In 2019, the Raindrops Group’s Shangqiu meat processing plant was forcibly demolished by the local government due to the failure to reach a relocation agreement. In 2022, the two parties confirmed a compensation amount of 150 million yuan (RMB), but to date, the company has only received 5 million yuan in three installments. After this matter was exposed, the local Housing and Construction Bureau responded on April 27th, stating that they are “working on finding a solution,” but no concrete plan has been implemented, leading to widespread questioning.
According to a report by Dafeng News on April 27th, a person surnamed Zhu, a relevant person in charge of the Raindrops Holdings Group, revealed to the media that “the Raindrops Group’s meat processing plant in Shangqiu has been forcibly demolished for 6 years. In 2022, before the debt restructuring, the group confirmed a 150 million yuan compensation with the relevant departments of Shangqiu City, but only 5 million yuan has been received so far.”
On July 9, 2008, the State-Owned Assets Supervision and Administration Commission of Shangqiu City, Henan Province, signed a cooperation agreement with Jiangsu Raindrops Food Industry Group Co., Ltd. to attract its affiliated enterprises to invest in and develop the meat industry in Shangqiu City. On July 10, the Shangqiu municipal government signed a “Strategic Restructuring Agreement” with the Raindrops Group, transferring all the production and operational land of Fuyuan Food Co., Ltd., including production areas of about 203 mu, buildings, structures, and other attached properties, machinery and equipment, power supply, and other facilities, for 20 million yuan.
After the restructuring agreement was signed, the Raindrops Group invested heavily in upgrading the plant through technological improvements. In November 2010, the Shangqiu Tianhui Meat Processing Co., Ltd. began operations.
In March 2018, the Liangyuan District Government of Shangqiu City made a “Requisition Decision,” stating that approximately 2925.8 square meters of the office building of Tianhui Meat Processing Company would be requisitioned for the transformation of the Houzhuang community’s shed area.
Zhu stated, “In June 2019, without reaching a relocation agreement or receiving compensation, the Liangyuan District Government forcibly demolished the plant.”
On April 22, 2021, a “Notice” by the Liangyuan District Government indicated that the houses of Tianhui Meat Processing Company within the Houzhuang community’s shed area project had been requisitioned. On January 19, 2022, the Liangyuan District Municipal Construction Bureau, Tianhui Meat Processing Company, and the Liangyuan District Changzheng Street Office signed 27 “House Requisition Settlement Compensation Agreements,” with a total compensation amounting to 150 million yuan.
By the end of 2023, the Raindrops Group wrote to the Liangyuan District Government, hoping that the relevant departments would return the compensation to help the company through difficult times.
“After the relocation of the plant, the government solved expenses such as personnel placement fees and equipment relocation costs, but the 150 million yuan compensation has never been resolved,” Zhu said. In January 2023, the Changzheng Street Office Shed Reform Command transferred 2 million yuan of requisition compensation; in January 2025, transferred 1 million yuan; on February 14, 2026, transferred 2 million yuan. “So far, we have only received 5 million yuan in compensation.”
The report stated that communication records between a Raindrops Group official and another responsible person from the Liangyuan District Government showed that the government official stated that all debts would be resolved by the end of 2026 and would be settled in full soon, saying, “Don’t fuss about the amounts, it’s just a matter of more now or more later.”
On April 27th, a journalist from the media contacted a responsible person from the Liangyuan District Housing and Construction Bureau, who stated that the matter of relocation is being handled by the Changzheng Street Office in coordination with the Raindrops Group, with a remaining amount of over 140 million yuan, and they have been working on finding a solution.
This incident quickly became a hot topic on Weibo.
Netizens expressed their thoughts, “A compensation agreement of 150 million yuan, delayed for six years, with only 5 million yuan paid so far, the substantial compensation still not in place. Faced with public doubt, the local Housing and Construction Bureau merely says ‘working on finding a solution’ to brush off the issue. Swift in demolishing, dragging in compensating, the written promise now seems like a sham.”
“Demolish first, then sign the agreement, signing the agreement only to delay compensation long-term, the entire process completely violates the basic requirements of lawful appropriation. The legally owned assets of the company were forcibly destroyed, they should receive timely and sufficient compensation, yet now they have only received a fraction, multiple letters to demand payment have been ignored, undoubtedly a disregard for the company’s lawful rights.”
“From the demolition of the plant in 2019, to the signing of the 150 million yuan compensation agreement in 2022, and now only 5 million yuan received in 2026, in nearly seven years of waiting, ‘finding a solution’ has become an unresolved excuse, turning the creation of a good business environment into a mockery.”
“Originally thought the land after relocation could be sold at a good price. Make a big profit. Unexpectedly, there was a sudden change. The land couldn’t be sold. With no money for compensation, the land became worthless. Anyway, no one takes responsibility for the loss!” “Back then, it was the peak of the real estate market, thinking that after demolition, the land could be sold at a high price, who knew the real estate market would crash.”
“So it was Raindrops, such a well-known brand, still could be treated like this?” “Even for a large enterprise like Raindrops, protecting their rights is so difficult, let alone ordinary people. There is a residential area being demolished alongside Raindrops, there’s no way to protect their rights!” “I have some doubts, if it wasn’t for the developed internet now, would they have ignored us?” “No money, why demolish then? Can’t you at least have some dignity? Should be put on a credit blacklist.” “Speak out: who is the biggest defaulter?”
Public records show that the Raindrops Group is a leading Chinese meat processing enterprise. Since 2015, the Raindrops Group has faced successive blows such as financial debt defaults, litigation arbitrations, asset seizures, and freezes, leading to the enterprise’s development falling into distress.