Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
New Hope Liuhe Co., Ltd.
Semiannual Report 2022
2022-104
[August 31, 2022]
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Full text of the Semiannual Report 2022 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 that they will be jointly
and severally liable for the legal consequences.
The Company’s Chair of the board Liu Chang, chief accountant Chen
Xingyao and the person in charge of accounting organization (accountant in
charge) Su Xiaodan state that the financial report in this semiannual report is
true, accurate and complete.
All directors of the Company attended the board meeting deliberating this
report.
The Company is required to comply with disclosure requirements set
forth in the “Self-regulatory Guideline No.3 of Shenzhen Stock Exchange for
Listed Companies—Industry Information Disclosure” with respect to
livestock, poultry and aquaculture related 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, directly leading to reduction in yield, rising costs and
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drop in prices. Second, the occurrence and prevalence of epidemic disease on a
large scale easily influence the consumer psychology, lead to shrinking
downstream market demands, 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 lock-down and other
measures to contain the spread of epidemic disease. These epidemic
containment measures will seriously hinder the transportation of feed, anima l
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 outdoors activities, resulting in reduced meat
demand and consumption. For example, the African Swine Fever (ASF) has 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 various degrees. ASF has gradually become normal,
especially in northern regions including Hebei, Shandong and Henan, causing
widespread impact on aquaculture enterprises and farmers in the region.
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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. Since 2022, the outbreak of COVID-19, mainly
caused by the variant Omicron strain, has broken out in many provinces and
cities in China. In addition to obstacles to the flow of personnel and materials
related to production and operation, it is also significantly affecting daily
consumption in cities.
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 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, in the summer of
2021 and 2022, multiple rounds of heavy rainfall occurred in many regions in
China, resulting in flood disasters in many places. They adversely affected the
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planting, breeding, farm produce logistics, project implementation and meat
prices along the industry chain to varying degrees.
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 dise ases through years
of exploration and accumulation, which allow the Company to eliminate 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 and staffs of self-run farms by establishing anima l
healthcare laboratories in various areas, creating the cloud-based anima l
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, pig feed production plant 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
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allowed the Company’s bio-safety epidemic prevention system, pig surviva l
rate and marketing rate to achieve industry-leading levels. From the end of the
2020 to the first quarter of 2021, 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 new challenges to the containment measures formed by the
industry based on the 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 disinfectio n 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 ensure containment, as well as reduce bio-safety containment costs at the
same time.
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 communicated with the government at all levels, coordinated the
transportation of goods such as livestock products, and raw and auxiliary
materials of feed and products, secured vehicle passes, and implemented the
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green channel policy enacted by the government at all levels. Thirdly, the
Company ensured sufficient procurement for feed plants and production
supply through region-wide coordination, strengthened internal support for
poultry industry integration, arranged 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 expanded 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,
organized the epidemic prevention arrangements in a targeted manner and
strengthened employee safety protection.
In response to natural disasters, the Company’s extensive business
portfolio and presence 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 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
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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 various 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. Coupled with the impact of the international
geopolitical conflict that broke out in early 2022 on the prices of agricultura l
commodities, and the continuous tension between China and the U.S., which
brings great uncertainties to the agriculture commodities trade between the
two countries and international trade of feed ingredients in the future, the risk
of price fluctuations will remain for a long time. Moreover, considering the
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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 bargaining power in
the raw material procurement. At present, the Company has established
strategic partnerships with many domestic and overseas best-run raw materia l
suppliers, conducted the supply chain financing of various forms actively, and
optimized its purchasing cost and related financial expenses. Since 2019, the
Company promoted reform in terms of central procurement of raw materials
and acquisition of corn produced in northeast China Since 2020, in the context
of the phase-specific impact of COVID-19 on the prices of feed ingredients and
feed additives, the Company applied hedging tools more to control the
ingredient price fluctuation risk. In the first half of 2022, 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
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The finished products of livestock and poultry breeding business of the
Company mainly include baby chick, baby duck, white feather broiler, white
feather duck, breeding pig, piglet, and hog. In recent years, the pig farming
business of the Company has been growing rapidly, with 9.98 million hogs and
more than 400 million self-raised and outsourced commercial generation
chicken and ducks sold in 2021, 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 2022, the domestic livestock and poultry market as a
whole was in a gradual recovery after hovering at the bottom for a long time.
In terms of pig business, the price of domestic hogs was below 16 Yuan/kg in
the first 5 months of the first half of the year, and it was at a very low position
of about 12 Yuan/kg for 2 months. After June, with the continuous reduction
of pig production capacity, the price began to rebound significantly. In terms
of poultry business, it also experienced a period of downturn in the first half of
2022. The price of white feather broiler fell to about 7 Yuan/kg in the first
quarter, and the price of white feather duck also fell to about 6 Yuan/kg in the
first quarter, a relatively low level in the recent 5 years. However, compared
with hog price, the price of chicken and duck has gradually turned upward
since the second quarter.
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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 price decline as long as it increases its breeding efficiency and makes its
breeding costs lower than its rivals. When some participants withdraw, 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 been committed to continuously increasing its
breeding efficiency. 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
constructed 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 in many ways. 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
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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
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 rest rict
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 Plan for Ecological and Environmental Protection.
Since 2018, the central environmental protection inspectors have conducted
several “follow-up reexaminations”, as the efforts to investigate pollution
caused by livestock farms were strengthened 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 set standards. In 2020, in the
context of the sharp shortage of domestic hog supply caused by ASF, local
governments have gradually relaxed the environmental protection
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requirements for farm construction in order to promote the resumption of hog
production to ensure supply. However, after 2021, as the hog production
capacity gradually recovered to the normal range, the environmental
protection policies related to breeding returned to a more stringent situation.
These pressures from the environmental protection policies will force some
livestock and poultry farms failing to meet the environmental standards out of
the market, and lead to reduced breeding quantities, which will have a certain
impact on the Company’s feed business growth and its acquisition of hogs and
poultry for slaughtering business, and will increase the cost of the Company’s
investment in the construction of breeding capacity. In the long run, however,
the withdrawal of backward production capacity that does not meet the
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 in 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 utilizing
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
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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 areas with environmental condition
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,
litigation or related penalties in a way that even affects their brands and
reputations, thereby materially adversely affecting their business, financia l
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,
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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 to 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 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. In 2022, the Company further separated
the Food Safety and Quality Management Department from the Safety and
Environmental Protection Department, making the latter focus more on food
safety-related work. 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
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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 issued 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 selec ted 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 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 globalization of raw material procurement for feed
production is improved sharply, 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,
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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. In recent years, due to the impact of factors such as the
COVID-19, geopolitics and foreign exchange policy adjustments, the
currencies of many overseas countries where the Company operates
experienced extraordinary fluctuations, and the exchange rate of these
currencies against the US dollar has dropped sharply, posing a great challenge
to foreign exchange management and operational difficulties of the Company.
Risk countermeasures: in response to the growing needs for overseas raw
material procurement and investment and operation, the Company has been
building its Singaporean branch into an overseas commercial and trading
center and investment and financing center, actively conducted international
centralized procurement of raw materials, foreign direct financing, supply
chain finance, foreign exchange risk management, funds management and raw
materials purchasing risk management to reduce the impact of exchange rate
fluctuations on its cash flow in overseas operations. According to the forecast
of the price trend of raw materials in the second half of the year, the Company
set the raw material procurement strategy and trade strategy in advance.
Meanwhile, the Company further strengthened its close connection and
communication with overseas financial institutions, overseas agencies of the
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Chinese government and host governments to analyze the trends of local
currency exchange rates in host countries in time and ease the adverse impact
of exchange rate fluctuations by means of direct investment in local currenc y
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. In the past year, the total number of the
Company's pig breeding team has been maintained at more than 30,000 people,
and management radius of the Company also increased, 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 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 an 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 labor 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 trained a large
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number of outstanding employees in many years, but the competition for
human resources has been intensifying due to the increasing competition in the
industry and entry of new players from different backgrounds in recent years,
the Company will suffer from losing of talents which will subsequently affect
the sustainable development of the Company.
Risk countermeasures: the Company treats employee training and
employee motivation as a long-term strategic task of the Company. In terms of
recruiting talented pig farmers, the Company expanded its recruitment targets
beyond college graduates majored in agriculture and animal husbandry. The
Company started to recruit non-specialized college graduates and veterans.
For pig farmer training, the Company not only standardized and digitalized
daily production processes, but also 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 and training，
and through the modern mentorship system inside pig farms and one-to-one
mentoring by experienced employees, the training time for new employees has
been shortened. The Company further optimized its pig industry talent
incentive system, employees at all levels in pig industry will receive industry-
leading compensation based on their performance and output. In addition, in
order to reduce the pressure on labor cost, the Company became more
aggressive in carrying out projects such as pig farming in multistory buildings,
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intelligent pig farms and IoT, which will significantly increase its efficiency of
personnel utilization.
The Company also intensified its efforts to recruit talented people in new
strategic businesses, while actively conducting cross-industry training and
learning to enhance employees’ knowledge and improve their capability. 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 promotion system
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 fair evaluation mechanisms ,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.
In the first half of 2022, the Company launched the restricted stock incentive
plan and employee stock ownership plan again. These two incentive plans
covered more than 2,000 people, which was unprecedented in the Company's
history. The scope of the incentive objects not only covers the frontline farm
managers in the pig breeding team, but also extends to the frontline key cadres
in other industries of the Company. The new round of equity incentives has
further improved team cohesion and the Company's competitiveness, fully
mobilized the enthusiasm of the Company's senior managers to key frontline
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cadres, and provided a solid guarantee for the Company's steady and
sustainable development in the next few years.
The Company plans not to distribute cash dividends or allot bonus shares
or transfer its provident fund 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 ....................................................................... 25
Section 3 Management Discussion and Analysis ..................................................................................... 28
Section 4 Corporate Governance ........................................................................................................... 63
Section 5 Environmental and Social Responsibilities .............................................................................. 66
Section 6 Important Matters ............................................................................................................... 150
Section 7 Changes in Shares and Information about Shareholders ........................................................ 186
Section 8 Details Related to Preferred Shares....................................................................................... 195
Section 9 Details Related to Bonds....................................................................................................... 196
Section 10 Financial Report ................................................................................................................ 202
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List of Reference Documents
(1) Financial statements bearing the signatures and seals of the CEO, chief accountant and the person in charge of accounting
organization (accountant in charge) of the Company.
(II) Originals of all corporate documents and manuscripts of announcements publicly disclosed on China Securities Journal,
Securities Times, Shanghai Securities News, Securities Daily and cninfo.com during the reporting period.
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Definitions
Term Refers to Definition
The Company, company, listed company,
Refers to New Hope Liuhe Co., Ltd.
New Hope
CSRC Refers to China Securities Regulatory Commission
Sichuan Office of China Securities Regulatory
CSRC Sichuan Refers to
Commission
SZSE Refers to Shenzhen Stock Exchange
CSDC Refers to China Securities Depository and Clearing Co., Ltd.
National Association of Financial Market Institutional
NAFMII Refers to
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.
Hope Group Refers to Hope Group Co., Ltd.
South Hope Refers to South Hope Industrial Co., Ltd.
New Hope Investment Refers to Lhasa ETDZ New Hope Investment Co., Ltd.
China Minsheng Bank Refers to China Minsheng Bank
New Hope Chemical Refers to New Hope Chemical Investment Co., Ltd.
Finance Company Refers to New Hope Finance Co., Ltd.
Liuhe Group Refers to Shandong New Hope Liuhe Group Co., Ltd.
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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
新希望六和股份有限公司.
Company
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, No. 10, 11F, Block T3A, Wangjing SOHO Center, No. 10,
Contract address
Wangjing Street, Chaoyang District, Beijing Wangjing Street, Chaoyang 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. Contact information of the Company
Whether the Company’s registered address, office address, post code, website and email address have been changed during the
reporting period
□applicable not applicable
There is no change in the Company’s registered address, office address, post code, website or email address during the reporting
period, refer to 2021 annual report for details.
2. Information disclosure and filing place
Whether the information disclosure and filing place have been changed during the reporting period
□applicable not applicable
There is no change in the name of the information disclosure newspaper selected by the Company, the website designated by
CSRC for publication of semiannual report or the filing place of the Company’s semiannual report during the reporting period,
refer to 2021 annual report for details.
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3. Other relevant information
Whether other relevant information have been changed during the reporting period
□applicable not applicable
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 reporting period from the
This reporting period
previous year same period of the previous
year
Business revenue (Yuan) 62,329,531,076.64 61,518,574,560.67 1.32%
Net profits attributable to
shareholders of the listed -4,139,743,764.00 -3,415,066,136.23 -21.22%
company (Yuan)
Net profits attributable to
shareholders of the listed
company after deduction of -3,679,945,484.62 -2,304,738,918.62 -59.67%
non-recurring profit or loss
(Yuan)
Net cash flows from operating
-1,133,527,154.46 -4,596,606,685.74 75.34%
activities (Yuan)
Basic earnings per share
-0.93 -0.79 -17.72%
(Yuan/share)
Diluted earnings per share
-0.93 -0.78 -19.23%
(Yuan/share)
A drop of 6.09 percentage
Weighted average ROE -15.37% -9.28%
points
Increase or decrease at the
end of this reporting period
End of this reporting period End of the previous year
from the end of the previous
year
Total assets (Yuan) 135,208,718,542.48 132,734,202,340.59 1.86%
Net assets attributable to
shareholders of the listed 26,720,007,769.37 33,538,553,819.74 -20.33%
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 profit and net assets in financial reports disclosed in accordance with internationa l
accounting standards and Chinese accounting standards during the reporting period.
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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 profit and net assets in financial reports disclosed in accordance with overseas accounting
standards and Chinese accounting standards during the reporting period
VI. Items and amounts of non-recurring profit or loss
applicable □not applicable
Unit: Yuan
Item Amount
Profit or loss from disposal of non-current assets (including the
-620,263,945.46
charged-off portion of the accrued provision for asset impairment)
Government subsidies included in current profit or loss (excluding
government subsidies which are closely related to the business
operations of the Company and consistently granted according to 98,828,011.11
certain standard quota or ration in compliance with national
policies)
Profit or loss from change in fair value of trading financial assets
and trading financial liabilities held, and investment income from
disposal of held-for-trading financial assets, held-for-trading
26,249,584.31
financial liabilities and availa ble-for-sale financial assets, except for
effective hedging transactions related to normal business operations
of the Company
Reversal of impairment provision for receivables subject to separate
4,850,917.74
impairment test
Other non-business revenue and expenditure other than those
-83,644,608.28
described above
Minus: effect of income tax 12,916,715.65
Effect of minority interests (after tax) -127,098,476.85
Total -459,798,279.38
Details of other profit or loss items that conform to the definition of non-recurring profit or loss:
□applicable not applicable
The Company has no other profit or loss items that conform to the definition of non-recurring profit or loss.
Description of non-recurring profit or loss items enumerated in the Explanatory Announcement No. 1 on Information Disclosure
for Companies Offering their Securities to the Public– Non-recurring Profit or Loss classified as recurring profit or loss items
□applicable not applicable
The Company has no non-recurring profit or loss items enumerated in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering their Securities to the Public– Non-recurring Profit or Loss classified as recurring profit or loss
items.
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Section 3 Management Discussion and Analysis
I. Main businesses of the Company during the reporting period
The four main businesses of the Company are feed, white feather poultry, pig farming and food. The four major businesses
are run by different business units, but are highly collaborative with each other and jointly constitute a structure featurin g
diversification of pig and poultry business segments and with synergy between upstream farming and downstream food industry.
The ingredient procurement part of feed business can meet the ingredient needs for feed production in white feather poultry
business and pig farming business. Some hogs from pig farming operations would be delivered to pig slaughter plants of food
business units for slaughtering. White feather poultry business and food business share numerous channels and customer resources
downstream and jointly carry the food brand image of the Company.
(I) Feed business
In the Company’s feed business, there are premix feed, concentrated feed as well as compound feed according to
classification of nutrients, of which premix feed and concentrated feed are both sold to external markets directly an d sold to in-
house compound feed factories. Classification of feed types according to animals, it includes almost all types of feed produc ts such
as poultry feed, pig feed, acquatic feed and ruminant feed. As the Company also has white feather poultry business and pig
farming business downstream, poultry feed and pig feed produced by the Company are supplied to downstream contract farmer
households and in-house breeding farms for their use in addition to sales to external markets. Aquatic feed and ruminant feed
produced by the Company are all sold to external markets.
The Company’s feed business has been the largest for many years in the domestic feed industry. In the first half of 2022, the
Company’s internal and external feed sales totaled 13.34 million t ons, accounting for about 10% of the national total, of which
poultry feed amounted to 7.51 million tons, accounting for about 13% of the national total, the largest manufacturer in China ; pig
feed sales totaled 4.79 million tons, accounting for about 8% of the national total, and aquatic feed sales totaled 0.73 million tons,
accounting for about 7% of the national total, both ranked among the top three in China; ruminant feed sales total 0.23 million tons,
accounting for about 3% of the national total, also ranked among the top in China.
The Company strengthens its product power, purchasing power, productivity and service ability continuously, by launching
biological environment-friendly feed and antibiotic-free feed, eliminating the outdated capacities, and building high-output
benchmark plants. The Company also actively pursues extension of industry chain and explores transformation and upgrading of
its business model. On one hand, the Company makes full use of downstream industry chain foundation deployed in the past,
actively develops integrated projects of feed–breeding-slaughtering, actively invests in and acquires projects related to food
business, and steadily promotes its transformation from a sole feed manufacturer 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, sheep flourishing) to provide technical and financial services to fa rmer households.
It established breeding training management companies or breeding service companies to facilitate the direct engagement with
large farms or farmers. It also developed guarantee business to promote the development of feed business.
(II) White feather poultry business
The Company’s breeder bird propagation business extends to upstream operations differently for breeding duck and breeding
chicken. In the field of breeding ducks, the Company deeply participated in breeding of high intergenerational fine stock and is
China’s 2nd largest supplier of parental generation baby ducks and the third largest supplier of commercial generation baby ducks
in China, especially in the field of breeding duck propagation， the Company cooperated with Chinese Academy of Agricultura l
Sciences, selected and bred the “Zhongxin” Beijing Duck in view of the characteristics of domestic consumption of ducks. The
Company’s commercial generation baby ducks are mainly used for commercial generation breeding of its own downstream
operations, with a limited number of baby ducks sold externally. In the field of breeding chicken, the Company’s extension to
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upstream is relatively short, mainly involving purchasing parental baby chicken from other specialized breeding chicken
companies for production of commercial generation baby chicken. Part of baby chickens of the Company are sold to other vendors,
and the other part are used for its downstream commercial generation breeding.
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 allow.
The ownership of commercial generation chickens and ducks in the outsourced breeding model and in-house integrated breeding
model belongs to the Company and the chicks and ducks produced in these two models are included in the Company’s production
and sales volume of poultry breeding. The total quantity of commercial generation chicken and ducks bred in the aforesaid two
models has exceeded 400 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 terms of poultry slaughter, the Company would first slaughter the aforesaid 400 million commercial-generation chicken
and ducks outsourced from contract breeders and bred in-house in an integrated manner, as well as those commercial generation
ducks purchased from farmer households as contracted under the traditional contract breeding model. In addition, in some regions
where poultry slaughtering capacities are abundant, the Company would also directly purchase some commercial generation
chicken and ducks from non-contracted farm households on markets directly. With the aforesaid three channels for collection of
chicken and ducks, the Company slaughtered over 700 million birds in each of the past years and produced nearly 2 million tons of
poultry meat each year, ranked first in the industry for many years in a row. The “Liuhe” branded poultry meat was the designated
poultry meat for Shanghai World Expo 2010 and the Qingdao Summit of Shanghai Cooperation Organization 2018, enjoying a
strong brand influence. Due to the large production and sales volume, poultry products of the Company are mainly sold at
wholesale market, the traditional channel, which can help digest the enormous yields upstream, but is detrimental to establishing
the brand image and gaining a larger value-add for the poultry meat products of the Company in the long run. Therefore, the
Company has been 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, and promoting the channel upgrading.
(III) Pig farming business
The Company started to greatly expand its pig farming business in 2016. In 2019-2020, in the wake of the ASF outbreak, the
Company invested heavily in pig farming business in response to the national calling for stabilizing production and ensuring
supply, and rapidly increased the pig farming capacity and hog sales. By the end of 2021, the Company realized and reserved a
capacity of over 1.90 million breeding pigs based on number of farrowing beds and in-house fattening capacities of over 7 million
pigs and live hog sa les of 9.97 million pigs throughout the year, and is recognized as one of 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 a dual-system breeding pig architecture centered on
Hypor external three-way cross and PIC five-way cross to select pig breeds suitable for regional markets according to the
differences between the markets in north and south China. In the rapid development of past few years, the Company actively
established its presence in regions where it enjoys comprehensive advantages to build breeding pig farms for piglet productio n.
Among sow farms normally run by the Company, 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 farming was about 1:4, with year-end breeding stock ratio of about 2:3. With
improving full load rate and improvement in in-house fattening personnel of existing in-house fattening farms, the ratio of
integrated in-house farming will gradually increase in the future and the Company will realize a business presence of balanced
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development between integrated in-house farming and “company+ farmer household” cooperative farming. in regions where the
comprehensive advantages are not obvious but with Company’s feed business presence; or the Company has plans to build
breeding pig farms but hopes to have suitable cooperative fattening farms that match its fattening requirements once the breeding
pig farms commissioned, the Company purchased piglets from other large pig farming companies or specialized breeding pig
companies for a period of time, while at the same time adopting cooperative farming model, thus achieving collaborative
development of its feed business and pig farming business or early engagement of cooperative farmers. But with the Company’s
expansion and optimization of its breeding pig farms in many regions, as well as rapid decline of the industry cycle, the Company
ceased to purchase piglets from other vendors in the first half of 2021. After that piglets have been supplied primarily from within
the Company.
2. Division of duties in cooperative farming
In the cooperative farming, the Company and farmers respectively invest different production elements, 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 o n fattening farms. In terms of division of
duties, the Company is responsible for piglet supply, feed supply, epidemic disease prevention and treatment, breeding technology
guidance, collection and sales, while farmers are responsible for daily feeding, cleaning and bio-safety control. 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 opportunity profit. The farmers’ returns are relatively 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 period became longer in recent years, in case of the aforesaid breaches,
farmers will bear huge risk of bad faith, and the Company will retain the breeding deposit and sue the farmers for breach of
contract. Therefore, such breaches are becoming less frequent.
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
collection 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 e ach 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
As of the end of the first half of 2022, there were 2,077 farmers with pigs fattening in cooperation with the Company, up 12%
from the end of 2021, and the average size of farmers increased by 14% from the end of 2021, indicating co-increase in volume
and efficiency, and a win-win situation for both farmers and the Company.
By structure of scale of livestock on hand, the number of farmers each with less than 1000 pigs has decreased by 5 percentage
points from the end of 2021, accounting for 12%; farmers each with 1001-3000 pigs accounted for about 60%, remain relatively
stable; farmers each with 3001 to more than 5000 pigs accounted for about 18%, 3 percentage points higher from the end of 2021;
and farmers each with more than 5001 pigs accounted for 10%, up 2 percentage points from the end of 2021.
By structure 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 10%, 3 percentage points less from the end of 2021; farmers in t he
east and south central region accounted for 24% and 34% respectively, remain relatively stable; farmers in the southwest region
accounted for about 19%, up 3 percentage points from the end of 2021; farmers in the northwest region accounted for about 12% ,
down 2 percentage points from the end of 2021.
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(IV) Food business
The Company’s food business includes pig slaughtering, deep processing of meat products and central kitchen prepared
dishes, etc. For its pig slaughtering business, as all of the five slaughtering plants have large capacity, they would purcha se hogs
from other sources on markets in addition to purchasing marketable hogs from the Company’s pig farms for slaughtering; pork
from slaughtered hogs would be partially transformed into processed meat products in addition to direct external sales. In the meat
processing and central kitchen prepared dish businesses of the Company, raw meats used are substantially sourced from pig
slaughtering or poultry slaughtering products inside the organization.
The Company's food business has a certain influence in China as a whole, and is in the leading echelon in specific regions,
such as Sichuan, Liaoning, Hebei and other places. The Company's “Kinghey” branded pork was designated to be supplied to 2008
Beijing Olympic Games, and “Meihao” branded pork products enjoy powerful market position in Sichuan. The central kitchen
business is one of the largest in Beijing market. Over the past years, the Company entered the market of hotpot catering by starting
with deep fried pork slices and other products. In terms of supply of food ingredients for hotpot restaurant chains, the Company
has gradually formed brand influence and channel outreach, covering all Top 100 Sichuan-styled hotpot restaurant chain brands. In
general, 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 China, the food business also faces the
challenge of cross-regional market development. In next few years, the Company will also make full use of the existing capacity
and channels of white feather poultry, combining with the pig farming business, to drive its food business to play a larger role in
domestic market and help the Company's food brand gradually grow from a local brand to a national one.
The Company is required to comply with disclosure requirements set forth in the Self-regulatory Guideline No.3 of Shenzhen
Stock Exchange for Listed Companies—Industry Information Disclosure with respect to livestock, poultry and aquaculture related
businesses.
II. Analysis of core competitiveness
(I) The Company’s core competitiveness in the feed business:
1. Strong bargaining power and resource integration capabilities brought by the largest scale. Scale is one of the most
essential competitive factors in the feed industry. The Company's feed output rank the first in China, and feed production and sales
now cover 29 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 business giants and large channels
of the same magnitude, leading companies in other related industries and local governments at all levels, thus leveraging the strong
bargaining power by virtue of its scale advantage to conduct cooperation of various forms and exploit its advantages of resource
integration.
2. Leading raw materials cost brought by supply chain management capabilities. In recent years, with violent fluctuations of
raw materials prices and record high corn prices, the Company set up a supply chain management department at the headquarters
level, with each purchasing team staffed with regional BP focused on corresponding categories and tasked with regional market
research, procurement business and operational support. Through centralized management of feed ingredient purchasing business
and logistics business across the industry chain and by releasing resource integration capabilities brought by scale advantage, the
Company signed strategic partnership agreements with many leading players and the Company was extended credit loans worth
billions of RMB. Together with specialized industry research and market insight capabilities, the Company created a core
competitiveness featuring leading ingredient cost and efficient operation.
3. Established customer service capabilities and optimized supporting services across the industry chain. The Company
actively matches its customers with baby animals for farming and animal healthcare resources in each species, with several anima l
healthcare testing labs built in place to provide support to customers in terms of bio-safety and comprehensive animal nutrition. In
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terms of financing, relying on its powerful platform, the Company actively matches its customers with various financing products,
effectively alleviating financial stresses of farmers and providing customers with more facilities while keeping risks controllable.
4. Continuously improved research and development capabilities. Along with development of breeding technologies,
customers’ requirements for feed become more demanding. With a well-established R&D system, the Company conducts detailed
research and development considering regional breeding differences and growth-phase nutritional differences of all varieties,
continuously iterating and launching products that meet differentiated needs of breeding customers. Meanwhile, the Company
continued researching alternative ingredient technologies and optimizing its formula costs to increase profitability.
(II) The Company's core competitiveness in the white feather poultry business
1. In terms of breeding of breeding poultry, the Company has long been utilizing objective management of three key
indicators: laying rate, fertility rate and healthy fertility rate, and has formed systematic technology and management capabilities,
enjoying considerable advantages in indicators such as healthy babies per bird, baby bird cost and baby bird quality. In terms of
breeding of breeder ducks, the Company continued genetic improvement and pilot test of the “Zhongxin” Beijing duck developed
by itself in recent years in a way that further expanded its adoption regions, thus enhancing the Company’s competitiveness in
breeding duck business.
2. In terms of cost control, the Company persistently improves feed cost of meat production, flexibly adjusts contract
breeding cost and effectively enhances comprehens ive product yield from feed side (ingredient quality, purchase, nutritiona l
formula and production cost), breeding side (breeding capability and bio-safety) to slaughtering side (standardized workshops and
lean production), allowing itself to stay ahead of its major peers in north China in white feather broiler business and ahead of its
major peers nationwide in white feather duck business.
3. In terms of by-products, the Company has strong transformation capabilities especially with respect to duck by-products,
which in return enhances product premium. With a transformation rate of nearly 100% for duck intestines, the Company’s duck
intestine sales exceeded 150 million Yuan in the first half of 2022. Duck blood targets high-end market. There are two types of
duck blood, high-temperature duck blood and fresh duck blood. Fresh duck blood has been consistently supplied directly to large
hotpot restaurant chains such as Haidilao. For duck feather, as duck slaughtering volume of the Company accounting for about 10%
of the national total, the Company can guarantee sufficient supply of duck feather as a raw material. The Company also started to
increase the ratio of duck feather drying and processing in-house in 2021. The Company also saw increased transformation rates
and profit margins of other by-products such as meat and bone meal in recent years.
(III) The Company's core competitiveness in pig farming business
1. Production capacity portfolio that is generally balanced and close to main selling regions. According to division of regio ns
by the Ministry of Agriculture for ASF containment, the Company’s pig farming capacities are distributed in five regions in a
rather balanced manner, with each operating regions focused on 1 or 2 provinces, all these provinces being or surrounding core
areas of population, economy and consumption in respective regions. As of the end of 2021, the Company’s capacity in the north
region accounts for 27% of its total capacity, focused on Liaoning and Hebei; its capacity in the east region accounts for 35%,
focused on Shandong; its capacity in the central south region accounts for 17%, focused on Guangxi; its capacity in the southwest
region accounts for 10%, focused on Sichuan; and its capacity in the northwest region accounts for 9%, focused on Shaanxi. Its
combined capacity in east, central south and southwest regions accounts for 63%. The balanced capacity portfolio can help the
Company decentralize risks and avoid considerable losses caused to the Company as a whole due to epidemic, natural disasters
and extreme market conditions in particular regions during particular periods.
2. A pyramid system has been gradually optimized, supported by proprietary breeding algorithms to construct core population
competitiveness. The Company constructed grandparental generation lines and established grandparental pig populations for
nearly 80% of its operating pig farms according to the pyramid configuration requirements, while other independent parental pig
farms also have independent grandparental pig farms within the system responsible for supply of standby parental pigs. The
gradual ramp-up of these grandparental generation lines and gradual opt imization of the pyramid system will help these pig farms
achieve stable full-load operation in the future. For breeding pigs from core populations such as grandparental pigs and GGP pigs,
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the Company developed proprietary breeding and production management software called HUGE-HOPE. This software can
achieve breeding value computation of 6 growth traits + 6 breeding traits. Comparing with traditional breeding software, HUGE-
HOPE incorporates several more important economic traits. It has better computing capacity and computing efficiency than
commercially available breeding value computing software at present. It is capable of providing automated selective breeding
solutions to the Company in the future, thus laying a solid foundation for fully networked joint breeding of core breeding pig
populations of the Company.
3. Collaborating with feed business to utilize the advantages of jointly purchasing formulas. The feed production and nutrition
formulation of its pig farming business, although managed independently, maintain close collaboration with the Company’s feed
business. First of all, for purchase of feed ingredients, the pig business feed supply department maintains good division of work
and communication with the supply chain management department at the headquarters level, forming a purchasing model of HQ
centralized purchasing + regional centralized purchasing. Bulk and key ingredients are purchased by the HQ’s supply chain
management department in a centralized manner, while subsidiaries of the pig business unit are responsible for locally-produced
ingredients. In terms of nutrition formulation, the pig business nutrition department also maintains close exchanges with R&D and
product teams of the pig feed business unit to learn from innovative formulation practices emerging in external markets and
continuously improves the competitiveness of feed operations.
4. The Company actively explores and constructs a “digitally intelligent farming” system across the industry chain, in order to
increase pig farming efficiency and reduce costs by digitalizing all business processes. In 2021, the Company started a pilot
program and vigorously advanced the construction of planning and operation control system for managing the breeding operation s
in three parts: farming site part (mainly including farming tasks, environmental control management, video surveillance and site
patrolling management), pig farm management part (exception alert, task reminder, feed management, drug management and
death and culling compliance), and corporate control part (real-time monitoring and alert, end-to-end tracing, plan management,
data analysis and performance rating). The dynamic control of the farming process helps achieve precise positioning of pigs and
unification of standards across production processes. The system was launched in mid-2021 and completed the promotion
coverage of all breeding lines in May 2022; as the next step, the system will be developed and tested gradually for piglets,
fattening pigs and other operations. In the future, the Company will continue to vigorously carry out digital construction guided by
“integration of industry and data”, namely, integration of industry and data, making critical equipment intelligent, making a ll
business scenarios data-based, visualizing all data online and making end-to-end management proactive, to help the pig farming
business to build a more professional, more efficient and more sophisticated full life cycle operation system by digitalizing the
system.
(IV) The Company's core competitiveness in the food business
1. Presence and interaction across the industry chain: the Company has established a complete presence across the industry
chain for its farming and animal food products, ranging from feed, breeding, farming, slaughtering to food processing, downstream
sales channels and branding. The whole industry chain provides a foundation for the ability to trace from field to dining tab le, and
a foundation for safer, higher-end food ingredients. The whole industry chain model can also customize farming of distinctive pig
populations such as black pigs and antibiotic-fee pigs at the upstream part of the industry chain according to downstream different
consumer needs; the farming-slaughtering interaction in the whole industry chain model can strengthen comprehensive utilization
of such parts as head, hoof and tail to help maximizing the value of a single pig.
2. Professional service capabilities focused on catering customers: the Company has now covered all top 100 hotpot chain
brands nationwide, established cooperation with customers on multiple dimensions such as branding, product and marketing and
provides customers with one-stop, customized solutions by virtue of a rich product mix from fresh food ingredients to prepared
dishes and from pork to poultry, which also allowed the team to accumulate a large wealth of experience and service capabilities.
Currently, these capabilities are being duplicated from the hotpot market segment to other catering market segments such as group
meal and BBQ, creating a greater value.
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3. Product system and matrix: the Company has successfully incubated the 1 billion Yuan item (deep fried pork slices), and
accumulated successful experience of making something out of nothing, which can be duplicated to other new and existing
products in the future. In addition, the Company also formed a number of 500 million Yuan level, 100 million Yuan level and
reserve items, involving many product forms such as sausage, bacon, beef slice and meat ball, which can ade quately meet
customer needs of different types.
4. Brands such as “Meihao” and “Kinghey” have been highly recognized by industry customers and partners for multi-year
legacy. As a pork product brand, “Meihao” enjoys a strong market position and profound recognition in Sichuan, and “Kinghey”
was a designated supplier for the 2008 Beijing Olympic Games. In 2021, the Company also launched “Soulcook”, a high-end meat
brand featuring “antibiotic-free” distinctive meat products. Along with expansion of its food business to larger market segments
nation wide, and the increased ratio of packaged products, these food brands are expected to grow from local brands to nationa l
ones, gain greater exposure and unleash greater brand influence.
(V) Anti-risk capabilities brought by integrated presence across the industry chain and overall credibility
The Company’s integrated presence across the industry chain from upstream feed to pig and poultry farming at the middle
stream and then to downstream slaughtering and processing can help the Company decentralize operational pressure and hedge
against risks of market to a certain extent. For example, when the pig or poultry price is low, it often means that the breed ing scale
is rather large. It can bring greater sales volume to feeds upstream and also drive down the ingredient prices for processed foods
downstream. The high-turnover characteristics of feed business can also provide the Company with stable cash flow supply.
Meanwhile, the Company has been running robustly over the past 40 years since its founding, enjoying good social reputation
and word of mouth. Currently well-funded, the Company now has credits worth over 100 billion Yuan granted by various financia l
institutions and enjoys sustained levels of support from numerous large financial institutions. With an overall credit utilization of
less than 70%, there are still large rooms for drawings. The Company has long been maintaining high levels of credit ratings. The
high corporate credibility, market recognition and strong financing capacity provide the Company stable, low-cost refinancing
support during the trough periods of the industry, playing an anchoring role for the Company to achieve stable development
through cycles.
III. Analysis of Main Businesses
Overview
In 2022, the domestic agriculture and animal husbandry industry is at a turning point in the cycle. In general, pig and poultry
farming business is gradually getting better, and feed and food business are under pressure. For the pig industry, the price of pigs
remained at a low level since last year for most of the first half of the year. In addition, the international geopolitical c onflict
aggravated the rise in the price of feed ingredients, and attenuated ASF broke out again in many northern provinces, making the
whole industry continue to bear greater operating pressure, and furthering the reduction of hog production capacity. According to
the statistics of the Ministry of Agriculture, the domestic breeding sow stock at the end of April and the hog stock at the end of the
first quarter dropped to the lowest point in nearly a year, resulting a relatively significant rise of pig price in June. Due to the
gradual reduction of the production capacity caused by long-term downturn in the market, coupled with the outbreak of avian
influenza in the United States affecting the introduction of white feather broiler abroad, the poultry industry price took the lead in
Q2 to appear upward trend. However, the historic low number of pigs and poultry stocks indicates that the breeding business is
gradually improving, and it also means that the feed industry has entered a cycle stage with the greatest pressure. In the first half of
the year, the total output of industrial feed decreased by 4.3% year-on-year. Except for aquatic feed, which still maintained
production growth due to consumption upgrades, the output of pig feeds and poultry feeds decreased significantly. In addition , the
first quarter coincided with the lowest price of pigs and poultry in the breeding sector, wh ile the price of feed ingredients rose
sharply due to international geopolitical conflicts, and it was difficult for the feed sector to pass on the rising costs to the
downstream breeding sector, which further affected the profits of the feed industry. On the food side, the gradually rising price of
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pigs and poultry increased the acquisition cost of slaughtering and the raw material cost for deep food processing. However, in the
first half of the year, the COVID-19 epidemic in many parts of China also affected the recovery of consumption, which brought
certain pressure to the food industry. . In terms of policies, since the hog production capacity, which is most concerned by the
whole society, has gradually entered a relatively balanced normal range after experiencing the ups and downs in the past two years,
various policies and measures also tend to be neutral. The No. 1 document of the Central Committee in early 2022 emphasized
“stabilizing the long-term support policies for hog production, stabilizing basic production capacity, and preventing dramatic ups
and downs in production”, which will also guide agricultural and animal husbandry enterprises to focus more on internal and
enhance their core competitiveness.
On the whole, the Company has passed 2021, the most challenging year of operation. Although different businesses have
different levels of profit or loss due to the different stages of the industry cycle the internal production and operation efficiency is
continuously improving. To further promote and consolidate the improvement of the operation and management level at the
business level, the Company started the function transformation of the headquarters in early 2022, committing to promoting the
transformation of the headquarters from financial and investment management and control to comprehensive operation and key
operation, so as to give better play to the six core functions, namely, cultural guidance, strategic promotion, operation tra ction,
operation management empowerment, risk control and resource allocation In terms of capital operation, the Company launched a
private placement of no more than 4.5 billion Yuan for major shareholders, which has been approved by CSRC, and will help the
Company reduce its debt ratio and meet the new stage of growth in a healthier state. In addition, the Company also launched a new
round of restricted stock incentive plan and employee stock ownership plan. These two incentive plans involve shares that acc ount
for 1.84% of the total stock capital of the Company, covering than 2,000 people, ranging from senior executives to frontline pig
farm managers or frontline unit general managers of other businesses. The breadth, depth and strength of incentives are
unprecedented in the history of the Company, which further improves team cohesion and provides a solid guarantee for the steady
and sustainable development of the Company in the following years. During the reporting period, the Company reported business
revenue of 62.33 billion Yuan, an increase of 811 million Yuan or 1.32% year-on-year; and net profit attributable to shareholders
of the listed company of -4.140 billion Yuan, a decrease of 725 million Yuan or 21.22% year-on-year; including net profit
attributable to shareholders of the listed company in Q2 of -1.261 billion Yuan, a decrease of 1.619 billion Yuan or 56.22% from
Q1. With the recovery of the market in the second half of the year and the further improvement of the Company's production and
operation in all aspects, the Company's performance in the second half of the year will usher in a significant improvement.
(I) Feed business
The feed business remains one of the core pillars of the Company. In the first half of 2022, under the background of declining
demand and profit pressure in the feed industry as a whole, the Company continued to put efforts in comprehensive services,
heavy customer development, formula research and development, organizational optimization and other aspects to meet the
challenges at the bottom of the feed cycle.
1. Service strengthened, key customers maintained, and market share stabilized: at the bottom of the pig cycle, the Company
continued to use various financing products such as “Haoyangbao” to provide financing support for downstream farms and
farmers, and help farmers to contact pig dealers or third-party trading platforms to sell pigs. In the first half of 2022, group and
scale customers accounted for 35% of the Company's pig feed export sales, 8 percentage points higher than that in the whole year
of 2021. Through firm support and service, the Company worked hand in hand with breeding customers to overcome difficulties,
stabilized the market share of pig feed, and laid a solid foundation for the next cycle of growth.
2. Formulation system launched and base improved to power conversion: Hongtong NHF system developed by the Company
with independent intellectual property rights fully launched in the Company's feed system in the first half of 2022, realizing online
formula, online nutritionist, online connection between formula and production control, and online dynamic adjustment. In the first
half of the year, when the price of feed ingredients rose sharply due to international geopolitical conflicts, the system enhanced the
Company's strain capacity in feed formula adjustment. In the first half of the year, the Company also further improved the
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establishment of the two-level R&D base to help the empirical testing and implementation of new feed technology R&D results,
and promote the iterative upgrading of technology.
3. Organization optimized according to local conditions: in south China region, where the market size is relatively large wit h
a relatively low market share, but the growth momentum was, is and will be good in recent years and subsequent years, the
Company subdivided the organization. Following the subdivision of the original Guangdong new zone into 4 areas in 2021,
Guangxi new zone was subdivided into 2 areas in the first half of 2022 to activate the team and strive for greater growth. In
Shandong region where the market scale is large with a high market share and a relatively dense and saturated market, the
Company reintegrated 6 clusters into 5 areas in the first half of the year to better leverage synergies and to reduce management
costs.
During the reporting period, the Company sold 13.34 million tons of various feed products, 0.21 million tons less, or 2%
down year-on-year; 9.85 million tons of feeds were sold externally, 2% down year-on-year (comparing to a year-on-year down of
4.3% in national total feed output). Among them, 4.79 million tons of pig feed were sold, 3% up year-on-year, and external sales
of pig feed amounted to 2.64 million tons, flat year-on-year (comparing to 6.8% down year-on-year in national pig feed output);
7.51 million tons of poultry feed were sold, 6% down year-on-year, and external sales of poultry feed amounted to 6.25 million
tons, 5% down year-on-year (comparing to 6% down year-on-year in national poultry feed output); 0.73 million tons of aquatic
feed were sold, 14% up year-on-year (comparing to 21% up year-on-year in national aquatic feed output); the Company reported
business revenue of 36.037 billion Yuan, 3.211 billion Yuan more or 9.78% up year-on-year.
(II) White feather poultry business
The white feather 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 food business. In the first half of 2022, facing the industry trend of gradually
recovering from the bottom of the cycle, the Company adhered to lean production internally, continuously improved the
production efficiency of all links, strengthened the cost control, and strengthened the market development externally by rely ing on
key customer channels and superior items.
1. Continued to improve efficiency and intensify cost control: the Company continued to strengthen control over the business
process from its feed side (ingredient quality, purchase, nutritional formula and production cost), breeding side (breeding c apacity
and bio-safety) to slaughtering side (standardized workshops and lean production), flexibly regulated the cost of contract delivery,
increased the European index of commercial generation breeding, continued to optimize the cost of feed meat production , and
effectively improved the comprehensive output of products, achieving the leading position in the white feather broiler busine ss
ahead of major peers in the north, and the leading position in the white-feather duck business ahead of major peers nationwide.
2. Doubled sales of key customers: in the context of sluggish downstream consumption, acquisition of key customers
becomes more important for stabilizing the basic market share. As of the end of the first half of 2022, the number of key cus tomers
of white feather poultry business increased to more than 100, nearly doubling from the end of 2021; the total sales volume of ke y
customers in the first half of the year exceeded 105,000 tons, reaching the level for the whole of last year.
3. 100 million Yuan items hit a new high: the three major 100 million Yuan items of the Company's white feather poultry
business formed in 2021 maintained growth in the first half of 2022. In raw food sector, the sales of golden duck palm in the first
half of the year exceeded 100 million Yuan; in poultry by-product segment, with the breakthrough of hot pot barbecue segment,
the sales of duck intestines in the first half of the year reached 155 million Yuan, of which the hot pot barbecue segment
contributed about 45%; in cooked food sector, the sales of healthy chicken reached 40 million Yuan in the first half of the year,
laying a good foundation for the annual breakthrough of 100 million Yuan again.
During the reporting period, the Company sold a total of 278.40 million baby chicks and baby ducks, 14.08 million more or
5.3% up year-on-year, 195.84 million commercial chicks and ducks were sold, 23.70 million less or 10.8% down year-on-year;
322.71 million chicks and ducks were slaughtered, 28.92 million less or 8.2% down year-on-year; 801,800 tons of chicken and
duck meats were sold, 62,000 tons less or 7.2% down year-on-year; the Company reported business revenue of 8.29 billion Yuan,
919 million Yuan less or 9.98% down year-on-year.
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(III) Pig farming business
The pig farming business is the core business that has the greatest impact to the Company. From the external situation,
although affected by low pig price, rising feed ingredient price and re-emergence of attenuated ASF in the first half of the year, the
most difficult stage has been passed, since the Company's pig farming business has experienced more than a year of sharpening
after its shift to a stable operation stage in 2021 with all aspects of production indicators, final marketing costs and mana gement
capabilities in all links improved or enhanced to varying degrees. With the subsequent recovery of the market, the Company will
gradually realize better growth and performance through further improvement of efficiency, cost and sales volume.
1. Iterated the prevention measures taking into account treatment and production resumption. Since the beginning of 2021,
ASF entered a new stage dominated by the attenuated strain or a hybrid of attenuated and wild strains, similar to the Omicron
stage of COVID-19, bringing new requirements for prevention and control of the epidemic and subsequent disposal. Whether it is
for the whole listed company or for a specific farm line, successful prevention of ASF is the most important prerequisite for
achieving good breeding performance and reducing breeding costs. Based on systematic summarization of experiences,the
Company launched “ASF purification and normal production program” in early 2022, summarizing and refining five key points
for ASF prevention under the new situation: “early detection, accurate epidemiological survey, good plan, strict on-site control and
fast resumption of production” ; and defining a new field treatment scheme against attenuated ASF, namely “whole population
detection + precise elimination” based on “whole population blood collection within 24 hours + paired whole population detection
within 7 days”. Under the severe challenge of the re-emergence of the attenuated ASF at the beginning of the year, the Company
also verified in a timely manner that it is feasible to resume breeding during the period of positive results, provided with sufficient
personnel and material preparations and strict compliance with relevant standard operating procedures, which greatly reduced the
huge loss caused by long-term suspension of production. After upgrading the prevention and control measures, various effects
gradually emerged: in terms of treatment efficiency, in the first half of this year, the average number of days for red-to-yellow turn
fell by 35 days compared with the same period last year, and the retention rate of pigs in the epidemic field increased by 20%. The
number of dead pigs caused by ASF and the proportion of ASF deaths in total deaths decreased significantly year-on-year. In
terms of relevant production efficiency, the non-productive days (NPD) of sows in the second quarter decreased by more than 60%
year-on-year, and the 7-day weaning rate increased by more than 20% year-on-year, which greatly improved the production
efficiency of sows and helped reduce seedling cost.
2. Production indicators of breeding pigs improved first, and the cost in the South region dropped significantly. With the
strong support of a substantial improvement in the level of ASF prevention and production resumption, the Company's production,
healthcare, nutrition and other lines jointly improved the production management capabilities of breeding pig side, drove
continuous balanced and full-load production of sow farms, and made various production indicators improved significantly and
reduced weaning costs. For example, in the first half of the year, the 35-day conception rate increased by 27 percentage points
year-on-year, the breeding delivery rate increased by 11 percentage points year-on-year, the average number of live piglets per
litter increased by 1.4 year-on-year, and the average number of weaned piglets per litter increased by 1.3% year-on-year. At the
end of the first half of the year, PSY reached 21.5, the 35-day conception rate was close to 91%, the conception and delivery rate
was close to 86%, the average number of live piglets per litter was 11.4, the average number of weaned piglets per litter reached
10.4, the cost of weaning dropped to 434 Yuan per piglet (about 100 Yuan per piglet from the average level in Q1, indicating that
it will contribute nearly 1 Yuan/kg of cost reduction space for the corresponding batch of hogs at the end of the year), and the cost
of hog breeding dropped to 17.5 Yuan/kg. In the South region where was less affected by ASF, the cost of breeding in some
operating regions has been dropped to 16 Yuan/kg for the first time. However, there is still progress space for relevant indicators
in the Company's fattening process. From the end of last year to the first half of this year, the Company successively formed
special self-fattening management department and stocking management department at the headquarters level, and recruited
experienced cadres from leading enterprises in the industry to take charge. In the second half of the year,the Company will mainly
cultivate and improve the system capacity through the combination of combat training in self-fattening segment, and will carry out
special projects to support latecomer stocking department in stocking segment to reduce costs in the link of fattening.
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3. Organizational structure optimized to improve operational efficiency. First of all, at the headquarters level, the Company
continued to strengthen the middle office to implement unified standards and systems, and to promote the rapid replication an d
promotion of best practices inside the Company. In the first half of 2022, the Company re-optimized and adjusted the breeding pig
production system into core group management department and breeding group management department; in terms of the fattening
system, since the establishment of the self-fattening management department at the end of last year, established the stocking
management department in the first half of the year, comprehensively aligning with the advanced to learn industry experience and
continuously improve the professional ability in fattening; and separated the engineering operation department from the industria l
development department, responsible for operation and maintenance as well as automation and intelligent upgrades of equipmen t
in pig farms. The number of professional cadres of the pig farming business in middle office also increased to 260 from nearly 200
at the beginning of the year. Second, at the level of vertical teams, the middle level of the northern two vertical teams covering a
small number of provinces with relatively de nse production units was streamlined on one hand, to enable the direct management of
clusters by the vertical team and to strengthen the connection between the upper and lower ranks; on the other hand, according to
changes in the internal and external environment, the management scope of each vertical team was optimized and adjusted, and the
two operating regions under the vertical team in the north, which was more affected by the epidemic, were adjusted to the ver tical
team in the south, which was less affected by the epidemic. After the adjustment, the various indicators and costs of these two
operating regions have been significantly improved. Last, at the level of frontline business units, indicators in all aspects of most
operating regions or clusters had steady improvements in the past year and a half, but there are still individual frontline units that
failed to keep up with the pace of overall improvement and become the weak points of their vertical team or the entire company. In
this regard, the Company actively carried out special actions of “investigating the advanced + helping the latecomer” and “locating
the weak point”, focusing on overcoming difficulties of the weak units and weak links to improve the overall operation level.
4. Adhered to digital transformation for intelligent farming. The pilot planning and operation management system launched
by the Company in mid-2021 completed the promotion and coverage of all parental generation farms in May this year, and
gradually developed and tested around piglet circulation, reserve introduction and other pig circulation links, covering main
production events from breeding to weaning. In the fattening process, the Company focused on promoting the death compliance
management program in the first half of the year, and reduced the fraud risk of dead pigs by picture identification; at the same time,
the feed budget dynamic control program is piloted, which has completed the trial in 79 self-fattening farms, and realized
comprehensive and timely control of the situation of feed over budget, significantly reducing the number of over-budget batches
and saved the feed cost.
During the reporting period, the Company sold a total of 641,000 breeding pigs and piglets and 6.2071 million hogs, totaling
6.8482 million pigs, 2.3871 million more or 53.51% up year-on-year; the Company reported business revenue of 7.765 billion
Yuan (slightly less than the accumulated sales revenue indicated in the monthly hog sales briefings due to involvement of sales to
internal slaughterhouses), 2.417 billion Yuan less or 23.74% down year-on-year.
(IV) Food business
Food business is the direction of the Company's long-term transformation and development. In the first half of 2022, facing
the dual pressure from increased cost of raw materials caused by rising price of pigs and poultry and the impact of COVID-19 on
consumption recovery, the food business sector of the Company actively responded to the challenges, promoted the optimization
of the organization and operation mechanism, continued to strengthen the cooperation with white feather poultry business,
achieved expansion in products, regions, channels and other aspects, and increased both sales and profit against the trend.
1. Star items developed steadily, and follow-up product lines grown rapidly: deep fried pork slice, the major star item of the
Company, was continuously optimized in terms of technology, taste, flavor, packaging and other dimensions in the first half of the
year. In the context of sluggish demand in the catering industry in the first half of the year, the Company tried to expand to the
home scene. The sales revenue achieved double-digit growth year-on-year, exceeding 500 million Yuan in half a year, laying a
solid foundation for the annual sales over 1 billion Yuan, and the gross profit margin was further improved, showing the scale
effect. Other than the deep fried pork slice, in addition to the 100 million Yuan items such as meat ball series and beef slice series
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that was formed last year, there is also sausage series with sales revenue exceeding 60 million Yuan in the first half of the year,
which is expected to become a new 100 million Yuan item throughout the year.
2. Linkage of breeding and slaughtering to promote the comprehensive value of the industrial chain : at the beginning of 2022,
Shandong Kinghey Slaughterhouse, located in the key area of pig breeding, was officially put into operation, and initially ac hieved
profitability as the production load rate gradually increased. The commissioning and smooth operation of Shandong Kinghey not
only helped the Company to nearly double the growth of pig slaughtering business, but also further strengthened the “linkage of
breeding and slaughtering” with upstream breeding links. Shandong Kinghey Slaughterhouse reported an internal harvest rate of
90%, and the overall internal harvest rate of the Company's pig slaughtering business also increased to nearly 70%. Compared
with external slaughtering, “linkage of breeding and slaughtering” not only saves related costs, reduce s the loss of value in the
industrial chain, but also has great significance for the construction of various capabilities from food safety, product trac eability to
special pig product development in the future.
3. Anti-epidemic and supply guaranteed to safeguard people's livelihood and enhance brand image: in the first half of the year,
due to the impact of the epidemic, offline channels in Shanghai and other regions were blocked, the Company actively guaranteed
the supply, and made contributions to safeguarding people's livelihood. Through a variety of cooperation modes, such as direct
cold chain supply cooperation with Fresh Life (a brother company of the group), and cooperation with local distributors or
supermarkets, etc., the Company supplied thousands of tons of safe and fresh pork, meat products and other products to home
based consumers, playing a role in promoting the image of “New Hope Liuhe” brand of the Company and “Kinghey” and “Meihao”
brands of the food sector, as well as the development of the relevant regional customer network.
During the reporting period, the Company slaughtered 1.35 million hogs, 650,000 more or 93.6% up year-on-year, and sold
218,000 tons of pork products, 95,000 tons more or 77.2% up year-on-year; sold 129,800 tons of various processed meat products
and prepared dishes, 8,000 tons more or 6.6% up year-on-year; the Company’s food business reported business revenue of 4.913
billion Yuan, 440 million Yuan more or 9.84% up year-on-year.
YoY changes of key financial data
Unit: Yuan
YoY
The same period of the
This reporting period increase or Cause of change
previous year
decrease
Business revenue 62,329,531,076.64 61,518,574,560.67 1.32%
Operating costs 62,063,554,174.37 59,181,012,728.29 4.87%
Selling expenses 877,736,004.72 886,165,806.70 -0.95%
Management expenses 2,431,811,072.08 2,071,241,942.81 17.41%
Financial expenses 760,981,877.24 753,564,042.97 0.98%
Mainly due to decline in the
Income tax expense 140,757,923.12 255,813,436.08 -44.98% Company's profit, reducing the
income tax expense.
R&D input 151,257,614.79 147,076,799.89 2.84%
Mainly due to the bill settlement
Net cash flows from adopted by the Company, which
-1,133,527,154.46 -4,596,606,685.74 75.34%
operating activities affected the increase of net cash
flows from operating activities
Mainly due to YoY decrease of
Net cash flows from the Company’s net input of
-4,266,170,951.69 -10,459,350,214.73 59.21%
investing activities long-term assets in the pig
business in this period
Mainly due to YoY increase in
Net cash flows from
1,848,149,801.11 17,916,417,332.72 -89.68% borrowings acquired by the
financing activities
Company
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Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Mainly due to YoY increase in
Net increase in cash and borrowings acquired by the
-3,600,471,868.10 2,839,612,152.66 -226.79%
cash equivalents Company and decrease of long-
term input in the pig business.
Mainly due to changes in fair
Gains from variation in
-1,254,312.12 -11,086,791.11 88.69% value of financial products of
fair value
the Company.
Mainly due to increase in
Asset impairment loss -1,328,087,107.41 -1,002,396,508.13 -32.49% provision for impairment loss of
consumptive biological assets.
Mainly affected by the income
Income from asset from disposal of fixed assets and
8,121,268.04 22,936,727.98 -64.59%
disposal productive biological assets of
the Company
Mainly due to decrease in
destruction, scrapping and
Non-business expenditure 759,373,021.68 1,330,740,961.06 -42.94% interim loss of productive
biological assets of the
Company.
Material changes in composition or source of profits of the Company in the reporting period
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 previous year
Proportion YoY increase or
in Proportion in decrease
Amount Amount
business business revenue
revenue
Total operating
62,329,531,076.64 100% 61,518,574,560.67 100% 1.32%
revenue
By industry
Feeds 36,037,156,488.71 57.82% 32,826,596,340.18 53.36% 9.78%
Poultry business 8,289,654,758.78 13.30% 9,208,733,591.23 14.97% -9.98%
Pig business 7,764,687,577.91 12.46% 10,181,674,908.62 16.55% -23.74%
Food 4,913,494,290.92 7.88% 4,473,503,994.85 7.27% 9.84%
Commerce and
4,951,456,818.63 7.94% 4,509,825,357.68 7.33% 9.79%
trade
Others 373,081,141.69 0.60% 318,240,368.11 0.52% 17.23%
By product
Feeds 36,037,156,488.71 57.82% 32,826,596,340.18 53.36% 9.78%
Poultry business 8,289,654,758.78 13.30% 9,208,733,591.23 14.97% -9.98%
Pig business 7,764,687,577.91 12.46% 10,181,674,908.62 16.55% -23.74%
Food 4,913,494,290.92 7.88% 4,473,503,994.85 7.27% 9.84%
Commerce and
4,951,456,818.63 7.94% 4,509,825,357.68 7.33% 9.79%
trade
Others 373,081,141.69 0.60% 318,240,368.11 0.52% 17.23%
By region
Overseas 7,803,392,389.02 12.52% 6,681,133,536.17 10.86% 16.80%
Domestic 54,526,138,687.62 87.48% 54,837,441,024.50 89.14% -0.57%
Industries, products or regions that account for more than 10% of the Company’s business revenue or operating profits
applicable □not applicable
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Unit: Yuan
Increase or
Increase or Increase or
decrease in
decrease in decrease in
business
Gross operating cost operating cost
Business revenue Operating costs revenue from
margin from the same from the same
the same period
period of the period of the
of the previous
previous year previous year
year
By industry
Feeds 36,037,156,488.71 34,140,632,738.11 5.26% 9.78% 11.73% -1.66%
Poultry
8,289,654,758.78 8,060,747,223.18 2.76% -9.98% -7.90% -2.20%
business
Pig
7,764,687,577.91 9,944,668,304.13 -28.08% -23.74% -8.27% -21.61%
business
Food 4,913,494,290.92 4,808,585,139.74 2.14% 9.84% 8.77% 0.97%
By product
Feeds 36,037,156,488.71 34,140,632,738.11 5.26% 9.78% 11.73% -1.66%
Poultry
8,289,654,758.78 8,060,747,223.18 2.76% -9.98% -7.90% -2.20%
business
Pig
7,764,687,577.91 9,944,668,304.13 -28.08% -23.74% -8.27% -21.61%
business
Food 4,913,494,290.92 4,808,585,139.74 2.14% 9.84% 8.77% 0.97%
By region
Overseas 7,803,392,389.02 7,174,009,328.26 8.07% 16.80% 26.63% -7.14%
Domestic 54,526,138,687.62 54,889,544,846.11 -0.67% -0.57% 2.57% -3.08%
Data about main business of the Company after the most recent adjustment according to the statistical caliber at the end of
reporting period if the statistical caliber of main business data of the Company was adjusted during the reporting period
□applicable not applicable
IV. Analysis of non-core business
applicable □not applicable
Unit: Yuan
Proportion in total Remarks on reason for Whether
Amount
profits formation sustainable or not
Mainly are investment
income from the equity of
Investment income 1,051,106,361.78 -20.92% Minsheng Bank held and Yes
recognized using equity
method
Gain or loss from
-1,254,312.12 0.02%
change in fair value
Mainly affected by provision
for depreciation of
Asset impairment -1,392,274,637.07 27.71%
consumptive biological
assets.
Non-business revenue 50,176,226.42 -1.00%
Non-business
759,373,021.68 -15.11%
expenditure
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V. Analysis of assets and liabilities
1. Significant changes in asset composition
Unit: Yuan
End of this reporting period End of the previous year Proportion
Proportion in Proportion in increase or
Amount Amount decrease
total assets total assets
Monetary capital 12,273,198,570.83 9.08% 14,869,080,902.03 11.20% -2.12%
Accounts
1,568,654,007.72 1.16% 1,075,065,336.98 0.81% 0.35%
receivable
Contract assets 0.00% 0.00% 0.00%
Inventories 16,997,518,073.60 12.57% 15,925,570,801.61 12.00% 0.57%
Investment
177,677,301.43 0.13% 175,580,516.72 0.13% 0.00%
properties
Long-term equity
24,900,168,010.09 18.42% 23,839,747,505.37 17.96% 0.46%
investments
Fixed assets 34,510,985,427.99 25.52% 33,736,477,958.71 25.42% 0.10%
Construction in
20,884,968,295.81 15.45% 19,344,065,958.39 14.57% 0.88%
progress
Right-of-use
6,359,345,742.25 4.70% 6,633,017,924.99 5.00% -0.30%
assets
Short-term
19,831,059,413.76 14.67% 15,159,358,595.63 11.42% 3.25%
borrowings
Contract
2,184,511,867.85 1.62% 2,169,267,637.22 1.63% -0.01%
liabilities
Long-term
32,462,482,761.69 24.01% 32,712,427,058.77 24.65% -0.64%
borrowings
Lease liabilities 4,785,155,549.05 3.54% 4,714,341,705.25 3.55% -0.01%
Productive
8,203,829,483.40 6.07% 8,911,758,423.93 6.71% -0.64%
biological assets
2. Major overseas assets
□applicable not applicable
3. Assets and liabilities measured at fair value
applicable □not applicable
Unit: Yuan
Cumulat
ive Curre
Current gain change nt
Other
Beginning or loss from in fair provis Current Ending
Item Current sale chang
amount change in fair value ion for purchase amount
es
value recorded impair
in ment
equity
42
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Financial
assets
1. Held-for-
trading
financial
assets 22,756,497. 86,905,786.
20,535,939.74 47,366,824.13 17,985,429.70
(excluding 27 55
derivative
financial
assets)
4.
Investments
320,276,827.4 320,276,82
in other
8 7.48
equity
instruments
Subtotal of
340,812,767.2 22,756,497. 407,182,61
financial 47,366,824.13 0.00 17,985,429.70
2 27 4.03
assets
Total of the 340,812,767.2 22,756,497. 407,182,61
47,366,824.13 0.00 0.00 17,985,429.70
above 2 27 4.03
Financial - 48,621,136.
6,631,131.02
liabilities 48,621,136.25 25
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 Cause of restriction
Buy futures, bonding company margin, bill margin,
Monetary capital 1,580,886,204.82
rehabilitation bond, etc
Notes receivable 10,380,000.00 Used as pledge for short-term borrowings
Fixed assets 231,065,047.02 Used as collateral for long and short-term borrowings
Intangible assets 33,194,414.12 Used as collateral for long and short-term borrowings
Consumptive
18,499,549.23 Used as collateral for short-term borrowings
biological assets
Long-term equity
865,194,100.00 Used as pledge for long-term borrowings
investments
Total 2,739,219,315.19
VI. Analysis of investments
1. General condition
applicable □not applicable
43
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Investment during the reporting period Investment during the same period of the
Rate of change
(Yuan) previous year (Yuan)
25,368,741,126.68 23,905,100,494.03 6.12%
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
Perce
ntage
of
Re
endin
lat
g
ed Actua
invest
Name - l
Initial Purch Endi ment
of pa Begin Sale Provis profit
Relate Type of amoun ase ng amou
operat rty ning during ion for or
d- derivati t of during inve nt in
or of tra Start invest the impair loss
party ves deriva End date the stme net
deriva ns date ment reporti ment during
relatio investm tives reporti nt assets
tives ac amoun ng (if the
nship ent invest ng amo of the
invest tio t period any) report
ment period unt Comp
ment n ing
any at
or period
the
no
end of
t
report
ing
period
Futur
Futures
e
Non- and - -
broke N Oct. 12, Sept. 283.5 1,798. 2,996. -
related option 0.00 4,72 3,763.
rage o 2020 30, 2022 0 54 59 0.12%
party contract 1.82 25
comp
s
anies
Interest
Com
Non- rate -
merci N May 28, Sept. 1,106. 8,55 6,388.
related swap 0.00 720.9 0.00 0.22%
al o 2021 30, 2022 98 0.29 21
party and 5
banks
foreign
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exchang
e
forward
s
1,390. 1,798. 2,275. 3,82 2,624.
Total 0.00 -- -- 0.00 0.10%
48 54 64 8.47 96
Source of funding for derivatives
Self-raised
investment
Involvement in litigations (if
Not applicable
applicable)
Date on which the board
approval of derivatives
August 31, 2020
investment is announced 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 risk)
I. Risk analysis
Commodity futures hedging operation can effectively manage the purchase price risk of raw
materials, especially reduce the impact of falling price loss caused by high inventories on the
Company when raw materials fall sharply, but there will also be certain risks:
1. Risk of abnormal price fluctuations: in theory, the futures market prices and the spot market
prices of all the trade categories at the closing date will return to the same level. In the rare cases
of 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.
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
Remarks on risk analysis and business of value-preserved exchange rate and interest rate to reduce the risk exposure of foreign
control measures of derivatives exchange and interest rate, but at the same time there are certain risks:
positions during the reporting 1. Market risk. The difference between the contract exchange rate/interest rate and the actual
period (including but not limited exchange rate/interest rate at maturity date will generate investment gains and losses in the
to market risk, liquidity risk, value-preserved capital transaction business; During the duration of the value-preserved capital
credit risk, operational risk and transaction business, there will be revaluation gains and losses in each accounting period, and
legal risk) 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.
45
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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 fluctuations.
Risk management strategies for value-preserved capital transaction business
1. The Company conducts value-preserved capital transaction bus iness 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 financial
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
transaction 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
during the reporting period, with
business for the prevalent varieties in the domestic futures markets, for which the market
the analysis of fair value of
transparency is high and the transactions are active, and the transaction prices and the intraday
derivatives to disclose the
settlement unit price fully reflect the fair value of derivatives.
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
accounting principles of the transactions have been implemented in accordance with the relevant provisions of the
Company for derivatives during Accounting Standards for Business Enterprises—Recognition and Measurement of Financial
the reporting period changed Instruments and the Accounting Standards for Business Enterprises—Hedging issued by the
significantly compared with the Ministry of Finance of the People's Republic of China, without any changes.
previous reporting period.
The Company has the Securities Investment Management Policies in place and the Company’s
Special opinions of independent investments in securities are conducted while ensuring the security of the Company’s
directors on derivatives investments, daily operation and funds and will not affect the Company’s normal turnover of
investments and risk control of funds or normal conduct of its main business. While making investments in securities, the
the Company Company should continuously improve its business policies, further specify the control
procedures for key moving parts of investment and financing operations from authorization,
46
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
execution, supervision to information disclosure, strengthen obligations and duties of directors,
supervisors and senior executives and establish internal accountability system to enhance funds
management of the 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 released the Derivatives Investment Management Policies and the Futures Management
Policies. While conducting derivatives business, the Company should continue to enhance the
professional competency and capabilities of operating personnel and strengthen supervision.
5. Use of raised funds
applicable □not applicable
(1) Overall use of raised funds
applicable □not applicable
Unit: 10,000 Yuan
Perce
Amou
Total ntage
nt of
raised Total of
Total Purpose raised
Total funds raised total Total
raised and funds
Way Total raised repurpos funds raised raised
Year of funds used destination left
of amount of funds used ed repurpos funds funds
raising in the of raised idle for
raising raised funds accumulat during ed repur not yet
current fund not more
ively the accumul posed used
period yet used than
reportin atively accu
two
g period mulat
years
ively
Idle raised
funds for
temporary
replenish
Conve ment to
rtible working
bonds 381,553.0 capital,
2020 398,282.9 18,673.9
public 2 transferred
ly to special
issued account
for use
according
to project
progress
Idle raised
funds for
temporary
replenish
Non- ment to
public working
387,685.7 12,749.0
2020 issuan 399,475.05 57,146.42 capital,
8 6
ce of transferred
stocks to special
account
for use
according
to project
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progress
Idle raised
funds for
temporary
replenish
Conve ment to
rtible working
bonds 613,831.2 200,331. capital,
2021 813,309.64 25,287.08
public 2 47 transferred
ly to special
issued account
for use
according
to project
progress
1,611,067.5 1,383,070. 0.00 231,754.
Total -- 82,433.5 0 0 -- 0
9 02 % 43
Remarks on overall use of raised funds
According to the approval of China Securities Regulatory Commission (“CSRC”) in the Reply on Approval of Public Issuing of
Convertible Corporate Bonds by New Hope Liuhe Co., Ltd. (CSRC Approval [2019] No.1902), the Company publicly issued 4
billion Yuan of convertible corporate bonds with par value of 100 Yuan, a total of 40 million bonds for a period of 6 years. The
total amount raised was 4 billion Yuan, less issuance expense of 17.171 million Yuan, the actual net amount raised was 3,982.829
million Yuan.
According to the approval of CSRC in the Reply on Approval of the Non-public Offering of Stocks by New Hope Liuhe Co.,
Ltd. (CSRC Approval [2020] No.1961), the Company privately placed 177,147,918 RMB ordinary shares to two particular
shareholders, namely, South Hope Industrial Co., Ltd. and New Hope Group Co., Ltd., with the issue price of 22.58 Yuan per
share. The total amount raised was 4 billion Yuan, less issuance expense of 5.2495 million Yuan, the actual net amount raised was
3,994.7505 million Yuan.
According to the approval of CSRC in the Reply on Approval of Public Issuing of Convertible Corporate Bonds by New Hope
Liuhe Co., Ltd. (CSRC Approval [2021] No.1351), the Company publicly issued 8.15 billion Yuan of convertible corporate bonds
with par value of 100 Yuan, a total of 81.5 million bonds for a period of 6 years. The total amount raised was 8.15 billion Yuan,
less issuance expense of 16.9036 million Yuan, the actual net amount raised was 8,133.0964 million Yuan.
According to relevant provisions of the Regulatory Guidelines for Listed Companies No. 2—Regulatory Requirements for
Management and Use of Raised Funds by Listed Companies of CSRC, Shenzhen Stock Exchange Guidelines for Standard
Operation of Listed Companies and Administrative Measures of New Hope Liuhe Co., Ltd. for Use of Raised Funds”, in light of
the actual requirements of the Company for use and management of raised funds, the Company’s entities responsible for
implementation of investment projects using raised funds signed Tripartite Supervision Agreement on Raised Funds with the
sponsor institutions and supervising banks respectively, whereby various project entities open earmarked accounts for raised funds
with corresponding organizations of the supervising bank.
(2) Projects to which raised funds are committed
applicable □not applicable
Unit: 10,000 Yuan
Whe Am Wheth Whe
ther ount Investme er ther
Committed Total
the inve nt Date when estima the
investment committ Total Accumulativ Benefits
proj sted progress the project ted proje
projects and ed investmen ely invested realized in
ect in as of the reaches the benefi ct
investment investm t after amount as of this
has this end of intended ts feasi
destinations ent of adjustmen the end of reporting
been repo period usable state have bility
of over- raised t (1) period (2) period
chan rting (3)=(2)/(1 been has
raised funds funds
ged peri ) reache chan
(incl od d ged
48
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
udin signi
g fican
parti tly
al
chan
ge)
Committed investment projects
New 0.50
million
commercial
pigs cluster Oct. 31,
No 50,000 50,000 49,074.15 98.15% -2,412.34 No No
project in 2021
Ningjin,
Dezhou,
Shandong
0.70 million
commercial
pigs project
of
Huanghua Oct. 31,
No 70,000 70,000 68,899.05 98.43% -19,881.2 No No
Xinhao 2021
Technology
Co., Ltd. at
Liguan
Village
Standardize
d pig farm
project of
6000 pigs
of Yucheng Jul. 31,
No 10,000 10,000 10,000 100.00% -2,146.47 No No
New Hope 2020
Liuhe
Swine
Breeding
Co., Ltd
0.30 million
hogs cluster
developmen Oct. 31,
No 20,000 20,000 20,000 100.00% -6,762.01 No No
t project in 2020
YangYuan
County
1.00 million
hogs
breeding
project of
Tongliao Oct. 31,
No 117,500 117,500 103,902.77 88.43% -207.89 No No
Xinhao 2021
Farming
Co., Ltd at
Sanyitang
Farm
1.00 million
hogs
farming Oct. 31,
No 117,500 117,500 114,677.05 97.60% -9,393.77 No No
project of 2021
Tongliao
Xinhao
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Farming
Co., Ltd at
Zhenan
Farm
Jinfeng
Breeding
Pig Farm
Project of
Leshan Nov. 30,
No 5,000 5,000 5,000 100.00% -914.1 No No
New Hope 2019
Farming
Co., Ltd in
Jingyan
County
0.15 million
piglets
breeding
and farming
integrated Jan. 31,
No 10,000 10,000 10,000 100.00% -2,988.04 No No
eco- 2020
industrial
park in
Lingbao,
Henan
0.70 million
hogs/a 36,7
Nov. 30,
farming No 92,000 92,000 67.2 88,212.85 95.88% -7,165.41 No No
2021
project in 3
Shuozhou
Livestock
Farm No. 1
project of
531. Nov. 30,
Gansu New No 24,000 24,000 21,702.37 90.43% -5,272.47 No No
36 2021
Hope at
Pingxian
Village
Livestock
Farm No. 2
project of
4,40 Nov. 30,
Gansu New No 24,000 24,000 23,179.14 96.58% -3,616.15 No No
8.83 2021
Hope at
Pingxian
Village
New 0.70
million
hogs project
in Xicha Sept. 30, -
No 25,000 25,000 25,000 100.00% No No
Town, 2020 13,920.04
Lanzhou
New
District
Tonghe
Fattening
Farm 4,18 Nov. 30,
No 20,000 20,000 19,527.59 97.64% -2,777.7 No No
Project in 8.06 2021
Beihu
District,
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Chenzhou
13,500
breeding
pig/a
breeding
plant
constructio 2,49 Jul. 31,
No 16,000 16,000 15,110.95 94.44% -241.35 No No
n project of 3.37 2021
Ruzhou
Quansheng
Farming
Technology
Co., Ltd.
13,500
pigs/a
storied
building
sow farm
project at Dec. 31,
No 10,000 10,000 10,000 100.00% -3,549.58 No No
Nanxiang 2020
Village,
Chenguo
Town,
Laizhou
City
New 0.30
million
commercial
pigs phase I
breeding
2,12 Oct. 31,
pig farm No 20,000 20,000 22,127.39 110.64% -530.29 No No
7.39 2020
project of
Dingzhou
Xinhao
Farming
Co., Ltd.
New 0.30
million
commercial
pigs phase
II nurturing
and
Dec. 31,
fattening No 12,000 12,000 12,000 100.00% -3,380.27 No No
2020
farm project
of
Dingzhou
Xinhao
Farming
Co., Ltd.
13,500
breeding
pigs feeding
project of
Apr. 30,
Qingfeng No 21,000 21,000 19,803.87 94.30% -633.8 No No
2021
Xinliu
Farming
Technology
Co., Ltd.
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13,500
sows farm
project of
Wuhe New
Hope Liuhe
Jul. 31,
Livestock No 20,000 20,000 15,614.98 78.07% -8,166.68 No No
2021
Co., Ltd. at
Huojia
Village,
Xiaoxi
Town
0.18 million
hogs
(breeding
and farming
cycle) farm
project at 4,31 Nov. 30,
No 24,000 24,000 23,893.88 99.56% -1,537.56 No No
Chenliu 2.18 2021
Village,
Shiling
Town,
Laibin,
Guangxi
0.10 million
commercial
pigs project
of Heze 2,31 Sept. 30,
No 6,000 6,000 8,152.83 135.88% -1,030.54 No No
Xinhao 8 2021
Farming
Co., Ltd. at
Liangtang
72,000 hogs
fattening
farm Sept. 30,
No 6,000 6,000 3,359.93 56.00% -541.16 No No
constructio 2021
n project in
Laizhou
Pig farming
Not
project of Aug. 31,
No 43,500 43,500 15,184.38 34.91% applic No
Gansu 2022
able
Xinliu
Pig farming
Not
project of 252. Aug. 31,
No 32,000 32,000 1,093.54 3.42% applic No
Yiliang 32 2022
able
Xinliu
Pig farming
Not
project of Aug. 31,
No 27,500 27,500 11,720.39 42.62% applic No
Luding 2022
able
Xinyue
Pig farming
Not
project of 3,40 Aug. 31,
No 31,000 31,000 16,898.59 54.51% applic No
Luocheng 2.04 2022
able
Xinhao
Pig farming
Not
project of Aug. 31,
No 28,500 28,500 15,368.05 53.92% applic No
Lezhi 2022
able
Xinmu
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Pig farming
Not
project of 6,00 Aug. 31,
No 53,000 53,000 41,075.23 77.50% applic No
Guigang 6.83 2022
able
Xinliu
Pig farming
Not
project of 1,62 Aug. 31,
No 53,500 53,500 30,254.82 56.55% applic No
Pizhou New 7.38 2022
able
Hope
Pig farming
Not
project of 295. Aug. 31,
No 22,000 22,000 14,665.3 66.66% applic No
Liuzhou 03 2022
able
Xinliu
Pig farming
Not
project of 226. Aug. 31,
No 13,500 13,500 10,404.56 77.07% applic No
Lipu 17 2022
able
Xinhao
Pig farming
project of May 31,
No 21,500 21,500 21,500 100.00% -4,584.92 No No
Meishan 2021
Xinmu
0.30 million
hogs farm
project at
Not
Xiangshan 37.3 Aug. 31,
No 19,000 19,000 15,750.46 82.90% applic No
Village, 1 2022
able
Xindu
Town,
Tongcheng
72,000 pigs
fattening
farm project
at Not
561. Aug. 31,
Qipanling No 16,500 16,500 8,976.12 54.40% applic No
21 2022
Village, able
Fangang
Town,
Tongcheng
Pig farming
Not
project of 2,19 Aug. 31,
No 18,500 18,500 8,668.58 46.86% applic No
Yi County 5.81 2022
able
Xinliu
13,500
sows farm
project at
Ciyu
Village,
Not
Xinxing 2,23 Aug. 31,
No 19,000 19,000 18,333.02 96.49% applic No
Town, 0 2022
able
Heishan
County,
Jinzhou,
Liaoning
Province
72,000 pigs
Not
fattening Aug. 31,
No 16,500 16,500 5,550 33.64% applic No
farm project 2022
able
at Liuhe
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Village,
Yingchengz
i Town,
Jinzhou,
Liaoning
Province
0.40 million
hogs
breeding
and farming
eco- Not
1,78 Aug. 31,
recycling No 17,500 17,500 16,042.41 91.67% applic No
5.3 2022
agricultural able
constructio
n project of
Juye
Xinhao
72,000 pigs
fattening Not
159. Aug. 31,
farm project No 9,000 9,000 8,384.4 93.16% applic No
2 2022
of Juye able
Xinhao
Breeding
pig farm
project of Not
Aug. 31,
Yantai No 16,500 16,500 647 16,500 100.00% applic No
2022
Xinhao able
Farming
Co., Ltd.
In-house
pig
fattening
Not
farm project 1,42 Aug. 31,
No 15,000 15,000 12,658.88 84.39% applic No
of Yantai 2.26 2022
able
Xinhao
Farming
Co., Ltd.
0.20 million
hogs
farming
project of
Puyang Not
Aug. 31,
Xinliu No 17,000 17,000 17,000 100.00% applic No
2022
Farming able
Technology
Co., Ltd. at
Dongding
Village
0.20 million
hogs
farming
project of
Not
Puyang 93.2 Aug. 31,
No 16,500 16,500 4,600.73 27.88% applic No
Xinliu 9 2022
able
Farming
Technology
Co., Ltd. at
Huoying
54
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Village
0.10 million
hogs
farming
project of Not
Aug. 31,
Puyang No 8,000 8,000 37.2 3,406.93 42.59% applic No
2022
Xinliu able
Farming
Technology
Co., Ltd.
0.18 million
commercial
pigs project
in Sept. 30,
No 10,500 10,500 10,500 100.00% -1,859.35 No No
Niuzhuang 2021
Town,
Dongying
District
0.18 million
commercial
pigs project
Sept. 30,
in Longju No 9,500 9,500 9,500 100.00% -2,293.36 No No
2021
Town,
Dongying
District
Pig farming
Not
project of 4,30 Aug. 31,
No 35,500 35,500 35,294.83 99.42% applic No
Shibing 8.73 2022
able
New Hope
Subtotal of
-
committed 1,290,50 82,4
-- 1,290,500 1,058,570.02 -- -- 105,806.4 -- --
investment 0 33.5
5
projects
Investment destinations of over-raised funds
None
Bank loans
repaid (if -- 244,500 244,500 244,500 100.00% -- -- -- --
any)
Working
capital
-- 80,000 80,000 80,000 100.00% -- -- -- --
supplement
ed (if any)
Subtotal of
investment
destinations -- 324,500 324,500 324,500 -- -- -- --
of over-
raised funds
-
1,615,00 82,4
Total -- 1,615,000 1,383,070.02 -- -- 105,806.4 -- --
0 33.5
5
Failure to
All investment projects using raised funds were affected by ASF and cyclic market quotations of hogs in 2021,
reach the
when pig selling prices were low, project capacities were underutilized and it takes a certain period of time for
planned
standby sows to move from littering to marketing of commercial pigs and projects have not yet reached the full-
progress or
load condition at the initial stage of commissioning, causing investment projects’ actual income of this year yet to
anticipated
achieve estimated annual benefits.
income and
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reasons (by
project)
Remarks on
significant
changes in Not applicable
project
feasibility
Amount,
purpose and
use
Not applicable
progress of
over-raised
funds
Changes in
places of
implementa
tion of
Not applicable
investment
projects
using raised
funds
Adjustment
s to manner
of
implementa
tion of Not applicable
investment
projects
using raised
funds
Applicable
On January 22, 2020, the 10th meeting of the 8th board of directors and the 6th meeting of the 8th board of
supervisors of the Company deliberated and approved the Proposal on Replacing Self-raised Funds Previously
Invested with Funds Raised from Convertible Corporate Bonds, agreeing that the Company can replace self-raised
Preliminary
funds of 1,250.4220 million Yuan that the Company previously invested in projects with the funds of 1,250.4220
investments
million Yuan raised.
and
replacement
On September 28, 2020, the 23rd meeting of the 8th board of directors of the Company deliberated and approved the
s of
Proposal on Replacing Self-raised Funds Previously Invested and Part of Issuance Costs with Funds Raised from
investment
Non-public Issuance of Stocks, agreeing that the Company can replace self-raised funds of 1,866.1513 million
projects
Yuan that the Company previously invested in projects with the funds of 1,866.1513 million Yuan raised.
using raised
funds
On November 10, 2021, the 47th meeting of the 8th board of directors of the Company deliberated and approved the
Proposal on Replacing Self-raised Funds Previously Invested with Funds Raised from Convertible Corporate
Bonds, agreeing that the Company can replace self-raised funds that the Company previously invested in projects
and payment of part of issuance costs with the funds of 3,360.5204 million Yuan raised.
Applicable
On February 7, 2020, the 11th meeting of the 8th board of directors of the Company deliberated and approved the
Use of idle
Proposal on Use of Part of Idle Raised Funds to Temporarily Supplement Working Capital, agreeing that the
raised funds
Company can use no more than 2,200.0000 million Yuan of idle raised funds to supplement its working capital on
to
a temporary basis for a period of no more than 12 months from the date of deliberation and approval by the
temporarily
Company’s board of directors. The Company’s sponsor institution and independent directors expressed consent to
supplement
the aforesaid matter regarding use of part of idle raised funds to temporarily supplement working capital. As of
working
February 23, 2021, the Company returned the aforesaid raised funds used to temporarily supplement working
capital
capital in entirety into the special account for raised funds and notified the sponsor institution and sponsor
representative of the fact accordingly.
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On February 25, 2021, the 31st meeting of the 8th board of directors of the Company deliberated and approved the
Proposal on Use of Part of Idle Raised Funds to Temporarily Supplement Working Capital, agreeing that the
Company can use no more than 1,680.0000 million Yuan of idle raised funds to supplement its working capital on
a temporary basis for a period of no more than 12 months from the date of deliberation and approval by the
Company’s board of directors. The Company’s sponsor institution and independent directors expressed consent to
the aforesaid matter regarding use of part of idle raised funds to temporarily supplement working capital. As of
February 21, 2022, the Company returned the aforesaid raised funds used to temporarily supplement working
capital in entirety into the special account for raised funds and notified the sponsor institution and sponsor
representative of the fact accordingly.
On September 28, 2020, the 23rd meeting of the 8th board of directors of the Company deliberated and approved the
Proposal on Use of Part of Idle Raised Funds to Temporarily Supplement Working Capital, agreeing that the
Company can use no more than 1,200.0000 million Yuan of idle raised funds to supplement its working capital on
a temporary basis for a period of no more than 12 months from the date of deliberation and approval by the
Company’s board of directors. The Company’s sponsor institution and independent directors expressed consent to
the aforesaid matter regarding use of part of idle raised funds to temporarily supplement working capital. As of
September 15, 2021, the Company returned the aforesaid raised funds used to temporarily supplement working
capital in entirety into the special account for raised funds and notified the sponsor institution and sponsor
representative of the fact accordingly.
On September 16, 2021, the 43rd meeting of the 8th board of directors of the Company deliberated and approved the
Proposal on Use of Part of Idle Raised Funds to Temporarily Supplement Working Capital, agreeing that the
Company can use no more than 700.0000 million Yuan of idle raised funds to supplement its working capital on a
temporary basis for a period of no more than 12 months from the date of deliberation and approval by the
Company’s board of directors. The Company’s sponsor institution and independent directors expressed consent to
the aforesaid matter regarding use of part of idle raised funds to temporarily supplement working capital. As of
June 30, 2022, the balance of idled raised funds for the Company to temporarily supplement its working capita l
was 120.7200 million Yuan.
On November 10, 2021, the 47th meeting of the 8th board of directors of the Company deliberated and approved the
Proposal on Use of Part of Idle Raised Funds to Temporarily Supplement Working Capital, agreeing that the
Company can use no more than 4,700.0000 million Yuan of idle raised funds to supplement its working capital on
a temporary basis for a period of no more than 12 months from the date of deliberation and approval by the
Company’s board of directors. The Company’s sponsor institution and independent directors expressed consent to
the aforesaid matter regarding use of part of idle raised funds to temporarily supplement working capital. As of
June 30, 2022, the balance of idled raised funds for the Company to temporarily supplement its working capita l
was 1,972.7600 million Yuan.
On February 23, 2022, the 50th meeting of the 8th board of directors of the Company deliberated and approved the
Proposal on Use of Part of Idle Raised Funds to Temporarily Supplement Working Capital, agreeing that the
Company can use no more than 180.0000 million Yuan of idle raised funds to supplement its working capital on a
temporary basis for a period of no more than 12 months from the date of deliberation and approval by the
Company’s board of directors. The Company’s sponsor institution and independent directors expressed consent to
the aforesaid matter regarding use of part of idle raised funds to temporarily supplement working capital. As of
June 30, 2022, the balance of idled raised funds for the Company to temporarily supplement its working capita l
was 180.0000 million Yuan.
Balance of Applicable
idle funds
Due to the impacts of the COVID-19, some regions saw late commencement of work and prolonged project
in project
construction cycle; due to the impacts of ASF, epidemic containment requirements were tightened and construction
implementa
periods of projects prolonged. Some of investment projects using raised funds are constructed phase by phase and
tion and
the first phase has now completed, with subsequent second and third phases underway.
reasons
As of June 30, 2022, the raised funds not yet used by the Company from public issuance of convertible corporate
bonds was 186,739,041.07 Yuan (of which, 6,739,041.07 Yuan was deposited in earmarked accounts for raised
Purpose and funds, and the remaining 180,000,000.00 Yuan was used to temporarily supplement working capital). The raised
destination funds not yet used include interest income from earmarked accounts for raised funds.
of raised As of June 30, 2022, the raised funds not yet used by the Company from private placement of stocks was
funds not 127,490,565.15 Yuan (of which, 6,770,565.15 Yuan was deposited in earmarked accounts for raised funds, and the
yet used remaining 120,720,000.00 Yuan was used to temporarily supplement working capital). The raised funds not yet
used include interest income from earmarked accounts for raised funds.
As of June 30, 2022, the raised funds not yet used by the Company from public issuance of convertible corporate
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Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
bonds was 2,003,314,706.00 Yuan (of which, 30,554,706.00 Yuan was deposited in earmarked accounts for raised
funds, and the remaining 1,972,760,000.00 Yuan was used to temporarily supplement working capital). The raised
funds not yet used include interest income from earmarked accounts for raised funds.
Issues or
other
circumstanc
es existing
None
in use and
disclosure
of raised
funds
(3) Items of change in raised funds
□applicable not applicable
The Company had no items of change in raised funds within the reporting period.
VII. Sale of major assets and equities
1. Sale of major assets
□applicable not applicable
The Company did not sell any major assets during the reporting period.
2. Sale of major equities
□applicable not applicable
VIII. Analysis of major majority-owned and minority-owned subsidiaries
applicable □not applicable
Major subsidiaries and minority-owned subsidiaries that have an impact on the Company's net profits of more than 10%
Unit: Yuan
Compa
Company Registered Business Operating
ny Main business Total assets Net assets Net profits
name capital revenue profits
type
Technical exchange
and technology
promotion;
technology
Beijing development;
New Hope agricultural
Liuhe scientific research
- - -
Biotechnol Subsid and experimental 500,000 74,270,154, 8,490,776,
5,920,989, 4,874,813, 5,550,667,
ogy iary development; feed ,000.00 792.50 437.07
828.24 473.00 467.12
Industry sales; import and
Group Co., export of goods and
Ltd technology; import
and export agency.
(The market entity
chooses business
items at its sole
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Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
discretion and
conducts business
activities according
to law; for import
and export of goods
and technology,
import and export
agency and business
items subject to
approval according
to law, business
activities shall be
conducted with the
approval of
competent
authorities and
according to
approved contents;
no business
activities of items
prohibited or
restricted by
national and local
industry policies
may be conducted).
Venture capital
investment (no
engagement in
guarantee or real
estate business; no
participation in
initiation or
management of
public or private
securities
investment funds or
invest in financial
derivatives),
investment
management(exclud
New Hope
ing financial and
Liuhe Subsid 576,555,6 21,787,227, 21,787,22 1,029,142, 1,029,044,
brokerage business. 0.00
Investment iary 00.00 918.74 7,918.74 662.07 862.16
Shall not raise, sell
Co., Ltd.
or transfer private
placement products
or private placement
product earning
rights from or to
unqualified
investors). (If the
aforesaid businesses
are conducted, the
market entity may
not raise funds
publicly, take public
deposits or issue
loans; may not
publicly trade
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Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
securities
investment products
or financial
derivatives; may not
deal in financial
products, wealth
management
products or related
derivative
businesses);
financial advisory
(excluding finance
company business);
wealth management
consulting and
enterprise
reorganization
consulting; market
survey (excluding
state secrets and
personal privacy);
credit investigation,
technology
development and
transfer, technical
consulting services
【for business items
subject to approval
according to law, no
business activities
may be conducted
without approval of
competent
authorities】.
Import and export
business; sale of
Shandong medicated feed
New Hope additives; dealing in - -
Subsid 3,811,7 26,703,943, 6,655,927, 31,645,56
Liuhe feed ingredients; 421,683,7 433,649,81
iary 64,705.00 343.53 853.93 2,269.78
Group Co., enterprise 04.83 9.90
Ltd. management
consulting services,
etc.
Licensed items:
food production;
production of grain-
processed food;
food operation (sale
Sichuan of prepackaged
New Hope foods); food -
Subsid 3,000,0 14,212,455, 2,407,450, 13,971,78 56,145,01
Liuhe operation (sale of 12,429,036
iary 00,000.00 938.38 283.99 4,107.06 4.79
Farming bulk foods); food .73
Co., Ltd import and export;
dealing in
veterinary drugs;
import and export of
goods; import and
export of
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Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
technology (for
business items
subject to approval
according to law, no
business activities
may be conducted
without approval of
competent
authorities, with
specific business
items subject to
approval documents
or permits from
related
department)general
items: biological
feed research and
development; sale
of feed ingredients;
sale of feed
additives; sale of
livestock and
fishery feeds; cereal
sales; sale of
agricultural and
sideline products;
corporate
headquarters
management;
enterprise
management;
technical services,
technology
development,
technical
consulting,
technical exchange,
technology transfer
and technology
promotion (except
for business items
subject to approval
according to law,
business activities
are to be conducted
at its sole discretion
according to law by
virtue of business
license.
Acquisition and disposal of subsidiaries during the reporting period
applicable □not applicable
Way of acquisition and disposal of Impact on overall production, operation
Company name
subsidiaries during the reporting period and performance
Qinzhou New Hope Liuhe Farming
Stock purchase Loss of 343.49 Yuan
Technology Co. Ltd.
Chaoyang New Hope Liuhe Farming Invested and established No impact
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Technology Co. Ltd.
Guiyang New Hope Liuhe Agriculture
Invested and established Loss of 122,500 Yuan
Technology Co. Ltd.
Xiaogan Xinyue Farming Technology
Deregistered Loss of 1,456,796.26 Yuan
Co. Ltd.
New Hope Poland Limited Deregistered No impact
Leizou New Hope Farming Co., Ltd. Deregistered No impact
Guiyang Xinhao Farming Co., Ltd. Deregistered No impact
Dazhu County Xinliu Farming
Deregistered No impact
Technology Co., Ltd.
Jianshi New Hope Farming Co., Ltd. Deregistered No impact
Rong County Xinyue Farming
Deregistered No impact
Technology Co., Ltd.
Bazhong New Hope Pig Breeding
Deregistered Loss of 59.93 Yuan
Technology Co., Ltd.
Liu’an Tianye Xinhua Food Co., Ltd. Deregistered Loss of 5,675,668.04 Yuan
Longkou Liuhe Breeding Co., Ltd. Deregistered Loss of 270.31 Yuan
Shangyi New Hope Liuhe Farming
Deregistered No impact
Technology Co., Ltd.
Xiamen Xiashang New Hope Agriculture
Deregistered No impact
Development Co., Ltd.
Chengdu KangYuan Shangpin Trading
Deregistered Loss of 1,382.39 Yuan
Co., Ltd.
Weifang Liuhe Dehui Poultry
Deregistered Loss of 278,532.52 Yuan
Development Co., Ltd.
Longquan Xinyue Farming Technology
Deregistered No impact
Co., Ltd.
Remarks on major majority-owned and minority-owned subsidiaries
During the reporting period, the Company earned 1,028,858,200 Yuan from investment in Minsheng Bank, which was the
investment income recognized by equity method of 1,828,327,362 shares held by New Hope Investment Co., Ltd. (a majority-
owned subsidiary of the Company), with a shareholding ratio of 4.1759%.
IX. Structured entities controlled by the Company
□applicable not applicable
X. Risks faced by the Company and countermeasures
Please refer to the relevant content of the risk factors stated in “Livestock, Poultry and Aquaculture Business” under section 1 of
the Company's Semiannual Report 2022.
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Section 4 Corporate Governance
I. Details of annual general meeting of shareholders and extraordinary general meeting of
shareholders held within the reporting period
1. General meetings of shareholders during this reporting period
Ratio of
Session Meeting type attending Date of meeting Date of disclosure Meeting resolution
investors
Refer to “Announcement on
Resolutions of the First
Extraordinary General
Meeting of Shareholders in
The 1st
2022” (No: 2022-20)
extraordinary Extraordinary
62.67% Feb. 11, 2022 Feb. 12, 2022 published by the Company on
general meeting general meeting
China Securities Journal,
of 2022
Securities Daily, Securities
Times, Shanghai Securities
News and cninfo.com on
February 12, 2022 for details.
Refer to “Announcement on
Resolutions of the Annual
General Meeting of
Shareholders of 2021” (No:
Annual general 2022-79) published by the
Annual general
meeting of 56.20% May 31, 2022 Jun. 01, 2022 Company on China Securities
meeting
2021 Journal, Securities Daily,
Securities Times, Shanghai
Securities News and
cninfo.com on June 1, 2022
for details.
2. Extraordinary general meetings of shareholders requested by preferred shareholders with voting
rights restored
□applicable not applicable
II. Changes in directors, supervisors, and senior executives
applicable □not applicable
Name: Position held Type Date Reason
Separation at
Election at expiration
Deng Feng Independent director expiration of office May 31, 2022
of office term
term
Election at expiration
Wang Jiafen Independent director Elected May 31, 2022
of office term
Separation at
Election at expiration
Yang Fang Supervisor expiration of office May 31, 2022
of office term
term
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Separation at
Election at expiration
Sun Daoju Supervisor expiration of office May 31, 2022
of office term
term
Election at expiration
Ji Yueqi Supervisor Elected May 31, 2022
of office term
Separation at
Election at expiration
Ji Chongxing Vice president expiration of office May 31, 2022
of office term
term
Separation at
Election at expiration
Wang Fang Vice president expiration of office May 31, 2022
of office term
term
Separation at
Election at expiration
Zhu Liqiang President assistant expiration of office May 31, 2022
of office term
term
Director of human
Gao Li Dismissed Jan. 04, 2022 Physical condition
resources (CHRO)
Director of human Appointed by board of
Huang Kun Appointed Jan. 6, 2022
resources directors
Director of engineering
Election at expiration
Li Shuang and equipment Appointed May 31, 2022
of office term
operations
III. Profit distribution and conversion of capital reserves into share capital within 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. Equity incentives
1. The 41st meeting of the 8th board of directors, the 21st meeting of the 8th board of supervisors and the 1st extraordinary
general meeting of 2022 deliberated and approved the Proposal to Cancel Some Stock Options and Repurchase Some Restricted
Stocks for Cancellation, agreeing to cancel a total of 1,246,445 stock options already granted to but not yet exercised by 6
incentive objects who already separated from the Company, and to repurchase and cancel a total of 168,750 shares of restricted
stocks granted but not yet released for sale.
