15.7532 million tons of Rise Asset value ↓ implement proper cooling measures and ensure

Water reclaimed water irrigation and manure fertilization reclaimed water used for field irrigation significantly reducing water resource More frequent or larger-scale power outages suitable growth conditions for animals.Recycling directly reducing water resource consumption and consumption. due to rising temperatures may pose significant Improve overall production efficiency through energy-

indirectly decreasing energy consumption in fertilizer production stoppage risks for the Company. saving technology upgrades and optimization of the

production processes. energy structure.Green Industry Practices New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Risk/Opportunity Description P oFinan

tent

c i a l I

ial

m p a c t Response Measures

Transition Risks

Increasingly stringent national policy requirements

and accelerated energy structure transition

may lead to higher energy costs and increased Proactively engage with local policy authorities to stay

Policies regulatory compliance risks as the Company adapts

abreast of environmental and carbon-related legislative

to new policy frameworks. changes; conduct timely studies and disseminate and Operating costs ↑

The Shenzhen Stock Exchange 's evo lv ing information on policy updates; anticipate policy Regulations

sustainabi l i ty disc losure requirements wi l l adaptability needs and improve internal management

gradually strengthen climate-related information and compliance disclosure practices.disclosure mandates posing new challenges for

the Company's climate change management and

reporting practices.Stricter customer requirements for product Strengthen the adoption of low-carbon technologies

carbon emission reduction and the increasing accelerate agricultural green transformation efforts and

Market importance of green low-carbon technology Operating costs ↑ systematically reduce the carbon footprint of products.and deployment will significantly impact the Company's Revenue ↓ Conduct comprehensive carbon audits develop carbon

Technology compet i t iveness necess i tat ing increased emission reduction pathway plans and thoroughly

investment in low-carbon transition initiatives. assess the return on investment and feasibility of low-

carbon transition projects prior to implementation.Increasingly stringent environmental performance Ensure timely disclosure of the Company's climate

disclosure requirements lead to higher compliance change mitigation measures including strategic planning

costs associated with maintaining or enhancing objectives actions and performance metrics.the Company's reputation. Operating costs ↑ Implement r igorous controls on the Company's

Reputation Failure to meet publicly stated carbon emission Revenue ↓ disclosures eliminate any potential for false or misleading

reduction commitments may expose the Company information and ensure consistency between reported

to accusations of greenwashing from investors information and actual operational practices to build a Photovoltaic installation on multi-story pig farms

and the public potentially causing significant more credible and responsible corporate image.damage to brand reputation and corporate

image.Transition Opportunities Low-Carbon Emission Reduction Actions

Widely implement energy-saving technologies and New Hope Liuhe strictly adheres to the requirements of laws and regulations such as the Environmental Protection Law of the People's Republic of

Adopt cutting-edge energy-saving technologies equipment across all production processes and establish China and the Energy Conservation Law of the People's Republic of China . The Company integrates green and low-carbon operational concepts

and equipment to reduce energy consumption in

Revenue ↑ comprehensive energy consumption management throughout its production processes focusing on clean energy transition equipment energy efficiency improvement and carbon asset development Resource production processes thereby lowering operating

Operating costs ↓ procedures to reduce energy costs. and management. These initiatives contribute to the realization of the national "dual carbon" goals.Efficiency costs while improving production efficiency and Develop and enhance ecological circular breeding systems

supply chain capacity. to maximize resource utilization and minimize waste Clean Energy Transition

generation.The Company actively promotes the utilization of clean energy sources such as photovoltaics and biogas gradually achieving diversification and a

cleaner energy structure to reduce greenhouse gas emissions.Increase utilization of renewable energy sources Actively promote the development of distributed

(e.g. distributed photovoltaic systems and

Energy photovoltaic and wind power projects to increase the biomass fuels) to drive energy use structure Operating costs ↓ Promotion of Distributed Photovoltaic Applications

Structure proportion of green electricity usage.transformation reduce carbon emission intensity Gradually increase the use of clean energy sources With the goal of achieving full coverage of all feasible photovoltaic projects across all Sectors by 2026 the Company is steadily advancing their

and lower overall energy costs. particularly biomass fuels. construction through a three-step plan. During the reporting period photovoltaic power generation projects were completed in Guangzhou Meizhou

and other locations fully utilizing warehouse roof spaces to constantly increase the proportion of clean energy use. In 2024 11 photovoltaic projects

were operational with a total installed capacity of 15.22 MW covering an area of 141200 square meters and generating 11.7468 million kWh of

electricity. Four additional photovoltaic projects with a total installed capacity of 3.92 MW are under construction or planned for 2025.Enhance agricultural carbon sequestration Further expand the industrial model of circular agriculture

capabilities through innovative crop-livestock to increase carbon sink storage capacity in farmland

Market integration models and develop agricultural Revenue ↑ soils and crops. Actively promote biological carbon Biogas Reuse

carbon sink projects to promote synergies sequestration initiatives and carbon asset development

programs and participate strategically in carbon trading Biogas is a versatile clean energy source that can replace traditional fuels to generate heat and electricity serving as a gaseous fuel in production between environmental protection and economic

markets. operations. The Company vigorously promotes biogas reuse projects at various pig farms. At farms equipped with biogas boilers purified biogas is used benefits. for internal heating reducing gas consumption. Additionally the Company is actively exploring biogas power generation models using purified biogas

to generate electricity for pig farm use thereby reducing on-site electricity consumption.Green Industry Practices New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Boosting Energy Efficiency Carbon Asset Development

The Company consistently refines its energy management system implementing the Energy Saving and Consumption Reduction Guidebook. Based on Enhancing the carbon sink function of ecosystems is a nature-based solution to offset carbon dioxide emissions from human activities and a crucial

actual business needs and development it sets specific energy usage targets establishes clear energy control measures and strictly regulates energy means to achieve "dual carbon" goals. Leveraging its corporate strengths New Hope Liuhe utilizes land for Pig Sector consumption to actively

consumption to constantly improve energy efficiency and management standards. participate in biological carbon sequestration and promote carbon asset development achieving a synergistic balance of ecological environmental

and economic benefits.Energy Usage Planning

Case

Sector Indicator 2024 Target 2024 Performance 2025 Target Developing Carbon Sinks and Trading to Support Carbon Neutrality

Feed Business (including Natural gas (m3) 51000000 65890866 72500000

t h a t o f t h e F e e d B U In June 2024 the Company entered into a Carbon Asset Development and Trading Service Entrustment Agreement with

Overseas Sector and Pig

Sector) Electricity (kWh) 538457098 863110000 940000000 Sinopec Carbon Industry Technology Co. Ltd. This agreement further advances the Company's strategy in emission

reduction and carbon mitigation underscoring its role as a leading domestic agricultural and animal husbandry enterprise

Natural gas (m3) 29050603 38214419 37100000 and contributing to the realization of national "dual carbon" goals.In October 2024 the Company's inaugural emission reduction project to reach a carbon credit trading agreement with

Breeding Volkswagen the Anhui Wuhe Animal Husbandry VCS Project officially provided Volkswagen with 182500 tons of carbon

Electricity (kWh) 1046367865 615580366 598000000

Pig Breeding credits to support their net-zero emissions production goals. Additionally the Company has approximately 90000 tons

and Slaughter of carbon credits from other emission reduction projects pending sale and about 160000 tons of carbon credits awaiting

Natural gas (m3) - 2875515 3000000 issuance.Fresh Meat

Electricity (kWh) - 48730000 54000000

Note: In 2024 the Company restructured its main business into two major sectors: i) feed and ii) pig breeding and slaughter. For the first time energy use

performance and planning for feed have been consolidated across the Feed BU the Overseas Sector and the Pig Sector. The Pig Sector enhanced intelligent energy Indicator and Target Management

management in breeding facilities in 2024 resulting in significant electricity and water savings in the latter half of the year. However increased production lines

during winter led to higher natural gas consumption. Furthermore the Company's feed and slaughter capacity targets for 2025 are set to increase compared to Guided by its "Dual Carbon" Three-Year Strategic Plan (2023-2026) New Hope Liuhe meticulously plans its carbon emission reduction roadmap and

2024 leading to substantial changes in energy consumption performance and next year's targets relative to previously established budget goals. consistently monitors goal achievement status.

Indicator Unit 2024

Operational Optimization. The lighting schemes are optimized by implementing alternating lighting measures based on actual light intensity across all

production lines. Farrowing houses employ a "two off three on" lighting strategy while fattening houses use either "two off four on" or "four off two on"

to reduce electricity consumption for lighting. Boiler operation is adjusted by optimizing the start-stop frequency to minimize natural gas consumption. Direct greenhouse gas emissions (Scope 1) tons of CO2 equivalent 264591.66

Smart meters are installed on air conditioners in living area dormitories implementing intelligent timing control based on production needs to reduce Indirect greenhouse gas emissions (Scope 2) tons of CO

electricity waste. 2

equivalent 930406.76

Total greenhouse gas emissions tons of CO2 equivalent 1194998.42

Equipment Upgrade. The use of solar equipment is expanded to harness abundant solar resources during summer raising water temperature and

reducing energy consumption. Electric water heaters are gradually replaced with air-source heat pumps at all access points reducing electricity Greenhouse gas emission intensity tons of CO2 equivalent/RMB 1 million revenue 11.59

consumption while improving water supply capacity and stability. Operation timers are added to gas equipment monitoring heating operation time

for each housing unit based on daily operational data. Units with longer operation times are closely supervised and subject to timely improvements

to reduce gas consumption. Heat recovery equipment is increased to improve residual heat recovery and boiler thermal efficiency achieving energy Note: Greenhouse gas emissions refer exclusively to carbon dioxide emissions and do not encompass other greenhouse gases such as methane and nitrous oxide

savings and increased efficiency. from alternative emission sources. Scope 1 greenhouse gas emissions: Emissions from fossil fuel combustion activities including diesel gasoline natural gas and

industrial production processes. Emission factors are calculated in accordance with the national standard GB/T 32151.25-2024 Requirements of the Greenhouse

Gas Emission Accounting and Reporting—Part 25: Food Tobacco Alcohol Beverage and Refined Tea Enterprise . Scope 2 greenhouse gas emissions: Emissions

Monitoring and Inspection. An environmental monitoring platform is established to visually display overall equipment energy consumption. The squad

team is responsible for monthly analysis and ranking of energy consumption data for each area to ensure timely monitoring and optimization of energy resulting from purchased electricity and heat. The electricity emission factor utilized in 2024 refers to the national average power grid factor in the Announcement

management. Regular inspections are conducted at key points such as pigsty doors windows openings wall edges secondary manure ditches auger on the Release of Carbon Dioxide Emission Factors for Electricity in 2022 (Announcement No. 33 of 2024) jointly issued by the Ministry of Ecology and Environment

pools and horizontal ventilation openings. Proper sealing of gas pipelines and facilities is ensured with prompt implementation of sealing measures to and the National Bureau of Statistics.reduce gas waste.E n e rg y - s a v i n g Tra i n i n g .Indicator Unit 2024

