Quick Facts / Company Snapshot
- Company Name: WH Group Limited (萬洲國際有限公司)
- Stock Code: 288 (Hong Kong Stock Exchange)
- Headquarters: Hong Kong (Corporate), with major operations in China, the U.S., and Europe
- Total Revenue (2024): US$25,941 million
- Operating Profit (2024): US$2,404 million
- Net Profit Attributable to Owners (2024): US$1,612 million
- Total Assets: US$19,841 million
- Net Assets: US$11,361 million
- Total Equity: US$11,361 million
- Employees: Approximately 102,000 globally
- Packaged Meats Sales Volume (2024): 3,100 thousand metric tons
- Pork Sales Volume (2024): 3,765 thousand metric tons
- Hogs Processed (2024): 45,353 thousand heads
- Packaged Meats Revenue Contribution: 52.6% of total revenue
- North America Revenue Contribution: 53.0% of total revenue
- China Revenue Contribution: 32.5% of total revenue
- Europe Revenue Contribution: 14.5% of total revenue
- Dividend Per Share (2024): HK$0.50 (Total for the year)
- Basic Earnings Per Share: US 12.56 cents
- Key Subsidiaries: Smithfield Foods, Shuanghui Development, Morliny Foods
Company Overview
WH Group Limited is the largest pork company in the world, holding leading positions in the largest pork producing and consuming markets globally: China, the United States, and Europe. The company operates a vertically integrated platform that encompasses the entire pork industry value chain. This extensive chain includes hog production, hog slaughtering, and the processing and distribution of packaged meats and fresh pork.
The Group’s strategic vision focuses on maintaining global leadership in the meat industry. By leveraging its integrated industrial chain, WH Group actively expands its market presence and optimizes its industrial structure to cope with external pressures and market volatility. The company is engaged in delivering positive contributions to building a healthy and vibrant industry chain, alongside suppliers and distributors, while providing sustainable protein choices for consumers globally.
WH Group’s operations are diversified across multiple geographical regions, each with unique market dynamics. The company adapts to changes in the market environment by seizing opportunities and optimizing its industrial footprint. With a workforce of approximately 102,000 employees, the Group manages a vast network of production facilities and logistics centers, ensuring the timely and safe delivery of high-quality protein products to a massive global customer base.
Business Segments
WH Group organizes its operations into three primary business segments: Packaged Meats, Pork, and Others. These segments represent the core revenue streams and operational focus of the company.
1. Packaged Meats
- Segment Revenue (2024): US$13,655 million
- Percentage of Total Revenue: 52.6%
- Operating Profit (2024): US$2,234 million
- Sales Volume: 3,100 thousand metric tons
Operational Scope:
Packaged Meats is the core business of WH Group and the primary driver of its profitability. This segment involves the production, wholesale, and retail sales of a wide variety of packaged meat products. These products principally include high-temperature and low-temperature meat products, which are marketed under a portfolio of well-known brands.
In-Depth Profile:
This segment consistently represents the strongest earnings contributor for the Group. In 2024, it accounted for 92.9% of the Group’s total operating profit. The business strategy for this segment focuses on “adjusting product mix, adjusting prices, and controlling costs.” By modernizing processing plants and expanding production facilities, particularly in North America and China, the Group ensures high utilization rates and operational efficiency. The annual production capacity for packaged meats stands at approximately 2.08 million metric tons in China, 1.60 million metric tons in North America, and 0.37 million metric tons in Europe.
2. Pork
- Segment Revenue (2024): US$10,343 million
- Percentage of Total Revenue: 39.9%
- Operating Profit (2024): US$356 million
- Sales Volume: 3,765 thousand metric tons
Operational Scope:
The Pork segment encompasses hog farming, slaughtering, wholesale, and retail sales of fresh and frozen pork. This segment serves as a critical upstream component of the value chain, supplying raw materials for the packaged meats segment while also selling fresh pork directly to external customers.
In-Depth Profile:
The Pork segment is sensitive to fluctuations in hog prices and commodity costs. In 2024, the segment achieved a significant turnaround, recording an operating profit of US$356 million compared to a loss in the previous year. This improvement was driven by favorable market conditions in the U.S. and operational reforms. The total number of hogs processed in 2024 was 45,353 thousand heads. The annual hog processing capacity is substantial, with 25.21 million heads in China, 30.68 million heads in North America, and 4.9 million heads in Europe.
