Longsheng Industrial Park, Wolong District, Nanyang City, Henan Province, China.Post Code : 473000General Manager’s O? ce : 0377-65233888Security Department : 0377-66100053Website : http://www.muyuanfoods.comE-mail : o? ce@muyuanfoods.com
Muyuan Foods Co., Ltd.
Muyuan Foods Co., Ltd.Sustainability Report 2019
Creating valueServing societySelf-discipline and self-con? dencePromoting social progress
Scope of the ReportUnless otherwise speci? ed, the Report coversMuyuan Foods Co., Ltd. and its subsidiaries duringthe period from 1 January 2019 to 31 December2019. Description in some parts of the Report goesbeyond the above period .Report ReferenceThe Report is prepared in accordance with theSustainability Reporting Standards of the GlobalReporting Initiative (“GRI Standards”) issued by theGlobal Sustainability Standards Board (“GSSB”), theCASS CSR 4.0 issued by the Chinese Academy ofSocial Sciences (“CASS”)the Social ResponsibilityStandards (“ISO 26000”) issued by the InternationalStandards Organization (“ISO”) and other domesticand foreign CSR reporting standards and guidelines, so as to meet applicable standards for disclosingsustainable development information, withconsideration to the industry background andfeatures of the Company.
Report AvailabilityThe Report is available in both printed andelectronic form. The electronic form can be readand downloaded at CNINFO (www.cninfo.com. cn),a website accredited by the China SecuritiesRegulatory Commission (“CSRC”) for informationdisclosure of listed companies, and the Company’swebsite (www.muyuanfoods.com).Notes on the Report’s dataThe Report’s data are all extracted from internallycollected data, public documents, sustainabledevelopment cases reported by subsidiaries andqualitative and quantitative informationquestionnaires prepared for reporting.CurrencyUnless otherwise speci? ed, all monetary amountsquoted in the Report are shown in Renminbi(“RMB”).
About the Report
Muyuan Foods Co., Ltd. (hereinafter referred to as “Muyuan”, “Muyuan Co., Ltd.”, the “Company” or “we”) herebyissues the Sustainability Report 2019 (the “Report”) to describe Muyuan’s policies, measures, actions andachievements in sustainable development to stakeholders.
Muyuan Foods Co., Ltd.
Contents
Company Pro? leCorporate Governance
Social Responsibility StrategySocial Responsibility ManagementFrameworkMateriality AssessmentStakeholder CommunicationTopic 1: Contributing toCOVID-19 ControlTopic 2: Further Promotion ofTargeted Poverty AlleviationTopic 3: Industrial Upgradingof ASF PreventionTopic 4: Technology Innovation,Leading the Upgrade
Guaranteeing Safety and QualityCommitting to Animal Welfare
Innovative Environmental ManagementConceptBuilding Circular Economy
Strengthening Supplier ManagementDelivering Sustainable ValueCo-constructing Industrial Chain EcologyEnhancing Customer Experience
Assisting in Education by the Ju’ai ProjectSupporting Community Construction
Introducing Talented PeopleGuaranteeing Health and SafetyInnovating IncentivesSupporting Employee DevelopmentEnjoying Abundant Life
About the ReportChairman’s Statement
About Muyuan
Responsibility Management
Food Safety First,Providing High Quality Pork
Circular Economy,Realising Sustainable Development
Work Together,
Sharing the Value of the Industrial Chain
Muyuan Ju’ai,Supporting Public Welfare
People-Oriented,Contributing to Their Happiness
OutlookMuyuan Social Responsibility IndexGRI Standards IndexCASS-CSR 4.0 IndexStakeholders Feedback Form
Sustainability Report 2019
Muyuan Foods Co., Ltd.
“Creating value, serving society, self-discipline and self-con? dence, and promoting socialprogress” comprise the core cultural values of Muyuan. As a large-scale agricultural enterpriseborn and raised in “agriculture, rural areas and farmers”, Muyuan takes creating social value asthe ultimate goal. “Serving people with safe pork and letting them enjoy a rich life” is themotive of Muyuan’s co ntinuous development and expansion. As of the end of 2019, Muyuanhas expanded its business to 18 provinces and regions across China and is making concertede? orts with over 50,000 members to realise its goal.In 2019, against the backdrop of the ongoing African swine fever (“ASF”) outbreak, Muyuanwas commissioned to develop a set of decontamination techniques to comprehensivelydetect and precisely eliminate the virus, to safeguard the national hog production and supply.Amid the deepening of poverty alleviation, Muyuan makes full use of its industrial advantagesto explore a long-term mechanism for steady poverty alleviation and contribute to the ? ghtagainst poverty. This year, the “responsibility” of Muyuan is endowed with more profoundsigni? cance.In early 2020, in the face of the outbreak of Coronavirus Disease 2019 (“COVID-19”) anddi? culties in the disease prevention and control, Muyuan responded very quickly. Muyuaninjected strong con?dence and strength to combat the pandemic through proactivelyassisting local governments in ? ghting the pandemic with all-out e? orts, donating 200million immediately, and taking advantage of global procurement, technology research anddevelopment (“R&D”) and e-commerce platforms. From headquarters to local subsidiaries, ahost of Muyuan members have devoted themselves to the war against COVID-19.
Focusing on the principal business to provide people with safe porkIn response to the “13th Five-Year” Development Plan, Muyuan sticks to market-sidepositioning and gives full support to national supply-side structural reform. Whilecontinuously expanding our pig farming scale, we achieved controllable and traceablemanagement of pork products across the whole industrial chain to ensure food safety. In2019, the Company sold 10,250,000 pigs, fully ensuring market supply.
Developing technologies to lead industry transformation and upgrading
Muyuan is committed to innovation. Through iterative development of hog houses andphased R&D of feed, veterinary and environmental protection technologies, the Companyregisters visible growth in the course of continuous innovation and is upgrading its pigfarming to be information-based intelligence-based. Equipment upgrading, intelligent andconnected vehicle (“ICV”), AI application, and interdisciplinary talents are reshaping theindustry development mode.
Making concerted e? orts to ? ght for poverty alleviationMuyuan actively serves as the pacesetter to address the issues of “agriculture, rural areas andfarmers”, and incorporates the national strategy of poverty alleviation into the Company' sdevelopment strategy, aiming to make the pig industry to be the largest poverty-reliefindustry in China. As of the end of 2019, Muyuan has invested 22.82 billion in poverty-reliefprogrammes in 71 national and provincial poverty-stricken counties, creating over 30,000jobs therein. The "5 +" asset-based income poverty alleviation model has helped anddocumented about 140, 000 poor households and 350,000 poor people in 49 counties of 12provinces in China, bringing them RMB 540 million income.
Qin Yinglin, Chairman
Prioritising environmental protection to preserve lushmountains for the futureMuyuan regards environmental protection as one of theCompany’s priorities and upholds the development principle of“ no cost passed on to others, no shirking of responsibility andno hidden hazards”. Muyuan has devoted itself to “zeroemissions, no hidden hazards, no odour, smog reduction andcarbon emissions reduction” by introducing the idea of “FiveSteps of Environmental Protection”, constructing a soundenvironmental management mechanism, building a digitalintelligent environmental protection platform, and leadinginnovation in environmentally friendly processing technologies.Nowadays, Muyuan’s average water consumption, carbonemission and air consumption for pig farming is less than theindustry average, and we have world leading anti-odourtechnology. Muyuan vigorously promotes the circulareconomic model of "breeding – biogas manure – greenagriculture", assisting in rural revitalisation and the building ofbeautiful China.Muyuan walks steadily towards reaching the sustainabledevelopment. Facing a market environment where challengesand opportunities coexist, Muyuan will always adhere to thecultural theme of "Discipline, Responsibility, Excellence andService" and the development philosophy of "Creating value,Serving society" by providing more high-quality pork andcontributing to sustainable development for society, so as tocreate a better life for everyone and make greater contributionsto social development.
Chairman’sStatement
Sustainability Report 2019
Muyuan Foods Co., Ltd.
AboutMuyuan
Practice self-discipline
Embrace responsibilities
Pursue perfection
Serve society
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Founded in 1992, Muyuan Foods Co., Ltd. (stock code: 002714) has its headquarters located in Nanyang, Henan Province. TheCompany centres itself on the “wholly self-breeding, large-scale and integrated” model and has formed a pig industrial chain thatintegrates feed processing, pig breeding, commercial pig farming, and pig slaughter, after 27 years of development. As of theend of 2019, the total assets of Muyuan amounted to RMB 52.887 billion, and its businesses covered 18 provinces and regionsthroughout the country, with 50, 319 employees and 138 subsidiaries. Muyuan strengthens quality control to ensure the safetyand quality of pork products, accelerates scienti? c and technological innovation to facilitate intelligent pig farming, implementsa farming-recycling model where farm waste is recycled to promote harmonious coexistence between farming and theecological environment, and it invests in targeted poverty alleviation by incorporating anti-poverty objectives into theCompany’s principal business. While achieving better pe rformance results, Muyuan strives to promote economic, social andenvironmental bene? ts simultaneously.
Net pro? t:
6.336 billion
Year-on-year growth:
1,099.91%Annual processable feed:
7.26 million tons
Year-on-year growth:
30.80%
R&D investment amount:
112 millionYear-on-year growth:
22.26%
R&D personnel:
786 personsYear-on-year growth:
17.49%
Company Pro? le
Muyuan Culture
Achievements in 2019
Producer of high-quality pork; Promoter of social progress.Providing the public with safe and wholesome pork products; Promoting healthy industry development.Serving people with safe pork and letting them enjoy a rich life; Becoming a respectable company.
Position
Mission
Vision
Muyuan value formula
CreationPossessionValue
About Muyuan
Twenty-seven thousand and three
Twenty-nine thousand nine hundred and seventy-eight
Fifty thousand three hundred and nineteen
Seven hundred and twenty-three point seven four
1，101.11
1，025.33
Two hundred and forty point four five
Two hundred and ninety-eight point four two
Five hundred and twenty-eight point eight seven
One hundred point four two
One hundred and thirty-three point eight eight
Two hundred and two point two one
2017, 2018 and 2019
2017, 2018, 2019, 2017, 2018, 2019
2017, 2018 and 2019
Number of employees
Revenue (100 million)Total Asset (100 million)
Number of sold pigsin 10,000s
Sustainability Report 2019
Muyuan Foods Co., Ltd.
The Layout of Muyuan SubsidiariesHenanMuyuan Headquarter,60 Subsidiaries(Neixiang Muyuan,
Dengzhou Muyuan, Wolong Muyuan, Tanghe Muyuan, FugouMuyuan, Huaxian Muyuan, Qixian Muyuan, Zhengyang Muyuan,Tongxu Muyuan, Sheqi Muyuan, Fangcheng Muyuan, XihuaMuyuan, Shangshui Muyuan, Taikang Muyuan, Xichuan Muyuan,Ningling Muyuan, Xiping Muyuan, Fanxian Muyuan, SuyangMuyuan, Shangcai Muyuan, Muyuan Grain Trade, Luyi Muyuan,Pingyu Muyuan, Xinghua Biology, Hongxin Testing, MuyuanDevelopment, Muyuan Investment Promotion Development,Muyuan Meat , Zhengyang Meat, Xiayi Muyuan, XiangchengMuyuan, Anyang Muyuan, Shangshui Meat, Nanyang Muhua,Yanling Muyuan, Zhecheng Muyuan, Ruyang Muyuan, RuzhouMuyuan, Nanzhao Muyuan, Huaxian Muhua, Fugou Mu Hua,Ningling Muhua, Muyuan Maiming, Muyuan Pig Protection, GushiMuyuan, Qingfeng Muyuan, Puyang Muyuan, Zhenping Muyuan,Xixia Muyuan, Nanyang Musheng, Neihuang Muyuan, ZhengzhouMuyuan Digitization, Ningling Meat, Huaxian Meat, ZhengzhouGrain Trade, Shangcai Meat, Muyuan Intelligent Technology,Minquan Muyuan, Yongcheng Muyuan, Ruzhou Complex)Jiangsu27 Subsidiaries(Tongshan Muyuan, Guannan Muyuan, XinyiMuyuan, Shuyang Muyuan, Pizhou Muyuan, Haian Muyuan,Haizhou Muyuan, Donghai Muyuan, Hongze Muyuan, FuningMuyuan, Lishui Muyuan, Liuhe Muyuan, Jiangning Muyuan,Zhenjiang Muyuan, Suining Muyuan, Suyu Muyuan, QingjiangpuMuyuan, Huaiyin Muyuan, Baoying Muyuan, Gaogang Muyuan,Qixia Muyuan,Jiangyan Muyuan, Sheyang Muyuan, LianshuiMuyuan, Jinhu Muyuan, Wujiang Muyuan, Ganyu Muyuan)Shandong20 Subsidiaries(Caoxian Muyuan, Kenli Muyuan, ShanxianMuyuan, Dongming Muyuan, Mudan Muyuan, Xinxian Muyuan,Plain Muyuan, Huimin Muyuan, Qingyun Muyuan, ZoupingMuyuan, Shandong Muhua, Jimo Muyuan, Linqing Muyuan,Chiping Muyuan, Linyi Muyuan, Gaotang Muyuan, Dong' eMuyuan, Tancheng Muyuan, Caoxian Meat,Taierzhuang Muyuan)Anhui17 Subsidiaries(Yingshang Muyuan, Mengcheng Muyuan, Suixi
Muyuan, Fengtai Muyuan, Yingquan Muyuan, Jieshou Muyuan, SiCounty Muyuan, Huaiyuan Muyuan, Qiaocheng Muyuan, HuaibeiMuhua, Lixin Muyuan, Guzhen Muyuan, Yingshang Meat,WoyangMuyuan, Yongqiao Muyuan, Chaohu Muyuan, Sixian Meat)Heilongjiang13 Subsidiaries(Longjiang Muyuan, Lanxi Muyuan, Lindian
Muyuan, Mingshui Muyuan, Wangkui Muyuan, Fuyu Muyuan,Kedong Muyuan, Yi' an Muyuan, Gannan Muyuan, Mulan Muyuan,Muchen Livestock, Keshan Muyuan, Lindian Meat)
Hebei13 Subsidiaries(Guangzong Muyuan, Guantao Muyuan, Haixing
Muyuan, Xinhe Muyuan, Jizhou Muyuan, Xinji Muyuan, NingjinMuyuan, Pingxiang Muyuan, Jingxian Muyuan, Nanpi Muyuan,Hengshui Muyuan, Guyuan Muyuan, Zaoqiang Muyuan)Liaoning11 Subsidiaries(Tieling Muyuan, Jianping Muyuan, Fuxin
Muyuan, Yixian Muyuan, Tai' an Muyuan, Changtu Muyuan, HeishanMuyuan, Kangping Muyuan, Kaiyuan Muyuan, Tieling Meat, Taizihe
Muyuan)Inner Mongolia10 Subsidiaries(Naiman Muyuan, Aohan Muyuan, OngniudMuyuan, Kailu Muyuan, Ke’erqin Zuoyi Zhongqi Muyuan, Jarud QiMuyuan, Jalaid Qi Muyuan, Naiman Meat, Urad Qianqi Muyuan,
Kailu Meat)Shanxi12 Subsidiaries(Wenxi Muyuan, Wanrong Muyuan, Xinjiang
Muyuan, Yongji Muyuan, Daixian Muyuan, Fanshi Muyuan, Xia
County Muyuan, Yuanping Muyuan, Shenchi Muyuan, Hongdong
Muyuan,Hejin Muyuan, Wenxi Meat)The subsidiaries newly established in 2020 are marked in green.
As of the end of 2019, Muyuan’s business had covered 18 provinces and regions, 61 cities, 121 counties andregions throughout the country.Now, Muyuan’s business covers 24 provinces and regions, 94 cities, 195 counties and regions throughout thecountry.Jilin8 Subsidiaries(Nong' an Muyuan, Shuangliao Muyuan,Tongyu Muyuan, Qianguo Muyuan, Shuangyang Muyuan,Da' an Muyuan, Tongyu Meat Qian’an Muyuan)Guangxi7 Subsidiaries(Yinhai Muyuan, Liucheng Muyuan,
Binyang Muyuan, Xixiangtang Muyuan, Youjiang Muyuan,Xingbin Muyuan, Wuming Muyuan)Hubei8 Subsidiaries(Zhongxiang Muyuan, Laohekou Muyuan,Shishou Muyuan, Muxin Testing, Jiangling Muyuan, Gong' anMuyuan, Zaoyang MuyuanHuangmei Muyuan)
Shaanxi4 Subsidiaries(Dali Muyuan, Baishui Muyuan, ChencangMuyuan, Pucheng Muyuan)Sichuan3 Subsidiaries(Jintang Muyuan, Mianzhu Muyuan,
Qionglai Muyuan )Guangdong4 Subsidiaries(Muyuan Digital Technology, Leizhou Muyuan,
Yingde Muyuan, Dongyuan Muyuan)
Gansu2 Subsidiaries(Liangzhou Muyuan, Jingtai Muyuan)Yunnan1 Subsidiaries(Shilin Muyuan)Zhejiang1 Subsidiaries(Linhai Muyuan)
Hainan1 Subsidiaries(Haikou Muyuan)
Hunan1 Subsidiaries(Anxiang Muyuan)
Guizhou1 Subsidiaries(Dushan Muyuan)
Hong Kong1 Subsidiaries(Muyuan International)
Beijing1 Subsidiaries(Fangshan Muyuan)
Jiangxi3 Subsidiaries(Lean Muyuan, Nanchang Muyuan,
Yuanzhou Muyuan)
About Muyuan
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Muyuan strictly abides by the Company law of the People' s Republic of China, the Securities Law of thePeople' s Republic of China, the Code of Corporate Governance for Listed Companies, the Rules Governingthe Listing of Shares on the SME Board of the Shenzhen Stock Exchange, the Guidelines of the ShenzhenStock Exchange for the Standard Operation of Listed Companies, together with the relevant laws,regulations and speci? cations released by the CSRC. Muyuan continuously re?nes its corporategovernance structure including shareholders' general meetings, the Board of Directors (the “Board”), theBoard of Supervisors, management authority and responsibility, and operational standards, withconsideration to the Company’s actual situation, so that the corporate governance becomes more andmore e? ective.As of the end of the reporting period, the Company’s Board consisted of 7 directors, of which 3 wereindependent directors, accounting for over one third of the total number, and one was a female director.Members of the Board have backgrounds from various professions, and from management and ? nance,and can give professional opinions from di? erent perspectives. There are four special committees underthe Board, namely the Audit Committee, Strategy Committee, Nomination Committee, andRemuneration and Appraisal Committee, for the comprehensive and specialised operation andmanagement of the Company. The Board has clear division of duty and convenes meetings in accordancew ith the Rules and Procedures of Board Meeting. During the reporting period, the Company held 14Board meetings, deliberating carefully on various proposals and performing duties in a diligent andresponsible manner.Muyuan strictly regulates procedures for conveni ng, deliberating and voting at the general meetings,treats all investors fairly and honestly, and ensures that all shareholders, especially small and mediumshareholders, enjoy each right on an equal footing. During the reporting period, the Company held 7general meetings.During the reporting period, in strict compliance with relevant laws and regulations, as well as the Articlesof Association, Information Disclosure Management System, Investor Relations Management System andother relevant regulations, Muyuan ful?lled its obligations on information disclosure in a true, accurate,timely, fair and complete way, concerning the Company' s operations and matters signi? cantly a? ectingthe Company. Muyuan discloses information in newspapers including the Securities Times, ChinaSecurities Journal, Shanghai Securities News, Securities Daily, and CNINFO (www.cninfo.com.cn), thedesignated website for corporate information disclosure, to ensure that all shareholders of the Companyhave equal access to the information.The Audit Department of Muyuan is responsible for anti-corruption an d business ethics. Centring on the mission of“preventing risks, intensifying internal controls, optimising management and safeguarding operations”, it develops internalaudit speci? cations, sets up monitoring points for key business processes, and formulates a holistic audit and monitoringsystem by means of special audit, operation audit, investment audit and other forms, in order to keep an close eye on anypossible corruption in the course of business operations.
Muyuan takes initiative to create a clean and honest business environment to facilitate the Company' s long-term growth andemployees’ career development. Provisions on integrity and self-discipline are included in the Code of Conduct of MuyuanGroup, stating the “principle of ethics and compliance”, the “principle of no appropriation of public resources”, the “principle ofself-discipline and prudence”, the “principle of diligence and frugality” and the “principle of rigorous control and heavypunishment”, in an e? ort to proactively create a working environment and cultural atmosphere of integrity and self-discipline.The Audit Department, as the department in charge of anti-corruption, adopts the "zero tolerance" principle for corruption.Under the leadership of the Audit Committee, the Audit Department established the audit and monitoring system,anti-corruption system and punishment system, and improves the construction of reporting channels.Muyuan attaches importance to integrity promotion, and conducts training covering all employees and special training forhigh-risk positions. During the reporting period, we conducted 5 sessions of integrity training for high-risk positions, with a totalof 3,511 participants.On 21 April 2019, Muyuan launched the education conference "Be Clean and Honest" to underline integrity andself-discipline, in which the Chief Legal O?cer shared real stories to demonstrate the serious consequences ofbreaking laws and regulations, so as to further strengthen the integrity promotion and anti-corruption for the team.
Corporate Governance
Consolidating Governance
Anti-corruption and Business EthicsMuyuan promulgated the Integrity Reporting Management System and opened channels including e-mail,telephone, mailbox and o? cial accounts to the public to actively accept various reports.Upon receipt of a report, Muyuan will conduct an in-depth investigation and assess relevant internal controls toidentify possible de? ciencies. In the event of serious violations of rules and regulations or economic crimes, Muyuanwill transfer the liable persons to judiciary authorities.In addition, Muyuan strictly enforces the whistle-blower protection mechanism and keeps the whistle-blower' spersonal pro? le and the information provided con? dential to resolutely prohibit retaliating against whistle-blowers.
