Muyuan Foods Co., Ltd. (02714) saw its shares plummet 5.05% during intraday trading on Wednesday, continuing a downward trend for the pork producer.

The sharp decline comes as the hog farming industry faces persistent challenges, with national average hog prices remaining significantly below production costs. Data shows commercial hog prices are down 34.2% year-on-year, placing the entire industry in a loss-making zone with profits from selling commercial hogs showing losses for 12 consecutive weeks.

Adding to investor concerns, Muyuan Foods reported disappointing first-quarter results with revenue declining 17.10% year-on-year and a net loss of RMB 1.215 billion, shifting from profit to loss compared to the same period last year. The company's April sales revenue further declined 32.49% year-on-year, reflecting the ongoing industry adjustment cycle that has led to across-the-board losses for listed hog enterprises.