--- title: "SuKen Agriculture's performance has declined for three consecutive quarters: Investors question the \"breakthrough strategy\" at the earnings meeting | Direct coverage of the earnings meeting" type: "News" locale: "en" url: "https://longbridge.com/en/news/288026302.md" description: "SuKen Agriculture has experienced a decline in both revenue and net profit for three consecutive years, with operating revenue of 10.071 billion yuan in 2025, a year-on-year decrease of 7.75%; net profit of 548 million yuan, a year-on-year decrease of 24.96%. At the performance meeting, investors focused on the company's response measures and future strategy. Chairman Deng Guoxin stated that due to multiple factors, the company has formulated response measures of \"cost reduction, efficiency enhancement, volume expansion, and strong returns\" to strive to reverse the downturn" datetime: "2026-05-29T07:06:16.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288026302.md) - [en](https://longbridge.com/en/news/288026302.md) - [zh-HK](https://longbridge.com/zh-HK/news/288026302.md) generator: "portal-rs" --- # SuKen Agriculture's performance has declined for three consecutive quarters: Investors question the "breakthrough strategy" at the earnings meeting | Direct coverage of the earnings meeting **Financial Associated Press, May 29 (Reporter Liu Jian)** Due to multiple factors such as the continued low volatility of agricultural product prices, SuKen Agriculture (601952.SH) has experienced a "double decline" in revenue and net profit for three consecutive years. At today's performance briefing, how the company plans to reverse this trend and reshape its growth momentum has become the focus of investors' attention. Financial data shows that SuKen Agriculture achieved operating revenue of 10.071 billion yuan in 2025, a year-on-year decrease of 7.75%; the net profit attributable to shareholders was 548 million yuan, a year-on-year decrease of 24.96%. Looking back at its historical data, in 2023 and 2024, the company's operating revenue was 12.17 billion yuan and 10.92 billion yuan, with year-on-year decreases of 4.39% and 10.28%, respectively; the net profit attributable to shareholders was 816 million yuan and 730 million yuan, with year-on-year decreases of 1.2% and 10.56%, respectively. Thus, the company's revenue and net profit attributable to shareholders have declined for three consecutive years from 2023 to 2025, with the decline in net profit showing an expanding trend. Entering the first quarter of 2026, the company's operational pressure has not eased. During the reporting period, SuKen Agriculture achieved operating revenue of 2.09 billion yuan, a year-on-year decrease of 2.01%; the net profit attributable to shareholders was 49.13 million yuan, a year-on-year decrease of 40.40%. Faced with the continued decline in performance, investors' anxiety was directly reflected in the questions raised at the performance meeting: "Does the company have specific countermeasures?" "What does the company believe is the core shortcoming putting pressure on its performance?" "How will the overall strategy be adjusted in the future to narrow the gap with leading companies in the industry?" In response, SuKen Agriculture's Chairman Deng Guoxin explained at the performance meeting that the company's revenue and net profit attributable to shareholders have experienced a phase of decline since 2022 due to multiple factors, including the high price retreat of rice and wheat in the market, rigid increases in planting costs, reduced yields due to extreme weather, and pressure on the gross profit margins of certain agricultural products. He also stated that in response to this situation, the company's board of directors and management have formulated and are implementing a series of comprehensive countermeasures focused on "cost reduction, efficiency enhancement, volume expansion, and strong returns." Regarding the more than 40% year-on-year decline in net profit for the first quarter of 2026, Deng Guoxin further explained that this was mainly due to the continued low volatility of agricultural product prices and the impact of extreme weather, leading to a decrease in the yield of major crops and an increase in unit costs, thereby narrowing the gross profit margin. The company is addressing these challenges by supporting its foundation through "cost reduction in planting and stable growth in seed industry," optimizing variety structure, and strengthening field management. In the future, the company will focus on deepening the synergy across the entire industry chain, strengthening technological innovation, and expanding agricultural social services to further enhance its market competitiveness. In addition to the decline in performance, fluctuations in certain financial indicators have also drawn investors' attention. Some investors pointed out: "In the first quarter of 2026, the company's net cash flow from operating activities was only 104 million yuan, a year-on-year plummet of 84.90%." The company's Chief Financial Officer Yuan Xiaobin responded that the main reason for the decline in operating cash flow was the increase in cash inflow from the sale of inventory wheat during the same period last year, while the rise in agricultural material prices since the beginning of the year and the increase in external procurement of fertilizers were also contributing factors. Both of these factors are seasonal differences caused by agricultural production and sales, and the advance procurement of fertilizers to lock in prices is a reasonable means for the company to withstand fluctuations in fertilizer prices, which has not significantly impacted the company's cash flow The fundamentals of the company's production and operation are not affected. It is worth noting that the progress of the company's seed business was also mentioned at this performance meeting. According to Deng Guoxin, in 2022, the company established Jiangsu Seed Industry Group Co., Ltd. through equity and monetary contributions, aiming to integrate resources, enhance competitiveness, and build a leading enterprise in breeding, propagation, and promotion. "Recently, the drought-resistant corn transgenic variety jointly developed by Jiangsu Seed Industry Group and the Institute of Biotechnology of the Chinese Academy of Agricultural Sciences officially obtained the Agricultural Genetically Modified Organism Safety Certificate (Production Application) from the Ministry of Agriculture and Rural Affairs." (Reporter Liu Jian, Financial Associated Press) ### Related Stocks - [601952.CN](https://longbridge.com/en/quote/601952.CN.md) ## Related News & Research - [Champagne growers race to preserve quality in record-early harvest](https://longbridge.com/en/news/296443031.md) - [Seeka Delivers Record Interim Profit, Lifts Guidance and Plans Grower Share Scheme](https://longbridge.com/en/news/296403040.md) - [Goodwell launches Growth Capital Fund targeting sustainable agriculture across Africa](https://longbridge.com/en/news/296471477.md) - [09:41 ETMosaic Biosciences Launches New Product to Accelerate Crop Residue Breakdown and Improve Spring Field Readiness](https://longbridge.com/en/news/296115845.md) - [Ege Gubre Sanayii A.S. Releases Mid-2026 Operating Report and Confirms Governance Structure](https://longbridge.com/en/news/296431161.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**