After China’s leading pig farming company, Muyuan Co., announced a loss, Wen’s Co., another major player in the agricultural and animal husbandry industry, unveiled its annual report for 2023 and the first-quarter report for 2024 on April 28. Wen’s Co. suffered a loss of about 6.4 billion yuan last year and continued to face losses in the first quarter of this year.
According to the annual report, in 2023, Wen’s Co. recorded a net loss of 6.39 billion yuan, a 220.81% decrease compared to the previous year. Its non-GAAP net loss was 6.452 billion yuan, down 229.91% year-on-year.
In the first quarter of this year, Wen’s Co. reported a net loss attributable to shareholders of 1.236 billion yuan, compared to a loss of 2.749 billion yuan in the same period last year. Non-GAAP net loss was 1.052 billion yuan, compared to 2.783 billion yuan in the same period last year.
Amid insufficient consumption, China’s agricultural and animal products prices have seen a significant decline. To make matters worse, the prices of animal feed have surged in recent years, leading to a substantial increase in the overall production costs of pig farming.
Data shows that the Chinese pig farming industry was generally in a sustained loss state last year.
Muyuan Co., the leader in China’s pig farming industry, released its financial report on April 26, indicating a net loss of over 2.3 billion yuan in the first quarter of this year and a net loss of over 4.2 billion yuan in 2023.
Additionally, New Hope Group, another pig farming enterprise, suffered a net loss of 1.203 billion yuan in 2023.
While pig farming enterprises are enduring significant losses, the performance of listed companies in the broiler chicken farming sector also faced challenges in 2023. Among 8 listed broiler chicken farming companies, 5 were in a state of losses.
For instance, Lihua Group reported a net loss of 437 million yuan in 2023, while Minhe Group had a net loss of approximately 386 million yuan in the same year.