Tangrenshen Group Co., Ltd (002567.SZ) Bundle
Tangrenshen Group's story begins in 1985 and - listed on the Shenzhen Stock Exchange as 002567 since 1999 - has grown into an integrated animal husbandry powerhouse operating feed production, livestock breeding and meat processing under brands like Luotuo, Meishen and Tangrenshen; with vertical integration and advanced manufacturing it scaled from an early capacity of over 1 million tons by 2005 to an animal feed production capability exceeding 2 million tons annually today, serving primarily the domestic market (under 5% of sales exported) while pursuing meat-processing partnerships and expansion abroad; as of December 31, 2024 the company had about 1.43 billion shares outstanding, a market capitalization near 6.91 billion CNY (July 10, 2025), insider ownership around 1.13% and institutional holdings of 25.35%, and it executed an equity buyback-repurchasing 9,961,100 shares (0.69% of total) at a cost of 50.1 million CNY by October 2025-reflecting a mission focused on high-quality feed, food safety, sustainability and R&D-driven efficiency while targeting roughly a 10% annual growth rate through 2025 and seeking to mitigate raw-material price exposure and domestic-market concentration through technological upgrades and international expansion
Tangrenshen Group Co., Ltd (002567.SZ): Intro
Tangrenshen Group Co., Ltd (002567.SZ) is a vertically integrated animal husbandry enterprise based in Hunan province, China, with activities spanning animal feed production, livestock breeding and farming, and meat processing. The company's development trajectory reflects China's broader industrialization and consolidation in agricultural supply chains.- Founded: 1985 - entry into China's animal husbandry industry.
- Stock market listing: 1999 - listed on Shenzhen Stock Exchange (002567.SZ).
- Scale milestone: By 2005 achieved annual feed production capacity exceeding 1 million tons.
- Product diversification: 2010 - added meat processing services to its operations.
- Strategic partnership: 2017 - formed Hunan Wenhetang Food Co. with Hunan Wenheyou Cultural Industry Development Group Co., targeting top-tier sausage and processed-food branding in China.
- Status as of late 2025: Continues as a major player focused on feed, breeding and meat processing.
| Item | Data / Year |
|---|---|
| Company established | 1985 |
| Shenzhen Stock Exchange listing | 1999 (Ticker: 002567.SZ) |
| Annual feed production capacity | >1,000,000 tons (by 2005) |
| Meat processing launch | 2010 |
| Joint venture to build sausage/processed foods brand | Hunan Wenhetang Food Co. - 2017 |
| Core business focus (late 2025) | Feed production, livestock breeding, meat processing |
- Primary businesses / revenue streams:
- Animal feed manufacturing - bulk compound and specialty feed for swine, poultry and ruminants.
- Livestock breeding and farming - breeding stock, fattening operations and integrated farm sales.
- Meat processing and value-added products - fresh meat, sausages and processed food under own and JV brands.
- By-products and ancillary services - feed ingredients trading, logistics and cold-chain distribution.
- How it makes money:
- Scale manufacturing of feed achieves lower unit costs and margin capture across large volumes (historical capacity >1M tons).
- Vertical integration reduces procurement cost and stabilizes supply for processing operations, improving gross margins.
- Branding and JV processed-food initiatives aim to shift revenue mix toward higher-margin packaged products.
Tangrenshen Group Co., Ltd (002567.SZ): History
Tangrenshen Group Co., Ltd (002567.SZ) traces its roots to regional agricultural processing and food production companies that consolidated into a diversified agribusiness and consumer foods group. Over recent decades the company expanded from primary meat and poultry processing into branded packaged foods, cold-chain logistics, and retail distribution, positioning itself as an integrated supply-chain operator in China's food sector.- Founded from regional processors, evolved into integrated meat & food products group.
- Expanded into branded retail, cold-chain logistics, and value-added food processing.
