Finance Associated Press, October 30th news (Reporter Zhang Chenjing) With the recovery of pork prices, breeding enterprises have successively reported good performance in the third quarter, zhejiang huatong meat products (002840.SZ) turned a loss in the same period of the first three quarters.

Tonight, the company issued an announcement. In the first three quarters of this year, the company achieved operating income of 6.485 billion yuan, an increase of 5.21% year-on-year; net profit attributable to shareholders of the listed company was 53.4228 million yuan, a net loss of 358 million yuan in the same period last year.

Although the performance has improved, the debt ratio of zhejiang huatong meat products remains high. As of the end of the third quarter, the asset-liability ratio of zhejiang huatong meat products is basically the same as the end of the previous year, reaching 74.42%; at the same time, both short-term loans and long-term loans have reached record highs, totaling nearly 4 billion yuan.

The main business of zhejiang huatong meat products includes three major sectors: pig farming, pig slaughtering, and deep processing of meat products. However, its core product is fresh pork after slaughtering, with this business revenue accounting for over 90% of the company's total revenue.

For slaughtering enterprises, the cost of pig raw materials is the most significant cost of the slaughtering business. Generally, when the market price of live pigs rises, the cost of raw materials for the slaughtering business will also significantly increase. Different from other pig breeding enterprises, zhejiang huatong meat products rapidly expanded its pig farming capacity, reducing the raw material costs of its slaughtering business and meat processing business. The company's operating goal is to achieve self-breeding, self-raising, and self-slaughtering of pigs.

However, currently due to high breeding costs, the company's self-breeding, self-raising, and slaughtering businesses have not been fully coordinated. The company previously disclosed that the breeding cost in the first quarter of this year was 16.43 yuan/kg, which is higher than leading pig enterprises such as muyuan foods (002714.SZ) and wens foodstuff group (300498.SZ).

It is worth noting that zhejiang huatong meat products also announced tonight that it will increase the expected amount of daily related party transactions. It is expected to have an additional related party transaction of 80 million yuan, mainly for leasing property and purchasing feed raw materials to the company's controlling shareholder Huatong Group Co., Ltd. and its controlled subsidiaries, and Zhejiang Huatong Import and Export Co., Ltd. The announcement shows that from the beginning of the year 2024 to October 20th, the related transactions have already reached 276 million yuan, an increase of 1.17 times compared to 127 million yuan last year.