Watson Bio plans a 2 billion yuan private placement to introduce a new controlling shareholder. Fujian businessman Huang Tao may end the company's 16-year "ownerless" status | Quick read of the announcement

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Caixin News, March 19 — (Reporter Wu Chao) Watson Bio (300142.SZ), a vaccine company listed for nearly 16 years, is about to welcome its first actual controller since going public.

The company announced last night that it plans to introduce Beijing Tengyun New Wo Biological Technology Partnership (referred to as “Tengyun New Wo”) as a controlling shareholder through a targeted share issuance. After the transaction, Huang Tao, the actual controller of Tengyun New Wo, will become the company’s actual controller.

According to the announcement, Watson Bio has planned a series of combined operations to bring in a controlling shareholder. The company intends to issue no more than 208 million shares to Tengyun New Wo at a price of 9.63 yuan per share, raising up to 2.003 billion yuan. After deducting issuance costs, all funds will be used to supplement working capital. Compared to the pre-suspension closing price of 12.28 yuan per share, the issuance price is a 21.6% discount, based on a valuation that is no less than 80% of the average trading price of the company’s stock over the 20 trading days prior to the pricing date.

After this issuance, Tengyun New Wo will hold 11.51% of Watson Bio. To further secure control, Tengyun New Wo has also signed a “Joint Investment and Consistent Action Agreement” with multiple shareholders, including Watson Bio’s founder Li Yunchun, agreeing to act in concert on major company decisions. Tengyun New Wo and the concerted parties will hold a total of 14.46% of the shares, with this concerted action valid for seven years.

Additionally, at the board level, Tengyun New Wo will nominate four non-independent directors and two independent directors, holding the majority of nine director seats. The remaining shareholders’ voting rights are relatively dispersed, creating favorable conditions for Huang Tao’s team to control the company’s governance structure.

For Watson Bio, this change of control is a milestone. Since its listing on the Shenzhen Stock Exchange ChiNext in 2010, Watson Bio has long operated without a controlling shareholder or actual controller. As of the third quarter of 2025, the company’s largest shareholder, E Fund ChiNext ETF, held only 2.16%, and founders Liu Junhui and Li Yunchun directly held only 1.81% and 1.70%, respectively.

The new actual controller, Huang Tao, is no stranger to the capital markets. The targeted issuance object, Tengyun New Wo, was established as a limited partnership on February 12, 2026. Huang Tao indirectly holds 60% of Tengyun New Wo through Century Golden Source Investment Group Co., Ltd. (referred to as “Century Golden Source”). Public information shows that Huang Tao is a well-known Fujian businessman and the eldest son of Huang Rulun, founder of Century Golden Source, and currently serves as its president. In March 2026, Huang Rulun and Huang Tao’s family ranked 871st on the “2026 Hurun Global Rich List” with a wealth of 35.5 billion yuan.

In recent years, Huang Tao has been active in the A-share market. In February 2022, he gained control of Wutong Technology (002331.SZ) through Tibet Jingyuan Enterprise Management Co., Ltd., marking his first A-share listed company. In June 2025, he acquired a 13.03% stake in Annor (a children’s clothing company) through Shenzhen Xinchuyuan Investment Partnership, becoming its actual controller. With this move into Watson Bio via Tengyun New Wo, Huang Tao will control his third A-share listed company, expanding his portfolio from smart transportation and children’s clothing into biomedicine.

As a major domestic vaccine producer, Watson Bio is also facing industry cycle challenges. According to the company’s earnings forecast, the overall domestic and international vaccine markets are still in a downward cycle. The company expects vaccine product revenue in 2025 to decline by about 8% year-on-year, and net profit attributable to the parent to decrease by 9% to 22%. Whether the governance stability and resource synergy brought by the new controller can translate into tangible performance growth remains to be seen.