Affected by the fluctuations in the pig market prices, MUYUAN expects its net profit in 2025 to decrease by 14.93%–20.21% year-on-year

China's leading pig farming company MUYUAN expects a significant decline in net profit for the full year of 2025, mainly due to a sharp drop in pig sales prices compared to the previous year, despite the company's achievements in controlling production costs. According to the announcement released by the company on January 15, MUYUAN expects to achieve a net profit of 15.1 billion to 16.1 billion yuan for the fiscal year 2025. This forecast range indicates a decline of 14.93% to 20.21% compared to the same period last year, when the company recorded a net profit of 18.925 billion yuan. The main reason for the performance pressure is the fluctuation in the pig market. The announcement shows that the average selling price of commercial pigs for the entire year of 2025 is expected to be around 13.5 yuan/kg, a decrease of about 17.3% compared to the same period last year. This price trend directly undermines the company's overall profitability, offsetting the benefits brought by improved management efficiency. In terms of shareholder return indicators, the net profit attributable to shareholders of the listed company is expected to be between 14.7 billion and 15.7 billion yuan, with a year-on-year decline of 12.20% to 17.79%. The basic earnings per share for 2025 are expected to be between 2.73 yuan and 2.93 yuan, lower than the 3.3 yuan recorded in the same period last year. Price Decline Offsets Cost Benefits Despite facing challenges from a downward price cycle, MUYUAN stated in the announcement that the company has continuously strengthened the health management and production management of pigs in 2025. By improving the level of refined management, the production performance has improved, and the cost of pig farming has decreased compared to the same period last year. However, the optimization on the cost side has not fully offset the negative impact of falling sales prices. The average selling price of commercial pigs at around 13.5 yuan/kg for the year has significantly retreated compared to last year, leading to a decline in the company's overall profitability compared to the previous year. Changes in Core Financial Indicators Comparing to the same period last year, MUYUAN's net profit attributable to the parent company for 2024 was 17.881 billion yuan. After deducting non-recurring gains and losses, the company expects a net profit of 15.1 billion to 16.1 billion yuan for 2025, a decrease of 14.12% to 19.45% compared to the 18.747 billion yuan recorded in the same period last year. The company stated that this performance forecast is the result of preliminary calculations by the finance department, and the specific data will be subject to the audited annual report for 2025. The company has communicated with the accounting firm regarding this performance forecast, and there are no significant discrepancies between the two parties on the performance forecast. Warning of Industry Cyclical Risks The board of directors of MUYUAN specifically highlighted the systemic risks facing the industry in the announcement. The announcement pointed out that significant fluctuations in pig market prices have a major impact on operating performance, and if the pig market prices decline sharply in the future, it may still lead to a decline in the company's performance. In addition, animal epidemics are listed as one of the main risks in the livestock industry. The company emphasized that changes in pig prices are a systemic risk for the entire pig production industry, which is an objective and uncontrollable external risk for any pig producer, and advised investors to make cautious decisions