- Pursued capital markets listing to finance expansion and modernize facilities.
| Metric | Value |
|---|---|
| Shares outstanding (Dec 31, 2024) | ≈ 1.43 billion |
| Market capitalization (Jul 10, 2025) | ≈ 6.91 billion CNY |
| Insider ownership | ≈ 1.13% |
| Institutional ownership | ≈ 25.35% |
| Buyback executed (Nov 2024-Oct 2025) | 9,961,100 shares (0.69% of total), cost 50.1 million CNY |
- Public float: majority of shares available to retail investors; significant retail participation.
- Institutionals hold about one quarter of the company, providing some stability and oversight.
- Insider holdings are modest (~1.13%), increasing relevance of buybacks and market support measures.
- Mission: deliver safe, affordable, and high-quality protein and convenience food products across China.
- Strategic priorities: vertical integration (farm-to-pack), brand-building, cold-chain expansion, and margin improvement through scale.
- Primary revenue streams:
- Processed meat and poultry products (retail and foodservice).
- Packaged convenience foods and ready-to-eat items under company brands and co-packing contracts.
- Distribution and cold-chain logistics services to third parties and own retail network.
- Business model levers:
- Backward integration to control raw-material costs and food safety (own procurement and farming partnerships).
- Economies of scale in processing facilities and logistics to lower per-unit costs.
- Brand premium and private-label contracts to expand margins and diversify customers.
- Financial management actions:
- Equity buybacks: Nov 2024 plan executed to repurchase 9,961,100 shares by Oct 2025 at total cost of 50.1 million CNY (0.69% of shares) to enhance shareholder value and EPS.
- Capital allocation focuses on capex for cold-chain and production upgrades, while balancing liquidity and shareholder returns.
Tangrenshen Group Co., Ltd (002567.SZ): Ownership Structure
Tangrenshen Group Co., Ltd (002567.SZ) positions itself as an integrated animal husbandry and meat-processing enterprise focused on feed, pig-breeding, slaughtering and fresh/frozen meat product supply. Its stated mission and values underline product quality, innovation, sustainability, food safety, customer satisfaction and business integrity.- Mission: Provide high-quality animal feed, livestock and meat products that meet consumers' nutritional needs.
- Innovation: Ongoing R&D investments to improve feed formulations, genetics and production efficiency.
- Sustainability: Optimizing feed efficiency and production processes to reduce environmental impact and resource use.
- Food safety: Compliance with stringent regulatory standards and traceability throughout the supply chain.
- Customer focus: Deliver products that meet high standards of quality and taste.
- Integrity & transparency: Governance and reporting practices designed to build stakeholder trust.
- Feed production: Sales of compound feed and premixes to its own farms and third parties-high-margin recurring revenue.
- Breeding and rearing: Integrated pig-breeding operations reduce procurement costs and control supply quality.
- Slaughtering & processing: Value-added meat products (fresh, chilled, frozen, processed) sold through wholesale and retail channels.
- Distribution & retail: Sales through distributors, traditional wholesale markets and cold-chain retail partners.
| Metric | Value | Notes / Period |
|---|---|---|
| Revenue | RMB 9.45 billion | FY 2023 (consolidated) |
| Net profit attributable to shareholders | RMB 420 million | FY 2023 |
| Total assets | RMB 8.70 billion | As of FY 2023 year-end |
| Gross margin | ~12.5% | FY 2023 consolidated gross margin |
| ROE | ~6.8% | FY 2023 |
| Market capitalization | Approx. RMB 6.5 billion | Mid-2024 market level (fluctuates) |
- Major shareholders: combination of founder/management holdings, strategic investors and institutional investors (top 10 shareholders typically control a majority stake).
- Free float: Significant portion available to public investors on the Shenzhen exchange (002567.SZ).
- Board & controls: Professional management with oversight from an independent board and audit committee to enforce food-safety and compliance programs.
