Muyuan Foods Co. Ltd.2022 Environmental Social & Governance ReportAbout the Report
Muyuan Foods Co. Ltd. (hereinafter referred to as “Muyuan” “Muyuan Foods” “the Company” or “we”)
hereby issues the 2022 Environmental Social and Governance (ESG) Report to communicate to all stake-
holders information concerning Muyuan’s policies measures actions and achievements in sustainable de-
velopment.Scope and Frequency
Unless otherwise specified the Report covers Muyuan Foods Co. Ltd. and its subsidiaries
during the period from January 1 2022 to December 31 2022. Description in some parts of
the Report goes beyond the above period. The Report is issued annually.Reference
The Report is prepared to meet applicable standards for disclosing sustainable development
information with consideration to the industry background and features of the Company. The
compiling of the Report is with reference to Chinese and foreign CSR reporting standards
and guidelines including the Sustainability Reporting Standards of the Global Reporting
Initiative (GRI Standards 2021) issued by the Global Sustainability Standards Board (GSSB)
the Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-
CSR 5.0) issued by Chinese Academy of Social Sciences (CASS) and the ISO 26000: Guid-
ance on Social Responsibility issued by the International Organization for Standardization
(ISO).Availability
The Report are available in both print and electronic form. The electronic form could be read
and downloaded on CNINFO (www.cninfo.com.cn) a website accredited by China Securi-
ties Regulatory Commission (“CSRC”) for information disclosure of listed companies and
the Company’s website (www.muyuanfoods.com).Notes to the Report’s Data
The Report’s data is all extracted from internally collected data public documents sustain-
able development cases reported by subsidiaries and qualitative and quantitative question-
naires prepared for reporting.Currency
Unless otherwise specified all monetary amounts quoted in the Report are presented in Ren-
minbi (“RMB”).
2 01Content 04 Environment 36 Performance
Report
Continuous Improvement in En- Water Resources Management 45 100
About the Report 01 02 ESG Management 12 vironmental Management 38 Emissions Management 47
Crop-Livestock Cycle 39 Carbon Emissions and Ad-
Message from the Chairman 04 Biodiversity and Land Resource 40 dressing Climate ChangeESG Management Structure 12 47Utilization Index Table 103
Strategy of ESG Management 13 Comprehensive Control of Eco-
44
Muyuan Culture 06 Muyuan’s ESG Indicators 14 logical Impacts
Assessment of Material Topics 16
05 Society 52 Reader Feed-
01 About Muyuan 08 03 Economy and Corporate back 113Governance 20 Product Responsibility Manage- Creating a Win-Win Industrial
ment 54 Ecosystem 76
Company Profile 08 Optimizing Corporate Governance 22 Ensuring Animal Welfare 60 Employee Welfare 78
Business Performance 09 Operation with Integrity and Compliance 28 Creating Value Together and Promoting Community Devel-
Sharing the Future 66 opment 91
Development of Muyuan’s ESG 09 Scientific and Technological Innovation 33 Win-Win Development with 72
Awards and Recognition in 2022 11 Value Chain Partners
02 03Message from the Chairman
2022 was a year full of challenges and opportuni- In 2022 the Company’s ESG construction added a highlight to our high-quality development. In terms of
ties for all Muyuan people. Geopolitical conflicts governance the Board of Directors established the Sustainability Development Committee. In terms of
intensified and the game of great powers had a environment we adhered to the green development path promoted the Crop-Livestock Cycle actively pro-
profound impact on the global economy. Extreme moted green energy projects such as photovoltaic power generation and biogas utilization and compiled
weather in various places made people more aware and released the Muyuan Green and Low-Carbon Action Report 2021. In terms of employees we enhanced
of the necessity and urgency of climate action. Pe- personnel recruitment and staff training established a fair and effective promotion and reward mechanism
riodic fluctuations in hog production capacity led shared the achievements of enterprise development with employees to promote common prosperity. In the
to volatility in hog prices affecting the profitabil- community we continued to implement active community policies investing more than 16 billion yuan in
ity of all companies in the industry. Against such promoting the development of industries in locations where we operate and improving the infrastructure
background Muyuan people firmly practiced the and education.corporate core value of “creating value and servingthe society” focused on technical issues achieved After years of development we are fully aware that ESG is the cornerstone of a company’s survival and
breakthroughs at the front line of the business con- high-quality development and it is a protective system in the face of shocks. Muyuan continues to enhance
tinued to promote organizational upgrading and our foundation in technological innovation product quality management industrial ecology building
improved the company governance system. With human resources etc. In the past year we have shown excellent resilience in the face of the industry cy-
further improved operational achievements the cle trough and extreme weather events. Thanks to our long-term and unremitting efforts Muyuan’s ESG
ESG work has also stepped into a new level. performance has also been fully recognized by industry peers the market and investors. In July 2022
Shenzhen Securities Information Co. Ltd. a wholly-owned subsidiary of the Shenzhen Stock Exchange
Responsible production so that people can eat safe launched the CNI ESG ratings and Muyuan’s ESG performance was rated as AA which is at the forefront
pork and enjoy a rich life has been the founding as- of the industry (agriculture animal husbandry and fishery products). This is both an encouragement and a
piration and mission of Muyuan ESG. For Muyuan new starting point for us. Muyuan will continue to work hard to provide the public with safe tasty healthy
ESG is a powerful means to combat internal and and green pork food and work with all parties to help the transformation and upgrading of the industry and
external risks. As a pork product company there are promote the high-quality development of the pork industry.multiple risks: the nature of the farming industry
means that we are in direct contact with natural re- Finally I would like to express my heartfelt thanks to all employees for their hard work put in the sustain-
sources and the environment such as land air and able development of the Company and to the government and regulatory agencies consumers sharehold-
water every day; and the fact that we have business ers and investors non-governmental organizations community residents media and other stakeholders for
across the nation means that we must handle the their support of the Company’s ESG work. Also we are grateful to the upstream and downstream partners
relationship with local communities well. These are for their trust in the Company and we hope to continue to work together with you to create a better future.the internal driving forces for us to excel in ESG
and promote the high-quality development of the
Company.Chairman: Qin Yinglin
Climate change and the carbon peaking and carbon neutrality goals have promoted the vigorous develop-
ment of green agriculture and addressing climate change has become a common goal of all countries and
has been put into action. In this context the demand for green pork products will continue to grow. We
have been actively promoting clean production and reducing energy consumption. In 2022 Muyuan re-
duced greenhouse gas emissions through various key emission reduction technologies by 4088800 tonnes
equivalent to the carbon dioxide absorbed by 1.67 million mu (111333 hm2) of forest in a year. Producing
healthy food for the society in a responsible manner improving the quality of life of the public and con-
tributing to the global response to climate change are the external driving forces for our high-quality devel-
opment.
04 05Muyuan Culture Tribute to PigsMuyuan leads and drives its development with its values. Embodied in the “Basic Law of Muyu- A pig lives an ordinary life.an” Muyuan’s corporate culture and value system take “creating value and serving society” as
the core. This system has always been shaping all operation activities of the Company’s business It comes to the world quietly and leaves quietly.units and subsidiaries and affecting how every Muyuan staff thinks acts and feels from the inside Everything it had had already been given when we see it gone.out.A pig lives a great life indeed!
Basic Law of Muyuan The spirit of the pig mirrors that of the Muyuan people.I. Business purpose: Produce healthy foods for society to improve the life quality of the public help-
ing people enjoy an abundant life. A pig lives a dedicated life.II. Core values: Create value and serve society; be upright outside and inside and advance social
development. External value outweighs internal value; long-term interests out- It sacrifices its life for the happiness of human beings.weigh immediate interests; the value of humans outweighs the value of things;
common value outweighs individual value; social value outweighs profit value; Pigs prove to us that is another life that sustains one life; one life is sacrificed whilst another
and customer value outweighs production value. is benefited.III. Business selection: Create substantial value instead of a bubble with our own strengths. Muyuan people shoulder the lofty mission of producing pork foods and creating a high-quali-
IV. Business principles: Maximize social value. Never pass on costs never shirk responsibilities and nev- ty life for the public. Just like pigs we are ready to give everything we have to make people's
er leave hidden dangers. Take beneficial but not harmful or controversial actions. lives better.Persist and never waiver in value creation. Never expect fluky profits or yield to
selfish interests.A pig lives a happy life.Object to commercial bribery and refuse unearned or illegal gains. Never engage
in speculation tricking or dispossession. Never engage in underhand money Despite the sacrifice of its precious life a pig does not care much about how long it lives or
deals. Be strict in self-discipline be brave to shoulder responsibilities and pursue how much it eats but grows only big and strong happily and quickly.perfection.V. Employee benefits: Bring benefits for employees. We regard employees as family members help Pigs prove to us that is the quality rather than the length of life that matters. We should ex-
them grow and build a career platform for helping them achieve self-fulfilment. change the length of life for the quality of life without regrets just like pigs.We are determined to bring happiness to each employee and each family. Every-
one can enjoy a happy life here. A pig lives a philosophic life.VI. Customer benefits: Make cooperation conducive to customers’ interests. Never impose whatever you
dislike on others but showing towards others what you yourself would like. Al- Whilst people are still thinking about the meaning of life and won’t let go of fame and for-
ways feel for others and treat others with honesty and sincerity. We take custom- tune pigs have given a simple and clear answer using their lives: the true meaning of life
ers as brothers and help each other to realize fairness uprightness openness and does not consist in how much you take but in how much you can give to society and your
transparency in business progress and make true simple worry-free efficient and
win-win cooperation. fellow human beings.VII. Social Put knowledge into action to benefit society. Achieve the simultaneous improve- So we cease to merely stand back discussing the meaning of life. We are determined to create
responsibility: ment of economic benefits ecological benefits and social benefits. Promote an value with a mind full of more dedication and less scheming like pigs.environment-friendly and animal-friendly business pattern. Promote circular
economy and cleaner production to reduce negative influence on the atmosphere.Upgrade continuously the standards of food quality and actively build an indus- We are grateful to pigs.trial ecology to promote sustainable development. Keep carrying out public wel-
fare undertakings to support education and promote social and economic devel- We raise pigs but actually it is the pigs that feed us.opment. To respect pigs is to respect ourselves and to praise pigs is to praise ourselves.VIII. Constant Adhere to the values and construct a platform for sharing; keep pace with the
development: times and explore the unknown; face challenges with courage and go beyond Let all of us like pigs be simple and happy to give and to make true a high-quality life!
selves; be selfless and build Muyuan a long-lasting company.
06 07About Muyuan
About Muyuan Business Performance
Company Profile Unit 2022 2021 2020
Market pigs
1000 heads 61201 40263 18115
produced
Founded in 1992 and having developed for 30 years Muyuan Foods Co. Ltd. has formed a pork industry Slaughter 1000 heads 7362 2899 239
chain integrating feed processing pig breeding commercial pig farming slaughter and processing. Muyu-
an attaches great importance to innovative research and development and dedicates IT and intelligent de- Operating
velopment teams to intelligent pig farming. By applying advanced technologies such as IoT big data and 1 million yuan 124826 78890 56277
artificial intelligence we have established a pig industry Internet platform covering feed processing pig revenue
breeding commercial pig farming slaughter and processing to serve the upstream and downstream of the
industry and to promote the upgrading of pork industry. Net profit 1 million yuan 14933 7639 30375
As of the end of 2022 Muyuan operates in 24 provinces (autonomous regions and municipalities) across Total assets 1 million yuan 192948 177266 122627
China with 288 wholly-owned and holding subsidiaries 140000 employees and total assets of 192.9 bil-
lion yuan. In 2022 61.2 million pigs were produced and 7.36 million were slaughtered. Muyuan has always Feed production
been adhering to the good vision of “serving people with safe pork” and is committed to producing safe 1000 tonnes 22600 19350 13650capacity
delicious and healthy high-quality pork so that people can enjoy a richer life.Number of em-
Person 140403 137520 121995
ployees
Who We Are Producer of high-quality pork; Promoter of social progress.Producing safe and healthy pork products for the public; Promoting healthy industry
Our Mission Development of Muyuan’s ESGdevelopment.Our Vision Serving people with safe pork to help them enjoy a richer life; Becoming a respect-able company.
199219931998
Muyuan Value Formula * The first pig farm in Muyu- * The Mashan pig farm in * Muyuan started exploring
an Neixiang Mashan Pig Neixiang went into operation the pig waste dry cleaning
Farm broke ground. on June 22 starting Muyu- technique to cut water use.Creation - Possession = Value an’s pig farming business with 22 piglets.
200020012003
* Low-protein diets were used * Utilization of biogas started * The low-protein diet and net
in grower herds. a new chapter of using green energy evaluation system
energy. were adopted throughout the
farms.* The “Ju’ai Education Assis-tance Project - Spring RainProgram” was launched to
support the education in de-
prived areas.
08 09About Muyuan
2004 2006 2007 Awards and Recognition in 2022
* The Company started explor- * Muyuan pig breeding system * Farms started implementing
ing farming waste water treat- was completely established. clean production systems and
ment solutions and developed * The Company started explor- CDM project came into opera-
the internal circulation (IC) ing emission patterns to meet tion. Items Issuing Institution
anaerobic tanks. standards.
2008 2010 2011 China Enterprise Confederation China Enterprise Directors Asso-Top 500 Chinese Enterprises
ciation* The circular economy pattern * Muyuan was awarded “Na- * Muyuan initiated and estab-of “pig farming - biogas ma- tional Nuclear Breeding Farm lished the Henan Association Co-sponsored by the Ministry of Human Resources and Socialnure - ecological agriculture” of Pigs” and “Standardization for Poverty Alleviation andwas explored. Demonstration Pig Farm”. Development. National Model Enterprise for Security All-China Federation of Trade Unions China Enter-
* Muyuan CDM project passed Harmonious Labor Relations prise Confederation China Enterprise Directors Association and
the UN inspection and became
China’s first registered CDM All-China Federation of Industry and Commerce
project applied in pig farms.
2012 2013 2014 Ministry of Commerce Ministry of Industry and Information
Technology Ministry of Ecology and Environment Ministry of
* Muyuan explored the manure * The 17th farm in Neixiang * Muyuan went public on the National Supply Chain Innova-
mechanical dry cleaning pro- was cer t i f ied by CHINA Shenzhen Stock Exchange Agriculture and Rural Affairs People’s Bank of China State Ad-tion and Application Demonstra-
cess. G.A.P. with the stock code of 002714. ministration for Market Regulation China Banking and Insurance
tion Enterprise
2015 2016 2017 Regulatory Commission China Federation of Logistics and Pur-
* Muyuan’s environmental pro- * The “5+” poverty elimination * Muyuan highly-reproductive chasing etc.tection process was approved pattern was launched in Neix- breeding stocks were cultivat-
by the Ministry of Environ- iang County Henan province. ed with several breeds form-
mental Protection. ing a complete production Top 500 Chinese Agricultural Farmers’ Daily
network. Enterprises
201820192020
* The pig houses heating with-
out fossil fuels were applied * The new pig house with air * The “5+” poverty elimination 2022 Excellent Cases of Social
and promoted throughout the filtration was developed and pattern helped 390 thousand
Company. applied to achieve fresh air people and 140 thousand
Responsibility of Chinese Pri- All China Federation of Industry and Commerce
* The Company explored the filtration independent ventila- households from 15 provinces vate Enterprises
improvement of saline-alkali tion and air deodorization and and 62 counties out of pover-
land and planting of seawater sterilization of outlet. ty. China Listed Companies ESG The 16th Value Selection of Chinese Listed Companies by Securi-
rice.
2021 2022 Top 100 Award ties Times
* Slurry water purification and reuse technology was promoted to * The Company issued the first
save water. Green and Low-Carbon Ac- Excellent ESG Cases of Listed
* The Company donated 100 million yuan for flood relief and tion Report in the industry. China Association of Listed Companies
post-disaster reconstruction in Zhengzhou Zhoukou Xinxiang and * A Sustainability Development Companies
other severely disaster-stricken areas. Committee was established in
the Company.
10 11ESG Management
ESG Management Strategy of ESG Management
ESG Management Structure Muyuan’s social responsibility strategy with the “Five Commitments”
Muyuan actively responds to the UN Sustainable Development Goals by establishing a corporate social
We attach great importance to ESG work. We believe that the Company’s highest decision-making body responsibility strategy with the “Five Commitments” as the essence. Focusing on five areas namely food
needs to make final decisions on the Company’s ESG work policy and strategy. In 2022 Muyuan’s Board
of Directors established a Sustainable Development Committee to be fully responsible for the Company’s safety environmental protection win-win cooperation employee care and public welfare Muyuan has
ESG affairs and strategies to improve the Company’s management towards sustainable development. been contributing to the realization of SDGs by 2030.In order to ensure the smooth implementation of ESG work Muyuan established a three-tier ESG manage-
ment structure of “decision-making organizational and operational levels” led by the Sustainable Develop-
ment Committee of the Board of Directors. As a specialized team of the Board of Directors this committee Five Commitments Sustainable Development Goals
researches and gives suggestions on major decisions. The Sustainable Development Working Group which
is the organizational level is responsible for studying the resolutions made by the Sustainable Develop- Muyuan leads the development in the in-
ment Committee of the Board of Directors formulating relevant implementation plans and organizing the dustry by sticking to scientific and techno-
implementation of the work. Each subsidiary and department serves as the ESG operational team and im- Food logical innovation continuously engages in
plements the Company’s ESG resolutions according to the actual situation of each unit. safety antibiotic-free farming and produces safe
healthy nutritious and delicious food for
ESG Management System the society.Green and Sticking to the “Five Steps of Environmen-Organizational Daily Indicator Information Performance Capacity low-carbon tal Protection” scheme Muyuan promotes
management management management disclosure appraisal building circular economy and carries out cleaner development production so as to protect ecological envi-
ronment.The Sustainable Development Committee conducts research and gives adviceSustainability Devel- on major decisions related to the Company’s sustainable development and Sticking to the principle of “helping eachopment Committee ESG and supervises the implementation and progress of the sustainable devel-Win-win other and upholding justice and fairness”
opment strategies and plans as well as its performance on key issues such as cooperation Muyuan aims to build a sustainable industri-
(Decision-making addressing climate change safeguarding public health and safety and fulfilling al chain with efficiency and win-win bene-
level) social responsibility. The Committee also identifies sustainability risks relat- fits.ed to the Company and assesses the impact on the Company of these relevant
risks and reviews the Company’s annual ESG Report. Employee Muyuan emphasizes benefiting employees
ESG Office The ESG Office is set up under the Sustainability Committee of the Board of care and helping them to develop and realize
(Organizational Directors responsible for undertaking specific matters related to sustainable their life values.development and the overall organization and management of all major ESG
level) issues.Subsidiaries and de- The ESG directors of each subsidiary and each department promotes the imple- Sticking to its values Muyuan aims to build Public
partments mentation of specific ESG matters implements the objectives of ESG issues set a sharing platform to make continuous prog-
by the headquarters implements ESG management-related work and organizes welfare
(Operational level) ress and stay focused for long-term growth.communication with stakeholders.
12 13ESG Management
Muyuan’s ESG Indicators
Muyuan’s Detailed Disclo-
Having experienced the industry cycle trough feed material price fluctuations repeated African Swine Fever 2022 Sectors Concerns Muyuan’s Achievements sure Location
was not an ordinary year. Faced with many challenges Muyuan was aggressive and innovative focusing on the es-
sential business and seeking breakthrough at the front line. We achieved high quality development and efficient oper- Occupational * We invested 192 million yuan in safeguarding safety and health Employee occu-
ations with the total assets of 192.9 billion yuan and net profit of 14.9 billion yuan in 2022. hea l th and safety * We have regular free physical checks for employees
pational health
and safety
Sectors Muyuan’s Concerns Muyuan’s Achievements
Detailed Disclo- E m p l o y e e
sure Location care and re- * Continue to develop the “Employee Happiness Project” and improve employee welfare. Safeguarding em-
spect ployee interests
Operation with
Integrity and * Abide by regulations and law operate business in good faith and in compliance. Compliance Man-
Compliance agement Protection of employees’ * Insist on diversity and inclusiveness and improve employee communication mechanism Unblocking em-
r i g h t s a n d and care system ployee communi-
Corporate Gov- * The corporate governance system and operation mechanism have been optimized. cation channels
ernance and In 2022 the Company held a total of 12 board meetings 11 supervisory board
interests
Transparency meetings and 4 shareholder meetings.Corporate Gover-
* Independent directors account for 43% of the total to ensure the objectivity of the nance
Company’s decision-making. E m p l o y e e * Expenditure on employee training exceeded 500 million yuan with 100% training cover-
Employee train-
training and age rate. ing
Economy Anti-corruption * We are committed to the construction of compliance system and incorruptible development * Smooth the promotion channels and improve the promotion mechanism.Career develop-
policy culture with our integrity and honesty training sessions covering all cooperation
Introducing Talent- ment path
partners. ed People
Protecting * We took various measures to protect the rights and interests of the Company’s Sustainable * Sustainable soy products sourced from Cargill and Yihai Kerry have accounted for Sustainable sup-
the rights and shareholders and distributed a total of 1.488 billion yuan in dividends in 2022 Optimizing Corpo- supply chain 44.86% of the total soy products sourced by the Company.* Improve partner sustainability and help small and medium-sized farmers develop. ply chaininterests of accounting for 21.56% of the net profit attributable to shareholders of listed com- rate Governance
shareholders panies.* Strict partner management mechanism.Promoting Supply chain * ESG training was held in the whole Company with business partners invited. ESG management
local employ- * 85.51% of our employees a total of 120057 persons are hired locally. Company Profile management * All suppliers have signed the Supplier Honesty & Integrity Agreement. system for busi-
ment * Drive industry chain partners to develop together. ness partners
* By the end of 2022 Muyuan had installed a total length of 19.7 million meters of
manure application network for farmers for free. S c i e n t i f i c
* In 2022 Muyuan carried out 9680 agricultural technology training sessions for and techno- * In 2022 we invested 1.142 billion yuan and 6134 professionals in R&D applied for 389 R&D inspiration
Utilization of 11321 villages benefiting 277600 people. Our manure fertilizer was applied in logical inno- patents and obtained 549. and management
manure 5.26 million mu of field saving the use of chemical fertilizer for 58700 tonnes Boosting Commu- vation system
bringing an extra income of 295 yuan/mu for farmers through saved costs or in- nity Development Society
creased gains.