Comprehensive energy efficiency

training is conducted sharing Diesel consumption liters 11761478.46

best practices in electricity and

gas conservation and explaining Gasoline consumption liters 1275137.06

appl icat ion requirements to

raise employee awareness of Natural gas consumption million m3 106.9808

energy conservation. During

t h e r e p o r t i n g p e r i o d s i x Purchased electricity million kWh 1527.4204

energy management training Operational phg e neration

o t o v o l t a i c p o w e r million kWh 11.7468

sessions were held recording

24800 attendances including Photovoltaic electricity usage million kWh 9.8641

m a n a g e m e n t p ro d u c t i o n

and safety and environmental Purchased steam tons 458390.45

p rotec t ion pe rsonne l f rom Comprehensive energy consumption tons of standard coal equivalent 404713.72

branches and subsidiaries of

both the Pig Sector and the Feed Comprehensiv e e n e r g y c o n s u mption t o n s o f s t a n d a r d c o a l e q u i v a l e n t / 3.93

Sector. intensity RMB 1 million revenue Cultivating fruits and vegetables on land for pig farm consumption to diversify on-site meals.KEY

PERFORMANCEGreen Industry Practices New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Land Use and Biodiversity Protection The Company proactively engages in ecological restoration and soil reclamation efforts. Grass is strategically planted on exposed

surfaces within farm areas to effectively prevent soil erosion while enhancing the aesthetic appeal of the farm environment. A notable

Land example is the 6750-sow farm project in Nali Village Datang Town Liangqing District Nanning City Guangxi which includes a

Reclamation retaining wall slope protection project with a substantial grass planting area of 39115 square meters. At the 72000-head fattening New Hope Liuhe places significant emphasis on biodiversity protection consistently promoting a development model characterized by agricultural and

farm in Haikou over 14000 square meters of grass have been planted within the farm premises significantly bolstering the stability

animal husbandry circulation and integrated crop-livestock farming. The Company implements preventive measures and restoration work to mitigate

and resilience of the local ecosystem.the ecological impact of its production and operational activities fostering the sustainable development of agricultural ecosystems.Biodiversity Protection

Throughout the planning design construction and daily operations of pig farm projects the Company adheres to relevant laws regulations and

policies including the Environmental Protection Law of the People's Republic of China the Environmental Impact Assessment Law of the People's

Republic of China the Law of the People's Republic of China on Prevention and Control of Soil Contamination and the Opinions on Further

Strengthening Biodiversity Protection . The Company prioritizes the protection of original natural vegetation and habitats in development areas

implementing multiple measures to minimize the impact of facility construction and operation on habitats and the ecological environment. This

approach safeguards the Earth's ecosystem and achieves harmony between development operations and the environment. During the reporting period

the Company refrained from establishing new operating points in government-designated key ecological function areas or regions with significant

biodiversity value. Furthermore no protected or restored habitats were severely impacted due to new projects.Biodiversity Protection Commitments

We adhere to national land use guidelines for livestock and poultry breeding facilities respecting arable land preservation limits

and the "Three Lines and One List" (i.e. the ecological protection red line the environmental quality baseline the resource

utilization upper limit and the ecological environment access list) ecological zoning control policy. We commit to refraining from

production and operational activities in World Heritage sites and ecologically sensitive areas. We prohibit deforestation and

avoid operating in nature reserves key ecological function areas scenic spots and other prohibited breeding zones and arid

water-scarce regions pledging to protect local water sources and ecosystems. Retaining wall slope protection project in Datang Town

Production We employ scientific methods to assess the biodiversity impact of site selection for livestock and poultry farms and their

and Operation production activities. We implement appropriate measures to mitigate negative impacts and enhance positive outcomes on

local biodiversity.We conduct thorough scientific evaluations of potential impacts on surrounding ecosystems for all our projects. In response to

increasingly frequent extreme weather events we develop comprehensive protection measures and restoration plans for post- Germplasm Resource Protection

disaster scenarios. Our efforts focus on protecting and restoring native or indigenous vegetation on our operational lands

The livestock and poultry breeding industry serves as the "chip" of animal husbandry representing a strategic and foundational core industry that

maintaining soil health preventing soil erosion and increasing carbon sequestration.safeguards national food security food safety and ecological security. New Hope Liuhe has consistently invested in breeding efforts achieving

breakthroughs in challenging projects such as pig and duck "chips" thereby making substantial contributions to the protection of superior germplasm

resources. For more detailed information on the Company's breeding research initiatives please refer to the "Nutrition and Health R&D" section of this

Upstream We procure and utilize natural resources and raw materials sustainably to minimize damage to biodiversity and ecosystems. report.and Downstream We are committed to strengthening communication and collaboration with external stakeholders to jointly promote biodiversity

Management protection and ecological restoration initiatives.Case "Efficient Duck Breeding Technology Creation New Variety

Land Use Improvement Cultivation and Industrialization" Achievement Wins Second Prize

New Hope Liuhe strictly adheres to relevant land use laws and regulations in its operational areas to ensure compliance in land development utilization in National Science and Technology Progress Award

and reclamation activities. The Company has established clear objectives for soil and water conservation vegetation restoration and soil improvement

as part of its land use strategy. A comprehensive environmental monitoring mechanism has been implemented to ensure the continuous and effective

execution of land use improvement initiatives through regular monitoring and assessment. Since 2012 New Hope Liuhe has been at the forefront of duck "chip" technology

development leveraging its integrated breeding reproduction and promotion

systems at farming bases to rapidly establish a robust breeding infrastructure.To accelerate the breeding cycle the Company has adopted advanced molecular

breeding techniques seeking genetic-level breakthroughs and expanding poultry

hybridization experiments to more than 10 times the traditional scale of 100 birds.Through rigorous analysis and statistical evaluation of extensive sample data the

The Company consistently enhances its research on manure treatment technologies and soil improvement models. It employs R&D team successfully identified "super genes" that significantly influence duck

advanced processes such as UASB anaerobic + two-stage A/O CSTR and black membrane biogas to treat production wastewater. weight and body shape. The effective utilization of these genetic markers has

High-temperature aerobic fermentation technology is utilized to produce nutrient-rich fermented manure. Taking into account factors become a core competitive advantage in the Company's duck breeding program.Soil such as terrain soil properties crop types and fertilization stages the Company has developed standardized field application models. In 2024 the "Efficient Duck Breeding Technology Creation New Variety Cultivation

Improvement This approach optimizes the utilization and conversion of liquid fertilizer enhancing soil organic matter content and fertility improving and Industrialization" achievement won the second prize in the National Science

soil structure reducing chemical fertilizer usage and significantly enhancing the local ecological environment. and Technology Progress Award marking New Hope Liuhe's sixth and seventh

recognition with this esteemed honor.For more information on soil improvement initiatives please refer to the "Sustainable Agriculture" section of this report.Co-creating Value New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Co-creating Value

to Achieve

Common Prosperity

Contributing to the

UN 2030 SDGs

Chairperson Liu Chang visits a broiler farm of Egyptian farmers.Co-creating Value New Hope Liuhe Co. Ltd. 2024 Sustainability Report

protection measures to ensure the confidentiality of all complaints and respect the privacy rights of those involved. Any retaliatory actions will be met

Empowering Employees with severe consequences.Working Hours and Leave

New Hope Liuhe adheres to a people-centric development philosophy recognizing diligent workers as its most valuable asset. The Company actively The Rest and Leave Attendance Management Regulations clearly define working hour systems and overtime management norms establishing a

safeguards employee interests establishes platforms for employee growth prioritizes occupational health and safety and fosters a harmonious and scientific working hour management system and reasonable labor intensity standards actively ensuring employees' rights to rest and leave. The

friendly workplace atmosphere. It strives to attract develop and retain talent share the fruits of its growth with employees and create a win-win Company provides paid annual leave that exceeds national policy requirements and offers flexible working hours. It guarantees maternity leave for

environment where corporate success and employee development go hand in hand. women as required by the state and provides marriage leave bereavement leave and paternity leave for male employees in accordance with local

regulations at various operational locations. During the reporting period we piloted an additional 2 hours of welfare leave per quarter to enhance

Employee Rights and Well-being employee satisfaction.The Company has integrated human rights protection as a core corporate responsibility. It strictly complies with national laws and regulations including The Company encourages employees to improve work efficiency and complete their daily tasks within the specified time. Except for special and urgent

the Labor Law of the People's Republic of China and the Labor Contract Law of the People's Republic of China . The Company endorses and respects situations the Company discourages overtime work and strengthens management's responsibility for efficiency oversight strictly controlling the

the ILO Declaration on Fundamental Principles and Rights at Work and adheres to local regulations and policies in its operational areas. It effectively frequency of overtime and establishing a long-term mechanism to balance work and life.safeguards employees' legal rights respects cultural diversity implements diverse communication mechanisms and encourages employee participation

in corporate governance thereby fostering an equal and inclusive workplace environment.KEY Labor contract signing rate: 100%

PERFORMANCE Employee discrimination incidents: 0

Governance Strategy and Management Approach

Complete the revision of management systems including the Consistently promote diverse and equal employment explicitly

Human Resource Management Regulations New Employee prohibiting any form of workplace discrimination violence or Employee Benefits and Welfare

Probation Management Measures Employee Resignation conflict.Retirement Re-employment and Rehiring Management Measures Develop reasonable working hour systems and labor intensity The Company is committed to providing a comprehensive and diverse range of benefits and welfare programs for employees. We have implemented

Rest and Leave Attendance Management Regulations and standards ensuring employees' rights to rest and leave enhancing multiple initiatives to safeguard both the physical and mental well-being of our staff organizing a wide array of cultural activities to promote work-life

Employee Code of Conduct encompassing prevention of forced employee benefits enriching employees' leisure activities and balance and enhance employees' sense of security achievement and happiness. These efforts aim to foster team cohesion and a sense of belonging

labor fair employment and other pertinent content. implementing employee care and support programs. creating a warm and harmonious work environment.Establish a workers' congress system to ensure employees' rights to

participation and oversight.Welfare Guarantee

Impact Risk and Opportunity Management Indicators and Targets The Company offers a multifaceted approach to employee benefits with detailed explanations of various welfare programs and allowance standards

outlined in the Welfare and Allowance Management Measures . These encompass social insurance and housing provident fund contributions accident

