Aonong Bio has launched a 2026 restricted stock incentive plan valued at about CNY 600 million, a little over a year after completing its restructuring. The plan covers 393 employees and links future vesting to growth targets in revenue, feed sales, or hog shipments, including a requirement for hog shipments to rise by at least 30% in 2026 from the 2025 base.
Aonong Bio has rolled out a restricted stock incentive plan worth roughly CNY 600 million (USD 83.57 million), a little over a year after completing its restructuring.
According to the draft 2026 restricted stock incentive plan, the company intends to grant 139 million restricted shares to 393 employees, including chairman Su Mingcheng. That equals 5.34% of Aonong Bio’s total share capital.
The grant price has been set at CNY 2.10 per share, equivalent to 50% of the company’s average trading price over the 20 trading days before the draft plan was announced. Aonong Bio’s stock closed at CNY 4.40 per share on March 10. Based on that, the market value of the latest equity incentive plan comes to about CNY 600 million (USD 83.57 million).
Among senior management, Su is to receive 2 million shares. Three vice presidents — Yang Zhou, who also serves as chief financial officer, Lin Qiang, and Peng Jiang, who is also board secretary — are each set to receive 1.5 million shares. Another vice president, Hu Shaoyong, plans to subscribe for 500,000 shares.
The remaining 388 mid-level managers and core staff are together due to receive 122 million shares. Another 10 million shares, or 7.19% of the total grant, have been reserved.
Growth targets tied to feed, revenue, and hog shipments
At company level, the 2026 plan sets performance targets for 2026–2028 against a 2025 base. Revenue must reach no less than 120%, 140%, and 160% of the 2025 level over those 3 years, respectively; or feed sales volume, including internal supply, must meet the same 120%, 140%, and 160% thresholds; or hog shipments must reach at least 130%, 160%, and 190% of the 2025 level.
Aonong Bio has not yet disclosed its 2025 revenue or feed sales figures. Its hog shipments in 2025 were about 1.75 million head, still less than one-third of the peak level seen before restructuring.
The company expects net profit attributable to shareholders for 2025 to come in at CNY 90 million–135 million (USD 12.53 million–18.80 million), down 76.70%–84.47% year-on-year. Excluding non-recurring gains and losses linked to the restructuring, however, it still posted a loss of CNY 400 million–450 million (USD 55.71 million–62.67 million), although that would represent a year-on-year loss reduction of about CNY 750 million–800 million (USD 104.46 million–111.42 million).
Aonong Bio said the restructuring had improved its balance sheet structure. Going forward, it said it would stick to a strategy of “breaking through in feed, optimising pig production, and developing food,” with cost control, supply-chain coordination, and digital upgrades as key levers. Alongside stable development of its existing businesses, the company said it would also expand into deep-processed food, develop higher-value food products, build regional fresh-food brands, strengthen finance and corporate governance, and reinforce its legal, audit, and risk-control systems.
Fifth stock incentive plan since listing
This is Aonong Bio’s fifth restricted stock incentive plan since its September 2017 listing. The previous 4 were launched in 2017, 2018, 2020, and 2021. The 2021 plan covered 275 participants and granted a total of 13 million shares, with a market value at the time of about CNY 170 million (USD 23.68 million).
That 2021 plan originally included a hog sales target of no less than 4 million head, 7.5 million head, and 10 million head for 2021, 2022, and 2023, respectively. In September 2022, Aonong Bio revised the latter 2 targets down to 5.5 million head and 8 million head. Even so, actual shipments over those 3 years came to about 3.25 million head, 5.19 million head, and 5.86 million head. In 2024, the figure fell sharply again to 2.1 million head.
Although Aonong once ranked fifth among China’s listed pig companies by shipment volume in the first half of 2022, its financial strains had begun to show much earlier. Its debt-to-asset ratio jumped above 80% in 2021 and had climbed to 103.69% by 2023, leaving the company technically insolvent.
In February 2024, creditors formally applied for Aonong’s bankruptcy restructuring. The process was completed in December that year. Control of the company also shifted, with its controlling shareholder changing from Zhangzhou Aonong Investment Co., Ltd., previously controlled by former chairman Wu Youlin, to a consortium of restructuring industry investors that included Quanzhou Development Group.
AgriPost.CN – Your Second Brain in China’s Agri-food Industry, Empowering Global Collaborations in the Animal Protein Sector.
