Muyuan Foods (SZ:002714) Zheng Quan Shi Bao Wang·2025-08-21 03:22Core Insights - The company, Muyuan Foods, reported strong financial performance in the first half of 2025, with revenue of 76.463 billion yuan, a year-on-year increase of 34.46%, and a net profit of 10.79 billion yuan, up 952.92% [1][2] - The company has successfully reduced production costs to below 11 yuan per kilogram, enhancing its profitability despite a general decline in the domestic pig farming industry's profit margins [3][4] Financial Performance - Muyuan Foods achieved a net cash flow from operating activities of 17.351 billion yuan, a 12.13% increase compared to the same period last year [1] - The company plans to maintain an average cost target of 12 yuan per kilogram for the year, aiming to reduce it to 11 yuan by year-end [3] - The company announced a cash dividend of 9.32 yuan per 10 shares, totaling 5.002 billion yuan, which represents 47.5% of its net profit for the first half of 2025 [8][10] Cost Management - The company has improved its cost control capabilities, with production costs decreasing from 13.1 yuan per kilogram in January to 11.8 yuan in July [3] - The company is focusing on integrating internal resources to help underperforming production lines improve their performance and reduce costs [3] Breeding and Health Management - Muyuan Foods is advancing its breeding program, focusing on improving reproductive and growth performance while reducing costs [4] - The company is committed to enhancing health management and disease control to improve the overall health of its pig population [4] International Expansion - Muyuan Foods is actively pursuing international expansion, particularly in Southeast Asia, with a focus on Vietnam, where pork demand is high [5][6] - The company has established a wholly-owned subsidiary in Vietnam and is providing technical services to local partners to enhance biosecurity and production levels [5][6] - Future international business strategies may include new capacity construction and targeted mergers and acquisitions [7] Debt Management - As of the end of Q2 2025, the company's debt-to-asset ratio was 56.06%, a decrease of 3.14 percentage points from the previous quarter [9] - The company aims to reduce its overall debt by 10 billion yuan, having already achieved a reduction of 5.6 billion yuan by mid-year [9]