Core Viewpoint - The report maintains a positive outlook on COFCO Joycome (01610), projecting net profits of 760 million and 1.15 billion yuan for 2025 and 2026 respectively, with a target price increase of 39% to HKD 2.5, indicating a potential upside of 33% [1] Group 1: Pig Farming and Fresh Meat Business - The pig farming segment is experiencing high-quality growth, with revenue for 1H25 increasing by 68.7% to 4.494 billion yuan, driven by an 83% increase in slaughter volume to 2.899 million heads [2] - The fresh pork segment has shown significant improvement, with revenue rising by 21% to 2.54 billion yuan, and brand revenue share increasing by 4.5 percentage points to 31.2% [2] - The sales volume of branded boxed pork surged by 47% to 27.79 million boxes, while sales of flaxseed pork increased by 123% [2] Group 2: Cost Management and Financial Health - The company has successfully reduced farming costs, with total costs estimated at 13.0-13.5 yuan per kilogram in 2Q25, and further optimization expected in 2H25 due to improved breeding efficiency and the "company + farmer" model [3] - The financial position remains robust, with a debt-to-asset ratio of 53.2% at the end of 1H25, reflecting a slight increase due to the acquisition of COFCO Jiahua [3] Group 3: Strategic Initiatives and Future Outlook - The company is enhancing its light-asset model to increase the flexibility of pig farming output, with a target slaughter volume of 5-6 million heads for 2025 [4] - The brand strategy is yielding results, with efforts to improve product quality and expand sales channels, which is expected to gradually enhance profit contributions [4]

Core Viewpoint - The report from CICC maintains a positive outlook on COFCO Joycome (01610), projecting net profits of 760 million and 1.15 billion yuan for 2025 and 2026 respectively, with a target price increase of 39% to 2.5 HKD, indicating a potential upside of 33% [1] Group 1: Pig Farming and Fresh Meat Business - The pig farming segment is experiencing high-quality growth, with a 68.7% year-on-year revenue increase to 4.494 billion yuan in 1H25, driven by an 83% increase in slaughter volume to 2.899 million heads [2] - The fresh pork segment shows significant improvement, with revenue rising 21% year-on-year to 2.54 billion yuan in 1H25, and brand revenue share increasing by 4.5 percentage points to 31.2% [2] - The sales volume of branded boxed pork surged by 47% to 27.79 million boxes, while sales of flaxseed pork increased by 123% year-on-year [2] Group 2: Cost Management and Financial Health - The company is effectively reducing farming costs, with total costs projected at 13.0-13.5 yuan per kilogram in Q2 2025, and further optimization expected in H2 2025 due to improved breeding systems and operational efficiencies [3] - The financial position remains robust, with a debt-to-asset ratio of 53.2% at the end of 1H25, reflecting a slight increase due to the acquisition of COFCO Jiahua [3] Group 3: Strategic Initiatives and Future Outlook - The company is exploring a light-asset farming model, which is expected to enhance the elasticity of slaughter volumes, with projections of 5-6 million heads for 2025 [4] - The brand strategy is yielding results, with efforts to enhance product quality and expand sales channels, indicating a gradual increase in profit contributions from the fresh meat segment [4]

业绩回升背后的结构性挑战 从收入构成来看，中粮家佳康上半年营收增长主要得益于生猪价格回暖。公司在业绩展望中提出，将通 过全价值链成本管控、科技创新、品牌建设等措施提升竞争力。然而，财务数据显示公司仍面临结构性 压力。 2024年年报数据显示，公司毛利率仅为2.87%，较2023年的10.59%大幅下降。净利率为3.39%，虽较 2023年负值有所改善，但仍处于较低水平。流动比率0.75倍，低于1的安全线，显示短期偿债能力存在 压力。 资产负债率从2023年的43.03%上升至2024年的52.87%，负债水平明显提升。其中，短期贷款从2023年 的49.49亿元下降至44.02亿元，但长期贷款从1.53亿元大幅增至17.28亿元，债务结构发生明显变化。 生猪养殖业务承压明显 生产性生物资产项目反映了公司养殖规模的变化。2024年末该项目为23.89亿元，较2023年末的16.35亿 元有所增长，但仍低于2022年末的25.25亿元水平。这一数据变化反映出公司在行业周期波动中对养殖 规模的调整。 现金流方面，2024年经营活动现金净额为6.52亿元，较2023年的18.72亿元大幅下降。投资活动现金净流 出18 ...

本集团持续加大品牌传播和渠道开拓力度，本期品牌收入佔比同比提升4.5个百分点。 中粮家佳康(01610)发布2025年中期业绩，生物资产公允价值调整后，该集团取得营业收入人民币89.63 亿元(单位下同)，同比增加19.77%;公司拥有人应占溢利3.17亿元，同比增加0.2%;每股基本盈利0.0691 元。 本集团营业收入89.63亿元，同比上升19.8%，主要养殖业务稳定生产节奏、提升生产效率，分部营业收 入增长。 生物资产公允价值调整前本公司拥有人应占溢利为1.98亿元，同比扭亏为盈，主要生猪养殖业务稳定生 产节奏、成本改善，生鲜业务大幅减亏。生物资产公允价值调整后本公司拥有人应占溢利为人民币3.17 亿元。生物资产公允价值乃根据2025年6月底的生猪价格进行调整。 ...

Core Viewpoint - COFCO Jiajia Kang (01610) reported a significant increase in revenue and profit for the first half of 2025, driven by stable production in its pig farming business and improved cost management [1] Financial Performance - The company achieved a revenue of RMB 8.963 billion, representing a year-on-year increase of 19.77% [1] - The profit attributable to shareholders was RMB 317 million, showing a slight increase of 0.2% year-on-year [1] - Basic earnings per share were RMB 0.0691 [1] Business Operations - The company has intensified its brand promotion and channel expansion efforts, with brand revenue proportion increasing by 4.5 percentage points year-on-year [1] - The stable production rhythm and enhanced production efficiency in the pig farming segment contributed to the revenue growth [1] - Before the fair value adjustment of biological assets, the profit attributable to shareholders was RMB 198 million, marking a turnaround from loss to profit, primarily due to stable production and cost improvements in the pig farming business [1] Biological Assets - After the fair value adjustment, the profit attributable to shareholders increased to RMB 317 million, with the adjustment based on pig prices as of June 30, 2025 [1]

格隆汇8月25日丨中粮家佳康(01610.HK)公布中期业绩，2025年上半年，集团营业收入为人民币89.63亿 元，较2024年同期人民币74.83亿元增加人民币14.80亿元。在生物资产公允价值调整前，集团期内溢利 为人民币2.03亿元，2024年同期净亏损为人民币3.15亿元。营收增长主要是养殖业务稳定生产节奏、提 升生产效率。 2025年上半年，集团毛利率在生物资产公允价值调整前为8.2%，同比上升7.2个百分点，毛利率上升主 要来源于生猪养殖业务。 ...

[Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) The company achieved significant year-on-year growth in operating revenue and turned profitable before fair value adjustments of biological assets, driven by improved farming efficiency and reduced losses in the fresh meat business Key Operating Data (For the Six Months Ended June 30) | Indicator | 2025 | 2024 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Hog Slaughter Volume (Thousand Heads) | 2,898 | 1,584 | 83.0% | | Average Sales Price of Commercial Hogs (RMB/kg) | 14.59 | 15.28 | -4.5% | | Fresh Pork Sales Volume (Thousand Tons) | 150 | 120 | 25.1% | | Branded Boxed Pork Sales Volume (Thousand Boxes) | 27,792 | 18,968 | 46.5% | | Brand Revenue Share in Fresh Pork Business | 31.2% | 26.7% | Increased by 4.5 percentage points | | Meat Import Sales Volume (Thousand Tons) | 34 | 33 | 2.5% | Key Financial Data (For the Six Months Ended June 30) | Indicator | 2025 (Before Fair Value Adjustment of Biological Assets) | 2025 (After Fair Value Adjustment of Biological Assets) | 2024 (Before Fair Value Adjustment of Biological Assets) | 2024 (After Fair Value Adjustment of Biological Assets) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue (RMB Thousands) | 8,963,004 | 8,963,004 | 7,483,311 | 7,483,311 | | Profit/(Loss) for the Period (RMB Thousands) | 203,390 | 321,951 | (314,992) | 323,024 | | Profit/(Loss) Attributable to Owners of the Company (RMB Thousands) | 198,174 | 316,735 | (321,947) | 316,069 | | Basic Earnings/(Loss) Per Share (RMB) | 0.0433 | 0.0691 | (0.0703) | 0.0690 | - Revenue increased by **19.8%** year-on-year, primarily due to stable production pace and efficiency improvements in the farming business[6](index=6&type=chunk) - Before fair value adjustment of biological assets, profit attributable to owners of the company turned profitable to **RMB 198 million**, mainly due to improved costs in the hog farming business and significant loss reduction in the fresh meat business[6](index=6&type=chunk) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[5](index=5&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the company's financial performance for the six months ended June 30, detailing revenue, costs, and profit/loss before and after fair value adjustments of biological assets Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the Six Months Ended June 30) | Indicator | 2025 (Before Fair Value Adjustment of Biological Assets) | 2025 (Total) | 2024 (Before Fair Value Adjustment of Biological Assets) | 2024 (Total) | | :--- | :--- | :--- | :--- | :--- | | Revenue (RMB Thousands) | 8,963,004 | 8,963,004 | 7,483,311 | 7,483,311 | | Cost of Sales (RMB Thousands) | (8,232,263) | (8,767,776) | (7,408,512) | (7,306,011) | | Gross Profit (RMB Thousands) | 730,741 | 195,228 | 74,799 | 177,300 | | Other Income (RMB Thousands) | 164,147 | 164,147 | 191,069 | 191,069 | | Other Gains and Losses (RMB Thousands) | (19,051) | (19,051) | 35,149 | 35,149 | | Selling and Distribution Costs (RMB Thousands) | (266,477) | (266,477) | (258,232) | (258,232) | | Administrative Expenses (RMB Thousands) | (302,922) | (302,922) | (268,986) | (268,986) | | Finance Costs (RMB Thousands) | (64,782) | (64,782) | (64,986) | (64,986) | | Profit Before Tax (RMB Thousands) | 229,301 | 347,862 | (290,685) | 347,331 | | Profit for the Period (RMB Thousands) | 203,390 | 321,951 | (314,992) | 323,024 | | Profit Attributable to Owners of the Company (RMB Thousands) | 316,735 | 316,069 | | | | Basic Earnings Per Share (RMB) | 0.0691 | 0.0690 | | | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement provides a snapshot of the company's assets, liabilities, and equity as of June 30, highlighting the composition of non-current and current financial positions Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | June 30, 2025 (RMB Thousands) | December 31, 2024 (RMB Thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Property, Plant and Equipment | 12,663,931 | 12,033,230 | | Biological Assets | 909,545 | 919,651 | | Total Non-current Assets | 14,608,879 | 14,043,794 | | **Current Assets** | | | | Inventories | 1,587,712 | 1,433,305 | | Biological Assets | 2,792,938 | 2,389,057 | | Cash and Bank Balances | 635,711 | 1,063,987 | | Total Current Assets | 6,559,187 | 6,313,027 | | **Current Liabilities** | | | | Bank Borrowings | 6,190,137 | 2,609,132 | | Loans from Related Companies | 492,500 | 1,792,500 | | Total Current Liabilities | 9,169,076 | 8,441,618 | | Net Current Liabilities | (2,609,889) | (2,128,591) | | **Non-current Liabilities** | | | | Bank Borrowings | 1,361,279 | 1,621,963 | | Total Non-current Liabilities | 2,082,467 | 2,321,899 | | **Total Equity** | | | | Total Equity | 9,916,523 | 9,593,304 | - As of June 30, 2025, the Group's current liabilities exceeded its current assets by **RMB 2.61 billion**, but the Board expects sufficient bank financing to meet its liabilities[13](index=13&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed explanations and disclosures for the condensed consolidated financial statements, covering accounting policies, segment information, and specific financial line items [1 Basis of Preparation and Presentation](index=7&type=section&id=1%20%E7%B7%A8%E8%A3%BD%E5%8F%8A%E5%91%88%E5%88%97%E5%9F%BA%E7%A4%8E) This section outlines the basis for preparing the interim financial statements, including the accounting standards followed, currency unit, and accounting treatment for the COFCO Giahua acquisition, emphasizing retrospective restatement for common control combination - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the Hong Kong Institute of Certified Public Accountants and the Listing Rules of the Hong Kong Stock Exchange[12](index=12&type=chunk) - The acquisition of 100% equity in COFCO Giahua Industrial Co., Ltd. was completed in December 2024; as COFCO Group controlled the entity both before and after the acquisition, it was accounted for as a common control business combination, and comparative figures have been retrospectively restated[12](index=12&type=chunk)[13](index=13&type=chunk) - As of June 30, 2025, the Group's net current liabilities amounted to **RMB 2.61 billion**, but the Board, based on available bank financing, expects the Group to have sufficient resources to meet its liabilities and continue as a going concern[13](index=13&type=chunk) [2 Significant Accounting Policies](index=7&type=section&id=2%20%E4%B8%BB%E8%A6%81%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) This section describes the significant accounting policies adopted in the condensed consolidated financial statements, noting that, apart from the application of revised HKFRSs, accounting policies remain consistent with the prior year, and the revisions have no material impact on financial performance - The condensed consolidated financial statements are prepared on a historical cost basis, except for biological assets and certain financial instruments measured at fair value at the end of the reporting period[14](index=14&type=chunk) - Revised Hong Kong Financial Reporting Standards were first applied in this interim period, but they had no material impact on the financial performance and position for this period and prior periods[15](index=15&type=chunk)[16](index=16&type=chunk) [3 Revenue from Contracts with Customers](index=8&type=section&id=3%20%E5%AE%A2%E6%88%B6%E5%90%88%E7%B4%84%E6%94%B6%E7%9B%8A) During the reporting period, the company's total revenue from contracts with customers was **RMB 8.963 billion**, primarily from hog farming and sales, feed sales, fresh pork sales, meat product sales, and imported meat product sales, with a significant year-on-year increase in hog farming and sales revenue Revenue from Contracts with Customers (For the Six Months Ended June 30) | Product or Service Type | 2025 (RMB Thousands) | 2024 (RMB Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Hog Farming and Sales | 2,656,526 | 1,226,591 | 116.6% | | Feed Products | 2,393,490 | 2,912,491 | -17.8% | | Fresh Pork | 2,490,985 | 2,063,075 | 20.7% | | Meat Products | 378,804 | 376,803 | 0.5% | | Imported Meat Products | 1,043,199 | 904,351 | 15.3% | | **Total** | **8,963,004** | **7,483,311** | **19.8%** | - All revenue is recognized at a point in time[17](index=17&type=chunk) [4 Segment Information](index=8&type=section&id=4%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The company is divided into five reportable operating segments based on product or service type: hog farming, feed, fresh pork, meat products, and meat import and export, with restated segment data for the corresponding period in 2024 to reflect changes in business structure after the COFCO Giahua acquisition - The Group has five reportable operating segments: hog farming, feed, fresh pork, meat products, and meat import and export[18](index=18&type=chunk)[19](index=19&type=chunk) - Comparative segment information for 2024 has been restated to reflect the business structure after the COFCO Giahua acquisition[19](index=19&type=chunk) Segment Revenue and Results (For the Six Months Ended June 30) | Segment | 2025 Segment Revenue (External Customers, RMB Thousands) | 2025 Segment Results (RMB Thousands) | 2024 Segment Revenue (External Customers, RMB Thousands) | 2024 Segment Results (RMB Thousands) | | :--- | :--- | :--- | :--- | :--- | | Hog Farming | 2,656,526 | 243,889 | 1,226,591 | (375,158) | | Feed | 2,393,490 | 55,812 | 2,912,491 | 100,572 | | Fresh Pork | 2,490,985 | (4,296) | 2,063,075 | (27,633) | | Meat Products | 378,804 | 6,183 | 376,803 | 21,675 | | Meat Import | 1,043,199 | 15,796 | 904,351 | 28,208 | | **Total Segments** | **8,963,004** | **317,384** | **7,483,311** | **(252,336)** | - The hog farming segment's performance turned from loss to profit, increasing by **RMB 619 