The Company handled and completed the repurchase and cancellation formalities for these stock options and restricted stocks
with CSDC Shenzhen on April 20, 2022.
2. The 3rd meeting of the 9th board of directors and the 2nd meeting of the 9th board of supervisors deliberated and approved
the Proposal on Adjusting Matters Related to the 2022 Restricted Stock Incentive Plan and the Proposal on Granting Restricted
Stocks to Incentive Objects for the First Time. Given that 13 incentive objects of the 2022 Restricted Stock Incentive Plan
including Wang Fang and Liu Jing voluntarily gave up some or all of the restricted stocks to be granted to them due to persona l
reasons, which is 1.22 million shares in total, the board of directors of the Company adjusted the matters related to this incentive
plan based on the authorization of the 2021 annual general meeting of shareholders. After the adjustment, the number of the first
batch of incentive objects of this incentive plan was adjusted from 203 to 199; the number of restricted shares to be granted in this
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Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
incentive plan remained unchanged at 41.37 million, of which the number of the first batch of restricted shares to be granted was
33,275,000, and the number of restricted shares reserved for grant was 8,095,000.
The board of directors of the Company determined that the conditions for the f irst grant specified in the 2022 restricted stock
incentive plan had been fulfilled, and that July 25, 2022 was the first granting date for granting 33,275,000 restricted shares to 199
incentive objects who met the granting conditions at the price of 7.98 Yuan per share.
2. Implementation of employee stock ownership plans
□applicable not applicable
3. Other employee incentive measures
□applicable not applicable
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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 of Distri
Total
Name of major Number bution Pollutant Exce
Total appro
company pollutants Way of of of Emission emission ssive
emissio ved
or and discharge discharge discha concentration standards emis
ns emissi
subsidiary particular outlets rge applied sion
ons
pollutants outlets
“Waste gas: “Water
nitrogen Pollutant
oxides, Discharge
particulate Standards for
matter, Meat
sulfur Processing
dioxide, “Wast “COD: Industry (GB
hydrogen e gas: 450mg/L 13457-92)
sulfide, east TN: 50mg/L Agreements
ammonia, side of NH3-N: with sewage
odor “Waste the 35mg/L treatment
concentratio gas: Comp TP: 6mg/L plants
“COD
n directly any’s pH: 6-8.5 Odor
:
discharge 6 (5 for plant SS: 200mg/L Pollutant “COD:
Linyi 486t/a
Wastewater: d after waste gas, BOD5: Discharge 486t/a;
Liuhe ; Non
COD, treatment 1 for Waste 120mg/L Standards NH3-N:
Food Co., NH3- e
ammonia Wastewate wastewate water: Animal and (GB 14554- 37.82t/a
Ltd. N:
nitrogen, r: r) south vegetable oil: 93), ”
37.82t
total indirectly side of 50mg/L Emission
/a”
nitrogen, discharge the NOx: Standards for
total d” west 150mg/Nm Air Pollutants
phosphorus, gate SO2: 50mg/Nm from Boilers
pH value, of the Dust: (GB 13271-
BOD5, Comp 10mg/Nm 2014),
animal and any” ” Emission
vegetable Standards for
oil, Air Pollutants
suspended from Boilers
solids, (DB37 2374-
coliform 2018)
groups” ”
“Waste gas: “Waste “Emission
“Ammonia
ammonia gas: Standards for
nitrogen COD
Lanling (ammonia directly Air Pollutants
<5mg/L, COD 13.1t/
New gas), discharge 4 (3 for from Boilers
East COD<50mg/L; 13.1t/a, a,
Hope hydrogen d after waste gas, (DB37 2374-
side of ammoni ammo Non
Liuhe sulfide, odor treatment 1 for 2018),
the boiler<50mg/N a nia e
Hongjun concentratio Wastewate wastewate Odor
plant m, odor nitrogen nitrog
Food Co., n, sulfur r: r) Pollutant
concentration 1.3t/a en
Ltd. dioxide, indirectly Discharge
2000mg/Nm” 1.3t/a
nitrogen discharge Standards
oxides, d” (GB 14554-
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particulate 93)
matter, Notice on
Ringelman Approval and
blackness Release of the
Wastewater: Modification
COD, pH List to 4
value, Standards
dissolved including the
total solids, Comprehensiv
ammonia e Discharge
nitrogen Standards for
(NH3-N), Water
total Pollutants
nitrogen (in Along the
N), total South-to-
phosphorus North Water
(in P), Diversion
suspended Project in
solids, Shandong
BOD5, flow Province
rate, animal (L.Z.J.B.F.
and [2011] No.
vegetable 35),
oil, total Water
coliform Pollutant
groups. Discharge
Standards for
Meat
Processing
Industry (GB
13457-92)”
“Waste gas: “Emission
ammonia Standards for
(ammonia Air Pollutants
gas), from Boilers
“Wast
hydrogen (DB37 2374-
e gas: “COD
sulfide, odor 2018),
north cr:
concentratio Odor
west 11.8t/a
n, sulfur Pollutant “COD
side of NH3-
dioxide, “Waste Discharge cr:
Pingyi the N:
nitrogen gas: “Ammonia Standards 11.8t/a
Refrigerat plant 0.23t/
oxides, directly nitrogen 45mg/l (GB 14554- NH3-N:
ion and a
particulate discharge 3 (2 for COD 500mg/l 93) 0.23t/a
Factory of within Total
matter, d after waste gas, Total Water Quality Total
Shandong the phosp Non
Ringelman treatment 1 for phosphorus Standards for phospho
New plant horus e
blackness Wastewate wastewate 8mg/l Sewage rus
Hope 5.29t/
Wastewater: r: r) Total nitrogen Discharged 5.29t/a
Liuhe Waste a
COD, pH indirectly 70mg/l into Urban Total
Group water: Total
value, discharge ” Sewers (GB/T nitrogen
Co., Ltd. northe nitrog
dissolved d” 31962-2015), 46.3t/a
ast en
total solids, Water ”
side of 46.3t/
ammonia Pollutant
the a
nitrogen Discharge
Comp ”
(NH3-N), Standards for
any
total Meat
nitrogen (in Processing
N), total Industry (GB
phosphorus 13457-92)”
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(in P),
suspended
solids,
BOD5, flow
rate, animal
and
vegetable
oil, total
coliform
groups.
Cooking
Fume
Emission
Standards
(DB37/597-
“Waste gas: 2006)
ammonia 8 (7 Emission
(ammonia exhaust Standards for
gas), gas “Wast Air Pollutants
hydrogen discharge e gas: from Boilers
sulfide, odor outlets: 2 at of Shandong
concentratio chicken the (DB37/2374-
n, sulfur line northe 2018)，
dioxide, sewage ast Odor
nitrogen regulation side of Pollutant
oxides, tank, duck the Discharge
particulate line plant, Standards
matter, sewage 1 at (GB 14554-
“COD
dyeing and regulation the 93), Regional
“Waste “COD cr:
finishing tank, southe Comprehensiv
gas: cr: 67.58
fumes chicken ast e Emission
directly 67.584t/ 4t/a
Wastewater: line side of Standards for
discharge COD: 40mg/l, a NH3-
Qingdao COD, pH workshop, the Air Pollutants
d after NH3-N: 2mg/l, NH3-N: N:
Tianrun value, duck line plant, (GB 16297- Non
treatment TP: 0.4mg/l, 3.3792t/ 3.379
Food Co., dissolved workshop, 3 in 1996), e
Wastewate TN: 20mg/l, a 2t/a
Ltd. total solids, prepared the Environmenta
r: pH6-8.5 Total Total
ammonia product plant l Quality
indirectly nitrogen nitrog
nitrogen workshop, and 1 Standards for
discharge 42.3t/a en
(NH3-N), canteen, at the Surface Water
d” ” 42.3t/
total boiler north (GB3838-
a
nitrogen (in room, and west 2002),
N), total 1 side of Comprehensiv
phosphorus wastewate the e Discharge
(in P), r plant Standard for
suspended discharge Water
solids, outlet: Waste Pollutants in
BOD5, flow comprehe water: Watersheds
rate, animal nsive north Part 5:
and wastewate west Peninsula
vegetable r side” Watershed
oil, total discharge (DB37/3416.5
coliform outlet) -2018), Water
groups. Pollutant
Discharge
Standards for
Meat
Processing
Industry
68
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
(GB13457-
92), Water
Quality
Standard for
Farmland
Irrigation
(GB5084-
2005)
”
“Waste gas:
ammonia
(ammonia
gas), “Emission
hydrogen Standards for
sulfide, odor Air Pollutants
concentratio from Boilers
“Wast
n, sulfur (GB 13271-
e gas:
dioxide, 2014),
northe
nitrogen Odor
ast
oxides, Pollutant
side
particulate Discharge
and
matter, Standards “COD
south
dyeing and (GB 14554- cr:
west
finishing 93), “COD 9.358t
side of
fumes Comprehensiv cr: /a
the
Xiaoyi Wastewater: e Emission 9.358t/a NH3-
“Directly 4 (3 for plant
New COD, pH Standards for NH3-N: N:
discharge waste gas, “NH3-N: 5
Hope value, Air Pollutants 0.936t/a 0.936t Non
d after 1 for Waste COD: 50
Liuhe dissolved (GB16297- /a e
treatment wastewate water: ”
Food Co., total solids, 1996), Nitroge
” r) Xiaoh
Ltd. ammonia Environmenta n oxides Nitrog
e
nitrogen l Quality 0.37t/a en
discha
(NH3-N), Standards for ” oxides
rge
total Surface Water 0.37t/
outlet
nitrogen (in (GB3838- a”
at the
N), total 2002),
south
phosphorus Pollutant
side
(in P), Discharge
outsid
suspended Standards for
e the
solids, Urban Sewage
plant
BOD5, flow Treatment
rate, animal Plants (GB
and 18918-2002)
vegetable ”
oil, total
coliform
groups.
“Waste gas: “Waste ” “Odor “COD “COD
ammonia gas: COD: 500mg/L Pollutant cr: cr:
(ammonia directly “Nort TN: 70mg/L Discharge 139.59t/ 139.5
Yishui
gas), odor discharge hwest NH3-N: Standards a 9t/a
New
concentratio d after side of 45mg/L (GB 14554- NH3-N: NH3-
Hope Non
n, hydrogen treatment 1 the TP: 8mg/L 93), 2.8t/a N:
Liuhe e
sulfide Wastewate plant pH: 6-8.5 Water Quality Total 2.8t/a
Food Co.,
Wastewater: r: SS: 200mg/L Standards for nitrogen Total
Ltd.
COD, pH indirectly ” BOD5: Sewage 73.58t/a nitrog
value, discharge 250mg/L Discharged Total en
dissolved d Animal and into Urban phospho 73.58t
69
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
total solids, ” vegetable oil: Sewers (GB/T rus /a
ammonia 50mg/L 31962- 8.41t/a Total
nitrogen 2015),/, Water ” phosp
(NH3-N), ” Pollutant horus
total Discharge 8.41t/
nitrogen (in Standards for a
N), total Meat ”
phosphorus Processing
(in P), Industry
suspended (GB13457-
solids, 92)
BOD5, flow ”
rate, animal
and
vegetable
oil, total
coliform
groups.
“Pollutant
Discharge
Standards for
“Waste gas: Urban Sewage
ammonia Treatment
(ammonia Plants
gas), odor (GB18918-
concentratio 2002)
n, hydrogen Water
sulfide, Pollutant
fumes Discharge
“COD
Wastewater: Standards for
8 (2 boiler cr:
COD, pH “Waste Meat
discharge 8.115t
value, gas: Processing “COD
outlets, 4 ” /a
dissolved directly Industry cr:
odor “Nort COD: 50 mg/L NH3-
total solids, discharge (GB13457- 8.115t/a
discharge hwest BOD5: 10mg/L N:
Guantao ammonia d after 92) NH3-N:
outlets, 1 side of NH3-N: 5mg/L 0.812t
Liuhe nitrogen treatment Water Quality 0.812t/a Non
fume the SS: 10mg/L /a
Food Co., (NH3-N), Wastewate Standard for SO2: e
outlet and plant Animal and SO2:
Ltd. total r: Farmland 2.276t/a
1 vegetable oil: 2.276t
nitrogen (in indirectly Irrigation NOx:
wastewate ” 1mg/L /a
N), total discharge (GB5084- 6.829t/a
r ” NOx:
phosphorus d 2005) ”
discharge 6.829t
(in P), ” Emission
outlet) /a
suspended Standards for
”
solids, Air Pollutants
BOD5, flow from Boilers
rate, animal (GB13271-
and 2014)
vegetable Catering
oil, total Industry Fume
coliform Emission
groups. Standards
(Tentative)
(GB18483-
2001)”
Binzhou Waste gas: “Waste 4 (3 for “Wast ” “Odor “COD
Not
Liuhe ammonia gas: waste gas, e gas: COD: 50 mg/L Pollutant 11.85t/a Non
applic
Longda (ammonia directly 1 for east BOD5: 10mg/L Discharge e
able
Farming gas), discharge wastewate side of NH3-N: 5mg/L Standards NH3-N:
70
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Co., Ltd. hydrogen d after r) the SS: 10mg/L (GB 14554- 0.65t/a
sulfide, odor treatment plant Animal and 93)
concentratio Wastewate Waste vegetable oil: Emission ”
n, r: water: 1mg/L Standards for
particulate indirectly west ” Air Pollutants
matter, discharge side of from Boilers
sulfur d the (DB37/2374-
dioxide, ” plant 2018)
Ringelman Emission
blackness, ” Standards for
nitrogen Air Pollutants
oxide from Boilers
Wastewater: (GB13271-
COD, pH 2014)
value, Water
dissolved Pollutant
total solids, Discharge
ammonia Standards for
nitrogen Meat
(NH3-N), Processing
total Industry (GB
nitrogen (in 13457-92)
N), total Water Quality
phosphorus Standards for
(in P), Sewage
suspended Discharged
solids, into Urban
BOD5, flow Sewers (GB/T
rate, animal 31962-2015)”
and
vegetable
oil, total
coliform
groups.
“Waste gas:
odor
concentratio
n, hydrogen
sulfide,
ammonia “Odor
(ammonia “Waste “COD: Pollutant “COD
gas) gas: 500mg/L Discharge cr:
“COD
Wastewater: directly TN: 70mg/L Standards 189t/a
cr:
COD, discharge NH3-N: (GB 14554- NH3-
Wudi 189t/a
ammonia d after 45mg/L 93) N:
Liuhe South NH3-N:
nitrogen treatment pH: 6-8.5 Water 17.01t Non
Xinyang 1 of the 17.01t/a
(NH3-N), Wastewate SS: 300mg/L Pollutant /a e
Food Co., plant Total
total r: BOD5: Discharge Total
Ltd. nitrogen
nitrogen indirectly 250mg/L Standards for nitrog
26.46t/a
(N), BOD5, discharge Animal and Meat en
”
pH value, d vegetable oil: Processing 26.46t
suspended ” 50mg/L” Industry (GB /a
solids, 13457-92)”
coliform
groups,
animal and
vegetable
oil”
71
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
“Waste gas:
hydrogen
“Odor
sulfide,
Pollutant
ammonia
Discharge
(ammonia
Standards
gas), odor
“COD: (GB 14554-
concentratio Sewag
“Waste 500mg/L 93)
n e
gas: TN: 70mg/L Water Quality
Wastewater: discha “COD:1
directly NH3-N: Standards for
COD, rge 8t/a,
discharge 45mg/L Sewage
Zouping ammonia outlet NH3-N:
d after TP: 8mg/L Discharged Not
Liuhe nitrogen at the 2.6t/a, Non
treatment 1 pH: 6-8.5 into Urban applic
Livestock (NH3-N), northe TP: e
Wastewate SS: 200mg/L Sewers (GB/T able
Co., Ltd. total ast 0.3t/a,
r: BOD5: 31962-2015),
nitrogen corner TN:
indirectly 250mg/L Water
(N), pH of the 4.8t/a”
discharge Animal and Pollutant
value, Comp
d” vegetable oil: Discharge
animal and any
50mg/L” Standards for
vegetable
Meat
oil, BOD5,
Processing
suspended
Industry (GB
solids,
13457-92)”
coliform
groups”
“Waste gas: “Emission
ammonia Standards for
(ammonia Air Pollutants
gas), from Boilers
hydrogen (DB37 2374-
sulfide, odor 2018),
concentratio Odor
n, sulfur Pollutant
dioxide, Discharge
nitrogen “Wast Standards
oxides, e gas: “COD: (GB 14554-
particulate north 500mg/L 93),
“Waste
matter, west TN: 70mg/L Ultra-low “COD
gas:
Ringelman side of NH3-N: Emission No. :405t/
directly
Shan blackness the 21mg/L 2 “COD:4 a,
discharge 4 (3 for
County Wastewater: plant TP: 8mg/L Modification 05t/a, NH3-
d after waste gas,
Liuhe COD, pH Waste pH: 6-8.5 List to NH3-N: N: Non
treatment 1 for
Feed Co., value, water: SS: 300mg/L Shandong 28.35t/a, 28.35t e
Wastewate wastewate
Ltd. Food dissolved northe BOD5: Emission TN: /a,
r: r)
Branch total solids, ast 250mg/L Standards for 94.5t/a” TN:
indirectly
ammonia side of Total salt Air Pollutants 94.5t/
discharge
nitrogen the content: from Boilers a”
d”
(NH3-N), plant 1600mg/L (L.Z.J.B.F.
total ” [2016] No.
nitrogen (in ” 46),
N), total Comprehensiv
phosphorus e Emission
(in P), Standards for
suspended Air Pollutants
solids, (GB16297-
BOD5, flow 1996),
rate, animal Water Quality
and Standards for
vegetable Sewage
72
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
oil, total Discharged
coliform into Urban
groups. Sewers (GB/T
31962-2015),
Notice on
Approval and
Release of the
Modification
List to 4
Standards
including the
Comprehensiv
e Discharge
Standards for
Water
Pollutants
Along the
South-to-
North Water
Diversion
Project in
Shandong
Province
(L.Z.J.B.F.
[2011] No.
35),
Notice on
Approval and
Release of the
Modification
List to Add
Total Salt
Content Index
Limit in 4
Standards
including the
Comprehensiv
e Discharge
Standards for
Water
Pollutants
Along the
South-to-
North Water
Diversion
Project in
Shandong
Province
(L.Z.J.B.F.
[2014] No.
7)”
“Waste gas: “Waste “COD: “Odor
Cao hydrogen gas: 300mg/L Pollutant “COG: COD:
West
County sulfide, odor directly NH3-N: Discharge 15.84T/ 16T/a;
side of Non
Liuhe concentratio discharge 1 21mg/L Standards a NH3-
the e
Food Co., n, ammonia d after pH: 6-8.5 (GB 14554- NH3-N: N:
plant
Ltd. (ammonia treatment SS: 300mg/L 93) 7.04T/a” 8T/a”
gas) Wastewate BOD5: Water Quality
73
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Wastewater: r: 250mg/L Standards for
COD, indirectly Animal and Sewage
ammonia discharge vegetable oil: Discharged
nitrogen d” 50mg/L” into Urban
(NH3-N), Sewers (GB/T
suspended 31962-2015),
solids, Water
BOD5, Pollutant
animal and Discharge
vegetable Standards for
oil, total Meat
coliform Processing
groups” Industry (GB
13457-92)”
“Odor
Pollutant
“Waste gas: Discharge
odor Standards
concentratio (GB 14554-
n, ammonia 93)
(ammonia Comprehensiv
gas), e Emission
hydrogen Standards for
sulfide, Air Pollutants
particulate “Wast (GB16297-
matter, foul e gas: 1996),
“Waste “COD
smell south Water
gas: :
Wastewater: and Pollutant
directly 45.56t
Jiaxiang COD, east Discharge COD:
discharge 5 (4 for /a,
New ammonia sides Standards for 41.36t/a,
d after waste gas, COD: 230mg/L, NH3-
Hope nitrogen of the Meat NH3-N: Non
treatment 1 for NH3-N: 8mg/l, N:
Liuhe (NH3-N), plant Processing 2.8t/a, e
Wastewate wastewate TN: 11mg/L 3.96t/
Food Co., total Waste Industry (GB TN:
r: r) a,
Ltd. nitrogen (in water: 13457-92), 76t/a
indirectly TN:
N), total west Water Quality
discharge 88.83t
phosphorus side of Standards for
d” /a”
(in P), pH the Sewage
value, plant” Discharged
suspended into Urban
matter, Sewers (GB/T
BOD5, 31962-
animal and 2015),/,Comp
vegetable rehensive
oils, Sewage
coliform Discharge
groups” Standards
(GB8978-
1996)”
“Waste gas: “Waste “Wast “Emission
odor gas: e gas: Standards for
“COD
concentratio directly north Air Pollutants
2 (1 for :
Yuncheng n, ammonia discharge side of from Boilers “COD:
waste gas, COD: 34.4mg/l, 32.4t/
Liuhe (ammonia d after the (DB37 2374- 6.5t/a, Non
1 for NH3-N: a,
Food Co., gas), treatment plant 2018), NH3-N: e
wastewate 1.03mg/l NH3-
Ltd. hydrogen Wastewate Waste Odor 0.5t/a”
r) N:
sulfide, r: water: Pollutant
5.4t/a”
particulate indirectly west Discharge
matter, foul discharge side of Standards
74
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
smell d” the (GB 14554-
Wastewater: plant” 93),
COD, Comprehensiv
ammonia e Emission
nitrogen Standards for
(NH3-N), Air Pollutants
total (GB 16297-
nitrogen (in 1996),
N), total Comprehensiv
phosphorus e Discharge
(in P), pH Standards for
value, Water
suspended Pollutants
matter, Along the
BOD5, South-to-
animal and North Water
vegetable Diversion
oils, Project in
coliform Shandong
groups” Province
(DB37/ 599－
2006),
Modification
List to Add
Total Nitrogen
Limit in 4
Standards
including the
Comprehensiv
e Discharge
Standards for
Water
Pollutants
Along the
South-to-
North Water
Diversion
Project in
Shandong
Province
(DB37/599-
2006)”
“Waste gas: “SS: 300mg/L “Emission
particulate “Wast Coliform Standards for
matter, e gas: groups: 10000/L Air Pollutants
“Waste
sulfur north NH3-N: from Boilers
gas:
dioxide, west 30mg/L (GB 13271- “COD
directly
nitrogen side of BOD5: 2014), :
discharge 2 (1 for
Anshan oxides, the 250mg/L Odor “COD: 153t/a
d after waste gas,
Liuhe exhaustion plant pH: 6.0-8.5 Pollutant 153t/a, , Non
treatment 1 for
Food Co., blackness, Waste Total dissolved Discharge NH3-N: NH3- e
Wastewate wastewate
Ltd. mercury and water: solids: Standards 15.3t/a” N:
r: r)
its east 2000mg/L (GB 14554- 15.3t/
indirectly
compounds, side of Animal and 93), a”
discharge
hydrogen the vegetable oil: Comprehensiv
d”
sulfide, odor plant” 50mg/L e Emission
concentratio COD: Standards for
n, ammonia 450mg/L” Air Pollutants
75
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Wastewater: (GB16297-
pH value, 1996),
COD, total Comprehensiv
dissolved e Sewage
solids, flow Discharge
rate, Standards
ammonia (DB 21/1627-
nitrogen 2008),
(NH3-N), Water
suspended Pollutant
solids, Discharge
BOD5, Standards for
animal and Meat
vegetable Processing
oil, coliform Industry (GB
groups 13457-92),
Water Quality
Standards for
Sewage
Discharged
into Urban
Sewers (GB/T
31962-2015)”
“Waste gas:
particulate
matter,
sulfur “Emission
dioxide, Standards for
nitrogen Air Pollutants
oxides, from Boilers
exhaustion (GB 13271-
blackness, 2014),/
mercury and “Wast Odor
its e gas: “SS: 20mg/L Pollutant
compounds, “Waste north Coliform Discharge
“COD
hydrogen gas: west groups: 10000/L Standards
:
sulfide, odor directly side of BOD5: 10mg/L (GB 14554- “COD:
2 (1 for 45t/a,
Panjin concentratio discharge the NH3-N: 8mg/L 93) 45t/a,
waste gas, NH3-
Liuhe n, ammonia d after plant COD: 50mg/L Comprehensiv NH3-N: Non
1 for N:
Farming Wastewater: treatment Waste Animal and e Sewage 7.2t/a e
wastewate 7.2t/a
Co., Ltd. pH value, Wastewate water: vegetable oil: Discharge TN:
r) TN:
COD, total r: directly northe 20mg/L Standards 13.5t/a”
13.5t/
dissolved discharge ast pH: 6.0-8.5 (DB 21/1627-
a”
solids, flow d” side of TN (in N): 2008),
rate, the 15mg/L” Water
ammonia plant” Pollutant
nitrogen Discharge
(NH3-N), Standards for
suspended Meat
solids, Processing
BOD5, Industry (GB
animal and 13457-92)”
vegetable
oil, coliform
groups
Dong’e “Waste gas: “Waste 2 (1 for “Wast “NH3-N: 4.32 “Odor COD:13 Not
Non
Liuhe particulate gas: waste gas, e gas: mg/L, Pollutant .100000 applic
e
Lvjia matter, directly 1 for northe COD cr: Discharge t/a; able
76
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Food Co., sulfur discharge wastewate ast 49mg/L Standards NH3-N:
Ltd. dioxide, d after r) side of Odor: 724 (GB 14554- 1.30000
nitrogen treatment the ” 93), 0t/a; TP:
oxides, Wastewate plant Notice on the 0.20000
exhaustion r: Waste Implementatio 0t/a;
blackness, indirectly water: n of Special TN:
mercury and discharge northe Emission 13.5000
its d” ast Limits of Air 00t/a
compounds, side of Pollutants in
hydrogen the Beijing-
sulfide, odor plant” Tianjin-Hebei
concentratio Air Pollution
n, ammonia Transmission
Wastewater: Channel
pH value, Cities
COD, total (Ministry of
dissolved Environmenta
solids, flow l Protection
rate, Notice No. 9,
ammonia 2018)
nitrogen Notice on
(NH3-N), Approval and
suspended Release of the
solids, Modification
BOD5, List to 4
animal and Standards
vegetable including the
oil, coliform Comprehensiv
groups e Discharge
Standards for
Water
Pollutants
Along the
South-to-
North Water
Diversion
Project in
Shandong
Province
(L.Z.J.B.F.
[2011] No.
35),
Water
Pollutant
Discharge
Standards for
Meat
Processing
Industry (GB
13457-92)”
Shen “Waste gas: “Waste “Wast “COD cr: “Odor “COD
County particulate gas: e gas: 50mg/L, Pollutant :
4 (3 for
New matter, directly inside BOD5: 10mg/L, Discharge “COD: 25.2t/
waste gas,
Hope sulfur discharge the NH3-N: 5mg/L, Standards 25.2t/a a Non
1 for
Liuhe dioxide, d after plant Animal and (GB 14554- NH3-N: NH3- e
wastewate
Qingsizha nitrogen treatment Waste vegetable oil: 93), 2.52t/a” N:
r)
i Food oxides, Wastewate water: 3mg/L Modification 2.52t/
Co., Ltd. exhaustion r: north ” List No. 2 to a”
77
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
blackness, indirectly side of Shandong
mercury and discharge the Regional
its d” plant” Comprehensiv
compounds, e Air Pollutant
hydrogen Emission
sulfide, odor Standards
concentratio (DB/372376-
n, ammonia 2013)
Wastewater: (L.Z.J.B.F.
pH value, [2016] No.
COD, total 46)
dissolved Water
solids, flow Pollutant
rate, Discharge
ammonia Standards for
nitrogen Down
(NH3-N), Industry (GB
suspended 21901-2008),
solids, Notice on
BOD5, Approval and
animal and Release of the
vegetable Modification
oil, coliform List to 4
groups Standards
including the
Comprehensiv
e Discharge
Standards for
Water
Pollutants
Along the
South-to-
North Water
Diversion
Project in
Shandong
Province
(L.Z.J.B.F.
[2011] No.
35),
Water
Pollutant
Discharge
Standards for
Meat
Processing
Industry (GB
13457-92)”
“Waste gas: “Waste “Wast “Odor
ammonia gas: e gas: Pollutant “COD
(ammonia directly northe Discharge :
Yanggu 3 (2 for NH3-N: 5mg/L.
gas), discharge ast Standards “COD: 24.6t/
Liuhe waste gas, COD: 40mg/L.
hydrogen d after side of (GB 14554- 24.6t/a a Non
Luxin 1 for TN: 15mg/L.
sulfide, odor treatment the 93), NH3-N: NH3- e
Food Co., wastewate TP: 0.5mg/L
concentratio Wastewate plant Comprehensiv 1.04t/a” N:
Ltd. r) ”
n, r: Waste e Emission 1.04t/
particulate indirectly water: Standards for a”
matter, discharge northe Air Pollutants
78
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
nitrogen d” ast (GB16297-
oxide, sulfur side of 1996),
dioxide, the Notice on the
Ringelman plant” Implementatio
blackness n of Special
Emission
Wastewater: Limits of Air
pH value, Pollutants in
COD, Beijing-
BOD5, Tianjin-Hebei
suspended Air Pollution
matter, Transmission
ammonia Channel
nitrogen Cities
(NH3-N), (Ministry of
total Environmenta
nitrogen (in l Protection
N), total Notice No. 9,
phosphorus 2018)
(in P), Notice on
animal and Approval and
vegetable Release of the
oil, coliform Modification
groups, List to 4
anionic Standards
surfactant” including the
Comprehensiv
e Discharge
Standards for
Water
Pollutants
Along the
South-to-
North Water
Diversion
Project in
Shandong
Province
(L.Z.J.B.F.
[2011] No.
35),
Comprehensiv
e Discharge
Standards for
Water
Pollutants
Along the
South-to-
North Water
Diversion
Project in
Shandong
Province
(DB37/ 599－
2006),
Water
Pollutant
Discharge
79
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Standards for
Meat
Processing
Industry (GB
13457-92),
Water
Pollutant
Discharge
Standards for
Down
Industry (GB
21901-2008)”
“Waste gas:
Shandong
particulate
Regional
matter,
Comprehensiv
hydrogen
e Air Pollutant
sulfide,
Emission
ammonia
Standards
(ammonia
(DB37/2376-
gas), odor
2013),
concentratio
Odor
n, sulfur
Pollutant
dioxide,
Discharge
nitrogen
Standards
oxides, “Wast
“Waste (GB 14554-
Ringelman e gas: “COD
gas: 93),
blackness north :
directly “COD: Emission
side in “COD: 225t/a
discharge 2 (1 for 500mg/L, Standards for
Weifang Wastewater: the 225t/a NH3-
d after waste gas, NH3-N: Air Pollutants
Tianhui COD, plant NH3-N: N: Non
treatment 1 for 45mg/L, from Boilers
Food Co., ammonia Waste 20.25t/a 20.25t e
Wastewate wastewate TP: 8mg/L, (DB37 2374-
Ltd. nitrogen water: TN: /a
r: r) TN: 8mg/L, 2018)
(NH3-N), south 31.5t/a” TN:
indirectly ” Water
total side in 31.5t/
discharge Pollutant
nitrogen (in the a”
d” Discharge
N), total plant”
Standards for
phosphorus
Meat
(in P), pH
Processing
value,
Industry (GB
BOD5,
13457-92),
suspended
Water Quality
solids,
Standards for
animal and
Sewage
vegetable
Discharged
oil, coliform
into Urban
groups,
Sewers (GB/T
anionic
31962-2015)”
surfactant”
“Waste gas: “Waste “Wast “Odor “COD
ammonia gas: e gas: Pollutant “COD: :
(ammonia directly north Discharge 667.7t/a 667.7t
5 (4 for “COD: 70mg/L,
Weifang gas), discharge west Standards NH3-N: /a
waste gas, NH3-N:
HeshengY hydrogen d after side of (GB 14554- 60.093t/ NH3- Non
1 for 10mg/L,
uan Food sulfide, odor treatment the 93), a N: e
wastewate
Co., Ltd. concentratio Wastewate plant, Catering TN: 60.09
r) ”
n, fumes, r: east Industry Fume 93.478t/ 3t/a
Ringelman indirectly side in Emission a” TN:
blackness, discharge the Standards 93.47
80
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
particulate d” plant (DB37/ 597- 8t/a”
matter, Waste 2006)，
sulfur water: Emission
dioxide, northe Standards for
nitrogen ast Air Pollutants
oxides side of from Boilers
Wastewater: the (DB37 2374-
COD, plant” 2018)
ammonia Water
nitrogen Pollutant
(NH3-N), Discharge
total Standards for
nitrogen (in Meat
N), total Processing
phosphorus Industry (GB
(in P), pH 13457-92),
value, Water Quality
suspended Standards for
solids, Sewage
BOD5, Discharged
coliform into Urban
groups, Sewers (GB/T
animal and 31962-2015)”
vegetable
oil”
“Catering
“Waste gas:
Industry Fume
ammonia
Emission
(ammonia
Standards
gas), odor
(GB18483-
concentratio
2001),
n, hydrogen “COD: 70mg/L
Odor
sulfide, “Wast NH3-N:
Pollutant
fume “Waste e gas: 15mg/L
Discharge
gas: east pH: 6-8.5
Standards
Wastewater: directly side of TP: 0.5mg/L
(GB 14554- “COD
Luoyang COD, discharge 2 (1 for the SS: 60mg/L
93) “COD: : 10t/a
Liuhe ammonia d after waste gas, plant BOD5: 25mg/L
Water 10t/a NH3- Non
Huiquan nitrogen treatment 1 for Waste Animal and
Pollutant NH3-N: N: e
Food Co., (NH3-N), Wastewate wastewate water: vegetable oil:
Discharge 2.43t/a” 2.43t/
Ltd. total r: r) south 15mg/L
Standards for a”
phosphorus indirectly west Coliform
Meat
(in P), pH discharge side of groups: 5000 /L
Processing
value, d” the Fume:
Industry (GB
BOD5, plant” 2.0mg/Nm
13457-92),
suspended ”
Comprehensiv
solids,
e Sewage
animal and
Discharge
vegetable
Standards
oil, coliform
(GB8978-
groups.
1996)”
“Waste gas: COD:
COD: COD:
Hebi odor North COD: 64.12
350mg/L， 14.6415
Liuhe concentratio Indirectly east 45mg/L，NH3- 32t//a
NH3-N: t//a， Non
Zhizhen n, ammonia discharge 1 corner N: 0.5mg/L， ，
35mg/L，TP: NH3-N: e
Food Co., (ammonia d of the TP: 4mg/L， NH3-
4mg/L，TN: 1.3359t/
Ltd. gas), plant TN: 35mg/L, N:
45mg/L, a
hydrogen 10.68
81
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
sulfide 72t/a
Wastewater:
COD,
ammonia
nitrogen
(NH3-N),
pH value,
suspended
solids,
BOD5,
animal and
vegetable
oil, coliform
groups, total
nitrogen(in
N), total
phosphorus
(in P)”
“Waste gas:
sulfur
“Odor
dioxide,
Pollutant
nitrogen
Discharge
oxides, dust,
Standards
ammonia
“COD: (GB 14554-
(ammonia
500mg/L 93),
gas),
NH3-N: Ultra-low “COD
hydrogen
“Wast 45mg/L Emission No. :
sulfide, odor “Waste “COD:
e gas: TN: 70mg/L 2 675t/a
concentratio gas: 675t/a
north pH: 6.5-9.5 Modification NH3-
n directly NH3-N:
Laiwu side of TP: 8mg/L List to N:
discharge 7 (6 for 60.75t/a
New the SS: 400mg/L Shandong 60.75t
Wastewater: d after waste gas, PM:
Hope plant BOD5: Emission /a Non
COD, treatment 1 for 0.2t/a
Liuhe Waste 350mg/L Standards for PM: e
ammonia Wastewate wastewate SO2:
Food Co., water: Animal and Air Pollutants 0.2t/a
nitrogen r: r) 0.1t/a
Ltd. north vegetable oil: from Boilers SO2:
(NH3-N), indirectly NOx:
side of 100mg/L (L.Z.J.B.F. 0.1t/a
pH value, discharge 0.406t/a
the NOx: [2016] No. NOx:
BOD5, total d” ”
plant” 200mg/Nm 46), 0.406t
nitrogen (in
SO2: 50mg/Nm Water Quality /a”
N), total
Dust: Standards for
phosphorus
10mg/Nm” Sewage
(in P),
Discharged
animal and
into Urban
vegetable
Sewers (GB/T
oil,
31962-2015)”
suspended
solids”
“Waste gas: “Waste “Wast “COD: “Emission
sulfur gas: e gas: 500mg/L Standards for
dioxide, directly north NH3-N: Air Pollutants
Dezhou 3 (2 for
nitrogen discharge side of 45mg/L from Boilers
Liuhe waste gas,
oxides, dust, d after the TN: 70mg/L (DB37 2374- COD: COD: Non
Zhikang 1 for
ammonia treatment plant pH: 6.0-8.5 2018), 23.3t 23.3t e
Food Co., wastewate
(ammonia Wastewate Waste TP: 8mg/L Emission
Ltd. r)
gas), r: water: SS: 300mg/L Standards for
hydrogen indirectly west BOD5: Air Pollutants
sulfide, odor discharge side of 250mg/L from Boilers
82
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concentratio d” the Animal and (GB 13271-
n plant” vegetable oil: 2014),
50mg/L Odor
Wastewater: Ringelman Pollutant
COD, blackness: level Discharge
ammonia 1 Standards
nitrogen NOx: (GB 14554-
(NH3-N), 150mg/Nm 93)
pH value, SO2: 50mg/Nm Water Quality
BOD5, total Dust: Standards for
nitrogen (in 10mg/Nm” Sewage
N), total Discharged
phosphorus into Urban
(in P), Sewers (GB/T
animal and 31962-2015),
vegetable Water
oil, Pollutant
suspended Discharge
solids” Standards for
Meat
Processing
Industry (GB
13457-92)”
“Odor
Pollutant
Discharge
Standards
(GB 14554-
“Waste gas:
93),
odor
Notice on
concentratio
Approval and
n, ammonia
Release of the
(ammonia
Modification
gas),
List to 4
hydrogen “COD: 50mg/L
Standards
sulfide NH3-N: 5mg/L “COD
including the
TP: 0.3mg/L :
Comprehensiv
Wastewater: pH: 6-8.5 “COD: 11.6t/a
e Discharge
Fei COD, SS: 20mg/L 11.6t/a NH3-
Standards for
County ammonia South TN: 20mg/L NH3-N: N:
Indirectly Water
Liuhe nitrogen side of BOD5: 10mg/L 1.16t/a 1.16t/ Non
discharge 1 Pollutants
Huahai (NH3-N), the Animal and TN: a e
d Along the
Food Co., pH value, plant vegetable oil: 14t/a TN:
South-to-
Ltd. suspended 3mg/L TP: 14t/a
North Water
solids, Coliform 0.63t/a” TP:
Diversion
BOD5, groups: 10000 0.63t/
Project in
animal and /L a”
Shandong
vegetable ”
Province
oil, coliform
(L.Z.J.B.F.
groups, total
[2011] No.
nitrogen(in
35),
N), total
Water
phosphorus
Pollutant
(in P)”
Discharge
Standards for
Meat
Processing
Industry (GB
83
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13457-92),
Comprehensiv
e Discharge
Standards for
Water
Pollutants
Along the
South-to-
North Water
Diversion
Project in
Shandong
Province
(DB37/ 599－
2006),
Modification
List to Add
Total Nitrogen
Limit in 4
Standards
including the
Comprehensiv
e Discharge
Standards for
Water
Pollutants
Along the
South-to-
North Water
Diversion
Project in
Shandong
Province
(DB37/599-
2006)”
“Waste gas: “Emission
nitrogen Standards for
oxides, Air Pollutants
fume from Boilers
blackness, “Wast (GB 13271-
particulate e gas: 2014),
“COD:
matter, “Waste north Odor
300mg/L
sulfur gas: west Pollutant
NH3-N: “COD
dioxide, directly and Discharge
Fuxin 30mg/L cr:
ammonia discharge 3 (2 for south Standards “COD
Liuhe pH: 6-8.5 78.61t
(ammonia d after waste gas, side of (GB 14554- cr:
Farming SS: 300mg/L /a Non
gas), treatment 1 for the 93) 78.61t/a
Co., Ltd. BOD5: NH3- e
hydrogen Wastewate wastewate plant Water NH3-N:
Food 250mg/L N:
sulfide, odor r: r) Waste Pollutant 7.86t/a”
Branch Animal and 7.86t/
concentratio indirectly water: Discharge
vegetable oil: a”
n discharge west Standards for
50mg/L
Wastewater: d” side of Meat
”
COD, the Processing
suspended plant” Industry (GB
solids, 13457-92),
ammonia Comprehensiv
nitrogen e Sewage
(NH3-N), Discharge
84
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
pH value, Standards
BOD5, (DB 21/1627-
animal and 2008)”
vegetable
oil, coliform
groups”
Waste gas:
ammonia
(ammonia Emission
gas), Standards for
hydrogen “Wast Air Pollutants
sulfide, odor e gas from Boilers
concentratio emissi (GB 13271-
n, on 2014)
particulate outlet:
matter, at the Henan
nitrogen sewag Comprehensiv
“Waste
oxides, e “NH3-N: e Boiler
gas:
sulfur treatm 150mg/m Improvement
Taiqian directly
dioxide, ent SO2: 50mg/m Plan 2019
New discharge 4 (3 for
Ringelman station Dust: 20 mg/m “COD:
Hope d after waste gas,
blackness in the Benchmark Odor 236t/a; Non
Liuhe treatment 1 for None
Wastewater: north oxygen content: Pollutant NH3-N: e
Luxin Wastewate wastewate
COD, west 3.5% Discharge 2.3t/a”
Food Co., r: r)
ammonia corner Fume Standards
Ltd. indirectly
nitrogen of the blackness: level (GB 14554-
discharge
(NH3-N), plant. 1” 93)
d”
total Waste
phosphorus water Water
(in P), pH discha Pollutant
value, rge Discharge
BOD5, outlet Standards for
suspended Meat
solids, ” Processing
animal and Industry (GB
vegetable 13457-92)
oil, coliform
groups
Waste gas: “Wast “Odor
ammonia e gas Pollutant
(ammonia emissi Discharge
“COD:
gas), on Standards
500mg/L
hydrogen outlet: (GB 14554- “COD
“Waste NH3-N:
sulfide, odor sewag 93); :
gas: 45mg/L
concentratio e Water Quality 9.31t/
directly TP: 8mg/L “COD:
n; treatm Standards for a
Laoting discharge 3 (2 for pH: 6-8.5 9.31t/a
Wastewater: ent Sewage NH3-
Liuhe d after waste gas, SS: 300mg/L NH3-N:
COD, station Discharged N: Non
Xinmeizi treatment 1 for TN: 70mg/L 5.87t/a
ammonia in the into Urban 5.87t/ e
Food Co., Wastewate wastewate BOD5: TN (in
nitrogen, north Sewers (GB/T a
Ltd. r: r) 250mg/L N):
total west 31962-2015), TN (in
indirectly Animal and 40.5t/a”
nitrogen, corner Water N):
discharge vegetable oil:
animal and of the Pollutant 40.5t/
d” 50mg/L
vegetable plant, Discharge a”
oil, and Standards for
”
suspended works Meat
solids, fecal hops. Processing
coliform, Waste Industry (GB
85
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
BOD5 water 13457-92),
discha ”
rge
outlet:
sewag
e
treatm
ent
station
”
“Wast “Odor
e gas Pollutant
discha Discharge
rge Standards
outlet: (GB 14554-
Waste gas:
sewag 93);
ammonia
e Emission
(ammonia
treatm Standards for
gas),
ent Air Pollutants
hydrogen
station from Boilers
sulfide, odor “Waste
Qixia in the (DB37 2374-
concentratio gas:
Refrigerat northe 2018) “COD
n; directly
ion ast “COD: 50mg/L Comprehensiv :
Wastewater: discharge 4 (3 for “COD:
Factory of corner NH3-N: 5mg/L e Discharge 14.4t/
COD, d after waste gas, 14.4t/a
Shandong of the pH: 6-9 Standards for a Non
ammonia treatment 1 for NH3-N:
New plant, Water NH3- e
nitrogen, Wastewate wastewate 1.5t/a
Hope works Pollutants in N:
total r: r) ”
Liuhe hops. ” Shandong 1.5t/a
nitrogen, indirectly
Group Waste Peninsula ”
animal and discharge
Co., Ltd. water Watershed
vegetable d”
discha (DB37/676-
oil,
rge 2007),
suspended
outlet: Water
solids, fecal
sewag Pollutant
coliform,
e Discharge
BOD5
treatm Standards for
ent Meat
station Processing
Industry (GB
” 13457-92)”
“Waste gas: “Wast “Ultra-low
odor e gas: Emission No.
concentratio north 2
n, ammonia “Waste side of Modification
“COD
(ammonia gas: the List to
cr:
gas), directly plant, Shandong
3.03t/a
hydrogen discharge 2 (1 for within COD: 30mg/l, Emission
Laiyang NH3-N:
sulfide, d after waste gas, the NH3-N: Standards for
Tianye 3.02t/a Non
sulfur treatment 1 for plant 1.5mg/l, TP: Air Pollutants None
Food Co., TN: e
dioxide, Wastewate wastewate 0.5mg/l, TN: from Boilers
Ltd. 3.32t/a
nitrogen r: r) Waste 15mg/l, pH6-9 (L.Z.J.B.F.
TP:
oxides, indirectly water: [2016] No.
0.016t/a
particulate discharge west 46),
"
matter, fume d” side of Odor
blackness the Pollutant
(Ringelman Comp Discharge
blackness, any” Standards
86
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
level) (GB 14554-
Wastewater: 93)
COD, Comprehensiv
ammonia e Discharge
nitrogen Standards for
(NH3-N), Water
pH value, Pollutants in
suspended Shandong
solids, Peninsula
BOD5, Watershed
animal and (DB37/676-
vegetable 2007),
oil, coliform Water
groups, total Pollutant
nitrogen (in Discharge
N)” Standards for
Meat
Processing
Industry (GB
13457-92)”
“Water
Quality
“Waste gas: Standards for
nitrogen Sewage
oxides, Discharged
particulate into Urban
matter, Sewers
“Wast
sulfur (GB/T31962-
e gas:
dioxide, “COD: 2015), Water
west
hydrogen 350mg/L Pollutant
side of
sulfide, TN: 70mg/L Discharge
the
odor NH3-N: Standards for
plant
concentratio 45mg/L Meat
of the
n, TP: 8mg/L Processing
“Waste Comp
Ringelman pH: 6-8.5 Industry
gas: any
blackness SS: 256mg/L (GB123457- “COD
directly and
BOD5: 92), “COD: :
Tai'an discharge 6 (5 for inside
Wastewater: 150mg/L Odor 533.05t/ 533.0
Taishan d after waste gas, the
COD, Animal and Pollutant a; 5t/a; Non
Liuhe treatment 1 for Comp
ammonia vegetable oil: Discharge NH3-N: NH3- e
Food Co., Wastewate wastewate any
nitrogen 50mg/L Standards 45.69t/a N:
Ltd. r: r)
(NH3-N), Sulfur (GB 14554- ” 45.69t
indirectly Waste
total hydrogen: 93), /a”
discharge water:
nitrogen, 0.1mg/nm Modification
d” west
total Ammonia: List No. 2 to
side of
phosphorus, 2mg/nm Shandong
the
pH value, PM: 10mg/nm Regional
west
BOD5, SO2: 50mg/nm Comprehensiv
gate to
suspended NOx: e Air Pollutant
the
solids, 100mg/nm Emission
Comp
animal and Standards
any”
vegetable (DB/372376-
oil, coliform 2013)
groups, (L.Z.J.B.F.
anionic [2016] No.
surfactant” 46), Emission
Standards for
Air Pollutants
87
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
from Boilers
(DB37/2374-
2018)
”
“Waste gas:
ammonia
(ammonia
gas),
hydrogen
sulfide, odor “Emission
concentratio Standards for
n, sulfur Air Pollutants
dioxide, from Boilers
nitrogen (DB37 2374-
“Wast “COD
oxides, 2018),
e gas: cr:
particulate Odor
east 8.68t/
matter, Pollutant “COD
“Waste side of a
Ringelman Discharge cr:
gas: the NH3-
blackness “Ammonia Standards 8.68t/a
Shandong directly Comp N:
Wastewater: nitrogen 45mg/l (GB 14554- NH3-N:
New discharge any’s 0.68t/
COD, pH 3 (2 for COD 500mg/l 93) 0.68t/a
Hope d after plant a
value, waste gas, Total Water Quality Total
Liuhe treatment Total Non
dissolved 1 for phosphorus Standards for phospho
Group Wastewate Waste phosp e
total solids, wastewate 8mg/l Sewage rus
Co., Ltd. r: rwater horus
ammonia r) Total nitrogen Discharged 0.88t/a
Linyi indirectly : 0.88t/
nitrogen 70mg/l into Urban Total
Branch discharge southe a
(NH3-N), ” Sewers (GB/T nitrogen
d ast Total
total 31962-2015), 4.1t/a
” side of nitrog
nitrogen (in Water ”
the en
N), total Pollutant
Comp 4.1t/a
phosphorus Discharge
any” ”
(in P), Standards for
suspended Meat
solids, Processing
BOD5, flow Industry (GB
rate, animal 13457-92)”
and
vegetable
oil, total
coliform
groups.
“Waste gas: “Fume: “Emission “COD
nitrogen “Waste 1.5mg/Nm Standards for :
“Wast
oxides, gas: COD: 500mg/L Air Pollutants 18.45t
e gas:
sulfur directly NH3-N: from Boilers “COD: /a
west
dioxide, discharge 45mg/L (DB37/2374- 18.45t/a NH3-
side of
fume, d after TN: 70mg/L 2018) NH3-N: N:
Qingdao 7 (6 for the
Ringelman treatment pH: 6.5-9.5 Shandong 1.75t/a 1.75t/
Liuhe waste gas, plant
blackness, Wastewate TP: 8mg/L Catering PM: a Non
Wanfu 1 for Waste
ammonia r: SS: 400mg/L Industry Fume 10.5t/a PM: e
Food Co., wastewate water:
(ammonia discharge BOD5: Emission SO2: 10.5t/
Ltd. r) south
gas), odor d into 350mg/L Standards 1.8t/a a
west
concentratio sewerage Animal and (DB37/597- NOx: SO2:
side of
n, sulfur treatment vegetable oil: 2006) 8.55t/a” 1.8t/a
the
hydrogen plant after 100mg/L Odor NOx:
plant”
treatment” NOx: Pollutant 8.55t/
Wastewater: 200mg/Nm Discharge a”
88
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
COD, SO2: 50mg/Nm Standards
ammonia Dust: (GB 14554-
nitrogen 10mg/Nm” 93),
(NH3-N), Shandong
pH value, Province
BOD5, total Regional
nitrogen (in Comprehensiv
N), total e Air Pollutant
phosphorus Emission
(in P), Standards
suspended (DB37/2376-
solids, 2019),
animal and Comprehensiv
vegetable e Air Pollutant
oil, coliform Emission
groups” Standards
(GB16279-
1996)
Water Quality
Standards for
Sewage
Discharged
into Urban
Sewers (GB/T
31962-2015)”
“Waste gas: “Environment
“COD: 40mg/L
nitrogen al Quality
TN: 2mg/L
oxides, Standards for
NH3-N: 2mg/L
particulate Surface Water
TP: 0.4mg/L
matter, (GB3838-
pH: 6-9
sulfur 2002),
SS: 100mg/L
dioxide, Water
BOD5: 10mg/L
hydrogen “Wast Pollutant
Animal and
sulfide, e gas: Discharge
vegetable oil:
odor 9 at Standards for
20mg/L
concentratio feed Meat
Phosphates:
n, “Waste plant, Processing
1mg/L
Ringelman gas: 1 at Industry (GB “COD
Sulfur
blackness directly south 13457-92) :
Fenxi hydrogen:
discharge 4 (3 for west Comprehensiv “COD: 2.90t/
New 0.06mg/nm
Wastewater: d after waste gas, of the e Sewage 2.90t/a a
Hope Ammonia: Non
COD, treatment 1 for factor Discharge NH3-N: NH3-
Liuhe 1.5mg/nm e
ammonia Wastewate wastewate y Standards 0.70t/a N:
Food Co., PM: 1mg/nm
nitrogen, r: r) Waste (GB8978- ” 0.70t/
Ltd. Odor cr: 20
total indirectly water: 1996) a
(dimensionless)
nitrogen, discharge sewag Table 3 Gas ”
SO2: 35mg/nm
total d” e Boiler
NOx: 50mg/nm
phosphorus, treatm Standard of
PM: 5mg/nm
pH value, ent Emission
Ringelman
BOD5, station Standards for
blackness ≤1
suspended ” Air Pollutants
PM: 120mg/nm
solids, from Boilers
3.5kg/h
animal and (DB 14/1929-
Leq: daytime
vegetable 2019)
60dB(A)
oil, coliform Table 1 Level-
Nighttime
groups, flow 2 Standard of
50dB(A)
rate, Odor
”
temperature, Pollutant
89
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phosphates Discharge
Standards
Noise: Leq” (GB14554-
93)
Comprehensiv
e Emission
Standards for
Air Pollutants
(GB16297-
1996),
Boundary
Ambient
Noise
Emission
Standards for
Industrial
Enterprises(G
B12348-2008)
”
“Waste gas:
ammonia
(ammonia
gas),
particulate
matter, fume “Emission
blackness Standards for
(Ringelman Air Pollutants
blackness, from Boilers
level), (DB37 2374-
sulfur 2018)
dioxide, Odor
nitrogen “Wast “COD: Pollutant
oxides, odor “Waste e gas: 500mg/L Discharge
concentratio gas: east TN: 70mg/L Standards
n, sulfur directly side of NH3-N: (GB 14554-
Linyi hydrogen, discharge 2 (1 for the 45mg/L 93)
“COD:
Liuhe Ringelman d after waste gas, plant TP: 8mg/L Water Quality Not
1.7t/a; Non
Hongchen blackness treatment 1 for pH: 6-8.5 Standards for applic
NH3-N: e
g Farming COD, Wastewate wastewate Waste SS: 300mg/L Sewage able
0.3t/a”
Co., Ltd. ammonia r: r) water: BOD5: Discharged
nitrogen indirectly west 250mg/L into Urban
(NH3-N), discharge side of Animal and Sewers (GB/T
total d” the vegetable oil: 31962-2015),
nitrogen (in plant” 50mg/L” Water
N), total Pollutant
phosphorus( Discharge
in P), pH Standards for
value, pH Meat
value, Processing
suspended Industry (GB
solids, 13457-92)”
animal and
vegetable
oil, BOD5,
fecal
coliforms”
Pingyi “Waste gas: “Waste 3 for “Wast “COD: 30mg/L “Odor “COD: “COD Non
Liuhe nitrogen gas: waste gas, e gas: TN: 15mg/L Pollutant 11.49t/a; : e
90
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Fada oxides, directly 1 for west NH3-N: Discharge NH3-N: 11.49t
Food particulate discharge wastewate side of 1.5mg/L Standards 0.57t/a /a;
Co.,Ltd. matter, d after r the TP: 0.3mg/L (GB 14554- TN: NH3-
sulfur treatment plant pH: 6-9 93); 10.13t/a N:
dioxide, Wastewate of the SS: 20mg/L Emission TP: 0.57t/
hydrogen r: directly Comp BOD5: 10mg/L Standards for 0.2t/a” a
sulfide, discharge any Animal and Air Pollutants TN:
odor d after and vegetable oil: from Boilers 10.13t
concentratio treatment” inside 20mg/L (DB37 2374- /a
n, the Sulfur 2018) TP:
Ringelman Comp hydrogen: Comprehensiv 0.2t/a”
blackness any 0.1mg/nm e Discharge
Ammonia: Standards for
Wastewater: Waste 2mg/nm Water
COD, water: PM: 10mg/nm Pollutants in
ammonia south SO2: 50mg/nm Shu River
nitrogen west NOx: Watershed
(NH3-N), sewag 100mg/nm (DB37/3416.2
total e -2018)”
nitrogen, treatm
total ent
phosphorus, station
pH value, outsid
BOD5, e the
suspended Comp
solids, any
animal and
vegetable
oil, coliform
groups,
anionic
surfactant”
“Waste gas: “Wast
hydrogen e gas
“Comprehensi
sulfide, odor emissi
ve Discharge
concentratio on
Standards for
n, ammonia outlet: “Non-methane
Water
(ammonia cantee hydrocarbon
Pollutants
gas), n, (chemical
(DB11/307-
particulate chemi production
“Waste 2013)
matter, non- cal workshop):
gas:
methane produ 50mg/m “COD
directly Comprehensiv
total ction Non-methane “COD: :
discharge 4 (3 for e Emission
Beijing hydrocarbon works hydrocarbon: 186.15t/ 186.1
d after waste gas, Standards for
Kinghey s, fume, hop 10mg/m; a; 5t/a; Non
treatment 1 for Air Pollutants
Food Co., sulfur Fume: NH3-N: NH3- e
Wastewate wastewate (DB11/501-
Ltd. dioxide, Waste 1mg/Nm; 18.615t/ N:
r: r) 2017)
nitrogen water PM10: a” 18.61
indirectly
oxides, discha 5mg/Nm 5t/a”
discharge Catering
Ringelman rge
d” Industry Fume
blackness outlet: COD: 220 ㎎/L,
Emission
Wastewater: south NH3-N: 35 ㎎
Standards
pH value, side of /L, TP: 6 ㎎/L,
(Tentative)
COD, the TN: 50 ㎎/L”
(GB18483-
BOD5, sewag
2001)
suspended e
”
solids, treatm
ammonia ent
91
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nitrogen station
(NH3-N), ”
animal and
vegetable
oil, total
phosphorus
(in P), total
nitrogen (in
N), coliform
groups”
“Waste gas:
hydrogen
“Wast
sulfide,
e gas
ammonia
emissi
(ammonia
on
gas), odor
outlet: “Comprehensi
concentratio
cantee ve Discharge
n, non-
n, Standards for
methane
chemi Water
total
cal Pollutants
hydrocarbon “Odor: 2000
produ (DB11/307-
s, Non-methane
ction 2013)
particulate hydrocarbon
works
matter, (chemical
hop, Volatile “COD
nitrogen production
waitin Organic :
Hebei oxides, 6 (5 for workshop):
g Compounds “COD: 23.63t
Kinghey sulfur Indirectly waste gas, 80mg/Nm
pens, Emission 23.63t/a; /a; Non
Meat dioxide discharge 1 for
deslim Standards for NH3-N: NH3- e
Industry Wastewater: d wastewate
ing Industrial 2.29t/a” N:
Co., Ltd. COD, r) COD: 120 ㎎/L,
room, Enterprises 2.29t/
ammonia NH3-N: 25 ㎎
floatat (DB13/2322- a”
nitrogen, /L, TP: 8 ㎎/L,
ion 2016)
total TN: 75 ㎎/L,
tank
nitrogen, BOD: 60mg/L,
Odor
total SS: 120mg/L”
North Pollutant
phosphorus,
side of Emission
pH value,
the Standards
BOD5,
sewag (GB 14554-
suspended
e 93)”
solids,
treatm
animal and
ent
vegetable
station
oil, coliform
”
groups,
phosphate”
“Waste gas: “Comprehensi
Outlet
ammonia “Waste ve Sewage
of the
(ammonia gas: Discharge
sewag “COD
gas), odor directly Standards
e COD: 300 ㎎/L, :
concentratio discharge (DB 21/1627-
Liaoning treatm NH3-N: 30 ㎎ “COD: 462t/a
n, sulfur d after 2008)
Kinghey ent /L, TP: 5 ㎎/L, 462t/a; ; Non
dioxide, treatment 1 Water
Food Co., station TN: 50 ㎎/L, NH3-N: NH3- e
hydrogen Wastewate Pollutant
Ltd. (north BOD: 250mg/L, 46.2t/a” N:
sulfide, r: Discharge
east SS: 300mg/L 46.2t/
nitrogen indirectly Standards for
corner a”
oxides, discharge Meat
of the
particulate d” Processing
plant)
matter Industry (GB
92
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Wastewater: 13457-92)
COD, Odor
ammonia Pollutant
nitrogen Discharge
(NH3-N), Standards
total (GB 14554-
nitrogen (in 93),
N), total Comprehensiv
phosphorus e Emission
(in P), pH Standards for
value, Air Pollutants
BOD5, (GB16297-
suspended 1996)”
solids,
animal and
vegetable
oil, coliform
groups, flow
rate”
Waste
gas
emissi
on
Waste
outlet:
water:
east of
COD,
the
BOD5,
low-
ammonia “COD: Emission
tempe
nitrogen, 500mg/L Standards for
rature
total NH3-N: Air Pollutants
plant,
phosphorus, 45mg/L from Boilers
south COD:
total Wastewate TN: 70mg/L (GB 13271-
west 11.9t/a
nitrogen, r: pH: 6.0-8.5 2014)
of the TN:
suspended discharge TP: 8mg/L Water Quality
high- 6.3t/a
solids, pH, d into SS: 400mg/L Standards for
tempe NH3-N:
animal and urban BOD5: Sewage
Chengdu rature 3.7t/a
vegetable sewage 300mg/L Discharged
Hope plant TP: Non
oil, coliform treatment 4 Animal and into Urban None
Food Co., Waste 0.3t/a e
groups plant after vegetable oil: Sewers (GB/T
Ltd. water
Waste gas: treatment 60mg/L 31962-2015)
discha NOx:
nitrogen Waste gas: Ringelman Water
rge 0.7t/a
oxides, directly blackness: level Pollutant
outlet:
sulfur discharge 1 Discharge
south SO2:
dioxide, d NOx: Standards for
west 0.2t/a
particulate 150mg/Nm Meat
of the
matter, SO2: 50mg/Nm Processing
low-
Ringelman PM: Industry (GB
tempe
blackness, 20mg/Nm” 13457-92)
rature
hydrogen
plant,
sulfide,
south
ammonia,
of
odor
high-
tempe
rature
plant
Zhejiang “Waste gas: “Waste 1 ” “COD: “Pollutant “COD: “COD
Non
Xindong hydrogen gas: wastewate 380mg/L Discharge 69.41t/a; :
e
wan sulfide, directly r Waste NH3-N: Standards for NH3-N: 69.41t
93
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Agricultu ammonia, discharge discharge water: 70mg/L Livestock and 12.79t/a; /a;
ral odor d after outlet off- TP: 7mg/L Poultry TP: NH3-
Develop concentratio treatment site pH: 6-9 Breeding 1.28t/a” N:
ment Co., n Wastewate enviro SS: 160mg/L Industry in 12.79t
Ltd. r: nment BOD5: Zhejiang /a;
Wastewater: indirectly al 140mg/L (DB33/593- TP:
chemical discharge protec Fecal coliform: 2005) 1.28t/
oxygen d” tion 10000 /L Agreements a”
demand, station Ascaris ova: 2/L with sewage
ammonia of the Odor cr: 60 treatment
nitrogen, Comp Ammonia: 1.5 plants
total any mg/Nm
phosphorus, ” Sulfur Odor
pH value, hydrogen: Pollutant
five-day 0.06mg/Nm Discharge
biochemical ” Standards
oxygen (GB 14554-
demand, 93),
suspended ”
solids,
coliform
bacteria”
“Waste gas: “Pollutant
hydrogen Discharge
sulfide, Standards for
“COD:
ammonia, Livestock and
380mg/L
odor Poultry
NH3-N:
concentratio Breeding
” 70mg/L
n Industry in
Waste TP: 7mg/L
“Waste Zhejiang
water: pH: 6-9
Wastewater: gas: (DB33/593- COD:
off- SS: 160mg/L
chemical directly 2005) 19.57t
site BOD5: COD:
oxygen discharge 1 Agreements /a;
Hangzhou enviro 140mg/L 19.57t/a;
demand, d after wastewate with sewage NH3-
Guanglv nment Fecal coliform: NH3-N: Non
ammonia treatment r treatment N:
Breeding al 10000 /L 3.61t/a; e
nitrogen, Wastewate discharge plants 3.61t/
Co., Ltd. protec Ascaris ova: 2/L TP:
total r: outlet a; TP:
tion Odor cr: 60 0.36t/a.
phosphorus, indirectly Odor 0.36t/
station Ammonia: 1.5
pH value, discharge Pollutant a.
of the mg/Nm
five-day d” Discharge
Comp Sulfur
biochemical Standards
any” hydrogen:
oxygen (GB 14554-
0.06mg/Nm
demand, 93)
suspended
”
solids,
coliform
bacteria” ”
Waste gas: Waste COD: 380mg/L Water
Waste gas:
nitrogen water: TN: 40mg/L Pollutant
directly
oxide, off- NH3-N: Discharge COD:
Rui'an discharge
particulate 1 site 70mg/L Standards for 2.64t/
New d after COD:
matter, wastewate enviro TP: 7mg/L Meat a;
Hope treatment 2.64t/a; Non
sulfur r nment pH: 6-8 Processing NH3-
Liuhe Wastewate NH3-N: e
dioxide, discharge al SS: 160mg/L Industry (GB N:
Farming r: 0.26t/a
hydrogen outlet protec BOD5: 13457-92) 0.26t/
Co., Ltd. indirectly
sulfide, tion 140mg/L Agreements a
discharge
ammonia, station Animal and with sewage
d
odor of the vegetable oil: treatment
94
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concentratio Comp 0.16t/a plants
n any NOx: Odor
150mg/Nm Pollutant
Wastewater: SO2: 50mg/Nm Discharge
chemical Dust: Standards
oxygen 10mg/Nm (GB 14554-
demand, 93),
ammonia Emission
nitrogen, Standards for
total Air Pollutants
nitrogen, from Boilers
total (GB 13271-
phosphorus, 2014),
pH value, Emission
five-day Standards for
biochemical Air Pollutants
oxygen from Boilers
demand, (DB37 2374-
animal and 2018)
vegetable
oil,
suspended
solids,
coliform
groups
Waste gas:
nitrogen
oxide,
particulate
matter,
sulfur Water Quality
dioxide, Standard for
hydrogen Farmland
sulfide, COD: 300mg/L Irrigation (GB
ammonia, TN: 40mg/L 5084-2005),
odor Waste NH3-N: Odor
concentratio water: 70mg/L Pollutant
Waste gas:
n off- TP: 7mg/L Discharge
directly
site pH: 6-8 Standards COD:
Ningbo discharge
Wastewater: 1 enviro SS: 200mg/L (GB 14554- 2.64t/
New d after COD:
chemical wastewate nment BOD5: 93), a;
Hope treatment 2.64t/a; Non
oxygen r al 150mg/L Emission NH3-
Liuhe Wastewate NH3-N: e
demand, discharge protec Animal and Standards for N:
Farming r: 0.26t/a
ammonia outlet tion vegetable oil: Air Pollutants 0.26t/
Co., Ltd. indirectly
nitrogen, station 0.16t/a from Boilers a
discharge
total of the NOx: (GB 13271-
d
nitrogen, Comp 150mg/Nm 2014),
total any SO2: 50mg/Nm Emission
phosphorus, Dust: Standards for
pH value, 10mg/Nm Air Pollutants
five-day from Boilers
biochemical (DB37 2374-
oxygen 2018)
demand,
animal and
vegetable
oil,
suspended
95
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solids,
coliform
groups
Construction and operation of pollution control facilities
Name of Treatment
pollution Time Operational
Company name Treatment process capacity
control commissioned status
facilities
Sewage
Linyi Liuhe Food Co., Anaerobic + aerobic 1,200 cubic Commissioned in Running
treatment
Ltd. (A/O process) meters/day 2015 normally
system
Qiu County Liuhe Sewage
Hydrolytic acidification 1000 cubic Commissioned in Running
KangYuan Food Co., treatment
+ A/O process meters/day 2014 normally
Ltd. system
Sewage
Lanling New Hope Liuhe Anaerobic + aerobic 600 cubic Commissioned in Running
treatment
Hongjun Food Co., Ltd. (A/O process) meters/day 2013 normally
system
Acquired in 1997,
Pingyi Refrigeration
Sewage operated using the
Factory of Shandong Biological contact 1,200 cubic Running
treatment original tanks, and
New Hope Liuhe Group oxidation process meters/day normally
system further improved
Co., Ltd.
in 2002/2004
SBR system was
Sewage commissioned in
Qingdao Tianrun Food SBR process + A/O 2000 cubic Running
treatment 2005, followed by
Co., Ltd. process meters/day normally
system A/O process in
2009
Commissioned in
Sewage 2012, process
Xiaoyi New Hope Liuhe Anaerobic + aerobic 1600 cubic Running
treatment improved in 2016,
Food Co., Ltd. (A/O process) meters/day 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 Co., Anaerobic + aerobic 3400 cubic Running
treatment 2009, and further
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
Commissioned in
Sewage
Zouping Liuhe Livestock Anaerobic + aerobic 1000 cubic 2004 and Running
treatment
Co., Ltd. (A/O process) meters/day transformed and normally
system
upgraded in 2012
Sewage
Shan County Liuhe Feed Hydrolytic acidification 1300 cubic Commissioned in Running
treatment
Co., Ltd. Food Branch + BRN meters/day 2012 normally
system
Sewage
Cao County 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 Sept. 2017
Liuhe Food Co., Ltd. (A/O process) meters/day normally
system
Commissioned in
Sewage 2006, and
Yuncheng Liuhe Food Anaerobic + aerobic 800 cubic Running
treatment transformed and
Co., Ltd. (A/O process) meters/day normally
system upgraded in 2011
and 2017
96
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
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 Food Anaerobic + aerobic 600 cubic Commissioned in Running
treatment
Co., Ltd. (A/O process) meters/day 2010 normally
system
High-efficiency air Commissioned in
Sewage
Liaocheng Liuhe Rongda floatation + Hydrolytic 2500 cubic 2013, and Running
treatment
Farming Co., Ltd. acidification (A/O meters/day accepted in May normally
system
process) 2015
Commissioned in
Shen County New Hope Sewage Combined air floatation
2000 cubic Dec. 2013 and Running
Liuhe Qingsizhai Food treatment + biological contact
meters/day accepted in July normally
Co., Ltd. system oxidation (A/O process)
2014
Contact oxidation
process
Sewage
Yanggu Liuhe Luxin Anaerobic + aerobic 3000 cubic commissioned in Running
treatment
Food Co., Ltd. (A/O process) meters/day 2009, followed by normally
system
A/O process in
2015
Contact oxidation
Sewage process
Weifang Tianhui Food Contact oxidation 700 cubic Running
treatment commissioned in
Co., Ltd. process + SBR meters/day normally
system 2007, followed by
SBR in 2009
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 Food Anaerobic + aerobic 2000 cubic Under
treatment 2011 and
Co., Ltd. (A/O process) meters/day debugging
system upgraded in 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
Fei County 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
Sewage
Taiqian New Hope Liuhe Anaerobic + aerobic 2000 cubic Running
treatment 44105
Luxin Food Co., Ltd. (A/O process) meters/day normally
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
Factory of Shandong Anaerobic + aerobic 1,200 cubic Commissioned in Running
treatment
New Hope Liuhe Group (A/O process) meters/day 2012 normally
system
Co., Ltd.
Sewage Commissioned in
Laiyang Tianye Food 1,200 cubic Running
treatment A/O process 2008, and further
Co., Ltd. meters/day normally
system improved in 2016
97
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
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
Commissioned in
Shandong New Hope Sewage 2013, and further
Anaerobic + aerobic 1500 cubic Running
Liuhe Group Co., Ltd. treatment improved in 2019
(A/O process) meters/day normally
Linyi Branch system 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
Phase I
Sewage Biological contact
Liaoning Kinghey Food 3000 cubic commissioned in Running
treatment oxidation process, A/O
Co., Ltd. meters/day 2006, followed by normally
system process
Phase II in 2019
Sewage
Chengdu Hope Food Co., Anaerobic + aerobic 1400 cubic Commissioned in Running
treatment
Ltd. (A/O process) meters/day 2010 normally
system
Zhejiang Xindongwan Sewage
Aerobic aeration 1500 cubic Not in operation
Agricultural treatment Not running
process meters/day (shut down)
Development Co., Ltd. system
Pooled into Zhejiang
Xindongwan
Sewage
Hangzhou Guanglv Agricultural
treatment
Breeding Co., Ltd. Development Co., Ltd
system
for sharing of one
system
Sewage
Rui'an New Hope Liuhe 430 cubic Commissioned in Running
treatment UASB + two-level AO
Farming Co., Ltd. meters/day 2021 normally
system
Sewage
Ningbo New Hope Liuhe 731 cubic Commissioned in Running
treatment UASB + two-level AO
Farming Co., Ltd. meters/day 2021 normally
system
Environmental impact assessment of construction projects and other administrative licenses for environmental protection
Company name Document name Approving authority Date approved Approval number
Shandong Dezhou
Approval of EIS of Linyi Liuhe
Environmental Dec. 24, 2010 D.H.Y. (2010) No. 65
Food Co., Ltd.
Linyi Liuhe Food Protection Bureau
Co., Ltd. Acceptance Test Report on Shandogn Linyi County
Environmental Protection of Environmental June 2017 L.H.J.Zi 2017 YS06-07
Completed Construction Project Protection Bureau
Approval of EIS of the 20 million
Qiu County
White Feather Duck Farming and
Environmental Feb. 2, 2012 Q.H.S. [2012] No. 1
Processing Project of Hebei
Qiu County Liuhe Protection Bureau
KangYuan HALAL Food Co., Ltd.
KangYuan Food Co.,
Supplementation to the 20 million
Ltd. Qiu County
White Feather Duck Farming and
Environmental Dec. 23, 2013 Q.H.S. [2013] No. 4
Processing Project of Hebei
Protection Bureau
KangYuan HALAL Food Co., Ltd.
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The 20 million White Feather
Qiu County
Duck Farming and Processing
Environmental 2013 Q.H.Y. [2013] No. 7
Project of Hebei KangYuan
Protection Bureau
HALAL Food Co., Ltd.
Qiu County Bureau of
Duck feather drying and processing
Administrative 2019 Q.S.H.B. [2019] No. 11
project
Approval
Construction Project
Environmental Impact Registration
Filed by the Company Oct. 15, 2018 (time
Form for UV Light Oxygen 20181304000000054
online filed)
Deodorization Environmental
Protection Project
Approval of EIS of the 15 million/a
Duck Slaughtering and Food Linyi Environmental
April 10, 2013 L.H.F. [2013] No. 53
Processing Project of Cangshan Protection Bureau
County Hongjun Food Co., Ltd.
Lanling New Hope Opinions on the Completion
Liuhe Hongjun Food Acceptance of Environmental
Co., Ltd. Protection for the 15 million/a
Linyi Environmental L.H.P.H. (2014) No.
Duck Slaughtering and Food Aug. 20, 2018
Protection Bureau 341
Processing Project of Lanling New
Hope Liuhe Hongjun Food Co.,
Ltd.
Written Reply regarding the
Approval Opinions on Broiler Linyi Environmental
Dec. 7, 2001 L.H.H. [2001] No. 103
Slaughtering Line Project Phase II Protection Bureau
Pingyi Refrigeration
of Pingyi Liuhe Co., Ltd.
Factory of Shandong
Opinions on the Completion
New Hope Liuhe
Acceptance of Environmental
Group Co., Ltd. Linyi Environmental
Protection of Broiler Slaughtering June 2, 2003 P.H.S.Zi (2008) No. 41
Protection Bureau
Line Project Phase II of Pingyi
Liuhe Co., Ltd.
Environmental Impact Report on Qingdao Jiehua
Poultry Slaughterhouse Expansion Environmental Feb. 2020 1581306565000
Project Technology Co., Ltd.
Environmental Impact Report on
Pingdu Environmental
the 6 million/a Duck Processing Jan. 18, 2015 P.H.J.Zi [2005] No. 20
Qingdao Tianrun Protection Bureau
Plant Project
Food Co., Ltd.
Acceptance Opinions on
Completion Acceptance of
Pingdu Environmental
Environmental Protection of the Dec. 19, 2006 P.H.J.Zi (2003) No. 53
Protection Bureau
Meat Duck Processing Plant
Project
Approval of EIS of the Proposed
60,000 t/a Chicken Cutting Lvliang Environmental L.H.H.S. [2010] No.
Dec. 9, 2010
Production Line Project of Xiaoyi Protection Bureau 335
Daxiang Farming & Food Co., Ltd.
Xiaoyi New Hope Opinions on Completion
Liuhe Food Co., Ltd. Acceptance of Environmental
Protection of the Proposed 60,000 Lvliang Environmental
Sept. 30, 2017 X.H.H. [2017] No. 167
t/a Chicken Cutting Production Protection Bureau
Line Project of Xiaoyi Daxiang
Farming & Food Co., Ltd.
Approval of EIS of the Proposed
90,000 t/a Poultry Meat and Deep Linyi Environmental
May 4, 2009 L.H.H. [2009] No. 245
Processing Plant Project of Yishui Protection Bureau
Liuhe Kailida Food Co., Ltd.
Approval of Application for
Yishui New Hope Commissioning of the New 90,000
Linyi Environmental
Liuhe Food Co., Ltd. t/a Poultry Meat and Deep Aug. 21, 2010 L.H.H. [2010] No. 596
Protection Bureau
Processing Plant Project of Yishui
Liuhe Kailida Food Co., Ltd.
Approval of EIS of the Sewage
Linyi Environmental
Treatment Improvement Project of June 24, 2011 L.H.H. [2011] No. 330
Protection Bureau
Yishui Liuhe Kailida Food Co.,
99
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Ltd.
Approval of Application for
Commissioning of the Sewage
Linyi Environmental
Treatment Improvement Project of Oct. 12, 2012 L.H.H. [2012] No. 554
Protection Bureau
Yishui Liuhe Kailida Food Co.,
Ltd.
Approval of EIS of the Broiler
Handan Environmental
Slaughtering and Cutting Project of Mar. 4, 2009 [2009] No. 36
Protection Bureau
Guantao Liuhe Food Co., Ltd.
Opinions on Completion
Acceptance of Environmental
Guantao Liuhe Food Handan Environmental
Protection of the Broiler Dec. 2, 2010 G.H.Y. [2010] No. 89
Co., Ltd. Protection Bureau
Slaughtering and Cutting Project of
Guantao Liuhe Food Co., Ltd.
Meat Products Deep Processing
Handan Environmental
and Sewage Treatment Project of May 22, 2017 H.G.B. [2017] No. 9
Protection Bureau
Guantao Liuhe Food Co., Ltd.
0.90 million/a Broiler and Duck Binzhou Environmental
Slaughtering and Cutting Project of Protection Bureau Mar. 16, 2007 B.C.H.B. [2007] No. 11
Binzhou Liuhe Binzhou Longda Food Co., Ltd. Bincheng Branch
Longda Farming Co.,
Binzhou Environmental
Ltd.
Acceptance Opinions Protection Bureau Sept. 20, 2008 H.Y. [2008] No. 1-15
Bincheng Branch
The 40,000/a Broiler Slaughtering
Wudi Liuhe Xinyang Binzhou Environmental
Plant Project of Binzhou Qinghe Feb. 26, 2007 B.H.Zi [2007] No. 30
Food Co., Ltd. Protection Bureau
Fushi Food Co., Ltd.
Approval of EIS of the 0.90
Zouping County
million/a Broiler Slaughtering Line
Environmental Sept. 8, 2009 Z.H.G.Zi (2009) No. 72
Project of Zouping Liuhe Farming
Protection Bureau
Zouping Liuhe Co., Ltd.
Livestock Co., Ltd. Opinions on Completion
Zouping County
Acceptance of Environmental
Environmental Dec. 7, 2010 Z.H.Y.B. (2010) No. 13
Protection of the 0.90 million/a
Protection Bureau
Broiler Slaughtering Line Project
The 30 million/a Duck
Slaughtering and Processing Plant Heze Environmental
June 11, 2012 H.H.S. [2012] No. 46
Project of Shan County Liuhe Feed Protection Bureau
Co., Ltd. Food Branch
Shan County Liuhe
Completion Acceptance of
Feed Co., Ltd. Food
Environmental Protection of the 30
Branch
million/a Duck Slaughtering and Heze Environmental
Sept. 30, 2017 H.Y. [2017] No. 108
Processing Plant Project of Shan Protection Bureau
County Liuhe Feed Co., Ltd. Food
Branch
New 20 million/a Duck
Cao County
Slaughtering and Processing Plant
Environmental April 11, 2007 C.H.S. [2007] No. 44
Project of Cao County Liuhe Food
Protection Bureau
Co., Ltd.
Cao County Liuhe Completion Acceptance of
Food Co., Ltd. Environmental Protection of the
Cao County
New 20 million/a Duck
Environmental June 10, 2008 C.H.S. [2008] No. 26
Slaughtering and Processing Plant
Protection Bureau
Project of Cao County Liuhe Food
Co., Ltd.
Meat Poultry Slaughtering and
Jiaxiang County
Jiaxiang New Hope Deep Processing Project of
Environmental Aug. 17, 2016 J.H.S. [2016] No. 2
Liuhe Food Co., Ltd. Jiaxiang New Hope Liuhe Food
Protection Bureau
Co., Ltd.
Approval of EIS of Wastewater Yuncheng County
Treatment Improvement Project of Environmental Jul. 25, 2010 Y.H.S. [2010] No. 62
Yuncheng Liuhe Yuncheng Liuhe Food Co., Ltd. Protection Bureau
Food Co., Ltd. Completion Acceptance Form for Yuncheng County
the Wastewater Treatment Environmental Oct. 13, 2014 Y.H.P.H. (2018) No. 6
Improvement Project Protection Bureau
Anshan Liuhe Food The 15 million/a Duck Tai'an County May 11, 2007 T.H.S.Zi [2007] No. 8
100
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Co., Ltd. Slaughtering and Processing Environmental
Project of Liaoning Honglu Protection Bureau
Agricultural Development Co.,
Ltd.
Opinions on Completion
Acceptance of Environmental
Protection of the 15 million/a Duck Tai'an County
Slaughtering and Processing Environmental June 29, 2008 T.H.Y.Zi [2008] No. 6
Project of Liaoning Honglu Protection Bureau
Agricultural Development Co.,
Ltd.
Approval of EIS of the Meat Duck
Cutting, Processing and Panjin Environmental
Dec. 30, 2010 P.H.F. [2010] No. 350
Refrigeration Plant Project of Protection Bureau
Panjin Liuhe Farming Co., Ltd.
Panjin Liuhe Opinions on Completion
Farming Co., Ltd. Acceptance of Environmental
Protection of the Meat Duck Panjin Environmental
Nov. 29, 2012 P.F.H. [2012] No. 117
Cutting, Processing and Protection Bureau
Refrigeration Plant Project of
Panjin Liuhe Farming Co., Ltd.
The 0.90 million/a Poultry
Slaughtering and Refrigeration Dong’e Environmental
Jul. 15, 2008 D.S.B. [2008] No. 55
Project of Dong'e Liuhe Lvjia Food Protection Bureau
Co., Ltd.
Dong’e Liuhe Lvjia
Opinions on Completion
Food Co., Ltd.
Acceptance of the 0.90 million/a Environmental
Dong’e Environmental
Poultry Slaughtering and Dec. 29, 2010 Protection Report on
Protection Bureau
Refrigeration Project of Dong'e Construction Project
Liuhe Lvjia Food Co., Ltd.
Approval of EIS of the Duck
Gaotang County
Slaughtering Line Project of
Environmental Feb. 24, 2012 G.H.Y. [2012] No. 02
Liaocheng Liuhe Liaocheng Liuhe Rongda Farming
Protection Bureau
Rongda Farming Co., Co., Ltd.
Ltd. Gaotang County
Opinions on Completion
Environmental Jul. 21, 2017 G.H.Y. [2017] No. 10
Acceptance of Construction Project
Protection Bureau
Approval of EIS of the 48 million/a
Shen County
Duck Slaughtering Project of Shen
Environmental May 28, 2013 S.H.S. [2013] No. 43
County New Hope Liuhe
Protection Bureau
Shen County New Qingsizhai Food Co., Ltd.
Hope Liuhe Opinions on Completion
Qingsizhai Food Co., Acceptance of Environmental
Shen County
Ltd. Protection of the 48 million/a Duck
Environmental Jul. 28, 2014 S.H.Y. [2014] No. 12
Slaughtering Project of Shen
Protection Bureau
County New Hope Liuhe
Qingsizhai Food Co., Ltd.
Opinions on Filing of the 32
Yanggu County
Yanggu Liuhe Luxin million/a Duck Slaughtering
Environmental Dec. 28, 2016 Y.H.H. [2016] No. 123
Food Co., Ltd. Project of Yanggu Liuhe Luxin
Protection Bureau
Food Co., Ltd.
Approval of EIS of the Duck
Product Deep Processing Shouguang
Industrialization Demonstration Environmental Mar. 30, 2007 S.H.S.Zi (2007) No. 2
Project of Weifang Tianhui Food Protection Bureau
Weifang Tianhui Co., Ltd.
Food Co., Ltd. Acceptance Opinions on the Duck
Product Deep Processing Packing Shouguang
Industrialization Demonstration Environmental Oct. 2007 None
Project of Weifang Tianhui Food Protection Bureau
Co., Ltd.
Anqiu Modern White Feather
Weifang Anqiu Environmental
Broiler Industry Integrated Sept. 9, 2016 A.H.Zi [2016] No. 58
HeshengYuan Food Protection Bureau
Development Project, Weifang
Co., Ltd.
Pollution Control Facilities Anqiu Environmental Jan. 2019 A.H.Y.Zi [2019]
101
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Acceptance Form (Trial) Protection Bureau No.034
Review Opinions on New Broiler Luoyang
Processing Project of Luoyang Environmental Jul. 30, 2008 L.S.H. (2008) No. 226
Liuhe Huiquan Food Co., Ltd. Protection Bureau
Approval of EIS of the New
Broiler Processing Project of Henan Environmental
Luoyang Liuhe Nov. 14, 2008 Y.H.S. (2008) No. 262
Luoyang Liuhe Huiquan Food Co., Protection Bureau
Huiquan Food Co.,
Ltd.
Ltd.
Acceptance Opinions on
Environmental Protection of the
Henan Environmental
New Broiler Processing Project of Oct. 15, 2010 L.H.J.Y. [2010] No. 52
Protection Bureau
Luoyang Liuhe Huiquan Food Co.,
Ltd.
Status Quo Environmental Impact Status Quo
Hebi Liuhe Zhizhen
Assessment Report retroactively No reply Environmental Impact
Food Co., Ltd.
filed in 2016 Assessment Report
EIS of the Meat Poultry Processing Laicheng District
Industrialization Project of Laiwu Environmental Aug. 19, 2011 L.H.J. [2011] No. 82
Laiwu New Hope New Hope Liuhe Food Co., Ltd. Protection Bureau
Liuhe Food Co., Ltd. EIS on Air Pollution Control of
Laiwu Environmental L.H.B.G.B. {2018} No.
Laiwu New Hope Liuhe Food Co., Nov. 14, 2018
Protection Bureau 11142
Ltd.
Acceptance Monitoring Report on
Environmental Protection of the
Ling County
Completed 30,000/d Meat Duck
Environmental Testing Dec. 1, 2009 L.H.J.Zi (2009) No. 39
Slaughtering Plant Project of
Station, Dezhou
Dezhou Liuhe Zhikang Food Co.,
Dezhou Liuhe
Ltd.
Zhikang Food Co.,
Ltd. Acceptance Opinions on
Environmental Protection of the
Ling County
Completed 30,000/d Meat Duck
Environmental Testing May 10, 2010 L.H.Y. (2010) No. 3
Slaughtering Plant Project of
Station
Dezhou Liuhe Zhikang Food Co.,
Ltd.
Approval of EIS of the 20 million/a
Fei County Liuhe
Broiler Slaughtering and Linyi Environmental
Huahai Food Co., April 27, 2012 L.H.F. (2012) No. 51
Processing Project of Fei County Protection Bureau
Ltd.
Liuhe Huahai Food Co., Ltd.
Approval of EIS of the 25 million/a
Fuxin Environmental
Broiler Slaughtering Project of
Protection Bureau Jan. 10, 2017 F.H.T.S.S [2017] No.1
Fuxin Liuhe Farming Co., Ltd.
Taiping Branch
Food Branch
Fuxin Liuhe Farming Approval of Completion
Co., Ltd. Food Acceptance of Environmental
Branch Facilities for the 15 million/a
Fuxin Environmental
White Feather Broiler Slaughtering Mar. 10, 2010 F.H.F. [2010] No. 49
Protection Bureau
and Processing Project of Fuxin
Liuhe Farming Co., Ltd. Food
Branch
EIS for approval of the 120,000/d
Taiqian New Hope
Duck Slaughtering Project of Puyang Ecology and T.H.G.J.B. {2019} No.
Liuhe Luxin Food Jul. 27, 2020
Taiqian New Hope Liuhe Luxin Environment Bureau 26
Co., Ltd.
Food Co., Ltd.
Broiler Processing Line Project of
Laoting New Hope Liuhe Zhaotai Laoting County
Food Co., Ltd. constructed by Environmental Sept. 21, 2012 L.H.S. [2012] No. 08
Laoting Liuhe
Laoting Shengxiang Trade Co., Protection Bureau
Xinmeizi Food Co.,
Ltd.
Ltd.
Tangshan Ecology and
Broiler Processing Line Upgrading
Environment Bureau Sept. 25, 2020 L.H.P.B. [2020] No. 49
and Transformation Project
Laoting County Branch
Qixia Refrigeration Approval of EIS of the Plant
Factory of Shandong Renovation and Sewage Treatment Qixia Environmental
Dec. 18, 2012 None
New Hope Liuhe Reconstruction and Expansion Protection Bureau
Group Co., Ltd. project of Qixia Refrigeration
102
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Factory of Shandong New Hope
Liuhe Group Co., Ltd.
Acceptance Monitoring Report on
Shandong Yantai
Environmental Protection of the 20
Ecology and
million /a Broiler Slaughtering and May 1, 2020 L.H.F. [2020] No. 12
Environment Bureau
Processing Project of Laiyang
Laiyang Tianye Food Laiyang Branch
Tianye Food Co., Ltd.
Co., Ltd.
Shandong Yantai
Ecology and
Acceptance Opinions May 1, 2020 L.H.F. [2020] No. 12
Environment Bureau
Laiyang Branch
Tai'an Taishan Liuhe
None None
Food Co., Ltd.
Approval of EIS of the 30,000t/a
Poultry Slaughtering, Cutting and
Linyi Environmental
Processing Line Relocation and Jul. 7, 2007 L.H.F. [2007] No. 73
Protection Bureau
Expansion Project of Shandong
Shandong New Hope Dazhong Food Co., Ltd.
Liuhe Group Co., Environmental Acceptance
Ltd. Linyi Branch Opinions of the 30,000t/a Poultry
Slaughtering, Cutting and Linyi Environmental
Dec. 8, 2008 L.H.Y. [2008] No. 82
Processing Line Relocation and Protection Bureau
Expansion Project of Shandong
Dazhong Food Co., Ltd.
EIS and Water Environmental
Impact Report of the 20,000t/a
Ocean University of
Meat Product and Frozen Fresh May 12, 2011 HDHP112137
China
Vegetable Project of Qingdao
Liuhe Wanfu Food Co., Ltd.
Approval of the EIS and Water
Environmental Impact Report of
the 20,000t/a Meat Product and Laixi Environmental
June 3, 2011 X.H.S. [2011] No. 43
Frozen Fresh Vegetable Project of Protection Bureau
Qingdao Liuhe Qingdao Liuhe Wanfu Food Co.,
Wanfu Food Co., Ltd.
Ltd. Acceptance Test Report on
Environmental Protection of the
Laixi Environmental
20,000t/a Meat Product and Frozen Jan. 2014 X.Y.J.Z. [2013] No. 027
Monitoring Station
Fresh Vegetable Project of Qingdao
Liuhe Wanfu Food Co., Ltd.
Letter of Environmental
Acceptance Opinions on the
Laixi Environmental
20,000t/a Meat Product and Frozen Feb. 27, 2015 X.H.Y. [2015] No. 9
Protection Bureau
Fresh Vegetable Project of Qingdao
Liuhe Wanfu Food Co., Ltd.
Approval of EIS of the Broiler
Fenxi New Hope Farming and Slaughtering and Linfen Environmental
Nov. 17, 2010 L.H.S.F [2010] No. 16
Liuhe Food Co., Ltd. Feed Processing Project of Fenxi Protection Bureau
Hongchang Breeding Co., Ltd.
Approval of Beijing Pinggu
District Environmental Protection
Beijing Pinggu District
Bureau regarding EIS of Quick J.P.H.P.S. [2014] No.
Environmental 2014
Frozen Food and Meat Product 450
Beijing Kinghey Protection Bureau
Processing and Supporting
Food Co., Ltd. Facilities Project
Beijing Pinggu District
Acceptance Opinions Environmental 2015 P.H.Y. [2015] No. 71
Protection Bureau
Approval of EIS of Nangong Hog
Slaughtering and Meat Product Hebei Environmental
2004 J.H.G. [2004] No. 193
Deep Processing Project of Beijing Protection Bureau
Hebei Kinghey Meat Kinghey Food Co., Ltd.
Industry Co., Ltd.
Hebei Provincial
Acceptance Opinions Department of 2010 J.H.Y. [2010 No. 193
Environmental
103
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Protection
Shenyang
Hog Slaughtering Project of Environmental S.N.H.B.S.Zi [2005]
2005
Liaoning Kinghey Food Co., Ltd. Protection Bureau Puhe No. 7
Liaoning Kinghey New Town Branch
Food Co., Ltd. Shenyang
Environmental
Acceptance Opinions 2010 P.H.F.Y. [2010] No. 071
Protection Bureau Puhe
New Town Branch
Application for Registration of
Xinjin County
Environmental Protection
Environmental Sept. 8, 2009 X.H.Y. [2009] No. 17
Acceptance of Completed
Protection Bureau
Construction Project
Application for Registration of
Xinjin County
Environmental Protection
Environmental Sept. 8, 2009 X.H.Y. [2009] No. 18
Acceptance of Completed
Protection Bureau
Construction Project
Low-Temperature Meat Product Xinjin County
Processing (Phase I and II) Environmental Oct. 14, 2008 X.H.J. (2008) No. 79
Construction Project Protection Bureau
High-Temperature Meat Product Xinjin County
Processing (Phase III) Construction Environmental Nov. 12, 2008 X.H.J. (2008) No. 80
Chengdu Hope Food
Project Protection Bureau
Co., Ltd.
Review and Approval of
Environmental Impact Registration
Xinjin County Bureau
Form of the 3,000t/a Quick Frozen
of Administrative Jan. 5, 2016 X.S.Y.H.P. [2016] No. 1
and Prepared Food Production line
Approval
Project of Chengdu Hope Food
Co., Ltd.
Review and Approval of Xinjin
County Environmental Protection
Bureau regarding EIS of the New Xinjin County
35,000 t/a High-temperature Meat Environmental Jul. 3, 2014 X.H.J.F. [2014] No. 67
Product Production Line Protection Bureau
Renovation Project of Chengdu
Hope Food Co., Ltd.
EIS of Zhejiang Xindongwan Zhejiang Institute of
Zhejiang Agricultural Development Co., Water Resources and Aug. 1, 2010 G.H.P.Z.B Zi No. 2032
Xindongwan Ltd. (draft for approval) Estuaries
Agricultural Hog Farm Remediation Project of
Hangzhou Xiaoshan
Development Co., Zhejiang Xindongwan Agricultural
District Agriculture June 2016
Ltd. Development Co., Ltd. (draft for
Bureau
filing)
Hog Farm Remediation Project of Hangzhou Xiaoshan
Hangzhou Guanglv
Hangzhou Guanglv Breeding Co., District Agriculture June 2016
Breeding Co., Ltd.
Ltd. (draft for filing) Bureau
Rui'an New Hope Comments on the Approval of EIS
Wenzhou Ecology and
Liuhe Farming Co., of Rui'an New Hope Modern Jul. 2020 W.H.R.J. (2020) No. 56
Environment Bureau
Ltd. Agricultural Industrial Park
Zhejiang Yihai Review Opinions on the EIS of
Quzhou Ecology and
Agricultural Fine Pig Ecological Breeding Base
Environment Bureau Mar. 2020 Q.J.H.J. (2020) No. 7
Development Co. Project of Zhejiang Yihai
Quxiang Branch
Ltd. Agricultural Development Co. Ltd.
Approval of the EIS of Zhejiang
Ningbo New Hope Ningbo Fenghua Hog Ecological Ningbo Ecology and
F.H.J.G.Z.C.N. (2020)
Liuhe Farming Co., Circulation Breeding Base Project Environment Bureau Jul. 2020
No. 1
Ltd. of Ningbo New Hope Liuhe Fenghua Branch
Farming Co., Ltd.
Contingency Plan for Environmental Emergencies
Filed or
Company name Filing authorities Filing number Time
not
Linyi Liuhe Food Co., Ltd. Filed Linyi County 3711424-2019-037-L Nov. 2019
104
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Environmental
Protection Bureau
Qiu County
Qiu County Liuhe KangYuan
Filed Environmental 031020180913 Sept. 2018
Food Co., Ltd.
Protection Bureau
Lanling County
Lanling New Hope Liuhe
Filed Environmental 371327-2019-03-L Mar. 4, 2019
Hongjun Food Co., Ltd.
Protection Bureau
Pingyi Refrigeration Factory of Pingyi County
Shandong New Hope Liuhe Filed Environmental 371326-2018-012-L May 5, 2018
Group Co., Ltd. Protection Bureau
Pingdu
Qingdao Tianrun Food Co.,
Filed Environmental 370283-20170515-079-M May 15, 2017
Ltd.
Protection Bureau
Lvliang Ecology
Xiaoyi New Hope Liuhe Food and Environment
Filed 141181-2019-0013-M May 6, 2019
Co., Ltd. Bureau Xiaoyi
Branch
Yishui
Yishui New Hope Liuhe Food
Filed Environmental 371323-2019-012-M Oct. 24, 2019
Co., Ltd.
Protection Bureau
Handan
Emergency
Guantao Liuhe Food Co., Ltd. Filed Headquarters for 130433-Q7-2017-164 April 24, 2017
Heavy Pollution
Weather
Binzhou
Binzhou Liuhe Longda Farming
Filed Environmental 371602-2019-0001-L Jan. 4, 2019
Co., Ltd.
Protection Bureau
Binzhou Ecology
Wudi Liuhe Xinyang Food Co., and Environment
Filed
Ltd. Bureau Wudi
Branch
Zouping County
Zouping Liuhe Livestock Co.,
Filed Environmental 371626-2016-084-L May 23, 2016
Ltd.
