DEKON AGR (02419) released its mid-term results, with operating income of 10.089 billion yuan. Focusing on innovation in aquaculture technology, it has established a core barrier for cost reduction through technology.

DEKON AGR (02419) announced its interim results for the six months ended June 30, 2026. The group achieved operating revenue of RMB 10.089 billion, a year-on-year decrease of 13.74%; a net loss of RMB 1.305 billion, compared to a net profit of RMB 1.227 billion in the same period last year; and a loss of RMB 3 per share. During the reporting period, the pig farming segment remained the company's largest source of income, with sales revenue of RMB 7.829 billion, down 20.7% year-on-year, and an average selling price of 10.4 RMB/kg for commercial pigs, down 30.9% year-on-year. The pressure on performance during the reporting period was primarily due to the continued sluggish pig market and a significant decline in the selling price of commercial pigs compared to the same period last year. In response to the market downturn, the company remains committed to driving core technological innovation and continuously optimizing efficiency and cost reduction through lean operations. The loss per head of livestock is better than that of most of its peers, demonstrating sustained operational resilience against economic cycles. The company focuses on three key technological tracks: breeding sources, feed nutrition, and disease prevention and control. It continues to strengthen its research and development implementation and technology transformation efforts, using technological innovation to improve quality and efficiency throughout the entire farming process and control costs, thereby establishing core competitive barriers distinctive from the industry. Leveraging its mature technological innovation system, the company continues to deepen the lean management of the entire farming process, focusing on enhancing efficiency and reducing costs during the weaning phase and addressing consumption reduction and efficiency enhancement in the fattening phase. It aims to comprehensively bridge the gap between technological implementation and benefit transformation, achieving a dual upgrade in production efficiency and cost control. During the reporting period, the company comprehensively restructured its farming management system using digital and intelligent technologies, along with financial hedging tools to smooth out cyclical fluctuations and ensure operational stability. In terms of farming management, the company accelerated the construction of smart pig farms and the iterative upgrade of IT systems, relying on digital tools such as intelligent breeding platforms, automated feeding equipment, AI intelligent inspection Siasun Robot & Automation, gradually piloting the digitization of the entire process of breeding, feeding, biosecurity, and on-site management. This aims to shift farming management from a traditional "experience-driven" approach to a "data-driven" decision-making process. On the risk hedging front, the company continues to flexibly utilize financial derivatives such as pig futures, establishing a normalized and standardized hedging mechanism to effectively hedge against the price volatility risk of the pig cycle, thereby smoothing the annual profit curve.