NEW HOPE(SZ:000876)2024-09-02 15:36Financial Performance - In Q2, the company achieved a net profit of 720 million CNY, while the overall net profit for the first half was -1.2 billion CNY [4] - The feed industry reported a profit of 330 million CNY in Q2, significantly improving from 130 million CNY in Q1 [4] - The pig farming sector generated a profit of 350 million CNY in Q2, recovering from substantial losses in Q1 [4] Feed Industry Overview - The company's feed sales volume decreased by 34% in the first half, with total feed sales reaching 1,238 million tons [4] - The external sales of pig feed were 196 million tons, while aquatic feed sales were 699 million tons, showing a year-on-year increase of 11% [4] - Overseas feed sales reached 257 million tons, marking a 16% increase year-on-year, with profits up by 50% [5] Cost Management - The company reported a decrease in headquarters expenses by 450 million CNY in Q2 compared to Q1, and over 200 million CNY year-on-year [5] - The cost of raising pigs in Q2 was approximately 14.6 CNY per kilogram, with expectations for a reduction to below 14 CNY per kilogram by December [6] - The company aims to improve operational efficiency and reduce costs through various measures, including enhancing production line utilization [6] Market Conditions - The overall feed market saw a 4% decline in sales volume in the first half, influenced by market conditions and competition [8] - The company anticipates that the competitive environment in the feed market will improve in the coming months through internal adjustments [8] - The pig farming sector is expected to maintain a stable price level, with the company focusing on cost control and operational management [10] Future Outlook - The company plans to maintain its feed sales targets for the year, aiming for stability compared to the previous year [5] - There are ongoing efforts to enhance production capabilities and address market challenges, particularly in the northern regions affected by disease outbreaks [6] - The company is optimistic about achieving profitability in the upcoming quarters, driven by improved cost management and operational strategies [10]