million** year-on-year[21](index=21&type=chunk) - The fresh pork segment's performance significantly reduced losses by **RMB 23.34 million** year-on-year[21](index=21&type=chunk) [5 Other Income](index=10&type=section&id=5%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) During the reporting period, the company's total other income was **RMB 164 million**, a year-on-year decrease, mainly due to lower dividend income and bank interest income, with government grants remaining a significant component Other Income (For the Six Months Ended June 30) | Item | 2025 (RMB Thousands) | 2024 (RMB Thousands) | | :--- | :--- | :--- | | Bank Interest Income | 1,021 | 6,934 | | Interest Income from Related Companies | 4,547 | 5,519 | | Dividend Income from Equity Instruments at Fair Value Through Other Comprehensive Income | 37,500 | 75,000 | | Government Grants | 121,079 | 103,616 | | **Total** | **164,147** | **191,069** | - Government grants are mainly related to the harmless disposal of dead pigs and the construction of hog farms, with a year-on-year increase in government grants for the current period[25](index=25&type=chunk) [6 Other Gains and Losses](index=11&type=section&id=6%20%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D) During the reporting period, the company's total other gains and losses amounted to a loss of **RMB 19.051 million**, a significant decrease from a gain of **RMB 35.149 million** in the prior year, mainly due to fair value changes in foreign currency forward contracts and losses from disposal of property, plant and equipment Other Gains and Losses (For the Six Months Ended June 30) | Item | 2025 (RMB Thousands) | 2024 (RMB Thousands) | | :--- | :--- | :--- | | Net Exchange Gain | 111 | 3,710 | | Net Loss/(Gain) on Disposal of Property, Plant and Equipment | (512) | 17,098 | | Write-down of Inventories to Net Realizable Value | (2,459) | (9,516) | | Net Loss/(Gain) on Fair Value Changes of Foreign Currency Forward Contracts, Realized and Unrealized | (13,563) | 9,243 | | **Total** | **(19,051)** | **35,149** | [7 Finance Costs](index=11&type=section&id=7%20%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) During the reporting period, the company's total finance costs were **RMB 64.782 million**, largely consistent with the prior year, with an increase in bank loan interest expenses, but some borrowing costs were capitalized Finance Costs (For the Six Months Ended June 30) | Item | 2025 (RMB Thousands) | 2024 (RMB Thousands) | | :--- | :--- | :--- | | Interest on Bank Borrowings | 52,509 | 38,494 | | Interest on Loans from Related Companies | 14,594 | 14,803 | | Interest on Lease Liabilities | 7,981 | 9,810 | | Interest on Long-term Payables | 2,987 | 3,097 | | Total Borrowing Costs | 78,071 | 66,204 | | Less: Borrowing Costs Capitalized in Cost of Qualifying Assets | (13,289) | (1,218) | | **Total** | **64,782** | **64,986** | [8 Profit Before Tax](index=12&type=section&id=8%20%E9%99%A4%E7%A8%85%E5%89%8D%E6%BA%A2%E5%88%A9) During the reporting period, the company's profit before tax (before fair value adjustment of biological assets) turned profitable to **RMB 229 million**, compared to a loss of **RMB 291 million** in the prior year, mainly due to the combined impact of increased inventory costs, fair value changes in biological assets, and depreciation and amortization Components of Profit Before Tax (For the Six Months Ended June 30) | Item | 2025 (RMB Thousands) | 2024 (RMB Thousands) | | :--- | :--- | :--- | | Cost of Inventories Recognized | 8,210,681 | 7,400,762 | | Net Loss on Fair Value Changes of Commodity Futures Contracts, Realized and Unrealized | 21,582 | 7,750 | | Loss/(Gain) on Fair Value Changes of Biological Assets | 535,513 | (102,501) | | Total Cost of Sales | 8,767,776 | 7,306,011 | | Total Depreciation and Amortization | 398,527 | 380,622 | | Less: Capitalized in Biological Assets | (237,688) | (244,336) | - Fair value changes in biological assets shifted from a gain to a loss, negatively impacting cost of sales[29](index=29&type=chunk) [9 Income Tax Expense](index=12&type=section&id=9%20%E6%89%80%E5%BE%97%E7%A8%85%E9%96%8B%E6%94%AF) During the reporting period, the company's income tax expense was **RMB 25.911 million**, a slight increase from the prior year, primarily Chinese corporate income tax, with some Chinese subsidiaries benefiting from tax exemptions Income Tax Expense (For the Six Months Ended June 30) | Item | 2025 (RMB Thousands) | 2024 (RMB Thousands) | | :--- | :--- | :--- | | China Corporate Income Tax | 27,504 | 26,216 | | Over-provision in Prior Years | (1,085) | (568) | | Deferred Tax | (508) | (1,341) | | **Total Income Tax Expense** | **25,911** | **24,307** | - Chinese subsidiaries are subject to a **25%** corporate income tax rate, but income from initial processing of agricultural products and livestock/poultry farming projects is exempt from corporate income tax[30](index=30&type=chunk) [10 Earnings Per Share](index=13&type=section&id=10%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) During the reporting period, the company's basic earnings per share were **RMB 0.0691**, largely consistent with the prior year, and no diluted earnings per share were presented due to the absence of potential ordinary shares Calculation of Basic Earnings Per Share (For the Six Months Ended June 30) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (RMB Thousands) | 316,735 | 316,069 | | Weighted Average Number of Ordinary Shares (Thousand Shares) | 4,581,998 | 4,581,998 | | **Basic Earnings Per Share (RMB)** | **0.0691** | **0.0690** | - No potential ordinary shares were outstanding during either period, thus no diluted earnings per share were presented[32](index=32&type=chunk) [11 Dividends](index=13&type=section&id=11%20%E8%82%A1%E6%81%AF) The Board has resolved not to declare an interim dividend for the six months ended June 30, 2025, consistent with the prior year - No dividends were paid, declared, or proposed for the six months ended June 30, 2025 and 2024[33](index=33&type=chunk) [12 Trade Receivables](index=13&type=section&id=12%20%E6%87%89%E6%94%B6%E8%B3%B4%E6%AC%BE) As of June 30, 2025, the company's total trade receivables were **RMB 372 million**, an increase from the end of 2024, with most receivables aged within 90 days Trade Receivables (As of June 30) | Item | June 30, 2025 (RMB Thousands) | December 31, 2024 (RMB Thousands) | | :--- | :--- | :--- | | Trade Receivables from Contracts with Customers | 399,246 | 309,990 | | Less: Provision for Credit Losses | (27,413) | (27,416) | | **Total** | **371,833** | **282,574** | Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2025 (RMB Thousands) | December 31, 2024 (RMB Thousands) | | :--- | :--- | :--- | | Within 90 days | 370,753 | 281,666 | | 90 to 180 days | 936 | 769 | | 180 days to 1 year | 82 | – | | Over 1 year | 62 | 139 | [13 Balances with Related Companies](index=14&type=section&id=13%20%E8%88%87%E9%97%9C%E8%81%AF%E5%85%AC%E5%8F%B8%E7%9A%84%E7%B5%90%E9%A4%98) As of June 30, 2025, the company had trade-related receivables from and payables to related companies, with a decrease in receivables from related companies and a significant reduction in payables to related companies due to the settlement of acquisition consideration Ageing Analysis of Trade Receivables from Related Companies (As of June 30) | Ageing | June 30, 2025 (RMB Thousands) | December 31, 2024 (RMB Thousands) | | :--- | :--- | :--- | | Within 90 days | 35,527 | 143,195 | | Over 90 days but less than 1 year | 23,218 | 10,928 | | Over 1 year | 4,574 | 2,784 | | **Total Trade Receivables from Related Companies** | **63,319** | **156,907** | Ageing Analysis of Trade Payables to Related Companies (As of June 30) | Ageing | June 30, 2025 (RMB Thousands) | December 31, 2024 (RMB Thousands) | | :--- | :--- | :--- | | Within 90 days | 103,010 | 87,332 | | Over 90 days but less than 1 year | 11,220 | 12,015 | | Over 1 year | 46 | 9 | | **Total Trade Payables to Related Companies** | **114,276** | **99,356** | - Trade payables to related companies as of December 31, 2024, included the consideration for the acquisition of COFCO Giahua of **RMB 1.569 billion**, which was fully settled during the current interim period[37](index=37&type=chunk) [14 Trade Payables](index=15&type=section&id=14%20%E6%87%89%E4%BB%98%E8%B3%B4%E6%AC%BE) As of June 30, 2025, the company's total trade payables were **RMB 815 million**, a decrease from the end of 2024, with the vast majority of payables aged within 1 year Trade Payables (As of June 30) | Item | June 30, 2025 (RMB Thousands) | December 31, 2024 (RMB Thousands) | | :--- | :--- | :--- | | **Trade Payables** | **815,008** | **893,278** | Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2025 (RMB Thousands) | December 31, 2024 (RMB Thousands) | | :--- | :--- | :--- | | Within 1 year | 814,519 | 892,090 | | 1 to 2 years | 450 | 1,188 | | Over 2 years | 39 | – | - Trade payables are interest-free, with credit terms generally ranging from 15 to 60 days[39](index=39&type=chunk) [I. Company Overview](index=16&type=section&id=%E4%B8%80%E3%80%81%20%E5%85%AC%E5%8F%B8%E6%A6%82%E6%B3%81) This section provides an overview of COFCO Joycome, detailing its business segments, strategic acquisitions, and commitment to full industry chain development and market leadership [Company Profile](index=16&type=section&id=%E5%85%AC%E5%8F%B8%E7%B0%A1%E4%BB%8B) COFCO Joycome is COFCO Group's meat business platform, listed in 2016, primarily engaged in feed, hog farming, fresh pork, meat products, and meat import/export, further strengthening its full industry chain layout and enhancing profitability through the acquisition of COFCO Giahua - The company is COFCO Group's meat business platform, listed on the Main Board of the Stock Exchange on November 1, 2016 (Stock