2021 Semiannual Report of New Hope Liuhe Co., Ltd
New Hope Liuhe Co., Ltd
2021 Semiannual Report
2021-99
August 2021
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
Section 1 Important Note, Table of Contents and Definitions
The board of directors, board of supervisors, directors, supervisors and
senior executives of the company warrant that the contents of this semiannual
report are true, accurate and complete and free of any false recordings,
misleading statements or significant omissions and will be jointly and severally
liable for the legal consequences.
The company’s CEO Liu Chang, chief accountant Chen Xingyao and
person in charge of accounting organization (accountant in charge) Chen Jing
state that the financial report in the semiannual report is true, accurate and
complete.
All directors of the company attended the board meeting deliberating this
report.
Investors are advised to particularly note that the annual financial budget,
business plan and business objectives of the company for 2021 don’t represent
the profit forecast of the company for 2021 and that whether they can be
realized depends on many factors such as changed market condition and level of
effort of the operating team, with huge uncertainties.
The company shall comply with the disclosure requirements set forth in
“Shenzhen Stock Exchange’s Industry Information Disclosure Guidance No.
1---Listed Companies Engaged in Livestock, Poultry and Aquaculture
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Businesses”.
I. Epidemic and natural disaster risks
The animal epidemic disease is the main risk faced in the development of
livestock industry. There are three kinds of risks arising out of the occurrence of
epidemic disease. First, the occurrence of epidemic disease is likely to result in
death of livestock, and leads directly to the reduction in yield, rising costs and
drop in prices. Second, the occurrence and prevalence of epidem ic disease on a
large scale easily influence the consumer psychology, lead to shrinking market
demand, and affect the feed production and operation. Third, after the outbreak
of some infectious epidemic diseases endangering the public health and safety,
the government will take lockdown and other measures to contain the spread of
epidemic disease. These epidemic containment measures will seriously hinder
the transportation of feed, animal healthcare products and live livestock, and the
workers returning to work, and have a great impact on the production and
operation of breeding industry. In addition, the outbreak of infectious epidemic
diseases will force most catering enterprises to close business, some agricultural
product markets to shut down, and consumers to reduce shopping activities
outdoors, resulting in reduced meat demand and consumption. For example, the
African Swine Fever (ASF) with an enormous impact on the entire industry
broke out in 2018. As the ASF is characterized by long latency and high
mortality after onset of the disease, and the effective and reliable vaccine has not
yet been developed successfully, coupled with the fact that it was also the
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concentrated outbreak on a large scale in China for the first time, both the
large-scale breeding enterprises and small farmers lacked effective containment
measures at the onset of epidemic, thereby suffering losses to varying degrees.
From the late 2020 to the first quarter of 2021, attenuated ASF virus bounced
back once again, especially hitting Hebei, Shandong, Henan and other places,
and once again causing prevalent effects to farming companies and farming
households in these areas.
The COVID-19 outbreak at the beginning of 2020 also posed daunting
challenges to the livestock and poultry breeding industry in China. The
anti-epidemic measures such as lockdown, delay in return to work, suspension of
live poultry trading, and shutdown of slaughter houses led to unavailability of
feed to farms and livestock farmers, newborn livestock nowhere to sell, inability
to slaughter livestock and poultry, and difficulties to conduct breeding
production activities normally. After entry into 2021, despite the stable epidemic
containment situation in China, scattered episodes of the epidemic across the
country and regional lockdown policies would also cause hindrances to
movement of personnel and materials related to business operations.
In terms of the natural disaster risk, the feed and slaughter are closely
related to planting and livestock breeding industry, so the natural disasters such
as temperature anomalies, drought, flood, earthquake, hail, and snow disaster
will all adversely affect the industry operation and development. The natural
disasters occurring on the production bases of the company and surrounding
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areas may cause substantial damages to production facilities or equipment, and
the natural disasters and extreme climate may also drive the prices of some feed
ingredients and meats up. For example, serious flood disasters broke out in
many places of South China in 2020, adversely affecting the planting, breeding,
farm produce logistics, project implementation and meat prices along the
industry chain to varying degrees: in terms of planting, continuous catastrophic
floods hitting some areas result in decreased output of feed ingredients, thus
impacting the feed ingredients prices, while at the same time decreasing the
quality of raw materials; in terms of breeding, flood might cause pathogenic
microorganisms buried in the land surrounding breeding farms to be exposed in
air and drinking water, and result in spread of pathogenic microorganisms and
trigger epidemic diseases. In addition, several provinces hardest hit by the floods
are major aquatic breeding areas in China, where the impact of floods not only
would destroy fishery production equipment but also is highly likely to wash off
fish-barring facilities and bring away fry and adult fishes, causing losses to
economic income of farmers and thus affecting feed ingredients sales of the
company; in terms of logistics, roads are flooded and roadbeds and road
surfaces destroyed wherever flood sweeps, forcing the freight costs of raw
materials, feed, finished products and breeding pigs to rise and the transport
capacity down, causing pressures on the supply chain of the company; in terms
of project implementation, continuous rainstorms also cause part of capital
investment construction projects of the company to suffer temporary shutdown,
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affecting the construction schedule; in terms of meat prices, flood would also
impact the meat supply and directly contributed to the rising prices of pigs,
while the gap in meat prices between affected areas and unaffected areas was
growing, thus leading to increased allocation and transport of hogs, and
resulting in spread of the pandemic to a certain extent.
Risk countermeasures: In the face of animal epidemics, the livestock farms
planned and constructed by the company’s breeding base are normalized and
standardized farms staffed with professional breeding technologists and
equipped with strict anti-epidemic measures to effectively prevent and control
the occurrence of epidemic diseases. The company has also summarized some
experience and measures responding to major epidemic diseases through years
of exploration and accumulation, which allow the company to eliminates the
impact of various epidemics by adjusting the product mix when appropriate,
improving the product quality, conducting deep market development actively
and reducing the costs. Since 2014, the company has been guiding technicians to
better serve farmers by establishing animal healthcare laboratories in various
areas, creating the cloud-based animal healthcare system, and conducting the
monitoring and warning of epidemics and diseases in real time. In view of ASF
outbreak in 2018, the company formulated all-round and system-wide
prevention and control measures, covering existing self-run pig farms, fattening
farms in cooperation with farmer households, new pig farms of the company,
swine feed production units and internal animal healthcare laboratories, with a
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view to ensuring proper prevention and control at the source of animal nutrition.
Meanwhile, actively participating in industry exchanges and exploring more
effective containment methods with peers allowed the company’s bio-safety
epidemic prevention system, pig survival rate and marketing rate to achieve
industry-leading levels. From the end of the previous year to the first quarter of
this year, a new round of attenuated ASF outbreak in many northern provin ces
is characterized by extensive outside contamination, numerous channels of
spread, long latency periods and a long phase of effect, thus posing new
challenges to the containment measures formed by the industry based on the
past two years of ASF containment at the initial stage of the outbreak. However,
the company continued summing up its experiences and upgrading containment
and decontamination methods in the containment process, including
whole-population serum double-antibody and double-screening, application of
thermal imagers, and static attenuation and disinfection of materials; and the
company added up its containment processes then subtracted so as to avoid
slackness resulting from prolonged and excessively trivial containment processes,
which helped restore normal production faster while ensuring containment, as
well as reduce bio-safety containment costs at the same time. With the aforesaid
measures, the number of ASF-affected farms at the end of the first half of the
year has been kept below 1%.
In response to the COVID-19, the company lost no time to react, formulated
and carried out various containment policies and conducted emergency
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disposition in a coordinated manner. Secondly, the company actively
communicates with the government at all levels, coordinates the transportation
of goods such as livestock products, and raw and auxiliary materials of feed and
products, secures vehicle passes, and implements the green channel policy
enacted by the government at all levels. Thirdly, the company ensures sufficient
procurement for feed plants and production supply through region-wide
coordination, strengthens internal support for poultry industry integration,
arranges its employees to return to work rapidly and orderly, contributes to the
adequate supply of daily necessities across the country, adjusts its food industry
strategy in real time and expands sales through supermarket channel and online
channel. Fourthly, in light of its business practices, the company compiled the
epidemic containment manual, published documents such as technical guidance
on employee prevention and control and quarantine and guidance on
engineering control amid epidemics, makes the epidemic prevention
arrangements in a targeted manner and strengthens employee safety protection.
In response to natural disasters, although unable to rule out the possibility
that serious natural disasters will occur in areas where its subsidiaries operate,
the company’s extensive business portfolio and presense both at home and
abroad help ensure that the company’s business will not be materially affected
when natural disasters occur in particular regions. Especially for the rainstorms
and floods in south China, which have occurred frequently in these years, the
company has accumulated a large wealth of experience, establishes proven
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contingency plans and maintains sufficient flood prevention supplies in stock at
all times, which allow the company to flexibly guide farmers through production
plan adjustments when the flood season begins in preparation for disaster relief
together. At the same time, the company can also take the advantage of its
nationwide presence to allocate funds, raw materials, equipment, and staff
timely and effectively to resume production as soon as possible and reduce the
losses caused by natural disasters.
II. Risk of price fluctuations of feed ingredients
The cost of main feed ingredients for feed production accounts for more
than 90% of total cost of feed production. In the past, the proportion of feed
business in the company’s revenue was large, but as the feed industry generally
adopts the cost-plus pricing method, the fluctuations in prices of feed ingredients
can be partly transmitted to the downstream breeding operations, to relieve the
pressure from the rising prices of feed ingredients. However, with a growing
percentage of livestock breeding business in the company’s revenue, the rising
prices of feed ingredients will have a growing impact on the company.
Since 2020, due to many influencing factors such as the COVID-19,
changed purchase and storage policies and crop yield in main grain-producing
areas of various countries, the prices of main feed ingredients such as corn and
soybean meal continuously rose, with the average market prices of corn
approaching 3,000 Yuan per ton in early 2021. Coupled with the continuous
tension between China and the US, which brings great uncertainties to the bulk
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produce trade between the two countries and international trade of feed
ingredients in the future, the risk of price fluctuations will exist in the long term.
Moreover, against the background of longtime existence of ASF in China, the
feed enterprises will reduce some high-risk feed ingredients for the safety of
animal nutrition, such as usage of corn, pig blood, and pig bone me al, so as to
make the demand for raw materials concentrate on other types of raw materials,
which will also lead to rise in prices of such alternative raw materials.
Risk countermeasures: The company is the largest domestic feed enterprise
with the scale advantages and a considerable say in the raw material purchasing.
The company started reorganizing and optimizing its raw material procurement
system in 2017, combed through its supplier system actively, established
strategic partnerships with many domestic and overseas best-run raw material
suppliers, conducted the supply chain financing of various forms actively, and
optimized its purchasing cost and related financial expenses. In 2019, the
company continued to drive transformations in terms of central purchasing of
raw materials, strategic purchasing channel optimization of partners,
acquisition of corn produced in northeast China, and purchasing model
upgrading, realizing a greater purchasing value despite the challenges. The
COVID-19 crisis in 2020 has caused phase-specific impact on the prices of feed
ingredients and feed additives, but the company applied hedging tools more to
control the ingredient price fluctuation risk, while the company’s technology,
purchasing, production and marketing departments worked closely with each
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other during the response to the pandemic, with these experiences already
summarized and applied into the daily operation management of the feed
business. In the first half of 2021, when prices of main feed ingredients such as
corn and soybean meal continuously fluctuated at high levels, the company
actively purchased imported low-price ingredients and alternative ingredients
such as wheat, sorghum and brown rice while properly anticipating the market
condition, in an effort to continually optimize ingredient costs.
III. Risk of price fluctuations of livestock and poultry
The finished products of livestock and poultry breeding business of the
company mainly include baby chick, baby duck, white -feathered chicken,
white-feathered duck, breeding pig, piglet, and hog. Especially since 2016, the
pig farming business of the company has been growing rapidly, with 8.29 million
hogs sold in 2020 and more than 500 million self-raised and outsourced
commercial generation chicken and ducks sold, which allowed the livestock and
poultry breeding to contribute greater to the entire revenue and profits of the
company. Along with the further growth of breeding volume of the company in
the future, the prices of livestock and poultry will affect the levels of revenue and
profits of the company even more remarkably.
In the first half of 2021, the domestic livestock and poultry markets saw
remarkably delinking pork prices and low-level fluctuations of poultry prices. in
the first half of 2021, the marketing rate of hogs rose 34% year-on-year, and
fixed-point monitoring results at the end of the first half of the year showed that
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the fertile sows on hand grew 30% year-on-year, hogs on hand grew 29%
year-on-year and the prices of hogs fell all the way from 36 Yuan/kg in early
2021 to the lowest point of 12 Yuan/kg in June, a decrease of over 60%, even
falling back to the low levels before this pork price cycle began ascending in
March 2019 for a time. In terms of the poultry business, the rising market
condition in 2018 and 2019 resulted in industry overcapacity, as the
grandparental breeding hens on hand, parental breeding hens on hand and sales
volume of commercial-generation baby chicken across the country in the first
half of 2021 were all sustained at the highest levels in the past six years. On the
side of consumption, the rapidly declining pork prices coupled with weakened
consumption demand caused by the COVID-19 allowed poultry meat prices to
remain low for a long period of time, making it more difficult for the poultry
business to profit.
Risk countermeasures: apart from the impact of sporadic epidemics, the
fluctuations in prices of livestock and poultry mainly depend on the periodic
increase and decrease in breeding and supply quantities. As a result, the process
of livestock and poultry prices going down itself is a process of the survival of
the fittest in the industry. Against this backdrop, the company still can generate
more revenue or suffer fewer losses than its rivals in the process of pric e decline
as long as it increases its breeding efficiency and makes its breeding costs lower
than its rivals. When some participants exit, the total supply declines and the
prices rise again, the company might gain a greater market share and a higher
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return on investment than before. In recent years, the company has been
committed to continuously increasing its breeding efficiency, and enjoying
industry leadership in terms of production of healthy young breeding poultry
and PSY and full cost of pig breeding, which will ensure that the company will
remain highly competitive during the price fall of livestock and poultry.
Although the company’s rapid scale expansion on its pig business in the past
year caused some of its competitiveness to be diluted temporarily, and some best
practices failed to be replicated in time at newly commissioned pig farms, along
with the company’s full transition to a stage of robust operation, the company is
gradually improving its business operation efficiency, reducing farming costs
and restoring its original competitiveness by enhancing its internal management
capabilities through many measures. On the other hand, unlike most of
agricultural and livestock companies, the company has slaughtering and food
processing business at the downstream part of farming and feed business at the
upstream part of farming, which happens to hedge against the farming process.
The price decline of livestock and poultry means that the cost of raw meat in the
slaughtering and processing businesses falls too and its profit margin will be
increased; the declining prices of livestock and poultry also mean the farming
volume of livestock and poultry is at high levels, which also helps increase the
profitability of feed business. Such an industry chain presence can moderately
mitigate the effects of declining prices of livestock and poultry on the company.
IV. Impact of environmental protection policies
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In 2014, China started implementing the Regulations on Pollution
Prevention for Large-scale Breeding of Livestock and Poultry, as the
government was strongly determined to keep livestock farms in line and new
regulations were enacted across the country to demolish livestock farms, ban or
restrict livestock farming activities. At the level of central government, the new
“Environmental Protection Law” was enacted in 2015; in 2016, the State Council
issued the “13th Five-Year” Ecological Environment Protection Program”, even
more specifically requiring “local governments to close or relocate livestock
farms (communities) and breeding households within the banned areas
according to law by the end of 2017”. In 2018, the first group of central
environmental protection inspectors conducted the “follow-up reexaminations”,
as the efforts to investigate pollution caused by livestock farms were intensified
across the country, ordering some breeding households to shut down for
environmental remediation or close once for all due to their livestock farming
facilities failing to meet the environmental standards or discharging wa stewater
beyond the set standards. These pressures from the environmental protection
policies will force some livestock and poultry farms failing to meet the
environmental standards to exit the market, and lead to reduced breeding
quantities, which impacted on the growth of feed business of the company and
its acquisition of hogs and poultry for slaughtering business. Some branches and
subsidiaries of the company fail to meet the environmental protection
requirements economically through hardware transformation, or no longer have
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the market basis due to being located in the banned areas, which will lead to
their shutdown. In the long run, however, the exit of these outdated capacities
for incompliance with environmental standards will allow the best-run
producers that remain in the industry to acquire higher profitability, which is
still of a positive significance to the entire industry.
Risk countermeasures: in light of the changes of the breeding market, the
company makes every effort to maintain existing customers, and strengthens its
cooperation with medium and large-sized farms and farmers that meet the
environmental standards by changing its feed marketing model and making full
use of its industrialized supporting and integrated services . While exploring a
new way of breeding, the company regards ecology, environmental protection,
efficiency and safety as primary considerations in its project design, helps
farmers remodel and build sheds and stalls that meet the higher environmental
standards, increase the profitability of breeding business and actively drive the
domestic livestock and poultry farming industry to grow healthily. On the other
hand, the company actively grows its inventories by cultivating new livestock
and poultry farming bases in environmentally suitable areas through
construction, acquisition, joint venture and cooperation using its existing
business portfolio across the country, thus ensuring the stability of its breeding
resources.
V. Risk of food safety
Food safety concerns the physical health and life safety of the general public,
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and is even a matter of life and death for food companies. Occurrence of food
safety problems or accidents would cause food companies to face claims, actions
or related penalties in a way that even affects their brands and reputations,
thereby materially adversely affecting their business, financial condition, stock
prices or business performance. The implementation of the revised “Food Safety
Law” in 2015 also means that China has brought its focus on food safety to an
unprecedented level. The outbreak of ASF in 2018 raised even more demanding
requirements for food safety control. Although the ASF itself is not a zoonotic
disease and the pork with ASF virus is not harmful at all to humans after
conventional heating and cooking, as there is not yet fully effective containment
measure against ASF at present, and the pork and its products are one of the
main vectors of the virus, more costs are required to prevent and control ASF
during the process of hog recovery and slaughter, pork transportation and
vending. In 2019, the State Council issued the “Opinions on Deepening Reforms
and Strengthening Food Safety Efforts”, making clear the need to further beef
up food safety efforts and ensure the “safety on the dining table” of the general
public with the most rigorous standards, the most stringent oversight, the most
severe penalties and the most serious accountability.
Risk countermeasures: the company has always been highly concerned
about food safety by seriously ensuring food safety in each link of its business
practices. In 2015, the company established its safety and environmental
protection department to ensure safety, health and environmental protection of
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its products, and upgraded the equipment in its “three-level” testing system,
expanded the laboratories of its branches and subsidiaries in terms of human
and material resources, guaranteed the allocation and input of funds, resources
and personnel across the food industry chain, which upgraded the food safety
organization management, equipment and facilities, process management and
key process control., So far, the company has created a food safety control chain
from feed, livestock and poultry breeding all the way to dining table. In 2014,
the “Beiyouzi” branded duck meat produced by the company was the first in
China to achieve end-to-end traceability; in 2015, Chengdu Xiwang Food Co.,
Ltd, a subsidiary of the company, became one of the second group of pilot
companies for implementation of the national standard of “food cold chain
logistics traceability management requirements”. In 2016, the company passed
the food technical standard certification by the British Retail Council (BRC),
and was elected the Vice President of the China Council at the first plenary
session of the Global Food Safety Initiative (GFSI) in China, becoming the first
Chinese private enterprise to be selected as a member of the global board of
directors of GFSI. In 2019, the 8th GFSI Focus Day China organized by the
company was held, marking the first time a private enterprise organized this
event since GFSI began holding the Focus Day China in 2012. At present, all
food businesses of the company have passed China-HACCP certification, and
more than 60 food companies are finishing the BRC and Global-GAP
certifications in succession. In addition, the company systematically explores the
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antibiotic-reducing and antibiotic-free possibilities in cooperation with multiple
parties using the GFSI platform resources, and actively drives the
popularization of antibiotic-reducing and antibiotic-free successful cases.
VI. Risk of exchange rate fluctuations
Currently, the global purchasing of raw materials for feed production is
going deeper, and the feed enterprises have been increasingly affected by the
exchange rate in terms of feed ingredients purchasing centered on foreign supply
such as corn, soybean, whey powder, fish meal and DDGS. At the same time, the
company has larger foreign operations than its Chinese peers, and in the foreign
investment and overseas operations, the cross-border capital transaction and
settlement amounts involved are growing, thus making the company more
vulnerable to exchange rate fluctuations. Since 2019, the bumpy China -US
relations caused the RMB/USD exchange rate to fluctuate frequently.
Throughout 2020, the RMB exchange rate showed a trend of fall before rise and
went down in a zigzag manner due to the impact of the COVID-19 in the first
half of the year, but a new round of rapid appreciation started as China was the
first to contain the pandemic and resumed work and business operations at a
quickened pace in the second half of the year. Such violent turbulences produced
impacts on the foreign exchange management of the company. Besides, in
certain overseas countries where the company operates, the exchange rate of
local currencies against USD depreciated remarkably due to the COVID -19,
political turbulence, and foreign exchange policy adjustments, which also
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produced an adverse impact on the company.
Risk countermeasures: In response to the growing needs for overseas raw
material purchasing and investment and operation, the company started
building its Singaporean branch into an overseas commercial and trading center
and investment and financing center in 2016, actively conduc ted international
centralized purchasing of raw materials, foreign direct financing, supply chain
finance, foreign exchange risk management and raw materials purchasing risk
management on its Singaporean platform, in order to reduce the impact of
exchange rate fluctuations on its cash flow in overseas operations. Meanwhile,
the company further strengthened its close connection and communication with
overseas financial institutions, overseas agencies of the Chinese government and
host governments to analyze the trends of local currencies’ exchange rates in
host countries in time and ease the adverse impact of exchange rate fluctuations
by means of direct investment in local currencies abroad, etc.
VII. Risk of human resources
The risk of human resources to the company is mainly manifested in the
following four aspects. First, the pig farming scale of the company is now at a
phase of leapfrog development. As at the end of the first half of 2021, the
company’s pig farming team totaled 46,000 persons, and management radius of
the company also increased as a result, therefore, there are tremendous
pressures and challenges in terms of rapidly training and retaining a large
number of qualified pig farming workers. If the personnel recruitment, training
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and retention prove inadequate, potential risks will arise for the subsequent pig
farm management and operation. Second, as the company transforms from a
traditional agricultural and animal husbandry enterprise to a agricultural,
animal husbandry and food integrated enterprise, the company will face the risk
of insufficient reserve of high-caliber operation and management personnel in
new business domains and of personnel in food retail, engineering technology, IT
and other emerging fields. Third, along with the rising human cost, employee
compensation has become an important factor in cost increase of the company.
Fourth, as a leading enterprise in China’s agricultural and animal husbandry
industry, the company has cultivated a large number of outstanding employees
in its multiyear history, but the competition for human resources is intensifying
due to the increasing competition in the industry and entry of new players of
different backgrounds into the industry over the past years, meaning the brain
drain will cause losses to the company and subsequently affect the sustainable
development of the company.
Risk countermeasures: the company has looked at talent cultivation and
organizational activation as a long-term strategic task of the company. In terms
of recruiting talented pig farmers, the company expanded its recruitment
channel beyond college graduates majored in agriculture and animal husbandry
to recruit non-specialized college graduates and veterans. In terms of pig farmer
training, the company broke down daily production processes according to
standards and internalized them using IT means. It offers specialized courses of
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different levels for general manager, farm managers all the way down to the
newly recruited frontline workers through in-house pig farming universities and
pig industry research institutes that offer high-frequency learning, training and
teaching possibilities. Moreover, through the modern apprenticeship system
inside pig farms and one-to-one mentoring and reinforcement by sophisticated
employees, the time to cultivate new employees has been greatly shortened. The
company further perfected its pig industry talent motivation system, whereby
personnel at all levels in pig industry will receive industry-leading economic
return based on their value output. In addition, in order to reduce the pressure
on human cost, the company intensified its efforts to carry out projects such as
pig farming in multistory buildings, intelligent pig farms and things of internet,
which will significantly increase its effic iency of personnel utilization.
The company also intensified its efforts to recruit talented people in
strategic, new businesses, while actively conducting cross-industry training and
learning to enrich the knowledge structure and capability structure of its
existing personnel. The company realized a continuous increase in per capita
efficiency by efficiency improvement, lean management, optimization of
industry chain design and organization flattening; created the professional
manager development channel with survival of the fittest by constructing the
competition, selection and elimination mechanisms; and creates the growth
community of employees and the company by constructing reasonable
evaluation and incentive mechanisms and value sharing mechanisms. In 2019,
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the company implemented its restricted stock and stock option incentive plan for
the first time to motivate its key technologists and key members of pig farming
teams more for increased cohesion and corporate competiveness and to fully
motivate senior management personnel a part of key employees of the company
at work.
The company plans not to distribute cash dividends or allot bonus shares or
transfer its capital reserve to share capital.
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Table of contents
Section 1 Important Note, Table of Contents and Definitions........................................................ 2
Section 2 Company Profile and Key Financial Indicators ........................................................... 26
Section 3 Manage ment Discussion and Analysis ........................................................................... 29
Section 4 Corporate Governance .................................................................................................... 72
Section 5 Environmental and Social Responsibilities ................................................................... 75
Section 6 Significant Events .......................................................................................................... 181
Section 7 Changes in Shares and Information about Shareholders .......................................... 222
Section 8 Details related to Preferred Shares .............................................................................. 232
Section 9 Details related to Corporate Bonds .............................................................................. 233
Section 10 Financial Report .......................................................................................................... 237
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List of Reference Documents
(I) Financial statements signed and stamped by the chief executive officer, person in charge of accounting and
head of accounting organization (chief accountant) of the company.
(II) Originals of all corporate documents and manuscripts of announcements publicly disclosed on China Securities
Journal, Securities Times, Shanghai Securities News and Securities Daily during the reporting period.
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Definitions
Term Refers to Definition
This company, the company, listed company,
Refers to New Hope Liuhe Co., Ltd
New Hope
CSRC Refers to Securities Regulatory Commission
Sichuan CSRC Refers to Sichuan Office of Securities Regulatory Commission
SZSE Refers to Shenzhen Stock Exchange
CSDC Refers to China Securities Depository and Clearing Co., Ltd
NAFMII Refers to National Association of Financial Market Institutional Investors
Company Law Refers to Company Law of the People’s Republic of China
Securities Law Refers to Securities Law of the People’s Republic of China
New Hope Group Refers to New Hope Group Co., Ltd
South Hope Refers to South Hope Industrial Co., Ltd
China Minsheng Bank Refers to China Minsheng Banking Corp.
New Hope Chemical Refers to New Hope Chemical Investment Co., Ltd
Lhasa Economic and Technological Development Zone Beishuo
Beishuo Investment Refers to
Investment Center (L.P.)
Finance Company Refers to New Hope Finance Co., Ltd
Liuhe Group Refers to Shandong New Hope Liuhe Group Co., Ltd
Polaris Bay Refers to Polaris Bay Co., Ltd
Hope Group Refers to Hope Group Co., Ltd
Besun Agricultural Refers to Yangling Besun Agricultural Industry Group Co., Ltd
The 2019 incentive plan Refers to The 2019 restricted stock and stock option incentive plan
The 2021 incentive plan Refers to The 2021 restricted stock incentive plan
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Section 2 Company Profile and Key Financial Indicators
I. Company Information
Stock abbreviation New Hope Stock code 000876
Stock exchange on which
Shenzhen Stock Exchange
stock is listed
Chinese name of the company 新希望六和股份有限公司
Chinese abbreviation of the
新希望
company（if any）
English name of the company
NEW HOPE LIUHE CO., LTD.
(if any)
English abbreviation of the
NEW HOPE
company (if any)
Legal representative of the
Liu Chang
company
II. Contact persons and contact details
Board secretary Securities affairs representative
Name Lan Jia Bai Xubo
11F, Block T3A, Wangjing SOHO Center, 11F, Block T3A, Wangjing SOHO Center,
Contact address No. 10, Wangjing Street, Chaoyang No. 10, Wangjing Street, Chaoyang
District, Beijing District, Beijing
Tel （010）53299899-7666 （010）53299899-7666 （028）85950011
Fax （010）53299898 （010）53299898
Email 000876@newhope.cn baixb@newhope.cn
III. Other details
1. Company’s contact details
Whether the company’s registered address, office address, post codes, company website and email address have changed during the
reporting period
□ applicable √ not applicable
There is no change to the company’s registered address, office address, post codes, company website or email address during the
reporting period, as detailed in the 2020 annual report.
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
2. Information disclosure and filing place
Whether the information disclosure and filing place have been changed during the reporting period
□ applicable √ not applicable
There was no change to the name of information disclosure newspaper selected by the company, the website address of the website
designated by CSRC for publication of semiannual reports or the filing place of the company’s semiannual reports during the
reporting period, as detailed in the 2020 annual report.
IV. Key accounting data and financial indicators
Whether the company needs to retroactively adjust or restate the accounting data of previous years
□ yes √ no
Increase or decrease in this
The same period of the
This reporting period reporting period from the same
previous year
period of the previous year
Business revenue (Yuan) 61,518,574,560.67 44,696,040,364.08 37.64%
Net profits attributable to shareholders of
-3,415,066,136.23 3,163,865,460.00 -207.94%
the listed company (Yuan)
Net profits attributable to shareholders of
the listed company after deduction of -2,304,738,918.62 3,283,676,864.54 -170.19%
non-recurring profit and loss (Yuan)
Net cash flows from operating activities
-4,596,606,685.74 658,593,331.58 -797.94%
(Yuan)
Basic earnings per share (Yuan/share） -0.79 0.76 -203.95%
Diluted earnings per share (Yuan/share) -0.78 0.75 -204.00%
Weighted average ROE -9.28% 11.16% 20.44% down
Increase or decrease at the end
End of this reporting
End of the previous year of this reporting period from
period
the end of the previous year
Total assets (Yuan) 132,387,884,782.28 109,443,465,562.15 20.96%
Net assets attributable to shareholders of
37,195,108,119.35 39,846,334,135.68 -6.65%
the listed company (Yuan)
V. Differences in accounting data under domestic and overseas accounting standards
1. Differences between the net profit and net assets disclosed in accordance with international accounting
standards and Chinese accounting standards in the financial report
□ applicable √ not applicable
The company had no difference in net profits and net assets in financial reports disclosed under both international accountin g
standards and Chinese accounting standards during the reporting period.
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
2. Differences between the net profit and net assets disclosed in accordance with overseas accounting
standards and Chinese accounting standards in the financial report
□ applicable √ not applicable
The company had no difference in net profits and net assets in financial reports disclosed under both overseas accounting standards
and Chinese accounting standards during the reporting period.
VI. Items and amounts of non-recurring profit and loss
√ applicable □ not applicable
Unit: Yuan
Item Amount
Profit and loss from disposal of noncurrent assets (including the charged-off portion of the
-845,492,806.46
accrued provision for asset impairment)
Government grants charged to current profit and loss ((excluding government grants given in
the Company’s ordinary course of business at fixed quotas or amounts as per government’s 109,067,178.52
uniform standards)
Investment costs for acquisition of subsidiaries, associates and joint venture less than gains
320,326.09
from the fair value of identifiable net assets of the investees
Except for the effective hedging activities related to the Company's ordinary activities, profit or
loss arising from changes in fair value of financial assets held for trading, derivative financial
assets, financial liabilities held for trading, and derivative financial liabilities, and investment -17,631,335.35
income from disposal of financial assets held for trading, derivative financial assets, financial
liabilities held for trading, derivative financial liabilities, and other debt investments
Reversal of impairment provision for receivables and contract assets subjected to separate
12,461,280.08
impairment test
Other non-operating incomes and expenses other than the aforesaid items -402,425,817.82
Other items of profit and loss that conform to the definition of non-recurring profit and loss. 0.00
Minus: effect of income tax 3,990,494.71
effect of minority interests (after tax) -37,364,452.04
Total -1,110,327,217.61
For non-recurring profit and loss items defined by the company according to the “Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering their Secur ities to the Public– Non-recurring Profit and Loss”, and for defining the non-recurring
profit and loss items enumerated in “Explanatory Announcement No. 1 on Information Disclosure for Companies Offering their
Securities to the Public– Non-recurring Profit and Loss” as recurring profit and loss items, the reasons shall be explained.
□ applicable √ not applicable
During the reporting period, there was no circumstance in which the company defined the non-recurring items of profit and loss as
defined and enumerated in the “Explanatory Announcement No. 1 on Information Disclosure for Companies Offering their Securities
to the Public– Non-recurring Profit and Loss” as items of recurring profit and loss.
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
Section 3 Management Discussion and Analysis
I. Main operating activities of the company during the reporting period
The main businesses that the company operates include feed, white-feathered poultry, pig farming and food processing and
distribution.
(I) Feed business
Feed can be classified into three main categories, and they are premix, concentrates and compound feed according to the
nutritional ingredients contained. Premix feed is the mixture of various nutritional additives such as vitamin, mineral substa nce and
amino acid; feed concentrate is with further addition of various animal and vegetable proteins into premix feed; compound feed is the
combination of feed concentrate and additional energy-based raw materials. In terms of the final nutritional needs and formulation,
the amount of nutritional additives required is small but its per-unit value is high, and the energy-based raw materials have a low unit
value but the quantity required is signicant, while the protein-based raw materials fall between the two when it comes to per-unit
value and quantity requirement. Among 250 million tons of feeds nationwide in 2020, the premix feed only accounted for about 2.4%,
and the concentrated feed about 6%, and the compound feed more than 91%. What is produced by the vast majority of feed produc ers
is compound feed. Large companies have large demands for premix feed and concentrated feed due to their large outputs of
compound feed, so they generally would produce premix feed and concentrated feed themselves. The small and medium-sized
companies only produce compound feed due to the smaller scale of their operations, and they purchase required premix or
concentrated feed from large feed businesses or other independent premix producers. Some farmers of considerable scale would also
purchase premix or concentrated feed directly, and then blend it with protein-based and energy-based raw materials for their own use
on farm. The feed business of the company covers premix and concentrated feed as well as compound feed, of which the premix and
concentrated feed are sold directly to external customers as well as comfound feed plants that are internal to the business.
The feed can also be divided into poultry feed, swine feed, aquaculture feed, and ruminant feed according to animal species.
Among the feed yield nationwide in 2020, the poultry feed, swine feed, aquaculture feed and ruminant feed accounted for 50%, 35%,
8% and 5% respectively. The scope of the company’s feed business covers all the aforementioned categories. As the company has a
downstream business of raising white-feathered poultry and pigs, the poultry feed and swine feed produced by the company are made
available to downstream contract farmers and in-house livestock farms in addition to being sold to external customers. The
aquaculture feed and ruminant feed produced by the company are sold to external markets.
The main parts of feed business operations include technology development, raw material procurement, production and
processing, and sales service, usually simply referred to as “technology, procurement, production and sales” . The interaction between
technology and procurement is the closest. This is because the raw material cost of feed products accounts for 80-90% of selling
price, and the ability to procure raw materials at a competitive cost is one of key success factors. However, the raw material
procurement should take the nutritional needs into account, rather than only considering the cost. There are hundreds of raw material
types, resulting in thousands of combinations and feed formulae. Companies need to design the most cost-effective formula that
meets the specific nutritional needs according to the nutrient contents and costs of different raw materials at a given time, thereby
making appropriate procurement decisions. The production and processing parts mainly focus on production efficiency and product
quality. The sales service part mainly focuses on business development and maintenance, sells customized products to different
customer groups, helps farmer households enhance the breeding performance through additional services, optimizes the cost and
efficiency of the distribution process, and feeds back customer needs and product problems to the technology research and
development department in time to form good interactions.
In recent years, the domestic feed industry has entered the mature stage, as the growth rate of national feed yield from 2015 to
2020 was 1.4%, 4.5%, 5.9%, 2.8% and -3.7% and 10.4% respectively on a year-on-year basis. With the steadily growing total
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
quantity, the feeds for different animal species would show different growth trends due to different impacts of long-term,
intermediate term as well as short industry-specific cycles. The long cycle refers to the cycle of industrial upgrading and technical
progress, for example, the poultry feed with a higher degree of downstream large scale farming, a higher pene tration rate of
compound feed and relatively more mature technology has slower overall growth than the swine feed and aquaculture feed in recent
years. The intermediate term cycle refers to the cycle of supply-demand relation and price changes of livestock and poultry products,
as the periodic increase and decrease in breeding quantity of a particular type of animal downstream will affect the increase and
decrease of sales volume of the corresponding feed type upstream. The short cycle refers to the natural disasters and animal
epidemics that affect specific animals. For example, H7N9 flu affected poultry feed in the first half year of 2017, and African swine
fever (ASF) has a significant impact on swine feed from the mid-2018 up to now. Another good example is natural disaster including
the rainstorms and floods in the southern China that affected the aqua feed market in 2017, and. In 2019, under the influence of ASF,
the swine feed output nationwide decreased by 26.6% year-on-year. In 2020, the Chinese government actively encouraged the
recovery of pig farming and swine feed output rose again as, by 16.4% year-on-year, reaching 86% of the level of 2018. In the first
half of 2021, swine feeds bounced back across the board, rising by more than 70% year-on-year and beyond the pre-ASF levels.
The competition has become increasingly fierce as the industry matures. On one hand, each company has a solid position in
their existing business and specialty and strives to innovate. On the other hand, they are extending their business across the industry
chain to optimize their strategic positioning. In terms of technology research and development, has given rise to the development of
bio-environmentally friendly feeds, while aquaculture feed is being upgraded from sinking granulated feed to floating expanded feed.
In other feed categories, more specialised feed types and formulae have emerged that are specific to the various phases of feeding. In
terms of raw materials procurement, companies continuously explore new raw materials and are looking to achieve a more
diversified mix. While for the traditional commodity type of materials , businesses, through various means including strategic
partnership, equity investment and in-house operations, to secure the production capacity of their upstream production sites, and the
procurement of those materials is also aided with big data, futures and other financial instruments to improve efficiency and precision,
particularly when it comes to timing. In terms of production and processing, more efficient and agile logistics can support the
transportation of a larger radius, thus giving rise to more and more feed factories with larger capacities. Companies then improve
efficiency through more centralized large-scale production, while at the same time enhancing the quality through specialized
workshops or production lines. In terms of sales service, companies provide various types of value-added services to farmers in
addition to selling feed products. Some good examples are technical guidance, animal healthcare & veterinarian services, financing
support, information & insights service, and livestock and poultry sales. The value-added services help strengthen the customer
relationship, shorten the sales & distribution process, increase the ratio of direct supply, and increase the breeding efficiency and
income.
In terms of the upstream and downstream extension of the industry chain, companies can expand towards upstream operations
like raw material planting and trade , while some expand downstream to incorporate breeding, slaughter or food processing. Due to
the difference between pig and poultry industries (see the description in the white-feathered poultry business for details), many of the
poultry feed producers extends downstream to include poultry breeding and slaughtering a while back. In comparison to poultry,
swine feed producers extends to the pig breeding and slaughtering much later. But in the recent two pork price cycles, such extension
is becoming more common, especially in the wake of the ASF. Such extension to the downstream reflects the desire of feed producers
to control the downstream breeding and consumer needs, so that they can gain the profits from the downstream while ensuring the
upstream feed capacities can be fully utilized. The reason behind this lies in the shift of supply-demand relation across the industry
and gradual scale-up of the downstream breeding operations, as the focus of industry value gradually changes from the feed
operations in the past to the downstream breeding and food production.
Be it the enhancement and innovation of existing business or extension of the upstream and downstream of industry chain, they
all need to be supported by the overall competence of companies. Due to greater comprehensive strength, large companies tend to
have increasingly obvious advantages in the competition and growing market shares, thus leading to gradual increase in the market
concentration. From 2013 to 2019, the toal number of feed producers nationwide dropped to more than 7,800 from more than 10,000,
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
while the number of producers with larger per-plant output continuously grew. The total number of producers with annual output of
more than 0.1 million tons per plant in 2020 was 749, and is 128 more than the total number in 2019. The combined output of the
large produces accounted for 52.8% of the industry’s production, with a year-on-year growth rate of 19.8%, which is above the
industry growth rate. The ASF in 2019 had further accelerated the reshuffle and consolidation of the industry. Compared with the
large companies, small and medium-sized feed producers are weak in terms of technology, bio-safety and other aspects, and sell their
products mostly to family farms and small-scale free-ranging households, the latter of which are more affected by ASF, so that the
small and medium-sized feed producers are more affected than their large counterparts. Large companies will face more market
spaces after surviving the impact of ASF.
The feed business of the company has been the largest in the domestic feed industry for many years, with the poultry feed
business ranking first nationwide, swine feed and aquaculture feed ranking among top three nationwide, and ruminant feed also holds
a leading position nationwide. The company leads the industry to embrace the changes by relying on its leading position, and
strengthens its product power, purchasing power, productivity and service ability constantly, by launching biological
environment-friendly feed and antibiotic-free feed, eliminating the outdated capacities, and building high-output benchmarking
plants. On this basis, it actively pursues business extension accross industry chain and explores transformation and upgrading of its
business model. On one hand, we make full use of the downstream industry chain foundation, actively develop the integrated projects
of feed – breeding – slaughter, actively invest in and acquire food-related operations, and they have steadily promote our
transformation from a feed producer to a breeder and food producer. On the other hand, the company was the first in the industry to
launch the project of “everything flourishing” (poultry flourishing, pig flourishing, fish flourishing, cattle flourishing, s heep
flourishing) to provide technical and financial services to farmers, as well as the swine managemenet service targeting large pig
farms. We set up breeding training management companies or breeding service companies to facilitate the direct engagement wit h
large farms or farmers, and in the meantime, we also develop our financing guarrantee services steadily, and the two operations
jointly promote the development of feed business.
(II) White-feathered poultry business
The white-feathered poultry refers to large white-feathered broilers and white-feathered meat ducks, characterized by short
growth cycle and high feed conversion ratio. More than 4 billion white-feathered broilers and about 3 billion white-feathered meat
ducks are slaughtered in China every year, and with another 3 billion yellow-feathered broilers, they make up the main source of
poultry meat consumption in China. The white-feathered poultry business includes breeding poultry propagation, commercial
generation poultry breeding, poultry slaughter, and processed poultry meat. As the large-scale and industrial development of
white-feathered poultry industry started early and is now highly mature in China, coupled with the fact that the number of single
slaughtering batch of white-feathered poultry bred is large, it generally needs to work with the large-scale slaughter operations.
Therefore, numerous companies tend to fully intergrate the end-to-end industry chain in their operations, “poultry feed – commercial
poultry breeding – poultry slaughter” or what it is called in the market, “a fully integrated model”. A small number of large
companies would also further extend in the breeding poultry upstream and prepared poultry meat downstream respectively, so as to
form a more complete industry chain.
The breeding poultry propagation operations can be divided into breeding and breeder farming. Breeding refers to selective
breeding of high intergenerational good stock, while breeding poultry farming refers to expanding propagation of good breeds
selected, and output of commercial generation baby chicks and baby ducks. The breeding part has very high technological
complexity and needs long-term research and development accumulation. At present, it is mostly controlled by foreign pountry
breeding techonology companies, although some domestic leading companies have made breakthroughs in recent years, by
developing chickens and duck breeds that are of their own proprietary intellectual property. It is much more technologically
sophisticated than the commercial breeding, and it requires significant capital investment, particularly when it comes to breeding
poultry farms and breeding egg hatcheries, so it is generally invested and accomplished by companies instead of individual farmers.
As for the domestic white-feathered poultry industry, in terms of breeding poultry, great grandparent is introduced mostly from
foreign specialized breeding poultry companies, before carrying out the expanding propagation of grandparents and parents in China,
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
and then outputting the commercial generation baby chicks and baby ducks. However, as for particular companies, it mainly consists
of two categories. Most companies still focus on the downstream of the industry, especially the commercial generation breedin g and
slaughter, and extend the upstream breeding poultry cultivation only to the parent generation, and output the commercial generation
baby chicks and baby ducks for self use, although some of them will further extend to the grandparent generations for breeding. A
small number of specialized breeding poultry companies lay particular emphasis on the upstream, focus on introducing fine varieties
from abroad, and sell the baby chicks and baby ducks after expanding propagation in China, without getting involved in the
commercial generation breeding.
There are two main models involved in the commercial generation breeding, i.e., integrated company-run breeding and breeding
through cooperation between company and farmer households. The integrated company-run breeding means the commercial
generation chicken and duck breeding is run by a company itself, who ultimately slaughters and sells the chicken and ducks; the
breeding through cooperation between company and farmer households means a company provides or sells commercial generation
baby chicken and ducks to farmer households and ultimately recovers the adult chickens and ducks for slaughtering. According to the
settlement mode and the ownership of chickens and ducks as agreed in the contract, i.e. whether chickens and ducks are owned by
the company or farmer households, or whether the baby chicken and ducks are provided or sold by the company to farmer
households, the company-farmer cooperative breeding can be further divided into traditional contract breeding model and outsourced
breeding model. Whether a company chooses to run the commercial generation breeding on its own or not is related to the technical
attributes of this operation. Due to shorter growth cycle and faster turnover speed of the poultry than those of pigs, the fa rming
technology for the poultry is less technically difficult than pig farming, and the single-farm investment threshold is also relatively low.
Thus, the domestic poultry farming industry started earlier and is more mature and larger than the pig farming industry. As a result,
during the process of commercial ge neration breeding alone, there is usually no obvious difference in technology and efficiency
between companies and farmer households. The significance of companies choosing to operate commercial generation breeding
alone lie more in higher requirements raised by the downstream food industry, i.e. the upstream breeding operations are controllable
from the beginning to end so as to ensure the food safety. However, in recent years, stricter environmental regulation has br ought
new changes, as some commercial generation breeding companies or farmer households have to limit or stop production activities or
even exit the industry due to being located in banned areas or incompliance with environmental standards despite being locate d in
areas restricted or suitable for breeding. Therefore, the existing participants or new entrants in the industry must first ensure they
operate in the areas suitable for breeding, and then need to input more resources in the sheds, environmental protection and other
aspects. In order to adopt new environment-friendly technologies and sheds, even those companies sticking to the “company +
farmer” cooperative breeding model also need to build some sheds, adopt new technology and then play a demonstrative role by
running breeding operations themselves before popularizing them to farmers.
The capital investment in the poultry slaughter part is huge and is generally accomplished by companies. As described earlier ,
most poultry slaughtering plants would form the industry chain complementation with the upstream poultry breeding and even
poultry feed operations, focus on or preferentially recover the commercial generation chickens or ducks raised by themselves alone
or in cooperation with farmer households, but in some areas, the commercial generation chickens or ducks bred and sold by
independent farmers in the market would also be flexibly recovered in consideration of reducing the raw material costs and operating
costs based on the market quotations. At the same time, there are some poultry slaughter companies in the industry who possess no
breeding facilities and feed upstream, but purely rely on recovering the commercial generation chickens or ducks in the marke t for
slaughtering, thus making profits by acquiring at a low price and selling at a high price, and by taking advantage of the incomplete
synchronization between the quotations of commercial generation chicken and duck markets and those of chicken and duck meat
markets. But such business model is unstable, and many companies often suffer great losses due to misjudgment of market
quotations.
As poultry farming in China is more mature and large-scaled than pig farming, the poultry industry did not see apparent trends
of greater corporate investment in place of household farming in recent years like the pig industry did. What’s more commonly seen
is the normal industry cycle or ups and downs caused by unexpected epidemic factors, leading to capacity expansion and reduct ion of
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
companies and large-scaled farmer households to varying degrees, but the overall industry structure and market shares of leading
players remain stable compared with the pig industry. An effect that materially affected the industry structure in recent ye ars is the
strict environmental regulation in summer of 2017, where demolition of a large number of breeding sheds for substandard
environmental protection facilities and drastically reduced capacities of poultry breeding resulted in the capacity shortage of poultry
breeding since 2018 and the rising prices and profit recovery in terms of poultry breeding. The shortage of pork caused by ASF drove
the alternative supply of poultry meat since the beginning of 2019. Although the poultry breeding quantities have been at a h igher
level than the past years, the poultry industry was in a booming state with high prices and profitability throughout the year. But along
with the gradual stabilization of the ASF situation, the hog capacities nationwide bounced back gradually, which, coupled with the
weakened demand due to the COVID-19, caused the poultry cycle to show apparent downward trends faster than pork price cycle, as
the prices of commercial generation baby chicken and baby ducks started falling remarkably after peaking for recent two years in
2019, by 64% and 72% respectively in 2020,and the prices of baby chicken and baby ducks showed different situations in the first
half of 2021 by falling by 5.73% year-on-year and rising by 101% year-on-year respectively, as opposed to a 8% and 13% increase in
prices of non-slaughtered chicken and ducks year-on-year. Therefore, the white-feathered poultry industry still needs to improve all
parts of the industry chain in order to overcome the impact of cyclic fluctuations of poultry. In the short run, the important
opportunities for the industry is to accommodate the requirements of environmental protection upgrading and actively control
commercial generation breeding bases that meet the environmental requirements, starting with environment-friendly renovations and
shed upgrading, thereby realizing control over supply quantity and cost, food safety and production rhythm of commercial generation
breeding operations; in the long run, the industry still needs the synergy between breeding and slaughtering operations, so a s to
realize the channel upgrading on the sales end and enable high-standard input in the breeding operations to obtain a higher-premium
return in the poultry meat sales.
In terms of breeding poultry propagation, the company is the largest supplier of parental baby ducks and the second largest
supplier of commercial generation baby chicks and baby ducks in , enjoying industry leading technologies especially in the field of
breeding duck propagation. The company cooperates with the Chinese Academy of Agricultural Sciences, and elaborately selected
and bred the “Zhongxin” Beijing Duck in view of the characteristics of domestic consumption of ducks, which received the
certificate of new breed of livestock and poultry (complete set line) issued by China National Commission of Animal Genetic
Resources in April 2019, followed by official marketing. Part of baby chicks of the company are sold to other vendors, and the other
part are used for its downstream commercial generation breeding. The baby ducks are mainly used for the downstream commer cial
generation breeding of the company. In the first half of 2021, the company furthered its digital management of breeding poultry and
continued enhancing its industry competitiveness in cost, quality and technology research and development of baby chickens and
baby ducks.
In terms of commercial generation breeding, the company currently focuses on the “company + farmer household” cooperative
breeding model, and is upgrading from the traditional contract breeding model to the outsourced breeding model, while gradually
intensifying its efforts of in-house, integrated commercial generation breeding in areas where conditions permit. The ownership of
commercial generation chickens and ducks in the outsourced breeding model and in-house integrated breeding model belongs to the
company and is charged to its production and sales volume of poultry breeding. The total quantity of commercial generation ch icken
and ducks bred in the aforesaid two models has exceeded 440 million. In terms of the source of baby poultry, the outsourced breeding
and in-house integrated breeding operations would first choose the baby poultry produced by the company, while the company also
purchases baby poultry from other vendors in the traditional contract breeding model.
In term of poultry slaughter, the company has been ranking first in the industry for many years with its annual slaughtering
quantity of about 750 million poultries and poultry meat production and sales volume of about 2 million tons every year. The “Liuhe”
branded poultry meat under the flag of the company was the designated poultry meat for Shanghai World Expo 2010 and the Qingdao
Summit of Shanghai Cooperation Organization Qingdao 2018, enjoying a strong brand influence. Due to large production and sales
volumes, the poultry meat slaughtered and produced by the company has been sold mainly through the traditional trade mode of
wholesale markets for a long time. The wholesale market channel can help digest the enormous yields upstream, but is detrimental to
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
establishing the brand image and gaining a larger value space for the poultry meat products of the company in the long run. Therefore,
the company has been vigorously advancing the poultry slaughter business to implement the strategic transformation since 2014, by
intensifying the short-distance fresh product sales, and expanding the connection with multiple emerging channels such as
downstream food processors, supermarket chains, and restaurant chains, reducing its dependence on wholesale market channel, a nd
promoting the channel upgrading.
(III) Pig farming business
The pig farming has much in common with poultry breeding in various intergenerational production processes, i.e. division of
work between domestic and overseas companies. The pig farming business includes breeding pig propagation and commercial pig
fattening. The breeding pig propagation can be subdivided into breeding and breeding pig farming. Breeding specifically refer s to
selection and breeding of high intergenerational good stock, while breeding pig farming refers to further expanding propagation of
original breeding pigs, and output of boar semen, sows, and commercial generation piglets. The breeding of pigs also needs
long-term research and development accumulation due to very high technological complexity. At present, it is mostly controlled by
foreign specialized breeding pig companies, although some leading companies in China have made breakthroughs in recent years.
However, most domestic companies only introduce the great grandparental pigs from foreign suppliers and carry out the expanding
propagation of grandparents and parents in China, without setting foot in the upstream breeding operations. In this regard, some of
them are specialized breeding pig companies, who directly sell the breeding pigs and piglets to other companies after expanding
propagation of great grandparental pigs introduced abroad, without setting foot in the commercial generation breeding. Some other
cases are extension made by large commercial generation pig companies towards the breeding pig cultivation operations upstream in
order to ensure in-house availability of breeding pigs and piglets, with the parental breeding pigs and commercial generation piglets
produced for their own use. To ensure availability of piglets to themselves, some farmer households would also participate in the
parental breeding operations, i.e. they purchase the parental sows and boar semen from companies and then propagate piglets
themselves. This is different from the fact that the farmer households only breed the commercial generation poultry in the poultry
farming, instead of breeding poultry. Even so, more and more farmer households are exiting from the parental breeding operations
gradually. This is mainly because the large companies engage in large-scale and intensive piglet production along with development
of the breeding technologies, demonstrating obvious efficiency differences compared with the piglet breeding by farmer households
themselves. This is embodied in the most common indicator PSY in the industry. In years before the ASF outbreak, the average PSY
of the entire industry was about 17, PSY of large companies is generally over 20, and the average PSY of self propagation and self
breeding by farmer households is about 15. After the ASF outbreak, due to the impacts of the epidemic and extensive use of ternary
sows resulting from rapid recovery of production, the PSY of the entire industry in the past two years decreased a whole, but the
difference in this regard between major companies and farmer households still exists. During the fattening process of commercial
pigs, companies are also considerably different from with the farmers in technology and efficiency, but such difference in ef ficiency
is not as large as it is in the piglet production operations. Coupled with the fact that self-built fattening farms also require additional
huge investments of fixed assets, which are detrimental to rapid asset-light expansion, large companies engaged in breeding and
piglet production and farmer households focused on the fattening process constitute an allocation with the optimal efficiency formed
so far in the industry.
There are also two main models in the commercial pig fattening process, i.e., in-house integrated breeding and “company +
farmer household” cooperative breeding. The in-house integrated breeding means the commercial generation pig fattening is run
entirely by a company itself. The “company + farmer household” cooperative breeding means a company provides or sells
commercial generation piglets to farmer households, who fatten the piglets. This is somewhat different from poultry breeding, i.e. it
focuses on outsourced breeding model under the “company + farmer household” cooperative model, whereby piglets are provided t o
farmer households by a company, and the ownership of piglets and hogs remains with the company, which recovers the hogs after
completion of the fattening process. Or alternatively, a company directly sells commercial generation piglets to farmer house holds,
but is not responsible for hog recovery, i.e. the traditional contract breeding model of selling baby chicks and baby ducks and then
recovering in the poultry breeding exists less. Similarly, the question of whether companies choose to operate the commercial pig
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
fattening process themselves or not is related to the technical attribute of this operation. During the process of commercial pig
fattening, the difference in efficiency between companies and farmers is not as large as it is in the piglet production effic iency at the
present stage. Meanwhile, the large investment in in-house fattening affects the return on investment. Therefore, when numerous
companies invested in the pig farming industry in recent years, especially at the early stage where they compete for market s hares,
the vast majority of them first chose the “company+ farmer household” cooperative farming mode l, i.e, they invested first in
breeding capacities instead of fattening capacities, although the fully integrated in-house fattening model is still less frequently used
at the current stage. On the other hand, influenced by the ASF epidemic in recent years, numerous free -range farming households
find it relatively difficult to achieve good containment results due to limited access to equipment and facilities, thus posing a higher
bio-safety risk. Best-run companies using the integrated in-house farming model in the industry can realize epidemic containment
better than household farming to a certain extent through fine management of the in-house fattening operations. Although companies
adopting the “company + farmer household” cooperative farming model would help cooperative households with equipment and
facility upgrading to varying degrees, such upgrading is after all not as convenient as that of self-run fattening farms; moreover, there
are a growing number of automated and IT-enabled equipment emerging that can help reduce costs in long term, these new
equipment and technologies are easier to adopt and implement in company-run fattening farms than in cooperative fattening farms of
farmer households. Coupled with the gradual elapse of the early stage of competition for market shares and gradual stabilizat ion of
the industry structure, major companies shifted their attention again to continuously reducing costs in the long run. These factors
made major companies generally willing to subsequently increase the ratio of in-house fattening operations.
The biggest difference between pig breeding and poultry breeding is the degree of vertical integration towards the downstream
slaughtering operations. Due to the smaller batches of pigs to be slaughtered than those of poultry to be slaughtered, the small
slaughtering houses are capable to do the job, resulting in little motivation to develop pig breeding business in para llel with
large-scale industrial pig slaughtering business at the early stage of development. Regardless of whether purchasing sows from pig
breeding companies for self propagation and self breeding or directly purchasing piglets, farmer households can choose to contact pig
vendors for sale after completion of fattening, before pig vendors sell to slaughtering plants or small slaughter houses. Eve n though
the ratio of large-scale breeding has been increasing in recent years, the annual slaughter scale of breeding clusters of large
companies mostly ranges from 300,000 to 500,000 pigs, as opposed to the annual capacity of at least 1 million pigs of large -scale
slaughtering plants. At present, after fattening of commercial pigs, large companies still have to se ll a large proportion of pigs to pig
vendors, although they can sell a limited number of pigs directly to slaughtering plants. Thus, most of the domestic pig bree ding
companies and pig slaughter companies develop their business independently nowadays.
Due to the longer cycle of pig breeding, the pig breeding has more obvious and stable cyclic characteristics than poultry
breeding. A “pork price cycle” is generally 3-5 years, which has been gradually extended as pig breeding companies and farming
households have been growing in size over the past years and became more capable to sustain their business during the trough period.
Since 2006, China experienced three complete cycles and is currently experiencing the fourth cycle. The present cycle started in the
mid-2018, and in the first half of 2018, the entire industry saw the lowest pork prices since 2011 due to the capacity expansion in the
previous pork price cycle. In the second half of 2018, the serious ASF broke out in, causing losses to both pig breeding companies
and farmers to varying degrees. Under the dual impact of depressed market and epidemics, this round of expansion investment has
been slowing down, with some companies even stopping expanding. In 2019, when the ASF remained rampant and relevant va ccines
and effective treatments are still not available in the industry so far, companies and small and medium-sized farming households
continued exiting the industry and only those large companies with good bio-safety track records were capable to expand their
business, which led to a sharp reduction in the industry capacity. The swine livestock on hand at the end of 2019 fell by 27. 5%, and
the number of hogs marketed in 2019 fell by 21.6%. After the hog prices exceeded a historic high of 40 Yuan/kg in the second half of
2019, the prices remain relatively high above 30 Yuan/kg for a long period of time. Since 2020, while accumulating certain bio-safety
control experience, companies pursued large-scale capacity expansions, further recovering the basic production capacity in the hog
industry. By the end of 2020, the hogs and fertile sows in stock across the country increased remarkably from the end of the previous
year, as hogs in stock reached 407 million, 31.0% up from the end of 2019, and fertile sows in stock reached 41.61 million, 35.1% up
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
from the end of 2019. In the first half of 2021, hog supply continued rising remarkably, as the marketing rate of hogs grew by 34%
year-on-year in the first half of the year and fixed-point monitoring results of the first half of the year showed that the fertile sows in
stock grew by 30% year-on-year and hogs in stock grew by 29% year-on-year, to 439 million. The increased supply drove the prices
to fall remarkably, as the hog prices fell all the way from 36 Yuan/kg in early 2021 to the lowest point of 12 Yuan/kg in June, a
decrease of over 60%, even falling back to the low levels before this pork price cycle began ascending in March 2019 for a time.
The company started late in the pig farming business, but has been insist ing on business development to high standards since
starting its pig farming business. Using a highly automated and intensive production mode, the 1 million swine production pro ject
financed and implemented by the company in Xiajin of Shandong since 2013 is dedicated to establishing a benchmark in the
domestic pig farming industry. In February 2016, the board of directors of the company deliberated and passed the Strategic P lan for
Pig Farming Business, starting to greatly develop its pig farming business. Over the past two years, the company invested heavily in
pig farming business in order to capitalize on the opportunities arising in the wake of the ASF outbreak. By the end of 2020, the
company realized and reserved a capacity portfolio of over 70 million pigs nationwide, in-house fattening capacities of nearly 4
million pigs in stock and live hog sales of 8.29 million pigs throughout the year, allowing the company to maintain its spot among the
top listed companies in the country.
1. Farming model of the company’s pig farming business
In terms of breeding of breeding pigs, the company has established the PIC and Hypor dual-system breeding pig architecture to
select pig breeds suitable for regional markets according to the differences between the markets in north and south.. Meanwhile, the
company conducts differentiated allocation of its resources according to market regions, and actively establishes its presenc e in
regions where it has comprehensive strengths in terms of consumption, land, environment and logistics to preferentially build pig
breeding farms for piglet production. Over the past years, the average PSY of the company’s normal two-way cross-bred sow
production has been above 24, an industry-leading figure. In the fattening process of commercial generation, the company gradually
built fattening farms according to specific conditions of different regions and projects, and nowadays still focuses on the "company +
farmer household" cooperative farming model, supported by in-house integrated farming practices. In 2021, the company’s ratio of
integrated in-house farming to cooperative free-range farming was about 1:4. Along with gradual commencement and commissioning
of in-house fattening capacities in the second half of 2020, the ratio of integrated in-house farming will gradually increase in the
future and the company will realize a business presence centered on integrated in-house farming and supported by “company+ farmer
household” cooperative farming. In regions where the comprehensive advantages are not obvious but the company operates swine
feed business or has plans to build breeding pig farms but hopes to have suitable cooperative fattening farms that match its free -range
farming requirements once commissioned, the company would purchase piglets from other large pig raising companies or specialized
breeding pig companies phase by phase, while at the same time adopting cooperative farming mode l, thus achieving collaborative
development of its feed business and pig farming business or early development of cooperative farming households. But as the
company’s breeding pig farm construction and areas of presence gradually expanded and improved, the company’s piglet acquisit ion
business has now fully stopped and piglets used have all been replaced by homegrown piglets.
2. Division of duties in cooperative farming
In the cooperative farming, the company and farmers respectively invest different production factors, assume different duties ,
and share different earnings and risks. In terms of input of production factors, the company is responsible for the input of piglets,
feed, veterinary drugs, vaccines, etc., while farmers provide the input of fixed assets such as piggery. In addition, farmers need to pay
a breeding deposit and bear the costs of labor, water, electricity and fuel on fattening farms. In terms of division of duties, the
company is responsible for piglet supply, feed production, epidemic disease prevention and treatment, breeding technology guidance,
collection and sales, while farmers are only responsible for daily feeding and cleaning. In terms of earnings and risks, the company
bears the market price risk and enjoys the opportunity profit, while farmers neither bear the market risk nor enjoy the oppor tunity
profit. The returns are relative ly stable and not directly related to the market prices, but closely related to the breeding results. In
addition, from the perspective of the company, there is a risk that farmers don’t abide by the contract or the company’s guidance, and
sell pigs or use medication without authorization. However, as the scale of cooperative farming has been growing and cooperative
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
period became longer in recent years, in case of the aforesaid breaches, farmers will bear huge risk of bad faith, and the co mpany will
retain the breeding deposit and sue to the court for breach of contract. Therefore, such breaches are becoming increasingly less in real
life.
3. Pricing and settlement of the cooperative farming
When the company signs the contract of cooperative farming with farmers, a basic unit price is first formed according to the
market conditions at that time, which would change appropriately according to the latest market changes at the time of pig re covery
and settlement. When fattened pigs reach the marketable weight, they are weighed, and the basic price is formed by the base unit
price multiplying the average weight, before the settlement price is adjusted according to the specific weight of each pig that exceeds
or fails to reach the ideal weight range, marketing rate (i.e., the survival rate), rate of conforming products, feeding days, total weight
gain, end-to-end ratio of feed to pork, daily average weight gain, excessive consumption of feed and the other production indicators,
thus deriving the final breeding service fee.
4. Number and structure of cooperative farmers and their changes
Before the 2021 Semiannual Report was published, there were 1,975 free-range farming households with pigs on hand in
cooperation with the company, 11.83% less than that at the end of 2020. In the farming cooperation in 2021, the company continued
optimizing small-sized farmer households and replaced them with larger farmer households for upgrading. Therefore, although the
total number of cooperative farmer households fell somewhat from the end of 2020, the average size and quality of farmer
households further improved. From the perspective of scale of livestock on hand, farmers each with less than 500 pigs accounted for
about 0.76%, 14.24% less than that at the end of 2020; farmers each with 501-1,000 pigs accounted for 24.96%, 11.04% down from
that at the end of 2020; farmers each with more than 1,001 pigs accounted for 74.28%, 25.28% higher than that at the end of 2020.
From the perspective of farmers' regional distribution, according to the five regions divided by the Ministry of Agriculture for
ASF containment, farmers in the north region accounted for about 19%, 3% down from that at the end of 2020; farmers in the ea st
region accounted for about 24%, 14% down from that at the end of 2020; farmers in the south central region accounted for about
33%, 15% higher than that at the end of 2020; farmers in the southwest region accounted for about 14%, 2% higher than that at the
end of 2020; farmers in the northwest region accounted for about 10%, unchanged from that at the end of 2020.
(IV) Food Business
The company classified poultry slaughtering as white-feathered poultry business so as to strengthen its interaction with upstream
breeding operations. Therefore, its food business only includes pig slaughtering, processed meat products, central kitchen and other
segments.
Food business is the last stage before the value of agriculture and animal husbandry is embodied on the side of consumption in
the form of meat products. Among them, slaughtering, as a typical manufacturing industry, has developed for a long time towards
maturity in China. Moreover, due to the slow growth of the downstream meat consumption demand, there is a serious overcapacity of
slaughtering for a long time, as the average capacity utilization of slaughter houses of considerable size nationwide is merely about
30%. As previously explained in the description of pig farming business, there is little motivation to develop pig farming business in
parallel with large-scale industrial pig slaughtering business at the early stage of the industry Despite the increased ratio of
large-scaled farming in recent years, pig farming businesses and pig slaughtering businesses have been developing independently in
most cases. From the perspective of slaughtering plants, which often need to collect pigs through pig vendors, they would also face
the pressures of short-term shortage of pigs or overcapacity. The government's protection of the production motivation of the
breeding industry in rural areas and the stabilization of the consumer prices in urban areas also make the slaughtering industry face
the implicit dual price restriction in the upstream acquisition and downstream sales. The occasional happening of livestock a nd
poultry epidemics would also cause periodic fear of meat shortage and bring a negative impact to the industry. In addition, as a
labor-intensive processing industry, the rising cost of labor further squeezes the profit margin of slaughterhouses. Therefore, the new
growth opportunities of the pig slaughtering industry in recent years are to continuously optimize the process to improve the
production efficiency and gradually introduce automatic and semi-automatic equipment to replace labor force, when looked at from
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
within the industry. From the external perspective, on the one hand, the premium can be increased by improving the product mix,
including extending from slaughter and cutting with raw and fresh meat as the final product to the further processing of meat
products and even the production of prepared dishes with higher added value, and the shift from sales of frozen meat to that of the
chilled fresh meat; on the other hand, it is to improve the sales channels, that is, shifting from the traditional multilevel wholesale
channels to direct supply channels of supermarket chains, chain restaurants, food processing enterprises and other key accounts; the
opportunities also lie in cooperating with product optimization and channel optimization to strengthen brand building, promote the
transformation of unbranded meat into branded meat, and seek a greater presence in sales channels so as to obtain brand premium. In
addition, the gradual development of the cold chain logistics industry in China in recent years is also conducive to the sales and direct
supply of meat products in a fresher state to supermarkets, restaurants and other channels.
The processed meat products and the central kitchen are the downstream parts of slaughtering process, representing the
extension from simple slaughter and cutting to the conditioning and processing operations with a higher added value. Compared with
the slaughtering part, the processed meat products and central kitchen have higher gross profit rates and relatively stable prices, and
have been growing fast in recent years. However, due to longtime habits of Chinese consumers, the purchase of raw meat by Chinese
consumers still accounts for a very large proportion, while the ratio of meat products purchased remains relatively small. This means
the current overall market space for processed meat products is still limited. In recent years, the focus of food processing companies
has been on constantly developing new product forms, changing the consumption structure dominated by ham sausage in the past,
creating new consumption scenarios, stimulating more consumer demand for meat products, and expanding the overall market spac e.
Central kitchen is a typical direction in the exploration of these new forms and new scenarios. With prepared dishes as the main
products and catering companies as the main customers, it helps explore new growth opportunities through such product forms a nd
consumption scenarios which are more easily accepted by consumers. Of course, compared with the ordinary processed meat
products, central kitchen is more complex in product form, processing technology, preservation technology and supporting logistics,
and poses more demanding requirements for business management of companies. In recent years, although numerous companies,
especially catering companies, invested in central kitchen, many of them are poorly run and have created excess capacity in this
market segment in the short term. On the contrary, food manufacturers can gain unique advantages in the field of central kitchen with
their rich experience in factory management and lean production.
As hog is the main cost of pig slaughtering, and fresh meat is the main cost of processed meat products and central kitchen, the
selling prices of food business would change in the same direction as the prices of hogs, However, due to the alternative consumption
of meat food and the government’s efforts to stabilize consumer prices, the price elasticity of meat food is usually smaller than that of
hogs. When market prices go up, the food business will also, to a certain degree, bear the pressure of increased slaughtering cost (i.e.,
purchase prices of hogs) and raw meat cost; especially when the market prices peak, it means hogs are most undersupplied on the
markets and not only the slaughtering costs are the highest but also the amortized overheads due to low outputs. From 2017 to 2020,
the hogs in stock nationwide at the end of each year were 433 million, 428 million, 310 million and 407 million respectively. So, the
entire year of 2020 saw the lowest level of hogs in stock nationwide in recent years, causing considerable cost pressures to
downstream industries. The pig slaughtering industry, processed meat products and central kitchen industries still need to flexibly
control the inventories and reduce costs in a lean manner. In particular, the slaughtering industry also need to properly acquire hogs
while there are minimum hogs on hand, while at the same time paying close attention to the containment of ASF in pork and meat
products, in order to really make profits in the seemingly booming market.
The company's food business has a certain influence in China, and enjoys a leading position in specific regions. The company's
"Kinghey" branded pork was the designated supplier of the 2008 Beijing Olympic Games, the annual sales of "Meihao" branded pork
products’ rank the second in four southwest provinces, "Liuhe" branded poultry meat products are sold across the country and the
Porridge Jiahe central kitchen business is one of the largest central kitchens in Beijing market. Over the past years, the company
gradually opened a segment market of hotpot catering by starting with “Xiao-Su-Rou”deep fried pork slices and other products.
Overall, the company's food business and poultry slaughtering business are facing the same challenges of product upgrading and
channel upgrading, but unlike its poultry slaughtering business, which is the largest in , the food business also faces the c hallenge of
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
cross-regional market development. In these years, the company will also make full use of the existing capacity portfolio and
channels of white-feathered poultry, combined with the planned pig farming business, to drive its food business to grow in a larger
domestic market and help the company's food brand gradually grow from a local brand to a national one.
The company shall comply with the disclosure requirements set forth in “Shenzhen Stock Exchange’s Industry Information
Disclosure Guidance No. 1---Listed Companies Engaged in Livestock, Poultry and Aquaculture Businesses”.
II. Analysis of core competitiveness
(I) The company's core competitiveness in the feed business: Technological legacy coupled with innovative organization and
products allows the company to rapidly enhance its scientific research capabilities and bio-safety and performance of products so as
to meet the upgraded demand for breeding with a greater power of product. On the basis of scale barrier, the company moves towards
specialization and industrialization, while the efficiency increase and cost reduction brought about by accumulated strength are
beyond the reach of its competitors, making the moat wider and deeper.
1. Strong bargaining power and resource integration capabilities brought by the largest scale. The larger the scale of feed factory,
the lower the production cost per ton, which ensures decreased purchase cost of raw materials, therefore, scale is one of the m ost
essential competitive factors in the feed industry. The company's feed sales rank the first in China and the second in the world, and
feed production and sales now cover 25 provinces, municipalities and autonomous regions in China. The industry-leading production
and sales volume and the extensive market coverage enable the company to connect with domestic and foreign grain busine ss
magnates and large channels of the same magnitude, bringing strong bargaining power by virtue of its scale advantage. At the same
time, as the largest feed producer in China and one of the largest in the world, the company has easy access to cooperation with
multinational magnates, leading companies in other industries and local governments at all levels in various forms, suggesting a
salient advantage of resource integration.
2. The technological legacy plus organizational innovation allows the company to continuously improve its scientific research
capabilities. Through many years of accumulation, the company now has established the industry's largest feed nutrition and
ingredient database, works closely with several raw material suppliers at home and abroad, keeps track of information about quality
of feed ingredients nationwide, allowing the company to formulate the optimal combination of nutrition and cost in a timely manner
and reduce the negative impact brought by price fluctuation of raw materials. The company's feed research institute now has 69
bachelors, 184 masters and 36 doctors. The company has cutting-edge near infrared detection technology, and has created near
infrared databases comprising over 0.46 million sample spectrums, established near infrared analysis models covering 43 categories
of feed ingredients, 85 types of complete feed, 26 categories of vitamin premixed feed and 3 types of animal fat. In recent years, the
company won 6 national science and technology awards, 20 ministerial, provincial and municipal science and technology awards,
and owns 5 national key laboratories or centers, 4 provincial key laboratories or centers and 2 academician (postdoctoral)
workstations. The company has successively undertaken over 100 national, provincial and municipal key research and development
projects, including “13th five-year plan” key R&D projects of “Construction and Demonstration of China-EU Food Safety Process
Control System based on Digital Information Technology”, “Application and Demonstration of Green, Efficient and Safe Breeding
Technology for Aquatic Birds” and “Regulation and Mechanism formed by Daily Ration Composition and Feeding System for
Healthy and High-quality Meat of Livestock and Poultry”, and presided over Shandong Province’s key research and development
project of "Key Technology Research and Industrialization Promotion of Environment-Friendly Antibiotic-free Feed for Swine and
Poultry", earning the first prize of Shandong provincial animal husbandry science and technology award 2020 for its safe, efficient
and innovative technology research and pilot application of feed ingredient fermentation. “Development and Application of Key
Technologies of Feed Nutrition for High-quality Pork Production” was awarded the first prize of the 2020-2021 Shen Nong China
Agricultural Science and Technology Award, and the “Key Technologies of Healthy and Efficient Farming of Broilers and their
Application” was awarded the second prize of Shen Nong China Agricultural Science and Technology Award. In recent years, the
company applied for 2,158 patents and was granted 1.423 patents. In 2020, the company applied for 295 patents, including 93
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
invention patents. In the first half of 2021, the company applied for 152 patents, including 27 invention pa tents.
3. The procurement model is constantly upgraded, and the specialized procurement capabilities are continuously improved.
Since 2014, the company has further taken stock of and optimized its raw material procurement system, strengthened the centra lized
procurement at different levels in various forms, actively sorted out its supplier system through a new management platform, and
established strategic partnerships with COFCO, Sinograin, Jilin Wine, Xiangyu, Cargill, Bunge, Yihai, DaChan and other excellent
raw materials suppliers at home and abroad, which allow the company to access reliable, cost effective raw material supply upstream.
In the past two years, due to the China-US trade war and ASF, etc, the changes of the raw material market were intricate, but the feed
supply chain system has rapidly strengthened the raw materials market price research center, significantly improving the spec ialized
procurement capabilities and continuously upgrading the procurement models for corn, soybean meal and by-products. In terms of
corn procurement, as the number of the company’s factories licensed to import corn increases, the cost-reduction effect brought by
choosing low-price imported ingredients at the right time became increasingly apparent. In terms of soybean meal procurement, the
purchase was concentrated on leading companies to give full play to the advantages of centralized procurement, while reducing costs
through protein price difference, cross-regional arbitrage, bulk cargo logistics and precise dosing. In the first half of 2021, the
centralized procurement rate at the headquarters level reached 72%, 20% up from the previous year, the centralized procurement rate
of key varieties was as high as 95%, and the turnover rate of ingredient was also increased steadily. Meanwhile, the company actively
carried out supply chain financing business, significantly reduced financial costs, and realized the cumulative financing proceeds of
about 67.43 million Yuan in the first half of 2021, over 100% up year-on-year. In addition, the company will create an end-to-end
procurement operation system guided by digitization with a view to constructing a digital supply chain ecosystem for continuously
improving its core competitiveness in procurement.
4. Fully serving farmers, and maintaining closer relationship with downstream customers. Relying on its strong strength, the
company launched the "pig flourishing" project to provide small and medium-sized farmer households with comprehensive
supporting services such as technical and financial services through various forms of cooperation to help them continue pig farming.
The "everything flourishing" project, an extension from the "pig flourishing" project, was also tried out for other feed varieties such
as aquaculture feed, ruminant feed and so on, with satisfactory results, for example, fish flourishing, cattle flourishing, sheep
flourishing, etc. Through these projects, the company’s service and support to farmers greatly improved the service experienc e of
farmers and further solidified the partnership between farmers and the company.
5. The expansion of farming business makes the product structure more balanced. The large scale of farming increases the
bargaining power in the breeding operations, which means that it is increasingly important for feed companies to control the farming
operations. Since 2016, the company has gradually increased its pig farming business by adopting the "company + large farmers "
cooperation, etc. In the times of ASF, farming volume has rapidly increased in recent years due to strong bio-safety technologies in
the hands of major farming companies. Moreover, the company has also gradually increased the in-house feeding and outsourced
feeding of commercial generation table poultry in its white-feathered poultry business, and directly controls farmers through
multiyear co-breeding contracts. The company's feed business has strengthened the control over the farming operations through the
aforesaid extension of industry chain, while the synergistic effects of feed and farming have improved the profitability of the feed
business, with the product structure more balanced and the competitiveness greatly enhanced.
(II) The company's core competitiveness in the white-feathered poultry business: the company masters the proprietary core
technology of breeding, seeks continuous innovation in farming facility upgrading and data utilization and strengthens its control
over the market through rapid production and sales by leveraging its bargaining power on supply and sale.
1. In terms of breeding of breeding poultry, the company enjoys a remarkable leadership position at home with respect to
production technology management, cost management, production efficiency, and product quality, and the company has formed
systematic technology and management capabilities. The company's breeding hens each remained producing over 115 healthy
chickens in the past two years, and each breeding duck remained producing over 220 healthy ducklings, which are at the domest ic
leading level. Especially in terms of selection of breeding ducks, the company cooperated with the Institute of Animal Sciences of
CAAS to breed "Zhongxin" ducks with complete intellectual property rights, which broke the monopoly of foreign varieties and
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
filled the gap of domestic white-feathered meat duck breeding industry. Consumption-wise, "Zhongxin" ducks are characterized by
"high lean meat ratio, low sebum ratio and good meat quality". The ratio of breast and leg meat is as high as 28%, and the se bum
ratio is lower than 22%, which addressed the difficult problem that duck meat of some foreign varieties is "too fat and fishy" and not
suitable for Chinese taste. Farming-wise, "Zhongxin" Beijing ducks are characterized by fast growth, high feed conversion rate,
strong resistance to stress, easy feeding and high survival rate, as the ratio of feed to weight reaches 1.9:1 after 40 days of feeding,
with all production indicators reaching the international advanced level.
2. In terms of farming of commercial poultry, the company always maintains continuous innovation to go beyond traditional
farming bottlenecks in terms of farming model, equipment and management support, leading the industry development as an examp le.
In 2021, a total of 144 patents were filed, including 20 invention patents and 84 patents granted. The company built a digital farming
system to bring all production management process data from farms onto cloud to form a big data center in a way that bases onsite
management on evidence, while equipping farms wit automatic data acquisition and automatic equipment control systems, in an
effort to replace traditional experience-based farming with digital intelligent farming. The company set up large-scaled stage-wise
broiler breeding and fattening farms equipped with cages, feeding, heating and transit systems dedicated for the breeding and
fattening phases as well as bio-safety, feeding management, epidemic disease control and other field management schemes, a farming
model proven feasible through farming of 5 batches of nearly 1.00 million broilers, capable to effectively increase the shed operation
efficiency by 70%. To resolve issues with traditional manual duck harvesting such as difficult access to labor, low efficienc y, high
attrition rate and high costs, the company developed an automatic duck harvesting system that increases the efficiency by 150%,
reduces costs by 60% and lowers the attrition rate by 80%. Meanwhile, the company compiled 10-odd farming standards such as
“Equipment Maintenance and Servicing Standard”, “Standard Operating Technique for Three-dimensional Farming of
White-feathered Meat Ducks”, “Bio-safety Management Standard for Farms” and “Commercial Poultry Farming SOP”, which are
used to guide efficient production onsite.
3. In terms of poultry slaughtering, the company has the largest share of the white-feathered poultry slaughtering market in
China, enjoying a leadership position especially in the field of white-feathered meat duck, where it has a strong bargaining power
when facing the downstream markets. In terms of raw materials supply, as the main producing areas are concentrated in Shandong
and surrounding provinces such as Henan, Hebei, Shanxi, Liaoning, coupled with the fact that the company continued increasing the
ratio of in-house breeding of commercial generation in recent years, the company has strong bargaining power in poultry farming
contracts or market poultry acquisition in those regional markets. In terms of slaughtering and processing operations, the co mpany
presided over the formulation and revision of the industry standard "Operating Procedures for Livestock and Poultry Slaughtering -
Duck" by virtue of its largest scale of duck slaughtering in China and the leading technology level; In recent years, throug h
construction and transformation, the company increased the automatic and intelligent levels of its slaughtering plants, and also
strengthened the standardization and SOP development, while all of its plants constantly improve and optimize existing operat ions
and process standards in light of reality, thus resulting in remarkably increased flexible manufacturing capabilities and product
premiumization capabilities, and enhanced ability of fast production and fast sale. In terms of sales, the company further pr omotes
the policy of “setting sales targets by consumption, setting production targets by sales, and fast production and fast sale", which
allows the inventory turnover rate of products to remain at a high level, and overcame the adverse impact of cyclic fluctuations of
agricultural product prices on the company's operations to a certain extent.
(III) The company's core competitiveness in pig farming business
1. The clustered, integrated pig farming model highlights the cost advantage
The holistically planned clustered, integrated pig farming model at least configures grandparental farms and parental farms
within a cluster and will also configure fattening farms at the same time in the upgraded version of cluster called “Xiaolong” model,
thus achieving the aggregation of full matching of pig breeding process, talent sharing, environment-friendly technology optimization
and industry chain, with higher production efficiency and lower cost than the traditional farming model.
First, the industry-leading pig farm construction capabilities and advanced production technology help effectively reduce the
bio-safety risks of pig farms and ensure the healthy production of pig herds. The production technology and process are more in line
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
with the principle of whole-in, whole-out, pigsty matching, separate production of sows and weaned pigs, automatic regulation of
shed environment and reasonable planning of excrement and urine storage and transportation.
Second, the production efficiency is high, and each indicator is at the industry leading level. In terms of production of breeding
pigs, the company now cooperates with the best-run international breeding pig companies of PIC and Hypor to establish a
dual-system breeding pig architecture , which allows selecting suitable pig breeds according to the market differences between the
south and north China; in terms of breeding capabilities, the company adopts multi-angle combination of algorithm technology,
dynamic core group management technology and full-automatic breeding pig determination technology, all of which are the most
advanced breeding technologies in the world. Through cooperation with breeding experts in universities of the US and China, the
algorithm is constantly optimized, and the intensity of breeding is improved. In the clustered model, each cluster has its own core
propagation group, thus ensuring the bio-safety of breeding boars and the efficient production of piglets. In 2020, the total number of
piglets per pigsty, the number of piglets per pigsty and number of weaned piglets per pigsty of self-reproduced sows at the company
were all industry-leading.
Last, through systematic application of production and management technologies, the cost of fattening pigs has been
continuously reduced. In recent years, the company orderly implemented application and practice of various new technologies in the
industry, and formed a complete set of production management technologies. By standardizing the costing items and methods of all
branch companies and refining the weight gain cost mode l to realize the comparison of cost management, the company quickly
identified each branch's key indicators of cost control. Through the nine-stage scientific nutrition formulation of self-made feed for
precise feeding, coupled with the comfortable growth environments provided by best-run, automatic, intelligent and transparent pig
farms, the full cost of fattening of the company’s self-produced piglets has been kept at the industry-leading level. In the future, along
with further construction of the company’s self-raising fattening farms, the ratio of self-raising fattening will increase gradually.
2. Industry-leading bio-safety control technologies
After two years of exploration, 65 research results in 10 categories have been obtained in the field of ASF c ontainment. With the
closed-loop bio-safety containment system, the company won the battle of defense against ASF by stages, as the survival rate of
fattening has restored to nearly 90% from the ASF outbreak in the mid-2018 to the end of 2020, an industry-leading figure.
As for the ASF containment for pig farms operated by the company, the company has effectively contained the ASF through
transformation of physical facilities and establishment of a scientific ASF management system. In terms of physical facilities, the
original breeding pig farms have been actively transformed; all newly-built breeding pig farms were built according to the latest
safety standards for ASF containment, with a four-level containment system of red, orange, yellow and green zones in pig farms put
into use to effectively isolate ASF virus. In terms of management system, the company established an ASF containment organiza tion,
formulated the bio-safety management standards and management processes at all levels, established a complete set of scientific
containment work mechanisms and containment programs, set up a multilevel management system from the HQ to echelons and then
to frontline business unit, whereby the HQ directs the containment efforts across the board, the echelons provide daily tracking
reports, and all feed mills, breeding pig farms and slaughterhouses act in strict accordance with the standard ASF containment
policies. This, coupled with flight inspections, point inspections and video monitoring guided by the HQ, and the one-level
supervisory system for monitoring the execution process and verifying the results, fully realize implementation of unified standards
from top to bottom. Although the attenuated ASF outbreak at the end of 2020 and in early 2021 brought new challenges to the
original containment technologies, the company was still able to rapidly respond and timely adjust and upgrade its solutions, thus
rapidly reducing the impacts of the epidemic and keeping the overall containment level stable.
For the ASF containment on fattening farms centered on the cooperative breeding model, the company also carried out more
strict management according to the containment standards to ensure the safe production of hogs and production interests of farmers.
Firstly, the company subsidizes and assists farmers to complete the renovation and upgrading of sheds, so that the farming conditions
meet the ASF containment standards. Secondly, the ASF detection and monitoring was carried out throughout the fattening proce ss of
the family farms, including site test before providing piglets, transport vehicle test, feed plant test and materials test, with a timely
reporting policy formed in place. Thirdly, for biological assets and production safety, veterinary medicine management,
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
environmental management and other standards, comprehensive upgrade has been made according to requirements for ASF
containment, farmers are repeatedly trained, and the standards are fully implemented. The cooperative farmer's understanding of ASF
has been effectively deepened through a series of measures, and farmers were enabled to gradually act in accordance with the
standards through "communication, assistance, mentoring and inspection", thus effectively guaranteeing safe production of hogs.
3. Leading pigsty design capabilities for the future
The company has been following the concept of "meeting the needs of pigs, the needs of pig farmers, and the needs of
sustainable development" in the design of pig farms, so as to create scientific and automated, intelligent and transparent modern pig
farms both for the present use and the future needs, which are the starting point of comprehensive operational capabilities of
successful business. The present use means paying attention to the details of production requirements, scientific planning, and
eliminating waste. For example, the functional areas, pigstys and pens that match with the established production model; clea rly
defining the pig, material and other flows in a way that meet the efficiency and bio-safety requirements at the same time; meeting the
environmental needs of pigs in different climates and at different stages. Facing the future means focusing on sustainable
development needs. For example, intensive construction of pigsties in response to the scarcity of land; zero emissions of pigsty
construction; the intelligent and automated design of piggeries in response to increased labor cost.
4. Industry-leading environment-friendly treatment capabilities
The environment-friendly treatment at the plants consists of sewage treatment, solid manure treatment and treatment of sick or
dead pigs. In all treatment processes, the company has made available a separate odor treatment method in order to achieve the
environmental objectives that fully meet the national standar ds, and industry-leading environment-friendly treatment capabilities. In
terms of sewage treatment, the company adopts the "pre-treatment + UASB + two-stage A/O process", so that the effluents reach the
standard of farmland irrigation and allow direct discharge to farmland. The company's treatment method for returning biogas slurry to
farmland can make the sow bearing capacity of 1 mu of land reach 30 sows, far more than the industry average of no more than 3
sows, meaning the company only needs 400-500 mu of land to build a sow farm accommodating 12,000 sows. In terms of solid
manure treatment, the company adopts the method of vertical fermentation tank, which is closed throughout the process and occ upies
a small area. Solid manure produced by a farm of 12,000 sows can be treated in only 10-15 days; at the same time, it meets the
national discharge standards, and the fermentation process can reach a high temperature of 60-70℃, which can effectively kill the
pathogenic microorganisms in feces and avoid the spread of diseases. In addition, the vertical fermentation tank can also deal with
sick and dead pigs arising in the plant, thus enhancing the bio-safety and containment capabilities.
5. Continuously innovating in sales method and increasing the sales efficiency across the board
The company's self-raised commercial pigs are sold completely according to the holistically planned pig sales method, so as to
ensure the optimal prices of large pigs on the market. Apart from a small portion of hogs which can be transported to the
company-owned slaughtering plants for slaughter, other marketable hogs are sold through the "easy pig trading" and “Jubaozhu”,
both being hog trading platforms developed by the company. After more than one year's accumulation, the system of this trading
platform is becoming increasingly mature in algorithm and trading data, guiding pig sales through the generated pork price index,
forming regional price comparison and monitoring, and helping increase the company's average pig sales prices.
Although the company’s rapid scale expansion in the past year weakened its competitive power, and some good practices failed
to be replicated at newly-bulit pig farms, the company now takes a full transition to a stage of robust operation. The company is
gradually improving its business operation efficiency, reducing farming costs and restoring its original competitiveness by enha ncing
its internal management capabilities through many measures.
(IV) The company's core competitiveness in the food business: high-quality resources across the industry chain, traceability of
food safety, and gradual upgrading of brands and sales channels
1. In the terms of products: Safety, precise research and development, and flexible production across the industry chain. Relying
on the company's whole farming industry chain, the company’s food business can acquire safe raw livestock and poultry that is
controlled in the upstream operations of feed, breeding and farming, and truly achieve food safety from farmland to table through the
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
safe production in slaughtering and food processing operations, which allows the safest and most trusted fresh chilled meat to reach
dining tables of consumers. In 2018, the company established its food industry research institute and set up an excellent food research
and development team for product development. The strong research and development capabilities support the company to develop a
variety of To B and To C products for customers and consumers at the food end. The company is capable of standardized and
efficient production, has participated in the formulation of " GBT 9959.1-2019 Fresh or Frozen Pork and Pork By-products: Part 1:
Pork Slices" and other national standards, and constantly raises the level of automated and intelligent operations through construction
and transformation in recent years. The company also constantly strengthens standardization and SOP development, while its
factories constantly improve and optimize the existing operations and process standards in light of reality, re sulting in significantly
increased flexible processing capabilities and product premiumization capabilities.
2. In the terms of branding: a strong combination of parent and subsidiary brands created. In the context of consumption upgrade,
the food business is being established fast in a brand new manner. The "New Hope Food", as the parent brand, is supported by
high-quality resources across the agriculture and animal husbandry industry chain whether on the To B end "New Hope Liuhe" or To
C end "New Hope Food" , which makes the parent brand more viable. Meanwhile, “Kinghey”, “Liuhe”, “Meihao” and “Porridge
Jiahe”, as the subsidiary brands, have also been recognized by the customers and partners in the industry for many years. In recent
years, the company, relying on product development and channel promotion in a series of segment markets, created a whole new
brand positioning “Meihao exclusive for hotpot” and officially launched a high-end western-style low-temperature meat product
brand “Le matre charcutier" created with a European farming industry leader Cooperl in early 2021, which gradually won the heart
and mind of catering customers and consumers and will also help the company open new spaces for its food business.
3. In the terms of sales channels: The advantages of traditional channels are solid, while the emerging channels are growing
rapidly. The company has been operating the whole farming and food industry chains for many years, further consolidates and
strengthens its traditional circulation channels such as wholesale markets, farm markets and raw materials processing, while
synchronously upgrading and moving forward new channels in the context of intensified market competition and consumption
upgrade. At the To B end, the company focuses on the catering market, establishes specialized sales service teams, and provides
long-term services to Haidilao Hotpot, Kungfu Fastfood, Yunhaiyao Restaurant， Yuanjiyun Dumplings and other catering companies,
winning the honor of high-quality supplier many times. At the To C end, the company has made good progress in the supermarket
and e-commerce channels. In the terms of supermarket, we have established presence in Wal-Mart, RT-Mart, Yonghui, Carrefour,
Hema, Wumart, Metro and other national supermarket KAs, covering a total of over 5,000 stores. In terms of e-commerce, the
company has deeply penetrated JD and Tmall platforms. In 2021, “Meihao” won the first place in the category of quick dishes on
Tmall.com’s “618” shopping festival and “Meihao Homemade Deep Fried Pork Slices” ranked first on the list of repeat purchase
list and the top-rated list. Meanwhile, the company made quick entry into socia l media e-commerce platforms such as Pinduoduo and
Weimob, as well as content e-commerce platforms such as Kuaishou and Tik Tok to jointly fuel the rapid growth of “Meihao” brand in
the first half of the year. The company actively reached out into new reta il and new business formats, and carried out full cooperation
with Ali Retail System, JD New Channel and other emerging channel customers to make continuous innovation and upgrading of
products and supply chain. Relying on operations across the whole industry chain, the company will continue to optimize and
upgrade its channel structure, provide good value-added services through integration of internal and external resources, constantly
improve the premiumization capabilities for products and services, and build barriers to competition.
III. Analysis of main business
Overview
In recent years, the company has been adhering to the medium-and long-term strategy of "strengthening the feed business,
expanding pig business, refining meat and poultry business, providing excellent food, and deepening overseas operations", creating a
balanced portfolio of inter-industry livestock and poultry diversification and integration of agriculture and food in the industry. The
company is committed to becoming a high-quality blue-chip enterprise with stable growth, a modern enterprise that leads the
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
industry’s scientific and technological innovation, the vanguard of international operations for Chinese farming and food companies,
an investor-friendly company, and a wonderful company that actively fulfills social responsibility.
In the first half of 2021, when upheavals were seen in domestic farming industry, especially the pig farming industry, an ove rall
situation arose, where pig and poultry farming business worsened but feed an d food business turned favorable. In terms of pig
business, on the one hand, the industry supply continued rising dramatically. According to the Ministry of Agriculture statis tics, hogs
marketed in the first half of the year grew by 34% year-on-year and the fixed-point monitoring results of the first half of the year
showed fertile sows in stock grew by 30% year-on-year and hogs in stock grew by 29% year-on-year. The increased supply drove
the prices to fall remarkably, as the hog prices fell all the way from 36 Yuan/kg in early 2021 to the lowest point of 12 Yuan/kg in
June, a decrease of over 60%, even falling back to the low levels before this pork price cycle began ascending in March 2019 for a
time. On the other hand, the changed industry environment in recent years also caused remarkably increased cost of the pig farming
industry. According to related industry statistics, in the first half of 2021, compared with 2018, the pig raising cost generally
increased by 4.5 Yuan/kg due to rising prices of feed ingredients, increased input in ASF containment and increased input in manure
treatment; from the end of the previous year to the first quarter of this year, a new round of attenuated ASF outbreak in man y
northern provinces caused prevalent effects to farming companies and farming households in these areas; according to the MoA
statistics, from March to June of this year, the cost of mass-farmed hogs nationwide was 2,700-2,900 Yuan/pig, or about 22.5-24
Yuan/kg, while the cost of free-ranging pigs was 2,600-3,000 Yuan/pig, or about 22-25 Yuan/kg, meaning the whole industry has
begun suffering losses in May and June.
In terms of the poultry business, the rising market condition in 2018 and 2019 resulted in industry overcapacity, as the
grandparental breeding hens on hand, parental breeding hens on hand and sales volume of commercial-generation baby chicken
across the country in the first half of 2021 were all sustained at the highest levels in the past six years. On the side of c onsumption,
the rapidly declining pork prices coupled with weakened consumption demand caused by the COVID-19 allowed poultry meat prices
to remain low for a long period of time, making it more difficult for the poultry business to make profits.
In the feed business, the whole industry’s swine feed output increased by 71% year-on-year in the first half of 2021 along with
the rapidly recovering hogs marketed and on hand; In the feed business, the volume of swine feed produced in the industry increased
by 71% year-on-year in the first half of 2021 due to the rapidly recovering pig farming industry. Poultry feed sales stopped growing
in this year due to poultry farming volume having reached a historic high in the previous year, with a 6% year -on-year decrease in
poultry feed throughout the industry in the first half of the year. Stimulated by rapidly rising fish prices, the whole industry’s
aquaculture feed output grew by 10% year-on-year in the first half of the year, but there is structured difference among different
category segments, with decreased demands for ordinary aquaculture feeds and increased demands for famous, high-quality and
specialty categories. At the side of feed ingredients, the prices of corn, which is a major ingredient in feed, remained high , thus
continuously exerting pressure on the cost of the feed industry. Overall, the company faced more opportunities than risks on its feed
business in the first half of the year.
In its food business, the increased marketed hogs also drove the slaughtering business to grow, as the slaughtering volume of
designated pig slaughterhouses above a designated size grew by 45% year-on-year and pork production increased by 36%
year-on-year in the first half of 2021. Increased production helps slaughterhouses increase their capacity utilizat ion rate and reduce
costs, but pork prices also went down synchronously with pork prices. According to the MoA statistics, the average wholesale price
of pork nationwide fell from the highest point of 47 Yuan/kg in early 2021 to 19 Yuan/kg, an almost 60% decrease. This situation
contributed little to the profitability increase of slaughterhouses, but was beneficial to deep-processed meat products using raw and
fresh meat as ingredients to a certain extent.
Policy-wise, along with the full victory won in China’s decisive battle against poverty in late 2020, the No.1 central government
document issued in early 2021 reflected an overall shift of policy focus from the work related to “agriculture, rural areas, and
farmers” in the past two years to rural revita lization, as “accelerating resumption of hog production” that once appeared as a separate
section in the previous year’s No. 1 document went back into a subsection thereof this year, i.e., “accelerating the construc tion of a
modern farming system, protecting the basic production capacities of hogs and perfecting the long-acting mechanism for steady and
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
orderly development of the hog industry.” However, as the prices once again fell after resumption of capacities in the first half of the
year, causing losses to part of pig farms (farmers), the Ministry of Agriculture and other related ministries and commissions once
again jointly issued the “Opinion on Promoting Sustainable and Healthy Development of Hog Industry” in early August, laying down
a development objective of “substantially forming a new pattern of high-quality development of hog industry featuring efficient
output, product safety, resource conservation, environmental friendliness and effective regulation within the next 5-10 years to
significantly increase the industry competitiveness, remarkably enhance the epidemic and disease prevention and control abilities,
substantially perfect the policy assurance system and effectively alleviate the cyclic fluctuations of markets.” Under the guidance of
this policy, China’s farming enterprises will pay more attention to increasing their core competitiveness in the future and work to
achieve healthy growth through true high-quality development, instead of suffering P/L fluctuations simply following the cyclic
fluctuations of markets.
Despite the suddenly changed external environments that caused tremendous pressures, the company still copes with them
calmly while seeking changes actively. On every line of its business, the company continuously advanced organizational
optimization and upgrading, and further enhanced the construction of its middle office on its pig business in order to accomm odate
the remarkable and rapid expansion of its management scale previous year; in its feed business, the company set up a corporate-level
feed business management committee, which is also equipped with related middle office functions to make overall planning for its
domestic and overseas feed units and feed plants run as part of its pig business and poultry business, so as to more adequately
leverage the scale economy of its total volume of internal and external feed sales that exceed 20.00 million tons each year, as well as
level the management capabilities of each feed unit upwards; in its food business, the company continued advancing the operation of
its food business headquarters, enhanced the interaction between food business and poultry business on meat food sales and
collaboration among other regional and channel teams, while strengthening its middle office of food bus iness by starting with
“seeking, research, manufacture and promotion”. In terms of capital management, the company’s 8.15 billion-Yuan convertible
corporate bond project launched in the second half of the previous year was approved by CSRC in late April; the company also
successfully completed issue of 1.0 billion-Yuan renewable corporate bonds in early June, thus becoming the only private company
to successfully issue renewable corporate bonds since 2020 and also the first agricultural product manufacturer to successfully do so,
which helped the company broaden its financing channels, enhanced its short-term solvency and provided stable medium and
long-term funding support for it to survive the difficult period of the current bottoming of pork prices. Faced with fluctuations of the
company’s stock price and phase-specific operational difficulties, the company’s board of directors and management remain
confident in that the company once again launched a new round of repurchase in late January after completing a 800 million-Yuan
repurchase in early January that was started in the second half of the previous year, with nearly 230 million-Yuan repurchases
completed so far; the company’s management also started a plan in early May to hold additional shares in the company through
contractual PE fund, with nearly 160 million Yuan-worth additional shareholding completed so far.
Within the reporting period, the company achieved business revenue of 61.519 billion Yuan, 16.823 billion Yuan more
year-on-year, registering a growth rate of 37.64%; due to the rapidly declining pork prices, rising prices of feed ingredients,
attenuated ASF outbreak and depressed market condition of the poultry business, the company’s pig business suffered losses, c ausing
the net profits attributable to shareholders of the listed company in this reporting period to be 3.415 billion Yuan in deficits, but these
deficits included impairment loss accrued on various assets by the company according to the enterprise accounting standards a nd
prudent requirements, which had a total effect of a 1.080 billion Yuan decrease in current net profits.
(I) Feed business: organizational adjustment provides precise empowerment, with sales margin growing steadily.
The feed business is still a major pillar of the company, which can provide a stable profit base for the company in the fluctuating
price cycle of swine and poultry. In the first half of 2021, the company improved its customer service of the feed business, especially
of those key accounts. Despite the price of raw materials stay high, the company consistently adjusts its feed formulas to keep
competitive in price while meeting the dietary needs of the animals. The company also further optimized its organization, fully
leveraged its resource superiority, promoted business collaboration, and precise empowerment by establishing a feed business
management committee.
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
1. Strengthen customer service and perfect supporting infrastructure for both upstream and downstream of the industry chain.
The ASF significantly accelerated the process of livestock and poultry farming going big, and the demands of farming customers for
feed suppliers also gradually transitioned from a single source of feed supply to one-stop solutions. To seize the opportunities, the
company worked on increasing the sales volume to group and large customers as a main thrust of its feed business development,
advanced construction of bio-safe high-standard plants, formed more professionally capable “marketing + technology” team to
approach customers, actively matched customers with seedlings and animal healthcare resources of every major category of farming
while establishing many animal healthcare testing labs and providing customers with support in terms of bio-safety and epidemic
containment, etc.
2. Collaboration between procurement and R&D for optimized formula cost. In the first half of the year, the continuous zigzag
high levels of prices of corn and soybean meal as main feed ingredients exerted pressure on the cost of the company’s feed business.
While properly purchasing domestic ingredients, the company increased the purchasing ratio of low-price imported ingredients when
appropriate by leveraging the market condition research center’s ability to anticipate the price trends of ingredients, so as to cope
with the continuous high levels of domestic corn prices. The company also leveraged its technical expertise to continuously iterate
and promote daily ration formulas comprising low-price alternative ingredients such as wheat, sorghum and brown rice, and launched
a variety of formula categories such as non-corn hybrid daily ration, wheat-based daily ration and brown-rice-based daily ration
while satisfying animal nutrition requirements, allowing the company to rapidly and flexibly adjust its formulas and keep its cost
competitive even when ingredient prices fluctuate. In addition, the company developed a proprietary feed formula system in the first
half of the year, which was commissioned in early August and will make the company’s feed formulation more efficient and faster
and promote data sedimentation and multisystem interconnectivity.
3. Build a feed middle-office to aggregate organization capabilities. In the first half of the year, the company set up a feed
business management committee at the company’s headquarter to make overall planning for its domestic and oversea feed plants,
including those run as part of the company’s pig and poultry businesses. The committee is responsible for formulating strateg ic
direction, market panning, pricing mechanism and other related policies for externally-sold feeds. By setting up various middle-office
departments under the committee, the committee helps raise the level of specialized operation of various parts of the feed business
and intensifies the interaction among various parts so as to more adequately leverage the scale economy of total volume of internal
and external feed sales that exceed 20.00 million tons per year. In the first half of 2021, the centralized procurement rate at the
headquarters level reached 72%, 20% higher than the previous year, and the centralized procurement rate of key varieties was as high
as 95%. Meanwhile, the company actively carried out measures in the supply chain financing business, significantly reduced
financial costs, and realized the cumulative financing proceeds of about 67.43 million Yuan in the first half of 2021, an over 100%
year-on-year increase.
During the reporting period, the company sold 13.53 million tons of various feed products in total, 3.01 million tons more
year-on-year, or 29% up; 10.11 million tons of feeds were sold externally, 27% up year-on-year (a year-on-year growth of 21% in
national total feed output). Among them,2.65 million tons of swine feed were sold externally, 98% up year-on-year (a year-on-year
growth of 71% in national swine feed output); 6.54 million tons of poultry feed were sold externally, 10% up year-on-year (-8% up
year-on-year in national poultry feed output); 0.64 million tons of aquaculture feeds were sold, 29% up year-on-year (9% up
year-on-year in national aquaculture feed output) ;0.21 million tons of ruminant feeds were sold, 42% up year-on-year (18% up
year-on-year in national ruminant feed output); the company achieved business revenue of 32.827 billion Yuan, 10.241 billion Yuan
more and 45.34% up year-on-year.
(II) White-feathered table poultry business: holding fast to strategic marketing transformation and building up internal strength
for efficiency increase and cost reduction.
