Tangrenshen Group Co., Ltd: history, ownership, mission, how it works & makes money

A Brief History of Tangrenshen Group Co., Ltd

Tangrenshen Group Co., Ltd, established in 1996, is a prominent Chinese enterprise specializing in the production of animal feed and meat products. The company is headquartered in Chengdu, Sichuan province. Initially, it focused on feed manufacturing and has since expanded its operations to include integrated livestock farming and food processing.

In 2000, Tangrenshen entered the poultry market, establishing its first large-scale chicken breeding project. By 2003, the company had become a leading supplier in the Chinese poultry sector, supported by its advanced farming technology and strict quality control measures.

In 2011, Tangrenshen went public on the Shenzhen Stock Exchange under the ticker 002567. The initial public offering raised approximately 1.17 billion RMB, which facilitated further expansion and modernization of their production facilities. The same year, the company reported revenue of 7.68 billion RMB, with a net profit of 640 million RMB.

By 2015, the company diversified its product range to include processed meat products, launching a brand of ready-to-eat meals and snacks targeted at urban consumers. This strategic move was integral for capturing a growing segment of the Chinese market that increasingly favored convenience and quality in food products.

In 2018, Tangrenshen Group invested heavily in automation and technology, aligning its operations with China’s push for modernization in agriculture. As a result, the company’s revenue grew to approximately 12.54 billion RMB, with net profits reaching 1.15 billion RMB.

The following year, 2019, marked the introduction of a new line of organic food products, capitalizing on the rising consumer demand for healthier food options. This initiative boosted the company's market share significantly.

Here is a snapshot of Tangrenshen's financial performance over recent years:

By mid-2023, Tangrenshen Group has continued to enhance its business model, focusing on sustainable practices and innovation, responding proactively to changing consumer preferences. The company's dedication to quality and safety has kept it at the forefront of the industry, with recent reports indicating a year-on-year revenue increase of around 8% in the first half of 2023.

As of October 2023, Tangrenshen's market capitalization stands at approximately 19 billion RMB, with ongoing investments in R&D and brand development. The company's stock has shown resilience despite market fluctuations, reflecting a stable trajectory for growth and profitability.

A Who Owns Tangrenshen Group Co., Ltd

Tangrenshen Group Co., Ltd, a prominent player in the livestock and feed industry in China, has a diversified ownership structure. The company's shares are publicly traded on the Shenzhen Stock Exchange under the ticker symbol 002567. As of the latest reporting period, Tangrenshen's total shares outstanding amount to approximately 1.09 billion shares.

The largest shareholder of Tangrenshen Group is Qingdao Huarui Investment Co., Ltd., which controls around 29.86% of the company's shares. This significant ownership stake positions Huarui as a key influence in the strategic direction of Tangrenshen.

Other notable shareholders include:

• Zhang Zhengwei - holds approximately 7.33% of the shares.
• Li Xiaoping - holds about 5.12%.
• Social Security Fund - holds around 2.89%.

The following table summarizes the ownership structure of Tangrenshen Group Co., Ltd as of the latest financial disclosures:

Overall, the distribution of ownership reflects a combination of institutional investors and individual stakeholders. This diverse ownership base may provide stability and influence in corporate governance, impacting Tangrenshen's growth strategy and operational decisions in the volatile market of livestock and feed production.

As of the latest earnings report for Q2 2023, Tangrenshen Group reported a revenue of approximately ¥4.5 billion, with a net profit of around ¥360 million, indicating a year-on-year growth of 12% in revenue and a 15% increase in net profit.

Furthermore, the company’s market capitalization stands at around ¥15.5 billion, reflecting its competitive position within the industry. The stock's price performance has shown resilience, with a year-to-date return of approximately 18%.

Tangrenshen Group Co., Ltd Mission Statement

Tangrenshen Group Co., Ltd, founded in 1996 and headquartered in Sichuan, China, operates primarily in the food industry with a focus on meat processing and products. The company's mission statement emphasizes the provision of high-quality, nutritious food products while ensuring sustainable agricultural practices and promoting healthy living among consumers.

The vision of Tangrenshen is to be a leading brand in the meat products sector, highlighting quality and safety as their core values. The company aims to enhance consumer trust through transparency and innovation in its production processes. Additionally, it focuses on contributing to the agricultural economy by supporting local farmers, thereby fostering community development.

As of 2023, Tangrenshen reported a significant revenue of approximately RMB 6.98 billion (around $1.01 billion), demonstrating a growth rate of 8.4% year-over-year from RMB 6.43 billion in 2022.

The company's commitment to health and safety is further illustrated by its investment in advanced processing technology, which has helped to maintain rigorous quality standards. In 2022, Tangrenshen increased its R&D expenditure by 15%, amounting to RMB 150 million, signifying its dedication to innovation and product improvement.

