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Original title: The dawn of the pig industry is gradually emerging, but the company has a loss in performance and tight cash flow
Recently, listed pig companies have successively disclosed sales data in May. In terms of overall performance, the industry’s positive trend is gradually picking up. but,Zhengbang TechnologyHowever, it was disclosed that, affected by the pig cycle, the company and its subsidiaries were overdue for 542 million commercial bills due to tight liquidity. The company is still facing challenges such as revenue decline, profit loss, and tight cash flow.
Zhengbang Technology’s 542 million yuan commercial paper was overdue, resulting in loss of performance and tight cash flow
On June 9, 2022, Jiangxi Zhengbang Technology Co., Ltd. (Stock abbreviation: Zhengbang Technology; stock code: 002157.SZ) disclosed that affected by the pig cycle, the company and its subsidiary Jiangxi Zhengbang Breeding Co., Ltd. have recently experienced some overdue commercial bills due to tight liquidity. As of the disclosure date of this announcement, the overdue outstanding balance totaled 542 million yuan, of which Zhengbang The overdue balance of technology is 517 million yuan.
Zhengbang Technology stated that the company will continue to negotiate with creditors to deal with the overdue commercial bills, and the company may face litigation, arbitration and other risks due to the above-mentioned overdue.
According to the data, Zhengbang Technology currently has three major business sectors: pig breeding, feed and veterinary medicine. On the same day on June 9, the company also disclosed its live pig sales data in May 2022. Due to the reduction in production capacity, the number of live pig sales and sales revenue of Zhengbang Technology in May this year dropped significantly year-on-year. During the reporting period, the company sold 749,700 live pigs (including 312,400 piglets and 437,300 commercial pigs), down 18.39% month-on-month and 54.52% year-on-year; sales revenue was 700 million yuan, down 8.99% month-on-month and 80.83% year-on-year.
In addition, due to the decline in domestic live pig prices, from January to May 2022, Zhengbang Technology sold a total of 4.0944 million live pigs, a year-on-year decrease of 24.34%; the cumulative sales revenue was 4.250 billion yuan, a year-on-year decrease of 71.07%.
In terms of performance, in the first quarter of 2022, Zhengbang Technology achieved operating income of 6.490 billion yuan, a year-on-year decrease of 48.92%; net profit attributable to shareholders of listed companies was -2.433 billion yuan, a year-on-year decrease of 1249.73%. In terms of capital reserves, as of the end of the first quarter of 2022, the company’s monetary capital balance was 3.073 billion yuan, a decrease of 40.14% from the end of 2021.
The data shows that at the end of the 2021 reporting period, the balance of monetary funds held by Zhengbang Technology was 5.133 billion yuan, a year-on-year decrease of 60.65%, of which the restricted fund balance was 3.298 billion yuan, a year-on-year increase of 147.61%, including frozen bank deposits of 206 million yuan; The balance of interest-bearing liabilities (short-term loans, non-current liabilities due within one year, long-term loans, bonds payable) held was 23.248 billion yuan, a year-on-year increase of 23.80%; the asset-liability ratio was 92.60%, a year-on-year increase of 34.04 percentage points. During the reporting period, the company’s interest expenses amounted to 1.259 billion yuan, a year-on-year increase of 37.09%; the net cash flow from operating activities decreased by 148.41% year-on-year.
Zhengbang Technology‘s tight capital liquidity is also reflected in another aspect.
After sorting out, it was found that Zhengbang Technology had previously reviewed and approved the use of part of the company’s raised funds to supplement liquidity funds. As of April 1, 2022, the company still has a remaining 1.102 billion yuan that has not been returned to the special account for raising funds from the public issuance of convertible corporate bonds in 2019; the remaining 2.44 billion yuan has not been returned to the company’s 2020 non-public issuance of stocks to raise funds. On April 1, 2022, Zhengbang Technology held a relevant meeting to review and approve. It is planned to postpone the return of the above-mentioned raised funds and continue to use it to temporarily replenish working capital. The delayed return period shall not exceed 12 months from the date of deliberation and approval by the board of directors, and it will be returned when it expires. to the special account for raised funds.
