"Jiangxi Pig King" under performance pressure was "scraped a layer of skin" by the typhoon

Produced by Radar Finance

Written by Zhou Hui

Edited by Meng Shuai

A typhoon has dealt an extra blow to Zhengbang Technology, the "Jiangxi Pig King" already grappling with underperforming operations.

On July 9, Zhengbang Technology released an announcement stating that several of its subsidiaries have suffered significant asset losses due to Typhoon Maysak. Preliminary estimates show that the asset losses from this disaster may exceed 10% of the company's audited net profit for the previous fiscal year.

On the same day, Zhengbang Technology also unveiled its semi-annual performance forecast. In the first half of this year, the company expects its attributable net profit to record a loss ranging from 700 million yuan to 800 million yuan, representing a year-on-year decline of 447.11% to 496.7%.

Zhengbang Technology explained that the decline in its performance is mainly caused by reduced profits from the hog farming business due to market fluctuations, alongside accrued expected credit losses on receivables and impairment provisions for part of its inventory.

Looking back at Zhengbang Technology's development, it grew gradually under the leadership of founder Lin Yinsun into a listed company covering feed production, hog farming, veterinary drugs and other related businesses.

In 2020, Zhengbang Technology's revenue once neared 50 billion yuan, with its attributable net profit surging to 5.744 billion yuan. In the same year, Lin Yinsun, with a personal fortune of 32 billion yuan, claimed the title of the richest person in Jiangxi on the 2020 Hurun Rich List.

However, after misaligning its operations with the hog market cycle and aggressively expanding production capacity, Zhengbang Technology saw its performance plummet, with its asset-liability ratio once soaring to 148.41%, eventually leading the company to file for bankruptcy reorganization.

In 2023, Jiangxi Twin Agriculture Co., Ltd. took over Zhengbang Technology as its reorganization investor. According to the reorganization plan, Zhengbang Technology pledged to "strive to reduce operational losses in the first year after reorganization is completed, and achieve profitability in the second year."

In 2025, although Zhengbang Technology's revenue rose 66.8% year-on-year to 14.795 billion yuan, its attributable net profit fell back into loss, recording an annual deficit of 546 million yuan, which meant the company failed to meet its post-reorganization profit target.

Pre-loss over 700 million yuan in half a year, further setback after typhoon landing

On July 9, two announcements from Zhengbang Technology, the "Jiangxi Pig King", laid bare the company's current difficult operational situation.

That afternoon, Zhengbang Technology released its "2026 Semi-Annual Performance Forecast". According to preliminary calculations by the company's finance department, in the first half of this year, the company's attributable net profit is expected to record a loss between 700 million yuan and 800 million yuan, in sharp contrast to the 202 million yuan profit in the same period last year, marking a year-on-year drop of 447.11% to 496.7%.

During the same period, Zhengbang Technology's non-recurring profit and loss excluded net profit is expected to record a loss ranging from 720 million yuan to 820 million yuan, a year-on-year decrease of 1303.80% to 1470.99%. Its basic earnings per share also turned from profit to loss, registering a loss of 0.0757 yuan per share to 0.0865 yuan per share.

Regarding the year-on-year decline of the above indicators, Zhengbang Technology explained in the announcement that during the reporting period, the company's hog segment sold 5.5821 million hogs, generating hog sales revenue of 4.094 billion yuan.

Affected by fluctuations in the hog market, during the reporting period, the average selling price of market hogs (excluding piglets) reached 5.23 yuan per jin, 2.04 yuan per jin lower than the same period of the previous year, which led to a year-on-year decline in the profits of the company's hog farming business.

In addition, in accordance with relevant provisions and requirements of the Accounting Standards for Business Enterprises, and based on the principle of prudence, Zhengbang Technology accrued expected credit losses on receivables and impairment provisions for part of its inventory.

However, misfortunes never come singly: the arrival of Typhoon Maysak swept away a large amount of Zhengbang Technology's profits.

