Zhengye Biotechnology Holding Limited Announces Fiscal Year 2025 Financial Results

JILIN, China,April 28, 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 financial results for the fiscal year ended December 31, 2025.

Mr. Songlin Song, co-chief executive officer of Zhengye, remarked, "Fiscal year 2025 was a year of resilience for Zhengye. While the broader hog market experienced low and volatile price fluctuations and government macro-control policies contributed to near-term pressure on swine vaccine demand, we remained focused on executing our strategy and driving long-term value creation. We are encouraged by the continued growth in our other vaccines segment, particularly vaccines for sheep, which contributed to improving our revenue mix. On the international front, we made progress in advancing vaccine registrations in certain overseas markets, including Egypt, Pakistan, and Vietnam, supporting our long-term expansion strategy."

"We continued to prioritize research and development as a core driver of our future growth. In 2025, we achieved several regulatory milestones, including the approval of two National Category I New Veterinary Drugs and one National Category III New Veterinary Drug from the Ministry of Agriculture and Rural Affairs. We also secured new product approvals across multiple animal species, including swine, poultry, cattle, and sheep, further broadening our commercial offerings. We believe these achievements reflect our ongoing innovation efforts and support our long-term growth strategy."

Mr. Aiden Han, co-chief executive officer of Zhengye, added, "With our Nasdaq listing, we further strengthened our capital base and financial position, providing a foundation to support our strategic priorities. We ended the year with a stronger cash position of RMB50.3 million, representing an increase from the prior year, which is expected to enhance our ability to invest in research and development, expand our product portfolio, and support future growth initiatives."

"Looking ahead, we are encouraged by early signs of a gradual recovery in China's swine market, with industry expectations pointing to a potential price inflection point around mid-year in 2026. We aim to deepen strategic customer engagement, strengthen our product portfolio, expand our customer service ecosystem, and selectively pursue opportunities in the companion animal sector as a new growth driver. We believe these initiatives, together with our operational foundation, will support our ability to navigate industry cycles. We are grateful for the support of our shareholders, customers, and partners, and remain committed to building on our progress as we navigate this period and lay a foundation for Zhengye's long-term growth."

• Net revenue was RMB116.4 million (US$16.6 million) in the fiscal year ended December 31, 2025, compared to RMB186.4 million in the fiscal year ended December 31, 2024.

• Gross profit was RMB23.9 million (US$3.4 million) in the fiscal year ended December 31, 2025, compared to RMB91.3 million in the fiscal year ended December 31, 2024.

• Gross profit margin was 20.5% in the fiscal year ended December 31, 2025, compared to 49.0% in the fiscal year ended December 31, 2024.

• Total operating expenses were RMB94.4 million (US$13.5 million) in the fiscal year ended December 31, 2025, compared to RMB74.9 million in the fiscal year ended December 31, 2024.

• Net loss was RMB83.0 million (US$11.9 million) in the fiscal year ended December 31, 2025, compared to net income of RMB13.5 million in the fiscal year ended December 31, 2024.

• Basic and diluted loss per share was RMB1.47 (US$0.21) in the fiscal year ended December 31, 2025, compared to basic and diluted earnings per share of RMB0.25 in the fiscal year ended December 31, 2024.

Net revenue was RMB116.4 million (US$16.6 million) in the fiscal year ended December 31, 2025, representing a decrease of 37.6% from RMB186.4 million in the fiscal year ended December 31, 2024.

Swine vaccines

157,789

84.7

90,143

12,890

77.5

Poultry vaccines

15,506

8.3

12,480

1,785

10.7

Other vaccines

13,061

7.0

13,739

1,964

11.8

• Revenue from sales of swine vaccines was RMB90.1 million (US$12.9 million) in the fiscal year ended December 31, 2025, decreased from RMB157.8 million in the fiscal year ended December 31, 2024. This decrease was primarily driven by a downturn in the hog market in 2025, characterized by low and volatile prices. Additionally, government macro-control policies aimed at reducing the inventory of productive sows to alleviate periodic oversupply contributed to the reduced demand for swine vaccines.

• Revenue from sales of poultry vaccines was RMB12.5 million (US$1.8 million) in the fiscal year ended December 31, 2025, decreased from RMB15.5 million in the fiscal year ended December 31, 2024. The decrease was primarily due to normal market fluctuations.

• Revenue from sales of other vaccines was RMB13.7 million (US$2.0 million) in the fiscal year ended December 31, 2025, increased from RMB13.1 million in the fiscal year ended December 31, 2024. The increase in sales of other vaccines was caused by the increased sales of the vaccines for sheep.

Cost of revenue was RMB92.5 million (US$13.2 million) in the fiscal year ended December 31, 2025, representing a decrease of 2.7% from RMB95.1 million in the fiscal year ended December 31, 2024. The decrease was mainly due to the decrease in the cost of swine vaccines.

Gross profit was RMB23.9 million (US$3.4 million) in the fiscal year ended December 31, 2025, decreased from RMB91.3 million in the fiscal year ended December 31, 2024.

Gross profit margin was 20.5% in the fiscal year ended December 31, 2025, decreased from 49.0% in the fiscal year ended December 31, 2024, mainly due to the lower sales price and unchanged fixed cost.