The white-feathered table poultry business is an important cornerstone of the company’s business growth and also an important
part of the company’s extension towards the downstream end of food. Since the beginning of 2021, the rapid recovery of hog
capabilities nationwide coupled with the impact of the COVID-19 resulted in weakened demands for poultry meat consumption and
caused the poultry price cycle to begin going down faster than the pork price cycle. In view of this, the company held fast to its
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
strategic direction, actively explored the best possible industry development model, optimized its channel structure on the sales side,
increased the percentage of key accounts and actively pursued marketing transformation to broaden the room for profitability, while
ensuring lean operations in terms of internal management and continuously improving operating efficiency.
1. Firmly advancing marketing transformation on the side of poultry meat and pursuing automation and digitalization on the side
of slaughtering for improved operating efficiency. In the first half of the year, the rapidly declining pork prices caused by continuous
expensing of pork production capabilities caused tremendous impacts on the consumption of poultry meat. The company
continuously pursued marketing transformation and channel sinking strategy by making greater efforts to develop various channels
such as food processors, restaurants, malls and supermarkets and new retail outlets and intensifying efforts to develop fresh products
and customized products for differentiated needs of the aforesaid channels on the one hand. Of them, in terms of sideline poultry
products typified by duck blood, the company has become the most essential supplier to major hotpot chain brands in China suc h as
Haidilao, and the “golden duck webs” that the company worked hard building also realized over 70.00 million Yuan in sales in the
first half of the year, now on its way to become a year-round 100 million-Yuan-worth single item as planned; on the other hand, the
company intensified its efforts to acquire nearby customers, reach nearby outlets, increase premium and make its poultry meat
products more profitable. The sales volumes from the aforesaid advantageous channels grew by 12% year-on-year. The company
created customer-hierarchical differentiated management standards and differentiated marketing and service strategies for its
integrated business units following the “whole chain”, “semi-chain” and “efficiency first” development models, while accelerating
automation upgrading and transformation efforts for its business units that match advantageous channels.
2. Solidly developing bases on the farming side to increase the ratio of direct supply and optimize launch cost. In order to match
its development strategies involving three models of “whole cha in”, “semi-chain” and “efficiency first”, and stabilize supply of
non-slaughtered chicken and duck ingredients, the company held fast to developing its self-run farming bases. In the first half of the
year, the company completed leasing, trusteeship and construction of 10 in-house commercial generation farms with additional
capacities equivalent to annual output of about 30.00 million birds. Facing the existing company-farmer cooperation system, the
company further optimized the ratio of direct supply in the first half of the year to sustain 100% in case of chicken business and rise
to 92% in case of duck business, 12% up from the end of the previous year.
3. Optimizing the seeding output rhythm on the side of breeding birds for strictly controling farming cost In the first half of the
year, faced with the fluctuating prices of chicken and duck seedlings, in terms of seedling output rhythm, the company optimized the
seedling output rhythm and controlled the best possible sale timing through agile operation sc heduling; in terms of cost control, the
company increased its operating efficiency through optimizing operation processes, increased the seedling survival rate by bu ilding
provenance health databases, optimized labor and energy costs by adopting and increasing the application of automated equipment
(automatic feeding, closed environmental control, automatic egg collection system, farming shed thermal energy recovery devic e and
other advanced technological equipment), and optimized its selling cost by selling seedlings via online digital marketing platforms.
During the reporting period, the company sold a total of 264 million baby chicks and baby ducks, 11 million more and 4% up
year-on-year, 220 million commodity chicks and ducks were sold, 21 million more and 11% up year-on-year; 352 million adult
chicks and ducks were slaughtered, unchanged year-on-year, indicating a further increased matching ratio of commercial generation
farming and slaughtering business; 0.8640 million tons of chicken and duck meats were sold, 40,900 tons less and 5% down
year-on-year; the company achieved business revenue of 9.209 billion Yuan, 130 million Yuan more and 1.43% up year-on-year.
(III) Pig farming business: building up internal strength for stabilized operation and adjusting paces to start a new journey
With the operation scale constantly expanding,, pig farming has become a core business that affects the company’s profitability
most. In the first half of 2021, the drastically dropping pork prices, rising prices of feed ingredients and a new round of attenuated
ASF outbreak affecting many northern provinces from the end of the previous year to the first quarter of this year all causedour pig
farming business to encounter extremely terriable external environments. Meanwhile, the company’s pig business managed over 200
subsidiaries with independent accountability in 2020, increasing 100% year-on-year. We managed nearly 1.20 million fertile sows,
three times more year-on-year; employees approached 45,000, 3.5 times more year-on-year. Such a leapfrog development, on the one
hand,seized the window of dual opportunity of market and policy in the last two years thus increasing the market share, formi ng a
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
balanced presence across advantageous regions of the country, facilitating the production resumption and supply assurance of hogs
across the country and laying a foundation for the next stage of operations; on the other hand, it also posed new requirements and
challenges to the management capabilities of the company. From the beginning of 2021, the company also fully shifted from a stage
of rapid expansion in the past two years to a stage of robust operation, where the company enhanced its internal management
capabilities through many measures, improved business operation efficiency, gradually reducing farming costs and survived the
difficult period of cyclic bottoming.
1. Adjusting the pace of development and controlling capital expenditure. By the end of the first half of this year, the bree ding
pigs on hand ,at breeding pig farms , exceeded 1.60 million, and the stock scale of fattening farms built in place also reached 6.00
million. Besides, fattening farms of 3.90 million pigs is currently under construction or to be built. On this basis, the capacity
portfolio also further improved, as the marketing rate of hogs accounted for nearly 20% of the total in the central and south region in
the first half of the year, increasing 100% form last year. The aforesaid capacities are sufficient to meet the needs for piglet
production and auxiliary in-house fattening operations for the next two years, so the company has now slowed down the construction
of new breeding pig farms.And the company flexibly scheduled the construction progress of fattening farms,based on the availa bility
of supporting facilities for fattening capacities in the regions where it operates.Also, we changed the previous self-built fattening
farms ,which temporarily used for breeding farms, now adjusted back to the fattening purpose according to production rhythm. The
company’s capital spending in the first half of the year fell by 46% from the second half of the previous year, and the Q2 capita l
spending also fell by 45% from the first quarter; The company’s startup cost in the first half of the year fell by 18% from the second
half of the previous year, and the Q2 startup cost also fell by 56% from the first quarter, with both the capital spending and startup
cost expected to be further decreased in subsequent periods.
2. Iterating containment measures to fight the attenuated ASF outbreak. From the end of the previous year to the first quarter of
this year, a new round of attenuated ASF outbreak in many Northern provinces caused prevalent effects to farming companies and
farming households. This round of attenuated ASF outbreak is characterized by extensive outside contamination, numerous
channels of spread, long latency periods and a long phase of effect, thus posing new challenges to the containment measures. Around
the Spring Festival, all officers of the company’s pig business unit including senior executives conducted field surveys in order to
strengthen the ASF containment efforts, to comfort the frontline employees.Meanwhile, at the levels of the head and teams, key
person were assigned to do ASF task ，they are supposed to provide prioritized assistance in those ] challenging regions In this
process, the company continuously summed up its experience and upgraded containment and decontamination methods, including
whole-population serum double-antibody and double-screening, application of thermal imagers and static attenuation and disinfection
of materials; and first added up its containment processes before subtracting in a way that avoids slackness resulting from prolonged
and excessively trivial containment processes, which helped restore normal production faster while ensuring containment, as well as
reduce bio-safety containment costs at the same time. With the aforesaid measures, the number of ASF-affected farms at the end of
the first half of the year has been kept below 1%.
3. Optimizing the organizational structure and assigning capable individuals back to production. As the company rapidly
expanded in the past two years, its pig farming team also continuously split up and expanded. As a result, many vertical teams
separately organized and managed. And managers of frontline units are responsible for development, construction and public af fairs.
When the company fully transitioned to a stage of robust operation, HR arrangements were also adjusted accordingly to focus
organizational strengths on production and emphasize more concentration and aggregation, thereby helping unified standards and
systems realize a full coverage both horizontally and vertically and facilitating rapid replication and adoption of best practices inside
the company. First of all, at the corporate level, with five middle offices of the swine business that started being built in late 2020, the
company further refined and strengthened the HQ function of pig business by, for example, spinning off a feed supply department
from the feed nutrition department in order for the former to focus on nutrition formula and feeding methods and for the latter to
focus on production and quality control of feed plants affiliated to the pig business, as well as conduct centralized procurement and
logistics in collaboration with the companywide feed system; the company also planned to extend a bio-safety route from its health
management department in order for the former to focus on technology research and development for epidemic prevention and
49
2021 Semiannual Report of New Hope Liuhe Co., Ltd
testing and treatment and for the latter to focus on supervising and guiding the implementation of containment measures. Sec ondly,
on the levels of vertical teams and operating regions, one the one hand, corresponding routes and jobs were added in conjunction
with the HQ function refining to ensure related work can be carried out level by level; on the other hand, the duties of deve lopment
and construction and public affairs that largely preoccupied general managers of various levels at the previous stage of development
were reallocated to the counterpart departments of the HQ for vertical management so as to allow general managers of various levels
to focus more on production and operations inside pig farms. Last, on frontline production units, skill certification was further
pursued, as the HQ enacted 73 standards and 15 certificates covering 5 work sections as well as supporting section-specific learning
hand cards in a unified manner to conduct online and onsite theoretical exams for more than 20,000 frontline production workers as
well as onsite operation certification inside pig farms. Exams and certifications are used to drive all employees to refresh themselves
on basic production skills and link the certification results to job adjustment and grade change, with a work permit system adopted to
help motivate teams and optimize the workforce structure. As the next step, the company will also extend its skill certificat ion efforts
from production units to health management, sales and other functional areas, and encourage all senior managers in its pig business
to participate in certification for an increased understanding of frontline practice.
4. Building up information systems and working hard on planning and operational control. For a long time, the company
maintained high production indicators, effective ASF containment and low cost. But after rapid expansion of management scale, the
former management model that relied too much on the elites couldn’t ensure various standard systems and good practices, formed in
the past, effectively replicating inside the company. In the second quarter of the year, the company started a project of building a
planning and operation management system, which, oriented towards the frontline production units, can generate daily plans based
on the scientific full-load rhythmical production requirements and pig population allocation inside pig farms, and then push and
distribute assignments to employees before work based on the production action specification and standards of each work section,
provide early warning and prompts for undesirably scheduled tasks in work and form evaluations timely based on work results a fter
work to help employees review and improve, so as to help the line managers increase their management efficiency and ensure orderly
conduct of production. Meanwhile, this system can also form data dashboard timely from the aforesaid plans and achievement da ta in
order for management teams at various levels to perfor m backend analysis, adjustment and deviation correction and to reduce the
deviations between plans and actual operation results. Currently, this system has completed the phase I test of business processes
related to producing sows in the pilot unit and he lped the pilot unit significantly increase production achievements and plan
attainment rates, expected to proceed with system development and test gradually for reserve sows, piglets and fattening pigs , in
addition to rollout to other units after stabilization proven through tests.
During the reporting period, the company sold a total of 0.5634 million breeding pigs and piglets and 3.8977 million hogs,
totaling 4.4611 million pigs, 2.3382 million more and 110% up year-on-year; the company achieved business revenue of 10.182
billion Yuan, 3.234 billion Yuan more and 46.55% up year-on-year。 Despite the rapidly falling prices, rising prices of feed
ingredients, the attenuated ASF outbreak and phase-specific management effectiveness dilution after the rapid expansion, which
affected the profitability of the company together, With the aforesaid adjustment and optimization measures, the company’s
production indicators in various aspects all showed apparent improvement; 35-day conception rate, matching and farrowing rate,
marketing rate and rate of acceptable products all rose gradually, the number of healthy piglets per pigsty and the number of weaned
piglets per pigsty reached 10 and 9.4 respectively in June, the average piglet weaning cost fell to 470 Yuan/pig in July, and the
average piglet weaning cost in several operating regions already fell below 350 Yuan/pig, all these improvements to be embodied
gradually in fat pigs to be marketed in the second half of the year.
（IV） Food business: Continuously expanding the product mix and actively developing KA channels
Food business is the direction of the company's long-term transformation and development. After entry into 2021, the company
continued expanding its product mix and its hotpot food material business has formed a sequence of orderly growth, with new
product series such as beef slice and meatball growing in succession under the trendsetting effect of deep fried pork slice. Meanwhile,
the company established its presence primarily in KA channels, as a newly-formed Catering Supply Chain team actively acquired
leading high-quality customers in the fields of hotpot restaurant chains, food manufacturers, KA supermarkets and new retail outlets,
50
2021 Semiannual Report of New Hope Liuhe Co., Ltd
etc.
1. Launch new hotpot food SKUs and get the product-line formed：The deep fried pork slice series has become an industry
benchmark in this category and continuously grew fast, with a 180% increase in sales revenue in the first half of this year. A series of
food ingredients suitable for hotpot scenarios such as beef slice, large-particle shrimp meatballs and luncheon meat developed well
once launched, which, together with pot-stewed and meat roll series products, formed an echelon sequence of benign progression,
thus solidifying a whole-new brand positioning “Meihao exclusive for hotpot”, gradually wining the heart and mind of catering
customers and consumers and greatly facilitating the development of hotpot chain customers. The company will continue reusin g
its channel resources accumulated from its hotpot ingredient business to replicate a growth model and develop “Meihao Kebab” and
other BBQ food ingredient products in an orderly fashion. In addition, the company officially launched a high-end western-style
low-temperature meat product brand “Le matre charcutier" created with a European farming industry leader Cooperl in early 2021,
which further enriched its product line and helped develop high-end channels.
2. To improve market penetration in Sichuan and to enter into more regions nationwide: On the one hand, the company
endeavors to penetrate throughout markets in Sichuan, stabilize its dominant presence at its stronghold, leverage its existing
customers in Sichuan to further penetrate sales outlets at county and township levels, and concentrate its marketing resources at
critical sales outlets to provide consumers with more valuable product mixes. On the other hand, the company continued accele rating
its expansion to the rest of the country, strengthened region-by-region management of sales teams, further divided markets outside
Sichuan into six operating regions of south, northeast and central China, Henan and Anhui, northwest and east China, set their sales
targets and fully empowered teams. In the first half of the year, the company established a food business marketing department to
help sales teams and distributors open markets through a series of measures such as pre-season tour of market and tasting events, as a
result of which 2,112 tier-2 downstream customers were newly acquired within half a year and revenue contribution of top 50
distributors were helped to increase by 14.5% year-on-year. In addition, the company continued expanding into tier-1 cities of
Beijing, Shanghai, Guangzhou and Shenzhen across the board by intensifying cooperation with leading KA supermarkets.
3. Focus on KA acquisition and emerging channels development：In 2021, we identified KA development as an important
driving force behind the channel transformation plan. At the beginning of the year, the company established a Catering Supply Chain
team in response to the industry trends, which has won bids for several important projects within half a year and fully leveraged the
advantageous supply capabilities of the company that maintain presence across the industry chain and primary focus on food sa fety.
In the future, the company will also build a food material supply chain system catering for more types of customers such as schools,
hospitals, major companies and special channels with safe, high-quality food ingredient services.
With deep fried pork slices as the “pacesetter”, the company brought hotpot food materials to over 90 of top 100 hotpot chains
nationwide. For its raw and fresh meat business, the company further expanded its KA pool by newly contracting with food and
catering companies such as Yuanjiyun Dumplings. In terms of C-end retail channels, the company established a dedicated KA
supermarket sales team to make overall planning for mall and supermarket business of its business units and make deal with national
KA malls and supermarkets such as Fresh Herma, RT-Mart, Wulmart, Walmart and Metro. In the first half of the year, sales of
processed food to KA supermarket channel grew by 220% year-on-year, and fresh meat sales grew by 29% year-on-year, showing
good growth momentums. In terms of e-commerce and new retail channels, the company won the first place in the category of quick
dishes on Tmall.com’s “618” shopping festival and Meihao homemade deep fried pork slices ranked first on the list of repeat
purchase list and the top-rated list. “Meihao” has become the 7th-level (the highest leve l) vendor on Tmall.com, and the company
also actively establishes its presence on many platforms such as pinduoduo.com, chengxinyouxuan.com and xsyxsc.com in order to
jointly fuel the rapid development of “Meihao” brand in new retail channels. In order to ensure rapid scale-up in e-commerce
channels, the company also further intensified cooperation with third-party specialized cold chain logistics companies such as SF
Express, Jiuye Supply Chain and Fresh Life Style Supply Chain Management to build up its presence in frontend warehouses
nationwide and continuously strengthen its supply chain distribution capabilities.
During the reporting period, the company sold 123,000 tons of pork products, 19,400 tons more and 19% up year-on-year; the
company sold 121,500 tons of various deep-processed meat products and prepared dishes, 26,300 tons more and 28% up
51
2021 Semiannual Report of New Hope Liuhe Co., Ltd
year-on-year, with a further increased ratio of deep-processed product sales; the company’s food business realized business revenue
of 4.474 billion Yuan, 339 million Yuan more and 8.18% up year-on-year.
Year-on-year changes in key financial data
Unit: Yuan
Year-on-year
The same period of
This reporting period increase or Reasons for change
the previous year
decrease
Mainly due to remarkable growth in
Business revenue 61,518,574,560.67 44,696,040,364.08 37.64% business revenue from feed, pig and
trade businesses of the company.
Mainly due to increased business
Operating costs 59,181,012,728.29 38,883,226,717.75 52.20% revenue and consequential increased
operating cost of the company.
Mainly due to increased size, business
Marketing expenses 886,165,806.70 645,291,464.41 37.33% revenue and consequential increased
costs of the company.
Mainly due to increased size and
Management expenses 2,071,241,942.81 1,620,715,240.33 27.80% consequential increased costs of the
company.
Mainly due to increased interest
Financial expenses 753,564,042.97 431,355,596.36 74.70% expense resulting from increased debt
financing scale of the company.
Mainly due to remarkably increased
profits from feed business and
Income tax expense 255,813,436.08 171,269,538.95 49.36%
consequential increased income tax
expense of the company.
Mainly due to increased R&D input
R&D input 147,076,799.89 103,889,170.64 41.57%
from the company.
Mainly due to decreased current
Net cash flows from operating profits and increased
-4,596,606,685.74 658,593,331.58 -797.94%
operating activities inventory and receivables of the
company.
Mainly due to decrease in net input of
long-term assets in the pig business of
Net cash flows from
-10,459,350,214.73 -15,567,369,290.18 32.81% the company in this period compared
investing activities
with the same period of the previous
year.
Net cash flows from
17,916,417,332.72 19,232,700,766.30 -6.84%
financing activities
52
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Mainly due to effects of a large
Net increase in cash
2,839,612,152.66 4,323,226,543.31 -34.32% increase in borrowings acquired by the
and cash equivalents
company in the corresponding period.
Due to increased insurance contract
Net insurance liability
14,883,920.78 9,814,421.35 51.65% reserve accrued by the guarantee
reserve accrued
company
Mainly due to increased stamp duty
Taxes and surcharges 103,141,924.10 77,628,934.48 32.87% resulting from additional loan contracts
and lease contracts of the company.
Due to increased current income of the
Other income 107,232,509.12 66,064,040.01 62.32%
company from government subsidies.
Income on change in Mainly due to changes in fair va lue of
-11,086,791.11 -4,111,949.63 -169.62%
fair value financial products of the company.
Mainly due to increased accounts
Credit impairment receivable and consequential increased
-77,108,559.38 -47,300,672.93 -63.02%
loss credit impairment loss accrued of the
company.
Mainly due to increase in impairment
Asset impairment loss -1,002,396,508.13 -2,555,550.61 -39,124.29% loss of consumptive biological assets
accrued.
Mainly due to effects of loss suffered
Income from asset by the company from disposal of
22,936,727.98 -65,147,148.15 135.21%
disposal productive biological assets in the
corresponding period.
Mainly due to increased revenue of the
Non-business revenue 53,491,540.63 31,392,988.99 70.39%
company from insurance indemnities.
Mainly due to increase in destruction,
Non-business scrapping and interim loss of
1,330,740,961.06 143,494,162.87 827.38%
expenditure productive biological assets of the
company.
Material changes in composition or source of profits of the company in the reporting period
□ applicable √ not applicable
There were no material changes in composition or source of profits of the company in the reporting period.
Composition of business revenue
Unit: yuan
This reporting period The same period of the past year
Year-on-year
Proportion of Proportion of
Amount Amount increase or decrease
business revenue business revenue
Total business
61,518,574,560.67 100% 44,696,040,364.08 100% 37.64%
revenue
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
By industry
Feeds 32,826,596,340.18 53.36% 22,585,863,819.30 50.54% 45.34%
Poultry business 9,208,733,591.23 14.97% 9,078,957,817.31 20.31% 1.43%
Pig business 10,181,674,908.62 16.55% 6,947,750,208.95 15.54% 46.55%
Food 4,473,503,994.85 7.27% 4,135,206,512.58 9.25% 8.18%
Commerce and trade 4,509,825,357.68 7.33% 1,721,078,828.70 3.85% 162.03%
Others 318,240,368.11 0.52% 227,183,177.24 0.51% 40.08%
By product
Feeds 32,826,596,340.18 53.36% 22,585,863,819.30 50.54% 45.34%
Poultry business 9,208,733,591.23 14.97% 9,078,957,817.31 20.31% 1.43%
Pig business 10,181,674,908.62 16.55% 6,947,750,208.95 15.54% 46.55%
Food 4,473,503,994.85 7.27% 4,135,206,512.58 9.25% 8.18%
Commerce and trade 4,509,825,357.68 7.33% 1,721,078,828.70 3.85% 162.03%
Others 318,240,368.11 0.52% 227,183,177.24 0.51% 40.08%
By region
Overseas 6,681,133,536.17 10.86% 4,696,266,485.34 10.51% 42.26%
Domestic 54,837,441,024.50 89.14% 39,999,773,878.74 89.49% 37.09%
Industries, products or regions that account for more than 10% of the company’s business revenue or operating profits
√ applicable □ not applicable
Unit: Yuan
Increase or Increase or Increase or
decrease in decrease in decrease in
business revenue operating cost gross margin
Business revenue Operating costs Gross margin
from the same from the same from the same
period of the period of the period of the
previous year previous year previous year
By industry
Feeds 32,826,596,340.18 30,555,569,387.68 6.92% 45.34% 46.85% -0.95%
Poultry
9,208,733,591.23 8,752,300,644.50 4.96% 1.43% 1.76% -0.30%
business
Pig business 10,181,674,908.62 10,840,863,115.86 -6.47% 46.55% 171.85% -49.07%
Food 4,473,503,994.85 4,421,045,486.02 1.17% 8.18% 20.58% -10.17%
By product
Feeds 32,826,596,340.18 30,555,569,387.68 6.92% 45.34% 46.85% -0.95%
Poultry
9,208,733,591.23 8,752,300,644.50 4.96% 1.43% 1.76% -0.30%
business
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
Pig business 10,181,674,908.62 10,840,863,115.86 -6.47% 46.55% 171.85% -49.07%
Food 4,473,503,994.85 4,421,045,486.02 1.17% 8.18% 20.58% -10.17%
By region
Overseas 6,681,133,536.17 5,665,190,394.40 15.21% 42.26% 42.34% -0.04%
Domestic 54,837,441,024.50 53,515,822,333.89 2.41% 37.09% 53.33% -10.33%
Data about main business of the company after the most recent adjustment according to the statistical specification at the end of
reporting period if the statistical specification of main business data of the company was adjusted during the reporting period
□ applicable √ not applicable
Remarks on causes of more than 30% year-on-year change in related data
√ applicable □ not applicable
The company’s business revenue from its feed business increased by 45.34% year-on-year, mainly due to remarkably increased feed
sales volume thanks to the greater efforts of the company to intensify feed product research and development and pursue digital
marketing transformation.
The company’s business revenue from its pig business increased by 46.55% year-on-year, mainly due to remarkably increased
volume of hogs marketed by the company.
The company’s gross margin on its pig business decreased by 49.07% year-on-year, mainly due to remarkably decreased selling
prices of hogs in this period compared with the corresponding period.
IV. Analysis of non-main business
√ applicable □ not applicable
Unit: Yuan
Percentage of total Remarks on reasons for Whether sustainable or
Amount
profits formation not
Mainly consisting of
investment income accounted
for and recognized under the
Investment income 1,176,596,066.35 -43.58% Yes
equity method due to holding
of equities in China Minsheng
Bank
Profit and loss from
-11,086,791.11 0.41%
change in fair value
Asset impairment -1,079,505,067.51 39.99%
Non-business revenue 53,491,540.63 -1.98%
Non-business
1,330,740,961.06 -49.29%
expenditure
55
2021 Semiannual Report of New Hope Liuhe Co., Ltd
V. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: Yuan
The end of this reporting period The end of the previous year Increase or
Percentage of total Percentage of total decrease in
Amount Amount
assets assets proportion
Cash at bank and
11,674,800,886.30 8.82% 8,799,264,356.20 8.04% 0.78%
on hand
Accounts
1,504,568,263.46 1.14% 865,340,970.83 0.79% 0.35%
receivable
Contract assets 0.00% 0.00% 0.00%
Inventories 19,654,525,975.42 14.85% 15,649,735,402.26 14.30% 0.55%
Investment
174,306,520.36 0.13% 364,645.04 0.00% 0.13%
properties
Long-term equity
23,538,638,058.14 17.78% 22,702,080,340.55 20.74% -2.96%
investments
Fixed assets 32,537,004,193.25 24.58% 28,861,009,355.16 26.37% -1.79%
Construction in
15,962,053,442.98 12.06% 11,006,466,489.26 10.06% 2.00%
progress
Right-of-use
6,324,700,984.83 4.78% 0.00% 4.78%
assets
Short-term
19,010,984,011.32 14.36% 10,399,072,204.60 9.50% 4.86%
borrowings
Contract
2,248,863,709.87 1.70% 2,285,698,452.30 2.09% -0.39%
liabilities
Long-term
32,294,983,344.43 24.39% 22,901,808,635.67 20.93% 3.46%
borrowings
Lease liabilities 5,113,375,251.89 3.86% 3.86%
Productive
9,722,917,996.68 7.34% 11,797,596,610.49 10.78% -3.44%
biological assets
2. Major overseas assets
□ applicable √ not applicable
3. Assets and liabilities measured at fair value
√ applicable □ not applicable
56
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Unit: Yuan
Accumulat
Current
Current profit ed fair Othe
provision Current
Beginning and loss from value Current sales r
Item for purchase Ending amount
amount change in fair changes amount chan
impairmen amount
value charged to ges
t
equities
Financial
assets
1.
Held-for-tradi
ng financial
assets
2,196,760.08 6,050,516.72 125,330,769.56 102,671,409.46 22,076,125.34
(excluding
derivative
financial
assets)
4.
Investments
in other 320,276,827.48 320,276,827.48
equity
instruments
Subtotal of
financial 322,473,587.56 6,050,516.72 0.00 125,330,769.56 102,671,409.46 342,352,952.82
assets
Total of the
322,473,587.56 6,050,516.72 0.00 0.00 125,330,769.56 102,671,409.46 342,352,952.82
above
Financial
16,850,229.73 -17,137,307.83 17,137,307.83
liabilities
Contents of other changes
Whether the measurement attributes of major assets of the company changed significantly during the reporting period
□ yes √ no
4. Restrictions on asset rights as of the end of the reporting period
Item Ending book value (Yuan) Cause of restrictions
Cash at bank and on hand 325,969,835.08 Margin
Used as collaterals for long and
Fixed assets 294,033,430.25
short-term borrowings
Used as collaterals for long and
Intangible assets 50,831,208.80
short-term borrowings
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
Used as pledges for short-term
Accounts receivable 11,012,274.60
borrowings
Used as collaterals for short-term
Consumptive biological assets 150,000,000.00
borrowings
Used as pledges for long-term
Long-term equity investments 837,091,597.65
borrowings
Total 1,668,938,346.38
VI. Analysis of Investments
1. General condition
√ applicable □ not applicable
Invested amount during the reporting Invested amount during the same period of
Extent of change
period (Yuan) the previous year (Yuan)
23,905,100,494.03 22,732,259,166.94 5.16%
2. Significant equity investments acquired during the reporting period
□ applicable √ not applicable
3. Ongoing significant non-equity investments during the reporting period
□ applicable √ not applicable
4. Investments in financial assets
(1) Investments in securities
□ applicable √ not applicable
The company had no investments in securities during the reporting period.
(2) Investments in derivatives
√ applicable □ not applicable
Unit: 10,000 Yuan
Name Rela Whe Initi Amount Endin Percenta Amount
Type of Purchase Sales
of ted-p ther al of g ge of of actual
derivativ Beginning amount amount
operat arty relat amo impairm investe ending profit and
es Start date End date invested within the within the
or of relati ed-p unt ent d invested loss
investme amount reporting reporting
derivat onsh arty of provisio amoun amount during
nt period period
ives ip trans deri n t in net the
58
2021 Semiannual Report of New Hope Liuhe Co., Ltd
invest actio vativ accrued assets of reporting
ment n or es (if any) the period
not inve compan
stme y at the
nt end of
reportin
g period
Future
s Non- Futures
broker relat and October January
No -627.17 12,533.08 11,667.52 0 -64.89 0.00% -1,759.69
age ed option 12, 2020 31, 2022
compa party contracts
nies
Interest
rate
Non- swap
Comm
relat and May 22, January
ercial No -838.18 0 -1,400.39 0 558.77 0.00% -3.44
ed foreign 2020 19, 2022
banks
party exchang
e
forwards
Total 0 -- -- -1,465.35 12,533.08 10,267.13 0 493.88 0.00% -1,763.13
Source of funding for
Self financed
derivatives investments
Involvement in litigations
Not applicable
(if any)
Date on which the board August 31, 2018
approval of derivatives
investment is announced August 31, 2020
and disclosed (if any)
Remarks on risk analysis and control measures of derivatives positions during the reporting
period (including but not limited to market risk, liquidity risk, credit risk, operational risk and legal
Remarks on risk analysis risk)
and control measures of I. Risk analysis
derivatives positions during Commodity futures hedging operation can effectively manage the purchase price risk of raw
the reporting period materials, especially reduce the impact of falling price loss caused by high inventories on the
(including but not limited to company when raw materials fall sharply, but there will also be certain risks:
market risk, liquidity risk, 1. Risk of abnormal price fluctuations: In theory, the futures market prices and the spot market
credit risk, operational risk prices of all the trade categories at the closing date will return to the same level. In the rare cases of
and legal risk) irrational market, the futures prices and spot prices might still not return at the closing date, thus
giving rise to a systemic risk event, which in turn affects hedging operation scheme of the company,
even causing losses.
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
2. Capital risk: If the amount of investment in futures trading is too large according to the
operating instructions issued by the company, it may lead to capital liquidity risk, or even result in
actual losses caused by forced liquidation due to insufficient time to supplement the margin.
3. Technical risk: Technical risk may be caused by incomplete computer systems.
In order to prevent the adverse impact of exchange rate and interest rate fluctuations on the
company's profits and shareholders' equity, the company needs to conduct capital transaction business
of value-preserved exchange rate and interest rate to reduce the risk exposure of foreign exchange and
interest rate, but at the same time there are certain risks:
1. Market risk: The difference between the contract exchange rate / interest rate and the actual
exchange rate / interest rate at maturity date will generate investment gains and losses in the
value-preserved capital transaction business; During the duration of the value-preserved capital
transaction business, there will be revaluation gains and losses in each accounting period, and the
cumulative value of the revaluation gains and losses at maturity date is equal to the gains and losses
on investment.
2. Liquidity risk: The value-preserved foreign exchange capital transaction business is based on
the company's foreign exchange revenue and expenditure budget, and matches the actual foreign
exchange revenue and expenditure to ensure that the company has sufficient capital for clearing at the
time of closing, or selects the derivatives for close-out netting to reduce the cash flow requirements at
maturity date; The value-preserved interest rate capital transaction business will all be closed based on
the net amount of interest rate difference.
3. Performance risk: The counterparties of the company in value-preserved capital transaction
business are all banks with good credit standing and maintaining long-term business relations with the
company, for which there is substantially no performance risk.
4. Other risks: When conducting business, if the operators fail to follow the prescribed
procedures for the operation of value-preserved capital transaction business or to fully understand the
derivatives information, the operational risks will occur; If the terms of the transaction contract are
not clear, the legal risks will be likely to occur.
II. Risk management strategies
Risk management strategies for commodity futures hedging:
1. Match the hedging business with the company's production and operation, and strictly control
the futures position.
2. Strictly control the capital scale of hedging, reasonably plan and use the margins, issue
operating instructions in strict accordance with the company's policies on futures trading
management, and conduct operations only after approval according to the regulations.
3. The company has established the Derivatives Investment Management Policy and the Futures
Management Policy, making clear provisions for hedging business, and set up a dedicated futures
operation team, dedicated futures operation monitoring team and corresponding business processes
for control through implementation of authorization and post constraints, internal audit and other
measures.
4. The warning mechanism for medium and long-term trends of major varieties has been
established. According to the monitoring mechanism of market price trends, the futures operation and
monitoring team of the company regularly predicts the future trends of major varieties in a certain
period, so as to ensure timely judgment and disposition of futures varieties in case of abnormal
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
fluctuations.
Risk management strategies for value-preserved capital transaction business
1. The company conducts value-preserved capital transaction business for the purpose of
reducing the impact of exchange rate fluctuations on the company, and prohibits any risky
speculations; The amount of the company's value-preserved capital transaction business may not
exceed the upper limit of the authorized amount approved by the board of directors or the general
meeting; the company may not engage in any leveraged capital transactions.
2. The business working group of the company shall conduct risk analysis on transactions before
carrying out the capital transaction business, and formulate and submit the transaction plans
(including capital transaction variety, term, amount, trading bank, etc.) and feasibility analysis reports
to the business leadership group.
3. The value-preserved capital transaction business contracts of the company shall be executed
after the business working group submits them to and obtain approval from the chief f inancial officer,
president and chairman.
4. The company shall sign contracts with trading banks with accurate and clear terms, and strictly
implement the risk management system to prevent legal risks.
5. The finance department of the company shall timely track the changes in open market prices
or fair value of capital transaction contracts, timely assess the changes in risk exposure of the traded
contracts, and regularly report to the risk control committee of the board of directors; if any abnormal
situation is found, it shall be reported to the risk control committee of the board of directors to prompt
the business working group to implement emergency measures.
6. The company's internal audit department shall conduct compliance audit on capital transactio n
contracts on a regular basis.
Changes in market prices or
product fair value of
derivatives that the
company has invested in
The hedging transaction variety of the company is the value-preserved capital transaction business for
during the reporting period,
the prevalent varieties in the domestic futures markets, for which the market transparency is high and
with the analysis of fair
the transactions are active, and the transaction prices and the intraday settlement unit price fully
value of derivatives to
reflect the fair value of derivatives.
disclose the specific
methods used and setting of
related assumptions and
parameters.
Remarks on whether the
accounting policies and
The accounting policies and accounting principles related to the company's derivatives transactions
accounting principles of the
have been implemented in accordance with the relevant provisions of the “Enterprise Accounting
company for derivatives
Standards—Recognition and Measurement of Financial Instruments” and the “Enterprise Accounting
during the reporting period
Standards—Hedging” issued by the Ministry of Finance of the People's Republic of China, without
changed significantly
any changes.
compared with the previous
reporting period.
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
The company has the Securities Investment Management Policy in place and the company’s
investments in securities are conducted while ensuring the security of the company’s investments,
daily operation and funds and will not affect the company’s normal turnover of funds or normal
conduct of its main business. While making investments in securities, the company should
continuously improve its business policies, further specify the control procedures for key moving
Special opinions of parts of investment and financing operations from authorization, execution, supervision to
independent directors on information disclosure, strengthen obligations and duties of directors, supervisors and senior
derivatives investments and executives and establish internal accountability system to enhance funds management of the
risk control of the company company’s investment and financing activities. The Company’s derivatives investments for the
purpose of hedging have been assessed by designated related department in terms of investment risk.
To put an end to speculation in the investment process, the company has established the Derivatives
Investment Management Policy and the Futures Management Policy. While conducting derivatives
business, the company should continue to enhance the professional competency and capabilities of
operating personnel and strengthen supervision.
VII. Sales of significant assets and equities
1. Sales of significant assets
□ applicable √ not applicable
The company did not sell any significant assets during the reporting period.
2. Sales of significant equities
□ applicable √ not applicable
VIII. Analysis of major subsidiaries and minority-owned companies
√ applicable □ not applicable
Major subsidiaries and minority-owned companies that have an impact on the company's net profits of more than 10%
Unit: Yuan
Company Compan Registered Total Business Operating
Main business Net assets Net profits
name y type capital assets revenue profits
Feeding, sale and slaughter of
pigs; agricultural science research
and experimental development;
Tibet promotion and training of related
Xinhao Subsidia technologies; production, 500,000,0 73,685,14 3,990,491,6 9,233,642, -3,709,202 -4,845,521,
Technology ry processing and sale of animal 00.00 0,113.88 04.96 280.25 ,388.43 443.14
Co., Ltd farming equipment; production,
processing and sale of compound
feed, concentrated feed and
concentrate supplements (the
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
aforesaid items and terms are
subject to license): import and
export business: project
investment and management;
science and technology exchange
and promotion services
Venture investment, investment
management, financial advisory,
New Hope wealth management consulting,
Liuhe Subsidia business reorganization 576,555,6 20,918,98 20,918,989, 1,108,947, 1,108,947,1
0.00
Investment ry consulting, market survey, credit 00.00 9,197.10 197.10 153.79 53.79
Co., Ltd investigation, technology
development and transfer,
technical consulting services.
Import and export business: sale
Shandong
of medicated feed additives;
New Hope Subsidia 3,458,823, 24,471,13 6,843,232,9 31,259,63 336,087,3 260,432,51
dealing in feed ingredients;
Liuhe Group ry 529.00 6,805.85 73.28 6,215.16 82.74 5.07
enterprise management consulting
Co., Ltd
services, etc.
Feed research and development:
Sichuan
wholesale and retail of feed
New Hope
Subsidia ingredients and feed-related 800,000,0 13,489,52 2,601,926,2 12,191,86 170,527,7 -22,613,16
Liuhe
ry products; planting of cereals and 00.00 6,482.74 33.63 0,541.89 24.71 6.70
Farming
other crops; sale of veterinary
Co., Ltd
drugs, etc.
Acquisition and disposal of subsidiaries during the reporting period
√ applicable □ not applicable
Way of acquisition and disposal of Effects on overall production,
Company name
subsidiaries during the reporting period operation and performance
Jiangsu Suxinyuan Feed Co., Ltd Share purchase Losses of 161,333.21 Yuan
Puyang New Hope Feed Co., Ltd Share purchase Profits of 435.15 Yuan
Changxing Heping Huatong Livestock Co., Ltd Share purchase Profits of 16,332.41 Yuan
Changxing Huatong Livestock Co., Ltd Share purchase Losses of 41,963.56 Yuan
Zhangjiajie Xinruixing Feed Co., Ltd Share purchase Profits of 2,232,065.98 Yuan
Hezhou Jiuding Farming Co., Ltd Share purchase Losses of 106,418.85 Yuan
Huzhou Haihuang Biotechnology Co., Ltd Share purchase Losses of 590,409.36 Yuan
Zibo Xinmu Mechanical Technology Co., Ltd Share transfer Profits of 6,494,745.48 Yuan
Qingdao New Hope Xinrong Technology Group
Established by investment Losses of 615,857.93 Yuan
Co., Ltd
Shen County Xinliu Farming Co., Ltd Established by investment No effects
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
Yingshan Xinyue Farming Technology Co., Ltd Established by investment No effects
Rongxian Xinyue Farming Technology Co., Ltd Established by investment No effects
Sichuan New Hope Liuhe Swine Breeding
Established by investment No effects
Technology Co., Ltd
Laibin New Hope Liuhe Farming Technology Co.,
Established by investment Profits of 38,278.55 Yuan
Ltd
New Hope Liuhe (Zibo) Agricultural Technology
Established by investment Profits of 34,014.63 Yuan
Development Co., Ltd
Wuwei New Hope Liuhe Feed Co., Ltd Established by investment Losses of 27,504.11 Yuan
Sishui Dasheng Breeding Co., Ltd Established by investment No effects
Qingdao Xinjia Biotechnology Co., Ltd Established by investment Profits of 95,562.91 Yuan
Guiyang Xinhao Farming Co., Ltd Established by investment No effects
New Hope Animal Nutrition Bangladesh Co., Ltd Established by investment Losses of 64,855.11 Yuan
Dingzhou Xinhao Feed Co., Ltd Established by investment Losses of 72,396.15 Yuan
Yulin Guoxiong Feed Co., Ltd Established by investment Losses of 851,169.11 Yuan
Huizhou Liuhe Feed Co., Ltd Established by investment Losses of 731,888.47 Yuan
Jiangmen Xinhui District Liuhe Biotechnology Co.,
Established by investment Losses of 199,191.31 Yuan
Ltd
Wushan New Hope Boar Breeding Technology Co.,
Established by investment No effects
Ltd
Heishan New Hope Feed Co., Ltd Established by investment Losses of 510.2 Yuan
Guangzhou Xinhe Biological Feed Co., Ltd Established by investment Profits of 527.71 Yuan
Fenxi New Hope Liuhe Food Co., Ltd Established by investment Losses of 9,683,649.81 Yuan
Guangxi Xinwang Supply Chain Management Co.,
Established by investment No effects
Ltd
Hainan New Hope Liuhe Supply Chain Technology
Established by investment No effects
Co., Ltd
Shandong Xiangan Livestock & Poultry Breeding
Established by investment Losses of 445.37 Yuan
Co., Ltd
Ziyang New Hope Feed Co., Ltd Established by investment No effects
Shibing New Hope Agricultural Technology Co.,
Established by investment No effects
Ltd
Ya’an New Hope Feed Co., Ltd Established by investment No effects
New Hope Davao Agriculture Inc. Established by investment No effects
Qingdao New Hope Herun Biotechnology Co., Ltd Established by investment Losses of 1,240 Yuan
Zouping Xinmu Meat Duck Breeding Co., Ltd Established by investment No effects
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
Lvliang New Hope Liuhe Farming Co., Ltd Established by investment No effects
Shandong New Hope Liuhe Farming Technology
Established by investment Profits of 661.83 Yuan
Co., Ltd
Zhecheng Liuhe Xingnong Feed Co., Ltd Deregistered Losses of 123.73 Yuan
Weiyuan Xinliu Farming Technology Co., Ltd Deregistered No effects
Fei County Liuhe Feed Co., Ltd Deregistered Losses of 5,460 Yuan
Kaili Xinyue Farming Technology Co., Ltd Deregistered No effects
MSFX Food Technology (Beijing) Co., Ltd Deregistered Losses of 41.99 Yuan
Julu Xinhao Farming Co., Ltd Deregistered No effects
Beichuan Xinchangle Farming Co., Ltd Deregistered Profits of 202.89 Yuan
Hainan Danzhou Xinliu Farming Technology Co.,
Deregistered No effects
Ltd
Sishui Dasheng Breeding Co., Ltd Deregistered No effects
Haiyang Xinhao Livestock Co., Ltd Deregistered No effects
Linqing Xinliu Farming Technology Co., Ltd Deregistered No effects
Remarks on major majority-owned and minority-owned companies
IX. Structured entities controlled by the company
□ applicable √ not applicable
X. Risks facing the company and countermeasures
I. Epidemic and natural disaster risks
The animal epidemic disease is the main risk faced in the development of livestock industry. There are three kinds of risks
arising out of the occurrence of epidemic disease. First, the occurrence of epidemic disease is likely to result in death of livestock,
and leads directly to the reduction in yield and drop in prices. Second, the occurrence and prevalence of epidemic disease on a large
scale easily influence the consumer psychology, lead to shrinking market demand, and also affect the feed production and operation.
Third, after the outbreak of some infectious epidemic diseases endangering the public health and safety, the government will take
lockdown and other measures to contain the spread of epidemic disease. These epidemic containment measures will seriously hinder
the transportation of feed, animal healthcare products and live livestock, and the workers returning to work, and have a great impact
on the production and operation of breeding industry. In addition, the outbreak of infectious epidemic diseases will force most
catering enterprises to stop doing business, some agricultural product markets to shut down, and consumers to reduce shopping
activities outdoors, resulting in reduced meat demand and consumption. For example, the African Swine Fever (ASF) with an
enormous impact on the entire industry broke out in 2018. As the ASF is characterized by long latency and high mortality after onset
of the disease, and the effective and reliable vaccine has not yet been developed successfully, coupled with the fact that it was also
the concentrated outbreak on a large scale in China for the first time, both the large-scale breeding enterprises and small farmers
lacked effective containment measures at the onset of epidemic, thereby suffering losses to varying degrees. From the late 20 20 to the
first quarter of 2021, attenuated ASF bounced back once again, especially hitting Hebei, Shandong and Henan and once again
causing prevalent effects to farming companies and farming households in these areas.
The COVID-19 outbreak at the beginning of 2020 also posed daunting challenges to the livestock and poultry breeding industry
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
in Chhina. The anti-epidemic measures such as lockdown, delay in return to work, suspension of live poultry trading, and shutdown
of slaughter houses led to unavailability of feed to farms and livestock farmers, newborn livestock nowhere to sell, inability to
slaughter livestock and poultry, and difficulties to conduct breeding production activities normally. After entry into 2021, despite the
stable epidemic containment situation at home overall, scattered episodes of the epidemic across the country and regional lockdown
policies would also cause hindrances to movement of personnel and materials related to business operations..
In terms of the natural disaster risk, the feed and slaughter are closely related to plant ing and livestock breeding industry, so the
natural disasters such as temperature anomalies, drought, flood, earthquake, hail, and snow disaster will all adversely affec t the
industry operation and development. The natural disasters occurring on the production bases of the company and surrounding areas
may cause substantial damages to production facilities or equipment, and the natural disasters and extreme climate may also drive the
prices of some feed ingredients and meats up. For example, serious flood disasters broke out in many places of South China in
summer of 2016, adversely affecting the planting, breeding, farm produce logistics, project implementation and meat prices along the
industry chain to varying degrees; in terms of planting, continuous catastrophic floods hitting some areas will result in decreased
output of feed ingredients, thus impacting the feed ingredients prices, while at the same time decreasing the quality of raw materials;
in terms of breeding, flood might cause pathogenic microorganisms buried in the land surrounding breeding farms to be exposed in
air and drinking water, and will result in spread of pathogenic microorganisms and trigger epidemic diseases. In addition, se veral
provinces hardest hit by the floods are major aquatic breeding areas in China, where the impact of floods not only would destroy
fishery production equipment but also is highly likely to wash off fish-barring facilities and bring away fish fries and adult fishes,
causing losses to economic income of farmers and thus affecting feed ingredients sales of the company; in terms of logistics, roads
are flooded and roadbeds and road surfaces destroyed wherever flood sweeps, forcing the freight costs of raw materials, feed,
finished products and breeding pigs to rise and the transport capacity down, causing pressures on the supply chain of the company; in
terms of project implementation, continuous rainstorms will also cause part of capital investment construction projects of the
company to suffer temporary shutdown, affecting the construction schedule; in terms of meat prices, flood would also impact the
meat supply and directly contributed to the rising prices of pigs, while the gap in meat prices between affected areas and unaffected
areas was growing, thus leading to increased allocation and transport of hogs, and resulting in spread of the pandemic to a certain
extent.
Risk countermeasures: In the face of animal epidemics, the livestock farms planned and constructed by the company’s breeding
base are normalized and standardized farms staffed with professional breeding technologists and equipped with strict anti-epidemic
measures to effectively prevent and control the occurrence of epidemic diseases. The company has also summarized some experie nce
and measures responding to major epidemic diseases through years of exploration and accumulation, which allow the company to
eliminates the impact of various epidemics by adjusting the product mix when appropriate, improving the product quality, cond ucting
deep market development actively and reducing the costs. Since 2014, the company has been guiding technicians to better serve
farmers by establishing animal healthcare laboratories in various areas, creating the cloud-based animal healthcare system and
conducting the monitoring and warning of epidemics and diseases in real time. In particular, in view of ASF outbreak in 2018, the
company formulated all-round and system-wide prevention and control measures, covering existing self-run pig farms, fattening
farms in cooperation with farmer households, new pig farms of the company, swine feed production units and internal animal
healthcare laboratories, with a view to ensuring proper prevention and control at the source of animal nutrition. Meanwhile, actively
participating in industry exchanges and exploring more effective containment methods with peers allowed the company’s bio-safety
epidemic prevention system, pig survival rate and marketing rate to achieve industry-leading levels. From the end of the previous
year to the first quarter of this year, a new round of attenuated ASF outbreak in many northern provinces is characterized by
extensive outside contamination, numerous channels of spread, long latency periods and a long phase of effect, thus posing ne w
challenges to the containment measures formed by the industry based on the past two years of ASF containment at the initial stage of
the outbreak. However, the company continued summing up its experiences and upgrading containment and decontamination
methods in the containment process, including whole-population serum double-antibody and double-screening, application of
thermal imagers and static attenuation and disinfection of materials; and first added up its containment processes before subtracting
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
in a way that avoids slackness resulting from prolonged and excessively trivial containment processes, which helped restore normal
production faster while ensuring containment, as well as reduce bio-safety containment costs at the same time. With the aforesaid
measures, the number of ASF-affected farms at the end of the first half of the year has been kept below 1%.
In response to the COVID-19, the company lost no time to react, formulated and carried out various containment policies and
conducted emergency disposition in a coordinated manner. Secondly, the company actively communicates with the government at all
levels, coordinates the transportation of goods such as livestock products, and raw and auxiliary materials of feed and products,
secures vehicle passes, and implements the green channel policy enacted by the government at all levels. Thirdly, the company
ensures sufficient procurement from feed plants and production supply through region-wide coordination, strengthens internal
support for poultry industry integration, arranges its employees to return to work rapidly and orderly, contributes to the adequate
supply of daily necessities across the country, adjusts its food industry strategy in real time and expands sales through supermarket
channel and online channel. Fourthly, in light of its business practices, the company compiled the epidemic containment manual,
published documents such as technical guidance on employee prevention and control and quarantine and guidance on engineering
control amid epidemics, makes the epidemic prevention arrangements in a targeted manner and strengthens employee safety
protection.
In response to natural disasters, although unable to rule out the possibility that serious natural disasters will occur in areas where
its subsidiaries operate, the company’s extensive business portfolio and presense both at home and abroad help ensure that the
company’s business as a whole will not be materially affected when natural disasters occur in particular regions. Especially for the
rainstorms and floods in south China, which have occurred frequently in these years, the company has accumulated a large wealth of
experience, established proven contingency plans and maintains sufficient flood prevention supplies in stock at all times, wh ich allow
the company to flexibly guide farmers through production plan adjustments when the flood season begins in preparation for disaster
relief together. At the same time, the company can also take the advantage of its nationwide presence to allocate funds, raw materials,
equipment, and staff timely and effectively to resume production as soon as possible and reduce the losses caused by natural
disasters.
II. Risk of feed ingredient price fluctuations
The cost of main feed ingredients for feed production accounts for more than 90% of total cost of feed production. In the past,
the proportion of feed business in the company’s revenue was large, but as the feed industry generally adopts the cost-plus pricing
method, the fluctuations in prices of feed ingredients can be partly transmitted to the downstream breeding operations, so as to relieve
the pressure from the rising prices of feed ingredients. However, with a growing percentage of livestock breeding business in the
company’s revenue, the rising prices of feed ingredients will have a growing impact on the company as a whole.
Since 2020, due to many influencing factors such as the COVID-19, changed purchase and storage policies and crop yield in
main grain-producing areas of various countries, the prices of main feed ingredients such as corn and soybean meal continuously rose,
with the average market prices of corn even approaching 3,000 Yuan/t in early 2021. Coupled with the continuous tension betwe en
China and the US, which brings great uncertainties to the bulk produce trade between the two countries and international trade of
feed ingredients in the future, the risk of price fluctuations will exist in the long term. Moreover, against the background of longtime
existence of ASF in China, the feed enterprises will reduce some high-risk feed ingredients for the safety of animal nutrition, such as
usage of corn, pig blood, and pig bone meal, so as to make the demand for raw materials concentrate on other types of raw materials,
which will also lead to rise in prices of such alternative raw materials.
Risk countermeasures: The company is the largest domestic feed enterprise with the scale advantages and a considerable say in
the raw material purchasing. The company started reorganizing and optimizing its raw material procurement syste m in 2017, combed
through its supplier system actively, established strategic partnerships with many domestic and overseas best-run raw material
suppliers, conducted the supply chain financing of various forms actively, and optimized its purchasing cost and related financial
expenses. In 2019, the company continued to drive transformations in terms of central purchasing of raw materials, strategic
purchasing channel optimization of partners, acquisition of corn produced in northeast and purchasing model upgrading, realizing a
greater purchasing value despite the challenges. The COVID-19 crisis in 2020 has caused phase-wise impact on the prices of feed
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
ingredients and feed additives, but the company intensified application of hedging tools to control the raw material price fluctuation
risk, while the company’s technology, purchasing, production and marketing departments worked closely with each other during the
response to the pandemic, with these experiences already summarized and applied into the daily opera tion management of the feed
business. In the first half of 2021, when prices of main feed ingredients such as corn and soybean meal continuously fluctuated at
high levels, the company actively purchased imported low-price ingredients and alternative ingredients such as wheat, sorghum and
brown rice while properly anticipating the market condition, in an effort to continually optimize ingredient costs.
III. Risk of price fluctuations of livestock and poultry
The finished products of livestock and poultry breeding business of the company mainly include baby chick, baby duck,
white-feathered chicken, white-feathered duck, breeding pig, piglet, and hog. Especially since 2016, the pig farming business of the
company has been growing rapidly, with 8.29 million hogs sold in 2020 and more than 500 million self-raised and outsourced
commercial generation chicken and ducks sold, which allowed the livestock and poultry breeding to contribute greater to the e ntire
revenue and profits of the company. Along with the further growth of breeding volume of the company in the future, the prices of
livestock and poultry will affect the levels of revenue and profits of the company even more remarkably.
In the first half of 2021, the domestic livestock and poultry markets saw remarkably delinking pork prices and low-level
fluctuations of poultry prices as a whole. in the first half of 2021, the marketing rate of hogs rose 34% year-on-year, and fixed-point
monitoring results at the end of the first half of the year showed that the fertile sows on hand grew 30% year-on-year, hogs on hand
grew 29% year-on-year and the prices of hogs fell all the way from 36 Yuan/kg in early 2021 to the lowest point of 12 Yuan/kg in
June, a decrease of over 60%, even falling back to the low levels before this pork price cycle began ascending in March 2019 for a
time. In terms of the poultry business, the rising market condition in 2018 and 2019 resulted in industry overcapacity, as the
grandparental breeding hens on hand, parental breeding hens on hand and sales volume of commercial-generation baby chicken
across the country in the first half of 2021 were all sustained at the highest levels in the past six years. On the side of c onsumption,
the rapidly declining pork prices coupled with weakened consumption demand caused by the COVID-19 allowed poultry meat prices
to remain low for a long period of time, making it more difficult for the poultry business to make profits.
Risk countermeasures: apart from the impact of sporadic epidemics, the fluctuations in prices of livestock and poultry mainly
depend on the periodic increase and decrease in breeding and supply quantities. As a result, the process of livestock and pou ltry
prices going down itself is a process of the survival of the fittest in the industry. Against this backdrop, the company still can generate
more revenue or suffer fewer losses than its rivals in the process of price decline as long as it increases its breeding efficiency and
makes its breeding costs lower than its rivals. When some partic ipants exit, the total supply declines and the prices rise again, the
company might gain a greater market share and a higher return on investment than before. In recent years, the company has bee n
committed to continuously increasing its breeding efficiency, and enjoying industry leadership in terms of production of healthy
young breeding poultry and PSY and full cost of pig breeding, which will ensure that the company will remain competitive during
the price fall of livestock and poultry. Although the company’s rapid scale expansion on its pig business in the past year caused some
of its competitiveness to be diluted phase by phase, and some best practices formed failed to be replicated in time at newly
commissioned pig farms, along with the company’s full transition to a stage of robust operation, the company is gradually improving
its business operation efficiency, reducing farming costs and restoring its original competitiveness by enhancing its interna l
management capabilities through many measures. On the other hand, unlike most of agricultural and livestock companies, the
company has slaughtering and processing business at the downstream part of farming and feed business at the upstream part of
farming, which happens to hedge against the farming process. The price decline of livestock and poultry means that the cost of raw
meat in the slaughtering and processing businesses falls too and its profit margin will be increased; the declining prices of livestock
and poultry also mean the farming volume of livestock and poultry is at high levels, which also helps increase the profitability of feed
business. Such an industry chain presence can moderately mitigate the effects of declining prices of livestock and poultry on the
company as a whole.
IV. Impact of environmental protection policies
In 2014, China started implementing the Regulations on Pollution Prevention for Large-scale Breeding of Livestock and Poultry,
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
as the government was strongly determined to keep livestock farms in line and new regulations we re enacted across the country to
demolish livestock farms, ban or restrict livestock farming activities. At the level of central government, the new “Environmental
Protection Law” was enacted in 2015; in 2016, the State Council issued the “13th Five-Year” Ecological Environment Protection
Program”, even more specifically requiring “local governments to close or relocate livestock farms (communities) and breeding
households within the banned areas according to law by the end of 2017”. In 2018, the first grou p of central environmental protection
inspectors conducted the “follow-up reexaminations”, as the efforts to investigate pollution caused by livestock farms were
intensified across the country, ordering some breeding households to shut down for environmental remediation or close once for all
due to their livestock farming facilities failing to meet the environmental standards or discharging wastewater beyond the se t
standards. These pressures from the environmental protection policies will force some livestock and poultry farms failing to meet the
environmental standards to exit the market, and lead to reduced breeding quantities, which will produce a certain impact on the
growth of feed business of the company and its acquisition of hogs and poultry for slaughtering business. Some branches and
subsidiaries of the company fail to meet the environmental protection requirements economically through hardware transformation,
or no longer have the market basis due to being located in the banned areas, which will lead to their shutdown. In the long run,
however, the exit of these outdated capacities for incompliance with environmental standards will allow the best-run producers that
remain in the industry to acquire higher profitability, which is still of a positive significance to the entire industry.
Risk countermeasures: in light of the changes of the breeding market, the company makes every effort to keep its stock under
control, makes full use of its industrialized supporting and integrated services by changing its feed marketing model, and strengthens
its cooperation with medium and large-sized farms and farmers that meet the environmental standards. While exploring a new way of
breeding, the company regards ecology, environmental protection, efficiency and safety as primary considerations in its project
design, helps farmers remodel and build sheds and stalls that meet the higher environmental standards, increase the profitability of
breeding business and actively drive the domestic livestock and poultry farming industry to grow healthily. On the other hand, the
company actively grows its inventories by cultivating new livestock and poultry farming bases in environmentally suitable are as
through construction, acquisition, joint venture and cooperation using its existing business portfolio across the country, thus ensuring
the stability of its breeding resources.
V. Risk of food safety
Food safety concerns the physical health and life safety of the general public, and is even a matter of life and death for food
companies. Occurrence of food safety problems or accidents would cause food companies to face claims, actions or related penalties
in a way that even affects their brands and reputations, thereby materially adversely affecting their business, financial con dition,
stock prices or business performance. The implementation of the revised “Food Safety Law” in of 2015 also means China has
brought its focus on food safety to an unprecedented level. The outbreak of ASF in 2018 raised even more demanding requirements
for food safety control. Although the ASF itself is not a zoonotic disease and the pork with ASF virus is not harmful at all to humans
after conventional heating and cooking, as there is not yet fully effective containment measure against ASF at present, and the pork
and its products are one of the main vectors of the virus, more costs are required to prevent and control ASF during the proc ess of
hog recovery and slaughter, pork transportation and vending. In 2019, the State Council issued the “Opinions on D eepening Reforms
and Strengthening Food Safety Efforts”, making clear the need to further beef up food safety efforts and ensure the “safety o n the
dining table” of the general public with ht most rigorous standards, the most stringent oversight, the most severe penalties and the
most serious accountability.
Risk countermeasures: the company has always been highly concerned about food safety by seriously ensuring food safety in
everything it does. In 2015, the company established its safety and environmenta l protection department to ensure safety, health and
environmental protection of its products, and upgraded the equipment in its “three-level” testing system, expanded the laboratories of
its branches and subsidiaries in terms of human and material resources, guaranteed the allocation and input of funds, resources and
personnel across the food industry chain, which upgraded the food safety organization management, equipment and facilities, process
management and key process control., So far, the company has created a food safety control chain from feed, livestock and poultry
breeding all the way to dining table. In 2014, the “Beiyouzi” branded duck meat produced by the company was the first in China to
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
achieve end-to-end traceability; in 2015, Chengdu Xiwang Food Co., Ltd, a subsidiary of the company, became one of the second
group of pilot companies for implementation of the national standard “food cold chain logistics traceability management
requirements”. In 2016, the company passed the food technical standard certification by the British Retail Council (BRC), and was
elected the Vice President of the China Council at the first plenary session of the Global Food Safety Initiative (GFSI) in , becoming
the first Chinese private enterprise to be selected as a member of the global board of directors of GFSI. In 2019, the 8th GFSI Focus
Day China organized by the company was held, marking the first time a private enterprise organized this event since GFSI bega n
holding the Focus Day China in 2012. At present, all food enterprises under the flag of the company have passed China-HACCP
certification, and more than 60 food companies are finishing the BRC and Global-GAP certifications in succession. In addition, the
company systematically explores the antibiotic-reducing and antibiotic-free possibilities in cooperation with multiple parties using
the GFSI platform resources, and actively drives the popularization of antibiotic-reducing and antibiotic-free successful cases.
VI. Risk of exchange rate fluctuations
Currently, the global purchasing of raw materials for feed production is going deeper, and the feed enterprises have been
increasingly affected by the exchange rate in terms of feed ingredients purchasing centered on foreign supply such as corn, soybean,
whey powder, fish meal and DDGS. At the same time, the company has larger foreign operations than its Chinese peers, and in the
foreign investment and overseas operations, the cross-border capital transaction and settlement amounts involved are growing, thus
making the company more vulnerable to exchange rate fluctuations. Since 2019, the bumpy China -US relations caused the
RMB/USD exchange rate to fluctuate frequently. Throughout 2020, the RMB exchange rate showed a trend of fall before rise as a
whole and went down in a zigzag manner due to the impact of the COVID-19 in the first half of the year, but a new round of rapid
appreciation started as China was the first to contain the pandemic and resumed work and business operations at a quickened pace in
the second half of the year. Such violent turbulences produced impacts on the foreign exchange management of the company. Besides,
in certain overseas countries where the company operates, the exchange rate of local currencies against USD depreciated remar kably
due to the COVID-19, political turbulence and foreign exchange policy adjustments, which also produced an adverse impact on the
company.
Risk countermeasures: In response to the growing needs for overseas raw material purchasing and investment and operation, the
company started building its Singaporean branch into an overseas commercial and trading center and investment and financing c enter
in 2016, actively conducted international centralized purchasing of raw materials, foreign direct financing, supply chain finance,
foreign exchange risk management and raw materials purchasing risk management on its Singaporean platform, in order to reduce
the impact of exchange rate fluctuations on its cash flow in overseas operations. Meanwhile, the company further strengthene d its
close connection and communication with overseas financial institutions, overseas agencies of the Chinese government and host
governments to analyze the trends of local currencies’ exchange rates in host countries in time and ease the adverse impact of
exchange rate fluctuations by means of direct investment in local currencies abroad, etc.
VII. Risk of human resources
The risk of human resources to the company is mainly manifested in the following four aspects. First, the pig farming scale of
the company is now at a phase of leapfrog development. As at the end of the first half of 2021, the company’s pig farming team
totaled 46,000 persons, and management radius of the company also increased as a result, therefore, there are tremendous pres sures
and challenges in terms of rapidly training and retaining a large number of pig raisers. If the personnel recruitment, training and
retention proves inadequate, potential risks will arise for the subsequent pig farm management and operation; second, as the company
transforms from a traditional agricultural and animal husbandry enterprise to a agricultural, animal husbandry and food integrated
enterprise, the company will face the risk of insufficient reserve of high-caliber operation and management personnel in new business
domains and of personnel in food retail, engineering technology, IT and other emerging fields; third, along with the rising human cost,
employee compensation has become an important factor in cost increase of the company; fourth, as a leading enterprise in China’s
agricultural and animal husbandry industry, the company has cultivated a large number of outstanding employees in its multiye ar
history, but the competition for human resources is intensifying due to the increasing competition in the industry and entry of new
players of different backgrounds into the industry over the past years, meaning the brain drain will cause losses to the company and
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
subsequently affect the sustainable development of the company.
Risk countermeasures: the company has looked at talent cultivation and organizational activation as a long-term strategic task of
the company. In terms of recruiting talented pig farmers, the company expanded its recruitment channel beyond college graduates
majored in agriculture and animal husbandry to recruit non-specialized college graduates and veterans. In terms of pig farmer
training, the company broke down its daily production processes according to standards and internalized them using IT means. It
offers specialized courses of different levels for general manager, farm managers all the way down to the newly recruited frontline
workers through in-house pig farming universities and pig industry research institutes that offer high-frequency learning, training and
teaching possibilities. Moreover, through the modern mentoring system inside pig farms and one-to-one mentoring and
intensification by sophisticated employees, the time to cultivate new employees has been greatly shortened. The company further
perfected its pig industry talent motivation system, whereby personnel at all levels in pig industry will receive industry-leading
economic return based on their value output. In addition, in order to reduce the pressure on human cost, the company intensif ied its
efforts to carry out projects such as pig farming in multistory buildings, intelligent pig farms and things of internet, which will
significantly increase its efficiency of personnel utilization.
The company also intensified its efforts to recruit talented people in strategic, new businesses, while actively conducting
cross-industry training and learning to enrich the knowledge structure and capability structure of its existing personnel. The company
realized a continuous increase in per capita efficiency by efficiency improvement, lean management, optimization of industry chain
design and organization flattening; created the professional manager development channel with survival of the fittest by cons tructing
the competition, selection and elimination mechanisms; and creates the growth community of employees and the company by
constructing reasonable evaluation and incentive mechanisms and value sharing mechanisms. In 2019, the company implemented its
restricted stock and stock option incentive plan for the first time to motivate its key technologists and key members of pig farming
teams more for increased cohesion and corporate competiveness and to fully motivate senior management personnel an part of ke y
employees of the company at work.
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
Section 4 Corporate Governance
I. Details of annual general meeting of shareholders and interim general meeting of
shareholders held within the reporting period
1. General meetings of shareholders during this reporting period
Ratio of
Session Meeting type participating Date held Date disclosed Meeting resolutions
investors
As detailed in the
“Announcement of the 2021 First
Interim General Meeting
Resolutions” (announcement No:
The 1st interim
Interim general 2021-22) published by the
general meeting 56.51% January 29, 2021 January 30, 2021
meeting company on China Securities
of 2021
Journal, Securities Times,
Shanghai Securities News,
Securities Daily on January 30,
2021.
As detailed in the
“Announcement of the 2020
Annual General Meeting
Resolutions” (announcement No:
2020 annual Annual general 2021-79) published by the
56.36% May 28, 2021 May 29, 2021
general meeting meeting company on China Securities
Journal, Securities Times,
Shanghai Securities News,
Securities Daily on May 29,
2021.
2. Interim general meetings of shareholders requested by preferred shareholders with voting rights
restored
□ applicable √ not applicable
II. Changes in directors, supervisors, and senior manage ment
√ applicable □ not applicable
Name Position held Type Date Reason
Chen Xingyao Vice president, CFO Appointed January 10, 2021 Appointed by board of
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
directors
Board secretary, chief strategic Appointed by board of
Lan Jia Appointed January 25, 2021
investment officer directors
Director of human resources Appointed by board of
Gao Li Appointed February 9, 2021
(chief HR officer) directors
Wang Shuhua Vice president, CFO Dismissed January 8, 2021 Personal reasons
Hu Ji Board secretary Dismissed January 8, 2021 Personal reasons
III. Profit distribution and converting capital reserves into share capital for the reporting
period
□ applicable √ not applicable
The company plans not to distribute cash dividends or allot bonus shares or transfer its capital reserve to share capital in the first half
of the year.
IV. Imple mentation of equity incentive plans, employee stock ownership plans or other
employee incentives
√ applicable □ not applicable
1. The 19th meeting of the 8th board of directors of the company, the 10th meeting of the 8th board of supervisors and the 1st
interim general meeting of shareholders of 2020 deliberated and approved the “Proposal regarding Cancellation of Part of Stock
Options and Repurchase and Cancellation of Part of Restricted Stocks”, agreeing to cancel a total of 105,000 stock options currently
granted to but not yet approved to be exercised by 2 incentive recipients who failed to meet the appraisal standards, with the currently
granted restricted stocks totaling 22,500 shares.
The 28th meeting of the 8th board of directors of the company, the 15th meeting of the 8th board of supervisors and the 1st
interim general meeting of 2021 deliberated and approved the “Proposal regarding Cancellation of Part of Stock Options and
Repurchase and Cancellation of Part of Restricted Stocks”, agreeing to cancel a total of 2,835,000 stock options granted to but not yet
exercised by 7 incentive recipients who separated from the company, repurchasing and cancelling a total of 1,215,000 shares of
restricted stocks already granted but not yet unlocked.
The company completed the repurchase and cancellation formalities for stock options and restricted stocks with CSDC
Shenzhen Branch on May 18, 2021, of which cancelled stock options totaled 2,940,000 and repurchased and cancelled restricted
stocks totaled 1,237,500 shares.
2. The 28th meeting of the 8th board of directors of the company, the 15th meeting of the 8th board of supervisors and the 1st
interim general meeting of 2021 deliberated and approved the “Proposal regarding the 2021 Restricted Stock Incentive Plan (Draft)
and its Summary” respectively, and the company publicized the list of incentive recipients under the 2021 stock incentive plan inside
the company, which was verified by the board of supervisors who made remarks on the publication of the list. The company’s
independent directors expressed related independent opinions, and legal firm and other intermediaries also issued reports.
The 34th meeting of the 8th board of directors and the 17th meeting of the 8th board of supervisors of the company deliberate d
and passed the “Proposa l regarding Adjustments to the List of Incentive Recipients and Quantities Granted under the 2021 Restricted
Stock Incentive Plan” and the “Proposal regarding First Grant of Restricted Stocks to Incentive Recipients” respectively, whe reby
given that 5 incentive recipients in the company’s 2021 restricted stock incentive plan voluntarily waived subscription for all
restricted stocks to be granted for personal reasons, the number of the first group of grantees under this incentive plan was adjusted
from 161 to 156, the quantity of restricted stocks for the first grant was adjusted from 29.63 million shares to 29.34 million shares,
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
and the quantity of reserved restricted stocks was adjusted from 1.724366 million shares to 2.014366 million shares. The firs t grant
date under this incentive plan is March 30, 2021 and 29.34 million shares of restricted stocks were granted to 156 incentive recipients
for the first time.
The 38th meeting of the 8th board of directors of the company and the 20th meeting of the 8th board of supervisors deliberated
and approved the “Proposal regarding Termination of <2021 Restricted Stock Incentive Plan (Draft)> and Related Proposals”,
whereby the company’s medium and long-term strategic objectives of growing and strengthening its pig farming business remain
unchanged, but along with the changed external environments this year, the company decided to terminate the implementation of its
2021 incentive plan and continue using repurchased shares for stock incentive of its core team in the future.
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
Section 5 Environmental and Social Responsibilities
I. Major environmental issues
Whether the listed company and its subsidiaries are key emitters announced by the environmental protection department
√ Yes □ No
Name Name of key Way Numb Distri Emission Pollutant emission Total Appro Exces
of pollutant and of er of bution concentration standards emissi ved sive
comp characteristic discha discha of implemented ons total disch
any or pollutant rge rge discha emissi arge
subsi outlets rge ons
diary outlets
Linyi Waste gases: Waste 6 (5 Waste COD：450mg/L Meat Processing COD： COD： None
Liuhe nitrogen oxides, gas: for gases: Total nitrogen： Industry Water 486t/a 486t/a
Food particulates, sulfur directl waste east 50mg/L Pollutant Discharge ; ;
Co., dioxide, hydrogen y gases, side of Ammonia Standard GB ammo ammo
Ltd sulfide, ammonia, discha 1 for the nitrogen：35mg/L 13457-92 nia nia
odor concentration rge waste factor Total phosphorus： Agreements with nitrog nitrog
after water) y 6mg/L sewage treatment en： en：
wastewater: treatm premis pH：6-8.5 plants 37.82t 37.82t
chemical oxygen ent es Suspended solids： Malodorous /a /a
demand, ammonia waste waste 200mg/L Pollutant Discharge
nitrogen, total water: water: BOD5：120mg/L Standard GB
nitrogen, total indire south Animal and 14554-93,
phosphorus, pH ct side of vegetable oils： Boiler Air Pollutant
value, five-day discha the 50mg/L Discharge Standard
biochemical oxygen rge west Nitrogen oxides ： GB 13271-2014,
demand, animal and gate 150mg/Nm3 Emission Standard
vegetable oils, Sulfur dioxide： for Boiler Air
suspended solids, 50mg/Nm3 Pollutants DB37
coliform bacteria. Fumes： 2374-2018
10mg/Nm3
Qiuxi Waste gases (sulfur Waste 7 Waste 100 mg/m3 of "Boiler Air COD COD1 None
an dioxide, nitrogen gas: (disch gases: sulfur dioxide, Pollutant Standard” 11.18t 1.18t/
Liuhe oxides) directl arge east 400 mg/m3 of (GB13271-2001) /a， a，
Kang wastewater (COD, y outlets side of nitrogen oxides, Class II Time ammo ammo
yuan ammonia nitrogen, discha of the PH6-9, Period nia nia
Food five-day rge origin factor SS70mg/L, third level standard nitrog nitrog
Co., biochemical oxygen after al 3t/d y COD300mg/L, in Table 3 of the en en
Ltd demand, treatm boiler, premis animal and “Meat Processing 0.5t/a 0.5/a，
particulates, animal ent discha es vegetable oils Industry Water ， sulfur
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
and vegetable oils, waste rge waste 100mg/L, Pollutant Discharge sulfur dioxid
SS, pH value) water: outlets water: ammonia nitrogen Standard” dioxid e
indire of 3 south 25mg/L, BOD5 （GB13457-92）, e 0.222
ct photo side of 100mg/L while meeting the 0.222t 2t/a，
discha oxidat the incoming water /a， nitrog
rge ion factor quality requirements nitrog en
machi y of Qiu County en oxides
nes, premis Sewage Treatment oxides 1.207t
additi es Plant 1.207 /a
onal t/a
discha
rge
outlets
of 6t/d
boiler
and 1
discha
rge
outlet
for
duck
feathe
r
drying
)
Lanli Waste gas: Waste 4 (3 East Ammonia Boiler Air Pollutant COD COD None
ng ammonia (ammonia gas: for side of nitrogen <5mg/L, Emission Standard 13.1t/ 13.1t/
New gas), hydrogen directl waste the COD<50mg/L; DB37 2374-2018, a, a,
Hope sulfide, odor y gases, factor Malodorous ammo ammo
Liuhe concentration, discha 1 for y Boiler<50mg/Nm Pollutant Emission nia nia
Hongj sulfur dioxide, rge waste premis 3, odor Standard GB nitrog nitrog
un nitrogen oxides, after water) es concentration 14554-93 en en
Food particulates, treatm 2000mg/Nm3， Notice on Approval 1.3t/a 1.3t/a
Co., Ringelmann ent and Publication of
Ltd blackness waste the Modification
Wastewater: COD, water: Forms for four
pH value, dissolved indire standards including
total solids, ct the Comprehensive
ammonia nitrogen discha Emission Standard
(NH3-N), total rge of Water Pollutants
nitrogen (N), total Along the
phosphorus (P), South-to-North
suspended solids, Water Transfer
BOD5, flow rate, Project of Shandong
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
animal and Province
vegetable oil, total (Luzhijianbiaofa
coliform groups. [2011] 35),
Meat Processing
Industry Water
Pollutant Emission
Standard GB
13457-92
Pingy Waste gas: Waste 3 (2 Waste Ammonia Boiler Air Pollutant CODc CODc None
i ammonia (ammonia gas: for gas: nitrogen 45mg/l Emission Standard r r
Refri gas), hydrogen directl waste north COD 500mg/l DB372374 -2018, 11.8t/a 11.8t/a
gerati sulfide, odor y gases, west Total phosphorus Malodorous Amm Amm
on concentration, discha 1 for side of 8mg/l Pollutant Emission onia onia
Plant sulfur dioxide, rge waste the Total nitrogen Standard GB nitrog nitrog
of nitrogen oxides, after water) factor 70mg/l 14554-93 en en
Shand particulates, treatm y Water Quality 0.23t/ 0.23t/
ong Ringelmann ent premis Standard for a a
New blackness waste es and Sewage Discharged Total Total
Hope Wastewater: COD, water: within into Urban Sewers phosp phosp
Liuhe pH value, dissolved indire the GB/T 31962-2015, horus horus
Grou total solids, ct factor Meat Processing 5.29t/ 5.29t/
p Co., ammonia nitrogen discha y Industry Water a a
Ltd (NH3-N), total rge premis Pollutant Emission Total Total
nitrogen (N), total es of Standard GB nitrog nitrog
phosphorus (P), the 13457-92 en en
suspended solids, compa 46.3t/ 46.3t/
BOD5, flow rate, ny a a
animal and waste
vegetable oil, total water:
coliform groups. northe
ast
side of
the
compa
ny
Qingd Waste gas: Waste 3 (2 Waste COD 50mg/l, Catering Industry CODc CODc None
ao ammonia (ammonia gas: for gas: ammonia nitrogen Oil Fume Emission r r
Tianr gas), hydrogen directl waste northe 5mg/l, total Standard 112.75 112.75
un sulfide, odor y gases, ast phosphorus 1mg/l, GB18483-2001, t/a t/a
Food concentration, discha 1 for side of total nitrogen Shandong Amm Amm
Co., sulfur dioxide, rge waste the 20mg/l, pH6-9 Provincial Boiler onia onia
Ltd nitrogen oxides, after water) factor Air Pollutant nitrog nitrog
particulates, dyeing treatm y Emission Standard en en
and finishing fumes ent premis No. 2 Modification 18.79 18.79
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
Wastewater: COD, waste es and Form for Ultralow 2t/a 2t/a
pH value, dissolved water: within Emission Total Total
total solids, indire the Luzhijianbiaofa nitrog nitrog
ammonia nitrogen ct factor [2016] No. 46, en en
(NH3-N), total discha y Malodorous 46.98t 46.98t
nitrogen (in N), rge premis Pollutant Emission /a /a
total phosphorus (in es of Standard GB
P), suspended the 14554-93
solids, BOD5, flow compa Comprehensive
rate, animal and ny Emission Standard
vegetable oil, waste of Water Pollutants
coliform groups water: in the Peninsula
north Basin of Shandong
west Province
side of DB37/676-2007,
the Water Pollutant
factor Emission Standard
y for Meat Processing
premis Industry GB
es 13457-92
Xiaoy Waste gas: Direct 4 (3 Waste Ammonia Boiler Air Pollutant CODc CODc None
i New ammonia (ammonia discha for gas: nitrogen：5 Emission Standard r r
Hope gas), hydrogen rge waste northe COD：50 GB 13271-2014, 9.358t 9.358t
Liuhe sulfide, odor after gases, ast Malodorous /a /a
Food concentration, treatm 1 for side Pollutant Emission Amm Amm
Co., sulfur dioxide, ent waste and Standard GB onia onia
Ltd nitrogen oxides, water) south 14554-93, nitrog nitrog
particulates, dyeing west Comprehensive Air en en
and finishing fumes side of Pollutant Emission 0.936t 0.936t
Wastewater: COD, the Standard /a /a
pH value, dissolved factor GB16297-1996,
total solids, y Surface Water NOx NOx
ammonia nitrogen premis Environmental 0.37t/ 0.37t/
(NH3-N), total es of Quality Standard a a
nitrogen (in N), the GB3838-2002,
total phosphorus (in compa Pollutant Emission
P), suspended ny Standard for Urban
solids, BOD5, flow waste Sewage Treatment
rate, animal and water: Plants GB
vegetable oil, Xiaoh 18918-2002
coliform groups e
discha
rge
outlet
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
south
of
factor
y
premis
es
Yishu Waste gas: Waste 1 North Malodorous CODc CODc None
i New ammonia (ammonia gas: west COD：500mg/L Pollutant Discharge r r
Hope gas), odor directl side of Total nitrogen： Standard GB 139.5 139.5
Liuhe concentration, y the 70mg/L 14554-93, 9t/a 9t/a
Food hydrogen sulfide discha factor Ammonia Water Quality Amm Amm
Co., Wastewater: COD, rge y nitrogen：45mg/L Standard for onia onia
Ltd pH value, dissolved after premis Total phosphorus： Sewage Discharged nitrog nitrog
total solid, ammonia treatm es 8mg/L into Urban Sewers en en
nitrogen (NH3-N), ent pH：6-8.5 GB/T 31962-2015, 2.8t/a 2.8t/a
total nitrogen (in waste Suspended solids： Meat Processing Total Total
N), total phosphorus water: 200mg/L Industry Water nitrog nitrog
(in P), suspended indire BOD5：250mg/L Pollutant Discharge en en
matter, BOD5, flow ct Animal and Standard GB 73.58t 73.58t
rate, animal and discha vegetable oils： 13457-92 /a /a
vegetable oil, rge 50mg/L Total Total
coliform groups phosp phosp
horus horus
8.41t/ 8.41t/
a a
Guant Waste gas: Waste 8 (2 North Discharge Standard CODc CODc None
ao ammonia (ammonia gas: boiler west COD：50 mg/L for Urban Sewage r r
Liuhe gas), odor directl discha side of BOD5：10mg/L Treatment Plants 8.115t 8.115t
Food concentration, y rge the Ammonia (GB18918-2002), /a /a
Co., hydrogen sulfide, discha outlets factor nitrogen：5mg/L Meat Processing Amm Amm
Ltd fumes rge ,4 y SS：10mg/L Industry Water onia onia
Wastewater: COD, after odor premis Animal and Pollutant Discharge nitrog nitrog
pH value, dissolved treatm discha es vegetable oils： Standard en en
total solids, ent rge 1mg/L (GB13457-92), 0.812t 0.812t
ammonia nitrogen waste outlets Farmland Irrigation /a /a
(NH3-N), total water: ,1 Water Quality SO2： SO2：
nitrogen (in N), indire fume Standard 2.276t 2.276t
total phosphorus (in ct outlet (GB5084-2005), /a /a
P), suspended discha and 1 Boiler Air Pollutant NOx： NOx：
matter, BOD5, flow rge waste Emission Standard 6.829t 6.829t
rate, animal and water (GB13271-2014), /a /a
vegetable oils, discha Catering Industry
coliform groups rge Oil Fume Emission
Standard (trial)
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
outlet) (GB18483-2001)
Binzh Waste gas: Waste 4 (3 Waste Malodorous COD No None
ou ammonia (ammonia gas: for gas: COD：50 mg/L Pollutant Emission 11.85t total
Liuhe gas), hydrogen directl waste east BOD5：10mg/L Standard GB /a quanti
Long sulfide, odor y gases, side of Ammonia 14554-93 ty
da concentration, discha 1 for the nitrogen：5mg/L Boiler Air Pollutant Amm requir
Farmi particulate matter, rge waste factor SS：10mg/L Emission Standard onia ement
ng sulfur dioxide, after water) y Animal and (DB37/2374-2018) nitrog s
Co., Ringelmann treatm premis vegetable oils： Boiler Air Pollutant en
Ltd blackness, nitrogen ent es 1mg/L Emission Standard 0.65t/
oxide waste Waste (GB13271-2014) a
Wastewater: COD, water: water: Meat Processing
pH value, dissolved indire west Industry Water
total solids, ct side of Pollutant Emission
ammonia nitrogen discha the Standard GB
(NH3-N), total rge factor 13457-92
nitrogen (in N), y Water Quality
total phosphorus (in premis Standard for
P), suspended es Sewage Discharged
solids, BOD5, flow into Urban Sewers
rate, animal and GB/T 31962-2015
vegetable oils,
coliform groups
Wudi Waste gas: odor Waste 1 South COD：500mg/L Malodorous CODc CODc None
Liuhe concentration, gas: of the Total nitrogen： Pollutant Emission r r
Xinya hydrogen sulfide, directl factor 70mg/L Standard GB 189t/a 189t/a
ng ammonia (ammonia y y Ammonia 14554-93 Amm Amm
Food gas) discha premis nitrogen：45mg/L Water Pollutant onia onia
Co., Wastewater: COD, rge es pH：6-8.5 Emission Standard nitrog nitrog
Ltd ammonia nitrogen after Suspended solids： for Meat Processing en en
(NH3-N), total treatm 300mg/L Industry GB 17.01t 17.01t
nitrogen (in N), ent BOD5：250mg/L 13457-92 /a /a
BOD5, pH value, waste Animal and Total Total
suspended solids, water: vegetable oils： nitrog nitrog
coliform groups, indire 50mg/L en en
animal and ct 26.46t 26.46t
vegetable oils discha /a /a
rge
Zoupi Waste gas: Waste 1 Sewag COD：500mg/L Malodorous COD: No None
ng hydrogen sulfide, gas: e Total nitrogen： Pollutant Discharge 18t/a, total
Liuhe ammonia (ammonia directl discha 70mg/L Standard GB Amm quanti
Livest gas), odor y rge Ammonia 14554-93 onia ty
ock concentration discha outlet nitrogen：45mg/L Water Quality nitrog requir
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
Co., Wastewater: COD, rge at the Total phosphorus： Standard for en： ement
Ltd ammonia nitrogen after northe 8mg/L Sewage Discharged 2.6t/a, s
(NH3-N), total treatm ast pH：6-8.5 into Urban Sewers Total
nitrogen (in N), pH ent corner Suspended solids： GB/T 31962-2015, phosp
value, animal and waste of the 200mg/L Meat Processing horus：
vegetable oils, water: compa BOD5：250mg/L Industry Water 0.3t/a,
BOD5, suspended indire ny Animal and Pollutant Discharge Total
solids, coliform ct vegetable oils： Standard GB nitrog
groups discha 50mg/L 13457-92 en：
rge 4.8t/a
Shanx Waste gas: Waste 4 (3 Waste COD：500mg/L Boiler Air Pollutant COD: COD: None
ian ammonia (ammonia gas: for gas: Total nitrogen： Emission Standard 405t/a 405t/a
Liuhe gas), hydrogen directl waste north 70mg/L DB37 2374-2018, , ,
Feed sulfide, odor y gases, west Ammonia Malodorous Amm Amm
Co., concentration, discha 1 for side of nitrogen：21mg/L Pollutant Emission onia onia
Ltd sulfur dioxide, rge waste the Total phosphorus： Standard GB nitrog nitrog
Food nitrogen oxides, after water) factor 8mg/L 14554-93, en： en：
Branc particulates, treatm y pH：6-8.5 Shandong 28.35t 28.35t
h Ringelmann ent premis Suspended solids： Provincial Boiler /a, /a,
blackness waste es 300mg/L Air Pollutant Total Total
Wastewater: COD, water: waste BOD5：250mg/L Emission Standard nitrog nitrog
pH value, dissolved indire water: Total salt content： "Ultra-low en： en：
total solids, ct northe 1600mg/L Emission Standard 94.5t/ 94.5t/
ammonia nitrogen discha ast No. 2 Modification a a
(NH3-N), total rge side of Form
nitrogen (N), total the Luzhijianbiaofa
phosphorus (P), factor [2016] No. 46,
suspended solids, y Comprehensive Air
BOD5, flow rate, premis Pollutant Emission
animal and es Standard
vegetable oil, total GB16297-1996
coliform groups. Water Quality
Standard for
Sewage Discharged
into Urban Sewers
GB/T 31962-2015,
Notice on the
Approval and
Publication of the
Modification List of
Four Standards,
Including the
Comprehensive
Discharge Standard
81
2021 Semiannual Report of New Hope Liuhe Co., Ltd
for Water Pollutants
Along the
South-to-North
Water Transfer
Project of Shandong
Province,
Luzhijianbiaofa
[2011] No. 35,
Notice on the
Approval and
Issuance of the
modification list of
four standards
including the
Comprehensive
Discharge Standard
for Water Pollutants
along the
South-to-North
Water Transfer
Project of Shandong
Province, adding the
limits of total salt
content indicator,
Luzhijianbiaofa
[2014] No. 7
Caoxi Waste gas: Waste 1 West COD：300mg/L Malodorous COG1 COD1 None
an hydrogen sulfide, gas: side of Ammonia Pollutant Discharge 5.84T/ 6T/a；
Liuhe odor concentration, directl the nitrogen：21mg/L Standard GB a Amm
Food ammonia (ammonia y factor pH：6-8.5 14554-93 Amm onia
Co., gas) discha y Suspended solids： Water Quality onia nitrog
Ltd Wastewater: COD, rge premis 300mg/L Standard for nitrog en
ammonia nitrogen after es BOD5：250mg/L Sewage Discharged en 8T/a
(NH3-N), treatm Animal and into Urban Sewers 7.04T/
suspended solids, ent vegetable oils： GB/T 31962-2015, a
BOD5, animal and waste 50mg/L Meat Processing
vegetable oils, total water: Industry Water
coliform groups indire Pollutant Discharge
ct Standard GB
discha 13457-92
rge
Jiaxia Waste gas: odor Waste 5 (4 Waste COD230mg/L, Malodorous COD COD None
ng concentration, gas: for gas: ammonia nitrogen Pollutant Emission 41.36t 45.56t
New ammonia (ammonia directl waste south 8mg/l, total Standard GB /a, /a
82
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Hope gas), hydrogen y gases, and nitrogen 11mg/L 14554-93 ammo Amm
Liuhe sulfide, particulate discha 1 for east Comprehensive Air nia onia
Food matter, malodorous rge waste sides Pollutant Emission nitrog nitrog
Co., Wastewater: COD, after water) of the Standard en en
Ltd ammonia nitrogen treatm factor GB16297-1996, 2.8t/a, 3.96t/
(NH3-N), total ent y Meat Processing total a
nitrogen (in N), waste premis Industry Water nitrog Total
total phosphorus (in water: es Pollutant Emission en nitrog
P), pH value, indire Waste Standard GB 76t/a en
suspended matter, ct water: 13457-92, 88.83
BOD5, animal and discha west Water Quality t/a
vegetable oils, rge side of Standard for
coliform groups the Sewage Discharged
factor into Urban Sewers
y GB/T 31962-2015,
premis Comprehensive
es Sewage Discharge
Standard
GB8978-1996
Yunc Waste gas: odor Waste 2 (1 Waste COD 34.4mg/I, Boiler Air Pollutant COD COD None
heng concentration, gas: for gas: ammonia nitrogen Emission Standard 6.5 t/a 32.4
Liuhe ammonia (ammonia directl waste north 1.03 mg/I DB37 2374-2018, Amm t/a
Food gas), hydrogen y gases, side of Malodorous onia Amm
Co., sulfide, particulate discha 1 for the Pollutant Emission nitrog onia
Ltd matter, malodorous rge waste factor Standard GB en nitrog
Wastewater: COD, after water) y 14554-93, 0.5t/a en
ammonia nitrogen treatm premis Comprehensive Air 5.4t/a
(NH3-N), total ent es Pollutant Emission
nitrogen (in N), waste Waste Standard GB
total phosphorus (in water: water: 16927-1996
P), pH value, indire west Comprehensive
suspended matter, ct side of Emission Standard
BOD5, animal and discha the for Water Pollutants
vegetable oils, rge factor Along the
coliform groups y South-to-North
premis Water Transfer
es Project in Shandong
Province DB37/
599-2006,
Modification Forms
DB37/599-2006 for
four standards
including the
Comprehensive
83
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Emission Standard
of Water Pollutants
Along the
South-to-North
Water Transfer
Project in Shandong
Province, adding the
limit of total
nitrogen
Ansh Waste gas: Waste 2 (1 Waste Suspended solids： Boiler Air Pollutant COD COD None
an particulate matter, gas: for gas: 300mg/L Emission Standard 153 153
Liuhe sulfur dioxide, directl waste north Coliform groups： GB 13271-2014, t/a t/a
Food nitrogen oxides, y gases, west 10000 /L Malodorous Amm Amm
Co., smoke blackness, discha 1 for side of Ammonia Pollutant Emission onia onia
Ltd mercury and its rge waste the nitrogen Standard GB nitrog nitrog
compounds, after water) factor （NH3-N）： 14554-93, en en
hydrogen sulfide, treatm y 30mg/L Comprehensive Air 15.3t/ 15.3t/
odor concentration, ent premis BOD5：250mg/L Pollutant Emission a a
ammonia waste es pH value：6.0-8.5 Standard
Wastewater: pH water: Waste Total dissolved GB16297-1996
value, COD, total indire water: solids：2000mg/L Comprehensive
dissolved solids, ct east Animal and Sewage Discharge
flow rate, ammonia discha side of vegetable oils: Standard DB
nitrogen (NH3-N), rge the 50mg/L 21/1627-2008,
suspended solids, factor COD: 300mg/L Meat Processing
BOD5, animal and y Industry Water
vegetable oils, premis Pollutant Emission
coliform groups es Standard GB
13457-92,
Water Quality
Standard for
Sewage Discharged
into Urban Sewers
GB/T 31962-2015.
Panji Waste gas: Waste 2 (1 Waste Suspended solids： Boiler Air Pollutant COD COD None
n particulate matter, gas: for gas: 20mg/L Emission Standard 45t/a, 45t/a,
Liuhe sulfur dioxide, directl waste north Coliform groups： GB 13271-2014, Amm Amm
Farmi nitrogen oxides, y gases, west 10000 /L Malodorous onia onia
ng smoke blackness, discha 1 for side of BOD5：10mg/L Pollutant Emission nitrog nitrog
Co., mercury and its rge waste the Ammonia Standard GB en en
Ltd compounds, after water) factor nitrogen 14554-93 7.2t/a 7.2t/a
hydrogen sulfide, treatm y （NH3-N）： Comprehensive Total Total
odor concentration, ent premis 8mg/L Sewage Discharge nitrog nitrog
ammonia waste es COD：50mg/L Standard DB en： en：
84
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Wastewater: pH water: waste Animal and 21/1627-2008, 13.5t/ 13.5t/
value, COD, total indire water: vegetable oils： Meat Processing a a
dissolved solids, ct northe 20mg/L Industry Water
flow rate, ammonia discha ast pH value：6.0-8.5 Pollutant Emission
nitrogen (NH3-N), rge side of Total nitrogen（in Standard GB
suspended solids, the N）：15mg/L 13457-92
BOD5, animal and factor
vegetable oils, y
coliform groups premis
es
Dong Waste gas: Waste 2 (1 Waste Ammonia Malodorous Cod:1 No None
e particulate matter, gas: for gas: nitrogen 4.32 Pollutant Emission 3.100 total
Liuhe sulfur dioxide, directl waste northe mg/L, Standard GB 000t/a quanti
Lvjia nitrogen oxides, y gases, ast COD 14554-93, ; ty
Food smoke blackness, discha 1 for side of concentration： Notice on the ammo requir
Co., mercury and its rge waste the 49mg/L Implementation of nia ement
Ltd compounds, after water) factor Odor：724 Special Emission nitrog s
hydrogen sulfide, treatm y Limits of Air en：
odor concentration, ent premis Pollutants in 1.300
ammonia waste es Beijing-Tianjin-Heb 000t/a
Wastewater: pH water: Waste ei Air Pollution ; total
value, COD, total indire water: Transmission phosp
dissolved solids, ct northe Channel Cities horus：
flow rate, ammonia discha ast (Ministry of 0.200
nitrogen (NH3-N), rge side of Environmental 000t/a
suspended solids, the Protection Notice ; total
BOD5, animal and factor No. 9, 2018) nitrog
vegetable oils, y Notice on Approval en：
coliform groups premis and Issue of the 13.50
es Modification Forms 0000t/
for four standards a
including the
Comprehensive
Emission Standard
for Water Pollutants
along the
South-to-North
Water Transfer
Project of Shandong
Province,
Luzhijianbiaofa
[2011] No. 35,
Water Pollutant
Discharge Standard
85
2021 Semiannual Report of New Hope Liuhe Co., Ltd
for Meat Processing
Industry GB
13457-92
Liaoc Waste gas: Waste 2 (1 Waste CODcr≤300mg/L, Malodorous COD: COD: None
heng particulate matter, gas: for gas: BOD5≤150mg/L, Pollutant Discharge 708.7 708.7
Liuhe sulfur dioxide, directl waste east SS≤200mg/L, Standard GB 5t/a 5t/a
Rong nitrogen oxides, y gases, side of NH3-N≤20mg/L, 14554-93, Amm Amm
da smoke blackness, discha 1 for the TP≤5mg/L, Announcement on onia onia
Farmi mercury and its rge waste factor TN≤45mg/L the Implementation nitrog nitrog
ng compounds, after water) y of Special Air en： en：
Co., hydrogen sulfide, treatm premis Pollutant Emission 63.78 63.78
Ltd odor concentration, ent es Limits for Cities in 75 75
ammonia waste Waste Beijing-Tianjin-Heb
Wastewater: pH water: water: ei Air Pollution
value, COD, total indire east Transmission
dissolved solids, ct side of Channel
flow rate, ammonia discha the Meat Processing
nitrogen (NH3-N), rge factor Industry Water
suspended solids, y Pollutant Discharge
BOD5, animal and premis Standard GB
vegetable oils, es 13457-92,
coliform groups Water Quality
Standard for
Sewage Discharged
into Urban Sewers
GB/T 31962-2015
Shenx Waste gas: Waste 4 (3 Waste CODcr 50mg/L, Malodorous COD: COD: None
ian particulate matter, gas: for gas: BOD5 10mg/L, Pollutant Emission 25.2t/ 25.2t/
New sulfur dioxide, directl waste within NH3-N 5mg/L, Standard GB a a
Hope nitrogen oxides, y gases, the Animal and 14554-93 Amm Amm
Liuhe smoke blackness, discha 1 for factor vegetable oils DB/372376-2013 onia onia
Qings mercury and its rge waste y 3mg/L Shandong nitrog nitrog
izhai compounds, after water) premis Provincial en： en：
Food hydrogen sulfide, treatm es Comprehensive Air 2.52t/ 2.52t/
Co., odor concentration, ent Waste Pollutant Emission a a
Ltd ammonia waste water: Standard No. 2
Wastewater: pH water: north Modification Form
value, COD, total indire side of Luzhijianbiaofa
dissolved solids, ct the (2016) No. 46
flow rate, ammonia discha factor Down Industry
nitrogen (NH3-N), rge y Water Pollutant
suspended solids, premis Emission Standard
BOD5, animal and es GB 21901-2008,
vegetable oils, Notice on Approval
86
2021 Semiannual Report of New Hope Liuhe Co., Ltd
coliform groups and Issue of
Modification Forms
for four standards
including the
Comprehensive
Emission Standard
for Water Pollutants
Along the
South-to-North
Water Transfer Line
of Shandong
Province "
Luzhijianbiaofa[201
1] 35,
Water Pollutant
Discharge Standard
for Meat Processing
Industry GB
13457-92
Yang Waste gas: Waste 3 (2 Waste Ammonia Malodorous COD: COD: None
gu ammonia (ammonia gas: for gas: nitrogen：5mg/L. Pollutant Emission 24.6t/ 24.6t/
Liuhe gas), hydrogen directl waste northe COD: 40mg/L. Standard GB a a
Luxin sulfide, odor y gases, ast of Total nitrogen: 14554-93, Amm Amm
Food concentration, discha 1 for the 15mg/L. Comprehensive Air onia onia
Co., particulate matter, rge waste factor Total phosphorus: Pollutant Emission nitrog nitrog
Ltd nitrogen oxide, after water) y 0.5mg/L Standard en： en：
sulfur dioxide, treatm premis GB16297-1996, 1.04t/ 1.04t/
Ringelmann ent es Notice on the a a
blackness waste Waste Implementation of
Wastewater: pH water: water: Special Air
value, COD, BOD5, indire northe Pollutant Emission
suspended matter, ct ast Limits in
ammonia nitrogen discha side of Beijing-Tianjin-Heb
(NH3-N), total rge the ei Air Pollution
nitrogen (in N), factor Transmission
total phosphorus (in y Channel Cities
P), animal and premis (Ministry of
vegetable oils, es Environmental
coliform groups, Protection Notice
anionic surfactant No. 9, 2018)
Notice on Approval
and Issue of the
Modification Forms
for Four Standards
87
2021 Semiannual Report of New Hope Liuhe Co., Ltd
including the"
Comprehensive
Emission Standard
for Water Pollutants
Along the
South-to-North
Water Transfer
Project of Shandong
Province"
Luzhijianbiaofa
[2011] 35,
Comprehensive
Discharge Standard
for Water Pollutants
along the
South-to-North
Water Transfer
Project in Shandong
Province: DB37/
599--2006,
Meat Processing
Industry Water
Pollutant Discharge
standard GB
13457-92,
Down Industry
Water Pollutant
Discharge Standard
GB 21901 -2008
Weifa Waste gas: Waste 2 (1 Waste COD 500mg/L , Shandong COD: COD: None
ng particulate matter, gas: for gas: Ammonia Provincial 225t/a 225t/a
Tianh hydrogen sulfide, directl waste north nitrogen 45mg/L, Comprehensive Amm Amm
ui ammonia (ammonia y gases, side Total phosphorus Emission Standard onia onia
Food gas), odor discha 1 for within 8mg/L, for Regional Air nitrog nitrog
Co., concentration, rge waste the Total nitrogen Pollutants en： en：
Ltd sulfur dioxide, after water) factor 8mg/L, DB37/2376-2013, 20.25t 20.25t
nitrogen oxides, treatm y Malodorous /a /a
Ringelmann ent premis Pollutant Emission Total Total
blackness waste es Standard GB nitrog nitrog
Wastewater: COD, water: Waste 14554-93, en： en：
ammonia nitrogen indire water: Boiler Air Pollutant 31.5t/ 31.5t/
(NH3-N), total ct south Emission Standard a a
nitrogen (in N), discha side DB37 2374-2018
total phosphorus (in rge within Water Pollutant
88
2021 Semiannual Report of New Hope Liuhe Co., Ltd
P), pH value, the Emission Standard
BOD5, suspended factor for Meat Processing
solids, animal and y Industry GB
vegetable oils, premis 13457-92,
coliform groups, es Water Quality
anionic surfactant Standard for
Sewage Discharged
into Urban Sewers
GB/T 31962-2015
Weifa Waste gas: Waste 5 (4 Waste COD 70mg/L , Malodorous COD: COD: None
ng ammonia (ammonia gas: for gas: Ammonia Pollutant Emission 667.7t 667.7t
Heshe gas), hydrogen directl waste north nitrogen 10mg/L, Standard GB /a /a
ngyua sulfide, odor y gases, west 14554-93, Amm Amm
n concentration, discha 1 for side of Catering Industry onia onia
Food fumes, Ringelmann rge waste the Oil Fume Emission nitrog nitrog
Co., blackness, after water) factor Standard DB37/ en： en：
Ltd particulate matter, treatm y 597-2006, 60.09 60.09
sulfur dioxide, ent premis Boiler Air Pollutant 3t/a 3t/a
nitrogen oxides waste es, Emission Standard Total Total
Wastewater: COD, water: east DB37 2374-2018 nitrog nitrog
ammonia nitrogen indire side Water Pollutant en： en：
(NH3-N), total ct inside Emission Standard 93.47 93.47
nitrogen (in N), discha the for Meat Processing 8t/a 8t/a
total phosphorus (in rge factor Industry GB
P), pH value, y 13457-92,
suspended solids, premis Water Quality
BOD5, coliform es Standard for
groups, animal and Waste Sewage Discharged
vegetable oil water: into Urban Sewers
northe GB/T 31962-2015
ast
side of
the
factor
y
premis
es
Luoy Waste gas: Waste 2 (1 Waste COD：70mg/L Catering Industry COD: COD: None
ang ammonia (ammonia gas: for gas: Ammonia Oil Fume Emission 10t/a 10t/a
Liuhe gas), odor directl waste east nitrogen：15mg/L Standard Amm Amm
Huiqu concentration, y gases, side of pH：6-8.5 GB18483-2001, onia onia
an hydrogen sulfide, discha 1 for the Total phosphorus： Malodorous nitrog nitrog
Food fumes rge waste factor 0.5mg/L Pollutant Emission en： en：
Co., Wastewater: COD, after y Suspended solids： Standard GB 2.43t/ 2.43t/
89
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Ltd ammonia nitrogen treatm water) premis 60mg/L 14554-93 a a
(NH3-N), total ent es BOD5：25mg/L Meat Processing
phosphorus (in P), waste Waste Animal and Industry Water
pH value, BOD5, water: water: vegetable oils： Pollutant Emission
suspended solids, indire south 15mg/L Standard GB
animal and ct west Coliform groups： 13457-92,
vegetable oils, discha side of 5000 /L Comprehensive
coliform groups. rge the Fumes： Sewage Discharge
factor 2.0mg/Nm Standard
y GB8978-1996
premis
es
Hebi Waste gas: odor Waste 1 North COD45mg/L， COD350mg/L， COD1 COD6 None
Liuhe concentration, gas: east ammonia nitrogen ammonia nitrogen 4.641 4.123
Zhizh ammonia (ammonia directl corner 0.5mg/L，total 35mg/L，total 5t/a， 2t/a，
en gas), hydrogen y of the phosphorus phosphorus 4mg/L， ammo ammo
Food sulfide discha factor 4mg/L，total total nitrogen nia nia
Co., Wastewater: COD, rge y nitrogen 35mg/L, 45mg/L, nitrog nitrog
Ltd ammonia nitrogen after premis en en
(NH3-N), pH value, treatm es 1.335 10.68
suspended solids, ent 9t/a 72t/a
BOD5, animal waste
and vegetable oils, water:
coliform groups, indire
total nitrogen(in N), ct
total phosphorus (in discha
P) rge
Laiw Waste gas: sulfur Waste 7 (6 Waste COD：500mg/L Malodorous COD: COD: None
u dioxide, nitrogen gas: for gas: Ammonia Pollutant Discharge 675t/a 675t/a
New oxides, soot, directl waste north nitrogen：45mg/L Standard GB Amm Amm
Hope ammonia (ammonia y gases, side of Total nitrogen： 14554-93, onia onia
Liuhe gas), hydrogen discha 1 for the 70mg/L " Provincial Boiler nitrog nitrog
Food sulfide, odor rge waste factor pH：6.5-9.5 Air Pollutant en： en：
Co., concentration after water) y Total phosphorus： Emission Standard 60.75t 60.75t
Ltd Wastewater: COD, treatm premis 8mg/L "Ultra-low /a /a
ammonia nitrogen ent es Suspended solids： Emission Standard Partic Partic
(NH3-N), pH value, waste Waste 400mg/L No. 2 Modification ulate ulate
BOD5, total water: water: BOD5：350mg/L Form matter matter
nitrogen (in N), indire north Animal and Luzhijianbiaofa ： ：
total phosphorus (in ct side of vegetable oils： [2016] No. 46, 0.2t/a 0.2t/a
P), animal and discha the 100mg/L Water Quality SO2:0 SO2:0
vegetable oils, rge factor Nitrogen oxides： Standard for .1t/a .1t/a
suspended solids y 200mg/Nm3 Sewage Discharged NOx:0 NOx:0
premis Sulfur dioxide： into Urban Sewers .406t/ .406t/
90
2021 Semiannual Report of New Hope Liuhe Co., Ltd
es 50mg/Nm3 GB/T 31962-2015 a a
Fumes：
10mg/Nm3
Dezh Waste gas: sulfur Waste 3 (2 Waste COD：500mg/L Boiler Air Pollutant COD: COD: None
ou dioxide, nitrogen gas: for gas: Ammonia Emission Standard 23.3t 23.3t
Liuhe oxides, soot, directl waste north nitrogen：45mg/L DB372374 -2018,
Zhika ammonia (ammonia y gases, side of Total nitrogen： Boiler Air Pollutant
ng gas), hydrogen discha 1 for the 70mg/L Emission Standard
Food sulfide, odor rge waste factor pH：6.0-8.5 GB 13271-2014,
Co., concentration after water) y Total phosphorus： Malodorous
Ltd Wastewater: COD, treatm premis 8mg/L Pollutant Emission
ammonia nitrogen ent es Suspended solids： Standard GB
(NH3-N), pH value, waste Waste 300mg/L 14554-93
BOD5, total water: water: BOD5：250mg/L Water Quality
nitrogen (in N), indire north Animal and Standard for
total phosphorus (in ct side of vegetable oils： Sewage Discharged
P), animal and discha the 50mg/L into Urban Sewers
vegetable oils, rge factor Ringelmann GB/T 31962-2015,
suspended solids y blackness：level 1 Meat Processing
premis Nitrogen oxides： Industry Water
es 150mg/Nm3 Pollutant Emission
Sulfur dioxides： Standard GB
50mg/Nm3 13457-92
Fumes：
10mg/Nm3
Feixia Waste gas: odor Indire 1 South COD：50mg/L Malodorous COD: COD: None
n concentration, ct side of Ammonia Pollutant Discharge 11.6t/a 11.6t/a
Liuhe ammonia (ammonia discha the nitrogen：5mg/L Standard GB Amm Amm
Huah gas), hydrogen rge factor Total phosphorus： 14554-93, onia onia
ai sulfide y 0.3mg/L Notice on Approval nitrog nitrog
Food Wastewater: COD, premis pH：6-8.5 and Issue of the en： en：
Co., ammonia nitrogen es Suspended solids： Modification Forms 1.16t/ 1.16t/
Ltd (NH3-N), pH value, 20mg/L for Four Standards a a
suspended solids, Total nitrogen： Including the Total Total
BOD5, animal 20mg/L Comprehensive nitrog nitrog
and vegetable oils, BOD5：10mg/L Discharge Standard en： en：
coliform groups, Animal and for Water Pollutants 14t/a 14t/a
total nitrogen(in N), vegetable oils： Along the Total Total
total phosphorus (in 3mg/L South-to-North phosp phosp
P) Coliform groups： Water Transfer horus: horus:
10000 /L Project of Shandong 0.63t/ 0.63t/
Province a a
Luzhijianbiaofa
[2011] No. 35,
91
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Water Pollutant
Emission Standard
for Meat Processing
Industry GB
13457-92,
Comprehensive
Discharge Standard
for Water Pollutants
Along the
South-to-North
Water Transfer
Project in Shandong
Province DB37/
599-2006,
Modification Forms
DB37 / 599-2006
for Four Standards
including the
Comprehensive
Discharge Standard
for Water Pollutants
along the
South-to-North
Water transfer
Project in Shandong
Province, adding the
limit of total
nitrogen.