Protection Bureau
Heze Ecology and
Shan County Liuhe Feed Co., Environment
Filed 371722-2020-017-M Jul. 22, 2020
Ltd. Food Branch Bureau Shan
County Branch
Cao County Liuhe Food Co., In
Ltd. progress
Jiaxiang County
Jiaxiang New Hope Liuhe Food
Filed Environmental 370829-001-M Jan. 7, 2019
Co., Ltd.
Protection Bureau
Yuncheng County
Yuncheng Liuhe Food Co., Ltd. Filed Environmental 371725-2019-022-L Dec. 25, 2019
Protection Bureau
Anshan Ecology
and Environment
Anshan Liuhe Food Co., Ltd. Filed 210321-2020-036-L Sept. 29, 2020
Bureau Tai'an
Branch
Panjin Dawa
District
Panjin Liuhe Farming Co., Ltd. Filed 211121-2020-6-L April 20, 2020
Environmental
Protection Bureau
Dong’e
Dong’e Liuhe Lvjia Food Co.,
Filed Environmental 91371524554382151H001Y Dec. 4, 2018
Ltd.
Protection Bureau
105
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Gaotang County
Liaocheng Liuhe Rongda
Filed Environmental 913715267986527441001Q Dec. 13, 2018
Farming Co., Ltd.
Protection Bureau
Shen County
Shen County New Hope Liuhe
Filed Environmental 91371522081794657Y001X Dec. 14, 2018
Qingsizhai Food Co., Ltd.
Protection Bureau
Yanggu County
Yanggu Liuhe Luxin Food Co.,
Filed Environmental 91371521684826830M001Q Dec. 3, 2018
Ltd.
Protection Bureau
Shouguang
Weifang Tianhui Food Co., Ltd. Filed Environmental 370783-2018-058M Jan. 30, 2018
Protection Bureau
Anqiu
Weifang HeshengYuan Food
Filed Environmental 370784-2018-045-L Oct. 24, 2018
Co., Ltd.
Protection Bureau
Luoyang
Luoyang Liuhe Huiquan Food
Filed Environmental 410381201402 Jan. 10, 2014
Co., Ltd.
Protection Bureau
Environmental
Emergency
Response
Hebi Liuhe Zhizhen Food Co.,
Filed Headquarters of 4016212017008H Jul. 28, 2017
Ltd.
Hebi
Environmental
Protection Bureau
Laiwu Bureau for
Construction and
Development of
371202(AHIDZ)-2018-011-
Laiwu New Hope Liuhe Food Agricultural
Filed larger[larger-air Dec. 24, 2018
Co., Ltd. High-tech
(Q1)+ordinary-water (Q1)]
Industry
Demonstration
Zone
Dezhou Ecology
Dezhou Liuhe Zhikang Food and Environment
Filed 3714212019023L Nov. 20, 2019
Co., Ltd. Bureau Lingcheng
Branch
Fei County
Fei County Liuhe Huahai Food
Filed Environmental 371325-2017-030-L Aug. 23, 2017
Co., Ltd.
Protection Bureau
Fuxin
Fuxin Liuhe Farming Co., Ltd.
Filed Environmental Jul. 1, 2018
Food Branch
Protection Bureau
Taiqian County
Taiqian New Hope Liuhe Luxin
Filed Environmental 4109272020048L Dec. 23, 2020
Food Co., Ltd.
Protection Bureau
Tangshan
Environmental
Laoting Liuhe Xinmeizi Food
Filed Protection Bureau 130225-2019-011-L Jul. 8, 2019
Co., Ltd.
Laoting County
Branch
Qixia Refrigeration Factory of Qixia
Shandong New Hope Liuhe Filed Environmental 370686-2018-067-M Aug. 2018
Group Co., Ltd. Protection Bureau
Tai'an Taishan Liuhe Food Co.,
Not filed Nov. 2019
Ltd.
Hedong District
Shandong New Hope Liuhe
Filed Environmental HJYA-2019 Nov. 4, 2019
Group Co., Ltd. Linyi Branch
Protection Bureau
106
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Qingdao Ecology
Qingdao Liuhe Wanfu Food and Environment
Filed 3702852031124L May 12, 2021
Co., Ltd. Bureau Laixi
Branch
Fenxi New Hope Liuhe Food
Not filed
Co., Ltd.
Laiyang
Laiyang Tianye Food Co., Ltd. Filed Environmental 370682-2018-23-L Mar. 2018
Protection Bureau
Pinggu District
Beijing Kinghey Food Co., Ltd. Filed Environmental 110117-2018-036-M Dec. 2018
Protection Bureau
Nangong
Hebei Kinghey Meat Industry
Filed Environmental 2019-12-M Dec. 2019
Co., Ltd.
Protection Bureau
Shenyang
Environmental
Liaoning Kinghey Food Co.,
Filed Protection Bureau 210113-2020-196-M Sept. 2020
Ltd.
Puhe New Town
Branch
Chengdu Xinjin
District Ecology
Chengdu Hope Food Co., Ltd. Filed 5101322020047L June 2020
and Environment
Bureau
Qiantang New
Zhejiang Xindongwan
District Ecology
Agricultural Development Co., Filed 330199-2021-009-M Mar. 31, 2021
and Environment
Ltd.
Bureau
Qiantang New
Hangzhou Guanglv Breeding District Ecology
Filed 330199-2021-008-M Mar. 31, 2021
Co., Ltd. and Environment
Bureau
Wenzhou Ecology
Rui'an New Hope Liuhe and Environment
Filed 330381-202L-023-L May 23, 2022
Farming Co., Ltd. Bureau Rui'an
Branch
Ningbo New Hope Liuhe Filing
Farming Co., Ltd. suspended
In-house Environmental Monitoring Program
Company Monitoring Monitored Monitorin Monitoring Emission Analytic Source of
Standards adopted
name site item g method frequency limit methods method
Dichromate
COD 450mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
Water Pollutant 50mg/L HJ 668-2013
nitrogen hydrochloride
Discharge Standards spectrophotometr
Sewage
for Meat Processing y
Linyi Liuhe treatment
Online Once per 6 Industry (GB 13457-
Food Co., station Nessler’s reagent
Ammonia monitoring hours 92)
Ltd. discharge 35mg/L spectrophotometr HJ535-2009
nitrogen Agreements with
outlet y
sewage treatment
plants Ammonium
Total
molybdate
phosphorus- 6mg/L HJ 671-2013
spectrophotometr
-
y
Glass electrode
pH 6-8.5 GB 6920-1986
method
107
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Suspended Gravimetric
200mg/L GB11901-89
solids method
Dilution and
BOD5 120mg/L inoculation HJ505-2009
method
Animal and Manual Once per Infrared
vegetable monitoring quarter 50mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform fermentation and
10000 HJ637-2012
groups filtration
membrane
Non-dispersive
Nitrogen Once per infrared
150mg/Nm3 HJ 692-2014
oxides month Emission Standards absorption
for Air Pollutants method
from Boilers (GB Non-dispersive
Boiler
Sulfide Manual 13271-2014), infrared
discharge 50mg/Nm3 HJ 629-2011
dioxide monitoring Emission Standards absorption
outlet method
1 times a for Air Pollutants
year from Boilers (DB37 Gravimetric HJ/T 398-
Dust 10mg/Nm3
2374-2018) method 2007
Ringelman Ringelman HJ/T 398-
1
blackness blackness chart 2007
Odor
Triangle odor bag GB/T14675-
concentratio 20
method 1993
n Odor Pollutant
Boundary Ammonia Manual Once per Discharge Standards
Ion selective GB/T 14669-
odor (ammonia monitoring half a year (GB 14554-93), 1.5mg/Nm3
electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 50mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
20mg/L HJ 668-2013
nitrogen hydrochloride
Notice on Approval
spectrophotometr
and Release of the
y
Online Once per 6 Modification List to
4 Standards Nessler’s reagent
Ammonia monitoring hours
including the 5mg/L spectrophotometr HJ535-2009
nitrogen
Comprehensive y
Discharge Standards Ammonium
Sewage Total for Water Pollutants molybdate
0.3mg/L HJ 671-2013
treatment phosphorus Along the South-to- spectrophotometr
Lanling New y
station North Water
Hope Liuhe discharge Diversion Project in Glass electrode
Hongjun pH 6-8.5 GB 6920-1986
outlet Shandong Province method
Food Co.,
Suspended (L.Z.J.B.F. [2011] Gravimetric
Ltd. 20mg/L GB11901-89
solids No. 35) method
Water Pollutant Dilution and
BOD5 Discharge Standards 10mg/L inoculation HJ505-2009
for Meat Processing method
Animal and Manual Once per Industry (GB 13457- Infrared
92)
vegetable monitoring month 3mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform fermentation and
10000 HJ637-2012
groups filtration
membrane
Boiler Non-dispersive
Nitrogen Manual Once per
discharge Emission Standards 200mg/Nm3 infrared HJ 692-2014
oxides monitoring month
outlet for Air Pollutants absorption
108
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
from Boilers (DB37 method
2374-2018) Non-dispersive
Sulfide infrared
50mg/Nm3 HJ 629-2011
dioxide absorption
1 times a method
year Gravimetric HJ/T 398-
Dust 10mg/Nm3
method 2007
Ringelman Ringelman HJ/T 398-
1
blackness blackness chart 2007
Odor
Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Odor Pollutant
Boundary Ammonia Manual Once per
Discharge Standards Ion selective GB/T 14669-
odor (ammonia monitoring half a year 1.5mg/Nm3
(GB 14554-93) electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 500mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
70mg/L HJ 668-2013
nitrogen hydrochloride
spectrophotometr
y
Online Once per 6
Nessler’s reagent
Ammonia monitoring hours
45mg/L spectrophotometr HJ535-2009
nitrogen Water Quality y
Standards for Ammonium
Total Sewage Discharged molybdate
Sewage 8mg/L HJ 671-2013
into Urban Sewers
treatment phosphorus spectrophotometr
(GB/T 31962-2015), y
station
Water Pollutant
discharge Glass electrode
pH Discharge Standards 6-8.5 GB 6920-1986
outlet method
for Meat Processing
Suspended Industry (GB 13457- 200mg/L Gravimetric
GB11901-89
solids 92) method
Dilution and
Pingyi BOD5 250mg/L inoculation HJ505-2009
Refrigeratio method
n Factory of Animal and Manual Once per Infrared
Shandong vegetable monitoring quarter 50mg/L spectrophotometr HJ 637-2012
New Hope oil y
Liuhe Group Multi-tube
Co., Ltd. Coliform fermentation and
10000 HJ637-2012
groups filtration
membrane
Non-dispersive
Nitrogen Once per infrared
200mg/Nm3 HJ 692-2014
oxides month absorption
method
Emission Standards Non-dispersive
Boiler Sulfide infrared
Manual for Air Pollutants
discharge 50mg/Nm3 HJ 629-2011
dioxide monitoring from Boilers (DB37 absorption
outlet
1 times a 2374-2018) method
year Gravimetric HJ/T 398-
Dust 10mg/Nm3
method 2007
Ringelman Ringelman HJ/T 398-
1
blackness blackness chart 2007
Odor
Triangle odor bag GB/T14675-
concentratio 20
Odor Pollutant method 1993
Boundary n Manual Once per
Discharge Standards
odor Ammonia monitoring half a year
(GB 14554-93), Ion selective GB/T 14669-
(ammonia 1.5mg/Nm3
electrode method 1993
gas)
109
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 40mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
20mg/L HJ 668-2013
nitrogen hydrochloride
spectrophotometr
y
Online Once per 2
Nessler’s reagent
Ammonia monitoring hours
2mg/L spectrophotometr HJ535-2009
nitrogen
y
Peninsula Watershed Ammonium
Sewage (DB37/3416.5- molybdate
Phosphate 1000mg/L HJ 671-2013
treatment 2018), Water spectrophotometr
station Pollutant Discharge y
discharge Standards for Meat Glass electrode
pH 6-8.5 GB 6920-1986
outlet Processing Industry method
Suspended (GB13457-92) Gravimetric
30mg/L GB11901-89
solids method
Dilution and
BOD5 10mg/L inoculation HJ505-2009
method
Animal and Manual Once per Infrared
vegetable monitoring month 5mg/L spectrophotometr HJ 637-2012
Qingdao oil y
Tianrun
Food Co., Multi-tube
Coliform fermentation and
Ltd. 10000 HJ637-2012
groups filtration
membrane
Non-dispersive
Nitrogen infrared
100mg/Nm3 HJ 692-2014
oxides Emission Standards absorption
for Air Pollutants method
Boiler
Manual Once per from Boilers of Non-dispersive
discharge Shandong
Sulfide monitoring half a year infrared
outlet (DB37/2374- 50mg/Nm3 HJ 629-2011
dioxide absorption
2018)， method
Gravimetric HJ/T 398-
Dust 10mg/Nm3
method 2007
Conditionin Catering Industry
Dyeing and Catering Industry
g product Once per Fume Emission GB18483-
finishing 2.0mg/Nm3 Fume Emission
and canteen half a year Standards 2001
fume Standards
outlet (DB37/597-2006)
Odor Manual Odor Pollutant 20
Triangle odor bag GB/T14675-
concentratio detection Discharge Standards (dimensionles method 1993
n Manual (GB 14554-93), s)
Boundary Ammonia monitoring Once per Regional
Ion selective GB/T 14669-
odor (ammonia half a year Comprehensive 1.5mg/Nm3
electrode method 1993
gas) Emission Standards
Hydrogen for Air Pollutants Gas GB/T14678-
sulfide (GB 16297-1996), 0.06mg/Nm3 chromatography 1993
Dichromate
COD 40mg/L HJ 828-2017
Environmental process
Online Once per 4
monitoring hours Quality Standards Nessler’s reagent
Ammonia
Sewage for Surface Water 2.0mg/L spectrophotometr HJ535-2009
Xiaoyi New nitrogen
treatment (GB3838-2002), y
Hope Liuhe
station Pollutant Discharge Glass electrode
Food Co., pH 6-9 GB 6920-1986
discharge Standards for Urban method
Ltd.
outlet Suspended Manual Once per Sewage Treatment Gravimetric
Plants (GB 18918- 10mg/L GB11901-89
solids monitoring month method
2002) Dilution and
BOD5 10mg/L HJ505-2009
inoculation
110
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
method
Animal and Infrared
vegetable 1mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform fermentation and
1000/L HJ637-2012
groups filtration
membrane
Non-dispersive
Nitrogen infrared
150mg/Nm3 HJ 692-2014
oxides Emission Standards absorption
for Air Pollutants method
from Boilers (GB Non-dispersive
Boiler Sulfide infrared
Manual Once per 13271-2014),
discharge 50mg/Nm3 HJ 629-2011
dioxide monitoring half a year Comprehensive absorption
outlet
Emission Standards method
for Air Pollutants Gravimetric HJ/T 398-
Dust (GB16297-1996), 10mg/Nm3
method 2007
Ringelman Ringelman HJ/T 398-
1
blackness blackness chart 2007
Odor
Triangle odor bag GB/T14675-
concentratio 2000
method 1993
n
Odor
Ammonia
treatment Ion selective GB/T 14669-
(ammonia 4.9kg/h
outlet electrode method 1993
gas)
Hydrogen Gas GB/T14678-
Odor Pollutant 0.33kg/h
sulfide Manual Once per chromatography 1993
Discharge Standards
Odor monitoring half a year
(GB 14554-93), Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Boundary Ammonia
Ion selective GB/T 14669-
odor (ammonia 1.5mg/Nm3
electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 500mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
70mg/L HJ 668-2013
nitrogen hydrochloride
spectrophotometr
y
Online Once per 2
Nessler’s reagent
Ammonia monitoring hours
Water Quality 45mg/L spectrophotometr HJ535-2009
nitrogen
Standards for y
Sewage Discharged Ammonium
Sewage Total molybdate
Yishui New into Urban Sewers 8mg/L HJ 671-2013
treatment phosphorus spectrophotometr
Hope Liuhe (GB/T 31962-2015),
station y
Food Co., Water Pollutant
discharge
Ltd. Discharge Standards Glass electrode
outlet pH 6-8.5 GB 6920-1986
for Meat Processing method
Suspended Industry (GB 13457- Gravimetric
92) 200mg/L GB11901-89
solids method
Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Manual Once per
Animal and Infrared
monitoring quarter
vegetable 50mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform
10000 fermentation and HJ637-2012
groups
filtration
111
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
membrane
Odor
Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Odor Pollutant
Boundary Ammonia Manual Once per
Discharge Standards Ion selective GB/T 14669-
odor (ammonia monitoring half a year 1.5mg/Nm3
(GB 14554-93), electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 50mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
15mg/L HJ 668-2013
nitrogen hydrochloride
spectrophotometr
y
Online Once per 2 Pollutant Discharge
Standards for Urban Nessler’s reagent
Ammonia monitoring hours
Sewage Treatment 5mg/L spectrophotometr HJ535-2009
nitrogen
Plants (GB18918- y
2002) Ammonium
Sewage Total Water Pollutant molybdate
0.5mg/L HJ 671-2013
treatment phosphorus Discharge Standards spectrophotometr
station for Meat Processing y
discharge Industry (GB13457- Glass electrode
pH 6-9 GB 6920-1986
outlet 92) method
Suspended Water Quality Gravimetric
Standard for 10mg/L GB11901-89
solids method
Farmland Irrigation Dilution and
BOD5 (GB5084-2005) Dry 10mg/L inoculation HJ505-2009
Farming Standard. method
Animal and Once per Infrared
vegetable month 1mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Guantao Coliform fermentation and
5000 HJ637-2012
Liuhe Food groups filtration
Co., Ltd. membrane
Non-dispersive
Nitrogen infrared
200mg/Nm3 HJ 692-2014
oxides absorption
1 times a Emission Standards method
Boiler year for Air Pollutants Non-dispersive
discharge
Sulfide from Boilers infrared
outlet 50mg/Nm3 HJ 629-2011
dioxide Manual (GB13271-2014) absorption
monitoring method
Once per Gravimetric HJ/T 398-
Dust 10mg/Nm3
month method 2007
Odor
Triangle odor bag GB/T14675-
concentratio 2000
method 1993
n
Odor Odor Pollutant
Ammonia
treatment Discharge Standards Ion selective GB/T 14669-
(ammonia 4.9kg/h
outlet (GB 14554-93), electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.33kg/h
sulfide Once per chromatography 1993
half a year Catering Industry
Catering Industry
Canteen Fume Emission GB18483-
Fume 2.0mg/Nm3 Fume Emission
fume outlet Standards 2001
Standards
(GB18483-2001),
Odor
Odor Pollutant Triangle odor bag GB/T14675-
Boundary concentratio 20
Discharge Standards method 1993
odor n
(GB 14554-93),
Ammonia 1.5mg/Nm3 Ion selective GB/T 14669-
112
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
(ammonia electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 500mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
70mg/L HJ 668-2013
nitrogen hydrochloride
spectrophotometr
y
Water Quality Nessler’s reagent
Ammonia Standards for 45mg/L spectrophotometr HJ535-2009
nitrogen Sewage Discharged
Sewage y
into Urban Sewers Glass electrode
treatment
pH (GB/T 31962-2015), 6-8.5 GB 6920-1986
station method
Water Pollutant
discharge Suspended Gravimetric
Discharge Standards 400mg/L GB11901-89
outlet solids method
for Meat Processing
Industry (GB 13457- Dilution and
BOD5 92) 300mg/L inoculation HJ505-2009
method
Binzhou Animal and Infrared
Liuhe vegetable 60mg/L spectrophotometr HJ 637-2012
Manual Once per
Longda oil y
monitoring half a year
Farming Multi-tube
Co., Ltd. Coliform fermentation and
10000 HJ637-2012
groups filtration
membrane
Odor
Triangle odor bag GB/T14675-
concentratio 2000
method 1993
n
Odor
Ammonia
treatment Ion selective GB/T 14669-
(ammonia 4.9kg/h
outlet electrode method 1993
gas)
Hydrogen Gas GB/T14678-
Odor Pollutant 0.33kg/h
sulfide chromatography 1993
Discharge Standards
Odor (GB 14554-93), Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Boundary Ammonia
Ion selective GB/T 14669-
odor (ammonia 1.5mg/Nm3
electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 500mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
70mg/L HJ 668-2013
nitrogen hydrochloride
Online Once per 6 spectrophotometr
monitoring hours y
Sewage
Wudi Liuhe Water Pollutant Nessler’s reagent
treatment Ammonia
Xinyang Discharge Standards 45mg/L spectrophotometr HJ535-2009
station nitrogen
Food Co., for Meat Processing y
discharge
Ltd. Industry (GB 13457-
outlet Glass electrode
pH 92) 6-8.5 GB 6920-1986
method
Suspended Gravimetric
300mg/L GB11901-89
solids method
Manual Once per Dilution and
BOD5 monitoring quarter 250mg/L inoculation HJ505-2009
method
Animal and 50mg/L Infrared HJ 637-2012
113
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
vegetable spectrophotometr
oil y
Multi-tube
Coliform fermentation and
10000 HJ637-2012
groups filtration
membrane
Odor
Triangle odor bag GB/T14675-
concentratio 2000
method 1993
n
Odor
Ammonia
treatment Ion selective GB/T 14669-
(ammonia 4.9kg/h
outlet electrode method 1993
gas)
Hydrogen Gas GB/T14678-
Odor Pollutant 0.33kg/h
sulfide chromatography 1993
Discharge Standards
Odor (GB 14554-93), Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Boundary Ammonia
Ion selective GB/T 14669-
odor (ammonia 1.5mg/Nm3
electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 500mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
Online Once per 6 70mg/L HJ 668-2013
nitrogen hydrochloride
monitoring hours
spectrophotometr
y
Water Quality Nessler’s reagent
Ammonia Standards for 45mg/L spectrophotometr HJ535-2009
nitrogen Sewage Discharged
Sewage y
into Urban Sewers
treatment Glass electrode
pH (GB/T 31962-2015), 6-8.5 GB 6920-1986
station method
Water Pollutant
discharge Suspended Gravimetric
Discharge Standards 300mg/L GB11901-89
outlet solids method
Zouping for Meat Processing
Industry (GB 13457- Dilution and
Liuhe
BOD5 92) 250mg/L inoculation HJ505-2009
Livestock
method
Co., Ltd.
Animal and Infrared
vegetable 50mg/L spectrophotometr HJ 637-2012
oil y
Manual Once per Multi-tube
Coliform monitoring half a year fermentation and
10000 HJ637-2012
groups filtration
membrane
Odor
Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Odor Pollutant
Boundary Ammonia
Discharge Standards Ion selective GB/T 14669-
odor (ammonia 1.5mg/Nm3
(GB 14554-93), electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Water Quality Dichromate
COD 500mg/L HJ 828-2017
Standards for process
Sewage Sewage Discharged Flow injection-
Shan County
treatment into Urban Sewers naphthalene
Liuhe Feed Online Once per 6
station Total (GB/T 31962-2015) ethylenediamine
Co., Ltd. monitoring hours 70mg/L HJ 668-2013
discharge nitrogen Notice on Approval hydrochloride
Food Branch
outlet and Release of the spectrophotometr
Modification List to y
Ammonia 4 Standards 21mg/L Nessler’s reagent HJ535-2009
114
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
nitrogen including the spectrophotometr
Comprehensive y
Discharge Standards Ammonium
Total for Water Pollutants molybdate
Along the South-to- 8mg/L HJ 671-2013
phosphorus spectrophotometr
North Water y
Diversion Project in Glass electrode
pH Shandong Province 6-8.5 GB 6920-1986
method
Suspended (L.Z.J.B.F. [2011] Gravimetric
No. 35) 300mg/L GB11901-89
solids method
Notice on Approval
Dilution and
and Release of the
BOD5 Modification List to 250mg/L inoculation HJ505-2009
Add Total Salt method
Content Index Limit
in 4 Standards
Once per including the
quarter Comprehensive
Discharge Standards
Total salt for Water Pollutants 1600mg/L Gravimetric
HJ/T 51-1999
content Along the South-to- method
North Water
Diversion Project in
Shandong Province
(L.Z.J.B.F. [2014]
No. 7)
Emission Standards Non-dispersive
Nitrogen for Air Pollutants infrared
100mg/Nm3 HJ 692-2014
oxides from Boilers (DB37 absorption
2374-2018) method
Ultra-low Emission Non-dispersive
Sulfide No. 2 Modification infrared
List to Shandong 50mg/Nm3 HJ 629-2011
Boiler dioxide Manual absorption
Emission Standards method
discharge monitoring for Air Pollutants Gravimetric HJ/T 398-
outlet Dust 10mg/Nm3
from Boilers method 2007
(L.Z.J.B.F. [2016]
No. 46)
Ringelman Comprehensive Ringelman HJ/T 398-
Emission Standards 1
blackness blackness chart 2007
for Air Pollutants
Once per (GB16297-1996),
Odor half a year Triangle odor bag GB/T14675-
concentratio 2000
method 1993
n
Odor
Ammonia
treatment Ion selective GB/T 14669-
(ammonia 4.9kg/h
outlet electrode method 1993
gas)
Hydrogen Gas GB/T14678-
Odor Pollutant 0.33kg/h
sulfide chromatography 1993
Discharge Standards
Odor (GB 14554-93), Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Boundary Ammonia
Ion selective GB/T 14669-
odor (ammonia 1.5mg/Nm3
electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Online Once per 6 Water Quality Dichromate
COD 300mg/L HJ 828-2017
Sewage monitoring hours Standards for process
Cao County treatment Sewage Discharged Nessler’s reagent
Ammonia
Liuhe Food station into Urban Sewers 21mg/L spectrophotometr HJ535-2009
nitrogen Manual Once per
Co., Ltd. discharge (GB/T 31962-2015), y
outlet monitoring half a year Water Pollutant Glass electrode
pH Discharge Standards 6-8.5 GB 6920-1986
method
115
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Suspended for Meat Processing Gravimetric
300mg/L GB11901-89
solids Industry (GB 13457- method
92) Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Animal and Infrared
vegetable 50mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform fermentation and
/ HJ637-2012
groups filtration
membrane
Odor
Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Odor Pollutant
Boundary Ammonia Manual Once per
Discharge Standards Ion selective GB/T 14669-
odor (ammonia monitoring half a year 1.5mg/Nm3
(GB 14554-93), electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 500mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
70mg/L HJ 668-2013
nitrogen hydrochloride
spectrophotometr
Online Once per 6
y
monitoring hours Water Pollutant Nessler’s reagent
Ammonia Discharge Standards 45mg/L spectrophotometr HJ535-2009
nitrogen for Meat Processing y
Industry (GB 13457- Ammonium
Total 92), molybdate
Sewage 8mg/L HJ 671-2013
Water Quality
treatment phosphorus spectrophotometr
Standards for y
station
Sewage Discharged
discharge 1 times a Glass electrode
pH into Urban Sewers 6-8.5 GB 6920-1986
outlet day method
(GB/T 31962-2015)
Suspended Comprehensive Gravimetric
200mg/L GB11901-89
solids Sewage Discharge method
Standards (GB8978- Dilution and
Jiaxiang BOD5 1996) 250mg/L inoculation HJ505-2009
New Hope method
Liuhe Food Animal and Once per Infrared
Co., Ltd. vegetable quarter 50mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform fermentation and
/ HJ637-2012
groups filtration
membrane
Manual
Odor
monitoring Triangle odor bag GB/T14675-
concentratio 2000
method 1993
n
Odor
Ammonia
treatment Ion selective GB/T 14669-
(ammonia Odor Pollutant 4.9kg/h
outlet electrode method 1993
gas) Discharge Standards
Hydrogen (GB 14554-93), Gas GB/T14678-
Once per 0.33kg/h
sulfide Comprehensive chromatography 1993
half a year
Odor Emission Standards
for Air Pollutants Triangle odor bag GB/T14675-
concentratio 20
method 1993
n (GB16297-1996),
Boundary
Ammonia
odor Ion selective GB/T 14669-
(ammonia 1.5mg/Nm3
electrode method 1993
gas)
Hydrogen 0.06mg/Nm3 Gas GB/T14678-
116
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
sulfide chromatography 1993
Dichromate
COD 60mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
20mg/L HJ 668-2013
nitrogen hydrochloride
spectrophotometr
Online Once per 6
y
monitoring hours Water Pollutant Nessler’s reagent
Ammonia Discharge Standards 10mg/L spectrophotometr HJ535-2009
nitrogen for Meat Processing y
Industry (GB 13457- Ammonium
Total 92), molybdate
Sewage 8mg/L HJ 671-2013
phosphorus Water Quality spectrophotometr
treatment
Standards for y
station
Sewage Discharged
discharge 1 times a Glass electrode
pH into Urban Sewers 6-8.5 GB 6920-1986
outlet day method
(GB/T 31962-2015)
Suspended Comprehensive Gravimetric
30mg/L GB11901-89
solids Sewage Discharge method
Yuncheng Standards (GB8978- Dilution and
Liuhe Food BOD5 1996) 20mg/L inoculation HJ505-2009
Co., Ltd. method
Animal and Once per Infrared
vegetable quarter 5mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform fermentation and
5000/L HJ637-2012
groups Manual filtration
monitoring membrane
Non-dispersive
Nitrogen infrared
100mg/Nm3 HJ 692-2014
oxides Emission Standards absorption
for Air Pollutants method
from Boilers (DB37 Non-dispersive
Boiler Sulfide infrared
Once per 2374-2018),
discharge 50mg/Nm3 HJ 629-2011
dioxide half a year Comprehensive absorption
outlet
Emission Standards method
for Air Pollutants Gravimetric HJ/T 398-
Dust (GB 16297-1996), 10mg/Nm3
method 2007
Ringelman Ringelman HJ/T 398-
1
blackness blackness chart 2007
Dichromate
COD 300mg/L HJ 828-2017
process
Nessler’s reagent
Ammonia Online Once per 6
Comprehensive 30mg/L spectrophotometr HJ535-2009
nitrogen monitoring hours
Sewage Discharge y
Standards (DB Glass electrode
pH 6-8.5 GB 6920-1986
21/1627-2008), method
Suspended Water Pollutant Gravimetric
Sewage 300mg/L GB11901-89
solids Discharge Standards method
treatment
for Meat Processing Dilution and
Anshan station
BOD5 Industry (GB 13457- 250mg/L inoculation HJ505-2009
Liuhe Food discharge
92), method
Co., Ltd. outlet
Water Quality Water quality test
Total Once per Standards for
quarter methods and
dissolved Manual Sewage Discharged 2000mg/L CJ/T 51
standards for
solids monitoring into Urban Sewers urban sewage
(GB/T 31962-2015) Water quality test
Coliform methods and
10000/L CJ/T 51
groups standards for
urban sewage
Boiler Nitrogen Once per Emission Standards Non-dispersive
400mg/Nm3 HJ 692-2014
discharge oxides month for Air Pollutants infrared
117
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outlet from Boilers (GB absorption
13271-2014), method
Mercury Comprehensive Cold atomic
and its Emission Standards 0.05mg/Nm3 absorption HJ 543—2009
compounds for Air Pollutants spectrometry
(GB16297-1996) Non-dispersive
Sulfide infrared
400mg/Nm3 HJ 629-2011
dioxide absorption
method
Gravimetric HJ/T 398-
Dust 80mg/Nm3
method 2007
Ringelman Ringelman HJ/T 398-
1
blackness blackness chart 2007
Odor
Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Ammonia
Odor Pollutant Ion selective GB/T 14669-
(ammonia 1.5mg/Nm3
Boundary Discharge Standards electrode method 1993
gas)
(GB 14554-93),
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Particulate Gravimetric GB/T 15432-
1mg/Nm3
matter method 1995
Dichromate
COD 50mg/L HJ 828-2017
process
Nessler’s reagent
Ammonia
8mg/L spectrophotometr HJ535-2009
nitrogen
y
Online Once per 6
Gas-Phase
monitoring hours
Total molecular HJ/T 199-
15mg/L
nitrogen absorption 2005
spectrometry
Comprehensive Glass electrode
pH Sewage Discharge 6-8.5 GB 6920-1986
method
Standards (DB
Sewage Suspended Gravimetric
21/1627-2008), 20mg/L GB11901-89
treatment solids method
Water Pollutant
station Dilution and
Discharge Standards
discharge BOD5 10mg/L inoculation HJ505-2009
for Meat Processing
outlet method
Industry (GB 13457-
92), Water quality test
Total
methods and
dissolved 2000mg/L CJ/T 51
standards for
solids
Panjin Liuhe urban sewage
Farming Animal and Infrared
Co., Ltd. vegetable 20mg/L spectrophotometr HJ 637-2012
oil y
Water quality test
Coliform methods and
10000/L CJ/T 51
groups Manual Once per standards for
monitoring month urban sewage
Non-dispersive
Nitrogen infrared
400mg/Nm3 HJ 692-2014
oxides absorption
method
Mercury Cold atomic
and its Emission Standards 0.05mg/Nm3 absorption HJ 543—2009
Boiler compounds spectrometry
for Air Pollutants
discharge
from Boilers (GB Non-dispersive
outlet
Sulfide 13271-2014), infrared
400mg/Nm3 HJ 629-2011
dioxide absorption
method
Gravimetric HJ/T 398-
Dust 80mg/Nm3
method 2007
Ringelman 1 Ringelman HJ/T 398-
118
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
blackness blackness chart 2007
Odor
Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Ammonia
Odor Pollutant Ion selective GB/T 14669-
(ammonia 1.5mg/Nm3
Boundary Discharge Standards electrode method 1993
gas)
(GB 14554-93),
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Particulate Gravimetric GB/T 15432-
1mg/Nm3
matter method 1995
Dichromate
COD Notice on Approval 60mg/L HJ 828-2017
process
and Release of the
Modification List to Nessler’s reagent
Ammonia
4 Standards 10mg/L spectrophotometr HJ535-2009
nitrogen
including the y
Comprehensive Glass electrode
pH 6-8.5 GB 6920-1986
Discharge Standards method
Sewage Suspended for Water Pollutants Gravimetric
30mg/L GB11901-89
treatment solids Along the South-to- method
Once per
station North Water Dilution and
quarter
discharge BOD5 Diversion Project in 20mg/L inoculation HJ505-2009
outlet Shandong Province method
Animal and (L.Z.J.B.F. [2011] Infrared
vegetable No. 35), 5mg/L spectrophotometr HJ 637-2012
oil Water Pollutant y
Discharge Standards
Multi-tube
Dong’e for Meat Processing
Coliform fermentation and
Liuhe Lvjia Manual Industry (GB 13457- 10000/L HJ637-2012
groups filtration
Food Co., monitoring 92)
membrane
Ltd.
Odor Odor Pollutant Triangle odor bag GB/T14675-
concentratio Discharge Standards 2000
method 1993
n (GB 14554-93),
Odor
Ammonia Notice on the
treatment Ion selective GB/T 14669-
(ammonia Implementation of 4.9kg/h
outlet electrode method 1993
gas) Special Emission
Hydrogen Limits of Air Gas GB/T14678-
0.33kg/h
sulfide Once per Pollutants in chromatography 1993
Odor half a year Beijing-Tianjin-
Triangle odor bag GB/T14675-
concentratio Hebei Air Pollution 20
Transmission method 1993
n
Boundary Ammonia Channel Cities
(Ministry of Ion selective GB/T 14669-
odor (ammonia 1.5mg/Nm3
Environmental electrode method 1993
gas)
Hydrogen Protection Notice Gas GB/T14678-
No. 9, 2018) 0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD Water Pollutant 60mg/L HJ 828-2017
Discharge Standards process
Nessler’s reagent
Ammonia Online Once per 6 for Down Industry
(GB 21901-2008), 10mg/L spectrophotometr HJ535-2009
nitrogen monitoring hours
Notice on Approval y
and Release of the Glass electrode
Shen County pH 6-8.5 GB 6920-1986
Sewage Modification List to method
New Hope
treatment Suspended 4 Standards Gravimetric
Liuhe 30mg/L GB11901-89
station solids including the method
Qingsizhai
discharge Comprehensive Dilution and
Food Co.,
outlet BOD5 Discharge Standards 15mg/L inoculation HJ505-2009
Ltd.
Manual Once per for Water Pollutants method
monitoring month Along the South-to- Methylene blue
Anionic North Water 3mg/L spectrophotometr /
surfactant Diversion Project in ic method
Shandong Province
Animal and Infrared
(L.Z.J.B.F. [2011] 5mg/L HJ 637-2012
vegetable spectrophotometr
119
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
oil No. 35), y
Water Pollutant
Discharge Standards Multi-tube
Coliform fermentation and
for Meat Processing 10000/L HJ637-2012
groups filtration
Industry (GB 13457-
92) membrane
Odor
Triangle odor bag GB/T14675-
concentratio 2000
method 1993
n
Ammonia Odor Pollutant
Odor Ion selective GB/T 14669-
(ammonia Discharge Standards 4.9kg/h
treatment electrode method 1993
gas) (GB 14554-93),
outlet
Particulate Modification List Gravimetric GB/T 15432-
10mg/Nm3
matter No. 2 to Shandong method 1995
Hydrogen Once per Regional Gas GB/T14678-
0.33kg/h
sulfide half a year Comprehensive Air chromatography 1993
Odor Pollutant Emission
Standards Triangle odor bag GB/T14675-
concentratio 20
(DB/372376-2013) method 1993
n
Boundary Ammonia (L.Z.J.B.F. [2016]
No. 46) Ion selective GB/T 14669-
odor (ammonia 1.5mg/Nm3
electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 50mg/L HJ 828-2017
process
Water Pollutant Nessler’s reagent
Ammonia
Discharge Standards 5mg/L spectrophotometr HJ535-2009
nitrogen for Down Industry y
Online Once per 6 (GB 21901-2008),
monitoring hours Naphthalene
Total Notice on Approval ethylenediamine
and Release of the 0.3mg/L HJ 667-2013
phosphorus hydrochloride
Modification List to spectrometry
4 Standards Glass electrode
pH including the 6-8.5 GB 6920-1986
method
Sewage Comprehensive
Suspended Gravimetric
treatment Discharge Standards 20mg/L GB11901-89
solids method
station for Water Pollutants
discharge Along the South-to- Dilution and
outlet BOD5 North Water 10mg/L inoculation HJ505-2009
Diversion Project in method
Shandong Province Methylene blue
Anionic
3mg/L spectrophotometr /
surfactant Once per (L.Z.J.B.F. [2011]
Yanggu No. 35), ic method
month
Liuhe Luxin Animal and Water Pollutant Infrared
Food Co., vegetable Discharge Standards 3mg/L spectrophotometr HJ 637-2012
Ltd. oil for Meat Processing y
Industry (GB 13457- Multi-tube
Coliform 92) fermentation and
5000/L HJ637-2012
groups filtration
Manual membrane
monitoring
Odor
Triangle odor bag GB/T14675-
concentratio Odor Pollutant 2000
method 1993
n Discharge Standards
Ammonia (GB 14554-93),
Odor Ion selective GB/T 14669-
(ammonia Modification List 4.9kg/h
treatment electrode method 1993
gas) No. 2 to Shandong
outlet
Particulate Once per Regional Gravimetric GB/T 15432-
10mg/Nm3
matter half a year Comprehensive Air method 1995
Hydrogen Pollutant Emission Gas GB/T14678-
Standards 0.33kg/h
sulfide chromatography 1993
Odor (DB/372376-2013)
(L.Z.J.B.F. [2016] Triangle odor bag GB/T14675-
Boundary concentratio 20
No. 46) method 1993
odor n
Ammonia 1.5mg/Nm3 Ion selective GB/T 14669-
120
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
(ammonia electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 500mg/L HJ 828-2017
process
Nessler’s reagent
Ammonia
45mg/L spectrophotometr HJ535-2009
nitrogen
y
Gas-Phase
Total molecular HJ/T 199-
Online Once per 6 70mg/L
nitrogen absorption 2005
monitoring hours
spectrometry
Naphthalene
Total Water Pollutant ethylenediamine
8mg/L HJ 667-2013
phosphorus Discharge Standards hydrochloride
for Meat Processing spectrometry
Sewage Glass electrode
Industry (GB 13457-
treatment pH 6-8.5 GB 6920-1986
92), method
station
Suspended Water Quality Gravimetric
discharge 300mg/L GB11901-89
solids Standards for method
outlet
Sewage Discharged Dilution and
BOD5 into Urban Sewers 250mg/L inoculation HJ505-2009
(GB/T 31962-2015) method
Weifang
Tianhui Methylene blue
Anionic
Food Co., 20mg/L spectrophotometr /
surfactant Once per
Ltd. ic method
quarter
Animal and Infrared
vegetable 50mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform fermentation and
Manual 5000/L HJ637-2012
groups filtration
monitoring membrane
Duck Shandong Regional
Particulate Gravimetric GB/T 15432-
feather Comprehensive Air 30mg/Nm3
matter method 1995
workshop Pollutant Emission
Odor Standards
(DB37/2376- Triangle odor bag GB/T14675-
concentratio 20
method 1993
n Once per 2013)，
Ammonia Odor Pollutant
half a year Ion selective GB/T 14669-
Boundary (ammonia Discharge Standards 1.5mg/Nm3
odor (GB 14554-93), electrode method 1993
gas)
Emission Standards
Hydrogen for Air Pollutants Gas GB/T14678-
sulfide from Boilers (DB37 0.06mg/Nm3 chromatography 1993
2374-2018)
Dichromate
COD 500mg/L HJ 828-2017
process
Nessler’s reagent
Ammonia
45mg/L spectrophotometr HJ535-2009
nitrogen Water Pollutant y
Discharge Standards Gas-Phase
for Meat Processing
Sewage Total molecular HJ/T 199-
Weifang Online Once per Industry (GB 13457- 70mg/L
treatment nitrogen absorption 2005
HeshengYua monitoring hour 92),
station spectrometry
n Food Co., Water Quality
discharge Naphthalene
Ltd. Standards for
outlet Total ethylenediamine
Sewage Discharged 8mg/L HJ 667-2013
phosphorus hydrochloride
into Urban Sewers
(GB/T 31962-2015) spectrometry
Glass electrode
pH 6-8.5 GB 6920-1986
method
Suspended Manual Once per Gravimetric
300mg/L GB11901-89
solids monitoring quarter method
121
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Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Animal and Infrared
vegetable 50mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform fermentation and
5000/L HJ637-2012
groups filtration
membrane
Catering Industry
Canteen GB18483-
Fume 2.0mg/Nm3 Fume Emission
outlet 2001
Standards
Odor Shandong Regional Triangle odor bag GB/T14675-
concentratio Comprehensive Air 2000
method 1993
n Pollutant Emission
Odor
Ammonia Standards
treatment Ion selective GB/T 14669-
(ammonia (DB37/2376- 8.7kg/h
outlet electrode method 1993
gas) 2013)，
Once per
Hydrogen Odor Pollutant Gas GB/T14678-
half a year 0.58kg/h
sulfide Discharge Standards chromatography 1993
Odor (GB 14554-93),
Emission Standards Triangle odor bag GB/T14675-
concentratio 20
method 1993
n for Air Pollutants
Boundary Ammonia from Boilers (DB37
2374-2018) Ion selective GB/T 14669-
odor (ammonia 1.5mg/Nm3
electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 70mg/L HJ 828-2017
process
Online Once per 6
monitoring hours Nessler’s reagent
Ammonia
15mg/L spectrophotometr HJ535-2009
nitrogen
y
Glass electrode
pH 6-8.5 GB 6920-1986
method
Water Pollutant Ammonium
Total Discharge Standards molybdate
0.5mg/L HJ 670-2013
Sewage phosphorus for Meat Processing spectrophotometr
treatment Industry (GB 13457- y
station Suspended 92), Gravimetric
60mg/L GB11901-89
discharge solids Comprehensive method
outlet Once per Sewage Discharge Dilution and
BOD5 month Standards (GB8978- 25mg/L inoculation HJ505-2009
Luoyang 1996) method
Liuhe
Huiquan Animal and Infrared
vegetable 15mg/L spectrophotometr HJ 637-2012
Food Co.,
Ltd. oil y
Manual
Multi-tube
monitoring
Coliform fermentation and
5000/L HJ637-2012
groups filtration
membrane
Catering Industry Catering Industry
Canteen GB18483-
Fume Fume Emission 2.0mg/Nm Fume Emission
vent 2001
Standards Standards
Odor
Triangle odor bag GB/T14675-
concentratio 20
Once per method 1993
n
half a year Odor Pollutant
Boundary Ammonia
Discharge Standards Ion selective GB/T 14669-
odor (ammonia 1.5mg/Nm3
(GB 14554-93) electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Hebi Liuhe Sewage COD Online Once per 2 Water Pollutant 350mg/L Dichromate HJ 828-2017
122
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Zhizhen treatment monitoring hours Discharge Standards process
Food Co., station for Meat Processing Nessler’s reagent
Ltd. discharge Ammonia Industry (GB 13457- 35mg/L spectrophotometr HJ535-2009
outlet nitrogen 92), y
Once per Comprehensive Glass electrode
pH Sewage Discharge 6-8.5 GB 6920-1986
month method
Standard (GB8978-
Ammonium
Total Once per 1996)， molybdate
concentration limits 4mg/L HJ 670-2013
phosphorus day spectrophotometr
specified in sewage y
Suspended discharge Gravimetric
agreements 60mg/L GB11901-89
solids method
Dilution and
BOD5 25mg/L inoculation HJ505-2009
method
Animal and Once per Infrared
vegetable month 15mg/L spectrophotometr HJ 637-2012
oil y
Manual
monitoring Multi-tube
Coliform fermentation and
5000/L HJ637-2012
groups filtration
membrane
Catering Industry Catering Industry
Canteen GB18483-
Fume Fume Emission 2.0mg/Nm Fume Emission
vent 2001
Standards Standards
Odor
Triangle odor bag GB/T14675-
concentratio 20
Once per method 1993
n
half a year Odor Pollutant
Boundary Ammonia
Discharge Standards Ion selective GB/T 14669-
odor (ammonia 1.5mg/Nm3
(GB 14554-93) electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 500mg/L HJ 828-2017
process
Nessler’s reagent
Ammonia
45mg/L spectrophotometr HJ535-2009
nitrogen
y
Naphthalene
Total ethylenediamine
Online Once per 6 70mg/L HJ 668-2013
nitrogen hydrochloride
monitoring hours
spectrometry
Sewage Water Quality Glass electrode
pH 6.5-9.5 GB 6920-1986
treatment Standards for method
station Sewage Discharged Ammonium
discharge Total into Urban Sewers molybdate
outlet (GB/T 31962-2015) 8mg/L HJ 670-2013
phosphorus spectrophotometr
Laiwu New
y
Hope Liuhe
Food Co., Suspended Gravimetric
400mg/L GB11901-89
Ltd. solids method
Dilution and
BOD5 Once per 350mg/L inoculation HJ505-2009
quarter method
Animal and Infrared
vegetable 100mg/L spectrophotometr HJ 637-2012
oil Manual y
monitoring Ultra-low Emission Controlled
Nitrogen
No. 2 Modification 200mg/Nm3 potential HJ 693-2014
oxides
List to Shandong electrolysis
Boiler
Sulfide Once per Emission Standards
exhaust 50mg/Nm3 Iodometry HJ/T 56-2000
dioxide half a year for Air Pollutants
stack
from Boilers
(L.Z.J.B.F. [2016] Boiler dust test
Dust 10mg/Nm3 GB 5468-91
No. 46) method
123
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Odor
Triangle odor bag GB/T14675-
concentratio 2000
method 1993
n
Odor Odor Pollutant
Ammonia
treatment Discharge Standards Ion selective GB/T 14669-
(ammonia 4.9kg/h
outlet (GB 14554-93), electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.33kg/h
sulfide chromatography 1993
Dichromate
COD 500mg/L HJ 828-2017
process
Nessler’s reagent
Ammonia
45mg/L spectrophotometr HJ535-2009
nitrogen
y
Naphthalene
Total ethylenediamine
70mg/L HJ 668-2013
nitrogen hydrochloride
spectrometry
Water Quality Glass electrode
pH Standards for 6.0-8.5 GB 6920-1986
method
Sewage Discharged
Sewage Ammonium
into Urban Sewers
treatment Total molybdate
Once per (GB/T 31962-2015), 8mg/L HJ 670-2013
station phosphorus spectrophotometr
half a year Water Pollutant
discharge y
Discharge Standards
outlet Suspended Gravimetric
for Meat Processing 300mg/L GB11901-89
solids Industry (GB 13457- method
92) Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Dezhou
Multi-tube
Liuhe Coliform Manual fermentation and
Zhikang / HJ637-2012
groups monitoring filtration
Food Co.,
membrane
Ltd.
Animal and Infrared
vegetable 50mg/L spectrophotometr HJ 637-2012
oil y
Ringelman Ringelman HJ/T 398-
Emission Standards Level 1
blackness blackness chart 2007
for Air Pollutants
Controlled
Nitrogen from Boilers (DB37
Boiler 150mg/Nm3 potential HJ 693-2014
oxides 1 times a 2374-2018),
exhaust electrolysis
year Emission Standards
stack Sulfide for Air Pollutants 50mg/Nm3 Iodometry HJ/T 56-2000
dioxide from Boilers (GB
13271-2014), Boiler dust test
Dust 10mg/Nm3 GB 5468-91
method
Odor
Triangle odor bag GB/T14675-
concentratio 2000
method 1993
n
Odor Odor Pollutant
Ammonia Once per
treatment Discharge Standards Ion selective GB/T 14669-
(ammonia half a year 4.9kg/h
outlet (GB 14554-93), electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.33kg/h
sulfide chromatography 1993
Notice on Approval Dichromate
COD 50mg/L HJ 828-2017
and Release of the process
Modification List to Nessler’s reagent
Ammonia
Sewage 4 Standards 5mg/L spectrophotometr HJ535-2009
Fei County nitrogen
treatment including the y
Liuhe Online Once per 6
station Comprehensive Naphthalene
Huahai Food monitoring hours
discharge Total Discharge Standards ethylenediamine
Co., Ltd. 0.3mg/L HJ 667-2013
outlet phosphorus for Water Pollutants hydrochloride
Along the South-to- spectrometry
North Water Glass electrode
pH Diversion Project in 6-8.5 GB 6920-1986
method
124
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Suspended Shandong Province Gravimetric
20mg/L GB11901-89
solids (L.Z.J.B.F. [2011] method
No. 35), Gas-Phase
Total Water Pollutant molecular HJ/T 199-
Discharge Standards 20mg/L
nitrogen absorption 2005
for Meat Processing spectrometry
Industry (GB 13457- Dilution and
BOD5 92), 10mg/L inoculation HJ505-2009
Comprehensive method
Discharge Standards
Animal and Infrared
for Water Pollutants
vegetable 3mg/L spectrophotometr HJ 637-2012
oil Along the South-to- y
North Water
Once per Diversion Project in
month Shandong Province
(DB37/ 599－2006),
Modification List to
Manual Add Total Nitrogen
monitoring Limit in 4 Standards Multi-tube
Coliform including the fermentation and
Comprehensive 10000/L HJ637-2012
groups filtration
Discharge Standards membrane
for Water Pollutants
Along the South-to-
North Water
Diversion Project in
Shandong Province
(DB37/599-2006)
Odor
Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Odor Pollutant
Boundary Ammonia Once per
Discharge Standards Ion selective GB/T 14669-
odor (ammonia half a year 1.5mg/Nm3
(GB 14554-93) electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 300mg/L HJ 828-2017
process
Nessler’s reagent
Ammonia
30mg/L spectrophotometr HJ535-2009
nitrogen
y
Online Once per 2
Total Ammonium molybdate
monitoring hours 5mg/L
phosphorus Water Pollutant spectrophotometry
Total Discharge Standards Spectrophotometr
50mg/L
Sewage nitrogen for Meat Processing y
treatment Industry (GB 13457- Glass electrode
pH 6-8.5 GB 6920-1986
station 92), method
discharge Suspended Comprehensive Gravimetric
outlet Sewage Discharge 300mg/L GB11901-89
solids method
Fuxin Liuhe Standards (DB
Farming Dilution and
BOD5 21/1627-2008) 250mg/L inoculation HJ505-2009
Co., Ltd.
Food Branch Once per method
Animal and quarter Infrared
vegetable 50mg/L spectrophotometr HJ 637-2012
oil y
Coliform Manual Fermentation
/ GB5750
groups monitoring method
Non-dispersive
Nitrogen Once per infrared
200mg/Nm3 HJ 692-2014
oxides month Emission Standards absorption
Boiler method
for Air Pollutants
discharge
from Boilers (GB Non-dispersive
outlet
Sulfide 1 times a 13271-2014), infrared
50mg/Nm3 HJ 629-2011
dioxide year absorption
method
125
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Gravimetric HJ/T 398-
Dust 20mg/Nm3
method 2007
Ringelman Ringelman HJ/T 398-
Level 1
blackness blackness chart 2007
Odor
Triangle odor bag GB/T14675-
concentratio 2000
method 1993
n
Odor
Ammonia
treatment Ion selective GB/T 14669-
(ammonia 4.9kg/h
outlet electrode method 1993
gas)
Hydrogen Gas GB/T14678-
Odor Pollutant 0.33kg/h
sulfide Once per chromatography 1993
Discharge Standards
Odor half a year
(GB 14554-93), Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Boundary Ammonia
Ion selective GB/T 14669-
odor (ammonia 1.5mg/Nm3
electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 500mg/L HJ 828-2017
process
Nessler’s reagent
Ammonia
25mg/L spectrophotometr HJ 535-2009
nitrogen
y
Water Pollutant Naphthalene
Total Online Once per 6 Discharge Standards ethylenediamine GB/T 16488-
for Down Industry 8mg/L
phosphorus monitoring hours hydrochloride 1996
(GB 21901-2008), spectrometry
Notice on Approval Upper limit
and Release of the 8.5
pH Modification List to dimensionless, Glass electrode GB 6920-1986
4 Standards method
lower limit: 6
including the dimensionless
Sewage Comprehensive
Suspended Gravimetric
treatment Discharge Standards 300mg/L GB11901-89
solids method
station for Water Pollutants
discharge Along the South-to- Dilution and
outlet BOD5 North Water 250mg/L inoculation HJ505-2009
Diversion Project in method
Shandong Province Alkaline
Taiqian New (L.Z.J.B.F. [2011] potassium
Hope Liuhe Total No. 35), persulfate
Luxin Food 45mg/L HJ 636-2012
nitrogen Once per Water Pollutant digestion UV
Co., Ltd. month Discharge Standards spectrophotometr
for Meat Processing y
Animal and Industry (GB 13457- Infrared
vegetable 92) 50mg/L spectrophotometr HJ 637-2012
oil y
Manual Multi-tube
Coliform monitoring fermentation and
10000mg/L HJ637-2012
groups filtration
membrane
Ringelman Odor Pollutant Ringelman HJ/T 398-
1mg/Nm3
blackness Discharge Standards blackness chart 2007
(GB 14554-93), Naphthalene
Nitrogen Modification List ethylenediamine
Boiler 30mg/Nm3 HJ/T 43-1999
oxides No. 2 to Shandong hydrochloride
exhaust
Once per Regional spectrometry
treatment
half a year Comprehensive Air Determination of
discharge
Pollutant Emission particulate matter
outlet
Particulate Standards in stationary GB/T 16157-
(DB/372376-2013) 5mg/Nm3
matter pollution source 1996
(L.Z.J.B.F. [2016] emissions and
No. 46) sampling method
126
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
for gaseous
pollutants
Sulfide
10mg/Nm3 Iodometry HJ/T 56-2000
dioxide
Odor
Triangle odor bag GB/T14675-
concentratio 2000mg/Nm3
Sewage method 1993
n
treatment
Ammonia
station Ion selective GB/T 14669-
(ammonia 1.5mg/Nm3
discharge electrode method 1993
gas)
outlet
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Alkaline
potassium
Total persulfate
70mg/L HJ 636-2012
nitrogen digestion UV
spectrophotometr
y
Online Once per 6 6-8.5
Glass electrode GB/T 6920-
pH monitoring hours Pollutant Discharge (dimensionles
method 1986
Standards for Urban s)
Sewage Treatment Nessler’s reagent
Sewage Ammonia
Plants 45mg/L spectrophotometr HJ 535-2009
treatment nitrogen
(GB 18918-2002); y
station
Water Pollutant Dichromate
discharge COD 500mg/L HJ 828-2017
Discharge Standards process
outlet
for Meat Processing Dilution and
BOD5 Industry (GB 13457- 250mg/L inoculation HJ 505-2009
92) method
Animal and Infrared
vegetable Once per 50mg/L spectrophotometr HJ 637-2018
oil month y
Suspended Gravimetric GB/T 11901-
300mg/L
solids method 1989
Fecal Multi-tube
10000/L HJ 347.2-2018
Laoting coliforms fermentation
Liuhe Ammonia Nessler’s reagent
Xinmeizi (ammonia 4.9kg/h spectrophotometr HJ 533-2009
Food Co., gas) y
Ltd. Supplement
5.4.10.3 of the
Waste gas
Fourth Edition
outlet of Methylene blue
Hydrogen of Air and
sewage 0.33kg/h spectrophotometr
sulfide Exhaust Gas
treatment ic method
Manual Monitoring
station
monitoring and Analysis
Methods
Odor 2000
Triangle odor bag GB/T 14675-
concentratio Odor Pollutant (dimensionles
method 1993
n Once per Discharge Standards s)
Ammonia half a year (GB 14554-93), Nessler’s reagent
(ammonia 4.9kg/h spectrophotometr HJ 533-2009
gas) y
Supplement
5.4.10.3 of the
Discharge Fourth Edition
Methylene blue
outlet of Hydrogen of Air and
0.33kg/h spectrophotometr
slaughtering sulfide Exhaust Gas
ic method
workshop Monitoring
and Analysis
Methods
Odor 2000
Triangle odor bag GB/T 14675-
concentratio (dimensionles
method 1993
n s)
127
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Dichromate
COD 50mg/L HJ 828-2017
process
Nessler’s reagent
Ammonia Online Once per 1
5mg/L spectrophotometr HJ 668-2013
Sewage nitrogen monitoring hours Water Pollutant y
treatment Discharge Standards
Glass electrode
station pH for Meat Processing 6--9 HJ535-2009
method
discharge Industry (GB 13457-
Suspended
outlet 92) Gravimetric
60mg/L GB11901-89
Qixia solids method
Refrigeratio Animal and Infrared
n Factory of vegetable 15mg/L spectrophotometr HJ 637-2012
Shandong oil y
New Hope Odor Pollutant Methylene blue
Liuhe Group Boundary Foul smell Discharge Standards 0.1mg/Nm3 spectrophotometr
GB/T14675-
Co., Ltd. odor 1993
Manual Once per (GB 14554-93), ic method
monitoring quarter Controlled
Nitrogen
200mg/Nm3 potential HJ693-2014
oxides
Emission Standards electrolysis
Boiler
for Air Pollutants Controlled
exhaust Sulfide
from Boilers (GB 50mg/m potential HJ/T57-2000
stack dioxide
13271-2014) electrolysis
Particulate Gravimetric GB/T15432-
20mg/Nm3
matter method 1995
Dichromate
COD COD 30mg/l HJ 828-2017
process
Ammonia Nessler’s reagent
Ammonia
nitrogen spectrophotometr HJ535-2009
nitrogen
1.5mg/l y
Glass electrode
pH pH6-9 GB 6920-1986
method
Comprehensive Infrared
Sewage
treatment Animal oil Discharge Standards ≤5mg/L spectrophotometr HJ 637-2012
Online Once per 24 for Water Pollutants y
station
monitoring hours in Shandong Ammonium
discharge Total
Total Peninsula Watershed molybdate
outlet phosphorus HJ 671-2013
phosphorus (DB37/676-2007) spectrophotometr
0.5mg/l
y
Laiyang Flow injection-
Tianye Food naphthalene
Co., Ltd. Total Total nitrogen ethylenediamine
HJ 668-2013
nitrogen 15mg/l hydrochloride
spectrophotometr
y
Ultra-low Emission Laser
Nitrogen GB/T16157-
No. 2 Modification 200mg/m backscattering
oxides 1996
List to Shandong method
Emission Standards Ultraviolet
Boiler Sulfide for Air Pollutants differential
Manual Once per 50mg/m HJ/T397-2007
discharge dioxide from Boilers optical absorption
monitoring quarter
outlet (L.Z.J.B.F. [2016] spectroscopy
No. 46)
Particulate Odor Pollutant
Discharge Standards 20mg/m
matter
(GB 14554-93)
Dichromate
COD 450mg/L HJ 828-2017
process
Nessler’s reagent
Sewage Ammonia Gravimetric method
Tai'an 35mg/L spectrophotometr HJ535-2009
treatment nitrogen for determination of
Taishan Online Once per 2 y
station suspended solids in
Liuhe Food monitoring hours Naphthalene
discharge water GB11901-
Co., Ltd. Total ethylenediamine
outlet 1989 70mg/L HJ 668-2013
nitrogen hydrochloride
spectrometry
pH 6-8.5 Glass electrode GB 6920-1986
128
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method
Ammonium
Total molybdate
8mg/L HJ 670-2013
phosphorus spectrophotometr
y
Suspended Gravimetric
256mg/L GB11901-89
solids method
Dilution and
BOD5 Once per 150mg/L inoculation HJ505-2009
quarter method
Animal and Infrared
vegetable 50mg/L spectrophotometr HJ 637-2012
oil y
Controlled
Nitrogen Once per
100mg/Nm3 potential HJ 693-2014
oxides month
electrolysis
Emission Standards
Boiler Particulate Gravimetric GB/T15432-
Manual for Air Pollutants 10mg/Nm3
exhaust matter method 1995
monitoring from Boilers
stack Sulfide Once per (DB37/2374-2018) 50mg/Nm3 Iodometry HJ/T 56-2000
dioxide year
Ringelman Boiler dust test
10mg/Nm3 GB 5468-91
blackness method
Odor
Triangle odor bag GB/T14675-
concentratio 2000
method 1993
n
Odor
Ammonia Once per
treatment Ion selective GB/T 14669-
(ammonia half a year 4.9kg/h
outlet electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.33kg/h
sulfide chromatography 1993
Dichromate
COD 500mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
70mg/L HJ 668-2013
nitrogen hydrochloride
spectrophotometr
y
Online Once per 2
Nessler’s reagent
Ammonia monitoring hours
45mg/L spectrophotometr HJ535-2009
nitrogen Water Quality y
Standards for Ammonium
Total Sewage Discharged molybdate
Sewage 8mg/L HJ 671-2013
into Urban Sewers
treatment phosphorus spectrophotometr
(GB/T 31962-2015), y
station
Shandong Water Pollutant
discharge Glass electrode
New Hope pH Discharge Standards 6-8.5 GB 6920-1986
outlet method
Liuhe Group for Meat Processing
Suspended Industry (GB 13457- 200mg/L Gravimetric
Co., Ltd. GB11901-89
solids 92) method
Linyi Branch
Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Animal and Manual Once per Infrared
vegetable monitoring quarter 50mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform fermentation and
10000 HJ637-2012
groups filtration
membrane
Non-dispersive
Boiler Nitrogen Once per Emission Standards infrared
Manual for Air Pollutants 200mg/Nm3 HJ 692-2014
discharge oxides month absorption
monitoring from Boilers (DB37
outlet method
2374-2018)
Sulfide 1 times a 50mg/Nm3 Non-dispersive HJ 629-2011
129
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
dioxide year infrared
absorption
method
Gravimetric HJ/T 398-
Dust 10mg/Nm3
method 2007
Ringelman Ringelman HJ/T 398-
1
blackness blackness chart 2007
Odor
Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Odor Pollutant
Boundary Ammonia Manual Once per
Discharge Standards Ion selective GB/T 14669-
odor (ammonia monitoring half a year 1.5mg/Nm3
(GB 14554-93), electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 500mg/L HJ 828-2017
process
Nessler’s reagent
Ammonia
45mg/L spectrophotometr HJ 535-2009
nitrogen Online Continuous y
monitoring monitoring
Glass electrode
pH 6.5-9.5 GB 6920-1986
method
Velocity method (ultrasonic flow
Flow \
meter)
Alkaline
potassium
Total persulfate
70mg/L HJ 636-2012
Sewage nitrogen Water Quality digestion UV
treatment Standards for spectrophotometr
station Sewage Discharged y
discharge into Urban Sewers Ammonium
outlet Total (GB/T 31962-2015) molybdate GB/T11893-
8mg/L
phosphorus spectrophotometr 1989
Manual Once per y
Suspended monitoring half a year Gravimetric GB/T11901-
400mg/L
solids method 1989
Dilution and
BOD5 350mg/L inoculation HJ505-2009
Qingdao method
Liuhe Wanfu
Animal and Infrared
Food Co.,
vegetable 100mg/L spectrophotometr HJ 637-2018
Ltd.
oil y
Coliform Enzyme substrate
\ HJ 1001-2018
groups technique
Controlled
Nitrogen Once per
200mg/Nm3 potential HJ 693-2014
oxides month Shandong Province electrolysis
Regional Non-dispersive
Sulfide Comprehensive Air infrared
Boiler Pollutant Emission 50mg/Nm3 HJ 629-2011
dioxide Manual absorption
discharge Standards
monitoring method
outlet 1 times a (DB37/2376-2019),
Comprehensive Air 10mg/Nm3 Gravimetric HJ/T 398-
Dust year
Pollutant Emission method 2007
Standards Catering Industry
Fume GB18483-
(GB16279-1996) 2.0mg/Nm3 Fume Emission
blackness 2001
Standards
Infrared
Frying Once per DB37/597-
Fume 1.5mg/Nm3 spectrophotometr
chimney half a year 2006
Shandong Catering y
Manual Industry Fume Infrared
Smoking Once per DB37/597-
Fume monitoring Emission Standards 1.5mg/Nm3 spectrophotometr
chimney half a year 2006
(DB37/597-2006) y
Canteen 1 times a Infrared DB37/597-
Fume 1.5mg/Nm3
chimney year spectrophotometr 2006
130
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y
Ammonia Nessler’s reagent
(ammonia 4.9kg/h spectrophotometr HJ 533-2009
gas) y
Supplement
5.4.10.3 of the
Waste gas
Fourth Edition
outlet of Odor Pollutant Methylene blue
Hydrogen Once per of Air and
sewage Discharge Standards 0.33kg/h spectrophotometr
sulfide quarter Exhaust Gas
treatment (GB 14554-93) ic method
Manual Monitoring
station
monitoring and Analysis
Methods
Odor 2000
Triangle odor bag GB/T 14675-
concentratio (dimensionles
method 1993
n s)
Boundary Noise
Boundary Once per Emission Standards Daytime 60, Multi-functional GB12348-
Noise
noise quarter for Industrial nighttime 50 sound level meter 2008
Enterprises
Odor
Triangle odor bag GB/T14675-
concentratio 20
method 1993
n
Odor Pollutant
Boundary Ammonia Manual Once per
Discharge Standards Ion selective GB/T 14669-
odor (ammonia monitoring half a year 1.5mg/Nm3
(GB 14554-93) electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 40mg/L HJ 828-2017
process
Nessler’s reagent
Ammonia Online Once per 1
2mg/L spectrophotometr HJ 535-2009
nitrogen monitoring hours
y
Glass electrode
pH June 9 GB 6920-1986
method
Ammonium
Total Environmental molybdate GB/T11893-
Quality Standards 0.4mg/L
phosphorus spectrophotometr 1989
for Surface Water y
Suspended (GB3838-2002), Gravimetric
Sewage Water Pollutant 100mg/L GB11901-89
solids method
treatment Discharge Standards
Dilution and
station for Meat Processing
discharge BOD5 Industry (GB 13457- 10mg/L inoculation HJ505-2009
outlet 92) method
Comprehensive Alkaline
Fenxi New Once per
Sewage Discharge potassium
Hope Liuhe month
Total Standards (GB8978- persulfate
Food Co., 2mg/L HJ 636-2012
nitrogen 1996) digestion UV
Ltd.
spectrophotometr
Manual y
Animal and monitoring Infrared
vegetable 20mg/L spectrophotometr HJ 637-2012
oil y
Coliform Multi-tube GB/T5750.12-
10000/L
groups fermentation 2006
Phosphate
Ringelman 1 times a Table 3 Gas Boiler Ringelman HJ/T 398-
1mg/Nm3
blackness year Standard of blackness chart 2007
Boiler Emission Standards Controlled
Nitrogen Once per
exhaust for Air Pollutants 50mg/Nm3 potential HJ693-2014
oxides month
treatment from Boilers (DB electrolysis
discharge 14/1929-2019) Determination of
outlet Particulate 1 times a Table 1 Level-2 particulate matter GB/T 16157-
Standard of Odor 5mg/Nm3
matter year in stationary 1996
Pollutant Discharge pollution source
131
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Standards emissions and
(GB14554-93) sampling method
Comprehensive for gaseous
Emission Standards pollutants
for Air Pollutants Controlled
Sulfide (GB16297-1996), 35mg/Nm3 potential HJ57-2017
dioxide
electrolysis
Odor 20
Triangle odor bag GB/T14675-
concentratio (dimensionles
method 93
n s)
Sodium
Ammonia hypochlorite-
(ammonia 1.5mg/Nm3 salicylic acid HJ534-2009
gas) spectrophotometr
Once per y
half a year Supplement of
Boundary
the Fourth
Edition of Air
Methylene blue
Hydrogen and Exhaust
0.06mg/Nm3 spectrophotometr
sulfide Gas
ic method
Monitoring
and Analysis
Methods
Particulate 1 times a
matter year
Feed plant
Particulate Once per 120mg/Nm3 Gravimetric GB/T15432-
discharge
matter half a year 3.5Kg/h method 1995
outlet
Boundary Ambient Boundary
Noise Emission Ambient Noise
Daytime
Once per Standards for 60dB(A) Emission GB12348-
Boundary Leq
quarter Industrial Standards for
Nighttime 2008
Enterprises(GB1234 50dB(A) Industrial
8-2008) Enterprises
Dichromate
COD 500mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
70mg/L HJ 668-2013
nitrogen hydrochloride
spectrophotometr
y
Nessler’s reagent
Ammonia
45mg/L spectrophotometr HJ535-2009
nitrogen
y
Water Pollutant Ammonium
Total Discharge Standards molybdate
Sewage 8mg/L HJ 671-2013
phosphorus for Meat Processing spectrophotometr
Linyi Liuhe treatment
Manual Once per Industry (GB 13457- y
Hongcheng station
monitoring half a year 92)
Farming discharge Glass electrode
pH Agreements with 6-8.5 GB 6920-1986
Co., Ltd. outlet method
sewage treatment
Suspended plants Gravimetric
300mg/L GB11901-89
solids method
Dilution and
BOD5 250mg/L inoculation HJ505-2009
method
Animal and Infrared
vegetable 50mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform fermentation and
10000 HJ637-2012
groups filtration
membrane
Boiler Nitrogen Manual Once per Emission Standards 200mg/Nm3 Non-dispersive HJ 692-2014
132
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
discharge oxides monitoring month for Air Pollutants infrared
outlet from Boilers (GB absorption
13271-2014), method
Emission Standards Non-dispersive
Sulfide for Air Pollutants infrared
from Boilers (DB37 50mg/Nm3 HJ 629-2011
dioxide absorption
1 times a 2374-2018) method
year Gravimetric HJ/T 398-
Dust 10mg/Nm3
method 2007
Ringelman Ringelman HJ/T 398-
1
blackness blackness chart 2007
Catering Industry
Odor
Fume Emission GB18483-
concentratio 20
Standards 2001
n
Odor Pollutant (Tentative)
Boundary Manual Once per
Ammonia Discharge Standards
odor monitoring half a year Ion selective GB/T 14669-
(ammonia (GB 14554-93), 1.5mg/Nm3
electrode method 1993
gas)
Hydrogen Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Air quality
Determination of
Odor
malodor Three- GB T 14675-
concentratio 20
point 1993
n
comparative bag
method
Air quality
Ammonia Determination of
Exhaust GB/T 14669-
(ammonia 1.5mg/Nm3 ammonia Ion
cylinder for 1993
gas) selective
sewage
electrode method
treatment
station Air quality
Determination of
hydrogen sulfide,
methyl
Hydrogen GB/T14678-
0.06mg/Nm3 mercaptan,
sulfide 1993
methyl sulfide
and dimethyl
disulfide Gas
Odor Pollutant chromatography
Manual Once per
Discharge Standards
detection half a year Air quality
(GB 14554-93)
Pingyi Liuhe Determination of
Odor
Fada Food malodor Three- GB T 14675-
concentratio 20
Co.,Ltd. point 1993
n
comparative bag
method
Air quality
Ammonia Determination of
Duck- GB/T 14669-
(ammonia 1.5mg/Nm3 ammonia Ion
hanging 1993
gas) selective
platform
electrode method
exhaust
cylinder Air quality
Determination of
hydrogen sulfide,
methyl
Hydrogen GB/T14678-
0.06mg/Nm3 mercaptan,
sulfide 1993
methyl sulfide
and dimethyl
disulfide Gas
chromatography
Coliform Part 2 of Multi-tube
10000/L GB 6920-1986
Main groups Comprehensive fermentation
Automatic Once per 6
sewage Discharge Standards Water quality
testing hours GB 11901-
outlet BOD5 for Water Pollutants 10mg/L Determination of
in Watersheds: Yi 1989
BOD5 Dilution
133
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and Shu River and inoculation
Watershed (DB37/ test
3416.2-2018), Water quality
Environmental Determination of
Quality Standards Ammonia
Ammonia for Surface Water nitrogen Flow
(GB3838-2002),/, 1.5mg/l HJ505-2009
nitrogen injection -
Water Pollutant salicylic acid
Discharge Standards spectrophotometr
for Meat Processing y
Industry (GB 13457- Water quality
92) Determination of
petroleum and
Animal and
animal and
vegetable 3mg/L HJ 828-2017
vegetable oils
oil
Infrared
spectrophotometr
y
Water quality
Determination of
COD 30mg/L COD HJ 668-2013
Dichromate
process
Water quality
Determination of
total nitrogen
Total Flow injection -
nitrogen (in 15mg/L naphthalene HJ 666-2013
N) ethylenediamine
hydrochloride
spectrophotometr
y
Water quality
Determination of
pH value pH6-9 HJ 671-2013
pH value Glass
electrode method
Water quality
Determination of
Suspended
20mg/L suspended solids HJ637-2018)
solids
Gravimetric
method
Water quality
Determination of
total phosphorus
Total
Flow injection - GB/T11893-
phosphorus 0.3mg/L
ammonium 1989
(in P)
molybdate
spectrophotometr
y
Air quality
Determination of
Odor
malodor Three- GB T 14675-
concentratio 20
point 1993
n
comparative bag
method
Air quality
Odor Pollutant
Ammonia Manual Once per Determination of
Boundary Discharge Standards GB/T 14669-
(ammonia detection month 1.5mg/Nm3 ammonia Ion
(GB 14554-93) 1993
gas) selective
electrode method
Air quality
Determination of
Hydrogen GB/T14678-
0.06mg/Nm3 hydrogen sulfide,
sulfide 1993
methyl
mercaptan,
134
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
methyl sulfide
and dimethyl
disulfide Gas
chromatography
Dichromate
COD 500mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
70mg/L HJ 668-2013
nitrogen hydrochloride
spectrophotometr
y
Online 4 times a
Nessler’s reagent
Ammonia monitoring day
45mg/L spectrophotometr HJ535-2009
nitrogen
y
Ammonium
Total molybdate
Outlet of Comprehensive 8.0mg/L HJ 671-2013
phosphorus spectrophotometr
sewage Discharge Standards y
treatment for Water Pollutants
Glass electrode
station pH (DB11/307-2013) 6.5-9 GB 6920-1986
method
Suspended Gravimetric
400mg/L GB11901-89
solids method
Beijing Dilution and
Kinghey BOD5 300mg/L inoculation HJ505-2009
Food Co., method
Ltd. Animal and Manual Once per Infrared
vegetable monitoring quarter 50mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform fermentation and
10000/L HJ637-2012
groups filtration
membrane
Outlet of Comprehensive
Non-
chemcial Emission Standards Gas
methane 50mg/Nm3 HJ/T 38-1999
production for Air Pollutants chromatography
hydrocarbon
outlet (DB11/501-2017)
Catering Industry
Fume Emission GB18483-
Fume Manual Once per 1mg/Nm3
Catering Industry Standards 2001
monitoring half a year (Tentative)
Fume Emission
Canteen
Particulate Standards Mannual
fume 5mg/Nm3 DB11/T1485
matter (Tentative) weighing method
Non- (GB18483-2001)
Gas
methane 10mg/Nm3 HJ/T 38-1999
chromatography
hydrocarbon
Dichromate
COD 500mg/L HJ 828-2017
process
Flow injection-
naphthalene
Total ethylenediamine
70mg/L HJ 668-2013
nitrogen hydrochloride
spectrophotometr
Hebei Online 4 times a
Outlet of Comprehensive y
Kinghey monitoring day
sewage Discharge Standards Nessler’s reagent
Meat Ammonia
treatment for Water Pollutants 45mg/L spectrophotometr HJ535-2009
Industry Co., nitrogen
station (DB11/307-2013) y
Ltd.
Ammonium
Total molybdate
8.0mg/L HJ 671-2013
phosphorus spectrophotometr
y
Glass electrode
pH Manual Once per 6.5-9 GB 6920-1986
method
monitoring quarter
Suspended 400mg/L Gravimetric GB11901-89
135
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
solids method
Spectrophotometr
Phosphate 1.0mg/L HJ 670-2013
y
Dilution and
BOD5 300mg/L inoculation HJ505-2009
method
Animal and Infrared
vegetable 50mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform fermentation and
10000/L HJ637-2012
groups filtration
membrane
Air Odor
Triangle odor bag GB/T14675-
flotation concentratio 2000
method 1993
tank n
exhaust Ammonia
cylinder, Ion selective GB/T 14669-
(ammonia 4.9kg/h
desilting electrode method 1993
gas)
room
exhaust
cylinder,
Odor Pollutant
grille
Discharge Standards
exhaust
(GB 14554-93)
cylinder,
waiting Hydrogen Gas GB/T14678-
pends 0.33kg/h
sulfide chromatography 1993
exhaust
cylinder,
harmless
treatment
discharge
outlet
Fast digestion
COD 300mg/L spectrophotometr HJ/T399-2007
y
Flow injection-
naphthalene
Total ethylenediamine
50mg/L HJ 668-2013
nitrogen hydrochloride
4 times a spectrophotometr
Online day y
monitoring Nessler’s reagent
Ammonia
30mg/L spectrophotometr HJ535-2009
nitrogen Comprehensive y
Sewage Discharge Ammonium
Total Standards (DB molybdate
Outlet of 5mg/L HJ 671-2013
phosphorus 21/1627-2008) spectrophotometr
Liaoning sewage
Water Pollutant y
Kinghey treatment
Discharge Standards
Food Co., station Glass electrode
pH for Meat Processing 6.0-8.5 GB 6920-1986
Ltd. method
Industry (GB 13457-
Suspended 92) Gravimetric
300mg/L GB11901-89
solids method
Dilution and
BOD5 250mg/L inoculation HJ505-2009
Once per method
Animal and Manual quarter Infrared
vegetable monitoring 60mg/L spectrophotometr HJ 637-2012
oil y
Multi-tube
Coliform fermentation and
10000 HJ637-2012
groups filtration
membrane
Boundary Odor Manual Once per Odor Pollutant 20 Triangle odor bag GB/T14675-
odor concentratio monitoring half a year Discharge Standards (dimensionles method 1993
136
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
n (GB 14554-93), s)
Ammonia Comprehensive
Emission Standards Ion selective GB/T 14669-
(ammonia 1.5mg/Nm3
for Air Pollutants electrode method 1993
gas)
Hydrogen (GB16297-1996), Gas GB/T14678-
0.06mg/Nm3
sulfide chromatography 1993
Dichromate
COD 500mg/L HJ 828-2017
process
Nessler’s reagent
Ammonia
45mg/L spectrophotometr HJ 535-2009
nitrogen
y
Glass electrode
pH 6.0-8.5 GB 6920-86
method
Ammonium
Total All molybdate
indicators 8mg/L GB 11893-89
phosphorus spectrophotometr
need to be y
monitored
Suspended Gravimetric
manually, 400mg/L GB 11901-89
solids Water Quality method
including Manual
Standards for Dilution and
online monitoring:
BOD5 Sewage Discharged 300mg/L inoculation HJ 505-2009
monitoring once per
into Urban Sewers method
of half a
Wastewater Animal and (GB/T 31962-2015)
chemical year Onlin Infrared
outlet vegetable Water Pollutant 60mg/L HJ637-2018
oxygen e photometry
oil Discharge Standards
demand, monitoring:
for Meat Processing Water and
ammonia once per
Industry (GB 13457- Wastewater
nitrogen, two hours
92)
total Monitoring
phosphoru and Analysis
Coliform Multi-tube
s, total _ Methods
groups fermentation
nitrogen (Fourth
and pH Edition)
(Supplementar
Chengdu y Edition)
Hope Food
Co., Ltd. Alkaline
potassium
Total persulfate
70mg/L HJ636-2012
nitrogen digestion UV
spectrophotometr
y
Controlled
Nitrogen Once per
150mg/Nm3 potential HJ 693-2014
oxides month
electrolysis
Emission Standards Controlled
Boiler Sulfide
Manual for Air Pollutants 50mg/Nm3 potential HJ 57-2017
exhaust dioxide
monitoring from Boilers (GB electrolysis
outlet 1 times a
Particulate 13271-2014) Gravimetric
year 20mg/Nm3 HJ 836-2017
matter method
Ringelman Ringelman
Level 1 HJ/T398-2007
blackness blackness chart
Ammonia Nessler’s reagent
(ammonia 1.5mg/Nm3 spectrophotometr HJ533-2009
gas) y
Fourth Edition
of Air and
Odor Pollutant Methylene blue
Fugitive Hydrogen Manual 2 times a Exhaust Gas
Discharge Standards 0.06mg/Nm3 spectrophotometr
emission sulfide monitoring year Monitoring
(GB14554-93) ic method
and Analysis
Methods
Odor
Triangle odor bag GB/T14675-
concentratio 20mg/Nm3
method 1993
n
Zhejiang Sewage Suspended Manual Once per Pollutant Discharge Water quality GB 11901-
160mg/L
Xindongwan treatment solids monitoring month Standards for Determination of 1989
137
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Agricultural station Livestock and suspended solids
Developmen discharge Poultry Breeding Gravimetric
t Co., Ltd. outlet Industry (DB33/593- method
2005) GB 11901-1989
Agreements with Water quality
sewage treatment Determination of
Manual Once per plants BOD5 Dilution
BOD5 140mg/L HJ 505-2009
monitoring month and inoculation
method
HJ 505-2009
Water quality
Determination of
Automatic Automatic COD
COD 380mg/L HJ 828-2017
monitoring monitoring Dichromate
process
HJ 828-2017
Water quality
Determination of
ammonia
Ammonia Automatic Automatic nitrogen
70mg/L HJ 535-2009
nitrogen monitoring monitoring Nessler’s reagent
spectrophotometr
y
HJ 535-2009
Water quality
Determination of
total phosphorus
Flow injection -
Total Automatic Automatic
7mg/L ammonium HJ 671-2013
phosphorus monitoring monitoring
molybdate
spectrophotometr
y
HJ 671-2013
Precipitation
Manual Once per
Ascaris ova 2/L collection method HJ775-2015
monitoring half a year
(HJ775-2015)
Water quality
Determination of
total coliforms,
fecal coliforms
Fecal Manual Once per
10000/L and escherichia HJ 1001-2018
coliforms monitoring half a year
coli Enzyme
substrate
technique (HJ
1001-2018)
Pollutant Discharge Water quality
Standards for Determination of
Uncontrolle Odor 60
Manual 1 times a Livestock and odor Triangle GB T 14675-
d emission concentratio (dimensionles
monitoring year Poultry Breeding odor bag method 1993
of exhaust n s)
Industry (DB33/593- (GB T 14675-
2005) 1993)
Water quality
Determination of
Suspended Manual Once per suspended solids GB 11901-
Pollutant Discharge 160mg/L
solids monitoring month Gravimetric 1989
Standards for method
Sewage Livestock and GB 11901-1989
Hangzhou
treatment Poultry Breeding
Guanglv Water quality
station Industry (DB33/593-
Breeding Determination of
discharge 2005)
Co., Ltd. Manual Once per BOD5 Dilution
outlet BOD5 Agreements with 140mg/L HJ 505-2009
monitoring month and inoculation
sewage treatment
method
plants
HJ 505-2009
Automatic Automatic Water quality
COD 380mg/L HJ 828-2017
monitoring monitoring Determination of
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COD
Dichromate
process
HJ 828-2017
Water quality
Determination of
ammonia
Ammonia Automatic Automatic nitrogen
70mg/L HJ 535-2009
nitrogen monitoring monitoring Nessler’s reagent
spectrophotometr
y
HJ 535-2009
Water quality
Determination of
total phosphorus
Flow injection -
Total Manual Once per
7mg/L ammonium HJ 671-2013
phosphorus monitoring quarter
molybdate
spectrophotometr
y
HJ 671-2013
Precipitation
Manual Once per
Ascaris ova 2/L collection method HJ775-2015
monitoring half a year
(HJ775-2015)
Water quality
Determination of
total coliforms,
fecal coliforms
Fecal Manual Once per
10000/L and escherichia HJ 1001-2018
coliforms monitoring half a year
coli Enzyme
substrate
technique (HJ
1001-2018)
Pollutant Discharge Water quality
Standards for Determination of
Uncontrolle Odor 60
Manual 1 times a Livestock and odor Triangle GB T 14675-
d emission concentratio (dimensionles
monitoring year Poultry Breeding odor bag method 1993
of exhaust n s)
Industry (DB33/593- (GB T 14675-
2005) 1993)
Water quality
Determination of
Suspended Manual Once per suspended solids GB 11901-
160mg/L
solids monitoring month Gravimetric 1989
method
GB 11901-1989
Water quality
Determination of
Manual Once per BOD5 Dilution
BOD5 Pollutant Discharge 140mg/L HJ 505-2009
monitoring month and inoculation
Standards for
method
Sewage Livestock and
Rui'an New HJ 505-2009
treatment Poultry Breeding
Hope Liuhe Water quality
station Industry (DB33/593-
Farming Determination of
discharge 2005)
Co., Ltd. Automatic Automatic COD
outlet COD Agreements with 380mg/L HJ 828-2017
monitoring monitoring Dichromate
sewage treatment
plants process
HJ 828-2017
Water quality
Determination of
ammonia
Ammonia Automatic Automatic nitrogen
70mg/L HJ 535-2009
nitrogen monitoring monitoring Nessler’s reagent
spectrophotometr
y
HJ 535-2009
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Water quality
Determination of
total phosphorus
Flow injection -
Total Manual Once per
7mg/L ammonium HJ 671-2013
phosphorus monitoring quarter
molybdate
spectrophotometr
y
HJ 671-2013
Precipitation
Manual Once per
Ascaris ova 2/L collection method HJ775-2015
monitoring half a year
(HJ775-2015)
Water quality
Determination of
total coliforms,
fecal coliforms
Fecal Manual Once per
10000/L and escherichia HJ 1001-2018
coliforms monitoring half a year
coli Enzyme
substrate
technique (HJ
1001-2018)
Pollutant Discharge Water quality
Standards for Determination of
Uncontrolle Odor 60
Manual 1 times a Livestock and odor Triangle GB T 14675-
d emission concentratio (dimensionles
monitoring year Poultry Breeding odor bag method 1993
of exhaust n s)
Industry (DB33/593- (GB T 14675-
2005) 1993)
Water quality
Determination of
Suspended Manual Once per suspended solids GB 11901-
160mg/L
solids monitoring month Gravimetric 1989
method
GB 11901-1989
Water quality
Determination of
Manual Once per BOD5 Dilution
BOD5 140mg/L HJ 505-2009
monitoring month and inoculation
method
HJ 505-2009
Water quality
Determination of
Automatic Automatic COD
COD 380mg/L HJ 828-2017
monitoring monitoring Pollutant Discharge Dichromate
Standards for
process
Sewage Livestock and
Ningbo New HJ 828-2017
treatment Poultry Breeding
Hope Liuhe Water quality
station Industry (DB33/593-
Farming Determination of
discharge 2005)
Co., Ltd. ammonia
outlet Agreements with
Ammonia Automatic Automatic nitrogen
sewage treatment 70mg/L HJ 535-2009
nitrogen monitoring monitoring plants Nessler’s reagent
spectrophotometr
y
HJ 535-2009
Water quality
Determination of
total phosphorus
Flow injection -
Total Manual Once per
7mg/L ammonium HJ 671-2013
phosphorus monitoring quarter
molybdate
spectrophotometr
y
HJ 671-2013
Precipitation
Manual Once per
Ascaris ova 2/L collection method HJ775-2015
monitoring half a year
(HJ775-2015)
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Water quality
Determination of
total coliforms,
fecal coliforms
Fecal Manual Once per
10000/L and escherichia HJ 1001-2018
coliforms monitoring half a year
coli Enzyme
substrate
technique (HJ
1001-2018)
Pollutant Discharge Water quality
Standards for Determination of
Uncontrolle Odor 60
Manual 1 times a Livestock and odor Triangle GB T 14675-
d emission concentratio (dimensionles
monitoring year Poultry Breeding odor bag method 1993
of exhaust n s)
Industry (DB33/593- (GB T 14675-
2005) 1993)
Administrative penalties imposed due to environmental issues within the reporting period
Effects on
business
operations
Name of company Results of Corrective measures
Reasons for penalty Violation of the
or subsidiary penalty taken
listed
company
On December 28, 2021, we received the
test report. According to the report
1. Quickly carried
(Report No.: S.H.(J)Zi 2021 No.1202-
out equipment
01), the monitoring result of total
maintenance and
Shen County New nitrogen in the wastewater you
Malfunction debug to meet the
Hope Liuhe discharged was 25.8 mg/L, 0.29 times 482,500
ed None standards.
Qingsizhai Food higher than the TN discharge limit Yuan
equipment 2. The penalty were
Co., Ltd. specified in the Comprehensive
borne by the
Discharge Standards for Water
ultimate responsible
Pollutants in Watersheds
party
(Part 4: Hai River Watershed
DB37/3416.42018)
1. There were environmental risks
Ineffective 1. Repaired soybean
associated with storing soybean oil in
risk oil storage tank;
Nantong New tanks;
regulation 35,000 2. Supplemented
Hope Feed Co., 2. There was no emergency plan for None
and Yuan emergency plans for
Ltd. environmental emergencies;
managemen environmental
3. Soybean oil leaked into the rainwater
t emergencies.
pipe network and the Chazhu River.
On April 2, 2022, after receiving the
1. Actively
notice from the Environmental
communicated with
Protection Bureau, went to the
the Environmental
Environmental Protection Bureau to sign Failure to
Protection Bureau;
Zhenjiang Jurong the penalty notice of "investment inspect in a 400,000
None 2. Quickly handled
Pig Farm without inspection". Zhenjiang timely Yuan
the environmental
Company was fined 350,000 Yuan and manner
assessment
the person in charge of the Company
acceptance
was fined 50,000 Yuan for "investing
procedure.
without inspection".
1. Quickly repaired
The rupture of the sewage pipe network Poor the pipe network;
Zhenjiang Jurong 21,000
caused the sewage to overflow into the emergency None 2. Actively
Pig Farm Yuan
off-site canals, causing local pollution. response communicated with
local environmental
141
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protection
departments.
1. Strengthened
routine odor
Villagers inspection;
were not 2. Used deodorant
Since the deodorization equipment failed
satisfied for emergency
Rui'an New Hope to meet the treatment requirement,
with odor 280,000 treatment;
Liuhe Farming villagers complained about odor, None
treatment Yuan 3. Consulted with
Co., Ltd. resulting in on-site enforcement by the
result, and the engineering
Environmental Protection Bureau
the site was department to
too close improve the
deodorization
equipment.
Due to the crystallization blockage of
the inlet and outlet pipeline of the
anaerobic tank in the sewage station and
the small water flow rate, the sewage
treatment capacity was low, about 260-
1. Quickly treated
310m per day. Due to the full liquid
ditch sewage;
level of the receiving pool, part of the
2. Rectified the
pretreated sewage passed directly
mixed flow of rain
through the inside ditch and mixed with
Liaocheng Xinhao and sewage;
the ditch water, and then pumped from
Farming Co., Ltd. Illegal 83,333 3. Strengthened
the east side to about 35mu of open None
Yanggu Breeding disposal Yuan routine disposal;
space on the east side of the Farm No. 2
Pig Farm 4. Stengthened
for disposal.
communication with
To reduce the pressure of sewage
environmental
treatment and minimize the water level
protection
of the oxidation pond and the treatment
department.
pressure of the sewage station before the
rainy season, the pretreated sewage was
pumped to the inside ditch, and then
transferred to the disposal site for
disposal.
1. Carried out spot
inspection and
maintenance;
Since sludge deposition caused by 2. Disposed the
malfunction of the relay pressurized tank overflow sewage;
Malfunction
Yincheng Xinhao grid machine and the mixer equipment, 650,000 3. Actively
ed None
Farming Co., Ltd. the water pump burnt out under high Yuan communicated with
equipment
load, with overflow sewage flowing into the environmental
Wanjiawan fish pond, causing pollution protection
department to deal
with environmental
protection issues.
1. Trained relevant
employees on
During the manuring process of the farm
drainage;
in Zhangfangtai Village, Wucangbao
2. Communicated
Town, Wuqi County, other manure plugs Unreasonabl
Wuqi Xinliu with the
in the farm suddenly collapsed, and a e 20,000
Technology Co., None environmental
large amount of manure water poured engineering Yuan
Ltd. protection
into the pipeline and flowed into the design
department and local
drain and then the river through the
government to deal
intermediate pool and observation well
with environmental
protection issues.
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On April 6, the law enforcement team of
the County Environmental Protection
Bureau came to the farm and put
forward rectification on the grounds that
the deodorant fan was not turned on,
there was foul smell next to the shredder, 1. Repaired the
and the emergency pool at the end of the deodorization
rain drain was too small. On April 18, equipment;
the head of Xiajiang County and the law 2. Actively
Malfunction
Xiajiang Xinliu enforcement team came to the farm, 90,000 communicated with
ed None
Farming Co., Ltd. checked the environmental protection Yuan the environmental
equipment
area, and pointed out that the odor next protection bureau
to the shredder was very strong. From and relevant
April 6 to April 18, the Company government
basically completed the rectification personnel
proposed by the environmental
protection bureau. The problem was that
during the two on-site inspections, the
motors of the two deodorizing fans were
burnt out by the rain
1. Consulted with
the engineering
Villagers department to
Since the design processing capacity of were not improve the
the deodorization equipment could not satisfied deodorization
Ningbo New Hope
meet the requirements, villagers with odor 250,000 equipment.
Liuhe Farming None
complained about the excessive odor, treatment Yuan 2. Coordinated to
Co., Ltd. Fenghua
resulting in on-site enforcement by the result, and actively
Environmental Protection Bureau the site was communicate with
too close government
agencies and calm
the public.
1. Quickly
completed the three
environmental
protection notices;
2. Repaired the
The leakage of the oxidation pond oxidation pond, with
caused the pollution of the downstream risk control during
Quzhou Yihai
reservoir. The Environmental Protection Civil the maintenance
Agriculture 380,000
Bureau required rectification after engineering None period;
Development Co., Yuan
inspection, and fined for 380,000 Yuan problems 3. Coordinated to
Ltd.
since the three environmental protection actively
notices had not been completed. communicate with
government
agencies and
environmental
protection bureaus,
etc.
1. Handled sick and
In the northeast side of the farm, about dead pigs previously
30 dead pigs were buried in shallow pits. hanled in violation
Hainan The dead pigs were not treated Illegal of regulations;
10,000
Changjiang harmlessly according to the regulations, handling of None 2. Actively
Yuan
Breeding Co., Ltd. resulting in decay and odor gas, which dead pigs communicated with
caused pollution to the surrounding government
environment. agencies including
environmental
143
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protection
department;
3. Circulated and
applied the Solid
Waste Management
System internally to
improve the risk
awareness of
frontline employees.
1. Contacted the
manufacturer for
debugging;
2. Actively
communicated with
government
On May 20, the Environmental
agencies including
Protection Bureau checked the water
Quzhou Yihai environmental
quality test samples. On May 24, it was Malfunction
Agriculture 13,000 protection
found that the water quality results ed None
Development Co., Yuan department;
exceeded the Farmland Irrigation Water equipment
Ltd. 3. After reaching the
Standards, and the Environmental
standard,
Protection Bureau ordered rectification.
strengthened routine
operation
management to
ensure that the
effluent quality
meets the standard.
1. Contacted the
manufacturer for
debugging;
2. Actively
communicated with
government
Hainan Xinliu agencies including
Due to failure in debugging the
Agricultural environmental
equipment in time to meet the standards, Malfunction
Reclamation 30,000 protection
the livestock and poultry breeding ed None
Farming Yuan department;
wastes were directly discharged into the equipment
Technology Co., 3. After reaching the
environment without treatment.
Ltd.-Hongming standard,
strengthened routine
operation
management to
ensure that the
effluent quality
meets the standard.
1. Consulted with
the engineering
department to repair
The settlement of sewer network led to
Civil the sewer network;
Hainan Lingao the overflow of sewage to the pits 195,000
engineering None 2. Strengthened the
Xinliu without anti-seepage measures, causing Yuan
problems environmental
environmental pollution
protection awareness
training of on-site
personnel
Beijing New Hope Tongzhou Environmental Protection 1. Circulated and
Ledger not
Farming Bureau found through inspection that we 50,000 applied the
recorded as None
Technology Co., were hazardous waste generating unit Yuan Hazardous Waste
required
Ltd. and had not kept the disposal records for Management
144
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
five years as required, although a System, and set up a
hazardous waste disposal ledger was hazardous waste
kept. treatment ledger
according to the
standard;
2. Strengthened
communication with
environmental
protection
department and
applied national and
local environmental
protection policies.
Linyi Ecology and Environmental 1. Strengthened the
Protection Bureau Hedong Branch found disposal of volatile
through on-site inspection that our organic compounds;
Linyi Liuhe Malfunction
factory didn’t use pollution prevention 72,500 2. Strengthened
Compound Feed ed None
and control facilities in accordance with Yuan communication with
Co., Ltd. equipment
regulations for volatile organic environmental
compounds generating production protection
process. department.
Other environmental information required to be disclosed
The Company Pollutant Discharge Permit No. Issuing date Expiry date
Linyi Liuhe Food Co., Ltd. 91371424690608012M001Y Dec. 9, 2018 Dec. 31, 2021
Qiu County Liuhe KangYuan Food Co., Ltd. 91130430598257627Y001V Mar. 4, 2019 Mar. 3, 2022
Lanling New Hope Liuhe Hongjun Food Co., Ltd. 91371324074412809A001Z Dec. 31, 2018 Dec. 30, 2021
Pingyi Refrigeration Factory of Shandong New
91371326730643307N001X Dec. 31, 2018 Dec. 30, 2021
Hope Liuhe Group Co., Ltd.