2 * We provide clean water and most appropriate nutrition to make sure pigs are healthy and * Muyuan improved 224400 mu (14960 hm ) of saline-alkali lands and 72000 mu
2 energetic.(4800 hm ) of desert lands.
Animal wel- * We designed and developed pig houses and equipment on our own to provide comfort-
fare able living environment for pigs.Ensuring animal
* A pig farm is a circular economy. Based on the biogas slurry resource of farms * We give more focus on pig disease research to reduce the pain of disease for pigs.welfare
Circular Econ- Muyuan has upgraded the way to combine crop planting and livestock farming by * We develop intelligent devices such as needless injection to arrange the pig flow reason-
omy Develop- developing a circular economy that features mutual benefits between pig farming Crop -L ives tock ably and help pigs grow happily.ment and crop planting. In 2022 Muyuan established a total of 48000 mu (3200 hm2) Cycle
of Circular Economy Demonstration Field. * 14 feed mills were certified for FSSC 22000 and farms including Farm No.8 in Huaxian
and Farm 27 in Neixiang got GLOBALG.A.P. certification. Slaughter facilities in Neix-
Biodiversity Food safety iang and Zhengyang are certified for China HACCP quality management system. Product respon-
and Land Re- * High standards and strict requirements for environmental impact assessment and Biodiversity and and quality * Neixiang Muyuan Meat Complex obtained the China G.A.P. (good agriculture practice) sibility manage-
Environ- source Utiliza- site selection certification and passed the CNCA forensic auditing. ment
ment tion * Improve soil fertility; leave no hidden dangers in terms of foul water leakage.Land Resource Uti-
lization * 61.2 million pigs were sold in 2022 with full testing and verification transparent trace-* Ensure that the farm construction does not cause biodiversity protection risk. ability of the whole industry chain. 7.36 million pigs were slaughtered.Water Resourc- Water Resources * Muyuan has actively promoted the construction of high-standard farmland and order ag-
es Management * Average consumption of clean water for producing per market pig is 1.84 m3. Management Rural revi- riculture creating about 100000 jobs for farmers. Boosting Com-
t a l i z a t i o n * Muyuan has joined hands with upstream and downstream enterprises in the industry munity Develop-
assistance chain to build an industrial ecosystem providing jobs for more than 300000 people. ment
Energy con- * Improve energy saving process enhance technological innovation and implement
servation and photovoltaic power generation projects. Carbon Emissions
* Attracted 40000 college graduates to work in agriculture.consumption * In 2022 25.319 million m3 of biogas was used equivalent to a reduction of and Addres s ing
reduction 51241.4 tonnes of standard coal use. Climate Change Co-construc- * By the end of 2022 99.51 million yuan had been invested to support community infra-structure construction including building bridges and roads in rural areas constructing Boosting Com-tion of com-
munity cultural parks and improving learning environment of schools. These actions have bene-
munity Develop-
Carbon Emis- Carbon Emissions fited a total of 320000 households and 1.21 million people in 1474 villages.ment
sion Reduction * Carbon emission intensity was 1.0 kg CO2e/kg pork. and Addres s ing Climate Change
* Muyuan’s “Ju’ai Education Assistance Program” has benefited 220 counties and 110 cit-
Public wel- ies across 25 provinces/autonomous regions sponsoring 60000 college students 540000 Boosting Com-
Responding to * Identify key risks in the context of climate change and develop action plans for Carbon Emissions fare primary and secondary school students and rewarding 26000 outstanding teachers. munity Develop-
climate change addressing climate risks and Addres s ing * Muyuan has built a public welfare platform to facilitate all sectors of society to partici- mentClimate Change pate in philanthropy and create a public welfare ecology.
14 15ESG Management
Muyuan’s Material Issues
Assessment of Material Topics Economy Society Environment
1 Operation with integ- Occupational health and
rity and compliance 6 14 Animal welfare
Resource utilization of
In order to effectively respond to stakeholders’ demands and concerns about Muyuan and to better fulfill safety 21 manure
our social responsibility Muyuan conducted a research and assessment of material topics along with inter- 2 Corporate governance Employee care and re-7 15 Food safety and quality Circular economy de-
nal and external stakeholders identifying material topics of importance to both Muyuan and stakeholders. and transparency spect 22 velopment
3
The assessment results have been used as an important reference for the preparation of the ESG report. Anti-corruption policy Protection of employees’ 8 16 Customer service Biodiversity and land
Participants of the research include: government and regulators consumers shareholders and investors Protecting the rights rights and interests
23
resource utilization
4
employees NGOs industrial organizations professional organizations value chain partners communities and interests of share- Employee training and Information security and holders 9 17 Water resources man-
media and the public. development privacy protection
24
agement
5 Promoting local em- Rural revitalization as-
ployment 10 Sustainable supply chain 18 Energy conservation Materiality Assessment Process sistance 25 and consumption re-
Supply chain manage- Co-construction of com-
11 19 duction
ment munity
Identify Muyuan ESG topics based Carbon Emission Re-Industrial ecology con- 26
12 20 Public welfare duction
on the Company’s strategies the 17 struction
Identify the We actively reviewed the ESG topics
UN Sustainable Development Goals Scientific and technolog- Responding to climate 27
issues of most to ensure their comprehensive cover- 13 ical innovation change
stakeholders’ concerns and domestic
concern age of the Company’s ESG practices.and international social responsibility Matrix of Material Topics
disclosure standards.High
415
Stakeholders were identified in terms
Determine We conducted stakeholder analysis and
of “impacted by” and “impacting” 6 1
investigation adjusted and optimized the category of
Muyuan and were made the main tar- 11 9
objects investigation objects. 2524 13
gets of the research. 26 8
18
27
We communicated extensively and 710 16 21
deeply with stakeholders through
We sent out research questionnaires to 20 2 22
multiple channels to understand their 17
stakeholders organized interviews and
Conducting expectations and requirements. We 19 3
meetings or communicated by email to
research then made a summary of the concerned 5
understand their concerns and sugges- 23
issues and made proper use of all kinds 12
tions on our ESG topics. 14
of constructive criticisms and sugges-
tions.Mapping the
materiality We analyzed these issues according to We collected the questionnaires and
assessment the investigation and communication plotted the materiality assessment ma-
matrix with stakeholders to identify changes trix using the data analysis results.in the importance of these issues.Low
The Board confirmed that there were
Internal con- The Board reviewed and confirmed the The importance to the Company’s business High
no significant changes in the materiali-
firmation materiality assessment results.ty assessment matrix of the company. Importance of Material Topics
1617
The importance to stakeholdersESG Management
Communication with Stakeholders Stakeholders Main issues Communication channels
We attach great importance to the communication with stakeholders and continuously expand the commu- ? Sustainable supply ? Bidding meeting ? Partner Training
nication channels. We therefore get ways to fully learn about and understand the demands and expecta- ? Supply chain manage- chain ? Fairs ? Procurement and
tions of all parties especially the criticisms and suggestions on our CSR work. Thus we can continuously mentValue chain ? Scientific and tech- ? Regular visits sales platform
improve Muyuan’s sustainable development and bring mutual benefits to Muyuan and its stakeholders. ? Customer servicepartners nological innovation? Daily communication ? Customer call-back
Key stakeholders of the Company include: the government and regulatory authorities consumers share- ? Anti-corruption policy ? Efficient operation ? Honesty & integrity ? Market survey
holders and investors employees NGOs industry organizations professional institutions community me- ? Information security ? Industrial ecology meeting ? Official websites
dia and the public. and privacy protection construction ? Partner site audit ? Social media
Stakeholders Main issues Communication channels ? Promoting local em- ? Community commu-
ployment ? Public welfare nication activities
? Field visits and surveys
? Operation with integrity? Industrial ecology ? Resource utilization of ? Biodiversity and ? Telephone communi-
and compliance construction ? Information disclo- ? Charitable activitiesmanure land cation
Government ? Corporate governance ? Rural revitalization ? On-site investigations sure
Community ? Volunteer services
? Circular economy de- utilization ? Social media
and regulatory and transparency assistance ? Work Seminars ? Supervision and
? Agricultural technology
authorities ? Resource utilization of ? Energy conservation ? Daily communication inspection by regula-
velopment ? Co-construction of ? Promoting
services
manure and consumption and debriefing tory authorities ? Water resources man- community Crop-Livestock Cy-
? Food safety and quality reduction ? Special reports ? Project approval and agement cle
? Promoting local em- ? Carbon Emission supervision
ployment Reduction ? Water resources ? Resource utilization of
management
manure
? roadshow activities ? Energy conservation NGOs/ Indus-? Circular economy de-
Shareholders ? Operation with integrity
? General meeting of
? Efficient operation shareholders ? Information disclo-
and consumption ? Seminars ? Foundations platform
try Organiza- velopment
and investors and compliance ? Scientific and tech- ? Investor surveys sure reduction ? Exchanges and visits ? Email/ telephone ? Corporate governance ? Shenzhen Stock tions/ ? Food safety and qualitynological innovation? Performance explana- ? Responding to cli- ? Fairs communicationand transparency ? Animal welfaretion meetings Exchange interactive mate change ? Industry summits/ fo- ? Association confer-platform Professional ? Carbon Emission Re- ? Sustainable supply rums ences
Institutions duction
Consumers ? Food safety and quality? Carbon Emission ? News reports ? follow-up calls
chain
? Biodiversity and land
? Animal welfare Reduction ? Social media ? Market survey ? Scientific and tech-utilization
nological innovation
? Workers’ congress ? Corporate cultural ? Operation with integrity ? Promoting local
? Occupational health ? Communication be- activities and compliance
and safety ? Employee training tween employees and ? Special classes
employment
? Food safety and quality ? Information disclo-
? Protection of employ- management ? Online communica- ? Water resources ? News reportsEmployees ? Resource utilization of sureees’ rights and interests and development? Efficient operation ? Employee activities tion platform
Media/ the management ? Social media
? Employee care and ? Health lectures ? Work meeting manure ? Charity aidspublic ? Scientific and tech- ? Official websites
respect ? WeChat Official Ac- ? Year-end review and ? Circular economy de- ? Telephone communi-nological innovation? On-site investigations
count posts planning meeting velopment cation? Carbon Emission
? Rural revitalization
Reduction
assistance
18 19Economy and Corporate Governance
Economy and
Corporate Governance
Muyuan building (Zhengzhou China)
20 21Economy and Corporate Governance
Optimizing Corporate Governance Board Diversity
The members of the Company’s Board of Directors six males and one female show diversity in terms of
sex age education profession nationality etc. They have diverse professional backgrounds in technology
Corporate Governance Structure management law and finance and are able to provide professional advice on different aspects of the Com-
pany’s operation and future development.The Company has been improving its corporate governance structure and optimizing its corporate gover-
nance system and operation mechanism in strict accordance with the requirements of relevant laws regula-
tions and normative documents such as the Company Law of the People’s Republic of China the Securi- Nation- Date of First Name Sex Title Profession
ties Law of the People’s Republic of China the Code of Corporate Governance for Listed Companies the ality Appointment
Rules Governing the Listing of Shares on Shenzhen Stock Exchange and the Business Guidelines of Shen- Animal hus-
zhen Stock Exchange for Self-discipline Regulation of Listed Companies etc. Based on systems including Qin Yinglin Male Chinese Chairman and President December 2012
the Articles of Association it established a governance structure that comprises the General Meeting of bandry
Shareholders Board of Directors Board of Supervisors and Executives and continuously refine it. Veterinary
Qian Ying Female Chinese Director December 2012
Under the Board of Directors five special committees are set to provide professional opinions and sugges- medicine
tions for scientific decision-making of the Board of Directors and watch the Company’s risk management.Among the five committees the Sustainable Development Committee was newly set in 2022 for effectively Vice Chairman
implementing the Company’s sustainable development strategies and improving the Company’s ability of Financial Cao Zhinian Male Chinese Executive Vice President December 2012
sustainable development. accounting
and Head of Finance
General meeting of shareholders USA
Ram Charan Male Director August 2018 Management
standard
Board of Supervisors
Management/
Li Hongwei Male Chinese Independent Director August 2018
Board of Directors Accounting
Yan Lei Male Chinese Independent Director July 2021 Law
Feng Genfu Male Chinese Independent Director September 2021 Economics
Strategy Audit Nomination Remuneration and Sustainable Develop-
Committee Committee Committee Appraisal Committee ment Committee Board Diversity
Governance Structure
Female Directors 5 - 10 years
Board Building
The Company continuously improves its governance structure and optimize its governance system and operation
mechanism on the basis of strictly observing requirements made by relevant laws regulations and normative docu- 14%
ments such as the Company Law of the People’s Republic of China the Securities Law of the People’s Republic of
China the Corporate Governance Code for Listed Companies the Rules Governing the Listing of Shares on Shenzhen 43%
Stock Exchange and the Business Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation of Listed 86% 57%
Companies. In the nomination and selection of the Board of Directors and its subsidiary committees we comprehen-
sively considered various factors such as stakeholder (including shareholders) opinions diversity independence and
competence. As of the end of the reporting period the Company’s Board of Directors has seven directors in total Male Directors Less than 5 years
three of whom are independent directors accounting for more than one-third of all directors. The personnel composi-
tion of the Board of Directors is in compliance with the requirements made by relevant laws and regulations and the Sexes of Directors Service term
Articles of Association.
22 23Economy and Corporate Governance
Board Independence
Committee Operations and Indepen-
The Company selects and appoints Independent Directors in strict compliance with the procedures and Responsibilitiesname dence
qualification requirements set in the Articles of Association. It ensures Independent Directors fulfill duties
independently and justly in terms of corporate governance internal control information disclosure and fi- * Watch and evaluate the work performance of the external audit agen- * The Committee con-
nancial supervision without being influenced by major shareholders and actual controllers of the Company cy; tains 2 independent
or any other entities or persons who have interests in the Company. * Watch and evaluate internal audit work performance; directors accounting
Audit Commit- for 67%.As of the end of 2022 the Board of Directors has 3 independent directors accounting for 43% of all di- * Review the make opinions on the Company’s financial reports;
tee * In 2022 the Committee
rectors. It satisfies the relevant requirements of regulatory authorities on the proportion of independent * Watch and evaluate the Company’s internal control; and held 4 meetings with
directors and can ensure the Board of Directors effectively makes independent judgements and scientific * Coordinate communication between the management internal audit a attendance rate of
decisions when researching and reviewing material matters. All directors of the Company perform works department and relevant departments and the external audit agency. 100%.and duties in strict accordance with relevant protocols. During the reporting period the Company held 12
* Make suggestions on the size and structure of the Board of Directors
Board meetings in total. on the basis of the operation conditions asset scale and equity struc-
During the reporting period the System of Independent Directors was revised and improved. Independent ture of the Company. * The Committee con-
Directors conscientiously fulfilled their duties in accordance with the System of Independent Directors. In Nomination * Study the selection criteria and procedures for directors and officers tains 2 independent
addition to the powers given to Directors by the Company Law of the People’s Republic of China and other Committee and make suggestions to the Board of Directors; directors accounting
relevant laws and regulations independent directors also have the following special powers: (1) Making * Search extensively for qualified potential directors and officers; and for 67%.prior recognition of significant connected transactions for which an intermediary institution may be hired * Review and make suggestions on the candidates for directors and
to issue an independent financial advisory report as the judgement basis; (2) Proposing to the Board of Di- officers.rectors to hire or dismiss an accounting firm; (3) Proposing to the Board of Directors to convene an extraor- * Propose remuneration programs or plans based on the main scope
dinary shareholders’ meeting; (4) Proposing to convene a meeting of the Board of Directors; (5) Publicly work responsibilities and importance of the management positions
soliciting voting rights from shareholders before the Shareholders’ Meeting; (6) Collecting opinions from taken by directors and officers as well as the remuneration level of * The Committee con-
small and medium-sized shareholders for proposing a profit distribution plan and directly submitting it to similar positions in other similar enterprises; tains 2 independent
directors accounting
the Board of Directors for review; and (7) Independently hiring external audit or consulting agencies to au- Remuneration * Review the Company’s remuneration and appraisal system; for 67%.dit or consult on specific matters of the Company. and Appraisal * Watch the function performance of directors and officers of the
Committee Company and conduct annual performance assessments on them;
* In 2022 the Committee
Special Committees held 4 meetings with * Watch and inspect the implementation of the Company’s remunera- a attendance rate of
Under the Board of Directors there has set five special committees which are the Strategy Committee Au- tion system; 100%.dit Committee Nomination Committee Remuneration and Appraisal Committee and Sustainable Develop- * Propose drafts of equity incentive plans of the Company and manage
ment Committee to take charge of the discussion and decision-making on significant proposals concerning the plans.corporate governance and ESG-related issues.* Make suggestions on significant decisions related to the Company’s
sustainable development (ESG included) to the Board of Directors;
* Watch the implementation and progress of the Company’s sustain-
Committee Operations and Indepen- able development strategies and plans;
Responsibilities
name dence * Watch the Company’s performance in the process of tackling key is-
* The Committee con-
sues such as climate change public health safety and social respon-
tains 2 independent
* Study and propose medium-term and long-term development strate- sibility and make suggestions to the Board of Directors; directors accounting
gies for the Company; Sustainable * Pay attention to important information on sustainable development for 67%.* Review and make suggestions on major investment and financing * The Committee con- Development matters related to the Company’s business study these matters and * In 2022 the Committee
plans that shall be approved by the Board of Directors as stipulated tains 2 independent Committee provide suggestions to the Board of Directors; held 2 meetings with
in the Articles of Association; directors accounting
Strategy Com- for 67%. * Identify sustainable development risks related to the Company eval- a attendance rate of
* Study and make suggestions on major capital operation and asset uate influences of these risks on the Company and provide sugges-
mittee 100%.management projects that shall be approved by the Board of Direc- * In 2022 the Committee tions on these risks to the Board of Directors; and
tors as stipulated in the Articles of Association; held 1 meetings with
a attendance rate of * Review the Company’s annual ESG Reports sustainable develop-
* Study and make suggestions on other significant matters that affect 100%. ment policy documents and other information disclosure documents
the Company’s development; and that are related to sustainable development and provide suggestions
* Inspect the implementation of the above matters. to the Board of Directors.
24 25Economy and Corporate Governance
Protecting the rights and interests of shareholders Information disclosure
The Company standardizes the procedures of the shareholders’ meetings for summoning convening dis- The Company communicates with investors through the interactive platform for investor rela-
cussing and voting in strict accordance with relevant provisions and requirements treats all shareholders tions (http://ir.p5w.net). Click the link or scan the OR code for interactions and more information.equally and facilitates shareholders’ participation in shareholders’ meetings. In 2022 the Company held 4
shareholders’ meetings and distributes dividends of 1.488 billion yuan.In 2022 as reviewed by the Audit Committee of the Board of Shareholders and approved by the Board of
Directors and the shareholders’ meeting the Company appointed Zhongxinghua Certified Public Accoun-
tants LLP as the audit agency for the 2022 annual audit to safeguard shareholders’ equity and ensure the https://ir.p5w.net/c/002714.shtml
financial data is fair and correct.The Company held the 2021 Annual Performance Briefing Meeting on p5w.net.The Second Extraordinary Shareholders’ Meeting in 2022
Strengthen communication with investors
The Company may conduct daily communications with investors through announcements shareholders’
meetings the Company website the interactive platform for investor relations (http://ir.p5w.net) the inves-
tor hotline etc in accordance with the Management System for Investor Relations. In 2022 the Company
held events such as the Annual Performance Briefing Meeting and Online Collective Reception Day for
Investors effectively responding to investors’ concerns. It also actively responds to market concerns by
promptly disclosing the news of communications and investigations with investors on its official website.The investor investigation activities held by it involved more than 2000 participants which realized ade-
quate communication with investors.In the progress of the Board of Directors discussing and making decisions on the profit distribution plan
and before the shareholder’s meeting reviewing the specific cash dividend plan the Company communicat-
ed with independent directors and investors through phone calls faxes letters e-mails official website the
interactive platform for investor relations (http://ir.p5w.net) etc. Concerns from investors were responded
timely.The 2022 Online Collective Reception Day for Investors of listed companies in Henan Province.
