Zhengye Biotechnology Holding Limited Announces Fiscal Year 2024 Financial Results
JILIN, China, July 3, 2025 /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 financial results for the fiscal year ended December 31, 2024.
Mr. Songlin Song, co-chief executive officer of Zhengye, remarked, "Fiscal year 2024 was a transformational year for us, marked by strategic decisions and tough yet necessary shifts, as we navigated significant market adjustments and proactively diversified our customer base in pursuit of long-term growth. Amid global uncertainties and challenging domestic market conditions, we made the deliberate decision to reduce sales of swine vaccines, primarily to mitigate concentration risk from our largest customers. We believe this will lead to a healthier and more balanced customer portfolio to better support our strategic diversification.
Meanwhile, we have maintained our research and development ("R&D") investments, recognizing that innovation is key to sustainable and long-term growth, even amid current headwinds. Over the past year, we made progress in expanding into China's fast-growing pet vaccine market, having completed clinical trials for two vaccines targeting cats and dogs. We see this as a high-potential segment and expect it to become a key focus moving forward. Additionally, we were honored to receive two Category I New Veterinary Drug Certificates from the Ministry of Agriculture and Rural Affairs for two vaccines jointly developed by us and other institutions, which is a strong testament to our R&D capabilities.
Mr. Aiden Han, co-chief executive officer of Zhengye, added, "With our successful Nasdaq listing, global market expansion has become a central component of our long-term vision to become a world-leading, trusted manufacturer of veterinary vaccines. Exploring international sales opportunities and expanding our global distribution network will be a strategic priority in the years ahead.
Though these transitional measures may bring noticeable short-term effects, we believe the long-term benefits will be enduring and substantial. We are building a more resilient and adaptable foundation to support our growth ambitions. Our unwavering commitment to developing safe and innovative products and consistently delivering high quality will continue to be the cornerstone of long-term value creation for our stakeholders."
Fiscal Year 2024 Financial Summary
- Net revenues were RMB186.4 million (US$25.5 million) in fiscal year 2024, compared to RMB211.7 million in fiscal year 2023.
- Gross profit was RMB91.3 million (US$12.5 million) in fiscal year 2024, compared to RMB117.5 million in fiscal year 2023.
- Gross profit margin was 49.0% in fiscal year 2024, compared to 55.5% in fiscal year 2023.
- Total operating expenses were RMB74.9 million (US$10.3 million) in fiscal year 2024, increased from RMB72.5 million in fiscal year 2023.
- Net income was RMB13.5 million (US$1.8 million) in fiscal year 2024, compared to RMB37.5 million in fiscal year 2023.
- Basic and diluted earnings per share were RMB0.25 (US$0.03) in fiscal year 2024, compared to RMB0.69 in fiscal year 2023.
Fiscal Year 2024 Financial Results
Net Revenues
Net revenues were RMB186.4 million (US$25.5 million) in fiscal year 2024, representing a decrease of 12.0% from RMB211.7 million in fiscal year 2023. The decrease was primarily due to the veterinary vaccine market adjustments and the reduced sales of swine vaccines following the Company's strategic realignment of sales practices aimed at diversifying the customer base and reducing concentration risk.
For the years ended December 31, | |||||||||||||||||
2023 | 2024 | ||||||||||||||||
RMB | % | RMB | US$ | % | |||||||||||||
(in thousands, except for percentages) | |||||||||||||||||
Revenues | |||||||||||||||||
Swine vaccines | 188,919 | 89.3 | 157,789 | 21,617 | 84.7 | ||||||||||||
Poultry vaccines | 15,430 | 7.3 | 15,506 | 2,124 | 8.3 | ||||||||||||
Other vaccines | 7,302 | 3.4 | 13,061 | 1,790 | 7.0 | ||||||||||||
Total revenues | 211,651 | 100 | 186,356 | 25,531 | 100 | ||||||||||||
- Revenue from sales of swine vaccines was RMB157.8 million (US$21.6 million) in fiscal year 2024, decreased from RMB188.9 million in fiscal year 2023. The decrease was a result of the control of sales to Zhengye's operating entity's largest customer.
- Revenue from sales of poultry vaccines was RMB15.5 million (US$2.1 million) in fiscal year 2024, increased from RMB15.4 million in fiscal year 2023. There was no significant change in revenue from sales of poultry vaccines and the difference was caused by normal demand fluctuation.