Mitigate risks such as employment discrimination and forced labor Routinely investigate and evaluate the management of employee insurance coverage holiday entitlements and paid leave employee activities and compassionate assistance programs all designed to enhance

through policies systems and training initiatives. rights and benefits maintain open channels for employee employee satisfaction and well-being.Regularly conduct training and cultural integration activities feedback and promptly adjust and constantly improve the Statutory Benefits: The Company offers social insurance housing provident fund paid leave parental leave (including maternity leave) and

to address compliance risks and cultural conflicts in overseas employee rights protection and benefits management system. bereavement leave among others.employment identifying potential issues. Distinctive Benefits: The Company provides a range of additional benefits such as free accommodation and meals annual health check-ups meal

allowances communication subsidies transportation allowances housing subsidies holiday gifts and bonuses condolence funds welfare leave and

our Wonderland of New Hope Liuhe surprise box activities. Special benefits are also tailored to local customs in various operational areas such as

offering Eid al-Fitr and Eid al-Adha allowances in the Bangladesh company.Rights Protection

The Company steadfastly adheres to legal employment practices and consistently updates internal management systems such as Human Resource

Management Regulations New Employee Probation Management Measures Rest and Leave Attendance Management Regulations New Employee Employee Care

Handbook and Employee Code of Conduct . Regular promotional training is conducted to standardize ethical behavior policies violence and conflict We are deeply committed to addressing

policies prevention of forced labor prohibition of child labor fair employment and diversity anti-discrimination working hours and leave and other employees' needs and concerns. Our

fundamental rights-related content thereby safeguarding employees' legal rights. ongoing initiatives such as the Good

Mutual Assistance Association and the

Equal Employment and Freedom of Choice Warm Heart Project demonstrate the

corporate culture of care and responsibility.In the recruitment process the Company adheres to the principles of openness fairness justice and merit-based selection adopting a two-way In 2024 the Company launched the

selection approach. It eliminates any form of recruitment discrimination selects talent based on job requirements and does not discriminate based Wonderland of New Hope Liuhe employee

on race color gender age belief or other factors providing equal employment and development opportunities for all employees. The Company has care service platform featuring monthly

established a comprehensive compliance employment management system strictly implements the labor contract system prohibits the use of child surprise box activities quarterly paid

labor and forced labor and respects employees' rights to freely choose their employment. It commits to publishing objective and truthful recruitment welfare leave and interactive Mood Station

information for job seekers to choose freely does not restrict employees from engaging in specific work or work that does not align with their wishes spaces. These initiatives are designed to

and supports employees in pursuing their personal career goals and development. enhance cohesion and vitality across the

organization. From July to August we

Anti-discrimination and Anti-harassment implemented the Frontline Employee Care

In accordance with the requirements related to the protection of female employees and human rights policies the Company clearly states in its Human Campaign organizing a series of themed

Resource Management Regulations that it strongly opposes workplace harassment including but not limited to physical harassment psychological activities including heartwarming care

harassment sexual harassment verbal harassment or abuse fostering a mutually respectful work environment for employees. We maintain a zero- safety awareness cultural events and

tolerance policy towards any form of harassment and discrimination clearly specifying disciplinary actions for harassment in our regulations and learning sharing sessions all aimed at

expect every employee to actively monitor and report violations. For any behavior that violates our standards we will conduct a thorough investigation improving frontline employees' satisfaction

and take serious action against violators. We encourage and support good-faith complaints or feedback on violations and implement whistleblower and sense of belonging.Co-creating Value New Hope Liuhe Co. Ltd. 2024 Sustainability Report

KEY Since its establishment in 2014 the Good Mutual Assistance Association has assisted Case

PERFORMANCE Daycare Summer Camp for Employees' Children2865 families with total aid amounting to RMB 28.4127 million.In 2024 the Good Mutual Assistance Fund raised RMB 3.993 million assisting 496 From August 5-16 2024 the Company's Qingdao platform organized a two-week special daycare program for employees'

children providing diverse summer camp learning activities for over 30 children.families with a total aid of RMB 5.5051 million.Diverse Activities

We enrich employees' lives through a variety of cultural and sports activities fostering interaction and communication among staff members. These

initiatives help create a harmonious team atmosphere and build a united workforce striving towards common goals.KEY

PERFORMANCE

Proportion of women in management positions: 14.12%

Proportion of women in middle management: 14.08%

Proportion of women in senior management: 20%

Basketball tournament in the Philippines Region Proportion of women in the reserve management talent pool: 26.68%

Proportion of women holding management positions in revenue-generating functions: 3.39%

Diversity and Inclusion Proportion of ethnic minority employees: 7.71%

The Company champions a culture of diversity and inclusion taking into account various factors such as employees' gender cultural background and

experience. We have established an equal opportunity framework that spans the entire employee lifecycle from recruitment and compensation to Proportion of employees with disabilities: 0.49%

training and promotion. This approach fosters a fair and inclusive workplace ecosystem and cultivates a diverse talent pipeline.Supporting Female Employees' Development. We actively work to eliminate gender discrimination and prioritize the protection of female employees'

rights. The Company strictly adheres to national policies on maternity leave parental leave and breastfeeding leave and has installed nursing rooms

in all office locations. We organize a series of activities for International Women's Day to enrich the cultural lives of female employees and reinforce our

commitment to respect and care. We provide equal training opportunities for female staff encourage and nurture them for management positions and Equal Communication

ensure that capable female employees can fully participate in company management leveraging their unique strengths.The Company remains committed to a people-oriented approach and has taken multiple measures to advance democratic management. It has

Caring for Special Groups. We make accommodations for employees with disabilities by arranging appropriate job positions based on their individual formulated the Detailed Rules for the Implementation of the Workers' Congress and ensures the disclosure of company rules regulations notices and

capabilities. This approach constantly improves workplace inclusivity and contributes to the Company's sustainable development. announcements through channels such as the workers' congress and the OA system. These efforts fully safeguard employees' rights to information

participation and oversight while enhancing their involvement in corporate governance. To further strengthen corporate transparency the Company

Respecting Cultural Diversity. We offer specialized support and assistance to ethnic minority employees respect all employees' freedom of religious continues to improve its open management practices and communication mechanisms fostering a strong sense of ownership among employees. This

belief and have established prayer rooms in all our offices. Overseas subsidiaries actively promote equality and diversity encourage cross-cultural contributes to democratic decision-making fair and just stakeholder relations and a harmonious united workforce. In 2024 the Company promoted

understanding and honor local traditions. During Western holidays such as Valentine's Day and Christmas they organize celebratory events to help the establishment of workers' congresses and trade unions across all business units forming a structured mechanism for democratic management.local employees feel respected and valued demonstrating the Company's appreciation for cultural traditions and fostering a workplace atmosphere of All major corporate decisions and policy revisions followed strict democratic procedures including open disclosure and the solicitation of employee

inclusiveness and unity. feedback.Co-creating Value New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Active Solicitation of Employee Feedback: The Company actively solicits employee input through multiple channels including email open telephone

lines and the "Mood Station" on the Wonderland of New Hope Liuhe platform. We have refined our employee feedback mechanism maintaining an Talent Pipeline Development

open-door policy for suggestions. Our employee service platform features an HRSEC hotline and a Feishu service desk to receive employee input The Company is committed to developing core operational and professional capabilities aligning with its business development strategy. It conducts

suggestions or queries enabling us to address employee concerns promptly and establish a sustainable effective mechanism. in-depth analyses of both long-term and short-term strategic objectives to define clear directions for business expansion and technological innovation.Leveraging the results of talent inventory the Company assesses team capability alignment and core position competencies forecasts both long- and

Democratic Supervision: The Company has established clear channels for complaints and whistleblowing. All reports submitted by employees are short-term talent gaps and formulates talent allocation plans that meet business development needs thereby ensuring a sustainable talent supply.subject to thorough investigation with strict confidentiality maintained throughout the process safeguarding employees' legal rights and supporting

the sustainable and healthy development of the Company. The Company adheres to the principles of fairness and professionalism in recruitment processes. To this end it has established diverse talent

acquisition channels including campus recruitment social recruitment employee referrals school-enterprise partnerships and internship programs.These channels enable us to attract a wide range of exceptional talent and enhance the efficiency of matching candidates to suitable positions. Our

interviewers undergo rigorous selection training and assessment before they are cleared to conduct interviews. They are also subject to regular

comprehensive evaluations to maintain fairness and professionalism throughout the interview process. Furthermore we actively seek feedback from

candidates regarding their interview experiences allowing us to constantly refine and optimize our procedures.KEY

PERFORMANCE

Key Performance 2024 (persons)

Total number of employees 41327

Male employees 31852

Number of employees by gender

Female employees 9475

The Company holds the first meeting of the fourth workers' congress. Employees aged 30 and under 12291

Number of employees by age Employees aged 31-50 23749

Talent Attraction and Retention Employees aged 51 and above 5287

The Company adheres to a talent-first strategy implementing comprehensive talent management practices. It actively promotes diverse recruitment Employee Senior management 10

channels offer competitive industry-level salaries and attractive benefits and has developed a differentiated tiered and classified talent system. It has Composition Number of Chinese employees by

also created a distinctive corporate training program to energize employees at all levels providing both talent assurance and intellectual support for Middle management 1428hierarchical level

high-quality development. This holistic approach aims to achieve optimal person-job fit effective talent identification and utilization team activation Frontline employees 39889

and organizational unity.Employees with high school diplomas or under 13993

Governance Strategy and Management Approach Employees with associate degrees 11064

N u m b e r o f e m p l o y e e s b y

educational level Employees with bachelor's degrees 13710

Revise management systems including the Employee Promotion/ Implement a "talent first" strategy focusing on the full lifecycle

Demotion Management Measures and introduce new policies management of selection utilization cultivation and retention. Employees with graduate/MBA degrees or above 2560

such as the Trial Measures for Cadre Point Management and Trial Create a differentiated tiered and classified talent system to

Measures for Cadre Probation Management . Ensure standardized promote person-job fit and diverse development opportunities. Employees from China (including Hong Kong Macao and Taiwan) 33912Number of employees by region

and legally compliant procedures for promotion incentives and Enhance the tiered talent cultivation system and key professional Overseas employees 7415

training thereby providing a fair transparent and stable career capability framework. Constantly improve the management of

development platform. the New Hope Academy online platform to foster a learning New hires during the reporting period 6325

organization.Develop differentiated compensation structures and incentive Newly recruited fresh graduates 262

mechanisms tailored to various job types to motivate employees

and nurture an entrepreneurial spirit.Impact Risk and Opportunity Management Indicators and Targets Employee Development KEY

New Hope Liuhe has establ ished and PERFORMANCE

Conduct regular talent inventory for key management and Constantly monitor and analyze key metrics including training constantly refines its employee training

professional positions. Apply the results to inform promotion expenditure training hours and training coverage to effectively and growth system. The Company has

implemented internal policies such as the Key Performance 2024development and incentive processes thereby mitigating the risk track and evaluate progress.of skill mismatches in critical roles. Establish specific indicators such as the reserve rate of mature Internal Lecturer Management Measures Total employee training expenditure RMB 6.7563 million