3. Others
- Segment Revenue (2024): US$1,943 million
- Percentage of Total Revenue: 7.5%
- Operating Loss (2024): US$(186) million
Operational Scope:
The “Others” segment includes a diverse range of ancillary businesses that support the core meat operations. These activities include the slaughtering and sales of poultry, manufacturing and sales of packaging materials, provision of logistics and supply chain management services, production of flavoring ingredients and natural casings, and the operation of finance and property development companies.
In-Depth Profile:
This segment plays a strategic role in protein diversification and vertical integration. The poultry business, in particular, processed approximately 348 million heads of broiler, goose, and turkey in 2024, representing a 10.9% increase year-on-year. The logistics business operates 20 logistics parks across 15 provinces in China, ensuring efficient distribution. While currently operating at a loss due to corporate expenses and performance-related remunerations, this segment is integral to the Group’s long-term strategy of diversifying its protein portfolio and enhancing supply chain capabilities.
History and Evolution
WH Group’s journey is one of transformation from a local entity to a global conglomerate. The business has grown under the direction of Mr. Wan Long from a local state-owned enterprise, the Henan Luohe Meat Products Processing United Factory, established in May 1968 in Henan Province, China.
Over the decades, the company evolved into Shuanghui Group and later Shuanghui Development, becoming a dominant player in the Chinese meat industry. A pivotal moment in the company’s history was the acquisition of Smithfield Foods in 2013, a landmark transaction that positioned WH Group as a global leader with significant operations in the United States and Europe.
Following this strategic expansion, the company was listed on the Main Board of the Stock Exchange of Hong Kong on 5 August 2014. Since its listing, WH Group has continued to expand its global footprint through organic growth and strategic acquisitions, including the expansion into European markets through its subsidiary Morliny Foods. The company has continuously optimized its structure, spinning off European operations for independent management and completing the separate listing of its North American business, Smithfield, on the Nasdaq Global Select Market in January 2025 (post the 2024 financial year-end but noted in the context of corporate evolution).
Products and Services
WH Group offers a comprehensive range of protein products and related services, catering to diverse consumer tastes and industrial needs globally.
1. Packaged Meat Products
- Associated Segment: Packaged Meats
- Revenue Contribution: Included in US$13,655 million segment revenue
Profile:
This category includes a vast array of processed meat products such as ham, sausage, bacon, pepperoni, deli meats, and luncheon meats. The portfolio covers high-temperature meat products (shelf-stable) and low-temperature meat products (requiring refrigeration), catering to various consumption scenarios from breakfast to snacking and fine dining.
2. Fresh and Frozen Pork
- Associated Segment: Pork
- Revenue Contribution: Included in US$10,343 million segment revenue
Profile:
The Group produces and sells fresh and frozen pork carcasses and cuts. These products are sold to industrial customers, retailers, and distributors. The quality and safety of these products are ensured through the Group’s vertically integrated supply chain, managing everything from genetics and farming to slaughtering and processing.
3. Poultry Products
- Associated Segment: Others
- Revenue Contribution: Part of the US$1,943 million segment revenue
Profile:
As part of its protein diversification strategy, WH Group produces and sells poultry products, including chicken, turkey, and goose. In 2024, the volume of poultry processed grew significantly, highlighting the increasing importance of this category in the Group’s overall product mix.
4. Logistics and Supply Chain Services
- Associated Segment: Others
- Revenue Contribution: Part of the US$1,943 million segment revenue
Profile:
The Group provides extensive cold chain logistics and supply chain management services. With a network of logistics parks and a fleet of specialized vehicles, this service ensures the freshness and quality of meat products during transit, serving both internal needs and third-party customers.
5. Ancillary Products (Packaging, Flavorings, Biological Materials)
- Associated Segment: Others
- Revenue Contribution: Part of the US$1,943 million segment revenue
Profile:
To support its core meat production, the Group manufactures packaging materials, flavoring ingredients, and natural casings. Additionally, the Group is involved in the production and sale of biological pharmaceutical materials derived from porcine by-products, adding value to the slaughtering process.
Brand Portfolio
WH Group owns a rich portfolio of trusted brands that command strong market recognition in their respective regions.
