神农集团(605296) - 2025 Q2 - 季度财报

Important Notice Statement by the Board of Directors, Supervisory Board, and Senior Management The company's Board of Directors, Supervisory Board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and assume legal responsibility, with the financial report declared true, accurate, and complete by key executives - The company's Board of Directors, Supervisory Board, and all directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report and assume legal responsibility[3] - This semi-annual report has not been audited[5] - Company head He Zuxun, chief accountant Shu Meng, and head of accounting department Duan Kunfen declare that the financial report in the semi-annual report is true, accurate, and complete[5] Profit Distribution Plan The Board of Directors approved the 2025 semi-annual profit distribution plan, proposing a cash dividend of 3.90 yuan (tax inclusive) per 10 shares to all shareholders, totaling 202,120,784.58 yuan (tax inclusive), with no bonus shares or capital reserve conversion - The company approved the "Proposal on the 2025 Semi-Annual Profit Distribution Plan"[6] 2025 Semi-Annual Profit Distribution Plan | Indicator | Content | | :--- | :--- | | Cash Dividend per 10 Shares (tax inclusive) | 3.90 yuan | | Total Cash Dividend (tax inclusive) | 202,120,784.58 yuan | | Bonus Shares | No | | Capital Reserve Conversion to Share Capital | No | Risk Statement The company advises investors to be aware of investment risks, as forward-looking statements regarding future plans and development strategies in this report do not constitute substantive commitments, with detailed risks and countermeasures for production and operation provided - Forward-looking statements in this report, including future plans and development strategies, do not constitute a substantive commitment to investors, who are advised to be aware of investment risks[7] - The company has detailed various risks and countermeasures it may face in its production and operation in this report, please refer to the "Risks that may be faced" section in "Management Discussion and Analysis" (Section III)[8] Definitions Definitions of Common Terms This section defines common terms used in the report, including company name, reporting period, main products (e.g., feed, live pigs, breeding pigs, commercial pigs, piglets, fattening pigs, pork products, by-products), industry terms (e.g., African Swine Fever, PIC Company, feed-to-meat ratio), and management and environmental indicators (e.g., ISO22000, HACCP, CODcr, NH3-N, TN, P, PH, SAP), ensuring accurate understanding of the report content - This section provides detailed explanations of common terms appearing in the report, including company abbreviation, reporting period, and definitions of various live pig products (e.g., breeding pigs, commercial pigs, piglets, fattening pigs)[13] - It covers professional terms such as feed product types (pig compound feed, concentrated feed, premix feed), major animal diseases (African Swine Fever, PRRS, PED, Pseudorabies), and food safety and environmental management systems (ISO22000, HACCP, CODcr, NH3-N, SAP), among others[13][14] Company Profile and Key Financial Indicators Company Information This section lists the company's Chinese name, abbreviation, English name and abbreviation, and legal representative information, clarifying the company's basic identity Company Basic Information | Indicator | Content | | :--- | :--- | | Chinese Name | Yunnan Shennong Agricultural Industry Group Co.,LTD. | | Chinese Abbreviation | Shennong Group | | English Name | Yunnan Shennong Agricultural Industry Group Co.,LTD. | | English Abbreviation | Shennong Group | | Legal Representative | He Zuxun | Contact Person and Contact Information This section provides the names, contact addresses, telephone numbers, fax numbers, and email addresses of the company's Board Secretary and Securities Affairs Representative, facilitating communication for investors and relevant parties Company Contact Information | Position | Name | Contact Address | Phone | Fax | Email | | :--- | :--- | :--- | :--- | :--- | :--- | | Board Secretary | Jiang Hong | 39th Floor, Kunming Hang Lung Plaza Office Building, No. 23 Dongfeng East Road, Panlong District, Kunming City, Yunnan Province | 0871-63193176 | 0871-63193176 | jh@ynsnjt.com | | Securities Affairs Representative | Li Dongbing | 39th Floor, Kunming Hang Lung Plaza Office Building, No. 23 Dongfeng East Road, Panlong District, Kunming City, Yunnan Province | 0871-63193176 | 0871-63193176 | ldb@ynsnjt.com | Brief Introduction to Changes in Basic Information The company's registered address changed on October 26, 2016, with its current office located at Kunming Hang Lung Plaza and its website at www.ynsnjt.com - The company's registered address changed on October 26, 2016, from Chawangshan, Eastern Suburb of Kunming City, Yunnan Province, to Plot 14-06-1, Puzhaohaizi Area, Kunming Economic Development Zone[18] - The company's office address is 39th Floor, Kunming Hang Lung Plaza Office Building, No. 23 Dongfeng East Road, Panlong District, Kunming City, Yunnan Province, postal code 650051[18] - The company's website is www.ynsnjt.com, and its email address is ynsnjt@ynsnjt.com[18] Brief Introduction to Changes in Information Disclosure and Document Custody Locations The company designates "China Securities Journal," "Shanghai Securities News," "Securities Daily," and "Securities Times" as information disclosure newspapers, with the semi-annual report published on the Shanghai Stock Exchange website and available for inspection at the company's office address - The company's selected newspapers for information disclosure are "China Securities Journal," "Shanghai Securities News," "Securities Daily," and "Securities Times"[19] - The website address for publishing the semi-annual report is http://www.sse.com.cn[19](index=19&type=chunk) - The company's semi-annual report is available for inspection at 39th Floor, Kunming Hang Lung Plaza Office Building, No. 23 Dongfeng East Road, Panlong District, Kunming City, Yunnan Province[19] Brief Introduction to Company Shares The company's shares are RMB ordinary shares, listed and traded on the Shanghai Stock Exchange, with the stock abbreviation Shennong Group and stock code 605296 Company Stock Information | Share Type | Stock Exchange | Stock Abbreviation | Stock Code | Former Stock Abbreviation | | :--- | :--- | :--- | :--- | :--- | | RMB Ordinary Shares | Shanghai Stock Exchange | Shennong Group | 605296 | Not Applicable | Company's Key Accounting Data and Financial Indicators In the first half of 2025, the company's operating revenue increased by 12.16%, with total profit and net profit attributable to parent company both achieving significant growth exceeding 200%, and net cash flow from operating activities increasing by 88.16%, demonstrating strong profitability and improved cash flow, alongside substantial increases in basic earnings per share and weighted average return on net assets Key Accounting