Analysis of the Fixed Asset Turnover Trend of Muyuan Foods Co., Ltd. (002714.SZ)

Based on the collected financial data, I will provide you with a detailed analysis of the fixed asset turnover trend of Muyuan Foods Co., Ltd. over the past five years.

---

Year	Operating Revenue (CNY 100 million)	Fixed Assets (CNY 100 million)	Fixed Asset Turnover	YoY Change	Industry Average	Gap vs. Industry
2020	562.77	485.23	1.16	-	0.85	+0.31
2021	788.90	1106.54	0.71	-38.53%	0.92	-0.21
2022	1248.26	1063.59	1.17	+64.62%	1.05	+0.12
2023	1108.61	1121.50	0.99	-15.77%	0.88	+0.11
2024	1379.47	1067.51	1.29	+30.73%	1.15	+0.14

---

The fixed asset turnover of Muyuan Foods Co., Ltd. rose from

in 2020 to in 2024, representing an overall increase of approximately , showing a medium- to long-term upward trend [1][2].

• 2020-2021 Decline Period
  : The turnover rate dropped from 1.16 to 0.71, a decrease of 38.53%. The main reason was the company’s large-scale capacity expansion: fixed asset investment surged from CNY 48.5 billion to CNY 110.65 billion, an increase of over 128%, while operating revenue only grew by 40% during the same period, leading to temporary overcapacity [2].

• 2022-2024 Recovery and Upward Period
  : As new production capacity was gradually put into operation and generated benefits, the turnover rate rebounded sharply. It reached
  1.29
  in 2024, hitting a five-year high, mainly benefiting from:
  • Continuous decline in breeding costs (total cost reached CNY 13/kg)
  • Recovery in hog prices
  • Improvement in capacity utilization

The fixed asset turnover of Muyuan Foods Co., Ltd.

in most years:

• 2020: 0.31 higher than the industry average
• 2022: 0.12 higher than the industry average
• 2024: 0.14 higher than the industry average

---

Indicator	Value	Analysis
Average Turnover Rate	1.07	Higher than the industry average
Highest Value	1.29 (2024)	Capacity utilization efficiency reaches optimal level
Lowest Value	0.71 (2021)	Trough during capacity expansion period
Fluctuation Range	0.58	Obvious cyclical characteristics

---

1. Positive Factors
   :
   • The turnover rate hit a record high in 2024, indicating continuous improvement in the company’s capacity efficiency
   • The scale of fixed assets has stabilized (approximately CNY 106.7 billion), and capital expenditure has slowed down, implying improved asset utilization
   • Operating cash flow has improved significantly, with net operating cash flow reaching CNY 29.178 billion in 2024 Q1-Q3 [3]

2. Risk Factors
   :
   • Cyclical fluctuations in the hog breeding industry will still affect revenue, thereby impacting the turnover rate
   • If hog prices decline, it may lead to a drop in revenue and a pullback in the turnover rate

3. Long-term Outlook
   :
   • With the deepening of the company’s “full industry chain integration” model, the fixed asset turnover rate is expected to remain at a high level
   • The development of the slaughtering and meat products segment is expected to further improve asset utilization efficiency

---

Chart Notes:

• Top Left
  : Comparison of fixed asset turnover and industry average, showing that Muyuan Foods Co., Ltd. outperforms the industry overall
• Top Right
  : Changes in operating revenue and fixed asset scale, fixed assets stabilized after 2021
• Bottom Left
  : YoY change in turnover rate, strong rebound in 2022
• Bottom Right
  : Gap vs. industry average, maintained a positive gap in most years

---

[1] Eastmoney - Muyuan Foods Co., Ltd. Financial Data (https://data.eastmoney.com/stockdata/002714.html)

[2] AVIC Securities Research Institute - Review of Muyuan Foods Co., Ltd.'s 2021 Annual Report and 2022 Q1 Report (https://pdf.dfcfw.com/pdf/H3_AP202205011562733767_1.pdf)

[3] Guosen Securities - Investment Research Report on Muyuan Foods Co., Ltd. (https://pdf.dfcfw.com/pdf/H3_AP202411031640688705_1.pdf)