新 希 望：2025年年度报告（英文版）

2025 Annual Report 2026-34 [April 29, 2026] 2025 Annual Report Section 1 Important Note, Table of Contents and Definitions The Board of Directors, directors, and senior management of the Companywarrant that the contents hereof are true, accurate and complete, and free ofany false recordings, misleading statements or significant omissions, and thatthey will be jointly and severally liable for the legal consequences. As declared by Liu Chang (Chairman), Shi Han (Chief Financial Officer)and Su Xiaodan (Head of Accounting Unit & Accounting Supervisor): thefinancial report herein is true, accurate and complete. All directors of the Company attended the board meeting deliberating thisreport. I. Animal disease and natural disaster risks Animal disease is the main risk faced in the development of livestockindustry. There are two kinds of risks arising out of the occurrence of epidemicdisease. First, the occurrence of epidemic disease is likely to result in death oflivestock, directly resulting in reduced yield, increased costs and lower prices.Second, the occurrence and prevalence of animal disease on a large scale easilyinfluence the consumer psychology, leading to a contraction in market demand,andalso affecting the feed production and operation.For example,theoutbreak of the major swine disease in China in 2018 caused a huge shock tothe whole industry. The major swine disease experienced a weakened mutationat the end of 2020 and beginning of 2021, making it more spread channels, longer incubation time, and more difficult to detect and eliminate. In recentyears, major swine diseases have gradually become normal. Especially duringthe winter and early spring when the temperature is low, they have causedparticularly severe impacts in the northern regions of China. As the density oflivestock farming in the South increases, the risk of swine diseases also rises. In terms of the natural disaster risk, the feed and slaughter are closelyrelated to planting and livestock farming industry. Therefore, the naturaldisasters such as temperature anomalies, drought, flood, earthquake, hail, andsnow disaster will all adversely affect the industry operation and development.Natural disasters occurring in and around the Company's production facilitiesmay result in substantial damages to production infrastructure or equipment.Furthermore, natural disasters and extreme weather events can also drive upprices for certain feed ingredients and meat. For instance, in the summer of2023 and the autumn of 2025, central China experienced a wide range ofpersistent rainy weather, causing a large range of crop disasters, which alsohad an impact on the price of feed raw materials and affected the quality ofraw materials. The extensive heavy rain caused by a typhoon in southernChina also brought adverse effect on disease prevention and control of pigfarming. Risk countermeasures: facing animal disease, the farms constructed by theCompany that are normalized and standardized ones staffed with professionalbreedingtechnologists and equipped with strict anti-epidemic measures effectivelyprevent and control the occurrence of common diseases.TheCompanyhas also summarized a series of approaches and measuresresponding to major animal diseases through years of experience accumulationto eliminate the impact of various animal diseases The Company has beenguiding technicians to better serve self-owned farms and external farmers byestablishinganimal healthcare laboratories in various areas,creatingnationwide animal healthcare system, and conducting the monitoring andwarning of animal diseases in real time. In particular, in response to the majorswine disease that broke out in 2018, the Company formulated comprehensiveprevention and control measures, covering multiple aspects including its ownpig farms, collaborative finishing farms, swine feed production plants, andinternal veterinary laboratories. The prevention and control measures startfrom the source of animal nutrition and ensure a comprehensive preventionand control strategy. As a result, the Company's biosafety prevention systemand pig production indicators have reached the industry-leading level. Inresponse to the new round of attenuated swine disease that occurred at the endof 2020 and the beginning of 2021, the Company summarized its experienceand upgraded prevention and control and eradication methods, including dualantibody and dual screening in the whole group serum, application of thermalimagingdevices,and safe storage and disinfection of materials,andcontinuously optimized the prevention and controlprocess to ensure quickerresumption of production and reduce unnecessary prevention and control investment. From the end of 2023 to the beginning of 2024, the Companyfocused on upgrading and renovating the epidemic prevention facilities andequipment of some long-term affected farms, significantly enhancing theirability to prevent the impact of diseases. Since the winter of 2024, goodepide