Zhengye Biotechnology Holding Limited Announces Fiscal Year 2024 Financial Results
Thursday, 3 July 2025 ()
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 **E**xpenses*
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: ir@jlzybio.com
*Ascent Investor Relations LLC
*Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com
*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$0.000025 par value; 2,000,000,000 shares
authorized; 45,666,376 shares issued and outstanding as of
December 31, 2023 and 2024)*
8
8
1
Additional paid-in capital
203,150
203,150
27,832
Statutory reserves
31,311
32,647
4,473
Retained earnings
38,381
48,151
6,597
Accumulated other comprehensive income
—
3
—
Total Zhengye Biotechnology Holding Limited's shareholders'
equity
272,850
283,959
38,903
Noncontrolling interests
66,422
68,581
9,398
*Total equity*
339,272
352,540
48,301
*Total liabilities and equity*
499,888
493,247
67,577
*
Retroactively adjusted for effect of a 4-for-1 forward split on June 6, 2024.
*ZHENGYE BIOTECHNOLOGY HOLDING LIMITED*
*CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME*
*(Amounts in thousands of RMB and US$, 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 Biotechnology Holding Limited's shareholders*
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 non-controlling interest
(9,007)
(6,052)
(2,159)
(296)
*Total comprehensive income attributable to the Zhengye Biotechnology Holding Limited's shareholders*
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 calculating basic and diluted earnings per share:*
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 provided by operating activities:
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 equipment
—
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 FLOW INFORMATION:*
Cash paid for:
Interest
2,839
4,423
3,985
546
Income taxes
8,481
10,486
116
16
*NON-CASH INVESTING AND FINANCING ACTIVITIES:*
Liabilities assumed in connection with purchase of property, plant and equipment
11,379
2,345
8,633
1,183
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