Muyuan Audit and Monitoring System
Improving the construction of reporting channels
Reporting E-mailsjb@muyuanfoods.com
Reporting Telephone
178-3775-1511
WeChat O? cial Account
Integrity Muyuan
Construction of integrity and self-discipline
Educational conference on integrity and self-discipline
Incorporating internal business audit, setup monitoring points in business processesfor real time monitoringEstablish and maintain the audit andmonitoring system to audit and monitorkey business processes
Audit DepartmentInternal Business AuditMonitoring Points and Risk Points
Monitoring
Reporting Mailbox
Muyuan Audit Department, Longsheng Industrial Park,Wolong District, Nanyang City, Henan Province, China.
About Muyuan
Directors: 7IndependentDirectors:3
BoardMeeting: 14
GeneralMeeting ofShareholders: 7
Sustainability Report 2019
Muyuan Foods Co., Ltd.
In the face of changes in the external businessenvironment and a series of contingencies, suchas ASF, COVID-19 and climate change, more andmore enterprises pay attention to environmentaland social risks arising in the course of theirdevelopment. While stakeholders care about the? nancial performance of enterprises, they arenow increasingly casting their eyes oncompanies’ non-? nancial performance. As theleading enterprise in the breeding industry,Muyuan actively identi?es its environmental andsocial risks and opportunities, and incorporatesthem into the Company' s business strategies,integrating business development with CSR andpromoting coordinated economic,environmental and social development.
ResponsibilityManagement
Sustainability Report 2019
Muyuan Foods Co., Ltd.
With reference to the business characteristics, business principles and corporate mission, as well as the UN' ssustainable development goals (“SDGs”), Muyuan has developed the CSR strategy featuring“5 Principles tostick to”.
Muyuan has gradually developed a social responsibility management framework consisting of six majorsocial responsibility management systems at “decision-making, organisational and executive levels".
Food safetySticking to scienti? c and technological innovationto lead the development of the industry, continuouslyengage in antibiotic-free breeding, and producesafety, healthy, nutrient and delicious food for thesociety.
Social Responsibility Strategy
Environmental protection
Sticking to the idea of “Five Steps of EnvironmentalProtection” to promote circular economy, carry outclean production, reduce air pollutants, and protectthe ecological environment.
Win-win cooperationSticking to the principle of “helping each other andupholding justice and fairness” to build a sustainableindustrial chain and achieve e? ciency and win-winbene? ts.
Employee careSticking to the idea of bringing bene? ts toemployees, helping them develop and realise theirlife values.Public welfareSticking to our values to build a sharing platform, make continuous progress, and stay absolutelyfocused for long-term growth.
Social Responsibility Management Framework
Establishment of a social responsibility management system
Social responsibility
organisationmanagement
Social responsibility
dailymanagement
Social responsibility
indicatormanagement
Social responsibility
informationdisclosure
Social responsibility
performance
appraisal
Social responsibility
capacitycultivation
The Board is the top decision-making body for CSR management. The Board isresponsible for reviewing, adjusting, and determining the Company' s majorsustainable development goals and plans, formulating annual CSR plans andreviewing annual CSR reports.
The Social Responsibility Department is the organisational level for socialresponsibility work. It is responsible for coordinating and integrating theC ompany’s internal resources to promote cross-department cooperation,clarifying social responsibility issues and work focus, as well as tracking andevaluating social responsibility performance of various departments andsubsidiaries.Muyuan’s subsidiaries and departments are re sponsible for execution of socialresponsibility work. In accordance with the requirements of socialresponsibility management system, they implement social responsibility dailymanagement within their scope of authority, upgrade the Company’s databaseof social responsibility indicators, and actively cooperate with the SocialResponsibility Department for social responsibility training and capacityenhancement for employees of respective subsidiaries/departments.
Decision-making
level
Organisational
level
Executive
level
Foodsafety
Environmentalprotection
Win-win
cooperation
Publicwelfare
Employeecare
Responsibility Management
Sustainability Report 2019
Muyuan Foods Co., Ltd.
In 2019, Muyuan addressed social responsibility related issues, with reference to the Company’s actual situation and themateriality analysis model, communicated with various stakeholders through a wealth of channels, and identi? ed material issuessigni? cant for both the Company and stakeholders in terms of "importance to the Company’s business" and "importance tostakeholders". Such issues are explicit ly disclosed in the Report and constitute the priorities of future social responsibility work.
As the leader in the pig industry, Muyuanis hoped to lead the industry to furtherdevelopment and growth and play amore important role in poverty alleviationas well.
— Industry association
In recent years, the Company has entered a track of rapid development, as a result, myincome level has kept rising, and employee bene? ts have become better and better. Inaddition, the Company provides us with many training opportunities that help me toachieve fast improvement. I gradually ? nd my own life value through my work inMuyuan and hope I could grow up with Company in the future to create value andserve society.
— Employee
Materiality Assessment
Identifying issues26 social responsibility issues related to Muyuan were identi? ed with consideration toexternal sustainable development reporting standards, external ESG rating focuses, and theCompany’s business characteristics and strategic goals.
Conducting surveysMuyuan’s key stakeholders were identi? ed and invited to evaluate materiality of the issues byvirtue of surveys to obtain their opinions and suggestions.Con? rming results2,811 valid questionnaires were collected. Muyuan summarised the results, analysed themateriality of each issue, formulated the materiality assessment matrix, and determined thematerial issues in conformity with the Company’s actual situation based on managementfeedback and experts’ advice.
The importance to the Company’s businessThe importance to stakeholders
Materiality assessment result
Economy
Society
AreaNo.Issue
Society
Environment
AreaNo.Issue
Promoting local employmentDriving industrial clustersCorporate governanceFinancial performanceOccupational health and safetyCaring for and respecting e mployeesProtection of employees’ rights and interestsEmployee training and developmentBuilding a sustainable supply chainImproving supply chain managementScienti? c and technological innovationSafeguarding animal welfareEnsuring food safety
Providing high-quality porkPreventing epidemicsCustomer services and complaint handlingInformation security and customer privacy
Label and intellectual property right management
Compliant operation with integrityFacilitating poverty alleviationSupporting community constructionEmission managementBuilding a circular economyBiodiv ersity and land utilisationReinforcing water resource managementEnergy saving and carbon reduction
Through collaborations with Muyuan, wehave realised that Muyuan has had a strongand positive brand e? ect of socialresponsibility in the areas including localemployment, poverty alleviation, epidemicprevention, actual contributions to driveindustrial clusters, etc. We sincerely hope thatMuyuan will make persistent e? orts andobtain further achievements!
— Supplier
Responsibility Management
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Muyuan highly values communication with stakeholders. We actively communicate with various stakeholders through variouscommunication channels to unders tand their expectations and demands for Muyuan and incorporate their concerns andrequirements into the Company' s sustainable development issues. In addition, Muyuan responds to stakeholders’ expectationsand concerns with practical actions to promote mutual growth.
Stakeholder Communication
StakeholdersMajor issuesCommunication channels
Promoting local employmentDriving industrial clustersCorporate governanceSafeguarding animal welfareCompliant operation with integrityEpidemic prevention
Cooperation in poverty alleviation projectsProject approval and supervisionDaily communication and debrie? ngHigh returns on investmentFinancial performanceScienti? c and technological innovationCorporate governanceEnsuring food safetyProviding high-quality pork
Regular reporting and information disclosureGeneral meetingInvestors surveysPerformance demonstrationNews mediaSocial media
Governmentsand regulatorsShareholdersand investors
Occupational health and safetyCaring for and respecting employeesProtecting employees’ rights and interestsEmployee training and developmentConstruction of corporate culture
Annual summary and commendation meetingCorporate cultural activitiesRegular trainingEmployees
Compliant emissionBuilding a circular economyBiodiversity and land utilisationWater resource managementEnergy saving and carbon reduction
Surrounding environment monitoringCommunication with Environmentalprotection departmentFarming-recycling model promotion
Environment
Building a circular economySafeguarding animal welfareScienti? c and technological innovation
Selective breedingIndustry exchangePromote industry development
Industrialassociations
Consumers
Re? ning supply chain managementScienti? c and technological innovationDriving industrial clustersBuilding a sustainable supply chainCustomer services and complaint handlingInformation security and customer privacy
Procurement activitiesSupplier trainingProcurement and sales platformCustomer call-back and satisfaction survey
Value chain
partners
Promoting local employmentDriving industrial clustersFacilitating poverty alleviationSupporting community construction
Field study and visitsCharitable activitiesCommunity communication and exchange activitiesMedia communication
Community
Contributing tothe UN SDGs:
Contributing toCOVID-19 Control
Muyuan Co., Ltd., together with Qin Yinglin, Chairman and Qian Ying, his wife, donated RMB 200 million for COVID-19 control and prevention in China.Transformed and contributed 38 negative pressure ambulances.Donated 4 extra-corpor eal membrane oxygenation (ECMO) systems toZhengzhou Qiboshan Hospital.Contributed tens of millions of face masks, millions of sets of protective suitsand goggles, and hundreds tons of disinfection materials to hospitals,prevention & control headquarters and control points in 20 provinces, 68cities, 156 counties.O? ered special insurance for epidemic control with insurance coverage of
50 billion to over 100,000 people working on the front lines ofepidemic control.Provided daily necessities and anti-epidemic materials for over 400, 000families through the e-commerce platform “Ju’ai Youxuan”.
Highlights
Topic 1
Responsibility Management
Sustainability Report 2019
Muyuan Foods Co., Ltd.
The COVID-19 broke out unexpectedly at the beginning of2020. Facing such severe situation, Muyuan established theCOVID-19 Prevention & Control Headquarters with ChairmanQin Yinglin as the commander in a timely manner tocommand the epidemic prevention and control. Over 3000employees fr om the headquarters and subsidiaries responseactively to the call of the Company. They voluntarily gave uptheir Spring Festival vacation and participat ed as volunteers tocontribute to the battle against the pandemic, demonstratingresponsibilities as part of Muyuan.
To ease the unemployment after the epidemic, Muyuanactively carried out “COVID-19 Control and EmploymentPromotion” through online presentations, video interviews, etc.After rapid changes in the recruitment model, Muyuanprovided 100,000 jobs nationwide, which helped with theemployment of migrant workers returning home and newgraduates. As at the release of the report, Muyuan hadorganised a total of 1,130 special recruitment programmes,getting more than 30,000 new recruits.In May 2020, a large-scale online recruitment campaign forpoverty alleviation, the “National Employment Action inSpring”, was o? cially launched. Muyuan advertised morethan 10,000 jobs to candidates on the live broadcast, attractinghundreds of thousands of jobseekers from all over the country.
Under the premise of doing its best to control the COVID-19,Muyuan strictly implemented the government’s policyrequirements, and considered its own conditions forcomprehensive and conscientious resumption of work andproduction, so as to guarantee pig supply. In order to reducethe employees’ infection risk on their way back to theworkplace, Muyuan organised “chartered planes” and“chartered trains” for them. Through e? cient communicationwith local governments and airlines, the Company organisedchartered plane from Nanyang to Changchun to helpemployees in the Northeast return to work. Meanwhile, incollaboration with Nanyangdong Railway Station, theCompany hired a chartered high-speed train fromNanyangdong to Fuyangxi to transport employees whoneeded go to Kaifeng, Shangqiu, Anhui Fuyang, etc., as well asconstruction workers working on the farm to return to work.In order to safely isolate patients in transit, Muyuan set up anemergency working group on January 31 to quickly initiateR&D and production. By utilising the air ? ltration and negativepressure ventilation technology developed for ASF control, theworking group quickly transformed negative pressureambulances, one of the key demand protection materialswhich can minimize the probability of cross infection with thepersonnel outside the medical cabin. As of the release of thereport, 38 negative pressure ambulances had beentransformed and contributed to hospitals in Hubei Provinceand Henan Province respectively, which played an active role inCOVID-19 control.
Changing the recruitment model to actively promote employment
Ensuring employees' safety and health on their way back to work
Giving full play to our advantages in independent R&D to empower COVID-19 control with technology
Showing corporate responsibility in times of crisis, uniting as one to ? ght against the pandemic
In February 2020, the battle against COVID-19 was at a criticalstage. The supply of prevention materials was tight whereasthe demand was strong. In order to guarantee s upplies, exceptfor donating masks, protective suits and other protectivematerials in stock, Muyuan also actively organised theProcurement Department to open overseas procurementchannels. By making full use of its global procurementnetwork, Muyuan purchased control supplies and equipmentfrom multiple countries, and provided to those areas withsevere outbreaks free of charge. In early February, Muyuan
After learning that Zhengzhou Qiboshan Hospital, a newly established hospital designated for COVID-19 treatment in Henan,lacked medical equipment, Muyuan immediately arranged the Procurement Department to purchase and donate 4extra-corporeal membrane oxygenation (ECMO) systems through various channels.
Leveraging corporate resources to guarantee supplies
“Today, we took a chartered plane arranged by the Company to our workplace from 2,000 kilometres away, which has solved our problem on returning to work. Sincerely, we thank the Company for its considerateplanning and arrangement, and I feel so proud of being a member of a company with strong employee careand powerful strength. After returning to work, I will race against the time to make up for the lost time, workhard to raise pigs and manufacture more wholesome pork, so as to ensure people can have wholesome porkduring the COVID-19 outbreak.”
— Presentation by return-to-work employee representative
Contributing to COVID-19 Control
In the light of the needs in epidemic control, Muyuan utilised and improved the infrared temperature measurement systemindependently developed in the production process. The temperature could be me asured when a person entered themeasuring chamber, without any close contact with the sta? . In the case of an abnormal temperature, the system wouldautomatically alarm and display personnel identi? cation information, which improves the testing e? ciency while reducing therisk of exposure to infection.
purchased masks, protective suits and other scarce prevention materials through various channels, and quickly sent them toHubei Province, Henan Province, Guangdong Province and other areas with severe epidemic situation, which eased the"urgent need" of front-line sta? .
Sustainability Report 2019
Muyuan Foods Co., Ltd.
In order to relieve some worries of front-line workers, Muyuano? ered “special insurance for epidemic control” with insurancecoverage of 50 billion, covering over 100,000 medical workers,police o? cers, civil servants and Party members, and volunteers inNanyang and 1,281 members of Henan Medical Team supportingHubei Province and Nanyang City, Henan Province.Muyuan e-commerce poverty alleviation platform "Ju’ai Youxuan" is anon-pro?t and public welfare e-commerce platform under MuyuanIndustrial Group Co., Ltd.. It aims to fully bene? t users and is requiredby Muyuan Group that the annual net pro? t rate not exceed 1%. Theplatform helps poor households increase their income and then getrid of poverty through consumption poverty alleviation; on the otherhand, it creates a remarkable e-commerce platform so that peoplecan enjoy an abundant life ..
Muyuan Co., Ltd., together with its Chairman Qin Yinglin and Qian Ying, his wife, co-donated 200 million yuan, including 100 million yuan donated by Qin Yinglin and his wife Qian Ying to the COVID-19 prevention and controlwork. The donation has assisted more tha n 3000 medical institutions and prevention checkpoints in 68 cities and 156counties in 20 provinces.
Some entities beyond the Scope of the Report have also made contributions to Muyuan' s ? ght against COVID-19,speci? cally involving Muyuan Industrial Group Co., Ltd., Muyuan e-commerce poverty alleviation platform "Ju’aiYouxuan" and the major participation of its chairman Qin Yinglin and his wife Qian Ying. The above speci? c practicesare explained as follows.
Facilitating channels for living supplies to safeguard normal supply
Contributing special insurance with insurance coverage of 50 billion for over 100,000heroes ? ghting against the epidemic
With the spread of COVID-19 all over the globe, Muyuan IndustrialGroup Co., Ltd., proactively purchased preventive supplies to assistcountries overseas seriously impacted by the epidemic and supportthe work of COVID-19 control condu cted by local hospitals and theoverseas Chinese. At present, Muyuan’s overseas contributiondestinations have covered Asia, Europe, America and Africa. Byproviding masks, protective suits and other protective supplies fororganisations in nearly 30 countries such as Russia, Pakistan, Italy,Germany, UK, South Africa, Muyuan has e? ectively supported theCOVID-19 control work in a number of countries overseas.
Love knows no borders : organising protective supplies to rush to the rescue of countries overseas
Providing donations actively
targeted poverty alleviation
For the sake of cutting o? the transmission to the utmost and guaranteeing the supply of living supplies, Muyuanguaranteed the daily needs of more than 400, 000 families and provided free delivery for their daily necessities andprevention materials such as fruits and vegetables, meat and medicine through “Neixiang County Supply Zone” and“Nanyang Urban Supply Zone” on the e-commerce platform “Ju’ai Youxuan”. At the same time, the platform provided 10masks for free to each family in Nanyang City and Neixiang County, and a total of over 300, 000 masks were provided.Muyuan actively responded to the call of the state and urgently guaranteed the supply across the border. From February11 to Feb ruary 20, Xinghua Equipment, a subsidiary of Muyan, took only 9 days to complete the commissioning of the ? rstproduction line, which can produce 20,000 masks every day. On March 15, the second and third production lines weresuccessively debugged, and the daily output of masks reached 150,000, which played an important role in ensuring thesupply of prevention materials.
Further Promotion ofTargeted Poverty AlleviationTopic 2
Highlights
Contributing tothe UN SDGs:
As of the end of 2019, Muyuan had invested 22.82 billion in 71 nationaland provincial poorer counties, realising the employment of more than
30,000 people in those counties.
As at the end of the reporting period, the “5+” asset-based income model had beenextended to 49 counties (regions) in 12 provinces, including Lindian inHeilongjiang Province and Yingshang in Anhui Province, with targeted e? orts toachieve poverty alleviation of 349,932 people from 139,827 households.As at the end of the reporting period, our subsidiaries had held 137 job fairs,especially for employment transfer, and recruited 1,024 people fromregistered poor households.The e-commerce platform “Ju’ai Youxuan”, which is owned by the parentcompany Muyuan Group, was used to conduct poverty alleviation throughconsumption. More than 160 special agricultural and sideline products from
27 poor counties in 13 provinces (regions) were put for sale online, with a
transaction of over 40 million. From these e? orts, 6,916 registered poorhouseholds bene? ted, and 14, 095 people increased their incomes.Muyuan supported college students in 14 consecutive years for educationpoverty alleviation. A total of 17, 245 students from 83 counties (regions)in 13 provinces bene? ted from this.Muyuan has designed a poverty alleviation management system, which canregister information, update status, quantify poverty alleviation measures ande? ectiveness of 140,000 households and more than 300,000poverty-stricken people who have established ? les and registered cards. It hasrealized the information-based management of poverty alleviation work.
Contributing to COVID-19 Control
Sustainability Report 2019
Muyuan Foods Co., Ltd.
2019 was, in all respects, a crucial year for building a prosperous society, and marked the decisive stage of the ? ght againstpoverty. Conscientiously implementing the important strategic concepts of the Party Central Committee on poverty alleviation, Muyuan actively integrated the enterprise’s development strategy into the national strategy, and continued to make use of itsadvantage as a leading agricultural industrialisation enterprise. Moreover, through cooperation with multiple parties to expandthe “5+” poverty alleviation model, and to advance the model of “3+N”, Muyuan also consistently explored a long-termmechanism for stabilising poverty alleviation, and strived to improve the self-restoration capacity in poverty-stricken areas, so asto improve the e? ectiveness of, and consolidate the achievements of, poverty alleviation, thus assisting the battle againstpoverty.
On 1 October 2019, Mr. Qin Yinglin, Chairman of Muyuan, along with representatives from all over China who have madeoutstanding contributions to poverty alleviation, participated in the parade on the 70th Anniversary of the Founding of ThePeople’s Republic of China. They were on the parade ? oat in the formation named “Poverty Alleviation”, inspected by themotherland and the people.
Wang Tinghui, living in Huanglian Village, Yuguan Town,Neixiang County, Henan Province, came from an registeredpoor household. Due to mental disability, his wife was onlong-term medication. Wang Tinghui also su? ered from lumbardisc herniation and was unable to do heavy work. And hisdaughter just entered the fourth grade of primary school. It wasdi? cult to lift such a household out of poverty due to heavyfamily burden.
In 2019, the poverty alleviation model of “5+” asset-based income was implemented in 10 counties (regions) in 4provinces, including Xinhe County, Hebei Province and Jingtai County, Gansu Province, etc. It has increasinglydemonstrated strong ability to drive out poverty and has been a signi? cant demonstration of the e? ect of povertyalleviation. As at 31 December 2019, the poverty alleviation model of “5+” asset-based income had been promotedin 49 counties (regions) in 12 provinces, including Lindian County, Heilongjiang Province and Yingshang County,Anhui Province, etc. Through this e? ort, we provided targeted poverty alleviation assistance to 349,932 people from139,827 registered poor households and brought an accumulated 540 million to them. As at the release of thereport, bene? ting from the poverty alleviation model of “5+” asset-based income, 38 counties in 10 provinces hadwon the battle against poverty. And this model had become one of the most extensive poverty alleviation models inthe cou ntry, covering the largest number of poor households and involving the largest number of ? nancialinstitutions as well.
