Ringpu Biology (300119)

Equity Research Report | Sector: Veterinary Drug Manufacturing, Animal Health | Report Date: September 13, 2026 | Data as of the close on September 11, 2026; certain technical indicators are approximate calculations based on publicly available historical closing prices

This report is automatically compiled and generated by AI based on public information and is for reference only. It does not constitute investment advice.

1. Core Summary

Ringpu Biology achieved operating revenue of RMB 3.398 billion in 2025, up 10.70% year-on-year, with net profit attributable to shareholders of RMB 401 million, up 33.18% year-on-year. However, in the first half of 2026, revenue grew only 0.75% year-on-year to RMB 1.720 billion, net profit attributable to shareholders declined 20.43% year-on-year to RMB 204 million, and net profit attributable to shareholders after deducting non-recurring items declined 1.81% year-on-year. The company's current core contradiction is that after the 2025 earnings recovery, revenue growth slowed markedly and profit came under pressure in the first half of 2026, and whether full-year institutional forecasts can be realized still depends on livestock and poultry animal health demand and profitability improvement in the second half.

The company's business covers veterinary biological products, pharmaceutical preparations and API, functional additives, epidemic control services, and pet medical supply chain. In 2025, biological products revenue was RMB 1.475 billion with a gross margin of 63.71%, serving as the main profit source; pharmaceutical preparations and API revenue was RMB 1.050 billion with a gross margin of 35.34%, with gross margin continuing to decline; pet supply chain revenue was RMB 782 million with a gross margin of 14.91%, growing rapidly but with relatively low profitability. Business diversification helps expand growth space, but the rising share of low-gross-margin pet supply chain may exert pressure on the overall profit margin.

The company has a relatively rich pipeline of R&D and new business reserves: the porcine epidemic diarrhea mRNA vaccine has completed clinical trials and is advancing new veterinary drug registration application, while the feline infectious peritonitis mRNA vaccine is still in the clinical stage; the ten-thousand-ton microbial protein industrialization base is planned to be completed and enter trial production by the end of 2026, and related products have not yet been formally put into production or sold on a large scale. The pet segment generated revenue of approximately RMB 479 million in the first half of 2026, up 15.43% year-on-year, and the shareholding ratio in Tianjin Zhongrui Supply Chain was increased to 86%, but the contribution of new products, new capacity, and M&A integration to performance remains uncertain.

As of September 11, 2026, the company's stock price closed at RMB 17.23, below MA5, MA10, and MA20, retracing approximately 13.2% from the mid-August high, with short-term technicals leaning weak. RMB 17.0–17.3 is the first support reference zone, RMB 16.6–16.9 is a stronger support area, and RMB 18.0–18.3 is the short-term resistance zone. Based on market consensus forecasts, the dynamic P/E ratios for 2026–2028 are approximately 17.9x, 14.2x, and 11.5x, but the company's current TTM valuation is in the upper range of its own history, and the decline in forward valuation depends on institutional forecast profit being realized.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Veterinary biological products, including poultry vaccines, livestock vaccines, and pet vaccines
• Veterinary pharmaceutical preparations and API, including chemical drugs, traditional Chinese veterinary medicine, disinfectants, and cleaning agents
• Veterinary functional additives
• Integrated animal disease prevention and control solutions, including testing and diagnosis, epidemic monitoring, immunization program design, and breeding management services
• Pet medical supply chain and related services, including pet drugs, vaccines, diagnostic and treatment equipment, and related supplies
• 2025 business segment revenue: biological products RMB 1.475 billion, accounting for 43.40%, gross margin 63.71%; pharmaceutical preparations and API RMB 1.050 billion, accounting for 30.90%, gross margin 35.34%; pet supply chain RMB 782 million, accounting for 23.00%, gross margin 14.91%; epidemic control services RMB 70 million, accounting for 2.06%

2.3 Position in the Industry Chain Upstream and Downstream and Cost-Profit Structure

Ringpu Biology is positioned in the midstream of the animal health industry chain, with business covering vaccines, veterinary chemical drugs, API, pet medical supply chain, and animal disease prevention and control services. It has gradually extended from simply selling veterinary drug products to integrated animal health services encompassing "products + testing and diagnosis + epidemic monitoring + breeding management + supply chain."

