Muyuan Foods Co., Ltd. (02714) saw its stock price plummet 5.07% during intraday trading on Monday, following the release of its 2025 annual report which revealed a significant decline in profitability despite revenue growth.

The company reported that net profit attributable to shareholders fell 13.39% year-on-year to 15.487 billion yuan, primarily due to declining hog prices. According to the Ministry of Agriculture and Rural Affairs, the average live hog price for 2025 dropped to 14.44 yuan per kilogram, marking the lowest annual price since 2019. The challenging market conditions have continued into 2026, with hog prices falling to as low as 10.1 yuan per kilogram by late March, hitting the lowest level since June 2018.

Despite achieving profitability in its slaughtering and meat business for the first time and reducing its full-cycle hog farming cost to 12 yuan per kilogram, the company faces ongoing operational pressure. Sales data for the first two months of 2026 shows continued price declines, with February's average selling price dropping 18.72% year-on-year to 11.59 yuan per kilogram. Company executives described 2025 as "the most challenging period in recent industry cycles" for hog farming.