At the "10th Zhitong Finance Listed Companies Awards Ceremony," DEKON AGR (02419) was honored with the "Best Stock Connect Company" award. Since its inception in 2016, this event has grown into one of the most influential annual gatherings in the Hong Kong and U.S. stock markets. As a leading integrated livestock and poultry farming enterprise in China, DEKON AGR secured this prestigious accolade for the first time, reflecting its industry leadership, robust corporate governance, stable operational fundamentals, and consistent returns to investors.
The award underscores DEKON AGR’s differentiated business model in hog farming, which combines light-asset advantages with cost efficiency. Building on its traditional contract farming approach, the company innovatively introduced the "No. 2 Family Farm" model, outsourcing both sow breeding and piglet fattening to partner farmers. This strategy significantly reduces capital expenditures on fixed assets, alleviates the burden of heavy-asset expansion, and enables rapid scaling with optimized resource allocation. By integrating farmers into the industrial chain, DEKON AGR fosters shared growth, creating a sustainable win-win ecosystem.
Technological innovation has been pivotal to DEKON AGR’s competitive edge. The company broke the industry’s "import-degradation" cycle in breeding by establishing an independent, high-efficiency breeding system. Additionally, precision nutrition and dynamic feed formulation technologies have further enhanced farming efficiency.
Under the "No. 2 Family Farm" model, DEKON AGR has steadily reduced hog production costs. Institutional research shows that its fully loaded cost for market hogs dropped to approximately RMB 11.9/kg in October, down RMB 0.4/kg month-on-month and significantly lower than H1 2023’s RMB 12.4/kg, with further reductions anticipated. The company now ranks among the industry’s top-tier in cost efficiency, benefiting from short-term productivity gains and long-term initiatives like genetic optimization, refined management, and regional consolidation.
Amid regulatory shifts emphasizing "farmer rights protection" and "corporate innovation," DEKON AGR’s tech-driven, farmer-inclusive model positions it as a key beneficiary. With clearer capacity adjustment policies, industry profitability is expected to recover, favoring cost leaders like DEKON AGR, which excels in both operational resilience and earnings flexibility.
The "Best Stock Connect Company" award not only validates DEKON AGR’s light-asset, low-cost approach and social impact but also signals accelerating value reassessment. As policy and cycle dynamics align, the company’s long-term investment potential becomes increasingly compelling, warranting close investor attention.
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