Fuxin Waste gas: nitrogen Waste 3 (2 Waste COD：300mg/L Boiler Air Pollutant CODc CODc None
Liuhe oxides, fume gas: for gas: Ammonia Emission Standard r： r：
Farmi blackness, directl waste north nitrogen：30mg/L GB 13271-2014, 78.61t 78.61t
ng particulate matter, y gases, west pH：6-8.5 Malodorous /a /a
Co., sulfur dioxide, discha 1 for and Suspended solids： Pollutant Emission Amm Amm
Ltd ammonia (ammonia rge waste south 300mg/L Standard GB onia onia
Food gas), hydrogen after water) side of BOD5：250mg/L 14554-93 nitrog nitrog
Branc sulfide, odor treatm the Animal and Water Pollutant en:7.8 en:7.8
h concentration ent factor vegetable oils： Emission Standard 6t/a 6t/a
Wastewater: COD, waste y 50mg/L for Meat Processing
suspended solids, water: premis Industry GB
ammonia nitrogen indire es 13457-92,
(NH3-N), pH value, ct Waste Comprehensive
BOD5, animal and discha water: Sewage Discharge
vegetable oils, rge west Standard DB
coliform groups side of 21/1627-2008
92
2021 Semiannual Report of New Hope Liuhe Co., Ltd
the
factor
y
premis
es
Taiqia Waste gas: Waste 4 (3 Waste NOx: 150mg/m3 Boiler Air Pollutant COD None None
n ammonia (ammonia gas: for gas SO2: 50mg/m3 Emission Standard 236t/a
New gas), hydrogen directl waste discha Fume particles: GB 13271-2014, ;
Hope sulfide, odor y gases, rge 20mg/m3 Provincial Amm
Liuhe concentration, discha 1 for outlet: Benchmark Program for onia
Luxin particulate matter, rge waste at the oxygen content: Integrated Boiler nitrog
Food nitrogen oxides, after water) sewag 3.5% Renovation 2019 en
Co., sulfur dioxide, treatm e Fume blackness: Malodorous 2.3t/a
Ltd Ringelmann ent treatm level 1 Pollutant Emission
blackness waste ent Standard GB
Wastewater: COD, water: plant 14554-93
ammonia nitrogen indire in the Water Pollutant
(NH3-N), total ct north Emission Standard
phosphorus (in P), discha west for Meat Processing
pH value, BOD5, rge corner Industry GB
suspended solids, of the 13457-92
animal and factor
vegetable oils, y
coliform groups premis
es
Waste
water
discha
rge
outlet
Laoti Waste gas: Waste 4 (2 Waste COD 500mg/L Malodorous COD: COD: None
ng ammonia (ammonia gas: for gas Ammonia Pollutant Emission 9.31t/ 9.31t/
Liuhe gas), hydrogen directl waste discha nitrogen 45mg/L Standard GB a a
Xinm sulfide, odor y gases, rge Total phosphorus 14554-93 Amm Amm
eizi concentration discha 1 for outlet: 8mg/L Water Quality onia onia
Food wastewater: COD, rge waste sewag pH6-8.5mg/L Standard for nitrog nitrog
Co., ammonia nitrogen, after water) e Suspended solids Sewage Discharged en： en：
Ltd total nitrogen, treatm treatm 300mg/L into Urban Sewers 5.87t/ 5.87t/
animal and ent ent Total nitrogen: GB/T 31962-2015, a a
vegetable oils, waste plant 70mg/L Meat Processing Total Total
suspended solids, water: in the BOD5 250mg/L Industry Water nitrog nitrog
fecal coliform, indire north Animal and Pollutant Emission en（in en（in
BOD5 ct west vegetable oils Standard GB N）： N）：
discha corner 40.5t/ 40.5t/
93
2021 Semiannual Report of New Hope Liuhe Co., Ltd
rge of the 50mg/L 13457-92 a a
factor
y
premis
es,
and
produ
ction
shops
Waste
water
discha
rge
outlet:
sewag
e
treatm
ent
plant
Qixia Waste gas: Waste 4 (3 Waste Ammonia Malodorous COD: COD: None
Refri ammonia (ammonia gas: for gas nitrogen: 5m/L Pollutant Emission 14.4t/ 14.4t/
gerati gas), hydrogen directl waste discha COD 50mg/l Standard GB a a
on sulfide, odor y gases, rge pH: 6-9 14554-93 Amm Amm
Plant concentration discha 1 for outlet: Boiler Air Pollutant onia onia
of wastewater: COD, rge waste sewag Discharge Standard nitrog nitrog
Shand ammonia nitrogen, after water) e DB37 2374-2018 en： en：
ong total nitrogen, treatm treatm Comprehensive 1.5t/a 1.5t/a
New animal and ent ent Emission Standard
Hope vegetable oils, waste plant of Water Pollutants
Liuhe suspended solids, water: in the in the Peninsula
Grou fecal coliform, indire northe Basin of Shandong
p Co., BOD5 ct ast Province
Ltd discha corner DB37/676-2007,
rge of the Water Pollutant
factor Emission Standard
y for Meat Processing
premis Industry GB
es, 13457-92
and
produ
ction
shops
Waste
water
94
2021 Semiannual Report of New Hope Liuhe Co., Ltd
discha
rge
outlet:
sewag
e
treatm
ent
plant
Laiya Waste gas: odor Waste 2 (1 Waste COD 30mg/l, Shandong CODc
ng concentration, gas: for gas: ammonia nitrogen Provincial Boiler r None None
Tiany ammonia (ammonia directl waste north 1.5mg/l, total Air Pollutant 112.75
e gas), hydrogen y gases, side of phosphorus Emission Standard t/a
Food sulfide, sulfur discha 1 for the 0.5mg/l, total No. 2 Modification Amm
Co., dioxide, nitrogen rge waste factor nitrogen 15mg/l, Form onia
Ltd oxides, particulates, after water) y pH6-9 (Luzhijianbiaofa nitrog
fume blackness treatm premis [2016] No. 46, en
(Ringelmann ent es and Malodorous 3.02t/
blackness, scale) waste within Pollutant Emission a
Wastewater: COD, water: the Standard GB Total
ammonia nitrogen indire factor 14554-93 nitrog
(NH3-N), pH value, ct y Comprehensive en
suspended solids, discha premis Emission Standard 3.32t/
BOD5, animal and rge es of of Water Pollutants a
vegetable oils, the in the Peninsula total
coliform groups, compa Basin of Shandong phosp
total nitrogen (in ny Province horus
N), Waste DB37/676-2007, 0.016t
water: Water Pollutant /a
west Emission Standard
side of for Meat Processing
the Industry GB
compa 13457-92
ny
Tai’an Waste gases: Waste 6 (5 Waste COD：350mg/L Water Quality COD： COD： None
Tai nitrogen oxides, gas: for gases: Total nitrogen： Standard for 533.0 533.0
sha particulates, sulfur directl waste west 70mg/L Sewage Discharged 5t/a; 5t/a;
n dioxide, hydrogen y gases, side of Ammonia into Urban Sewers ammo ammo
Liu sulfide, ammonia, discha 1 for the nitrogen：45mg/L GB/T 31962-2015, nia nia
he odor concentration, rge waste compa Total phosphorus： Meat Processing nitrog nitrog
Fo Ringelman after water) ny’s 8mg/L Industry Water en： en：
od blackness treatm factor pH：6-8.5 Pollutant Discharge 45.69t 45.69t
Co. Wastewater: ent y Suspended solids： Standard GB /a /a
, chemical oxygen waste premis 256mg/L 13457-92
demand, ammonia water: es, BOD5：150mg/L Malodorous
95
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Ltd nitrogen, total indire inside Animal and Pollutant Discharge
nitrogen, total ct the vegetable oils： Standard GB
phosphorus, pH discha compa 50mg/L 14554-93
value, five-day rge ny Hydrogen sulfide: DB/372376-2013
biochemical oxygen waste 0.1mg/nm3 Shandong
demand, animal and water: Ammonia: Provincial
vegetable oils, west 2mg/nm3 Comprehensive Air
suspended solids, side of Particles: Pollutant Emission
coliform bacteria the 10mg/nm3 Standard No. 2
count, anionic west Sulfur dioxide: Modification Form
surfactant gate 50mg/nm3 Luzhijianbiaofa
of the nitrogen oxides: (2016) No. 46，
compa 100mg/nm3 Boiler Air Pollutant
ny Emission Standard
DB37/2374-2018
Shand Waste gas: Waste 3 (2 Waste Ammonia Boiler Air Pollutant CODc CODc None
ong ammonia (ammonia gas: for gases: nitrogen 45mg/l Emission Standard r r
New gas), hydrogen directl waste east COD 500mg/l DB372374 -2018, 8.68t/ 8.68t/
Hope sulfide, odor y gases, side of Total phosphorus Malodorous a a
Liuhe concentration, discha 1 for the 8mg/l Pollutant Emission Amm Amm
Grou sulfur dioxide, rge waste compa Total nitrogen Standard GB onia onia
p Co., nitrogen oxides, after water) ny’s 70mg/l 14554-93 nitrog nitrog
Ltd particulates, treatm factor Water Quality en en
Linyi Ringelmann ent y Standard for 0.68t/ 0.68t/
Branc blackness waste premis Sewage Discharged a a
h Wastewater: COD, water: es into Urban Sewers Total Total
pH value, dissolved indire Waste GB/T 31962-2015, phosp phosp
total solids, ct water: Meat Processing horus horus
ammonia nitrogen discha southe Industry Water 0.88t/ 0.88t/
(NH3-N), total rge ast Pollutant Emission a a
nitrogen (N), total side of Standard GB Total Total
phosphorus (P), the 13457-92 nitrog nitrog
suspended solids, compa en en
BOD5, flow rate, ny 4.1t/a 4.1t/a
animal and
vegetable oil, total
coliform groups.
Qingd Waste gases: Waste 7 (6 Waste Fumes: Boiler Air Pollutant COD: COD: None
ao nitrogen oxides, gases: for gases: 1.5mg/Nm3 Emission Standard 18.45t 18.45t
Liuhe sulfur dioxide, directl waste west COD：500mg/L DB37 2374-2018 /a /a
Wanf hydrogen sulfide, y gases, side of Ammonia Shandong Amm Amm
u fumes, Ringelman discha 1 for the nitrogen：45mg/L Provincial Fume onia onia
Food blackness, ammonia rged waste factor Total nitrogen： Emission Standard nitrog nitrog
Co., (ammonia gas), after y 70mg/L for Catering en： en：
96
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Ltd hydrogen sulfide, treatm water) premis pH：6.5-9.5 Industry 1.75t/ 1.75t/
odor concentration, ent es Total phosphorus： DB37/597-2006 a a
Wastewater: COD, Waste 8mg/L Malodorous Partic Partic
ammonia nitrogen water: Waste Suspended solids： Pollutant Emission ulate ulate
(NH3-N), pH value, discha water: 400mg/L Standard GB matter matter
BOD5, total rged south BOD5：350mg/L 14554-93, ： ：
nitrogen (as N), into west Animal and Shandong 10.5t/ 10.5t/
total phosphorus, sewag side of vegetable oils： Provincial a a
animal and e the 100mg/L Comprehensive SO2:1 SO2:1
vegetable oils, treatm factor Nitrogen oxides: Emission Standard .8t/a .8t/a
suspended solids, ent y 200mg/Nm3 for Regional Air NOx:8 NOx:8
coliform bacteria plant premis Sulfur dioxide: Pollutants .55t/a .55t/a
count after es 50mg/Nm3 DB37/2376-2019,
treatm Soot: 10mg/Nm3 Comprehensive Air
ent. Pollutant Emission
Standard
GB16297-1996,
Water Quality
Standard for
Sewage Discharged
into Urban Sewers
GB/T 31962-2015
Fenxi Waste gases: Waste 4 (3 Waste COD 40mg/l, Boiler Air Pollutant COD: COD: None
New nitrogen oxides, gases: for gas ammonia nitrogen Emission Standard 2.90t/ 2.90t/
Hope sulfur dioxide, directl waste discha 2mg/l, total GB 13271-2014, a a
Liuhe particles y gases, rge phosphorus Malodorous Amm Amm
Food Wastewater: COD, discha 1 for outlets 0.4mg/l, total Pollutant Emission onia onia
Co., suspended solids, rged waste : nitrogen 2mg/l, Standard GB nitrog nitrog
Ltd ammonia nitrogen after water) boiler pH6-9 14554-93 en： en：
(NH3-N), pH value, treatm rooms Water Pollutant 0.70t/ 0.70t/
BOD5, animal and ent and Emission Standard a a
vegetable oils, Waste produ for Meat Processing
coliform bacteria water: ction Industry GB
count directl shops 13457-92,
y in Comprehensive
discha north Sewage Discharge
rged west Standard DB
after and 21/1627-2008
treatm south
ent. west
of the
factor
y
premis
97
2021 Semiannual Report of New Hope Liuhe Co., Ltd
es.
Waste
water
discha
rge
outlet:
sewag
e
treatm
ent
plant
Beijin Waste gas: Waste 4 (3 Waste Non methane Comprehensive COD： COD： None
g hydrogen sulfide, gas: for gas hydrocarbons Water Pollutant 186.1 186.1
Kingh odor concentration, directl waste discha (rendering shop): Discharge Standards 5t/a; 5t/a;
ey ammonia (ammonia y gases, rge 50mg/m3 （DB11/307-2013） ammo ammo
Food gas), particulate discha 1 for outlets Non methane nia nia
Co., matter, non-methane rge waste : hydrocarbons： Comprehensive Air nitrog nitrog
Ltd total hydrocarbons, after water) cantee 10mg/m3; Pollutant Discharge en： en：
particulates, treatm ns, Fumes： Standard DB11/ 18.61 18.61
nitrogen oxides, ent render 1mg/Nm3; 501—2017 5t/a 5t/a
sulfur dioxide, waste ing PM10:5mg/Nm3
fume, sulfur water: shops COD: 220mg/L, Catering Industry
dioxide, nitrogen indire Waste ammonia Oil Fume Emission
oxides, Ringelmann ct water nitrogen: 35mg/L, Standard（Trial）
blackness discha discha total phosphorus 6 GB18483-2001
Wastewater: pH, rge rge mg/L, total
COD, BOD5, outlets nitrogen 50mg/L
suspended solids, : south
ammonia nitrogen side of
(NH3-N), animal the
and vegetable oils, sewag
total phosphorus (in e
P), total nitrogen (in treatm
N), coliform groups ent
station
.
Hebei Waste gas: Indire 6 (5 Waste Odor: 2000 Comprehensive COD： COD： None
Kingh hydrogen sulfide, ct for gas Non methane Water Pollutant 23.63t 23.63t
ey ammonia (ammonia discha waste discha hydrocarbons Emission Standard /a; /a;
Meat gas), odor rge gases, rge (rendering shop)： (DB11/307-2013), ammo ammo
Indust concentration, 1 for outlets 80mg/m3 Industrial VOC nia nia
ry non-methane total waste : Emission Control nitrog nitrog
Co., hydrocarbons, water) cantee COD: 120mg/L, Standard en： en：
particulates, ns, ammonia nitrogen DB13/2322-2016 2.29t/ 2.29t/
98
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Ltd nitrogen oxides, render 25mg/L, total Malodorous Odor a a
sulfur dioxide ing phosphorus Pollutant Emission
Wastewater: COD, shops, 8mg/L, total Standard GB
ammonia nitrogen, waitin nitrogen 75mg/L, 14554- 93
total nitrogen, total g BOD: 60mg/L,
phosphorus, pH, pens, total suspended
BOD5, suspended deslim solids: 120mg/L
solids, animal and ing
vegetable oils, rooms
coliform groups, ,
phosphate. floatat
ion
tank
North
side of
the
sewag
e
treatm
ent
station
Liaon Waste gas: Waste 1 Outlet COD：300 ㎎/L， Comprehensive COD： COD： None
ing ammonia (ammonia gas: of the ammonia Sewage Discharge 462t/a 462t/a
Kingh gas), odor directl sewag nitrogen：30 ㎎/L， Standard DB ; ;
ey concentration, y e total phosphorus 5 21/1627-2008 ammo ammo
Food sulfur dioxide, discha treatm ㎎/L，total Water Pollutant nia nia
Co., hydrogen sulfide, rge ent nitrogen 50 ㎎/L， Emission Standard nitrog nitrog
Ltd nitrogen oxides, after station BOD：250mg/L, for Meat Processing en： en：
particulates treatm (north total suspended Industry GB 46.2t/ 46.2t/
Wastewater: COD, ent east solids：300mg/L 13457-92 a a
ammonia nitrogen waste corner Malodorous
(NH3-N), total water: of the Pollutant Emission
nitrogen (in N), indire factor Standard GB
total phosphorus (in ct y 14554-93,
P), pH, BOD5, discha premis Comprehensive Air
suspended solids, rge es) Pollutant Emission
animal and Standard
vegetable oils, GB16297-1996
coliform groups,
flow rate.
Chen Waste water: COD, Waste 4 Waste COD: 500mg/L Boiler Air Pollutant COD: None None
gdu BOD5, ammonia water: gas Ammonia Discharge Standard 11.9t/a
Hope nitrogen, total discha discha nitrogen: 45mg/L GB13271-2014 total
Food phosphorus, total rged rge total nitrogen: Water Quality nitrog
99
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Co., nitrogen, suspended into outlet: 70mg/L Standard for en:
Ltd solids, pH, animal urban east of pH: 6.0-8.5 Sewage Discharged 6.3t/a
and vegetable oils, sewag the Total phosphorus: into Urban Sewers ammo
coliform groups e low-te 8mg/L GB/T 31962-2015, nia
Waste gas: nitrogen treatm mpera Suspended solids: Meat Processing nitrog
oxides, sulfur ent ture 400mg/L Industry Water en:
dioxide, plant plant, BOD5: 300mg/L Pollutant Emission 3.7t/a
particulates, after south Animal and Standard GB total
Ringelmann treatm west vegetable oils: 13457-92 phosp
blackness, hydrogen ent of the 60mg/L horous
sulfide, ammonia, Waste high-t Ringelman :
odor gas: emper blackness: level 1 0.3t/a
directl ature Nitrogen oxides nitrog
y plant 150mg/Nm3 en
discha Waste Sulfur dioxide: oxides
rged water 50mg/Nm3 :
discha Particulate matter 0.7t/a
rge 20mg/Nm3 sulfur
outlet: dioxid
south e:
west 0.2t/a
of the
low-te
mpera
ture
plant,
south
of
high-t
emper
ature
plant
Zheji Waste gases: Waste 1 COD：450mg/L Meat Processing COD： COD： None
ang nitrogen oxides, gas: waste Total nitrogen： Industry Water 16.63t 16.63t
Xindo particulates, sulfur directl water Waste 50mg/L Pollutant Discharge /a; /a;
ngwa dioxide, hydrogen y discha water: Ammonia Standard GB ammo ammo
n sulfide, ammonia, discha rge off-sit nitrogen：35mg/L 13457-92 nia nia
Agric odor concentration rge outlet e Total phosphorus： Agreements with nitrog nitrog
ultura wastewater: after enviro 6mg/L sewage treatment en： en：
l chemical oxygen treatm nment pH：6-8.5 plants 2.49t/ 2.49t/
Devel demand, ammonia ent al Suspended solids： Malodorous a a
opme nitrogen, total waste protec 200mg/L Pollutant Discharge
nt nitrogen, total water: tion BOD5：120mg/L Standard GB
Co., phosphorus, pH indire station Animal and 14554-93,
100
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Ltd value, five-day ct of the vegetable oils： Boiler Air Pollutant
biochemical oxygen discha compa 50mg/L Discharge Standard
demand, animal and rge ny Nitrogen oxides ： GB 13271-2014,
vegetable oils, 150mg/Nm3 Emission Standard
suspended solids, Sulfur dioxide： for Boiler Air
coliform bacteria. 50mg/Nm3 Pollutants DB37
Fumes： 2374-2018
10mg/Nm3
Hang Waste gases: Waste 1 COD：450mg/L Meat Processing COD： COD： None
zhou nitrogen oxides, gas: waste Waste Total nitrogen： Industry Water 16.63t 16.63t
Guan particulates, sulfur directl water water: 50mg/L Pollutant Discharge /a; /a;
glv dioxide, hydrogen y discha off-sit Ammonia Standard GB ammo ammo
Breed sulfide, ammonia, discha rge e nitrogen：35mg/L 13457-92 nia nia
ing odor concentration rge outlet enviro Total phosphorus： Agreements with nitrog nitrog
Co., wastewater: after nment 6mg/L sewage treatment en： en：
Ltd chemical oxygen treatm al pH：6-8.5 plants 2.49t/ 2.49t/
demand, ammonia ent protec Suspended solids： Malodorous a a
nitrogen, total waste tion 200mg/L Pollutant Discharge
nitrogen, total water: station BOD5：120mg/L Standard GB
phosphorus, pH indire of the Animal and 14554-93,
value, five-day ct compa vegetable oils： Boiler Air Pollutant
biochemical oxygen discha ny 50mg/L Discharge Standard
demand, animal and rge Nitrogen oxides ： GB 13271-2014,
vegetable oils, 150mg/Nm3 Emission Standard
suspended solids, Sulfur dioxide： for Boiler Air
coliform bacteria. 50mg/Nm3 Pollutants DB37
Fumes： 2374-2018
10mg/Nm3
Ruian Waste gases: Waste One COD：380mg/L Meat Processing COD： COD： None
New nitrogen oxides, gas: waste Total nitrogen： Industry Water 2.64t/ 2.64t/
Hope particulates, sulfur directl water Waste 40mg/L Pollutant Discharge a; a;
Liuhe dioxide, hydrogen y discha water: Ammonia Standard GB ammo ammo
Farmi sulfide, ammonia, discha rge off-sit nitrogen：70mg/L 13457-92 nia nia
ng odor concentration rge outlet e Total phosphorus： Agreements with nitrog nitrog
Co., wastewater: after enviro 7mg/L sewage treatment en： en：
Ltd chemical oxygen treatm nment pH：6-8 plants 0.26t/ 0.26t/
demand, ammonia ent al Suspended solids： Malodorous a a
nitrogen, total waste protec 160mg/L Pollutant Discharge
nitrogen, total water: tion BOD5：140mg/L Standard GB
phosphorus, pH indire station Animal and 14554-93,
value, five-day ct of the vegetable oils： Boiler Air Pollutant
biochemical oxygen discha compa 0.16t/a Discharge Standard
demand, animal and rge ny Nitrogen oxides: GB 13271-2014,
vegetable oils, 150mg/Nm3 Emission Standard
101
2021 Semiannual Report of New Hope Liuhe Co., Ltd
suspended solids, Sulfur dioxide: for Boiler Air
coliform bacteria. 50mg/Nm3 Pollutants DB37
Fumes: 2374-2018
10mg/Nm3
Ningb Waste gases: Waste One COD：300mg/L Water Quality COD： COD： None
o nitrogen oxides, gas: waste Total nitrogen： Standard for 2.64t/ 2.64t/
New particulates, sulfur directl water Waste 40mg/L Farmland Irrigation a; a;
Hope dioxide, hydrogen y discha water: Ammonia GB5084-2005, ammo ammo
Liuhe sulfide, ammonia, discha rge off-sit nitrogen：70mg/L Malodorous nia nia
Farmi odor concentration rge outlet e Total phosphorus： Pollutant Emission nitrog nitrog
ng wastewater: after enviro 7mg/L Standard GB en： en：
Co., chemical oxygen treatm nment pH：6-8 14554-93, 0.26t/ 0.26t/
Ltd demand, ammonia ent al Suspended solids： Boiler Air Pollutant a a
nitrogen, total waste protec 200mg/L Emission Standard
nitrogen, total water: tion BOD5：150mg/L GB13271-2014
phosphorus, pH indire station Animal and Boiler Air Pollutant
value, five-day ct of the vegetable oils： Emission Standard
biochemical oxygen discha compa 0.16t/a DB37/2374-2018
demand, animal and rge ny Nitrogen oxides:
vegetable oils, 150mg/Nm3
suspended solids, Sulfur dioxide:
coliform bacteria. 50mg/Nm3
Fumes:
10mg/Nm3
Zhen Waste gases: Waste One COD：300mg/L Water Quality COD： COD： None
gjiang nitrogen oxides, gases: waste Total nitrogen： Standard for 73.36t 73.36t
Yihai particulates, sulfur directl water Waste 70mg/L Farmland Irrigation /a; /a;
Agric dioxide, hydrogen y discha waters Ammonia GB5084-2005, ammo ammo
ultura sulfide, ammonia, discha rge : north nitrogen：30mg/L Malodorous nia nia
l odor concentration rged outlet side of Total phosphorus： Pollutant Emission nitrog nitrog
Devel wastewater: after the 7mg/L Standard GB en： en：
opme chemical oxygen treatm enviro pH：6-8 14554-93, 7.34t/ 7.34t/
nt demand, ammonia ent nment Suspended solids： Boiler Air Pollutant a a
Co., nitrogen, total Waste al 200mg/L Emission Standard
Ltd nitrogen, total water: protec BOD5：150mg/L GB13271-2014
phosphorus, pH directl tion Animal and Boiler Air Pollutant
value, five-day y station vegetable oils： Emission Standard
biochemical oxygen discha of the 0.16t/a (DB37/2374-2018)
demand, animal and rged compa Nitrogen oxides:
vegetable oils, after ny 150mg/Nm3
suspended solids, treatm Sulfur dioxide:
coliform bacteria. ent. 50mg/Nm3
Fumes:
102
2021 Semiannual Report of New Hope Liuhe Co., Ltd
10mg/Nm3
Construction and operation of pollution control facilities
Name of
pollution Treatment Operation
Company name Treatment process Time commissioned
control capacity status
facility
Sewage
Linyi Liuhe Food Co., Anaerobic + aerobic 1,200 cubic Commissioned in Running
treatment
Ltd (A/O process) meters/day 2015 normally
system
Sewage Hydrolytic
Qiuxian Liuhe 1000 cubic Commissioned in Running
treatment acidification + A/O
Kangyuan Food Co., Ltd meters/day 2014 normally
system process
Lanling New Hope Sewage
Anaerobic + aerobic 600 cubic Commissioned in Running
Liuhe Hongjun Food treatment
(A/O process) meters/day 2013 normally
Co., Ltd system
Acquired in 1997,
Pingyi Refrigeration
Sewage operated using the
Plant of Shandong New Biological contact 1,200 cubic Running
treatment original tanks, further
Hope Liuhe Group Co., oxidation process meters/day normally
system improved in
Ltd
2002/2004.
SBR system was
Sewage
Qingdao Tianrun Food SBR process + A/O 2000 cubic commissioned in Running
treatment
Co., Ltd process meters/day 2005, followed by normally
system
A/O process in 2009
Commissioned in
Sewage
Xiaoyi New Hope Liuhe Anaerobic + aerobic 1600 cubic 2012, process Running
treatment
Food Co., Ltd (A/O process) meters/day improved in 2016, normally
system
with bio-filters added
Commissioned in
Sewage 2010, and further
Yishui New Hope Liuhe Anaerobic + aerobic 1800 cubic Running
treatment improved in 2014
Food Co., Ltd (A/O process) meters/day normally
system through sewage
treatment system
Sewage Commissioned in
Guantao Liuhe Food Anaerobic + aerobic 3400 cubic Running
treatment 2009, and further
Co., Ltd (A/O process) meters/day normally
system improved in 2017
Sewage
Binzhou Liuhe Longda SBR process + A/O 500 cubic Commissioned in Running
treatment
Farming Co., Ltd process meters/day 2008 normally
system
Sewage
Wudi Liuhe Xinyang SBR process + A/O 1000 cubic Running
treatment 2006
Food Co., Ltd process meters/day normally
system
103
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Sewage Commissioned in
Zouping Liuhe Anaerobic + aerobic 1000 cubic Running
treatment 2004 and transformed
Livestock Co., Ltd (A/O process) meters/day normally
system and upgraded in 2012
Sewage
Shanxian Liuhe Feed Hydrolytic 1300 cubic Commissioned in Running
treatment
Co., Ltd Food Branch acidification + BRN meters/day 2012 normally
system
Sewage
Caoxian Liuhe Food 1400 cubic Commissioned in Running
treatment FBR process
Co.,Ltd meters/day 2007 normally
system
Sewage
Jiaxiang New Hope Anaerobic + aerobic 3000 cubic Running
treatment September 2017
Liuhe Food Co., Ltd (A/O process) meters/day normally
system
Commissioned in
Sewage
Yuncheng Liuhe Food Anaerobic + aerobic 800 cubic 2006, and upgraded Running
treatment
Co., Ltd (A/O process) meters/day in 2011 and 2017 normally
system
respectively.
Sewage
Anshan Liuhe Food Co., Anaerobic + aerobic 2000 cubic Commissioned in Running
treatment
Ltd (A/O process) meters/day 2007 normally
system
Sewage
Panjin Liuhe Farming Biological contact 1,200 cubic Commissioned in Running
treatment
Co., Ltd oxidation process meters/day 2011 normally
system
Sewage
Dong’e Liuhe Lvjia Anaerobic + aerobic 600 cubic Commissioned in Running
treatment
Food Co., Ltd (A/O process) meters/day 2010 normally
system
High efficiency air
Liaocheng Liuhe Sewage floatation + Commissioned in
2500 cubic Running
Rongda Farming Co., treatment hydrolytic 2013 and accepted in
meters/day normally
Ltd system acidification (A/O May 2015
process)
Combined air
Shenxian New Hope Sewage floatation and Commissioned in
2000 cubic Running
Liuhe Qingsizhai Food treatment biological contact December 2013 and
meters/day normally
Co., Ltd system oxidation (A/O accepted in July 2014
process)
The contact oxidation
Sewage process was put into
Yanggu Liuhe Luxin Anaerobic + aerobic 3000 cubic Running
treatment operation in 2009,
Food Co., Ltd (A/O process) meters/day normally
system followed by the A/O
process in 2015
The contact oxidation
Sewage
Weifang Tianhui Food Contact oxidation 700 cubic process was put into Running
treatment
Co., Ltd process + SBR meters/day operation in 2007 and normally
system
SBR in 2009
104
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Sewage
Weifang Heshengyuan Anaerobic + aerobic 5700 cubic Commissioned in Running
treatment
Food Co., Ltd (A/O process) meters/day 2018 normally
system
Sewage Commissioned in
Luoyang Liuhe Huiquan Anaerobic + aerobic 1000 cubic Running
treatment 2008, and further
Food Co., Ltd (A/O process) meters/day normally
system improved in 2015
Sewage Commissioned in
Hebi Liuhe Zhizhen Anaerobic + aerobic 2000 cubic Under
treatment 2011 and upgraded in
Food Co., Ltd (A/O process) meters/day testing
system 2015
Sewage
Laiwu New Hope Liuhe Anaerobic + aerobic 3000 cubic Running
treatment 2014
Food Co., Ltd (A/O process) meters/day normally
system
Sewage Commissioned in
Dezhou Liuhe Zhikang Anaerobic + aerobic 1000 cubic Running
treatment 2008 and system
Food Co., Ltd (A/O process) meters/day normally
system improved in 2020
Commissioned in
Sewage 2013, and further
Feixian Liuhe Huahai Anaerobic + aerobic 2000 cubic Running
treatment improved in 2016
Food Co., Ltd (A/O process) meters/day normally
system through sewage
treatment system
Sewage
Fuxin Liuhe Farming Anaerobic + aerobic 1500 cubic Commissioned in Running
treatment
Co., Ltd Food Branch (A/O process) meters/day 2007 normally
system
Taiqian New Hope Sewage
Anaerobic + aerobic 2000 cubic Running
Liuhe Luxin Food Co., treatment 44105
(A/O process) meters/day normally
Ltd system
Sewage
Laoting Liuhe Xinmeizi Anaerobic + aerobic 1500 cubic Commissioned in Running
treatment
Food Co., Ltd (A/O process) meters/day 2016 normally
system
Qixia Refrigeration
Sewage
Plant of Shandong New Anaerobic + aerobic 1,200 cubic Commissioned in Running
treatment
Hope Liuhe Group Co., (A/O process) meters/day 2012 normally
system
Ltd
Commissioned in
Sewage 2008, and further
Laiyang Tianye Food 1,200 cubic Running
treatment A/O process improved in 2016
Co., Ltd meters/day normally
system through sewage
treatment system
Sewage
Tai’an Taishan Liuhe Anaerobic + aerobic 1500 cubic Commissioned in Running
treatment
Food Co., Ltd (A/O process) meters/day 2015 normally
system
Shandong New Hope Sewage Commissioned in
Anaerobic + aerobic 1500 cubic Running
Liuhe Group Co., Ltd treatment 2013, and further
(A/O process) meters/day normally
Linyi Branch system improved in 2019
105
2021 Semiannual Report of New Hope Liuhe Co., Ltd
through sewage
treatment system
Sewage
Qingdao Liuhe Wanfu 800 cubic Commissioned in Running
treatment SBR process
Food Co., Ltd meters/day 2012 normally
system
Commissioned in
Sewage 2011, and further
Fenxi New Hope Liuhe 1000 cubic Running
treatment A/O process improved in 2018
Food Co., Ltd meters/day normally
system through sewage
treatment system
Sewage
Beijing Kinghey Food Biological contact 1500 cubic Commissioned in Running
treatment
Co., Ltd oxidation process meters/day 2004 normally
system
Sewage
Hebei Kinghey Meat 1500 cubic Commissioned in Running
treatment A/O process
Industry Co., Ltd meters/day 2006 normally
system
The first phase was
Sewage Biological contact
Liaoning Kinghey Food 3000 cubic commissioned in Running
treatment oxidation process,
Co., Ltd meters/day 2006, followed by the normally
system A/O process
second phase in 2019
Sewage
Chengdu Xiwang Food Anaerobic + aerobic 1400 cubic Commissioned in Running
treatment
Co., Ltd (A/O process) meters/day 2010 normally
system
Zhejiang Xindongwan Sewage
Aerobic aeration 1500 cubic Not
Agricultural treatment Not commissioned
process meters/day operated
Development Co., Ltd system
Pooled into Zhejiang
Xindongwan
Sewage
Hangzhou Guanglv Agricultural
treatment
Breeding Co., Ltd Development Co.,
system
Ltd for sharing of one
system.
Sewage
Ruian New Hope Liuhe UASB+ two-level 430 cubic Not
treatment Not commissioned
Farming Co., Ltd AO meters/day operated
system
Zhejiang Yihai Sewage
UASB+ two-level 670 cubic Commissioned in
Agricultural treatment Rectification
AO meters/day 2021
Development Co., Ltd system
Sewage
Ningbo New Hope UASB+ two-level 731 cubic Commissioned in Running
treatment
Liuhe Farming Co., Ltd AO meters/day 2021 normally
system
Environmental impact assessment of construction projects and other administrative licenses for environmental protection
Company name Document name Approving Date approved Approval No
106
2021 Semiannual Report of New Hope Liuhe Co., Ltd
authority
Dezhou City
Bureau of
Approval of environmental impact Environment
Dehuanyan
assessment report of Linyi Liuhe Food al December 24, 2010
(2010) No. 65
Co., Ltd Protection,
Shandong
Province
Linyi Liuhe
Linyi
Food Co., Ltd
County
Bureau of
Acceptance Test Report on
Environment Linhuanjianzi
Environmental Protection of Completed June 2017
al 2017 YS06-07
Construction Project
Protection,
Shandong
Province
Approval of Environmental Impact
Qiu County
Assessment Report on the 20 million
Bureau of Qiuhuanshu
white-feathered meat duck farming and February 02, 2012
Enviornment [2012] No. 1
processing project of Hebei Kangyuan
al Proetction
HALAL Food Co., Ltd
Supplement to the 20 million Qiu County
white-feathered meat duck farming and Bureau of Qiuhuanshu
December 23, 2013
processing project of Hebei Kangyuan Enviornment [2013] No. 4
HALAL Food Co., Ltd al Proetction
Qiuxian Liuhe Qiu County
The 20 million white-feathered meat
Kangyuan Food Bureau of Qiuhuanyan
duck farming and processing project of 2013
Co., Ltd Enviornment [2013] No.07
Hebei Kangyuan Islamic Food Co., Ltd
al Proetction
Qiu County
Duck feather drying and processing Bureau of Qiushenhuanbia
2019
project Administrati o 【2019】No.11
ve Approval
Construction project environmental
Filed by the
impact registration form for UV light October 15, 2018 2018130400000
company
oxygen deodorization environmental (time filed) 0054
online
protection project
Approval of Environmental Impact
Linyi City
Assessment Report on the 15 million/a
Lanling New Bureau of Linhuanfa
meat duck slaughtering and food April 10, 2013
Hope Liuhe Environment 【2013】No. 53
processing project of Cangshan County
Hongjun Food al Protection
Hongjun Food Co., Ltd
Co., Ltd
Acceptance Opinions on the Linyi City Linhuanpingha
August 20, 2018
Completion Acceptance of Bureau of n (2014) No.
107
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Environmental Protection for the 15 Environment 341
million/a meat duck slaughtering and al Protection
food processing project of Lanling New
Hope Liuhe Hongjun Food Co., Ltd
Written Reply regarding the Approval Linyi City
Linhuanhan
Opinions on the Second Phase of Bureau of
Pingyi December 07, 2001 【2001】No.
Broiler Slaughtering Line Project of Environment
Refrigeration 103
Pingyi Liuhe Co., Ltd al Protection
Factory of
Acceptance Opinions on the
Shandong New Linyi City
Completion Acceptance of
Hope Liuhe Bureau of Pinghuanshenzi
Environmental Protection of the Second June 02, 2003
Group Co., Ltd Environment (2008)No. 41
Phase of Broiler Slaughtering Line
al Protection
Project of Pingyi Liuhe Co., Ltd
Jiehua
“Environmental Impact Report on Environment
Poultry Slaughterhouse Expansion al Feberuray 2020 1581306565000
Project” Technology
Co., Ltd
Qingdao Pingdu City
Environmental Impact Report on the 6
Tianrun Food Bureau of Pinghuanjianzi
million/a Meat Duck Processing Plant 2015-01-18
Co., Ltd Environment (2005) No. 20
Project
al Protection
Acceptance Opinions on Completion Pingdu City
Acceptance of Environmental Bureau of Pinghuanjianzi
2006-12-19
Protection of the Meat Duck Processing Environment (2003) No. 53
Plant Project al Protection
Approval of Environmental Impact
Lvliang City
Assessment Report on the proposed Lvhuanxingshe
Bureau of
60,000 t/a chicken cutting production 2010-12-09 n [2010]No.
Environment
line project of Xiaoyi Daxiang Farming 335
al Protection
Xiaoyi New & Food Co., Ltd
Hope Liuhe Acceptance Opinions on Completion
Food Co., Ltd Acceptance of Environmental Lvliang City
Protection of the proposed 60,000 t/a Bureau of Xiaohuanhan
2017-09-30
chicken cutting production line project Environment [2017] No. 167
of Xiaoyi Daxiang Farming & Food al Protection
Co., Ltd
Approval of Environmental Impact
Linyi City
Assessment Report of the proposed Linhuanhan
Bureau of
Yishui New 90,000 t/a poultry meat and food May 04, 2009 【2009】No.
Environment
Hope Liuhe processing plant project of Yishui Liuhe 245
al Protection
Food Co., Ltd Kailida Food Co., Ltd
Approval of Application for Linyi City Linhuanhan
August 21, 2010
Commissioning of the new 90,000 t/a Bureau of 【2010】No.
108
2021 Semiannual Report of New Hope Liuhe Co., Ltd
poultry meat and food processing plant Environment 596
project of Yishui Liuhe Kailida Food al Protection
Co., Ltd
Approval of Environmental Impact Linyi City
Linhuanhan
Assessment Report on the Sewage Bureau of
June 24, 2011 【2011】No.
Treatment Improvement Project of Environment
330
Yishui Liuhe Kailida Food Co., Ltd al Protection
Approval of Application for Linyi City
Linhuanhan
Commissioning of the Sewage Bureau of
October 12, 2012 【2012】No.
Treatment Improvement Project of Environment
554
Yishui Liuhe Kailida Food Co., Ltd al Protection
Approval of Environmental Impact Handan City
Assessment Report on the Broiler Bureau of
March 04, 2009 [2009] No. 36
Slaughtering and Cutting Project of Environment
Guantao Liuhe Food Co., Ltd al Protection
Acceptance Opinions on Completion
Handan City
Acceptance of Environmental
Guantao Liuhe Bureau of Hanhuanyan
Protection of the Broiler Slaughtering December 02, 2010
Food Co., Ltd Environment [2010] No. 89
and Cutting Project of Guantao Liuhe
al Protection
Food Co., Ltd
Handan City
Meat packing and sewage treatment Bureau of Huanguanbiao
May 22, 2017
project of Guantao Liuhe Food Co., Ltd Environment 【2017】No. 9
al Protection
Binzhou
City Bureau
The 0.90 million/a broiler and duck of Binchenghuanb
slaughtering and cutting plant project of Environment March 16, 2007 iao [2007] No.
Binzhou Longda Food Co., Ltd al Protection 11
Binzhou Liuhe Bincheng
Longda Branch
Farming Co., Binzhou
Ltd City Bureau
of
Huanyan [2008]
Acceptance opinions Environment September 20, 2008
No.1-15
al Protection
Bincheng
Branch
Binzhou
Wudi Liuhe The 40,000/a broiler slaughtering plant City Bureau
Binhuanzi
Xinyang Food project of Binzhou Qinghe Fushi Food of February 26, 2007
[2007] No. 30
Co., Ltd Co., Ltd Environment
al Protection
Zouping Liuhe Approval of Environmental Impact Zouping September 08, 2009 Zouhuanuanzi
109
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Livestock Co., Assessment Report on the 0.90 County (2009) No.72
Ltd million/a broiler slaughtering line Bureau of
project of Zouping Liuhe Farming Co., Environment
Ltd al Protection
Acceptance Opionios on Completion Zouping
Acceptance of Environmental County
Zouhuanyanbia
Protection of the 0.90 million/a broiler Bureau of December 07, 2010
o (2010) No. 13
slaughtering line project of Zouping Environment
Liuhe Farming Co., Ltd al Protection
The 30 million/a meat duck Heze City
slaughtering and processing plant Bureau of Hehuanshen
June 11, 2012
project of Shanxian Liuhe Feed Co., Ltd Environment [2012] No. 46
Shanxian Liuhe Food Branch al Protection
Feed Co., Ltd Completion Acceptance of
Heze City
Food Branch Enviornmental Protection of the 30
Bureau of Huanyan [2017]
million/a meat duck slaughtering and September 30, 2017
Environment No. 108
processing plant project of Shanxian
al Protection
Liuhe Feed Co., Ltd Food Branch
Cao County
The 20 million/a duck slaughtering and
Bureau of Caohuanshen
processing plant project of Caoxian April 11, 2007
Environment [2007] No. 44
Liuhe Food Co., Ltd
al Protection
Caoxian Liuhe
Completion acceptance of
Food Co.,Ltd Cao County
environmental protection of the 20
Bureau of Caohuanshen
million/a duck slaughtering and June 10, 2008
Environment [2008] No. 26
processing plant project of Caoxian
al Protection
Liuhe Food Co., Ltd
Jiaxiang
Jiaxiang New The meat poultry slaughtering and County
Jiahuanshen
Hope Liuhe packing plant project of Jiaxiang New Bureau of August 17, 2016
[2016] No. 02
Food Co., Ltd Hope Liuhe Food Co., Ltd Environment
al Protection
Yuncheng
Approval of the Environmental Impact
County
Assessment Report on Wastewater Yunhuanshen
Bureau of July 25, 2010
Treatment Improvement Project of 【2010】No. 62
Environment
Yuncheng Yuncheng Liuhe Food Co., Ltd
al Protection
Liuhe Food Co.,
Yuncheng
Ltd
Completion Acceptance Form for the County
Yunhuanpingha
Wastewater Treatment Improvement Bureau of October 13, 2014
n (2018) No.6
Project Environment
al Protection
Anshan Liuhe The 15 million/a meat duck Tai’an Taihuanshenzi
May 11, 2007
Food Co., Ltd slaughtering and packing plant project County [2007] No. 8
110
2021 Semiannual Report of New Hope Liuhe Co., Ltd
of Liaoning Honglu Agricultural Bureau of
Development Co., Ltd Environment
al Protection
Acceptance Opinions on Completion
Tai’an
Acceptance of Environmental
County
Protection of the 15 million/a meat duck Taihuanyanzi
Bureau of June 29, 2008
slaughtering and packing plant project [2008] No. 6
Environment
of Liaoning Honglu Agricultural
al Protection
Development Co., Ltd
Approval of Environmental Impact
Panjin City
Assessment Report on the Meat Duck
Bureau of Panhuanfa
Cutting, Processing and Refrigeration December 30, 2010
Environment [2010] No. 350
Plant Project of Panjin Liuhe Farming
al Protection
Panjin Liuhe Co., Ltd
Farming Co., Acceptance Opinions on Completion
Ltd Acceptance of Environmental Panjin City
Protection of the Meat Duck Cutting, Bureau of Panhuanhan
November 29, 2012
Processing and Refrigeration Plant Environment [2012] No. 117
Project of Panjin Liuhe Farming Co., al Protection
Ltd
Donge
The 0.90 million/a poultry slaughtering County
Dongjibei
and refrigeration plant project of Donge Bureau of July 15, 2008
[2008 ] No. 55
Liuhe Lvjia Food Co., Ltd Environment
Dong’e Liuhe
al Protection
Lvjia Food Co.,
Acceptance Opinions on Completion Donge Environmental
Ltd
Acceptance of the 0.90 million/a County Protection
poultry slaughtering and refrigeration Bureau of December 29, 2010 Report on
plant project of Donge Liuhe Lvjia Environment Construction
Food Co. Ltd al Protection Project
Approval of Environmental Impact Gaotang
Assessment Report on the Meat Duck County
Gaohuanyan
Slaughtering Production Line Project of Bureau of February 24, 2012
[2012] No. 02
Liaocheng Liaocheng Liuhe Rongda Farming Co., Environment
Liuhe Rongda Ltd al Protection
Farming Co., Gaotang
Ltd Acceptance Opinions on Environmental County
Gaohuanyan
Protection of Completed Construction Bureau of July 21, 2017
[2017] No. 10
Project Environment
al Protection
Shenxian New Approval of Environmental Impact Shen County
Hope Liuhe Assessment Report on the 48 million/a Bureau of Shenhuanshen
May 28, 2013
Qingsizhai Duck Slaughtering Plant Project of Environment 【2013】No. 43
Food Co., Ltd Shenxian New Hope Liuhe Qingsizhai al Protection
111
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Food Co., Ltd
Acceptance Opinions on Completion
Acceptance of Environmental Shen County
Protection of the 48 million/a Duck Bureau of Shenhuanyan
July 28, 2014
Slaughtering Plant Project of Shenxian Environment 【2014】No. 12
New Hope Liuhe Qingsizhai Food Co., al Protection
Ltd
Yanggu
Yanggu Liuhe Opinions on Filing of the 32 million/a County
Yanghuanhan
Luxin Food Meat Duck Slaughtering Plant Project Bureau of December 28, 2016
[2016] No. 123
Co., Ltd of Yanggu Liuhe Luxin Food Co., Ltd Environment
al Protection
Approval of Environmental Impact Shouguang
Assessment Report on the Duck Product City Bureau
Shouhuanshenz
Food Processing Industrialization of March 30, 2007
i (2007) No. 2
Demonstration Project of Weifang Environment
Weifang
Tianhui Food Co., Ltd al Protection
Tianhui Food
Shouguang
Co., Ltd Acceptance Opinions on the Duck
City Bureau
Product Processing Packing
of October 2007 None
Industrialization Demonstration Project
Environment
of Weifang Tianhui Food Co., Ltd
al Protection
Anqiu City
Modern White-feathered Broiler
Bureau of Anhuanzi
Industry Integrated Development September 09, 2016
Environment [2016] No. 58
Weifang Project, Anqiu, Weifang City
al Protection
Heshengyuan
Anqiu City
Food Co., Ltd
Pollution Control Facilities Acceptance Bureau of Anhuanyanzi
January 2019
Form (Trial) Environment [2019] No. 034
al Protection
Luoyang
Review Opinions on New Broiler City Bureau
Luoshihuan
Processing Project of Luoyang Liuhe of July 30, 2008
(2008) No. 226
Huiquan Food Co., Ltd Environment
al Protection
Luoyang Liuhe Approval of Environmental Impact Provincial
Huiquan Food Assessment Report on the New Broiler Bureau of Yuhuanshen
November 14, 2008
Co., Ltd Processing Project of Luoyang Liuhe Environment (2008) No. 262
Huiquan Food Co., Ltd al Protection
Acceptance Opinions on Environmental Provincial
Protection of the New Broiler Bureau of Luohuanjianyan
October 15, 2010
Processing Project of Luoyang Liuhe Environment [2010] No. 52
Huiquan Food Co., Ltd al Protection
Hebi Liuhe Status Quo Environmental Impact Without Status Quo
112
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Zhizhen Food Assessment Report retroactively filed in official Environmental
Co., Ltd 2016 written Impact
replies Assessment
Report
Laicheng
Environmental Impact Assessment
District
Report on the Meat Poultry Processing Laihuanju
Bureau of August 19, 2011
Industrialization Project of Laiwu New 【2011】No. 82
Laiwu New Environment
Hope Liuhe Food Co., Ltd
Hope Liuhe al Protection
Food Co., Ltd Laiwu City
Environmental Impact Report on Air Laihuanbaogao
Bureau of
Pollution Control of Laiwu New Hope November 14, 2018 biao {2018}
Environment
Liuhe Food Co., Lt No. 11142
al Protection
Acceptance Monitoring Report on Ling County
Environmental Protection of the Environment
Linghuanjianzi
Completed 30,000/d Meat Duck al Testing December 01, 2009
2009 No. 39
Slaughtering Plant Project of Dezhou Station,
Dezhou Liuhe Liuhe Zhikang Food Co., Ltd Dezhou City
Zhikang Food Acceptance Opinions on Environmental
Co., Ltd Protection of on Environmental Ling County
Protection of the Completed 30000/d Bureau of Linghuanyan
May 10, 2010
Meat Duck Slaughtering Plant Project Environment 【2010】No. 3
of Dezhou Liuhe Zhikang Food Co., al Protection
Ltd
Approval of Environmental Impact
Linyi City
Feixian Liuhe Assessment Report on the 20 million/a
Bureau of Linhuanfa
Huahai Food Broiler Slaughtering and Processing April 27, 2012
Environment (2012)No. 51
Co., Ltd Plant Project of Feixian Liuhe Huahai
al Protection
Food Co., Ltd
Fuxin City
Approval of Environmental Impact Bureau of
Fuhuantaishens
Assessment Report on the 25 million/a Environment
January 10, 2017 hu [2017] No.
Broiler Slaughtering Plant Project of al Protection
Fuxin Liuhe 01
Fuxin Liuhe Farming Co., Ltd Taiping
Farming Co.,
Branch
Ltd Food
Approval of Completion Acceptance of
Branch Fuxin City
Environmental Facilities for the 15
Bureau of Fuhuanfa
million/a White-feathered Broiler March 10, 2010
Environment [2010] No. 49
Slaughtering Plant Project of Fuxin
al Protection
Liuhe Farming Co., Ltd Food Branch
Taiqian New Environmental impact report for Puyang City
Taihuangongjia
Hope Liuhe approval of 120,000 meat ducks/d Bureau of
July 27, 2020 nban (2019)
Luxin Food slaughterhouse project of Taiqian New Ecological
No. 26
Co., Ltd Hope Liuhe Luxin Food Co., Ltd Environment
113
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Leting
Broiler processing food production line
County
project of Leting New Hope Liuhe Lehuanshu
Bureau of September 21, 2012
Zhaotai Food Co., Ltd constructed by 【2012】No. 08
Environment
Leting Shengxiang Trade Co., Ltd
al Protection
Tangshan
City Bureau
Leting Liuhe
of
Xinmeizi Food
Ecological
Co., Ltd
Environment
Broiler processing food production line Lehuanpingbiao
Leting September 25, 2020
upgrading and transformation project 【2020】No. 49
CountyEnvir
onment
Leting
County
Branch
Qixia Approval of environmental impact
Refrigeration report on the factory building Qixia City
Factory of renovation and sewage plant Bureau of
2012-12-18 None
Shandong New reconstruction and expansion project of Environment
Hope Liuhe Qixia Refrigeration Plant of Shandong al Protection
Group Co., Ltd New Hope Liuhe Group Co., Ltd
Yantai City
Bureau of
Environmental protection acceptance
Ecological
and monitoring report on completion of
Environment Laihuanfa
20 million /a broiler slaughtering and May 01, 2020
Laiyang [2020]No. 12
processing line of Laiyang Tianye Food
Branch,
Co., Ltd
Shandong
Laiyang Tianye Province
Food Co., Ltd Yantai City
Bureau of
Ecological
Environment Laihuanfa
Acceptance opinions May 01, 2020
Laiyang [2020] No. 12
Branch,
Shandong
Province
Taian Taishan
Liuhe Food Co., None None
Ltd
Shandong New Approval of Environmental Impact Linyi City
Linhuanfa
Hope Liuhe Report of Shandong Dazhong Food Co., Bureau of July 07, 2007
【2007】No. 73
Group Co., Ltd Ltd on Relocation, Rebuilding and Environment
114
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Linyi Branch Expansion of 30,000t/a Poultry al Protection
Slaughtering, Cutting and Processing
Plant
Environmental Acceptance Opinion on
Shandong Dazhong Food Co., Ltd’s Linyi City
Project of Relocation, Rebuilding and Bureau of Linhuanyan
December 08, 2008
Expansion of 30,000t/a Poultry Environment 【2008】No.82
Slaughtering, Cutting and Processing al Protection
Plant
Environmental Impact Report and
Water Environmental Impact Report on
Ocean
20,000t/a Meat Product and Quick
University 2011-05-12 HDHP112137
Frozen Vegetable Processing Plant
of China
Project of Qingdao Liuhe Wanfu Food
Co., Ltd
Approval of Environmental Impact
Report and Water Environmental Laixi City
Impact Report on 20,000t/a Meat Environment Xihuanshen
2011-06-03
Product and Quick Frozen Vegetable al Protection [2011]No. 43
Processing Plant Project of Qingdao Bureau
Qingdao Liuhe
Liuhe Wanfu Food Co., Ltd
Wanfu Food
Completion Environmental Protection
Co., Ltd Laixi City
Acceptance and Testing Form for
Environment
20,000t/a Meat Product and Quick Xiyanjianzi
al 2014.1
Frozen Vegetable Processing Plant (2013) No. 027
Monitoring
Project of Qingdao Liuhe Wanfu Food
Station
Co., Ltd
Letter regarding Completion
Environmental Protection Acceptance Laixi City
Opinion on 20,000t/a Meat Product Environment Xihuanyan
2015-02-27
and Quick Frozen Vegetable Processing al Protection [2015] No. 9
Plant Project of Qingdao Liuhe Wanfu Bureau
Food Co., Ltd
Approval of Environmental Impact
Linfen City
Fenxi New Report on Broiler Breeding and
Environment Linhuanshenfa
Hope Liuhe Slaughtering and Feed Processing 2010-11-17
al Protection [2010] No. 16
Food Co., Ltd Project of Fenxi Hongchang Breeding
Bureau
Co., Ltd
Approval of Beijing Pinggu District Pinggu
Bureau of Environmental Protection District
Beijing Jingpinghuanpi
regarding Environmental Impact Report Bureau of
Kinghey Food 2014 ngshen [2014]
on Project of Processing of Quick Environment
Co., Ltd No. 450
Frozen Food, Meat Products and al
Supporting Facilities Protection,
115
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Pinggu
District
Bureau of Pinghuanyan
Acceptance opinions 2015
Environment [2015] No. 71
al
Protection,
Approval of Environmental Impact Provincial
Report on Pig Slaughtering and Meat Bureau of Jihuanguan
2004
Packing Project of Beijing Kinghey Environment [2014] No. 193
Food Co., Ltd in Nangong al Protection
Hebei Kinghey
Hebei
Meat Industry
Provincial
Co., Ltd
Department Jihuanyan
Acceptance opinions 2010
of (2010) No. 006
Environment
al Protection
Shenyang
City Bureau
of
Shennonghuanb
Pig Slaughtering Project of Liaoning Environment
2005 aoshenzi [2005]
Kinghey Food Co., Ltd al Protection
No. 7
Puhe New
Town
Liaoning
Branch
Kinghey Food
Shenyang
Co., Ltd
City Bureau
of
Environment Puhuanfenyan
Acceptance opinions 2010
al Protection [2010] No. 71
Puhe New
Town
Branch
Xinjin
Environmental protection acceptance County of
Xinhuanyan
application registration card for Bureau of September 08, 2009
[2009] No. 17
completion of construction project Environment
al Protection
Chengdu Hope Xinjin
Food Co., Ltd Environmental protection acceptance County of
Xinhuanyan
application registration card for Bureau of September 08, 2009
[2009] No. 18
completion of construction project Environment
al Protection
Low-temperature meat product Xinjin Xinhuanjian
October 14, 2008
processing plant (phase I and II) County of (2008)No. 79
116
2021 Semiannual Report of New Hope Liuhe Co., Ltd
construction project Bureau of
Environment
al Protection
Xinjin
High-temperature meat product County of
Xinhuanjian
processing plant (phase III) construction Bureau of November 12, 2008
(2008) No. 80
project Environment
al Protection
Review and Approval of environmental Xinjin
impact registration form of 3,000t/a County Xinshenyuanhu
quick frozen and prepared food Bureau of January 05, 2016 anping [2016]
production line project of Chengdu Administrati No. 1
Xiwang Food Co., Ltd ve Approval
Review and Approval of environmental
impact report of 35,000 t/a Xinjin
high-temperature meat products County of
Xinhuanjianfu
production line renovation project of Bureau of July 3, 2014
[2014] No. 67
Chengdu Xiwang Food Co., Ltd by Environment
Xinjin County Bureau of Environmental al Protection
Protection
Environmental impact report of Zhejiang
Guohuanpingzh
Zhejiang Xindongwan Agricultural Institute of
Zhejiang August 01, 2010 engyizi No.
Development Co., Ltd (draft for Hydraulics
Xindongwan 2032
approval) & Estuary
Agricultural
Xiaoshan
Development The pig farm remediation project of
District
Co., Ltd Zhejiang Xindongwan Agricultural June 2016
Agricultural
Development Co., Ltd (draft for filing)
Bureau,
Hangzhou Xiaoshan
The pig farm remediation project of
Guanglv District
Hangzhou Guanglv Breeding Co., Ltd June 2016
Breeding Co., Agricultural
(draft for filing)
Ltd Bureau,
Wenzhou
Ruian New
Approval Opinion on Environmental City
Hope Liuhe Wenhuanruijian
Impact Report of Ruian New Hope Ecological July 2020
Farming Co., (2020) No. 56
Modern Agricultural Industry Park Protection
Ltd
Bureau
Quzhou City
Examination Opinion on Environmental Ecological
Zhejiang Yihai
Impact Report on Premium Pig and
Agricultural Qujianghuanjia
Eco-friendly Farming Base Project of Environment March 2020
Development n (2020) No.7
Zhejiang Yihai Agricultural al Bureau
Co., Ltd
Development Co., Ltd Qujiang
Branch
117
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Ningbo City
Approval of Environmental Impact
Ecological
Ningbo New Report on Eco-friendly Cyclic Pig
and
Hope Liuhe Farming Base Project of Ningbo New F.H.J.G.Z.C.N.
Environment July 2020
Farming Co., Hope Liuhe Farming Co., Ltd in (2020) No. 1
al Bureau
Ltd Fenghua, Ningbo, Zhejiang (informed
Fenghua
commitment system)
Branch
Contingency Plan for Environmental Emergencies
Filed or
Company name Filing authority Filing No. Time
not
Linyi County
Bureau of
Linyi Liuhe Food Co., Ltd Filed 3711424-2019-037-L November 2019
Environmental
Protection
Qiu County
Qiuxian Liuhe Kangyuan Food Bureau of
Filed 031020180913 September 2018
Co., Ltd Enviornmental
Proetction
Lanling County
Lanling New Hope Liuhe Bureau of
Filed 371327-2019-03-L March 04, 2019
Hongjun Food Co., Ltd Environmental
Protection
Pingyi County
Pingyi Refrigeration Plant of
Bureau of
Shandong New Hope Liuhe Filed 371326-2018-012-L May 05, 2018
Environmental
Group Co., Ltd
Protection
Pingdu City
Bureau of 370283-20170515-079-
Qingdao Tianrun Food Co., Ltd Filed May 15, 2017
Environmental M
Protection
Lvliang City
Ecological and
Xiaoyi New Hope Liuhe Food
Filed Environmental 141181-2019-0013-M May 06, 2019
Co., Ltd
Bureau Xiaoyi
Branch
Yishui County
Yishui New Hope Liuhe Food Bureau of
Filed 371323-2019-012-M October 24, 2019
Co., Ltd Environmental
Protection
Handan City
Emergency
Guantao Liuhe Food Co., Ltd Filed 130433-Q7-2017-164 April 24, 2017
Headquarters for
Heavily Polluted
118
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Weathers
Binzhou City
Binzhou Liuhe Longda Farming Bureau of
Filed 371602-2019-0001-L January 04, 2019
Co., Ltd Environmental
Protection
Binzhou City
Ecological and
Wudi Liuhe Xinyang Food Co.,
Filed Environmental
Ltd
Bureau Wudi
Branch
Zouping County
Bureau of
Zouping Liuhe Livestock Co., Ltd Filed 371626-2016-084-L May 23, 2016
Environmental
Protection
Heze City Bureau
of Ecological
Shanxian Liuhe Feed Co., Ltd Environment Shan
Filed 371722-2020-017-M 2020-07-22
Food Branch CountyEnvironme
nt Shan County
Branch
In
Caoxian Liuhe Food Co., Ltd
progress
Jiaxiang County
Jiaxiang New Hope Liuhe Food Bureau of
Filed 370829-001-M January 07, 2019
Co., Ltd Environmental
Protection
Yuncheng County
Bureau of
Yuncheng Liuhe Food Co., Ltd Filed 371725-2019-022-L December 25, 2019
Environmental
Protection
Anshan City
Bureau of
Anshan Liuhe Food Co., Ltd Filed Ecological 210321-2020-036-L September 29, 2020
Environment
Taian Branch
Dawa District
Bureau of
Panjin Liuhe Farming Co., Ltd Filed Environmental 211121-2020-6-L April 20, 2020
Protection, Panjin
City
Donge County
Bureau of 91371524554382151H00
Dong’e Liuhe Lvjia Food Co., Ltd Filed 2018-12-4
Environmental 1Y
Protection
119
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Gaotang County
Liaocheng Liuhe Rongda Farming Bureau of 91371526798652744100
Filed 2018-12-13
Co., Ltd Environmental 1Q
Protection
Shen County
Shenxian New Hope Liuhe Bureau of 91371522081794657Y00
Filed 2018-12-14
Qingsizhai Food Co., Ltd Environmental 1X
Protection
Yanggu County
Yanggu Liuhe Luxin Food Co., Bureau of 91371521684826830M0
Filed 2018-12-3
Ltd Environmental 01Q
Protection
Shouguang City
Bureau of
Weifang Tianhui Food Co., Ltd Filed 370783-2018-058M January 30, 2018
Environmental
Protection
Anqiu City Bureau
Weifang Heshengyuan Food Co.,
Filed of Environmental 370784-2018-045-L October 24, 2018
Ltd
Protection
Luoyang City
Luoyang Liuhe Huiquan Food Bureau of
Filed 410381201402 January 10, 2014
Co., Ltd Environmental
Protection
Hebi City Bureau
of Environmental
Protection’s
Hebi Liuhe Zhizhen Food Co., Ltd Filed 4016212017008H July 28, 2017
Headquarters for
Environmental
Emergencies
Laiwu Bureau for
Construction and
371202（AHIDZ）
Development of
Laiwu New Hope Liuhe Food Co., -2018-011-larger[larger-a
Filed Agricultural December 24, 2018
Ltd ir (Q1)+ordinary-water
High-tech Industry
(Q1)]
Demonstration
Zone
Dezhou City
Bureau of
Dezhou Liuhe Zhikang Food Co.,
Filed Ecological 3714212019023L November 20, 2019
Ltd
Environment
Lingcheng Branch
Fei County Bureau
Feixian Liuhe Huahai Food Co.,
Filed of Environmental 371325-2017-030-L August 23, 2017
Ltd
Protection
120
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Fuxin City Bureau
Fuxin Liuhe Farming Co., Ltd
Filed of Environmental 2018-07-1
Food Branch
Protection
Taiqian County
Taiqian New Hope Liuhe Luxin Bureau of
Filed 4109272020048L December 23, 2020
Food Co., Ltd Environmental
Protection
Tangshan City
Bureau of
Environmental
Laoting Liuhe Xinmeizi Food Co.,
Filed Protection Leting 130225-2019-011-L July 8, 2019
Ltd
CountyProtection
Leting County
Branch
Qixia Refrigeration Factory of Qixia City Bureau
Shandong New Hope Liuhe Filed of Environmental 370686-2018-067-M August 2018
Group Co., Ltd Protection
Taian Taishan Liuhe Food Co.,
Not filed November 2019
Ltd
Hedong District
Shandong New Hope Liuhe
Filed Environmental HJYA-2019 November 04, 2019
Group Co., Ltd Linyi Branch
Protection Bureau
Qingdao City
Ecological and
Qingdao Liuhe Wanfu Food Co.,
Filed Environmental 3702852031124L May 12, 2021
Ltd
Bureau Laixi
Branch
Fenxi New Hope Liuhe Food Co.,
Not filed
Ltd
Laiyang City
Bureau of
Laiyang Tianye Food Co., Ltd Filed 370682-2018-23-L March 2018
Environmental
Protection
Pinggu District
Bureau of
Beijing Kinghey Food Co., Ltd Filed 110117-2018-036-M December 2018
Environmental
Protection
Nangong City
Hebei Kinghey Meat Industry Co., Bureau of
Filed 2019-12-M December 2019
Ltd Environmental
Protection
Shenyang City
Liaoning Kinghey Food Co., Ltd Filed Bureau of 210113-2020-196-M September 2020
Environmental
121
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Protection Puhe
New Town Branch
Xinjin Bureau of
Chengdu Xiwang Food Co., Ltd Filed Ecological 5101322020047L June 2020
Environment,
Zhejiang Xindongwan
In
Agricultural Development Co.,
progress
Ltd
Hangzhou Guanglv Breeding Co., In
Ltd progress
Ruian New Hope Liuhe Farming In
Co., Ltd progress
Zhejiang Yihai Agricultural In
Development Co., Ltd progress
Ningbo New Hope Liuhe Farming In
Co., Ltd progress
In-house Environmental Monitoring Program
Monitori
Compa Monit Monito
Monitored ng Standards Emission Analytic Source of
ny oring ring
item frequenc adopted limits methods method
name point method
y
Dichromate
COD 450mg/L HJ828-2017
process
Determination
of total nitrogen
by flow
Water
injection
Pollutant
Disch analysis (FIA)
Total Discharge
arge 50mg/L and HJ 668-2013
nitrogen Standard for
outlet N-(1-naphthyl)e
Linyi Meat
s of thylene diamine
Liuhe Online Processing
sewa Once per dihydrochloride
Food monitor Industry
ge 6 hours spectrophotomet
Co., ing GB13457-92
treat ry
Ltd and
ment Nessler’s
agreements
statio Ammonia reagent
with sewage 35mg/L HJ535-2009
n nitrogen spectrophotomet
treatment
ry
plant
Ammonium
Total
molybdate
phosphoru 6mg/L HJ 671-2013
spectrophotomet
s
ric method
pH 6-8.5 Glass electrode GB 6920-1986
122
2021 Semiannual Report of New Hope Liuhe Co., Ltd
method
Suspended Gravimetric
200mg/L GB11901-89
solids method
Dilution and
BOD5 120mg/L inoculation HJ505-2009
method
Animal Manual
Once per Infrared
and monitor
quarter 50mg/L spectrophotomet HJ 637-2012
vegetable ing
ry
oils
Multi-tube
Coliform fermentation
10000 HJ637-2012
groups and filtration
membrane
Non-dispersive
Nitrogen Once per Boiler Air 150mg/N infrared
HJ 692-2014
oxides month Pollutant m3 absorption
Discharge method
Boile
Standard GB Non-dispersive
r
Sulfide Manual 13271-2014, 50mg/N infrared
disch HJ 629-2011
dioxide monitor Boiler Air m3 absorption
arge
ing Pollutant method
outlet Once per
Discharge 10mg/N Gravimetric HJ/T
s Fumes year
Standard m3 method 398-2007
Ringelman DB37 Ringelmann
n 2374-2018 1 fume blackness HJ/T398-2007
blackness chart
Odor
Triangle odor GB/T14675-1
concentrati Malodorous 20
bag method 993
Batter on Pollutant
Manual Once per
y Ammonia Discharge Ion selective
monitor half a 1.5mg/N GB/T14669-1
limit (ammonia Standard electrode
ing year m3 993
odor gas) GB14554-93 method
Hydrogen , 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Disch Water Dichromate
COD 450mg/L HJ828-2017
arge Pollutant process
Qiuxian
outlet Discharge Nessler’s
Liuhe
s of Ammonia Online Standard for reagent
Kangyu Once per 35mg/L HJ535-2009
sewa nitrogen monitor Meat spectrophotomet
an Food 2 hours
ge ing Processing ry
Co.,
treat Industry Glass electrode
Ltd pH 6-8.5 GB 6920-1986
ment GB13457-92 method
statio Total and ≤5mg/L Ammonium GB/T11893-1
123
2021 Semiannual Report of New Hope Liuhe Co., Ltd
n phosphoru agreements molybdate 989
s with sewage spectrophotomet
treatment ric method
plant Alkaline
potassium
Total persulfate
≤40mg/L HJ636-2012
nitrogen digestion UV
spectrophotomet
ric method
Suspended Gravimetric
200mg/L GB11901-89
solids method
Dilution and
BOD5 120mg/L inoculation HJ505-2009
method
Animal Manual
Once per Infrared
and monitor
quarter 50mg/L spectrophotomet HJ 637-2012
vegetable ing
ry
oils
Multi-tube
Coliform fermentation
10000 HJ637-2012
groups and filtration
membrane
Boiler Air Non-dispersive
Nitrogen Once per Pollutant 150mg/N infrared
HJ 692-2014
oxides month Discharge m3 absorption
Boile
Standard GB method
r
Manual 13271-2014, Non-dispersive
disch
Sulfide monitor Boiler Air 50mg/N infrared
arge HJ 629-2011
dioxide ing Pollutant m3 absorption
outlet Once per
Discharge method
s year
Standard
Particulate 10mg/N Gravimetric HJ/T
DB37
matter m3 method 398-2007
2374-2018
Odor
concentrati Malodorous 20
Batter on Pollutant
Manual Once per
y Ammonia Discharge Ion selective
monitor half a 1.5mg/N GB/T14669-1
limit (ammonia Standard electrode
ing year m3 993
odor gas) GB14554-93 method
Hydrogen , 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Lanling Disch Online Notice on Dichromate
COD Once per 50mg/L HJ828-2017
New arge monitor Approval process
6 hours
Hope outlet Total ing and Issue of 20mg/L Determination HJ 668-2013
124
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Liuhe s of nitrogen the of total nitrogen
Hongju sewa Modification by flow
n Food ge Forms for injection
Co., treat four analysis (FIA)
Ltd ment Standards and
statio including the N-(1-naphthyl)e
n Comprehens thylene diamine
ive Emission dihydrochloride
Standard for spectrophotomet
Water ry
Pollutants Nessler’s
Ammonia along the reagent
5mg/L HJ535-2009
nitrogen South-to-No spectrophotomet
rth Water ry
Transfer Ammonium
Total
Project of molybdate
phosphoru 0.3mg/L HJ 671-2013
Shandong spectrophotomet
s
Province, ric method
Luzhijianbia Glass electrode
pH 6-8.5 GB 6920-1986
ofa [2011] method
Suspended No. 35, Gravimetric
20mg/L GB11901-89
solids Water method
Pollutant Dilution and
BOD5 Discharge 10mg/L inoculation HJ505-2009
Standard for method
Animal Manual Meat
Once per Processing Infrared
and monitor
month Industry GB 3mg/L spectrophotomet HJ 637-2012
vegetable ing
13457-92 ry
oils
Multi-tube
Coliform fermentation
10000 HJ637-2012
groups and filtration
membrane
Non-dispersive
Nitrogen Once per 200mg/N infrared
HJ 692-2014
oxides month m3 absorption
Boile
Boiler Air method
r
Manual Pollutant Non-dispersive
disch
Sulfide monitor Discharge 50mg/N infrared
arge HJ 629-2011
dioxide ing Standard m3 absorption
outlet Once per
DB37 method
s year
2374-2018 10mg/N Gravimetric HJ/T
Fumes
m3 method 398-2007
Ringelman 1 Ringelmann HJ/T398-2007
125
2021 Semiannual Report of New Hope Liuhe Co., Ltd
n fume blackness
blackness chart
Odor
Triangle odor GB/T14675-1
concentrati 20
Malodorous bag method 993
Batter on
Manual Once per Pollutant
y Ammonia Ion selective
monitor half a Discharge 1.5mg/N GB/T14669-1
limit (ammonia electrode
ing year Standard m3 993
odor gas) method
GB14554-93
Hydrogen 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Dichromate
COD 500mg/L HJ828-2017
process
Determination
of total nitrogen
by flow
injection
analysis (FIA)
Total
70mg/L and HJ 668-2013
nitrogen
N-(1-naphthyl)e
Water
thylene diamine
Quality
Online dihydrochloride
Once per Standard for
monitor spectrophotomet
Pingyi 6 hours Sewage
Disch ing ry
Refrige Discharged
arge Nessler’s
ration into Urban
outlet Ammonia reagent
Plant of Sewers 45mg/L HJ535-2009
s of nitrogen spectrophotomet
Shando GB/T
sewa ry
ng New 31962-2015,
ge Ammonium
Hope Total Meat
treat molybdate
Liuhe phosphoru Processing 8mg/L HJ 671-2013
ment spectrophotomet
Group s Industry
statio ric method
Co., Water
n Glass electrode
Ltd pH Pollutant 6-8.5 GB 6920-1986
method
Emission
Suspended Gravimetric
Standard GB 200mg/L GB11901-89
solids method
13457-92
Dilution and
BOD5 250mg/L inoculation HJ505-2009
Manual method
Once per
Animal monitor
quarter Infrared
and ing
50mg/L spectrophotomet HJ 637-2012
vegetable
ry
oils
Coliform Multi-tube
10000 HJ637-2012
groups fermentation
126
2021 Semiannual Report of New Hope Liuhe Co., Ltd
and filtration
membrane
Non-dispersive
Nitrogen Once per 200mg/N infrared
HJ 692-2014
oxides month m3 absorption
method
Boile Boiler Air
Non-dispersive
r Pollutant
Sulfide Manual 50mg/N infrared
disch Discharge HJ 629-2011
dioxide monitor m3 absorption
arge Standard
ing method
outlet Once per DB37
10mg/N Gravimetric HJ/T
s Fumes year 2374-2018
m3 method 398-2007
Ringelman Ringelmann
n 1 fume blackness HJ/T398-2007
blackness chart
Odor
Triangle odor GB/T14675-1
concentrati Malodorous 20
bag method 993
Batter on Pollutant
Manual Once per
y Ammonia Discharge Ion selective
monitor half a 1.5mg/N GB/T14669-1
limit (ammonia Standard electrode
ing year m3 993
odor gas) GB14554-93 method
Hydrogen , 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Dichromate
COD Comprehens 60mg/L HJ828-2017
process
ive Emission
Determination
Standard of
of total nitrogen
Water
by flow
Pollutants in
injection
Disch the
analysis (FIA)
arge Total Peninsula
30mg/L and HJ 668-2013
Qingda outlet nitrogen Basin of
N-(1-naphthyl)e
o s of Shandong
Online thylene diamine
Tianrun sewa Once per Province
monitor dihydrochloride
Food ge 2 hours DB37/676-2
ing spectrophotomet
Co., treat 007,
ry
Ltd ment Water
Nessler’s
statio Pollutant
Ammonia reagent
n Emission 10mg/L HJ535-2009
nitrogen spectrophotomet
Standard for
ry
Meat
Ammonium
Processing
molybdate
Phosphates Industry GB 1mg/L HJ 671-2013
spectrophotomet
13457-92
ric method
127
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Glass electrode
pH June 9 GB 6920-1986
method
Suspended Gravimetric
30mg/L GB11901-89
solids method
Dilution and
BOD5 20mg/L inoculation HJ505-2009
method
Animal Manual
Once per Infrared
and monitor
month 5mg/L spectrophotomet HJ 637-2012
vegetable ing
ry
oils
Multi-tube
Coliform fermentation
10000 HJ637-2012
groups and filtration
membrane
Catering Non-dispersive
Nitrogen Industry Oil 200mg/N infrared
HJ 692-2014
oxides Fume m3 absorption
Emission method
Standard Non-dispersive
Sulfide GB18483-20 50mg/N infrared
HJ 629-2011
dioxide 01 m3 absorption
Provincial method
Boile
Boiler Air 10mg/N Gravimetric HJ/T
r Fumes
Manual Once per Pollutant m3 method 398-2007
disch
monitor half a Emission
arge
ing year Standard
outlet
"Ultra-low
s
Emission
Dyeing Catering
Standard No.
and 2.0mg/N Industry Oil GB18483-200
2
finishing m3 Fume Emission 1
Modification
fumes Standard
Form
Luzhijianbia
ofa [2016]
No. 46.
Odor
Triangle odor GB/T14675-1
concentrati Malodorous 20
bag method 993
Batter on Pollutant
Manual Once per
y Ammonia Discharge Ion selective
monitor half a 1.5mg/N GB/T14669-1
limit (ammonia Standard electrode
ing year m3 993
odor gas) GB14554-93 method
Hydrogen , 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
128
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Dichromate
COD 40mg/L HJ828-2017
process
Online
Once per Nessler’s
monitor Surface
Ammonia 4 hours reagent
ing Water 2.0mg/L HJ535-2009
nitrogen spectrophotomet
Environment
ry
Disch al Quality
Glass electrode
arge pH Standard 6-9 GB 6920-1986
method
outlet GB3838-200
Suspended Gravimetric
s of 2 10mg/L GB11901-89
solids method
sewa Pollutant
Dilution and
ge Discharge
BOD5 10mg/L inoculation HJ505-2009
treat Standard for
Manual method
ment Once per Urban
Animal monitor
statio month Sewage Infrared
and ing
n Treatment 1mg/L spectrophotomet HJ 637-2012
vegetable
Plants ry
oils
GB18918-20
Multi-tube
02
Coliform fermentation
Xiaoyi 1000/L HJ637-2012
groups and filtration
New
membrane
Hope
Non-dispersive
Liuhe Boiler Air
Nitrogen 150mg/N infrared
Food Pollutant HJ 692-2014
oxides m3 absorption
Co., Discharge
method
Ltd Boile Standard GB
Non-dispersive
r 13271-2014,
Sulfide Manual Once per 50mg/N infrared
disch Comprehens HJ 629-2011
dioxide monitor half a m3 absorption
arge ive Air
ing year method
outlet Pollutant
10mg/N Gravimetric HJ/T
s Fumes Discharge
m3 method 398-2007
Standard
Ringelman Ringelmann
GB16297-19
n 1 fume blackness HJ/T398-2007
96,
blackness chart
Odor
Disch Triangle odor GB/T14675-1
concentrati 2000
arge bag method 993
on Malodorous
outlet
Ammonia Pollutant Ion selective
s for Manual Once per GB/T14669-1
(ammonia Discharge 4.9kg/h electrode
odor monitor half a 993
gas) Standard method
treat ing year
Hydrogen GB14554-93 Gas GB/T14678-1
ment 0.33kg/h
sulfide , chromatography 993
Batter Odor Triangle odor GB/T14675-1
20
y concentrati bag method 993
129
2021 Semiannual Report of New Hope Liuhe Co., Ltd
limit on
odor Ammonia Ion selective
1.5mg/N GB/T14669-1
(ammonia electrode
m3 993
gas) method
Hydrogen 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Dichromate
COD 500mg/L HJ828-2017
process
Determination
of total nitrogen
by flow
injection
analysis (FIA)
Total
70mg/L and HJ 668-2013
nitrogen
N-(1-naphthyl)e
thylene diamine
Water
Online dihydrochloride
Once per Quality
monitor spectrophotomet
2 hours Standard for
ing ry
Sewage
Disch Nessler’s
Discharged
arge Ammonia reagent
into Urban 45mg/L HJ535-2009
outlet nitrogen spectrophotomet
Yishui Sewers
s of ry
New GB/T
sewa Ammonium
Hope Total 31962-2015,
ge molybdate
Liuhe phosphoru Meat 8mg/L HJ 671-2013
treat spectrophotomet
Food s Processing
ment ric method
Co., Industry
statio Glass electrode
Ltd pH Water 6-8.5 GB 6920-1986
n method
Pollutant
Suspended Gravimetric
Emission 200mg/L GB11901-89
solids method
Standard GB
Dilution and
13457-92
BOD5 250mg/L inoculation HJ505-2009
method
Animal Manual
Once per Infrared
and monitor
quarter 50mg/L spectrophotomet HJ 637-2012
vegetable ing
ry
oils
Multi-tube
Coliform fermentation
10000 HJ637-2012
groups and filtration
membrane
Batter Odor Manual Once per Malodorous Triangle odor GB/T14675-1
20
y concentrati monitor half a Pollutant bag method 993
130
2021 Semiannual Report of New Hope Liuhe Co., Ltd
limit on ing year Discharge
odor Ammonia Standard Ion selective
1.5mg/N GB/T14669-1
(ammonia GB14554-93 electrode
m3 993
gas) , method
Hydrogen 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Dichromate
COD 50mg/L HJ828-2017
process
Determination
of total nitrogen
by flow
Discharge injection
Standard for analysis (FIA)
Total
Urban 15mg/L and HJ 668-2013
nitrogen
Sewage N-(1-naphthyl)e
Treatment thylene diamine
Online Plants dihydrochloride
Once per
monitor （GB18918- spectrophotomet
2 hours
ing 2002） ry
Disch Meat Nessler’s
arge Ammonia Processing reagent
5mg/L HJ535-2009
outlet nitrogen Industry spectrophotomet
s of Water ry
Guanta
sewa Pollutant Ammonium
o Liuhe Total
ge Discharge molybdate
Food phosphoru 0.5mg/L HJ 671-2013
treat Standard spectrophotomet
Co., s
ment （GB13457- ric method
Ltd
statio 92） Glass electrode
pH 6-9 GB 6920-1986
n Water method
Suspended Quality Gravimetric
10mg/L GB11901-89
solids Standard for method
Farmland Dilution and
BOD5 Irrigation 10mg/L inoculation HJ505-2009
（GB5084-2 method
Animal 005）Dry
Once per Infrared
and Manual Farming
month 1mg/L spectrophotomet HJ 637-2012
vegetable monitor Standard.
ry
oils ing
Multi-tube
Coliform fermentation
5000 HJ637-2012
groups and filtration
membrane
Boile Nitrogen Once per Boiler Air 200mg/N Non-dispersive
HJ 692-2014
r oxides year Pollutant m3 infrared
131
2021 Semiannual Report of New Hope Liuhe Co., Ltd
disch Discharge absorption
arge Standard method
outlet (GB13271-2 Non-dispersive
s Sulfide 014) 50mg/N infrared
HJ 629-2011
dioxide m3 absorption
method
Once per 10mg/N Gravimetric HJ/T
Fumes
month m3 method 398-2007
Odor
Disch Triangle odor GB/T14675-1
concentrati Malodorous 2000
arge bag method 993
on Pollutant
outlet
Ammonia Discharge Ion selective
s for GB/T14669-1
(ammonia Standard 4.9kg/h electrode
odor 993
gas) GB14554-93 method
treat
Hydrogen , Gas GB/T14678-1
ment 0.33kg/h
sulfide chromatography 993
Disch Catering
arge Industry Oil
Catering
outlet Once per Fume
2.0mg/N Industry Oil GB18483-200
s for Fumes half a Emission
m3 Fume Emission 1
cante year Standard
Standard
en GB18483-20
fumes 01
Odor
Triangle odor GB/T14675-1
concentrati Malodorous 20
bag method 993
Batter on Pollutant
y Ammonia Discharge Ion selective
1.5mg/N GB/T14669-1
limit (ammonia Standard electrode
m3 993
odor gas) GB14554-93 method
Hydrogen , 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Water Dichromate
COD 500mg/L HJ828-2017
Quality process
Disch
Standard for Determination
arge
Sewage of total nitrogen
Binzho outlet
Discharged by flow
u Liuhe s of
Manual Once per into Urban injection
Longda sewa
monitor half a Sewers analysis (FIA)
Farmin ge Total
ing year GB/T 70mg/L and HJ 668-2013
g Co., treat nitrogen
31962-2015, N-(1-naphthyl)e
Ltd ment
Meat thylene diamine
statio
Processing dihydrochloride
n
Industry spectrophotomet
Water ry
132
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Pollutant Nessler’s
Ammonia Emission reagent
45mg/L HJ535-2009
nitrogen Standard GB spectrophotomet
13457-92 ry
Glass electrode
pH 6-8.5 GB 6920-1986
method
Suspended Gravimetric
400mg/L GB11901-89
solids method
Dilution and
BOD5 300mg/L inoculation HJ505-2009
method
Animal
Infrared
and
60mg/L spectrophotomet HJ 637-2012
vegetable
ry
oils
Multi-tube
Coliform fermentation
10000 HJ637-2012
groups and filtration
membrane
Odor
Disch Triangle odor GB/T14675-1
concentrati 2000
arge bag method 993
on
outlet
Ammonia Ion selective
s for GB/T14669-1
(ammonia 4.9kg/h electrode
odor 993
gas) Malodorous method
treat
Hydrogen Pollutant Gas GB/T14678-1
ment 0.33kg/h
sulfide Discharge chromatography 993
Odor Standard
Triangle odor GB/T14675-1
concentrati GB14554-93 20
bag method 993
Batter on ,
y Ammonia Ion selective
1.5mg/N GB/T14669-1
limit (ammonia electrode
m3 993
odor gas) method
Hydrogen 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Disch Dichromate
COD 500mg/L HJ828-2017
arge Meat process
Wudi
outlet Processing Determination
Liuhe
s of Online Industry of total nitrogen
Xinyan Once per
sewa monitor Water by flow
g Food Total 6 hours
ge ing Pollutant 70mg/L injection HJ 668-2013
Co., nitrogen
treat Discharge analysis (FIA)
Ltd
ment Standard GB and
statio 13457-92 N-(1-naphthyl)e
133
2021 Semiannual Report of New Hope Liuhe Co., Ltd
n thylene diamine
dihydrochloride
spectrophotomet
ry
Nessler’s
Ammonia reagent
45mg/L HJ535-2009
nitrogen spectrophotomet
ry
Glass electrode
pH 6-8.5 GB 6920-1986
method
Suspended Gravimetric
300mg/L GB11901-89
solids method
Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Animal
Infrared
and
50mg/L spectrophotomet HJ 637-2012
vegetable
ry
oils
Multi-tube
Coliform fermentation
10000 HJ637-2012
groups and filtration
membrane
Odor Manual
Disch Once per Triangle odor GB/T14675-1
concentrati monitor 2000
arge quarter bag method 993
on ing
outlet
Ammonia Ion selective
s for GB/T14669-1
(ammonia 4.9kg/h electrode
odor 993
gas) Malodorous method
treat
Hydrogen Pollutant Gas GB/T14678-1
ment 0.33kg/h
sulfide Discharge chromatography 993
Odor Standard
Triangle odor GB/T14675-1
concentrati GB14554-93 20
bag method 993
Batter on ,
y Ammonia Ion selective
1.5mg/N GB/T14669-1
limit (ammonia electrode
m3 993
odor gas) method
Hydrogen 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Zoupin Disch Water Dichromate
COD 500mg/L HJ828-2017
g Liuhe arge Online Quality process
Once per
Livesto outlet monitor Standard for Determination
Total 6 hours
ck Co., s of ing Sewage 70mg/L of total nitrogen HJ 668-2013
nitrogen
Ltd sewa Discharged by flow
134
2021 Semiannual Report of New Hope Liuhe Co., Ltd
ge into Urban injection
treat Sewers analysis (FIA)
ment GB/T and
statio 31962-2015, N-(1-naphthyl)e
n Meat thylene diamine
Processing dihydrochloride
Industry spectrophotomet
Water ry
Pollutant Nessler’s
Ammonia Emission reagent
45mg/L HJ535-2009
nitrogen Standard GB spectrophotomet
13457-92 ry
Glass electrode
pH 6-8.5 GB 6920-1986
method
Suspended Gravimetric
300mg/L GB11901-89
solids method
Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Animal
Infrared
and
50mg/L spectrophotomet HJ 637-2012
vegetable
ry
oils Manual Once per
monitor half a Multi-tube
Coliform ing year fermentation
10000 HJ637-2012
groups and filtration
membrane
Odor
Triangle odor GB/T14675-1
concentrati Malodorous 20
bag method 993
Batter on Pollutant
y Ammonia Discharge Ion selective
1.5mg/N GB/T14669-1
limit (ammonia Standard electrode
m3 993
odor gas) GB14554-93 method
Hydrogen , 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Disch Water Dichromate
COD 500mg/L HJ828-2017
Shanxia arge Quality process
n Liuhe outlet Standard for Determination
Feed s of Online Sewage of total nitrogen
Once per
Co., sewa monitor Discharged by flow
Total 6 hours
Ltd ge ing into Urban 70mg/L injection HJ 668-2013
nitrogen
Food treat Sewers analysis (FIA)
Branch ment GB/T and
statio 31962-2015, N-(1-naphthyl)e
135
2021 Semiannual Report of New Hope Liuhe Co., Ltd
n Notice on thylene diamine
the Approval dihydrochloride
and spectrophotomet
Publication ry
of the Nessler’s
Ammonia Modification reagent
21mg/L HJ535-2009
nitrogen List of Four spectrophotomet
Standards, ry
Including Ammonium
Total
the molybdate
phosphoru 8mg/L HJ 671-2013
Comprehens spectrophotomet
s
ive ric method
Discharge Glass electrode
pH 6-8.5 GB 6920-1986
Standard for method
Suspended Water Gravimetric
300mg/L GB11901-89
solids Pollutants method
Along the Dilution and
BOD5 South-to-No 250mg/L inoculation HJ505-2009
rth Water method
Transfer
Project of
Shandong
Province,
Luzhijianbia
ofa [2011]
No. 35,
Notice on
the Approval
Manual
Once per and Issuance
monitor
quarter of the
ing
modification
Total salt 1600mg/ Gravimetric
list of four HJ/T 51-1999
content L method
standards
including the
Comprehens
ive
Discharge
Standard for
Water
Pollutants
along the
South-to-No
rth Water
Transfer
136
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Project of
Shandong
Province,
adding the
limits of
total salt
content
indicator,
Luzhijianbia
ofa [2014]
No. 7
Boiler Air Non-dispersive
Nitrogen Pollutant 100mg/N infrared
HJ 692-2014
oxides Emission m3 absorption
Standard method
DB37 Non-dispersive
Sulfide 2374-2018, 50mg/N infrared
HJ 629-2011
dioxide Malodorous m3 absorption
Pollutant method
Emission 10mg/N Gravimetric HJ/T
Fumes
Standard GB m3 method 398-2007
14554-93,
Shandong
Provincial
Boiler Air
Boile
Pollutant
r
Once per Emission
disch
half a Standard
arge
year "Ultra-low
outlet
Emission
s
Standard No.
Ringelman 2 Ringelmann
n Modification 1 fume blackness HJ/T398-2007
blackness Form chart
Luzhijianbia
ofa [2016]
No. 46
Comprehens
ive Air
Pollutant
Discharge
Standard
GB16297-19
96
137
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Odor
Disch Triangle odor GB/T14675-1
concentrati 2000
arge bag method 993
on
outlet
Ammonia Ion selective
s for GB/T14669-1
(ammonia 4.9kg/h electrode
odor 993
gas) Malodorous method
treat
Hydrogen Pollutant Gas GB/T14678-1
ment 0.33kg/h
sulfide Discharge chromatography 993
Odor Standard
Triangle odor GB/T14675-1
concentrati GB14554-93 20
bag method 993
Batter on ,
y Ammonia Ion selective
1.5mg/N GB/T14669-1
limit (ammonia electrode
m3 993
odor gas) method
Hydrogen 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Online
Once per Dichromate
COD monitor 300mg/L HJ828-2017
6 hours process
ing
Water
Nessler’s
Quality
Ammonia reagent
Standard for 21mg/L HJ535-2009
nitrogen spectrophotomet
Sewage
Disch ry
Discharged
arge Glass electrode
pH into Urban 6-8.5 GB 6920-1986
outlet method
Sewers
s of Suspended Gravimetric
GB/T 300mg/L GB11901-89
sewa solids method
31962-2015,
ge Manual Once per Dilution and
Caoxia Meat
treat BOD5 monitor half a 250mg/L inoculation HJ505-2009
n Liuhe Processing
ment ing year method
Food Industry
statio Animal
Co. ,Lt Water Infrared
n and
d Pollutant 50mg/L spectrophotomet HJ 637-2012
vegetable
Emission ry
oils
Standard GB
Multi-tube
13457-92
Coliform fermentation
/ HJ637-2012
groups and filtration
membrane
Odor Malodorous
Triangle odor GB/T14675-1
Batter concentrati Pollutant 20
Manual Once per bag method 993
y on Discharge
monitor half a
limit Ammonia Standard Ion selective
ing year 1.5mg/N GB/T14669-1
odor (ammonia GB14554-93 electrode
m3 993
gas) , method
138
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Hydrogen 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Dichromate
COD 500mg/L HJ828-2017
process
Determination
of total nitrogen
by flow
injection
analysis (FIA)
Total Meat
70mg/L and HJ 668-2013
nitrogen Processing
N-(1-naphthyl)e
Industry
Online thylene diamine
Once per Water
monitor dihydrochloride
6 hours Pollutant
ing spectrophotomet
Emission
ry
Standard GB
Disch Nessler’s
13457-92
arge Ammonia reagent
Water 45mg/L HJ535-2009
outlet nitrogen spectrophotomet
Quality
s of ry
Standard for
sewa Ammonium
Jiaxian Total Sewage
ge molybdate
g New phosphoru Discharged 8mg/L HJ 671-2013
treat spectrophotomet
Hope s into Urban
ment ric method
Liuhe Sewers
statio Once Glass electrode
Food pH GB/T 6-8.5 GB 6920-1986
n per day method
Co., 31962-2015,
Suspended Gravimetric
Ltd Comprehens 200mg/L GB11901-89
solids method
ive Sewage
Dilution and
Discharge
BOD5 250mg/L inoculation HJ505-2009
Standard
method
GB8978-199
Animal
Once per 6 Infrared
and
quarter 50mg/L spectrophotomet HJ 637-2012
vegetable Manual
ry
oils monitor
ing Multi-tube
Coliform fermentation
/ HJ637-2012
groups and filtration
membrane
Disch Odor Malodorous
Triangle odor GB/T14675-1
arge concentrati Pollutant 2000
Once per bag method 993
outlet on Discharge
half a
s for Ammonia Standard GB Ion selective
year GB/T14669-1
odor (ammonia 14554-93, 4.9kg/h electrode
993
treat gas) Comprehens method
139
2021 Semiannual Report of New Hope Liuhe Co., Ltd
ment Hydrogen ive Air Gas GB/T14678-1
0.33kg/h
sulfide Pollutant chromatography 993
Odor Discharge
Triangle odor GB/T14675-1
concentrati Standard 20
bag method 993
Batter on GB16297-19
y Ammonia 96 Ion selective
1.5mg/N GB/T14669-1
limit (ammonia electrode
m3 993
odor gas) method
Hydrogen 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Dichromate
COD 60mg/L HJ828-2017
process
Determination
of total nitrogen
by flow
injection
Meat
analysis (FIA)
Total Processing
20mg/L and HJ 668-2013
nitrogen Industry
N-(1-naphthyl)e
Water
Online thylene diamine
Once per Pollutant
monitor dihydrochloride
6 hours Emission
ing spectrophotomet
Standard GB
Disch ry
13457-92
arge Nessler’s
Water
Yunche outlet Ammonia reagent
Quality 10mg/L HJ535-2009
ng s of nitrogen spectrophotomet
Standard for
Liuhe sewa ry
Sewage
Food ge Ammonium
Total Discharged
Co., treat molybdate
phosphoru into Urban 8mg/L HJ 671-2013
Ltd ment spectrophotomet
s Sewers
statio ric method
GB/T
n Once Glass electrode
pH 31962-2015, 6-8.5 GB 6920-1986
per day method
Comprehens
Suspended Gravimetric
ive Sewage 30mg/L GB11901-89
solids method
Discharge
Dilution and
Standard
BOD5 Manual 20mg/L inoculation HJ505-2009
GB8978-199
monitor method
Once per 6
Animal ing
quarter Infrared
and
5mg/L spectrophotomet HJ 637-2012
vegetable
ry
oils
Coliform Multi-tube
5000/L HJ637-2012
groups fermentation
140
2021 Semiannual Report of New Hope Liuhe Co., Ltd
and filtration
membrane
Boiler Air Non-dispersive
Nitrogen Pollutant 100mg/N infrared
HJ 692-2014
oxides Discharge m3 absorption
Standard method
Boile
DB37 Non-dispersive
r
Sulfide Once per 2374-2018, 50mg/N infrared
disch HJ 629-2011
dioxide half a m3 absorption
arge
year Comprehens method
outlet
ive Air 10mg/N Gravimetric HJ/T
s Fumes
Pollutant m3 method 398-2007
Ringelman Discharge Ringelmann
n Standard GB 1 fume blackness HJ/T398-2007
blackness 16927-1996 chart
Comprehens Dichromate
COD 300mg/L HJ828-2017
ive Sewage process
Discharge Nessler’s
Online
Ammonia Once per Standard reagent
monitor 30mg/L HJ535-2009
nitrogen 6 hours DB21/1627- spectrophotomet
ing
2008 ry
Meat Glass electrode
Disch pH 6-8.5 GB 6920-1986
Processing method
arge
Suspended Industry Gravimetric
outlet 300mg/L GB11901-89
solids Water method
s of
Pollutant Dilution and
sewa
BOD5 Emission 250mg/L inoculation HJ505-2009
ge
Anshan Standard GB method
treat
Liuhe 13457-92 Water quality
ment
Food Water test methods
statio Dissolved Once per 2000mg/
Co., Quality and standards CJ/T51
n total solids quarter L
Ltd Standard for for urban
Manual Sewage sewage
monitor Discharged Water quality
ing into Urban test methods
Coliform
Sewers 10000/L and standards CJ/T51
groups
GB/T for urban
31962-2015, sewage
Boile Boiler Air Non-dispersive
r Nitrogen Pollutant 400mg/N infrared
HJ 692-2014
disch oxides Once per Discharge m3 absorption
arge month Standard method
outlet Mercury GB13271-20 0.05mg/ Cold atomic
HJ543-2009
s and its 14, Nm3 absorption
141
2021 Semiannual Report of New Hope Liuhe Co., Ltd
compound Comprehens spectrometry
s ive Air
Pollutant Non-dispersive
Sulfide Discharge 400mg/N infrared
HJ 629-2011
dioxide Standard m3 absorption
GB16297-19 method
96 80mg/N Gravimetric HJ/T
Fumes
m3 method 398-2007
Ringelman Ringelmann
n 1 fume blackness HJ/T398-2007
blackness chart
Odor
Triangle odor GB/T14675-1
concentrati 20
bag method 993
on Malodorous
Ammonia Pollutant Ion selective
Batter 1.5mg/N GB/T14669-1
(ammonia Discharge electrode
y m3 993
gas) Standard method
limits
Hydrogen GB14554-93 0.06mg/ Gas GB/T14678-1
sulfide , Nm3 chromatography 993
Particulate 1mg/Nm Gravimetric GB/T
matter 3 method 15432-1995
Dichromate
COD 50mg/L HJ828-2017
process
Nessler’s
Ammonia reagent
8mg/L HJ535-2009
nitrogen spectrophotomet
Online Comprehens
Once per ry
monitor ive Sewage
6 hours Gas-Phase
Disch ing Discharge
Total Molecular HJ/T
arge Standard DB 15mg/L
nitrogen Absorption 199-2005
outlet 21/1627-200
Panjin Spectrometry
s of 8,
Liuhe Glass electrode
sewa pH Meat 6-8.5 GB 6920-1986
Farmin method
ge Processing
g Co., Suspended Gravimetric
treat Industry 20mg/L GB11901-89
Ltd solids method
ment Water
Dilution and
statio Pollutant
BOD5 10mg/L inoculation HJ505-2009
n Discharge
Manual method
Once per Standard GB
monitor Water quality
month 13457-92,
ing test methods
Dissolved 2000mg/
and standards CJ/T51
total solids L
for urban
sewage
Animal 20mg/L Infrared HJ 637-2012
142
2021 Semiannual Report of New Hope Liuhe Co., Ltd
and spectrophotomet
vegetable ry
oils
Water quality
test methods
Coliform
10000/L and standards CJ/T51
groups
for urban
sewage
Non-dispersive
Nitrogen 400mg/N infrared
HJ 692-2014
oxides m3 absorption
method
Mercury
Cold atomic
and its 0.05mg/
Boile Boiler Air absorption HJ543-2009
compound Nm3
r Pollutant spectrometry
s
disch Discharge
Non-dispersive
arge Standard
Sulfide 400mg/N infrared
outlet GB13271-20 HJ 629-2011
dioxide m3 absorption
s 14
method
80mg/N Gravimetric HJ/T
Fumes
m3 method 398-2007
Ringelman Ringelmann
n 1 fume blackness HJ/T398-2007
blackness chart
Odor
Triangle odor GB/T14675-1
concentrati 20
bag method 993
on Malodorous
Ammonia Pollutant Ion selective
Batter 1.5mg/N GB/T14669-1
(ammonia Discharge electrode
y m3 993
gas) Standard method
limits
Hydrogen GB14554-93 0.06mg/ Gas GB/T14678-1
sulfide , Nm3 chromatography 993
Particulate 1mg/Nm Gravimetric GB/T
matter 3 method 15432-1995
Disch Notice on Dichromate
COD 60mg/L HJ828-2017
arge Approval process
Dong’e
outlet and Nessler’s
Liuhe
s of Ammonia Manual Publication reagent
Lvjia Once per 10mg/L HJ535-2009
sewa nitrogen monitor of the spectrophotomet
Food quarter
ge ing Modification ry
Co.,
treat Forms for Glass electrode
Ltd pH 6-8.5 GB 6920-1986
ment four method
statio Suspended standards 30mg/L Gravimetric GB11901-89
143
2021 Semiannual Report of New Hope Liuhe Co., Ltd
n solids including the method
Comprehens Dilution and
BOD5 ive Emission 20mg/L inoculation HJ505-2009
Standard of method
Animal Water
Infrared
and Pollutants
5mg/L spectrophotomet HJ 637-2012
vegetable Along the
ry
oils South-to-No
rth Water
Transfer
Project of
Shandong
Province
(Luzhijianbi
aofa [2011] Multi-tube
Coliform 35), fermentation
10000/L HJ637-2012
groups Meat and filtration
Processing membrane
Industry
Water
Pollutant
Emission
Standard GB
13457-92
Odor Malodorous
Disch Triangle odor GB/T14675-1
concentrati Pollutant 2000
arge bag method 993
on Emission
outlet
Ammonia Standard GB Ion selective
s for GB/T14669-1
(ammonia 14554-93, 4.9kg/h electrode
odor 993
gas) Notice on method
treat
Hydrogen the Gas GB/T14678-1
ment 0.33kg/h
sulfide Implementat chromatography 993
Odor ion of
Once per Triangle odor GB/T14675-1
concentrati Special 20
half a bag method 993
on Emission
year
Ammonia Limits of Air Ion selective
1.5mg/N GB/T14669-1
Batter (ammonia Pollutants in electrode
m3 993
y gas) Beijing-Tian method
limit jin-Hebei
odor Air Pollution
Hydrogen Transmissio 0.06mg/ Gas GB/T14678-1
sulfide n Channel Nm3 chromatography 993
Cities
(Ministry of
144
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Environment
al Protection
Notice No.
