New Wufeng has lost money for 3 consecutive years, the scale of Zhenghong Technology's pig breeding has shrunk by more than 8 percent, and the asset-liability ratio of Longda Gourmet and Huatong shares has reached a new high.

The canon special giant weekly event will take you to understand the dynamics of breeding enterprises for a week.

The net profit attributable to the parent company of New Wufeng has been in loss for 3 consecutive years, and the state-owned enterprises have expanded in an orderly manner with capital advantages, with 3.2 million pigs slaughtered in 2023, a year-on-year increase of 75%; Zhenghong Technology's net profit attributable to the parent company has been in a loss for 3 consecutive years, and in 2023, the business structure will be optimized and adjusted, the poultry breeding business will be divested, the scale of pig breeding will be reduced, and the number of live pigs at the end of the year will be reduced by more than 80%; Longda Gourmet will slaughter 650,000 pigs in 2023, a year-on-year increase of 30%, and the net profit attributable to the parent company will turn from profit to loss due to the impact of the market and the epidemic......

New Wufeng: In 2023, 3.2 million pigs will be slaughtered, and state-owned enterprises will expand in an orderly manner with financial advantages

According to the 2023 annual report, in 2023, New Wufeng will achieve operating income of 5.632 billion yuan, an increase of 12.52% year-on-year, and net profit attributable to shareholders of listed companies will be -1.203 billion yuan. As the pig business has not yet turned losses into profits, New Wufeng has lost money for three consecutive years, with a total loss of 1.577 billion yuan in net profit attributable to the parent company from 2021 to 2023, and the asset-liability ratio rose to 74.99% at the end of 2023.

In 2023, the pig industry as a whole is facing a difficult moment, and New Wufeng will not retreat but advance, expand production capacity in an orderly manner, and lay a solid foundation for subsequent high-quality development through capital operation reserve expansion and working capital. During the reporting period, New Wufeng delivered 7 sow farms, added 51,600 sows, delivered 27 fat pig farms, and added 694,600 annual fat pig production capacity. In 2023, the company will slaughter 3.2 million pigs, a year-on-year increase of 75%, and the number of breeding sows will be 209,900 at the end of the year, a year-on-year increase of 35%.

New Wufeng believes that it has a financial advantage. The company is a state-controlled listed company, in addition to its own amount of monetary funds, can also make full use of the capital market platform through direct financing means to meet the company's development needs, following the completion of 1,029.99 million yuan of raised funds in October 2021, on June 20, 2023, the company raised 1.55 billion yuan through private placement, and can also obtain the funds required for development through indirect financing means, the company has obtained credit support from a number of banks, up to now, the company's credit line has more than 5 billion yuan.

Zhenghong Technology: The scale of pig breeding has been reduced by more than eighty percent, and the future will focus on optimizing the feed industry

Zhenghong Technology is also a state-owned enterprise that has lost money for three consecutive years due to pig raising. According to the 2023 annual report, in 2023, Zhenghong Technology achieved operating income of 1.241 billion yuan, a year-on-year increase of 6.9%, and net profit attributable to the parent company of -140 million yuan, a year-on-year decrease of 20.58%. The net profit attributable to the parent company in the first quarter of 2024 will be about -8.57 million yuan. From 2021 to 2023, the total loss of net profit attributable to the parent company will be 480 million yuan.

As the first listed company in China's feed industry, Zhenghong Technology's business strategy is to optimize the main feed business, stabilize the pig breeding industry, and expand the feed raw material trade industry, with a total sales of 211,100 live pigs in 2023, and a sales revenue of 310 million yuan, with a year-on-year increase of 27.02% in sales volume and a year-on-year decrease of 3.59% in sales revenue.

Zhenghong Technology said that the company's pig breeding business is in a state of load-bearing operation, and the company adjusted the business plan of the breeding business in a timely manner at the beginning of the year, reducing losses and reducing operating risks. It mainly includes the implementation of measures such as reducing the scale of breeding, reducing the number of pigs stored and slaughtered, removing inefficient pig farms, optimizing personnel allocation, standardizing the technical system, and improving production efficiency; eliminating low-performance sows, introducing new supplementary strains, and building a new pig breeding system.

The annual report also shows that during the reporting period, Zhenghong Technology optimized its business structure, first, to reduce the scale of pig breeding, and the pig inventory in 2023 will be about 28,000 heads, a year-on-year decrease of 80.46%. The second is to divest the poultry breeding business. In the future, we will stabilize the aquaculture industry, optimize the feed industry, and expand the trade industry.

Longda Food: 650,000 pigs will be slaughtered in 2023, and the impact of the market and the epidemic will cause performance losses

According to the 2023 annual report, in 2023, Longda Gourmet achieved operating income of 13.318 billion yuan, a year-on-year decrease of 17.36%, a net profit attributable to the parent company of -1.538 billion yuan, a year-on-year decrease of 2140.92%, and an asset-liability ratio of 73.77% at the end of the year, the highest level since listing, an increase of 17.69 percentage points from the end of 2022. The reason for the loss this year is mainly due to the continuous decline in the sales price of woolly pigs and the market price of pork in the traditional business segment, and the impact of the epidemic, resulting in a large loss in the company's traditional business;

During the reporting period, Longda Gourmet slaughtered a total of 6,435,400 live pigs, a year-on-year increase of 9.19%, and slaughtered 650,000 live pigs, a year-on-year increase of 29.6%. According to the research of Xinzhupai, the pig breeding capacity of Longda Gourmet is mainly distributed in Shandong Province, and due to the impact of the epidemic, its breeding sow herd will be less than 10,000 by the end of 2023 (more than 30,000 in the same period in 2022).