• Biological products mainly procure bacterial and viral seeds, cell culture-related materials, culture media, adjuvants, protective agents, antigen purification materials, and packaging materials; chemical pharmaceutical preparations and API mainly procure chemical intermediates, API synthesis materials, solvents, excipients, and packaging materials; the company also procures production equipment, laboratory instruments, testing consumables, engineering services, and pet medical products.
• In 2025, raw materials accounted for 54.31% of the operating cost of the biological products business, and raw materials accounted for 81.61% of the related operating cost of pharmaceutical preparations and API; chemical pharmaceutical preparations and API are more sensitive to raw material prices, procurement scale, and supply security.
• The company implements centralized group procurement, uniformly managing raw materials, auxiliary materials, packaging materials, engineering services, equipment and instruments, and consumables, and manages them through supplier screening, small-scale trials, pilot-scale trials, rating, and auditing procedures.
• In 2025, procurement from the top five suppliers amounted to RMB 521 million, accounting for 31.89% of total annual procurement; the largest supplier accounted for 12.18%, and none of the top five suppliers involved related-party procurement.
• For ordinary chemical raw materials, packaging materials, and general excipients, the company has advantages in centralized group procurement and large-scale procurement; for high-tech biological product raw and auxiliary materials, imported pet drugs, and specialized equipment, the company is more of a price taker. The annual report does not disclose all supplier names and specific procurement categories, making it impossible to judge the degree of single-supplier dependence for any particular raw material.
• Downstream customers include large-scale breeding groups and scaled farms, small and medium-sized farms and distributors, government mandatory immunization vaccine procurement systems, pet hospitals and pet stores, overseas agents, and overseas breeding and veterinary customers.
• In 2025, direct sales revenue was RMB 2.353 billion, accounting for 69.23%; distribution revenue was RMB 750 million, accounting for 22.08%; government tender revenue was RMB 169 million, accounting for 4.96%; international business revenue was RMB 127 million, accounting for 3.73%.
• In 2025, the combined sales of the top five customers amounted to RMB 464 million, accounting for 13.65% of total annual sales; the largest customer accounted for 4.86%, and the second-largest customer accounted for 3.21%. This data is disclosed in the 2025 annual report for the single fiscal year, with some customer names anonymized; please refer to the latest annual report for specifics.
• The second-largest customer is Ruipai Pet Hospital, in which the company directly holds approximately 9.09% equity; the related sales have industrial synergy significance, while related-party transaction and tunneling risks also need attention.
• After the concentration of large-scale breeding groups increased, they can压低 product prices through tendering, framework procurement, and long-term cooperation; ordinary chemical drugs and some conventional vaccines have a high degree of homogeneity, with competition more reflected in price, channels, and services; the price and procurement pace of government-tendered vaccines are greatly affected by policy. The company enhances customer stickiness through epidemic monitoring, testing and diagnosis, immunization program design, biosafety system construction, and breeding cost management.
• In 2025, cash received from sales of goods and provision of services was RMB 3.421 billion, higher than operating revenue of RMB 3.398 billion; net cash flow from operating activities was RMB 298 million, down 59.55% year-on-year. The company's annual report summary does not directly disclose accounts receivable turnover days, and this memo did not further calculate the ratio of accounts receivable to revenue, making it impossible to precisely judge payment terms based on this. Existing evidence shows that the company's customer side is relatively dispersed, supplier concentration is higher than customer concentration, and the decline in operating cash flow suggests that capital occupation, inventory, taxes, or other operating income and expenditure changes in the industry chain still need to be tracked.
• Supplier concentration is higher than customer concentration: in 2025, the top five suppliers accounted for 31.89% of procurement and the largest supplier accounted for 12.18%; during the same period, the top five customers accounted for 13.65% of sales and the largest customer accounted for 4.86%. The above customer and supplier concentration data are all disclosed in the company's 2025 annual report, representing single-year official disclosure; customer names and specific supplier categories were not fully disclosed, making it impossible to judge deep dependence on a single product or single customer.

The company is located in the midstream of the animal health industry chain and is a "comprehensive animal health manufacturing + animal health services" enterprise, rather than an upstream resource-based or downstream consumer brand-based company. Profit margin is mainly driven by high-gross-margin vaccines and innovative products, and further improvement depends on increasing the share of high-value-added vaccines and pet drugs, upgrading chemical drug preparations, translating R&D achievements, growing epidemic control service revenue, and controlling raw material and production costs through centralized procurement and smart manufacturing.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

H1 2026 financial data comes from the company's disclosed 2026 semi-annual report; FY 2025 data comes from the company's annual report and related public information. H1 2026 net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 184 million, down 1.81% year-on-year; basic earnings per share was RMB 0.4495. FY 2025 net profit attributable to shareholders after deducting non-recurring items was approximately RMB 304 million, up 8.52% year-on-year.