9, 2018)
Dichromate
COD 500mg/L HJ828-2017
process
Meat Nessler’s
Online
Ammonia Once per Processing reagent
monitor 45mg/L HJ535-2009
nitrogen 6 hours Industry spectrophotomet
ing
Water ry
Disch
Pollutant Glass electrode
arge pH 6-8.5 GB 6920-1986
Discharge method
outlet
Suspended Standard Gravimetric
s of 300mg/L GB11901-89
solids GB13457-92 method
sewa
Water Dilution and
ge
BOD5 Quality 250mg/L inoculation HJ505-2009
treat
Standard for method
ment
Animal Sewage
statio Once per Infrared
and Discharged
n quarter 50mg/L spectrophotomet HJ 637-2012
vegetable into Urban
ry
oils Sewers
Liaoche
GB/T31962- Multi-tube
ng
Coliform 2015 fermentation
Liuhe / HJ637-2012
groups and filtration
Rongda
membrane
Farmin
Odor Malodorous
g Co., Disch Triangle odor GB/T14675-1
concentrati Pollutant 2000
Ltd arge Manual bag method 993
on Emission
outlet monitor
Ammonia Standard GB Ion selective
s for ing GB/T14669-1
(ammonia 14554-93, 4.9kg/h electrode
odor 993
gas) Notice on method
treat
Hydrogen the Gas GB/T14678-1
ment 0.33kg/h
sulfide Implementat chromatography 993
Odor Once per ion of
Triangle odor GB/T14675-1
concentrati half a Special 20
bag method 993
on year Emission
Ammonia Limits of Air Ion selective
Batter 1.5mg/N GB/T14669-1
(ammonia Pollutants in electrode
y m3 993
gas) Beijing-Tian method
limit
jin-Hebei
odor
Air Pollution
Hydrogen 0.06mg/ Gas GB/T14678-1
Transmissio
sulfide Nm3 chromatography 993
n Channel
Cities
145
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Down Dichromate
COD 60mg/L HJ828-2017
Industry process
Water Nessler’s
Online
Ammonia Once per Pollutant reagent
monitor 10mg/L HJ535-2009
nitrogen 6 hours Emission spectrophotomet
ing
Standard GB ry
21901-2008, Glass electrode
pH 6-8.5 GB 6920-1986
Notice on method
Suspended Approval Gravimetric
30mg/L GB11901-89
solids and Issue of method
Modification Dilution and
BOD5 Forms for 15mg/L inoculation HJ505-2009
four method
standards Methylene blue
Anionic
Disch including the 3mg/L spectrophotomet /
surfactant
arge Comprehens ric method
outlet Animal ive Emission
s of Standard for Infrared
and
Shenxia 5mg/L spectrophotomet HJ 637-2012
sewa vegetable Water
n New ry
ge oils Pollutants
Hope
treat Along the
Liuhe
ment South-to-No
Qingsiz
statio Once per rth Water
hai
n month Transfer
Food
Line of
Co., Manual
Shandong
Ltd monitor
Province "
ing
Luzhijianbia Multi-tube
Coliform ofa[2011] fermentation
10000/L HJ637-2012
groups No. 35, and filtration
Water membrane
Pollutant
Discharge
Standard for
Meat
Processing
Industry GB
13457-92
Disch Odor Malodorous
Triangle odor GB/T14675-1
arge concentrati Pollutant 2000
Once per bag method 993
outlet on Emission
half a
s for Ammonia Standard GB Ion selective
year GB/T14669-1
odor (ammonia 14554-93, 4.9kg/h electrode
993
treat gas) No. 2 method
146
2021 Semiannual Report of New Hope Liuhe Co., Ltd
ment Particulate Modification 10mg/N Gravimetric GB/T
matter Form for m3 method 15432-1995
Hydrogen Shandong Gas GB/T14678-1
0.33kg/h
sulfide Provincial chromatography 993
Odor Comprehens
Triangle odor GB/T14675-1
concentrati ive Emission 20
bag method 993
on Standard for
Ammonia Regional Air Ion selective
Batter 1.5mg/N GB/T14669-1
(ammonia Pollutants electrode
y m3 993
gas) DB37/2376- method
limit
2013,
odor
Luzhijianbia
Hydrogen 0.06mg/ Gas GB/T14678-1
ofa
sulfide Nm3 chromatography 993
(2016)No.
46
Down Dichromate
COD 50mg/L HJ828-2017
Industry process
Water Nessler’s
Ammonia Pollutant reagent
5mg/L HJ535-2009
nitrogen Emission spectrophotomet
Online Standard GB ry
Once per
monitor 21901-2008, N-Naphthylethy
6 hours
Total ing Notice on lenediamine
phosphoru Approval 0.3mg/L Dihydrochloride HJ 667-2013
s and Issue of spectrophotomet
Disch
Modification ric method
arge
Forms for Glass electrode
Yanggu outlet pH 6-8.5 GB 6920-1986
four method
Liuhe s of
Suspended standards Gravimetric
Luxin sewa 20mg/L GB11901-89
solids including the method
Food ge
Comprehens Dilution and
Co., treat
BOD5 ive Emission 10mg/L inoculation HJ505-2009
Ltd ment
Standard for method
statio
Water Methylene blue
n Anionic
Pollutants 3mg/L spectrophotomet /
surfactant Manual
Once per Along the ric method
monitor
Animal month South-to-No
ing Infrared
and rth Water
3mg/L spectrophotomet HJ 637-2012
vegetable Transfer
ry
oils Line of
Shandong Multi-tube
Coliform Province " fermentation
5000/L HJ637-2012
groups Luzhijianbia and filtration
ofa[2011] membrane
147
2021 Semiannual Report of New Hope Liuhe Co., Ltd
No. 35,
Water
Pollutant
Discharge
Standard for
Meat
Processing
Industry GB
13457-92
Odor Malodorous
Triangle odor GB/T14675-1
concentrati Pollutant 2000
Disch bag method 993
on Emission
arge
Ammonia Standard GB Ion selective
outlet GB/T14669-1
(ammonia 14554-93, 4.9kg/h electrode
s for 993
gas) No. 2 method
odor
Particulate Modification 10mg/N Gravimetric GB/T
treat
matter Form for m3 method 15432-1995
ment
Hydrogen Shandong Gas GB/T14678-1
0.33kg/h
sulfide Once per Provincial chromatography 993
Odor half a Comprehens
Triangle odor GB/T14675-1
concentrati year ive Emission 20
bag method 993
on Standard for
Ammonia Regional Air Ion selective
Batter 1.5mg/N GB/T14669-1
(ammonia Pollutants electrode
y m3 993
gas) DB37/2376- method
limit
2013,
odor
Luzhijianbia
Hydrogen 0.06mg/ Gas GB/T14678-1
ofa
sulfide Nm3 chromatography 993
(2016)No.
46
Meat Dichromate
COD 500mg/L HJ828-2017
Processing process
Disch Industry Nessler’s
arge Ammonia Water reagent
45mg/L HJ535-2009
Weifan outlet nitrogen Pollutant spectrophotomet
g s of Discharge ry
Online
Tianhui sewa Once per Standard Gas-Phase
monitor
Food ge Total 6 hours GB13457-92 Molecular HJ/T
ing 70mg/L
Co., treat nitrogen Water Absorption 199-2005
Ltd ment Quality Spectrometry
statio Standard for N-Naphthylethy
Total
n Sewage lenediamine
phosphoru 8mg/L HJ 667-2013
Discharged Dihydrochloride
s
into Urban spectrophotomet
148
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Sewers ric method
GB/T31962- Glass electrode
pH 6-8.5 GB 6920-1986
2015 method
Suspended Gravimetric
300mg/L GB11901-89
solids method
Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Methylene blue
Anionic
20mg/L spectrophotomet /
surfactant
Once per ric method
Animal quarter
Infrared
and
50mg/L spectrophotomet HJ 637-2012
vegetable
ry
oils
Multi-tube
Coliform fermentation
5000/L HJ637-2012
groups and filtration
membrane
Duck Shandong
feathe Particulate Manual Provincial 30mg/N Gravimetric GB/T
r matter monitor Comprehens m3 method 15432-1995
shop ing ive
Odor Discharge
Triangle odor GB/T14675-1
concentrati Standard for 20
bag method 993
on Regional Air
Ammonia Pollutants Ion selective
1.5mg/N GB/T14669-1
(ammonia DB37/2376- electrode
m3 993
gas) Once per 2013, method
half a Malodorous
Batter
year Pollutant
y
Discharge
limit
Standard
odor
GB14554-93
Hydrogen 0.06mg/ Gas GB/T14678-1
Boiler Air
sulfide Nm3 chromatography 993
Pollutant
Discharge
Standard
DB37
2374-2018
Weifan Disch Meat Dichromate
COD Online 500mg/L HJ828-2017
g arge Once per Processing process
monitor
Heshen outlet Ammonia hour Industry Nessler’s
ing 45mg/L HJ535-2009
gyuan s of nitrogen Water reagent
149
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Food sewa Pollutant spectrophotomet
Co., ge Discharge ry
Ltd treat Standard Gas-Phase
ment Total GB13457-92 Molecular HJ/T
70mg/L
statio nitrogen Water Absorption 199-2005
n Quality Spectrometry
Standard for N-Naphthylethy
Total Sewage lenediamine
phosphoru Discharged 8mg/L Dihydrochloride HJ 667-2013
s into Urban spectrophotomet
Sewers ric method
GB/T31962- Glass electrode
pH 6-8.5 GB 6920-1986
2015 method
Suspended Gravimetric
300mg/L GB11901-89
solids method
Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Animal
Once per Infrared
and
quarter 50mg/L spectrophotomet HJ 637-2012
vegetable
ry
oils
Multi-tube
Coliform fermentation
5000/L HJ637-2012
groups and filtration
membrane
Cante Shandong
en Manual Provincial Catering
disch monitor Comprehens 2.0mg/N Industry Oil GB18483-200
Fumes
arge ing ive m3 Fume Emission 1
outlet Discharge Standard
s Standard for
Odor Regional Air
Disch Triangle odor GB/T14675-1
concentrati Pollutants 2000
arge Once per bag method 993
on DB37/2376-
outlet half a
Ammonia 2013, Ion selective
s for year GB/T14669-1
(ammonia Malodorous 8.7kg/h electrode
odor 993
gas) Pollutant method
treat
Hydrogen Discharge Gas GB/T14678-1
ment 0.58kg/h
sulfide Standard chromatography 993
Batter Odor GB14554-93
Triangle odor GB/T14675-1
y concentrati Boiler Air 20
bag method 993
limit on Pollutant
odor Ammonia Discharge 1.5mg/N Ion selective GB/T14669-1
150
2021 Semiannual Report of New Hope Liuhe Co., Ltd
(ammonia Standard m3 electrode 993
gas) DB37 method
Hydrogen 2374-2018 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Dichromate
COD 70mg/L HJ828-2017
process
Online
Once per Nessler’s
monitor
Ammonia 6 hours reagent
ing 15mg/L HJ535-2009
nitrogen spectrophotomet
ry
Meat
Glass electrode
pH Processing 6-8.5 GB 6920-1986
method
Disch Industry
Ammonium
arge Total Water
molybdate
outlet phosphoru Pollutant 0.5mg/L HJ 670-2013
spectrophotomet
s of s Discharge
ric method
sewa Standard
Suspended Gravimetric
ge GB13457-92 60mg/L GB11901-89
solids method
treat Comprehens
Dilution and
ment Once per ive Sewage
BOD5 25mg/L inoculation HJ505-2009
statio month Discharge
method
Luoyan n Standard
Animal
g Liuhe GB8978-199 Infrared
and
Huiqua 6 15mg/L spectrophotomet HJ 637-2012
vegetable
n Food ry
oils
Co.,
Manual Multi-tube
Ltd
Coliform monitor fermentation
5000/L HJ637-2012
groups ing and filtration
membrane
Cante
Catering
en Catering
Industry Oil
exhau 2.0mg/N Industry Oil GB18483-200
Fumes Fume
st m Fume Emission 1
Emission
outlet Standard
Standard
s
Once per
Odor
half a Triangle odor GB/T14675-1
concentrati 20
year Malodorous bag method 993
Batter on
Pollutant
y Ammonia Ion selective
Discharge 1.5mg/N GB/T14669-1
limit (ammonia electrode
Standard m3 993
odor gas) method
GB14554-93
Hydrogen 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Hebi Disch COD Online Once per Meat 350mg/L Dichromate HJ828-2017
151
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Liuhe arge monitor 2 hours Processing process
Zhizhe outlet ing Industry Nessler’s
n Food s of Ammonia Water reagent
35mg/L HJ535-2009
Co., sewa nitrogen Pollutant spectrophotomet
Ltd ge Discharge ry
treat Once per Standard GB Glass electrode
pH 6-8.5 GB 6920-1986
ment month 13457-92, method
statio Comprehens Ammonium
Total
n Once per ive Sewage molybdate
phosphoru 4mg/L HJ 670-2013
day Discharge spectrophotomet
s
Standard ric method
Suspended GB8978-199 Gravimetric
60mg/L GB11901-89
solids 6， method
concentratio Dilution and
BOD5 n limits 25mg/L inoculation HJ505-2009
specified in method
Animal sewage
Once per discharge Infrared
and
month agreements 15mg/L spectrophotomet HJ 637-2012
vegetable
ry
oils
Manual Multi-tube
Coliform monitor fermentation
5000/L HJ637-2012
groups ing and filtration
membrane
Cante
Catering
en Catering
Industry Oil
exhau 2.0mg/N Industry Oil GB18483-200
Fumes Fume
st m Fume Emission 1
Emission
outlet Standard
Standard
s
Once per
Odor
half a Triangle odor GB/T14675-1
concentrati 20
year Malodorous bag method 993
Batter on
Pollutant
y Ammonia Ion selective
Discharge 1.5mg/N GB/T14669-1
limit (ammonia electrode
Standard m3 993
odor gas) method
GB14554-93
Hydrogen 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Laiwu Disch Water Dichromate
COD 500mg/L HJ828-2017
New arge Quality process
Online
Hope outlet Once per Standard for Nessler’s
monitor
Liuhe s of Ammonia 6 hours Sewage reagent
ing 45mg/L HJ535-2009
Food sewa nitrogen Discharged spectrophotomet
Co., ge into Urban ry
152
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Ltd treat Sewers N-Naphthylethy
ment GB/T31962- lenediamine
Total
statio 2015 70mg/L Dihydrochloride HJ 668-2013
nitrogen
n spectrophotomet
ric method
Glass electrode
pH 6.5-9.5 GB 6920-1986
method
Ammonium
Total
molybdate
phosphoru 8mg/L HJ 670-2013
spectrophotomet
s
ric method
Suspended Gravimetric
400mg/L GB11901-89
solids method
Dilution and
BOD5 350mg/L inoculation HJ505-2009
Once per
method
quarter
Animal
Infrared
and
100mg/L spectrophotomet HJ 637-2012
vegetable
ry
oils
Shandong Fixed potential
Nitrogen 200mg/N
Provincial electrolysis HJ 693-2014
oxides m3
Boiler Air method
Sulfide Pollutant 50mg/N Iodometric
HJ/T 56-2000
dioxide Emission m3 assay
Boile Standard
Manual
r "Ultra-low
monitor
exhau Emission
ing
st Standard No.
stacks 2 10mg/N Boiler fume test
Fumes GB 5468-91
Once per Modification m3 method
half a Form
year Luzhijianbia
ofa [2016]
No. 46
Odor
Disch Triangle odor GB/T14675-1
concentrati Malodorous 2000
arge bag method 993
on Pollutant
outlet
Ammonia Discharge Ion selective
s for GB/T14669-1
(ammonia Standard 4.9kg/h electrode
odor 993
gas) GB14554-93 method
treat
Hydrogen , Gas GB/T14678-1
ment 0.33kg/h
sulfide chromatography 993
Dezhou Disch COD Manual Once per Water 500mg/L Dichromate HJ828-2017
153
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Liuhe arge monitor half a Quality process
Zhikan outlet ing year Standard for Nessler’s
g Food s of Ammonia Sewage reagent
45mg/L HJ535-2009
Co., sewa nitrogen Discharged spectrophotomet
Ltd ge into Urban ry
treat Sewers N-Naphthylethy
ment GB/T lenediamine
Total
statio 31962-2015, 70mg/L Dihydrochloride HJ 668-2013
nitrogen
n Meat spectrophotomet
Processing ric method
Industry Glass electrode
pH 6.0-8.5 GB 6920-1986
Water method
Pollutant Ammonium
Total
Emission molybdate
phosphoru 8mg/L HJ 670-2013
Standard GB spectrophotomet
s
13457-92 ric method
Suspended Gravimetric
300mg/L GB11901-89
solids method
Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Multi-tube
Coliform fermentation
/ HJ637-2012
groups and filtration
membrane
Animal
Infrared
and
50mg/L spectrophotomet HJ 637-2012
vegetable
ry
oils
Ringelman Boiler Air Ringelmann
n Pollutant Level 1 fume blackness HJ/T398-2007
blackness Discharge chart
Boile Standard Fixed potential
Nitrogen 150mg/N
r DB37 electrolysis HJ 693-2014
oxides Once per m3
exhau 2374-2018, method
year
st Sulfide Boiler Air 50mg/N Iodometric
HJ/T 56-2000
stacks dioxide Pollutant m3 assay
Discharge
10mg/N Boiler fume test
Fumes Standard GB GB 5468-91
m3 method
13271-2014,
Disch Odor Malodorous
Once per Triangle odor GB/T14675-1
arge concentrati Pollutant 2000
half a bag method 993
outlet on Discharge
year
s for Ammonia Standard 4.9kg/h Ion selective GB/T14669-1
154
2021 Semiannual Report of New Hope Liuhe Co., Ltd
odor (ammonia GB14554-93 electrode 993
treat gas) , method
ment Hydrogen Gas GB/T14678-1
0.33kg/h
sulfide chromatography 993
Notice on Dichromate
COD 50mg/L HJ828-2017
Approval process
and Issue of Nessler’s
Ammonia the reagent
5mg/L HJ535-2009
nitrogen Modification spectrophotomet
Online Forms for ry
Once per
monitor Four N-Naphthylethy
6 hours
Total ing Standards lenediamine
phosphoru Including 0.3mg/L Dihydrochloride HJ 667-2013
s the spectrophotomet
Comprehens ric method
ive Glass electrode
pH 6-8.5 GB 6920-1986
Discharge method
Suspended Standard for Gravimetric
20mg/L GB11901-89
solids Water method
Disch Pollutants Gas-Phase
arge Total Along the Molecular HJ/T
20mg/L
Feixian outlet nitrogen South-to-No Absorption 199-2005
Liuhe s of rth Water Spectrometry
Huahai sewa Transfer Dilution and
Food ge BOD5 Project of 10mg/L inoculation HJ505-2009
Co., treat Shandong method
Ltd ment Animal Province
statio Luzhijianbia Infrared
and
n ofa [2011] 3mg/L spectrophotomet HJ 637-2012
vegetable
No. 35, ry
oils Manual
Once per
monitor Water
month
ing Pollutant
Emission
Standard for
Meat
Processing Multi-tube
Coliform Industry GB fermentation
10000/L HJ637-2012
groups 13457-92, and filtration
Comprehens membrane
ive
Discharge
Standard for
Water
Pollutants
155
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Along the
South-to-No
rth Water
Transfer
Project in
Shandong
Province
DB37/
599-2006,
Modification
Forms DB37
/ 599-2006
for Four
Standards
including the
Comprehens
ive
Discharge
Standard for
Water
Pollutants
along the
South-to-No
rth Water
transfer
Project in
Shandong
Province,
increasing
the limit of
total
nitrogen.
Odor
Triangle odor GB/T14675-1
concentrati 20
Malodorous bag method 993
Batter on
Once per Pollutant
y Ammonia Ion selective
half a Discharge 1.5mg/N GB/T14669-1
limit (ammonia electrode
year Standard m3 993
odor gas) method
GB14554-93
Hydrogen 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Fuxin Disch Meat Dichromate
COD Online 300mg/L HJ828-2017
Liuhe arge Once per Processing process
monitor
Farmin outlet Ammonia 2 hours Industry Nessler’s
ing 30mg/L HJ535-2009
g Co., s of nitrogen Water reagent
156
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Ltd sewa Polllutant spectrophotomet
Food ge Discharge ry
Branch treat Standard GB Ammonium
Total
ment 13457-92, molybdate
phosphoru 5mg/L
statio Comprehens spectrophotomet
s
n ive Sewage ric method
Total Discharge Spectrophotome
50mg/L
nitrogen Standard DB tric method
21/1627-200 Glass electrode
pH 6-8.5 GB 6920-1986
8 method
Suspended Gravimetric
300mg/L GB11901-89
solids method
Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Once per
Animal
quarter Infrared
and
50mg/L spectrophotomet HJ 637-2012
vegetable
ry
oils
Coliform Fermentation
/ GB5750
groups method
Non-dispersive
Nitrogen Once per 200mg/N infrared
HJ 692-2014
oxides month m3 absorption
method
Boile Boiler Air
Non-dispersive
r Manual Pollutant
Sulfide 50mg/N infrared
disch monitor Discharge HJ 629-2011
dioxide m3 absorption
arge ing Standard
method
outlet Once per GB13271-20
20mg/N Gravimetric HJ/T
s Fumes year 14
m3 method 398-2007
Ringelman Ringelmann
n Level 1 fume blackness HJ/T398-2007
blackness chart
Odor
Disch Triangle odor GB/T14675-1
concentrati 2000
arge bag method 993
on Malodorous
outlet
Ammonia Pollutant Ion selective
s for Once per GB/T14669-1
(ammonia Discharge 4.9kg/h electrode
odor half a 993
gas) Standard method
treat year
Hydrogen GB14554-93 Gas GB/T14678-1
ment 0.33kg/h
sulfide , chromatography 993
Batter Odor Triangle odor GB/T14675-1
20
y concentrati bag method 993
157
2021 Semiannual Report of New Hope Liuhe Co., Ltd
limit on
odor Ammonia Ion selective
1.5mg/N GB/T14669-1
(ammonia electrode
m3 993
gas) method
Hydrogen 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Down Dichromate
COD 500mg/L HJ828-2017
Industry process
Water Nessler’s
Ammonia Pollutant reagent
25mg/L HJ 535-2009
nitrogen Emission spectrophotomet
Standard GB ry
21901-2008, N-Naphthylethy
Total Notice on lenediamine
GB/T
phosphoru Online Approval 8mg/L Dihydrochloride
Once per 16488-1996
s monitor and Issue of spectrophotomet
6 hours
ing Modification ric method
Forms for Upper
four limit 8.5
standards dimensio
Disch including the nless, Glass electrode
pH GB 6920-1986
Taiqian arge Comprehens lower method
New outlet ive Emission limit: 6
Hope s of Standard for dimensio
Liuhe sewa Water nless
Luxin ge Suspended Pollutants Gravimetric
300mg/L GB11901-89
Food treat solids Along the method
Co., ment South-to-No Dilution and
Ltd statio BOD5 rth Water 250mg/L inoculation HJ505-2009
n Transfer method
Line of Alkaline
Shandong potassium
Total Province " persulfate
45mg/L HJ 636-2012
nitrogen Manual Luzhijianbia digestion UV
Once per
monitor ofa[2011] spectrophotomet
month
ing No. 35, ric method
Animal Water
Infrared
and Pollutant
50mg/L spectrophotomet HJ 637-2012
vegetable Discharge
ry
oils Standard for
Meat Multi-tube
Coliform Processing 10000mg fermentation
HJ637-2012
groups Industry GB /L and filtration
13457-92 membrane
158
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Ringelman Ringelmann
1mg/Nm
n fume blackness HJ/T398-2007
3
blackness chart
N-Naphthylethy
lenediamine
Nitrogen Malodorous 30mg/N
Dihydrochloride HJ/T 43-1999
Boile oxides Pollutant m3
spectrophotomet
r Emission
ric method
exhau Standard GB
Determination
st 14554-93,
of particulate
treat No. 2
matter in
ment Modification
stationary
disch Form for
Particulate 5mg/Nm pollution source GB/T
arge Shandong
matter 3 emissions and 16157-1996
outlet Once per Provincial
sampling
half a Comprehens
method for
year ive Emission
gaseous
Standard for
pollutants
Regional Air
Sulfide 10mg/N Iodometric
Pollutants HJ/T 56-2000
dioxide m3 assay
DB37/2376-
Disch Odor
2013, 2000mg/ Triangle odor GB/T14675-1
arge concentrati
Luzhijianbia Nm3 bag method 993
outlet on
ofa
s of Ammonia Ion selective
(2016)No. 1.5mg/N GB/T14669-1
sewa (ammonia electrode
46 m3 993
ge gas) method
treat
ment Hydrogen 0.06mg/ Gas GB/T14678-1
statio sulfide Nm3 chromatography 993
n
Pollutant Alkaline
Emission potassium
Disch Total Standard for persulfate
70mg/L HJ 636-2012
arge nitrogen Urban digestion UV
Laoting outlet Sewage spectrophotomet
Liuhe s of Treatment ric method
Online
Xinmei sewa Once per Plants (GB 6-8.5
monitor Glass electrode GB/T
zi Food ge pH 6 hours 18918-2002) (dimensi
ing method 6920-1986
Co., treat ; Meat onless)
Ltd ment Processing Nessler’s
statio Ammonia Industry reagent
45mg/L HJ 535-2009
n nitrogen Water spectrophotomet
Pollutant ry
COD Discharge 500mg/L Dichromate HJ828-2017
159
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Standard process
(GB Dilution and
BOD5 13457-92) 250mg/L inoculation HJ 505-2009
method
Animal
Infrared
and
50mg/L spectrophotomet HJ 637-2018
vegetable Once per
ry
oils month
Suspended Gravimetric GB/T
300mg/L
solids method 11901-1989
Fecal Multi-tube
coliform 10000/L fermentation HJ 347.2-2018
groups method
Nessler’s
Ammonia
reagent
(ammonia 4.9kg/h HJ 533-2009
Exha spectrophotomet
gas)
ust ry
disch “Air and
arge Waste Gas
outlet Monitoring
of Methylene blue and Analysis
Hydrogen
sewa Manual 0.33kg/h spectrophotomet Methods”
sulfide
ge monitor ric method Version 4
treat ing Enlarged
ment Edition
statio 5.4.10.3
Malodorous
n Odor 2000
Pollutant Triangle odor GB/T
concentrati Once per (dimensi
Discharge bag method 14675-1993
on half a onless)
Standard
year Nessler’s
Ammonia GB14554-93
reagent
(ammonia , 4.9kg/h HJ 533-2009
spectrophotomet
gas)
Disch ry
arge “Air and
outlet Waste Gas
of Monitoring
slaug Methylene blue and Analysis
Hydrogen
hterin 0.33kg/h spectrophotomet Methods”
sulfide
g ric method Version 4
works Enlarged
hop Edition
5.4.10.3
Odor 2000 Triangle odor GB/T
concentrati (dimensi bag method 14675-1993
160
2021 Semiannual Report of New Hope Liuhe Co., Ltd
on onless)
Dichromate
COD 50mg/L HJ828-2017
process
Disch Nessler’s
Online
arge Ammonia Once per Meat reagent
monitor 5mg/L HJ 668-2013
outlet nitrogen 1 hours Processing spectrophotomet
ing
s of Industry ry
sewa Water Glass electrode
pH 6--9 HJ535-2009
ge Pollutant method
treat Suspended Discharge Gravimetric
Qixia 60mg/L GB11901-89
ment solids Standard GB method
Refrige
statio Animal 13457-92
ration Infrared
n and
Plant of 15mg/L spectrophotomet HJ 637-2012
vegetable
Shando ry
oils
ng New
Malodorous
Hope
Batter Pollutant
Liuhe Methylene blue
y Malodorou Discharge 0.1mg/N GB/T14675-1
Group Manual spectrophotomet
limit s odor Once per Standard m3 993
Co., monitor ric method
odor quarter GB14554-93
Ltd ing
,
Fixed potential
Nitrogen Boiler Air 200mg/N
electrolysis HJ693-2014
Boile oxides Pollutant m3
method
r Discharge
Fixed potential
exhau Sulfide Standard
50mg/m electrolysis HJ/T57-2000
st dioxide （GB
method
stacks 13271-2014
Particulate 20mg/N Gravimetric GB/T15432-1
）
matter m3 method 995
COD Dichromate
COD HJ828-2017
30mg/l process
Ammoni Nessler’s
Disch
Ammonia a reagent
arge Water HJ535-2009
nitrogen nitrogen spectrophotomet
Laiyan outlet Pollutants in
1.5mg/l ry
g s of the
Online Glass electrode
Tianye sewa pH Once per Peninsula pH6-9 GB 6920-1986
monitor method
Food ge 24 hours Basin of
ing Infrared
Co., treat Animal Shandong
≤5mg/L spectrophotomet HJ 637-2012
Ltd ment oils Province
ry
statio DB37/676-2
Total Ammonium
n Total 007
phosphor molybdate
phosphoru HJ 671-2013
us spectrophotomet
s
0.5mg/l ric method
161
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Determination
of total nitrogen
by flow
injection
Total analysis (FIA)
Total
nitrogen and HJ 668-2013
nitrogen
15mg/l N-(1-naphthyl)e
thylene diamine
dihydrochloride
spectrophotomet
ry
Shandong Laser
Nitrogen 200mg/m GB/T16157-1
Provincial backscattering
oxides 996
Boiler Air method
Sulfide Pollutant
50mg/m
dioxide Emission
Standard No.
Boile
2
r
Manual Modification
disch Once per Ultraviolet
monitor Form
arge quarter differential
ing (Luzhijianbi
outlet optical HJ/T397-2007
Particulate aofa [2016]
s 20mg/m absorption
matter No. 46,
spectroscopy
Malodorous
Pollutant
Emission
Standard GB
14554-93
Dichromate
COD 450mg/L HJ828-2017
process
Nessler’s
Disch Ammonia Determinatio reagent
35mg/L HJ535-2009
arge nitrogen n of spectrophotomet
Tai’an outlet suspended ry
Taishan s of solids for N-Naphthylethy
Online
Liuhe sewa Once per water lenediamine
Total monitor
Food ge 2 hours quality-gravi 70mg/L Dihydrochloride HJ 668-2013
nitrogen ing
Co., treat metric spectrophotomet
Ltd ment method ric method
statio GB11901-19 Glass electrode
pH 6-8.5 GB 6920-1986
n 89 method
Total Ammonium
phosphoru 8mg/L molybdate HJ 670-2013
s spectrophotomet
162
2021 Semiannual Report of New Hope Liuhe Co., Ltd
ric method
Suspended Gravimetric
256mg/L GB11901-89
solids method
Dilution and
BOD5 150mg/L inoculation HJ505-2009
Once per
method
quarter
Animal
Infrared
and
50mg/L spectrophotomet HJ 637-2012
vegetable
ry
oils
Fixed potential
Nitrogen Once/mo 100mg/N
electrolysis HJ 693-2014
oxides nth Emission m3
Boile method
Manual Standard for
r Particulate 10mg/N Gravimetric GB/T15432-1
monitor Boiler Air
exhau matter m3 method 995
ing Pollutants
st Sulfide Once/yea 50mg/N Iodometric
DB37 HJ/T 56-2000
stacks dioxide r m3 assay
2374-2018
Ringelman 10mg/N Boiler fume test
GB 5468-91
blackness m3 method
Odor
Disch Triangle odor GB/T14675-1
concentrati 2000
arge Malodorous bag method 993
on
outlet Once per Pollutant
Ammonia Ion selective
s for half a Discharge GB/T14669-1
(ammonia 4.9kg/h electrode
odor year Standard GB 993
gas) method
treat 14554-93,
Hydrogen Gas GB/T14678-1
ment 0.33kg/h
sulfide chromatography 993
Water Dichromate
COD 500mg/L HJ828-2017
Quality process
Standard for Determination
Sewage of total nitrogen
Disch
Shando Discharged by flow
arge
ng New into Urban injection
outlet
Hope Sewers analysis (FIA)
s of Total
Liuhe Online GB/T 70mg/L and HJ 668-2013
sewa nitrogen Once per
Group monitor 31962-2015, N-(1-naphthyl)e
ge 2 hours
Co., ing Meat thylene diamine
treat
Ltd Processing dihydrochloride
ment
Linyi Industry spectrophotomet
statio
Branch Water ry
n
Pollutant Nessler’s
Ammonia Emission reagent
45mg/L HJ535-2009
nitrogen Standard GB spectrophotomet
13457-92 ry
163
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Ammonium
Total
molybdate
phosphoru 8mg/L HJ 671-2013
spectrophotomet
s
ric method
Glass electrode
pH 6-8.5 GB 6920-1986
method
Suspended Gravimetric
200mg/L GB11901-89
solids method
Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Animal Manual
Once per Infrared
and monitor
quarter 50mg/L spectrophotomet HJ 637-2012
vegetable ing
ry
oils
Multi-tube
Coliform fermentation
10000 HJ637-2012
groups and filtration
membrane
Non-dispersive
Nitrogen Once per 200mg/N infrared
HJ 692-2014
oxides month m3 absorption
method
Boile Boiler Air
Non-dispersive
r Pollutant
Sulfide Manual 50mg/N infrared
disch Discharge HJ 629-2011
dioxide monitor m3 absorption
arge Standard
ing method
outlet Once per DB37
10mg/N Gravimetric HJ/T
s Fumes year 2374-2018
m3 method 398-2007
Ringelman Ringelmann
n 1 fume blackness HJ/T398-2007
blackness chart
Odor
Triangle odor GB/T14675-1
concentrati Malodorous 20
bag method 993
Batter on Pollutant
Manual Once per
y Ammonia Discharge Ion selective
monitor half a 1.5mg/N GB/T14669-1
limit (ammonia Standard electrode
ing year m3 993
odor gas) GB14554-93 method
Hydrogen , 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
Qingda Disch Continuo Water Dichromate
COD Online 500mg/L HJ828-2017
o Liuhe arge us Quality process
monitor
Wanfu outlet Ammonia monitori Standard for Nessler’s
ing 45mg/L HJ 535-2009
Food s of nitrogen ng Sewage reagent
164
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Co., sewa Discharged spectrophotomet
Ltd ge into Urban ry
treat Sewers Glass electrode
pH 6.5-9.5 GB 6920-1986
ment GB/T31962- method
statio 2015 Velocity method
n Flow \ (ultrasonic flow
meter)
Alkaline
potassium
Total persulfate
70mg/L HJ 636-2012
nitrogen digestion UV
spectrophotomet
ric method
Ammonium
Total
molybdate GB/T11893-1
phosphoru 8mg/L
spectrophotomet 989
s
ric method
Manual Once per
Suspended Gravimetric GB/T11901-1
monitor half a 400mg/L
solids method 989
ing year
Dilution and
BOD5 350mg/L inoculation HJ505-2009
method
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Infrared
and
100mg/L spectrophotomet HJ 637-2018
vegetable
ry
oils
Enzyme
Coliform
\ substrate HJ 1001-2018
groups
technique
Fixed potential
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Shandong electrolysis HJ 693-2014
oxides month m3
Provincial method
Comprehens Non-dispersive
Sulfide ive Emission 50mg/N infrared
Boile HJ 629-2011
dioxide Standard for m3 absorption
r
Manual Regional Air method
disch
monitor Pollutants 10mg/N Gravimetric HJ/T
arge Fumes
ing Once per DB37/2376- m3 method 398-2007
outlet
year 2019,
s
Comprehens Catering
Fume ive Air 2.0mg/N Industry Oil GB18483-200
blackness Pollutant m3 Fume Emission 1
Discharge Standard
Standard
165
2021 Semiannual Report of New Hope Liuhe Co., Ltd
GB16279-19
96
Fryin
g Once per Infrared
1.5mg/N DB37/597-200
fume Fumes half a Shandong spectrophotomet
m3 6
chim year Provincial ry
ney Fume
Smok Manual Emission
Once per Infrared
ing monitor Standard for 1.5mg/N DB37/597-200
Fumes half a spectrophotomet
chim ing Catering m3 6
year ry
ney Industry
Cante DB37/597-2
Infrared
en Once per 006 1.5mg/N DB37/597-200
Fumes spectrophotomet
chim year m3 6
ry
ney
Nessler’s
Ammonia
reagent
(ammonia 4.9kg/h HJ 533-2009
Exha spectrophotomet
gas)
ust ry
disch “Air and
arge Waste Gas
Malodorous
outlet Monitoring
Manual Pollutant
of Once per Methylene blue and Analysis
Hydrogen monitor Discharge
sewa quarter 0.33kg/h spectrophotomet Methods”
sulfide ing Standard
ge ric method Version 4
GB14554-93
treat Enlarged
ment Edition
statio 5.4.10.3
n Odor 2000
Triangle odor GB/T
concentrati (dimensi
bag method 14675-1993
on onless)
Factory
Facto Boundary
Daytime
ry Noise Multifunctional
Once per 60, GB12348-200
boun Noise Emission sound level
quarter nighttime 8
dary Standard for meter
50
noise Industrial
Enterprises
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Batter concentrati 20
Manual Once per Pollutant bag method 993
y on
monitor half a Discharge
limit Ammonia Ion selective
ing year Standard 1.5mg/N GB/T14669-1
odor (ammonia electrode
GB14554-93 m3 993
gas) method
166
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Hydrogen 0.06mg/ Gas GB/T14678-1
sulfide Nm3 chromatography 993
COD Dichromate
COD HJ 828-2018
40mg/l process
Ammoni Nessler’s
Ammonia a reagent
HJ535-2010
nitrogen nitrogen spectrophotomet
2mg/l ry
Surface
Glass electrode
pH Water pH6-10 GB 6920-1987
method
Environment
Disch Infrared
Animal al Quality
arge ≤6mg/L spectrophotomet HJ 637-2013
oils Standard
outlet ry
GB3838-200
s of Total Ammonium
Total Online 2，
sewa Once per phosphor molybdate
phosphoru monitor Meat HJ 671-2014
ge 24 hours us spectrophotomet
s ing Processing
treat 0.4mg/l ric method
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ment Determination
Fenxi Water
statio of total nitrogen
New Pollutant
n by flow
Hope Discharge
injection
Liuhe Standard
Total analysis (FIA)
Food Total GB13457-92
nitrogen and HJ 668-2014
Co., nitrogen
2mg/l N-(1-naphthyl)e
Ltd
thylene diamine
dihydrochloride
spectrophotomet
ry
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Nitrogen 200mg/m GB/T16157-1
ive Air backscattering
oxides 997
Pollutant method
Boile Sulfide Discharge
50mg/m
r dioxide Standard
Manual
disch Twice/qu GB16279-19 Ultraviolet
monitor
arge arter 96 differential
ing
outlet Malodorous optical HJ/T397-2008
Particulate
s Pollutant 20mg/m absorption
matter
Emission spectroscopy
Standard GB
14554-93,
Beijing Outle Comprehens Dichromate
COD Online Four 500mg/L HJ828-2017
Kinghe t of ive process
monitor times/da
y Food sewa Total Discharge Determination
ing y 70mg/L HJ 668-2013
Co., ge nitrogen Standard for of total nitrogen
167
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Ltd treat Water by flow
ment Pollutants injection
statio （DB11/307 analysis (FIA)
n -2013） and
N-(1-naphthyl)e
thylene diamine
dihydrochloride
spectrophotomet
ry
Nessler’s
Ammonia reagent
45mg/L HJ535-2009
nitrogen spectrophotomet
ry
Ammonium
Total
molybdate
phosphoru 8.0mg/L HJ 671-2013
spectrophotomet
s
ric method
Glass electrode
pH 6.5-9 GB 6920-1986
method
Suspended Gravimetric
400mg/L GB11901-89
solids method
Dilution and
BOD5 300mg/L inoculation HJ505-2009
method
Animal Manual
Once per Infrared
and monitor
quarter 50mg/L spectrophotomet HJ 637-2012
vegetable ing
ry
oils
Multi-tube
Coliform fermentation
10000/L HJ637-2012
groups and filtration
membrane
Disch Comprehens
arge ive Air
Non-metha
outlet Pollutant
ne 50mg/N Gas
s of Discharge HJ/T 38-1999
hydrocarbo m3 chromatography
rende Standard
ns Manual Once per
ring DB11/501-2
monitor half a
shop 007
ing year
Catering Catering
Cante Industry Oil 1mg/Nm Industry Oil GB18483-200
Fumes
en Fume 3 Fume Emission 1
fumes Emission Standard (Trial)
Particulate Standard 5mg/Nm Manual DB11/T1485
168
2021 Semiannual Report of New Hope Liuhe Co., Ltd
matter (Trial) 3 weighing
GB18483-20 method
Non-metha 01
ne 10mg/N Gas
HJ/T 38-1999
hydrocarbo m3 chromatography
ns
Dichromate
COD 500mg/L HJ828-2017
process
Determination
of total nitrogen
by flow
injection
analysis (FIA)
Total
70mg/L and HJ 668-2013
nitrogen
N-(1-naphthyl)e
Online Four thylene diamine
monitor times/da dihydrochloride
ing y spectrophotomet
ry
Nessler’s
Ammonia reagent
45mg/L HJ535-2009
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Hebei t of ive ry
Kinghe sewa Discharge Ammonium
Total
y Meat ge Standard for molybdate
phosphoru 8.0mg/L HJ 671-2013
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s
y Co., ment Pollutants ric method
Ltd statio （DB11/307 Glass electrode
pH 6.5-9 GB 6920-1986
n -2013） method
Suspended Gravimetric
400mg/L GB11901-89
solids method
Spectrophotome
Phosphates 1.0mg/L HJ 670-2013
tric method
Dilution and
BOD5 Manual 300mg/L inoculation HJ505-2009
Once per
monitor method
quarter
Animal ing
Infrared
and
50mg/L spectrophotomet HJ 637-2012
vegetable
ry
oils
Multi-tube
Coliform fermentation
10000/L HJ637-2012
groups and filtration
membrane
169
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Exha Odor
Triangle odor GB/T14675-1
ust concentrati 2000
bag method 993
funne on
ls of Ammonia Ion selective
GB/T14669-1
air (ammonia 4.9kg/h electrode
993
floata gas) method
tion
tanks,
exhau
st
funne
ls of
de-sli
ming
shops
,
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st Pollutant
funne Discharge
ls of Standard
grille GB14554-93
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s, 0.33kg/h
sulfide chromatography 993
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ls of
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ng
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g
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y Food
treat Total ing y DB21/1627- of total nitrogen
Co., 50mg/L HJ 668-2013
ment nitrogen 2008 by flow
Ltd
statio Meat injection
170
2021 Semiannual Report of New Hope Liuhe Co., Ltd
n Processing analysis (FIA)
Industry and
Water N-(1-naphthyl)e
Pollutant thylene diamine
Discharge dihydrochloride
Standard spectrophotomet
GB13457-92 ry
Nessler’s
Ammonia reagent
30mg/L HJ535-2009
nitrogen spectrophotomet
ry
Ammonium
Total
molybdate
phosphoru 5mg/L HJ 671-2013
spectrophotomet
s
ric method
Glass electrode
pH 6.0-8.5 GB 6920-1986
method
Suspended Gravimetric
300mg/L GB11901-89
solids method
Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Once per
Animal Manual
quarter Infrared
and monitor
60mg/L spectrophotomet HJ 637-2012
vegetable ing
ry
oils
Multi-tube
Coliform fermentation
10000 HJ637-2012
groups and filtration
membrane
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Triangle odor GB/T14675-1
concentrati Pollutant dimensio
bag method 993
on Discharge nless
Ammonia Standard GB Ion selective
1.5mg/N GB/T14669-1
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y gas) Comprehens method
monitor half a
limit ive Air
ing year
odor Pollutant
Hydrogen Discharge 0.06mg/ Gas GB/T14678-1
sulfide Standard Nm3 chromatography 993
GB16297-19
96
Chengd Efflu All Manual Water Dichromate
COD 500mg/L HJ828-2017
u Hope ent indicat monitori Quality process
171
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Food disch ors are ng: once Standard for Nessler’s
Co., arge Ammonia subject per half a Sewage reagent
45mg/L HJ 535-2009
Ltd outlet nitrogen to year Discharged spectrophotomet
manual online into Urban ry
monitor monitori Sewers Glass electrode
pH 6.0-8.5 GB 6920-86
ing, of ng: once GB/T method
which per two 31962-2015, Ammonium
Total
COD, hours Meat molybdate
phosphoru 8mg/L GB 11893-89
ammon Processing spectrophotomet
s
ia Industry ric method
Suspended nitroge Water Gravimetric
400mg/L GB 11901-89
solids n, total Pollutant method
phosph Emission Dilution and
BOD5 orus, Standard GB 300mg/L inoculation HJ 505-2009
total 13457-92 method
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Infrared
and n and
60mg/L photometric HJ637-2018
vegetable pH are
method
oils covered
by Water and
online Wastewater
monitor Monitoring
ing Multi-tube
Coliform and Analysis
-- fermentation
groups Methods
method
(Version 4)
(enlarged
edition)
Alkaline
potassium
Total persulfate
70mg/L HJ636-2012
nitrogen digestion UV
spectrophotomet
ric method
Fixed potential
Nitrogen Once per 150mg/N
electrolysis HJ 693-2014
oxides month m3
method
Boile Boiler Air Fixed potential
Sulfide 50mg/N
r Manual Pollutant electrolysis HJ 57-2017
dioxide m3
exhau monitor Discharge method
st Particulate ing Once per Standard GB 20mg/N Gravimetric
HJ 836-2017
vent matter year 13271-2014, m3 method
Ringelman Ringelmann
n Level 1 fume blackness HJ/T398-2007
blackness chart
172
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Nessler’s
Ammonia
1.5mg/N reagent
(ammonia HJ533-2009
m3 spectrophotomet
gas)
ry
Malodorous Air and Waste
Fugiti
Manual Pollutant Gas
ve Twice Methylene blue
Hydrogen monitor Discharge 0.06mg/ Monitoring
emiss per year spectrophotomet
sulfide ing Standard GB Nm3 and Analysis
ions ric method
14554-93, Methods
(Version 4)
Odor
20mg/N Triangle odor GB/T14675-1
concentrati
m3 bag method 993
on
Zhejian
g
Xindon
gwan
Agricul Transformati
tural on phase
Develo
pment
Co.,
Ltd
Hangzh
ou
Guangl
Transformati
v
on phase
Breedin
g Co.,
Ltd
Ruian
New In the
Hope process of
Liuhe rectification,
Farmin not
g Co., operational
Ltd
Zhejian
g Yihai In the
Agricul process of
tural rectification,
Develo not
pment operational
Co.,
173
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Ltd
Ningbo
New In the
Hope process of
Liuhe rectification,
Farmin not
g Co., operational
Ltd
Administrative punishments imposed due to environmental issues within the reporting period
Effects on
The company’s
Name of company or Punishment business
Cause of punishment Violations rectification
subsidiary results operations of
measures
listed companies
Violation of Article 18 of Discharge of boiler
Kunming New Hope Rectification
the Air Pollution Control waste gas particles and Fined 450,000
Agricultural None completed as
Law of the People’s nitrogen oxides in Yuan
Technology Co., Ltd required
Republic of China excess of standards
Failure to take
enclosure, sprinkling
and other dust
Violation of Section 2 of prevention and control
Article 70 of the Air measures in the process Rectification
Huaian Liuhe Feed Fined 19,900
Pollution Control Law of of loading and None completed as
Co., Ltd Yuan
the People’s Republic of unloading at the required
China ingredient depot,
resulting in serious dust
accumulation on
ground.
Failure to formulate
contingency plans for
Violation of Article 13 of environmental
Dongying Xinhao the Administrative emergencies according Rectification
Fined 22,500
Modern Farming Measures for Emergency to provisions and to file None completed as
Yuan
Co., Ltd Response to Environmental the same with required
Contingencies environmental
authorities at the county
level or above.
Failure to complete
Violation of Article 13 of
Zhongyang New construction of and Rectification
the Regulations on Fined 49,000
Hope Liuhe Farming commission anaerobic None completed as
Pollution Control of Yuan.
Technology Co., Ltd fermentation tanks in required
Large-scale Livestock and
violation of the Three
174
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Poultry Breeding Simultaneous Steps
system for
environmental
protection.
Effluent concentrations
Violation of Article 10 of discharged by the
Rectification
Panjin Liuhe the Water Pollution Control master effluent Fined 100,000
None completed as
Farming Co., Ltd Law of the People’s discharge outlet in Yuan.
required
Republic of China excess of discharge
standard
Absence of UPS backup
Violation of Section 1 of power supply inside the
Article 23 of the Water online monitoring Rectification
Guantao Liuhe Food Fined 50,000
Pollution Control Law of equipment station room None completed as
Co., Ltd Yuan
the People’s Republic of and absence of water required
China sample comparison
records on site.
Number of discharge
Violation of Section 2 of
outlets of per-unit air
Article 18 of the Rectification
Yanggu Liuhe Luxin pollutants found Fined 70,625
Regulations on the None completed as
Food Co., Ltd inconsistent with the Yuan.
Administration of Sewage required
provisions of pollutant
Discharge Permits
discharge permits
Violation of Article 41 of
Water used for
the Regulations on Rectification
Laiyang Xinmu absorption in excess of Fined 31,250
Pollution Control of None completed as
Breeding Co., Ltd total pollutant volume Yuan
Large-scale Livestock and required
control indicator
Poultry Breeding
The 400,000t/a feed
plant project’s water
pollutant treatment
facility was not
operational, such that
Violation of Article 39 of the production
Rectification
Liaoning Xinwang the Water Pollution Control wastewater in the Fined 150,000
None completed as
Techonlogy Co., Ltd Law of the People’s washing and Yuan
required
Republic of China disinfecting shop was
directly discharged into
the ditches east of the
factory premises via the
rainstorm pipeline
without treatment.
175
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Related pollution
control facilities
required were not built
in place as required, the
rain-sewage separating
ditches inside the
environmental
protection station were
Violation of Article 39 of not built in place, dosing
Hengnan Muyun the Regulations on equipment and blower Rectification
Fined 40,000
Eco-agriculture Co., Pollution Control of equipment were not None completed as
Yuan
Ltd Large-scale Livestock and installed, nor were any required
Poultry Breeding third parties engaged to
make comprehensive
utilization and bio-safe
treatment of wastes
from livestock and
poultry breeding
operations before the
plant was put into
operation.
Ammonia gas and odor
concentrations in
production process
waste gases and other
Violation of Article 18 of
Beijing Xinliu waste gases were found Rectification
the Air Pollution Control Fined 110,000
Farming Technology in excess of the None completed as
Law of the People’s Yuan
Co., Ltd emission standards at required
Republic of China
the fugitive emission
monitoring points along
the perimeter of the
factory premises.
The bulk materials
handling process was
not conducted in closed
spaces and no
Violation of Article 48 of
centralized collection Rectification
Yanshi Liuhe Co., the Air Pollution Control Fined 77,600
and treatment measures None completed as
Ltd Law of the People’s Yuan
were adopted to control required
Republic of China
or reduce emissions of
dust and gaseous
pollutants generated in
the internal transport
176
2021 Semiannual Report of New Hope Liuhe Co., Ltd
and handling of
materials.
Failure to adopt
effective measures
nearby the lifting pond
of the sow building,
Violation of Section 2 of
Beijing Xinliu resulting in overspill of Rectification
Article 48 of Beijing Fined 10,000
Farming Technology wastewaters and feces None completed as
Municipal Regulations on Yuan
Co., Ltd from livestock and required
Water Pollution Control
poultry breeding
operations, and
subsequent
environmental pollution.
Effluent leakage from
the oxidation pond of
the sewage treatment
station and failure to
prevent leakage and
Violation of Article 19 of
seepage of wastes from
the Regulations on Rectification
Wulian Xinhao livestock and poultry Fine 15,625
Pollution Control of None completed as
Farming Co., Ltd breeding operations Yuan
Large-scale Livestock and required
when conducting
Poultry Breeding
livestock and poultry
breeding activities and
treating wastes from
livestock and poultry
breeding.
Failure to take effective
Violation of Article 19 of measures in livestock
the Regulations on and poultry breeding Rectification
Hubei Xinhao Fined 300,000
Pollution Control of activities resulted in None completed as
Farming Co., Ltd Yuan
Large-scale Livestock and seepage of wastes from required
Poultry Breeding livestock and poultry
breeding operations.
Wastewaters generated
from the breeding farm
were led to the open
Violation of Article 39 of
ground on the west side Rectification
Weinan Xinliu the Water Pollution Control Fined 150,000
from the enclosure wall None completed as
Technology Co., Ltd Law of the People’s Yuan
west of the sewage required
Republic of China
treatment station via
hoses of the sewage
pumping vehicles
177
2021 Semiannual Report of New Hope Liuhe Co., Ltd
without being treated or
use of any anti-seepage
measures.
The sewage catchment
bond inside the complex
spilled over due to
failure of the sewage
pumps, resulting in
passage of about 2-3
Violation of Article 39 of cubic meters of sewage
Rectification
Wuqi Xinliu the Water Pollution Control through a Fined 350,000
None completed as
Technology Co., Ltd Law of the People’s 30cm-diameter hidden Yuan
required
Republic of China hole beside the west
enclosure wall of the
factory premises into a
river course outside the
breeding farm, thereby
causing water body
pollution.
Other environmental information disclosure
Company Pollutant discharge permit No. Date issued Expiry date
Linyi Liuhe Food Co., Ltd 91371424690608012M001Y 2018-12-9 2021-12-31
Qiuxian Liuhe Kangyuan Food Co., Ltd 91130430598257627Y001V 2019-03-4 2022-03-3
Lanling New Hope Liuhe Hongjun Food Co., 91371324074412809A001Z 2018-12-31 2021-12-30
Ltd
Pingyi Refrigeration Plant of Shandong New 91371326730643307N001X 2018-12-31 2021-12-30
Hope Liuhe Group Co., Ltd
Qingdao Tianrun Food Co., Ltd 9137028373726158XG001R 2018-11-29 2021-11-28
Xiaoyi New Hope Liuhe Food Co., Ltd 911411815684736446001P 2018-11-5 2021-11-4
Yishui New Hope Liuhe Food Co., Ltd 91371323676832608P001Q 2018-12-31 2021-12-30
Guantao Liuhe Food Co., Ltd 911304338720976263001W 2019-04-29 2022-04-28
Binzhou Liuhe Longda Farming Co., Ltd 91371600780754056D001X 2018-12-15 2021-12-14
Wudi Liuhe Xinyang Food Co., Ltd 913716237892643444001W 2019-01-1 2021-12-31
Zouping Liuhe Livestock Co., Ltd 9137162672075787X3001Y 2018-12-17 2021-12-16
Shanxian Liuhe Feed Co., Ltd Food Branch 91371722054960365G001W 2019-01-1 2021-12-31
Caoxian Liuhe Food Co. ,Ltd 91371721668055386B001Y 2019-01-1 2021-12-31
Jiaxiang New Hope Liuhe Food Co., Ltd 91370829MA3C7NQJ53001V 2018-12-11 2021-12-10
Yuncheng Liuhe Food Co., Ltd 913717257939188497001R 2019-01-1 2021-12-31
Anshan Liuhe Food Co., Ltd 91210321664575659M001R 2018-12-14 2021-12-13
Panjin Liuhe Farming Co., Ltd 91211121696196493W001R 2018-12-22 2021-12-21
Dong’e Liuhe Lvjia Food Co., Ltd 91371524554382151H001Y 2018-12-4 2021-12-3
178
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Liaocheng Liuhe Rongda Farming Co., Ltd 913715267986527441001Q 2018-12-13 2021-12-12
Shenxian New Hope Liuhe Qingsizhai Food 91371522081794657Y001X 2018-12-14 2021-12-13
Co., Ltd
Yanggu Liuhe Luxin Food Co., Ltd 91371521684826830M001Q 2018-12-3 2021-12-2
Weifang Tianhui Food Co., Ltd 913707837961923691001R 2019-01-1 2021-12-31
Weifang Heshengyuan Food Co., Ltd 91370784771026284D001X 2019-01-1 2021-12-31
Luoyang Liuhe Huiquan Food Co., Ltd 914103816794610724001P 2018-09-30 2021-09-29
Hebi Liuhe Zhizhen Food Co., Ltd 91410621MA3X68M315001Y 2018-11-28 2021-11-27
Laiwu New Hope Liuhe Food Co., Ltd 91371202082953517U001Q 2018-12-24 2021-12-23
Dezhou Liuhe Zhikang Food Co., Ltd 91371421673188095B001W 2019-01-1 2021-12-31
Feixian Liuhe Huahai Food Co., Ltd 913713255903361016001Y 2018-12-31 2021-12-30
Fuxin Liuhe Farming Co., Ltd Food Branch 91210900749795052A001V 2018-12-12 2021-12-11
Taiqian New Hope Liuhe Luxin Food Co., Ltd 91410927MA483TF88Y001V 2020-05-27 2023-05-26
Laoting Liuhe Xinmeizi Food Co., Ltd 91130225590963076Q001Z 2018-12-11 2021-12-10
Qixia Refrigeration Plant of Shandong New 91370686731690885C001Z 2019-03-6 2022-03-5
Hope Liuhe Group Co., Ltd
Laiyang Tianye Food Co., Ltd 913706826705109232001Y 2019-01-1 2021-12-31
Tai’an Taishan Liuhe Food Co., Ltd 9137090066443838XT001U 2019-08-15 2022-08-14
Shandong New Hope Liuhe Group Co., Ltd 913713127232785168001Q 2019-04-30 2022-04-29
Linyi Branch
Qingdao Liuhe Wanfu Food Co., Ltd 91370285697168937U001W 2018-12-7 2021-12-6
Fenxi New Hope Liuhe Food Co., Ltd 911410346966540364 2019-06-15 2022-06-14
Beijing Kinghey Food Co., Ltd 91110000741567725K001Z 2018-12-21 2021-12-20
Hebei Kinghey Meat Industry Co., Ltd 91130581776166315U001Z 2018-12-14 2021-12-13
Liaoning Kinghey Food Co., Ltd 91210113784575311A001Y 2018-12-20 2021-12-19
Chengdu Hope Food Co., Ltd 91510132621702689Y001P 2018-10-18 2021-10-17
Zhejiang Xindongwan Agricultural 91330100563025041U 2020-05-25 2023-05-24
Development Co., Ltd
Hangzhou Guanglv Breeding Co., Ltd 91330100673956664C 2020-05-25 2023-05-24
Rui’an New Hope Liuhe Farming Co., Ltd Pending application
Zhejiang Yihai Agricultural Development Co., 91330803MA29U3RA4T001X 2020-06-28 2025-06-27
Ltd
Ningbo New Hope Liuhe Farming Co., Ltd Pending application
Other information related to environmental protection
None
II. Social responsibility
1. We supervised and guided production operations of existing key poverty-relief projects in operation each month to ensure
effective operation of the existing poverty relief projects and solidify and expand the poverty-relief achievements. We ensured
179
2021 Semiannual Report of New Hope Liuhe Co., Ltd
effective connection between poverty relief efforts and rural revitalization.
2. Vigorously conducting rural revitalization
In light of the company’s business portfolio and by leveraging the company’s strengths, in response to the call of the Party and
government to facilitate rural revitalization, we plan to do five things in the next five years, or abbreviated as “five -five program” i.e.,
investing 50.0 billion Yuan in industrial revitalization in rural areas; creating 50,000 additional jobs to drive college students, farmers
and other agricultural practitioners to get employed; training 50,000 new-type farmers free of charge to contribute to the talent
revitalization in rural areas; serving 50,000 farming-related entities and helping farming households and micro, small and
medium-sized businesses grow; building 5 rural revitalization demonstration bases and creating models of digital approach to rural
revitalization.
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
Section 6 Significant Events
I. Commitme nts fulfilled within the reporting period and not yet fulfilled beyond the time
limit as at the end of the reporting period by the actual controller, shareholders, affiliates,
acquirers and corporate and other commitment-related parties of the company
√ applicable □ not applicable
Period
Time of
Cause of Committing Type of of Performa
Content of commitment commitme
commitment party commitment commi nce
nt
tment
New Hope Group Co., Ltd will not list for
trading or transfer its shares within 36 months
of acquisition of the circulation right. Upon the
expiration of the aforesaid lockup period, the
original non-tradable shares may be listed for
sale at a price of no less than 6.8 Yuan only
when the company’s stock closing price
Commitmen Commit
Shareholding reform New Hope exceeds 6.8 Yuan for any consecutive 5 trading January
ts to reduced None ments
commitments Group Co., Ltd days. The prices of the aforesaid shares offered 19, 2006
shareholding honored
for sale will be adjusted accordingly when the
company implements profit distribution,
transfer of capital reserve to share capital,
additional issue of new shares, shares allotment,
conversion of convertible bonds into shares or
shareholding reduction of the same ratio of all
shareholders.
Commitments made
in acquisition
None None None None None None
reports or equity
change reports
In order to preserve the legitimate rights and
Commitmen interests of the company after significant asset
ts regarding reorganizations, the aforesaid shareholders
New Hope
horizontal undertake that the covenanters currently are not
Group Co., Ltd;
Commitments made competition, directly or indirectly engaged in any business Commit
South Hope December
at the time of asset related-party activities that constitute horizontal competition None ments
Industrial Co. 31, 2010
reorganization transactions with the business conducted by the listed honored
Ltd; Liu
and company; while the covenanters actually
Yonghao
occupation control the listed company, the covenanters and
of funds other companies (except for listed companies)
controlled by them will not directly or indirectly
181
2021 Semiannual Report of New Hope Liuhe Co., Ltd
engage in any business activities that constitute
horizontal competition with the business
conducted by the listed company, nor engage in
any activities that might damage the interests of
the listed company..
In order to reduce and regulate the possible
related-party transactions of the company after
significant asset reorganizations, the aforesaid
shareholders undertake that they will avoid or
reduce related-party transactions with the listed
company and its subsidiaries whenever
possible; execute standard-compliant
related-party transaction agreements with the
listed company with respect to related-party
transactions that cannot be avoided or have
Commitmen reason to exist and perform approval procedure
ts regarding according to the applicable laws, regulations,
New Hope horizontal rules and other normative documents and the
Group Co., Ltd; competition, articles of association, whereby the prices of Commit
December
South Hope related-party related-party transactions will be determined None ments
31, 2010
Industrial Co. transactions according to the prices when the same or honored
Ltd; and similar transactions are conducted with
occupation independent third parties without related-party
of funds relationship in order to ensure prices of
related-party transactions are fair; undertake to
perform the information disclosure obligations
for related-party transactions according to
applicable laws, regulations and articles of
association; undertake not to illegally transfer
funds or profits of the listed company through
related-party transactions or jeopardize the
interests of the listed company and its
non-related shareholders through related-party
transactions.
After completion of significant asset
organization of the company, South Hope will
become a shareholder of the company, the
New Hope
shares controlled by New Hope Group in the
Group Co., Ltd; Other Commit
company will further increase and New Hope December
South Hope commitment None ments
Group and South Hope undertake as follows 31, 2010
Industrial Co. s honored
with respect to ensuring the independence of the
Ltd;
company: 1. Ensure the independence of assets
of the listed company; 2. Ensure the financial
independence of the listed company; 3. Ensure
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
the organizational independence of the listed
company; 4. Ensure the business
independence of the listed company; 5. Ensure
the relative independence of employees of the
listed company.
During my holding of shares/equities in
the listed company and Yangling Besun:
1. I, my close family members (including
spouse, parents, parents and siblings of spouse
and their spouses, children aged above 18 and
their spouses, siblings of spouses and parents of
spouses of children, the same below) and
companies controlled by me and my close
family members (indirectly directly and
indirectly)have not and will not directly or
indirectly engage in any activities that
constitute horizontal competition with the swine
breeding, pig farming, slaughtering, processing
Gao Zhanhe;
and feed production businesses (hereinafter,
Yan Junfang;
“main business of the listed company”) that the
Yan Suifang;
Commitmen listed company and its majority-owned
Yangling Fengyi
ts regarding subsidiaries mainly conduct in any manner.
Equity
horizontal 2. With respect to wholly-owned
Investment
competition, companies and directly or indirectly Commit
Management December
related-party majority-owned companies controlled by me None ments
Center (LP); 28, 2016
transactions and my close family members, I and my close honored
Yangling
and family members will cause such companies to
Xiangyuan
occupation perform the same obligations in this letter of
Equity
of funds commitments as mine through appointed
Investment
agencies and personnel (including but not
Management
limited to directors and managers) and exercise
Center (LP)
of the majority-owned status and undertake not
to incur horizontal competition with the main
business of the listed company.
3. If I, any of my close family members or
companies over which I or any of my close
family members has control has any business
opportunities to engage or participate in any
activities that might compete with the main
business of the listed company, the listed
company will be immediately notified of the
aforesaid business opportunities and I will make
the utmost effort to give such business
opportunities to the listed company during the
183
2021 Semiannual Report of New Hope Liuhe Co., Ltd
reasonable period specified in the notice if the
listed company makes a positive reply
expressing its willingness to utilize such
business opportunities.
4. I acknowledge that each and every
commitment indicated in this letter of
commitments is independently enforceable
commitment and any commitment that is held
to be invalid or terminated will not affect the
validity of all remaining commitments; in case
of violation of any of the aforesaid
commitments, I will bear the direct or indirect
economic losses and damages so caused to the
listed company and the costs and expenses in
connection therewith.
During the period in which I holds
shares/equities in the listed company and
Yangling Besun and I or my affiliates are
defined as the listed company and its
majority-owned subsidiaries as specified by the
securities regulatory rules:
1. With respect to the related-party
transactions already existing and unavoidable in
Gao Zhanhe;
the future between I and companies controlled
Yan Junfang;
by me (if any) and the listed company and its
Yan Suifang;
Commitmen majority-owned subsidiaries, I undertake to
Yangling Fengyi
ts regarding follow the arm’s length principle of market
Equity
horizontal transaction, i.e., normal commercial terms, to
Investment
competition, make transactions with the listed company and Commit
Management December
related-party its majority-owned subsidiaries. If I failed to None ments
Center (LP); 28, 2016
transactions make any transactions with the listed company honored
Yangling
and and its majority-owned subsidiaries according
Xiangyuan
occupation to the arm’s length principle of market
Equity
of funds transaction, causing losses or having caused
Investment
losses to the listed company and its
Management
majority-owned subsidiaries, I will be liable for
Center (LP)
indemnification.
2. I will perform in good faith the
obligations as a shareholder of the listed
company, fully respect the independent status of
legal person of the listed company and
safeguard the independent operation and
autonomous decision making of the listed
company. I will cause directors of the listed
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
company nominated by me (if any) to perform
their duty of faith and diligence according to
law in strict accordance with the Company Law
of China and the articles of association of the
listed company.
3. I and my affiliates undertake not to
occupy any funds of the listed company by
means of borrowings, debt service, advance or
otherwise or require the listed company provide
any illegal guarantees for the benefit of me and
my affiliates.
4. If the listed company has to incur
unavoidable related-party transactions with me
or any of my affiliates in its future business
activities, I will cause such transactions to
perform related procedures strictly according to
the applicable Chinese laws and regulations,
articles of association of the listed company and
related rules of the listed company and I will
strictly perform the obligation not to vote when
the general meetings of the listed company vote
on related-party transactions; execute
agreements with the listed company and timely
conduct information disclosure according to
law; guarantee that such transactions will be
conducted according to normal commercial
conditions and I and my affiliates will not
require, or accept, the listed companies to offer
any conditions more favorable than those
offered to third parties in any arm’s length
transaction, and undertake not to jeopardize the
legitimate rights and interests of the listed
company and other shareholders through
related-party transaction.
5. I and my affiliates will strictly and in
good faith perform various related-party
transaction agreements executed with the listed
company. I and my affiliates will not seek from
the listed company any interests or benefits
beyond those set forth in the aforesaid
agreements.
New Hope Commitmen
Commitments made Subjects of issuance undertake not to transfer October 18 Commit
Group Co., Ltd, ts regarding
at the time of IPO or any stocks privately placed this time within 18 29, 2020 month ments
South Hope restricted
185
2021 Semiannual Report of New Hope Liuhe Co., Ltd
refinancing Industrial Co., sale of months of the end of this issuance. s honored
Ltd shares
Equity incentive
None None None None None None
commitments
Other commitments
made to the
minority None None None None None None
shareholders of the
company
Whether the
commitments have
Yes
been fulfilled on
time
If commitments
were not performed
and completed
within the time
limit, the specific
Not applicable
reasons for failure to
complete
performance and the
next work plans
should be detailed.
II. Occupation of non-operating funds of the listed company by controlling shareholders and
their related parties
□ applicable √ not applicable
The company had no occupation of non-operating funds of the listed company by controlling shareholders and their related parties
during the reporting period.
III. Illegal external guarantees
□ applicable √ not applicable
The company had no illegal external guarantees during the reporting period.
IV. Appointme nt and dismissal of accounting firm
Whether the semiannual financial report ahs been audited
□ yes √ no
The company’s semiannual report was not audited.
186
2021 Semiannual Report of New Hope Liuhe Co., Ltd
V. Re marks of the board of directors and board of supervisors on the “nonstandard auditor’s
report” issued by the accounting firm for this reporting period
□ applicable √ not applicable
VI. Remarks of the board of directors on details related to the “nonstandard auditor’s
report” for the previous year
□ applicable √ not applicable
VII. Events related to bankruptcy reorganization
□ applicable √ not applicable
The company did not incur any events related to bankruptcy reorganization during the reporting period.
VIII. Litigations
Major litigations and arbitrations
□ applicable √ not applicable
The company had no significant litigations or arbitrations during the reporting period.
Other litigations
□ applicable √ not applicable
IX. Penalties and rectifications
□ applicable √ not applicable
The company had no penalties or rectifications during the reporting period.
X. Status of integrity of the company and its controlling shareholders and actual controllers
□ applicable √ not applicable
XI. Significant related-party transactions
1. Related-party transactions related to daily operations
□ applicable √ not applicable
The company did not make any related-party transactions related to daily operations during the reporting period.
2. Related-party transactions incurred by acquisition or sale of assets or equities
□ applicable √ not applicable
The company did not make any related-party transactions of acquisition or sale of assets or equities during the reporting period.
187
2021 Semiannual Report of New Hope Liuhe Co., Ltd
3. Related-party transactions of joint external investment
□ applicable √ not applicable
The company did not make any related-party transactions of joint external investment during the reporting period.
4. Dealings of financial claims and debts with related parties
√ applicable □ not applicable
Whether there were dealings of non-operating financial claims and debts with related parties
□ yes √ no
The company had no non-operating dealings of financial claims or debts with related parties during the reporting period.
5. Dealings with affiliated finance companies and finance companies controlled by the company
√ applicable □ not applicable
Deposit business
Related-part Daily maximum Beginning
Range of deposit Amount incurred Ending balance
Related party y deposit limit balance (10,000
interest rates (10,000 Yuan) (10,000 Yuan)
relationship (10,000 Yuan) Yuan)
New Hope Finance Co.,
Affiliate 1,000,000.00 0.35%-4.07% 484,986.71 169,705.12 654,691.83
Ltd
Loan business
Beginning
Related-party Loan limit Range of loan Amount incurred Ending balance
Related party balance (10,000
relationship (10,000 Yuan) interest rates (10,000 Yuan) (10,000 Yuan)
Yuan)
New Hope Finance Co.,
Affiliate 3,500.00 4.00% 4,161.50 -661.50 3,500.00
Ltd
Credit or other financial businesses
Related-party Total amount (10,000 Amount actually incurred
Related party Business type
relationship Yuan) (10,000 Yuan)
New Hope Finance Co., Other financial
Affiliate 494,578.52 494,578.52
Ltd businesses
6. Other significant related-party transactions
□ applicable √ not applicable
The company had no other significant related-party transactions during the reporting period.
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2021 Semiannual Report of New Hope Liuhe Co., Ltd
XII. Significant contracts and their performance
1. Trusteeship, contracting and leasing matters
(1) Trusteeship
□ applicable √ not applicable
The company had no trusteeship during the reporting period.
(2) Contracting
□ applicable √ not applicable
The company had no contracting during the reporting period.
(3) Leasing
□ applicable √ not applicable
The company had no leasing during the reporting period.
2. Significant guarantees
√ applicable □ not applicable
Unit: 10,000 Yuan
External guarantees provided by the company and its subsidiaries (excluding guarantees provided for subsidiaries)
Whethe
Whether
Date of related r
Guara Amount Guara Counter perform
Name of announcement and Guarant related-
nteed Date actually actually Type of nties guarante ance
guarantee disclosure of ee party
amoun incurred guarante guarantee (if es (if was
beneficiary guaranteed period guarant
t ed any) any) complet
amount ee or
ed
not
Guarantees provided by the company for its subsidiaries
Whethe
Whether
r
Date of related Guara Amount Guara Counter perform
Name of Guarant related-
announcement and nteed Date actually actually Type of nties guarante ance
guarantee ee party
disclosure of amoun incurred guarante guarantee (if es (if was
beneficiary period guarant
guaranteed amount t ed any) any) complet
ee or
ed
not
Anyang Joint and 2380
April 29, 2020 30,000 January 20, 2021 20,000 None None No Yes
Xinliu several days
189
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Technology liability
Co., Ltd guarantee
Anyue New Joint and
Hope Liuhe several 2191
April 29, 2020 20,000 May 19, 2021 4,300 None None No Yes
Farming liability days
Co., Ltd guarantee
Baiyin New
Joint and
Hope
several 1094
Farming April 29, 2020 20,000 August 31, 2020 4,750 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Beijing Joint and
Kinghey several 1825
April 29, 2020 25,000 June 12, 2020 4,962.71 None None No Yes
Food Co., liability days
Ltd guarantee
Beijing
Joint and
Xinliu
several 2908
Farming April 29, 2020 49,749 June 30, 2020 23,500 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Beijing
Joint and
Xinliu
several 4017
Farming May 29, 2021 251 June 25, 2021 118.35 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Joint and
Bijie Xinliu
several 3286
Farming April 29, 2020 11,000 May 19, 2020 10,560 None None No Yes
liability days
Co., Ltd
guarantee
Caoxian Joint and
Xinhao several 1817
October 25, 2019 25,000 April 28, 2020 25,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Changle
Joint and
New Hope
several 1823
Liuhe April 29, 2020 15,000 February 28, 2021 3,411 None None No Yes
liability days
Farming
guarantee
Co., Ltd
Changyi Joint and
1096
Xinhao April 29, 2020 10,000 June 19, 2020 9,875 several None None No Yes
days
Livestock liability
190
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Co., Ltd guarantee
Chenzhou Joint and
Xinhao 100,00 several 3286
October 25, 2019 April 15, 2020 40,250 None None No Yes
Farming 0 liability days
Co., Ltd guarantee
Shanxian Joint and
Xinhao several 1814
April 29, 2020 15,000 January 8, 2021 11,500 None None No Yes
Farming liability days
Co., Ltd guarantee
Dong’e New
Joint and
Hope Liuhe
several 1825
Swine April 29, 2020 20,000 May 22, 2020 18,000 None None No Yes
liability days
Breeding
guarantee
Co., Ltd
Donghai Joint and
Xinhao several 1825
April 29, 2020 42,000 August 18, 2020 18,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Dongying
Joint and
Xinhao
several 1782
Modern April 29, 2020 26,500 December 1, 2020 24,000 None None No Yes
liability days
Farming
guarantee
Co., Ltd
Dongying
Joint and
Xinhao
several 1754
Modern April 29, 2020 26,500 December 29, 2020 24,000 None None No Yes
liability days
Farming
guarantee
Co., Ltd
Fuping
Joint and
Xinliu
several 3111
Farming April 29, 2020 11,000 November 12, 2020 8,300 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Joint and
Fuxin Liuhe
several
Farming April 29, 2020 40,000 March 18, 2021 10,000 None None 413 days No Yes
liability
Co., Ltd
guarantee
Gansu New Joint and
Hope Liuhe several 2547
April 29, 2020 40,000 June 29, 2020 15,000 None None No Yes
Farming liability days
Co., Ltd guarantee
191
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Gaotang Joint and
Xinhao several 2190
April 29, 2020 24,875 July 8, 2020 9,666 None None No Yes
Farming liability days
Co., Ltd guarantee
Gaotang Joint and
Xinhao several 1956
April 29, 2020 18,125 August 13, 2020 7,042.73 None None No Yes
Farming liability days
Co., Ltd guarantee
Guanling Joint and
Xinmu several 2389
April 29, 2020 20,000 October 29, 2020 13,000 None None No Yes
Breeding liability days
Co., Ltd guarantee
Guangxi
Joint and
New Hope
several
Liuhe April 29, 2020 20,000 August 14, 2020 2,000 None None 364 days No Yes
liability
Breeding
guarantee
Co., Ltd
Guangyuan Joint and
Xinchi several 1192
April 29, 2020 24,000 March 16, 2021 800 None None No Yes
Farming liability days
Co., Ltd guarantee
Guangyuan
Joint and
Xinhao
several 3286
Agricultural April 29, 2020 69,000 June 30, 2020 35,000 None None No Yes
liability days
Developmen
guarantee
t Co., Ltd
Joint and
Guangzhou
several
Liuhe Feed April 29, 2020 20,000 May 26, 2021 4,499 None None 364 days No Yes
liability
Co., Ltd
guarantee
Guigang
Joint and
Xinliu
several 1310
Farming April 29, 2020 35,000 March 12, 2021 14,500 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Hainan
Joint and
Dengmai
several 1094
New Hope April 29, 2020 30,000 October 23, 2020 4,700 None None No Yes
liability days
Farming
guarantee
Co., Ltd
Hainan October 25, 2019 20,000 March 27, 2020 8,000 Joint and None None 2064 No Yes
192
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Lingao several days
Xinliu liability
Breeding guarantee
Co., Ltd
Hebei
Xinhao Joint and
Fucheng several 2922
April 29, 2020 26,500 June 30, 2020 25,423 None None No Yes
Agricultural liability days
Technology guarantee
Co., Ltd
Hezhou Joint and
Xinhao several 3650
October 25, 2019 48,000 April 15, 2020 35,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Heishan
Joint and
Xinliu
several 1091
Farming April 29, 2020 50,000 February 23, 2021 14,500 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Hengnan Joint and
Muyun several 3288
April 29, 2020 23,000 May 19, 2020 14,000 None None No Yes
Eco-agricult liability days
ure Co., Ltd guarantee
Hengyang Joint and
Xinhao several 1821
April 29, 2020 30,000 November 2, 2020 9,631 None None No Yes
Farming liability days
Co., Ltd guarantee
Hubei Joint and
Xinhao 23,892.7 several 2555
April 29, 2020 42,498 May 28, 2020 None None No Yes
Farming 2 liability days
Co., Ltd guarantee
Hubei Joint and
Xinhao several 2905
April 29, 2020 67,502 October 9, 2020 37,950 None None No Yes
Farming liability days
Co., Ltd guarantee
Huanghua Joint and
Xinhao several
October 25, 2019 36,000 January 2, 2020 16,000 None None 730 days No Yes
Technology liability
Co., Ltd guarantee
Jiaxiang Joint and
1447
New Hope April 29, 2020 14,000 June 24, 2020 12,600 several None None No Yes
days
Liuhe Swine liability
193
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Breeding guarantee
Co., Ltd
Joint and
Jiangmen
several 1096
Liuhe Feed April 29, 2020 13,333 March 26, 2021 10,000 None None No Yes
liability days
Co., Ltd
guarantee
Joint and
Jiangmen
several
Liuhe Feed April 29, 2020 6,667 May 7, 2021 5,000 None None 364 days No Yes
liability
Co., Ltd
guarantee
Jiangxi New
Joint and
Hope Liuhe
several 1829
Farming April 29, 20210 22,000 May 10, 2021 16,700 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Julu Xinliu Joint and
Farming several 1825
April 29, 2020 30,000 May 19, 2021 7,600 None None No Yes
Technology liability days
Co., Ltd guarantee
Kangping Joint and
Xinwang several 1812
April 29, 2020 29,400 February 18, 2021 15,750 None None No Yes
Farming liability days
Co., Ltd guarantee
Kangping Joint and
Xinwang several 1094
April 29, 2020 5,600 February 23, 2021 3,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Joint and
Juye Xinhao
several 2539
Farming April 29, 2020 26,000 July 9, 2020 26,000 None None No Yes
liability days
Co., Ltd
guarantee
Laixi New Joint and
Hope Liuhe 22,137.9 several 3644
October 25, 2019 60,825 April 17, 2020 None None No Yes
Farming 1 liability days
Co., Ltd guarantee
Laixi New Joint and
Hope Liuhe several 1758
April 29, 2020 22,195 August 27, 2020 8,078 None None No Yes
Farming liability days
Co., Ltd guarantee
Laixi New 15,278.9 Joint and 1826
April 29, 2020 41,980 October 28, 2020 None None No Yes
Hope Liuhe 7 several days
194
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Farming liability
Co., Ltd guarantee
Kunming
New Hope Joint and
Animal several
April 29, 2020 12,000 November 2, 2020 7,000 None None 360 days No Yes
Nutritious liability
Food Co., guarantee
Ltd
Kunming
Joint and
New Hope
several
Agricultural April 29, 2020 5,000 September 21, 2020 2,000 None None 361 days No Yes
liability
Technology
guarantee
Co., Ltd
Laibin Joint and
Xinhao several 1826
April 29, 2020 50,000 March 5, 2021 28,710 None None No Yes
Farming liability days
Co., Ltd guarantee
Liquan New Joint and
Hope Liuhe several 1329
April 29, 2020 30,000 September 29, 2020 17,200 None None No Yes
Farming liability days
Co., Ltd guarantee
Lezhi Joint and
Xinmu several 2912
April 29, 2020 27,000 March 5, 2021 21,600 None None No Yes
Farming liability days
Co., Ltd guarantee
Liaoning Joint and
Kingley several
April 29, 2020 5,000 October 16, 2020 5,000 None None 364 days No Yes
Food Co., liability
Ltd guarantee
Laiyang Joint and
Xinhao several 1814
April 29, 2020 20,000 April 30, 2020 19,400 None None No Yes
Livestock liability days
Co., Ltd guarantee
Laiyang Joint and
Xinmu several 1813
April 29, 2020 15,000 November 18, 2020 7,000 None None No Yes
Breeding liability days
Co., Ltd guarantee
Liaoning Joint and
Xinwang 56,762.1 several 3994
October 25, 2019 43,301 March 27, 2020 None None No Yes
Techonlogy 6 liability days
Co., Ltd guarantee
195
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Liaoning Joint and
Xinwang several 1090
April 29, 2020 26,699 April 13, 2021 35,000 None None No Yes
Techonlogy liability days
Co., Ltd guarantee
Luding
Joint and
Xinyue
several 2956
Farming April 29, 2020 28,000 April 2, 2021 4,700 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Liaocheng Joint and
Xinhao several 1809
October 25, 2019 25,000 December 12, 2019 16,844.7 None None No Yes
Farming liability days
Co., Ltd guarantee
Joint and
Liuhe Feed
several
(Huaian) April 29, 2020 10,000 December 3, 2020 1,500 None None 364 days No Yes
liability
Co., Ltd
guarantee
Longhui
Joint and
New Hope
several 1475
Liuhe April 29, 2020 12,100 November 6, 2020 5,500 None None No Yes
liability days
Farming
guarantee
Co., Ltd
Longhai
Joint and
New Hope
several 1824
Liuhe April 29, 2020 35,000 December 23, 2020 2,000 None None No Yes
liability days
Farming
guarantee
Co., Ltd
Liuzhou
Joint and
Xinliu
several 2905
Farming April 29, 2020 23,000 October 27, 2020 8,500 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Meishan Joint and
Xinmu several 2917
April 29, 2020 26,000 March 30, 2021 15,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Neiqiu
Joint and
Xinliu
several 3286
Farming April 29, 2020 30,000 July 20, 2020 30,000 None None No Yes
liability days
Technology
guarantee
Co., Ltd
196
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Ningbo New Joint and
Hope Liuhe several 1825
April 29, 2020 18,001 July 3, 2020 15,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Ningbo New Joint and
Hope Liuhe several
April 29, 2020 1,999 November 25, 2020 1,666 None None 482 days No Yes
Farming liability
Co., Ltd guarantee
Nanjing Joint and
Xinmu several 1826
April 29, 2020 6,307 September 22, 2020 5,539.29 None None No Yes
Farming liability days
Co., Ltd guarantee
Nanjing Joint and
Xinmu several 1744
April 29, 2020 5,693 November 2, 2020 5,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Nanchong Joint and
New Hope several
April 29, 2020 16,000 March 29, 2021 5,000 None None 920 days No Yes
Feed Co., liability
Ltd guarantee
Nanning
Joint and
Xinliu
several 2920
Farming October 25, 2019 20,000 April 15, 2020 12,500 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Ningming Joint and
Xinhao several 3651
October 25, 2019 60,000 April 15, 2020 40,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Pucheng Joint and
Xinliu 15,037.8 several 1825
April 29, 2020 23,500 November 20, 2020 None None No Yes
Technology 8 liability days
Co., Ltd guarantee
Puyang
Joint and
Xinliu
several 1673
Farming April 29, 2020 28,000 January 6, 2021 20,000 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Rongxian Joint and
2265
Xinmu October 25, 2019 27,000 March 12, 2020 14,400 several None None No Yes
days
Farming liability
197
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Co., Ltd guarantee
Pingyuan
Joint and
Xinliu
several 2163
Farming April 29, 2020 11,000 March 1, 2021 11,000 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Pizhou New Joint and
Hope Luihe several 1825
April 29, 2020 35,000 March 31, 2021 18,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Raoyang Joint and
Xinhao several 1095
April 29, 2020 5,000 April 30, 2021 5,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Shandong Joint and
New Hope 200,00 several 1253
October 25, 2019 November 22, 2019 14,000 None None No Yes
Liuhe Group 0 liability days
Co., Ltd guarantee
Ruzhou
Joint and
Quansheng
several 1673
Farming April 29, 2020 8,400 January 6, 2021 8,400 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Shenze New Joint and
Hope Liuhe several 2909
April 29, 2020 33,000 May 19, 2020 19,862 None None No Yes
Breeding liability days
Co., Ltd guarantee
Rugao Joint and
Xinhao several 1094
April 29, 2020 10,000 October 15, 2020 5,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Ruian New Joint and
Hope Liuhe several 1826
April 29, 2020 6,000 November 13, 2020 5,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Shiyan
Joint and
Xinyue
several 2918
Farming April 29, 2020 27,000 April 15, 2021 8,500 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Sichuan October 25, 2019 30,000 February 10, 2020 18,000 Joint and None None 1086 No Yes
198
2021 Semiannual Report of New Hope Liuhe Co., Ltd
New Hope several days
Liuhe liability
Farming guarantee
Co., Ltd
Sichuan
Joint and
New Hope
several
Liuhe October 25, 2019 70,000 March 24, 2020 42,000 None None 730 days No Yes
liability
Farming
guarantee
Co., Ltd
Sichuan
Joint and
New Hope
several
Liuhe April 29, 2020 50,000 February 25, 2021 30,000 None None 729 days No Yes
liability
Farming
guarantee
Co., Ltd
Shuozhou Joint and
Xinhao several 1283
April 29, 2020 30,000 September 1, 2020 29,600 None None No Yes
Farming liability days
Co., Ltd guarantee
Taiqian
Joint and
Xinliu
several 2489
Farming April 29, 2020 20,000 August 27, 2020 20,000 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Suixi Joint and
Xinhao several 1826
April 29, 2020 16,000 March 29, 2021 4,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Sichuan
New Hope Joint and
Animal 155,70 34,646.3 several
April 29, 2020 January 11, 2021 None None 305 days No Yes
Nutrition 1 8 liability
Technology guarantee
Co., Ltd
Sichuan
New Hope Joint and
Animal 144,29 32,109.3 several
April 29, 2020 February 8, 2021 None None 170 days No Yes
Nutrition 9 3 liability
Technology guarantee
Co., Ltd
Sichuan Joint and
Xinhe April 29, 2020 17,945 February 5, 2021 7,737.23 several None None 320 days No Yes
Import & liability
199
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Export Co., guarantee
Ltd
Sichuan
Joint and
Xinhe
several
Import & April 29, 2020 2,055 May 20, 2021 886.14 None None 184 days No Yes
liability
Export Co.,
guarantee
Ltd
Tongcheng
Joint and
Xinliu
several 1747
Farming April 29, 2020 19,247 January 27, 2021 7,685.49 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Tongcheng
Joint and
Xinliu
several 2492
Farming April 29, 2020 20,753 February 23, 2021 8,286.77 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Weinan Joint and
Xinliu several 4391
October 25, 2019 49,698 December 24, 2019 49,000 None None No Yes
Technology liability days
Co., Ltd guarantee
Weinan Joint and
Xinliu several 1874
April 29, 2020 7,302 March 2, 2021 7,200 None None No Yes
Technology liability days
Co., Ltd guarantee
Xiangyang Joint and
New Hope several
April 29, 2020 6,500 November 9, 2020 1,000 None None 364 days No Yes
Liuhe Feed liability
Co., Ltd guarantee
Xiajin New Joint and
Hope Liuhe several 2188
October 25, 2019 25,000 February 28, 2020 8,858.7 None None No Yes
Farming liability days
Co., Ltd guarantee
Tangshan Joint and
Xinhao several 1825
October 25, 2019 34,981 April 24, 2020 27,300 None None No Yes
Farming liability days
Co., Ltd guarantee
Tangshan Joint and
Xinhao several 2911
April 29, 2020 49,506 May 8, 2020 38,635.5 None None No Yes
Farming liability days
Co., Ltd guarantee
200
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Tangshan Joint and
Xinhao several 1094
April 29, 2020 12,813 August 31, 2020 10,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Wulian Joint and
Xinhao several 1822
April 29, 2020 32,000 June 24, 2020 10,100 None None No Yes
Farming liability days
Co., Ltd guarantee
Wuhe New Joint and
Hope Liuhe 38,652.2 several 2550
April 29, 2020 59,098 May 20, 2020 None None No Yes
Livestock 3 liability days
Co., Ltd guarantee
Wuhe New Joint and
Hope Liuhe 16,546.3 several 1825
April 29, 2020 25,299 June 4, 2020 None None No Yes
Livestock 6 liability days
Co., Ltd guarantee
Wuhe New Joint and
Hope Liuhe several 2921
April 29, 2020 30,580 September 29, 2020 20,000 None None No Yes
Livestock liability days
Co., Ltd guarantee
Wuhe New Joint and
Hope Liuhe several
April 29, 2020 7,645 October 23, 2020 5,000 None None 353 days No Yes
Livestock liability
Co., Ltd guarantee
Wuhe New Joint and
Hope Liuhe 13,806.0 several 2557
April 29, 2020 21,109 March 24, 2021 None None No Yes
Livestock 7 liability days
Co., Ltd guarantee
Wuhe New Joint and
Hope Liuhe several 1461
May 29, 2021 6,269 June 29, 2021 4,100 None None No Yes
Livestock liability days
Co., Ltd guarantee
Tianjin
Joint and
Xinliu
16,101.6 several 3260
Farming April 29, 2020 41,000 February 5, 2021 None None No Yes
6 liability days
Technology
guarantee
Co., Ltd
Xiajiang Joint and
Xinliu several 1713
April 29, 2020 6,000 February 4, 2021 6,000 None None No Yes
Farming liability days
Co., Ltd guarantee
201
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Joint and
Wuqi Xinliu
several 2622
Technology April 29, 2020 16,000 September 15, 2020 11,000 None None No Yes
liability days
Co., Ltd
guarantee
Yanting Joint and
Xinhao several 1827
April 26, 2019 19,032 September 30, 2019 12,491 None None No Yes
Farming liability days
Co., Ltd guarantee
Yanting Joint and
Xinhao several 1920
April 29, 2020 30,968 August 31, 2020 20,325.3 None None No Yes
Farming liability days
Co., Ltd guarantee
Yangling
Besun Joint and
Agricultural several 1827
April 26, 2019 40,000 September 24, 2019 8,650 None None No Yes
Industry liability days
Group Co., guarantee
Ltd
Joint and
Yijun Liuhe
several
Technology April 29, 2020 3,000 July 31, 2020 3,000 None None 361 days No Yes
liability
Co., Ltd
guarantee
Joint and
Yijun Liuhe
several 4382
Technology October 25, 2019 16,500 November 15, 2019 16,500 None None No Yes
liability days
Co., Ltd
guarantee
Xingren
Joint and
Xinliu
several 2791
Farming April 29, 2020 21,000 September 30, 2020 11,000 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Yingcheng Joint and
Xinhao several 3776
April 29, 2020 60,237 August 18, 2020 30,479.3 None None No Yes
Farming liability days
Co., Ltd guarantee
Yingcheng Joint and
Xinhao several 2922
April 29, 2020 19,763 September 25, 2020 10,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Chongqing Joint and 2556
May 29, 2021 16,000 June 4, 2021 10,000 None None No Yes
Pengshui several days
202
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Xinliu liability
Farming guarantee
Technology
Co., Ltd
Chongqing
Qianjiang
Joint and
District
several 2173
Xinhao April 29, 2020 28,000 May 28, 2021 14,000 None None No Yes
liability days
Farming
guarantee
Technology
Co., Ltd
Yanyuan
Joint and
Xinliu
several 1065
Farming May 29, 2021 72,000 June 15, 2021 14,000 None None No Yes
liability days
Technology
guarantee
Co., Ltd
Yantai Joint and
Xinhao 20,478.1 several 1780
April 29, 2020 33,464 October 12, 2020 None None No Yes
Farming 7 liability days
Co., Ltd guarantee
Yantai Joint and
Xinhao several 1812
April 29, 2020 6,536 October 27, 2020 4,000 None None No Yes
Farming liability days
Co., Ltd guarantee
Yihai Joint and
Agricultural several 1820
April 29, 2020 14,541 August 4, 2020 12,000 None None No Yes
Developmen liability days
t Co., Ltd guarantee
Yihai Joint and
Agricultural several 2737
April 29, 2020 5,459 February 26, 2021 4,505 None None No Yes
Developmen liability days
t Co., Ltd guarantee
Xinji Xinliu Joint and
Farming several 2355
April 29, 2020 45,000 January 8, 2021 40,000 None None No Yes
Technology liability days
Co., Ltd guarantee
Zhenjiang
Joint and
New Hope
several 1783
Liuhe April 29, 2020 20,000 January 29, 2021 20,000 None None No Yes
liability days
Farming
guarantee
Co., Ltd
203
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Joint and
Zibo Xinhao
several 3215
Farming April 29, 2020 12,000 May 6, 2021 2,000 None None No Yes
liability days
Co., Ltd
guarantee
Xiangshan Joint and
Huatong several 1754
April 29, 2020 20,000 May 21, 2021 10,000 None None No Yes
Livestock liability days
Co., Ltd guarantee
Chongqing Joint and
New Hope several 1095
May 29, 2021 30,000 May 31, 2021 17,500 None None No Yes
Feed Co., liability days
Ltd guarantee
Zhaoqing Joint and
Xinhao several 2556
April 29, 2020 21,600 February 10, 2021 21,600 None None No Yes
Farming liability days
Co., Ltd guarantee
Xiaoyi New Joint and
Hope Liuhe several
April 29, 2020 30,000 April 13, 2021 20,000 None None 410 days No Yes
Food Co., liability
Ltd guarantee
Yanggu Joint and
Liuhe Luxin several
April 29, 2020 20,000 December 23, 2020 5,000 None None 376 days No Yes
Food Co., liability
Ltd guarantee
Joint and
New Hope
11,305.1 several 1095
Singapore April 29, 2020 25,078 October 19, 2020 None None No Yes
8 liability days
Pte. Ltd
guarantee
Joint and
New Hope
24,225.3 several 1095
Singapore April 29, 2020 53,738 October 19, 2020 None None No Yes
8 liability days
Pte. Ltd
guarantee
Joint and
New Hope
29,070.4 several 1095
Singapore April 29, 2020 64,485 October 19, 2020 None None No Yes
5 liability days
Pte. Ltd
guarantee
Joint and
New Hope
several 1095
Singapore April 29, 2020 71,650 October 19, 2020 32,300.5 None None No Yes
liability days
Pte. Ltd
guarantee
New Hope April 29, 2020 71,650 October 19, 2020 32,300.5 Joint and None None 1095 No Yes
204
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Singapore several days
Pte. Ltd liability
guarantee
Joint and
New Hope
several 1095
Singapore April 29, 2020 71,650 October 19, 2020 32,300.5 None None No Yes
liability days
Pte. Ltd
guarantee
Joint and
New Hope
several 1095
Singapore April 29, 2020 85,980 October 19, 2020 38,760.6 None None No Yes
liability days
Pte. Ltd
guarantee
Joint and
New Hope
several 1095
Singapore April 29, 2020 71,650 October 19, 2020 32,300.5 None None No Yes
liability days
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 3,583 May 24, 2021 1,615.03 None None 365 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 28,660 February 17, 2021 12,920.2 None None 370 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 42,990 February 22, 2021 19,380.3 None None 365 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
41,990.6 several
Singapore April 29, 2020 93,145 March 29, 2021 None None 372 days No Yes
5 liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 192 March 10, 2021 86.5 None None 170 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 393 April 16, 2021 177.01 None None 90 days No Yes
liability
Pte. Ltd
guarantee
New Hope Joint and
April 29, 2020 589 April 19, 2021 265.51 None None 90 days No Yes
Singapore several
205
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Pte. Ltd liability
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 1,209 June 28, 2021 545.14 None None 30 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 5,116 June 28, 2021 2,306.17 None None 30 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 401 June 25, 2021 180.87 None None 60 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 244 June 25, 2021 110.18 None None 90 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 161 June 18, 2021 72.41 None None 90 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 254 June 15, 2021 114.45 None None 90 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 1,971 June 14, 2021 888.36 None None 90 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 160 June 11, 2021 72.23 None None 179 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 116 June 10, 2021 52.25 None None 90 days No Yes
liability
Pte. Ltd
guarantee
New Hope Joint and
Singapore May 29, 2021 907 June 7, 2021 408.77 several None None 90 days No Yes
Pte. Ltd liability
206
2021 Semiannual Report of New Hope Liuhe Co., Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 271 June 4, 2021 122.07 None None 90 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 5,668 June 2, 2021 2,555.2 None None 30 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 73 May 27, 2021 32.84 None None 180 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 475 May 19, 2021 214.35 None None 90 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 1,236 May 18, 2021 557.01 None None 90 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 492 May 18, 2021 221.76 None None 90 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 579 May 10, 2021 261.19 None None 90 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 654 May 7, 2021 294.94 None None 180 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 4,801 April 21, 2021 2,164.13 None None 128 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 904 April 21, 2021 407.71 None None 170 days No Yes
liability
Pte. Ltd
guarantee
207
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Joint and
New Hope
several
Singapore April 29, 2020 271 April 15, 2021 121.96 None None 80 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 145 April 6, 2021 65.43 None None 90 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 173 March 30, 2021 77.92 None None 178 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 516 March 22, 2021 232.77 None None 180 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 473 March 10, 2021 213.07 None None 180 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 1,857 February 1, 2021 837.33 None None 156 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 1,268 April 21, 2021 571.74 None None 120 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 166 April 20, 2021 74.8 None None 90 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 482 May 17, 2021 217.21 None None 60 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 1,238 June 29, 2021 558.03 None None 120 days No Yes
liability
Pte. Ltd
guarantee
New Hope May 29, 2021 4,801 June 17, 2021 2,164.13 Joint and None None 180 days No Yes
208
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Singapore several
Pte. Ltd liability
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 382 March 17, 2021 171.99 None None 170 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 194 April 6, 2021 87.29 None None 170 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 165 April 23, 2021 74.6 None None 180 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 253 May 25, 2021 113.97 None None 180 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 170 June 29, 2021 76.47 None None 30 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 1,007 February 10, 2021 454.13 None None 180 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 248 March 2, 2021 111.63 None None 170 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 238 March 12, 2021 107.15 None None 170 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 237 April 6, 2021 106.97 None None 170 days No Yes
liability
Pte. Ltd
guarantee
New Hope Joint and
April 29, 2020 1,663 April 26, 2021 749.7 None None 90 days No Yes
Singapore several
209
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Pte. Ltd liability
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 609 May 5, 2021 274.49 None None 180 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 167 May 10, 2021 75.12 None None 170 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 369 May 19, 2021 166.19 None None 170 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 398 May 27, 2021 179.38 None None 170 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 208 June 3, 2021 93.91 None None 30 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 215 June 7, 2021 97.14 None None 170 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 213 June 8, 2021 95.95 None None 60 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 176 June 11, 2021 79.56 None None 170 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 1,237 June 14, 2021 557.71 None None 180 days No Yes
liability
Pte. Ltd
guarantee
New Hope Joint and
Singapore May 29, 2021 376 June 14, 2021 169.67 several None None 60 days No Yes
Pte. Ltd liability
210
2021 Semiannual Report of New Hope Liuhe Co., Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 99 June 15, 2021 44.78 None None 170 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 653 June 17, 2021 294.24 None None 60 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 936 June 17, 2021 421.86 None None 182 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 354 June 21, 2021 159.56 None None 60 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 279 June 21, 2021 125.96 None None 170 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 5,044 June 23, 2021 2,273.98 None None 60 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 931 June 25, 2021 419.62 None None 30 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 119 June 29, 2021 53.75 None None 60 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore May 29, 2021 419 June 29, 2021 188.75 None None 170 days No Yes
liability
Pte. Ltd
guarantee
Joint and
New Hope
several
Singapore April 29, 2020 1,313 May 11, 2021 592.13 None None 90 days No Yes
liability
Pte. Ltd
guarantee
211
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Joint and
New Hope
several
Singapore May 29, 2021 1,313 June 2, 2021 593 None None 180 days No Yes
liability
Pte. Ltd
guarantee
Guangan Joint and
Xinhao 24,635.4 several 1468
April 29, 2020 40,000 April 23, 2021 None None No Yes
Farming 7 liability days
Co., Ltd guarantee
Sanyuan Joint and
New Hope several One
April 30, 2021 400 April 30, 2021 51.05 None None No Yes
Feed Co., liability year
Ltd guarantee
Huanggang
Joint and
New Hope
several One
Feed April 30, 2021 800 April 30, 2021 115.63 None None No Yes
liability year
Technology
guarantee
Co., Ltd
Joint and
Hebei New
several One
Hope Feed April 30, 2021 6,000 April 30, 2021 3.45 None None No Yes
liability year
Co., Ltd
guarantee
Beijing New
Joint and
Hope
several One
Farming April 30, 2021 2,000 April 30, 2021 9.51 None None No Yes
liability year
Technology
guarantee
Co., Ltd
Nanning
Joint and
New Hope
several One
Farming April 30, 2021 4,000 April 30, 2021 269.57 None None No Yes
liability year
Technology
guarantee
Co., Ltd
Wuzhou Joint and
New Hope several One
April 30, 2021 2,000 April 30, 2021 83.26 None None No Yes
Liuhe Feed liability year
Co., Ltd guarantee
Jiangxi New
Joint and
Hope
several One
Farming April 30, 2021 6,000 April 30, 2021 30.63 None None No Yes
liability year
Technology
guarantee
Co., Ltd
Yingtan April 30, 2021 5,000 April 30, 2021 0.48 Joint and None None One No Yes
212
2021 Semiannual Report of New Hope Liuhe Co., Ltd
New Hope several year
Feed Co., liability
Ltd guarantee
Huaihua Joint and
New Hope several One
April 30, 2021 1,500 April 30, 2021 405.29 None None No Yes
Liuhe Feed liability year
Co., Ltd guarantee
Joint and
Chenzhou
several One
Hope Feed April 30, 2021 2,000 April 30, 2021 93.5 None None No Yes
liability year
Co., Ltd
guarantee
Nanchong Joint and
New Hope several One
April 30, 2021 4,000 April 30, 2021 1.39 None None No Yes
Feed Co., liability year
Ltd guarantee
Kunming
New Hope Joint and
Animal several One
April 30, 2021 3,000 April 30, 2021 135.79 None None No Yes
Nutritious liability year
Food Co., guarantee
Ltd
Joint and
Zunyi Jiahao
several One
Feed Co., April 30, 2021 2,000 April 30, 2021 0.67 None None No Yes
liability year
Ltd
guarantee
Ermeishan Joint and
New Hope several One
April 30, 2021 3,000 April 30, 2021 19.85 None None No Yes
Liuhe Feed liability year
Co., Ltd guarantee
Guanghan Joint and
Guoxiong several One
April 30, 2021 800 April 30, 2021 15.62 None None No Yes
Feed Co., liability year
Ltd guarantee
Joint and
Maoming
several One
Liuhe Feed April 30, 2021 2,000 April 30, 2021 164.65 None None No Yes
liability year
Co., Ltd
guarantee
Jieyang Joint and
Guoxiong several One
April 30, 2021 3,000 April 30, 2021 70.02 None None No Yes
Feed Co., liability year
Ltd guarantee
213
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Zhanjiang Joint and
Guoxiong several One
April 30, 2021 500 April 30, 2021 42.6 None None No Yes
Feed Co., liability year
Ltd guarantee
Juxian
Joint and
LIuhe
several One
Xingrun April 30, 2021 500 April 30, 2021 5.59 None None No Yes
liability year
Feed Co.,
guarantee
Ltd
Joint and
Liaocheng
several One
Liuhe Feed April 30, 2021 200 April 30, 2021 17.08 None None No Yes
liability year
Co., Ltd
guarantee
Hubei
Joint and
Tuanfeng
several One
New Hope April 30, 2021 3,000 April 30, 2021 5.73 None None No Yes
liability year
Feed Co.,
guarantee
Ltd
Joint and
Liuhe Feed
several One
(Huaian) April 30, 2021 4,000 April 30, 2021 0.63 None None No Yes
liability year
Co., Ltd
guarantee
Zhucheng Joint and
New Hope several One
April 30, 2021 1,000 April 30, 2021 0.01 None None No Yes
Liuhe Feed liability year
Co., Ltd guarantee
Anyang Joint and
New Hope several One
April 30, 2021 2,000 April 30, 2021 106.09 None None No Yes
Liuhe Feed liability year
Co., Ltd guarantee
Joint and
Yishui Liuhe
several One
Feed Co., April 30, 2021 3,000 April 30, 2021 272.24 None None No Yes
liability year
Ltd
guarantee
Zaozhuang Joint and
New Hope several One
April 30, 2021 2,000 April 30, 2021 40.7 None None No Yes
Liuhe Feed liability year
Co., Ltd guarantee
Yichun New Joint and
One
Hope April 30, 2021 2,000 April 30, 2021 1.54 several None None No Yes
year
Farming liability
214
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Technology guarantee
Co., Ltd
Zoucheng Joint and
New Hope several One
April 30, 2021 200 April 30, 2021 19.42 None None No Yes
Liuhe Feed liability year
Co., Ltd guarantee
Joint and
Liuhe Feed
several One
(Feicheng) April 30, 2021 1,000 April 30, 2021 18.44 None None No Yes
liability year
Co., Ltd
guarantee
Joint and
Yuncheng
several One
Dingtai Feed April 30, 2021 3,000 April 30, 2021 28.71 None None No Yes
liability year
Co., Ltd
guarantee
Joint and
Wudi Liuhe
several One
Feed Co., April 30, 2021 200 April 30, 2021 0.06 None None No Yes
liability year
Ltd
guarantee
Joint and
Qingyun
several One
Liuhe Feed April 30, 2021 400 April 30, 2021 18.3 None None No Yes
liability year
Co., Ltd
guarantee
Joint and
Binzhou
several One
Liuhe Feed April 30, 2021 200 April 30, 2021 6.68 None None No Yes
liability year
Co., Ltd
guarantee
Joint and
Xuancheng
several One
Liuhe Feed April 30, 2021 350 April 30, 2021 151.61 None None No Yes
liability year
Co., Ltd
guarantee
Joint and
Fuyang
several One
Liuhe Feed April 30, 2021 800 April 30, 2021 58.45 None None No Yes
liability year
Co., Ltd
guarantee
Joint and
Wendeng
several One
Liuhe Feed April 30, 2021 3,200 April 30, 2021 5.73 None None No Yes
liability year
Co., Ltd
guarantee
Laiyang Joint and
One
Liuhe Feed April 30, 2021 4,000 April 30, 2021 14.34 several None None No Yes
year
Co., Ltd liability
215
2021 Semiannual Report of New Hope Liuhe Co., Ltd
guarantee
Joint and
Yantai Liuhe
several One
Feed Co., April 30, 2021 400 April 30, 2021 28.5 None None No Yes
liability year
Ltd
guarantee
Joint and
Shanxian
several One
Liuhe Feed April 30, 2021 1,000 April 30, 2021 37.38 None None No Yes
liability year
Co., Ltd
guarantee
Joint and
Juye Liuhe
several One
Feed Co., April 30, 2021 800 April 30, 2021 38.14 None None No Yes
liability year
Ltd
guarantee
Joint and
Anqiu Liuhe
several One
Feed Co., April 30, 2021 3,000 April 30, 2021 18.09 None None No Yes
liability year
Ltd
guarantee
Laiyang Joint and
New Hope several One
April 30, 2021 500 April 30, 2021 27.05 None None No Yes
Liuhe Feed liability year
Co., Ltd guarantee
Shouguang Joint and
Liuhe several One
April 30, 2021 4,000 April 30, 2021 59.96 None None No Yes
Dingtai Feed liability year
Co., Ltd guarantee
Shenyang
Joint and
New Hope
several One
Farming April 30, 2021 500 April 30, 2021 2.01 None None No Yes
liability year
Technology
guarantee
Co., Ltd
Panjin Liuhe Joint and
Farming several One
April 30, 2021 600 April 30, 2021 31.69 None None No Yes
Co., Ltd liability year
Feed Branch guarantee
Joint and
Weifang
several One
Liuhe Feed April 30, 2021 3,000 April 30, 2021 103.51 None None No Yes
liability year
Co., Ltd
guarantee
Heze Liuhe Joint and
One
Feed Co., April 30, 2021 200 April 30, 2021 31.6 several None None No Yes
year
Ltd liability
216
2021 Semiannual Report of New Hope Liuhe Co., Ltd
guarantee
Hainan
Joint and
Dengmai
several One
New Hope April 30, 2021 3,000 April 30, 2021 756.18 None None No Yes
liability year
Farming
guarantee
Co., Ltd
Nantong Joint and
New Hope several One
April 30, 2021 500 April 30, 2021 13.28 None None No Yes
Feed Co., liability year
Ltd guarantee
Changyi
Joint and
Liuhe
several One
Xinrong April 30, 2021 1,000 April 30, 2021 0.01 None None No Yes
liability year
Feed Co.,
guarantee
Ltd
Joint and
Caoxian
several One
Liuhe Feed April 30, 2021 3,000 April 30, 2021 28.38 None None No Yes
liability year
Co., Ltd
guarantee
Qiandongna
Joint and
n New Hope
several One
Farming April 30, 2021 400 April 30, 2021 1.33 None None No Yes
liability year
Technology
guarantee
Co., Ltd
Weifang
Joint and
New Hope
several One
Liuhe Feed April 30, 2021 5,000 April 30, 2021 6.8 None None No Yes
liability year
Technology
guarantee
Co., Ltd
Changtu Joint and
Liuhe several One
April 30, 2021 500 April 30, 2021 10.08 None None No Yes
Farming liability year
Co., Ltd guarantee
Linyi New Joint and
Hope Liuhe several One
April 30, 2021 1,000 April 30, 2021 103.46 None None No Yes
Feed Co., liability year
Ltd guarantee
Joint and
Guangzhou
several One
Liuhe Feed April 30, 2021 10,000 April 30, 2021 43.72 None None No Yes
liability year
Co., Ltd
guarantee
217
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Joint and
Jiangmen
several One
Liuhe Feed April 30, 2021 10,000 April 30, 2021 125.32 None None No Yes
liability year
Co., Ltd
guarantee
Joint and
Henan Liuhe
several One
Beixu Feed April 30, 2021 3,000 April 30, 2021 8.39 None None No Yes
liability year
Co., Ltd
guarantee
Joint and
Linshu
several One
Liuhe Feed April 30, 2021 500 April 30, 2022 2.25 None None No Yes
liability year
Co., Ltd
guarantee
Taian Liuhe
Joint and
Jingwei
several One
Farming April 30, 2021 600 April 30, 2021 74.24 None None No Yes
liability year
Co., Ltd’s
guarantee
feed mill
Yinan Liuhe Joint and
Zhengzhuan several One
April 30, 2021 1,500 April 30, 2021 26.52 None None No Yes
g Feed Co., liability year
Ltd guarantee
Total amount of
guarantees to
Total guarantee amount to
subsidiaries actually
subsidiaries approved during the 292,829 799,412.36
incurred during the
reporting period (B1)
reporting period
(B2)
Total actual balance
Total guarantee amount to of guarantees to
subsidiaries approved at the end 4,875,950 subsidiaries at the 2,414,902.6
of the reporting period (B3) end of reporting
period (B4)
Guarantees provided by subsidiaries for subsidiaries
Date of
related Whether Whether
Counter
Name of announceme Date Amount performa related-pa
Guarantee Type of Guaranties guarant Guarantee
guarantee nt and actually actually nce was rty
d amount guarantee (if any) ees (if period
beneficiary disclosure of incurred guaranteed complete guarantee
any)
guaranteed d or not
amount
New Hope April 29, 4,000 April 7, 1,595.74 Joint and None None 125 days No Yes
218
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Isabela 2020 2021 several
Agriculture liability
Inc. guarantee
New Hope
Joint and
Central
April 29, April 5, several
Luzon 22,200 3,563.83 None None 155 days No Yes
2020 2021 liability
Agriculture
guarantee
Inc.