Longda Gourmet said that in 2024, for the breeding business, it will flexibly adjust the scale according to market conditions, do a good job in epidemic prevention and control, upgrade and improve the epidemic prevention and control system, reduce epidemic losses, and improve the survival rate of fattening.

Huatong shares: the asset-liability ratio has reached a new high, and it plans to raise no more than 1.6 billion yuan and 30% for debt repayment

The net profit attributable to the parent company has also turned from profit to loss, as well as Zhejiang slaughtering giant - Huatong shares. According to the 2023 annual report, in 2023, Huatong Co., Ltd. achieved operating income of 8.578 billion yuan, a year-on-year decrease of 9.24%, net profit attributable to the parent company of -605 million yuan, a year-on-year decrease of 789.34%, and an asset-liability ratio of 74.68% at the end of the year, the highest level since listing, a year-on-year increase of 12.39 percentage points.

Huatong Co., Ltd. said that in 2023, a total of 2.3027 million live pigs will be sold, a year-on-year increase of 91.13%. Due to the continued sluggish operation of pig prices, although the company gradually reduced the cost of breeding by strengthening fine management, improving breeding efficiency, reducing the rate of death, but during the reporting period, the company's pig slaughter increased significantly year-on-year, and the breeding business suffered significant losses.

In the fourth quarter of 2023, the complete cost of Huatong shares is 16.5 yuan/kg, and the target average cost in 2024 is 16 yuan/kg, hoping to drop to 15.5 yuan/kg at some point. Ways to reduce costs include lower feed prices and raw material prices, renewal of healthy ethnic groups, improved production management, reduced feed waste, and improved survival rates.

At present, Huatong Co., Ltd. has a breeding sow herd of nearly 150,000 heads, an increase of 20,000 sows from 130,000 sows at the end of 2022, and the PSY has increased to about 25, and the survival rate is basically stable at about 88%-89%.

In terms of capital operation, Huatong Co., Ltd. plans to issue no more than 184 million A-share shares to specific objects, and the total amount of funds raised will not exceed 1.6 billion yuan, of which 768 million yuan will be used for the Jixi Huatong integrated pig farm project, 288 million yuan will be used for the Liandu Huatong core pig farm project, 64 million yuan will be used for the annual output of 180,000 tons of high-grade livestock and poultry feed project, and 480 million yuan will be used to repay bank loans. Lihua Co., Ltd.: There are 60,000 sows that can breed, and the goal is to become a pig supplier with regional influence

Due to the loss of pig breeding, the net profit attributable to the parent company of Lihua Co., Ltd., a leading enterprise in chicken breeding, also turned from profit to loss. According to the 2023 annual report, in 2023, Lihua Co., Ltd. achieved operating income of about 15.354 billion yuan, a year-on-year increase of 6.28%, and net profit attributable to the parent company was -437 million yuan, a year-on-year decrease of 149.10%.

Yellow feather broiler business. During the reporting period, the yellow feather broiler market was sluggish as a whole, but Lihua's chicken business still made some profits. In 2023, the company will sell 457 million broilers (including hairy chickens, slaughtered products and cooked products), a year-on-year increase of 12.16%, and the chicken segment will achieve an operating income of 13.454 billion yuan, a year-on-year increase of 4.99%.

Hog business. During the reporting period, the pig market was oversupplied, pig prices continued to be sluggish, and the pig sector of Lihua Co., Ltd. lost money. The company will sell 855,100 pigs in 2023, a year-on-year increase of 51.51%. The company's pig production capacity layout is Jiangsu, Anhui and Shandong. As of the end of 2023, Lihua has built a pig production capacity of about 1.6 million heads, and about 60,000 sows in the herd, laying a good foundation for the subsequent growth of slaughter.

Lihua said that in the pig breeding business sector, the company will continue to explore the pig breeding business model with its own characteristics on the basis of the existing pig breeding technology and experience, optimize the breeding technology system, and develop into a pig supplier with regional influence in the short term, and the company plans to form an annual production capacity of more than 2 million commercial pigs by 2025.

· END·

【WeChat Editor】Meng Xuan

【Content Writing】Liu Weiheng

【Data Mapping】Liu Weiheng

【Content Review】Li Dan scan the QR code below to join the new pig pie pig data exchange group to get more data and information

New Pig Pie Featured Reading:

The slaughter target is 250 million heads!TOP35 pig enterprises have increased by more than 12% this year, and the market competition under the production capacity of 300 million is ready to go or is it a long breath?

"Company + farmer" reshapes the pattern of Guangxi's pig industry: Guangxi Agricultural Reclamation, New Hope, Wen's, Yangxiang, Liyuan, and Twins all have more than 100,000 sows

They may have the pricing power of piglets: 3 million for twins, 2 million for Haida, 1.5 million for Chia Tai, and 1 million for elephants......

420 million copies!2023 Blue Ear Seedlings TOP10 list: Boehringer is far ahead, Youben is second, Nannong Hi-Tech is third, and the share of inactivated seedlings is increasing year by year

The country only needs 35.88 million sows that can reproduce, and the new version of the pig production capacity control plan is worth paying attention to

TOP10 slaughtered 16.52 million heads!21 groups in Guangdong to carry out the "company + farmer" pig breeding model, fattening or into a scarce resource

200 million heads! 2023 TOP20 pig enterprises slaughter ranking: 63.82 million heads of Muyuan, 13.52 million twins, superstars, Tianbang, and Tang Renshen increased by more than 60%.