Second-generation Fujianese entrepreneur invests 2 billion yuan to take control! Watson Biotech will welcome its first actual controller, with vaccine revenue down 8% last year.

Listed for 16 years, China’s leading private vaccine company Watson Bio welcomes its first actual controller.

On the evening of March 18, Yunnan Watson Biotechnology Co., Ltd. (Watson Bio, 300142) announced that it plans to issue no more than 208 million A-shares to specific investors, Beijing Tengyun New Wo Biological Technology Partnership (Limited Partnership) (referred to as “Tengyun New Wo”). The issuance price is 9.63 yuan per share, with a subscription amount not exceeding 2.003 billion yuan.

Watson Bio Shareholding Changes

Founded in 2001, Watson Bio was listed on the Shenzhen Stock Exchange in 2010 and has long operated without a controlling shareholder, actual controller, or shareholders holding more than 5%. After this issuance, assuming no other factors affect the share capital, Tengyun New Wo will hold an 11.51% stake based on the number of shares issued, becoming the company’s controlling shareholder. Huang Tao, the actual controller of Tengyun New Wo, will become the company’s actual controller, marking the first clear actual controller since Watson Bio’s listing.

Additionally, the announcement shows that, aside from Tengyun New Wo and its concerted parties holding 14.46% of voting rights, the remaining shareholders’ voting rights are relatively dispersed. After this issuance, the company’s board will have nine directors, including three independent directors. Tengyun New Wo will nominate four non-independent directors and two independent directors, constituting more than half of the board.

Tengyun New Wo was established on February 12, 2026. Tengyun Great Health holds 79.99%, and Century Golden Source fully owns Tengyun Great Health, with Huang Tao holding 60% of Century Golden Source’s shares.

Watson Bio Shareholding Structure

According to official information, Century Golden Source Group was founded in 1991 and is a comprehensive cross-industry international enterprise group. By 2025, it has invested 400 billion RMB in mainland China and operates in four main sectors: consumer goods, cultural tourism, healthcare, and new technology. In the healthcare sector, Tengyun Great Health under Century Golden Source offers three major service platforms: Tengyun Family Medical, Tengyun Specialty, and Tengyun Elderly Care. Tengyun Family Medical focuses on healthcare services, investing in or operating hospitals and community-based brands such as Tengyun Family Medical Hospital, Neighbor Good Doctor, Sennuo Health, Weikai Health Management, and Songyang Medical.

Public information shows that Huang Tao, born in 1976, is the eldest son of Huang Rulun, the well-known Min businessman and founder of Century Golden Source Group. After taking over in 2018, he has been pushing for the company’s transformation. In June 2025, Huang Tao acquired a 13.03% stake in Anniel, known as the “first stock of children’s clothing,” for 422 million RMB, becoming its actual controller. His becoming the actual controller of Watson Bio also indicates Century Golden Source’s entry into the vaccine business.

Business-wise, Watson Bio currently independently develops and produces eight vaccine products with 14 specifications, covering pneumonia vaccines, meningitis vaccines, HPV vaccines, Hib vaccines, and DTaP vaccines. The 2024 financial report states that Watson Bio is currently the only Chinese vaccine company with its own products covering the top three global vaccine varieties. The 2025 earnings forecast shows that Watson Bio expects to achieve operating revenue of 2.4 to 2.43 billion RMB in 2025, compared to 2.821 billion RMB in the same period last year; net profit attributable to shareholders of the parent company is projected to be 160 million to 190 million RMB, a year-on-year increase of 13%-34%; non-recurring net profit is estimated at 85 million to 99 million RMB, down 9%-22% year-on-year; and non-operating gains and losses are about 80 million RMB, compared to 33.76 million RMB last year.

Regarding the performance change in 2025, Watson Bio stated that during the reporting period, the overall domestic and international vaccine markets remained in a downward cycle, with the company’s total vaccine revenue decreasing by about 8% year-on-year. The revenue from domestic vaccine products narrowed and stabilized, while foreign vaccine revenue continued to grow, with export vaccine revenue increasing by approximately 35% compared to the previous year. The company has continuously strengthened cost reduction and efficiency improvement measures, enhancing operational management, which contributed to a year-on-year increase in net profit attributable to shareholders.

Watson Bio has been suspended from trading since March 17. On the first trading day after resumption, March 19, the stock price rose more than 3% intraday. At the close on March 19, Watson Bio was at 12.39 yuan per share, up 0.9%, with a market capitalization of 19.816 billion yuan. As of the midday trading on March 20, Watson Bio increased by 0.32%.