In H1 2026, the company's operating revenue was basically stable, but net profit attributable to shareholders declined significantly, while the decline in net profit after deducting non-recurring items was relatively smaller, indicating that profit fluctuations may have been affected by non-recurring gains and losses, investment income, or other non-core items. During the same period, net cash flow from operating activities was RMB 194 million, up 43.04% year-on-year, and the weighted average return on equity was 4.27%, down 1.36 percentage points year-on-year. Pet business revenue was approximately RMB 479 million, up 15.43% year-on-year, remaining one of the faster-growing businesses; the livestock and poultry animal health business came under overall profit pressure due to factors such as breeding demand adjustments and VAT policy changes. Compared with FY 2025, the company in H1 2026 showed characteristics of low revenue growth, declining net profit attributable to shareholders, and relatively stable net profit after deducting non-recurring items. In the second half, close attention should be paid to livestock and poultry animal health demand, product prices, tax policies, and pet business growth.

3.2 Earnings Forecast

As of September 11, 2026, Tonghuashun F10 shows that within the past 6 months, a total of 16 institutions made forecasts for Ringpu Biology's 2026 performance. Institutional consensus forecasts show that 2026 operating revenue is expected to grow approximately 8.21% year-on-year, 2027 approximately 23.26% year-on-year, and 2028 approximately 21.67% year-on-year. The above data are consensus forecasts from institutional research reports, not company commitments or regulatory-disclosed performance guidance. Institutional forecasts differ: Huatai Securities forecasts 2026–2028 net profit attributable to shareholders of RMB 469 million, RMB 613 million, and RMB 785 million, with EPS of RMB 1.01, RMB 1.32, and RMB 1.69, respectively; Huaan Securities forecasts RMB 449 million, RMB 530 million, and RMB 685 million, with EPS of RMB 0.97, RMB 1.14, and RMB 1.47, respectively; Zheshang Securities forecasts RMB 454 million, RMB 581 million, and RMB 682 million, with EPS of RMB 0.98, RMB 1.25, and RMB 1.47, respectively; China Post Securities forecasts RMB 433 million, RMB 509 million, and RMB 606 million, with EPS of RMB 0.93, RMB 1.10, and RMB 1.30, respectively. With H1 2026 net profit attributable to shareholders down 20.43% year-on-year, achieving full-year institutional forecasts requires significant improvement in second-half performance.

3.3 Valuation Level and Institutional Ratings

As of September 11, 2026, the company's closing price was in the range of RMB 17.23–17.26, with total market capitalization of approximately RMB 8.0 billion; different market data sources show a difference of approximately RMB 0.03. Lixinger data shows that as of September 10, 2026, the stock price was RMB 17.82, total market capitalization was approximately RMB 8.282 billion, PE-TTM was 23.79x, PE-TTM historical percentile was approximately 80.17%, PB was approximately 1.76x, and dividend yield was approximately 2.19%; China Finance Network data for the same period shows PE of approximately 23.79x, PE excluding non-recurring items of approximately 27.50x, and PB of approximately 1.62x. Different platforms show differences in valuation data due to stock price timing, profit scope, and whether non-recurring gains and losses are deducted. Based on the closing price of approximately RMB 17.23 on September 11, 2026, and market consensus forecast EPS, the dynamic PE for 2026–2028 is approximately 17.9x, 14.2x, and 11.5x, respectively; based on current TTM EPS of approximately RMB 0.76, the static rolling PE is approximately 22.7x. If Huatai Securities' forecast EPS is used, the dynamic PE for 2026–2028 is approximately 17.1x, 13.1x, and 10.2x, respectively. Huatai Securities' target price of RMB 23.23 corresponds to potential upside of approximately 34.8%; the average early institutional target price of RMB 24.08 corresponds to potential upside of approximately 39.8%, but that statistic is from an earlier point in time; the 12-month average target price shown by Investing.com is RMB 20.41, corresponding to potential upside of approximately 18.5%, but the number of covering analysts is relatively small. The current TTM valuation is in the upper range of the company's own historical valuation, and whether the forward valuation can decline depends on whether future profits are realized according to institutional forecasts. Main uncertainties include: the large contrast between H1 2026 performance and full-year forecasts; differences in institutional judgments on new business contribution and profit elasticity; inconsistencies in target prices and valuation scopes across different platforms; time lags in stock price and PE data; and future institutional forecasts do not constitute company performance commitments.

4. Recent News and Announcements

4.1 Second Extraordinary Shareholders' Meeting of 2026 Held on September 11

Ringpu Biology held its second extraordinary shareholders' meeting of 2026 on September 11, 2026. No resolutions were voted down, and no changes were made to resolutions previously approved by shareholders' meetings. The meeting reviewed and approved the "Proposal on the Completion of Certain Fundraising Investment Projects" and the "Proposal on the Company and Its Subsidiaries Continuing to Conduct Asset Pool Business and Providing Guarantees." A total of 106 shareholders attended, representing 181,075,620 shares, accounting for 39.8786% of the company's total shares with voting rights. For the asset pool business and guarantee matters, subsequent attention should be paid to changes in asset pool scale, guarantee balance, and potential contingent liabilities.

