On 10 22, Wens Foodstuff Group (300498.SZ) released its third-quarter report for 2026. It recorded a net loss attributable to shareholders of the parent company of 49.61 billion yuan in the first three quarters, compared with a profit of 52.56 billion yuan in the same period last year. The company said that a sharp drop in hogpriceshad resulted in a substantial loss in its hog-farming business.
In the third quarter alone, Wens recorded a net loss attributable to shareholders of the parent company of 5.96 billion yuan, narrower than in the second quarter. However, hog prices remained low into the fourth quarter. Leading pig producers, including Muyuan Foods, Wens and New Hope, successively adjusted their production capacity; it will still take time for pressure from industry supply to ease.pricesremained low.
Losses in the first three quarters approached 50 billion yuan, and operating cash flow turned negative
In the first three quarters of this year, Wens achieved revenue of 721.97 billion yuan, down 4.74% year on year; net loss attributable to the parent company excluding non-recurring items was 49.99 billion yuan, compared with a profit of 48.89 billion yuan in the same period last year. Revenue in the third quarter alone was 254.50 billion yuan, down 1.88% year on year, with a net loss attributable to the parent company excluding non-recurring items of 5.20 billion yuan.
Quarterly trends show that losses were mainly concentrated in the first half of the year. Based on calculations from the company’s first-quarter, half-year, and third-quarter reports, net losses attributable to the parent company in the first and second quarters were 10.70 billion yuan and 32.96 billion yuan, respectively. The loss in the third quarter narrowed by about 27 billion yuan compared with the second quarter, but the company still did not achieve a profit.
Monthly sales reports show how pig prices affected revenue. In 1 this year, Wens’s average selling price for live pigs was 12.75 yuan/kg, falling to 9.27 yuan/kg in 4. In 7, 8, and 9, it rebounded to 10.80 yuan, 10.86 yuan, and 10.75 yuan/kg, respectively, above the levels in each month of the second quarter. However, in 9, it was still down 18.44% year on year.
In the first three quarters, the company sold a cumulative 2651.17 ten thousand pigs for meat, generating revenue of 353.94 billion yuan. In 9, it sold 298.83 ten thousand pigs for meat, generating revenue of 40.56 billion yuan. Monthlylive pig priceshad rebounded from the low point for the year, but remained well below their level at the start of the year.
During the same period, prices for products in Wens’s other main business recovered. From 7 to 9, the average selling price for live chickens rose from 11.49 yuan/kg to 14.20 yuan/kg, and monthly broiler sales revenue increased from 27.21 billion yuan to 37.31 billion yuan. In the first three quarters, the company’s cumulative broiler sales revenue was 260.01 billion yuan.
Amid ongoing losses, operating cash flow is also under pressure. In the first three quarters, net cash flow from operating activities was -4893.81 ten thousand yuan, compared with 81.99 hundred million yuan in the same period last year. The company explained that this was mainly due to hogpricesfalling year over year, while raw material prices rose year over year.
To cope with the industry downturn, Wens increased its bank borrowings. At the end of the third quarter, the company’s short-term borrowings had risen from 7455.52 ten thousand yuan at the end of the previous year to 46.33 hundred million yuan, while long-term borrowings had risen from 8.80 hundred million yuan to 74.83 hundred million yuan. Its debt-to-asset ratio had risen from 49.82% at the end of the previous year to 59.15%.
At the same time, the company is also increasing its cash reserves. At the end of the third quarter, Wens had 27.51 hundred million yuan in monetary funds, up 171.44% from the end of the previous year. In the first three quarters, net cash flow from financing activities was 58.66 hundred million yuan.
Leading hog producers adjust capacity, but supply remains relatively ample
In 10 month, hog prices came under renewed pressure. According to data from Shengyishe, the benchmark price for live hogs on 10 month 22 was 9.87 yuan/kg, down 3.24% from 10.20 yuan/kg at the beginning of the month.
Against a backdrop of low prices, leading hog producers have taken action by reducing sow numbers, phasing out inefficient capacity, and adjusting shipment schedules. A review by a Blue Whale News reporter of company announcements and public responses found that Muyuan, Wens, and New Hope have taken different approaches and are at different stages of adjustment.
