顺鑫农业(000860) - 2025 Q2 - 季度财报

Item 1. Important Notice, Table of Contents, and Definitions This section provides essential disclaimers, the report's structure, and definitions of key terms used throughout the document Important Notice The company's board, supervisory board, and senior management guarantee the report's accuracy and completeness, with no plans for cash dividends, bonus shares, or capital reserve conversions - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Table of Contents This section outlines the nine main chapters of the report and their respective starting page numbers List of Reference Documents This section details the availability of signed financial statements, the original semi-annual report, and publicly disclosed company documents for review - Reference documents include signed and sealed financial statements, the original semi-annual report signed by the legal representative, and original publicly disclosed company documents[8] Definitions This section provides clear definitions for frequently used terms within the report, including company, controlling shareholder, and key subsidiaries - The company's controlling shareholder is Beijing Shunxin Holdings Group Co., Ltd[9] - Key branches include Niulanshan Distillery, Pengcheng Food, Innovation Food, and Xiaodian Pig Breeding Farm[9] - Key subsidiaries include Pengcheng Supply Chain, Ningcheng Laojiao, and Dazhou Pengcheng[9] Item 2. Company Profile and Key Financial Indicators This section presents the company's fundamental information and a summary of its key financial performance metrics and accounting data I. Company Profile This section provides essential corporate details, including the company's stock information and legal representative - Stock Abbreviation: Shunxin Agriculture, Stock Code: 000860, Listing Exchange: Shenzhen Stock Exchange[11] - Legal Representative: Li Yinglin[11] II. Contact Person and Information This section lists the contact details for the Board Secretary and Securities Affairs Representative, including their names and office address - Board Secretary: Kang Tao, Securities Affairs Representative: Xie Chuang[12] - Contact Address: Shunxin International Business Center, Building 1, Courtyard 1, Zhanqian Street, Shunyi District, Beijing[12] III. Other Information This section confirms that the company's contact information, disclosure channels, and document storage locations remained unchanged during the reporting period - The company's contact information, information disclosure, and document storage locations remained unchanged during the reporting period[13][14][15] IV. Key Accounting Data and Financial Indicators This section presents a comparative overview of the company's key accounting data and financial indicators for the current and prior reporting periods, highlighting significant year-on-year declines in operating revenue and net profit Key Accounting Data and Financial Indicators (Current Period vs Prior Period) | Indicator | Current Period (CNY) | Prior Period (CNY) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 4,592,689,456.32 | 5,686,512,595.08 | -19.24% | | Net Profit Attributable to Shareholders of Listed Company | 172,887,260.88 | 422,573,710.95 | -59.09% | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | 177,443,104.26 | 421,980,750.74 | -57.95% | | Net Cash Flow from Operating Activities | -950,826,571.63 | -1,017,775,678.93 | 6.58% | | Basic Earnings Per Share | 0.2331 | 0.5697 | -59.08% | | Diluted Earnings Per Share | 0.2331 | 0.5697 | -59.08% | | Weighted Average Return on Net Assets | 2.43% | 6.04% | -3.61% | | End of Current Period vs End of Prior Year | | | | | Total Assets | 13,002,985,617.66 | 14,994,542,079.57 | -13.28% | | Net Assets Attributable to Shareholders of Listed Company | 7,075,519,370.04 | 7,013,897,157.51 | 0.88% | V. Differences in Accounting Data Under Domestic and Overseas Accounting Standards This section confirms that the company's financial reports show no discrepancies in net profit and net assets when compared under international or overseas accounting standards versus Chinese accounting standards - The company's financial report shows no differences in net profit and net assets under domestic and overseas accounting standards[17][18] VI. Non-recurring Gains and Losses and Amounts This section itemizes the non-recurring gains and losses for the reporting period, totaling -4.5558 million CNY, primarily from asset disposals and other non-operating income and expenses Non-recurring Gains and Losses and Amounts | Item | Amount (CNY) | | :--- | :--- | | Gains and Losses from Disposal of Non-current Assets | -5,133,336.89 | | Other Non-operating Income and Expenses Apart from the Above | 531,272.53 | | Less: Income Tax Impact | -2,550.29 | | Impact on Minority Interests (After Tax) | -43,670.69 | | Total | -4,555,843.38 | - The company has no other profit and loss items that meet the definition of non-recurring gains and losses, nor does it classify non-recurring gains and losses as recurring gains and losses[20][21] Item 3. Management Discussion and Analysis This section provides a comprehensive analysis of the company's principal businesses, core competitiveness, financial performance, and risk management strategies I. Principal Businesses Engaged by the Company During the Reporting Period The company's main operations include liquor production and sales under "Niulanshan" and "Ningcheng" brands, and pork industry activities under "Xiaodian" and "Pengcheng" brands, with liquor revenue decreasing by 23.25% and pork revenue reaching 889 million CNY - The company's principal businesses include liquor brewing and sales ("Niulanshan", "Ningcheng" brands) and breeding pig farming, hog raising, slaughtering, and meat product processing ("Xiaodian", "Pengcheng" brands)[23] - The liquor industry achieved operating revenue of 3.606 billion CNY, a year-on-year decrease of 23.25%[24] - The pork industry segment achieved operating revenue of 889 million CNY, with slaughtering business contributing 782 million CNY and livestock breeding 107 million CNY[26] 1. Liquor Industry The liquor industry faces intense competition and shrinking production, prompting the company to implement product, marketing, and brand innovations, yet liquor revenue decreased by 23.25% - The liquor industry as a whole shows a trend of production reduction and squeezed growth, with intense competition[23] - The company's liquor industry operating revenue was 3.606 billion CNY, a year-on-year