KANGHUA BIOLOGICAL(SZ:300841) Chang Jiang Shang Bao·2025-07-14 23:46Core Viewpoint - Wang Zhentao, the controlling shareholder of Kanghua Biological, is planning to transfer control of the company after five years of its listing, which may lead to a change in the company's controlling shareholder and actual controller [1][2]. Group 1: Company Control Change - On July 13, Kanghua Biological announced that Wang Zhentao is planning a change in the company's control, which may lead to a change in the controlling shareholder and actual controller [1][2]. - As of now, Wang Zhentao directly and indirectly holds 19.02% of Kanghua Biological's shares, with a market capitalization of approximately 96 billion yuan [2][7]. - The stock price of Kanghua Biological surged by 16% on July 11, prior to the announcement of the control change [2][3]. Group 2: Financial Performance - Kanghua Biological's financial performance has been under pressure, with a significant decline in net profit. The net profit for Q1 2025 dropped by over 86% to 20.71 million yuan [2][10]. - The company experienced rapid growth in its early years post-IPO, with net profits of 408 million yuan in 2020 and 829 million yuan in 2021, but has seen a continuous decline in profits since then [10][12]. - The decline in performance is attributed to reduced vaccine sales and increased market competition, with vaccine revenue accounting for over 90% of total revenue [2][9]. Group 3: Market Reactions and Future Outlook - The stock was suspended from trading starting July 14 to ensure fair information disclosure and avoid abnormal price fluctuations [3]. - Analysts speculate that the control transfer may involve a share transfer of over 10% to 15% of the shares [6]. - The estimated transaction value for the control transfer is expected to exceed 1 billion yuan, not considering any premium [8].