Total operating expenses were RMB94.4 million (US$13.5 million) in the fiscal year ended December 31, 2025, increased from RMB74.9 million in the fiscal year ended December 31, 2024.

• Sales and marketing expenses were RMB43.9 million (US$6.3 million) in the fiscal year ended December 31, 2025, increased from RMB41.3 million in the fiscal year ended December 31, 2024. The increase in sales and marketing expenses was primarily due to higher payroll for sales staffs, and increased advertising expenses and entertainment, partially offset by a decrease in marketing promotion expenses.

• General and administrative expenses were RMB31.0 million (US$4.4 million) in the fiscal year ended December 31, 2025, increased from RMB22.6 million in the fiscal year ended December 31, 2024. The increase in general and administrative expenses was attributed to the increase in professional technical services and in depreciation and amortization.

• Research and development expenses were RMB18.0 million (US$2.6 million) in the fiscal year ended December 31, 2025, increased from RMB12.8 million in the fiscal year ended December 31, 2024. The increase in research and development expenses mainly resulted from an increase in research and development projects, which led to an increase in materials.

Net loss was RMB83.0 million (US$11.9 million) in the fiscal year ended December 31, 2025, compared to net income of RMB13.5 million in the fiscal year ended December 31, 2024.

Basic and diluted loss per share was RMB1.47 (US$0.21) in the fiscal year ended December 31, 2025, compared to basic and diluted earnings per share of RMB0.25 in the fiscal year ended December 31, 2024.

As of December 31, 2025, the Company had cash of RMB50.3 million (US$7.2 million), compared to RMB18.6 million as of December 31, 2024.

Net cash provided by operating activities was RMB13.3 million (US$1.9 million) in the fiscal year ended December 31, 2025, compared to RMB41.0 million in the fiscal year ended December 31, 2024.

Net cash used in investing activities was RMB12.6 million (US$1.8 million) in the fiscal year ended December 31, 2025, compared to RMB27.7 million in the fiscal year ended December 31, 2024.

Net cash provided by financing activities was RMB32.3 million (US$4.6 million) in the fiscal year ended December 31, 2025, compared to net cash used in financing activities of RMB22.1 million in the fiscal year ended December 31, 2024.

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 RMB6.9931 to US$1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 31, 2025.

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 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 tenure and experience in the veterinary vaccine industry. For more information, please visit the Company's website:http://ir.jlzybio.com.

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.

Cash

18,604

50,332

7,197

Restricted cash

2

2

-

Short-term investments

1,433

1,560

223

Notes receivable, net

25,592

-

-

Accounts receivable, net

59,563

18,485

2,643

Advance to suppliers

10,788

2,208

316

Inventories, net

58,220

39,166

5,601

Prepayments and other current assets, net

2,626

25,667

3,670

Other receivable-a related party

738

-

-

Property, plant and equipment, net

255,164

236,812

33,863

Land use rights, net

7,930

7,673

1,097

Intangible assets, net

14,850

47,084

6,732

Right-of-use assets, net

-

469

67

Long-term prepayments

18,698

7,014

1,003

Deferred IPO expenses

8,048

-

-

Net deferred tax assets

10,991

-

-

Short-term loans

74,443

65,100

9,309

Current maturities of long-term loans

7,190

700

100

Operating lease liability-current

-

106

15

Accounts payable

42,960

44,010

6,296

Contract liabilities

3,485

4,752

680

Taxes payable

2,066

2,345

335

Amount due to related parties

146

-

-

Accrued expenses and other liabilities

5,617

3,463

495

Long-term loans

4,800

8,850

1,266

Operating lease liability-non-current

-

327

47

Deferred tax liabilities

-

104

15

Class A ordinary shares (US$0.000025 par value; 1,900,000,000shares authorized; 5,666,376 and 7,391,376 shares issued andoutstanding as of December 31, 2024 and 2025, respectively)*

1

1

-

Class B ordinary shares (US$0.000025 par value; 100,000,000shares authorized; 40,000,000 and 40,000,000shares issued andoutstanding as of December 31, 2024 and 2025, respectively)*

7

7

1

Additional paid-in capital

203,150

240,752

34,427

Statutory reserves

32,647

32,647

4,668

Retained earnings (deficit)

48,151

(21,633)

(3,099)

Accumulated other comprehensive income

3

(1,926)

(275)

Total Zhengye Biotechnology Holding Limited's shareholders' equity

Noncontrolling interests

68,581

56,867

8,132

* As of December 31, 2025, share reclassification was retroactively restated with effective date of March 24, 2026

211,651

186,356

116,362

16,639

Cost of revenues

(94,143)

(95,061)

(92,493)

(13,227)

117,508

91,295

23,869

3,412

Sales and marketing expenses

(40,743)

(41,269)

(43,918)

(6,280)

General and administrative expenses

(23,592)

(22,575)

(31,006)

(4,434)

Research and development expenses

(11,901)

(12,794)

(18,013)

(2,576)

Reversal of (provision for) credit losses

3,714

1,782

(1,438)