Qingdao Tianrun Food Co., Ltd. 9137028373726158XG001R Nov. 29, 2018 Nov. 28, 2021
Xiaoyi New Hope Liuhe Food Co., Ltd. 911411815684736446001P Nov. 5, 2018 Nov. 4, 2021
Yishui New Hope Liuhe Food Co., Ltd. 91371323676832608P001Q Dec. 31, 2018 Dec. 30, 2021
Guantao Liuhe Food Co., Ltd. 911304338720976263001W April 29, 2019 April 28, 2022
Binzhou Liuhe Longda Farming Co., Ltd. 91371600780754056D001X Dec. 15, 2018 Dec. 14, 2021
Wudi Liuhe Xinyang Food Co., Ltd. 913716237892643444001W Jan. 1, 2019 Dec. 31, 2021
Zouping Liuhe Livestock Co., Ltd. 9137162672075787X3001Y Dec. 17, 2018 Dec. 16, 2021
Shan County Liuhe Feed Co., Ltd. Food Branch 91371722054960365G001W Jan. 1, 2019 Dec. 31, 2021
Cao County Liuhe Food Co., Ltd. 91371721668055386B001Y Jan. 1, 2019 Dec. 31, 2021
Jiaxiang New Hope Liuhe Food Co., Ltd. 91370829MA3C7NQJ53001V Dec. 11, 2018 Dec. 10, 2021
Yuncheng Liuhe Food Co., Ltd. 913717257939188497001R Jan. 1, 2019 Dec. 31, 2021
Anshan Liuhe Food Co., Ltd. 91210321664575659M001R Dec. 14, 2018 Dec. 13, 2021
Panjin Liuhe Farming Co., Ltd. 91211121696196493W001R Dec. 22, 2018 Dec. 21, 2021
Dong’e Liuhe Lvjia Food Co., Ltd. 91371524554382151H001Y Dec. 4, 2018 Dec. 3, 2021
Liaocheng Liuhe Rongda Farming Co., Ltd. 913715267986527441001Q Dec. 13, 2018 Dec. 12, 2021
Shen County New Hope Liuhe Qingsizhai Food
91371522081794657Y001X Dec. 14, 2018 Dec. 13, 2021
Co., Ltd.
Yanggu Liuhe Luxin Food Co., Ltd. 91371521684826830M001Q Dec. 3, 2018 Dec. 2, 2021
Weifang Tianhui Food Co., Ltd. 913707837961923691001R Jan. 1, 2019 Dec. 31, 2021
Weifang HeshengYuan Food Co., Ltd. 91370784771026284D001X Jan. 1, 2019 Dec. 31, 2021
Luoyang Liuhe Huiquan Food Co., Ltd. 914103816794610724001P Sept. 30, 2018 Sept. 29, 2021
Hebi Liuhe Zhizhen Food Co., Ltd. 91410621MA3X68M315001Y Nov. 28, 2018 Nov. 27, 2021
Laiwu New Hope Liuhe Food Co., Ltd. 91371202082953517U001Q Dec. 24, 2018 Dec. 23, 2021
Dezhou Liuhe Zhikang Food Co., Ltd. 91371421673188095B001W Jan. 1, 2019 Dec. 31, 2021
Fei County Liuhe Huahai Food Co., Ltd. 913713255903361016001Y Dec. 31, 2018 Dec. 30, 2021
Fuxin Liuhe Farming Co., Ltd. Food Branch 91210900749795052A001V Dec. 12, 2018 Dec. 11, 2021
Taiqian New Hope Liuhe Luxin Food Co., Ltd. 91410927MA483TF88Y001V May 27, 2020 May 26, 2023
Laoting Liuhe Xinmeizi Food Co., Ltd. 91130225590963076Q001Z Dec. 11, 2018 Dec. 10, 2021
Qixia Refrigeration Factory of Shandong New 91370686731690885C001Z Mar. 6, 2019 Mar. 5, 2022
145
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Hope Liuhe Group Co., Ltd.
Laiyang Tianye Food Co., Ltd. 913706826705109232001Y Jan. 1, 2019 Dec. 31, 2021
Tai'an Taishan Liuhe Food Co., Ltd. 9137090066443838XT001U Aug. 15, 2019 Aug. 14, 2022
Shandong New Hope Liuhe Group Co., Ltd. Linyi
913713127232785168001Q April 30, 2019 April 29, 2022
Branch
Qingdao Liuhe Wanfu Food Co., Ltd. 91370285697168937U001W Dec. 7, 2018 Dec. 6, 2021
Fenxi New Hope Liuhe Food Co., Ltd. 911410346966540364 June 15, 2019 June 14, 2022
Beijing Kinghey Food Co., Ltd. 91110000741567725K001Z Dec. 21, 2018 Dec. 20, 2021
Hebei Kinghey Meat Industry Co., Ltd. 91130581776166315U001Z Dec. 14, 2018 Dec. 13, 2021
Liaoning Kinghey Food Co., Ltd. 91210113784575311A001Y Dec. 20, 2018 Dec. 19, 2021
Chengdu Hope Food Co., Ltd. 91510132621702689Y001P Oct. 18, 2018 Oct. 17, 2021
Zhejiang Xindongwan Agricultural Development
91330100563025041U May 25, 2020 May 24, 2023
Co., Ltd.
Hangzhou Guanglv Breeding Co., Ltd. 91330100673956664C May 25, 2020 May 24, 2023
Rui'an New Hope Liuhe Farming Co., Ltd. Pending
Zhejiang Yihai Agricultural Development Co. Ltd. 91330803MA29U3RA4T001X June 28, 2020 June 27, 2025
Ningbo New Hope Liuhe Farming Co., Ltd. Pending
Measures taken to reduce carbon emissions and effects during the reporting period
applicable □not applicable
The Company actively implemented the national carbon peaking and neutrality strategy and actively participated in the
international VCS program (VCS program is the world’s most widely used voluntary greenhouse gas program). A number of
photovoltaic projects have been built, mainly in the form of contract energy or renting roofs to cooperate with external investors.
In 2022, the scale of photovoltaic construction will be increased. At present, the photovoltaic installation area is 94,000 s quare
meters, and the annual power generation in the first half of 2022 was about 3.45 million kWh, saving about 1,089 tons of coal and
reducing carbon dioxide emissions by over 2,000 tons.
Other information related to environmental protection
None
II. Social Responsibilities
1. Implementation direction of social responsibility strategy
The Company adhered to the social responsibility management vision of "rooting in the society, repaying the society, and
becoming a reliable force", and carried out social responsibility activities focusing on the six major social responsibility strategy
implementation directions, namely “adhering to long-term doctrine in terms of corporate governance; protecting life with life as a
people's livelihood responsible enterprise; exploring smart urban and rural areas with innovative technology; breeding beauty with
hope to serve the society; feeding nature with circular agriculture in green industry; and pursuing excellence with growth to help
employees”.
In order to better consolidate and expand the achievements of poverty alleviation and participate in the cause of rural
revitalization, the Company actively carried out the “five-five project” of rural revitalization, powering rural revitalization through
the five projects, i.e. rural industry revitalization project, rural employment project, rural green collar training project, rural small
and micro assistance project, and rural model demonstration project.
The Company launched the "grain saving special action", planning to increase the comprehensive use efficiency of feed by 1%
every year, that is, to save 1% of grain every year. For five consecutive years, the accumulated grain saving will be about 1.5
million tons, which corresponds to saving more than 3 million mu of arable land.
2. Summary of social responsibility fulfillment
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Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
(1) Focus on building online and offline training platforms to carry out green-collar training. In the training practice, the
Company established the “5+N” training system, offering “village chief class”rural revitalization to cu ltivate rural development
leaders, modern apprenticeship system to cultivate young agricultural technical talents, modern breeding technology training
combined with production practice, green-collar public welfare lecture for online training of green-collar talents and other high-
quality training projects according to farmers' needs and regional characteristics.
The Company conducted green-collar public training offline and online, and held the “National Farmer's Mobile Application
Skills for Corporates” training in response to the current mobile Internet development trend and farmers' needs. The Company also
carried out public welfare training in assisting Xinjiang to send education to the countryside in cooperation with China Char ity
Federation, and completed 16 courses on poultry and ruminant breeding techniques. In the first half of 2022, a total of 86 offline
training sessions were carried out for 2,808 people; and 106,200 people received online training.
(2) Focus on improving the level of guarantee services to help small and micro financing in rural areas. Relying on its
subsidiary Puhui Agriculture and Animal Husbandry Financing Guarantee Co., Ltd. (Puhui Guarantee), the Company provided
financing guarantee services to solve financial problems for farmers and small, medium and micro enterprises. By taking
advantage of the Company's advantages in the agricultural, animal husbandry and food industry chain that integrates feed,
seedlings, slaughtering and refrigeration, veterinary drug supply and technica l services, Puhui Guarantee established a “all-in-one”
core operation model and a strict and prudent risk control system to connect multi-party resources such as financial services,
insurance and related enterprises, and formed business advantages such as the flow of funds within the industrial chain and the
ability to gather industrial chain resources to provide system services.
The Company focused on improving customer service capabilities. At present, Puhui Guarantee has developed 25 cooperative
banks, including 12 online channels, with a total credit line of 12.7 billion Yuan, providing customers with multiple choices of
funding channels. Puhui Guarantee has been approved to access the central bank's second-generation credit information system,
which can realize the exchange and sharing of customer credit information dat, curb the occurrence of default risks, and make it
easier for rural farmers with good credit records to handle guarantee business. In terms of digital operation, the self-developed
guarantee business system has been put into operation, which has promoted product standardization and online business process,
improved lending efficiency and improved customer experience. In the first half of 2022,it served more than 6,900 customers a nd
helped customers raise 3.4 billion Yuan.
(3) Focus on the construction of anti-epidemic and supply guarantee capacity to carry out public welfare and charity activities.
The Company actively participated in public welfare and charity activities, and acted as a livelihood responsible enterprise trusted
by the public. During the epidemic in Xi'an in January, New Hope Liuhe Shaanxi Operating Region Yangling Besun Group
donated 13,200 boxes of “Besun High-end Cold Fresh Meat” to “Shaanxi Charity Association”, with a total value of 500,000 Yuan.
After the outbreak of COVID-19 in Shanghai, the Company established an epidemic prevention task force, with full production
capacity and 24-hour shifts, and key employees entered Shanghai retrogradely to support the construction of the front warehouse.
In April, a total of 16,000 tons of meat products were supplied to Shanghai. The Company promoted the normalization and
serialization of charitable activities, and held the Seventh “Wish P lan”, which fulfilled the “June 1”wishes of 2,491 children in 44
schools across the country.
In the first half of 2022, relying on subsidiaries across the country, the Company extensively carried out various public
welfare and charity activities such as rural revitalization, poverty alleviation pro ject consolidation, education assistance, support
for the military and family members, and care for the elderly, with a total donation of RMB 6,643,690.80.
(4) Focus on the construction of “integration of industry and data” to launch digital transformation. The Company launched
the digital transformation and lighthouse project, and proposed the goal of “integration of industry and digital management”, to
promote the close integration of business and digital technology, establish a closed-loop system for efficient operation, and
achieve intelligent key equipment, full-scene business data, full-data online functioning and full-process management automation,
covering 6 scenarios including R&D, breeding, production, supply chain, sales, and customer service, providing intelligent
solutions for operations in terms of efficiency and cost.
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HongtongNHF formula system independently developed by the Company has been officially launched in all domestic
companies, covering 148 factories and four types of feeds in the feed industry, becoming the only domestic feed enterprise with its
own formula system and full coverage of factories, and laying the foundation for “all online nutritionists, all online recipe s, and all
online management”.
(5) Focus on the growth of key talents to build a digital learning system. Under the talent supply chain system, the Company
has established a front, middle and back office management talent training system. The front office focuses on key talent tra ining
and project delivery, the middle office focuses on the resource delivery of the two major platforms, the intelligent course sharing
platform and the digital learning platform, and the back office focuses on institutional systems and brand building. In the f irst half
of the year, projects such as Xinying365 Program, Smart Sharing Platform, and Digital Learning Platform were carried out.
Xinying365 Program: focusing on the three major abilities of communication and coordination, task promotion, and learning
and development, it designed improve ment plans, developed and implemented independent courses for new employees in 2021, so
as to significantly improve the three abilities, meet the general competence requirements, and enhance the soft power of the
workplace.
Elite Program: through the online + offline learning model, it helped middle-level backbones complete the positioning change,
and reconstruct management capabilities focusing on the five key competencies, i.e. role changing, target setting, team leadi ng,
performance achieving, and development promoting.
EagleProgram: the online training camp was for middle-level managements, consisting of four main modules, i.e. financia l
management, market insight and analysis, personnel and team management, and digital thinking for general managers. In the first
half of the year, a total of 435 general managers finished online learning on the digital platform, a total of about 2,500 hours. In
addition, 4 general manager talent classes were offered to help general managers improve their leadership skills and solve practical
challenges through online micro-course learning and offline training and practice.
EMBA program for agriculture and animal husbandry industry: adhering to the educational concept of openness, innovation
and pursuit of excellence, it is committed to becoming the EMBA education platform that understands the management practices
of China's agriculture and animal husbandry industry best, to train senior managers with systematic thinking, excellent leade rship
and innovative spirit for China's agriculture, animal husbandry and food industry. From January to June 2022, EMBA program
carried out a total of 6 course activities for 3 classes, and trained 133 senior managers in the agriculture and animal husba ndry
industry in terms of leadership training, human resource management, financial management, managerial economics, supply chain
and operation management, etc.,
Smart Sharing P latform: it is functioned for lecturer training and course development, and constantly iterates the interna l
trainer system according to business development to standardize the management of the Company's internal trainer team. In the
first half of the year, multiple sessions of internal lecturer training and certification were organized, training 90 interna l trainers
and offering 78 professional courses.
Digital Learning Platform: connecting with the daily office system, it embeds learning into work scenarios, promoting
employees to develop digital learning habits, establish personal learning files, and promoting the construction of learning
organizations.
“Glittering Sharer” and "Warrior Talk": as the online sharing IPs jointly created by multiple channels relying on the Digita l
Learning P latform, they are committed to stimulating the vitality of the organization and zero distance contact with living
characters, to set role models for each other and work together for the organization goals. They complement the Company's talent
development programs and training programs to create a three-dimensional learning organizational atmosphere.
In terms of technical skills training training, the Company offered online and offline special skill training focusing on the
production skills, aquatic skills, laboratory skills and feed technical service skills of the feed industry, and standa rdized and
solidified the production and testing activities of the pig industry and feed industry by SOP short videos.
3. Social appraisal
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The Company has been listed in the Forbes Global 2000 and Fortune China 500 for many consecutive years. In 2022, the
Company ranked 108th in the Fortune China 500 and 1271st in the Forbes Global 2000. In the first half of 2022, the Company
won a number of social responsibility honors, such as the Best Practice case of Rural Revitalization of listed companies and the
Southern Weekend’s China Corporate Social Responsibility List. It also won the first prize of Shennong Award for Scientific
Research Achievements, the first prize of Sichuan Science and Technology Progress Award and other scientific and technologica l
awards, and was selected into the list of national waterfowl core breeding farms, list of national waterfowl breeding and
propagation bases, list of national livestock and poultry seed industry formation enterprises and other lists.
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Section 6 Important Matters
1. Commitments fulfilled within the reporting period and not yet fulfilled beyond the time
limit as at the end of the reporting period by actual controller, shareholder, related party,
acquirer and corporate and other commitment-related parties of the Company
applicable □not applicable
Period
Time of Fulfi
Cause of Party Type of of
Content of commitment commitme llme
commitment concerned commitment commit
nt nt
ment
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 formerly non-tradable
shares may be listed for sale at a price of no
less than 6.8 Yuan only when the
Com
Company’s stock closing price exceeds 6.8
Share reform New Hope Share mitm
Yuan for any consecutive 5 trading days. Jan. 19,
commitments Group Co., reduction None ents
The prices of the aforesaid shares offered 2006
Ltd. commitments hono
for sale may be adjusted accordingly when
red
the Company implements profit
distribution, conversion of capital reserve to
share capital, additional issue of new
shares, shares allotment, conversion of
convertible bonds into shares or
shareholding reduction in the same ratio by
all shareholders.
Commitments
made in
acquisition Non
None None None None None
reports or e
equity change
reports
In order to preserve the legitimate rights
and interests of the Company after
significant asset reorganization, the
aforesaid shareholders undertake that the
Commitments covenanters currently are not directly or
New Hope
regarding indirectly engaged in any business activities
Group Co.,
horizontal that constitute horizontal competition with Com
Commitment Ltd.; South
competition, the business conducted by the listed mitm
made at the Hope Dec. 31,
related-party company; while the covenanters actually None ents
time of asset Industrial 2010
transactions control the listed company, the covenanters hono
reorganization Co. Ltd.;
and and other companies (except for listed red
Liu
occupation of companies) controlled by them will not
Yonghao
funds directly or indirectly 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
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Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
the listed company.
In order to reduce and regulate the possible
related-party transactions of the Company
after significant asset reorganization, 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
reason to exist and perform approval
Commitments
procedure according to the applicable laws,
regarding
New Hope regulations, rules and other normative
horizontal Com
Commitment Group Co., documents and the articles of association,
competition, mitm
made at the Ltd.; South whereby the prices of related-party Dec. 31,
related-party None ents
time of asset Hope transactions will be determined according 2010
transactions hono
reorganization Industrial to the prices when the same or similar
and red
Co. Ltd. transactions are conducted with
occupation of
independent third parties without related-
funds
party 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 shares controlled by New Hope Group
in the Company will further increase and
New Hope New Hope Group and South Hope
Com
Commitment Group Co., undertake as follows with respect to
mitm
made at the Ltd.; South Other ensuring the independence of the Company : Dec. 31,
None ents
time of asset Hope commitments 1. ensure the independence of assets of the 2010
hono
reorganization Industrial listed company; 2. ensure the financial
red
Co. Ltd. independence of the listed company; 3.
ensure 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.
Gao Commitments When holding shares/equities in the listed
Zhanhe; Yan regarding company and Yangling Besun:
Junfang; horizontal 1. We, our close family members (including Com
Commitment
Yan competition, spouse, parents, parents-in-law, siblings and mitm
made at the Dec. 28,
Suifang; related-party their spouses, children aged above 18 and None ents
time of asset 2016
Yangling transactions their spouses, siblings-in-law and parents- hono
reorganization
Fengyi and in-law, the same below) and companies red
Equity occupation of controlled (directly or indirectly) by us and
Investment funds our close family members have not and will
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Managemen not directly or indirectly engage in any
t Center activities that constitute horizontal
(LP); competition with the swine breeding, pig
Yangling farming, slaughtering, processing and feed
XiangYuan production businesses (hereinafter, “main
Equity business of the listed company”) that the
Investment listed company and its majority-owned
Managemen subsidiaries mainly conduct in any manner.
t Center 2. With respect to wholly-owned companies
(LP) and directly or indirectly majority-owned
companies controlled by us and our close
family members, we and our close family
members will cause such companies to
perform the same obligations in this letter
of commitments as ours through appointed
agencies and personnel (including but not
limited to directors and managers) and
exercise of the majority-owned status and
undertake not to incur horizontal
competition with the main business of the
listed company. 3. If we, any of our close
family members or companies over which
we or any of our 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 we will make
the utmost effort to give such business
opportunities to the listed company during
the reasonable period specified in the notice
if the listed company makes a positive reply
expressing its willingness to utilize such
business opportunities.
4. We 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, we will bear
the direct or indirect economic losses and
damages so caused to the listed company
and the costs and expenses in connection
therewith.
Gao During the period in which we hold
Zhanhe; Yan Commitments shares/equities in the listed company and
Junfang; regarding Yangling Besun and we or our affiliates are
Yan horizontal defined as related parties of the listed Com
Commitment
Suifang; competition, company and its majority-owned mitm
made at the Dec. 28,
Yangling related-party subsidiaries as specified by the securities None ents
time of asset 2016
Fengyi transactions regulatory rules: 1. with respect to the hono
reorganization
Equity and related-party transactions already existing red
Investment occupation of and unavoidable in the future between us
Managemen funds and companies controlled by us (if any) and
t Center the listed company and its majority-owned
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(LP); subsidiaries, we undertake to follow the
Yangling arm’s length principle of market
XiangYuan transaction, i.e., normal commercial terms,
Equity to make transactions with the listed
Investment company and its majority-owned
Managemen subsidiaries. If we failed to make any
t Center transactions with the listed company and its
(LP) majority-owned subsidiaries according to
the arm’s length principle of market
transaction, causing losses or having caused
losses to the listed company and its
majority-owned subsidiaries, we will be
liable for indemnification.
2. We will perform in good faith the
obligations as shareholders 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. We will cause directors of
the listed company nominated by us (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. We
and our 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 us and our affiliates.
4. If the listed company has to incur
unavoidable related-party transactions with
us or any of our affiliates in its future
business activities, we 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 we 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. We and our affiliates will strictly and in
good faith perform various related-party
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Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
transaction agreements signed with the
listed company. We and our affiliates will
not seek from the listed company any
interests or benefits beyond those set forth
in the aforesaid agreements.
New Hope
Com
Commitments Group Co., Commitments Subjects of issuance undertake not to
mitm
made at the Ltd., South regarding transfer any stocks privately placed this Oct. 29, Jul. 12,
ents
time of IPO or Hope restricted sale time within 18 months from the date of 2020 2022
hono
refinancing Industrial of shares closing of the offering.
red
Co., Ltd.
Equity
Non
incentive None None None None None
e
commitments
Other
commitments
made to Non
None None None None None
minority e
shareholders of
the Company
Other Non
None None None None None
commitments e
Whether the
commitments
Yes
were performed
on time
If commitments
were not
performed and
completed
within the time
limit, specify
Not applicable
the reasons for
the failure to
complete
performance
and the next
work plan
II. Occupation of non-operating funds of the listed company by controlling shareholders or
their related parties
□applicable not applicable
The Company had no occupation of non-operating funds of the listed company by controlling shareholders or 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.
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IV. Appointment and dismissal of accounting firm
Whether the semiannual financial report has been audited
□Yes No
The Company’s semiannual report is not audited.
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. Bankruptcy reorganization related matters
□applicable not applicable
No bankruptcy reorganization matters occurred in the Company during the reporting period.
VIII. Litigations
Major litigations and arbitrations
□applicable not applicable
The Company was not involved in major litigations or arbitrations during the reporting period.
Other litigations
applicable □not applicable
Basic Amount Whether Litigation Execution of
Litigation
information on involved forming (arbitration) litigation Date of Disclosure
(arbitration)
litigation (10,000 estimated trial result and (arbitration) disclosure index
progress
(arbitration) Yuan) liabilities impact judgments
Construction
contract
litigation
between Laibin
Laibin
Xinhao
Intermediate
Farming Co., Pending the Pending the first Aug. 08,
17,483 No Pending People's Court
Ltd. and China first trial trial 2022
(2022) G.13
Construction
M.C. No.30
Second
Engineering
Bureau Co.,
Ltd.
Construction Opened a Cangzhou
contract court Intermediate
Aug. 08,
litigation 10,478 No session on Pending trial Pending People's Court
2022
between Aug. 22, (2022) J.09
Huanghua 2022 M.C. No.244
155
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Xinhao
Technology
Co., Ltd. and
China
Construction
Second
Engineering
Bureau Co.,
Ltd.
IX. Penalties and rectifications
□applicable not applicable
X. Status of integrity of the Company and its controlling shareholders and actual controller
□applicable not applicable
XI. Significant related-party transactions
1. Related-party transactions related to daily operations
□applicable not applicable
The Company had no related-party transactions related to daily operations during the reporting period.
2. Related-party transactions arising from acquisition or sale of assets or equity
□applicable not applicable
The Company had no related-party transactions arising from acquisition or sale of assets or equity
3. Related-party transactions arising from joint external investment
□applicable not applicable
The Company had no related-party transactions arising from 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 dealings of non-operating financial claims and debts with related parties during the reporting period.
5. Dealings with finance companies affiliated with the Company
applicable □not applicable
Deposit business
Daily Beginning Current amount Ending
Related-party Range of
Related party maximum balance balance
relationship deposit Total current Total current
deposit limit (10,000 (10,000
156
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
(10,000 interest rate Yuan) deposited withdrawn Yuan)
Yuan) amount amount
(10,000 (10,000
Yuan) Yuan)
New Hope
0.35%- 52,678,604.0 53,168,452.2
Finance Co., Affiliate 1,000,000 952,499.72 462,651.48
4.07% 1 5
Ltd.
Loan business
Current amount
Beginning Total current Ending
Loan limit Range of Total current
Related-party balance repaid balance
Related party (10,000 loan interest loan amount
relationship (10,000 amount (10,000
Yuan) rate (10,000
Yuan) (10,000 Yuan)
Yuan)
Yuan)
New Hope
Finance Co., Affiliate 4,450 3.6%-4% 3,160 950 340 3,770
Ltd.
Credit or other financial business
Related-party Total amount (10,000 Actually incurred
Related party Business type
relationship Yuan) amount (10,000 Yuan)
New Hope Finance Other financial
Affiliate 430,984.4 278,494.79
Co., Ltd. business
6. Dealings between finance companies controlled by the Company and related parties
□applicable not applicable
There was no deposit, loan, credit or other financial business between finance companies controlled by the Company and related
parties.
7. Other significant related-party transactions
□applicable not applicable
The Company had no other significant related-party transactions during the reporting period.
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.
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(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)
Date of
Cou Wheth
Name of disclosure Wheth
Amount Coll nter er
guarante of related Type of Guarant er
Guaranteed Date actually actually atera guar related
e announcem guarante ee fully
amount incurred guarantee ls(if ante -party
benefici ent of e period perfor
d any) e (if guaran
ary guaranteed med
any) tee
amount
Guarantees provided by the Company for its subsidiaries
Date of
Cou Wheth
Name of disclosure Wheth
Amount Coll nter er
guarante of related Type of Guarant er
Guaranteed Date actually actually atera guar related
e announcem guarante ee fully
amount incurred guarantee ls(if ante -party
benefici ent of e period perfor
d any) e (if guaran
ary guaranteed med
any) tee
amount
Joint
Anyang
and
Xinliu
Apr. 29, several Non Non 2379
Technol 10,000 Jan. 21, 2021 9,650 No Yes
2020 liability e e days
ogy Co.,
guarante
Ltd.
e
Joint
Anyang
and
Xinliu
Apr. 29, several Non Non 2380
Technol 10,000 Jan. 20, 2021 9,650 No Yes
2020 liability e e days
ogy Co.,
guarante
Ltd.
e
Anyue Joint
New and
Hope Apr. 29, several Non Non 2191
15,250 May 19, 2021 3,890.48 No Yes
Liuhe 2020 liability e e days
Farming guarante
Co., Ltd. e
Baiyin
Joint
New
and
Hope
Apr. 29, several Non Non 1094
Farming 5,000 Aug. 31, 2020 4,250 No Yes
2020 liability e e days
Technol
guarante
ogy Co.,
e
Ltd.
Beijing Joint
Kinghey Apr. 29, and Non Non 1825
14,556.32 Jun. 12, 2020 4,712.71 No Yes
Food 2020 several e e days
Co., Ltd. liability
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guarante
e
Joint
Beijing and
Kinghey May 29, several Non Non 365
15,443.68 Apr. 27, 2022 5,000 No Yes
Food 2021 liability e e days
Co., Ltd. guarante
e
Beijing Joint
Xinliu and
Farming May 29, several Non Non 4017
5,277.67 Jun. 25, 2021 2,557.16 No Yes
Technol 2021 liability e e days
ogy Co., guarante
Ltd. e
Beijing Joint
Xinliu and
Farming Apr. 29, several Non Non 2908
42,722.33 Jun. 30, 2020 20,700 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Joint
Bijie and
Xinliu Apr. 29, several Non Non 3286
11,000 May 19, 2020 9,504 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Joint
Cao
and
County
Oct. 25, several Non Non 1817
Xinhao 25,000 Apr. 28, 2020 24,000.28 No Yes
2019 liability e e days
Farming
guarante
Co., Ltd.
e
Changle Joint
New and
Hope Apr. 29, several Non Non 1823
15,000 Feb. 28, 2021 3,032 No Yes
Liuhe 2020 liability e e days
Farming guarante
Co., Ltd. e
Joint
Changyi
and
Xinhao
Apr. 29, several Non Non 1096
Livestoc 10,000 Jun. 19, 2020 9,500 No Yes
2020 liability e e days
k Co.,
guarante
Ltd.
e
Joint
Chenzho
and
u
Oct. 25, several Non Non 3285
Xinhao 64,100 Apr. 15, 2020 36,225 No Yes
2019 liability e e days
Farming
guarante
Co., Ltd.
e
Joint
Dacheng
and
Xinhao
May 29, several Non Non 3223
Technol 6,800 Jul. 23, 2021 6,800 No Yes
2021 liability e e days
ogy Co.,
guarante
Ltd.
e
Shan Apr. 29, 17,000 Jan. 08, 2021 13,082.5 Joint Non Non 1814 No Yes
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County 2020 and e e days
Xinhao several
Farming liability
Co., Ltd. guarante
e
Dong’e
New Joint
Hope and
Liuhe Apr. 29, several Non Non 1825
16,800 May 22, 2020 15,200 No Yes
Swine 2020 liability e e days
Breedin guarante
g Co., e
Ltd.
Joint
Donghai
and
Xinhao
Apr. 29, several Non Non 1825
Modern 23,000 Aug. 18, 2020 14,000 No Yes
2020 liability e e days
Farming
guarante
Co., Ltd.
e
Dongyin Joint
g and
Xinhao Apr. 29, several Non Non 1818
24,000 Dec. 1, 2020 22,800 No Yes
Modern 2020 liability e e days
Farming guarante
Co., Ltd. e
Dongyin Joint
g and
Xinhao Apr. 29, several Non Non 1790
24,000 Dec. 29, 2020 22,800 No Yes
Modern 2020 liability e e days
Farming guarante
Co., Ltd. e
Fuping Joint
Xinliu and
Farming Apr. 29, several Non Non 3111
8,300 Nov. 12, 2020 7,600 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Joint
Fuxin and
Liuhe May 29, several Non Non 364
30,000 Mar. 28, 2022 10,000 No Yes
Farming 2021 liability e e days
Co., Ltd. guarante
e
Gansu Joint
New and
Hope Apr. 29, several Non Non 2547
28,750 Jun. 29, 2020 13,499.66 No Yes
Liuhe 2020 liability e e days
Farming guarante
Co., Ltd. e
Joint
Ganzhou and
Hope May 29, several Non Non 365
6,000 Jul. 12, 2021 1,000 No Yes
Feed 2021 liability e e days
Co., Ltd. guarante
e
Gaotang Apr. 29, Joint Non Non 1843
18,553.84 Aug. 13, 2020 6,162.39 No Yes
Xinhao 2020 and e e days
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Farming several
Co., Ltd. liability
guarante
e
Joint
Gaotang and
Xinhao Apr. 29, several Non Non 2190
24,446.16 Jul. 08, 2020 8,119.44 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Joint
Guanlin
and
g Xinmu
Apr. 29, several Non Non 3651
Breedin 20,000 Oct. 29, 2020 12,616 No Yes
2020 liability e e days
g Co.,
guarante
Ltd.
e
Joint
Guang’a
and
n
Apr. 29, several Non Non 3232
Xinhao 40,000 Apr. 23, 2021 23,896.4 No Yes
2020 liability e e days
Farming
guarante
Co., Ltd.
e
Guangd
Joint
ong
and
Jiahao
May 29, several Non Non 365
Agricult 50,000 Jan. 28, 2022 1,000 No Yes
2021 liability e e days
ural
guarante
Products
e
Co., Ltd.
Joint
Guangha
and
n
May 29, several Non Non 365
Guoxion 5,000 Jan. 10, 2022 1,000 No Yes
2021 liability e e days
g Feed
guarante
Co., Ltd.
e
Joint
GuangY
and
uan
Apr. 29, several Non Non 3651
Xinchi 24,000 Mar. 16, 2021 5,800 No Yes
2020 liability e e days
Farming
guarante
Co., Ltd.
e
GuangY
uan Joint
Xinhao and
Agricult Apr. 29, several Non Non 3650
45,750 Jun. 30, 2020 45,750 No Yes
ural 2020 liability e e days
Develop guarante
ment e
Co., Ltd.
Joint
Guangzh and
ou Liuhe May 29, several Non Non 362
30,000 May 27, 2022 5,000 No Yes
Feed 2021 liability e e days
Co., Ltd. guarante
e
Guigang Apr. 29, Joint Non Non 3588
25,900 Mar. 12, 2021 19,900 No Yes
Xinliu 2020 and e e days
161
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Farming several
Technol liability
ogy Co., guarante
Ltd. e
Guiyang
New Joint
Hope and
Agricult Jun. 01, several Non Non 362
8,000 Jun. 29, 2022 7,000 No Yes
ural 2022 liability e e days
Technol guarante
ogy Co., e
Ltd.
Hainan Joint
Chengm and
ai New Apr. 29, several Non Non 1094
10,000 Oct. 23, 2020 4,250 No Yes
Hope 2020 liability e e days
Farming guarante
Co., Ltd. e
Hainan Joint
Lingao and
Xinliu Oct. 25, several Non Non 2064
10,000 Mar. 27, 2020 6,500 No Yes
Breedin 2019 liability e e days
g Co., guarante
Ltd. e
Joint
Hebei
and
Kinghey
May 29, several Non Non 364
Meat 30,000 Jul. 30, 2021 15,000 No Yes
2021 liability e e days
Industry
guarante
Co., Ltd.
e
Hebei
Xinhao Joint
Fucheng and
Agricult Apr. 29, several Non Non 2922
26,500 Jun. 30, 2020 22,346 No Yes
ural 2020 liability e e days
Technol guarante
ogy Co., e
Ltd.
Joint
Hezhou and
Xinhao Oct. 25, several Non Non 3650
48,000 Apr. 15, 2020 31,500 No Yes
Farming 2019 liability e e days
Co., Ltd. guarante
e
Heishan Joint
Xinliu and
Farming Apr. 29, several Non Non 1091
15,000 Feb. 23, 2021 13,500 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Hengnan Joint
Muyun and
Eco- Apr. 29, several Non Non 3286
28,000 May 19, 2020 12,600 No Yes
agricultu 2020 liability e e days
re Co., guarante
Ltd. e
Hengshu May 29, 12,400 Jan. 20, 2022 12,160 Joint Non Non 2703 No Yes
162
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
i Jizhou 2021 and e e days
District several
Xinhao liability
Farming guarante
Co., Ltd. e
Joint
Hengyan
and
g
Apr. 29, several Non Non 1821
Xinhao 17,400 Nov. 2, 2020 8,186.35 No Yes
2020 liability e e days
Farming
guarante
Co., Ltd.
e
Hubei Joint
Tuanfen and
g New May 29, several Non Non 364
5,000 Aug. 26, 2021 1,000 No Yes
Hope 2021 liability e e days
Feed guarante
Co., Ltd. e
Joint
Hubei and
Xinhao Apr. 29, several Non Non 2905
58,362.83 Oct. 9, 2020 41,150 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Joint
Hubei and
Xinhao Apr. 29, several Non Non 2555
31,637.17 May 28, 2020 22,306.48 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Huangga
Joint
ng New
and
Hope
May 29, several Non Non 365
Feed 15,000 Aug. 25, 2021 1,000 No Yes
2021 liability e e days
Technol
guarante
ogy Co.,
e
Ltd.
Jiaxiang
New Joint
Hope and
Liuhe Apr. 29, several Non Non 1447
14,000 Jun. 24, 2020 8,400 No Yes
Swine 2020 liability e e days
Breedin guarante
g Co., e
Ltd.
Joint
Jiangme and
n Liuhe May 29, several Non Non 1089
10,000 Apr. 7, 2022 5,000 No Yes
Feed 2021 liability e e days
Co., Ltd. guarante
e
Joint
Jiangme and
n Liuhe Apr. 29, several Non Non 1095
20,000 Mar. 26, 2021 10,000 No Yes
Feed 2020 liability e e days
Co., Ltd. guarante
e
Jiangme May 29, 5,000 Aug. 10, 2021 3,800 Joint Non Non 1096 No Yes
163
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
n Xinliu 2021 and e e days
Farming several
Co., Ltd. liability
guarante
e
Jiangxi
Joint
New
and
Hope
Apr. 29, several Non Non 1631
Farming 23,700 May 10, 2021 18,987.5 No Yes
2020 liability e e days
Technol
guarante
ogy Co.,
e
Ltd.
Julu Joint
Xinliu and
Farming Apr. 29, several Non Non 1825
20,000 May 19, 2021 6,755 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Joint
Juye and
Xinhao Apr. 29, several Non Non 2539
26,000 Jul. 09, 2020 21,750 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Kangpin Joint
g and
Xinwan Apr. 29, several Non Non 1812
26,940.78 Feb. 18, 2021 23,333.25 No Yes
g 2020 liability e e days
Farming guarante
Co., Ltd. e
Kangpin Joint
g and
Xinwan Apr. 29, several Non Non 1094
2,309.22 Feb. 23, 2021 2,000 No Yes
g 2020 liability e e days
Farming guarante
Co., Ltd. e
Kunmin
Joint
g New
and
Hope
May 29, several Non Non 364
Animal 3,675 Aug. 31, 2021 1,000 No Yes
2021 liability e e days
Nutritio
guarante
us Food
e
Co., Ltd.
Kunmin
Joint
g New
and
Hope
May 29, several Non Non 359
Animal 25,725 Apr. 18, 2022 7,000 No Yes
2021 liability e e days
Nutritio
guarante
us Food
e
Co., Ltd.
Kunmin
Joint
g New
and
Hope
May 29, several Non Non 361
Agricult 6,666.67 Apr. 24, 2022 2,000 No Yes
2021 liability e e days
ural
guarante
Technol
e
ogy Co.,
164
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Ltd.
Kunmin
g New Joint
Hope and
Agricult May 29, several Non Non 365
3,333.33 Sept. 13, 2021 1,000 No Yes
ural 2021 liability e e days
Technol guarante
ogy Co., e
Ltd.
Joint
Laibin and
Xinhao Apr. 29, several Non Non 1826
30,000 Mar. 05, 2021 26,680 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Laiwu Joint
New and
Hope May 29, several Non Non 365
15,000 Mar. 2, 2022 1,000 No Yes
Liuhe 2021 liability e e days
Food guarante
Co., Ltd. e
Laixi Joint
New and
Hope Apr. 29, several Non Non 1758
8,851.67 Aug. 27, 2020 6,058.5 No Yes
Liuhe 2020 liability e e days
Farming guarante
Co., Ltd. e
Laixi Joint
New and
Hope Apr. 29, several Non Non 3572
20,647.88 Jun. 28, 2020 14,132.38 No Yes
Liuhe 2020 liability e e days
Farming guarante
Co., Ltd. e
Laixi Joint
New and
Hope May 29, several Non Non 1096
73,051.66 May 31, 2022 50,000 No Yes
Liuhe 2021 liability e e days
Farming guarante
Co., Ltd. e
Laixi Joint
New and
Hope Oct. 25, several Non Non 3644
11,360.31 Apr. 17, 2020 7,775.53 No Yes
Liuhe 2019 liability e e days
Farming guarante
Co., Ltd. e
Laixi Joint
New and
Hope Apr. 29, several Non Non 1826
16,688.48 Oct. 28, 2020 11,422.39 No Yes
Liuhe 2020 liability e e days
Farming guarante
Co., Ltd. e
Joint
Laiyang
and
Xinmu
Apr. 29, several Non Non 3104
Breedin 13,900 Nov. 18, 2020 13,600 No Yes
2020 liability e e days
g Co.,
guarante
Ltd.
e
165
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Joint
Laiyang
and
Xinhao
Apr. 29, several Non Non 1814
Livestoc 19,700 Apr. 30, 2020 18,200 No Yes
2020 liability e e days
k Co.,
guarante
Ltd.
e
Joint
Lezhi and
Xinmu Apr. 29, several Non Non 2912
27,000 Mar. 05, 2021 25,650 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Liquan Joint
New and
Hope Apr. 29, several Non Non 2243
30,000 Sept. 29, 2020 14,200 No Yes
Liuhe 2020 liability e e days
Farming guarante
Co., Ltd. e
Joint
Liaoning and
Kinghey May 29, several Non Non 364
5,000 Feb. 24, 2022 5,000 No Yes
Food 2021 liability e e days
Co., Ltd. guarante
e
Liaoning Joint
Xinwan and
g Oct. 25, several Non Non 3994
63,714.41 Mar. 27, 2020 56,142.16 No Yes
Technol 2019 liability e e days
ogy Co., guarante
Ltd. e
Liaoning Joint
Xinwan and
g Apr. 29, several Non Non 1090
33,535.59 Apr. 13, 2021 29,550 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Joint
Liaoche
and
ng
Oct. 25, several Non Non 1809
Xinhao 20,510 Dec. 12, 2019 12,031.95 No Yes
2019 liability e e days
Farming
guarante
Co., Ltd.
e
Joint
Linyi and
Liuhe May 29, several Non Non 365
2,000 Mar. 2, 2022 1,000 No Yes
Food 2021 liability e e days
Co., Ltd. guarante
e
Liuzhou Joint
Xinliu and
Farming Apr. 29, several Non Non 2905
18,000 Oct. 27, 2020 8,500 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Longhai Joint
Apr. 29, Non Non 1824
New 35,000 Dec. 23, 2020 12,250 and No Yes
2020 e e days
Hope several
166
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Liuhe liability
Farming guarante
Co., Ltd. e
Longhui Joint
New and
Hope Apr. 29, several Non Non 2882
12,100 Nov. 6, 2020 5,450 No Yes
Liuhe 2020 liability e e days
Farming guarante
Co., Ltd. e
Luding Joint
Xinyue and
Farming Apr. 29, several Non Non 2956
28,000 Apr. 02, 2021 4,400 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Joint
Meishan and
Xinmu Apr. 29, several Non Non 2917
26,000 Mar. 30, 2021 24,700 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Joint
Nanchon
and
g New
May 29, several Non Non 1095
Hope 2,909.09 Jan. 04, 2022 1,000 No Yes
2021 liability e e days
Feed
guarante
Co., Ltd.
e
Joint
Nanchon
and
g New
Apr. 29, several Non Non 1095
Hope 13,090.91 Mar. 29, 2021 4,500 No Yes
2020 liability e e days
Feed
guarante
Co., Ltd.
e
Joint
Nanjing and
Xinmu Apr. 29, several Non Non 1826
11,600 Sept. 22, 2020 8,028.57 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Nanjing Joint
Guoxion and
g May 29, several Non Non 365
10,000 Apr. 28, 2022 1,950 No Yes
Technol 2021 liability e e days
ogy Co., guarante
Ltd. e
Nanning Joint
Xinliu and
Farming Oct. 25, several Non Non 2920
20,000 Apr. 15, 2020 11,250 No Yes
Technol 2019 liability e e days
ogy Co., guarante
Ltd. e
Nanning Joint
New and
Hope May 29, several Non Non 1264
15,500 Jul. 28, 2021 5,000 No Yes
Farming 2021 liability e e days
Technol guarante
ogy Co., e
167
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Ltd.
Nanning
Joint
New
and
Hope
May 29, several Non Non 364
Farming 15,500 Mar. 30, 2022 5,000 No Yes
2021 liability e e days
Technol
guarante
ogy Co.,
e
Ltd.
Neiqiu Joint
Xinliu and
Farming Apr. 29, several Non Non 3286
29,000.34 Jul. 20, 2020 29,000.34 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Ningbo Joint
New and
Hope Apr. 29, several Non Non 1826
17,000 Jul. 03, 2020 13,125 No Yes
Liuhe 2020 liability e e days
Farming guarante
Co., Ltd. e
Joint
Ningmin
and
g
Oct. 25, several Non Non 3651
Xinhao 50,000 Apr. 15, 2020 36,000 No Yes
2019 liability e e days
Farming
guarante
Co., Ltd.
e
Pizhou Joint
New and
Hope Apr. 29, several Non Non 1825
35,000 Mar. 31, 2021 18,000 No Yes
Liuhe 2020 liability e e days
Farming guarante
Co., Ltd. e
PingYua Joint
n Xinliu and
Farming Apr. 29, several Non Non 2466
23,100 Mar. 1, 2021 4,529.05 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Joint
Pucheng
and
Xinliu
Apr. 29, several Non Non 1825
Technol 23,500 Nov. 20, 2020 18,087.13 No Yes
2020 liability e e days
ogy Co.,
guarante
Ltd.
e
Puyang Joint
Xinliu and
Farming Apr. 29, several Non Non 1673
20,000 Jan. 6, 2021 20,000 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Joint
Qingdao and
Liuhe May 29, several Non Non 365
6,000 Mar. 31, 2022 800 No Yes
Feed 2021 liability e e days
Co., Ltd. guarante
e
Raoyang Apr. 29, 5,000 Apr. 30, 2021 5,000 Joint Non Non 1065 No Yes
168
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Xinhao 2020 and e e days
Farming several
Co., Ltd. liability
guarante
e
Joint
Rong
and
County
Oct. 25, several Non Non 3175
Xinmu 25,300 Mar. 12, 2020 25,100 No Yes
2019 liability e e days
Farming
guarante
Co., Ltd.
e
Joint
Rugao and
Xinhao Apr. 29, several Non Non 1094
9,000 Oct. 15, 2020 5,000 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Ruzhou
Joint
Quanshe
and
ng
Apr. 29, several Non Non 1673
Farming 8,400 Jan. 6, 2021 8,400 No Yes
2020 liability e e days
Technol
guarante
ogy Co.,
e
Ltd.
Rui'an Joint
New and
Hope Apr. 29, several Non Non 1864
5,000 Nov. 13, 2020 5,000 No Yes
Liuhe 2020 liability e e days
Farming guarante
Co., Ltd. e
Santai
Joint
New
and
Hope
May 29, several Non Non 1095
Farming 20,000 Apr. 01, 2022 17,000 No Yes
2021 liability e e days
Technol
guarante
ogy Co.,
e
Ltd.
Joint
Shandon
and
g
May 29, several Non Non 2545
Kinghey 30,000 Jul. 13, 2021 14,074.51 No Yes
2021 liability e e days
Food
guarante
Co., Ltd.
e
Shandon Joint
g New and
Hope Apr. 29, several Non Non 1094
150,000 Apr. 29, 2020 4,000 No Yes
Liuhe 2020 liability e e days
Group guarante
Co., Ltd. e
Joint
Shaoyan and
g Xinmu May 29, several Non Non 2457
15,300 Jul. 30, 2021 3,800 No Yes
Farming 2021 liability e e days
Co., Ltd. guarante
e
Shenze Apr. 29, Joint Non Non 2909
30,000 May 19, 2020 20,561 No Yes
New 2020 and e e days
169
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Hope several
Liuhe liability
Breedin guarante
g Co., e
Ltd.
Shiyan Joint
Xinyue and
Farming Apr. 29, several Non Non 2918
28,400 Apr. 15, 2021 11,192.5 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Joint
Shuozho
and
u
Apr. 29, several Non Non 1283
Xinhao 40,000 Sept. 1, 2020 28,800 No Yes
2020 liability e e days
Farming
guarante
Co., Ltd.
e
Sichuan
New
Joint
Hope
and
Animal
May 29, several Non Non 313
Nutritio 370,000 Jan. 18, 2022 42,603.96 No Yes
2021 liability e e days
n
guarante
Technol
e
ogy Co.,
Ltd.
Sichuan Joint
New and
Hope Oct. 25, several Non Non 2551
78,210.92 Dec. 31, 2019 29,412 No Yes
Liuhe 2019 liability e e days
Farming guarante
Co., Ltd e
Sichuan Joint
New and
Hope Oct. 25, several Non Non 1086
42,546.4 Feb. 10, 2020 16,000 No Yes
Liuhe 2019 liability e e days
Farming guarante
Co., Ltd e
Sichuan Joint
New and
Hope Apr. 29, several Non Non 729
79,242.68 Feb. 25, 2021 29,800 No Yes
Liuhe 2020 liability e e days
Farming guarante
Co., Ltd e
Joint
Suixi and
Xinhao Apr. 29, several Non Non 1825
4,000 Mar. 29, 2021 4,000 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Taiqian Joint
Xinliu and
Farming Apr. 29, several Non Non 2489
10,000 Aug. 27, 2020 9,650 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Taiqian Apr. 29, 10,000 Aug. 27, 2020 9,650 Joint Non Non 2489 No Yes
170
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Xinliu 2020 and e e days
Farming several
Technol liability
ogy Co., guarante
Ltd. e
Joint
Tangsha
and
n
Oct. 25, several Non Non 1825
Xinhao 25,398.64 Apr. 24, 2020 24,300 No Yes
2019 liability e e days
Farming
guarante
Co., Ltd.
e
Joint
Tangsha
and
n
Apr. 29, several Non Non 2911
Xinhao 39,101.36 May 8, 2020 37,410 No Yes
2020 liability e e days
Farming
guarante
Co., Ltd.
e
Tianjin Joint
Xinliu and
Farming Apr. 29, several Non Non 3259
41,000 Feb. 5, 2021 22,200.33 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Tongche
Joint
ng
and
Xinliu
Apr. 29, several Non Non 1747
Farming 13,712.83 Jan. 27, 2021 12,559.99 No Yes
2020 liability e e days
Technol
guarante
ogy Co.,
e
Ltd.
Tongche
Joint
ng
and
Xinliu
May 29, several Non Non 2119
Farming 5,884.73 Jan. 01, 2022 5,390 No Yes
2021 liability e e days
Technol
guarante
ogy Co.,
e
Ltd.
Tongche
Joint
ng
and
Xinliu
Apr. 29, several Non Non 2431
Farming 14,902.44 Feb. 23, 2021 13,649.59 No Yes
2020 liability e e days
Technol
guarante
ogy Co.,
e
Ltd.
Joint
Weinan
and
Xinliu
Oct. 25, several Non Non 4382
Technol 50,401.94 Dec. 24, 2019 44,000 No Yes
2019 liability e e days
ogy Co.,
guarante
Ltd.
e
Joint
Weinan
and
Xinliu
Apr. 29, several Non Non 1874
Technol 6,598.06 Mar. 2, 2021 5,759.99 No Yes
2020 liability e e days
ogy Co.,
guarante
Ltd.
e
Wuqi Apr. 29, 16,000 Sept. 15, 2020 9,500 Joint Non Non 2622 No Yes
171
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Xinliu 2020 and e e days
Technol several
ogy Co., liability
Ltd. guarante
e
Wuhe
Joint
New
and
Hope
May 29, several Non Non 1461
Liuhe 10,863.51 Jun. 29, 2021 6,600 No Yes
2021 liability e e days
Livestoc
guarante
k Co.,
e
Ltd.
Wuhe
Joint
New
and
Hope
Apr. 29, several Non Non 1825
Liuhe 20,426.31 Jun. 04, 2020 12,409.77 No Yes
2020 liability e e days
Livestoc
guarante
k Co.,
e
Ltd.
Wuhe
Joint
New
and
Hope
Apr. 29, several Non Non 2921
Liuhe 30,725.08 Sept. 29, 2020 18,666.67 No Yes
2020 liability e e days
Livestoc
guarante
k Co.,
e
Ltd.
Wuhe
Joint
New
and
Hope
Apr. 29, several Non Non 2548
Liuhe 39,503.67 May 22, 2020 24,000 No Yes
2020 liability e e days
Livestoc
guarante
k Co.,
e
Ltd.
Wuhe
Joint
New
and
Hope
Apr. 29, several Non Non 2547
Liuhe 17,451.12 May 20, 2020 10,602.23 No Yes
2020 liability e e days
Livestoc
guarante
k Co.,
e
Ltd.
Wuhe
Joint
New
and
Hope
Apr. 29, several Non Non 2556
Liuhe 34,730.31 Mar. 24, 2021 21,100 No Yes
2020 liability e e days
Livestoc
guarante
k Co.,
e
Ltd.
Joint
Wulian and
Xinhao Apr. 29, several Non Non 1822
10,200 Jun. 24, 2020 7,541.67 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Xiajiang Joint
Xinliu Apr. 29, and Non Non 1713
6,000 Feb. 4, 2021 5,250 No Yes
Farming 2020 several e e days
Co., Ltd. liability
172
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
guarante
e
Xiajin Joint
New and
Hope Oct. 25, several Non Non 2188
25,300 Feb. 28, 2020 5,440.1 No Yes
Liuhe 2019 liability e e days
Farming guarante
Co., Ltd. e
Xiangya Joint
ng New and
Hope May 29, several Non Non 364
8,500 Nov. 25, 2021 1,000 No Yes
Liuhe 2021 liability e e days
Feed guarante
Co., Ltd. e
Xiangsh Joint
an and
Huatong Apr. 29, several Non Non 1754
21,000 May 21, 2021 16,000 No Yes
Livestoc 2020 liability e e days
k Co., guarante
Ltd. e
Xiaoyi Joint
New and
Hope May 29, several Non Non 367
30,000 May 23, 2022 20,000 No Yes
Liuhe 2021 liability e e days
Food guarante
Co., Ltd. e
Xinji Joint
Xinliu and
Farming Apr. 29, several Non Non 2355
20,000 Jan. 08, 2021 19,300 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Xinji Joint
Xinliu and
Farming Apr. 29, several Non Non 2349
20,000 Jan. 14, 2021 19,300 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
New
Hope
Liuhe
Joint
(Zibo)
and
Agricult
May 29, several Non Non 2536
ural 45,000 Mar. 14, 2022 3,960 No Yes
2021 liability e e days
Technol
guarante
ogy
e
Develop
ment
Co., Ltd.
Joint
New
and
Hope
Apr. 29, several Non Non 1095
Singapor 450,191.43 Oct. 19, 2020 234,899 No Yes
2020 liability e e days
e Pte.
guarante
Ltd.
e
New May 29, Joint Non Non 509
76,904.18 Oct. 1, 2021 40,126.74 No Yes
Hope 2021 and e e days
173
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Singapor several
e Pte. liability
Ltd. guarante
e
Joint
New
and
Hope
May 29, several Non Non 371
Singapor 28,208.78 Oct. 1, 2021 14,718.66 No Yes
2021 liability e e days
e Pte.
guarante
Ltd.
e
Joint
New
and
Hope
May 29, several Non Non 509
Singapor 63,460.86 Oct. 1, 2021 33,112.34 No Yes
2021 liability e e days
e Pte.
guarante
Ltd.
e
Joint
New
and
Hope
May 29, several Non Non 295
Singapor 28,039.34 Oct. 1, 2021 14,630.25 No Yes
2021 liability e e days
e Pte.
guarante
Ltd.
e
Joint
New
and
Hope
May 29, several Non Non 365
Singapor 38,219.64 Oct. 1, 2021 19,942.08 No Yes
2021 liability e e days
e Pte.
guarante
Ltd.
e
Joint
New
and
Hope
May 29, several Non Non 391
Singapor 57,475.77 Oct. 1, 2021 29,989.47 No Yes
2021 liability e e days
e Pte.
guarante
Ltd.
e
Xingren Joint
Xinliu and
Farming Apr. 29, several Non Non 2914
11,000 Sept. 30, 2020 10,725 No Yes
Technol 2020 liability e e days
ogy Co., guarante
Ltd. e
Joint
Yantai and
Xinhao Apr. 29, several Non Non 1780
21,275.32 Oct. 12, 2020 18,955.32 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Joint
Yantai and
Xinhao Apr. 29, several Non Non 1812
16,824.68 Oct. 27, 2020 14,990 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
Joint
Yanting
and
Xinhao Apr. 29, Non Non 1808
8,124.77 Dec. 21, 2020 3,933.3 several No Yes
Farming 2020 e e days
liability
Co., Ltd.
guarante
174
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
e
Joint
Yanting and
Xinhao May 29, several Non Non 1185
49,575.28 Jan. 01, 2022 24,000 No Yes
Farming 2021 liability e e days
Co., Ltd. guarante
e
Joint
Yanting and
Xinhao Apr. 26, several Non Non 1827
22,814.95 Sept. 30, 2019 11,045 No Yes
Farming 2019 liability e e days
Co., Ltd. guarante
e
YanYuan Joint
Xinliu and
Farming May 29, several Non Non 3604
34,000 Jun. 15, 2021 20,000 No Yes
Technol 2021 liability e e days
ogy Co., guarante
Ltd. e
Joint
Yanshi and
Liuhe Jun. 01, several Non Non 728
10,000 Jun. 24, 2022 3,500 No Yes
Feed 2022 liability e e days
Co., Ltd. guarante
e
Joint
Yanggu
and
Liuhe
May 29, several Non Non 364
Luxin 15,000 Mar. 28, 2022 5,000 No Yes
2021 liability e e days
Food
guarante
Co., Ltd.
e
Yangling
Joint
Besun
and
Agricult
Apr. 26, several Non Non 1827
ural 27,207 Sept. 24, 2019 7,000 No Yes
2019 liability e e days
Industry
guarante
Group
e
Co., Ltd.
Yangling
Joint
Besun
and
Agricult
Jun. 01, several Non Non 2394
ural 2,793 Jun. 02, 2022 718.69 No Yes
2022 liability e e days
Industry
guarante
Group
e
Co., Ltd.
Joint
Yijun
and
Xinliu
Oct. 25, several Non Non 4382
Technol 16,500 Nov. 15, 2019 15,350 No Yes
2019 liability e e days
ogy Co.,
guarante
Ltd.
e
Joint
Yinchen
and
g
Apr. 29, several Non Non 3776
Xinhao 50,793.82 Aug. 18, 2020 29,618.42 No Yes
2020 liability e e days
Farming
guarante
Co., Ltd.
e
175
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Joint
Yinchen
and
g
Apr. 29, several Non Non 2922
Xinhao 16,206.18 Sept. 25, 2020 9,450 No Yes
2020 liability e e days
Farming
guarante
Co., Ltd.
e
Joint
Yunchen
and
g
May 29, several Non Non 306
Dingtai 3,000 Mar. 2, 2022 1,000 No Yes
2021 liability e e days
Feed
guarante
Co., Ltd.
e
Joint
Zhanjian
and
g
May 29, several Non Non 731
Guoxion 20,000 Apr. 19, 2022 5,000 No Yes
2021 liability e e days
g Feed
guarante
Co., Ltd.
e
Zhangw Joint
u and
Xinwan May 29, several Non Non 3612
74,000 Jan. 04, 2022 11,700 No Yes
g 2021 liability e e days
Farming guarante
Co., Ltd. e
Joint
Changch
and
un New
Jun. 01, several Non Non 332
Hope 4,565.22 Jun. 20, 2022 1,400 No Yes
2022 liability e e days
Feed
guarante
Co., Ltd.
e
Joint
Changch
and
un New
May 29, several Non Non 367
Hope 55,434.78 Apr. 27, 2022 17,000 No Yes
2021 liability e e days
Feed
guarante
Co., Ltd.
e
Joint
Zhaoqin
and
g
Apr. 29, several Non Non 2555
Xinhao 21,600 Feb. 10, 2021 21,600 No Yes
2020 liability e e days
Farming
guarante
Co., Ltd.
e
Zhejiang
Joint
Yihai
and
Agricult
Apr. 29, several Non Non 1642
ural 10,500 Jan. 20, 2021 10,500 No Yes
2020 liability e e days
Develop
guarante
ment
e
Co. Ltd.
Zhejiang
Joint
Yihai
and
Agricult
May 29, several Non Non 364
ural 3,396 Apr. 26, 2022 3,000 No Yes
2021 liability e e days
Develop
guarante
ment
e
Co. Ltd.
Zhejiang Apr. 29, 4,448.69 Feb. 26, 2021 4,448.69 Joint Non Non 2737 No Yes
176
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Yihai 2020 and e e days
Agricult several
ural liability
Develop guarante
ment e
Co. Ltd.
Zhenjian Joint
g New and
Hope Apr. 29, several Non Non 1734
20,000 Mar. 19, 2021 11,000 No Yes
Liuhe 2020 liability e e days
Farming guarante
Co., Ltd. e
Chongqi
ng Joint
Pengshu and
i Xinliu Apr. 29, several Non Non 2922
10,000 Apr. 19, 2021 7,250 No Yes
Farming 2020 liability e e days
Technol guarante
ogy Co., e
Ltd.
Joint
Chongqi
and
ng New
May 29, several Non Non 1095
Hope 40,000 May 31, 2021 20,000 No Yes
2021 liability e e days
Feed
guarante
Co., Ltd.
e
Joint
Zibo and
Xinhao Apr. 29, several Non Non 3215
12,000 May 6, 2021 5,141.42 No Yes
Farming 2020 liability e e days
Co., Ltd. guarante
e
New
Hope Joint
Liuhe and
Co., Ltd. Jun. 01, several Non Non One
800 Jun. 01, 2022 0.82 No Yes
Mianyan 2022 liability e e year
g Hope guarante
Feed e
Branch
Emeisha Joint
n New and
Hope Jun. 01, several Non Non One
3,000 Jun. 01, 2022 8.29 No Yes
Liuhe 2022 liability e e year
Feed guarante
Co., Ltd. e
Joint
Chongqi
and
ng New
Jun. 01, several Non Non One
Hope 3,000 Jun. 01, 2022 633.15 No Yes
2022 liability e e year
Feed
guarante
Co., Ltd.
e
Zihong Joint
Hengbo and
Jun. 01, Non Non One
Feed 400 Jun. 01, 2022 1.34 several No Yes
2022 e e year
Technol liability
ogy Co., guarante
177
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Ltd. e
Kunmin
g New Joint
Hope and
Agricult Jun. 01, several Non Non One
2,000 Jun. 01, 2022 3.15 No Yes
ural 2022 liability e e year
Technol guarante
ogy Co., e
Ltd.
Kunmin
Joint
g New
and
Hope
Jun. 01, several Non Non One
Animal 3,000 Jun. 01, 2022 16.57 No Yes
2022 liability e e year
Nutritio
guarante
us Food
e
Co., Ltd.
Guiyang
New Joint
Hope and
Agricult Jun. 01, several Non Non One
1,500 Jun. 01, 2022 536.25 No Yes
ural 2022 liability e e year
Technol guarante
ogy Co., e
Ltd.
Qiandon
gnan Joint
New and
Hope Jun. 01, several Non Non One
400 Jun. 01, 2022 123.72 No Yes
Farming 2022 liability e e year
Technol guarante
ogy Co., e
Ltd.
New
Joint
Hope
and
Liuhe
Jun. 01, several Non Non One
Feed 200 Jun. 01, 2022 22.25 No Yes
2022 liability e e year
Co., Ltd.
guarante
PingYua
e
n Banch
Joint
Qingyun and
Liuhe Jun. 01, several Non Non One
400 Jun. 01, 2022 1.21 No Yes
Feed 2022 liability e e year
Co., Ltd. guarante
e
Guantao Joint
Liuhe and
Food Jun. 01, several Non Non One
2,000 Jun. 01, 2022 80.55 No Yes
Co., Ltd. 2022 liability e e year
Feed guarante
Branch e
Joint
Liaoche and
ng Liuhe Jun. 01, several Non Non One
200 Jun. 01, 2022 38.5 No Yes
Feed 2022 liability e e year
Co., Ltd. guarante
e
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Huaihua Joint
New and
Hope Jun. 01, several Non Non One
1,500 Jun. 01, 2022 44.28 No Yes
Liuhe 2022 liability e e year
Feed guarante
Co., Ltd. e
Nanjing Joint
Guoxion and
g Jun. 01, several Non Non One
2,000 Jun. 01, 2022 478.7 No Yes
Technol 2022 liability e e year
ogy Co., guarante
Ltd. e
Joint
Baoji
and
New
Jun. 01, several Non Non One
Hope 300 Jun. 01, 2022 2.38 No Yes
2022 liability e e year
Farming
guarante
Co., Ltd.
e
Lingbao Joint
New and
Hope Jun. 01, several Non Non One
200 Jun. 01, 2022 9.02 No Yes
Liuhe 2022 liability e e year
Feed guarante
Co., Ltd. e
Joint
Shanghe and
Liuhe Jun. 01, several Non Non One
200 Jun. 01, 2022 4.42 No Yes
Feed 2022 liability e e year
Co., Ltd. guarante
e
Tangsha Joint
n New and
Hope Jun. 01, several Non Non One
3,000 Jun. 01, 2022 1.81 No Yes
Liuhe 2022 liability e e year
Feed guarante
Co., Ltd. e
Joint
Hebei
and
New
Jun. 01, several Non Non One
Hope 6,000 Jun. 01, 2022 7.5 No Yes
2022 liability e e year
Feed
guarante
Co., Ltd.
e
Joint
Pingxian
and
g New
Jun. 01, several Non Non One
Hope 400 Jun. 01, 2022 62.57 No Yes
2022 liability e e year
Feed
guarante
Co., Ltd.
e
Joint
Changch
and
un New
Jun. 01, several Non Non One
Hope 2,000 Jun. 01, 2022 78.35 No Yes
2022 liability e e year
Feed
guarante
Co., Ltd.
e
SanYuan Joint
Jun. 01, Non Non One
New 400 Jun. 01, 2022 17.63 and No Yes
2022 e e year
Hope several
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Feed liability
Co., Ltd. guarante
e
Joint
Huai'an
and
New
Jun. 01, several Non Non One
Hope 500 Jun. 01, 2022 14.64 No Yes
2022 liability e e year
Feed
guarante
Co., Ltd.
e
Joint
Shan
and
County
Jun. 01, several Non Non One
Liuhe 1,000 Jun. 01, 2022 11.92 No Yes
2022 liability e e year
Feed
guarante
Co., Ltd.
e
Ju Joint
County and
Liuhe Jun. 01, several Non Non One
500 Jun. 01, 2022 11.98 No Yes
Xingrun 2022 liability e e year
Feed guarante
Co., Ltd. e
Sichuan
New Joint
Hope and
Liuhe Jun. 01, several Non Non One
30,000 Jun. 01, 2022 45.62 No Yes
Farming 2022 liability e e year
Co., Ltd. guarante
Chengdu e
Branch
Zhanjian
Joint
g
and
Guoxion
Jun. 01, several Non Non One
g No. 1 500 Jun. 01, 2022 500 No Yes
2022 liability e e year
Native
guarante
Pig Feed
e
Co., Ltd.
Nanning
Joint
New
and
Hope
Jun. 01, several Non Non One
Farming 4,000 Jun. 01, 2022 55.6 No Yes
2022 liability e e year
Technol
guarante
ogy Co.,
e
Ltd.
Joint
Tangsha
and
n
Jun. 01, several Non Non One
Muzhen 200 Jun. 01, 2022 56.86 No Yes
2022 liability e e year
g Feed
guarante
Co., Ltd.
e
Sichuan
New Joint
Hope and
Animal Jun. 01, several Non Non One
40,000 Jun. 01, 2022 4,956.07 No Yes
Nutritio 2022 liability e e year
n guarante
Technol e
ogy Co.,
180
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Ltd.
Joint
Heze and
Xinhao Jun. 01, several Non Non One
600 Jun. 01, 2022 39.79 No Yes
Feed 2022 liability e e year
Co., Ltd. guarante
e
Wei Joint
County and
New Jun. 01, several Non Non One
500 Jun. 01, 2022 402.8 No Yes
Hope 2022 liability e e year
Feed guarante
Co., Ltd. e
Feed
Plant of
Zhejiang Joint
Xindong and
wan Jun. 01, several Non Non One
200 Jun. 01, 2022 1.99 No Yes
Agricult 2022 liability e e year
ural guarante
Develop e
ment
Co., Ltd.
Hainan
New
Joint
Hope
and
Liuhe
Jun. 01, several Non Non One
Supply 40,000 Jun. 01, 2022 2,836.96 No Yes
2022 liability e e year
Chain
guarante
Technol
e
ogy Co.,
Ltd.
Joint
Zhongsh and
an Liuhe Jun. 01, several Non Non One
2,000 Jun. 01, 2022 4.99 No Yes
Feed 2022 liability e e year
Co., Ltd. guarante
e
Total amount of
Total amount of
guarantee actually
guarantee provided for
incurred for
subsidiaries approved 178,258.22 293,294.31
subsidiaries during
during the reporting
the reporting period
period (B1)
(B2)
Total amount of Total balance of
guarantee provided for actual guarantee for
subsidiaries approved 5,006,120.03 subsidiaries at the end 2,579,075.96
at the end of the of reporting period
reporting period (B3) (B4)
Guarantees provided by subsidiaries for subsidiaries
Date of Whe
Name of Wheth
disclosure Amount Counter ther
guarante Guarant Date Type of Guarant er
of related actually Collateral guarante relat
e eed actually guarante ee fully
announcem guarante s(if any) e (if ed-
benefici amount incurred e period perfor
ent of ed any) party
ary med
guaranteed guar
181
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
amount antee
Joint
New
and
Hope
May 29, several 174
Tarlac 18,000 Apr. 7, 2022 2,378.63 None None No Yes
2021 liability days
Agricult
guarante
ure Inc.
e
Joint
New
and
Hope
May 29, several 163
Isabela 1,400 Apr. 7, 2022 866.06 None None No Yes
2021 liability days
Agricult
guarante
ure Inc.
e
New Joint
Hope and
Central May 29, several 161
12,600 Apr. 7, 2022 2,951.94 None None No Yes
Luzon 2021 liability days
Agricult guarante
ure Inc. e
Qingdao
New Joint
Hope and
Herun May 29, Apr. 22, several 1825
4,000 417.43 None None No Yes
Bio- 2021 2022 liability days
technolo guarante
gy Co., e
Ltd.
Total amount of
Total amount of
guarantee actually
guarantee provided for
incurred for
subsidiaries approved 6,614.06
subsidiaries during
during the reporting
the reporting period
period (C1)
(C2)
Total amount of Total balance of
guarantee provided for actual guarantee for
subsidiaries approved 36,000 subsidiaries at the 6,614.06
at the end of the end of reporting
reporting period (C3) period (C4)
Total amount of guarantee provided by the Company (i.e. the aggregate of the above three)
Total amount of
Total amount of
guarantee actually
guarantee approved
178,258.22 incurred during the 299,908.37
during the reporting
reporting period
period (A1+B1+C1)
(A2+B2+C2)
Total amount of
Total balance of
guarantee approved
actual guarantee at
at the end of the 5,042,120.03 2,585,690.02
the end of reporting
reporting period
period (A4+B4+C4)
(A3+B3+C3)
Proportion of total amount of actual
guarantee(i.e. A4+B4+C4) in the Company’s 96.77%
net assets
Wherein:
Balance of debt guarantee provided directly
1,853,681.37
or indirectly for the guaranteed subjects each
182
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
with asset-liability ratio of over 70% (E)
Amount of total guarantee in excess of 50%
1,249,689.55
of net assets (F)
Total amount of the above three guarantees
3,103,370.92
(D+E+F)
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. Other significant contracts
□applicable not applicable
The Company had no other significant contracts during the reporting period.
XIII: Remarks on other significant matters
applicable □not applicable
1. The Company terminated the share repurchase plan of 2021 ahead of schedule. A total of 10,017,501 shares were
repurchased, accounting for 0.2224% of the Company's total share capital. The highest transaction price was 24.15 Yuan per share,
and the lowest transaction price was 20.81 Yuan per share. The total payment was 229,959,017.80 Yuan (excluding transaction
fees).
2. To increase the work efficiency and enhance strategic cooperation with major raw materials suppliers, according to the
actual needs of the purchasing business, the Company guaranteed the payment for raw materials of up to 4,867.05 million Yuan
for the raw materials purchase and sale contracts signed between 153 subsidiaries and 70 feed ingredient suppliers including
COFCO Trade Co., Ltd within the period of authorization, accounting for 14.51% of the Company’s most recently audited
(FY2021) net assets of 33,538.5538 million Yuan attributable to shareholders of the listed company. This matter has been
deliberated and approved by the Company’s 2021 annual general meeting of shareholders.
3. To increase the work efficiency and carry out financing work in a planned way, according to the actual situation of
production and operation, the Company estimates that the total amount of financing guarantees provided by the Company and its
majority-owned subsidiaries with joint and several liability for subsidiaries in 2022 will be 76.5 billion, accounting for 228.01% of
the Company’s most recently audited (FY2021) net assets of 33,538.5538 million Yuan attributable to shareholders of the listed
company, including a total financing guarantee of 71.55 billion Yuan for the Company's majority-owned subsidiaries (including up
to 6 billion Yuan reserved for the Company's majority-owned subsidiaries), a total financing guarantee of 4.45 billion Yuan for
farms (farmers) or dealers, and 500 million Yuan of guarantee provided for Chengdu Dekang Animal Health Technology Service
Co., Ltd. This matter has been deliberated and approved by the Company’s 2021 annual general meeting of shareholders.
4. According to actual operational needs, the Company and its affiliates decided to sign related daily purchase and sales
agreements to purchase meat products, farming equipment and other products from its affiliates and their subsidiaries for no more
than 3,781.35 million Yuan in 2022, and the total amount of actual transactions of the same type in 2021 was 557.1692 million
Yuan; to receive services worth no more than 1.33 billion Yuan from its affiliates and their subsidiaries, and the total amount of
actual transactions of the same type in 2021 was 1,023.6582 million Yuan; to rent assets of no more than 4.1 million Yuan from its
affiliates, and the total amount of actual transactions of the same type in 2021 was 1.6267 millio n Yuan; and to sell feeds, meat
183
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
products and parts of no more than 1,376.60 million Yuan to its affiliates and their subsidiaries, and the total amount of actual
transactions of the same type in 2021 was 262.5317 million Yuan. This matter has been deliberated and approved by the
Company’s 2021 annual general meeting of shareholders.
5. The 52nd meeting of the 8th board of directors, the 29th meeting of the 8th board of supervisors and the 2021 annual general
meeting of shareholders deliberated and approved the 2022 Employee Stock Ownership P lan (Draft) and its Summary. The
employees involved in this employee stock ownership plan are the supervisors and core employees of the Company (including
those of majority-owned subsidiaries), with a total number of no more than 2,326, a shareholding scale of no more than 41.37
million shares, and a duration of no more than 60 months. The stock source of this employee stock ownership plan is the commo n
stock of the Company repurchased by the special securities account of the Company, and the price of the repurchased shares is
7.98 Yuan per share.
6. The term of the eighth board of directors of the Company expired in June 2022. According to relevant regulations of CSRC
and Shenzhen Stock Exchange, after consulting the Company's shareholders and independent directors in advance, the board of
directors of the Company elected candidates for the ninth board of directors: Liu Yonghao, Liu Chang, Wang Hang, Li Jianxiong,
Zhang Minggui, Wang Jiafen, Chen Huanchun and Cai Manli. This general election has been deliberated and approved by the
Company's 2021 annual general meeting of shareholders, and the term of office is three years from the date of approval by the
Company's general meeting of shareholders.
7. The term of the eighth board of supervisors of the Company expired in June 2022. According to relevant regulations of
CSRC and Shenzhen Stock Exchange, the board of supervisors of the Company elected candidates for shareholder representative
supervisors of the ninth board of supervisors: Xu Zhigang and Ji Yueqi. This general election has been deliberated and approved
by the Company's 2021 annual general meeting of shareholders, and the term of office is three years from the date of approval by
the Company's general meeting of shareholders.
8. The 41st meeting of the 8th board of directors, the 21st meeting of the 8th board of supervisors and the 1st extraordinary
general meeting of 2022 deliberated and approved the Proposal to Cancel Some Stock Options and Repurchase Some Restricted
Stocks for Cancellation, agreeing to cancel a total of 1,246,445 stock options already granted to but not yet exercised by 6
incentive objects who already separated from the Company, and to repurchase and cancel a total of 168,750 shares of restricted
stocks granted but not yet released for sale. The Company handled and completed the repurchase and cancellation formalities for
these stock options and restricted stocks with CSDC Shenzhen on April 20, 2022.
9. The 49th meeting of the 8th board of directors, the 27th meeting of the 8th board of supervisors and the 1st extraordinary
general meeting of 2022 deliberated and approved the Proposal on the Company's Private Offering of Shares, to privately offer no
more than 367,647,058 shares (inclusive) to its largest shareholder South Hope Industrial Co., Ltd., at the price of 12.24 Yuan per
share, and the total amount of funds raised is expected to be no more than 4.5 billion Yuan.
In August 2022, the Company received the Reply on Approval of the Non-public Issuing of Stock by New Hope Liuhe Co.,
Ltd. (CSRC Approval [2022] No.1747) issued by CSRC, approving the Company's non-public issuance of no more than
367,647,058 new shares, with a validity of 12 months from the date of approval for issuance.
10. The 3rd meeting of the 9th board of directors and the 2nd meeting of the 9th board of supervisors deliberated and approved
the Proposal on Adjusting Matters Related to the 2022 Restricted Stock Incentive Plan and the Proposal on Granting Restricted
Stocks to Incentive Beneficiaries for the First Time. Given that 13 incentive objects voluntarily gave up some or all of the
restricted stocks to be granted to them due to personal reasons, which is 1.22 million shares in total, the board of directors of the
Company, according to the authorization of the 2021 annual general meeting of shareholders, adjusted the number of the first
batch of incentive objects of this incentive plan from 203 to 199; the number of restricted shares to be granted in this incentive
plan remained unchanged at 41.37 million, of which the number of the first batch of restricted shares to be granted was 33,275,000,
and the number of restricted shares reserved for grant was 8,095,000. Meantime, the board of directors of the Company
determined that the conditions for the first grant specified in the 2022 restricted stock incentive plan had been fulfilled, and that
184
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
July 25, 2022 was the first granting date for granting 33,275,000 restricted shares to 199 incentive objects who met the granting
conditions at the price of 7.98 Yuan per share.
XIV. Significant matters of the Company’s subsidiaries
□applicable not applicable
185
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Section 7 Changes in Shares and Information about Shareholders
I. Changes in shares
1. Changes in shares
Unit: shares
Increase or decrease due to this change (+, -
Before After
)
Prov
N
iden
e
B t
w
on fund
sh
Proporti us conv Proporti
Amount ar Others Subtotal Amount
on sh erte on
es
ar d
iss
es into
ue
shar
d
es
I. Restricted
181,405,342 4.03% 123,874 123,874 181,529,216 4.03%
shares
1. Shares held
by the state
2. Shares held
by state-owned
legal persons
3. Shares held
by other
181,405,342 4.03% 123,874 123,874 181,529,216 4.03%
domestic-funded
entities
Wherein:
shares held by
177,147,918 3.93% 0 0 177,147,918 3.93%
domestic legal
persons
Shares held
by domestic 4,257,424 0.10% 123,874 123,874 4,381,298 0.10%
natural persons
4. Shares held
by foreign capital
Wherein:
shares held by
overseas legal
persons
Shares held
by overseas
natural persons
II. Unrestricted
4,323,806,000 95.97% -244,142 -244,142 4,323,561,858 95.97%
shares
1. RMB 4,323,806,000 95.97% -244,142 -244,142 4,323,561,858 95.97%
186
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
ordinary shares
2. Foreign
shares listed at
home
3. Foreign
shares listed
abroad
4. Others
100.00
III. Total shares 4,505,211,342 -120,268 -120,268 4,505,091,074 100.00%
%
Reasons for changes in shares
applicable □not applicable
1. Since 2 incentive objects of the Company's 2019 restricted stock and stock option incentive plan have resigned, the Company
repurchased the canceled 168,750 shares of restricted stocks granted but not yet released for sale on April 20, 2022.
2. On May 9, 2022, the Company's “Hope Convertible Bond 2” entered the conversion period, and other increase in shares was
due to the conversion of “Hope Convertible Bond 2”. As of the end of the reporting period, the number of shares increased due to
the conversion of “Hope Convertible Bond 2” was 48,482 shares.
Approval of changes in shares
applicable □not applicable
Other changes in shares were in accordance with laws, regulations and normative documents such as Shenzhen Stock
Exchange Listing Rules and theSelf-regulatory Guideline No.3 of Shenzhen Stock Exchange for Listed Companies—Standardized
Operation of Main Board Listed Companies, and relevant requirements of the Management Rules for the Shares of the Company
Held by Directors, Supervisors or Senior Executives of Listed Companies and Their Changes.
Title transfer of changes in shares
applicable □not applicable
On April 20, 2022, the Company finished the repurchase and cancellation formalities for the Company’s 2019 restricted stock
and stock option incentive plan with CSDC Shenzhen Branch, canceling a total of 1,246,445 stock options and repurchasing a tota l
of 168,750 shares of restricted stocks canceled.
Progress of share repurchase
applicable □not applicable
The 49th meeting of the 8th board of directors of the Company deliberated and approved the Proposal on Early Termination of
Repurchase of the Company's Shares. To ensure the Company's stable operation and healthy development, the Company gave
priority to investing funds into the its daily operations based on capital needs, and the board of directors of the Company decided
to terminate the share repurchase according to the authorization of the general meeting of shareholders.
The Company repurchased 10,017,501 shares this time, accounting for 0.2224% of its total share capital. The highest transaction
price was 24.15 Yuan per share, and the lowest transaction price was 20.81 Yuan per share. The total payment was 229,959,017.80
Yuan (excluding transaction fees).
Progress of reducing share repurchased by centralized bidding
□applicable not applicable
The impact of changes in shares on financial indicators such as basic earnings per share and diluted earnings per share, net assets
per share attributable to ordinary shareholders of the Company in the most recent year and the most recent period
187
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
□applicable not applicable
Other information deemed necessary by the Company or required to be disclosed by securities regulators
□applicable not applicable
2. Changes in restricted shares
applicable □not applicable
Unit: shares
Restricted
Restricted
Beginning shares Ending
shares Reasons for
Name of number of released for number of
increased in restriction on Date of release
shareholder restricted sale in the restricted
the current sales
shares current shares
period
period
Private
New Hope
79,716,563 0 0 79,716,563 placement of July 12, 2022
Group Co., Ltd.
shares
South Hope Private
Industrial Co., 97,431,355 0 0 97,431,355 placement of July 12, 2022
Ltd. shares
Released in installments
Locked shares
according to SZSE rules
Liu Chang 1,616,589 0 0 1,616,589 of senior
and incumbency of
executives
senior executives
Released in installments
Locked shares
according to SZSE rules
Liu Yonghao 669,240 0 0 669,240 of senior
and incumbency of
executives
senior executives
Released in installments
Locked shares
according to SZSE rules
Wang Hang 45,000 0 0 45,000 of senior
and incumbency of
executives
senior executives
Released in installments
Locked shares
according to SZSE rules
Cai Manli 7,500 0 0 7,500 of senior
and incumbency of
executives
senior executives
Released in installments
Locked shares
according to SZSE rules
Han Jitao 48,750 3,000 0 45,750 of senior
and incumbency of
executives
senior executives
Released in installments
Locked shares
according to SZSE rules
Deng Cheng 0 0 143,437 143,437 of senior
and incumbency of
executives
senior executives
Locked shares
of senior
Released in installments
executives,
according to SZSE rules
Tao Yuling 168,750 0 0 168,750 restricted
and incumbency of
shares of
senior executives
equity
incentives
Locked shares Released in installments
of senior according to SZSE rules
Ji Chongxing 365,625 0 121,875 487,500
executives, and incumbency of
restricted senior executives
188
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shares of
equity
incentives
Locked shares
of senior
Released in installments
executives,
according to SZSE rules
Zhu Liqiang 121,875 0 40,625 162,500 restricted
and incumbency of
shares of
senior executives
equity
incentives
Released in installments
Locked shares
according to SZSE rules
Wang Jiyong 41,250 10,313 0 30,937 of senior
and incumbency of
executives
senior executives
Released in installments
Locked shares
according to SZSE rules
Wang Shuhua 197,845 0 0 197,845 of senior
and incumbency of
executives
senior executives
Released in installments
Locked shares
according to SZSE rules
Hu Ji 191,250 0 0 191,250 of senior
and incumbency of
executives
senior executives
Released in 4
Restricted
installments according
shares of
Yan Zhichun 112,500 0 0 112,500 to the Company’s
equity
performance target
incentives
completion
Released in 4
Restricted
installments according
shares of
Wang Jianmin 45,000 0 0 45,000 to the Company’s
equity
performance target
incentives
completion
Released in 4
Restricted
installments according
shares of
Wan Fang 33,750 33,750 0 0 to the Company’s
equity
performance target
incentives
completion
Released in 4
Restricted
installments according
shares of
Sun Laifeng 45,000 0 0 45,000 to the Company’s
equity
performance target
incentives
completion
Released in 4
Restricted
installments according
shares of
Ma Zhenqiang 60,000 0 0 60,000 to the Company’s
equity
performance target
incentives
completion
Released in 4
Restricted
installments according
shares of
Liu Lei 135,000 135,000 0 0 to the Company’s
equity
performance target
incentives
completion
Released in 4
Restricted
installments according
Gong shares of
37,500 0 0 37,500 to the Company’s
Huazhong equity
performance target
incentives
completion
189
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Released in 4
Restricted
installments according
shares of
Bai Xubo 60,000 0 0 60,000 to the Company’s
equity
performance target
incentives
completion
Released in 4
Restricted
installments according
shares of
Yao Yongjian 60,000 0 0 60,000 to the Company’s
equity
performance target
incentives
completion
Released in 4
Restricted
installments according
shares of
Huang Yakuan 37,500 0 0 37,500 to the Company’s
equity
performance target
incentives
completion
Released in 4
Restricted
installments according
shares of
Zhou Guilian 30,000 0 0 30,000 to the Company’s
equity
performance target
incentives
completion
Released in 4
Restricted
installments according
shares of
Tang Yong 22,500 0 0 22,500 to the Company’s
equity
performance target
incentives
completion
Released in 4
Restricted
installments according
shares of
Liu Huaiwei 60,000 0 0 60,000 to the Company’s
equity
performance target
incentives
completion
Released in 4
Restricted
installments according
shares of
Feng Xiaohui 45,000 0 0 45,000 to the Company’s
equity
performance target
incentives
completion
Total 181,405,342 182,063 305,937 181,529,216 -- --
II. Issuance and listing of securities
□applicable not applicable
III. Number of shareholders of the Company and their shareholdings
Unit: shares
Total number of ordinary Total number of preferred shareholders
shareholders at the end of 222,714 with resumed voting power at the end of 0
the reporting period the reporting period (if any)(see Note 8)
Shareholders each holding over 5% shares or shareholdings of the top 10 shareholders
Pledge,
Increase or
Nature Number of ordinary Number of marking
Name of Shareho decrease Number of
of shares held at the restricted or
sharehold lding within the unrestricted ordinary
sharehol end of the reporting ordinary shares freezing
er ratio reporting shares held
der period held Shar A
period
e m
190
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statu o
s u
n
t
Domesti
South c non-
Hope state-
29.50% 1,328,957,185.00 0 97,431,355.00 1,231,525,830.00
Industrial owned
Co., Ltd. legal
person
Domesti
New c non-
Hope state-
25.08% 1,129,879,692.00 0 79,716,563.00 1,050,163,129.00
Group owned
Co., Ltd. legal
person
Domesti
China
c non-
Securities
state-
Finance 2.79% 125,602,591.00 0 0.00 125,602,591.00
owned
Corporati
legal
on Ltd.
person
Tibet
Domesti
Strong
c non-
Investme
state-
nt 2.33% 104,769,426.00 0 0.00 104,769,426.00
owned
Consultin
legal
g Co.,
person
Ltd.
Hong
Kong Oversea
Securities s legal 2.30% 103,409,037.00 -3,130,512 0.00 103,409,037.00
Clearing person
Co., Ltd.
Tibet
Shanchen Domesti
g c non-
Investme state-
2.08% 93,704,034.00 0 0.00 93,704,034.00
nt owned
Consultin legal
g Co., person
Ltd.
Lhasa
Develop Domesti
ment c non-
Area state-
1.20% 53,893,592.00 0 0.00 53,893,592.00
Hezhiwan owned
g legal
Industrial person
Co., Ltd.
Zheshang
Bank Co.,
Ltd. -
Cathay Others 0.55% 24,660,222.00 17,081,222 0.00 24,660,222.00
China
Securities
Animal
191
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Husbandr
y Trading
Open-
ended
Index
Securities
Investme
nt Fund
Beijing
Ruiyi
Investme
nt
Managem
ent Co.,
Ltd. -
Ruiyi
Others 0.47% 21,151,470.00 1,447,100 0.00 21,151,470.00
New
Hope
Growth
No. 1
Private
Securities
Investme
nt Fund
One-one-
five
Portfolio
of
Others 0.37% 16,809,918.00 16,809,918 0.00 16,809,918.00
National
Social
Security
Fund
Strategic investors or
general legal persons
becoming the top 10
ordinary shareholders None
due to placement of
new shares (if
any)(see Note 3)
Remarks on related-
party relationships New Hope Group is the controlling shareholder of South Hope, and both parties are persons acting in
among the aforesaid concert with each other. Apart from that, the Company is not aware of whether its top ten shareholders
shareholders or have other related-party relationships or actions in concert.
actions in concert
Remarks on
entrusted/fiduciary
voting rights and
waiver of voting None
rights involving the
aforesaid
shareholders
Special remarks on
repurchase accounts
The special securities account for repurchase of New Hope Liuhe Co., Ltd. is among the top ten
existing among the
shareholders, holding 69,631,459 shares.
top 10 shareholders
(if any)(see Note 11)
192
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Shareholdings of top 10 unrestricted shareholders.
Number of unrestricted shares held Share category
Name of shareholder
at the end of the reporting period Share category Amount
RMB ordinary
South Hope Industrial Co., Ltd. 1,231,525,830.00 1,231,525,830.00
shares
RMB ordinary
New Hope Group Co., Ltd. 1,050,163,129.00 1,050,163,129.00
shares
RMB ordinary
China Securities Finance Corporation Ltd. 125,602,591.00 125,602,591.00
shares
Tibet Strong Investment Consulting Co., RMB ordinary
104,769,426.00 104,769,426.00
Ltd. shares
RMB ordinary
Hong Kong Securities Clearing Co., Ltd. 103,409,037.00 103,409,037.00
shares
Tibet Shancheng Investment Consulting RMB ordinary
93,704,034.00 93,704,034.00
Co., Ltd. shares
Lhasa Development Area Hezhiwang RMB ordinary
53,893,592.00 53,893,592.00
Industrial Co., Ltd. shares
Zheshang Bank Co., Ltd. - Cathay China
Securities Animal Husbandry Trading RMB ordinary
24,660,222.00 24,660,222.00
Open-ended Index Securities Investment shares
Fund
Beijing Ruiyi Investment Management Co.,
RMB ordinary
Ltd. - Ruiyi New Hope Growth No. 1 21,151,470.00 21,151,470.00
shares
Private Securities Investment Fund
One-one-five Portfolio of National Social RMB ordinary
16,809,918.00 16,809,918.00
Security Fund shares
Remarks on related-party relationships or
actions in concert among the top 10 New Hope Group is the controlling shareholder of South Hope, and both parties are
unrestricted ordinary shareholders and persons acting in concert with each other. Apart from that, the Company is not
between the top 10 unrestricted ordinary aware of whether its top ten shareholders have other related-party relationships or
shareholders and the top 10 ordinary actions in concert.
shareholders
Remarks on participation of top 10 Among the top 10 shareholders, Beijing Ruiyi Investment Management Co., Ltd—
ordinary shareholders in securities margin Ruiyi New Hope Growth No. 1 Private Securities Investment Fund holds
trading business (if any)(see Note 4) 18,291,366 shares in a credit securities account.
Whether the top 10 ordinary shareholders and top 10 unrestricted ordinary shareholders of the Company conducted agreed
repurchase 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 executives
□applicable not applicable
There was no change in shareholdings of directors, supervisors or senior executives of the Company during the reporting period,
refer to 2021 annual report for details.
V. Changes of controlling shareholders or actual controller
Changes in controlling shareholders during the reporting period
□applicable not applicable
The controlling shareholders of the Company did not change during the reporting period.
193
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Changes of actual controller during the reporting period
□applicable not applicable
The actual controller of the Company did not change during the reporting period.
194
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Section 8 Details Related to Preferred Shares
□applicable not applicable
The Company had no preferred shares during the reporting period.
195
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Section 9 Details Related to Bonds
applicable □not applicable
I. Enterprise bonds
□applicable not applicable
The Company had no enterprise bonds during the reporting period.
II. Corporate bonds
applicable □not applicable
1. Basic information about corporate bonds
Unit: Yuan
Method
of
Bond principa
abbre Bond Bond Interes l Tradin
Bond name Date issued Value date Due date
viatio code balance t rate repayme g place
n nt and
interest
payment
Public issue
of renewable
Lump
corporate
sum
bonds by
principa
New Hope 21
May 28, Jun. 01, Jun. 01, l
Liuhe Co., Hope 149492 0.00 5.5% SZSE
2021 2021 2022 repayme
Ltd to Y1
nt and
professional
interest
investors in
payment
2021 (Phase
1) (Variety 1)
Investor suitability arrangements (if
Participation in trading is limited to professional investors
any)
Listed for trading to professional investors bilaterally on SZSE centralized bidding system
Applicable trading mechanism
and comprehensive protocol trading platform
Bonds that are overdue
□applicable not applicable
2. Trigger and enforcement of issuer or investor option clauses and investor protection clauses
□applicable not applicable
3. Adjustment to credit rating results during the reporting period
□applicable not applicable
196
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4. Performance and changes of guarantee, debt repayment plan and other debt repayment protection
measures during the reporting period and the impact on the rights and interests of bond investors
□applicable not applicable
III. Debt financing instruments of non-financial enterprises
applicable □not applicable
1. Basic information about debt financing instruments of non-financial enterprises
Unit: Yuan
Method
of
principa
Bond
Bond Bond Interes l Tradin
abbrevia Bond code Date issued Value date Due date
name balance t rate repayme g place
tion
nt and
interest
payment
The first
phase of
Interest
2020 20 Hope
paid
medium- Liuhe
annually
term (pandem
, and Interba
note(pand ic
Mar. 05, Mar. 09, Mar. 09, 2,000,000, principa nk
emic contain 102000264 3.43%
2020 2020 2023 000.00 l repaid bond
containm ment
in lump market
ent bond) bond)
sum
of New MTN00
upon
Hope 1
maturity
Liuhe
Co., Ltd.
The first
phase of Interest
2021 paid
21 Hope
medium- annually
Liuhe
term note , and Interba
(rural
(rural Mar. 17, Mar. 19, Mar. 19, 2,000,000, principa nk
revitaliz 102100490 4.9%
revitalizat 2021 2021 2026 000.00 l repaid bond
ation)
ion) of in lump market
MTN00
New sum
1
Hope upon
Liuhe maturity
Co., Ltd.
Interest
paid
Beijin
Debt 21 quarterl
g
financing Sichuan y, and
Financ
plan of New 21CFZR124 Nov. 25, Nov. 25, Nov. 25, 100,000,0 partial
4.02% ial
New Hope 0 2022 2021 2024 00.00 principa
Assets
Hope Liuhe l repaid
Excha
Liuhe ZR001 every
nge
six
months
197
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Interest
The first
paid
phase of Beijin
22 quarterl
2022 debt g
Sichuan y, and
financing Financ
New 22CFZR033 Mar. 31, Mar. 31, Mar. 31, 400,000,0 partial
plan of 4.02% ial
Hope 3 2022 2022 2024 00.00 principa
New Assets
Liuhe l repaid
Hope Excha
ZR001 every
Liuhe nge
six
Co., Ltd.
months
Bonds that are overdue
□applicable not applicable
2. Trigger and enforcement of issuer or investor option clauses and investor protection clauses
□applicable not applicable
3. Adjustment to credit rating results during the reporting period
□applicable not applicable
4. Performance and changes of guarantee, debt repayment plan and other debt repayment protection
measures during the reporting period and the impact on the rights and interests of bond investors
□applicable not applicable
IV. Convertible corporate bonds
applicable □not applicable
1. Previous adjustment and correction of share conversion price
(1) 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.
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 as of June 19, 2020.
As the Company privately issued RMB ordinary shares to South Hope and New Hope Group and additional 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) The initial conversion price of convertible corporate bonds issued by the Company (bond abbreviation: Hope Convertible
Bond 2, bond code: 127049) is 14.45 Yuan/share, which has not been adjusted to date.
2. Accumulated conversion into shares
applicable □not applicable
Abbrevi Start and Total Accumulat Accumulat Ratio of Amount of Ratio of
ation of end date of issued Total issue ed amount ed number number of outstanding amount
converti conversion quantity amount of of shares shares conversion of
ble into shares (pieces) conversion converted converted (Yuan) outstandi
198
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bonds (Yuan) (shares) to total ng
amount of conversi
issued on to
shares of total
the issue
Company amount
prior to
start date of
conversion
Hope
Jul. 9, 2020-
Convert 40,000,00 4,000,000,000. 3,050,324,4 155,122,14 949,675,600.0
January 2, 3.68% 23.74%
ible 0 00 00.00 5 0
2026
bonds
Hope
May 9,
Convert 81,500,00 8,150,000,000. 8,149,298,500
2022-Nov. 701,500.00 48,482 0.00% 99.99%
ible 0 00 .00
1, 2027
Bond 2
3. Details of top 10 convertible bond holders
Unit: shares
Percentage of
Number of Amount of
convertible
Nature of convertible convertible
corporate
Name of convertible corporate bond convertible corporate bonds corporate bonds
No. bonds held at
holder corporate held at the end of held at the end of
the end of
bond holder reporting period reporting period
reporting
(pieces) (Yuan)
period
MERRILL Overseas
1 599,991 59,999,100.00 6.32%
LYNCH INTERNATIONAL legal person
China Life Pension Steady No. 5 Fixed
Income Pension Product - Industrial
2 Others 388,184 38,818,400.00 4.09%
and Commercial Bank of China Co.,
Ltd.
China Construction Bank Co., Ltd. -
China-Europe New Blue Chip Flexible
3 Others 316,714 31,671,400.00 3.33%
Configuration Hybrid Securities
Investment Fund
Fullgoal Fuyi Aggressive Fixed-income
4 Pension Product - Industrial and Others 298,700 29,870,000.00 3.15%
Commercial Bank of China Co., Ltd.
China Minsheng Bank Co., Ltd. - ICBC
5 Credit Suisse Tianyi Bond Securities Others 279,790 27,979,000.00 2.95%
Investment Fund
Northwest Investment Management
Overseas
6 (HK) Co., Ltd. - Northwest Feilong 239,996 23,999,600.00 2.53%
legal person
Fund Co., Ltd.
Overseas
7 BNP Paribas - self-owned fund 220,000 22,000,000.00 2.32%
legal person
Generali China Life Insurance Co., Ltd.
