Muyuan Foods (SZ:002714) Zheng Quan Shi Bao Wang·2025-08-21 10:45Core Viewpoint - The company is actively pursuing international expansion and cost reduction strategies, with significant growth in revenue and profit reported for the first half of 2025, while also responding to domestic production capacity adjustments in the pig farming industry [1][2][3][4]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 76.463 billion yuan, a year-on-year increase of 34.46% - Net profit reached 10.79 billion yuan, reflecting a substantial year-on-year increase of 952.92% - The net cash flow from operating activities was 17.351 billion yuan, up 12.13% compared to the same period last year [1]. International Expansion - The company has established a wholly-owned subsidiary in Ho Chi Minh City, Vietnam, as part of its internationalization strategy - The company submitted an application for H-share issuance on the Hong Kong Stock Exchange in May 2025, marking a significant step in its global strategy - The funds raised will primarily be used for global expansion and research and development, rather than for increasing domestic production capacity [1][2]. Overseas Market Strategy - The company is leveraging its successful domestic breeding techniques to enhance biosecurity and disease prevention in overseas markets, particularly in Vietnam - An overseas business team has been formed to explore various international business models, including light-asset approaches and potential acquisitions [2]. Domestic Market Adjustments - The company is actively reducing its breeding sow inventory in response to national production capacity regulations, with plans to decrease from 3.621 million to 3.3 million by the end of 2025 - This reduction aligns with national goals to stabilize the total breeding sow population at around 39.5 million [3][4]. Cost Management - The company's breeding costs have decreased from 13.1 yuan/kg to 11.8 yuan/kg from January to July 2025, with some facilities achieving costs below 11 yuan/kg - The target for average breeding costs for the year is set at 12 yuan/kg, with a goal to reduce it to 11 yuan/kg by year-end [5].