Shineway (Shuanghui)

Printable pdf version:Profile – Shuanghui (Shineway)

Chinese Agribusiness Profiles: Shineway Group                                                           河南省漯河市双汇实业集团有限责任公司                                                                       Prepared by Derrick Yee   (with Mindi Schneider)                                                                                                November 2012

Company Vitals

Shuanghui (Shineway) Group is a publicly-traded firm headquartered in Luohe City, Henan Province. The company is involved in the processing, production, and sale of meat products, along with other subsidiaries that include (see Table 1):

  • Information Technology
  • Shuanghui Pharmaceutical
  • Shanghui Spices
  • Biological Engineering

Shuanghui has over 60,000 employees and 10 major subsidiaries that operate both domestically in China and export to overseas markets.  The group has factories set up in 12 different provinces and cities in China, and has branches in counties such as Japan, Singapore, the Philippines, and Korea with import revenue of USD 100 million per year. Shineway implemented a group management and control model to organize itself, having invested over 4 billion RMB to import advanced technologies from foreign countries. The company is also involved in many joint ventures with foreign companies (see Table 2).

Shuanghui Group provides both low and high temperature meat and has an industry chain that includes: feed processing, cultivation, slaughtering, meat processing, chemical packaging, color printing, commodity distribution, and chain stores. In 2011, the Shineway Group had assets of 7.8 Billion RMB, an operating income of 37.6 Billion RMB, and profit of 565 million RMB.

Also known as Shineway Group, Henan Shuanghai Investment Development Co., Ltd., was listed on the Shenzhen Stock Exchange starting on December 10, 1998 (Stock Code No. 000895) and holds a spot at number 125 on the list of the Top 500 Enterprises of China.

  • Shuanghui is China’s leading pork producer with an annual slaughter capacity of over 30 million pigs.
  • The company processes 30 million pigs, 300 thousand cattle, 600 thousand tons of chicken, 50 thousand tons of egg, and 50 thousand tons of soy protein each year.
  • Shuanghui had a total meat output of 3 million tons in 2011.
  • The enterprise passed the ISO9000, ISO14001, HACCP (Hazard Analysis and Critical Control Point) certification in terms of food safety regulations.
  • Fortune named Shuanghui the 96th largest Chinese domestic company in terms of revenue.

Company History

In 1958, the Shuanghui Investment & Development Co. roots began when it was first built in Luohe as a way to process and store perishables. Eleven years later, during the Cultural Revolution, the government added a meat processing component to the company. It wasn’t until January 1994 that the current official Shineway group was formed as a joint venture with Chinachem. In 1998, Shuanghui was successfully listed on the Shenzhen Stock Exchange with 50 million shares, and the company started to export meat products to Japan. The Shanghui company then began to explore business opportunities with several Japanese companies, and form subsidiaries such as Henan Livestock East Ltd. to produce pork in huge quantities.  The group then joined many other ventures to maximize its production and market growth, including in 2006 when the company entered a partnership with Goldman Sachs as part of the state ownership reform. Previously a state-owned enterprise, it is now a private firm, but retains strong ties to the central government through its leadership structure.

Company Leadership

A corporate Board of Directors and chief officers govern Shuanghui Group. The team includes chairman Zhang Junjie, vice chairman and general manager Shi Haitian, general manager Qi Yongyao, and President and CEO Wang Long. Wang Long was first appointed the director of the Luohe United Meat Processing Plant in 1984 in which he advanced meat-processing technologies to improve efficiency, generated new jobs, and stabilized the regional economy. When the company was first established in 1994, he was named the first chairman of the company[i].

The Whole Process

1. Feed Processing: The Henan Shanghui Industry Group Co., Ltd feed mill feed production enterprise is registered as “qualified production.” It has a total investment of 5700 million with advanced level of automation and an imported feed production line from Italy.

2. Breeding: With foreign joint ventures and investments of 2 billion RMB, Shuanghui has multiple breeding farms around China to raise pigs. The equipment is used from abroad from countries like Denmark. The group hopes to grow production to 50 million heads of pigs.