26 27Economy and Corporate Governance
Operation with Integrity and Compliance
Compliance Management System
Build three lines of defense to manage risks
Muyuan attaches great importance to the construction of systems for risk management and internal control.Business operation units form the “first line of defense” of Muyuan’s risk
It has made policies and procedures for risk management and built the three lines of defense to manage
1st line of management system. Compliance management personnel take charge of the
risks which involves departments of business operation compliance management and compliance audit defense identification evaluation and defusing of compliance risks in their own de-
to see responsibilities are fulfilled by business units while business and production are focused on and im- partments and take the training organizes by the leading department of com-
pliance management.proved.Comprehensive compliance
Management Systematization System Formalization Form-procedure
Integration Procedure Informatization and Information Digitization
Key segments: Feed - Pig farming - Environmental Protection - Quality Control - Meat processing The Legal Department plays the role of a coordinator in compliance-related
affairs and forms the “second line of defense” of Muyuan’s risk management
Key areas: Marketing - Safety & Environmental protection - Labor - Finance & Taxation - IPR system. It is mainly responsible for constructing the compliance management
2nd line of system and seeing daily compliance works completed by the designated de-
defense partments through system internalization coordination organizing and pro-
1st line of defense 2nd line of defense 3rd line of defense motion and supervision. It also enhances the construction of the compliance
Business operation Compliance management Internal audit system makes reviews and evaluations of compliance and ensures the effec-
tive operation of the compliance system.Compliance culture Procedures standards Operation mechanism of Informatization
and systems compliance management construction
* Integrate culture into * Code of Business Conduct * Compliance risk identifica- * Embedded processes
systems; * Employee Code of Conduct tion and early warning mecha- * Process management
* Know laws - Understand * Risk map nism; * Connectivity
laws - Observe laws - Use * Risk report * Compliance risk response * Data sharing
laws * Compliance management mechanism; * Dynamic monitoring
* Compliance review mecha-
measures for business partners * Risk early warning The Audit Department forms the “third line of defense”. It continuously
* Compliance guidelines for nism;
* Evaluation and accountabil- * Intelligent deci-
special businesses strengthens the function performance of supervising and inspecting the inter-
* Lists of posts’ powers and ity mechanisms for compliance
sion-making
nal control system and management personnel by constructing an authorita-
management
responsibilities
* Evaluation mechanism for tive and efficient audit supervision system with full coverage to improve the 3rd line of
compliance management system. internal control system standardize the mechanism of exercising powers and
defense improve risk prevention. It also attaches great importance to the construction
Organizational plans of a clean and honest culture and promotes the implementation of such a cul-
Administra- Conventions related
Muyuan values Internal Domestic Regulatory
and responsibility
tive rules and to business operations ture through case warnings training exams etc on it creating a clean and
Basic Law of commitments of systems and laws and regulations & Laws governing the
policies related
industry associations honest atmosphere in Muyuan and purifying the business environment.Muyuan procedures regulations and local location of overseas
to the business
regulations businesses environment
in which the Compa-
ny participated
2829
Strengthen internal control prevent risks and improve compliance Compliance
Establish systems and make them internalized FoundationsEconomy and Corporate Governance
Compliance System Construction Integrity and Anti-Corruption
Muyuan builds and continuously improves the compliance management system and carries out relevant
Integrity management
works from three aspects: a) compliance culture b) procedures standards and systems and c) informatiza-
tion construction. Muyuan abides by relevant laws and regulations such as the Law against Unfair Competition of the Peo-
ple’s Republic of China the Company Law of the People’s Republic of China the Tort Law of the People’s
Republic of China and the Interim Provisions on Banning Commercial Bribery and opposes all forms of
The Company takes the construction of compliance culture as a key work. It corruption and unfair competition.sets behavior boundaries of risk management and ensures the compliance cul- The Company attaches great importance to the construction of a management system of integrity and hon-
ture is not only required by the posts but also grows inside the mind and hearts
Compliance cul- esty and carries out relevant work from three dimensions: publicity and implementation of integrity culture of employees. It establishes a misconduct reporting system with total involve- punishment methods and institutional construction. It has developed systems such as the Integrity and
ture construction ment conducts monthly warning and education activities with the theme of Self-discipline Management System Report and Reward System Report Acceptance Management System
being honest and upright in behaviors and regularly holds training sessions on Joint Handling Mechanism of Muyuan for Integrity and Honesty Events and Punishment Regulations on
general knowledge facts for management personnel to cultivate a compliance Behaviors against Integrity and Honesty providing a solid institutional guarantee for the Company’s in-
culture and enhance compliance management awareness. tegrity and honesty construction. It also pays special attention to the management of business links that are
prone to corruption and designates the Audit Department to oversight and reviews regularly.The Company continuously optimizes the procedures standards and systems
of business compliance management and has made the procedure control lists Foster Muyuan values in employees’ hearts and strengthen their vigilance to combat corruption
for key businesses.Procedures By promoting its core values and fine conduct and carrying out targeted cultural education legal In 2022 the Company specified the key areas personnel and standards of education and warning education the Company strengthens employees’ ideals and convictions in-
Standards compliance management; prepared and popularized risk maps and notification ternalizes compliance with regulations and laws into employees’ consciousness and builds a line in
Systems cards for safe production procedures for assessing and certificating activities employees’ minds for combating corruption.in limited space and SOPs for using disinfectants and; refined the Code of
Business Conduct Employee Code of Conduct risk maps risk control reports In 2022 the Company actively carried out various activities that involve all staff and the upstream
compliance management measures for business partners compliance guidelines and downstream partners including thematic training visits to the warning education base and pro-
for special businesses and lists of posts’ powers and responsibilities. motion of the anti-corruption month to enhance their awareness of integrity and honesty.The Company integrates the standards into procedures by applying information
Informatization and digitalization technologies. Technologies of big data and cloud computing
were used to monitor the legal and compliance statutes of business manage-
construction ment behaviors online in real-time and analyze risks thus improving efficiency
through timely warning and intelligent decision-making.Compliance Information Disclosure
The Company strictly follows the requirements of relevant laws and regulations as well as the Articles of
Association Information Disclosure Management Investor Relations Management and other bylaws to ef-
fectively fulfil its information disclosure obligations and disclose the Company’s management and matters
with material impact in a true accurate complete and timely manner. The Company discloses its informa-
tion through the media including the Securities Times China Securities Journal Shanghai Securities News Muyuan employees in an activity for warning and education on integrity and honesty
and Securities Daily and the designated website CNINFO (www.cninfo.com.cn) ensuring that all share-
holders of the Company could access the information timely.
30 31Economy and Corporate Governance
Punish corruption with zero tolerance and strengthen deterrence against corruption
* Receive the complaint → Initial communication and analysis → Investigate and
The Company pays special attention to key business points and links that are prone to corruption. It has collect evidences → Form a conclusion → Qualitative punishment (for a true mis-
made checklists for key posts and businesses and conducts inspections with full coverage and multiple Complaint conduct) → Circulate a notice of criticism.forms to identify obvious manifestations key areas and risky links of corruption. As so does targeted process * The Company has opened an online complaint channel and assigned personnel to
responses could be carried out to regulate and overhaul corruption problems of any scale immediately. check and receive daily complaints and communicate timely with the complainant.It will take measures to ensure the complaint matters are promptly investigated and
handled.Learn from cases to build strong institutions and prevent corruption
The Company learns from corruption cases and find out the weakness of its institutions systems and
mechanisms. By deeply studying cases with common features and worrisome signs it not only regu- * The Audit Department keeps the personal information of whistleblowers and the
lates and overhauls particular problems but also urges departments involved to apply lessons learned information provided strictly confidential.from experience to improve and reform institutions and mechanisms for solid corrective results and a
strengthened cage of institutions that prevents corruption. * It is strictly prohibited to retaliate against the whistleblower in any form and if the
Whistleblow- whistleblower suffers retaliation in any form or to any degree please report to the
er Protection Audit Department immediately.New anti-corruption tools based on technology Mechanism * Auditors receiving reports must recuse themselves if they are close relatives or
The Audit Department actively utilizes the big data platform to find out clues and carry out disciplinary have an interest in the person being reported.supervision. It also explores continuously the construction of a digital internal audit system which imple- * Publicity reports and rewards for whistleblowers do not disclose their names andments automated and continuous audit monitoring of data through the approach features “audit analysis work units except with their consent.model + automatic indicator warning + fraud scenario reproduction” that is based on big data cloud com-
puting and AI technologies. It puts forth efforts to identify problems with worrisome signs and makes tar-
geted responses to combat corruption. A new pattern of anti-corruption has been initially formed.A misconduct reporting mechanism with total involvement and ample rewards for whistleblowers
In 2022 the Company continued to improve the construction of the integrity and honesty system. A mis- Scientific and Technological Innovation
conduct reporting mechanism with total involvement was implemented and complaints can be submitted
through various reporting channels such as phone calls e-mails WeChat official account officer website
letters and visits. Especially a reporting DingTalk Group covering all employees was created to realize re- R&D inspiration and management system
al-time and direct reporting. A reward scheme was also established to encourage both internal and external
personnel to watch integrity and honesty behaviors company management and major operational issues.Muyuan encourages technological innovation creates a favorable innovative environment for R&D person-
nel and continuously recruits research talents. It improves the innovation incentive system and builds the
intelligent learning platform. It also carries out school-enterprise cooperation and jointly builds institutes
for the industry to create a new benchmark for the cooperation among enterprises universities and research
institutes thus effectively promoting scientific and technological innovation. In 2022 R&D investment was
1.142 billion yuan accounting for 0.92% of its operating revenue.
Hotline for public report Hotline for public report WeChat Official Account
17837751511 sjb@muyuanfoods.com Search for “ 廉洁牧原 ” (Integrity Muyuan) As of March 2023 Muyuan has undertaken 3 national key special projects and won 3 Provincial Scientific
on WeChat for on-line complaints. and Technological Progress Awards.
32 33Economy and Corporate Governance
Recruitment of elite talents Promoting Cooperation among Enterprises
Universities and Research Institutes
Industrial upgrading needs the support of cross-border talents. Muyuan currently employs 6134 Muyuan actively carries out school-enterprise cooperation
R&D personnel including elite talents from top universities and research institutions at home and with Westlake University Henan Agricultural University
abroad for example Tsinghua University Peking University Chinese University of Hong Kong and others. Industrial research institutes have been estab-
George Washington University and Carnegie Mellon University etc. Their R&D covers multiple lished to conduct cooperation in prospective studies of
professional fields such as information technology artificial intelligence and synthetic biology etc. synthetic biology intelligent pig farming environmental
protection diseases prevention and control and nutrition
Innovation incentive system R&D etc. In May 2022 the Westlake University - Muyuan
Muyuan shares the fruits of development with its employees under the incentive principles that: Group Joint Research Institute held the Annual Strategy
rewards will go to anyone who creates value; whoever creates value first will be rewarded first; Seminar which focused on major industrial issues and
and those who create more value will get more rewards. We will continue to optimize the incentive conducted thorough discussions on research projects such
mechanism and reward handsomely those who make achievements. The reward standards are consis- as intelligent technology environmental protection disease
tent regardless of internal and external personnel professional and non-professional personnel and prevention and control and nutrition with the aim of creat- 2022 Annual Strategy Seminar of Westlake University
the difficulty of the project. Through sufficient rewards we are able to encourage the talent’s enthusi- ing a new benchmark for the cooperation among enterpris- - Muyuan Group Joint Research Institute
asm and potential for innovation. es universities and research institutes and assisting in the
transformation and upgrading of the industry.To encourage innovative research and development Muyuan has designated June 22nd as the annual
Pig Festival set up 10 billion prizes for innovative project to reward innovative leaders and teams
who make outstanding achievements. The purpose is to stimulate more breakthroughs and more Collaborative Research and Development
leaders to proceed from the original point promote the combination of innovation and production
practice materialize R&D results and boost industry progress. [Case Study] Collaboration between Muyuan and Westlake University to develop an in vivo in-
tramuscular fat measurement algorithm
Muyuan collaborated with West-
lake University to develop an in
vivo intramuscular fat measurement
algorithm. As of the end of the re-
porting period this technology has
been preliminarily applied to the
measurement of intramuscular fat
in pig herds. The research team will
continue to collect B-ultrasound
images of pig herds with high in-
tramuscular fat conduct algorithm
iteration and further improve the
accuracy of algorithm measure-
ment. The scene of in vivo intramuscular fat measurement
The scene of the 2022 Pig Festival conference
Intellectual Property Right Protection and Patent Progress
Building the intelligent learning platform
Muyuan protects its intellectual property right and applies for patents under the Patent Law of the People’s
The Company has built and continuously improved an intelligent learning platform providing em- Republic of China and relevant laws and regulations on intellectual property rights. As of March 2023
ployees with professional skills experience replication and other learning and development courses Muyuan has applied for a total of 1982 patents 405 software copyrights 30 art copyrights and 281 trade-
and accurately posting content according to job requirements to better adapt to employees’ develop- marks.ment needs.
34 35Environment
Environment
Aerial photography in Wuming Muyuan Farm of Guangxi Province
3636 37Environment
Continuous Improvement in Environmental Management Boosting Empowerment and Enhancing Capacity for Environmental Management
In order to enhance employees’ environmental management capabilities Muyuan actively carried out empowerment
training heightened employees’ environmental awareness and promoted environmental protection technologies. In
Improving Environmental Protection Management Mechanism 2022 a total of 899 environmental protection training sessions were conducted with a total of 1294 hours of training
duration and over 90000 participants.Muyuan attaches great importance to environmental management and has established a Sustainable Development Training frequency (Time) Training duration (Hour) Coverage (Person)
Committee under the Board of Directors to supervise and manage green and low-carbon work. The Environmental
Logistics Department has been established to be responsible for the environmental management. It consists of pro- Environmental protec-
vincial-level Environmental Logistics Department Ecological and Environmental Technology Division and Envi- tion technical ability 401 589 73968training
ronmental Monitoring Center. In addition Muyuan’s Environmental Monitoring Center including six environmental
supervision centers is responsible for the supervision and management of the Company’s environmental protection Environmental aware-
and the continuous implementation and improvement of the Company’s internal third-party environmental monitoring ness promotion and 498 755 28833training
system and regularly reports to the Board of Directors.Total 899 1294 92801
Organizational Chart of the Company’s Environmental Logistics Department
Environmental Logistics Department Continuously Innovating Environmental Protection Technology
Major breakthroughs in environmental protection technology in 2022
Regional Environmental Logistics Ecological and Environmental
Department Technology Division Environmental Monitoring Center
Anhydrous waste gas purification
process Resource utilization of manure
Control of biogas slurry
risk factor
In order to solve the problem of Muyuan vigorously develops the circular eco- Muyuan accurately iden-waste gas of pig house being un- nomic model which integrates “pig farming - tifies 4 risk factors forable to be treated by wet process biogas fertilizer - green agriculture”. Currently manure and biogas slurry
under low temperature condition there are 270 agronomists in Muyuan who go utilization clarifies the... the Company innovatively devel- to the farmland to test the soil and recommend criteria for promoting the
oped an anhydrous waste gas puri- the fertilizer and have applied manure to a total application of 3 such risk
fication process. Under anhydrous of 37 kinds of crops such as wheat corn sweet factors in different regions
conditions the outlet waste gas is potato and lotus root. With comprehensive and specifies a full-season
purified with a sterilization rate of utilization of manure and scientific planting crop fertilization program.
99.9% and an ammonia removal services provided by agronomists Muyuan has
rate of over 99% breaking the helped farmers build high-quality demonstration
gardens for apples citrus and grapes which
As of the end of 2022 Muyuan had implemented a total of 29 management systems constraints of temperature on the increased their production and income and ef-
of environmental protection work. Among them during the reporting period the odor treatment process. fectively promoted the development of featured
Company added 21 new environmental protection management systems standards industries around the world.and related work specifications including Safety Risk Grading and Control Mea-
sures for Environmental Protection Zones Water Quality Monitoring and Manage-
ment System for Farms and Winter Operation Standards for Multi-story Building Crop-Livestock Cycle
Deodorization Systems. We have also optimized and upgraded six environmental
protection systems including the Biosafety Management System for Environmen-
tal Protection Zones Harmless Biosafety Management System and Implemen- Muyuan actively explores opportunities in agricultural development organically integrates efficient pig farming withtation Specification for Odor Assessment in the Peripheral Areas of the Farm in agricultural development. It develops the circular economic model which integrates “pig farming - biogas fertilizer -order to continuously improve the Company’s environmental management. green agriculture” based on the principle of “production with reduced wastes harmless treatment resource utilizationMuyuan actively carries out environmental management system certification and and ecological recycling”. It promotes the technical model of biogas slurry and manure storage and field application
continuously improves the Company’s environmental protection workflow and according to local conditions and creates a ecological recycling that features mutual benefits between pig farming and
standards by keeping in alignment with external certification standards. In 2010 it crop planting. At the same time Muyuan actively promotes clean production vigorously develops distributed photo-
passed the ISO 14001 environmental management system certification for the first 2022 ISO14001 Environment voltaic power generation on pig house roof improves anaerobic efficiency and biogas utilization and replaces fossil
time and since then an audit is conducted every three years to dynamically im- Management System Certificate of energy with biomass natural gas. With ecological recycling as the core concept Muyuan creates a unique environmen-
prove the internal environmental management level. Muyuan Foods Co. Ltd. tal protection model.
3839
Southwest Supervision
Center
South China Supervision
Center
East China Supervision
Center
Northwest Supervision
Center
North China Supervision
Center
Northeast Supervision
Center
Testing Center
New Energy Utilization
Circular Economy Center
Harmless Treatment and Re-
source Utilization
Waste Gas Treatment
Resource utilization of manure
Resource Utilization of Biogas
Slurry
Shandong Environmental Logis-
tics Department
Shanxi Environmental Logis-
tics Department
Anhui Environmental Logistics
Department
Jilin Environmental Logistics
Department
Nanyang Environmental Logis-
tics DepartmentEnvironment
In order to protect local pig breeds Muyuan collaborated with Ziyue Nanyang Black Pig Breed Conservation Farm
in Shigang Town Neixiang County to establish Neixiang Shunfa Nanyang Black Pig Protection Technology Co. Ltd.in December 2012 and established Chenggang Nanyang Black Pig Breed Conservation Farm increasing support for
black pig breed conservation work technology and scientific research. In 2022 there were 2639 black pigs in stock
contributing to the protection of local fine breed resources and the multiplication of Nanyang Black Pigs.We always comply with relevant laws and regulations strictly conduct environmental assessments before project con-
struction and conduct a complete ecological impact assessment on aspects such as local vegetation wildlife and soil
erosion during construction. We actively identify sensitive targets in ecological environmental protection and avoid
areas prohibited by the ecological red line for development; after the project is completed and put into operation we
regularly conduct relevant groundwater and soil pollution assessments and monitoring for projects that may have
negative ecological impacts to ensure that our production and operation do not have negative impacts on the local
ecology. We are committed to managing the entire lifecycle of project construction taking corresponding measures to
protect biodiversity and ecological environment and ensuring the maximum reduction or elimination of negative im-
pacts. In 2022 there were no incidents of biodiversity damage during the construction of our projects.Monitoring
Annual results
objects
In 2022 pig manure from Muyuan has been applied to 5.26 million mu (≈ 350667 hm2) of farmland bringing an ex- This year we continued to monitor the soil test the soil and recommend the fertilizer and do
tra income of 295 yuan/mu for farmers through saved costs or increased gains. Soil other work in 201 subsidiaries and 34500 samples were tested.This year we carried out groundwater monitoring drinking water safety testing for pig farms
Biodiversity and Land Resource Utilization Groundwater and so on in 217 subsidiaries and 44148 samples were tested.This year surface water monitoring work was carried out covering 25 subsidiaries with de-
Muyuan actively carries out biodiversity management to protect the ecological environment and biodiversity of the tection indicators including pH ammonia nitrogen permanganate index total phosphorus Surface water
production and operation areas. five-day biochemical oxygen demand (BOD5) chemical oxygen demand (COD) total nitro-
gen suspended solids (SS) dissolved oxygen (DO) etc. 709 samples were tested.The Nanyang Black Pig dubbed as the “Shigang Bamei Pig” is a fine breed with local characteristics in Henan
Province. In March 2009 Nanyang Black Pig was included in the Henan Province Livestock and Poultry Resources
Protection List selected as a “Geographical Indication of China” in 2015 and included in the National Livestock and
Poultry Genetic Resources Catalogue in June 2020.We promise not to carry out production
and operation activities in the world
heritage sites and no-development zones
within the ecological red line and re-
spect all internationally recognized legal
reserves including Class Ia Ib II III
IV V and VI reserves specified by the
International Union for Conservation of
Nature (IUCN).No. 20 Farm of Dengzhou Muyuan in Henan Province
40 41Environment
Improving Saline-Alkali Soil Desertification Prevention and Control
Muyuan actively promoted ecological restoration projects utilizing biogas slurry to improve 224400 mu (14960 Naiman Banner of Tongliao City in Inner Mongolia is one of the banners with serious desertification in Horqin Sandy
hm2) of saline-alkali land in 2022. Land which accounts for 62% of the total area of the Banner. Naiman Muyuan relies on the utilization of manure re-
sources to carry out desertification prevention and effectively restore the local ecological environment. As of the end
of 2022 the total area of desertification control is 72000 mu (4800 hm2).[Case Study] Improving Saline-alkali Land in Da’an Muyuan to Promote Efficient Utilization
of Land Resources
The western region of Jilin Province is one of the three concentrated distribution areas of soda saline-alkali
land in the world. The saline-alkali land here is high in salt content and alkalinity making it difficult for crops
to grow normally. After coming to Da’an City of Jilin Province Muyuan Company went to the farmland to
test the soil. Combining the technical mode of biogas slurry and manure storage and field application Muyuan
started the ecological cycle of “pig manure applied to croplands” and used biogas slurry to improve the con-
tent of nitrogen phosphorus potassium and other trace elements and soil organic matter in the saline-alkali
soil. At the same time Muyuan in collaboration with the Jilin Academy of Agricultural Sciences has selected
saline-alkali tolerant rice as the main crop for planting and improving saline-alkali land. After three years ofefforts Da’an Muyuan has formed a saline-alkali land improvement model of “biogas slurry+organic fertiliz-er+rice planting”. And it has developed the Jilin Da’an Saline-alkali Land Improvement Industrial Park with a
total of 1100 mu (≈ 73 hm2) of improved demonstration farmland achieving a yield of 800 kilograms per mu
and a reduction of 20kg of chemical fertilizer per mu. Surrounding farmers guided by Muyuan have improved
over 4000 mu (≈ 267 hm2) of saline-alkali land. Muyuan has set an example for the improvement of saline-al-
kali land in the western region of Jilin Province achieving the goal of increasing food crop production based
on farmland management and the application of technology.The scene after desertification prevention and control measures carried out by Muyuan in Naiman Tongliao (June 2016)
Aerial photography of Da’an saline-alkali land
The scene after desertification prevention and control measures carried out by Muyuan in Naiman Tongliao (June 2022)
42 43Environment
Comprehensive Control of Ecological Impacts Waste Gas Treatment
Muyuan has achieved fresh air filtration precise ventilation and reduced air consumption through the com-
prehensive promotion and application of new air filtration pig houses. Meanwhile in 2015 Muyuan Com-
In production and operation activities the four major aspects that may have an impact on the ecological environment pany developed a pig house deodorization system; in 2016 the deodorization process was upgraded and
are: wastewater waste treatment of sick and dead pigs and management of odor. We actively identify the influencing innovated to enhance the effectiveness of deodorization and sterilization reduce greenhouse gas emissions
factors in each aspect and take corresponding measures. generated by exhaust gas escape and achieve odorless treatment without disturbing the public.Wastewater management Water Resources Management
The wastewater generated in the production process mainly includes pig manure and urine wastewater after disinfec-
tion domestic wastewater etc. Muyuan has formulated and strictly implemented such systems as the Measures for the
Management of Sewage Discharge from the Farm Unit and the Environmental Protection Operation Management Sys-
tem to strictly prevent the overflow or leakage of fecal sludge. Improving Environmental Protection Management Mechanism
Pig manure and urine are strictly utilized or reused in accordance with the standard procedure and factors such as
weather conditions local land absorption capacity farmland fertilization and irrigation patterns are taken into consid- Muyuan continuously improved its water-saving effect by means of process improvement and water management
eration to apply fertilizer regularly and quantitatively in a reasonable manner to prevent excessive fertilization from optimization. We monitored the water consumption at different breeding stages and formulated the Standard Water
affecting the groundwater environment. Use Management System which requires saving and controlling water consumption from the source setting specific
Domestic wastewater and wastewater after disinfection are centrally recycled to the nearest collection tanks for com- water use standards in different regions and seasons and disclosing and assessing the water use every two weeks. By
prehensive utilization after centralized treatment and it is strictly forbidden to flow into rainwater drains or off-site the end of 2022 the Company had implemented water resources management systems of 5 major categories and 19
ditches. sub-categories in total. We also installed accurate metering equipment to monitor the water consumption inside and
Muyuan has built wastewater treatment processes into slaughterhouses. The wastewater from white offal rooms and outside pig farming units to prevent water waste.waiting pens will be processed by use of anaerobic/aerobic treatment and denitrification technology to discharge SS
COD BOD total nitrogen and other materials once the relevant post-treatment standards are met. Water Saving
The water used in production and operation mainly comes from groundwater and purified wastewater. By using tech-
nologies to treat wastewater generated from washing decontaminating and deodorizing 3.0723 million m3 of waste-
Medical wastes management water was reused in 2022.Muyuan set positive water management goals.In accordance with the Regulations on the Administration of Medical Wastes the company formulated the
Medical Wastes Management Rule to centrally collect and store medical wastes and regularly deliver them Freshwater consumption goals (pig farming)
to a qualified third-party organization for harmless treatment.Short-term goal: 1.73m3 / head by 2026
Harmless treatment of sick and dead pigs
Medium-term goal: 1.6m3 / head by 2030Adopting the model of “farm collection - closed transportation - whole process monitoring - entry and exitdisinfection - mechanical crushing - high-temperature rendering - drying and pressing - oil residue separa- Long-term goal: 1.4 m3 / head by 2035tion” the entire chain is treated harmlessly ensuring zero loss of dead pigs zero transmission from disease
sources zero environmental pollution and zero blind area in supervision and preventing the spread of dis-
eases.
