“Or respond to the call, or make a show, or enclose the land in a disguised form, or for other purposes.” In December last year, independent financial commentator Zhou Zhengguo answered the question “How is real estate cross-border pig raising?” This question once said.
Now, some actions of the real estate giant Vanke seem to be conveying its determination to raise pigs to the outside world.
According to the Beijing News reported on March 3, Vanke’s acquisition plan for Huanshan Group, a well-known agricultural and animal husbandry company in Shandong, has entered the final stage.
The source broke the news that Vanke has completed the acquisition of 51% of Huanshan Group’s shares. With Huanshan Group’s performance “gambling” goal achieved, Vanke will soon complete 100% holding of Huanshan Group around June this year. “The pigs have begun to gather together (from various farms), and other assets are being compiled and counted.”
In addition, the main building of the pig farm under the “Lijinhua Raising Pig Co., Ltd.” that Vanke acquired at the end of July 2020 has been completed. It is expected that the plant will be completed in June and July this year and the first batch of sows will be put into pens. The pig farm has a total investment of 540 million yuan, covering an area of 2,400 acres, and the designed number of sows in stock is 22,500. After the project is completed, it is expected to produce 500,000 pigs for slaughter.
In Qingdao Huayu Breeding Co., Ltd., which is directly appointed by Vanke, the first phase of the project has already produced slaughter pigs, with approximately 9,600 slaughtered pigs produced annually.
01 Take down the ring
Huanshan Group was established in 1986, formerly known as Weihai Feed Co., Ltd., and began to enter the aquaculture industry in 2003. At present, the company’s main business includes food, pig breeding, eggs and poultry and feed. According to the “2019 Top 500 Agricultural Industrialization Leading Enterprises”, Huanshan Group ranked 190th.
It is understood that the company started IPO counseling in October 2016. At the end of October 2019, Huanshan Group stated that in view of the changes in the capital market situation, it decided to terminate the listing counseling. Perhaps at that time, Vanke had already focused on this piece of “fat”.
In December 2019, Vanke launched the “first attack” against Huanshan Group. At that time, Vanke successively formed two “legions”: Zhuhai Qinshan Jiaye Agricultural Development Co., Ltd. (hereinafter referred to as “Zhuhai Qinshan”) and Zhuhai Wanhai Ruitong Agricultural Development Co., Ltd. (hereinafter referred to as “Wanhai Ruitong” ).
Zhuhai Qinshan drove straight ahead and directly won 21.25% of Huanshan Group’s shares. Wanhai Ruitong adopted a roundabout strategy to invest in and control 5 “Weihai Series” partnerships that collectively hold 15% of Huanshan Group’s equity.
After more than half a year, Huanshan Group has become Vanke’s possession. In July 2020, Tan Huajie, a partner of Vanke and the chief partner of the food business department, became the chairman of Huanshan Group. Together with the appointment of Hu Ben and others in advance, Vanke Group has actually controlled the management of Huanshan Group.
This also means that Vanke’s wholly-owned acquisition of Huanshan Group has already been finalized, and only time is left.
02 “Long-planned” strategy
Some previous information shows that the acquisition of Huanshan Group or Vanke’s “long-planned” plan.
According to Jiemian News, Vanke has been planning pig raising matters internally since 2018, and Tan Huajie has been in charge.
In April of that year, Vanke signed a strategic cooperation framework agreement with agricultural products, and the two parties stated that they would cooperate in the construction of modern agricultural products planting and breeding bases.
In the same year, Vanke also sent teams to Chifeng City in Inner Mongolia, Baoji City in Shaanxi Province, Luochuan County and other cities to conduct inspections and discussions on the planting and breeding cycle agriculture project and the 500,000 pig breeding base project.
A securities researcher who has been following Vanke for a long time said that Vanke did not have much financial support in the initial stage of food-related business research. Affected by factors such as community value-added services that have been heating up under the epidemic, Vanke has accelerated the implementation of the pig raising plan. There is a relatively large capital investment.
In fact, Vanke’s layout in the pig industry did happen mostly after the outbreak. In March 2020, Vanke established a new food division, headed by Tan Huajie. According to the plan, in the initial stage of business development, the Food Business Department will mainly deploy pig breeding, vegetable planting, and corporate catering.
At the end of July 2020, while completing the control of Huanshan Group, Zhuhai Qinshan also wholly acquired Lijinhua Raising Pig Co., Ltd. Three months later, Zhuhai Qinshan invested in the establishment of Dezhou Hua Breeding Pig Co., Ltd.
In October 2020, Yu Liang, Chairman of Vanke’s board of directors, made a public response to the issue of pig raising. He said that Vanke raised pigs not because of “pig fat and thin real estate”, but because the Vanke property platform did a good job. Many people thought of this platform to sell things. . “Let’s just say, or try it yourself.” Yu Liang said that the pig raising business is part of the customer package and is a small attempt by Vanke.
Vanke is not the only real estate company that raises pigs across borders. In December last year, Liu Yonghao, the chairman of New Hope, publicly stated: “Today, there are more than 1,000 real estate companies in the country who switch to pig farming.”
As early as 2014, Wanda announced that it would invest 1 billion yuan in Guizhou to raise 300,000 pigs to help local people get rid of poverty, but in 2016 it announced that it would give up on the grounds that the investment in pig raising was too large, but the profit was too low.
In 2016, China Evergrande Group announced that it would invest 300 million yuan to build more than 110 pig farming and pastoral bases in Guizhou. In May 2018, Country Garden released the recruitment information for the “Pig Breeding Department Leader”. In June of the same year, Country Garden Agriculture Holdings Co., Ltd. was officially inaugurated.