4.2 Semi-Annual Report Performance Briefing Discloses mRNA Vaccine R&D Progress

The company held its 2026 semi-annual performance briefing through Panorama Network on September 3, 2026. The porcine epidemic diarrhea mRNA vaccine has completed clinical trials and is advancing new veterinary drug registration application; the feline infectious peritonitis mRNA vaccine is still in the clinical trial stage. The launch of both products still requires approval from competent authorities, and the specific timing of launch is uncertain.

4.3 Synthetic Biology Project Construction and Product Development Progress

The company disclosed that the ten-thousand-ton microbial protein industrialization base is progressing in an orderly manner, with civil construction of some workshops completed and equipment being brought in, and is planned to be completed and enter trial production by the end of 2026. The company has completed formula finalization for more than 80 mycelium protein application products, with some downstream customers in the trial stage; the related production lines have not yet been formally put into production, and large-scale external sales have not yet been carried out.

4.4 H1 2026 R&D Investment and Product Registration Progress

The company invested RMB 120 million in R&D in H1 2026, up 5.54% year-on-year; during the same period, it added 5 new veterinary drug registration certificates, was granted 15 patents, and obtained clinical approval for 9 products. The above information comes from the company's semi-annual performance briefing responses and is not entirely equivalent to products having achieved commercialization.

4.5 Pet Segment Discloses Information on Grapiprant and Ruipai Pet Hospital

The company stated that its self-developed grapiprant has obtained a Class II new veterinary drug certificate; Ruipai Pet Hospital is an associate company of the company, and related listing progress should be based on Ruipai's official information. The subsequent revenue realization and commercialization progress of new pet drugs remain uncertain.

4.6 Number of Shareholders and Equity Pledge Status

As of August 31, 2026, the company had 21,756 shareholders, a decrease of 204 from the previous period; this data comes from the East Money individual stock calendar. Data shows that as of September 11, 2026, the company's total equity pledge ratio was 12.97%, with total pledged shares of approximately 60.30 million shares and 4 pledge transactions; as of that date, no announcements of large new pledges or obvious pledge releases in September had been retrieved. It is recommended to further verify related data against China Securities Depository and Clearing Corporation or CNINFO announcements.

4.7 Two Avian Influenza Vaccines Pass Production Strain Change Filing Review

The company announced on August 31, 2026 that the recombinant duck plague virus vector bivalent live vaccine for avian influenza (H5 subtype, rDEV-15 strain + rDEV-16 strain) and the recombinant duck plague virus vector live vaccine for avian influenza (H5 subtype, rDEV-16 strain) passed the production strain change filing review organized by the Ministry of Agriculture and Rural Affairs. Before the related products are launched, veterinary drug product approval numbers still need to be obtained, and the short-term revenue contribution cannot yet be determined.

4.8 Director and General Manager Xu Lei Increases Holdings by 500,000 Shares

On June 16, 2026, director and general manager Xu Lei increased his holdings of company shares by 500,000 shares through block trades at an average transaction price of RMB 14.00 per share, with a transaction amount of approximately RMB 7 million, accounting for approximately 0.11% of the company's total share capital and approximately 0.15% of tradable shares. During the same period, Sheng Lina, a person acting in concert with shareholder Liang Wu who holds more than 5% of shares, transferred 500,000 shares to Xu Lei. This transaction plan has been completed, but the transaction scale is relatively small compared with the company's total share capital and cannot by itself be regarded as a material change in the company's fundamentals.

4.9 Completion of Industrial and Commercial Change for Acquisition of 30% Equity in Tianjin Zhongrui Supply Chain

The company reviewed and approved on June 10, 2026 the acquisition of 30% equity in Tianjin Zhongrui Supply Chain Management Co., Ltd. held by Ruipai Pet Hospital Management Co., Ltd., with a transaction amount of RMB 65.865 million; on June 22, 2026, it announced that the related industrial and commercial change registration had been completed. After the transaction, the company's shareholding ratio in Zhongrui Supply Chain increased from 56% to 86%, Ruipai Pet Hospital no longer directly holds equity in Zhongrui Supply Chain, and Qirui Enterprise Management (Tianjin) Partnership holds 14%.

4.10 Establishment of M&A Industry Fund

The company's 2026 semi-annual report disclosed that in February 2026, Ringpu Biology jointly established Jiangsu Guotai Haitong Ringpu M&A Industry Fund Partnership with relevant parties. The fund focuses on industrial investments in fields such as animal health, synthetic biology, pets, and biopharmaceuticals. As of September 13, 2026, no announcements of new major investments or specific M&A transactions formed by the M&A fund in September had been retrieved.

