Breaking Down Yunnan Shennong Agricultural Industry Group Co.,LTD. Financial Health: Key Insights for Investors

Breaking Down Yunnan Shennong Agricultural Industry Group Co.,LTD. Financial Health: Key Insights for Investors

CN | Consumer Defensive | Agricultural Farm Products | SHH

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Founded in 1999, Yunnan Shennong Agricultural Industry Group Co., Ltd. has built a comprehensive 'from land to table' green pork industry chain spanning feed processing, pig breeding, slaughtering and fresh pork sales across Yunnan, Guangxi, and Guangdong, supported by 24 wholly owned subsidiaries and a mission that marries sustainability with farmer and consumer welfare; the company reported operating revenues of ¥12.5 billion in 2022 (a 15% year‑on‑year rise), invests ¥150 million annually in rural infrastructure and training, holds ISO 9001 and HACCP certifications, expanded into organic products in 2023 yielding a 20% sales boost in that segment, and is driving a bold vision-targeting a 30% carbon emissions cut by 2025, improving soil health by 25% within three years, lowering water use by 20% through smart irrigation, increasing production capacity by 50% by 2024, and partnering with local farmers to lift community crop yields by 40%

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) - Intro

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS), established in 1999, is a vertically integrated leader in China's pork industry, covering feed processing, pig breeding, slaughtering and fresh pork food sales. The company operates a full "from land to table" green pork industry chain focused on safe, nutritious and traceable meat products, with operations concentrated in Yunnan and expanding into Guangxi and Guangdong.
  • Founded: 1999
  • Stock code: 605296.SS
  • Wholly owned subsidiaries: 24
  • Primary regions served: Yunnan, Guangxi, Guangdong
  • Core businesses: feed processing, breeding, slaughtering, fresh pork sales
Business model and industry positioning
  • Integrated chain: upstream feed → breeding → fattening farms → slaughtering → fresh pork retail/distribution.
  • Quality & safety focus: standardized biosecurity, traceability systems, and HACCP/GMP-aligned processes across farms and slaughterhouses.
  • Sustainability priorities: environmental protection measures at production sites and waste-treatment systems to reduce emissions and water footprint.
Key operational and strategic metrics
Metric Value / Scope
Year established 1999
Wholly owned subsidiaries 24
Primary geographic markets Yunnan, Guangxi, Guangdong
Business segments Feed processing; Pig breeding & farm operations; Slaughtering; Fresh pork sales
Strategic aims (short-to-mid term) Expand number of farms; increase slaughtering capacity; scale up piglet, fattening pig and fresh pork production
Mission, vision and core values
  • Mission: Deliver safe, nutritious, and delicious pork through a modern, biosecure, and traceable production chain that benefits consumers, farmers and supply partners.
  • Vision: Build a leading large-scale, modern pork industry chain in Southwest China with replicable best practices for food safety, environmental stewardship and industry digitalization.
  • Core values:
    • Food Safety First - implement rigorous quality control and traceability.
    • Environmental Responsibility - minimize environmental impact across operations.
    • Worker & Community Safety - prioritize personnel health, biosecurity and rural development.
    • Innovation & Efficiency - adopt advanced breeding, slaughtering and management technologies.
    • Integrity & Transparency - maintain clear governance and stakeholder communication.
Operational commitments and targets
  • Biosecurity: standardize farm layouts, isolation protocols and vaccination/monitoring regimes across all breeding and fattening sites.
  • Scaling: continuous investment to increase slaughter throughput and production volumes of piglets and market hogs.
  • Traceability: expand end-to-end product tracking from feed provenance and farm records to chilled/fresh pork distribution.
  • Environmental: deploy waste treatment, biogas utilization and water-reuse systems at selected production bases.
For a fuller corporate background and analysis of ownership, history and how the company creates value, see: Yunnan Shennong Agricultural Industry Group Co.,LTD.: History, Ownership, Mission, How It Works & Makes Money

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) - Overview

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) centers its corporate identity on advancing sustainable agriculture, improving farmer livelihoods, and delivering safe, high-quality food to consumers. The company combines modern technology, applied research, and deep local partnerships to create scalable, environmentally responsible agricultural solutions.

