Analysis of Dividend Distribution and Protection of Minority Shareholders' Rights and Interests for New Hope (000876.SZ)

Based on the latest company announcements and financial data obtained, New Hope

. The actual situation is as follows:

Indicator	Data
2024 Annual Total Cash Dividends	RMB 108,622,565.69
Proportion of 2024 Net Profit Attributable to Parent Company Shareholders	22.94%
Cumulative Cash Dividends from 2022 to 2024	RMB 108,622,565.69
Accumulated Undistributed Profits at Year-End in Parent Company’s Statements	RMB 2.521 Billion

The company’s 2024 profit distribution plan was reviewed and approved by the board of directors in April 2025, and submitted to the annual general meeting for voting [1]. This dividend distribution debunks the so-called “five consecutive years of no dividends” claim.

: The company incurred significant losses from 2021 to 2022 due to the impact of the pig cycle, and its average annual net profit from 2022 to 2024 was negative. Despite this background, the company still distributed cash dividends, reflecting its emphasis on shareholder returns [1].

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The company has experienced severe financial difficulties in recent years:

Financial Indicator	Data
Current Ratio	0.49 (below the safe value of 1.0)
Quick Ratio	0.26 (seriously low)
Debt Risk Rating	High Risk
ROE (Return on Equity)	4.19%
Net Profit Margin	1.02%

Due to the continued downturn in the pig farming industry in 2021 and 2022, the company incurred substantial losses, which put pressure on its historical undistributed profits. The company explained that it prioritized using retained undistributed profits for

to enhance the company’s risk resistance capability [1].

Indicator	2024 Performance
Net Profit Attributable to Parent Company Shareholders	RMB 474 Million (returned to profitability)
Operating Revenue	Approx. RMB 115 Billion
Operating Cash Flow	Positive Inflow

From 2023 to 2024, the company improved its liability level through business optimization and active asset disposal, laying a foundation for the subsequent recovery of dividend distribution capability [1].

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According to company announcements, the protection of minority shareholders’ rights and interests is reflected in the following aspects:

The company has formulated the “Three-Year Shareholder Dividend Return Plan (2024-2026)”, promising:

“The cumulative profits distributed in cash over the recent three years shall not be less than 30% of the average annual distributable profits realized in the recent three years” [2]

• Independent directors are required to issue independent opinions on the reasons for dividend suspension
• The company must disclose the specific reasons for dividend suspension in its periodic reports
• The purposes and usage plans of retained funds must be disclosed in detail [2]

• Minority shareholders can participate in the voting on dividend distribution proposals through
  on-site or online voting
• The company must
  disclose the voting results of minority shareholders separately
  in the announcement of resolutions of the general meeting of shareholders [1]

Regulatory Document	Requirements
“Regulatory Guidelines for Listed Companies No. 3 – Cash Dividends of Listed Companies”	Clarifies the conditions and proportions for cash dividends
“Self-Regulatory Guidelines for Listed Companies No. 1 – Standard Operation of Main Board Listed Companies”	Standardizes the decision-making procedures for profit distribution
“Notice on Further Implementing Matters Concerning Cash Dividends of Listed Companies”	Strengthens information disclosure on dividend distribution

According to company announcements, investors can protect their rights through the following channels:

• Investor contact information publicly disclosed by the company
• On-site questions during general meetings of shareholders
• Investor Interaction Platform of the Shenzhen Stock Exchange

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• Pay Attention to General Meetings of Shareholders
  : Cast your vote on dividend distribution proposals
• Exercise Online Voting Rights
  : Participate in decision-making without attending on-site
• Contact the Company’s Investor Relations Department
  : Learn about the company’s operations and dividend distribution plans

Indicator to Monitor	Meaning	Investment Recommendation
Current Ratio	Short-term solvency	Pay attention to risks if <1.0
Dividend Payout Ratio	Level of shareholder returns	Sustained increase is a positive signal
Undistributed Profits	Reserve potential for dividend distribution	Larger amount indicates stronger potential

As a leading enterprise in the pig farming industry, New Hope is significantly affected by the “pig cycle”. Historical losses are characteristic of the industry’s cyclical nature; the company returned to profitability in 2024, and its financial situation is gradually improving. Minority shareholders should

rather than short-term dividend amounts.

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New Hope has not failed to distribute dividends for five consecutive years; the company resumed cash dividends in 2024, accounting for 22.94% of its net profit. The main reason for the historical suspension of dividend distribution was industry-wide losses caused by the pig cycle, and the company prioritized using profits to repay debts to reduce financial risks. The protection mechanism for minority shareholders’ rights and interests is relatively sound, including measures such as independent director supervision, online voting system, and separate disclosure of minority shareholders’ voting results. It is recommended that investors actively participate in corporate governance, pay attention to the company’s business improvement progress, and view dividend distribution fluctuations in cyclical industries rationally.

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[1] Announcement of 2024 Annual Profit Distribution Proposal by New Hope Liuhe Co., Ltd. - Stock Code: 000876 (April 26, 2025)
https://file.finance.qq.com/finance/hs/pdf/2025/04/26/1223314069.PDF

[2] Announcement on the Three-Year Shareholder Dividend Return Plan (2024-2026) by New Hope Liuhe Co., Ltd. (December 1, 2023)
http://epaper.zqrb.cn/html/2023-12/01/content_1002738.htm

[3] Announcement on the Impact of Diluting Immediate Returns from the Issuance of A-Shares to Specific Objects on the Company’s Key Financial Indicators and the Remedial Measures Adopted by the Company (Second Revised Version) by New Hope Liuhe Co., Ltd. (January 12, 2026)
https://www.cfi.net.cn/p20260112002290.html