Data for H1 2025 | Key Accounting Data | Current Reporting Period (Jan-Jun) | Prior Year Period | % Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Operating Revenue (yuan) | 2,797,626,119.42 | 2,494,408,913.13 | 12.16 | | Total Profit (yuan) | 388,448,016.77 | 124,037,818.40 | 213.17 | | Net Profit Attributable to Shareholders of Listed Company (yuan) | 387,516,418.92 | 123,947,136.82 | 212.65 | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-Recurring Gains and Losses (yuan) | 397,802,621.08 | 136,820,246.32 | 190.75 | | Net Cash Flow from Operating Activities (yuan) | 557,444,348.73 | 296,261,844.46 | 88.16 | | Net Assets Attributable to Shareholders of Listed Company (period-end) (yuan) | 5,122,769,435.21 | 4,832,547,371.77 | 6.01 | | Total Assets (period-end) (yuan) | 6,926,830,527.47 | 6,655,097,461.07 | 4.08 | Key Financial Indicators for H1 2025 | Key Financial Indicators | Current Reporting Period | Prior Year Period | % Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | 0.75 | 0.24 | 212.50 | | Diluted Earnings Per Share (yuan/share) | 0.75 | 0.24 | 212.50 | | Basic Earnings Per Share After Deducting Non-Recurring Gains and Losses (yuan/share) | 0.77 | 0.26 | 196.15 | | Weighted Average Return on Net Assets (%) | 7.82 | 2.91 | Increased by 4.91 percentage points | | Weighted Average Return on Net Assets After Deducting Non-Recurring Gains and Losses (%) | 8.02 | 3.21 | Increased by 4.81 percentage points | Non-Recurring Gains and Losses Items and Amounts Total non-recurring gains and losses for the period amounted to -10,286,202.16 yuan, primarily comprising gains from disposal of non-current assets, government subsidies, fair value changes of financial assets, capital occupation fees, and non-operating income/expenses such as pig mortality losses, fixed asset write-offs, and donation expenditures Non-Recurring Gains and Losses Items and Amounts for H1 2025 | Non-Recurring Gains and Losses Item | Amount (yuan) | Notes | | :--- | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | 174,271.01 | Primarily gains from termination of lease for right-of-use assets | | Government Subsidies Included in Current Profit and Loss | 1,087,834.52 | Primarily government subsidy income | | Gains and Losses from Fair Value Changes of Financial Assets and Liabilities Held by Non-Financial Enterprises and from Disposal of Financial Assets and Liabilities | 2,493,235.28 | Primarily investment income from disposal of trading financial assets and fair value changes of derivative financial assets | | Capital Occupation Fees Received from Non-Financial Enterprises Included in Current Profit and Loss | 875,156.53 | Primarily interest income from loans to cooperative farmers | | Other Non-Operating Income and Expenses Apart from the Above Items | -15,564,580.70 | Primarily pig mortality losses, fixed asset write-offs, and donation expenditures | | Less: Income Tax Impact | -647,881.20 | | | Total | -10,286,202.16 | | Net Profit After Deducting Impact of Share-Based Payments Net profit after deducting the impact of share-based payments for the current period was 385,000,010.64 yuan, representing a 232.05% increase from the prior year, indicating a significant improvement in the company's profitability after excluding equity incentive expenses Net Profit After Deducting Impact of Share-Based Payments | Key Accounting Data | Current Reporting Period (Jan-Jun) | Prior Year Period | % Change from Prior Year Period | | :--- | :--- | :--- | :--- | | Net Profit After Deducting Impact of Share-Based Payments (yuan) | 385,000,010.64 | 115,947,815.98 | 232.05 | Management Discussion and Analysis Explanation of the Company's Industry and Main Business Operations During the Reporting Period In the first half of 2025, with the national economy recovering and stable hog prices, the company maintained its full-chain hog industry strategy, enhancing its advantages through cost reduction, efficiency improvement, and technological upgrades. The feed industry saw a 7.70% increase in output, hog farming a 0.60% increase in slaughter volume, and slaughtering a 14.5% increase, while the food deep processing output value is projected to exceed 15.9 trillion yuan, driven by demand for high-value-added products. The company's main businesses include feed production, hog farming, slaughtering, and food deep processing, forming a complete industrial chain, with digital management, strategic procurement, and refined formula management improving operational efficiency and product quality - 2025年上半年，国民经济持续恢复向好，生猪价格持续稳定运行，保持了较好的盈利性[29] - The company firmly implements a high-quality development strategy, adheres to a full-chain hog industry development strategy, and continuously focuses on building a leading enterprise with an integrated hog industry chain[29] Industry Overview In the first half of 2025, the total output of the feed industry increased by 7.70%, but ex-factory prices of main products showed a downward trend amid fierce market competition. The hog farming industry saw a 0.60% increase in slaughter volume and a 0.10% increase in sow inventory, accelerating its scale-up. Hog slaughter volume increased by 14.5%, with the industry transitioning towards intensive and efficient operations. Food deep processing output value is projected to exceed 15.9 trillion yuan, driven by surging demand for high-value-added products due to consumption upgrades, supported by national policies for healthy industry development H1 2025 Feed Industry Output | Indicator | Output (10,000 tons) | YoY Growth (%) | | :--- | :--- | :--- | | National Industrial Feed Total Output | 15,850 | 7.70 | | Compound Feed | 14,807 | 8.10 | | Additive Premix Feed | 342 | 6.90 | | Concentrated Feed | 614 | -1.50 | - In the first half of 2025, national hog slaughter volume was 366.19 million heads, a 0.60% year-on-year increase; sow inventory was 40.43 million heads, a 0.10% year-on-year increase[31] - In the first half of 2025, national designated hog slaughtering enterprises above designated size cumulatively slaughtered 184 million heads, a 14.5% increase compared to the same period in 2024[32] - Food processing output value is expected to exceed 15.9 trillion yuan in 2025, with a compound annual growth rate of 7.8% from 2020-2025, driven by surging demand for high-value-added products[33] Explanation of the Company's Main Business Operations The company is a national key leading enterprise in agricultural industrialization, integrating feed production, hog farming, slaughtering, and food deep processing, with main products including feed, live hogs, fresh pork, and deep-processed products. The company optimizes its supply chain through digital management tools, reduces raw material costs via strategic procurement and futures hedging, and establishes partnerships with leading enterprises. Sales channels include internal sales, distributors, brokers, self-owned slaughterhouses, farmers' markets, fresh food supermarkets, and online platforms, also offering custom slaughtering services. The company emphasizes