On the evening of September 23, Shennong Group (SH: 605296, share price 33.60 yuan, market cap 17.68 billion yuan) announced that its controlling shareholder and actual controller, He Zuxun, is involved in a divorce dispute lawsuit. The divorce case filed by Luo Wanyu against He Zuxun has been officially accepted by the Kunming Guandu District People's Court, with the plaintiff requesting the dissolution of the marriage and division of property.
He Zuxun directly holds 261 million shares of the company, representing 49.60% of the total share capital. Based on the closing price on September 23, the market value of his shares is approximately 8.77 billion yuan. Currently, both parties have agreed to proceed with mediation under the court's guidance first.
Shennong Group is currently under operational pressure, having posted a net loss attributable to parent shareholders of 809 million yuan in the first half of 2026. Now, with nearly half of the company's equity held by the actual controller facing potential division, this pig farming enterprise is facing additional uncertainty.
Divorce lawsuit against actual controller risks splitting nearly half of company shares
According to Shennong Group's announcement on September 23, the company recently received notice from He Zuxun, its controlling shareholder and actual controller, that the divorce dispute lawsuit filed by Luo Wanyu against him has been docketed by the Kunming Guandu District People's Court. The plaintiff is requesting the court to dissolve the marriage with He Zuxun and divide the property. As of the announcement date, both parties have agreed to first proceed with mediation under the court's auspices.
The announcement shows that in this lawsuit, He Zuxun, as the defendant, currently directly holds 261 million shares of the company, accounting for 49.60% of the total share capital. The plaintiff, Luo Wanyu, currently holds zero shares in the company. The case has been accepted but has not yet gone to trial. Since the litigation claims have not been heard in court, it is currently impossible to determine the amount involved in this lawsuit. Based on the closing price on September 23, the market value of shares held by He Zuxun is approximately 8.77 billion yuan.
Shennong Group stated in its announcement that, as of the disclosure date, this lawsuit only involves the actual controller's personal shareholder rights in the company and is unrelated to the company's production and operations, with no material impact on the company's business. Given that the case has not yet gone to trial, the final outcome of this lawsuit cannot be determined. The company will continue to monitor the progress of the case and its impact on the company, and will disclose information in a timely manner in accordance with legal and regulatory requirements. Investors are advised to pay attention to relevant risks.
Company under operational pressure with first-half net loss exceeding 800 million yuan
Shennong Group is a full-industry-chain enterprise integrating feed processing, pig breeding, pig slaughtering, and deep processing of meat products, registered in Kunming, Yunnan Province. In terms of feed business, the company has completed and launched six feed production bases in Yunnan and Guangxi, bringing total annual capacity to 1.6 million tons, which can fully meet the feed demand for its own pig farming operations. For pig breeding, the company has been focusing on five key areas — breeding stock genetics, feed supply, husbandry management, intelligent upgrades, and cost control — to continuously reduce the full cost of pig farming, optimizing the cost to 11.9 yuan per kilogram in June 2026.
However, significant fluctuations in pig market prices have had a notable impact on the company's operating performance. Shennong Group's 2026 semi-annual report shows that in the first half of this year, the company achieved operating revenue of 2.489 billion yuan, down 11.02% year-on-year. The net profit attributable to listed company shareholders was a loss of 809 million yuan, compared with a profit of 388 million yuan in the same period last year. Net cash flow from operating activities was negative 375 million yuan, versus 557 million yuan in the year-ago period. The company explained that the decline in operating revenue and operating cash flow was mainly related to lower pig selling prices, while the rise in operating costs was primarily due to increased pig sales volume.
Recently, high-profile "sky-high divorce" cases involving actual controllers of A-share listed companies have been frequent. On the evening of July 17, Qiangyi Co (SH: 688809) announced that its actual controller and chairman Zhou Ming had terminated his marriage with Jiang Chunlan. Zhou Ming planned to transfer a total of 14.0691 million shares he held directly and indirectly (10.86% of total share capital) to Jiang Chunlan. Based on the closing price on the trading day before the announcement, the corresponding market value of those shares was approximately 5.95 billion yuan. The two parties also signed a ten-year Acting in Concert Agreement, and the actual control rights remained unchanged.
On the evening of July 24, Lancy Co (SZ: 002612) announced that its controlling shareholder Shen Dongri had terminated his marriage with Weng Jie. Shen Dongri transferred 80.4827 million shares he directly held (18.19% of total share capital) to Weng Jie, which was valued at approximately 922 million yuan at the time. On the evening of September 16, Electronic Soul Network (SH: 603258) announced that its actual controllers Hu Jianping and Chen Fang had completed divorce procedures on September 15, with arrangements made for share splitting. According to the divorce agreement, Hu Jianping transferred 7.2829 million shares (3.00% of total share capital) to Chen Fang. Based on the closing price on September 16, the market value was approximately 95.1875 million yuan.
The final outcome of Shennong Group's lawsuit remains undetermined, and the company will continue to disclose progress. Investors should be mindful of the associated risks.