Key Brands by Region
North America (Managed under Smithfield):
- Smithfield: The flagship brand known for premium pork products.
- Eckrich: Famous for smoked sausages and deli meats.
- Nathan’s Famous: Renowned for hot dogs.
- Farmland: A heritage brand offering bacon, ham, and fresh pork.
- Armour: Known for lunchmakers and meatballs.
- Farmer John: A regional favorite in the West Coast.
- Kretschmar: Premium deli meats and cheeses.
- John Morrell: A historic brand with a wide range of meat products.
- Cook’s: Leading brand for hams and smoked meats.
- Gwaltney: Offers bacon, hot dogs, and bologna.
- Carando: Specializes in classic Italian meats.
- Margherita: Known for Italian meats and pepperoni.
- Curly’s: Famous for pre-cooked BBQ meats.
- Healthy Ones: Focuses on heart-healthy deli options.
- Patrick Cudahy: Known for bacon and dry sausage.
- Pure Farmland: Plant-based protein options.
China (Managed under Shuanghui):
- Shuanghui (Twin Towers): The dominant meat brand in China, synonymous with high-quality sausages and fresh meat.
- Smithfield (China): Introduces American-style meat products to the Chinese market.
Europe (Managed under Morliny Foods):
- Morliny: A leading brand offering a variety of meat products.
- Berlinki: Famous for high-quality sausages.
- Krakus: A heritage brand known for ham and pickles.
- Argal: A Spanish brand acquired in 2024, specializing in charcuterie.
- Mazury: Regional brand offering traditional products.
- Yano: Offers a range of convenience meat products.
Geographical Presence
WH Group’s global footprint is balanced across the world’s most critical markets for pork production and consumption.
1. North America
- Region Revenue (2024): US$13,760 million
- Percentage of Total Revenue: 53.0%
- Operating Profit (2024): US$1,187 million
Profile:
North America is the largest revenue contributor for WH Group. The operations here are primarily conducted through Smithfield Foods. The U.S. pork industry is mature and concentrated, and WH Group benefits from a vertically integrated supply chain that acts as a natural hedge against commodity price fluctuations. The region hosts a massive infrastructure, including an annual hog processing capacity of 30.68 million heads and a packaged meats production capacity of 1.60 million metric tons.
2. China
- Region Revenue (2024): US$8,418 million
- Percentage of Total Revenue: 32.5%
- Operating Profit (2024): US$943 million
Profile:
China is the largest pork consumption market in the world. WH Group’s operations here are led by Shuanghui Development. Despite intense competition and fluctuating hog prices, the China segment remains a pillar of profitability. The Group utilizes its industrial chain advantage to expand its network, doubling its outlets and implementing cost-control strategies. The operational footprint includes 20 logistics parks and an annual hog processing capacity of 25.21 million heads.
3. Europe
- Region Revenue (2024): US$3,763 million
- Percentage of Total Revenue: 14.5%
- Operating Profit (2024): US$274 million
Profile:
The European operations are managed under Morliny Foods. This region comprises operations in countries like Poland, Romania, and Spain (following the acquisition of Argal). The European business focuses on tailoring products to local tastes while leveraging the Group’s global expertise. In 2024, this region saw a revenue increase of 24.7% in packaged meats. The region has an annual hog processing capacity of 4.9 million heads and a packaged meats capacity of 0.37 million metric tons.
Financial Performance Analysis
Consolidated Performance (2024 vs 2023)
WH Group demonstrated resilience and strategic agility in 2024. While total revenue experienced a slight decline, operating profitability surged, hitting a record high due to significant improvements in the Pork segment and sustained strength in Packaged Meats.
- Total Revenue: Decreased by 1.1% to US$25,941 million (2023: US$26,236 million).
- Operating Profit: Increased by 63.4% to US$2,404 million (2023: US$1,471 million).
- Profit Attributable to Owners: Increased by 142.7% (before biological fair value adjustments) to US$1,471 million.
- Basic Earnings Per Share: Increased to 11.47 US cents (before biological fair value adjustments) from 4.72 US cents in 2023.
Profit and Loss Analysis
- Revenue: US$25,941 million. The decrease was primarily attributed to a 3.0% decline in packaged meats sales volume and a 4.9% decline in pork sales volume. However, higher average selling prices partially offset the volume loss.
