Fengxiang Co. (09977.HK) announced on August 25th that in the first half of 2024, the group achieved sales revenue of 2.654 billion yuan, an increase of 8.9% year-on-year. The net income was 60.1 million yuan, a decrease of 26.8% year-on-year. The group benefits from its multi-channel layout, with continued growth in export business and important customer business. The refined management by the management team and all employees has improved production efficiency and reduced costs. The decrease in raw material prices and the improvement in farming efficiency have further reduced farming costs. Despite the rise in the sales volume of chicken products, the weak consumption of chicken meat and the decline in the average selling price of chicken products have led to a decrease in net income.

In the first half of 2024, the white feather chicken industry is in a "continuing bottoming out" phase due to the dual impact of supply and demand. In the farming process, raw material prices such as corn and soybean meal continue to decline, further improving farming costs. In the processing and sales process, chicken consumption is weak and all channels are performing poorly, resulting in chicken product prices reaching a new low in nearly 3 years.

In the first half of 2024, Fengxiang Co. adhered to three "continuing" development initiatives, fully leveraging the advantages of its integrated industry chain business model and multi-channel layout. It strengthened the cohesion with important customers, focused on refined management in various aspects, continued to reduce costs and improve efficiency, and achieved significant improvements in overall operational management.