Dekon Food and Agriculture Group (2419) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 reached RMB11,695.4 million, up 24.3% year-over-year, driven by strong pig segment performance and increased sales volumes.

• Profit before biological assets fair value adjustments surged 250.6% year-over-year to RMB1,273.1 million, reflecting improved operational efficiency and cost control.

• Net profit attributable to shareholders was RMB1,292.4 million, down from RMB1,766.5 million in the prior year, mainly due to lower fair value gains on biological assets.

• Gross profit margin improved to 17.4% from 12.4% in the prior year, supported by lower feed costs and enhanced management.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: RMB11,695.4 million (+24.3% YoY); Pig segment revenue: RMB9,878.8 million (+32.6% YoY); Poultry segment revenue: RMB1,335.5 million (–13.5% YoY); Ancillary products revenue: RMB481.1 million (+16.1% YoY).

• Profit before biological assets fair value adjustments: RMB1,273.1 million (+250.6% YoY); Net profit: RMB1,292.4 million; Earnings per share: RMB3.32.

• EBITDA (before biological assets fair value adjustments): RMB1,878.0 million (+81.7% YoY).

• Gross profit margin: 17.4% (vs. 12.4% prior year).

• Net cash generated from operating activities: RMB1,738.9 million; Capital expenditure: RMB556.6 million.

Outlook and guidance

• Pig segment to focus on empowering farmers, expanding ecological circular agriculture, and increasing market share in Southwest China.

• Poultry segment expects demand recovery in H2 2025, with efforts to reduce costs, optimize breed structure, and expand sales channels.

• Ancillary segment to enhance slaughtering and food processing efficiency, aiming for high-quality, traceable meat products and regional market share.

• Continued investment in ESG initiatives and risk management, including use of pig futures for hedging.

• Focus remains on innovation, efficiency, and cost reduction across all segments in the second half of 2025.