Code: 1610)[41](index=41&type=chunk) - Its business covers feed R&D, hog farming, fresh pork, meat product production and sales, and meat product import and export distribution[41](index=41&type=chunk) - In 2024, through the strategic acquisition of COFCO Giahua Industrial Co., Ltd., the company further improved its feed processing capacity layout, aiming to integrate upstream resources, reduce farming costs, optimize business structure, and enhance earnings stability[41](index=41&type=chunk) [Segment Business Overview](index=16&type=section&id=%E5%88%86%E9%83%A8%E6%A5%AD%E5%8B%99%E7%B0%A1%E4%BB%8B) The company's business is divided into five major segments: hog farming, feed, fresh pork, meat products, and meat import/export, each with modern production bases and clear brand strategies, committed to technological upgrading, market expansion, and brand building [Hog Farming](index=16&type=section&id=%E7%94%9F%E8%B1%AC%E9%A4%8A%E6%AE%96) The hog farming segment covers feed production, breeding pig propagation, and hog rearing; the company has modern farming bases in multiple provinces and cities, vigorously promoting breeding breakthroughs, intelligent upgrades, and the introduction of scientific research talents to develop new quality productive forces - The hog farming segment includes feed production, breeding pig propagation, and hog rearing businesses[42](index=42&type=chunk) - The company has modern hog farming bases in provinces and cities such as Jilin, Inner Mongolia, Hebei, Henan, Jiangsu, and Hubei[42](index=42&type=chunk) - Vigorously promoting breeding breakthroughs, intelligent upgrades, accelerating the introduction of high-end scientific research talents, and developing new quality productive forces[42](index=42&type=chunk) [Feed](index=16&type=section&id=%E9%A3%BC%E6%96%99) The feed segment, centered on COFCO Feed, provides comprehensive animal nutrition solutions covering feed products for pigs, ruminants, poultry, and aquaculture, continuously expanding capacity with an investment philosophy of 'market first, then layout,' and enhancing market influence with 'Wugu Fengdeng' and 'Ruike' brands - COFCO Feed provides products such as pig, ruminant, poultry, and aquaculture feeds and premixes, along with supporting technical services[43](index=43&type=chunk) - In January 2025, the Hohhot feed mill with an annual capacity of **180,000 tons** officially commenced operation, with an additional **660,000 tons** of feed processing capacity under development, further expanding the scale of feed processing[43](index=43&type=chunk) - The brand influence of core brands 'Wugu Fengdeng' and 'Ruike' is steadily increasing, and market scale is expanding[43](index=43&type=chunk) [Fresh Pork](index=17&type=section&id=%E7%94%9F%E9%AE%AE%E8%B1%AC%E8%82%89) The fresh pork segment primarily engages in hog slaughtering and butchering, and the distribution and sale of chilled pork, possessing four modern slaughtering and processing bases and two butchering centers, covering major national consumer markets through the 'Joycome' brand and vigorously promoting brand operations - The fresh pork segment includes hog slaughtering and butchering, and the distribution and sale of fresh pork, with products primarily being chilled pork[44](index=44&type=chunk) - It has four modern slaughtering and processing bases in Jiangsu, Hubei, Jilin, and Inner Mongolia, and two butchering centers in Guangdong and Beijing[44](index=44&type=chunk) - Through the 'Joycome' brand, it covers major pork consumer markets in provinces and regions such as Beijing, Shanghai and the Yangtze River Delta, Guangdong, Hubei, Jilin, and Inner Mongolia[44](index=44&type=chunk) [Meat Products](index=17&type=section&id=%E8%82%89%E8%A3%BD%E5%93%81) The meat products segment primarily produces and sells Western-style low-temperature meat products, possessing two modern processing bases, further enhancing capacity through mergers, acquisitions, and expansions, covering major first-tier city markets in China with its 'Wanweike' and 'Joycome' brands - The meat products segment includes the production, distribution, and sale of various meat products (primarily Western-style low-temperature meat products)[45](index=45&type=chunk) - It has two modern meat product processing bases in Jiangsu and Guangdong, and in July 2025, acquired a high-quality meat deep processing factory in Pinghu City, Jiaxing, Zhejiang (with an annual capacity of **9,000 tons**)[45](index=45&type=chunk) - Through its 'Wanweike' and 'Joycome' brands, it covers major meat product consumer markets in first-tier cities in China[45](index=45&type=chunk) [Meat Import and Export](index=17&type=section&id=%E8%82%89%E9%A1%9E%E9%80%B2%E5%8F%A3) The meat import and export segment primarily imports and distributes products and by-products such as pork, beef, poultry, and lamb in China, providing high-value-added products to renowned food processors and large catering enterprises by combining imported raw materials with domestic processing capacity - The meat import and export segment includes the import and domestic distribution of meat products (including pork, beef, poultry, and lamb) and by-products[46](index=46&type=chunk) - By combining imported raw materials with domestic processing capacity and serving major clients, it provides high-value-added products to renowned domestic food processors, large chain catering enterprises, and others[46](index=46&type=chunk) [II. Market Overview](index=17&type=section&id=%E4%BA%8C%E3%80%81%20%E5%B8%82%E5%A0%B4%E6%A6%82%E8%A7%88) This section provides an overview of the market conditions in H1 2025, covering trends in feed production, hog supply and demand, consumer market recovery, and meat import volumes [Slight Increase in Feed Production, Clear Trend of Industry Technology Upgrades](index=17&type=section&id=%E9%A3%BC%E6%96%99%E7%94%A2%E9%87%8F%E5%B0%8F%E5%B9%85%E5%A2%9E%E9%95%B7%EF%BC%8C%E8%A1%8C%E6%A5%AD%E6%8A%80%E8%A1%93%E5%8D%87%E7%B4%9A%E8%B6%A8%E5%8B%A2%E6%98%8E%E9%A1%AF) In H1 2025, national industrial feed output increased by **7.7%** year-on-year, driven by recovering aquaculture demand and stable hog and poultry farming. Feed raw material prices fluctuated, with average corn prices down **6.3%** and soybean meal prices down **5.2%** year-on-year. The industry shows a clear trend of technological upgrades, with low-protein diets and soybean meal reduction policies continuously advancing Key Feed Market Data (H1 2025) | Indicator | Data | Year-on-Year Change | | :--- | :--- | :--- | | National Industrial Feed Output | 158.5 Million Tons | Increased by 7.7% | | Average Spot Corn Price | RMB 2,050/Ton (early year) to RMB 2,410/Ton (end of June) | Decreased by 6.3% (H1 average price) | | Average Soybean Meal Price | RMB 4,062/Ton (peaked in April) to RMB 2,932/Ton (end of June) | Decreased by 5.2% (H1 average price) | - The industry shows a clear trend of technological upgrades, with low-protein diet technology and soybean meal reduction policies continuously advancing[47](index=47&type=chunk) [Tight Balance in Hog Supply and Demand, Pig Prices Fell First Then Rebounded](index=18&type=section&id=%E7%94%9F%E8%B1%AC%E4%BE%9B%E9%9C%80%E7%B7%8A%E5%B9%B3%E8%A1%A1%EF%BC%8C%E8%B1%AC%E5%83%B9%E5%85%88%E8%B7%8C%E5%BE%8C%E5%8F%8D%E5%BD%88) In H1 2025, national hog slaughter volume and pork production saw slight increases, with breeding sow inventory remaining at the upper limit of the green reasonable range for capacity regulation, indicating a tight market balance. Hog prices generally fell in the first half but rebounded in late June, with average prices down **3.9%** year-on-year Key Hog Market Data (H1 2025) | Indicator | Data | Year-on-Year Change | | :--- | :--- | :--- | | National Hog Slaughter Volume | 366 Million Heads | Increased by 0.6% | | Pork Production | 30.2 Million Tons | Increased by 1.3% | | Breeding Sow Inventory (end of June) | 40.43 Million Heads | 103.7% of normal retention | | National Average Hog Price | RMB 14.77/kg | Decreased by 3.9% | - The hog market remains in a tight supply-demand balance, with breeding sow inventory at the upper limit of the green reasonable range for capacity regulation[48](index=48&type=chunk) [Consumer Market Recovery, Growth in Health and Quality Demand, Differentiated Brand Advantages Emerge](index=18&type=section&id=%E6%B6%88%E8%B2%BB%E5%B8%82%E5%A0%B4%E5%BE%A9%E7%94%A6%EF%BC%8C%E5%81%A5%E5%BA%B7%E3%80%81%E5%93%81%E8%B3%AA%E9%9C%80%E6%B1%82%E5%A2%9E%E9%95%B7%EF%BC%8C%E5%B7%AE%E7%95%B0%E5%8C%96%E5%93%81%E7%89%8C%E5%84%AA%E5%8B%A2%E9%A1%AF%E7%8F%BE) In H1 2025, total retail sales of consumer goods increased by **5.0%** year-on-year, and catering revenue grew by **4.3%**, indicating a moderate consumer market recovery. Consumers' pursuit of quality and emotional connection to brands deepened, with flaxseed antibiotic-free branded boxed pork gaining higher recognition due to its high quality, standardization, and nutritional health characteristics, demonstrating clear differentiated advantages Key Consumer Market Data (H1 2025) | Indicator | Data | Year-on-Year Change | | :--- | :--- | :--- | | Total Retail Sales of Consumer Goods | RMB 24.5 Trillion | Increased by 5.0% | | Catering Revenue | RMB 2.7 Trillion | Increased by 4.3% | - The consumer market showed a quarter-on-quarter recovery trend, with Q2 growing by **5.4%**, accelerating by **0.8 percentage points** compared to Q1[49](index=49&type=chunk) - Consumers' pursuit of quality and emotional connection to brands deepened, with flaxseed antibiotic-free branded boxed pork demonstrating clear differentiated advantages due to its high quality, standardization, and nutritional health characteristics[49](index=49&type=chunk) [Beef Imports Further Decreased, Total Meat Imports Hit a Six-Year