Zhengye Biotechnology Holding Limited Announces Financial Results for the First Six Months of Fiscal Year 2026
JILIN, China, Nov. 12, 2026 /PRNewswire/ -- Zhengye Biotechnology Holding Limited (Nasdaq: ZYBT) (the "Company" or "Zhengye"), a veterinary vaccine manufacturer that encompasses research, development, manufacturing, and sales of veterinary vaccines, with a focus on livestock vaccines in China, today announced its unaudited financial results for the six months ended June 30, 2026.
Mr. Songlin Song, co-chief executive officer of Zhengye, remarked, "During the first half of fiscal year 2026, we continued to enhance profitability through disciplined cost management and operational efficiency. Despite the decline in net revenue and gross profit, we are encouraged by the improvement in our gross profit margin to 32.9%, an increase of 1.8 percentage points from 31.1% in the same period last year, primarily reflecting improved margins in our other vaccines segment. Total operating expenses decreased by 22.2% year over year to RMB37.6 million, while our operating loss narrowed by 27.9%. Our net loss also decreased by 13.3% to RMB22.2 million from RMB25.6 million in the same period last year. Looking ahead, we aim to continue prioritizing financial discipline, optimizing our cost structure, and allocating resources efficiently to support sustainable growth and long-term value creation."
Mr. Aiden Han, co-chief executive officer of Zhengye, added, "We remain focused on advancing our long-term growth strategy through the development of high-demand vaccines and expansion into new markets. Building on our existing product development initiatives, we aim to further expand our presence in the household animal vaccine industry, including through the development of vaccines for cats and dogs. On the international front, with our products already exported to Vietnam, Pakistan, and Egypt, we intend to explore additional opportunities in Africa, Central Asia, and West Asia. We also aim to strengthen our ability to attract, incentivize, and retain talented professionals to support our long-term development. We believe these strategic initiatives, together with our established industry experience and technological capabilities, will enhance our competitiveness and support Zhengye's long-term growth."
First Six Months of Fiscal Year 2026 Financial Summary
- Net revenue was RMB50.9 million (US$7.5 million) for the six months ended June 30, 2026, compared to RMB62.3 million for the same period last year.
- Gross profit was RMB16.7 million (US$2.5 million) for the six months ended June 30, 2026, compared to RMB19.4 million for the same period last year.
- Gross profit margin was 32.9% for the six months ended June 30, 2026, an increase of 1.8 percentage points from 31.1% for the same period last year.
- Net loss was RMB22.2 million (US$3.3 million) for the six months ended June 30, 2026, compared to RMB25.6 million for the same period last year.
- Basic and diluted loss per share was RMB0.40 (US$0.06) for the six months ended June 30, 2026, compared to RMB0.46 for the same period last year.
First Six Months of Fiscal Year 2026 Financial Results
Net Revenue
Net revenue was RMB50.9 million (US$7.5 million) for the six months ended June 30, 2026, representing a decrease of 18.3% from RMB62.3 million for the same period last year.
For the six months ended June 30, (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||
2025 | 2026 | ||||||||||||||||||||||||||||||||||||||||||
(in thousands, except for percentages) | |||||||||||||||||||||||||||||||||||||||||||
Revenues | RMB | % | RMB | US$ | % | ||||||||||||||||||||||||||||||||||||||
Swine vaccines | 46,706 | 74.9 | 38,202 | 5,630 | 75.0 | ||||||||||||||||||||||||||||||||||||||
Poultry vaccines | 7,015 | 11.3 | 6,496 | 957 | 12.8 | ||||||||||||||||||||||||||||||||||||||
Other vaccines | 8,607 | 13.8 | 6,249 | 922 | 12.2 | ||||||||||||||||||||||||||||||||||||||
Total revenues | 62,328 | 100 | 50,947 | 7,509 | 100 | ||||||||||||||||||||||||||||||||||||||
- Revenue from sales of swine vaccines was RMB38.2 million (US$5.6 million) for the six months ended June 30, 2026, decreased from RMB46.7 million for the same period last year. Amid the broader industry environment, cost-cutting requirements from key customers resulted in lower sales volume.
