Jinyu Bio-Technology Co., Ltd. (Bio-Technology) (600201)

Equity Research Report　|　Industry: Veterinary Biological Products　|　Report Date: September 13, 2026　|　Data as of the September 11, 2026 close; 52-week high/low data can be cross-checked as of September 10–11, 2026, but the corresponding exact trading dates have not been reliably confirmed.

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

1. Executive Summary

Bio-Technology generated revenue of RMB 756 million in the first half of 2026, up 22.09% year on year; net profit attributable to the parent was RMB 104 million, up 72.28%; and non-GAAP net profit attributable to the parent was approximately RMB 89.69 million, up 178.61%. Growth was mainly driven by the ruminant and companion-animal healthcare businesses, the launch of new products, synergies from industry acquisitions, and optimization of expenses and manufacturing costs. By comparison, the company’s full-year 2025 revenue increased 11.23%, while net profit attributable to the parent declined 8.14%, indicating that the profit recovery in the first half of 2026 had a relatively clear phase-specific improvement profile.

The company remains highly concentrated in veterinary biological products. In 2025, biopharmaceutical revenue accounted for approximately 92.67% of total revenue, with a gross margin of 54.78%. R&D expenditure was RMB 174 million, representing 12.49% of revenue. The company holds qualifications for compulsory-immunization vaccines such as foot-and-mouth disease vaccines, operates three intelligent manufacturing entities, and has an ABSL-3 laboratory and a relatively complete animal-vaccine R&D platform. Its products cover pigs, poultry, ruminants and companion animals. However, government-procurement price competition, homogenization among non-compulsory-immunization products and the bargaining pressure exerted by large farming customers remain concerns.

The sustainability of the improvement requires further observation. Net cash generated from operating activities was approximately RMB 51.02 million in the first half of 2026, down 42.63% year on year, while accounts receivable stood at RMB 591 million at the end of 2025, equivalent to approximately 42.3% of revenue, indicating that sales-side capital occupation remains significant. The company completed a share repurchase of approximately RMB 300 million, representing approximately 2.17% of total share capital before the repurchase. However, as of September 11, 2026, the share price was RMB 11.69, below the MA5, MA10 and MA20, indicating weak short- to medium-term technical momentum. Depending on the data source, the P/E ratio was approximately 61.76x–95x, making the valuation sensitive to the subsequent delivery of earnings.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Pig vaccines, including foot-and-mouth disease vaccines, live vaccines for pseudorabies, live vaccines for classical swine fever and porcine circovirus vaccines
• Poultry vaccines, including highly pathogenic avian influenza vaccines
• Ruminant vaccines, including bivalent inactivated cattle vaccines
• Companion-animal vaccines, including rabies vaccines and feline triple vaccines
• Disease testing, immunization planning, technical services and integrated animal-disease prevention and control solutions
• Other businesses, with 2025 revenue of RMB 48.6048 million and a gross margin of 7.50%

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

Bio-Technology is positioned in the upper-middle portion of the animal-healthcare value chain. It is not merely a low-value-added vaccine contract manufacturer, but a technology-oriented midstream enterprise with R&D platforms, compulsory-immunization vaccine qualifications, intelligent manufacturing bases, product-registration capabilities and animal-disease prevention and control services.