quality, biosecurity, and traceability across all business segments, forming a complete industrial chain - The company is a national key leading enterprise in agricultural industrialization, integrating feed production, hog farming, slaughtering, and food deep processing, and is also the largest hog farming enterprise in Yunnan Province[34] - The company's main businesses include feed processing and sales, hog farming and sales, hog slaughtering and fresh pork food sales, and food deep processing and sales[34] - The company enhances supply chain visibility through digital management tools and platforms, optimizing inventory management, procurement planning, and production scheduling, while also using futures hedging to mitigate risks[36][37] - The company's feed sales are divided into internal and external sales; commercial hogs are primarily sold to its own slaughtering and processing plants and hog brokers; piglets are mainly sold to farming group companies; pork products are sold through farmers' markets, fresh food supermarkets, wholesale distributors, and online channels, with custom slaughtering services also provided[38] Discussion and Analysis of Operations In the first half of 2025, the company's business segments actively responded to market changes. The feed business ensured cost advantages and product quality through optimized procurement, futures hedging, and the new Shilin feed base. Hog farming focused on organizational vitality, cost reduction, efficiency improvement, and digital transformation, strengthening biosecurity and enhancing production management. The hog slaughtering business reinforced industrial chain linkage, expanded refined cut products and frozen product businesses, increasing market share and brand influence. The food deep processing business delved into market demand, developing snack products and catering support products, and actively expanding into online and Southeast Asian markets to enhance brand influence - The feed business ensures cost advantages and product quality through optimized procurement models, futures hedging, and the newly built Shilin feed base, while continuously updating the SAP system to improve operational efficiency[42][43] - The hog farming business adheres to high health standards and major disease eradication, strengthens its biosecurity management system, activates organizational vitality through incentive-based assessment plans, and promotes digital operations and integrated management[44][45] - The hog slaughtering business relies on the SAP digital operation platform to improve its quality control and traceability system, expand into hot, chilled, and refined cut products as well as frozen products, and actively penetrate lower-tier market channels[46][47] - The food deep processing business has developed meat sausage, thumb sausage, Jinduigu series flavored products, cured meat products, rice noodle配套 products, and hotpot customized ingredients in response to market demand, and is actively expanding into online and Southeast Asian markets[47][48] Analysis of Core Competitiveness During the Reporting Period The company's core competitiveness lies in its integrated industrial chain, corporate culture and talent team, modern management experience, advanced farming equipment, informatization and technological R&D, and geographical advantages. Industrial chain integration effectively reduces costs, mitigates risks, and ensures food safety. A strong corporate culture and professional talent team drive sustainable development. Modern management experience is built upon scientific farming environment control, comprehensive nutritional supply, a robust biosecurity system, and a traceable slaughtering and processing system. Technological advantages are demonstrated by internationally advanced farming equipment, SAP platform-driven digital management, and numerous patents and research achievements. Yunnan Province's favorable ecological environment and geographical conditions provide a distinct regional advantage for livestock development - The company possesses a complete hog industrial chain integrating feed processing, hog farming, slaughtering, and deep processing, effectively reducing costs, mitigating risks, and achieving product quality traceability[49] - Adhering to the corporate culture of "Love in Heart, Fruits in Bloom," the company has built a young, knowledgeable, and professional talent team, implementing a human resource management mechanism characterized by clear division of labor, remuneration based on performance, and promotion of the fittest[50] - The company has established a modern hog industrial chain management system centered on pig health and biosecurity, including scientific farming environment control, comprehensive nutritional supply, a robust biosecurity system, and a traceable slaughtering and processing system[51][52][53][54] - The company's modern farms adopt an American farming model, introducing automatic environmental control systems and automatic feeding systems from internationally renowned manufacturers such as AGCO Corporation and Hog Slat Inc[55] - The company has built an integrated information platform based on the SAP system, achieving real-time synchronization of business and financial data, and plans to deepen the application of cutting-edge technologies such as AI intelligent analysis and the Internet of Things[56] - The company's technology R&D center is recognized as a provincial-level enterprise technology center, holding 51 authorized patents (3 invention patents), and has participated in multiple scientific research projects to optimize feed formulation technology[57][58] - The company's hog production capacity is primarily concentrated in Yunnan Province, a region with a favorable ecological environment, stable seasonal temperatures, and mountainous terrain suitable for farm construction without occupying arable land, forming natural geographical isolation belts conducive to biosecurity[59] Major Operating Performance During the Reporting Period In the first half of 2025, the company's operating revenue increased by 12.16% to 2.80 billion yuan, primarily due to increased hog sales and slaughter volume. Operating costs decreased by 0.20%, mainly due to the commissioning of supporting feed factories and supply chain optimization. Selling and administrative expenses rose due to business expansion and increased employee compensation. Financial expenses decreased by 38.50% due to reduced interest expenditures. Net cash flow from operating activities significantly increased by 88.16%, while net cash flow from investing activities decreased by 62.75% due to factory expansion and increased purchases of wealth management products, and net cash flow from financing activities decreased by 180.80% due to reduced borrowings and increased share repurchases. The company's asset and liability structure remained robust, with total assets of 6.93 billion yuan and net assets of 5.12 billion yuan at period-end. During the reporting period, the company established 