44 45Environment
Goals for 2022 Achievements in 2022 Comparison Emissions Management
Amount of fecal water reuse 2.4 million m3 3.07 million m3 27.9%
Muyuan actively carries out emission management. It reduces the generation of emissions from sources and strictly
controls the waste gas waste water and solid waste generated in the operation process to ensure all emission compli-
Decontamination water and
deodorization water reuse 35000 m3 39000 m3 12.6%
ance.Recycle rate of fecal water 16.9% 21.6% / The Company has specially set up a complete organizational structure for waste gas purification
in provincial regions subsidiaries and farms to conduct the management of air pollutant emis-
Recycle rate of wastewater sions. We take the key factors of atmospheric pollutants such as ammonia hydrogen sulfide and
used for decontaminating 100% 100% / Air pollut- odor unit (OU) as the assessment indicators and implement the atmospheric emission manage-
and deodorizing
ants ment standards.In 2022 the Company actively upgraded processes and supporting facilities in farms and suc-
Water consumption intensity in 2022 by segments cessfully achieved the goal of reducing ammonia emissions by 10% compared with 2021.Feed processing 0.075 m3/ton After being treated the fecal water generated from production is recycled and returned Fecal to farmland or reused in pig farms; and after being fermented the solid feces is made
sludge
Pig farming 1.84 m3/head into organic fertilizer or farmyard manure for sale.Slaughter and meat production 0.57 m3/head
The Company has formulated and strictly implemented the Harmless Biosafety System and
Dead Dead Pig Disposal Management System. The supporting facilities and equipment for harmless
pigs treatment are 100% equipped so as to achieve zero dead pigs going astray zero transmission of
pathogens zero environmental pollution and zero blind areas of supervision.Wastewater Treatment and Compliant Discharge Carbon Emissions and Addressing Climate Change
We attach great importance to the treatment of fecal water generated from pig farming and actively reduce COD emis-
sions. Before the treatment the average COD concentration of raw fecal water is 25000 mg/L; after the treatment the
COD value is greatly reduced. We mainly use three kinds of processes to treat the fecal water and the average COD Energy Consumption Management
concentration of the effluent from different processes is about 6500mg/L for resource utilization about 600mg/L for
decolorization and deodorization and about 200mg/L for reuse with the removal rates of about 74.0% 97.6% and We actively carried out energy-saving and consumption-reducing management and promote efficient utilization of re-
99.2% respectively. The liquid processed by resource utilization and decolorization & deodorization treatment is ap- sources. In 2022 our total energy consumption was 1.0104 million tonnes of standard coalNote 1 and the energy inten-
plied to farmland as liquid fertilizer and the water processed by purification is reused in pig farms to replace the clean sity was 0.2269 kg standard coal/kg pork. During the reporting period we used biogas generated from wastewater to
water for spraying cleaning pig pens and deodorization. All the treated water is reused so there is no input of COD replace natural gas and generate electricity. We continued to use the independently developed technology of pig house
into surface water or groundwater. heating without fossil fuels and recycle the exhaust heat of pig buildings. We promoted distributed photovoltaic (PV)
power generation projects and increased the utilization of solar energy. We took various measures simultaneously to
reduce the consumption intensity of traditional fossil energy and build a new pattern of sustainable development of
green agriculture.Note 1:Standard coal also known as coal equivalent is the reference unit for the energetic calculation of various energy carriers. Internationally for
the convenience of use and unified standards when comparing the quantity and quality of energy coal oil natural gas and so on are converted into
standard coal according to a certain proportion. In this report only standard coal is used as the unit for energy consumption calculation.
46 47Environment
Index Unit 2022 2021 2020 Construction of photovoltaic power generation facilities in Leizhou Muyuan reduces carbon
emissions by about 2997 tonnes annually.Diesel oil Liter 81893303.65 70072490.09 —
Gasoline Liter 12061076.15 18417548.36 12442810.76 In 2023 the photovoltaic power generation project
Gas m3 218839075.60 129469790.60 63557681.01 of Leizhou Muyuan’s No.30 Farm was officially put
into operation. The project is located in Leizhou No.Electricity MW·h 5142753.02 4328154.29 1727664.52 30 Farm Leizhou City Zhanjiang City Guangdong
Total energy Province with an installed capacity of 5.34 MW. It
consump- Tons of standard coal 1010437.76 793881.24 302323.91 adopts a self-produced and self-used working mode
tion with a grid-connected system that puts extra power
to the grid through low voltage. During the reporting
Energy Kg of standard coal/Kg
intensity pork 0.2269 0.2114 0.1675 period the project’s estimated annual power gener-
ation was 5.34 million kWh which reduced carbon
dioxide emissions by 2997 tonnes.Energy consumption intensity of each business sector in 2022
Leizhou Muyuan photovoltaic power generation project
Feed processing
0.0650 Kg of standard coal/Kg pork
Accounting scope 2022 2021 2020
Pig farming
0.1493 Kg of standard coal/Kg pork Scope 1 Emissions (1000 tCO2e) 3894.5 3076.5 1496.8
Slaughter and meat production
0.0058 Kg of standard coal/Kg pork Scope 2 Emissions (1000 tCO2e) 3405.6 2835.4 1097.0
Note 1
Others (Mainly referring to construction in Carbon emission reduction (1000 0.0069 Kg of standard coal/Kg pork 3197.2 2510.6 898.8tCO
progress and administrative office business) 2
e)
Total carbon emissions 410.29 340.13 169.51
Greenhouse Gas Emissions Management
Note 1: Compared with the technical emission reduction value data the emission reduction of low-protein diet and pig house heating
without fossil fuels.Muyuan believes that green and low-carbon is the inevitable trend of social development. We not only conduct
low-carbon management in the scope of environmental management but also believe that the Company can create
more social value in the future only by seizing the opportunity of low-carbon management. In accordance with the
ISO14064 standard and the 2006 IPCC Guidelines for National Greenhouse Gas Inventories published by the United Carbon emission of each business sector in 2022
Nations Climate Committee we have carried out carbon inventory and accounted for feed processing pig farming
slaughtering and meat processing as well as other processes.Feed processing 0.162 kg CO2e/kg pork
2022
Pig farming 0.713 kg CO2e/kg pork
Muyuan’s total greenhouse gas emis- Emission intensity: Compared with last year
emission intensity decreased Slaughter and meat production
sions reached 4.1029 0.123 kg CO e/kg pork million tCO2e 1.00 kg CO2e/kg pork 2by 4.94%
48 49Environment
Climate Change Risk and Response
Types Climate-related risks and impacts Countermeasures
In recent years extreme weather has occurred frequently which has a great impact on normal production and life.The problem of climate change can not be ignored. Muyuan has always been concerned about the impact of climate
change on human society and Muyuan’s business. We refer to the relevant recommendations of the Task Force on China’s carbon emission market
Climate-related Financial Disclosures (TCFD) to identify the main risks of the Company in the context of climate only requires quota trading for
power enterprises. If the Company is Formulate long-term risk response
change and will further formulate ESG-related action plans to deal with climate risks in the future. Pol i cy and included in the key emission entities plan; continue to carry out research
legal risks of the China Carbon Emission Trade and innovation of pig house
Exchange (CCETE) it may increase environmental control technology.the company’s carbon emission
Types Climate-related risks and impacts Countermeasures compliance costs.The increase in the frequency of
extreme weather events such as Stakeholders are more concerned Actively publish the Green and
rainstorms floods and typhoons about the Company’s response to Low-carbon Action reports
may result in damage to production climate change natural resource ESG reports and CSR reports
facilities interruption of operations Reputational consumption etc. If the relevant and systematically disclose the
and reduction of the Company’s risk work is not up to expectations it latest actions of the Company on
production capacity. It may also may have a negative impact on the issues such as climate change and
cause damage to personal safety and Formulate relevant emergency Company’s image. natural resource consumption to
Short-term the Company’s assets resulting in management measures and stakeholders.risks environmental safety issues. The strengthen extreme weather
frequent occurrence of extreme emergency exercise. Risk of
weather may cause an increase in transformation
food prices which may lead to
an increase in the production and
operation costs of the Company Externally we will actively
Physical Risk posing a greater challenge to strengthen the training of the sales
the Company’s supply chain so that the sales staff can recognize
management. the progress of the Company’s
low-carbon work and ensure that
If downstream customers make
the Company’s carbon emission
requirements on the carbon emission
management related results and
intensity of products it will increase
Changes in rainfall and extreme Establish a global supply chain Market risk performance can be accurately the uncertainty of the Company’s
fluctuations in weather patterns may management system combined conveyed to the client. sales business and bring certain
lead to higher capital construction with derivatives business to Internally we will continue to market risks.Medium and costs (such as extended construction strengthen the resilience of the carry out research on energy
long-term period and equipment damage) supply chain to cope with climate conservation and emission
risks higher insurance costs for equipment change. reduction throughout the life
and personnel. Chronic temperature Formulate long-term risk response cycle and continue to iterate low-
rise requires higher conditions for plan; continue to carry out research carbon environmental protection
pig breeding and transportation and innovation of pig house technologies.resulting in higher costs. environmental control technology.
50 51Society
Society
5252 5353Society
Product Responsibility Management Build an organizational structure for extensive quality management
Muyuan has established an organiza-Muyuan adheres to the business purpose of “producing healthy food for the society improving the quality of life of tional structure for extensive qualitythe public and helping people enjoy an abundant life” and regards fulfilling the responsibility for product effectively management covering five major de-
as the top priority of our work. On the one hand we upgrade our hardware apply new air filtration in pig houses and partments: production pig breeding
promote the application of equipment of intelligent environmental control intelligent feeding and water source ultra- veterinary quality control and sales.filtration; on the other hand we continue to optimize our food safety and quality management system to jointly ensure It coordinates food safety and quality
food safety and improve product quality. management work from four aspects:
food safety carcass quality pig qual-
Food Safety Management System ity and delivery management being
a strong support for ensuring food
safety and improving quality.In 2022 we improved the food safety and quality management system and strove for excellence in management Scene of signing the Objective Responsibility Statements for Food Safety and Quali-
structure security system traceability of the whole industry chain and cultural development. At the same time in ty Management in 2023
view of the key and difficult points in food safety and quality management precise management is implemented to
ensure product quality.Concepts and principles of food safety and quality “711” Food Safety and Quality Assurance System
Muyuan attaches great importance to food safety and quality. In the management practice we have gradu- We have always been striving for excellence in food safety management constantly improving and upgrading food
ally summarized the food safety concepts and principles with Muyuan characteristics. safety management and established the “711” food safety and quality assurance system.Philosophy of food safety and quality management
7 refers to carrying out the whole-chain food safety and quality management from the seven sectors
including inputs feed processing breeding and production testing and verification marketing and
Produce high-quality pork with food safety as the priority sales slaughter and meat production and market circulation thus creating a complete food safety
and quality management chain from farm to table strictly controlling the implementation of stan-
dards in all links of the industrial chain and ensuring the implementation effect of standards.Principles of food safety and quality management
Prevention Risk assessment Transparency 1 refers to establishing a big data traceability system for food safety and quality that covers the entire
principle principle principle industry chain by integrating the information systems of feed pig farming and slaughter and im-
plementing full digital quality management thus achieving transparent traceability throughout the
entire industry chain and ensuring food safety and quality through digitalization.Put prevention first in Assess comprehensively Make the whole process
the production process to the possibility and im- of feed medication and
minimize the risk of food pact of risks with hazard nursing in the production
safety. analysis tools and develop process transparent acces- 1 refers to the establishment of a food safety and quality cultural system to unify the cognition and
effective risk management sible and traceable. behavior of employees.measures.
54 55Society
Food Safety and Quality Training
ty trac
eability system
li that
qua cod v
an
ers
y the Through online publicity and offline practice activities Muyuan continues to strengthen food safety and quality
afe
t w
1. awareness enhance staff capacity and ensure the effective implementation of the Company’s food safety and quality
Input management work.
7.2.
Market cir- Feed process- Promotion and Implementation of Food Safety and Quality in 2022
culation ing
Guarding
quality The Food Safety Project Team and the Quality Project Team regularly train the staff in Food safety
6. with life 3. regions subsidiaries and production lines and organize examinations and competency training
Slaughtering Pig Farming certification to enhance food safety and quality awareness and work ability at all levels.
5. 4. By the end of 2022 the food safety map had covered all sites and the Company regu-
Sales Inspection Food Safety Map larly uploaded the latest food safety knowledge and courses to the learning platform so
and testing that employees could learn food safety knowledge by scanning the food safety map.Organize group-regional food safety and quality management meetings every month to
Food Safety and hear the voice of the market and guide the improvement of internal management; use
Quality Confer- data to see through the business analyze the gap and clarify the direction of further im-
Quality management system certification ence provement; establish a meeting resolution supervision mechanism to ensure the results
of food safety and quality improvement.FSSC22000 system certification (Food Safety System Certification): All feed mills of Muyuan implement the
FSSC22000 system standard recognized by the Global Food Safety Initiative (GFSI). By the end of 2022 14 feed
mills have passed the certification of FSSC22000 food safety management system for ensuring the quality of feed
with high standards. In view of the technical path technical scheme outstanding experience and
Special train- cases management scheme and requirements information system application
GLOBAL G.A.P. (Global Good Agricultural Practices) Certification: Muyuan applies GLOBAL G.A.P. Standard ing session of food safety and quality improvement special training sessions are organized
to standardize the production process and ensure food safety. By the end of 2022 Huaxian Muyuan No. 8 farm weekly according to business needs to help employees improve their abilities.Neixiang Muyuan No. 27 farm Shangshui Muyuan No. 8 farm Tanghe Muyuan No.1 farm and Tongyu Muyuan
No. 8 farm had passed the GLOBAL G.A.P. Certification.Neixiang Muyuan Modern Agricultural Complex Co. Ltd. has been certified by China G.A.P. (Good Agricultural All-staff food In order to enhance employees’ food safety awareness and implement food safety man-
Practice) and has passed the authentication review by the Certification and Accreditation Administration of the safety certifica- agement standards Muyuan carried out food safety certification for all employees with
P.R.C. tion over 100000 people participating in the certification and the certification pass rate was
99.06%.
Muyuan Meat’s slaughter houses in Neixiang County and Zhengyang County have passed the China HACCP
Quality Management System Certification.
5657
The food s
cha
in
ho
leSociety
Promote Antibiotic-Free Pig Farming to Produce Healthy Pork Muyuan Pig Disease Control System -- Skynet Project
Muyuan strictly regulates and controls the use of antibiotics actively explores the practice of reducing antibiotics and Muyuan has continuously intensified the research on pig diseases weaving the Muyuan Skynet of pig diseases.formulates medium- and long-term plans for order transition from “antibiotic reduction” to “antibiotic-free pig farm- At the beginning of the establishment of the enterprise a veterinary team was set up to study pig diseases anding”. continued to carry out research inspection and diagnosis. In the past five years Muyuan has invested 3 billion
yuan in finance 920 million yuan in pig disease detection and 130 laboratories. In 2022 151 viruses 181 bac-
Formulate the three-level goal of “antibiotic-free pig farming” teria and 27 parasites were found in the survey of 62 million samples. Thus the Skynet project covering the
eradication of all pig diseases was formed promoting the establishment of a perfect health management system
What we What we Antibiot- and a world-class veterinary technology platform. Muyuan has worked out the technical path for the prevention
have done: are doing: ic-free goals: and control of major diseases such as PRRS ileitis and atrophic rhinitis (AR) and achieved the performance of
1137 g daily gain in batch finishing pigs. In the next step Muyuan will continue to carry out epidemic disease
Strictly comply with Goals under implementation: By promoting in- elimination promote the production of high-quality pork from disease-free pig farming to antibiotic-free pig
national standards of telligent pig farming Muyuan is building a high-No use of “prescribed farming and help the high-quality development of global pork food industry.withdrawal; avoid using health pig herd with antibiotic reduction throughantibiotics” in the whole“growth-promoting anti- disease elimination application of alternativeprocess from nursing tobiotics” in the course of antibiotic products precise medication biosafe-
finishing.farming. ty prevention and control and other measures. Health warning and closed-loop medication management
Intelligent health warning
Build a defense line of health
Muyuan uses intelligent inspection equipment and information system to establish a three-level health warning mech-
Healthy growth environment: Muyuan has developed and applied a new type of intelligent pig house in anism captures abnormal pig information through intelligent inspection equipment and transmits abnormal pig infor-
which the air is filtered by four layers before entering the pig house. Through intelligent and precise control mation to pig technicians and management staff through information system.each stall is ventilated independently. The waste gas is purified in the air outlet of the pig house with a steriliza-
tion rate of 99.9% thus offering a healthy and comfortable growth environment for pigs. Precise medication
Healthy feeding: All feeds are produced by Muyuan. The feed production adopts high temperature steriliza- According to laboratory pathogen diagnosis and drug sensitivity results licensed veterinarians issue prescription
tion process. The feed is sealed in the transportation process to fully guarantee the safety of feed. The farm notes use drugs for diseases use sensitive drugs to treat abnormal pigs and pig technicians need to input medication
is equipped with water source ultrafiltration equipment with a filtration precision of 50 nm to remove patho- information into the information system in time. Muyuan has set up a drug management team responsible for formu-
gensthus providing clean water for the farm and ensuring the health of pigs. lating drug procurement standards and use standards monitoring the types sensitivity and quantity of drugs used in
farms through information systems to achieve closed-loop management reduce the use of non-essential antibiotics
and promote the process of antibiotic reduction.Biosafety: Muyuan upgrades the biosafety prevention and control system. It improves the process standards
from the aspects of personnel materials and four pests guaranteeing internal control and external prevention. Promote the application of alternative antibiotic products
Each responsible person will be supervised and assessed to reduce the risk of epidemic transmission.Muyuan actively studies alternative products for veterinary antibiotics and explores the application of acidifiers pro-
Disease eradication: Muyuan has worked out eradication methods for 17 diseases. By the end of 2022 the biotics plant extracts and other alternative products to reduce the use of antibiotics.eradication rate of pseudorabies in pigs has reached 99.94% and breakthroughs have been made in the eradica-
tion of PRRS Pasteurella and Bordetella.State of certification
Vaccine immunization: Muyuan actively promotes the evaluation of bacterial vaccines designs and imple-
ments immunization programs according to the health status of pig herds and improves the resistance of pigs to As of the end of 2022 51 subsidiaries of Muyuan have passed the certification of ASF-free communities and 125
bacterial diseases. farms have been selected as standardized demonstration farms for livestock and poultry breeding.
