The 18th Yellow River Fortune Forum Among them, 181 patents were applied for and 185 patents were authorized in 2023 (including those applied for in previous years but authorized in 2023). 2023 ESG Highlight Performance Actively rewarding shareholders and investors, Muyuan shares the fruits of development with investors. Since its listing, it has distributed dividends totaling 16.828 billion yuan (including preferred shares and share repurchases). In 2023, dividends of 4.003 billion yuan were distributed. Comprehensive Implementation of the United Nations' Strictly fulfilling tax obligations in accordance with regulations, Muyuan comprehensively promotes the invoice management system and the application of digital invoices, timely and accurately declares, and pays taxes in full and on time. It has been rated 2030 Sustainable Development Goals（SDGs） as an A-level taxpayer for multiple consecutive years. In 2023, Muyuan and its subsidiaries' tax payments exceeded 800 million yuan. Strengthening the awareness of integrity and self-discipline, in 2023, the Company actively carried out various forms of education Muyuan actively embraces the ESG philosophy, upholding the core values of "Creating Value, Serving Society." With a focus on ESG activities such as themed training on anti-corruption and integrity, relevant warning education bases visits, and anti-corruption principles, Muyuan diligently pursues the United Nations' 2030 Sustainable Development Goals (SDGs), leading to simultaneous month publicity and education conferences. This year, we organized a total of 95 sessions of anti-corruption and integrity training, enhancements in economic, ecological, and social outcomes. and this covers all our employees. Ecological Benefits Economic BenefitsIn 2023, Muyuan supplied 63.82 million pigs to society and slaughtered 13.26 million pigs, achieving a total operating income of110.9 billion yuan. Among them, the slaughtering business generated operating income of 21.9 billion yuan. As of the end of 2023, Continuously increasing investment in environmental protection, a total of 1.056 billion yuan was invested in 2023 for Muyuan has driven 9,500 suppliers along the industrial chain, creating employment opportunities for 471,900 people. environmental process upgrading and rural management network construction to further enhance environmental governance effectiveness; Supply of pigs to society Slaughtered pigs Revenue in 2023 Revenue from slaughtering business Continuously improving environmental management capabilities, Muyuan organized more than 550 environmental protection training sessions internally in 2023, certifying 7,860 individuals through skill assessments and such training covers all 13.26 million heads billion yuan million heads 110.9billion yuan 21.9 63.82 environmental management personnel. At the same time, we actively promoted environmental management system certification, continuously improving the Company's environmental work processes and standards;Suppliers driven by the industrial Employment opportunities We actively promote low-carbon activities. In 2023, the carbon emission intensity was 0.964 kgCO e/kg of pork, a 3.4% decrease 2 chain created compared to the previous year. This includes the value of reducing greenhouse gas emissions from the source through initiatives such as low-soybean meal diets, pig house heating without fossil fuels, and photovoltaic power generation technology. A total of 4.34 9,500 471,900 million tons of CO e greenhouse gas emissions were reduced in 2023;2 In 2023, Muyuan increased its investment in research and development of low-soybean meal diets, allocating a total of 65.0645 Adhering to value breeding, we establish a unique two-way backcross breeding system to address the supply of pigs used for million yuan, contributing to a saving of 31.20 kg of soybeans per pig. This contributed to a total reduction of nitrogen emissions breeding. This enables us to provide high-quality breeding pigs to our customers, ensuring the production of premium pork to by 80,700 tons and a reduction of greenhouse gas emissions by 146,600 tons of CO e;2 better meet consumer demands. From 2020 to 2023, we have cumulatively supplied 1.451 million breeding pigs to the industry, with 181,000 breeding pigs supplied in 2023 alone. All farms use pig house heating without fossil fuels to reduce heating energy consumption, achieving energy savings and emission reductions. In 2023, the energy saved by using pig house heating without fossil fuels was equivalent to a reduction in standard coal use of 333,500 tons and a reduction in greenhouse gas emissions of 867,000 tons of CO e;2 Total Supply of breeding pigs from 2020 Supply of breeding pigs in 2023to 2023 Muyuan fully utilizes roof resources, constructs distributed photovoltaic power generation facilities, and promotes photovoltaic power generation. As of the end of 2023, our installed capacity of photovoltaics was 207.9 MW, with an additional installed 1.451 million heads 181,000 heads capacity of 117.4 MW. The cumulative electricity generation from January to December 2023 was 36.884 million kWh, supporting the transformation of energy structure in farms and slaughterhouses and reducing greenhouse gas emissions by 15,200 tons of CO e; 2 Adhering to the concept of innovative development, Muyuan has established an innovative research and development（R&D） system covering pigsty design, feed nutrition, disease prevention and control, environmental protection technology, and Muyuan actively explores comprehensive utilization methods of biogas and innovatively implements biogas purification projects. intelligent equipment. In 2023, the expenditure on R&D amounted to 1.658 billion yuan. Prioritizing employee occupational health, in 2023, Muyuan's total investment in safety production amounted to 198 million yuan, Biogas Utilization Volume Natural Gas Saved Reduction in Greenhouse Gas Emissions providing employees with a safe working environment, and safeguarding them from occupational hazards. 