Yuehai Feeds Group(SZ:001313) Zheng Quan Zhi Xing·2025-06-13 02:15Core Viewpoint - The company, Yuehai Feed, is facing significant challenges in its financial performance due to a prolonged downturn in the aquaculture market, leading to a substantial decline in revenue and profits, despite efforts to expand its market presence through initiatives like the "Victory Summer Action" [1][2][3]. Financial Performance - Yuehai Feed's revenue peaked at 7.092 billion yuan in 2022 but has since shown signs of fatigue, with revenue growth slowing from 15.08% to 5.45%, and net profit declining by 38.44% year-on-year [2]. - In 2023 and 2024, the company reported revenues of 6.872 billion yuan and 5.912 billion yuan, respectively, representing year-on-year declines of 3.10% and 13.98% [3]. - For 2024, Yuehai Feed recorded its first annual loss in nearly a decade, with a net profit loss of 85.39 million yuan, a dramatic drop of 307.55% compared to a profit of 41.14 million yuan in the previous year [3]. Market Conditions - The aquaculture market has been adversely affected by extreme weather and diseases, leading to a persistent downturn in demand for aquaculture products [3][4]. - The company's receivables reached 1.148 billion yuan and inventory stood at 688.8 million yuan by the end of 2024, accounting for 56.6% of its current assets, complicating cash flow [4]. Business Segments - Yuehai Feed's two main business segments, aquaculture feed and animal health products, have both been declining, with aquaculture feed accounting for over 95% of total revenue [5]. - In 2024, the aquaculture feed segment generated 5.673 billion yuan, down 13.93% year-on-year, marking the second consecutive year of revenue decline [6]. - The animal health products segment saw even steeper declines, with revenue falling by 41.2% to 67.86 million yuan in 2024 [6]. Regional Performance - The company's primary revenue sources, the South China and East China regions, also experienced declines, with South China generating 4.245 billion yuan (down 10.47%) and East China 1.091 billion yuan (down 24.12%) in 2024 [6]. Investment Projects - The company's performance has been further impacted by delays in the execution of IPO fundraising projects, with two key projects experiencing significant delays and underperformance [8][9]. - The projects, aimed at increasing production capacity and enhancing competitiveness, have seen their completion dates pushed back to August 2025, with one project only 67.39% complete by the end of 2024 [8][9]. - The two completed projects reported disappointing results in 2024, with one project incurring a loss of 2.042 million yuan and the other generating a modest profit of 734,300 yuan [11].