Xiao Ming Agriculture and Animal Husbandry Co., Ltd. increased 107.59% year on year in 2016

By CnAgri2017-06-13 09:38:25 Print

Ningxia Xiaoming Agriculture and Animal Husbandry Co., Ltd. is an breeding layer enterprises integrating “introduction, breeding and promotion” in the upstream of laying hens breeding industry, has two standardized scale breeding bases which include three GP birds farms, 13 parental birds farms and four modern hatching hatcheries with an annual hatching capacity of 120 million 120 million healthy young laying hens.

From the operating data, in 2016 reporting period, the company realized operating revenue and operating profit of 295 million yuan and 72.94 million yuan, increasing 20.62% and 107.59% year on year; and the net profit attributable to shareholders of the company was 72.11 million yuan, up 81.26% year on year. The main reasons for the increase in operating revenue and profit firstly was the rise in sales prices of chicks in 2016; secondly was that the fourth and fifth production districts in Qingtongxia went into production, its production capacity of commercial chicks improved greatly compared with the previous year and led to unit cost reduction; and thirdly was the price decline of raw materials (corn, soybean meal, etc.); in addition, the company raised money by equity (CP Group: 150 million yuan, Da Bei Nong: 50million yuan), and financial cost decreased over the previous year.

In terms of operating revenue structure, the proportion of parental and commercial chicks increased over the previous year, while the operating revenue of by-products (eggs and chicken manure) accounted for a decreased proportion compared with that in the previous year due to the price decline of by-products.

Although the prosperity of China’s layer industry is declining in 2017, Xiao Ming Agriculture and Animal Husbandry offsets some adverse influence caused by cyclical fluctuation by virtue of its brand, product, management, talent and financing advantages and still is one of the layer enterprises with better profitability.