Core Viewpoint - New Hope Liuhe Co., Ltd. reported significant growth in revenue and profit for the first half of 2025, driven by its feed and pig farming businesses, despite a decline in domestic pig prices compared to the previous year [2][3]. Financial Performance - In the first half of 2025, New Hope achieved operating revenue of 51.625 billion yuan, a year-on-year increase of 4.13% [2]. - The net profit attributable to shareholders reached 755 million yuan, marking a 162% increase and a turnaround from losses [2]. Business Segments - The feed business generated operating revenue of 35.479 billion yuan, up 7.88%, with total feed sales reaching 13.93 million tons, an increase of 13% [2]. - In pig farming and slaughtering, New Hope sold 2.0566 million piglets and 6.3928 million fattened pigs, totaling 8.4494 million pigs, with revenue of 10.801 billion yuan from sales and 3.568 billion yuan from slaughtering [2]. Market Conditions - Domestic pig prices have decreased compared to the same period last year, averaging around 14 yuan per kilogram [3]. - The average number of weaned piglets per sow increased to 11.2, and the average PSY (pigs weaned per sow per year) rose to 25.4, indicating improved productivity [3]. Cost Management and Technology - The average weaning cost per pig was approximately 260 yuan, down by 30 yuan from the end of the previous year [3]. - The company is enhancing production efficiency through digitalization and smart technology, aiming to reduce the cost of fattened pigs to below 13 yuan per kilogram in the second half of the year [4].

Group 1 - The company reported a revenue of 51.625 billion yuan for the first half of the year, representing a year-on-year increase of 4.13%, and a net profit of 755 million yuan, up 162% year-on-year [1] - In the feed business, total sales volume reached 13.93 million tons, a year-on-year increase of 13%, with export feed sales of 11.48 million tons, up 16% [1] - The company implemented measures to manage raw material procurement effectively, including strategic partnerships with suppliers and optimizing raw material costs, resulting in a reduction of production costs by approximately 30 yuan per ton [1] Group 2 - The company sold a total of 844.94 thousand pigs, generating revenue of 10.801 billion yuan, with an average PSY of 25.4, which is industry-leading [2] - The company is advancing digitalization and automation in its operations, with increased coverage of smart equipment and the launch of an AI assistant for pig farming [2] - In the slaughtering business, the company processed 1.6442 million pigs, achieving revenue of 3.568 billion yuan, and developed a linkage capability between breeding and slaughtering [2] Group 3 - The domestic animal husbandry industry is transitioning into a low-level operational phase in 2025, following a cyclical recovery in 2024, with a downward adjustment in the number of breeding sows expected [3] - The high pig prices in mid-2024 led to an increase in the number of breeding sows and pigs, but the subsequent price decline at the end of the year curbed further industry expansion [3]