7 new wholly-owned subsidiaries in Yunnan Province, increased capital in 2 wholly-owned subsidiaries, and invested in 3 piglet breeding base construction projects, with a total investment of 550 million yuan, to expand its hog farming scale H1 2025 Major Financial Statement Item Changes | Item | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | % Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 2,797,626,119.42 | 2,494,408,913.13 | 12.16 | Primarily due to increased hog sales and slaughter volume | | Operating Cost | 2,185,118,382.48 | 2,189,460,855.79 | -0.20 | Primarily due to commissioning of supporting feed factories and optimized supply chain leading to lower hog costs | | Selling Expenses | 39,076,193.88 | 31,351,092.24 | 24.64 | Primarily due to increased employee compensation from business expansion and increased brand promotion investment | | Administrative Expenses | 162,630,829.47 | 149,628,101.18 | 8.69 | Primarily due to increased employee compensation from scale expansion | | Financial Expenses | 9,316,920.91 | 15,150,086.08 | -38.50 | Primarily due to reduced interest expenditures | | R&D Expenses | 6,160,322.06 | 6,671,723.65 | -7.67 | Primarily due to reduced employee compensation and equity incentive expenses | | Net Cash Flow from Operating Activities | 557,444,348.73 | 296,261,844.46 | 88.16 | Primarily due to increased hog sales and slaughter volume | | Net Cash Flow from Investing Activities | -492,671,057.36 | -302,720,566.44 | -62.75 | Primarily due to increased investment in factory expansion and purchase of wealth management products | | Net Cash Flow from Financing Activities | -190,782,161.76 | 236,118,080.53 | -180.80 | Primarily due to reduced borrowings, increased land lease payments, and increased share repurchases | - The company invested in establishing 7 wholly-owned subsidiaries in Yunnan Province, increased capital in 2 wholly-owned subsidiaries, and invested in constructing 3 piglet breeding base projects, with a total investment of 550 million yuan[68][69][70][71][72][73] H1 2025 Major Asset and Liability Changes | Item Name | Current Period-End Amount (yuan) | % of Total Assets at Current Period-End | Prior Year-End Amount (yuan) | % of Total Assets at Prior Year-End | % Change from Prior Year-End | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 130,265,684.25 | 1.88 | 0.00 | 0.00 | 100.00 | Primarily due to an increase in derivative financial assets | | Construction in Progress | 84,080,810.53 | 1.21 | 199,370,436.33 | 3.00 | -57.83 | Primarily due to transfer of hog farm construction in progress to fixed assets | | Intangible Assets | 180,484,942.32 | 2.61 | 132,349,823.09 | 1.99 | 36.37 | Primarily due to increased land use rights, mining rights, and transfer of informatization systems to fixed assets | | Other Non-Current Assets | 16,392,693.49 | 0.24 | 58,242,329.73 | 0.88 | -71.85 | Primarily due to a decrease in prepaid long-term asset payments | | Short-Term Borrowings | 130,083,194.43 | 1.88 | 205,158,194.41 | 3.08 | -36.59 | Primarily due to repayment of short-term borrowings | | Notes Payable | 0.00 | 0.00 | 66,350,100.00 | 1.00 | -100.00 | Primarily due to acceptance of bank acceptance bills | | Contract Liabilities | 13,610,655.17 | 0.20 | 10,133,684.98 | 0.15 | 34.31 | Primarily due to an increase in advance receipts for sales | | Employee Compensation Payable | 63,163,267.95 | 0.91 | 101,804,390.04 | 1.53 | -37.96 | Primarily due to payment of accrued year-end salaries in the current period | | Taxes Payable | 5,616,212.76 | 0.08 | 8,555,245.18 | 0.13 | -34.35 | Primarily due to payment of corporate income tax accrued in the prior year | | Long-Term Borrowings | 290,135,133.83 | 4.19 | 226,625,251.10 | 3.41 | 28.02 | Primarily due to new medium- and long-term bank borrowings and project loans | | Lease Liabilities | 171,063,000.05 | 2.47 | 130,227,244.90 | 1.96 | 31.36 | Primarily due to increased land leases | | Deferred Income | 57,244,308.20 | 0.83 | 39,483,239.65 | 0.59 | 44.98 | Primarily due to increased government subsidies received | - At the end of the reporting period, restricted monetary funds totaled 41,997,076.92 yuan, mainly comprising trading margins, land reclamation deposits, mine restoration funds, and ETC deposits. Restricted fixed assets at period-end amounted to 73,700,534.29 yuan, serving as collateral for finance leases (sale-and-leaseback)[66] Risks That May Be Faced The company faces multiple risks including animal epidemics, natural disasters, policy, market, operational management, and financial risks. Animal epidemics (e.g., African Swine Fever) may lead to pig mortality, increased costs, and market panic. Natural disasters could damage production facilities and affect feed raw material prices. Changes in industrial and environmental policies may increase operating costs. Fluctuations in live hog and pork prices, as well as major raw material prices, are key market risks. Food safety, land leases, and cooperative farming models may pose operational management risks. Inventory impairment and changes in tax preferential policies constitute financial risks - The company faces various animal epidemic risks such as Porcine Reproductive and Respiratory Syndrome (PRRS) and African Swine Fever, which may lead to pig mortality, decreased slaughter volume, increased production costs, and even trigger market price fluctuations and consumer concerns[78] - The company's feed and farming businesses are susceptible to natural disasters such as droughts, floods, and earthquakes, which may cause damage to production facilities, pig mortality, and lead to increased feed raw material prices[79] - Changes in industrial policies (e.g., feed industry development plans) and environmental protection policies (e.g., pollutant emission standards, designation of restricted farming areas) may adversely affect the company's production and operations and environmental protection investments[80] - Live hog and pork prices are subject to cyclical fluctuations influenced by growth cycles, inventory levels, feed prices, and market supply and demand, which may lead to a decline in the company's profitability or even losses. Fluctuations in the prices of major raw materials such as corn and soybean meal also directly impact operating costs[81] - Operational management risks include food safety issues, uncertainties in rural land leases, risks related to the quantity and quality of farmers under the "company + family farm" cooperative farming model, and the risk of failed application or renewal of operating licenses[82][83][84] - Financial risks primarily include inventory impairment risk (especially for consumable biological assets affected by live hog market price fluctuations) and the risk of changes in tax preferential policies (e.g., adjustments to VAT and corporate income tax preferential policies)[85] Corporate Governance, Environment and Society Changes in Directors, Supervisors, and Senior Management During the reporting period, the company's Board of Directors and Supervisory