Breaking Down Tech-Bank Food Co., Ltd. Financial Health: Key Insights for Investors

From its founding in 1996 and a 2017 rename to Tech‑Bank Food Co., Ltd., this Shenzhen‑listed pork producer (002124.SZ) has grown into an industrial-scale operator-reporting a 2024 production of 5.99 million pigs (3.93M fattened hogs, 2.06M piglets) and running one of Asia's largest slaughter complexes in Linquan with a 5 million-pig annual capacity-while recording 2024 revenue of CNY 9.64 billion and net income of CNY 1.46 billion (≈15.1% net margin); with ~CNY 6.24 billion market capitalization as of late 2025, ~2.22 billion shares outstanding, insider ownership of 6.85% and institutions holding 9.95%, Tech‑Bank combines five business segments (Aquatic Feed, Biological Products, Pig‑Breeding, Fresh Food, Engineering Construction), a 261,800‑head breeding sow inventory at end‑2024, recent workforce cuts of 23.75% and structural moves (Hefei Hi‑Ker Pig Management Services, B2B/B2C channel expansion) aimed at driving its stated goal of breaking even in the food processing/slaughter division by 2025 while diversifying revenue via commercial pig sales, pork processing and animal vaccines-leadership changes include founder/CEO Banghui Zhang as largest shareholder and the September 2025 resignation of Vice President Yan Xiaoming; recent profitability signals include a trailing‑twelve‑months net profit of CNY 376.67 million and Q1-Q3 2025 revenue of CNY 6.719 billion with net profit of CNY 260 million.}

Tech-Bank Food Co., Ltd. (002124.SZ): Intro

• Founded in 1996, originally named Ningbo Tech-Bank Co., Ltd.
• Renamed in May 2017 to Tech-Bank Food Co., Ltd., reflecting strategic focus on pig breeding and pork processing.
• Growth through scale: by 2024 Tech-Bank reported total production of 5.99 million pigs (3.93 million fattened hogs and 2.06 million piglets).
• Operates one of Asia's largest slaughtering complexes in Linquan, Anhui, with annual processing capacity of 5 million pigs.

• Listed on the Shenzhen Stock Exchange (002124.SZ).
• Shareholder base includes institutional investors, domestic strategic partners and retail holders; market capitalization ~CNY 6.24 billion (late 2025).
• Vertical integration from breeding to slaughtering and processing reduces reliance on third parties and supports margin stability.

• Core mission: scale-efficient, biosecure pork production combined with downstream processing for stable supply to China's food market.
• Emphasis on biosecurity, breeding technology, and operational scale to improve yield and control costs.
• For corporate mission and vision statements updated to 2026, see: Mission Statement, Vision, & Core Values (2026) of Tech-Bank Food Co., Ltd.

• Breeding & farrowing: company-managed sow herds produce piglets (2.06 million piglets in 2024).
• Fattening: piglets moved to fattening facilities until market weight (3.93 million fattened hogs in 2024).
• Slaughtering & processing: centralized high-capacity plant in Linquan processes up to 5 million pigs annually, supplying packaged pork and processed products.
• Logistics & sales: distribution to wholesalers, retailers, foodservice and institutional buyers across China.

• Primary revenue from sale of live hogs and processed pork products (fresh cuts, chilled/frozen pork, value-added processed meats).
• Economies of scale and integrated operations improve gross margins and reduce per-unit production cost.
• Ancillary income from by-products, logistics optimization and potential breeding stock sales.

• Strengths: large-scale integrated production, significant slaughter capacity, demonstrated profitability in 2024 (net margin ~15.1%).
• Risks: commodity price volatility (feed, hog prices), disease/biosecurity events, regulatory shifts in food safety and environmental controls.

Tech-Bank Food Co., Ltd. (002124.SZ): History

• Listing: Shenzhen Stock Exchange (002124.SZ)
• Shares outstanding (late 2025): ~2.22 billion
• Insider ownership: ~6.85%
• Institutional ownership: ~9.95%
• Largest shareholder: Founder & CEO Banghui Zhang

• Deliver safe, high-quality food products using technology-driven processes.
• Scale sustainable supply chains and improve food production efficiency.
• Provide value to consumers, retailers, and institutional buyers through cost control and product innovation.

• Core activities: raw-material sourcing, industrial food processing, packaging, distribution and branded retail sales.
• Revenue streams: sales to supermarkets/retailers, foodservice contracts, private-label manufacturing, and specialty product lines.
• Profit levers: production scale economies, vertical supplier relationships, product-mix optimization, and channel expansion.
• Market access: public listing enables capital-raising for capacity and M&A to grow market share; the publicly traded shares support a diverse shareholder base and liquidity.

Tech-Bank Food Co., Ltd. (002124.SZ): Ownership Structure

• Mission and Values: Provide high-quality pork to meet rising domestic protein demand while prioritizing animal welfare and sustainable farming.
• Operational focus: Drive down unit costs through scale, automation and supply-chain integration to enhance margins.
• Innovation: Invest in precision farming, disease-monitoring systems and automated slaughter/processing lines to raise yields and reduce losses.
• Financial discipline: Reduce debt, improve cash flow and target break-even in the food processing & slaughtering division by 2025.