Low](index=18&type=section&id=%E7%89%9B%E8%82%89%E9%80%B2%E5%8F%A3%E9%87%8F%E9%80%B2%E4%B8%80%E6%AD%A5%E6%B8%9B%E5%B0%91%EF%BC%8C%E9%80%B2%E5%8F%A3%E8%82%89%E7%B8%BD%E9%87%8F%E9%99%8D%E8%87%B3%E5%85%AD%E5%B9%B4%E5%85%A7%E6%96%B0%E4%BD%8E) In H1 2025, China's total meat imports decreased by **2.7%** year-on-year, reaching a six-year low. Pork imports increased by **4.9%**, while beef imports decreased by **9.5%**, indicating structural changes in the import market Meat Import Data (H1 2025) | Indicator | Data | Year-on-Year Change | | :--- | :--- | :--- | | China's Total Meat Imports | 3.2 Million Tons | Decreased by 2.7% | | Pork Imports (excluding by-products) | 0.54 Million Tons | Increased by 4.9% | | Beef Imports (excluding by-products) | 1.3 Million Tons | Decreased by 9.5% | - Total meat imports are at a six-year low[50](index=50&type=chunk) [III. Business Review](index=19&type=section&id=%E4%B8%89%E3%80%81%20%E7%B6%93%E7%87%9F%E5%9B%9E%E9%A1%A7) This section reviews the company's operational performance across its key business segments in H1 2025, highlighting strategic initiatives, efficiency improvements, and market achievements - In H1 2025, the company maintained strategic focus, advancing key initiatives according to the 'cost leadership, technology empowerment, brand leadership, and green development' work policy[51](index=51&type=chunk) - The hog farming segment's performance reached **RMB 244 million**, a year-on-year increase of **RMB 619 million**; branded boxed fresh pork sales increased by **46.5%** year-on-year, with flaxseed pork sales increasing by **123%** year-on-year[51](index=51&type=chunk) - During the reporting period, the company's profit before fair value adjustment of biological assets was **RMB 203 million**, a year-on-year increase of **RMB 518 million**[51](index=51&type=chunk) [Hog Farming Business](index=19&type=section&id=%E7%94%9F%E8%B1%AC%E9%A4%8A%E6%AE%96%E6%A5%AD%E5%8B%99) The hog farming business reduced costs and improved efficiency through dedicated efforts, developing a 'company + farmer' model. It also vigorously developed new quality productive forces, utilizing genomic breeding technology and digital intelligent operation platforms to enhance production management, and actively practiced green development concepts, promoting integrated farming and the resource utilization of manure [Dedicated Efforts to Reduce Farming Costs](index=19&type=section&id=%E5%B0%88%E9%A0%85%E6%94%BB%E5%A0%85%E5%A3%93%E9%99%8D%E9%A4%8A%E6%AE%96%E6%88%90%E6%9C%AC) The company comprehensively reduced farming costs by improving farming efficiency, continuously implementing herd rotation, promoting efficient breeding systems, actively expanding the 'company + farmer' free-range business, and focusing on key aspects such as feed conversion ratio, feeding management, medicine and vaccine costs, and employee incentives - Improving farming efficiency, continuously carrying out herd rotation, and promoting the implementation of efficient breeding systems[52](index=52&type=chunk) - Actively expanding free-range farming business and building a COFCO-featured 'company + farmer' business model[52](index=52&type=chunk) - Focusing on specific improvements in key areas such as feed conversion ratio, feeding management, medicine and vaccine costs, and frontline employee incentives, narrowing regional disparities, and building a sustainable low-cost strategy[52](index=52&type=chunk) [Vigorously Developing New Quality Productive Forces](index=19&type=section&id=%E5%A4%A7%E5%8A%9B%E7%99%BC%E5%B1%95%E6%96%B0%E8%B3%AA%E7%94%A2%E7%94%9F%E5%8A%9B) The company relies on genomic breeding technology to increase gene chip testing, improve breeding value accuracy, and establish joint laboratories with renowned universities. Simultaneously, it develops a digital intelligent operation platform, integrates IoT smart devices, achieves precise control and risk prediction through big data analysis, and accelerates the introduction of high-end scientific research talents - Relying on genomic breeding technology, increasing the number of gene chip tests, improving breeding value accuracy, and establishing joint laboratories for hog breeding with renowned university research teams[53](index=53&type=chunk) - Developing a digital intelligent operation platform, integrating IoT smart device clusters, real-time collection of production data, dynamically optimizing feeding plans through a big data analysis platform, achieving precise control and risk prediction[53](index=53&type=chunk) - Accelerating the introduction of high-end scientific research talents, strengthening scientific research cooperation with universities such as Huazhong Agricultural University, and inviting university professors as external experts[53](index=53&type=chunk) [Vigorously Grasping Energy Saving and Environmental Protection, Focusing on Three Wastes, Steadily Advancing Dual Carbon and Energy Management, Continuously Practicing Green Development Concepts](index=20&type=section&id=%E7%8B%A0%E6%8A%93%E7%AF%80%E8%83%BD%E7%92%B0%E4%BF%9D%E5%B7%A5%E4%BD%9C%EF%BC%8C%E8%81%9A%E7%84%A6%E4%B8%89%E5%BB%A2%EF%BC%8C%E7%A9%A9%E6%AD%A5%E6%8E%A8%E9%80%B2%E9%9B%99%E7%A2%B3%E8%88%87%E8%83%BD%E6%BA%90%E7%AE%A1%E7%90%86%EF%BC%8C%E6%8C%81%E7%BA%8C%E8%B9%9B%E8%A1%8C%E7%B6%A0%E8%89%B2%E7%99%BC%E5%B1%95%E7%90%86%E5%BF%B5) The company constructs integrated farming demonstration parks tailored to local conditions, creating a low-carbon closed-loop system through waste resource utilization and cascaded energy development. Simultaneously, it collaborates with multiple universities to explore cutting-edge technologies such as low-carbon treatment of manure and biogas slurry for saline-alkali land remediation, and builds a unique ecological circular green model of 'feed production – hog farming – manure treatment – biogas power generation/heating – manure return to field – circular planting – circular aquaculture – feed raw materials' - Constructing integrated farming demonstration parks tailored to local conditions, creating a low-carbon closed-loop system from farm to table through integrated farming, waste resource utilization, and cascaded energy development[54](index=54&type=chunk) - Conducting joint research with multiple universities to explore cutting-edge technologies such as low-carbon treatment and resource utilization of farming manure, and biogas slurry for coastal saline-alkali land remediation[54](index=54&type=chunk) - Building and continuously improving a unique ecological circular green model of 'feed production – hog farming – manure treatment – biogas power generation/heating – manure return to field – circular planting – circular aquaculture – feed raw materials'[54](index=54&type=chunk) [Feed Business](index=20&type=section&id=%E9%A3%BC%E6%96%99%E6%A5%AD%E5%8B%99) The feed business deepened industrial collaboration, increasing internal synergy for pig feed and collaborating with Mengniu in the ruminant feed sector. It controlled raw material costs and improved efficiency by strengthening centralized procurement and refined management. Additionally, the establishment of a Feed Professional Committee and a Ruminant Animal Nutrition Innovation Alliance injected new momentum into R&D innovation [Deepening Industrial Collaboration and Leveraging Synergistic Advantages](index=20&type=section&id=%E6%B7%B1%E5%8C%96%E7%94%A2%E6%A5%AD%E5%8D%94%E4%BD%9C%EF%BC%8C%E7%99%BC%E6%8F%AE%E5%8D%94%E5%90%8C%E5%84%AA%E5%8B%A2) In the first half, the feed segment increased internal synergy for pig feed and further deepened collaboration with Mengniu in the ruminant feed sector, aiming to build a new 'feed-livestock-dairy' industry chain and optimize the customer structure of ranches - Internal synergy for pig feed increased in the first half[55](index=55&type=chunk) - Further deepening collaboration with Mengniu in the ruminant feed sector, building a new 'feed-livestock-dairy' industry chain, and optimizing the customer structure of ranches[55](index=55&type=chunk) [Strengthening Centralized Procurement and Adhering to Refined Management](index=20&type=section&id=%E5%BC%B7%E5%8C%96%E9%9B%86%E6%8E%A1%EF%BC%8C%E5%A0%85%E6%8C%81%E7%B2%BE%E7%B4%B0%E5%8C%96%E7%AE%A1%E7%90%86) In the first half, the feed segment significantly increased its centralized procurement ratio, analyzing market trends through a comprehensive market intelligence system and locking in positions in advance to control raw material costs. Simultaneously, it adhered to refined management, improving efficiency and reducing inventory costs through efficient联动 of technology R&D, raw material procurement, production quality control, and marketing services - Significantly increasing the centralized procurement ratio, relying on a comprehensive market intelligence system to fully analyze corn and soybean meal market trends, locking in positions in advance, and controlling feed raw material procurement costs[56](index=56&type=chunk) - Adhering to refined management, with efficient联动 of technology R&D, raw material procurement, production quality control, and marketing services, improving efficiency through high turnover and reducing inventory costs[56](index=56&type=chunk) [Establishment of Feed Professional Committee Injects New Momentum into R&D Innovation](index=20&type=section&id=%E6%88%90%E7%AB%8B%E9%A3%BC%E6%96%99%E5%B0%88%E6%A5%AD%E5%A7%94%E5%93%A1%E6%9C%83%E7%82%BA%E7%A0%94%E7%99%BC%E5%89%B5%E6%96%B0%E6%B3%A8%E5%85%A5%E6%96%B0%E5%8B%95%E8%83%BD) In April 2025, the company established a Feed Professional Management Committee, appointing academicians as academic members, focusing on cutting-edge technological breakthroughs such as raw material optimization, precise nutrition, and low-protein diets. In June 2025, it established a Ruminant Animal Nutrition Innovation Alliance, deeply