November 9, 2022
A look at China's poultry industry's performance in H1 2022
The financial results of listed Chinese poultry companies for the first half of 2022 saw some dismal results, with only Huaying Agriculture's net profit exceeding ¥50 million (US$7.2 million).
Wen's Group reported a loss of ¥3.524 billion (US$502 million) in the first half, mainly due to its pig business, which accounted for 44.8% of the company's revenue. Its poultry business, which contributed 47.09% of the company's revenue, has an operating profit of ¥879.7 million (US$126 million).
Companies in the chick production sector generally performed more poorly. White feather broiler integrated enterprises Fengxiang and Shengnong did not see positive results either.
The statuses for Chinese poultry companies are as follow:
- Xiaoming: A breeding company that integrates the breeding of grandparent stock and parent stock, egg hatching and chick sales, Xiaoming sold 95.5624 million commercial chicks in the first half of 2022, a 16.53% increase over the same period of 2021;
- Xiantan: The company's main products are white-feather broiler and chicken products. Although the company made a net profit of ¥16.83 million (US$2.4 million) in the first half, it fell by 86.19% compared with the same period last year;
- Chunxue Foods: Specialising in the research and development, production, processing and sales of white-feather chicken-based food, Chunxue's sales of pre-cooked products grew steadily in the first half, accounting for 61% of overall sales;
- Fengxiang: The second largest fully integrated white feather broiler producer in China has a breeding volume of 72.2 million white feather broilers in the first half, an 8.8% increase on year. Its slaughter volume totaled 162 million birds, a 20.8% increase on year;
- Wen's: The largest yellow-feather broiler company in China has a total sales volume of 488 million broilers in the first half.
While New Hope Liuhe's poultry segment accounts for only 13.3% of its business, it is also considered a major player in China's poultry industry.
In the first half of 2022, New Hope's poultry segment achieved an operating income of ¥8.289 billion (US$1.1 billion) and an operating profit of ¥229 million (US$33 million). A total of 278.4 million chicks and ducklings were sold, along with 195.8 million broiler chickens and ducks.
New Hope also slaughtered 322 million chickens and ducks in the first half, and its combined sales volume of chicken and duck meat was 801,800 tonnes.
- David Lin, eFeedLink