By Gina Lee
China’s Muyuan Foodstuff (SZ:002714)reported a net profit of CNY 4.1 billion ($578.86 million) for the first quarter of 2020 in its filing at the Shenzhen Stock Exchange on Sunday.
It reported a CNY 540.9 million net loss a year earlier.
The company, China’s second largest pork producer, attributed the profits to the agreements it signed for hog breeding projects. The breeding projects helped to steady supply as African Swine fever hit herds across the country in August 2019, resulting in a massive cull of over 950,000 pigs.
The Food and Agriculture Organzation (FAO) said cases have also been detected in neighboring Mongolia and Vietnam.
The more recent COVID-19 pandemic also brought challenges as wet markets and slaughterhouses shut down across China.
Muyan’s stock jumped 5.21% to CNY135.09 ($19.19) by 12:57 AM ET (5:57 AM GMT).
