Financial wizardry! With only 2 billion yuan investment, secured control of a 20 billion yuan vaccine giant—son of renowned Fujian businessman Huang Rulun, Huang Tao makes a move. Century Jingyuan group takes over Watson Biologics, expanding A-share portfolio to 3 companies!

Why did Huang Tao switch to an agreement with concerted action partners to acquire Watson Bio after regulatory tightening?

The buyer for vaccine giant Watson Bio has emerged: Huang Tao, son of well-known Fujian businessman Huang Rulun, has stepped in, expanding the Century Golden Source group on the A-share market to three companies!

On the evening of March 18, Watson Bio announced that the company plans to issue shares to Tengyun Xinwo to raise no more than 2.003 billion yuan. After deducting issuance costs, all funds will be used to supplement working capital. Once the issuance is completed, Tengyun Xinwo will become the controlling shareholder, and Huang Tao, the actual controller of Tengyun Xinwo, will become the actual controller of the company. The company’s stock will resume trading from the market open on March 19 (Thursday).

Notably, Tengyun Xinwo’s main funding comes from Tengyun Health, which is 100% funded by Century Golden Source. The ultimate controller behind it is Huang Rulun’s son, Huang Tao, who currently leads Century Golden Source. Previously, Century Golden Source acquired Wutong Technology in 2022 and took over Annor in June 2025. If this change of control proceeds smoothly, Watson Bio will become the third listed company in the A-share market controlled by Century Golden Source.

Skilled in financial tactics!

There are two key points to note in this acquisition: First, Huang Tao maintained his consistent style of capital operation, with some new changes, but ultimately maximized control leverage. In the non-public offering, Tengyun Xinwo acquired 11.51% of Watson Bio for 2.003 billion yuan, at a valuation of 19.64 billion yuan, which is very cost-effective for Tengyun Xinwo, aiming for control.

When taking over Annor, Huang Tao used the “waiver of voting rights” strategy, acquiring 13.03% of Annor for 422 million yuan, becoming the new actual controller of the “first children’s clothing stock” on A-shares. The “Regulations on the Supervision and Administration of Listed Companies,” which ended public consultation on January 5, 2026, stipulate that “shareholders shall not exercise voting rights through any means on behalf of others according to others’ wishes”; “Shareholders who waive voting rights are still subject to obligations such as information disclosure, mandatory bids, and restrictions on transfer of shares,” blocking the path to evade major shareholder obligations through voting rights waiver.

Under the strict regulation of voting rights waiver, Huang Tao had to abandon this method. Instead, he sought allies through agreements on concerted action. Century Golden Source signed agreements with Li Yunchun, Chengdu Xiyun, and Guangzhou Yingwo, among which Li Yunchun is one of Watson Bio’s founders. With the 11.51% stake, Century Golden Source and its concerted parties hold a total of 14.46%, changing the controlling shareholder to Tengyun Xinwo, and the actual controller to Huang Tao. After this issuance, Century Golden Source holds nominations for four non-independent directors and two independent directors, accounting for over half of the board.

Second, Tengyun Xinwo, which took on the cap operation, was established on February 12, 2026, just one month before the transaction.

Price wars continue in the vaccine sector

As for why Huang Tao is interested in Watson Bio, the announcement did not specify.

Since its listing on the Shenzhen Stock Exchange ChiNext in 2010, Watson Bio has long been without a controlling shareholder or actual controller. As of the third quarter of 2025, the largest shareholder is E Fund ChiNext ETF with 2.16%, with founders Liu Junhui and Li Yunchun holding 1.81% and 1.70%, respectively. This control change will end Watson Bio’s scattered shareholding pattern.

Besides the lack of a controlling shareholder, Watson Bio and its vaccine sector are currently at the bottom of the industry cycle.

Watson Bio’s earnings forecast shows that in 2025, revenue is expected to be between 2.4 billion and 2.43 billion yuan, compared to 2.821 billion yuan in the same period last year; net profit attributable to shareholders is estimated at 160 million to 190 million yuan, up 13% to 34%; net profit after non-recurring gains and losses is expected to be 85 million to 99 million yuan, down 9% to 22%. The company explained that during the reporting period, the overall domestic and international vaccine markets remain in a downward cycle, with total revenue from vaccine products decreasing by about 8% year-over-year.

The HPV vaccine sector that Watson Bio is involved in is a key battleground for price wars. Previously, 11 A-share vaccine companies released 2025 performance forecasts, with 7 expecting a decline in net profit attributable to shareholders.

Since 2023, the age extension of the nine-valent HPV vaccine has advanced, squeezing the space for domestically produced bivalent HPV vaccines, leading to price wars in bidding markets. In 2024, the price war intensified, with many bivalent vaccines priced below 100 yuan per dose. In 2025, with Wantaibio’s nine-valent HPV vaccine approved, the fierce competition in HPV vaccines continues.

In this price war, Watson Bio has personally driven the bivalent HPV vaccine price down to “milk tea price.” In August 2024, the Shandong Provincial Center for Disease Control and Prevention announced the procurement of HPV vaccines for school-aged girls, with Watson Bio’s subsidiary winning at a unit price of 27.5 yuan, setting a new low for bivalent HPV vaccine prices.

According to Southwest Securities research, in 2025, overall vaccine industry demand remains weak, with competition worsening. Core categories like HPV and flu vaccines face declining approval volumes and prices, putting short-term performance under significant pressure.

Affected by the price war, Watson Bio’s stock price has fallen from about 40 yuan at the start of 2023 to 12.28 yuan now, a decline of nearly 70%.

Behind the Century Golden Source group

Data shows that Century Golden Source Group was founded by Huang Tao’s father, Huang Rulun. It is reported that Huang Rulun started with real estate projects in Fuzhou and achieved great success with the “city-building” model in Beijing’s Century City, once ranking among the top ten real estate companies nationwide. After completing a leadership transition in 2018, Huang Tao shifted from traditional real estate to capital operations.

On June 21, 2017, according to Fujian Daily, Huang Rulun was suspected of bribery crimes and was removed from his position as a standing member of the 11th Fujian Provincial Committee of the Chinese People’s Political Consultative Conference, and his CPPCC membership was revoked. Previously, Century Golden Source was named in the indictment of former Yunnan Party Secretary Bai Enpei for bribery.

In January 2018, Huang Rulun transferred 50% and 30% of his company shares to his son Huang Tao and Huang Shiying through equity transfer agreements. After the transfer, Huang Tao held 60%, Huang Shiying 40%, and control of the company shifted from Huang Rulun to Huang Tao. Huang Rulun also resigned as executive director and general manager, with Huang Tao succeeding him.

According to the 2025 Hurun Global Rich List, Huang Rulun and Huang Tao’s family rank 732nd with assets of 36 billion RMB. Data from Hurun Research Institute shows that their wealth remained between 34 billion and 35.5 billion RMB from 2022 to 2024. Compared to many other real estate tycoons’ families experiencing sharp declines and reshuffles, the “Century Golden Source” family’s wealth has remained remarkably stable.