On August 13, Wan Zhou International Limited (Shuanghui International Holdings Limited) released its financial report for the first half of this year, showing a 16.4% year-on-year decrease in revenue from its pork business in China, leading to an overall revenue reduction of 6.3% to $12.29 billion.
The financial performance, unaudited, for the six months ended June 30, 2024, was disclosed by Wan Zhou International on August 13. The report reveals that the sales volumes of meat products and pork decreased by 6.0% and 10.0% respectively compared to the same period last year. Due to weakened consumer demand, revenue from the pork business in China saw a 16.4% decline year-on-year, dragging down the company’s total revenue to $12.29 billion, a decrease of 6.3%.
According to news from Caixin on August 13, Wan Zhou International’s operations primarily involve the production and sale of packaged meat products, pork business including pig farming and slaughter, as well as other operations such as poultry production and logistics supply chain. The meat products, as the core business, contributed 52.8% of the revenue and 99.7% of the operating profit in the first half of 2024. However, the sales volume of meat products in China decreased by 9.9% year-on-year, leading to a 13.4% drop in revenue contribution.
Overall, Wan Zhou International’s half-year total operating income was RMB 27.672 billion, a 9.3% decrease from the same period in 2023. Net profit was RMB 2.331 billion, down by 18.8% compared to the same period in 2023.
China has always been the world’s largest producer and consumer market of pork. As the main meat consumption product in China, the price fluctuations of pork have always been of concern. Ma Xiangjie, Executive Director and CEO of Shuanghui Development of Wan Zhou International, told Caixin that according to the company’s market research analysis, it is expected that the average pork price in the second half of the year will be higher than the first half but trending downward. The average pork price for the whole year is projected to be higher than 2023, but by early 2025, the pork price will significantly decline. Ma Xiangjie anticipates that pork consumption in the second half of the year will be better than the first half, but due to high pork prices, the Chinese market demand remains insufficient.