decrease of 23.25%[24] - The company addresses market challenges through product innovation (upgraded formulas, visual enhancements), marketing innovation (new media communication, cultural tourism integration), and brand expansion (preparation for national geographical indication product protection demonstration zone)[25] Liquor Product Categories and Price Standards | Product Category | Classification Standard (Price Range) | | :--- | :--- | | High-end Liquor | ≥50 CNY/500ml | | Mid-range Liquor | ≥10＜50 CNY/500ml | | Low-end Liquor | ＜10 CNY/500ml | Operating Revenue, Cost, and Gross Margin of Liquor Sales by Product Category | Product Category | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Operating Cost (%) | YoY Change in Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | High-end Liquor | 529,121,947.70 | 162,323,394.97 | 69.32% | -12.32% | -5.70% | -2.16% | | Mid-range Liquor | 498,443,986.77 | 288,492,592.83 | 42.12% | -21.87% | -19.18% | -1.93% | | Low-end Liquor | 2,578,017,200.54 | 1,626,396,376.15 | 36.91% | -25.41% | -24.53% | -0.73% | 2. Pork Industry The pork industry faces abundant supply, weak demand, and declining prices, prompting the company to adjust strategies, innovate products, enhance brand marketing, and improve breeding efficiency to maintain competitiveness - The pork industry faces abundant hog supply, subdued consumer demand, and a downward trend in hog prices[26] - The company's pork industry segment achieved operating revenue of 889 million CNY, with slaughtering business contributing 782 million CNY and livestock breeding 107 million CNY[26] - The company responds to market competition by adjusting operating strategies (dynamically adjusting production pace, controlling frozen product risks), promoting product innovation (improving product tiers, innovating sales models), and strengthening brand marketing (brand storytelling, integrated marketing)[26][27] - The breeding segment enhances production efficiency (updating high-yield, high-quality breeding stock, refined management), improves product structure (increasing breeding pig salida ratio), elevates brand quality (increasing R&D investment, patent authorization), and advances key projects (building a national-level core breeding farm)[27] Brand Operations Niulanshan's brand operations focus on upgrading, promoting strategic products, executing thematic marketing campaigns, and building brand culture through diverse content and integrated online-offline engagement - Niulanshan brand operations focus on brand upgrading, promotion of strategic single product "Golden Label Niulanshan", thematic marketing activities, and brand culture building[28] - Diversified content dissemination through "Yanhuo Renjian" short drama series, popular drama placements, and new media platforms enhances consumer interaction[28] Main Sales Models The company primarily uses a distribution model for liquor sales, with deep ties to platform merchants in Beijing and regional major distributors in other markets, operating on a prepayment basis - The company's liquor sales primarily adopt a distribution model, with deep ties to platform merchants in the Beijing market and a regional major distributor model in external markets[28] - The settlement method is prepayment, where the company arranges production and delivery after distributors make payments[32] - The top five distribution clients in the liquor industry generated total sales revenue of 699 million CNY, accounting for 19.40% of sales[33] Procurement Models and Content The company's procurement strategy involves both market and strategic purchasing, covering raw and auxiliary materials, packaging, and finished liquor Main Procurement Models and Content | Procurement Model | Procurement Content | Amount of Main Procurement Content (CNY) | | :--- | :--- | :--- | | Market Procurement | Raw and Auxiliary Materials | 320,183,056.80 | | Market Procurement | Packaging Materials | 266,756,458.49 | | Strategic Procurement | Finished Liquor | 560,306,673.97 | | Market Procurement | Fuel and Other | 16,111,179.46 | Main Production Models The company primarily relies on self-production across its three bases in Beijing, Hebei, Sichuan, and Shanxi, with production plans driven by sales orders and market demand forecasts - The company's production model is primarily self-production, with three production bases established in Beijing, Xianghe (Hebei), Chengdu (Sichuan), and Luliang (Shanxi)[34] - Production departments formulate production plans based on sales orders or market demand forecasts[34] Composition of Liquor Operating Costs | Operating Cost Item | Amount (CNY) | Proportion | | :--- | :--- | :--- | | Raw Materials | 667,637,295.73 | 32.14% | | Finished Liquor | 1,177,001,836.80 | 56.66% | | Labor Costs | 79,892,545.46 | 3.85% | | Depreciation | 50,267,710.71 | 2.42% | | Transportation Costs | 85,472,677.42 | 4.11% | | Other | 16,940,297.83 | 0.82% | Production Volume and Inventory During the reporting period, the production and sales volumes of key liquor products decreased year-on-year, leading to a significant increase in inventory for some products, with finished liquor inventory reaching 24,370.38 kiloliters YoY Changes in Production Volume, Sales Volume, and Inventory of Main Products | Main Product | YoY Change in Production Volume (%) | YoY Change in Sales Volume (%) | YoY Change in Inventory (%) | | :--- | :--- | :--- | :--- | | 42% vol 500ml Niulanshan Chenniang Liquor | -58.63% | -33.05% | 652.13% | | 52% vol 500ml Niulanshan Chenniang Baijiu | -37.75% | -14.81% | 14.97% | | 42% vol 265ml Niulanshan Chenniang Liquor | -29.99% | -29.58% | -2.01% | | 36% vol 400ml Bainian Niulanshan Liquor | -20.33% | -8.56% | -15.21% | | 52% vol 400ml Bainian Niulanshan Baijiu | -23.92% | 3.12% | -7.23% | | 42.3% vol (Golden Label) 500ml Niulanshan Chenniang Baijiu | -30.51% | -5.81% | -34.50% | - The company's finished liquor inventory at period-end was 24,370.38 kiloliters, and semi-finished liquor inventory was 30,614.43 kiloliters[36] - Niulanshan Distillery's designed capacity is 810,000 kiloliters, with actual production capacity of 113,118 kiloliters in the first half of the year[37] II. Analysis of Core Competitiveness The company's core competitiveness remained stable, driven by its liquor industry's brand, quality, and marketing network, alongside the pork industry's integrated supply chain and food safety advantages - The core competitiveness of the liquor industry lies in the "Erguotou" category