Since 2016, Muyuan has cooperated with the Neixiang CPC Committee, county government, the China Development BankHenan Branch and other ? nancial institutions to implement the poverty alleviation model of “5+” asset-based income, namely“government + ? nancial institutions + leading enterprises + cooperatives + poor households”. We embedded thedevelopment of poor households in the industrial chain of Muyuan, which have e? ectively solved the poor households’problems of lack of funds, technology, managerial expertise and projects. As a result, we have realised a leap from 0 to 1, awealth base from 1 to N and the ability of poor households to eliminate poverty. On the basis of the "5 +" poverty alleviationmodel, Muyuan innovated and designed a new mode of "County-Township-Village" three-level cooperative operation. Thenew mode gradually develops the cooperativ e into a new rural business entity with assets, income and pro? t and realizes theincrease of collective income. At present, there are 15 township level Ju’ai cooperatives and 279 village level cooperatives inNeixiang County. Muyuan has signed grain order contracts with 120 v illage level cooperatives, labor contracts with 4 Townshiplevel cooperatives, and organized more than 3,000 people to participate in Muyuan's national project construction.The three-level cooperatives operation is the transition stage from poverty alleviation to rural revitalization. The mo deupgrading and business innovation made by Muyuan in the ? eld of poverty alleviation further consolidated the povertyalleviation e? ect, improved the quality of poverty alleviation, laid the industrial foundation for rural revitalization, andenhanced the appeal, cohesion and combat e? ectiveness of grass-roots Party organizations.
The agriculturalindustry is worthtrillions. With greatroom fordevelopment, theindustry istransforming intoa large-scale,standardised, andintelligentindustry.
Poverty Alleviation of “5+” Asset-based Income
Advantages of the poverty alleviation model of 5+ asset-based incomeGood industryGood enterpriseGood assetsGood mechanismGood protection
A leading listedagribusiness withhigh pro? tability,growing operatingresults, largemarket value andgood credit.
Environmentallyfriendly,energy-saving,smart, e? cientand advancedfacilities, withuseful life up to 30years, help achievesustained andstable operations.
Stable income.Cooperativespro? t from assetleasing withrelatively lowmarket risk; poorhouseholdsreceive quarterlydividends, with astable source ofincome.
Freedom todispose of assetsas seen ? t. Assetsare negotiablewith high value inuse and areprincipalguaranteed.
Alleviating poverty through “5+” asset-based income
Taking into consideration the reality of the situation, the county government relocated Wang Tinghui’s family by movingthem into a new bungalow from the original old truss house. Besides this, Muyuan o? ered him a public welfare post atthe 17th branch, with a monthly salary of 2,000, i.e., an annual income of up to 24,000. And meanwhile, as a member ofthe Ju’ai Cooperative, he also bene? ted from the “5+” poverty alleviation model, getting an annual rent share of 3,200. Inaddition, he was able to receive 3,000 annually based on the photovoltaic poverty alleviation project. Owing to thesemeasures, Wang Tinghui could earn more than 30,000 a year, and was successfully lifted out of poverty.Wang Tinghui was diligent and hardworking. In his spare time, he also bought fruit trees with the dividends paid to himand planted them over several mu of his own land (15 mu =1 acre). He said, "as my family is getting better o? , I' m in anincreasingly better mood."
Further Promotion of Targeted Poverty Alleviation
Sustainability Report 2019
Muyuan Foods Co., Ltd.
On 9 October 2017, Mr. QinYinglin, Chairman ofMuyuan, won theContribution Award of theNational Poverty AlleviationAward
The poverty alleviation model of “5+”asset-based incomeobtained the attention and recognition of the UnitedNations Development Programme. In 2017, Muyuan,together with the Neixiang County government, conductedin-depth exchanges with the United Nations DevelopmentProgramme to discuss the possibility of, and develop aworking plan for, establishing a “Poverty Reduction andSustainable Development Demonstration Zone” in Neixiang,which could promote the development of Neixiang Countyin an all-round way on the basis of international resources, and expand the global impact of the “5+” poverty alleviationmodel through asset-based income. On 13 January 2019, the
While continuing to promote the “5+” poverty alleviation model, Muyuan also actively pushed on the “3+N” poverty alleviationmodel based on the guidance of Mr. Liu Yongfu, director of the State Council Leading Group O? ce of Poverty Alleviation andDevelopment. The “3” refers to asset-based income, transfer of employment (to areas with higher job availability) and labouroutsourcing. “N” refers to various assistance models including poverty alleviation through consumption, ? nance, order-sourcingand photovoltaic projects.As at 31 December 2019, Muyuan has invested 22.82 billion in poverty alleviation industries in the relief programmes of 71national and provincial poverty-stricken counties, realising the employment of more than 30,000 people in poor counties. Thesubsidiaries of Muyuan had held 137 job fairs, especially the transfer of employment, and o? ered jobs to 1,024 people fromregistered poor households. Meanwhile, some labour services were contracted to Poverty Relief Cooperative by Muyuanaccording to operational needs, including sporadic projects, returning liquid fertilizer to ? eld, security tasks, cleaning andgreening, etc. The Poverty Relief Cooperative operated according to Muyuan’s needs to gain income and arrange jobs forquali? ed registered poor households, which helped them to gain income and enhanced their own ability for overcomingpoverty and increasing income.
Combination of Various Assistance Models
Creating a “Poverty Reduction and Sustainable Development Demonstration Zone”
Mr. Qin Yinglin, Chairman of Muyuan, and Mr. Yang Shuguang, the deputy secretary of theNeixiang CPC Committee and county chief won the National Poverty Alleviation Award
On 17 October 2019, Mr.Yang Shuguang, deputysecretary of the NeixiangCPC Committee and countychief, and the chief designerof the “5+” model, won the“Advanced PersonalInnovation Award of the2019 National PovertyAlleviation Award”.
Based on “Ju’ai Youxuan” , an e-commerce platform owned by Muyuan Group andadopting the model of “e-commerce platform + poor households + high-qualityproducts”, Muyuan expanded the online sales channels of agricultural productsfrom the poverty-stricken areas to improve the income of poor households.As of the e nd of the reporting period, more than 160 special agricultural andsideline products from 27 poor counties in 13 provinces (regions) had been put onsale online, with a transaction total of over 40 million. From these e? orts, 6,916registered poor households bene? ted, and 14,095 people increased their incomes.
Poverty alleviation through consumption
Poverty alleviation through ? nance
Poverty alleviation through orders
Poverty alleviation through photovoltaic projects
Muyuan invested 5 billion to set up the Zhongzheng Jiaotong PovertyAlleviation Industry Fund, targeting 832 national key counties for povertyalleviation and contiguous counties which share special di? culties. On this basis, Muyuan focused on investing in enterprises in poverty-stricken areas and thoseable to provide industrial coordination to poor counties, so as to improve theself-restoration capacity in poverty-stricken areas, and further motivate localeconomic development.Muyuan has driven cooperative enterprises to jointly carry out povertyalleviation work by means of targe ted procurement and increasing orders.Muyuan cooperated with Henan Tianman Clothing Co., Ltd. and adopted thebusiness model of "company + poverty alleviation workshop + poorhouseholds" based on Muyuan' s orders. It invests in the establishment of branchfactories and processing workshops in Neixiang County, driving more than 400left behind women to work, including 28 registered poor women, to e? ectivelyhelp poor families increase their incomes.As of the end of the reporting period, Muyuan had built 20 poverty alleviationworkshops in the poverty-stricken villages of Neixiang County through thismodel, attracting 522 poor persons for employment.In cooperation with the local government, Muyuan handed over the roofs andvacant space on the farms to the local government for the purpose of developingphotovoltaic poverty alleviation project s in Neixiang of Henan, Tongshan of Jiangsu,and Laohekou of Hubei, etc. Distributed to each village according to the equityproportion, the project income was used to increase the collective income of thevillage and the income of low-income farmers. As of the end of the reporting period,the projects’ total scale had reached 31.04 MW, covering about 9,700 poorhouseholds, with an average annual net income of about 3, 000 per household."Ju’ai Youxuan" platform is a platform of Muyuan Industrial Group Co., Ltd., which is beyond the Scope of the Report.
? rst county-level poverty reduction project of the United Nations Development Programme – the three-year “Neixiang CountyPoverty Reduction and Sustainable Development Demonstration Project” was o? cially launched. And at the same time, bysetting up the Women’s Development Fund, small loans were provided to impoverished women who had demonstratedentrepreneurial willingness, to support them to carry out income-generating activities, improve the quality of their family life,and raise women’s awareness of independence.
Further Promotion of Targeted Poverty Alleviation
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Neixiang County was a national-level poverty county. Under challenging natural conditions, farmers had little hope ofincreasing income or poverty alleviation. Dong Jingyan, living in Dongtang Village, Tuandong Town, Neixiang County, camefrom a registered poor household. Due to a surgery on his leg, Dong Jingyan was unable to do heavy work. Life was sodi? cult, with little chance of escaping poverty.
As a large-scale agricultural enterprise born and raised in “agriculture, rural areas and farmers”, Muyuan has close ties with farmers. Sincethe CPC Central Committee put forward its strategy of poverty alleviation, by making full use of our resource advantages and industryboosting capabilities as a leading enterprise and listed company, Muyuan has actively explored and implemented practical povertyalleviation methods, and committed itself to making its dominant industry into the nation’s largest poverty alleviation industry.Therefore, more and more poor households can achieve a steady increase in income and poverty alleviation is gathering pace. As of 31May 2020, Muyuan had invested 30.097 billion in 79 national-level and provincial-level poor counties, among which, 47 national-levelpoor counties had been lifted out of poverty, and 25 out of 32 provincial ones had won the battle against poverty.During the crucial period of poverty alleviation, Muyuan will continue to serve the overall national poverty alleviation work, respond tothe call for targeted poverty alleviation, and give full play to its industry-driven advantages. Furthermore, it will help more poor peopleout of poverty by actively carrying out industrial poverty alleviation, employment poverty alleviation, etc. In doing so, it can assist to winthe battle against poverty and make greater contributions to building a prosperous society in all respects and realising ruralrevitalisation.
“Ju’ai Digital Technology” won the title of Advanced Private Enterprise in the“Business to Help Village” (B2V) poverty alleviation campaign
In December 2016, Muyuan provided poor households in Neixiang County with postsincluding pig breeder, community cleaner, logistics handyman, etc., and set up publicwelfare posts for incapable labour forces. Besides, for those su? ering special conditions,family dormitories were specially arranged near the farm. “Now I am a cleaner on the farm, and my work also includes watering and weeding. I am on a monthly pay of about 3,000. Inaddition to dividends from the Ju’ai Cooperative, I can earn nearly 40,000 a year! ” DongJingyan said feelingly, he and his wife had already “made the farm their home”. Now, DongJingyan has picked up con? dence in life, “I am so eager to earn more to make life morecomfortable and a? ord better education for my children. I would like to express my thanksto the government and Muyuan for giving me this opportunity!”
Muyuan was shortlisted in the ? rst selection of Excellent Cases of Targeted PovertyAlleviation by Chinese Enterprises
In addition to devoting itself to poverty alleviation, Muyuan also actively led othersubsidiaries of Muyuan Group to jointly carry out poverty alleviation activities. HenanJu’ai Digital Technology Co., Ltd., a wholly-owned subsidiary of Muyuan Group, set upa special product column on the e-commerce platform “Ju’ai Youxuan” for poor areas, to make a contribution to the consumption poverty alleviation e? orts.In October 2019, it was awarded the honorary title of Advanced Private Enterprise inthe “Business to Help Village” (B2V) poverty alleviation campaign for its remarkableachievements in stimulating poor households to increase income.
On 31 March 2019, the press conference of the “Excellent Cases of Targeted PovertyAlleviation by Chinese Enterprises (2018)”, jointly sponsored by the State CouncilLeading Group o? ce of Poverty Alleviation and Development and the China SocialResponsibility 100 Forum, was held in Beijing. Muyuan' s poverty alleviation e? ort -"Making Our Main Business Poverty-Alleviation and Incorporating Poor Householdsto Lift them out of Poverty" was selected as part of the Top 50 Model Cases ofTargeted Poverty Alleviation by Chinese Enterprises (2018).
In 2019, the number of market hogs reached 10,253,300which provided656,000 tons of safe and wholesome pork to the market, accounting for
1.55% of the national supply and meeting 16.93 million people’s
demands for pork.In order to e? ectively prevent ASF, Muyuan quickly responded and established60 laboratories all over the country to provide testing services to other smalland medium-sized farmers and in dividual farmers in the industry.In February 2019 (outbreak period of ASF), to enhance the whole industry’scon? dence in ? ghting ASF, Muyuan held an international exchange meeting onASF and invited domestic and foreign experts to share experience. This meetingimproved the industry’s o verall epidemic prevention level and promoted industryprogress.Mr. Qin Yinglin, deputy to the National People’s Congress and Chairman ofMuyuan, put forward the Accelerating the Rapid Transformation and Upgradingof the Breeding Industry to Achieve Sustainable Development Proposal at theSecond Se ssion of the 13th National People’s Congress of the People’s Republic ofChina. The proposal was then specially replied to by the Ministry of Agricultureand Rural A? airs.
Provide posts to ignite hope
Some entities beyond the Scope of the Report have also made signi? cant achievements in poverty alleviation, speci? callyinvolving Muyuan Industrial Group Co., Ltd. and Henan Ju’ai Digital Technology Co., Ltd., and are explained as follows.
Industrial Upgrading ofASF Prevention
Topic 3
Contributing tothe UN SDGs:
Highlights
Further Promotion of Targeted Poverty Alleviation
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Since the ? rst outbreak in China in August 2018, the situation of ASF control and prevention is still complex and severe. Muyuanactively responded to the national guidelines and executed relevant nat ional and local government requirements. Muyuancontinually carried out control training sessions through cooperating with the local governments in the places where subsidiarieswere located, and jointly developed and implemented the ASF control program to prevent ASF in a strict manner.
Facing the severe situation of ASF, Muyuan promptly established a biosafety leading group with a senior executive as the leader. Byestablishing an epidemic control system and standard pr ocedures, Muyuan guided biosafety trainings and carried out relevantsupervision and inspection.
Following a three-level AFS control and prevention system, Muyuan established a comprehensive biosafety managementsystem, formulated standard operating procedures such as the Hygiene Management Standards on the Farm, Guidance onDisinfection Measures for Water Sources on the Farm, Production Sta? Code of Conduct for Biosafety, etc. Muyuan carried outvarious biosafety trainings to enhance safety awareness in an all-round way. At the same time, Muyuan introduced the biosafetyassessment system to quantify each farm’s risks and produce visualised results, greatly improving the management e? ciency.
Boar/Weaned pigSemenPig shedWater sourceFeedAirPersonnelMaterialsIncoming vehicles
Improving the Control System
Entrance management
elements
Farm managementelements
Exit managementelementsRenovation and upgrading ofhardware facilitiesUpgrading of personnel,vehicles, materials and toolsmanagementMonitoring and testingMinimum cell management
Sales of market hogsTransfer of boars andweaned pigsTransportation of deadsick pigsTransportation ofmedical wastesTransportation of domesticand production wastes
Three-level ASF Control and Prevention System
In the face of AFS, Muyuan immediately tried multiple plans to improve the biosafety system: implemented three-level (farms -surrounding areas – ? elds) prevention and inspection; implemented ? ve-level (o? -site – site – partition – row building – unit –fence) entrance disinfection; employed a six-hour system through anomaly detection-sampling- submission-detection-decision; adopted seven-level (highway/national highway/provincial highway – county road/Township Road/Village Road – entrance road -?eld road – pig-driving road – common road – unit corridor) road disinfection and sterilization; exercise eight supporting facilities(feed factory – disinfection station – isolation point – general warehouse – laboratory – isolation house – harmless centre- inspectioncentre) supervision; carry out management at 15 cycles risk prevention and control elements (Boar/Weaned pig- semen-pigsheds/water source-feed-air/personnel-materials-vehicles/road-load-out site- disease/ pig manure- pest infestation- deliberatepoisoning), comprehensively upgrade hardware to realize air ? ltration, precise ventilation, air sterilization, pipe chain feeding,water ultra? ltration, centralized decontamination, and robot inspection and ? nally created three-prevention (anti-disease,anti-odour, and anti-ASF) pig farms. Meanwhile, Muyuan comprehensively adopted the closed air ?lter vehicles as pig transportvehicles, which make no pollution along the way. Through upgrading the equipment such as "three-prevention pig farms" and"air ? ltration vehicles", Muyuan has realized a comprehensive control over the feeding, living and transportation of pigs, andcomprehensively reduced the risk of ASF infection.
Comprehensive Innovation and Upgrading
Key points of improvement
Speci? c measuresExampleFeed sterilisation
under hightemperature,Intelligent scheduleand transportation
Feed production is guided by intelligent platform and feedprocessing center. Feed will be sterilised at at 85°C duringproduction; the intelligent scheduling system will then mixthe produced feed in the pipeline and airtight deliverthem to the demand unit. Through the intelligent feedingsystem, the whole process is unmanned.
Thoroughdisinfection ofdrinking water
Ensure healthy drinking water and reduce the risk ofexposure to diseases by thorough disinfection of watersources.
Smart and precise
ventilation
Enable separated ventilation for every single sow andevery single shed for hogs and avoid air crossing by smartand precise control.
E? cient fresh air
? ltration
E? ectively block ASF, blue-ear disease and other viruses inthe air outside of the hog house by 4 levels of air ? ltration.
Air sterilisation anddeodorisation
Automatically adjust the volume of water and deodorantconcentration according to external climatic conditions,such as temperature, humidity, air pressure and otherenvironmental parameters, to ensure no impact of externalfactors on the deodorisation e? ect.E? ects of the deodorisation system:
1. Dusting e? ciency: 70% (comprehensive e? ciency of
PM2.5 and PM10)
2. Sterilisation e? ciency: 93%
3. Deodorisation e? ect: Level 0 (no odour) within 1 meter
of the exhaust end
Application of smart
equipment,unmanned operation
Realise smart breeding and unmanned operation basedon smart platform development, smart equipmentapplication and AI application, to reduce human-pigcontact and the risk of disease transmission.
Level 1Level 2Level 3
Joint prevention and control with governmentdepartments in chargeSafety control network in bu? er zonesBiosafety control network in core areas
Biosafety Leading Group
Vehicle managementHarmless waste treatmentWater source monitoringRaw grain procurement and feed supplyLocal farmer training and supportProcurement and distribution managementPersonnel ? ow managementPig breeding managementDevelopment and personal safety
Load-out site forsaleRoad surfaceEpidemic diseasePig manure andurinePest infestationDeliberatepoisoning
Active Prevention of ASF
Sustainability Report 2019
Muyuan Foods Co., Ltd.
In addition to its own control work, Muyuan also actively carried out various activities, including discussing ASF controlmeasures with industry peers, sharing the unique experience of Muyuan, helping small and medium-sized farmers, so as topromote the development of the entire industry.
To facilitate the transformation and upgradingof the breeding industry, and accelerate thedevelopment of modern animal husbandry, Mr.Qin Yinglin, deputy to the National People’sCongress and Chairman of Muyuan, put forwardthe Accelerating the Rapid Transformation andUpgrading of the Breeding Industry Proposal toAchieve Sustainable Development at theSecond Ses sion of the 13th National People’sCongress of the People’s Republic of China. Tocounter the ASF outbreak, in order to promotelaboratory testing and related technology R&D,
The 6th Global Pig Forum and the 16th (2019)China Swine Industry Development Conference
The 8th Leman China Swine Conference
Promoting ASF Control in The Whole Industry
Focus on NPC & CPPCC
Industry Exchange
The 17th (2019) China Animal Husbandry Expoand 2019 China International Animal HusbandryExpo
Three-prevention Pig Farm Schematic Diagram
On 22 February 2019, the International Symposium onAfrican Swine Fever Prevention, hosted by the HenanSwine Industry Association and Muyuan, was held inZhengzhou, Henan. At the conference, a number ofexperts from the United States and Denmark shared keyexperiences on ASF prevention. Mr. Qin Yinglin,Chairman of Muyuan, delivered a speech entitled "Newpractices for ASF prevention during feed, processing,and transportation" and shared Muyuan’s experience inASF prevention at the conference.
International ExchangeExperience Sharing
Active Prevention of ASF
and to standardise laboratory biosafety management, Qin Yinglin put forward a suggestion on the opening of nationallaboratories for the overall ASF control project, which gave strong support to the ASF control-related decision-making.
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Since November 2018, all subsidiaries of Muyuan have been actively assisting the local government with ASFprevention and control work. Through the self-developed "Warning and control big data platform of animalhusbandry", Muyuan, allied with small and medium-sized farmers, carried out all elements management ofregional disease information to jointly supervise, forecast and control ASF. In addition, all subsidiaries supportedsmall and medium-sized farmers in ?ghting ASF through investigation on pig farmers around the area and pro-motion on ASF prevention knowledge.During the outbreak of ASF, Hubei was under enormous pressure in coping with severe situation of ASFprevention and control. The local subsidiary of Muyuan actively cooperated with the government in ? ghtingASF. It introduced special assistants and donated sterilisation vehicles and various control supplies worth tensof thousands of yuan. In addition, the subsidiary conducted training sessions and distributed lea? ets on ASFprevention to enhance the ASF prevention awareness and ability of small and medium-size farmers. It also pro-vided ASF testing for Muyuan’s f arms, other small and medium-size farmers and individual farmers, so as tosupport the whole industry’s ASF testing and prevention.
ASF has had signi? cant impacts on the pig breeding industry and put forward higher requirements for biosecurity protectionsystems on pig farms. Muyuan is equipped with a comprehensive epidemic prevention system and strong professional teamsand has taken a series of preventive measures including hardware upgrading and m anagement enhancement. In the future,we will further improve our ability to safeguard the quality of hogs, enhance the R&D of anti-epidemic and nutritionaltechnologies, and comprehensively promote epidemic prevention, so as to provide consumers with high-quality andwholesome pork.
Supporting Small and Medium-Sized Farmers
A total of 786 R&D talents and R&D investment of 112 million.A total of 156 utility model patents, 1 design patent and 25invention patents.Won 2 Henan Provincial Science and Technology Progress Awards and
11 Henan Provincial Technology Achievements, participated in 3National Key Science and Technology Programs and undertook 1Henan Provincial Key Science and Technology Program.Initiated 167 technol ogical R&D applications programs in 2019,including 22 arti? cial intelligence and 60 robotics R&D applications.
