Shulou(Shulou.com)11/24 Report--

CTOnews.com June 12 news, NetEase's agricultural brand Weiyang recently suffered an equity freeze crisis, Weiyang affiliated company Zhejiang Weiyang Technology Co., Ltd. added two pieces of equity freeze information, involving 120 million yuan. The executed enterprise is the core enterprise of Weiyang, which is mainly responsible for the breeding of NetEase black pigs.

NetEase's pig-raising business began in 2009 and was personally promoted by Ding Lei, founder of NetEase, according to Sina Finance. After years of research and development and investment, Weiyang launched its first batch of black pork products at the end of 2016 and completed a round of financing of 160 million yuan in 2017. Weiyang has created a whole set of models from breeding to sales, including standardized farming methods, three-dimensional sales channels, green sewage system, interesting marketing methods and so on.

Weiyang focuses on the high-end market, and the unit price of pork is much higher than the market level, which also means that Weiyang needs to meet the needs of consumers in terms of health and taste. At the same time, Weiyang is also facing the problems of market share and cost control. CTOnews.com noted that Weiyang's output is far lower than that of the industry's leading companies, with only a few hundred thousand a year, while listed pork companies have a production capacity of tens of millions of heads every year. Therefore, Weiyang needs to replicate its own model across the country and increase its production capacity and scale.

However, this is not easy. According to reports, NetEase Weiyang has signed contracts with a number of places to build aquaculture projects, but so far has not landed. In addition, NetEase Weiyang has also experienced senior management changes. After the departure of Ni Jinde, the former CEO, he was replaced by Han Jitao, the former vice president of New Hope. At present, NetEase Weiyang has not only two farms in Anji and Gao'an, but also two subsidiaries in Shaoxing and Hangzhou.

NetEase pig business is Ding Lei's exploration and attempt on Internet agriculture, and it is also a part of NetEase's diversified development. However, it remains to be seen whether NetEase can persevere and succeed in this highly competitive, risky and fast-changing field.

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