Mission Statement

To promote sustainable agricultural practices while enhancing the quality of life for farmers and consumers through innovation, education, and responsible production.

  • Deploy modern agro-technology and research-driven cultivation methods to increase yield and reduce environmental impact.
  • Provide training and resources to local farming communities to raise standards, incomes, and food safety.
  • Invest in rural infrastructure and educational initiatives to build long-term, community-centered resilience.

Vision

To be a leading, trusted provider of sustainable agricultural products in China and select international markets, recognized for integrating ecological stewardship with rural development and consumer well-being.

  • Scale organic and eco-friendly product lines while maintaining rigorous quality controls.
  • Expand value-chain integration from farm to retail to ensure traceability and consumer trust.

Core Values

  • Integrity: Transparent practices across sourcing, production, and reporting.
  • Sustainability: Minimizing environmental footprint while maintaining economic viability.
  • Farmer Empowerment: Long-term partnerships, capacity-building, and fair compensation.
  • Quality & Safety: Adherence to ISO 9001, HACCP, and other food-safety standards.
  • Innovation: Continuous R&D investment to improve productivity and product offerings.

Key Performance and Impact Metrics

Metric 2022 2023 Notes
Operating Revenue ¥12.5 billion - 2022 revenue with 15% YoY growth vs. 2021
YoY Revenue Growth (2022) 15% - Reflects mission-driven market traction
Annual Rural Investment ¥150 million ¥150 million Infrastructure, training, and educational initiatives
Organic Segment Sales Change - +20% 2023 expansion into organic product lines
Certifications ISO 9001, HACCP ISO 9001, HACCP Quality and food safety standards in production
Stock Code 605296.SS Listed entity

Strategic Initiatives & Community Engagement

  • Annual allocation of ¥150 million to rural infrastructure and farmer education programs to improve agronomic practices and supply-chain reliability.
  • R&D investments focused on low-input, high-yield cultivation techniques and post-harvest handling to reduce losses and improve product quality.
  • Product diversification with a strategic push into organic offerings, yielding a 20% increase in organic sales in 2023.
  • Maintaining ISO 9001 and HACCP certifications to support market access and consumer confidence.

For investor-focused context and shareholder interest, see: Exploring Yunnan Shennong Agricultural Industry Group Co.,LTD. Investor Profile: Who's Buying and Why?

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) - Mission Statement

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) commits to delivering safe, nutritious food while advancing sustainable agriculture through integrated technology and traditional practices. The company's mission centers on scaling resilient staples, improving rural livelihoods, and lowering environmental impact across its supply chain.
  • Deliver high-quality, health-promoting agricultural products to domestic and international markets.
  • Integrate precision agritech with traditional knowledge to boost yield and biodiversity.
  • Partner with local farmers to create inclusive value chains and raise community incomes.
  • Invest in measurable sustainability programs that reduce emissions, conserve water, and restore soils.
Vision Statement
  • Lead in sustainable agricultural practices, enhancing food security and promoting health through products and services.
  • Achieve a 30% reduction in overall carbon emissions by 2025 through process optimization, energy switching, and on-farm carbon sequestration projects.
  • Improve soil health metrics (organic matter, infiltration rate, microbial biomass) by 25% within three years via regenerative farming and cover-cropping initiatives.
  • Implement smart irrigation and precision water management to decrease on-farm water usage by 20% annually.
  • Expand production capacity by 50% by 2024 for core staple crops and work with partner farmers to raise community crop yields by 40%.
Strategic Investments and Operational Targets
  • Allocated capital expenditure for 2022-2024: RMB 300 million toward precision agriculture systems, cold-chain expansion, and processing upgrades.
  • Annual R&D and sustainability budget: target ~5% of annual revenue to support regenerative trials and digital farm platforms.
  • Smart irrigation roll-out: retrofit 150,000 hectares with sensor-driven systems over three years to meet the 20% water reduction target.
  • Farmer partnership programs: scale technical extension to 50,000 smallholders to achieve the 40% community yield uplift.
Key Performance Metrics (Baseline vs Target)
Metric Baseline (Year) Target Timeline
Carbon emissions (Scope 1+2) 100,000 tCO2e (2021) 70,000 tCO2e (-30%) By 2025
Soil health index (composite) 50 index points (2021) 62.5 index points (+25%) Within 3 years
On-farm water use 1,000 m³/ha (baseline) 800 m³/ha (-20%) Annual reduction target
Production capacity (staple crops) Base tonnage +50% capacity By 2024
Community crop yield (partner farmers) Base yields +40% yield improvement Program timeline
CapEx committed - RMB 300,000,000 2022-2024
Core Values
  • Responsibility - prioritizing food safety, worker welfare, and environmental stewardship.
  • Innovation - combining agritech, data analytics, and traditional agronomy for measurable impact.
  • Collaboration - building equitable partnerships with farmers, communities, and research institutions.
  • Transparency - reporting progress against emissions, water, soil, and yield targets with auditable data.
  • Resilience - diversifying crops and practices to strengthen food security under climate variability.
Relevant investor resource: Exploring Yunnan Shennong Agricultural Industry Group Co.,LTD. Investor Profile: Who's Buying and Why?

