Pig farming subsidiary loses 1.29B yuan! | Guangming Meat Industry reports first loss in 15 years! Operating cash flow turns negative in 2025

(Source: Boya Hexun)

On March 31, Guangming Meat Industry announced its 2025 annual report, revealing total operating revenue of 22.13 billion yuan, a year-on-year increase of 0.65%; net profit attributable to the parent was a loss of 1.32 billion yuan, a decrease of 348 million yuan from 216 million yuan in the previous year, a decline of 161.30%. This marks Guangming Meat Industry’s first loss since 2010.

The annual report shows that the core drag on Guangming Meat Industry’s performance turning from profit to loss comes from its pig farming business. In 2025, the company’s total pig slaughter volume was 132M heads, with a narrower operating loss compared to the previous year. However, affected by low pig prices fluctuating and impairment provisions, the overall loss of the pig farming business expanded. It is reported that its pig farming business is mainly operated by its subsidiary Guangming Agriculture and Animal Husbandry Technology Co., Ltd., which, in 2025, suffered a net loss of 1.03M yuan, becoming a major black hole consuming the listed company’s profits.

In 2025, net profit was a loss of 132M yuan, a year-on-year decrease of 160.87%.

Guangming Meat Industry announced its 2025 annual report on March 31. From the beginning of the year to the reporting period, the company’s operating revenue was 22.13 billion yuan, a 0.65% increase over the same period last year; net profit attributable to shareholders was -1.32 billion yuan, down 161.30% from the same period last year; basic earnings per share were -0.14 yuan/share, down 160.87% from the same period last year.

The company mainly engages in the development, production, and sales of pork, beef, mutton, and branded leisure food products. Focusing on food manufacturing and distribution, with excellent product quality as the foundation and brand building as the approach, it is committed to providing consumers with “safe, high-quality, healthy, delicious, and convenient” food. It holds an irreplaceable position in the supply chains of households, catering enterprises, and other food processing companies, closely related to people’s production and daily life. The main products include pork, beef, mutton, canned foods, meat products, as well as candies, honey, and drinking water. Major brands include: Meilin B2, Silver Fern, Su Food, Aisen, Lianhao; Guanshengyuan, White Rabbit, Zhenguanghe, etc.

Looking back at the company’s historical performance, this is Guangming Meat Industry’s first loss since 2010.

The company’s core business segments are meat products and branded food products. The meat business includes pork and beef/mutton, involving breeding, slaughtering and distribution, deep processing of meat products, and distribution.

First loss in 15 years, pig farming becomes a profit black hole

Data from the annual report shows that the main reason for Guangming Meat Industry’s shift from profit to loss is its pig farming business.

The company explicitly states in the annual report that in 2025, the total pig slaughter volume was 132M heads, with a narrower operating loss compared to the previous year. However, due to low pig prices and impairment provisions, the overall loss further expanded.

According to financial data from the attached annex of the annual report, the core subsidiary responsible for the company’s pig farming—Guangming Agriculture and Animal Husbandry Technology Co., Ltd.—suffered a net loss of 1.03M yuan in 2025, becoming the largest black hole consuming the listed company’s profits.

This loss not only far exceeds the overall loss of the listed company but also directly offsets all profits from other businesses such as food processing and brand retail.

In fact, pig farming has long been the biggest variable affecting Guangming Meat Industry’s performance.

In 2024, the pig farming segment already experienced significant losses, but at that time, profits from other businesses could still cover the losses, allowing the company to achieve overall profitability.

Entering 2025, China’s domestic pig market remained at a cyclical bottom, with spot prices mostly below cost throughout the year. Large-scale breeding enterprises in the industry generally fell into losses.

According to the 2025 pig market monitoring data released by the Ministry of Agriculture and Rural Affairs, the nationwide average pig price decreased by over 10% year-on-year, while the breeding sow inventory remained high, and the market supply exceeded demand, prolonging the industry’s overall loss cycle compared to previous years.

Against this backdrop, Guangming Meat Industry’s pig farming business not only failed to break the cycle but also, due to capacity layout mismatched with price cycles and asset impairment provisions, saw its losses further expand.

Cash flow turns from positive to negative

More concerning than the performance loss is the significant deterioration of Guangming Meat Industry’s operating cash flow.

The annual report shows that in 2025, the company’s net cash flow from operating activities turned negative, a rare occurrence in the company’s annual financial reports since its listing.

Regarding the cash flow abnormality, the company explained in the annual report that it was mainly due to slowed collection of revenue funds and increased payments for procurement.

Comparing historical financial data, it was found that in 2024, the company’s net cash flow from operating activities was still positive. The shift to negative in 2025 directly impacted the company’s working capital turnover and risk resistance.

Behind the cash flow pressure is the sluggish growth of the company’s core business.

In 2025, the company’s operating revenue increased by only 0.65% year-on-year. In the context of the overall recovery of the food consumption industry, this growth rate is significantly below the industry average.

From the revenue structure, the meat business remains the company’s largest source of income. However, affected by fluctuations in pig prices and differentiated terminal consumer demand, the gross profit margin of this segment continued to be under pressure, failing to generate profit growth for the company.

Meanwhile, branded food products centered on White Rabbit and Meilin maintained relatively stable profitability, but their overall revenue scale is limited, making it difficult to offset the huge losses from the farming business.

The annual report also announced Guangming Meat Industry’s operational plan for 2026, aiming for a total revenue of 23.2 billion yuan.

This means the company needs to achieve approximately 4.8% revenue growth in 2026. With no clear turnaround in the farming business and sluggish core business growth, this target still faces significant challenges.

Sources: Company announcements, Shenzhen Business Daily·Duchuang, Investment Reference Network. If infringement is involved, please contact for removal, phone: 0371-63357633.