Zhengye Reports $0.06 Per-Share Loss in First Half as Revenue Falls 18.3%
Key Facts
Zhengye Biotechnology reported unaudited financial results on November 12, 2026, for the six months ended June 30, including a basic and diluted loss of $0.06 per share. The figures cover the first half of the year, while the cited disclosures do not provide confirmed third-quarter results. The per-share loss was 0.40 yuan, compared with 0.46 yuan in the same period of 2025. The results also showed a year-over-year decline in revenue, amid customer cost pressures and lower sales volume. The company said gross margin improved during the period, supported mainly by its other vaccines segment.
Revenue fell 18.3% to 50.9 million yuan in the first half of 2026, from 62.3 million yuan in the same period a year earlier. The company attributed the decline to customers’ continuing losses and cost-cutting requirements, which led to lower overall sales volume. That explanation puts customer demand and spending pressures at the center of the activity decline during the period. Lower revenue did not prevent gross margin from improving, rising to 32.9% from 31.1%, an increase of 1.8 percentage points. Co-CEO Song Lin Song said the company “is optimistic about the improvement in gross margin to 32.9%,” linking it to discipline in cost control and operations.
Total operating expenses fell to 37.572 million yuan in the six months ended June 30, 2026, from 48.263 million yuan in the comparable period. Research and development expenses dropped to 4.770 million yuan, from 8.969 million yuan a year earlier. The expense reductions coincided with an improvement in gross margin, while the company continued to report a per-share loss. On liquidity, cash and restricted cash totaled 31.9 million yuan on June 30. Working capital also stood at 5.1 million yuan on that date.
Operating activities used net cash of 16.8 million yuan in the first half, compared with 14.0 million yuan in the same period a year earlier. Management said the renewal of short-term bank loans, together with its projected cash flow plan, should provide sufficient liquidity to meet obligations. This places liquidity and short-term financing among the key areas to monitor following the first-half results. On business plans, Co-CEO Aiden Han said Zhengye aims to expand its presence in companion animal vaccines, including developing vaccines for cats and dogs. He added that the company is exploring further opportunities in Africa, Central Asia and West Asia.
ZYBT shares closed at $1.50 on November 12, 2026, according to EL7 data. The closing price came on the day the company announced results for the six months ended in June, not a report for the third quarter. The closing data provide an indication of the share price in that session, without documented details here on the trading range during the session. The first half remains the financial period covered by the company’s available disclosure. Management’s stated priorities focus on cost control, expanding its companion animal vaccine business and exploring new markets.