4.11 No New Performance Forecast Found as of September 13

As of September 13, 2026, no new performance forecast or performance warning announcement issued by the company in September 2026 had been found. The company's most recent important performance information is the 2026 semi-annual report: H1 operating revenue of RMB 1.720 billion, up 0.75% year-on-year; net profit attributable to shareholders of the listed company of RMB 204 million, down 20.43% year-on-year; net profit after deducting non-recurring gains and losses of RMB 184 million, down 1.81% year-on-year. The above information belongs to a periodic report, not a performance forecast.

4.12 No New Share Repurchase Announcement Found as of September 13

As of September 13, 2026, no new share repurchase plan, repurchase progress announcement, or repurchase purpose change announcement issued by the company in September 2026 had been retrieved. The company previously had share repurchase and treasury stock arrangements, and the September 11, 2026 extraordinary shareholders' meeting announcement still showed that the company's repurchase special account held shares; subsequent attention should be paid to treasury stock disposal, cancellation, or employee incentive arrangements.

4.13 No Major Regulatory Penalties Found as of September 13

As of September 13, 2026, no announcements had been retrieved showing that Ringpu Biology was subject to disciplinary action by the exchange, administrative regulatory measures, or major penalties in September 2026. The recent regulatory policy-related matter mainly concerns two avian influenza vaccines passing the Ministry of Agriculture and Rural Affairs' production strain change filing review, but the products still need to obtain veterinary drug product approval numbers before formal launch.

5. Stock Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

Ringpu Biology's stock price retreated after peaking in mid-August 2026, rebounded in early September, and then weakened again. On September 11, it closed at RMB 17.23, below MA5, MA10, and MA20, and closed near the day's low, with short-term selling pressure somewhat strengthened. Technically, RMB 17.0–17.3 is the first support reference zone; RMB 16.6–16.9 is close to the Bollinger lower band and the August 26 stage low, belonging to a stronger support area; RMB 18.0–18.3 is the short-term resistance zone, and RMB 18.8–19.0 corresponds to a higher resistance reference. RSI6 has not yet entered the extreme oversold zone, and the current specific MACD values cannot be confirmed due to the lack of verifiable complete recent data. Recent turnover was mainly between RMB 60 million and RMB 100 million; on September 7, volume once expanded to approximately RMB 153 million, but subsequently fell back. On September 11, turnover did not significantly expand in tandem with the decline, and no strong confirmation signal of volume-driven decline or volume-driven breakout has yet formed.

5.3 Short-Term Trend Outlook (Next Week, Scenario Deduction, for Reference Only)

⚠️ Risk Warning: The following content is only a subjective scenario deduction based on price, volume, moving averages, and fund flows. It does not constitute investment advice, nor does it constitute a guarantee of actual future trends.

① Key Technical Levels

② Next Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively high weight, approximately 60%; a subjective heuristic judgment based on current technical and capital structure, not a statistical probability): price range approximately RMB 17.0–18.3. Trigger conditions include the stock price finding support near RMB 17.0–17.3, turnover remaining at approximately RMB 60 million–100 million, no effective break below RMB 17 for two consecutive days, and no obvious collective weakness in the pharmaceutical, biological products, or animal health sectors. In this scenario, the stock price may fluctuate repeatedly around the MA10/MA20 area of RMB 17.7–17.9, showing weak repair after a decline or box-range consolidation.
• Weaker downside (medium weight; a subjective heuristic judgment based on current technical and capital structure, not a statistical probability): price range approximately RMB 16.6–17.0. Trigger conditions include the closing price effectively breaking below RMB 17.0, turnover significantly expanding versus recent normal levels, main force funds showing net outflows for multiple consecutive trading days, and the pharmaceutical manufacturing or animal health sectors weakening in tandem. If the above combination occurs, the price may move toward the Bollinger lower band at approximately RMB 16.6 and the August 26 stage low of RMB 16.85; if there is still no absorption near RMB 16.6, the short-term technicals will shift to a more obvious bearish alignment.
• Rebound strengthening (low to medium weight; a subjective heuristic judgment based on current technical and capital structure, not a statistical probability): price range approximately RMB 18.3–19.0. Trigger conditions include the stock price重新 breaking above RMB 18.3, turnover reaching approximately RMB 85 million or more for at least two consecutive days, main force funds showing relatively obvious net inflows again, and the sector or company seeing catalysts capable of improving market expectations. If it breaks above RMB 18.3 on expanded volume, the upper resistance can reference RMB 18.8–19.0, corresponding to the Bollinger upper band at approximately RMB 18.94 and the mid-August dense trading area; if volume confirmation is lacking and it only touches around RMB 18 on a low-level rebound, sustainability still needs to be observed.

