JILIN — November 12, 2026 -- Zhengye Biotechnology Holding Limited (Nasdaq: ZYBT) narrowed its net loss by 13.3% to RMB22.2 million (US$3.3 million) in the six months ended June 30, 2026, even as net revenue fell 18.3% to RMB50.9 million from RMB62.3 million. The improvement came from cost cuts, not sales: operating expenses dropped 22.2% to RMB37.6 million, while cash fell to RMB31.9 million from RMB50.3 million at December 31, 2025.
Swine vaccines bring in 75% of revenue and roughly all gross profit
Swine vaccines generated RMB38.2 million of revenue, down 18.2% from RMB46.7 million and equal to 75% of the group total by FairsOnline's calculation. At a gross margin of 44.3%, against 45.9% a year earlier, swine alone works out to about RMB16.9 million of gross profit. That is slightly more than the group's reported RMB16.7 million, because poultry vaccines still run at a negative 2.9% margin.
Poultry revenue fell 7.1% to RMB6.5 million from RMB7.0 million. Other vaccines fell 27.9% to RMB6.2 million from RMB8.6 million. The company attributes the declines to lower volumes: cost-cutting by key swine customers, weak poultry demand and lower demand from key customers in other vaccines.
Group gross profit fell 13.9% to RMB16.7 million from RMB19.4 million. The gross margin rose 1.8 percentage points to 32.9%, entirely because of other vaccines. Their margin moved from negative 20.8% to 0.4% after sales of sheep vaccines, which carry high unit and fixed production costs, declined. The margin gain therefore reflects lower volume of a loss-making product, not higher prices or better efficiency.
Lower pay, travel and IPO-related costs cut operating expenses by RMB10.7 million
Operating expenses fell by RMB10.7 million, from RMB48.3 million to RMB37.6 million. Research and development spending fell the most in percentage terms, down about 47% to RMB4.8 million from RMB9.0 million. The company cites lower development material costs and the absence of one-time bonuses paid to R&D staff around its initial public offering.
Sales and marketing expenses fell about 20% to RMB18.6 million, on lower sales payroll and travel. General and administrative expenses fell about 19% to RMB13.7 million. The company says professional fees tied to IPO preparation in the first half of 2025 did not recur.
Operating loss narrowed by 27.9%, according to co-CEO Songlin Song. Basic and diluted loss per share was RMB0.40 (US$0.06), compared with RMB0.46.
Cash fell 37% in six months as financing inflows dropped 89%
Cash declined by RMB18.4 million, or about 37%, from RMB50.3 million at December 31, 2025 to RMB31.9 million at June 30, 2026. The balance equals about 1.9 times the RMB16.8 million of net cash used in operating activities in the period, up from RMB14.0 million a year earlier.
Investing outflows rose to RMB5.7 million from RMB0.7 million. Financing inflows were RMB4.6 million, about 89% below the RMB42.3 million in the first half of 2025, the period of the company's IPO preparations.
Zhengye plans cat and dog vaccines and new export regions
Co-CEO Aiden Han says the company aims to expand into household animal vaccines, including products for cats and dogs. Its products are already exported to Vietnam, Pakistan and Egypt. Han says Zhengye intends to explore opportunities in Africa, Central Asia and West Asia. The company did not disclose a timeline or budget for either plan.