8 Others 201,597 20,159,700.00 2.12%
- dividends - group annuity
Kunlun Health Insurance Co., Ltd. -
9 Others 200,000 20,000,000.00 2.11%
traditional insurance product 1
Domestic
10 Generali China Life Insurance Co., Ltd. non-state- 199,998 19,999,800.00 2.11%
owned legal
199
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person
4. List of top 10 convertible bond holders of Hope Convertible Bond 2
Percentage of
Number of Amount of
convertible
Nature of convertible convertible
corporate
Name of convertible corporate convertible corporate bonds corporate bonds
No. bonds held at
bond holder corporate bond held at the end of held at the end of
the end of
holder reporting period reporting period
reporting
(pieces) (Yuan)
period
Domestic non-
1 New Hope Group Co., Ltd. state-owned legal 15,941,141.00 1,594,114,100.00 19.56%
person
Domestic non-
2 South Hope Industrial Co., Ltd. state-owned legal 14,618,260.00 1,461,826,000.00 17.94%
person
Industrial and Commercial Bank
of China Co., Ltd. - Caitong
3 Others 1,907,642.00 190,764,200.00 2.34%
Value Momentum Hybrid
Securities Investment Fund
Industrial Bank Co., Ltd. -
4 Tianhong Yongli Bond Securities Others 1,880,461.00 188,046,100.00 2.31%
Investment Fund
Industrial and Commercial Bank
of China Co., Ltd. - Tianhong
5 Others 1,632,445.00 163,244,500.00 2.00%
Tianli Bond Securities Investment
Fund (LOF)
Industrial Bank Co., Ltd. -
6 Tianhong Multiple Benefits Bond Others 1,349,413.00 134,941,300.00 1.66%
Securities Investment Fund
Bank of Communications Co.,
Ltd. - Tianhong Hongfeng Return
7 Others 1,316,820.00 131,682,000.00 1.62%
Enhanced Bond Securities
Investment Fund
Bank of Communications Co.,
8 Ltd. - Efund Return Secured Others 1,295,272.00 129,527,200.00 1.59%
Bond Securities Investment Fund
China Construction Bank of
China Co., Ltd. - Huaxia
9 Others 668,251.00 66,825,100.00 0.82%
Convertible Enhanced Bond
Securities Investment Fund
China Post Financial
Management Co., Ltd. - Post
10 Others 638,235.00 63,823,500.00 0.78%
Financial Fortune Hongyun
One-Year No. 7
5. Significant changes in profitability, asset condition and credit standing of guarantors
□applicable not applicable
6. The Company’s liabilities, creditability changes and cash arrangement for debt service in the next five
years at the end of the reporting period
200
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V. Losses within the scope of consolidated statements in excess of 10% of net assets as at the
end of the previous year during 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 end of
Item End of this reporting period End of the previous year this reporting period from the
end of the previous year
Liquidity ratio 0.7172 0.9439 -24.02%
Asset-liability ratio 71.49% 64.98% 6.51%
Quick ratio 0.3028 0.4493 -32.61%
Increase or decrease in this
The same period of the reporting period from the
This reporting period
previous year same period of the previous
year
Profits net of non-recurring
-457,821.22 -180,771.03 -153.26%
profit and loss
EBITDA total debt ratio -2.33% 1.32% -3.65%
Interest coverage ratio -3.44 -2.55 -34.90%
Cash interest coverage ratio -0.78 -4.41 82.31%
EBITDA interest coverage
-1.21 0.76 -259.21%
ratio
Loan repayment rate 100.00% 100.00%
Interest coverage 100.00% 100.00%
201
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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 Yuan.
1. Consolidated balance sheet
Prepared by: New Hope Liuhe Co., Ltd.
Jun. 30, 2022
Unit: Yuan
Item June 30, 2022 January 1, 2022
Current Assets:
Monetary capital 12,273,198,570.83 14,869,080,902.03
Settlement reserve
Loans to other banks
Held-for-trading financial assets 86,905,786.55 20,535,939.74
Derivative financial assets
Notes receivable 85,910,844.56 81,228,463.61
Accounts receivable 1,568,654,007.72 1,075,065,336.98
Receivables financing
Prepayments 2,976,993,320.33 2,138,736,290.23
Insurance premiums receivable
Reinsurance accounts receivable
Provision for cession receivable
Other receivables 769,869,412.03 528,361,615.31
Wherein: interest receivable
Dividends receivable 6,000,000.00 6,000,000.00
Financial assets purchased for resale
Inventories 16,997,518,073.60 15,925,570,801.61
Contract assets
Held-for-sale assets
Non-current assets due in 1 year
Other current assets 260,666,968.18 181,622,639.48
Total Current Assets 35,019,716,983.80 34,820,201,988.99
Non-current Assets:
202
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Loans and advances made
Creditor’s rights investments
Other creditor's rights investment
Long-term receivables
Long-term equity investments 24,900,168,010.09 23,839,747,505.37
Investments in other equity
320,276,827.48 320,276,827.48
instruments
Other non-current financial assets
Investment properties 177,677,301.43 175,580,516.72
Fixed assets 34,510,985,427.99 33,736,477,958.71
Construction in progress 20,884,968,295.81 19,344,065,958.39
Productive biological assets 8,203,829,483.40 8,911,758,423.93
Oil and gas assets
Right-of-use assets 6,359,345,742.25 6,633,017,924.99
Intangible assets 1,857,585,269.40 1,859,242,298.83
Development expenditure
Goodwill 1,209,971,223.09 1,209,971,223.09
invested entitys 201,977,104.40 241,632,331.13
Deferred income tax assets 372,383,975.35 373,127,374.15
Other non-current assets 1,189,832,897.99 1,269,102,008.81
Total Non-current Assets 100,189,001,558.68 97,914,000,351.60
Total Assets 135,208,718,542.48 132,734,202,340.59
Current Liabilities:
Short-term borrowings 19,831,059,413.76 15,159,358,595.63
Borrowings from center bank
Loans from other banks
Held-for-trading financial liabilities 48,621,136.25 6,631,131.02
Derivative financial liabilities
Notes payable 4,320,859,010.16 1,191,121,105.53
Accounts payable 7,381,509,444.97 8,394,718,497.57
Advance receipts
Contract liabilities 2,184,511,867.85 2,169,267,637.22
Financial assets sold for repurchase
Deposits taken and interbank deposits
Proceeds from vicariously traded
securities
Proceeds from vicariously
underwritten securities
Payroll payable 1,155,473,019.93 1,066,132,006.99
Taxes and dues payable 306,751,723.33 327,593,962.84
Other payables 3,573,125,996.08 3,451,273,918.31
Wherein: interest payable
Dividends payable 92,245,738.84 15,456,931.10
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Handling fee and commission payable
Cession insurance premiums payable
Held-for-sale liabilities
Non-current liabilities due in 1 year 9,972,561,094.46 5,066,841,059.68
Other current liabilities 52,414,222.33 56,872,505.55
Total Current Liabilities 48,826,886,929.12 36,889,810,420.34
Non-current Liabilities:
Provision for insurance contracts 185,120,523.89 165,914,982.25
Long-term borrowings 32,462,482,761.69 32,712,427,058.77
Bonds payable 9,914,461,559.43 11,334,700,479.80
Wherein: preferred shares
Perpetual bonds
Lease liabilities 4,785,155,549.05 4,714,341,705.25
Long-term payables
Long-term payroll payable
Estimated liabilities
Deferred income 413,627,373.22 363,219,901.05
Deferred income tax liabilities 76,232,062.65 74,144,015.78
Other non-current liabilities
Total Non-current Liabilities 47,837,079,829.93 49,364,748,142.90
Total liabilities 96,663,966,759.05 86,254,558,563.24
Owner’s Equity:
Share capital 4,505,091,074.00 4,505,211,342.00
Other equity instruments 3,240,397,966.25 5,800,566,605.61
Wherein: preferred shares
Perpetual bonds 1,249,200,000.00 3,809,200,000.00
Capital reserve 10,518,891,447.20 10,344,867,387.87
Minus: treasury stock 1,186,220,656.34 1,189,155,261.99
Other comprehensive income -638,148,241.08 -496,733,080.74
Appropriative reserve
Surplus reserve 3,389,565,826.46 3,390,832,660.13
General risk reserve
Undistributed profits 6,890,430,352.88 11,182,964,166.86
Total owner’s equity attributable to the
26,720,007,769.37 33,538,553,819.74
parent company
Minority interests 11,824,744,014.06 12,941,089,957.61
Total Owner’s Equity 38,544,751,783.43 46,479,643,777.35
Total Liabilities and Owner’s Equity 135,208,718,542.48 132,734,202,340.59
Legal representative: Liu Chang Chief accountant: Chen Xingyao Person in charge of accounting organization: Su Xiaodan
2.Balance sheet of the parent company
Unit: Yuan
Item June 30, 2022 January 1, 2022
Current Assets:
Monetary capital 5,936,144,610.52 10,772,339,386.69
Held-for-trading financial assets
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Derivative financial assets
Notes receivable
Accounts receivable 73,091.94 313,451.28
Receivables financing
Prepayments 25,950,421.63 12,816,550.37
Other receivables 72,192,919,328.85 69,778,229,913.49
Wherein: interest receivable
Dividends receivable 477,722,349.82 477,722,349.82
Inventories 44,710,727.26 39,791,894.68
Contract assets
Held-for-sale assets
Non-current assets due in 1 year
Other current assets 104,922,762.14 51,278,644.73
Total Current Assets 78,304,720,942.34 80,654,769,841.24
Non-current Assets:
Creditor’s rights investments
Other creditor's rights investment
Long-term receivables
Long-term equity investments 14,179,663,214.34 13,732,469,107.77
Investments in other equity
211,196,000.00 211,196,000.00
instruments
Other non-current financial assets
Investment properties
Fixed assets 22,617,102.23 22,393,849.50
Construction in progress 2,721,600.00 2,202,600.00
Productive biological assets
Oil and gas assets
Right-of-use assets 8,548,594.10 4,117,325.90
Intangible assets 4,403,037.43 4,733,536.76
Development expenditure
Goodwill
Long-term unamortized expenses 2,449,336.53 3,089,286.04
Deferred income tax assets 2,631,980.81 1,858,001.07
Other non-current assets 10,889,978.54 9,844,866.71
Total Non-current Assets 14,445,120,843.98 13,991,904,573.75
Total Assets 92,749,841,786.32 94,646,674,414.99
Current Liabilities:
Short-term borrowings 6,489,277,173.46 5,103,603,120.55
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 127,801,054.57 224,825,968.44
Accounts payable 20,970,804.61 21,773,578.58
Advance receipts
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Contract liabilities 20,008,387.61 19,956,963.80
Payroll payable 18,096,195.12 16,695,797.54
Taxes and dues payable 15,309,253.59 13,916,475.50
Other payables 37,653,105,819.13 40,291,179,443.06
Wherein: interest payable
Dividends payable
Held-for-sale liabilities
Non-current liabilities due in 1 year 6,156,607,313.14 1,023,481,457.68
Other current liabilities
Total Current Liabilities 50,501,176,001.23 46,715,432,805.15
Non-current Liabilities:
Long-term borrowings 11,986,718,491.04 11,772,735,435.70
Bonds payable 7,916,117,822.67 11,334,700,479.80
Wherein: preferred shares
Perpetual bonds
Lease liabilities 10,046,540.33 4,251,571.05
Long-term payables
Long-term payroll payable
Estimated liabilities
Deferred income 9,720,490.32 6,041,197.93
Deferred income tax liabilities
Other non-current liabilities
Total Non-current Liabilities 19,922,603,344.36 23,117,728,684.48
Total Liabilities 70,423,779,345.59 69,833,161,489.63
Owner’s Equity:
Share capital 4,505,091,074.00 4,505,211,342.00
Other equity instruments 3,240,397,966.25 5,800,566,605.61
Wherein: preferred shares
Perpetual bonds 1,249,200,000.00 3,809,200,000.00
Capital reserve 11,297,207,700.81 11,298,252,437.61
Minus: treasury stock 1,186,220,656.34 1,189,155,261.99
Other comprehensive income 9,101.71
Appropriative reserve
Surplus reserve 1,147,599,491.62 1,147,599,491.62
Undistributed profits 3,321,977,762.68 3,251,038,310.51
Total Owner’s Equity 22,326,062,440.73 24,813,512,925.36
Total Liabilities and Owner’s Equity 92,749,841,786.32 94,646,674,414.99
3. Consolidated income statement
Unit: Yuan
Item Half year of 2022 Half year of 2021
I. Total business revenue 62,329,531,076.64 61,518,574,560.67
Wherein: business revenue 62,329,531,076.64 61,518,574,560.67
Interest revenue
Earned premiums
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Revenue from handling fee and
commission
II. Total operating costs 66,412,976,672.46 63,157,087,165.54
Wherein: operating cost 62,063,554,174.37 59,181,012,728.29
Interest expenditure
Expenditure on handling fee
and commission
Surrender value
Net indemnities paid
Net provision for insurance
19,205,541.64 14,883,920.78
liabilities accrued
Policy dividend payout
Reinsurance costs
Taxes and surcharges 109,653,394.49 103,141,924.10
Selling expenses 877,736,004.72 886,165,806.70
Management expenses 2,431,811,072.08 2,071,241,942.81
R&D expenses 150,034,607.92 147,076,799.89
Financial expenses 760,981,877.24 753,564,042.97
Wherein: interest expense 755,642,004.97 807,823,061.58
Interest revenue 91,683,189.02 70,004,378.51
Plus: other income 102,592,711.89 107,232,509.12
Investment income (mark “-” for
1,051,106,361.78 1,176,596,066.35
loss)
Wherein: income on
1,026,435,491.87 1,176,426,216.33
investment in affiliates and joint ventures
Income from de-
recognition of financial assets measured
at amortized cost
Exchange gains (mark “-” for
loss)
Income on net exposure hedging
(mark “-” for loss)
Income from change in fair value
-1,254,312.12 -11,086,791.11
(mark “-” for loss)
Credit impairment loss (mark “-”
-64,187,529.66 -77,108,559.38
for loss)
Asset impairment loss (mark “-”
-1,328,087,107.41 -1,002,396,508.13
for loss)
Income from asset disposal (mark
8,121,268.04 22,936,727.98
“-” for loss)
III. Operating profits (mark “-” for loss) -4,315,154,203.30 -1,422,339,160.04
Plus: non-business revenue 50,176,226.42 53,491,540.63
Minus: non-business expenditure 759,373,021.68 1,330,740,961.06
IV. Total profits (mark “-” for total loss) -5,024,350,998.56 -2,699,588,580.47
Minus: income tax expense 140,757,923.12 255,813,436.08
V. Net profits (mark “-” for net loss) -5,165,108,921.68 -2,955,402,016.55
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(I) Classified by business continuity
1. Net profits from continuous
-5,165,108,921.68 -2,955,402,016.55
operations (mark “-” for net loss)
2. Net profits from discontinued
operations (mark “-” for net loss)
(II) Classified by ownership
1. Net profits attributable to the
-4,139,743,764.00 -3,415,066,136.23
owner of the parent company
2. Minority interest income -1,025,365,157.68 459,664,119.68
VI. Other comprehensive income net of
-152,595,487.50 -100,184,166.73
tax
Other comprehensive income net of
tax attributable to the owner of the parent -141,415,160.34 -106,712,174.79
company
(I) Other comprehensive income
that cannot be reclassified to profit or -1,252,770.00 31,319.25
loss
1. Change in defined benefit plan
re-measured
2. Other comprehensive income
that cannot be converted to profit or loss -1,252,770.00 31,319.25
under the equity method
3. Change in fair value of
investments in other equity instruments
4. Change in fair value of credit
risk to the Company
5. Other
(II) Other comprehensive income to
-140,162,390.34 -106,743,494.04
be reclassified into profit or loss
1. Other comprehensive income
that can be converted to profit or loss -33,532,550.92 19,793,766.00
under the equity method
2. Change in the fair value of
other creditor's rights investments
3. Amount of financial assets
reclassified into other comprehensive
income
4. Provisions for credit
impairment of other creditor’s rights
investments
5. Cash flow hedging reserve
6. Translation difference of
-106,629,839.42 -126,537,260.04
foreign currency financial statements
7. Other
Other comprehensive income net of
-11,180,327.16 6,528,008.06
tax attributable to minority shareholders
VII. Total comprehensive income -5,317,704,409.18 -3,055,586,183.28
Total comprehensive income
attributable to the owner of the parent -4,281,158,924.34 -3,521,778,311.02
company
Total comprehensive income
-1,036,545,484.84 466,192,127.74
attributable to minority shareholders
VIII. Earnings per share:
(I) Basic earnings per share -0.93 -0.79
(II) Diluted earnings per share -0.93 -0.78
In case of business combination under the common control during this period, the net profits reported by the combined party
before consolidation was: 0.00 Yuan, and the net profits reported by the combined party in the previous period was: 0.00 Yuan.
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Legal representative: Liu Chang Chief accountant: Chen Xingyao Person in charge of accounting organization: Su Xiaodan
4. Income statement of the parent company
Unit: Yuan
Item Half year of 2022 Half year of 2021
I. Operating revenue 382,749,474.93 497,555,575.60
Minus: operating cost 352,875,726.01 453,734,521.08
Taxes and surcharges 1,689,177.94 2,125,933.08
Selling expenses 5,503,249.96 6,737,541.98
Management expenses 81,111,652.36 82,701,580.63
R&D expenses 7,184,446.87 8,229,789.43
Financial expenses 235,575,650.85 192,794,718.90
Wherein: interest expense 707,112,143.55 433,399,916.22
Interest revenue 500,501,290.30 240,305,921.72
Plus: other income 3,834,799.37 610,204.71
Investment income (mark “-” for
523,558,425.65 839,138,169.59
loss)
Wherein: income on
5,185,004.86 12,876,319.94
investment in affiliates and joint ventures
Income from de-
recognition of financial assets measured
at amortized cost (mark “-” for loss)
Income on net exposure hedging
(mark “-” for loss)
Income from change in fair value
(mark “-” for loss)
Credit impairment loss (mark “-”
-3,208,766.60 -9,443,841.52
for loss)
Asset impairment loss (mark “-”
for loss)
Income from asset disposal (mark
727.78 93.39
“-” for loss)
II. Operating profits (mark “-” for loss) 222,994,757.14 581,536,116.67
Plus: non-business revenue 1,343,502.68 2,409,139.47
Minus: non-business expenditure 115,903.74 28,788.07
III. Total profits (mark “-” for total loss) 224,222,356.08 583,916,468.07
Minus: income tax expense -773,979.74 -481,808.50
IV. Net profits (mark “-” for net loss) 224,996,335.82 584,398,276.57
(I) Net profits from continuous
224,996,335.82 584,398,276.57
operations (mark “-” for net loss)
(II) Net profits from discontinued
operations (mark “-” for net loss)
V. Other comprehensive income net of
9,101.71
tax
(I) Other comprehensive income
that cannot be reclassified to profit or
loss
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1. Change in defined benefit plan
re-measured
2. Other comprehensive income
that cannot be converted to profit or loss
under the equity method
3. Change in fair value of
investments in other equity instruments
4. Change in fair value of credit
risk to the Company
5. Other
(II) Other comprehensive income to
9,101.71
be reclassified into profit or loss
1. Other comprehensive income
that can be converted to profit or loss 9,101.71
under the equity method
2. Change in the fair value of
other creditor's rights investments
3. Amount of financial assets
reclassified into other comprehensive
income
4. Provisions for credit
impairment of other creditor’s rights
investments
5. Cash flow hedging reserve
6. Translation difference of
foreign currency financial statements
7. Other
VI. Total comprehensive income 225,005,437.53 584,398,276.57
VII. Earnings per share:
(I) Basic earnings per share
(II) Diluted earnings per share
5. Consolidated cash flow statement
Unit: Yuan
Item Half year of 2022 Half year of 2021
I. Cash flows from operating activities:
Cash received from goods sale and
63,319,404,447.54 61,888,098,037.93
service provision
Net increase in customer’s deposits
and interbank deposits
Net increase in borrowings from
center bank
Net increase in borrowings from other
financial institutions
Cash received from premium of
original insurance contract
Net amount of cash from reinsurance
business
Net increase in policyholder’s deposits
and investments
Cash received as interest, handling fee
or commission
Net increase in borrowing funds
Net increase in funds for repurchase
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Net amount of cash from vicariously
traded securities
Tax rebates received 100,145,743.17 32,105,332.50
Other cash received in connection with
610,052,611.47 617,898,250.98
operating activities
Subtotal of cash inflows from operating
64,029,602,802.18 62,538,101,621.41
activities
Cash used to pay for goods or services 57,644,988,338.96 60,182,030,270.74
Net increase in customer’s loans and
advances
Net increase in deposits with central
bank and interbank deposits
Cash paid as premium of original
insurance contract
Net increase in lending funds
Cash paid as interest, handling fee or
commission
Cash paid as policyholder’s dividends
Cash paid to and for employees 4,353,947,931.46 4,883,177,881.13
Taxes and fees paid 427,804,711.40 450,248,536.66
Other cash paid in connection with
2,736,388,974.82 1,619,251,618.62
operating activities
Subtotal of cash outflows from operating
65,163,129,956.64 67,134,708,307.15
activities
Net cash flows from operating activities -1,133,527,154.46 -4,596,606,685.74
II. Cash flows from investing activities:
Cash received from recovery of
23,139,619.03 30,753,951.98
investments
Cash received from investment
734,593,880.06 396,108,100.45
income
Net cash recovered from disposal of
fixed assets, intangible assets and other 125,555,069.31 108,644,341.05
long-term assets
Net cash received from disposal of
5,680,493.78
subsidiaries and other business units
Other cash received in connection with
108,562,993.32 10,983,654.00
investing activities
Subtotal of cash inflows from investing
991,851,561.72 552,170,541.26
activities
Cash paid for purchase and
construction of fixed assets, intangible 4,261,927,323.66 10,378,327,709.81
assets and other long-term assets
Cash paid for investment 831,069,480.47 147,993,299.49
Net increase in pledge loan
Net cash paid for acquisition of
42,443,203.19 416,224,153.56
subsidiaries and other business units
Other cash disbursements related to
122,582,506.09 68,975,593.13
investing activities
Subtotal of cash outflows from investing
5,258,022,513.41 11,011,520,755.99
activities
Net cash flows from investing activities -4,266,170,951.69 -10,459,350,214.73
III. Cash flows from financing activities
Cash received from acquisition of
711,100,000.00 1,914,190,000.00
investments
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Wherein: cash received from
acquisition of minority shareholder 511,100,000.00 154,990,000.00
investments in subsidiaries
Cash received from borrowings 23,498,541,659.58 34,681,300,861.29
Other cash received in connection with
63,437,014.98 1,997,600,000.00
financing activities
Subtotal of cash inflows from financing
24,273,078,674.56 38,593,090,861.29
activities
Cash paid for debt repayment 17,330,261,422.26 17,314,234,618.74
Cash paid for distribution of dividends
1,715,829,067.42 1,213,233,167.43
and profits or payment of interest
Wherein: dividends and profits paid by
355,061,728.94 165,388,299.18
subsidiaries to minority shareholders
Other cash paid in connection with
3,378,838,383.77 2,149,205,742.40
financing activities
Subtotal of cash outflows from financing
22,424,928,873.45 20,676,673,528.57
activities
Net cash flows from financing activities 1,848,149,801.11 17,916,417,332.72
IV. Effect of exchange rate fluctuation
-48,923,563.06 -20,848,279.59
on cash and cash equivalents
V. Net increase in cash and cash
-3,600,471,868.10 2,839,612,152.66
equivalents
Plus: beginning balance of cash and
14,292,784,234.11 8,509,218,898.56
cash equivalents
VI. Ending balance of cash and cash
10,692,312,366.01 11,348,831,051.22
equivalents
6. Cash flow statement of the parent company
Unit: Yuan
Item Half year of 2022 Half year of 2021
I. Cash flows from operating activities:
Cash received from goods sale and
396,924,522.81 489,496,853.93
service provision
Tax rebates received
Other cash received in relation to
353,138,040.26 867,037,628.15
operating activities
Subtotal of cash inflows from operating
750,062,563.07 1,356,534,482.08
activities
Cash used to pay for goods or services 413,691,514.31 412,062,158.35
Cash paid to and for employees 61,395,797.67 69,359,294.43
Taxes and fees paid 7,002,021.11 8,803,751.56
Other cash paid in connection with
232,746,500.08 673,507,381.42
operating activities
Subtotal of cash outflows from operating
714,835,833.17 1,163,732,585.76
activities
Net cash flows from operating activities 35,226,729.90 192,801,896.32
II. Cash flows from investing activities:
Cash received from recovery of
investments
Cash received from investment
697,714,258.99 354,115,607.06
income
Net cash recovered from disposal of
fixed assets, intangible assets and other 10,725.26 7,175.75
long-term assets
Net cash received from disposal of
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subsidiaries and other business units
Other cash received in connection with
investing activities
Subtotal of cash inflows from investing
697,724,984.25 354,122,782.81
activities
Cash paid for purchase and
construction of fixed assets, intangible 3,758,738.86 4,923,795.56
assets and other long-term assets
Cash paid for investment 680,000,000.00
Net cash paid for acquisition of
399,042,752.09
subsidiaries and other business units
Other cash disbursements related to
5,450,928,565.45 6,281,771,104.20
investing activities
Subtotal of cash outflows from investing
6,134,687,304.31 6,685,737,651.85
activities
Net cash flows from investing activities -5,436,962,320.06 -6,331,614,869.04
III. Cash flows from financing activities
Cash received from acquisition of
200,000,000.00 1,759,200,000.00
investments
Cash received from borrowings 8,381,409,968.23 12,921,529,999.39
Other cash received in connection with
1,997,600,000.00
financing activities
Subtotal of cash inflows from financing
8,581,409,968.23 16,678,329,999.39
activities
Cash paid for debt repayment 5,885,728,299.39 5,856,135,188.84
Cash paid for distribution of dividends
381,696,121.16 396,102,438.39
and profits or payment of interest
Other cash paid in connection with
1,343,795,708.57 1,665,272,488.74
financing activities
Subtotal of cash outflows from financing
7,611,220,129.12 7,917,510,115.97
activities
Net cash flows from financing activities 970,189,839.11 8,760,819,883.42
IV. Effect of exchange rate fluctuation
124,180.42 -944,999.70
on cash and cash equivalents
V. Net increase in cash and cash
-4,431,421,570.63 2,621,061,911.00
equivalents
Plus: beginning balance of cash and
10,772,339,386.69 5,123,092,679.56
cash equivalents
VI. Ending balance of cash and cash
6,340,917,816.06 7,744,154,590.56
equivalents
7. Consolidated statement of changes in equity
Current amount
Unit: Yuan
Half year of 2022
Owner’s equity attributable to the parent company
Tota
Other equity Oth
Min App Und l
instruments er Gen Min
Item Shar Capi us: ropr Surp istri Ow
Pref Perp com eral ority
e tal treas iativ lus bute Oth Subt inter ner’
erre etua preh risk s
capi Oth rese ury e rese d ers otal ests
d l ensi rese Equi
tal ers rve stoc rese rve prof
shar bon ve rve ty
k rve its
es ds inco
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me
10,3 - 11,1 33,5 12,9 46,4
I. Ending 4,50 3,80 1,99 1,18 3,39
44,8 496, 82,9 38,5 41,0 79,6
balance of 5,21 9,20 1,36 9,15 0,83
67,3 733, 64,1 53,8 89,9 43,7
the previous 1,34 0,00 6,60 5,26 2,66
87.8 080. 66.8 19.7 57.6 77.3
year 2.00 0.00 5.61 1.99 0.13
7 74 6 4 1 5
Plus:
changes in
accounting
policies
Co
rrection of
prior error
Bu
siness
combination
under
common
control
Ot
hers
II. 10,3 - 11,1 33,5 12,9 46,4
4,50 3,80 1,99 1,18 3,39
Beginning 44,8 496, 82,9 38,5 41,0 79,6
5,21 9,20 1,36 9,15 0,83
balance of 67,3 733, 64,1 53,8 89,9 43,7
1,34 0,00 6,60 5,26 2,66
the current 87.8 080. 66.8 19.7 57.6 77.3
2.00 0.00 5.61 1.99 0.13
year 7 74 6 4 1 5
III. Increase
- - - - - -
or decrease - - 174, - -
2,56 141, 4,29 6,81 1,11 7,93
in the current 120, 168, 024, 2,93 1,26
0,00 415, 2,53 8,54 6,34 4,89
period (mark 268. 639. 059. 4,60 6,83
0,00 160. 3,81 6,05 5,94 1,99
“-” for 00 36 33 5.65 3.67
0.00 34 3.98 0.37 3.55 3.92
decrease)
- - - - -
(I) Total 141, 4,13 4,28 1,03 5,31
comprehensi 415, 9,74 1,15 6,54 7,70
ve income 160. 3,76 8,92 5,48 4,40
34 4.00 4.34 4.84 9.18
- - -
(II) Capital - - 162, - - 348,
2,56 1,26 2,39 2,04
invested or 120, 168, 248, 2,93 1,26 863,
0,00 6,83 5,10 6,24
reduced by 268. 639. 070. 4,60 6,83 633.
0,00 3.67 6,23 2,59
owners 00 36 14 5.65 3.67 14
0.00 1.57 8.43
1. Ordinary 167, 167, 336, 503,
shares 899, 899, 000, 900,
0.00 0.00
invested by 271. 271. 728. 000.
owners 07 07 93 00
2. Capital
- - -
contribution - -
48,4 2,56 682, 2,55 2,55
from other 168, 52,7
82.0 0,00 126. 9,38 9,38
equity 639. 19.3
0 0,00 08 5,31 5,31
instrument 36 1
0.00 1.97 1.97
holders
- - - 986, 986,
3. Amount of
168, 1,72 2,88 273. 273.
share-based
750. 6,86 1,88 46 46
214
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payment 00 2.88 6.34
included in
owner's
equity
- - - 12,8
1,26 8,25
4,60 1,26 4,60 62,9
4. Others 6,83 6,44
6,46 6,83 6,46 04.2
3.67 0.08
4.13 3.67 4.13 1
- - - -
154, 154, 431, 585,
(III) Profit
056, 056, 850, 907,
distribution
883. 883. 536. 420.
65 65 68 33
1.
Appropriatio
n of surplus
reserve
2.
Appropriatio
n of general
risk reserve
- -
3.
431, 431,
Distribution
850, 850,
to owners (or
536. 536.
shareholders)
68 68
- - -
154, 154, 154,
4. Others 056, 056, 056,
883. 883. 883.
65 65 65
(IV) Internal
carryover of
owner’s
equity
1. Capital
reserve
converted
into capital
(or share
capital)
2. Surplus
reserve
converted
into capital
(or share
capital)
3. Loss
covered by
surplus
reserve
4. Change in
defined
benefit plan
carried
215
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forward to
retained
earnings
5. Other
comprehensi
ve income
carried
forward to
retained
earnings
6. Others
(V)
Appropriativ
e reserve
1.
Appropriatio
n in the
current
period
2.
Application
in the current
period
11,7 11,7 14,9
3,18
75,9 75,9 62,4
(VI) Others 6,44
89.1 89.1 34.0
4.83
9 9 2
10,5 - 26,7 11,8 38,5
IV. Ending 4,50 1,24 1,99 1,18 3,38 6,89
18,8 638, 20,0 24,7 44,7
balance of 5,09 9,20 1,19 6,22 9,56 0,43
91,4 148, 07,7 44,0 51,7
current 1,07 0,00 7,96 0,65 5,82 0,35
47.2 241. 69.3 14.0 83.4
period 4.00 0.00 6.25 6.34 6.46 2.88
0 08 7 6 3
Amount of last year
Unit: Yuan
Half year of 2021
Owner’s equity attributable to the parent company
Other equity Oth Tota
instruments Min er App Und l
Gen Min
Item Shar Capi us: com ropr Surp istri Ow
Pref Perp eral ority
e tal treas preh iativ lus bute Oth Subt ner’
erre etua risk inter
capi Oth rese ury ensi e rese d ers otal s
d l rese ests
tal ers rve stoc ve rese rve prof Equi
shar bon rve ty
k inco rve its
es ds me
- 21,2 39,8 11,5 51,3
I. Ending 4,50 1,80 191, 9,75 370, 3,09
343, 18,8 46,3 24,6 70,9
balance of 5,80 0,00 904, 0,90 970, 3,73
891, 46,3 34,1 17,8 52,0
the previous 0,98 0,00 960. 8,62 103. 5,14
820. 53.4 35.6 64.5 00.2
year 1.00 0.00 44 4.64 39 0.45
87 1 8 6 4
Plus:
changes in
accounting
policies
216
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Co
rrection of
prior error
Bu
siness
combination
under
common
control
Ot
hers
II. - 21,2 39,8 11,5 51,3
4,50 1,80 191, 9,75 370, 3,09
Beginning 343, 18,8 46,3 24,6 70,9
5,80 0,00 904, 0,90 970, 3,73
balance of 891, 46,3 34,1 17,8 52,0
0,98 0,00 960. 8,62 103. 5,14
the current 820. 53.4 35.6 64.5 00.2
1.00 0.00 44 4.64 39 0.45
year 87 1 8 6 4
III. Increase
- - - -
or decrease - 1,75 - 834, - 353,
5,34 106, 3,47 2,65 2,29
in the current 589, 9,20 43,9 363, 219, 248,
2,36 712, 3,83 1,22 7,97
period (mark 639. 0,00 24.4 496. 648. 962.
9.83 174. 9,50 6,01 7,05
“-” for 00 0.00 4 27 76 95
79 2.90 6.33 3.38
decrease)
- - - -
466,
(I) Total 106, 3,41 3,52 3,05
192,
comprehensi 712, 5,06 1,77 5,58
127.
ve income 174. 6,13 8,31 6,18
74
79 6.23 1.02 3.28
(II) Capital - 1,75 - 834, 932, 88,7 1,02
8,10
invested or 589, 9,20 43,9 363, 305, 09,8 1,01
2,63
reduced by 639. 0,00 24.4 496. 577. 30.6 5,40
6.86
owners 00 0.00 4 27 15 0 7.75
- -
1. Ordinary 834, 122,
834, 711,
shares 549, 688,
549, 861,
invested by 312. 259.
312. 053.
owners 60 47
60 13
2. Capital
contribution 1,75 - - 1,75 1,75
35,0
from other 9,20 43,9 185, 9,37 9,37
49.8
equity 0,00 24.4 816. 6,94 6,94
3
instrument 0.00 4 33 1.72 1.72
holders
3. Amount of
share-based -
4,95 4,36 4,36
payment 589,
1,66 2,02 2,02
included in 639.
5.06 6.06 6.06
owner's 00
equity
- -
3,11 3,11 33,9 30,8
4. Others 5,92 5,92 78,4 62,5
1.97 1.97 28.8 06.9
7 0
- - - - -
(III) Profit
219, 58,7 58,9 201, 260,
217
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distribution 648. 73,3 93,0 230, 223,
76 66.6 15.4 837. 852.
7 3 13 56
1.
Appropriatio
n of surplus
reserve
2.
Appropriatio
n of general
risk reserve
- -
3.
165, 165,
Distribution
480, 480,
to owners (or
420. 420.
shareholders)
45 45
- - - -
-
58,7 58,9 35,7 94,7
219,
4. Others 73,3 93,0 50,4 43,4
648.
66.6 15.4 16.6 32.1
76
7 3 8 1
(IV) Internal
carryover of
owner’s
equity
1. Capital
reserve
converted
into capital
(or share
capital)
2. Surplus
reserve
converted
into capital
(or share
capital)
3. Loss
covered by
surplus
reserve
4. Change in
defined
benefit plan
carried
forward to
retained
earnings
5. Other
comprehensi
ve income
carried
forward to
retained
earnings
218
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6. Others
(V)
Appropriativ
e reserve
1.
Appropriatio
n in the
current
period
2.
Application
in the current
period
- - - -
2,76 2,76 422, 3,18
(VI) Others
0,26 0,26 158. 2,42
7.03 7.03 26 5.29
- 17,7 37,1 11,8 49,0
IV. Ending 4,50 3,55 191, 9,75 1,20 3,09
450, 45,0 95,1 77,8 72,9
balance of 5,21 9,20 861, 6,25 5,33 3,51
603, 06,8 08,1 66,8 74,9
current 1,34 0,00 036. 0,99 3,59 5,49
995. 50.5 19.3 27.5 46.8
period 2.00 0.00 00 4.47 9.66 1.69
66 1 5 1 6
8. Statement of changes in equity of the parent company
Current amount
Unit: Yuan
Half year of 2022
Other equity instruments Other
Minus Appro
Capita compr Surplu Undist Total
Item : priativ
Share Prefer Perpet l ehensi s ribute Owne
treasu e Others
capital red ual Others reserv ve reserv d r’s
ry reserv
shares bonds e incom e profits Equity
stock e
e
I. Ending 11,29 24,81
4,505, 3,809, 1,991, 1,189, 1,147, 3,251,
balance of 8,252, 3,512,
211,3 200,0 366,6 155,2 599,4 038,3
the previous 437.6 925.3
42.00 00.00 05.61 61.99 91.62 10.51
year 1 6
Plus:
changes in
accounting
policies
Co
rrection of
prior error
Ot
hers
II.
11,29 24,81
Beginning 4,505, 3,809, 1,991, 1,189, 1,147, 3,251,
8,252, 3,512,
balance of 211,3 200,0 366,6 155,2 599,4 038,3
437.6 925.3
the current 42.00 00.00 05.61 61.99 91.62 10.51
1 6
year
219
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III. Increase
or decrease - - - -
- - 70,93
in the current 2,560, 1,044, 2,934, 9,101. 2,487,
120,2 168,6 9,452.
period (mark 000,0 736.8 605.6 71 450,4
68.00 39.36 17
“-” for 00.00 0 5 84.63
decrease)
(I) Total 224,9 225,0
9,101.
comprehensi 96,33 05,43
71
ve income 5.82 7.53
(II) Capital - - - -
- -
invested or 2,560, 1,044, 2,934, 2,558,
120,2 168,6
reduced by 000,0 736.8 605.6 399,0
68.00 39.36
owners 00.00 0 5 38.51
1. Ordinary
shares
0.00 0.00
invested by
owners
2. Capital
contribution - -
- -
from other 48,48 2,560, 682,1 2,559,
168,6 52,71
equity 2.00 000,0 26.08 385,31
39.36 9.31
instrument 00.00 1.97
holders
3. Amount of
share-based - -
-
payment 1,726, 2,881, 986,2
168,7
included in 862.8 886.3 73.46
50.00
owner's 8 4
equity
4. Others
- -
(III) Profit 154,0 154,0
distribution 56,88 56,88
3.65 3.65
1.
Appropriatio
n of surplus
reserve
2.
Distribution
to owners (or
shareholders)
- -
154,0 154,0
3. Others
56,88 56,88
3.65 3.65
(IV) Internal
carryover of
owner’s
equity
1. Capital
reserve
converted
into capital
220
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(or share
capital)
2. Surplus
reserve
converted
into capital
(or share
capital)
3. Loss
covered by
surplus
reserve
4. Change in
defined
benefit plan
carried
forward to
retained
earnings
5. Other
comprehensi
ve income
carried
forward to
retained
earnings
6. Others
(V)
Appropriativ
e reserve
1.
Appropriatio
n in the
current
period
2.
Application
in the current
period
(VI) Others
IV. Ending 11,29 22,32
4,505, 1,249, 1,991, 1,186, 1,147, 3,321,
balance of 7,207, 9,101. 6,062,
091,0 200,0 197,9 220,6 599,4 977,7
current 700.8 71 440.7
74.00 00.00 66.25 56.34 91.62 62.68
period 1 3
Amount of last year
Unit: Yuan
Half year of 2021
Other equity instruments Minus Other Appro
Capita Surplu Undist Total
Item : compr priativ
Share Prefer Perpet l s ribute Owne
treasu ehensi e Others
capital red ual Others reserv reserv d r’s
ry ve reserv
shares bonds e e profits Equity
stock incom e
221
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e
I. Ending 11,29 20,99
4,505, 1,800, 191,9 370,9 1,050, 2,527,
balance of 0,480, 5,454,
800,9 000,0 04,96 70,10 790,0 447,9
the previous 329.8 152.2
81.00 00.00 0.44 3.39 16.75 67.54
year 7 1
Plus:
changes in
accounting
policies
Co
rrection of
prior error
Ot
hers
II.
11,29 20,99
Beginning 4,505, 1,800, 191,9 370,9 1,050, 2,527,
0,480, 5,454,
balance of 800,9 000,0 04,96 70,10 790,0 447,9
329.8 152.2
the current 81.00 00.00 0.44 3.39 16.75 67.54
7 1
year
III. Increase
or decrease
- 1,759, - 4,986, 834,3 525,6 1,454,
in the current
589,6 200,0 43,92 714.8 63,49 24,90 814,5
period (mark
39.00 00.00 4.44 9 6.27 9.90 65.08
“-” for
decrease)
(I) Total 584,3 584,3
comprehensi 98,27 98,27
ve income 6.57 6.57
(II) Capital
- 1,759, - 4,986, 834,3 929,1
invested or
589,6 200,0 43,92 714.8 63,49 89,65
reduced by
39.00 00.00 4.44 9 6.27 5.18
owners
1. Ordinary -
834,5
shares 834,5
49,31
invested by 49,31
2.60
owners 2.60
2. Capital
contribution
1,759, - - 1,759,
from other 35,04
200,0 43,92 185,8 376,9
equity 9.83
00.00 4.44 16.33 41.72
instrument
holders
3. Amount of
share-based
- 4,951, 4,362,
payment
589,6 665.0 026.0
included in
39.00 6 6
owner's
equity
4. Others
- -
(III) Profit 58,77 58,77
distribution 3,366. 3,366.
67 67
222
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1.
Appropriatio
n of surplus
reserve
2.
Distribution
to owners (or
shareholders)
- -
58,77 58,77
3. Others
3,366. 3,366.
67 67
(IV) Internal
carryover of
owner’s
equity
1. Capital
reserve
converted
into capital
(or share
capital)
2. Surplus
reserve
converted
into capital
(or share
capital)
3. Loss
covered by
surplus
reserve
4. Change in
defined
benefit plan
carried
forward to
retained
earnings
5. Other
comprehensi
ve income
carried
forward to
retained
earnings
6. Others
(V)
Appropriativ
e reserve
1.
Appropriatio
n in the
current
223
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period
2.
Application
in the current
period
(VI) Others
IV. Ending 11,29 22,45
4,505, 3,559, 191,8 1,205, 1,050, 3,053,
balance of 5,467, 0,268,
211,3 200,0 61,03 333,5 790,0 072,8
current 044.7 717.2
42.00 00.00 6.00 99.66 16.75 77.44
period 6 9
III. Company profile
(I) Development 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 in
C.F.H.(1997)No.260 Document after overall change to the former Mianyang Hope Feed Co., Ltd., with a registered capital of
140,020,000.00 Yuan. Respectively 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, after 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, 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 resolutions of the Company’s extraordinary general meeting held on September 4, 2013 and approval of
CSRC in the Reply on Approval of the Non-public Issuing of Stock by New Hope Liuhe Co., Ltd. (CSRC Approval [2014] No.
565), the Company issued privately 354,609,927 shares to five particular shareholders including South Hope Industrial Co., Ltd.,
against capital contributions made by each shareholder in cash. The private placement was completed on August 26, 2 014. 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 share, with related
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 extraordinary general meeting held on June 29, 2016 and approval of
CSRC (CSRC Approval [2016] No. 3187), the Company changed the total share capital to 4,216,015,009 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 approval of CSRC in the Reply on Approva l
of Public Issuing of Convertible Corporate Bonds by New Hope Liuhe Co., Ltd. (CSRC Approval [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 amount
of 4.0 billion Yuan. The convertible bonds are in existence from January 3, 2020 to January 2, 2026 and convertible from July 9,
2020 to January 2, 2026. In 2020, the share capital was increased by 111,119,860 shares by conversion of convertible bonds into
shares.
According to the resolutions of the first extraordinary general meeting of the Company in 2019 held on June 6, 2019, the
Proposal regarding 2019 Restricted Stock and Stock Option Incentive Plan (Draft) and its Summary of New Hope Liuhe Co., Ltd.
was passed, whereby the Company completed grant of 3.60 million shares of restricted stock to 24 incentive objects and
registration of 8.40 million stock options on July 29, 2019, increasing its share capital by 2,166,055 shares due to exercise of stock
224
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options as of June 30, 2022. According to the resolutions of the first extraordinary general meeting in 2020, the first extraordinary
general meeting in 2021 and the first extraordinary general meeting in 2022 of the Company, the Proposal to Cancel Some Stock
Options and Repurchase Some Restricted Stocks for Cancellation was approved, and the Company repurchased 1,406,250 shares
of restricted stocks for cancellation as of June 30, 2022.
According to the resolutions of the Company’s 2019 annual general meeting and approval of CSRC in the Reply on Approva l
of the Non-public Offering of Stocks by New Hope Liuhe Co., Ltd. (CSRC Approval [2020] No.1961), the Company privately
placed 177,147,918 RMB ordinary shares to two particular shareholders, namely, South Hope Industrial Co. , Ltd. and New Hope
Group Co., Ltd., against capital contributions by each shareholder in cash. The private placement was completed on September 18,
2020.
According to the resolutions of the second extraordinary general meeting in 2020 held on November 18 , 2020 and approval of
CSRC in the Reply on Approval of Public Issuing of Convertible Corporate Bonds by New Hope Liuhe Co., Ltd. (CSRC Approva l
[2021] No. 1351), the Company publicly issued 81.5 million convertible corporate bonds each having a par value of 100 Yuan on
November 2, 2021, for a total amount of 8.15 billion Yuan. The convertible bonds are in existence from November 2, 2021 to
November 1, 2027 and convertible from May 9, 2022 to November 1, 2027. In the first half of 2022, the share capital was
increased by 48,482 shares due to conversion of convertible bonds into shares.
In the first half of 2022, the Company increased its share capital by 48,482 shares due to the conversion of convertible bonds
into shares, and decreased its share capital by 168,750 shares due to the repurchase and cancellation of restricted stock, with its
total share capital changed to 4,505,091,074 shares.
As of June 30, 2022, the total share capital of the Company was 4,505,091,074 shares, including 181,529,216 outstanding
shares with restricted sales conditions and 4,323,561,858 outstanding shares with no restrictions on sales.
(II) Business situation
After years of development, by the end of June 2022, the Company has successively established 773 directly or indirectly
controlled subsidiaries, 15 affiliates and 9 joint ventures in 30 Chinese provinces, municipalities, autonomous regions and s pecia l
administrative regions (including Sichuan, Yunnan, Guizhou, Beijing, Shanghai, Chongqing, Guangdong, Hainan, Hebei, Henan,
Shandong, Shanxi, Jiangsu, Anhui, Zhejiang, Jiangxi, Hubei, Hunan, Shaanxi, Liaoning, Jilin, Heilongjiang, Gansu, Inner
Mongolia, Tibet, Guangxi, Ningxia, Tianjin, Hong Kong, Fujian) and 15 foreign countries (including: Vietnam, Cambodia, the
Philippines, Bangladesh, Indonesia, Sri Lanka, Singapore, Myanmar, Laos, Nepal, Egypt, Turkey, South Africa, India, Nigeria)
through investment and incorporation and M&As, thus becoming an industry conglomerate with feed, farming, slaughtering and
meat products as its core competitiveness.
(III) Address, business scope and other information of the Company
The Company’s business license registration number is 91510000709151981F; legal representative is Liu Chang; registered
address is National High-tech Industry Development Zone, Mianyang, Sichuan; and headquarters’ address is No. 376, Jinshi Road,
Jinjiang Industrial Park, Chengdu, Sichuan.
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 virtue of license or approval document): planting of cereals and other
crops; raising of livestock; ra ising of pigs; poultry raising; wholesale and retail sale of goods; import and export business; project
investment and management; scientific and technological exchange and promotion services.
(IV) Main products of the Company
The Company's main products of its feed business include pig feed, poultry feed, fish feed, etc.; the main products of its
swine business include breeding pigs and commercial pigs; the main products of its poultry business include breeding poultry,
commercial poultry, poultry slaughter, etc.; its food products mainly include livestock slaughter, deep processing of meat products,
central kitchen, etc.
225
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(V) Financial report approval date
The semiannual financial statements 2022 of the Company were approved by the board of directors on August 29, 2022.
(VI) Scope of consolidated financial statements
As of June 30, 2021, the Company included 773 subsidiaries in the scope of its consolidated financial statements; compared
with the previous year, 3 new subsidiaries were added in the scope of consolidated financial statements this year, and 15
subsidiaries were no longer included in the scope of consolidation this year. For details, please refer to the relevant contents of
“Note VIII. Changes in the scope of consolidation” and “Note IX. Interests in other entities”.
IV. Preparation basis of the financial statements
1. Preparation basis
The semiannual financial statements 2022 of the Company have been prepared on a going concern basis, based on the accrual
system and actual transactions and events, in accordance with the Accounting Standards for Business Enterprises–Basic Principles
and specific accounting standards, Guidelines for Application of the Accounting Standards for Business Enterprises,
interpretations of the Accounting Standards for Business Enterprises and other relevant rules (hereinafter collectively referred to as
“ASBE”) of the Ministry of Finance, as well as the disclosure rules set forth in the Rules for the Preparation of Information
Disclosure by Companies Offering Securities to the Public No. 15–General Provisions for Financial Reporting issued by CSRC.
2. Going concern
These financial statements have been prepared on a going concern basis. The Company has the ability to continue operations
for at least 12 months after the end of the reporting period, and there are no major events that affect its ability as a going concern.
V. Significant 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 as sets,
depreciation of fixed assets, revenue recognition and other transactions and events, as detailed in this Note V “(10) Financia l
instruments, (11) Inventories, (17) Fixed assets, (20) Biological assets, (21) Right-of-use 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.(38) Important accounting judgments and estimates”.
1. Statement on compliance with ASBE
The semiannual financial statements 2022 of the Company comply with the requirements of the Accounting Standards for
Business Enterprises, and give a true and complete view of the financial status as of June 30, 2022 and the business results and
cash flow of the Company in the first half of 2022. 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 the Rules for the Preparation of
Information Disclosure by Companies Offering Securities to the Public No. 15–General Provisions for Financial Reporting issued
by CSRC.
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2. Accounting period
The accounting period of the Company is divided into annual and interim periods; 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.
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. Functional currency
The Company and its domestic subsidiaries use RMB as accounting currency; its overseas subsidiaries use currencies in the
primary 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 for business combination under common control and not under common control
(1) Business combination 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 capita l
reserve is insufficient for offsetting. The combination date is the date when the combin ing party actually acquires the control of the
combined party.
(2) Business combination 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 purcha se date),
liabilities incurred or assumed and fair value of equity securities issued at the purchase date minus the share of identifiable net
assets of the acquired party at the purchase date that are acquired in combination is recognized as goodwill if positive or c harged 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
subsequently 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 retained earnings at the purchase date.
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(3) Treatment of related transaction costs in business combination
The audit, legal service, appraisal consulting and other intermediary fees and other related management expenses inc urred 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.
6. Method for preparation of consolidated financial statements
(1) General principles
The scope of consolidation of consolidated financial statements is determined based on control, includ ing the Company and
subsidiaries controlled by the Company. Control means the Company has the power over the invested entity to enjoy variable
return by participating in the related activities of the invested entity and has the ability to exert its power over the invested entity 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 tota l
comprehensive 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 s till
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 ac counts
and unrealized profit and loss on internal transactions within the scope of consolidation have been offset when preparing the
consolidated financial statements.
(2) Acquisition of subsidiaries by combination
For a subsidiary acquired through business combination under common control, when preparing the consolidated current
financial 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 de termined 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 equities and the fair
value of remaining equities minus the share of the net assets continuously calculated by the existing subsidiary from the date of
purchase 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 charged 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.
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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 looked at individually, but is economical if considered together with other
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 equity 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
disposal 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 as
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 disposal
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 of joint operation
A joint venture arrangement refers to the arrangement wherein two or more parties have joint control. Joint venture
arrangements are divided into joint operation and joint venture, based on the rights and obligations of the Company in such joint
venture arrangement. 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 arra ngement in which
the Company only has the right to the net assets of such arrangement.
As a party to joint operation, the Company recognizes assets separately held and liability separately assumed by the Company
and assets 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
Cash and cash equivalents of the Company include cash on hand, bank deposits available for payment at any time, and
investment of short term (generally due in 3 months since purchase date) and strong liquidity, easy to be converted into known
amount with small risk of value variation.
9. Foreign currency transactions and translation of foreign currency statements
(1) Foreign currency transactions
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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 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 their historical costs are 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 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 rate is recognized as other comprehensive income as the “foreign currency statement translation difference”; when
disposing of overseas operations, such exchange difference 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,
and 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 income, 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 approximate
to the spot exchange rate when the transaction occurs.
③The items in the cash flow statement that reflect the incurred amounts are converted to the exchange rate approximate 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 and on hand, creditor’s rights
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.
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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 financia l
liabilities, related transaction costs are charged to the initially recognized amounts. Accounts receivable that have no significant
financing component are initially measured by the Company at the transaction price determined according to the accounting
policies specified in “Note V. (33) Revenue”
(3) Classification and subsequent measurement of financial assets
①Classification of financial assets
The Company generally classifies financial assets into different types at the time of initial recognition according to the
business model for management of financial assets and the contractual cash flow characteristics of financial assets: financial a ssets
measured at amortized cost, financial assets measured at fair value through other comprehensive income and financial assets a t 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 designated 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 related 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 ke y
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
outstanding principal amount. Of which, the pr incipal 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
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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 at fair value though profit or loss
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 relationsh ip are
charged to the current profit and loss when derecognized, amortized according to effective interest rate method or recognized with
respect to impairment.
C. Creditor’s rights investments at fair value through other comprehensive income
After the initial recognition, such financia l 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 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 at fair value through profit or loss
Such financial liabilities include financial liabilities held for trading (including derivative instruments that are financia l
liabilities) and financial liabilities designated as at fair value through profit or loss.
After the initial recognition, such financ ial 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.
②Financial 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 separately presented in the balance sheet without offsetting. However, where the
following conditions are all met, they 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:
① The 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;
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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:
① The 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
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 de-recognizes such
financial liability (or such part of financial liability).
(7) Impairment of financial assets
①The Company conducts impairment accounting treatment and recognizes loss provisions for the following items based on
expected credit loss:
A. Financial assets measured at amortized cost;
B. Contract assets;
C. Creditor’s right investments at fair value through other comprehensive income;
D. Lease receivables
Other financial assets measured at fair value in the Company’s possession are not applicable to the expected credit loss model,
including creditor’s rights investments or equity instrument investments measured at fair value through profit or loss, equity
instrument investments designated as at fair value through other comprehensive income, and derivative financial assets.
②Measurement 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.
At the end of reporting period, the Company conducts impairment test for receivables individually for which there is
objective evidence that they have been impaired, and recognizes impairment loss and accrues bad debt provision based on the
difference between its present value of estimated future cash flow lower than its book value.
When it is impossible to assess information about expected credit loss at a reasonable cost for individual financial assets, the
Company classifies receivables portfolios according to credit risk characteristics and calculates expected credit loss on the basis o f
portfolio. For receivables classified as risk mix, the Company calculates the expected credit loss from the aforesaid financial assets
based on the historical credit loss experience and using the provision matrix, with related historical experience adjusted ba sed 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
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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.
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 the 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 financia l
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 creditor’s rights 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 ass et with
respect 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 asset.
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 c harged 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 creditor’s rights 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.
⑤ Write-off
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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
the underlying financial asset. 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 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 canceling treasury shares, the share capital is reduced by the total nominal value of canceled 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 capita l
reserve (share capital premium), surplus reserve and undistributed profits in succession.
(9) Convertible instruments
①Convertible instruments containing equity component
For convertible instruments issued by the Company that are convertible into equity shares and with respect to which the
number 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 a s 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 wit h 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.
②Other convertible instruments containing no equity component
For other convertible instruments issued by the Company and containing no equity component, at the time of initia l
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.
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After initial recognition, the derivative instrument component is measured at fair value and the gains or losses resulting fr om
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
component to the accounts related to equities. When a convertible instrument is redeemed, the difference between the price pa id
for redemption and the book value of the principal debt instrument and derivative instrument component is charged to the profit
and loss.
(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
financial instruments or their components into financial assets, financial liabilities or equity instruments at the time of initia l
recognition.
The Company treats preferred shares and perpetual bonds issued by it and containing both equity component and liability
component 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 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, the y are charged against
equities at the redemption price.
11. Inventories
The Company is required to comply with disclosure requirements set forth in the Self-regulatory Guideline No.3 of Shenzhen
Stock Exchange for Listed Companies—Industry Information Disclosure with respect to livestock, poultry and aquaculture related
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 s hipped,
costs are 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 invent ory
revaluation 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
same area and difficult to valuate separately from other items of such product series, the inventory deprecation reserve accr ues on
a consolidated basis; for other inventories, the inventory revaluation reserve accrues by the difference the cost of individua l
inventory item in excess of its net realizable value.
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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 previous ly 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 of low-value consumables and packaging materials
Low-value consumables and packaging materials are amortized using the one-off amortization method when requisitioned.
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 factors other than elapse of time) is presented as contract asset and impairment of contract asset ac crues based on the
expected 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 as 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
enterprise accounting standards and meets all of the following conditions, the Company recognizes it as an asset by treating it as
contract performance cost:
①Such cost is directly related to a contract currently acquired or expected to be acquired, including direct labor, direct
materials, manufacturing costs (or similar costs), costs specified to be borne by customers 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
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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
Company makes impairment provision for the excess portion and recognizes it as asset impairment loss:
① The 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 excee d the
book value of such asset at the reversal date should the impairment provision not have been made.
14. Held-for-sale assets
(1) Held-for-sale
When the Company recovers the book value of a non-current asset or disposal group mainly by selling rather than
continuously using it, such non-current asset or disposal group is classified as held for sale.
The non-current assets mentioned above do not include financial assets, deferred income tax assets, investment properties that
are subsequently measured at fair value, biological assets that are measured at fair value minus selling costs, assets formed from
employee compensation and rights arising from insurance contracts.
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 directly related to these assets.
The Company classifies a non-current asset or disposal group that meets both of the following conditions as held-for-sale:
①Such non-current 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 non-current 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
and 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
operations during the comparable accounting period again.
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15. Long-term equity investment
Long-term equity investments refer to equity investments that have control, common control or significant influence over the
invested entity, including investments in subsidiaries, affiliates and joint ventures. The equity investments whereby the Company
has no control, common control or significant influence over the invested entity are accounted for as financial assets at fair value
through other comprehensive income or financial assets at fair value through profit or loss, with respect to which the acc ounting
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 invested entity and
enjoy the right to the net assets of the invested entity, the invested entity 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 invested entity, the invested entity is deemed an affiliate of the Company. When the
Company directly or indirectly through subsidiaries holds more than 20% but less than 50% of the voting shares in the invested
entity, the Company is generally considered as having significant influence over the invested entity, unless there is conclusive
evidence hat the Company cannot participate in the production and business decisions of the invested entity. When the Company
holds less than 20% of the voting shares in the invested entity, 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 invested entity;
②Participation in the financial and business policy making process of the invested entity;
③Material transactions between the Company and the invested entity;
④Assignment of managers to the invested entity;
⑤Provision of key technical data to the invested entity.
(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 da te of
combination is treated as the initial investment cost of the long-term equity investment. The share capital premium in the capita l
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.
② Long-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 initia l
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
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Long-term equity investments whereby the Company exerts control over the invested entity 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.
① Long-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 decla red but
not yet distributed, the current income on investment is recognized at the cash dividends or profits declared and distributed by the
invested entity that the Company is entitled to.
② Long-term equity investment accounted for using the equity method
When 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 invested
entity at the time of investment; if the investment cost of long-term equity investment is less than the share of fair value of
identifiable net assets of the invested entity at the time of investment, the resulting difference is charged to the current non-
business revenue, while adjusting the cost of long-term equity investment.
When using 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 invested entity, 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 invested entity, and the book value of the lon g-term
equity investment is reduced accordingly; for changes in ownership interest of the invested entity 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 by the invested entity, the Company, based on the fair value of identifiable net assets of the invested entity 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
invested entity 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 interna l
transactions, where there is evidence that such loss is related asset impairment loss, is recognized in full and is not offse t.
When recognizing the net losses incurred by the invested entity 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 invested entity are written down to zero. In addition, if the Company has the obligation to assume additional loss
of the invested entity, estimated liabilities are determined at expected obligations and recognized in current investment los s. Where
the invested entity realizes net profit 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 invested entity (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
increased due to additional investment or otherwise, thus allowing the Company to exert common control or significant influence
over the invested entity, 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.
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Where the originally held equity investment is classified as investment in other equity instruments, 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 invested entity 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 value 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 invested entity 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 invested entity due to additional inves tments
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 invested entity with common control or significant influence
becomes unable to exert common control or significant influence over the invested entity due to decreased shareholding ratio as a
result of partial disposal or otherwise, the remaining equity investments are treated according to financial instrument recog nition
and measurement standards instead, and the difference between the fair value and book va lue 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 invested entity 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 invested entity 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 over an invested entity is lost due to disposal of part of equity investments or otherwise, when preparing
individual financial statements, the remaining equities after disposal, if able to exert common control or significant influe nce over
the invested entity, are accounted for using the equity method instead, and such remaining equities are adjusted as if they have
been accounted for using the equity method as of the time of acquisition. Where the remaining equities after disposal cannot exert
common control or significant influence over the invested entity, they are measured at fair value according to the financia l
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 treate d on
the same basis as the invested entity directly disposes of related assets or liabilities, and ownership interest recognized due to
changes in ownership interest of the invested entity other than net profit and loss, other comprehensive income and profit
distribution should be transferred in full to the current investment income when ceasing to be accounted for using the e quity
method; in case of partial disposal and remaining equities still accounted for using the equity method, the other comprehensi ve
income originally recognized should be treated on the same basis as the invested entity directly disposes of related assets or
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liabilities and carried over pro rata, while ownership interest recognized due to changes in ownership interest of the invested entity
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 accountin g 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 related 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 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 lower 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
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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 a sset are
highly likely to flow to the Company and its costs can be reliably measured, while deducting the book value of the replaced
portion; expenditures related to daily maintenance of fixed assets are charged to current profit and loss as and when incurre d.
(2) Depreciation method
Annual depreciation
Category Depreciation method Depreciation period Residual value ratio
rate
Houses and buildings Straight-line method 5-40 years 5.00% 2.38%－19.00%
Machinery and
Straight-line method 3-15 years 5.00% 6.33%－31.67%
equipment
Transport equipment Straight-line method 3-10 years 5.00% 9.50%－31.67%
Others Straight-line method 3-5 years 5.00% 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 le ast 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 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 dec line 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 de-recognizes 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 assets a nd
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 cos ts
and exchange gains or losses that should be capitalized.
(2) Carry-over of construction in progress to fixed assets
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A fixed asset being built is transferred to fixed assets when it reaches the intended usable state. Where a fixed asset buil t
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 c ost 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 lower 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, once 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 eligible
for capitalization are capitalized and charged to the related asset cost, and other borrowing costs are all recognized as financia l
expenses as and when incurred. Assets that meet the conditions for capitalization refer to fixed assets, inventories and othe r assets
that 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
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
production and the period of interruption continues for more than 3 months, the capitalization of borrowing costs is suspende d
until 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 specia l
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:
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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;
③ The costs of such biological assets 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 biological
asset refer to necessary expenditures attributable to such asset and incurred to bring such asset to the marketable stage (re fers to
consumptive biological assets) or intended purpose of production and operations such as seedling cost, feed cost, drug cost, 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, and commercial generation broilers (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. Fattening pigs refer to pigs from the date of transfer from nursery pigpen to the date of slaughter, and costs of fattenin g
pigs include costs of nursery piglets and feeding costs at the fattening stage.
D. Commercial generation broilers (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
seedling 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 card 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 breeding 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 expenditures 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).
③Conversion of biological assets
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In case of conversion of biological assets, such as consumptive biological assets re-purposed as productive biological assets
or productive biological assets re-purposed as consumptive biological assets, the costs after change of use are determined at the
book value at the time of change of use.
(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 output) Estimated net residual value
Breeding sows of generations other than three-way 36 months 500-1400 Yuan/pig
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
assets 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.
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 is required to comply with disclosure requirements set forth in the Self-regulatory Guideline No.3 of Shenzhen
Stock Exchange for Listed Companies—Industry Information Disclosure with respect to livestock, poultry and aquaculture related
businesses.
21. Right-of-use assets
The categories of the Company’s right-of-use assets mainly include total leasing, land, houses and buildings, machinery and
equipment, transport equipment and others.
At the commencement date of lease term, the Company recognizes its right to use leased assets within the lease term as right-
of-use asset, and the initial cost of right-of-use asset includes the initially measured amount of lease liabilities, lease payments paid
on or before the commencement date of lease term, net of amounts related to lease incentives already enjoyed if lease incentives
exist; initial direct costs incurred by the lessee; and the costs expected to be incurred by the lessee to dismantle and remove leased
assets, restore the site of leased assets or restore the leased assets to the state agreed in the lease terms.
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The Company depreciates its right-of-use assets using the straight-line method. Where it can be reasonably determined that
the ownership of a leased asset can be acquired upon expiration of the lease term, the Company depreciates the leased asset over
the remaining service life of the leased asset. Otherwise, the leased asset is depreciated over the lease period or the remaining
service life of the leased asset, whichever is shorter. The right-of-use assets accrue impairment provision according to the
accounting policy described in “Note V. (24) Impairment of long-term assets”.
22. Intangible assets
(1) Valuation method, service life and impairment test
Intangible assets refer to the identifiable non-monetary 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
asset is recognized only when economic benefits related to it is highly likely to flow to the Company and its cost can be reliably
measured.
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 es timated
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 Service life stipulated by law Straight-line method
Patents 10 or 20 years Service life stipulated by law Straight-line method
Trademarks 10 years Service life stipulated by law Straight-line method
Other office 3 years Reasonable estimation Straight-line method
software
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 recovera ble
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 produc e
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new or substantially improved materials, devices or products is determined as the development phase, which is characterized by
specificity and high 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 charge d 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.
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 properties
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 indication
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 inflows from whic h are
basically independent from other assets or asset groups. Fair value of the asset is determined by price of a sales agreement in fair
trade; if there is no sales agreement but an active market of assets, the fair value is determined by the buyer’s offer; if there is no
sales agreement or active market of assets, the fair value is estimated on the basis of the best information available. Disposal
expenses of the asset 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.
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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 asset 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 refer to various costs that have occurred and have an amortization period of more than one
year (exclusive) 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.
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 asset,
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 refers to various forms of remuneration or compensation given by the Company for obtaining
services provided by employees or for termination of labor relations. Employee compensation includes short-term compensation,
post-employment benefits, termination benefits and other long-term employee benefits. The benefits provided by the Company to
spouses, children, dependents, dependents of deceased employees and other beneficiaries 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 charges it to the current profit and loss or
related asset cost. Of which, the non-monetary benefits are measured at fair value.
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(2) Accounting treatment method for post-employment benefits
Post-employment benefit plans consist of defined contribution plan and defined benef it 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 financia l
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.
(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 payment 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
Apart from short-term lease and low-value asset lease, the Company at the commencement date of lease term initially
measures lease liabilities at the present value of the lease payment not yet paid on such date, using the interest rate implicit in lease
as the discounting rate. When it’s impossible to determine the interest rate implicit in lease, the incremental loan interest rate is
used as the discounting rate. The Company calculates the interest expense on lease liabilities in various periods of the lease term at
the fixed cyclic interest rate and charges them to the current profit or loss or related asset cost. Variable lease payments not
included in the measurement of lease liabilities are charged to current profit or loss or related asset cost when actually incurred.
After the commencement date of lease term, the Company re-measures the lease liabilities at the present value of changed lease
payments in the following cases:
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①The payable amount estimated based on residual value of guarantee changes;
②The index or ratio used to determine the lease payment changes;
③The Company’s results of assessment of option to purchase, option to renew lease or option to terminate lease change, or
the actual exercise of option to renew or option to terminate lease is inconsistent with the original assessment results.
When re-measuring the lease liabilities, the Company adjusts the book value of right-of-use assets accordingly. When the
book value of a right-of-use asset has been adjusted downward to zero but the lease liabilities still need to be further adjusted
downward, 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
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 a fter
discounting 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 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 fair 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
instruments 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 afte r
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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 fair 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 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.
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 e nvironment 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 ba lance of related
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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 b y 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 conta ins a significant
financing component, the Company determines the transaction price at the payable amount that the customer would pay in cash
should the customer have 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 g oods or
services and the customer’s payment of price is no more than one year, significant financing component existing in the contra ct is
not considered.
When meeting one of the following conditions, a performance obligation is one that should be performed within a particular
period, 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:
①The 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 substantial risk and reward on such legal title to the
customer;
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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 custo mer,
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.
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 subsidies consist of asset-related government subsidies and income-related government subsidies. The Company
defines the government subsidies acquired by it 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 to distinguish, they are classified in entirety as inco me-related
government subsidies.
(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; where related assets are sold, transferred,
scrapped or destroyed before the end of service life, the balance of related deferred income not yet allocated is transferred to the
current profit or loss from asset disposal. 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 appropriating 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 Company, the Company charges the corresponding interest subsidy against the related borrowing costs.
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35. Deferred income tax assets/ deferred income tax liabilities
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.
(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
obtain 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
combination 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 likely 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 ne tting
settlement of current income tax assets and liabilities or acquire assets and repay liabilities at the same time within each pe riod in
the future that has reversal of important deferred income tax assets and liabilities.
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36. Lease
(1) Identification and splitting of lease
At the commencement date of a contract, the Company assesses whether the contract is a lease or contains lease. A contract is
or contains a lease if a party to a contract transfers its right to control the use of one or more identified asse ts for a period of time in
exchange for consideration.
To determine whether a contract assigns the right to control the use of identified assets within a certain period, the Company
performs the following assessments:
①Whether the contract involves use of identified assets. An identified asset may be designated expressly in contract or
designated implicitly when the asset is available to the customer, and such asset can be distinguished physically or if a part of
capacity or other part of the asset cannot be physically distinguished but substantially represents the total capacity of the asset, thus
allowing the customer to acquire almost all economic benefits arising from use of the asset. If the supplier of the asset has the right
to substantially replace the asset during the entire period of use, such asset is not an identified asset;
②Whether the lessee has the right to acquire almost all economic benefits arising from use of the asset during the period of
use;
③Whether the lessee has the right to direct the use of the identified asset during such period of use.
Where a contract contains multiple separate leases, the lessee and the lessor split the contract up and perform accounting
treatment of each individual lease respectively. Where a contract conta ins lease and non-lease components, the lessee and the
lessor split the lease component from none-lease component. When splitting the lease component and non-lease component
contained in a contract, the lessee allocates the consideration for contract according to the relative proportions of the sum of
separate prices of lease components and the sum of separate prices of non-lease components; the lessor allocates the consideration
for contract according to the provisions of the accounting policy described in “Note V. (33) Revenue” regarding allocation of
transaction price.
(2) Assessment of lease term
Lease term refers to a period in which the Company has the right to use leased assets and which is irrevocable. Where the
Company has the option to renew, i.e., the right to choose to renew the lease of the asset, and reasonably determines that it will
exercise such option, the lease term also includes the period covered by the option to renew the lease. Where the Company has the
option to terminate a lease, i.e., the right to choose to terminate the lease of the asset, and reasonably determines that it will not
exercise such option, the lease term includes the period covered by the option to terminate lease. Where a significant event or
change occurs within the scope controllable by the Company, and affects whether the Company reasonably determines to exercise
the applicable option, the Company reassesses whether it reasonably determine to exercise the option to renew, option to purchase
or not to exercise the option to terminate the lease.
(3) The Company as a lessee
The general accounting treatment where the Company acts as a lessee is detailed in “Note V. (21) Right-of-use assets” and
“Note V. (28) Lease liabilities”.
①Lease change
Lease change refers to any change to lease scope, lease consideration or lease term outside the original contractual terms,
including addition or termination of the right to use one or more leased assets, and extension or shortening of contractually
specified lease term, etc.
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When a lease changes and meets the following conditions at the same time, the Company treats such lease change as one
separate lease for accounting purposes:
A. The lease change expands the lease scope by adding the right to use one or more leased assets;
B. The increased consideration is equivalent to the amount of separate price of the expanded portion of the lease scope as
adjusted according to the circumstances of the contract.
Where a lease change is not treated as one separate lease for accounting purposes, at the effective date of lease change, the
Company re-determines the lease term and discounts the changed lease payments at a revised discounting rate to re -measure the
lease liabilities. When calculating the present value of the changed lease payment, the Company uses the interest rate implicit in
lease over the remaining lease period as the discounting rate; where the interest rate implicit in lease over the remaining lease
period cannot be determined, the incremental loan interest rate of the Company as at the effective date of lease change is used the
discounting rate.
With respect to the effects of the aforesaid adjustment to lease liabilities, the Company performs accounting treatment by
distinguishing the following circumstances:
A. Where the lease change results in narrowed scope of lease or shortened lease term, the Company adjusts the book value of
right-of-use asset downward to reflect the partial or total terminat ion of the lease. The Company will include the relevant gains or
losses on the partial or total termination of the lease into the current profit and loss.
B. As for other lease changes, the Company adjusts the book value of right-of-use asset accordingly.
②Short-term lease and low-value asset lease
Where the Company has chosen not to recognize right-of-use assets or lease liabilities for short-term lease (any lease with a
term of no more than 12 months) and low-value asset lease at the commencement date of lease, they are charged to the related
asset cost or current profit and loss using the straight-line method over each period of the lease term.
(4) As a lessor
A lease that substantially transfers almost all risk and reward related to the ownership of a leased asset at the commencement
date of lease is financing lease, apart from which all leases are operating leases.
①As a lessor under financing lease
At the commencement date of a lease, the Company recognizes financing lease payments receivable with respect to financing
lease and de-recognizes financing lease assets. When initially measuring the financing lease payments receivable, the Company
treats the net lease investment as the recorded value of financing lease payment receivable. The net lease investment is the sum of
the unsecured residual value and the present value of the lease receipts not yet received at the commencement date of the lea se that
is discounted at the interest rate implicit in lease.
The Company calculates and recognizes interest revenue on each period of the lease term at the fixed cyclic interest rate. The
variable lease payments acquired by the Company and not included in the measurement of net lease investment are charged to the
current profit or loss when actually incurred.
②As a lessor under operating lease
The rental revenue from operating lease is recognized as current profit or loss using the straight-line method over each period
of the lease term, while contingent rental is charged to the current profit or loss when actually incurred.
(5) Sale-and-leaseback transaction
The Company determines whether the asset transfer in a sale-and-leaseback transaction is sale through assessment according
to “Note V. (33) Revenue”.
①The Company acts as a lessee
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Where the asset transfer in the sale-and-leaseback transaction is sale, the Company, as the lessee, measures the right-of-use
asset formed from sale-and-leaseback at the portion of the book value of the original asset related to the right of use acquired
through leaseback, and recognizes related gains or losses only with respect to the rights transferred to the lessor; where the asset
transfer in the sale-and-leaseback transaction is not sale, the Company, as the lessee, continues recognizing asset being transferred
while recognizing a financial liability equivalent to the revenue from transfer, and performs accounting treatment of the financia l
liability according to “Note V. (10) Financial instruments”.
②The Company acts as a lessor
Where the asset transfer in the sale-and-leaseback transaction is sale, the Company, as the lessor, performs accounting
treatment of the asset purchase and treats the asset renting for accounting purposes according to the aforesaid provisions; w here
the asset transfer in the sale-and-leaseback transaction is sale, the Company, as the lessor, does not recognize the asset transferred,
but recognizes a financial asset equivalent to the revenue from transfer, and performs accounting treatment of the financial asset
according to “Note V. (10) Financial instruments”.
37. Changes to important accounting policies and accounting estimates
(1) Important accounting policy changes
□applicable not applicable
(2) Changes to important accounting estimates
□applicable not applicable
38. Important accounting judgments and estimates
Due to inherent uncertainties of business activities and changes in external factors, the Company needs to make judgments,
estimates 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 which the Company makes judgments, estimates and assumptions about amounts of financial statement items
are as follows:
(1) Expected credit loss of receivables
Based on the reasonable and warranted information available at the balance sheet date and historical credit loss profile and
considering forward-looking information, the Company accrues expected credit loss for receivables. The determination of
expected credit loss involves management’s estimates and judgments and if there is any difference between results of re -estimation
and existing estimates, the difference will affect the profits and book value of receivables during the period of estimate change.
(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 origina l
reasonable expectations will affect the book value of inventories and accrual or reversal of inventory revaluation reserve during the
period in which estimates are changed.
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(3) Impairment of 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, intangible assets and right-of-use 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 boo k
value of an asset or asset 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
present value of estimated future cash flows require estimation of data about output, selling price, related operating costs and other
aspects of such asset or asset group that involve future cash flows. The difference between actual results and original reasonable
expectations will affect the book value of long-term assets during the period in which estimates are changed.
(4) Depreciation and amortization
The Company depreciates or amortizes fixed assets, productive biological assets, right-of-use 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 financia l
statements in future accounting periods; mainly including:
①The Company pays enterprise income tax at home and in many foreign countries, whether part of items can be presented
and disbursed before tax requires approval and confirmation of competent tax authorities. If the final determinations of thes e tax
matters differ from the original projections and judgments, such difference will affect the current inc ome 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 income 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 exercise 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 accumulated amount of excess VAT paid by
subsidiaries of the Company engaged in slaughter and primary processing of meat foods is relatively large. If tax policies related
to deduction of input tax on agricultural products substantially change in the future, it might materially affect the payable taxes and
profit and loss in future periods.
VI. Taxes
1. Main taxes and tax rates
Tax category Tax base Tax rate
VAT Taxable sales 13%-3%
Urban maintenance and construction tax Turnover tax actually paid 7%, 5%, 1%
Enterprise income tax Taxable income 30%-5%
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Remarks on disclosure where there are different taxpayers subject to different enterprise income tax rates
Name of taxpayer Income tax rate
Hong Kong Dongxian Co., Ltd. 16.50%
New Hope Liuhe International Trade (HK) Co., Ltd. 16.50%
New Hope Singapore Pte. Ltd. 5%, 8%, 17% (note 1)
New Hope Singapore Premix Pte. Ltd. 17%
NHCS Investment Pte. Ltd. 17%
New Hope Singapore Biotechnology Pte. Ltd. 17%
New Hope Asia Investment Pte. Ltd. 17%
New Hope International Holdings (Pte.) Ltd. 17%
New Hope Global Investment Pte. Ltd. 17%
New Hope Ho Chi Minh City Co., Ltd. 15%, 20% (note 1)
New Hope Binh Dinh Co., Ltd. 20%
New Hope Hanoi LLC 10%, 20% (note 1)
New Hope Hanoi LLC Haiphong Branch 10%, 20% (note 1)
New Hope Hanoi LLC Bac Giang Branch 20%
New Hope Hanoi LLC Thanh Hoa Branch 20%
New Hope Dong Thap Aquatic Feed Co., Ltd. 10%, 20% (note 1)
Than Hoa New Hope Livestock Services Co., Ltd. 10%, 20% (note 1)
New Hope Binh Dinh Livestock Co., Ltd. 10%, 20% (note 1)
New Hope Binh Phuoc Livestock Co., Ltd. 7.5%, 15% (note 1)
New Hope Vinh Long Co., Ltd. Tax free (note 1)
New Hope Vietnam Technological Livestock Services Co., Ltd. 20%
Sichuan New Hope Agriculture (Cambodia) Co., Ltd. 20%
Myanmar New Hope Agro-Technology Co., Ltd. Tax free (note 1)
New Hope Mandalay Co., Ltd. Tax free (note 1)
New Hope Laos Co., Ltd. 4% (note 1)
PT New Hope Medan 22%
PT New Hope Farms Indonesia 22%
PT New Hope Farms Indonesia Jawa Timur Branch 22%
PT New Hope Jawa Timur 22%
PT New Hope Jawa Timur Mojokerto Branch 22%
PT New Hope Indonesia 22%
PT New Hope Indonesia Jawa Tengah Branch 22%
PT New Hope Indonesia Cirebon Branch 22%
PT New Hope Indonesia Lampung Branch 22%
PT New Hope Indonesia Makassar 22%
PT New Hope Poultry Trade Indonesia 22%
PT New Hope Food Indonesia 22%
PT New Hope Aqua Feed Indonesia 22%
PT Corn Drying Indonesia 22%
PT Corn Drying Indonesia Lampung Branch 22%
New Hope Tarlac Agriculture Inc. 1%, 25% (note 2)
New Hope Isabela Agriculture Inc. 1%, 25% (note 2)
New Hope Central Luzon Agriculture Inc. 1%, 25% (note 2)
New Hope Pampanga Agriculture Inc. 1%, 25% (note 2)
New Hope Bulacan Agriculture Inc. 1%, 25% (note 2)
New Hope Philippines Animal Healthcarae Services Inc. 1%, 20% (note 2)
New Hope Davao Agriculture Ltd. Tax free (note 1)
New Hope Philippines Livestock Inc. Tax free (note 1)
New Hope Farms Bangladesh Ltd. 0.6% (note 3)
New Hope Bangladesh Ltd. 3%, 10%, 15% (note 3)
New Hope Agrotech Bangladesh Ltd. 3%, 10%, 15% (note 3)
Xinhe International Trade Co., Ltd. 30%
New Hope Animal Nutrition Bangladesh Ltd. 3%, 10%, 15% (note 3)
New Hope Lanka (Pvt) Limited 24%
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New Hope Kolkata Animal Feed Private Ltd. 30%
New Hope South Africa Ltd. 28%
New Hope Egypt Ltd. 22.50%
New Hope Egypt Aquatic Technology Ltd. 22.50%
New Hope Agriculture (Egypt) Ltd. 22.50%
New Hope Alexander Ltd. 22.50%
New Hope Egypt Poultry Ltd. Tax free (note 1)
New Hope Agro-technology Nigeria Ltd. 30%
2. Tax preferences
(I) VAT
(1) According to the Proclamation of the Ministry of Finance, the State Administration of Taxation and General
Administration of Customs on Policies Deepening the VAT Reform (Proclamation of MoF, SAT and GAC 2019 No. 39), as of
April 1, 2019, the tax rate applicable to production and sale of feed products by feed manufacturers of the Company has been
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 (C.S.[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% or13% (general taxpayers).
(2) The preliminarily processed products produced by domestic slaughtering and meat packing businesses of the Company,
according to the Proclamation of the Ministry of Finance, the State Administration of Taxation and Ge neral Administration of
Customs on Policies Deepening the VAT Reform (Proclamation of MoF, SAT and GAC 2019 No. 39), are subject to a tax rate of
9% as of April 1, 2019, 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 are subject to a VAT rate of 13% or 9% instead as of April 1, 2019 according to the Proclamation
of the Ministry of Finance, the State Administration of Taxation and General Administration of Customs on Policies Deepening
the VAT Reform (Proclamation of MoF, SAT and GAC 2019 No. 39).
(5) Subsidiaries Sichuan Xinle Plastics Co., Ltd, Zibo Huide Feed Machinery Co., Ltd and Chengdu Fenglan Technology Co.,
Ltd are subject to a VAT rate of 13% as of April 1, 2019 according to the Proclamation of the Ministry of Finance, the State
Administration of Taxation and General Administration of Customs on Policies Deepening the VAT Reform (Proclamation of
MoF, SAT and GAC 2019 No. 39).
(6) According to the Proclamation of the Ministry of Finance and the State Administration of Taxation on Exempting Value -
Added Taxes for Small-scale VAT Taxpayers (MoF & SAT Proclamation 2022 No. 15), from April 1, 2022 to December 31, 2022,
the taxable sales income of small-scale VAT taxpayers subject to a rate of 3% are exempted from value-added tax; and the VAT
pre-paid items subject to a 3% pre-collection rate are suspended for advance payment of VAT. The implementation period of the
tax preference policies specified in Article 1 of the Proclamation of the Ministry of Finance and State Administration of Taxation
on Continuing Part of Tax Preference Policies in Response to the Pandemic (MoF & SAT Proclamation 2021 No. 7) has been
extended to March 31, 2022.
(II) Enterprise income tax
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(1) According to the Proclamation on Continuing Enterprise Income Tax Policy for the Go-west Strategy (MoF Proclamation
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 inco me
tax at a reduced rate of 15%.” Mianyang Branch and the subsidiaries of the Company established in west China, including
Guanghan Guoxiong, Zunyi Jiahao, Guiyang Xinke, Qiandongnan New Hope, Qujing Guoxiong, Chongqing Guoxiong, Ziyang
Jiahao, Luzhou New Hope, Hope Food, Zigong Hengbo, Pucheng New Hope, Lanzhou New Hope, Yulin New Hope, Guilin New
Hope, Pengshan New Hope, Century Investment, Wulong New Hope, Kai County New Hope, Chongqing New Hope, Baoji New
Hope and Fenglan Technology, are subject to an income tax rate of 15%. All branches operating across regions aggregate and
settle their income tax with the tax authority governing the parent company at the end of year following the principles of “unified
calculation, level-by-level management, local prepayment, aggregate clearing and fiscal allocation”.
(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 Paragraph 1 in Article 27 of the Enterprise Income Tax Law of the People’ s
Republic of China, Article 86 of the Implementing Regulations for Enterprise Income Tax Law of the People’s Republic of China
and Document C.S.(2008)No.149 ; the deep processing business is subject to 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 Paragraph 1 in Article 27 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, and
have completed filings for tax exemption.
(4) The subsidiaries Weifang New Hope Liuhe Feed Technology Co., Ltd and Huanggang New Hope Feed Technology Co.,
Ltd are 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) According to document Z.Z.F.[2014]No.51, enterprises in Tibetan Autonomous Region are subject to an enterprise
income tax rate of 15% as set forth in the Go-West Strategy, and Shanghai Investment, Food Holdings and Lhasa New Hope, all
registered in Lhasa, are subject to a preferential income tax rate of 15%.
(6) According to the Notice of Ministry of Finance and State Administration of Taxation on Enterprise Income Tax
Preference Policy for Hainan Free Trade Port (C.S.[2020] No.31), companies in encouraged industries that are registered in
Hainan Free Trade Port and substantially operate are subject to a reduced enterprise income tax rate of 15%, to which Hainan
Trading is applicable.
(7) Enterprise income tax policies for overseas subsidiaries of the Company:
① New Hope Hanoi Co., Ltd. and Than Hoa New Hope Livestock Services Co., Ltd. are subject to income tax rate of 10%
with respect to their main business in 2022 according to the local tax preference policies, while income from their non-main
businesses is not entitled to income tax preference and is subject to income tax rate of 20%.
② New Hope Ho Chi Minh City Co., Ltd. is subject to an income tax rate of 15% with respect to its first phase investment,
and 20% with respect to remaining phases of investment according to local tax preference policies.
③ New Hope Vinh Long Co., Ltd. and New Hope Binh Dinh Co., Ltd. Are exempted from enterprise income tax in 2022
according to local tax preference policies.
④ 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 is not entitled to
income tax preference and is subject to the normal income tax rate of 20%.
⑤ New Hope Dong Thap Aquatic Feed 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 e xemption
for 3 years as of the year of profit making and tax collection at half of the statutory tax rate for 7 years”. This 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
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second phase of project is subject to an income tax rate of 20%, and since 2018, it is exempted from income tax for 2 years(2018-
2019), a reduced income tax rate of 10% for 4 years (2020-2023) and an income tax rate of 20% as from 2024. Its third phase of
project is subject to an income tax rate of 20%, and since 2021, it is exempted from income tax for 2 years(2021-2022) , a reduced
income tax rate of 10% for 4 years (2023-2026) and an income tax rate of 20% as from 2027.
⑥ New Hope Binh Phuoc Livestock Co., Ltd. is subject to income tax rate of 7.5% with respect to taxable income from its
main business according to the local tax preference policies, while income from its non-main businesses is not entitled to income
tax preference and is subject to the normal income tax rate of 15%.
⑦ New Hope Davao Agriculture Co,. Ltd. and New Hope Philippines Livestock Inc. are exempted from tax for 5 years as
from their dates of registration according to local tax laws.
⑧ Myanmar New Hope Agro-Technology Co., Ltd. is exempted from enterprise income tax for 5 years starting from officia l
production and sales operations as from November 1, 2018 according to local tax preference policies. This company was put int o
operation in November 2018 and its tax holiday is (from November 1, 2018 to October 31, 2023), of which 2022 is a period
exempted from income tax. 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 according to local tax preference policies. This company was put
into operation on January 2, 2021 and its tax holiday is (from January 2, 2021 to December 31, 2025), of which 2022 is a peri od
exempted from income tax.
⑨ New Hope Laos Co., Ltd. is subject to a halved income tax rate of 4% according to local tax preference policies.
⑩ New Hope Singapore Pte. Ltd. is subject to an income tax rate of 5% with respect to its enterprise income tax related trade
revenue (DEI), and its preferential period is 5 years (July 1, 2015 to June 30, 2020) +3 years (July 1, 2020 to June 30, 2023), with
the first five-year period as the first phase, following which the Economic Development Board (EDB) reassessed this company.
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 (July 1, 2017to June 30, 2022), 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 to the aforesaid preferences, and is subject to an income tax rate of 17%. In the calculation, 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.
New Hope Egypt Poultry Ltd. is exempted from enterprise income tax within 10 years of commencement date of its
production activities with respect to its revenue from activities related to livestock, fishery, poultry raising and honey pr oduction
according to the local tax preference policies. This company was put into operation in December 2020 and was exempted from tax
in 2022.
Notes:
1. The income tax preference policies applicable to the Company are detailed in Section 2. (II)(7) “Enterprise income tax
policies for overseas subsidiaries of the Company”.
2. New Hope Central Luzon Agriculture Inc., New Hope Tarlac Agriculture Inc., New Hope Bulacan Agriculture Inc., New
Hope Isabela Agriculture Inc.and New Hope Pampanga Agriculture Inc. are taxed at the higher of 1% of its gross profits or 25% of
its actual profits according to the local tax laws. New Hope Philippines Animal Healthcarae Services Inc. is taxed at the higher of
1% of its gross profits or 20% of its actual profits according to the local tax laws.
3. New Hope Bangladesh Ltd., New Hope Agrotech Bangladesh Ltd., New Hope Farms Bangladesh Ltd. and New Hope
Animal Nutrition Bangladesh 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 Ltd. are subject to a tax rate
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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
option 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 is 0.6% of all revenue. The actual tax rate is whichever
higher between the two options.
4. Apart from the aforesaid companies, all other majority-owned subsidiaries are subject to an income tax rate of 25%.
3. Others
VII. Notes to items in consolidated financial statements
1. Cash at bank and on hand
Unit: Yuan
Item Ending balance Beginning balance
Cash on hand 44,373,241.37 20,740,899.50
Bank deposits 9,777,458,670.34 13,863,361,192.87
Other monetary capital 2,451,366,659.12 984,978,809.66
Total 12,273,198,570.83 14,869,080,902.03
Wherein: total amount deposited
702,796,161.51 691,407,513.98
abroad
Total amount restricted from
1,580,886,204.82 576,296,667.92
use due to mortgage, pledge or freeze
Other remarks
1. Among the ending balance of other monetary capital, the balance of various margins was1,580,886,204.82Yuan, which is
unavailable due to restrictions on use, therefore it is presented in the cash at bank and on hand in the balance sheet, not as cash and
equivalents in the cash flow statement.
2. There were no momentary capital deposited abroad and the repatriation of which is restricted.
2. Held-for-trading financial assets
Unit: Yuan
Item Ending balance Beginning balance
Financial assets at fair value through
86,905,786.55 20,535,939.74
profit or loss
Wherein:
Derivative financial assets 86,905,786.55 20,535,939.74
Wherein:
Total 86,905,786.55 20,535,939.74
Other remarks
1. The derivative financial assets in the held-for-trading financial assets mainly consist of interest rate swaps and futures contracts
purchased.
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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 79,536,644.56 70,935,977.16
Commercial acceptance bills 6,374,200.00 10,292,486.45
Total 85,910,844.56 81,228,463.61
Unit: Yuan
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 derecognized at the end of Amount not derecognized at the end of
Item
period period
Bank acceptance bills 1,020,325,901.25
Commercial acceptance bills 6,141,424,653.03
L/C 220,012,178.93
Negotiable credit certificate of accounts
106,999,926.82
receivable
Total 7,488,762,660.03
4. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: Yuan
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Proporti Book Proporti Book
Proporti value Proporti value
Amount Amount on Amount Amount on
on on
accrued accrued
Account
s
receivab
le with 39,104,3 28,340,7 10,763,6 25,967,5 24,372,2 1,595,28
2.05% 72.47% 1.86% 93.86%
provisio 60.89 33.44 27.45 67.20 80.07 7.13
n for bad
debts by
individu
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al item
Wher
ein:
Account
s
receivab
le with
provisio 1,870,23 312,349, 1,557,89 1,366,58 293,114, 1,073,47
97.95% 16.70% 98.14% 21.45%
n for bad 9,425.64 045.37 0,380.27 4,442.00 392.15 0,049.85
debts on
a
portfolio
basis
Wher
ein:
1,909,34 340,689, 1,568,65 1,392,55 317,486, 1,075,06
Total 100.00% 17.84% 100.00% 22.80%
3,786.53 778.81 4,007.72 2,009.20 672.22 5,336.98
Provision for bad debts by individual item: accounts receivable with provision for bad debts in excess of the Company's policy
provision
Unit: Yuan
Ending balance
Name
Book balance Bad debt provision Proportion accrued Reason for provision
By recoverable amount
SUPA AT 3,872,318.44 1,141,461.43 29.48%
lower than book value
PT.UNGGAS
By recoverable amount
BERSAMA SENTOSA 3,405,963.54 1,223,242.28 35.91%
lower than book value
PERKASA
CV UNGGAS
MAKMUR By recoverable amount
2,611,668.60 2,611,668.60 100.00%
INDONESIA lower than book value
PERKASO
PT.PEKSI By recoverable amount
2,569,070.26 456,009.97 17.75%
GUNARAHARJA lower than book value
By recoverable amount
SPS MITRA 2,492,565.35 1,306,378.00 52.41%
lower than book value
PT. UNGGAS
By recoverable amount
MANDIRI 2,362,431.71 1,641,947.32 69.50%
lower than book value
INDONESIA
DRH.H. BAGUS By recoverable amount
2,127,036.90 1,228,363.81 57.75%
SETIABUDI lower than book value
CV.CIKEMBAR JAYA By recoverable amount
2,062,359.43 2,062,359.43 100.00%
FARM lower than book value
KAYTANPIO FARM, By recoverable amount
2,040,986.20 2,040,986.20 100.00%
INC. lower than book value
PT JANU PUTRA By recoverable amount
1,840,830.00 909,185.94 49.39%
SEJAHTERA lower than book value
ISA BAGUS By recoverable amount
1,733,592.08 1,733,592.08 100.00%
DWINATA,SE lower than book value
PT.INTI MITRA By recoverable amount
1,672,315.75 1,672,315.75 100.00%
SUKSES lower than book value
PT.SUMBER INTAN By recoverable amount
1,552,217.45 1,552,217.45 100.00%
PERKASA lower than book value
By recoverable amount
Zhao Jiu 1,149,540.00 1,149,540.00 100.00%
lower than book value
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SCRS VETERINARY By recoverable amount
1,125,250.05 1,125,250.05 100.00%
TRADING lower than book value
By recoverable amount
Liu Quanshen 1,045,000.00 1,045,000.00 100.00%
lower than book value
PT.MULYA USADHA By recoverable amount
980,496.40 980,496.40 100.00%
LESTARI lower than book value
CV.WAHYU By recoverable amount
651,940.65 651,940.65 100.00%
UNGGAS JAYA lower than book value
M.B. DECENA JR.
By recoverable amount
LIVESTOCK 641,901.68 641,901.68 100.00%
lower than book value
DEALER
PT GUNUNG
UNGGAS By recoverable amount
624,312.13 624,312.13 100.00%
INDONESIA lower than book value
(GUNSA)
By recoverable amount
Zhang Lina 522,720.00 522,720.00 100.00%
lower than book value
By recoverable amount
NATASHA FARM 382,618.67 382,618.67 100.00%
lower than book value
SIMON PETRUS By recoverable amount
297,868.07 297,868.07 100.00%
KERISNA lower than book value
By recoverable amount
HAIDAR PS 245,594.39 245,594.39 100.00%
lower than book value
CV ANUGERAH By recoverable amount
212,153.67 212,153.67 100.00%
BERMITRA lower than book value
PT ARJUNA DAMAI By recoverable amount
206,399.00 206,399.00 100.00%
LOSETA lower than book value
By recoverable amount
AGUNG WAHYONO 169,536.49 169,536.49 100.00%
lower than book value
By recoverable amount
SUNARTO 162,980.88 162,980.88 100.00%
lower than book value
By recoverable amount
Kong Lingjie 143,800.00 143,800.00 100.00%
lower than book value
KARUNIA BERKAH By recoverable amount
117,667.39 117,667.39 100.00%
MAJU lower than book value
By recoverable amount
SAMSUL ARIFIN 81,225.71 81,225.71 100.00%
lower than book value
Total 39,104,360.89 28,340,733.44
Provision for bad debts by portfolio: overseas accounts receivable with provision for bad debts by portfolio
Unit: Yuan
Ending balance
Name
Book balance Bad debt provision Proportion accrued
Risk free 78,729,965.35 0.00%
Low risk 486,640,188.88 13,382,607.97 2.75%
Medium risk 41,369,159.21 8,021,480.02 19.39%
High risk 110,875,535.83 110,875,535.83 100.00%
Total 717,614,849.27 132,279,623.82
Remarks on basis for determination of this portfolio:
For accounts receivable classified as risk portfolio, 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 refe rence to
the historical credit loss experience and in light of the current situation and forecast future economic situation.
A. Accounts receivable of overseas businesses
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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%
Provision for bad debts by portfolio: domestic accounts receivable with provision for bad debts by portfolio
Unit: Yuan
Ending balance
Name
Book balance Bad debt provision Proportion accrued
Low risk 883,017,313.06 11,567,528.67 1.31%
Relatively lower risk 108,458,882.52 7,353,512.09 6.78%
High risk 161,148,380.79 161,148,380.79 100.00%
Total 1,152,624,576.37 180,069,421.55
Remarks on basis for determination of this portfolio:
For accounts receivable classified as risk portfolio, 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 businesses
No. Risk analysis Expected credit loss rate
B-1 Low risk 1.31%
B-2 Relatively lower risk 6.78%
B-3 High risk 100.00%
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) 1,615,908,701.45
Wherein: less than 6 months 1,510,196,512.58
7-12 months 105,712,188.87
1-2 years 84,071,097.23
2-3 years 110,207,287.74
Over 3 years 99,156,700.11
3-4 years 22,906,128.44
4-5 years 9,384,934.34
Over 5 years 66,865,637.33
Total 1,909,343,786.53
(2) Bad debt provision accrued, recovered or reversed in the current period
Bad debt provision accrued in the current period:
Unit: Yuan
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Current change
Beginning
Category Recovered or Ending balance
balance Accrued Charged off Others
reversed
Bad debt
provision for
317,486,672.22 28,125,524.43 2,191,293.98 2,731,123.86 340,689,778.81
account
receivables
Total 317,486,672.22 28,125,524.43 2,191,293.98 2,731,123.86 340,689,778.81
(3) Accounts receivable actually charged off in the current period
Unit: Yuan
Item Amount charged off
Accounts receivable actually charged off 2,191,293.98
Of which, significant charge off of accounts receivable:
Unit: Yuan
Whether the
Charge-off amounts were
Nature of accounts Amount charged Cause of charge-
Entity Name procedure incurred by
receivable off off
performed related-party
transaction
M.B. Long time
DECENA JR. overdue,
Goods payment 2,156,474.11 Note No
LIVESTOCK recognized as
DEALER difficult to recover
Long time
overdue,
Han Deyin Goods payment 19,903.36 Note No
recognized as
difficult to recover
Zhejiang Bihai Long time
Xianshan Seafood overdue,
Goods payment 14,916.51 Note No
Development Co. recognized as
Ltd. difficult to recover
Total 2,191,293.98
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; individua l
charged-off amount of ≥ 0.5 million Yuan is submitted to the chairman for approval.
