Many listed companies have taken
Environmental, Social, and Governance (ESG) criteria as a key point for
improving their business practices. ESG integrates environmental, social, and
governance factors and measures the sustainable development capability and
long-term value of an enterprise. Recently, the international authoritative
index company MSCI raised the ESG rating of Wens from B to BB, becoming the
first listed company in the domestic animal husbandry industry to achieve a BB
rating.
MSCI is one of the most authoritative investor
index companies, and the ESG ratings that it gives have become an important
standard for long-term investment decisions and risk management of major
investment institutions around the world. This jump in Wens's rating reflects
the global capital market's full affirmation and high recognition of the
company's steady operation, risk management, and long-term investment value.
According to Wens, the company has always
adhered to high-level environmental, social, and corporate governance
responsibilities, and the company has integrated ESG into the its strategy and
production operations. Since its overall listing at the end of 2015, Wens
shares have released social responsibility reports for six consecutive years,
disclosing the company's actions, achievements, and future goals in terms of
environment, social responsibility, and corporate governance.
Wens sets sustainable development goals to meet China's Five-Year Plan
In terms of environment, China promises to
achieve a "carbon peak" by 2030 and become "carbon neutral"
by 2060. The environment item in ESG includes carbon emissions and other
energy-saving and emission-reduction indicators. Wens has carried out
operations in rural China for more than 30 years. Knowing that clean water and
mountains are the foundation of sustainable agricultural development, the
company has created a green ecological breeding model, which attaches
importance to the protection and sustainable use of water resources and land
resources, and that actively responds to the national carbon peak and carbon
neutral strategies. Furthermore, the company's model includes a new pattern of
sustainable development that combines planting and breeding. During China's
13th Five-Year Plan period from 2016 to 2020, the company continued to invest
in environmental protection, with a cumulative investment of RMB 3.67 billion.
In terms of society, in order to comply with
the developing trends of modern agriculture, the company has also upgraded its
business model that integrates the company with farming communities, which has
been highly recognized and supported by governments at all levels. In 2020,
Wens in-depth cooperation with local governments will carry out 720 industrial
poverty alleviation projects, with an investment of about RMB 537 million,
which will promote the development of the local modern aquaculture industry.
Wens diversifies production and sets strict standards to reduce risk
In terms of corporate governance, Wens places
great importance on risk prevention, incluing integrity and compliance, audit
supervision, and anti-corruption. The company's main products are commercial
broilers and commercial pigs. Other products are meat ducks, raw milk and dairy
products, eggs, meat pigeons, meat geese, raw meat and its processed meat
products, farming equipment, and veterinary drugs.
In the course of more than 30 years of
development, the company has closely focused on the main industry of chickens
and pigs, insisted on innovation, increased its competitiveness, and established
a leading position in the industry step by step.
On October 28th, the company released a third
quarter performance report. Data show that the company's net loss in the third
quarter was RMB 7.2 billion yuan, and the net loss in the first three quarters
was RMB 9.7 billion yuan. In 2020, Wens annual net profit was RMB 7.4 billion
yuan, and the loss in the first three quarters of 2021 will reach nearly RMB 10
billion. The company's market value currently hovers around 100 billion yuan.
For more information, please check our
resources on China’s
agricultural market.
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