A Comparative Research About The Financial Behavior And Performance Between Muyuan And Wens Company

At present,the pork production and consumption in China account for a considerable proportion in the world.Due to the influence of dietary habits of Chinese residents,pork is usually used as the main source of animal protein for maintaining good health.Because the development scale of the pig-breeding industry in China has an impact on the income and consumption level of Chinese farmers,it has always been highly valued by Chinese.Now,the development condition of the pig-breeding market in China is mainly reflected by the fluctuation of pork market sale prices.The characteristics of the pig-breeding industry show that the fluctuation of pork prices is an unavoidable market phenomenon,and pig-breeding enterprises cannot ignore the existence of the pig cycle,which is also the biggest factor affecting the final profit of pig-breeding enterprises.From 2010 to now,the pork price fluctuations in China can be roughly divided into three cycles,2010-2014,2015-2018,and 2019-present.In 2019,under the influence of the market environment such as the African Swine Fever,the market price of pork continued to rise.The soaring pork price accelerated the growth of operating profits of many pig-breeding enterprises including Muyuan and Wens.In this round of pork price rise stage,operating net profit in Muyuan doubled which surpassing that in Wens,a major pigbreeding company,entered the 100 billion market value ranks,and became the top company in terms of market value of the pig-breeding industry and pig production.Therefore,this paper takes the two companies,Muyuan and Wens,as the research subjects,and through the comparative analysis,the paper aims to explore the successful experience of large-scale pig-breeding enterprises which adapt to the changing market successfully,and provide some development inspirations for more pig-breeding enterprises.This paper mainly compares and analyzes the similarities and differences between the financial behavior and operating performance in Muyuan and Wens during the period of rising and falling pork prices,as well as the changes in financial behavior and operating performance of each enterprise during the period of rising and falling pork prices.According to the comparative analysis of the financial behaviors which are about financing,investment and dividend distribution of the case enterprises during the period of rising and falling pig prices,as well as the results which analyze the business performance quantitatively by factor analysis,the conclusions are drawn:1.The increase of the market price of pork has a positive impact on the financing,investment scale,current liability ratio and industrial investment ratio in Muyuan,as well as in Wens.When the price of pork rises,the financing scale of the two companies increases,and the companies are more inclined to external financing on debt financing.On the contrary,in the capital structure comparison,the asset-liability ratios of the two companies during the period of falling pork prices were higher than those during the period of rising pork prices.2.No matter whether the price of pork rises or falls,the financing scale,asset-liability ratio and industrial investment ratio in Muyuan are higher than that in Wens.In contrast,the current liabilities ratio and external investment scale in Wens are larger than those in Muyuan during the fluctuation of pork price.3.As a whole,the operating performance in Muyuan and Wens shows a synchronous trend with the fluctuation of the sale price in the pork market,the overall growth rate of the operating performance in Wens from 2010 to 2020 is slower than that in Muyuan.