Affected by the price decline of the pig cycle Tiankang Bio Q3 net profit loss of 434 million

■ Text | Shangyi

Recently, the continuous decline in pig prices and the rise in feed prices have become the main reasons for the sharp losses in the pig industry. According to the information disclosed by the Ministry of Agriculture and Rural Affairs, the national stock of fertile sows has declined slowly, and the entire pig breeding industry has quietly begun to reduce production capacity, but the range is very limited.

With the continuous disclosure of the three quarterly reports of listed companies, the performance of listed pig companies has generally suffered losses.

Among them, the announcements of Wen's shares, Makihara shares, Tianbang shares, Zhengbang Technology and New Hope show that the five listed leading enterprises lost at least 20 billion yuan in the third quarter. Among them, Makihara shares lost more than 800 million yuan, which is the company's first loss in the past 9 quarters.

Source: Screenshot of the announcement

On October 24, Tiankang Bio released the third quarter report of 2021, showing that the company's performance in the first three quarters was not satisfactory, and the increase in revenue did not increase profits. Specifically, during the reporting period:

The company achieved operating income of 12.329 billion yuan, an increase of 43.01% year-on-year;

Achieved a net profit loss of 193 million yuan, down 113.05% year-on-year.

The performance report also shows:

Tiankang Bio achieved operating income of 4.412 billion yuan in the third quarter, an increase of 12.63% year-on-year;

The net profit loss was 434 million yuan, a year-on-year loss, down 167.6% year-on-year.

In addition, the company's operating costs in the third quarter of 2021 were 10.8 billion yuan, an increase of 82.2% year-on-year, higher than the growth rate of 43% of operating income, resulting in a 18.9% decline in gross profit margin.

For the reasons for the large loss of net profit? Tiankang Bio's third quarter report did not explain.

However, before October 14, Tiankang Bio released the first three quarters of 2021 performance forecast said:

"During the reporting period, affected by changes in the domestic pig market, the sales price of live pigs continued to decline from the beginning of the year, especially in the second and third quarters of the pig prices fell sharply compared with the same period of the previous year, making the company's pig breeding business profits a large decline year-on-year; at the same time, the company has made a corresponding inventory price decline provision for inventory in accordance with the requirements of accounting standards and prudence, and the company's breeding business has suffered a large loss during the reporting period." The company's feed business, biological vaccine business, agricultural products business and oil business, sales volume and profit increased over the same period last year. ”

In addition, Tiankang Bio also said:

Large fluctuations in hog market prices (falling or rising), african swine fever and other disease risks can have a significant impact on the company's operating performance.

In terms of the company's top ten circulating shareholders, compared with the top ten circulating shareholders in the semi-annual report, in the third quarter, the top ten circulating shareholders have new entries, increased holdings and reduced their holdings, and the statistics are as follows:

Tiankang Bio has a total of 1 new top ten circulating shareholders: Bank of Ningbo Co., Ltd. - Penghua Industrial Upgrading Hybrid Securities Investment Fund holds 5.3827 million shares, accounting for 0.5% of the outstanding shares;

A total of 2 shareholders increased their holdings: Hong Kong Securities Clearing Company Limited increased its holdings by 515,969 shares, the shareholder held 0.5% of the outstanding shares, and He Sheng increased its holdings by 349,000 shares, and the shareholder held 0.45% of the outstanding shares;

A total of 2 shareholders reduced their holdings: Xinjiang Tianda Biological Products Co., Ltd. reduced its holdings by 7.98 million shares, the shareholder held 1.29% of the outstanding shares, Zhu Wentao reduced its holdings by 1.5904 million shares, and the shareholder held 0.98% of the outstanding shares;

According to the data, Tiankang Biology is an agricultural and animal husbandry listed company integrating veterinary biological products and animal disease prevention and control, modern pig scientific breeding and breeding, feed research and development and production, and pig slaughtering, processing and placement.

As for its future? We will continue to pay attention!

Disclaimer: This article is only for knowledge sharing, only for the purpose of transmitting more information, does not constitute any investment advice, anyone makes investment decisions accordingly, at their own risk.