Wens Food Group Limited (Wenshi Shares) stated on April 22, 2025 that the company had seen a 1.67% year-on-year decrease in operating income in 2025, with a non-GAAP net profit of 4.955 billion yuan, a decrease of 48.24% year-on-year. Meanwhile, another listed pig company, Mu Yuan Shares, also reported a net loss of 1.215 billion yuan in the first quarter of this year. This indicates that farming enterprises are facing significant challenges in the context of continuously declining pig prices in China.
In its “2025 Annual Report,” Wenshi Shares stated, “The company achieved a total operating revenue of 103.862 billion yuan, a decrease of 1.69% year-on-year, with a total profit of 5.598 billion yuan, a decrease of 42.02% year-on-year; the net profit attributable to shareholders of the listed company was 5.266 billion yuan, a decrease of 43.25% year-on-year.”
As the situation continued into 2026, Wenshi Shares’ operating condition did not show signs of improvement. According to the “2026 First Quarter Report” released by Wenshi Shares on April 22, “the net profit attributable to shareholders of the listed company incurred a loss of 1,070,082,952.75 yuan, a decrease of 153.15% year-on-year; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses recorded a loss of 1,165,631,859.24 yuan, a decrease of 160.89% year-on-year.”
Similarly, Mu Yuan Food Co., Ltd. (Mu Yuan Shares), in its “2026 First Quarter Report” released on April 22, stated, “Operating income was 29.893 billion yuan, down 17.10% year-on-year from 36.061 billion yuan in 2024; the net profit attributable to shareholders of the listed company incurred a loss of 1.214 billion yuan, down 127.05% year-on-year from 4.491 billion yuan in 2024; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses recorded a loss of 1.141 billion yuan, down 125.32% year-on-year from 4.509 billion yuan in 2024.” This demonstrates a shift from profit to loss for the company year-on-year, with operating cash flow from core business activities also declining by 112.26%.
Wenshi Shares explained the reasons for the losses in the annual report by stating, “The overall market situation for live pigs has been in a downturn,” with “the average selling price of live pigs of the company dropping by 17.95% year-on-year, and significant drops in prices of related live pigs, resulting in a year-on-year decrease in profit for the live pig breeding business.”
Mu Yuan Shares also remarked, “The net profit for this period decreased by 126.46% compared to the same period last year, mainly due to the decrease in live pig prices and resulting revenue reduction.”
The decline in live pig prices has directly led to losses for pig enterprises. According to a report by “Jiemian News” on April 21, the loss per pig sold ranged from 300 to 500 yuan, a situation that has persisted for six months.
In April, the average price of imported three-yuan live pigs in China fell to 8.67 yuan/kg, a decrease of over 41% year-on-year, with some regions dropping below 8 yuan/kg, the lowest point since June 2010. Since the turning point in prices in October 2025, the breeding sector has not escaped the shadow of losses. Currently, for a standard 130 kg pig, breeders have to bear a loss of 350 to 500 yuan per head.
Furthermore, the feed-to-pig ratio has dropped to 3.44:1, well below the breakeven line of 6:1, with the return on feed costs now less than sixty percent, a more severe situation than the cycle low in 2018. At present, from sow breeding to piglet fattening, each stage has fallen into a state of all-around contraction.
Feng Yonghui, a Chinese agronomist and live pig market analyst, analyzed, “The continual increase in PSY (the number of weaned piglets that each sow can provide per year, an important indicator of breeding efficiency and sow reproductive performance, directly determining the economic benefits of pig farms) – particularly among leading enterprises – is systematically lowering breeding costs. The better the production performance, the smaller the extent of losses actually incurred.”
Feng Yonghui believes that there is a change occurring in the traditional cyclic operation rules of the industry. The chain of “losses – rapid capacity reduction – strong rebound” in the past has been broken, with the characteristic of this current pig cycle being not “deep falls,” but rather “prolonged grinding.”