Investor.com" Ding Wanying.
Aonong Creatures, which was once known as the "dark horse of pig raising", has been "self-helping" since this year.
On December 13, the "dark horse of pig raising" Fujian Aonong Biotechnology Group Co., Ltd. (hereinafter referred to as "Aonong Biotechnology", 603363SH) announced that Aonong Biotech intends to acquire no less than 51% of the equity of Xiamen Aonong Investment, the controlling shareholder of Aonong Biotechnology, and Dabeinong intends to acquire the assets of Dabeinong Biotechnology.
It is worth mentioning that if the transaction can be successfully completed, the control of Aonong Biotech will change. At the same time, Dabeinong also signed the "Strategic Cooperation Intent Agreement" with Aonong Biotech, intending to invest or acquire the high-quality assets of Aonong Biotech in cash, and the proposed investment amount will not exceed 600 million yuan.
The "dark horse of pig breeding" may change hands
On December 13, Aonong Biotech announced that it had signed a "Strategic Cooperation Intent Agreement" with Dabeinong, and at the same time, the company's controlling shareholder, Aonong Investment, signed an "Investment Cooperation Intent Agreement" with Dabeinong (see figure below).
According to the agreement, the two parties will carry out strategic cooperation at the level of ** chain sharing, joint procurement, business resource integration, asset integration, equity cooperation, etc., and Dabeinong will purchase the assets of Aonong Biotechnology in the form of equity transfer or asset transfer, with an investment amount of no more than 600 million yuan. In addition, Dabeinong will acquire no less than 51% of the equity of Aonong Investment through capital increase and share expansion.
It is worth mentioning that after the completion of the transaction, Dabeinong may achieve control of the listed company Aonong Biotechnology by holding Aonong Investment.
Aonong Creatures, which was once known as the "dark horse of pig raising", changed hands?
According to the official website, Aonong Biotech was established in April 2011 and is a high-tech agricultural, animal husbandry and food enterprise oriented by standardization, standardization, intensification and industrialization, and its main business includes feed, pig raising, food and other industries. Listed on the Shanghai ** Stock Exchange in September 2017, the market covers most provinces (municipalities and autonomous regions) in China, with more than 300 subsidiaries and more than 13,000 employees.
In 2017, Aonong Biotech was listed on the Shanghai Stock Exchange, and more than 90% of its operating revenue at that time came from the feed business. After experiencing the impact of African swine fever in 2019, the entire pig breeding industry entered an upward cycle, and the following year, the gross profit margin of Aonong biological breeding business reached 9139%, the company's overall revenue scale has doubled, and the proportion of breeding business income has increased from about 15% in the previous year to more than 27%. In 2020, the net profit attributable to the parent company of Aonong Biotech was about 57.3 billion yuan, was crowned as the "dark horse of pig raising".
But since 2021, Aonong Biotech has begun to fall into continuous losses. In 2021 and 2022, Aonong Biotech lost 152 billion yuan, 103.9 billion yuan, with a total loss of 255.9 billion yuan. In 2021 alone, the net profit loss of Aonong Biotech will be 15200 million yuan, more than the total profit of the company since its listing.
In the first three quarters of this year, Aonong Bio's revenue was about 151800 million yuan, down 1 percent year-on-year47%；Net profit attributable to the parent company is about -12900 million yuan, a year-on-year decrease of 12522%；The net profit after deducting non-profits was about -145.2 billion yuan, a year-on-year decrease of 13632%。
As of the end of September this year, the cumulative loss of Aonong Biotech exceeded 3.8 billion yuan.
At the same time, Aonong Biotech is also facing a lot of debt pressure. As of the end of the third quarter, the asset-liability ratio of Aonong Biotech was as high as 8941%, of which short-term borrowings are about 405.1 billion yuan, in addition to 175.1 billion yuan of non-current liabilities due within one year and more than 1.5 billion yuan of long-term borrowings and other interest-bearing liabilities, with less than 300 million yuan of monetary funds on the books.
Cash flow is tight and wants to "save yourself".
Interest-bearing debt has become a huge burden for Aonong Biotech, so since last year, Aonong Biotech has taken repeated actions to "save itself".
On November 26 last year, Aonong Biotech disclosed a fixed increase plan, and the company plans to issue shares to specific objects to raise funds of 1.8 billion yuan, of which 53.9 billion yuan was used to supplement working capital, and the remaining funds were allocated to feed construction projects, food construction projects and acquisition of minority shares in subsidiaries respectively9.6 billion yuan, 50.3 billion and 26.1 billion yuan in funds.
Aonong Biotech said that the fixed increase is mainly to reduce the company's current debt level and provide financial support for the company's feed and pig breeding business activities. Hou Haofeng, deputy general manager and secretary of the board of directors of the company, also said that the completion of the fixed increase work is one of the company's key tasks this year.