However, on May 21, 2022, Zhengbang Technology announced that it agreed to terminate the company’s 8 investment projects with raised funds in the public issuance of convertible corporate bonds in 2019 and 14 investment projects with funds raised in the non-public issuance of stocks in 2020, and this 3.618 billion yuan of surplus funds for investment projects (including the net amount of interest income after deducting handling fees, the specific amount is based on the actual balance of funds in the special account at the time of actual carry-over) to permanently supplement working capital for the company’s daily production and operation and business development.
Regarding the reasons for terminating the fundraising project, Zhengbang Technology mentioned that during the implementation of the fundraising project, the pig market and expectations have undergone major changes. According to the company’s working capital arrangement, it is expected that the company will need to pay a large amount of purchases and expenses in the future to meet the normal operation of the company. In order to make good capital reserves, the company plans to terminate the new production capacity in some areas according to the current industry and the actual production and operation conditions of the company to ensure the safety of operating cash flow.
The “Big Three” of pig companies saw good sales in May, and “Pigmao” said the operating cash flow was stable
In addition to Zhengbang Technology,Muyuan shares、Wen’s sharesandnew HopeThe three pig industry giants also disclosed their sales in May recently, and all relevant indicators have increased.
Among them, Muyuan shares (002714.SZ) In May 2022, 5.863 million live pigs were sold (including 1.280 million piglets), and the sales revenue was 8.409 billion yuan. Among them, a total of 521,900 live pigs were sold to Muyuan Meat Food Co., Ltd., a wholly-owned subsidiary, and its subsidiaries. In April 2022, Muyuan Co., Ltd. sold 6.321 million live pigs with sales revenue of 7.942 billion yuan. In May, the company’s commodity pig prices showed a fluctuating upward trend. The average sales price of commodity pigs was 14.87 yuan/kg, an increase of 18.39% from the previous month.
The data shows that the balance of monetary funds held by Muyuan shares at the end of 2021 was 12.198 billion yuan, a year-on-year decrease of 16.42%, of which the restricted fund balance was 3.790 billion yuan, a year-on-year increase of 453.64%; its interest-bearing liabilities (short-term loans, due within one year) The balance of non-current liabilities, long-term loans and bonds payable) was 52.590 billion yuan, a year-on-year increase of 67.94%; the asset-liability ratio was 61.30%, a year-on-year increase of 15.21 percentage points. During the reporting period, the interest expense incurred by the company was 2.219 billion yuan, a year-on-year increase of 140.47%.
On June 2, 2022, in reply to the 2021 annual report inquiry letter sent by Shenzhen Stock Exchange, Muyuan said that the company’s live pig sales business adopts the sales settlement model of “money and goods clearing”, which has good operating cash flow creation. ability. As of December 31, 2021, the company’s monetary capital balance was 12.198 billion yuan, and as of March 31, 2022, the company’s monetary capital balance was 16.116 billion yuan. The company’s operating cash flow is stable, and the operating cash inflow can meet the company’s daily operating activities. In addition, as of December 31, 2021, Muyuan Co., Ltd. has obtained a total financing and credit line of 62 billion yuan, a used credit line of 39.8 billion yuan, and an unused credit line of 22.2 billion yuan. The reserve of financing and credit resources is relatively sufficient. Muyuan expects that the market price of live pigs will improve in the second half of 2022, and the company’s cash flow will continue to optimize and improve.
Wen’s shares (300498.SZ) In May 2022, 1,323,400 pork pigs (including wool pigs and fresh products) were sold, with a sales income of 2.502 billion yuan, and the average sales price of wool pigs was 15.74 yuan/kg, with a month-on-month change of -7.26%, 10.56%, and 18.08%, respectively, and a year-on-year change. They are 38.33%, 15.94%, -13.80% respectively. In May 2022, the company’s pork sales increased year-on-year, mainly due to the company’s increased investment in seedlings and improved production performance.