- Revenue from sales of poultry vaccines was RMB6.5 million (US$1.0 million) for the six months ended June 30, 2026, decreased from RMB7.0 million for the same period last year. This decline was primarily due to lower sales volume amid weak market demand in the broader industry environment.
- Revenue from sales of other vaccines was RMB6.2 million (US$0.9 million) for the six months ended June 30, 2026, decreased from RMB8.6 million for the same period last year. Lower demand from key customers resulted in reduced sales volume.
Cost of Revenue
Cost of revenue was RMB34.2 million (US$5.0 million) for the six months ended June 30, 2026, representing a decrease of 20.4% from RMB42.9 million for the same period last year.
Gross Profit
Gross profit was RMB16.7 million (US$2.5 million) for the six months ended June 30, 2026, decreased from RMB19.4 million for the same period last year.
Gross profit margin was 32.9% for the six months ended June 30, 2026, representing an increase of 1.8 percentage points from 31.1% for the same period last year. The increase in gross profit margin was primarily attributable to other vaccines, the gross profit margin of which improved from negative 20.8% for the six months ended June 30, 2025 to 0.4% for the six months ended June 30, 2026, mainly because the sales volume of sheep vaccines, which carry relatively high unit costs and fixed production costs, decreased amid weak market demand. The gross profit margins of swine vaccines and poultry vaccines remained relatively stable, at 44.3% and negative 2.9%, respectively, for the six months ended June 30, 2026, as compared to 45.9% and negative 3.8%, respectively, for the six months ended June 30, 2025.
Operating Expenses
Total operating expenses were RMB37.6 million (US$5.5 million) for the six months ended June 30, 2026, decreased from RMB48.3 million for the same period last year.
- Sales and marketing expenses were RMB18.6 million (US$2.7 million) for the six months ended June 30, 2026, decreased from RMB23.2 million for the same period last year. The decrease in sales and marketing expenses mainly resulted from a decrease in payroll for sales staff and travel expenses.
- General and administrative expenses were RMB13.7 million (US$2.0 million) for the six months ended June 30, 2026, decreased from RMB16.8 million for the same period last year. The decrease in administrative expenses was attributed to the decrease in employee compensation, professional service fees and travel expenses. The decrease in professional service fees was mainly because the Company incurred such fees in connection with the preparation for the Company's initial public offering for the six months ended June 30, 2025, while no such fees were incurred for the six months ended June 30, 2026.
- Research and development expenses were RMB4.8 million (US$0.7 million) for the six months ended June 30, 2026, decreased from RMB9.0 million for the same period last year. The decrease in research and development expenses mainly resulted from a decrease in development material expenses and the absence of one-time bonuses paid to research and development personnel in connection with the Company's initial public offering in the current period.
Net Loss
Net loss was RMB22.2 million (US$3.3 million) for the six months ended June 30, 2026, decreased from RMB25.6 million for the same period last year.
Basic and Diluted Loss per Share
Basic and diluted loss per share was RMB0.40 (US$0.06) for the six months ended June 30, 2026, compared to RMB0.46 for the same period last year.
Financial Condition
As of June 30, 2026, the Company had cash of RMB31.9 million (US$4.7 million), compared to RMB50.3 million as of December 31, 2025.
Net cash used in operating activities was RMB16.8 million (US$2.5 million) for the six months ended June 30, 2026, compared to RMB14.0 million for the same period last year.
Net cash used in investing activities was RMB5.7 million (US$0.8 million) for the six months ended June 30, 2026, compared to RMB0.7 million for the same period last year.
Net cash provided by financing activities was RMB4.6 million (US$0.7 million) for the six months ended June 30, 2026, compared to RMB 42.3 million for the same period last year.
Exchange Rate Information
This announcement contains translations of certain foreign currency amounts into U.S. dollars for the convenience of the reader. Unless otherwise stated, all translations of Renminbi ("RMB") into U.S. dollars ("US$") were made at RMB6.7851 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on June 30, 2026.
