The A-share market has witnessed yet another "sky-high" divorce. Yunnan Shennong Agricultural Industry Group Co., Ltd. (stock abbreviation: Shennong Group) announced after market close on October 12 that controlling shareholder and actual controller He Zuxun has divorced, with both parties signing a "Concerted Action Agreement" to establish a concerted action relationship. According to the announcement, in September 2026, Luo Wanyu filed a lawsuit with the Guandu District People's Court of Kunming for personal reasons, seeking a court order to dissolve her marriage with He Zuxun and proceed with property division. Under the court's auspices, He Zuxun and Luo Wanyu reached a mediation agreement and recently received the "Civil Mediation Statement" ((2026) Yun 0111 Min Chu No. 22012) issued by the Guandu District People's Court of Kunming. The main contents of the mediation statement are as follows: 1. Luo Wanyu and He Zuxun voluntarily dissolve their marriage; 2. Of the 261,016,651 shares of Yunnan Shennong Agricultural Industry Group Co., Ltd. held by He Zuxun, 30%, or 78,304,995 shares, along with all corresponding rights and interests (including but not limited to dividends, bonus shares, capital reserve conversion to share capital, rights issues, and new shares generated from other share changes, etc.), shall belong solely to Luo Wanyu. He Zuxun shall cooperate with Luo Wanyu to complete the transfer registration procedures for the 78,304,995 shares within 30 days from the date of receiving the civil mediation statement.
The announcement shows that He Zuxun and Luo Wanyu signed a concerted action agreement, establishing a concerted action relationship. The main contents of the concerted action agreement are as follows: 1. Luo Wanyu agrees to act in concert with He Zuxun when exercising rights at the company's board of directors and shareholders' meetings (including but not limited to proposal rights and voting rights). 2. Without He Zuxun's consent, Luo Wanyu shall not submit any proposals or temporary proposals to the company's board of directors or shareholders' meeting. 3. Both parties agree that when the company's board of directors votes on any matter, the directors nominated by both parties shall take concerted action and/or ensure that their nominated directors take concerted action to maintain voting consistency. 4. The concerted action arrangement under this agreement shall remain in effect during the period when Luo Wanyu holds company shares (regardless of the shareholding ratio) and He Zuxun is legally recognized as the company's actual controller. 5. Through mutual negotiation and signing of a written supplementary agreement, the duration of the concerted action may be adjusted. 6. If any of the following circumstances occurs during the performance of this agreement, this agreement shall terminate on the earlier of the following: (1) Both parties agree through negotiation and sign a written agreement to rescind or terminate the concerted action agreement; (2) He Zuxun fails to perform any obligation under the court mediation statement; (3) He Zuxun becomes a person with limited civil capacity or no civil capacity; (4) For any reason, Luo Wanyu no longer holds any company shares (including but not limited to transferring all shares, or all held shares being auctioned or disposed of due to judicial enforcement, etc.); (5) For any reason, He Zuxun cannot be recognized as the company's actual controller. 7. Unless otherwise agreed in this agreement, after the signing of this agreement, if either party fails to perform or fully perform the obligations under this agreement or violates any terms of this agreement (including but not limited to violating any representations, warranties, and commitments made under this agreement), it shall constitute a breach. The breaching party shall compensate the non-breaching party for direct economic losses suffered as a result of the breach.
Regarding the impact of the litigation on the company, Shennong Group stated that as of the disclosure date of the announcement, the litigation only involves the shareholder rights and interests of controlling shareholder and actual controller He Zuxun personally in the company, is unrelated to the company's production and operations, and has no material impact on the company's production and operations. According to Tianyancha APP, Shennong Group was established in 1999 and is an enterprise primarily engaged in animal husbandry. In terms of business operations, the main operating data announcement for the breeding business in September 2026 disclosed by Shennong Group on October 12 shows that in September 2026, the company sold 242,800 commercial pigs, a year-on-year increase of 10.31%; commercial pig sales revenue was 344 million yuan, a year-on-year decrease of 4.97%. In the first nine months of 2026, the company sold 2,604,100 commercial pigs, with commercial pig sales revenue of 3.44 billion yuan. In the secondary market, Shennong Group closed up 1.7% at 30.43 yuan per share on October 12. Based on the closing price, the market value of the 78,304,995 shares allocated to Luo Wanyu is nearly 2.383 billion yuan.
Comments