Develop well-structured training plans to avoid setting overly successors for key positions and the retention rate of high- and Learning Platform Management System

ambitious training goals without sufficient resources or providing potential talent. Regularly monitor the achievement status of exploring employee learning and development Total training attendance during the year 37600

training content that is misaligned with industry trends which could these indicators to strengthen the talent pipeline and retention models tailored to the organization's unique

compromise the effectiveness of employee skill development. strategies. characteristics. Through a multifaceted Total employee training hours 1184002.38

Implement monthly turnover monitoring and analysis for key systematic tiered and specialized talent Employee training coverage rate 76%

positions. Pay close attention to turnover rates in critical roles and development system we provide employees

among frontline production staff. with extensive opportunities for growth and Average training hours per employee 28.65

career advancement.Co-creating Value New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Tiered Leadership Development

The Company has established a comprehensive management talent supply chain and enhanced its tiered management talent training system. Through

various talent development initiatives such as EMBA Mid-level Training Program the Hope Plan and the New Talent Training Camp it cultivates and

retains outstanding talent for various levels of management. This approach allows us to build a robust pipeline of operational management cadres and

enhance the leadership and operational capabilities of both current and future management teams.Core

Senior Leadership Talent

Strengthening the "Head" Executives(including BU Visionary

Presidents)

General Manager Level

Enhancing the "Shoulders" (including current and reserve Regional/Area General Operational Management Talent

Managers and Branch General Standardized and Execution-Oriented

Managers)

Middle Managers Professional Management and Operational Talent

Reinforcing the "Waist" (Department Managers) Specialized and Versatile

Future Talent Reserve

Upgrading the "Foundation" Campus Recruits Structured Competent High-Potential

Core strength training for the pig farming business

Tiered Development System for Management Talent

Tiered Training Courses

High-Potential Through its High-Potential Quality Control Officer Training Camp the Company has implemented regional best practice

The Company has implemented a comprehensive new talent development strategy centered on centralized Quality Control courses and tailored professional curricula. This initiative targets 220 high-potential personnel in the quality control

New Talent

learning follow-up guidance and on-the-job experience. In 2024 we completed online centralized training Officer Training Camp track providing them with developmental empowerment. From this cohort we selected 42 outstanding high-potential New Employees Training Camp

for 310 new employees facilitating their successful transition into their professional careers. Quality Control Elite quality control officers as reserve quality control managers and enrolled them in the Quality Control Elite Program

Program ensuring a continuous pipeline of talent for key positions in the quality control track.The Company has launched the EMBA program for high-performing high-potential internal talent. The The Company has reinforced talent development in the nutrition technology track to enhance product quality and

aim is to complement academic qualifications and enhance capabilities integrating seamlessly into the Nutrition Technology support business operations facilitating the emergence of exceptional talent. In 2024 we provided empowerment

Company's leadership development system. The program is designed to cultivate senior managers in the Specialized Training training to 40 high-potential quality control and technical personnel.EMBA Program Chinese agricultural animal husbandry and food industry who possess systemic thinking outstanding

leadership skills and innovative spirit.In 2024 we conducted 8 course activities across 2 cohorts training a total of 84 mid to senior-level The Company has implemented a comprehensive career development system for the veterinary track establishing clear

managers. The program achieved a trainee satisfaction rate exceeding 92%. Veterinary Specialized progression pathways and realizing the full implementation of training certification processes. In 2024 we established

training bases across various squads and organized 15 professional empowerment training sessions for 257 veterinarians

Management Training

achieving a 93% pass rate in training assessments.The Company has organized specialized training classes for key personnel in our feed and pig farming

operations. These classes focus on developing the skills necessary to excel as a general manager including

Management and cultivating an operational mindset and comprehensive management abilities. The training aims to

Leadership Training transform managers of professional tracks and production sites into qualified well-rounded operational

leaders. In 2024 our feed business Mid-level Training Program selected 45 high-potential talents while the

Pig BG Mid-level Training Program identified 41 high-potential individuals for development.Professional System Development

To enhance critical professional roles such as nutrition technology quality control and veterinary medicine the Company has implemented a

comprehensive capability system for key professional tracks. We organize specialized training programs to bolster professional competencies in the Veterinary system advanced studies Nutrition technology specialized training

Feed Sector and the Pig Sector thereby fostering long-term competitive advantages.Co-creating Value New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Enhancing Online Training Competitive Compensation and Incentive System

Focusing on core business areas the Company has constructed a digital learning system for key talent. It consistently optimizes the New Hope The Company prioritizes comprehensive employee remuneration adhering to the principle of equal pay for equal work. It has developed differentiated

Academy online platform fostering the development of a learning organization. In 2024 we integrated our training platform with daily office systems compensation strategies and incentive mechanisms tailored to various job roles encompassing both fixed compensation and variable incentives. This

empowering 1700 core staff members. The total online learning time for the year reached 172918.38 hours with 13610 attendances averaging 12.71 approach ensures employees receive fair compensation for their work while motivating them to innovate and contribute to the organization's success.hours per employee. Fixed compensation is disbursed monthly based on predetermined amounts primarily considering employees' key competencies including work

experience educational background position and market scarcity. Short-term incentives such as special bonuses or annual bonuses are designed to

Expanding External Resources motivate the achievement of company departmental and individual performance targets. Medium to long-term incentives comprise equity incentives

and bonus pool incentives primarily offered to core employees to align the interests of shareholders the Company and employees while retaining

The Company actively cultivates partnerships with external professional institutions integrating high-quality educational resources to provide key talent. We regularly monitor and assess market compensation levels and annual salary increases to ensure our remuneration packages remain

employees with diverse learning and development opportunities. In 2024 we obtained independent evaluation qualifications for senior animal competitive. Additionally we closely link compensation to the Company's overall operating performance and individual achievements maintaining

husbandry technicians and senior veterinarians deeply engaging in the cultivation and certification of leading talents in the agricultural and animal internal equity.husbandry industry. This initiative promotes continuous improvement in both the quantity and quality of senior talent.Internal Trainer Development

Employees' living wages are determined based on local average salaries economic conditions consumer price indices

To promote the accumulation and transfer of knowledge and skills the Company consistently strengthens its internal trainer team. It has formulated

Living Wage and housing costs. The living wage is set to be no less than the local minimum wage standard. Under full attendance

the Internal Lecturer Management Measures to standardize certification and operational management provide empowerment training and motivate conditions wages are paid in full with average actual wages significantly exceeding the living wage.internal trainers through annual excellence awards benchmark promotions and class hour incentives. These efforts enhance teaching standards

and provide robust faculty support for our internal training. During the reporting period we continued to advance internal trainer certification and

development incorporating these into employee development systems such as promotion assessment and excellence evaluation. Performance-sharing system is implemented for management and functional employees.Differentiated

Compensation Piece-rate system is implemented for frontline production workers.Promotion and Incentives Structures

Commission-based system is implemented for sales personnel.The Company places great emphasis on employee development stimulating potential by constantly refining employee promotion management systems and Incentive

and compensation incentive mechanisms. We encourage employees to excel in their roles and make significant contributions offering comprehensive Mechanisms Position-grade salary and a performance-based wage system is implemented for hourly employees.career development support and fair open advancement opportunities.Clear Career Development Paths In accordance with the 2022 Employee Stock Incentive Plan the Company unlocked the second phase of restricted

Based on the talent structure characteristics of our industries and sectors the Company has created differentiated tiered and classified talent systems shares and employee stock ownership plans as well as the first phase of reserved restricted shares granted in 2023.for personnel with varying attributes. We have established three major career tracks: "M" for management and operational talent "P" for key sequence The Company launched the 2024 Employee Stock Ownership Plan targeting core personnel advancing the

professional talent and "O" for vocational skills talent. Each career track is further divided into multiple sequences and job types offering employees implementation of its long-term incentive mechanism to retain and motivate key management and core staff.diverse development paths. The equity incentive mechanism includes individual performance evaluations with unlocking ratios linked to different

evaluation levels.The Company conducts regular talent inventory for key management and professional positions comprehensively evaluating the quantity structure

and competency of talent at all levels and formulating capability development plans for talent echelons. In 2024 we consistently improved our talent

evaluation standard system establishing competency profiles and evaluation criteria for key management position successors. These are applied in

critical management processes such as reserve talent selection training promotion and assessment. We also optimized qualification standards for

professional sequences including technical R&D quality control and veterinary medicine serving as standard criteria for professional talent selection Bonus Pool Distribution Mechanism: The Company evaluates performance based on three key indicators: core

promotion and external recruitment. financial results operational excellence and risk control. It has implemented a bonus reserve mechanism for sector

BUs that are assessed using profit-based accrual methods especially in years with high market volatility. This approach

Based on assessment results we newly introduced the Trial Measures for Cadre Point Management and Trial Measures for Cadre Probation helps balance incentive intensity across different years for both headquarters executives and sector BUs.Management and revised the Employee Promotion/Demotion Management Measures. These clearly define promotion cycles qualification conditions Rolling Retention Mechanism: For core personnel allocated bonuses are subject to a rolling retention mechanism

and review processes providing employees with equitable and transparent promotion channels and development opportunities. disbursed only after passing the following year's comprehensive evaluation discouraging short-term thinking.KEY

Management Track PERFORMANCE

Shareholding Team Professional Track Skills Track

BG/BU President

Squad President Total employee compensation: RMB

Chief Expert/Chief Engineer 5909.9388 millionRegional General Manager

Regional/Area General

Manager Senior Expert/Engineer

B ra n c h a n d S u b s i d i a r y

General Manager/Large Advanced Expert/Engineer Strengthening Performance Evaluation and Incentives

Farm Manager Expert/Engineer

The Company has established a comprehensive corporate performance indicator database based on the Performance Management Measures . This

Senior Manager/Manager/ Intermediate Expert/ Farm Manager system incorporates multi-dimensional performance evaluation criteria including work achievements work ethic and adherence to daily behavioral

Deputy Manager Engineer

Junior Expert/Engineer Line Manager/Workshop norms. We employ an agile performance management method conducting differentiated assessments by level and layer on a quarterly basis to ensure

Director/Elite Operator fair and effective performance evaluations. Throughout the evaluation cycle we emphasize continuous performance communication primarily through

Supervisor/Senior face-to-face interviews. Department heads and supervisors regularly assess employees' work progress and address any issues providing appropriate

Technician

Advanced Technician support. Following the assessment the employee's direct supervisor provides feedback on the evaluation results discussing strengths and areas for

Staff Member / Assistant / Associate Specialist Intermediate Technician improvement while also outlining the next work plan. For employees rated C or D we analyze and diagnose problems propose improvement measures

Junior Technician and collaboratively develop clear improvement goals and pathways.Equity Incentives Bonus Distribution

Equity-based Medium to Long-term IncentivesCo-creating Value New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Furthermore the Company has enhanced its performance feedback mechanism establishing channels for employee performance feedback and Dual Prevention Mechanism

appeals. If employees have objections or concerns regarding their performance evaluation results they can submit a written appeal to the Human

