On the evening of September 23, Yunnan Shennong Agricultural Industry Group Co.,Ltd. (SH: 605296, share price 33.60 yuan, market value 17.681 billion yuan) announced that its controlling shareholder and actual controller, He Zuxun, is involved in a divorce dispute lawsuit. The case, filed by Luo Wanyu against He Zuxun, has been accepted by the Guandu District People's Court in Kunming, 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 He Zuxun's shares is approximately 8.77 billion yuan. The two parties have agreed to first undergo mediation under the court's auspices.
It has been noted that Yunnan Shennong Agricultural Industry Group Co.,Ltd. is currently under operational pressure, posting a net loss attributable to parent shareholders of 809 million yuan in the first half of 2026. Now, the risk of dividing nearly half of the company's equity held by the actual controller adds further uncertainty to this pig farming enterprise.
According to the September 23 announcement from Yunnan Shennong Agricultural Industry Group Co.,Ltd., the company recently received notice from He Zuxun that the divorce lawsuit filed by Luo Wanyu has been accepted by the Guandu District People's Court in Kunming. The plaintiff requests the dissolution of the marital relationship with He Zuxun and the division of property. As of the announcement date, both parties have agreed to proceed with mediation under the court's guidance first.
The announcement states that in this lawsuit, He Zuxun serves as the defendant and currently directly holds 261 million shares, accounting for 49.60% of the company's 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. Given that the hearing has not taken place, the amount involved in the lawsuit cannot yet be determined. Based on the September 23 closing price, the market value of He Zuxun's shares is approximately 8.77 billion yuan.
Yunnan Shennong Agricultural Industry Group Co.,Ltd. stated in the announcement that, as of the disclosure date, this litigation only involves the personal shareholder equity of the controlling shareholder and actual controller, He Zuxun, and is unrelated to the company's production and operations, with no significant impact on the company's business. Since the case has not yet gone to trial, the final outcome cannot be determined at this time. The company will continue to monitor the progress of the litigation and its impact on the company, and will disclose information in a timely manner in accordance with laws and regulations. Investors are advised to pay attention to investment risks.
Yunnan Shennong Agricultural Industry Group Co.,Ltd. operates as a full value chain enterprise integrating feed processing, pig farming, pig slaughtering, and deep processing of meat products. In its feed business, the company has completed and operationalized six feed production bases in Yunnan and Guangxi, raising total annual capacity to 1.6 million tons, which fully meets the feed demand for its own pig farming operations. In its pig farming business, the company focuses on five key areas: breeding stock genetics, feed supply, husbandry management, smart technology upgrades, and cost control, continuously reducing the full cost of pig farming, which was optimized to 11.9 yuan per kilogram in June 2026.
However, significant fluctuations in pig market prices have a notable impact on the company's operating performance. The semi-annual report of Yunnan Shennong Agricultural Industry Group Co.,Ltd. for 2026 shows that in the first half of the year, the company achieved operating revenue of 2.489 billion yuan, a year-on-year decrease of 11.02%; net profit attributable to listed company shareholders was a loss of 809 million yuan, compared to a profit of 388 million yuan in the same period last year; net cash flow from operating activities was -375 million yuan, compared to 557 million yuan in the same period last year. The company explained that the decline in operating revenue and operating cash flow was mainly related to lower pig selling prices, while the increase in operating costs was mainly due to higher pig sales volume.
Recently, high-value divorce cases among actual controllers of A-share listed companies have become increasingly frequent. On the evening of July 17, Qiangyi Materials (SH: 688809) announced that actual controller and chairman Zhou Ming had dissolved his marital relationship with Jiang Chunlan. Zhou Ming planned to transfer a total of 14.0691 million shares (10.86% of total share capital) directly and indirectly held by him to Jiang Chunlan. Based on the closing price on the trading day before the announcement, the corresponding market value of these shares was approximately 5.95 billion yuan. The two parties also signed a ten-year "Concerted Action Agreement," and the actual control rights remained unchanged.
On the evening of July 24, Lancy Co., Ltd. (SZ: 002612) announced that controlling shareholder Shen Dongri had dissolved his marital relationship with Weng Jie, with Shen Dongri transferring 80.4827 million shares directly held by him (18.19% of total share capital) to Weng Jie, valued at approximately 922 million yuan at that time.
On the evening of September 16, Dianhu Network (SH: 603258) announced that actual controllers Hu Jianping and Chen Fang had completed the dissolution of their marriage on September 15 and made arrangements for share division. According to their divorce agreement, Hu Jianping transferred 7.2829 million shares (3.00% of total share capital) to Chen Fang, with a market value of approximately 95.1875 million yuan calculated at the September 16 closing price.
The final outcome of the Yunnan Shennong Agricultural Industry Group Co.,Ltd. lawsuit remains uncertain, and the company will continue to disclose progress. Investors should be mindful of the associated risks.
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