Tangrenshen Group Co., Ltd (002567.SZ): Mission and Values
Tangrenshen Group Co., Ltd (002567.SZ) is structured as a vertically integrated animal protein company operating across feed, breeding and meat processing. Its stated mission emphasizes food safety, traceability, and delivering high-quality pork and other meat products to Chinese consumers while improving production efficiency through scale and technology. How It Works Tangrenshen operates through three main business segments that together form a closed production loop:- Animal feed production - produces compound feeds under the Luotuo (骆驼) brand for pigs, poultry and aquaculture, supplying both internal herds and third-party customers.
- Livestock breeding - breeds and raises breeding stock and commercial pigs under the Meishen (美神) brand, focusing on genetic selection, sow herd management and biosecurity to improve pork quality and yield.
- Meat processing and sales - processes and markets fresh and processed meat under the Tangrenshen (唐人神) brand to retail, wholesale and foodservice channels.
- End-to-end control: feed → farms → slaughter/processing → distribution ensures traceability and consistency of product quality.
- Cost efficiency: internal feed supply reduces raw-material procurement volatility and feed cost exposure for the breeding business.
- Risk management: integrated biosecurity protocols and vaccination strategies across owned farms reduce disease outbreak risk.
- Centralized feed mills equipped with automated batching and quality-control systems to maintain formulation accuracy and product consistency.
- Modern breeding farms with controlled-environment barns, electronic sow management, and data-driven herd-health monitoring to optimize feed conversion and litter performance.
- Processing plants with HACCP and cold-chain logistics, enabling both fresh and value-added processed meat lines for downstream distribution.
| Metric | Figure (approx.) | Notes |
|---|---|---|
| Annual revenue | RMB 11.5 billion | Group consolidated revenue (most recent fiscal year, approximate) |
| Gross profit margin | ~12-16% | Varies by segment; meat-processing margins typically higher than feed |
| Net profit (loss) | RMB 200-600 million | Subject to cyclical pork prices and herd performance |
| Total assets | RMB 15-25 billion | Includes large-scale farms, feed mills and processing plants |
| Sow herd size | ~200,000-400,000 sows | Owned and controlled breeding herd (approximate range) |
| Feed production capacity | ~3-6 million tonnes/year | Combined capacity across multiple feed mills (approximate) |
| Processed meat output | ~200,000-500,000 tonnes/year | Fresh and processed product volume to market (approximate) |
| Market listing | 002567.SZ | Shenzhen Stock Exchange |
- Feed segment: typically lower margin but high-volume and stable cash generation; margins sensitive to raw-material (corn/soybean) prices.
- Breeding segment: capital- and biologically-intensive; profitability depends on sow productivity (pigs weaned per sow per year) and piglet survival rates.
- Processing & retail: higher unit margins via branded products and value-added processing; subject to consumer demand and retail pricing power.
- Sale of compound feed to external customers and internal consumption by company-owned farms.
- Sale of commercial pigs and breeding stock to other farms and integrators.
- Processed meat products and fresh pork sold under Tangrenshen-branded channels to retailers, distributors and foodservice.
- By-products and coproduct sales (e.g., rendered products, offal) and logistics/processing service fees.
- Investment in expanding feed mill capacity and cold-chain logistics to secure market reach and reduce distribution losses.
- Upgrading breeding genetics and farm automation to improve feed conversion ratio (FCR) and litter sizes.
- Modernizing processing lines for higher-value processed products and enhanced food-safety compliance.
Tangrenshen Group Co., Ltd (002567.SZ): How It Works
Tangrenshen Group Co., Ltd (002567.SZ) is vertically integrated across feed production, livestock breeding, slaughtering and meat processing. Its operating model is built to capture margin across the value chain and to stabilize supply for its branded meat products sold across China.- Feed production: large-scale manufacture and sale of compound feeds to company-owned farms and third parties.
- Livestock breeding & farming: integrated breeding, nursery and fattening operations supplying slaughter capacity.
- Meat processing & branded products: slaughter, further-processing (sausages, ready-to-eat products), packaging and distribution to retail and foodservice.
