Wens has defended its investment in the pet food sector, saying the move is based on long-term industrial synergies rather than short-term market trends. Through Wens Investment, the company acquired more than 48% of Qingdao Shuang’an Biotechnology for about CNY 147 million (USD 20.47 million). Wens said the investment can leverage its strengths in raw materials, food processing, and quality control, while also warning that profit contributions and business synergies be uncertain due to external factors.
Wens has defended its move into pet food after investors questioned why the Chinese livestock producer entered the sector only when the industry was in decline.
Earlier this year, Wens, through its wholly owned subsidiary Wens Investment, spent about CNY 147 million (USD 20.47 million) to acquire more than 48% of Qingdao Shuang’an Biotechnology, marking its entry into the pet food segment.
Qingdao Shuang’an has 3 subsidiaries. Its wholly owned subsidiary Liaoning Haichen Pet Organic Food is described as a leading comprehensive pet food processor in China and holds both domestic and overseas organic certification.
In 2023, Liaoning Haichen completed construction of the third phase of its 5G-enabled smart factory, bringing total production capacity to about 140,000 t. Its portfolio covers dry food, wet food, treats, and nutritional products for dogs and cats.
Synergies rather than short-term popularity
Wens said the strategic investment followed multiple rounds of research and careful evaluation. The decision, it said, was based on its strategy of building an ecosystem around its industrial chain rather than following short-term market trends.
“Industrial synergy is the main priority in our external investments, and decisions will not be made simply on the basis of short-term industry popularity,” Wens said.
The company added that pet food has stable, long-term consumer demand. Wens believes its existing resources in raw material supply, food processing, and quality control can generate synergies with the pet food business.
At the same time, the company cautioned that external factors could create uncertainty over both the operational synergies and profit contribution from the transaction.
Investments across the agricultural chain
Investors have also raised questions about the returns generated by Wens Investment and the value it brings to the wider group. Wens recently responded to those concerns as well.
As the company’s strategic investment platform, Wens Investment focuses on opportunities across the agricultural and livestock value chain, supporting core businesses including livestock and poultry production and food processing.
Its investments in recent years include the acquisition of Jinghai Poultry, which expanded Wens’ presence in white broilers and strengthened its poultry production portfolio.
The company has also made strategic investments in Anyou Group and Tiaozhan Animal Health, seeking procurement synergies in feed raw materials and veterinary medicines to reduce production costs.
Other investments include Laset intelligent farming robots and Qiaoyi Logistics, aimed at improving the level of intelligent livestock production and strengthening strategic cooperation in agricultural logistics.
Wens Investment has also invested in projects including Hengxin Bio, using slaughter by-products to develop higher-value products such as gelatine and collagen and extend the profit chain of its meat business.
Its investment in Qingdao Shuang’an adds pet food to that portfolio. Wens said the business can make use of its own livestock and poultry raw materials while opening up a new consumer segment.
In addition, the investment platform continues to incubate businesses in supporting areas including breeding, animal health, agricultural and livestock environmental protection, and cold-chain transportation.
Contribution to group profit remains limited
Wens stressed, however, that industrial investments generally require long development periods.
“Industrial investment has a relatively long cultivation cycle, short-term financial returns are limited, and the contribution to the company’s overall profit is still relatively small,” the company said, reminding investors to pay attention to investment risks.
According to Wens’ 2025 annual report, Wens Investment had total assets of about CNY 9.6 billion (USD 1.34 billion) and net assets of about CNY 5.8 billion (USD 807.80 million).
In 2025, it generated revenue of CNY 1.496 billion (USD 208.36 million), of which CNY 1.471 billion (USD 204.87 million) came from livestock production. Net profit reached CNY 548 million (USD 76.32 million), including CNY 154 million (USD 21.45 million) from the livestock production business.
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