• The company’s upstream procurement primarily supports animal-vaccine R&D and production. In 2025, raw-material costs in the biopharmaceutical business were RMB 196.60 million, accounting for 33.60% of biopharmaceutical costs; manufacturing expenses were RMB 298.67 million, accounting for 51.04%; labor costs were RMB 50.3838 million, accounting for 8.61%; and packaging costs were RMB 21.3074 million, accounting for 3.64%.
• The annual report does not provide further details of raw-material purchases. Accordingly, the specific proportions of media, cell lines, virus seed stocks, adjuvants, stabilizers, reagents and consumables cannot be confirmed. Based on production processes, upstream inputs generally include raw and auxiliary materials for biological cultivation and testing, adjuvants and stabilizers, packaging materials, laboratory consumables, cleanrooms and specialized production equipment. However, this is an industry judgment rather than a precise cost structure disclosed by the company.
• Raw-material costs increased 21.86% year on year in 2025, exceeding the 9.16% growth in biopharmaceutical revenue, indicating some pressure from costs on margins.
• Purchases from the top five suppliers amounted to RMB 99.9124 million in 2025, representing 33.84% of total annual purchases, with no related-party purchases. The company disclosed that no single supplier accounted for more than 50% of purchases. Overall, the company does not appear materially dependent on a single supplier, although publicly available information cannot fully verify whether there are implicit supply barriers for key biological raw materials, specialized equipment or high-grade consumables.
• The company is a large-scale purchaser, but does not necessarily possess strong pricing power for all key biological raw materials. The specific supplier landscape and price-transmission capacity for raw materials, manufacturing equipment and biological production consumables have not been fully disclosed.
• Downstream customers mainly include large-scale farming groups and farms, small and medium-sized farms, and government entities responsible for compulsory animal-disease immunization procurement.
• In 2025, government-procurement revenue was RMB 398.8619 million, with a gross margin of 56.67%; direct-sales revenue was RMB 496.4709 million, with a gross margin of 55.34%; distributor revenue was RMB 389.7695 million, with a gross margin of 52.73%; and other-business revenue was RMB 57.5494 million, with a gross margin of 10.78%.
• Prices of vaccines purchased by the government are affected by bidding and fiscal procurement mechanisms, resulting in visible price competition. Large-scale farming groups purchase in large volumes and at high concentration, and impose greater requirements on price, supply stability and technical services, giving them relatively strong bargaining power.
• Distributor channels help cover dispersed farming customers, but distributor-model gross margins are generally lower than those of certain direct-sales or government-procurement products. As farming becomes more concentrated, competition is shifting from simple product sales toward product quality, immunization efficacy, disease testing, on-site services and integrated prevention and control solutions.
• Sales to the top five customers amounted to RMB 139.9378 million in 2025, representing 10.43% of total annual sales, with no related-party sales. The company disclosed that no single customer accounted for more than 50% of total sales and that it was not materially dependent on its top five customers. The corresponding percentages were 25.19% in 2023 and 27.82% in 2022. These concentration figures come from different reporting years, and revenue scale and customer-statistics methodologies may have changed. They therefore cannot alone establish that customer bargaining power has materially improved.
• Narrowing profitability among downstream farming businesses is prompting greater control over animal-healthcare procurement costs. Conventional chemical products and homogenized vaccines face price competition. The company’s bargaining power derives primarily from vaccine qualifications, product quality, brand, R&D platforms and integrated disease-prevention services rather than an absolute monopoly over customers.
• As of December 31, 2025, consolidated accounts receivable were RMB 591 million, down from RMB 633 million at the end of 2024. Based on 2025 revenue of approximately RMB 1.396 billion, accounts receivable represented approximately 42.3% of revenue and, on a rough comparison with net profit attributable to the parent of approximately RMB 100 million, approximately 5.9x net profit, indicating significant capital occupation on the sales side. Prepayments were RMB 19.3981 million, up from RMB 7.3352 million at the end of 2024; inventories were RMB 269 million, down from RMB 295 million; accounts payable were RMB 235 million, down from RMB 262 million, equivalent to approximately 40.1% of biopharmaceutical principal-business costs of RMB 585 million; and contract liabilities were RMB 101 million, slightly down from RMB 105 million. The company receives some payment-term support from upstream suppliers, but the annual report does not disclose the specific average payment period, making it impossible to accurately assess its actual bargaining power over suppliers.
• Supplier side: purchases from the top five suppliers represented 33.84% of total annual purchases in 2025, and no single supplier accounted for more than 50%. Customer side: sales to the top five customers represented 10.43% of total annual sales in 2025, compared with 25.19% and 27.82% in 2023 and 2022, respectively. Customer-concentration data differ by year and statistical methodology, and the available materials do not provide more complete continuous-year cross-checking information. The latest annual report should therefore be used as the authoritative basis.