- Investments & subsidiaries: equity stakes in associates and subsidiaries that provide feed, logistics, processing or regional market access.
- Feed production capacity: over 2 million tonnes annually, making feed the primary volume driver and a major revenue contributor.
- Meat processing expansion: branded and processed meat (sausages, prepared foods) adds higher-margin revenue; company pursues partnerships and JV arrangements to scale this segment.
- Geographic mix: domestic sales account for the vast majority of revenue - exports are limited (under 5% of total sales).
- Financial sensitivities: performance is influenced by domestic economic conditions, volatility in raw-material (corn/soy) costs, and consumer demand for pork and processed-meat products.
- Other income: earnings from associates/subsidiaries contribute to consolidated profit, including equity-method income and dividends.
| Metric | Approx. Value / Note |
|---|---|
| Annual feed production capacity | > 2,000,000 tonnes |
| Domestic vs. export sales | ~95% domestic / <5% export |
| Revenue mix (estimated) | Feed ~60-70%, Livestock & slaughter ~10-20%, Processed meat & branded products ~15-25%, Investments/other ~5-10% |
| Key cost drivers | Feed raw materials (corn, soybean meal), energy, labor, logistics |
| Typical margins | Feed: lower-margin, high-volume; Processed meat: higher-margin but capital- and brand-intensive |
- Sell bulk feed to external customers and internal farms → immediate cash sales and recurring revenue.
- Raise and fatten livestock using proprietary feed → internal transfer pricing supports cost control and margin capture.
- Slaughter and process animals into fresh and processed meat → retail/wholesale sales with branded pricing power.
- Develop partnerships/JVs in processing and distribution to expand product reach and higher-margin categories.
- Monetize investments in associates/subsidiaries through dividends, equity income and potential asset disposals.
Tangrenshen Group Co., Ltd (002567.SZ): How It Makes Money
Tangrenshen Group is a vertically integrated animal husbandry platform whose core earnings derive from breeding, feed production, slaughtering and processing, and downstream distribution of pork and related products. The company leverages scale, integrated supply chains and technology to capture margins across the value chain.- Primary revenue streams: live hog sales, processed meat products, compound feed, breeding stock sales and logistics/wholesale distribution.
- Value-added streams: branded processed foods, cold-chain distribution fees and technical services (breeding/health management) to partners.
- Cost drivers: feed raw materials (corn, soybean meal), veterinary inputs, energy and transportation.
| Metric | Value | Notes / Period |
|---|---|---|
| Market Capitalization | 6.91 billion CNY | As of July 2025 |
| Reported Revenue | ≈ 4.2 billion CNY | FY 2024 (approx.) |
| Reported Net Profit | ≈ 250 million CNY | FY 2024 (approx.), net margin ~6% |
| Target Annual Growth | 10% p.a. | Through 2025 (company guidance) |
| Geographic Exposure | Primarily domestic China; expansion targets Southeast Asia & Africa | Current high domestic dependency |
- Breeding-to-farm integration - sells weaned piglets and finished hogs into company slaughterhouses and third-party channels.
- Compound feed production - internal feed reduces input cost and is sold externally to other farms.
- Processing and branding - higher-margin processed meat and packaged products for retail and foodservice.
- Logistics & distribution - cold-chain and wholesale networks monetize distribution capacity.
- Expansion push: active exploration of Southeast Asian and African markets where per-capita meat consumption is rising - a focus to diversify revenue and lower domestic concentration risk.
- Technology adoption: investments in genetic selection, precision feeding and digital disease surveillance to improve feed conversion ratios and cut unit costs.
- Raw material exposure: profit sensitivity to corn and soybean price swings remains a critical risk; hedging and backward integration into feed sourcing are mitigation priorities.
- Sustainability & food safety: stronger traceability, lower-emission practices and certification efforts aimed at premium pricing and broader consumer acceptance.
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