About Zhengye Biotechnology Holding Limited
Through Jilin Zhengye Biological Products Co., Ltd., the Company's operating entity based in Jilin, China, Zhengye Biotechnology Holding Limited focuses on the research, development, manufacturing, and sales of veterinary vaccines, with an emphasis on vaccines for livestock. For over 20 years, the operating entity has been committed to enhancing the health of animals. The operating entity has 50 veterinary vaccines, including vaccines for swine, cattle, goats, sheep, poultry, and dogs. The operating entity's products are available in 29 provincial regions across China and are exported overseas to Vietnam, Pakistan, and Egypt as of the date of this press release. The operating entity has three veterinary vaccine production floors (including 13 vaccine production lines), one quality examination center, and one animal facility for vaccine development, all operating in accordance with Good Manufacturing Practices for Veterinary Drugs issued by the Ministry of Agriculture and Rural Affairs of the PRC. For more information, please visit the Company's website: http://ir.jlzybio.com.
Forward-Looking Statements
This announcement contains statements that may constitute "forward-looking" statements which are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this announcement. Statements that are not historical facts, including statements about the Company's beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the United States Securities and Exchange Commission.
For more information, please contact:
Zhengye Biotechnology Holding Limited
Investor Relations Department
Email: [email protected]
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: [email protected]
ZHENGYE BIOTECHNOLOGY HOLDING LIMITED | ||||||||||||
As of | ||||||||||||
December 31, | June 30, | |||||||||||
RMB | RMB | US$ | ||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash | 50,332 | 31,884 | 4,699 | |||||||||
Restricted cash | 2 | 2 | - | |||||||||
Short-term investments | 1,560 | 1,284 | 189 | |||||||||
Notes receivable, net | - | 467 | 69 | |||||||||
Accounts receivable, net | 18,485 | 24,865 | 3,665 | |||||||||
Advance to suppliers | 2,208 | 1,233 | 182 | |||||||||
Advance to suppliers-a related party | - | 16 | 2 | |||||||||
Inventories, net | 39,166 | 40,339 | 5,945 | |||||||||
Prepayments and other current assets, net | 25,667 | 24,808 | 3,656 | |||||||||
Total current assets | 137,420 | 124,898 | 18,407 | |||||||||
Non-current assets: | ||||||||||||
Property, plant and equipment, net | 236,812 | 226,431 | 33,372 | |||||||||
Land use rights, net | 7,673 | 7,544 | 1,112 | |||||||||
Intangible assets, net | 47,084 | 50,766 | 7,482 | |||||||||
Right-of-use assets, net | 469 | 412 | 61 | |||||||||
Long-term prepayments | 7,014 | 1,935 | 285 | |||||||||
Total non-current assets | 299,052 | 287,088 | 42,312 | |||||||||
Total assets | 436,472 | 411,986 | 60,719 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Short-term loans | 65,100 | 69,374 | 10,224 | |||||||||
Current maturities of long-term loans | 700 | 700 | 103 | |||||||||
Derivative liabilities | - | 1,050 | 155 | |||||||||
Operating lease liabilities-current | 106 | 25 | 4 | |||||||||
Accounts payable | 44,010 | 38,878 | 5,728 | |||||||||
Contract liabilities | 4,752 | 3,405 | 502 | |||||||||
Taxes payable | 2,345 | 2,774 | 409 | |||||||||
Accrued expenses and other liabilities | 3,463 | 3,572 | 527 | |||||||||
Total current liabilities | 120,476 | 119,778 | 17,652 | |||||||||
Non-current liabilities: | ||||||||||||
Long-term loans | 8,850 | 8,500 | 1,253 | |||||||||