3. Slaughtering: The daily slaughter capacity is about 5,000-10,000 heads, and the technology and equipment meet international standards. The company took the lead from Europe to introduce cold meat production line and distribution.

4. Meat Processing: In accordance with the HACCP certification standards, the Shuanghui Group has a total of 13 high-temperature processing plants. Equipment is imported from the United States, Japan, and Germany to use computer monitoring.

5. Chemical Processing: One of the Shuanghui Group’s six divisions, the Chemical Packaging Division exports to more than 10 countries and regions like Vietnam or Indonesia with plastic processing, paper processing, printing. Sales revenue from this division was 4.5 billion RMB in 2011.

6. Logistics: A subsidiary of Shineway Group, Shuanghui Logistics is responsible for professional refrigeration and transportation. It has a registered capital of 70 million RMB, and over 200,000 tons of cold storage and normal temperature warehouses.

7. Commercial Chain: The Shuanghui chain business has assets of 250 million RMB, and over 400 stores around China. The stores sell groceries, such as low and high temperature meat, grain, egg, milk, vegetables, etc.

Related News

Shuanghui has been at the center of controversy since 2011 because of a feed additive scandal around the “lean meat powder,” Clenbuterol. This additive induces pigs to put on lean meat instead of fatty meat, which worth more on the market.

Goldman Sachs sold half of its 10% holdings in Shineway Group to CHD Investments, a Chinese private equity fund, after buying shares in 2006. Goldman Sachs was to profit five times its investment, as other foreign investors, such as Singapore’s Temasek Holdings, have bought shares in the Shineway Group.

Looking Ahead

In the year of 2011-2013, the enterprise looks to be the largest meat industry in the world. By the end of 2015, the company plans to have sales income of over 100 billion RMB and produce 8 million tons of meat products.

Table 1.  Shuanghui (Shineway) Group Family of Companies

*There are about 10 subsidiaries, and below are the list of the ones related to the enterprise’s meat industry. Information is from the Shuanghui Website (Chinese version).

Company Business Operations Links
Shuanghui Information Technology The aim is to transform the meat industry through comprehensive research. The company has software and information technology branches to create the enterprises’ “digital nervous system” to ensure food safety and increase business. Chinese
Shuanghui Pharmaceutical Also known as Chincachem, the Shuanghui Industrial Group Co. that is comprised of biochemistry laboratories that produce drugs, tablets, powders, and health foods. Chinese
Shuanghui Spices The subsidiary is aimed at providing diversity in taste through spices. The company relies heavily on research and development. Chinese
Biological Engineering The Shuanghui Biological Engineering Technology Co. Ltd uses Japanese technology to extract from bones and other developments to provide consumers with condiments. Chinese

Table 2.  Shineway (Shuanghui) Group: Select International Partnerships

*This list only contains some of the partnerships between companies

Partner Location Relationship Links
DuPont United States Formed a joint venture with Shuanghui to form a soy bean production and processing company. Top 100 Companies in China
Goldman Sachs United States Strategic investor in Henan Shuanghui Group in which they bought a 10% share in 2006, but sold half of those shares in 2009 to earn five times its investment to CDH, a private equity fund. China Daily
Japanese Companies Japan Henan Livestock East Ltd. in a joint venture that allowed the company to increase pork production starting in April 2002. Top 100 Companies in China
Temasek Singapore A majorshare holder in Shuanghui Group that owns shares like Goldman Sachs or Aegon-Industrial Fund Management Co. Reuters
Denmark SPF Core Field Landrace Denmark Imported equipment to raise the pigs for the company. Chinese

[i] Zhang, Wenxian and Alon, Ilan. (2011). A Guide to the Top 100 Companies in China. World Scientific Publishing Company.

5 Responses to Shineway (Shuanghui)

  1. Pingback: Smithfield to be Bought by a Chinese Company | NonFictionLiving

  2. arthur jean-louis says:

    In Tanzania there is no soy meat factory. Im looking for joint venture with your company

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