Core Viewpoint - The article discusses the sale of a vaccine company by Wang Zhentao, the founder of Aokang International, highlighting the challenges faced by the vaccine market and the strategic decision to divest from a declining business [1][3][21]. Group 1: Transaction Details - Wang Zhentao and his associates sold their shares in Kanghua Biological to Shanghai Wankexin Biological for a total of 1.85 billion yuan [1]. - The acquisition involves a performance-based agreement requiring a total net profit of no less than 728 million yuan for the years 2025 and 2026, along with a minimum R&D investment of 260 million yuan [5][6]. - If performance targets are not met, Wang Zhentao and Aokang Group must compensate the difference in cash [6]. Group 2: Company Performance - Kanghua Biological's core product, the freeze-dried human rabies vaccine, has seen a significant decline in market performance, with the number of vaccine batches issued dropping over 40% in 2024 [9]. - The company's revenue for 2024 was approximately 1.43 billion yuan, a decrease of 9.23% from the previous year, while net profit fell by 21.71% to around 400 million yuan [10]. - The company’s market capitalization has shrunk to below 10 billion yuan, reflecting a broader decline in performance [10][17]. Group 3: Background of Wang Zhentao - Wang Zhentao, known as the founder of "China's first men's shoe stock," ventured into the vaccine industry with an investment of 800 million yuan, but faced challenges in this new field [2][16]. - His attempts to innovate within the vaccine sector, including the development of new vaccines, have not yielded significant results, leading to the decision to exit the business [11][13]. - Wang's financial situation is under pressure, with high levels of share pledges in both Aokang International and Kanghua Biological, indicating a need for liquidity [21][22]. Group 4: Market Context - The vaccine market has become increasingly competitive, with new technologies and production capabilities leading to a decline in Kanghua Biological's market position [9][23]. - Aokang International has also faced difficulties, with a reported cumulative loss of 683 million yuan over the past three years, contributing to Wang's decision to divest from Kanghua Biological [24][30].

Core Viewpoint - The control change at Kanghua Biotech, led by its actual controller Wang Zhentao, signifies the potential disintegration of the vaccine empire he built, as both of his listed companies face significant challenges [1][8]. Group 1: Company Performance and Challenges - Kanghua Biotech, once a high-flying stock, saw its share price peak at 996 yuan, with a market cap exceeding 17.8 billion yuan, but has since faced a decline due to falling performance and increased competition [2]. - The company's core product, the human diploid rabies vaccine, accounts for over 97% of its revenue, but its market position is being eroded by competitors like Kangtai Biotech, which achieved a first-year issuance of 3.37 million doses, nearly matching Kanghua's 3.89 million doses, a year-on-year drop of 43.83% [4]. - In 2024, Kanghua Biotech's revenue is projected to decline by 9.23%, while sales expenses are expected to rise by 10.68% to 547 million yuan, and R&D investment has been cut by 47.81% [5]. Group 2: Financial and Governance Issues - The net profit attributable to the parent company plummeted from 829 million yuan in 2022 to 20.7 million yuan in Q1 2025, a staggering year-on-year drop of 86.14% [6]. - Wang Zhentao's other business, Aokang International, has also faced significant losses, with cumulative losses exceeding 670 million yuan from 2022 to 2024, and a projected loss of 87 million yuan in the first half of 2025 [6]. - High equity pledge rates are concerning, with Wang Zhentao's stake in Kanghua Biotech pledged at 89.20%, and Aokang Group's stake at 71.91%, indicating financial strain [2][3]. Group 3: Strategic Moves and Future Outlook - To address its reliance on a single product, Kanghua Biotech is attempting to expand internationally by licensing the development of a six-valent norovirus vaccine, with a potential transaction value of 270 million USD, although clinical trials have not yet commenced [7]. - The transition of control at Kanghua Biotech reflects broader trends in the industry, where the lack of core competitive advantages leads to the unraveling of previously successful cross-industry ventures [8].