Operating Revenues and Profits of Listed Feed Companies in 2019 and in the First Qurater of 2020 Ascended Obviously

In 2019, operating revenues of most listed companies ascended, and only Dabeinong and Jinxinnong saw a decline and Tangrenshen’s operating revenues were almost the same as last year. Meanwhile, listed feed companies all made a profit in the first quarter of 2020, and the profits of them most were higher than that in the same period of last year, and more half of them saw a year-on-year growth of more 100% in net profits. Zhengbang’s profits were 8.5 times as high as last year. In the first quarter of 2020, listed feed companies continued the good situation of 2019, and most of them saw a continuous growth in operating revenues and net profits.
 
In 2019 and in the first quarter of 2020, these enterprise groups’ operating revenues ascended, mainly because of a rapid growth in hog purchase prices for nearly one year. Few listed feed enterprise groups focus on feed production and most of them are developing in the form of diversification. In recent years, they have entered the downstream farming industry, whose revenues from farming industry ascended greatly year on year, contributing to the overall operating revenues of feed groups obviously. However, for Dabeinong, Tangrenshen, Jinxinnong, etc., they have a relatively low proportion in farming business and pig feed takes up an absolute proportion in feed products, and a decline in hog stocks led to a reduction in feed sales, so their operating revenues went down year on year.    
 
Since 2019, hog farming margins have kept increasing. In the first quarter of 2020, farming margins reached up to RMB 2,000-3,000/head, a record high, which makes the companies involving in hog farming improve obviously. Meanwhile, under the situation of relatively low hog stocks, poultry farming margins were higher than those of last year, so Wellhope Group with relatively huge investment in meat poultry farming improved obviously.