SHUNXIN AGRICULTURE(000860) Sou Hu Cai Jing·2025-04-25 03:19Core Viewpoint - Shunxin Agriculture reported a significant turnaround in profitability for 2024, achieving a net profit of 231 million yuan despite a decline in overall revenue, primarily driven by strong performance in the liquor segment while the pork business faced substantial challenges [1][7]. Group 1: Financial Performance - The company achieved total revenue of 9.126 billion yuan in 2024, a year-on-year decrease of 13.85% [1]. - The net profit attributable to shareholders was 231 million yuan, marking a substantial increase of 178.20% year-on-year, indicating a successful turnaround [1]. - The non-recurring net profit was 246 million yuan, reflecting a growth of 143.08% compared to the previous year [1]. - The company managed to reduce sales and management expenses by a total of 433 million yuan, contributing significantly to the profit increase [6]. Group 2: Liquor Business - The liquor segment generated revenue of 7.041 billion yuan in 2024, representing a year-on-year growth of 3.19% [4]. - The Niulanshan brand showed strong performance, with sales of classic Erguotou and traditional Erguotou series increasing by 32% and 37% respectively [4]. - The Pearl River Delta and Xinjiang markets became regional models, with sales growth of 50% and 23% respectively [4]. - However, the high-end product Niulanshan Jinbiao Chenniang saw a sales volume decline of 19.8%, with inventory increasing by 254.6%, indicating challenges in the high-end market acceptance [4]. - The capacity utilization rate for the liquor business was only 45.8%, significantly lower than 78.3% in 2021, reflecting insufficient market demand [4]. Group 3: Pork Business - The pork segment reported revenue of 1.891 billion yuan, a significant decline of 27.21% year-on-year [5]. - The slaughtering business accounted for 1.689 billion yuan, while breeding business revenue was 202 million yuan [5]. - The decline in pork business performance was attributed to market supply-demand dynamics and price fluctuations [5]. - The company implemented measures such as optimizing production schedules and increasing the proportion of fresh products to improve profitability [6]. - Despite these efforts, the overall performance of the pork business remained poor, particularly in the slaughtering segment [6]. Group 4: Future Challenges - Although the company achieved profitability in 2024, it faces ongoing challenges, including the slow progress of high-end liquor transformation and a tough market environment for pork [7]. - The decline in contract liabilities, which fell by 20% to 1.76 billion yuan, indicates weakening market demand and poses future revenue growth pressures [6][7].