Core Viewpoint - Wang Zhentao, known as the "Shoe King" of Wenzhou, is facing significant challenges as he contemplates a change in control of Chengdu Kanghua Biological Products Co., Ltd. (Kanghua Biotech), which has led to a temporary suspension of trading for the company [1][3]. Company Overview - Wang Zhentao has transitioned from the traditional shoe industry to the vaccine sector, successfully listing Kanghua Biotech on the Shenzhen Stock Exchange in 2020, with its stock reaching a peak of 996 yuan, making it the highest-priced stock on the ChiNext board at that time [3][5]. - Kanghua Biotech specializes in the research, production, and sales of human vaccines, with its core product being the freeze-dried human rabies vaccine, which is the first of its kind in China [5][8]. Financial Performance - Kanghua Biotech's net profit attributable to shareholders has declined for three consecutive years, with a reported net profit of 399 million yuan in 2024, down 21.71% year-on-year [10][13]. - The company's revenue for 2024 was 1.43 billion yuan, a decrease of 9.23% compared to the previous year [14]. - In the first quarter of 2025, Kanghua Biotech's revenue fell to 138 million yuan, a significant drop of 55.70% year-on-year, attributed to reduced overseas licensing and vaccine sales [10][14]. Control and Ownership Issues - Wang Zhentao's ownership stakes in both Kanghua Biotech and Aokang International are heavily pledged, with 89.20% of his shares in Kanghua Biotech and 99.08% of his shares in Aokang International pledged [20][22]. - The potential change in control of Kanghua Biotech raises uncertainties regarding its future direction and management [1][3].