Dabeinong Swings to First-Half Loss on Weak Hog Prices

Dabeinong Technology Group Co. , Ltd. released its 2026 semi-annual report, showing revenue of RMB 13.811 billion for the period, up 1.86% year on year. Net profit attributable to shareholders of the listed company was a loss of RMB 677 million, compared with a profit of RMB 235 million in the same period of 2025, a decrease of 387.52%. Net profit attributable to shareholders excluding non-recurring gains and losses was a loss of RMB 656 million, down 484.29% year on year. Net cash flow from operating activities was negative RMB 1.225 billion, down 5181.05% year on year. Basic earnings per share were negative RMB 0.16, versus RMB 0.05 in the same period of 2025. As of the end of the first half, total assets were approximately RMB 28.347 billion, down 3.3% from the same period of 2025. By business segment, feed product revenue in the first half of 2026 was RMB 9.352 billion, up 8.75% year on year, accounting for 67.71% of total revenue, with a gross margin of 11.51%, down 0.98% year on year. Hog product revenue was RMB 2.992 billion, down 11.99% year on year, accounting for 21.67% of total revenue, with a gross margin of negative 4.66%, down 21.05% year on year. Seed product revenue was RMB 461 million, accounting for 3.34% of total revenue. Regarding the swing to a loss, the company said that seed and feed sales volumes increased year on year in the first half, and hog farming costs decreased year on year, but due to the depressed hog market prices, the average selling price of commercial hogs fell about 30% year on year, leading to a year-on-year swing to a loss in the hog farming business and overall operating results. The company also noted that the hog farming business is affected by multiple factors such as the growth cycle of pigs, inventory levels, feed prices, and market supply and demand, and cyclical fluctuations in hog market prices will cause volatility in the gross margin of the farming industry. If pork prices continue to fluctuate significantly in the future, it will have an adverse impact on the stability of the company's operating results. In the previously released first-quarter report, the company's first-quarter revenue was RMB 7.191 billion, up 4.74% from the same period of 2025; net profit attributable to shareholders was negative RMB 175 million, down 230.19% year on year; basic earnings per share were negative RMB 0.04. The company then stated that the main reasons were the continued low hog prices, declining profits in the farming segment, and the provision for impairment of consumptive biological assets, which led to a year-on-year decline in overall profits.