We are a technology-driven leading pork company, pioneering smart hog farming. With over 30 years of deep-rooted expertise, we have become a leader in the hog farming industry adopting a vertically-integrated business model that spans the entire hog value chain, which includes hog breeding, hog farming, feed production, slaughtering and meat production. According to Frost & Sullivan, since 2021, we have ranked first globally in the hog farming industry in terms of production capacity and sales volume of hogs for four consecutive years. Our global market share, measured by sales volume of hogs, increased from 2.6% in 2021 to 5.6% in 2024, exceeding the total of the players ranked second to fourth in 2024. While continuing to solidify our leadership in the hog farming industry, since 2019, we have strategically entered the hog slaughtering and processing industry to enhance our integrated business model. According to Frost & Sullivan, we ranked fifth globally and first in China in the hog slaughtering and processing industry in terms of slaughter volume in 2024, and our slaughtering and meat product business reported the highest revenue CAGR from 2021 to 2024 among large-scale hog slaughtering and processing companies in China.
Our Technology and Innovation
Technology is the cornerstone of our business. As a pioneer in smart hog farming, we have consistently rolled out new technologies in biosecurity, odor control, environmentally sustainable operations and cost management, tackling industry pain points, enhancing operational efficiency, optimizing cost structures, and generating lasting social value.
– In 2000, we initiated R&D into optimized soybean meal feed formulations, aimed at lowering production costs and mitigating supply chain risks.
– In 2002, we pioneered the two-breed rotational cross system, establishing our independent breeding system.
– In 2008, we applied the integrated crop-livestock system in our operations, advancing environmental sustainability and resource efficiency.
– In 2011, we initiated digitalization in our operations, improving management efficiency.
– In 2012, we launched disease elimination initiatives leveraging proprietary R&D and technological innovation, developing biosecurity solutions to continuously enhance production performance.
– In 2013, we established our pathology laboratories to strengthen diagnostic capabilities, enabling efficient and accurate disease detection.
– In 2017, we fully completed the digitalization in our operations, continually enhancing management efficiency.
– In 2019, we comprehensively upgraded our biosecurity management, equipping all hog houses with our proprietary environment control system, which incorporates air-filtration, sterilization, separate ventilation and deodorization features.
– In 2019, we comprehensively upgraded our smart operating systems, including the feeding system, hog house environment control system, and hog health management system, setting industry benchmarks for smart hog farming.
– In 2021, we established a platform dedicated to big data-related research and development, accelerating our smart hog farming innovations.
– In 2021, we shared our optimized soybean meal feed formulations with the industry, which were endorsed by the MARA as a strategic move to address the key challenges in the hog farming industry, including soybean meal reliance and nitrogen emission.
– In 2024, we commercialized ammonia reduction and deodorization solutions for livestock farming, which were promoted by the PRC Ministry of Ecology and Environment.
Through our proprietary innovations, we have solidified our leadership within the industry while delivering exceptional financial performance.
From 2014 to 2024, we achieved industry-leading revenue growth with a CAGR of 48.7%, the highest among the top ten global listed pork companies by sales volume. Leveraging our industry-leading technologies and cost-management capabilities, we have achieved robust profitability. During the same period, our net profit increased at a CAGR of 72.7% and our average annual net profit margin reached 19.0%. Notably, we are the only company to sustain an average annual net profit margin of above 15.0% from 2014 to 2024 among the top ten global listed pork companies by sales volume. From 2014 to 2024, our EBITDA (non-CASBE measure) also increased at a CAGR of 60.2%, with an average EBITDA margin (non-CASBE measure) of 30.8%, outperforming other large-scale listed companies in China’s hog farming industry.
In addition to the growth in revenue and profit, we have consistently maintained a robust cash flow position. Our continued and long-term investments in capital have gradually transferred to strong cash flow generation capability. In 2022, 2023, 2024 and the nine months ended September 30, 2024 and 2025, we recorded net cash inflow from operating activities of RMB23,010.6 million, RMB9,892.8 million, RMB37,543.1 million, RMB29,177.9 million and RMB28,579.5 million, respectively. From 2022 to 2024, our accumulated net cash inflow from operating activities was 1.6 times of our accumulated capital expenditure (which represents payment for acquisition of fix assets, intangible assets and other long-term assets), and in 2024 alone, our net cash inflow from operating activities was 3.0 times of our capital expenditure. In the nine months ended September 30, 2025, our net cash inflow from operating activities reached 3.9 times of our capital expenditure. Our profitability and asset utilization have enabled industry-leading returns with an average ROE per annum of 22.5% from 2014 to 2024, outperforming the second-ranked listed peer in China who recorded an average ROE per annum of 15.7% during the same period. We value the long-term trust of our shareholders and have consistently returned capital to shareholders through dividends. The aggregate dividends our Company declared attributable to the years ended December 31, 2022, 2023, 2024 and the nine months ended September 30, 2025 were RMB16.6 billion.
Source: Muyuan Foods (02714) Prospectus (IPO Date : 2026/01/29) |