advantage, "Niulanshan" brand and quality advantage, humanistic marketing, and national marketing network[38] - The core competitiveness of the pork industry lies in its complete industrial chain integrating breeding pig farming, hog raising, slaughtering and processing, deep processing of meat products, and cold chain logistics distribution, as well as a scientific food safety control system and R&D advantages[38] - The company's core competitiveness did not undergo significant changes during the reporting period[38] III. Analysis of Principal Business The company's principal business revenue decreased by 19.24% year-on-year, primarily due to a 23.25% decline in liquor industry revenue, while financial expenses significantly decreased by 133.75% due to reduced interest costs and increased interest income YoY Changes in Key Financial Data | Indicator | Current Period (CNY) | Prior Period (CNY) | YoY Change (%) | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 4,592,689,456.32 | 5,686,512,595.08 | -19.24% | | | Operating Cost | 3,014,680,199.95 | 3,624,579,150.28 | -16.83% | | | Selling Expenses | 439,448,975.94 | 456,580,784.76 | -3.75% | | | Administrative Expenses | 359,859,864.22 | 357,527,533.66 | 0.65% | | | Financial Expenses | -12,471,276.51 | 36,953,205.39 | -133.75% | Primarily due to decreased interest expenses and increased interest income | | Income Tax Expense | 132,447,495.49 | 218,008,941.62 | -39.25% | Primarily due to decreased profit | | R&D Investment | 13,848,556.17 | 14,875,570.63 | -6.90% | | | Net Cash Flow from Operating Activities | -950,826,571.63 | -1,017,775,678.93 | 6.58% | | | Net Cash Flow from Investing Activities | -41,781,001.55 | -31,510,210.15 | -32.60% | Primarily due to increased cash payments for the acquisition of fixed assets compared to the same period last year | | Net Cash Flow from Financing Activities | -138,965,852.86 | -204,281,772.55 | 31.97% | Primarily due to the combined effect of decreased cash payments for debt repayment and increased dividend distribution in the current period | | Net Increase in Cash and Cash Equivalents | -1,131,573,426.04 | -1,253,567,661.63 | 9.73% | | - There were no significant changes in the company's profit composition or sources of profit during the reporting period[41] Operating Revenue Composition (by Industry, Product, Region) | Category | Current Period Amount (CNY) | Proportion of Operating Revenue | Prior Period Amount (CNY) | Proportion of Operating Revenue | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | By Industry | | | | | | | Liquor Industry | 3,605,583,135.01 | 78.51% | 4,697,543,260.82 | 82.61% | -23.25% | | Slaughtering Industry | 781,791,454.66 | 17.02% | 785,658,951.89 | 13.82% | -0.49% | | Other | 205,314,866.65 | 4.47% | 203,310,382.37 | 3.57% | 0.99% | | By Product | | | | | | | Liquor | 3,605,583,135.01 | 78.51% | 4,697,543,260.82 | 82.61% | -23.25% | | Pork | 781,791,454.66 | 17.02% | 785,658,951.89 | 13.82% | -0.49% | | Other | 205,314,866.65 | 4.47% | 203,310,382.37 | 3.57% | 0.99% | | By Region | | | | | | | Beijing Region | 1,393,570,370.95 | 30.34% | 1,601,217,698.25 | 28.16% | -12.97% | | External Regions | 3,199,119,085.37 | 69.66% | 4,085,294,896.83 | 71.84% | -21.69% | Composition of Selling Expenses in the Liquor Industry | Item | Current Period Amount (CNY) | Prior Period Amount (CNY) | Change Rate (%) | | :--- | :--- | :--- | :--- | | Staff Wages | 11,325,777.22 | 12,947,210.41 | -12.52% | | Promotion Expenses | 227,338,914.73 | 216,246,544.73 | 5.13% | | Advertising Expenses | 152,722,503.66 | 171,407,887.60 | -10.90% | | Other | 4,265,190.54 | 5,027,989.30 | -15.17% | | Total | 395,652,386.15 | 405,629,632.04 | -2.46% | Advertising Placement in the Liquor Industry | Advertising Method | Amount (CNY) | | :--- | :--- | | Online Advertising | 9,816,733.93 | | Offline Advertising | 45,203,042.25 | | TV Advertising | 96,348,070.56 | | Other Methods | 1,354,656.92 | IV. Analysis of Non-Principal Business During the reporting period, the company's non-principal business generated 772,477.23 CNY in non-operating income and 5,376,943.30 CNY in non-operating expenses, representing a minor proportion of total profit Analysis of Non-Principal Business | Item | Amount (CNY) | Proportion of Total Profit | | :--- | :--- | :--- | | Non-operating Income | 772,477.23 | 0.25% | | Non-operating Expenses | 5,376,943.30 | 1.72% | V. Analysis of Assets and Liabilities The company's total assets decreased by 13.28% year-on-year, primarily due to reductions in inventory and contract liabilities, while short-term borrowings and construction in progress increased Significant Changes in Asset Composition | Item | Amount at End of Current Period (CNY) | Proportion of Total Assets | Amount at End of Prior Year (CNY) | Proportion of Total Assets | Change in Proportion | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Capital | 5,816,989,870.05 | 44.74% | 6,948,788,481.84 | 46.34% | -1.60% | | | Accounts Receivable | 29,372,048.74 | 0.23% | 20,161,639.51 | 0.13% | 0.10% | Primarily due to increased accounts receivable | | Inventory | 1,473,503,375.14 | 11.33% | 2,292,364,257.53 | 15.29% | -3.96% | Primarily due to liquor sales, leading to decreased inventory | | Investment Properties | 959,203,326.69 | 7.38% | 977,616,032.47 | 6.52% | 0.86% | | | Fixed Assets | 2,844,297,131.30 | 21.87% | 2,972,680,913.28 | 19.83% | 2.04% | | | Construction in Progress | 93,682,543.17 | 0.72% | 47,255,341.07 | 0.32% | 0.40% | Primarily due to increased construction of pigpens | | Right-of-Use Assets | 22,788,242.04 | 0.18% | 34,182,100.80 | 0.23% | -0.05% | Primarily due to periodic recognition of depreciation on right-of-use assets | | Short-term Borrowings | 3,337,825,360.28 | 25.67% | 2,789,380,416.70 | 18.60% | 7.07% | | | Contract Liabilities | 385,382,892.25 | 2.96% | 1,757,894,437.04 | 11.72% | -8.76% | Primarily due to contract completion and transfer of advance receipts to revenue | | Long-term Borrowings | 626,175,492.20 | 4.82% | 1,422,835,667.84 | 9.49% | -4.67% | Primarily due to the replacement of long-term borrowings and an increase in long-term borrowings due within one year | | Lease Liabilities | 15,295,461.24 | 0.12% | 16,091,450.48 | 0.11% | 0.01% | | - The company had no major overseas assets, assets and liabilities measured at fair value, or restricted asset rights during the reporting period[49] VI. Analysis of Investment Status During the reporting period, the company did not engage in any significant equity