In the afternoon, I saw a news that Aonong Biotech was applied for pre-reorganization by creditors, resulting in the share price of Aonong Biotech falling for three consecutive days!
I know that the breeding industry is difficult, but it is difficult to this extent, which really surprises the industry!
Recently, listed companies in the aquaculture industry have disclosed their performance in 2023, according to statistical data, 18 listed aquaculture companies, with a cumulative loss of more than 20 billion, which can be described as a depression in the entire industry!
The development of Aonong biology can be said to be a miracle in the industry, established more than 6 years on the successful listing, this speed can definitely be called a miracle, but the development model of Aonong has been criticized by the industry from the beginning, especially heavy assets, heavy liabilities, long-term high asset-liability ratio, resulting in the company's capital flow in a tense state for a long time, which also for the future development, buried hidden dangers!
In the past two years, Aonong has gradually fallen from the altar, and the development is difficult, some time ago, Aonong was ready to cooperate with Dabeinong and was acquired by Dabeinong, but unexpectedly, it was just a preliminary plan, which led to Dabeinong ** almost falling to the limit, which fully reflected the capital market's disapproval of Aonong Biology. Dabeinong terminated the cooperation agreement in time, which also led to the original hope of survival of Aonong Biotech being extinguished!
Aonong's current state is linked to Jiangxi Zhengbang by the outside world, especially this time when the creditor applied for pre-reorganization, which is the second in the industry after Jiangxi Zhengbang, and is also regarded as following in the footsteps of Jiangxi Zhengbang. That's not a good sign!
The third year of the pig cycle is the most difficult year for pig companies.
As of January 31, 22 A-share listed companies involved in pig breeding business disclosed their 2023 performance forecasts, of which 18 companies recorded losses in net profit attributable to their parent companies, with a total loss of 24.829 billion yuan.
After experiencing the surge in pig prices after African swine fever in 2018, many pig companies have chosen to expand production significantly, and even new pig farmers have entered the market across the border. However, in 2023, when pig prices are at the bottom, with the gradual release of production capacity leading to oversupply, the expansion of production has brought a double test of operation and capital to enterprises.
Aquaculture industry, as a basic industry related to the national economy and people's livelihood, the development of the industry itself to the impact of the breeding cycle, but in the extreme, the state should carry out the necessary regulation and control of these industries to ensure that the industry can continue to develop benignly.
2023 has passed, and the farmers who have suffered losses are looking forward to the arrival of a new round of upward cycle.
I hope you hold on!