- Revenue from sales of other vaccines was RMB13.1 million (US$1.8 million) in fiscal year 2024, increased from RMB7.3 million in fiscal year 2023. The increase in sales of other vaccines was caused by the increased sales of the vaccines for sheep.
Cost of Revenues
Cost of revenues was RMB95.1 million (US$13.0 million) in fiscal year 2024, representing an increase of 1.0% from RMB94.1 million in fiscal year 2023. The increase was mainly due to the increase in the cost of poultry vaccines.
Gross Profit
Gross profit was RMB91.3 million (US$12.5 million) in fiscal year 2024, decreased from RMB117.5 million in fiscal year 2023.
Gross profit margin was 49.0% in fiscal year 2024, decreased from 55.5% in fiscal year 2023. The decrease was mainly due to the lower sales price and unchanged fixed cost.
Operating Expenses
Total operating expenses were RMB74.9 million (US$10.3 million) in fiscal year 2024, increased from RMB72.5 million in fiscal year 2023.
- Sales and marketing expenses were RMB41.3 million (US$5.7 million) in fiscal year 2024, increased from RMB40.7 million in fiscal year 2023. The increase in sales and marketing expenses mainly resulted from an increase in payroll for sales staffs, marketing promotion expenses and entertainment, partially offset by a decrease in travel expenses and advertising expenses.
- General and administrative expenses were RMB22.6 million (US$3.1 million) in fiscal year 2024, decreased from RMB23.6 million in fiscal year 2023. The decrease in administrative expenses is attributed to the reduction in employee compensation and decrease in depreciation and amortization.
- Research and development expenses were RMB12.8 million (US$1.8 million) in fiscal year 2024, increased from RMB11.9 million in fiscal year 2023. The increase in research and development expenses mainly resulted from an increase in material expenses.
Net Income
Net income was RMB13.5 million (US$1.8 million) in fiscal year 2024, compared to RMB37.5 million in fiscal year 2023.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share were RMB0.25 (US$0.03) in fiscal year 2024, compared to RMB0.69 in fiscal year 2023.
Financial Condition
As of December 31, 2024, the Company had cash of RMB18.6 million (US$2.5 million), compared to RMB15.1 million as of December 31, 2023.
Net cash provided by operating activities was RMB41.0 million (US$5.6 million) in fiscal year 2024, compared to RMB48.2 million in fiscal year 2023.
Net cash used in investing activities was RMB27.7 million (US$3.8 million) in fiscal year 2024, compared to RMB11.8 million in fiscal year 2023.
Net cash used in financing activities was RMB22.1 million (US$3.0 million) in fiscal year 2024, compared to RMB19.0 million in fiscal year 2023.
Exchange Rate Information
This announcement contains translations of certain foreign currency amounts into U.S. dollars for the convenience of the reader. Unless otherwise stated, all translations of Renminbi ("RMB") into U.S. dollars ("US$") were made at RMB7.2993 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 31, 2024.
Recent Development
On January 8, 2025, the Company closed its initial public offering (the "Offering"). We issued and sold an aggregate of 1,500,000 ordinary shares at a public offering price of $4.00 per ordinary share. On January 14, 2025, Kingswood Capital Partners, LLC, as the representative of the underwriters of the Offering, exercised their over-allotment option in full to purchase an additional 225,000 ordinary shares at the public offering price of $4.00 per share. The total gross proceeds received from the Offering, including proceeds from the exercise of the over-allotment option, were $6.9 million, before deducting underwriting discounts and other related expenses. The Company's ordinary shares commenced trading on the Nasdaq Capital Market on January 7, 2025, under the ticker symbol "ZYBT."
