New Hope Liuhe Bundle
What is the history of New Hope Liuhe?
New Hope Liuhe began its journey in China's agricultural sector, founded by Liu Yonghao and his brothers. The company expanded into animal feed in 1992, building on earlier success in animal husbandry. New Hope Liuhe Co., Ltd. was officially established on March 4, 1998, originating in Sichuan, China.
The company's mission focused on benefiting farmers and consumers while ensuring a sustainable food supply chain. This foundational principle guided its growth and expansion into a major agricultural enterprise.
New Hope Liuhe's impressive trajectory is highlighted by its ranking as the 378th largest company globally on the 2024 Fortune Global 500 list. As of March 31, 2025, its trailing 12-month revenue reached $14.4 billion. The company is a leader in integrated livestock and feed production, with 2023 feed sales totaling 28.76 million tons, making it the world's largest in this segment. Its pig farming operations are also significant, ranking third in China. For a deeper dive into the external factors influencing such companies, consider a New Hope Liuhe PESTEL Analysis.
What is the New Hope Liuhe Founding Story?
The New Hope Liuhe company's history is rooted in the entrepreneurial vision of the Liu brothers, who transitioned from government roles to establish an animal husbandry business in 1982. Their initial focus on quail and chicken breeding in Sichuan, China, provided the foundation for what would become a significant agricultural enterprise.
New Hope Liuhe Company Founding Story
The New Hope Liuhe company's origins trace back to 1982 when Liu Yonghao and his three brothers ventured into animal husbandry, starting with quail and chicken breeding. This early success paved the way for the formal establishment of the Hope Group in 1992, with a primary focus on animal feed production.
- The formal founding of New Hope Liuhe Co., Ltd. occurred on March 4, 1998.
- The company was initially listed on the Shenzhen Stock Exchange as Sichuan New Hope Agribusiness Co., Ltd.
- The business model centered on producing and distributing animal feed to support China's growing agricultural sector.
- The Liu brothers divided their business interests in the mid-1990s, with Liu Yonghao continuing to lead the development of what became New Hope Liuhe.
- The economic reforms in China during the late 20th century provided a conducive environment for the company's growth.
The formal establishment of New Hope Liuhe Co., Ltd. on March 4, 1998, marked a significant milestone, leading to its listing on the Shenzhen Stock Exchange under the name Sichuan New Hope Agribusiness Co., Ltd. This period coincided with China's reform and opening-up policies, which fostered the growth of private enterprises and created a strong demand for agricultural inputs like animal feed. The company's early development was characterized by a focus on its core business, leveraging early profits and family resources, a common bootstrapping approach for many successful ventures during that era. Understanding the broader context of this period is crucial to grasping the Competitors Landscape of New Hope Liuhe and its subsequent trajectory.
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What Drove the Early Growth of New Hope Liuhe?
The early history of the New Hope Liuhe company is marked by strategic consolidation and ambitious expansion, setting the stage for its future prominence in the agricultural sector. This period saw the company evolve through key acquisitions and a broadening of its business scope.
Formation Through Strategic Merger
The New Hope Liuhe company as it is known today was significantly shaped in 2005 when New Hope Group acquired Shandong Liuhe Group. This pivotal merger created a formidable entity in the agricultural and animal husbandry industry. The company's journey began earlier, with its listing in 1998 as Sichuan New Hope Agribusiness Co., Ltd.
Accelerated Expansion and Diversification
Further growth was evident in 2006 with the acquisition of Qianxihe group, a notable pork supplier for the 2008 Beijing Olympic Games. This period also saw the company laying groundwork for international operations, with New Hope Group establishing its first overseas factory in Vietnam before 1998.
Global Reach and Market Leadership
By 2023, the company's international footprint extended to 15 countries, including key markets like the Philippines, Indonesia, Singapore, and Egypt. The asset restructuring of New Hope Liuhe by New Hope Group in 2011 solidified its position as China's largest listed agricultural and animal husbandry enterprise.
Financial Growth and Leadership Transition
The company demonstrated significant financial progress, with revenue reaching approximately 61.5 billion yuan in 2015. A notable leadership change occurred in 2013 when Liu Chang assumed the chairmanship of New Hope Liuhe. The company's business evolution involved a systematic diversification from animal feed into livestock breeding, meat processing, and food sales, creating a vertically integrated supply chain. This strategy, coupled with a focus on economies of scale and a robust distribution network, was instrumental in building strong brand recognition and a significant market share, as detailed in the Marketing Strategy of New Hope Liuhe.
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What are the key Milestones in New Hope Liuhe history?
The history of New Hope Liuhe company is marked by significant achievements, continuous innovation, and resilience in overcoming challenges. The company's operational excellence was recognized with its branches serving as official pork suppliers for the Beijing 2008 Olympic Games, poultry meat suppliers for the SCO 2018 Qingdao Summit, and supply-assuring entities for the Beijing 2022 Winter Olympic Games. In 2024, New Hope Liuhe achieved global recognition, ranking 378th on the Fortune Global 500 list, underscoring its substantial market presence and business evolution.
| Year | Milestone |
|---|---|
| 2008 | Designated as a pork supplier for the Beijing Olympic Games. |
| 2018 | Served as a poultry meat supplier for the SCO Qingdao Summit. |
| 2022 | Acted as a supply-assuring entity for the Beijing Winter Olympic Games. |
| 2024 | Ranked 378th on the Fortune Global 500 list. |
New Hope Liuhe's commitment to innovation is demonstrated through its substantial R&D investments, reaching RMB 880 million in 2022, with a focus on improving feed efficiency and sustainable farming. The company secured authorization for 178 patents in 2023 and fully implemented its proprietary 'Xinxiwang 10K' pig breeding technology, a significant advancement in animal husbandry. Its recognition as a 'National Accredited Enterprise Technology Center' and a National Laboratory CNAS, along with six technologies receiving the second prize of the National Science and Technology Progress Award, highlights its dedication to technological progress and business development.