- Gross Profit: Increased to **US$5,200 million** (2023: US$5,125 million), driven by better margins in the pork business.
- Operating Profit Margin: Improved significantly to 9.3% (2023: 5.6%).
- Packaged Meats Margin: 16.4%
- Pork Margin: 2.5% (recovered from a negative margin of -3.3% in 2023)
- Net Profit: Profit for the year was **US$1,853 million**, a substantial increase from US$860 million in 2023.
- Distribution and Selling Expenses: Decreased to **US$1,845 million** (2023: US$1,977 million), reflecting effective cost control.
- Administrative Expenses: Increased to **US$1,001 million** (2023: US$889 million).
- Finance Costs: Decreased by 13.0% to US$147 million due to lower average interest rates on borrowings.
- EBITDA: US$3,280 million (after biological fair value adjustments).
Balance Sheet Analysis
- Total Assets:US$19,841 million as of 31 December 2024.
- Non-Current Assets: US$11,613 million, including Property, Plant, and Equipment of US$6,393 million.
- Current Assets: US$8,228 million, including Cash and Bank Balances of US$2,055 million and Inventories of US$2,805 million.
- Total Liabilities:US$8,480 million.
- Current Liabilities: US$4,391 million.
- Non-Current Liabilities: US$4,089 million, comprising mainly long-term borrowings.
- Total Equity: **US$11,361 million**, with US$10,661 million attributable to owners of the Company.
- Debt Position:
- Total Borrowings: US$3,330 million.
- Debt to Equity Ratio: 29.1%, improved from 30.5% in 2023.
- Net Debt to Equity Ratio: 11.0%, significantly down from 19.6% in 2023.
- Liquidity: The Current Ratio stands at 1.9 times (2023: 1.6 times), indicating a strong liquidity position. The aggregate unutilized banking facilities amounted to US$5,358 million.
Cash Flow Analysis
- Net Cash from Operating Activities: **US$2,519 million** (2023: US$1,617 million). The increase was mainly driven by the significant rise in earnings.
- Net Cash Used in Investing Activities: **US$612 million** (2023: US$663 million). This includes capital expenditures of US$707 million.
- Net Cash Used in Financing Activities: **US$984 million** (2023: US$1,175 million). This reflects net repayment of debts and dividend distributions.
- Net Increase in Cash and Cash Equivalents: **US$923 million** (2023: Net decrease of US$221 million).
Board of Directors and Leadership Team
Executive Directors
- Mr. WAN Long (Chairman): The visionary leader who transformed the company from a local factory to a global powerhouse. He chairs the Nomination, Food Safety, and Risk Management Committees.
- Mr. GUO Lijun (Chief Executive Officer): Responsible for the overall management and operation. He chairs the ESG Committee.
- Mr. WAN Hongwei (Deputy Chairman): Assists in strategic planning and serves on the ESG and Food Safety Committees.
- Mr. MA Xiangjie: Serves as the President of Shuanghui Development, overseeing operations in China.
Non-Executive Director
- Mr. JIAO Shuge: Provides strategic oversight and serves on the Remuneration Committee.
Independent Non-Executive Directors
- Mr. HUANG Ming: Chairman of the Remuneration Committee.
- Mr. LAU, Jin Tin Don: Member of Audit and other committees.
- Ms. ZHOU Hui: Chairman of the Audit Committee.
Senior Management
- Mr. CHAU Ho: Chief Legal Officer and Company Secretary.
- Ms. YAN Kam Yin: Chief Financial Officer.
- Mr. ZHOU Xiaoming: Vice President responsible for investment management.
- Mr. JIA, Sebastien Yutian: Vice President responsible for international trading business.
Subsidiaries, Associates, Joint Ventures
Key Subsidiaries (Top Revenue Contributors)
- Smithfield Foods, Inc.
- Ownership: 100% (During the 2024 review period; separate listing occurred in Jan 2025).
- Contribution: Operates the North American business.
- Profile: A U.S.-based global food company and the world’s largest pork processor and hog producer.
- Henan Shuanghui Investment & Development Co., Ltd.
- Ownership: 70.33%
- Contribution: Operates the China business.
