Muyuan Foods Group Co.,Ltd. (02714) shares fell more than 3% in Hong Kong trading, dropping 3.3% to HK$32.36 as of press time, with a turnover of HK$32.57 million.

Market data from Zhuhaoduo shows that on July 24, the national average price of foreign ternary live pigs was 10.75 yuan per kilogram, down 0.12 yuan per kilogram from the previous day. This marks the 12th consecutive day of price declines. The drop has been especially pronounced in northern production areas such as Northeast and North China.

Regarding production capacity and inventory pressure, Caitong Securities assesses that the pig farming industry remains in a phase of oversupply. Hog prices are likely to fluctuate near the bottom in the second half of the year, making a trend reversal unlikely. Amid persistent low industry sentiment, the capacity of breeding sows is expected to accelerate its reduction.

The company previously released a semi-annual performance forecast, expecting a net loss of between 5.7 billion and 6.7 billion yuan for the first half, turning a profit into a loss compared to the same period last year. This was mainly attributed to falling pig prices. From January to June, the company sold a total of 38.615 million commercial pigs, an increase of 0.58% year-on-year. However, due to pig prices being significantly lower than the same period in 2025, the average selling price of commercial pigs in the first half was about 10.4 yuan per kilogram, a year-on-year decrease of approximately 28%.