The company is positioned in the upper-middle portion of the veterinary biological-products value chain. Its relatively high margins derive mainly from product qualifications, R&D platforms, quality control, brand and integrated services, rather than absolute pricing power over upstream raw materials or downstream farming customers. Future profit improvement will depend primarily on product-mix upgrades in non-foot-and-mouth disease, ruminant, companion-animal and overseas businesses, volume growth of new products, manufacturing-process cost reductions and scale efficiencies, rather than simply expanding capacity for traditional compulsory-immunization vaccines or broadly raising prices.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest formal financial report is the 2026 Interim Report, disclosed on August 4, 2026. Non-GAAP net profit attributable to the parent in the first half of 2026 was approximately RMB 90 million, up 178.61% year on year. This figure mainly comes from the interim report and excerpts from relevant institutional research reports; the final basis should be the company’s disclosures in the notes to the interim report. Full-year 2025 non-GAAP net profit attributable to the parent was RMB 49.7443 million, up 0.52% year on year. Basic EPS was RMB 0.10 in the first half of 2026, compared with RMB 0.06 in the first half of 2025; full-year 2025 basic EPS was RMB 0.09, compared with RMB 0.10 in 2024.

Growth in the first half of 2026 was mainly driven by the ruminant-vaccine and companion-animal healthcare businesses, synergies from industry acquisitions, and optimization of selling and administrative expenses. Investment income and fair-value changes had some impact on current-period profit, causing the growth rate of non-GAAP net profit attributable to the parent to exceed that of reported net profit attributable to the parent. Revenue recovered in 2025, but net profit attributable to the parent still declined year on year, reflecting industry competition, product-price pressure and the impact of R&D and expense investment on margins. The first-half 2026 earnings preview projected net profit attributable to the parent at RMB 91 million–109 million, up 50.60%–80.39%; the formally disclosed figure of RMB 104.10 million was within the preview range.

3.2 Earnings Forecasts

According to THS F10 as of September 11, 2026, six institutions issued earnings forecasts during the preceding six months. Their 2026 forecasts for net profit attributable to the parent range from RMB 132 million to RMB 341 million, with EPS of RMB 0.12–0.32; 2027 forecasts range from RMB 205 million to RMB 440 million, with EPS of RMB 0.18–0.41; and 2028 forecasts range from RMB 287 million to RMB 649 million, with EPS of RMB 0.26–0.60. Institutional forecasts are excerpts from research reports and third-party aggregations rather than official company guidance. Assumptions differ significantly across institutions regarding the commercialization pace of African swine fever vaccines and the volume ramp-up of companion-animal and ruminant healthcare businesses. The Pacific Securities forecast was issued in November 2025, before the 2026 interim report, and its 2025 earnings forecast was materially higher than the company’s final reported figure; its reference value is therefore lower than that of more recent forecasts.

3.3 Valuation and Institutional Ratings

As of the September 11, 2026 close, the share price was RMB 11.69, total market capitalization was approximately RMB 12.87 billion–RMB 12.90 billion, total shares outstanding were approximately 1.10 billion, trailing P/E was approximately 89.4x–92.1x, non-GAAP P/E was approximately 119.9x, P/B was approximately 2.33x–2.45x, net assets per share were approximately RMB 4.87, and the dividend yield was approximately 0.3%. In summary, the stock traded at approximately 90x trailing P/E and 2.4x P/B. Lixinger reported a company P/E of approximately 92.10x versus an industry P/E of approximately 43.47x; company P/B was approximately 2.45x versus industry P/B of approximately 1.95x. The company’s static P/E was materially higher than that of the Shenwan Animal Healthcare industry. Based on the RMB 11.69 closing price, forward P/E for 2026–2028 was approximately 53x, 39x and 28x using the THS institutional consensus average; approximately 62x, 39x and 23x using Northeast Securities’ forecasts; and approximately 38x, 29x and 20x using SDIC Securities’ forecasts. Public institutional target prices ranged from approximately RMB 14.00 to RMB 20.70. The more recent views with explicit target prices were mainly SDIC Securities at RMB 14.70 and China Renaissance Securities at RMB 18.10. The current valuation is not inexpensive based on 2026 earnings forecasts, but if the company delivers the expected 2027–2028 volume ramp-up of new products and margin recovery, forward P/E could decline materially. If commercialization of African swine fever vaccines, growth in the companion-animal business or product-price recovery falls short of expectations, a trailing P/E of approximately 90x would remain high. Small differences in P/E and P/B across platforms may result from differences in total shares, repurchase cancellations, financial-report update timing and calculation methodologies.

