Leading pork producer Muyuan Foods Co. Ltd. (2714.HK; 002714.SZ) announced on Tuesday that it sold approximately 7.14 million finished hogs in April, up 8.68% year-on-year. But falling prices caused the company’s revenue from finished hog sales for the month to fall 32.49% year-on-year to about 8.5 billion yuan ($1.25 billion).
The company said the average selling price of finished hogs during the month was about 9.45 yuan per kilogram, down 35.54% from a year earlier, mainly due to fluctuations in the hog market.
In the first four months of the year, Muyuan sold 25.51 million finished hogs, generating revenue of about 34.08 billion yuan. From March to April alone, the average selling price fell further from 9.91 yuan per kilogram to 9.45 yuan.
The company’s wholly owned Muyuan Meat Products Co. Ltd. subsidiary slaughtered a total of nearly 3 million hogs during the period. The company also warned that declining hog prices and animal disease outbreaks could materially affect its operating results.
The company’s stock opened flat on Thursday, closing at HK$41.96 by the midday break, up 1.5%. The stock is up about 8% from its Hong Kong IPO price of HK$39 in February.
By Lee Shih Ta
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