Resources Department within five working days of completing the assessment providing relevant supporting documentation. Upon receiving a In accordance with the Safety Risk Classification Guidance the Company has instituted a dual prevention mechanism for safety risk hierarchical

written appeal the Human Resources Department conducts a thorough investigation of the matter. If the investigation reveals misconduct or serious control and hidden danger investigation and management. Each subsidiary and branch company conducts comprehensive safety risk identification

dereliction of duty by relevant personnel or fabrication of facts by the appealing employee the Company will take appropriate disciplinary action. assessment and control tailored to their specific types and characteristics. They focus on identifying potential production safety hazards to effectively

prevent various safety incidents. Furthermore subordinate units are encouraged to establish production safety reporting systems broadening channels

for employee participation in production safety supervision and management thereby strengthening production safety oversight.Occupational Health and Safety

The Company strictly adheres to the requirements of laws and regulations such as the Work Safety Law of the People's Republic of China and the

Law of the People's Republic of China on the Prevention and Control of Occupational Diseases . It has improved the production safety management

protocols and regulations enhanced production safety management standards and effectively safeguarded employees' lives company assets and the

safe operation of various production facilities contributing to the Company's stable operation and sustainable development. As of the end of 2024

55 of our branches and subsidiaries have obtained Level 3 Production Safety Standardization certification covering all business operations as well as Safety Risk Hierarchical Control

contractors and suppliers.We develop scientific safety risk identification procedures and methods customized to each unit's types and

Safety Risk Identification characteristics. We comprehensively conduct safety risk identification establish a safety risk database and

Production Safety Management update it regularly. Our safety risk identification process covers every critical production process and stage.Refining Management Mechanism

Safety Risk Assessment We evaluate and categorize identified safety risks comprehensively considering causal factors inducing The Company has intensified its focus on production safety management awareness and refined its internal management systems. These include the

Production Safety Management System Production Safety Incident Management System Production Safety Incident Accountability Management causes of accidents harmful substances and injury modes to determine safety risk categories.System and Confined Space Safety Management Measures . We constantly enhance our production safety management framework establishing clear

production safety objectives and plans while implementing a comprehensive production safety responsibility system. Annually employees at all levels We implement effective control measures for safety risks based on their characteristics addressing aspects

sign a Production Safety Responsibility Agreement with adherence to this agreement incorporated into performance evaluations. We have also linked such as engineering technology management education and training personal protection and emergency

safety performance to executive compensation ensuring that safety responsibilities are clearly delineated down to departmental and individual levels. Safety Risk Control response. We have established a comprehensive safety risk notification system and strengthened

Moreover the Company has integrated production safety into its audit process conducting rigorous annual reviews of the implementation of relevant production safety education and skills training to ensure that management at all levels and every employee

systems. When issues are identified we take swift corrective actions and diligently track their implementation to effectively elevate our production grasps the basic situation of safety risks and preventive and emergency measures.safety management standards. In 2024 the Company achieved 100% of its production safety management objectives.Production Safety Objectives 2024 Achievement Status

Implementation of the production safety information platform Achieved Production Safety Hazard Investigation

Completion of the safety officer certification training plan Achieved

We have established and implemented a production safety hazard investigation responsibility system that

Major risk control Achieved Hazard Investigation extends from key personnel to general employees. We provide necessary funding and technical support for

Responsibility System production safety hazard investigations ensuring production safety management personnel have sufficient

Pilot program for feed mill equipment management and production safety coordination; feed mill inspections Achieved time to participate in on-site hazard investigations.Production safety management during major holidays Achieved

Organizational Structure for Production Safety Management We have improved various inspection methods for production safety hazards including daily inspections Comprehensive Hazard

comprehensive inspections professional inspections seasonal inspections key period and pre-holiday

Investigation

inspections accident analogy inspections pre-resumption inspections and expert diagnostic inspections.Safety and Environmental This center is tasked with formulating company-wide production safety regulations providing guidance

Protection Center of Engineering supervision inspection and evaluation of production safety work across all operational levels and driving

Operations Department the implementation of production safety initiatives.Hazard Information We have established production safety hazard information archives and announce them to employees

Disclosure

These organizations form the foundation of our production safety management system. They are through information boards or other means.Production Safety Management

Organizations at Various Levels responsible for implementing production safety policies and objectives as well as executing production

safety management tasks. For identified production safety hazard items we promptly require relevant departments to implement

Time-Limited Rectification time-limited rectifications adhering to the "Five Determinations" (i.e. determining the responsibility

These entities are charged with establishing and maintaining comprehensive production safety measures time standards and personnel) principle and conducting closed-loop management. For major

Branch and Subsidiary Production of Hazard Items

Safety Management Organizations management systems and mechanisms within their respective branches and subsidiaries ensuring

hazards we ensure the "Five in Place" (i.e. rectification measures responsibility funding time limits and

alignment with company-wide requirements. contingency plans) policy.KEY KEY

PERFORMANCE PERFORMANCE

Total production safety investment: RMB 92.9281 million Number of injured employees: 107 Branches and subsidiaries covered by safety empowerment and supervision inspections: 376

Major production safety Incidents: 0 Total injury rate: 0.21% Safety hazards identified: 22968

Work-related fatalities (including dispatched workers): 4 Employee injury rate per thousand: 2.1‰ Safety management suggestions and recommendations proposed:

73.19 1036 4218Lost time injury frequency rate (LTIFR) *: Lost workdays due to work-related injuries: Safety hazard rectification rate: 99.29%

*LTIFR = (Number of lost time injuries) / (Total working hours in the accounting period) x 1000000Co-creating Value New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Reinforcing Emergency Management

The Company rigorously adheres to the Emergency Response Law of the People's Republic of China and the Measures for the Administration of

Contingency Plans for Work Safety Incidents . It has developed a comprehensive Emergency Management Plan and refined the responsibility system for

responding to production safety emergencies. We actively promote the establishment of production safety emergency response teams or emergency

rescue command centers across the organization. For potential safety incidents we have developed a robust emergency plan system to prevent and

mitigate significant risks. Dedicated or part-time emergency rescue teams have been formed equipped with essential protective gear and emergency

supplies. Mutual aid agreements have been established with neighboring enterprises. Regular emergency drills and practical training are conducted

annually aiming to enhance employees' ability to respond to unexpected events and safeguard the lives and property of our workforce and the public.In 2024 the Company conducted a total of 1656 emergency drills for production safety.Managing Contractor Safety

The Company has standardized its contractor management process within the Production Safety Management System . Prior to contractors engaging

in specific activities at our production and operation units we implement a thorough vetting process rigorously assessing their production safety

qualifications and past performance. We establish clear production safety requirements and responsibilities by signing safety management agreements

with contractors. Our team regularly inspects contractors' safety conditions monitors their operations for safety compliance evaluates their

performance and promptly addresses any issues identified. During operations if a contractor violates our production safety regulations and refuses to

rectify the situation we mandate an immediate cessation of their activities. In the event of a first or second-level production safety incident caused by a

contractor we internally publicize their information throughout the Company.Handling Safety Incidents

The Company adheres to the principles of "hierarchical management seeking truth from facts respecting science and the four-no-exemption rule."

It has implemented a Production Safety Incident Management System and a Production Safety Incident Accountability Management System to

standardize the approach to managing and handling safety incidents. Following an incident of any scale or type the responsible unit leader promptly

initiates emergency rescue efforts to minimize casualties and property damage. We form an incident investigation team to conduct internal inquiries

regularly assess the situation and implement thorough corrective measures to eliminate safety hazards completely. Our accountability system for

production safety incidents assigns direct responsibility and leadership accountability based on the severity and nature of the incident. Furthermore The Mandalay company in the Myanmar Region won the Best Practice Award in the 5th ASEAN Occupational Safety and Health Competition.in cases of work-related injuries we strictly adhere to relevant laws and policies by providing timely and fair compensation to affected employees and

their families while also offering psychological support and humanitarian assistance.Promoting Safety Awareness Occupational Health Protection

The Company embraces a people-centric education-first approach to cultivate a distinctive safety culture. We emphasize employee education and The Company prioritizes employee safety during operations safeguarding their lives health and associated rights. It meticulously follows the

training on production safety laws regulations knowledge and operational skills. This strategy aims to enhance our workforce's sense of responsibility requirements set forth in the Law of the People's Republic of China on the Prevention and Control of Occupational Diseases and the Management Rules

towards production safety improve their professional capabilities and refine their operational skills. We guide all employees to prioritize production for Labor Protection Supplies of Employers . We have enhanced our occupational health management system standardizing aspects such as frontline

safety at a fundamental level constantly improving overall safety consciousness and execution. employee training provision of personal protective equipment and operational process management. Our team conducts comprehensive hazard risk

assessments for key positions to identify and eliminate potential occupational health risks. We organize regular occupational health examinations

for employees in toxic and hazardous positions diligently conduct occupational health awareness campaigns and training and have established the

Employee Injury Incident Handling Procedures to boost frontline employees' self-rescue and mutual aid capabilities. As of the end of 2024 20 of our

branches and subsidiaries have obtained ISO 45001 Occupational Health Management System certification encompassing all business operations as

well as contractors and suppliers.In 2024 the Company established a comprehensive emergency response mechanism. We encouraged various office platforms branches and

subsidiaries to form dedicated emergency rescue teams conducting extensive emergency rescue training and practical drills in office areas. Additionally

we disseminated first aid knowledge to all employees through live online broadcasts and recorded sessions ensuring widespread accessibility.Fresh Meat Division: The Division has formulated an Occupational Hazard Emergency Rescue Plan equipped its facilities with emergency rescue

devices and conducts regular emergency response drills. Every three years a qualified third-party agency is commissioned to conduct an occupational

hazard assessment and provide an evaluation report. The Division also conducts regular testing of occupational hazard factors related to production

processes workplace environments and operational activities—including noise dust and toxic gases—to ensure all indicators remain within acceptable

limits.Overseas Sector: The Sector has improved its occupational health-related policies and documentation in accordance with the laws and regulations

of each host country to safeguard employee health. Measures include regular monitoring of the working environment periodic health examinations

and the organization of first aid training sessions. Among them the Indonesia Region has progressively optimized positions with occupational disease

Fire rescue drills in the summer Distribution of emergency response cards at production sites to enhance risks and introduces psychological health consultation services for employees. Throughout the year dynamic monitoring and continuous improvement

safety awareness and emergency handling capabilities are conducted ensuring a reduction of risk points by over 10% annually. The region achieves 100% coverage of occupational health examinations and

increases employee participation in psychological health consultations by 5% each year. The Myanmar Region has procured comprehensive commercial

insurance for employees with a total coverage of 10 million Myanmar Kyat (approximately RMB 34000) and organizes annual health examinations.KEY

PERFORMANCE

KEY Employee occupational health examination coverage rate: 45.34%; Pre-employment

