Innovation inspires vitality, responsibility interprets mission — A conversation with Liu Yonghao, Chairman of New Hope Group

Recently, China Industrial News conducted an in-depth interview with Liu Yonghao, Chairman of New Hope Group (hereinafter referred to as "New Hope"), exploring how he led this private enterprise, which began with just 1,000 yuan in 1982 raising quail, through 43 years of innovative development to grow into a comprehensive industrial group specializing in agriculture, animal husbandry, food, and cold chain industries.

Cultivating New Quality Productivity: Empowering Traditional Industries with Technology

Traditional industries must embrace new quality productivity, improve the efficiency of agricultural technological innovation, and "equip" themselves with new quality productivity.

China Industrial News: This year's Central Document No. 1 first proposed "new quality productivity in agriculture." As a leading entrepreneur in the agricultural sector, how do you understand this concept? What are New Hope Group's practices in this regard?

Liu Yonghao: New quality productivity in agriculture is key to New Hope's future development. In my view, traditional industries must embrace new quality productivity, improve the efficiency of agricultural technological innovation, and "equip" themselves with new quality productivity.

Traditional industries are fundamental, and people's demand for meat, eggs, and milk will persist for 10,000 years. The agricultural industry must develop new quality productivity; this is the future landscape. We must keep pace with the times, stay grounded, fulfill our responsibilities, and actively integrate into the new high-quality productivity landscape. This is the only way forward.

Over the years, New Hope has been empowering traditional agriculture and animal husbandry with new high-quality productivity, investing over 40 billion yuan in transformation and development. We have integrated into national strategies, actively investing in breeding, and making breakthroughs in "pig chips" and "duck chips." The "Zhongxin Duck," a new meat duck breed we bred and promoted with the Chinese Academy of Agricultural Sciences, has broken the foreign monopoly. In pig breeding, we have not only partially achieved international standards but also developed higher-quality domestic pig breeds to meet consumer demand for better taste and higher quality. The ultimate goal of these breakthroughs is to cultivate seed stocks that meet international standards and reduce reliance on imported seed stocks.

Furthermore, the key to developing new high-quality productivity in agriculture lies in improving efficiency through technological means, such as using data to optimize production processes. In terms of new technology applications, needle-free injection technology has replaced traditional needle-based methods, reducing animal stress and significantly improving medication accuracy. The widespread adoption of innovative equipment has freed grassroots employees from repetitive tasks, allowing them to focus on higher-value work.

New Hope's experience lies in down-to-earth efforts to reduce costs and increase efficiency through technology. We have adopted a "hard, control, and substitution" strategy: "hard" technological research and development, "control" key breakthroughs, and "substitution" to conserve grain.

Going forward, the Group will focus on core issues such as food security and the revitalization of the seed industry, increasing investment in new technologies such as biotechnology, artificial intelligence, and big data to promote the transformation of traditional agriculture and animal husbandry towards intelligent, digital, and green development. Through technological innovation, we will improve production efficiency, reduce costs, enhance product quality, strengthen market competitiveness, lead industry development, and provide solid support for building a strong agricultural nation.

Traditional industries must transform, embrace new-quality productivity, and innovate and transform; otherwise, they will fall behind. I am an "old farmer," but I also want to be a good "new farmer."

China Industrial News: The Central Economic Work Conference at the end of 2024 prioritized "vigorously boosting consumption" when laying out key tasks for 2025. The 2025 "Government Work Report" proposes "vigorously boosting consumption, improving investment efficiency, and comprehensively expanding domestic demand," and also makes key arrangements for implementing special actions to boost consumption. What are your thoughts on this?

Liu Yonghao: This policy direction aligns closely with the strategic transformation of private enterprises like New Hope Group. As key players in the consumer market, private enterprises are actively responding to the strategy of expanding domestic demand through product innovation, expanding distribution channels, and digital transformation.

New Hope Group will leverage its "fresh strategy" to actively tap into new consumer demand. Our "24-hour fresh milk," which is available from source to sale in under 24 hours, is leading new consumer trends. Our crispy pork, produced using new technology, has brought regional specialty snacks nationwide. Our "Chuan Wa Zi" roasted pepper sauce, made with fresh chilies and innovative preservation techniques, has become a favorite among young people and a rising star in the industry.

To boost consumption and expand domestic demand, I suggest that, in addition to providing subsidies in the home appliance and automobile sectors, the government should also issue consumer vouchers tailored to specific regions and needs, creating a more comprehensive and multifaceted support system. The scope of consumption subsidies can also be further expanded, particularly to small and micro enterprises and agricultural enterprises producing agricultural products and household necessities with rigid demand and recurring consumption. This will both boost consumption and improve people's lives, achieving multiple goals at once.

Going forward, New Hope will continue to leverage new technologies, including digital technology, to produce more products that adapt to market changes. By leveraging data accumulation and AI models, we will optimize cold chain logistics, reduce logistics costs, improve delivery efficiency, and ensure product freshness.