Muyuan Foods’ sales brief shows that the company’s breeding sow inventory fell from 6 month-end at 311.3 ten thousand head to 9 month-end at 297.4 ten thousand head. Based on this, the number fell by 13.9 ten thousand head in the third quarter, a decline of about 4.47%. However, supply continued to be released on the commercial hog sales side: sales in 9 totaled 642.3 ten thousand head, up 15.24% year on year.
Wens Foodstuff Group stated in a reply on the investor interaction platform on 8 3 that its capacity adjustments involve both the breeding herd and pig farms:Breeding stockOn the breeding stock side, it is culling low-efficiency animals and improving herd quality; on the pig farm side, it is orderly exiting low-efficiency farms and concentrating resources in advantaged regions and efficient capacity. The company also said it would maintain balanced, planned hog sales and strictly control the sales channels for commercial hogs, not selling them to customers for secondary fattening.
New Hope, meanwhile, adjusted its full-year sales plan. At an investor meeting on 8 31, the company said it would respond to capacity-control policies and reduce its sales volume in 2026 compared with 2025, to approximately 1600 ten thousand head for the year. At the same time, it would continue to lower costs through health management, production management, and breeding improvements.
While leading hog producers are reducing capacity, the industry’s underlying production capacity is also contracting. The National Bureau of Statistics reported that, at the end of the third quarter, the national breeding sow inventory stood at 3602 ten thousand head, down 433 ten thousand head year on year, or 10.7%. The decline widened by 4.2 percentage points from the second quarter, bringing the inventory to 96% of the normal holding level of 3750 ten thousand head. However, the reduction in sows has not yet translated into a concurrent decline in pork supply for the current period. In the first three quarters, national hog slaughter totaled 53739 ten thousand head, up 1.4% year on year; pork output was 4508 ten thousand tonnes, up 3.2%.
For the fourth-quarter market, Zhuochuang Information expects average monthly hog prices to follow a “fall—rise—fall” pattern. Improving demand in 11 and some farmers delaying sales may support a price rebound. Although 12 marks the peak season for cured meat, factors such as the release of heavier hogs and year-end sales by large groups may cause supply growth to exceed demand growth, limiting price performance.
In the third quarter alone, Wens recorded a net loss attributable to shareholders of the parent company of 5.96 billion yuan, narrower than in the second quarter. However, hog prices remained low into the fourth quarter. Leading pig producers, including Muyuan Foods, Wens and New Hope, successively adjusted their production capacity; it will still take time for pressure from industry supply to ease.pricesremained low.
Losses in the first three quarters approached 50 billion yuan, and operating cash flow turned negative
In the first three quarters of this year, Wens achieved revenue of 721.97 billion yuan, down 4.74% year on year; net loss attributable to the parent company excluding non-recurring items was 49.99 billion yuan, compared with a profit of 48.89 billion yuan in the same period last year. Revenue in the third quarter alone was 254.50 billion yuan, down 1.88% year on year, with a net loss attributable to the parent company excluding non-recurring items of 5.20 billion yuan.
Quarterly trends show that losses were mainly concentrated in the first half of the year. Based on calculations from the company’s first-quarter, half-year, and third-quarter reports, net losses attributable to the parent company in the first and second quarters were 10.70 billion yuan and 32.96 billion yuan, respectively. The loss in the third quarter narrowed by about 27 billion yuan compared with the second quarter, but the company still did not achieve a profit.
Monthly sales reports show how pig prices affected revenue. In 1 this year, Wens’s average selling price for live pigs was 12.75 yuan/kg, falling to 9.27 yuan/kg in 4. In 7, 8, and 9, it rebounded to 10.80 yuan, 10.86 yuan, and 10.75 yuan/kg, respectively, above the levels in each month of the second quarter. However, in 9, it was still down 18.44% year on year.
In the first three quarters, the company sold a cumulative 2651.17 ten thousand pigs for meat, generating revenue of 353.94 billion yuan. In 9, it sold 298.83 ten thousand pigs for meat, generating revenue of 40.56 billion yuan. Monthlylive pig priceshad rebounded from the low point for the year, but remained well below their level at the start of the year.
