en.Wedoany.com Reported - On June 30, China's Three Squirrels announced that its wholly-owned subsidiary, Three Squirrels (Wuhu) Nut Intelligent Manufacturing Co., Ltd., received government subsidy funds of 21.4036 million yuan related to income, accounting for 13.78% of the absolute value of the company's net profit attributable to shareholders of the listed company in the most recent fiscal year as audited. The subsidy has been actually received and will be accounted for in accordance with the enterprise accounting standards. The specific impact amount is subject to the annual audit results.
Three Squirrels (Wuhu) Nut Intelligent Manufacturing Co., Ltd. is the nut manufacturing entity under Three Squirrels, responsible for the production, processing, and delivery of nut products. The subsidy funds allocated to this entity point to the company's manufacturing investments in food processing, production line operations, and supply chain construction.
Three Squirrels, which started as an online snack brand, has been continuously strengthening its own manufacturing and supply chain control capabilities in recent years. Nut products have high requirements for raw material selection, roasting temperature, moisture content, blending ratios, foreign object detection, packaging sealing, and warehousing turnover. The stability of the production process directly affects taste, shelf life, loss rate, and consumer repurchase. The subsidy received by the nut intelligent manufacturing company will help it continue to invest in production organization, equipment operation, quality management, and delivery efficiency, while also providing Three Squirrels with stronger manufacturing capacity in its core nut category.
The 21.4036 million yuan subsidy accounts for 13.78% of the absolute value of the net profit attributable to the parent company in the most recent fiscal year, having a certain impact on the company's current period profit performance. Income-related subsidies are usually recognized in current period profit or loss or deferred, depending on the nature of the subsidy and the applicable accounting standards. Three Squirrels noted in the announcement that the final accounting treatment and its impact on the company's profit and loss are still subject to confirmation by the audit institution after the annual audit.
Government subsidies received by food companies are often related to local industrial support, intelligent manufacturing transformation, capacity construction, job stabilization and expansion, or enterprise operational support. Three Squirrels is headquartered in Wuhu, Anhui, and the food processing chain where the Wuhu Nut Intelligent Manufacturing Company operates is linked to the local leisure food industry, agricultural product deep processing, and consumer goods manufacturing base. With the subsidy funds entering the manufacturing entity, the company can gain more financial buffer in nut processing, quality control systems, automated production lines, and warehouse-distribution coordination.
Competition in the leisure food industry has expanded from pure brand traffic to supply chain efficiency and manufacturing costs. Online platform fees, raw material price fluctuations, promotional rhythms, and channel structure changes all compress brand profit margins. For Three Squirrels to maintain competitiveness in its core nut category, it needs to form more stable coordination among upstream raw material procurement, midstream processing and manufacturing, and downstream omni-channel fulfillment. The Wuhu nut intelligent manufacturing entity undertakes the production and delivery links in this chain, and with the subsidy received, its manufacturing investment space has further expanded.
This subsidy alone cannot represent an improvement in the main business, but it will enhance the company's periodic profit flexibility. Three Squirrels' long-term performance still depends on product structure, channel efficiency, raw material costs, production yield rates, and its own manufacturing capabilities. The subsidy received by the wholly-owned subsidiary Wuhu Nut Intelligent Manufacturing Company also indicates that the company's investments in the nut processing and food manufacturing system continue to receive local support.
