Luoniushan Co Ltd

Luoniushan released its 2026 half-year report. Amid a deep downturn in hog prices and widespread industry losses, the company achieved operating revenue of 1.241 billion yuan, up 14.48 percent year on year. However, net profit attributable to the parent company was a loss of 310 million yuan, swinging from a loss of 6.7171 million yuan in the same period last year. After deducting non-recurring items, net profit attributable to the parent company was a loss of 304 million yuan, compared with a profit of 8.8966 million yuan a year earlier. Net cash flow from operating activities was negative 138 million yuan. Animal husbandry remained the core revenue source, generating 726 million yuan and accounting for 58.49 percent of total revenue, but the segment's gross margin fell to negative 20.39 percent, mainly because the average selling price of live hogs fell below the cost line. Slaughter volume of Duroc-Landrace-Yorkshire hogs rose 53.22 percent year on year to 421,600 head, but hog prices fell about 36 percent year on year. The company made total asset impairment provisions including inventory write-downs of 140 million yuan. The real estate business achieved revenue of 135 million yuan, up 73.87 percent year on year, with a gross margin of 44.75 percent. Total slaughter volume in the slaughtering and cold-chain logistics business rose 65.76 percent year on year.

Luoniushan released its 2026 interim report, with net profit attributable to the parent company at negative 310 million yuan, a decrease of 303 million yuan compared with the same period last year, and the loss widened year-on-year. The company's total operating revenue was 1.241 billion yuan, and net cash flow from operating activities was negative 138 million yuan. The latest asset-liability ratio was 52.33%, gross margin was 0.66%, ROE was negative 7.77%, and diluted earnings per share was negative 0.27 yuan.

Luoniushan disclosed its earnings forecast, expecting a net loss attributable to the parent company of 290 million to 330 million yuan in the first half of 2026, compared with a loss of 6.7171 million yuan in the same period last year. The company's hog slaughter volume increased by 43.75 percent year-on-year, but the price of commercial pigs fell by 35.69 percent year-on-year to 9.89 yuan per kilogram, leading to operating losses. In addition, based on the principle of prudence, the company made total asset impairment provisions of approximately 130 million yuan, including about 110 million yuan for price decline provisions on consumable biological assets.

Luoniushan sold 83,100 hogs in June, down 19.92% month-on-month but up 63.04% year-on-year. Corresponding sales revenue was 78.2871 million yuan, down 22.88% month-on-month and down 11.19% year-on-year. The clear month-on-month decline in hog sales volume, combined with lower hog selling prices, led to a double decline in sales revenue both year-on-year and month-on-month. Looking at the longer cycle, from January to June 2026 the company sold a cumulative 456,200 hogs, up 43.75% year-on-year, but cumulative sales revenue was 560 million yuan, down 7.61% year-on-year, presenting an overall picture of sharply higher sales volume but weaker revenue. The year-on-year increase in monthly and first-half hog sales volume was mainly due to the release of production capacity at some hog farms and an increase in the number of commercial hogs slaughtered. The company also cautioned that hog market prices are prone to large fluctuations, which can significantly impact business performance, and that price volatility is a systemic external risk that exists objectively across the entire industry and is difficult to control independently.

Luoniushan released its June livestock sales briefing, with hog sales revenue for the month at 78.2871 million yuan, down 11.19 percent year-on-year. In June, the company sold 83,100 hogs, down 19.92 percent month-on-month but up 63.04 percent year-on-year. For the first half of 2026, cumulative hog sales reached 456,200 head, up 43.75 percent year-on-year, while cumulative sales revenue amounted to 560 million yuan, down 7.61 percent year-on-year.