October 13, 2022

Newly listed Yuehai Feed encounters strong challenges in 2022

 

Recently listed Guangdong Yuehai Feed Group has an aquatic compound feed plant with an annual capacity of 150,000 tonnes in Zhongshan Taishan, an aquatic compound feed plant (120,000 tonnes) in Hainan and an aquatic compound feed plant (100,000 tonnes) in Anhui.

Additionally, its production capacities in Tianmen Yuehai, Hunan Yuehai, Jiangsu Yuehai and other sites have elevated the company's need for front-line personnel.

Last July, the company released its 2022 semi-annual performance forecast - which showed the company's sales volume of aquatic feeds, in the first half of 2022, at 397,700 tonnes, a year-on-year increase of 2.77%. However, net profit attributable to shareholders is expected to lose ¥50-60 million (US$7.3-8.8 million). Yuehai Feed claimed three key reasons for the loss: increased raw material costs,  a year-on-year increase in its operational expenses and weak aqua feed sales.

Since its establishment in 1994, Yuehai Feed is deeply engaged in producing specialised aquatic feeds, including shrimp feeds and marine fish feeds. The company's chief competitive advantage is its firm focus on aquafeed for over 20 years.

Yuehai Feed also obtained several technical achievements in the fields of marine fish feed, shrimp feed and general aquatic feed. These allowed the company to produce various feed varieties for different aquatic species, thus propelling its growth over the years. Additionally, its technical advantages will help determine whether Yuehai Feed can recoup its losses in the second half of 2022.

However, in the near term, multiple factors will amount to a great challenge for Yuehai Feed. In response, the company said that it would improve its internal management efficiency and market procurement advantages as well as reduce costs.

- David Lin, eFeedLink