③ Capital and Liquidity Background

As of September 11, 2026, single-day turnover was approximately RMB 68.11 million, with a turnover rate of 1.17%; recent trading-day turnover was mainly approximately RMB 60 million–100 million, with a turnover rate of approximately 1.03%–1.58%; on September 7, turnover was approximately RMB 153 million, with a turnover rate of 2.51%. As of August 31, 2026, the total number of shareholders was 21,756; as of June 30, 2026, the top ten shareholders collectively held approximately 249 million shares, accounting for approximately 53.59% of total share capital. Among the top ten shareholders are both the actual controller and natural person shareholders, as well as the Guotai CSI Livestock Breeding ETF, the National Social Security Fund Portfolio 604, and private equity funds, indicating that the company is not entirely dominated by natural person shareholders; however, the actual controller and core natural persons hold a relatively high proportion, chip concentration is relatively high, and the actual free float is smaller than total share capital. Top ten shareholder data is as of June 30, 2026 and has quarterly lag; the current holding structure may already have changed and cannot be regarded as the real-time structure as of September 11, 2026. As of September 11, 2026, the company had approximately 60.30 million pledged shares, with a pledge ratio of approximately 12.97%; this data cannot simply be equated with short-term reduction pressure. Combined with recent turnover and turnover rate, the stock is not a high-liquidity instrument, and in actual trading attention should be paid to absorption capacity and price volatility when volume is insufficient; however, based on existing data alone, it is impossible to further quantify order book depth or slippage.

The verifiable volume confirmation signal is: if in the coming week single-day turnover reaches approximately RMB 85 million or more for two consecutive days and the price simultaneously stands back above RMB 18.3, this can be regarded as a confirmation signal that short-term funds are strengthening again and the effectiveness of the rebound is improving; if turnover is below approximately RMB 60 million when the price breaks below RMB 17, it is closer to a low-volume weakening, and the absorption strength in the RMB 16.6–16.9 support zone still needs to be observed.

④ Points to Watch (Observation Ideas Only, Not Operational Instructions)

• Observation idea, not an operational instruction: watch whether the RMB 17.0–17.3 area can stabilize, and whether obvious absorption appears in the RMB 16.6–16.9 area
• Observation idea, not an operational instruction: watch whether the RMB 18.0–18.3 resistance zone can be effectively broken, and whether it is accompanied by turnover reaching approximately RMB 85 million or more for two consecutive days
• Observation idea, not an operational instruction: watch whether main force funds shift from the repeated state in early September 2026 to continuous net inflows; same-scope main force fund data from September 5 to September 11 is currently missing
• Observation idea, not an operational instruction: watch whether the closing price after September 11 continues to remain below MA5, MA10, and MA20

The above scenario deduction is based on the September 11, 2026 closing data and historical price and technical indicator calculations. Short-term stock prices will also be disturbed by multiple factors such as news, capital flows, and the broader market environment. Technical indicators themselves have lag and limitations, do not constitute a guarantee of actual future trends, and do not constitute buy or sell recommendations. Please make independent judgments in light of the latest market information and bear investment risks yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

China's veterinary drug industry has a large number of enterprises, with sales and profits concentrating toward large enterprises. According to the "2024 Veterinary Drug Industry Development Report" by the China Veterinary Drug Association, as of the end of 2024, China's veterinary drug industry sales were RMB 67.996 billion, with an average gross margin of 28.21%, and there were 1,681 veterinary drug enterprises nationwide. This industry data is the scope cited in Ringpu Biology's 2025 annual report, and this memo did not separately obtain the original report.

6.2 Competitive Landscape

• As of the end of 2024, there were 196 biological products enterprises, with sales of RMB 15.401 billion; 25 large enterprises accounted for 64.95% of biological products industry sales and 71.62% of gross profit.
• As of the end of 2024, there were 1,485 chemical drug enterprises, with sales of RMB 52.595 billion; 75 large enterprises accounted for 57.40% of chemical drug industry sales and 57.58% of gross profit.
• The concentration of the biological products industry is higher than that of the chemical drug industry, with technology, qualifications, quality systems, R&D capabilities, and biosafety requirements constituting relatively high entry barriers; there are more chemical drug enterprises, and homogenization and price competition are more obvious.
• Industry competition has shifted from single-product competition to multi-dimensional competition in technologies such as new vaccines and genetic engineering, product quality and biosafety, major customer channels, integrated disease prevention and control services, full-chain cost control, pet health, and overseas registration.
• Mandatory immunization vaccine procurement is gradually shifting toward "vaccinate first, subsidize later" and marketization, and enterprises need to respond to changes in the government procurement share through product quality, brand, services, and channels to large-scale breeding groups. Ringpu Biology's government tender revenue accounted for 4.96% in 2025, while direct sales and distribution combined accounted for more than 91%.