Production safety training sessions conducted across various levels: 11827 PERFORMANCE and annual physical examination coverage rate: 100%

Employee attendance in production safety training: 7162135 Investment in occupational injury insurance for employees: RMB 19.155 million

Total hours of production safety training: 505127 Occupational injury insurance coverage rate for employees: 57.63%Co-creating Value New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Empowering Farmers Case Empowering Agricultural Industry Upgrade through Inclusive

New Hope Liuhe constantly fulfills its corporate mission of "benefiting farmers and serving consumers." By leveraging its efficient intensive management Guarantees

system and comprehensive industrial chain resources the Company collaborates with farmers to explore mutually beneficial pig farming models. It

has innovated inclusive financial services to address farmers' financing challenges thereby empowering the standardization and modernization of

agriculture and animal husbandry with financial "living water." Yang Limei a pig farmer from Pingdu City Shandong Province has been engaged in pig farming since 2009. She initially

constructed 6 pig houses with a capacity of 1000 pigs but faced working capital constraints when expanding her operation.The Company promptly provided a working capital loan of RMB 600000. In 2020 when Yang initiated the construction of a

In 2024 New Hope Liuhe's Pig Sector established partnerships with modern farming facility and encountered further financial challenges we increased her loan limit to RMB 3 million. Through KEY years of technological upgrades Yang's old sheds have been transformed into a standardized fattening farm with 2000 pigs

PERFORMANCE over 3400 family farms across 23 provinces nationwide. reaching a total stock of 6500 pigs. This has resulted in an average annual income increase of over RMB 2 million establishing it as a notable modern standardized fattening pig farm in the area.Through the "company + farmer" model 8.89 million fattened pigs

were marketed generating RMB 3 billion in income for farmers.Assistance Model

To help farmers address the challenge of cost competitiveness the Feed Sector has introduced the innovative "company + farmer" assistance model.Leveraging our extensive resources and capabilities in procurement nutritional formulation and market analysis we provide eight comprehensive

supporting services for large-scale pig farm clients. These services include piglet procurement nutritional solutions financial support African swine

fever prevention and control pig insurance animal health services farming technology and pig sales services. This model helps clients achieve low-

risk high-efficiency and worry-free pig farming. Furthermore we have integrated the Jianzhubang farm data management software meeting the

production data and operational needs of large-scale pig farm owners. This enables them to monitor pig production dynamics in real-time making pig

farming more manageable and efficient for farmers.Compared to traditional pig farming models our assistance model offers three core advantages through full integration full synergy and full

professionalism comprehensively helping farmers improve their pig farm economic benefits.Eight Major Services of the Assistance Model

Piglet Procurement We assist farms in sourcing high-quality local piglets or New Hope Liuhe's internal piglets adhering to stringent double-negative standards.Nutritional Solutions We provide precise product packages tailored for large-scale pig farms fully meeting the nutritional needs of pigs at various growth stages.Financing Support We resolve financing difficulties delays and high costs through New Hope Liuhe's financial platform and inclusive guarantees.African Swine Fever We strictly adhere to four levels of biosafety classification to ensure environmental and product safety.Prevention and Control

Pig Insurance We help farms purchase comprehensive insurance to secure the pig farming process.Before and after comparison of Yang Limei's pig house upgrades

Animal Health Services We offer New Hope Fenglan animal health products and over 200 specialized animal health testing services.Farming SOPs We provide technical guidance on-site services process control and farming SOPs to optimize operations.Pig Sales Services We professionally assess market conditions connect multiple sales channels and ensure rapid capital turnover for farmers. Wei Kaipeng from Pingyi County began chicken farming in 2015. In 2018 responding to the call for standardized

construction he built 10 modern sheds with a capacity of 300000 chickens. Facing a capital shortage due to equipment

purchases our guarantee company provided an equipment loan of RMB 3 million. Through a value preservation contract

with Liuhe Pingyi Cold Storage Plant direct supply of chicks feed and medicine was achieved effectively reducing farming

Financial Support for Agriculture costs. After the project's implementation annual revenue exceeded RMB 5 million enabling Wei to clear all loans within three years and expand to a 390000-chicken capacity. In 2021 when his farm faced an infectious laryngotracheitis outbreak

The Company amalgamates resources from banking insurance and other sectors leveraging the agricultural and livestock industry chain to innovate the Company proactively issued an RMB 1 million loan for support facilitating rapid production recovery and helping Wei

a guarantee-centric supply chain financial model. This approach constantly enhances our inclusive guarantee services. Through our specialized teams overcome operational difficulties. He has now become one of the largest direct suppliers of meat chickens in the area.operating across 28 provinces and cities nationwide we offer financing guarantee services to both upstream and downstream clients within the industry

chain. This initiative addresses the challenges of difficult and costly financing for agricultural industry chain participants thereby establishing a robust

foundation for advancing industry chain development. By the end of 2024 the Company has served 212700 instances cumulatively facilitating RMB 75

billion in financing effectively supporting and benefiting the agricultural sector.Financing Guarantee Services

Adhering to the principle of "government support bank cooperation farmer participation and market operation" the Company actively promotes

innovation in business models operational processes risk prevention institutional frameworks and management systems. We have established a multi-

tiered credit guarantee system offering 35 specialized products across 7 major categories. Additionally we consistently develop and optimize financing

channels effectively reducing financing costs for farmers.In 2024 the Company delved deeper into bank-enterprise cooperation models forging partnerships with state-owned banks joint-stock banks city Before and after comparison of Wei Kaipeng's standardized chicken house renovation

commercial banks and foreign banks. By leveraging our expertise in risk management for farmers we have collaborated with 22 banks securing a total

credit line of RMB 12 billion.Co-creating Value New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Building an Integrated Industry-Finance Platform KEY In 2024 667300 tons of grain were saved equivalent to the grain

The Company's supply chain financing initiative began in 2007 initially offering guarantee loans to downstream farmers in the feed industry through PERFORMANCE

traditional offline models with substantial collateral and strong guarantees. In 2021 we completed the construction of our industry-finance platform yield from 1.33 million mu of cultivated land.focusing on resolving the challenges of difficult financing and high interest rates for industry chain clients. In 2024 we established an upgraded version

of the supply chain financial service platform forming an inclusive agricultural industry chain financial model with "data layer + product layer + risk

control layer + scenario layer." This enhancement further improved loan efficiency and better served our broader agricultural and livestock clientele. As A total of 667300 tons of grain were saved equivalent to the grain yield from 1.33 million mu of cultivated land.of the end of 2024 the platform had served 13934 industry chain clients cumulatively with a total loan amount reaching RMB 30.283 billion. Of this total:

– 565000 tons of grain were saved through feed optimization (including 320000 tons of soybean meal and

2024 Grain Saving Performance 245000 tons of corn);

– 102300 tons of grain were saved through farming efficiency improvements (including 227300 tons of feed saved

by continuously improving PSY reducing the feed-to-meat ratio and shortening the number of days required to

Upstream and downstream clients in our Feed Sector and Pig Sector can access financing through the platform. reach 115 kg live weight).Customer-Centric Approach

Meeting Industry Chain

We actively expand funding channels and products allowing clients to choose suitable financing products based on

Financing Needs Collaborated with Northeast Agricultural University on the project "Key Technological Innovations in the

their experience preferences interest rate preferences and term preferences. Exploration and Safe Utilization of Non-Grain Feed Resources" promoting quality and efficiency improvement of

non-grain feed resources achieving overall feed sourcing - saving - safety effects and effectively alleviating feed

We have achieved data integration across various internal business systems including core ERP and cloud farming Grain Saving Alliance Actions resource shortages and grain import pressure.One-Stop Service Enhancing systems and implemented bank-enterprise direct connections through API SDK and other methods. and Achievements Conducted corn-saving initiatives in conjunction with the "Development and Product Creation of New Energy

Industry Chain Client Feed Resources as Corn Substitutes" a sub-project under the National Key R&D Program for the 14th Five-Year

Financing Experience Financing clients can complete loan applications and manage the entire loan lifecycle in real-time using mobile Plan.terminals without leaving their homes. Implemented soybean-saving measures to reduce import dependence in line with the "Frontier Technologies and

New Product Creation for Protein Feed Bioengineering Manufacturing" a sub-project under the National Key R&D

Program for the 14th Five-Year Plan.We have realized the alignment of capital demand industry and fintech information services through a tripartite

Creating Win-Win transaction structure involving capital providers clients and core enterprises.Cooperation Building New

Hope Liuhe's Financial Industry chain clients can select financing products and apply for loans based on their transaction scenarios scale

Platform and financing preferences meeting their operational needs.Banks can leverage our industrial fintech services to precisely target small and micro inclusive loans.Case R&D and Promotion of Bio-Environmental Feed

Community Engagement

New Hope Liuhe consistently fulfills its social responsibilities and strives to be an amicable investor. The Company is committed to enhancing feed grain

reduction and substitution levels thereby contributing to food conservation efforts. Through brand-driven philanthropic activities we aim to inspire

hope create value for local communities in our operational areas and foster a positive atmosphere of compassion and social responsibility.Safeguarding Food Security

The eradication of poverty and the elimination of hunger are critical global challenges. Feed grain conservation is particularly vital for China's food

security. As a leading feed enterprise New Hope Liuhe launched the Grain Saving Special Action in 2022. The initiative aims to improve feed efficiency

by 1% annually for five consecutive years potentially saving 1.5 million tons of grain equivalent to conserving over 3 million mu of arable land. In 2024

the Company further intensified its grain-saving initiatives across multiple sectors including livestock breeding and farming feed formulation and New Hope Liuhe has integrated globally leading enzyme hydrolysis technology microbial fermentation processes low-

production and grain and feed storage and transportation. protein diets and precision nutrition formulation systems. By leveraging near-infrared technology databases and digital

nutrition systems to improve the utilization of biological raw materials the Company has established a comprehensive

biological feed product matrix covering all categories of livestock poultry and aquaculture. This initiative benefits 86000

farmers across 29 provinces helping cooperative farms increase annual income by RMB 23000 per 100 head of livestock

Industry while promoting the resource utilization of over 450000 tons of agricultural by-products such as straw annually.Honors To further promote bio-environmental feed and conserve grain resources the Company has spearheaded the formulation

of four industry standards including the Technical Specifications for Fermented Feed which have been implemented

nationwide. Related technological achievements have been included in the National Green Low-Carbon Technology Catalog.Shandong Feed Indus t ry Ef f i c i ency Additionally we have increased investment in the R&D and production of bio-environmental feed. In 2024 6.3 million tons

Improvement and Quantity Reduction Grain- of bio-environmental feed were produced with specific targets set for 6.6 million tons in 2025 and 7 million tons in 2026.We innovatively developed and launched the Fulixinmei fermented liquid feed product under the Green Imprint series which

Saving Demonstration Product - Low Protein can regulate intestinal flora improve nutrient absorption efficiency and achieve a 3.7% increase in feed conversion efficiency

Amino Acid Balanced Feed reducing feed waste by 12 kg per fattening pig throughout its lifecycle.