- Profile: Listed on the Shenzhen Stock Exchange (000895), it is the largest meat processing enterprise in Asia.
- Morliny Foods Holding Limited
- Ownership: 100%
- Contribution: Operates the European business.
- Profile: A U.K. incorporated holding company managing operations across Poland, Romania, and other European nations.
- Rotary Vortex Limited
- Ownership: 100%
- Profile: An investment holding and trading company incorporated in Hong Kong.
Physical Properties (Offices, Plants, Factories)
WH Group operates a vast network of state-of-the-art facilities globally.
Production Capacity (2024)
- Packaged Meats Annual Capacity:
- China: 2.08 million metric tons (Utilization: 67.6%)
- North America: 1.60 million metric tons (Utilization: 87.0%)
- Europe: 0.37 million metric tons (Utilization: 117.1%)
- Hog Processing Annual Capacity:
- China: 25.21 million heads (Utilization: 40.8%)
- North America: 30.68 million heads (Utilization: 94.4%)
- Europe: 4.9 million heads (Utilization: 115.3%)
Logistics
- China: The Group owns 20 logistics parks across 15 provinces, covering the majority of the nation.
Biological Assets
- Hogs: Total of 12.6 million heads (11.7 million market hogs and 0.9 million breeding stock).
- Poultry: Total of 21.7 million birds (19.0 million broilers and 2.7 million breeding stock).
Segment-wise Performance
Packaged Meats Performance
- Revenue: Increased by 1.0% to US$13,655 million.
- Operating Profit: Increased by 9.0% to US$2,234 million.
- Performance Drivers: In Europe, revenue grew by 24.7% due to higher sales volumes and prices, aided by the acquisition of Argal. In North America, operating profit grew by 9.5% due to operational efficiencies and the recognition of Employee Retention Tax Credits.
Pork Performance
- Revenue: Decreased by 4.3% to US$10,343 million.
- Operating Profit: Turnaround to US$356 million (from a loss of US$480 million in 2023).
- Performance Drivers: The U.S. business benefited from lower hog raising costs and higher hog prices. The Group optimized its industrial structure by reducing the scale of hog farming and improving management.
Others Performance
- Revenue: Increased by 2.1% to US$1,943 million.
- Operating Loss: Expanded to US$186 million.
- Performance Drivers: Revenue growth was driven by increased poultry sales volume. The loss was primarily due to increases in performance-related remunerations.
Founders
Mr. Wan Long is the pivotal figure in the history of WH Group. He joined the Henan Luohe Meat Products Processing United Factory in May 1968 and became the general manager in 1984. Under his leadership, the small local factory transformed into the multinational conglomerate known today as WH Group. Mr. Wan has over 50 years of experience in the meat processing industry. He has been instrumental in the strategic direction, including the acquisition of Smithfield Foods and the subsequent listing of WH Group. He currently serves as the Chairman of the Board.
Shareholding Pattern
- Wan Long & Family: Mr. Wan Long is interested in approximately 31.68% of the shares through a discretionary family trust and controlled corporations.
- Heroic Zone: A substantial shareholder holding 27.08% beneficial interest.
- Rise Grand: Controls 39.20% of the voting rights through various controlled entities and voting undertakings.
- Public/Institutional Shareholders: Include major global investors like The Bank of New York Mellon Corporation (5.01%) and BlackRock, Inc. (5.13%).
Parent
WH Group Limited acts as the ultimate holding company for the group. It is a limited liability company incorporated in the Cayman Islands. There is no separate parent entity above WH Group Limited listed in the provided documents; it is the top-level entity listed on the Hong Kong Stock Exchange.
Investments and Capital Expenditure Plans
Capital Expenditures (2024)
- Total Capex: US$707 million.
- North America: US$350 million. Used for the modernization of processing plants and expansion of packaged meats facilities.
- China: US$201 million. Deployed for establishing production facilities related to poultry and convenience food.
- Europe: US$156 million. Utilized for the construction and purchase of new plants.
Strategic Investments
- Acquisition of Argal: Completed in March 2024 to strengthen the packaged meats portfolio in Spain and Europe.
- Purchase of Facility in Tennessee: A dry sausage production facility acquired to fuel growth in value-added packaged meats in the U.S.
- Formation of Murphy Farms: A strategic move in the U.S. to optimize hog production assets.
