China Vanke Co.,Ltd. is continuing to scale back its once-diversified business portfolio. On the evening of April 29, the company released its first-quarter 2026 financial results. During the reporting period, revenue reached 28.93 billion yuan, a decrease of 23.9% year-over-year. The net loss attributable to shareholders of the listed company was 5.95 billion yuan. The overall gross profit margin was 9.1%, an improvement of 3.0 percentage points compared to the same period last year.
That same evening, China Vanke also announced its intention to list for sale approximately 99.413% of the equity in Huanshan Group, which it holds indirectly. The minimum listing price for the asset is 3.29 billion yuan. If the transaction is completed at this price, it is expected to reduce the company's net profit by approximately 948 million yuan.
Public information shows that Huanshan Group Co., Ltd. was established in 2004 and is headquartered in Qingdao, Shandong Province. It is an agricultural enterprise primarily engaged in pig farming, feed production, and egg and poultry farming.
Currently a wholly-owned subsidiary of China Vanke Group, Huanshan Group serves as one of the core operational platforms for Vanke's food business division. Utilizing a "company + family farm" breeding model, Huanshan has established breeding bases in Shandong, Henan, Sichuan, and other regions, forming an integrated industrial chain encompassing feed processing, pig farming, poultry farming, and food sales. China Vanke completed the full acquisition of Huanshan Group in 2022.
As of 2022, Huanshan Group's annual pig slaughter volume exceeded 1.58 million head. The company is actively promoting digital transformation by introducing intelligent breeding management platforms to enhance operational efficiency.
China Vanke stated that this business has low relevance to its core operations. In accordance with the company's strategic plan to "focus on the main business and orderly exit non-core businesses," Huanshan Group has been included in the list of non-core assets slated for divestment.
The development of the breeding business requires significant capital investment, but the company is currently facing liquidity pressures and finds it difficult to support this business's growth. Concurrently, this transaction is expected to contribute positively to the company's cash flow. Considering these factors, the company has made a prudent decision to sell the asset based on its development strategy and actual circumstances.
A report from an appraisal agency indicates that the book value of the shareholders' equity attributable to the parent company in Huanshan Group's consolidated financial statements is 2.6765407 billion yuan, with an appraisal value of 3.24 billion yuan. The valuation type is market value, determined using the market approach methodology.
Regarding financial data, Huanshan Group's audited operating revenue for 2025 was 5.756 billion yuan, with operating costs of 4.962 billion yuan and operating profit of 469 million yuan. Net cash flow from operating activities was 275 million yuan. Total assets at the period-end were 5.147 billion yuan, total liabilities were 2.468 billion yuan, and net assets attributable to the parent company were 2.677 billion yuan.
China Vanke stated that the ownership rights of the asset intended for transfer are clear, with no mortgages, pledges, or any other encumbrances. There are no significant disputes or major litigation and arbitration matters related to the asset, nor any judicial measures such as seizures or freezes, or any other circumstances that would hinder the transfer of ownership.
Furthermore, this transaction does not constitute a major asset restructuring or a back-door listing as defined by the "Administrative Measures for Major Asset Restructuring of Listed Companies." As the transaction involves a public listing, the counterparty remains uncertain. It is currently undetermined whether the transaction will involve connected parties. If the final listing outcome results in a connected transaction, the company will promptly fulfill the necessary review procedures and information disclosure obligations in accordance with the "Listing Rules of the Shenzhen Stock Exchange" and the company's articles of association.
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