58 59Society
Ensuring Animal Welfare Clean drinking water
Farms are equipped with water source ultrafiltration equipment. The ultrafiltration process filters out bacteria viruses
We are committed to promoting animal welfare and fulfilling our commitment to keep our pigs safe healthy and com- and particles and other insoluble substances. With the 50 nm filters 99.99% of pathogenic bacteria can be removed
fortable. To this end based on the whole business chain we have established a whole life cycle animal welfare man- providing sufficient clean and fresh drinking water for pigs and the bacteria transmission through water can be cut
agement system formulated animal welfare practice standard paid attention to the physiological and psychological off ensuring the health of the herds. Referring to GB5749-2006 standards we regularly take water samples and send
needs of pigs provided healthy diet comfortable housing disease prevention intensive care and precise management them to third-party testing institutions for testing to ensure the water quality for pigs.for pigs and comprehensively practiced the concept of animal welfare to improve the level of pig welfare.Ensure That the Pigs Are Properly Fed
Optimal nutrition
Based on the consumption of net energy and actual digestible amino acid Muyuan develops different feed formulas
for different breeds types growth stages and seasons and establishes dynamic nutrition models to achieve one formu-
la a day so as to ensure that the pigs are properly fed.Safe feed Undergroundwater test report Water source ultrafiltration equipment
85 °C 8 min high temperature sterilization technology is applied in the feed production. Sterilization temperature is Intelligent feeding and ad libitum
monitored online in real-time and controlled intelligently to ensure the sterilization effect. The outside air enters into
the cooling chamber after coarse-efficiency primary-efficiency and high-efficiency filtration to create a clean cool- The intelligent feeding system of the farms automatically collect information such as feed intake and water consump-
ing environment. The whole transportation process from feed mills to the farms is airtight. Farms are equipped with tion analyze herd health conditions and adjust the nutrition formula according to the plotted growth curve of the herd.smart-operated pipelines for feed transportation to avoid biosafety risk and fully ensure feed safety. Intelligent feeders automatically drop feed and supply water making it easy for pigs to intake feed thus achieving
precise feeding. The troughs are designed to allow pigs to eat at the same time avoid injuries caused by fighting over
food and allow all pigs can eat well.Purchase directly from Self-owned Raw material High-temperature pellet-
places of origin feed mills testing ization and sterilization
Pipeline transportation Pipeline deployment Transportation with
Precise feeding without human contact system airtight tank cars
Intelligent feeding in the farm
60 61Society
Ensure That the Pigs Are Well Housed Environmental control in pig houses
Muyuan has developed a new type of intelligent pig house to achieve fresh air filtration independent ventilation and
Scientific site selection and pig house design exhaust air purification. The standard for pigs comfortableness has been set and intelligent control of temperature
humidity and ammonia concentration of pig houses has been realized through intelligent environmental control sys-
We regard the location of farms as the key to ensure animal welfare. In addition to complying with relevant national tem. Meanwhile real-time monitoring of the whole process of pig farming has been carried out based on the Internet
regulations and requirements on land nature and water source protection farms should also be far away from other pig of Things technology so as to create a healthy and comfortable growth environment and protect the health of pigs. In
herds and areas with high incidence of pig diseases so as to achieve geographical isolation minimize the probability particular we have also installed a light box for nursery pigs equipped with heat lamps to supplement the heat source
of disease outbreak and ensure the health of pigs. When make plans for pig houses number age weight feeding and for newborn piglets and maintain a suitable temperature for piglets.drinking space and other factors related to animal welfare are considered. The pig houses use insulation materials to
keep them warm in winter and cool in summer so that the temperature is favorable for pigs in all seasons.Four layers of air filtration Precise ventilation
Yongji Muyuan No. 2 Farm
We strive to reduce protrusions inside and outside the barns and conduct regular inspections and maintenance to en-
sure that the facilities equipment and materials used do not cause harm to the pigs. In 2022 we inspected and reno-
vated the pens pig runways pig transfer vehicles weighing scales lifting platforms And other equipment of all farms
helping customers inspect pig transport vehicles dispose sharp and protruding objects and reduce skin damage of pig
herds during sales and transportation.Exhaust air purification Piglets protection light box
Sufficient space
We have formulated Muyuan’s stocking density standard as an important basis for the design of pig pen space. The
activity space allows all pigs to lie down at the same time ensuring sufficient space for each pig. We provide pigs
with enrichment materials for chewing rooting and manipulating so that they can express their nature freely. We keep
the pig community structure of each pig barn stable without mixing. So a large number of pigs can live with their pen-
Transport vehicle renovation
mates and their social needs can be met.
62 63Society
Intensive Care to Keep Pigs Healthy Empowerment training
Promoting the concept of animal welfare Muyuan has a perfect talent training system. Through the combination of online and offline trainings Muyuan’s em-
ployees can master technologies involving environmental control pig care abnormal pig identification and disposal
Following the globally recognized “5F” (Five Freedoms) biosafety control cleaning and disinfection. We develop and apply the “Smart Mumu” robot language system. Pig
principle of animal welfare and based on its own operation- technicians can seek answers and help through “Smart Mumu” when they encounter any problems in production.al characteristics Muyuan has formulated and issued the Each new pig technician is assigned to an experienced master. So they can grasp the pig-raising technology with mas-
“Muyuan’s Animal Welfare Manual” with regular training to ter’s help as soon as possible. The pig technician should complete the pig-raising related courses and pass the exam-
help employees better understand the concept of animal wel- ination before raising pigs independently.fare and promote animal welfare practices. It is committed
to making every pig free from hunger and thirst free from Muyuan regularly conducts special training related to animal welfare for pig technicians to ensure that employees
discomfort free from pain injury and disease free from fear understand the time and environment of possible animal welfare problems and have the ability to identify such prob-
and distress and free to express normal and natural behavior lems and deal with emergencies. In 2022 Muyuan put forward the goal of “disease-free pain-free and needle-free”
so that every employee can be proud of the protection of ani- Muyuan’s Animal Welfare Manual continuously improving health management actively promoting disease elimination and gradually promoting nee-
mal welfare. dle-free syringes to reduce pain in pigs.Management plan
Formulate plans for emergencies:
Muyuan formulates response plans for emergencies such as power failure fire flood and blizzard. It installs au-
tomatic transfer switches in the pig houses. Once there is a power failure an alarm will be triggered and the on-
site generator will be automatically started to maintain power supply.Adjust the health management program for pig herds on the farm timely:
The epidemic strains in farms are monitored and the vaccine immunization program is adjusted according to
the health status of pigs. The drug susceptibility database in farms is continuously improved and the medication
program is adjusted in time to reduce the use of antibiotics.Use information system to record production and medication data:
Muyuan has independently developed a production management information platform and BI data analysis sys-
tem which can monitor over 120 indicators from production indicators in various sections to health management
indicators slaughter carcass indicators and meat quality indicators keep track of the production and business
through data and generate precise performance reports in real-time.Regulate operation standard:
Muyuan has formulated operation standards for patrol inspection and pig movement requiring employees not to
treat pigs with violence so as not to cause fear of pigs. The pig herding paddle can be used but it is not allowed
to hit the pig hard to cause injury.Needle-free injection
Reduce waiting time for transportation
The transportation plan is formulated by comprehensively considering the factors such as the outdoor tempera- Inspection of pig herd status and pig house equipment
ture and the duration of pig movement. The staff go to the pig house in advance to pick up pigs and mark them
so as to improve the loading efficiency and avoid the stress caused by the long waiting time of pigs for sale. The intelligent inspection robot monitors the status of pigs in real time identifies abnormal pigs according to the algo-
rithm and notifies the pig technicians and managers by short message.
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Transport and Slaughter Management ESG management system for business partners
In order to improve the comfort of live pigs in the process of transportation Muyuan transformed the hog trucks to Muyuan has established a ESG management system for partners and integrate ESG into procurement strategies and
enhance the anti-skid effect and reduce the risk of pigs slipping or falling. At the same time it added automatic spray- business processes with reference to the OECD Guidelines for Responsible Business Conduct and the United Nations
ing equipment in the vehicles to create a comfortable environment for live pigs on the way. Global Compact Initiative. Muyuan not only pursues sustainable management within itself but also actively encour-
Before sales a reasonable transportation plan was formulated to shorten the transportation distance. Generally the ages its suppliers to carry out business activities by the same philosophy. For this reason we have formulated and
transportation time was 2 hours to reduce the fatigue of pig transportation. The average speed of transportation was issued the Code of Conduct for Muyuan Suppliers which shall be abided by all suppliers. The Codes consists of five
controlled at 60 km per hour. Drivers were required to drive safely according to the operation specifications to avoid parts: labor and human rights health and safety environmental protection business ethics and management system.pig collision and injury. Lame pigs are prohibited from transportation. The pigs were inspected once every 150-200 It applies to all suppliers of Muyuan Food Co. Ltd. and their employees temporary employees etc. With reasonable
km and the status of the pigs must be inspected at each parking place (applying for the animal inspection certificate notice we have the right to audit suppliers to assess their compliance with the guidelines and increase or reduce the
before getting on and after getting off the expressway resting in the service area queuing on the spot etc.) and any purchase volume of relevant suppliers and guide suppliers to improve the level of sustainable development based on
abnormal situation shall be dealt with in time to ensure the safety and comfort of the pigs. their audit results.Muyuan Meat provided comfortable resting pens for pigs equipped with spraying facilities drinking water facilities Main Contents of the Code of Conduct for Muyuan Suppliers
and fully automatic ventilation system. The temperature humidity and air quality were controlled by spraying and
fans to alleviate the discomfort of pigs caused by transportation. All slaughterhouses in Muyuan adopted carbon diox-
ide stunning process to avoid pigs being frightened and experiencing unnecessary pain.Labor environment: The Supplier shall create a safe dignified and fair working environ-
ment for its employees and ensure that employees will not be discriminated against or
Labor and Hu- threatened on the basis of color race sex religion etc.man Rights
Eliminate the use of child labor and forced labor.Creating Value Together and Sharing the Future The supplier undertakes to eliminate abuse and harassment in the workplace.Working environment and conditions: The supplier shall provide a clean and safe office en-Adhering to the commercial civilization concept of “achieving justice fairness openness transparency simplicity vironment and necessary facilities and equipment for employees.ease of mind high efficiency and a win-win situation” Muyuan has actively built a sharing platform for industrial in-
terconnection and established multi-dimensional cooperative relations with partners. It has empowered partners from Occupational health and safety: The supplier shall establish procedures and systems for Health and Safety
technology management capital and other aspects and helped advance the whole industry chain business and up- prevention management tracking and reporting of work-related injuries and diseases.grade management system. Through improving efficiency and reducing costs Muyuan has secured its optimal value Emergency prevention system: The supplier shall establish a disaster prevention contingen-
created the industrial ecology and led the industry development in a bid to jointly champion and work for a symbiot- cy plan carry out emergency drills regularly and provide relevant equipment and devices.ic and win-win business environment .The suppliers shall have relevant environmental permits in accordance with national envi-
Muyuan took sustainable development as an important part of its procurement strategy continued to benchmark the ronmental protection laws and regulations.best practices at home and abroad integrated the concept of social responsibility into the whole management process
of partner access assessment and certification . Through deepening cooperation with partners industry organizations Adhere to relevant laws and regulations strengthen the management of water resources
and other stakeholders Muyuan helped suppliers continuously enhance their sustainable development and jointly built Environment wastewater exhaust gas solid waste etc.a sustainable supply chain. Take actions to reduce greenhouse gas emissions.Actively carry out and support practical activities that are conducive to biodiversity conser-
vation and that avoid the risk of deforestation.
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Anti-Corruption Management
Anti-commercial bribery: The suppliers shall not directly or indirectly promise offer bribes
to or accept bribes by government officials political parties other commercial entities etc.for the purpose of obtaining retaining business or attempting to influence decision-mak- Muyuan attaches great importance to the creation of a business environment. Integrity is the bottom line of all busi-
ers’ decisions. It shall not bribe or transfer improper benefits to employees of Muyuan for nesses. We actively carry out anti-corruption management from the aspects of system and cultural construction.the purpose of attempting to obtain improper benefits or maintaining cooperation with
Business Ethics Muyuan
Adhere to the principle of honest management and do not slander or defame the goodwill The whole staff of Muyuan signed a letter of commitment to honesty and integrity.of Muyuan and its peers. Signing of the
integrity agree- Partners need to sign an integrity agreement participate in the integrity publicity and com-Prohibit unauthorized commitments.ment plete the online examination and can cooperate only after passing the examination. The
Do not monopolize the market or conduct unfair competition. agreement prohibits bribery improper contacts fraud and other acts and formulates a strict
punishment plan.The financial status and business activities of the suppliers shall be subject to the super-
Management Sys- vision of the audit unit It shall be subject to the independent economic examination and The supplier shall pay the deposit of honesty and integrity before admission. If the supplier
tem evaluation conducted by the audit unit on the authenticity legality and effectiveness of its Deposit manage- violates the agreement of honesty and integrity in the process of cooperation the cash de-
financial revenue and expenditure and other economic activities . ment posit shall be deducted.In daily business contacts Muyuan actively carries out ESG compliance-related explanations and standardization Platform review All business is carried out on the intelligent procurement platform with full visibility and
work for suppliers strengthens publicizing and implementation of the concept to suppliers and supervises whether management transparency throughout the process.suppliers have ESG related violations. In the event of human rights violations environmental incidents or other social
events that have a negative impact on suppliers the company will immediately take action to stop the relevant acts of
suppliers suspend business cooperation and require suppliers to make corrections within a time limit otherwise the We implement all-staff reporting open diversified reporting channels build a clean and
cooperation will be terminated. This year we conducted group-level ESG training and invited partners to participate honest reporting mechanism and formulate the “Report and Reward System”. Both inter-
in the training. nal employees and external partners can report bribery improper exchanges and other acts
to the company’s audit department and the complaint telephone numbers of department
managers and the company’s audit shall be publicized on the business quotation website of
Report by all the supply chain management system.staff The information of whistleblowers is under strict protection. There is zero tolerance for any
form and degree of retaliation and the acceptance personnel follow the principle of avoid-
ance.In 2022 the Audit Department investigated and dealt with 106 cases related to honesty and
integrity and the relevant responsible persons and units were dealt with seriously in accor-
dance with the company’s relevant integrity system.We quarterly organize integrity conference to explain integrity cases and conduct warning
Advancement
education hold integrity publicity and education activities such as International Anti-Cor-
of Integrity and
ruption Day and release posters tweet articles and videos through online platform to
Self-discipline
strengthen integrity ideological education.Muyuan ESG training site
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Strengthening Communication with Suppliers Muyuan uses bulk feed tanks to transport feed through-
out the process and promotes feed products’ bulk deliv-
The Company has established a mature communication mechanism with suppliers which involves online ery automatic loading and unloading closed storage and
methods such as WeCom phone calls the intelligent procurement platform WeChat official account e-mail transportation and automatic feeding which not only
and offline methods such as business visits and reciprocal visits. For common business issues we conduct saves consumables such as packaging labels but also
communication and training with suppliers through group-wide quarterly supplier conferences quarterly/ reduces labor in feed production transportation and use.monthly supplier meetings of different regions business notification letters/negotiation letters etc. For stra- In 2022 20.37 million tonnes of feed were produced for
tegic cooperation issues business negotiations are held through on-site visits to improve cooperation sticki- which equivalently we saved 814.8 million 25 kg pack-
ness. ing bags.Muyuan also actively encourages suppliers to carry out
Supplier Performance Management packaging reduction actions. Raw and auxiliary materi-
als such as soybean meal rice bran meal stone powder
Muyuan continuously improves the periodic evaluation system for suppliers carries out quarterly semi-an- calcium hydrogen phosphate fermented soybean meal
nual and annual evaluations based on the actual performance of suppliers in supply quality price contract and amino acids are transported and stored in bulk or Bulk feed trucks
performances strategic synergy honesty and integrity and social responsibility fulfillment and according in tonne bags. This year 1.94 million tonnes of raw and
to the evaluation results performs hierarchical managements. On the basis of the results of the annual per- auxiliary materials were purchased for which equiva-
formance evaluation the partners are certified annually at four levels of AAAAA AAA A and B. To those lently we saved 77.6 million 25 kg packaing bags.outstanding partners the Company grants honorary titles signs annual cooperation agreements increases
cooperation share and deepens strategic cooperation. Sustainable procurement and low-protein diets
Sustainable Supply Chain We actively promote sustainable soybean procurement and constantly increase the proportion of sustainable soybean
in procurement. Cargill and Yihai Kerry Muyuan’s most important soybean meal suppliers are practitioners of sus-
Reduced packaging tainable soybean procurement and their direct or indirect supply of soybean products already accounted for 44.86
In the procurement process we reduce the packaging to improve sustainable procurement and strictly im- percent of Muyuan’s total soybean product purchases in 2022.plement efficient recycling of purchased materials to avoid waste. Soybean meal - one of the soybean crushing products - is our important raw material. Though we do not purchase
soybeans directly we not only require soybean product suppliers to comply with non-deforestation standards but also
Reduced packaging Procurement and recycling practices actively advocate upstream suppliers of soybean product companies to gradually reduce deforestation during soybean
planting and actively monitor progress in order that deforestation and habitat loss risks related to soybean procure-
ment can be avoided.Reduced packaging Procurement and recycling practices
Muyuan had been conducting trials of low-protein diets for pigs since 1992 and widely promoted and applied it in
2000. This technology reduces soybean meal consumption by adding appropriate types and quantities of biosynthetic
Joint R&D of
amino acids while ensuring herd growth performance and pork quality. In 2022 Muyuan’s annual soybean meal usage
environmentally The filter elements can be recycled by being replaced with nanoscale and chemical fiber
accounted for 7.3% far ahead of the national average level.friendly materi- materials in high-efficiency air filters and washable materials in primary filters.als Muyuan has repeatedly disclosed the low-protein diet technology and its application in an open and free manner at
industry conferences since 2011 and put “vigorously promote the application of low-protein diets” into the proposal
submitted to the National People’s Congress to promote the industry’s high-quality development. If the low-protein
* Air filter recycling: cooperate with suppliers to collect and disassemble used filters for diet technology is applied nationwide 20.74 million tonnes of soybeans (about a soybean output from 153 million
waste recovery and reuse. mu/10.2 million hm2 of arable land) would be saved and a nitrogen emission of 845 thousand tonnes would be re-
Material recy- * Environmental controller recycling: cooperate with suppliers to collect used ones and duced.cling manage- take a “three for one” policy for repair and reuse.ment
* Battery recycling: cooperate with suppliers to recycle.* Woven bag recycling: reuse after soaking for disinfection.
