Zhengye Biotechnology Holding Limited Announces Fiscal Year 2024 Financial Results

PR Newswire

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: [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 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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SOURCE Zhengye Biotechnology Holding Limited