Xiantan’s estimated net profit reached 950-1.05 billion Yuan In 2019: 02-07-2020

Shandong Xiantan Co., Ltd. A China-based company principally engaged in cultivation, slaughtering, processing and sale of broilers released 2019 annual results notice and according to it, the company reached the expected earnings of 9.5-1.05 billion Yuan. According to the results, the company has experienced an increase of 136.34%-161.22% in its net profit compared to the earlier profit of 4.02 billion Yuan.

Xiantan shares said that the reason for the change in performance during the reporting period is due to the tight supply of chicken and the replacement of demand, the prosperity of the white feather broiler industry that continued to rise. According to the report, the sales of chicken products Xiantan shares 1254.04million, the chain rose 10.56%, the company earned sales revenue of 3.11 billion yuan, up 11.2%. The shares of the company pointed out that the main reason for the year-to-year increase in sales of commercial chicken was the expansion of the breeding scale.

In August 2019, Xiantan considered and approved Zhucheng’s “100 million broiler chicken industry ecological project”. The company is planning to invest 600 million Yuan by self-raising finds or through introducing other investors and with the help of Zhucheng People’s Government. Moreover, the company is also planning to raise up to 1.4 billion Yuan through share private placement to fund a chicken breeding project, which will further contribute towards the growth of the company in 2020.

Xiantan and other poultry companies in China are experiencing vigorous growth specifically in the past two decades, both in terms of poultry number and level of output per bird. Furthermore, recent scenarios such as the epidemics are also favoring the growth of these companies. The growth in the poultry section can also be associated with a higher level of production with the spread of an intensive system in which food conversion ratios are higher.  The poultry section has shown much faster and better growth than the pork production mainly because of great changes in the structure of production and shift from smallholder bird keeper to large enterprises that are now covering most of the poultry supply.

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