Wens will invest up to CNY 147.00 million (USD 20.47 million) to buy 48.18% of Qingdao Shuang’an Biotechnology, marking its entry into pet food. The deal includes performance and listing milestones backed by a buyback clause.
Guangdong Wens Foodstuff Group Co., Ltd. (Wens) said on February 5 it plans to enter the pet food segment through an equity investment of up to about CNY 147.00 million (USD 20.47 million). The company’s wholly owned unit, Guangdong Wens Investment Co., Ltd., will acquire more than 48% of Qingdao Shuang’an Biotechnology Co., Ltd. (Qingdao Shuang’an).
The transaction is structured in two steps: first, Wens Investment will buy part of the existing shareholders’ stakes; second, it will inject fresh capital into the business.
Two-step structure, 48.18% at a CNY 200 million (USD 27.86 million) valuation
Four existing shareholders will transfer a combined stake of about 22% to Wens Investment for around CNY 44.00 million (USD 6.13 million). Wens Investment will then subscribe to newly issued shares for CNY 103.00 million (USD 14.35 million).
After the share transfer and capital increase, Wens Investment will hold 48.18% of Qingdao Shuang’an. Both the legacy-share transfer valuation and the pre-money valuation for the capital raise are set at CNY 200 million (USD 27.86 million).
Among the selling shareholders is Wenrun Nongke No.1 (Zhuhai) Venture Capital Fund Partnership (Limited Partnership), a Wens-related party that invested in Qingdao Shuang’an in 2022 and holds close to 10%.
Wens Investment employee Ling Minrui will also subscribe to roughly 0.9% of Qingdao Shuang’an. The remaining shareholders are acting in concert, and the company’s actual controller remains Wang Fuzheng.
Governance rights and operating footprint
Under the investment agreement, Wens Investment can appoint two directors to Qingdao Shuang’an’s five-seat board. One of these directors will also serve as deputy manager, responsible for HR, administration, and finance, and will participate in procurement-related decision-making.
Qingdao Shuang’an was founded in 2010 and has three subsidiaries: Liaoning Haichen Organic Pet Food Co., Ltd.; Qingdao Shuang’andao Pet Products Co., Ltd.; and Liaoning Anjiu Animal Nutrition Food Co., Ltd., in which Qingdao Shuang’an holds 60%. The other shareholders in Anjiu are Anshan Jiuguhe Food Co., Ltd., under Wellhope Foods Co., Ltd., with 30%, and Taian County Urban Construction Investment Development Co., Ltd., a state-controlled entity, with 10%.
Liaoning Haichen is described as a leading integrated pet food processor in China and has obtained both domestic and international organic certification. In 2023, it completed construction of a 5G “smart” factory (phase III), taking total capacity to about 140,000 t. Products cover dog and cat dry food, wet food, snacks, and nutritional products.
Financials and performance triggers
Wens’ filing shows that, by the end of 2025, Qingdao Shuang’an had total assets of about CNY 506.00 million (USD 70.47 million) and net assets of about CNY 144.00 million (USD 20.06 million). In 2025, it generated revenue of CNY 407.00 million (USD 56.69 million) and net profit of CNY 12.00 million (USD 1.67 million).
The two sides also agreed that Wens may require Qingdao Shuang’an to repurchase the equity if audited attributable net profit misses agreed thresholds—CNY 60.00 million (USD 8.36 million) cumulatively for 2026–2028, and CNY 105.00 million (USD 14.63 million) cumulatively for 2029–2031—or if the company fails to complete a qualified listing by December 31, 2033 (on China’s A-share market or another exchange approved by the investor).
Why pet food, why now?
Wens said the investment is intended to build on its existing core strengths while expanding into a “high-quality niche track” with synergy and strategic value, lifting long-term sustainability and risk resilience. As projects at the target company ramp up, Wens expects a positive contribution to revenue and profit.
The company is also positioning the move as part of a broader industrial investment approach to build a collaborative ecosystem for longer-term development.
China’s pet feed momentum is one tailwind. The China Feed Industry Association said national industrial feed output hit a new high in 2025 at 342.253 million t, up 8.6% year-on-year. Pet feed output rose 17.9% to 1.884 million t—the fastest growth among all feed categories.
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