• Breeding & farming: Own and contracted farms produce piglets and finishers; revenue leverage from scale and biosecurity lowers mortality and feed conversion ratio.
• Slaughtering & processing: Adds product-value capture through branded fresh pork and processed meats-targeted to reach divisional break-even by 2025.
• Wholesale & retail channels: Sales across wholesale markets, supermarket chains and foodservice; margin mix improved via branded SKUs.
• By-products & vertical sales: Rendering, offal processing and feed-byproduct sales contribute incremental margin and cash flow.

• Break-even for processing/slaughter division: target 2025 (driven by throughput increases, yield improvements and fixed-cost absorption).
• Debt reduction: active refinancing and asset-light farm contracting aimed to lower net debt by ~15-25% over 2024-2025.
• Sustainability goals: phased adoption of waste-to-energy systems, reduced antibiotic use and certified animal-welfare practices across primary farms.

Tech-Bank Food Co., Ltd. (002124.SZ): Mission and Values

• Aquatic Feed - production and sales of feed for aquatic species and related raw materials.
• Biological Products - vaccines, diagnostics and biological inputs for livestock health management.
• Pig-Breeding - nucleus and commercial sow herds, genetic and herd-management services.
• Fresh Food - slaughtering, processing and distribution of pork and prepared fresh products.
• Engineering Construction - farm construction, equipment and technical project delivery for own farms and third parties.

• Breeding sows: maintained a breeding sow inventory of 261,800 head by the end of 2024, underpinning medium- to long-term hog supply.
• Slaughter capacity: the Linquan complex processes approximately 5 million pigs annually, acting as a central hub for processing and cold-chain distribution.
• Workforce optimisation: the company reduced its workforce by 23.75% to improve operational efficiency in pig production and lower unit labour costs.
• Technical collaboration: established Hefei Hi-Ker Pig Management Services to enhance capacity utilisation, herd performance and technical standardisation across farms.
• Channel expansion: moving beyond wholesale to expand B2B and B2C distribution, targeting restaurant chains and institutional catering to capture higher-margin, stable-volume contracts.

• Feed sales: recurring margin from bulk feed and specialty formulations to aquaculture and livestock customers.
• Biological products: higher-margin, intellectual-property-linked sales of vaccines and diagnostics to support herd health contracts.
• Breeding services and piglet sales: revenue from gilt/sow replacement, piglet sales and technical management services (including Hefei Hi-Ker).
• Slaughtering and fresh-food sales: integrated processing at Linquan supplies wholesale channels, branded fresh products for retail and foodservice accounts.
• Engineering and construction projects: fee-based income from farm builds, equipment supply and technical consulting for third-party clients.

• Vertical integration reduces margin leakage between feed, breeding and processing while enabling quality control from farm to fork.
• Large-scale slaughtering capacity (Linquan) supports both contracted B2B supply to institutional buyers and branded B2C retail volume.
• Workforce rationalisation and technical partnerships (Hefei Hi-Ker) aim to raise productivity per sow and lower breakeven costs per finished pig.

Tech-Bank Food Co., Ltd. (002124.SZ): How It Works

• Breeding and commercial pig sales - nucleus breeding, large-scale fattening farms and market sales of commercial pigs to downstream processors and live-market channels.
• Food processing and slaughtering - centralized slaughterhouses and pork product processing lines that turn live hogs into fresh pork and value‑added packaged products.
• Biological products and veterinary services - R&D, production and sales of animal vaccines and related biological inputs for disease prevention in livestock.

• Sale of commercial pigs and fresh pork: primary cash generator through volumes sold to wholesale markets, retailers and foodservice customers.
• Food processing division: margin capture via slaughtering fees, yield optimization, and branded/packaged pork product sales.
• Biological products division: recurring-margin business from vaccine sales to integrated farms and third-party customers; contributes diversification and higher margin potential.

• Vertical integration: reduces procurement costs and stabilizes supply, improving gross margin on pork products and commercial pig sales.
• Disease control & vaccines: lowers mortality and improves feed conversion ratios on company farms and external clients, supporting both biological product sales and swine productivity.
• Capacity utilization in slaughtering/processing: increasing throughput and higher-value product mix aimed at moving the food processing division toward profitability (break-even target set for 2025).
• Price and volume exposure: revenue sensitive to live hog prices and demand for fresh pork; risk mitigated by diversified revenue streams (biologicals, processing fees).

Tech-Bank Food Co., Ltd. (002124.SZ): How It Makes Money

• Core activities: breeding & piglet supply, contract farming partnerships, slaughtering & processing, packaged pork and chilled/frozen distribution.
• Strategic focus: restructuring and cost-efficiency to weather China's competitive pig-production sector and improve margins.
• Operational targets: food processing and pig slaughtering division targeted to reach break-even by 2025.
• Distribution expansion: moving beyond wholesale into B2B (restaurant chains, institutional catering) and B2C channels to capture higher-margin retail sales.
• Financial discipline: company reports no delays in wage payments or contract farming settlements, signaling liquidity/operational stability.
• Sustainability: investment in animal-welfare practices and environmentally responsible farming to align with global standards and consumer trends.

• Market capitalization: ~CNY 6.24 billion (late 2025).
• Break-even target: slaughtering & processing division aimed at break-even in 2025.
• Risk/efficiency moves: active restructuring and cost-control initiatives to improve EBITDA conversion.