On the evening of 10 30, New Wellful disclosed its third-quarter report: in the first three quarters of 2026, it recorded operating revenue of 43.16 billion yuan, down 19.92% year on year; its net loss attributable to shareholders of the listed company was 13.05 billion yuan, and its net loss excluding non-recurring items was 13.13 billion yuan. The losses were mainly due to persistently low hog selling prices.

 

Just over five months earlier, the company’s shareholders’ meeting had passed a resolution to use 15.48 billion yuan from the capital reserve to offset the parent company’s accumulated losses. As of 2026 year 9 month 30, the company’s total assets were 98.68 billion yuan, and equity attributable to shareholders of the listed company was 8.36 billion yuan, down 61.37% from the end of the previous year. The accumulated losses had only just been cleared, and new losses have now consumed six tenths of net assets.

 

As for liabilities, at the end of 9 month, the company’s total liabilities were 88.79 billion yuan, and its debt-to-asset ratio was 89.98%. Lease liabilities were 41.53 billion yuan, accounting for 46.8% of total liabilities; long-term borrowings increased from 8.78 billion yuan to 16.69 billion yuan. Net cash flow from operating activities in the first three quarters was -6.07 billion yuan.

 

 

On 10 month 29, XWFS announced that the issuance of the first perpetual medium-term note for the 2026 year was successfully completed. The issue size was 4 hundred million yuan, with a term of 3+N years and a coupon rate of 2.35%. From registration approval to successful issuance took only 20 days, efficiently achieving a one-off, low-cost equity financing.

 

XWFS is the only state-controlled listed company under the Hunan State-owned Assets Supervision and Administration Commission whose primary business is the pig industry. Its controlling shareholder, Hunan Agricultural Group, has an AAA entity credit rating, and the shareholder’s strong credit profile provides a solid foundation for the company’s financing.

 

This medium-term note was issued during a trough in the pig industry. The company efficiently completed the issuance of a medium- to long-term bond worth 4 hundred million yuan, reflecting interbank market investors’ recognition of the company’s credit quality, risk management capabilities, and long-term value.

 

This recognition is supported by a set of concurrent facts: costs are continuing to decline. The company’s fully loaded cost per hog sold has fallen by approximately 35% cumulatively since 2021, with an average annual compound decline of approximately 8%. The interim report shows that in the first half of 2026, bulk-material procurement savings of approximately 4000 ten thousand yuan were achieved through forward-month price locking and the use of alternative materials, while overall vaccine and medicine costs declined by more than 5%. The management structure was streamlined from four levels to three, and management expenses fell by 21.60% year on year. Production capacity is being actively optimized. The number of breeding sows was optimized from 24.93 ten thousand head at the end of 2025 to 22.09 ten thousand head at the end of month 6 in 2026, with high-parity, low-efficiency sows being culled. Low-efficiency expansion projects were terminated and low-efficiency subsidiaries liquidated to control capital consumption.

 

The proceeds from this perpetual medium-term note offering are counted as equity, not liabilities, and will be used to repay borrowings from financial institutions and supplement working capital for day-to-day operations. This will help further optimize the capital structure and strengthen the financial foundation across cycles. Currently, short-term debt accounts for 28.2%, while revolving loan facilities with tenors of 2-3 years account for 55%. Bank credit facilities total approximately 60 hundred million yuan, ensuring smooth refinancing.

 

The successful issuance of this perpetual medium-term note affirms the capital market’s recognition of the company’s cross-cycle business strategy and financial soundness. Looking ahead, New Wufeng said it will continue to follow industry policy guidance, focus on cost leadership, maintain cash flow security as its bottom line, and continuously optimize its debt structure and strengthen its equity capital. With sound financial strength and continually improving operational efficiency, it will navigate cycles with confidence and seize opportunities arising from the industry’s recovery. (Source: Company announcement, Securities Daily)