Contributing tothe UN SDGs:
Technology Innovation, Leading the Upgrade
Highlights
Topic 4
Active Prevention of ASF
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Feed production
Feed management
Smart breeding robots
Adhering to “high-tech production of wholesome pork”, Muyuan upgraded its pig breeding mode from 1.0 to 3.0 (de? ned inboxes below) after years of exploration and marched into an era of smart pig farming. By developing smart equipment such assmart-feeding machinery, smart environmental control machinery and pig-breeding robots, we provide a highly clean-livingenvironment for pigs to safeguard their health and achieve safe production.
Arti? cially intelligent pig breeding uses smartrobots to carry out pig farming, reduceshuman-pig contact, conducts online monitoring, and establishes optimisation bases throughcentralised computer systems, so as to achievesmart pig farming.
Automatic and mechanised pig breedingincreases productivity through standardisedindustrial management.
Free-range farmers raise pigs manually.Pig breeding era1.0
Pig breeding era2.0
Pig breeding era3.0
Muyuan has recruited 786 R&D talents from leading colleges and scienti? c researchinstitutions at home and abroad including George Washington University, CarnegieMellon University, Chinese University of Hong Kong, Tsinghua University, etc. The R&Ddirection covers specialised areas like husbandry, veterinary, breeding, nutrition, smart IT,energy engineering, environics and materialogy. In addition, Muyuan has activelycooperated with external companies to develop smart technology and create a smartbreeding ecology.In 2019, Muyuan invested a total of 112 million for R&D. As of the end of the reportingperiod, various hog houses and relevant equipment developed and designed by Muyuanhad been granted 182 utility model patents, design patents and invention patents.
Integrating new technologies such as big data analysis, forecasting, andInternet of Things (IoT) within the industry, Muyuan has built a smartdigital platform covering industry chains such as feed management,epidemic prevention and control, smart breeding, environmentalprotection management, food safety traceability, etc., ensuring theonline management and real-time communication of all businessmodules for safe and e? cient operation of the production system.
R&D Team
Smart Platform
The smart feed production system realises unmanned operation for thewhole process through smart equipment and technologies such asautomatic raw grain s ampling, unattended weighing, hydraulic rear dumpauto-unloading vehicle, etc., reducing personnel contact with materials toensure biosecurity and work safety.The system also makes it possible for feed processing to be matched wit hreal-time feed demands, and avoids undercapacity or overcapacity byreal-time data update, data processing and data analysis.
Through smart airtight pipes, feed is delivered to corresponding pig shedswithout contact with air, which guarantees biosecurity. The smart feedingequipment in the breeding unit can build a ? ne feeding model based on thegrowth curve of pigs, and thus achieves precise individual feeding withsupport of smart feeders. Meanwhile, the system automatically collectsinformation such as feed intake and water consumption to monitor andmake warnings on pigs’ health, and thus achieves smart feeding and datamanagement.
Muyuan independently developed and applied a series of smart breedingrobots, which are used for feeding, patrol, pig herding, pig collecting, disinfection and cleaning, to realise unmanned patrol, remote monitoring,smart identi? cation, self-diagnosis, smart control and unattended operation.
Unmanned Breeding Industry
R&D Investment:
112 million
Patents: 182
Smart Production System
Rail patrol machine
Automatic pigcollecting machine
Muyuan has established a smart breeding platform to collect real-timeinformation like the temperature and humidity of hog houses andequipment operating conditions, using by data collection controlequipment. We have formed a smart production system withself-organised and self-adapted functions by using informationprocessing and arti? cial intelligence technologies. Based on di? erentages and various conditions of pig herds, the system automatically?nds the most suitable growth control plan for pigs, to achieve re? nedbreeding management and smart decision-making.
Smart breeding platform
Technology Innovation, Leading the Upgrade
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Through continuously collecting, ? ltering andcalibrating sound data in hog houses by the soundcollecting devices, coughing pigs can be identi? ed.According to the cough voiceprint of di? erentdiseases, the system can issue health warnings,disease identi? cation and treatment evaluation.
Smart Pig Health Monitoring Based on Arti? cial Intelligence
Smart cough monitoring
Through capturing footages of pigs and calibratingthese onto di? erent behaviours of pigs, by buildingalgorithm models via arti? cial intelligence, di? erentpositions and characteristics of pigs are monitoredand identi? ed. Sick, weak and abnormal pigs can beautomatically identi? ed accordingly. The pigs’ healthconditions could be determined.
The breeding industry in China is currently in a period of ongoing transformation and upgrading towards modern animalhusbandry, which needs to be achieved by technology. Muyuan actively initiates technological innovation, managing toconstantly improve breeding e? ciency and reduce breeding costs with the assistance of smart devices, IoT, arti? cial intelligenceand big data analysis. Through the application of smart machines, smart breeding platforms and three – prevention pig farms,we also create a clean breeding environment to safeguard pigs’ health and produce wholesome pork.At present, Muyuan is building a big data service platform based on data collection from all breeding processes to provideextensive application scenarios and mass ive industry data, and to establish a breeding mode covering the whole industrialchain ecology. In the future, Muyuan will drive the upgrading of the pig industrial chain through technological innovation andgradually guide the breeding industry towards the new era of intelligence.
Visible image recognition
Infrared temperature measurement device on thepatrol machine is used to take temperature samples atcritical parts of pigs at di? erent times; statisticalanalysis and data comparison are then performed todetect pigs with fever based on observed abnormaldata, thus realizing self-diagnosis.
Infrared temperature measurement
By using technologies including voice recognition,visual recognition, in-depth learning, knowledgegraph, etc., signal and image processing, smartidenti? cation, monitoring and measurement ofvarious indicators can be realized.
Identi? cation of Sick & weak pigs andsales headcount recognition
Based on image processing algorithms, the cameraon the patrol machine and the handheld cameracan accurately measure the weight of pig herds andof the individual, which contributes a lot to healthmonitoring and individual management of pigs.
Image weight estimation
While actively pursuing scienti? c andtechnological innovation, Muyuan Logistics Co., Ltd takes initiative to promote joint developmentof all links in the industrial chain and lead theindustry to gradually enter a new era ofintelligence.The platform integrates online and o? ineresources, arranges vehicles scheduling in a fastand accurate manner by exploiting technologiessuch as information technology, intelligence, GPSpositioning, and provides specialised, visualised,standardised and customised vehicles and goodsmatching services to address issues in traditionallogistics. It provides a stable number of trips andinco me for individual drivers and ensures logisticssecurity for owners.
Building a logistics management platform
Muyuan Logistics Co., Ltd., an entity beyond the Scope of the Report, has also actively carried out scienti? c andtechnological innovation and built an intelligent logistics platform to improve the e? ciency and security of logisticstransportation.
Technology Innovation, Leading the Upgrade
Predicted weight: 145±5kg,Actual weight: 142kg
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Intelligent industrial chain, cloud-based business operation, unmanned pigfarming, and transparent traceability system across the whole business chainwhich can protect every link from the "farm source to the dining table" andmake the food safety guarantee visible.Passing the Food Safety Management System FSSC22000 certi? cationrecognised by GFSI (Global Food Safety Initiative) and passing the GLOBAL GAPstandard certi? cation as the ? rst pig breeding company in China to do so.
Highlights
Produce wholesome food for society, improve life quality for the communityand help people to enjoy an abundant life.Rely on our own strength to create value without chasing undeservedpro? ts.
— Muyuan Basic Law
Food Safety FirstProviding High Quality Pork
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Selecting Excellent Breeding Pigs
Muyuan sticks to the whole industrial chain management model for pig breeding, whichis "self-raised, large-scale and integrated" and gradually carries out its industries layout inslaughterhouses and logistics. Muyuan promotes smart agriculture: throug h the processmanagement such as intelligent breeding, intelligent environmental control, precisionfeeding, behavior analysis, intelligent veterinarian, intelligent food safety managementsystem, Muyuan implements digital management throughout the product life cycle, realizes the digital and intelligent food safety management across the whole industrialchain, and provides more safe and reliable products for consumers.
Driven by the pork demands of end consumers, Muyuan takes food safety, pork quality, lean meat rate and fertility as mainindicators and focuses on selecting and breeding excellent pigs. Muyuan relies on scienti? c breeding techniques to improvegenetic performance, increase the breeding e? ciency, reduce feeding costs, and improve the quality and taste of pork, whichprovides high-quality source of pigs for the Company, e? ectively supports the stable production and supply of pigs, andfacilitates the production capacity recovery of pig breeding industry.
Muyuan, together with the world' s top universities and research institutes, has built a ? rst-class scienti? c and technologicalinnovation platform and conducts researches on key technologies for breeding pigs, such as smart testing, genetic big dataevaluation and molecular identi? cation of genetic resources. In addition, Muyuan established a professional data managementcenter to realize centralized information management system, and developed a breeding system with independentintellectual property rights, through which performance data of breeding pigs and their descendants are collected andbreeding value is calculated using Best Linear Unbiased Prediction Model (BLUP) and GBLUP software.
Muyuan has formed a large resource library of lean breeding pigs, covering the world' s best varieties and strains, which laid asolid genetic foundation for the breeding system. After years of selection, we have gained our own high-yielding variety. It wasselected through strict genetic evaluation and a combination of performance testing and marker-ass isted selection. Excellentgenes of breeding pigs are quickly spread by arti?cial insemination. The quality of breeding pigs is continuously improved. Abreeding system for lean pigs with constant improvement is established.Muyu an has continuously explored and innovated and built a complete breeding system of “great-grandfather to grandfatherto parent to commercial pig”, forming a Recurrent binary breeding system. The system produces pigs that can both providemeat and used for breeding. Faced with the extreme lack of sows caused by ASF, the system provides the market with high-qual-ity breeding pigs, facilitates the production capacity recovery of pig breeding industry and e? ectively supports the stableproduction and supply of pigs.
Nanyang black pig breeding has a long history. It has stable genetic performance and shows distinct advantageswhen hybridising with foreign pigs. For t he purpose of promoting conservation and utilisation of local pig resources, Muyuan cooperated with Neixiang Shunfa Nanyang Black Pig Protection Technology Co., Ltd. to conduct a generalsurvey on Nanyang black pigs, formulate a breed conservation and selection plan, set up a breed conservationgroup, specify methods for breed conservation and selection, in order to preserve the ? ne genes by generationalselection.
Guaranteeing Safety and Quality
Building a scienti? c research platform
Establishing breeding systems
Promoting genetic exchangeAs one of the ? rst national pig core breeding farms, Muyuan already owns two national core pig breeding farms. Meanwhile, Muyuan organizes and participates in the genetic exchange activities among excellent breeding pig enterprises at home andabroad, continuously carries out genetic improvement of various economic traits, and promotes the development and prog-ress of the industry.In 2019, Muyuan participated in the "National Joint Research Program for the Fine Breeding of Livestock". We focused on theselection of high-quality lean pigs, the construction of a genome selection reference group, the exploration of major genes forpigs’ essential traits, thus to provide technical support for molecular breeding of pigs.
Landrace boar
Yorkshire sow
Landrace-Yorkshire
two-breed sow
Yorkshire/Landrace boar
Recurrently selectedtwo-breed young pig
Two-breed crosscommercial pigsGestation114 days
Finishing Stage120 – 150 days
"Three-breed pigs” are usually used in large-scalebreeding. Cross-bred from three varieties, they grow fastwith a high feed conversion rate and tasty meat.
Protecting the Nanyang black pig
self-bred andself-raised
large-scaleintegrated
Food Safety First
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Food Safety Management System
Muyuan strictly implements the international standards and the requirements of Muyuan Basic Law,continuously improves the food quality standards, and e? ectively monitors the whole process fromsource to production to sales, so as to ensure the safety of pork products across the whole productionchain from farm to dining table.
Establish a tripartite management system consisting of source qualitycontrol, technical testing, and procurement to fully secure inputquality through upstream supplier information management(realized by e-procurement system), input quality inspection andacceptance, storage management, etc.; Formulate a Food Safety Management Manual and inspect rawmaterials in accordance with standards which are stricter than thenational quality and transportation requirements; In 2019, 158 input suppliers were assessed, 2,301 batches of inputquality were inspected on a sampling basis, the quali? cation rate ofincoming materials was 93.65%, unquali? ed products were returnedand replaced in a timely way; 2,350 batches of input were acceptedfor storage, and the quali? cation rate for usage was 100%.
Raw materials: input management system
Breeding: pig breeding security system
Set up smart feed factories with smart production processes; Strictly implement the requirements of Feed Quality and SafetyManagement Speci? cation and other regulations and standards, control each risk point of the business chain of “source procurement -storage – processing – transportation – farms”, so as to ensure that feedproduction is knowable, controllable and traceable; among all rawmaterials, corn is sourced from Northeast China and the biologicalsafety and quality can be guaranteed;Adopted FSSC22000 management system and passed third-partycerti? cation; In 2019, no risk event occurred at the feed factory and thequali? cation rate for sampling inspection on raw materials was 100%.
Ensure a safe and clean environment for pig sheds by e? cient fresh air? ltration, smart and precise ventilation and other smart and automaticfacilities; E? ectively improve pigs’ health with the sound biosafety preventionand control system established by professional veterinarians andproduction teams;
Feed: feed processing management system
Set up the subsidiary Henan Hongxin Testing Technology Co., Ltd.(Hongxin Testing). Conduct testing and verifying work includingveterinary drug residues, nutrition testing, environment monitoring andepidemic diagnosis, etc. in veterinary drugs, water source, feed and pigbreeding. This is in accordance with the annual supervision focus ofanimal products set by the Ministry of Agriculture and Rural A? airs. Wehave adopted the combination mode of self-testing and third-partytesting for food safety.
Testing: testing and monitoring system
Sales: product quality certi? cation system
Harmless: harmless management system
Guided by the needs of clients and consumers, continuously followand analyse the trend of meat quality demands in the market.Communicate with the breeding department and the productiondepartment in a timely manner, and stick to improving the processspeci? cations and pig quality;Established strict standards including the Muyuan Commercial PigsStandard and the Muyuan Pork Products Standard. Comprehensivelyregulate products in as pects of sensory indicators and productionperformance. Conduct strict approval and testing of pig quality beforesales, and only the pigs which meet the standard are available for sale;
Strictly follow the harmless treatment standards, apply advancedtechnology and equipment, and carry out visual supervision on thetransportation and treatment process; In 2019, no dead sick pigs ? owed out.
Provide overall guarantee for the safety of pig feeding and drinking water through intelligent scheduling of feeding andthorough disinfection of drinki ng water, airtight transportation of feed and water to corresponding pig house, andintelligent feeding system where the whole feeding process is automatically recorded and unmanned;Muyuan realised standardised management of the whole pig breeding process based on the food safety managementplan approved by GFSI. Passed the China Good Agricultural Practices (China GAP) certi? cation in January 2019 andpassed the Global Good Agricultural Practices (Global GAP) certi? cation in February 2020.
Food Safety First
Operated unmanned weighing equipment during the sales link to reduce the trauma and stress of pigs and improvethe quality of pigs; In 2019, pass rate for sampling inspection on pig products was 100%.
Sustainability Report 2019
Muyuan Foods Co., Ltd.
[Product]: continuously monitor drug residue inpork, tissue, feed, water, soil, etc.[Empower personnel]: provide professionaltraining for relevant personnel, including regulartraining and assessment for disease diagnosis, accuratedosing, statistical analysis of drug sensitivity database,smart pig shed application and productionmanagement, to enrich sta? ’s knowledge and improvetheir operational skills.
Muyuan is committed to improving the food safety manatement "from farm to dining table" across the whole industry chain.Through industrial Internet, intelligent feeding, intelligent equipment, Internet of Things platform, AI technology and otherapplication technologies, a transparent traceability system of food safety and product quality is formed.
With the expansion of Muyuan’s business, Muyuan is actively planning a traceability system of terminal products, where oneproduct is stamped with one peculiar OR code, by scanning which consumers can get the complete product information,such as its origin, the production process, etc. and enhance their trust in food safety.In 2019, Muyuan developed a large full screen for quality control integrated with the traceable system, showing a clear visionof business processes. All modules can detect and send real-time warnings, so that the Company can identify and addressissues in a timely way.
Muyuan formulated management systems, processes, tools, etc. for procurement, acceptance, storage andutilisation of veterinary drugs and vaccines, and formed mid- and long-term plans to gradually and orderly reduceand ban antibiotics, to establish and improve an antibiotic-free breeding management system.
Strictly comply with national withdrawal period standards; avoid use of“growth-promoting antibiotics” in the course of breeding.Provide high-quality pigs and cut down use of antibiotics.Avoid use of “prescripti on antibiotics” from breed phase to nursery phase.
[Feed]: proceed with research on feed nutrition anddevelop plans for feeding di? erent pigs to guaranteetheir nutrition and health, actively evaluate and screenantibiotic alternative products and drugs. Muyuan hasgradually withdrawn the use of pharmaceuticaladditives in feed since September 2019.[Breeding]: monitor, prevent and control pigs’ diseasesaccurately in a timely manner; set up a database of drugsensitivity for precisely choosing and using veterinarydrugs; focus on the development of a water dosingsystem to reduce drug consumption of herds.
AchievedIn progressObjectives
Three-level standards for Muyuan’s “antibiotic-free breeding”
Food Safety Management across the Whole Industry ChainMuyuan has set the Veterinary Department and the Nutrition Department as the main responsible dep artments forpig health and nutrition management. We established a complete epidemic prevention management system, andcontinuously carry out research on pathogenic viruses and bacteria in pigs. We promote steady progress in diseaseprevention and control and have reached the leading level in the ? eld in China.Adhering to the concept of “breeding is above prevention, prevention is above treatment and the prevention andcontrol are integrated”, Muyuan formulates immunisation management procedures, and disinfection andanti-epidemic policies for pigs. We takes anti-epidemic measures such as a multi-level quarantine system for pigfarms and microenv ironment control in each house, and has established a corresponding anti-epidemic warningsystem.For the farms’ layout, Muyuan plans them as “large areas, small units” to prevent cross-infection and invasion ofexternal pathogens. During the breeding process, Muyuan takes biosecurity measures including “segregated earlyweaning”, “segregated parity production” and “one-to-one transfer” to ensure that the anti-epidemic systemfunctions safely and e? ectively. The Company further improves pigs’ health by smart feeding and ? ne managementof pigs’ nutrition.In 2019, Muyuan made achievements in disease research and prevention as follows:
Blue-ear disease: the detection rate of antigens in various herds dropped signi? cantly, among which thedetection rate of antigens in weaned herds decreased by9% compared to 2018; the average weekly miscar-riage rate of sows decreased by
0.4% over 2018;
Zero detection of foot-and-mouth disease and Seneca virus; Zero incidence of Porcine Epidemic Diarrhea (PED);
E. coli control: occurrences were greatly reduced, and the incidence was controllable without edema; H. parasuis and streptococcus control: occurrences were greatly reduced.
Epidemic prevention and control
Engaging in antibiotic-free breeding
Food Safety First
Feed management
system
Customer relationshipmanagement system
Hongxin testsystem
E-procurementsystem
Visualized veterinaryservice system
Intelligent pig raisingmanagement system
Big Data Analysis
Market feedback
Customer service
QualitymanagementSales management
Pig management
Feed testing
Feed processing
Procurement managementStorage management
Food safety traceability system
with intelligentizationof the entire industry chain and
cloud business operation
Breeding management
system
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Muyuan established animal welfare standards covering allsubsidiaries. Combing the production practice, we exploreways to treat farmed animals more reasonably andhumanely, to ensure animals grow in a healthy andcomfortable way by using scienti? c methods and easingtheir pain in injury, disease and death.
On 27 June 2019, Compassion in World Farming (CIWF) heldthe Global Good Farm Animal Welfare Awards Ceremony inBrussels, Belgium. Muyuan was awarded the “Good PigProduction Award 2019”, which was approved and grantedby the International Cooperation Committee of AnimalWelfare (ICCAW) and Compassion in World Farming (CIWF).
Stick to ? ve basic principles of animal welfare, treatpigs with care and kindness, provide a safe, healthyand comfortable environment for pigs’ growth.
Committing to Animal Welfare
Muyuan animal welfare policy
Muyuan winning “Good Pig Production Award 2019”
Physical WelfareHealth welfare
Mental Welfare
Environmental WelfareBehavioural welfare
Food Safety First
Muyuan advocates scienti? c and precise pig breeding and examines pigs’ needs foreach breeding phase, dedicated to promoting pigs’ welfare.
Physical WelfareAdequate nutrition – The nutritionist team formulatesdi? erent nutrition formulas according to the di? erentgrowth cycle of pigs, so as to ensure that pigs haveadequate nutrition intake during the whole growthprocess.No hunger and no thirst – Smart feeding realizes individualprec ise feeding: it automatically feeds pigs when they needto eat, so as to ensure that pigs do not rush for food andcan enjoy fresh and healthy feed and drinking water at anytime.Health welfareSound Prevention- Muyuan establishes a comprehensivebiological prevention and control system, formulatesstandardized operation procedures such as vehicletransportation, water source monitoring, raw grainprocurement, production management, etc., andcomprehensively enhances the sta? awareness throughvarious training to ensure pig health in an all-round way.
Safe Food- Muyuan transfers safe and high-quality corn as
feed raw materials from Northeast China, strictly controlsthe quality from the source; Muyuan carries out sterilizationof feed through feed high-temperature sterilization stationand pipe chain system to reduce feed contact with humanand air; the whole process control ensures the food safetyfor pigs and the healthy growth of pigs.Health Monitoring- Muyuan developed and applied theorbit inspection robots to continuously collect the sound,image and infrared temperature measurement informationof pigs; based on arti? cial intelligence, Muyuan can quicklyand e? ectively judge the health of pigs and monitor avariety of growth indicators to achieve 24-hour healthmanagement of pigs.
Pigs tagging – Muyuan uses ear tag, printed tag, etc. for
permanent identi? cation, and uses materials without toxicand hazardous substance for temporary identi? cation.
