Breeding costs drop to 12 yuan/kg! Muyuan Foods' slaughter and meat business achieves profitability in its first year

(Source: Finance News)

          The company plans to distribute a cash dividend of 4.27 yuan (tax included) for every 10 shares to all shareholders.            

On March 27, Muyuan Foods (002714.SZ) published its annual report, stating that in 2025, the company achieved an operating revenue of 144.145 billion yuan, a year-on-year increase of 4.49%; the net profit attributable to shareholders of the listed company was 15.487 billion yuan, a year-on-year decrease of 13.39%. The company plans to distribute a cash dividend of 4.27 yuan (tax included) for every 10 shares to all shareholders.

In 2025, the company sold 77.981 million live pigs, slaughtered 28.663 million pigs, and sold 3.23 million tons of fresh and frozen pork products. The company achieved an operating revenue of 144.145 billion yuan, an increase of 4.49% compared to the same period last year; the net profit was 15.812 billion yuan, down 16.45% year-on-year, mainly due to the decline in pig prices. The slaughtering and meat business achieved an operating revenue of 45.228 billion yuan, an increase of 86.32% compared to the same period last year, and for the first time in 2025 achieved annual profitability.

In 2025, the stability of pig farming production was significantly enhanced through the efficient transformation of technological achievements into actual productivity, with the survival rate of pigs and various indicators steadily improving and costs significantly decreasing. The total cost of pig farming for the entire year of 2025 was about 12 yuan/kg, a decrease of about 2 yuan/kg compared to the same period last year. These substantial results validate the value and direction of the company’s years of innovation, research, and practical exploration. In the future, as the company continues to invest in disease prevention and control, nutritional formulation, breeding of breeding pigs, intelligence and information technology, and talent cultivation, the optimization of production management at all stages will gradually enhance the company’s production efficiency, and the total cost of pig farming is expected to decrease further.

In 2025, the company shifted from focusing on farming efficiency and disease resistance to deeply enhancing pork quality. Through breeding technology, it cultivated richer marbling in high-quality pork belly, offering more refined segmentation of pork products so that consumers at different consumption levels can obtain products that meet their needs. The company actively expanded sales channels for the slaughtering and meat business, continuously building a national pork sales network. By the end of 2025, the slaughtering and meat business had established over 70 sales branches in 20 provincial-level administrative regions nationwide. The company continuously optimized its customer structure and product structure, enhancing production efficiency and operational capability through increased investment in digitalization and intelligence. The slaughtering and meat business achieved profitability in both the third and fourth quarters of 2025, with an annual capacity utilization rate reaching 98.8%.

In 2025, the pig market prices came under pressure and showed a downward trend, posing severe challenges to the overall operation of the industry. The company adhered to continuously improving its financial structure, with total liabilities at the end of the year decreasing by 17.1 billion yuan compared to the beginning of the year, and the debt-to-asset ratio decreased by 4.53 percentage points compared to the beginning of the year. At the same time, the company places a high priority on reasonable returns for investors, actively rewarding shareholders through practical actions. During the reporting period, two rounds of equity distribution were implemented, with a total dividend of 8.085 billion yuan; the company completed the repurchase of its shares, with a total buyback amount of approximately 2 billion yuan for the year. During the reporting period, the company formulated the “Market Value Management System” to systematically and regularly strengthen the company’s market value management work.

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