New Hope (000876.SZ) Financial Risk Analysis Report

Based on the latest collected data and market information, I have completed the comprehensive financial risk analysis report for New Hope (000876.SZ):

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Indicator	Current Value	Industry Benchmark	Risk Assessment
Asset-Liability Ratio	69.49%	50-60%	⚠️ Higher than normal, close to the 70% warning line
Cash-to-Short-Term-Debt Ratio	0.31	≥1.0	🔴 Severe shortage
Current Ratio	0.49	1.5-2.0	🔴 Extremely tight
Quick Ratio	0.26	≥1.0	🔴 Severe shortage

Based on the systematic scoring results of four core indicators, details are as follows:

Risk Factor	Score	Explanation
Asset-Liability Ratio Risk	2/2	Close to the 70% warning line, high level in the agriculture and animal husbandry industry
Cash-to-Short-Term-Debt Ratio Risk	3/3	0.31 is far below the 0.5 safety threshold
Current Ratio Risk	2/2	Below 0.5, extremely tight liquidity
Comprehensive Risk Score	6/7	Falls into the extremely high risk range

Cash-to-short-term-debt ratio is only 0.31, which means:

• The cash and cash equivalents held by the company can only cover about 31% of its short-term debts
• In case of concentrated debt maturity or deterioration of operating cash flow, the company may face
  direct default risk
• A current ratio of 0.49 indicates that current assets are only about half of current liabilities,
  severe shortage of short-term solvency

The deep implication of an asset-liability ratio of 69.49%:

• It is a
  high leverage level
  in the agriculture and animal husbandry industry (China Chengxin International’s rating report indicates that New Hope’s financial leverage is at a high level in the industry)
• The pig breeding business is highly cyclical, and price fluctuations will significantly affect EBITDA, which in turn affects solvency
• The overall valuation of the agriculture and animal husbandry industry is declining, and high leverage may amplify financial pressure during market downturns

• “Hope Convertible Bond” (127015) matured on January 2, 2026
  , and was delisted on January 5, 2026
• This is a RMB 4 billion convertible bond maturity redemption, which poses a major test to the company’s cash flow
• It is necessary to pay attention to the company’s repayment arrangements after the convertible bond matures and its subsequent refinancing capability

Company	Asset-Liability Ratio	Current Ratio	Cash-to-Short-Term-Debt Ratio
New Hope	69.49%	0.49	0.31
Muyuan Foods	~60%	~1.2	~1.0
Wens Foodstuff	~55%	~1.1	~0.9

: New Hope is than peer leaders Muyuan Foods and Wens Foodstuff in major solvency indicators.

Dimension	Score	Explanation
Financial Attitude	Neutral	Accounting policies are relatively prudent
Revenue Structure	Weak	Year-on-year revenue decline, weak profitability
Cash Flow	High Risk	Tight liquidity
Debt Risk	High Risk	High leverage + shortage of short-term solvency
Comprehensive Evaluation	High Risk	Directly identified as “high_risk” by API

The company’s stock performance indirectly confirms the market’s expectations of its financial risks:

Time Period	Stock Performance
Past 6 Months	-8.32%
Past 1 Year	+3.24% (with high volatility)
Past 3 Years	-30.64%
Past 5 Years	-59.38%

The long-term weak stock performance indicates that the market has concerns about the company’s fundamentals and financial status.

• ✅ Cash-to-short-term-debt ratio < 0.5 →
  Severe shortage of short-term solvency
• ✅ Current ratio < 0.5 →
  Extremely tight liquidity
• ✅ Identified as “high risk” in financial analysis

• The Liu Yonghao family, the actual controller, has certain financing capabilities and resource integration capabilities
• The state provides certain policy support for the agricultural sector
• The full industry chain layout in agriculture and animal husbandry has certain anti-cyclical capabilities

• Relatively stable corporate credit rating (China Chengxin International 2025 Rating Report)
• Holds a certain scale of financial assets with certain liquidity capability

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, with core issues as follows:

1. Severe liquidity shortage
   : A cash-to-short-term-debt ratio of 0.31 and current ratio of 0.49 indicate a major gap in the company’s short-term solvency
2. High leverage level
   : The asset-liability ratio of 69.49% is at a high level in the industry
3. Convertible bond maturity pressure
   : The RMB 4 billion “Hope Convertible Bond” maturity redemption increases cash flow pressure

, it is recommended to:

• Pay close attention to the company’s subsequent financing progress and debt arrangements
• Pay attention to the improvement of the company’s operating cash flow
• Exercise caution
  in the short term and avoid blindly bottom-fishing
• In the long term, observe the substantive progress of the company’s asset disposal, business transformation and leverage reduction

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[0] Jinling AI Financial Database - Company Profile and Financial Analysis Data of New Hope (000876.SZ)

[1] China Chengxin International Credit Rating Co., Ltd. - “2025 Credit Rating Report of New Hope Group Co., Ltd.”

[2] Announcement of New Hope Liuhe Co., Ltd. - “Announcement on the Maturity Redemption Result of ‘Hope Convertible Bond’ and Share Capital Change” (2026-01-06)