On 10 29, Muyuan Foods released its third-quarter report for 2026. The report showed that in the first three quarters, Muyuan Foods sold 5,873 ten thousand commercial pigs and slaughtered 2,583 ten thousand pigs; it recorded operating revenue of 922.00 hundred million yuan, monetary funds of 228.88 hundred million yuan, net cash flow from operating activities of 29.83 hundred million yuan, and an asset-liability ratio of 55.89%. Affected by the industry cycle, the year-on-year selling price of live pigs fell substantially, and the company’s net profit attributable to shareholders of the parent company was -93.19 hundred million yuan.
Although the industry is currently at a cyclical bottoming-out stage, Muyuan Foods is finding certainty amid uncertainty and continuing to strengthen its operational management. The full cost of pig farming continues to fall, the slaughtering and meat business continues to improve, and its overseas expansion is progressing steadily, fully demonstrating its resilience in navigating industry cycles and its long-term growth potential.
【Deepening internal efforts to reduce costs and building a foundation to withstand industry cycles】
In the face of external uncertainty, Muyuan stated, “We must respect the cycle, not bet on it, look inward and to ourselves, and continuously tap into cost-saving potential.” The company continues to focus on ongoing innovation and implementation in core technologies such as pig breeding, nutritional formulation, health management, and intelligent technologies. It continues to tap into the potential to reduce breeding costs, improve production efficiency, and lower breeding costs, using the certainty of its own development to respond to uncertainty in the external market and strengthen its core capabilities for navigating the cycle.
Thanks to ongoing innovation and R&D, as well as support from operational management, the company’s production indicators have continued to improve. The full cost of pig farming fell from 12 yuan/kg at the beginning of the year to slightly below 11.5 yuan/kg in 9. According to publicly available data, depreciation and amortization and other non-cash costs account for around 10% of Muyuan’s cost structure. On this basis, Muyuan’s latest cash cost is 10.3 yuan/kg, enhancing its ability to withstand risks at the bottom of the cycle.
[Slaughtering and meat products become a source of profit growth, highlighting the advantages of industry-chain coordination]
The slaughtering and meat products business has continued to maintain steady growth and stable profitability.
Data shows that in the first half of 2026, Muyuan Foods slaughtered 1723.4 ten thousand pigs, up 50.98% year over year; revenue was 220.61 hundred million yuan, up 14.04% compared with the same period of the previous year. From 2026 1-9, it slaughtered 2583 ten thousand pigs, up 34.8% year over year. After first achieving an annual profit in 2025, it remained profitable in 2026, with operating performance continuing to improve.
More important than contributing to profit growth, the slaughtering and meat processing business can create synergies with the hog farming business. The slaughtering end can accurately capture consumers’ quality requirements and market changes, guiding the farming end to conduct hog breeding and production based on market demand. Coordinated management of farming and slaughtering generates synergies, thereby increasing product value and providing consumers with a wider variety of high-quality pork.
[Actively Responding to Capacity Regulation Policies and Building a Healthy Ecosystem for Hog Farming Together]
While maintaining steady operations, Muyuan actively responds to national policy guidance, upholds industry self-discipline, and proactively optimizes its capacity structure. As of the end of 9 month, the number of breeding sows had been reduced from a peak of 362 ten thousand to 297 ten thousand, a total reduction of 65 ten thousand head, helping promote the healthy development of the industry.
“Building a better ecosystem for pig farming” also means proactively reducing production capacity. Muyuan Foods has developed a “large pig-farming model” based on more than 30 years of accumulated farming data and experience. At a smart farming open day jointly held with the Central Agricultural Broadcasting and Television School, the model was made openly available to the entire industry. It can serve every pig farmer, providing professional guidance and technical support in production so farmers can preserve cash during downturns and save money during peaks.
At the same time, to promote the sustainable development of the farming industry, Muyuan Foods is actively fostering a sound environmental ecosystem. It has assembled a professional team of nearly 7000 people focused on pig-farming ecology. The team works to ensure that pig farming is pollution-free, free of hidden risks and odors, and does not disturb local residents. All pig manure and urine generated in the farming process are put to resource use and returned to nearby farmland, with nothing wasted. The team supports 492 ten thousand mu of farmland and, over nearly 8 years, has helped farmers reduce inputs and increase income by 70 hundred million yuan. This achieves the goal of “pig farmers contributing to the ecosystem and raising pigs with dignity.”
[Global expansion steadily accelerates, with continued exploration of diversified development paths]
In terms of overseas development, since its Hong Kong stock market listing in 2026, 2, Muyuan Foods has steadily accelerated its global expansion. In the first half of 2026, Muyuan Foods’ overseas business generated operating revenue of 4080.63 ten thousand yuan. The smart farm jointly established with Vietnam’s BAF company is now officially in operation.
Drawing on years of accumulated, proven farming technology, management systems, and full-industry-chain experience, the company has expanded from providing asset-light services to operating jointly with local enterprises and establishing production capacity locally. It provides overseas customers with comprehensive farming solutions covering the design of multi-story pig farms, smart equipment, biosecurity, and environmental management.
At the same time, Muyuan Foods has assembled a professional overseas expansion team and continues to conduct market research and explore business models in Vietnam, the Philippines, and other countries and regions.
Muyuan Foods’ disclosed third-quarter report shows that, during the industry’s bottoming-out cycle, the company has reinforced its core business by continuously identifying opportunities to reduce costs and extending its integrated operations into slaughtering. Meanwhile, steady overseas market development and the open sharing of industry technologies are also creating new opportunities for Muyuan Foods’ long-term growth.