Muyuan Foods (002714) Q2 2026 earnings summary

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.

• 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.

• The company advanced AI-driven pig farming models and expanded overseas, including a successful 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, compared to a profit of ¥10.53 billion last year.

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

• Basic and diluted EPS: -¥1.10, down from ¥1.96 and ¥1.91, respectively.

• Gross margin for farming: -4.51%; slaughter/meat: 4.24%.

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

Outlook and guidance

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

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

• Plans to intensify overseas expansion, especially in Southeast Asia.