Driving force: The cyclical fluctuations in the pig industry do have an impact on the company, but the overall risk is controllable.

Translated from: Beike Finance

Xinjingbao Beike Finance News (Reporter Huang Xinyu) On March 27, Guangdong Qudongli Biotechnology Group Co., Ltd. (referred to as “Qudongli”, 920275.BJ), a company listed on the Beijing Stock Exchange, responded to investors’ concerns regarding the “actual impact of cyclical fluctuations in the pig industry on company performance” in its latest investor relations activity record.

According to Qudongli, the company’s main business involves the research, development, production, and sales of additives and premixes that enhance animal hematopoietic capacity. However, the company’s market share is still relatively small, and there are many market opportunities in the pig industry that remain to be developed and broken through.

Qudongli believes that its products are diversified, and even if the pig market is poor, the company can strengthen product research and market expansion in other fields. “For example, in areas such as poultry, ruminants, and aquaculture, thereby reducing the operational risks brought by the cyclical fluctuations of the single pig industry.” Based on this, Qudongli’s management stated that while cyclical fluctuations in the pig industry do have an impact on the company, the overall risk is controllable.

The official website shows that Qudongli was established in May 2012 and is a specialized and innovative small and medium-sized enterprise engaged in animal hematopoietic nutrition. In November 2021, Qudongli was listed on the Beijing Stock Exchange.

Performance reports indicate that by 2025, Qudongli expects to achieve operating revenue of 76.8092 million yuan, a year-on-year increase of 7.07%; the expected net profit attributable to the parent company is 4.5536 million yuan, a year-on-year decline of 67.42%.

Regarding the main factors affecting operating performance, Qudongli believes that during the reporting period, the sales proportion of its high-gross-margin hematopoietic series products 1 and 2 decreased by about 18.45%, while the sales proportion of the lower-gross-margin hematopoietic series product 3 increased by about 17.09%, leading to a year-on-year decrease in overall gross profit margin of about 9.87%, and a year-on-year reduction in operating gross profit of about 5.4224 million yuan.

Editor Wei Yingzi

Proofreader Zhao Lin

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