Operating lease liabilities-non-current | 327 | 296 | 44 | |||||||||
Deferred tax liabilities | 104 | - | - | |||||||||
Total non-current liabilities | 9,281 | 8,796 | 1,297 | |||||||||
Total liabilities | 129,757 | 128,574 | 18,949 | |||||||||
Commitments and contingencies | - | - | - | |||||||||
Shareholders' equity: | ||||||||||||
Class A ordinary shares (US$0.000025 par value; 1,900,000,000 shares | 1 | 1 | - | |||||||||
Class B ordinary shares (US$0.000025 par value; 100,000,000 shares | 7 | 7 | 1 | |||||||||
Additional paid-in capital | 240,752 | 240,752 | 35,482 | |||||||||
Statutory reserves | 32,647 | 32,647 | 4,812 | |||||||||
Retained deficit | (21,633) | (40,549) | (5,976) | |||||||||
Accumulated other comprehensive income | (1,926) | (3,066) | (452) | |||||||||
Total Zhengye Biotechnology Holding Limited's shareholders' equity | 249,848 | 229,792 | 33,867 | |||||||||
Noncontrolling interests | 56,867 | 53,620 | 7,903 | |||||||||
Total equity | 306,715 | 283,412 | 41,770 | |||||||||
Total liabilities and equity | 436,472 | 411,986 | 60,719 | |||||||||
ZHENGYE BIOTECHNOLOGY HOLDING LIMITED | ||||||||||||
For the six months ended June 30, | ||||||||||||
2025 | 2026 | |||||||||||
RMB | RMB | USD | ||||||||||
Net revenues | 62,328 | 50,947 | 7,509 | |||||||||
Cost of revenues | (42,944) | (34,198) | (5,040) | |||||||||
Gross profit | 19,384 | 16,749 | 2,469 | |||||||||
Sales and marketing expenses | (23,243) | (18,629) | (2,746) | |||||||||
General and administrative expenses | (16,770) | (13,703) | (2,020) | |||||||||
Research and development expenses | (8,969) | (4,770) | (703) | |||||||||
Reversal of (provision for) credit losses | 719 | (470) | (69) | |||||||||
Total operating expenses | (48,263) | (37,572) | (5,538) | |||||||||
Operating loss | (28,879) | (20,823) | (3,069) | |||||||||
Other income (expenses): | ||||||||||||
Interest income | 72 | 11 | 2 | |||||||||
Interest expense | (1,752) | (1,565) | (231) | |||||||||
Unrealized gains (losses) on marketable equity securities and derivative | 588 | (1,326) | (195) | |||||||||
Unrealized foreign exchange gain (loss) | (1,421) | 627 | 92 | |||||||||
Government subsidy | 502 | 893 | 132 | |||||||||
Other expenses | - | (79) | (12) | |||||||||
Total other expenses, net | (2,011) | (1,439) | (212) | |||||||||
Loss before income taxes | (30,890) | (22,262) | (3,281) | |||||||||
Income tax benefits | 5,340 | 99 | 14 | |||||||||
Net loss | (25,550) | (22,163) | (3,267) | |||||||||
Net loss attributable to noncontrolling interests | 3,882 | 3,247 | 479 | |||||||||
Net loss attributable to the Zhengye Biotechnology Holding Limited's | (21,668) | (18,916) | (2,788) | |||||||||
Comprehensive loss | ||||||||||||
Net loss | (25,550) | (22,163) | (3,267) | |||||||||
Other comprehensive loss | ||||||||||||
Foreign currency translation adjustment | (969) | (1,140) | (168) | |||||||||
Total comprehensive loss | (26,519) | (23,303) | (3,435) | |||||||||
Total comprehensive loss attributable to non-controlling interest | 3,882 | 3,247 | 479 | |||||||||
Total comprehensive loss attributable to the Zhengye Biotechnology | (22,637) | (20,056) | (2,956) | |||||||||
Loss per share: | ||||||||||||
-Basic and diluted – Class A Ordinary shares | (0.46) | (0.40) | (0.06) | |||||||||
-Basic and diluted – Class B Ordinary shares | (0.46) | (0.40) | (0.06) | |||||||||
Weighted average shares outstanding used in calculating basic and | ||||||||||||
Ordinary shares – basic and diluted | 47,316,793 | 47,391,376 | 47,391,376 | |||||||||
Basic and diluted – Class A Ordinary shares | 7,316,793 | 7,391,376 | 7,391,376 | |||||||||
