Pig farming beats selling houses?Luo Niushan’s net profit drops sharply, plans to divest real estate to focus on pig business

Pig farming beats selling houses?Luo Niushan’s net profit drops sharply, plans to divest real estate to focus on pig business
Sauna Night News (Reporter Yan Xia) On March 31, Luo Niushan released its 2019 annual report.In 2019, Luo Niushan will increase revenue without increasing profits, and its operating income will be approximately 11.6.4 billion yuan, an increase of 3 from the same period in 2018.84%; the net profit attributable to shareholders of the listed company is about 3003.830,000 yuan, 92 compared with the same period in 2018.27%; the net profit attributable to shareholders of listed companies is about 997.260,000 yuan, an increase of 339 from the same period in 2018.04%.As a pioneer and leader in animal husbandry in Hainan Province, Luoniu Mountain has now formed a system of integrated breeding, pig breeding, feed industry, pig epidemic prevention, slaughtering and processing, cold chain logistics, environmental protection utilization, scientific research promotion, food quarantine, etc.An integrated “full industry chain” business development model.Absolutely, pork prices have skyrocketed in 2019, and many listed pig companies have made a lot of money. Why is Luo Niushan here?This should start from Luo Niushan’s business structure. It has four major business segments in 2019: big agriculture, cold chain business, real estate business and education business. Among them, the big agriculture sector is the core business of listed companies and the main source of income and profit.From the perspective of operating income composition, in 2019, the average price of livestock breeding, slaughtering, processing and education in Luoniushan increased, while the real estate industry had the highest gross profit margin but insufficient revenue.3 ppm, an average of 66 years.63%.(The screenshot is from Luo Niushan’s 2019 annual report). The real estate budget policy has the characteristics of tightness, that is, the demand side highlights the strengthening of supervision and resolutely prevents speculative real estate speculation; the supply side increases effective supply through the development of housing rental markets and other alternatives.In the context of continuous strictness and consistency, the sales price of the real estate market has gradually stabilized.”According to the data from the National Bureau of Statistics, the growth rate of real estate development investment in real estate development enterprises in the past five years has remained below 10%, and it is expected that it will further increase in the next five years.Luo Niushan said.In this context, Luo Niushan decided to make a strategic transformation, “gradually transfer real estate-related business to the company’s controlling shareholder Luo Niushan Group Co., Ltd., to achieve the divestiture of the real estate business segment.It is reported that after the deletion is completed, Luo Niushan will no longer be involved in real estate business.”The divestiture of the real estate business will help to further optimize the company’s industrial structure, focus on value and capital, and focus on the main business, in line with the company’s medium- and long-term development strategy.Luo Niushan said.In the future, Luo Niushan’s long-term development strategy will focus on the development principles of “the hog industry returns to the first echelon of the aquaculture industry” and “the meat business becomes a regional leading enterprise”, focusing on building the main business with large agriculture as the core sector.”The company will seize the pork market this time, quickly expand the scale, expand the high profits within the pig cycle, and adhere to the cost-leading strategy, expand production around the established strategic goals, and gradually establish the scale advantage of the pig industry; in the meat business, comprehensiveAbandon the business to be slaughtered, transform into a self-operated business, accelerate the layout of the whole island, cooperate with the construction of the slaughtering site, take advantage of centralized procurement, and expand profit margins; the cold chain business will continue to strengthen the operating model and gradually form a replicable business model of extended output.Luo Niushan said.From the point of view of capital investment, at the end of 2019, Luo Niushan began to add heavy funds to layout pigs.On December 17, 2019, Luo Niushan announced its wholly-owned Sun company Sanya Luo Niu Shan animal husbandry investment3.US $ 2.5 billion to build a project of 150,000 heads of modern circular agriculture demonstration base in Luozhou Mountain Yazhou.”After the project is completed, it will help the company to expand the scale of pig breeding, increase the company’s regional market share, further enhance the company’s comprehensive competitiveness, benefit the company’s sustainable development, and produce good economic and social benefits.Luo Niushan said.Editor Xu Chao proofreading Liu Jun