SHENNONG SEED(SZ:300189) Xin Lang Cai Jing·2025-10-28 10:05Core Viewpoint - Shennong Agricultural's Q3 2025 report shows significant growth in revenue and net profit, indicating strong operational performance despite a slight decline in gross margin [1][2]. Financial Performance - The company's revenue for the first three quarters reached 159 million yuan, a year-on-year increase of 29.36% [1]. - Net profit attributable to shareholders was 5.6551 million yuan, up 125.99% year-on-year [1]. - The net profit after deducting non-recurring items was 8.0228 million yuan, reflecting a 158.97% increase year-on-year [1]. - Basic earnings per share stood at 0.01 yuan [1]. - Gross margin for the first three quarters was 43.45%, down 2.53 percentage points year-on-year, while net margin improved to 11.85%, an increase of 21.63 percentage points [1]. Quarterly Insights - In Q3 2025, the gross margin was 59.58%, a decrease of 2.62 percentage points year-on-year but an increase of 32.62% quarter-on-quarter [1]. - The net margin for Q3 was 43.52%, up 34.00% year-on-year and 70.10 percentage points quarter-on-quarter [1]. Expense Management - Total expenses for the quarter were 52.1197 million yuan, a decrease of 12.5676 million yuan compared to the same period last year [2]. - The expense ratio was 32.84%, down 19.89 percentage points year-on-year [2]. - Sales expenses decreased by 36.13%, and management expenses fell by 23.83%, while R&D expenses increased by 13.20% [2]. Shareholder Dynamics - As of the end of Q3 2025, the total number of shareholders was 75,500, a decrease of 7,321 from the previous half-year, representing an 8.84% decline [2]. - The average market value per shareholder increased from 54,600 yuan to 59,200 yuan, reflecting an 8.45% rise [2]. Company Overview - Shennong Agricultural, established on December 29, 2000, and listed on March 16, 2011, is based in Haikou, Hainan Province [2]. - The company specializes in the breeding, production, and sale of hybrid rice seeds, along with other agricultural products and services [2]. - Revenue composition includes hybrid rice seeds (40.24%), other seeds (28.71%), agricultural chemicals (19.32%), corn seeds (4.52%), aquatic products (3.34%), and others [2]. Industry Context - Shennong Agricultural operates within the agricultural sector, specifically in the seed industry, and is associated with concepts such as seed industry, low prices, rural revitalization, and land transfer [3].