In addition, New Hope (000876.SZ) In May 2022, 1,045,600 live pigs were sold, a year-on-year change of 50.81%; the sales revenue was 1.766 billion yuan, a month-on-month change of 10.10% and a year-on-year change of 26.50%; the average sales price of commercial pigs was 14.81 yuan/kg, a month-on-month change of 16.71%. The main reason for the large year-on-year increase in the company’s live pig sales in May was the normal release of production capacity.
The production capacity of these pig enterprises has gradually been released, and the sales situation has improved in May
In addition to the above-mentioned companies, recently, other A-share listed pig companies have also released their sales data for May this year. On the whole, these companies have increased in different degrees in terms of sales scale, sales revenue and average sales price.
Tianbang shares（002124.SZ) In May 2022, 383,900 commercial pigs were sold (including 2,767 piglets), the sales revenue was 757.7262 million yuan, the average sales price was 15.73 yuan/kg (the average price of commercial fat pigs was 15.34 yuan/kg), and the month-on-month changes were 0.77 %, 13.97%, 17.26%.
DabeinongIn May 2022, 280,400 live pigs were sold, and sales revenue was 481 million yuan, a month-on-month increase of 3.89%. From January to May 2022, the company sold a total of 1.6974 million live pigs, a year-on-year increase of 23.09%. The cumulative sales revenue was 2.398 billion yuan, a year-on-year increase of -40.23%.
Tiankang Biology（002100.SZ) In May 2022, 187,900 live pigs were sold, an increase of 18.32% month-on-month and 51.65% year-on-year; sales revenue was 306 million yuan, a month-on-month increase of 41.67% and a year-on-year increase of 29.66%. In May 2022, the company’s pig sales, sales revenue, and year-on-year growth were mainly due to the release of production capacity after the new breeding bases in Henan and Gansu were put into operation.
Tang Ren Shen（002567.SZ) In May 2022, the sales volume of live pigs was 150,800 (including 132,000 commercial pigs and 18,800 piglets), a year-on-year increase of 20.45%; the total sales revenue was 248.53 million yuan, a year-on-year increase of 33.99% and a month-on-month increase of 22.25%. In May 2022, the main reason for the year-on-year increase in the company’s live pig sales was the gradual release of live pig production capacity and the increase in fat pig production.
Jin Xinnong(rights protection) (002548.SZ) In May 2022, the total sales volume of live pigs was 116,800, the total sales revenue was 131 million yuan, and the average selling price of live pigs was 20.45 yuan/kg (the average price of commercial pigs after excluding the effects of piglets and breeding pigs was 15.61 yuan/kg). The month-on-month changes in the average selling price and sales price were 37.05%, 60.97% and 18.26% respectively. From January to May 2022, the company sold a total of 537,900 live pigs, with a cumulative sales income of 617 million yuan, an increase of 43.67% and -41.48% respectively over the same period of the previous year.
Dawnrays（001201.SZ) In May 2022, a total of 38,900 live pigs were sold, with a sales income of 77 million yuan, a month-on-month increase of 6.26%. In May 2022, the company’s average selling price of commercial pigs was 19.90 yuan/kg, a month-on-month increase of 16.30%.
Due to the gradual release of production capacity, the number of commercial pigs has increased.Lihua shares（300761.SZ) In May 2022, 36,500 pork pigs were sold, with a sales income of 70 million yuan, and the average selling price of pork hogs was 15.90 yuan/kg. , -16.07%.
Zhenghong Technology（000702.SZ) In May 2022, 19,700 live pigs were sold, a year-on-year increase of 133.33%; sales revenue was 33.2389 million yuan, a month-on-month increase of 18.69% and a year-on-year increase of 94.17%. From January to May 2022, the company sold a total of 77,100 live pigs, a year-on-year increase of 31.15%; the cumulative sales revenue was 114.5812 million yuan, a year-on-year decrease of 37.72%. The year-on-year increase in live pig sales was mainly due to the increase in live pig sales.
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Responsible editor: Feng Tiwei