2025年年度报告（英文版）

Full text of the 2025 Annual Report of New Hope Liuhe Co., Ltd. 1 New Hope Liuhe Co., Ltd. 2025 Annual Report 2026-34 [April 29, 2026] Full text of the 2025 Annual Report of New Hope Liuhe Co., Ltd. 2 2025 Annual Report Section 1 Important Note, Table of Contents and Definitions The Board of Directors, directors, and senior management of the Company warrant that the contents hereof 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. As declared by Liu Chang (Chairman), Shi Han (Chief Financial Officer) and Su Xiaodan (Head of Accounting Unit & Accounting Supervisor): the financial report herein is true, accurate and complete. All directors of the Company attended the board meeting deliberating this report. I. Animal disease and natural disaster risks Animal disease is the main risk faced in the development of livestock industry. There are two 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 resulting in reduced yield, increased costs and lower prices. Second, the occurrence and prevalence of animal disease on a large scale easily influence the consumer psychology, leading to a contraction in market demand, and also affecting the feed production and operation. For example, the outbreak of the major swine disease in China in 2018 caused a huge shock to the whole industry. The major swine disease experienced a weakened mutation at the end of 2020 and beginning of 2021, making it more spread channels, Full text of the 2025 Annual Report of New Hope Liuhe Co., Ltd. 3 longer incubation time, and more difficult to detect and eliminate. In recent years, major swine diseases have gradually become normal. Especially during the winter and early spring when the temperature is low, they have caused particularly severe impacts in the northern regions of China. As the density of livestock farming in the South increases, the risk of swine diseases also rises. In terms of the natural disaster risk, the feed and slaughter are closely related to planting and livestock farming industry. Therefore, the natural disasters such as temperature anomalies, drought, flood, earthquake, hail, and snow disaster will all adversely affect the industry operation and development. Natural disasters occurring in and around the Company's production facilities may result in substantial damages to production infrastructure or equipment. Furthermore, natural disasters and extreme weather events can also drive up prices for certain feed ingredients and meat. For instance, in the summer of 2023 and the autumn of 2025, central China experienced a wide range of persistent rainy weather, causing a large range of crop disasters, which also had an impact on the price of feed raw materials and affected the quality of raw materials. The extensi