6,093 employees of Muyuan Group received equity incentives, and the per capita floating profit was 390,000 RMB

Recently, the equity incentive plan disclosed by Muyuan shares has also attracted market attention. If the assessment target is completed, 6,093 employees will receive half-price equity incentives, and the current per capita floating profit is 390,000 yuan.
1. Muyuan Co., Ltd.: It is false information that "the company generally reduces salaries by 10%-40%" on the Internet

Recently, a netizen posted, "At the same time as the equity incentives, Muyuan Group has reduced its salary. It is understood that in addition to breeding technicians, the logistics and cadres of Muyuan's salary have dropped to varying degrees, with a maximum drop of 40%."

On the evening of February 19, Muyuan shares publicly responded to rumors of salary cuts on the interactive platform, saying that there was no general salary reduction for the company's employees.

Muyuan Co., Ltd. stated that the Internet rumors that "the company generally reduces wages by 10%-40%" are false information. The company's per capita salary has remained stable recently, and there is no general salary reduction. The company implements an assessment plan linked to results. The salary change of an individual employee in a certain month is affected by factors such as the individual assessment result and the performance of the team they belong to.

However, in response to the above responses, some netizens also commented that at a time when the pig farming industry is generally losing money, salary reduction is a normal financial operation, which can play a role in increasing income and reducing expenditure.

2. The goal of cost reduction in 2022 is 13 yuan/kg

It is worth noting that while replying to online rumors, Muyuan shares held a conference call on February 17, with more than 20 institutions participating, including well-known institutions Bosera Fund, Oriental Harbour, Gao Yi Asset, China Asset Management, Southern Asset Management. , SDIC UBS Fund, Qianhai Open Source Fund, Xingquan Fund, Tianhong Fund, etc.

In the question-and-answer session of the meeting, Muyuan Co., Ltd. stated that the company's current cost is about 15 yuan/kg, and the company's goal of reducing costs in 2022 is to achieve a full cost of 13 yuan/kg in stages.

Regarding the trend of pig prices in the later period, Muyuan Co., Ltd. said that after the Spring Festival, it is in the off-season of consumption, and the overall pig price is low. It is expected that the pig price will improve slightly in the second half of the year. Since last year, the company has taken relevant measures to cope with the drop in pig prices, mainly by adjusting the pace of construction. At the same time, continue to optimize the internal management level to improve the company's breeding performance.

3. Monthly operating expenses are 6 billion to 6.5 billion yuan

In the conference call, Muyuan said that by the end of 2021, the company has built a breeding capacity of more than 70 million heads, and the number of sows that can be bred is 2.831 million. It is expected that the number of sows that can be bred in 2022 will increase slightly compared with 2021.

According to the company's current business scale, the monthly operating expenses are 6 billion to 6.5 billion yuan, mainly including procurement expenses, salary expenses and other expenses. At present, the company has no new investment in fixed assets, and only a small number of projects are under construction. If the pig price and operating environment improve significantly in the future, the company will consider whether to expand production.

Regarding the question of the profit situation and future planning of the slaughtering business, Muyuan Co., Ltd. responded that the company's slaughtering segment will not be profitable in 2021, mainly due to the high upfront costs for the construction and commissioning of multiple slaughterhouses in 2021 and the losses caused by the falling market prices. . At present, the slaughtered products are mainly white strips of meat and cut meat, of which white strips account for a relatively high proportion.

The company conducts slaughtering layout in accordance with the idea of building slaughter plants in areas with intensive breeding capacity. At present, the slaughtered pigs are all self-propagated and self-healthy pigs in the company's pig breeding sector. At present, the company has no specific profit target in the slaughtering business segment. The company will support the company's slaughtering business to achieve profitability in 2022 through various measures such as improving capacity utilization, expanding sales channels, optimizing sales structure, and reducing production costs.

4. 6,093 employees received half-price equity incentives, with a per capita floating profit of 390,000

Recently, the equity incentive plan disclosed by Muyuan shares has also attracted market attention.

The company plans to grant 81.08 million restricted shares to 6,093 incentive objects, accounting for 1.54% of the company's total share capital. The grant price is 30.52 yuan per share, which is about 50% of the company's latest stock price.

That is to say, if the assessment target is fulfilled, more than 6,000 employees will be able to obtain the company's stock at a price of 30.52 yuan per share. As of the close on February 18, the stock price of Muyuan shares was 59.99 yuan per share. If calculated at this price, more than 6,000 incentive objects have a total floating profit of 2.389 billion yuan, and the per capita floating profit is 390,000 yuan.

Of course, in order for employees to obtain the above-mentioned shares, the premise is that they must complete the assessment objectives. At the company level, the annual performance assessment objectives are: based on the sales volume of live pigs in 2021, the growth rate of live pig sales in 2022 is not less than 25%; based on the sales volume of live pigs in 2021, the growth rate of live pig sales in 2023 is not low at 40%.

Data show that in 2021, Muyuan shares will sell a total of 40.263 million live pigs, a year-on-year increase of 122%. Among them, there were 36.887 million commercial pigs, 3.095 million piglets and 281,000 breeding pigs.

Regarding the progress of the above-mentioned equity incentive plan, Muyuan Co., Ltd. stated on February 17 that the company is making steady progress in accordance with relevant business processes, and it is expected that the grant and registration of the first incentive part will be completed in the near future.