In 2023, Muyuan Co., Ltd. will invest 1.658 billion yuan in R&D, reduce the cost to 15 yuan/kg, and empower new quality productivity with science and technology
On the evening of April 26, Muyuan Co., Ltd. released its 2023 annual report, which still maintains safe and steady development in the weak environment of the industry. In 2023, Muyuan Co., Ltd. will achieve operating income of 110.861 billion yuan, net profit attributable to shareholders of listed companies will be a loss of 4.263 billion yuan, net cash flow from operating activities will be 9.893 billion yuan, and monetary funds will be 19.429 billion yuan at the end of 2023, and 63.816 million live pigs will be sold throughout the year, and the average complete cost of pig breeding for the whole year will be about 15 yuan/kg, a decrease of 0.7 yuan/kg compared with 2022, further consolidating the cost advantage. According to the annual report, Muyuan shares are expected to slaughter 66 million to 72 million pigs in 2024.
From the perspective of the industry, in the context of the overall loss of the pig breeding industry in 2023, Muyuan shares still rely on its high cost control strength to maintain a low average loss, and the operating results are quite rare. The steady and upward performance is inseparable from the continuous investment in R&D and the increasing level of scientific and technological innovation.
Continue to invest in scientific and technological innovation, R&D expenses in 2023 will be 1.658 billion yuanIn the past year, the number of pigs slaughtered in the mainland was large, and the increase in pork production was obvious, resulting in low pig prices, and pig breeding enterprises were facing greater operating pressure. As a leading enterprise in the pig industry, Muyuan has been continuously investing in nutrition management, disease control, informatization and intelligence for a long time, realizing the quality and efficiency improvement of pig breeding through innovation, and building its core competitiveness on the cost side. According to the annual report, the average complete cost of commercial pigs for the whole year is about 15 yuan/kg, a decrease of 0.7 yuan/kg compared with 2022.
Behind the cost advantage, it is inseparable from the continuous investment in R&D and the continuous breakthrough of scientific and technological innovation. In the past year, Muyuan Co., Ltd. has further increased innovation and increased R&D investment. According to the announcement data, the R&D expenses of Muyuan Co., Ltd. in 2023 will be 1.658 billion yuan, a year-on-year increase of 45.11%, and the number of R&D personnel will increase from 6,134 in 2022 to 6,681, a year-on-year increase of 8.92%.
In Muyuan's view, innovation requires the focus of corporate leadership energy, corporate financial resources, and manpower distribution, which is also the long-term doctrine that Muyuan adheres to - only by taking root downwards can we strive to break through the sky.
To this end, in 2023, Muyuan Co., Ltd. will continue to make efforts in pig health management, intelligence, informatization and nutrition research and development, unswervingly increase technological innovation, and continue to consolidate the core competitive advantages of the enterprise.
Build the "Swine Disease Skynet Project" to open up the technical path for the prevention and control of major diseases such as blue ear disease and ileitis, promote the purification of epidemic diseases, and further ensure the safety and quality of pork while reducing the cost of breeding. In the future, with the continuous promotion of disease purification, the health level of the herd is expected to continue to improve, and promote the reduction of the overall breeding cost of the enterprise.
In terms of intelligence, Muyuan Co., Ltd. has independently developed intelligent equipment such as air filtration pig house, intelligent feeding, intelligent environmental control, intelligent inspection, and intelligent sound monitoring, so as to improve the level of pig breeding in an all-round way from housing, eating, environment, and health management.
Taking intelligent environmental control as an example, Muyuan deeply focuses on the growth needs of pigs, realizes the intelligent adjustment of the temperature, humidity and other environments of the pig house, so as to remove environmental deviations, cut off the spread of pathogens, and give full play to the growth potential of pigs; In addition, Muyuan has also established a pig big data platform, which collects all kinds of data in the process of pig breeding through the information system, realizes the effective management of every pig house, every employee, every equipment and every pig with strong data support, and promotes the data of all business activities and the refinement of personnel management, so as to improve breeding efficiency and optimize business decisions.
In 2023, the amount of soybean meal in the feed of Muyuan Co., Ltd. will drop to 5.7%, a decrease of 1.6% compared with 2022, and Muyuan will have a cost advantage of 15 yuan compared with the industry average of 13%. At present, Muyuan and Westlake University are promoting synthetic biology projects to further reduce the amount of soybean meal, in addition, biological fermentation amino acids will also become a regulator of soybean meal prices, reducing the impact of soybean meal price increases on breeding costs, which is also of great significance to the industry.
It is reported that based on more than 30 years of persistence and in-depth exploration in technological innovation, Muyuan Co., Ltd. has established 20 major drill tip technologies such as "seeding, material, health, raising, and slaughtering", and has applied for 2,142 national patents.
The innovation and breakthrough on the technical side has formed a new quality productivity of Muyuan Co., Ltd., providing a steady stream of power for the high-quality development of its pig industry. In 2023, thanks to the company's continuous strengthening of pig health management and production management, Muyuan's various production indicators have been improved, with an average survival rate of 85% throughout the year, a daily gain of about 800g, and an average complete cost of commercial pigs throughout the year to 15 yuan/kg, a further decrease of 0.7 yuan/kg compared with 2023.
Taking its subsidiary Fengtai Muyuan Company as an example, in the context of a comprehensive loss in the industry in 2023, Fengtai Muyuan slaughtered 977,000 pigs throughout the year, with an average pig breeding cost of about 13.6 yuan/kg, and achieved a net profit of 176 million yuan.
Muyuan Co., Ltd. said that as the company continues to open up various technical paths, it will further reduce costs in 2024. On the one hand, we should strengthen standardized management, realize the full implementation of various technologies in production, promote the replication and promotion of excellent results, reduce the dispersion of breeding costs, and achieve the reduction of overall costs and the improvement of operating efficiency;
From the perspective of the industry, compared with traditional productivity, new quality productivity pays more attention to overcoming new technologies, developing new paths, and creating new value. In the current context of globalization and digitalization, new quality productivity has become a key factor in enterprise competition and industry development. The continuous breakthrough of Muyuan Co., Ltd. in technology will not only inject new momentum into the development of its own pig industry, but also drive the high-quality and sustainable development of the entire industry.
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【WeChat Editor】Meng Xuan
【Content source】Muyuan shares
【Data Mapping】Hu Yong
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