Muyuan submits the 2025 report: net profit down 13%, Chairman Qin Yinglin's salary increased for the second consecutive year

Ask AI · How Muyuan Overcame Headwinds with Cost Control to Grow Against the Trend During the Pork Price Winter?

Muyuan, the “pork Mao” (pig-breeding leader),’s annual report was officially released during the “winter” of the hog cycle.

On the evening of March 27, Muyuan Co., Ltd. (002714.SZ /02714.HK), a leading hog breeding company, released its 2025 annual report. According to the annual report, during the reporting period, the company achieved total operating revenue of RMB 144.145 billion, up 4.49% year over year; and net profit attributable to shareholders was RMB 15.487 billion, down 13.39% year over year.

Since mid-September 2025, pork prices have rapidly fallen below the industry cost line. As of now, according to China Hog Farming Network, the national hog price has dropped to around RMB 10 per kg, approaching a ten-year low, and the whole industry has fallen into a deep adjustment.

Judging from the annual report, against the backdrop of overall pressure in the industry, Muyuan demonstrates a certain degree of operating resilience by leveraging cost control, adjusting its business structure, and expanding into overseas markets. However, in terms of profitability, it has inevitably been hit by the downward move in hog prices.

As Pork Prices Fall, Annual Performance Shows “Revenue Growth but No Profit Growth”

Muyuan Tries Out Its “Three-Board Axes”

In 2025, the hog breeding industry went through a long “bottoming-out” phase. Data show that hog prices fell from over RMB 16 per kg in January 2025 to around RMB 12 per kg at year-end. Industry insiders point out that severe supply-demand imbalance is the core contradiction of this cycle. The inventory of sows continues to stay at a high level, causing hog marketings to be released in concentrated batches, which in turn drags down pork prices.

In this industry winter, for the year-on-year growth of 4.49% in revenue, Muyuan Co., Ltd. said that it mainly came from the rapid volume expansion of its slaughter and meat processing business, as well as the steady increase in hog marketings. During the reporting period, the company sold 77.981 million head of market hogs, up 8.91% year over year, and its market share further increased to about 10.8%.

However, the drop in pork prices severely worsened breeding profits. In 2025, Muyuan Co., Ltd.’s full-year net profit attributable to shareholders decreased 13.39% year over year, putting it in a “revenue growth but no profit growth” predicament.

In response to the industry cycle, a reporter from Nandu · Wan Caish is noted that in 2025 Muyuan deployed its “three-board axes.” On one hand, it continued to deepen cost control; on the other hand, it further strengthened coordination across the industrial chain and achieved profitability in the slaughter and meat processing business. At the same time, it also tried to open up new markets by going overseas.

In terms of cost control, in 2025 Muyuan reduced the fully allocated cost of hog breeding to RMB 12 per kg, down about RMB 2 per kg from last year, with a significant reduction. Muyuan stated that the cost of its internal “excellent farm lines” has even been controlled below RMB 11 per kg. Muyuan’s Chief Financial Officer, Gao Tong, said that this achievement was due to the company’s continued investment in disease prevention and control, nutrition formulations, breeding of breeding stock, and intelligent equipment, among other areas.

Second, the slaughter and meat processing business achieved annual profitability for the first time. In 2025, Muyuan achieved operating revenue of RMB 45.228 billion in this business, up 86.32% year over year; it slaughtered 28.663 million head of hogs, with capacity utilization as high as 98.8%. Muyuan said that this business achieved profit in consecutive quarters in the third and fourth quarters, which helped turn the full year from loss to profit.

In addition, Muyuan is also trying to open up new markets through going overseas. In 2025, Muyuan sought a listing on the Hong Kong Stock Exchange. In February 2026, Muyuan successfully listed on the Hong Kong Stock Exchange, becoming the first domestic hog breeding company with an “A+H” dual listing.

At the same time, in 2025, Muyuan reached cooperation agreements in sequence with Vietnam’s BAF company and Thailand’s Charoen Pokphand Group, focusing on entering the Southeast Asian market. Company executives at the results conference clearly stated that the 2026 target is to implement overseas owned capacity, and currently it is based in Vietnam. Related capital expenditures are expected to be within RMB 1 billion.

Total Liabilities Decreased by More Than RMB 17.1 Billion from the Start of the Year

Chairman Qin Yinglin Got a Pay Raise for the Second Consecutive Year

In terms of the financial structure, at the end of 2025, Muyuan’s asset-liability ratio fell to 54.15%, down 4.53 percentage points from the start of the year; total liabilities decreased by more than RMB 17.1 billion from the start of the year, exceeding the target to reduce leverage.

Meanwhile, the company’s net cash flow from operating activities reached RMB 30.056 billion, down 19.94% year over year. Of this, the cash outflow from operating activities increased 14.39% year over year; regarding this, Muyuan said it was mainly due to an increase in cash paid for purchasing goods and accepting services.

For the future industry trend, market analysis generally believes that pressure will still remain in the short term, but a turning point is likely to appear in the second half of the year. Based on the rule that supply of hogs is affected by the inventory of sows for about 10 months, the acceleration in capacity de-stocking that began in the third quarter of 2025 is expected to be reflected in the second half of 2026. Many institutions predict that in the third quarter of 2026, hog prices may show signs of warming, and that for the full year, hog prices may follow a pattern of low at first and then higher.

Muyuan previously said it will adhere to a strategy of “not betting on cycles and not guessing prices,” and continue to rely on its cost and management capabilities to get through the cycle. In the March 28 investor relations activity record, Muyuan stated that its 2026 operating plan is to sell 75 million to 81 million head of market hogs, similar in scale to 2025; as for pricing, it will still strive to keep the full-year average cost below RMB 11.5 per kg.

Worth noting is that regarding executive compensation, during the reporting period, the total pre-tax remuneration received by Muyuan’s directors and senior management from the company was RMB 42.0393 million. Of this, the chairman, Qin Yinglin, had a total pre-tax remuneration of RMB 41.581 million. Combined with his compensation of RMB 2.35 million and RMB 3.7219 million in 2023 and 2024 respectively, it shows that Qin Yinglin has received a pay raise for the second consecutive year.

Written by: Liu Changyuan, reporter from Nandu · Wan Caish