Environmental Welfare:
Clean environment- A clean growth environment is
provided for pigs through intelligent feeding, pig robotsand other intelligent equipment; the burden of the sta? isthus reduced and the work e? ciency is improved.
Fresh air ? ltration- The pig sheds adopt 4-stage air ? ltrationsystem, which can not only e? ectively isolate mosquitoes,? ies and dust, but also intercept 99.3% ofAFS, blue eardisease and other viruses. The air ? ltration grade of pigsheds is 16, which is close to ICU air standard.
Precise ventilation- The independent ventilation system can
realize precise ventilation of pig sheds, avoid crossventilation, and provide high-quality air for pigs.
Pigs transferring- Drinking water available for pigs any time
before transferring; less than 8 hours of transport time; lessthan 3 pigs/m
of density, less than 15 pigs for everypartition; transport vehicles without sharp edges or bumpsthat might hurt pigs, and adequate height allowing pigs tostand normally; avoiding transporting pigs in extremeweather to reduce their stress reaction caused byexcessively high or low temperature.
Behavioural welfare:
Pigs loading and unloading: Muyuan uses proper
equipment to handle pigs horizontally, carries out theprocess with minimal external force and reduces mixedloading; injured and sick ones shall not be loaded andtransported.
Sows farrowing- The awaiting sows are transferred to the
delivery room 3 to 5 days prior to the due date; thefarrowing bed is clean and comfortable with its length noless than 2.2m, and the distance between the top rail andthe sows’ back is no less than 0.15m when they arestanding by which they could sit up and lie down easily; the free-birth system with unrestricted facilities is adopted; piglet is provided with supplementary heat to ensureappropriate living conditions.
Mental Welfare:
Good mental health- Muyuan independently developed
and applied a series of intelligent breeding robots to realize"unmanned" and reduce the contact between personneland pigs, so as to reduce the stress response of pigs.
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Highlights
Practice environmentally-friendly and animal-friendly business operations,promote circular economy, carry out clean production, reduce airpollutants, constantly improve food quality standards and actively constructindustrial ecology to facilitate sustainable development.
— Muyuan Basic Law
Circular EconomyRealising Sustainable Development
Greenhouse gas emission: 0.55 kg CO
e/kg live-weightFreshwater consumption: 1.6m? /pigZero external discharge of waste water and waste
Pig farms
Feed factory
MarketFertilizer
Plant basementMarket
Intelligentequipment
Organic mattertreatment base
Solid pigexcrement
MethanefertilizerAnaerobic
system
Methane electricitygeneration
PorkMethane
Grain
Feed
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Attaching great importance to environmental protection, Muyuan has put forward the development principle of “no costtransfer, no responsibility shirking and no hidden hazards” and the concept of “environmental protection ? rst”, and has built a“Five Steps of Environmental Protection” model, aiming to control energy consumption from the source, reduce pollutants andgreenhouse gas emission, and ultimately reduce impacts on the ecological environment.
Muyuan continuously improves the environmental management mechanism, with the Board as the highest regulatory bodyfor environmental protection. The Environment Monitoring Department set up by the Company is responsible for analysingand making judgements on national environmental protection policy trends, building and implementing the environmentalmonitoring system, and shall report to the Board on a regular basis.Muyuan has established a sound environment management of organisational structure throughout its headquarters, regions,subsidiaries and farms.
In 2019, in accordance with the relevant laws and regulations of environmental protection and to meet the developmentneeds of the Company, Muyuan optimised a series of regulatory policies such as the Policy for Environmental Protection Redand Yellow Licenses and the Environmental Protecti on Operation and Management Policy. We continued to strengthenenvironmental management in accordance with the requirements of ISO14001 and obtained external certi? cation.
The logistics support department is responsible for developingstandards and policies for environmental protection, guiding andmanaging environmental protection-related practices in variousregions, and conducting research on technological innovations to makefurther progress across the environmental criteria; The regional logistics support departments monitor and manage theenvironmental protection activities of the subsidiaries at the request ofthe state and surrounding communities;The environmental management team of each subsidiary is responsiblefor real practices together with the operation team of each farm basedon the environmental protection requirements of the Company.
In 2019, Muyuan organised trainings on a monthly basis forenvironmental protection personnel, with a total of over 200trainings completed. In addition, in order to enhance newemployees' awareness and concepts of environmentalprotection, the Logistics Support Department conducted specialenvironmental protection trainings for new employees in 2019, where information on environmental protection laws andregulations, environmental protection concepts of Muyuan,environmental protection processes and technology, etc. wereintroduced.
In 2019, in response to the Implementation Plan for theHousehold Waste Classi? cation Management Policy of HenanProvince and to gradually promote the classi? cation of householdwaste, Muyuan launched the campaign themed “WasteClassi? cation for Environmental Protection” to convey themeaning and methods of waste classi? cation to employees.
On 5 June 2019, Muyuan carried out the “6.5World Environment Day Promotion Campaign”to enhance environmental perception andawareness of all employees and call on them toprotect the environment.
In order to promote the informatisation-based managementof environmental protection, Muyuan built a big dataplatform and an information-based management system tomonitor and manage environmental data and share theenvironmental information internally.
By applying the IoT technology, Muyuan has established a bigdata platform to monitor all environmental data. The platformenables the delicate management of environmentalprotection th rough real-time recording and continuousmonitoring of environmental indicators (including waterconsumption, sewage amount, sewage ? owed into farmlands,gas consumption, power consumption, etc.) of di? erent farmsand business units, risk prevention and control, and e?ciencyassessment. Under a new operation model for environmentalprotection that integrates a variety of techniques such as datamonitoring, automatic upload, remote operation andunattended operation, Muyuan continues to promoteintelligent environmental management. We also expand theenvironmental monitoring scope with unmanned aerialvehicles and high de? nition cameras installed throughout thefarms to improve regulatory e? ectiveness.
Innovative Environmental Management Concept
Re? ning the Management Mechanism
Building an Information-based Platform
General Manager
Board of Directors
Environment Monitoring
Department
Muyuan Environmental
ManagementOrganisational Structure
Logistics Support
DepartmentRegional LogisticsSupport DepartmentsEnvironmental Management
Teams of SubsidiariesFarm Operation Teams
Muyuan Environmental Protection
Big Data Platform
DataAnalysisContinuousMonitoring
Risk Preventionand ControlE? ciencyAssessment
Environmental protection trainings and activities
Carbon emission reductionSmog reduction
No odour
Zero hidden hazards
Zero discharge
Promote clean production without heating and coalburningReduce PM.2.5 and PM10 emissions to mitigate airpollutionPrevent odour from disturbing the people' s lives forthe sake of a harmonious societyPrevent leakage in farms and monitor the surroundingenvironmentPromote farming-recycling model to realise ecologicalrecycling
“Five Steps of Environmental Protection” Model
In order to create a corporate culture of environmental protection involving all sta? , Muyuan organises various trainings onenvironmental technologies and environmental management policies to strengthen environmental protection awareness andskills among all sta? .Creating Environmental Protection Culture
Circular Economy
Sustainability Report 2019
Muyuan Foods Co., Ltd.
In 2019, Muyuan continued to promote the transformation of energy-saving projects and the application of newenergy-saving technologies. We improved our energy management policy, optimised site con? guration, and re? ned theprocess management so as to improve energy e? ciency. As for the major energy sources, electricity and natural gas, Muyuanhas adopted a series of energy-saving measures.
Separate electric meters are installed in theenvironmental protection areas and production areas inthe farms to monitor the use of electricity; Energy-e? cient processes are applied in the design offeed plant processes; Energy-e? cient feed equipment and electricalequipment such as energy-saving transformers, motorsand other electrical equipment have been adopted; Equipment is adjusted to operate automatically as fullyloaded as possible, reducing its idle waiting time;Biogas produced by anaerobic fermentation is used forintegrated power generation or as an alternative tonatural gas in boilers; in 2019, 1.69 million cubic metersof biogas was used to generate electricity of 3.388million kWh; “Turn lights o? when leaving” is advocated and the airconditioning temperature is also under strict control.
High thermal e? ciency boilers with design e? ciencyabove 98% are selected; Energy-saving devices and condensers are installed forboilers to ensure the exhaust gas temperature is below80°C; The insulation thickness of steam/hot water pipelines isgreater than 10cm, reducing heat loss during steam andhot water transfer; Energy-saving traps are used in workshops to reducesteam waste in the drainage process; Boilers were converted to utilise both natural gas andbiogas, with priority given to the use of self-producedbiogas; in 2019, the renovation projects in 11 regionswere completed, saving 642,000 cubic meters of naturalgas.
Energy-saving measuresElectricity savingNatural gas saving
It’s like covering the ground with a blanket.Advantages: 1. Reduce smog, 2. Create a more comfortable environ-
ment for pigs, 3. Lower cost and higher yield
Externalenvironment:
-39.3
Geothermal sources25℃
Reducing Resource Consumption
Sticking to the concept of green development and comprehensively acting upon the basic national policy of resourcesconservation and environmental prote ction, Muyuan follows the principle of “reduced production, harmless treatment, resourceutilization and ecological recycling”, It also continuously develops innovative environmental protection technologies, optimisesenvironmental protection standards, and strengthens discharge management. Based on years of breeding experience, Muyuanhas developed the circular economic model of "breeding – biogas manure – green agriculture", contributing to rural revitalisationand the building of beautiful China.To realize scienti? c utilization of resources, Muyuan set up a team of special agronomists to carry out research and development.Up to now, the team has 142 agronomists, including 37 postgraduates and 73 undergraduates, with an annual R & D budget ofmore than 13 million yuan. With an investment of more than 26 million yuan, Muyuan has set up an environmental protectionR&D laboratory to support the research and development of resource utilization technology, implement soil testing and formulafertilization, and realize the technical standard of resource utilization of "one case, one district, one discussion".
Muyuan has set up a clean production management system for monitoring and managing its carbon footprint, heavy metalfootprint, antibiotic footprint, water footprint, nitrogen and phosphorus footprint and biogas slurry and salt footprint, as well asfor monitoring the processes from feedstu? processing and production, discharge of biogas slurry to the farmlands, tosubsequent agricultural products, thereby systematically controlling the resources consumption and emissions during theproduction and breeding process.
Building Circular Economy
Based on the greenhouse gas accounting guidelines published by the United Nations Climate Commission, and ouractual production situation, Muyuan accounted for the processes including feed processing, enteric fermentation, fecalmanagement, low carbon emission reduction and energy consumption management. We examined raw fecescomposition, composition changes at di? erent stages of feces management, etc. A carbon emission accounting systemwas preliminarily established.In 2019, Muyuan calculated the carbon emissions of a farm in Hubei. We conducted comprehensive assessment on thegreenhouse gas emissions during the whole proces s from production and breeding to application of biogas slurry tothe farmlands. We monitored the emissions of methane, carbon dioxide and nitrous oxide. We quanti? ed the emissionreduction actions such as methane recycling and application of biogas slurry to the farmlands. Then ?nally wecalculated the greenhouse gas emission in this farm to be 0.55 kg CO
-equivalent per kilogram of live weight (0.55 kgCO
e/kg live-weight).Muyuan has set up a ? ve-year carbon emissions planning target, which plans to achieve accurate collection ofgreenhouse gas emissions in the next ? ve years, form a Muyuan clean production database, and continuouslystrengthen its low-carbon emissions reduction business e? orts, so as to continuously reduce greenhouse gas emissions.
Calculation and reduction of greenhouse gas emissions
Energy saving: unheated hog houses
Circular Economy
Muyuan has independently developed innovative unheated hog houses, all of which, without supply of heat, canmaintain internal temperatures at 22~25, even under the extreme external conditions of around -40.In the planning and design of the farms, Muyuan makes the door parallel to the predominant wind, ensuring e? cientoperation of the ventilation system, while applying insulation materials and spraying water onto the protectivestructure of the hog houses to reduce heat dissipation.Air ducts are arranged inside the hog houses for heat exchange between fresh air and gas to be discharged. The heat isthen transferred through the air ducts to the pigs’ res t area, increasing the recovery of heat from waste gas emissions,lowering the exhaust temperature and reducing the heat dissipation. Minimum ventilation capacity of the heatrecovery system can be properly set for the hog houses according to the indicators such as carbon dioxide, ammoniagas, oxygen gas and humidity of each unit air, and the air ? ow can be regulated through the intelligent environmentalcontroller, enabling automatic internal temperature control according to the changes in the external environment, soas to ensure that environmental temperature in each cell remains stable.Through the heat exchange system, gasheating in the winter is abolished. Atotal of 82.86 million m
of natural gasconsumption was saved in 2019.Unheated hog house not only improvesthe survival rate of pigs in the winter, but also reduces the external heatingcost, the energy consumption and thewaste gas of boiler combustion,promoting the environmentaltransformation in pig industry.
Sustainability Report 2019
Muyuan Foods Co., Ltd.
In Muyuan, water is mainly consumed for production in the farms and household demands in the o? ce premises. With thecontinuous expansion of the scale of farming , Muyuan actively responded to the national call to save water and resources ”, has developed innovative breeding water-saving technologies, and thus formed a unique water-saving model. Muyuanconducts water-footprint management by monitoring the water consumption and proportion at various st ages during thewhole process of production and breeding in the farms, and by setting water consumption standards for each farm. We alsoadopt water-saving measures to reduce water consumption.Muyuan collects statistics on water consumption at di? erent stages of pig farming. By installing accurate measurementequipment, such as measuring the total water consumption of each cell and water consumption of each type, Muyuandetects abnormal water consumption in time and avoids wasting water. Muyuan also adopts a parallel comparisonmechanism for the same cells in di? erent ? elds to control water consumption, thereby putting water conservation intopractice.
In addition, a number of measures are taken to reduce water consumption during the breeding process.
The energy and water consumption of Muyuan in 2019 is showed as below:
Anaerobic fermentation
Returning tothe ? eld outside farms
Recycling in farmsDomestic water
Drinking waterMedicationWashing
In the hoghouseOdour preventionSprinkling
Slatted ? oor
Limit switchdrinking device
Clean hog house withpressure washer
Water meter
Low waterconsumptionfor washing anddisinfectionLeakageprevention
Computer-assistedtemperature control
LeakagepreventionSprinkling controlled
by computer to
save water
20192018IndicatorUnit
Total electricityconsumptionTotal gas consumptionTotal gasolineconsumptionAverage waterconsumption per pig
MWhm? Lm?
802,396.6220,251,905.336,180,599.74
one point six
674,940.006,710,208.644,586,100.49 1.6
Amount of wastewater and wastes generated and treated in 2019 is shown in the following table:
Commitment to “Zero discharge”Muyuan is committed to the strict control of the waste gas, waste water and solid waste generated during operation process.We properly handle the resultant waste and reduce the generation of emissions and discharge from the sources.
Muyuan raised odour treatment to the company’s strategic level and established the management goal of “treatment of odour,not disturbing the people”, and thus formulated a series of policies and standards, such as the Odour Assessment Guidelines andSpeci? cations on environmentally-friendly Deodorisation System. We also set up a six-level criterion for odour assessment, strictly implemented odour control measures, and conducted regular odour impact assessment in the operating areas, tooptimise the odour treatment.Muyuan developed an industry-leading three-prevention pig farms to control the odour source, and adopted the followingprocesses such as odour reduction from the source, process monitoring, e? ect tracking, sealed deodorisation, etc. to minimisethe odour in the farms, and further to ensure that it does not have a major impact on the surrounding residents.
The wastewater and wastes generated from breeding mainly include pig excrement. Muyuan formulated a series of policiessuch as the Management Measures f or Wastewater from Farms and other policies to strictly prevent excrement spillage orleakage, while implementing a "planting & breeding circulation model" to recycle pig excrement, achieving zero e? uent.Muyuan established a drainage system for separation of rainwater and sewage, allowing the rainwater to be discharged to the?elds and trenches outside and the sewage to be collected through the wastewater pipelines. Household wastewater anddisinfecting wastewater are centrali zed and gathered into septic tanks or nearby collection tanks for integrated use aftertreatment and are prohibited from ? owing into stormwater drains or o? -site trenches.For the medical wastes generated during the production process, Muyuan developed a Medical Waste Management Policy,under which medical wastes are centrally collected, stored in separate medical waste temporary storerooms by category, andregularly delivered to quali? ed institutions for treatment.
2019IndicatorUnit
m? mmu (=666.7 m
)Ton
%TonTon
One point zero two
Four million nine hundred and sixty thousand
Nine hundred and sixty thousand
Zero point zero three nine
Zero point zero one three
Odour treatment
Wastewater and waste management
Water saving
Per head on the market of sewageproduction (wastewater)Length of pipelines laid for returningbiogas slurry to ? eldArea of ? elds irrigated by biogasslurryPer head on the market of solid pigexcrement producedTreatment rate of solid pigexcrementPer head on the market of organi cfertiliser producedDischarge of COD and ammonianitrogen (in wastewater) of farm
Circular Economy
Sustainability Report 2019
Muyuan Foods Co., Ltd.
In order to promote waste treatment, Muyuan adopts an integrated ecological cycle of "breeding – biogas manure -ecological agriculture”, and upgrades animal manure treatment from “harmless disposal” to “recycling of resources”.Wet and dry pig manure and urine produced in the farms are s eparated, and then the solid portion is processed intospecialised fertiliser for sale; the liquid portion is treated through anaerobic fermentation, with the biogas produced forself-use and power generation in the farms. Biogas slurry is temporarily stored in the farms as fertiliser, and subsequentlytransported through the pipe network to the surrounding farmlands during the fertilisation seasons, so that the wastesare completely recycled.
In order to ? nd the best solution for biogas slurry application fordi? erent regions, Muyuan carried out experimental research on 16 majorcrops, propagandised the demonstration farmlands in 65 counties andinvited agricultural technical specialists to provide agricultural technicalservices for f armers.Muyuan has laid a supporting agricultural pipe network for thesurrounding farmers within 3-5 km around the corporate farm, so as tofacilitate biogas slurry application among farmers; as of the release dateof the Report, the length of the pipelines has reached 5.79 millionmeters, with a total investment of 550 million yuan.In 2019, the length of pipelines for returning Muyuan’s biogas slurry to? elds reached 4.96 million meters, and the area of ? elds irrigated bybiogas slurry was 960,000 mu, with fertiliser applied per mu of farmlandbeing decreased by 17% on average. 2, 194 rounds of agricultural andtechnical services were provided to a total of 90,705 farmers from 355villages, covering crops including wheat, corn and other crops in CentralChina, rice in Jiangsu Province, Hubei Province, etc., apples in ShanxiProvince, and kiwi fruits and golden pears in Nanyang City.It is estimated that, on average, application of biogas slurry contributesto approximately a 12% increase in output, thereby forming a greenfarming model. Though this model, the pig raising and crop plantingcould promote each other, and they are combined in pursuit of scienti? cdevelopment.
According to the requirements of the policies such as theTechnical Speci? cations for the Prevention and Control ofPollution from Livestock and Poultry and the TechnicalSpeci? cations for Harmless Treatment of Livestock and PoultryExcrements, and the local regulations specifying the areasprohibited or restricted for breeding, Muyuan strictly controlsthe site selection and planning of farms, feed plants, organicfertiliser plants and hazard-free treatment plants, and followsthe following principles during the site selection process:
Subjecting all construction projects to approval on environmental impact assessment; Complying with the relevant laws and regulations to ensure the sanitary protection distance; Complying with regulatory requirements and avoiding the building of livestock farms and organic fertiliser plants in prohibitedareas, such as drinking water protection areas, scenic spots, core areas and bu? er zones of nature reserves, urban and townresidential areas (including cultural, educational and scienti?c research, medical, commercial, industrial, and tourism areas withconcentrated populations), as well as other areas prohibited for breeding or requiring special protection as prescribed by localgovernments or laws and regulations; Selecting sites of feed plants in line with local industrial planning, including park planning, land use planning and spatialdevelopment planning; Comprehensively considering several elements, such as surrounding crops and fertilisation practices, water resources,surrounding farms, and surrounding heavily polluting enterprises.
While creating value, Muyuan actively explores ways to reduce the impact on the ecological environment, e.g., by identifyingenvironmental risks in the early stages of project construction, developing environmental protection programs, selecting sitesin strict alignment with ecological planning, and signing land restoration agreements with the government, so as tocontinuously promote green transformation and upgrading of farms.
During and after the project construction, Muyuan a? orests the corresponding areas according to the surrounding plantingcharacteristics with local plants, thus minimising the impact on the land and ecological environment. Muyuan monitors andassesses the water resource risks of the project location. We fo llow up the impacts on the environment arising from applicationof biogas slurry to the farmlands. We select proper monitoring locations for long-term continuous monitoring of groundwater,surface water, soil, etc. We also conduct sampling and monitoring activities twice a year to detect the surroundingenvironment quality and to further ensure that the appli cation of biogas slurry to the farmlands does not cause pollution tothe surroundings. In addition, we also assess the improvements to soil fertility, including desert and saline-alkali soil resultingfrom the application of biogas slurry based on the annual changes in soil nutrients.
Protecting the Ecological Environment
Construction of an ecological cycle
In 2019, Caoxian Muyuan Livestock Co., Ltd. (CaoxianMuyuan), a subsidiary of Muyuan, launched the project ofsea rice production in saline soil. 300 mu of sea rice wereplanted and 55 m
of biogas slurry were applied to each muof farmland on average, saving 13,200 kg of fertiliser.According to the testing results, total salt content andorganic matter changed to 0.94 g/kg and 12.67 g/kg, whichwere 2.77 g/kg and 8.62 g/kg before planting. The projecte? ectively reduced soil salinization and increased soilorganic matter, vigorously promoting local ecologicalenvironmental improvement and agricultural economicdevelopment and realising the sustainable development offertiliser reduction and soil improvement.
