Sunner(SZ:002299) Shang Hai Zheng Quan Bao·2025-08-17 18:01Core Viewpoint - The company, Shennong Development, reported a significant increase in net profit for the first half of 2025, driven by strategic market expansion and cost control measures, despite challenges in the white feather chicken industry [2][3]. Financial Performance - In the first half of 2025, Shennong Development achieved revenue of 8.856 billion yuan, a year-on-year increase of 0.22% [2]. - The net profit attributable to shareholders reached 910 million yuan, marking a year-on-year growth of 791.93% [2]. - The net profit excluding non-recurring items was 376 million yuan, up 305.44% year-on-year [2]. Market Strategy - The company implemented a full-channel strategy, resulting in over 30% growth in the C-end retail channel, with rapid growth in export and catering channels as well [3]. - C-end business is a key focus for the company, with plans for sustained high growth over the next 3 to 5 years through market expansion and increased outlet numbers [3]. Strategic Transformation - In April 2025, the company changed its industry classification from "A03 Animal Husbandry" to "CA13 Agricultural and Sideline Food Processing," reflecting its strategic shift towards high-value food manufacturing [3]. - The company reported a 2.50% increase in chicken sales and a 13.21% increase in deep-processed meat product sales compared to the first half of 2024 [3]. Cost Management - The company achieved over a 10% reduction in comprehensive meat production costs compared to the same period last year, attributed to improved performance of its proprietary breed "901+" and enhanced production efficiency [4]. - The successful development of the "Shenze 901plus" breed has allowed the company to lower feed-to-meat ratios while maintaining performance and disease control [4]. Acquisition Impact - The completion of the acquisition of Anhui Taiyanggu Food Technology Group contributed significantly to the company's net profit, adding 85 million yuan to the results for the first half of 2025 [4]. - The company plans to leverage its self-controlled breeding and full industry chain layout to enhance the operational efficiency and profitability of Taiyanggu post-acquisition [4].