New Hope Liuhe (000876) H2 2025 earnings summary

Executive summary

• Revenue reached ¥106.86 billion in 2025, up 3.68% year-over-year, but net loss attributable to shareholders was ¥1.78 billion, reversing from a profit in 2024 due to sharp Q4 losses and one-off items.

• Core business focus remained on feed and hog farming/slaughter, with feed sales hitting a record 29.74 million tons, up 15% year-over-year.

• Hog sales reached 17.55 million head, up 6.18% year-over-year, but average hog prices fell to a multi-year low, pressuring margins.

• Cash flow from operations remained strong at ¥9.38 billion, up 2.75% year-over-year.

Financial highlights

• Operating income: ¥106.86 billion (+3.68% YoY); net loss: ¥1.78 billion (vs. profit ¥474 million in 2024).

• Gross margin: 6.3% (down from 6.7% in 2024); basic/diluted EPS: -0.41 yuan (vs. 0.09 yuan in 2024).

• Cash flow from operations: ¥9.38 billion (+2.75% YoY); total assets: ¥114.23 billion (-3.12% YoY).

• Feed business revenue: ¥76.02 billion (+10.66% YoY); hog business revenue: ¥28.53 billion (-6.15% YoY).

• Overseas revenue: ¥22.35 billion (+11.54% YoY), accounting for 20.91% of total.

Outlook and guidance

• Company will continue to focus on scale growth, efficiency, and cost control in feed and hog businesses.

• Overseas feed sales targeted for further double-digit growth, with a long-term goal of 10 million tons by 2030.

• Hog business to emphasize cost reduction, genetic improvement, and digitalization to restore profitability.

• No cash dividend, bonus shares, or capital increase from reserves planned for 2025.