Beyond the “CITIC Group” and “Sinochem Group,” another national‑level player—the “SDIC Group”—has now taken shape in China’s seed industry landscape.

As the “national team” of the seed industry, the closely watched SDIC Seed Industry has been making frequent moves. Following its announcement on November 6 that it had partnered with a local government to invest RMB 500 million in establishing SDIC (Zhangye) Jinzhong Technology Co., Ltd. at the Zhangye Corn Seed Production Base, Fengle Seed Industry issued an announcement on November 13 stating that it plans to issue shares to its controlling shareholder, SDIC Seed Industry, raising no more than RMB 1.089 billion at an offering price of RMB 5.91 per share, corresponding to 184 million shares.

SDIC Seed Industry holds a 38.46% stake in Fengle Seed Industry.

On April 26 this year, SDIC Seed Industry invested RMB 1.094 billion to acquire a controlling stake in Fengle Seed Industry, becoming its controlling shareholder. Following the full subscription of Fengle Seed Industry’s newly issued shares, SDIC Seed Industry’s shareholding increased from 20% to 38.46%, underscoring its unwavering commitment and confidence in the continued development of the seed industry and its ambition to become a domestic leader in this sector.

Fengle Seed Industry announced that, through the issuance of shares to SDIC Seed Industry, the company will further strengthen its financial position, optimize its capital structure, and enhance its risk resilience, which will be of great significance for Fengle Seed Industry’s high-quality development and the continued advancement of scientific and technological innovation.

Guotou Seed Industry was established on September 26, 2023, and is a wholly owned subsidiary of the SDIC Group. On December 6, 2023, Hefei JianTou signed a Share Transfer Agreement with Guotou Seed Industry. In April this year, Fengle Seed Industry announced that the transaction had been completed, making Guotou Seed Industry the company’s controlling shareholder.

Recently, during a visit by institutional investors, the company stated: “The company’s development strategy is an integral part of SDIC Group’s seed industry development strategy. We are engaging in extensive market‑driven business collaborations with SDIC‑affiliated seed‑industry biotechnology companies, leveraging their biotechnological resources to enhance the traits of our existing varieties and develop new, competitively viable cultivars.”

The “SDIC-affiliated” seed industry has taken shape.

In China’s seed industry landscape, the “CITIC Group”‑affiliated players, led by Longping High-Tech, and the “Sinochem Group”‑affiliated players, represented by Syngenta, currently constitute the two most prominent “national teams.” Following its successful acquisition of a controlling stake in Fengle Seed this year, it is foreseeable that the “SDIC Group” will emerge as another key member of the seed industry’s “national team.”

In fact, SDIC Group’s strategic positioning in the seed industry has largely taken shape.

As early as September 26, 2023, the state-owned “national team” — China Development & Investment Corporation (CDIC) — made a strategic move in Sanya, Hainan: CDIC Seed Technology Co., Ltd. (CDIC Seed) completed its registration in the Yanzhou Bay Science and Technology City.

Public records indicate that the legal representative is Wang Weidong, with a registered capital of RMB 4 billion. The company’s business scope encompasses the production of seeds for major crops, the production of genetically modified crop seeds, and the marketing of crop seeds, among other activities. According to publicly available information, SDIC Seed Industry is a wholly owned subsidiary of SDIC Group and serves as the group’s investment, management, and operational platform for the bio‑breeding industry.

SDIC Group is a key state-owned enterprise directly managed by the central government and one of China’s earliest comprehensive state‑owned development and investment companies. Established in 1995, it currently owns 17 wholly owned and controlling subsidiaries and 477 wholly owned or controlling investee enterprises, including nine listed companies in which it holds a controlling stake, such as SDIC Power, SDIC Capital, Zhongcheng Shares, and SDIC Zhonglu. As of the end of 2023, SDIC Group’s total assets amounted to RMB 838.5 billion, with operating revenue of RMB 212.6 billion and total profit of RMB 25.2 billion for the year.

In recent years, SDIC Group, through SDIC Chuangyi, has made multiple strategic investments in the bio‑breeding sector, including strategic stakes in Dabeinong Bio, Hangzhou Ruifeng, Liangyuan Bio, and Longping Bio; controlling interests in Fengle Seed Industry, Guofeng Bio, and Guorui Bio; thereby achieving full coverage of China’s leading bio‑breeding enterprises.

SDIC Chuangyi Industrial Fund Management Co., Ltd. (hereinafter referred to as “SDIC Chuangyi”) is a wholly owned subsidiary of SDIC Group. It currently manages, on an entrusted basis, central state‑owned enterprise funds, industrial development funds for underdeveloped regions, and impact‑oriented seed industry funds, with total assets under management amounting to RMB 48.363 billion, making it a well‑known impact investment institution in China.

Overall, SDIC Group’s strategic positioning in the seed industry has largely taken shape. Following its acquisition of a controlling stake in Fengle Seed Industry, bolstered by robust state‑owned capital and underpinned by a well‑developed biotechnology breeding platform and Fengle Seed Industry’s established foothold, the “SDIC‑affiliated” entities—led by SDIC Seed Industry—are increasingly demonstrating strong competitiveness in the seed market.

Source: WeChat Official Account: Aige Agriculture