collaborating with scientific research institutions to research practical new patent technologies and break through the R&D bottleneck of selenium-enriched Tan sheep meat - In April 2025, the Feed Professional Management Committee was established, appointing three academicians of the Chinese Academy of Engineering as academic members, focusing on cutting-edge technological breakthroughs in the feed industry[57](index=57&type=chunk) - In June 2025, the Ruminant Animal Nutrition Innovation Alliance was established, deeply collaborating with renowned scientific research institutions to research practical new patent technologies for ruminant nutrition and break through the R&D bottleneck of selenium-enriched Tan sheep meat[57](index=57&type=chunk) [Fresh Pork](index=21&type=section&id=%E7%94%9F%E9%AE%AE%E8%B1%AC%E8%82%89) In the first half, the fresh pork business focused on flaxseed antibiotic-free pork, strictly controlling quality with high standards, winning international taste awards, and strengthening high-end quality perception. Through in-depth expansion of supermarket and e-commerce channels, flaxseed pork sales grew rapidly by **123%** year-on-year. Brand communication focused on family users and parent-child scenarios, building a full-audience communication matrix, achieving breakthroughs in both brand value and sales growth - In the first half, fresh pork sales reached **150,000 tons**, a year-on-year increase of **25.1%**; overall fresh business revenue reached **RMB 2.54 billion**, a year-on-year increase of **21.1%**; of which branded business revenue reached **RMB 792 million**, a year-on-year increase of **41.5%**[58](index=58&type=chunk) - Branded business profitability was outstanding, driving a significant year-on-year reduction in losses for the fresh segment by **RMB 23.34 million** during the reporting period[58](index=58&type=chunk) [Quality Adherence: Building Differentiated Competitive Advantages and Strengthening High-End Quality Perception](index=21&type=section&id=%E5%93%81%E8%B3%AA%E5%A0%85%E5%AE%88%EF%BC%9A%E6%89%93%E9%80%A0%E5%B7%AE%E7%95%B0%E5%8C%96%E7%AB%B6%E7%88%AD%E5%84%AA%E5%8B%A2%EF%BC%8C%E5%BC%B7%E5%8C%96%E9%AB%98%E7%AB%AF%E5%93%81%E8%B3%AA%E8%AA%8D%E7%9F%A5) The company continuously maintains high standards to strictly control the quality of fresh pork products, building differentiated selling points with flaxseed antibiotic-free pork as the core. This product won an International Taste Award, effectively strengthening the perception of safety, deliciousness, health, and high quality - Continuously maintaining high standards to strictly control product quality and enhance product value[58](index=58&type=chunk) - With flaxseed antibiotic-free pork as the core, creating differentiated selling points; at the beginning of the year, flaxseed pork products won the International Taste Award from the International Taste Institute, strengthening the perception of safety, deliciousness, health, and high quality[58](index=58&type=chunk) [Channel Deepening: Full-Link Coverage, All-Channel Volume Expansion](index=21&type=section&id=%E6%B8%A0%E9%81%93%E6%B7%B1%E5%8C%96%EF%BC%9A%E5%85%A8%E9%8F%88%E8%B7%AF%E8%A6%86%E8%93%8B%EF%BC%8C%E5%85%A8%E6%B8%A0%E9%81%93%E6%93%B4%E5%A2%9E%E9%87%8F) In the first half, the fresh segment deeply expanded its branded channels; supermarket channels significantly increased sales by expanding coverage and adding outlets, focusing on developing renowned channels. E-commerce channels primarily promoted flaxseed antibiotic-free pork products, achieving rapid year-on-year sales growth due to stable quality and efficient supply chain - Supermarket channels expanded coverage and added outlets, adapting to the trend of traditional supermarkets shrinking and new retail and new-type supermarkets rising, focusing on developing renowned channels with demonstration effects, increasing terminal visibility, and significantly boosting sales[59](index=59&type=chunk) - E-commerce channels primarily promoted flaxseed antibiotic-free pork products, favored by consumers for their high and stable product quality, coupled with efficient supply chain cooperation ensuring stable supply, platform cooperation stickiness gradually strengthened, and flaxseed pork product sales maintained rapid year-on-year growth[59](index=59&type=chunk) [Brand Communication: Product-Centric, Precise Scenario Reach, Emotional Resonance Addressing Pain Points](index=21&type=section&id=%E5%93%81%E7%89%8C%E5%82%B3%E6%92%AD%EF%BC%9A%E7%94%A2%E5%93%81%E7%82%BA%E6%A0%B8%E7%B2%BE%E5%87%86%E5%A0%B4%E6%99%AF%E8%A7%B8%E9%81%94%EF%BC%8C%E6%83%85%E6%84%9F%E5%85%B1%E9%B3%B4%E7%9B%B4%E6%93%8A%E7%97%9B%E9%BB%9E) The brand communication strategy focused on a three-dimensional linkage of 'precise targeting, image building, and pain point resolution,' with flaxseed pork as the core, precisely targeting parent-child families in Beijing, Shanghai, Guangzhou, Shenzhen, etc., shaping an 'assured health' quality image through sports events, AI innovation competitions, and other activities, and building a full-audience communication matrix of 'DHA for children's intelligence, low-fat for fitness, and high-calcium for seniors' - The brand communication strategy focused on a three-dimensional linkage of 'precise targeting, image building, and pain point resolution,' with flaxseed pork as the core, precisely targeting family users, and linking parent-child scenarios to quality perception[60](index=60&type=chunk) - Reaching precise customer segments through sports events such as the Hundred Schools Cheerleading Competition and marathons, AI innovation competitions, leveraging endorsements from national team athletes and in-depth reports from central media to establish an 'assured health' quality image[60](index=60&type=chunk) - Deeply strengthening differentiated application scenarios for flaxseed pork, building a full-audience communication matrix of 'DHA for children's intelligence, low-fat for fitness, and high-calcium for seniors'[60](index=60&type=chunk) [Meat Products](index=22&type=section&id=%E8%82%89%E8%A3%BD%E5%93%81) In the first half, the meat products business optimized supply chain management to consolidate pork product development and innovatively expanded into beef categories. The company acquired a deep processing factory in Pinghu City, Jiaxing, Zhejiang, with an annual capacity of **9,000 tons**, and the Dongtai Phase II factory is expected to commence production by the end of 2025, significantly increasing capacity. Market expansion was driven by a 'B+C dual-wheel' strategy, with the new 'Crispy Fried Pork Chop' product gaining popularity in the Hong Kong market, achieving year-on-year sales growth - Leveraging strong supply chain management capabilities to capitalize on the integrated industry chain advantages of pork products, promoting the consolidated development of pork products; simultaneously, vigorously innovating beef products, expanding beef categories around consumption scenarios for young people, and creating differentiated selling points for beef products[62](index=62&type=chunk) - The company acquired a high-quality meat deep processing factory in Pinghu City, Jiaxing, Zhejiang, with an annual capacity of **9,000 tons**; the Dongtai Phase II factory is expected to commence production by the end of 2025, and the planned capacity for the meat products business will increase from **23,000 tons/year** to **52,000 tons/year**[62](index=62&type=chunk) - Through a 'B+C dual-wheel drive' strategy, vigorously expanding market channels, the new 'Crispy Fried Pork Chop' product fully launched in 10 'Meet Noodle' stores in Hong Kong, widely welcomed by Hong Kong consumers, with sales far exceeding expectations[62](index=62&type=chunk) - Meat product sales achieved year-on-year growth in the first half, despite the impact of rising beef prices[62](index=62&type=chunk) [Import Business](index=22&type=section&id=%E9%80%B2%E5%8F%A3%E6%A5%AD%E5%8B%99) In the first half, the import business accurately judged the volatile upward trend of beef prices, strategically planned procurement in advance, deeply cultivated downstream channels, and continuously developed valuable customers. By deepening the integration of processing and trade, it built a beef value chain, achieving counter-cyclical growth in scale - In the first half, despite a decrease in national beef import volume, the company accurately judged the volatile upward trend of beef prices, strategically planned upstream procurement in advance, and seized procurement opportunities[63](index=63&type=chunk) - Deeply cultivating downstream channels, continuously developing valuable customers; building a beef value chain, deepening the integration of processing and trade, and achieving counter-cyclical growth in scale[63](index=63&type=chunk) [IV. Financial Review](index=22&type=section&id=%E5%9B%9B%E3%80%81%20%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section provides a comprehensive review of the company's financial performance in H1 2025, covering overall results, revenue, profitability, expenses, and capital structure [Overall Performance](index=22&type=section&id=%E6%95%B4%E9%AB%94%E6%A5%AD%E7%B8%BE) In H1 2025, the company's operating revenue reached **RMB 8.963 billion**, a year-on-year increase of **RMB 1.48 billion**. Before fair value adjustment of biological assets, the company's profit for the period turned profitable, reaching **RMB 203 million**, compared to a net loss of **RMB 315 million** in the prior year Overall Financial Performance (For the Six Months Ended June 30) | Indicator | 2025 (RMB Billions) | 2024 (RMB Billions) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 8.963 | 7.483 | Increased by 1.480 | | Profit for the Period (Before Fair Value Adjustment of Biological