Board completed their re-election. Independent directors Mr. Long Chao and Mr. Huang Song retired due to term expiration, while Mr. Chen Xudong and Ms. Luo Wei were elected as new independent directors. Mr. Sen Demin was elected as an employee representative director, and Ms. Wang Ping was elected as a non-independent director Changes in Directors, Supervisors, and Senior Management | Name | Position Held | Change | | :--- | :--- | :--- | | Long Chao | Independent Director | Resigned | | Huang Song | Independent Director | Resigned | | Chen Xudong | Independent Director | Elected | | Luo Wei | Independent Director | Elected | | Wang Ping | Director | Elected | | Sen Demin | Director | Elected | - Independent directors Mr. Long Chao and Mr. Huang Song resigned due to completing 6 consecutive years of service[88] - Mr. Sen Demin was elected as an employee representative director of the company's Fifth Board of Directors, Mr. Chen Xudong and Ms. Luo Wei were elected as independent directors, and Ms. Wang Ping was elected as a non-independent director[89] Profit Distribution or Capital Reserve Conversion Plan The company proposes a cash dividend of 3.90 yuan (tax inclusive) per 10 shares to all shareholders, totaling 202,120,784.58 yuan (tax inclusive), with no bonus shares or capital reserve conversion, a plan approved by both the Board of Directors and Supervisory Board Semi-Annual Profit Distribution Plan | Indicator | Content | | :--- | :--- | | Is there a distribution or conversion | Yes | | Number of Bonus Shares per 10 Shares (shares) | 0 | | Dividend per 10 Shares (yuan) (tax inclusive) | 3.90 | | Number of Shares Converted from Capital Reserve per 10 Shares (shares) | 0 | - This profit distribution does not involve bonus shares or capital reserve conversion to share capital. If the company's total share capital changes before the equity distribution record date, the total distribution amount will be adjusted accordingly, maintaining the principle of an unchanged per-share distribution amount[90] Status and Impact of Company's Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The conditions for the second tranche of the 2022 Restricted Stock Incentive Plan's reserved grant have been met, and 354,800 restricted shares have been unlocked and listed. Concurrently, 101,200 restricted shares were forfeited and repurchased and cancelled due to some incentive recipients' resignation or failure to meet performance targets - The conditions for the second tranche of the 2022 Restricted Stock Incentive Plan's reserved grant have been met, and the unlocking and listing of 354,800 restricted shares have been completed[91][149] - Due to the resignation of 23 reserved grant incentive recipients, the death of 1 incentive recipient, and 57 incentive recipients failing to meet or fully meet their 2024 individual performance assessments, a total of 101,200 restricted shares were forfeited and repurchased and cancelled by the company[93][195] Specific Progress in Consolidating and Expanding Poverty Alleviation Achievements, Rural Revitalization, etc. The company actively responded to the national rural revitalization strategy, implementing a "company + modern professional farmer" hog contract farming model since 2017, with 558 contract farmers at the end of the reporting period, effectively assisting them in poverty alleviation and prosperity through shared resources and risks - The company actively integrates into and serves the national rural revitalization strategy, having explored the "company + modern professional farmer" hog contract farming model since 2017[93] - At the end of the reporting period, the company had 558 contract farmers, effectively assisting them in poverty alleviation and prosperity through shared resources and risks[93] Significant Matters Fulfillment of Commitments All commitments made by the company's actual controllers, shareholders, related parties, and the company itself during the initial public offering and refinancing processes, including share lock-up, stock price stabilization, information disclosure truthfulness, profit distribution policy, non-infringement of company interests, and equity incentive-related commitments, have been strictly fulfilled on schedule, with no instances of overdue fulfillment - The controlling shareholder and actual controllers committed not to transfer or entrust others to manage all shares directly and indirectly held by them within 36 months from the date of the company's stock listing, and this commitment has been strictly fulfilled[95][96] - The company's directors, supervisors, and senior management committed not to transfer more than 25% of their total shares held in the company annually during their tenure, and not to transfer any shares within six months after leaving office, and this commitment has been strictly fulfilled[97] - The company and relevant responsible parties committed that the prospectus contains no false records, misleading statements, or major omissions, and committed to repurchase or compensate investors for losses in accordance with the law, and this commitment has been strictly fulfilled[104][105][106][107] - The company committed to implementing a continuous, stable, and scientific dividend distribution policy, prioritizing cash dividends, and has strictly adhered to it[108][109][110][111][112] - The company and its directors and senior management committed not to overstep their authority in interfering with the company's operational management activities, not to infringe upon the company's interests, and to ensure the effective implementation of return compensation measures, and these commitments have been strictly fulfilled[116][117][124][125][126][127] - Commitments related to the equity incentive plan, including the company not providing financial assistance to incentive recipients, incentive recipients complying with assessment systems, and the truthfulness of information disclosure documents, have all been strictly fulfilled[128][129][130][131][132] Significant Related Party Transactions During the reporting period, the company engaged in related party transactions with its joint venture, PIC (Qiannan) Agricultural Technology Co., Ltd., purchasing breeding pigs and semen for 7,799,860.60 yuan and selling service fees for 56,212.25 yuan. Additionally, daily related party transactions, including raw material purchases and sales of deep-processed gift boxes, occurred with Sichuan Xinshuo Supply Chain Management Co., Ltd., Yunnan Denong Tea Industry Co., Ltd., and Kunming Genrong Enterprise Marketing Planning Co., Ltd., totaling 1,259,100.12 yuan Related Party Transactions Related to Daily Operations (Disclosed) | Related Party | Relationship | Transaction Type | Transaction Content | Transaction Amount (yuan) | % of Similar Transactions | | :--- | :--- | :--- | :--- | :--- | :--- | | PIC (Qiannan) Agricultural Technology Co., Ltd. | Joint Venture | Purchase of Goods | Purchase of breeding pigs, semen | 7,799,860.60 | 28.82 | | PIC (Qiannan) Agricultural Technology