Tech-Bank Food Co., Ltd. has secured about USD 103 million in restructuring investment from industry players Xiamen C&D and Nanning Liyuan. The state-owned and private agribusinesses will acquire 200 million new shares at a 57.45% discount to market price, strengthening Tech-Bank’s capital base without altering control. With debt down by over USD 7 billion and a debt ratio falling to 71.79%, Tech-Bank appears to be stabilizing. Financial investors are also expected to participate shortly, signaling further capital injections into China’s recovering pig industry.
In a pivotal move for China’s pig farming and feed industry, Tech-Bank Food Co., Ltd. has secured a total investment of CNY 740 million (about USD 103 million) from two major agribusiness players: Xiamen C&D Commodity Trading Co., Ltd. and Nanning Liyuan Grain & Feed Co., Ltd. The restructuring plan, finalized on May 8, was approved by Tech-Bank’s Investor Review Committee and marks a key phase in the company’s financial turnaround.
Deal Details: Discounted Entry for Strategic Investors
Under the restructuring agreement, both Xiamen C&D and Nanning Liyuan will acquire 200 million shares each at CNY 1.85 per share—a 57.45% discount from the 20-day average market price of CNY 3.22. Their individual investment commitments amount to CNY 370 million (about USD 51.90 million), making up the entire CNY 740 million capital injection.
Once the deal concludes, these new shares will represent approximately 7.63% of Tech-Bank’s expanded equity base. As of the end of 2024, Tech-Bank had a total of 2.22 billion shares outstanding. Despite the new investments, control of the company is expected to remain with current chairman and general manager Zhang Banghui, who holds a 14.94% stake.
The investment consortium also includes financial backers such as China Foreign Economy and Trade Trust Co., Ltd. and Beijing Shuangna Special Asset Management Co., Ltd.—the former of which has participated in similar deals like the restructuring of Aonong Bio.
Although their final capital commitments remain unspecified, they are expected to sign supplementary agreements within 20 working days, in accordance with the restructuring framework.
Tech-Bank’s Recovery in Context
As of Q1 2025, Tech-Bank reported total liabilities of CNY 9.87 billion (about USD 1.38 billion), down by over CNY 5 billion (about USD 700 million) compared to year-end 2023. Its debt ratio also improved to 71.79%, a drop of 14.94 percentage points. These improvements are critical for the company’s long-term viability in China’s volatile pig farming sector.
Strategic Investors: Profiles in Industry Strength
Xiamen C&D Commodity Trading Co., Ltd. is a subsidiary of Xiamen C&D Inc., itself a state-owned enterprise ultimately controlled by the Xiamen State-owned Assets Supervision and Administration Commission. For over two decades, it has specialized in agricultural commodities including oils, feed ingredients, and food raw materials. With annual turnover exceeding CNY 100 billion (about USD 14.03 billion) in 2024 and handling nearly 35 million tonnes of product, the firm is among China’s leading agri-supply chain operators. Its operations span major global production zones across North and South America, Europe, the Black Sea region, and the Belt and Road corridor.
Nanning Liyuan Grain & Feed Co., Ltd., a subsidiary of the publicly-owned yet collectively held Guilin Liyuan Grain and Oil Group, has grown from a regional feed manufacturer into a vertically integrated agri-enterprise. In 2024, the company produced 7.37 million tonnes of feed, sold 490,000 hogs, and maintained a breeding stock of 66,000 sows. Annual revenues surpassed CNY 22 billion (about USD 3.09 billion), with net profits of CNY 916 million (about USD 128.56 million).
AgriPost.CN – Your Second Brain in China’s Agri-food Industry, Empowering Global Collaborations in the Animal Protein Sector.