New Hope Joint and
Tarlac April 29, April 6, several
19,000 4,414.89 None None 163 days No Yes
Agriculture 2020 2021 liability
Inc. guarantee
Total amount of
Total guarantee amount to
guarantees to
subsidiaries approved
0 subsidiaries actually 9,574.46
during the reporting
incurred during the
period (C1)
reporting period (C2)
Total guarantee amount to Total actual balance of
subsidiaries approved at guarantees to
45,200 9,574.46
the end of the reporting subsidiaries at the end of
period (C3) reporting period (C4)
Total corporate guarantees (i.e., total of the top three)
Total amount of
Total amount of guarantees guarantees actually
approved during the reporting 292,829 incurred during the 808,986.82
period (A1+B1+C1) reporting period
(A2+B2+C2)
Total actual balance of
Total amount of guarantees
guarantees at the end of
approved at the end of the 4,921,150 2,424,477.06
reporting period
reporting period (A3+B3+C3)
(A4+B4+C4)
Percentage of total amount actually guaranteed
65.18%
(i.e., A4+B4+C4) in the company’s net assets
Wherein:
Balance of guarantees provided for shareholders,
0
actual controller and their related parties (D)
Balance of debt guarantees provided directly or
indirectly for the guaranteed subjects each with 1,567,204.79
asset-liability ratio of over 70% (E)
Amount of total guarantees in excess of 50% of
564,721.65
net assets (F)
219
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Total amount of the aforesaid three guarantees
2,131,926.44
(D+E+F)
Remarks on circumstances in which guarantee
liability has occurred or there is evidence that
several and joint repayment liability might be None
assumed within the reporting period for unexpired
guarantee contracts (if any)
Remarks on provision of external guarantees in
None
violation of specified procedures (if any)
Remarks on details of guarantees provided in the composite form
3. Entrusted wealth management
□ applicable √ not applicable
The company had no entrusted wealth management during the reporting period.
4. Significant contracts for daily operations
□ applicable √ not applicable
5. Other significant contracts
□ applicable √ not applicable
The company had no other significant contracts during the reporting period.
XIII: Remarks on other significant events
√ applicable □ not applicable
1. The 38th meeting of the 8th board of directors of the company and the 20th meeting of the 8th board of supe rvisors
deliberated and approved the “Proposal regarding Termination of <2021 Restricted Stock Incentive Plan (Draft)> and Related
Proposals”, whereby the company’s medium and long-term strategic objectives of growing and strengthening its pig farming business
remain unchanged, but along with the changed external environments this year, the company decided to terminate the implementa tion
of its 2021 incentive plan and continue using repurchased shares for stock incentive of its core team in the future.
2. The company received the “Approval of Public Issue of Convertible Corporate Bonds by New Hope Liuhe Co., Ltd” issued
by CSRC (CSRC Permit (2021)No. 1351), approving the company to issue convertible corporate bonds of nominal value of 8,150
million Yuan in total to the general public for a period of 6 years.
3. To increase the work efficiency and enhance strategic cooperation with major ingredient suppliers, according to the actual
needs of the purchasing business, the company gave guarantees for payment for ingredient purchase of up to 4,669.00 million Yuan
in favor of the ingredient purchase and sale contracts executed between 183 subsidiaries and 47 feed ingredient suppliers inc luding
COFCO Trade Co., Ltd within the period of authorization, accounting for 11.72% of the most recently audited (2020) 39,846.3341
million Yuan net assets of the company attributable to shareholders of the listed company. This event was deliberated and approved
by the 2020 annual general meeting of the company.
4. In light of its operational reality, the company expects that it and its majority-owned subsidiaries will provide a total of
220
2021 Semiannual Report of New Hope Liuhe Co., Ltd
84,700.0000 million Yuan joint liability warranty guarantees for its subsidiaries in 2021, accounting for 212.57% of the most recently
audited (2020) 39,846.3341 million Yuan net assets of the company attributable to shareholders of the listed company, of which the
financing guarantees provided for the company’s majority-owned subsidiaries total 80,500.0000 million Yuan (including no more
than 6.0 billion Yuan guarantees in total reserved for majority-owned subsidiaries) and the financing guarantees provided to breeding
farms(farmers) or distributors total 4,200.00 million Yuan. This event was deliberated and approved by the 2020 annual genera l
meeting of the company.
5. The company and its affiliates executed related daily purchase and sales agreements in light of actual operational needs,
whereby the company purchases meat products, farming equipment and other products from its affiliates and their s ubsidiaries for no
more than RMB 1,126.50 million Yuan in 2021 and the total amount actually incurred of the same type of transactions was 234.1 273
million Yuan in 2020; the company received services worth no more than RMB 3,277.00 million Yuan from its affiliates and their
subsidiaries, while the total amount actually incurred of the same type of transactions was 1,376.1237 million Yuan in 2020; the
company leased assets of no more than RMB 6 million Yuan from its affiliates, while the total amount actually incurred of the same
type of transactions was 3.7653 million Yuan in 2020; the company sold feeds, meat products and other products of no more tha n
RMB 506.00 million Yuan to its affiliates and their subsidiaries, while the total amount actually incurred of the same type of
transactions was 167.0083 million Yuan in 2020. This event was deliberated and approved by the 2020 annual general meeting of the
company.
6. The company completed the repurchase and cancellation formalities for stock options and restricted stocks with CSDC
Shenzhen Branch on May 18, 2021, of which cancelled stock options totaled 2,940,000 and repurchased and cancelled restricted
stocks totaled 1,237,500 shares. After completion of this repurchase and cancellation, the company’s total s hare capital changed from
4,506,448,842 shares to 4,505,211,342 shares.
7. The renewable corporate bonds (Phase 1) publicly issued by the company to professional investors in 2021 were listed for
trading on the centralized bidding system and the integrated agreement trading platform of Shenzhen Stock Exchange bilaterally on
June 8, 2021 under the bond abbreviation “21 Hope Y1” and bond code “149492” for a total issue amount of 1.0 billion Yuan,
nominal value of 100 Yuan/piece and term of 1+N, at an interest rate of 5.5%, with the value date being June 1, 2021 and listing date
being June 8, 2021.
8. Some of the company’s directors, senior executives and core employees decided to hold additional shares in the company via
centralized bidding on the securities trading system of Shenzhen Stock Exchange by establishing a contractual PE fund “Ruiyi New
Hope Growth No. 1 PE Securities Investment Fund” within 6 months of May 8, 2021. As of August 8, 2021, when the half of the
implementation time of the shareholding increase plan elapsed, the administrator of the PE fund Beijing Ruiyi Investment
Management Co., Ltd has additionally held 12,599,227 shares of the company’s stocks via the centralized bidding process of
Shenzhen Stock Exchange’s system, accounting for 0.28% of the total share capital of the company, for a total amount of
159,530,583.81 Yuan.
XIV. Significant events of the company’s subsidiaries
□ applicable √ not applicable
221
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Section 7 Changes in Shares and Information about Shareholders
I. Changes in shares
1. Changes in shares
Unit: share
Before Increase or decrease due to this change (+, -) After
Providen
Bon
New t fund
us Proportio
Amount Proportion shares converte Others Subtotal Amount
shar n
issued d into
es
shares
I. Restricted shares 182,743,215 4.06% -900,675 -900,675 181,842,540 4.04%
1. Shares held by the
state
2. Shares held by
state-owned legal persons
3. Shares held by other
182,743,215 4.06% -900,675 -900,675 181,842,540 4.04%
domestic-funded entities
Wherein: shares held
177,147,918 3.93% 177,147,918 3.93%
by domestic legal persons
Shares held by
5,595,297 0.13% -900,675 -900,675 4,694,622 0.11%
domestic natural persons
4. Shares held by
foreign capital
Wherein: shares held
by overseas legal persons
Shares held by
overseas natural persons
II. Unrestricted shares 4,323,057,766 95.94% 311,036 311,036 4,323,368,802 95.96%
1. CNY common shares 4,323,057,766 95.94% 311,036 311,036 4,323,368,802 95.96%
2. Domestically listed
foreign shares
3. Overseas listed
foreign shares
4. Others
222
2021 Semiannual Report of New Hope Liuhe Co., Ltd
III. Total shares 4,505,800,981 100.00% -589,639 -589,639 4,505,211,342 100.00%
Reasons for changes in shares
√ applicable □ not applicable
1. Other share changes were due to the company cancelling a total of 1,237,500 shares of restricted stocks already granted to 7
incentive recipients but not yet unlocked under the 2019 restricted stock and stock option incentive plan on May 18, 2021.
2. Other share changes were due to the 2019 restricted stock and stock option incentive plan of the company already entering the
first exercise period and exercise of options by incentive recipients.
Approval of changes in shares
√ applicable □ not applicable
The cancellation of the 2019 restricted stock and stock option incentive plan by the company has been deliberated and approve d
by the 19th meeting of the 8th board of directors, the 10th meeting of the 8th board of supervisors, the 28th meeting of the 8th board
of directors, the 15th meeting of the 8th board of supervisors, the 1st interim general meeting of 2020 and the 1st interim general
meeting of 2021.
Title transfer of changes in shares
√ applicable □ not applicable
China Securities Depository and Clearing Co., Ltd Shenzhen Branch completed the repurchase and cancellation formalities for
the 2019 restricted stock and stock option incentive plan of the company on May 18, 2021.
Implementation progress of share repurchase
√ applicable □ not applicable
As of June 30, 2021, the company repurchased 10,017,501 shares in the company via its repurchase -dedicated securities account
by means of centralized bidding transaction, accounting for 0.2224% of the total share capital of 4,505,211,342 shares of the
company as of June 30, 2021, with the highest transaction price of 24.15 Yuan/share and the lowest transaction price of 20.81
Yuan/share, for a total transaction amount of 229,959,017.80 Yuan (excluding transaction costs).
Implementation progress of share repurchase through reduced shareholding using the centralized competitive bidding process
□ applicable √ not applicable
Effects of share changes on the basic per-share earnings and diluted per-share earnings, per-share net assets attributable to ordinary
shareholders of the company and other financial indicators of the most recent year and the most recent period
□ applicable √ not applicable
Other contents that the company deems necessary to disclose or securities regulators require to disclose
□ applicable √ not applicable
2. Changes in restricted shares
√ applicable □ not applicable
Unit: share
Shareholder name Beginning Restricted Restricted Ending number Causes of restriction Date unlocked
223
2021 Semiannual Report of New Hope Liuhe Co., Ltd
number of shares shares of restricted on sales
restricted shares unlocked in increased in shares
the current the current
period period
New Hope Group Private placement of
79,716,563 0 0 79,716,563 April 28, 2022
Co., Ltd shares
South Hope
Private placement of
Industrial Co., 97,431,355 0 0 97,431,355 April 28, 2022
shares
Ltd
Unlocked in installments
according to Shenzhen
Locked shares of
Liu Chang 1,616,588 0 0 1,616,588 Stock Exchange’s rules and
senior executives
incumbency of senior
executives
Unlocked in installments
according to Shenzhen
Locked shares of
Liu Yonghao 669,240 0 0 669,240 Stock Exchange’s rules and
senior executives
incumbency of senior
executives
Unlocked in installments
according to Shenzhen
Locked shares of
Wang Hang 45,000 0 0 45,000 Stock Exchange’s rules and
senior executives
incumbency of senior
executives
Unlocked in installments
according to Shenzhen
Locked shares of
Cai Manli 7,500 0 0 7,500 Stock Exchange’s rules and
senior executives
incumbency of senior
executives
Unlocked in installments
according to Shenzhen
Locked shares of
Han Jitao 196,000 147,250 0 48,750 Stock Exchange’s rules and
senior executives
incumbency of senior
executives
Unlocked in installments
according to Shenzhen
Locked shares of
Zhu Liqiang 65,624 0 1 65,625 Stock Exchange’s rules and
senior executives
incumbency of senior
executives
Unlocked in installments
Restricted shares of
Deng Cheng 765,000 765,000 0 0 according to Shenzhen
equity incentives
Stock Exchange’s rules and
224
2021 Semiannual Report of New Hope Liuhe Co., Ltd
incumbency of senior
executives
Unlocked in installments
according to Shenzhen
Restricted shares of
Tao Yuling 168,750 0 0 168,750 Stock Exchange’s rules and
equity incentives
incumbency of senior
executives
Unlocked in installments
according to Shenzhen
Restricted shares of
Ji Chongxing 168,750 0 196,875 365,625 Stock Exchange’s rules and
equity incentives
incumbency of senior
executives
Unlocked in installments
according to Shenzhen
Restricted shares of
Wang Weiyong 180,000 138,750 0 41,250 Stock Exchange’s rules and
equity incentives
incumbency of senior
executives
Unlocked in installments
according to Shenzhen
Restricted shares of
Wang Shuhua 231,595 0 32,199 263,794 Stock Exchange’s rules and
equity incentives
incumbency of senior
executives
Unlocked in installments
according to Shenzhen
Restricted shares of
Hu Ji 210,000 0 45,000 255,000 Stock Exchange’s rules and
equity incentives
incumbency of senior
executives
Unlocked in four
Restricted shares of installments according to
Yan Zhichun 168,750 0 0 168,750
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of installments according to
Wang Jianmin 67,500 0 0 67,500
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of installments according to
Wan Fang 33,750 0 0 33,750
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of
Sun Laifeng 67,500 0 0 67,500 installments according to
equity incentives
the company’s performance
225
2021 Semiannual Report of New Hope Liuhe Co., Ltd
target completion
Unlocked in four
Restricted shares of installments according to
Ma Zhenqiang 90,000 0 0 90,000
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of installments according to
Lv Tongli 78,750 78,750 0 0
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of installments according to
Liu Lei 135,000 0 0 135,000
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of installments according to
Gong Huazhong 56,250 0 0 56,250
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of installments according to
Bai Xubo 90,000 0 0 90,000
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of installments according to
Yongjian 90,000 0 0 90,000
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of installments according to
Huang Yakuan 56,250 0 0 56,250
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of installments according to
Zhu Liqiang 56,250 0 0 56,250
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of installments according to
Zhou Guilian 45,000 0 0 45,000
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of installments according to
Zhang Zao 45,000 45,000 0 0
equity incentives the company’s performance
target completion
226
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Unlocked in four
Restricted shares of installments according to
Tang Yong 33,750 0 0 33,750
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of installments according to
Liu Huaiwei 90,000 0 0 90,000
equity incentives the company’s performance
target completion
Unlocked in four
Restricted shares of installments according to
Feng Xiaohui 67,500 0 0 67,500
equity incentives the company’s performance
target completion
Total 182,743,215 1,174,750 274,075 181,842,540 -- --
II. Issuance and listing of securities
√ applicable □ not applicable
Name of Issue Quantities Date of
stock and its price (or Quantities approved for trading Date
Date issued Date listed Disclosure index
derivative interest issued listing and terminatio disclosed
securities rate) trading n
Stock
Convertible corporate bonds, convertible corporate bonds for separate trading, corporate debts
As detailed in the
“Announcement of Results
of Public Issue of
Renewable Corporate Bonds
(Phase 1) by the Company
to Professional Investors in
2021” and “Announcement
100 of Listing on Shenzhen
21 Hope Y1 May 28, June 8, June 1, June 7,
Yuan/piec 10,000,000 10,000,000 Stock Exchange of
(149492) 2021 2021 2022 2021
e Renewable Corporate Bonds
(Phase 1) Publicly Issued by
the Company to
Professional Investors in
2021” published by the
company on on June 1
and June 7 of 2021
respectively.
Other derivative securities
Remarks on issue of securities within the reporting period
227
2021 Semiannual Report of New Hope Liuhe Co., Ltd
1. The renewable corporate bonds (Phase 1) publicly issued by the company to professional investors in 2021 were listed for
trading on the centralized bidding system and the integrated agreement trading platform of Shenzhen Stock Exchange bilaterally on
June 8, 2021 under the bond abbreviation “21 Hope Y1” and bond code “149492” for a total issue amount of 1.0 billion Yuan,
nominal value of 100 Yuan/piece and term of 1+N, at an interest rate of 5.5%, with the value date being June 1, 2021 and listing date
being June 8, 2021.
2. Use of raised funds
As of June 30, 2021, the funds raised by corporate bonds of the present phase were used up. All funds raised by the company
through issue of corporate bonds were used according to the prospectus without any change. The operation of the account earma rked
for raised funds was normal, and the use of raised funds was consistent with the purpose promised in the prospectus, utilization plan
and other agreements.
3. The 21 Hope Y1 has a basic term of 1 year and treats each one interest-bearing year as 1 cycle, attached with renewable option,
right of deferred interest payment and redemption option of the company, with no special terms executed within the reporting period.
According to Enterprise Accounting Standard No. 37—Presentation of Financial Instruments (Caikuai [2017]No. 14) and other
provisions, the company classified the bonds of the present phase as equity instruments.
III. Number of shareholders of the company and their shareholdings
Unit: share
Total number of preferred
Total number of ordinary shareholders with resumed
shareholders at the end of the 265,336 voting power at the end of the 0
reporting period reporting period (if any)(See
Note 8)
Shareholders each holding over 5% shares or shareholdings of the top 10 shareholders
Number of Increase or Pledges or
Number of Number of
ordinary shares decrease freezes
Name of Nature of Shareholdi restricted unrestricted
held at the end within the Am
Shareholder shareholder ng ratio ordinary ordinary shares Share
of the reporting reporting oun
shares held held Status
period period t
Domestic
South Hope
non-state-owned 29.50% 1,328,957,185 0 97,431,355 1,231,525,830
Industrial Co., Ltd
business entity
Domestic
New Hope Group
non-state-owned 25.08% 1,129,879,692 0 79,716,563 1,050,163,129
Co., Ltd
business entity
China Securities Domestic
Finance non-state-owned 2.79% 125,602,591 0 0 125,602,591
Corporation Ltd business entity
Hong Kong
Overseas business
Securities 2.38% 107,010,693 -13,712,696 0 107,010,693
entity
Clearing Co., Ltd
Tibet Strong Domestic 2.33% 104,769,426 0 0 104,769,426
228
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Investment non-state-owned
Consulting Co., business entity
Ltd
Tibet Shancheng
Domestic
Investment
non-state-owned 2.08% 93,704,034 0 0 93,704,034
Consulting Co.,
business entity
Ltd
The
repurchase-dedicat
Domestic
ed securities
non-state-owned 1.55% 69,645,498 33,840,585 0 69,645,498
account of New
business entity
Hope Liuhe Co.,
Ltd
Lhasa
Domestic
Development Area
non-state-owned 1.20% 53,893,592 -841,700 0 53,893,592
Hezhiwang
business entity
Industrial Co., Ltd
Central Huijin State-owned
0.92% 41,319,400 0 0 41,319,400
Investment Ltd business entity
Domestic natural
Lai Dajian 0.49% 22,116,755 -21,387,004 0 22,116,755
person
New Hope Group is the controlling shareholder of South Hope, and both parties are
Remarks on related-party relationships
persons acting in concert to each other. Apart from that, the company is not aware of
among the aforesaid shareholders or
whether its top ten shareholders have other related-party relationships or actions in
actions in concert
concert.
Remarks on aforesaid shareholders
involved in delegation/trusteeship of None
voting rights and waiver of voting rights
Shareholdings of top 10 unrestricted ordinary shareholders.
Number of unrestricted ordinary shares Types of shares
Shareholder name
held at the end of the reporting period Types of shares Amount
RMB ordinary
South Hope Industrial Co., Ltd 1,231,525,830 1,231,525,830
shares
RMB ordinary
New Hope Group Co., Ltd 1,050,163,129 1,050,163,129
shares
RMB ordinary
China Securities Finance Corporation Ltd 125,602,591 125,602,591
shares
RMB ordinary
Hong Kong Securities Clearing Co., Ltd 107,010,693 107,010,693
shares
Tibet Strong Investment Consulting Co., Ltd 104,769,426 RMB ordinary 104,769,426
229
2021 Semiannual Report of New Hope Liuhe Co., Ltd
shares
RMB ordinary
Tibet Shancheng Investment Consulting Co., Ltd 93,704,034 93,704,034
shares
The repurchase-dedicated securities account of New RMB ordinary
69,645,498 69,645,498
Hope Liuhe Co., Ltd shares
Lhasa Development Area Hezhiwang Industrial RMB ordinary
53,893,592 53,893,592
Co., Ltd shares
RMB ordinary
Central Huijin Investment Ltd 41,319,400 41,319,400
shares
RMB ordinary
Lai Dajian 22,116,755 22,116,755
shares
Remarks on related-party relationships or actions in
New Hope Group is the controlling shareholder of South Hope, and both
concert among the top 10 unrestricted ordinary
parties are persons acting in concert to each other. Apart from that, the
shareholders and between top 10 unrestricted
company is not aware of whether its top ten shareholders have other
ordinary shareholders and top 10 ordinary
related-party relationships or actions in concert.
shareholders.
Whether the top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders of the company conducted agreed repurc hase
transactions within the reporting period
□ yes √ no
The top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders of the company did not conduct any agreed
repurchase transactions within the reporting period
IV. Changes in shareholdings of directors, supervisors and senior managers
√ applicable □ not applicable
Number of
Number of
Number of restricted
additional Number of Number of
Beginning held shares Ending stocks
Status of shares held restricted restricted
number of reduced in number of granted at
Name Position incumben in the stocks granted stocks granted
shares held the current shares held the
cy current in this period at the end of
(shares) period (shares) beginning of
period (shares) period (shares)
(shares) period
(shares)
(shares)
Ji Vice Incumbe
225,000 262,500 0 487,500 0 0 0
Chongxing president nt
Vice
Wang Out of
president, 308,794 90,000 135,000 263,794 0 0 0
Shuhua office
CFO
Board Out of
Hu Ji 280,000 110,000 135,000 255,000 0 0 0
secretary office
230
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Total -- -- 813,794 462,500 270,000 1,006,294 0 0 0
V. Changes of controlling shareholders or actual controllers
Changes in controlling shareholders during the reporting period
□ applicable √ not applicable
The controlling shareholders of the company did not change during the reporting period.
Changes in actual controller during the reporting period
□ applicable √ not applicable
The actual controller of the company did not change during the reporting period.
231
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Section 8 Details related to Preferred Shares
□ applicable √ not applicable
The company had no preferred shares during the reporting period.
232
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Section 9 Details related to Corporate Bonds
√ applicable □ not applicable
I. Enterprise bonds
□ applicable √ not applicable
The company had no enterprise bonds in the reporting period.
II. Corporate bonds
√ applicable □ not applicable
1. Basic information about corporate bonds
Method
of
Bond principal
Maturity Interes Trading
Bond name abbreviati Bond code Issue date Value date Balance of bonds repayme
date t rate place
on nt and
interest
payment
Public issue of Lump
renewable corporate sum
bonds by New Hope repayme
21 Hope May 28, June 1,
Liuhe Co., Ltd to 149492 June 1, 2021 1,000,000,000.00 5.5% nt of SZSE
Y1 2021 2022
professional principal
investors in 2021 and
(Phase 1) (Variety 1) interest
Failure to repay bonds beyond the due date
□ applicable √ not applicable
2. Triggering and execution of issuer or investor option clauses and investor protection clauses
□ applicable √ not applicable
3. Adjustments to credit rating results during the reporting period
□ applicable √ not applicable
233
2021 Semiannual Report of New Hope Liuhe Co., Ltd
4. Guarantees, execution and change of debt repayment plans and other debt repayment safeguards within
the reporting period and their effects on rights and interests of bond investors
□ applicable √ not applicable
III. Debt financing instrume nts of non-financial enterprises
□ applicable √ not applicable
The company had no debt financing instruments of non-financial enterprises in the reporting period.
IV. Convertible corporate bonds
√ applicable □ not applicable
1. Historical adjustments to conversion price
The initial conversion price of the convertible corporate bonds issued by the company (bond abbreviation: Hope Convertible
Bonds, bond code: 127015) is 19.78 Yuan per share, and due to implementation of the 2019 equity distribution scheme by the
company, the conversion price of convertible corporate bonds was adjusted from 19.78 Yuan per share to 19.63 Yuan per share a s of
June 19, 2020.
As the company privately issued RMB ordinary shares to South Hope and New Hope Group and add itional shares were listed
for trading on Shenzhen Stock Exchange on October 29, 2020, the conversion price of the company’s convertible corporate bonds
was adjusted from 19.63 Yuan/share to 19.75 Yuan/share as of October 29, 2020.
2. Accumulated conversion into shares
√ applicable □ not applicable
Ratio of Ratio
Abbr number of of
eviat shares amount
ion Accumulate converted to of
Amount of
of Start and end date Total issued Accumulated d number of total amount outstan
outstanding
conv of conversion into quantity Total issue amount amount of shares of issued ding
conversion
ertib shares (pieces) conversion (Yuan) converted(sh shares of the convers
(Yuan)
le ares) company ion to
bond prior to start total
s date of issue
conversion amount
Hop
e July 9,
Con 2020-January 2, 40,000,000 4,000,000,000.00 3,049,985,500.00 155,105,019 3.68% 950,014,500.00 23.75%
verti 2026
ble
234
2021 Semiannual Report of New Hope Liuhe Co., Ltd
Bon
ds
3. Details of top 10 convertible bond holders
Unit: share
Nature of Number of convertible Amount of convertible Percentage of
Name of convertible corporate convertible corporate bonds held corporate bonds held convertible corporate
No.
bond holder corporate bond at the end of reporting at the end of reporting bonds held at the end
holder period (pieces) period (Yuan) of reporting period
MERRILL LYNCH Overseas business
1 599,991 65,399,019.00 6.32%
INTERNATIONAL entity
Taiping Pension Co.,
Ltd—Taiping Jinshi
2 Others 436,086 47,533,374.00 4.59%
Bond-type Investment
Portfolio
Overseas business
3 UBS AG 290,851 31,702,759.00 3.06%
entity
State-owned
4 Guosen Securities Co., Ltd 250,000 27,250,000.00 2.63%
business entity
Fullgoal Fuyi Aggressive
5 Fixed-income Pension Others 249,558 27,201,822.00 2.63%
Product——ICBC
BNP Paribas—self-owned Overseas business
6 220,000 23,980,000.00 2.32%
funds entity
Generali China Life Insurance
7 Co., Ltd—dividends—group Others 201,597 21,974,073.00 2.12%
annuity
Kunlun Health Insurance Co.,
8 Ltd—traditional insurance Others 200,000 21,800,000.00 2.11%
product 1
Domestic
Generali China Life Insurance
9 non-state-owned 199,998 21,799,782.00 2.11%
Co., Ltd
business entity
BoCom-Schroders
fund-ICBC-
BoCom-Schroders—Bank of
10 Others 194,919 21,246,171.00 2.05%
Communications—value-adde
d No. 3 asset management
plan
235
2021 Semiannual Report of New Hope Liuhe Co., Ltd
4. Significant changes in profitability, asset condition and credit standing of guarantors
□ applicable √ not applicable
5. Liabilities, creditability changes and cash arrangement for debt service in the next five years of the
company at the end of the reporting period
V. Losses within the scope of consolidated statements in excess of 10% of net assets as at the
end of the previous year within the reporting period
□ applicable √ not applicable
VI. Key accounting data and financial indicators of the company in the past two years as of
the end of the reporting period
Unit: 10,000 Yuan
Increase or decrease at the end
of this reporting period
Item The end of this reporting period The end of the previous year
compared with the end of the
previous year
Current ratio 94.75% 91.03% 3.72%
Asset-liability ratio 62.93% 53.06% 9.87%
Quick ratio 46.32% 41.99% 4.33%
Increase or decrease in this
The corresponding period of the reporting period compared with
This reporting period
previous year the corresponding period of
previous yea
Profits net of non-recurring
-180,771.03 394,402.72 -145.83%
profit and loss
EBITDA-total debt ratio 1.32% 13.82% -12.50%
Interest coverage ratio -2.55 7.02 -136.32%
Cash interest coverage ratio -4.41 1.83 -340.98%
EBITDA interest coverage ratio 0.76 9.92 -92.34%
Loan repayment rate 100.00% 100.00%
Interest coverage 100.00% 100.00%
236
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Section 10 Financial Report
I. Auditor’s report
Whether the semiannual report has been audited
□ yes √ no
The company’s semiannual financial report was not audited.
II. Financial statements
The monetary unit in notes to financial statements is RMB Yuan.
1. Consolidated balance sheet
Prepared by: New Hope Liuhe Co., Ltd
June 30, 2021
Unit: Yuan
Item June 30, 2021 December 31, 2020
Current assets:
Cash at bank and on hand 11,674,800,886.30 8,799,264,356.20
Settlement reserve
Loans to other banks
Held-for-trading financial assets 22,076,125.34 2,196,760.08
Derivative financial assets
Notes receivable 63,506,880.25 25,116,000.00
Accounts receivable 1,504,568,263.46 865,340,970.83
Receivables financing
Prepayments 4,746,432,723.89 3,146,703,624.53
Insurance premiums receivable
Reinsurance amounts receivable
Provision of cession receivable
Other receivables 639,060,010.62 464,350,467.03
Wherein: interest receivable 46,994,199.68 28,841,237.06
Dividends receivable 84,105,000.00
Financial assets purchased for resale
Inventories 19,654,525,975.42 15,649,735,402.26
237
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Contract assets
Assets held for sale
Noncurrent assets due within one year
Other current assets 146,123,191.10 101,034,046.15
Total current assets 38,451,094,056.38 29,053,741,627.08
Non-current assets
Loans and advances made
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 23,538,638,058.14 22,702,080,340.55
Other equity instrument investments 320,276,827.48 320,276,827.48
Other noncurrent financial assets
Investment properties 174,306,520.36 364,645.04
Fixed assets 32,537,004,193.25 28,861,009,355.16
Construction in progress 15,962,053,442.98 11,006,466,489.26
Productive biological assets 9,722,917,996.68 11,797,596,610.49
Oil & gas assets
Right-of-use assets 6,324,700,984.83
Intangible assets 1,741,773,293.45 1,552,519,664.88
Development expenditure
Goodwill 1,234,756,072.93 1,234,756,072.93
Long-term unamortized expenses 431,258,224.10 1,057,479,934.91
Deferred income tax assets 298,578,055.20 315,540,930.34
Other noncurrent assets 1,650,527,056.50 1,541,633,064.03
Total non-current assets 93,936,790,725.90 80,389,723,935.07
Total assets 132,387,884,782.28 109,443,465,562.15
Current liabilities:
Short-term borrowings 19,010,984,011.32 10,399,072,204.60
Borrowings from central bank
Loans from other banks
Held-for-trading financial liabilities 17,137,307.83 16,850,229.73
The derivative financial liabilities
Notes payable 1,354,503,485.26 1,884,106,201.82
238
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Accounts payable 8,507,158,233.35 8,215,467,451.85
Advance receipts
Contract liabilities 2,248,863,709.87 2,285,698,452.30
Financial assets sold for repurchase
Deposits taken and interbank deposits
Proceeds from vicariously traded securities
Proceeds from vicariously underwritten securities
Payroll payable 1,314,117,992.83 1,265,148,482.17
Taxes and dues payable 259,793,094.23 244,404,612.93
Other payables 3,644,130,849.46 4,515,294,643.20
Wherein: interest payable
Dividends payable 76,787,941.75 76,703,390.04
Handling fee and commission payable
Cession insurance premiums payable
Liabilities held for sale
Noncurrent liabilities due within one year 4,163,885,409.75 2,051,926,912.84
Other current liabilities 60,529,747.86 1,040,287,446.72
Total current liabilities 40,581,103,841.76 31,918,256,638.16
Non-current liabilities
Provision for insurance contracts 175,922,283.65 153,364,872.70
Long-term borrowings 32,294,983,344.43 22,901,808,635.67
Bonds payable 4,824,241,306.54 2,808,543,708.55
Wherein: preferred shares
Perpetual bonds
Lease liabilities 5,113,375,251.89
Long-term payables
Long-term payable payroll
Estimated liabilities
Deferred income 311,101,483.17 275,540,610.92
Deferred income tax liabilities 14,182,323.98 14,999,095.91
Other noncurrent liabilities
Total non-current liabilities 42,733,805,993.66 26,154,256,923.75
Total liabilities 83,314,909,835.42 58,072,513,561.91
Ownership interest:
239
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Share capital 4,505,211,342.00 4,505,800,981.00
Other equity instruments 3,751,061,036.00 1,991,904,960.44
Wherein: preferred shares
Perpetual bonds 3,559,200,000.00 1,800,000,000.00
Capital reserve 9,756,250,994.47 9,750,908,624.64
Minus: treasury shares 1,205,333,599.66 370,970,103.39
Other comprehensive income -450,603,995.66 -343,891,820.87
Special reserve
Surplus reserve 3,093,515,491.69 3,093,735,140.45
Generic risk reserve
Undistributed profits 17,745,006,850.51 21,218,846,353.41
Total ownership interest attributable to the parent company 37,195,108,119.35 39,846,334,135.68
Minority interest 11,877,866,827.51 11,524,617,864.56
Total ownership interest 49,072,974,946.86 51,370,952,000.24
Total liabilities and ownership interest 132,387,884,782.28 109,443,465,562.15
Legal representative: Liu Chang Chief accountant: Chen Xingyao Person in charge of accounting organization: Chen Jing
2. Balance sheet of parent company
Unit: Yuan
Item June 30, 2021 December 31, 2020
Current assets:
Cash at bank and on hand 7,744,154,590.56 5,123,092,679.56
Held-for-trading financial assets
Derivative financial assets
Notes receivable 19,200,000.00 43,077,270.81
Accounts receivable 96,726.07
Receivables financing
Prepayments 12,867,064.18 11,093,569.12
Other receivables 64,655,972,743.37 54,606,184,474.17
Wherein: interest receivable 86,454,675.83 71,966,472.48
Dividends receivable 477,722,349.82 5,576,107.23
Inventories 52,794,366.40 35,515,147.51
Contract assets
Assets held for sale
240
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Noncurrent assets due within one year
Other current assets 7,034,726.60 3,214,791.70
Total current assets 72,492,120,217.18 59,822,177,932.87
Non-current assets
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 13,605,957,596.25 13,117,654,076.31
Other equity instrument investments 211,196,000.00 211,196,000.00
Other noncurrent financial assets
Investment properties
Fixed assets 20,653,780.02 22,125,177.47
Construction in progress 108,900.00
Productive biological assets
Oil & gas assets
Right-of-use assets 5,067,478.02
Intangible assets 7,654,831.51 12,096,017.06
Development expenditure
Goodwill
Long-term unamortized expenses 3,620,078.20 3,759,720.34
Deferred income tax assets 2,243,745.16 1,748,966.24
Other noncurrent assets 5,333,806.05 2,225,896.11
Total non-current assets 13,861,727,315.21 13,370,914,753.53
Total assets 86,353,847,532.39 73,193,092,686.40
Current liabilities:
Short-term borrowings 6,905,583,823.43 1,233,424,669.48
Held-for-trading financial liabilities
The derivative financial liabilities
Notes payable 188,492,364.39 157,626,966.22
Accounts payable 55,954,595.60 31,457,471.61
Advance receipts
Contract liabilities 20,878,220.98 26,344,234.44
Payroll payable 32,832,923.30 42,181,388.07
Taxes and dues payable 9,284,518.80 8,566,076.27
241
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Other payables 41,725,427,860.91 39,157,548,434.66
Wherein: interest payable
Dividends payable
Liabilities held for sale
Non-current liabilities due within one year 594,099,979.51 346,679,721.05
Other current liabilities 1,013,537,500.00
Total current liabilities 49,532,554,286.92 42,017,366,461.80
Non-current liabilities
Long-term borrowings 9,536,333,553.94 7,369,143,966.60
Bonds payable 4,824,241,306.54 2,808,543,708.55
Wherein: preferred shares
Perpetual bonds
Lease liabilities 5,140,718.21
Long-term payables
Long-term payable payroll
Estimated liabilities
Deferred income 5,308,949.49 2,584,397.24
Deferred income tax liabilities
Other noncurrent liabilities
Total non-current liabilities 14,371,024,528.18 10,180,272,072.39
Total liabilities 63,903,578,815.10 52,197,638,534.19
Ownership interest:
Share capital 4,505,211,342.00 4,505,800,981.00
Other equity instruments 3,751,061,036.00 1,991,904,960.44
Wherein: preferred shares
Perpetual bonds 3,559,200,000.00 1,800,000,000.00
Capital reserve 11,295,467,044.76 11,290,480,329.87
Minus: treasury shares 1,205,333,599.66 370,970,103.39
Other comprehensive income
Special reserve
Surplus reserve 1,050,790,016.75 1,050,790,016.75
Undistributed profits 3,053,072,877.44 2,527,447,967.54
Total ownership interest 22,450,268,717.29 20,995,454,152.21
Total liabilities and ownership interest 86,353,847,532.39 73,193,092,686.40
242
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
3. Consolidated income statement
Unit: Yuan
Item Half of 2021 Half of 2020
I. Total business revenue 61,518,574,560.67 44,696,040,364.08
Wherein: business revenue 61,518,574,560.67 44,696,040,364.08
Interest revenue
Earned premiums
Revenue from handling fee and commission
II. Total operating costs 63,157,087,165.54 41,771,921,545.32
Wherein: operating cost 59,181,012,728.29 38,883,226,717.75
Interest expenditure
Expenditure on handling fee and commission
Surrender value
Net indemnities paid
Net insurance liability reserve accrued 14,883,920.78 9,814,421.35
Policy dividend payout
Reinsurance costs
Taxes and surcharges 103,141,924.10 77,628,934.48
Selling expenses 886,165,806.70 645,291,464.41
Management expenses 2,071,241,942.81 1,620,715,240.33
R&D expenses 147,076,799.89 103,889,170.64
Financial expenses 753,564,042.97 431,355,596.36
Wherein: interest expense 807,823,061.58 507,683,759.99
Interest revenue 70,004,378.51 87,768,232.59
Plus: other income 107,232,509.12 66,064,040.01
Investment income (loss to be denoted by ‘-“) 1,176,596,066.35 1,241,206,487.88
Wherein: income on investment in affiliates and joint
1,176,426,216.33 1,247,082,435.86
ventures
Income from de-recognition of financial assets
measured at amortized cost
Exchange gains (losses to be denoted by “-”)
Income on net exposure hedging (loss to be denoted by
“-“)
Income from change in fair value (loss to be denoted
-11,086,791.11 -4,111,949.63
by”-“)
243
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Credit impairment loss (loss to be denoted by “-“) -77,108,559.38 -47,300,672.93
Asset impairment loss (loss to be denoted by “-‘) -1,002,396,508.13 -2,555,550.61
Income from asset disposal (loss to be denoted by “-“) 22,936,727.98 -65,147,148.15
III. Operating profits (losses to be denoted by “-“) -1,422,339,160.04 4,112,274,025.33
Plus: non-business revenue 53,491,540.63 31,392,988.99
Minus: non-business expenditure 1,330,740,961.06 143,494,162.87
IV. Total profits (total losses to be denoted by “-“) -2,699,588,580.47 4,000,172,851.45
Minus: income tax expense 255,813,436.08 171,269,538.95
V. Net profits (net losses to be denoted by “-“) -2,955,402,016.55 3,828,903,312.50
(I) Classification by operational continuity
1. Net profits from continuous operations (net losses to be
-2,955,402,016.55 3,828,903,312.50
denoted by”-“)
2. Net profits from discontinued operations(net losses to be
denoted by “-“)
(II) Classification by attribution of ownership
1. Net profits attributable to owners of the parent company -3,415,066,136.23 3,163,865,460.00
2. Minority interest income 459,664,119.68 665,037,852.50
VI. After-tax net amount of other comprehensive income -100,184,166.73 -129,146,135.97
After-tax net amount of other comprehensive income
-106,712,174.79 -111,071,172.02
attributable to the owners of the parent company
(I) Other comprehensive income that can not be reclassified
31,319.25 -782,981.25
to profit and loss
1. Change in defined benefit plan re-measured
2. Other comprehensive income that cannot be
31,319.25 -782,981.25
transferred to profit and loss under the equity method
3. Change in fair value of other equity instrument
investments
4. Change in fair value of credit risk to the company
5. Others
(II) Other comprehensive income that will be reclassified to
-106,743,494.04 -110,288,190.77
profit and loss
1. Other comprehensive income that can be
19,793,766.00 -54,057,025.50
transferred to profit and loss under the equity method
2. Change in fair value of other debt investments
3. Amount charged to other comprehensive income
due to reclassification of financial assets
244
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
4. Provision for credit impairment of other debt
investments
5. Cash flow hedging reserve
6. Foreign-currency statement translation difference -126,537,260.04 -56,231,165.27
7. Others
After-tax net other comprehensive income attributable to
6,528,008.06 -18,074,963.95
minority shareholders
VII. Total comprehensive income -3,055,586,183.28 3,699,757,176.53
Total comprehensive income attributable to owners of the
-3,521,778,311.02 3,052,794,287.98
parent company
Total comprehensive income attributable to minority
466,192,127.74 646,962,888.55
shareholders
VIII: Per share earnings
(I) Basic earnings per share -0.79 0.76
(II) Diluted earnings per share -0.78 0.75
In case of business combination under the common control during this period, the net profits realized by the combined party before
consolidation is: 0.00 Yuan, and the net profits realized by the combined party in the previous period is: 0.00 Yuan.
Legal representative: Liu Chang Chief accountant: Chen Xingyao Person in charge of accounting organization: Chen Jing
4. Parent company income statement
Unit: Yuan
Item Half of 2021 Half of 2020
I. Business revenue 497,555,575.60 284,485,978.83
Minus: operating cost 453,734,521.08 249,155,615.35
Taxes and surcharges 2,125,933.08 736,299.66
Selling expenses 6,737,541.98 5,173,218.48
Management expenses 82,701,580.63 168,994,714.72
R&D expenses 8,229,789.43 16,803,897.34
Financial expenses 192,794,718.90 -149,365,131.82
Wherein: interest expense 433,399,916.22 313,373,642.96
Interest revenue 240,305,921.72 461,960,747.22
Plus: other income 610,204.71 5,858,671.98
Investment income (loss to be denoted by ‘-“) 839,138,169.59 182,577,738.71
Wherein: income on investment in affiliates and joint
12,876,319.94 24,654,489.98
ventures
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Income from de-recognition of financial assets
measured at amortized cost (loss to be denoted by “-“)
Income on net exposure hedging (loss to be denoted by
“-“)
Income from change in fair value (loss to be denoted
by”-“)
Credit impairment loss (loss to be denoted by “-“) -9,443,841.52 -925,870.77
Asset impairment loss (loss to be denoted by “-‘)
Income from asset disposal (loss to be denoted by “-“) 93.39 -216.02
II. Operating profits (losses to be denoted by “-“) 581,536,116.67 180,497,689.00
Plus: non-business revenue 2,409,139.47 2,325,436.68
Minus: non-business expenditure 28,788.07 816.89
III. Total profits (total losses to be denoted by “-“) 583,916,468.07 182,822,308.79
Minus: income tax expense -481,808.50 549,654.12
IV. Net profits (net losses to be denoted by “-“) 584,398,276.57 182,272,654.67
(I) Net profits from continuous operations (net losses to be
584,398,276.57 182,272,654.67
denoted by”-“)
(II) Net profits from discontinued operations (net losses to
be denoted by”-“)
V. After-tax net amount of other comprehensive income
(I) Other comprehensive income that can not be reclassified
to profit and loss
1. Change in defined benefit plan re-measured
2. Other comprehensive income that cannot be
transferred to profit and loss under the equity method
3. Change in fair value of other equity instrument
investments
4. Change in fair value of credit risk to the company
5. Others
(II) Other comprehensive income that will be reclassified to
profit and loss
1. Other comprehensive income that can be
transferred to profit and loss under the equity method
2. Change in fair value of other debt investments
3. Amount charged to other comprehensive income
due to reclassification of financial assets
4. Provision for credit impairment of other debt
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
investments
5. Cash flow hedging reserve
6. Foreign-currency statement translation difference
7. Others
VI. Total comprehensive income 584,398,276.57 182,272,654.67
VII. Per share earnings
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: Yuan
Item Half of 2021 Half of 2020
I. Cash flows from operating activities:
Cash received from sale of commodities and provision of
61,888,098,037.93 45,329,036,181.56
service
Net increase in deposits from customers and interbank
deposits
Net increase in borrowings from central bank
Net increase in loans from other financial institutions
Cash received from receipt of original insurance contract
premiums
Net cash received from reinsurance business
Net increase in deposits and investments from the insured
Cash from interest, handling fee and commission charged
Net increase in loans from other banks
Net increase in funds for repurchase
Net cash received from vicariously traded securities
Tax rebates received 32,105,332.50 29,179,104.82
Other cash received in connection with operating activities 617,898,250.98 725,775,233.35
Subtotal of cash inflows from operating activities 62,538,101,621.41 46,083,990,519.73
Cash paid for purchase of goods and receipt of service 60,182,030,270.74 40,634,105,423.94
Net increase in loans and advances from customers
Net increase in deposits with central bank and other banks
Cash paid for indemnities under original insurance contracts
Net increase in loans to other banks
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Cash paid for interest, handling fee and commission
Cash paid for policy dividends
Cash paid to and for employees 4,883,177,881.13 3,068,738,990.00
Taxes paid 450,248,536.66 315,401,702.58
Other cash paid in connection with operating activities 1,619,251,618.62 1,407,151,071.63
Subtotal of cash outflows from operating activities 67,134,708,307.15 45,425,397,188.15
Net cash flows from operating activities -4,596,606,685.74 658,593,331.58
II. Cash flows from investing activities
Cash received from recovery of investments 30,753,951.98 19,765,145.61
Cash received from acquisition of investment income 396,108,100.45 1,294,750.00
Net cash recovered from disposal of fixed assets, intangible
108,644,341.05 372,391,578.95
assets and other long-term assets.
Net cash received from disposal of subsidiaries and other
5,680,493.78 464,772.11
business units
Other cash received in connection with investing activities 10,983,654.00 3,315,588.35
Subtotal of cash inflows from investing activities 552,170,541.26 397,231,835.02
Cash paid for acquisition of fixed assets, intangible assets
10,378,327,709.81 15,013,815,473.41
and other long-term assets
Cash paid for investments 147,993,299.49 780,363,704.39
Net increase in pledge loans
Net cash paid for acquisition of subsidiaries and other
416,224,153.56 127,324,201.48
business units
Other cash paid in connection with investing activities 68,975,593.13 43,097,745.92
Subtotal of cash outflows from investing activities 11,011,520,755.99 15,964,601,125.20
Net cash flows from investing activities -10,459,350,214.73 -15,567,369,290.18
III. Cash flows from financing activities:
Cash received from acquisition of investments 1,914,190,000.00 1,046,000,000.00
Wherein: cash received from acquisition of minority
154,990,000.00 1,046,000,000.00
shareholder investments in subsidiaries
Cash received from acquisition of borrowings 34,681,300,861.29 26,230,324,172.97
Other cash received in connection with financing activities 1,997,600,000.00 8,285,150,000.00
Subtotal of cash inflows from financing activities 38,593,090,861.29 35,561,474,172.97
Cash paid for repayment of debts 17,314,234,618.74 15,076,919,008.18
Cash paid for distribution of dividends and profits or
1,213,233,167.43 1,233,794,141.66
payment of interest
Wherein: dividends and profits paid by subsidiaries to 165,388,299.18 168,099,420.96
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
minority shareholders
Other cash paid in connection with financing activities 2,149,205,742.40 18,060,256.83
Subtotal of cash outflows from financing activities 20,676,673,528.57 16,328,773,406.67
Net cash flows from financing activities 17,916,417,332.72 19,232,700,766.30
IV. Effect of exchange rate fluctuation on cash and cash
-20,848,279.59 -698,264.39
equivalents
V. Net increase in cash and cash equivalents 2,839,612,152.66 4,323,226,543.31
Plus: beginning balance of cash and cash equivalents 8,509,218,898.56 5,692,332,240.91
VI. Ending balance of cash and cash equivalents 11,348,831,051.22 10,015,558,784.22
6. Parent company cash flow statement
Unit: Yuan
Item Half of 2021 Half of 2020
I. Cash flows from operating activities:
Cash received from sale of commodities and provision of
489,496,853.93 272,713,654.50
service
Tax rebates received
Other cash received in connection with operating activities 867,037,628.15 470,862,024.41
Subtotal of cash inflows from operating activities 1,356,534,482.08 743,575,678.91
Cash paid for purchase of goods and receipt of service 412,062,158.35 172,267,837.89
Cash paid to and for employees 69,359,294.43 118,594,424.05
Taxes paid 8,803,751.56 978,616.16
Other cash paid in connection with operating activities 673,507,381.42 257,997,211.77
Subtotal of cash outflows from operating activities 1,163,732,585.76 549,838,089.87
Net cash flows from operating activities 192,801,896.32 193,737,589.04
II. Cash flows from investing activities
Cash received from recovery of investments
Cash received from acquisition of investment income 354,115,607.06 261,961,638.26
Net cash recovered from disposal of fixed assets, intangible
7,175.75 3,927.26
assets and other long-term assets.
Net cash received from disposal of subsidiaries and other
0.00 2,716.18
business units
Other cash received in connection with investing activities 0.00
Subtotal of cash inflows from investing activities 354,122,782.81 261,968,281.70
Cash paid for acquisition of fixed assets, intangible assets 4,923,795.56 3,611,624.02
249
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
and other long-term assets
Cash paid for investments
Net cash paid for acquisition of subsidiaries and other
399,042,752.09 2,985,000,000.00
business units
Other cash paid in connection with investing activities 6,281,771,104.20 5,267,082,199.37
Subtotal of cash outflows from investing activities 6,685,737,651.85 8,255,693,823.39
Net cash flows from investing activities -6,331,614,869.04 -7,993,725,541.69
III. Cash flows from financing activities:
Cash received from acquisition of investments 1,759,200,000.00
Cash received from acquisition of borrowings 12,921,529,999.39 7,820,676,181.67
Other cash received in connection with financing activities 1,997,600,000.00 8,282,700,000.00
Subtotal of cash inflows from financing activities 16,678,329,999.39 16,103,376,181.67
Cash paid for repayment of debts 5,856,135,188.84 5,249,357,790.70
Cash paid for distribution of dividends and profits or
396,102,438.39 768,144,810.84
payment of interest
Other cash paid in connection with financing activities 1,665,272,488.74 4,846,678.63
Subtotal of cash outflows from financing activities 7,917,510,115.97 6,022,349,280.17
Net cash flows from financing activities 8,760,819,883.42 10,081,026,901.50
IV. Effect of exchange rate fluctuation on cash and cash
-944,999.70 -14,936.48
equivalents
V. Net increase in cash and cash equivalents 2,621,061,911.00 2,281,024,012.37
Plus: beginning balance of cash and cash equivalents 5,123,092,679.56 3,946,682,922.07
VI. Ending balance of cash and cash equivalents 7,744,154,590.56 6,227,706,934.44
7. Consolidated statement of changes in equity
Current amount
Unit: Yuan
Half of 2021
Ownership interest attributable to the parent company
Other equity Other Total
Minori
instruments Minus: compr owners
Item ty
Share Specia Surplu Generi Undist
Capital treasur ehensi Subtot hip
Prefe Perpe interes
capita l s c risk ributed Others
y ve interes
rred tual Other reserve al
t
l reserve reserve reserve profits
share bond shares incom t
s
s s e
I. Ending 4,505 1,800 191,9 9,750, 370,97 -343,8 3,093, 21,218 39,846 11,524 51,370
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
balance of the ,800, ,000, 04,96 908,62 0,103. 91,820 735,14 ,846,3 ,334,1 ,617,8 ,952,0
previous year 981.0 000.0 0.44 4.64 39 .87 0.45 53.41 35.68 64.56 00.24
0 0
Plus:
changes in
accounting
policies
Prior
error correction
Business
combination
under common
control
Others
4,505 1,800
II. Beginning 191,9 9,750, 370,97 -343,8 3,093, 21,218 39,846 11,524 51,370
,800, ,000,
balance of the 04,96 908,62 0,103. 91,820 735,14 ,846,3 ,334,1 ,617,8 ,952,0
981.0 000.0
current year 0.44 4.64 39 .87 0.45 53.41 35.68 64.56 00.24
0 0
III. Increase or
1,759
decrease in -589, 834,36 -106,7 -3,473, -2,651, 353,24 -2,297,
,200, -43,9 5,342, -219,6
current period 639.0 3,496. 12,174 839,50 226,01 8,962. 977,05
000.0 24.44 369.83 48.76
(decrease to be 0 27 .79 2.90 6.33 95 3.38
0
denoted by “-”)
(I) Total -106,7 -3,415, -3,521, 466,19 -3,055,
comprehensive 12,174 066,13 778,31 2,127. 586,18
income .79 6.23 1.02 74 3.28
(II)Capital 1,759
-589, 834,36 932,30 88,709 1,021,
invested and ,200, -43,9 8,102,
639.0 3,496. 5,577. ,830.6 015,40
reduced by 000.0 24.44 636.86
0 27 15 0 7.75
owner 0
1. Ordinary 834,54 -834,5 122,68 -711,8
shares invested 9,312. 49,312 8,259. 61,053
by owners 60 .60 47 .13
2. Capital
1,759
invested by 1,759, 1,759,
,200, -43,9 35,049 -185,8
other equity 376,94 376,94
000.0 24.44 .83 16.33
instrument 1.72 1.72
0
holders
3. Amount of -589, 4,951, 4,362, 4,362,
251
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
share-based 639.0 665.06 026.06 026.06
payment 0
charged to
ownership
interest
-33,97 -30,86
3,115, 3,115,
4. Others 8,428. 2,506.
921.97 921.97
87 90
-58,77 -58,99 -201,2 -260,2
（III） Profit -219,6
3,366. 3,015. 30,837 23,852
distribution 48.76
67 43 .13 .56
1. Surplus
reserve accrued
2. Generic risk
reserve accrued
3. Distribution -165,4 -165,4
to owners (or 80,420 80,420
shareholders) .45 .45
-58,77 -58,99 -35,75 -94,74
-219,6
4. Others 3,366. 3,015. 0,416. 3,432.
48.76
67 43 68 11
(IV) Internal
carry-forward of
ownership
interest
1. Capital
reserve
transferred to
capital (or share
capital)
2. Surplus
reserve
transferred to
capital (or share
capital)
3. Losses
covered by
surplus reserve
4. Changes in
defined benefit
plan carried
252
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
forward to
retained
earnings
5. Other
comprehensive
income carried
over to retained
earnings
6. Others
(V) Special
reserve
1. Accrued in
the current
period
2. Used in the
current period
-2,760, -2,760, -422,1 -3,182,
(VI) Others
267.03 267.03 58.26 425.29
4,505 3,559
IV. Balance at 191,8 9,756, 1,205, -450,6 3,093, 17,745 37,195 11,877 49,072
,211, ,200,
the end of the 61,03 250,99 333,59 03,995 515,49 ,006,8 ,108,1 ,866,8 ,974,9
342.0 000.0
current period 6.00 4.47 9.66 .66 1.69 50.51 19.35 27.51 46.86
0 0
Prior amount
Unit: Yuan
Half of 2020
Ownership interest attributable to the parent company
Other equity Other
Total
instruments Minus: compr Minorit
Item Share Specia Surplu Generi Undist owners
Capital treasur ehensi Subtot y
Prefe Perp hip
capita l s c risk ributed Others
rred etual Other reserve y ve al interest
l reserve reserve reserve profits interest
share bond s shares incom
s s e
4,216
I. Ending 2,507, 611,31 -41,56 2,400, 17,590 26,061 6,588,1 32,649,
,015,
balance of the 590,54 7,618. 2,505. 778,31 ,186,2 ,689,9 75,571. 865,520
009.0
previous year 0.72 59 82 0.95 12.30 48.56 69 .25
0
Plus:
changes in
accounting
policies
253
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Prior
error correction
Business
combination
under common
control
Others
4,216
II. Beginning 2,507, 611,31 -41,56 2,400, 17,590 26,061 6,588,1 32,649,
,015,
balance of the 590,54 7,618. 2,505. 778,31 ,186,2 ,689,9 75,571. 865,520
009.0
current year 0.72 59 82 0.95 12.30 48.56 69 .25
0
III. Increase or
decrease in 807,8 518,25 -111,0 2,542, 3,757, 1,064,5 4,821,9
-451,6
current period 18,15 7,088. 71,172 753,63 306,09 99,475. 05,575.
09.79
(decrease to be 6.19 50 .02 6.94 9.82 61 43
denoted by “-”)
(I) Total -111,0 3,163, 3,052, 3,699,7
646,962
comprehensive 71,172 865,46 794,28 57,176.
,888.55
income .02 0.00 7.98 53
(II)Capital
807,8 516,00 1,323, 1,888,4
invested and 564,623
18,15 2,102. 820,25 43,358.
reduced by ,100.28
6.19 50 8.69 97
owner
1. Ordinary 502,56 502,56 1,062,3
559,769
shares invested 0,256. 0,256. 30,000.
,743.44
by owners 56 56 00
2. Capital
invested by 807,8 807,81
807,818
other equity 18,15 8,156.
,156.19
instrument 6.19 19
holders
3. Amount of
share-based
16,367 16,367
payment 16,367,
,653.8 ,653.8
charged to 653.81
1 1
ownership
interest
-2,925, -2,925, 4,853,3 1,927,5
4. Others
807.87 807.87 56.84 48.97
254
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
-621,1 -621,5 -147,73 -769,30
（III） Profit -451,6
11,823 63,432 8,175.2 1,608.0
distribution 09.79
.06 .85 2 7
1. Surplus -451,6 451,60
reserve accrued 09.79 9.79
2. Generic risk
reserve accrued
3. Distribution -621,5 -621,5 -147,73 -769,30
to owners (or 63,432 63,432 8,175.2 1,608.0
shareholders) .85 .85 2 7
4. Others
(IV) Internal
carry-forward
of ownership
interest
1. Capital
reserve
transferred to
capital (or
share capital)
2. Surplus
reserve
transferred to
capital (or
share capital)
3. Losses
covered by
surplus reserve
4. Changes in
defined benefit
plan carried
forward to
retained
earnings
5. Other
comprehensive
income carried
over to retained
earnings
6. Others
255
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
(V) Special
reserve
1. Accrued in
the current
period
2. Used in the
current period
2,254, 2,254, 751,662 3,006,6
(VI) Others
986.00 986.00 .00 48.00
4,216
IV. Balance at 807,8 3,025, 611,31 -152,6 2,400, 20,132 29,818 7,652,7 37,471,
,015,
the end of the 18,15 847,62 7,618. 33,677 326,70 ,939,8 ,996,0 75,047. 771,095
009.0
current period 6.19 9.22 59 .84 1.16 49.24 48.38 30 .68
0
8. Parent company statement of changes in equity
Current amount
Unit: Yuan
Half of 2021
Other equity
Other
instruments Minus: Undistr Total
Item Share Capital compreh Special Surplus
Preferr Perpet treasury ibuted Others ownership
capital reserve ensive reserve reserve
ed ual Others shares profits interest
income
shares bonds
I. Ending 4,505,8 1,800,0 191,90 11,290,4 2,527,4
370,970, 1,050,79 20,995,45
balance of the 00,981. 00,000. 4,960.4 80,329.8 47,967.
103.39 0,016.75 4,152.21
previous year 00 00 4 7 54
Plus:
changes in
accounting
policies
Prior
error correction
Others
II. Beginning 4,505,8 1,800,0 191,90 11,290,4 2,527,4
370,970, 1,050,79 20,995,45
balance of the 00,981. 00,000. 4,960.4 80,329.8 47,967.
103.39 0,016.75 4,152.21
current year 00 00 4 7 54
III. Increase or 1,759,2 525,62
-589,63 -43,92 4,986,71 834,363, 1,454,814,
decrease in 00,000. 4,909.9
9.00 4.44 4.89 496.27 565.08
current period 00 0
256
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
(decrease to be
denoted by “-”)
(I) Total 584,39
584,398,2
comprehensive 8,276.5
76.57
income 7
(II)Capital
1,759,2
invested and -589,63 -43,92 4,986,71 834,363, 929,189,6
00,000.
reduced by 9.00 4.44 4.89 496.27 55.18
00
owner
1. Ordinary
834,549, -834,549,3
shares invested
312.60 12.60
by owners
2. Capital
invested by other 1,759,2
-43,92 35,049.8 -185,816 1,759,376,
equity 00,000.
4.44 3 .33 941.72
instrument 00
holders
3. Amount of
share-based
-589,63 4,951,66 4,362,026.
payment charged
9.00 5.06 06
to ownership
interest
4. Others
（III） Profit -58,773 -58,773,36
distribution ,366.67 6.67
1. Surplus
reserve accrued
2. Distribution to
owners (or
shareholders)
-58,773 -58,773,36
3. Others
,366.67 6.67
(IV) Internal
carry-forward of
ownership
interest
1. Capital
reserve
transferred to
capital (or share
capital)
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
2. Surplus
reserve
transferred to
capital (or share
capital)
3. Losses
covered by
surplus reserve
4. Changes in
defined benefit
plan carried
forward to
retained earnings
5. Other
comprehensive
income carried
over to retained
earnings
6. Others
(V) Special
reserve
1. Accrued in the
current period
2. Used in the
current period
(VI) Others
IV. Balance at 4,505,2 3,559,2 191,86 11,295,4 3,053,0
1,205,33 1,050,79 22,450,26
the end of the 11,342. 00,000. 1,036.0 67,044.7 72,877.
3,599.66 0,016.75 8,717.29
current period 00 00 0 6 44
Prior amount
Unit: Yuan
Half of 2020
Other equity
Other
instruments Minus: Undistrib Total
Item Share Capital compre Special Surplus
Preferr Perpet treasury uted Others ownership
capital reserve hensive reserve reserve
ed ual Others shares profits interest
income
shares bonds
I. Ending 4,216, 4,876,9
611,317, 979,184 2,513,563 11,974,429,
balance of the 015,00 84,181.
618.59 ,653.16 ,128.07 352.65
previous year 9.00 01
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Plus:
changes in
accounting
policies
Prior
error correction
Others
II. Beginning 4,216, 4,876,9
611,317, 979,184 2,513,563 11,974,429,
balance of the 015,00 84,181.
618.59 ,653.16 ,128.07 352.65
current year 9.00 01
III. Increase or
decrease in 807,81
16,367, -439,290, 384,895,03
current period 8,156.
653.81 778.18 1.82
(decrease to be 19
denoted by “-”)
(I) Total
182,272,6 182,272,65
comprehensive
54.67 4.67
income
(II)Capital
807,81
invested and 16,367, 824,185,81
8,156.
reduced by 653.81 0.00
19
owner
1. Ordinary
shares invested
by owners
2. Capital
invested by 807,81
807,818,15
other equity 8,156.
6.19
instrument 19
holders
3. Amount of
share-based
payment 16,367, 16,367,653.
charged to 653.81 81
ownership
interest
4. Others
（III） Profit -621,563, -621,563,43
distribution 432.85 2.85
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
1. Surplus
reserve accrued
2. Distribution
-621,563, -621,563,43
to owners (or
432.85 2.85
shareholders)
3. Others
(IV) Internal
carry-forward
of ownership
interest
1. Capital
reserve
transferred to
capital (or share
capital)
2. Surplus
reserve
transferred to
capital (or share
capital)
3. Losses
covered by
surplus reserve
4. Changes in
defined benefit
plan carried
forward to
retained
earnings
5. Other
comprehensive
income carried
over to retained
earnings
6. Others
(V) Special
reserve
1. Accrued in
the current
period
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2. Used in the
current period
(VI) Others
IV. Balance at 4,216, 807,81 4,893,3
611,317, 979,184 2,074,272 12,359,324,
the end of the 015,00 8,156. 51,834.
618.59 ,653.16 ,349.89 384.47
current period 9.00 19 82
III. Company profile
(I) Corporate history
New Hope Liuhe Co., Ltd. (formerly Sichuan New Hope Agriculture Co., Ltd.) (hereinafter, “the company” or “this company”) was
incorporated on March 4, 1998 with the approval of Sichuan Provincial People's Government Chuanfuhan (1997) Document No. 260
after overall change to the former Mianyang Hope Feed Co., Ltd, with a registered capital of CNY 140,020,000.00 Yuan. On March
11 and September 15 of 1998, the company publicly issued 36,000,000 public shares to the public and 4,000,000 internal employee
shares to its employees, which were respectively listed for trading on Shenzhen Stock Exchange, with the stock code: 000876. After
the company’s stocks were listed, through the transfer of bonus shares in May, 2000, allotment of shares in March 2001, the transfer
of bonus shares in July 2002, October 2002, June 2008 and May 2010, the implementation of the Company Equity Division Reform
in August 2006, and upon the completion of material assets reorganization in October 2011 and the implementation of the profit
compensation scheme for material assets reorganization in July 2014, the company's total share capital was changed to 1,729,507,365
shares.
According to the company’s interim general meeting resolutions dated September 4, 2013 and the Approval of Non-public Stock
Issuing of New Hope Liuhe Co., Ltd (CSRC Permit [2014] No. 565) from CSRC, the company issued privately 354,609,927 shares
to five specific shareholders including South Hope Industrial Co., Ltd against capital contributions made by each shareholder in cash.
This private placement was completed on August 26, 2014. Upon completion of this private placement, the company’s total share
capital was changed to 2,084,117,292 shares.
According to the resolutions of the company's 2015 annual general meeting, based on the company's total share capital of
2,084,117,292 shares, the capital reserve was transferred to increase the share capital for 10 shares per shares, with relate d paperwork
for this conversion into share capital completed on June 27, 2016, upon which the company’s total share capital was changed to
4,168,234,584 shares.
According to the resolutions of the company’s second interim general meeting held on June 29, 2016, and with the approval of CSRC
“CSRC Permit [2016] No. 3187”, the company changed the total share capital to 4,216,0 15,009 shares on January 16, 2017 with the
related paperwork for acquisition of 70% equities in Yangling Besun through issue of shares and payment of cash.
According to the resolutions of the company’s 2018 annual general meeting, and with the approval of CSRC “Approval of Public
Issue of Convertible Corporate Bonds by New Hope Liuhe Co., Ltd (CSRC Permit [2019] No. 1902”, the company publicly issued
40 million convertible corporate bonds each having a par value of 100 Yuan on January 3, 2020, for a total issue amount of 4.0 billion
Yuan. The start and end dates of existence of the convertible bonds are January 3, 2020 and January 2, 2026, and the start and end
dates of conversion into shares are July 9, 2020 and January 1, 2026. As of June 30, 2021, the sha re capital was increased by
111,119,860 shares by conversion of convertible bonds into shares.
According to resolutions of the 1st interim general meeting 2019 of the company held on June 6, 2019, “Proposal regarding “New
Hope Liuhe Co., Ltd 2019 Restricted Stock and Stock Option Incentive Plan (draft) and its Summary” was passed, whereby the
company completed grant of 3.60 million shares of restricted stock to 24 incentive recipients and registration of 8.40 million stock
options on July 29, 2019. On August 6, 2020, the company held the 19th meeting of its 8th board of directors and the 10th meeting of
its 8th board of supervisors, deliberating and passing the “Proposal regarding the First Exercise Period /Exercise in Unlocke d
Period/Satisfaction of Conditions for Lifting of Sales Restrictions under 2019 Stock Option and Restricted Stock Incentive Plan”,
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
thus increasing the share capital by 2,166,055 shares as of June 30, 2021 due to exercise of stock options. On January 10, 2 021, the
company held the 28th meeting of the 8th board of directors of the company, deliberating and passing the “Proposal regarding
Cancellation of Part of Stock Options and Repurchase and Cancellation of Part of Restricted Stocks”, as a result of which 1,237,500
shares of restricted stocks were repurchased and cancelled as of June 30, 2021.
According to the resolutions of the company’s 2019 annual general meeting, and with the approval of CSRC “Approval of Private
Placement of Stocks by New Hope Liuhe Co., Ltd (CSRC Permit [2020] No. 1961”, the company privately placed 177,147,918 RMB
ordinary shares to two specific shareholders of South Hope Industrial Co., Ltd and New Hope Group Co., Ltd against capital
contributions by these shareholders in cash, which private placement was completed on September 18, 2020.
In the first half of 2021, the company reduced its share capital by a total of 589,639 shares due to exercise of stock options and
repurchase and cancellation of restricted stocks, with its total share capital changed to 4,505,211,342 shares.
As of June 30, 2021, the total share capital of the company was 4,505,211,342 shares, of which 181,842,540 outstanding shares were
subject to restrictions on sales and 4,324,368,802 outstanding shares subject to no restrictions on sales.
(II) Business situation
After years of development, by the end of June 2021, the company has successively had 785 directly or indirectly controlled
subsidiaries, 15 affiliates and 9 joint ventures in 30 Chinese provinces, municipalities, autonomous regions and special administrative
regions (including Sichuan, Yunnan, Guizhou, Beijing, Shanghai, Chongqing, Guangdong, Hainan, Hebei, Henan, Shandong, Shanxi,
Jiangsu, Anhui, Zhejiang, Jiangxi, Hubei, Hunan, Shaanxi, Heilongjiang, Jilin, Liaoning, Gansu, Tibet, Inner Mongolia, Guangxi,
Ningxia, Tianjin, Hong Kong, Fujian) and 16 foreign countries (including: Vietnam, Cambodia, the Philippines, Bangladesh,
Indonesia, Sri Lanka, Singapore, Myanmar, Laos, Nepal, Egypt, Turkey, South Africa, Poland, India, Nigeria) thro ugh investment
and incorporation and M&As, thus becoming an industry conglomerate with feed, farming, slaughtering and meat products as its core
competitiveness.
(III) Address and business scope of the company, etc.
The company’s business license registration number: 91510000709151981F; Legal representative: Liu Chang; Registered address:
National High-tech Industry Development Zone, Mianyang City, Sichuan Province; Headquarters’ address: No. 376, Jinshi Road,
Jinjiang Industrial Park, Chengdu City, Sichuan Province.
The company's business scope: production and processing of compound feeds, concentrated feeds and concentrate supplements (by
branches only) (the above business items and term of business are subject to the business license). General business items (the
following scope does not include business items subject to pre-registration approval, while business items subject to post-registration
approval are to be conducted by presentation of license or approval document): planting of cereals and other crops; raising of
livestock; raising of pigs; poultry raising; wholesale and retail sale of goods; import and export business; project investme nt and
management; scientific and technological exchange and promotion services.
(IV) Main products of the company
The company's main products in its feed business include swine feed, poultry feed, fish feed, etc. the main products of its swine
business include breeding pigs and commercial pigs; its poultry business mainly includes breeding poultry, commercial poultry,
poultry slaughter, etc.; its food business mainly includes livestock slaughter, processed meat products, central kitchen, etc.
(V) Date when the financial report is approved for publication
The semiannual financial statements of the company for 2021 were approved by the company’s board of directors for publication on
August 27, 2021.
(VI) Scope of consolidated financial statements
As of June 30, 2021, the company had 785 subsidiaries included in the scope of its consolidated financial statements; compare d with
the previous year, 40 new subsidiaries were added in the scope of consolidated financial statements this year, and 12 subsidiaries
were no longer included in the scope of consolidation this year. For details, please refer to the relevant contents of "Note VIII.
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Changes in the scope of consolidation" and "Note IX: interests in other entities’.
IV. Basis of preparation of financial statements
1. Basis of preparation
The semiannual financial statements 2021 of this company have been prepared on the premises of going concern, based on the
accrual system and actual transactions and events and according to the “Enterprise Accounting Standards—Basic Standards” and
specific accounting standards, guidelines for application of enterprise accounting standards, interpretation of enterprise accounting
standards and other related provisions promulgated by the Ministry of Finance (hereinafter collectively “Enterprise Accountin g
Standards”), as well as the disclosure rules set forth in the “Rules of Information Disclosure Preparation and Presentation of
Companies Issuing Securities Publicly No. 15—General Provisions for Financial Reporting” issued by CSRC.
2. Going concern
These financial statements have been prepared on the basis of going concern. The company has the ability as a going concern at least
within 12 months of the end of the reporting period, free of any significant events that affect its ability as a going concern.
V. Important accounting policies and accounting estimates
Reminder about specific accounting policies and accounting estimates:
Based on the practical production and operation characteristics, the company has formulated specific accounting policies and
accounting estimates for provisioning for bad debts of receivables, inventory valuation methods, measurement of biological assets,
depreciation of fixed assets, revenue recognition and other transactions and events, as detailed in this Note V “(10) Financial
instruments, (11) Inventories, (17) Fixed assets, (20) Biological assets, (22) Intangible assets, (33) Revenue”. The indicative
description of important accounting judgments and estimates made by the company when applying its accounting policies is detailed
in “Note V.(39) Important accounting judgments and estimates”.
1. Statement of compliance with enterprise accounting standards
The semiannual financial statements of 2021 prepared by the company comply with the requirements of enterprise accounting
standards and reflect truly and completely the financial condition as of June 30 2021 and bus iness results and cash flow of the
company in the first half of 2021. In addition, the company's financial statements in all material aspects comply with the disclosure
requirements related to financial statements and their notes as set forth in “Rules of Information Disclosure Preparation of Companies
Issuing Securities Publicly No. 15—General Provisions for Financial Reporting” revised by CSRC.
2. Accounting period
The company's accounting period is divided into annual period and interim period; the accounting year begins on January 1 and ends
on December 31 in the Gregorian calendar, and the accounting interim period refers to a reporting period shorter than one full
accounting year.
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
3. Operating cycle
The company treats a period from acquisition of assets used for processing to realization of cash or cash equivalents as a normal
operating cycle, and the operating cycle of each business segment of the company is shorter than 12 months; the company uses 12
months as a criterion for classification of liquidity of assets and liabilities.
4. Accounting currency
The company and its domestic subsidiaries use RMB as accounting currency; its overseas subsidiaries use currencies in the pri mary
economic environments in which they operate as accounting currencies, and overseas subsidiaries need to prepare financial
statements in accounting currencies and financial statements converted into RMB.
5. Accounting treatment method for business combinations under common control and not under common
control
(1) Business combinations under common control
A business combination in which companies participating in combination are all ultimately controlled by the same one or more
parties before and after combination and such control is not temporary is a business combination under common control. Assets and
liabilities acquired by the combing party in a business combination are measured at book value thereof in the consolidated financial
statements of the ultimate controlling party at the combination date. The share capital premium in the capital reserve is adjusted by
the difference between the book value of net assets acquired and the book value of combination consideration paid (or total par value
of shares issued); the retained earnings are adjusted if the share capital premium in capital reserve is insufficient for offsetting. The
combination date is the date when the combining party actually acquires the control of the combined party.
(2) Business combinations not under common control
A business combination in which all parties participating in combination are not ultimately controlled by the same one or more
parties before and after combination is a business combination not under common control. The sum of assets paid out by the
acquiring party to acquire the control of the acquired party (including equities held in the acquired party before the purchase date),
liabilities incurred or assumed and fair value of equity securities issued at the purchase date minus the share of identifiab le net assets
of the acquired party at the purchase date that are acquired in combination is recognized as goodwill if positive or charged to the
current non-business revenue if negative. The purchase date is the date when the acquiring party actually acquires the control of the
acquired party.
For a business combination not under common control that is realized step by step through multiple transactions, equities of the
acquired party held prior to the purchase date are re-measured at the fair value of such equities as of the purchase date, and the
difference between fair value and their book value is charged to the current investment income. Other comprehensive income
involved in equities of the acquired party held prior to the purchase date and accounted for under the equity method and subs equently
re-classifiable to profit and loss and other changes in ownership interest are transferred to the current investment income at the
purchase date; where the equities held in the acquired party prior to the purchase date are equity instrument investments at fair value
through other comprehensive income, other comprehensive income recognized before the purchase date is transferred to the reta ined
earnings at the purchase date.
（3） Treatment of related transaction costs in business combination
The audit, legal service, appraisal consulting and other intermediary fees and other related management expenses incurred by the
company for business combination are charged to the current profit and loss as and when incurred. The transaction costs of equity
securities or debt securities issued by the company as the consideration for combination are charged to the initially recognized
amount of the equity securities or debt securities.
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
6. Method for preparation of consolidated financial statements
(1) General principles
The scope of consolidation of consolidated financial statements is determined based on control, including the company and
subsidiaries controlled by the company. Control means the company has the power over the investee to enjoy variable return by
participating in the related activities of the investee and has the ability to exert its power over the investee to influence the amount of
its return. The company begins to include a subsidiary in the scope of consolidation as of the date when the company acquires the
actual control of the subsidiary; the company ceases to include the subsidiary in the scope of consolidation as of the date of loss of
the actual control.
The equities, profit and loss and total comprehensive income attributable to minority shareholders of subsidiaries are separately
presented in the shareholder equities of the consolidated balance sheet and after the items of net profits and total comprehe nsive
income on the consolidated income statement respectively. If the current loss shared by minority shareholders of a subsidiary exceeds
the share of minority shareholders in the beginning ownership interest of the subsidiary, its balance is still offset against the minority
interests.
When the accounting policy or accounting period adopted by any of its subsidiaries is inconsistent with that adopted by the company,
necessary adjustments have been made to the financial statements of such subsidiary according to the company’s accounting policy
or accounting period at the time of combination. All significant internal transactions, internal current accounts and unrealized profit
and loss on internal transactions within the scope of consolidation have been offset when preparing the consolidated financia l
statements.
(2) Acquisition of subsidiaries by combination
For a subsidiary acquired through business combination under common control, when preparing the consolidated current financia l
statements, based on the book value of all assets and liabilities of the combined subsidiary in the financial statements of the ultimate
controlling party, the combined subsidiary is treated as if it has been included in the scope of consolidation of the company when the
ultimate controlling party of the company begins exercising control over it, and corresponding adjustments are made to the beginning
amounts of the consolidated financial statements and previous comparative statements.
For a subsidiary acquired through business combination not under common control, when preparing the consolidated current
financial statements, based on the fair value of various identifiable assets and liabilities of the acquired subsidiary as determined at
the purchase date, the acquired subsidiary is included in the scope of consolidation of the company as of the purchase date.
(3) Disposal of subsidiaries
When the company loses its control over an existing subsidiary, the resulting gains or losses from disposal are charged to the
investment income in the period during which the control is lost. Where the control over an existing subsidiary is lost due to disposal
of part of equity investment or otherwise, in the consolidated financial statements, the remaining equities are re -measured at the fair
value thereof at the date of loss of control; the sum of the consideration acquired by disposal of eq uities and the fair value of
remaining equities minus the share of the net assets continuously calculated by the existing subsidiary from the date of purc hase as
calculated at the original shareholding ratio and goodwill is charged to the investment income during the period in which the control
is lost. Moreover, other comprehensive income and etc. related to the equity investment in the existing subsidiary are charge d to the
current investment income at the time of loss of control, except for other comprehensive income resulting from changes in net
liabilities or net assets of the defined benefit plan re-measured by such existing subsidiary.
Where the company disposes of its equity investment in a subsidiary step by step through multiple transactions until loss of control,
distinction needs to be made as to whether all such transactions constitute a package deal.
①These transactions are entered into simultaneously or taking into account the mutual effect;
②These transactions can only achieve a complete commercial result if made together;
③The occurrence of a particular transaction depends upon occurrence of at least one other transaction;
④A particular transaction is uneconomical if considered individually, but is economical if considered together with other
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transactions.
Where various transactions do not constitute a package deal, each of the transactions before loss of control over the subsidiary is
treated for accounting purpose according to the applicable principles described in the “Partial disposal of e quity investments in a
subsidiary without loss of control’（as detailed in “Note V.6(4)）.
Where various transactions constitute a package deal, the various transactions are accounted for as a single transaction of d isposal of
subsidiary and loss of control; however, the difference between each disposal price before loss of control and the share of net assets
of such subsidiary corresponding to disposal of investment as continuously calculated as from the purchase date is charged to other
comprehensive income in the consolidated financial statements, and transferred to the profit and loss in the period of loss of control
all together at the time of loss of control.
(4) Changes in minority interest
The capital reserve in the consolidated financial statements is adjusted by both the difference between the long-term equity
investment newly acquired by the company due to purchase of minority interest and the share of net assets of the subsidiary a s
calculated at the newly-added shareholding ratio and the difference between the disposal price acquired from partial disposal of
equity investments in subsidiaries without loss of control and the share of net assets of the subsidiaries corresponding to d isposal of
long-term equity investments, with the retained earnings to be adjusted if the capital reserve is sufficient for offsetting purposes.
7. Classification of joint venture arrangements and accounting treatment method for joint operation
Joint venture arrangement refers to an arrangement in which two or more participating parties share the control. The joint venture
arrangements of the company consist of joint operation and joint venture according to the rights enjoyed and obligations assumed in
the joint venture arrangements. Joint operation refers to a joint venture arrangement in which the company enjoys the assets related to
such arrangement and assumes the liabilities related to such arrangement. Joint venture refers to the joint venture arrangeme nt in
which the company only has the right to the net assets of such arrangement.
As a party to joint operation, the recognizes assets separately held and liability separately assumed by the company and asse ts held
jointly and liabilities assumed jointly by the company according to its share; recognizes the income from joint operation due to sale
of products according to the company’s share; recognizes the expenses incurred separately by the company and recognizes the
expenses incurred by joint operation according to the company’s share.
The investments of the company in joint venture are accounted for using the equity method and treated according to “Note V. (15)
Long-term equity investments” for accounting purposes.
8. Criteria for determination of cash and cash equivalents
The cash and cash equivalents of the company cons ist of the cash on hand, deposits readily available for payment and investments
held by the company that have a short term(generally due within 3 months of the purchase date), are highly liquid and easy to convert
into a known amount of cash and have minimum risk of value change.
9. Foreign currency transactions and foreign currency statement translation
(1)Foreign currency transactions
The company converts the foreign currency transactions from foreign-currency amount into amount in functional currency at the spot
exchange rate on the date of transaction, but the foreign exchange transactions or transactions involving foreign exchange that are
incurred by the company are converted into amounts in accounting currency at the exchange rate actually used.
At the balance sheet date, the foreign-currency monetary items are converted at the spot exchange rate at the balance sheet date, with
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
the resulting exchange difference generally charged to the current profit and loss, except that:
①The exchange difference resulting from foreign-currency special borrowings related to acquisition of assets that meet the
capitalization conditions is treated according to the principles for capitalization of borrowing costs; ② the exchange difference from
hedging instruments used for effective hedging of net investments in overseas operations is charged to other comprehensive income
and will not be recognized as current profit and loss until disposal of the net investments; ③ the exchange difference resulting from
changes in book balances of foreign-currency monetary items available for sale other than amortized costs is charged to other
comprehensive income.
Foreign-currency non-monetary items measured at historical cost are still measured at the amount in accounting currency converted
at the spot exchange rate when the transaction occurs. Foreign-currency non-monetary items measured at fair value are converted at
the spot exchange rate at the date of determination of fair value, with the difference charged to the current profit and loss or other
comprehensive income.
(2) Translation of foreign currency financial statements
When preparation of consolidated financial statements involves overseas operations, if there are foreign-currency monetary items that
substantially constitute net investments in overseas operations, the exchange difference resulting from changes in exchange ra te is
recognized as other comprehensive income as the “foreign currency statement translation difference”; when disposing of overse as
operations, such exchange different is charged to the current profit and loss from disposal.
The method for foreign currency statement translation of overseas operations is as follows:
①The items of assets and liabilities in the balance sheet are converted at the spot exchange rate at the date of balance sheet; all items
of ownership interest other than the item of “undistributed profits” are converted at the spot exchange rate when incurred, a nd the
item of “undistributed profits” is calculated and presented according to items of net profits and profit distribution; the difference in
total amount of items of assets, liabilities and ownership interest after conversion is recognized as other comprehensive inc ome, after
being treated as the foreign currency statement translation difference. When an overseas operation is disposed of and the control
thereof is lost, the foreign currency statement translation difference presented under the item of other comprehensive income in the
balance sheet and related to such overseas operation is transferred to the current profit and loss from disposal in entirety or according
to the ratio of such overseas operation disposed of.
②The items of income, cost and expense and others in the income statement are converted at the exchange rate appropriate to the
spot exchange rate when the transaction occurs.
③The items in the cash flow statement that reflect the incurred amounts are converted at the exchange rate appropriate to the spot
exchange rate when the transaction occurs, with the effects of exchange rate changes on cash presented separately in the cash flow
statement.
10. Financial instruments
Financial instruments refer to the instruments that form financial assets of a party and form the financial liabilities or equities of other
parties.
(1) Classification of financial instruments
Financial instruments include financial assets and financial liabilities, consisting of cash at bank an d on hand, debt investments,
equity investments other than long-term equity investments, receivables, payables, borrowings, bonds payable and share capital, etc.
(2) Recognition and initial measurement of financial assets and financial liabilities
The company recognizes financial assets and financial liabilities in the balance sheet when it becomes a party to the related financial
instrument contract terms.
All financial assets and financial liabilities are measured at fair value at the time of initial recognition, except for accounts receivable
that don’t have significant financing component. For financial assets or financial liabilities at fair value through profit or loss, related
transaction costs are directly charged to the current profit and loss; for other types of financial assets or financial liabilities, related
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
transaction costs are charged to the initially recognized amounts. Accounts receivable that have significant financing component are
initially measured by the company at the transaction price determined according to the accounting policies contained in Note V（33）
(3) Classification and subsequent measurement of financial assets
①Classification of financial assets
The company generally classifies financial assets into different types at the t ime of initial recognition according to the business
model for management of financial assets and the contractual cash flow characteristics of financial assets: financial assets measured
at amortized cost, financial assets measured at fair value through other comprehensive income and financial assets at fair value
through profit or loss.
Unless the company changes its business model for management of financial assets, in which case all related financial assets affected
are reclassified the first day during the first reporting period after the change in the business model, financial assets may not be
reclassified after initial recognition.
The company classifies a financial asset that meets all of the following conditions at the same time and is not designate d as at fair
value through profit and loss as a financial asset measured at amortized cost.
A. The business model of the company for management of such financial asset aims at receiving contractual cash flow;
B. The contractual terms of such financial asset provide that the cash flow arising on a particular date consists solely of payment of
principal and interest based on outstanding principal amount.
The company classifies a financial asset that meets all of the following conditions at the same time and is not designated as at fair
value through profit and loss as a financial asset measured at fair value through other comprehensive income:
A. The business model of the company for management of such financial asset aims at both receiving contractual cash flow and
selling such financial asset;
B. The contractual terms of such financial asset provide that the cash flow arising on a particular date consists solely of payment of
principal and interest based on outstanding principal amount.
For equity instrument investments held not for trading, the company may irrevocably designate them as financial assets at fair value
through other comprehensive income at the time of initial recognition. Such designation is made on the basis of individual
investments and the re lated investments meet the definition of equity instrument from the perspective of issuer.
Apart from the aforesaid financial assets measured at amortized cost and financial assets at fair value through other comprehensive
income, the company classifies all financial assets as financial assets at fair value through profit and loss. At the time of initial
recognition, if the accounting mismatch can be eliminated or significantly reduced, the company may irrevocably designate financial
assets that would otherwise be measured at amortized cost or financial assets that would otherwise be at fair value through other
comprehensive income as financial assets at fair value through profit and loss.
The business model for management of financial assets refers to how the company manages the financial assets in order to generate
cash flow. The business model determines whether the source of cash flow from financial assets managed by the company is
receiving contractual cash flow or selling financial assets or both. The company determines its business model for management of
financial assets pursuant to objective facts and based on the specific business objectives determined by the key management
personnel for management of financial assets.
The company assesses the contractual cash flow characteristics of financial asses in order to determine whether the contractual cash
flow from related financial assets at a particular date consists solely of payment of principal and interest based on outstan ding
principal amount. Of them, the principal refers to the fair value of a financial asset at the time of initial recognition; interest includes
the time value of currency, the credit risk associated with outstanding principal amount during a specific period and the consideration
for other basic loan risks, costs and profits. In addition, the company assesses the contractual terms that might result in changes to the
time distribution or amount of contractual cash flow from a financial asset in order to determine whether it meets the requirements of
the aforesaid contractual cash flow characteristics.
②Subsequent measurement of financial assets
A. Financial assets measured at fair value though profit or loss
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
After the initial recognition, such financial assets are subsequently measured at fair value and the resulting gains or losses (including
interest and dividend revenue) are charged to the current profit and loss, unless such financial assets are part of hedging relationship.
B. Financial assets measured at amortized cost
After the initial recognition, such financial assets are measured at amortized cost using the effective interest rate method. The gains
or losses resulting from a financial asset that is measured at amortized cost and is not part of any hedging relationship are charged to
the current profit and loss when derecognized, amortized according to effective interest rate method or recognized with respe ct to
impairment.
C. Debt investments measured at fair value through other comprehensive income
After the initial recognition, such financial assets are subsequently measured at fair value. The interest, impairment loss or gain and
exchange gain or loss calculated using the effective interest rate method are charged to the current profit and loss, with other gains or
losses charged to other comprehensive income. At the time of de-recognition, the accumulated gains or losses previously charged to
other comprehensive income are transferred out of other comprehensive income and charged to the current profit and loss.
D. Equity instrument investments measured at fair value through other comprehensive income
After the initial recognition, such financial assets are subsequently measured at fair value. The dividend revenue is charged to profit
and loss, and other gains or losses are charged to other comprehensive income. At the time of de-recognition, the accumulated gains
or losses previously charged to other comprehensive income are transferred out of other comprehensive income and charged to the
retained earnings.
(4) Classification and subsequent measurement of financial liabilities
The company classifies financial liabilities into financial liabilities at fair value through profit or loss and financial liabilities
measured at amortized cost.
① Financial liabilities measured at fair value through profit or loss
Such financial liabilities include financial liabilities held for trading (including derivative instruments that are financial liabilities)
and financial liabilities designated as at fair value through profit or loss.
After the initial recognition, such financial liabilities are subsequently measured at fair value, and the resulting gains or losses
(including interest expense) except otherwise related to hedge accounting are charged to the current profit and loss.
② Financial liabilities measured at amortized cost
After the initial recognition, such financial liabilities are measured at amortized cost using the effective interest rate me thod.
（5）Offset of financial assets and financial liabilities
Financial assets and financial liabilities are presented in the balance sheet respectively, without mutual offset. However, where all of
the following conditions are met at the same time, financial assets and financial liabilities are presented in the balance sheet at the net
amount after mutual offset.
①The company has the legal right to offset the recognized amounts and such legal right is currently enforceable;
②The company plans to make netting settlement or realize such financial assets and repay such financial liabilities at the same time.
(6) De-recognition of financial assets and financial liabilities
Such financial asset is derecognized when one of the following conditions is met:
①The contractual right to receive the cash flow from such financial asset terminates;
②Such financial asset has been transferred and almost all risk and reward on the ownership of such financial asset has been
transferred by the company to the transferee,
③Such financial asset has been transferred and the company has waived the control of such financial asset although the company has
not transferred or retained almost all risk and reward on the ownership of the financial asset.
When the transfer of a financial asset fully meets the conditions for de-recognition, the company charges the difference between the
following two amounts to the current profit and loss:
①The book value of the financial asset being transferred at the date of de-recognition;
②The sum of consideration received due to transfer of financial asset and the amount in the accumulated amount of fair value
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change previously directly charged to the other comprehensive income that corresponds to the derecognized portion (if the financial
assets involved in transfer are debt investments at fair value through other comprehensive income).
When the present obligations for a financial liability (or a part of it) have been released, the company derecognizes such financial
liability (or such part of financial liability).
（7）Impairment of financial assets
①The company conducts impairment accounting treatment and recognizes loss provision for the following items based on expected
credit loss:
A. Financial assets measured at amortized cost;
B. Contract assets;
C. Debt investments measured at fair value through other comprehensive income;
C. Lease receivables
Other financial assets measured at fair value in the company’s possession are not applicable to the expected credit loss mode l,
including debt investments or equity instrument investments at fair value through profit or loss, equity instrument investments
designated as at fair value through other comprehensive income, and derivative financial assets.
② Measurement of expected credit loss
Expected credit loss refers to the weighted average of credit loss from financial instruments with the risk of default as weight. Credit
loss refers to the difference between all contractual cash flows of the company discounted by the original actual interest rate and
receivable according to contract and all cash flows expected to be received, i.e., the present value of all cash shortfalls.
When measuring the expected credit loss, the longest period that the company needs to consider is the longest term of contract with
respect to which the company faces credit risk (including considering the renewal option). Expected credit loss during the entire
duration refers to the expected credit loss resulting from any and all possible events of default during the entire expected duration of
financial instruments. Expected credit loss within the next 12 months refers to the expected credit loss resulting from possible events
of default under financial instruments within 12 months after the date of balance sheet (or the expected duration, if the expected
duration of financial instrument is less than 12 months), which is part of the expected credit loss during the entire duration.
For accounts receivable, lease receivables, other receivables and contract assets (collectively, “receivables”), the company always
measures their loss provision at the amount equivalent to the expected credit loss during the entire duration. When an individual
financial asset cannot assess the information about expected credit loss with reasonable cost, the company classifies the receivable
portfolios according to the credit risk characteristics and calculates expected credit loss on the basis of portfolio. For re ceivables
classified as risk portfolio, the company calculates the expected credit loss from the aforesaid financial assets based on the historical
credit loss experience and using the provision matrix and other methods, with related historical experience adjusted based on the
specific factors of borrower at the balance sheet date and the assessment of current situation and forecast future economic condition.
Except for accounts receivable, lease receivables, other receivables and contract assets, the company measures the loss provision
for the financial instruments that meet one of the following circumstances at the amount equivalent to expected credit loss within the
next 12 months, and measures the loss provision for other financial instruments at the amount equivalent to expected credit loss
during the entire duration:
A. Such financial instrument only has a relatively low credit risk at the balance sheet date;
B. The credit risk of such financial instrument has not significantly increased since the initial recognition.
Having a relatively low credit risk; If the default risk of a financial instrument is relatively low, the borrower is highly able to
perform its contractual cash flow obligations in short term and the ability of the borrower to perform its contractual cash flow
obligations is not necessarily reduced even if there are adverse changes to the economic situation and operating environment in a
relatively long period, such financial instrument is considered as having a relatively low credit risk.
Significant increase in credit risk: The company determines the relative changes in default risk during the expected duration of a
financial instrument by comparing the default risk of the financial instrument at the balance sheet date and the default risk at the date
of initial recognition, in order to assess whether the credit risk of the financial instrument has been significantly increased.
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When determining whether the credit risk has been significantly increased, the company considers reasonable and well-founded
information readily available without incurring unnecessary additional costs or efforts, including forward-looking information. The
information considered by the company includes:
A. The circumstances in which the debtor fails to pay the principal and interest by the expiry date of contract;
B. Severe deteriorations of external or internal credit ratings of the financial instrument (if any) that have occurred or are expected;
C. Severe deterioration of the business results of the debtor that have occurred or are expected;
D. Existing or expected changes to the technology, market, economic or legal environment that have material adverse effect on the
debtor’s ability to make repayments to this company.
According to the nature of a financial instrument, the company assesses whether the credit risk has been significantly increased based
on individual financial instruments or financial instrument portfolio. When assessing based on financial instrument portfolio , the
company may classify financial instruments based on the common credit risk characteristics.
③Financial assets with respect to which credit impairment has occurred
The company assesses whether the financial assets measured at amortized cost and debt investments at fair value through other
comprehensive income have incurred credit impairment at the balance sheet date. When one or several events that have adverse
effect on the expected future cash flow of a financial asset occur, such financial asset becomes a financial asset with respe ct to which
credit impairment has occurred. The evidence that a financial asset has incurred credit impairment includes the following observable
information:
A. The issuer or debtor is experiencing significant financial difficulties;
B. The debtor has violated a contract, such as default or delinquent in repayment of interest or principal;
C. The company gives the debtor concessions that would otherwise not be made in any circumstances out of consideration for
economy or contract related to the financial difficulties of the debtor;
D. The debtor is highly likely to go bankrupt or conduct other financial reorganization;
E. The financial difficulties of the issuer or debtor have resulted in disappearance of active markets for such financial ass et.
