On the 10th day of month 27, Yunnan Shennong Agricultural Industry Group Co., Ltd. (Shennong Group, 605296.SH) released its third-quarter report for 2026.
In the third quarter, Shennong Group recorded operating revenue of 16.3 billion yuan, up 44.79% year on year. Net profit attributable to shareholders of the parent company was -1.62 billion yuan, compared with 0.74 billion yuan in the same period of the previous year, turning from profit to loss year on year. Non-GAAP net profit was -1.36 billion yuan, down 488.27% year on year.
In the first three quarters, Shennong Group recorded operating revenue of 41.19 billion yuan, up 5% year on year. Net profit attributable to shareholders of the parent company was -9.71 billion yuan, compared with 4.62 billion yuan in the same period of the previous year, turning to a loss year on year. Non-GAAP net profit was -9.51 billion yuan, down 319.63% year on year.
Shennong Group stated that the sharp declines in net profit attributable to shareholders of the parent company in the first three quarters and the third quarter were mainly due to an increase in hog sales volume while selling prices fell compared with the same period last year.
In the first half of this year, Shennong Group generated operating revenue of 24.89 billion yuan, down 11.02% year on year. Net profit attributable to shareholders of the parent company was -8.09 billion yuan, down 308.74% year on year. Net profit excluding non-recurring items was -8.15 billion yuan, down 304.81% year on year.
According to Shennong Group's interim report, the company is a national key leading enterprise in agricultural industrialization integrating feed production, hog farming, slaughtering and processing, and food processing. It is also currently the largest locally based hog farming enterprise in Yunnan Province. Its main businesses include feed processing and sales; hog farming and sales; hog slaughtering and sales of fresh pork products; and food processing and sales. Its main products sold externally include feed; hogs (including market hogs and piglets); fresh pork (including carcasses and cuts) and pork by-products (including pig heads and offal); and further-processed products (including crispy pork, luncheon meat, and meat sausages). The company also provides hog slaughtering services to external customers. The company focuses on building and developing the full hog industry chain, forming a complete industrial chain encompassing feed processing and sales, hog farming and sales, hog slaughtering, and food processing and sales.