4. Recent News and Announcements

4.1 First-Half 2026 Earnings Preannouncement Broadly Delivered

On July 6, 2026, the company disclosed a positive earnings preannouncement, expecting first-half 2026 net profit attributable to shareholders of the listed company of RMB 91 million–109 million, up 50.60%–80.39% year on year; non-GAAP net profit of RMB 70 million–91 million, up 117.45%–182.69%. On August 4, 2026, it disclosed its interim report, reporting revenue of approximately RMB 756 million, up 22.09%; net profit attributable to the parent of approximately RMB 104 million, up 72.28%; and non-GAAP net profit attributable to the parent of approximately RMB 89.6856 million, up 178.61%. These results were broadly in the upper-middle portion of the earlier preview range. Growth was mainly attributable to the ruminant and companion-animal healthcare businesses, synergies from industry acquisitions, digital and lean management, expense and manufacturing-cost optimization, and new-product launches. Net cash generated from operating activities was approximately RMB 51.02 million, down 42.63% year on year. The conversion of profit growth into operating cash flow requires continued monitoring.

4.2 Share Repurchase Completed on September 5, 2026, with Actual Payment of Approximately RMB 300 Million

On June 5, 2026, the company’s board approved a share-repurchase plan using its own funds or self-raised funds through centralized bidding. The plan covered an amount of no less than RMB 200 million and no more than RMB 400 million, with a maximum repurchase price of RMB 20.70 per share and a term of no more than three months. The repurchased shares were intended to maintain company value and protect shareholder interests. On September 8, 2026, the company disclosed the results: as of the expiry of the repurchase period on September 5, it had repurchased 23.9225 million shares, representing approximately 2.17% of total share capital before the repurchase, for an actual payment of approximately RMB 299.9662 million excluding transaction costs. The repurchase price ranged from RMB 11.12 to RMB 14.04 per share, with an average price of RMB 12.54 per share. After completion, total share capital decreased from 1,111.747826 billion shares to 1,099.927826 billion shares, and all repurchased shares were held in a dedicated repurchase securities account for subsequent disposal under the established plan. During the repurchase period, the directors, senior executives, repurchase proposer and acting-in-concert party Inner Mongolia Jinyu Bio-Tech Holding Co., Ltd. did not trade the company’s shares.

4.3 Partial Cancellation of 2023 Employee Stock Ownership Plan Shares; Major Shareholder’s Holding Ratio Increased Passively

On August 4, 2026, the company disclosed the implementation of the repurchase and cancellation of certain shares under its 2023 employee stock ownership plan. On August 6, it cancelled 8.5184 million shares corresponding to granted but unlocked interests. On August 11, the company disclosed that, due to the reduction in total share capital, the aggregate shareholding ratio of Inner Mongolia Jinyu Bio-Tech Holding Co., Ltd. and its acting-in-concert parties Zhang Chongyu and Zhang Jing increased passively from 13.95% to 14.06%, an increase of 0.11 percentage points. Inner Mongolia Jinyu Bio-Tech Holding Co., Ltd. held 125,510,800 shares, with its ratio rising from 11.32% to 11.41%; Zhang Chongyu held 23,003,826 shares, with his ratio rising from 2.08% to 2.09%; and Zhang Jing held 6,132,742 shares, with his ratio rising from 0.55% to 0.56%. Their combined number of shares remained 154,647,368. The change did not involve an actual increase in holdings, did not trigger a mandatory tender-offer obligation and did not violate existing commitments.

4.4 Early Dissolution, Liquidation and Deregistration of Inner Mongolia Jinxin No. 1 Equity Investment Fund

On August 13, 2026, the company disclosed that Inner Mongolia Jinxin No. 1 Equity Investment Fund, which it helped establish, would be dissolved early and liquidated due to changes in relevant regulatory policies. Bio-Technology subscribed approximately RMB 200 million, representing approximately 40% of the subscribed interests. Inner Mongolia Financial Asset Management Co., Ltd. was required to withdraw from the fund because it could no longer engage in equity investment of a financial-investment nature, while the fund manager, New Energy Fund, was no longer suitable to continue serving as fund manager. On August 11, 2026, the partners unanimously agreed to dissolve and deregister the partnership early, with the fund manager responsible for subsequent liquidation and dissolution. The matter does not constitute a related-party transaction or material asset restructuring, and the company stated that it would not have a material adverse impact on daily operations or financial condition. The actual paid-in capital, underlying-asset value, liquidation progress, final recoverable amount and investment gains or losses have not been disclosed, leaving the ultimate impact uncertain.

