On October 18, Muyuan Food Co., Ltd. (Muyuan shares, 002714.SZ) released a third-quarter report that the operating income of the third quarter was 14.74 billion yuan, a year-on-year decrease of 18.68%, the top three Quarterly operating income was 56.28 billion yuan, an increase of 43.71% year-on-year; Net profit attributable to shareholders of listed companies in the third quarter was -820 million yuan, a year-on-year decrease of 108.05%. The profit in the first three quarters was 8.7 billion yuan. A year-on-year decrease of 58.53%. At the end of the third quarter, Muyuan’s total assets were 169.2 billion yuan, an increase of 37.98% from the 122.6 billion yuan at the end of the second quarter.
The three quarterly reports show that from January to September, Muyuan sold 26.106 million live pigs, including 22.921 million commercial pigs, 2.929 million piglets and 256,000 breeding pigs.
It’s worth noting that as of the end of September, Muyuan’s accounts receivable increased by 284.84% from the end of the previous year. Muyuan said that it was mainly due to slaughter and meat business. Due to the expansion of scale; monetary funds decreased by 31.82% compared with the end of the previous year. Muyuan said it was mainly due to the increase in payment funds for production and operation.
On the same day, Muyuan shares also disclosed a non-public additional issuance plan, which plans to issue to the company’s controlling shareholder Muyuan Industrial Group Co., Ltd. 149,216,612 shares, the amount of raised funds does not exceed 6 billion yuan (including the number), and the issue price is 40.21 yuan per share.
For the purpose of this non-public offering, Muyuan said that the first is to optimize the financial structure and reduce financial risks. At the end of 2018, 2019, 2020 and September 2021, Muyuan’s asset-liability ratio was 54.07%, 40.04%, 46.09% and 57.77%, respectively.
The second is to enhance the company’s strength to meet future business development needs. Muyuan said that with the expansion of its business scale, the capital expenditure and working capital required for the company’s normal operation and sustainable development will increase rapidly. In addition to fixed asset investment such as the construction of aquaculture projects, a large amount of liquidity is also required to ensure the purchase of raw grains, etc. Important daily production and operation activities. Supplementing working capital will help improve the company’s comprehensive operating strength and enhance the company’s market competitiveness.
In addition, Muyuan said that the non-public offering can show the company’s controlling shareholder and actual controllerThe firm confidence in the company’s future development is conducive to ensuring the company’s sustained, stable and healthy development, and it is also conducive to sending positive signals to the market and small and medium shareholders.
Muyuan’s actual controllers are Qin Yinglin and Qian Ying, who directly and indirectly hold 53.88% of the company’s equity.
As of today’s close, Muyuan shares reported 56.01 yuan per share, an increase of 1.10%.