Dekon Food and Agriculture Group (2419) H2 2025 earnings summary

Executive summary

• Revenue increased 3.1% year-over-year to RMB23,159.0 million, driven by higher pig segment sales despite industry headwinds.

• Net profit declined 56.5% year-over-year to RMB1,421.6 million, mainly due to lower average selling prices and higher costs.

• Gross profit margin dropped from 23.0% to 13.7% due to significant declines in average selling prices for pigs and poultry.

• Pig segment remained the primary revenue and profit driver, accounting for 81.2% of total revenue.

• No final dividend was recommended for 2025 (2024: RMB0.9/share).

Financial highlights

• Operating income rose to RMB23,159.0 million (up from RMB22,464.0 million in 2024).

• Net profit attributable to shareholders was RMB1,433.2 million (2024: RMB3,159.9 million).

• EBITDA was RMB2,513.7 million, down from RMB4,552.5 million in 2024.

• Basic and diluted EPS were RMB3.69 (2024: RMB8.13).

• Cash and cash equivalents stood at RMB4,333.5 million at year-end.

Outlook and guidance

• 2026 strategy focuses on lean operations, aggressive cost reduction, and business model innovation.

• Pig segment aims for cost leadership and model upgrading, leveraging technology and asset-light expansion.

• Poultry segment targets structural optimization and profit breakthroughs through cost control and premium product focus.

• Ancillary products segment to enhance industry chain integration and loss reduction.