#China #Veterinary Vaccines #Jilin #Zhengye Biotech #Nasdaq ZYBT

Zhengye Biotechnology Holding Limited Announces Fiscal Year 2024 Financial Results

On July 3, 2025, Zhengye Biotechnology Holding Limited (Nasdaq: ZYBT), a key player in the veterinary vaccine industry, revealed its financial outcomes for fiscal year 2024—an important year characterized by strategic adjustments amid fluctuating market conditions.

Transformative Year for Zhengye
The company’s co-CEO, Mr. Songlin Song, stated that FY 2024 marked a pivotal period for Zhengye, highlighting strategic realignments meant to diversify their customer base and mitigate risks tied to major clients. It also involved a cautious reduction in swine vaccine sales, emphasizing a shift to a more balanced customer portfolio aimed at enhancing long-term sustainability despite the pressures brought on by global uncertainties and a challenging domestic environment.

Mr. Aiden Han, co-CEO alongside Song, underscored the necessity of innovation and research and development as a means of fostering sustainable growth. During the year, Zhengye successfully ventured into China's burgeoning pet vaccine market, completing clinical trials for new vaccines targeting cats and dogs—an area Mr. Han identifies as a crucial growth segment moving forward. Additionally, Zhengye proudly received two Category I New Veterinary Drug Certificates from the Ministry of Agriculture and Rural Affairs, substantively validating its research capabilities.

Financial Overview
In the financial realm, Zhengye reported a net revenue of RMB 186.4 million (approximately USD 25.5 million), reflecting a 12% decline from RMB 211.7 million in FY 2023. The drop was primarily attributed to deliberate adjustments in the swine vaccine segment aimed at diminishing concentration risks with key customers. Gross profit plummeted to RMB 91.3 million (USD 12.5 million), yielding a gross margin of 49%, down from the previous year’s 55.5%. Total operating expenses rose slightly to RMB 74.9 million (USD 10.3 million), highlighting increasing sales and marketing costs as Zhengye invests in relationship building and market promotion.

Long-Term Financial Strategy
Although the short-term impacts of their strategic measures have been pronounced, Zhengye’s leadership is confident in the long-term advantages such actions will yield. The company sees its commitment to quality, innovation, and market expansion as foundational to delivering sustained value to its stakeholders. Currently, the business emphasizes global distribution network enhancements as an integral part of its long-term strategy following a successful Nasdaq listing, broadening its sales horizons beyond domestic markets and investing in developing safer and more innovative veterinary products.

The total operating expenses, inclusive of direct costs for sales and marketing, were RMB 74.9 million (USD 10.3 million), up slightly from RMB 72.5 million in FY 2023. The increase, predominantly due to investments in payroll for sales staff and marketing efforts, reflects Zhengye’s determination to bolster its competitive positioning through enhanced visibility and stronger customer relationships.

Operating Income and Net Results
For FY 2024, net income stood at RMB 13.5 million (USD 1.8 million). Compared to RMB 37.5 million from the previous year, this reduction highlights the impact of strategic realignments as the firm undertakes essential changes to its market approach. Basic and diluted earnings per share for FY 2024 settled at RMB 0.25 (USD 0.03), dropping from RMB 0.69 recorded for FY 2023.

Future Perspectives
Looking ahead, Zhengye’s roadmap appears robust; it recognizes the challenges ahead but maintains optimism driven by recent advancements in product portfolios and market diversification efforts. With ongoing R&D initiatives and a burgeoning presence in the rapidly evolving pet vaccine industry, the company is well-positioned to capture emerging opportunities and respond adaptively to changes in the veterinary vaccine market landscape.

Conclusion
In conclusion, while FY 2024 posed numerous challenges for Zhengye Biotechnology, the company's strategic foresight in evolving its sales practices and diversifying its product offerings signals a proactive approach to sustaining long-term growth. The enhancements to its veterinary vaccine portfolio and the receipt of prestigious industry certifications further bolster Zhengye's reputation, paving the way for significant industry influence in the future. Stakeholders should watch for substantial developments as Zhengye embarks on its mission to establish itself as a leading global supplier of veterinary vaccines, harnessing the potential of innovation and strategic market positioning to ensure resilience and growth in the years to come.