(206)

(72,522)

(74,856)

(94,375)

(13,496)

44,986

16,439

(70,506)

(10,084)

Interest income

312

231

96

14

Interest expense

(4,423)

(4,043)

(3,400)

(486)

Unrealized gains on short-term investments

-

209

127

18

Unrealized foreign exchange gain (loss)

-

679

(312)

(45)

Government subsidy

2,653

733

2,252

322

Other expenses (income)

234

146

(130)

(19)

Total other expenses, net

(1,224)

(2,045)

(1,367)

(196)

43,762

14,394

(71,873)

(10,280)

Income tax expenses

(6,253)

(924)

(11,095)

(1,587)

37,509

13,470

(82,968)

(11,867)

Net (income) loss attributable to noncontrollinginterests

(6,052)

(2,159)

13,184

1,885

31,457

11,311

(69,784)

(9,982)

Net income (loss)

37,509

13,470

(82,968)

(11,867)

Foreign currency translation adjustment

-

3

(1,929)

(275)

37,509

13,473

(84,897)

(12,142)

Total comprehensive (income) loss attributable tonon-controlling interest

(6,052)

(2,159)

13,184

1,885

31,457

11,314

(71,713)

(10,257)

-Basic and diluted – Class A Ordinary shares

0.69

0.25

(1.47)

(0.21)

-Basic and diluted – Class B Ordinary shares

0.69

0.25

(1.47)

(0.21)

Ordinary shares – basic and diluted

45,666,376

45,666,376

47,349,869

47,349,869

Basic and diluted – Class A Ordinary shares*

5,666,376

5,666,376

7,349,869

7,349,869

Basic and diluted – Class B Ordinary shares*

40,000,000

40,000,000

40,000,000

40,000,000

* As of December 31, 2025, share reclassification was retroactively restated with effective date of March 24, 2026.

Net income (loss)

37,509

13,470

(82,968)

(11,867)

Adjustments to reconcile net income (loss) to net cashprovided by operating activities:

Depreciation and amortization

23,912

24,163

25,883

3,702

Amortization of operating lease right-of-use assets

-

-

72

10

Provision for (reversal of) credit losses

(3,714)

(1,782)

1,438

206

Impairment for inventory

10,026

5,962

12,801

1,831

Loss on disposal of property and equipment

187

174

-

-

Deferred tax expenses

541

924

11,095

1,587

Unrealized gains on short-term investments

-

(209)

(127)

(18)

Unrealized foreign exchange (gain) loss

-

(679)

312

45

Changes in operating assets and liabilities:

Notes receivable

8,310

(3,752)

20,962

2,998

Accounts receivable

31,044

16,345

39,709

5,678

Advance to suppliers

(619)

(7,677)

1,979

283

Inventories

(12,902)

(5,882)

6,252

894

Prepayments and other current assets

(563)

(1,283)

(23,306)

(3,333)

Other receivable-a related party

(738)

-

738

106

Operating leases liabilities

-

-

(108)

(15)

Accounts payable

(35,613)

(404)

(3,362)

(478)

Taxes payable

(7,702)

(229)

279

40

Contract liabilities

(715)

(400)

1,267

182

Accrued expense and other liabilities

(582)

2,698

417

60

Other payables – non-current

(197)

(393)

-

-

48,184

41,046

13,333

1,911

Loans to related party

-

-

(7,000)

(1,001)

Repayment of lending to related party

-

-

7,000

1,001

Purchase of short-term investments

(1,224)

-

-

-

Purchase of property, plant and equipment

(7,396)

(13,587)

(1,008)

(144)

Prepayment for purchase of intangible assets

(4,204)

(14,186)

(11,622)

(1,662)

Proceeds from disposal of property, plant andequipment

1,059

108

-

-

(11,765)

(27,665)

(12,630)

(1,806)

Proceeds from loans

79,860

90,122

70,468

10,077

Repayment of loans

(54,890)

(92,860)

(82,562)

(11,806)

Repayment of related parties

-

-

(146)

(20)

Proceeds from related parties

-

146

-

-

Dividend payment to shareholders

(39,452)

(16,023)

-

-

Deferred IPO expenses

(4,497)

(3,514)

-

-

Proceeds from initial public offering

-

-

43,080

6,160

Shareholder contribution

-

-

1,470

210

(18,979)

(22,129)

32,310

4,621

Effect of exchange rate changes on cash

-

168

(1,285)

(190)

Net increase (decrease) in cash and restricted cash

17,440

(8,580)

31,728

4,536

Cash and restricted cash at beginning of year

9,746

27,186

18,606

2,661

27,186

18,606

50,334

7,197

Cash paid for:

Interest

4,423

3,985

3,356

480

Income taxes

10,486

116

-

-

Liabilities assumed in connection with purchase ofproperty, plant and equipment

2,345

8,633

1,101

157

Liabilities assumed in connection with purchase ofintangible asset

-

-

3,602

515

Right of use assets obtained in exchange for operatinglease obligation

-

-

541

77

Reclassification of IPO expenses into additional paid-incapital

-

-

8,663

1,239

SOURCE Zhengye Biotechnology Holding Limited