R&D Investment
In 2022, the company invested RMB 880 million in research and development, focusing on feed efficiency and sustainable farming practices.
Patent Acquisition
In 2023, New Hope Liuhe obtained authorization for 178 patents, showcasing its commitment to intellectual property and innovation.
Proprietary Breeding Technology
The company fully adopted its independently developed 'Xinxiwang 10K' pig chip technology, representing a breakthrough in its pig business.
National Recognition
Recognized as a 'National Accredited Enterprise Technology Center' and a National Laboratory CNAS, affirming its technological capabilities.
Science and Technology Awards
Six of its innovative technologies have received the second prize of the National Science and Technology Progress Award, underscoring its contributions to agricultural science.
Fortune Global 500 Ranking
Achieved a significant global standing by ranking 378th on the Fortune Global 500 list in 2024, reflecting its extensive business operations.
The company has faced considerable challenges, including intense market competition and significant downturns, such as the pig price decline in 2023 where prices averaged around 15 yuan/kg, the lowest since 2020. Navigating stringent environmental protection policies also requires continuous adaptation. In 2024, revenue decreased to USD 14.32 billion from USD 19.99 billion in 2023, largely due to the transfer of controlling interest in its white feather broiler and food processing sector.
Market Price Volatility
Experienced a significant drop in pig prices in 2023, averaging around 15 yuan/kg, impacting profitability and requiring strategic adjustments.
Competitive Landscape
Faces intense competition from both domestic and international players in the agricultural sector, necessitating continuous operational improvements.
Regulatory Environment
Ongoing adaptation to evolving environmental protection policies presents a continuous challenge, requiring investment in sustainable practices.
Revenue Impact from Divestment
A revenue decrease in 2024 was primarily due to the transfer of controlling interest in its white feather broiler and food processing segment, impacting its overall financial reporting.
Operational Streamlining
Responded to challenges by streamlining organization, reducing costs, and enhancing operational efficiency, particularly within its pig business.
ESG Strategy
Emphasizes sustainable development through its 'Tree of Hope' ESG strategy, aiming for a 30% reduction in carbon emissions by 2025, aligning with broader industry trends.
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What is the Timeline of Key Events for New Hope Liuhe?
The New Hope Liuhe company history is a narrative of strategic growth and adaptation, beginning with its roots in animal husbandry and evolving into a major player in China's agricultural sector. This progression of milestones highlights its commitment to innovation and market leadership.
| Year | Key Event |
|---|---|
| 1982 | New Hope Group was founded by Liu Yonghao and his brothers, initiating its operations in animal husbandry. |
| 1992 | The precursor to New Hope Group officially entered the animal feed business. |
| 1998 | New Hope Liuhe Co., Ltd., then known as Sichuan New Hope Agribusiness Co., Ltd., was listed on the Shenzhen Stock Exchange. |
| 2005 | New Hope Group acquired Shandong Liuhe Group, leading to the formation of the combined New Hope Liuhe entity. |
| 2006 | The company acquired Qianxihe group, which was a designated pork supplier for the 2008 Beijing Olympic Games. |
| 2011 | New Hope Group completed asset restructuring for New Hope Liuhe, solidifying its position as China's largest listed agricultural and animal husbandry enterprise. |
| 2013 | Liu Chang, daughter of Liu Yonghao, took over as chairman of New Hope Liuhe. |
| 2022 | The company reported revenue of RMB 111.69 billion (approximately USD 16.5 billion) and held about 15% of China's feed production market share. |
| 2023 | New Hope Liuhe achieved sales revenue of RMB 141.7 billion, with feed sales reaching 28.76 million tons, ranking first globally, and its pig farming operations ranked third in China with 17.68 million pigs available for slaughter. The company also secured 178 patents. |
| 2024 | Revenue reached USD 14.32 billion with a net income of RMB 0.474 billion, a 90.05% year-on-year increase, and overseas fodder sales amounted to 5.25 million tons. |
| Q1 2025 | Net profits were RMB 445 million, a 122.99% year-on-year increase, with trailing 12-month revenue of $14.4 billion as of March 31, 2025. |
| August 8, 2025 | The company's stock price was $1.36, with a market capitalization of $6.13 billion. |
Strategic Vision for Global Leadership
By the close of 2024, the company is set to redefine its strategic direction for the next five years. The primary objective is to emerge as a leading international service provider across the entire farming industry value chain.
Enhancing Operational Efficiency in Pig Farming
Key initiatives include bolstering management and cost control within the pig farming segment. The aim is to reduce the average operational cost per fattened pig to below 13 yuan/kg by the end of 2025, with advanced operational lines targeting under 12 yuan/kg.
Expanding Overseas Fodder Business
The domestic fodder business is projected for steady expansion. Simultaneously, overseas fodder operations are targeted for significant growth, with a goal to reach 6 million tons in sales by 2025, establishing it as a crucial third pillar for the company's business.
Commitment to Sustainable Food Systems
The company remains dedicated to integrating global resources and building a secure, healthy food industry chain. This aligns with its founding mission of 'Hope, Make Life Better,' and contributes to China's rural revitalization efforts, reflecting its core Mission, Vision & Core Values of New Hope Liuhe.
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