Basic and diluted – Class B Ordinary shares | 40,000,000 | 40,000,000 | 40,000,000 | |||||||||
ZHENGYE BIOTECHNOLOGY HOLDING LIMITED | ||||||||||||
For the six months ended June 30, | ||||||||||||
2025 | 2026 | |||||||||||
RMB | RMB | US$ | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net loss | (25,550) | (22,163) | (3,267) | |||||||||
Adjustments to reconcile net loss to net cash provided by operating | ||||||||||||
Depreciation and amortization | 12,251 | 14,021 | 2,067 | |||||||||
Amortization of operating lease right-of-use assets | - | 52 | 8 | |||||||||
Provision for (reversal of) credit losses | (719) | 470 | 69 | |||||||||
Impairment for inventory | 4,115 | 8,444 | 1,244 | |||||||||
Deferred tax benefits | (5,340) | (104) | (15) | |||||||||
Unrealized (gains) losses on marketable equity securities and derivative | (588) | 1,326 | 195 | |||||||||
Unrealized foreign exchange (gain) loss | 1,421 | (627) | (92) | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Notes receivable | (99) | (470) | (69) | |||||||||
Accounts receivable | 23,336 | (6,874) | (1,013) | |||||||||
Advance to suppliers | (1,572) | 975 | 144 | |||||||||
Advance to suppliers-a related party | - | (16) | (2) | |||||||||
Inventories | 554 | (9,616) | (1,417) | |||||||||
Prepayments and other current assets | (23,379) | 189 | 28 | |||||||||
Other receivable -a related party | 738 | - | - | |||||||||
Operating lease liabilities | - | (107) | (16) | |||||||||
Accounts payable | (1,513) | (1,505) | (223) | |||||||||
Contract liabilities | 1,516 | (1,347) | (199) | |||||||||
Taxes payable | 115 | 429 | 63 | |||||||||
Accrued expenses and other liabilities | 746 | 110 | 17 | |||||||||
Net cash used in operating activities | (13,968) | (16,813) | (2,478) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Loans to a related party | (7,000) | - | - | |||||||||
Loan repayment from a related party | 7,000 | - | - | |||||||||
Purchase of property, plant and equipment | (255) | (3,377) | (498) | |||||||||
Prepayment for purchase of intangible assets | (409) | (2,360) | (348) | |||||||||
Net cash used in investing activities | (664) | (5,737) | (846) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Proceeds from loans | 41,910 | 46,810 | 6,899 | |||||||||
Repayment of loans | (44,000) | (42,260) | (6,228) | |||||||||
Repayment to a related party | (146) | - | - | |||||||||
Proceeds from initial public offering | 43,081 | - | - | |||||||||
Shareholder contribution | 1,470 | - | - | |||||||||
Net cash provided by financing activities | 42,315 | 4,550 | 671 | |||||||||
Effect of exchange rate changes on cash and restricted cash | (680) | (448) | (66) | |||||||||
Net increase (decrease) in cash and restricted cash | 27,003 | (18,448) | (2,719) | |||||||||
Cash and restricted cash at beginning of period | 18,606 | 50,334 | 7,418 | |||||||||
Cash and restricted cash at end of period | 45,609 | 31,886 | 4,699 | |||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW | ||||||||||||
Cash paid for: | ||||||||||||
Interest | 1,700 | 1,564 | 231 | |||||||||
Income taxes | - | 5 | 1 | |||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||||||
Liabilities assumed in connection with purchase of property, plant and | 1,521 | 151 | 22 | |||||||||
Derecognition of right-of-use asset and lease liability due to operating | - | 5 | 1 | |||||||||
Reclassification of deferred initial public offering cost into additional | 8,663 | - | - | |||||||||
SOURCE Zhengye Biotechnology Holding Limited
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