The restructuring of Tech-Bank Food Co., Ltd. (002124, hereinafter “Tianbang Food”), which has lasted for more than two years, has reached a key milestone. On the evening of 11 month 9, Tianbang Food announced that, following a comprehensive assessment by the investor review committee, Tongwei Group Co., Ltd. (hereinafter “Tongwei Group”) had been selected as the industrial investor in the restructuring. The two parties signed the Restructuring Investment Agreement on 11 month 8.
Announcement on Tianbang Food’s “Restructuring Investment Agreement”
Under the agreement, Tianbang Food plans to increase its shares by converting capital reserve into shares at a ratio of 10 new shares for every 13.8 shares, generating a total of 30.66 billion shares. Of these, Tongwei Group will conditionally acquire 14.70 billion shares at a consideration of 0.98 yuan per share, for a total investment of 14.41 billion yuan. The remaining shares generated by the conversion will be used to settle bankruptcy claims. Upon completion of the restructuring, Tongwei Group is expected to become the controlling shareholder of Tianbang Food.
Driven by expectations of a restructuring, Tianbang Food surged straight up and hit the daily limit in morning trading on 11 month 9; on 11 month 10, Tianbang Food opened higher again by about 9%, then fell back. At midday close, it was quoted at 2.19 yuan, with a market capitalization of about 48.66 hundred million yuan.
Recent share price trend of Tianbang Food
The announcement stated that after taking control, the Tongwei Group proposed short-term and medium- to long-term operating plans: in the short term, it would pursue cost reduction and efficiency improvement through industrial layout adjustments, supply chain support, and optimization of the governance structure and management system; in the medium to long term, it would continue to provide support through industrial synergies, management optimization, talent development, and capital operations, striving to build Tianbang Food into a high-end pig farming enterprise.
The investor, Tongwei Group, is a large multinational group with green agriculture and photovoltaic new energy as its two main businesses. Its actual controller is Liu Hanyuan, and its subsidiaries include Tongwei Co., Ltd. (600438). According to the company, Tongwei is a national key leading enterprise in agricultural industrialization. Its national market share of aquatic feed exceeds 20%, and it has ranked first nationwide for more than 20 consecutive years. It is also the world's largest producer of aquatic feed and one of the major producers of livestock and poultry feed. However, Tongwei Group's financial position is also under pressure. According to disclosures by Tianbang Food, Tongwei Group recorded net losses of 78.84 billion yuan and 118.53 billion yuan in 2024 and 2025, respectively. Its core operating entity, Tongwei Co., Ltd., recorded a net loss attributable to shareholders of the parent company of 67.59 billion yuan in the first three quarters of 2026, while its debt-to-asset ratio rose from 72.63% at the end of 2025 to 75.6% at the end of the third quarter.
Tongwei Group's key financial data for the past three years
Tongwei and Tianbang have a long-standing relationship. In 2021, Tianbang Food transferred all of its aquafeed assets and equity in part of its pig feed business to Tongwei Co., Ltd. for a transaction consideration of 12.71 hundred million yuan. After the transaction was completed, Tianbang Food shifted its focus to its core business of pig farming and became a downstream customer of Tongwei Co., Ltd.; in 2024, Tianbang Food sold 30% of Shiji Biology to a wholly owned subsidiary of Tongwei Co., Ltd. for 16.5 hundred million yuan. If this restructuring is completed, Tongwei's industrial chain will extend from feed and breeding pigs further into commercial pig farming.
The restructuring process has been quite tumultuous. In 2024 3, Tianbang Foods voluntarily applied to the court for restructuring and pre-restructuring. In 8 of the same year, the Ningbo Intermediate People's Court initiated pre-restructuring proceedings, after which the pre-restructuring period was extended several times. In 9 this year, the two originally selected industrial investors, Jianfa Materials and Nanning Liyuan, terminated their agreements one after the other. On 10 13, all 11 financial investors also signed termination agreements, and the company reopened its investor solicitation process. On 11 9, the Ningbo Intermediate People's Court decided to extend Tianbang Foods' pre-restructuring period until 2027 5 9.
How did Tianbang Foods end up on the path to restructuring? Founded in Yuyao, Zhejiang, by Zhang Banghui in 1996, the company started out in specialty aquatic feed. It listed on the Shenzhen Stock Exchange in 2007, then shifted to pig farming after acquiring Aigefei Agriculture and Animal Husbandry's pig-farming assets in 2013. Its annual hog sales grew from fewer than 46 ten thousand head in 2014 to 711.99 ten thousand head in 2023, and Zhang Banghui was dubbed the “Pig King of Zhejiang” by the media. But its aggressive expansion collided with a prolonged downturn in the hog cycle: the company's net loss attributable to shareholders of the parent company was about 44.62 hundred million yuan in 2021, followed by another loss of 28.83 hundred million yuan in 2023. At the end of 2023, its asset-liability ratio reached 86.73 percent.
Tianbang Food 2026 Key Financial Data for the First Three Quarters
The financial data show that Tianbang Food is on the verge of delisting. The third-quarter report shows that the company generated operating revenue of 53.74亿元 in the first three quarters, down 20.01％ year on year, and recorded a net loss attributable to shareholders of the parent company of 16.58亿元, turning from profit to loss, compared with a profit of 2.6亿元 in the same period last year. In the third quarter alone, its net loss attributable to shareholders of the parent company was 1.15亿元, an increase of approximately 24.5％ year on year. At the end of the third quarter, the company's debt-to-asset ratio had risen to 91.84％, and net assets attributable to shareholders of the parent company had fallen to 7.08亿元. The company also noted that it remains in the pre-restructuring stage. If the court rules to accept the restructuring application, the stock will be subject to a delisting risk warning; if the restructuring fails and the company is declared bankrupt, the stock will face the risk of termination of listing.
Industry fundamentals remain at the bottom of the cycle. According to industry data cited by Yicai, on 11 month 9, the national average price of three-way crossbred pigs fell to 8.63 yuan/kg, hitting a new low for the year and the lowest level in nearly ten years. The previous low for the year was 8.77 yuan/kg in mid-4 month. Separately, according to Yicai statistics, the combined attributable net profit of 25 A-share-listed pig farming companies in the first three quarters was a loss of 244.73 hundred million yuan, turning from profit to loss year over year. Excluding WH Group, whose main business is meat products, the remaining 24 companies reported a combined loss of 281.15 hundred million yuan. On the production-capacity front, leading companies have begun reducing their sow inventories, but the average weight of pigs marketed remains high, and supply pressure has not yet fundamentally eased.
If Tianbang Food’s restructuring succeeds, it will become another listed pig farming company to revive through industry collaboration, following Zhengbang Technology. Zhengbang Technology previously completed its restructuring by bringing in Twin River Group as an industrial investor. At the bottom of the pig cycle, integration trends are continuing: feed companies are extending into farming, while farming capacity is becoming more concentrated among leading companies.