Saline soil improvement– resource utilization of sea rice
Process of returning biogas slurry to ? elds
Materialpreparation
Biogas slurrytesting /Soil testing
ExperimentTrainingImplementation
On-sitecontrol
Follow-upsPipeconnectiontesting
Standardformulation
Circular Economy
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Highlights
Help customers succeed. Do unto others as you would have them do untoyou.Treat people sincerely. Assist the customers with all our heart. Be fair andim partial, open and transparent, simple and trustworthy to achievecost-e? ective and win-win results.
— Muyuan Basic Law
Work Together
Sharing the Value of theIndustrial Chain
Suppliers that signed formal contracts: 100%.Proportion of electronic procurement: 100%.Rate of signing environmental protection agreements: 100%.Rate of signing integrity agreements: 100%.Establishing cooperative relationships with 2,543 suppliers across China.
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Upholding the concept of “Be fair and impartial, open and transparent, simple and trustworthy to achieve cost-e? ective andwin-win outcomes”, Muyuan upholds integrity and self-discipline to create a fair and impartial business environment. Oursuppliers mainly o? er raw and auxiliary materials, veterinary vaccines, a wide variety of materials and engineering materials.As of the end of the reporting period, Muyuan has established cooperative relationships with 2,543 suppliers across China.
Strengthening Supplier Management
Based on Muyuan’s standards for acceptance of various suppliers, we have identi? ed quali? ed suppliers as ourpartners through on-site inspection, pre-quali? cation, preliminary assessment, quality assessment, cooperationcommitment and cooperative investigation.
Muyuan attaches importance to the control of the environmental and social risks of suppliers and requires each supplier to signand strictly execute the documents such as the Environmental Protection Commitment to strengthen environmentalprotection. Muyuan requires suppliers' products, raw materials, production processes and services to comply with the laws andregulations relating to environmental protection, prohibition of child labour, equal employment, and occupational health andsafety. At the same time, Muyuan urges suppliers to adopt non-polluting or less-polluting production processes, equipment andconstruction methods, and to properly dispose of wastes and reduce pollutant emissions.Muyuan also signs the Integrity Agreement with partners to jointly combat commercial bribery, corruption, unfair competitionand commercial fraud. Muyuan’s Integrity and Self-discipline Management Policy strictly prohibits employees from receivingany money o r gift from suppliers and strictly resists commercial bribery during the procurement process.
Delivering Sustainable Value
Based on periodic supplier evaluationsystem, Muyuan divided suppliers into fourgrades of AAAAA, AAA, A, and B based onquality, price, delivery and service, andgranted corresponding rewards or penalties.Excellent suppliers will be awarded the titleof "Muyuan AAAAA Grade Supplier".Muyuan will establish a de ep strategicpartnership with such suppliers andincrease the order volume. Those awardedwith such title for a successive six years willbe honoured with “Gold Supplier” and witha "Good Pig Award". Unquali? ed supplierswill be placed on Muyuan’s list of blacklistedsuppliers and be disquali? ed fromcooperating.
Cargill, Muyuan’s major auxiliary materials supplier, is one of the largest soybean crops traders in the world. It has beenworking with the industries, government and NGOs, and rolled out a soybean moratorium plan in Brazil, committingthemselves not to buy soybeans from farmers who cut forests and grow soybeans in the Amazon ecological zone, so asto jointly promote sustainable agricultural development.
Muyuan includes construction-related suppliers in its own environmental management, adopting speci? c preventivemeasures to control their impacts on the environment during construction, such as water, air, noise and solid wastepollution, and water and soil erosion. Muyuan requires the constructors to adopt scienti? c construction methods,such as the regular spraying of water, placing dust screens, and installing acoustic enclosures for equipment, to reduceenvironmental pollution.Muyuan also imposes strict requirements on the safety management of construction-related suppliers, requiring themto obtain production safety licenses, sign construction safety agreements, establish and improve safety productionaccountability systems and safety production education and training, and formulate safety production regulationsand operating speci? cations, etc. Muyuan also requires the construction-related suppliers to provide ? re?ghtingequipment and labour protection supplies to the workers and put forward requirements for controlling the safety risksduring construction, to safeguard the safety of the workers.
Sustainable soybean procurement
Control of environmental and social risks of construction-related suppliers
In addition, in order to avoid delays in the payment ofwages by suppliers to migrant workers for theconstruction projects, Muyuan requests the projectsupervisors to strengthen communication with theconstruction teams and migrant workers, and to pay themigrant workers at the scheduled payment time of eachproject. In order to further safeguard the rights andinterests of the migrant workers, Muyuan also collectscertain special deposits for wages of the migrantworkers from the constructors. In case of wage arrears,Muyuan will pay the migrant workers directly with thedeposits.
Supplier acceptance
To manage suppliers by category, Muyuan has established corresponding management and evaluationsystems, continuously monitoring suppliers’ strengths, quality management, ful? lment capability, costadvantage, environmental protection, integrity, etc., and issuing supplier evaluation reports.
Supplier management
Supplier evaluation and incentives
Work Together
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Muyuan is committed to working in depth with suppliers to maximise industrial chain bene? ts through the strategicdevelopment path of “general procurement – procurement by tendering – strategic procurement – ecological procurement",thereby achieving e? ciency and a win-win outcome. Focusing on the vision of "maximising the supply chain bene? ts toachieve e? ciency and win-win outcomes and promote social progress", we have established the following cooperativestrategies:
Muyuan constructs ecological industrial clusters around core enterprises. Based on the strong supporting policies from thelocal government, Muyuan helps suppliers solve their ? nancing di? culty and other development bottlenecks and helpsreduce production and operation costs; Muyuan also integrates resources of regional ? nancial institutions, and supports thoseinstitutions to break through the development bottleneck to realize leapfrog development; meanwhile, Muyuan introduceshigh-quality upstream suppliers to the local area, which helps improve the county economy, increase local taxes, andultimately achieve a win-win situation.
Muyuan has developed deep relationship with excellent suppliers to carry out joint R&D, and to continuously upgradetechnologies and equipment, with the view of common development and growth.
Neixiang Changxing Equipment Co., Ltd. is the whole-sitecleaning system supplier of Muyuan and has beencooperating with Muyuan since 2000. Muyuan madeconcerted e?orts to develop and design the whole-?eldcleaning system and pursue continuous optimisation andupgrading, resulting in a total cooperation of 300 million.As a result of this, the supplier obtained greater impacts inthe industry and became a benchmark company forproducing whole-site cleaning systems.
Henghui Agriculture and Animal Husbandry Company wasfounded in 2014 by the former sta? of Muyuan. With thestrong support of Muyuan, the county Party Committeeand the local government, Henghui became one of the? rst batch of enterprises to settle in the Agricultural andAnimal Husbandry Equipment Incubation Park in NeixiangCounty in 2017. Henghui insists in its mission, exerts to itsutmost, and always upholds its business philosophy of"serving customers wholeheartedly". In 2019, Henghuiachieved sales revenue of 330 million yuan and paid taxesof 10.32 million yuan, promoted employment of more than1,000 people, and donated social welfare donationmaterials equivalent to 1.5 million yuan.
Co-constructing Industrial Chain Ecology
Driving the Development of the Industrial Chain
The upgrading of new pig houses and the continuousgrowth of the Company have expanded the demand forair ? lters. Muyuan cooperated with domestic air ? ltermanufacturers to jointly research and develop and helpreduce the average cost of air ? lters from RMB 700 toRMB 200. The cooperation changes the former industrydilemma of high market saturation, high productioncost and small market space, and helps manyclose-to-collapse enterprises to regain development. Atpresent, the air ?lter demand of Muyuan has accountedfor 80% of the total domestic industry capacity, whichpromotes the development of the industry.
ExcellentExceptional
Great
Achieve success, cooperation and win-win resultsHelp clients to achieve success, lead industrialdevelopment and earn respect from othersBecome industry leader, and drive social progress
Joint innovation and win-win cooperationDeveloping strategic relationships and engaging in win-win
cooperation to promote social progress
Work Together
In 2019, Muyuan helped 274 small andmedium-sized enterprises and 25,504households in the supply chain, spending anamount of over 1.37 billion yuan. Through the? nancing modes, such as commercial billpledge, factoring and guarantee ? nancing,Muyuan’s supply chain enjoys great economicand social bene? ts. The innovative "grouppurchase" development mode and riskcontrol means greatly improved therevenue-cost ratio of small and medium-sizedenterprises, magnifying the scale economye? ect.For example, Shandong Huali Mechanical and Electrical Co., Ltd., whose main business is generator setmaterials, has achieved multiply increase in its business volume through integrating the government, banks andMuyuan’s supply chain platform, and has achieved mutual bene? t and win-win results. From 2018 to 2020, Hualihas cooperated with Muyuan in the amount of 35 million, 112 million and 800 million respectively.
Supply Chain Finance
CoreCompanies
Government
ExternalClients
Supplier
FinancialInstitutions
In 2020, the goal of Henghui is to achieve sales revenue of 0.8-1 billion yuan and paid tax of 20 million yuan, and torealize a “double 10 double 100 double 10 million yuan” target ("double ten double hundred" refers to the income of10 internal employees and 10 external partners will reach 1 million yuan; "Double 10 million" means that thecompany' s and the installation project’s tax revenue both reach 10 million yuan). Henghui is committed toestablishing a platform for common development and mutual bene? t.
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Muyuan develops international procurement channels and procurement networks and tunes a broad views of procurement.We set up various communication chan nels and platforms and take the initiative to engage in exchanges with suppliers todiscuss industry hot issues, for joint progress.Developing Comprehensive Communication
Supplier conferences
Foreign procurement inspection
We participated in the China Feed Amino Acids andFeed Raw Material Application Symposium tointroduce application technology and promote lesscommon vari eties of amino acid in pig feed. TheSymposium boosted technologies related tolow-protein diets in China and the application of lesscommon varieties of amino acid in feed, contributingto decrease of protein and nitrogen emission, andreduction of environmental pollution and theoccurrence of diseases.
With adherence to the service concept of “help customers succeed”, Muyuan keeps improving service quality throughcontinuous innovation, and optimising communication channels for customers to create value for customers and enhance theirsocial recognition and in? uence.
Enhancing Customer ExperienceCustomer Service Philosophy
Muyuan has built a full-chain system integrating pre-sale, in-sale and after-sale services, implemented front- and back-endservice mechanism for major customers, and optimised customer management to ensure customers have a good cooperativeexperience.
Muyuan has exerted every e? ort to build a bidding sales model, allowing customers to voluntarily bid on the same platformthrough an information-based sales bidding platform, practically implementing the principle of "zero negotiation, zerointervention, zero privileges and zero credit".
A complete, standard management process wasformulated through Muyuan’s customer relationshipmanagement (“CRM”) system. We developed workingstandards for six aspects and 30 speci? c projects, includingpotential customer maintenance, customer access andapproval, customer cooperation management, customerrelationship maintenance, customer exit management andcustomer complaint management. Furthermore, acomplete customer database was established forimproving the customer service management in allregions, to optimise the business processes, standardisecustomer services, and guarantee the quality of ourservices.
Customer Management Optimisation
CRMsystem
Biddingsalesplatform
Technical exchanges withveterinary vaccine suppliers
Accurately control thequality of pigs and ensuretheir health; assess thecustomers’ farmingtechnology andconditions of pig housesand then formulate atargeted service plan.
Pre-sale
Optimise sales processesto ensure the plan isexecuted smoothly ande? ciently.
In-sale
Pay attention to customerfeedbacks and comments,conduct follow-up visitsto monitor the growth ofpigs and provide nursingprograms to ensure thehealthy growth of pigspurchased by customers.
After-sale
Work Together
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Muyuan resolutely safeguards the right-to-know, right-to-choose, and other legitimate rights and interests of the customers,and designates speci? c customer information liaison persons to avoid forced sales. Muyuan draws up marketing risk mapping, formulates codes of conduct for business personnel, establishes mechanisms for pre-job training and regular upskilling training,and clari? es requirements on information con? dentiality, business connection, communication standards, and complainthandling in strict accordance with the requirements of the Advertising Law of the People' s Republic of China.Muyuan respects customer privacy and makes e? orts to protect customer’s information security. The Company uses CRMsystem to maintain and manage customer data and daily information which only allows access by sta? with appropriate rightscorresponding to their positions, to e?ectively prevent customer information leakage. Muyuan develops internal informationsecurity management policies, for which, the Company has established a monitoring mechanism, and it requires employees tosign a con? dentiality agreement, forming a management and control system that e? ectively protects customer privacy andinformation security.
Protecting Customers’ Rights and Interests
To e? ectively protect the interests of customers, Muyuan keeps optimising the Company’scomplaint handling mechanisms. By upholdingthe principle of “responding to every complaint,handling case by case, replying to each inquiry,and reaching consensus”, the Company hasarranged a dedicated customer service hotlineand set up a customer-speci? c business managerto actively communicate with customers andknow their needs, and to help solve their problemsin their transaction in a timely and e? cientmanner.
Improving Complaint Handling Mechanisms
Customer Complaints Handling Process
Make initialjudgement of thenature ofcustomer’scomplaint andgive customere? ectivereassurance.
Assign thecomplaintresponsible person,and report to thedesignated personimmediately incase of signi? cantcomplaint.
Combine with thefacts to formulatesolutionsaccording to theCompany’spolicies for speci? cproblems.
Conduct customerreturn calls within24 hours to ensurecustomersatisfaction inhandlingcomplaint.
Analyse thecauses andformulatemanagementplans to preventrecurrence
AcceptanceAssignmentProcessingCall backImprovement
Creating an industrial clusterMuyuan Insustrial Group Co., which is an entity beyond the Scope of the Report, actively promotes the construction ofindustrial cluster area and is explained as follows.
Illustrative drawing of the frist-stage project of the agricultural and husbandry
eqiupment industrial park
Work Together
Muyuan is at a stage of rapid development, with the demand for certain building materials dominating the market, even exceeding the market supply by several times. Considering the facts of each business, Muyuan integrates supplychain resources and allocates demands to the upstream and downstream enterprises to achieve a win-win result for all.In the fu ture, enterprises involved with agricultural and husbandry equipment will gather in Neixiang County, bringingforth a large gathering of logistics, talents and information ? ows, which will cater for the equipment needs of the entirelivestock industry. More resources are expected to be consolidated to create an ecological platf orm centred aroundMuyuan with numerous small and medium-sized enterprises. We aim to help suppliers grow and reduce costs, andultimately succeed together. In the future, focus will be put on competition among ecological chains, rather thanamong enterprises.The state-of-the-art agricultural and husbandryequipment industrial park launched by Muyuan isplanned to cover a total are a of about 1,500 mu andcost an investment of 3 billion yuan. The park isestimated to have an annual value of 15 billion yuan, tohelp create 4, 713 jobs and to generate RMB 350 millionof tax revenue. The ? rst phase of the park will be startedin October 2020, put into operation in succession by theend of 2020, and is expected to be completed by theend of 2021. After completion, it is expected to be ableto attract 200 enterprises to settle, realize an annualoutput value of RMB 5 billion, boost tax revenues of RMB150 million, and absorb more than 2,500 localemployees.
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Highlights
Combine knowledge with practice to bene? t society.Develop public welfare programs and be devoted to educationalimprovement to drive social and economic development.Adhere to our values and build a sharing platform.
— Muyuan Basic Law
Muyuan Ju’aiSupporting Public Welfare
Muyuan has been engaging in education assistance and donated a total of
400 million, covering 83 counties (regions) in 13 provinces. We havefunded 18,225 university students and 169, 586 primary andsecondary school students and rewarded 14,377 outstanding teachers.Muyuan is committed to public welfare and has donated a total of
173,197,400 to that purpose,, bene? ted 164,814 households and426,233 people.
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Upholding the concept of “Creating value, Serving society”, Muyuan actively undertakes its social responsibilities. TheCompany goes deep into communities where it is located to learn about the actual developmen t needs, and gives targetedsupport focusing on education, infrastructure construction, and other areas concerning people' s livelihood, devoting itself topublic welfare.
Education goes ahead of poverty alleviation. Muyuan insists on taking the education in impoverished areas as its duty. For thispurpose, the Company has implemented the “Ju’ai Project-Spring Rain Program”, “Ju’ai Project – Golden Autumn Program”and the “Ju’ai Project – Spring Seedling Program” to support the development of rural education by establishing a long-termmechanism that helps the poor and those in need, and awards excellent performers.
Assisting in Education by the Ju’ai Project
“We know that by cultivating an excellent student, we can warm a family, sow ahope, shape a future, and make the whole society better o? .”
Mr. Qin Yinglin, Chairman of Muyuan
Teacher Award Ceremony in the 14th “Ju’aiProject – Spring Rain Program”
Health Check for Teachers
The 12th “Ju’ai Project – Golden Autumn Program”
Scholarship Awarding Ceremony
This program rewards excellent elementary schoolteachers, and provides health checks, etc. to motivate theirteaching enthusiasm and improve the educational level inrural areas, changing the status of rural education. At thesame time, these actions have attracted attention from allsectors of society to rural education, and more and moreforces have joined in to contribute to the development ofrural education.
In 2019, Muyuan donated 40.19 million yuan in total, andawarded 9,735 outstanding educators and 570 educationalunits, bene? ting 93,000 students in 16 counties (districts) in 8provinces including Henan, Shanxi, Shaanxi, Hebei, InnerMongolia and Liaoning. In addition, Muyuan also input148,700 and worked with health check centres to customisehealth check packages for rural teachers, helping 301award-winning teachers in 32 schools to check for healthconcerns.
This program is to alleviate poverty through education and stop the intergenerational inheritance of poverty by fundingunderprivileged students to smoo thly graduate from universities or colleges. This program has not only helped to cultivateoutstanding talents, but also motivated local enterprises and people to participate in the educational assistance campaign,forming a more encouraging and fertile environment for education.In 2019, Muyuan funded over 7,000 underprivilegeduniversity students with a donation of RMB 19,387,600,covering 77 counties (regions) in 13 provinces, includingHenan, Hubei and Heilongjiang.In 2019, over 800 excellent students in Neixiang Countryreceived supports; of those, Muyuan funded 417 directly andmobilised more than 70 other enterprises and organisations tofund more than 400 students, creating a favourableeducational assistance environment and basis in the local area.In 2019, Neixiang Muyuan Education foundation, andZhongxiang Muyuan Poverty Alleviation Foundationcontributed a total of 4.2169 million yuan, which were used aseducation subsidies for pre-school stage, compulsoryeducation stage and senior high school students and as travelexpense subsidies for university students, relieving 6, 786students’ economic pressures of high tuitions.In order to further promote poverty alleviation through
Muyuan donates schoolbags and stationery for children inrural areas to help improve local educational conditionsand send care and warmth to the children.In 2019, Muyuan’s donation bene? tted 86,123 primaryschool students from 61 counties (regions) in 12 provinces,including Henan, Hubei, Shandong, etc.
Distribution of Schoolbags through “Ju’ai
Project – Spring Seedling Program”
Ju’ai Project – Spring Rain Program
Ju’ai Project – Golden Autumn Program
Ju’ai Project – Spring Seedling Program
Muyuan Ju’ai
Loan processing assisted by volunteerseducation, prevent students dropping out of school because of family ? nancial di? culties, and help more outstanding students planand get better growth, Muyuan implemented a series of measures, including Talent Program, Alumni Association, Ju’aiProject-Golden Autumn Program; through those measures, together with the national tuition subsidy, student loan reimbursement,Zhuge Talent Program and other policies, students can bene?t from the preferential policies of the state, the enterprise and theuniversity at the same time, so that they can realize their dream of entering into the university and successfully complete theirstudies. In 2019, Muyuan set up a team of 20 volunteers to assist more than 3,300 new college students to apply for student loansfrom their places of origin, and assisted 813 people to apply for Zhuge Talent Program, with a total amount of declaration of 3.88million yuan.
Sustainability Report 2019
Muyuan Foods Co., Ltd.
51,1499,3843,983
While seeking for self-development, Muyuan keeps in its heart to give back to society with gratitude. Supported by theCompany’s advantages and resources, Muyuan actively promotes community development and devotes itself to public welfareand charity.Infrastructure construction is the basic guarantee for people' s livelihood and is also the foundation and prerequisite forimpoverished areas to achieve poverty alleviation and realise prosperity through industrial development. Over the years,Muyuan and its parent company have input 712 million to help impoverished areas to build roads and bridges, constructdrinking water projects, construct cultural squares, improve the teaching environment etc. This improved the living quality ofresidents, created a favourable environment and conditions for industrial development in impoverished areas, and laid a solidfoundation for poverty alleviation.In 2019, Muyuan donated 128,749,200 yuan to support the construction of community infrastructure, bene? ting 151,944households and 405,278 people.
At the same time, 1,574,600 was donated to 24 community villages in 14 counties (regions) of 8 provinces to help renovateinfrastructure, improve village committees and purchase o? ce facilities, contributing to the undertaking of rural revitalisationwith improved collective o? ce conditions and optimised community environment.
Supporting Community Construction
Assisting in Rural Revitalisation
Implementation Pro? le in 2019 of Muyuan Ju’ai Project
The teacher from Xilaohezhai Primary School
rewarded by the Ju’ai Project
Xilaohezhai Primary School is located at BanpodianVillage, Huaxian County, Anyang City, HenanProvince. This school is an impoverished schoolwith a lower ranking in overall scores among othervillage and township schools. To mobilise thetea ching enthusiasm of rural teachers, Muyuancontributed 94,500 yuan through the “Ju’ai Project -Spring Rain Program”, to reward outstandingeducators in this school. Xilaohezhai PrimarySchool went up from 10th to 3rd among townshipschools in terms of students’ scores.