Co., Ltd. | Joint Venture | Sale of Products | Service fees | 56,212.25 | 100.00 | Related Party Transactions Related to Daily Operations (Undisclosed) | Related Party | Relationship | Transaction Type | Transaction Content | Transaction Amount (yuan) | % of Similar Transactions | | :--- | :--- | :--- | :--- | :--- | :--- | | Kunming Genrong Enterprise Marketing Planning Co., Ltd. | Other Related Party | Sale of Goods | Sale of deep-processed gift boxes | 9,522.12 | 3.52 | | Sichuan Xinshuo Supply Chain Management Co., Ltd. | Other Related Party | Purchase of Goods | Purchase of raw materials | 1,225,578.00 | 100.00 | | Yunnan Denong Tea Industry Co., Ltd. | Other Related Party | Purchase of Goods | Purchase of raw materials | 24,000.00 | 97.72 | Significant Contracts and Their Fulfillment During the reporting period, the company's total external guarantees amounted to 675.15 million yuan, representing 13.18% of its net assets. Guarantees to subsidiaries totaled 178.96 million yuan in new occurrences, with a period-end balance of 674.76 million yuan. A guarantee of 387,200 yuan provided by the company to its downstream customer, Mojiang County Tuantian Green Leaf Breeding and Farming Professional Cooperative, has become overdue Company Total Guarantee Status | Indicator | Amount (10,000 yuan) | | :--- | :--- | | Total Guarantees to Subsidiaries During Reporting Period | 17,895.79 | | Total Guarantees to Subsidiaries at Period-End (B) | 67,475.87 | | Total Guarantees (A+B) | 67,514.59 | | % of Total Guarantees to Company's Net Assets | 13.18 | - A guarantee of 387,200 yuan provided by the company to its downstream customer, Mojiang County Tuantian Green Leaf Breeding and Farming Professional Cooperative, has become overdue[144][197] Share Changes and Shareholder Information Changes in Share Capital During the reporting period, the company's total share capital remained unchanged at 524,839,012 shares. Restricted shares decreased by 354,800 shares, while unrestricted tradable shares increased by 354,800 shares, primarily due to the completion of the second tranche of the 2022 Restricted Stock Incentive Plan's reserved grant unlocking Share Change Table | Category | Number Before Change (shares) | % Before Change | Change (+, -) Subtotal (shares) | Number After Change (shares) | % After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 1,587,840 | 0.30 | -354,800 | 1,233,040 | 0.23 | | II. Unrestricted Tradable Shares | 523,251,172 | 99.70 | 354,800 | 523,605,972 | 99.77 | | III. Total Shares | 524,839,012 | 100 | 0 | 524,839,012 | 100 | - On May 14, 2025, the company completed the unlocking and listing of 354,800 restricted shares for the second tranche of the 2022 Restricted Stock Incentive Plan's reserved grant[149] Shareholder Information As of the end of the reporting period, the company had 16,174 ordinary shareholders. Among the top ten shareholders, He Zuxun, He Qiaoguan, Yunnan Zhengdao Investment Development Partnership (Limited Partnership), He Yuebin, and He Baojian were the top five, collectively holding 86.54% of the shares. He Zuxun and his concerted parties collectively held 85.2389% of the company's shares, serving as the actual controllers. Restricted shares primarily consisted of restricted stock from the initial and reserved grants of the 2022 equity incentive plan, which will be unlocked in batches on July 18, 2025, and May 14, 2025 Total Shareholders | Indicator | Quantity | | :--- | :--- | | Total Number of Ordinary Shareholders at Period-End (households) | 16,174 | Top Ten Shareholders' Holdings at Period-End | Shareholder Name | Period-End Holding (shares) | % | Shareholder Nature | | :--- | :--- | :--- | :--- | | He Zuxun | 261,016,651 | 49.73 | Domestic Natural Person | | He Qiaoguan | 60,234,612 | 11.48 | Domestic Natural Person | | Yunnan Zhengdao Investment Development Partnership (Limited Partnership) | 52,646,880 | 10.03 | Domestic Non-State-Owned Legal Person | | He Yuebin | 40,156,407 | 7.65 | Domestic Natural Person | | He Baojian | 40,156,407 | 7.65 | Domestic Natural Person | | HKSCC Nominees Limited | 2,047,240 | 0.39 | Overseas Legal Person | | Agricultural Bank of China Co., Ltd. - Yinhua Agricultural Industry Stock Initiated Securities Investment Fund | 1,684,285 | 0.32 | Other | | Bank of China Co., Ltd. - Boshi Consumer Innovation Mixed Securities Investment Fund | 1,163,850 | 0.22 | Other | | Zheshang Bank Co., Ltd. - Guotai CSI Livestock Farming Traded Open-Ended Index Securities Investment Fund | 1,047,800 | 0.20 | Other | | National Social Security Fund 118 Portfolio | 1,047,031 | 0.20 | Domestic Non-State-Owned Legal Person | - He Zuxun, He Qiaoguan, He Baojian, and He Yuebin signed a concerted action agreement, acting in concert with Yunnan Zhengdao Investment Development Partnership (Limited Partnership)[156] Top Ten Restricted Shareholders' Holdings and Restriction Conditions | No. | Name of Restricted Shareholder | Number of Restricted Shares Held (shares) | Reason for Restriction | Date Available for Listing and Trading | | :--- | :--- | :--- | :--- | :--- | | 1 | Zhang Xiaodong | 39,000 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 2 | Shu Meng | 39,000 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 3 | Jiang Hong | 39,000 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 4 | Dun Can | 39,000 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 5 | Liu Yuefeng | 31,200 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 6 | Liu Xiangao | 31,200 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 7 | Han Xingjin | 31,200 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 8 | Tang Tianying | 23,400 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 9 | Li Yunlong | 23,400 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | | 10 | Li Ming | 23,400 | 2022 Restricted Stock Incentive Plan First Grant Lock-up | Unlocked in batches proportionally on July 18, 2025 | Bond-Related Information Corporate Bonds (Including Enterprise Bonds) and Non-Financial Enterprise Debt Financing Instruments During the reporting period, the company had no outstanding corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments that were either unexpired or had matured but not been fully redeemed - During the reporting period, the company had no corporate bonds (including enterprise bonds) or non-financial enterprise debt financing instruments[161] Financial Report Audit Report This semi-annual report has not been audited - This semi-annual report has not been audited[162] Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively illustrating the company's financial position, operating results, and cash flow situation at the end of the reporting period - This section includes the consolidated balance sheet, parent company balance sheet, consolidated income statement, parent company income statement, consolidated statement of changes in owners' equity, and parent company statement of changes in owners' equity[162][166][169][174][182][192] Company Basic Information The company was established as