Affected by the price of pigs, New Hope will lose 2.95 billion yuan in the first half of the year...

On July 15, New Hope announced its 2021 semi-annual performance forecast.

New Hope stated in the notice that compared with the same period of last year, the sales price of live pigs during the reporting period has dropped significantly, and the increase in feed material prices and the impact of the epidemic have added to the increase in the cost of pig farming, which led to the pig industry’s loss, which was the main cause of the operating performance loss for the current period.

In addition, due to the significant drop in the market pig price from the beginning of the year, the company conducted an impairment test on the current inventory of consumable biological assets in accordance with the principle of the lower of the cost and the net realizable value in accordance with the requirements of corporate accounting standards and prudence.

According to the report for the first quarter of 2021 released by New Hope, since the beginning of the year, New Hope’s performance has fallen sharply.

As for the decline in performance, New Hope also attributed the reason to the decline in pig prices

According to analysis, China’s pig industry has a relatively typical cyclical law.

Due to the excessive drop in pig prices, on June 30, the National Development and Reform Commission issued a message stating that from June 21 to 25, the national average pig-to-food ratio was 4.

It is understood that feed, pig industry, and poultry industry are the three major sources of revenue for New Hope

Not only that, New Hope also spares no effort in the construction of pig farms.

In addition, New Hope has previously implemented restricted stock and stock option incentive plans to increase incentives for core technical personnel and the core backbone of the pig business team to increase the development of the pig industry

But looking at it now, overconfidence in the new hope of betting on the pig industry, due to the ever-declining pig price, for the time being, I have no choice but to accept the consequences of a sharp decline in performance from profit to loss

On the other hand, New Hope’s poultry industry is not optimistic.

With the gradual recovery of pig production capacity across the country, coupled with the weakening of demand caused by the new crown epidemic, the poultry cycle has begun to decline significantly and faster than the pig cycle

During the reporting period, the poultry industry achieved operating income of 18.

Misfortunes never come singly.

According to the penalty decision issued by Qingdao Ecological Environment Bureau on July 7, 2021 (penalty decision document number: Qinghuanxi Punishment No.

The law enforcement officers asked the company's environmental protection supervisor on the spot, and responded that the damage of the oxidation pond of the breeding farm caused the sewage to leak.
In order to prevent the dam from breaking, the water pipe was used to drain to the roadside natural ditch
.

The conduct of Laixi New Hope Liuhe Agriculture and Animal Husbandry Co.
, Ltd.
is suspected of violating the provisions of Article 10 of the "Water Pollution Prevention and Control Law of the People's Republic of China".
The Qingdao Municipal Bureau of Ecology and Environment shall comply with the "Water Pollution Prevention and Control Law of the People's Republic of China" 83 The second item of the article is to impose a fine of RMB 730,000 on the enterprise as an administrative penalty
.