investments, non-equity investments, securities investments, or derivative investments, nor did it utilize any raised funds - The company had no securities investments, derivative investments, significant equity investments, significant non-equity investments, or use of raised funds during the reporting period[49][50][51] VII. Significant Asset and Equity Sales The company did not engage in any significant asset or equity sales during the reporting period - The company did not sell significant assets or equity during the reporting period[52][53][54] VIII. Analysis of Major Holding and Participating Companies This section details the financial performance of major subsidiaries impacting the company's net profit by over 10%, noting the deregistration of two subsidiaries with no substantial impact on overall operations Major Subsidiaries and Associates with Over 10% Impact on Company's Net Profit | Company Name | Company Type | Principal Business | Registered Capital (CNY 10,000) | Total Assets (CNY 10,000) | Net Assets (CNY 10,000) | Operating Revenue (CNY 10,000) | Operating Profit (CNY 10,000) | Net Profit (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shaanxi Shunxin Breeding Pig Selection Co., Ltd. | Subsidiary | Breeding, Livestock Farming, Planting, Feed Processing | 3000 | 23,164.44 | 21,045.85 | 6,945.59 | 2,081.16 | 2,081.16 | | Beijing Shunxin Tengfei Paper Products Co., Ltd. | Subsidiary | Paper Product Processing, Manufacturing | 1200 | 7,170.31 | 5,931.73 | 4,219.78 | 138.81 | 71.80 | - During the reporting period, Hanzhong Shunxin Hog Industry Alliance Service Co., Ltd. and Inner Mongolia Shunxin Agriculture Xiaodian Pig Breeding Co., Ltd. were deregistered, which had no substantial impact on the company's overall business and performance[55] IX. Information on Structured Entities Controlled by the Company The company confirms that it did not control any structured entities during the reporting period - The company had no controlled structured entities during the reporting period[56] X. Risks Faced by the Company and Countermeasures The company addresses significant risks in both its liquor (industry differentiation, shrinking consumption, new product development, IP infringement) and pork (market competition, price volatility, food safety, disease outbreaks) industries with specific mitigation strategies - Liquor industry risks and countermeasures: intensified industry differentiation (conduct market insights and consumer demand research, enhance competitiveness), shrinking consumption scenarios (adapt to changes in consumption scenarios, product innovation, increase marketing promotion), new product market development (closely monitor market conditions, timely adjust operating strategies), intellectual property infringement (strengthen anti-counterfeiting measures, cooperate with law enforcement to combat infringement)[56] - Pork industry risks and countermeasures: intensified industry competition (optimize operating model, increase proportion of high-gross margin products, enhance profitability), hog price fluctuations (optimize product structure, reduce costs and increase efficiency), food safety production (establish and improve a regular supervision and inspection mechanism for product quality, ensure food safety), breeding disease risks (formulate and implement prevention and control systems and procedures, regularly monitor antibody levels)[57] XI. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not established a market value management system nor disclosed any plans for valuation enhancement - The company has not formulated a market value management system nor disclosed a valuation enhancement plan[58] XII. Implementation of "Quality and Return Dual Improvement" Action Plan The company has not released any announcements regarding the "Quality and Return Dual Improvement" action plan - The company has not disclosed an announcement regarding the "Quality and Return Dual Improvement" action plan[58] Item 4. Corporate Governance, Environment, and Society This section covers the company's governance structure, environmental disclosures, and social responsibility initiatives, including changes in key personnel and profit distribution plans I. Changes in Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the company's directors, supervisors, or senior management personnel - There were no changes in the company's directors, supervisors, and senior management during the reporting period[60] II. Profit Distribution and Capital Reserve Conversion to Share Capital in the Current Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[61] III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures During the reporting period, the company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures in place - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures during the reporting period[62] IV. Environmental Information Disclosure The company and its key subsidiaries are listed as enterprises required to disclose environmental information by law, with their respective reports available for public access - The company and its key subsidiaries (Niulanshan Distillery, Pengcheng Food Branch) are included in the list of enterprises required to disclose environmental information by law[63] - Both enterprises provided inquiry indexes for their legally disclosed environmental information reports[63] V. Social Responsibility The company actively fulfills its state-owned enterprise responsibilities by promoting Beijing-Inner Mongolia cooperation, supporting rural revitalization, and engaging in consumer assistance initiatives - The company actively fulfills its state-owned enterprise responsibilities, promotes Beijing-Inner Mongolia cooperation, and contributes to rural revitalization[64] - During the reporting period, a consumer assistance New Year action was carried out, involving the purchase of consumer assistance products[64] Item 5. Significant Matters This section details significant events and compliance matters, including commitments, fund occupation, guarantees, audits, litigation, and related party transactions I. Commitments Fulfilled and Overdue Unfulfilled by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and the Company During and as of the End of the Reporting Period During the reporting period, there were no fulfilled or overdue unfulfilled commitments by the company's actual controller, shareholders, related parties, acquirers, or the company itself - During the reporting period, there were no commitments by relevant parties that were fulfilled or overdue and unfulfilled[66] II. Non-operating Fund Occupation by Controlling Shareholder and Other Related Parties of the Listed Company During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company - During the reporting period, there was no non-operating fund occupation by the controlling shareholder or other related parties of the listed company[67] III. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[68] IV. Appointment and Dismissal of Accounting Firms The company's semi-annual report was unaudited - The company's semi-annual report was unaudited[69] V. Explanation by the Board of Directors and Supervisory Board on the Accounting Firm's "Non-standard Audit Report" for the Current Period There was no non-standard audit report for the company during the reporting period - There was no non-standard audit report for the company during the reporting period[70] VI. Explanation by the Board of Directors on Matters Related to the "Non-standard Audit Report" for the Prior Year There was no non-standard audit report for the company during the reporting period - There was no non-standard audit report for the company during the reporting period[70] VII. Bankruptcy and Reorganization Matters The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[70] VIII. Litigation Matters During the reporting period, the company had no significant litigation or arbitration, but was involved in three other lawsuits totaling approximately 9.7723 million CNY for contract disputes, unjust enrichment, and trademark infringement - The company had no significant litigation or arbitration matters during the reporting period[71] Other Litigation Matters | Basic Information of Litigation (Arbitration) | Amount Involved (CNY 10,000) | Whether Provision for Liabilities Formed | Progress of Litigation (Arbitration) | | :--- | :--- | :--- | :--- | | Contract dispute between Beijing Shunxin Agriculture Co., Ltd. Innovation Food Branch and Qidian Tongzhou Catering Management (Beijing) Co., Ltd. | 809.16 | No | Currently awaiting second hearing | | Unjust enrichment dispute between Beijing Shunxin Agriculture Co., Ltd. and Beijing Chunyu Greening Engineering Co., Ltd. | 120 | No | Currently being heard in Beijing No. 3 Intermediate People's Court | | Criminal incidental civil dispute over trademark infringement by Beijing Shunxin Agriculture Co., Ltd. Niulanshan Distillery against Tang Moumou | 48.07 | No | Currently awaiting court hearing | IX. Penalties and Rectification The company had no penalties or rectification matters during the reporting period - The company had no penalties or rectification matters during the reporting period[73] X. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller The company, its controlling shareholder, and actual controller maintained a good integrity status during the reporting period, with no issues requiring disclosure - The company had no integrity issues requiring disclosure during the reporting period[74] XI. Significant Related Party Transactions The company engaged in ordinary course related party transactions totaling 22.9677 million CNY for sales, services, and purchases, all within approved limits, with no significant asset/equity transactions, joint investments, or related party debt/financial company dealings Related Party Transactions Related to Ordinary Operations (Partial Examples) | Related Party | Type of Related Party Transaction | Content of Related Party Transaction | Amount of Related Party Transaction (CNY 10,000) | Proportion of Similar Transactions | Approved Transaction Limit (CNY 10,000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Shunxin Holdings and its Affiliates | Sales of Products/Goods to Related Parties | Company Products | 48.94 | 100.00% | 500 | | Beijing Shunxin Holdings Group Co., Ltd. | Provision of Services to Related Parties | Lease and Property Fees | 153.98 | 52.80% | 400 | | Beijing Shunxin Mingzhu Cultural Development Co., Ltd. | Acceptance of Services from Related Parties | Advertising Fees | 599.69 | 41.08% | 1,200 | | Beijing Shunxin Ruinong Seed Industry Co., Ltd. | Purchase of Products/Goods from Related Parties | Materials | 332.01 | 66.90% | 2,000 | | Total | | | 2,296.77 | | 8,770 | - During the reporting period, the company had no related party transactions involving asset or equity acquisition/disposal, no joint external investments, no related party creditor-debtor relationships, and no dealings with related financial companies[76][77][78][79][80][81] XII. Significant Contracts and Their Fulfillment The company had no trusteeship, contracting, or leasing arrangements, but provided guarantees to subsidiaries totaling 60.4835 million CNY, representing 0.85% of net assets, with no other significant contracts or entrusted wealth management - The company had no trusteeship, contracting, or leasing situations during the reporting period[82][83][84] Company's Guarantees to Subsidiaries | Name of Guaranteed Party | Guarantee Limit (CNY 10,000) | Actual Guarantee Amount (CNY 10,000) | Type of Guarantee | Guarantee Period | Whether Fulfilled | Whether Related Party Guarantee | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hebei Shunxin Xiaodian Animal Husbandry Development Co., Ltd. | 7,836.4 | 6,048.35 | Joint and Several Liability Guarantee | 6 Years | No | No | - The total actual guarantee balance at the end of the reporting period was 60.4835 million CNY, accounting for 0.85% of the company's net assets[87] - The company had no entrusted wealth management or other significant contracts during the reporting period[88][89] XIII. Explanation of Other Significant Matters The company had no other significant matters requiring explanation during the reporting period - The company had no other significant matters requiring explanation during the reporting period[90] XIV. Significant Matters of Company Subsidiaries The company's subsidiaries had no significant matters during the reporting period - The company's subsidiaries had no significant matters[91] Item 6. Share Changes and Shareholder Information This section details the company's share capital structure, shareholder composition, and any changes in shareholdings or control during the reporting period I. Share Change Status During the reporting period, the company's total shares and share capital structure remained unchanged, with 741,766,989 unrestricted shares accounting for 100% of the total Share Change Status | Item | Quantity