Furthermore, Tangrenshen has adopted an environmentally friendly approach in its operations. This includes sustainable sourcing of raw materials and a commitment to reducing carbon emissions in line with China's environmental targets. In 2023, the company reported a 12% reduction in its overall carbon footprint compared to the previous year.

In the competitive landscape of the meat processing industry, Tangrenshen's mission statement resonates with its strategic initiatives to enhance product offerings while prioritizing consumer health. The company has also expanded its distribution channels, increasing its presence in both domestic and international markets.

As of the end of 2023, Tangrenshen operates over 300 retail stores across China and exports to more than 10 countries, reflecting its global outreach and commitment to serving diverse markets.

This multifaceted mission highlights not only Tangrenshen's dedication to providing high-quality products but also its role in fostering community development and environmental stewardship.

How Tangrenshen Group Co., Ltd Works

Tangrenshen Group Co., Ltd, a leading player in China’s animal husbandry industry, specializes in the production of animal feed and livestock breeding. The company is known for its comprehensive approach to livestock management, focusing on high-quality feed and genetically superior livestock breeds. This strategy enhances productivity and minimizes operational risks.

In 2022, Tangrenshen reported a total revenue of approximately RMB 10.1 billion, marking a year-on-year increase of 6.5%. The net profit attributable to shareholders reached around RMB 400 million, reflecting a profit margin of about 3.96%.

The company operates through several key segments:

• Animal Feed Production: Tangrenshen is one of the largest animal feed producers in China, with a production capacity of over 2 million tons annually. This segment accounted for approximately 70% of the total revenue in 2022.
• Livestock Breeding: The breeding and sale of livestock, particularly pigs and poultry, contributed significantly to the business. In 2022, the breeding segment generated around RMB 2 billion in revenue.
• Research and Development: Investment in R&D is critical for enhancing product quality. In 2022, R&D expenses were around RMB 150 million, accounting for 1.48% of total revenue.

Tangrenshen Group emphasizes vertical integration in its operations, which allows for greater control over the production process, leading to improved quality and cost management. The company’s feed production plants utilize advanced manufacturing technologies, ensuring consistency and quality across its product lines.

In its financial outlook, Tangrenshen Group aims to expand its market share both domestically and internationally, targeting an annual growth rate of 10% through 2025. The company is also exploring partnerships and acquisitions to enhance its distribution channels and capabilities.

Tangrenshen Group is also committed to sustainability, implementing practices that reduce environmental impact in its production processes. This includes optimizing feed formulations to decrease waste and enhance feed efficiency, a move that is increasingly becoming critical in the agricultural sector.

As of October 2023, Tangrenshen's stock performance has shown a stable trajectory, with shares trading around RMB 15.50, reflecting a 7% increase year-to-date. The company's market capitalization is approximately RMB 6.5 billion.

Through these diverse operations, financial strategies, and commitment to sustainability, Tangrenshen Group Co., Ltd continues to solidify its position in the competitive landscape of the agricultural sector in China.

How Tangrenshen Group Co., Ltd Makes Money

Tangrenshen Group Co., Ltd, a leading producer in the animal feed and food processing sectors, generates revenue primarily through its diverse product lines, including animal feeds, processed meats, and dairy products. The company is known for its focus on the hog breeding industry and livestock feed production.

For the fiscal year 2022, Tangrenshen reported total revenue of approximately RMB 22.6 billion, reflecting a growth of 12.6% from the previous year. This growth can be attributed to increased demand for both animal feed and processed meat products.

The company's revenue streams can be categorized as follows:

• Animal Feed Production
• Processed Meat Sales
• Dairy Product Sales
• Export Sales

The breakdown of Tangrenshen's revenue in 2022 was:

In terms of profitability, Tangrenshen's net profit for 2022 was reported at RMB 1.1 billion, resulting in a net profit margin of approximately 4.9%. This margin is indicative of the competitive pricing and cost management strategies the company utilizes across its different product lines.

Key factors contributing to Tangrenshen's financial performance include:

• Investment in technology for improved feed efficiency.
• Strategic partnerships with local farms to ensure a steady supply chain.
• Expansion into emerging markets, boosting overall sales.
• Adherence to high-quality standards, enhancing brand loyalty among consumers.

Furthermore, Tangrenshen has focused on sustainability practices, which have not only reduced operational costs but also attracted environmentally conscious consumers. As of 2022, the company reported a 3.2% reduction in carbon emissions per unit of production.

In the stock market, Tangrenshen Group is listed on the Shenzhen Stock Exchange, where its stock price has seen fluctuations. As of October 2023, the stock was trading at approximately RMB 22.50 per share, with a market capitalization of around RMB 18 billion. The company's stock has appreciated by 15% year-to-date, reflecting investor confidence in its growth strategy and market position.

Overall, Tangrenshen Group Co., Ltd's ability to generate revenue is rooted in its comprehensive product portfolio, effective operational practices, and strategic market positioning. The company's commitment to innovation and quality continues to drive its profitability in a competitive industry.