(4) Top 5 accounts receivable in ending balance by debtor
Unit: Yuan
Ending balance of accounts Percentage in the total ending Ending balance of bad debt
Entity Name
receivable balance of accounts provision
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receivable
Bengbu Tianbang Feed
74,748,791.74 3.91% 979,209.16
Technology Co., Ltd.
Xinzhi Huide Machinery
41,588,847.78 2.18% 3,754,328.59
Technology Co., Ltd.
Guangdong Hope No.1
Equity Investment Partnership 37,729,374.14 1.98% 2,558,051.57
(LP)
Beijing Jiaxin Hengtai Trade
25,183,183.65 1.32% 25,183,183.65
Co., Ltd.
Nanjing Heda Food Co., Ltd. 25,027,303.01 1.31% 25,027,303.01
Total 204,277,500.32 10.70%
5. Prepayments
(1) Prepayments presented by age
Unit: Yuan
Ending balance Beginning balance
Age
Amount Proportion Amount Proportion
Less than 1 year 2,947,364,141.94 99.00% 2,118,732,269.19 99.07%
1-2 years 23,405,809.94 0.79% 19,777,562.74 0.92%
2-3 years 6,223,368.45 0.21% 226,458.30 0.01%
Total 2,976,993,320.33 2,138,736,290.23
Remarks on causes of high-value prepayments aged over 1 year and not yet settled in time:
There were no significant prepayments aged over 1 year at the end of period.
(2) Top 5 prepayments in ending balance by payee
The aggregate amount of top five prepayments in ending balance by payee was 1,107,242,247.88 Yuan, accounting for 37.19%
of the total ending balance of prepayments.
6. Other receivables
Unit: Yuan
Item Ending balance Beginning balance
Dividends receivable 6,000,000.00 6,000,000.00
Other receivables 763,869,412.03 522,361,615.31
Total 769,869,412.03 528,361,615.31
270
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(1) Interest receivable
(2) Dividends receivable
1) Dividends receivable by category
Unit: Yuan
Project (or invested entity) Ending balance Beginning balance
Zibo Xinmu Machinery Technology Co.,
6,000,000.00 6,000,000.00
Ltd.
Total 6,000,000.00 6,000,000.00
(3) Other receivables
1) Other receivables categorized by nature of amount
Unit: Yuan
Nature of amount Ending book balance Beginning book balance
Petty cash 21,800,089.95 23,725,361.26
Margin 307,222,022.37 126,653,055.97
Deposit 178,751,884.78 159,271,196.17
Temporary borrowings 253,886,039.87 257,385,528.93
Advances 217,994,735.89 126,384,348.79
Others 47,024,085.04 53,170,664.13
Total 1,026,678,857.90 746,590,155.25
2) Bad debt provision accrued
Unit: Yuan
Phase 1 Phase 2 Phase 3
Expected credit loss
Bad debt provision Expected credit loss Total
Expected credit loss in over the entire duration
over the entire duration
the coming 12 months (with credit
(no credit impairment)
impairment)
Balance as of January
47,773,852.91 176,454,687.03 224,228,539.94
01, 2022
Balance as of January
1, 2022
in the current period
--transferred to phase 3 -8,431,588.17 8,431,588.17 0.00
Accrued in the current
36,062,005.23 36,062,005.23
period
Charged off in the
1,559,016.02 1,559,016.02
current period
Other changes -635,928.55 4,713,845.27 4,077,916.72
Balance as of June 30,
74,768,341.42 188,041,104.45 262,809,445.87
2022
Changes in book balance with respect to which current changes in the loss provision are significant
□applicable not applicable
271
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Disclosure by age
Unit: Yuan
Age Ending balance
Less than 1 year (inclusive) 588,005,858.79
1-2 years 213,224,418.74
2-3 years 44,497,506.71
Over 3 years 180,951,073.66
3-4 years 38,608,317.26
4-5 years 28,967,179.21
Over 5 years 113,375,577.19
Total 1,026,678,857.90
3) 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
224,228,539.94 36,062,005.23 1,559,016.02 -4,077,916.72 262,809,445.87
other
receivables
Total 224,228,539.94 36,062,005.23 1,559,016.02 -4,077,916.72 262,809,445.87
The Company’s bad debt provision for other receivables was 224,228,539.94 Yuan at the end of the previous year:
bad debt provision accrued in the current period was 36,062,005.23 Yuan;
bad debt provision charged off in the current period was 1,559,016.02Yuan.
Increase in the balance of bad debt provision in the current period (represented in negative numbers) caused by other changes
mainly include:
1) Increased of the bad debt provision by 5,292.46 Yuan due to changes in exchange rate;
2) Decreased of the bad debt provision by 641,221.01 Yuan due to changes in subsidiaries;
3) Increased of the bad debt provision by 4,713,845.27 Yuan due to charge-off by the Company prior to the current period but
which were recovered in the current period.
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4) Other receivables actually charged off in the current period
Unit: Yuan
Item Amount charged off
Other receivables actually charged off 1,559,016.02
Of which, significant charge-off of other receivables:
Unit: Yuan
Whether the
Charge-off amounts were
Nature of other Amount charged Cause of charge-
Entity Name procedure incurred by
receivables off off
performed related-party
transaction
Long time
overdue,
Han Deyin Current accounts 504,000.00 Note No
recognized as
difficult to recover
Beijing Huashang
Long time
Reserve
overdue,
Commodity Current accounts 200,000.00 Note No
recognized as
Exchange Co.,
difficult to recover
Ltd.
Long time
overdue,
Lei Xianwen Current accounts 112,914.78 Note No
recognized as
difficult to recover
Nanning EVOC Long time
Equipment overdue,
Current accounts 106,716.78 Note No
Technology Co., recognized as
Ltd. difficult to recover
Long time
overdue,
Yu Lipeng Current accounts 106,461.54 Note No
recognized as
difficult to recover
Long time
overdue,
Others Current accounts 528,922.92 Note No
recognized as
difficult to recover
Total 1,559,016.02
Remarks on other receivables 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; individua l
charged-off amount of ≥ 0.5 million Yuan is submitted to the chairman for approval.
5) Top 5 other receivables in ending balance by debtor
Unit: Yuan
Percentage in the
Ending balance of
Entity Name Nature of amount Ending balance Age total ending
bad debt provision
balance of other
273
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receivables
China Grain and
Oil Supply Co. Margin 47,442,000.00 Less than 1 year 4.62% 2,395,821.00
Ltd.
Liaoning China
Resources Ng
Margin 46,379,694.80 Less than 1 year 4.52% 2,342,174.58
Fung Marketing
Co., Ltd.
Beijing Meihao
Temporary
Meideling Food 35,000,000.00 Less than 1 year 3.41% 1,767,500.00
borrowings
Co., Ltd.
Linyi Pingyi Proceeds from
County Finance disposal of non- 32,998,213.82 Less than 1 year 3.21% 1,666,409.80
Bureau current assets
CAHIC
(Shanghai) Grain Margin 23,166,136.52 Less than 1 year 2.26% 1,169,889.89
and Oil Co., Ltd.
Total 184,986,045.14 18.02% 9,341,795.27
7. Inventories
Whether the Company is required to comply with disclosure requirements for real estate industry
No
(1) Inventories by category
Unit: Yuan
Ending balance Beginning balance
Inventory Inventory
revaluation revaluation
reserve or reserve or
Item contract contract
Book balance Book value Book balance Book value
performance performance
cost cost
impairment impairment
provision provision
5,393,182,450. 5,384,693,058. 4,643,886,902. 4,634,896,297.
Raw materials 8,489,391.44 8,990,605.03
34 90 50 47
Products in
125,780,389.74 10,168,117.25 115,612,272.49 153,303,527.56 17,458,663.58 135,844,863.98
process
4,120,100,077. 4,085,438,667. 2,698,892,199. 2,647,676,702.
Goods in stock 34,661,410.59 51,215,496.96
83 24 25 29
Revolving
96,032,542.56 215,720.63 95,816,821.93 102,395,661.79 215,720.63 102,179,941.16
materials
Consumptive
8,487,623,047. 1,323,532,007. 7,164,091,040. 9,567,981,895. 1,327,789,167. 8,240,192,728.
biological
77 23 54 69 28 41
assets
Packaging
137,675,163.00 1,307,358.58 136,367,804.42 144,816,448.62 1,195,863.57 143,620,585.05
materials
Low-value
15,178,945.33 15,178,945.33 20,938,907.75 20,938,907.75
consumables
Outsourced
processed 319,462.75 319,462.75 220,775.50 220,775.50
materials
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18,375,892,079 1,378,374,005. 16,997,518,073 17,332,436,318 1,406,865,517. 15,925,570,801
Total
.32 72 .60 .66 05 .61
(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 8,990,605.03 438,802.87 916,166.12 23,850.34 8,489,391.44
Products in
17,458,663.58 10,159,996.39 17,450,542.72 10,168,117.25
process
Goods in stock 51,215,496.96 41,692,475.56 58,246,561.93 34,661,410.59
Revolving
215,720.63 215,720.63
materials
Consumptive
1,327,789,167. 1,301,725,887. 1,305,986,428. 1,323,532,007.
biological 3,380.85
28 77 67 23
assets
Packaging
1,195,863.57 328,465.72 216,970.71 1,307,358.58
materials
1,406,865,517. 1,354,345,628. 1,382,816,670. 1,378,374,005.
Total 3,380.85 23,850.34
05 31 15 72
8. Other current assets
Unit: Yuan
Item Ending balance Beginning balance
VAT input tax to be deducted 75,394,569.80 70,259,700.20
Taxes prepaid 83,721,688.78 63,252,723.04
Interest receivable on time deposits 100,466,601.66 47,026,108.30
Others 1,084,107.94 1,084,107.94
Total 260,666,968.18 181,622,639.48
Other remarks:
The “Others” item mainly consists of the feed payment prepaid for cooperative pig farming by Daqing Liuhe Feed Co., Ltd., an
indirectly majority-owned subsidiary of the Company.
9. Long-term equity investment
Unit: Yuan
Current increase or decrease Ending
Beginni Profit Adjust Cash balance
Impair Ending
ng Additio Reduce or loss ment dividen of
Investe Other ment balance
balance nal d on for ds or impair
d entity equity provisi Others (book
(book investm investm investm other profits ment
changes on value)
value) ent ent ent compre declare provisi
accrued on
recogni hensive d for
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zed income distribu
using tion
the
equity
method
I. Joint ventures
Taishan
Jiaxin
Logisti
cs Co.,
Ltd.
Beijing
Meihao
Meideli -
27,662, 12,177,
ng 15,485,
705.47 565.71
Food 139.76
Co.,
Ltd.
Anhui
Xinqiao
27,667, 352,769 28,020,
Down
263.15 .77 032.92
Co.,
Ltd.
Yan’an
Xinyon
gxiang -
39,084, 38,696,
Technol 387,882
425.27 542.83
ogy .44
Co.,
Ltd.
Guangd
ong
Hope
No.1
-
Equity 532,149 508,125
24,024,
Investm ,368.01 ,078.53
289.48
ent
Partner
ship
(LP)
Shenya
ng New
Hope
New
Agricul -
686,833 682,667
tural 4,166,5
,671.76 ,169.93
Industr 01.83
y Fund
Partner
ship
(LP)
Hainan
Nongke
-
n New 117,720 114,750
2,970,6
Hope ,891.92 ,254.04
37.88
Farmin
g
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Technol
ogy
Co.,
Ltd.
Zhanjia
ng
Guangk
-
en 110,416 109,705
710,850
Xinhao ,083.81 ,232.93
.88
Farmin
g Co.,
Ltd.
Shando
ng
Gongro
ng New
Hope
-
Equity 301,283 6,941,3 291,842
2,499,6
Investm ,206.51 47.23 ,174.41
84.87
ent
Fund
Partner
ship
(LP)
1,842,8 - 1,785,9
Subtota 6,941,3
17,615. 49,892, 84,051.
l 47.23
90 217.37 30
II. Affiliates
China
20,787, 1,028,8 - 21,380,
Minshe 389,433
577,984 58,242. 46,394, 608,194
ng ,782.83
.00 00 249.00 .17
Bank
Guangz
hou
3,272,6 83,177. 3,355,7
Chimia
17.42 05 94.47
n Co.,
Ltd.
NHE
(Beijin
g)
9,276,0 116,483 9,392,5
Technol
16.64 .55 00.19
ogy
Co.,
Ltd.
Qianxin
an
Hope 13,027, 362,761 13,390,
Farmin 263.59 .37 024.96
g Co.,
Ltd.
Hebei
Kinghe
y
3,798,7 3,798,7
Sausag
91.34 91.34
e
Casings
Co.,
277
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Ltd.
New
Hope 1,318,7
774,417 800,000 24,317, 10,707. 280,000
Finance 45,592.
,067.40 ,000.00 817.20 89 ,000.00
Co., 49
Ltd.
Nanjing
Heda
Food 0.00 0.00
Co.,
Ltd.
Qingda
o Big
Herdsm
225,504 35,442, 1,323,5 58,218, 204,051
an
,715.49 393.92 62.02 750.00 ,921.43
Machin
ery Co.,
Ltd.
Anhui
Xinhua
2,732,4 2,732,4
Ducks
74.04 74.04
Co.,
Ltd.
Shangh
ai
Liuhe -
37,072, 13,638, 50,022,
Qinqian 688,839
134.11 872.00 166.29
g Food .82
Co.,
Ltd.
Beijing
CERES
Agricul
tural 400,000 400,000
Develo .00 .00
pment
Co.,
Ltd.
Shando
ng
Hypor -
23,090, 15,385,
Liuhe 7,705,3
850.00 500.00
Breedin 50.00
g Co.,
Ltd.
Anhui
Antai
Agricul
-
tural 53,829, 50,128,
3,700,2
Develo 194.69 952.00
42.69
pment
Co.,
Ltd.
Nanton
-
g 16,199, 15,959,
240,387
Yunfan 433.58 045.94
.64
Networ
278
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k
Technol
ogy
Co.,
Ltd.
Xinzhi
Huide
Machin
-
ery 46,731, 46,213,
518,345
Technol 347.17 001.47
.70
ogy
Co.,
Ltd.
21,996, 1,076,3 - 23,114,
Subtota 800,000 14,962, 727,652
929,889 27,709. 46,383, 183,958
l ,000.00 434.02 ,532.83
.47 24 541.11 .79
23,839, 1,026,4 - 24,900,
800,000 14,962, 734,593
Total 747,505 35,491. 46,383, 168,010
,000.00 434.02 ,880.06
.37 87 541.11 .09
Other remarks
Note: As the net assets of Nanjing Heda Food Co., Ltd. and Taishan Jiaxin Logistics Co., Ltd. Were negative, the Company wrote
the investment cost down to 0 using the equity method.
10. Investments in other equity instruments
Unit: Yuan
Project 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
7,020,000.00 7,020,000.00
Bank 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 Reasons for
other designation to transferring
Dividend
Accumulated Accumulated comprehensive be measured at other
Project income
earnings losses income fair value comprehensive
recognized
transferred to through other income to
retained comprehensive retained
279
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earnings income earnings
Minsheng Life
Insurance Co., Note
Ltd.
Sinograin
Laizhou
Fenghe Note
Logistics Co.,
Ltd.
Ziyang
Agricultural
Industrializatio
Note
n Credit
Guarantee Co.,
Ltd.
Zhucheng
Liuhe Oriental Note
Food Co., Ltd.
Beijing
Baiyitong
Note
Technology
Co., Ltd.
HEcom
(Beijing)
Note
Technology
Co., Ltd.
Shaanxi
Yangling Rural
Note
Commercial
Bank Co., Ltd.
Hebei Xingda
Feed Group Note
Co., Ltd.
Guobao Life
Insurance Co., Note
Ltd.
Fengshun New
Hope
Note
Biotechnology
Co., Ltd.
Meigu Arsha
Planting &
Farming Note
Specialized
Cooperatives
Other remarks:
Note: investment in equity instruments 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 financia l
assets at fair value and through other comprehensive income on the date of first adoption of new financial instrument standards.
280
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11. Investment properties
(1) Investment properties measured at cost
applicable □not applicable
Unit: Yuan
Construction in
Item Houses and buildings Land use right Total
progress
I. Original book value
1. Beginning
198,015,257.79 198,015,257.79
balance
2. Current
8,346,033.36 8,346,033.36
increase
(1)
Purchased
(2)
Transferred from
inventory/fixed 8,346,033.36 8,346,033.36
assets/construction in
progress
(3) Increase
due to business
combination
3. Current
decrease
(1) Disposed
(2) Other
transfer-out
4. Ending balance 206,361,291.15 206,361,291.15
II. Accumulated
depreciation and
accumulated
amortization
1. Beginning
22,434,741.07 22,434,741.07
balance
2. Current
6,249,248.65 6,249,248.65
increase
(1)
Depreciated or 4,480,270.94 4,480,270.94
amortized
(2) Transferred from
inventory/fixed
1,768,977.71 1,768,977.71
assets/construction in
progress
3. Current
decrease
(1) Disposed
(2) Other
281
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transfer-out
4. Ending balance 28,683,989.72 28,683,989.72
III. Impairment
provision
1. Beginning
balance
2. Current
increase
(1) Accrued
3. Current
decrease
(1) Disposed
(2) Other
transfer-out
4. Ending balance
IV. Book value
1. Ending book
177,677,301.43 177,677,301.43
value
2. Beginning book
175,580,516.72 175,580,516.72
value
(2) Investment properties measured at fair value
□applicable not applicable
(3) Investment properties with title certificates pending
Unit: Yuan
Item Book value Why title certificate pending
Self-built houses on leased land 100,719,930.77 Title cannot be secured for leased land
Other remarks
12. Fixed assets
Unit: Yuan
Item Ending balance Beginning balance
Fixed assets 34,510,941,192.04 33,736,433,722.76
Disposal of fixed assets 44,235.95 44,235.95
Total 34,510,985,427.99 33,736,477,958.71
(1) Details of fixed assets
Unit: Yuan
282
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Houses and Machinery and Transport
Item Others Total
buildings equipment equipment
I. Original book
value:
1. Beginning
25,074,124,764.16 14,992,778,465.45 1,159,706,898.78 1,443,785,546.66 42,670,395,675.05
balance
2. Current
1,173,175,265.04 778,229,092.77 34,521,035.82 80,531,786.94 2,066,457,180.57
increase
(1)
19,922,667.67 137,107,854.05 31,661,722.08 68,358,622.49 257,050,866.29
Purchased
(2)
Transferred from
1,101,838,056.26 604,185,874.95 572,341.16 10,681,818.45 1,717,278,090.82
construction in
progress
(3)
Increase due to
business
combination
(4) Exchange rate
51,414,541.11 36,935,363.77 2,286,972.58 1,491,346.00 92,128,223.46
changes
3. Current
56,481,648.98 67,235,043.73 16,353,453.76 18,282,680.39 158,352,826.86
decrease
(1)
Disposed or 8,067,058.14 35,787,623.77 13,617,442.06 15,477,201.81 72,949,325.78
scrapped
(2) Exchange rate
41,383,347.89 31,447,419.96 2,736,011.70 2,805,478.58 78,372,258.13
changes
(3) Technical
renovation
(4) Transferred to
investment 7,031,242.95 7,031,242.95
properties
4. Ending
26,190,818,380.22 15,703,772,514.49 1,177,874,480.84 1,506,034,653.21 44,578,500,028.76
balance
II. Accumulated
depreciation
1. Beginning
3,510,981,263.93 4,401,376,700.45 304,019,588.06 658,835,801.51 8,875,213,353.95
balance
2. Current
461,747,985.28 549,450,095.62 54,323,474.55 130,207,115.02 1,195,728,670.47
increase
(1)
454,579,989.47 539,211,099.20 53,309,157.31 129,494,694.86 1,176,594,940.84
Accrued
(2) Exchange rate
7,167,995.81 10,238,996.42 1,014,317.24 712,420.16 19,133,729.63
changes
3. Current
15,747,801.92 26,912,199.69 9,994,050.88 9,434,052.61 62,088,105.10
decrease
(1)
Disposed or 7,144,158.39 15,931,256.35 8,684,144.27 8,122,910.41 39,882,469.42
scrapped
(2) Exchange rate
6,834,665.82 10,980,943.34 1,309,906.61 1,311,142.20 20,436,657.97
changes
(3) Technical
283
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renovation
(4) Transferred to
investment 1,768,977.71 1,768,977.71
properties
4. Ending
3,956,981,447.29 4,923,914,596.38 348,349,011.73 779,608,863.92 10,008,853,919.32
balance
III. Impairment
provision
1. Beginning
39,546,979.77 18,258,675.39 105,118.24 837,824.94 58,748,598.34
balance
2. Current
increase
(1)
Accrued
(2) Exchange rate
changes
3. Current
43,680.94 43,680.94
decrease
(1)
Disposed or 5,028.43 5,028.43
scrapped
(2) Exchange rate
38,652.51 38,652.51
changes
(3) Technical
renovation
(4) Transferred to
investment
properties
4. Ending
39,546,979.77 18,214,994.45 105,118.24 837,824.94 58,704,917.40
balance
IV. Book value
1. Ending
22,194,289,953.16 10,761,642,923.66 829,420,350.87 725,587,964.35 34,510,941,192.04
book value
2. Beginning
21,523,596,520.46 10,573,143,089.61 855,582,192.48 784,111,920.21 33,736,433,722.76
book value
(2) Fixed assets temporarily idle
Unit: Yuan
Original book Accumulated Impairment
Item Book value Remarks
value depreciation provision
Houses and
126,795,242.21 60,452,625.88 36,438,205.60 29,904,410.73
buildings
Machinery and
104,081,667.49 79,955,880.84 17,833,518.89 6,292,267.76
equipment
Others 8,766,546.78 7,638,417.54 804,434.01 323,695.23
Total 239,643,456.48 148,046,924.26 55,076,158.50 36,520,373.72
(3) Fixed assets leased under operating lease
Unit: Yuan
284
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Item Ending book value
General office buildings and production equipment 23,403,099.64
(4) Fixed assets with title certificate pending
Unit: Yuan
Item Book value Why title certificate pending
Filling and completion formalities to be
Self-built houses on self-owned land 823,744,957.42
perfected
Self-built houses on leased land 10,909,616,319.32 Title cannot be secured for leased land
Houses with title transfer pending 48,132,223.28
Others 1,464,980.03 Dilapidated houses
Total 11,782,958,480.05
Other remarks
(5) Disposal of fixed assets
Unit: Yuan
Item Ending balance Beginning balance
Disposal of equipment 44,235.95 44,235.95
Total 44,235.95 44,235.95
Other remarks:
13. Construction in progress
Unit: Yuan
Item Ending balance Beginning balance
Construction in progress 20,884,951,109.11 19,344,062,541.99
Engineering materials 17,186.70 3,416.40
Total 20,884,968,295.81 19,344,065,958.39
(1) Construction in progress
Unit: Yuan
Ending balance Beginning balance
Project Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Feed plant
reconstruction 1,199,099,024. 1,199,099,024.
967,846,820.32 967,846,820.32
and expansion 06 06
project
Food
processing
reconstruction 480,024,577.75 480,024,577.75 406,892,316.30 406,892,316.30
and expansion
project
285
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Breeding
company plant
19,164,980,054 19,164,980,054 17,930,777,911 17,930,777,911
reconstruction
.97 .97 .12 .12
and expansion
project
Others 40,847,452.33 40,847,452.33 38,545,494.25 38,545,494.25
20,884,951,109 20,884,951,109 19,344,062,541 19,344,062,541
Total
.11 .11 .99 .99
(2) Current changes in key construction projects in progress
Unit: Yuan
Amou Where
Percen Accum
nt in: Curren
tage of ulated
transfe current t
Beginn Curren Curren accum amoun Source
rred to Ending Project amoun interes
Project ing t t other ulated t of of
Budget fixed balanc progre t of t
name balanc increas decrea project capital fundin
assets e ss interes capital
e e se input ized g
in the t ization
in interes
current capital rate
budget t
period ized
New
pig
farms
built 2,265, 503,98 20,772 515,30 17,270
9,452, 23.17 20.00 7,670,
by 120,00 0,474. ,966.7 1,147. ,049.5 4.15% Others
294.61 % % 760.28
Guang' 0.00 87 9 05 5
an
Xinha
o
New
pig
farms
1,158, 775,77 73,142 848,92 67,764 20,082
built 73.30 73.00
171,00 8,312. ,591.8 0,904. ,032.5 ,017.8 4.38% Others
by % %
0.00 79 0 59 8 3
Wuhe
New
Hope
New
pig
farms
built 1,000, 669,87 92,785 762,66 44,128 13,834
76.27 75.00
by 000,00 4,723. ,853.4 0,577. ,485.2 ,066.5 3.85% Others
% %
Zhang 0.00 65 4 09 6 3
wu
Xinwa
ng
New
pig
farms 949,39 85,323 16,740 102,06
10.75 10.00 8,106, 3,224,
built 7,700. ,489.1 ,955.9 4,445. 3.85% Others
% % 515.83 940.24
by 00 6 5 11
Lijin
Xinliu
New 788,70 127,15 40,254 100,03 167,30 21.23 30.00 38,395 9,208,
4.01% Others
pig 0,000. 3,710. ,416.2 8.98 8,087. % % ,999.3 206.76
286
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farms 00 06 0 28 9
built
by
Hubei
Xinha
o
New
pig
farms
built 645,80 274,73 25,886 300,57 25,706 10,283
43,599 46.55 84.00
by 0,000. 6,632. ,212.9 9,245. ,293.2 ,315.5 4.41% Others
.56 % %
Chenz 00 40 8 82 0 0
hou
Xinha
o
New
pig
farms
600,00 229,79 21,313 157,00 94,101 39,907
built 41.85 40.00 7,607,
0,000. 8,282. ,238.6 9,888. ,632.6 ,505.4 3.85% Others
by % % 219.93
00 51 6 50 7 3
Weina
n
Xinliu
New
pig
farms
621,65 432,97 60,788 493,76
built 79.43 79.00 8,816, 3,982,
0,000. 7,303. ,950.5 6,254. 4.00% Others
by % % 876.61 687.74
00 72 0 22
Longh
ai New
Hope
New
pig
farms
620,00 500,13 88,724 588,86 21,280
built 94.98 95.00 8,518,
0,000. 8,610. ,118.3 2,728. ,594.6 4.13% Others
by % % 215.34
00 41 0 71 8
Beijin
g
Xinliu
New
pig
farms
built 202,32 48,364 10,965 59,329 10,171
29.32 29.32 2,920,
by 9,000. ,164.3 ,359.3 ,523.6 ,215.6 4.65% Others
% % 746.66
Nanni 00 7 1 8 2
ng
Xinha
o
8,851, 3,648, 451,37 166,60 3,932, 281,54 87,332
Total 167,70 125,70 4,663. 5,821. 894,54 7,568. ,176.8
0.00 3.94 93 65 6.22 15 1
(3) Engineering materials
Unit: Yuan
287
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Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Special
17,186.70 17,186.70 3,416.40 3,416.40
materials
Total 17,186.70 17,186.70 3,416.40 3,416.40
Other remarks:
14. Productive biological assets
(1) Productive biological assets measured at cost
applicable □not applicable
Unit: Yuan
Planting Aquatic
Livestock breeding business Forestry
Item business business Total
Immature Matured
I. Original book
value:
1.
2,373,056,535. 8,441,500,911. 10,814,557,446
Beginning
62 31 .93
balance
2. Current 3,442,777,592. 1,512,781,017. 4,955,558,610.
increase 60 86 46
(1)
110,211,133.37 710,665.49 110,921,798.86
Purchased
(2) In-
3,331,532,854. 1,505,156,363. 4,836,689,217.
house
17 64 81
cultivation
(3) Increase due
to business 0.00
combination
(4) Exchange
1,033,605.06 6,913,988.73 7,947,593.79
rate changes
(5) Others 0.00
3. Current 3,029,610,024. 2,565,360,802. 5,594,970,826.
decrease 50 10 60
(1) 1,522,975,244. 2,537,730,429. 4,060,705,673.
Disposal 21 74 95
(2)
0.00
Others
(3) Decrease in
0.00
subsidiaries
(4) Exchange
1,478,416.65 2,144,929.15 3,623,345.80
rate changes
(5) Herd
1,505,156,363. 1,530,641,806.
transfer and 25,485,443.21
64 85
molting
4. Ending 2,786,224,103. 7,388,921,127. 10,175,145,230
288
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balance 72 07 .79
II.
Accumulated 0.00
depreciation
1.
1,713,952,109. 1,713,952,109.
Beginning
10 10
balance
2. Current 1,196,892,238. 1,196,892,238.
increase 51 51
(1) 1,194,135,945. 1,194,135,945.
Accrued 60 60
(2) Increase due
to business 0.00
combination
(3) Exchange
2,756,292.91 2,756,292.91
rate changes
(4) Others 0.00
3. Current 1,082,558,353. 1,082,558,353.
decrease 81 81
(1) 1,062,334,801. 1,062,334,801.
Disposal 73 73
(2)
0.00 0.00
Others
(3) Decrease in
0.00
subsidiaries
(4) Exchange
541,118.41 541,118.41
rate changes
(5) Herd
transfer and 19,682,433.67 19,682,433.67
molting
4. Ending 1,828,285,993. 1,828,285,993.
balance 80 80
III. Impairment
0.00
provision
1.
Beginning 108,610,974.16 80,235,939.74 188,846,913.90
balance
2. Current
0.00 70,307,753.89 70,307,753.89
increase
(1)
0.00
Accrued
(2) Increase due
70,307,753.89 70,307,753.89
to herd transfer
3. Current
82,139,305.10 33,985,609.10 116,124,914.20
decrease
(1)
11,831,551.21 33,985,609.10 45,817,160.31
Disposal
(2)
0.00
Others
(3) Decrease
due to herd 70,307,753.89 70,307,753.89
transfer
289
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4. Ending
26,471,669.06 116,558,084.53 143,029,753.59
balance
IV. Book value
1. Ending 2,759,752,434. 5,444,077,048. 8,203,829,483.
book value 66 74 40
2.
2,264,445,561. 6,647,312,862. 8,911,758,423.
Beginning book
46 47 93
value
(2) Productive biological assets measured at fair value
□applicable not applicable
15. Right-of-use assets
Unit: Yuan
Machinery
Houses and Transport
Item and Land Overall lease Others Total
buildings equipment
equipment
I. Original
book value
1.
359,636,129. 22,890,405.1 3,823,473,35 3,062,713,14 7,271,837,11
Beginning 1,222,737.06 1,901,339.55
51 9 9.02 2.78 3.11
balance
2.
44,882,095.6 149,650,800. 591,585,542. 786,118,438.
Current
5 10 31 06
increase
3.
32,438,194.8 96,240,469.2 639,263,762. 768,252,506.
Current 310,079.86
9 8 41 44
decrease
4.
372,080,030. 22,890,405.1 3,876,883,68 3,015,034,92 7,289,703,04
Ending 912,657.20 1,901,339.55
27 9 9.84 2.68 4.73
balance
II.
Accumulated
depreciation
1.
72,374,895.3 162,419,449. 399,641,662. 638,819,188.
Beginning 3,578,380.89 394,707.17 410,092.84
7 05 80 12
balance
2.
46,690,334.9 104,305,731. 275,980,764. 429,727,595.
Current 2,420,890.44 106,187.47 223,687.02
9 48 34 74
increase
(1) 46,636,304.2 104,283,983. 275,824,910. 429,495,963.
2,420,890.44 106,187.47 223,687.02
Accrued 6 70 63 52
(2) Exchange
54,030.73 21,747.78 155,853.71 231,632.22
rate changes
(3) Other
Increase
3. 10,476,974.7 77,519.96 14,117,589.5 113,517,397. 138,189,481.
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Current 3 0 19 38
decrease
(1) 10,476,974.7 110,756,775. 127,020,606.
77,519.96 5,709,335.78
Disposed 3 91 38
(2) Exchange
56,726.50 61,310.76 118,037.26
rate changes
(3) Other 11,050,837.7
8,351,527.22 2,699,310.52
decrease 4
4.
108,588,255. 252,607,591. 562,105,029. 930,357,302.
Ending 5,999,271.33 423,374.68 633,779.86
63 03 95 48
balance
III.
Impairment
provision
1.
Beginning
balance
2.
Current
increase
(1)
Accrued
3.
Current
decrease
(1)
Disposed
4.
Ending
balance
IV. Book
value
1.
263,491,774. 16,891,133.8 3,624,276,09 2,452,929,89 6,359,345,74
Ending book 489,282.52 1,267,559.69
64 6 8.81 2.73 2.25
value
2.
287,261,234. 19,312,024.3 3,661,053,90 2,663,071,47 6,633,017,92
Beginning 828,029.89 1,491,246.71
14 0 9.97 9.98 4.99
book value
Other remarks:
16. Intangible assets
(1) Details of intangible assets
Unit: Yuan
Non-patented
Item Land use right Patents Others Total
technology
291
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I. Original book
value
1. Beginning
1,835,678,272.17 4,516,777.06 633,765,327.78 2,473,960,377.01
balance
2. Current
47,053,238.89 8,630,770.36 55,684,009.25
increase
(1)
33,894,499.76 8,611,818.27 42,506,318.03
Purchased
(2) In-
0.00
house R&D
(3)
Increase due to
5,403,708.74 5,403,708.74
business
combination
(4) Exchange rate
7,755,030.39 18,952.09 7,773,982.48
changes
3. Current
7,107,651.79 114,987.29 7,222,639.08
decrease
(1)
109,650.00 109,650.00
Disposed
(2) Exchange rate
7,107,651.79 5,337.29 7,112,989.08
changes
4. Ending
1,875,623,859.27 4,516,777.06 642,281,110.85 2,522,421,747.18
balance
II. Accumulated
amortization
1. Beginning
304,159,295.47 1,427,292.73 309,131,489.98 614,718,078.18
balance
2. Current
19,380,339.38 1,715,649.18 0.00 29,761,429.37 50,857,417.93
increase
(1)
18,536,252.35 1,715,649.18 29,742,477.28 49,994,378.81
Accrued
(2) Increase due to
business 0.00
combination
(3) Exchange rate
844,087.03 18,952.09 863,039.12
changes
3. Current
624,415.85 0.00 0.00 114,602.48 739,018.33
decrease
(1)
0.00 109,650.00 109,650.00
Disposed
(2) Exchange rate
624,415.85 4,952.48 629,368.33
changes
4. Ending
322,915,219.00 3,142,941.91 338,778,316.87 664,836,477.78
balance
III. Impairment
0.00
provision
1. Beginning
0.00
balance
2. Current
0.00
increase
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(1)
0.00
Accrued
3. Current
0.00
decrease
(1)
0.00
Disposed
4. Ending
0.00
balance
IV. Book value 0.00
1. Ending
1,552,708,640.27 1,373,835.15 0.00 303,502,793.98 1,857,585,269.40
book value
2. Beginning
1,531,518,976.70 3,089,484.33 324,633,837.80 1,859,242,298.83
book value
Percentage of the intangible assets resulting from in-house research and development of the Company at the end of this period in
the balance of intangible assets: 0.10%
(2) Land use right with certificate of title pending
Unit: Yuan
Project Book value Why title certificate pending
Hanzhong New Hope Liuhe Farming Incomplete paperwork, in the process of
10,877,193.31
Technology Co., Ltd. securing permits
Incomplete paperwork, in the process of
Liuhe Feed (Huai'an) Co., Ltd. 4,077,859.32
securing permits
Incomplete paperwork, in the process of
Wudi Liuhe Xinyang Food Co., Ltd. 2,733,333.32
securing permits
Incomplete paperwork, in the process of
Ganzhou Hope Feed Co., Ltd. 2,293,347.24
securing permits
Incomplete paperwork, in the process of
Fuxin Liuhe Farming Co., Ltd. 1,970,065.78
securing permits
Incomplete paperwork, in the process of
Linshu Liuhe Feed Co., Ltd. 1,631,131.43
securing permits
Total 23,582,930.40
Other remarks
17. Goodwill
(1) Original book value of goodwill
Unit: Yuan
Name of
invested
Beginning
entities or event Current increase Current decrease Ending balance
balance
forming
goodwill
Name of Beginning Formed due to
Disposal Ending balance
invested balance business
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entities or event combination
forming
goodwill
New Hope
Liuhe
58,567,474.80 58,567,474.80
Investment Co.,
Ltd.
Beijing
Kinghey Food 19,091,431.45 19,091,431.45
Co., Ltd.
Chengdu
Fenglan
36,276,456.48 36,276,456.48
Technology
Co., Ltd.
Chengdu
Century
398,573,665.34 398,573,665.34
Investment Co.,
Ltd.
Beijing
Porridge Jiahe
Enterprise 80,314,997.56 80,314,997.56
Management
Co., Ltd.
Hefei Huaren
Farming Group 6,118,302.82 6,118,302.82
Co., Ltd.
Xiantao Liuhe
422,276.77 422,276.77
Feed Co., Ltd.
Sheyang Liuhe
2,194,351.61 2,194,351.61
Feed Co., Ltd.
Anhui Wanxi
White Goose
1,958,093.80 1,958,093.80
Stock Seed
Farm Co., Ltd.
Linxi Hexing
3,535,449.75 3,535,449.75
Feed Co., Ltd.
Yangling Besun
Agricultural
280,514,799.76 280,514,799.76
Industry Group
Co., Ltd.
Weinan
Zhengneng
Farming 19,920,121.97 19,920,121.97
Technology
Co., Ltd.
Laiyang Xinmu
Breeding Co., 251,371,600.00 251,371,600.00
Ltd.
Zhengzhou
Quansheng
Farming 98,349,399.05 98,349,399.05
Technology
Co., Ltd.
1,257,208,421. 1,257,208,421.
Total
16 16
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(2) Provision for goodwill impairment
Unit: Yuan
Name of
invested
Beginning
entities or event Current increase Current decrease Ending balance
balance
forming
goodwill
Name of
invested
Beginning
entities or event Accrued Disposal Ending balance
balance
forming
goodwill
Beijing
Kinghey Food 10,418,225.09 10,418,225.09
Co., Ltd.
Hefei Huaren
Farming Group 6,118,302.82 6,118,302.82
Co., Ltd.
Xiantao Liuhe
422,276.77 422,276.77
Feed Co., Ltd.
Anhui Wanxi
White Goose
1,958,093.80 1,958,093.80
Stock Seed
Farm Co., Ltd.
Linxi Hexing
3,535,449.75 3,535,449.75
Feed Co., Ltd.
Laiyang Xinmu
Breeding Co., 24,784,849.84 24,784,849.84
Ltd.
Total 47,237,198.07 47,237,198.07
Information about asset group or asset group portfolio to which goodwill belongs
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 method for
recognition of goodwill impairment loss:
Method for goodwill impairment test: based on comparison between the present value of future recoverable cash flow of asset
group to which goodwill belongs and the sum of the existing book net asset value of assets group and the value after restoration of
goodwill of minority shareholders.
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.
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:
18. Long-term unamortized expenses
Unit: Yuan
Item Beginning balance Current increase Current amount Other decreases Ending balance
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amortized
Expenditure on
improvement of 157,900,952.22 11,735,543.53 35,689,205.12 12,037.89 133,935,252.74
assets
Rental of
3,448,351.71 329,608.62 1,308,545.40 14,343.48 2,455,071.45
equipment
Others 80,283,027.20 29,550,968.73 42,601,717.15 1,645,498.57 65,586,780.21
Total 241,632,331.13 41,616,120.88 79,599,467.67 1,671,879.94 201,977,104.40
Other remarks
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
Asset impairment
317,300,539.59 75,252,815.38 287,449,253.16 67,728,805.98
provision
Profits unrealized
through internal 176,669,616.70 42,493,346.12 184,155,845.49 44,401,561.40
transactions
Deductible loss 1,023,179,196.67 242,540,562.60 1,032,568,255.59 250,213,704.87
Change in fair value of
held-for-trading 3,945,578.13 939,596.43 5,545,161.02 320,242.04
financial assets
Guarantee indemnity
reserve and deferred 55,606,844.23 11,211,883.65 48,512,736.41 11,583,208.02
income, etc.
Total 1,576,701,775.32 372,438,204.18 1,558,231,251.67 374,247,522.31
(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
held-for-trading 85,736,866.55 4,286,843.33 19,658,049.74 1,634,495.09
financial assets
Taxable value of assets
291,447,226.25 71,999,448.15 298,040,435.37 73,629,668.85
lower than book value
Total 377,184,092.80 76,286,291.48 317,698,485.11 75,264,163.94
(3) Deferred income tax assets or liabilities presented by net amount after offset
Unit: Yuan
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Ending amount Beginning amount
Ending balance of Beginning balance of
mutually offset mutually offset
deferred income tax deferred income tax
Item between deferred between deferred
assets or liabilities after assets or liabilities after
income tax assets and income tax assets and
offset offset
liabilities liabilities
Deferred income tax
54,228.83 372,383,975.35 1,120,148.16 373,127,374.15
assets
Deferred income tax
54,228.83 76,232,062.65 1,120,148.16 74,144,015.78
liabilities
(4) Details of unrecognized deferred income tax assets
Unit: Yuan
Item Ending balance Beginning balance
Deductible loss 3,133,101,147.16 2,393,460,358.29
Asset impairment provision 270,125,514.25 439,328,105.18
Total 3,403,226,661.41 2,832,788,463.47
(5) Deductible losses on unrecognized deferred income tax assets will become due in the following years
Unit: Yuan
Year Ending amount Beginning amount Remarks
2022 111,100,900.38
2023 371,448,205.44 396,993,549.89
2024 251,840,954.59 278,597,847.50
2025 531,241,903.86 536,813,091.95
2026 1,048,900,187.58 1,069,954,968.57
2027 929,669,895.69
Total 3,133,101,147.16 2,393,460,358.29
Other remarks
20. Other non-current assets
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Amounts
prepaid for
687,962,145.30 687,962,145.30 692,856,958.06 692,856,958.06
long-term
assets
VAT input tax
501,870,752.69 501,870,752.69 576,245,050.75 576,245,050.75
to be deducted
1,189,832,897. 1,189,832,897. 1,269,102,008. 1,269,102,008.
Total
99 99 81 81
Other remarks:
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21. Short-term borrowings
(1) Short-term borrowings by category
Unit: Yuan
Item Ending balance Beginning balance
Pledge loans 10,000,000.00
Mortgage loans 95,906,208.00 93,503,892.00
Guaranteed loans 3,370,201,321.38 2,040,775,949.21
Credit loans 8,292,179,026.71 5,971,386,771.32
Borrowings against bill discounting 7,161,750,554.28 6,672,989,290.54
Borrowings against L/C discounting 220,012,178.93 92,179,958.93
Negotiable credit certificate of accounts
106,999,926.82 107,910,091.37
receivable
Factoring of accounts receivable 549,368,932.96 168,401,670.00
Plus: interest payable on borrowings 24,641,264.68 12,210,972.26
Total 19,831,059,413.76 15,159,358,595.63
Remarks on categorization of short-term borrowings:
(1) The pledge loans and pledges are presented as follows:
Pledge details Amount of pledge loan
Pledge of notes receivable of Yanggu New Hope Liuhe Luxin Feed Co., Ltd. 10,000,000.00
Total 10,000,000.00
(2) The mortgage loans and asset mortgages are presented as follows:
Original book Amount of
Collaterals
value of collateral mortgage loan
Hogs of Yangling Besun Agricultural Industry Group Co., Ltd. 18,499,549.23 11,000,000.00
Land and house properties of New Hope Turkey Feed and Farming Food Import &
3,701,635.81 6,406,208.00
Export and Industry Ltd.
Land and house properties of Wuhan Guoxiong Feed Technology Co., Ltd. 27,460,498.29 10,000,000.00
Land and house properties of Wuwei Hope Feed Co., Ltd. 14,517,979.34 10,000,000.00
Land and house properties of Huai’an New Hope Feed Co., Ltd. 15,543,821.00 10,000,000.00
Land and house properties of Anhui Baixin Feed Co., Ltd. 1,838,000.00 9,500,000.00
Land and house properties of Hefei Huameng Biotechnology Co., Ltd. 15,912,042.60 5,000,000.00
House properties of Huzhou Haihuang Biotechnology Co., Ltd. 21,429,770.89 15,000,000.00
House properties of Chongqing Guoxiong Feed Co., Ltd. 14,708,498.45 19,000,000.00
Total 133,611,795.61 95,906,208.00
(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 Guanghan Guoxiong Feed Co., Ltd. 10,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. For Kunming New Hope Agricultural Technology Co.,
30,000,000.00
Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Kunming New Hope Animal Nutritious Food Co.,
80,000,000.00
Ltd.
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Guarantee provided by New Hope Liuhe Co., Ltd. for Huanggang New Hope Feed Technology Co., Ltd. 10,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Xiangyang New Hope Liuhe Feed Co., Ltd. 10,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Guangzhou Liuhe Feed Co., Ltd. 50,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Laiwu New Hope Liuhe Food Co., Ltd. 10,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Linyi Liuhe Food Co., Ltd. 10,000,000.00
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 Zhejiang Yihai Agricultural Development Co. Ltd. 30,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for New Hope Singapore Pte. Ltd. 1,525,195,426.60
Guarantee provided by New Hope Liuhe Co., Ltd. for Naning Guoxiong Technology Co., Ltd. 19,500,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Ganzhou Hope Feed Co., Ltd. 10,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Nanning New Hope Farming Technology 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 Hebei Kinghey Meat Industry Co., Ltd. 150,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Qingdao Liuhe Feed Co., Ltd. 8,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Hubei Tuanfeng New Hope Feed Co., Ltd. 10,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. For Yuncheng Dingtai Feed Co., Ltd. 10,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Changchun New Hope Feed Co., Ltd. 184,000,000.00
Guarantee provided by Liu’an Financing Guarantee Co., Ltd. for Anhui Xinhua Animal Husbandry Co., Ltd. 10,000,000.00
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 Guiyang New Hope Agricultural Technology Co.,
70,000,000.00
Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Sichuan New Hope Animal Nutrition Technology Co.,
426,039,562.02
Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Guangdong Jiahao Agricultural Products Co., Ltd. 10,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Beijing Kinghey Food Co., Ltd. 50,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Liaoning Xinwang Technology Co., Ltd. 50,500,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Laixi New Hope Liuhe Farming Co., Ltd. 20,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Wuhe New Hope Liuhe Livestock Co., Ltd. 30,000,000.00
Guarantee provided by New Hope Liuhe Co., Ltd. for Xiaoyi New Hope Liuhe Food Co., Ltd. 200,000,000.00
Guarantee provided by New Hope Singapore Pte. Ltd. for New Hope Tarlarc Agriculture Inc. 23,786,289.15
Guarantee provided by New Hope Singapore Pte. Ltd. for New Hope Isabela Agriculture Inc. 8,660,648.87
Guarantee provided by New Hope Singapore Pte. Ltd. for New Hope Central Luzon Agriculture Inc. 29,519,394.74
Guarantee provided by Anhui Agricultural Credit Financing Guarantee Co., Ltd. and Feidong SME
35,000,000.00
Financing Guarantee Co., Ltd. for Anhui New Hope Feed Co., Ltd.
Total 3,370,201,321.38
(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,.
22. Held-for-trading financial liabilities
Unit: Yuan
Item Ending balance Beginning balance
Held-for-trading financial liabilities 48,621,136.25 6,631,131.02
Wherein:
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Derivative financial liabilities 48,621,136.25 6,631,131.02
Wherein:
Total 48,621,136.25 6,631,131.02
Other remarks:
The derivative financial liabilities are future contracts and interest rate swaps purchased.
23. Notes payable
Unit: Yuan
Category Ending balance Beginning balance
Commercial acceptance bills 115,747,256.59 173,309,042.21
Bank acceptance bills 3,794,256,537.91 747,099,864.85
L/C 3,000,000.00 10,000,000.00
Negotiable credit certificate of accounts
407,855,215.66 260,712,198.47
receivable
Total 4,320,859,010.16 1,191,121,105.53
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 7,381,509,444.97 8,394,718,497.57
Total 7,381,509,444.97 8,394,718,497.57
25. Contract liabilities
Unit: Yuan
Item Ending balance Beginning balance
Contract liabilities 2,184,511,867.85 2,169,267,637.22
Total 2,184,511,867.85 2,169,267,637.22
26. Payroll payable
(1) Presentation of payroll payable
Unit: Yuan
Item Beginning balance Current increase Current decrease Ending balance
I. Short-term
1,056,794,216.94 4,563,910,523.70 4,474,107,563.21 1,146,597,177.43
compensation
II. Post-employment
benefits-defined 3,472,426.60 275,731,233.23 276,193,180.78 3,010,479.05
contribution plan
III. Termination
5,865,363.45 4,298,683.57 4,298,683.57 5,865,363.45
benefits
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IV. Other benefits due
0.00 0.00 0.00 0.00
in 1 year
Total 1,066,132,006.99 4,843,940,440.50 4,754,599,427.56 1,155,473,019.93
(2) Presentation of short-term compensation
Unit: Yuan
Item Beginning balance Current increase Current decrease Ending balance
1. Wage, bonus,
728,494,451.38 4,050,126,710.26 4,006,084,936.58 772,536,225.06
allowance and subsidy
2. Employee benefits 28,003.53 255,970,332.34 255,970,698.34 27,637.53
3. Social insurance
1,532,291.65 152,052,573.61 152,264,996.22 1,319,869.04
costs
Wherein: medical
1,289,941.11 138,361,473.17 138,570,151.76 1,081,262.52
insurance costs
Industrial
214,152.68 11,444,447.48 11,446,794.74 211,805.42
injury insurance costs
Maternity
28,197.86 2,246,652.96 2,248,049.72 26,801.10
insurance costs
4. Housing provident
147,851.70 22,788,421.57 22,818,915.57 117,357.70
fund
5. Trade union outlays
and employee 326,591,618.68 76,215,305.30 30,210,835.88 372,596,088.10
education expenditure
6. Short-term paid
0.00 6,757,180.62 6,757,180.62 0.00
absence
7. Short-term profit
0.00 0.00 0.00 0.00
sharing plan
Total 1,056,794,216.94 4,563,910,523.70 4,474,107,563.21 1,146,597,177.43
(3) Presentation of defined contribution plan
Unit: Yuan
Item Beginning balance Current increase Current decrease Ending balance
1. Basic endowment
2,705,356.53 261,993,463.53 262,218,694.14 2,480,125.92
insurance
2. Unemployment
574,657.95 9,948,661.08 10,048,858.84 474,460.19
insurance costs
3. Corporate annuity
0.00 0.00 0.00 0.00
contributions
4. Comprehensive
192,412.12 3,789,108.62 3,925,627.80 55,892.94
insurance
Total 3,472,426.60 275,731,233.23 276,193,180.78 3,010,479.05
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;
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apart from the aforesaid monthly contributions, the Company no longer assumes further payment obligation and the corresponding
expenditures are charged to the current profit and loss 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 2022, and the social insurance contributions will be paid to the social security bureau in July 2022.
27. Taxes payable
Unit: Yuan
Item Ending balance Beginning balance
VAT 65,886,827.48 37,595,831.50
Consumption tax 0.00 0.00
Enterprise income tax 160,498,888.99 207,152,560.74
Personal income tax 15,876,508.40 27,450,729.15
Urban maintenance and construction tax 5,549,708.36 4,104,299.46
Educational surcharge 2,677,501.25 1,937,384.35
Local educational surcharge 1,784,197.79 1,297,231.74
Water conservancy fund 572,289.10 750,120.78
Land use tax 10,031,966.02 9,748,114.59
Real estate tax 10,172,047.64 8,919,814.92
Stamp duty 10,930,961.95 10,337,841.82
Others 22,770,826.35 18,300,033.79
Total 306,751,723.33 327,593,962.84
Other remarks
28. Other payables
Unit: Yuan
Item Ending balance Beginning balance
Dividends payable 92,245,738.84 15,456,931.10
Other payables 3,480,880,257.24 3,435,816,987.21
Total 3,573,125,996.08 3,451,273,918.31
(1) Dividends payable
Unit: Yuan
Item Ending balance Beginning balance
Dividends on ordinary shares 92,245,738.84 15,456,931.10
Total 92,245,738.84 15,456,931.10
Other remarks, the cause of non-payment of significant dividends payable contained that are more than one year overdue is
required to be disclosed:
Item Ending balance Beginning balance Reasons for non-payment
beyond 1 year
Shandong Gongrong New Hope Equity Investment Fund
44,597,222.23
Partnership (LP)
Bank of Communications Financial Assets Investment
33,041,666.67
Co., Ltd.
302
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Shandong Rongda Agricultural Development Co., Ltd. 10,000,000.00 10,000,000.00 Already declared, but not
yet claimed by the
opposite party.
Exceptional Assets Limited 4,319,569.94 4,319,569.94 Already declared, but not
yet claimed by the
opposite party.
Henan Beixu (Group) Co., Ltd. 287,280.00
Binzhou Longda Food Co., Ltd. 1,137,361.16
Total 92,245,738.84 15,456,931.10
(2) Other payables
1) Other payables presented by nature of amount
Unit: Yuan
Item Ending balance Beginning balance
Temporary borrowings 389,211,987.74 377,338,258.02
Various deposits and margins temporarily
2,685,282,833.62 2,452,045,356.07
retained
Managed secured funds 27,543,357.62 31,216,624.37
Accrued expenses 221,203,805.85 161,930,539.64
Payments for share transfer 86,511,691.44 127,781,177.67
Payments for right-of-use assets 28,119,744.05 235,621,199.83
Others 43,006,836.92 49,883,831.61
Total 3,480,880,257.24 3,435,816,987.21
2) Significant other payables aged over 1 year
Unit: Yuan
Item Ending balance Why not repaid or carried forward
Not carried forward due to pending
South Hope Industrial Co., Ltd. 143,998,704.00
paperwork for equities and title
Nangong Civil Affairs Bureau 54,150,000.00 Special funding
Lvliang Elephant Farming Technology
53,146,804.25 Temporary borrowings
Co., Ltd.
Temporary borrowings, price of share
Luo Xuejun 33,950,697.05 transfer payable that does not meet
payment conditions
Qingshui Township Government 31,883,076.50 Temporary borrowings
Price of share transfer payable that does
Yantai Hongda Food Co., Ltd. 22,000,000.00
not meet payment conditions
Dong Baocheng 20,014,777.00 Temporary borrowings
Anhui Huaying Xintang Down Co., Ltd. 12,000,000.00 Deposit
Yanggu Luxin Halal Food Co., Ltd. 11,200,000.00 Deposit
Dai Fei 10,946,870.00 Temporary borrowings
Song Lijun 10,044,700.00 Temporary borrowings
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 7,008,506.00 Temporary borrowings
Xiaochang First Construction 6,123,200.00 Margin
303
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Engineering Co., Ltd.
Zhejiang Huatong Meat Product Co., Price of share transfer payable that does
6,016,447.03
Ltd. not meet payment conditions
Yu Linan 5,280,000.00 Deposit
Total 445,834,781.83
Other remarks
29. Non-current liabilities due in 1 year
Unit: Yuan
Item Ending balance Beginning balance
Long-term borrowings due in 1 year 7,087,935,880.30 4,217,969,278.74
Bonds payable due in 1 year 1,998,343,736.76
Lease liabilities due in 1 year 807,761,809.10 703,061,972.24
Payable bond interest due in 1 year
78,519,668.30 145,809,808.70
Interest
Total 9,972,561,094.46 5,066,841,059.68
Other remarks:
(1) Long-term borrowings due in 1 year:
Item Ending balance Beginning balance
Pledge loans 276,290,600.00 203,866,600.00
Mortgage loans 151,326,800.00 47,657,160.00
Guaranteed loans 3,758,934,623.72 2,500,155,664.05
Credit loans 2,847,090,940.77 1,402,574,193.32
Plus: interest payable on long-term
54,292,915.81 63,715,661.37
borrowings
Total 7,087,935,880.30 4,217,969,278.74
Note 1: long-term borrowings due in one year are detailed in Note VII. 32 “Long-term borrowings”.
Note 2: bonds payable due in one year are detailed in Note VII. 33 “Bonds payable”.
Note 3: lease liabilities due in one year are detailed in Note VII. 34 “Lease liabilities”.
30. Other current liabilities
Unit: Yuan
Item Ending balance Beginning balance
Output tax to be transfered 52,414,222.33 56,872,505.55
Total 52,414,222.33 56,872,505.55
Increase or decrease in short-term payable bonds:
31. Reserve for insurance contract
Item Ending balance Beginning balance
304
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Unearned premium reserve 83,682,822.28 81,123,134.10
Guarantee indemnity reserve 101,437,701.61 84,791,848.15
Total 185,120,523.89 165,914,982.25
32. Long-term borrowings
(1) Long-term borrowings by category
Unit: Yuan
Item Ending balance Beginning balance
Pledge loans 1,324,551,900.00 1,481,309,200.00
Mortgage loans 133,127,588.00 274,777,435.60
Guaranteed loans 18,764,060,545.36 18,892,249,972.02
Credit loans 12,240,742,728.33 12,064,090,451.15
Total 32,462,482,761.69 32,712,427,058.77
Remarks on classification of long-term borrowings:
(1) Pledge loans and pledges are as follows:
Amount of pledge loan
Pledge details Long-term Long-term borrowings
borrowings due in 1 year
100% equities in Fucheng Xinhao Farming Co., Ltd. 37,778,400.00 18,888,800.00
100% equities in Gaomi Xinliu Farming Technology Co., Ltd. 171,000,000.00 29,000,000.00
100% equities in Raoyang Xinhao Farming Co., Ltd. 127,555,500.00 63,777,800.00
100% equities in Baiyin New Hope Farming Technology Co., Ltd. 197,000,000.00 30,000,000.00
76.9231% equities in Kangping Xinwang Farming Co. Ltd. 174,000,000.00 20,000,000.00
100% equities in Zhucheng Xinliu Farming Technology Co., Ltd. 169,050,000.00 29,000,000.00
100% equities in Huanghua Xinhao Technology Co., Ltd., 70.7669% equities
in Xiangzhou Xinhao Farming Co., Ltd., and 50% equities in Beijing Meihao 448,168,000.00 85,624,000.00
Meideling Food Co., Ltd.
Total 1,324,551,900.00 276,290,600.00
(2) The mortgage loans and asset mortgages are presented as follows:
Amount of mortgage loan
Original book value
Collaterals Long-term Long-term borrowings
of collateral
borrowings due in 1 year
Land and house properties of Guanghan Guoxiong
Feed Co., Ltd. and Chengdu Century Investment Co., 42,999,605.64 100,000,000.00
Ltd.
Land of Mianyang New Hope Liuhe Farming
7,233,971.60 37,850,000.00 9,400,000.00
Technology Co., Ltd.
Land and house properties of Taizhou New Hope
37,826,180.78 29,000,000.00
Agriculture Co., Ltd.
Land and house properties of New Hope Singapore
42,174,683.67 14,277,588.00 1,926,800.00
Biotechnology Ltd.
Land and house properties of Beijing Kinghey Food
185,463,534.24 81,000,000.00 11,000,000.00
Co., Ltd.
Total 315,697,975.93 133,127,588.00 151,326,800.00
305
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(3) The details of guaranteed borrowings are presented as follows:
Ending balance of guaranteed loans
Names of the guarantor and the guaranteed Long-term Long-term borrowings
borrowings due in 1 year
Guarantee provided by New Hope Liuhe Co., Ltd. for Jiangmen Liuhe Feed
150,000,000.00
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Jiangmen Xinliu
34,000,000.00 4,000,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Shandong Kinghey Food
134,755,946.81 5,989,153.19
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Yangling Besun
60,186,899.51 17,000,000.00
Agricultural Industry Group Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Rugao Xinhao Farming
50,000,000.00
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Xiajin New Hope Liuhe
37,115,000.00 17,286,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Hubei Xinhao Farming
548,801,829.32 85,762,957.24
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Jiaxiang New Hope
14,000,000.00 70,000,000.00
Liuhe Swine Breeding Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Liaocheng Xinhao
72,191,872.59 48,127,581.74
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Tangshan Xinhao
510,300,000.00 106,800,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Gaotang Xinhao
92,347,091.19 50,471,236.46
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Hebei Xinhao Fucheng
183,460,000.00 40,000,000.00
Agricultural Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Donghai Xinhao
100,000,000.00 40,000,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for GuangYuan Xinhao
394,200,000.00 63,300,000.00
Agricultural Development Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Hainan Lingao Xinliu
45,000,000.00 20,000,000.00
Breeding Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Baiyin New Hope
20,000,000.00 22,500,000.00
Farming Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Yijun Xinliu
141,000,000.00 12,500,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Cao County Xinhao
189,996,869.27 50,005,942.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Ningming Xinhao
300,000,000.00 60,000,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Weinan Xinliu
443,199,772.00 54,400,114.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Fuping Xinliu Farming
67,500,000.00 8,500,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Suixi Xinhao Farming
30,000,000.00 10,000,000.00
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Neiqiu Xinliu Farming
270,010,200.00 19,993,200.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Bijie Xinliu Farming
79,200,000.00 15,840,000.00
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Chenzhou Xinhao
301,875,000.00 60,375,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Wulian Xinhao Farming
49,833,332.86 25,583,333.78
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Xinji Xinliu Farming
320,000,000.00 66,000,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Chongqing Pengshui
65,250,000.00 7,250,000.00
Xinliu Farming Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Raoyang Xinhao
50,000,000.00
Farming Co., Ltd.
306
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Guarantee provided by New Hope Liuhe Co., Ltd. for Ningbo New Hope
93,750,000.00 37,500,000.00
Liuhe Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Liuzhou Xinliu Farming
76,500,000.00 8,500,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Zibo Xinhao Farming
49,064,224.18 2,350,000.00
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd., Guang’an Agricultural
Development Group Co., Ltd. And Guang’an Deng Xiaoping Hometown
313,222,377.56 28,154,820.46
Development Fund Management Co., Ltd.for Guang’an Xinhao Farming Co.,
Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Hengshui Jizhou District
110,800,000.00 10,800,000.00
Xinhao Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Tongcheng Xinliu
261,470,647.81 54,525,133.00
Farming Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Anyue New Hope Liuhe
33,171,433.33 5,733,328.01
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Longhui New Hope
48,750,000.00 5,750,000.00
Liuhe Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Shan County Xinhao
92,475,000.00 38,350,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Rui’an New Hope Liuhe
49,000,000.00 1,000,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Nanjing Xinmu Farming
54,821,430.00 25,464,286.00
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Zhejiang Yihai
116,671,250.00 32,815,625.00
Agricultural Development Co. Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Dacheng Xinhao
59,600,000.00 8,400,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Zhenjiang New Hope
50,000,000.00 60,000,000.00
Liuhe Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Xiajiang Xinliu Farming
37,500,000.00 15,000,000.00
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for YanYuan Xinliu
190,000,000.00 10,000,000.00
Farming Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Changle New Hope
22,740,000.00 7,580,000.00
Liuhe Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Tianjin Xinliu Farming
192,481,479.12 29,521,799.96
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Lezhi Xinmu Farming
229,500,000.00 27,000,000.00
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for PingYuan Xinliu
39,299,135.16 5,991,341.03
Farming Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Meishan Xinmu
214,500,000.00 32,500,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Julu Xinliu Farming
50,650,000.00 16,900,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Longhai New Hope
87,500,000.00 35,000,000.00
Liuhe Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for GuangYuan Xinchi
58,000,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Luding Xinyue Farming
37,800,000.00 6,200,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Shaoyang Xinmu
36,740,000.00 1,260,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Shiyan Xinyue Farming
90,750,000.00 21,175,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Rong County Xinmu
235,000,000.00 16,000,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Xiangshan Huatong
120,000,000.00 40,000,000.00
Livestock Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for New Hope Singapore
2,348,990,000.00
Pte. Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Nanchong New Hope
45,000,000.00 10,000,000.00
Feed Co., Ltd.
307
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Guarantee provided by New Hope Liuhe Co., Ltd. for Zhanjiang Guoxiong
50,000,000.00
Feed Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Nanning New Hope
50,000,000.00
Farming Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Hengnan Muyun Eco-
105,000,000.00 21,000,000.00
agriculture Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Ruzhou Quansheng
63,000,000.00 21,000,000.00
Farming Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Hainan Chengmai New
30,000,000.00 12,500,000.00
Hope Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Chongqing New Hope
200,000,000.00
Feed Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Guanling Xinmu
108,880,000.00 17,280,000.00
Breeding Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Wuqi Xinliu Technology
85,000,000.00 10,000,000.00
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Shuozhou Xinhao
280,000,000.00 8,000,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Laiyang Xinhao
127,000,000.00 55,000,000.00
Livestock Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Dong’e New Hope
112,000,000.00 40,000,000.00
Liuhe Swine Breeding Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Liaoning Xinwang
665,034,900.00 141,386,700.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Kangping Xinwang
184,997,500.00 68,335,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Shenze New Hope Liuhe
186,970,003.00 18,639,999.00
Breeding Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Laixi New Hope Liuhe
833,261,346.31 40,626,613.85
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Guigang Xinliu Farming
179,100,000.00 19,900,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Pucheng Xinliu
129,193,811.99 51,677,533.28
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Anyang Xinliu
160,000,000.00 33,000,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Wuhe New Hope Liuhe
748,244,054.75 155,542,559.16
Livestock Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Puyang Xinliu Farming
150,000,000.00 50,000,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Juye Xinhao Farming
175,000,000.00 42,500,000.00
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Zhangwu Xinwang
113,000,000.00 4,000,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Xingren Xinliu Farming
94,875,000.00 12,375,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Heishan Xinliu Farming
125,000,000.00 10,000,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Taiqian Xinliu Farming
160,000,000.00 33,000,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Gansu New Hope Liuhe
104,996,600.00 30,000,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Yingcheng Xinhao
345,157,906.36 45,526,315.79
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Santai New Hope
160,000,000.00 10,000,000.00
Farming Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Yanting Xinhao Farming
303,883,000.00 85,900,000.00
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Hengyang Xinhao
55,378,250.00 26,485,250.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Dongying Xinhao
336,000,000.00 120,000,000.00
Modern Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Hezhou Xinhao Modern
262,500,000.00 52,500,000.00
Farming Co., Ltd.
308
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Guarantee provided by New Hope Liuhe Co., Ltd. for Zhaoqing Xinhao
185,959,999.98 30,040,000.02
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Jiangxi New Hope Liuhe
135,625,000.00 54,250,000.00
Farming Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Nanning Xinliu Farming
93,750,000.00 18,750,000.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Yantai Xinhao Farming
266,464,761.80 72,988,482.75
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for P izhou New Hope Liuhe
135,000,000.00 45,000,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Beijing Xinliu Farming
200,066,246.00 32,505,318.00
Technology Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for New Hope Liuhe (Zibo)
39,600,000.00
Agricultural Technology Development Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Sichuan New Hope
282,350,000.00 469,770,000.00
Liuhe Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Laiyang Xinmu
126,500,000.00 9,500,000.00
Breeding Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Beijing Kinghey Food
37,127,120.67 10,000,000.00
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Yanshi Liuhe Feed Co.,
28,000,000.00 7,000,000.00
Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Laibin Xinhao Farming
232,000,000.00 34,800,000.00
Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Liquan New Hope Liuhe
114,000,000.00 28,000,000.00
Farming Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Changyi Xinhao
95,000,000.00
Livestock Co., Ltd.
Guarantee provided by New Hope Liuhe Co., Ltd. for Shandong New Hope
40,000,000.00
Liuhe Group Co., Ltd.
Guarantee provided by Shandong New Hope Liuhe Group Co., Ltd. for
4,174,253.79
Qingdao New Hope Herun Bio-technology Co., Ltd.
Total 18,764,060,545.36 3,758,934,623.72
Other remarks, including on the interest rate range covered:
The range of interest rate on the ending long-term borrowings of the Company was 1.25%-4.66%.
33. Bonds payable
(1) Bonds payable
Unit: Yuan
Item Ending balance Beginning balance
Hope Convertible bonds 868,200,484.87 854,353,874.51
20 Hope Liuhe (pandemic containment
1,997,115,768.20
bond) MTN001
21 Hope Liuhe (rural revitalization)
1,996,569,196.68 1,995,585,884.00
MTN001
Hope Convertible Bond 2 6,557,125,802.55 6,389,048,879.80
21 Sichuan New Hope Liuhe ZR001 97,847,808.51 98,596,073.29
22 Sichuan New Hope Liuhe ZR001 394,718,266.82
Total 9,914,461,559.43 11,334,700,479.80
309
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(2) Increase or decrease in bonds payable (excluding preferred shares, perpetual bonds and other
financial instruments classified as financial liabilities)
Unit: Yuan
Interes Amorti Conve
Minus:
t zation rted
Beginn Curren Curren bonds
Nomin Issue accrue of into Ending
Bond Issuing Bond ing t t payabl
al amoun d at premiu shares balanc
name date period balanc issuan repay e due
value t nomin m and in the e
e ce ment in 1
al discou current
year
value nt period
Hope
4,000, 3,986, 854,35 13,896 868,20
Conve Jan. 3, 7,716, 49,603 7,716,
000,00 6 years 000,00 3,874. ,214.0 0,484.
rtible 2020 170.59 .70 170.59
0.00 0.00 51 6 87
bonds
20
Hope
Liuhe
(pande
2,000, 1,992, 1,997, 91,466 68,600 2,021,
mic Mar. 9, 1,227,
000,00 3 years 800,00 115,76 ,666.7 ,000.0 210,40
contai 2020 968.56
0.00 0.00 8.20 6 4 3.48
nment
bond)
MTN0
01
21
Hope
Liuhe
2,000, Mar. 1,994, 1,995, 130,66 98,000 32,666 1,996,
(rural 3+2 983,31
000,00 19, 000,00 585,88 6,666. ,000.0 ,666.6 569,19
revitali years 2.68
0.00 2021 0.00 4.00 72 4 8 6.68
zation)
MTN0
01
Hope
8,150, 8,136, 6,389, 10,866 168,63 10,866 6,557,
Conve Nov. 2, 559,32
000,00 6 years 000,00 048,87 ,477.6 6,243. ,477.6 125,80
rtible 2021 0.48
0.00 0.00 9.80 4 23 4 2.55
Bond 2
21
Sichua
100,00 Nov. 98,560 98,596 97,847
n New 2,360, 251,73 3,021, 339,02
0,000. 25, 3 years ,000.0 ,073.2 ,808.5
Hope 186.67 5.22 166.67 0.00
00 2021 0 9 1
Liuhe
ZR001
22
Sichua
400,00 Mar. 394,24 394,24 394,71
n New 4,064, 478,26 4,064,
0,000. 31, 3 years 0,000. 0,000. 8,266.
Hope 666.67 6.82 666.67
00 2022 00 00 82
Liuhe
ZR001
16,601 11,334 394,24 247,14 185,47 169,62 2,076, 9,914,
608,92
Total —— ,600,0 ,700,4 0,000. 0,835. 3,740. 1,166. 863,40 461,55
4.18
00.00 79.80 00 05 57 75 5.06 9.43
310
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(3) Remarks on conditions and time of conversion into shares for convertible corporate bonds
According to the approval of CSRC in the Reply on Approval of Public Issuing of Convertible Corporate Bonds by New
Hope Liuhe Co., Ltd. (CSRC Approval [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 billion Yuan and a bond period of 6 years.
The nominal rate of convertible corporate bonds issued that time was 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 days) 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 not 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 of shareholders, deliberated and approved the “2019
Annual Profit Distribution Plan”, announcing to distribute cash dividend of 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, and 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 CSRC in the Reply on Approval of the Non-public Offering of Stocks by New
Hope Liuhe Co., Ltd. (CSRC Approval [2020] No.1961), the Company privately placed 177,147,918 RMB ordinary shares (A
shares) to two particular investors by means of private placement of stocks.Those shares already registered with CSDC Shenzhe n
with respect 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 that time became convertible on July 9, 2020, and the total share capital of the Company
after the issuance was increased to 4,504,101,656 shares calculated on the basis of 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 conversion price
of “Hope Convertible Bonds” was 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.
According to the approval of CSRC in the Reply on Approval of Public Issuing of Convertible Corporate Bonds by New
Hope Liuhe Co., Ltd. (CSRC Approval [2021] No. 1351), the Company publicly issued 81.5 million convertible corporate bonds
each having a par value of 100 Yuan on November 2, 2021, for a total issue amount of 8.15 billion Yuan and a bond period of 6
years.
The nominal rate of convertible corporate bonds issued that time was 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 (May 9, 2022) after six months of the end of this issue of convertible bonds
(November 8, 2021, T+4 days) to the expiry date of the convertible bonds (November 1, 2027). Holders may apply for conversion
into shares within the conversion period.
The initial conversion price of convertible corporate bonds issued this time is 14.45 Yuan/share, which is not 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.