Before Change (Shares) | Proportion Before Change | Increase/Decrease in Current Change (Shares) | Quantity After Change (Shares) | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 0 | 0.00% | 0 | 0 | 0.00% | | II. Unrestricted Shares | 741,766,989 | 100.00% | 0 | 741,766,989 | 100.00% | | III. Total Shares | 741,766,989 | 100.00% | 0 | 741,766,989 | 100.00% | - There were no matters requiring disclosure regarding the reasons for share changes, approval status, transfer status, progress of share repurchases, or impact on financial indicators during the reporting period[94] II. Securities Issuance and Listing The company had no securities issuance or listing activities during the reporting period - The company had no securities issuance or listing during the reporting period[95] III. Number of Shareholders and Shareholding Status At the end of the reporting period, the company had 98,543 common shareholders, with Beijing Shunxin Holdings Group Co., Ltd. as the largest shareholder holding 38.36%, and a significant proportion of institutional investors among the top ten shareholders - Total number of common shareholders at the end of the reporting period: 98,543[96] Shareholding Status of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Proportion | Number of Shares Held at End of Reporting Period (Shares) | Changes During Reporting Period (Shares) | Number of Unrestricted Shares Held (Shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Shunxin Holdings Group Co., Ltd. | State-owned Legal Person | 38.36% | 284,511,168 | 0 | 284,511,168 | | China Merchants CSI Liquor Index Graded Securities Investment Fund | Other | 4.93% | 36,585,444 | 0 | 36,585,444 | | Abu Dhabi Investment Authority | Overseas Legal Person | 1.51% | 11,199,980 | 400,000 | 11,199,980 | | Penghua CSI Liquor ETF | Other | 1.47% | 10,924,761 | 1,221,200 | 10,924,761 | | Xie Jieyun | Domestic Natural Person | 1.35% | 10,028,284 | -9,200 | 10,028,284 | | E Fund Consumer Industry Stock Investment Fund | Other | 0.77% | 5,744,835 | -26,669,299 | 5,744,835 | | Southern CSI 1000 ETF | Other | 0.65% | 4,798,299 | 511,600 | 4,798,299 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.40% | 2,981,989 | -870,937 | 2,981,989 | | Huaxia CSI 1000 ETF | Other | 0.38% | 2,826,700 | 526,200 | 2,826,700 | | GF CSI 1000 ETF | Other | 0.31% | 2,265,300 | 489,300 | 2,265,300 | - There are no related party relationships or concerted action relationships between the controlling shareholder and other shareholders[96] IV. Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, there were no changes in the shareholdings of the company's directors, supervisors, or senior management personnel - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[98] V. Changes in Controlling Shareholder or Actual Controller Neither the company's controlling shareholder nor its actual controller changed during the reporting period - Neither the company's controlling shareholder nor its actual controller changed during the reporting period[99] Item 7. Bond-Related Information This section provides details on the company's bond issuances, including corporate bonds, company bonds, non-financial enterprise debt financing instruments, and convertible bonds, along with key financial indicators I. Corporate Bonds The company had no corporate bonds during the reporting period - The company had no corporate bonds during the reporting period[102] II. Company Bonds The company had no company bonds during the reporting period - The company had no company bonds during the reporting period[103] III. Non-Financial Enterprise Debt Financing Instruments The company issued 500 million CNY in 2025 First Tranche Medium-Term Notes with an interest rate of 1.87%, and reported no overdue bonds, credit rating adjustments, or changes in guarantee plans during the period Basic Information on Non-Financial Enterprise Debt Financing Instruments | Bond Name | Bond Abbreviation | Bond Code | Issue Date | Interest Commencement Date | Maturity Date | Bond Balance (CNY 10,000) | Interest Rate | Principal and Interest Repayment Method | Trading Venue | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Beijing Shunxin Agriculture Co., Ltd. 2025 First Tranche Medium-Term Notes | 25 Shunxin Agri MTN001 | 102501460 | July 09, 2025 | July 10, 2025 | July 10, 2025 | 50,000 | 1.87% | Interest paid annually, principal repaid at maturity | Interbank Bond Market | - During the reporting period, there were no overdue unpaid bonds, changes in credit rating results, or changes in guarantee status, debt repayment plans, and other debt servicing support measures[105][106] IV. Convertible Corporate Bonds The company had no convertible corporate bonds during the reporting period - The company had no convertible corporate bonds during the reporting period[107] V. Consolidated Statement Loss Exceeding 10% of Net Assets at End of Prior Year The company's consolidated statement loss did not exceed 10% of net assets at the end of the prior year during the reporting period - The company's consolidated statement loss did not exceed 10% of net assets at the end of the prior year during the reporting period[108] VI. Key Accounting Data and Financial Indicators for the Company's Last Two Years as of the End of the Reporting Period This section presents the company's key accounting data and financial indicators for the past two years, showing a decrease in the asset-liability ratio but significant declines in net profit after non-recurring items and interest coverage ratio Key Accounting Data and Financial Indicators for the Company's Last Two Years | Item | End of Current Period | End of Prior Year | Change from Prior Year-End to Current Period-End | | :--- | :--- | :--- | :--- | | Current Ratio | 1.60 | 1.57 | 1.91% | | Asset-Liability Ratio | 45.22% | 52.95% | -7.73% | | Quick Ratio | 1.31 | 1.21 | 8.26% | | Item | Current Period | Prior Period | Change from Prior Period to Current Period | | Net Profit After Deducting Non-recurring Gains and Losses | 17,744.31 CNY 10,000 | 42,198.08 CNY 10,000 | -57.95% | | EBITDA to Total Debt Ratio | 9.18% | 14.28% | -5.10% | | Interest Coverage Ratio | 6.78 | 10.90 | -37.80% | | Cash Interest Coverage Ratio | -15.24 | -14.37 | -6.05% | | EBITDA Interest Coverage Ratio | 9.98 | 13.74 | -27.37% | | Loan Repayment Rate | 100.00% | 100.00% | 0.00% | | Interest Payment Rate | 100.00% | 100.00% | 0.00% | Item 8. Financial Report This section comprises the company's unaudited financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity, along