On the evening of July 9, Zhengbang Technology issued an announcement stating that affected by the extreme rainfall brought by the recent super typhoon Maysak, part of the assets of the company's controlled subsidiaries including Guangxi Zhengbang Animal Husbandry Development Co., Ltd., Binyang Shuangmuding Animal Husbandry Co., Ltd., and Laifeng Songnong Animal Husbandry Co., Ltd. suffered flood damage, with no casualties reported.

Although Zhengbang Technology stated that it quickly launched an emergency response mechanism before the typhoon arrived and deployed preventive work in advance, the losses caused by this natural disaster are still significant.

According to preliminary on-site inspections, the pig farms and supporting facilities of several of the company's subsidiaries were damaged, with severe water accumulation inside the farms, which has caused a certain impact on hog farming production.

Zhengbang Technology said that since the involved farm areas are large and the inspection workload is heavy, the exact amount of losses is yet to be further determined. Preliminary estimates show that the asset losses caused by this disaster may exceed 10% of the company's audited net profit for 2025.

Nevertheless, Zhengbang Technology emphasized that relevant assets have already been covered by property insurance, and the actual loss amount needs to be further determined based on the inspection of damaged assets and the progress of insurance claims, which may differ from the current estimated figure. The final result will be subject to the company's annual audit.

From "Hog Farming Giant" to struggling for survival via reorganization

According to Tianyancha, Jiangxi Zhengbang Technology Co., Ltd. (referred to as "Zhengbang Technology") was registered and established in 1996.

As a listed national key leading enterprise in agricultural industrialization, Zhengbang Technology focuses on the full industrial chain business of livestock and poultry feed R&D, production, and hog farming.

At present, the controlling shareholder of Zhengbang Technology is Jiangxi Twin Agriculture Co., Ltd., and the actual controllers are the couple Bao Hongxing and Hua Tao, along with their daughter Bao Huayue.

However, the founder of Zhengbang Technology is actually Lin Yinsun, an entrepreneur of the Jiangyou ethnic group. In 1984, Lin Yinsun graduated from Jiangxi Grain School. The following year, at the age of 20, he volunteered to take the position of the second director of Linchuan Feed Factory.

At that time, the feed factory was mired in operational difficulties, with an annual output of only 6,000 tons and merely over 20 employees. After taking over, Lin Yinsun not only personally went to rural areas to promote feed products, but also used his professional knowledge to independently develop new formulas and promote technological innovation.

Under Lin Yinsun's leadership, the feed factory gradually turned from loss to profit, and expanded into Yonghui Feed Company. In 1996, Lin Yinsun formally established Zhengbang Group Co., Ltd. on this basis.

Around the turn of the millennium, Zhengbang Group seized the opportunity of state-owned enterprise restructuring to carry out mergers and reorganizations, and quickly entered the pesticide and veterinary drug sectors. In 2003, Zhengbang Group successfully acquired a hog breeding center, officially stepping into the farming industry.

In August 2007, Zhengbang Technology, a holding enterprise under Zhengbang Group, was successfully listed on the Shenzhen Stock Exchange.

From 2019 to 2020, domestic hog prices entered an upward cycle, and Zhengbang Technology rapidly expanded its production capacity through self-construction, renovation, and leasing.

In 2020, Zhengbang Technology's revenue approached 50 billion yuan, roughly doubling year-on-year; its attributable net profit surged from 1.647 billion yuan in 2019 to 5.744 billion yuan.

Thanks to the company's outstanding performance, Lin Yinsun's personal wealth also rose sharply, allowing him to secure the title of the richest person in Jiangxi on the 2020 Hurun Rich List, with a personal fortune of 32 billion yuan.

However, as hog prices fluctuated and declined, the operational risks hidden during Zhengbang Technology's previous aggressive expansion period were later exposed.

In 2021 and 2022, Zhengbang Technology's revenue declined for two consecutive years, with its cumulative attributable net loss exceeding 32 billion yuan. Meanwhile, the company's asset-liability ratio also rose sharply to a high of 148.41% at the end of 2022.

In June 2022, Zhengbang Technology released an announcement stating that affected by the hog market cycle, the company and several of its subsidiaries had overdue and unpaid commercial bills due to tight working capital. As of the announcement release date, the total overdue and unpaid balance reached as high as 542 million yuan.

