Break Up Equity Dispersion! Century Jingyuan "Second Generation" May Become New Controlling Shareholder of Vaccine Leader Watson Biologics

Why is AI Watson Biological favored by Century Golden Source’s second-generation leadership?

Source: Times Weekly Author: Lin Yunxiao

After being suspended for two days, Watson Biological (300142.SZ) released multiple announcements detailing the progress of its control rights change and its issuance of A-shares to specific investors. Watson Biological’s new controlling shareholder has emerged, differing from the industry’s previous speculation of Yuxi State-owned Capital Operation Co., Ltd. Instead, Beijing Tengyun Xinwo Biotechnology Partnership (Limited Partnership) (hereinafter referred to as “Tengyun Xinwo”) under Century Golden Source may become the company’s new controlling shareholder.

On March 18, Watson Biological issued an “Announcement on the Progress of Control Rights Change and Resumption of Trading,” stating that the company is planning to issue shares to Tengyun Xinwo, which may lead to a change in control. After the issuance, Tengyun Xinwo will hold 11.51% of the shares, and together with its concerted parties, will hold 14.46%. The controlling shareholder will change to Tengyun Xinwo, and the actual controller will be Huang Tao. The company’s stock resumed trading on March 19.

Watson Biological also released the “2026 Annual Plan for the Private Placement of A-shares” (hereinafter referred to as the “Plan”), proposing to issue no more than 208 million A-shares to Tengyun Xinwo, representing no more than 30.00% of the total pre-issuance share capital of 1.599 billion shares.

Regarding the issuance price and fundraising, Watson Biological set the price at 9.63 yuan per share, with total funds raised not exceeding 2.003 billion yuan. After deducting issuance costs, all funds will be used to supplement working capital. Tengyun Xinwo will subscribe in cash, and the shares obtained cannot be transferred within 18 months from the completion of the issuance.

The purpose of this private placement to Tengyun Xinwo, as explained by Watson Biological, is to consolidate the company’s R&D advantages, enhance technological and product transformation capabilities, optimize capital structure, improve subsequent financing ability, and increase operational efficiency.

On March 19, Watson Biological’s stock closed at 12.70 yuan per share, up 3.42%.

Regarding the company’s long-term dispersed equity structure and the reasons for choosing to cooperate with Tengyun Xinwo, Times Weekly reporters contacted Watson Biological by phone and email. As of press time, no effective response had been received.

Image source: TuChong Creative

Century Golden Source May Take Control

From an equity structure perspective, Watson Biological has long been dispersed, with no controlling shareholder or actual controller.

According to Watson Biological’s Q3 2025 report, the top 10 shareholders include three investment funds, six domestic individuals, and one domestic non-state-owned legal entity. The largest shareholder is Industrial and Commercial Bank of China – E Fund Innovation Board ETF, holding 2.16%. All other shareholders hold less than 2%.

Among the six domestic individuals in the top 10, Chairman and legal representative Li Yunchun is the third-largest shareholder with 1.70%. Additionally, the fifth-largest shareholder, Chengdu Xiyun Enterprise Management Partnership (Limited Partnership), is controlled by Li Yunchun and acts as the appointed representative of the general partner, indicating an associated action relationship.

In this transaction, Tengyun Xinwo has signed a long-term concerted action agreement with the company’s original core shareholders and management, stabilizing the equity structure and governance.

According to Tianyancha, Tengyun Xinwo was established on February 12, 2026, and has been in operation for just over a month. Located in Beijing, it is a company mainly engaged in technology promotion and application services, with registered capital of 1 million yuan.

Tengyun Health Management Co., Ltd. is the largest shareholder of Tengyun Xinwo, holding 79.99%. According to Century Golden Source’s official website, Tengyun Health is part of Century Golden Source Group’s health industry system, integrating the health ecosystem industry chain and building a health industry ecosystem, focusing on investment in health management, medical services, innovative devices, elderly care, and industrial investment.

Public information shows that the actual controller of this entry into Watson Biological, Huang Tao, is the legal representative, president, and actual controller of Century Golden Source Investment Group Co., Ltd., and is the eldest son of the group’s founder, Huang Rulun. In January 2018, Huang Tao succeeded Huang Rulun as executive director and general manager of Century Golden Source Investment Group. On March 5, 2026, Hurun Research Institute released the “2026 Hurun Global Rich List,” ranking Huang Rulun and Huang Tao’s family with wealth of 35.5 billion yuan at 871st place.

Image source: Century Golden Source official website

Watson Biological’s 2025 net profit is estimated between 160 million and 190 million yuan

Founded in 2010 on the Shenzhen Growth Enterprise Market, Watson Biological’s core products include the 13-valent pneumonia conjugate vaccine and the bivalent HPV vaccine. According to its 2025 performance forecast, the company expects net profit attributable to shareholders of 160 million to 190 million yuan, a year-on-year increase of 13.00% to 34.00%; excluding non-recurring gains and losses, net profit is estimated at 85 million to 99 million yuan, down 22.00% to 9.00% year-on-year.

The forecast indicates that during the reporting period, the overall domestic and international vaccine markets are in a downward cycle, with total revenue from vaccine products decreasing by about 8% compared to the previous year.

The Plan also notes that many domestic vaccine companies have long focused on traditional, mature technology products with lower market risk, with a high proportion of Me-too pipelines, mainly concentrated in popular vaccines such as cervical cancer, pneumococcal, and meningococcal vaccines, leading to intensified competition and product homogenization in the domestic vaccine market. Recently, leading Chinese vaccine companies have been leveraging new technological opportunities to narrow the gap with global vaccine giants.

According to Wind data, 11 A-share vaccine companies have released 2025 performance forecasts, with 7 expecting a decline in net profit attributable to shareholders. Southwest Securities research reports suggest that vaccine industry demand in 2025 remains weak, competition is worsening, and short-term performance is under significant pressure.

While the domestic vaccine industry faces a downward trend, Watson Biological is also expanding internationally. The 2025 forecast states that revenue from overseas vaccine products continues to grow, with export vaccine revenue increasing about 35% year-on-year. The company’s mid-year report for 2025 shows that by the first half of 2025, Watson Biological had exported vaccines to 24 countries across Southeast Asia, South Asia, Central Asia, Africa, and the Americas.