New Hope Liuhe Co.,Ltd.: history, ownership, mission, how it works & makes money

Founded in 1998 as Sichuan New Hope Agribusiness, New Hope Liuhe has grown from a domestic agribusiness into a global agrifood powerhouse-entering pig farming and slaughtering in 2000, expanding into Vietnam, the Philippines and Indonesia by 2005, and rising to the top of the industry with feed sales of 28.76 million tons (leader worldwide) and a vertically integrated model spanning feed production, animal husbandry, meat processing and food manufacturing; today it runs over 640 branches and subsidiaries, employs more than 50,000 people, processes 17.68 million pigs annually (and slaughters 3.96 million), operates in 16 countries, and combines family leadership-founder Liu Yonghao and chairwoman Liu Chang since 2013-with institutional investors, about 4.5 billion shares outstanding and a market capitalization of $6.13 billion as of August 8, 2025; recent performance shows revenue of RMB 103.06 billion in 2024 (down 27.27% from RMB 141.70 billion in 2023), while strategic priorities-evidenced by 178 patents in 2023, the 'Tree of Hope' ESG strategy, reclaiming 17.18 million tons of water for irrigation in 2023, and recyclable 'Rebirth' agriculture-underline how New Hope Liuhe creates value across feed, breeding, slaughtering, meat processing (including broilers, meat ducks and imported beef) and wide distribution channels that sustain its role as a national key leading enterprise in agricultural industrialization

New Hope Liuhe Co.,Ltd. (000876.SZ) - Intro

• Established: 1998 (as Sichuan New Hope Agribusiness Co., Ltd.)
• Core businesses: animal feed, pig farming & slaughtering, poultry, processed meat, aquaculture inputs, and agricultural inputs
• Leadership: Liu Chang became chairwoman in 2013, succeeding Liu Yonghao

• 1998 - Company established and entry into China's agricultural sector.
• 2000 - Expanded into pig farming and slaughtering, diversifying from feed into integrated livestock operations.
• 2005 - Began overseas expansion with operations in Vietnam, the Philippines, and Indonesia.
• 2010 - Achieved status as the world's largest feed producer with sales of 28.76 million tons.
• 2013 - Leadership transition: Liu Chang succeeds Liu Yonghao as chairwoman, maintaining family control.
• 2024 - Reported revenue of RMB 103.06 billion (down 27.27% from RMB 141.70 billion in prior year), reflecting market pressures and strategic adjustments.

• Founded and historically controlled by the Liu family (New Hope Group); family members hold significant board and executive roles.
• Listed entity ticker: 000876.SZ (Shenzhen Stock Exchange).
• Group structure: parent New Hope Group with subsidiaries focused on feed, livestock, meat processing, and international operations.

• Mission: to provide safe, affordable and sustainable protein and agricultural inputs through integrated value chains.
• Strategic focus: vertical integration (feed → farming → slaughtering → processing → retail/foodservice), technological adoption in breeding and feed efficiency, and international market expansion.

• Feed production: produces compound feed and raw feed ingredients for livestock, aquaculture and poultry markets - historically the backbone of revenue and volume leadership (28.76 million tons feed sold in 2010).
• Livestock farming: operates large-scale pig and poultry farms; integrates breeding, fattening and disease control to stabilize supply and margins.
• Slaughtering & processing: processes livestock into chilled/frozen meat and value-added products for domestic retail and foodservice channels.
• Distribution & downstream sales: wholesale, retail, and B2B supply to food processors and restaurants; export channels in Southeast Asia.
• R&D & quality control: invests in breeding, nutrition, and biosecurity to reduce mortality, improve feed conversion ratios and meet food-safety standards.

• Volume-driven feed sales: feed sales volumes directly scale with livestock production and pricing; historically a dominant revenue contributor.
• Livestock and product mix: margins influenced by live-animal prices, slaughter yields and processed product premiums.
• Input costs: raw-material prices (corn, soybean meal, other grains) directly impact gross margins on feed and downstream products.
• Vertical integration: owning upstream (feed) and downstream (farming, processing) captures more margin and reduces supply volatility.
• Geographic diversification: overseas operations (Vietnam, Philippines, Indonesia) provide growth and risk diversification, though currency and local-market risks apply.

• Feed volumes (tons) and average selling price - primary top-line driver.
• Pig herd size, mortality rates and slaughter throughput - affects meat supply and margins.
• Raw-material cost trends (corn, soybean meal) and hedging effectiveness.
• Processing capacity utilization and product mix toward higher-margin prepared foods.
• Export volumes and profitability in Southeast Asian operations.

• Family-led governance provides stability but can concentrate strategic control.
• Vertical integration reduces wholesale exposure but ties capital to farming and processing cycles.
• Revenue volatility (notably the 27.27% decline in 2024) highlights sensitivity to commodity cycles, animal-disease outbreaks, and domestic demand shifts.
• Opportunities include efficiency gains (feed conversion, yield improvements), premium product development, and expansion in regional markets.

New Hope Liuhe Co.,Ltd. (000876.SZ): History

• Founder & leadership: Liu Yonghao (founder of New Hope Group) remains a dominant figure as chairman of the group; Liu Chang became chairwoman of New Hope Liuhe in 2013, maintaining family leadership within the listed entity.
• Public listing: Listed on SZSE in 1998, bringing broader investor participation and institutional ownership alongside family control.
• Share count & market scale (as of 8 Aug 2025): ~4.5 billion shares outstanding; market capitalization of US$6.13 billion, reflecting its role as New Hope Group's largest business segment.
• Ownership mix: a combination of family control (through group holdings and related parties) and institutional investors (domestic and international), balancing long-term stability with external governance and capital.