with detailed notes on accounting policies and financial items I. Audit Report The company's semi-annual financial report was unaudited - The company's semi-annual financial report was unaudited[111] II. Financial Statements This section includes the consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in equity, providing a comprehensive view of the company's financial position and performance at the end of the reporting period 1. Consolidated Balance Sheet As of June 30, 2025, the company's consolidated total assets were 13.003 billion CNY, with total current assets of 8.264 billion CNY and total current liabilities of 5.181 billion CNY Key Data from Consolidated Balance Sheet (June 30, 2025) | Item | Balance at Period-End (CNY) | Balance at Period-Beginning (CNY) | | :--- | :--- | :--- | | Total Current Assets | 8,264,439,618.38 | 10,115,347,495.91 | | Total Non-current Assets | 4,738,545,999.28 | 4,879,194,583.66 | | Total Assets | 13,002,985,617.66 | 14,994,542,079.57 | | Total Current Liabilities | 5,181,050,563.45 | 6,450,021,962.88 | | Total Non-current Liabilities | 698,667,346.08 | 1,490,190,386.72 | | Total Liabilities | 5,879,717,909.53 | 7,940,212,349.60 | | Total Equity Attributable to Parent Company Owners | 7,075,519,370.04 | 7,013,897,157.51 | | Minority Interests | 47,748,338.09 | 40,432,572.46 | | Total Equity | 7,123,267,708.13 | 7,054,329,729.97 | 2. Parent Company Balance Sheet As of June 30, 2025, the parent company's total assets were 13.151 billion CNY, with total current assets of 8.660 billion CNY and total current liabilities of 5.179 billion CNY Key Data from Parent Company Balance Sheet (June 30, 2025) | Item | Balance at Period-End (CNY) | Balance at Period-Beginning (CNY) | | :--- | :--- | :--- | | Total Current Assets | 8,659,767,098.56 | 10,545,242,370.99 | | Total Non-current Assets | 4,491,711,041.94 | 4,635,382,429.38 | | Total Assets | 13,151,478,140.50 | 15,180,624,800.37 | | Total Current Liabilities | 5,179,177,804.14 | 6,464,365,845.65 | | Total Non-current Liabilities | 601,133,342.72 | 1,397,156,321.55 | | Total Liabilities | 5,780,311,146.86 | 7,861,522,167.20 | | Total Equity | 7,371,166,993.64 | 7,319,102,633.17 | 3. Consolidated Income Statement For the first half of 2025, the company's consolidated total operating revenue was 4.593 billion CNY, a 19.24% year-on-year decrease, resulting in a net profit of 180 million CNY, down 57.69% year-on-year Key Data from Consolidated Income Statement (H1 2025 vs H1 2024) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Total Operating Revenue | 4,592,689,456.32 | 5,686,512,595.08 | | Total Operating Costs | 4,274,955,116.80 | 5,048,129,898.84 | | Operating Profit | 317,254,988.07 | 643,086,969.95 | | Total Profit | 312,650,522.00 | 643,872,814.96 | | Income Tax Expense | 132,447,495.49 | 218,008,941.62 | | Net Profit | 180,203,026.51 | 425,863,873.34 | | Net Profit Attributable to Parent Company Shareholders | 172,887,260.88 | 422,573,710.95 | | Minority Interest Income/Loss | 7,315,765.63 | 3,290,162.39 | | Basic Earnings Per Share | 0.2331 | 0.5697 | | Diluted Earnings Per Share | 0.2331 | 0.5697 | 4. Parent Company Income Statement For the first half of 2025, the parent company's operating revenue was 4.449 billion CNY, a 19.50% year-on-year decrease, resulting in a net profit of 163 million CNY, down 61.94% year-on-year Key Data from Parent Company Income Statement (H1 2025 vs H1 2024) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Operating Revenue | 4,448,773,719.68 | 5,526,153,364.82 | | Operating Cost | 2,928,190,590.63 | 3,509,488,375.17 | | Operating Profit | 299,640,289.20 | 646,335,793.23 | | Total Profit | 295,106,841.77 | 647,106,109.27 | | Income Tax Expense | 131,777,432.95 | 218,108,169.08 | | Net Profit | 163,329,408.82 | 428,997,940.19 | 5. Consolidated Cash Flow Statement For the first half of 2025, the company's net cash flow from operating activities was -951 million CNY, from investing activities -42 million CNY, and from financing activities -139 million CNY Key Data from Consolidated Cash Flow Statement (H1 2025 vs H1 2024) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -950,826,571.63 | -1,017,775,678.93 | | Net Cash Flow from Investing Activities | -41,781,001.55 | -31,510,210.15 | | Net Cash Flow from Financing Activities | -138,965,852.86 | -204,281,772.55 | | Net Increase in Cash and Cash Equivalents | -1,131,573,426.04 | -1,253,567,661.63 | | Cash and Cash Equivalents at Period-End | 5,812,332,413.94 | 6,010,093,624.67 | 6. Parent Company Cash Flow Statement For the first half of 2025, the parent company's net cash flow from operating activities was -1.013 billion CNY, from investing activities -29 million CNY, and from financing activities -137 million CNY Key Data from Parent Company Cash Flow Statement (H1 2025 vs H1 2024) | Item | H1 2025 (CNY) | H1 2024 (CNY) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | -1,012,662,567.13 | -1,065,295,995.21 | | Net Cash Flow from Investing Activities | -29,314,767.48 | -26,451,177.46 | | Net Cash Flow from Financing Activities | -136,609,774.34 | -201,569,584.37 | | Net Increase in Cash and Cash Equivalents | -1,178,587,108.95 | -1,293,316,757.04 | | Cash and Cash Equivalents at Period-End | 5,644,275,768.00 | 5,866,003,434.76 | 7. Consolidated Statement of Changes in Equity For the first half of 2025, total consolidated equity increased from 7.054 billion CNY at the beginning of the period to 7.123 billion CNY at the end, primarily driven by an increase in net profit attributable to parent company owners - Total consolidated equity at period-end was 7.123 billion CNY, compared to 7.054 billion CNY at period-beginning[131][133] - Total comprehensive income attributable to parent company owners for the current period was 172.887 million CNY[132] 8. Parent Company Statement of Changes in Equity For the first half of 2025, the parent company's total equity increased from 7.319 billion CNY at the beginning of the period to 7.371 billion CNY at the end, mainly due to an increase in net profit - Total parent company equity at period-end was 7.371 billion CNY, compared to 7.319 billion CNY at period-beginning[138][141] - Total comprehensive income for the current period was 163.329 million CNY[138] III. Company Basic Information This section outlines the company's establishment, registered capital of 741.767 million CNY, primary business activities, and the composition of its consolidated financial statement