Financial Services Association, January 30 (Reporters Zhang Chenjing and Wang Pingan) In the midst of this downward cycle of the pig cycle, Aonong Biotech (603363.SH) ultimately failed to survive. Following ST Zhengbang (002157.SZ), Aonong Biotech may become the second listed pig company to face the*ST risk. According to tonight's performance forecast, Aonong Biotech lost money for three consecutive years. The company is expected to lose between 3 and 3.6 billion yuan in 2023, and the company's net assets may be negative.

The Financial Services Association reporter learned in an earlier first-line investigation that due to the combination of high costs and low sales prices, profit “bleeding points” have been generated, and the sharp expansion of production scale has “accelerated blood loss.” Under tremendous financial pressure, some of Aonong Biotech's subsidiaries shut down and cleared pig farms to repay debts, while facing bank “drawing loans.” (For details, see today's Financial Services Association report:

“If the equipment is sealed and sows carrying cubs are also sold, the lives of proud farmers are on the line? |In-depth investigation”)

In today's performance forecast, the company said that pig prices will continue to be low in 2023. The average sales price of commercial pigs is 14.38 yuan/kg, down 22.44% from 18.66 yuan/kg in the same period last year, which has had a significant impact on the company's operating capital. In order to ease financial pressure, starting in the second half of the year, the company released pigs early. Fat pigs were underweight. The weight of fat pigs released throughout the year was 97.97 kilograms. It took the initiative to shut down some inefficient pig farms, causing some shutdown losses, leading to huge losses in the pig breeding business.

At the same time, the company calculated inventory price reduction preparations and asset impairment losses for pigs and some idle fixed assets in farming at the end of the period, with a cumulative accrual amount of about 700 million yuan. For excessively loss-making subsidiaries, the company's receivables from excessively loss-making subsidiaries confirm losses of about 300 to 500 million yuan.

According to the announcement on the same day, Aonong Biotech expects net assets attributable to shareholders of listed companies to be -700 million yuan to -1 billion yuan at the end of the fiscal year 2023, and the company may become insolvent. According to the provisions of section 9.3.2 (1) (2) of the Shanghai Stock Exchange Stock Listing Rules”, “the net assets at the end of the audited fiscal year are negative, or the net assets at the end of the most recent fiscal year after retroactive restatement”, the company's shares may be subject to a delisting risk warning by the Shanghai Stock Exchange.