5th Feed Industry Innovation Product By the end of 2024 the Company had promoted a cumulative total of 18 million tons of bio-environmental feed directly

Technology Selection Event - Quality reducing the use of traditional protein raw materials such as soybean meal by 1.21 million tons equivalent to conserving 2

Improvement and Efficiency Enhancement million mu of arable land resources.Feed Demonstration ProductCo-creating Value New Hope Liuhe Co. Ltd. 2024 Sustainability Report

government agencies. Our efforts include conducting technical training sessions and sharing best practices to promote localized farming techniques.We emphasize local raw material procurement by developing localized purchasing norms and standardized procurement processes thereby stimulating

local supply chain development.Since 2016 our Bac Giang branch in the Vietnam Region has collaborated with Bac Giang Agriculture and Forestry University to establish the New

Hope Bac Giang Animal Health Center. This facility serves livestock and poultry farmers across the region. By the end of 2024 it had invested 2.35

billion Vietnamese dong (equivalent to RMB 705000) into relevant projects constantly elevating local animal health standards.The Philippines Region has implemented a localization operation and development policy focusing on extensively recruiting local talent and fostering

close partnerships with local communities logistics providers and suppliers. This strategy indirectly stimulates related industry growth and enhances

community economic vitality. The Myanmar Region has refined its procurement strategy to increase the use of local value-added raw materials

including fish meal fish fillet powder shrimp shell powder and soybeans. The Indonesia Region actively promotes collaborations with local suppliers

boosting the localization rate of raw material procurement and effectively reducing transportation time and costs.KEY

PERFORMANCE

Local employee hiring ratio in the Overseas Sector: 94%

Local procurement ratio in the Overseas Sector: 25%

Case 25 Years in Vietnam: Cultivating Chinese Brand Influence through

Localization

As a pioneer in China's agricultural and animal husbandry industry's global expansion New Hope Liuhe has steadily grown

its presence in Vietnam since 1999. Beginning with its first company in Ho Chi Minh City followed by Hanoi in 2000 and

Binh Phuoc breeding company in 2018 the Company has established a significant footprint. By the end of 2024 New Hope

Liuhe operated 9 feed companies and 3 breeding companies in Vietnam with its total feed production ranking among the

Long queue of trucks outside New Hope Feed Factory in Ho Chi Minh City Vietnam top five in the Vietnamese market solidifying its position as a major Chinese player in Vietnam's feed industry. Leveraging

its superior feed products the Company has deeply penetrated the Vietnamese market capitalizing on local raw materials

climate advantages and competitive pricing to expand into the pig farming industry chain. New Hope Liuhe has become the

first Chinese enterprise to venture into pig farming in Vietnam annually supporting the prosperity of over 1200 distributors

Promoting Local Development in Operational Areas and 300000 farming households.As a pioneering private enterprise that ventured overseas in 1999 the Company has been deeply committed to implementing the national Belt and The Company actively integrates into the local culture providing thousands of job opportunities with a local employment

Road Initiative (BRI) during its 25 years of international expansion. We have consistently advanced our industrial presence in 14 countries across rate exceeding 95%. Through deep integration of language lifestyle and work practices it has established unique

Southeast Asia and Africa. Through strategic measures such as creating jobs promoting localization and supporting local residents we have injected advantages in Vietnam. These include high-quality support services synergies in upstream and downstream sectors such as

significant momentum into the sustainable economic and social development of our host communities. In 2024 during the 10th anniversary celebration seedling and animal health and robust distribution and direct sales networks. Consequently the Company has cultivated a

of the BRI our Bangladesh Region was honored as one of the 16 key Chinese enterprises developing in Bangladesh by the Chinese Embassy in positive reputation and substantial influence in the Vietnamese market. In recognition of its success the Company's Vietnam

Bangladesh exemplifying the tangible benefits of win-win cooperation between China and its international partners through concrete actions. expansion was featured in the Ministry of Agriculture and Rural Affairs' Report on China's Agricultural Foreign Investment

Cooperation in 2024.Considering Community Impact

Before establishing overseas regions the Company makes preparations in strict accordance with international standards and the laws and regulations

of the destination country. It conducts comprehensive analyses of target markets evaluating political stability economic growth potential and

competitive landscapes within the industry. The assessments encompass overseas business prospects policy support and in-depth market research.Prior to construction and production initiation we meticulously consider site selection to ensure full compliance of all overseas operations. During

production we implement environmentally friendly technologies optimize processes and carefully schedule construction activities. By establishing

ecological buffer zones or green areas and enforcing stringent biosafety measures we strive to minimize adverse community impacts such as noise

dust and environmental pollution. When necessary we engage with local residents through site visits and surveys to address potential social impacts

thereby fostering community trust and mitigating operational risks.Fostering Community Development

The Company implements a localization strategy for overseas development forging strong partnerships with local entities. It prioritizes the localization

of talent and supply chain procurement effectively contributing to regional economic prosperity and harmonious social development. This approach

enhances our corporate social responsibility and strengthens our regional influence.Supporting Local Economies Vietnamese media coverage of New Hope Liuhe's environmentally friendly farming model

The Company actively participates in modernizing local agriculture through close collaboration with host country farmers cooperatives andCo-creating Value New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Cultivating Local Talent Engaging in Philanthropy

The Company employs a comprehensive talent development framework to enhance skills and provide professional training for local talent consistently The Company steadfastly adheres to the principle of "rooted in society and giving back to society" actively engaging in philanthropic endeavors.fostering cross-cultural communication. Our focus on employee motivation and welfare contributes to the synergistic development of local employee Through signature charitable initiatives such as the Hope and Wish Plan and the Warm Winter Campaign we consistently demonstrate our commitment

capabilities and corporate growth. We have implemented scholarship and internship programs in countries such as Myanmar and Egypt. The Egypt to social responsibility. In response to natural disasters caused by extreme weather we ensure that the basic needs of affected populations are met

Region has established partnerships with prestigious local institutions including Cairo University Alexandria University and Beni-Suef University to exemplifying our dedication to corporate citizenship through tangible actions.expand talent acquisition channels and promote long-term sustainable development.Brand-driven Philanthropic Initiatives

The Company is committed to supporting vulnerable groups in society and aiding the development of remote rural areas and children's growth. We

have established two flagship philanthropic programs: the Hope and Wish Plan and the Warm Winter Campaign which exemplify our dedication to

creating a positive impact through small acts of kindness.Hope and Wish Plan

Since 2016 the Company has orchestrated 9 consecutive seasons of the Hope and Wish Plan mobilizing employees and compassionate individuals to

donate gifts to children in impoverished mountainous regions. By the end of 2024 we had fulfilled the Children's Day wishes of 22000 children across

the country.In May 2024 the Company launched the 9th season of the Hope and Wish Plan. Our volunteers traveled to various locations including Xide County in

the Liangshan Yi Autonomous Prefecture of Sichuan Province Longzhou County in the Guangxi Zhuang Autonomous Region and Luochuan County in

Shaanxi Province. They delivered festive gifts to 906 primary school students helping them realize their Children's Day aspirations.The Egypt Region initiates strategic cooperation with Cairo University and The Pig Sector's overseas squad participates in charitable donations in

holds a recruitment fair. Vietnam.Vietnam North Region: The region emphasizes the development of a local leadership pipeline. Chinese managers are required to master the local

language and pass relevant examinations. Through mentorship by Chinese managers outstanding local employees are nurtured and promoted

achieving mutual integration. In 2024 local managers constituted 49% of departmental supervisors and above in regional companies while local

employees filled 80% of key (reserve) positions.Philippines Region: The region has implemented a localized talent development plan offering career advancement opportunities to Filipino employees

through pre-employment training skill enhancement courses and management development programs. In 2024 over 50 training activities were

conducted involving more than 800 attendances which improved employee skill proficiency and established a solid foundation for career growth.Indonesia Region: The region offers technical training sessions delivering systematic courses on critical aspects such as feed utilization farm

management and disease prevention and control. Technical teams are assigned to provide on-site one-on-one guidance helping farmers optimize

breeding practices and improve production efficiency. In 2024 over 50 training activities were organized with 2000 farmer attendances. The 9th season of the Hope and Wish Plan reached Xide County in The 11th season of the Warm Winter Campaign reached Luogan Village in Meigu

Liangshan. County Liangshan.Bangladesh Region: In partnership with the Asian Development Bank the region provides free technical and financial literacy training for female

farmers. From 2023 to 2024 a total of 4507 farmers were trained effectively empowering local women.Caring for Community Residents Warm Winter Campaign

New Hope Liuhe actively participates in social welfare initiatives in its overseas host countries engaging deeply with communities and practicing Initiated in 2014 the Company's Warm Winter Campaign has been conducted for 11 consecutive years reaching numerous remote impoverished and

philanthropy. former revolutionary areas. We have provided winter supplies to local disadvantaged groups and contributed to the construction of schools and nursing

homes. Over the past 11 years we have witnessed the rapid development of China's mountainous regions. Our efforts have evolved from initially

The Philippines Region has developed a Community Engagement and Sustainable Development Plan supporting local community education health donating winter clothing to providing production materials living supplies and technical support as well as promoting modern lifestyle practices. This

safety and post-disaster reconstruction through charitable activities resource donations and employee volunteer services. A robust system has been progression represents a shift from addressing basic needs to enhancing the overall quality of life.established for regular follow-ups and long-term support. For example the Bulacan company has organized a Back-to-School Donation Campaign

providing schoolbags and stationery to local village primary schools. The Luzon and Davao companies have made multiple food donations to support In 2024 for the 11th season of the Warm Winter Campaign the Company collaborated with the Sichuan Branch of the Agricultural Development Bank

underprivileged children. The Davao company has contributed medical supplies to regional health institutions organized employee blood drives and of China to donate 634 washing machines valued at RMB 320000 to Luogan Village in Jueluo Township Meigu County Liangshan Prefecture Sichuan

donated resources to the fire department to enhance community safety. Province. This initiative aimed to improve living conditions and hygiene for rural households.The Bangladesh Region collaborates with local governments to promote balanced rural nutrition and health with a focus on youth development.The Indonesia Region organizes volunteer teams to participate in various projects including community service environmental protection initiatives and

post-disaster reconstruction. In 2024 the Region's employee volunteers contributed a total of 1000 hours to public service.Emergency Relief and Disaster Recovery

Guided by humanitarian values the Company actively engages in the rescue relief and reconstruction efforts following natural disasters both

domestically and internationally. We strive to bring comfort and hope to affected populations demonstrating our social responsibility and commitment

as a multinational enterprise.Co-creating Value New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Case Overseas Subsidiaries Support Local Employees and Customers in

Disaster Recovery About This Report

The New Hope Liuhe Co. Ltd. 2024 Sustainability Report (hereinafter referred to as "thisreport”) is the 17th non-financial report publicly released by New Hope Liuhe Co. Ltd.Definition of Terms

