Apollo News reported that Zhengbang Technology, one of China’s leading pig breeding companies, is falling into a deep debt crisis, with a debt level of up to 97.03% of the company’s net assets.
Within the last 15 months, Zhengbang Technology has lost about $3.2 billion. From June 9 to 10, Zhengbang Technology’s share price fell 11.18%.
In addition, Zhengbang Technology is still facing nearly $3 billion in interest liabilities at the end of Q1 2022.
As of the June 10th close of stock trading, Zhengbang’s market value was $2.6 billion. A very steep decline from its peak in 2020 when the company’s market value was $27 billion.
In 2020, the founder of Zhengbang Technology, Lin Yinsun, became the wealthiest person in Jiangxi province, with a fortune of $4.8 billion. In 2022, Lin Yinsun’s net worth had dropped to $3.7 billion.
Zengbang’s business downturn comes amid many business sectors in China falling into crisis.
According to the Economic Times’s report dated June 19, JD.com, China’s leading one-stop e-commerce platform, announced that in the “618” online shopping festival this year, the company’s annual growth rate hit a new low of 10.3%, sharply down compared to 2021 with a growth of 27.7%.
JD.com’s report shows that the Chinese economy continues to decline sharply due to the “Zero-Covid” anti-epidemic policy, which is seen as extreme.
Reuters reported on May 16 that China’s retail and factory activity dropped sharply in April because of Covid-19 lockdown measures that have been applied to major cities for months.
These lockdown measures have hurt production and consumption and heightened risks for those parts of the global economy heavily dependent on China.