Shennong Group(SH:605296) Xin Lang Cai Jing·2025-10-27 16:05Core Viewpoint - The swine industry is experiencing a downturn, leading to significant pressure on the performance of listed pig farming companies, including Shennong Group, which reported a nearly 80% decline in net profit for Q3 2023 [1][2]. Financial Performance - For the first three quarters of 2023, Shennong Group achieved revenue of 3.923 billion yuan, a year-on-year decrease of 3.79%, and a net profit attributable to shareholders of 462 million yuan, down 3.89% [1]. - In Q3 2023, the company reported revenue of 1.126 billion yuan, a year-on-year decline of 28.90%, with a net profit of 74.06 million yuan, reflecting a 79.21% decrease [1]. Production and Sales - Shennong Group has been expanding its production capacity since its listing, with pig output increasing from 411,000 heads in 2020 to 1.521 million heads in 2023, and projected to reach 2.2715 million heads in 2024 [1][2]. - In the first three quarters of 2023, the company sold 2.1096 million pigs, nearing the total sales for the entire previous year [2]. Market Conditions - The company faced a challenging market environment, with pig sales prices declining in Q3, hitting a year-low of 12.82 yuan/kg in September, which significantly impacted net profit [2]. - Despite the adverse market conditions, Shennong Group maintained a low debt ratio of 27.07%, the lowest among listed pig farming companies, and had a complete cost of 12.5 yuan/kg in September, placing it in the top tier of the industry [2]. Strategic Decisions - On July 29, 2023, the company announced the termination of its plan to issue A-shares to specific investors for 2024, retracting its application [3]. - The previous issuance plan aimed to raise a total of 290 million yuan for various projects, including the construction of a breeding base and biosecurity upgrades [3].