Dekang Agriculture and Animal Husbandry (02419) released its interim results, with operating revenue of 10.089 billion yuan, deepening farming science and technology innovation to build a core barrier to reducing technical costs

According to the Zhitong Finance App, Dekang Agriculture and Animal Husbandry (02419) announced interim results for the six months ended June 30, 2026. The group achieved operating income of RMB 10.089 billion (same unit), a year-on-year decrease of 13.74%; net loss of 1.305 billion yuan. In the same period last year, it achieved net profit of 1,227 billion yuan; loss per share.

During the reporting period, the pig sector remained the company's largest source of revenue, with sales revenue of 7.829 billion yuan, down 20.7% year on year. The average sales price of commercial pigs was 10.4 yuan/kg, down 30.9% year on year. During the reporting period, the pressure on performance was mainly due to the continued slump in the pig market and the sharp decline in commercial pig sales prices over the same period last year.

Facing the downward cycle of the market, the company insists on technological innovation as the core driving force and combining lean operations to achieve continuous optimization to increase efficiency and reduce costs. The margin of loss per head is superior to that of most peers, and the resilience of operations to the cycle continues to be prominent.

The company focuses on the three key technical tracks of seed breeding, feed nutrition, and epidemic prevention and control, and continues to step up R&D implementation and technological transformation efforts to improve the quality and efficiency of the entire breeding process, control costs and reduce consumption through scientific and technological innovation, forming a core competitive barrier that distinguishes the industry.

Relying on a mature scientific and technological innovation system, the company continues to deepen lean management of the entire breeding process, focusing on precise efforts in key areas such as increasing efficiency and reducing costs in the weaning process, reducing consumption and efficiency in the fattening process, opening up a comprehensive link from technology implementation to efficiency transformation, and achieving two-way upgrading of production efficiency and cost control.

During the reporting period, the company comprehensively restructured the farming management system with digital and intelligent technology, and used financial hedging tools to smooth cycle fluctuations to ensure operational soundness in all aspects. On the breeding management side, the company is speeding up the construction of smart pig farms and iterative upgrading of IT systems. Relying on digital tools such as intelligent breeding platforms, automatic feeding equipment, and AI intelligent inspection robots, the company gradually pilots the digitization of the entire process of breeding, feeding, biosafety, and on-site control, with the aim of promoting the transformation of breeding management from traditional “experience-driven” to “data decision-making”.

On the risk hedging side, the company continues to flexibly use financial derivatives such as pig futures to establish a normalized and standardized hedging mechanism to effectively hedge the risk of price fluctuations in the pig cycle and smooth the annual profit curve.