34.45 million m3 22.39 million m3 1.8378 million tons CO e 2 Supporting local employment to promote local economic growth, with a local employment rate of 76% in 2023. Persistently expanding local grain procurement (including corn, wheat, and rice) to stimulate community economic development. By 2023, Muyuan had purchased a total of 19.8768 million tons of local grains, a 4.87% increase from the previous year. Local grain All pig farms install sterilization and deodorization systems at the outlets to eliminate odor without disturbing the public, purchases accounted for 89% of total procurement in 2023. reducing greenhouse gas emissions by 125,200 tons CO e. Collaborating with the Department of Agriculture and Rural Affairs and 2 Department of Ecology and Environment of Henan Province, Muyuan openly shares odor purification technology to promote Committed to building a compliant, green, and responsible procurement system, Muyuan integrates ESG concepts into suppliers industry development. management systems. In 2023, Muyuan sourced 52.56% of soy products from suppliers with sustainable certifications, with plans to increase this to over 70% by 2025. Muyuan further promotes integrated livestock-crop system to achieve ecological sustainable development, helping farmers reduce costs and increase income. In 2023, 100% of manure was resourcefully utilized, benefiting 4.52 million mu(301,333hm2) of farmland, replacing 146.8 thousand tons of chemical fertilizers, sequestering 1.3482 million tons of CO e in farmland, while 2 driving farmers to increase income by 1.482 billion yuan. Soy products procurement from suppliers with sustainable certifications Plans to increase such procurement by 2025 Farmland Benefited Substituted Chemical Fertilizer Carbon Sequestration in Farmland Driving Farmers to Increase Income 52.56% Over 70% tons million tons CO e billion yuan 4.52 146,800 1.3482 2 1.482 million mu Muyuan continued to assist farmers in various forms such as plowing, planting, pest control, machinery coordination, weeding, Muyuan commits to "Sustainable Water Use" by implementing water-saving technologies such as reclaimed water reuse, and straw management to ensure effective crop management and increase farmers' yields. In 2023, Muyuan invested a total of enhancing water monitoring, and advancing fine water management to mitigate water risks, with freshwater usage at 2.25 m3 per 31.0522 million yuan in agricultural assistance services. head of pig. Muyuan continued the implementation of public welfare projects, including road construction, street lighting, square renovation, Continuously exploring models and technological pathways for soil improvement and governance, in 2023, Muyuan improved afforestation, and water projects. By the end of 2023, the Company had donated a total of 104.2622 million yuan in public welfare 229,500 mu(15,300hm2) of saline-alkali soil land, converting barren land into arable fields, achieving a yield of 850 catties per projects, benefiting 1,609 villages and creating beautiful, safe, and convenient living environments for community residents, mu, reducing soil salinity by 52.38%, and increasing organic matter by 6.67%. Additionally, desert management covered 88,200 significantly enhancing their quality of life. mu(5,880hm2), supporting ecological restoration and biodiversity conservation. Muyuan continued to carry out the Ju'ai Education Assistance Projects, in 2023, the "Ju'ai Education Assistance Project - Golden Autumn Program" provided rewards totaling 64.39 million yuan to 21,600 college students, while the "Ju'ai Education Assistance Project - Spring Seedling Program" distributed 77,933 school bags to elementary and middle school students, continuously Social Benefits spreading love and responsibility to society. Muyuan diligently fulfills its product responsibilities by producing safe and healthy pork products for the public. In 2023, Muyuan supplied high-quality pork totaling 5.34 million tons to society, meeting the pork demand of over 100 million people. Continuously optimizing food safety and quality management systems, Muyuan strengthens upstream and downstream certifications and inspections to ensure the safety of pork supply. Muyuan has obtained multiple certifications including FSSC22000, ChinaG.A.P., and ISO9001 in feed, breeding, and slaughtering, with a customer and government inspection pass rate of 100% in 2023. Actively exploring practices to reduce antibiotics, Muyuan systematically promotes antibiotic-free meat, feed, and breeding. In 2023, Muyuan used probiotics instead of antibiotics in 272 farms, reducing antibiotic usage.Respecting equal employment opportunities for employees, as of the end of 2023, Muyuan employed a total of 131,276 staff, with women accounting for 21.5%, and women holding 26% of senior positions (including department heads).The Company strictly follows the election procedures and qualifications for independent directors Board as required by relevant laws, regulations, normative documents, and company regulations. This Corporate Governance Independence ensures that independent directors possess the necessary independence to fulfill their duties impartially in various aspects, including participating in board decision-making, overseeing major matters, and enhancing business development, without being influenced by other conditions.Corporate Governance Structure As of now, there are three independent directors on the board, accounting for 43% of the total members, which meets the relevant regulations on the proportion of independent directors and Muyuan strictly complies with the requirements of relevant laws, regulations, and normative documents such as the Company ensures that the Board of Directors can make effective and independent judgments and scientific Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Rules Governing the Listing of decisions when deliberating and engaging in major matters. Shares on Shenzhen Stock Exchange, and the Business Guidelines of Shenzhen Stock Exchange for Self-discipline Regulation Muyuan has formulated the System of Independent Director and continuously revised it in of Listed Companies. We continuously improve our corporate governance structure, establish a modern corporate governance accordance with the latest regulations. It requires independent directors to fulfill their duties in framework and internal control system, to promote the high-quality and sustainable development of the Company. accordance with relevant regulations and system requirements. General Meeting of Shareholders Board of Supervisors Board o
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