Yunnan Shennong Agricultural Industry Group Co Ltd
31.48+5.4%1Y · CNY
Yunnan Shennong Agricultural Industry Group Co., Ltd. operates a livestock business in China and internationally through its subsidiaries. It reports in four segments: Feed Processing, Livestock Breeding, Slaughtering and Food Processing, and Other. Its products include feeds, commercial pigs and piglets, fresh pork, processed foods such as crispy pork, luncheon meat and sausages, and pig by-products including pig heads and offal. The company is also involved in livestock and poultry farming, non-ferrous metal mining and beneficiation, food trade, and crop cultivation. Founded in 1999, it is headquartered in Kunming, China.
Tiankang Bio Terminates Hog Farming Fundraising Project; Multiple Pig Producers Cut Capacity This Year
Tiankang Bio plans to terminate the project for a 300,000-piglet breeding and 200,000-hog fattening base, which was part of its non-public share issuance fundraising investment projects, and will permanently use the remaining raised funds and interest of 324 million yuan to supplement working capital. The company said that due to persistently low hog prices and widespread industry losses, continuing the project would be difficult to achieve expectations. To implement the Comprehensive Regulation Plan for Hog Production Capacity in 2026 and improve capital efficiency, it decided to terminate the project. In the first half of this year, Tiankang Bio marketed 1.8484 million hogs, up 20.95 percent year on year, but the average hog selling price fell 42.33 percent year on year. The company achieved operating revenue of 8.325 billion yuan, down 5.89 percent year on year, and net profit attributable to shareholders of the listed company was negative 441 million yuan, swinging from profit to loss year on year. The company plans to market 4.75 million hogs this year, including 3.15 million from Tiankang and 1.6 million from Qiangdu Animal Husbandry. Notably, Tiankang Bio is not the only company adjusting capacity. This year, several listed pig producers, including Shennong Group, Xinwufeng, and ST Longda, have announced suspension or termination of hog farming projects. Data show that at the end of the second quarter, the national breeding sow herd was 37.8 million head, down 6.5 percent year on year and down 3.18 percent from the previous quarter, leaving only a 300,000-head gap from the normal stock target of 37.5 million head set by the Ministry of Agriculture and Rural Affairs.
600975.CG · Supply · Negative Tiankang Bio terminates hog farming project due to low prices and industry losses, reflecting oversupply in the hog market.
002726.CS · Supply · Neutral Named (ST Longda) as one of the listed pig producers that announced suspension or termination of hog farming projects this year.
605296.CG · Supply · Neutral Named as one of the listed pig producers that announced suspension or termination of hog farming projects this year.
Shennong Group reports net loss of 809 million yuan in 2026 interim results
Shennong Group released its 2026 interim report, with net profit attributable to the parent company swinging from profit to a loss of 809 million yuan, a decrease of 1.196 billion yuan compared with the same period last year, down 308.74 percent year on year. Total operating revenue was 2.489 billion yuan, down 11.02 percent year on year. Net cash flow from operating activities was negative 375 million yuan, down 167.35 percent year on year. The latest gross margin was 0.89 percent, down 21.00 percentage points from the same period last year. Diluted earnings per share were negative 1.56 yuan, down 308.00 percent year on year.
Hog Prices Remain Low, Multiple Listed Pig Companies Plan to Suspend New Farm Construction Projects
Hog prices continue to run at low levels, and multiple listed pig companies plan to suspend new farm construction projects. Shennong Group announced it intends to suspend construction of the Longmen pig farm project of Guangxi Daxin Shennong Agriculture Company Limited, which originally planned an investment of 120 million yuan, aimed at implementing hog production capacity control targets. Earlier, New Wellful terminated the construction project of a 2,400-head sire line pig farm in Yangjiadu Village, Huitong County, by Hunan Tianxin Breeding Company Limited in May. ST Longda announced on July 22 the termination of two hog breeding investment projects, scaling back capacity expansion and shifting focus to safeguarding cash flow and improving quality and efficiency at already operational pig farms.
002726.CS · Supply · Negative ST Longda terminated two hog breeding projects to preserve cash flow and focus on existing farms, reflecting industry downturn.
600975.CG · Supply · Negative New Wellful terminated a pig farm construction project due to low hog prices, indicating capacity reduction and weak industry conditions.
605296.CG · Supply · Negative Shennong Group suspended a pig farm project to control capacity amid persistently low hog prices.
LEANHOG · Supply · Negative Low hog prices and capacity reduction plans by major producers signal continued weak demand/supply imbalance, pressuring futures.
Shennong Group Suspends Longmen Pig Farm Project in Response to Hog Production Capacity Controls
Shennong Group announced the suspension of the Longmen pig farm project, which was designed to produce 180,000 high-quality piglets annually, in order to implement hog production capacity control targets. The total investment for the project was 120 million yuan, and it was approved by the board of directors in June 2025. The company stated that the suspension is a prudent decision made in consideration of regulatory policies, market conditions, and its own business strategy, and will not adversely affect operations. Shennong Group has seen rapid capacity growth in recent years, with slaughter volumes rising from 652,700 head in 2021 to 3,074,200 head in 2025. However, the average selling price of commercial hogs in the first half of the year was about 9.9 yuan per kilogram, a year-on-year decline of approximately 32 percent, leading to an estimated net loss attributable to shareholders of between 720 million and 880 million yuan. Previously, New Wufeng and ST Longda also terminated some pig farm construction projects. The national sow herd inventory fell to 37.8 million head at the end of the second quarter, just 300,000 head above the normal retention target of 37.5 million head.
605296.CG · Regulation · Negative Shennong Group suspends Longmen pig farm project due to hog production capacity controls, and faces losses from falling hog prices.
600975.CG · Regulation · Negative Industry-wide hog production capacity controls and sow herd reduction signal regulatory tightening, pressuring sector profitability.
Shennong Group expects a loss of 720 million to 880 million yuan in the first half of 2026
Shennong Group disclosed its performance forecast, expecting a net loss attributable to the parent company of 720 million to 880 million yuan in the first half of 2026, compared with a profit of 388 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 730 million to 890 million yuan, compared with a profit of 398 million yuan in the same period last year. The company stated that during the reporting period, the average selling price of commercial pigs was about 9.90 yuan per kilogram, a decrease of about 32% compared with the same period last year. The significant year-on-year decline in pig sales prices led to a loss in the farming business. In addition, the company made impairment provisions for some inventories based on the principle of prudence.
Shennong Group's June commercial hog average selling price was 9.06 yuan per kilogram, down 0.66% month-on-month
Shennong Group announced that in June 2026, the company sold 280,300 commercial hogs, up 31.53% year-on-year. Revenue from commercial hog sales was 324 million yuan, down 15.18% year-on-year. The average selling price of commercial hogs was 9.06 yuan per kilogram, down 0.66% month-on-month.
China