70 71Society
Win-Win Development with Value Chain Partners Continuous iterative upgrade of intelligent sales
We continuously promote the construction of the information-based sales management platform and improve the ser-
vice level while providing high-quality products.Implementation of Shared Warehouse Model
Account opening and contract signing can be completed for customers online. The sys-
In order to solve the problems in the traditional supply Intelligent sales tem pushes daily the latest information on available hogs historical transaction prices
chain such as insufficient transparency of supply and APP is bills etc. Customers can check the logistics progress of their orders in real-time and
demand information severe inventory backlog long iteratively up- consult us or give feedback online at any time for which Muyuan will provide timely graded.supply cycle and high distribution costs Muyuan has responses and solutions. Based on these functions it’s expected to create an impartial
joined hands with partners to explore and implement the fair open and transparent trading environment and improve transaction efficiency.shared warehouse model. As of March 2023 a total of
16 shared warehouses have been set up in centralized pig Logistics man-
farming areas across the country forming a supply net- agement system Online order processing and the visualization of the whole logistics process are achieved
work covering North Central and South China. Through is iteratively to improve vehicle efficiency and reduce the transportation cost of customers.big data analysis of the pig farming scale and expected upgraded.product demand in the region supply and demand can
be automatically matched. Based on that inventory
planning can be made in a proactive manner to improve Intelligent Based on algorithms it realizes automatic weighing and data reading and added the
supply efficiency reduce supply chain inventory costs A shared warehouse for Shandong region Weighing Sys-
tem 3.0 functions of magnetic door switches and camera-integrated intrusion alarm to avoid and lead to efficient coordination and win-win results for
has been human intervention when weighing pigs avoiding integrity and honesty issues while
all parties in the supply chain. launched. improving on-site delivery efficiency.Provide Quality Service
Hog sales: customer-first and attentive services Pork sales service: reliable products make peace of mind for customers
Muyuan always adheres to staying customer demand-oriented fair and equitable and constantly optimizes With the tenet of “creating value for customers” Muyuan Meat introduces the world’s advanced meat processing lines
the way and process of hog trading making transactions more efficient and worry-free. In 2022 Muyuan and supporting equipment and applies the ISO9001 quality management system and China HACCP standards to pro-
sold 61.2 million hogs and served nearly 8000 customers in the pig business. duce “quality-assured meat” for customers. In 2022 Muyuan Meat slaughtered 7.36 million hogs serving more than
10 thousand customers and established cooperations with catering retail enterprises such as Pupu Mall ( 朴朴 ) Fre-
Customer shippo ( 盒马 ) Hormel and Jiutian Home ( 九田家 ).Worry-free Selling pigs with
bidding delivery empty stomach According to customers’ individual needs Muyuan Meat also provides customized services exclusive team services
and cold chain logistics services to enhance customer experience.We adopt the industry’s first Presence in person is not needed for cus- The Company prohibi ts Customized Exclusive Cold chain
customer bidding model tomers in the whole delivery process. feeding the pigs eight hours services team services logistics
which gives customers inde- Relying on the Company’s self-developed before the sale to prevent
pendence and features zero APP “Intelligent Muyuan”( 智 慧 牧 原 ) increasing the pig’s weight
intervention zero bargaining the weighing settlement and logistics with feed weight so that the We provide customized prod- Exclusive service team provides Pork is transported under cold
and zero privilege throughout transportation can be watched through mo- customers’ interests are safe- ucts that satisfy the product timely service to customers. chain and kept fresh through-
the process to match good bile phones which is simple worry-free guarded. standards and requirements of out the process to ensure
prices with good quality. efficient and win-win. customers. quality.
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Enhance Financial Support for the Pork Industry Eradication Technology Summit held in Zhengzhou
as a representative of the enterprise where the topic“Eradication Strategies for Major Pig Diseases underTaking the development needs of partners in the industry chain as the starting point Muyuan has built a financial ser- the New Situation” was mainly focused on and dis-
vice platform for the industry chain which efficiently integrated business data of core enterprises government affairs cussed. During the summit Director Niu Min shared
data Internet big data etc. achieving full sharing and integration of bank government and enterprise data. the strategies and practical experience of Pseudorabies
In 2022 Muyuan continued to promote financial support for the industry. Starting from the development needs of in- eradication in pigs from the perspective of a pig farm-
dustry chain partners it built a financial service platform for the industry chain to integrate internal and external data ing enterprise and reached a consensus with industry
from multiple sources. It carried out financial strategic cooperation of the industry chain with financial institutions professionals on the key points of animal disease con-
such as Agricultural Bank of China Bank of China and Zhongyuan Bank; as a result 1048 small and medium-sized trol and eradication so as to help achieve the goal of Niu Min Director of veterinary medicine of Muyuan was
enterprises got more efficient convenient and low-cost supply chain financial services and 13.45 billion yuan of animal disease eradication. sharing experiences in disease eradication.bank funding support was provided to partners for win-win development. By jointly building an efficient and stable
industrial chain fund flow the pork industry chain obtains continuous force and strength for healthy development. In order to implement the guidance of “pursuing development with a focus on quality improvement” proposed in the
14th Five-Year Plan as well as accelerate the establishment of association standards and technical specifications that
are compatible with such a development of agriculture and animal husbandry the China Animal Agriculture Informa-
tion Association together with leading enterprises in the animal husbandry industry and financial investment institu-
tions jointly prepared the Guidances for Animal Husbandry Industry ESG Information Disclosure.On March 9 2023 China Animal Agriculture Information Association held a seminar in Beijing on the association
standard Guidances for Animal Husbandry Industry ESG Information Disclosure (Draft). As one of the drafters
Muyuan took part in the discussion and put forward constructive suggestions.Next Muyuan will continue to actively participate in the preparation of this association standard promote the animal
husbandry industry to strengthen environmental management improve product quality and safety enhance supply
chain risk management and introduce public interests into the enterprise value system so as to realize the joint pro-
motion of corporate value and social value and strive to promote the high-quality and sustainable development of the
industry.
2022 Henan Exchange Meeting of Pig Farming Elites
Promote Development of Industry
In 2022 we held exchange meetings and built a technical exchange platform through which 811 technical support
and consultations were provided for farmers around the business area in terms of breeding health management feed-
ing management pig house design environment-friendly operation food safety biosecurity etc. to help them solve
practical problems in pig production.This year during our participation in the conference on the development of the livestock and poultry slaughter indus-
try organized by the Ministry of Agriculture and Rural Affairs we elaborated on our production and operation from
the aspects of slaughter and processing and discussed the situation and problems of the pig industry with other partici-
pating enterprises in order to jointly promote the stable and healthy development of the industry.Muyuan participated in the seminar on the association standard Guidelines for Animal Husbandry Industry ESG Information
In July 2022 Niu Min Director of veterinary medicine of Muyuan participated in the Swine Diseases Control and Disclosure (Draft)
74 75Society
Creating a Win-Win Industrial Ecosystem Since the highway port was put into operation in April 2022 it has completed the construction of a warehouse with a storage capacity of 81 thousand tonnes and served a total of 46 thousand vehicles.Henan Qianmu Biotechnology Co. Ltd.Henan Qianmu Biotechnology Co. Ltd. was jointly established by Changzhou Qianhong Biopharma Co. Ltd.While developing itself Muyuan actively builds a shared platform for industrial interconnection and estab- and Muyuan Foods Co. Ltd. It takes the resource advantages of Muyuan’s domestic pig breeding and slaughter-
lishes multi-dimensional cooperative relationships with partners. Through management funding technol- ing to build a global-scale and traceability-leading biopharmaceutical base for comprehensive utilization of pig
ogy procurement etc. Muyuan vigorously supports the common growth of value chain partners and gives by-products such as pig small intestine and produces a series of bulk drugs and preparations and related products
full play to resource advantages of all parties for the purpose of improving quality and efficiency and form- including but not limited to crude heparin sodium heparin sodium and low molecular weight heparin sodium.ing a symbiotic and win-win industrial cluster. These products are prepared for treating human diseases such as thrombosis or embolism in order to satisfy the
high-speed development of biomedicine and safeguard human health.Pig Industry Cluster
Animal Health Industry Cluster
By the end of 2022 more than 3000 supply chain enterprises have settled in Neixiang and Nanyang form- By the end of 2022 Muyuan has cooperated with partners to build an animal health industry cluster based on animal
ing a good ecology for industry cluster development. medicine and vaccine projects to promote industry development. The animal health industry cluster mainly includes
three animal medicine and vaccine projects: CAHIC-Muyuan project ULAH-Muyuan project and Xinghua Biotech-
nology project(wholly-owned). After the projects are put into production it is expected to achieve an output value of
Major projects of pig industry cluster of Muyuan in Neixiang 4.5 billion yuan provide jobs for 1000 people and achieve the transfer of labor force locally. Besides the projects
will drive the common development of upstream and downstream industries such as material supply warehousing
Neixiang Muyuan Meat Industry Complex and logistics and packaging so that comprehensive improvement of social and economic benefits can be achieved.With a total investment of 5 billion yuan the project integrates feed processing breeding farming slaughtering
and meat processing. The 21 new air-filtered multi-story pig buildings with an annual output value of 10 billion Henan Xinghua Biotechnology Co. Ltd.yuan greatly improve land utilization. After the project is completed it will achieve an annual production ca- Established in September 2019 and funded by Muyuan Foods Co. Ltd. Henan Xinghua Biotechnology Co. Ltd.pacity of 720 thousand tonnes of feed and 2.1 million pigs and an annual slaughter capacity of 2.1 million pigs. is a biological product factory that integrates the R&D production packaging warehousing of animal vaccines
Currently all 21 multi-story pig buildings of the project have been put into operation. and related services. The factory is located in Wolong District Nanyang City with an investment of 500 million
Livestock Equipment Park yuan. It is expected to have an annual sales revenue of 2 billion yuan after reaching full production and provide
It is estimated that the investment of the project is 5 billion yuan covering an area of 1500 mu (≈ 100 hm2) with jobs for 300 people.an annual output value of 15 billion yuan and 5000 jobs. Currently the first phase of the project has been com- CAHIC Muyuan (Henan) Biopharmaceutical Co. Ltd.pleted and delivered. Enterprises have settled in covering projects such as controller manufacturing intelligent The company was jointly established by China Animal Husbandry Industry Co. Ltd. (“CAHIC”) and Muyuan
electric control system manufacturing and special glass manufacturing. Foods Co. Ltd. in May 2022. It is located in Wolong District Nanyang City with a project investment of 470
Muyuan Foods City million yuan. After the project is put into production it will have an expected output value of 1.5 billion yuan and
Muyuan Food City is located in the Industry Agglomeration Zone of Neixiang County and takes the main task provide 300 people with jobs.of forming an industrial cluster for the deep processing of meat products improving product value and building Henan ULAH-Muyuan Veterinary Medicine Co. Ltd.a global meat processing base. At present the first phase of the project with a slaughtering and meat processing The company was jointly established by United Laboratories Animal Healthcare Pharmaceutical (Inner Mongo-
capacity of 2 million pigs has been completed and put into production. lia) Co. Ltd. and Muyuan Foods Co. Ltd. in August 2022. It is located in Neixiang County Nanyang City with
Neixiang Intelligent Logistics Park a project investment of 140 million yuan. After the project is put into production it’s expected to have an output
The project is planned to cover an area of 4051 mu (≈ 270.07 hm2) with a total investment of about 3 billion value of 1 billion yuan and provide jobs for 200 people.yuan. Take Muyuan’s pork business as the base it will utilize the location advantage of locating at the junction of
Henan Hubei and Shaanxi provinces to provide logistics services for various industries and reduce logistics costs
for them through road-rail intermodal transport.After completion the project can accommodate more than 500 enterprises of various types annually serve 910
thousand vehicles handle 10 million tonnes of cargo create an output value of more than 20 billion yuan and an-
nual tax payment of more than 200 million yuan and directly provide jobs for 3000 people which will strongly
support the regional economy take-off.
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Employee Welfare
66.44%33.56%
Employee Recruitment and Career Development Number of female employees under 30 years old 10680
Principle of recruitment Number of female employees
aged 30 and above 21142
Muyuan adheres to the people-oriented concept and regards employees as the most valuable resource and treasure of a
company. People with pure character and a high sense of social responsibility will be be selected and talents who are
consistent inside and outside principled honest trustworthy responsible willing to share and give will be appointed.With such a principle for selecting and appointing talents Muyuan has built up an open platform for young people to
achieve their values in life.We actively carry out campus recruitment and continuously enlarge the Company’s talent team of employees with aDuring the recruitment process we strictly abide by the principles of “diversity inclusiveness and equality in em- higher education background. As of the end of 2022 Muyuan had employed 40000 college graduates and had con-ployment” and respect the human rights of employees. No job applicant will be treated differently or discriminated ducted co-operations with 82 colleges. In 2022 we carried out 128 campus recruitment campaigns 48 of which are
against due to factors such as their race gender color age family background religious beliefs physical fitness and for specialized posts including production veterinary meat intelligence feed etc. to introduce professionals from
original nationality ensuring that everyone is fairly treated at work. In addition Muyuan strictly follows the Provi- various disciplines. Meanwhile we have been actively recruiting international talents through overseas special recruit-
sions on Prohibition of Child Labor and other related laws and regulations. Muyuan prohibits any subsidiary from ment campaigns to build a young international and professional team. 140000 talented people have been brought
recruiting minors under the age of 16 and continuously improves the pre-employment information review mechanism together to promote the development of the global pork and food industry.to avoid the use of child labor.We attach importance to gender equality and support women’s career development. By the end of 2022 over 31000
women were employed in Muyuan with 31.25% of senior management being women. The number of female staff in
management positions is 1436 accounting for 15.8%. At the same time we comply with national legal requirements
to provide employees with maternity and paternity leave.Total number of employees 22.66% 77.34%
140403 Total number of
female employees 31822
Total number of
male employees 108581
5.83%31.63%
Number of male employ-
ees under 30 years old 34349
Number of male employ-
ees aged 30-50 67908
62.54% Number of male employ- Campus recruitment activity
ees over 50 years old 6324
78 79Society
Employee training Employee Training Mechanism
Muyuan exercises the ideas of “combining talent selection and cultivation theory and practice” in talent cultivation
The Company releases posts containing the latest technology business and manage-
and applies a mentorship system which cultivates talents with the guidance of excellent staff. Based on the Company’s ment knowledge in the internal intelligent learning platforms such as “Smart Mumu”
development and operation needs as well as the employee growth plans Muyuan has built a comprehensive talent Intelligent learning “Pig Assistant Xiaowei” and “Production Xiaozhi” which accurately push information
cultivation mechanism covering the Company’s corporate culture vision management target management operation platform based on staff position. By searching for keywords employees can obtain relevant
management and professional technology etc. With professional and diversified learning platforms and learning re- learning materials and knowledge anytime and anywhere which greatly improves their
sources the Company is committed to cultivating comprehensive talents and helping them grow. learning efficiency.In 2022 the investment for employee training exceeded 500 million yuan covering all employees. The average annu-
al training time for employees exceeded 100 hours. Through the “Ought to Know” empowerment and certification mechanism the Compa-
Basic requirements ny ensures that probationary employees are adequately trained on the Company’s basic
for new employees: rules and regulations professional competencies and job qualities to enhance the pro-
“Ought to Know” fessionalism of employees.During the reporting period the Company’s management and learning platforms were
updated simultaneously to achieve comprehension and tracking of management.Every employee is empowered though the master-apprentice mechanism at all levels.Master apprentice As of the end of 2022 the Company had 27006 masters and 86059 apprentices.management mecha- We continue to improve the master-apprentice management mechanism. During the
nism reporting period we defined the evaluation mechanism for the honor of masters at all
areas encouraging them to teach actively.Talent assessment The Company selects elite talents through a talent assessment mechanism and put them
on important posts. The selection methods and scope are continuously being refined
mechanism and expanded covering personnel at all positions.The in-pool talents are precisely empowered through improved the in-pool talent culti-
vation mechanism and customized talent cultivation programs.
2022 Corporate Culture and Management Training In-pool talents culti-
vation mechanism During the reporting period we updated the mechanism and improved the empower-
ment cultivation and evaluation plans for talent pools at all levels achieving broader
empowerment.Management cadres are selected appointed dismissed and managed through cadre
Cadre standards standards. Based on the Company’s strategic needs we can clarify the requirements
and shortcomings for cadres thus providing targeted empowerment.Career development path
Based on the characteristics of each department and position we have established a scientific and reasonable promo-
tion channel for employees. Through performance management and cadre management mechanisms and based on the
principle of result orientation all employees receive career development performance evaluations that meet the char-
acteristics of their positions. A comprehensive objective fair and just comprehensive performance evaluation pro-
vides employees with a clear and clear career promotion path. We relate promotion channels to qualifications for each
position and define requirements for each job level. Our promotion principles include combining vertical promotion
with horizontal promotion and successive promotion with leapfrog promotion. Based on these principles we take in
employees’ personal qualities occupational competences post preferences and performance into full consideration to
Specialized training on the pig farming knowledge and technology in the southeast region of Henan Province cultivate excellent cadres.