④Presentation of provision for expected credit loss
To reflect the changes in credit risk of a financial instrument since its initial recognition, the company re -measures the expected
credit loss at each balance sheet date, as a result of which the increased or reversed amount of loss provision is charged to the current
profit and loss as impairment loss or gain. For a financial asset measured at amortized cost, the loss provision is credited against the
book value of such financial asset indicated in the balance sheet; for a debt investment that is measured at fair value and whose
changes are charged to other comprehensive income, the company recognizes its loss provision in other comprehensive income,
without charging against the book value of such financial asset.
⑤Write-off
If the company no longer reasonably expects that the contractual cash flow of a financial asset can be recovered in full or in part, the
company directly writes down the book balance of such financial asset. Such write-down constitutes de-recognition of related
financial assets. Such circumstance usually arises when the company determines the debtor has no asset or income source that can
generate sufficient cash flow to repay the written-down amount. However, the written-down financial asset might still be affected by
the enforcement activities related to collection of amounts due by the company.
The written-down financial asset that is subsequently recovered is charged to the profit or loss in the period of recovery as the
reversal of impairment loss.
（8） Equity instruments
The consideration received by the company from issue of equity instruments is charged to the shareholder equity after deduction of
the transaction costs. The shareholder equity is reduced by the consideration and transaction costs paid to repurchase the equity
instruments of the company.
When repurchasing the shares in the company, the shares repurchased are managed as treasury shares and any and all expenses
incurred to repurchase shares are transferred to the costs of treasury shares, while the same are registered at the same time for future
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reference. Treasury shares do not participate in profit distribution and are presented as the item of allowance for shareholder equity in
the balance sheet.
When cancelling treasury shares, the share capital is reduced by the total nominal value of cancelled stock, and the portion of the
costs of treasury shares in excess of the total nominal value is charged against the capital reserve (share capital premium), surplus
reserve and undistributed profits in succession; where the costs of treasury shares are lower than the total nominal value, the capital
reserve (share capital premium) is increased by the portion lower than the total nominal value.
When transferring treasury shares, the capital reserve (share capital premium) is increased by the portion of the transfer income in
excess of the costs of treasury shares; the portion lower than the costs of treasury shares is charged against the capital re serve (share
capital premium), surplus reserve and undistributed profits in succession.
(9) Convertible instruments
① Convertible instruments containing equity component
For convertible instruments issued by the company that are convertible into equity shares and with respect to which the numbe r of
shares issued and the amount of consideration at the time of conversion are fixed, the company treat them as compound instruments
containing liability and equity components.
At the time of initial recognition, the company splits related liability and equity components and first determines the fair value of the
liability component (including fair value of non-equity embedded derivative instruments that might be contained) and then deduct the
fair value of liability component from the fair value of compound instrument and charges results to equities as the value of equity
component. The transaction costs incurred to issue compound instruments are allocated between the liability component and equity
component according to respective ratios of the total issue price.
After the initial recognition, the liability component not designated as at fair value through profit or loss is measured at amortized
cost using the effective interest rate method. The equity component is no longer measured after initial measurement.
When converting a convertible instrument, the company transfers the liability component and equity component to related accounts
of equities. When a convertible instrument is redeemed, the price paid for redemption and transaction costs incurred are allocated to
the equity and liability components. The method for allocating the price and transaction costs is consistent with the allocation method
adopted when this instrument is issued. After allocating the price and transaction costs, their difference with the book value of equity
and liability components is charged to equities if related to equity component or charged to profit and loss if related to liability
component.
② Other convertible instruments containing no equity component
For other convertible instruments issued by the company and containing no equity component, at the time of initial recognition, the
derivative instrument component of the convertible instrument is measured at fair value and the remaining part is treated as the
initially recognized amount of principal debt instrument.
After initial recognition, the derivative instrument component is measured at fair value and the gains or losses resulting from change
in fair value are charged to current profit and loss. The principal debt instruments are measured at amortized cost using the effective
interest rate method.
When converting a convertible instrument, the company transfers the principal debt instrument and derivative instrument compo nent
to the accounts related to equities. When a convertible instrument is redeemed, the difference between the price paid for redemption
and the book value of the principal debt instrument and derivative instrument component is charged to the profit and loss. t
(10) Preferred shares and perpetual bonds
The company, based on the contractual terms of preferred shares and perpetual bonds issued and the economic substance reflected by
them and in light of the definitions of financial assets, financial liabilities and equity instruments, classifies these fina ncial
instruments or their components into financial assets, financial liabilities or equity instruments at the time of initial recognition.
The company treats preferred shares and perpetual bonds issued by it and containing both equity component and liability compo nent
according to the same accounting policies as convertible instruments containing equity component. The company treats preferred
shares and perpetual bonds issued by it and containing no equity component according to the same accounting policies as other
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convertible instruments containing no equity component.
The company charges preferred shares and perpetual bonds issued by it and classifiable as equity instruments to equities at the
amount actually received. Where dividends or interest are distributed during the period of existence, they are treated as profit
distribution. Where preferred shares and perpetual bonds are redeemed according to contractual terms, they are charged against
equities at the redemption price.
11. Inventories
The company shall comply with the disclosure requirements set forth in “Shenzhen Stock Exchange’s Industry Information
Disclosure Guidance No. 1---Listed Companies Engaged in Livestock, Poultry and Aquaculture Businesses”.
（1）Classification of inventories
Inventories are classified into raw materials, packaging materials, products in progress, merchandises in stock, low -value
consumables, goods shipped, outsourced processed supplies, consumptive biological assets and revolving materials.
The specific accounting policy for consumptive biological assets is detailed in “Note V (20) Biological assets”.
（2）Inventory costs and valuation method for inventories shipped:
Inventories are initially measured at the actual cost at the time of acquisition. Inventory costs include purchase cost, processing cost
and other expenditures incurred to bring the inventories to the current location and state. For inventories shipped, costs ar e carried
over using the one-off weighted average method at the end of month.
（3）Basis of determination of net realizable value of inventory and method for accrual of inventory revaluation reserve
At the end of period, when the inventory cost is lower than the net realizable value , the inventory is measured at cost; when the
inventory cost is higher than the net realizable value, the inventory is measured at net realizable value, and the inventory revalua tion
reserve accrues by the difference of the cost over the net realizable value and is charged to the current profit and loss. The net
realizable value refers to the amount of the estimated selling price of inventory minus the costs estimated to incur up to the time of
completion, the estimated selling costs and related taxes and charges in the daily activities.
For inventories that are numerous and have a low unit price, the inventory revaluation reserve accrues by the inventory type. For
inventories having the same or similar end use or purpose and related to the product series produced and distributed in the s ame area
and difficult to valuate separately from other items of such product series, the inventory deprecation reserve accrues on a
consolidated basis; for other inventories, the inventory revaluation reserve accrues by the difference the cost of individual inventory
item in excess of its net realizable value.
At the balance sheet date, if the factors affecting the previously written-down inventory value have disappeared, the written-down
amount is restored and reversed to the extent of amount of previously accrued inventory revaluation reserve, with the reversed
amount charged to the current profit and loss.
（4）Inventory system
The inventory follows the perpetual inventory system.
（5）Amortization method for low-value consumables and packaging materials
Low-value consumables and packaging materials are amortized using the one-off amortization method when requis itioned.
Revolving materials that have large sums and a relatively long service life are amortized using the stage -wise average amortization
method.
12. Contract assets
In the contracts between the company and its customers, the company has the right to collect contract prices for goods transferred and
related services provided to customers, while assuming the performance obligation to transfer the goods or services to customers.
The right of the company to collect consideration for goods or services transferred to its customers (and such right depends upon
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factors other than elapse of time) is presented as contract asset and impairment of contract asset accrues based on the expec ted credit
loss. The right of the company to unconditionally (only dependent upon elapse of time) collect consideration from customers is
presented as receivables.
The obligation of the company to transfer goods or services to customers for consideration received or receivable from its customers
is presented as contract liability. When the company performs its obligation to transfer goods or provide services to customers, the
contract liability is recognized as revenue.
The company presents contract assets and contract liabilities under the same contract as a net amount after mutually offsetting them.
13. Contract cost
（1）Categories and recognition of contract cost
Contract cost includes the incremental cost incurred to acquire contracts and contract performance cost.
The incremental cost incurred to acquire contracts refers to the cost that the company would not incur if the contracts are not acquired
(such as sales commission, etc). If such cost is expected to be recovered, the company recognizes it an asset by treating it as contract
acquisition cost. Other expenditures incurred by the company to acquire a contract other than the incremental cost expected to be
recovered are charged to the current profit and loss as and when incurred.
Where the cost incurred to perform a contract that is outside the scope of inventories or otherwise not subject to other ente rprise
accounting standards and meets all of the following conditions, the company recognizes it as an asset by treating it as contract
performance cost:
①These costs are directly related to a current or expected contract, including direct labor cost, direct material cost, manufacture cost
(or similar costs), costs expressed to be borne by customer and other costs incurred solely due to such contract.
②Such cost has increased the resources to be used by the company for performing its performance obligations in the future;
③Such cost is expected to be recovered.
（2） Amortization and impairment of contract cost
The assets for which contract acquisition cost is recognized and the assets for which contract performance cost is recognized
(hereinafter, “assets related to contract cost”) are amortized on the same basis as recognition of revenue from goods or services
related to such assets and charged to the current profit and loss. They are charged to current profit and loss as and when incurred if
the amortization period is no more than one year.
When the book value of an asset related to contract cost is higher than the difference between the following two items, the c ompany
makes impairment provision for the excess portion and recognizes it as asset impairment loss:
①The remaining consideration that the company expects to receive due to transfer of goods or services related to such asset;
②The cost estimated to be incurred to transfer such related goods or services.
After making the impairment provision, if the factors of impairment in the previous period changed such that the aforesaid difference
of the ① minus ② is higher than the book value of such asset, the asset impairment provision previously made is reversed and
charged to the current profit and loss, provided that the book value of the asset after reversal shall not exceed the book value of such
asset at the reversal date should the impairment provision not have been made.
14. Assets held for sale
(1) Held for sale
When the company recovers the book value a noncurrent asset or disposal group mainly by selling rather than continuously using it,
such noncurrent asset or disposal group is classified as held for sale.
Disposal group refers to a group of assets that are disposed of through sale or otherwise as a whole in a single transaction, and the
liabilities transferred in such transaction that re directly related to these assets.
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The company classifies a noncurrent asset or disposal group that meets both of the following conditions as held-for-sale category:
When the company recovers the book value a noncurrent asset or disposal group mainly by selling rather than continuously using it,
such noncurrent asset or disposal group is classified as held for sale.
①Such noncurrent asset or disposal group is readily available for sale under the current conditions according to the customary
practices of sale of such type of assets or disposal groups in similar transactions;
②The sale is highly likely to occur, i.e., the company has made a resolution on a sale plan, has executed legally binding purchase
agreement with other parties and expects that the sale will be completed within a year.
The company initially and subsequently measures noncurrent assets or disposal groups held for sale at the book value and the net
amount of fair value minus the selling costs, whichever is lower, and recognizes the difference of book value higher than the net
amount of fair value minus selling costs as the asset impairment loss and charges it to the current profit and loss.
(2) Discontinued operations
The company defines a component that meets one of the following conditions and can be separately distinguished and has been
disposed of or classified as held for sale by the company as discontinued operation:
①Such component represents an independent main business or a separate main operating region;
②Such component is part of a related plan for proposed disposal of an independent main business or a separate main operating
region;
③Such component is a subsidiary acquired specifically for resale.
For currently presented discontinued operations, the company presents profit and loss from continuous operations and profit a nd loss
from discontinued operations respectively in the current income statement, and presents information previously presented as profit
and loss from continuous operations in the income statement of comparative period as profit and loss from discontinued operat ions
during the comparable accounting period again.
15. Long-term equity investments
Long-term equity investments refer to equity investments that have control, common control or significant influence over the
investee, including investments in subsidiaries, affiliates and joint ventures. The equity investments whereby the company ha s no
control, common control or significant influence over the investee are accounted for as financial assets available for sale or financial
assets at fair value through profit or loss, with respect to which the accounting policies are detailed in “Note V. (10) Financial
instruments”.
(1) Judgment criteria for common control and significant influence
Common control refers to the control shared by the company over a particular arrangement according to applicable covenants,
provided that the related activities under such arrangement may not be decided without the unanimous consent of participants sharing
the control. Judging whether there is common control disregards the protective rights enjoyed by a participating party. Where the
company and other joint venture parties jointly exert common control over the investee and enjoy the right to the net assets of the
investee, the investee is deemed a joint venture of the company.
Significant influence refers to the power to participate in decision making regarding the financial and business policies of an
enterprise, but not enough to control or jointly control the formulation of these policies with other parties. Where the company is able
to exert significant influence on the investee, the investee is deemed an affiliate of the company. When the company directly or
indirectly through subsidiaries holds more than 20% (inclusive) but less than 50% of the voting shares in the investee, the c ompany is
generally considered as having significant influence over the investee, unless there is conclusive evidence hat the company cannot
participate in the production and business decisions of the investee. When the company holds less than 20% of the voting shares in
the investee, but one or several of the following circumstances exist, the company will give overall consideration to all facts and
circumstances and make judgments about whether it has significant influence or not:
①The representation of the company on the board of directors or similar governing body of the investee;
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②Participation in the financial and business policy making process of the investee;
③Material transactions between the company and the investee;
④Assignment of managers to the investee;
⑤Provision of key technical data to the investee.
（2）Determination of initial investment cost
①Long-term equity investment resulting from business combination
For a long-term equity investment resulting from business combination under common control, the share of the book value of
ownership interest of the combined party in the consolidated financial statements of the ultimate controlling party at the date of
combination is treated as the initial investment cost of the long-term equity investment. The share capital premium in the capital
reserve is adjusted by the difference between the initial investment cost of a long-term equity investment and the book value of
consideration paid; the retained earnings are adjusted if the share capital premium in the capital reserve is insufficient for offsetting
purposes.
For a long-term equity investment resulting from business combination not under common control, the fair values of assets paid out,
liabilities incurred or assumed and equity securities issued by the company to acquire the control over the acquired party at the
purchase date is treated as the initial investment cost of such investment.
②Long-term equity investments acquired by otherwise than business combination
With respect to long-term equity investments acquired by otherwise than business combination, at the time of initial recognition, for a
long-term equity investment acquired by payment in cash, the company treats the purchase price actually paid as the initial
investment cost; for a long-term equity investment acquired by issuance of equity securities, the company treats the fair value of
equity securities issued as the initial investment cost.
(3) Subsequent measurement and profit and loss recognition method
Long-term equity investments whereby the company exerts control over the investee are accounted for using the cost method; a
long-term equity investment in affiliates and joint ventures is accounted for using the equity method, unless such investment meets
the conditions for being held for sale.
①Long-term equity investment accounted for using the cost method
When accounted for using the cost method, the long-term equity investments are valuated at the initial investment cost, with the costs
of long-term equity investments adjusted by the additional or recovered investments. Except for the price actually paid at the time of
acquisition of investment or cash dividends or profits included in the consideration that have already been declared but not yet
distributed, the current income on investment is recognized at the cash dividends or profits declared and distributed by the investee
that the company is entitled to.
②Long-term equity investment accounted for using the equity method
When accounting for using the equity method, the initial investment cost of long-term equity investment is not adjusted if the
investment cost of a long-term equity investment is higher than the company’s share of fair value of identifiable net assets of the
investee at the time of investment; ff the investment cost of long-term equity investment is less than the share of fair value of
identifiable net assets of the investee at the time of investment, the resulting difference is charged to the current non-business income,
while adjusting the cost of long-term equity investment.
When accounting for under the equity method and during the period of holding of a long-term equity investment, the company
recognizes the investment income and other comprehensive income respectively at the share of net gains and losses and other
comprehensive income realized by the investee, while the book value of long-term equity investment is adjusted at the same time; the
share is calculated at the profits or cash dividends declared and distributed by the investee, and the book value of the long-term
equity investment is reduced accordingly; for changes in ownership interest of the investee other than net profits and losses, other
comprehensive income and profit distribution, the company charges its share of them to the capital reserve while adjusting the book
value of the long-term equity investment.
When recognizing the share of changes in net profits and losses, other comprehensive income and other ownership interests realized
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by the investee, the company, based on the fair value of identifiable net assets of the investee at the time of acquisition of investment,
recognizes investment income and other comprehensive income after making necessary adjustments according to the company’s
accounting policies or accounting period; the aforesaid adjustments to the financial statements of the investee shall follow the
principle of materiality. The portion of unrealized profit and loss attributable to the company and arising from internal transactions
between the company and its affiliates and joint ventures is calculated at the ratio that the company is entitled to and then offset at the
time of accounting under the equity method. The unrealized loss from internal transactions, where there is evidence that such loss is
related asset impairment loss, is recognized in full and is not offset.
When recognizing the net losses incurred by the investee that the company shall share, the company recognizes such net losses until
the book value of long-term equity investment and other long-term equities that substantially constitute the net investment in the
investee are written down to zero, In addition, if the company has the obligation to be liable for additional losses of the investee, the
estimated liabilities are recognized according to the expected obligations and charged to the current investment loss. Where the
investee realizes net profits in the subsequent periods, the company resumes recognition of the revenue share after the revenue share
covers the unrecognized share of losses.
（4）Conversion of accounting method for long-term equity investments
①Conversion from fair value measurement to equity method accounting
Where an equity investment originally held in an investee (without control, common control or significant influence) is treated for
accounting according to the financial instrument recognition and measurement standards, and the shareholding ratio is increas ed due
to additional investment or otherwise, thus allowing the company to exert common control or significant influenc e over the investee,
when accounting for using the equity method instead, the company treats the fair value of original equity investment determined
according to the financial instrument recognition and measurement standards plus the fair value of consideration paid to acquire
additional investment as the initial investment cost accounted for using the equity method instead. Where the originally held equity
investment is classified as other equity instrument investment, the accumulated fair value change originally charged to other
comprehensive income shall be transferred to the retained earnings. Then, the initial investment cost derived by the aforesaid
calculation is compared with the share of fair value of identifiable net assets of the investee at the date of additional investment as
calculated and determined at the whole new shareholding ratio after additional investment, with no adjustments to the book va lue of
the long-term equity investment if the former is larger than the latter; if the former is less than the latter, the difference shall adjust the
book value of long-term equity investment and be charged to the current non-business revenue.
②Conversion from fair value measurement or equity method accounting to cost method accounting
For an equity investment originally held in the investee without control, common control or significance and treated for accounting
according to financial instrument recognition and measurement standards, or long-term equity investments originally held in affiliates
or joint ventures, where they become able to exert control over the investee due to additional investments or otherwise, they are
treated as long-term equity investments formed from business combination.
③Conversion from equity method accounting to fair value measurement
Where a long-term equity investment originally held in the investee with common control or significant influence becomes unable to
exert common control or significant influence over the investee due to decreased shareholding ratio as a result of partial disposal or
otherwise, the remaining equity investments are treated according to financial instrument recognition and measurement standar ds
instead, and the difference between the fair value and book value at the date of loss of common control or significant influence is
charged to the current profit and loss. Other comprehensive income originally accounted for using the equity method should be
treated on the same basis as the investee directly disposes of related assets or liabilities when ceasing to be accounted for using the
equity method, while ownership interest recognized due to changes in ownership interest of the investee other than net profit and loss,
other comprehensive income and profit distribution is transferred in full to the current investment income when ceasing to be
accounted for using the equity method.
④Conversion from cost method to equity method or fair value measurement
Where control of an investee is lost due to disposal of part of equity investments or otherwise, when preparing individual financial
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statements, the remaining equities after disposal, if able to exert common control or significant influence over the investee, are
accounted for using the equity method instead, and such remaining equities are adjusted as if they have been accounted for us ing the
equity method as of the time of acquisition. Where the remaining equities after disposal cannot exert common control or significant
influence over the investee, they are measured at fair value according to the financial instrument recognition and measurement
standards, and the difference between their fair value and book value at the time of loss of control is charged to the current
investment income.
(5) Impairment of long-term equity investments
The company judges at the balance sheet date whether there is any indication of impairment of long-term equity investments and, if
yes, conducts impairment test as if they are individual long-term investments. If the results of impairment test indicate the
recoverable amount of a long-term equity investment is lower than its book value, the impairment provision is made at the difference
and charged to the profit and loss.
(6) Disposal of long-term equity investments
When disposing of a long-term equity investment, the difference between its book value and price actually acquired is charged to the
current profit and loss. For a long-term equity investment accounted for using the equity method, when disposing such investment in
full, related other comprehensive income originally accounted for under the equity method should be treated on the same basis as the
investee directly disposes of related assets or liabilities, and ownership interest recognized due to changes in ownership inte rest of the
investee other than net profit and loss, other comprehensive income and profit distribution should be transferred in fu ll to the current
investment income when ceasing to be accounted for using the equity method; in case of partial disposal and remaining equitie s still
accounted for using the equity method, the other comprehensive income originally recognized should be tre ated on the same basis as
the investee directly disposes of related assets or liabilities and carried over pro rata, while ownership interest recognize d due to
changes in ownership interest of the investee other than net profit and loss, other comprehensive income and profit distribution
should be carried over to the current investment income pro rata.
When the enterprise partially disposes of long-term equity investments held and conversion of accounting method occurs, related
accounting treatment is as shown in the aforesaid provisions regarding conversion of accounting methods for long-term equity
investments.
16. Investment properties
Measurement model for investment properties
Measurement using the cost method
Depreciation or amortization method
(1) Classification of investment properties
Investment property refers to real property held to earn rent or for capital appreciation or both, including leased land use right, land
use right held for transfer after appreciation and leased buildings, etc.
(2) Measurement of investment properties
Purchased investment property is initially measured at the cost at the time of acquisition, which consists of the purchase price, related
taxes and expenses directly attributable to such asset; the costs of investment property built by the company consist of the
expenditures required to bring the investment property to the intended state of usability. The subsequent expenditures relate d to
investment properties are charged to the costs of investment properties if the economic benefits related to such asset are highly likely
to flow to the company and its costs can be reliably measured. Other subsequent expenditures are charged to the current profit and
loss as and when incurred.
The company measures investment properties using the cost model, i.e., presenting them in the balance sheet at the cost minus
accumulated depreciation, amortization and impairment provision. The costs of investment properties are depreciated or amortized
using the straight-line method over the service life after deduction of the estimated net residual value and accumulated impairment
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provision, unless the investment properties meet the conditions for being held for sale. The depreciation policy for leased buildings is
the same as that for house buildings in the fixed assets, and the amortization policy for leased land is the same as that for land use
right in the intangible assets.
(3) Impairment of investment properties
At the balance sheet date, the company examines investment properties for any indication of impairment and conducts impairment
tests when there is any indication of impairment, and makes impairment provision at the difference of recoverable amount lowe r than
the book value, which will not be reversed in subsequent accounting periods once made.
17. Fixed assets
(1) Conditions for recognition
Fixed assets of the company are tangible assets held by the company for production of commodities, provision of services,
leasing or business management and that have a service life of more than one accounting year. A fixed asset is recognized when the
economic benefits related to such fixed asset are highly likely to flow to the company and the cost of such fixed asset can be reliably
measured. Fixed assets are initially measured at actual cost at the time of acquisition. The initial cost of a purchased fixed asset
includes purchase price, related taxes and expenditures incurred to bring such asset to the intended usable state and attributable to
such asset. The initial cost of a self-built fixed asset is determined by the necessary expenditures incurred to bring such asset to the
intended usable state. The subsequent expenditures related to a fixed asset including expenditures related to replacement of a
particular component of the fixed asset, are capitalized and charged to the costs of fixed assets if the economic benefits related to
such fixed asset are highly likely to flow to the company and its costs can be reliably measured, while deducting the book va lue of
the replaced portion; expenditures related to daily maintenance of fixed assets are charged to current profit and loss as and when
incurred.
(2) Depreciation method
Category Depreciation method Depreciation period Residual value rate Annual depreciation rate
Houses and buildings Straight-line method 5-40 years 5% 2.38％－19％
Machinery and
Straight-line method 3-15 years 5% 6.33%－ 31.67%
equipment
Transport equipment Straight-line method 3-10 years 5% 9.50％－31.67％
Others Straight-line method 3-5 years 5% 19.00％－31.67％
A fixed asset is depreciated over its estimated service life using the straight-line method at its entry value minus the estimated net
residual value. For a fixed asset with respect to which impairment provision accrues, the depreciation amount is determined in the
future period at the book value net of impairment provision and according the remaining service life. The service lives, estimated net
residual value rates and annual depreciation rates of various fixed assets are shown in the above table.
The company determines the service life and estimated net residual value of a fixed asset based on the nature and usage of the fixed
asset, and reviews the service lives, estimated net residual values and depreciation methods for fixed assets at least at the end of each
year.
(3) Impairment of fixed assets
At the balance sheet date, the company accrues fixed asset impairment provision by the difference of the recoverable amount of a
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fixed asset lower than its book value and charges it to the current profit and loss if its recoverable amount becomes lower than the
book value due to continuous decline of market prices, technological obsolescence, damage, long-term idleness or otherwise. The
fixed asset impairment loss, once recognized, will not be reversed in the subsequent accounting periods.
(4) Disposal of fixed assets
The company derecognizes a fixed asset if it is in the state of disposal or such fixed asset is expected not to generate economic
benefits through use or disposal. The difference between net proceeds from scrapping or disposal of a fixed asse ts and its book value
is charged to profit and loss at the date of scrapping or disposal.
18. Construction in progress
(1) Categories of construction in progress
Construction in progress mainly consists of self-operated works, contracted-out works and equipment installation works. The project
costs of construction in progress are determined by the expenditures actually incurred, and self-operated works are measured at the
direct materials, direct wage and direct construction costs; contracted-out works are measured at the project price payable; the project
costs of equipment installation works are determined by the value of equipment installed, instillation costs and the expenditures
incurred by project commissioning, etc. The costs of construction in progress also include the borrowing costs and exchange gains or
losses that should be capitalized.
(2) Carry-over of construction in progress to fixed assets
A fixed asset being built is transferred to fixed assets when it reaches the intended usable state. Where a fixed asset built reaches the
intended usable state but has not yet completed the final settlement of accounts, its cost should be determined at estimated value and
its depreciation starts from the next month; the original estimated value is not adjusted at the actual cost until after the completion
settlement, but without adjusting the originally accrued depreciation amount.
(3) Impairment of construction in progress
At the balance sheet date, the company examines construction in progress for any indication of impairment and conducts impairment
tests when there is any indication of impairment, and makes impairment provision at the difference of recoverable amount lowe r than
the book value. The recoverable amount of a work in progress is determined by the higher of the fair value of asset minus disposal
costs and the present value of estimated future cash flows of the asset. The impairment loss of construction in progress, onc e
recognized, will not be reversed in subsequent accounting periods.
19. Borrowing costs
Borrowing costs refer to interest and other related costs incurred by the company due to borrowings, including loan interest,
amortization of premium or discount, auxiliary expenses and exchange difference resulting from foreign-currency borrowings.
(1) Principles for capitalization of borrowing costs
The borrowing costs incurred by the company that can be directly attributed to the acquisition or production of assets eligib le for
capitalization are capitalized and charged to the related asset cost; other borrowing costs are all recognized as financial expenses as
and when incurred. Assets that meet the conditions for capitalization refer to fixed assets, inventories and other assets tha t can reach
the intended usable or marketable state only after a considerably long period of acquisition or production activities.
(2) Capitalization period of borrowing costs
The capitalization period refers to the period from the commencement time of capitalization of borrowing costs to the time of
cessation of capitalization, excluding the period during which the capitalization of borrowing costs is suspended. The borrowing
costs begin being capitalized when the capital expenditure and the borrowing costs have been incurred and the acquisition or
production activities required for the assets to reach the intended usable or marketable state have commenced. When the assets
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acquired or produced that meet the conditions for capitalization reach the intended usable or marketable state, the borrowing costs
cease to be capitalized.
Where an asset that meets the conditions for capitalization is abnormally interrupted in the process of acquisition or produc tion and
the period of interruption continues for more than 3 months, the capitalization of borrowing costs is suspended u ntil after the asset
acquisition or production activities recommence.
(3) Calculation method for capitalized amount of borrowing costs
For the special borrowings borrowed to acquire or produce an asset that meets the conditions for capitalization, the capitalized
amount of the borrowing costs is determined based on the interest expense actually incurred in the period of special borrowing minus
the interest income acquired from depositing of the unused borrowed funds in the bank or the amount of investment income acquired
on temporary investment.
For general borrowings used to acquire or produce an asset that meets the conditions for capitalization, the interest amount on the
general borrowings to be capitalized is calculated and determined based on the capital expenditure weighted average of the portion of
accumulated asset expense in excess of the special borrowing multiplied by the capitalization rate of the general borrowings used.
The capitalization rate is calculated based on the weighted average interest rate of general borrowing.
20. Biological assets
（1） Conditions for recognition of biological assets
Biological assets refer to living animals and plants and a biological asset is recognized when the following conditions are met at the
same time:
①The company owns or control such biological asset due to past transactions or events;
②Economic benefits or service potential related to such biological asset are highly likely to flow to the company;
③The costs of such biological asset can be reliably measured.
（2） Classification and costing of biological assets
The company’s biological assets include consumptive biological assets and productive biological assets. Biological assets are all
measured at actual cost and are subjected to cost accounting by distinguishing categories and batches. Costs of a biolog ical asset refer
to necessary expenditures attributable to such asset and incurred to bring such asset to the makeable stage (refers to consumptive
biological assets) or intended purpose of production and operations such as seedling cost, feed cost, drug c ost, labor cost, fuel and
power cost, depreciation charges, lease expenses, other agricultural manufacturing costs, including borrowing costs eligible for
capitalization.
①Consumptive biological assets
Consumptive biological assets refer to biological assets held for sale, and the company’s consumptive biological assets mainly
include suckling piglets, nursery piglets, fattening pigs, breeding chick’s (duck)’s eggs, baby chicks (ducks) and commercial
generation broilers (meat ducks).
A. Suckling piglets refer to piglets from date of birth to date of weaning, and costs of suckling piglets mainly include depreciation
charges of breeding pigs and feeding costs at such stage.
B. Nursery piglets refer to piglets from the date of weaning to date of transfer from nursery pigpen, and costs of nursery piglets
mainly include costs of suckling piglets and feeding costs at the nursing stage.
C. Fatting pigs refer to pigs from the date of transfer from nursery pigpen to the date of slaughter, and costs of fattening pigs include
costs of nursery piglets and feeding costs at the fattening stage.
D. Eggs of breeding chicks (ducks): costs of breeding chicks’ (ducks’) eggs include depreciation charges of mature egg-laying
breeding chicks (ducks) and feeding costs of mature egg-laying breeding chicks (ducks).
E. Baby chicks (ducks): the costs of baby chicks(ducks) include costs of breeding chicks’ (ducks’) eggs used to hatch baby ch icks
(ducks) and fixed asset depreciation, labor costs and fuel and power costs at the hatching stage, etc.
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F. Commercial generation broilers (meat ducks): costs of commercial generation broilers (ducks) include costs of baby chicks (ducks)
and feeding costs of commercial generation broilers (ducks).
②Productive biological assets
Productive biological assets refer to the biological assets held for production of agricultural products, including immature productive
biological assets and mature productive biological assets. The productive biological assets of the company mainly include breeding
pigs and breeding chicks (ducks).
A. Breeding pigs: divided into immature breeding pigs and mature breeding pigs based on whether the intended production and
operation purposes are achieved. Achieving the intended production and operation purposes means breeding pigs enter the normal
production period and can continuously and stably produce conforming piglets. Costs of immature breeding pigs include seedlin g
costs and feeding costs at the growth stage. After they become mature, they are transferred to the mating pigpen for production of
piglets and transferred in accounting terms to the category of mature breeding pigs, before being accounted for using asset c ard
established for individual pigs. The subsequent expenditures incurred after achieving the intended production and operation purposes
such as feeding costs are all charged to the costs of piglets or semen but no longer charged to costs of breeding pigs.
B. Breeding chicks(ducks): divided into immature breeding chicks (ducks) and mature breeding chicks (ducks) based on whether
intended production and operation purposes are achieved. Achieving the intended production and operation purposes means breed ing
chicks(ducks) enter the normal production period and can continuously and stably produce conforming hatching eggs. Costs of
immature breeding chicks (ducks) include seedling costs and feeding costs at the growth stage. After they become mature, they are
transferred to the egg-laying henhouse for production of hatching eggs and transferred in accounting terms to the category of mature
breeding chicks(ducks), before being accounted for using asset card established for individual batches. The subsequent expend itures
incurred after achieving the intended production and operation purposes such as feeding costs are charged to the costs of hatching
eggs but no longer charged to costs of breeding chicks (ducks).
（3） Depreciation of biological assets
For productive biological assets that have achieved the predefined purpose of production and operation (i.e., mature productive
biological assets), the company determines their service life, estimated net residual value and depreciation methods (depreciation
methods including straight-line method and units-of production method) based on their nature, usage and expected way of realization
of related economic benefits, and reviews the service life, estimated net residual value and depreciation methods of productive
biological assets at least at the end of year, such that any difference with the original estimates is treated as accounting estimate
change. The service lives, estimated net residual values and depreciation methods of mature productive biological assets of the
company are as follows:
Category Estimated service life (or production Estimated net residual value
output)
Breeding sows of generations other than 36 months 500-1400 Yuan/pig
three-way crossbred sows
Three-way crossbred sows 24 months 500-1400 Yuan/pig
Breeding boars 18 months 500-1400 Yuan/pig
Breeding hens 155 eggs/90 eggs (molting) 25 Yuan/hen
Breeding ducks 245 eggs/120 eggs (molting) 30 Yuan/hen
（4） Impairment of biological assets
Consumptive biological assets are measured at the lower of book value and net realizable value, and productive biological ass ets are
measured at the lower of book value or recoverable amount. At least at the end of each year, the company examines its biological
assets for any indication of impairment, and accrues the revaluation reserve for consumptive biological assets or impairment
provision for productive biological assets by the difference of the net realizable value or recoverable amount lower than book value
and charges it to the current profit and loss if there is conclusive evidence that the net realizable value of consumptive biological
assets or recoverable amount of productive biological assets is lower than its book value.
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If the factors affecting the impairment of consumptive biological assets have disappeared, the written-down amount should be
restored and reversed to the extent of amount of previously accrued revaluation reserve, with the reversed amount charged to the
current profit and loss. The impairment provision for productive biological assets, once accrued, will not be reversed in subsequent
accounting periods.
The company shall comply with the disclosure requirements set forth in “Shenzhen Stock Excha nge’s Industry Information
Disclosure Guidance No. 1---Listed Companies Engaged in Livestock, Poultry and Aquaculture Businesses”.
21. Right-of-use assets
At the commencement date of a contract, the company assesses whether the contract is a lease or conta ins lease according to the
following criteria:
（1）Whether the contract involves use of an identified asset.
（2） Whether the lessee has the right to receive almost all economic benefits derived from use of the identified asset within the
period of use;
（3）Whether the lessee has the right to direct the use of the identified asset during such period of use.
Where a contract contains multiple individual leases, the lessor and lessee split up the contract and conduct accounting trea tment of
each individual lease. Where a contract contains lease and non-lease parts, the lessee and lessor separate the lease parts from the
non-lease parts. When separating the lease part from the non-lease part contained in the contract, the lessee apportions the contract
consideration in proportion to the relative ratios of the sum of individual prices of lease parts and individual parts of non-lease parts;
the lessor apportions the contract consideration according to the provisions of the accounting policies described in “Note V. (33)
Revenue” regarding apportionment of transaction price. However, for lease of land and buildings and lease of equipment in which
the company acts as the lessee, the company chooses not to separate the lease parts from the non-lease parts contained in the contract
and combines various lease parts and non-lease parts related thereto into lease.
The company has chosen not to recognize right-of-use assets or lease liabilities for short-term leases (leases each with a term of no
more than 12 months) and low-value asset leases, and charges related lease payments to the current profit or loss or related asset cost
using the straight-line method over each period during the lease term. Right-of-use assets or lease liabilities are recognized for other
identified lease contracts.
Right-of-use asset refers to the right of the company to use leased assets within the lease term as the lessee. Right-of-use assets are
initially measured at cost, which includes the initially measured amount including lease liabilities, lease payments paid at or before
the commencement date of the lease term (net of lease incentive-related amounts enjoyed), initial direct costs incurred and costs
expected to incur to dismantle and remove the leased assets, restore the site of the leased assets or restore the leased asse ts to the
condition set forth in the lease terms.
The company depreciates right-of-use assets using the straight-line method. Where it can be reasonably determined that the
ownership of the leased asset will be acquired upon the expiration of the lease term, the compa ny depreciates the leased asset within
the remaining service life of the leased asset. Otherwise, the leased asset is depreciated within the lease term and the rema ining
service life of the leased asset, whichever is shorter. Impairment provision is accrued for right-of-use assets according to the
accounting policy described in “Note V. (24) Asset Impairment”.
22. Intangible assets
Intangible assets refer to the identifiable nonmonetary assets owned or controlled by the company without physical form.
①Valuation method for intangible assets
The company’s intangible assets mainly include land use right, trademark license, patent and software, etc. An intangible ass et is
recognized only when economic benefits related to it is highly likely to flow to the company and its cost can be reliably measured.
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Intangible assets are measured initially at cost and the company analyzes and judges the service life of an intangible asset when
acquiring it. An intangible asset with a limited service life is amortized using the straight-line method; intangible assets with
uncertain service life are not amortized.
②Determination of service life of an intangible asset
The service life of an intangible assets is determined by the period specified by laws and regulations, if any; or by the period of
benefit specified in the related contract if there is no period specified by laws and regulations; or by the reasonably estimated service
life if there is no period specified by laws and regulations or contracts and the economic service life can be reasonably estimated. The
estimated service lives and amortization methods of intangible assets of the company are presented as follows:
Item Estimated service life Basis Amortization method
Land use right 40-50 years Valid period stipulated by law Straight-line method
Patents 10 or 20 years Valid period stipulated by law Straight-line method
Trademarks 10 years Valid period stipulated by law Straight-line method
Other office software 3 years Reasonable estimation Straight-line method
③Judgment criteria for intangible assets with uncertain service life
The company judges land use rights held by overseas subsidiaries as intangible assets with uncertain service life.
④Impairment of intangible assets
At balance sheet date, the company examines its intangible assets for any indication of impairment, and should conduct impairment
tests when there is any indication of impairment, and makes impairment provision at the difference of the recoverable amount lower
than the book value, with the recoverable amount determined at the higher of fair value of intangible asset minus disposal costs and
the present value of the estimated future cash flows from the intangible asset; the impairment loss, once accrued, will not be reversed
in subsequent accounting periods.
(2) Accounting policy on internal R&D expenditures
The company divides its R&D projects into the research phase and development phase according to the following criteria: the phase
of original, planned investigation and research activities conducted to acquire and understand new scientific or technological
knowledge is determined as the research phase, which is planned and exploratory, etc; the phase where research findings or other
knowledge are applied to a particular plan or design before commercial production or use in order to produce new or substantially
improved materials, devices or products is determined as the development phase, which is characterized by specificity and hig h
likelihood to form achievements.
The expenditures at the research phase are charged to the current profit and loss as and when incurred. The expenditures at the
development phase can be capitalized only when all of the following conditions are met at the same time, otherwise charged to the
current profit and loss as and when incurred.
①The completion of such intangible asset to make it usable or sellable is technically feasible;
②There is an intention to complete, use or sell such intangible asset;
③The way the intangible asset generates economic benefits consists of the ability to prove there is a market for products produced
using such intangible asset or a market for the intangible asset itself, provided that if the intangible asset is to be used internally, its
usefulness should be demonstrated;
④There are sufficient technical, financial and other supports to complete the development of such intangible asset and there is ability
to use or sell such intangible asset;
⑤The expenditure attributable to the development phase of such intangible asset can be reliably measured.
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23. Goodwill
For goodwill formed from business combination not under common control, its initial cost is the difference of the combination cost
larger than the share of fair value of identifiable net asses of the acquired party acquired in the combination.
The company does not amortize goodwill and presents it in the balance sheet at cost minus accumulated impairment provision.
Goodwill is transferred out at the time of disposal of its related asset group or combination of asset groups, and charged to the current
profit and loss.
24. Impairment of long-term assets
With respect to fixed assets, construction in progress, intangible assets, productive biological assets and investment proper ties
measured using cost model, long-term equity investments, right-of-use assets, goodwill and other assets (except for inventories,
deferred income tax assets and financial assets), the company determines at the balance sheet date whether there is any indic ation of
impairment based on internal and external information.
The company conducts impairment tests for assets for which there is indication of impairment, and estimates the recoverable amount
of the asset. In addition, regardless of indication of impairment, the company conducts impairment costs for goodwill formed from
business combinations, intangible assets not yet reaching the usable state and intangible assets with uncertain service life at least at
the end of each year. For goodwill, the company allocates the book value of goodwill according to how related asset groups or
combination of asset groups can benefit from synergistic effects of business combinations, on which basis it conducts goodwill
impairment tests.
The recoverable amount is the fair value of an asset (or asset group or combination of asset groups, the same below) minus the
disposal costs and the present value of anticipated future cash flow from the asset, whichever is higher. An asset group comprises
assets related to creation of cash inflows and is the determinable smallest asset portfolio, cash inf lows from which are basically
independent from other assets or asset groups. The fair value of an asset is determined based on the price of sales agreement in arms’
length transaction. If there is no sales agreement but an active market for the asset, the fair value is determined by the bid price of the
buyer of such asset. If there is no sales agreement or active market for the asset, the fair value of the asset is estimated based on the
best available information. Disposal costs include legal costs, related taxes and handling costs related to asset disposal and direct
costs incurred to bring the asset to the marketable state. The present value of estimated future cash flows from an asset is determined
according to the estimated future cash flows generated during the continuous use of the asset and at the time of final disposal as
discounted using an appropriate pretax discounting rate.
If the results of impairment test indicate that the recoverable amount of an asset is lower than its book value, the asset impairment
provision is made and charged to the current profit and loss. The impairment loss related to an asset group or combination of asset
groups is first offset against the book value of goodwill allocated to such asset group or combination of asset groups before being
offset against the book value of other assets pro rata according to the percentage of book value of other assets in the asset group or
combination of asset groups other than goodwill, but the book value of various assets after offsetting may not be lower than the
highest of the fair value of such asset minus disposal costs, the present value of estimated future cash flows from such asse t and zero.
The aforesaid asset impairment loss, once recognized, will not be reversed in the subsequent accounting periods.
25. Long-term unamortized expenses
Long-term unamortized expenses account for various costs that have occurred and have an amortization period of more than one year.
The long-term unamortized expenses are recorded at the actually incurred amount and are amortized averagely over the period of
benefit using the straight-line method, and presented at the net amount of actual expenditure minus accumulated amortization. If a
long-term unamortized expense item cannot benefit the subsequent accounting periods, the amortized value of such item that has not
yet been amortized is transferred in full to the current profit and loss.
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26. Fair value measurement
Except as otherwise specifically stated, the company measures fair value according to the following principles:
Fair value refers to the price to be received for sale of an asset or to be paid for transfer of a liability in orderly transactions occurring
between market participants at the date of measurement.
When estimating fair value, the company considers characteristics considered by market participants when pricing related assets or
liabilities at the date of measurement (including the condition and location of asset and restrictions on sale or use of asse t, etc), and
employs valuation techniques that are applicable under current circumstances and are supported by sufficient available data and other
information. The valuation techniques used mainly include market approach, income approach and cost approach.
27. Employee compensation
(1) Accounting treatment method for short-term compensation
Employee compensation is remuneration or compensation of various forms given by the group to acquire services provided by
employees or to terminate employment relationship. Employee compensation includes but not limited to short-term employee
compensation, post-employment benefits, termination benefits and other long-term employee benefits. The benefits provided by the
company to spouses, children, dependants, dependents of deceased employees and other bene ficiaries of employees are also
employee compensation.
Short-term compensation comprises wage, bonus, allowance and subsidy, employee benefits, medical insurance costs, maternity
insurance costs, industrial injury insurance costs, housing fund, trade union outlays, employee education expenditure and
non-monetary benefits, etc. The company recognizes short-term employee compensation actually incurred as liabilities during the
accounting period in which the employees provide services to the company and charge s it to the current profit and loss or related
asset cost. Of them, the non-monetary benefits are measured at fair value.
(2) Accounting treatment method for post-employment benefits
Post-employment benefit plans consist of defined contribution plan and defined benefit plan, of which the defined contribution plan
is a post-employment benefit plan under which the company no longer assumes any further payment obligations after contributing
fixed fees to independent funds; the defined benefit plan is post-employment benefit plan other than the defined contribution plan.
①Defined contribution plan
The company’s defined contribution plan mainly comprises basic endowment insurance, unemployment insurance and etc, and
recognizes them as liabilities at the payable amount during the accounting period in which the employees provide services to the
company and charges them to related asset costs or the current profit and loss.
②Defined benefit plan
Based on the expected accumulated benefit unit method, the company estimates related demographic variables and financial
variables using unbiased and mutually consistent actuarial assumptions, and measures obligations resulting from the defined benefit
plan, before recognizing the present value after discounting as a defined benefit plan liability.
The company attributes the benefit obligations arising from defined benefit plan to the period in which employees provide services,
and charges the interest expenses that are service cost and defined benefit plan liabilities to the current profit and loss or related asset
cost; charges the changes arising from the defined benefit plan liabilities re-measured to other comprehensive income, which are not
allowed to reverse to profit and loss in subsequent accounting periods, but these amounts recognized in other comprehensive income
can be transferred to the extent of equities.
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(3) Accounting treatment method for termination benefits
If the employment relationship with any employee is terminated before the expiration of the employment contract or a suggestion
concerning compensation is provided to encourage the employees to voluntarily accept the job displacement, the liabilities resulting
from compensation for termination of employment relationship with employees are recognized and charged to the current profit
and loss, when the company can not unilaterally revoke the termination benefits provided due to the employment relationship
termination plan or the separation suggestion or the company recognizes the costs related to the reorganization involving pay ment of
termination benefits, whichever occurs earlier.
(4) Accounting treatment method for other long-term employee benefits
Other long-term employee benefits provided by the company to its employees are treated for accounting purposes according to the
defined contribution plan if they comply with the defined contribution plan. Otherwise, such benefits are treated for accounting
purposes according to the defined benefit plan.
28. Lease liabilities
The identification and splitting of lease contracts are detailed in “Note V. (21) Right-of-use assets”.
Apart from short-term leases and low-value asset leases, this group initially measures the lease liabilities at the commencement date
of lease term at the present value of the lease payments not yet paid at such date, with the discount rate being the interest rate implicit
in lease. Where the interest rate implicit in lease cannot be determined, the incremental borrowing interest rate is used as the discount
rate. The company calculates the interest expense on lease liabilities in each period of the lease term at a fixed periodic rate and
charges it to the current profit or loss or related asset cost. Variable lease payments not included in measurement of lease liabilities
are charged to current profit or loss or related asset cost as and when actually incurred. At the commencement date of lease term, the
company re-measures its lease liabilities at the present value of the changed lease payments in the following circumstances:
(1) The payable amount estimated based on the remaining value of guarantee changes;
(2) The index or ratio used to determine the lease payments changes;
(3) The company’s assessment results of purchase option, renewal option or option to terminate lease change or the actual exe rcise of
the renewal option or lease termination option is inconsistent with the original assessment results.
Where the lease liabilities are re-measured, the company adjusts the book value of the right-of-use asset accordingly. Where the book
value of a right-of-use asset has adjusted to be zero but the lease liabilities still need to be further adjusted downwards, the company
charges the remaining amount to the current profit or loss.
29. Estimated liabilities
Estimated liabilities are liabilities that might result from contingencies, including anticipated liabilities resulting from provision of
external guarantees, pending litigations, product quality assurance and reorganization obligation, etc.
(1) Criteria for recognition of estimated liabilities
Except for contingent liabilities assumed in business combination not under common control, if an obligation incurred by the
company is related to contingencies and meets the following conditions at the same time, the company recognizes such obligation as
estimated liability:
①Such obligation is a present obligation of the company;
②The performance of such obligation is highly likely to result in outflow of economic benefits from the company;
③The amount of such obligation can be reliably measured.
(2) Measurement method for estimated liabilities
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Estimated liabilities are initially measured at the best estimate of expenditure required to perform the related present obligations 。
Where the impact of the time value of money is significant, the estimated liability is determined at an amount after discount ing the
estimated future cash flows. When determining the best estimate, the company considers the risks related to contingencies,
uncertainty and time value of currency and other factors. Where there is a continuous range for the required expenditure and the
possibility of occurrence of various results within such range is the same, the best estimate is determined at the median of such range;
in other cases, the best estimate is treated as follows:
①Determined by the most possible incurred amount if contingencies involve a single item;
②Determined by calculating according to various possible results and related probabilities if contingencies involve multiple items.
The company at the balance sheet date reviews book value of estimated liabilities and adjusts such book value according got the
current best estimate.
30. Share-based payment
The share-based payment of the company is a transaction in which the company grants equity instruments or assumes liabilities
determined based on equity instruments in exchange for services provided by its employees or other parties.
（1）Classification of share -based payment
Share-based payment consists of share-based payment settled in equities and share-based payment settled in cash.
（2） Related accounting treatment for implantation of share -based payment plan
①Share-based payment settled in equities
When the company exchanges shares or other equity instruments with services provided by employees, they are measured at the f air
value of equity instruments granted to employees at the grant date. For share-based payment transactions in which immediate
exercise after grant is possible, the company charges them to the related costs or expenses at the fair value of equity instr uments at
the grant date and increases the capital reserve accordingly. For share-based payment transactions in which exercise can be made
only after completing the services or meeting the specified performance conditions within the vesting period after grant, the company
at each balance sheet date within the vesting period makes the best estimate of the number of exercisable equity instruments based on
the latest acquired subsequent information such as changes in number of exercising employees, on which basis to charge the
currently acquired services to related costs or expenses at fair value of equity instruments at the grant date, and charges them to
capital reserve accordingly.
When the company receives services but without settlement obligation, and what’s granted to employees are equity instruments of
the ultimate controlling party of the company or subsidiaries controlled by it other than the company, the company treats such
share-based payment plan as share-based payment settled in equities.
②Share-based payment settled in cash
For share-based payment settled in cash, when the company delivers cash or other assets determined based on shares or other equity
instruments in exchange for services provided by employees, the price of services received in exchange is measured at the fair value
of liabilities determined based on the related equity instruments. For share-based payment transactions in which immediate exercise
after grant is possible, the company charges them to the related costs or expenses at the fair value of liabilities assumed at the grant
date and increases the liabilities accordingly. For share-based payment transactions in which exercise can be made only after
completing the services or meeting the specified performance conditions within the vesting period after grant, the company at each
balance sheet date within the vesting period charges the currently acquired services to costs or expenses at the amount of fa ir value of
liabilities assumed based on the best estimate of the exercisable circumstance and charges them to liabilities accordingly. At each
balance sheet date and settlement date before settlement of related liabilities, the company re-measures the fair value of liabilities and
charges its changes to profit and loss.
When the company receives services and has the settlement obligation, and what’s granted to employees are equity instruments of the
ultimate controlling party of the company or subsidiaries controlled by it other than the company, the company treats such
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share-based payment plan as share-based payment settled in cash.
31. Unearned premium reserve
Unearned premium reserve refers to a reserve accrued by financing guarantee companies for financing liabilities not yet terminated.
The financing guarantee company subordinate to the company accrues unearned premium reserve at 50% of the guarantee fee
revenue of the year in the period of recognition of premium revenue; accrues unearned premium reserve as adjustment to the
premium revenue and recognizes the liabilities for unearned premium reserve.
Financing guarantee companies at the balance sheet date recalculate and determine the difference between the amount of unearned
premium reserve and the balance of accrued unearned premium reserve according to the aforesaid provisions and adjust the balance
of unearned premium reserve.
32. Guarantee indemnity reserve
Guarantee indemnity reserve refers to a reserve accrued by financing guarantee company for its liability to pay indemnities to
beneficiaries when the guaranteed person is unable to repay debts when due under a financing guarantee contract not yet terminated.
The financing guarantee company subordinate to the company accrues guarantee indemnity reserve at 1% of the balance of guarantee
liability at the end of the year in the period of recognition of financing guarantee contract revenue. When the accumulated amount of
guarantee indemnity reserve reaches 10% of the balance of guarantee liability in the year, the reserve accrues at difference while
recognizing the accrued guarantee indemnity reserve as liabilities.
The accumulation of guarantee indemnity reserve is based on the financial condition, production or living environment of the
guaranteed person to conduct adequacy test of the balance of accrued guarantee indemnity reserve, with additional accrual to be
made at the difference in case of insufficiency, but the guarantee indemnity reserve is not adjusted if the balance of relate d insurance
liability reserve recognized through recalculation under the financing guarantee contract is lower than the balance of related
insurance liability reserve already recognized at the date of adequacy test.
33. Revenue
Accounting policies adopted for revenue recognition and measurement
Revenue refers to the total inflows of economic benefits formed by the company in its day-to-day activities that would result in
increases in shareholder equity and are unrelated to capital invested by shareholders.
(1) General principles for revenue recognition
The company recognizes its revenue when having performed its performance obligations in contract, i.e., the customer acquires the
control of related goods or services.
Where a contract contains two or more performance obligations, the company allocates the transaction price to each individual
performance obligation according to the relative proportions of separate selling prices of goods or services as promised by each
individual performance obligation at the contract commencement date and then measures the revenue at the transaction price
allocated to each individual performance obligation.
The transaction price is the amount of consideration that the company expects to have the right to charge due to transfer of goods or
services to its customers, excluding amounts charged on behalf of third parties. The transaction prices recognized by the company do
not exceed the amounts with respect to which the accumulated recognized revenue is extremely likely not to be significantly reversed
at the time of elimination of related uncertainties. The amounts expected to be returned to customers are treated as liabilities for
return of goods and are not charged to the transaction prices. Where a contract contains a significant financing component, the
company determines the transaction price at the payable amount t hat the customer would pay in cash should the customer have
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acquired the control of the goods or service, with the difference between such transaction price and the contract consideration to be
amortized using the effective interest rate method during the term of the contract. At the commencement date of a contract, if it is
estimated that the interval between the customer’s acquisition of control of goods or services and the customer’s payment of price is
no more than one year, significant financing component existing in the contract is not considered.
When meeting one of the following conditions, a performance obligation is one that should be performed within a particular pe riod,
otherwise it is a performance obligation that should be performed at a particular point in time:
①The customer has acquired and consumed the economic benefits brought about by performance of the company when the company
performs the contract;
②The customer can control the goods in progress during the performance of the company;
③The goods produced during the performance of the company have irreplaceable purposes and the company has the right to charge
amounts for the portion of performance completed so far in cumulative terms within the entire term of contract.
For a performance obligation performed within a particular of period of time, the company recognizes revenue according to the
performance progress within such period of time. When the performance progress is uncertain, provided that the costs incurred are
expected to be compensated, the revenue is recognized at the amount of costs already incurred until the performance progress can be
reasonably determined.
For a performance obligation performed at a particular time in time, the company recognizes revenue at the point in time when the
customer acquires the control of related goods or services. When judging whether a customer has acquired the control of goods or
services, the company would consider the following indications:
①This company has the present right to collect payments with respect to such goods or services;
②The company has transferred the physical objects of such goods to the customer;
③This company has transferred the legal title to such goods or the substantia l risk and reward on such legal title to the customer;
④The customer has accepted such goods or services, etc.
(2) Specific methods of the company for revenue recognition
Production and sale of feeds, livestock and poultry and foods are the main business of the company, and the company’s performance
obligation in such sales businesses is performance obligation performed at a particular point in time. Where the company has
received the payment for goods (cash sale or advances on sales) or expects to recover the payment for goods (credit sales) and
delivered the goods to a customer in such manner as specified in contract, which have been signed off by the customer, the customer
acquires the control of related goods and the company recognizes the revenue at the same time
Adoption of different business models in the same type of business results in difference in accounting policies for revenue
recognition.
None
34. Government subsidy
(1) Definition of government subsidy
Government subsidies refer to the monetary and non-momentary assets received by the company from government without
compensation, excluding capital invested by government as an investor.
(2) Types and classification criteria of government subsidy
Government subsidy consists of asset-related government subsidy and income-related government subsidy. The company defines the
government subsidies acquired by the company and used for acquisition or otherwise formation of long-term assets as asset-related;
other government subsidies acquired by the company otherwise related to assets are defined as income-related.
For comprehensive project government subsidies containing both asset-related parts and income-related parts, they are treated
respectively by distinguishing different parts; where it is difficult o distinguish, they are classified in entirety as income-related
government subsidies.
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(3) Recognition of government subsidy
A government subsidy is recognized when the government subsidy can be received and the conditions attached to the government
subsidy can be met. A government subsidy is measured at the amount actually received or receivable if it is a monetary asset. A
government subsidy that is a non-monetary asset is measured at fair value.
Asset-related government subsidies are recognized by the company as deferred income and charged to other income in a reasonable
and systematic manner over the service life of the related asset by phases; Income-related government subsidies, if used for
compensating relevant expenses and losses of the company in future periods, are recognized as deferred income and are charged to
profit and loss in the period when relevant costs and expenses or losses are recognized; otherwise, they are charged directly to profit
and loss.
The company charges to other income the government subsidies received in connection with the daily activities of the company
according to substance of economic transaction, and charges to non-business revenue the government subsidies unrelated to daily
activities of the company.
The policy-related preferential subsidized loans acquired by the company are treated for accounting purposes by distinguishing
between fiscal authorities appropriating the proceeds of subsidized loans to the lending bank and the fiscal authorities appr opriating
the proceeds of subsidized loans directly to the company. Where the fiscal authorities appropriate the proceeds of subsidized loans to
the lending bank for provision of loans to the company at a policy-related preferential interest rate, the company records the loans at
the loan amount actually received and calculates the related borrowing costs according to the loan principal and such policy-related
preferential interest rate. Where the fiscal authorities appropriate the proceeds of subsidized loans directly to the c ompany, the
company charges the corresponding interest subsidy against the related borrowing costs.
35. Deferred income tax assets/deferred income tax liabilities
Based on the difference between the book value and tax base of assets and liabilities at the balance sheet date and the difference
between the book value and tax base of an item which has not been recognized as an asset and liability but whose tax base can be
determined according to the applicable tax laws, the deferred income tax assets and deferred income tax liabilities are measured using
balance sheet debt method and according to the tax rate applicable during expected recovery of such asset or repayment of suc h
liability.
(1) Recognition of deferred income tax assets
The company recognizes related deferred income tax assets to the limit of the taxable income that is highly likely to be received by
the company in future period to deduct the deductible temporary difference; but if such transaction is not business combination and
the transaction neither affects the accounting profits nor affects the taxable income (or deductible loss) when incurred, the related
deferred income tax assets are not recognized.
For related deductible temporary difference resulting from the investments of the company in its subsidiaries, affiliates and joint
ventures, if such temporary difference is highly likely not to be reversed in foreseeable future and the taxable income is highly likely
not to be obtained to deduct the deductible temporary difference in the future, the company recognizes the corresponding deferred
income tax assets.
At the balance sheet date, the company reviews the book value of deferred income tax assets. If it is highly likely not to ob tain
taxable income sufficient to deduct the benefits of deferred income tax assets in the future, the book value of deferred income tax
assets is written down. The amount written down is reversed when sufficient taxable income is highly likely to be obtained.
The deductible losses and tax credit which can be carried forward in future years are treated as if they are deductible temporary
difference. The corresponding deferred income tax assets are recognized to the extent of the amount of future income taxable which
is highly likely to be obtained to deduct the deductible losses and tax credit.
(2) Recognition of deferred income tax liabilities
Apart from initial recognition of goodwill or taxable temporary difference arising in a transaction that is not business comb ination
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and affects neither accounting profits nor taxable income (or deductible loss) when occurring, the company recognizes deferred
income tax liabilities arising from all taxable temporary differences.
For related taxable temporary difference resulting from the investments of the company in its subsidiaries, affiliates and joint
ventures, if the company can control the time to reverse the temporary difference and the temporary difference is highly like ly not to
be reversed in foreseeable future, the company does not recognize related deferred income tax liabilities.
(3) Income tax expense
The income tax expense consists of current income tax and deferred income tax. The current income tax is the expected payable tax
calculated based on the taxable income of this year at the tax rate stipulated by tax laws. The company charges current income taxes
and deferred income tax to the current profit and loss, except for the income tax arising from business combinations and transactions
or events directly charged to ownership interest (including other comprehensive income).
(4) Offset of income tax
At the balance sheet date, deferred income tax assets and deferred income tax liabilities are presented at a net amount after offset
when the following conditions are met at the same time:
①The taxpayer entity has the legal right to netting of current income tax assets and current income tax liabilities.
②Deferred income tax assets and deferred income tax liabilities are related to income tax imposed by the same tax authority on the
same taxpayer entity or related to different taxpayer entities but the taxpayer entities involved intend to conduct netting settlement of
current income tax assets and liabilities or acquire assets and repay liabilities at the same time within each period in the future that
has reversal of important deferred income tax assets and liabilities.
36. Lease
(1) Accounting treatment method for operating leases
The company started implementing the new lease standard as of January 1, 2021. Low-value or short-term leases that meet the
exemption requirements are not accounted for using the new standard, and for such low-value short-term leases:
(1) Where the company acts as the lessee, the rental expense on the operating lease is recognized as related asset cost or expense
using the straight-line method within the lease term. The initial direct costs are charged to the current profit or loss:
(2) Where the company acts as the lessor, the rental revenue on operating lease is recognized as revenue using the straight-line
method within the lease term. The initial direct costs arising from assets leased out under operating lease are capitalized when their
amounts are large, and are charged to the current profit and loss in phases over the entire lease period on the same basis as
recognition of rental revenue; when their amounts are small, they are directly charged to the current profit and loss. Fixed assets or
investment properties leased out under operating lease are still depreciated according to depreciation policies for related a ssets, while
other operating lease assets are amortized using reasonable methods.
(2) Accounting treatment method for financing leases
The company started implementing the new lease standard as of January 1, 2021, whereby for financial leases:
(1) Where the company acts as the lessee, details are shown in the related accounting policies disclosed in “Note V. (21) right-of-use
assets” and “Note V. (28) lease liabilities”
(2) Where the company acts as the lessor, at the commencement date of lease term, the company recognizes the receivable financial
lease payments for financial leases and derecognizes the financial lease assets. When initially measuring a receivable financ ial lease
amount, the company treats the net lease investment as the entry value of receivable financial lease amount. The net lease investment
is the sum of the unguaranteed residual value and the present value of the lease receivable not yet received at the commencement date
of lease term and discounted at the interest rate implicit in lease.
The company calculates the interest expense on lease liabilities in each period of the lease term at a fixed periodic rate and charges it
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to the current profit or loss or related asset cost. De-recognition and impairment of receivable financial lease amounts are treated for
accounting purposes according to the accounting policy described in “Note V. (10) Financial instruments”. Variable lease payments
not included in measurement of net lease investment are charged to current profit or loss as and when actually incurred.
(3) Accounting treatment of sale-and-leaseback
The company determines sale-and-leaseback transaction as financing lease or operating lease according to the provisions of lease
standards.
Where the sale-and-leaseback transaction is determined as a financing lease, the company considers the sale-and-leaseback
transaction and sale of asset as a single transaction and will not recognize the profit and loss on asset sale as current profit and loss,
but instead defers them as financing costs and allocate them according to the depreciation progress of such leased asset as the
adjustment to the depreciation charge.
Where the sale-and-leaseback transaction is determined as an operating lease, it should be recognized as current profit and loss if the
selling price is lower than the fair value; where the selling price is higher than the fair value, the portion in excess of the fair value is
deferred and amortized over the estimated service life of the asset. The difference between the fair value and book value of an asset
under sale-and-leaseback transaction is recognized as the current profit and loss.
(4) Improvement expenditure and repair of leased fixed assets
The improvement expenditures borne by the company on leased fixed assets (more than 0.20 million Yuan or exceeding one-year
lease fee on such asset) should be amortized within 5 years (not beyond the lease expiration date); other repair costs arisin g from
leased fixed assets and borne by the company are charged to the current profit and loss.
37. Hedge accounting
(1) Types of hedging business, hedging relationship and judgment about hedging effectiveness
The company’s hedging business is fair value hedging and manly consists of futures hedging business conducted on the domestic
agricultural product futures markets out of the consideration for avoiding the risks of price fluctuation associated with purchase of
raw materials (such as corn, soybean and soybean meal, etc).
The company continuously evaluates the hedging effectiveness, judges whether such futures hedging is highly effective during the
accounting period in which the hedging relationship is designated, and can only recognize and measure the highly effective futures
hedging according to the hedge accounting (the futures hedging that is not determined as highly effective is treated for accounting
purposes according to “Note V. (10) Financial instruments—derivative instruments”. The company determines a hedge as highly
effective if the hedge meets all of the following conditions:
①At the commencement of the hedge and thereafter, such hedge is expected to highly effectively offset the fair value changes
resulting from the hedged risks during the period of hedge designation;
②The actual offset result of such hedge is within a range of 80% to 125%.
(2) Accounting treatment method for hedging
For fair value hedging, the changes in fair value of hedging derivatives are charged to the current profit and loss. The chan ges in the
fair value of the hedged item due to the hedging risk are charged to the current profit and loss, while adjusting the book value of the
hedged item at the same time; where the hedged item is a firm commitment not yet recognized, the accumulated changes in fair value
of such firm commitment due to the hedged risk are recognized as an asset or liability, and the related gains or losses are charged to
the current profit and loss.
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38. Changes to important accounting policies and accounting estimates
(1) Important accounting policy changes
√ applicable □ not applicable
Contents and causes of accounting policy
Approval procedure Remarks
changes
“Enterprise Accounting Standard Unified regulations of the Ministry of
21—Lease” Caikuai 【2018】No. 35 Finance
(2) Adjustments to the related items of the financial statements at the beginning of the year of first adoption
due to first adoption of new lease standard as of 2021
Applicable
Whether the items of balance sheet at the beginning of the year need to be adjusted or not
√ Yes □ No
Consolidated balance sheet
Unit: Yuan
Item December 31, 2020 January 1, 2021 Adjustment
Current assets:
Cash at bank and on hand 8,799,264,356.20 8,799,264,356.20
Settlement reserve
Loans to other banks
Held-for-trading financial assets 2,196,760.08 2,196,760.08
Derivative financial assets
Notes receivable 25,116,000.00 25,116,000.00
Accounts receivable 865,340,970.83 865,340,970.83
Receivables financing
Prepayments 3,146,703,624.53 2,813,178,243.80 -333,525,380.73
Insurance premiums receivable
Reinsurance amounts receivable
Provision of cession receivable
Other receivables 464,350,467.03 464,350,467.03
Wherein: interest receivable 28,841,237.06 28,841,237.06
Dividends receivable
Financial assets purchased for resale
Inventories 15,649,735,402.26 15,649,735,402.26
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Contract assets
Assets held for sale
Noncurrent assets due within one year
Other current assets 101,034,046.15 101,034,046.15
Total current assets 29,053,741,627.08 28,720,216,246.35 -333,525,380.73
Noncurrent assets
Loans and advances made
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 22,702,080,340.55 22,702,080,340.55
Other equity instrument investments 320,276,827.48 320,276,827.48
Other noncurrent financial assets
Investment properties 364,645.04 364,645.04
Fixed assets 28,861,009,355.16 28,861,009,355.16
Construction in progress 11,006,466,489.26 11,006,466,489.26
Productive biological assets 11,797,596,610.49 11,797,596,610.49
Oil & gas assets
Right-of-use assets 5,711,729,145.36 5,711,729,145.36
Intangible assets 1,552,519,664.88 1,552,519,664.88
Development expenditure
Goodwill 1,234,756,072.93 1,234,756,072.93
Long-term unamortized expenses 1,057,479,934.91 552,083,415.81 -505,396,519.10
Deferred income tax assets 315,540,930.34 315,540,930.34
Other noncurrent assets 1,541,633,064.03 1,541,633,064.03
Total noncurrent assets 80,389,723,935.07 85,596,056,561.33 5,206,332,626.26
Total assets 109,443,465,562.15 114,316,272,807.68 4,872,807,245.53
Current liabilities:
Short-term borrowings 10,399,072,204.60 10,399,072,204.60
Borrowings from central bank
Loans from other banks
Held-for-trading financial liabilities 16,850,229.73 16,850,229.73
The derivative financial liabilities
Notes payable 1,884,106,201.82 1,884,106,201.82
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Accounts payable 8,215,467,451.85 8,215,467,451.85
Advance receipts
Contract liabilities 2,285,698,452.30 2,285,698,452.30
Financial assets sold for repurchase
Deposits taken and interbank deposits
Proceeds from vicariously traded securities
Proceeds from vicariously underwritten
securities
Payroll payable 1,265,148,482.17 1,265,148,482.17
Taxes and dues payable 244,404,612.93 244,404,612.93
Other payables 4,515,294,643.20 4,515,294,643.20
Wherein: interest payable
Dividends payable 76,703,390.04 76,703,390.04
Handling fee and commission payable
Cession insurance premiums payable
Liabilities held for sale
Noncurrent liabilities due within one year 2,051,926,912.84 2,285,967,844.84 234,040,932.00
Other current liabilities 1,040,287,446.72 1,040,287,446.72
Total current liabilities 31,918,256,638.16 32,152,297,570.16 234,040,932.00
Noncurrent liabilities
Provision for insurance contracts 153,364,872.70 153,364,872.70
Long-term borrowings 22,901,808,635.67 22,901,808,635.67
Bonds payable 2,808,543,708.55 2,808,543,708.55
Wherein: preferred shares
Perpetual bonds
Lease liabilities 4,638,766,313.53 4,638,766,313.53
Long-term payables
Long-term payable payroll
Estimated liabilities
Deferred income 275,540,610.92 275,540,610.92
Deferred income tax liabilities 14,999,095.91 14,999,095.91
Other noncurrent liabilities
Total noncurrent liabilities 26,154,256,923.75 30,793,023,237.28 4,638,766,313.53
Total liabilities 58,072,513,561.91 62,945,320,807.44 4,872,807,245.53
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Ownership interest:
Share capital 4,505,800,981.00 4,505,800,981.00
Other equity instruments 1,991,904,960.44 1,991,904,960.44
Wherein: preferred shares
Perpetual bonds 1,800,000,000.00 1,800,000,000.00
Capital reserve 9,750,908,624.64 9,750,908,624.64
Minus: treasury shares 370,970,103.39 370,970,103.39
Other comprehensive income -343,891,820.87 -343,891,820.87
Special reserve
Surplus reserve 3,093,735,140.45 3,093,735,140.45
Generic risk reserve
Undistributed profits 21,218,846,353.41 21,218,846,353.41
Total ownership interest attributable to the parent
39,846,334,135.68 39,846,334,135.68
company
Minority interest 11,524,617,864.56 11,524,617,864.56
Total ownership interest 51,370,952,000.24 51,370,952,000.24
Total liabilities and ownership interest 109,443,465,562.15 114,316,272,807.68 4,872,807,245.53
Remarks on adjustments
The company adopted the “Enterprise Accounting Standard 21—Lease” issued under Caikuai【 2018】No. 35 document as of January
1, 2021, according to which the company will first adopt the cumulative effect set forth in the new lease standard and adjust the
amounts of related items of its financial statements at the beginning of 2021 by chargin g the lease expense that was originally
charged to “prepayments and long-term unamortized expenses” to the “right-of-use assets”, recognizing the “right-of-use assets” and
“lease liabilities” according to lease contract, and charging the “lease liabilities due within one year” to “noncurrent liabilities due
within one year”.
Parent company balance sheet
Unit: Yuan
Item December 31, 2020 January 1, 2021 Adjustment
Current assets:
Cash at bank and on hand 5,123,092,679.56 5,123,092,679.56
Held-for-trading financial assets
Derivative financial assets
Notes receivable 43,077,270.81 43,077,270.81
Accounts receivable
Receivables financing
Prepayments 11,093,569.12 10,771,695.59 -321,873.53
Other receivables 54,606,184,474.17 54,606,184,474.17
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Wherein: interest receivable 71,966,472.48 71,966,472.48
Dividends receivable 5,576,107.23 5,576,107.23
Inventories 35,515,147.51 35,515,147.51
Contract assets
Assets held for sale
Noncurrent assets due within one year
Other current assets 3,214,791.70 3,214,791.70
Total current assets 59,822,177,932.87 59,821,856,059.34 -321,873.53
Noncurrent assets
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 13,117,654,076.31 13,117,654,076.31
Other equity instrument investments 211,196,000.00 211,196,000.00
Other noncurrent financial assets
Investment properties
Fixed assets 22,125,177.47 22,125,177.47
Construction in progress 108,900.00 108,900.00
Productive biological assets
Oil & gas assets
Right-of-use assets 5,859,271.44 5,859,271.44
Intangible assets 12,096,017.06 12,096,017.06
Development expenditure
Goodwill
Long-term unamortized expenses 3,759,720.34 3,759,720.34
Deferred income tax assets 1,748,966.24 1,748,966.24
Other noncurrent assets 2,225,896.11 2,225,896.11
Total noncurrent assets 13,370,914,753.53 13,376,774,024.97 5,859,271.44
Total assets 73,193,092,686.40 73,198,630,084.31 5,537,397.91
Current liabilities:
Short-term borrowings 1,233,424,669.48 1,233,424,669.48
Held-for-trading financial liabilities
The derivative financial liabilities
Notes payable 157,626,966.22 157,626,966.22
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Accounts payable 31,457,471.61 31,457,471.61
Advance receipts
Contract liabilities 26,344,234.44 26,344,234.44
Payroll payable 42,181,388.07 42,181,388.07
Taxes and dues payable 8,566,076.27 8,566,076.27
Other payables 39,157,548,434.66 39,157,548,434.66
Wherein: interest payable
Dividends payable
Liabilities held for sale
Noncurrent liabilities due within one year 346,679,721.05 346,928,040.12 248,319.07
Other current liabilities 1,013,537,500.00 1,013,537,500.00
Total current liabilities 42,017,366,461.80 42,017,614,780.87 248,319.07
Noncurrent liabilities
Long-term borrowings 7,369,143,966.60 7,369,143,966.60
Bonds payable 2,808,543,708.55 2,808,543,708.55
Wherein: preferred shares
Perpetual bonds
Lease liabilities 5,289,078.84 5,289,078.84
Long-term payables
Long-term payable payroll
Estimated liabilities
Deferred income 2,584,397.24 2,584,397.24
Deferred income tax liabilities
Other noncurrent liabilities
Total noncurrent liabilities 10,180,272,072.39 10,185,561,151.23 5,289,078.84
Total liabilities 52,197,638,534.19 52,203,175,932.10 5,537,397.91
Ownership interest:
Share capital 4,505,800,981.00 4,505,800,981.00
Other equity instruments 1,991,904,960.44 1,991,904,960.44
Wherein: preferred shares
Perpetual bonds 1,800,000,000.00 1,800,000,000.00
Capital reserve 11,290,480,329.87 11,290,480,329.87
Minus: treasury shares 370,970,103.39 370,970,103.39
Other comprehensive income
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Special reserve
Surplus reserve 1,050,790,016.75 1,050,790,016.75
Undistributed profits 2,527,447,967.54 2,527,447,967.54
Total ownership interest 20,995,454,152.21 20,995,454,152.21
Total liabilities and ownership interest 73,193,092,686.40 73,198,630,084.31 5,537,397.91
Remarks on adjustments
The company adopted the “Enterprise Accounting Standard 21—Lease” issued under Caikuai【 2018】No. 35 document as of January
1, 2021, according to which the company will first adopt the cumulative effect set forth in the new lease standard and adjust the
amounts of related items of its financial statements at the beginning of 2021 by charging the lease expense that was originally
charged to “prepayments and long-term unamortized expenses” to the “right-of-use assets”, recognizing the “right-of-use assets” and
“lease liabilities” according to lease contract, and charging the “lease liabilities due w ithin one year” to “noncurrent liabilities due
within one year”.
(3) Remarks on retrospective adjustments to prior comparatives due to the first adoption of new lease
standard as of 2021
□ applicable √ not applicable
39. Important accounting judgments and estimates
Due to inherent uncertainties of business activities and changes in external factors, the company needs to make judgments, es timates
and assumptions accounting events that cannot be accurately measured in accounting treatment, which are based on historical
experience of the company’s management and are made taking into account other related factors. However, the actual results arising
from uncertainties of accounting events might differ from the current judgments and estimates made by the company’s management
and thereby might result in material adjustments to the book values of assets or liabilities affected in the future. The company
conducts periodic review and evaluation of the aforesaid adjustments, estimates and assumptions on the basis of going concern and
conducts accounting treatment according to enterprise accounting standards and related provisions. The important fields in wh ich the
company makes judgments, estimates and assumptions about amounts of financial statement items are as follows:
(1) Accrual of bad debt provision
The company accounts for bad debt loss using the allowance method according to the accounting policy for receivables, and acc rual
of bad debt provision is based on judgments and estimates made by the management about the recoverable amounts of accounts
receivable. The difference between actual results and original reasonable expectations will affect the book value of receivab les and
accrual or reversal of bad debt provision for receivables during the period in which estimates are changed.
(2) Inventory revaluation reserve
The company measures inventories at the lower of cost and net realizable value at the balance sheet date, and inventory impairment is
based on assessment of the marketability and net realizable value of inventories. Determination of inventory impairment requires the
company to obtain conclusive evidence for net realizable vale and to make judgments and estimates taking into account the purpose
of holding inventories and other factors. The difference between actual results and original reasonable expectations will aff ect the
book value of inventories and accrual or reversal of inventory revaluation reserve during the period in which est imates are changed.
(3) Impairment f other long-term assets
The company conducts impairment tests for long-term assets such as long-term equity investments, fixed assets, construction in
progress, productive biological assets and intangible assets when there is any indication of impairment; goodwill is subjected to
impairment test each year, regardless of whether there is any indication of impairment. When the book value of an asset or as set
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group is higher than its recoverable amount (the higher of the net amount of fair value minus disposal costs and the present value of
estimated future cash flows), impairment loss is recognized.
The net amount of fair value minus disposal costs is determined by reference to the sales agreement price of similar assets in arm’s
length transaction or observable market price minus the incremental cost directly attributable to such asset disposal; the es timated
future cash flows require use of data about output, selling price, related operating costs and other aspects of such asset or asset group
that involve future cash flows. The company estimates recoverable amounts based on all available external information and for ecasts
made inside the company based on reasonable expectations and supportable assumptions with respect to output, selling prices and
operating costs.
(4) Depreciation and amortization
The company depreciates or amortizes fixed assets, right-of-use assets, productive biological assets and part of intangible assets
using the straight-line method over the economic service life, with the service life determined based on historical experience,
contractual provisions and asset performance parameters, taking into account the expected technological updating, etc. If the previous
reasonable estimates change in a manner that has significant effects, adjustments are made to depreciation and amortization expenses
in the future periods.
(5) Tax matters such as income tax
In the normal course of business operations, fiscal and tax treatment of part of tax-related transactions or events by the company face
considerable uncertainties due to involvement of projections and judgments, and might affect the financial statements in future
accounting periods; mainly including:
①The company pays enterprise income tax at home and in many foreign countries, and whether part of items can be presented and
disbursed before tax requires approval and confirmation of competent tax authorities. If the final determinations of these ta x matters
differ from the original projections and judgments, such difference will affect the current income tax expense on them in the period of
final determination.
②The company can carry over the deductible losses to future years and recognizes the corresponding deferred tax assets to the limit
of future taxable income that is highly likely to be available to deduct the deductible losses. The company needs to exercis e
numerous judgments in order to reasonably estimate the period and amount of taxable income arising in the future. If the market
quotations of future business units or profitability of individual taxpaying entity are significantly changed from the current projection
results, such difference will affect the deferred income tax expense in future periods.
③Due to the special nature of tax policies related to deduction of input tax on agricultural products and the low gross margins of the
business unit of primary processing of agricultural products at present, the cumulative amount of excess VAT paid by subs idiaries of
the company engaged in slaughter and primary processing of meat foods is relatively large. If tax policies related to deduct ion of
input tax on agricultural products substantially change in the future, it might materially affect the payable ta xes and profit and loss in
future periods.
VI. Taxes
1. Main tax categories and tax rates
Tax category Basis of taxation Tax rate
VAT Taxable sales 13%-3%
Urban maintenance and construction tax Turnover tax actually paid 7%, 5%, 1%
Enterprise income tax Turnover tax actually paid 30%-5%
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2. Tax preferences
(I). VAT
（1）The general feed products produced and sold by domestic feed manufacturers of the company were subject to VAT rate of 10%
prior to April 1, 2019; according to the “Proclamation on Policies Deepening the VAT Reform” (Proclamation of MoF, SAT and GAC
2019 No. 39) of the Ministry of Finance, the State Administration of Taxation and General Administration of Customs, as of April 1,
2019, the tax rate applicable to production and sale of feed products is adjusted to 9%. In addition, according to the ‘Notice of the
Ministry of Finance and the State Administration of Taxation on Issues regarding Exemption of Value -added Tax on Feed Products”
(Caishui〔2001〕No. 121), feed products produced and sold by feed manufacturers that meet its provisions are exempted from VAT.
Taxable goods sold by feed manufacturers other than feeds are subject to a VAT rate of 3% (small taxpayers) or 9% or 13% (general
taxpayers).
（2）The preliminarily processed products produced by domestic slaughtering and meat packing businesses of the company were
subject to VAT rate of 10% prior to April 1, 2019; according to the “Proclamation on Policies Deepening the VAT Reform”
(Proclamation of MoF, SAT and GAC 2019 No. 39) of the Ministry of Finance, the State Administration of Taxation and General
Administration of Customs, as of April 1, 2019, the tax rate applicable to preliminarily processed products is adjusted to 9% and the
VAT rate applicable to delis and deep processed products is 13%.
(3) The domestic farming businesses of the company are exempted from VAT according to Article 15 ‘Self-made agricultural
products sold by agricultural producers are exempted from VAT” of the “Interim Regulations of the People’s Republic of China on
Value-added Tax”
（4）The feed products and fresh meat and egg products sold by domestic trading businesses of the company are exempted from
VAT, while other products were subject to a VAT rate of 16% or 10% prior to April 1, 2019 according to the national regulatio ns;
according to the “Proclamation on Policies Deepening the VAT Reform” (Proclamation of MoF, SAT and GAC 2019 No. 39) of the
Ministry of Finance, the State Administration of Taxation and General Administration of Customs, as of April 1, 2019, the tax rate
applicable is adjusted to 13% or 9%.
(5) Subsidiaries Sichuan Xinle Plastics Co., Ltd, Zibo Huide Feed Machinery Co., Ltd and Chengdu Fenglan Technology Co., Ltd
were subject to a VAT rate of 16% prior to April 1, 2019; according to the “Proclamation on Policies Deepening the VAT Reform”
(Proclamation of MoF, SAT and GAC 2019 No. 39) of the Ministry of Finance, the State Administration of Taxation and General
Administration of Customs, as of April 1, 2019, the tax rate applicable is 13%.
（6）Among its overseas subsidiaries, the feed products sold by its subsidiaries in Vietnam and self-produced agricultural products
sold by its breeding business therein are exempted from VAT, and the VAT rate applicable to disposal of obsolete materials an d fixed
assets is 10%; the VAT rate applicable to its Sri Lanka companies is 12%; the goods and services operated and sold locally by New
Hope Singapore Pte. Ltd and New Hope Singapore Premix Pte. Ltd are subject to a GST (VAT) rate of 7%; feed products sold by
New Hope South Africa Co., Ltd are exempted from VAT, and the VAT rate on taxable items other than feed products is 15%; feed
products sold by its subsidiaries in Indonesia, Bangladesh, the Philippines, Cambodia and Egypt are exempted from VAT.
(II) Urban maintenance and construction tax, educational surcharge
For the company and its domestic subsidiaries: (1) urban construction tax varies from region to region, at a rate of 7%, 5% or 1% of
payable turnover tax respectively; (2) educational surcharge is imposed at a rate of 3% of the payable turnover tax amount, and local
educational surcharge at 2%.
(III) Enterprise income tax
(1) According to the “Proclamation on Continuation of Enterprise Income Tax Policy for Further Implementation of the Go-west
Strategy” (MoF Procla mation 2020 No. 23) jointly issued by the Ministry of Finance, the State Administration of Taxation and
NDRC, from January 1, 2021 to December 31, 2030, enterprises established in west China that operate in encouraged industries are
subject to enterprise income tax at a reduced rate of 15%.
Among the branches and subsidiaries of the company established in Mianyang in west China, Guanghan Guoxiong, Zunyi Jiahao,
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Guiyang Xinke, Qiandongnan New Hope, Qujing Guoxiong, Chongqing Guoxiong, Ziyang Jiahao, Luzhou N ew Hope, Hope Food,
Lanzhou New Hope, Nanning Guoxiong, Yulin New Hope, Guilin New Hope, Pengshan New Hope, Century Investment, Wulong
New Hope, Kaixian New Hope, Chongqing New Hope, Baoji New Hope and Fenglan Technology are subject to an income tax rate
of 15%. Head office and branches operating across regions aggregate and settle their income tax with the tax authority gove rning
the parent company at the end of year following the principles of “unified calculation, level-by-level management, local prepayment,
aggregate clearing and fiscal adjustment to local treasuries”
（2）The meat food processing businesses of the company are exempted from enterprise income tax with respect to their preliminary
meat processing operations according to Article 27.1 of the “Enterprise Income Tax Law of the People’s Republic of China”, Ar ticle
86 of the “Implementing Regulations for Enterprise Income Tax Law of the People’s Republic of China” and Caishui (2008)No. 14 9
document; the deep processing business is subject to an income tax rate of 25%.
（3）The breeding businesses of the company are exempted from enterprise income tax with respect to their livestock and poultry
breeding operations according to Article 27.1 of the “Enterprise Income Tax Law of the People’s Republic of China” and Article 86
of the “Implementing Regulations for Enterprise Income Tax Law of the People’s Republic of China”.
（4）The subsidiaries Weifang New Hope Liuhe Feed Technology Co., Ltd and Huanggang New Hope Feed Technology Co., Ltd
were designated as high-tech enterprises, and according to Article 28 of the “Enterprise Income Tax Law of the People’s Republic of
China”, high-tech enterprises that the state needs to particularly support are subject to enterprise income tax at a reduced rate of 15%.
（5） Hong Kong Dongxian Co., Ltd and Hong Kong Liuhe International Trade Co., Ltd, both registered in Hong Kong, are subject
to income tax rate of 16.5%.
（6）According to Zangzhengfa [2014] No. 51, companies in Tibet Autonomous Region are subject to enterprise income tax at a
reduced rate of 15% in the Go-West strategy, to which Shanghai Investment, Food Holdings and Lhasa New Hope apply.
（7）Enterprise income tax policies for overseas subsidiaries of the company
A. New Hope Ho Chi Minh Co., Ltd, New Hope Hanoi Co., Ltd Than Hoa Branch, New Hope Hanoi Co., Ltd Bac Giang Branch and
New Hope Binh Dinh Co., Ltd are subject to an income tax rate of 20% in 2021.
B. New Hope Hanoi Co., Ltd, Than Hoa New Hope Livestock Services Co., Ltd, New Hope Vinh Long Co., Ltd and New Hope Binh
Dinh Livestock Co., Ltd are subject to income tax rate of 10% with respect to their main business in 2021 ac cording to the local tax
preference policies, while income from their non-main businesses (including net revenue from obsolete materials, net interest
revenue and net non-business receipts and expenditures) is not entitled to income tax preference and is subject to income tax rate of
20%.
C. New Hope Hanoi Co., Ltd Haiphong Branch is subject to income tax rate of 10% with respect to 52% of taxable income from its
main business according to the local tax preference policies, while income from its non-main businesses (including net revenue from
obsolete materials, net interest revenue and net non-business receipts and expenditures) is not entitled to income tax preference and is
subject to the normal income tax rate of 20%.
D. New Hope Dong Thap Producing Feed For Aquaculture Co., Ltd is subject to income tax rate of 15% within 12 years of
commencement of its operations, followed by 20% in subsequent years, while at the same time it is entitled to a preferential policy of
“tax exemption for 3 years as of the year of profit making and tax collection at half of the statutory tax rate for 7 years”. The
aforesaid company was under preparation for establishment in 2008, started making profits in 2010 and was subject to an income tax
rate of 20% in 2021. Its second phase of project is subject to an income tax rate of 20%, exempted from income tax for 2 years
starting from 2018 (from 2018 to 2019) and subject to a 10% income tax rate for 4 years (from 2020 to 2023) and an income tax rate
of 20% as of 2024.
E. New Hope Binh Phuoc Livestock Co., Ltd is subject to “tax exemption for 2 years and halved tax rate for 4 years” with respect to
15% of its taxable income from main business according to the local tax preference policies, i.e., tax free for 2018-2019 and halved
tax rate for 2020-2023 at 10%, while its income from non-main business (including net revenue from obsolete materials, net interest
revenue and net non-business revenue and expenditures) is subject to distribution tax at the normal tax rate of 20%.
F. New Hope Central Luzon Agriculture Inc., New Hope Tarlac Agriculture Inc., New Hope Bulacan Agriculture Inc. and New Hope
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Isabela Agriculture Inc. and New Hope Pampanga Agriculture Inc. are taxed at the higher of 1% of its gross profits or 25% of its total
profits according to the local tax laws. New Hope Philippines Animal Healthcare Services Inc. is taxed at the higher of 1% of its
gross profits or 20% of its total profits according to local tax laws. New Hope Davao Agriculture Inc. is exempted from tax for five
years of its date of incorporation.
G. New Hope Bangladesh Ltd, New Hope Agrotech Bangladesh Ltd, New Hope Farms Bangladesh Ltd and New Hope Animal
Nutrition Bangladesh Co. Ltd are subject to income tax at 35% of revenue with respect to the bank deposit interest revenue part of
their total profits (10% withheld by banks), income tax at 35% with respect to net non-business revenue and expenditure and income
tax by segment with respect to the total profits net of interest and non-business revenue and expenditures; New Hope Bangladesh Ltd,
New Hope Agrotech Bangladesh Ltd and New Hope Animal Nutrition Bangladesh Co. Ltd are subject to a tax rate of 3% with
respect to the portion less than 1 million Taka (inclusive); 10% with respect to the portion of 1 million Taka-2 million Taka
(inclusive); and 15% with respect to the portion larger than 2 million Taka. For New Hope Farms Bangladesh Ltd, the first opt ion is
as follows: tax rate of 0 on less than 1 million Taka (inclusive); tax rate of 5% on 1 million-2 million Taka (inclusive); and tax rate of
10% on more than 2 million Taka. The second option: 0.6% of all revenue, whichever is higher between the two options.
H. Sichuan New Hope Agriculture (Cambodia) Co., Ltd is subject to an enterprise income tax rate of 20% in 2021 according to the
local tax policies. When the aforesaid company distributes its profits, it is required to pay profit distribution tax at 14% of amount
distributed. Income tax is prepaid at 1% of the business revenue each month.
I. New Hope Lanka (Pvt) Limited is subject to an income tax rate of 24% according to the local tax policies. 5% of the bank interest
revenue is withheld by banks and the remaining part is payable by this company.
J. According to the related provisions of National Taxation Administration of the Republic of the Union of Myanmar and related
resolutions made by Myanmar Investment Commission, Myanmar New Hope Farms Co., Ltd is exempted from enterprise income
tax for 5 years starting from official production and sales operations as from November 1, 2018, this subsidiary became operational
officially in November 2018 and the tax holiday for the Burmese subsidiary is (from November 1, 2018 to October 31, 2023), of
which 2021 is a period exempted from income tax. According to the related provisions of National Taxation Administration of the
Republic of the Union of Myanmar and related resolutions made by Myanmar Investment Commission, New Hope Mandalay Co.,
Ltd is exempted from enterprise income tax for 5 years starting from official production and sales operations as from January 2, 2021,
this subsidiary became operational officially on January 2, 2021 and the tax holiday for the Burmese subsidiary is (from January 2,
2021 to December 31, 2025), of which 2021 is a period exempted from income tax.
K. New Hope Laos Co., Ltd is subject to an income tax rate of 8% and is exempted from income tax for 5 years starting with its first
year of profit making according to the policies of Saysettha Development Zone in Laos. It was under preparatio n for establishment in
2013 and was officially put into operation in July 2014, with its tax holiday expiring in December 2020 and subject to halved tax rate
in 2021.
L. New Hope Singapore Pte. Ltd is subject to an income tax rate of 5% with respect to its trade revenue involved in enterprise
income tax (DEI), and its preferential period is 5 years(2015/07/01-2020/06/30) +3 years (2020/07/01-2023/06/30), with the five
years as the first phase, where the Economic Development Board (EDB) reassesses this compa ny. Where interest and management
fee revenue is involved, the company is subject to an income tax rate of 8% (FTC), with a preferential period of 5 years
(2017/07/01-2022/06/30), and the company is exempted from withholding tax (withholding income tax on interest) in Singapore
when paying interest expenses to overseas banking institutions and affiliates; the remaining related income is not entitled t o the
aforesaid preferences, and is subject to an income tax rate of 17%. When calculating, the first 10,000 Singapore dollars of taxable
income are 75% exempted from income tax, the subsequent 190,000 Singapore dollars thereof are 50% exempted from income tax
and the portion in excess of 200,000 Singapore dollars is not entitled to tax reduction or exemption.
M. New Hope International Holdings (Pte) Ltd, New Hope Asia Investment Pte. Ltd, New Hope Global Investment Pte. Ltd, New
Hope Singapore Premix Ltd and NHCS Investment Pte Ltd are subject to an enterprise income tax rate of 17%. When calculating, the
first 10,000 Singapore dollars of taxable income are 75% exempted from income tax, the subsequent 190,000 Singapore dollars
thereof are 50% exempted from income tax and the portion in excess of 200,000 Singapore dollars is not entitled to tax reduction or
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
exemption.
N. New Hope South Africa Ltd is subject to an income tax rate of 28% according to the local tax policies in South Africa.
O. New Hope Egypt Ltd, New Hope Agriculture (Egypt) Ltd, New Hope Alexander Ltd and New Hope Egypt Aquatic Technology
Ltd are subject to an income tax rate of 22.5% in 2021 according the local tax policies. New Hope Egypt Poultry Ltd’s revenue from
its engagement in livestock farming, fishery, poultry breeding and bee production-related activities is exempted from enterprise
income tax for 10 years of commencement date of its production activities according to Egyptian 2005 No. 91 Tax Law. This
company was put into operation in December 2020 and is exempted from tax in 2021.
P. New Hope Turkey Feed & Farming Food Import & Export and Industry Ltd is subject to an income tax rate of 22% according to
local tax policies.
Q. New Hope Poland Ltd is subject to an income tax rate of 19% according to local tax policies.
R. New Hope Kolkata Animal Feed Private Ltd is subject to an income tax rate of 30% according to local tax policies, as well as 7%
or 12% surcharges (additional 7% surcharge on annual revenue in excess of 10 million rupees and less than 100 million rupees, and
12% surcharge on annual revenue in excess of 100 million rupees).
S. PT New Hope Indonesia, PT New Hope Jawa Timur, PT New Hope Medan, PT New Hope Indonesia Farm, PT New Hope
Indonesia Aquatic Feeds, PT New Hope Indonesia Food, PT New Hope Indonesia Poultry Trade and PT Indonesia Corn Drying are
subject to an income tax rate of 22% according to the local tax policies.
T. New Hope Agro-technology Nigeria Ltd, according to Nigerian tax laws, is subject to an income tax rate of 30%, and losses
incurred by companies engaged in agricultural operations and trade may carry forward to the years after the loss-making tax years
without limitations until the losses are covered in full.
Apart from the aforesaid companies, all remaining majority-owned subsidiaries are subject to an income tax rate of 25%.
VII. Notes to items of consolidated financial statements
1. Cash at bank and on hand
Unit: Yuan
Item Ending balance Beginning balance
Cash on hand 14,417,649.58 10,992,215.57
Bank deposits 10,882,297,601.33 7,955,960,859.39
Other cash at bank and on hand 778,085,635.39 832,311,281.24
Total 11,674,800,886.30 8,799,264,356.20
Wherein: total amount deposited abroad 481,327,011.98 408,651,819.20
Total amount restricted from use due to mortgage, pledge or freeze 325,969,835.08 290,045,457.64
Other remarks
(1) Among the ending balance of other cash at bank and on hand, the balance of various margins was 325,969,835.08 Yuan, which is
unreadily available due to restrictions on use, therefore it is presented in the cash at bank and on hand in the balance shee t, not as
cash and equivalents in the cash flow statement.
(2) There were no momentary funds deposited abroad and the repatriation of which is restricted.
2. Held-for-trading financial assets
Unit: Yuan
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Item Ending balance Beginning balance
Financial assets measured at fair value through profit or loss 22,076,125.34 2,196,760.08
Wherein:
Derivative financial assets 22,076,125.34 2,196,760.08
Wherein:
Total 22,076,125.34 2,196,760.08
Other remarks:
(1) The derivative financial assets in the held-for-trading financial assets mainly consist of interest rate swaps, foreign exchange
forwards and futures contracts purchased.
(2) There were no significant restrictions on sale or realization of various financial assets at fair value through profit or loss at the end
of the period.
3. Notes receivable
(1) Notes receivable presented by category
Unit: Yuan
Item Ending balance Beginning balance
Bank acceptance bills 53,214,393.80 11,847,000.00
Commercial acceptance bills 10,292,486.45 13,269,000.00
Total 63,506,880.25 25,116,000.00
In case of bad debt provision for notes receivable accrued by general model of expected credit loss, please disclose related
information about bad debt provision by reference to the disclosure mode of other receivables:
□ applicable √ not applicable
(2) Notes receivable already endorsed or discounted by the company at the end of period and not yet
expired at the balance sheet date
Unit: Yuan
Amount not derecognized at the end of
Item Amount derecognized at the end of period
period
Bank acceptance bills 1,420,279,453.71
Commercial acceptance bills 5,461,713,016.84
L/C 49,907,309.00
Negotiable credit certificate of accounts
9,000,000.00
receivable
Total 6,940,899,779.55
Other remarks
There were no notes receivable pledged or converted into accounts receivable due to the drawer’s inability to perform at the end of
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
the period.
4. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: Yuan
Ending balance
Book balance Bad debt provision
Category
Proportion Book value
Amount Proportion Amount
accrued
Accounts receivable for which bad debt
48,497,191.00 2.66% 19,960,440.52 41.16% 28,536,750.48
provision is accrued by individual item
Wherein:
Accounts receivable for which bad debt
1,775,996,056.85 97.34% 299,964,543.87 16.89% 1,476,031,512.98
provision is accrued by portfolio
Wherein:
Total 1,824,493,247.85 100.00% 319,924,984.39 17.54% 1,504,568,263.46
Beginning balance
Book balance Bad debt provision
Category
Proportion Book value
Amount Proportion Amount
accrued
Accounts receivable for which bad debt
28,222,242.20 2.51% 18,804,928.87 66.63% 9,417,313.33
provision is accrued by individual item
Wherein:
Accounts receivable for which bad debt
1,096,453,569.49 97.49% 240,529,911.99 21.94% 855,923,657.50
provision is accrued by portfolio
Wherein:
Total 1,124,675,811.69 100.00% 259,334,840.86 23.06% 865,340,970.83
Bad debt provision accrued by individual item: accounts receivable for which bad debt provision is accrued beyond the company
policy
Unit: yuan
Ending balance
Name Bad debt Proportion
Book balance Reasons for accrual
provision accrued
By recoverable amount
PT.GUNUNG UNGGAS INDONESIA 13,822,567.77 380,120.62 2.75%
lower than book value
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
By recoverable amount
PT. KERINCI BUMI PERSADA 4,460,675.31 122,668.57 2.75%
lower than book value
By recoverable amount
CV.UNGGAS MAKMUR INDONESIA PERKASA 3,957,073.45 1,635,034.86 41.32%
lower than book value
By recoverable amount
FORTUNA FARM 3,344,057.50 91,961.58 2.75%
lower than book value
By recoverable amount
CV UNGGAS MAKMUR INDONESIA PERKASO 2,718,676.29 2,718,676.29 100.00%
lower than book value
By recoverable amount
PT JANU PUTRA BAROKAL 2,580,947.52 2,557,119.59 99.08%
lower than book value
By recoverable amount
KAYTANPIO FARM, INC. 2,225,000.61 1,283,227.43 57.67%
lower than book value
PT.LATANSA UNGGAS MAKMUR INDONESIA By recoverable amount
2,205,742.87 2,205,742.87 100.00%
(PT.LUMI) lower than book value
By recoverable amount
CV.CIKEMBAR JAYA FARM 2,036,806.78 1,005,978.87 49.39%
lower than book value
By recoverable amount
WIDARTI 2,022,256.03 78,624.59 3.89%
lower than book value
By recoverable amount
PT.SUMBER INTAN PERKASA 1,532,985.46 1,532,985.46 100.00%
lower than book value
By recoverable amount
PT.MITRA AMAN SEJAHTERA INDONESIA (PT MASJA) 1,485,355.52 1,485,355.52 100.00%
lower than book value
By recoverable amount
Zhao Jiu 1,149,540.00 1,149,540.00 100.00%
lower than book value
By recoverable amount
Liu Quansheng 1,045,000.00 1,045,000.00 100.00%
lower than book value
By recoverable amount
AGUNG WAHYONO 895,945.98 84,766.90 9.46%
lower than book value
By recoverable amount
CV.WAHYU UNGGAS JAYA 644,754.26 644,754.26 100.00%
lower than book value
By recoverable amount
PT.SARANA UNGGAS SEJAHTERA 632,035.62 632,035.62 100.00%
lower than book value
By recoverable amount
PT.BAGELEN UNGGAS MAJU 534,577.03 103,654.49 19.39%
lower than book value
By recoverable amount
Zhang Lina 522,720.00 522,720.00 100.00%
lower than book value
By recoverable amount
PT ARJUNA DAMAI LOSETA 207,851.93 207,851.93 100.00%
lower than book value
308
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
By recoverable amount
HAIDAR PS 192,657.65 192,657.65 100.00%
lower than book value
By recoverable amount
Kong Lingjie 143,800.00 143,800.00 100.00%
lower than book value
By recoverable amount
Liu Xiaotian 54,600.00 54,600.00 100.00%
lower than book va lue
By recoverable amount
KARUNIA BERKAH MAJU 51,999.19 51,999.19 100.00%
lower than book value
By recoverable amount
CV.AGUNG MITRA SEJAHTERA 29,564.23 29,564.23 100.00%
lower than book value
Total 48,497,191.00 19,960,440.52 -- --
Bad debt provision accrued by portfolio: overseas accounts receivable for which bad debt provision is accrued by portfolio
Unit: Yuan
Ending balance
Name
Book balance Bad debt provision Proportion accrued
Risk free 70,786,898.93 0.00 0.00%
Low risk 471,330,972.88 12,961,604.17 2.75%
Medium risk 44,128,222.05 8,556,462.14 19.39%
High risk 110,083,355.26 110,083,355.26 100.00%
Total 696,329,449.12 131,601,421.57 --
Remarks on basis for determination of this portfolio
For accounts receivable classified as risk combination, the company prepares the table of comparison between ages of accounts
receivable and expected credit loss rate during the entire existence and calculates the expected credit loss by reference to the
historical credit loss experience and in light of the current situation and forecast future economic situation.
A. Accounts receivable of overseas companies
No. Risk analysis Expected credit loss rate
A-1 Risk free 0.00%
A-2 Low risk 2.75%
A-3 Medium risk 19.39%
A-4 High risk 100.00%
Bad debt provision accrued by portfolio: domestic accounts receivable for which bad debt provision is accrued by portfolio
Unit: Yuan
Ending balance
Name
Book balance Bad debt provision Proportion accrued
Low risk 791,957,147.20 10,374,639.32 1.31%
Lower risk 139,155,736.71 9,434,759.16 6.78%
High risk 148,553,723.82 148,553,723.82 100.00%
309
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Total 1,079,666,607.73 168,363,122.30 --
Remarks on basis for determination of this portfolio
For accounts receivable classified as risk combination, the company prepares the table of comparison between ages of accounts
receivable and expected credit loss rate during the entire existence and calculates the expected credit loss by reference to the
historical credit loss experience and in light of the current situation and forecast future economic situation.
B. Accounts receivable of domestic companies
No. Risk analysis Expected credit loss rate
B-1 Low risk 1.31%
B-2 Relatively low risk 6.78%
B-3 High risk 100.00%
Remarks on basis for determination of this portfolio
In case of bad debt provision for accounts receivable accrued by general model of expected credit loss, please disclose related
information about bad debt provision by reference to the disclosure mode of other receivables.
□ applicable √ not applicable
Disclosure by age
Unit: Yuan
Age Ending balance
Less than 1 year (inclusive) 1,592,491,987.00
Wherein: less than 6 months 1,416,421,878.43
7-12 months 176,070,108.57
1-2 years 124,248,928.56
2-3 years 26,652,098.13
More than 3 years 81,100,234.16
3-4 years 10,432,175.38
4-5 years 35,550,849.10
More than 5 years 35,117,209.68
Total 1,824,493,247.85
(2) Bad debt provision accrued, recovered or reversed in the current period
Bad debt provision accrued in the current period:
Unit: yuan
Current change
Beginning
Category Recovered or Ending balance
balance Accrued Charged off Others
reversed
Bad debt
provision for 259,334,840.86 67,886,890.34 1,283,450.15 5,470,430.33 3,109,766.63 319,924,984.39
account
310
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
receivables
Total 259,334,840.86 67,886,890.34 1,283,450.15 5,470,430.33 3,109,766.63 319,924,984.39
Other current changes in bad debt provision:
(1) The bad debt provision was increased by 2,720,324.78 Yuan due to changes in subsidiaries:
(2) The bad debt provision was decreased by 5,830,091.41 Yuan due to changes in exchange rate;
(3) Accounts receivable writte n off and recovered by the company in the current period were 1,283,450.15 Yuan.