311
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34. Lease liabilities
Unit: Yuan
Item Ending balance Beginning balance
Lease liabilities - lease payments 8,782,178,729.73 8,697,408,900.38
Lease liabilities - unrecognized financing
-3,189,261,371.58 -3,280,005,222.89
costs
Lease liabilities due in 1 year -807,761,809.10 -703,061,972.24
Total 4,785,155,549.05 4,714,341,705.25
Other remarks:
35. Deferred income
Unit: Yuan
Reason for
Item Beginning balance Current increase Current decrease Ending balance
formation
Government
363,219,901.05 79,799,453.60 29,391,981.43 413,627,373.22
subsidies
Total 363,219,901.05 79,799,453.60 29,391,981.43 413,627,373.22
Projects involving government subsidies:
Unit: Yuan
Amount
Amount Amount
New included in
included in offsetting
subsidies non- Asset-
Items of Beginning other costs and Other Ending
added in business related/inco
liabilities balance income in expenses in changes balance
the current revenue in me-related
the current the current
period the current
period period
period
Headquarte
rs -
Analysis
and early
warning
and
forecast of
typical Asset-
264,000.00 264,000.00
livestock related
and poultry
epidemic
diseases/20
21ZD0113
803-04
(special
fund)
Headquarte
rs -
Research of Asset-
62,354.61 3,799.98 58,554.63
comprehen related
sive
prevention
312
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and control
of main
infectious
diseases of
poultry and
internation
al
cooperation
platform
constructio
n project
(special
fund)
Headquarte
rs - Key
technologie
s and
product
creation for
quality and
efficiency
Asset-
improveme 800,000.00 800,000.00
related
nt of non-
grain
protein
feed
(2021YFD
1301004)(s
pecial
fund)
Headquarte
rs -
Application
demonstrati
on of
intelligent
veterinary
cloud
service for
Asset-
pig disease 440,000.00 440,000.00
related
diagnosis
and active
prevention
and
control/202
1ZD01138
05-3
(special
fund)
Headquarte
rs -
Formulatio
n of a
Asset-
standard 50,000.00 50,000.00
related
“Feed
Ingredient
Soybean
Protein
313
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Concentrat
e”
Headquarte
rs -
Regulation
and
mechanism
formed by
daily ration
compositio
Asset-
n and 210,400.40 210,400.40
related
feeding
system on
healthy and
high-
quality
meat of
livestock
and poultry
Headquarte
rs -
Research
and
developme
nt of
packaged
technology
and
equipment
for Asset-
52,721.37 52,721.37
treatment related
and
recycling
of dead
livestock
and poultry
and
slaughterin
g wastes
(special
fund)
Headquarte
rs -
Knowledge
map
constructio
n and
multimedia
man- Asset-
330,000.00 330,000.00
machine related
dialogue of
typical pig
diseases
(2021Zd01
13802-
3)(special
fund)
Headquarte 907.63 907.63 Asset-
314
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rs - related
Application
and
demonstrati
on of
green,
efficient
and safe
breeding
technology
for aquatic
birds
Headquarte
rs -
“Excellent
Plan”
project of Asset-
450,000.00 450,000.00 900,000.00
Tech City related
Talent
Program
(special
fund)
Headquarte
rs - Key
project
under “Belt
3,000,000.0 3,000,000.0 Asset-
and Road”
0 0 related
and
internation
al capacity
cooperation
Headquarte
rs -
Formulatio
n of a
Asset-
standard 50,000.00 50,000.00
related
“Feed
Ingredient
Stone
Powder”
Headquarte
rs -
Research of
AI-based
rapid
identificati
on and
containmen
t Asset-
699,710.00 699,710.00
technology related
system for
drug-
resistant
bacteria
transmittin
g between
humans
and poultry
315
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(special
fund)
Headquarte
rs -
Evaluation
of new-
type corn
and
Asset-
soybean 21,103.92 21,103.92
related
breeding
and
nutritional
value for
livestock
and poultry
Headquarte
rs -
Research of
nutritional
value of
bio- Asset-
900,000.00 900,000.00
manufactur related
ed protein
feed and
efficient
utilization
technology
Headquarte
rs -
Unmanned
disinfection
technology
for scene-
aware and
Asset-
intelligent 260,000.00 260,000.00
related
planning
hog
house/2021
ZD011380
4-04
(special
fund)
Headquarte
rs -
Developme
nt of
precise
nutrition
Income-
and non- 990,000.00 990,000.00
related
grain
nutrition
sources for
Sichuan pig
(special
fund)
Headquarte
Income-
rs - 544,000.00 150,000.00 694,000.00
related
Autonomo
316
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us system
of efficient
and precise
cutting of
livestock
and poultry
meat
products by
robots
(direct
funding)
Mianyang
New Hope
2,650,109.0 2,497,217.0 Asset-
- Industrial 152,892.00
0 0 related
developme
nt fund
Mianyang
New Hope
- Economic
work
Income-
industrial 10,000.00 10,000.00
related
developme
nt
evaluation
award
Guanghan
Guoxiong - Asset-
53,333.20 4,000.02 49,333.18
Boiler related
subsidy
Qujing
Guoxiong -
Asset-
Boiler 54,511.12 54,511.12
related
renovation
subsidy
Hebei New
Hope - Asset-
99,999.94 8,333.34 91,666.60
Boiler related
subsidy
Wulong
New Hope
-
Governmen Asset-
19,999.78 10,000.02 9,999.76
t subsidy related
from
private
funds
Baoji New
Hope -
Integration
project
(workshop
Asset-
electric 58,604.68 14,651.16 43,953.52
related
control and
automated
computer
batching
system)
317
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Baoji New
Hope -
Subsidy for
Asset-
technical 82,403.62 1,287.54 81,116.08
related
renovation
of vertical
silos
Baoji New
Hope -
2020 SME
Asset-
technical 60,000.00 60,000.00
related
renovation
program
bonus
Baoji New
Hope -
Special
subsidy for Asset-
96,000.16 7,999.98 88,000.18
boiler related
demolition
and
renovation
Baoji New
Hope -
Asset-
Subsidy for 539,473.92 13,157.88 526,316.04
related
feed plant
project
Huanggang
New Hope 4,560,030.5 4,506,315.7 Asset-
53,714.82
- Land 3 1 related
rebate
Huanggang
New Hope
- Subsidy Asset-
317,333.33 317,333.33
for related
technical
renovation
Huaihua
New Hope
-
Constructio 1,459,416.8 1,438,666.8 Asset-
20,749.98
n of 6 8 related
standardize
d factory
buildings
Xiangyang
New Hope
3,130,506.8 3,095,915.6 Asset-
- Land 34,591.20
0 0 related
preference
policy
Xinguofu
Company - Asset-
836,917.00 27,688.14 809,228.86
fixed assets related
subsidy
Laiwu
Asset-
Liuhe Food 30,222.25 2,666.64 27,555.61
related
- Boiler
318
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subsidy
Yishui
Refrigerati
on -
Sewage
treatment
Asset-
tank and 700,448.00 31,248.00 669,200.00
related
sewage
treatment
further
improveme
nt subsidy
Yishui
Refrigerati
on - Multi-
energy
Asset-
complemen 962,000.00 55,500.00 906,500.00
related
tary clean
heating
project
subsidy
Porridge
Jiahe -
2021
Enterprise
intelligent 1,230,000.0 1,204,375.0 Asset-
25,625.00
transformat 0 0 related
ion and
upgrading
project
award fund
Porridge
Jiahe -
Chinese
style
automatic
central Asset-
585,000.00 585,000.00
kitchen related
complete
equipment
R&D and
demonstrati
on project
Porridge
Jiahe -
2018
Industrial
structure
adjustment
Asset-
promoting 450,000.00 450,000.00
related
small and
medium-
sized
developme
nt fund
project
Porridge Asset-
191,551.49 13,682.22 177,869.27
Jiahe - related
319
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Beijing gas
(fuel)
boiler low
nitrogen
reform
incentive in
lieu of fund
subsidy
Dezhou
Jinshan -
Boiler Asset-
44,640.00 7,440.00 37,200.00
room related
governmen
t subsidy
Dezhou
Jinshan -
Special
governmen
Asset-
t subsidy 727,050.00 117,900.00 609,150.00
related
for
refrigeratio
n
equipment
Jiaxiang
Food -
County and
2,498,644.0 2,465,104.0 Asset-
village 33,540.00
0 0 related
revitalizati
on project
award
Jiaxiang
Food -
9,262,094.4 9,158,607.3 Asset-
Governmen 103,487.10
6 6 related
t land
subsidy
Jiaxiang
Food -
Mordern
and
efficient Asset-
476,666.56 32,500.02 444,166.54
animal related
husbandry
developme
nt project
subsidy
Linyi
Refrigerati Asset-
313,535.00 32,430.00 281,105.00
on - Solar related
subsidy
Weifang
HeshengYu
an - 2018
Fixed 1,349,949.8 1,256,849.8 Asset-
93,100.02
assets 9 7 related
technical
transformat
ion subsidy
320
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Weifang
HeshengYu
an - 2020
Fixed Asset-
302,304.40 13,995.60 288,308.80
assets related
technical
transformat
ion subsidy
Weifang
HeshengYu
an - 2017
Fixed Asset-
287,033.44 21,799.98 265,233.46
assets related
technical
transformat
ion subsidy
Weifang
HeshengYu
2,609,405.0 2,580,022.3 Asset-
an - Land 29,382.72
9 7 related
transfer
price rebate
Weifang
HeshengYu
an -
Imported Asset-
516,915.68 40,279.14 476,636.54
cooked related
food
equipment
tax rebate
Weifang
HeshengYu
an -
Research
and
industrializ
ation of
new key
Income-
technologie 96,000.00 24,000.00 72,000.00
related
s for
bacteria
reduction
and color
protection
of chilled
chicken
food
Shandong
Kinghey -
Agricultura
l cold chain
1,400,000.0 1,400,000.0 Asset-
logistics
0 0 related
and
warehouse
constructio
n project
Bengbu
Asset-
Food - 186,056.00 186,056.00
related
Urban
321
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infrastructu
re support
fund
Bengbu
Food -
Land
Asset-
transfer 931,767.00 931,767.00
related
taxes
support and
rewards
Hebei
Farming -
Kuancheng
standard Asset-
1,666.26 1,666.26
scale pig related
farm
constructio
n subsidy
Hebei
Farming -
Kuancheng
Asset-
vegetable 16,666.66 16,666.66
related
basket
project
subsidy
Hebei
Farming -
Kuancheng
vegetable Asset-
30,000.00 15,000.00 15,000.00
basket related
livstock
products
hog project
Hebei
Farming -
Kuancheng
standard Asset-
75,000.00 22,500.01 52,499.99
scale pig related
farm
constructio
n project
Tibet
Linzhi -
Asset-
Agricultura 149,066.86 76,399.98 72,666.88
related
l circular
economy
Yangling
Besun -
2014
provincial
modern 3,791,666.8 3,666,666.8 Asset-
124,999.98
agricultural 6 8 related
park
special
fund
project
Yangling 3,200,000.0 400,000.02 2,799,999.9 Asset-
322
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Besun - 0 8 related
Industry
support
fund for
national
service
sector
developme
nt guideline
fund
demonstrati
on area
Yangling
Besun -
Whole pig
industry
chain
quality
1,460,000.0 1,335,200.0 Asset-
traceability 124,800.00
0 0 related
and
epidemic
control and
prevention
system
project
Yangling
Besun -
Sick and
dead pig 3,625,000.0 3,437,500.0 Asset-
187,500.00
harmless 0 0 related
treatment
system
project
Yangling
Besun -
Green pork
deep
processing
8,000,000.0 1,000,000.0 6,999,999.9 Asset-
and meat
0 2 8 related
product
safety
testing
center
project
Yangling
Besun -
20,000t/a
Bagged
organic
1,425,000.1 1,330,000.1 Asset-
fertilizer 94,999.98
0 2 related
and
10,000t/a
liquid
fertilizer
project
Yangling
1,829,787.2 1,744,680.8 Asset-
Besun - 85,106.40
3 3 related
Standard
323
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and large-
scale
commercial
pig
fattening
base
expansion
project
Yangling
Besun -
Boar Asset-
300,024.00 49,998.00 250,026.00
station related
constructio
n project
Yangling
Besun -
10,000t/a 1,600,000.0 1,400,000.0 Asset-
199,999.98
Refrigerati 0 2 related
on house
project
Yangling
Besun -
Safe and
pollution-
free pork 2,800,000.0 2,800,000.0 Asset-
deep 0 0 related
processing
industrializ
ation
project
Yangling
Besun - Pig
farm
wastes
comprehen 6,498,700.0 6,248,500.0 Asset-
250,200.00
sive 0 0 related
utilization
and clean
production
project
Yangling
Besun -
2014
Agricultura
l
comprehen
sive 2,310,000.0 2,227,500.0 Asset-
82,500.00
developme 0 0 related
nt
provincial
industrializ
ation
project
fund
Yangling
Besun - Asset-
180,000.00 30,000.00 150,000.00
Branded related
meat sales
324
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network
constructio
n project
Yangling
Besun -
Piglet
nursing
Asset-
technology 40,000.20 4,999.98 35,000.22
related
industrializ
ation
demonstrati
on project
Yangling
Besun -
Safe and
pollution-
1,000,000.0 1,000,000.0 Asset-
free pork
0 0 related
deep
processing
constructio
n project
Yangling
Besun -
5000t/a
Safe and
pollution-
free pork
deep
processing 2,700,000.0 2,362,500.0 Asset-
337,500.00
plant 0 0 related
reconstructi
on and
expansion
project in
Yangling
Demonstrat
ion Area
Yangling
Besun -
Animal
disease Asset-
857,142.86 321,428.58 535,714.28
control related
center
constructio
n project
Besun
Food -
Subsidy for
slaughterin Asset-
400,000.00 100,000.00 300,000.00
g business related
standard
transformat
ion project
Besun
Bigong -
Asset-
Yangling 714,000.00 714,000.00
related
Demonstrat
ion Area
325
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Financial
Bureau
high-
efficiency
safe pig
feed
production
line
constructio
n project
fund
Yangling
Feed -
Technical 1,032,500.0 Asset-
52,500.00 980,000.00
transformat 0 related
ion project
subsidy
Baoji
Jinfeng -
Breeding Asset-
941,909.26 24,896.28 917,012.98
pig farm related
constructio
n subsidy
Zhidan
Dingxiang
- Hog
industry 13,999,999. 13,599,999. Asset-
400,000.02
developme 90 88 related
nt guidance
and support
fund
Tongliang
New Hope
1,010,000.0 Asset-
- Digital 50,500.02 959,499.98
0 related
workshop
subsidy
Rugao
Xinhao -
Manure
Asset-
resource 842,000.83 52,689.12 789,311.71
related
utilization
project
subsidy
Rugao
Xinhao -
Governmen
t subsidy
Asset-
for 135,911.59 4,972.38 130,939.21
related
ecological
circulation
pilot biogas
project
Xiajin
Farming -
10,792,904. 10,558,275. Asset-
Environme 234,628.26
05 79 related
ntal
protection
326
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subsidy
Xiajin
Farming -
1,300,000.2 1,250,000.2 Asset-
Road 49,999.98
2 4 related
constructio
n subsidy
Xiajin
Farming -
Agricultura Asset-
98,843.30 22,810.02 76,033.28
l machinery related
purchase
subsidy
Xiajin
Breeding -
Asset-
Agricultura 64,738.43 16,686.30 48,052.13
related
l machinery
subsidy
Linshu
Breeding
Pig - Asset-
124,166.77 4,999.98 119,166.79
Agricultura related
l machinery
subsidy
Linyi
Breeding
Pig - Tank-
Asset-
type 23,679.92 1,480.02 22,199.90
related
tricycle
governmen
t subsidy
Linyi
Breeding
Pig - Pig
Asset-
moving out 148,000.19 18,499.98 129,500.21
related
of major
county
subsidy
Linyi
Breeding
Pig -
Asset-
Fermentati 844,549.83 34,087.02 810,462.81
related
on tank
governmen
t subsidy
Rongchang
Pig Farm -
Heterotopic
Asset-
fermentatio 233,062.50 6,187.50 226,875.00
related
n bed
project
subsidy
Rongchang
Pig Farm -
Sewage Asset-
406,667.35 17,499.96 389,167.39
treatment related
constructio
n project
327
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subsidy
Rongchang
Pig Farm -
Asset-
Seed 400,000.00 21,621.62 378,378.38
related
introductio
n subsidy
Rongchang
Pig Farm -
Boar 1,000,000.3 Asset-
49,999.98 950,000.38
station 6 related
constructio
n project
Rongchang
Pig Farm -
Asset-
Pig 20,000.31 4,999.98 15,000.33
related
resource
subsidy
Junan
Breeding
Pig -
Lingnan
Farm
Asset-
quality 155,923.21 12,498.00 143,425.21
related
agricultural
product
base brand
governmen
t subsidy
Junan
Breeding
Pig -
Lingnan Asset-
510,000.00 15,000.00 495,000.00
Farm related
exhibition
hall
subsidy
Junan
Breeding
Pig - 2015
1,226,678.7 1,187,108.7 Asset-
Modern 39,570.00
9 9 related
developme
nt fund
project
Junan
Breeding
Pig -
Lingnan
Farm
digital Asset-
575,007.33 49,998.00 525,009.33
system related
manageme
nt and
breeding
equipment
subsidy
Junan Asset-
148,006.67 4,380.00 143,626.67
Breeding related
328
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Pig -
Lingnan
Farm pig
industry
healthy
breeding
subsidy
Huanghua
Xinhao -
Asset-
Industry 720,000.00 45,000.00 675,000.00
related
developme
nt fund
Liaocheng
Xinhao -
Asset-
Agricultura 694,040.06 43,377.48 650,662.58
related
l machinery
subsidy
Gaomi
Breeding
Pig - Asset-
251,609.11 11,873.10 239,736.01
Standard related
breeding
subsidy
Laiyang
Xinhao -
Asset-
Road 300,000.00 4,166.65 295,833.35
related
constructio
n subsidy
Tangshan
Xinhao -
1,186,249.9 1,169,999.9 Asset-
Agricultura 16,250.01
5 4 related
l project
subsidy
Tangshan
Xinhao -
Decontami
2,620,243.7 2,584,350.0 Asset-
nation 35,893.74
7 3 related
center
governmen
t subsidy
Tangshan
Xinhao -
Asset-
Agricultura 228,139.98 6,710.01 221,429.97
related
l machinery
subsidy
Tangshan
Xinhao -
Pig moving
1,800,000.0 1,580,000.0 Asset-
out of 220,000.00
0 0 related
major
county
incentive
Tangshan
Xinhao -
Asset-
Fermentati 525,000.00 37,500.00 487,500.00
related
on tank
subsidy
329
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Hebei
Xinhao -
Dayuezhua 1,994,029.8 1,958,208.9 Asset-
35,820.90
ng pig farm 5 5 related
constructio
n subsidy
Xiao
County
Breeding Asset-
69,166.79 4,999.98 64,166.81
Pig - Boar related
station
subsidy
Xiao
County
Breeding Asset-
73,558.41 33,949.98 39,608.43
Pig - Pig related
introductio
n subsidy
Yucheng
Xinliu - Asset-
70,000.00 70,000.00
Hog county related
subsidy
GuangYuan
Xinhao -
20 Large-
scale pig Asset-
485,416.69 12,499.98 472,916.71
breeding related
farm
constructio
n subsidy
Changyi
Xinhao -
Asset-
Agricultura 141,250.00 7,500.00 133,750.00
related
l machinery
subsidy
Baiyin
Farming -
Asset-
Agricultura 61,394.14 8,185.86 53,208.28
related
l machinery
subsidy
Yijun
Xinliu - 4-
access and 1,592,500.0 1,347,500.0 Asset-
244,999.98
1-leeling 4 6 related
constructio
n fund
Luocheng
Xinhao -
Vehicle
Asset-
decontamin 239,000.00 6,000.00 233,000.00
related
ation center
constructio
n subsidy
Luocheng
Xinhao - Asset-
120,000.00 120,000.00
Quarantine related
center and
330
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secondary
decontamin
ation center
housing
subsidy
Luocheng
Xinhao -
Manure
Asset-
fermentatio 955,555.52 33,333.36 922,222.16
related
n tank
project
subsidy
Shenze
Xinhao -
Asset-
Agricultura 14,591.61 850.02 13,741.59
related
l equipment
subsidy
Laizhou
Xinhai -
Cultivated Asset-
40,923.60 3,410.30 37,513.30
land related
conservatio
n subsidy
Laizhou
Xinhai -
Asset-
Agricultura 126,380.00 10,531.67 115,848.33
related
l machinery
subsidy
Chenzhou
Xinhao -
Yizhang Asset-
12,930.00 12,930.00
agricultural related
machinery
subsidy
Gansu
Xinliu - Pig
breeding Asset-
700,000.00 50,000.00 650,000.00
integration related
project
subsidy
Wuhe Feed
- Fixed 2,276,000.0 2,256,588.4 Asset-
19,411.52
assets 0 8 related
subsidy
Juye
Xinhao -
Modern
agricultural Asset-
960,000.00 960,000.00
industrial related
park
project
fund
Zhangwu
Xinwang -
13,120,000. 3,224,888.8 9,895,111.1 Asset-
Governmen
00 8 2 related
t rebate of
cultivated
331
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land
occupancy
tax
Zhangwu
Xinwang -
Six taxes
7,123,900.0 3,561,949.9 3,561,950.0 Asset-
and two
0 8 2 related
fees
reduction
and refund
Ningbo
Xinhai -
Lab
Asset-
constructio 100,000.00 100,000.00
related
n
governmen
t subsidy
Liuzhou
Xinliu -
Stable pig 1,520,000.7 1,506,667.4 Asset-
13,333.34
production 6 2 related
project
subsidy
Tai’an
Xinchi -
Asset-
Pig 99,999.92 99,999.92
related
breeding
subsidy
Tai’an
Xinchi -
Asset-
Boar 346,800.00 75,450.00 271,350.00
related
introductio
n subsidy
Gansu
Xinhao - Asset-
187,390.75 15,131.11 172,259.64
Equipment related
subsidy
Gansu
Xinhao -
Asset-
Agricultura 106,227.96 6,276.12 99,951.84
related
l machinery
subsidy
Gansu
Xinhao -
Income-
Party 20,000.00 20,000.00
related
building
subsidy
Yingcheng
Xinhao -
2021-2023
Hubei Asset-
22,938.80 1,274.40 21,664.40
agricultural related
machinery
purchase
subsidy
Tangshan 2,167,562.5 2,112,687.5 Asset-
54,874.98
Environme 1 3 related
332
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ntal
Protection -
Manure
treatment
station
plant
constructio
n subsidy
Santai
Farming -
Standard Asset-
283,332.99 100,000.02 183,332.97
pig farm related
constructio
n subsidy
Santai
Farming - Income-
108,334.05 99,999.96 8,334.09
Financial related
discount
Santai
Farming -
Mordern
Asset-
animal 146,510.72 30,312.48 116,198.24
related
husbandry
key project
subsidy
Santai
Farming -
Pig farm Asset-
72,916.91 12,499.98 60,416.93
constructio related
n project
subsidy
Santai
Farming -
Asset-
Reproducib 398,408.10 86,156.76 312,251.34
related
le sows
subsidy
Santai
Farming -
Asset-
Project 181,818.21 9,917.34 171,900.87
related
constructio
n subsidy
Santai
Farming -
Pig moving
out of Asset-
112,499.69 25,000.02 87,499.67
major related
county
project
subsidy
Yanting
Xinhao -
2,000m3 Asset-
144,989.00 10,002.00 134,987.00
Clean- related
water tank
subsidy
Yanting Asset-
916,824.00 61,002.00 855,822.00
Xinhao - related
333
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Jianhe
Township
12,000
breeding
pig farm
manure
treatment
and
resource
utilization
project
subsidy
Yanting
Xinhao -
Municipal
agricultural 1,816,666.6 1,716,666.6 Asset-
100,000.02
industry 3 1 related
developme
nt fund
subsidy
Yanting
Xinhao -
Large-scale 1,187,500.0 1,112,500.0 Asset-
75,000.00
biogas 0 0 related
project
subsidy
Yanting
Xinhao -
Asset-
Reproducib 345,833.32 324,999.95 20,833.37
related
le sows
subsidy
Yanting
Xinhao -
Income-
Industrial 20,833.31 20,833.31
related
developme
nt fund
Yanting
Xinhao -
Governmen
t subsidy
for 2021
Income-
major 45,000.00 7,500.00 37,500.00
related
technology
collaborati
ve
promotion
project
Yanting
Xinhao -
Income-
Loan 973,719.60 486,859.80 486,859.80
related
interest
subsidy
Leshan
Farming -
Asset-
Pig 317,914.02 36,808.92 281,105.10
related
industry
chain
334
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special
fund
Leshan
Farming -
Asset-
Reproducib 483,823.99 126,214.92 357,609.07
related
le sows
subsidy
Leshan
Farming -
2,841,592.9 2,791,150.4 Asset-
Jinfeng 50,442.48
2 4 related
green cycle
subsidy
RuYuan
Xinhao -
Provincial
financial
subsidy for
modern
2,923,076.9 2,899,999.9 Asset-
agricultural 23,076.94
2 8 related
industrial
park in pig
advantageo
us
production
areas
RuYuan
Xinhao -
Manure 3,500,000.0 3,500,000.0 Asset-
remediatio 0 0 related
n project
subsidy
Yingtan
Xinliu -
2021 Fine Asset-
87,091.67 14,929.98 72,161.69
breed related
project
subsidy
Yingtan
Xinliu -
Reproducib
le sows Asset-
486,111.11 83,333.34 402,777.77
subsidy of related
Animal
Husbandry
Bureau
Yingtan
Xinliu -
2020 Fifth
batch of
breeding Asset-
400,166.64 85,750.02 314,416.62
pigs and related
reproducibl
e sows
introductio
n subsidy
Longhui Asset-
751,111.16 26,666.64 724,444.52
Xinhai - related
335
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Governmen
t subsidy
for
livestock
and poultry
manure
resource
utilization
Qianjiang
Xinhao -
2,343,749.9 2,281,249.9 Asset-
Constructio 62,500.02
5 3 related
n project
subsidy
Lezhi
Xinhai -
Asset-
Pig 50,688.00 50,688.00
related
insurance
subsidy
Hezhou
Xinhao - 1,000,000.0 Asset-
4,444.44 995,555.56
Pig support 0 related
subsidy
Hezhou
Xinhao -
1,000,000.0 1,923,632.6 Asset-
Farm 966,386.56 42,753.92
0 4 related
constructio
n subsidy
Zhaoqing
Xinhao -
Governmen
6,165,658.5 5,990,596.6 Asset-
t subsidy 175,061.92
5 3 related
for a strong
agricultural
town
Zhaoqing
Xinhao -
Governmen
2,700,000.0 2,641,949.1 Asset-
t subsidy 58,050.82
0 8 related
for manure
resource
utilization
Zhaoqing
Xinhao -
Governmen
t subsidy 4,556,842.1 4,435,877.3 Asset-
120,964.88
for 8 0 related
agricultural
industrial
park fund
Nanning
Xinliu -
2020 Pig
production Asset-
190,487.50 163,275.00 27,212.50
support related
subsidy of
Liangqing
Agriculture
336
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and Rural
Bureau
Nanning
Xinliu -
2020 Stable
pig
production Asset-
513,333.28 18,333.36 494,999.92
project related
subsidy of
the
automonou
s region
Guanglv
Xinliu -
Hangzhou
1,171,726.0 Asset-
phase II 305,664.00 866,062.00
0 related
seed
introductio
n subsidy
Guanglv
Xinliu -
Xiaoshan
Asset-
District 40,168.07 9,640.32 30,527.75
related
fine pig
breed
subsidy
Guanglv
Xinliu -
10,000 Pig
3,885,008.0 3,021,680.0 Asset-
farm 863,328.00
0 0 related
incentive in
lieu of
sbusidy
Guanglv
Xinliu -
Asset-
Xiaoshan 924,444.42 213,333.36 711,111.06
related
District pig
subsidy
Guanglv
Xinliu -
Xiaoshan
District 2,343,444.5 1,732,110.5 Asset-
611,334.00
phase I 5 5 related
seed
introductio
n subsidy
Xindongwa
n Xinliu -
Asset-
Seed 150,000.00 12,500.01 137,499.99
related
introductio
n subsidy
Xindongwa
n Xinliu -
2,992,503.0 2,327,505.0 Asset-
Incentive 664,998.00
0 0 related
governmen
t subsidy
Zizhong 1,556,800.0 1,556,800.0 Asset-
337
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Xinyue - 0 0 related
Governmen
t subsidy of
Zizhong
Agricultura
l and Rural
Bureau
Yancheng
Zhongtai -
5,000,000.0 4,895,833.3 Asset-
Pig farm 104,166.65
0 5 related
constructio
n subsidy
Jiangyou
Pig Farm -
2021
Jiangyou
pig seed Asset-
91,666.67 49,999.98 41,666.69
industry related
modern
agricultural
park
project
Jiangyou
Pig Farm -
Pig 1,114,284.4 1,045,891.1 Asset-
68,393.34
industrializ 8 4 related
ation
project
Jiangyou
Pig Farm -
foreign
breeding
pig Asset-
412,500.00 225,000.00 187,500.00
performanc related
e
measureme
nt project
subsidy
Jiangyou
Pig Farm -
Jiangyou
Pig
Industrial
Park
Asset-
breeding 255,555.57 66,666.66 188,888.91
related
and
breeding
related
technology
research
project
Jiangyou
Pig Farm -
Asset-
Sewage 221,926.79 19,113.30 202,813.49
related
treatment
system
Jiangyou 1,159,583.7 57,499.98 1,102,083.7 Asset-
338
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Pig Farm - 0 2 related
“5.12”Post
disaster
reconstructi
on project
Jiangyou
Pig Farm -
Income-
Governmen 48,904.35 41,917.98 6,986.37
related
t interest
subsidy
Beijing
Xinliu -
21,738,550. 21,738,550. Asset-
Machinery
00 00 related
purchase
subsidy
Beijing
Xinliu - Pig
optimizatio
46,679,999. 1,000,000.0 1,218,695.6 46,461,304. Asset-
n industry
98 0 8 30 related
developme
nt project
subsidy
Changxing
Animal
Husbandry
- Pig
4,434,833.3 3,500,000.0 7,697,497.9 Asset-
production 237,335.36
2 0 6 related
increase
and supply
guarantee
subsidy
Nanchong
New Hope
- Technical
reform and
transformat
ion Asset-
487,500.00 18,750.00 468,750.00
upgrading related
project
9agricultur
al product
deep
processing)
Nanchong
New Hope
-
Technology Asset-
378,437.50 13,125.00 365,312.50
achieveme related
nt
transformti
on project
Nanchong
New Hope
- Nanchong 1,653,645.7 1,591,145.7 Asset-
62,500.02
2017 5 3 related
municipal
industrial
339
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developme
nt fund
major
industrial
projects
and
technologic
al
transformat
ion project
Luzhou
New Hope
-
Asset-
Environme 91,011.54 7,845.85 83,165.69
related
ntal
protection
subsidy
Yulin New
Hope - Pig
feed Asset-
145,833.01 14,583.36 131,249.65
production related
line
subsidy
Guilin New
Hope - Pig
feed
Asset-
production 60,750.00 13,500.00 47,250.00
related
line 600
production
unit
Guangzhou
Hope -
Boiler Asset-
53,333.52 39,999.90 13,333.62
room related
renovation
subsidy
Guangzhou
Hope -
Electrical Asset-
45,855.11 45,855.11
machinery related
renovation
subsidy
Zhanjiang
Guoxiong -
Equipment
Asset-
technical 976,400.00 27,897.15 948,502.85
related
transformat
ion project
subsidy
Maoming
Liuhe -
Asset-
Technical 969,983.53 27,323.46 942,660.07
related
transformat
ion subsidy
Maoming
Asset-
Liuhe - 730,400.00 21,273.78 709,126.22
related
30,000t/a
340
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Aquatic
extruded
feed
technical
transformat
ion project
award
Jieyang
Guoxiong -
Asset-
Boiler 71,466.53 6,400.02 65,066.51
related
improveme
nt subsidy
Ganzhou
Hope -
Governmen
t subsidy 1,966,666.6 1,866,666.6 Asset-
100,000.02
for special 6 4 related
technical
transformat
ion project
Huaihua
Xiangzhu -
Asset-
Raw 19,200.00 2,400.00 16,800.00
related
material
bulk line
Wuhan
Guoxiong -
Natural gas Asset-
253,333.21 19,000.02 234,333.19
boiler related
governmen
t subsidy
Wuwei
Hope -
Asset-
Natural gas 43,333.15 4,000.02 39,333.13
related
transformat
ion subsidy
Ziyang
Farming -
Asset-
Deepening 15,492.24 9,999.96 5,492.28
related
pilot
subsidy
Ziyang
Farming -
Pig moving
out of Asset-
55,600.00 10,350.00 45,250.00
major related
county
project
subsidy
Ziyang
Farming -
Asset-
Vegetable 191,408.24 18,399.96 173,008.28
related
basket
subsidy
Hope Food
Asset-
- High- 103,960.15 51,979.98 51,980.17
related
quality
341
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pork
products
storage and
transportati
on system
constructio
n and
safety
assurance
technology
integration
and
industrializ
ation
Hope Food
- Quick-
frozen
conditionin
g coated
food
Asset-
processing 6,176.04 3,398.36 2,777.68
related
key
technology
research
and
industrializ
ation
Hope Food
- Research
on the
application
of protein
Asset-
cross- 5,031.92 5,031.92
related
linking
technology
in meat
products
processing
Hope Food
- High-end
meat
products
enzymatic
hydrolysis
and anti-
starch Asset-
127,860.00 63,930.00 63,930.00
regeneratio related
n
technology
and new
product
developme
nt and
application
Hope Food
- A kind of Asset-
23,333.19 10,000.02 13,333.17
whole grain related
vegetarian
342
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intestine
and its
preparation
method
Hope Food
- The
second
batch of
Chengdu
Yuanjiao
County
“One Case
One
Asset-
Meeting”in 643,719.69 36,231.90 607,487.79
related
dustrial
economic
developme
nt fund of
Xinjin
County
Economic
Developme
nt Bureau
Hope Food
- Yak
industry Asset-
102,900.00 14,700.00 88,200.00
chain related
project
(phase 2)
Hope Food
- Key
technology
for
industrializ
Income-
ed 316,000.00 316,000.00
related
production
of Sichuan-
style
convenienc
e dishes
Hope Food
- 2021
Chengdu
green food Income-
100,000.00 100,000.00 200,000.00
industrial related
ecosystem
talent
program
Hope Food
- A patent
portfolio of Income-
100,000.00 100,000.00
meat related
processing
methods
Aba Yak -
Slaughterh Asset-
29,808.45 19,999.98 9,808.47
ouse related
wastewater
343
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treatment
project
Aba Yak -
Cow and
sheep
healthy
Asset-
breeding 259,759.92 16,631.76 243,128.16
related
demonstrati
on center
supporting
fixed assets
Aba Yak -
High
quality Asset-
25,150.65 7,185.84 17,964.81
forage related
demonstrati
on base
Aba Yak -
Technical
improveme
nt of cow
Asset-
and sheep 118,344.73 4,714.68 113,630.05
related
slaughterin
g
production
line
Aba Yak -
Southwest
University Asset-
64,600.00 64,600.00
for related
Nationalitie
s subsidy
Aba Yak -
Yak
industry
chain
technology Asset-
300,300.00 300,300.00
research related
and
integration
demonstrati
on project
Hanzhong
Hope -
Boiler coal- Asset-
76,499.99 9,000.00 67,499.99
to-gas related
governmen
t subsidy
Lanzhou
New Hope
- Boiler Asset-
111,666.49 10,000.02 101,666.47
coal-to-gas related
governmen
t subsidy
Lanzhou
Income-
New Hope 38,200.00 38,200.00
related
- Work-for-
344
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training
governmen
t subsidy
Animal
Husbandry
Technology 2,400,000.0 2,400,000.0 Asset-
- Zhuge 0 0 related
elite
program
Animal
Husbandry
Technology
- Safe and
efficient
biological
1,250,000.0 1,250,000.0 Asset-
feed
0 0 related
technology
system
constructio
n and
integrated
application
Animal
Husbandry
Technology Asset-
400,000.00 400,000.00
- Lab related
renovation
project
Animal
Husbandry
Technology
- New
micro- Asset-
200,000.00 200,000.00
ecological related
and
biological
feed R&D
project
Animal
Husbandry
Technology
- Livestock
and poultry
Asset-
product 800,000.00 800,000.00
related
quality and
safety
control
laboratory
project
Animal
Husbandry
Technology
- Chengdu
Asset-
Talented 150,000.00 150,000.00
related
Drifters
Program -
Establishm
ent of raw
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material
effective
nutrients
evaluation
and
prediction
system
Animal
Husbandry
Technology
- Chengdu
Talented
Drifters
Program -
Asset-
Feed 250,000.00 250,000.00
related
ingredient
biological
fermentatio
n
pretreatme
nt
technology
Animal
Husbandry
Technology
- Feed Asset-
38,000.00 38,000.00
industry related
analysis
and testing
platform
Animal
Husbandry
Technology
- High Asset-
70,000.00 70,000.00
digestibilit related
y piglets
production
technology
Animal
Husbandry
Technology
- Chengdu
Talented
Drifters
Program - Income-
150,000.00 150,000.00
Livestock related
and poultry
feed minor
elements
emission
reduction
technology
Animal
Husbandry
Technology Income-
200,000.00 200,000.00
- Chengdu related
Talented
Drifters
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Program -
Livestock
and poultry
feed low-
resistance
technology
research
Century
Investment
- Chengdu
High-tech
Zone
Economic
Developme Asset-
651,666.46 85,000.02 566,666.44
nt Bureau related
technology
transformat
ion subsidy
obtained in
December
2015
Century
Investment
- Sichuan
pig
industry
chain
quality and
efficiency
Income-
improvmen 425,525.35 408,305.42 17,219.93
related
t
technology
research
and
integration
demonstrati
on (special
fund)
Jingzhou
New Hope Asset-
78,960.53 1,010.10 77,950.43
- Bridge related
subsidy
Jingzhou
New Hope Asset-
582,345.68 7,292.94 575,052.74
- Land related
subsidy
HongYuan
Yak -
Sewage
treatment
system
upgrade Asset-
458,700.00 458,700.00
project related
subsidy of
HongYuan
County
Finance
Bureau
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Zhongyang
Farming - 1,798,500.0 1,699,500.0 Asset-
99,000.00
Henhouse 0 0 related
subsidy
Zhongshan
Farming -
Asset-
Fine pig 62,140.86 10,356.84 51,784.02
related
breed
subsidy
Zhengzhou
Quansheng
2,108,333.3 1,979,166.7 Asset-
- Pig farm 129,166.66
6 0 related
governmen
t subsidy
Beijing
Kinghey -
Cold chain 3,669,545.7 3,595,909.3 Asset-
73,636.32
logistics 1 9 related
project
subsidy
Beijing
Kinghey -
Cold chain
logistics
Asset-
center 300,000.00 150,000.00 150,000.00
related
governmen
t additional
investment
subsidy
Beijing
Kinghey -
Water-
Asset-
saving 12,000.00 9,000.00 3,000.00
related
renovation
project
subsidy
Beijing
Kinghey -
Energy-
saving
Asset-
technologic 271,896.61 65,255.28 206,641.33
related
al
transformat
ion project
award
Liaoning
Kinghey -
Asset-
Cold chain 374,999.65 212,500.02 162,499.63
related
logistics
subsidy
Hebei
Kinghey -
Sewage Asset-
500,000.00 24,999.96 475,000.04
treatment related
project
subsidy
Hebei 56,250.00 11,250.00 45,000.00 Asset-
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Kinghey - related
Boiler
transformat
ion subsidy
of air
pollution
prevention
and control
special
fund
Shibing
New Hope
- Feed
processing
10,000,000. 10,000,000. Asset-
project
00 00 related
infrastructu
re
constructio
n subsidy
Liuhe
Group -
3,000t/a
Marine
agricultural
biological
products
key Asset-
18,847.96 18,847.96
technology related
integration
and
industrial
demonstrati
on project
(special
fund)
Liuhe
Group -
Screening
of marine
drug
sources and
developme
nt of new
drugs for
non- Asset-
100,000.00 100,000.00
antibiotic related
treatment
of multi-
drug
resistance
in poultry
and
livestock
(special
fund)
Liuhe
Asset-
Group - 333,054.87 333,054.87
related
Technology
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center
innovation
capacity
building
project
(special
fund)
Liuhe
Group -
“China-EU
Inter-
Governmen
tal
Cooperatio
Income-
n Program” 710,598.96 300,600.00 409,998.96
related
- European
union
horizon
SFS-46-
2017
(special
fund)
Liuhe
Group -
chicken
antibiotic-
free low
excretion
feed key Income-
251,836.60 33,677.74 218,158.86
technology related
research
and
industrializ
ation
(special
fund)
Liuhe
Group -
Livestock
and poultry
environme
ntal and
Income-
healthy 75,217.19 21,826.93 53,390.26
related
breeding
model and
product
R&D
(special
fund)
Liuhe
Group -
Determinat
ion of acid-
Income-
soluble 4,429.49 4,429.49
related
protein in
feed
ingredients
(special
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fund)
Liuhe
Group -
High
reproductiv
e rate white
feather
Income-
meat duck 500,000.00 252.00 499,748.00
related
breeding
technology
R&D and
application
(special
fund)
Liuhe
Group -
Degradatio
n of
mycotoxins
in prawn
feed Income-
38,501.84 30,958.00 7,543.84
ingredients related
by
fermentatio
n
technology
(special
fund)
Liuhe
Group -
Sino-
european
food safety
process
control Income-
375,120.00 48,455.14 326,664.86
system related
based on
digital
information
technology
(special
fund)
Liuhe
Group -
New duck
breeds
cultivation
4,989,600.0 4,168,089.5 Income-
and 821,510.49
0 1 related
industrializ
ation
demonstrati
on (special
fund)
Liuhe
Group -
Income-
Breeding 5,290.44 830.00 4,460.44
related
pig farm
FMD
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purification
demonstrati
on and
promotion
(special
fund)
Liuhe
Group -
Study on
microbial
degradation
Income-
technology 60,000.00 60,000.00
related
of
mycotoxins
in prawn
feed
ingredients
Liuhe
Group -
Meat duck
healthy,
efficient
and
environme
ntal Income-
203,120.64 203,120.64
breeding related
key
technology
research
and
demonstrati
on (special
fund)
Liuhe
Group -
Taishan
industry
leading
talents -
Key
technologie
s for
breeding of
important 1,783,443.2 1,469,007.1 Income-
314,436.15
economic 8 3 related
characters
in meat
ducks and
cultivation
and
popularizat
ion of new
lines
(special
fund)
Liuhe
Income-
Group - 71,517.25 71,517.25
related
Research
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and
industrializ
ation
promotion
of key
technologie
s of
environme
nt-friendly
antibiotic-
free feed
for pig and
poultry
(special
fund)
Liuhe
Group -
Swine
fever and
pseudorabi
es
Income-
immunizati 7,718.86 7,718.86
related
on program
research on
large-scale
pig farms
(special
fund)
Liuhe
Group -
Rapid
detection
method of
Income-
urea- 134.25 134.25
related
formaldehy
de polymer
in fish meal
(special
fund)
Liuhe
Group -
Research
on the
molecular
mechanism
of plant Income-
80,000.00 80,000.00
polyphenol related
s against
oxidative
stress in
broilers
(special
fund)
Liuhe
Group -
1,485,468.5 1,473,531.5 Income-
Research of 11,937.00
3 3 related
formulation
technology
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of
environme
nt-friendly
and
antibiotic-
free feed
for meat
and poultry
(special
fund)
Liuhe
Group -
Postdoctora
Income-
l research 50,000.00 39,450.00 10,550.00
related
workstation
special
fund
Liuhe
Group -
Technology
for
Economy
2020 -
FMD
prevention Income-
723,142.40 622,182.69 100,959.71
and related
purification
technology
promotion
and
application
(special
fund)
Liuhe
Group -
Chicken
and pig
intestinal
health
regulation
and
Income-
antibiotic 8,490.57 8,490.57
related
replacemen
t
technology
patent
navigation
project
(special
fund)
Jinan New
Hope -
5,366,232.9 5,295,932.9 Asset-
Land 70,300.02
7 5 related
transfer
price
Daqing
3,903,700.0 3,703,700.0 Asset-
Liuhe - 200,000.00
0 0 related
Support
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fund
Taihe New
Hope -
Asset-
Governmen 849,452.00 47,184.00 802,268.00
related
t land
rebate
Shan
County
Food -
7,980,000.3 7,885,000.3 Asset-
Governmen 94,999.98
0 2 related
t supported
infrastructu
re fund
Anyang
1,546,832.4 1,524,734.8 Asset-
Liuhe - 22,097.64
6 2 related
Land rebate
Tuanfeng
New Hope
- Asset-
122,278.44 23,666.64 98,611.80
Governmen related
t land
subsidy
Pingxiang
New Hope 3,640,666.7 3,413,125.0 Asset-
227,541.66
- Land use 4 8 related
right
Gaotang
Rongda 2,418,999.7 2,389,499.7 Asset-
29,500.02
Feed - 4 2 related
Land rebate
Fuyang
Liuhe -
3,427,906.5 3,385,802.1 Asset-
Land 42,104.46
9 3 related
leveling
subsidy
Shanghe
Feed - Asset-
144,444.34 16,666.68 127,777.66
Boiler related
subsidy
Zoucheng
Liuhe Feed 2,619,718.3 2,588,028.1 Asset-
31,690.14
- Land 2 8 related
rebate
Zhengzhou
HongYuan
Feed -
Fermentati
Asset-
on 104,166.97 13,888.86 90,278.11
related
equipment
research
fund
subsidy
Henan
Dengzhou
Asset-
Branch - 41,739.25 4,173.90 37,565.35
related
Boiler
subsidy
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Henan
Dengzhou 2,519,393.9 2,485,500.6 Asset-
33,893.34
Branch - 4 0 related
Land rebate
Yanshi
Liuhe -
1,972,500.3 1,946,200.4 Asset-
Investment 26,299.98
9 1 related
introductio
n subsidy
Tongling
Huaren -
Infrastructu 2,072,996.2 1,999,398.7 Asset-
73,597.50
re 5 5 related
constructio
n subsidy
Xiaoyi
Food -
Asset-
Base 766,665.72 766,665.72
related
constructio
n project
Xiaoyi
Food -
60,000t/a
Chicken
cutting
2,320,001.0 2,320,001.0 Asset-
production
0 0 related
line
expansion
and base
constructio
n project
Xiaoyi
Food - 1,899,999.9 1,899,999.9 Asset-
Testing lab 8 8 related
project
Pingdu
Liuhe -
2,031,055.4 2,004,505.7 Asset-
Governmen 26,549.76
8 2 related
t land
subsidy
Fuxin
5,246,159.3 5,187,433.6 Asset-
Farming - 58,725.66
1 5 related
Land rebate
Guantao
Feed - Gas
boiler low Asset-
50,892.93 3,214.26 47,678.67
nitrogen related
renovation
subsidy
Fuxin
Hehui -
Fumeng
County 2,131,944.6 2,090,278.0 Asset-
41,666.64
livestock 5 1 related
and poultry
scale farm
standard
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ecological
constructio
n project
2015
Laoting
Xinmeizi -
9,520,000.0 9,100,000.0 Asset-
Land 420,000.00
0 0 related
subsidy
(new)
Laoting
Xinmeizi
Breeding -
Asset-
Beautiful 77,819.10 4,813.56 73,005.54
related
countryside
constructio
n fund
Laibin
Xinhao -
Large-scale Asset-
462,498.10 12,499.98 449,998.12
pig farm related
constructio
n subsidy
Laibin
Xinhao -
Livestock
and poultry
2,744,001.1 2,695,001.1 Asset-
manure 49,000.02
2 0 related
resource
utilization
project
subsidy
Laibin
Xinhao -
Manure
resource 2,294,597.0 2,233,172.0 Asset-
61,425.00
utilization 5 5 related
constructio
n project
subsidy
Laibin
Xinhao -
Chenliu
Asset-
stable pig 398,333.33 10,000.02 388,333.31
related
production
constructio
n project
Laoting
Shengxiang
3,070,267.4 3,033,052.0 Asset-
- Land 37,215.36
2 6 related
compensati
on
Weifang
New Hope
- Land 5,098,485.0 5,037,303.1 Asset-
61,181.82
purchase 0 8 related
compensati
on
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Weifang
New Hope
- Research
and
industrializ
ation
promotion
of key Income-
788.43 788.43
technologie related
s of
environme
nt-friendly
antibiotic-
free feed
for pig and
poultry
Weifang
New Hope
Income-
- Yuandu 215,864.10 400,000.00 66,750.58 549,113.52
related
talent
project
Weifang
New Hope
- Research
and
integration
of key
technologie
Income-
s for high- 200,000.00 200,000.00
related
value
utilization
of
unconventi
onal
protein
ingredients
Weifang
New Hope
- Two new
Income-
party 6,000.00 6,000.00
related
organizatio
n work
funds
Weifang
New Hope
- Road
Income-
constructio 80,000.00 80,000.00
related
n
compensati
on
Weifang
New Hope
- Key
technology Income-
20,000.00 20,000.00
research related
and
industrializ
ation of
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efficient
and
environme
ntal
friendly
layer feed
Zunhua
Feed - Asset-
64,000.24 7,999.98 56,000.26
Boiler related
subsidy
Wuhan
Liuhe - Asset-
62,500.00 62,500.00
New shed related
subsidy
Sichuan
Trade -
Sichuan pig
refined
intelligent
breeding
and
environme Asset-
331,250.00 331,250.00
ntal precise related
control
special
fund
2021ZDZX
0011
(special
fund)
Jiangmen
Liuhe -
Bonus fund
for R&D
Income-
institution 127,112.92 127,112.92
related
constructio
n of large
industrial
enterprises
Jiangmen
Liuhe -
2019
Annual
Income-
science and 137,700.00 137,700.00
related
technology
developme
nt support
fund
Jiangmen
Liuhe -
Engineerin
g
Income-
technology 123.39 123.39
related
R&D
center
project
subsidy
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Qingdao
Jiazhi -
Special
1,000,000.0 Income-
subsidy for 50,000.00 950,000.00
0 related
new-type
R&D
institution
Fenglan
Technology
-
Microecolo
Income-
gics 8,899.64 4,450.02 4,449.62
related
product
developme
nt and
application
Fenglan
Technology
- New
microecolo
gics and Income-
643,016.31 121,771.08 521,245.23
biological related
feed R&D
and
industrializ
ation
Fenglan
Technology
- pilot trial
and
industrializ
ation
demonstrati Income-
4,000.36 1,999.98 2,000.38
on of related
nutrition
regulation
technology
for healthy
pig
breeding
Fenglan
Technology
-
Cultivation
and
industrializ
ation
demonstrati
on of Income-
55,000.36 27,499.98 27,500.38
“Guoxiong related
” branded
biological
high-
performanc
e pig
compound
feed and
high
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survival
rate grass
carp
breeding
compound
feed.
Fenglan
Technology
-
Transforma
tion and
application
project
based on
Income-
the 44,307.46 6,182.46 38,125.00
related
biological
extraction
of Lutein
crystals
from
marigold
dried
flowers
Fenglan
Technology
- New safe
and
Income-
efficient 19,999.64 10,000.02 9,999.62
related
pig feed
industrializ
ation
application
Fenglan
Technology
- Integrated
research
and
industrializ
ation of
key Income-
300,000.00 300,000.00
technologie related
s in the
production
of safe and
high
digestibilit
y piglet
feed
Donghai
Xinhao -
Income-
Loan 263,227.86 35,957.46 227,270.40
related
interest
subsidy
New Hope
Farming -
Income-
Chengdu 168,264.46 24,264.46 144,000.00
related
Talented
Drifters
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Program
New Hope
Farming -
Counterpar
Income-
t funding 252,000.00 252,000.00
related
from Xinjin
Elite
program
Ziyang
Jiahao -
Scientific
Income-
and 210,000.00 210,000.00
related
technical
training
program
Pengshan
New Hope
- Integrated
research of
key
technologie Income-
100,000.00 100,000.00
s in the related
production
of safe and
high
digestibilit
y piglets
Pengshan
New Hope
- Subsidy
for
Income-
continuous 39,179.21 39,179.21
related
operations
during
Spring
Festival
Pengshan
New Hope
- Monetary Income-
41,666.69 41,666.69
reward for related
good start
of 2020
Huzhou
Haihuang - Income-
345,720.00 345,720.00
Constructio related
n reward
Linyi Yihe
-
Governmen Income-
125,848.70 125,848.70
t risk related
compensati
on
Weifang
Liuhe -
Income-
Research 367,200.00 249,000.00 557,740.00 58,460.00
related
and
industrializ
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ation
promotion
of key
technologie
s of
environme
nt-friendly
antibiotic-
free feed
for pig and
poultry
Xiantao
Feed -
Governmet
n subsidy Income-
14,890.69 14,890.69
for related
pandemic-
related
interest
Fuxin
Breeding
Poultry
Branch - 2,499,373.6 1,249,686.8 1,249,686.8 Income-
Subsidy for 8 4 4 related
in-house
farm
demolition
Lijin
Breeding
Ducks - Income-
10,000.00 10,000.00
Subsidy for related
standard
revision fee
363,219,90 79,799,453. 28,712,355. 413,627,37
Total 679,625.89
1.05 60 54 3.22
Other remarks:
Note: “Other changes” in deferred income this year is the effect of loan discounts offsetting current financial expenses.
The Company is required to comply with disclosure requirements set forth in the Self-regulatory Guideline No.3 of Shenzhen
Stock Exchange for Listed Companies—Industry Information Disclosure with respect to livestock, poultry and aquaculture related
businesses.
36. Share capital
Unit: Yuan
Current increase or decrease (+, -)
Beginning Provident Ending
balance New shares fund balance
Bonus shares Others Subtotal
issued converted
into shares
Total shares 4,505,211,34 -120,268.00 -120,268.00 4,505,091,07
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2.00 4.00
Other remarks:
Note:
1. According to the resolution of the first extraordinary general meeting in 2022 of the Company, the Proposal to Cancel Some
Stock Options and Repurchase Some Restricted Stocks for Cancellation was deliberated and approved. In view of the fact that two
of the incentive objects of the first grant have left office due to personal reasons, which is no longer in line with the provisions on
incentive object in the Company's equity incentive plan, the board of directors deliberated and decided to cancel the qualifications
of the above-mentioned incentive objects and repurchase and cancel 168,750 restricted shares that have been granted but have not
yet been released for sale.
2. According to the Prospectus for the Public Offering of A-Share Convertible Corporate Bonds by New Hope Liuhe Co., Ltd., the
convertible corporate bonds “Hope Convertible Bond 2” issued by the Company became convertible on May 9, 2022, and a total
of 48,482 shares were added due to the conversion of convertible bonds into shares in this period.
37. Other equity instruments
(1) Basic information about other financial instruments such as preferred shares and perpetual bonds outstanding at the
end of the period
(1) Convertible corporate bonds
1. As approved by CSRC in the “CSRC Approval [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
from SZSE in the document “S.Z.S. [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 Convertible Bonds” and bond code “127015”. The
convertible corporate bonds are in existence from January 3, 2020 to January 2, 2026, and convertible from July 9, 2020 to
January 2, 2026.
2. As approved by CSRC in the “CSRC Approval [2021] No. 1351”, the Company publicly issued 81.50 million convertible
corporate bonds with par value of 100 Yuan each on November 2, 2021, for a total issue amount of 8.15 billion Yuan. With the
consent from SZSE, the Company’s 8.15 billion Yuan convertible corporate bonds were listed for trading on SZSE as of
November 29, 2021, under the bond abbreviation “Hope Convertible Bond 2” and bond code “127049”. The convertible corporate
bonds are in existence from November 2, 2021 to November 1, 2027, and convertible from May 9, 2022 to November 1, 2027.
(2) Perpetual bond
Perpetual bond 1: on December 25, 2020, Xiamen International Trust Co., Ltd. (the lender) issued a renewable loan of 800
million Yuan to the Company (the 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%
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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%.
Perpetual bond 2: on December 28, 2020, Lujiazui International Trust Co., Ltd. (the lender) issued a perpetual loan of 1.0
billion Yuan to the Company (the 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 comprises 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 : ① loan
interest rate =initial loan interest rate + [300bp]; ② investment interest rate = base rate at the interest rate resetting date + initia l
interest spread +[300bp] (initial interest spread =initial investment interest rate – base rate at the value date). This perpetual bond
has been redeemed in the current period.
Perpetual bond 3: from May 2021 to June 2022, ZhongYuan Trust Co., Ltd. (The lender) issued a renewable loan of 950
million Yuan to the Company (the borrower), which has been redeemed in the current period, 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 borrowe r-
designated account, which date is the value date. Each year after the expiration of the initia l 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 interests and derivative yields upon the expiration of each loan
period. The loan interest rate within the initial loan period is 6.3% and after the expiration of the initial loan period, the annua l
interest rate will be increased once a year by 200 basis points (2.00%), and by analogy, subject to the maximum loan interest rate
of 9.0%.
Perpetual bond 4: on June 30, 2021, Xiamen International Trust Co., Ltd. (the lender) issued a renewable loan of 260 million
Yuan to the Company (the 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%. This perpetual bond has been redeemed in the current period.
Perpetual bond 5: as approved by CSRC in the “CSRC Approval [2020] No. 977”, the Company publicly issued renewable
corporate bonds (phase I) to professional investors on May 28, 2021 for an actual issue size of 1.0 billion Yuan at an issue price of
100 Yuan each. This bond was listed for trading bilaterally on SZSE centralized bidding system and comprehensive protocol
trading platform on June 8, 2021, with bond abbreviation “21 Hope Y1”, bond code “149492”. The basic term is 1 year, and the
issuer has the right to exercise the option to renew at the each of the agreed basic term and each renewal term to extend the basis
term agreed by 1 period; the bond will be honored in full upon maturity if the issuer does not exercise the renewal option. This
phase of bond is subject to fixed interest rate, simple interest accrued on a yearly basis without compound interest, with the
nominal interest rate for the first period being 5.50%, which will be reset once for each subsequent period. The nominal inte rest
rate in subsequent periods will be adjusted to the then current base rate plus initial margin plus 300 basis points, of which the
initial margin is the nominal interest rate of the first period minus the initial base rate. This perpetual bond has been redeemed in
the current period.
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(2) Table of changes in financial instruments such as preferred shares and perpetual bonds outstanding at the end of the
period
Unit: Yuan
Outstandin Beginning Current increase Current decrease Ending
g financial
instruments Amount Book value Amount Book value Amount Book value Amount Book value
Hope
191,805,04 9,496,756.0 191,791,29
Convertible 9,497,437 681 13,744.58
2.62 0 8.04
bonds
Hope
1,799,561,5 81,492,985. 1,799,406,6
Convertible 81,500,000 7,015 154,894.78
62.99 00 68.21
Bond 2
Perpetual 3,809,200,0 200,000,00 2,760,000,0 1,249,200,0
bonds 00.00 0.00 00.00 00.00
5,800,566,6 200,000,00 2,760,168,6 90,989,741. 3,240,397,9
Total 90,997,437 7,696
05.61 0.00 39.36 00 66.25
Remarks on the current increase or decrease in other equity instruments, causes of changes and basis of related accounting
treatment:
Other remarks:
38. Capital reserve
Unit: Yuan
Item Beginning balance Current increase Current decrease Ending balance
Capital premium -
(share capital 8,681,470,956.22 164,961,206.48 2,713,136.34 8,843,719,026.36
premium)
Other capital reserves 1,663,396,431.65 11,775,989.19 1,675,172,420.84
Wherein: changes in
other equities in 1,653,948,392.97 11,775,989.19 1,665,724,382.16
invested entity
Provision for donated
non-cash assets 2,544,124.59 2,544,124.59
received
Others 6,903,914.09 6,903,914.09
Total 10,344,867,387.87 176,737,195.67 2,713,136.34 10,518,891,447.20
Other remarks, including on current increase or decrease and cause of changes:
1. Among the current increase in capital (share capital) premium, 163,292,806.96 Yuan is the effect of the current change in
minority interest, 682,126.08 Yuan of it is capital reserve increased by conversion of bonds into shares as “Hope Convertible
Bonds” and “Hope Convertible Bond 2” become convertible; 986,273.44 Yuan of it is the effect of capital reserve increased by
releasing of restricted stock and exercise of stock options by incentive objects after the satisfaction of conditions for
exercise/lifting of restrictive condition for the second exercise period/lifted period under the 2019 stock option and restricted stock
incentive plan, while carrying over other capital reserves recognized in the vesting period;
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2.“Other changes in equities in invested entity” under the item of other capital reserves are the share of the Company in the capita l
reserve changes of Big Herdsman and other companies accounted for under equity method, as calculated by the Company at the
shareholding ratio.
39. Treasury shares
Unit: Yuan
Item Beginning balance Current increase Current decrease Ending balance
Treasury shares -
purchase price for 1,189,155,261.99 2,934,605.65 1,186,220,656.34
share repurchase
Total 1,189,155,261.99 2,934,605.65 1,186,220,656.34
Other remarks, including on current increase or decrease and cause of changes:
1. According to the Prospectus for the Public Offering of A-Share Convertible Corporate Bonds by New Hope Liuhe Co., Ltd., the
convertible corporate bonds “Hope Convertible Bonds” issued by the Company became convertible on July 9, 2020, and a total of
3,087 treasury shares, an amount of 52,719.31 Yuan, were reduced due to the conversion of convertible bonds into shares in this
period.
2. According to the resolution of the first extraordinary general meeting in 2022 of the Company, the Proposal to Cancel Some
Stock Options and Repurchase Some Restricted Stocks for Cancellation was deliberated and approved. In view of the fact that two
of the incentive objects of the first grant have left office due to personal reasons, which is no longer in line with the provisions on
incentive object in the Company's equity incentive plan, the board of directors deliberated and decided to cancel the qualifications
of the above-mentioned incentive objects and repurchase and cancel 168,750 restricted shares that have been granted but have not
yet been released for sale, 2,881,886.34 Yuan of treasury shares reduced.
40. Other comprehensive income
Unit: Yuan
Current amount
Minus: Minus:
amount amount
previously previously
included in included in After-tax
After-tax
Beginning Current other other amount Ending
Item Minus: amount
balance amount comprehen comprehen attributable balance
income tax attributable
before sive sive to minority
expense to parent
income tax income and income and shareholder
company
currently currently s
transferred transferred
to profit or to retained
loss earnings
I. Other
comprehen
sive
- -
income that 1,718,238.7 -
1,670,360.0 1,252,770.0 465,468.75
can not be 5 417,590.00
0 0
reclassified
into profit
or loss
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Other
comprehen
sive
income that
- -
cannot be 1,718,238.7 -
1,670,360.0 1,252,770.0 465,468.75
transferred 5 417,590.00
0 0
to profit or
loss under
the equity
method
II. Other
comprehen
sive
- - - - -
income to
498,451,31 150,925,12 140,162,39 10,762,737. 638,613,70
be
9.49 7.50 0.34 16 9.83
reclassified
into profit
or loss
Wherein:
other
comprehen
sive
income that - - - -
9,517,289.5
can be 44,710,067. 33,532,550. 11,177,516. 24,015,261.
5
transferred 89 92 97 37
to profit or
loss under
the equity
method
Foreig
n currency - - - -
statement 507,968,60 106,215,05 106,629,83 414,779.81 614,598,44
translation 9.04 9.61 9.42 8.46
difference
Total other
- - - - -
comprehen
496,733,08 152,595,48 141,415,16 11,180,327. 638,148,24
sive
0.74 7.50 0.34 16 1.08
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:
41. Surplus reserve
Unit: Yuan
Item Beginning balance Current increase Current decrease Ending balance
Legal surplus reserve 3,390,832,660.13 1,266,833.67 3,389,565,826.46
Total 3,390,832,660.13 1,266,833.67 3,389,565,826.46
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.
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42. Undistributed profits
Unit: Yuan
Item Current amount Amount of the previous period
Undistributed profits at the end of the
11,182,964,166.86 21,218,846,353.41
previous period before adjustment
Beginning undistributed profits after
11,182,964,166.86 21,218,846,353.41
adjustment
Plus: net profits attributable to the owner
-4,139,743,764.00 -3,415,066,136.23
of the parent company in current period
Minus: payment of interest on perpetual
154,056,883.65 58,773,366.67
bonds
Subsidiary deregistration -1,266,833.67
Ending undistributed profits 6,890,430,352.88 17,745,006,850.51
Breakdown of adjustment 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 undistributed 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.
43. Business revenue and operating costs
Unit: Yuan
Current amount Amount of the previous period
Item
Revenue Cost Revenue Cost
Main business 62,112,030,662.69 61,908,237,146.88 61,239,404,392.13 58,965,357,708.57
Other businesses 217,500,413.95 155,317,027.49 279,170,168.54 215,655,019.72
Total 62,329,531,076.64 62,063,554,174.37 61,518,574,560.67 59,181,012,728.29
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 2,184,511,867.85 Yuan, of which 2,184,511,867.85 Yuan is expected to be recognized in 2021, Yuan is
expected to be recognized in , and Yuan is expected to be recognized in .
Other remarks
44. Taxes and surcharges
Unit: Yuan
Item Current amount Amount of the previous period
Urban maintenance and construction tax 8,157,854.01 8,535,768.44
Educational surcharge 3,910,704.38 4,051,367.72
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Resources tax 821,108.26 1,027,469.52
Real estate tax 23,689,293.21 20,944,406.46
Land use tax 23,370,825.09 22,209,412.71
Vehicle and vessel use tax 334,668.39 282,296.11
Stamp duty 39,813,485.11 36,435,765.90
Local educational surcharge 2,595,894.61 2,729,132.41
Environmental protection tax 1,057,201.91 1,306,191.41
Water conservancy fund 1,665,755.38 2,274,239.76
Others 4,236,604.14 3,345,873.66
Total 109,653,394.49 103,141,924.10
Other remarks:
45. Selling expenses
Unit: Yuan
Item Current amount Amount of the previous period
Payroll 703,907,701.61 697,011,070.71
Office costs 1,953,345.13 2,274,379.32
Travel expenses 38,320,876.62 55,079,949.77
Post and telecommunication expenses 2,394,264.25 3,013,135.11
Machine and materials consumption 2,444,749.73 2,516,268.57
Amortization of low-value consumables 158,504.05 93,874.46
Depreciation expenses 2,445,340.93 3,021,954.21
Right-of-use asset depreciation cost 379,980.15 197,779.63
Rental expenses 5,500,024.83 6,366,471.44
Labor protection expenses 284,025.25 538,283.32
Transportation expenses 10,457,378.50 8,807,452.39
Conference expenses 1,607,780.92 4,774,560.83
Water and electricity expenses 231,830.39 181,591.52
Inspection and quarantine expenses 3,519,754.82 1,821,656.09
Advertising expenses 2,416,471.58 3,916,108.85
Publicity expenses 22,870,847.96 35,096,337.54
After-sales service expenses 6,172,966.71 6,179,779.75
Handling expenses 25,506,796.81 18,872,656.74
Warehousing expenses 8,953,393.27 11,309,735.77
Market management expenses 34,868,490.40 22,364,805.97
Return loss expenses 2,119,352.67 1,858,296.11
Amortization of revolving materials 1,222,128.14 869,658.60
Total 877,736,004.72 886,165,806.70
Other remarks:
46. Management expenses
Unit: Yuan
Item Current amount Amount of the previous period
Payroll 1,228,707,416.13 1,040,754,067.13
Office costs 22,691,291.07 31,209,610.31
Travel expenses 41,824,995.22 56,580,573.62
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Post and telecommunication expenses 14,376,133.59 13,536,814.59
Machine and materials consumption 35,379,705.17 46,125,058.35
Amortization of low-value consumables 3,117,067.12 7,197,912.42
Depreciation expenses 279,806,265.35 166,134,796.45
Right-of-use asset depreciation cost 158,270,822.25 53,258,842.72
Rental expenses 37,431,043.05 72,122,853.78
Labor protection expenses 6,275,220.18 9,074,376.42
Repair costs 50,989,109.62 47,563,264.23
Property insurance expenses 85,117,608.93 61,811,343.01
Transportation expenses 33,471,363.29 35,981,240.07
Membership dues and conference
9,250,616.84 9,457,953.56
expenses
Water and electricity expenses 44,266,637.95 33,811,388.45
Business entertainment expenses 43,498,302.73 45,241,434.13
Intermediary fees 149,325,017.14 137,859,418.66
Inventory loss, destruction and scrapping 30,140,332.77 50,406,918.32
Environmental protection fee 30,458,375.88 25,582,280.29
Trademark royalties 3,786,055.43 3,378,108.82
Amortization of intangible assets 43,067,557.99 42,289,664.04
Amortization of long-term unamortized
39,779,845.95 42,545,998.10
expenses
Inspection and test fees 16,056,378.89 15,978,255.79
Startup costs 9,854.66 2,102,671.61
Taxes and charges 6,645,997.74 5,028,941.76
Expenses of board of directors 222,300.51 443,109.53
Heating expenses 13,158,084.55 4,576,417.44
Mutual fund for breeding 1,507,026.37 4,559,116.50
Equity incentive expenses 741,812.52 2,731,935.90
Safe production expenses 1,517,771.10 3,090,888.99
Others 921,062.09 806,687.82
Total 2,431,811,072.08 2,071,241,942.81
Other remarks
47. R&D expenses
Unit: Yuan
Item Current amount Amount of the previous period
Payroll 104,758,058.39 86,914,561.51
Office costs 206,321.62 466,581.67
Travel expenses 4,319,359.01 5,112,870.78
Post and telecommunication expenses 252,472.59 218,105.08
Direct materials 21,675,892.11 34,141,977.43
Fuel and power 294,076.12 731,656.66
Costs of development and manufacture
47,535.39 67,227.07
of tools and molds
Pilot plant test costs 56,967.74 51,334.75
On-site test costs 333,466.00 24,793.24
Debugging and maintenance costs 29,558.38 340,477.46
Inspection and test fees 1,443,018.21 2,383,257.27
Labor protection expenses 11,352.27 46,672.69
Transportation expenses 176,999.45 111,285.73
Labor costs 192,107.80 417,082.85
Training costs 27,520.00 13,973.00
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Design fee 233,809.70 355,250.82
Expert consulting fee 342,590.00 484,831.45
Cooperative development costs 1,057,900.00 587,352.61
IP affairs expenses 284,532.43 262,996.08
Meeting expenses 238,986.02 600,960.19
Depreciation expenses 4,789,374.42 3,969,114.14
Right-of-use asset depreciation cost 812,758.50 619,955.89
Rental expenses 1,845,683.17 2,351,286.59
Amortization of intangible assets 1,519,623.88 1,613,229.11
Equity incentive expenses 244,460.94 874,219.49
Intermediary fees 118,550.81 223,444.15
Amortization of long-term unamortized
3,907,283.65 3,923,777.16
expenses
Others 814,349.32 168,525.02
Total 150,034,607.92 147,076,799.89
Other remarks
48. Financial expenses
Unit: Yuan
Item Current amount Amount of the previous period
Interest expenditure 755,642,004.97 807,823,061.58
Minus: interest revenue 91,683,189.02 70,004,378.51
Exchange loss 185,460,140.19 163,575,296.35
Minus: exchange income 102,858,480.50 159,037,479.82
Others 14,421,401.60 11,207,543.37
Total 760,981,877.24 753,564,042.97
Other remarks
49. Other revenue
Unit: Yuan
Source of other income Current amount Amount of the previous period
Amortization of deferred income - assets 23,732,103.67 10,924,081.38
Amortization of deferred income -
4,980,251.87 4,267,449.45
income
Rebate of handling fee on withheld
4,444,326.67 7,822,903.89
personal income tax
Government subsidy related to daily
69,436,029.68 84,218,074.40
business activities
Subtotal 102,592,711.89 107,232,509.12
50. Investment income
Unit: Yuan
Item Current amount Amount of the previous period
Income on long-term equity investments
1,026,435,491.87 1,176,426,216.33
accounted for under the equity method
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Investment income from disposal of
-2,833,026.52 6,714,394.26
long-term equity investments
Investment income on held-for-trading
-1,075.48
financial assets during the holding period
Investment income from disposal of
27,503,896.43 -6,543,468.76
held-for-trading financial assets
Total 1,051,106,361.78 1,176,596,066.35
Other remarks
51. Income from change in fair value
Unit: Yuan
Source of income from change in fair
Current amount Amount of the previous period
value
Held-for-trading financial assets 2,274,903.97 -5,103,677.64
Wherein: income from change in
2,274,903.97 -5,103,677.64
fair value of derivative instruments
Held-for-trading financial liabilities -3,529,216.09 -5,983,113.47
Total -1,254,312.12 -11,086,791.11
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.
52. Credit impairment loss
Unit: Yuan
Item Current amount Amount of the previous period
Bad debt loss from other receivables -36,062,005.23 -9,221,669.04
Bad debt loss from accounts receivable -28,125,524.43 -67,886,890.34
Total -64,187,529.66 -77,108,559.38
Other remarks
53. Asset impairment loss
Unit: Yuan
Item Current amount Amount of the previous period
II. Loss on inventory revaluation and
impairment loss of contract performance -1,328,087,107.41 -1,002,396,508.13
cost
Total -1,328,087,107.41 -1,002,396,508.13
Other remarks:
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54. Income from asset disposal
Unit: Yuan
Source of income from asset disposal Current amount Amount of the previous period
Income from disposal of fixed assets -17,806,686.62 12,795,409.17
Income from disposal of productive
24,599,325.65 10,101,371.76
biological assets
Income from disposal of intangible assets 7,547.17
Income from disposal of right-of-use
1,321,081.84 39,947.05
assets
Total 8,121,268.04 22,936,727.98
55. Non-business revenue
Unit: Yuan
Amount of the previous Amount included in current
Item Current amount
period non-recurring profit or loss
Penalty revenue 6,007,637.11 8,199,548.36 6,007,637.11
Gains on inventory taking 585,750.56 659,840.28 585,750.56
Payables that cannot be paid 28,097,423.49 20,555,500.36 28,097,423.49
Revenue from insurance
15,465,458.26 23,694,811.90 15,465,458.26
indemnities
Effect of business
combination not under 320,326.09
common control
Others 19,957.00 61,513.64 19,957.00
Total 50,176,226.42 53,491,540.63 50,176,226.42
The Company is required to comply with disclosure requirements set forth in the Self-regulatory Guideline No.3 of Shenzhen
Stock Exchange for Listed Companies—Industry Information Disclosure with respect to livestock, poultry and aquaculture related
businesses.
56. Non-business expenditure
Unit: Yuan
Amount of the previous Amount included in current
Item Current amount
period non-recurring profit or loss
External donations 6,643,690.80 5,765,302.83 6,643,690.80
Total loss from scrapping and
destruction of non-current 625,552,186.98 875,143,928.70 625,552,186.98
assets
Wherein: loss from scrapping
8,008,656.28 7,119,901.12 8,008,656.28
and destruction of fixed assets
Loss from scrapping and
destruction of productive 615,526,156.05 863,510,623.10 615,526,156.05
biological assets
Loss from scrapping of
intangible assets
Loss from destruction and
scrapping of construction in 2,017,374.65 4,513,404.48 2,017,374.65
progress
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Penalty expenses 5,513,270.99 7,295,729.75 5,513,270.99
Indemnities/liquidated
66,717,487.67 14,054,891.39 66,717,487.67
damages
Extraordinary losses 54,131,466.43 426,691,350.36 54,131,466.43
Loss on inventory taking 804,096.34 1,764,255.66 804,096.34
Others 10,822.47 25,502.37 10,822.47
Total 759,373,021.68 1,330,740,961.06 759,373,021.68
Other remarks:
57. Income tax expenses
(1) Statement of income tax expenses
Unit: Yuan
Item Current amount Amount of the previous period
Current income tax expense 139,375,940.65 242,897,979.28
Deferred income tax expense 1,381,982.47 12,915,456.80
Total 140,757,923.12 255,813,436.08
(2) Process of adjustment to accounting profits and income tax expenses
Unit: Yuan
Item Current amount
Total profits -5,024,350,998.56
Income tax expenses calculated at statutory/applicable tax rates -1,256,087,749.64
Effect of subsidiaries subject to different tax rates -165,268,372.30
Effect of adjustment to income tax in previous periods -16,843,036.79
Effect of nontaxable income 1,494,436,988.67
Effect of non-deductible costs, expenses and losses 27,784,772.48
Effect of use of deductible losses with respect to which
-13,761,426.88
deferred income tax assets are not previously recognized
Effect of deductible temporary difference or deductible loss of
224,688,637.14
deferred income tax assets not recognized in the current period
Effect of profit and loss of joint ventures and affiliates
-153,686,772.63
accounted for under the equity method
Effect of additional R&D cost deduction -505,116.93
Income tax expense 140,757,923.12
Other remarks:
58. Other comprehensive income
Refer to Note VII. 40“Other comprehensive income” for details.
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59. Items in cash flow statement
(1) Other cash received in connection with operating activities
Unit: Yuan
Item Current amount Amount of the previous period
Various temporary receipts received 396,547,699.46 392,988,872.62
Various subsidies received 153,679,809.95 144,498,528.29
Interest revenue from bank deposits 38,242,695.66 51,851,415.89
Penalty revenue 6,007,637.11 8,199,548.36
Others 15,574,769.29 20,359,885.82
Total 610,052,611.47 617,898,250.98
Remarks on other cash received in connection with operating activities:
(2) Other cash paid in connection with operating activities
Unit: Yuan
Item Current amount Amount of the previous period
Various provisional payment and deposit
1,793,425,249.74 688,212,593.82
paid
Bank commission, etc. 14,421,401.60 9,207,543.37
Selling expenses 171,002,982.03 184,971,469.08
Management expenses 644,651,021.38 660,556,643.42
R&D expenses 34,003,048.14 49,161,942.59
Penalty expenses 5,513,270.99 7,295,729.75
Others 73,372,000.94 19,845,696.59
Total 2,736,388,974.82 1,619,251,618.62
Remarks on other cash paid in connection with operating activities:
(3) Other cash received in connection with investing activities
Unit: Yuan
Item Current amount Amount of the previous period
Futures margin recovered and interest
108,562,993.32 10,983,654.00
rate swap collections
Total 108,562,993.32 10,983,654.00
Remarks on other cash received in connection with investing activities:
(4) Other cash paid in connection with investing activities
Unit: Yuan
Item Current amount Amount of the previous period
Prepaid investment 2,500,000.00 20,000,000.00
Interest rate swaps paid 19,088,883.49 40,645,193.13
Various margins, etc/ 100,993,622.60 8,330,400.00
376
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Total 122,582,506.09 68,975,593.13
Remarks on other cash paid in connection with investing activities:
(5) Other cash received in connection with financing activities
Unit: Yuan
Item Current amount Amount of the previous period
Cash received from issuance of bonds 1,997,600,000.00
Futures margin obtained by warehouse
receipt pledge at Dalian Commodity 62,991,232.00
Exchange
Recovery of margin for borrowings 445,782.98
Total 63,437,014.98 1,997,600,000.00
Remarks on other cash received in connection with financing activities:
(6) Other cash paid in connection with financing activities
Unit: Yuan
Item Current amount Amount of the previous period
Cash paid for repurchase of company
834,549,312.60
shares
Due diligence and guarantee fees for
4,852,830.18 2,000,000.00
borrowings, etc.
Cash distributed to minority shareholders
2,800,037.71 7,569.93
due to company deregistration
Cash paid for acquisition of minority
219,700.00 299,837,798.61
equities
Repayment of borrowings through New
600,000,000.00
Hope Group
Payment of rental and interest on right-
387,061,027.24 412,811,061.26
of-use assets
Various margins for issuance of perpetual
182,881,556.64
bonds and notes discounted
Redemption of perpetual bonds 2,760,000,000.00
Return of futures margin obtained by
warehouse receipt pledge at Dalian 41,023,232.00
Commodity Exchange
Total 3,378,838,383.77 2,149,205,742.40
Remarks on other cash paid in connection with financing activities:
60. Additional information about cash flow statement
(1) Additional information about cash flow statement
Unit: Yuan
Additional information Current amount Prior amount
377
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1. Net profit adjusted to cash flow from
operating activities:
Net profits -5,165,108,921.68 -2,955,402,016.55
Plus: assets impairment provision 1,392,274,637.07 1,079,505,067.51
Depreciation of fixed assets,
depletion of oil and gas assets and
2,375,211,157.38 2,530,183,281.49
depreciation of productive biological
assets
Depreciation of right-of-use
429,495,963.52 276,988,624.83
assets
Amortization of intangible assets 49,994,378.81 49,322,931.43
Amortization of long-term
79,599,467.67 121,460,154.30
unamortized expenses
Loss from disposal of fixed
assets, intangible assets and other long- -8,121,268.04 -22,936,727.98
term assets (mark “-” for gains)
Loss from retirement of fixed
625,552,186.98 875,143,928.70
assets (mark “-” for gains)
Loss from changes in fair value
1,254,312.12 11,086,791.11
(mark “-” for gains)
Financial expenses (mark “-” for
838,243,664.66 814,360,878.11
gains)
Loss on investment (mark “-” for
-1,051,106,361.78 -1,176,596,066.35
gains)
Decrease in deferred income tax
743,398.80 18,371,883.20
assets (mark “-” for increase)
Increase in deferred income tax
1,679,056.93 -816,771.93
liabilities (mark “-” for decrease)
Decrease in inventories (mark “-”
-2,400,013,909.92 -5,007,155,220.51
for increase)
Decrease in operating receivables
-2,647,332,950.25 -2,448,548,003.94
(mark “-” for increase)
Increase in operating payables
4,344,108,033.27 1,238,424,580.84
(mark “-” for decrease)
Others
Net cash flows from operating
-1,133,527,154.46 -4,596,606,685.74
activities
2. Significant investment and financing
activities involving no cash receipt or
expenditure:
Debts converted to capital
Convertible corporate bonds due in 1
year
Fixed assets under financing lease
3. Net change in cash and cash
equivalents:
Ending balance of cash 10,692,312,366.01 11,348,831,051.22
Minus: beginning balance of cash 14,292,784,234.11 8,509,218,898.56
378
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Plus: ending balance of cash
equivalents
Minus: beginning balance of cash
equivalents
Net increase in cash and cash
-3,600,471,868.10 2,839,612,152.66
equivalents
(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
9,000,000.00
combinations occurred in the current period
Wherein:
Qinzhou New Hope Liuhe Farming Technology Co. Ltd. 9,000,000.00
Minus: cash and cash equivalents held by subsidiaries at the
0.32
purchase date
Wherein:
Qinzhou New Hope Liuhe Farming Technology Co. Ltd. 0.32
Plus: cash or cash equivalents paid in the current period for
33,443,203.51
business combinations occurred in the previous periods
Wherein:
Sihui ShengYuan Agricultural Development Co., Ltd. 69,458.42
Yancheng Zhongtai Livestock Co., Ltd. 7,750,000.00
Huzhou Haihuang Biotechnology Co., Ltd. 15,479,059.09
Zhangjiajie Xinruixing Feed Co., Ltd. 7,894,686.00
Hangzhou Guanglv Breeding Co., Ltd. 2,250,000.00
Net cash paid for acquisition of subsidiaries 42,443,203.19
Other remarks:
(3) Composition of cash and cash equivalents
Unit: Yuan
Item Ending balance Beginning balance
I. Cash 10,692,312,366.01 14,292,784,234.11
Wherein: cash on hand 44,373,241.37 20,740,899.50
Bank deposits readily available
9,777,458,670.34 13,863,361,192.87
for payment
Other monetary capital readily
870,480,454.30 408,682,141.74
available for payment
III. Ending balance of cash and cash
10,692,312,366.01 14,292,784,234.11
equivalents
Wherein: cash and cash equivalents of
the parent company or subsidiaries inside 1,580,886,204.82 576,296,667.92
the group restricted from use
Other remarks:
379
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61. Notes to items in the statement of changes in equity
Specify the item name included in “Others” adjustment to the ending balance of the previous year and the amounts of adjustment,
etc.:
62. Assets with limited ownership or use right
Unit: Yuan
Item Ending book value Cause of restriction
Buy futures, bonding company margin,
Monetary capital 1,580,886,204.82
bill margin, rehabilitation bond, etc
Used as pledge for short-term
Notes receivable 10,380,000.00
borrowings
Used as collateral for long and short-
Fixed assets 231,065,047.02
term borrowings
Used as collateral for long and short-
Intangible assets 33,194,414.12
term borrowings
Used as collateral for short-term
Consumptive biological assets 18,499,549.23
borrowings
Long-term equity investments 865,194,100.00 Used as pledge for long-term borrowings
Total 2,739,219,315.19
Other remarks:
Note 1: the Company uses the notes receivable of Yanggu New Hope Liuhe Luxin Food Co., Ltd., hogs of Yangling Besun
Agricultural Industry Group Co., Ltd., house properties of Chongqing Guoxiong Feed Co., Ltd., land and house properties of Ne w
Hope Turkey Feed and Farming Food Import & Export and Industry Ltd., land and house properties of Wuhan Guoxiong Feed
Technology Co., Ltd., land and house properties of Wuwei Hope Feed Co., Ltd., land and house properties of Huai’an New Hope
Feed Co., Ltd., house properties of Huzhou Haihuang Biotechnology Co., Ltd., land and house properties of Anhui Baixin Feed
Co., Ltd., land and house properties of Hefei Huameng Biotechnology Co., Ltd., land and house properties of Guanghan Guoxiong
Feed Co., Ltd., land and house properties of Chengdu Century Investment Co., Ltd., land of Mianyang New Hope Liuhe Farming
Technology Co., Ltd., land and house properties of Taizhou New Hope Agriculture Co., Ltd., land and house properties of New
Hope Singapore Biotechnology Ltd., and land and house propert ies of Beijing Kinghey Food Co., Ltd. as pledges and collaterals
for long and short-term borrowings, for a total of pledge loans and mortgage loans equivalent to 390.03606 million Yuan.
Note 2: the Company’s subsidiary Beijing New Hope Liuhe Biotechonlogy Industry Group Co., Ltd. used its capital contributions
of 40 million Yuan to Fucheng Xinhao Farming Co., Ltd., 60 million Yuan to Gaomi Xinliu Farming Technology Co., Ltd., 168
million Yuan to Huanghua Xinhao Technology Co., Ltd., 168 million Yuan to Xiangzhou Xinhao Farming Co., Ltd., 91 million
Yuan to Raoyang Xinhao Farming Co., Ltd., 100.89 million Yuan to Baiyin New Hope Farming Technology Co., Ltd., 100
million Yuan to Kangping Xinwang Farming Co., Ltd and 60 million Yuan to Zhucheng Xinliu Farming Technology Co., Ltd as
pledges, and the Company used its capital contribution of 77.3041 million Yuan to Beijing Meihao Meideling Food Co., Ltd. as
pledges, to provide equity pledge guarantees for New Hope Liuhe Co., Ltd. to secure 421 million Yuan, 281.792 million Yuan,
398.05 million Yuan and 500.0005 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.
380
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63. Foreign-currency monetary items
(1) Foreign-currency monetary items
Unit: Yuan
Ending foreign-currency Ending converted RMB
Item Exchange rate for translation
balance balance
Monetary capital 721,604,526.35
Wherein: USD 10,424,225.77 6.7114 69,961,148.83
EUR 0.00
HKD 4,620,410.28 0.85519000 3,951,328.67
SGD 683,163.47 4.81700000 3,290,798.43
VND 532,943,038,468.50 0.00029044 154,787,976.09
PHP 171,556,926.94 0.12198097 20,926,680.36
BDT 493,235,039.93 0.07177592 35,402,398.77
LKR 4,141,235,626.64 0.01860212 77,035,762.08
IDR 289,697,464,865.15 0.00045117 130,702,805.22
MMK 20,526,088,356.46 0.00362778 74,464,132.82
EGP 192,867,168.78 0.35647929 68,753,151.39
ZAR 3,717,411.14 0.41330853 1,536,437.73
TRY 2,050,570.73 0.40240000 825,149.66
LAK 10,037,515,048.11 0.00044405 4,457,158.56
THB 1,654,443.20 0.19060326 315,342.27
NPR 376,737,957.41 0.05298013 19,959,625.96
INR 67,135,483.89 0.08489500 5,699,466.90
NGN 3,067,054,096.74 0.01615073 49,535,162.61
Accounts receivable 623,866,975.64
Wherein: USD 3,140,661.63 6.7114 21,078,236.46
EUR
HKD 22,067,635.69 0.85519000 18,872,021.37
VND 325,501,522,399.00 0.00029044 94,538,662.17
PHP 317,156,835.32 0.12198097 38,687,098.41
BDT 592,344,979.26 0.07177592 42,516,105.84
LKR 118,865,206.86 0.01860212 2,211,144.84
IDR 673,928,142,138.06 0.00045117 304,056,159.89
MMK 6,259,478,843.47 0.00362778 22,708,012.16
EGP 167,134,344.94 0.35647929 59,579,932.62
TRY 8,839,595.03 0.40240000 3,557,053.04
LAK 1,795,161,255.22 0.00044405 797,141.36
NPR 240,393,141.91 0.05298013 12,736,059.91
INR 29,793,834.38 0.08489500 2,529,347.57
Other receivables 17,059,532.46
Wherein: USD 229,938.70 6.7114 1,543,210.59
HKD 124,289.55 0.85519000 106,291.18
SGD 37,400.95 4.81700000 180,160.38
VND 11,997,237,746.00 0.00029044 3,484,477.73
PHP 8,953,813.84 0.12198097 1,092,194.90
BDT 15,907,962.76 0.07177592 1,141,808.66
LKR 426,381,078.88 0.01860212 7,931,592.00
IDR 331,174,226.69 0.00045117 149,415.88
MMK 234,632,343.88 0.00362778 851,194.52
381
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EGP 4,747.50 0.35647929 1,692.39
ZAR 873,020.08 0.41330853 360,826.65
TRY 186,967.78 0.40240000 75,235.83
NPR 160,625.25 0.05298013 8,509.95
NGN 8,230,079.78 0.01615073 132,921.80
Short-term borrowings 1,931,863,231.28
Wherein: USD 227,254,436.72 6.7114 1,525,195,426.60
VND 873,654,390,390.00 0.00029044 253,744,181.14
PHP 508,000,000.00 0.12198097 61,966,332.76
IDR 140,000,000,000.00 0.00045117 63,163,800.00
TRY 15,920,000.00 0.40240000 6,406,208.00
EGP 59,995,863.39 0.35647929 21,387,282.78
Accounts payable 894,082,472.40
Wherein: USD 19,613,367.36 6.7114 131,633,153.70
HKD 1,980,037.90 0.85519000 1,693,308.61
SGD 351,082.39 4.81700000 1,691,163.87
VND 450,362,294,872.00 0.00029044 130,803,224.92
PHP 802,466,179.05 0.12198097 97,885,602.91
BDT 1,118,429,196.20 0.07177592 80,276,284.51
LKR 109,468,870.88 0.01860212 2,036,353.07
IDR 712,899,148,917.32 0.00045117 321,638,709.02
MMK 6,240,310,571.87 0.00362778 22,638,473.89
EGP 199,003,804.92 0.35647929 70,940,735.09
ZAR 753,290.12 0.41330853 311,341.23
TRY 9,863,950.14 0.40240000 3,969,253.54
LAK 5,306,700,245.10 0.00044405 2,356,440.24
NPR 283,238,611.29 0.05298013 15,006,018.45
INR 102,259,658.70 0.08489500 8,681,333.73
NGN 156,096,697.52 0.01615073 2,521,075.62
Other payables 30,288,527.78
Wherein: USD 202,720.36 6.7114 1,360,537.42
HKD 1,349,151.42 0.85519000 1,153,780.80
SGD 318,972.80 4.81700000 1,536,491.98
VND 9,293,365,911.00 0.00029044 2,699,165.20
PHP 54,981,222.75 0.12198097 6,706,662.88
BDT 65,757,704.05 0.07177592 4,719,819.71
LKR 4,281,564.51 0.01860212 79,646.18
IDR 16,064,342,993.84 0.00045117 7,247,749.63
MMK 276,932,903.20 0.00362778 1,004,651.65
EGP 2,998,388.07 0.35647929 1,068,863.25
ZAR 301,585.67 0.41330853 124,647.93
TRY 1,246,791.63 0.40240000 501,708.95
LAK 365,646,597.85 0.00044405 162,365.37
NPR 4,661,154.71 0.05298013 246,948.58
INR 7,946,613.40 0.08489500 674,627.74
NGN 61,969,985.98 0.01615073 1,000,860.51
Long-term borrowings due in
1,926,800.00
1 year
Wherein: USD
SGD 400,000.00 4.81700000 1,926,800.00
Long-term borrowings 2,363,267,588.00
382
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Wherein: USD 350,000,000.00 6.7114 2,348,990,000.00
EUR 0.00
HKD 0.00
SGD 2,964,000.00 4.81700000 14,277,588.00
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
Principal
Accounting Basis for selection of
Entity Name place of
currency accounting currency
business
New Hope Hanoi LLC Vietnam VND Local principal currency
New Hope Ho Chi Minh City Co., Ltd. Vietnam VND Local principal currency
New Hope Binh Dinh Co., Ltd. Vietnam VND Local principal currency
New Hope Dong Thap Aquatic Feed Co., Ltd. Vietnam VND Local principal currency
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.,
Vietnam VND Local principal currency
Ltd.
Sichuan New Hope Agriculture (Cambodia) Co., Ltd. Cambodia USD Local principal currency
New Hope Pampanga Agriculture Inc. Phillipines PHP Local principal currency
New Hope Central Luzon Agriculture Inc. Phillipines PHP Local principal currency
New Hope Tarlac Agriculture Inc. Phillipines PHP Local principal currency
New Hope Bulacan Agriculture Inc. Phillipines PHP Local principal currency
New Hope Isabela Agriculture Inc. Phillipines PHP Local principal currency
New Hope Philippines Animal Healthcarae Services Inc. Phillipines PHP Local principal currency
New Hope Davao Agriculture Ltd. Phillipines PHP Local principal currency
New Hope Philippines Livestock Inc. Phillipines PHP Local principal currency
New Hope Bangladesh Ltd. Bangladesh BDT Local principal currency
New Hope Agrotech Bangladesh Ltd. Bangladesh BDT Local principal currency
New Hope Farms Bangladesh Ltd. Bangladesh BDT Local principal currency
Xinhe International Trade Co., Ltd. Bangladesh BDT Local principal currency
New Hope Animal Nutrition Bangladesh Ltd. Bangladesh BDT 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
383
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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. Myammar MMK Local principal currency
Myanmar New Hope Agro-Technology Co., Ltd. Myammar MMK Local principal currency
Xinhe Myanmar Agro-technology Co., Ltd. Myammar MMK Local principal currency
New Hope Mandalay Co., Ltd. Myammar MMK Local principal currency
New Hope Egypt Ltd. Egypt EGP Local principal currency
New Hope Agriculture (Egypt) 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 ZAR Local principal currency
New Hope Turkey Feed and Farming Food Import & Export
Turkey TRY Local principal currency
and Industry Ltd.
New Hope Laos Co., Ltd. Laos LAK Local principal currency
New Hope Agro Business Nepal Pvt. Ltd. Nepal NPR Local principal currency
New Hope Kolkata Animal Feed Private Ltd. India INR Local principal currency
New Hope Agro-technology Nigeria Ltd. Nigeria NGN Local principal currency
Note: as detailed in “Note V. (9) Foreign currency transactions and translation of foreign currency statements”, the
“Undistributed profits” in the owner’s equity is calculated and presented based on the items of net profits and profit distribution
after translation; other items of owner’s equity other than undistributed profits are converted at the spot exchange rate when
occurring. The difference between the sum of assets and liabilities after translation and the sum of items of owner’s equity is
recognized as other comprehensive income by virtue of foreign currency statement translation difference.
All overseas operating entities of the Company adopt the currencies in primary economic environments in which they
operate as accounting currencies, and none of overseas operating entities changed their accounting currencies in the current period.
64. Hedging items
Disclose the qualitative and quantitative information of hedging items, relevant hedging instruments and hedged risks according to
hedging categories:
65. Government subsidies
(1) Basic information of government subsidies
Unit: Yuan
Amount included in current
Category Amount Item presented
profit or loss.
384
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Headquarters - Analysis and
early warning and forecast of
typical livestock and poultry
264,000.00 Deferred income
epidemic
diseases/2021ZD0113803-04
(special fund)
Headquarters - Key
technologies and product
creation for quality and
efficiency improvement of 800,000.00 Deferred income
non-grain protein feed
(2021YFD1301004)(special
fund)
Headquarters - Application
demonstration of intelligent
veterinary cloud service for
pig disease diagnosis and 440,000.00 Deferred income
active prevention and
control/2021ZD0113805-3
(special fund)
Headquarters - Knowledge
map construction and
multimedia man-machine
330,000.00 Deferred income
dialogue of typical pig
diseases (2021Zd0113802-
3)(special fund)
Headquarters - “Excellent
Plan” project of Tech City 450,000.00 Deferred income
Talent Program (special fund)
Headquarters - Unmanned
disinfection technology for
scene-aware and intelligent
260,000.00 Deferred income
planning hog
house/2021ZD0113804-04
(special fund)
Headquarters - Development
of precise nutrition and non-
990,000.00 Deferred income
grain nutrition sources for
Sichuan pig (special fund)
Headquarters - Autonomous
system of efficient and
precise cutting of livestock 150,000.00 Deferred income
and poultry meat products by
robots (direct funding)
Mianyang New Hope -
Economic work industrial
10,000.00 Deferred income
development evaluation
award
Porridge Jiahe - 2021
Enterprise intelligent
1,230,000.00 Deferred income 25,625.00
transformation and upgrading
project award fund
Shandong Kinghey -
Agricultural cold chain
1,400,000.00 Deferred income
logistics and warehouse
construction project
Rongchang Pig Farm - Seed 400,000.00 Deferred income 21,621.62
385
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introduction subsidy
Laiyang Xinhao - Road
300,000.00 Deferred income 4,166.65
construction subsidy
Luocheng Xinhao -
Quarantine center and
120,000.00 Deferred income
secondary decontamination
center housing subsidy
Laizhou Xinhai - Cultivated
40,923.60 Deferred income 3,410.30
land conservation subsidy
Laizhou Xinhai - Agricultural
126,380.00 Deferred income 10,531.67
machinery subsidy
Chenzhou Xinhao - Yizhang
agricultural machinery 12,930.00 Deferred income
subsidy
Gansu Xinliu - Pig breeding
700,000.00 Deferred income 50,000.00
integration project subsidy
Wuhe Feed - Fixed assets
2,276,000.00 Deferred income 19,411.52
subsidy
Juye Xinhao - Modern
agricultural industrial park 960,000.00 Deferred income
project fund
Zhangwu Xinwang -
Government rebate of 13,120,000.00 Deferred income 3,224,888.88
cultivated land occupancy tax
Zhangwu Xinwang - Six taxes
and two fees reduction and 7,123,900.00 Deferred income 3,561,949.98
refund
Yanting Xinhao - Government
subsidy for 2021 major
45,000.00 Deferred income 7,500.00
technology collaborative
promotion project
RuYuan Xinhao - Manure
3,500,000.00 Deferred income
remediation project subsidy
Hezhou Xinhao - Pig support
1,000,000.00 Deferred income 4,444.44
subsidy
Hezhou Xinhao - Farm
1,000,000.00 Deferred income 42,753.92
construction subsidy
Zhaoqing Xinhao -
Government subsidy for 2,700,000.00 Deferred income 58,050.82
manure resource utilization
Xindongwan Xinliu - Seed
150,000.00 Deferred income 12,500.01
introduction subsidy
Yancheng Zhongtai - Pig farm
5,000,000.00 Deferred income 104,166.65
construction subsidy
Beijing Xinliu - Machinery
21,738,550.00 Deferred income
purchase subsidy
Beijing Xinliu - Pig
optimization industry 1,000,000.00 Deferred income 1,218,695.68
development project subsidy
Changxing Animal
Husbandry - Pig production
3,500,000.00 Deferred income 237,335.36
increase and supply guarantee
subsidy
Zhanjiang Guoxiong -
Equipment technical
976,400.00 Deferred income 27,897.15
transformation project
subsidy
386
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Maoming Liuhe - 30,000t/a
Aquatic extruded feed
730,400.00 Deferred income 21,273.78
technical transformation
project award
Hope Food - 2021 Chengdu
green food industrial 100,000.00 Deferred income
ecosystem talent program
Liuhe Group - High
reproductive rate white
feather meat duck breeding 500,000.00 Deferred income 252.00
technology R&D and
application (special fund)
Liuhe Group - Sino-european
food safety process control
system based on digital 375,120.00 Deferred income 48,455.14
information technology
(special fund)
Liuhe Group - New duck
breeds cultivation and
4,989,600.00 Deferred income 821,510.49
industrialization
demonstration (special fund)
Weifang New Hope - Yuandu
400,000.00 Deferred income 66,750.58
talent project
Sichuan Trade - Sichuan pig
refined intelligent breeding
and environmental precise
331,250.00 Deferred income
control special fund
2021ZDZX0011 (special
fund)
Weifang Liuhe - Research and
industrialization promotion of
key technologies of
249,000.00 Deferred income 557,740.00
environment-friendly
antibiotic-free feed for pig
and poultry
Lijin Breeding Ducks -
Subsidy for standard revision 10,000.00 Deferred income
fee
Amortization of deferred
15,083,380.24 Other income 15,083,380.24
income - assets
Amortization of deferred
3,478,043.66 Other income 3,478,043.66
income - income
Amortization of deferred
679,625.89 Financial expenses 679,625.89
income - income
Rebate of handling fee on
4,444,326.67 Other income 4,444,326.67
withheld personal income tax
Government subsidy related
69,436,029.68 Other income 69,436,029.68
to daily business activities
Total 172,920,859.74 103,272,337.78
(2) Return of government subsidies
□applicable not applicable
Other remarks:
387
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VIII. Changes in the scope of consolidation
1. Business combination not under common control
(1) Current business combinations not under common control
Unit: Yuan
Revenue of Net profits
the of the
Basis for acquired acquired
Name of
Time of Cost of Ratio of Way of determinati party from party from
the Purchase
equity equity equities equity on of the the
acquired date
acquisition acquisition acquired acquisition purchase purchase purchase
party
date date to end date to end
of the of the
period period
Qinzhou
New Hope
Liuhe Jan. 07, 10,500,000. Jan. 07, Transfer of
100.00% Cash 0.00 -343.49
Farming 2022 00 2022 control
Technology
Co. Ltd.
Other remarks:
(2) Combination cost and goodwill
Unit: Yuan
Combination cost Qinzhou New Hope Liuhe Farming Technology Co. Ltd.
--Cash 10,500,000.00
--Fair value of non-cash assets
--Fair value of debts issued or assumed
--Fair value of equity securities issued
--Fair value of contingent consideration
--Fair value of shares held before purchase date as at the
purchase date
--Others
Total combination cost 10,500,000.00
Minus: share of fair value of identifiable net assets acquired 10,500,000.00
Amount of goodwill/combination cost lower than the share of
0.00
fair value of identifiable net assets acquired
Remarks on method for determination of fair value of combination cost, contingent consideration and its changes:
Main reasons for formation of large-sum goodwill:
Other remarks:
388
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(3) Identifiable assets and liabilities of the acquired party at the purchase date
Unit: Yuan
Qinzhou New Hope Liuhe Farming Technology Co. Ltd.
Fair value at the purchase date Book value at the purchase date
Assets: 28,208,989.94 28,208,989.94
Monetary capital 0.32 0.32
Receivables
Inventories
Fixed assets
Intangible assets 5,403,708.74 5,403,708.74
Prepayments 3,090,715.31 3,090,715.31
Other receivables 2,000.00 2,000.00
Other current assets 648,070.20 648,070.20
Construction in progress 19,064,495.37 19,064,495.37
Liabilities: 17,708,989.94 17,708,989.94
Borrowings
Payables 3,965,500.00 3,965,500.00
Deferred income tax liabilities 408,989.94 408,989.94
Payroll payable 237,339.77 237,339.77
Taxes and dues payable 6,519.10 6,519.10
Other payables 13,090,641.13 13,090,641.13
Net assets 10,500,000.00 10,500,000.00
Minus: minority interests
Net assets acquired 10,500,000.00 10,500,000.00
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 the 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
2. Changes in the scope of consolidation for other reasons
Remarks on changes in the scope of consolidation caused by other reasons (for example, establishment of new subsidiaries,
liquidation of subsidiaries etc.) and related information:
(1) New subsidiaries established in the current period
389
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Current net
Name of subsidiary Ending net profits
profits
Chaoyang New Hope Liuhe Farming Technology Co. Ltd. 2,000,000.00 -
Guiyang New Hope Liuhe Agriculture Technology Co. Ltd. 499,877,500.00 -122,500.00
(2) Subsidiaries deregistered in the current period
Net profits
from
Net assets at
beginning of
the
Name of subsidiary the period to
deregistration
the
date
deregistration
date
Xiaogan Xinyue Farming Technology Co. Ltd. - -1,456,796.26
New Hope Poland Limited -11,273,247.71 -
Leizou New Hope Farming Co., Ltd. - -
Guiyang Xinhao Farming Co., Ltd. - -
Dazhu County Xinliu Farming Technology Co., Ltd. - -
Jianshi New Hope Farming Co., Ltd. - -
Rong County Xinyue Farming Technology Co., Ltd. - -
Bazhong New Hope Pig Breeding Technology Co., Ltd. 465,797.61 -59.93
Liu’an Tianye Xinhua Food Co., Ltd. - -5,675,668.04
Longkou Liuhe Breeding Co., Ltd. 7,088,993.90 -270.31
Shangyi New Hope Liuhe Farming Technology Co., Ltd. - -
Xiamen Xiashang New Hope Agriculture Development Co., Ltd. - -
Chengdu KangYuan Shangpin Trading Co., Ltd. 6,492.37 -1,382.39
Weifang Liuhe Dehui Poultry Development Co., Ltd. -10,978,383.09 -278,532.52
Longquan Xinyue Farming Technology Co., Ltd. - -
IX. Equities in other entities
1. Equities in subsidiaries
(1) Composition of the business group
Name of Principal place Place of Nature of Shareholding ratio Way of
subsidiary of business registration business Direct Indirect acquisition
Business
Shandong New Feeds,
Qingdao, Qingdao, combination
Hope Liuhe veterinary 78.70%
Shandong Shandong under common
Group Co., Ltd. drugs
control
New Hope Qingdao, Qingdao, Production and Business
24.00% 76.00%
Liuhe Feed Co., Shandong Shandong sale of feeds combination
390
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Ltd. under common
control
Sichuan New Business
Hope Liuhe Chengdu, Chengdu, Feed sale, combination
100.00%
Farming Co., Sichuan Sichuan investment under common
Ltd control
New Hope
Trade, Invested and
Singapore Pte. Singapore Singapore 100.00%
investment established
Ltd.
New Hope
International Trade, Invested and
Singapore Singapore 100.00%
Holdings (Pte.) investment established
Ltd.
Beijing New
Hope Liuhe Livestock
Invested and
Biotechnology Lhasa, Tibet Lhasa, Tibet breeding, 100.00%
established
Industry Group investment
Co., Ltd
New Hope
Liuhu Food Chengdu, Investment, Invested and
Lhasa, Tibet 100.00%
Holdings Co., Sichuan R&D established
Ltd.
Business
Yangling Besun
Yangling Yangling Livestock combination
Agricultural
District, District, breeding, 50.79% 15.48% not under
Industry Group
Shaanxi Shaanxi slaughtering common
Co., Ltd.
control
Guanghan
Guanghan, Guanghan, Production and Invested and
Guoxiong Feed 100.00%
Sichuan Sichuan sale of feeds established
Co., Ltd.
Emeishan New
Leshan, Leshan, Production and Invested and
Hope Liuhe 100.00%
Sichuan Sichuan sale of feeds established
Feed Co., Ltd.
GuangYuan
New Hope
GuangYuan, GuangYuan, Livestock Invested and
Liuhe Farming 100.00%
Sichuan Sichuan breeding established
Technology
Co., Ltd.
Mianyang New
Hope Liuhe
Mianyang, Mianyang, Production and Invested and
Farming 100.00%
Sichuan Sichuan sale of feeds established
Technology
Co., Ltd.
Chongqing
Tongliang New
Hope Liuhe Tongling, Tongling, Production and Invested and
100.00%
Farming Chongqing Chongqing sale of feeds established
Technology
Co., Ltd.
Wulong New
Wulong, Wulong, Production and Invested and
Hope Liuhe 100.00%
Chongqing Chongqing sale of feeds established
Feed Co., Ltd.
Kunming New
Hope
Kunming, Kunming, Production and Invested and
Agricultural 100.00%
Yunan Yunan sale of feeds established
Technology
Co., Ltd.
391
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Business
Qujing
Production and combination
Guoxiong Feed Qujing, Yunnan Qujing, Yunnan 90.00% 10.00%
sale of feeds under common
Co., Ltd.
control
Mangshi New
Dehong Dehong
Hope Farming Production and Invested and
Prefecture, Prefecture, 100.00%
Technology sale of feeds established
Yunnan Yunnan
Co., Ltd.
Kunming New
Hope Animal Kunming, Kunming, Production and Invested and
100.00%
Nutritious Food Yunan Yunan sale of feeds established
Co., Ltd.
Business
Zunyi Jiahao Production and combination
Zunyi, Guizhou Zunyi, Guizhou 100.00%
Feed Co., Ltd. sale of feeds under common
control
Zunyi New
Hope Liuhe
Production and Invested and
Agricultural Zunyi, Guizhou Zunyi, Guizhou 100.00%
sale of feeds established
Technology
Co., Ltd.
Hainan New
Hope Livestock Invested and
Haikou, Hainan Haikou, Hainan 100.00%
Agriculture breeding established
Co., Ltd.
Taizhou New
Hope Taizhou, Taizhou, Production and Invested and
100.00%
Agriculture Jiangshu Jiangshu sale of feeds established
Co., Ltd.
Lhasa New
Production and Invested and
Hope Industrial Lhasa, Tibet Lhasa, Tibet 55.00%
sale of feeds established
Co., Ltd.
Beijing New
Hope Farming Production and Invested and
Beijing Beijing 75.00% 25.00%
Technology sale of feeds established
Co., Ltd.
Hebei New
Production and Invested and
Hope Feed Co., Xinji, Hebei Xinji, Hebei 100.00%
sale of feeds established
Ltd.
Baoji New
Production and Invested and
Hope Farming Baoji, Shaanxi Baoji, Shaanxi 100.00%
sale of feeds established
Co., Ltd.
SanYuan New
Xianyang, Xianyang, Production and Invested and
Hope Feed Co., 100.00%
Shaanxi Shaanxi sale of feeds established
Ltd.
Wuzhou New
Wuzhou, Wuzhou, Production and Invested and
Hope Liuhe 100.00%
Guangxi Guangxi sale of feeds established
Feed Co., Ltd.
Guangxi New
Hope Liuhe Nanning, Nanning, Livestock Invested and
100.00%
Breeding Co., Guangxi Guangxi breeding established
Ltd.
Yongzhou New
Yongzhou, Yongzhou, Production and Invested and
Hope Liuhe 100.00%
Hunan Hunan sale of feeds established
Feed Co., Ltd.
Huaihua New Huaihua, Huaihua, Production and Invested and
100.00%
Hope Liuhe Hunan Hunan sale of feeds established
392
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Feed Co., Ltd.
Huanggang
New Hope
Huanggang, Huanggang, Production and Invested and
Feed 100.00%
Hubei Hubei sale of feeds established
Technology
Co., Ltd.
Yingtan New
Yingtan, Yingtan, Production and Invested and
Hope Feed Co., 100.00%
Jiangxi Jiangxi sale of feeds established
Ltd.
Ningxia New
Hope Ruminant
Qingtongxia, Qingtongxia, Production and Invested and
Animal 100.00%
Ningxia Ningxia sale of feeds established
Nutritious Food
Co., Ltd.
Xiangyang
New Hope Xiangyang, Xiangyang, Production and Invested and
100.00%
Liuhe Feed Co., Hubei Hubei sale of feeds established
Ltd.
Guangzhou
Guangzhou, Guangzhou, Production and Invested and
Liuhe Feed Co., 61.00%
Guangdong Guangdong sale of feeds established
Ltd.
Sichuan Xinle Production and
Leshan, Leshan, Invested and
Plastics Co., sale of woven 100.00%
Sichuan Sichuan established
Ltd. bags
Jiangsu
Tiancheng Production and
Invested and
Healthcare Hai’an Jiangsu Hai’an Jiangsu sale of 51.00%
established
Products Co., additives
Ltd.
Hebei New
Livestock Invested and
Hope Farming Chengde, Hebei Chengde, Hebei 100.00%
breeding established
Co., Ltd.
Yunnan New
Hope Liuhe Kunming, Kunming, Livestock Invested and
100.00%
Breeding Co., Yunan Yunan breeding established
Ltd.
Tibet Linzhi
New Hope Livestock Invested and
Linzhi, Tibet Linzhi, Tibet 60.00%
Liuhe Breeding breeding established
Co., Ltd.
Shandong Business
Qinwang combination
Qingdao, Qingdao, Consulting,
Breeding 80.00% not under
Shandong Shandong services
Consulting Co., common
Ltd. control
Qingdao
Feidake Food Qingdao, Qingdao, Invested and
Investment 70.00%
Technology Shandong Shandong established
Co., Ltd.
Qingdao
Xinhang Engineering
Qingdao, Qingdao, Invested and
Engineering project 100.00%
Shandong Shandong established
Management management
Co., Ltd.
Golden Oak
Invested and
Investment Tianjin Tianjin Trade 100.00%
established
Holdings
393
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(Tianjin) Co.,
Ltd.
Tianjin
Dingcheng
Invested and
Zhizi Tianjin Tianjin Investment 100.00%
established
Investment Co.,
Ltd.
New Hope
Liuhe Invested and
Shanghai Lhasa, Tibet Investment 75.00%
Investment Co., established
Ltd.
Santai New
Hope Farming
Mianyang, Mianyang, Invested and
Financing Guarantee 100.00%
Sichuan Sichuan established
Guarantee Co.,
Ltd.
Business
Chengdu
Production and combination
Fenglan Chengdu, Chengdu,
sale of 75.00% not under
Technology Sichuan Sichuan
additives common
Co., Ltd.
control
Wuhan Liuhe Processing and Invested and
Xiaogan, Hubei Xiaogan, Hubei 55.00%
Food Co., Ltd. sale of poultry established
Sichuan New
Hope Liuhe
Chengdu, Chengdu, Testing, Invested and
Technological 100.00%
Sichuan Sichuan consulting established
Innovation Co.,
Ltd.
Sichuan New
Hope Animal Purchase and
Chengdu, Chengdu, Invested and
Nutrition sale of feed 100.00%
Sichuan Sichuan established
Technology ingredients
Co., Ltd.
Qingdao
Manufacture
Xinmu Zhihe Qingdao, Qingdao, Invested and
and sale of 20.00% 80.00%
Technology Shandong Shandong established
machinery
Co., Ltd.
Xintai New
Xintai, Xintai, Production and Invested and
Hope Feed Co., 24.00% 76.00%
Shandong Shandong sale of feeds established
Ltd.
Guangdong
Jiahao
Guangzhou, Guangzhou, Production and Invested and
Agricultural 100.00%
Guangdong Guangdong sale of feeds established
Products Co.,
Ltd.
Tianjin
Yunxiang
Enterprise Enterprise
Tianjin Free Tianjin Free Invested and
Management management 19.99% 0.03%
Trade Zone Trade Zone established
Consulting consulting
Partnership
(LP)
Remarks on shareholding ratio in subsidiary different from the ratio of voting power:
Basis of control of invested entity while holding half or less of voting power and of non-control of invested entity while holding
half or more of voting power:
394
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Other remarks:
Apart from the aforesaid subsidiaries, the Company has 717 subsidiaries indirectly controlled by it, which are mainly distributed in
30 Chinese provinces and municipalities, Southeast Asian countries and South Africa, dealing with feed production, breeding a nd
slaughtering, etc.
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:
(2) Major non-wholly owned subsidiaries
Unit: Yuan
Current dividends
Current profit and loss
Shareholding ratio of declared and Ending balance of
Name of subsidiary attributable to minority
minority shareholders distributed to minority miniority interests
shareholders
shareholders
New Hope Liuhe
25.00% 257,261,215.54 5,446,806,979.68
Investment Co., Ltd.
Shandong New Hope
21.30% -81,710,838.40 156,108,333.34 1,263,976,403.49
Liuhe 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 major non-wholly owned subsidiaries
Unit: Yuan
Ending balance Beginning balance
Name
of Curren Non- Curren Non-
Non- Total Non- Total
subsidi Curren Total t current Curren Total t current
current liabiliti current liabiliti
ary t assets assets liabiliti liabiliti t assets assets liabiliti liabiliti
assets es assets es
es es es es
New
Hope
Liuhe 391,59 21,395 21,787 399,97 20,802 21,202
Invest 1,906. ,636,0 ,227,9 0.00 0.00 0.00 1,503. ,605,8 ,577,3
ment 30 12.44 18.74 31 02.27 05.58
Co.,
Ltd.
Shand
19,174 7,529, 26,703 16,984 3,063, 20,048 14,912 7,341, 22,253 11,715 3,297, 15,012
ong
,078,5 864,76 ,943,3 ,092,5 922,91 ,015,4 ,848,2 035,15 ,883,3 ,384,9 591,36 ,976,3
New
81.38 2.15 43.53 76.20 3.40 89.60 00.66 1.00 51.66 46.70 9.65 16.35
Hope
395
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Liuhe
Group
Co.,
Ltd.
Unit: Yuan
Current amount Amount of the previous period
Name of Total Cash flows Total Cash flows
subsidiary Business comprehen from Business comprehen from
Net profits Net profits
revenue sive operating revenue sive operating
income activities income activities
New Hope
Liuhe 1,029,044,8 982,650,61 1,108,947,1 1,135,380,6
0.00 186,620.16 -4,850.21
Investment 62.16 3.16 53.79 00.79
Co., Ltd.
Shandong
New Hope - - -
31,645,562, 30,249,497. 31,259,636, 260,432,51 260,271,95
Liuhe 433,649,81 432,865,26 1,453,577,3
269.78 83 215.16 5.07 3.30
Group Co., 9.90 4.72 81.18
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:
2. Equities in joint ventures or affiliates
(1) Important joint ventures or affiliates
Shareholding ratio Accounting
treatment
Name of joint
Principal place Place of Nature of method for
venture or
of business registration business Direct Indirect investments in
associate
joint ventures
or affiliates
China
Beijing Beijing Finance 4.18% Equity method
Minsheng Bank
New Hope
Chengdu, Chengdu,
Finance Co., Finance 34.00% 6.00% Equity method
Sichuan Sichuan
Ltd.
Remarks on shareholding ratio in joint ventures or affiliates different from voting power:
396
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
None
Basis for holding less than 20% voting power but with significant influence or holding 20% or more voting power but without
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 the 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 influence over China Minsheng Bank.
(2) Key financial information of important affiliates
Unit: Yuan
Ending balance/current amount Beginning balance/amount of the previous period
New Hope Finance New Hope Finance
China Minsheng Bank China Minsheng Bank
Co., Ltd. Co., Ltd.
Current assets 709,082,000,000.00 6,452,145,194.68 654,628,000,000.00 13,693,698,322.09
Non-current assets 6,611,498,000,000.00 9,675,318,437.59 6,298,158,000,000.00 7,250,100,779.37
Total assets 7,320,580,000,000.00 16,127,463,632.27 6,952,786,000,000.00 20,943,799,101.46
Current liabilities 5,914,497,000,000.00 12,823,374,326.18 5,616,371,000,000.00 19,001,052,629.18
Non-current liabilities 803,372,000,000.00 7,225,324.84 749,876,000,000.00 6,703,803.76
Total liabilities 6,717,869,000,000.00 12,830,599,651.02 6,366,247,000,000.00 19,007,756,432.94
Minority interests 107,513,000,000.00 102,223,000,000.00
Shareholder equity
attributable to the 495,198,000,000.00 3,296,863,981.25 484,316,000,000.00 1,936,042,668.52
parent company
Share of net asses
calculated at 20,678,973,282.00 1,318,745,592.49 20,224,551,844.00 774,417,067.40
shareholding ratio
Adjustments
--Goodwill
--Profits unrealized
through internal
transactions
--Others
Book value of equity
investments in 21,380,608,194.17 1,318,745,592.49 20,787,577,984.00 774,417,067.40
affiliates
Fair value of equity
investments in
6,801,377,786.64 7,130,340,898.20
affiliates for which
there are public offers
Business revenue 74,199,000,000.00 279,188,968.01 87,775,000,000.00 264,867,854.65
Net profits 24,884,000,000.00 60,794,542.99 26,737,000,000.00 81,577,604.92
Net profit from
discontinued
operations
397
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Other comprehensive
-938,000,000.00 26,769.74 659,000,000.00
income
Total comprehensive
23,946,000,000.00 60,821,312.73 27,396,000,000.00 81,577,604.92
income
Dividends received
from affiliates in this 389,433,782.83 280,000,000.00 389,433,728.11 0.00
year
Other remarks
(3) Summary financial information of unimportant joint ventures and affiliates
Unit: Yuan
Beginning balance/amount of the
Ending balance/current amount
previous period
Joint ventures:
Total book value of investments 1,785,984,051.30 1,842,817,615.90
Total amount of each of the following
items calculated by shareholding ratio
--Net profits -49,892,217.37 -11,528,067.02
--Other comprehensive income 0.00 0.00
--Total comprehensive income -49,892,217.37 -11,528,067.02
Affiliates:
Total book value of investments 404,542,152.07 434,934,838.07
Total amount of each of the following
items calculated by shareholding ratio
--Net profits 13,499,003.10 46,371,237.39
--Other comprehensive income 0.00 0.00
--Total comprehensive income 13,499,003.10 46,371,237.39
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
Accumulation of Losses unrecognized in this
Name of joint venture or Accumulated unrecognized
unrecognized prior period (or net profits shared
associate losses at the end of this period
accumulated losses in this period)
Nanjing Heda Food Co., Ltd. -1,636,440.11 -1,636,440.11
Taishan Jiaxin Logistics Co., -1,349,939.37 -387,867.12 -1,737,806.49
398
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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 instruments
The main financial instruments of the Company include monetary capital, accounts receivable, notes receivable, other
receivables, other current assets, held-for-trading financial assets, accounts payable, notes payable, other payables, lease liabilities,
short-term borrowings, held-for-trading financial liabilities, non-current liabilities due in 1 year, other current liabilities, long-term
borrowings, and bonds payable. Details of all 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 Company. The credit risk to the Company mainly originates from monetary capital and accounts receivable,
etc.
To reduce the credit risk, the Company controls credit line, performs credit approval and executes other monitoring
procedures to ensure necessary measures are taken to recover overdue claims. In addition, the Company sufficiently provides for
expected credit loss based on the collection of accounts receivable at each balance sheet date. Therefore, the Company’s
management believes the credit risk to the Company has been significantly reduced.
Monetary capital other than cash of the Company is mainly deposited with state-owned banks or other medium and large-
sized listed banks or other financial institutions with good credit standing, so the Company believes there is no material credit risk
to it, which is expected to cause losses to the Company due to default of the counterparty.
II. Market risk
The market risk of financial instruments refer to the risk that the fair value or future cash flow of financial instruments
might fluctuate as a result of changing market prices, including the exchange rate risk, interest rate risk etc.
1. Interest rate risk
Interest rate risk refers to the risk that fair value of financial instruments or future cash flow might fluctuate due to changing
market interest rates. Fixed-rate and floating-rate interest-bearing financial instruments pose fair value interest rate risk and cash
flow interest rate risk to the Company respectively. The Company determines the ratios of fixed-rate and floating-rate instruments
based on market environment and maintains an appropriate portfolio of fixed-rate and floating-rate instruments through regular
review and monitoring. The Company mainly faces cash flow interest rate risk resulting from floating-rate financial liabilities.