Embracing AI Technology: Actively Learning to Embrace the New Landscape

New Hope Group encourages its design, marketing, and management teams to collaborate with AI big models. Understanding, learning, and applying them will undoubtedly benefit the company.

China Industrial News: What is your personal view of AI technology? As an entrepreneur in a traditional industry, how do you maintain a keen eye for new technologies?

Liu Yonghao: We must constantly learn, learn from young people, learn big data, and learn big models. Only by daring to fight can we win. We must work hard, not be afraid of difficulties, and never give up.

Although I am 74 years old, I require myself and my team to actively embrace new technologies. New Hope's fintech company fully implemented DeepSeek's software within two weeks of its launch. I also installed related AI applications on my computer and phone, even testing the software's effectiveness at different stages to select the best one. Last year, I led a team to visit technology companies like NVIDIA and Google, and exchanged ideas with Harvard scientists. This gave me a deep understanding of the unprecedented socioeconomic transformation that AI will bring.

Over the past year, my country's economy has overcome difficulties brought about by a complex internal and external environment, maintaining overall stability and making steady progress. The explosive development of emerging technologies such as artificial intelligence has further driven comprehensive transformation in traditional industries, but they still face numerous challenges. Traditional industries must innovate and transform or they will fall behind. How to accelerate the integration of high-tech with traditional industries and promote high-quality development of traditional enterprises is also a major concern of mine.

Traditional enterprises must proactively learn new technologies. New Hope has proposed the "Five New" concept: new mechanisms, new youth, new technology, new track, and new responsibilities. With an average management team age in their 30s, New Hope has cultivated 25 national-level specialized and innovative enterprises. This is the secret to its continued vitality.

Currently, New Hope Group encourages its design, marketing, and management teams to collaborate with large AI models. Understanding, learning, and applying it will undoubtedly benefit businesses.

China Industrial News: Artificial intelligence is reshaping various industries. What are its specific applications in agriculture? How is New Hope developing its "AI + Agriculture" strategy?

Liu Yonghao: With the advent of the AI era, businesses must keep pace and become active participants, not bystanders. New Hope has been exploring "AI + Modern Agriculture."

For example, in feed, AI can help companies dynamically adjust formulas to achieve precise nutrition. Optimizing feed formulas can save 1% annually, equivalent to saving 300,000 tons of feed. In procurement, AI can help companies better predict raw material prices and inform purchasing decisions. In pig farming, AI can monitor the breeding environment and automatically adjust ventilation, cooling, and other equipment. In breeding, AI can help screen for superior genetic combinations and accelerate the breeding process. At the same time, digital twin chassis and operating robots enable unmanned or reduced-staff pig farm management. In cold chain logistics, leveraging AI and big data, companies can bring dozens of factors, including time, space, temperature, and gas, online. Through AI-driven coordination, efficiency is greatly improved. Cold chain logistics leverages AI and IoT technologies to create a "Didi-style" delivery platform, serving 1.08 million stores.

During the breeding process, we aggregate various breeding data to generate big data, which is then integrated with AI to significantly improve breeding efficiency. New Hope continues to increase its investment in agricultural technology and collaborate closely with research institutions, driving advancements in agricultural breeding and other technologies, contributing to the security of my country's agricultural industry.

Furthermore, New Hope is leveraging years of accumulated industry data and combining it with AI to develop a pig cycle prediction model. By analyzing feed sales, breeding scale, and price trends, this large-scale model can provide risk warnings to businesses and farmers, helping small and micro businesses adjust their strategies in advance. This data-driven management model is changing the passive, weather-dependent nature of traditional agriculture.

I believe that new technologies aren't exclusive to a few emerging companies. Traditional companies "armed" with new productivity are emerging enterprises.

Promoting Entrepreneurial Spirit: The Courage to Innovate Despite Hardships

The core elements of entrepreneurial spirit are, first, the courage to innovate despite challenges; second, a sense of social responsibility.

China Industrial News: What do you think is the biggest challenge facing private enterprises in their development? As a representative of private enterprises, what are your thoughts on the government's current emphasis on and support for the development of the private economy?

Liu Yonghao: Confidence is more important than gold. Recently, faced with the complex external environment and the new problems and challenges brought about by economic transformation and shifts, some entrepreneurs have felt pressured and unable to adapt. Others have lacked confidence, even giving up and feeling anxious. This is the biggest challenge facing private enterprises in their development.

As private enterprises, we deeply feel the unwavering support of the government for the private economy. In recent years, the government has introduced a series of policies and measures to support the development of the private economy, from tax and fee reductions to optimizing the business environment, from strengthening financial services to promoting technological innovation. These policies have provided strong support for the development of private enterprises. In particular, at the recent symposium on private enterprises, the Party Central Committee expressed high recognition and expectations for private enterprises, charting the course for their development.

