Tiankang Bio Terminates Hog Farming Fundraising Project; Multiple Pig Producers Cut Capacity This Year

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Tiankang Bio plans to terminate the project for a 300,000-piglet breeding and 200,000-hog fattening base, which was part of its non-public share issuance fundraising investment projects, and will permanently use the remaining raised funds and interest of 324 million yuan to supplement working capital. The company said that due to persistently low hog prices and widespread industry losses, continuing the project would be difficult to achieve expectations. To implement the Comprehensive Regulation Plan for Hog Production Capacity in 2026 and improve capital efficiency, it decided to terminate the project. In the first half of this year, Tiankang Bio marketed 1.8484 million hogs, up 20.95 percent year on year, but the average hog selling price fell 42.33 percent year on year. The company achieved operating revenue of 8.325 billion yuan, down 5.89 percent year on year, and net profit attributable to shareholders of the listed company was negative 441 million yuan, swinging from profit to loss year on year. The company plans to market 4.75 million hogs this year, including 3.15 million from Tiankang and 1.6 million from Qiangdu Animal Husbandry. Notably, Tiankang Bio is not the only company adjusting capacity. This year, several listed pig producers, including Shennong Group, Xinwufeng, and ST Longda, have announced suspension or termination of hog farming projects. Data show that at the end of the second quarter, the national breeding sow herd was 37.8 million head, down 6.5 percent year on year and down 3.18 percent from the previous quarter, leaving only a 300,000-head gap from the normal stock target of 37.5 million head set by the Ministry of Agriculture and Rural Affairs.

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Hunan New Wellful Co Ltd
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Tiankang Bio terminates hog farming project due to low prices and industry losses, reflecting oversupply in the hog market.