4.5 Subscription of an Equity Private Securities Investment Fund for RMB 50 Million

On July 2, 2026, the company disclosed its intention to use RMB 50 million of idle internal funds to subscribe to units of the Chenxi Haoran Core No. 2 Private Securities Investment Fund. The fund is an equity private securities investment fund with a 20-year term. Its manager is Chenxi (Shenzhen) Private Securities Investment Fund Management Co., Ltd., and its custodian is Guotai Haitong Securities Co., Ltd. The company has no related-party relationship with the manager, and the investment does not constitute a material asset restructuring or related-party transaction. The fund provides no principal protection or minimum-return commitment; the proportion invested in equity assets is no less than 80%, and the expected risk rating is R5. No warning line or stop-loss line has been established. The company stated that the purpose was to improve the efficiency of using idle internal funds without affecting normal operations. The announcement did not disclose specific investment strategies or expected returns.

4.6 Subsidiary Authorized to Produce Vaccine Products Related to South African Type 1 Foot-and-Mouth Disease

On July 22, 2026, the company disclosed that a subsidiary had obtained relevant veterinary-drug product approval numbers from the Ministry of Agriculture and Rural Affairs for foot-and-mouth disease vaccine products containing South African Type 1. The approval helps expand the animal-vaccine portfolio and covers disease-prevention applications for major economic animals including pigs, cattle and sheep. It represents product approval and business expansion rather than an acquisition or material asset restructuring. The announcement did not disclose incremental sales revenue, capacity or profit contribution, and the short-term impact on results cannot yet be quantified.

4.7 No New Material Acquisition or Material Asset Restructuring Announcement Recently Identified

As of September 13, 2026, the available materials indicated that no new material equity acquisition or material asset restructuring announcement had recently been identified. The industry-acquisition synergies reflected in first-half 2026 results mainly represent integration of existing businesses and product expansion rather than a newly announced material acquisition. The materials also indicated that the latest important company announcement was the September 8 announcement on the implementation results of the share repurchase. No new material repurchase, disposal, acquisition or regulatory inquiry announcement was identified from September 9 to September 13, 2026.

4.8 Overall Impact of Recent Matters and Items to Monitor

The first-half 2026 earnings improvement has been broadly validated by the formal interim report. The share repurchase of approximately RMB 300 million has been completed, representing approximately 2.17% of total share capital before the repurchase. Cancellation of employee stock ownership plan shares caused the major shareholder and acting-in-concert parties’ holding ratio to rise passively, which does not represent an active increase in holdings. Continued attention should be paid to the liquidation recovery amount and final gains or losses of the Jinxin No. 1 Equity Investment Fund, as well as the principal and return volatility of the RMB 50 million equity private securities investment fund. The repurchased shares are currently held in a dedicated repurchase securities account. If they are not sold within three years after disclosure of the announcement, the unsold portion may be cancelled after completing the required procedures. If sold in the future, the shares could increase market supply pressure.

5. Share-Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Bio-Technology closed at RMB 11.69, down approximately 7.6% from August 21 and below the RMB 12.00 round-number level. The current price is below the MA5, MA10 and MA20 calculated from recent closing prices, and the short- to medium-term moving-average structure is weak. The closing price was also slightly below the estimated lower Bollinger Band, suggesting the possibility of a technical rebound but also the risk of further weakness. RSI was broadly neutral and did not indicate traditional oversold conditions. The latest verifiable MACD data are as of September 8 and cannot be treated as the final value for September 11. In terms of capital flows, the disclosed net outflow over the five trading days through September 4 was approximately RMB 14.6796 million. The 2.91% decline on September 11 occurred on trading value of approximately RMB 124 million, without a clear surge to an abnormal recent level, and therefore did not yet exhibit panic selling on heavy volume. In valuation terms, P/E varied from approximately 61.76x to 95x across platforms. Using CFi.cn’s approximately 89.42x reference, the stock was materially above the median P/E of approximately 34x for the pharmaceutical-manufacturing industry shown on that page.

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

⚠️ Risk warning: The following content is a subjective scenario analysis based on the September 11, 2026 closing data, historical prices and technical indicators. It does not constitute investment advice or a definitive price forecast.