Future Strategy
WH Group maintains a clear strategic roadmap to sustain growth and leadership:
- “Two Adjustments and One Control”: The strategy of “adjusting product mix, adjusting prices, and controlling costs” remains central to the Packaged Meats business.
- Protein Diversification: The Group continues to actively promote the diversification of protein sources, specifically growing its poultry business.
- Global Industrial Footprint: Further improvement of the global industrial layout to leverage synergies between markets in China, the U.S., and Europe.
- Digitalization and Intelligence: Optimizing processes and reducing costs through the adoption of digital technologies to improve quality and efficiency.
- Market Expansion: Vigorously developing the packaged meats business and expanding the volume of meat sales to enhance market competitiveness.
Key Strengths
- Global Leadership: The world’s largest pork company with dominant positions in China, the U.S., and Europe.
- Vertical Integration: A complete industry chain covering feed, farming, slaughtering, processing, and logistics, ensuring quality control and supply stability.
- Brand Power: A portfolio of iconic brands like Smithfield and Shuanghui that command high consumer trust.
- Scale Efficiency: Massive production capabilities allow for economies of scale, reducing unit costs and enhancing margins.
- Geographical Diversification: Balanced revenue streams from North America, China, and Europe mitigate regional market risks.
Key Challenges and Risks
- Commodities Price Risk: Fluctuations in prices of raw materials like corn, soybean meal, and hogs directly impact profitability.
- Regulatory Risks: Operations are subject to stringent regulations regarding food safety, environmental protection, and antitrust laws across different jurisdictions.
- Animal Diseases: Risks related to animal epidemics such as African Swine Fever (ASF) can disrupt supply chains and increase costs.
- Geopolitical Uncertainties: Trade wars, tariffs, and geopolitical tensions can affect international trade flows and operational costs.
- Litigation: The Group faces ongoing antitrust litigation in the U.S., which requires management attention and financial resources for defense and settlements.
Conclusion and Strategic Outlook
WH Group Limited solidified its status as a global industry leader in 2024 by delivering record operating profits despite a challenging revenue environment. By successfully turning around its Pork segment and maintaining robust growth in Packaged Meats, the company demonstrated the resilience of its integrated business model. Looking forward, WH Group is well-positioned to navigate global economic uncertainties through its strategic focus on cost control, product diversification, and global expansion. With a strong balance sheet, improved liquidity, and a clear vision for the future, WH Group continues to create long-term value for its shareholders and stakeholders.
Official Site: http://www.wh-group.com
FAQ Section
1. What is WH Group Limited’s main business?
WH Group Limited is the world’s largest pork company, engaged in vertical integration across the pork industry value chain, including hog production, slaughtering, and the processing and distribution of packaged meats and fresh pork.
2. What was WH Group’s total revenue in 2024?
In the fiscal year 2024, WH Group reported a total revenue of US$25,941 million.
3. Which region contributes the most to WH Group’s revenue?
North America is the largest contributor, accounting for 53.0% of the total revenue in 2024, amounting to US$13,760 million.
4. What are the key subsidiaries of WH Group?
The key subsidiaries include Smithfield Foods (operating in the U.S.), Henan Shuanghui Investment & Development Co., Ltd. (operating in China), and Morliny Foods (operating in Europe).
5. How many employees does WH Group have?
As of 31 December 2024, WH Group had approximately 102,000 employees globally.
6. Who is the Chairman of WH Group?
Mr. Wan Long serves as the Chairman of the Board and Executive Director of WH Group.
7. What constitutes the largest business segment for WH Group?
The Packaged Meats segment is the largest, contributing 52.6% of total revenue and 92.9% of operating profit in 2024.
8. Does WH Group pay dividends?
Yes, for the year ended 31 December 2024, the Board recommended a final dividend of HK$0.40 per share, bringing the total dividend for the year to HK$0.50 per share.
9. What brands does WH Group own?
WH Group owns a vast portfolio of brands including Smithfield, Shuanghui, Eckrich, Farmland, Nathan’s Famous, Armour, Morliny, and Krakus.
10. What is WH Group’s strategy for the future?
The Group’s strategy focuses on “two adjustments and one control” (adjusting product mix and prices, controlling costs), diversifying into poultry, and optimizing its global industrial footprint.
Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.