On February 25, 2025, the Ministry of Agriculture and Rural Affairs ("the Ministry") approved the Live Vaccine for Mycoplasma bovis (Strain HB150) (2025 No.11) as a Category I New Veterinary Drug, which was jointly developed by the Company, Huazhong Agricultural University and other institutions. On March 21, 2025, the Ministry announced the approval (2025 No.18) of another Category I New Veterinary Drug — a Pentavalent Inactivated Vaccine for poultry diseases including Newcastle Disease, Infectious Bronchitis, Avian Influenza (H9), Infectious Bursal Disease, and Avian Adenovirus (Group I, Serotype 4), which was jointly developed by the Company, Pulike Biological Engineering, Inc. and other institutions. Both of these veterinary vaccines have obtained the national Category I Veterinary Drug Registration Certificate ("Category I Certificate"), marking a major breakthrough for the Company in the field of animal vaccine R&D. Category I Certificates are granted to biological products that demonstrate significant innovation and are being developed for the first time, either domestically or internationally, without prior market entry. Compared to Category II and III New Veterinary Drugs, Category I New Veterinary Drugs enjoy the longest monitoring period of up to five years. During this period, no other companies, except for the original applicants, are permitted to produce or import the drugs. This exclusivity creates a strong technological entry barrier and is expected to generate substantial economic returns while enhancing the Company's industry influence.
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 46 veterinary vaccines, including vaccines for swine, cattle, goats, sheep, poultry, and dogs. The operating entity's products are available in 28 provincial regions across China and are exported overseas to Vietnam, Pakistan, and Egypt. The operating entity has three GMP veterinary vaccine production floors, including 13 GMP vaccine production lines, one quality examination center, and one animal facility for vaccine development. The operating entity has 49 employees who have over a decade of experience in the veterinary vaccine industry. For more information, please visit the Company's website: http://ir.jlzybio.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. 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. 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 SEC.
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 CONSOLIDATED BALANCE SHEETS (Amounts in thousands of RMB and US$, except for number of shares) | ||||||||||||
As of December 31, | ||||||||||||
2023 | 2024 | |||||||||||
RMB | RMB | US$ | ||||||||||
ASSETS | ||||||||||||
Current assets: | ||||||||||||
Cash | 15,073 | 18,604 | 2,549 | |||||||||
Restricted Cash | 12,113 | 2 | — | |||||||||
Short-term investments | 1,224 | 1,433 | 197 | |||||||||
Notes receivable, net | 23,215 | 25,592 | 3,506 | |||||||||
Accounts receivable, net | 74,166 | 59,563 | 8,160 | |||||||||
Advance to suppliers | 3,110 | 10,788 | 1,478 | |||||||||
Inventories, net | 58,300 | 58,220 | 7,977 | |||||||||
Other receivables, net | 1,302 | 2,626 | 360 | |||||||||
Other receivable-a related party | 738 | 738 | 101 | |||||||||
Total current assets | 189,241 | 177,566 | 24,328 | |||||||||
Non-current assets: | ||||||||||||
Property, plant and equipment, net | 263,248 | 255,164 | 34,957 | |||||||||
Land use rights, net | 8,187 | 7,930 | 1,087 | |||||||||
Intangible assets, net | 16,297 | 14,850 | 2,034 | |||||||||
Long-term prepayments | 6,504 | 18,698 | 2,562 | |||||||||
Deferred IPO expenses | 4,497 | 8,048 | 1,103 | |||||||||
Net deferred tax assets | 11,914 | 10,991 | 1,506 | |||||||||
Total non-current assets | 310,647 | 315,681 | 43,249 | |||||||||
Total assets | 499,888 | 493,247 | 67,577 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Short-term loans | 79,860 | 74,443 | 10,199 | |||||||||
Current maturities of long term loans | — | 7,190 | 985 | |||||||||
Accounts payable | 45,659 | 42,960 | 5,885 | |||||||||
