Tang Ren Shen (TSR) plans to bring in China CITIC Financial Asset Management as a strategic investor in its pig farming subsidiary Hunan Longhua Animal Husbandry through a CNY 200.00 million (USD 27.86 million) capital injection. The funds will be used entirely to repay existing debt, helping reduce leverage and strengthen the subsidiary’s financial position. The deal values Longhua Animal Husbandry at CNY 448.00 million (USD 62.40 million) and comes as Tang Ren Shen (TSR) faces pressure from high debt levels, weak hog market conditions, and higher-than-expected farming costs.
Tang Ren Shen (TRS) is planning to bring in a state-owned asset management company (AMC) at one of its core pig farming subsidiaries, with the fresh funds set to go straight to debt repayment.
In an announcement on March 25, TRS said China CITIC Financial Asset Management Co., Ltd. intends to inject CNY 200.00 million (USD 27.86 million) in cash into Hunan Longhua Animal Husbandry Co., Ltd., its indirectly wholly owned subsidiary. In return, the investor would take a stake of close to 31% in Longhua Animal Husbandry.
China CITIC Financial Asset Management, formerly China Huarong Asset Management, is one of China’s 4 state-owned AMCs established in 1999 in the wake of the Asian financial crisis. At the time, it was tasked with taking over and disposing of non-performing assets carved out of Industrial and Commercial Bank of China. The company was listed on the main board of the Hong Kong Stock Exchange in 2015 under stock code 2799, and adopted its current name in early 2024. Its 2 largest shareholders today are CITIC Group, with more than 26%, and China’s Ministry of Finance, with close to 25%.
Longhua is one of TRS’s core pig production subsidiaries. According to the disclosed financial data, it posted revenue of CNY 799.00 million (USD 111.28 million) in 2024 and net profit of about CNY 32.60 million (USD 4.54 million). In the first 3 quarters of 2025, revenue was about CNY 649.00 million (USD 90.39 million), while net profit came in at about CNY 3.80 million (USD 529,247.91).
By the end of September 2025, Longhua had total assets of about CNY 1.419 billion (USD 197.63 million) and net assets of about CNY 271.00 million (USD 37.74 million). That implies a debt-to-asset ratio of roughly 81%, compared with 65.51% for TRS over the same period. The transaction values Longhua at CNY 448.00 million (USD 62.40 million).
Under the agreement, all of the capital injection must be used to repay existing financial liabilities at Longhua Animal Husbandry and entities within TRS’s consolidated group. Longhua and TRS are required to provide China CITIC Financial Asset Management with a detailed list of the debts to be repaid. In principle, the first repayment should be completed within 1 month after the funds are paid in, and all debt on the list should be settled within 3 months.
Longhua Animal Husbandry has also committed to annual distributable profit of no less than CNY 31.12 million (USD 4.33 million) in 2026, CNY 32.09 million (USD 4.47 million) in 2027, CNY 33.06 million (USD 4.60 million) in 2028, CNY 31.61 million (USD 4.40 million) in 2029, and CNY 32.58 million (USD 4.54 million) in 2030.
TRS said bringing in a strategic shareholder at Longhua reflects confidence in the subsidiary’s future development. The company added that the move should help create stronger links between operations and finance, lower its asset-liability ratio, and strengthen operations through equity financing at subsidiary level.
The backdrop remains challenging. TRS has previously said it expects a net loss of CNY 0.95 billion–1.15 billion (USD 132.31 million–160.17 million) for 2025, citing volatility in the hog market. Last year, the company sold 5.3325 million hogs, including 5.0752 million market hogs and 257,300 piglets, up 23% year on year.
TRS also said its sow farm capacity was basically running at full load by the end of 2025, while the costs of weaned piglets and fattening continued to trend down. Even so, because the company bought in some high-priced piglets for finishing, utilisation at its self-owned finishing farms fell short of expectations, limiting the decline in overall production costs.
According to the company, bought-in piglets accounted for a relatively large share of hog marketings in the third quarter last year, with average purchase costs above CNY 500.00 per head (USD 69.64 per head). Excluding that effect, all-in production cost in its Company + farmer model was CNY 13.30 per kg (USD 1.85 per kg) in the third quarter. For 2026, TRS is targeting 100% self-sufficiency in piglet supply and all-in cost of around CNY 12.60 per kg (USD 1.75 per kg).