① Key Technical Levels

② Scenarios for the Coming Week (Subjective Weights, Not Statistical Probabilities)

• Weak range-bound consolidation (relatively higher weight, approximately six-tenths; a subjective heuristic weight based on current technicals and fund flows, not a statistical probability): the observation range is RMB 11.60–12.10. Conditions include support emerging around RMB 11.60–11.75, trading value remaining approximately RMB 80 million–150 million, no decisive break below RMB 11.60 and no high-volume recovery above RMB 12.20. Under this scenario, the stock may fluctuate repeatedly around RMB 12.00.
• Further downside (medium weight; a subjective judgment based on current technicals and fund flows, not a statistical probability): the observation range is RMB 11.20–11.60. Conditions include a decisive break below RMB 11.60, daily trading value materially exceeding recent norms, continued weakness in pharmaceutical manufacturing or livestock-related sectors, and continued large net outflows from main funds. If RMB 11.60 is lost and not quickly recovered, the market may further test the RMB 11.20–11.50 area.
• Rebound and recovery (lower weight but not impossible; a subjective judgment based on current technicals and fund flows, not a statistical probability): the observation range is RMB 12.10–12.50. Conditions include first stabilizing around RMB 11.60–11.75, then recovering RMB 12.00 and RMB 12.20 on higher volume, with daily trading value materially above recent normal levels and simultaneous recovery in pharmaceutical or livestock-related sectors or a positive company-specific catalyst. If RMB 12.20 holds, monitor RMB 12.30–12.50; if volume is insufficient, the probability of retreat after a rebound toward RMB 12.00–12.20 is relatively high.

③ Capital and Liquidity Background

As of September 11, 2026, the daily turnover rate was 0.96% and trading value was approximately RMB 124 million. From September 8 to September 11, trading value was approximately RMB 128 million, RMB 85 million, RMB 135 million and RMB 124 million, respectively, with corresponding turnover rates of 0.94%, 0.63%, 1.02% and 0.96%. Recent turnover was generally approximately 0.6%–1.1%, and trading value was mainly RMB 85 million–146 million. Overall, short-term trading activity was ordinary. The stock is not an extremely illiquid small-cap stock, but without support from trading value, a sustained breakout above RMB 12.20 may be limited. For main-fund flows, the disclosed net outflow over the five trading days through September 4 was approximately RMB 14.6796 million; complete data for September 5–11 could not be reliably obtained. Shareholder-structure data are as of June 30, 2026 and lag by a quarter: there were 41,853 shareholders, while the top ten tradable shareholders held approximately 317 million shares in aggregate, representing approximately 28.55% of tradable shares. THS rated the degree of main-fund control as “low” and chip concentration as “relatively dispersed.” The top ten tradable shareholders disclosed on June 5, 2026 included the controlling shareholder and industrial capital, private funds, the Guotai CSI Livestock and Farming ETF and Hong Kong Securities Clearing Company Limited, but did not indicate a highly concentrated single-institution control structure. This shareholder structure may have changed with the September 2026 market movements and does not represent real-time ownership. In practice, current trading activity is ordinary, and a price rebound or breakout still requires trading-value support.

Observable volume-confirmation signal: if daily trading value subsequently expands to approximately RMB 180 million–200 million or more for consecutive sessions while the closing price remains above RMB 12.20, this could indicate improved short-term capital participation. If trading volume expands while the stock still closes below RMB 11.60, the signal would be more consistent with selling pressure or a trend breakdown.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Monitor whether the RMB 11.60–11.75 support zone produces a bottoming signal;
• Monitor whether the RMB 12.00–12.20 area can turn from resistance into support;
• Monitor whether trading value remains above approximately RMB 180 million–200 million on a sustained basis;
• Monitor whether updated main-fund data turn from consecutive net outflows to sustained net inflows, and whether the pharmaceutical-manufacturing and livestock-related sectors recover in tandem; all of the above are observation frameworks, not trading instructions.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices will also be affected by news, fund flows, the broader market environment and other factors. Technical indicators have inherent lags and limitations. This analysis does not guarantee future price movements and does not constitute a buy or sell recommendation. Investors should independently assess the latest market information and bear their own investment risks.

6. Industry Landscape and Competitor Analysis

6.1 Industry Overview

The veterinary biological-products industry has many companies, but revenue and resources are concentrated among leading enterprises. In 2024, China had approximately 1,681 veterinary-drug manufacturers, including approximately 196 veterinary biological-products companies. The output value of veterinary biological products was RMB 17.206 billion and sales were RMB 15.401 billion, down 5.38% year on year. The ten largest companies by sales accounted for 45.46% of industry sales.