During the same period, prices for products in Wens’s other main business recovered. From 7 to 9, the average selling price for live chickens rose from 11.49 yuan/kg to 14.20 yuan/kg, and monthly broiler sales revenue increased from 27.21 billion yuan to 37.31 billion yuan. In the first three quarters, the company’s cumulative broiler sales revenue was 260.01 billion yuan.
Amid ongoing losses, operating cash flow is also under pressure. In the first three quarters, net cash flow from operating activities was -4893.81 ten thousand yuan, compared with 81.99 hundred million yuan in the same period last year. The company explained that this was mainly due to hogpricesfalling year over year, while raw material prices rose year over year.
To cope with the industry downturn, Wens increased its bank borrowings. At the end of the third quarter, the company’s short-term borrowings had risen from 7455.52 ten thousand yuan at the end of the previous year to 46.33 hundred million yuan, while long-term borrowings had risen from 8.80 hundred million yuan to 74.83 hundred million yuan. Its debt-to-asset ratio had risen from 49.82% at the end of the previous year to 59.15%.
At the same time, the company is also increasing its cash reserves. At the end of the third quarter, Wens had 27.51 hundred million yuan in monetary funds, up 171.44% from the end of the previous year. In the first three quarters, net cash flow from financing activities was 58.66 hundred million yuan.
Leading hog producers adjust capacity, but supply remains relatively ample
In 10 month, hog prices came under renewed pressure. According to data from Shengyishe, the benchmark price for live hogs on 10 month 22 was 9.87 yuan/kg, down 3.24% from 10.20 yuan/kg at the beginning of the month.
Against a backdrop of low prices, leading hog producers have taken action by reducing sow numbers, phasing out inefficient capacity, and adjusting shipment schedules. A review by a Blue Whale News reporter of company announcements and public responses found that Muyuan, Wens, and New Hope have taken different approaches and are at different stages of adjustment.
Muyuan Foods’ sales brief shows that the company’s breeding sow inventory fell from 6 month-end at 311.3 ten thousand head to 9 month-end at 297.4 ten thousand head. Based on this, the number fell by 13.9 ten thousand head in the third quarter, a decline of about 4.47%. However, supply continued to be released on the commercial hog sales side: sales in 9 totaled 642.3 ten thousand head, up 15.24% year on year.
Wens Foodstuff Group stated in a reply on the investor interaction platform on 8 3 that its capacity adjustments involve both the breeding herd and pig farms:Breeding stockOn the breeding stock side, it is culling low-efficiency animals and improving herd quality; on the pig farm side, it is orderly exiting low-efficiency farms and concentrating resources in advantaged regions and efficient capacity. The company also said it would maintain balanced, planned hog sales and strictly control the sales channels for commercial hogs, not selling them to customers for secondary fattening.
New Hope, meanwhile, adjusted its full-year sales plan. At an investor meeting on 8 31, the company said it would respond to capacity-control policies and reduce its sales volume in 2026 compared with 2025, to approximately 1600 ten thousand head for the year. At the same time, it would continue to lower costs through health management, production management, and breeding improvements.
While leading hog producers are reducing capacity, the industry’s underlying production capacity is also contracting. The National Bureau of Statistics reported that, at the end of the third quarter, the national breeding sow inventory stood at 3602 ten thousand head, down 433 ten thousand head year on year, or 10.7%. The decline widened by 4.2 percentage points from the second quarter, bringing the inventory to 96% of the normal holding level of 3750 ten thousand head. However, the reduction in sows has not yet translated into a concurrent decline in pork supply for the current period. In the first three quarters, national hog slaughter totaled 53739 ten thousand head, up 1.4% year on year; pork output was 4508 ten thousand tonnes, up 3.2%.
For the fourth-quarter market, Zhuochuang Information expects average monthly hog prices to follow a “fall—rise—fall” pattern. Improving demand in 11 and some farmers delaying sales may support a price rebound. Although 12 marks the peak season for cured meat, factors such as the release of heavier hogs and year-end sales by large groups may cause supply growth to exceed demand growth, limiting price performance.