Wens plans to invest CNY 245 million (USD 34.12 million) in proceeds for 2 new Anhui projects: a hog farming zone with annual output of 124,000 hogs and a breeder farm producing 50 million chicks per year. The move comes as lower hog and broiler prices weighed heavily on Wens’ 2025 earnings and pushed the company into a first-quarter 2026 loss.
Wens plans to use CNY 245.00 million (USD 34.12 million) in proceeds from its 2021 convertible bond issue for 2 new livestock projects in Anhui province, the company said in an announcement on the evening of April 21.
The funds are part of the proceeds that, so far, have not been linked to a specific investment project. They will be used for a pig farming zone and a breeder farm.
The hog project will be located in Yongqiao district, Suzhou, Anhui, and is designed to market 124,000 hogs per year. It is scheduled for completion in June 2027. The breeder farm will be located in Feixi county, Hefei, Anhui, and will have annual output of 50 million chicks. That project is scheduled for completion in December 2027.
Total investment in the 2 projects will be CNY 150.00 million (USD 20.89 million) and CNY 180.00 million (USD 25.07 million), respectively. Wens plans to invest CNY 120.00 million (USD 16.71 million) of the raised funds in the hog project and CNY 125.00 million (USD 17.41 million) in the breeder farm.
Once operating at full capacity, the hog farming zone is expected to generate annual net profit of CNY 18.16 million (USD 2.53 million), with an internal rate of return of 12.82% and a static payback period of 9.15 years. The breeder farm is expected to generate annual net profit of CNY 12.03 million (USD 1.68 million), with an internal rate of return of 7.36% and a static payback period of 13.00 years.
Wens said the change would improve the efficiency of its raised funds, strengthen the company’s dual focus on poultry and hogs, and improve profitability by refining its livestock and poultry production capacity layout in Anhui.
On feasibility, the company pointed to strong national policy support for the livestock sector, including the acceleration of standardised, large-scale farming and the creation of more employment opportunities for farmers. Wens also said it has sufficient talent reserves in livestock and poultry farming teams, as well as a strong technical base in the sector.
“This change to part of the raised-funds use plan is a reasonable adjustment made prudently by the company in light of the current market environment, the company’s overall operation and development layout, and other objective circumstances,” the announcement said.
The same day, Wens also released its 2025 annual report and its first-quarter 2026 report. In 2025, the company recorded revenue of CNY 103.82 billion (USD 14.46 billion), down 1.67% year on year. Net profit attributable to shareholders of the listed company was CNY 5.27 billion (USD 733.43 million), down 43.25%.
Wens mainly attributed the decline to lower prices for broilers and hogs. In 2025, the company’s average selling prices for live broilers and live hogs fell by 9.80% and 17.95%, respectively.
In the first quarter of 2026, Wens’ revenue edged up 0.34% year on year to CNY 24.53 billion (USD 3.42 billion). Net profit attributable to shareholders swung from a profit of CNY 2.01 billion (USD 280.36 million) in the same period a year earlier to a loss of CNY 1.07 billion (USD 149.03 million).
Wens had previously expected the profitability of its poultry business in 2026 to be more certain than that of its hog business. Even so, the relatively large share of hogs in its business meant the company could not remain insulated from the rapid fall in hog prices. Lihua, another listed company also driven by both poultry and hogs, recorded net profit of CNY 155.00 million (USD 21.59 million) in the first quarter of 2026, although that was also down 24.85% year on year.
According to the annual reports, Wens’ broiler and hog businesses contributed 33.57% and 62.16% of its 2025 revenue, respectively. For Lihua, the corresponding shares were 78.10% and 20.84%.
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