6.2 Competitive Landscape

• Compulsory-immunization products continue to have policy and qualification barriers, but government-procurement price competition is strong.
• The non-compulsory-immunization pig-vaccine market is affected by procurement from large farming groups and industry homogenization, resulting in considerable price pressure.
• As farming becomes more concentrated, large customers are paying greater attention to immunization efficacy, disease eradication, testing services and customized solutions.
• Companion-animal vaccines, ruminant vaccines, multivalent vaccines, genetically engineered vaccines, mRNA vaccines and intelligent testing are key R&D and commercialization directions.
• The new veterinary-drug GMP standards and biosafety regulation have raised industry entry barriers, while inefficient and non-compliant capacity faces elimination.
• Data disclosed in Plasson’s annual report for 2024 show that only 25 large companies existed among veterinary biological-products enterprises, representing 12.80% of the total number of companies but 64.95% of sales, further demonstrating that industry revenue concentration is higher than the apparent dispersion suggested by company count.
• Industry competition is shifting from capacity scale toward technology, product quality, R&D capability, integrated services and biosafety qualifications, although price competition in government procurement and homogenized products remains.

6.3 Major Competitors

Bio-Technology’s relative strengths lie in its scale in foot-and-mouth disease vaccines, compulsory-immunization vaccine qualifications, three production bases, ABSL-3 laboratory and relatively complete animal-vaccine R&D platform. Compared with the more diversified China Animal Husbandry Industry, the broader product portfolios of Plasson and Ringpu Biology, and Kexin Biology’s higher gross margin in non-compulsory-immunization pig vaccines, the company still faces government-procurement price competition, homogenization of non-compulsory-immunization products and bargaining pressure from large farming customers. Its differentiated competitive strengths mainly derive from compulsory-immunization qualifications, R&D and biosafety capabilities, product-registration capabilities, brand and integrated disease-prevention services.

7. Risk Factors

• High concentration in veterinary biological products: Biopharmaceutical revenue accounted for approximately 92.67% of total revenue in 2025. If sales volume, prices or government-procurement scale for core vaccine products come under pressure, the company’s overall revenue and profit could be materially affected.
• Product-price and competitive risks remain significant: Government-procurement vaccine prices are affected by bidding and fiscal procurement mechanisms; non-compulsory-immunization pig vaccines face homogenized competition; and large farming groups have strong bargaining power. Biopharmaceutical gross margin was only 54.78% in 2025, still approximately 4.68 percentage points below 2023.
• Rising raw-material costs may compress margins: Biopharmaceutical raw-material costs increased 21.86% year on year in 2025, exceeding the approximately 9.16% growth in biopharmaceutical revenue. The company has not fully disclosed the specific supply barriers or price-transmission capacity relating to key biological raw materials, specialized equipment and high-grade consumables.
• Accounts-receivable and cash-flow risks: Accounts receivable stood at RMB 591 million at the end of 2025, equivalent to approximately 42.3% of 2025 revenue. Net cash generated from operating activities was approximately RMB 51.02 million in the first half of 2026, down 42.63% year on year. The conversion of profit growth into cash flow still requires verification.
• Risk that new businesses ramp up below expectations: First-half 2026 growth relied substantially on ruminant and companion-animal healthcare businesses, new products and synergies from industry acquisitions. The company has not disclosed a detailed breakdown of incremental revenue and profit attributable to these businesses. If the volume ramp-up is slower than expected, institutional earnings forecasts may be revised downward.
• R&D and product-registration conversion risks: The company invested RMB 174 million in R&D in 2025, representing 12.49% of revenue, but whether R&D investment can continue to translate into commercial products and profits remains uncertain. Although the vaccine related to South African Type 1 foot-and-mouth disease has obtained a product approval number, incremental sales, capacity and profit contribution have not been disclosed.
• Volatility in investments and non-core businesses: The company subscribed RMB 50 million to an equity private securities investment fund rated R5, without principal protection or a minimum-return commitment and without a warning or stop-loss line. This may cause volatility in principal and investment returns. The Jinxin No. 1 Equity Investment Fund has been dissolved and liquidated early, but the final recoverable amount and investment gains or losses have not been disclosed.
• Valuation and share-price volatility risks: As of September 11, 2026, the share price was RMB 11.69, while P/E ranged from approximately 61.76x to 95x depending on the platform, materially above the stated industry level. If 2026–2028 earnings forecasts are not achieved, valuation digestion could intensify share-price pressure. Technically, the share price is below the MA5, MA10 and MA20, while main funds recorded a net outflow of approximately RMB 14.68 million over the five trading days through September 4, leaving the share price vulnerable to significant short-term volatility.

