MUYUAN Foods reported interim revenue of RMB 59.41 billion for H1 2026, down 22.30% year-on-year as China’s hog prices fell sharply. A net loss attributable to shareholders of RMB 6.08 billion contrasts with the RMB 10.53 billion profit recorded in H1 2025.

Segment trends • Hog business revenue dropped 30.50% to RMB 52.43 billion, with a gross margin of ‑4.5%. • Slaughtering & meat products climbed 14.04% to RMB 22.06 billion and turned profitable; gross margin improved to 4.2%. • Trading and other revenue surged 264.7% to RMB 5.96 billion, mainly from higher feed-ingredient sales.

Operational metrics • Finished hog sales rose 1.7% to 38.62 million head, while average selling price fell about 28% to roughly RMB 10.4/kg. • Company-wide farming cost averaged RMB 11.7/kg in June; management targets RMB 11.5/kg for full-year 2026. • Slaughter volume jumped 50.98% to 17.23 million head, yielding 1.92 million tonnes of pork.

Cash flow and balance sheet • Operating cash outflow reached RMB 2.22 billion versus an inflow of RMB 17.35 billion a year earlier. • EBITDA stood at RMB 3.48 billion, an EBITDA margin of 5.9%. • Cash and equivalents rose slightly to RMB 13.63 billion; short-term loans expanded to RMB 47.25 billion, while long-term loans fell to RMB 4.64 billion. • Gearing remained flat at 54.2%; current ratio held at 0.8.

Capital moves • The February Hong Kong IPO raised HKD 11.87 billion; 31% of proceeds (RMB 3.22 billion) had been deployed by 30 June. • Directors and senior management completed an on-market A-share purchase totaling RMB 500 million; Board approved an H-share buyback of HKD 300–500 million. • H1 capex reached RMB 6.52 billion, mainly for farming and slaughter capacity.

Strategic highlights • AI-driven “hog farming large model” is being co-developed with Alibaba Cloud to standardize on-farm decisions. • Vietnam joint venture and self-built projects progressing; exploratory teams dispatched to additional Southeast Asian markets.

Outlook Management will prioritize cost reduction, slaughter capacity utilization and value-added pork products, while continuing overseas expansion and digitalization to navigate a weak hog-price environment.