Shareholder Plans "Liquidation-Style" Reduction, Zhaoyanzb Pharmaceutical Stock Hits Daily Limit Down, Latest Response Released

Zhaoyan New Drug plummeted on March 17, with the stock hitting the daily limit down. According to news, shareholder Gu Xiaolei and his concerted action partner Gu Meifang plan to “clear out” their holdings.

On the evening of March 16, the company disclosed an announcement regarding the reduction plan of A-shares by shareholders. The announcement states that shareholder Gu Xiaolei and his concerted action partner Gu Meifang intend to reduce approximately 20.42 million and 10.32 million shares respectively within three months after the announcement, through Shanghai Stock Exchange’s centralized bidding, accounting for about 4.1026% of the company’s current total share capital. Currently, Gu Xiaolei and Gu Meifang hold about 20.42 million and 10.32 million A-shares, representing 2.7251% and 1.3775% of the shares respectively. These shares originate from pre-IPO restricted shares and other sources such as the company’s capital reserve converted into shares. Gu Xiaolei and Gu Meifang are not controlling shareholders or actual controllers of the company, and this reduction will not lead to a change in control of the company.

In response, a staff member from Zhaoyan New Drug’s Securities Department told China Securities Journal·CSEC Taurus that the sharp decline in stock price was mainly influenced by the news of the reduction. The shareholders had been gradually reducing their holdings previously, but this time the scale of reduction exceeded market expectations, resulting in a significant market reaction.

Previously, Zhaoyan New Drug disclosed a performance forecast indicating that the company expects to achieve operating revenue of approximately 1.573 billion to 1.738 billion yuan in 2025, a decrease of about 13.9% to 22.1% year-on-year. The net profit attributable to shareholders of the listed company is expected to be about 233 million to 349 million yuan, a year-on-year increase of 214% to 371%. Among them, the fair value change of biological assets contributed a net profit of about 452 million to 499 million yuan. Laboratory services and other businesses are expected to generate a net loss of about 206 million to 130 million yuan.

Regarding this, the securities department staff told reporters that the company’s order situation in 2025 is positive, but revenue decline is mainly due to a lag between actual orders and revenue recognition. The large fluctuation in the fair value of biological assets is mainly because the prices of monkeys have been at historic lows in recent years. According to third-party valuation data in 2025, monkey prices have risen sharply, leading to a significant contribution to net profit from the fair value change of biological assets.

“The company’s monkeys are divided into breeding monkeys and experimental monkeys. The company’s monkeys mainly rely on breeding. Breeding monkeys and experimental monkeys are kept separate and are not interchanged. Breeding monkeys may age over time, but experimental monkeys generally do not have this issue. Overall, the company’s monkey stock has not changed significantly. Monkey prices were low in 2023 and 2024, but increased considerably in 2025, contributing greatly to net profit,” the staff member explained.