6.3 Main Competitors

Ringpu Biology's competitive positioning lies between specialized vaccine enterprises and comprehensive animal health enterprises: compared with Biotech, Pulike, and Keqian Biology, the company has a broader business matrix, covering chemical drugs, API, pet supply chain, and integrated disease services; compared with China Animal Husbandry, the company is more concentrated in veterinary biological products, veterinary preparations, and pet medical-related businesses; Jinhe Biology mainly overlaps with the company in veterinary chemical drugs and API. The above companies are business comparables, and simple horizontal comparison based solely on total revenue is not appropriate; the specific competitive tier will change with statistical scope, annual revenue, and product classification.

7. Risk Warnings

• In H1 2026, the company's revenue grew only 0.75% year-on-year, and net profit attributable to shareholders fell 20.43% year-on-year, while the institutional consensus forecast for full-year net profit attributable to shareholders is approximately RMB 445 million; if livestock and poultry animal health demand, product prices, or profitability do not improve in the second half, the full-year forecast may be difficult to realize.
• The pharmaceutical preparations and API business had 2025 revenue of RMB 1.050 billion and gross margin of 35.34%, with gross margin continuing to decline from 2024; raw materials account for 81.61% of the related operating cost in this business, and if prices of chemical intermediates, API synthesis materials, or packaging materials rise, profits may be further compressed.
• The company's top five suppliers accounted for 31.89% of total annual procurement, and the largest supplier accounted for 12.18%, with supplier concentration higher than customer concentration; at the same time, the annual report does not disclose all supplier names and specific procurement categories, and dependence on a single raw material or supplier still cannot be fully judged.
• The pet supply chain had 2025 revenue of RMB 782 million, accounting for 23.00%, but gross margin was only 14.91%; although this business and the pet business in H1 2026 maintained growth, if scale expansion does not bring simultaneous gross margin improvement, changes in business structure may drag down the company's overall profitability.
• Although the porcine epidemic diarrhea mRNA vaccine has completed clinical trials and is advancing registration application, the feline infectious peritonitis mRNA vaccine is still in the clinical stage; both products require approval from competent authorities before launch, and R&D investment, registration progress, and commercialization revenue are uncertain.
• The ten-thousand-ton microbial protein industrialization base is still under construction and is planned to be completed and enter trial production by the end of 2026. The related production lines have not yet been formally put into production and large-scale external sales have not yet been carried out; equipment commissioning, customer trials, product ramp-up, and profit contribution may all fall short of expectations.
• The company has reviewed and approved continuing to conduct asset pool business and provide guarantees, but current data does not disclose the asset pool scale, guarantee balance, or specific risk exposure; if the scale of related business expands, it may increase contingent liabilities and capital management risks.
• The company directly holds approximately 9.09% equity in Ruipai Pet Hospital, and its shareholding ratio in Tianjin Zhongrui Supply Chain has been increased to 86%; the related businesses have industrial synergy significance, but related-party transactions, tunneling, internal pricing, and M&A integration effects still need attention.
• The company's 2025 net cash flow from operating activities fell 59.55% year-on-year; although it rose 43.04% year-on-year in H1 2026, attention still needs to be paid to the impact of pet supply chain expansion, inventory, receivables, taxes, and other operating income and expenditure changes on capital occupation.
• As of September 11, 2026, the company's equity pledge ratio was approximately 12.97%, and the closing price was below MA5, MA10, and MA20; if the stock price effectively breaks below RMB 17.0 and further loses the RMB 16.6–16.9 support area, market attention to short-term trends and pledge-related risks may intensify.

8. Conclusion and Outlook

Ringpu Biology's medium- to long-term growth logic mainly comes from the coordinated development of high-gross-margin biological products, pet health business, translation of R&D achievements, and integrated animal disease prevention and control services. In 2025, biological products gross margin rebounded, the pet business maintained rapid growth in H1 2026, and projects such as mRNA vaccines, grapiprant, and microbial protein provide potential incremental growth. The company also enhances customer stickiness through services such as testing and diagnosis, epidemic monitoring, immunization program design, and breeding management, and its business model has extended from single veterinary drug sales to integrated animal health services.

Short-term performance is still in the verification stage. In H1 2026, revenue grew slowly and net profit attributable to shareholders declined; the livestock and poultry animal health business was affected by factors such as breeding demand adjustments and VAT policy changes; if demand, product prices, or profit margins do not improve significantly in the second half, achieving the institutional forecast of approximately RMB 445 million in full-year net profit attributable to shareholders will face pressure. In the future, key observations include the share of high-gross-margin biological products, the gross margin of pharmaceutical preparations and API, the profit quality of the pet business, and the commercialization progress after new product registration and microbial protein capacity deployment.