(4) The company had no accounts receivable for which the bad debt provision was fully accrued or in large proportions before the
current period but which were recovered or reversed in full or in large proportions and whose amounts were important in the c urrent
period.
(3) Accounts receivable actually charged off in the current period
Unit: Yuan
Item Amount charged off
Accounts receivable actually charged off 5,470,430.33
Of them, important charge-off of accounts receivable:
Unit: Yuan
Whether the
Nature of Charge-off amounts were
Amount
Name of entity accounts Causes of charge-off procedure incurred by
charged off
receivable performed related-party
transaction
Payments for Long time overdue, recognized
KAYTANPIO FARM, INC. 2,315,404.09 Note No
goods as difficult to recover
PT.AGRO MAKMUR ANTAR Payments for Long time overdue, recognized
3,003,930.37 Note No
MUSA(PT.AMANSA) goods as difficult to recover
Payments for Long time overdue, recognized
Many others 151,095.87 Note No
goods as difficult to recover
Total -- 5,470,430.33 -- -- --
Remarks on accounts receivable charged off
Note: for receivables that are indeed unrecoverable, individual charged-off amount of <0.5 million Yuan is submitted to the CFO,
vice president and president of joint-stock company for approval after being approved by the tier-2 business unit; individual
charged-off amount of ≥ 0.5 million Yuan is submitted to the chairman for approval.
(4) Top 5 accounts receivable in terms of ending balance pooled by debtor
Unit: Yuan
Ending balance of Percentage of total ending balance of Ending balance of bad
Name of entity
accounts receivable accounts receivable debt provision
The 5th procurement service station of 59,671,108.72 3.27% 2,000,231.50
311
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Joint Logistic Support Force
Nanjing Heda Food Co., Ltd 26,309,974.18 1.44% 26,309,974.18
Beijing Jiaxin Hengtai Trade Co., Ltd 25,183,183.65 1.38% 25,183,183.65
Shandong Yunuo Down Products Co.,
23,004,797.36 1.26% 301,362.87
Ltd
Hunan Xiangbei Jiazhi Biotechnology
22,073,419.80 1.21% 289,161.63
Co., Ltd
Total 156,242,483.71 8.56%
The company shall comply with the disclosure requirements set forth in “Shenzhen Stock Exchange’s Industry Information
Disclosure Guidance No. 1---Listed Companies Engaged in Livestock, Poultry and Aquaculture Businesses”.
5. Prepayments
(1) Prepayments presented by age
Unit: Yuan
Ending balance Beginning balance
Age
Amount Proportion Amount Proportion
Within a year 4,732,366,206.12 99.70% 2,805,706,730.90 99.73%
1-2 years 13,769,319.74 0.29% 7,469,736.90 0.27%
2-3 years 297,198.03 0.01% 1,776.00 0.00%
Total 4,746,432,723.89 -- 2,813,178,243.80 --
Remarks on causes of high-value prepayments aged over one year and not yet settled in time:
There were no important prepayments aged over 1 year at the end of period.
(2) Top five prepayments in terms of ending balance pooled by the subject of prepayments
The aggregate amount of top five prepayments in terms of ending balance pooled by subjects of prepayments was 1,862,685,898.8 7
Yuan, accounting for 39.24% of the total ending balance of prepayments.
Other remarks:
6. Other receivables
Unit: Yuan
Item Ending balance Beginning balance
Interest receivable 46,994,199.68 28,841,237.06
Dividends receivable 84,105,000.00
Other receivables 507,960,810.94 435,509,229.97
Total 639,060,010.62 464,350,467.03
312
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
(1) Interest receivable
1) Interest receivable by category
Unit: Yuan
Item Ending balance Beginning balance
Time deposits 46,994,199.68 28,841,237.06
Total 46,994,199.68 28,841,237.06
2） Important overdue interest
There was no interest overdue and unrecovered among the ending balance of interest receivable.
3) Bad debt provision accrued
□ applicable √ not applicable
(2) Dividends receivable
1) Dividends receivable by category
Unit: Yuan
Project (or investee) Ending balance Beginning balance
Qingdao Big Herdsman Machinery Co.,
77,625,000.00
Ltd
Zibo Xinmu Mechanical Technology Co.,
6,480,000.00
Ltd
Total 84,105,000.00
2) Important dividends receivable aged over 1 year
3) Bad debt provision accrued
□ applicable √ not applicable
Other remarks:
(3) Other receivables
1) Other receivables categorized by nature of amount
Unit: Yuan
Nature of amount Ending book balance Beginning book balance
313
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Petty cash 27,682,040.11 21,510,090.91
Margin 115,263,279.70 73,574,655.10
Deposit 170,253,948.18 155,909,050.23
Temporary borrowings 301,887,534.86 285,967,292.27
Others 20,964,975.58 20,865,767.41
Advances 115,729,109.98 101,496,406.93
Total 751,780,888.41 659,323,262.85
2) Bad debt provision accrued
Unit: Yuan
Phase 1 Phase 2 Phase 3
Expected credit loss during Expected credit loss during
Bad debt provision Expected credit loss Total
entire existence (without entire existence (with credit
in the next 12 months
credit impairment) impairment)
Balance as of January 1,
40,331,836.98 183,482,195.90 223,814,032.88
2021
Balance as of January 1,
2021 in the current ----- ----- ----- -----
period
--transferred to phase II 0.00 0.00 0.00
-transferred to phase III -4,089,602.47 4,089,602.47 0.00
-- reversed to phase II 0.00 0.00 0.00
-- reversed to phase I 0.00 0.00 0.00
Accrued in the current
9,221,669.04 0.00 9,221,669.04
period
Currently reversed 0.00 0.00 0.00
Currently charged off 0.00 0.00 0.00
Charged off in the
0.00 386,172.27 386,172.27
current period
Other changes -7,282.11 11,177,829.93 11,170,547.82
Balance as of June 30,
45,456,621.44 198,363,456.03 243,820,077.47
2021
Changes in book balance with respect to which current changes in the loss provision are significant
□ applicable √ not applicable
Disclosure by age
Unit: Yuan
314
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Age Ending balance
Less than 1 year (inclusive) 440,703,320.35
1-2 years 83,651,377.92
2-3 years 53,595,531.30
More than 3 years 173,830,658.84
3-4 years 55,997,072.38
4-5 years 26,670,880.41
More than 5 years 91,162,706.05
Total 751,780,888.41
3) Bad debt provision accrued, recovered or reversed in the current period
Bad debt provision accrued in the current period:
Unit: Yuan
Current change
Category Beginning balance Recovered or Ending balance
Accrued Charged off Others
reversed
Bad debt provision for other
223,814,032.88 9,221,669.04 11,177,829.93 386,172.27 7,282.11 243,820,077.47
receivables
Total 223,814,032.88 9,221,669.04 11,177,829.93 386,172.27 7,282.11 243,820,077.47
Note: The company’s bad debt provision for other receivables was 223,814,032.88 Yuan at the end of the previous year, bad debt
provision accrued in the current period was 9,221,669.04 Yuan, bad debt provision written off but recovered was 11,177,829.93 Yuan,
bad debt provision written off was 386,172.27 Yuan, the bad debt provision was increased by 75,112.63 Yuan due to changes in
subsidiaries; the bad debt provision was decreased by 82,394.74 Yuan due to changes in exchange rate; other receivables important in
amount for which the bad debt provision was fully accrued or in large proportions by the company before the current period but
which were recovered or reversed in full or in large proportions in the current period were zero.
4) Other receivables actually charged off in the current period
Unit: Yuan
Item Amount charged off
Other receivables actually charged off 386,172.27
Of them, important other receivables charged off:
Unit: Yuan
Charge-off Whether the amounts were
Name of Nature of other Amount
Causes of charge-off procedure incurred by related-party
entity receivables charged off
performed transaction
Long time overdue, recognized
Liu Zhaoqing Current accounts 115,882.00 Note No
as difficult to recover
315
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Long time overdue, recognized
Many others Current accounts 270,290.27 Note No
as difficult to recover
Total -- 386,172.27 -- -- --
Remarks on other receivables charged off:
For receivables that are indeed unrecoverable, individual charged-off amount of <0.5 million Yuan is submitted to the CFO, vice
president and president of joint-stock company for approval after being approved by the tier-2 business unit; individual charged-off
amount of ≥ 0.5 million Yuan is subject to the president for approval.
5) Top 5 other receivables in terms of ending balance pooled by debtor
Unit: Yuan
Nature Percentage of total Ending balance
Name of entity of Ending balance Age ending balance of of bad debt
amount other receivables provision
China Securities Depository and
Current
Clearing Co., Ltd Shenzhen 35,674,925.85 Within a year 4.75% 1,801,583.75
accounts
Branch
Current
Guangzhou Guwang Feed Co., Ltd 29,200,000.00 Within a year 3.87% 1,474,600.00
accounts
Qingdao Liuqing Livestock and
Current 1-2 years, 3-4 years and
Poultry Breeding Specialized 25,628,000.00 3.41% 25,628,000.00
accounts more than 5 years
Cooperatives
Within 1 year, 1-2 years, 2-3
Current
Jiuzhaigou Plateau Food Co., Ltd 21,771,557.57 years, 3-4 years, 4-5 years, 2.90% 21,616,893.28
accounts
and over 5 years
Wuxiang Lvnong Farming
Current Within 1 year, 1-2 years and
Technology Co., Ltd Breeding 21,540,539.91 2.87% 21,540,539.91
accounts 2-3 years
Branch
Total -- 133,815,023.33 -- 17.80% 72,061,616.94
7. Inventories
Whether the company is required to comply with disclosure requirements for real estate industry
No
(1) Inventory by category
Unit: Yuan
Ending balance Beginning balance
Item Inventory Inventory
Book balance Book value Book balance Book value
revaluation revaluation
316
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
reserve or contract reserve or
performance cost contract
impairment performance
provision cost
impairment
provision
Raw materials 5,658,453,086.99 7,807,668.61 5,650,645,418.38 4,381,580,324.70 8,121,734.58 4,373,458,590.12
Products in
180,877,330.28 42,902.18 180,834,428.10 225,249,137.74 16,513,823.65 208,735,314.09
progress
Goods in stock 4,171,580,647.51 43,819,001.05 4,127,761,646.46 3,281,595,029.92 45,370,018.38 3,236,225,011.54
Revolving
94,787,221.42 215,720.63 94,571,500.79 84,959,243.65 215,720.63 84,743,523.02
materials
Consumptive
10,408,933,628.10 984,958,590.54 9,423,975,037.56 7,584,503,960.86 7,584,503,960.86
biological assets
Packaging
142,827,826.92 948,340.90 141,879,486.02 126,734,392.35 1,456,778.39 125,277,613.96
materials
Low-value
34,730,175.00 34,730,175.00 36,499,640.05 36,499,640.05
consumables
Outsourced
processed 128,283.11 128,283.11 291,748.62 291,748.62
materials
Total 20,692,318,199.33 1,037,792,223.91 19,654,525,975.42 15,721,413,477.89 71,678,075.63 15,649,735,402.26
(2) Inventory revaluation reserve or contract performance cost impairment provision
Unit: Yuan
Current increase Current decrease
Beginning
Item Reversed or Ending balance
balance Accrued Others Others
written off
Raw materials 8,121,734.58 280,620.34 568,813.23 25,873.08 7,807,668.61
Products in
16,513,823.65 16,470,921.47 42,902.18
progress
Goods in stock 45,370,018.38 26,072,266.53 27,623,283.86 43,819,001.05
Revolving
215,720.63 215,720.63
materials
Consumptive
984,964,578.23 5,987.69 984,958,590.54
biological assets
Packaging
1,456,778.39 508,437.49 948,340.90
materials
317
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Total 71,678,075.63 1,011,317,465.10 45,171,456.05 31,860.77 1,037,792,223.91
Details of inventory revaluation reserve:
Item Specific basis for accrual of inventory Causes of current reversal Causes of current write-off
revaluation reserve
Raw materials Net realizable value lower than book value Price rebound Requisitioned for production in
the current period
Packaging materials Price rebound Requisitioned for production in
the current period
Products in progress Price rebound Requisitioned for production in
the current period
Goods in stock Net realizable value lower than book value Price rebound Sold in the current period
Revolving materials
Consumptive biological Net realizable value lower than book value
assets
(3) Remarks on the ending balance of inventories containing capitalized amount of borrowing costs
(4) Remarks on currently amortized amount of contract performance cost
8. Other current assets
Unit: Yuan
Item Ending balance Beginning balance
VAT input tax to be deducted 88,053,013.61 46,975,246.66
Taxes prepaid 56,936,069.55 52,003,422.70
Others 1,134,107.94 2,055,376.79
Total 146,123,191.10 101,034,046.15
Other remarks:
The “others” item mainly consists of the feed amounts prepaid for cooperative pig farming by an indirectly majority-owned
subsidiaryof the company, i.e. Daqing Liuhe Feed Co., Ltd.
318
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
9. Long-term equity investments
Unit: Yuan
Current increase or decrease
Ending
Profit or loss on Adjustment Cash dividends
Beginning balance Impairment Ending balance balance of
Investee Additional Reduced investment for other Other equity or profits
(book value) provision Others (book value) impairment
investment investment recognized under comprehensive changes declared for
accrued provision
equity method income distribution
I. Joint ventures
Taishan Jiaxin Logistics
Co., Ltd
Beijing Meihao Meideling
64,061,663.38 -14,860,065.73 49,201,597.65
Food Co., Ltd
Anhui Xinqiao Down Co.,
22,356,179.05 2,188,105.24 24,544,284.29
Ltd
Yan’an Xinyongxiang
42,761,017.90 12,121,980.83 54,882,998.73
Technology Co., Ltd
Guangdong Hope No. 1
Equity Investment 583,376,894.38 5,003,951.02 588,380,845.40
Partnreship (LP)
Shenyang New Hope New
Agricultural Industry Fund 695,014,646.02 -8,564,243.46 686,450,402.56
Partnership (LP)
Hainan Nongken New Hope
Farming Technology Co., 45,456,111.04 44,100,000.00 -5,172,858.00 84,383,253.04
Ltd
319
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Zhanjiang Guangken
88,837,162.48 22,413,580.00 -616,280.43 110,634,462.05
Xinhao Farming Co., Ltd
Shandong Gongrong New
Hope Equity Investment 301,000,000.00 -1,628,656.49 6,674,372.34 292,696,971.17
Fund Partnership (LP)
Subtotal 1,842,863,674.25 66,513,580.00 -11,528,067.02 6,674,372.34 1,891,174,814.89
II. Affiliated enterprises
China Minsheng Bank 19,758,667,277.11 1,108,952,004.00 26,433,447.00 389,433,728.11 20,504,619,000.00
Guangzhou Chimian Co.,
3,273,677.29 141,654.77 3,415,332.06
Ltd
NHE (Beijing) Technology
9,011,387.31 133,336.88 9,144,724.19
Co., Ltd
Qianxinan Hope Farming
11,950,942.89 823,628.44 12,774,571.33
Co., Ltd
Hebei Kinghey Sausage
3,163,843.58 241,291.04 3,405,134.62
Casings Co., Ltd
New Hope Finance Co., Ltd 691,432,609.33 32,631,041.96 724,063,651.29
Nanjing Heda Food Co., Ltd
Qingdao Big Herdsman
226,691,654.43 42,199,215.81 77,625,000.00 191,265,870.24
Machinery Co., Ltd
Anhui Xinhua Ducks Co.,
2,759,380.56 -26,906.52 2,732,474.04
Ltd
Shanghai Liuhe Qinqiang
45,020,707.29 -737,010.67 44,283,696.62
Food Co., Lt d
Beijing CERES Agricultural
400,000.00 400,000.00
Development Co., Ltd
320
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Shandong Hypor Liuhe
27,945,900.00 525,150.00 28,471,050.00
Breeding Co., Ltd
Anhui Antai Agricultural
59,852,212.56 4,530,658.04 64,382,870.60
Development Co., Ltd
Nantong Yunfan Network
19,047,073.95 -1,841,095.62 17,205,978.33
Technology Co., Ltd
Xinzhi Huide Mechanical
44,100,000.00 381,315.22 -3,182,425.29 41,298,889.93
Technology Co., Ltd
Subtotal 20,859,216,666.30 44,100,000.00 1,187,954,283.35 26,433,447.00 -3,182,425.29 467,058,728.11 21,647,463,243.25
Total 22,702,080,340.55 110,613,580.00 1,176,426,216.33 26,433,447.00 -3,182,425.29 473,733,100.45 23,538,638,058.14
Other remarks
Note: As the net assets of Nanjing Heda Food Co., Ltd and Taishan Jiaxin Logistics Co., Ltd have become negative, the company wrote the investment cost down to 0 by accounting for under
the equity method.
321
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
10. Investments in other equity instruments
Unit: Yuan
Item Ending balance Beginning balance
Minsheng Life Insurance Co., Ltd 211,196,000.00 211,196,000.00
Sinograin Laizhou Fenghe Logistics Co.,
10,000,000.00 10,000,000.00
Ltd
Ziyang Agricultural Industrialization
4,500,000.00 4,500,000.00
Credit Guarantee Co., Ltd
Zhucheng Liuhe Oriental Food Co., Ltd 5,028,001.10 5,028,001.10
Beijing Baiyitong Technology Co., Ltd 21,970,000.00 21,970,000.00
HEcom (Beijing) Technology Co., Ltd 10,596,503.84 10,596,503.84
Shaanxi Yangling Rural Commercial Bank
7,020,000.00 7,020,000.00
Co., Ltd
Hebei Xingda Feed Group Co., Ltd 32,901,236.10 32,901,236.10
Guobao Life Insurance Co., Ltd 15,000,000.00 15,000,000.00
Fengshun New Hope Biotechnology Co.,
65,086.44 65,086.44
Ltd
Meigu Arsha Planting & Farming
2,000,000.00 2,000,000.00
Specialized Cooperatives
Total 320,276,827.48 320,276,827.48
Current non-trading equity instrument investments disclosed by item
Unit: Yuan
Amount of
Reasons for being
other Reasons for
designated as at
Dividend comprehensive transferring other
Accumulated Accumulated fair value and
Project name income income comprehensive
earnings losses through other
recognized transferred to income to retained
comprehensive
retained earnings
income
earnings
Minsheng Life Insurance Co., Ltd Note
Sinograin Laizhou Fenghe Logistics
Note
Co., Ltd
Ziyang Agricultural Industrialization
Note
Credit Guarantee Co., Ltd
Zhucheng Liuhe Oriental Food Co.,
Note
Ltd
Beijing Baiyitong Technology Co., Note
322
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Ltd
HEcom (Beijing) Technology Co.,
Note
Ltd
Shaanxi Yangling Rural Commercial
Note
Bank Co., Ltd
Hebei Xingda Feed Group Co., Ltd Note
Guobao Life Insurance Co., Ltd Note
Fengshun New Hope Biotechnology
Note
Co., Ltd
Meigu Arsha Planting & Farming
Note
Specialized Cooperatives
Total
Other remarks:
Note: The equity investment investments of the company and its subsidiaries are investments planned by the company and its
subsidiaries to hold in long term for strategic purposes, therefore the company and its subsidiaries designate them as financial assets
at fair value and through other comprehensive income on the date of first adoption of new financial instrument standards.
11. Investment properties
（1） Investment properties measured at cost
√ applicable □ not applicable
Unit: Yuan
Construction
Item Houses and buildings Land use right Total
in progress
I. Book value
1. Beginning balance 695,836.80 695,836.80
2. Current increase 191,676,862.84 191,676,862.84
(1) Purchased
(2) Transferred from inventory/fixed
191,676,862.84 191,676,862.84
assets/construction in progress
(3) Increase due to business combination
3. Current decrease
(1) Disposal
(2) Other transfer-out
4. Ending balance 192,372,699.64 192,372,699.64
II. Accumulated depreciation and accumulated
amortization
323
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
1. Beginning balance 331,191.76 331,191.76
2. Current increase 17,734,987.52 17,734,987.52
(1) Depreciated or amortized 2,521,470.59 2,521,470.59
(2) Transferred from inventory/fixed
15,213,516.93 15,213,516.93
assets/construction in progress
3. Current decrease
(1) Disposal
(2) Other transfer-out
4. Ending balance 18,066,179.28 18,066,179.28
III. Impairment provision
1. Beginning balance
2. Current increase
(1) Accrued
3. Current decrease
(1) Disposal
(2) Other transfer-out
4. Ending balance
IV. Book value
1. Ending book value 174,306,520.36 174,306,520.36
2. Beginning book value 364,645.04 364,645.04
(2) Investment properties measured at fair value
□ applicable √ not applicable
(3) Investment properties with title certificate pending
Unit: Yuan
Item Book value Reasons for pendency of title certificate
Self-built houses on leased land 106,024,027.85 Title cannot be secured for leased land
Other remarks
12. Fixed assets
Unit: Yuan
Item Ending balance Beginning balance
Fixed assets 32,536,857,553.91 28,860,864,031.09
324
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Disposal of fixed assets 146,639.34 145,324.07
Total 32,537,004,193.25 28,861,009,355.16
(1) Details of fixed assets
Unit: Yuan
Houses and Machinery and Transport
Item Others Total
buildings equipment equipment
I. Original book value:
1. Beginning balance 20,905,130,683.56 12,806,043,462.87 856,305,158.57 1,135,964,808.95 35,703,444,113.95
2. Current increase 3,176,481,233.15 1,632,432,622.17 262,452,699.85 202,906,946.37 5,274,273,501.54
(1) Purchased 239,044,669.45 288,808,855.97 261,252,787.55 183,305,399.34 972,411,712.31
(2) Transferred from
2,852,841,902.00 1,269,259,960.91 11,619,078.07 4,133,720,940.98
construction in progress
(3) Increase due to
84,172,383.05 74,254,598.78 1,186,531.34 7,931,358.61 167,544,871.78
business combination
(4) Exchange rate
422,278.65 109,206.51 13,380.96 51,110.35 595,976.47
changes
(5) Other increases
3. Current decrease 326,840,859.42 127,317,441.71 23,062,159.07 18,452,066.39 495,672,526.59
(1) Disposed or
72,005,625.19 76,495,935.75 20,372,917.86 12,371,723.10 181,246,201.90
scrapped
(2) Decrease in subsidiaries 305,602.55 10,128,620.31 452,814.15 330,937.31 11,217,974.32
(3) Exchange rate changes 59,435,505.04 37,793,297.62 2,236,427.06 2,922,341.52 102,387,571.24
(4) Other decreases 195,094,126.64 2,899,588.03 2,827,064.46 200,820,779.13
4. Ending balance 23,754,771,057.29 14,311,158,643.33 1,095,695,699.35 1,320,419,688.93 40,482,045,088.90
II. Accumulated
depreciation
1. Beginning balance 2,573,375,275.27 3,498,208,643.16 219,364,574.46 479,169,511.66 6,770,118,004.55
2. Current increase 546,904,105.81 519,659,476.01 52,360,451.75 102,624,692.42 1,221,548,725.99
(1) Accrued 538,270,090.61 499,147,725.75 51,977,929.11 99,061,191.21 1,188,456,936.68
(2) Increase due to business
8,550,839.76 20,467,136.47 372,237.11 3,551,319.89 32,941,533.23
combination
(3) Exchange rate changes 83,175.44 44,613.79 10,285.53 12,181.32 150,256.08
(4) Other increases
3. Current decrease 46,163,984.19 54,595,726.39 8,052,783.30 10,035,884.24 118,848,378.12
(1) Disposed or 15,790,338.60 42,396,157.57 6,902,469.44 7,991,741.53 73,080,707.14
325
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
scrapped
(2) Decrease in subsidiaries 319,780.35 21,037.86 22,629.81 363,448.02
(3) Exchange rate changes 6,780,041.22 9,929,560.76 1,129,276.00 1,107,414.59 18,946,292.57
(4) Other decreases 23,593,604.37 1,950,227.71 0.00 914,098.31 26,457,930.39
4. Ending balance 3,074,115,396.89 3,963,272,392.78 263,672,242.91 571,758,319.84 7,872,818,352.42
III. Impairment provision
1. Beginning balance 47,396,849.27 24,119,205.66 107,118.24 838,905.14 72,462,078.31
2. Current increase
(1) Accrued
3. Current decrease 89,815.53 2,000.00 1,080.21 92,895.74
(1) Disposed or
9,100.00 2,000.00 1,080.21 12,180.21
scrapped
(2) Decrease in subsidiaries
(3) Decrease due to
80,715.53 80,715.53
exchange rate changes
4. Ending balance 47,396,849.27 24,029,390.13 105,118.24 837,824.93 72,369,182.57
IV. Book value
1. Ending book value 20,633,258,811.13 10,323,856,860.42 831,918,338.20 747,823,544.16 32,536,857,553.91
2. Beginning book value 18,284,358,559.02 9,283,715,614.05 636,833,465.87 655,956,392.15 28,860,864,031.09
(2) Fixed assets temporarily idle
Unit: Yuan
Accumulated Impairment
Item Original book value Book value Remarks
depreciation provision
Houses and
108,368,568.40 52,195,007.82 24,647,403.11 31,526,157.47
buildings
Machinery and
86,029,633.22 67,903,262.88 9,143,523.31 8,982,847.03
equipment
Others 7,428,826.84 6,646,552.31 366,760.18 415,514.35
Total 201,827,028.46 126,744,823.01 34,157,686.60 40,924,518.85
(3) Fixed assets leased under operating lease
Unit: Yuan
Item Ending book value
General office buildings and production equipment 14,592,984.69
326
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Total 14,592,984.69
(4) Fixed assets with title certificate pending
Unit: Yuan
Item Book value Reasons for pendency of title certificate
Filling and completion formalities to be
Self-built houses on self-owned land 809,357,109.20
perfected
Self-built houses on leased land 9,931,695,349.13 Title cannot be secured for leased land
Houses with title transfer pending 24,985,109.00
Others 1,562,223.52 Dilapidated houses
Total 10,767,599,790.85
Other remarks
(5)Disposal of fixed assets
Unit: Yuan
Item Ending balance Beginning balance
Disposal of equipment 146,639.34 145,324.07
Total 146,639.34 145,324.07
Other remarks
13. Construction in progress
Unit: Yuan
Item Ending balance Beginning balance
Construction in progress 15,962,035,610.98 11,006,224,010.53
Engineering materials 17,832.00 242,478.73
Total 15,962,053,442.98 11,006,466,489.26
(1) Construction in progress
Unit: Yuan
327
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Feed plant reconstruction and
892,482,130.39 892,482,130.39 718,188,623.93 718,188,623.93
expansion project
Food processing reconstruction
276,987,327.13 276,987,327.13 229,272,318.21 229,272,318.21
and expansion project
Breeding company plant
reconstruction and expansion 14,774,000,307.14 3,260,194.00 14,770,740,113.14 9,996,088,967.51 3,260,194.00 9,992,828,773.51
project
Others 22,126,430.32 300,390.00 21,826,040.32 66,234,684.88 300,390.00 65,934,294.88
Total 15,965,596,194.98 3,560,584.00 15,962,035,610.98 11,009,784,594.53 3,560,584.00 11,006,224,010.53
(2) Current changes in important construction in progress
Unit: Yuan
Amount Percentage
Accumulated Current
transferred to Current of Wherein: current Source
Project Budgetary Beginning Project amount of interest
Current increase fixed assets in other Ending balance accumulated amount of interest of
name amount balance progress capitalized capitalization
the current decrease project input capitalized funding
interest rate
period in budget
New pig
farms built
1,216,500,187.65 346,013,732.12 319,876,728.03 76,081,129.58 589,809,330.57 54.74% 60.00% 32,522,643.50 16,497,630.68 4.20% Others
by Wuhe
New Hope
Newly-built 820,000,000.00 390,556,682.09 142,408,459.16 73,375,728.54 459,589,412.71 65.00% 57.50% 16,504,287.91 13,220,848.60 3.50% Others
328
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
pig farms
of
Zhangwu
Xinwang
Newly-built
pig farms
500,000,000.00 326,572,656.30 79,988,814.65 3,920,000.00 402,641,470.95 81.31% 95.00% 6,090,059.00 3,798,529.13 3.50% Others
of Beijing
Xinliu
New pig
farms built
by 2,265,120,000.00 149,673,231.53 236,407,283.52 386,080,515.05 17.04% 21.57% 1,430,981.64 1,430,981.64 4.15% Others
Guangan
Xinhao
Newly-built
pig farms
621,650,000.00 23,099,143.06 298,362,303.62 321,461,446.68 51.71% 30.00% 3,742,055.04 3,207,477.37 4.19% Others
of Longhai
New Hope
Newly-built
pig farms
420,510,000.00 49,198,897.68 270,413,168.26 319,612,065.94 76.01% 75.00% 1,457,338.01 491,916.63 3.50% Others
of Yanyuan
Xinliu
New pig
farms built
by 381,000,000.00 203,173,737.24 114,200,836.88 317,374,574.12 83.30% 70.00% 25,111,667.58 3,682,076.04 3.50% Others
Huanghua
Xinhao
Newly-built
300,000,000.00 299,192,024.29 299,192,024.29 99.73% 99.56% 587,359.06 587,359.06 4.50% Others
pig farms
329
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
of
Changxing
Huatong
Newly-built
pig farms
of 400,000,000.00 164,154,924.83 78,641,273.25 242,796,198.08 60.70% 55.00% 1,236,826.24 1,236,826.24 3.83% Others
Xiangshan
Huatong
New pig
farms built
by 1,065,060,000.00 275,881,894.96 183,065,837.76 230,785,145.26 228,162,587.46 43.09% 67.50% 13,966,308.73 6,170,302.80 3.50% Others
Chenzhou
Xinhao
Total 7,989,840,187.65 1,928,324,899.81 2,022,556,729.42 384,162,003.38 3,566,719,625.85 -- -- 102,649,526.71 50,323,948.19 --
330
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
(3) Engineering materials
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Special materials 17,832.00 17,832.00 242,478.73 242,478.73
Total 17,832.00 17,832.00 242,478.73 242,478.73
14. Productive biological assets
(1) Productive biological assets measured at cost
√ applicable □ not applicable
Unit: Yuan
Planting Aquatic
Item Livestock breeding business Forestry Total
business business
Immature Matured
I. Book value
1. Beginning balance 4,122,614,406.16 8,722,972,988.32 12,845,587,394.48
2. Current increase 3,921,025,436.24 3,486,135,951.44 7,407,161,387.68
(1) Purchased 1,135,774,566.67 20,388,598.29 1,156,163,164.96
(2) In-house
2,785,226,840.36 3,465,747,353.15 6,250,974,193.51
cultivation
(3) Increase due to business
combination
(4) Exchange rate changes 24,029.21 24,029.21
(5) Others
3. Current decrease 5,936,451,499.28 3,135,125,082.06 9,071,576,581.34
(1) Disposal 2,468,667,782.45 3,125,197,764.56 5,593,865,547.01
（2）Others
(3) Decrease in subsidiaries
(4) Exchange rate changes 2,036,363.68 4,482,165.56 6,518,529.24
(5) Herd transfer and
3,465,747,353.15 5,445,151.94 3,471,192,505.09
molting
4. Ending balance 2,107,188,343.12 9,073,983,857.70 11,181,172,200.82
II. Accumulated
331
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
depreciation
1. Beginning balance 1,047,990,783.99 1,047,990,783.99
2. Current increase 1,339,204,874.22 1,339,204,874.22
(1) Accrued 1,339,204,874.22 1,339,204,874.22
(2) Increase due to business
combination
(3) Exchange rate changes
(4) Others
3. Current decrease 928,941,454.07 928,941,454.07
(1) Disposal 924,614,310.04 924,614,310.04
（2）Others
(3) Decrease in subsidiaries
(4) Exchange rate changes 1,564,267.36 1,564,267.36
(5) Herd transfer and
2,762,876.67 2,762,876.67
molting
4. Ending balance 1,458,254,204.14 1,458,254,204.14
III. Impairment provision
1. Beginning balance
2. Current increase
(1) Accrued
3. Current decrease
(1) Disposal
（2）Others
4. Ending balance
IV. Book value
1. Ending book value 2,107,188,343.12 7,615,729,653.56 9,722,917,996.68
2. Beginning book value 4,122,614,406.16 7,674,982,204.33 11,797,596,610.49
(2) Productive biological assets measured at fair value
□ applicable √ not applicable
15. Right-of-use assets
Unit: Yuan
Houses and Machinery Transport
Item Land Entirely leased Others Total
buildings and equipment
332
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
equipment
1. Beginning
283,474,170.69 15,698,278.52 15,483,389.53 3,671,500,178.26 1,722,682,352.84 2,890,775.52 5,711,729,145.36
balance
2. Current
57,257,640.74 28,081,171.11 5,701,213.92 236,747,140.89 579,906,995.52 907,694,162.18
increase
(1) Additional
57,257,273.58 28,041,567.80 5,701,213.92 236,657,136.01 579,828,076.42 907,485,267.73
contracts
(2) Exchange rate
367.16 39,603.31 90,004.88 78,919.10 208,894.45
changes
3. Current
9,782,622.48 4,568,819.26 1,664,065.45 5,185,785.33 21,201,292.52
decrease
(1) Terminated
9,772,052.24 4,568,819.26 1,519,751.51 5,185,785.33 21,046,408.34
contracts
(2) Exchange rate
10,570.24 144,313.94 154,884.18
changes
4. Ending
330,949,188.95 43,779,449.63 16,615,784.19 3,906,583,253.70 2,297,403,563.03 2,890,775.52 6,598,222,015.02
balance
1. Beginning
balance
2. Current
34,807,075.98 3,072,872.04 375,798.09 71,518,043.35 166,948,645.62 274,748.35 276,997,183.43
increase
(1) Accrued 34,807,010.42 3,068,886.30 375,798.09 71,516,695.97 166,945,485.70 274,748.35 276,988,624.83
(2) Exchange rate
65.56 3,985.74 1,347.38 3,159.92 8,558.60
changes
3. Current
981,109.53 2,370.08 748,922.41 1,743,751.22 3,476,153.24
decrease
(1) Disposal 980,380.55 2,370.08 748,260.50 1,743,751.22 3,474,762.35
(2) Exchange rate
728.98 661.91 1,390.89
changes
4. Ending
33,825,966.45 3,072,872.04 373,428.01 70,769,120.94 165,204,894.40 274,748.35 273,521,030.19
balance
1. Beginning
balance
2. Current
increase
(1) Accrued
3. Current
decrease
333
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
(1) Disposal
4. Ending
balance
1. Ending book
297,123,222.50 40,706,577.59 16,242,356.18 3,835,814,132.76 2,132,198,668.63 2,616,027.17 6,324,700,984.83
value
2. Beginning
283,474,170.69 15,698,278.52 15,483,389.53 3,671,500,178.26 1,722,682,352.84 2,890,775.52 5,711,729,145.36
book value
Other remarks:
16. Intangible assets
(1) Details of intangible assets
Unit: Yuan
Non-patented
Item Land use right Patents Others Total
technology
I. Book value
1. Beginning balance 1,675,652,323.75 869,925.67 406,252,946.38 2,082,775,195.80
2. Current increase 107,367,315.93 38,062.50 141,027,086.47 248,432,464.90
(1) Purchased 76,056,153.19 10,512.50 20,294,724.66 96,361,390.35
(2) In-house R&D
(3) Increase due to business
31,252,784.58 27,550.00 120,732,361.81 152,012,696.39
combination
(4) Exchange rate changes 58,378.16 58,378.16
3. Current decrease 8,504,564.27 59,493.03 8,564,057.30
(1) Disposal 59,194.59 59,194.59
(2) Exchange rate changes 8,504,564.27 298.44 8,504,862.71
4. Ending balance 1,774,515,075.41 907,988.17 547,220,539.82 2,322,643,603.40
II. Accumulated amortization
1. Beginning balance 272,470,443.80 126,626.33 252,603,410.79 525,200,480.92
2. Current increase 18,036,405.64 342,893.54 32,663,637.18 51,042,936.36
(1) Accrued 16,345,995.34 342,839.84 32,634,096.25 49,322,931.43
(2) Increase due to business
1,690,410.30 53.70 29,540.93 1,720,004.93
combination
3. Current decrease 370,051.65 58,105.68 428,157.33
(1) Disposal 57,823.18 57,823.18
(2) Decrease in subsidiaries
334
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
(3) Exchange rate changes 370,051.65 282.50 370,334.15
4. Ending balance 290,136,797.79 469,519.87 285,208,942.29 575,815,259.95
III. Impairment provision
1. Beginning balance 5,055,050.00 5,055,050.00
2. Current increase
(1) Accrued
3. Current decrease
(1) Disposal
4. Ending balance 5,055,050.00 5,055,050.00
IV. Book value
1. Ending book value 1,479,323,227.62 438,468.30 262,011,597.53 1,741,773,293.45
2. Beginning book value 1,398,126,829.95 743,299.34 153,649,535.59 1,552,519,664.88
Percentage of the intangible assets resulting from in-house research and development of the company at the end of this period
accounted in the balance of intangible assets: 0.10%.
(2) Land use right for which certificate of title is pending
Unit: Yuan
Item Book value Reasons for pendency of title certificate
Incomplete paperwork, in the process of
Xiajin Xinhao Feed Co., Ltd 17,251,895.00
securing permits
Incomplete paperwork, in the process of
Lhasa New Hope Industrial Co., Ltd 11,372,083.32
securing permits
Incomplete paperwork, in the process of
Liuhe Feed (Huaian) Co., Ltd 4,178,754.80
securing permits
Incomplete paperwork, in the process of
Wudi Liuhe Xinyang Food Co., Ltd 2,799,999.98
securing permits
Incomplete paperwork, in the process of
PT Indonesia Corn Drying Lampung Branch 2,734,301.67
securing permits
Fuxin Liuhe Farming Co., Ltd Breeding Poultry Incomplete paperwork, in the process of
2,354,131.87
Branch securing permits
Weifang New Hope Liuhe Feed Technology Co., Incomplete paperwork, in the process of
2,261,452.60
Ltd securing permits
Incomplete paperwork, in the process of
Linshu Liuhe Feed Co., Ltd 1,669,286.54
securing permits
Total 44,621,905.78
Other remarks:
335
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
17. Goodwill
(1) Original book value of goodwill
Unit: Yuan
Current
Current increase
decrease
Name of investee or events that form
Beginning balance Formed from Ending balance
goodwill
business Others Disposal Others
combination
New Hope Liuhe Investment Co., Ltd 58,567,474.80 58,567,474.80
Beijing Kinghey Food Co., Ltd 19,091,431.45 19,091,431.45
Chengdu Fenglan Technology Co., Ltd 36,276,456.48 36,276,456.48
Chengdu Century Investment Co., Ltd 398,573,665.34 398,573,665.34
Beijing Porridge Jiahe Enterprise
80,314,997.56 80,314,997.56
Management Co., Ltd
Hefei Huaren Farming Group Co., Ltd 6,118,302.82 6,118,302.82
Xiantao Liuhe Feed Co., Ltd 422,276.77 422,276.77
Sheyang Liuhe Feed Co., Ltd 2,194,351.61 2,194,351.61
Anhui Wanxi White Goose Stock Seed Farm
1,958,093.80 1,958,093.80
Co., Ltd
Linxi Hexing Feed Co., Ltd 3,535,449.75 3,535,449.75
Yangling Besun Agricultural Industry Group
280,514,799.76 280,514,799.76
Co., Ltd
Weinan Zhengneng Farming Technology
19,920,121.97 19,920,121.97
Co., Ltd
Laiyang Xinmu Breeding Co., Ltd 251,371,600.00 251,371,600.00
Zhengzhou Quansheng Farming Technology
98,349,399.05 98,349,399.05
Co., Ltd
Total 1,257,208,421.16 1,257,208,421.16
(2) Provision for goodwill impairment
Unit: Yuan
Current increase Current decrease
Name of investee or events that form goodwill Beginning balance Ending balance
Accrued Others Disposal Others
Beijing Kinghey Food Co., Ltd 10,418,225.09 10,418,225.09
Hefei Huaren Farming Group Co., Ltd 6,118,302.82 6,118,302.82
336
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Xiantao Liuhe Feed Co., Ltd 422,276.77 422,276.77
Anhui Wanxi White Goose Stock Seed Farm Co., Ltd 1,958,093.80 1,958,093.80
Linxi Hexing Feed Co., Ltd 3,535,449.75 3,535,449.75
Total 22,452,348.23 22,452,348.23
Related information about asset group or asset group portfolio to which goodwill belongs
Method for goodwill impairment test: valuate the entire assets of the company based on the present value of estimated cash flow of
related subsidiaries in the next five years for comparison with the sum of the existing book value of the company and the value after
restoration of goodwill of minority shareholders.
Description of the goodwill impairment test process, key parameters (such as the forecast period growth rate, stable period growth
rate, profit rate, discount rate and forecast period when forecasting the present value of future cash flow, etc.) and the me thod for
recognition of goodwill impairment loss:
Accrual of provision for goodwill impairment: the amount of goodwill impairment is determined by the difference between the
estimated present value of recoverable cash flow and the sum of the company’s existing book value and value after restoration of the
goodwill of minority shareholders.
Effect of goodwill impairment test
Other remarks
18. Long-term unamortized expenses
Unit: Yuan
Current amount
Item Beginning balance Current increase Other decreases Ending balance
amortized
Land use fee 216,591,848.19 1,049,533.64 29,390,096.32 18,455,191.96 169,796,093.55
Expenditure on improvement
151,647,776.83 27,899,921.76 33,821,491.34 493,325.60 145,232,881.65
of right-of-use assets
Rental expenses of factory
93,872,085.00 751,928.02 25,078,891.05 54,964,762.64 14,580,359.33
buildings and equipment
Others 89,971,705.79 45,290,077.30 33,169,675.59 443,217.93 101,648,889.57
Total 552,083,415.81 74,991,460.72 121,460,154.30 74,356,498.13 431,258,224.10
Other remarks
“Other decreased amounts” contain the effects of exchange rate changes and reduction in the scope of consolidated statements.
19. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets not offset
Unit: Yuan
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
337
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Asset impairment provision 290,940,967.50 68,938,630.70 263,466,764.94 56,504,794.21
Profits unrealized through internal
184,009,778.89 43,916,050.29 270,448,466.24 65,869,849.12
transactions
Deductible losses 698,680,620.24 172,439,815.54 731,777,921.56 179,226,547.17
Change in fair value of
16,374,992.83 1,404,963.00 10,075,190.74 503,759.54
held-for-trading financial assets
Guarantee indemnity reserve and
56,990,766.20 13,045,811.48 64,053,315.14 13,435,980.30
deferred income, etc.
Total 1,246,997,125.66 299,745,271.01 1,339,821,658.62 315,540,930.34
(2) Deferred income tax liabilities not offset
Unit: Yuan
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Change in fair value of
21,363,925.34 1,427,336.28 2,135,879.88 106,794.02
held-for-trading financial assets
Taxable value of assets lower than
59,282,900.28 13,922,203.51 63,235,620.05 14,892,301.89
book value
Total 80,646,825.62 15,349,539.79 65,371,499.93 14,999,095.91
(3) Deferred income tax assets or liabilities presented by net amount after offset
Unit: Yuan
Ending amount mutually Ending balance of Beginning amount Beginning balance of
offset between deferred deferred income tax mutually offset between deferred income tax
Item
income tax assets and assets or liabilities after deferred income tax assets or liabilities after
liabilities offset assets and liabilities offset
Deferred income tax
1,167,215.81 298,578,055.20 315,540,930.34
assets
Deferred income tax
1,167,215.81 14,182,323.98 14,999,095.91
liabilities
(4) Details of unrecognized deferred income tax assets
Unit: Yuan
Item Ending balance Beginning balance
Deductible temporary difference 1,414,033,483.07 394,890,244.97
338
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Deductible losses 2,346,734,416.74 2,049,238,411.74
Total 3,760,767,899.81 2,444,128,656.71
(5) The deductible losses on unrecognized deferred income tax assets will become due in the following years
Unit: Yuan
Year Ending amount Beginning amount Remarks
2021 154,929,645.97
2022 135,958,485.06 154,267,048.74
2023 384,618,517.00 399,330,906.45
2024 254,881,060.50 301,312,830.70
2025 918,871,026.29 1,039,397,979.88
2026 652,405,327.89
Total 2,346,734,416.74 2,049,238,411.74 --
Other remarks:
20. Other noncurrent assets
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Amounts prepaid for
1,087,334,656.89 1,087,334,656.89 919,217,421.66 919,217,421.66
long-term assets
VAT input tax to be
563,192,399.61 563,192,399.61 622,415,642.37 622,415,642.37
deducted
Total 1,650,527,056.50 1,650,527,056.50 1,541,633,064.03 1,541,633,064.03
Other remarks:
21. Short-term borrowings
(1) Short-term borrowings by category
Unit: Yuan
Item Ending balance Beginning balance
Pledge loans 9,966,247.14 55,200.00
Mortgage loans 124,149,672.00 92,713,783.50
Guaranteed loans 2,892,408,857.35 2,429,444,815.64
339
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Credit loans 8,927,611,714.07 1,716,915,379.53
Borrowings against bill discounting 6,881,992,470.55 5,967,813,241.35
Borrowings against L/C discounting 49,907,309.00 120,971,940.00
Negotiable credit certificate of accounts
9,000,000.00 24,112,500.00
receivable
Factoring of accounts receivable 99,514,436.28 38,442,779.52
Plus: interest payable on borrowings 16,433,304.93 8,602,565.06
Total 19,010,984,011.32 10,399,072,204.60
Remarks on categorization of short-term borrowings
(1) The pledge loans and pledges are presented as follows:
Pledge details Amount of pledge loan
Insurance policy of Wulian Xinhao Farming Co., Ltd against dead pigs 55,200.00
Accounts receivable of Linyi New Hope Liuhe Feed Co., Ltd 9,911,047.14
Total 9,966,247.14
Note: 1. Wulian Xinhao Farming Co., Ltd, a subsidiary of the company, provided a pledge guarantee for 55,200 Yuan financing for
Wulian Xinhao Farming Co., Ltd from Chongqing PICC Small Loans Co., Ltd with the insurance policy of Wulian Xinhao Farming
Co., Ltd against dead pigs as the pledge.
2. Linyi New Hope Liuhe Feed Co., Ltd, a subsidiary of the company, provided a pledge guarantee for 9.911 million Yuan financ ing
for Linyi New Hope Liuhe Feed Co., Ltd from Agricultural Bank of China Co., Ltd Qingdao Nansan Sub-branch with accounts
receivable as the pledge.
(2) The mortgage loans and asset mortgages are presented as follows:
Collaterals Original book value of Amount of mortgage loan
collateral
Live pigs of Yangling Besun Agricultural Industry Group Co., Ltd 150,000,000.00 60,000,000.00
Land and house properties of New Hope Turkey Feed and Farming 6,812,702.50 2,843,904.00
Food Import & Export and Industry Ltd
House properties and equipment of New Hope Agro-technology Nigeria 44,975,890.26 6,305,768.00
Ltd
Land and houses of Huaian New Hope Feed Co., Ltd 15,096,501.00 10,000,000.00
Land and houses of Anhui Baixin Feed Co., Ltd 1,838,000.00 10,000,000.00
Land and house properties of Hefei Huameng Biotechnology Co., Ltd 15,180,708.60 5,000,000.00
Land and houses of Leting Liuhe Xinmeizi Food Co., Ltd 82,236,504.47 30,000,000.00
Total 316,140,306.83 124,149,672.00
(3) The details of guaranteed borrowings are presented as follows:
Names of the guarantor and the guaranteed Ending balance
Guarantee provided by New Hope Liuhe Co., Ltd for New Hope Agricultural 20,000,000.00
Technology Co., Ltd
340
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Kunming New Hope Animal 70,000,000.00
Nutrition Food Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Guangxi New Hope Liuhe Breeding 20,000,000.00
Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for XiangyangNew Hope Liuhe Feed 10,000,000.00
Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Guangzhou Liuhe Feed Co., Ltd 44,990,000.00
Guarantee provided by New Hope Liuhe Co., Ltd for Jiangmen Liuhe Feed Co., Ltd 50,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd for Sichuan Xinhe Import & Export 86,233,667.03
Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Yanggu Liuhe Luxin Food Co., Ltd 50,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd for Liaoning Kinghey Food Co., Ltd 50,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd for Yanting Xinhao Farming Co., Ltd 160,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd for Yijun Xinliu Technology Co., Ltd 30,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd for Laixi New Hope Liuhe Farming 50,000,000.00
Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Wuhe New Hope Liuhe Livestock 50,000,000.00
Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Ningbo New Hope Liuhe Farming 16,660,000.00
Co., Ltd
Anhui Agricultural Credit Financing Guarantee Co., Ltd provided a guarantee for Anhui 10,000,000.00
New Hope Feed Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Xiaoyi New Hope Liuhe Food Co., 200,000,000.00
Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Liuhe Feed (Huaian) Co., Ltd 15,000,000.00
Guarantee provided by Agricultural Credit Financing Guarantee Co., Ltd for Fuyang 10,000,000.00
Liuhe Feed Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Fuxin Liuhe Farming Co., Ltd 100,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd for Sichuan New Hope Animal 667,557,149.73
Nutrition Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for New Hope Singapore Pte., Ltd 1,086,223,362.19
Guarantee provided by New Hope Singapore Pte, Ltd for New Hope Tarlarc Agriculture 44,148,935.04
Inc.
Guarantee provided by New Hope Singapore Pte Ltd for New Hope Isabela Agriculture 15,957,446.40
Inc.
Guarantee provided by New Hope Singapore Pte Ltd for New Hope Central Luzon 35,638,296.96
Agriculture Inc.
Total 2,892,408,857.35
341
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
(2) Short-term borrowings overdue but not repaid
The short-term borrowings overdue but not repaid at the end of this period totaled 0.00 Yuan, of which important short-term
borrowings overdue but not repaid are as follows:
22. Held-for-trading financial liabilities
Unit: Yuan
Item Ending balance Beginning balance
Held-for-trading financial liabilities 17,137,307.83 16,850,229.73
Wherein:
The derivative financial liabilities 17,137,307.83 16,850,229.73
Wherein:
Total 17,137,307.83 16,850,229.73
Other remarks:
The derivative financial liabilities are interest rate swaps, foreign exchange forwards, futures and option contracts purchased.
23. Notes payable
Unit: Yuan
Category Ending balance Beginning balance
Commercial acceptance bills 343,228,360.65 683,322,624.38
Bank acceptance bills 924,700,436.60 1,185,582,848.29
Negotiable credit certificate of accounts
86,574,688.01 15,200,729.15
receivable
Total 1,354,503,485.26 1,884,106,201.82
The notes payable overdue and unpaid at the end of this period totaled 0.00 Yuan.
24. Accounts payable
（1）Presentation of accounts payable
Unit: Yuan
Item Ending balance Beginning balance
Accounts payable 8,507,158,233.35 8,215,467,451.85
Total 8,507,158,233.35 8,215,467,451.85
(2) Important accounts payable aged over 1 year
Other remarks:
342
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
The ending balance includes no important accounts payable aged over 1 year.
25. Contract liabilities
Unit: Yuan
Item Ending balance Beginning balance
Contract liabilities 2,248,863,709.87 2,285,698,452.30
Total 2,248,863,709.87 2,285,698,452.30
26. Payroll payable
(1) Presentation of payroll payable
Unit: Yuan
Item Beginning balance Current increase Current decrease Ending balance
I. Short-term compensation 1,257,379,126.72 5,202,006,600.61 5,154,480,145.40 1,304,905,581.93
II. Post-employment benefits-defined
2,186,833.11 262,906,351.99 261,711,137.65 3,382,047.45
contribution plan
III. Termination benefits 5,582,522.34 5,773,912.82 5,526,071.71 5,830,363.45
Total 1,265,148,482.17 5,470,686,865.42 5,421,717,354.76 1,314,117,992.83
(2)Presentation of short-term compensation
Unit: Yuan
Item Beginning balance Current increase Current decrease Ending balance
1. Wage, bonus, allowance and subsidy 1,017,499,785.55 4,569,028,667.45 4,588,320,620.50 998,207,832.50
2. Employee benefits 54,546.52 341,959,674.48 341,850,468.67 163,752.33
3. Social insurance costs 805,902.47 153,441,733.50 153,580,828.55 666,807.42
Wherein: medical insurance costs 596,337.65 138,911,261.48 139,048,382.37 459,216.76
Industrial injury insurance
168,712.73 10,667,939.89 10,666,367.24 170,285.38
costs
Maternity insurance costs 40,852.09 3,862,532.13 3,866,078.94 37,305.28
4. Housing fund 153,483.68 15,917,127.95 15,929,533.33 141,078.30
5. Trade union outlays and employee
238,865,408.50 112,761,933.60 45,901,230.72 305,726,111.38
education expenditure
6. Short-term paid absence 8,897,463.63 8,897,463.63
Total 1,257,379,126.72 5,202,006,600.61 5,154,480,145.40 1,304,905,581.93
343
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
(3)Presentation of defined contribution plan
Unit: Yuan
Item Beginning balance Current increase Current decrease Ending balance
1. Basic endowment
1,383,774.16 247,738,378.99 246,559,648.56 2,562,504.59
insurance
2. Unemployment
495,214.87 10,009,781.65 9,918,377.41 586,619.11
insurance costs
3. Comprehensive
307,844.08 5,158,191.35 5,233,111.68 232,923.75
insurance
Total 2,186,833.11 262,906,351.99 261,711,137.65 3,382,047.45
Other remarks:
The company participates in endowment insurance and unemployment insurance programs established by the government according
to provisions, whereby the company pays contributions each month according to the rules of social security bureau; apart from the
aforesaid monthly contributions, the company will no longer assume further payment obligation and the corresponding expenditures
are charged to the current profit and los or costs of related assets as and when incurred.
There was no amount in arrears in the payroll payable; the wage, bonus, allowance and subsidy are expected to be fully paid in
July-August 2021, and the social insurance contributions will be paid to the social security bureau in July 2021.
27. Taxes payable
Unit: Yuan
Item Ending balance Beginning balance
VAT 29,087,224.58 24,954,450.16
Enterprise income tax 165,704,666.43 156,505,394.21
Personal income tax 18,212,450.41 21,929,216.22
Urban maintenance and construction tax 3,279,083.81 1,569,173.62
Educational surcharge 1,524,652.39 764,483.27
Local educational surcharge 1,023,463.96 517,741.79
Water conservancy fund 426,019.69 534,006.08
Land use tax 9,575,243.06 9,693,891.67
Real estate tax 9,106,527.70 8,013,176.77
Stamp duty 8,653,884.05 9,031,071.46
Others 13,199,878.15 10,892,007.68
Total 259,793,094.23 244,404,612.93
28. Other payables
Unit: Yuan
344
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Item Ending balance Beginning balance
Dividends payable 76,787,941.75 76,703,390.04
Other payables 3,567,342,907.71 4,438,591,253.16
Total 3,644,130,849.46 4,515,294,643.20
(1) Dividends payable
Unit: Yuan
Item Ending balance Beginning balance
Dividends on ordinary shares 76,787,941.75 76,703,390.04
Total 76,787,941.75 76,703,390.04
Other remarks, including important dividends payable that are unpaid beyond 1 year, the reasons for non-payment shall be disclosed:
Item Ending balance Beginning balance Reasons for non-payment
beyond 1 year
1. Dividends on ordinary shares 76,787,941.75 76,703,390.04
Wherein: Exceptional Assets Limited 66,325,884.32 65,356,766.04
Rongda Agricultural Development Co., Ltd 10,000,000.00 10,000,000.00 Already declared, but not yet
claimed by the opposite party.
Ou Yongji 841,640.00
Donghui Group Co., Ltd 504,984.00
Hu Junming 360,000.00
Zhang Jinfei 102,057.43
2. Dividends on preferred shares\perpetual bonds classified
as equity instrument
Total 76,787,941.75 76,703,390.04
(2)Other payables
1) Other payables presented by nature of amount
Unit: Yuan
Item Ending balance Beginning balance
Temporary borrowings 408,735,990.83 979,908,032.56
Various deposits and margins temporarily
2,759,217,883.87 2,937,279,544.08
retained
Managed secured funds 38,544,018.01 45,867,305.93
Accrued expenses 186,272,100.64 121,208,960.22
Payments for share transfer 90,244,543.44 288,102,056.28
345
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Others 84,328,370.92 66,225,354.09
Total 3,567,342,907.71 4,438,591,253.16
2) Important other payables aged over 1 year
Unit: Yuan
Reasons for non-repayment or
Item Ending balance
carry-forward
Not carried forward due to pending
South Hope Industrial Co., Ltd 143,998,704.00 completion of paperwork for equities and
title
Lvliang Elephant Farming Technology
51,276,980.25 Temporary borrowings
Co., Ltd
Nangong City Civil Affairs Bureau 57,000,000.00 Temporary borrowings
Qingshui Township Government 31,883,076.50 Temporary borrowings
Not carried forward due to pending
Yantai Hongda Food Co., Ltd 22,000,000.00 completion of paperwork for equities and
title
Qingdao Shangyu Down Feather Group
20,290,000.00 Temporary borrowings
Co., Ltd
Fanxian Zhuowang Down Products Co.,
16,480,924.51 Deposit
Ltd
Anhui Huaying Xintang Down Co., Ltd 12,000,000.00 Deposit
Lv Yindong 10,061,466.52 Deposit
Anhui Xinhua Ducks Co., Ltd 9,071,000.00 Temporary borrowings
State-owned Assets Supervision and
Administration Commission of Yangling 9,000,000.00 Temporary borrowings
Demonstration Area
Zhang Xin 7,158,506.00 Temporary borrowings
Taiqian Shunhe Down Products Co., Ltd 6,000,000.00 Deposit
Anhui Beihai Down Products Co., Ltd 6,000,000.00 Deposit
Yu Lina 5,280,000.00 Deposit
Total 407,500,657.78 --
Other remarks
29. Noncurrent liabilities due within one year
Unit: Yuan
346
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Item Ending balance Beginning balance
Long-term borrowings due within one year 3,754,523,889.87 1,933,370,637.52
Long-term payables due within one year 0.00 6,000,000.00
Lease liabilities due within one year 272,943,882.40 234,040,932.00
Interest payable on long-term borrowings
25,689,058.03 19,698,724.04
due within one year
Interest payable on long-term borrowings 41,095,711.43 29,591,452.04
Interest payable on payable bonds 69,632,868.02 63,266,099.24
Total 4,163,885,409.75 2,285,967,844.84
Other remarks:
(1) Long-term borrowings due within one year:
Item Ending balance Beginning balance
Pledge loans 161,666,600.00 134,666,600.00
Mortgage loans 58,099,335.80 44,280,127.60
Guaranteed loans 2,331,764,460.20 718,883,009.92
Credit loans 1,202,993,493.87 1,035,540,900.00
Total 3,754,523,889.87 1,933,370,637.52
Note 1: long-term borrowings due within one year are detailed in Note VII. (31) Long-term borrowings.
Note 2: bonds payable due within one year are detailed in Note VII. (33) Bonds payable.
30. Other current liabilities
Unit: Yuan
Item Ending balance Beginning balance
Short-term payable bonds 1,013,537,500.00
To be transferred to output tax 60,529,747.86 26,749,946.72
Total 60,529,747.86 1,040,287,446.72
Increase or decrease in short-term payable bonds
Unit: Yuan
Amortizati
Interest Endin
on of
Bond Date Bond Beginning Currentl accrued at Currently g
Nominal value Issue amount premium
name issued period balance y issued nominal repaid balanc
and
value e
discount
Short-ter
9
m 1,000,000,000. 2020-05- 999,100,000. 1,013,537,500. 2,737,500. 1,016,425,000.
month 150,000.00 0.00
financing 00 15 00 00 00 00
s
bills
347
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
999,100,000. 1,013,537,500. 2,737,500. 1,016,425,000.
Total -- -- -- 150,000.00 0.00
00 00 00 00
Other remarks:
31. Long-term borrowings
(1) Long-term borrowings by category
Unit: Yuan
Item Ending balance Beginning balance
Pledge loans 1,600,842,100.00 1,707,125,400.00
Mortgage loans 268,250,000.00 276,620,000.00
Guaranteed loans 19,107,555,575.04 12,423,514,669.07
Credit loans 11,318,335,669.39 8,494,548,566.60
Total 32,294,983,344.43 22,901,808,635.67
Remarks on categorization of long-term borrowings:
(1) Pledge loans and pledges are as follows:
Pledge details Amount of pledge loan
Long-term borrowings Long-term borrowings due
within one year
100% equities in Fucheng Xinhao Farming Co., Ltd 56,667,200.00 18,888,800.00
100% equities in Gaomi Xinliu Farming Technology Co., Ltd 200,000,000.00 27,000,000.00
44.18% equities in Huanghua Xinhao Technology Co., Ltd 102,000,000.00
100% equities in Raoyang Xinhao Farming Co., Ltd 191,332,900.00 63,777,800.00
100% equities in Baiyin New Hope Farming Technology Co., 227,000,000.00 15,000,000.00
Ltd
76.92% equities in Kangping Xinwang Farming Co. Ltd 194,000,000.00 10,000,000.00
39.34% equities in Xiangzhou Xinhao Farming Co., Ltd 150,000,000.00
100% equities in Zhucheng Xinliu Farming Technology Co., 198,050,000.00 27,000,000.00
Ltd
55.82% equities in Huanghua Xinhao Technology Co., Ltd, 281,792,000.00
60.66% equities in Xiangzhou Xinhao Farming Co., Ltd, and
50% equities in Beijing Meihao Meideling Food Co., Ltd
Total 1,600,842,100.00 161,666,600.00
(2) The mortgage loans and asset mortgages are presented as follows:
Collaterals Original book Amount of mortgage loan
value of collateral Long-term Long-term borrowings
borrowings due within one year
Land and houses of Beijing Kinghey Food Co., Ltd 185,463,534.24 92,000,000.00 5,000,000.00
348
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Land and houses of Guanghan Guoxiong Feed Co., Ltd and 42,903,961.14 100,000,000.00 30,000,000.00
Chengdu Century Investment Co., Ltd
Land of Mianyang New Hope Liuhe Farming Technology Co., Ltd 7,233,971.60 47,250,000.00 5,070,000.00
Land and factory buildings of New Hope Singapore Biotechnology 42,049,481.68 - 18,029,335.80
Ltd
Land of Taizhou New Hope Agriculture Co., Ltd 37,217,523.75 29,000,000.00 -
Total 314,868,472.41 268,250,000.00 58,099,335.80
(3) The details of guaranteed borrowings are presented as follows:
Names of the guarantor and the guaranteed Ending balance of guaranteed loans
Long-term borrowings Long-term borrowings due
within one year
Guarantee provided by New Hope Liuhe Co., Ltd for Jiangmen Liuhe 100,000,000.00 -
Feed Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Beijing Kinghey Food 47,127,120.67 2,500,000.00
Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Yangling Besun 70,000,000.00 16,500,000.00
Agricultural Industry Group Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Shuozhou Xinhao 288,000,000.00 8,000,000.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Rugao Xinhao 50,000,000.00 -
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Yanting Xinhao 149,783,000.00 18,380,000.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Xiajin New Hope 88,587,000.00 -
Liuhe Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Hubei Xinhao 602,564,786.56 15,862,384.80
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Huanghua Xinhao - 160,000,000.00
Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Jiaxia ng New Hope 84,000,000.00 42,000,000.00
Liuhe Swine Breeding Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Liaocheng Xinhao 120,319,454.33 48,127,581.74
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for La iyang Xinhao 182,000,000.00 12,000,000.00
Livestock Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Tangshan Xinhao 717,100,000.00 42,255,000.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Gaotang Xinha o 142,818,327.65 24,269,018.23
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Hebei Xinhao 223,460,000.00 30,770,000.00
Fucheng Agricultural Technology Co., Ltd
349
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Donghai Xinhao 140,000,000.00 40,000,000.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Dong’e New Hope 152,000,000.00 28,000,000.00
Liuhe Swine Breeding Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Liaoning Xinwang 806,421,600.00 111,200,000.00
Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Kangping Xinwang 160,000,000.00 27,500,000.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Guangyuan Xinhao 320,000,000.00 30,000,000.00
Agricultural Development Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Changyi Xinhao 95,000,000.00 3,750,000.00
Livestock Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Hainan Lingao Xinliu 65,000,000.00 15,000,000.00
Breeding Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Anyang Xinliu 193,000,000.00 7,000,000.00
Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Baiyin New Hope 42,500,000.00 5,000,000.00
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Yijun Xinliu 153,500,000.00 11,500,000.00
Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Caoxian Xinhao 240,002,800.00 9,997,200.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Ningming Xinhao 360,000,000.00 40,000,000.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Wuqi Xinliu 95,000,000.00 15,000,000.00
Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Taiqian Xinliu 193,000,000.00 7,000,000.00
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Shenze New Hope 188,510,002.00 10,110,000.00
Liuhe Breeding Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Weinan Xinliu 507,599,900.00 54,400,100.00
Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Laixi New Hope 373,887,960.17 31,060,806.92
Liuhe Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Suixi Xinhao Farming 40,000,000.00 -
Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Fuping Xinliu 76,000,000.00 7,000,000.00
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Hezhou Xinhao 315,000,000.00 35,000,000.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Zhaoqing Xinhao 216,000,000.00 -
Farming Co., Ltd
350
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Gansu New Hope 134,996,600.00 15,003,400.00
Liuhe Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Wulian Xinhao 75,416,666.40 25,583,333.60
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Xinji Xinliu Farming 386,000,000.00 14,000,000.00
Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Beijing Xinliu 208,183,522.98 28,000,000.00
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Neiqiu Xinliu 290,003,400.00 9,996,600.00
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Bijie Xinliu Farming 95,040,000.00 10,560,000.00
Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Wuhe New Hope 811,350,790.21 119,695,792.99
Liuhe Livestock Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Chenzhou Xinhao 362,250,000.00 40,250,000.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Heishan Xinliu 135,000,000.00 10,000,000.00
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Nanning Xinliu 112,500,000.00 12,500,000.00
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Chongqing Pengshui 90,000,000.00 10,000,000.00
Xinliu Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Puyang Xinliu 200,000,000.00 -
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Yingcheng Xinhao 388,263,157.89 16,529,836.19
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Raoyang Xinhao 50,000,000.00 -
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Juye Xinhao Farming 217,500,000.00 42,500,000.00
Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Xingren Xinliu 99,000,000.00 11,000,000.00
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Ningbo New Hope 131,250,000.00 18,750,000.00
Liuhe Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Liuzhou Xinliu 85,000,000.00 -
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Guigang Xinliu 145,000,000.00 -
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Zibo Xinhao Farming 19,800,000.00 200,000.00
Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for New Hope Singapore 2,261,035,000.00 -
Pte., Ltd
351
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Sichuan New Hope 458,000,000.00 442,000,000.00
Liuhe Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Nanchong New Hope 45,000,000.00 5,000,000.00
Feed Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Laiyang Xinmu 67,000,000.00 3,000,000.00
Breeding Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Hengnan Muyun 126,000,000.00 14,000,000.00
Eco-agriculture Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Shandong New Hope 40,000,000.00 100,000,000.00
Liuhe Group Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Hainan Dengmai New 42,500,000.00 4,500,000.00
Hope Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Chongqing New 175,000,000.00 -
Hope Feed Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Laibin Xinhao 266,800,000.00 20,300,000.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Ruzhou Quansheng 84,000,000.00 -
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Anyue New Hope 38,904,767.00 4,095,233.00
Liuhe Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Longhui New Hope 42,900,000.00 12,100,000.00
Hop Hope Liuhe Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Dongying Xinhao 420,000,000.00 60,000,000.00
Modern Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Hengyang Xinhao 81,863,500.00 14,446,500.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Liquan New Hope 142,000,000.00 30,000,000.00
Liuhe Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Ruian New Hope 50,000,000.00 -
Liuhe Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Shanxian Xinhao 100,200,000.00 14,800,000.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Guanling Xinmu 125,200,000.00 4,800,000.00
Breeding Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Tongcheng Xinliu 145,556,574.22 14,166,067.45
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Nanjing Xinmu 80,285,716.00 25,107,143.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Zhejiang Yihai 149,486,875.00 15,563,125.00
Agricultural Development Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Yantai Xinhao 208,870,685.80 35,911,059.40
Farming Co., Ltd
352
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Zhenjiang New Hope 110,000,000.00 90,000,000.00
Liuhe Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Chongqing Qianjiang 136,550,000.00 3,450,000.00
District Xinhao Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Yanyuan Xinliu 140,000,000.00 -
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Jiangxi New Hope 167,000,000.00 -
Liuhe Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Changle New Hope 30,320,000.00 3,790,000.00
Liuhe Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Tianjin Xinliu 147,664,169.15 13,352,398.52
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Lezhi Xinmu Farming 205,200,000.00 10,800,000.00
Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Xiajiang Xinliu 52,500,000.00 7,500,000.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Pucheng Xinliu 131,581,467.32 18,797,355.36
Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Meishan Xinmu 142,500,000.00 7,500,000.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Julu Xinliu Farming 67,550,000.00 8,450,000.00
Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Longhai New Hope 17,500,000.00 2,500,000.00
Liuhe Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Guangyuan Xinchi 8,000,000.00 -
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Pizhou New Hope 180,000,000.00 -
Liuhe Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Luding Xinyue 44,000,000.00 3,000,000.00
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Pingyuan Xinliu 106,190,476.00 3,809,524.00
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Shiyan Xinyue 78,625,000.00 6,375,000.00
Farming Technology Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Rongxian Xinmu 142,000,000.00 2,000,000.00
Farming Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Xiangshan Huatong 100,000,000.00 -
Livestock Co., Ltd
Guarantee provided by New Hope Liuhe Co., Ltd for Guangan Xinhao 220,524,678.98 25,830,000.00
Farming Co., Ltd
Guarantee provided by Guangan Agricultural Development Corporation for 63,007,051.14 7,380,000.00
Guangan Xinhao Farming Co., Ltd
353
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Guarantee provided by Guangan Xiaoping Hometown Development Fund 31,503,525.57 3,690,000.00
Management Co., Ltd for Guangan Xinhao Farming Co., Ltd
Total 19,107,555,575.04 2,331,764,460.20
Other remarks, including range of interest rates:
The range of interest rate on the ending long-term borrowings of the company was 3.05%-4.75%.
354
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
32. Bonds payable
(1) Bonds payable
Unit: Yuan
Item Ending balance Beginning balance
Convertible corporate bonds 833,690,695.73 813,813,222.55
Medium-term notes 3,990,550,610.81 1,994,730,486.00
Total 4,824,241,306.54 2,808,543,708.55
(2) Increase or decrease in bonds payable (excluding preferred shares, perpetual bonds and other financial instruments classified as financial liabilities)
Unit: Yuan
Converted
Minus: bonds
Bond Interest Amortization into shares
Date Beginning Currently payable due
Bond name Nominal value perio Issue amount Currently issued accrued at of premium in the Ending balance
issued balance repaid within one
d nominal value and discount current
year
period
Medium-ter 2,000,000,000.0 2020-03-0 3 1,992,800,000.0 1,994,730,486.0 68,600,000.0 22,866,666.7 1,995,916,257.2
91,466,666.72 1,185,771.21
m notes 09 years 0 0 0 2 1
Convertible
4,000,000,000.0 2020-01-0 6 3,986,000,000.0 20,054,414.9 176,941.7 14,099,534.6
corporate 813,813,222.55 14,099,534.63 833,690,695.73
03 years 0 0 2 3
bonds
16 New
Hope 2,000,000,000.0 2021-03-1 3 1,994,000,000.0 1,994,000,000.0 32,666,666.6 1,994,634,353.6
32,666,666.67 634,353.60 0.00
Medium 09 years 0 0 7 0
Term Note
355
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
7,972,800,000.0 2,808,543,708.5 1,994,000,000.0 138,232,868.0 21,874,539.7 68,600,000.0 176,941.7 69,632,868.0 4,824,241,306.5
Total -- -- --
0 5 0 2 1 0 2 2 4
356
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
(3) Remarks on conditions and time of conversion into shares for convertible corporate bonds
According to the “Approval of Public Issue of Convertible Corporate Bonds by New Hope Liuhe Co., Ltd” issued by CSRC (CSRC
permit 【2019】No. 1902), the company publicly issued 40 million convertible corporate bonds each having a par value of 100 Yuan
on January 3, 2020, for a total issue amount of 4.0 billion Yuan and a bond period of 6 years.
The nominal rate of convertible corporate bonds issued this time is 0.20% for the first year, 0.40% for the second year, 0.80%
for the third year, 1.20% for the fourth year, 1.60% for the fifty year and 2.00% for the sixth year, with interest payable per year and
the conversion period from the first trading day (July 9, 2020) after six months of the end of this issue of convertible bonds (January
9, 2020, T+4) to the expiry date of the convertible bonds (January 2, 2026). Holders may apply for conversion into shares within the
conversion period.
The initial conversion price of convertible corporate bonds issued this time is 19.78 Yuan/share, which is no lower than the
average trading price of A-share stocks of the company in 20 trading days prior to the date of announcement of Offering Circular (if
share price adjustments occurred due to ex-right and ex-dividend within such 20 trading days, the average trading price of trading
days before adjustment is calculated by the price after corresponding ex-right and ex-dividend adjustments) and the average trading
price of A-share stocks of the company on the immediately preceding trading day.
On April 28, 2020, the company held its 2019 annual general meeting, deliberating and passing the “2019 Annual Profit
Distribution P lan”, whereby the company distributes cash dividend of RMB 1.50 Yuan (pretax) per 10 shares to all shareholders
based on the total shares on the record date designated in the 2019 annual profit distribution implementation announcement. This
profit distribution plan has been fully implemented, so that the conversion price of the company was adjusted from 19.78 Yuan/share
to 19.63 Yuan/share, effective as of June 19, 2020.
On September 18, 2020, with the “Approval of Private Placement of Stocks by New Hope Liuhe Co., Ltd” (CSRC permit
[2020] No. 1961) issued by CSRC, the company privately placed 177,147,918 RMB ordinary shares (A shares) to two specific
investors by means of private placement of stocks, with related shares already registered with CSDC Shenzhen with re spect to newly
issued shares and were listed on Shenzhen Stock Exchange on October 29, 2020, for an issue price of 22.58 Yuan/share. The
convertible bonds issued this time have entered the conversion period at July 9, 2020, and the total share capital of t he company after
this issue was increased to 4,504,101,656 shares if calculated based on the total share capital of 4,326,953,738 shares of the company
as of September 18, 2020. According to the related terms of the convertible corporate bonds, the convers ion price of “Hope
Convertible Bonds” will be adjusted from 19.63 Yuan/share to 19.75 Yuan/share as of October 29, 2020. The adjusted conversion
price took effect as of October 29, 2020.
(4) Remarks on other financial instruments classified as financial liabilities
Basic information about other financial instruments issued and outstanding at the end of period such as preferred shares and perpetual
bonds
None
33. Lease liabilities
Unit: yuan
Item Ending balance Beginning balance
Lease payments 8,017,384,648.87 7,429,147,725.51
Unrecognized financing costs -2,904,009,396.98 -2,790,381,411.98
357
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Total 5,113,375,251.89 4,638,766,313.53
34. Deferred income
Unit: yuan
Beginning
Item Current increase Current decrease Ending balance Causes of formation
balance
Government subsidy 275,670,133.40 52,457,550.00 17,026,200.23 311,101,483.17
Unrealized income on
-129,522.48 180,719.66 51,197.18 Sale-leaseback
sale-leaseback
Total 275,540,610.92 52,638,269.66 17,077,397.41 311,101,483.17 --
Items involving government subsidy:
Unit: yuan
Current Ot
amount Current he
Current Asset-rel
Current charged amount r
Beginning amount ated/inco
Items of liabilities amount of to charged ch Ending balance
balance charged to me-relat
new subsidies non-busi against costs an
other income ed
ness and expenses ge
revenue s
Aba Yak—yak industry
chain technology research Asset-rel
300,300.00 300,300.00
and intetgration ated
demonstration project
Aba Yak—fixed assets in
support of the healthy Asset-rel
293,023.44 16,631.76 276,391.68
cattle farming ated
demonstration center
Aba Yak-- Technical
renovation of cattle and Asset-rel
127,774.09 4,714.68 123,059.41
sheep slaughtering ated
production line
Aba Yak—slaughtering
Asset-rel
wastewater treatment 69,808.41 19,999.98 49,808.43
ated
project
Aba Yak-- Subsidy for
Asset-rel
Southwest University for 64,600.00 64,600.00
ated
Nationalities
Aba Yak—high-quality Asset-rel
39,522.33 7,185.84 32,336.49
forage grass ated
358
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
demonstration base
Anyang Liuhe—land Asset-rel
1,591,027.74 22,097.64 1,568,930.10
grant fee rebate ated
Anyang Liuhe—interest Income-r
92,133.35 92,133.35 0.00
subsidy against pandemic elated
Baoji Jinfeng—subsidy
Asset-rel
for breeding pig farm 1,000,000.00 33,194.46 966,805.54
ated
construction
Baoji New Hope—special
Asset-rel
subsidy for boiler 112,000.12 7,999.98 104,000.14
ated
demolition and renovation
Baoji Hope-Subsidy for
Asset-rel
technical renovation of 84,978.70 1,287.54 83,691.16
ated
vertical silos
Baoji New
Hope—integration of IT
application with
Asset-rel
industrialization project 87,907.00 14,651.16 73,255.84
ated
(workshop electric control
and automated computer
batching system)
Baoji New
Asset-rel
Hope—subsidy for feed 565,789.68 13,157.88 552,631.80
ated
plant project
Baoji New Hope—2020
Asset-rel
SME technical renovation 60,000.00 60,000.00
ated
program bonus
Kinghey--Subsidy for
Asset-rel
energy-saving technical 402,407.17 65,255.28 337,151.89
ated
renovation project
Kinghey--Subsidy for
Asset-rel
water-saving renovation 5,000.00 5,000.00 0.00
ated
project
Kinghey--Subsidy for
Asset-rel
cold chain logistics 3,816,818.35 73,636.32 3,743,182.03
ated
project
Beijing Kinghey—subsidy
for central additional Asset-rel
625,000.00 154,000.00 471,000.00
investment in cold chain ated
logistics
359
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Beijing Xinliu—subsidy
from the swine industry Asset-rel
20,400,000.00 280,500.00 20,119,500.00
optimization and ated
improvement program
Besun Bigong-- Funding
of Yangling
Demonstration Area
Asset-rel
Bureau of Finance for 714,000.00 714,000.00
ated
Efficient and Safe Pig
Feed Production Line
Construction Project
Besun Food-- Funds for
standardized Asset-rel
600,000.00 100,000.00 500,000.00
transformation project of ated
slaughtering companies
Changyi
Asset-rel
Xinhao—agricultural 150,000.00 1,250.00 148,750.00
ated
machinery subsidy
Chenzhou
Asset-rel
Xinhao—environmental 200,000.00 200,000.00
ated
protection subsidy
Chongren Xinchi—variety Asset-rel
527,700.00 90,450.00 437,250.00
introduction subsidy ated
Livestock Technology--
Construction and
Asset-rel
integrated application of 1,250,000.00 1,250,000.00
ated
safe, efficient biological
feed technology system
Livestock Technology--
Livestock and poultry Asset-rel
1,000,000.00 1,000,000.00
product quality and safety ated
control laboratory project
Livestock Technology--
technology for production Asset-rel
70,000.00 70,000.00
of high-digestion-rate ated
piglet
Livestock
Technology—Chengdu
Income-r
Drifters 200,000.00 200,000.00
elated
Program—low-resistance
technology research for
360
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
livestock and poultry
feeds
Livestock
Technology—Chengdu
Drifters
Program—technology of Income-r
150,000.00 150,000.00
reducing emissions of elated
trace elements from
livestock and poultry
feeds
Livestock
Technology--The
Chengdu Drifters
Asset-rel
program—feed 250,000.00 250,000.00
ated
ingredients
bio-fermentation
pretreatment technology
Livestock
Technology--The
Chengdu Drifters
program—establishment Asset-rel
150,000.00 150,000.00
of effective nutrient ated
assessment and
forecasting system for raw
materials
Livestock
Asset-rel
Technology—lab 400,000.00 400,000.00
ated
renovation project
Livestock
Technology—Feed Asset-rel
38,000.00 38,000.00
industry analysis and ated
testing platform
Livestock Technology--
Development of new-type Asset-rel
200,000.00 200,000.00
microecologics and ated
biological feed.
Livestock
Asset-rel
Technology—Zhuge Elite 1,800,000.00 600,000.00 2,400,000.00
ated
Program
Daqing Liuhe—support Asset-rel
4,303,700.00 200,000.00 4,103,700.00
funding ated
361
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Shanxian
Food—counterpart
Asset-rel
funding for 8,170,000.26 94,999.98 8,075,000.28
ated
government-supported
infrastructure construction
Government subsidy for
Asset-rel
boiler renovation of 59,520.00 7,440.00 52,080.00
ated
Dezhou Jinshan
Dezhoou
Jinshan—government Asset-rel
962,850.00 117,900.00 844,950.00
subsidy for refrigerating ated
equipment
Fenglan
Technology--Cultivation
and industrialization
demonstration of
“Guoxiong” branded
Income-r
biological 110,000.32 27,499.98 82,500.34
elated
high-performance
compound feed for pigs
and compound feed for
high-survival-rate grass
carp breeding.
Fenglan Technology--
Research and
industrialization of
Income-r
integrated key technology 300,000.00 300,000.00
elated
for production of safe and
high-digestion-rate piglet
feed
Fenglan Technology--
Project of transformation
and application of Income-r
56,672.38 6,182.46 50,489.92
biological extraction of elated
Lutein crystals based on
dried marigold
Fenglan
Technology--Developmen Income-r
17,799.68 4,450.02 13,349.66
t and production of elated
microecologics products
Fenglan Technology-- Income-r
39,999.68 10,000.02 29,999.66
Industrialized application elated
362
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
of new-type, safe and
efficient pig feed.
Fenglan Technology--
Development and
Income-r
industrialization of 886,558.47 121,771.08 764,787.39
elated
new-type microecologics
and biological feed.
Fenglan Technology--
Pilot plant test and
industrialization Income-r
8,000.32 1,999.98 6,000.34
demonstration of nutrition elated
regulation technology for
healthy pig breeding
Fuxin Hehui—2015
Fumeng County
standardized Asset-rel
2,215,277.93 41,666.64 2,173,611.29
eco-construction poroject ated
of large livestock and
poultry farms
Fuxin Farming—land Asset-rel
5,363,610.63 58,725.66 5,304,884.97
grant fee rebate ated
Fuyang Liuhe—land Asset-rel
3,512,115.51 42,104.46 3,470,011.05
leveling subsidy ated
Gansu
Asset-rel
Xinhao—equipment 200,000.00 12,609.25 187,390.75
ated
subsidy
Gaomi Swine
Breeding--Subsidy for Asset-rel
275,355.31 11,873.10 263,482.21
standardized breeding ated
operations
Gaotang Rongda
Asset-rel
Feed—land grant fee 2,477,999.78 29,500.02 2,448,499.76
ated
rebate
Gaotang Xinhao—subsidy Asset-rel
600,000.00 37,500.00 562,500.00
for fermentation banks ated
Joint-stock company
HQ—a prioritized project
Income-r
of “Belt and Road” and 3,000,000.00 3,000,000.00
elated
international capacity
cooperation
Joint-stock company 699,710.00 699,710.00 Asset-rel
363
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
headquarters- Research of ated
AI-based rapid
identification and
containment technology
system for drug-resistant
bacteria transmitting
between humans and
poultry (special project)
Joint-stock company
headquarters—Research
of comprehensive
prevention and control of
Asset-rel
main infectious diseases 187,772.64 121,618.05 66,154.59
ated
of poultry and
international cooperation
platform construction
project (special project)
Joint-stock company
headquarters—“Excellent
Asset-rel
Plan” project of Tech City 450,000.00 450,000.00
ated
Talent Program (special
project)
Joint-stock company
headquarters—
Application and
Asset-rel
demonstration of efficient 291,482.82 37,429.25 254,053.57
ated
and safe breeding
technology for green
aquatic birds.
Joint-stock company
headquarters--Regulation
and mechanism formed by
daily ration composition Asset-rel
243,598.40 33,198.00 210,400.40
and feeding system on ated
healthy and high-quality
meat of livestock and
poultry
Joint-stock company
headquarters--Research
and development of Asset-rel
311,833.38 4,318.20 307,515.18
packaged technology and ated
equipment for treatment
and recycling of dead
364
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
livestock and poultry and
slaughtering wastes
(special project)
Joint-stock company Asset-rel
300,000.00 78,884.25 221,115.75
headquarters-- ated
Joint-stock company
headquarters—formulatio
Asset-rel
n of a standard “Feed 50,000.00 50,000.00
ated
ingredients soy protein
concentrate”
Joint-stock company
headquarters-formulation
Asset-rel
of a standard “Feed 50,000.00 50,000.00
ated
ingredients Stone
Powder”.
Gushi Liuhe—fiscal
interest subsidy for Income-r
156,100.00 156,100.00 0.00
epidemic containment elated
loans
Guantao Feed—subsidy
for low-nitrogen Asset-rel
57,321.45 3,214.26 54,107.19
renovation of gas-fired ated
boilers
Guangan
Xinhao-government Income-r
162,562.01 162,562.01 0.00
funding for epidemic elated
prevention
Guanghan
Asset-rel
Guoxiong--Subsidy for 61,333.24 4,000.02 57,333.22
ated
boilers
Guanglv Xinliu—subsidy
for the second phase of Asset-rel
1,783,055.60 305,665.60 1,477,390.00
swine variety introduction ated
in Hangzhou
Guanglv Xinliu-subsidy Asset-rel
5,180,000.00 431,664.00 4,748,336.00
for a 10,000-pig farm ated
Guanglv Xinliu—subsidy
for the first phase of Asset-rel
3,566,111.11 611,332.56 2,954,778.55
variety introduction in ated
Xiaoshan District
Guanglv 57,842.00 22,432.16 35,409.84 Asset-rel
365
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Xinliu—Xiaoshan District ated
subsidy for improved
varieties of live pigs
Guangyuan Xinhao—20
Asset-rel
subsidy for large-scale pig 500,000.00 2,083.33 497,916.67
ated
farm construction
Guangzhou Hope--
Demonstration of efficient
bacteria and algae
Income-r
wastewater recycling 46,563.25 240,000.00 46,563.25 240,000.00
elated
system and low-resistance
feed products optimized
by big data
Guangzhou
Asset-rel
Hope—subsidy for motor 79,821.71 8,491.65 71,330.06
ated
renovation
Guangzhou Hope--
Guangdong Provincial
Modern Agricultural
Income-r
Industry Technology 36,761.30 36,761.30
elated
System Innovation Team
Building (Feed Industry)
Program
Guangzhou
Asset-rel
Hope—subsidy for boiler 80,000.12 6,666.65 73,333.47
ated
renovation
Guilin New
Hope—600-type unit of Asset-rel
87,750.00 13,500.00 74,250.00
pig feed production line in ated
Guilin
Hanzhong
Hope—government Asset-rel
94,499.99 9,000.00 85,499.99
subsidy for coal-to-gas ated
transformation of boilers
Hebei Farming-- Live pig
project for shopping Asset-rel
60,000.00 15,000.00 45,000.00
basket program in ated
Kuancheng
Hebei Farming-- Subsidy
Asset-rel
for shopping basket 66,666.66 25,000.00 41,666.66
ated
program in Kuancheng
366
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Farming--Subsidy for
construction of
Asset-rel
standardized, large-scale 51,666.24 25,000.00 26,666.24
ated
live pig breeding farm in
Kuancheng
Farming-- Standardized,
large-scale live pig
Asset-rel
breeding farm 120,000.00 22,500.00 97,500.00
ated
construction project in
Kuancheng
Hebei Farming-- Subsidy
for biogas project Asset-rel
29,166.67 25,000.00 4,166.67
construction on ated
Kuancheng Breeding Base
Hebei
Farming—equipment
Asset-rel
subsidy for biogas project 28,750.00 15,000.00 13,750.00
ated
construction on
Kuancheng Breeding Base
Hebei Kinghey—subsidy
for boiler renovation using Asset-rel
78,750.00 11,250.00 67,500.00
special funding for air ated
pollution control
Hebei Kinghey--Subsidy
Asset-rel
for sewage treatment 550,000.00 24,999.96 525,000.04
ated
project
Hebei New Asset-rel
116,666.62 8,333.34 108,333.28
Hope—subsidy for boilers ated
Henan Dengzhou Asset-rel
50,087.05 2,086.95 48,000.10
Branch— boiler subsidy ated
Henan Dengzhou
Asset-rel
Branch—land grant fee 2,587,180.62 16,946.67 2,570,233.95
ated
rebate
Hezhou
Asset-rel
Xinhao—breeding farm 1,000,000.00 8,403.36 991,596.64
ated
construction subsidy
Hongyuan Yak—product
Asset-rel
showroom renovation 250,000.00 250,000.00 0.00
ated
project
Hongyuan Yak- subsidy Asset-rel
458,700.00 458,700.00
from Hongyuan County ated
367
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Bureau of Finance for
sewage treatment system
upgrading and renovation
project
Huzhou
Income-r
Haihuang—construction 442,200.00 442,200.00
elated
reward
Huaihua Xiangzhu—raw
Asset-rel
materials bulk packaging 24,000.00 2,400.00 21,600.00
ated
line
Huaihua New
Hope—construction of Asset-rel
1,500,916.82 20,749.98 1,480,166.84
standardized factory ated
buildings
Huanggang New
Asset-rel
Hope—government 4,649,555.23 17,904.94 4,631,650.29
ated
subsidy
Huanghua
Asset-rel
Xinhao—industry 810,000.00 45,000.00 765,000.00
ated
development fund
Porridge Jiahe—2018
SME development
Asset-rel
funding project for 450,000.00 450,000.00
ated
promotion of industrial
restructuring
Subsidy for low-nitrogen
renovation of gas Asset-rel
218,915.93 13,682.22 205,233.71
(oil)-fired boilers of ated
Porridge Jiahe in
Porridge Jiahe-- Project of
R&D and demonstration
Asset-rel
of packaged equipment of 585,000.00 585,000.00
ated
Chinese-styled automatic
central kitchens
Jiaxiang Food- reward for
Asset-rel
countryside revitalization 2,565,724.00 33,540.00 2,532,184.00
ated
project
Jiaxiang Food—subsidy
for modern efficient Asset-rel
541,666.60 32,500.02 509,166.58
livestock industry ated
development project
368
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Jiaxiang Food- Asset-rel
9,469,068.66 103,487.10 9,365,581.56
government land subsidy ated
Jiangmen Liuhe--The
Income-r
2019 support funding for 137,700.00 137,700.00
elated
technology development
Jiangmen Liuhe-- Reward
and subsidy for Income-r
272,538.92 90,066.00 182,472.92
large-sized industrial elated
enterprise R&D institution
Jiangmen Liuhe--Subsidy
Income-r
for engineering 123.39 123.39
elated
technology R&D center
Jiangyou Pig Farm--The
Asset-rel
“5.12” post-disaster 1,274,583.66 57,499.98 1,217,083.68
ated
reconstruction project
Jiangyou Pig
Farm—Swine industry
Asset-rel
park breeding-related 388,888.89 66,666.66 322,222.23
ated
technology research
project in Jiangyou city
Jiangyou Pig Farm—live
Asset-rel
pig industrialization 1,251,071.16 68,393.34 1,182,677.82
ated
project
Jiangyou Pig
Farm--Project of key
technology
Asset-rel
industrialization for 83,333.26 83,333.26 0.00
ated
healthy breeding of live
pigs and deep processing
of meat products
Jiangyou Pig
Asset-rel
Farm—sewage treatment 260,153.39 19,113.30 241,040.09
ated
system
Jieyang
Asset-rel
Guoxiong—subsidy for 84,266.57 6,400.02 77,866.55
ated
boiler renovation
Jinzhou New Asset-rel
80,980.73 1,010.10 79,970.63
Hope—bridge subsidy ated
Jinzhou New Hope—land Asset-rel
596,931.56 7,292.94 589,638.62
subsidy ated
369
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Junan Swine
Breeding—2015 modern Asset-rel
1,305,818.79 39,570.00 1,266,248.79
development funding ated
project
Junan Swine Breeding--
Healthy breeding subsidy Asset-rel
156,766.67 4,380.00 152,386.67
for Lingquanchang live ated
pig business
Junan Swine
Breeding--Subsidy for
Asset-rel
Lingquanchang digital 675,003.33 49,998.00 625,005.33
ated
system management and
breeding equipment
Junan Swine
Breeding--Government
subsidy for Asset-rel
180,919.21 12,498.00 168,421.21
Lingquanchang ated
high-quality produces
base branding
Junan Swine Breeding--
Asset-rel
Subsidy for 540,000.00 15,000.00 525,000.00
ated
Lingquanchang showroom
Technology
Income-r
Venture—house rent 120,000.00 120,000.00
elated
subsidy
Laibin Xinhao—subsidy
Asset-rel
for livestock and poultry 2,842,001.16 49,000.02 2,793,001.14
ated
manure recycling project
Laibin Xinhao—subsidy
Asset-rel
for manure recycling 2,417,447.05 61,425.00 2,356,022.05
ated
construction project
Laibin
Xinhao—“on-the-job
Income-r
training” subsidy from 264,156.26 264,156.26 0.00
elated
Laibin Employment
Service Center
Laibin Xinhao—subsidy
Asset-rel
for construction of large 487,498.06 12,499.98 474,998.08
ated
pig farms
Laiwu Lelin—land Asset-rel
5,506,833.01 70,300.02 5,436,532.99
transfer fees ated
370
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Laiwu Liuhe Asset-rel
40,000.00 40,000.00
Food—boiler subsidy ated
Laiyang Liuhe—Yantai
two-hundred talent
program (technology
development, Income-r
200,000.00 100,000.00 100,000.00
demonstration and elated
promotion for efficient
eco-friendly feed formula
for broilers)
Lanzhou New
Hope—government
subsidy for coal-to-gas Asset-rel
131,666.53 10,000.02 121,666.51
transformation of boilers ated
(amortization of deferred
income-assets)
Lanzhou New
Hope—governmetn Income-r
13,400.00 51,400.00 26,600.00 38,200.00
subsidy for on-the-job elated
training
Leshan Farming--Subsidy
for irrigation pumping Asset-rel
4,687.75 2,812.50 1,875.25
stations on Fenquan Pig ated
Farm
Leshan Farming—subsidy Asset-rel
736,253.83 126,214.92 610,038.91
for fertile sows ated
Leshan Farming--Special
Asset-rel
funding for live pig 391,531.86 36,808.92 354,722.94
ated
industry chain
Leting Shengxiang—land Asset-rel
3,144,698.14 37,215.36 3,107,482.78
compensation ated
Leting Xinmeizi—land Asset-rel
10,360,000.00 420,000.00 9,940,000.00
subsidy (new) ated
Leting Xinmeizi
Breeding—subsidy for Asset-rel
87,446.22 4,813.56 82,632.66
beautiful countryside ated
construction
Lezhi Xinhai-live pig Asset-rel
50,688.00 50,688.00
insurance subsidy ated
Kinghey--Subsidy for Asset-rel
800,000.01 212,500.34 587,499.67
cold chain logistics ated
371
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Liaocheng
Asset-rel
Xinhao—subsidy for 780,795.02 43,377.48 737,417.54
ated
agricultural machinery
Linmu Swine Breeding--
Asset-rel
subsidy for agricultural 134,166.73 4,999.98 129,166.75
ated
machinery
Linyi Yihe—government Income-r
125,848.70 125,848.70
risk compensation elated
Linyi
Refrigeration—Solar
Asset-rel
energy 378,395.00 32,430.00 345,965.00
ated
subsidy—Decaiqizhi
【2017】No.6
Linyi Swine Breeding
Asset-rel
--Subsidy for major 185,000.15 18,499.98 166,500.17
ated
pig-exporting county
Linyi Swine
Breeding—government Asset-rel
912,723.86 34,087.01 878,636.85
subsidy for fermentation ated
tanks
Linyi Swine
Breeding--Government Asset-rel
26,639.96 1,480.02 25,159.94
subsidy for tank-type ated
tricycles
Liuhe Group--“China-EU
intergovernmental
Income-r
cooperation program”- 735,298.96 24,700.00 710,598.96
elated
EU Horizon SFS-46-2017
(special project)
Liuhe Group—research
and application of key
technology for high-yield Asset-rel
498,305.25 168,456.00 329,849.25
new strain breeding of ated
white-feathered meat
ducks (special project)
Liuhe Group-- Research
and development of
environment-friendly and Income-r
196,791.98 99,553.59 97,238.39
healthy breeding models elated
and products for livestock
and poultry (special
372
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
project)
Liuhe Group-- Research
of microbiological
degradation technology
Income-r
for mycotoxins in prawn 60,000.00 60,000.00
elated
feed
ingredients—Shandong
Province (special project)
Liuhe Group-- Research
of immunization program
for swine fever and Income-r
81,214.74 62,559.88 18,654.86
pseudorabies on elated
large-scaled pig farms
(special project)
Liuhe Group-- Chicken
and pig intestinal health
regulation and antibiotics Income-r
8,490.57 8,490.57
replacement technology elated
patent navigation project
(special project)
Liuhe Group—China-EU
food safety process Income-r
547,850.35 288,267.47 259,582.88
control system based on elated
digital IT (special project)
Liuhe Group-- Technical
center innovation capacity Asset-rel
333,054.87 333,054.87
building project (special ated
project)
Liuhe
Group—Technology
empowering economy
2020—promotion and
application of Income-r
1,646,861.97 403,246.67 1,243,615.30
foot-and-mouth disease elated
containment and
decontamination
technologies (special
project)
Liuhe Group—Project of
integration and Asset-rel
18,847.96 18,847.96
industrialization ated
demonstration of key
373
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
technologies for 3000t/a
marine biological
products for agricultural
use (special project)
Liuhe Group—screening
of marine drug sources for
non-antibiotic treatment
Asset-rel
of multi-drug resistance of 100,000.00 100,000.00
ated
poultry and livestock and
new drug development
(special project)
Liuhe Group- Research of
environment-friendly,
antibiotic-free feed Income-r
1,358,558.48 535,763.55 822,794.93
formulation technology elated
for meat poultry (special
project)
Liuhe Group—key
technology research and
demonstration for healthy,
Income-r
efficient and 210,063.21 6,942.57 203,120.64
elated
environment-friendly
breeding of meat ducks
(special project)
Liuhe Group--
Determination of acid
Income-r
soluble proteins in feed 4,429.49 4,429.49
elated
ingredients (special
project)
Liuhe Group-- Leading
talented industry
practitioners in
Taishan---promotion of
key technology for Income-r
2,713,428.40 320,659.24 2,392,769.16
selection and breeding of elated
important economic traits
of meat ducks and
cultivation of new strains
(special project)
Liuhe Group-- Use of
Income-r
fermentation technology 38,501.84 38,501.84
elated
to degrade mycotoxins in
374
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
feed ingredients for
prawns (special project)
Liuhe Group-- Method for
quick detection of
Income-r
Urea-formaldehyde 134.25 134.25
elated
polymer in fish meal
（special project）
Liuhe Group-- Research,
development and
application of new
Income-r
veterinary drugs and new 123,597.55 200,000.00 78,008.53 245,589.02
elated
additives of bacteriophage
for super bacteria (special
project)
Liuhe Group-- Research
of molecular mechanism
of resistance of plant Income-r
80,000.00 80,000.00
polyphenols to oxidative elated
stress of broilers (special
project)
Liuhe Group--
Demonstration and
promotion of
Income-r
foot-and-mouth disease 120,984.11 94,001.97 26,982.14
elated
decontamination on swine
breeding farms (special
project)
Liuhe Group- Research
and industrialization
promotion of key
technologies of Income-r
123,075.35 249,000.00 174,014.02 198,061.33
environment-friendly, elated
antibiotic-free feed for
swine and poultry
(special project)
Longhui Xinhai—manure Asset-rel
800,000.00 800,000.00
recycling program ated
Luzhou New
Asset-rel
Hope—subsidy for 109,841.58 9,415.02 100,426.56
ated
environmental protection
Luzhou New Income-r
6,000.00 6,000.00 0.00
Hope—subsidy from elated
375
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
grain bureau for
completion of forms
Luocheng Xinhao-manure
Asset-rel
fermentation tank project 1,000,000.00 11,111.12 988,888.88
ated
subsidy
Maoming Liuhe—subsidy Asset-rel
1,024,630.45 27,323.46 997,306.99
for technical renovation ated
Mianyang New
Asset-rel
Hope—industrial 2,955,893.00 152,892.00 2,803,001.00
ated
development funding
Nanchong New
Hope—technical
renovation and
Asset-rel
transformation and 521,875.00 15,625.00 506,250.00
ated
upgrading project (deep
processing of agricultural
products)
Nanchong New
Hope—project of
transformation of Asset-rel
402,500.00 10,937.50 391,562.50
scientific and ated
technological
achievements
Nanchong New
Hope—major industry
projects and technical
Asset-rel
renovation project with 1,768,229.12 52,083.35 1,716,145.77
ated
city-level industry
development funding in
Nanchong in 2017
Nanning New Income-r
936,150.00 936,150.00 0.00
Hope-interest subsidy elated
Nanning
Xinliu—government
Asset-rel
subsidy for 2020 pig 550,000.00 18,333.36 531,666.64
ated
production stabilization
project
Nantong Feed—subsidy Income-r
900.00 900.00 0.00
for disability elated
Pengshan New Income-r
100,000.00 8,333.33 91,666.67
Hope—industrial elated
376
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
development contribution
subsidy
Pengshan New Hope--
Research of integrated key
Income-r
technology for production 100,000.00 100,000.00
elated
of safe and
high-digestion-rate piglets
Pingdu
Asset-rel
Liuhe—government land 2,084,155.00 26,549.76 2,057,605.24
ated
subsidy
Pingxiang New Asset-rel
4,095,750.06 227,541.66 3,868,208.40
Hope—land use right ated
Qianjiang
Asset-rel
Xinhao—subsidy for 2,468,749.99 62,500.02 2,406,249.97
ated
construction project
Qujing Guoxiong—boiler Asset-rel
57,411.12 1,100.00 56,311.12
renovation subsidy ated
Rongchang P ig
Asset-rel
Farm—boar station 1,100,000.32 49,999.98 1,050,000.34
ated
construction project
Rongchang P ig
Asset-rel
Farm—sewage treatment 441,667.27 17,499.96 424,167.31
ated
plant project subsidy
Rongchang P ig
Asset-rel
Farm—subsidy for offsite 245,437.50 6,187.50 239,250.00
ated
fermentation bed project
Rongchang P ig
Asset-rel
Farm—subsidy for 140,456.25 76,612.50 63,843.75
ated
introduction of varieties
Rongchang P ig
Asset-rel
Farm—subsidy for pig 30,000.27 4,999.98 25,000.29
ated
resources
Rugao Xinhao—subsidy
Asset-rel
for manure recycling 947,379.07 52,689.12 894,689.95
ated
project
Ruyuan Xinhao—special
monetary subsidy for
Asset-rel
purchase of new-type 3,000,000.00 3,000,000.00
ated
equipment by agricultural
enterprises
377
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Santai Farming-- Subsidy
Asset-rel
for standardized pig farm 483,333.03 100,000.02 383,333.01
ated
construction
Santai Farming--Interest Asset-rel
341,667.69 133,333.68 208,334.01
subsidies ated
Santai Farming--Subsidy
Asset-rel
for manure recycling 25,776.56 25,776.56 0.00
ated
project
Santai Farming—fertile
Asset-rel
sow subsidy for Santai 531,300.00 46,735.14 484,564.86
ated
Farming
Santai Farming--Subsidy
Asset-rel
for major pig-exporting 162,499.73 25,000.02 137,499.71
ated
county project
Santai Farming--Subsidy
Asset-rel
for enclosure walls and 11,666.28 11,666.28 0.00
ated
roads
Santai Farming--Subsidy
Asset-rel
for a key modern animal 207,135.68 30,312.48 176,823.20
ated
husbandry project
Santai Farming--Subsidy Asset-rel
100,000.00 200,000.00 108,264.45 191,735.55
for project construction ated
Santai Farming --Subsidy Asset-rel
20,000.00 20,000.00 0.00
for post-disaster projects ated
Santai Farming --Subsidy
Asset-rel
for pig farm construction 97,916.87 12,499.98 85,416.89
ated
project
Shanghe Feed-boiler Asset-rel
177,777.70 16,666.68 161,111.02
subsidy ated
Shenze Xinhao—subsidy Asset-rel
16,291.65 850.02 15,441.63
for agricultural equipment ated
Centry
Investment—technical
renovation subsidy
received from Chengdu Asset-rel
821,666.50 85,000.02 736,666.48
High-tech District Bureau ated
of Economic
Development in
December 2015
Century Investment-key 650,000.00 9,687.00 640,313.00 Income-r
378
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
technology research and elated
integration demonstration
for quality and efficiency
improvement of swine
industry chain in Sichuan
(special program)
Century
Investment—development
and application of new Income-r
800,000.00 181,768.69 618,231.31
antibiotic-free healthcare elated
feed products for pigs
(special program)
Sichuan Xinke-- Research
and industrialization of
integrated key technology Asset-rel
130,000.00 130,000.00 0.00
for production of safe and ated
high-digestion-rate piglet
feed
Sichuan
Xinke—industrialized
application of key
Income-r
technology for healthy 100,000.00 100,000.00 0.00
elated
breeding of live pigs and
deep processing of meat
products
Sichuan Xinke--
Development and
Income-r
industrialization of 300,000.00 300,000.00 0.00
elated
new-type microecologics
and biological feed
Taian Jingwei Feed-2020
provincial-level industrial Income-r
10,000.00 10,000.00
transformation and elated
development
Taian Xinchi—pig Asset-rel
161,111.08 33,333.36 127,777.72
farming subsidy ated
Taihe New
Asset-rel
Hope-government land 943,820.00 47,184.00 896,636.00
ated
tax rebate
Tangshan Xinhao-subsidy Asset-rel
268,400.00 26,840.01 241,559.99
for agricultural machinery ated
379
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Tangshan
Asset-rel
Xinhao—agricultural 1,251,249.98 32,500.02 1,218,749.96
ated
project subsidy
Tangshan
Xinhao-government Asset-rel
2,739,889.58 47,858.32 2,692,031.26
subsidy for cleaning and ated
decontamination center
Tongling
Asset-rel
Huaren—subsidy for 2,220,191.25 73,597.50 2,146,593.75
ated
infrastructure construction
Tuanfeng New
Asset-rel
Hope—government land 169,611.72 23,666.64 145,945.08
ated
subsidy
Weifang
Heshengyuan-2017 Asset-rel
330,633.40 21,799.98 308,833.42
subsidy for technical ated
renovation of fixed assets
Weifang
Heshengyuan-2018 Asset-rel
1,536,149.93 93,100.02 1,443,049.91
subsidy for technical ated
renovation of fixed assets
Weifang
Heshengyuan—tax rebate Asset-rel
597,473.96 40,279.14 557,194.82
for imported equipment ated
for deli
Weifang
Asset-rel
Heshengyuan—rebate of 2,668,170.53 29,382.72 2,638,787.81
ated
land transfer fee
Weifang Liuhe--Research
and industrialization
promotion of key
Income-r
technologies of 367,200.00 367,200.00
elated
environment-friendly,
antibiotic-free feed for
swine and poultry
Weifang New
Hope—research and
integration of key Income-r
200,000.00 200,000.00
technologies for elated
high-value utilization of
unconventional protein
380
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
raw materials
Weifang New
Hope—research and
industrialization of key Income-r
197,300.00 197,300.00 0.00
technologies for efficient elated
and environment-friendly
laying hen feeds.
