Aonong Bio has announced the involvement of two key industry investors in its restructuring effort, which aims to enhance synergies within its core swine production business. Quanzhou Development Group and Hubei Grain Co. bring complementary capabilities that align with Aonong Bio’s strategic goals, particularly in pig farming and agricultural services. This partnership is expected to strengthen Aonong Bio’s position in the industry and drive future growth.
Aonong Bio has provided fresh insights into its ongoing restructuring during an online engagement with investors. The company confirmed that the selected investors include Quanzhou Development Group Co., Ltd. and Hubei Grain Co., Ltd., both categorized as strategic industry investors. The consortium leading the restructuring, named Quanfa Foreign Trade, also includes China Foreign Economic and Trade Trust Co., Ltd. The controlling shareholders of these three companies are the Quanzhou State-owned Assets Supervision and Administration Commission (SASAC), Hubei SASAC, and the State Council, respectively.
Concerns were raised regarding the pig farming expertise of the two industry investors. However, Aonong Bio reassured stakeholders that all selected investors have undergone comprehensive vetting and meet the company’s criteria. According to Aonong Bio, their businesses complement and enhance its core operations. The company is committed to advancing the restructuring process and will continue to update stakeholders on developments.
Quanzhou Development Group, a state-owned entity with assets exceeding CNY 60 billion (approximately USD 8.2 billion) by the end of 2023, operates across five sectors: investment and capital management, comprehensive financial services, construction and real estate, urban-rural services, and information technology. Notably, its rural services segment strongly connects to agriculture and pig farming, particularly through Quanzhou Rural Revitalization Group Co., Ltd., established in 2023. This subsidiary handles agricultural production, sales, processing, and logistics services.
In 2022, Quanzhou Development Group hosted a visit from the Quanzhou Swine Industry Association to explore collaborative opportunities within the pig sector. Additionally, the group’s financial services arm, Quanzhou Jintong Leasing Co., Ltd., has pioneered a leasing model for pig farming equipment and biological assets, directly supporting swine farms.
A delegation from the Quanzhou Swine Industry Association visited Quanzhou Development Group
Meanwhile, Hubei Grain Co., Ltd. entered the pig farming industry in 2022 by acquiring controlling stakes in several Zhengbang pig farms across Hubei, Anhui, and Jiangsu provinces. The transaction, valued at CNY 5.4 billion (approximately USD 740 million), facilitated debt restructuring and paved the way for further integration with Aonong Bio’s operations. Hubei Grain Co. has committed to providing competitive production feed and leasing facilities to its pig farming partners.
Nongfa Animal Husbandry Herb Co., Ltd.
Hubei Grain’s pig farming assets are now managed by its parent company’s subsidiary, Hubei Agriculture Development and Livestock Group. This subsidiary operates 13 large-scale farms, including core breeding and export-registered farms, with a combined annual capacity of 2 million hogs.