80 81Society
In order to help more employees improve their vocational skills and broaden their career development channels Safeguarding employee interests
Muyuan started vocational skill certification in 2021 and 45 subsidiaries have obtained the qualification. The Compa-
ny regularly carry out training and certification on special topics including corporate culture operation remuneration
and welfare food safety and safe production through online training and examinations practical operation certifica- Muyuan strictly abides by the Labor Law of the People’s Republic of China Labor Contract Law of the People’s Re-
tions offline assembly for training and WeChat mini-Program push notifications. As of the end of 2022 more than public of China Social Insurance Law of the People’s Republic of China and other relevant laws and regulations and
30000 employees have obtained vocational certificates and become skilled workers who master intelligent equipment continuously improves the human resource management system so as to effectively protect the rights and interests of
and advanced technology. employees and solves their concerns so that they can work here with at ease and confidence. Also we fully respect the
freedom and collective bargaining rights of employees and sign collective contracts with labor unions in accordance
The Company’s business of pig farming has spread to 217 counties/districts in 103 cities in 24 provinces/autonomous with relevant national laws and regulations.regions of China. Through industry empowerment farmers have become senior pig raising technicians. Currently
Muyuan has over 70000 senior pig raising technicians.Salary and welfare system
We strictly abide by the Labor Law of the People’s Republic of China Labor Contract Law of the People’s Republic
of China Social Insurance Law of the People’s Republic of China Work Safety Law of the People’s Republic of China
Industry empowerment enables farmers to become senior pig raising technicians and other relevant laws and regulations sign labor contracts with employees and pay the five insurances and housing
fund continuously improve the human resource management system and effectively protect the rights and interests of
employees. On the basis of safeguarding the basic rights and interests of our employees we continue to create a com-
Bian Dongzhen the breeding farm manager in Zone 2 Farm 11 of the Laohekou Muyuan. fortable working and living environment for our employees and provide them with good welfare benefits. At the same“I joined Muyuan in 2016 which gave me the opportunity to work near my home as a pig farmer. With the time we have been constantly optimizing and improving our staff welfare system in terms of “clothing food housingCompany’s training I learned how to raise pigs and how to do management. Now I have earned more money transportation health and affection” in line with market standards.and my life is better as well. ”Bian Dongzhen said. Muyuan shares the fruits of development with its employees under these salary distribution principles: whoever cre-
Without any further education since graduating from junior high school Bian had a lot of deep feelings about ates value gets rewards; whoever creates value first will be rewarded first; and those who create more value will get
transforming from a farmer to a technician a section manager and eventually a farm manager. Speaking of more rewards. Muyuan implements a comprehensive remuneration system. Employees can gain comprehensive remu-management she said “Human efficiency management is a major item to reduce costs. First everyone can get neration through extraordinary remuneration equity asset allocation promotion learning honor and welfare. In thea high salary by improving their service quality. The second is to help employees set goals and build up confi- process of remuneration assessment and Incentive we objectively evaluate employees’ contributions to the Companydence. ” based on the result oriented principle of “profit - sustainable profitability - long-lasting enterprise”. In 2022 the av-
erage annual salary per employee of Muyuan was 94000 yuan. By the end of 2022 Muyuan had implemented 3 em-
Under her efficient management all the ployee stock ownership plans and 3 restricted stock incentive plans with a total of more than 13000 persons holding
employees in her farm worked together to shares.plan for visions and set goals and achieved Salary and welfare system of Muyuan
satisfactory results. In 2022 her team gained
a profit of 28.27 million yuan and she was Comprehensive payawarded the title of “Excellent Farm Manag-er” in the Group. Explicit remuneration Potential remuneration Honor
In Muyuan there are many people like Bian
Trust and ap-
Dongzhen. Thanks to the opportunities from Extraordinary + Equity + + Learning and remuneration pointment of im-incentives Welfare Opportunities + Promotion + + Honor
the Company’s development and the talent portant position
cultivation system countless farmers have Salary Performance rewards Loyalty+achieve- Five insur- Learning: Experience Encourage and Commen-
transformed into professional and senior pig ments ances and one opportunities recognition dation
raising technicians taking on management fund Exchange in Equity allocation the industry Appointment Selection for Honor
positions and realizing their life value. Housing system employment
Bian Dongzhen delivering employee empowerment session Equity rewards Outside study Title... Leapfrog
Training promotion
Opportunity:
Participation
in key work
8283
Individual innovation rewards
Business performance rewards
Group profit rewards
Grade salary
Level salarySociety
We provide commercial insurance services for employees to improve their welfare. The insurance covers accidental In 2022 78000 employees underwent health examinations. At the same time the Company collaborated with medical
death/disability insurance supplementary hospitalization insurance health insurance that covers 36 categories of ma- institutions to provide health service. With 1370 employees participating in free health clinics and health examina-
jor illnesses death from disease/total disability insurance etc. In 2022 a total of 16335 people were insured and 498 tions their physical and mental health is ensured.claims were settled amounting to 6003100 yuan.Unblocking employee communication channels
We respect every employee’s opinions and suggestions establish multiple communication channels listen to employ-
ees’ voices through various forms of feedback and help them solve problems. In the design of communication chan-
nels the Company has conducted sufficient negotiations with employees and the trade union to ensure that employees’
demands and opinions are unobstructed. To protect the rights and interests of employees we set up anonymous and
real-name feedback forms so that employees can feedback their opinions and suggestions without any worries. The
feedback can include but is not limited to: salary welfare catering services system operation personnel movements
etc. The feedback from employees will be analyzed and screened by a dedicated person. By integrating resources and
promptly handling issues the communication between the Company and its employees is strengthened jointly build-
ing a harmonious work environment.Employee complaint channels:
Phone call Text message E-mail Staff congress
Employee health examination
Work meeting Employee sympo- One-on-one inter- WeChat/ Intelligent
sium view Muyuan-DingTalk
Daily communi- Cultural and sports
Team building cation activities
Trade union After receiving feedback on employee issues the contact person will communicate with the
membership rate employee’s immediate supervisor within the specified time to understand the actual situa-
tion and prioritize resolving employee issues within the department. If the issue cannot be
100% solved internally the immediate supervisor shall report to the Company’s labor relations
person in charge establish a temporary problem handling committee assist in problem han-
dling and protect the legitimate rights and interests of the employee.Employee care
Employee physical examination
Muyuan attaches great importance to the physical and mental health of employees and takes good care of them
through activities such as health examinations and health services. Employee health examination
84 85Society
Female employee care every employee and every family feel happy and enjoy a happy life in Muyuan. This is a provision in the Basic Law
of Muyuan.We always respect and care for women through activities such as female health examinations and vaccinations. In Muyuan there are 11395 couples. These couples serve as an example for each other and share the same ideals at
work. In life they care for each other respect each other support each other and improve together. At the end of each
year Muyuan sets up a “Model Couple” award in the commendation conference. In 2022 Muyuan commended 499
Female exclusive physical examination “model couples” in the commendation conference at the end of the year.Every year for the “Women’s Day” on March 8th Muyuan organizes women’s exclusive physical examination
activities to care for all female employees. The examination includes color Doppler ultrasound traditional Chi- Model Couple - Li Yinghui and Kan Yanling
nese medicine internal medicine surgery gynecology tests etc.In 2016 Muyuan actively responded to the national call to expand pig farming to Northeast China. Taking
the business needs into consideration Li Yinghui went to Northeast China to work hard in the hard condition.Finally by the end of 2017 Lanxi Farm 1 was successfully put into operation. In November of the same year
his wife Kan Yanling also came to Lanxi Farm 1. Starting from zero Kan Yanling led her team to purchase and
learn professional books for swine disease and pig farm management to improve their professional level. The
couple have been constantly moving forward in learning and practice constantly breaking through barriers and
going beyond themselves.Over the six years they have witnessed each other’s
growth and also the development and expansion of
Heilongjiang Muyuan. Now Li Yinghui serves as
the Production Director of Heilongjiang Muyuan
Female health examination and Kan Yanling serves as the Head of Veterinarian
of Heilongjiang Muyuan. With their joint efforts 3.2
million pigs were produced in Heilongjiang Muyuan
in 2022 which provided jobs for over 7000 people.Photo of Model Couple - Li Yinghui and Kan Yanling
Building happy family for employees
The “Mother-Child Project” is an important component of Company culture where “mother” represents parents and
“child” represents children. Following the concept of making every family and every child happy Muyuan has de- Enrichment of culture and entertainment
veloped the Mother-Child Project into a platform where children in Muyuan can perform experience grow gain a
positive life attitude improve their learning thinking and mental models and create a better future through their own
efforts. Parents can also exchange and learn good education methods on the platform correctly perceive their own in- In order to enrich employees’ life practice and spread Muyuan culture and make employees work and live happily
fluence on their children’s growth and then set an example by constantly developing themselves to set a good exam- we have carried out diversified cultural and sports activities.ple for their children so that parents and children can progress and grow together.Assistance to employees in need
Muyuan holds two Mother-Child Project events annually including the Mother-Child meetings employee children’s
summer camp interest courses and Mother-Child gifts. Under the guidance of the “Mother-Child Project” culture
Muyuan’s parents and children care for each other share with each other set an example for each other and grow to- Muyuan regards employees as family members continuously optimizes employee assistance plans and continues to
gether. At present there are over 60000 employees’ children growing up healthily and happily in Muyuan Paradise. carry out assistance activities for employees in need. In 2022 the total amount of assistance for employees in need
was 31.438 million yuan.Treat employees as family and help them grow. Build career platforms to help them fulfill their values in life; make
86 87Society
In 2022 192.36 comprehensively supervise the safety production of the Company. At the same time in
million the development implementation and evaluation of the safety production management yuan was system we actively communicate with employees through various forms of employee
invested in safety pro- communication channels and pay particular attention to the opinions and demands of
duction. front-line employees.The Company has set up a sophisticated safety production management system with
12 major sections and 35 existing safety management systems mainly including “RiskAccident Management and Assessment System” “Safety Inspection and Hidden Dan-ger Screening and Management System” “Safety Management System of High RiskOperations” “Safety Management System for Special Equipment” “Safety Manage-ment System for Dust Ignition-proof in Feed Mill” etc. In 2023 the Company plans to
Staff spring outing activity Winter Solstice Dumpling Making Activity revise and improve relevant work processes and systems such as safety education and
training limited space management operation procedures of different positions of each
business department safety management of external construction in feed mill safety
management of silo operation safety management of construction fire safety respon-
sibility system risk accident management and assessment system of Feed Production
Department etc. so as to continuously improve the safety production responsibility
management mechanism of the Company.Management policy
* People-oriented safety first prevention as the core comprehensive management
Management philosophy
* Safety is achieved through management. All safety accidents can be prevented and all potential safety haz-
ards can be controlled
Chinese Valentine’s Day activities for young staff
* Safety comes from design quality responsibility and capability
Employee occupational health and safety * Zero tolerance for all violations of rules and regulations
Safety production management system
Management principles
Muyuan always attaches great importance to safety production. We have established a three-level safety management
structure of “headquarter-region-subsidiary”. Each business department has a safety management section which is
responsible for the safety management of the department. At the regional level each regional manager serves as the * Each department is the first responsible party for safety management and must manage safety while man-
director of safety committee and the safety committee member group which is composed of the head of each de- aging business
partment and the full-time responsible persons of safety management of the regional feed mills is fully responsible * Each department takes their own safety production responsibility: Eliminate hidden dangers from the
for regional safety production. At the subsidiary level the subsidiary managers serve as the directors of the safety source of process and prevent accidents
committee and the safety committee member group is composed of the head of each department. Full-time or part- * Third-party supervision by the Safety Inspection Office: Strengthen management and assessment all de-
time safety personnel shall be assigned in key departments such as production feed environmental protection etc. partments to build a safety management system and realize closed-loop safety management
to consolidate the responsibility of safety production at all levels. Muyuan also sets up safety inspection office to
88 89Society
Promoting Community Development
Management requirements
* Managers at all levels are directly responsible for safety within their business scope
* All employees must be involved in safety management and adhere to the whole process and all-round safe- Strengthening Community Communication
ty management
* Employees must receive strict safety training before they are allowed to work Muyuan is committed to strengthening communication
with stakeholders by actively communicating with local
* Management cadres at all levels must conduct safety inspections and all hidden dangers discovered must residents establishing a good community interaction
be rectified in a timely manner mechanism organizing regular communication and ex-
* All safety incidents must be reported analyzed and handled in a timely manner change to respond to community concerns in a timely
manner fully identifying and assessing the impact of the
production and operation of the Company on the com-
Occupational health management measures munity. Muyuan respects the cultural customs and norms Disclosure of communication methods to maintain relations with
of the community where it operates and seeks to mini- community
mize the impact on the local environment ecology and
Muyuan adheres to the philosophy of “people-oriented” and attaches great importance to the occupational health man- society.agement of employees. We strictly abide by the Law of the PRC on Prevention and Control of Occupational Diseases
the Law of PRC on Work Safety and other relevant laws and regulations and have formulated and issued the Man- The Company has set up convenient service boards at the entrance of each pig farm (including the name position and
agement System for High-Risk Operations the Management System for Labor Protective Supplies and other relevant contact details of the contact person) and assigned specialized persons responsible for following up the demands of
standardized regulations and systems. local residents. Community residents with complaints or requests can contact the relevant personnel by phone and
Muyuan promises to discuss and reply in a timely manner after receiving the feedback.Management of labor protective materials Employee physical examination
Reciprocal assistance between villages and the Company
We strictly implement the Management System for We actively organize physical examination for
Labor Protective Supplies and provide employees front-line employees and managers track and In the early stage of promoting crop-livestock cycle in Zhuxi village the villagers did not understand and did
with complete labor protective supplies according manage employees with health abnormalities and not accept the project. The management team of Dengzhou Muyuan No. 1 Farm actively adjusted their work
to business types. For the labor protective materials provide medical services for them to safeguard strategy arranged personnels to make door-to-door visits to actually understand the villagers’ concerns and
used in all kinds of high-risk operations we check their health. then explained in detail the value of crop-livestock cycle and biogas slurry in a positive manner. In the end they
and make up for the missed ones every month and gained recognition from the villagers and built a healthy and harmonious relationship between the villages and
verify and correct the invalidated damaged or mis- the Company. From August 2021 to June 2022 the new biogas slurry pipeline network of Zhuxi Village covered
configured materials to ensure the operation safety of 1000 mu (around 66.67 hm2) of farmland. In May 2022 the repaired old biogas slurry pipe network covered
front-line employees. 200 mu (around 13.33 hm2) of farmland.A farm improves the ecology stimulates the economy
Occupational health and safety training and investment performance growth and benefits residents of its surrounding area.We communicate regularly on a monthly basis and
Category Unit 2022 2021 help people in the surrounding communities through
everyday activities such as agricultural technical ser-
Investment in occupational health and safety training 1000 yuan 12532 1290 vices road construction and well drilling poverty
alleviation and aid to farmers and agriculture flood
Total duration of occupational health and safety and drought relief and donations to education thus
Hour 43.5 15
training contributing to the rural revitalization.Number of participants in occupational health and
Person 878000 749600 Zhuxi Village presented a thank-you flag to
safety training Dengzhou Muyuan
90 91Society
Boosting Community Development Providing employment
Helping farmers to increase income We strongly support and promote local employment by recruiting employees in the locations of our subsidiaries to
We always pay attention to aid agricultural development through the innovation of environmental protection technol- take in the local labor force. By the end of 2022 we had taken 120057 local workers on board with a local employ-
ogy to promote a circular economy model that integrates farming and animal husbandry as well as the crop-livestock ment rate of 85.51%. Meanwhile we have made efforts in our whole industry chain integrating feed pig breeding pig
cycle as a whole. With pig farms as center we rely on manure to provide aid and services to farmers and agriculture raising and pig slaughtering directly creating more than 140000 jobs and contributing to common prosperity.help them apply fertilizer scientifically improve the soil fertility of surrounding land reduce the application of chem-
ical fertilizers and help farmers reduce investment and increase income. In 2022 we provided 9680 agricultural
technical services serving 11321 villages and training 277600 farmers. As of the end of the report period we had Local procurement
provided 24917 agricultural technical services and trained 849100 farmers in total.We adhere to the procurement concept of justice fairness openness and transparency to expand the procurement of
Muyuan agronomists actively serve local farmers unprocessed grains locally and contribute to community economic development. In 2022 the Company procured a
total of 16.0712 million tonnes of local unprocessed grains with a procurement value of 45.874 billion yuan.Zhang Lijuan with a Master’s degree from Huazhong Agricultural University has been engaged in exploring
the agricultural circular economy model opening up the technical path for crop resource utilization and other
aspects of work ever since she joined Muyuan in 2020. Now local farmers around Shangcai Muyuan in Zhu-
madian Henan Province see her as a “senior consultant” and will turn to her for any agricultural problems. Contribution to Community Infrastructure and Cultural Construction
In December 2021 Zhang Xueling a local farmer living near Shangcai No. 13 Farm found that some of the
wheat in her farmland was growing abnormally yellowing and showing other symptoms. She was very worried
about the next year’s yield. It suddenly struck her that the agronomists of Muyaun had talked about relevant We always adhere to the core value of “creating value and serving society” contribute to community infrastructure
knowledge in the training class of agricultural technical services last month and she contacted Zhang Lijuan. and cultural construction realize the co-construction and sharing between the Company and communities. We seek to
Through on-site inspection and sampling analysis Lijuan determined the cause of the yellowing of wheat and provide convenience for community residents enrich community cultural life and build a harmonious and warm en-
developed precise solutions and very soon the wheat was restored to normal growth vigor and started growing vironment.healthily again. After this incident Zhang Xueling trusted Muyuan agronomists more and often came to Lijuan
to discuss planting management such as biogas slurry management during the overwintering period spraying
for disease prevention during the early flowering season of wheat and prevention and control of pest disease Contribution to community infrastructure
and weed.Zhang Xueling farms more than 200 mu (around 13.33 hm2) of farmland. In June 2022 the yield per mu for Adhering to the principle of “benefiting the locality where we are” Muyuan continues to build the infrastructure for
wheat was 1200 kilograms with an increase of 38000 yuan income by reduced investment. In October the the benefit of the local people such as road construction landscape projects plaza construction street light projects
yield per mu for corn was 1210 kilograms with an increase of 35000 yuan income by reduced investment. and water supply projects. As of the end of 2022 Muyuan had donated 99.51 million yuan to these projects benefiting
The wheat and corn made a profit rise of 73000 yuan by reduced investment in the whole year. 1.21 million people from 320000 households in 1474 villages creating a beautiful safe and convenient living envi-Zhang Xueling said happily: “Using Muyuan biogas slurry not only reduced inputs of fertilizer and seeds but ronment for villagers and greatly improving the quality of life for local residents.also saved water. Meanwhile Muyuan follows certain standards so their products will only be good for thecrop.” She continued with a smile “In the future wewill stick to Muyuan biogas slurry. It saves fertilizerand improves production such a good thing why not?”
Her relatives and friends also followed her in using
Muyuan biogas slurry.Muyuan helps farmers increase income through
Crop-Livestock Cycle. There are many excellent
agronomists like Zhang Lijuan in Muyuan. They work
in the field to do experiments and promote technology
application. They are rooted in rural areas breaking the
traditional local planting model and guiding farmers
to improve yields and increase income. They increase
yield by working on the farmland promote income
increase with science knowledge and contribute to the Muyuan agronomist Zhang Lijuan demonstrated
national food security. the use of biogas slurry Street light project Contribution to community infrastructure
92 93Society
Contribution to community cultural construction Education Support
We always attach importance to community cultural construction and provide continuous support in
carrying out community recreational and sports activities preserving history and culture with local Muyuan always sticks to the social responsibility view of “do what you know is right to benefit society”
characteristics and developing culture with ethnic characteristics. By the end of 2022 Muyuan had and proactively engages in public welfare projects to promote education and social development.invested a total of 25.45 million yuan to support community cultural construction benefiting 1.12 million
people from 300000 households in 700 villages.Education Assistance Program
Muyuan has been deeply engaged in the field of education charity for 20 years since 2003 launching a
series of public welfare projects called the Muyuan “Ju’ai Education Assistance”. By the end of 2022 “Ju’aiEducation Assistance” public welfare projects had donated 270 million yuan in total.Ju’ai Education Assistance Project - Spring Rain ProgramSince 2003 we have continued to carry out the “Ju’ai Education Assistance Project - Spring RainProgram”. Since then we have donated more than 90 million yuan awarded 26000 outstanding educators
and benefited 519 schools in 38 counties (districts) in 12 provinces. “The Spring Rain Program” not only
promotes the good moral of respecting teachers and valuing education creates a good social atmosphere
Liangzhou Muyuan supported Fengle town in organizing Shehuo and Chinese New Year celebration. but also raises the enthusiasm of teachers in teaching and improves rural education quality. At the same
time it attracts more social forces to support the development of rural education.Naiman Muyuan sponsored Xinshulin village’s cultural activities on International Women’s Day Henan Neixiang Muyuan Ju’ai Education Assistance - Spring Rain Program Ceremony
94 95Society
Ju’ai Education Assistance Project - Golden Autumn Program
Since 2005 we have carried out “Ju’ai Education Assistance Project - Golden Autumn Program” every
year aiming at rewarding outstanding college students promoting education development with awards
supporting education development cultivating outstanding talents for society and promoting social
progress.The Program has been carried out for 18 years and has benefited more than 60000 outstanding college
students with a total reward value of 163 million yuan. In 2022 the project covered 179 counties (districts)
in 87 cities in 23 provinces benefiting 16907 students with a total reward value of 51.79 million yuan.Guangxi Zhuang Autonomous Region Wuming Muyuan Ju’ai Education Assistance - Spring Seedling Program Ceremony
Ju’ai Education Assistance Project - Morning Dew Program
Together with Ju’ai we launched “Ju’ai Education Assistance Project - Morning Dew Program” aiming
at ensuring safety of drinking water for primary school students and improving the drinking water
environment of schools in rural areas through donating water purifiers to schools in need . While donating
water purifiers volunteers of Ju’ai went into the classroom to teach students about clean drinking water and
water conservation conduct small experiments on water purification and help students to develop good
habits of drinking water and water conservation.Henan Huaxian Muyuan Ju’ai Education Assistance - Golden Autumn Program Ceremony
Ju’ai Education Assistance Project - Spring Seedling ProgramSince 2017 we have continued to carry out the “Ju’ai Education Assistance Project - Spring SeedlingProgram” aiming at improving rural education conditions supporting the development of education in
communities and villages and helping rural children grow by donating school bags stationery and other
necessities to children in rural areas.Since the launch of the program more than 540000 school bags have been distributed to school children in
2935 communities and villages of 159 counties in 22 provinces. In 2022 46622 school bags were handed
out to students in 54 counties in 15 provinces. Meanwhile more than 4100 volunteers have participated in
the project carrying out volunteer activities and passing on love and responsibility. Ju’ai Education Assistance - Ceremony site of Morning Dew Program
96 97Society
Poverty Reduction and Sustainable Development Demonstration Project in Neixiang County Volunteer Services
The Poverty Reduction and Sustainable Development Demonstration Project in Neixiang County is the
first county-based sustainable development project of United Nations Development Program (UNDP) in Muyuan has established a volunteer team to recruit employees and college students to actively participate
China combining the essence of the 19th National Congress and the UN Sustainable Development Goals in volunteer activities and serve and contribute to society. Up to 2022 Muyuan volunteer team had 9702
(SDGs) Framework. By mainstreaming the SDGs into the development strategy of the Neixiang County registered employee volunteers. They have conducted services in 23 provinces in China with 53361 hours
it enhances the capacity of the local government to apply the SDGs Framework to guide the resource of volunteer public welfare service.planning supports the social and economic sustainable development improves people’s livelihoods in
Neixiang County promotes “rejuvenation of rural areas” and engages more key stakeholders in the process
of addressing environmental challenges rural rejuvenation public goods and education inequality climate Activities of Double Ninth Festival
change conserving biodiversity and promoting sustainable development.In 2022 the Muyuan Education Foundation UNDP and SDGs Workshop jointly carried out activities to
build capacity of sustainable development of students and teachers covering more than 400 young teachers On the Double Ninth Fes-
and 5000 students to enhance awareness recognition and international perspective of the SDGs among tival of 2022 the Muyuan
teachers and students in counties and townships . trade union visited the
Fuxing nursing home in
SDGs and our lives: marching together towards a sustainable future Mashankou town Neix-
iang county as well as the
Ensuring inclusive and equitable quality education is an important part of SDG 4. In order to promote Jutan nursing home to
the development of community education Muyuan Education Foundation together with UNDP China deliver daily necessaries
International Center for Economic and Technical Exchanges and People’s Government of Neixiang and gifts to the residents
County conducted a children-oriented SDGs workshop at local village primary schools in Neixiang on also to get to know their
physical food clothing
June 15 2022. In the workshop teachers explained housing transportation
and shared specific SDGs such as climate change and other conditions and
clean water and sanitation and drew pictures celebrated the Double
with children. This activity helps to bridge the Ninth Festival with them.gap between urban and rural education improve
the international perspective and comprehensive
quality of children in the county and bring new
ideas and vitality to the children in the county Muyuan employees talked closely with the elderly
and their school family and community together
SDGs workshop
marching towards a sustainable future!
