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].