During the year, after adjustments, the total amount of private placement funds raised by Aonong Biotech was lowered to 177.8 billion yuan, and the fundraising of supplementary liquidity projects was reduced to 51.7 billion yuan. However, up to now, this fixed increase plan has still not been implemented, and in November, Aonong Biotech also extended the validity period of the fixed increase again to the end of 2024.
On December 8, Aonong Biotech announced that it planned to transfer part of the equity of 8 loss-making subsidiaries to Aonong Investment at a transfer price of 1 yuan per company. Aonong Biotech said that through the implementation of the transaction, it is expected that the net assets attributable to the parent company in the company's consolidated statements will be increased by no more than 3 in the year of completionRMB 200 million will help consolidate the company's capital structure. In addition, these 8 target companies still owe about 7$300 million in current payments.
Aonong Biotech said that after the completion of this transaction, 7The net capital flow of 300 million yuan will passively form financial assistance for the target company.
Wu Youlin, the actual controller of Aonong Biotechnology, also repaid his debts by constantly pledging and transferring shares.
According to the announcement of Aonong Biotech on November 17, the total transfer of Aonong Investment and Wu Youlin, the actual controller, chairman and general manager of Aonong Biotech, through agreement transfer within 3 months, does not exceed 15.2 billion shares of Aonong Biotech (no more than 17.7 percent of the total share capital.)5%), the funds obtained are mainly used to repay the due debts, and the remaining funds are all used to support the operation and development of the listed company Aonong Biotech.
Since the beginning of this year, Wu Youlin, the actual controller, chairman and general manager of Aonong Biotech, has repeatedly repatriated funds through the introduction of strategic investors and the equity of subsidiaries, but it is far from enough for the current predicament of Aonong Biotech.
Aonong Biotech said that the alliance with Dabeinong will help improve the company's cash flow.
This round of pig cycle is relatively long
Aonong Biotech said that if the investment cooperation agreement signed between Aonong Investment and Dabeinong can be successfully promoted and completed, the company's control is expected to change.
It is worth noting that there are still uncertainties in the agreement between Aonong Biotech and Dabeinong. Dabeinong said that the assets and liabilities of Aonong Investment and Aonong Biotechnology are large and involve multiple industrial fields at the same time. Therefore, in the course of subsequent due diligence, if the Company finds that there are material disadvantages to the Company, or the parties to the transaction cannot reach an agreement on the disposal plan of the final assets and liabilities, etc., the transaction of increasing the capital of Aonong Investment may be terminated.
Xu Xiaoheng, an investment and financing expert, said that compared with before, this round of pig cycle is relatively long. Data show that from April to September this year, the number of newborn piglets in the country increased by 5% year-on-year9%, will be slaughtered in the next 6 months, which also indicates that the current pork market is more sufficient, and there may be a stage surplus of pigs, which will bring a lot of pressure to related breeding enterprises.
Feng Yonghui, chief analyst of Sopig.com, said that capacity reduction is a common problem faced by the industry, and in the state of oversupply, the entire industry needs to reduce production capacity to achieve a new demand balance point.
Dabeinong believes that although Aonong Bio is dragged down by the pig sector, other sectors have good investment value, which is in line with the overall direction of Dabeinong's future layout.
In response to the reason for this cooperation, Dabeinong said that the pig breeding industry as a whole is in a low stage and lasts for a long time, and the company, as one of the leading enterprises in agricultural science and technology in China's agricultural industry, hopes to join hands with other companies in the same industry to get out of the trough period of the industry. Aonong Biotech's business and the company's existing business have obvious industrial synergies, and the corporate cultures of the two parties are highly related, with certain investment value. Although Aonong Biotech is dragged down by the pig sector, its other sectors have good investment value, which is in line with the overall direction of the company's future layout.
According to the data, in addition to the pig breeding business, the main business of Aonong Biotech also includes the feed business, and at the same time, it is laying out the downstream pig slaughtering and food processing industry. With the "feed, pig raising, and food" business as the main business, and the supporting businesses such as "* chain service and agricultural Internet" have developed together, forming an integrated business model of the industrial chain.
According to Bai Wenxi, chief economist of IPG China, Dabeinong's ownership of Aonong Biotech is part of the internal adjustment and optimization of the pig breeding industry, which will help the two companies jointly respond to industry challenges and achieve sustainable development. In the future, the pig breeding industry will develop in the direction of scale, green, environmental protection and scientific and technological innovation under the role of policy support and market mechanism.
Whether the "group heating" can successfully fight the cycle remains to be further verified by the market. (Produced by Thinking Finance).