Organizing Voluntary Blood Donation Activities to Actively Fulfill Social Responsibilities
Qin Yinglin Chairman of Muyuan donated 1 billion yuan to support Henan Agricultural University
In order to promote the spirit of selfless ded-
ication and being ready to help others we
On July 6 2022 Qin Yinglin Chairman of Muyuan make active arrangements for employees to
donated 1 billion yuan to Henan Agricultural University take part in voluntary blood donation activi-
to build the HAU-Muyuan Joint Livestock Industry ties. In 2022 a total of 462 employees donat-
Research Institute which will be used to enhance the ed blood which led to the donation of about
development of the whole pig industry chain promote 172900 mL of blood in total. Gao Zhifei an
information technology artificial intelligence and employee of the Company was awarded as
industrial Internet development of the upstream and an Advanced Individual in blood donation in
downstream of pork industry chain and help develop Nanyang City for his participation in blood
Henan Agricultural University into a world-class Qin Yinglin Chairman of Muyuan donated 1 billion donation for three consecutive years. Muyuan organized voluntary blood donation activities for
agricultural university. yuan to Henan Agricultural University employees to join in
98 99Performance Report
Performance Report Employment situation
Index Unit 2022 2021 2020
Financial performance Total number of employees Person 140403 137520 121995
Unit 2022 2021 2020 Total number of males Person 108581 104422 91358
Operating revenue 1 million yuan 124826 78890 56277 Male ratio % 77.34 75.93 74.89
Net profit 1 million yuan 14933 7639 30375 Total number of women Person 31822 33098 30637
Total assets 1 million yuan 192948 177266 122627 Female ratio % 22.66 24.07 25.11
Total output of 1000 heads 61201 40263 18115 Male under 30 years old Person 34349 / /market pigs
Male under 30 years old % 24.46 / /
Dividend payout 1 million yuan 1488 5661 1381
Female under 30 years old Person 10680 / /
Energy consumption data Female under 30 years old % 7.61 / /
Index Unit 2022 2021 2020 Male aged 30-50 Person 67908 / /
Diesel oil Liter 81893303.65 70072490.09 /
Male aged 30-50 % 48.37 / /
Gasoline Liter 12061076.15 18417548.36 12442810.76
Female aged 30-50 Person 21141 / /
Gas m3 218839075.60 129469790.60 63557681.01
Female aged 30-50 % 15.06 / /
Electricity MW·h 5142753.02 4328154.29 1727664.52
Male over 50 years old Person 6324 / /
Total energy Tons of standard
consumption coal 1010437.76 793881.24 302323.91 Male over 50 years old % 4.5 / /
Female over 50 years old Person 1 / /
Greenhouse gas emission data
Female over 50 years old % 0.001 / /
Accounting scope 2022 2021 2020
Scope 1 Emissions (1000 tCO2e) 3894.5 3076.5 1496.8
Employment compliance
Scope 2 Emissions (1000 tCO2e) 3405.6 2835.4 1097.0
Carbon emission reduction (1000 Index Unit 2022 2021 2020
tCO2e) 3197.2 2510.6 898.8 Labor contract signing rate % 100 100 100
Total carbon emissions 410.29 340.13 169.51 Trade union membership % 100 100 100
rate
100 101Performance Report
Local Employment Index Table
Index Unit 2022 2021 2020
Employee’s registered ESG Report
residence is in the Shenzhen Stock Exchange Guidelines for Self Regulatory Supervision of Listed Companies No. 1 -
province where the Person 120057 103002 / Standardized Operation of Companies Listed on the Main Board (2022)
company operates
Percentage of local Terms and Information Disclosure Sections in the Report
employees % 85.51 74.9 / 8.1 Overview MESSAGE FROM THE CHAIRMAN
Message from the Chairman; Company Profile;
Employee training 8.2 Business Principles Operation with Integrity and Compliance; Business
Performance; Optimizing Corporate Governance
Index Unit 2022 2021 2020 ESG Management Structure; Strategy of ESG
8.3 Social Responsibility Strategic Planning and
Training expenses 1 million yuan 500 128 / Management; Muyuan’s ESG Indicators; Assessment of Working Mechanism
Material Topics; Development of Muyuan’s ESG
Per capita training Hour 100 75 / 8.4 Disclosure of Social Responsibility Reports /duration
8.5 Protection of Employee Rights and Interests Employee Welfare
Training coverage % 100 100 / Comply with Environmental Protection Continuous Improvement in Environmental ratio 8.6: (I) Laws Regulations and Industry Management; Biodiversity and Land Resource
Standards Utilization
Compliance management 8.6: (II) Environmental Protection Plan /
Index Unit 2022 2021 2020 8.6: (III) Use of Natural Resource Biodiversity and Land Resource Utilization
Contract Compliance 8.6: (IV) Pollutant Disposal Emissions Management
Review Rate % 100 100 100 Pollution Prevention and Control 8.6: (V) Emissions Management
Facilities
Occupational health and manufacturing safety training Payment of Environmental Protection 8.6: (VI) /
Related Taxes and Fees
Unit 2022 2021 2020 Creating Value Together and Sharing the Future; Win-
8.6: (VII) Security of Supply Chain Environment
Investment in win Development with Value Chain Partners
occupational health 1000 yuan 12532 1920 / Other Environmental Protection
and safety training 8.6: (VIII) Biodiversity and Land Resource UtilizationResponsibilities
Number of Environmental Protection Policies Water Resources Management; Carbon Emissions and 8.7: (I)
participants in Objectives and Achievements Addressing Climate Change
occupational health Person 878000 749600 / Water Resources Management; Carbon Emissions and
and safety training 8.7: (II) Annual Total Resource Consumption Addressing Climate Change; Performance Report
Total duration of Investment and Technology Development Continuous Improvement in Environmental 8.7: (III)
occupational health Hour 43.5 15 / in Environmental Protection Management; Crop-Livestock Cycle
and safety training 8.7: (IV) Emitted Pollutants Management Emissions Management
Investment in Construction and Operation of
manufacturing safety 1000 yuan 192360 450000 / 8.7: (V) Biodiversity and Land Resource UtilizationEnvironmental Protection Facilities
102 103Performance Report
Terms and Information Disclosure Sections in the Report GRI Standards Disclosed Items Sections in the Report
Waste Treatment and Disposal; Recycling 2-6 Activities value chain and other Win-Win Development with Value Chain Partners;
8.7: (VI) and Comprehensive Utilization of Waste Comprehensive Control of Ecological Impacts business relationships Creating a Win-win Industrial Ecosystem
Products 2-7 Employees Employee Welfare
8.7: (VII) Voluntary Agreement Signed with / 2-8 Workers who are not employees Win-Win Development with Value Chain Partners; Environmental Protection Department Creating a Win-win Industrial Ecosystem
8.7: (VIII) Rewards Received from Environmental / 2-9 Governance structure and composition ESG Management StructureProtection Department
2-10 Nomination and selection of the
8.7: (IX) Other Voluntary Disclosure Information / highest governance body Optimizing Corporate Governance
8.8 Implementation of Environmental Protection
Policies and Corrective Measures / 2-11 Chair of the highest governance body
Message from the Chairman; Optimizing
Corporate Governance
8.9 Environmental Information Disclosure / 2-12 Role of the highest governance body Message from the Chairman; ESG Management
Product Safety Laws Regulations and in overseeing the management of impacts Structure8.10: (I) Industry Standards Product Responsibility Management 2-13 Delegation of responsibility for
managing impacts ESG Management Structure
8.10: (II) Production Environment and Process Product Responsibility Management
2-14 Role of the highest governance body
Product Quality and Safety Assurance in sustainability reporting ESG Management Structure8.10: (III) Mechanism and Accident Response Plan Ensuring Animal Welfare
2-15 Conflict of interest /
8.10: (IV) Other Production and Product Safety Ensuring Animal Welfare; Creating a Win-win Industrial Responsibilities Ecosystem 2-16 Communication of critical concerns ESG Management Structure
8.11: (I) Employee Management System and Scientific and Technological Innovation; Employee
2-17 Collective knowledge of the highest /
Measures for Handling Violations Welfare GRI 2: General governance body
Prevention of Occupational Hazards and Disclosures 2-18 Evaluation of the performance of the 8.11: (II) Supporting Safety Measures Employee Welfare highest governance body
Optimizing Corporate Governance
8.11: (III) Employee Training Employee Welfare 2-19 Remuneration policies Optimizing Corporate Governance; Benefiting Employees
8.11: (IV) Other Responsibilities for Protecting the Rights and Interests of Employees Employee Welfare 2-20 Process to determine remuneration Optimizing Corporate Governance; Benefiting Employees
8.12 Ethical Norms in Science Ensuring Animal Welfare 2-21 Annual total compensation ratio /
8.13 Content of Social Responsibility Report About the Report 2-22 Statement on sustainable
development strategy Strategy of ESG Management
GRI Index 2-23 Policy commitments Creating Value Together and Sharing the Future; Benefiting Employees
GRI Standards Disclosed Items Sections in the Report 2-24 Embedding policy commitments Operation with integrity and compliance
General Disclosures
2-25 Processes to remediate negative Operational Integrity and Compliance; Creating
2-1 Organizational details Company Profile impacts Value Together and Sharing the Future; Benefiting Employees
2-2 Entities included in the organization’s
sustainability reporting About the Report 2-26 Mechanisms for seeking advice and Assessment of Material Topics; Optimizing
GRI 2: General raising concerns Corporate Governance; Benefiting Employees
Disclosures 2-3 Reporting period frequency and contact point About the Report 2-27 Compliance with laws and Optimizing Corporate Governance
2-4 Restatements of information About the Report regulations
2-5 External assurance Optimizing Corporate Governance 2-28 Membership association Awards and Recognition in 2022
104 105Performance Report
GRI Standards Disclosed Items Sections in the Report GRI Standards Disclosed Items Sections in the Report
GRI 2: General 2-29 Approach to stakeholder engagement Muyuan’s ESG Indicators 205-1 Operations assessed for risks related Operation with integrity and compliance
Disclosures to corruption2-30 Collective bargaining agreements Employee Welfare
GRI 205: Anti- 205-2 Communication and training about
GRI 3: Material 3-1 Process to determine material topics Muyuan’s ESG Indicators corruption 2016 anti-corruption policies and procedures Operation with integrity and compliance
Topics 2021 3-2 List of material topics Muyuan’s ESG Indicators 205-3 Confirmed incidents of corruption
and actions taken Operation with integrity and complianceEconomic Performance
GRI 3: Material Muyuan ESG Indicators; Carbon Emissions
Anti-competitive Behavior
Topics 2021 3-3 Management of material topics and Addressing Climate Change; Benefiting GRI 3: Material Employees Topics 2021 3-3 Management of material topics
Operational Integrity and Compliance; Creating
Value Together and Sharing the Future
201-1 Direct economic value generated GRI 206: Anti- 206-1 Legal actions for anti-competitive
and distributed About Muyuan competitive behavior anti-trust and monopoly Operational Integrity and Compliance; Creating
201-2 Financial implications and other risks Behavior 2016 practices
Value Together and Sharing the Future
GRI 201:
and opportunities due to climate change Carbon Emissions and Addressing Climate ChangeEconomic Tax
Performance 201-3 Defined benefit plan obligations and
2016 GRI 3: Material other retirement plans Employee Welfare Topics 2021 3-3 Management of material topics /
201-4 Financial assistance received from 207-1 Approach to tax /
government /
Market Presence 207-2 Tax governance control and risk
management /
GRI 3: Material GRI 207: Tax
Topics 2021 3-3 Management of material topics Employee Welfare 2019 207-3 Stakeholder engagement and
management of concerns related to tax /
202-1 Ratios of standard entry level wage
GRI 202: by gender compared to local minimum wage / 207-4 Country-by-country reporting /
Market
Presence 2016 202-2 Proportion of senior management
hired from the local community Performance Report Materials
Indirect Economic Impact GRI 3: Material
Topics 2021 3-3 Management of material topics Creating Value Together and Sharing the Future
GRI 3: Material Promoting Community Development; Creating
Topics 2021 3-3 Management of material topics Value Together and Sharing the Future 301-1 Materials used by weight or volume Creating Value Together and Sharing the Future
203-1 Infrastructure investments and
GRI 203: services supported Promoting Community Development
GRI 301: 301-2 Recycled input materials used Creating Value Together and Sharing the Future
Materials 2016
Indirect 301-3 Reclaimed products and their
Economic 203-2 Significant indirect economic Creating Value Together and Sharing the Future; packaging materials
Creating Value Together and Sharing the Future
Impacts 2016 impacts Continuous Improvement in Environmental Management; Creating a Win-win Industrial Ecosystem Energy
Procurement Practices GRI 3: Material
Topics 2021 3-3 Management of material topics Carbon Emissions and Addressing Climate Change
GRI 3: Material 3-3 Management of material topics Creating Value Together and Sharing the Future; Topics 2021 Creating a Win-win Industrial Ecosystem 302-1 Energy consumption within the
organization Carbon Emissions and Addressing Climate Change
GRI 204:
Procurement 204-1 Proportion of spending on local Creating Value Together and Sharing the Future; 302-2 Energy consumption outside of the
Practices 2016 suppliers Creating a Win-win Industrial Ecosystem GRI 302: organization
/
Energy 2016
Anti-corruption 302-3 Energy intensity Carbon Emissions and Addressing Climate Change
GRI 3: Material
Topics 2021 3-3 Management of material topics Operation with integrity and compliance 302-4 Reduction of energy consumption Carbon Emissions and Addressing Climate Change
106 107Performance Report
GRI Standards Disclosed Items Sections in the Report GRI Standards Disclosed Items Sections in the Report
GRI 302: 302-5 Reductions in energy requirements Carbon Emissions and Addressing Climate Change GRI 305:
305-7 Nitrogen oxides (NOx) sulfur
Energy 2016 of products and services Emissions 2016 oxides (SOx) and other significant air Crop-Livestock Cycleemissions
Water and Effluents
Waste
GRI 3: Material
Topics 2021 3-3 Management of material topics Water Resources Management GRI 3: Material
Topics 2021 3-3 Management of material topics
Comprehensive Management and Control of
Ecological Impacts and Emissions Management
303-1 Interactions with water as a shared
resource Water Resources Management 306-1 Waste generation and significant Comprehensive Management and Control of
waste-related impacts Ecological Impacts and Emissions Management
303-2 Management of water discharge-
GRI 303: Water related impacts Water Resources Management 306-2 Management of significant waste- Comprehensive Management and Control of
and Effluents related impacts Ecological Impacts and Emissions Management
2018 303-3 Water withdrawal Water Resources Management GRI 306: Waste Comprehensive Management and Control of
303-4 Water discharge Water Resources Management 2020
306-3 Waste generated Ecological Impacts and Emissions Management
306-4 Waste diverted from disposal Comprehensive Management and Control of 303-5 Water consumption Water Resources Management Ecological Impacts and Emissions Management
Biodiversity
306-5 Waste directed to disposal Continuous Improvement in Environmental
GRI 3: Material Management and Emissions Management
Topics 2021 3-3 Management of material topics Biodiversity and Land Resource Utilization Supplier Environmental Assessment
304-1 Operational sites owned leased GRI 3: Material
managed in or adjacent to protected 3-3 Management of material topics Creating Value Together and Sharing the Future
areas and areas of high biodiversity value Biodiversity and Land Resource Utilization
Topics 2021
outside protected areas GRI 308: 308-1 New suppliers that were screened Supplier using environmental criteria Creating Value Together and Sharing the Future
GRI 304: 304-2 Significant impacts of activities Environmental
Biodiversity products and services on biodiversity
Biodiversity and Land Resource Utilization Assessment 308-2 Negative environmental impacts in
the supply chain and actions Creating Value Together and Sharing the Future
20162016
304-3 Habitats protected or restored Biodiversity and Land Resource Utilization Employment
304-4 IUCN Red List species and national GRI 3: Material
Topics 2021 3-3 Management of material topics Employee Welfareconservation list species with habitats in Biodiversity and Land Resource Utilization
areas affected by operation 401-1 New employee hires and employee
Emissions turnover
Employee Welfare
Carbon Emissions and Addressing Climate GRI 401: GRI 3: Material Employment 401-2 Benefits provided to full-time
Topics 2021 3-3 Management of material topics Change; Crop-Livestock Cycle 2016 employees that are not provided to Employee Welfaretemporary or part-time employees
305-1 Direct (Scope 1) GHG emissions Carbon Emissions and Addressing Climate Change
401-3 Parental Leave Employee Welfare
305-2 Energy indirect (Scope 2) GHG
emissions Carbon Emissions and Addressing Climate Change Labor/Management Relations
305-3 Other indirect (Scope 3) GHG GRI 3: Material / Topics 2021 3-3 Management of material topics Employee WelfareGRI 305: emissions
Emissions 2016 GRI 402: Labor/
305-4 GHG emissions intensity Carbon Emissions and Addressing Climate Change Management 402-1 Minimum notice periods regarding
Relations 2016 operational changes
Employee Welfare
305-5 Reduction of GHG emissions Carbon Emissions and Addressing Climate Change
Occupational Health and Safety
305-6 Emissions of ozone-depleting
substances (ODS) Crop-Livestock Cycle GRI 3: Material
Topics 2021 3-3 Management of material topics Employee Welfare
108 109Performance Report
GRI Standards Disclosed Items Sections in the Report GRI Standards Disclosed Items Sections in the Report
403-1 Occupational health and safety GRI 406: Non-Employee Welfare discrimination 406-1 Incidents of discrimination and Creating Value Together and Sharing the Future; management system
2016 corrective actions taken Benefiting Employees
403-2 Hazard identification risk
assessment and incident investigation Employee Welfare Freedom of Association and Collective Bargaining
403-3 Occupational health services Employee Welfare GRI 3: Material Topics 2021 3-3 Management of material topics Employee Welfare
403-4 Worker participation consultation GRI 407:
and communication on occupational Employee Welfare Freedom of
health and safety Association 407-1 Operations and suppliers in which
GRI 403: and Collective the right to freedom of association and Employee Welfare
Occupational 403-5 Worker training on occupational
health and safety Employee Welfare Bargaining
collective bargaining may be at risk
Health and 2016
Safety 2018 403-6 Promotion of worker health Employee Welfare Child Labor
403-7 Prevention and mitigation of GRI 3: Material
occupational health and safety impacts Employee Welfare Topics 2021 3-3 Management of material topics Creating Value Together and Sharing the Future
directly linked by business relationships
GRI 408: Child 408-1 Operations and suppliers at
403-8 Workers covered by an occupational Labor 2016 significant risk for incidents of child labor Creating Value Together and Sharing the Future
health and safety management system Employee Welfare
Forced or Compulsory Labor
403-9 Work-related injuries Employee Welfare
GRI 3: Material
Topics 2021 3-3 Management of material topics Creating Value Together and Sharing the Future403-10 Work-related ill health Employee Welfare
Training and Education GRI 409:
Forced or 409-1 Operations and suppliers at
GRI 3: Material Compulsory significant risk for incidents of forced or Creating Value Together and Sharing the Future
Topics 2021 3-3 Management of material topics Employee Welfare Labor 2016 compulsory labor
404-1 Average hours of training per year
per employee Employee Welfare
Security Practices
GRI 3: Material
GRI 404: 404-2 Programs for upgrading employee Topics 2021 3-3 Management of material topics /
Training and skills and transition assistance Employee Welfare
Education 2016 GRI 410:
404-3 Percentage of employees Procurement 410-1 Security personnel trained in human /
receiving regular performance and career Employee Welfare Practices 2016 rights policies or procedures
development reviews Rights of Indigenous Peoples
Diversity and Equal Opportunity GRI 3: Material
Topics 2021 3-3 Management of material topics Promoting Community DevelopmentGRI 3: Material 3-3 Management of material topics Optimizing Corporate Governance; Benefiting Topics 2021 Employees GRI 411: Rights 411-1 Incidents of violations involving
GRI 405: 405-1 Diversity of governance bodies and of Indigenous rights of indigenous peoples Promoting Community Development
Diversity employees Optimizing Corporate Governance Peoples 2016
and Equal
Opportunity 405-2 Ratio of basic salary and Local Communities
2016 remuneration of women to men
Employee Welfare
GRI 3: Material
Topics 2021 3-3 Management of material topics Promoting Community DevelopmentNon-discrimination
GRI 413: Local 413-1 Operations with local community
GRI 3: Material 3-3 Management of material topics Creating Value Together and Sharing the Future; Communities engagement impact assessments and Promoting Community DevelopmentTopics 2021 Benefiting Employees 2016 development programs
110 111Performance Report
GRI Standards Disclosed Items Sections in the Report Reader Feedback
GRI 413: Local 413-2 Operations with significant actual
Communities and potential negative impacts on local Promoting Community Development
2016 communities Dear readers
Supplier Social Assessment Thank you for reading the ESG Report 2022 of Muyuan Foods Co. Ltd. In order to provide more valuable
GRI 3: Material 3-3 Management of material topics Creating Value Together and Sharing the Future information to the Company’s stakeholders and further improve its fulfillment of social responsibilities Topics 2021 Muyuan would welcome any feedback or suggestions you might have about the report.GRI 414: 414-1 New suppliers that were screened
Supplier using social criteria Creating Value Together and Sharing the Future
Address: Muyuan Foods Co. Ltd. Longsheng Industrial Park Wolong District Nanyang City Henan
Society Province
Assessment 414-2 Negative social impacts in the
supply chain and actions taken Creating Value Together and Sharing the Future
Tel: 0377-65233888
2016
Public Policy
GRI 3: Material Your Information
Topics 2021 3-3 Management of material topics Promoting Community Development
Name: Institution:
GRI 415: Public
Policy 2016 415-1 Political contributions Promoting Community Development Position: Telephone:
Customer Health and Safety
Fax: Email:
GRI 3: Material
Topics 2021 3-3 Management of material topics Product Responsibility Management Multiple choice questions (please tick √)
416-1 Assessment of the health and safety
GRI 416: impacts of product and service categories Product Responsibility Management
Occupational Options Excellent Good Average Fair Poor
Health and 416-2 Incidents of non-compliance
Safety 2016 concerning the health and safety impacts Product Responsibility Management The report comprehensively and accurately reflects the
of products and services significant impact of Muyuan Group on the economy
Marketing and Labeling society and environment.GRI 3: Material
Topics 2021 3-3 Management of material topics Win-Win Development with Value Chain Partners The report’s disclosure responds to the concerns of
stakeholders.
417-1 Requirements for product and
service information and labeling Win-Win Development with Value Chain Partners The information indicators and data disclosed in the report
GRI 417: 417-2 Incidents of non-compliance are clear accurate and complete.Marketing and concerning product and service /
Labeling 2016 information and labeling The report is readable in regard to its main logic content
design language and layout design.
417-3 Incidents of non-compliance
concerning marketing communications /
Customer Privacy
GRI 3: Material Open-ended questions
Topics 2021 3-3 Management of material topics /
GRI 418: 418-1 Substantiated complaints 1. What do you find most satisfying about this report?
Customer concerning breaches of customer privacy / 2. In your opinion what information you need to know is not involved in this
Privacy 2016 and losses of customer data
report?
3. Do you have any suggestions for us to compile ESG reports in the future?
112 113Performance Report
Muyuan Foods Co. Ltd.Office Address: Longsheng Industrial Park Wolong District Nanyang City Henan Province
Zip code: 473000
Telephone: 0377-65233888
Website: www.muyuanfoods.com
The paper used for the printed report is
E-mail: office@muyuanfoods.com environmentally friendly.
114
Create value
serve society
Be upright outside and inside
Advance social development
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