The word "private" appeared seven times in this year's Government Work Report, further sending a strong signal of the Party Central Committee's support for the development of the private economy. After this year's Two Sessions, I am even more convinced that the Party Central Committee's support for the private economy will only intensify. I believe that with the implementation of various policies, they will have an even more positive impact on the development of the private economy and further boost the confidence of private enterprises. With confidence, private enterprises will always be motivated to overcome difficulties and rise to the challenge.

As the saying goes, "Even good wine needs a bush." Good policies must be well publicized and well interpreted so that all sectors of society can fully understand and accept them.

The private sector occupies a vital position in my country's economy, contributing over 50% of tax revenue and over 60% of GDP. Under the new development landscape, private enterprises must make a difference and actively embrace new productivity. At the same time, I also suggest that the country continue to adhere to a state-led approach in major scientific research projects while also strongly supporting the innovative activities of private enterprises. Furthermore, I hope the state can further safeguard the development of the private economy through legal means.

China Industrial News: As one of the first generation of entrepreneurs after the reform and opening up, how do you define "entrepreneurship"? What are the core elements of entrepreneurship, in your opinion?

Liu Yonghao: Entrepreneurship has been expressed differently in different eras. Amidst increasing downward pressure on China's economy and unprecedented changes unseen in a century, for private enterprises, entrepreneurship means maintaining a firm investment philosophy, maintaining confidence, and ensuring employment. During periods of adjustment and when the country faces difficulties, entrepreneurship manifests itself in leading the way and daring to rise to the challenge.

I believe that entrepreneurs must possess leadership skills, be down-to-earth, and focus on their work. At the same time, entrepreneurs must also keep their eyes on the road ahead and their heads held high, observing shifts in international trends, major policies, and industry changes. When private entrepreneurs can combine "keep your head down, work hard" with "look up and see the road ahead," and occasionally "look up at the sky," their businesses will thrive and prosper.

The core elements of entrepreneurial spirit are, first, the courage to face challenges and innovate; second, a sense of social responsibility.

Since its development in 1982, New Hope has weathered numerous challenges, including policy fluctuations, economic cycles, and the pig industry cycle. Especially during the trough of the pig industry cycle, the industry suffered severe losses. However, through strong management and technological advancement, the group successfully achieved profitability last year, remaining committed to its core business of agriculture and animal husbandry, unwavering for 43 years.

Currently, New Hope has become the world's leading feed production company by finding opportunities in every crisis. In my opinion, facing the current complex and volatile international situation and the domestic transformation and upgrading, businesses need more than just stability; they also need the courage to forge ahead.

China Industry News: The 2025 Government Work Report calls for focusing on the "three rural issues" and deepening the comprehensive revitalization of rural areas. What role do you believe businesses can play in promoting rural economic development and increasing farmers' incomes? What has New Hope Group done for national poverty alleviation and rural revitalization?

Liu Yonghao: Entrepreneurs should not only create economic value, but also social value. In line with national strategies, New Hope Group is closely aligned with the broader trend, focusing on its core agricultural business, radiating and driving upstream and downstream sectors, and making positive contributions to national poverty alleviation and rural revitalization.

New Hope Group has proposed five key initiatives over five years to support rural revitalization, known as the "Five-Year Plan." These initiatives include: investing 50 billion yuan over five years to revitalize rural industries; creating 50,000 new jobs to attract university graduates, farmers, and other agricultural professionals; providing public welfare training for 50,000 new green-collar farmers to boost rural talent; serving 50,000 agricultural entities to support the growth of farmers and small and medium-sized enterprises; and establishing five rural revitalization demonstration bases to create a model for digital rural revitalization.

During the implementation of the "Five-Year Plan," rational planning will be implemented to ensure a clear division of labor between enterprises and farmers, educate farmers on new technologies, and share profits with farmers to help them increase their incomes. For example, in pig farming, we adopt a "company + farmer" partnership model, with the company handling the relatively difficult tasks and the farmers taking on the simpler ones. The company will teach farmers efficient and scientific production methods, fostering a mutually supportive relationship that will drive rural economic development and increase farmers' incomes.

I believe that agricultural modernization must not be pursued at the expense of the interests of farmers. Instead, it aims to empower agriculture with modern technology and pursue new agricultural productivity. Through digital transformation, breakthroughs in biotechnology, and innovative mechanisms to support farmers, we will work together to build an industrial ecosystem that allows farmers to participate, benefit, and thrive.

New Hope will remain true to its original aspirations and uphold the principles of "serving the country with a heart, striving for development, abiding by the law, and operating effectively, prioritizing prosperity for all" to build a down-to-earth business. While pursuing business development, we will also focus on social welfare, actively participate in public welfare projects, and contribute to addressing employment, poverty alleviation, and environmental protection.

At the same time, we will strengthen Party building in enterprises, give full play to the leading role of Party organizations within enterprises, and ensure the correct direction of enterprise development. We will guide employees to establish correct values and cultivate corporate citizens with a sense of responsibility and mission, thereby building a strong synergy for economic and social development. We will actively participate in activities organized by industry associations and chambers of commerce, strengthen industry self-discipline, promote the healthy development of the industry, and create a favorable development environment for private enterprises.