Weifang New
Asset-rel
Hope-compensation for 5,220,848.64 61,181.82 5,159,666.82
ated
land purchase
Weifang New
Hope-subsidy for
Income-r
two-new Party 3,000.00 3,000.00
elated
organization work
program
Weifang New
Asset-rel
Hope-compensation for 80,000.00 80,000.00
ated
road repairing
Weifang New
Income-r
Hope—Yuandu Talent 300,000.00 104,686.04 195,313.96
elated
Program
Weifang New Hope:
Research and
industrialization
promotion of key Income-r
333,100.71 558,590.00 405,039.17 486,651.54
technologies of elated
environment-friendly,
antibiotic-free feed for
swine and poultry
Weinan
Asset-rel
Zhengneng—subsidy for 22,000.00 12,222.20 9,777.80
ated
agricultural machinery
Wuhan
Guoxiong—government Asset-rel
291,333.25 19,000.02 272,333.23
subsidy for gas-fired ated
boilers
Wuhan Liuhe-subsidy for Asset-rel
62,500.00 62,500.00
newly built sheds ated
Wulong -government
Asset-rel
subsidy for private 39,999.82 10,000.02 29,999.80
ated
enterprise funding
381
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Wuwei Hope—subsidy
Asset-rel
for natural gas 51,333.19 4,000.02 47,333.17
ated
transformation
Tibet Linzhi—subsidy for
Asset-rel
harmless treatment of 24,928.00 24,928.00 0.00
ated
dead or sick pigs
Tibet Linzhi-- Subsidy for
Asset-rel
circular economy 301,866.82 76,399.98 225,466.84
ated
development
Hope Food—key
technology for industrial Income-r
316,000.00 316,000.00
production of elated
Sichuan-styled fast dishes
Hope Food-- Special grant
for application research of
Asset-rel
protein cross-linking 65,414.72 30,191.40 35,223.32
ated
technology in meat
processing
Hope Food-- Research,
development and
application of enzyme
Asset-rel
resistant starch recovery 255,720.00 63,930.00 191,790.00
ated
technology and new
products for high-end
meat products
Hope Food—Yak industry Asset-rel
132,300.00 14,700.00 117,600.00
chain project (phase II) ated
Hope Food—special
Asset-rel
funding for pig industry 72,449.33 72,449.33 0.00
ated
chain
HopeFood-- Research and
industrialization of key
technology for quick Asset-rel
29,007.36 13,979.76 15,027.60
frozen, prepared ated
flour-covered food
processing
Hope Food-- Research
and industrialization of
Asset-rel
key technology for quick 4,500.00 4,500.00 0.00
ated
frozen prepared food
processing
382
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Hope Food-- Funds for
the second batch of
projects for industrial
economic development in Asset-rel
716,183.49 36,231.90 679,951.59
outer suburbs of Chengdu ated
from Xinjin County
Bureau of Economic
Development
Hope Food- patent
portfolio for a kind of Income-r
100,000.00 100,000.00
meat product processing elated
method
Hope Food-- A kind of
Asset-rel
grain sausage and its 43,333.23 10,000.02 33,333.21
ated
preparation method
Hope Food—construction
of high-quality pork
product storage and
Asset-rel
transport system and 207,920.11 51,979.98 155,940.13
ated
safety assurance
technology integration
and industrialization
Xiajin Farming—subsidy Asset-rel
1,400,000.18 49,999.98 1,350,000.20
for road construction ated
Xiajin Farming—subsidy
Asset-rel
for environmental 11,262,160.57 234,628.26 11,027,532.31
ated
protection
Xiajin Farming—subsidy
Asset-rel
for agricultural machinery 136,860.00 15,206.68 121,653.32
ated
acquisition
Xiajin Breeding—subsidy Asset-rel
49,956.59 45,620.00 14,151.86 81,424.73
for agricultural machinery ated
Xiantao
Feed—governmetn Income-r
66,055.56 51,164.87 14,890.69
subsidy for elated
pandemic-related interest
Xiangyang New
Asset-rel
Hope—preferential land 3,199,689.20 34,591.20 3,165,098.00
ated
policy
Xiaoxian Swine Asset-rel
79,166.75 4,999.98 74,166.77
Breeding—subsidy for ated
383
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
boar station
Xiaoxian Swine
Asset-rel
Breeding—subsidy for 141,458.37 33,949.98 107,508.39
ated
introduction of varieties
Xiaoyi Food—2017-12-1 Asset-rel
1,899,999.98 1,899,999.98
testing lab project ated
Xiaoyi Food—2017-9-27
Asset-rel
base construction project 766,665.72 766,665.72
ated
Xiaoyi Food
Xiaoyi Food—loan Income-r
335,887.50 335,887.50 0.00
interest subsidy elated
Xiaoyi Food—Expansion
of 60000t/a chicken Asset-rel
2,320,001.00 2,320,001.00
production line and base ated
construction
Xindongwan
Asset-rel
Xinliu-reward in lieu of 3,990,000.00 332,499.00 3,657,501.00
ated
government subsidy
Xinguofu Co.,
Asset-rel
Ltd-subsidy for fixed 896,050.17 29,908.98 866,141.19
ated
assets
New Hope
Farming—counterpart Income-r
144,000.00 144,000.00
funding from Xinjin Elite elated
program
New Hope
Income-r
Farming—Chengdu 168,264.46 168,264.46
elated
Talented Drifters Program
Yanting Xinhao--Subsidy
Asset-rel
for 2000 m3 clean water 164,993.00 10,002.00 154,991.00
ated
reservoir
Yanting Xinhao-industrial Income-r
50,000.00 4,166.67 45,833.33
development fund elated
Yanting Xinhao--Subsidy
Asset-rel
for large-sized biogas 1,337,500.00 75,000.00 1,262,500.00
ated
engineering project
Yanting Xinhao--Subsidy
for manure treatment and Asset-rel
1,038,828.00 61,002.00 977,826.00
recycling project of ated
12000/a breeding pig farm
384
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
in Jianhe Town
Yanting Xinhao-fertile Asset-rel
800,000.00 200,000.01 599,999.99
sow subsidy ated
Yanting
Xinhao-municipal-level Asset-rel
2,000,000.00 83,333.35 1,916,666.65
agricultural industry ated
development fund subsidy
Yanshi Liuhe—fiscal
Income-r
interest subsidy for 129,900.00 129,900.00 0.00
elated
anti-epidemic loans
Yanshi Liuhe—subsdiy Asset-rel
2,025,100.35 26,299.98 1,998,800.37
for investment promotion ated
Yangling Besun- 2014
funding for
provincial-level Asset-rel
2,475,000.00 82,500.00 2,392,500.00
industrialization project of ated
integrated agricultural
development
Yangling Besun- 2014
Provincial modern Asset-rel
4,041,666.82 124,999.98 3,916,666.84
agricultural park special ated
funding project
Yangling Besun-
Industrialization project of Asset-rel
2,800,000.00 2,800,000.00
safe and pollution-free ated
deep processing of pork
Yangling Besun-Project of
safe and pollution-free Asset-rel
1,000,000.00 1,000,000.00
pork deep processing ated
plant
Yangling Besun-- Project
of expansion of standard, Asset-rel
2,000,000.00 2,000,000.00
large-sized commodity pig ated
fattening base
Yangling Besun-- Project
of harmless treatment Asset-rel
4,000,000.00 4,000,000.00
system for dead or sick ated
pigs
Yangling Besun-- Animal
Asset-rel
disease control center 1,500,000.00 1,500,000.00
ated
construction project
385
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Yangling Besun- Industry
support funding for
demonstration areas for Asset-rel
4,000,000.00 4,000,000.00
national service sector ated
development guidance
funding
Yangling Besun-- Project
of green pork deep
Asset-rel
processing and meat 10,000,000.00 10,000,000.00
ated
product safety testing
center
Yangling
Besun--Productive
subsidy for 20000 t/a Asset-rel
1,615,000.06 94,999.98 1,520,000.08
bagged organic fertilizer ated
and 10000t/a liquid
fertilizer plant project
Yangling Besun- Branded
Asset-rel
meat sales network 240,000.00 30,000.00 210,000.00
ated
construction project
Yangling Besun-- Project
of live pig quality
traceability across
Asset-rel
industry chain and 1,709,600.00 124,800.00 1,584,800.00
ated
epidemic disease
prevention and control
system construction
Yangling Besun-- Project Asset-rel
250,000.00 250,000.00
of demonstrative pig farm ated
Yangling Besun-- Project
of comprehensive
Asset-rel
utilization of pig farm 6,999,100.00 250,200.00 6,748,900.00
ated
wastes and clean
production
Yangling Besun-10,000 t/a Asset-rel
2,000,000.00 2,000,000.00
cold storage project ated
Yangling Besun-- Project
of reconstruction and
expansion of 5000t/a safe Asset-rel
3,375,000.00 3,375,000.00
and pollution-free pork ated
deep processing plant in
Yangling Demonstration
386
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Area
Yangling Besun-- Subsidy
for the demonstration
Asset-rel
project of piglet nursing 50,000.16 4,999.98 45,000.18
ated
technology
industrialization
Yangling Besun--
Asset-rel
Breeding boar station 400,020.00 49,998.00 350,022.00
ated
construction project
Yishui
Refrigeration—subsidy
Asset-rel
for clean heating project 1,073,000.00 55,500.00 1,017,500.00
ated
using multi-energy
complementation.
Yishui
Refrigeration—subsidy
Asset-rel
for sewage treatment tank 762,944.00 31,248.00 731,696.00
ated
and sewage treatment
enhancement
Yijun
Asset-rel
Xinliu—infrastructure 2,082,500.00 244,999.98 1,837,500.02
ated
construction funding
Yingtan Xinliu-2020 fifth
batch of subsidies for
Asset-rel
variety introduction of 514,500.00 28,583.34 485,916.66
ated
breeding hogs and fertile
sows
Yucheng Xinliu-reward
Asset-rel
for major pig-producing 70,000.00 70,000.00
ated
counties
Yulin New
Asset-rel
Hope—subsidy for pig 174,999.73 14,583.36 160,416.37
ated
feed production line
Zhaoqing
Xinhao—government Asset-rel
4,290,000.02 500,000.00 109,999.98 4,680,000.04
subsidy for agricultural ated
industry park funding
Zhengzhou Hongyuan
Feed—subsidy for Asset-rel
131,944.69 13,888.86 118,055.83
fementation equipment ated
research funding
387
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Zhengzhou
Asset-rel
Quansheng—government 2,366,666.68 129,166.66 2,237,500.02
ated
subsidy for pig farms
Zhidan Dingxiang—swine
industry development Asset-rel
16,000,000.00 16,000,000.00
guidance and support ated
funding
Zhongyang
Asset-rel
Farming-henhouse 1,980,000.00 82,500.00 1,897,500.00
ated
subsidy
Ziyang Jiahao—scientific
Income-r
and technical training 210,000.00 210,000.00
elated
program
Ziyang Farming--Subsidy
Asset-rel
for shopping basket 228,208.16 18,399.96 209,808.20
ated
program
Ziyang Farming—subsidy
Asset-rel
for pilot projects of 35,492.16 9,999.96 25,492.20
ated
deepening reforms
Ziyang Farming—subsidy
Asset-rel
for major pig-exporting 76,300.00 10,350.00 65,950.00
ated
counties
Zoucheng Liuhe Feed- Asset-rel
2,683,098.60 31,690.14 2,651,408.46
land grant fee rebate ated
Zunhua Feed- boiler Asset-rel
80,000.20 7,999.98 72,000.22
subsidy ated
Total 275,670,133.40 52,457,550.00 15,191,530.83 1,834,669.40 311,101,483.17
The company shall comply with the disclosure requirements set forth in “Shenzhen Stock Exchange’s Industry Information
Disclosure Guidance No. 1---Listed Companies Engaged in Livestock, Poultry and Aquaculture Businesses”.
Other remarks:
35. Share capital
Unit: yuan
Current increase or decrease (+,-)
Provident fund
Beginning balance New shares Bonus Ending balance
converted into Others Subtotal
issued shares
shares
Total shares 4,505,800,981.00 -589,639.00 -589,639.00 4,505,211,342.00
Other remarks:
388
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
On August 6, 2020, the company held the 19th meeting of its 8th board of directors and the 10th meeting of its 8th board of
supervisors, deliberating and passing the “Proposal regarding the First Exercise Period under 2019 Stock Option and Restricted Stock
Incentive Plan/Exercise in Unlocked Period/Satisfaction of Conditions for Lifting of Sales Restrictions”. The share capital of the
company increased by 647,861 shares in the current period due to exercise of stock options.
On January 10, 2021, the 28th meeting of the 8th board of directors of the company deliberated and approved the “Proposal
regarding Cancellation of Part of Stock Options and Repurchase and Cancellation of Part of Restricted Stocks”, canceling a total of
22,500 shares of restricted stocks granted to 2 incentive recipients who failed to meet the appraisal standards; repurchasing and
canceling a total of 1,215,000 shares of restricted stocks already granted to but not yet unlocked by 7 incentive recipients who
separated from the company.
36. Other equity instruments
(1) Basic information about preferred shares, perpetual bonds and other financial instruments issued and
outstanding at the end of period
1) Convertible corporate bonds
With the approval of CSRC through the ‘regulatory permit [2019] No. 1902”, the company publicly issued 40 million convertible
corporate bonds with par value of 100 Yuan each on January 3, 2020, for a total issue amount of 4 billion Yuan. With the consent of
Shenzhen Stock Exchange through the document “Shenzhengshang [2020] No. 60”, the company’s 4 billion Yuan convertible
corporate bonds were listed for trading on SZSE as of February 4, 2020, under the bond abbreviation “Hope Con vertible Bonds” and
bond code “127015”. The start and end dates of the existence of convertible corporate bonds are from January 3, 2020 to Janua ry 2,
2026, and the start and end dates of conversion into shares are from July 9, 2020 to January 2, 2026.
2) Renewable trust loans
Renewable loan 1: On December 25, 2020, Xiamen International Trust Co., Ltd (lender) issued a renewable loan of 800 million Yuan
to the company (borrower) for an initial loan period of 2 years, agreeing that the loan period commences from the date when this
renewable trust loan is actually transferred into the borrower-designated account, which date is the value date. Each year after the
expiration of the initial loan period is an extended loan period, and the borrower, one month before the expiration of each loan period,
has the option to extend the loan period by one year or to repay to the lender the balance of all trust loan principal and all payable
interests, derivative yields, penalty interest and other fees payable but not yet paid upon the expiration of each loan period. The loan
interest rate comprises initial interest rate and reset interest rate, the former of which is 6.3% and the latter of which is 300 basis
points (3%) above the annual interest rate applicable as of the expiry date of the previous loan period, with the reset loan interest rate
subject to a maximum of 10.5%.
Renewable loan 2: On December 28, 2020, Lujiazui International Trust Co., Ltd (lender) issued a perpetual loan of RMB 1.0 billion
Yuan to the company (borrower), for an initial loan period of 18 months and an indefinite loan period, agreeing that the loan period
commences from the date when this perpetual loan is actually transferred into the borrower-designated account, which date is the
value date. Each 18 months after the expiration of the initial loan period is an extended loan period, and the borrower, on the
corresponding date of 18 months after expiration of each loan period and any day thereafter, has the right to redeem the entire loan
proceeds of the tranche from the lender at the balance of such loan principal (balance of investment principal=investment principal
–investment principal redeemed by the borrower (if any)) plus interest payable (including current interest and all interest and penalty
interest subject to deferred payment) and any and all other amounts payable but not yet paid. The loan interest rate comprise s initial
interest rate and reset interest rate, the former of which is 6.5%, and the interest rate is reset on the expiry date of each loan period,
with the reset investment interest rate calculated at the higher of the following two: ①Loan interest rate =initial loan interest rate +
【300bp】 ② investment interest rate = base rate at the interest rate resetting date + initial interest spread + 300bp】（initial interest
spread =initial investment interest rate – base rate at the value date）.
Renewable loan 3: On May 12, 2021 and June 9, 2021, Zhongyuan Trust Co., Ltd (lender) issues a renewable loan of 500 million
389
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Yuan to the company (borrower) for an initial loan period of 1 year, agreeing that the loan period commences from the date when this
perpetual loan is actually transferred into the borrower-designated account, which date is the value date. Each year after the
expiration of the initial loan period is an extended loan period, and the borrower, one month before the expiration of each loan period,
has the option to extend the loan period by one year or to repay to the lender the balance of all trust loan principal and all payable
interests and derivative yields, upon the expiration of each loan period. Within the initial loan period, the loan interest r ate is 6.3%,
and after the expiration of the initial loan period, the annual loan interest rate is increased by 200 basis points (2.00) every 1 year, and
by analogy, subject to the maximum loan interest rate of 9.0%.
Renewable loan 4: On June 30, 2021, Xiamen International Trust Co., Ltd (lender) issued a renewable loan of 260 million Yuan to
the company (borrower) for an initial loan period of 1 year, agreeing that the loan period commences from the date when this
renewable trust loan is actually transferred into the borrower-designated account, which date is the value date. Each year after the
expiration of the initial loan period is an extended loan period, and the borrower, one month before the expiration of each loan period,
has the option to extend the loan period by one year or to repay to the lender the balance of all trust loan principal and all payable
interests, derivative yields, penalty interest and other fees payable but not yet paid upon the expiration of each loan period. The loan
interest rate comprises initial interest rate and reset interest rate, the former of which is 6.6313% and the latter of which is 300 basis
points (3%) above the annual interest rate applicable as of the expiry date of the previous loan period, with the reset loan interest rate
subject to a maximum of 9.85%.
3) Renewable corporate bonds
With the approval of CSRC through the ‘regulatory permit [2020] No. 977”, the company (issuer) publicly issued 1.0 billion Yuan
renewable corporate bonds (phase 1) to professional investors on May 28, 2021 for a issue price of 100 Yuan/piece. These bonds
were listed for trading on the centralized bidding system and the integrated agreement trading platform of Shenzhen Stock Exchange
bilaterally on June 8, 2021 under the bond abbreviation “21 Hope Y1” and bond code “149492”. The basic term is 1 year, and at the
end of the agreed basic term and the end of each renewable period, the issuer has the right to exercise the renewal option to extend
the agreed basic term by 1 period; the bonds will be honored in full upon expiration if the issuer fails to exercise the rene wal option.
This phase of bonds was issued in the form of fixed interest rate, accrues interest by year without accrual of compound interest, and
the nominal interest rate of the first period is 5.50%, which will be reset every period thereafter. The nominal interest ra tes of
subsequent periods are adjusted to be the current base rate plus initial interest spread plus 300 basis points, while the initial interest
spread is the nominal interest rate of the first period minus the initial base rate.
New Hope Finance Co., Ltd, an affiliate of the company, participated in subscription for this phase of bonds and was finally allotted
RMB 160 million Yuan.
(2) Statement of changes to preferred shares, perpetual bonds and other financial instruments issued and
outstanding at the end of period
Unit: Yuan
Beginning Current increase Current decrease Ending
Financial instruments
Book
issued and outstanding Amount Book value Amount Book value Amount Amount Book value
value
Convertible corporate
9,502,384 191,904,960.44 2,182 43,924.44 9,500,202 191,861,036.00
bonds
Renewable loans 1,800,000,000.00 760,000,000.00 2,560,000,000.00
Renewable corporate
999,200,000.00 999,200,000.00
bonds
390
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Total 9,502,384 1,991,904,960.44 1,759,200,000.00 2,182 43,924.44 9,500,202 3,751,061,036.00
Remarks on the current increase or decrease in other equity instruments, causes of changes and basis of related accounting treatment:
Other remarks:
37. Capital reserve
Unit: Yuan
Item Beginning balance Current increase Current decrease Ending balance
Capital premium (share capital premium) 8,110,133,908.95 13,173,381.47 8,676,900.00 8,114,630,390.42
Other capital reserves 1,640,774,715.69 3,606,155.39 2,760,267.03 1,641,620,604.05
Wherein: changes in other equities in
1,631,546,791.19 2,760,267.03 1,628,786,524.16
investees
Provision for donated non-cash assets
2,544,124.59 2,544,124.59
received
Others 6,683,799.91 3,606,155.39 10,289,955.30
Total 9,750,908,624.64 16,779,536.86 11,437,167.03 9,756,250,994.47
Other remarks, including remarks on current increase or decrease and cause of change:
(1) Of the current capital premium (share capital premium) increase, 10,022,409.67 Yuan are capital reserve increased by restricted
stocks unlocked by incentive recipients and exercise of stock options thereby after exercise in the e xercise period/unlocked
period/satisfaction of conditions for unlocking under the stock option and restricted stock incentive plan; 3,115,921.97 Yuan are the
effects of minority holding changes in this year; 35,049.83 Yuan were capital reserve increased by conversion of bonds into shares;
(2) The decrease in the current capital premium (share capital premium) was due to canceling restricted stocks granted to 2 incentive
recipients who failed to meet the appraisal standards and repurchasing and canceling restricted stocks already granted to but not yet
unlocked by 7 incentive recipients who separated from the company according to the “Proposal regarding Cancellation of Part of
Stock Options and Repurchase and Cancellation of Part of Restricted Stocks” deliberated and approved by the 28th meeting of the
8th board of directors of the company on January 10, 2021.
(3) The current increase in “others” of other capital reserves was capital reserve from share -based payments charged to ownership
interest in the equity incentive of the company; “change in other interests of investees” is the share of the company in the capital
reserve change of such companies as Xinzhi Huide Mechanical Technology Co., Ltd as calculated by the company according to
shareholding ratio, which was accounted for under the equity method.
38. Treasury shares
Unit: yuan
Item Beginning balance Current increase Current decrease Ending balance
Treasury
shares—purchase price 370,970,103.39 834,549,312.60 185,816.33 1,205,333,599.66
for share repurchase
Total 370,970,103.39 834,549,312.60 185,816.33 1,205,333,599.66
Other remarks, including remarks on current increase or decrease and cause of change:
391
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
(1) The current increase in treasury shares is repurchase of a total of 33,851,598 shares according to the “Scheme regarding
Repurchase of Part of Public Shares” passed at the 22nd meeting of the 8th board of directors of the company and the “Scheme
regarding Repurchase of Part of Public Shares” passed at the 29th meeting of the 8th board of directors of the company, resulting in a
payment of total purchase price of 834,549,312.60 Yuan.
(2) The current decrease in treasury shares is reduction of a total of 11,013 treasury shares due to conversion of convertible bonds
into shares in this period due to the convertible corporate bonds issued this time that entered the conversion period on July 9, 2020
according to the “Offering Circular of New Hope Liuhe Co., Ltd for Public Issue of A-share Convertible Corporate Bonds”.
39. Other comprehensive income
Unit: Yuan
Current amount incurred
Minus:
Minus:
previously
previously
charged to After-tax
charged to Minus: After-tax
other amount
Beginning Current amount other income amount
Item comprehensiv attributable Ending balance
balance incurred before comprehensiv tax attributable to
e income and to minority
income tax e income and expens parent
currently shareholder
currently e company
transferred to s
transferred to
retained
profit and loss
earnings
I. Other
comprehensiv
e income that
can not be
2,031,431.25 41,759.00 31,319.25 10,439.75 2,062,750.50
subsequently
reclassified
into profit and
loss
Other
comprehensiv
e income that
cannot be
2,031,431.25 41,759.00 31,319.25 10,439.75 2,062,750.50
transferred to
profit and loss
under the
equity method
II. Other
comprehensiv
-345,923,252.1 -100,225,925.7 -106,743,494.0 6,517,568.3 -452,666,746.1
e income that
2 3 4 1 6
will
subsequently
392
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
be reclassified
into profit and
loss.
Wherein:
other
comprehensiv
e income that
6,597,922.0
can be -60,731,788.20 26,391,688.00 19,793,766.00 -40,938,022.20
0
transferred to
profit and loss
under the
equity method
Foreign
currency -285,191,463.9 -126,617,613.7 -126,537,260.0 -411,728,723.9
-80,353.69
statement 2 3 4 6
translation
difference
Total other
-343,891,820.8 -100,184,166.7 -106,712,174.7 6,528,008.0 -450,603,995.6
comprehensiv
7 3 9 6 6
e income
Other remarks, including on the adjustments to the initially recognized amounts of the effective portion of cash flow hedging profit
and loss transferred to the hedged items
40. Surplus reserve
Unit: Yuan
Item Beginning balance Current increase Current decrease Ending balance
Statutory surplus reserve 3,093,735,140.45 219,648.76 3,093,515,491.69
Total 3,093,735,140.45 219,648.76 3,093,515,491.69
Remarks on surplus reserve, including on the current increase or decrease and causes of change:
Note: The decrease in surplus reserve is the share of the company reduced along with subsidiaries at the time of disposal of
subsidiaries.
41. Undistributed profits
Unit: Yuan
Item Current amount Prior-period amount
Undistributed profit in prior period before
21,218,846,353.41 17,590,186,212.30
adjustment
Beginning undistributed profits after adjustment 21,218,846,353.41 17,590,186,212.30
393
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Plus: net profits attributable to parent company's
-3,415,066,136.23 3,163,865,460.00
owner in current period
Minus: legal surplus reserve accrued -451,609.79
Dividends payable on ordinary shares 621,563,432.85
Perpetual bond interest payable 58,773,366.67
Undistributed profits at the end of period 17,745,006,850.51 20,132,939,849.24
Breakdown of adjustments to beginning undistributed profits:
1) The effect of retrospective adjustments due to the Enterprise Accounting Standards and its new related provisions on the beginning
undistributed profits was 0.00 Yuan.
2) The effect of changes to accounting policies on beginning undistr ibuted profits was 0.00 Yuan.
3) The effect of corrections of significant accounting errors on the beginning undistributed profits was 0.00 Yuan.
4) The effect of change to scope of consolidation due to common control on the beginning undistributed profits was 0.00 Yuan.
5) The total effect of other adjustments on the beginning undistributed profits was 0.00 Yuan.
42. Business revenue and operating costs
Unit: Yuan
Current amount incurred Prior-period amount incurred
Item
Revenue Cost Revenue Cost
Main business 61,239,404,392.13 58,965,357,708.57 44,534,971,060.74 38,626,816,510.65
Other businesses 279,170,168.54 215,655,019.72 161,069,303.34 256,410,207.10
Total 61,518,574,560.67 59,181,012,728.29 44,696,040,364.08 38,883,226,717.75
Information related to performance obligations:
None
Information related to transaction prices allocated to remaining performance obligations:
The amount of revenue corresponding to performance obligations already contracted but not yet performed or completed at the e nd
of this reporting period is 2,248,863,709.87 Yuan, of which 2,248,863,709.87 Yuan is expected to be recognized in 2021.
Other remarks
43. Taxes and surcharges
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
Urban maintenance and construction tax 8,535,768.44 4,589,853.60
Educational surcharge 4,051,367.72 2,384,144.90
Resource tax 1,027,469.52 2,624,897.67
Real estate tax 20,944,406.46 19,631,432.85
Land use tax 22,209,412.71 21,640,280.02
394
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Vehicle and vessel use tax 282,296.11 360,383.75
Stamp duty 36,435,765.90 22,200,027.82
Local educational surcharge 2,729,132.41 1,576,957.26
Environmental protection tax 1,306,191.41 1,114,953.11
Water conservancy fund 2,274,239.76 1,661,550.25
Others 3,345,873.66 -155,546.75
Total 103,141,924.10 77,628,934.48
Other remarks:
44. Selling expenses
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
Payroll 697,011,070.71 523,754,315.04
Office costs 2,274,379.32 2,158,340.04
Travel expenses 55,079,949.77 35,248,716.79
Post and telecommunication expenses 3,013,135.11 2,218,861.01
Machine and materials consumption 2,516,268.57 2,390,863.82
Amortization of low-value consumables 93,874.46 75,243.65
Depreciation expenses 3,021,954.21 3,640,627.03
Right-of-use asset depreciation cost 197,779.63
Rental expenses 6,366,471.44 3,923,292.42
Labor protection expenses 538,283.32 1,062,626.91
Transportation expenses 8,807,452.39 8,098,548.88
Conference expenses 4,774,560.83 2,593,251.89
Water and electricity expenses 181,591.52 204,100.14
Inspection and quarantine expenses 1,821,656.09 888,646.93
Advertising expenses 3,916,108.85 1,067,627.38
Publicity expenses 35,096,337.54 14,165,370.13
After-sales service expenses 6,179,779.75 6,011,306.23
Handling expenses 18,872,656.74 7,047,662.41
Warehousing expenses 11,309,735.77 9,260,052.84
Market management expenses 22,364,805.97 20,539,550.19
Return loss expenses 1,858,296.11 215,839.63
Amortization of revolving materials 869,658.60 726,621.05
395
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Total 886,165,806.70 645,291,464.41
Other remarks:
45. Management expenses
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
Payroll 1,040,754,067.13 871,138,774.60
Office costs 31,209,610.31 31,463,045.80
Travel expenses 56,580,573.62 47,733,888.82
Post and telecommunication expenses 13,536,814.59 11,164,915.58
Machine and materials consumption 46,125,058.35 35,176,886.10
Amortization of low-value consumables 7,197,912.42 12,565,165.51
Depreciation expenses 166,134,796.45 104,226,138.35
Right-of-use asset depreciation cost 53,258,842.72
Rental expenses 72,122,853.78 82,985,034.02
Labor protection expenses 9,074,376.42 14,359,588.02
Repair costs 47,563,264.23 34,774,438.44
Property insurance costs 61,811,343.01 29,577,699.85
Transportation expenses 35,981,240.07 22,768,088.54
Membership dues and conference expenses 9,457,953.56 9,629,313.18
Water and electricity expenses 33,811,388.45 24,655,415.03
Business entertainment expenses 45,241,434.13 29,377,001.55
Intermediary fees 137,859,418.66 107,069,032.35
Inventory loss, destruction and scrapping 50,406,918.32 11,925,673.81
Environmental protection fee 25,582,280.29 12,599,441.70
Trademark royalties 3,378,108.82 3,379,247.64
Amortization of intangible assets 42,289,664.04 33,088,733.43
Amortization of long-term unamortized
42,545,998.10 43,217,478.37
expenses
Inspection and test fees 15,978,255.79 12,584,358.77
Startup costs 2,102,671.61 4,572,920.22
Taxes and charges 5,028,941.76 2,731,425.85
Expenses of board of directors 443,109.53 416,329.04
Heating expenses 4,576,417.44 3,841,497.40
396
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Mutual fund for breeding 4,559,116.50 8,524,076.26
Equity incentive expenses 2,731,935.90 14,310,311.98
Others 3,897,576.81 859,320.12
Total 2,071,241,942.81 1,620,715,240.33
Other remarks:
46. R&D expenses
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
Payroll 86,914,561.51 59,513,017.52
Office costs 466,581.67 211,064.48
Travel expenses 5,112,870.78 2,664,144.97
Post and telecommunication expenses 218,105.08 183,055.79
Direct materials 34,141,977.43 20,791,770.32
Fuel and power 731,656.66 324,506.94
Costs of development and manufacture of
67,227.07 46,028.37
tools and molds
Pilot plant test costs 51,334.75 242,770.49
Onsite test costs 24,793.24 26,922.25
Debugging and maintenance costs 340,477.46 478,688.01
Inspection and test fees 2,383,257.27 2,681,995.54
Labor protection expenses 46,672.69 18,363.98
Transportation expenses 111,285.73 119,727.01
Labor costs 417,082.85 406,099.83
Training costs 13,973.00 28,790.00
Design fee 355,250.82 158,655.27
Expert consulting fee 484,831.45 3,453,708.21
Cooperative development costs 587,352.61 119,331.29
Demonstration, review and acceptance fees 0.00 26,400.00
IP affairs expenses 262,996.08 822,303.08
Meeting expenses 600,960.19 500,668.63
Depreciation expenses 3,969,114.14 2,544,939.67
Right-of-use asset depreciation cost 619,955.89
Rental expenses 2,351,286.59 3,416,179.76
397
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Amortization of intangible assets 1,613,229.11 1,495,415.73
Equity incentive expenses 874,219.49 2,182,353.83
Intermediary fees 223,444.15 106,106.23
Amortization of long-term unamortized
3,923,777.16 1,205,479.38
expenses
Others 168,525.02 120,684.06
Total 147,076,799.89 103,889,170.64
Other remarks:
47. Financial expenses
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
Interest expenditure 807,823,061.58 507,683,759.99
Minus: interest revenue 70,004,378.51 87,768,232.59
Exchange loss 163,575,296.35 239,819,275.58
Minus: exchange income 159,037,479.82 249,627,755.38
Others 11,207,543.37 21,248,548.76
Total 753,564,042.97 431,355,596.36
Other remarks:
48. Other income
Unit: Yuan
Source of other income Current amount incurred Prior-period amount incurred
Amortization of deferred income-assets 10,924,081.38 11,101,329.16
Amortization of deferred income-income 4,267,449.45 2,587,837.05
Rebate of handling fee on withheld
7,822,903.89 677,683.43
personal income tax
Government subsidy related to daily
84,218,074.40 51,697,190.37
business activities
Total 107,232,509.12 66,064,040.01
49. Investment income
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
Income on long-term equity investments 1,176,426,216.33 1,247,082,435.86
398
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
accounted for under the equity method
Investment income from disposal of long-term
6,714,394.26 1,247,332.59
equity investments
Investment income on held-for-trading financial
-1,075.48 -1,118.62
assets during the holding period
Investment income from disposal of
-6,543,468.76 -7,472,161.95
held-for-trading financial assets
Dividend revenue from other equity instrument
350,000.00
investments during the holding period
Total 1,176,596,066.35 1,241,206,487.88
Other remarks:
50. Income from change in fair value
Unit: Yuan
Source of income from change in fair value Current amount incurred Prior-period amount incurred
Held-for-trading financial assets -5,103,677.64 -350,592.33
Wherein: income from change in fair value of
-5,103,677.64 -350,592.33
derivative financial instruments
Held-for-trading financial liabilities -5,983,113.47 -3,761,357.30
Total -11,086,791.11 -4,111,949.63
Other remarks:
The income from change in fair value is the difference between ending market prices and costs of futures, foreign exchange
forwards, option contracts and interest rate swaps purchased by the company.
51. Credit impairment loss
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
Bad debt loss from other receivables -9,221,669.04 6,419,576.36
Bad debt loss from accounts receivable -67,886,890.34 -53,720,249.29
Total -77,108,559.38 -47,300,672.93
Other remarks:
52. Asset impairment loss
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
II. Loss on inventory revaluation and -1,002,396,508.13 -2,543,335.51
399
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
impairment loss of contract performance cost
VII. Impairment loss of construction in
-12,215.10
progress
Total -1,002,396,508.13 -2,555,550.61
Other remarks:
53. Income from asset disposal
Unit: Yuan
Source of income from asset disposal Current amount incurred Prior-period amount incurred
Income from disposal of fixed assets 12,795,409.17 7,936,565.07
Income from disposal of productive
10,101,371.76 -82,291,393.32
biological assets
Income from disposal of intangible assets 0.00 9,207,680.10
Income on disposal of right-of-use assets 39,947.05 0.00
Total 22,936,727.98 -65,147,148.15
54. Non-business revenue
Unit: Yuan
Amount charged to current
Item Current amount incurred Prior-period amount incurred
non-recurring profit and loss
Gains from exchange of
0.00 0.00 0.00
nonmonetary assets
Donations received 0.00 0.00 0.00
Government subsidy 0.00 0.00 0.00
Penalty revenue 8,199,548.36 8,084,332.32 8,199,548.36
Gains on inventory taking 659,840.28 908,166.54 659,840.28
Payables that cannot be paid 20,555,500.36 13,269,044.59 20,555,500.36
Revenue from insurance
23,694,811.90 9,055,923.24 23,694,811.90
indemnities
Effect of business combination
320,326.09 0.00 320,326.09
not under common control
Others 61,513.64 75,522.30 61,513.64
Total 53,491,540.63 31,392,988.99 53,491,540.63
The company shall comply with the disclosure requirements set forth in “Shenzhen Stock Exchange’s Industry Information
Disclosure Guidance No. 1---Listed Companies Engaged in Livestock, Poultry and Aquaculture Businesses”.
Other remarks:
400
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
55. Non-business expenditure
Unit: Yuan
Prior-period amount Amount charged to current
Item Current amount incurred
incurred non-recurring profit and loss
External donations 5,765,302.83 18,861,738.86 5,765,302.83
Total loss from scrapping and
875,143,928.70 31,097,017.92 875,143,928.70
destruction of noncurrent assets
Wherein: loss from scrapping and
7,119,901.12 2,427,098.57 7,119,901.12
destruction of fixed assets
Loss from scrapping and
destruction of productive biological 863,510,623.10 28,669,919.35 863,510,623.10
assets
Loss on disposal of intangible
assets
Loss on destruction and
4,513,404.48 4,513,404.48
scrapping of construction in progress
Penalty expenses 7,295,729.75 870,433.88 7,295,729.75
Indemnities/liquidated damages 14,054,891.39 6,509,111.31 14,054,891.39
Extraordinary losses 426,691,350.36 85,165,464.17 426,691,350.36
Loss on inventory taking 1,764,255.66 915,162.39 1,764,255.66
Others 25,502.37 75,234.34 25,502.37
Total 1,330,740,961.06 143,494,162.87 1,330,740,961.06
Other remarks:
56. Income tax expenses
(1) Statement of income tax expenses
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
Current income tax expense 242,897,979.28 160,161,926.86
Deferred income tax expense 12,915,456.80 11,107,612.09
Total 255,813,436.08 171,269,538.95
(2) Process of adjustment to accounting profits and income tax expenses
Unit: Yuan
Item Current amount incurred
401
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Total profits -2,699,588,580.47
Income tax expenses calculated at statutory/applicable tax rates -674,897,145.12
Effect of subsidiaries subject to different tax rates -89,395,259.41
Effect of adjustment to income tax in previous periods 5,982,275.46
Effect of nontaxable income 1,068,846,718.61
Effect of non-deductible costs, expenses and losses 59,683,401.07
Effect of use of deductible losses with respect to which deferred income tax
-37,054,638.57
assets are not previously recognized
Effect of deductible temporary difference or deductible loss of deferred
113,944,438.48
income tax assets not recognized in the current period
Effect of profit and loss of joint ventures and affiliates accounted for under
-183,114,825.36
the equity method
Effect of additional R&D cost deduction -10,100,514.47
Effect of tax rate change on beginning balance of deferred income tax 1,918,985.39
Income tax expense 255,813,436.08
Other remarks
57. Other comprehensive income
As detailed in Note VII. 39 other comprehensive income.
58. Items of cash flow statement
(1) Other cash received in connection with operating activities
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
Various temporary receipts received 392,988,872.62 256,896,619.60
Various subsidies received 144,498,528.29 69,050,892.30
Interest revenue from bank deposits 51,851,415.89 113,749,480.76
Penalty revenue 8,199,548.36 8,084,332.32
Others 20,359,885.82 277,993,908.37
Total 617,898,250.98 725,775,233.35
Remarks on other cash received in connection with operating activities:
(2) Other cash paid in connection with operating activities
Unit: Yuan
402
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Item Current amount incurred Prior-period amount incurred
Various suspense debits paid 688,212,593.82 312,320,147.83
Bank commission, etc. 9,207,543.37 16,401,870.13
Selling expenses 184,971,469.08 116,890,557.50
Management expenses 660,556,643.42 517,166,435.38
R&D expenses 49,161,942.59 39,130,318.34
Penalty expenses 7,295,729.75 870,433.88
Others 19,845,696.59 404,371,308.57
Total 1,619,251,618.62 1,407,151,071.63
Remarks on other cash paid in connection with operating activities:
(3) Other cash received in connection with investing activities
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
Income on derivatives investments 10,983,654.00 3,315,588.35
Total 10,983,654.00 3,315,588.35
Remarks on other cash received in connection w ith investing activities:
(4) Other cash paid in connection with investing activities
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
Prepaid investments 20,000,000.00 8,500,000.00
Loss on derivatives investments 40,645,193.13 16,069,476.86
Payment of futures margins 8,330,400.00 18,528,269.06
Total 68,975,593.13 43,097,745.92
Remarks on other cash paid in connection with investing activities:
(5) Other cash received in connection with financing activities
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
Disposal of part of equities in subsidiaries 2,450,000.00
Cash received from issue of bonds 1,997,600,000.00 5,286,000,000.00
Cash received from issuance of notes 2,996,700,000.00
Total 1,997,600,000.00 8,285,150,000.00
403
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Remarks on other cash received in connection with financing activities:
(6) Other cash paid in connection with financing activities
Unit: Yuan
Item Current amount incurred Prior-period amount incurred
Financing lease amounts paid 3,872,215.28
Cash paid for repurchase of shares of the
834,549,312.60
company
Due diligence and guarantee fees for
2,000,000.00 4,567,368.63
borrowings, etc.
Commission on cash dividends 279,310.00
Cash distributed to minority shareholders
7,569.93
due to comany deregistration
Cash paid for acquisition of minority
299,837,798.61 9,341,362.92
equities
Repayment of borrowings through New
600,000,000.00
Hope Group
Cash distributed to minority shareholders
160,924,569.38
due to deregistration of companies
Cash paid for repayment of principal of
235,202,552.02
lease liabilities
Cash paid for repayment of interest on
16,683,939.86
lease liabilities
Total 2,149,205,742.40 18,060,256.83
Remarks on other cash paid in connection with financing activities:
59. Additional information about cash flow statement
(1) Additional information about cash flow statement
Unit: Yuan
Additional information Current amount Prior amount
1. Net profits adjusted to cash flows from operating activities: -- --
Net profits -2,955,402,016.55 3,828,903,312.50
Plus: asset impairment provision 1,079,505,067.51 49,856,223.54
Depreciation of fixed assets, depletion of oil & gas assets and depreciation of
2,530,183,281.49 998,633,286.15
productive biological assets
Depreciation of right-of-use assets 276,988,624.83
404
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Amortization of intangible assets 49,322,931.43 39,665,232.40
Amortization of long-term unamortized expenses 121,460,154.30 101,293,380.76
Loss from disposal of fixed assets, intangible assets and other long-term
-22,936,727.98 65,147,148.15
assets (income to be denoted by “－”)
Loss from retirement of fixed assets (income to be denoted by “－”) 875,143,928.70 31,097,017.92
Loss from changes in fair value (income to be denoted by “－”) 11,086,791.11 4,111,949.63
Financial expenses (income to be denoted by “－”) 814,360,878.11 502,721,958.82
Loss on investment (income to be denoted by “－”) -1,176,596,066.35 -1,241,206,487.88
Decrease in deferred income tax assets (increase to be denoted by “－”) 18,371,883.20 17,078,459.09
Increase in deferred income tax liabilities (decrease to be denoted by “－”) -816,771.93 -1,067,946.32
Decrease in inventory (increase to be denoted by “－”) -5,007,155,220.51 -5,733,741,971.33
Decrease in operating receivables (increase to be denoted by “－”) -2,448,548,003.94 -905,334,337.64
Increase in operating payables (decrease to be denoted by “－”) 1,238,424,580.84 2,901,436,105.79
Others
Net cash flows from operating activities -4,596,606,685.74 658,593,331.58
2. Significant investment and financing activities involving no cash receipt and
-- --
expenditure:
Debts converted to capital
Convertible corporate bonds due within one year
Fixed assets under financing lease
3. Net change in cash and cash equivalents： -- --
Ending balance of cash 11,348,831,051.22 10,015,558,784.22
Minus: beginning balance of cash 8,509,218,898.56 5,692,332,240.91
Plus: ending balance of cash equivalents
Minus: beginning balance of cash equivalents
Net increase in cash and cash equivalents 2,839,612,152.66 4,323,226,543.31
(2) Net cash paid for acquisition of subsidiaries in the current period
Unit: Yuan
Amount
Cash or cash equivalents paid in the current period for business
484,851,522.30
combinations occurred in the current period
Wherein: --
Zhangjiajie Xinruixing Feed Co., Ltd 36,252,867.39
Hezhou Jiuding Farming Co., Ltd 19,740,478.71
405
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Huzhou Haihuang Biotechnology Co., Ltd 169,000,000.00
Puyang New Hope Feed Co., Ltd 22,300,000.00
Jiangsu Suxinyuan Feed Co., Ltd 16,705,456.56
Changxing Heping Huatong Livestock Co., Ltd 63,310,000.00
Changxing Huatong Livestock Co., Ltd 157,542,719.64
Minus: cash and cash equivalents held by subsidiaries at the
84,510,368.74
purchase date
Wherein: --
Zhangjiajie Xinruixing Feed Co., Ltd 32,548,661.39
Hezhou Jiuding Farming Co., Ltd
Huzhou Haihuang Biotechnology Co., Ltd 30,104,444.58
Puyang New Hope Feed Co., Ltd
Jiangsu Suxinyuan Feed Co., Ltd
Changxing Heping Huatong Livestock Co., Ltd 4,450,525.36
Changxing Huatong Livestock Co., Ltd 17,406,737.41
Plus: Cash or cash equivalents paid in the current period for
15,883,000.00
business combinations occurred in the previous periods
Wherein: --
Hangzhou Guanglv Breeding Co., Ltd 5,000,000.00
Yancheng Zhongtai Livestock Co., Ltd 7,750,000.00
Xiangshan Huatong Livestock Co., Ltd 3,133,000.00
Net cash paid for acquisition of subsidiaries 416,224,153.56
Other remarks:
(3) Net cash received from disposal of subsidiaries in the current period
Unit: Yuan
Amount
Cash or cash equivalents received in the current period for disposal
7,146,100.00
of subsidiaries in the current period
Wherein: --
Zibo Xinmu Mechanical Technology Co., Ltd 7,146,100.00
Minus: Cash and cash equivalents held by subsidiaries at the date of
1,465,606.22
loss of control
Wherein: --
Zibo Xinmu Mechanical Technology Co., Ltd 1,465,606.22
406
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Wherein: --
Net cash received from disposal of subsidiaries 5,680,493.78
Other remarks:
(4) Composition of cash and cash equivalents
Unit: Yuan
Item Ending balance Beginning balance
I. Cash 11,348,831,051.22 8,509,218,898.56
Wherein: cash on hand 14,417,649.58 10,992,215.57
Bank deposits readily available for payment 10,882,297,601.33 7,955,960,859.39
Other cash at bank and on hand readily available for payment 452,115,800.31 542,265,823.60
III. Ending balance of cash and cash equivalents 11,348,831,051.22 8,509,218,898.56
Wherein: cash and cash equivalents of the parent company or subsidiaries inside the
325,969,835.08 290,045,457.64
group restricted from use
Other remarks:
60. Notes to items of the statement of changes in equity
Indicate the names of “other” items of adjustment to the ending balance of the previous year and the amounts of adjustment, etc:
61. Assets with respect to which ownership or right of use is restricted
Unit: Yuan
Item Ending book value Cause of restrictions
Cash at bank and on hand 325,969,835.08 Margin
Notes receivable
Inventories
Used as collaterals for long and short-term
Fixed assets 294,033,430.25
borrowings
Used as collaterals for long and short-term
Intangible assets 50,831,208.80
borrowings
Accounts receivable 11,012,274.60 Used as pledges for short-term borrowings
Used as collaterals for short-term
Consumptive biological assets 150,000,000.00
borrowings
Long-term equity investments 837,091,597.65 Used as pledges for long-term borrowings
Total 1,668,938,346.38 --
Other remarks:
407
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Note 1: The company uses the live pigs of its subsidiary Yangling Besun Agricultural Industry Group Co., Ltd, houses and land of
New Hope Turkey Feed Farming Food Import & Export and Industry Ltd, land and equipment of its Nepalese subsidiary, hous es and
land of Huaian New Hope Feed Co., Ltd, land and houses of Anhui Baixin Feed Co., Ltd, land and houses of Hefei Huameng
Biotechnology Co., Ltd, land and houses of Leting Liuhe Xinmeizi Food Co., Ltd, land and houses of Guanghan Guoxiong Feed Co. ,
Ltd, land and houses of Chengdu Century Investment Co., Ltd, land and houses of Mianyang New Hope Liuhe Farming Technology
Co., Ltd, land and houses of Taizhou New Hope Agriculture Co., Ltd, land and houses of Beijing Kinghey Food Co., Ltd, and lan d
and factory buildings of New Hope Singapore Biotechnology Ltd as collaterals for long and short-term borrowings, for a total of
mortgage loans equivalent to RMB 390.4990 million Yuan.
Note 2: The company uses accounts receivable of its subsidiary Linyi New Hope Liuhe Feed Co., Ltd as pledges for short-term
borrowings, for a total of pledge loans of RMB 9.9110 million Yuan.
Note 3: The company’s subsidiary Tibet Xinhao Technology Co., Ltd provided equity pledge guarantees for New Hope Liuhe Co.,
Ltd to secure 446 million Yuan, 282 million Yuan, 452 million Yuan financing and 583 million Yuan financing from China
Development Bank Sichuan Branch, ADB, Export-Import Bank of China Sichuan Branch and Postal Savings Bank of China
Chengdu Tianfu Sub-branch respectively, using the capital contributions of 100 million Yuan to Kangping New Hope Farming Co.,
Ltd, 100.89 million Yuan to Baiyin New Hope Farming Technology Co., Ltd, 60 million Yuan to Gaomi Xinliu Farming Technology
Co., Ltd, 91 million Yuan to Raoyang Xinhao Farming Co., Ltd, 40 million Yuan to Fuxin Xinhao Farming Co., Ltd, 168 million
Yuan to Huanghua Xinhao Technology Co., Ltd, 168 million Yuan to Xiangzhou Xinhao Farming Co., Ltd, and 60 million Yuan to
Zhucheng Xinliu Farming Technology Co., Ltd as pledges, a nd capital contribution of 77.3041 million Yuan of the company to
Beijing Meihao Meideling Food Co., Ltd as pledges.
62. Foreign-currency monetary items
(1) Foreign-currency monetary items
Unit: Yuan
Ending foreign-curency
Item Exchange rate for conversion Ending converted RMB balance
balance
Cash at bank and on hand -- -- 504,039,814.28
Wherein: USD 8,707,691.10 6.4601 56,252,555.26
Euro
HKD 1,931,012.21 0.8321 1,606,795.26
SGD 811,293.68 4.80270000 3,896,400.15
VND 239,594,687,129.99 0.00027871 66,777,435.25
PHP 109,407,695.83 0.13297872 14,548,895.35
BDT 570,609,527.43 0.07619744 43,478,985.23
LKR 667,314,726.61 0.03209789 21,419,394.69
IDR 181,403,255,936.08 0.00044558 80,829,662.78
Kyat 23,038,541,137.81 0.00400155 92,189,874.29
EGP 128,352,472.51 0.41099228 52,751,875.32
ZAR 3,982,689.38 0.45006526 1,792,470.13
408
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
TRY 2,874,801.87 0.73968327 2,126,442.85
LAK 70,836,776,330.00 0.00067613 47,894,869.58
THB 114,377.48 0.20147480 23,044.18
NPR 196,499,211.62 0.05437738 10,685,112.30
PLN 522.90 1.70091169 889.41
INR 48,763,005.79 0.08697200 4,241,016.14
NGN 223,547,463.85 0.01576442 3,524,096.11
Accounts receivable -- -- 621,267,256.24
Wherein: USD 4,110,953.82 6.4601 26,557,172.77
Euro
HKD 23,971,749.81 0.8321 19,946,893.02
VND 289,716,556,313.01 0.00027871 80,746,901.41
PHP 376,259,583.34 0.13297872 50,034,517.78
BDT 575,094,675.23 0.07619744 43,820,742.01
LKR 214,639,905.61 0.03209789 6,889,488.08
IDR 658,231,924,435.57 0.00044558 293,294,980.89
Kyat 4,705,629,036.25 0.00400155 18,829,809.87
EGP 147,922,296.23 0.41099228 60,794,921.79
ZAR 24,384.42 0.45006526 10,974.58
TRY 4,019,161.71 0.73968327 2,972,906.68
LAK 2,888,040,790.97 0.00067613 1,952,691.02
NPR 187,796,867.37 0.05437738 10,211,901.62
INR 59,827,929.91 0.08697200 5,203,354.72
Other receivables 22,641,225.48
Wherein: USD 10,030.28 6.4601 64,796.61
HKD 883,483.81 0.8321 735,146.88
SGD 4,986.36 4.80270000 23,947.99
VND 20,367,059,847.15 0.00027871 5,676,503.25
PHP 10,503,477.25 0.13297872 1,396,738.96
BDT 13,765,186.99 0.07619744 1,048,872.01
LKR 530,089.98 0.03209789 17,014.77
IDR 5,037,699,313.25 0.00044558 2,244,698.06
Kyat 480,078,824.46 0.00400155 1,921,059.42
EGP 11,394.01 0.41099228 4,682.85
409
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
ZAR 965,467.10 0.45006526 434,523.20
TRY 65,313.52 0.73968327 48,311.32
NPR 99,486.59 0.05437738 5,409.82
INR 7,706.27 0.08697200 670.23
NGN 572,101,613.00 0.01576442 9,018,850.11
Short-term borrowings 1,428,747,346.73
Wherein: USD 169,085,543.80 6.4601 1,092,309,521.52
VND 613,866,760,934.30 0.00027871 171,090,804.94
PHP 722,251,261.48 0.13297872 96,044,048.27
IDR 135,000,000,000.00 0.00044558 60,153,300.00
TRY 3,844,759.12 0.73968327 2,843,904.00
NGN 400,000,000.00 0.01576442 6,305,768.00
Accounts payable 597,648,133.02
Wherein: USD 10,853,809.23 6.4601 70,116,693.02
HKD 2,260,544.92 0.8321 1,880,999.43
SGD 111,456.56 4.80270000 535,292.44
VND 366,367,726,741.06 0.00027871 102,110,349.12
PHP 572,962,210.12 0.13297872 76,191,781.31
BDT 413,610,557.26 0.07619744 31,516,065.62
IDR 566,965,602,607.84 0.00044558 252,628,533.21
Kyat 4,734,619,492.45 0.00400155 18,945,816.63
EGP 62,138,179.82 0.41099228 25,538,312.20
ZAR 885,118.70 0.45006526 398,361.18
TRY 5,590,574.14 0.73968327 4,135,254.16
LAK 1,735,354,325.35 0.00067613 1,173,325.12
NPR 60,607,746.09 0.05437738 3,295,690.44
INR 70,035,509.24 0.08697200 6,091,128.31
NGN 196,044,689.88 0.01576442 3,090,530.83
Other payables 43,071,075.15
Wherein: USD 164,588.26 6.4601 1,063,256.62
HKD 1,386,589.11 0.8321 1,153,780.80
SGD 326,172.72 4.80270000 1,566,509.72
VND 8,266,362,957.91 0.00027871 2,303,918.02
PHP 34,934,540.43 0.13297872 4,645,550.47
410
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
BDT 35,889,469.51 0.07619744 2,734,685.70
LKR 4,210,168.02 0.03209789 135,137.51
IDR 13,726,441,514.43 0.00044558 6,116,227.81
Kyat 1,996,322,862.39 0.00400155 7,988,385.75
EGP 3,431,755.75 0.41099228 1,410,425.12
ZAR 9,974.24 0.45006526 4,489.06
TRY 650,193.31 0.73968327 480,937.11
LAK 291,861,387.60 0.00067613 197,336.24
NPR 4,323,440.74 0.05437738 235,097.38
INR 24,583,091.45 0.08697200 2,138,040.63
NGN 691,259,000.33 0.01576442 10,897,297.21
Long-term borrowings due
18,029,335.80
within one year
Wherein: SGD 3,754,000.00 4.80270000 18,029,335.80
Long-term borrowings -- -- 2,261,035,000.00
Wherein: USD 350,000,000.00 6.4601 2,261,035,000.00
Euro
HKD
Other remarks:
(2) Remarks on overseas operating entities, including disclosure of principal place of business, accounting
currency and selection basis for important overseas operating entities, as well as the reasons for disclosure
of changes to accounting currency, if any.
√ applicable □ not applicable
Name of entity Principal place of Accounting currency Basis for selection of
business accounting currency
New Hope Hanoi Co., Ltd Vietnam VND Local principal currency
New Hope Ho Chi Minh City Co., Ltd Vietnam VND Local principal currency
Binh Dinh New Hope Co., Ltd Vietnam VND Local principal currency
New Hope Dong Thap Producing Feed For Aquaculture Co., Vietnam VND Local principal currency
Ltd
Than Hoa New Hope Livestock Services Co., Ltd Vietnam VND Local principal currency
New Hope Binh Dinh Livestock Co., Ltd Vietnam VND Local principal currency
New Hope Vinh Long Co., Ltd Vietnam VND Local principal currency
New Hope Binh Phuoc Livestock Co., Ltd Vietnam VND Local principal currency
New Hope Vietnam Technological Livestock Services Co., Ltd Vietnam VND Local principal currency
Sichuan New Hope Agriculture (Cambodia)Co., Ltd Cambodia USD Local principal currency
411
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
New Hope Pampanga Agriculture Inc. Phillipines Peso Local principal currency
New Hope Central Luzon Agriculture Inc. Phillipines Peso Local principal currency
New Hope Tarlac Agriculture Inc. Phillipines Peso Local principal currency
New Hope Bulacan Agriculture Inc. Phillipines Peso Local principal currency
New Hope Isabela Agriculture Inc. Phillipines Peso Local principal currency
New Hope Phillipines Animal Healthcare Services Inc. Phillipines Peso Local principal currency
New Hope Davao Agriculture Inc. Phillipines Peso Local principal currency
New Hope Bangladesh Ltd Bangladesh Taka Local principal currency
New Hope Agrotech Bangladesh Ltd Bangladesh Taka Local principal currency
New Hope Farms Bangladesh Ltd Bangladesh Taka Local principal currency
Xinhe International Trade Co., Ltd Bangladesh Taka Local principal currency
New Hope Animal Nutrition Bangladesh Co., Ltd Bangladesh Taka Local principal currency
New Hope Lanka (Pvt) Limited Sri Lanka LKR Local principal currency
PT New Hope Jawa Timur Indonesia IDR Local principal currency
PT New Hope Indonesia Indonesia IDR Local principal currency
PT New Hope Medan Indonesia IDR Local principal currency
PT New Hope Farms Indonesia Indonesia IDR Local principal currency
PT New Hope Food Indonesia Indonesia IDR Local principal currency
PT New Hope Aqua Feed Indonesia Indonesia IDR Local principal currency
PT New Hope Poultry Trade Indonesia Indonesia IDR Local principal currency
PT Corn Drying Indonesia Indonesia IDR Local principal currency
New Hope Singapore Pte. Ltd Singapore USD Local principal currency
New Hope Asia Investment Pte. Ltd Singapore USD Local principal currency
New Hope International Holdings (Pte) Ltd Singapore USD Local principal currency
New Hope Global Investment Pte. Ltd Singapore USD Local principal currency
New Hope Singapore Premix Pte. Ltd Singapore USD Local principal currency
New Hope Singapore Biotechnology Pte. Ltd Singapore SGD Local principal currency
NHCS Investment Pte. Ltd Singapore SGD Local principal currency
Myanmar New Hope Farms Co., Ltd Myanmar MMK Local principal currency
Myanmar New Hope Agro-Technology Co., Ltd Myanmar MMK Local principal currency
Xinhe Myanmar Agro-technology Co., Ltd Myanmar MMK Local principal currency
New Hope Mandalay Co., Ltd Myanmar MMK Local principal currency
New Hope Egypt Ltd Egypt EGP Local principal currency
New Hope Agriculture () Ltd Egypt EGP Local principal currency
New Hope Alexander Ltd Egypt EGP Local principal currency
New Hope Egypt Aquatic Technology Ltd Egypt EGP Local principal currency
New Hope Egypt Poultry Ltd Egypt EGP Local principal currency
New Hope South Africa Ltd South Africa Rand Local principal currency
New Hope Turkey Feed and Farming Food Import & Export Turkey Lira Local principal currency
and Industry Ltd
412
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
New Hope Laos Co., Ltd Laos Kip Local principal currency
New Hope Agro Business Nepal Pvt Ltd Nepal NPR Local principal currency
New Hope Poland Ltd Poland Zloty Local principal currency
New Hope Kolkata Animal Feed Private Ltd India INR Local principal currency
New Hope Agro-technology Nigeria Ltd Nigeria Naira Local principal currency
Hong Kong Dongxian Technology Co., Ltd Hong Kong HKD Local principal currency
63. Government subsidy
(1) Basic details of government subsidy
Unit: Yuan
Items Amount charged to
Category Amount
presented current profit and loss
Deferred
Baoji New Hope—2020 SME technical renovation program bonus 60,000.00 0.00
income
Beijing Xinliu—subsidy from the swine industry optimization and Deferred
20,400,000.00 280,500.00
improvement program income
Deferred
Changyi Xinhao—agricultural machinery subsidy 150,000.00 1,250.00
income
Deferred
Chenzhou Xinhao- environmental protection subsidy 200,000.00 0.00
income
Deferred
Livestock Technology—Zhuge Elite Program 600,000.00 0.00
income
Deferred
Gansu Xinhao-equipment subsidy 200,000.00 12,609.25
income
Joint-stock company HQ—a prioritized project of “Belt and Road” and Deferred
3,000,000.00 0.00
international capacity cooperation income
Deferred
Guanglv Xinliu-subsidy for a 10,000-pig farm 5,180,000.00 431,664.00
income
Guanglv Xinliu—Xiaoshan District subsidy for improved varieties of live Deferred
57,842.00 22,432.16
pigs income
Deferred
Guangyuan Xinhao—20 subsidy for large-scale pig farm construction 500,000.00 2,083.33
income
Guangzhou Hope-- Demonstration of efficient bacteria and algae
Deferred
wastewater recycling system and low-resistance feed products optimized by 240,000.00 46,563.25
income
big data
Deferred
Hezhou Xinhao—breeding farm construction subsidy 1,000,000.00 8,403.36
income
413
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Deferred
Huzhou Haihuang—construction reward 442,200.00 0.00
income
Deferred
Technology Venture—house rent subsidy 120,000.00 0.00
income
Laiyang Liuhe—Yantai two-hundred talent program (technology
Deferred
development, demonstration and promotion for efficient eco-friendly feed 200,000.00 100,000.00
income
formula for broilers)
Deferred
Lanzhou New Hope—government subsidy for on-the-job training 51,400.00 26,600.00
income
Deferred
Lezhi Xinhai-live pig insurance subsidy 50,688.00 0.00
income
Liuhe Group-- Research, development and application of new veterinary
Deferred
drugs and new additives of bacteriophage for super bacteria (special 200,000.00 78,008.53
income
project)
Liuhe Group- Research and industrialization promotion of key technologies
Deferred
of environment-friendly, antibiotic-free feed for swine and poultry 249,000.00 174,014.02
income
(special project)
Deferred
Longhui Xinhai-manure recycling program 800,000.00 0.00
income
Deferred
Luocheng Xinhao-manure fermentation tank project subsidy 1,000,000.00 11,111.12
income
Deferred
Pengshan New Hope-industrial development contribution subsidy 100,000.00 8,333.33
income
Ruyuan Xinhao—special monetary subsidy for purchase of new-type Deferred
3,000,000.00 0.00
equipment by agricultural enterprises income
Deferred
Santai Farming—fertile sow subsidy for Santai Farming 531,300.00 46,735.14
income
Deferred
Santai Farming--Subsidy for project construction 200,000.00 108,264.45
income
Century Investment-key technology research and integration demonstration
Deferred
for quality and efficiency improvement of swine industry chain in Sichuan 650,000.00 9,687.00
income
(special program)
Century Investment—development and application of new antibiotic-free Deferred
800,000.00 181,768.69
healthcare feed products for pigs (special program) income
Taian Jingwei Feed-2020 provincial-level industrial transformation and Deferred
10,000.00 0.00
development income
Deferred
Tangshan Xinhao-subsidy for agricultural machinery 268,400.00 26,840.01
income
Weifang New Hope-subsidy for two-new Party organization work program 3,000.00 Deferred 0.00
414
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
income
Deferred
Weifang New Hope-compensation for road repairing 80,000.00 0.00
income
Deferred
Weifang New Hope—Yuandu Talent Program 300,000.00 104,686.04
income
Weifang New Hope: Research and industrialization promotion of key
Deferred
technologies of environment-friendly, antibiotic-free feed for swine and 558,590.00 405,039.17
income
poultry
Deferred
Weinan Zhengneng—subsidy for agricultural machinery 22,000.00 12,222.20
income
Deferred
Xiajin Farming—subsidy for agricultural machinery acquisition 136,860.00 15,206.68
income
Deferred
Xiajin Breeding—subsidy for agricultural machinery 45,620.00 14,151.86
income
Deferred
Xindongwan Xinliu-reward in lieu of government subsidy 3,990,000.00 332,499.00
income
Deferred
Yanting Xinhao-industrial development fund 50,000.00 4,166.67
income
Deferred
Yanting Xinhao-fertile sow subsidy 800,000.00 200,000.01
income
Yanting Xinhao-municipal-level agricultural industry development fund Deferred
2,000,000.00 83,333.35
subsidy income
Yingtan Xinliu-2020 fifth batch of subsidies for variety introduction of Deferred
514,500.00 28,583.34
breeding hogs and fertile sows income
Deferred
Yucheng Xinliu- reward for major pig-producing counties 70,000.00 0.00
income
Zhaoqing Xinhao—government subsidy for agricultural industry park Deferred
500,000.00 109,999.98
funding income
Deferred
Zhongyang Farming-henhouse subsidy 1,980,000.00 82,500.00
income
Deferred
Ziyang Jiahao- scientific and technical training program 210,000.00 0.00
income
Deferred
Interest subsidy 1,834,669.40 1,834,669.40
income
Other
Amortization of deferred income-assets 7,954,825.44 7,954,825.44
income
Other
Amortization of deferred income-income 4,267,449.45 4,267,449.45
income
Rebate of handling fee on withheld personal income tax 7,822,903.89 Other 7,822,903.89
415
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
income
Other
Government subsidy related to daily business activities 84,218,074.40 84,218,074.40
income
Total 157,619,322.58 109,067,178.52
(2) Return of government subsidies
□ applicable √ not applicable
Other remarks:
VIII. Changes in scope of consolidation
1. Business combination not under common control
(1) Current business combinations not under common control
Unit: Yuan
Revenue of the Net profits of
acquired party the acquired
Time of Ratio of Way of Basis for
Name of the Cost of equity Purchase from the party from the
equity equities equity determination of
acquired party acquisition date purchase date to purchase date
acquisition acquired acquisition purchase date
end of the to end of the
period period
Investment
amount paid and
Jiangsu Suxinyuan March 3, March 3,
18,005,456.56 100.00% Cash business -161,333.21
Feed Co., Ltd 2021 2021
registration
changed
Investment
amount paid and
Puyang New Hope March 4, March 4,
22,800,000.00 100.00% Cash business 1,300.00 435.15
Feed Co., Ltd 2021 2021
registration
changed
Investment
Changxing Heping amount paid and
April 2, April 2,
Huatong 66,310,000.00 100.00% Cash business 5,040.00 16,332.41
2021 2021
Livestock Co., Ltd registration
changed
Investment
Changxing
April 2, April 2, amount paid and
Huatong 160,559,166.67 100.00% Cash -41,963.56
2021 2021 business
Livestock Co., Ltd
registration
416
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
changed
Investment
Zhangjiajie amount paid and
May 14, May 14,
Xinruixing Feed 44,252,867.39 70.00% Cash business 44,781,755.15 2,232,065.98
2021 2021
Co., Ltd registration
changed
Investment
amount paid and
Hezhou Jiuding June 4, June 4,
21,740,478.71 100.00% Cash business -106,418.85
Farming Co., Ltd 2021 2021
registration
changed
Investment
Huzhou Haihuang amount paid and
June 2, June 2,
Biotechnology 240,000,000.00 100.00% Cash business 40,095,290.65 -590,409.36
2021 2021
Co., Ltd registration
changed
Other remarks:
Huzhou Haihuang Biotechnology Co., Ltd purchased this year included 1 wholly-owned subsidiary Hangzhou Hongjing Agricultural
Technology Co., Ltd and 1 wholly-owned sub-subsidiary Zhenjiang Hongjing Agricultural Technology Co., Ltd.
(2) Combination cost and goodwill
Unit: Yuan
Changxing
Changxing Hezhou Huzhou
Jiangsu Puyang New Heping Zhangjiajie
Huatong Jiuding Haihuang
Combination cost Suxinyuan Hope Feed Huatong Xinruixing
Livestock Co., Farming Co., Biotechnology
Feed Co., Ltd Co., Ltd Livestock Co., Feed Co., Ltd
Ltd Ltd Co., Ltd
Ltd
-cash 18,005,456.56 22,800,000.00 66,310,000.00 160,559,166.67 44,252,867.39 21,740,478.71 240,000,000.00
Total combination
18,005,456.56 22,800,000.00 66,310,000.00 160,559,166.67 44,252,867.39 21,740,478.71 240,000,000.00
cost
Minus: share of fair
value of identifiable 18,233,285.70 22,892,496.95 66,310,000.00 160,559,166.67 44,252,867.39 21,740,478.71 240,000,000.00
net assets acquired
Amount of
goodwill/combination
cost lower than the
-227,829.14 -92,496.95
share of fair value of
identifiable net assets
acquired
Remarks on method for determination of fair value of combination cost, contingent consideration and its changes:
417
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Main causes of formation of large-sum goodwill:
Other remarks:
(3) Identifiable assets and liabilities of the acquired party at the purchase date
Unit: Yuan
Jiangsu Suxinyuan Feed Co., Puyang New Hope Feed Changxing Heping Huatong Changxing Huatong Livestock
Ltd Co., Ltd Livestock Co., Ltd Co., Ltd
Book value
Fair value at Book value at Fair value at Fair value at Book value at Fair value at Book value at
at the
the purchase the purchase the purchase the purchase the purchase the purchase the purchase
purchase
date date date date date date date
date
Cash at
bank and on 4,450,525.36 4,450,525.36 17,406,737.41 17,406,737.41
hand
Receivables
Inventories 66,661.00 66,661.00 128,081.00 128,081.00
22,268,972.0 22,268,972.0 17,993,107.1 6,036,454.8
Fixed assets 8,448,520.63 8,448,520.63
0 0 4 7
Intangible 3,117,097.5
3,558,857.14 3,558,857.14 4,809,861.00
assets 4
Notes
receivable
Other
22,867.81 22,867.81 935,044.19 935,044.19
receivables
Prepayment
4,105,182.37 4,105,182.37 1,064,861.39 1,064,861.39
s
Other
current
assets
Constructio
66,130,353.9 66,130,353.9 296,018,445.9 296,018,445.9
n in
6 6 1 1
progress
Long-term
unamortized 419,170.23 419,170.23 9,051,009.50 9,051,009.50
expenses
Deferred
income tax
assets
Borrowings 157,218,273.6 157,218,273.6
418
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
1 1
Payables 8,556,136.84 8,556,136.84 14,289,147.09 14,289,147.09
Contract
liabilities
Other
7,594,543.44 7,594,543.44 200,000.00 200,000.00 391,650.99 391,650.99
payables
Taxes and
dues 39,095.08 39,095.08 154,461.67 154,461.67
payable
Payroll
440,000.00 440,000.00
payable
Deferred
income
18,233,285.7 18,233,285.7 22,892,496.9 9,243,081.2 66,310,000.0 66,310,000.0 160,559,166.6 160,559,166.6
Net assets
0 0 5 2 0 0 7 7
Net assets 18,233,285.7 18,233,285.7 22,892,496.9 9,243,081.2 66,310,000.0 66,310,000.0 160,559,166.6 160,559,166.6
acquired 0 0 5 2 0 0 7 7
Huzhou Haihuang Biotechnology
Zhangjiajie Xinruixing Feed Co., Ltd Hezhou Jiuding Farming Co., Ltd
Co., Ltd
Fair value at the Book value at the Fair value at the Book value at the Fair value at the Book value at the
purchase date purchase date purchase date purchase date purchase date purchase date
Cash at bank and
32,548,661.39 32,548,661.39 30,104,444.58 30,104,444.58
on hand
Receivables 1,685,864.52 1,685,864.52 81,983,785.04 81,983,785.04
Inventories 14,391,546.63 14,391,546.63 69,775.15 69,775.15 77,638,679.96 77,638,679.96
Fixed assets 16,774,784.70 16,774,784.70 31,521,851.00 21,789,716.82 37,596,103.08 37,596,103.08
Intangible assets 42,805,264.35 9,268,172.50 8,456,221.85 1,976,291.19 90,662,487.12 90,662,487.12
Notes receivable 1,000,000.00 1,000,000.00
Other receivables 134,179.34 134,179.34 712,559.16 712,559.16
Prepayments 615,801.77 615,801.77 3,646,994.31 3,646,994.31
Other current
236,460.42 236,460.42
assets
Construction in
3,062,120.00 3,062,120.00
progress
Long-term
unamortized 281,979.75 281,979.75
expenses
419
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Deferred income
10,000.00 10,000.00 1,399,008.06 1,399,008.06
tax assets
Borrowings
Payables 44,143,371.53 44,143,371.53 26,319,578.34 26,319,578.34
Contract
8,604,522.03 8,604,522.03
liabilities
Other payables 1,111,884.61 1,111,884.61 18,307,369.29 18,307,369.29 50,693,116.31 50,693,116.31
Taxes and dues
2,824.72 2,824.72
payable
Payroll payable 489,639.86 489,639.86 2,265,204.80 2,265,204.80
Deferred income 442,200.00 442,200.00
Net assets 63,218,381.98 29,681,290.13 21,740,478.71 5,528,413.87 240,000,000.00 240,000,000.00
Net assets
44,252,867.39 20,776,903.09 21,740,478.71 5,528,413.87 240,000,000.00 240,000,000.00
acquired
Method for determination of fair value of identifiable assets and liabilities:
Contingent liabilities of the acquired party assumed in the business combination:
Other remarks:
(4) Earnings or losses arising from re-measurement of equities held prior to purchase date at fair value
Whether there were any transactions in which business combination was realized step by step through multiple transactions and
control was acquired in the reporting period
□Yes √No
（5）Related remarks on inability to reasonably determine the consideration for combination or the fair
value of identifiable assets and liabilities of the acquired party at the purchase date or at the end of period
of combination
2. Disposal of subsidiaries
Where there were any circumstances in which the company lost control upon a single disposal of investments in subsidiaries
√ Yes □ No
Unit: Yuan
Time The Ratio of Book Fair Earnings or Method Amount of
Ratio Way Basis for
of difference remaini value of value of losses from for other
Name of Price of of of determinat
loss between ng remaini remaini re-measurem determinat comprehens
subsidiar equity equity equity ion of time
of disposal equities ng ng ent of ion of fair ive income
y disposal dispos dispos of loss of
contr price and at the equities equities remaining value of transferred
al al control
ol the share date of at the at the equities at remaining to
420
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
of net loss of date of date of fair value equities at investment
assets of control loss of loss of the date of profit and
the control control loss of loss in
subsidiary control connection
at the and main with
consolidate assumptio original
d level ns equity
correspond investment
ing to in
disposal of subsidiary
investment
Zibo
Xinmu
Mechani June Business
7,146,100. 100.00 Transf 6,494,745.
cal 24, registratio
00 % er 48
Technolo 2021 n changed
gy Co.,
Ltd
Other remarks:
Whether there were any circumstances in which the company lost control in the current period through multi-transaction,
step-by-step disposal of investment in subsidiary
□ Yes √ No
3. Changes in scope of consolidation for other reasons
Remarks on changes to the scope of consolidation due to other reasons (e.g., establishment of a new subsidiary, liquidation of a
subsidiary, etc.) and related circumstances:
(1)Subsidiaries newly established in the current period
Name of subsidiary Ending net assets Current net profits
Qingdao New Hope Xinrong Technology Group Co., 9,384,142.07 -615,857.93
Ltd
Shenxian Xinliu Farming Co., Ltd
Yingshan Xinyue Farming Technology Co., Ltd
Rongxian Xinyue Farming Technology Co., Ltd
Sichuan New Hope Liuhe Swine Breeding Technology
Co., Ltd
Laibin New Hope Liuhe Farming Technology Co., Ltd 38,278.55 38,278.55
New Hope Liuhe (Zibo) Agricultural Technology 34,014.63 34,014.63
Development Co., Ltd
Wuwei New Hope Liuhe Feed Co., Ltd 19,972,495.89 -27,504.11
Sishui Dasheng Breeding Co., Ltd
Qingdao Xinjia Biotechnology Co., Ltd 95,562.91 95,562.91
421
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Guiyang Xinhao Farming Co., Ltd
New Hope Animal Nutrition Bangladesh Co., Ltd 12,735,798.61 -64,855.11
Dingzhou Xinhao Feed Co., Ltd 14,927,603.85 -72,396.15
Yulin Guoxiong Feed Co., Ltd 19,148,830.89 -851,169.11
Huizhou Liuhe Feed Co., Ltd 9,268,111.53 -731,888.47
Jiangmen Xinhui District Liuhe Biotechnology Co., 9,800,808.69 -199,191.31
Ltd
Wushan New Hope Boar Breeding Technology Co.,
Ltd
Heishan New Hope Feed Co., Ltd -510.20 -510.20
Guangzhou Xinhe Biological Feed Co., Ltd 20,000,527.71 527.71
Fenxi New Hope Liuhe Food Co., Ltd 90,316,350.19 -9,683,649.81
Guangxi Xinwang Supply Chain Management Co.,
Ltd
Hainan New Hope Liuhe Supply Chain Technology
Co., Ltd
Shandong Xiangan Livestock & Poultry Breeding Co., -445.37 -445.37
Ltd
Ziyang New Hope Feed Co., Ltd
Shibin New Hope Agricultural Technology Co., Ltd
Ya’an New Hope Feed Co., Ltd
New Hope Davao Agriculture Inc.
Qingdao New Hope Herun Biotechnology Co., Ltd 4,998,760.00 -1,240.00
Zouping Xinmu Meat Duck Breeding Co., Ltd
Lvliang New Hope Liuhe Farming Co., Ltd
Shandong New Hope Liuhe Farming Technology Co., 5,000,661.83 661.83
Ltd
Note: the blanks in the above table are data unavailable.
(2) Subsidiaries deregistered in the current period
Name of subsidiary Net assets at the date deregistered Net profits from beginning of the
period to date deregistered
Zhecheng Liuhe Xingnong Feed Co., Ltd -12,212,108.22 -123.73
Weiyuan Xinliu Farming Technology Co., Ltd
Feixian Liuhe Feed Co., Ltd 18,924.83 -5,460.00
Kaili Xinyue Farming Technology Co., Ltd
MSFX Food Technology (Beijing) Co., Ltd -7,908,823.45 -41.99
Julu Xinhao Farming Co., Ltd
Beichuan Xinchangle Farming Co., Ltd -2,619,570.16 202.89
Hainan Danzhou Xinliu Farming Technology Co., Ltd
Sishui Dasheng Breeding Co., Ltd
Haiyang Xinhao Livestock Co., Ltd
422
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Linqing Xinliu Farming Technology Co., Ltd
Note: the blanks in the above table are data unavailable.
IX. Equities in other entities
1. Equities in subsidiaries
(1) Composition of business group
Principal Shareholding
Place of
Name of subsidiary place of Nature of business ratio Way of acquisition
registration
business Direct Indirect
Shandong New Hope Liuhe Group Co. , Qingdao, Qingdao, Feeds, veterinary Business combination
86.73%
Ltd Shandong Shandong drugs under common control
Qingdao, Qingdao, Feed production and Business combination
New Hope Liuhe Feed Co., Ltd 24.00% 76.00%
Shandong Shandong sale under common control
Sichuan New Hope Liuhe Farming Co., Chengdu, Chengdu, Business combination
Feed sale, investment 100.00%
Ltd Sichuan Sichuan under common control
Established by
New Hope Singapore Pte. Ltd Singapore Singapore Trade, investment 100.00%
investment
New Hope International Holdings (Pte) Established by
Singapore Singapore Trade, investment 100.00%
Ltd investment
Livestock breeding, Established by
Tibet Xinhao Technology Co., Ltd Lhasa, Tibet Lhasa, Tibet 100.00%
investment investment
New Hope Liuhe Food Holdings Co., Chengdu, Established by
Lhasa, Tibet Investment, R&D 100.00%
Ltd Sichuan investment
Business combination
Yangling Besun Agricultural Industry Yangling, Yangling, Livestock breeding,
73.56% not under common
Group Co., Ltd Shaanxi Shaanxi slaughtering
control
Guanghan, Guanghan, Feed production and Established by
Guanghan Guoxiong Feed Co., Ltd 100.00%
Sichuan Sichuan sale investment
Ermeishan New Hope Liuhe Feed Co., Ermeishan, Ermeishan, Feed production and Established by
100.00%
Ltd Sichuan Sichuan sale investment
Guangyuan New Hope Liuhe Farming Guangyuan, Guangyuan, Established by
Livestock breeding 100.00%
Technology Co., Ltd Sichuan Sichuan investment
Mianyang New Hope Liuhe Farming Mianyang, Mianyang, Feed production and Established by
100.00%
Technology Co., Ltd Sichuan Sichuan sale investment
Chongqing Tongliang New Hope Liuhe Tongliang, Tongliang, Feed production and Established by
100.00%
Farming Technology Co., Ltd Chongqing Chongqing sale investment
Wulong New Hope Liuhe Feed Co., Ltd Wulong, Wulong, Feed production and 100.00% Established by
423
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Chongqing Chongqing sale investment
Kunming New Hope Agricultural Kunming, Kunming, Feed production and Established by
100.00%
Technology Co., Ltd Yunnan Yunnan sale investment
Qujing, Qujing, Feed production and Business combination
Qujing Guoxiong Feed Co., Ltd 90.00% 10.00%
Yunnan Yunnan sale under common control
Dehong Dehong
Mangshi New Hope Farming Feed production and Established by
Prefecture, Prefecture, 100.00%
Technology Co., Ltd sale investment
Yunnan Yunnan
Kunming New Hope Animal Nutritious Kunming, Kunming, Feed production and Established by
100.00%
Food Co., Ltd Yunnan Yunnan sale investment
Zunyi, Zunyi, Feed production and Business combination
Zunyi Jiahao Feed Co., Ltd 100.00%
Guizhou Guizhou sale under common control
Zunyi New Hope Liuhe Agricultural Zunyi, Zunyi, Feed production and Established by
100.00%
Technology Co., Ltd Guizhou Guizhou sale investment
Haikou, Haikou, Established by
Hainan New Hope Agriculture Co., Ltd Livestock breeding 100.00%
Hainan Hainan investment
Taizhou, Taizhou, Feed production and Established by
Taizhou New Hope Agriculture Co., Ltd 100.00%
Jiangsu Jiangsu sale investment
Feed production and Established by
Lhasa New Hope Industrial Co., Ltd Lhasa, Tibet Lhasa, Tibet 55.00%
sale investment
Beijing New Hope Farming Technology Feed production and Established by
Beijing Beijing 75.00% 25.00%
Co., Ltd sale investment
Feed production and Established by
Hebei New Hope Feed Co., Ltd Xinji, Hebei Xinji, Hebei 100.00%
sale investment
Baoji, Baoji, Feed production and Established by
Baoji New Hope Farming Co., Ltd 100.00%
Shaanxi Shaanxi sale investment
Xianyang, Xianyang, Feed production and Established by
Sanyuan New Hope Feed Co., Ltd 100.00%
Shaanxi Shaanxi sale investment
Wuzhou, Wuzhou, Feed production and Established by
Wuzhou New Hope Liuhe Feed Co., Ltd 100.00%
Guangxi Guangxi sale investment
Guangxi New Hope Liuhe Breeding Co., Nanning, Nanning, Established by
Livestock breeding 100.00%
Ltd Guangxi Guangxi investment
Yongzhou New Hope Liuhe Feed Co., Yongzhou, Yongzhou, Feed production and Established by
100.00%
Ltd Hunan Hunan sale investment
Huaihua, Huaihua, Feed production and Established by
Huaihua New Hope Liuhe Feed Co., Ltd 100.00%
Hunan Hunan sale investment
Huanggang New Hope Feed Technology Huanggang, Huanggang, Feed production and Established by
100.00%
Co., Ltd Hubei Hubei sale investment
Yingtan New Hope Feed Co., Ltd Yingtan, Yingtan, Feed production and 100.00% Established by
424
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Jiangxi Jiangxi sale investment
Ningxia New Hope Ruminant Animal Qingtongxia, Qingtongxia, Feed production and Established by
100.00%
Nutritious Food Co., Ltd Ningxia Ningxia sale investment
Xiangyang New Hope Liuhe Feed Co., Xiangyang, Xiangyang, Feed production and Established by
100.00%
Ltd Hubei Hubei sale investment
Guangzhou, Guangzhou, Feed production and Established by
Guangzhou Liuhe Feed Co., Ltd 61.00%
Guangdong Guangdong sale investment
Ermeishan, Ermeishan, Production and sale Established by
Sichuan Xinle Plastics Co., Ltd 100.00%
Sichuan Sichuan of woven bags investment
Jiangsu Tiancheng Healthcare Products Haian, Haian, Production and sale Established by
51.00%
Co., Ltd Jiangsu Jiangsu of additives investment
Beijing Xindaolu Agricultural Consulting Established by
Beijing Beijing 100.00%
Technology Co., Ltd management investment
Chengde, Chengde, Established by
Hebei New Hope Farming Co., Ltd Livestock breeding 100.00%
Hebei Hebei investment
Yunnan New Hope Liuhe Breeding Co., Kunming, Kunming, Established by
Livestock breeding 100.00%
Ltd Yunnan Yunnan investment
Tibet Linzhi New Hope Liuhe Breeding Established by
Linzhi, Tibet Linzhi, Tibet Livestock breeding 60.00%
Co., Ltd investment
Shandong Qinwang Breeding Qingdao, Qingdao, Established by
Consulting, services 80.00%
Consulting Co., Ltd Shandong Shandong investment
Qingdao Feidake Food Technology Co., Qingdao, Qingdao, Established by
Investment 70.00%
Ltd Shandong Shandong investment
Qingdao Xinhang Engineering Qingdao, Qingdao, Engineering project Established by
100.00%
Management Co., Ltd Shandong Shandong management investment
Golden Oak Investment Holdings Established by
Tianjin Tianjin Trade 100.00%
(Tianjin) Co., Ltd investment
Tianjin Dingcheng Zhizi Investment Established by
Tianjin Tianjin Investment 100.00%
Co., Ltd investment
Established by
New Hope Liuhe Investment Co., Ltd Shanghai Lhasa, Tibet Investment 75.00%
investment
Santai New Hope Farming Financing Mianyang, Mianyang, Established by
Guarantee 100.00%
Guarantee Co., Ltd Sichuan Sichuan investment
Business combination
Chengdu, Chengdu, Production and sale
Chengdu Fenglan Technology Co., Ltd 75.00% not under common
Sichuan Sichuan of additives
control
Xiaogan, Xiaogan, Processing and sale Established by
Wuhan Liuhe Food Co., Ltd 55.00%
Hubei Hubei of poultry investment
Sichuan New Hope Liuhe Technological Chengdu, Chengdu, Testing, consulting 100.00% Established by
425
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Innovation Co., Ltd Sichuan Sichuan investment
Sichuan New Hope Animal Nutrition Chengdu, Chengdu, Purchase and sale of Established by
100.00%
Technology Co., Ltd Sichuan Sichuan feed ingredients investment
Qingdao Xinmu Zhihe Technology Co., Qingdao, Qingdao, Manufacture and sale Established by
20.00% 80.00%
Ltd Shandong Shandong of machinery investment
Xintai, Xintai, Feed production and Established by
Xintai New Hope Feed Co., Ltd 24.00% 76.00%
Shandong Shandong sale investment
Remarks on shareholding ratio in subsidiary different from the ratio of voting power:
Basis of control of investee while holding half or less of voting power and of non-control of investee while holding half or more of
voting power:
Basis of control for important structured entities included in the scope of consolidation:
Basis of determining whether the company is agent or principal:
Other remarks:
Apart from the aforesaid subsidiaries, the company has 730 subsidiaries indirectly controlled by it, which are mainly distrib uted
in 30 Chinese provinces and municipalities, Southeast Asian countries and South Africa, dealing with feed production, breeding and
slaughtering, etc.
(2) Important non-wholly-owned subsidiaries
Unit: Yuan
Shareholding ratio Current profit and loss Current dividends Ending balance of
Name of subsidiary of minority attributable to minority declared and distributed equities of minority
shareholders shareholders to minority shareholders shareholders
New Hope Liuhe Investment
25.00% 277,236,788.45 5,229,747,299.28
Co., Ltd
Shandong New Hope Liuhe
13.27% 28,176,040.71 41,076,388.89 798,158,590.22
Group Co., Ltd
Remarks on shareholding ratio of minority shareholders in subsidiaries different from ratio of voting power:
Other remarks:
(3) Key financial information of important non-wholly-owned subsidiaries
Unit: Yuan
Ending balance
Name of
Noncurrent
subsidiary Current assets Noncurrent assets Total assets Current liabilities Total liabilities
liabilities
New Hope
Liuhe
399,342,378.83 20,519,646,818.27 20,918,989,197.10
Investment Co.,
Ltd
426
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
Shandong New
Hope Liuhe 17,440,922,155.56 7,030,214,650.29 24,471,136,805.85 13,317,091,604.89 4,310,812,227.68 17,627,903,832.57
Group Co., Ltd
Beginning balance
Name of
Noncurrent
subsidiary Current assets Noncurrent assets Total assets Current liabilities Total liabilities
liabilities
New Hope
Liuhe
9,913,500.93 19,773,695,095.38 19,783,608,596.31
Investment Co.,
Ltd
Shandong New
Hope Liuhe 15,163,206,598.40 6,446,558,675.96 21,609,765,274.36 12,090,024,454.13 2,532,506,862.88 14,622,531,317.01
Group Co., Ltd
Unit: Yuan
Current amount incurred
Name of subsidiary Total comprehensive Cash flows from
Business revenue Net profits
income operating activities
New Hope Liuhe Investment Co., Ltd 1,108,947,153.79 1,135,380,600.79 -4,850.21
Shandong New Hope Liuhe Group Co.,
31,259,636,215.16 260,432,515.07 260,271,953.30 -1,453,577,381.18
Ltd
Prior-period amount incurred
Name of subsidiary Total comprehensive Cash flows from
Business revenue Net profits
income operating activities
New Hope Liuhe Investment Co., Ltd 1,187,850,602.74 1,114,730,593.70 -315,159.76
Shandong New Hope Liuhe Group Co.,
21,906,906,318.58 296,656,200.26 296,944,535.38 1,573,342,209.23
Ltd
Other remarks:
(4)Significant restrictions on use of assets of business group and satisfaction of debts of business group
None
(5) Financial or other support provided to structured entities included in the scope of consolidated financial
statements
None
Other remarks:
427
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
2. Transactions in which the company’s share of ownership interest in a subsidiary changes and the
company still controls the subsidiary
(1) Remarks on changes in share of ownership interest of subsidiary
The share of ownership interest (shareholding ratio) of the company and its subsidiaries in some of respective subsidiaries
changed in this year, with the changes in such shareholding ratio and the effects thereof on the control of the company as fo llows:
Name of subsidiary Shareholding ratio before Shareholding ratio after Whether the Date of equity
change (%) change (%) shareholding ratio purchase
Direct Indirect Direct Indirect changes resulted in
shareholding shareholding shareholding shareholding loss of control of the
company
Liaocheng Development Area 70.00 100.00 No March 2021
Liuhe Feed Co., Ltd
Henan Liuhe Feed Co., Ltd 75.02 100.00 No March 2021
Guantao Liuhe Food Co., Ltd 70.00 100.00 No February 2021
Lijin Liuhe Breeding Ducks Co., 75.00 100.00 No May 2021
Ltd
（2）Effect of transaction on minority interest and ownership interest attributable to parent company
Unit: yuan
Liaocheng Development Henan Liuhe Feed Guantao Liuhe Food Lijin Liuhe Breeding
Area Liuhe Feed Co., Ltd Co., Ltd Co., Ltd Ducks Co., Ltd
Purchase cost/disposal consideration 13,976,176.39 5,519,235.12 35,792,170.05 16,842,180.52
-cash 13,976,176.39 5,519,235.12 35,792,170.05 16,842,180.52
Total purchase cost/disposal
13,976,176.39 5,519,235.12 35,792,170.05 16,842,180.52
consideration
Minus: share of net assets in subsidiary
calculated at the shareholding ratio 12,891,038.01 3,918,458.84 32,749,681.89 16,738,945.92
acquired/disposed of
Difference -323,887.73 1,044,347.52 -1,705,450.58 -2,130,931.17
Wherein: capital reserve adjustment -323,887.73 1,044,347.52 -1,705,450.58 -2,130,931.17
Other remarks
The share of net assets of subsidiaries calculated by the shareholding ratios acquired in the aforesaid table is calculated by the
ultimate shareholding ratio attributable to the parent company to adjust the capital reserve affecting the ownership interest of the
parent company.
428
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
3. Equities in joint ventures or affiliates
(1) Important joint ventures or affiliates
Principal Shareholding
Name of joint venture or Place of Nature of Accounting treatment method for investments in
place of ratio
affiliate registration business joint ventures or affiliates
business Direct Indirect
China Minsheng Bank Beijing Beijing Finance 4.18% Equity method
Chengdu, Chengdu,
New Hope Finance Co., Ltd Finance 34.00% 6.00% Equity method
Sichuan Sichuan
Remarks on shareholding ratio in joint ventures or affiliates different from voting power:
None.
Basis for holding less than 20% voting power but with significant influence or holding 20% or more voting power but without
significant influence:
①Basis for holding less than 20% voting power but with significant influence:
A majority-owned subsidiary New Hope Liuhe Investment Co., Ltd holds 1,828,327,362 shares of stock in China Minsheng
Bank, or a shareholding ratio of 4.1759%, in which director and actual controller of the company Mr. Liu Yonghao acts as a director;
the company has the power to participate in financial and business decision making of China Minsheng Bank and this investment is
accounted for under the equity method due to the company having significant inf luence over China Minsheng Bank.
②Basis for holding 20% or more voting power but without significant influence:
None.
(2) Key financial information of important affiliates
Unit: Yuan
Ending balance/current amount incurred Beginning balance/prior amount incurred
New Hope Finance New Hope Finance
China Minsheng Bank China Minsheng Bank
Co., Ltd Co., Ltd
Current assets 785,765,000,000.00 8,183,270,074.53 746,048,000,000.00 9,991,550,544.66
Noncurrent assets 6,283,943,000,000.00 7,152,675,128.75 6,204,185,000,000.00 7,332,250,036.72
Total assets 7,069,708,000,000.00 15,335,945,203.28 6,950,233,000,000.00 17,323,800,581.38
Current liabilities 5,735,076,000,000.00 13,525,786,075.05 5,416,651,000,000.00 15,595,219,058.07
Noncurrent liabilities 747,337,000,000.00 992,334,000,000.00
Total liabilities 6,482,413,000,000.00 13,525,786,075.05 6,408,985,000,000.00 15,595,219,058.07
Minority interest 111,715,000,000.00 81,571,000,000.00
Shareholder equity attributable to
475,580,000,000.00 1,810,159,128.23 459,677,000,000.00 1,728,581,523.31
the parent company
Share of net assets calculated at 19,859,745,220.00 724,063,651.29 19,195,651,843.00 691,432,609.33
429
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
shareholding ratio
Book value of equity investments
20,504,619,000.00 724,063,651.29 19,758,667,277.11 691,432,609.33
in affiliates
Fair value of equity investments
in affiliates for which there are 8,062,923,666.42 9,507,302,282.40
public offers
Business revenue 87,775,000,000.00 264,867,854.65 98,108,000,000.00 123,419,464.30
Net profits 26,737,000,000.00 81,577,604.92 28,780,000,000.00 83,443,131.40
Other comprehensive income 659,000,000.00 -1,769,000,000.00
Total comprehensive income 27,396,000,000.00 81,577,604.92 27,011,000,000.00 83,443,131.40
Other remarks
(3) Summary financial information of unimportant joint ventures and affiliates
Unit: Yuan
Ending balance/current amount incurred Beginning balance/prior amount incurred
Joint ventures: -- --
Total book value of investments 1,891,174,814.89 1,842,863,674.25
Total amount of each of the following items
-- --
calculated by shareholding ratio
-net profits -11,528,067.02 -19,654,492.40
-total comprehensive income -11,528,067.02 -19,654,492.40
Affiliates: -- --
Total book value of investments 418,780,591.96 409,116,779.86
Total amount of each of the following items
-- --
calculated by shareholding ratio
-net profits 46,371,237.39 45,190,848.70
-total comprehensive income 46,371,237.39 45,190,848.70
Other remarks
(4) Remarks on significant restrictions on the ability of joint ventures or affiliates to transfer funds to the
company
There were no significant restrictions on the ability of joint ventures or affiliates to transfer funds to the company.
(5) Excess losses incurred by joint ventures or affiliates
Unit: Yuan
Name of joint venture or Accumulation of unrecognized Losses unrecognized in this Accumulated unrecognized
430
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
affiliate prior accumulated losses period (or net profits shares in losses at the end of this period
this period)
Nanjing Heda Food Co., Ltd -1,636,440.11 -1,636,440.11
Taishan Jiaxin Logistics Co.,
-917,599.06 -193,113.88 -1,110,712.94
Ltd
Other remarks
(6) Unrecognized commitments related to investments in joint ventures
The company had no unrecognized commitments related to investments in joint ventures.
(7) Contingent liabilities related to investments in joint ventures or affiliates
The company had no contingent liabilities related to investments in joint ventures or affiliates.
X. Risks related to financial instrume nts
The main financial instruments of the company include cash at bank and on hand, accounts receivable, notes receivable, interest
receivable, dividends receivable, other receivables, other current assets, held-for-trading financial assets, accounts payable, interest
payable, notes payable, payroll payable, dividends payable, other payables, short-term borrowings, held-for-trading financial
liabilities, noncurrent liabilities due within one year, other current liabilities, long-term borrowings, bonds payable and long-term
payables. Details of various financial instruments have been disclosed in related notes. To reduce risks related to financial
instruments, the company formulated corresponding risk management policies and set up corresponding jobs or functional
departments in order to ensure its risk management objectives and policies are effectively carried out; the management manages and
monitors these risk exposures to ensure the aforesaid risks are controlled within a specified scope.
(I) Credit risk
Credit risk refers to a risk that the non-performance by a party to the financial instrument of its obligations might cause financial
risks to the other party. The company mainly faces customer credit risk resulting from credit sales. Before execution of a ne w
contract, the company would assess the credit risk of the new customer, including external credit ratings and bank reference under
certain circumstances (when such information is available). The company has set a credit sale limit for each customer, which is the
maximum amount that requires no additional approval.
(II) Market risk
The market risk of financial instruments refer to the risk that the fair value or future cash flow of financial instruments m ight
fluctuate as a result of changing market prices, including the exchange rate risk, interest rate risk etc.
1. Interest rate risk
The company mainly faces cash flow interest rate risk resulting from floating-rate financial liabilities.
(1) The floating-rate financial liabilities held by the group as of June 30 were as follows:
Item Ending amount Beginning amount
Effective interest rate Amount Effective interest rate Amount
Financial liabilities
Short-term borrowings 0.75%-21.75% 19,010,984,011.32 0.98%-20.75% 10,399,072,204.60
Long-term borrowings (including 1.25%-4.75% 36,116,292,003.76 1.25%-4.75% 24,884,469,449.27
431
2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
those due within one year)
Total 55,127,276,015.08 35,283,541,653.87
（2） Sensitivity analysis
As of June 30, 2021, with other variables held constant, a 25 BP increase in interest rate will result in the company’s net profits
and ownership interest decreased by 103,022,763.24 Yuan (2020: a decrease of 68,887,976.59 Yuan).
For the floating-rate non-derivative instruments held at the balance sheet date that cause the company to face cash flow interest
rate risk, the effect of net profits and ownership interest in the aforesaid sensitivity analysis is after-tax effect of the aforesaid interest
rate change on interest expense or revenue estimated by year. The analysis of the previous year was based on the same assumpt ions
and method.
2. Foreign exchange risk
The company invests and operates in several Asian, African and European countries, with revenues all denominated in local
currencies, but the fluctuations of the exchange rates between these currencies and RMB will affect the figures of overseas r evenue
and profits of the company. For cash at bank and on hand, receivables and payables, long-term and short-term borrowings and other
foreign-currency assets and liabilities that are not denominated in accounting currency, if short-term imbalance occurs, the company
will purchase and sell foreign currencies at market rates when necessary in order to ensure the net risk exposure is kept at an
acceptable level.
(1) The items of foreign-currency assets and liabilities of the company as of June 30 were as follows: Out of consideration for
presentation, the total amount of risk exposure is presented as RMB converted from foreign currencies at the spot exchange rate at
the balance sheet date. The foreign currency statement translation difference is not included.
Item Ending amount Beginning amount
Balance of foreign Balance of RMB converted Balance of foreign Balance of RMB
currency currency converted
Cash at bank and on hand
Wherein: USD 6,548,141.52 42,301,649.00 4,472,063.99 29,179,770.33
SGD 545,621.82 2,620,457.91 402,655.42 1,985,654.94
IDR 3,300,004,174.33 1,470,415.86 6,643.07 3.07
THB 114,377.49 23,044.18
Accounts receivable
Wherein: USD 2,298,871.50 14,850,939.78
Other receivables
Wherein: USD 10,030.28 64,796.61
SGD 1,168.50 5,611.95 1,235.69 6,093.68
Accounts payable
Wherein: USD 3,120,940.13 20,161,585.30 2,332,168.88 15,217,168.73
SGD 110,487.56 530,638.62 378,970.42 1,868,854.73
Other payables
Wherein: USD 108,970.18 703,958.26 3,000.00 19,574.70
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
SGD 46,172.72 221,753.72 84,405.75 416,238.52
Net amount of
foreign-currency items of
balance sheet
Wherein: USD 5,627,132.99 36,351,841.83 2,136,895.11 13,943,026.90
SGD 388,961.54 1,868,065.57 -59,485.06 -293,344.63
IDR 3,300,004,174.33 1,470,415.86 6,643.07 3.07
THB 114,377.49 23,044.18
(2) The analysis of RMB/foreign currency exchange rate applicable to the company is as follows:
Item Average exchange rate in the reporting period Central parity rate at the reporting date
During the period from During the period from June 30, 2021 December 31, 2020
January 1, 2021 to June January 1, 2020 to
30, 2021 June 30, 2020
USD 6.4736 7.0327 6.4601 6.5249
SGD 4.8623 5.0437 4.8027 4.9314
IDR 0.00045167 0.00048046 0.00044558 0.00046264
THB 0.21003338 0.2014748
（3） Sensitivity analysis
Assuming risk variables other than exchange rate remain unchanged, a 5% RMB appreciation due to changes in exchange rates
of RMB and accounting currencies of overseas operating entities of the company versus USD, SGD, IDR and THB as of June 30 will
result in increase(decrease) in ownership interest and net profits as follows (considering 25% income tax). This effect is presented as
RMB converted at the spot exchange rate at the balance sheet date:
Item Ownership interest Net profits
June 30, 2021
USD -1,363,194.07 -1,363,194.07
SGD -70,052.46 -70,052.46
IDR -55,140.59 -55,140.59
THB -864.16 -864.16
Total -1,489,251.28 -1,489,251.28
December 31, 2020
USD -522,863.51 -522,863.51
SGD 11,000.42 11,000.42
IDR -0.12 -0.12
Total -511,863.20 -511,863.20
As of June 30, assuming other variables remain unchanged, a 5% RMB depreciation due to changes in exchange rates of RMB
and accounting currencies of overseas operating entities of the company versus USD, SGD, IDR and THB will result in changes in
ownership interest and net profits in the same amount as those presented in the above table but in the opposite direction.
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2021 Semi- Annual Report of New Hope Liuhe Co., Ltd
The aforesaid sensitivity analysis is derived from re-measurement of financial instruments held by the group and facing
exchange rate risk at the balance sheet date with the changed exchange rate, assuming the exchange rate changes at the balanc e sheet
date. The aforesaid analysis doesn’t include foreign currency statement translation difference. The analysis of the previous year was
based on the same assumptions and method.
3. Liquidity risk
Liquidity risk refers to a risk that a company might incur shortage of funds when performing its obligation to settle accounts by
delivering cash or other financial assets. It is the policy of the company to ensure it has sufficient cash to repay the debts when due.
The liquidity risk is centrally controlled by the company’s finance department. The finance department ensures the company ha s
sufficient funds to repay its debts in all reasonably predicted circumstances by monitoring the cash balance and readily realizable
valuable securities and through rolling forecast of cash flow in the next 12 months.
The remaining contract terms and the earliest dates of required payment of financial liabilities of the company at the balance
sheet date by the undiscounted contractual cash flows (including interest calculated at contract interest rate