TECH-BANK Food Co., Ltd. (ST Tianbang) has reduced its workforce by 23.75% as part of a major restructuring effort to enhance operational efficiency in pig production. The company produced 5.99 million hogs in 2024 and lowered fattening costs significantly. Despite financial challenges and underutilized facilities, TECH-BANK expects a net profit between CNY 1.36 billion and CNY 1.56 billion for 2024, bolstered by asset divestments and strategic realignments. The company is focused on improving productivity and capacity utilization through technical collaborations while maintaining stable financial operations.
In a strategic move within China’s livestock sector, TECH-BANK Food Co., Ltd. (ST Tianbang) has reduced its workforce by 23.75% in 2024. The restructuring aims to streamline operations and improve efficiency across its pig production business, Hanshiwei. Over the past year, staff numbers dropped from more than 8,600 to around 6,500, with Hanshiwei bearing the brunt of the cuts—its workforce shrinking from over 7,000 to about 5,000 employees.
This strategic overhaul ties into TECH-BANK’s objective to optimize productivity, with 2025 targets including a ratio of one breeding technician per 150 sows and one fattening worker per 5,000 pigs.
Production and Cost Management
In 2024, TECH-BANK reported a total production of 5.99 million pigs, including 3.93 million fattened hogs and 2.06 million piglets. Its meat processing division accounted for the slaughter of 1.58 million pigs.
Operational efficiency efforts reduced production costs, particularly for fattening pigs, with expenses dropping from CNY 16.72/kg (~USD 2.35) in Q1 to CNY 13.93/kg (~USD 1.96) by Q4. Despite these improvements, capital constraints, low facility utilization, and lighter slaughter weights remain challenges. The company aims to reduce fattening costs further to below CNY 12.80/kg (~USD 1.80) in 2025, subject to stable feed prices.
Facility Streamlining and Capacity Utilization
TECH-BANK maintained a breeding sow inventory of 261,800 head by the end of 2024. While the herd size experienced modest growth, the company closed 73 farms, including six breeding and 67 fattening units. It now operates 89 breeding farms and 112 fattening facilities, with 46% and 43% utilization rates, respectively.
To address underutilization, TECH-BANK established Hefei Hi-Ker Pig Management Services. This new subsidiary aims to enhance capacity utilization through technical collaboration and integrated supply chain solutions.
Financial Recovery
TECH-BANK’s financial turnaround is gaining traction after a net loss of CNY 2.88 billion (~USD 419.2 million) in 2023. The company forecasts a net profit between CNY 1.36 billion and CNY 1.56 billion (~USD 197.8–227.0 million) for 2024. Contributing to this recovery was a CNY 995 million (~USD 144.8 million) gain from selling a 32.91% stake in Shiji Bio in Q1 2024.
Stabilizing the Path Forward
TECH-BANK emphasized its commitment to financial stability, with no reported delays in wage payments or contract farming settlements. Bank loans and credit lines with agribusiness partners are being refinanced, providing further stability to the supply chain.
With restructuring and cost-efficiency measures underway, TECH-BANK is positioning itself to navigate China’s highly competitive pig production sector more sustainably.
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