TechBank Food’s indirect wholly owned subsidiary Huzhou Nanxun Nongfa Muye has been accepted by a Zhejiang court for bankruptcy pre-restructuring, becoming the company’s second pig-farming subsidiary to enter such proceedings. The move comes amid ongoing contract disputes, heavy debt pressure, falling hog prices, and TechBank’s broader efforts to restructure liabilities, reduce costs, and improve operating efficiency.
Another pig-farming subsidiary of TechBank Food has been accepted by a court for bankruptcy pre-restructuring.
According to an announcement by TechBank Food on the evening of June 30, the People’s Court of Nanxun District, Huzhou, Zhejiang province, has approved bankruptcy pre-restructuring for Huzhou Nanxun Nongfa Muye, an indirect wholly owned subsidiary of TechBank Food.
The announcement said that, on June 26, 2026, Nanxun Nongfa applied to the Nanxun court for bankruptcy pre-restructuring on the grounds that it was unable to repay debts due, that its assets were insufficient to cover all liabilities, but that the company still had the possibility of restructuring. After reviewing the relevant circumstances, the court made the decision.
TechBank said that, should Nanxun Nongfa successfully complete pre-restructuring and proceed with restructuring, that would help optimise its asset-liability structure and improve its ability to continue operating and generate profits. “The company has already handled the matter in accordance with the relevant accounting standards in the earlier period. This arbitration progress is not expected to have a material impact on the company’s current-period profit or subsequent-period profit,” TechBank said.
A second subsidiary in pre-restructuring
It is the second subsidiary to be separately accepted for restructuring while TechBank Food itself remains in pre-restructuring. One year ago, another controlled subsidiary, Hangzhou Fuyang Nongfa Shengtai Yangzhi, had its pre-restructuring application accepted by the Hangzhou Intermediate People’s Court. Early this year, the court selected Zhejiang Construction Investment Group Co., Ltd. as restructuring investor.
In fact, Fuyang Nongfa, Nanxun Nongfa, and 3 other TechBank subsidiaries – Huzhou Wuxing Nongfa Muye, Quzhou Yihai Nongye, and Jiande Nongfa Muye Keji – all applied for enforcement-to-bankruptcy procedures because of contract disputes with Zhejiang Construction Investment. So far, the disputes involve CNY 1.296 billion (USD 180.50 million) in construction payments, as well as capital occupation fees, liquidated damages, arbitration fees, and other costs.
As early as 2024, Zhejiang Construction Investment filed arbitration applications with the Hangzhou Arbitration Commission against the 5 TechBank subsidiaries over construction contract disputes. The subsidiaries were subsequently subjected to compulsory enforcement measures by the court, including seizure and freezing orders. After the enforcement-to-bankruptcy applications were filed, Fuyang Nongfa was the first to see a potential way out: Zhejiang Construction Investment, as creditor, shifted from debt recovery to investment and planned to lead the restructuring with CNY 169 million (USD 23.54 million).
No new disclosure has yet been made on the progress of Fuyang Nongfa’s restructuring. The applications involving the other 3 subsidiaries are still under review.
At the same time, TechBank’s 5 subsidiaries also filed arbitration counterclaims against Zhejiang Construction Investment over engineering quality and other issues, involving a total amount of about CNY 362 million (USD 50.42 million). Last month, however, TechBank withdrew 4 of the 5 arbitration counterclaims, excluding the case involving Fuyang Nongfa, hoping to resolve the disputes through friendly out-of-court negotiations.
TechBank’s repeatedly delayed pre-restructuring
For TechBank Food itself, the road to pre-restructuring has also been far from straightforward. Since launching pre-restructuring in August 2024, the company has secured 4 extensions. The latest approved pre-restructuring deadline is November 9, 2026.
In 2025, TechBank signed restructuring investment agreements with industrial investors Xiamen C&D Commodities Co., Ltd. and Nanning Liyuan Grain, Oil & Feed Co., Ltd., as well as with 11 financial investors.
The company has also continued to push forward work on debt repayment, settlements, litigation, subsidiary restructuring, and related matters. Total liabilities gradually declined from CNY 14.913 billion (USD 2.08 billion) at the end of 2023 to CNY 9.631 billion (USD 1.34 billion) at the end of 2025, and further to CNY 9.377 billion (USD 1.31 billion) in the 1st quarter of 2026. At the end of Q1, its asset-liability ratio stood at 84.31%, up from 79.84% at the beginning of the year.
“Although the company has taken active measures to resolve its debt problems, it still faces a heavy interest burden, as well as industry pressure from the continued decline in hog sales prices. These are the main reasons for the current tight cash flow,” TechBank said at its 2025 annual results exchange meeting in May. “At present, the company is under heavy short-term debt repayment pressure and is still unable to repay debts due. Its goal is to resolve the historical debt burden through restructuring, optimise the debt structure, reduce the interest burden, and enable the company to truly move forward with a lighter load.”
Lower costs, tighter cash flow
In 2025, TechBank marketed 6.6635 million commercial pigs, generating revenue of CNY 8.689 billion (USD 1.21 billion), down 9.90% year-on-year. Net profit attributable to shareholders was CNY -1.309 billion (USD -182.31 million).
With hog prices falling and funds tight, the company moderately accelerated commercial pig marketing in Q1 this year to speed up cash turnover. It marketed 1.8078 million pigs, generating revenue of CNY 1.870 billion (USD 260.45 million), down 23.47% year-on-year. Net profit attributable to shareholders was CNY -707 million (USD -98.47 million).
Its all-in fattening costs in 2025 and Q1 2026 were CNY 13.31/kg (USD 1.85/kg) and CNY 12.66/kg (USD 1.76/kg), respectively.
TechBank has set a 2026 marketing target of 6.30 million pigs, with a full-year all-in fattening cost target of CNY 12.26/kg (USD 1.71/kg). To reach that cost target, the company plans to continue withdrawing from inefficient self-owned fattening farms, while upgrading biosecurity systems at large self-owned fattening farms that remain in operation. It also plans to optimise management and incentive mechanisms, creating a more efficient, lower-cost large-scale fattening model.
At the same time, TechBank intends to dynamically adjust the regional distribution and access standards for family farms and partner farms. Based on overall production capacity and marketing plans, it will arrange fattening models and structures in a more balanced way to optimise overall fattening efficiency.
The company also plans to strengthen gilt management, eliminate inefficient breeding pigs in a timely manner, increase the share of high-producing breeding pigs, raise PSY (pigs per sow per year), and reduce herd-entry costs. Its target is to keep PSY above 28 in 2026.
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