Contract liabilities | 3,885 | 3,485 | 477 | |||||||||
Taxes payable | 2,295 | 2,066 | 283 | |||||||||
Dividends payable | 15,652 | — | — | |||||||||
Amount due to related parties | — | 146 | 20 | |||||||||
Accrued expenses and other liabilities | 2,882 | 5,617 | 769 | |||||||||
Total current liabilities | 150,233 | 135,907 | 18,618 | |||||||||
Non-current liabilities: | ||||||||||||
Long-term loans | 9,990 | 4,800 | 658 | |||||||||
Other payables – non-current | 393 | — | — | |||||||||
Total non-current liabilities | 10,383 | 4,800 | 658 | |||||||||
Total liabilities | 160,616 | 140,707 | 19,276 | |||||||||
Commitments and contingencies | ||||||||||||
Shareholders' equity: | ||||||||||||
Ordinary shares (US$0.000025 par value; 2,000,000,000 shares | 8 | 8 | 1 | |||||||||
Additional paid-in capital | 203,150 | 203,150 | 27,832 | |||||||||
Statutory reserves | 31,311 | 32,647 | 4,473 | |||||||||
Retained earnings | 38,381 | 48,151 | 6,597 | |||||||||
Accumulated other comprehensive income | — | 3 | — | |||||||||
Total Zhengye Biotechnology Holding Limited's shareholders' | 272,850 | 283,959 | 38,903 | |||||||||
Noncontrolling interests | 66,422 | 68,581 | 9,398 | |||||||||
Total equity | 339,272 | 352,540 | 48,301 | |||||||||
Total liabilities and equity | 499,888 | 493,247 | 67,577 | |||||||||
* | Retroactively adjusted for effect of a 4-for-1 forward split on June 6, 2024. |
ZHENGYE BIOTECHNOLOGY HOLDING LIMITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Amounts in thousands of RMB and US$, except for number of shares and per share data) | ||||||||||||||||
For the years ended December 31, | ||||||||||||||||
2022 | 2023 | 2024 | ||||||||||||||
RMB | RMB | RMB | USD | |||||||||||||
Net revenues | 260,269 | 211,651 | 186,356 | 25,531 | ||||||||||||
Cost of revenues | (112,390) | (94,143) | (95,061) | (13,023) | ||||||||||||
Gross profit | 147,879 | 117,508 | 91,295 | 12,508 | ||||||||||||
Sales and marketing expenses | (34,565) | (40,743) | (41,269) | (5,654) | ||||||||||||
General and administrative expenses | (24,321) | (23,592) | (22,575) | (3,093) | ||||||||||||
Research and development expenses | (13,424) | (11,901) | (12,794) | (1,753) | ||||||||||||
Reversal (allowance) for credit losses | (9,735) | 3,714 | 1,782 | 244 | ||||||||||||
Total operating expenses | (82,045) | (72,522) | (74,856) | (10,256) | ||||||||||||
Operating income | 65,834 | 44,986 | 16,439 | 2,252 | ||||||||||||
Other income (expenses): | ||||||||||||||||
Other income | 650 | 433 | 692 | 95 | ||||||||||||
Other expenses | (100) | (199) | (337) | (45) | ||||||||||||
Interest income | 114 | 312 | 231 | 32 | ||||||||||||
Interest expense | (2,839) | (4,423) | (4,043) | (554) | ||||||||||||
Unrealized foreign exchange gain | — | — | 679 | 93 | ||||||||||||
Government subsidy | 255 | 2,653 | 733 | 100 | ||||||||||||
Total other expenses, net | (1,920) | (1,224) | (2,045) | (279) | ||||||||||||
Income before income taxes | 63,914 | 43,762 | 14,394 | 1,973 | ||||||||||||
Income tax expenses | (8,172) | (6,253) | (924) | (127) | ||||||||||||
Net income | 55,742 | 37,509 | 13,470 | 1,846 | ||||||||||||
Net income attributable to noncontrolling interests | (9,007) | (6,052) | (2,159) | (296) | ||||||||||||
Net income attributable to the Zhengye | 46,735 | 31,457 | 11,311 | 1,550 | ||||||||||||
Comprehensive income | ||||||||||||||||
Net income | 55,742 | 37,509 | 13,470 | 1,846 | ||||||||||||
Other comprehensive income | ||||||||||||||||
Foreign currency translation adjustment | — | — | 3 | — | ||||||||||||
Total comprehensive income | 55,742 | 37,509 | 13,473 | 1,846 | ||||||||||||
Less: total comprehensive income attributable to | (9,007) | (6,052) | (2,159) | (296) | ||||||||||||
Total comprehensive income attributable to the | 46,735 | 31,457 | 11,314 | 1,550 | ||||||||||||
Earnings per share: | ||||||||||||||||
Ordinary shares – basic and diluted | 1.02 | 0.69 | 0.25 | 0.03 | ||||||||||||
Weighted average shares outstanding used in | ||||||||||||||||
