On July 8, 2026, Hunan New Wellful Co.,Ltd. (600975) disclosed that it held a meeting with institutional investors, including Gf Securities Co.,Ltd. and Ping An Asset Management, on July 3, 2026.
The company communicated on topics such as its latest operational status, financing and cost-control measures, and the impact of hog production capacity regulation policies, all while adhering to information disclosure regulations.
Operational and Cost Control Update
Addressing the industry downturn, the company is focusing on cost control and improving production capacity quality. It has implemented several measures to reduce costs and increase efficiency. These include optimizing its capacity structure by phasing out inefficient assets such as low-productivity sows and farms with weaker biosecurity controls. The company is also deepening strategic partnerships with entities like Copex and PIC to accelerate herd renewal and improve its PSY (pigs weaned per sow per year) level. Furthermore, it is reinforcing the cost advantages of its cooperative farming models and enhancing precision management to reduce variance in breeding costs. By leveraging coordinated technical and procurement strategies alongside centralized purchasing, the company aims to time its procurement effectively and lower overall purchasing costs. These efforts have contributed to a year-on-year decrease in breeding costs. From January to May 2026, the company sold a cumulative total of 2.3882 million hogs, including 1.384 million commercial hogs. Following a leadership transition completed in June 2026, the new management team will prioritize efficiency, cost management, technological innovation, and smart production.
Perspective on Capacity Regulation
The national policy for comprehensive hog capacity regulation aims to address overcapacity, facilitate a reasonable rebound in hog prices, and promote the stable, healthy development of the industry. To enhance efficiency, the company has prioritized culling low-yielding, aging, and inefficient breeding sows. By the end of 2025, its inventory of breeding sows stood at 249,300, a reduction of 8,400 from the end of June 2025, indicating a gradual optimization of herd structure and production performance. In 2026, the company plans to align with national policy guidance by maintaining its breeding sow inventory within a reasonable range. While ensuring stable operations, cash flow, and production capacity, it will actively participate in industry-wide capacity optimization to help restore supply-demand balance and foster a healthy market environment.
Perpetual Medium-Term Note Issuance
On July 2, 2026, the company's board of directors reviewed and passed a proposal to register and issue perpetual medium-term notes, which is still subject to shareholder approval. The total proposed registration and issuance amount does not exceed RMB 1.5 billion. This initiative is intended to broaden the company's financing channels, optimize its capital structure, and support its long-term, stable development.
Core Business and Financial Snapshot
Hunan New Wellful Co.,Ltd. is primarily engaged in hog breeding, meat sales, and feed processing. According to its Q1 2026 report, the company reported operating revenue of RMB 1.565 billion, a decrease of 16.02% year-on-year. Net profit attributable to shareholders was a loss of RMB 377 million, down 2021.17% year-on-year. After excluding non-recurring items, the net loss was RMB 381 million, a decrease of 2303.76% year-on-year. The debt-to-asset ratio was 81.27%, investment income was RMB 743,300, financial expenses were RMB 52.8582 million, and the gross margin was 2.68%. Over the past 90 days, one institution has issued a rating for the stock, which is a "Buy" recommendation. Data shows that over the last three months, net financing outflow was RMB 42.1647 million, reducing the financing balance, while net securities lending outflow was RMB 235,300, reducing the securities lending balance.