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: ir@jlzybio.com
Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
ZHENGYE BIOTECHNOLOGY HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of RMB and US$, except for number of shares)
As of
December 31, June 30,
2025 2026
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
authorized; 7,391,376 and 7,391,376 shares issued and outstanding as
of December 31, 2025 and June 30, 2026, respectively)
Class B ordinary shares (US$0.000025 par value; 100,000,000 shares 7 7 1
authorized; 40,000,000 and 40,000,000 shares issued and outstanding
as of December 31, 2025 and June 30, 2026, respectively)
Additional paid-in capital 240,752 240,752 35,482
Statutory reserves 32,647 32,647 4,812
Retained deficit (21,633) (40,549) (5,976)
Accumulated other comprehensive income (1,926) (3,066) (452)
Total Zhengye Biotechnology Holding Limited's shareholders' equity 249,848 229,792 33,867
Noncontrolling interests 56,867 53,620 7,903
Total equity 306,715 283,412 41,770
Total liabilities and equity 436,472 411,986 60,719
ZHENGYE BIOTECHNOLOGY HOLDING LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(Amounts in thousands of RMB and US$, except for number of shares and per share data)
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)
instruments
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)
shareholders
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)
Holding Limited's shareholders
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
diluted earnings per share:
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
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands of RMB and US$, except for number of shares)
For the six months ended June
30,
2025 2026
RMB RMB US$
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss (25,550) (22,163) (3,267)
Adjustments to reconcile net loss to net cash provided by operating
activities:
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
instruments
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
INFORMATION:
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
equipment
Derecognition of right-of-use asset and lease liability due to operating 5 1
lease modification
Reclassification of deferred initial public offering cost into additional 8,663
paid-in capital
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