Liu Yonghao: Three major measures to repair the balance sheet of New Hope Liuhe

Mondo Finance Updated on 2024-03-02

Beijing News (Chief Reporter Guo Tie) On March 1, on the eve of the National People's Congress and the National People's Congress, Liu Yonghao, a member of the National Committee of the Chinese People's Political Consultative Conference and chairman of New Hope Group, held a first-class communication meeting to make suggestions and suggestions on topics such as the high-quality development of the pig industry and the development of private enterprises. At the same time, three major measures were proposed, such as group heating, improving management efficiency, and timely layout of new tracks, in order to repair the balance sheet of New Hope Liuhe.

Since the 90s of the 20th century, Liu Yonghao has participated in the National People's Congress and the National People's Congress for 7 consecutive sessions, and submitted more than 200 bills, proposals, and suggestions. As the helmsman of New Hope Group, the three rural issues and the development of private enterprises are the areas of long-term concern. At this year's National People's Congress and the National People's Congress, Liu Yonghao brought a total of 6 proposals and suggestions, involving enhancing the vitality of the private economy, promoting the high-quality development of the pig industry, promoting the virtuous cycle of "science and technology-agriculture-finance", using digital technology to save grain and improve the efficiency of animal husbandry, improving the high-quality and efficient medical and health service system, and strengthening the cultivation of rural talents.

Liu Yonghao bluntly said that in the past few years, private enterprises have experienced industry pains and transformation, and New Hope is also carrying out reform and innovation exploration. The financial report shows that since 2021, the aquaculture industry has experienced a downward cycle, and New Hope Liuhe has suffered continuous losses after experiencing a historical peak in 2020.

Faced with reality and predicament, New Hope Liuhe seeks to divest assets. In December 2023, China Animal Husbandry Industry and Commerce Group acquired 51% of the shares of Shandong Zhongxin Food Group, a subsidiary of New Hope, and Hainan Shengchen Investment, an affiliate of New Hope Group, acquired 67% of the shares of Deyang New Hope Liuhe Food. After the completion of the transaction, the controlling stake in the white feather meat and poultry industry and the food deep processing business will be spun off from the New Hope Liuhe report. New Hope Liuhe said in an institutional survey on January 8, 2024 that with the divestment of the above-mentioned businesses, after the completion of all payments in 2024, it is expected to bring a net inflow of 2 billion yuan to 3 billion yuan, reducing the asset-liability ratio by 4 to 5 points.

As for how to repair the balance sheet, Liu Yonghao proposed three major measures: huddling together for heating, improving management efficiency, and laying out new tracks in a timely manner. "In recent years, New Hope Liuhe has made a lot of investments in the pig industry, and the asset-liability ratio has increased greatly. Now the pig cycle has entered the bottom for nearly three years, and the pig business has lost money, which has brought certain pressure to the enterprise, and the national pig industry is facing such a problem, and repairing the balance sheet is the most important problem. ”

Liu Yonghao introduced that New Hope Liuhe is going all out to do several things, first of all, in the "wintering period" to keep warm, focus on the main business, and cooperate with China Animal Husbandry Group in the poultry industry. In the future, it will focus on the three major businesses of feed, pig breeding and breeding, and adjust other businesses. Secondly, to improve efficiency, grasp cash flow, and use digital means to manage, the original 3,000 pigs in a pig house need 2 people, now only 1 person or even half a person. The third is to aim at the layout of new tracks in a timely manner, such as investing in cold chain logistics.

Edited by Zhu Fenglan.

Proofread by Zhao Lin.

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