After three years and 3.3 billion yuan in private placement approval, New Hope Liuhe has lowered its fundraising target twice.

Source: Taishan Finance

Taishan Finance Reporter Jing Ming

On the evening of April 1, New Hope Liuhe (000876.SZ) announced that the company received a registration approval from the China Securities Regulatory Commission, agreeing to the registration of the company’s issuance of shares to specific targets. This means that the 3.34B yuan private placement plan, which had been significantly scaled down twice over more than two years, has officially been implemented.

As a leading domestic agricultural and animal husbandry company, New Hope Liuhe has frequently used refinancing tools such as private placements in recent years to promote expansion and strategic adjustments. This private placement also marks an important milestone in its capital operation history.

Looking at recent operational data, the company’s performance fluctuates significantly with industry cycles. The asset-liability ratio remains high. In 2024, the company achieved operating revenue of 103.06B yuan, net profit attributable to the parent of 474 million yuan, a year-on-year increase of 90.05%, with a year-end asset-liability ratio of 69.01%. In 2025, performance faces further pressure, with an estimated net profit attributable to the parent of -1.5 billion to -1.8 billion yuan. As of the third quarter, the asset-liability ratio was 69.49%.

The private placement plan dates back to November 30, 2023, when New Hope Liuhe first disclosed its plan to issue A-shares to specific targets in 2023, aiming to raise no more than 7.35 billion yuan. The funds were planned to be used for biosecurity prevention and control at pig farms, digital and intelligent upgrades, acquisition of minority equity in controlling subsidiaries, repayment of bank debts, and other projects. At that time, the company’s pig farming business was in a critical expansion phase, and the large-scale fundraising aimed to comprehensively enhance capacity and asset quality.

However, affected by the capital market environment, industry cycle fluctuations, and operational adjustments, the plan was revised twice: in August 2024, the fundraising scale was first reduced to no more than 3.8 billion yuan, excluding the acquisition of minority equity in subsidiaries, with funds focused on pig farm upgrades and debt repayment; on January 12, 2026, the company revised the plan again, ultimately locking the total fundraising amount at 3.34B yuan.

According to the latest plan, out of the 3.34B yuan, 2.34B yuan will be used for biosecurity and digital upgrades at pig farms, mainly targeting the renovation of old pig farms in northern regions, improving positive pressure ventilation, intelligent feeding facilities, and enhancing biosecurity and production efficiency; the remaining 1 billion yuan will be used to repay bank debts, directly alleviating the company’s short-term financial pressure and optimizing the asset-liability structure.

The reporter noted that compared with the initial plan, the fundraising scale has been reduced by over 54%, with a focus on “filling shortfalls and reducing debt,” aligning with a strategy of steady operation during industry downturns. On February 13, 2026, the private placement plan was approved by the Shenzhen Stock Exchange’s listing review center, and on April 1, it officially received the registration approval from the CSRC, marking the plan’s entry into the issuance implementation stage. The company stated it would handle issuance, registration, and other related matters according to regulations and fulfill information disclosure obligations in a timely manner.

Reviewing publicly available information, since its listing, New Hope Liuhe has completed four private placements (including this approved issuance), raising a total of over 14.3 billion yuan, covering stages of asset integration, business expansion, and financial optimization, precisely matching the company’s strategic needs at different development cycles.

In August 2014, the company completed its first private placement after listing, issuing 344 million shares non-publicly to five shareholders including Southern Hope and New Hope Group, raising 3 billion yuan entirely for working capital, strengthening capital strength, and supporting the scaled development of traditional main businesses such as feed and breeding. At that time, the company’s asset-liability ratio was still relatively low, only 49.16% at the end of 2019.

In September 2020, the company again completed a private placement, issuing 177 million shares to New Hope Group and Southern Hope, raising net proceeds of 4B yuan, used for pig breeding projects and working capital. At that time, the pig industry was in a high prosperity cycle. By the end of 2020, the company’s asset-liability ratio was 53.06%. This private placement helped accelerate pig capacity expansion and promoted the company’s transformation from a “feed leader” to a “dual-core” of “feed + breeding,” with a significant increase in pig slaughter volume and rapid improvement in industry position.

In November 2021, the company issued 8.15 billion yuan of convertible bonds mainly for pig breeding projects, feed capacity construction, and debt repayment. However, subsequent sluggish pig prices slowed progress on some projects.

In 2021, the company’s performance suffered a significant loss, with net profit attributable to the parent of -9.59B yuan, and the asset-liability ratio rose to 64.98%. In 2022 and 2023, performance remained under pressure, with the asset-liability ratio staying above 70%, at 68.02% at the end of 2022 and 72.28% at the end of 2023.

After the implementation of this 3.34B yuan private placement, it will, on one hand, help the company complete digital and intelligent upgrades of pig farms, reduce breeding costs, and improve risk resistance, alleviating performance volatility; on the other hand, it can directly reduce 1 billion yuan of interest-bearing debt, further lowering the asset-liability ratio.

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