The company's valuation and stock price performance are highly sensitive to performance realization. The current stock price is between the 52-week high and low, technically below multiple short-term moving averages, and institutional forecasts are not company performance commitments. The company's operating cash flow fell 59.55% year-on-year in 2025; although operating cash flow improved 43.04% year-on-year in H1 2026, supplier concentration is higher than customer concentration, and capital occupation and contingent liabilities brought by asset pool business and guarantees, related-party transactions, and business expansion still need continuous tracking.

Data Sources

• https://static.cninfo.com.cn/finalpage/2026-03-31/1225054294.PDF
• Tianjin Ringpu Biology Technology Co., Ltd. 2023 Annual Report Full Text
• https://static.cninfo.com.cn/finalpage/2025-04-03/1222991837.PDF
• Biotech (600201)_Company Announcement_Biotech: 2024 Annual Report Sina Finance_Sina
• China Animal Husbandry (600195)_Company Announcement_China Animal Husbandry: 2024 Annual Report Sina Finance_Sina
• Pulike (603566)_Company Announcement_Pulike: 2024 Annual Report Sina Finance_Sina
• Keqian Biology (688526)_Company Announcement_Keqian Biology: 2024 Annual Report Sina Finance_Sina
• Ringpu Biology: 2026 Semi-Annual Report Summary
• Ringpu Biology (300119) Annual Report Review: Livestock and Poultry Segment Grows Steadily, Microbial Protein Contributes New Growth Point__Sina Finance_Sina
• Ringpu Biology (300119) Earnings Forecast_F10_Tonghuashun Financial Services Network
• Institutional Rating | Huatai Securities Gives Ringpu Biology a "Buy" Rating
• Ringpu Biology (300119) Latest Stock Price Quotes, Real-Time Trend Chart, Stock Price Analysis Forecast_Investing.com
• Ringpu Biology (300119) Historical Stock Data: Historical Quotes, Prices, Trend Charts_Investing.com
• Ringpu Biology (300119) P/E Ratio | Valuation | Fundamentals - Lixinger
• Ringpu Biology (300119)_Company Announcement_Ringpu Biology: 2026 Semi-Annual Report Sina Finance_Sina
• Ringpu Biology (300119)_Company Announcement_Ringpu Biology: Announcement on Resolutions of the Second Extraordinary Shareholders' Meeting of 2026 Sina Finance_Sina
• Ringpu Biology (300119)_Company Announcement_Ringpu Biology: Investor Relations Management Information 20260903 Sina Finance_Sina
• Ringpu Biology_ Individual Stock Calendar _ East Money_ Data Channel
• Ringpu Biology (300119)_Company Announcement_Ringpu Biology: Announcement on Products Passing the Ministry of Agriculture and Rural Affairs' Production Strain Change Filing Review Sina Finance_Sina
• Ringpu Biology (300119) Company Events_F10_Tonghuashun Financial Services Network
• Ringpu Biology (300119)_Company Announcement_Ringpu Biology: Progress Announcement on Acquisition of Partial Equity in Controlled Subsidiary Tianjin Zhongrui Supply Chain Management Co., Ltd. and Related-Party Transaction Sina Finance_Sina
• Ringpu Biology (300119)_Company Announcement_Ringpu Biology: 2026 Semi-Annual Report Sina Finance_Sina
• Ringpu Biology (300119) Company Announcements_Sina Finance_Sina
• Ringpu Biology (sz300119) Quotes and Trends
• Ringpu Biology (300119) Stock Information - Data Platform
• SZ.300119 Ringpu Biology RINGPU BIO-TECH - A-share Real-Time Quote RT Quote - Detailed Quote - etnet | Hong Kong News Financial Information and Lifestyle Platform
• Ringpu Biology Closing Price RMB 17.3, RSI6 at 38.7
• Ringpu Biology (300119) Stock Quotes and Trends Technical Analysis_Future Forecast_Buy and Sell Operation Suggestions_Investing.com
• Ringpu Biology (300119) Individual Stock Analysis_Niucha Zhengu_Tonghuashun Finance
• Stock Market Quick Report: Ringpu Biology (300119) Main Force Funds Net Buy of RMB 400,400 on August 28_Stock Channel_Stockstar
• Ringpu Biology (300119) Shareholder Research_F10_Tonghuashun Financial Services Network

This report was automatically retrieved, compiled, and generated by AI based on public channel information. Information is as of the close on September 11, 2026; certain technical indicators are approximate calculations based on publicly available historical closing prices and may have timeliness differences. For specific data, please refer to the company's formal announcements and authoritative data terminals. This report is only for information compilation and research reference, does not constitute any investment advice, and investors should make independent judgments and bear investment risks themselves.