a joint-stock company through the overall restructuring of Yunnan Shennong Agricultural Industry Group Co., Ltd., registered on September 11, 2012, with its headquarters in Kunming, Yunnan. With a registered capital of 524,839,012.00 yuan, its main businesses include feed processing and sales, hog farming and sales, hog slaughtering, and fresh pork product sales, operating within the farming industry. These financial statements were approved for issuance by the Board of Directors on August 26, 2025 - The company was established as a joint-stock company through the overall restructuring and change of Yunnan Shennong Agricultural Industry Group Co., Ltd., registered on September 11, 2012, with the Yunnan Provincial Administration for Industry and Commerce, and headquartered in Kunming City, Yunnan Province[197] - The company's registered capital is 524,839,012.00 yuan, with a total of 524,839,012.00 shares, including 1,233,040 restricted tradable shares and 523,605,972 unrestricted tradable shares[197] - The company belongs to the farming industry. Its main business activities are feed processing and sales, hog farming and sales, hog slaughtering, and fresh pork product sales[197] Basis of Preparation of Financial Statements The company's financial statements are prepared on a going concern basis, with no events or circumstances that would cast significant doubt on its ability to continue as a going concern within 12 months from the end of the reporting period - The company's financial statements are prepared on a going concern basis[198] - There are no events or circumstances that would cast significant doubt on the company's ability to continue as a going concern within 12 months from the end of the reporting period[199] Significant Accounting Policies and Accounting Estimates The company adheres to enterprise accounting standards, with the accounting year from January 1 to December 31, and the functional currency being RMB. Based on its actual production and operation characteristics, the company has formulated specific accounting policies and estimates for financial instrument impairment, depreciation of fixed assets, depreciation of right-of-use assets, productive biological assets, amortization of intangible assets, and revenue recognition, also defining materiality standards. This section elaborates on accounting policies and estimation methods for business combinations, consolidated financial statements, joint arrangements, cash and cash equivalents, financial instruments, accounts receivable, inventories, long-term equity investments, investment properties, fixed assets, construction in progress, borrowing costs, biological assets, intangible assets, long-term deferred expenses, contract liabilities, employee compensation, provisions, share-based payments, revenue, contract costs, government grants, deferred income tax assets/liabilities, and leases - The financial statements prepared by the company comply with the requirements of enterprise accounting standards, truly and completely reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows, among other relevant information[201] - The company's accounting year runs from January 1 to December 31 of the Gregorian calendar, and the functional currency is RMB[202][204] - The company has formulated specific accounting policies and estimates for transactions or events such as financial instrument impairment, depreciation of fixed assets, depreciation of right-of-use assets, productive biological assets, amortization of intangible assets, and revenue recognition, based on its actual production and operation characteristics[200] - This section elaborates on the classification, recognition, measurement, and derecognition conditions of financial assets and financial liabilities, as well as financial instrument impairment (expected credit loss model) and fair value determination methods[211][212][213][215][216][217][218] - The company's revenue recognition principle involves identifying distinct performance obligations, determining whether they are satisfied over time or at a point in time, and measuring revenue based on the transaction price allocated to each distinct performance obligation[257][258][259] Taxation The company's main taxes include Value-Added Tax (rates from 1% to 13% or exempt), Urban Maintenance and Construction Tax (rates from 1% to 7%), Corporate Income Tax (rates from 15% to 25% or exempt), Education Surcharge, and Local Education Surcharge. The company and its subsidiaries benefit from multiple tax preferential policies, including VAT exemption for agricultural producers selling self-produced agricultural products, VAT exemption for feed products, VAT exemption for certain fresh meat and egg products in circulation, corporate income tax exemption for income from agriculture, forestry, animal husbandry, and fishery projects, Western Development preferential policy (15% corporate income tax rate), and inclusive tax reduction policies for small and micro enterprises Major Taxes and Tax Rates | Tax Type | Tax Base | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Output tax calculated on sales of goods and taxable services, less input tax | 13%, 9%, 6%, 5%, 3%, 1%, Exempt | | Urban Maintenance and Construction Tax | Actual amount of turnover tax paid | 7%, 5%, 1% | | Corporate Income Tax | Taxable income | 15%, 20%, 25%, Exempt | | Education Surcharge | Actual amount of turnover tax paid | 3% | | Local Education Surcharge | Actual amount of turnover tax paid | 2% | | Property Tax | Ad valorem tax at 1.2% of the original value of the property after deducting 30%; rental-based tax at 12% of rental income | 1.2% or 12% | - The company and its subsidiaries enjoy VAT exemption policies for agricultural producers selling self-produced agricultural products, feed products, and certain fresh meat and egg products[273][274] - Income from the company's subsidiaries engaged in livestock and poultry farming, crop cultivation, and primary processing of agricultural products is exempt from corporate income tax; some subsidiaries enjoy the Western Development preferential corporate income tax rate of 15%, as well as inclusive tax reduction policies for small and micro enterprises[274][275] Notes to Consolidated Financial Statement Items This section details the period-end balances, beginning balances, and current period changes for each item in the consolidated financial statements. Monetary funds at period-end totaled 939.42 million yuan, with 41.99 million yuan restricted. Trading financial assets increased by 130.27 million yuan, primarily derivative financial assets. Accounts receivable at period-end were 82.54 million yuan, with bad debt provisions of 11.05 million yuan. Inventory at period-end was 1.32 billion yuan, including 930.11 million yuan in consumable biological assets. Fixed assets had a period-end book value of 3.24 billion yuan, and construction in progress was 84.08 million yuan. Short-term borrowings were 130.08 million yuan, and long-term borrowings were 290.14 million