Yunnan Shennong Agricultural Industry Group (Shennong Group) saw a decline in both operating income and net profit in the third quarter of this year, with the net profit dropping by 79.21% year-on-year. Throughout the first three quarters of this year, the group’s operating income and net profit both experienced decreases.
According to the Quarterly Report for the third quarter of 2025 released by Shennong Group on the evening of October 27th, the group achieved an operating income of 1.126 billion yuan, a year-on-year decrease of 28.90%. The net profit attributable to the parent company was 74.0618 million yuan, down 79.21% year-on-year. After deducting non-recurring gains and losses, the net profit attributable to shareholders of the listed company was 34.9733 million yuan, a decrease of 90.23%. Earnings per share were 0.14 yuan, a decrease of 79.41%.
Looking at the overall picture for the first three quarters of this year, Shennong Group achieved a revenue of 3.923 billion yuan, a decrease of 3.79% compared to the same period last year. The net profit attributable to the parent company was 462 million yuan, down by 3.89%.
During the first three quarters of this year, the company sold a total of 2.1096 million live pigs, nearing the total for the previous year. However, due to the downturn in the Chinese pig cycle, they found themselves in a situation of “selling more but earning less.” According to reports from October 27th, Shennong Group’s pig sales prices continued to decline in the third quarter, with prices in September even hitting a yearly low of 12.82 yuan per kilogram, which became a major factor in the decline of the company’s third-quarter net profit.
Overall, since the Chinese New Year this year, pig prices in China have been operating at low levels. Since mid-August, the decline in pig prices has accelerated, continuing to fall in September. In October, pig prices continued to decline, with reports indicating that from October 13th to 15th, prices fell below 11 yuan per kilogram, reaching 10.92 yuan, 10.89 yuan, and 10.95 yuan per kilogram. The average price for that week was 11 yuan per kilogram.
Jiang Han, a senior researcher at Pangu Think Tank, told the Beijing Business Daily that the current pig prices have fallen below the cost line of most breeding entities, which is around 13 to 14 yuan per kilogram.
Due to the imbalance between supply and demand in the pork market and the situation where supply exceeds demand, it is expected that there will be limited room for a rebound in pig prices. With pig prices continuously declining, various stages of breeding profits are generally entering a state of losses, as noted by Zhejiang Dadi Futures Brokerage Co., Ltd.
Jiang Han believes that the current prices have reached a survival bottom line, and some small and medium-sized breeders may be forced to exit the market.
Public records show that Yunnan Shennong Agricultural Industry Group was founded in 1994. It is a large agricultural and animal husbandry technology group that integrates feed production, agricultural product trading, fine breed pig breeding, live pig farming, animal health, pig slaughtering and processing, and pollution-free pig meat chain operations.