(Yicai Global) Feb. 24 -- Wens Foodstuff Group, one of China’s largest pig farming companies, turned gains into losses last year due to falling hog prices and rising feed costs.

The agricultural company reported CNY13.3 billion (USD2.1 billion) in net loss in 2021, according to the Guangdong province-based firm's earnings report released yesterday. In 2020, the company had posted CNY7.4 billion (USD1.2 billion) in net profit.

Wens sold about 13.2 million hogs last year at a price of CNY17.39 (USD2.80) per kilogram on average, down 48 percent from a year ago, leading to a great loss in its pig farming business, according to the report.

Revenue dropped 13 percent to CNY65 billion last year from 2020. Amortization of equity incentives cost the company CNY500 million (USD79.2 million) and biological asset impairment tallied about CNY2.1 billion. Funding costs increased due to the sector's downturn.

Going forward, Wens will continue its efforts in pig farming, it said. The company will improve its biosafety system and the quality of sows, as well as raise the share of marketable hogs. It will also cut its costs.

The firm's poultry business was doing better. The market was picking up and Wens' output remained high for several straight months. The company sold around 1.1 billion chickens last year, up nearly 5 percent. Moreover, it sold 58 million ducks, up 2 percent. Thus, its poultry business was profitable.

Shares of Wens [SHE: 300498] opened 0.9 percent lower at CNY20.01. The stock price has risen 10 percent over the past 12 months.

Editor: Emmi Laine, Xiao Yi