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. Moreover the terms "country" and "government"

in the report refer to the People's Republic of China and its administrative bodies.Reporting Scope

Time Range: This report covers the period from January 1 2024 to December 31 2024.Organizational Scope: The scope of this report aligns with that of the annual consolidated

financial statements of the Company.Reporting Period: This report is an annual report.Basis of Preparation

This report has been prepared with reference to the GRI Standards issued by the Global

Sustainability Standards Board (GSSB); Self-Regulatory Guidelines No. 17 for Companies

Listed on Shenzhen Stock Exchange — Sustainability Report (For Trial Implementation);

Self-Regulatory Guidelines No. 3 for Companies Listed on Shenzhen Stock Exchange —

Preparation of Sustainable Development Reports ; the national standard Guidance on

Social Responsibility Reporting (GB/T 36001-2015); and the United Nations Sustainable

Development Goals (SDGs).The Bangladesh Region donates supplies to affected residents.In 2024 in response to floods and water-related disasters caused by Typhoon Yagi across multiple Southeast Asian

countries the Company prioritized employee safety and community rebuilding as critical missions. We promptly activated

emergency response protocols and deployed employee volunteer teams to conduct on-site rescue operations.Vietnam Region

The Region implemented proactive disaster prevention measures including arranging employee safety leaves and

stockpiling flood control supplies. Chinese managers were dispatched to severely affected areas such as Haiphong Quang

Ninh and Nam Dinh to support affected customers. RMB 1 million was allocated in special funds to assist end-users

in resuming production and self-recovery efforts. The Ho Chi Minh City company donated 10 million Vietnamese dong

through the Sichuan-Chongqing Enterprises Confederation.Laos Region

In active response to the government's flood control initiatives the Region donated 10000 flood prevention sandbags and

provided essential supplies to local farmers.Myanmar Region

From June to October the Region distributed living necessities to local employees benefiting approximately 1290

employees and their family members.Philippines Region

Following flood disasters our Bulacan subsidiary donated essential supplies including clothing and food to affected

employees helping them navigate challenging times and providing robust support for rebuilding their homes.Chairperson Liu Chang and senior executives visit the Port of Alexandria in Egypt.Key Performance Table New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Reporting Principles Environmental

This report adheres to the principles of materiality balance quantification and consistency. Indicator Unit 2024Indicators

Environmental Total investment in environmental

protection (excluding deprecia tion) million RMB 152.6553

The Principle of Materiality: The Company conducts a materiality assessment to identify and evaluate significant ESG issues relevant management

to the Company's operations and both its internal and external stakeholders and highlights these issues in this report. For more Diesel consumption liters 11761478.46

details on the materiality assessment process and its results please refer to the "Sustainable Development Management" section of

this report. Gasoline consumption liters 1275137.06

Natural gas consumption million cubic meters 106.9808

The Principle of Balance: This report reflects objective facts providing an unbiased disclosure of both positive and negative

information related to the Company. It presents a balanced account of Ahwit's endeavors across different ESG dimensions. During the Energymanagement Purchased electricity million kilowatt hours 1527.4204

reporting period no significant negative incidents were found that should have been disclosed but were not.Outsourced steam tons 458390.45

The Principle of Quantification: Where applicable the Company discloses quantitative ESG performance indicators and sets

Total energy consumption tons of standard coal 404713.72

performance targets. The measurement criteria methodologies assumptions calculation tools and conversion factors used for key

performance metrics are specified where relevant. Energy intensity tons of standard coal per RMB 1 million of revenue 3.93

The Principle of Consistency: This report maintains consistency in the statistical and disclosure methods for the same indicators Direct greenhouse gas emissions (Scope 1) tons of CO2 equivalent 264591.66

across different reporting periods. Should there be any modifications to these approaches comprehensive explanations will be

included in the report's notes to enable relevant parties to conduct meaningful analysis and evaluation. Indirect greenhouse gas emissions (Scope 2) tons of CO2 equivalent 930406.76

Greenhouse

gas emissions

Total greenhouse gas emissions tons of CO2 equivalent 1194998.42

Data Description

Due to the divestiture of the poultry and food segments in 2024 the Company's business structure has undergone significant Greenhouse gas emission intensity tons of CO2 equivalent per RMB 1 million of revenue 11.59

changes making previous years' data no longer comparable. As a result this year's sustainability report does not provide

retrospective comparisons with data from previous years. Starting from this reporting year we will establish a new data baseline to Total water withdrawal million tons 25.3924

ensure the continuity and comparability of future disclosures.Water intensity in pig farming cubic meters/head 2.5

Water resources

management

Source of Information Water intensity for slaughtering meat cubic meters/head 0.35

All the information and data used in the report are sourced from the Company's official documents statistical reports and financial

statements as well as information on sustainable development practices of each unit that have been gathered and reviewed by the Total Discharge Volume million tons 19.0581

responsibility management department of the Company. Where discrepancies exist between the financial data in this report and

those in the Company’s annual report the annual report shall prevail. Unless otherwise specified all monetary amounts mentioned in Total wastewater treatment volume million tons 18.1396

this report are measured in RMB. Chemical oxygen demand tons 9811.33

Assurance of Accuracy Waste management Total ammonia nitrogen emissions tons 496.77

The Company assures that there are no false records misleading statements or significant omissions in the contents of this report

and is responsible for its truthfulness accuracy and completeness. Non-hazardous waste tons 316024.45

Hazardous waste tons 5.42

Access to the Report

This report is published in a PDF electronic format. It is available for viewing and download on the Shenzhen Stock Exchange’s

designated information disclosure platform CNINFO (www.cninfo.com.cn) or on the Company’s official website at http://www.newhopeliuhe.com. If you have any questions or suggestions regarding the report please reach us via email at 000876@newhope.cn.Social Indicator Unit 2024

Indicators

Total investment in production safety million RMB 92.9281

Production safety Total occupational injury rate % 0.21

Total attendance of safety training attendances 7162135

Customer service Customer complaint handling rate % 100

Total R&D investment million RMB 270.2823

R&D innovation

Number of R&D staff persons 717

Total number of suppliers / 4696

Key Performance Table Supply chainmanagement Number of domestic sHong Kong Mac a o a n d u p p Taiw l i ea n r ) s ( i n c l u d i n g / 3872

Number of suppliers assessed / 4696

Total number of employees persons 41327

Economic Indicator Unit 2024 2023 2022

Indicators Male employees persons 31852

Gender structure

Operating revenue billion RMB 103.063 141.703 141.508 Female employees persons 9475

Employees

Total assets billion RMB 117.915 129.611 136.679 Employees aged 30 and under persons 12291

Feed sales volume million tons 25.96 28.76 28.42 Age structure Employees aged 31-50 persons 23749

Number of emby hierarchica

p

l l e

l ov

y

e

e el

s million heads 16.5249 17.68 14.6139 Employees over 50 years old persons 5287Key Performance Table New Hope Liuhe Co. Ltd. 2024 Sustainability Report

Social Indicator Unit 2024

Indicators Nutrition and Health Article 41 Article 42 Article 43

R&D 2-27，201-1，203-2，404-2

Employees with a high school education or below persons 13993

Employees with an associate degree persons 11064 Stringent Quality

Academic Article 44 Article 47 2-27，416-1，416-2

structure and Safety Control

Employees with a bachelor's degree persons 13710

Employees with a graduate degree MBA or above persons 2560 Improving Article 44 Article 47 2-25，2-26，2-27，417-1，417-2，418-1

Service Quality

Employees C h i n e sHong K

e eo n

m g

p

M

l o y e e s ( i n c l u d i n g e m p l o y e e s from acao and Taiwan) persons 33912

Regional

structure

Overseas employees persons 7415 Digital Empowerment Article 48 203-2，418-1

Total investment in employee training million RMB 6.7563

Nurturing Natural Ecosystems through Green Industry Practices

Number of employees participated in training attendances 37600

Annual training hours per employee hours 1184002.38 Sustainable Agriculture Article 31 Article 37 101-8，301-2

Article 30 Article 31 2-27，201-1，301-1，301-3，303-1，303-2，303-3，

Sustainable Operations

Indicator Index Table Article 33 Article 36 303-4，303-5，306-1，306-2，306-3，306-5

Instructions for use: New Hope Liuhe has reported the information referenced in this content index for the period from January 1

2024 to December 31 2024 in accordance with the Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Article 21 Article 22 Article 23

Exchange— Sustainability Report (For Trial Implementation) and with reference to the GRI Standards. 201-2，302-1，302-2，302-3，302-4，

Addressing Article 24 Article 25 Article 26

Climate Change 302-5，305-1，305-2，305-4，305-5

Reporting Framework Sustainability Reporting Guidelines GRI Standards 2021 (Referenced Framework) Article 27 Article 28 Article 35

Message from the Chair — — 2-11，2-22

About Us — — 2-1，2-6，201-1

Land Use and Article 32 101-1，101-2，101-4，101-7

Biodiversity Protection

Sustainable Development Article 12 Article 13 Article 14 Article 15 2-9，2-12，2-13，2-14，2-17，2-22，

Management Article 17 Article 18 Article 51 2-24，2-26 Co-creating Value to Achieve Common Prosperity

Materiality Assessment Article 5 Article 9 Article 51 2-7，2-8，2-23，2-25，2-26，2-27，2-30，201-

of ESG Issues 2-6，2-16，2-29，3-1，3-2，3-3Article 52 Article 53 3，202-1，401-1，401-2，401-3，403-1，403-2，

Empowering

Article 49 Article 50 403-3，403-4，403-5，403-6，403-7，403-8，

Responsibility Focus Article 38 Article 39 201-1，203-1，203-2 Employees

403-9，403-10，404-1，404-2，404-3，405-1，

Building a Strong Foundation for Growth through Effective Governance 406-1，407-1，408-1，409-1

Party Building Efforts —— ——

Empowering Farmers Article 38 Article 39 201-1， 203-2

Corporate Governance Article 52 2-9，2-10，2-11，2-15，2-16，2-26，2-27，405-1

Community Article 38 Article 40 201-1，203-1，203-2，204-1，413-1，413-2

Risk and Compliance EngagementArticle 52 2-25，2-27，207-1，207-2，207-3

Management

Appendix

Business Ethics Article 55 Article 56 2-15，2-25，2-27，205-1，205-2，205-3，206-1

About This Report —— 2-2，2-3，2-4，2-29

2-6，2-7，201-1，302-1，302-2，302-3，303-3，

Supply Chain

Article 44 Article 45 Article 46 2-6，2-27，203-2，308-1，308-2，414-1，414-2 Key Performance TableManagement —— 303-4，305-1，305-2，305-4，403-9，404-1，

Advancing Inclusive Nutrition and Health through Premium Products Indicator Index Table Article 57 ——Feedback Form

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