Assets) | 0.203 | (0.315) (Loss) | Turned profitable | [Revenue](index=22&type=section&id=%E6%94%B6%E5%85%A5) In H1 2025, the company's operating revenue was **RMB 8.963 billion**, an increase of **19.8%** from **RMB 7.483 billion** in H1 2024, primarily due to stable production pace and efficiency improvements in the farming business Operating Revenue (For the Six Months Ended June 30) | Indicator | 2025 (RMB Billions) | 2024 (RMB Billions) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Operating Revenue | 8.963 | 7.483 | 19.8% | - Revenue growth was primarily attributable to stable production pace and improved production efficiency in the farming business[65](index=65&type=chunk) [Gross Profit Margin](index=22&type=section&id=%E6%AF%9B%E5%88%A9%E7%8E%87) In H1 2025, the company's gross profit margin (before fair value adjustment of biological assets) was **8.2%**, a significant year-on-year increase of **7.2 percentage points**, primarily driven by improvements in the hog farming business Gross Profit Margin (Before Fair Value Adjustment of Biological Assets, For the Six Months Ended June 30) | Indicator | 2025 | 2024 | Year-on-Year Increase | | :--- | :--- | :--- | :--- | | Gross Profit Margin | 8.2% | 1.0% | 7.2 percentage points | [Selling and Distribution Expenses / Administrative Expenses](index=23&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E5%88%86%E9%8A%B7%E6%94%AF%E5%87%BA%E2%81%84%E8%A1%8C%E6%94%BF%E6%94%AF%E5%87%BA) In H1 2025, the company's combined selling and distribution expenses and administrative expenses totaled **RMB 569 million**, an increase of **RMB 42 million** from **RMB 527 million** in the prior year Selling and Distribution Expenses / Administrative Expenses (For the Six Months Ended June 30) | Indicator | 2025 (RMB Billions) | 2024 (RMB Billions) | Year-on-Year Increase | | :--- | :--- | :--- | :--- | | Total Expenses | 0.569 | 0.527 | 0.042 | [Finance Costs](index=23&type=section&id=%E8%9E%8D%E8%B3%87%E6%88%90%E6%9C%AC) In H1 2025, the company's finance costs were **RMB 65 million**, largely consistent with **RMB 65 million** in H1 2024 Finance Costs (For the Six Months Ended June 30) | Indicator | 2025 (RMB Billions) | 2024 (RMB Billions) | | :--- | :--- | :--- | | Finance Costs | 0.065 | 0.065 | [Other Income, Other Gains and Losses](index=23&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E3%80%81%E5%85%B6%E4%BB%96%E6%94%B6%E7%9B%8A%E5%8F%8A%E虧%E6%90%8D) In H1 2025, the company's total other income, other gains and losses amounted to a gain of **RMB 145 million**, a decrease of **RMB 81 million** from H1 2024, primarily affected by dividend income and fair value of foreign currency forward contracts Total Other Income, Other Gains and Losses (For the Six Months Ended June 30) | Indicator | 2025 (RMB Billions) | 2024 (RMB Billions) | Year-on-Year Decrease | | :--- | :--- | :--- | :--- | | Total Gain | 0.145 | 0.226 | 0.081 | - The decrease was mainly affected by dividend income and fair value of foreign currency forward contracts[69](index=69&type=chunk) [Profit / (Loss) for the Period](index=23&type=section&id=%E6%9C%9F%E5%85%A7%E6%BA%A2%E5%88%A9%E2%81%84%EF%BC%88%E虧%E6%90%8D%EF%BC%89) In H1 2025, the company recorded a net profit of **RMB 203 million** before fair value adjustment of biological assets, compared to a net loss of **RMB 315 million** in H1 2024, achieving a significant turnaround to profitability Profit / (Loss) for the Period (Before Fair Value Adjustment of Biological Assets, For the Six Months Ended June 30) | Indicator | 2025 (RMB Billions) | 2024 (RMB Billions) | | :--- | :--- | :--- | | Net Profit / (Loss) | 0.203 | (0.315) | [Significant Investments Held, Material Acquisitions and Disposals of Subsidiaries](index=23&type=section&id=%E6%8C%81%E6%9C%89%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) In H1 2025, the company held no significant investments and there were no material acquisitions or disposals of subsidiaries - In H1 2025, the Group held no significant investments or made any material acquisitions or disposals of subsidiaries[71](index=71&type=chunk) [Capital Resources Analysis](index=23&type=section&id=%E8%B3%87%E6%9C%AC%E8%B3%87%E6%BA%90%E5%88%86%E6%9E%90) The company adheres to a prudent financial policy, expanding financing channels and strengthening bank cooperation to ensure liquidity. Through centralized fund management and hedging exchange rate risks, it optimizes fund utilization. Despite a decrease in cash and bank balances, unused bank financing facilities are ample, EBITDA and operating cash flow significantly improved, but interest-bearing bank borrowings and net debt increased [Liquidity and Financial Policy](index=24&type=section&id=%E6%B5%81%E5%8B%95%E6%80%A7%E5%8F%8A%E8%B2%A1%E5%8B%99%E6%94%BF%E7%AD%96) The company adheres to a prudent financial policy, ensuring liquidity by expanding financing channels and strengthening bank cooperation. Internally, it implements centralized management of surplus funds to improve inventory and trade receivables turnover efficiency. The company optimizes fund utilization through financial service agreements and cash pools, and uses currency forward contracts to hedge exchange rate risks - Adhering to a prudent financial policy, committed to expanding financing channels, strengthening financing capabilities, and enhancing cooperation with banks to obtain sufficient credit facilities, ensuring liquidity[72](index=72&type=chunk) - Internally implementing centralized management of surplus funds to improve inventory and trade receivables turnover efficiency and cash flow generation capability[72](index=72&type=chunk) - Entering into financial service agreements and entrusted loan framework agreements with COFCO Finance Co., Ltd., and simultaneously utilizing cash pools in mainland China to more effectively use cash, reduce the Group's average borrowing costs, and accelerate inter-company settlement services within the Group[72](index=72&type=chunk) - Closely monitoring exchange rate fluctuations and appropriately using currency forward contracts to hedge most exchange rate risks[72](index=72&type=chunk) Liquidity Indicators (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Bank Balances (RMB Billions) | 0.636 | 1.064 | | Current Ratio | 0.72 | 0.75 | | Unused Bank Financing Facilities (RMB Billions) | 9.897 | N/A | [EBITDA and Cash Flow](index=24&type=section&id=EBITDA%E5%8F%8A%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F) In H1 2025, the company's EBITDA (before fair value adjustment of biological assets) significantly increased to **RMB 834 million**, and cash flow from operating activities turned positive to **RMB 106 million**. Cash used in investing activities increased, mainly for the purchase of property, plant and equipment, and cash from financing activities also significantly increased EBITDA and Cash Flow (For the Six Months Ended June 30) | Indicator | 2025 (RMB Billions) | 2024 (RMB Billions) | | :--- | :--- | :--- | | EBITDA (Before Fair Value Adjustment of Biological Assets) | 0.834 | 0.245 | | EBITDA (After Fair Value Adjustment of Biological Assets) | 0.811 | 0.793 | | Cash from Operating Activities | 0.106 | (0.513) (Used) | | Cash Used in Investing Activities | 2.452 | 0.552 | | Cash from Financing Activities | 1.927 | 0.273 | | Net Decrease in Cash and Bank Balances | 0.428 | N/A | - Cash used in investing activities included the purchase of property, plant and equipment of **RMB 939 million** (H1 2024: **RMB 527 million**)[75](index=75&type=chunk) [Capital Structure](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) As of June 30, 2025, the total number of issued shares of the company remained unchanged. Total interest-bearing bank borrowings and loans from related parties significantly increased, leading to a rise in net debt and net debt to equity ratio - As of June 30, 2025, the total number of issued shares of the company was **4,581,998,323 shares**[76](index=76&type=chunk) Interest-Bearing Bank Borrowings (As of June 30) | Term | 2025 (RMB Millions) | 2024 (RMB Millions) | | :--- | :--- | :--- | | Within one year | 6,190 | 2,609 | | One to two years | 536 | 1,048 | | Two to five years | 615 | 389 | | Over five years | 210 | 185 | | **Total** | **7,551** | **4,231** | Interest-Bearing Bank Borrowings by Interest Rate Type (As of June 30) | Type | 2025 (RMB Millions) | 2024 (RMB Millions) | | :--- | :--- | :--- | | Fixed Rate Borrowings | 4,626 | 2,494 | | Floating Rate Borrowings | 2,925 | 1,737 | | **Total** | **7,551** | **4,231** | Net Debt and Net Debt to Equity Ratio (As of June 30) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Assets (RMB Billions) | 9.917 | 9.593 | | Net Debt (RMB Billions) | 7.516 | 5.066 | | Net Debt to Equity Ratio | 75.8% | 52.8% | [Capital Expenditure](index=26&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) In H1 2025, the company's capital expenditure was **RMB 942 million**, a significant increase from **RMB 565 million** in the prior year, primarily for the construction of hog farms and other production and supporting facilities, especially the continued construction of hog farms in Jilin Province Capital Expenditure (For the Six Months Ended June 30) | Item | 2025 (RMB Millions) | 2024 (RMB Millions) | | :--- | :--- | :--- | | Payments for Property, Plant and Equipment | 939 | 527 | | Payments for Right-of-Use Assets | 2 | 35 | | Payments for Intangible Assets | 1 | 3 | | **Total** | **942** | **565** | - Capital expenditure was primarily for the construction of hog farms and other production and supporting facilities, especially the continued construction of hog farms in Jilin Province[83](index=83&type=chunk) [Capital Commitments](index=26&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94) As of June 30, 2025, the