Case Study: Ju’ai Project – Spring Rain Program
1,8551,973
Three thousand eight hundred and eighty-six
Two thousand and thirty-eight
Six thousand one hundred and seven
Seven thousand five hundred and seventy-eight
4,646HenanShaanxi
GansuShanxi
JilinInner Mongolia
HeilongjiangLiaoning
Hebei
ShandongJiangsuAnhuiHubei
1,85915
Six thousand seven hundred and ten
One thousand eight hundred and forty-two
Two thousand two hundred and eighty-six
Spring Rain Programthe number of awarded personsGolden Autumn Programthe number of awarded personsSpring Seedling Programthe number of bene? ted persons
Donated491,600 yuan tobuild 19 “lovesupermarkets”.Donated126,441,500yuan torepair278,600meters ofroads, whichsolved thetravelproblems of343,552people.
Donated912,100 yuan tolay 54,815meters ofdrinking waterpipes in 10communityvillages, whichsolved thedrinking waterproblem of5,244 people.
Donated 46,300yuan toconstruct 2,577m
of culturalsquares in 4communityvillages, whichbene? ted 5,988people.
Donated447,200 yuanto install 2,282streetlamps for12 communityvillages,lighting up theway going outat night for50,494villagers.
Donated3,012,700 yuan to15 schools forschoolconstruction,school culturalactivities and thepurchase oftables and chairs
Muyuan Ju’ai
Sustainability Report 2019
Muyuan Foods Co., Ltd.
On February 15, 2019, Mr. Qin Yinglin, Chairman of Muyuan, donatedshares in Muyuan with market value of RMB 100million to Hangzhou Westlake Education Foundation. On 20April 2020, Qin Yinglin voluntarily donated, for the secondtime, shares in Muyuan with market value of RMB 800million to Hangzhou Westlake Education Foundation tosupport basic research and cutting-edge technological innovation of Westlake University and assist the university inpersonnel development, teaching and technologicalresearch.
Through its public welfare activities, Muyuan has gradually created a public welfare platform accessible to everyone, encouraging and mobilising the broad participation of volunteers, and has formed a complete volunteer managementmechanism. In addition to university student volunteers, Muyuan also actively organises employees to participate in publicwelfare activities, spreading the public welfare ideas of Muyuan along with extensive involvement of both internal andexternal volunteers in public welfare activities, and creating a favourable public welfare ecology. In 2019, Muyuan publicwelfare platform organised more than 3,100 volunteer services totalling 31, 000 hours, including more than 500 volunteerservices by university students and about 2,600 by Muyuan employees.
As an active member in promoting China’s traditional virtue of “helping those in distress and relieving those inneed”, Muyuan has been sending care to socially disadvantaged groups. The Company keeps providingdonations to support people' s livelihood and conducting targeted assistance to disadvantaged groups to helpmore people in need. In 2019, Muyuan donated 44,448,200 to help those in distress and need, bene? ting atotal of 12,870 households and 20,955 people.
Helping Those in Distress and Relieving Those in Need
Creating a Public Welfare Ecology
“For me, Muyuan is a very responsible company that is concerned about public welfare and acts inresponse to the call of the state to participate in the ? ght against poverty. I am very honoured to be oneof Muyuan’s volunteers. It is within my ability to distribute schoolbags to children, while the happy smileon the child' s face makes me feel that everything is beautiful. I will participate in more volunteeractivities of this kind and play my part in it! "
— University student volunteer
“I was lucky to be part of this event which gave me the chance to see the kids' hopes for the future. Iwas excited and happy to see the happy smile and felt that everything was worth it. Participation inthese public welfare activities enables me to exercise di? erent personal values. In the future I will payattention to and participate in more public welfare activities, bringing warmth to more people.”
— Employee volunteer
There are 320 primary school students in FenglouPrimary School at Guhuai Street, Pingyu County,most of whom are left-behind children. In 2019, Muyuan worked with the school and educationdepartments to donate 60 sets of desks and chairs,20 computers, and 320 schoolbags to FenglouPrimary School to improve the learningenvironment and send warmth to the children leftbehind.
Caring for left-behind children
In 2019, Muyuan headquarters initiatedvoluntary blood donation activities themed“with boundless love, and linked by blood, Muyuan is in action for voluntary blooddonation”, which attracted 110 employees toparticipate and which lead to the donation of43,800 ml blood in total.
Voluntary blood donation
Entities beyond the Scope of the Report have also made important contributions to Muyuan' s public welfareundertakings, speci? cally involving the major participation of Muyuan Industrial Group Co., Ltd. and the Chairman QinYinglin, etc., and are explained as follows.Contributing the construction of Westlake University
Muyuan Ju’ai
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Highlights
Be people-oriented and bring bene? ts to employees. Treat employees asfamilies to help them develop. Build career platforms to help them realiseworth in life; let every employee and every family be happy and enjoy ahappy life in the paradise of Muyuan.
— Muyuan Basic Law
People-OrientedContributing to Their Happiness
Total employees: 50,319, which is 167% more than that of 2018.Training coverage: 100%.Upgraded compensation structure from platform compensation tocomprehensive compensation.Total promotions: 4,032.
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Establish “company-department-farm” safety prevention and control mechanisms coveringall links including new employee orientation, on boarding and daily operation, and directlyrelate the production safety management to the result of performance appraisal.Establish a company-wide production safety management mecha nism, a production safetymanagement model that is decentralised from the Company to the smallest business unit(i.e., from company to department to o? ce to team), and develop a sound productionsafety training system to be implemented by the Company and all departments.
Muyuan adheres to the concept that “safety underpins employees’ bene? t and the legal operation of enterprises” and theprinciple of “prevention-? rst, and people-oriented, with managerial responsibility policies” for the management of productionsafety, strictly guaranteeing the health and safety of employees.In accordance with the Work Safety Law of the People’s Republic of China, Penalty of Fine in the Regulations on Reporting,Investigation and Handling of Work Safety Accidents and other relevant laws and regulations, Muyuan has formulated andupdated relevant policies including the Manual on Standards for Safety Conducts of Employees and Provisional Measures for the Assessment of Personal Safety Accidents. Besides, the Company has established a mechanism for the management ofproduction safety, and impresses the information on relevant rules and regulations, standard operations, risk maps, and othersafety regulations onto employees to ensure that production safety training reaches to all sta? .
Guaranteeing Health and Safety
Full Coverage of Production Safety Management Mechanism
All linkscoverageCompany-wide
coverage
28.1%
56.3%6.7%
71.9%
9.2%35.3%
0.3%
43.7%
55.5%
93.0%
14.4%
85.6%
MaleFemaleHanEthnic minorities
Within Henan ProvinceOutside Henan Province
Basic employeesSenior management
Middle management
Under 30 years old30-50 years oldover 50 years old
By gender
By regionBy job level
By ageBy ethnicity
Since 2016, Muyuan has cooperated with universities and colleges across the country to jointly explore ways ofcultivating applied talents and realised positive in teraction between universities and enterprises. Muyuan hasestablished close and friendly interaction with various colleges and universities, including China Agricultural University,Jilin University, Tianjin University, Jilin Agricultural University, and Nanyang Institute of Technology by ways of settingup a internship and employment practice opportunities, joint classes, technological cooperation, corporate studytours, etc., to jointly cultivate all-round talents with equal emphasis on theory and practice.As of the end of the reporting period, Muyuan has trained more than 2,300 university students by joining up withvarious colleges and universities.
As of the end of the reporting period, Muyuan had 50,319 employees working in full-time. The speci? c employee structure is as follows:
Strengthening university-enterprise cooperation for talent introduction
Muyuan attaches great importance to talentintroduction. Combined with the actualbusiness needs, we hire specialists in science inintelligence, mechanical, and energyengineering in management, ? nance, food, etc.We strive to accelerate industrialtransformation through technologicalinnovation, and lead the way in smart pigbreeding. During the reporting period, Muyuanrecruited nearly 10,000 university graduates.
Introducing Talented People
People with pure characters and high socialresponsibility
Sta? selection principle – the virtuous root
People with integrity, sticking to principlesHonest people courageously taking responsibilitiesOpen-minded people willing to share and devotethemselves
Sta? appointment principle – the value criterion
Talent concept
Muyuan strictly abides by the principle of “equal employment” during recruitment, and does not discriminate against any jobapplicant due to their race, gender, skin colour, age, family background, national tradition, religious belief, physical ? tness,original nationality or other personal characteristics, ensuring that everyone is fairly treated at work. Muyuan has 8 employeesin senior management now, 2 of which are female, accounting for 25%.To strictly implement the requirements of laws and regulations such as the Provisions on the Prohibition of Using Child Labour, Muyuan prohibits any subsidiaries from recruiting juveniles under the age of 16, and completely eradicates the use of childlabour. Muyuan puts vigorous e?orts to support local workers and drives local employment. The Company hires workers in thelocations where its subsidiaries are located to absorb local labour forces. And the rate of local employment is 84.86%. In 2019,Muyuan launched more than 2,000 job fairs for subsidiaries and hired more than 26,000 local labour .
People-Oriented
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Training System
Promotion System
Muyuan organises on-board training on production safety for newemployees every month, including rules and regulations, risk maps, standardised operations, etc. Only those who pass the exam aftertraining can o? cially get to work. During the reporting period,Muyuan provided various production safety training (includingdrills) targeting at all employees, while department headsorganised production safety case studies for employees at leasttwice per week, integrating production safety training into dailymanagement. Muyuan organises training on production safety forall employees. Major trainings for Admin istration Department andother low risk groups include vehicle safety management, drivingsafety, electrical safety, etc. Major trainings for the front-lineoperations include pre-employment orientation on job risk maps,on-site construction safety, winter production safety, daily updateconference on production safety incidents, etc.
Adhering to the concept of “Combining the selection system with training, cultivating a better person with tutelage from thebest person, realising circular empowerment”, Muyuan has developed a complete training system and promotionmechanism to enhance the core competitiveness of employees and the Company alike while meeting personal developmentneeds of employees.
Muyuan has established a scienti? c promotion channel that provides clear career paths for employees. Muyuan also allowsemployees to adjust their promotion channels based on di? erent development directions so to stimulate their maximumpotential, achieving growth and development of both the Company and the employee.Muyuan relates promotion channels to quali? cations for each position and clari? es achievements and capabilities requirementsfor each level. We establish a quali?cation system for personnel promotion and inform employees of speci? c promotionrequirements, to ensure that all employees have a clear understanding of quali? cations required for each position and drive theirdevelopment.Adhering to the concept of “result-oriented”, we establish a mechanism for employing people able to take a lower as well as ahigher posts, to fully stimulate the vitality of the organisation. The Company follows the ? exible leader allocation of “youth,technology, independence, tiered and rotation system”, we cultivate well-rounded leaders and give opportunities for moreyoung people to demonstrate themselves in order to support the development of the Company.
Muyuan o? ers a wide range of courses to employees through an intelligent learning platform. The platformcompares sta? and position portraits to identify the gaps in employees’ capabilities, promotes targeted coursesbased on job requirements, and provides learning, examination, certi? cation, etc.
Values concerning responsibility, value, wealth, etcMuyuan develops a comprehensive training system to provide targeted trainings on values, management skills andbusiness capabilities tomanagement, university students, and vocational technicians.
Muyuan establishes a curriculum resource centre that provides speci? c business cases, both internal and external, for case studies and practices.Muyuan sets up a complete lecturer pool and formulates relevant management methods that require allmanagement cadres to work as lecturers, cultivating better managers with tutelage from the best managers.
Muyuan follows the incentive principle of “those who create, will bene? ts; those who create ? rst, gain ? rst; those who createmore, gain more” that shares the enterprise value with its employees. As at the end of the reporting period, Muyuan hadimplemented three Employee Stock Ownership Plans and one Restricted Stock Incentive, with over 6,000 employees holding
11.08% of the total share capital. The net return of phase I was 359%, and of phase III was 149%, which demonstrated that
employees truly realised their life value and enjoyed an abundant life ahead of time in Muyuan.Muyuan promoted the comprehensive compensation, in an e? ort to stimulate all of Muyuan employees throughcomprehensive compensation programs such as outstanding pay, equity allocation, learning, promotion, opportunities,honours and bene? ts, and made everyone a successful struggler winning the highest compensation with their abilities andperformance so to realise their life values and enjoy an abundant life.
Innovating Incentives
Supporting Employee Development
In 2015, Muyuan put forward its wealth goal:
realise the following goals in 10 to 20 yearsSeeding Project: form 10,000 well-o? families with a wealth of 1 millionCultivating Project: form 1,000 rich families with a wealth of 10 millionCon? guring Project: form 100 extremely wealthy families with wealth of 100 million
Explicit compensation
Values training
Business trainings by departments: special class for Production Director/Field
Director/Unit Head, subsidiary managers, veterinarians, etc
Orientation for grassroots sta? : safety, skills, culture, rules and regulations
Businesstrainings
Vision management, goal management, method and tool training, performance
management, team management, etcManagementtraining
OutstandingCompensation
Stock rights
Honours and
trust
Bene? tsLearning
Basic salaryPerformancebonusBonus forlong-term servicesOther awards
Loyalty +deliverablesStock allocationStockincentive plan
ValuesLoyaltyDeliverables
Potential
Honours
Trust
Implicit compensationOthers
Build an intelligent learning platform
Improve training system
Integrate curriculum resourcesEstablish lecturer pool
OpportunityPromotion
Pension insurance,medical insurance,
unemploymentinsurance, work injuryinsurance, maternityinsurance, and housing
provident fundZhuge Talent PlanTuition compensatory
House
People-Oriented
Sustainability Report 2019
Muyuan Foods Co., Ltd.
In 2019, Muyuan built a sta? -position portrait system that assesses the position portraits and sta? from achievements,capabilities, specialism, intelligence and habits, supporting the accurate selection of talent as well as smart and preciseempowerment, and enhancing the competence of talents selected.
Adhering to the concept of “cultivating employees with culture and enabling employees to achieve in work”, Muyuan makescontinuous e? orts to improve the Company’s cultural system and organises various employee cultural activities with Muyuancharacteristics, integrating Muyuan culture into employees’ daily work.
Strengthening Employee Communication
Promoting Muyuan Culture
Muyuan takes initiatives to cultivate a sense of ownership among employees, guides employees to be involved in thedevelopment of the Company and creates an all-round communication channel for employees. Employees can providefe edback and suggestions to the management and departments by means of communication, appeals, workers congress, etc.The Company will follow up and implements reasonable opinions or suggestions by employees.Muyuan has formulated the system of workers congress, where employee representatives can participate in operation andmanagement related decision-making, review and discusses issues such as the rewards and punishment policies, labourprotection, and important rules and regulations a? ecting tangible bene? ts of employees.
Enjoying Abundant LifePosition portrait
Certi? cationandassessment
Calculation ofsta? -positionmatching degree
Candidaterecommendation
Selection andappointment
CEOExecutive/Senior/Vice president
Regional Production Director
Production DirectorFarm Director
DirectorSenior SupervisorSupervisorSection Head
Senior High Administrator
Senior AdministratorJunior Administrator
Primary Engineer
Chief O? cer/General Manager
22 June is Muyuan’s special festival, the Pig Breeding Festival. On this day, Muyuan held the Pig Breeding Festival & Award Ceremony that inherits thecorporate spirit of “value, sharing and dedication”, and select outstanding sta? .In 2019, the Pig Breeding Festival was held under the theme of “cross-bordertransformation and breakthrough to open a new chapter with unmannedoperation”. We h anded out three awards in innovative R&D, performanceachievements, and outstanding contribution for the control of ASF, o? eringprize nearly 20 million in total.
Pig Breeding Festival – a cultural event for Muyuan people
Mother-Child Project is a platform constructed by Muyuan for employees andtheir children to communicate, learn and develop. Muyuan always adheres to itsoriginal purpose of "making every family happy” and organises various summerclasses, summer camps, mother-child project meetings, etc. to participate in thegrowth of every Muyuan child.In August 2019, Muyuan held the 28th Mother-Child Project Meeting under thetheme “it is time for young people to make a dream and set sailing”, whichaimed to help every child grow up healthily and happily. At this meeting, a totalof 37,000 books were distributed to the “second generation of Muyuan”.
Mother-Child Project – making every family happy
Muyuan is willing to provide fertile soil for every dream and blue sky for everyambition. Since 2008, Muyuan has held 11 sessions of corporate culture andmanagement training. During the corporate culture training every year, fromthe headquarters to the subsidiaries, from the feed plant to the farm, allemployees, on the basis of ensuring daily production and operation,participated in the training and gained growth.
Corporate culture and management training — let every employee growth and change
“Let successors stand on my shoulders to achieve success in their lives!” Muyuan organises the Apprenticeship Ceremony every year around Teachers’Day to pass on the apprenticeship culture of Muyuan and carry forward thevalues of “daring to take responsibilities and giving back with gratitude”.
Masters teach apprentices to pass on the ? ame from generation togeneration – Muyuan Apprenticeship Ceremony
PhoneTeam building
FormalcommunicationDailycommunicationCultural and sportsactivities
WeChat/Work WeChatOnline investigation, video communication, etcWork reports and other written documentsWorker CongressEmployee meetingWork meetingFace-to-faceE-mailMessageInformalcommunication
In 2019, Muyuan recruited more than 1000 graduates from more than 100 colleges and universities in 14 provinces.From July 13 2019, Chairman Qin Yinglin, Executive Vice President Cao Zhinian and the Muyuan' s senior managementteam trained and empowered those new employees, and carried out a 76-day training, including military training, corporate culture training, department business practice training and management ability enhancement training; thosetrainings enabled those new employees to shift their roles from a student to an employee, and to improve theircomprehensive ability."Seize every minute and great achievements can be made in the vast world", all employees in Muyuan learn and growthrough the corporate culture training, accumulating energy to better apply their talents on the job and further tobetter realize their dreams and create value!
People-Oriented
On 9 September 2019, Muyuan held a grand event for the 11th Apprenticeship Ceremony under the theme of “makingcross-border growth to realise great development, and passing on the ? ame to achieve a lasting business”. Our seniormanagement, representatives of outstanding masters and apprentices and new employees recruited in 2019 attended thisceremony. Since the ? rst Apprenticeship Ceremony in 2009, the number of masters and apprentices reached 14,000 and28,000 respectively.
In addition, Muyuan thoughtfully organises summer classes and hires experienced and outstanding teachers to providefree professional homework and special interest guidance for children; arranges summer camps on historical sites,humanities and technologies to train independent thinking and team working among the children through experientialactivities and games.
Sustainability Report 2019
Muyuan Foods Co., Ltd.
OutlookStrictly following the Labour Contract Law of the People' s Republic of China and related laws and regulations, Muyuan signslabour contracts with all employees and pays pension insurance, medical insurance, unemployment insurance, work injuryinsurance, maternity insurance, and housing provident fund for employees. At the same time, Muyuan continues to improvethe employee welfare system, for which purpose, the Company has created the Project of Happiness that comprehensivelypromotes the “family culture of Muyuan”, in an e? ort to improve life quality of employees through “enjoying wealth”, “raisingchildren”, “enjoying life”, “keeping health”, etc.
Creating the Project of Happiness
Enjoying wealthRaising childrenEnjoying lifeKeeping healthLife in Muyuan:
Muyuan o? ers employeesinternal discounts topurchase houses viamultiple high-qualityhousing projects includingElite Mansion and Tianlufu.Muyuan Loan:
Muyuan o? ers “MuyuanLoan”, a safe, fast,low-interest rate andunsecured loan service toemployees working inMuyuan for over one yearto meet their fundingneeds and solve the? nancial problems thatthey may have.
Muyuan works withseveral primary andsecondary schools that areopen to all children ofemployees, helpingMuyuan’s employees toget better educationresources for their kids.
Birthday blessings:
Muyuan organises groupbirthday parties on anirregular basis and sendsbirthday blessings toemployees.Warmth and sympathy:
Send cashes and gifts toemployees in case ofweddings and funerals, andgive blessings and regards.
Protect health:
Muyuan provides physicalexamination services foremployees.
Speciality catering:
Muyuan provides rationallyselected, nutritious andreasonable price cateringservices at cost price. We setup a bu? et restauranto? ering a customised menuof “Muyuan Flavour”, wherethe sta? can make anappointment for the chef toprovide on-the-spot cookingand enjoy the delicious food.
Recreation and ? tness:
Provide various recreationaland sports facilitiesencouraging employees tobalance their work and life; set up supermarket, drycleaner, hairdresser, medicalroom, gym, swimming pool,etc. to satisfy employees’living needs.
Through the e-commerce platform “Ju’ai Youxuan", Muyuan provides a full range of quality products and services
covering “cloth, food, house, transportation, consumption, entertainment and wealth”.
Ju’ai Youxuan – providing quality products to employees
The e-commerce platform “Ju’ai Youxuan", which is beyond the Scope of the Report, is the main medium for Muyuan to
provide high-quality products and services for its employees. The speci? c practices beyond the Scope of the Report are
explained as follows.
In 2019, Muyuan integrated resources from various channels, and selected
over 4,000 products under the categories of rice & noodles, imported beauty
& personal care, electrical appliances, automobile group purchase, maternity &
child, and local specialities to launch on the platform. At the same time, it also
provided many warm services to sta? , such as vehicle insurance processing,
health examination, parent-child travel, livelihood materials support, and
holiday bene? ts.
Looking forwards, Muyuan, amid a market environment where challenges and opportunities coexist,will stick to the development principle of “green, focused, innovation, win-win-results”, and uphold thedevelopment concept of “creating value, serving society” to realise the Company' s grand goals. Muyuanis playing a more important role in the economy, society and environment while realising healthy andsustainable development, working with people to create a better life.
Food Safety:
We will continue to take the advantage of the “large-scale and integrated” model and extendbusinesses to include pig slaughter and meat products proces sing while comprehensively upgradingthe quality and safety management system and expanding the scale of pig breeding, so to achievewhole-process control and guarantee the safety of pork food. We will further speed up technologicalR&D and innovation to upgrade the smart pig breeding model, providing a number of innovativepractices for the development of the breeding industry.
