Watson Biologics Plans to Conduct a Private Placement and Change Its Ownership, Potentially Welcoming a Substantial Controlling Shareholder

Domestic vaccine company Watson Bio (SZ300142, stock price 12.28 yuan, market value 19.64 billion yuan) is at a critical turning point.

The company announced on the evening of March 16 that it is planning a private placement that could lead to a change in control, and its stock has been suspended from trading since March 17. This company, which has been “ownerless” since going public in 2010, may soon have a substantive controlling shareholder.

Previously signed a strategic cooperation agreement with Yuxi State-owned Assets Supervision and Administration Commission

Watson Bio announced on the evening of March 16 that it is planning to issue A-shares to specific investors, which may result in a change of control.

Currently, all parties are discussing and negotiating the specific plans, agreements, and related matters. Due to the uncertainty of these matters, and to protect investors’ interests and prevent abnormal stock price fluctuations, the company has applied to the Shenzhen Stock Exchange for a trading halt starting from the market open on March 17. The suspension is expected to last no more than two trading days.

Since its listing in 2010, Watson Bio has long been without a controlling shareholder or actual controller. This planned private placement, which could lead to a change in control, signifies a potential major change in the company’s ownership structure that has been maintained for over a decade.

Notably, in July 2025, Watson Bio announced that it had signed a strategic cooperation framework agreement with Yuxi State-owned Assets Supervision and Administration Commission (hereinafter Yuxi SASAC), which would consider taking a stake. The agreement mentioned that Yuxi SASAC would participate in the company’s capital operations through subscribing to new shares and jointly establishing a private equity fund, supporting the company in optimizing its equity structure and strengthening its capital base. At that time, industry insiders speculated that Yuxi SASAC might take control of Watson Bio.

On February 11, 2026, Watson Bio announced that it would jointly establish a 1 billion yuan biotech industry investment fund with Guotou Chuangyi and Yuxi SASAC, with Watson Bio contributing 450 million yuan and Yuxi SASAC contributing 250 million yuan, further strengthening their partnership.

Whether Yuxi SASAC will formally take control by subscribing to the private placement shares is the biggest focus of this control change.

Outstanding overseas business performance last year

Behind the planned change of control are the operational pressures Watson Bio has faced in recent years.

According to the company’s 2025 performance forecast, Watson Bio expects to achieve an operating revenue of 2.4 billion to 2.43 billion yuan for the year, continuing to decline from 2.821 billion yuan in the previous year. Although net profit attributable to shareholders is expected to grow by 13% to 34% to between 160 million and 190 million yuan, non-recurring net profit is estimated to be between 85 million and 99 million yuan, a year-on-year decrease of 9% to 22%. The company explained that during the reporting period, the overall domestic and international vaccine markets remained in a downward cycle, with total revenue from vaccine products decreasing by about 8% compared to the previous year.

However, overseas performance has been a bright spot in Watson Bio’s recent results. The financial report shows that in 2025, revenue from overseas vaccine products continued to grow, with export vaccine revenue increasing by approximately 35% year-over-year.

As for stock performance, as of the close on March 16, Watson Bio was trading at 12.28 yuan per share, with a total market value of about 19.64 billion yuan.

On one hand, there is anticipation of a new controlling shareholder; on the other hand, the company’s fundamentals are facing a decline in performance. Whether this change in control can bring new opportunities to this “vaccine veteran” company remains to be seen.