Zhengbang Technology denies "breeding loans" and lost more than 9 months of last year...

The trough period of the industry has not yet ended, and Zhengbang Technology, whose performance has changed its face, is again caught in the rumor that the capital chain is tight

Recently, a group of pictures of a suspected internal meeting of Zhengbang Technology appeared on the Internet, saying, "As the Chinese New Year is approaching, in order to pay the project settlement before the year before to prevent the pig farm from blocking the road, we can quickly obtain cash payments to suppliers in the name of employees (for breeding loans)

In the face of the rumor that "the company asked employees to apply for breeding loans", Zhengbang Technology said: the content of the online transmission does not match the facts

However, this does not prove that Zhengbang Technology can sit back and relax.

In the first nine months of last year, Zhengbang Technology achieved a revenue of nearly 40 billion yuan, but a net profit of more than 7 billion yuan, a sharp turn from profit to loss year-on-year

It is understood that Zhengbang Technology continues to finance through various methods, including but not limited to supply chain finance, financial leasing, short-term financing, green bonds, etc.

At the same time, in terms of production capacity construction, construction in progress can be stopped if it can be stopped, and slow if it can be slowed down

On the evening of January 18, Zhengbang Technology announced that: the company's breeding business segment adopts the cash-selling method, and the sales of live pigs are quickly paid back, and the biological assets have a strong ability to realize cash

Let employees handle farming loans? Zhengbang Technology: Internet content does not match the facts

Recently, a group of pictures of a suspected internal meeting of Zhengbang Technology appeared on the Internet, saying, "As the Chinese New Year is approaching, in order to pay the project settlement before the year before to prevent the pig farm from blocking the road, we can quickly obtain cash payments to suppliers in the name of employees (for breeding loans)

At the same time, the company will "provide cash rewards of 10,000-15,000 to participating employees, and the handling of farming loans will be used as an important reference indicator for year-end bonuses, stock allocation, salary adjustments, and promotions, and it is agreed to repay within 9 months

Are the above rumors true or false? On January 18, the Beijing News Shell Finance reporter called Zhengbang Technology several times, but the call was not answered.

On the afternoon of January 18, in response to the rumor that the company asked employees to apply for breeding loans, Zhengbang Technology replied to investors on the interactive platform that the content of the online rumors did not match the facts

Zhengbang Technology said: In order to fully mobilize the enthusiasm and sense of responsibility of farmers, make better use of the company's high-quality production capacity, and give full play to the company's large-scale and systematic advantages and superior breed advantages, the company has upgraded and iterated the pig breeding model to "company + fattening farm + settlement" model.

In Zhengbang Technology's view, compared with the traditional model of "company + farmer", the "company + fattening farm + settlement" model can be more conducive to the company's resource allocation control and centralized management, as well as the company's production and operation management, cost Improve and improve breeding efficiency

In the first nine months of last year, it lost more than 7 billion yuan, and the asset-liability ratio of Zhengbang Technology has exceeded 70%

As a large domestic pig breeding enterprise, Zhengbang Technology is mainly engaged in the production and sales of feed, pigs, veterinary drugs and pesticides, and provides comprehensive services such as products, breeding technical services, and plant protection technical services for farmers and growers

In 2019, the slaughter volume of Zhengbang Technology’s live pigs was 5.

However, as the pig cycle entered a downward phase, the price of pigs was low, and many companies fell into losses
.

A reporter from Shell Finance has combed through the data and found that since August 2018, due to the combined effects of the African swine fever epidemic and the new crown pneumonia epidemic, the production capacity of live pigs has declined, the market supply has been tight, and the price of pigs has increased significantly
.
In the first half of 2021, domestic fertile sows will recover rapidly, driven by high profits from breeding.
According to statistics from the Ministry of Agriculture and Rural Affairs of China, by the end of June 2021, there will be 45.
64 million fertile sows in the country, which is 102% of that at the end of 2017.

.
In the first half of 2021, 337.
42 million live pigs were sold, an increase of 86.
39 million or 34.
4% over the same period of the previous year.
With the continuous release of live pig breeding capacity, secondary fattening and slaughtering are common, and the impact of imported pork is superimposed, resulting in domestic pork supply.
Rapid growth; at the same time, combined with weak seasonal consumer demand from March to June, pork prices have fallen rapidly since May 2021, and the price of live pigs fell to 13.
9 yuan/kg at the end of the period, a drop of more than 60% from the price at the beginning of 2021
.

In the first half of 2021, Zhengbang Technology achieved an operating income of about 26.
679 billion yuan, a year-on-year increase of 61.
20%; the net profit attributable to shareholders of listed companies was about -1.
43 billion yuan, a year-on-year decrease of 159.
16%
.

Entering the third quarter of 2021, Zhengbang Technology's losses were even more serious
.

In the first three quarters of 2021, Zhengbang Technology achieved operating income of about 39.
971 billion yuan, a year-on-year increase of 22.
59%; net profit attributable to shareholders of listed companies was about -7.
627 billion yuan, a year-on-year decrease of 240.
39%
.

At the same time, Zhengbang Technology's asset-liability ratio increased
.

As of the end of 2020, Zhengbang Technology's asset-liability ratio was 58.
56%; as of the end of June 2021, Zhengbang Technology's asset-liability ratio was 68.
57%
.

As of the end of September 2021, the total liabilities of Zhengbang Technology were approximately 44.
789 billion yuan, and the total assets of Zhengbang Technology during the same period were approximately 59.
536 billion yuan
.
In this way, its asset-liability ratio has reached 75%
.

In recent years, the scale of Zhengbang Technology's breeding business has expanded rapidly
.
On June 29, 2020, its announcement stated that Zhengbang Technology’s non-public offering of shares is expected to raise funds of no more than 8 billion yuan
.
The funds raised from this non-public offering will be used to develop the pig breeding business and supplement working capital after deducting the issuance expenses
.

At the same time, companies have seen a sharp increase in short-term borrowings starting in 2015
.
As of the end of the third quarter of 2021, it was 13.
99 billion
.

On January 12 this year, an investor asked Zhengbang Technology: "Does the company still have a source of funds? The price of pigs has not risen, how can the company's cash flow be guaranteed?"

On January 15, Zhengbang Technology replied: "At present, the company's production and operation are normal
.
On the one hand, the company finances through the combination of stocks and debts, and on the other hand, adjusts the pace of development, disposes of idle production capacity in a timely manner, and ensures the efficient and orderly production and operation of the company
.
"

Holding a group for warmth, Zhengbang Technology joins hands with Shuanghui to develop

In the face of the downward pressure on the pig cycle, major pig companies are actively reducing costs and increasing efficiency, and some pig companies have started a group heating mode
.

On January 14, 2022, Zhengbang Technology and Shuanghui Development signed the "Shuanghui Zhengbang Strategic Cooperation Framework Agreement".
The two parties plan to rely on the purchase and sale of live pigs to improve the industrial chain, enhance the value chain, and open up the supply chain.
high-quality development
.

Zhengbang Technology said: The company has established a strategic partnership with Shuanghui Development, which is in line with the company's actual development needs and will have a positive impact on the company's future business development and will not affect the company's business independence
.

"The signing of this agreement is not expected to have a significant impact on the company's operating performance this year
.
" Zhengbang Technology said
.