Muyuan Foods Group Emphasizes Cost Reduction to Strengthen Resilience Against Market Cycles

Deep News
06/09

Muyuan Foods Group Co.,Ltd. (ASX: 002714) has communicated its strategy for navigating market fluctuations.

The company addressed investor inquiries on an interactive platform, noting that fluctuations in feed raw material prices represent a common external risk for all pig farming operators. The firm stated it will closely monitor market changes, actively expand grain sources through multiple channels, and flexibly adjust feed formulas based on market trend analysis. This approach includes substituting between different raw material varieties to reduce feed costs, all while ensuring the optimal nutritional needs of the pig herd are met.

In its financial outlook, the company described its cash flow as secure and stable. It emphasized that in the current market environment, the focus is on continuously lowering costs to solidify its ability to endure industry cycles. Within its cost structure, non-cash costs such as depreciation and amortization account for over 10%.

Regarding financing, the company maintains stable and positive relationships with banks and other financial institutions, with ample credit reserves. It is also actively diversifying its financing channels, having issued several tranches of low-cost bonds this year.

Looking ahead, the company plans to enhance cash flow management by implementing prudent capital control measures. Ensuring cash flow security and stability will be the top priority. The firm will plan capital inflows and outflows by integrating market factors such as live pig prices and grain prices across its operating, investing, and financing activities to guarantee high-quality and stable development.

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