New Hope Liuhe Co., Ltd.

New Hope Liuhe Co., Ltd. is a prominent Chinese company listed on the Shenzhen Stock Exchange since 1998. It operates primarily in the manufacturing sector, focusing on agricultural and sideline products processing. The company is engaged in two main business areas: feed production and swine farming and slaughtering. New Hope Liuhe produces a variety of feed products, including premixed, concentrated, and compound feeds for various livestock types, while also managing its own pig farming operations. The company's feed business serves both internal and external markets, supplying large farms and feed enterprises. In the swine farming and slaughtering segment, New Hope Liuhe has developed a dual-system breeding structure tailored to regional demands and has implemented biosecurity measures to enhance operational stability. The company employs a cooperative farming model alongside self-operated farming, with a focus on optimizing costs and improving profitability. New Hope Liuhe's strategic initiatives aim to strengthen its market position and enhance its competitiveness in the agricultural sector.

In 2024, China's agriculture and livestock sector gradually emerged from its downturn, entering a phase of moderate recovery. While consumer demand remained relatively stable, the supply side saw a sustained decline in the breeding sow inventory since the previous year, which eventually led to a continued reduction in market hog supply. This drove a significant rise in hog prices starting in Q2. Although prices retreated from their peak in August, the year-end decline was limited, resulting in a notably higher annual average price compared to 2023—creating favorable conditions for profitability improvements across the industry. During the reporting period, the company focused on its two core segments—feed business and swine farming & slaughtering—capitalizing on the industry's recovery. For its feed business, it strengthened domestic competitiveness while actively expanding into overseas markets to increase its share in key regions. In swine farming, the company implemented biosecurity upgrades at production sites, rigorously optimized costs, and enhanced profitability. Alongside operational improvements, the company pursued strategic partnerships, optimized idle assets, secured flexible multi-channel financing, strengthened capital management, and refined its organizational structure. Through these efforts, the company delivered stronger performance in 2024, achieving quarterly profitability in the last three quarters and a substantial year-on-year profit increase. Financial Highlights: Revenue: RMB 103.063 billion Net profit attributable to shareholders: RMB 474 million, up RMB 224 million (90.05% YoY) Feed Business In 2024, the continued reduction in hog inventories pressured domestic swine feed sales, but lower raw material costs helped improve production efficiency. The rebound in hog prices also boosted profitability in livestock farming, supporting a recovery in feed margins. The company implemented strategic upgrades in feed operations, enhancing raw material procurement, formula R&D, and sales transformation, ensuring stability during the industry's downturn and laying a foundation for future growth. Key Feed Metrics (2024): Total feed sales: 25.96 million tons (including external sales of 21.21 million tons) Poultry feed: 14.96 million tons Swine feed: 8.67 million tons (external sales: 4.22 million tons) Aquafeed: 1.69 million tons Ruminant feed: 440,000 tons Feed segment revenue: RMB 68.698 billion Swine Farming & Slaughtering Business Swine prices followed an "inverted-V" trend in 2024: weak in Q1, rising through Q2, peaking in Q3, and moderating in Q4 (though still slightly above Q1 levels). The annual average price rose ~10% YoY. Despite price volatility, the company strengthened internal management and production efficiency, achieving significant progress in disease prevention (particularly during winter outbreaks), which led to steady cost reductions and profitability in the last three quarters. Swind Operations Highlights (2024): Swine sales: 16.5249 million heads Piglets: 3.002 million Market hogs: 13.5229 million Slaughter volume: 2.78 million heads Revenue breakdown: Hog farming & sales: RMB 23.543 billion Slaughtering: RMB 6.855 billion Total swine segment revenue: RMB 30.398 billion