On the evening of October 20, Jiangxi Huangshanghuang Group Food Co., Ltd. (002695), known as the "first stock of braised food," released its third-quarter report for 2025. The report indicates that the company's third-quarter revenue reached 394 million yuan, reflecting a year-on-year increase of 0.62%. The parent net profit amounted to 24.11 million yuan, a year-on-year growth of 34.31%. For the first three quarters, revenue was 1.379 billion yuan, down 5.08% year-on-year, while the parent net profit was 101 million yuan, up 28.59% year-on-year.
At first glance, Jiangxi Huangshanghuang's double-digit net profit growth appears impressive. However, a closer examination of the financial report reveals an unusual phenomenon: despite the decline in revenue, net profit increased, largely driven by significant non-operating income contributions. The third-quarter report disclosed that for the first three quarters, the company recorded government subsidies of 14.213 million yuan, accounting for over 14% of net profit.
In the section on "Other Important Matters" of the third-quarter report, Jiangxi Huangshanghuang explicitly stated that it acquired 51% of Fujian Lixing Food Co., Ltd. for 495 million yuan in August 2025, subsequently including it in the consolidated financial statements in September. This acquisition directly contributed new profit sources for the third quarter and was a key factor in boosting overall net profit. It can be said that a significant portion of the nearly 30% increase in net profit was "acquired."
Specifically, the third-quarter report shows that several financial indicators experienced dramatic fluctuations, primarily attributed to the acquisition of Fujian Lixing Food Co., Ltd. As of September 30, 2025, accounts receivable reached 128 million yuan, soaring by 603.71% from the beginning of the year, mainly due to the consolidation of the newly acquired subsidiary Fujian Lixing into the financial statements. Additionally, prepaid expenses increased by 64.43%, and short-term borrowings rose from 0 to 91.79 million yuan. Jiangxi Huangshanghuang attributed all these changes to the consolidation of its new acquisition.
Particularly concerning is that the company's goodwill surged from 22.423 million yuan to 335 million yuan, indicating a remarkable increase. This substantial accumulation of goodwill raises concerns about potential impairment risks for future performance.
On the liabilities side, the situation is likewise worrying: other payables increased from 126 million yuan to 320 million yuan, a rise of 154.27%, mainly due to "the installment payments for equity acquisitions as per the agreement, resulting in increased payable amounts for equity transfer."
Whether this acquisition-driven growth can be sustained, and how the company integrates the newly acquired assets, will be the next challenge it faces.
Looking back at Jiangxi Huangshanghuang's financial reports over the past few years, the company has consistently faced challenges with sluggish growth in its main business, leading to year-on-year revenue declines. From 2021 to 2024, the company reported revenues of 2.339 billion yuan, 1.954 billion yuan, 1.921 billion yuan, and 1.739 billion yuan, with year-on-year declines of 4.01%, 16.46%, 1.7%, and 9.44%, respectively.
Despite its attempts to expand its business footprint through acquisitions, the core braised food product segment has experienced slow growth. In the first three quarters of 2025, the company's revenue decreased by 5.08% year-on-year to 1.379 billion yuan, continuing the trend of weak growth.
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