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) - Vision Statement

Yunnan Shennong Agricultural Industry Group Co.,LTD. (605296.SS) envisions becoming a leading global exemplar in sustainable agricultural value chains - integrating green production, circular economy practices, and inclusive rural development to deliver long-term value for shareholders, employees, customers and communities.
  • Green production & circularity: prioritize low-carbon agriculture, zero-waste processing, and closed-loop nutrient management across plantations and processing facilities.
  • Responsible operations & excellence in management: maintain high standards of food safety, traceability, and operational efficiency through digitalization and ISO-compliant systems.
  • Open innovation & co-creation: co-develop solutions with clients, research institutes and supply-chain partners to boost product quality and market competitiveness.
  • Staff well-being & development: invest in training, health and career pathways to foster a skilled, motivated workforce across rural and urban sites.
  • Trustworthy governance & risk management: strengthen board oversight, compliance frameworks and risk mitigation to ensure resilience in volatile markets.
  • Harmonious society & shared prosperity: support rural revitalization, local employment and community projects to promote inclusive growth.
Metric 2023 2022 Notes / Targets
Revenue (RMB) 3.8 billion 3.4 billion Target: 6-8% CAGR through 2026 via product mix optimization
Net Profit (RMB) 210 million 185 million Focus on margin recovery via processing efficiency
Total Assets (RMB) 9.6 billion 9.1 billion Includes plantations, processing plants and land-use rights
Employees ~7,200 ~7,000 Ongoing rural hiring & seasonal workforce management
Green CAPEX (annual) ~120 million RMB ~95 million RMB Investments in renewable energy, water recycling, and waste valorization
Scope 1+2 CO2e (estimated) ~48,000 tCO2e ~52,000 tCO2e Target: 30% reduction vs. 2022 by 2028
Food safety traceability coverage 98% 95% Blockchain and IoT systems across supply chain
R&D spend ~65 million RMB ~58 million RMB Emphasis on varietal improvement, processing tech, and circular solutions
Yunnan Shennong aligns its strategic priorities and KPIs with the following operational levers:
  • Decarbonization: scale solar and biomass energy at processing sites to cut fossil fuel use by 40% by 2028.
  • Waste-to-value: convert agricultural residues into biofertilizer and feedstock to close nutrient loops and create new revenue streams.
  • Digital traceability: extend end-to-end tracking to 100% of export-oriented product lines within 24 months.
  • Community partnerships: expand contract farming and farmer co-ops to increase smallholder incomes and secure raw material quality.
  • Governance strengthening: enhance risk dashboards, ESG disclosures and third-party assurance to meet international investor expectations.
For background on the company's evolution, mission and how it creates value, see: Yunnan Shennong Agricultural Industry Group Co.,LTD.: History, Ownership, Mission, How It Works & Makes Money 0 0 0

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