(1) The floating-rate financial liabilities held by the Company as of June 30 were as follows:
2022 2021
Item
Effective interest rate Amount Effective interest rate Amount
399
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Financial liabilities
Wherein: short-term borrowings 1.65%-32% 19,831,059,413.76 0.80%-29.75% 15,159,358,595.63
Long-term borrowings (including
1.25%-4.66% 39,550,418,641.99 1.37%-4.75% 36,930,396,337.52
those due in 1 year)
Total 59,381,478,055.75 52,089,754,933.15
(2) Sensitivity analysis
As of June 30, 2022, with other variables held constant, a 25bp increase in interest rate will result in the Company’s net
profits and ownership interest decreased by 109,823,560.07 Yuan. (In 2021: a decrease of 115,377,500.99 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 assumptions and method.
2. Foreign exchange risk
The Company invests and operates in several Asian and African 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 revenue and profits
of the Company. For monetary capital, 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. For presentation
purpose, the total amount of risk exposure is presented in RMB converted from foreign currencies at the spot exchange rate at the
balance sheet date. The foreign currency statement translation difference is not included.
Ending amount Beginning amount
Item Balance in foreign Balance in RMB Balance in foreign Balance in RMB
currency converted currency converted
Monetary capital
Wherein: USD 6,232,202.76 41,826,805.60 6,103,828.51 38,916,179.43
SGD 434,676.30 2,093,835.74 272,324.16 1,284,798.15
THB 1,654,443.20 315,342.27 27,498,154.70 5,256,969.24
IDR 3,426,709,171.66 1,546,028.38 3,250,914,954.57 1,452,573.82
HKD 4,620,410.28 3,951,328.67
Accounts receivable
Wherein: USD 1,325,521.05 8,896,101.97 87,555.26 558,226.07
HKD 22,067,635.69 18,872,021.37
Other receivables
Wherein: USD 220,800.00 1,481,877.12 211,162.55 1,346,309.07
SGD 8,504.26 40,965.02 1,857.29 8,762.51
HKD 124,289.55 106,291.18
Accounts payable
Wherein: USD 2,570,785.28 17,253,568.33 3,064,046.15 19,535,439.04
SGD 349,093.39 1,681,582.86 655,095.56 3,090,675.34
HKD 1,980,037.90 1,693,308.61
Other payables
Wherein: USD 62,220.42 417,586.13 62,108.56 395,985.55
SGD 24,310.60 117,104.16 25,143.60 118,624.99
HKD 1,349,151.42 1,153,780.80
400
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
Net amount of foreign-
curency items in balance
sheet
Wherein: USD 5,145,518.11 34,533,630.23 3,276,391.61 20,889,289.98
SGD 69,776.57 336,113.74 -406,057.71 -1,915,739.67
THB 1,654,443.20 315,342.27 27,498,154.70 5,256,969.24
IDR 3,426,709,171.66 1,546,028.38 3,250,914,954.57 1,452,573.82
HKD 23,483,146.20 20,082,551.81
2) The analysis of RMB/foreign currency exchange rate applicable to the Company is as follows:
Average exchange rate in the reporting period Central parity rate at the reporting date
Item During the period from During the period from
January 1, 2022 to June 30, January 1, 2021 to June 30, June 30, 2022 June 30, 2021
2022 2021
USD 6.4778 6.4736 6.7114 6.4601
SGD 4.7452 4.8623 4.817 4.8027
THB 0.19238829 0.21003338 0.19060326 0.20147480
IDR 0.00044776 0.00045167 0.00045117 0.00044558
HKD 0.82783250 0.85519000
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, THB and IDR 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 in RMB converted at the spot exchange rate at the balance sheet date:
Item Ownership interest Net profits
June 30, 2022
USD -1,295,011.13 -1,295,011.13
SGD -12,604.27 -12,604.27
THB -11,825.34 -11,825.33
IDR -57,976.06 -57,976.06
HKD -753,095.69 -753,095.69
Total -2,130,512.48 -2,130,512.48
December 31, 2021
USD -783,348.37 -783,348.37
SGD 71,840.24 71,840.24
THB -197,136.35 -197,136.35
IDR -54,471.52 -54,471.52
Total -963,116.00 -963,116.00
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, THB and IDR 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.
The aforesaid sensitivity analysis is derived from re-measurement of financial instruments held by the Company and facing
exchange rate risk at the balance sheet date with the changed exchange rate, assuming the exchange rate changes at the balance
sheet date. The aforesaid analysis doesn’t include foreign currency statement translation difference. The analysis of the pre vious
year was based on the same assumptions and method.
401
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3. Liquidity risk
Liquidity risk refers to the 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 finance department of the Company. The finance department
ensures the Company has 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 liabilit ies of the Company at the
balance sheet date by the undiscounted contractual cash flows (including interest calculated at contract interest rate (or at the
prevailing interest rate on June 30 in case of floating interest rate)) are as follows:
Balance sheet
Undiscounted contractual cash flows at the end of period
date
Item
Due in 1 year or
1-2 years 2-5 years Over 5 years Total Book value
on demand
Short-
term 20,043,851,119. 20,043,851,119.4 19,831,059,413.
borrowing 47 7 76
s
Notes 4,320,859,010.1 4,320,859,010.1
4,320,859,010.16
payable 6 6
Accounts 7,381,509,444.9 7,381,509,444.9
7,381,509,444.97
payable 7 7
Other
payables
(excludin
g interest 3,480,880,257.2 3,480,880,257.2
3,480,880,257.24
payable 4 4
and
dividends
payable)
Long-
term
borrowing
s
8,542,388,391.4 15,955,106,248. 15,279,444,339. 3,511,571,767.2 43,288,510,746.7 39,550,418,641.
(including
9 77 27 5 8 99
long-term
borrowing
s due in 1
year)
Bonds
payable
(including
2,279,661,452.9 3,130,908,674.2 8,231,500,000.0 14,499,452,154.6 11,991,324,964.
bonds 857,382,027.40
6 4 0 0 49
payable
due in 1
year)
Lease
liabilities
(including
1,822,289,622.7 5,478,572,213.0 5,592,917,358.1
lease 765,923,415.10 715,393,478.90 8,782,178,729.73
1 2 5
liabilities
due in 1
year)
46,815,073,091. 19,801,408,401. 17,959,115,989. 17,221,643,980. 101,797,241,462. 92,148,969,090.
Total
39 91 38 27 95 76
Continued table
Item Undiscounted contractual cash flows at the beginning of period Balance sheet date
Due in 1 year or 1-2 years 2-5 years Over 5 years Total Book value
on demand
402
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Short-term 15,265,628,821.23 15,265,628,821.23 15,159,358,595.63
borrowings
Notes payable 1,191,121,105.53 1,191,121,105.53 1,191,121,105.53
Accounts payable 8,394,718,497.57 8,394,718,497.57 8,394,718,497.57
Other payables 3,435,816,987.21 3,435,816,987.21 3,435,816,987.21
(excluding
interest payable
and dividends
payable)
Long-term 5,582,707,985.59 13,300,939,843.58 17,870,731,822.02 4,177,999,459.40 40,932,379,110.59 36,930,396,337.51
borrowings
(including long-
term borrowings
due in 1 year)
Bonds payable 194,636,521.70 2,210,818,030.47 2,541,008,182.82 9,262,753,808.79 14,209,216,543.78 11,480,510,288.50
(including bonds
payable due in 1
year)
Lease liabilities 907,457,308.66 658,755,867.21 1,680,428,229.14 5,450,767,495.37 8,697,408,900.38 5,417,403,677.49
(including lease
liabilities due in
1 year)
Total 34,972,087,227.49 16,170,513,741.26 22,092,168,233.98 18,891,520,763.56 92,126,289,966.29 82,009,325,489.44
Note: other current liabilities are the balance after deduction of output tax to be transferred, and the convertible corporate bonds in
the bonds payable are deemed as held to maturity without conversion into shares halfway.
XI. Disclosure of fair value
1. Ending fair value of assets and liabilities measured at fair value
Unit: Yuan
Ending fair value
Item Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Continuous
measurement of fair -- -- -- --
value
(I) Held-for-trading
86,905,786.55 86,905,786.55
financial assets
1. Financial assets at
fair value through 86,905,786.55 86,905,786.55
profit or loss
(1) Investment in debt
0.00
instruments
(2) Investments in
0.00
equity instruments
(3) Derivative financial
86,905,786.55 86,905,786.55
assets
(III) Investments in
other equity 320,276,827.48 320,276,827.48
instruments
Total assets
continuously measured 86,905,786.55 320,276,827.48 407,182,614.03
at fair value
403
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(VI) Held-for-trading
48,621,136.25 48,621,136.25
financial liabilities
Wherein: trading bonds
0.00
issued
Derivative
48,621,136.25 48,621,136.25
financial liabilities
Others 0.00
(VII) Financial
liabilities desiganted as
0.00
measured at fair value
through profit or loss
Total liabilities
continuously measured 48,621,136.25 48,621,136.25
at fair value
II. Non-continuous
measurement of fair -- -- -- --
value
2. Basis for determination of market prices of continuous and non-continuous level 1 fair value
measurement items
The derivative financial assets in the held-for-trading financial assets are option contracts, futures contracts, interest rate swaps and
foreign exchange forwards purchased, which are recognized based on the ending quotations provided by futures trading centers
and others.
3. Qualitative and quantitative information about valuation techniques and important parameters used
for continuous and non-continuous level 3 fair value measurement items
The other equity instrument investments of the Company involved in level 3 fair value measurement are equities held by the
Company in unlisted companies. There were no significant changes in the operating environments, business condition and
financial condition of invested entities, so the Company measures at investment cost as the reasonable estimate of fair value.
XII. Related parties and related-party transactions
1. The parent company of the Company
Shareholding ratio Ratio of voting
Name of parent Place of of the parent power held by the
Nature of business Registered capital
company registration company in this parent company in
Company this Company
New Hope Group
Chengdu Management 3,200,000,000.00 25.08% 25.08%
Co., Ltd.
South Hope R&D, wholesale
Lhasa, Tibet 1,034,313,725.00 29.50% 29.50%
Industrial Co., Ltd. and retail
Remarks on the parent company of the Company
Note: the controlling shareholder of South Hope Industrial Co., Ltd., the largest shareholder of the Company, is New Hope Group
Co., Ltd., the second largest shareholder of the Company , so the controlling shareholder of the Company is New Hope Group Co.,
404
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Ltd., while the actual controller of New Hope Group Co., Ltd. is Liu Yonghao, therefore the ultimate actual controller of the
Company is Liu Yonghao.
The ultimate controlling party of this Company is New Hope Group Co., Ltd.
Other remarks:
2. Subsidiaries of the Company
The subsidiaries of the Company are detailed in Note IX. 1. (1) “Composition of the business group”.
3. Joint ventures and affiliates of the Company
The important joint ventures and affiliates of this Company are detailed in Note VII. 9. “Long-term equity investments”.
Other joint ventures or affiliates that incurred related-party transactions with the Company in the current period or formed balances
out of previous related-party transactions with the Company are detailed as follows:
Name of joint venture or affiliate Relationship with the Company
New Hope Finance Co., Ltd. Affiliate
Qianxinan Hope Farming Co., Ltd. Affiliate
Hebei Kinghey Sausage Casings Co., Ltd. Affiliate
Shanghai Liuhe Qinqiang Food Co., Ltd. Affiliate
Qingdao Big Herdsman Machinery Co., Ltd. Affiliate
Nanjing Heda Food Co., Ltd. Affiliate
Shandong Hypor Liuhe Breeding Co., Ltd. Affiliate
NHE (Beijing) Technology Co., Ltd. Affiliate
Anhui Antai Agricultural Development Co., Ltd. Affiliate
Xinzhi Huide Machinery Technology Co., Ltd. Affiliate
Anhui Xinhua Ducks Co., Ltd. Affiliate
Yan’an Xinyongxiang Technology Co., Ltd. Joint venture
Beijing Meihao Meideling Food Co., Ltd. Joint venture
Guangdong Hope No.1 Equity Investment Partnership (LP) Joint venture
Shenyang New Hope New Agricultural Industry Fund
Joint venture
Partnership (LP)
Shandong Gongrong New Hope Equity Investment Fund
Joint venture
Partnership (LP)
Hainan Nongken New Hope Farming Technology Co., Ltd. Joint venture
Zhanjiang Guangken Xinhao Farming Co., Ltd. Joint venture
Taishan Jiaxin Logistics Co., Ltd. Joint venture
Anhui Xinqiao Down Co., Ltd. Joint venture
Other remarks
4. Other related parties
Name of other related parties Relationship between other related parties and the Company
Other subsidiaries controlled by New Hope Holding Group
Companies controlled by the same actual controller
Co., Ltd.
A company controlled by persons acting in concert with the
Yunnan New Hope Xuelan Livestock Technology Co., Ltd.
ultimate controller
A company controlled by persons acting in concert with the
HaiYuan New Hope Livestock Co., Ltd.
ultimate controller
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A company controlled by persons acting in concert with the
Shilin New Hope Xuelan Livestock Co., Ltd.
ultimate controller
A company controlled by persons acting in concert with the
Yongchang New Hope Xuelan Livestock Co., Ltd.
ultimate controller
New Hope Dairy Co., Ltd. and other majority-owned Companies controlled by persons acting in concert with the
subsidiaries ultimate controller
New Hope Property Service Group Co., Ltd. and its majority-
Companies controlled by the same actual controller
owned subsidiaries
Sichuan Xingong Shengfei Construction Engineering Co., Ltd. A company controlled by the same actual controller
A company controlled by an affiliate of the controlling
Beijing Porridge Jiahe Restaurant Management Co., Ltd.
shareholder
Qingdao Fresh Life Technology Service Co., Ltd. A company controlled by the same actual controller
Sichuan Xinrong Nutrition Technology Co., Ltd. and its
Companies controlled by the same actual controller
majority-owned subsidiaries
Chengdu Yunlizhi Technology Co., Ltd. and its majority-owned
Companies controlled by the same actual controller
subsidiaries
Grass Green Group Co., Ltd. and other majority-owned
Companies controlled by the same actual controller
subsidiaries
Hangzhou Zhongyi Eco-Environmental Engineering Co. Ltd. A company controlled by the same actual controller
Zhejiang Shuimei Environmental Protection Engineering Co.,
A company controlled by the same actual controller
Ltd.
Hangzhou XingYuan Environmental Protection Equipment Co.,
A company controlled by the same actual controller
Ltd.
Zhejiang Xinzhi Tanhe Digital Technology Co., Ltd. A company controlled by the same actual controller
Yunnan Xinlong Mineral Feed Co., Ltd. A company controlled by the same actual controller
Sichuan New Hope Trade Co., Ltd。 A company controlled by the same actual controller
Sichuan Chuanwazi Food Co., Ltd. A company controlled by the same actual controller
Beijing Jiexian Information Technology Co., Ltd. A company controlled by the same actual controller
Xinzhi Double Carbon Technology Co., Ltd. A company controlled by the same actual controller
New Hope Chemical Investment Co., Ltd. and its majority-
Companies controlled by the same actual controller
owned subsidiaries
Chengdu Win Choice Technology Service Co., Ltd. A company controlled by key management
Sichuan New Hope Fresh Life Commercial Chain Co., Ltd. A company controlled by key management
Other remarks
5. Related-party transactions
(1) Related-party transactions of of purchase and sale of goods and provision and receipt of services
Statement of purchase of goods/receipt of services
Unit: Yuan
Whether the
Content of related- Transaction limit Amount of the
Related party Current amount transaction limit
party transaction approved previous period
was exceeded
Hangzhou
XingYuan
Purchase of
Environmental
breeding 956,184.00 60,000,000.00 No 84,250,393.94
Protection
equipment
Equipment Co.,
Ltd.
Xinzhi Huide Purchase of
Mechanical breeding 69,336,712.38 270,000,000.00 No 28,404.38
Technology Co., equipment
406
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Ltd. and its
majority-owned
subsidiaries
Sichuan Xinrong
Nutrition
Technology Co.,
Purchase of goods 43,268,125.51 155,000,000.00 No 61,803,260.96
Ltd. and its
majority-owned
subsidiaries
Sichuan
Chuanwazi Food Purchase of goods 605,352.02 40,000,000.00 No 0.00
Co., Ltd.
Beijing Jiexian
Information
Purchase of goods 17,404,643.17 80,000,000.00 No 0.00
Technology Co.,
Ltd.
Grass Green
Group Co., Ltd.
Purchase of goods 621,925.62 10,000,000.00 No 2,627,028.41
and other majority-
owned subsidiaries
New Hope Dairy
Co., Ltd. and its
Purchase of goods 270,480.77 2,350,000.00 No 1,092,464.85
majority-owned
subsidiaries
Yunnan Xinlong
Mineral Feed Co., Purchase of goods 51,397,301.76 84,000,000.00 No 0.00
Ltd.
Sichuan New
Hope Trade Co., Purchase of goods 1,314,224,511.11 3,000,000,000.00 No 0.00
Ltd。
Other subsidiaries
controlled by New
Purchase of goods 3,911,526.93 80,000,000.00 No 65,004,151.47
Hope Holding
Group Co., Ltd.
Qingdao Fresh
Cold chain
Life Technology 59,060,927.88 100,000,000.00 No 96,428,420.91
transport services
Service Co., Ltd.
Chengdu Yunlizhi
Technology Co.,
Cold chain
Ltd. and its 90,140,404.60 300,000,000.00 No 42,721,900.72
transport services
majority-owned
subsidiaries
Grass Green
Group Co., Ltd. Cold chain
8,343,312.92 50,000,000.00 No 12,727,820.38
and other majority- transport services
owned subsidiaries
Zhejiang Xinzhi
Engineering
Tanhe Digital
construction 20,899,094.32 110,000,000.00 No 81,492,919.13
Technology Co.,
services
Ltd.
Xinzhi Double
Engineering
Carbon
construction 0.00 320,000,000.00 No 0.00
Technology Co.,
services
Ltd.
Hangzhou Engineering
Zhongyi Eco- construction 10,665,990.31 190,000,000.00 No 81,306,664.30
Environmental services
407
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Engineering Co.
Ltd.
Zhejiang Shuimei
Environmental Engineering
Protection construction 0.00 0.00 No 4,004,999.97
Engineering Co., services
Ltd.
Sichuan Xingong
Shengfei Engineering
Construction construction 48,058,592.05 250,000,000.00 No 102,694,980.00
Engineering Co., services
Ltd.
Other subsidiaries
Property
controlled by New
management and 2,807,493.74 10,000,000.00 No 3,378,075.84
Hope Holding
catering services
Group Co., Ltd.
Qingdao Big
Herdsman
Machinery Co.,
Purchase of goods 26,389,851.25 217,297,093.32
Ltd. and its
majority-owned
subsidiaries
Shanghai Liuhe
Qinqiang Food Purchase of goods 135,186.12 48,803.27
Co., Ltd.
Shandong Hypor
Liuhe Breeding Purchase of goods 2,817,219.00 16,212,914.89
Co., Ltd.
Sichuan New
Hope Fresh Life
Purchase of goods 2,000.00 3,100.00
Commercial Chain
Co., Ltd.
Beijing Meihao
Meideling Food Purchase of goods 4,247,101.28 5,321,054.39
Co., Ltd.
Yan’an
Xinyongxiang
Purchase of goods 9,760,652.68 11,600,262.12
Technology Co.,
Ltd.
Anhui Antai
Agricultural
Purchase of goods 0.00 2,646,400.00
Development Co.,
Ltd.
Beijing Porridge
Jiahe Restaurant
Purchase of goods 855,793.96 0.00
Management Co.,
Ltd.
Anhui Xinqiao
Purchase of goods 1,080,942.32
Down Co., Ltd.
Total 1,787,261,325.70 5,111,350,000.00 892,691,113.25
Statement of sale of goods/provision of services
Unit: Yuan
Content of related-party Amount of the previous
Related party Current amount
transaction period
Yunnan New Hope Xuelan
Sale of goods 9,493,913.50 10,042,476.63
Livestock Technology Co.,
408
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Ltd.
HaiYuan New Hope
Sale of goods 8,862,162.67 21,767,214.58
Livestock Co., Ltd.
Shilin New Hope Xuelan
Sale of goods 12,045,499.81 0.00
Livestock Co., Ltd.
Yongchang New Hope
Sale of goods 9,842,598.73 0.00
Xuelan Livestock Co., Ltd.
New Hope Dairy Co., Ltd.
and other majority-owned Sale of goods 21,243,650.47 27,644,597.74
subsidiaries
Sichuan Xinrong Nutrition
Technology Co., Ltd. and its Sale of goods 24,436,255.13 19,419,969.01
majority-owned subsidiaries
Beijing Jiexian Information
Sale of goods 10,459,233.36 0.00
Technology Co., Ltd.
Grass Green Group Co., Ltd.
and other majority-owned Sale of goods 18,079,969.77 20,418,251.74
subsidiaries
New Hope Chemical
Investment Co., Ltd. and its Sale of goods 7,334,206.81 0.00
majority-owned subsidiaries
Other subsidiaries controlled
by New Hope Holding Group Sale of goods 2,548,369.05 33,339,324.33
Co., Ltd.
Beijing Meihao Meideling
Sale of goods 4,320,682.05 158,751.34
Food Co., Ltd.
Qianxinan Hope Farming Co.,
Sale of goods 2,100.00 0.00
Ltd.
Hebei Kinghey Sausage
Sale of goods 29,764,145.01 28,327,877.95
Casings Co., Ltd.
New Hope Finance Co., Ltd. Sale of goods 1,445.87 0.00
Anhui Antai Agricultural
Sale of goods 20,854,852.46 21,755,957.51
Development Co., Ltd.
Beijing Porridge Jiahe
Restaurant Management Co., Sale of goods 17,642,969.10 0.00
Ltd.
Shanghai Liuhe Qinqiang
Sale of goods 347,944,350.05 343,821,163.29
Food Co., Ltd.
Anhui Xinqiao Down Co.,
Sale of goods 15,645,411.42 95,407,719.13
Ltd.
Shandong Hypor Liuhe
Sale of goods 559,785.78 3,714,478.98
Breeding Co., Ltd.
Yan’an Xinyongxiang
Sale of goods 0.00 525,116.04
Technology Co., Ltd.
Xinzhi Huide Mechanical
Technology Co., Ltd. and its Sale of goods 2,230,795.82 25,574,870.08
majority-owned subsidiaries
Hainan Nongken New Hope
Sale of goods 6,627,605.82 1,929,357.81
Farming Technology Co., Ltd.
Shandong Gongrong New
Hope Equity Investment Fund Consulting services 8,300,981.94 0.00
Partnership (LP)
Shenyang New Hope New
Agricultural Industry Fund Consulting services 5,613,853.57 5,708,192.31
Partnership (LP)
Guangdong Hope No.1
Consulting services 0.00 7,075,471.50
Equity Investment Partnership
409
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(LP)
Total 583,854,838.19 666,630,789.97
Remarks on related-party transactions of purchase and sale of goods and provision and receipt of services
(2) Related-party leases
The Company as lessor:
Unit: Yuan
Rental revenue recognized in Rental revenue recognized in
Name of lessee Type of leased assets
the current period the prior period
Beijing Porridge Jiahe
Restaurant Management Co., Office building 304,352.38 323,046.43
Ltd.
Shandong Hypor Liuhe
Pig farm 4,136,828.17 5,426,545.73
Breeding Co., Ltd.
Beijing Meihao Meideling
Production plant 6,632,233.62 5,098,904.23
Food Co., Ltd.
Grass Green Group Co., Ltd.
and its majority-owned Dormitory building 8,807.34 8,804.40
subsidiaries
Yan’an Xinyongxiang
Pig farm 8,667,045.54 7,526,485.46
Technology Co., Ltd.
South Hope Industrial Co.,
Ltd. and its majority-owned Office building 0.00 90,981.56
subsidiaries
Subsidiaries controlled by
Office building 0.00 47,983.49
New Hope Group Co., Ltd.
Xinzhi Huide Machinery
Equipment 557,592.24 0.00
Technology Co., Ltd.
Total 20,306,859.29 18,522,751.30
The Company as lessee:
Unit: Yuan
Rental charges of
Variable lease
short-term leases
payments not
and leases of low-
included in the Interest expenses Right-of-use assets
value assets for Rental paid
measurement of on lease liabilities added
Name Type of simplified
lease liabilities (if
of leased processing (if
applicable)
lessor assets applicable)
Amoun Amoun Amoun Amoun Amoun
Current t of the Current t of the Current t of the Current t of the Current t of the
amount previou amount previou amount previou amount previou amount previou
s period s period s period s period s period
Sichuan
Huaxi
Guoxin Office
55,453. 583,715 55,453. 583,715 31,578. 13,221,
g Real buildin
86 .06 86 .06 87 509.89
Estate g
Co.,
Ltd.
Sichuan Office 1,185,9 1,185,9 47,919. 2,225,5
410
Full text of the Semiannual Report 2022 of New Hope Liuhe Co., Ltd.
New buildin 43.20 43.20 84 47.61
Huaxi g
Dairy
Co.,
Ltd.
55,453. 1,769,6 55,453. 1,769,6 79,498. 15,447,
Total
86 58.26 86 58.26 71 057.50
Remarks on related-party leases
(3) Related-party guarantees
The Company as guarantor
Unit: Yuan
Expiry date of Whether the guarantee
Guaranteed party Amount guaranteed Start date of guarantee
guarantee has been fulfilled
Anyang Xinliu
96,500,000.00 Jan. 21, 2021 Jul. 28, 2027 No
Technology Co., Ltd.
Anyang Xinliu
96,500,000.00 Jan. 20, 2021 Jul. 28, 2027 No
Technology Co., Ltd.
Anyue New Hope
Liuhe Farming Co., 38,904,800.00 May 19, 2021 May 19, 2027 No
Ltd.
Baiyin New Hope
Farming Technology 42,500,000.00 Aug. 31, 2020 Aug. 30, 2023 No
Co., Ltd.
Beijing Kinghey Food
47,127,100.00 Jun. 12, 2020 Jun. 11, 2025 No
Co., Ltd.
Beijing Kinghey Food
50,000,000.00 Apr. 27, 2022 Apr. 27, 2023 No
Co., Ltd.
Beijing Xinliu Farming
25,571,600.00 Jun. 25, 2021 Jun. 24, 2032 No
Technology Co., Ltd.
Beijing Xinliu Farming
207,000,000.00 Jun. 30, 2020 Jun. 16, 2028 No
Technology Co., Ltd.
Bijie Xinliu Farming
95,040,000.00 May 19, 2020 May 18, 2029 No
Co., Ltd.
Cao County Xinhao
240,002,800.00 Apr. 28, 2020 Apr. 19, 2025 No
Farming Co., Ltd.
Changle New Hope
Liuhe Farming Co., 30,320,000.00 Feb. 28, 2021 Feb. 25, 2026 No
Ltd.
Changyi Xinhao
95,000,000.00 Jun. 19, 2020 Jun. 20, 2023 No
Livestock Co., Ltd.
Chenzhou Xinhao
362,250,000.00 Apr. 15, 2020 Apr. 13, 2029 No
Farming Co., Ltd.
Dacheng Xinhao
68,000,000.00 Jul. 23, 2021 May 20, 2030 No
Technology Co., Ltd.
Shan County Xinhao
130,825,000.00 Jan. 08, 2021 Dec. 27, 2025 No
Farming Co., Ltd.
Dong’e New Hope
Liuhe Swine Breeding 152,000,000.00 May 22, 2020 May 21, 2025 No
Co., Ltd.
Donghai Xinhao
140,000,000.00 Aug. 18, 2020 Aug. 17, 2025 No
Modern Farming Co.,
411
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Ltd.
Dongying Xinhao
Modern Farming Co., 228,000,000.00 Dec. 1, 2020 Nov. 23, 2025 No
Ltd.
Dongying Xinhao
Modern Farming Co., 228,000,000.00 Dec. 29, 2020 Nov. 23, 2025 No
Ltd.
Fuping Xinliu Farming
76,000,000.00 Nov. 12, 2020 May 20, 2029 No
Technology Co., Ltd.
Fuxin Liuhe Farming
100,000,000.00 Mar. 28, 2022 Mar. 27, 2023 No
Co., Ltd.
Gansu New Hope
Liuhe Farming Co., 134,996,600.00 Jun. 29, 2020 Jun. 20, 2027 No
Ltd.
Ganzhou Hope Feed
10,000,000.00 Jul. 12, 2021 Jul. 12, 2022 No
Co., Ltd.
Gaotang Xinhao
61,623,900.00 Aug. 13, 2020 Aug. 30, 2025 No
Farming Co., Ltd.
Gaotang Xinhao
81,194,400.00 Jul. 08, 2020 Jul. 07, 2026 No
Farming Co., Ltd.
Guanling Xinmu
126,160,000.00 Oct. 29, 2020 Oct. 28, 2030 No
Breeding Co., Ltd.
Guang’an Xinhao
238,964,040.00 Apr. 23, 2021 Feb. 27, 2030 No
Farming Co., Ltd.
Guangdong Jiahao
Agricultural Products 10,000,000.00 Jan. 28, 2022 Jan. 28, 2023 No
Co., Ltd.
Guanghan Guoxiong
10,000,000.00 Jan. 10, 2022 Jan. 10, 2023 No
Feed Co., Ltd.
GuangYuan Xinchi
58,000,000.00 Mar. 16, 2021 Mar. 15, 2031 No
Farming Co., Ltd.
GuangYuan Xinhao
Agricultural 457,500,000.00 Jun. 30, 2020 Jun. 28, 2030 No
Development Co., Ltd.
Guangzhou Liuhe Feed
50,000,000.00 May 27, 2022 May 24, 2023 No
Co., Ltd.
Guigang Xinliu
Farming Technology 199,000,000.00 Mar. 12, 2021 Jan. 07, 2031 No
Co., Ltd.
Guiyang New Hope
Agricultural 70,000,000.00 Jun. 29, 2022 Jun. 26, 2023 No
Technology Co., Ltd.
Hainan Chengmai New
Hope Farming Co., 42,500,000.00 Oct. 23, 2020 Oct. 22, 2023 No
Ltd.
Hainan Lingao Xinliu
65,000,000.00 Mar. 27, 2020 Nov. 20, 2025 No
Breeding Co., Ltd.
Hebei Kinghey Meat
150,000,000.00 Jul. 30, 2021 Jul. 29, 2022 No
Industry Co., Ltd.
Hebei Xinhao Fucheng
Agricultural 223,460,000.00 Jun. 30, 2020 Jun. 30, 2028 No
Technology Co., Ltd.
Hezhou Xinhao
315,000,000.00 Apr. 15, 2020 Apr. 13, 2030 No
Farming Co., Ltd.
Heishan Xinliu
Farming Technology 135,000,000.00 Feb. 23, 2021 Feb. 19, 2024 No
Co., Ltd.
412
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Hengnan Muyun Eco-
126,000,000.00 May 19, 2020 May 18, 2029 No
agriculture Co., Ltd.
Hengshui Jizhou
District Xinhao 121,600,000.00 Jan. 20, 2022 Jun. 15, 2029 No
Farming Co., Ltd.
Hengyang Xinhao
81,863,500.00 Nov. 2, 2020 Oct. 28, 2025 No
Farming Co., Ltd.
Hubei Tuanfeng New
10,000,000.00 Aug. 26, 2021 Aug. 25, 2022 No
Hope Feed Co., Ltd.
Hubei Xinhao Farming
411,500,000.00 Oct. 9, 2020 Sept. 22, 2028 No
Co., Ltd.
Hubei Xinhao Farming
223,064,800.00 May 28, 2020 May 27, 2027 No
Co., Ltd.
Huanggang New Hope
Feed Technology Co., 10,000,000.00 Aug. 25, 2021 Aug. 25, 2022 No
Ltd.
Jiaxiang New Hope
Liuhe Swine Breeding 84,000,000.00 Jun. 24, 2020 Jun. 10, 2024 No
Co., Ltd.
Jiangmen Liuhe Feed
50,000,000.00 Apr. 7, 2022 Mar. 31, 2025 No
Co., Ltd.
Jiangmen Liuhe Feed
100,000,000.00 Mar. 26, 2021 Mar. 25, 2024 No
Co., Ltd.
Jiangmen Xinliu
38,000,000.00 Aug. 10, 2021 Aug. 10, 2024 No
Farming Co., Ltd.
Jiangxi New Hope
Farming Technology 189,875,000.00 May 10, 2021 Oct. 27, 2025 No
Co., Ltd.
Julu Xinliu Farming
67,550,000.00 May 19, 2021 May 18, 2026 No
Technology Co., Ltd.
Juye Xinhao Farming
217,500,000.00 Jul. 09, 2020 Jun. 22, 2027 No
Co., Ltd.
Kangping Xinwang
233,332,500.00 Feb. 18, 2021 Feb. 4, 2026 No
Farming Co., Ltd.
Kangping Xinwang
20,000,000.00 Feb. 23, 2021 Feb. 22, 2024 No
Farming Co., Ltd.
Kunming New Hope
Animal Nutritious 10,000,000.00 Aug. 31, 2021 Aug. 30, 2022 No
Food Co., Ltd.
Kunming New Hope
Animal Nutritious 70,000,000.00 Apr. 18, 2022 Apr. 12, 2023 No
Food Co., Ltd.
Kunming New Hope
Agricultural 20,000,000.00 Apr. 24, 2022 Apr. 20, 2023 No
Technology Co., Ltd.
Kunming New Hope
Agricultural 10,000,000.00 Sept. 13, 2021 Sept. 13, 2022 No
Technology Co., Ltd.
Laibin Xinhao Farming
266,800,000.00 Mar. 05, 2021 Mar. 05, 2026 No
Co., Ltd.
Laiwu New Hope
10,000,000.00 Mar. 2, 2022 Mar. 2, 2023 No
Liuhe Food Co., Ltd.
Laixi New Hope Liuhe
60,585,000.00 Aug. 27, 2020 Jun. 20, 2025 No
Farming Co., Ltd.
Laixi New Hope Liuhe
141,323,800.00 Jun. 28, 2020 Apr. 09, 2030 No
Farming Co., Ltd.
Laixi New Hope Liuhe 500,000,000.00 May 31, 2022 May 31, 2025 No
413
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Farming Co., Ltd.
Laixi New Hope Liuhe
77,755,300.00 Apr. 17, 2020 Apr. 09, 2030 No
Farming Co., Ltd.
Laixi New Hope Liuhe
114,223,900.00 Oct. 28, 2020 Oct. 28, 2025 No
Farming Co., Ltd.
Laiyang Xinmu
136,000,000.00 Nov. 18, 2020 May 19, 2029 No
Breeding Co., Ltd.
Laiyang Xinhao
182,000,000.00 Apr. 30, 2020 Apr. 18, 2025 No
Livestock Co., Ltd.
Lezhi Xinmu Farming
256,500,000.00 Mar. 05, 2021 Feb. 23, 2029 No
Co., Ltd.
Liquan New Hope
Liuhe Farming Co., 142,000,000.00 Sept. 29, 2020 Nov. 20, 2026 No
Ltd.
Liaoning Kinghey
50,000,000.00 Feb. 24, 2022 Feb. 23, 2023 No
Food Co., Ltd.
Liaoning Xinwang
561,421,600.00 Mar. 27, 2020 Mar. 04, 2031 No
Technology Co., Ltd.
Liaoning Xinwang
295,500,000.00 Apr. 13, 2021 Apr. 7, 2024 No
Technology Co., Ltd.
Liaocheng Xinhao
120,319,500.00 Dec. 12, 2019 Nov. 24, 2024 No
Farming Co., Ltd.
Linyi Liuhe Food Co.,
10,000,000.00 Mar. 2, 2022 Mar. 2, 2023 No
Ltd.
Liuzhou Xinliu
Farming Technology 85,000,000.00 Oct. 27, 2020 Oct. 10, 2028 No
Co., Ltd.
Longhai New Hope
Liuhe Farming Co., 122,500,000.00 Dec. 23, 2020 Dec. 21, 2025 No
Ltd.
Longhui New Hope
Liuhe Farming Co., 54,500,000.00 Nov. 6, 2020 Sept. 27, 2028 No
Ltd.
Luding Xinyue
Farming Technology 44,000,000.00 Apr. 02, 2021 May 6, 2029 No
Co., Ltd.
Meishan Xinmu
247,000,000.00 Mar. 30, 2021 Mar. 25, 2029 No
Farming Co., Ltd.
Nanchong New Hope
10,000,000.00 Jan. 04, 2022 Jan. 03, 2025 No
Feed Co., Ltd.
Nanchong New Hope
45,000,000.00 Mar. 29, 2021 Mar. 28, 2024 No
Feed Co., Ltd.
Nanjing Xinmu
80,285,700.00 Sept. 22, 2020 Sept. 22, 2025 No
Farming Co., Ltd.
Nanjing Guoxiong
19,500,000.00 Apr. 28, 2022 Apr. 28, 2023 No
Technology Co., Ltd.
Nanning Xinliu
Farming Technology 112,500,000.00 Apr. 15, 2020 Apr. 13, 2028 No
Co., Ltd.
Nanning New Hope
Farming Technology 50,000,000.00 Jul. 28, 2021 Jan. 12, 2025 No
Co., Ltd.
Nanning New Hope
Farming Technology 50,000,000.00 Mar. 30, 2022 Mar. 29, 2023 No
Co., Ltd.
Neiqiu Xinliu Farming
290,003,400.00 Jul. 20, 2020 Jul. 19, 2029 No
Technology Co., Ltd.
414
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Ningbo New Hope
Liuhe Farming Co., 131,250,000.00 Jul. 03, 2020 Jul. 03, 2025 No
Ltd.
Ningming Xinhao
360,000,000.00 Apr. 15, 2020 Apr. 14, 2030 No
Farming Co., Ltd.
Pizhou New Hope
Liuhe Farming Co., 180,000,000.00 Mar. 31, 2021 Mar. 30, 2026 No
Ltd.
PingYuan Xinliu
Farming Technology 45,290,500.00 Mar. 1, 2021 Dec. 1, 2027 No
Co., Ltd.
Pucheng Xinliu
180,871,300.00 Nov. 20, 2020 Nov. 19, 2025 No
Technology Co., Ltd.
Puyang Xinliu Farming
200,000,000.00 Jan. 6, 2021 Aug. 06, 2025 No
Technology Co., Ltd.
Qingdao Liuhe Feed
8,000,000.00 Mar. 31, 2022 Mar. 31, 2023 No
Co., Ltd.
Raoyang Xinhao
50,000,000.00 Apr. 30, 2021 Mar. 30, 2024 No
Farming Co., Ltd.
Rong County Xinmu
251,000,000.00 Mar. 12, 2020 Nov. 20, 2028 No
Farming Co., Ltd.
Rugao Xinhao Farming
50,000,000.00 Oct. 15, 2020 Oct. 14, 2023 No
Co., Ltd.
Ruzhou Quansheng
Farming Technology 84,000,000.00 Jan. 6, 2021 Aug. 06, 2025 No
Co., Ltd.
Rui'an New Hope
Liuhe Farming Co., 50,000,000.00 Nov. 13, 2020 Dec. 21, 2025 No
Ltd.
Santai New Hope
Farming Technology 170,000,000.00 Apr. 01, 2022 Mar. 31, 2025 No
Co., Ltd.
Shandong Kinghey
140,745,100.00 Jul. 13, 2021 Jul. 01, 2028 No
Food Co., Ltd.
Shandong New Hope
40,000,000.00 Apr. 29, 2020 Apr. 28, 2023 No
Liuhe Group Co., Ltd.
Shaoyang Xinmu
38,000,000.00 Jul. 30, 2021 Apr. 21, 2028 No
Farming Co., Ltd.
Shenze New Hope
Liuhe Breeding Co., 205,610,000.00 May 19, 2020 May 6, 2028 No
Ltd.
Shiyan Xinyue
Farming Technology 111,925,000.00 Apr. 15, 2021 Apr. 11, 2029 No
Co., Ltd.
Shuozhou Xinhao
288,000,000.00 Sept. 1, 2020 Mar. 07, 2024 No
Farming Co., Ltd.
Sichuan New Hope
Animal Nutrition 426,039,600.00 Jan. 18, 2022 Nov. 27, 2022 No
Technology Co., Ltd.
Sichuan New Hope
Liuhe Farming Co., 294,120,000.00 Dec. 31, 2019 Dec. 25, 2026 No
Ltd
Sichuan New Hope
Liuhe Farming Co., 160,000,000.00 Feb. 10, 2020 Jan. 31, 2023 No
Ltd
Sichuan New Hope
298,000,000.00 Feb. 25, 2021 Feb. 24, 2023 No
Liuhe Farming Co.,
415
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Ltd
Suixi Xinhao Farming
40,000,000.00 Mar. 29, 2021 Mar. 28, 2026 No
Co., Ltd.
Taiqian Xinliu Farming
96,500,000.00 Aug. 27, 2020 Jun. 21, 2027 No
Technology Co., Ltd.
Taiqian Xinliu Farming
96,500,000.00 Aug. 27, 2020 Jun. 21, 2027 No
Technology Co., Ltd.
Tangshan Xinhao
243,000,000.00 Apr. 24, 2020 Apr. 23, 2025 No
Farming Co., Ltd.
Tangshan Xinhao
374,100,000.00 May 8, 2020 Apr. 27, 2028 No
Farming Co., Ltd.
Tianjin Xinliu Farming
222,003,300.00 Feb. 5, 2021 Jan. 08, 2030 No
Technology Co., Ltd.
Tongcheng Xinliu
Farming Technology 125,599,900.00 Jan. 27, 2021 Nov. 9, 2025 No
Co., Ltd.
Tongcheng Xinliu
Farming Technology 53,900,000.00 Jan. 01, 2022 Oct. 21, 2027 No
Co., Ltd.
Tongcheng Xinliu
Farming Technology 136,495,900.00 Feb. 23, 2021 Oct. 21, 2027 No
Co., Ltd.
Weinan Xinliu
440,000,000.00 Dec. 24, 2019 Dec. 23, 2031 No
Technology Co., Ltd.
Weinan Xinliu
57,599,900.00 Mar. 2, 2021 Apr. 19, 2026 No
Technology Co., Ltd.
Wuqi Xinliu
95,000,000.00 Sept. 15, 2020 Nov. 20, 2027 No
Technology Co., Ltd.
Wuhe New Hope Liuhe
66,000,000.00 Jun. 29, 2021 Jun. 29, 2025 No
Livestock Co., Ltd.
Wuhe New Hope Liuhe
124,097,700.00 Jun. 04, 2020 Jun. 03, 2025 No
Livestock Co., Ltd.
Wuhe New Hope Liuhe
186,666,700.00 Sept. 29, 2020 Sept. 28, 2028 No
Livestock Co., Ltd.
Wuhe New Hope Liuhe
240,000,000.00 May 22, 2020 May 14, 2027 No
Livestock Co., Ltd.
Wuhe New Hope Liuhe
106,022,300.00 May 20, 2020 May 11, 2027 No
Livestock Co., Ltd.
Wuhe New Hope Liuhe
211,000,000.00 Mar. 24, 2021 Mar. 23, 2028 No
Livestock Co., Ltd.
Wulian Xinhao
75,416,700.00 Jun. 24, 2020 Jun. 20, 2025 No
Farming Co., Ltd.
Xiajiang Xinliu
52,500,000.00 Feb. 4, 2021 Oct. 14, 2025 No
Farming Co., Ltd.
Xiajin New Hope
Liuhe Farming Co., 54,401,000.00 Feb. 28, 2020 Feb. 24, 2026 No
Ltd.
Xiangyang New Hope
10,000,000.00 Nov. 25, 2021 Nov. 24, 2022 No
Liuhe Feed Co., Ltd.
Xiangshan Huatong
160,000,000.00 May 21, 2021 Mar. 10, 2026 No
Livestock Co., Ltd.
Xiaoyi New Hope
200,000,000.00 May 23, 2022 May 25, 2023 No
Liuhe Food Co., Ltd.
Xinji Xinliu Farming
193,000,000.00 Jan. 08, 2021 Jun. 21, 2027 No
Technology Co., Ltd.
Xinji Xinliu Farming
193,000,000.00 Jan. 14, 2021 Jun. 21, 2027 No
Technology Co., Ltd.
416
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New Hope Liuhe
(Zibo) Agricultural
39,600,000.00 Mar. 14, 2022 Feb. 21, 2029 No
Technology
Development Co., Ltd.
New Hope Singapore
2,348,990,000.00 Oct. 19, 2020 Oct. 19, 2023 No
Pte. Ltd.
New Hope Singapore
401,267,400.00 Oct. 1, 2021 Feb. 22, 2023 No
Pte. Ltd.
New Hope Singapore
147,186,600.00 Oct. 1, 2021 Oct. 7, 2022 No
Pte. Ltd.
New Hope Singapore
331,123,400.00 Oct. 1, 2021 Feb. 22, 2023 No
Pte. Ltd.
New Hope Singapore
146,302,500.00 Oct. 1, 2021 Jul. 23, 2022 No
Pte. Ltd.
New Hope Singapore
199,420,832.29 Oct. 1, 2021 Oct. 1, 2022 No
Pte. Ltd.
New Hope Singapore
299,894,700.00 Oct. 1, 2021 Oct. 27, 2022 No
Pte. Ltd.
Xingren Xinliu
Farming Technology 107,250,000.00 Sept. 30, 2020 Sept. 22, 2028 No
Co., Ltd.
Yantai Xinhao Farming
189,553,200.00 Oct. 12, 2020 Aug. 27, 2025 No
Co., Ltd.
Yantai Xinhao Farming
149,900,000.00 Oct. 27, 2020 Oct. 13, 2025 No
Co., Ltd.
Yanting Xinhao
39,333,000.00 Dec. 21, 2020 Dec. 3, 2025 No
Farming Co., Ltd.
Yanting Xinhao
240,000,000.00 Jan. 01, 2022 Mar. 31, 2025 No
Farming Co., Ltd.
Yanting Xinhao
110,450,000.00 Sept. 30, 2019 Sept. 30, 2024 No
Farming Co., Ltd.
YanYuan Xinliu
Farming Technology 200,000,000.00 Jun. 15, 2021 Apr. 28, 2031 No
Co., Ltd.
Yanshi Liuhe Feed Co.,
35,000,000.00 Jun. 24, 2022 Jun. 21, 2024 No
Ltd.
Yanggu Liuhe Luxin
50,000,000.00 Mar. 28, 2022 Mar. 27, 2023 No
Food Co., Ltd.
Yangling Besun
Agricultural Industry 70,000,000.00 Sept. 24, 2019 Sept. 24, 2024 No
Group Co., Ltd.
Yangling Besun
Agricultural Industry 7,186,900.00 Jun. 02, 2022 Dec. 21, 2028 No
Group Co., Ltd.
Yijun Xinliu
153,500,000.00 Nov. 15, 2019 Nov. 14, 2031 No
Technology Co., Ltd.
Yincheng Xinhao
296,184,200.00 Aug. 18, 2020 Dec. 20, 2030 No
Farming Co., Ltd.
Yincheng Xinhao
94,500,000.00 Sept. 25, 2020 Sept. 25, 2028 No
Farming Co., Ltd.
Yuncheng Dingtai Feed
10,000,000.00 Mar. 2, 2022 Jan. 02, 2023 No
Co., Ltd.
Zhanjiang Guoxiong
50,000,000.00 Apr. 19, 2022 Apr. 19, 2024 No
Feed Co., Ltd.
Zhangwu Xinwang
117,000,000.00 Jan. 04, 2022 Nov. 25, 2031 No
Farming Co., Ltd.
Changchun New Hope 14,000,000.00 Jun. 20, 2022 May 18, 2023 No
417
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Feed Co., Ltd.
Changchun New Hope
170,000,000.00 Apr. 27, 2022 Apr. 29, 2023 No
Feed Co., Ltd.
Zhaoqing Xinhao
216,000,000.00 Feb. 10, 2021 Feb. 9, 2028 No
Farming Co., Ltd.
Zhejiang Yihai
Agricultural 105,000,000.00 Jan. 20, 2021 Jul. 20, 2025 No
Development Co. Ltd.
Zhejiang Yihai
Agricultural 30,000,000.00 Apr. 26, 2022 Apr. 25, 2023 No
Development Co. Ltd.
Zhejiang Yihai
Agricultural 44,486,900.00 Feb. 26, 2021 Aug. 25, 2028 No
Development Co. Ltd.
Zhenjiang New Hope
Liuhe Farming Co., 110,000,000.00 Mar. 19, 2021 Dec. 17, 2025 No
Ltd.
Chongqing Pengshui
Xinliu Farming 72,500,000.00 Apr. 19, 2021 Apr. 19, 2029 No
Technology Co., Ltd.
Chongqing New Hope
200,000,000.00 May 31, 2021 May 30, 2024 No
Feed Co., Ltd.
Zibo Xinhao Farming
51,414,200.00 May 6, 2021 Feb. 23, 2030 No
Co., Ltd.
New Hope Liuhe Co.,
Ltd. Mianyang Hope 8,200.00 Jun. 01, 2022 May 31, 2023 No
Feed Branch
Emeishan New Hope
82,900.00 Jun. 01, 2022 May 31, 2023 No
Liuhe Feed Co., Ltd.
Chongqing New Hope
6,331,500.00 Jun. 01, 2022 May 31, 2023 No
Feed Co., Ltd.
Zihong Hengbo Feed
13,400.00 Jun. 01, 2022 May 31, 2023 No
Technology Co., Ltd.
Kunming New Hope
Agricultural 31,500.00 Jun. 01, 2022 May 31, 2023 No
Technology Co., Ltd.
Kunming New Hope
Animal Nutritious 165,700.00 Jun. 01, 2022 May 31, 2023 No
Food Co., Ltd.
Guiyang New Hope
Agricultural 5,362,500.00 Jun. 01, 2022 May 31, 2023 No
Technology Co., Ltd.
Qiandongnan New
Hope Farming 1,237,200.00 Jun. 01, 2022 May 31, 2023 No
Technology Co., Ltd.
New Hope Liuhe Feed
Co., Ltd. PingYuan 222,500.00 Jun. 01, 2022 May 31, 2023 No
Banch
Qingyun Liuhe Feed
12,100.00 Jun. 01, 2022 May 31, 2023 No
Co., Ltd.
Guantao Liuhe Food
805,500.00 Jun. 01, 2022 May 31, 2023 No
Co., Ltd. Feed Branch
Liaocheng Liuhe Feed
385,000.00 Jun. 01, 2022 May 31, 2023 No
Co., Ltd.
Huaihua New Hope
442,800.00 Jun. 01, 2022 May 31, 2023 No
Liuhe Feed Co., Ltd.
Nanjing Guoxiong 4,787,000.00 Jun. 01, 2022 May 31, 2023 No
418
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Technology Co., Ltd.
Baoji New Hope
23,800.00 Jun. 01, 2022 May 31, 2023 No
Farming Co., Ltd.
Lingbao New Hope
90,200.00 Jun. 01, 2022 May 31, 2023 No
Liuhe Feed Co., Ltd.
Shanghe Liuhe Feed
44,200.00 Jun. 01, 2022 May 31, 2023 No
Co., Ltd.
Tangshan New Hope
18,100.00 Jun. 01, 2022 May 31, 2023 No
Liuhe Feed Co., Ltd.
Hebei New Hope Feed
75,000.00 Jun. 01, 2022 May 31, 2023 No
Co., Ltd.
Pingxiang New Hope
625,700.00 Jun. 01, 2022 May 31, 2023 No
Feed Co., Ltd.
Changchun New Hope
783,500.00 Jun. 01, 2022 May 31, 2023 No
Feed Co., Ltd.
SanYuan New Hope
176,300.00 Jun. 01, 2022 May 31, 2023 No
Feed Co., Ltd.
Huai'an New Hope
146,400.00 Jun. 01, 2022 May 31, 2023 No
Feed Co., Ltd.
Shan County Liuhe
119,200.00 Jun. 01, 2022 May 31, 2023 No
Feed Co., Ltd.
Ju County Liuhe
119,800.00 Jun. 01, 2022 May 31, 2023 No
Xingrun Feed Co., Ltd.
Sichuan New Hope
Liuhe Farming Co., 456,200.00 Jun. 01, 2022 May 31, 2023 No
Ltd. Chengdu Branch
Zhanjiang Guoxiong
No. 1 Native Pig Feed 5,000,000.00 Jun. 01, 2022 May 31, 2023 No
Co., Ltd.
Nanning New Hope
Farming Technology 556,000.00 Jun. 01, 2022 May 31, 2023 No
Co., Ltd.
Tangshan Muzheng
568,600.00 Jun. 01, 2022 May 31, 2023 No
Feed Co., Ltd.
Sichuan New Hope
Animal Nutrition 49,560,700.00 Jun. 01, 2022 May 31, 2023 No
Technology Co., Ltd.
Heze Xinhao Feed Co.,
397,900.00 Jun. 01, 2022 May 31, 2023 No
Ltd.
Wei County New Hope
4,028,000.00 Jun. 01, 2022 May 31, 2023 No
Feed Co., Ltd.
Feed Plant of Zhejiang
Xindongwan
19,900.00 Jun. 01, 2022 May 31, 2023 No
Agricultural
Development Co., Ltd.
Hainan New Hope
Liuhe Supply Chain 28,369,600.00 Jun. 01, 2022 May 31, 2023 No
Technology Co., Ltd.
Zhongshan Liuhe Feed
49,900.00 Jun. 01, 2022 May 31, 2023 No
Co., Ltd.
Total 25,790,759,772.29
The Company as the guaranteed party
Unit: Yuan
Expiry date of Whether the guarantee
Guarantor Amount guaranteed Start date of guarantee
guarantee has been fulfilled
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Remarks on related-party guarantees
Note: 1. guarantees provided among subsidiaries:
Whether
the
Amount Start date of Expiry date of
Guarantor Guaranteed party guarantee
guaranteed guarantee guarantee
has been
fulfilled
New Hope Tarlac Agriculture
New Hope Singapore Pte. Ltd. 23,786,289.15 Apr. 7, 2022 Sept. 28, 2022 No
Inc.
New Hope Isabela Agriculture
New Hope Singapore Pte. Ltd. 8,660,648.87 Apr. 7, 2022 Sept. 17, 2022 No
Inc.
New Hope Central Luzon
New Hope Singapore Pte. Ltd. 29,519,394.74 Apr. 7, 2022 Sept. 15, 2022 No
Agriculture Inc.
Shandong New Hope Liuhe Qingdao New Hope Herun
4,174,253.79 Apr. 22, 2022 Apr. 21, 2027 No
Group Co., Ltd. Bio-technology Co., Ltd.
Total 66,140,586.55
(4) Remuneration of key management
Unit: Yuan
Item Current amount Amount of the previous period
Total compensation of key management 8,128,100.00 12,123,000.00
(5) Related-party financial services
1. Notes
The subsidiaries of the Company discount notes at the finance company for purchase and sale business, as follows:
Name of related party Ending balance Beginning balance Current interest expenditure
New Hope Finance Co., Ltd. 4,309,843,964.41 4,268,710,059.21 76,188,306.16
2. Deposits
Name of related party Ending balance Beginning balance Current interest revenue
New Hope Finance Co., Ltd. 4,626,514,816.61 9,524,997,209.01 71,505,235.66
3. Loans
Name of related party Ending balance Beginning balance Current interest expenditure
New Hope Finance Co., Ltd. 37,700,000.00 31,600,000.00 626,200.00
6. Receivables from and payables to related parties
(1) Receivables
Unit: Yuan
Ending balance Beginning balance
Item Related party
Book balance Bad debt provision Book balance Bad debt provision
Accounts Nanjing Heda
25,027,303.01 25,027,303.01 25,027,303.01 25,027,303.01
receivable Food Co., Ltd.
Beijing Porridge
Accounts
Jiahe Restaurant 4,700,126.89 75,926.84 8,529,539.81 126,092.81
receivable
Management Co.,
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Ltd.
Guangdong Hope
Accounts No.1 Equity
37,729,374.14 2,558,051.57 37,729,374.14 494,254.80
receivable Investment
Partnership (LP)
Sichuan Xinrong
Nutrition
Accounts Technology Co.,
3,745,998.25 49,072.57 2,420,239.65 31,705.13
receivable Ltd. and its
majority-owned
subsidiaries
Grass Green
Accounts Group Co., Ltd.
2,745,617.45 35,967.62 1,253,782.53 16,424.56
receivable and other majority-
owned subsidiaries
New Hope Dairy
Accounts Co., Ltd. and other
714,174.20 9,355.69
receivable majority-owned
subsidiaries
Yongchang New
Accounts Hope Xuelan
404,870.40 5,303.80
receivable Livestock Co.,
Ltd.
Shanghai Liuhe
Accounts
Qinqiang Food 871,401.54 11,415.36 762,618.29 9,990.29
receivable
Co., Ltd.
Accounts Anhui Xinqiao
7,071,667.39 92,638.84 654,812.24 8,578.04
receivable Down Co., Ltd.
New Hope
Property Service
Accounts
Group Co., Ltd. 0.00 0.00 453,110.30 5,935.75
receivable
and its majority-
owned subsidiaries
Beijing Meihao
Accounts
Meideling Food 281,122.01 3,682.71 336.42 4.41
receivable
Co., Ltd.
Xinzhi Huide
Mechanical
Accounts Technology Co.,
48,058,817.02 4,137,518.39 43,984,019.50 680,966.31
receivable Ltd. and its
majority-owned
subsidiaries
Other subsidiaries
Accounts controlled by New
314,579.96 4,121.01 834,107.72 10,926.86
receivable Hope Holding
Group Co., Ltd.
Shandong Hypor
Accounts
Liuhe Breeding 1,776,327.73 23,269.89
receivable
Co., Ltd.
New Hope
Chemical
Accounts Investment Co.,
114,210.00 1,496.15
receivable Ltd. and its
majority-owned
subsidiaries
Accounts Hainan Nongken
808,580.00 10,592.40
receivable New Hope
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Farming
Technology Co.,
Ltd.
Shandong
Gongrong New
Accounts
Hope Equity 144,245.10 1,889.61
receivable
Investment Fund
Partnership (LP)
Anhui Antai
Agricultural
Notes receivable 0.00 8,000,000.00
Development Co.,
Ltd.
Grass Green
Group Co., Ltd.
Notes receivable 0.00 3,992,486.45
and other majority-
owned subsidiaries
New Hope
Chemical
Investment Co.,
Notes receivable 615,755.35
Ltd. and its
majority-owned
subsidiaries
Taishan Jiaxin
Prepayments 74,800.00 74,800.00
Logistics Co., Ltd.
New Hope Finance
Prepayments 58,274,944.53 35,903,414.35
Co., Ltd.
Qingdao Big
Herdsman
Machinery Co.,
Prepayments 206,101.25 36,011.00
Ltd. and its
majority-owned
subsidiaries
Shanghai Liuhe
Prepayments Qinqiang Food 21,420.00 3,648.00
Co., Ltd.
Qingdao Fresh
Prepayments Life Technology 162,560.04 149,482.91
Service Co., Ltd.
New Hope
Property Service
Prepayments Group Co., Ltd. 11,160.00 15,000.00
and its majority-
owned subsidiaries
Xinzhi Huide
Mechanical
Technology Co.,
Prepayments 6,799,930.90 1,989,079.49
Ltd. and its
majority-owned
subsidiaries
New Hope Dairy
Co., Ltd. and other
Prepayments 0.00 584.00
majority-owned
subsidiaries
Other subsidiaries
controlled by New
Prepayments 0.00 21,946,893.52
Hope Holding
Group Co., Ltd.
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Sichuan New
Prepayments Hope Trade Co., 536,773,229.47
Ltd。
New Hope
Property Service
Other receivables Group Co., Ltd. 40,000.00 40,000.00 40,000.00 40,000.00
and its majority-
owned subsidiaries
New Hope Dairy
Co., Ltd. and other
Other receivables 50,000.00 6,745.00 50,000.00 6,745.00
majority-owned
subsidiaries
Beijing Meihao
Other receivables Meideling Food 35,000,000.00 1,767,500.00 35,000,000.00 1,767,500.00
Co., Ltd.
Grass Green
Group Co., Ltd.
Other receivables 120,000.00 41,048.00 120,000.00 16,188.00
and other majority-
owned subsidiaries
Anhui Xinqiao
Other receivables 20,000,000.00 2,698,000.00 20,000,000.00 1,010,000.00
Down Co., Ltd.
Guangdong Hope
No.1 Equity
Other receivables 25,300.00 3,042.55 15,300.00 1,219.97
Investment
Partnership (LP)
Zhanjiang
Other receivables Guangken Xinhao 235,000.00 31,701.50 235,000.00 11,867.50
Farming Co., Ltd.
Other subsidiaries
controlled by New
Other receivables 10,000.00 505.00 10,000.00 505.00
Hope Holding
Group Co., Ltd.
Shandong Hypor
Other receivables Liuhe Breeding 151,020.00 7,626.51
Co., Ltd.
Zhejiang Xinzhi
Other non-current Tanhe Digital
31,796,000.00 31,664,468.04
assets Technology Co.,
Ltd.
Qingdao Big
Herdsman
Other non-current Machinery Co.,
14,410,919.71 14,408,619.71
assets Ltd. and its
majority-owned
subsidiaries
Xinzhi Huide
Mechanical
Other non-current Technology Co.,
45,796,708.10 47,467,308.21
assets Ltd. and its
majority-owned
subsidiaries
Hangzhou
XingYuan
Other non-current Environmental
20,373,056.57 20,373,056.57
assets Protection
Equipment Co.,
Ltd.
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Sichuan Xingong
Shengfei
Other non-current
Construction 2,000,000.00
assets
Engineering Co.,
Ltd.
Xinzhi Huide
Mechanical
Dividends Technology Co.,
6,000,000.00 6,000,000.00
receivable Ltd. and its
majority-owned
subsidiaries
Other current New Hope Finance
98,491,604.44 46,581,708.34
assets Co., Ltd.
(2) Payables
Unit: Yuan
Item Related party Ending book balance Beginning book balance
Hebei Kinghey Sausage
Accounts payable 0.00 3,850.00
Casings Co., Ltd.
New Hope Property Service
Accounts payable Group Co., Ltd. and its 13,920.00 27,549.90
majority-owned subsidiaries
Qingdao Big Herdsman
Accounts payable Machinery Co., Ltd. and its 72,534,086.90 81,962,246.68
majority-owned subsidiaries
Beijing Porridge Jiahe
Accounts payable Restaurant Management Co., 959,365.01 519,769.68
Ltd.
Qingdao Fresh Life
Accounts payable 8,157,145.81 6,372,029.98
Technology Service Co., Ltd.
Chengdu Yunlizhi Technology
Accounts payable Co., Ltd. and its majority- 16,111,978.65 6,941,781.90
owned subsidiaries
Sichuan Xinrong Nutrition
Accounts payable Technology Co., Ltd. and its 4,839,642.82 17,221,672.11
majority-owned subsidiaries
Grass Green Group Co., Ltd.
Accounts payable and other majority-owned 4,821,210.76 5,954,698.35
subsidiaries
Shandong Hypor Liuhe
Accounts payable 13,215.00 43,015.00
Breeding Co., Ltd.
New Hope Dairy Co., Ltd.
Accounts payable and its majority-owned 0.00 1,198,771.20
subsidiaries
Hangzhou Zhongyi Eco-
Accounts payable Environmental Engineering 149,480,716.74 150,421,350.20
Co. Ltd.
Zhejiang Shuimei
Accounts payable Environmental Protection 0.00 5,836,800.00
Engineering Co., Ltd.
Hangzhou XingYuan
Accounts payable Environmental Protection 14,740,566.35 14,740,566.34
Equipment Co., Ltd.
Zhejiang Xinzhi Tanhe
Accounts payable 52,251,805.84 58,182,349.01
Digital Technology Co., Ltd.
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Xinzhi Huide Mechanical
Accounts payable Technology Co., Ltd. and its 32,773,947.72 61,006,383.00
majority-owned subsidiaries
Beijing Meihao Meideling
Accounts payable 23,039.53 1,146,163.94
Food Co., Ltd.
Other subsidiaries controlled
Accounts payable by New Hope Holding Group 6,116,262.29 200,650.00
Co., Ltd.
Anhui Xinqiao Down Co.,
Accounts payable 1,080,942.32
Ltd.
Yunnan Xinlong Mineral
Accounts payable 673,985.65
Feed Co., Ltd.
Sichuan New Hope Trade
Accounts payable 196,800.00
Co., Ltd。
Sichuan Chuanwazi Food
Accounts payable 15,600.00
Co., Ltd.
Chengdu Win Choice
Accounts payable 5,252.92
Technology Service Co., Ltd.
Beijing Jiexian Information
Accounts payable 1,762,876.31
Technology Co., Ltd.
Sichuan New Hope Trade
Notes payable 1,317,358,514.96
Co., Ltd。
Beijing Jiexian Information
Contract liabilities 4,560.81
Technology Co., Ltd.
Hebei Kinghey Sausage
Contract liabilities 591,840.01 303,815.45
Casings Co., Ltd.
Sichuan Xinrong Nutrition
Contract liabilities Technology Co., Ltd. and its 114,056.98 64,612.16
majority-owned subsidiaries
Grass Green Group Co., Ltd.
Contract liabilities and other majority-owned 23,886.60 8,246.86
subsidiaries
Anhui Antai Agricultural
Contract liabilities 29,290.00 110,000.00
Development Co., Ltd.
Shanghai Liuhe Qinqiang
Contract liabilities 5,792,091.85 4,579,869.01
Food Co., Ltd.
Anhui Xinhua Ducks Co.,
Contract liabilities 61,350.00 61,350.00
Ltd.
Beijing Meihao Meideling
Contract liabilities 440.03 550.03
Food Co., Ltd.
Shenyang New Hope New
Contract liabilities Agricultural Industry Fund 5,316,026.97 3,418,806.04
Partnership (LP)
Shandong Gongrong New
Contract liabilities Hope Equity Investment Fund 0.00 5,737,809.20
Partnership (LP)
Shandong Hypor Liuhe
Contract liabilities 0.00 180,124.66
Breeding Co., Ltd.
Beijing Porridge Jiahe
Contract liabilities Restaurant Management Co., 0.00 320,000.00
Ltd.
Other subsidiaries controlled
Contract liabilities by New Hope Holding Group 9,066,231.49 783,537.52
Co., Ltd.
New Hope Property Service
Contract liabilities Group Co., Ltd. and its 0.00 103.88
majority-owned subsidiaries
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Contract liabilities New Hope Finance Co., Ltd. 788.00
New Hope Chemical
Contract liabilities Investment Co., Ltd. and its 73,200.00
majority-owned subsidiaries
New Hope Dairy Co., Ltd.
Contract liabilities and other majority-owned 22,844.00
subsidiaries
Chengdu Win Choice
Contract liabilities 184.12
Technology Service Co., Ltd.
Xinzhi Huide Mechanical
Contract liabilities Technology Co., Ltd. and its 0.73
majority-owned subsidiaries
Shanghai Liuhe Qinqiang
Other payables 515,000.00 500,000.00
Food Co., Ltd.
Qingdao Big Herdsman
Other payables Machinery Co., Ltd. and its 497,261.46 497,261.46
majority-owned subsidiaries
Anhui Xinhua Ducks Co.,
Other payables 9,071,000.00 9,071,000.00
Ltd.
Beijing Meihao Meideling
Other payables 1,462.93 57,118.86
Food Co., Ltd.
New Hope Dairy Co., Ltd.
Other payables and its majority-owned 61,065.00 18,525.00
subsidiaries
Yan’an Xinyongxiang
Other payables 1,500,000.00 1,500,000.00
Technology Co., Ltd.
NHE (Beijing) Technology
Other payables 609,910.31 609,910.31
Co., Ltd.
Qingdao Fresh Life
Other payables 1,228,703.97 978,603.97
Technology Service Co., Ltd.
Chengdu Yunlizhi Technology
Other payables Co., Ltd. and its majority- 1,530,412.66 3,088,061.43
owned subsidiaries
Grass Green Group Co., Ltd.
Other payables and other majority-owned 421,345.71 761,350.00
subsidiaries
Hangzhou Zhongyi Eco-
Other payables Environmental Engineering 112,565.00 100,000.00
Co. Ltd.
Zhejiang Shuimei
Other payables Environmental Protection 200,000.00
Engineering Co., Ltd.
Hangzhou XingYuan
Other payables Environmental Protection 0.00 30,000.00
Equipment Co., Ltd.
Shandong Hypor Liuhe
Other payables 100,000.00 100,000.00
Breeding Co., Ltd.
Xinzhi Huide Mechanical
Other payables Technology Co., Ltd. and its 220,000.00 220,000.00
majority-owned subsidiaries
Other subsidiaries controlled
Other payables by New Hope Holding Group 150,898,086.46 144,144,881.46
Co., Ltd.
Sichuan Chuanwazi Food
Other payables 20,000.00
Co., Ltd.
Zhejiang Xinzhi Tanhe
Other payables 50,000.00
Digital Technology Co., Ltd.
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Shandong Gongrong New
Dividends payable Hope Equity Investment Fund 44,597,222.23
Partnership (LP)
XIII. Share-based payments
1. Overview of share-based payments
applicable □not applicable
Unit: Yuan
Total amount of various equity instruments of the Company
0.00
granted in the current period
Total amount of various equity instruments of the Company
0.00
exercised in the current period
Total amount of various equity instruments of the Company
0.00
lapsed in the current period
The number of stock options issued and outstanding of the
Range of exercise price and remaining term of contract for Company is 2.0475 million shares, and the exercise price is
stock options of the Company issued and outstanding at the end 16.47 Yuan/share, with the remaining stock options exercisable
of period from the grant date of July 18, 2019 to the last trading day
within 36 months thereafter.
The number of restricted stocks issued and outstanding of the
Range of exercise prices and remaining terms of contract for Company is 0.8775 million shares, and the grant price is 8.16
other equity instruments of the Company issued and Yuan/share, with the remaining restricted stocks to be lifted in
outstanding at the end of period two phases: from the grant date of July 18, 2019 to the last
trading day within 36 months and 48 months thereafter.
Other remarks
(1) Decision-making procedure performed under the stock incentive plan:
On May 8, 2019, the Company held the 44th meeting of its 7th board of directors and the 15th meeting of its 7th board of
supervisors, where the Proposal regarding 2019 Restricted Stock and Stock Option Incentive Plan (Draft) and its Summary of New
Hope Liuhe Co., Ltd., the Proposal regarding Measures for Appraisal Management of the 2019 Restricted Stock and Stock Option
Incentive Plan of New Hope Liuhe Co., Ltd. and the Proposal regarding Requesting General Meeting to Authorize Board of
Directors to Handle Matters Related to Stock Incentive were deliberated and passed.
On June 6, 2019, the Company held the first extraordinary general meeting of 2019, where the aforesaid proposals were
deliberated and passed.
On July 4, 2019, the Company held the 2nd meeting of its 8th board of directors and the 2nd meeting of its 8th board of
supervisors, where the Proposal regarding Grant of Restricted Stocks and Stock Options to Incentive Objects was deliberated a nd
passed.
(2) The source of stocks, incentive objects and the date of first grant under the stock incentive plan
The source of stocks for the present stock incentive plan is A ordinary shares of the Company repurchased from the
secondary market; the total number of incentive objects who were first granted stock incentive under this stock incentive plan was
24, including senior executives of the Company and its branches and subsidiaries and other core managers/technicians that the
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board of directors deemed to have direct effects on the Company’s business performance and future development; the date of first
grant of restricted stock and stock options was July 18, 2019.
(3) Stock incentives meet conditions for exercise:
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 approving the Proposal regarding the First Exercise Period /Exercise in Lifted Period/Satisfaction of
Conditions for Lifting of Sales Restrictions under 2019 Stock Option and Restricted Stock Incentive Plan, whereby the Company
granted restricted stocks to a total of 23 incentive objects eligible for lifting of sales restrictions in the first lifted period under this
incentive plan, with 877,500 shares of restricted stocks can be released; a total of 23 incentive objects eligible for exercise in the
first exercise period were granted 4,095,000 exercisable stock options.
On August 9, 2021, the Company held the 41st meeting of its 8th board of directors and the 21st meeting of its 8th board of
supervisors, deliberating and passing the Proposal regarding the Second Exercise Period /Exercise in Lifted Period/Satisfaction of
Conditions for Lifting of Sales Restrictions under 2019 Stock Option and Restricted Stock Incentive Plan, whereby the Company
granted restricted stocks to a total of 15 incentive objects eligible for lifting of sales restrictions in the second lifted period under
this incentive plan, with 438,750 shares of restricted stocks that can be released; a total of 15 incentive objects eligible for
exercise in the second exercise period were granted 2,047,500 exercisable stock options.
(4) Cancellation of part of stock options and repurchase of part of restricted stocks for cancellation:
The 19th meeting of its 8th board of directors and the 1st extraordinary general meeting 2020 of the Company deliberated and
passed the Proposal regarding Cancellation of Part of Stock Options and Repurchase of the Canceled Part of Restricted Stocks,
whereby given the fact that 1 incentive object’s performance appraisal results are “subject to improvement” in the first
exercise/lifted period under the Company’s 2019 restricted stock and stock option incentive plan, meeting 50% of the conditions
for exercise/lifting in the current period; 1 incentive object had performance appraisal results of “nonconforming” and thus may
not exercise the current stock options, which were canceled by the Company, while the current restricted stocks may not be
released for sale and were repurchased by the Company for cancellation. The Company canceled a total of 105,000 stock options
granted but not yet exercised, repurchased for cancellation 22,500 shares of restricted stocks granted but not yet released for sale,
and has completed cancellation of such part of stock options and restricted stocks as of the end of this reporting period.
The 28th meeting of its 8th board of directors and the 1st extraordinary general meeting 2021 of the Company deliberated and
passed the Proposal regarding Cancellation of Part of Stock Options and Repurchase of the Canceled Part of Restricted Stocks,
whereby given the fact that 7 out of original incentive objects left office, the restricted stocks granted to the m but not yet released
for sale may not be released for sale and shall be repurchased by the Company for cancellation according to related provisions of
the 2019 Restricted Stock and Stock Option Incentive Plan (Draft); stock options granted but not yet exercised may not be
exercised but shall be canceled by the Company. The Company canceled a total of 2,835,000 stock options granted but not yet
exercised, repurchased for cancellation 1,215,000 shares of restricted stocks granted but not yet released for sa le, and has
completed cancellation of such part of stock options and restricted stocks as of the end of this reporting period.
The 41th meeting of its 8th board of directors of the Company deliberated and passed the Proposal regarding Cancellation of
Part of Stock Options and Repurchase of the Canceled Part of Restricted Stocks, whereby given the fact that 2 out of origina l
incentive objects left office, the restricted stocks granted to them but not yet released for sale may not be released for sa le and shall
be repurchased by the Company for cancellation according to related provisions of the 2019 Restricted Stock and Stock Option
Incentive Plan (Draft); stock options granted but not yet exercised may not be exercised but shall be canceled by the Company;
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moreover, according to the Administrative Measures for Equity Incentives of Listed Companies, upon the end of each exercise
period of stock options, current stock options not exercised by incentive objects shall cease to be exercised and shall be ca nceled
by listed companies in a timely manner. The Company canceled a total of 1,246,445 stock options granted but not yet exercised
this time, repurchased for cancellation 168,750 shares of restricted stocks granted but not yet released for sale.
2. Share-based payments settled in equities
applicable □not applicable
Unit: Yuan
Determination of fair value of equity instruments at the grant The fair value of equity instruments at the grant date was
date determined based on Black-Scholes pricing model.
Estimated based on the achievement of performance conditions
of the Company and personal performance appraisal results, of
Basis of determination of the number of vested equity
which
instruments
the Company’s performance conditions include business
revenue and operating net profit growth indicators.
Causes of significant difference between the current estimates
None
and prior-period estimates
Accumulated amount of share-based payment settled in equities
43,188,941.42
included in capital reserve
Total expenses recognized for share-based payment settled in
986,273.44
equities in the current period
Other remarks
3. Share-based payments settled in cash
□applicable not applicable
4. Modifications to and termination of share-based payment
None
XIV. Commitments and contingencies
1. Material commitments
Material commitments existing at the balance sheet date
2. Contingencies
(1) Material contingencies existing at the balance sheet date
The Company had no material contingencies existing at the balance sheet date
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(2) Specify any material contingencies that the Company is not required to disclose
The Company had no material contingencies to disclose.
XV. Events after the balance sheet date
1. Material non-adjustment events
Unit: Yuan
Amount of effect on financial Reasons for inability to
Item Content
position and business results estimate the amount of effect
At the 49th meeting of the 8th
board of directors of the
Company, the Company
proposed to issue shares of no
more than 4.5 billion, or no
more than 367,647,058 shares
to a specific object at the
price of 12.24 Yuan per share.
Recently,the Company
Issuance of stocks and bonds The issue date is uncertain.
received the Reply on
Approval of the Non-public
Issuing of Stock by New
Hope Liuhe Co., Ltd. (CSRC
Approval [2022] No.1747)
issued by CSRC, approving
the Company's non-public
issuance of no more than
367,647,058 new shares.
2. Profit distribution
Unit: Yuan
3. Sales return
4. Remarks on other events after the balance sheet date
XVI. Other important matters
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1. Segment information
(1) Basis of determination of reporting segments and their accounting policies
The Company determines operating segments based on internal organizational structure, management requirements and interna l
reporting policies, which refer to the components that meet all of the following conditions:
1) Such components can generate revenue and incur expenses in day-to-day activities;
2) The management can evaluate the business results of such components on a regular basis to determine allocation of resource s to
them and evaluate their performance;
3) The financial condition, business results, cash flow and other related accounting information about such components are
available. The Company classifies its segment information by region and industry.
(2) Financial information of reporting segments
Unit: Yuan
Inter-segment
Item Overseas Domestic Total Total
offset
Business revenue 7,803,392,389.02 54,526,138,687.62 62,329,531,076.64
Operating costs 7,174,009,328.26 54,889,544,846.11 62,063,554,174.37
332,933,176,173.5 349,707,722,365.5 214,499,003,823.0 135,208,718,542.4
Total assets 16,774,546,191.91
9 0 2 8
254,991,206,877.7 266,592,856,774.3 169,928,890,015.2
Total liabilities 11,601,649,896.56 96,663,966,759.05
4 0 5
(3) Specify the reason why the Company has no reporting segments or cannot disclose total assets or total
liabilities of each reporting segment
No other matters to be disclosed.
(4) Other remarks
Segment information determined to be reported based on industry distribution
Item Business revenue Operating costs Total assets Total liabilities
Feeds 36,037,156,488.71 34,140,632,738.11 36,286,983,440.11 29,790,667,964.76
Poultry business 8,289,654,758.78 8,060,747,223.18 10,226,447,584.18 8,988,989,635.63
Pig business 7,764,687,577.91 9,944,668,304.13 101,551,175,375.22 91,784,196,671.55
Food 4,913,494,290.92 4,808,585,139.74 6,094,701,254.29 3,674,221,436.19
Commerce and trade 4,951,456,818.63 4,833,522,281.37 15,407,731,505.22 17,260,509,433.83
Others 373,081,141.69 275,398,487.84 180,140,683,206.48 115,094,271,632.34
Total 62,329,531,076.64 62,063,554,174.37 349,707,722,365.50 266,592,856,774.30
Minus: internal offset 214,499,003,823.02 169,928,890,015.25
Total after offset 62,329,531,076.64 62,063,554,174.37 135,208,718,542.48 96,663,966,759.05
431
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2. Other important transactions and events that affect the investor decisions
No other matters to be disclosed.
3. Others
(1) As a lessee
Item Current amount
Interest expense on lease liabilities 147,395,911.62
Short-term leases and low-value leases treated in a simplified manner 83,946,085.74
Variable lease payments not included in measurement of lease liabilities -
Revenue acquired from subletting of right-of-use assets 4,300,094.42
Total cash outflows related to lease 471,007,112.98
Lease assets leased by the Company include land use right, pig farms, houses and buildings, machinery and equipment and
transport equipment, etc; the lease term of land use right is generally 8 to 30 years, that of pig farms generally 5 to 20 ye ars, that of
houses and buildings generally 5 to 30 years, that of machinery and equipment generally 5 to 7 years, and that of transport
equipment generally 3 to 4 years. Some of lease contracts contain renewal option, and the Company has reasonably estimated
exercise of renewal options when measuring lease liabilities and determining lease terms.
(2) As a lessor
Item Current amount
Income from lease 36,890,488.81
Wherein: revenue related to variable lease payments not included in lease proceeds
The Company leased out part of the houses and buildings, factory buildings and equipment, with lease term ranging from 3
years to 10 years. The Company classifies such leases as operating leases, as such leases don’t substantially transfer almost all risk
and reward related to asset ownership.
The undiscounted lease proceeds to be received by the Company after the balance sheet date are as follows:
Item Amount
Less than 1 year (inclusive) 45,081,382.16
1-2 years 38,816,228.88
2-3 years 35,348,106.43
3-4 years 33,235,066.51
4-5 years 15,390,771.53
Over 5 years 22,382,782.73
Total 190,254,338.24
The Company has no external leases classified as operating leases.
432
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XVII. Notes to key items of financial statements of the parent company
1. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: Yuan
Ending balance Beginning balance
Book balance Bad debt provision Book balance Bad debt provision
Categor
y Proporti Book Proporti Book
Proporti value Proporti value
Amount Amount on Amount Amount on
on on
accrued accrued
Wher
ein:
Account
s
receivab
le with
provisio 78,408.0 73,091.9 317,612. 313,451.
100.00% 5,316.06 6.78% 100.00% 4,160.72 1.31%
n for bad 0 4 00 28
debts on
a
portfolio
basis
Wher
ein:
78,408.0 73,091.9 317,612. 313,451.
Total 100.00% 5,316.06 6.78% 100.00% 4,160.72 1.31%
0 4 00 28
Bad debt provision accrued by portfolio:
Unit: Yuan
Ending balance
Name
Book balance Bad debt provision Proportion accrued
Relatively lower risk 78,408.00 5,316.06 6.78%
Total 78,408.00 5,316.06
Remarks on basis for determination of this portfolio:
For accounts receivable classified as risk portfolio, 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.
Accounts receivable of domestic companies
No. Risk analysis Expected credit loss rate
1 Low risk 1.31%
2 Relatively lower risk 6.78%
3 High risk 100.00%
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
433
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Unit: Yuan
Age Ending balance
Less than 1 year (inclusive) 78,408.00
Wherein: 7-12 months 78,408.00
Total 78,408.00
(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
4,160.72 1,155.34 5,316.06
account
receivables
Total 4,160.72 1,155.34 5,316.06
(3) Top 5 accounts receivable in ending balance by debtor
Unit: Yuan
Percentage in the total ending
Ending balance of accounts Ending balance of bad debt
Entity Name balance of accounts
receivable provision
receivable
Zintech Network Technology
78,408.00 100.00% 5,316.06
Co., Ltd.
Total 78,408.00 100.00%
2. Other receivables
Unit: Yuan
Item Ending balance Beginning balance
Dividends receivable 477,722,349.82 477,722,349.82
Other receivables 71,715,196,979.03 69,300,507,563.67
Total 72,192,919,328.85 69,778,229,913.49
(1) Dividends receivable
(1) Dividends receivable by category
Unit: Yuan
Project (or invested entity) Ending balance Beginning balance
Hainan New Hope Agriculture Co., Ltd. 15,206,887.34 15,206,887.34
Guangxi New Hope Liuhe Breeding Co.,
18,782,912.32 18,782,912.32
Ltd.
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Yongzhou New Hope Liuhe Feed Co.,
37,995,309.36 37,995,309.36
Ltd.
Yunnan New Hope Liuhe Breeding Co.,
70,996,006.97 70,996,006.97
Ltd.
GuangYuan New Hope Liuhe Farming
34,741,233.83 34,741,233.83
Technology Co., Ltd.
Beijing New Hope Liuhe Biotechnology
300,000,000.00 300,000,000.00
Industry Group Co., Ltd
Total 477,722,349.82 477,722,349.82
2) Bad debt provision accrued
□applicable not applicable
(2) Other receivables
1) Other receivables categorized by nature of amount
Unit: Yuan
Nature of amount Ending book balance Beginning book balance
Receivables within the scope of
71,645,928,195.09 69,232,262,128.79
consolidated statements
Petty cash 1,336,575.73 1,347,693.04
Margins and deposits 38,307,394.89 34,109,084.96
Temporary borrowings 39,102,656.23 39,093,048.53
Others 1,125,000.00 1,125,000.00
Total 71,725,799,821.94 69,307,936,955.32
2) Bad debt provision accrued
Unit: Yuan
Phase 1 Phase 2 Phase 3
Expected credit loss
Bad debt provision Expected credit loss Total
Expected credit loss in over the entire duration
over the entire duration
the coming 12 months (with credit
(no credit impairment)
impairment)
Balance as of January
4,315,524.71 3,113,866.94 7,429,391.65
01, 2022
Balance as of January
1, 2022
in the current period
--transferred to phase 3 -1,128,903.46 1,128,903.46
Accrued in the current
3,207,611.26 3,207,611.26
period
Current write-off 34,160.00 34,160.00
Balance as of June 30,
6,394,232.51 4,208,610.40 10,602,842.91
2022
Changes in book balance with respect to which current changes in the loss provision are significant
□applicable not applicable
Disclosure by age
435
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Unit: Yuan
Age Ending balance
Less than 1 year (inclusive) 71,694,416,325.71
1-2 years 26,049,826.47
2-3 years 1,125,059.36
Over 3 years 4,208,610.40
3-4 years 1,196,606.37
4-5 years 552,523.89
Over 5 years 2,459,480.14
Total 71,725,799,821.94
3) 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
7,429,391.65 3,207,611.26 34,160.00 10,602,842.91
other
receivables
Total 7,429,391.65 3,207,611.26 34,160.00 10,602,842.91
4) Other receivables actually charged off in the current period
Unit: Yuan
Item Amount charged off
Other receivables actually charged off 34,160.00
Of which, significant charge-off of other receivables:
Unit: Yuan
Whether the
Charge-off amounts were
Nature of other Amount charged Cause of charge-
Entity Name procedure incurred by
receivables off off
performed related-party
transaction
Long time
overdue,
Zhang Yongwei Current accounts 34,160.00 Note No
recognized as
difficult to recover
Total 34,160.00
Remarks on other receivables charged off:
436
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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; individua l
charged-off amount of ≥ 0.5 million Yuan is submitted to the chairman for approval.
5) Top 5 other receivables in ending balance by debtor
Unit: Yuan
Percentage in the
total ending Ending balance of
Entity Name Nature of amount Ending balance Age
balance of other bad debt provision
receivables
Tongliao Xinhao Internal current
1,324,331,000.00 Less than 1 year 1.85%
Farming Co., Ltd. accounts
Shuozhou Xinhao Internal current
882,135,000.00 Less than 1 year 1.23%
Farming Co., Ltd. accounts
Huanghua Xinhao
Internal current
Technology Co., 852,933,611.99 Less than 1 year 1.19%
accounts
Ltd.
Gansu New Hope
Internal current
Liuhe Farming 701,071,000.00 Less than 1 year 0.98%
accounts
Co., Ltd.
Guigang Xinliu
Farming Internal current
411,055,700.00 Less than 1 year 0.57%
Technology Co., accounts
Ltd.
Total 4,171,526,311.99 5.82%
3. Long-term equity investment
Unit: Yuan
Ending balance Beginning balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment in 13,046,551,895 13,046,551,895 13,046,551,895 13,046,551,895
subsidiaries .01 .01 .01 .01
Investments in
1,133,111,319.3 1,133,111,319.3
affiliates and 685,917,212.76 685,917,212.76
3 3
joint ventures
14,179,663,214 14,179,663,214 13,732,469,107 13,732,469,107
Total
.34 .34 .77 .77
(1) Investment in subsidiaries
Unit: Yuan
Beginning Current increase or decrease Ending
Ending
balance Impairment balance of
Invested entity Additional Reduced balance
(book provision Others impairment
investment investment (book value)
value) accrued provision
Hainan New
10,784,79 10,784,799.1
Hope
9.18 8
Agriculture
437
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Co., Ltd.
Mianyang New
Hope Liuhe
20,000,00 20,000,000.0
Farming
0.00 0
Technology
Co., Ltd.
Guanghan
12,074,68 12,074,682.4
Guoxiong Feed
2.47 7
Co., Ltd.
Kunming New
Hope
9,966,510.
Agricultural 9,966,510.03
03
Technology
Co., Ltd.
Zunyi Jiahao 6,995,416.
6,995,416.81
Feed Co., Ltd. 81
Qujing
3,943,229.
Guoxiong Feed 3,943,229.08
08
Co., Ltd.
Beijing New
Hope Farming 7,500,000.
7,500,000.00
Technology 00
Co., Ltd.
Hebei New
20,000,00 20,000,000.0
Hope Feed Co.,
0.00 0
Ltd.
Taizhou New
Hope 10,000,00 10,000,000.0
Agriculture 0.00 0
Co., Ltd.
Lhasa New
22,000,00 22,000,000.0
Hope Industrial
0.00 0
Co., Ltd.
Mangshi New
Hope Farming 10,000,00 10,000,000.0
Technology 0.00 0
Co., Ltd.
Kunming New
Hope Animal 20,000,00 20,000,000.0
Nutritious Food 0.00 0
Co., Ltd.
Emeishan New
10,000,00 10,000,000.0
Hope Liuhe
0.00 0
Feed Co., Ltd.
Wulong New
10,000,00 10,000,000.0
Hope Liuhe
0.00 0
Feed Co., Ltd.
Baoji New
20,000,00 20,000,000.0
Hope Farming
0.00 0
Co., Ltd.
SanYuan New
20,000,00 20,000,000.0
Hope Feed Co.,
0.00 0
Ltd.
Wuzhou New
10,000,00 10,000,000.0
Hope Liuhe
0.00 0
Feed Co., Ltd.
Guangxi New 10,000,00 10,000,000.0
438
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Hope Liuhe 0.00 0
Breeding Co.,
Ltd.
Yongzhou New
15,000,00 15,000,000.0
Hope Liuhe
0.00 0
Feed Co., Ltd.
Huanggang
New Hope
20,000,00 20,000,000.0
Feed
0.00 0
Technology
Co., Ltd.
Huaihua New
20,000,00 20,000,000.0
Hope Liuhe
0.00 0
Feed Co., Ltd.
Yingtan New
20,000,00 20,000,000.0
Hope Feed Co.,
0.00 0
Ltd.
Ningxia New
Hope Ruminant
20,000,00 20,000,000.0
Animal
0.00 0
Nutritious Food
Co., Ltd.
Xiangyang
New Hope 20,000,00 20,000,000.0
Liuhe Feed Co., 0.00 0
Ltd.
Zunyi New
Hope Liuhe
10,000,00 10,000,000.0
Agricultural
0.00 0
Technology
Co., Ltd.
Guangzhou
48,800,00 48,800,000.0
Liuhe Feed Co.,
0.00 0
Ltd.
Sichuan Xinle
4,023,039.
Plastics Co., 4,023,039.62
62
Ltd.
Jiangsu
Tiancheng
40,800,00 40,800,000.0
Healthcare
0.00 0
Products Co.,
Ltd.
New Hope
Liuhe 503,191,9 503,191,958.
Investment Co., 58.85 85
Ltd.
New Hope
Liuhu Food 100,000,0 100,000,000.
Holdings Co., 00.00 00
Ltd.
Hebei New
100,000,0 100,000,000.
Hope Farming
00.00 00
Co., Ltd.
Yunnan New
Hope Liuhe 2,000,000.
2,000,000.00
Breeding Co., 00
Ltd.
439
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Tibet Linzhi
New Hope 12,081,00 12,081,000.0
Liuhe Breeding 0.00 0
Co., Ltd.
Chengdu
Fenglan 50,713,65 50,713,650.0
Technology 0.00 0
Co., Ltd.
GuangYuan
New Hope
3,000,000.
Liuhe Farming 3,000,000.00
00
Technology
Co., Ltd.
Tianjin
Dingcheng
100,000,0 100,000,000.
Zhizi
00.00 00
Investment Co.,
Ltd.
Golden Oak
Investment
100,000,0 100,000,000.
Holdings
00.00 00
(Tianjin) Co.,
Ltd.
Yangling Besun
Agricultural 1,736,036, 1,736,036,11
Industry Group 110.75 0.75
Co., Ltd.
Chongqing
Tongliang New
Hope Liuhe 3,000,000.
3,000,000.00
Farming 00
Technology
Co., Ltd.
Qingdao
Xinhang
50,000,00 50,000,000.0
Engineering
0.00 0
Management
Co., Ltd.
Qingdao
Feidake Food 2,100,000.
2,100,000.00
Technology 00
Co., Ltd.
Beijing New
Hope Liuhe
502,678,1 502,678,173.
Biotechnology
73.17 17
Industry Group
Co., Ltd
Santai New
Hope Farming
30,000,00 30,000,000.0
Financing
0.00 0
Guarantee Co.,
Ltd.
New Hope
1,049,702, 1,049,702,60
Singapore Pte.
602.80 2.80
Ltd.
New Hope 94,167,69 94,167,694.5
International 4.50 0
440
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Holdings (Pte.)
Ltd.
Sichuan New
Hope Liuhe 1,052,335, 1,052,335,89
Farming Co., 894.98 4.98
Ltd
Shandong New
5,963,295, 5,963,295,80
Hope Liuhe
809.07 9.07
Group Co., Ltd.
New Hope
481,111,32 481,111,323.
Liuhe Feed Co.,
3.70 70
Ltd.
Sichuan New
Hope Liuhe
18,000,00 18,000,000.0
Technological
0.00 0
Innovation Co.,
Ltd.
Sichuan New
Hope Animal
500,000,0 500,000,000.
Nutrition
00.00 00
Technology
Co., Ltd.
Qingdao Xinmu
Zhihe 11,200,000 11,200,000.0
Technology .00 0
Co., Ltd.
Xintai New
4,800,000.
Hope Feed Co., 4,800,000.00
00
Ltd.
Guangdong
Jiahao
50,000,00 50,000,000.0
Agricultural
0.00 0
Products Co.,
Ltd.
Tianjin
Yunxiang
Enterprise
75,250,00 75,250,000.0
Management
0.00 0
Consulting
Partnership
(LP)
13,046,55 13,046,551,8
Total
1,895.01 95.01
(2) Investments in affiliates and joint ventures
Unit: Yuan
Current increase or decrease
Profit Cash Ending
Beginni Adjust balance
or loss dividen Ending
ng ment Impair of
Investe Additio Reduce on ds or balance
balance for Other ment impair
d entity nal d investm profits (book
(book other equity provisi Others ment
investm investm ent declare value)
value) compre changes on provisi
ent ent recogni d for
hensive accrued on
zed distribu
income
using tion
441
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the
equity
method
I. Joint ventures
Beijing
Meihao
Meideli -
27,662, 12,177,
ng 15,485,
705.47 565.71
Food 139.76
Co.,
Ltd.
-
Subtota 27,662, 12,177,
15,485,
l 705.47 565.71
139.76
II. Affiliates
New
Hope 1,120,9
658,254 680,000 20,670, 9,101.7 238,000
Finance 33,753.
,507.29 ,000.00 144.62 1 ,000.00
Co., 62
Ltd.
1,120,9
Subtota 658,254 680,000 20,670, 9,101.7 238,000
33,753.
l ,507.29 ,000.00 144.62 1 ,000.00
62
1,133,1
685,917 680,000 5,185,0 9,101.7 238,000
Total 11,319.
,212.76 ,000.00 04.86 1 ,000.00
33
4. Business revenue and operating costs
Unit: Yuan
Current amount Amount of the previous period
Item
Revenue Cost Revenue Cost
Main business 368,336,925.09 352,875,726.01 468,983,712.98 453,570,834.33
Other businesses 14,412,549.84 28,571,862.62 163,686.75
Total 382,749,474.93 352,875,726.01 497,555,575.60 453,734,521.08
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 20,008,387.61 Yuan, of which 20,008,387.61 Yuan is expected to be recognized in 2021, Yuan is
expected to be recognized in , and Yuan is expected to be recognized in .
Other remarks:
442
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5. Investment income
Unit: Yuan
Item Current amount Amount of the previous period
Income on long-term equity investments
518,373,420.79 826,261,849.65
accounted for under the cost method
Income on long-term equity investments
5,185,004.86 12,876,319.94
accounted for under the equity method
Total 523,558,425.65 839,138,169.59
XVIII. Additional information
1. Detailed statement of current non-recurring profits and losses
applicable □not applicable
Unit: Yuan
Item Amount Remarks
Gain or loss on disposal of non-current
-620,263,945.46
assets
Government subsidies included in
current profit or loss (excluding
government subsidies which are closely
related to the business operations of the
98,828,011.11
Company and consistently granted
according to certain standard quota or
ration in compliance with national
policies)
Profit or loss from change in fair value of
trading financial assets and trading
financial liabilities held, and investment
income from disposal of held-for-trading
financial assets, held-for-trading 26,249,584.31
financial liabilities and available-for-sale
financial assets, except for effective
hedging transactions related to normal
business operations of the Company
Reversal of impairment provision for
receivables subject to separate 4,850,917.74
impairment test
Other non-business revenue and
expenditure other than those described -83,644,608.28
above
Minus: effect of income tax 12,916,715.65
Effect of minority interest -127,098,476.85
Total -459,798,279.38 --
443
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Details of other profit or loss items that conform to the definition of non-recurring profit or loss:
□applicable not applicable
The Company has no other profit or loss items that conform to the definition of non-recurring profit or loss.
Description of non-recurring profit or loss items enumerated in the Explanatory Announcement No. 1 on Information Disclosure
for Companies Offering their Securities to the Public– Non-recurring Profit or Loss classified as recurring profit or loss items
□applicable not applicable
2. Return on equity and earnings per share
Earnings per share
Profits during the reporting
Weighted average ROE Basic earnings per share Diluted earnings per share
period
(Yuan/share) (Yuan/share)
Net profits attributable to
ordinary shareholders of the -15.37% -0.93 -0.93
Company
Net profits attributable to
ordinary shareholders of the
-13.59% -0.83 -0.83
Company after deduction of
non-recurring profit and loss
3. Accounting data difference under domestic and foreign accounting standards
(1) Difference in net profits and net assets in financial reports disclosed under both international
accounting standards and Chinese accounting standards
□applicable not applicable
(2) Difference in net profits and net assets in financial reports disclosed under both overseas accounting
standards and Chinese accounting standards
□applicable not applicable
(3) Remarks on the reasons for accounting data difference under domestic and overseas accounting
standards, and where difference adjustments have been made to the data audited by an overseas audit
agency, specify the name of such overseas agency
4. Others
New Hope Liuhe Co., Ltd.
Legal Representative: Liu Chang
August 31, 2022
444