- In its preliminary earnings report, the Guangdong Wens Foodstuff Group (300498.SZ) has announced it expects an 83%-104% increase in net profit for 2016 to RMB 11.36-12.65 billion, as reported by Securities Times.
- The company also expects a non-recurring loss of between RMB 88 million and RMB 49 million.
Why It Matters:
- The Guangdong Wens Foodstuff Group is a Guangdong based food company engaged in the breeding and sale of chicken and pigs. The company is listed on the second board of the stock market, and its RMB 11 billion net profit makes it the most profitable company among second-board listed firms.
- The company attributes its fast growth to stable industry performance, rising pork prices, and declining feed costs. According to local media, the company wants to franchise its business model and plans to offer fresh meat to consumers in the city of Shenzhen. The number of pilot stores could jump from 50 to 300 by the end of the year.
- The company is also engaged in the financing business. The China Banking Regulatory Commission (CBRC) has just approved the establishment of Meizhou Keshang Bank, in which Guangdong Wens Foodstuff Group has taken a 12.5% stake.