Watson Biologics Plans a Private Placement, May Clarify the Actual Controller for the First Time

Does AI · Yuxi State-owned Capital’s involvement indicate a change in control?

On March 17, China News Service (Lin Wansi) reported that on the evening of March 16, Yunnan Watson Biotechnology Co., Ltd. (hereinafter referred to as Watson Biotech) announced that it is planning to issue A-shares to a specific target, which may lead to a change in the company’s control. To protect the interests of investors and prevent abnormal fluctuations in the company’s stock price, trading of the company’s shares has been suspended from the market opening on March 17 (Tuesday), with an expected suspension period of no more than two trading days.

The announcement did not specify the potential controlling party. Watson Biotech stated that currently, all parties are discussing and negotiating specific plans, agreements, and related matters, with the final details subject to the agreements signed by all parties.

According to the 2025 semi-annual report, Watson Biotech is a company engaged in the research, development, production, and sales of biotechnological products such as human vaccines. It is China’s first and the world’s second company to independently develop and successfully list the 13-valent pneumococcal conjugate vaccine, and also China’s second and the world’s fourth company to independently develop and successfully list the HPV vaccine.

However, since its listing in 2010, Watson Biotech has never had a true controlling shareholder. The third quarter of 2025 shows that the largest shareholder is Industrial and Commercial Bank of China Limited – E Fund Thematic Index Securities Investment Fund, holding 2.16%.

This announcement may indicate that Watson Biotech will officially identify its actual controller for the first time.

Additionally, the second-largest shareholder Liu Junhui and the third-largest shareholder Li Yunchun each hold 1.81% and 1.70% of the shares, respectively. Over the 15 years since listing, both have reduced their holdings multiple times. The 2010 annual report showed that Liu Junhui and Li Yunchun held 11.39% and 15.05%, respectively, at that time.

Notably, in July 2025, Watson Biotech announced that it had signed an agreement with Yuxi State-owned Capital Operation Co., Ltd. (hereinafter referred to as Yuxi Operation) to cooperate strategically in capital operations. During the agreed cooperation period, Yuxi Operation will actively participate through subscribing to the company’s shares, engaging in fund investments led by the company, and industry mergers and acquisitions, supporting the company in optimizing its equity structure and strengthening its capital base. Industry insiders speculated that Yuxi State-owned Capital might take control of Watson Biotech.

In February 2026, Watson Biotech further announced that it, together with Guotou Chuangyi Industrial Fund Management Co., Ltd., Yuxi Operation, and the Central Enterprise Rural Industry Investment Fund Co., Ltd., jointly initiated the establishment of the Yunnan Chuangwo Biotech Industry Investment Fund, with a target scale of 1 billion yuan. Watson Biotech contributed 450 million yuan as a limited partner.

As of the close on the 16th, Watson Biotech’s stock price was 12.28 yuan per share, with a market value of 19.6 billion yuan.

(For more information, please contact the author Lin Wansi: linwansi@chinanews.com.cn) (China News Service App)

(The views expressed herein are for reference only and do not constitute investment advice. Investing involves risks; please proceed with caution.)

Editor: Chang Tao, Luo Kun