• Governance implications: family leadership provides strategic continuity; institutional shareholders contribute oversight, liquidity and access to capital markets.
• Strategic role: as New Hope Group's largest business segment by scale, New Hope Liuhe anchors the group's listed exposure and capital-market profile.

New Hope Liuhe Co.,Ltd. (000876.SZ): Ownership Structure

• Controlling shareholder: New Hope Group - strategic industrial parent providing capital, integrated supply-chain support and governance direction.
• Public shareholders: retail and institutional investors trading on the Shenzhen exchange (000876.SZ).
• Management & governance: board-led strategy focused on R&D, sustainability and scale in livestock, feed and processed-foods businesses.

• Mission: provide high-quality agricultural products to ensure food security while promoting sustainable development across the value chain.
• Innovation: 178 patents granted in 2023, reflecting heavy investment in breeding, feed formulation, digital farm management and processing technologies.
• Sustainability: the 'Tree of Hope' ESG strategy drives responsible growth; 2023 water-reclamation reached 17.18 million tons for irrigation.
• Resource-efficiency models: promotion of the 'Rebirth' recyclable agriculture model and other sustainable farming practices to reduce inputs and recycle outputs.
• Social & environmental commitment: core values rooted in agriculture and animal husbandry to benefit society, the environment and the economy.

New Hope Liuhe Co.,Ltd. (000876.SZ): Mission and Values

• Mission: Ensure safe, affordable food through integrated agribusiness, innovation and sustainable practices.
• Core values: quality & safety, innovation, ecological responsibility, farmer partnership, and global expansion.

• Vertical integration: feed → breeding & husbandry → slaughter & processing → branded foods & distribution.
• Scale & footprint: over 640 branches and subsidiaries and more than 50,000 employees supporting coordinated operations and supply chains.
• International presence: active in 16 countries including China, Vietnam, the Philippines, Indonesia, Singapore and Egypt.

• Feed manufacturing: sale of compound feed and premixes to farms and integrated operations (largest revenue and volume driver globally).
• Animal husbandry & breeding: income from livestock production, breeding stock and integrated farm services.
• Meat processing & slaughter: added-value meat products for retail, foodservice and industrial customers; economies of scale from high processing volumes.
• Branded food products: packaged meats, ready-to-eat foods and processed products sold under company brands and through distribution channels.
• International operations & exports: revenue diversification from cross-border sales, regional production hubs and local partnerships.
• Input sales & services: veterinary, feed additives, farm management solutions and technical services for upstream partners.
• R&D & premium product lines: margin enhancement via improved breeds, nutrition, and branded premium offerings.

• Designated a national key leading enterprise in agricultural industrialization-recognition of its strategic role in China's agribusiness ecosystem.
• Competitive advantages include scale in feed production, integrated supply chain control, geographic diversification across 16 countries, and strong downstream branding/processing capacity.

New Hope Liuhe Co.,Ltd. (000876.SZ): How It Works

• Primary revenue streams: manufacture and sale of compound feeds for poultry, swine, aquatic and ruminant sectors; breeding and fattening operations (notably pigs); slaughtering and deep processing of poultry and pork; imported beef trading; and distribution to retail, foodservice and wholesale channels.
• Vertical integration: in-house feed supplies key raw materials to company farms and contract farms, reducing input cost volatility and enabling tighter quality control across production, slaughter and processing.
• Product diversification: domestic white‑feathered broilers, meat ducks, processed pork products and imported beef broaden appeal across price points and consumer preferences.

• Feed sales: bulk and packaged compound feeds sold to independent farmers, company-operated farms and integrated production units. Feed typically accounts for the largest single share of group revenue due to volume and recurring demand.
• Breeding & fattening: company-run breeding farms and fattening operations convert feed into higher-margin finished animals (piglets → market hogs), capturing animal-margin instead of only selling feed inputs.
• Slaughter and deep processing: slaughterhouses and processing plants produce chilled/frozen carcasses, portioned meat and higher-value processed items (ready meals, sausages), adding value and higher per‑kg margins.
• Meat imports & trading: selective beef import programs fill domestic supply gaps, support product mix and allow New Hope Liuhe to target premium segments.
• Distribution & channel management: an extensive logistics and sales network supplies supermarkets, wet markets, restaurants, foodservice operators and e‑commerce channels-improving sell‑through and reducing working‑capital friction.

• Economies of scale in feed manufacturing and procurement lower per‑unit costs and support competitive pricing.
• Internal transfer of feed to company farms converts low-margin feed revenue into higher-value meat sales.
• Deep processing enables higher average selling prices and brand value for packaged/processed meat.
• Imported beef and diversified species (broilers, ducks, ruminants) reduce exposure to single-species shocks and expand addressable market.
• Integrated logistics and sales channels improve shelf availability and reduce intermediated margins, increasing net realizations.

• Scale and brand - large national footprint supports bargaining power with suppliers and wide market access.
• R&D and formulation capabilities - in-house feed R&D improves feed conversion ratios (FCR) and production efficiency on partner farms.
• Risk management - geographic and species diversification plus imported beef sourcing smooth supply fluctuations from domestic outbreaks or feed-cost spikes.

New Hope Liuhe Co.,Ltd. (000876.SZ): How It Makes Money

• Primary revenue streams: compound feed sales, breeding & livestock, processed meat and consumer-branded food, agricultural inputs and by-products.
• Geographic diversification: operations and sales across China and expansion into 16 countries to reduce single-market dependency.
• R&D & IP monetization: 178 patents in 2023 supporting proprietary feed formulations, breeding tech and processing efficiencies.
• ESG & brand value: 'Tree of Hope' initiatives improving sustainability credentials and access to ESG-linked financing/customers.