yuan. Operating revenue was 2.80 billion yuan, operating cost was 2.19 billion yuan. Net profit was 387.52 million yuan, and net cash flow from operating activities was 557.44 million yuan Monetary Funds | Item | Period-End Balance (yuan) | Beginning Balance (yuan) | | :--- | :--- | :--- | | Bank Deposits | 810,301,757.51 | 918,190,293.19 | | Other Monetary Funds | 129,113,470.58 | 124,031,103.67 | | Total | 939,415,228.09 | 1,042,221,396.86 | - Other monetary funds at period-end amounted to 129,113,470.58 yuan, of which 41,997,076.92 yuan was restricted for use, primarily comprising trading margins, ETC deposits, land reclamation deposits, and mine restoration funds[278][358] Trading Financial Assets | Item | Period-End Balance (yuan) | Beginning Balance (yuan) | | :--- | :--- | :--- | | Derivative Financial Assets | 130,265,684.25 | 0.00 | | Total | 130,265,684.25 | 0.00 | Accounts Receivable | Category | Period-End Book Value (yuan) | Beginning Book Value (yuan) | | :--- | :--- | :--- | | Provision for Bad Debts on Individual Basis | 3,842,060.35 | 7,430,000.00 | | Provision for Bad Debts on Portfolio Basis | 78,699,562.71 | 93,778,380.26 | | Total | 82,541,623.06 | 101,208,380.26 | Inventories | Item | Period-End Book Value (yuan) | Beginning Book Value (yuan) | | :--- | :--- | :--- | | Raw Materials | 285,974,869.78 | 256,785,433.94 | | Finished Goods | 104,567,986.26 | 78,766,194.75 | | Consumable Biological Assets | 930,110,944.93 | 964,834,698.70 | | Total | 1,324,667,896.46 | 1,310,100,922.12 | Fixed Assets | Item | Period-End Book Value (yuan) | Beginning Book Value (yuan) | | :--- | :--- | :--- | | Buildings and Structures | 2,209,114,341.32 | 1,954,848,709.74 | | Machinery and Equipment | 892,269,486.65 | 864,835,580.21 | | Transportation Vehicles | 61,937,337.63 | 60,879,797.78 | | Office Furniture (Other) | 72,509,295.26 | 72,240,697.37 | | Total | 3,235,830,460.86 | 2,952,804,785.10 | Operating Revenue and Operating Cost | Item | Current Period Revenue (yuan) | Current Period Cost (yuan) | Prior Period Revenue (yuan) | Prior Period Cost (yuan) | | :--- | :--- | :--- | :--- | :--- | | Main Business | 2,789,276,910.55 | 2,182,896,658.92 | 2,486,777,538.96 | 2,182,766,853.67 | | Other Businesses | 8,349,208.87 | 2,221,723.56 | 7,631,374.17 | 6,694,002.12 | | Total | 2,797,626,119.42 | 2,185,118,382.48 | 2,494,408,913.13 | 2,189,460,855.79 | Reconciliation of Net Profit to Net Cash Flow from Operating Activities | Supplementary Information | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Net Profit | 387,516,418.92 | 123,902,400.79 | | Add: Asset Impairment Provisions | 2,813,939.95 | -42,530,694.07 | | Credit Impairment Losses | -10,055,613.85 | 5,047,984.95 | | Depreciation of Fixed Assets, Depletion of Oil and Gas Assets, Depreciation of Productive Biological Assets | 208,581,879.27 | 172,297,963.62 | | Amortization of Right-of-Use Assets | 15,815,115.15 | 17,882,618.66 | | Amortization of Intangible Assets | 3,043,654.98 | 2,393,030.43 | | Amortization of Long-Term Deferred Expenses | 10,077,051.74 | 9,664,501.66 | | Losses (Gains are filled with "-") on Disposal of Fixed Assets, Intangible Assets, and Other Long-Term Assets | -174,271.01 | 1,081,224.27 | | Losses (Gains are filled with "-") on Scrapping of Fixed Assets | 12,360,001.91 | 13,638,614.96 | | Losses (Gains are filled with "-") from Fair Value Changes | -2,045,024.25 | 887,907.58 | | Financial Expenses (Gains are filled with "-") | 13,461,319.35 | 18,295,230.37 | | Investment Losses (Gains are filled with "-") | -2,406,064.27 | -1,988,373.17 | | Decrease in Deferred Income Tax Assets (Increase is filled with "-") | -436,440.74 | -1,749,129.31 | | Decrease in Inventories (Increase is filled with "-") | -17,380,914.29 | 92,096,789.40 | | Decrease in Operating Receivables (Increase is filled with "-") | -133,034,714.86 | -213,804,272.05 | | Increase in Operating Payables (Decrease is filled with "-") | 66,791,602.45 | 124,546,737.75 | | Other | 2,516,408.28 | -25,400,691.38 | | Net Cash Flow from Operating Activities | 557,444,348.73 | 296,261,844.46 | R&D Expenses The company's total R&D expenses for the current period amounted to 6,160,322.06 yuan, all of which were expensed. The main components included employee compensation, material and fuel costs, depreciation and amortization, and share-based payment expenses. R&D expenses decreased compared to the prior year, primarily due to reduced employee compensation and equity incentive expenses R&D Expense Composition | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Employee Compensation | 2,950,572.62 | 3,111,828.60 | | Share-Based Payment Expenses | 83,150.94 | 249,149.74 | | Material and Fuel Costs | 2,122,392.58 | 2,009,657.35 | | Depreciation and Amortization | 713,249.35 | 808,026.23 | | Other | 290,956.57 | 493,061.73 | | Total | 6,160,322.06 | 6,671,723.65 | | Of which: Expensed R&D Expenditures | 6,160,322.06 | 6,671,723.65 | | Capitalized R&D Expenditures | 0.00 | 0.00 | Changes in Consolidation Scope During the reporting period, the company added 7 wholly-owned subsidiaries, including Wenshan Shennong Animal Husbandry Co., Ltd. and Pingbian Shennong Animal Husbandry Co., Ltd., primarily engaged in livestock and poultry farming and trading businesses. Concurrently, Yunnan Shennong Luquan Pig Industry Co., Ltd. was deregistered Increase in Consolidation Scope | Company Name | Method of Equity Acquisition | Date of Equity Acquisition | Capital Contribution (10,000 yuan) | % of Capital Contribution | | :--- | :--- | :--- | :--- | :--- | | Wenshan Shennong Animal Husbandry Co., Ltd. | Newly established subsidiary | 2025/3/27 | 1,000.00 | 100.00 | | Pingbian Shennong Animal Husbandry Co., Ltd. | Newly established subsidiary | 2025/5/14 | 5,000.00 | 100.00 | | Eryuan Shennong Pig Industry Development Co., Ltd. | Newly established subsidiary | 2025/6/26 | 200.00 | 100.00 | | Tengchong Shennong Pig Industry Development Co., Ltd. | Newly established subsidiary | 2025/6/26 | 200.00 | 100.00 | | Huaping Shennong Pig Industry Development Co., Ltd. | Newly established subsidiary | 2025/6/26 | 1,000.00 | 100.00 | | Yanshan Shennong Pig Industry Development Co., Ltd. | Newly established subsidiary | 2025/6/27 | 200.00 | 100.00 | | Cangyuan Shennong Trading Co., Ltd. | Newly established subsidiary | 2025/6/16 | 100.00 | 100.00 | Decrease in Consolidation Scope | Company Name | Method of Equity Disposal | Date of Equity Disposal | Net Profit from Beginning of Period to Disposal Date (yuan) | | :--- | :--- | :--- | :--- | | Yunnan Shennong Luquan Pig Industry Co., Ltd. | Deregistration of subsidiary | 2025/3/26 | 46,648.75 | Interests in Other Entities The company owns 37 wholly-owned subsidiaries, primarily engaged in feed processing, livestock and poultry farming, slaughtering, and trading businesses. Additionally, the company holds an interest in a joint venture, PIC (Qiannan) Agricultural Technology Co., Ltd., with a period-end book value of 13,945,105.31 yuan and investment income of 1,082,696.71 yuan recognized in the cur