Ordinary shares – basic and diluted* | 45,666,376 | 45,666,376 | 45,666,376 | 45,666,376 | ||||||||||||
* | Retroactively adjusted for effect of a 4-for-1 forward split on June 6, 2024. |
ZHENGYE BIOTECHNOLOGY HOLDING LIMITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands of RMB and US$, except for number of shares) | ||||||||||||||||
For the years ended December 31, | ||||||||||||||||
2022 | 2023 | 2024 | ||||||||||||||
RMB | RMB | RMB | US$ | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||||
Net income | 55,742 | 37,509 | 13,470 | 1,846 | ||||||||||||
Adjustments to reconcile net income to net cash | ||||||||||||||||
Depreciation and amortization | 18,800 | 23,912 | 24,163 | 3,310 | ||||||||||||
Allowance (reversal) for credit losses | 9,735 | (3,714) | (1,782) | (244) | ||||||||||||
Impairment for inventory and intangible asset | 968 | 10,026 | 5,962 | 817 | ||||||||||||
Loss on disposal of property and equipment | — | 187 | 174 | 24 | ||||||||||||
Deferred tax expenses (benefits) | (1,311) | 541 | 924 | 127 | ||||||||||||
Unrealized gains on short-term investments | — | — | (209) | (29) | ||||||||||||
Unrealized foreign exchange gain | — | — | (679) | (93) | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Notes receivable | (22,650) | 8,310 | (3,752) | (514) | ||||||||||||
Accounts receivable | (24,957) | 31,044 | 16,345 | 2,240 | ||||||||||||
Account receivable-a related party | 233 | — | — | — | ||||||||||||
Inventories | (12,325) | (12,902) | (5,882) | (806) | ||||||||||||
Other receivables | (4) | (563) | (1,283) | (176) | ||||||||||||
Other receivable-a related party | — | (738) | — | — | ||||||||||||
Advance to suppliers | (713) | (619) | (7,677) | (1,052) | ||||||||||||
Accounts payable | (9,673) | (35,613) | (404) | (56) | ||||||||||||
Taxes payable | 3,191 | (7,702) | (229) | (31) | ||||||||||||
Accrued expense and other liabilities | 207 | (582) | 2,698 | 370 | ||||||||||||
Contract liabilities | 317 | (715) | (400) | (55) | ||||||||||||
Other payables – non-current | (225) | (197) | (393) | (54) | ||||||||||||
Net cash provided by operating activities | 17,335 | 48,184 | 41,046 | 5,624 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||||
Purchase of short-term investments | — | (1,224) | — | — | ||||||||||||
Purchase of property, plant and equipment | (27,328) | (7,396) | (13,587) | (1,862) | ||||||||||||
Prepayment for purchase of intangible assets | — | (4,204) | (14,186) | (1,943) | ||||||||||||
Proceeds from disposal of property, plant and | — | 1,059 | 108 | 15 | ||||||||||||
Net cash used in investing activities | (27,328) | (11,765) | (27,665) | (3,790) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||||
Proceeds from loans | 99,852 | 79,860 | 90,122 | 12,347 | ||||||||||||
Repayment of loans | (64,972) | (54,890) | (92,860) | (12,722) | ||||||||||||
Proceeds from related parties | — | — | 146 | 20 | ||||||||||||
Dividend payment to shareholders | (21,425) | (39,452) | (16,023) | (2,195) | ||||||||||||
Deferred IPO expenses | — | (4,497) | (3,514) | (481) | ||||||||||||
Net cash provided by (used in) financing activities | 13,455 | (18,979) | (22,129) | (3,031) | ||||||||||||
Net increase (decrease) in cash and restricted cash | 3,462 | 17,440 | (8,748) | (1,197) | ||||||||||||
Effect of exchange rate changes on cash | — | — | 168 | 22 | ||||||||||||
Cash and restricted cash at beginning of year | 6,284 | 9,746 | 27,186 | 3,724 | ||||||||||||
Cash and restricted cash at end of year | 9,746 | 27,186 | 18,606 | 2,549 | ||||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH | ||||||||||||||||
Cash paid for: | ||||||||||||||||
Interest | 2,839 | 4,423 | 3,985 | 546 | ||||||||||||
Income taxes | 8,481 | 10,486 | 116 | 16 | ||||||||||||
NON-CASH INVESTING AND FINANCING | ||||||||||||||||
Liabilities assumed in connection with purchase of | 11,379 | 2,345 | 8,633 | 1,183 | ||||||||||||
SOURCE Zhengye Biotechnology Holding Limited
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