In recent years, the food industry has gradually been favored by "capital", and investment enthusiasm has been rising. Even some capital in the pig industry has begun to target the food track and have deployed food business.

Among them, many pig companies such as Wen's Co., Ltd., Longda Food (formerly Longda Meat), Shuanghui Development, Tang Renshen, Shengnong Development, Tianbang Co., Ltd., and Zhengbang Group have entered the food track.

At present, the giants in the pig raising industry are showing such a phenomenon: the pig raising giants extend the industrial chain downwards and begin to deploy the slaughtering industry, and then extend to the food industry; while the slaughtering enterprise giants extend the industrial chain upwards and begin to invest in pig raising.

Even if there is no direct investment, we must sign a cooperation with the pig farming giant to further reduce the cost of the food business.

So why has the food track become the hotbed of capital?

What efforts have these giants made to develop their food business?

What will happen with the entry of capital into the food industry?

Shuanghui's development has suffered repeated setbacks. Can the throne of "Meat King" be retained?

Henan Shuanghui Investment Development Co., Ltd. was established in October 1998 and has a history of nearly 24 years.

Today, Shuanghui Development has built 30 modern meat processing bases and supporting industries in 18 provinces (cities) across the country, with more than 1 million sales terminals, and 10,000 tons of products are sold across the country every day.

According to the 2021 brand value list of the pig farming industry, the brand value of Shuanghui Development reached 73.846 billion yuan, setting a new high again. It must be said that the development is rapid.

However, in the past two years, Shuanghui's development does not seem to be going smoothly.

First of all, in 2021, the "struggle" between Shuanghui father and son, who is well-known throughout the industry, is really a big show for people to watch; secondly, in March this year, Shuanghui Development was once again exposed to "food safety" issues; it is reported that this is no longer Shuanghui's first

Food safety issues have been exposed for the first time, the most serious one being the "clenbuterol" incident in 2011. Shuanghui Development's stock price fell to the limit for a time because of this issue.

Judging from the revenue of Shuanghui Development in 2021, last year Shuanghui *** achieved revenue of 66.682 billion yuan, a year-on-year decrease of 9.72%, and the net profit attributable to shareholders of listed companies was 4.866 billion yuan, a year-on-year decrease of 22.21%.

Yurun Food achieved a "turn from loss to profit" and turned around again after restructuring. While Shuanghui Development's revenue declined, Yurun Food ushered in a big turnaround at this time. According to Yurun Food's 2021 performance, last year Yurun*

** Achieved revenue of HK$8.44 billion, a year-on-year decrease of 44.52%, and profit attributable to equity holders of HK$3.06 billion, turning a loss into a profit year-on-year.

However, it is worth noting that Yurun Food’s main business is still losing money in 2021, with a loss of HK$416 million, a decrease of approximately 56.6% from 2020.

It is understood that the profitability of Yurun Food this time mainly lies in its reorganization. After the reorganization, the overall size of Yurun Food has been reduced to less than 60% of its original size.

The assets and liabilities of its 44 subsidiaries were stripped from Yurun Food's comprehensive financial accounts, reducing Yurun Food's debt by RMB 1.554 billion.

It can be seen that although the reorganized Yurun Food cannot be compared with the development of Shuanghui in terms of size, it can achieve high-quality development after losing weight and gain light.

"Longda Meat" changed its name to "Longda Cuisine" and is committed to developing the food business. At the end of 2021, Longda Meat, which mainly focuses on slaughtering business, announced that it plans to change its name to "Longda Cuisine". In 2021, Longda Meat proposed a new strategy of "food

"As the main body, supported by breeding and slaughtering", it plans to invest 400 million yuan to enter the food business.

Due to changes in the company's strategic development, the company name also changed.

According to 2021 statistics, in the first half of last year, Longda Food's food business revenue only accounted for 7.29% of the company's total revenue, and has not yet formed the company's main revenue source. However, this does not affect Longda Meat's determination to expand its food business.

Longda Food believes that the food business has stronger profitability than the slaughtering industry. In the future, the company will adjust the "meat products industry" in the revenue structure to the "food industry", and as the company's food business scale continues to expand,

Its profit structure will also be more reasonable and stable.

In addition, according to the latest news, Wang Haojie was appointed as the executive vice president of Longda Food at the end of last year. According to public information, Wang Haojie has worked in Shuanghui for 22 years, with the highest position being vice president of Shuanghui Development. He also worked at Yurun

Work, the highest position is vice president and president of the deep processing division. This time he switches to Longda Food, what kind of world will he lead Longda Food to break into?

New Hope, Wen's, Tianbang, and Zhengbang have entered the food competition. In addition to the above-mentioned Shuanghui, Yurun, and Longda Cuisine, the "pig-raising giants" New Hope, Wen's, Tianbang, and Zhengbang have also entered the food competition.

road.

In fact, New Hope has been on the food track since May 2019 and has achieved quite good results.