New Hope Liuhe (000876) H2 2025 earnings summary

Executive summary

• Operating revenue reached ¥106.86 billion in 2025, up 3.68% year-over-year, but net profit attributable to shareholders was a loss of ¥1.78 billion, reversing from a profit in 2024 due to sharp hog price declines, asset write-offs, and provisions for biological assets.

• Feed business achieved record sales and profit growth, while pig farming business improved cost efficiency but was impacted by industry-wide losses from low hog prices.

• The company maintained strong cash flow from operations and continued to optimize asset structure and financing.

Financial highlights

• Operating income: ¥106.86 billion (+3.68% YoY); feed business contributed ¥76.02 billion (+10.66% YoY), pig business ¥28.53 billion (-6.15% YoY).

• Net profit attributable to shareholders: -¥1.78 billion (2024: ¥474 million profit).

• Basic and diluted EPS: -¥0.41 (2024: ¥0.09).

• Gross margin: Feed 5.10% (+0.20pp YoY), Pig business 8.16% (-1.81pp YoY).

• Net cash flow from operating activities: ¥9.38 billion (+2.75% YoY).

• Total assets: ¥114.23 billion (-3.12% YoY); net assets attributable to shareholders: ¥22.20 billion (-13.47% YoY).

Outlook and guidance

• Focus remains on core feed and pig farming/slaughtering businesses, with strategic goals of steady feed growth, overseas expansion, and quality/efficiency improvement in pig business.

• Plans to achieve a million-ton increase in overseas feed sales in 2026, targeting 10 million tons by 2030.

• Pig business to further reduce costs, improve breeding, and enhance digital management; no cash dividend planned for 2025.