Founder: The sales volume of live pigs has significantly increased, while the average sale price has decreased.

Founder released a research report, stating that based on the judgment of the industry's supply and demand situation, the company believes that the current layout of the pig farming sector has entered the bottom phase of the cycle. With the continued accumulation of capital pressure on the breeding side and the deepening optimization of production capacity of scaled enterprises, the process of sow liquidation is expected to accelerate, laying the foundation for a new round of price increases starting in 2027. Key points from Founder: Slaughter volume: Overall slaughter volume of key listed pig companies increased month-on-month in March. According to the March pig sales briefing of 14 listed pig companies, a total of 16.08 million pigs were slaughtered in March, an increase of 37.4% month-on-month. Among the companies with an increase in slaughter volume, Leshan Giantstar Farming & Husbandry Corporation (+53.6%), Shenzhen Kingsino Technology (+49.7%), and Muyuan Foods (+46.7%) had relatively high month-on-month increases. The company believes that the increase in slaughter volume of key listed pig companies in March was mainly due to fewer slaughters by companies after the Spring Festival in February, leading to a seasonal increase in slaughters in March. Slaughter volume of key listed pig companies in March increased by 7.1% year-on-year. Among the 14 key listed pig companies, 10 had a positive year-on-year slaughter volume, with significant increases in Jiangxi Zhengbang Technology (+49.7%), Leshan Giantstar Farming & Husbandry Corporation (+40.0%), and Tangrenshen Group (+33.8%). Excluding the significant influence of Muyuan Foods, the remaining 13 key pig companies saw a year-on-year increase of 5.4% in slaughter volume in March. Compared to 2025, the cumulative slaughter volume of listed pig companies in the first three months of 2026 increased by 5.4% year-on-year. The company believes that this is mainly due to the inertia increase in slaughter caused by the increase in production capacity of pig companies in 2025. Slaughter weight The company's calculations show that the average slaughter weight of key pig companies in March increased by 4.3% month-on-month. The average slaughter weight of pigs from 10 key listed pig companies was approximately 127.5kg/head, showing a noticeable month-on-month increase. Among them, Tecon Biology Co. Ltd (+15.8%), Muyuan Foods (+7.1%), Leshan Giantstar Farming & Husbandry Corporation (+6.5%), and Zhejiang Huatong Meat Products (+6.5%) saw increases in average slaughter weight. The significant increase in the average slaughter weight of key listed pig companies in March is believed to be mainly due to the impact of the Spring Festival. During the Spring Festival, pig companies were passively mandating slaughters, coupled with weak market demand and low pig prices in March, leading to an increase in pig weight due to passive mandating of pig herds. Average selling price In March, the average selling price of slaughtered pigs from 13 key listed pig companies was 9.96 yuan/kg, a decrease of 13.06% month-on-month. The company believes that the low pig prices in March were a result of both supply and demand factors. On the supply side, the year-on-year increase in slaughter volume of pig companies in March exerted pressure, while on the demand side, the post-Spring Festival period coincided with a weak demand season, resulting in lower pig prices in March. Risk warning: Risks of feed price fluctuations, risks of environmental policy changes, risks of intensified mandating of slaughters on the breeding side leading to short-term price fluctuations.