company's capital commitments were **RMB 1.563 billion**, a slight increase from the end of 2024, mainly related to the construction of hog farms and other production and supporting facilities Capital Commitments (As of June 30) | Indicator | June 30, 2025 (RMB Billions) | December 31, 2024 (RMB Billions) | | :--- | :--- | :--- | | Capital Commitments | 1.563 | 1.551 | - Capital commitments are mainly related to the construction of hog farms and other production and supporting facilities[84](index=84&type=chunk) [Biological Assets](index=26&type=section&id=%E7%94%9F%E7%89%A9%E8%B3%87%E7%94%A2) As of June 30, 2025, the company's fair value of biological assets was **RMB 3.702 billion**, an increase from the end of 2024. Changes in the fair value of biological assets significantly impacted cost of sales and profit, with the net impact of fair value adjustments on profit for the current period being a gain of **RMB 119 million** Fair Value of Biological Assets (As of June 30) | Indicator | June 30, 2025 (RMB Billions) | December 31, 2024 (RMB Billions) | | :--- | :--- | :--- | | Fair Value of Biological Assets | 3.702 | 3.309 | - Changes in the fair value of biological assets resulted in an adjustment to cost of sales, increasing cost of sales by **RMB 536 million** in the current period, compared to a decrease of **RMB 103 million** in the prior year[86](index=86&type=chunk) - Gains from fair value less costs to sell of agricultural produce at the point of harvest were **RMB 311 million** (H1 2024: loss of **RMB 48 million**)[86](index=86&type=chunk) - Overall, the net impact of fair value adjustments of biological assets on profit for the current period was a gain of **RMB 119 million** (H1 2024: gain of **RMB 638 million**)[86](index=86&type=chunk) [V. Human Resources](index=27&type=section&id=%E4%BA%94%E3%80%81%20%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90) As of June 30, 2025, the company's total headcount increased to **14,243 employees**, with total remuneration growing year-on-year, and the company is committed to enhancing employee knowledge and skills through continuous training and development Human Resources Overview (As of June 30) | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total Employees | 14,243 Employees | 12,075 Employees | | Total Remuneration (For the Six Months Ended June 30, RMB Billions) | 0.980 | 0.847 | - The company provides employees with basic social insurance and housing provident fund as required by Chinese law, and encourages employees to enhance their comprehensive career development and knowledge and skills through continuous training courses, seminars, and online learning[87](index=87&type=chunk) [VI. Material Risks and Uncertainties](index=27&type=section&id=%E5%85%AD%E3%80%81%20%E9%87%8D%E5%A4%A7%E9%A2%A8%E9%9A%AA%E5%8F%8A%E4%B8%8D%E7%A2%BA%E5%AE%9A%E6%80%A7) The Group faces multiple material risks and uncertainties, including epidemic diseases, market competition, food safety, production safety, and environmental protection, which may directly or indirectly affect its performance and business operations - The Group's performance and business operations are affected by numerous risks and uncertainties directly or indirectly related to its business, with major risks including epidemic disease risk, market competition and market change risk, food safety risk, production safety risk, and environmental protection risk[88](index=88&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) [Epidemic Disease Risk](index=27&type=section&id=%E7%96%AB%E7%97%85%E9%A2%A8%E9%9A%AA) The livestock industry faces epidemic disease risks such as African Swine Fever and Porcine Reproductive and Respiratory Syndrome, which may lead to hog deaths, reduced output, decreased production efficiency, increased costs, and even impact consumer demand. The company has formulated multiple biosafety control and emergency plans to enhance epidemic prevention and control capabilities - Epidemic disease risks include hog deaths, reduced output, decreased production efficiency, increased feed and veterinary medicine consumption, higher operating costs, phased production cuts, and decreased demand due to consumer panic[88](index=88&type=chunk) - The company has formulated systems such as 'Biosafety Control Procedures,' 'Emergency Plan for Major Animal Epidemics,' and 'African Swine Fever Prevention and Emergency Response Plan' to comprehensively prevent and control major animal epidemics[89](index=89&type=chunk) - Enhancing veterinary laboratory testing capabilities, optimizing epidemic prevention and control measures, and establishing an African Swine Fever prevention and control team to improve professional capabilities in epidemic handling[89](index=89&type=chunk) [Market C

Group 1 - The core viewpoint of the articles highlights the current challenges in the pig farming industry, including an oversupply of pigs leading to a decline in prices, prompting government intervention to stabilize the market [1][2][3] - The National Development and Reform Commission has observed a drop in the national average pig-to-grain price ratio to below 6:1, entering a warning zone, which has led to plans for central frozen pork reserves [1][2] - The Ministry of Agriculture and Rural Affairs is implementing measures to reduce the breeding sow population by approximately 1 million to control production and stabilize prices, with effects expected in about 10 months [1][2][3] Group 2 - Major pig farming companies are responding to government policies by reducing the number of breeding sows and controlling the weight of pigs at slaughter, with companies like Muyuan, Wens, and New Hope reporting a decrease in average slaughter weights [3][4] - Sales data from July shows mixed results, with some companies experiencing a decline in sales volume while others saw slight increases in average selling prices [3][4] - The overall trend in the industry indicates a cautious approach to production, with companies adjusting their strategies to align with government directives aimed at stabilizing the market [3][4] Group 3 - The industry is expected to face significant supply pressure in the latter half of 2025, with a potential increase in pig prices as low-efficiency production capacity is phased out [5] - Recent reports indicate that the average price of pigs has decreased to 13.55 yuan per kilogram, reflecting ongoing supply challenges and weak demand [5] - Companies like DeKang Agriculture and COFCO Jiajia Kang have reported their sales figures, with DeKang selling 780,200 pigs in July and COFCO reporting 427,000 pigs, indicating the scale of operations in the current market [6]

Core Viewpoint - The recent increase in pork supply due to seasonal factors and prior pig fattening has led to a slight decline in pig prices, prompting the government to implement measures to stabilize the market [1][2]. Industry Overview - The National Development and Reform Commission has reported that the average pig-to-grain price ratio has fallen below 6:1, entering a warning zone, which has led to the decision to store frozen pork to stabilize prices [1]. - The Ministry of Agriculture and Rural Affairs has indicated that the current pig production capacity is temporarily high, necessitating a reduction of approximately 1 million breeding sows to prevent significant price fluctuations [2][3]. Production Adjustments - The industry is responding to government guidance by reducing the number of breeding sows, which directly impacts the supply of market pigs in the following months [2][3]. - Major companies are adjusting their production strategies, with some reporting a decrease in average slaughter weights and sales volumes in July [3][4]. Sales and Pricing Trends - In July, leading companies such as Muyuan, Wens Foodstuffs, and New Hope reported average sales prices for pigs ranging from 14.30 to 14.58 CNY/kg, with slight month-on-month increases [3]. - However, the sales volume for these companies showed a mixed trend, with some experiencing declines in the number of pigs sold compared to previous months [3][4]. Future Outlook - Analysts predict that the supply of pigs will tighten in the coming quarters, potentially leading to an upward adjustment in pork prices as the industry works through excess capacity [5]. - The impact of current policies is expected to manifest more significantly in 2026, with a potential increase in the price baseline for pork [5]. Company Performance - Dekang Agriculture reported sales of 780,200 pigs in July 2025, with a revenue of 1.427 billion CNY, while the average selling price for pork decreased slightly from the previous month [6]. - COFCO Joycome announced a total of 427,000 pigs sold in June 2025, with a cumulative total of 2.898 million pigs for the year, indicating a stable performance in the fresh pork market [6]. - WH Group's projected core net profits for 2025 and 2026 are estimated at 1.614 and 1.683 billion USD, respectively, with a target price of 8.56 HKD per share, suggesting a favorable outlook for the company [6].

Group 1 - Zhongliang Jiajia Kang (01610) saw a stock price increase of over 6%, currently up 6.63% at HKD 1.93, with a trading volume of HKD 47.69 million [1] - The company will hold a board meeting on August 25 to consider and approve its interim results for the six months ending June 30, 2025 [1] - The significant performance increase of "pig king" Muyuan Foods, which reported a revenue of CNY 76.463 billion for the first half of the year, represents a year-on-year growth of 34.46%, with net profit soaring by 1169.77% to CNY 10.53 billion [1] Group 2 - The major factors contributing to Muyuan Foods' performance include an increase in pig sales volume compared to the same period last year and a decrease in pig farming costs [1]