Recently, Heilongjiang Beidahuang Agriculture Co., Ltd. announced that the local tax authority has requested a “supplementary tax” of 14.10 billion yuan (RMB) from them, exceeding the company’s full-year profit in 2025. The news immediately raised concerns in the market, and on June 23, Beidahuang’s stock price hit the limit down, closing at 12.47 yuan per share, a decrease of 10.03%.
On the evening of June 22, Heilongjiang Beidahuang Agriculture Co., Ltd. announced that they received a “Tax Matters Notification” from the Harbin Tax Bureau of the State Administration of Taxation on June 18, 2026, requiring the company to pay overdue corporate income tax and fines for the period from 2021 to 2025, totaling approximately 14.10 billion yuan.
According to the notification, the company’s 16 agricultural branch companies were found to have received land lease fees from non-employee household farms, which should not have enjoyed preferential corporate income tax policies. They are required to pay approximately 10.24 billion yuan in income tax and around 3.86 billion yuan in fines.
Beidahuang’s financial report shows that the company’s attributable net profit to shareholders of listed companies in 2025 was 11.66 billion yuan, meaning that the total amount of this tax payment and fines has exceeded the company’s entire annual net profit last year.
In fact, this is not the first time Beidahuang has been asked to make supplementary tax payments for similar reasons. In September 2018, the company announced that they had received a notice from the local tax authorities to pay a total of 3.06 billion yuan in overdue corporate income tax and fines for 2016 and 2017. At that time, 9 billion yuan of the company’s bank account funds were also frozen. However, Beidahuang did not agree with the tax penalty, applied for administrative reconsideration, and public information did not show that the company paid the 3 billion yuan in taxes.
According to Beidahuang’s official website, the company was established as a joint-stock company initiated exclusively by Beidahuang Farming Group Corporation on March 29, 2002, and was listed on the Shanghai Stock Exchange. The latter is a large central enterprise mainly engaged in agriculture and agricultural product processing industry in Heilongjiang Beidahuang region, directly managed by the Ministry of Finance of the Communist Party of China.
According to rough statistics from financial investment reports, as of June 23, more than 70 A-share listed companies in China have issued announcements related to supplementary taxes, with a total amount exceeding 6.5 billion yuan, all surpassing the scale of the full year in 2025. The furthest year traced back to is 2019, covering industries such as medicine, energy, manufacturing, technology, and consumption. Beidahuang is currently the company with the highest amount of supplementary taxes.
Affected by the news, on June 23, the first trading day after the announcement disclosure, Beidahuang’s stock price opened at the limit down and eventually closed at the limit down price. As of the closing that day, Beidahuang’s stock was at 12.47 yuan per share, a decrease of 10.03%.