8. Conclusion and Outlook

The company’s current growth drivers mainly comprise ruminant vaccines, the companion-animal healthcare business, new-product volume growth, product-mix optimization and synergies from existing industry acquisitions. In the first half of 2026, non-GAAP profit growth was materially higher than revenue growth, indicating that expense control, manufacturing-cost optimization and business-mix improvement had begun to take effect. If non-foot-and-mouth disease products, the companion-animal business and related new products continue to ramp up, there is room for further margin recovery. The company’s R&D, qualifications, biosafety and production platforms form the basis of its medium- to long-term competitiveness, but the scope for profit growth driven solely by capacity expansion or price increases in traditional compulsory-immunization products is limited.

The market already has relatively high expectations for subsequent earnings improvement. Institutional forecasts for 2026–2028 net profit attributable to the parent differ substantially, with the 2026 range spanning RMB 132 million–341 million, reflecting significant disagreement over the ramp-up pace of African swine fever vaccines, companion-animal vaccines and ruminant healthcare products. Based on the September 11, 2026 closing price, the company’s static valuation remained materially above the stated industry level. Future performance will therefore depend more on sustained delivery of earnings than on a single-quarter profit rebound.

Key items to monitor include growth in the ruminant and companion-animal businesses, actual sales contributions from new products and vaccines related to South African Type 1 foot-and-mouth disease, whether gross margin can continue improving despite raw-material cost pressure, and changes in operating cash flow and accounts receivable. In addition, the final recovery amount and gains or losses from the liquidation of the Jinxin No. 1 Fund, investment volatility in the RMB 50 million equity private fund, and the subsequent disposal method for repurchased shares may affect non-operating gains and losses, the capital structure and market expectations.

Data Sources

• Bio-Technology (600201)_Company Announcements_Bio-Technology: 2025 Annual Report_Sina Finance_Sina.com
• Limited Company 2024 Annual Report
• Bio-Technology (600201)_Company Announcements_Bio-Technology: 2025 Annual Report_Sina Finance_Sina.com
• Bio-Technology (600201) Principal-Business Revenue, Costs and Gross Profit_Hexun
• Limited Company
• Limited Company
• Plasson Bio-Engineering Co., Ltd. 2025 Annual Report
• China Animal Husbandry Industry (600195)_Company Announcements_China Animal Husbandry Industry: 2025 Annual Report_Sina Finance_Sina.com
• [[Financial Report]: Plasson: Plasson 2025 Annual Report - Fxbaogao](https://www.fxbaogao.com/detail/5387476?utm_source=openai)
• Kexin Biology (688526)_Company Announcements_Kexin Biology: 2025 Annual Report_Sina Finance_Sina.com
• Ringpu Biology Co., Ltd. 2025 Annual Report
• Bio-Technology (600201)_Stock Quote, Market Overview_CFi.cn
• Jinyu Bio-Tech Stock Price History - Investing.com
• Bio-Technology (600201) - Historical Trading Data | Dabanke
• Bio-Technology (600201) Stock Trend and Technical Analysis_Future Forecast_Buy/Sell Recommendations_Investing.com
• Bio-Technology (600201) Fund Flows_Individual Stock Market Data_THS Finance
• Stock Market Bulletin: Bio-Technology (600201) Main-Fund Net Sales of RMB 27.2692 Million on August 19_Stock Channel_Stockstar
• Bio-Technology (600201) Latest Developments_F10_THS Financial Services

This report was automatically retrieved, compiled and generated by AI based on publicly available information. Information is as of the September 11, 2026 close; 52-week high/low data can be cross-checked as of September 10–11, 2026, but the corresponding exact trading dates have not been reliably confirmed. Information may differ in timeliness; specific data should be based on the company’s formal announcements and authoritative data terminals. This report is for information organization and research reference only and does not constitute investment advice. Investors should make independent judgments and bear their own investment risks.