April 1, 2025

Report highlights Shenzhen Kingkey Smart Agriculture's financial achievement in pig farming

 

Shenzhen Kingkey Smart Agriculture Times released its 2024 annual financial report on March 30, demonstrating significant achievements in its strategic transformation focused on pig farming as the core business.

 

The report shows the company achieved operating revenue of ¥5.96 billion (US$894 million), net profit attributable to shareholders of ¥714 million (US$107.1 million), non-GAAP net profit of ¥786 million (US$117.9 million), and basic earnings per share of ¥1.38 (US$0.207).​

 

Notably, the company's profit structure has undergone fundamental changes. In 2024, the pig farming business generated revenue of ¥3.901 billion (US$585.15 million), representing year-on-year growth of 38.69% and accounting for 65.45% of total revenue, delivering profits despite challenging market conditions.​

 

Concurrently, the company announced its 2024 profit distribution plan, proposing a cash dividend of ¥3.5 per 10 shares (tax inclusive), totaling ¥182 million (US$27.3 million). Against the cyclical fluctuations in the pig farming industry, the company's strong performance—with excellent breeding costs of ¥13.67/kg (approximately US$2.05/kg) and robust operating cash flow reaching ¥997 million (US$149.55 million)—provides solid support for the generous dividend distribution, fulfilling its commitment to shareholder returns.​

 

During the reporting period, Shenzhen Kingkey Smart Agriculture Times' pig farming business sold a total of 2.1461 million hogs, a year-on-year increase of 16.32%, with sales revenue reaching ¥3.901 billion (US$585.15 million) and net profit of ¥533 million (US$79.95 million).​

 

The performance marks a fundamental success in the company's strategic transformation initiated in 2019, with modern agriculture now established as a core sustainable growth driver.​

 

The company's transformation focused on two key pillars: business restructuring and continuous capacity expansion. Four major pig farming projects and supporting feed mills were completed and operationalised at "Shenzhen speed," delivering "Shenzhen quality" to the Greater Bay Area, the report states. In 2022, the company achieved its "one million hogs in three years" target with an output of 1.2644 million hogs. By 2024, output officially surpassed the two million mark, accomplishing the "two million hogs in five years" milestone. Rapid capacity release, quality assurance, and regional premiums in the Greater Bay Area have accelerated the transition from the previous property-dominated profit structure.​

 

Over the past year, amid the industry's "low-margin" competition, the company achieved excellent results in breeding efficiency and cost control through deep integration of digitalisation and industrialisation, demonstrating the resilience of high-quality pig farming development. Data shows that in February 2025, the company's full breeding cost decreased to ¥13.67/kg (US$2.05/kg), positioning it among the industry's top performers.​

 

Specifically, the company adopted a "high-rise cluster + 6750 integrated self-breeding and self-raising" model, supported by eight intelligent farming systems, effectively improving breeding efficiency. Advanced technologies including precision nutrition systems, four-week batch production models, three-batch hog sales strategies, and metagenomic sequencing further enhanced production levels, achieving cost reductions and efficiency improvements.​

 

The annual report shows the company's R&D investment in 2024 reached ¥52.1089 million (US$7.82 million), a year-on-year increase of 20.89%. By year-end, it had accumulated 34 national patents and nine software copyrights. Through ongoing collaboration with institutions including South China Agricultural University, the company undertook national "14th Five-Year Plan" R&D projects, won the Guangdong Provincial Agricultural Technology Promotion Award, and led the approval of the Guangdong Provincial Local Standard "Technical Specifications for Biosafety in Multi-Story (Building) Large-Scale Pig Farms."​

 

The company's investments in new quality productivity extend beyond efficiency and cost reduction to green ecology and rural revitalisation. In 2024, it signed a Strategic Cooperation Framework Agreement with the Guangdong Academy of Agricultural Sciences' Institute of Animal Science to jointly develop environmentally friendly pig farms, providing practical cases and technical support for sustainable agricultural development.​

- PRNewswire