Beijing News (Reporter Wang Siyang) On January 31, Muyuan Co., Ltd. disclosed investor activity records, saying that the company's average complete cost of pig breeding in 2023 decreased by 07 kg to 15 kg. The utilization rate of slaughtering capacity increased to 46%, and the average loss level of heads shrank to about 70 yuan. For the whole year, it is expected that the overall performance of pig prices in 2024 will be more optimistic than in 2023. The company's capital reserves are sufficient, and the capital expenditure in 2024 is expected to be around 8 billion yuan.
On January 30, Muyuan Co., Ltd. released a performance forecast for 2023, with an estimated net profit loss of 3.8 billion yuan to 4.6 billion yuan, and a net profit loss of 3.9 billion yuan to 4.7 billion yuan attributable to the parent company, mainly due to the sharp decline in pig **, and the company intends to make impairment provisions for some consumable biological assets.
In the evening, Muyuan Co., Ltd. held a ** meeting to introduce that the company will sell 6381 live pigs in 202360,000 heads. The average complete cost of pig breeding throughout the year was about 15 yuan, a year-on-year decrease of 07 yuan kg. At the end of December 2023, the number of fertile sows was 31290,000 heads, corresponding to the expected growth of about 10% in 2024.
In the slaughtering meat sector, in 2023, Muyuan will slaughter 13.26 million live pigs, a year-on-year increase of 80%, and the capacity utilization rate will increase from 25% to 46%, but there is still a certain gap with the ideal capacity utilization rate. Due to the short production time of some plants, the slaughtering meat business has not yet achieved profitability, but the average loss level has dropped from about 120 yuan in 2022 to about 70 yuan in 2023.
Muyuan shares pointed out that the recent pig price has regional characteristics, mainly due to short-term supply and demand changes before the holiday. Throughout the year, on the supply side, the current breeding sows are still at a high level, but the overall trend is declining, and the number of live pigs in 2024 is expected to be lower than that in 2023; On the demand side, with the gradual stabilization of the economy, the demand is expected to rise to a certain extent, and the overall performance of pig prices in 2024 is expected to be more optimistic than in 2023.
In terms of capital expenditure, Muyuan's annual capital expenditure in 2023 will be 16 billion yuan to 17 billion yuan, of which the slaughtering part will be about 800 million yuan. In 2024, the capital expenditure is expected to be about 8 billion yuan, of which the slaughterhouse construction expenditure is expected to be about 700 million yuan, and the maintenance and upgrading of fixed assets is expected to be 2 billion yuan to 3 billion yuan. Muyuan said that the company's current capital reserves are sufficient, and it also maintains a stable cooperative relationship with banks on the financing side, which can ensure the safety and stability of cash flow.
Edited by Zhu Fenglan.
Proofreading by Jun Liu.