Muyuan Foods (002714) investor relations material

Executive summary

• Revenue for H1 2026 was ¥59.41 billion, down 22.3% year-over-year due to a sharp decline in hog prices, resulting in a net loss of ¥6.08 billion attributable to shareholders, compared to a net profit of ¥10.79 billion in H1 2025.

• Hog sales reached 38.62 million heads, with slaughter volume up 50.98% year-over-year, and pork product sales at 1.92 million tons.

• Slaughter and meat business revenue grew 14.04% year-over-year, offsetting some losses in the core farming segment, and achieved profitability.

• Gross profit margin dropped from 20.5% to -1.6%, mainly due to a 28% decrease in average hog selling price, despite cost reductions.

• The company advanced AI-driven pig farming models, expanded overseas, and completed a dual listing in Hong Kong.

Financial highlights

• Operating income: ¥59.41 billion, down 22.3% year-over-year.

• Net loss attributable to shareholders: ¥6.08 billion, basic and diluted EPS at -1.10 per share.

• Operating cash flow: -¥2.22 billion, down from ¥17.35 billion last year.

• Total assets: ¥175.06 billion, up 1.93% from year-end 2025.

• EBITDA margin fell to 5.9% from 26.0% in H1 2025.

Outlook and guidance

• The company targets an annual average pig farming cost of ¥11.5/kg, leveraging technology, health management, genetics, and intelligent applications.

• Confident in further slaughter volume growth and profitability improvements, with ongoing channel and product optimization.

• Plans to intensify overseas expansion, especially in Southeast Asia, with projects in Vietnam and exploration in the Philippines.