scope, including the deregistration of two subsidiaries with no material impact - The company's registered capital is 741.767 million CNY, with controlling shareholder Beijing Shunxin Holdings Group Co., Ltd. holding 38.36%[142] - Principal business scope includes liquor production and sales, meat product processing and sales, and breeding stock propagation[143] - A total of 15 subsidiaries were included in the scope of consolidation for the current period; two subsidiaries were deregistered during the reporting period, but this had no substantial impact on overall production, operations, and performance[144][145] - The financial statements were approved for issuance by the company's Board of Directors on August 28, 2025[146] IV. Basis of Preparation of Financial Statements The financial statements are prepared in accordance with Enterprise Accounting Standards, based on a going concern assumption, and utilize the accrual basis and historical cost principle, with some financial instruments measured at fair value - The financial statements are prepared in accordance with Enterprise Accounting Standards and comply with relevant regulations[147] - The company evaluated its ability to continue as a going concern and found no significant doubts[148] - Accounting is based on the accrual basis, measured at historical cost, with some financial instruments measured at fair value[149] V. Significant Accounting Policies and Estimates This section details the company's adherence to Enterprise Accounting Standards and outlines specific accounting policies and estimates for areas such as financial instruments, inventory, fixed assets, and revenue recognition - The company's financial statements comply with Enterprise Accounting Standards, accurately and completely reflecting its financial position[150] Materiality Standards | Item | Materiality Standard | | :--- | :--- | | Significant individual accounts receivable for which bad debt provisions are made | Individual period-end balance exceeding 10 million CNY | | Significant construction in progress | Individual investment and construction budget exceeding 100 million CNY | | Significant accounts payable with age over 1 year | Individual period-end balance of 20 million CNY | | Significant non-wholly owned subsidiaries | Revenue of non-wholly owned subsidiaries exceeding 1% of consolidated revenue | - Financial assets are classified into three categories: measured at amortized cost, measured at fair value through other comprehensive income, and measured at fair value through profit or loss[180][181][182] - Expected credit loss rates for accounts receivable and notes receivable: 5% for within 1 year, 10% for 1-2 years, 20% for 2-3 years, and 50% for over 3 years[225][228] - Inventory is valued at issuance using the weighted average method at month-end or specific identification method[236] - Depreciation of fixed assets uses the straight-line method, with depreciation periods of 20-40 years for buildings and structures, and 10-25 years for machinery and equipment[272] - Revenue recognition principle: Revenue is recognized when the customer obtains control of the related goods or services, at the transaction price allocated to that performance obligation[313] VI. Taxes This section details the company's main tax categories and rates, along with tax incentives for the parent company and certain subsidiaries related to agricultural activities and breeding Main Tax Categories and Rates | Tax Category | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax | Output tax calculated based on sales of goods and taxable services as stipulated by tax law, with the difference after deducting deductible input tax for the current period being the VAT payable | 3%, 5%, 6%, 9%, 13% | | Consumption Tax | Levied based on a composite of ad valorem and specific rates; the company's alcoholic products are subject to consumption tax based on the sales revenue rate at the production stage and 0.5 CNY per jin of sales volume | Grain-based Baijiu, Potato-based Baijiu 20%, Other Baijiu 10% | | Urban Maintenance and Construction Tax | Actually paid VAT, Consumption Tax | 1%, 5%, 7% | | Enterprise Income Tax | Taxable Income | 25% | - The parent company is exempt from enterprise income tax for breeding stock production and processing, agricultural technology development, and livestock and poultry breeding; income from planting, aquaculture, and primary processing of agricultural and forestry products is temporarily exempt from enterprise income tax[351] - Enterprise income tax for some subsidiaries (e.g., Dazhou Shunxin Pengcheng Food Co., Ltd.) is exempt[352] - The company and its subsidiaries' production and sales of live pigs and crops are considered sales of self-produced agricultural products and are exempt from VAT[353] VII. Notes to Consolidated Financial Statement Items This section provides detailed explanations for each item in the consolidated financial statements, including period-end balances, period-beginning balances, current period changes, and relevant notes - Monetary capital at period-end was 5.817 billion CNY, including 4.490 billion CNY in time deposits readily available for withdrawal[355] - Notes receivable at period-end was 342 million CNY, all of which were bank acceptance bills with no bad debt provisions made[356][360] - Accounts receivable at period-end was 29.372 million CNY, with bad debt provisions of 26.0394 million CNY[369] - Inventory book value at period-end was 1.474 billion CNY, including 793 million CNY in merchandise inventory and 65.04 million CNY in consumable biological assets[403] - Short-term borrowings at period-end were 3.338 billion CNY, including 1.891 billion CNY in guaranteed borrowings and 1.445 billion CNY in credit borrowings[464] - Contract liabilities at period-end were 385 million CNY, a significant decrease from 1.758 billion CNY at period-beginning, primarily due to contract completion and transfer of advance receipts to revenue[481][48] - Operating revenue was 4.593 billion CNY, and operating cost was 3.015 billion CNY[515] - Financial expenses for the current period were -12.4713 million CNY, compared to 36.9532 million CNY in the prior period, primarily due to decreased interest expenses and increased interest income[525] VIII. Changes in Consolidation Scope During the reporting period, the company deregistered two subsidiaries, Hanzhong Shunxin Hog Industry Alliance Service Co., Ltd. and Inner Mongolia Shunxin Agriculture Xiaodian Pig Breeding Co.