On August 25th, Fengxiang Co. (09977.HK) announced that in the first half of 2024, the group achieved sales revenue of CNY 2.654 billion, a year-on-year growth of 8.9%. The net income was CNY 60.1 million, a year-on-year decrease of 26.8%. The group has the advantage of a multi-channel layout, with continuous growth in export business and revenue from important customers. The refined management by the management team and all employees has improved production efficiency and reduced costs. In addition, the decrease in raw material prices and the improvement in breeding efficiency have further reduced breeding costs. Despite the increase in sales of chicken products, the soft consumption of terminal chicken and the decrease in the average selling price of chicken products led to a decrease in net income.
In the first half of 2024, the broiler chicken industry is in a phase of "continued bottoming out" due to the dual impact of supply and demand. In the breeding process, the prices of raw materials such as corn and soybean meal continue to decline, further improving breeding costs. In the processing and sales process, chicken consumption is weak, and various channels are performing poorly, leading to a decrease in the price of chicken products to a new low in nearly 3 years.
In the first half of 2024, Fengxiang Co. adhered to three "continuous" development initiatives, fully leveraging the advantages of an integrated industry chain business model and a multi-channel layout, strengthening the cohesion with important customers, focusing on refined management of each link, continuously increasing efforts to reduce costs and increase efficiency, and overall operational management level has been greatly improved.
