Shares of MUYUAN (HKEX: 02714) fell more than 4%, hitting a new record low of HK$33.22. At the time of writing, the stock was down 3.98% to HK$33.32, with a turnover of HK$44.03 million.

The decline follows an announcement from the company that Qin Yinglin, due to reaching retirement age, has formally resigned from all key positions, including Chairman and President. He will now assume the roles of Lifetime Honorary Chairman and Director of the Pig Farming Research Institute. Succeeding him as Chairman is 49-year-old Cao Zhinian.

The new management team faces an immediate challenge: navigating Muyuan Foods Group Co.,Ltd. through the current severe downturn in the hog cycle. Analysis indicates the pig farming industry has now been in a state of continuous losses for nearly four months, with the scale of losses exceeding the low point of the previous cycle.

Based on current production capacity and piglet data, hog supply in the third and fourth quarters of 2026 may decrease sequentially. However, this is unlikely to reverse the fundamental situation of oversupply. Factoring in policy effects, it is expected that industry capacity will continue to be reduced throughout the second half of 2026.

Capacity reduction may reach its necessary level by the first quarter of 2027, at which point the industry is expected to enter a new upward cycle. The potential height of this next cycle will depend heavily on the extent of further hog production capacity reductions observed in 2026.