MakiharaShares asHogsIt is no accident that important enterprises in the breeding industry are mired in the predicament of the pig cycle. HogsAs a cyclical industry, aquaculture experiences a cycle of cyclical and fluctuating cycles. Every 3 to 4 years or so, domesticHogsThe industry will go through a round of changes in the pig cycle. And the conversion of each round of the pig cycle revolves around the fluctuation of ** and ** volume. When pork ***, the sow herd increases, resulting in:Hogs**Increase, eventually make pork *** and with pork *** a large number of sows are eliminated from the market, resulting inHogs**Decrease, pork **again**. According to statistics, since 2006, the country has experienced four complete pig cycles. The most recent round of the pig cycle began in 2019, due to the impact of African swine fever, domesticHogsThe number of breeding sows continued to decline, and the imbalance between supply and demand made pig prices skyrocket, from less than 10 yuan jin ** to a maximum of nearly 40 yuan jin.
This sudden pig price ** makesHogsBreeding has become extremely popular, and major enterprises have poured into the pig industry. In the face of this opportunity, not only a large number of real estate companies have crossed over into the pig industry, but alsoMakiharaPig giants such as shares are also expanding at an accelerated pace. Take slaughter volume as an example, in 2020MakiharaThe number of shares sold jumped to 22.45 million from 12 million in the previous year, and reached 40.68 million in 2021 and 61.2 million in 2022. However, since the second half of 2021,Hogs** Began to fall sharply. Despite this, many companies have not stopped expanding their production capacityMakiharaThe same goes for shares. MakiharaThe stock seeks to challenge the volatility of the pig cycle through scale and strict control of costs. On this basis,MakiharaThe shares were still profitable in 2021 and 2022, while other pig companies posted huge losses.
However, due to the inevitability of the pig cycle, in the face of continued low pig prices,MakiharaEventually, the shares suffered losses. This can be said to be the inevitable result of the pig cycle.
MakiharaThe huge loss disclosed by the stock in the 2023 performance forecast has attracted widespread attention in the market. According to estimates,MakiharaThe company's net profit in 2023 will be a loss of 3.8 billion yuan to 4.6 billion yuan, compared with a profit of 149 percent in the same period last yearCompared with 3.3 billion yuan, there was a situation of profit turning into a loss. This is tooMakiharaFor the first time since the listing of the shares, there was a performance loss.
For this loss,MakiharaThe shares explained that it was mainly due to the reporting periodHogs**Significant decline. The impact of African swine fever in 2019 caused pork to skyrocket, but the subsequent increase in pork prices led to a pullback. MakiharaIn this context, the shares accelerated their expansion, but did not adjust their business strategies in time, resulting in the inability to achieve profitability in the case of continuous pig prices, resulting in this huge loss.
In addition to the problem of losses,MakiharaShares are also facing huge liabilities. According to the latest financial report data, as of the latest financial report,MakiharaThe total liabilities of the shares are as high as 113 billion yuanShort-term borrowingUp to 4533.4 billion yuan, while monetary funds are only 1576.3 billion yuan. The high level of debt and the existence of a funding gap make it possibleMakiharaThe cash flow of the shares is facing serious challenges.
In the face of continued low pig prices and huge losses and debts,MakiharaShares are facing great challenges. AlthoughMakiharaThe shares have always pursued the model of integrated farming and have been relatively successfully controlledProduction costs, but in the grim situation at the bottom of the pig cycle, this model has also become inadequate.
In order to alleviate the financial pressure,MakiharaShares had to borrow heavily. According to the latest announcement, the balance of borrowings in 2023 reached 7799.8 billion yuan, compared to 592 at the end of 20229.5 billion yuan, an increase of 1870.3 billion yuan. In addition,MakiharaShares are also planned to be issued through superShort-term financing bills, medium-termBillsand applying to financial institutionsLine of creditand financing loans. However, the continued low pig price has exacerbated the scale of debtMakiharaDebt pressure on shares. At the same time,MakiharaThe shares are also trying to increase revenues and reduce costs by developing new energy businesses and changing farming models to cope with the current predicament.
However, forMakiharaAs far as shares are concerned, it will not be easy to get out of the current predicament. Persistently depressed pig prices and growing debt problems have made it possibleMakiharaThe cash flow of the shares is facing significant challenges. Unless the business strategy can be adjusted in time to adapt to the changes in the pig cycleMakiharaShares will struggle to survive the current predicament.