Public Welfare:
We will actively promote and replicate the “3+N” poverty alleviation model to help more people berelieved from poverty and become rich, and assist in the overall success in the ? ght against poverty. Wewill integrate industrial development with local economic and social development and keep most ofthe value created at local plac es to drive regional economic development and employment. We willintensify input to sectors relating to people’s livelihoods, such as education and infrastructureconstruction and provide public welfare support by organising activities to help and care forvulnerable groups .Environmental Protection:
We will improve the environmental management system, deeply implement the “? ve steps ofenvironmental protection”, continuously innovate environmental protection technologies, raiseenvironmental protection standards, and develop the circular economic model of “breeding-biogasmanure-ecological agriculture” to reduce adverse impacts on the ecological environment.Win-Win Cooperation:
We will further deepen the ecological construction of the industry, strengthen control onenvironmental and social risks in the industrial chain, and promote sustainable development of bothupstream and downstream industries for mutual achievement.
Employee Care:
We will continue to improve the talent development system, attach importance to the cultivation ofyoung talents, provide a broad career development platform for outstanding talents, actively safeguardemployees’ rights and interests, enhance employees’ sense of gain and happiness, and share value andco-create with employees.
People-Oriented
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Muyuan Social Responsibility IndexPillar
MuyuanConcernedIssues
Muyuan PerformanceSection (s)
Economic
Financialperformance
Total assets in 2019: 52.887 billionRevenue in 2019: 20.221 billionNet profit in 2019: 6.336 billionPigs Sold in 2019: 10,253,300
Company ProfileCorporategovernance
The Board consolidates corporate governanceAnti-corruption and Business Ethics
Corporate
GovernancePromoting localemployment
Local employment rate: 84.86%
Introducing
Talented PeopleIndustrialinvestment
Poverty alleviation industrial investment: 28.82 billionRealized employment in poor counties: more than 30,000people
Topic 2: Further
Promotion of
Targeted Poverty
Alleviation
Social
Compliantoperation withintegrity
Observe disciplines and lawsOperation with integrityCompliant operationConducted 5 sessions of integrity training with a total of 3,511participants
Corporate
Governance
Ensuring foodsafety
Recurrent binary breeding systemPass rate for feed raw materials: 100%Implement FSSC 22000 management system, pass rate forsampling inspection on raw materials of feeds: 100%Pass GLOBAL GAP certificationThe whole process can be tested, verified and traced backPass rate for sampling inspection on pig products: 100%Perfect harmless treatment system with zero outflow of sickand dead pigs
Guaranteeing
Safety and Quality
Providing high-quality pork
Supplied pigs: 10,253,300Supplied safe and wholesome pork: 656,000 tons, accountingfor 1.55% of the national suppliesMet 16.93 million people’s demands for pork
Topic 3: Industrial
Upgrading of ASF
PreventionSafeguardinganimal welfare
Good Pig Production Award 2019Comprehensive protection of animal welfare, includingphysical welfare, health welfare, environmental welfare,behavioural welfare, mental welfare
Committing to
Animal WelfareFacilitating povertyalleviation
Poverty alleviation model of “5+” asset-based income hadhelped about 140,000 registered poor households and350,000 poor people in 49 counties (regions) in 12 provinces,bringing them 540 million income
Topic 2: Further
Promotion of
Targeted Poverty
AlleviationSupportingcommunityconstruction
Donated a total of 173,197,400 to public welfare during thereporting period that benefited 164,814 households and426, 233 peopleAccumulated capital contribution of 712 million to helpimpoverished areas to build roads and bridges, dig wellsand connect water pipes, construct cultural square, improveteaching environment etc.
Supporting
Community
Construction
Pillar
MuyuanConcerned
Issues
Muyuan PerformanceSection (s)
Social
Public welfare andcharity
Continously engaged in “Ju’ai” education assistanceprograms, donated a total of 400 million that funded 18,225university students and 169, 586 primary and secondaryschool students and rewarded 14, 377 outstanding teachersfrom 83 counties (regions) in 13 provincesDonated Muyuan shares with a market value of 900 millionto Hangzhou Westlake Education FoundationEstablished a public welfare platform accessible to everyoneto encourage and mobilize the broad participation ofvolunteers, and to create a public welfare ecology
Assisting inEducation by Ju’aiProjectSupportingCommunityConstructionOccupationalhealth and safety
Full coverage of production safety management mechanism
GuaranteeingHealth and SafetyCaring for andrespectingemployees
Comprehensive and sound employee welfare system; Family culture and employee care
InnovatingIncentivesEnjoying anAbundant LifeProtection ofemployees’ rightsand interests
On-time payment of employee payroll social insurancepayment rate: 100%Labor contract signing rate: 100%Labor union participation rate: 100%Improve comm unication mechanism and guaranteedemocratic rights
InnovatingIncentivesEnjoying anAbundant LifeEmployee trainingand development
Sound training system: value training + managementtraining + business trainingEstablished a scientific promotion channel, perfected thepromotion mechanism
SupportingEmployeeDevelopmentBuilding asustainable supplychain
Strict supplier management mechanismSuppliers that signed formal contracts: 100%Proportion of electronic procurement: 100%Rate of signing environmental protection agreements: 100%Rate of signing integrity agreements: 100%Promoted the development of industrial chain partners
StrengtheningSupplierManagementDeliveringSustainable ValueScientific andtechnologicalinnovation
R&D investment: 112 millionR&D talents: 786A total of 156 utility model patents, 1 design patent and 25invention patentsCreated three-prevention pig farms, leading industryupgradingApplied artificial intelligence, realizing cross-bordertransformation and breakthrough
Topic 4:
TechnologyInnovationLeading theUpgradeEpidemicprevention
Biosafety management system, scientific epidemicprevention and supply guaranteeEquipment innovation, three-prevention pig farms, leadingindustry upgradingJoint prevention and control to fight against epidemic
Topic 3: IndustrialUpgrading of ASFPreventionCustomer servicesand protection ofrights and interests
CRM system, full process servicesPerfecting the customer feedback systemStrict privacy protection mechanism
EnhancingCustomerExperience
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Pillar
MuyuanConcernedIssues
Muyuan PerformanceSection (s)
Environment
Construction ofenvironmentalprotection system
Environmental management mechanismInformation-based environmental management platformGreen culture, green office and garbage classification
InnovativeEnvironmentalManagementConceptEnergyconservation
Air consumption per hour: 65 m? /pigClean production management system; Energy-saving technology and technological innovation
Building CircularEconomyWater resourcesmanagement
Freshwater consumption: 1.6m? /pig on the marketBuilding Circular
EconomyEmissionsreduction
High standard of odour controlGreenhouse gas emission 0.55 kg CO? e/kg live-weight, 20%drop, leading the industryZero discharge of wastewater, application of biogas slurryto fields, zero discharge of COD and ammonia nitrogen (inwastewater) among farmsComprehensive utilization of solid waste
Building Circular
Economy
Biodiversity andland use
High standard and strict requirements in site selectionImproved the soil, harnessed 12,900 mu of desert, improve27,400 mu saline alkali land, soil organic matter increased by
33.28%, fertilizer application decreased by 18.12kg per mu,
production increased by 90.8kg per muLand occupation: 2.3 m
/pig, land utilization rate increasedby 23%
Building CircularEconomy
Ecological circulareconomy
In 2019, the length of pipelines for returning Muyuan’sbiogas slurry to fields reached 4.96 million meters, and thearea of fields irrigated by biogas slurry was 960,000 mu, withfertiliser applied to per mu of farmland decreased by 17% onaverage2, 194 rounds of agricultural and technical services wereprovided to a total of 90,705 farmers from 355 villages
Building CircularEconomy
GRI Standards Index
GRI StandardsDisclosure TitleSection(s)
Organizational
profile
102-1 Name of the organizationCompany Profile102-2 Activities, brands, products, and servicesCompany Profile102-3 Location of headquartersCompany Profile102-4 Location of operationsCompany Profile102-5 Ownership and legal formRefer to Annual Report102-6 Markets servedCompany Profile102-7 Scale of the organizationCompany Profile102-8 Information on employees and other workers
Company ProfileIntroducing Talented People102-9 Supply chain
Strengthening SupplierManagement102-10 Significant changes to the organization and its supplychain
Refer to Annual Report102-11 Precautionary Principle or approachSocial Responsibility Strategy102-12 External initiatives/102-13 Membership of associations/
Strategy
102-14 Statement from senior decision-makerChairman’s Statement102-15 Key impacts, risks, and opportunitiesChairman’s Statement
Ethics and integrity
102-16 Values, principles, standards, and norms of behaviour
Company Profile
Corporate Governance102-17 Mechanisms for advice and concerns about ethicsCorporate Governance
Governance
102-18 Governance structure
Corporate Governance
Social Responsibility
Management Framework102-19 Delegating authority/102-20 Executive-level responsibility for economic, environmental,and social topics
Social Responsibility
Management Framework102-21 Consulting stakeholders on economic, environmentaland social topics
Stakeholder Communication102-22 Composition of the highest governance body and itscommittees
Corporate Governance102-23 Chair of the highest governance body/ 102-24 Nominating and selecting the highest governance bodyRefer to Annual Report102-25 Conflicts of interestRefer to Annual Report102-26 Role of highe st governance body in setting purpose,values, and strategy
Social Responsibility
Management Framework102-27 Collective knowledge of highest governance body
Social Responsibility
Management Framework102-28 Evaluating the highest governance body’s performanceRefer to Annual Report
Muyuan Social Responsibility Index
Sustainability Report 2019
Muyuan Foods Co., Ltd.
GRI StandardsDisclosure TitleSection(s)
Governance
102-29 Identifying and managing economic, environmental, andsocial impacts
Social ResponsibilityManagement Framework102-30 Effectiveness of risk management processesRefer to Annual Report102-31 Review of economic, environmental, and social topicsMateriality Assessment102-32 Highest governance body’s role in sustainability reporting
Social ResponsibilityManagement Framework102-33 Communicating critical concernsCorporate Governance102-34 Nature and total number of critical concernsC orporate Governance102-35 Remuneration policiesRefer to Annual Report102-36 Process for determining remuneration/ 102-37 Stakeholders’ involvement in remuneration/102-38 Annual total compensation ratio/102-39 Percentage increase in annual total compensation ratio/Stakeholderengagement
102-40 List of stakeholder groupsStakeholder Communication102-41 Collective bargaining agreementsEnjoying Abundant Life102-42 Identifying and selecting stakeholdersStakeholder Communication102-43 Approach to stakeholder engagementStakeholder Communication102-44 Key topics and concerns raisedStakeholder Communication
Reporting practice
102-45 Entities included in the consolidated financial statementsAbout the Report102-46 Defining report content and topic BoundariesAbout the Report102 -47 List of material topicsMateriality Assessment102-48 Restatements of informationNo significant change102-49 Changes in reporting
About the ReportMateriality Assessment102-50 Reporting periodAbout the Report102-51 Date of most recent report/ 102-52 Reporting cycleAbout the Report102-53 Contact point for questions regarding the reportStakeholders Feedback Form102-54 Claims of reporting in ac cordance with the GRI StandardsAbout the Report102-55 GRI content indexGRI Standards Index102-56 External assurance/
Management
Approach
103-1 Explanation of the material topic and its BoundaryStakeholder Communication103-2 The management approach and its components
Social Responsibility StrategyStakeholder Communication103-3 Evaluation of the management approachStakeholder Communication
GRI StandardsDisclosure TitleSection(s)GRI 201:
EconomicPerformance
201-1 Direct economic value generated and distributedCompany Profile201-2 Financial implications and other risks and opportunitiesdue to climate change
Circular Economy, RealisingSustainable Development201-3 Defined benefit plan obligations and other retirementplans
/201-4 Financial assistance received from government/
GRI 202:
Market Presence
202-1 Ratios of standard entry level wage by gender comparedto local minimum wage
/202-2 Proportion of senior management hired from the localcommunity
/
GRI 203:
Indirect EconomicImpacts
203-1 Infrastructure investments and services supported
Further Promotion of
Targeted Poverty Alleviation
Supporting Community
Construction
203-2 Significant indirect economic impacts
Further Promotion of
Targeted Poverty Alleviation
Industrial Upgrading of ASF
Prevention
Technology Innovation
Leading the Upgrade
Delivering Sustainable Value
Muyuan Ju’ai, Supporting
Public Welfare
GRI 204:
Procurement Practices
204-1 Proportion of spending on local suppliers
Strengthening Supplier
Management
GRI 205:
Anti-corruption
205-1 Operations assessed for risks related to corruptionCorporate Governance205-2 Communication and training about anti-corruptionpolicies and procedures
Corporate Governance205-3 Confirmed incidents of corruption and actions takenCorporate Governance
GRI 206:
Anti-competitiveBehaviour
206-1 Legal actions for anti-competitive behaviour, anti-trust,and monopoly practices
/
GRI 301:
Materials
301-1 Materials used by weight or volume/301-2 Recycled input materials used/301-3 Reclaimed products and their packaging materialsNot applicable
GRI 302:
Energy
302-1 Energy consumption within the organizationBuilding Circular Economy302-2 Energy consumption outside of the organization/ 302-3 Energy intensityBuilding Circular Economy302-4 Reduction of energy consumptionBuilding Circular Economy302-5 Reductions in energy requirements of products andservices
Building Circular Economy
GRI Standards Index
Sustainability Report 2019
Muyuan Foods Co., Ltd.
GRI StandardsDisclosure TitleSection(s)
GRI 303:
Water
303-1 Water withdrawal by sourceBuilding Circular Economy303-2 Water sources significantly affected by withdrawal of waterNo such water resource303-3 Water recycled and reusedBuilding Circular Economy
GRI 304:
Biodiversity
304-1 Operational sites owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity value outsideprotected areas
Not applicable304-2 Significant impacts of activities, products, and services onbiodiversity
Building Circular Economy304-3 Habitats protected or restoredNot applicable304-4 IUCN Red List species and national conservation listSpecies with habitats in areas affected by operations
Not applicable
GRI 305:
Emissions
305-1 Direct (Scope 1) GHG emissions/305-2 Energy indirect (Scope 2) GHG emissions/305-3 Other indirect (Scope 3) GHG emissions/ 305-4 GHG emissions intensity/305-5 Reduction of GHG emissions/305-6 Emissions of ozone-depleting substances (ODS)/305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and othersignificant air emissions
/GRI 306:
Effluents and Waste
306-1 Water discharge by quality and destinationBuilding Circular Economy306-2 Waste by type and disposal methodBuilding Circular Economy306-3 Signific ant spillsNo such matter occurs306-4 Transport of hazardous waste/306-5 Water bodies affected by water discharges and/or runoffNo such water body
GRI 307:
Environmental
Compliance
307-1 Non-compliance with environmental laws and regulations
No incidents of non-
compliance
GRI 308:
SupplierEnvironmentalAssessment
308-1 New suppliers that were screened using environmentalcriteria
Delivering Sustainable Value308-2 Negative environmental impacts in the supply chain andactions taken
Delivering Sustainable Value
GRI 401: Employment
401-1 New employee hires and employee turnover/401-2 Benefits provided to full-time employees that are notprovided to temporary or part-time employees
Innovating Incentives
Enjoying an Abundant Life401-3 Parental leave/
GRI 402:
Labour/Management
Relations
402-1 Minimum notice periods regarding operational changes
Strictly Following Related
National and Local Laws and
Regulations
GRI StandardsDisclosure TitleSection(s)
GRI 403:
Occupational Health
and Safety
403-1 Workers representation in formal joint management–worker health and safety committees
/403-2 Types of injury and rates of injury, occupational diseases,lost days, and absenteeism, and number of work-related fatalities
/403-3 Workers with high incidence or high risk of diseases relatedto their occupation
Not applicable403-4 Health and safety topics covered in formal agreementswith trade unions
/
GRI 404:
Training and
Education
404-1 Average hours of training per year per employee/404-2 Programs for upgrading employee skills and transitionassistance programs
Supporting Employee
Development404-3 Percentage of employees receiving regular performanceand career development reviews
/
GRI 405:
Diversity and Equal
Opportunity
405-1 Diversity of governance bodies and employeesIntroducing Talented People405-2 Ratio of basic salary and remuneration of women to men/GRI 406:
Non-discrimination
406-1 Incidents of discrimination and corrective actions takenIntroducing Talented PeopleGRI 407:
Freedom ofAssociation andCollective Bargaining
407-1 Operations and suppliers in which the right to freedom ofassociation and collective bargaining may be at risk
/
GRI 408:
Child Labour
408-1 Operations and suppliers at significant risk for incidents ofchild labour
Introducing Talented People
GRI 409:
Forced or Compulsory
Labour
409-1 Operations and suppliers at significant risk for incidents offorced or compulsory labour
Introducing Talented People
GRI 410:
Security Practices
410-1 Security personnel trained in human rights policies orprocedures
Not applicable
GRI 411:
Rights of Indigenous
Peoples
411-1 Incidents of violations involving rights of indigenouspeoples
Not applicable
GRI 412:
Human Rights
Assessment
412-1 Operations that have been subject to human rightsreviews or impact assessments
Not applicable412-2 Employee training on human rights policies or proceduresNot applicable412-3 Significant investment agreements and contracts thatinc lude human rights clauses or that underwent human rightsscreening
Not applicable
GRI Standards Index
Sustainability Report 2019
Muyuan Foods Co., Ltd.
GRI StandardsDisclosure TitleSection(s)GRI 413:
Local Communities
413-1 Operations with local community engagement, impactassessments, and development programs
Further Promotion ofTargeted Poverty AlleviationBuilding Circular EconomySupporting CommunityConstruction413-2 Operations with significant actual and potential negativeImpacts on local communities
No such operation
GRI 414:
Supplier SocialAssessment
414-1 New suppliers that were screened using social criteriaDelivering Sustainable Value414-2 Negative social impacts in the supply chain and actionstaken
Delivering Sustainable Value
GRI 415:
Public Policy
415-1 Political contributionsNot applicableGRI 416:
Customer Health and
Safety
416-1 Assessment of the health and safety impacts of product
and service categories
Food Safety First, ProvidingHigh Quality Pork
416-2 Incidents of non-compliance concerning the health and
safety impacts of products and services
No incidents of non-complianceGRI 417:
Marketing and
Labelling
417-1 Requirements for product and service information and
labelling
Not applicable
417-2 Incidents of non-compliance concerning product and
service information and labelling
Not applicable
417-3 Incidents of non-compliance concerning marketing
communications
No incidents of non-compliance
GRI 418:
Customer Privacy
418-1 Substantiated complaints concerning breaches of
customer privacy and losses of customer data
Enhancing CustomerExperience
GRI 419:
Socioeconomic
Compliance
419-1 Non-compliance with laws and regulations in the social
and economic area
No incidents of non-compliance
CASS-CSR 4.0 Index
Level 1 TitleLevel 2 TitleCASS-CSR 4.0
About the ReportP1.1P1.2 P1.3P4.4
Chairman’s StatementP2.1P2.2P3.1P3.2
About Muyuan
Company ProfileP4.1P4.2P4.3G1.1G1.2
M1.6M1.7M2.5Corporate Governance
M1.1M1.2M1.3M1.4M1.5
M3.1S1.2
Responsibility Management
Social Responsibility StrategyG2.1G2.2G2.3Social Responsibility ManagementFramework
G3.1G3.2G3.3G4.2G4.3Materiality AssessmentG2.1Stakeholder CommunicationG6.1G6.2
Topic 1: Contributing to COVID-19Control
P3.1P3.2S4.8
Topic 2: Further Promotion ofTargeted Poverty Alleviation
P3.1P3.2S4.4S4.5S4.9
S4.12S4.13S4.14
Topic 3: Industrial Upgrading ofASF Prevention
P3.1P3.2M2.1M2.2M3.6
Topic 4: Technology Innovation,Leading the Upgrade
M2.4M2.5M2.6M2.7M3.6Food Safety First, Providing HighQuality Pork
Guaranteeing Safety and Quality
M2.1M2.2M2.3M2.4M2.7
M3.4M3.6Committing to Animal WelfareM2 .9
Circular Economy, RealisingSustainable Development
Innovative Environmental ManagementConcept
E1.1E1.3E1.5E3.1E3.6Building Circular Economy
E1.4E1.7E1.9 E2.1E2.2
E2.3E2.4E2.5E2.7E2.8E2.9
E2.11E2.12E2.14E2.15E2.16
E2.17E2.18E2.19E2.24E3.3
E3.4
Work Together, Sharing the Valueof the Industrial Chain
Strengthening Supplier Management
M3.1M3.3M3.7 M3.12
M2.15S4.4Delivering Sustainable Value
M3.8M3.10M3.11M3.14
M3.15E1.6Co-constructing Industrial ChainEcology
M3.4M3.6S1.5Enhancing Customer ExperienceM2.11M2.13M2.14M2.15
Muyuan Ju’ai, Supporting PublicWelfare
Assisting in Education by the Ju’ai ProjectS4.6S4.7S4.8S4.9S4.10S4.13Supporting Community ConstructionS4.5
GRI Standards Index
Sustainability Report 2019
Muyuan Foods Co., Ltd.
Level 1 TitleLevel 2 TitleCASS-CSR 4.0
People-Oriented, Contributing toTheir Happiness
Introducing Talented People
M3.4S1.5S1.6S2.1S2.2S2.5S2.7S2.8S4.2S4.3Guaranteeing Health and SafetyS2.11S2.12S3.1S3.2S3.3S3.4Innovating IncentivesS2.10Supporting Employee DevelopmentS2.14S2.16Enjoying Abundant LifeS2.4S2.10S2.17
OutlookA1
Muyuan Social ResponsibilityIndex
A2
GRI Standards IndexA5
CASS-CSR 4.0 IndexA5
Stakeholders Feedback FormA6
Stakeholders Feedback Form
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CASS-CSR 4.0 Index
Sustainability Report 2019
Muyuan Foods Co., Ltd.