Recently, New Hope Liuhe Co.Ltd(000876) (000876. SZ) released the performance forecast for 2021. New Hope Liuhe Co.Ltd(000876) it is estimated that in 2021, the net profit loss attributable to shareholders of listed companies will be RMB 8.6 billion-9.6 billion, a decrease of 273.94% – 294.17% over the same period of last year, and the profit in the same period of last year will be RMB 4.944 billion; After deducting non recurring gains and losses, the net profit loss was 6.721 billion yuan – 7.721 billion yuan, a decrease of 204.72% – 220.31% over the same period of last year, and the profit in the same period of last year was 6.418 billion yuan; The loss of basic earnings per share was 2.00 yuan / share – 2.22 yuan / share, and the profit was 1.17 yuan / share in the same period of last year.
As for the reasons for performance changes, New Hope Liuhe Co.Ltd(000876) said that the company sold 9.9781 million pigs during the reporting period, an increase of 20% over the same period. However, due to the gradual recovery of China’s pig production capacity (the year-on-year increase of 27.4% in the national pig market in 2021, and the year-on-year increase of 45.3%, 30.1% and 16.7% respectively at the end of the first quarter, the second quarter and the third quarter), the pig price in 2021 decreased significantly compared with the same period last year (the average sales price of commercial pigs of the company decreased by about 42% year-on-year). At the same time, due to the continuous rise in the price of feed raw materials (China’s corn price hit a record high, and the spot price of soybean meal also rose sharply), the company still has some purchased pig seedlings for fattening, and the company continues to promote the replacement and optimization of breeding pigs, the cost of pig breeding has increased significantly year-on-year, and the company’s pig breeding business has suffered a significant loss.
In addition, according to the requirements of the accounting standards for business enterprises, the company has made an impairment test on the current biological assets on hand, according to the structure, age, cost and listing rate of the current biological assets on hand, as well as the prediction of the company and the industry on the future pig price, and with reference to the price of pig futures, and made an impairment provision of about 1 billion yuan.