In October of the same year, Jinzhou Tianli Grain Trade Co., Ltd., a long-term supplier of Zhengbang Technology, filed a petition to the court for bankruptcy reorganization of the listed company, on the grounds that the company was unable to pay off its due debts and was clearly insolvent, but still had reorganization value. In the same month, the Nanchang Intermediate People's Court decided to launch pre-reorganization proceedings for Zhengbang Technology.

In July 2023, the Nanchang Intermediate People's Court ruled that Zhengbang Technology should undergo bankruptcy reorganization. Twin Agriculture, as an industrial investor, subscribed for 1.4 billion A-shares converted from the listed company's capital reserve, and formally became the controlling shareholder of the listed company in December of the same year. Bao Hongxing, Hua Tao, and Bao Huayue subsequently became the new actual controllers of the company.

To resolve the issue of horizontal competition between the two parties, Twin Group once promised that within 2 years after obtaining control of the listed company, it would launch the procedure of injecting its businesses and assets into the listed company, and complete the overall listing of relevant businesses and assets within 4 years after the reorganization is completed.

Last December, Zhengbang Group disclosed that Twin Agriculture has already started the preliminary preparation work for asset injection, to ensure that relevant assets meet the compliance requirements for injection into the listed company.

Post-reorganization profit target missed, loss exceeded 500 million yuan last year

In the reorganization plan disclosed in 2023, Zhengbang Technology once stated that it would "strive to reduce operational losses in the first year after reorganization, and achieve profitability in the second year."

However, judging from Zhengbang Technology's performance in 2025, this target has been missed. In 2025, the company recorded revenue of 14.795 billion yuan, a year-on-year increase of 66.8%; but its attributable net profit fell back into loss, registering an annual deficit of 546 million yuan.

Regarding the net loss, Zhengbang Technology stated that it is mainly affected by factors such as price fluctuations in the domestic hog market.

According to monitoring data from the Ministry of Agriculture and Rural Affairs, in 2025, the average annual prices of live hogs, piglets, and pork reached 14.44 yuan/kg, 32.99 yuan/kg, and 25.23 yuan/kg respectively, down 9.2%, 15.4%, and 8.8% year-on-year. Calculations show that the average profit per slaughtered hog for the whole year was 31 yuan, 183 yuan less than that in 2024.

In 2025, although Zhengbang Technology achieved a substantial increase in the slaughter scale of its hog business — the annual hog slaughter volume rose 105.87% year-on-year to 8.5369 million head, and the farming business revenue increased 58.74% to 8.479 billion yuan, the cost of the farming business also surged 82.69% simultaneously to 7.529 billion yuan.

Affected by this, the gross profit margin of Zhengbang Technology's farming business dropped to 11.19%, a sharp year-on-year decrease of 11.64 percentage points.

During the same period, Zhengbang Technology's feed business achieved full-year revenue of 6.042 billion yuan, up 75.87% from the previous year, but its gross profit margin fell 0.03 percentage points year-on-year to 3.32%.

Dragged down by the declining gross profit margins of these two core businesses, the overall profitability of Zhengbang Technology has weakened. According to data from Tonghua Shun iFinD, in 2025, the company's sales gross profit margin was 7.98%, almost halved compared with 14.82% in 2024.

Entering 2026, Zhengbang Technology still failed to reverse its downward performance trend. In the first quarter, the company achieved revenue of 3.762 billion yuan, which represented a 25.32% year-on-year increase, but the growth rate slowed sharply compared with 108.22% in the same period of the previous year. Its single-quarter attributable net profit plummeted to -414 million yuan from 171 million yuan in the same period of the previous year.

In terms of assets and liabilities, as of the end of the first quarter, Zhengbang Technology's total assets stood at 19.309 billion yuan, with total liabilities of 10.095 billion yuan, resulting in an asset-liability ratio of 52.28%. Although this figure has dropped significantly from its previous historical high, it is still higher than the 44.91% recorded in the same period of the previous year.

Radar Finance will continue to follow up on the subsequent development of Zhengbang Technology.

This article is from the WeChat official account "Radar Finance", written by Editor X, authorized for distribution by 36Kr.