Three times in four years taking control of A-shares, what did Fujian tycoon Huang Tao's latest 2 billion investment in Watson Bio reveal he is interested in?

Ask AI · Huang Tao’s previous two entries were not successful; what strategic shift does he have in betting on Watson Biotech this time?

Interface News reporter Zhao Yangge

The capital market is never short of “hunters,” but Fujian tycoon Huang Tao’s acquisition of three listed companies within four years continues to draw market attention. This time, Huang Tao has acquired Watson Biotech (300142.SZ), which once thrived in the vaccine sector, through a targeted placement exceeding 2 billion yuan.

However, looking back at his previous acquisitions of Wantong Technology (002331.SZ) and Annail (002875.SZ), the performance in terms of turning around results or asset integration has been less than impressive. The acquisition of controlling interest in Watson Biotech at a “discount price” raises the question: is this a precise strategy for bottom-fishing, or merely a repetition of capital operations?

Watson Biotech is at a significant moment. According to disclosures, the company plans to issue shares to Beijing Tengyun Xinwo Biological Technology Partnership (Limited Partnership) (hereinafter referred to as “Tengyun Xinwo”), aiming to raise no more than 2.003 billion yuan to supplement the company’s working capital. Tengyun Xinwo plans to fully subscribe in cash, with the issuance price set at 9.63 yuan per share, representing a certain “discount” compared to the current price.

If the transaction proceeds smoothly, Tengyun Xinwo will hold 11.51% of Watson Biotech’s shares, combined with the holdings of concerted actors, totaling 14.46% of the voting rights, making it the new controlling shareholder of the company. This also means that Watson Biotech’s long-standing situation without a controlling shareholder or actual controller will come to an end.

The announcement shows that Tengyun Xinwo was established on February 12, 2026, with a capital contribution of only 1 million yuan, backed by its major shareholder, Century Jinyuan Investment Group Co., Ltd. (hereinafter referred to as “Century Jinyuan”), with Huang Tao as the actual controller.

Source: Announcement

Public information shows that Huang Tao, born in 1976, is the son of Huang Rulun. In the “2026 Hurun Global Rich List” released by the Hurun Research Institute on March 5, the Huang Rulun and Huang Tao family ranked 871st with a wealth of 35.5 billion yuan.

Interface News noted that in 2022 and 2025, Huang Tao respectively acquired actual control of Wantong Technology and Annail.

Source: Announcement

In addition to the two companies mentioned above, Huang Tao also holds 6.29% of the shares of Pathfinder (300005.SZ), 9.11% of China Financial International (00721.HK), 9.03% of Xinming Life Technology (00474.HK), 12.53% of First Service Holdings (02107.HK), and 11.65% of Agricultural Bank Life Insurance Co., Ltd.

However, Huang Tao’s journey to gain control of listed companies has not always been smooth sailing. When he took over Wantong Technology, he experienced a complex equity battle that lasted nearly two years. In this instance of acquiring Watson Biotech, Huang Tao chose a more “gentle” path of targeted issuance, but whether the subsequent progress will be smooth remains to be seen.

After Huang Tao took over Wantong Technology and Annail, the fundamentals of the two companies did not undergo a fundamental turnaround.

Public information shows that when Huang Tao took over Wantong Technology, the company had already reported losses for two consecutive years. After the takeover, Wantong Technology did implement a series of strategic adjustments, including establishing a headquarters in Beijing, divesting its military electronics business (selling the loss-making subsidiary Saiying Technology), and entering the smart environmental protection sector by acquiring Huatuo Lisheng. Currently, Wantong Technology is also planning a targeted issuance, aiming to raise no more than 600 million yuan, with the issuance targets being Tibet Tengyun and Jingyuan Huizhi—both of which are actually controlled by Huang Tao, with the goal of injecting capital and consolidating control.

However, despite frequent actions, Wantong Technology’s performance has been disappointing. From 2022 to 2024, the company’s net profits were -103 million yuan, -78.41 million yuan, and 36.9165 million yuan, respectively. In 2025, the company is expected to incur a loss of up to 218 million to 368 million yuan, partly due to indications of impairment in goodwill arising from the acquisition of Huatuo Lisheng, with an expected need to recognize a goodwill impairment provision of 98.4149 million yuan.

“The system services for the hotel upgrades and renovations under the major shareholder are what the company is doing,” a relevant person from Wantong Technology stated when contacted by Interface News. They added that due to limited upgrade and renovation needs, some projects still require external bidding, resulting in relatively low business volume. The company is also cautious about related transactions. As for whether the major shareholder has considerations for injecting quality assets, the person indicated that this matter had been mentioned by investors before and was communicated to the relevant leaders, but no clear conclusion has been reached yet, and any progress will be announced in a timely manner. When discussing operational performance, the person admitted that the current market competition pressure is significant, and the company is striving to secure revenue and stabilize market share.

Looking at Annail again. After the equity transfer was completed, the company’s management quickly underwent a “blood transfusion,” but aside from that, there were no other clear actions. Annail has reported losses for six consecutive years and is expected to continue losing 90 million to 140 million yuan in 2025. The company attributes the losses to multiple factors, including changes in the consumer environment, closure of loss-making stores, adjustments to sales channel structures, and accelerated turnover of old goods.

“We are still primarily focused on children’s clothing, and any adjustments will be announced in a timely manner,” a relevant person from Annail responded when contacted by Interface News.

Watson Biotech is a high-tech biopharmaceutical company focused on the research, production, and sales of human vaccines. The company is not only the first in China and the second globally to independently develop and successfully market the 13-valent pneumococcal conjugate vaccine, which remains the top in domestic market share; it is also the second in China and the fourth globally to independently develop and successfully market the HPV vaccine.

Unfortunately, Watson Biotech’s performance has continued to decline in recent years. From 2022 to 2024, the company’s operating revenues were 5.086 billion yuan, 4.114 billion yuan, and 2.821 billion yuan, with net profits of 729 million yuan, 419 million yuan, and 142 million yuan, respectively. The forecast indicates that the company’s operating revenue for 2025 is expected to be 2.4 billion to 2.43 billion yuan, with net profits projected at 160 million to 190 million yuan, representing a year-on-year increase.

However, specifically speaking, the situation for Watson Biotech remains grim. On the one hand, the company’s non-operating income and expenses are expected to be around 80 million yuan in 2025, higher than the 33.76 million yuan in the same period last year, which somewhat “smooths out” the performance data; on the other hand, both domestic and international vaccine markets are still in a downward cycle, and the total revenue from vaccine products for Watson Biotech in 2025 is expected to decrease by about 8% compared to the same period last year.

So, after Watson Biotech welcomes its new principal, is there room for imagination?

Interface News found on the Century Jinyuan official website that its industries cover real estate development, hotel culture and tourism, commercial operations, life services, big health, smart travel, and other fields, and it has invested in children’s industry, education, financial services, AI technology, new energy, and mining.

In the big health sector, the group owns three major service platforms: Tengyun Family Doctor, Tengyun Specialty, and Tengyun Elderly Care. Among them, the Tengyun Specialty platform includes a well-known ophthalmology medical institution—Shenzhen Guangliang Medical.

The acquisition entity is a company operating in the big health sector, but based on existing business, there is no foundation for synergistic development with Watson Biotech. The equity change document also indicates that the relevant parties have no clear or detailed plans to change Watson Biotech’s main business or make significant adjustments within the next 12 months.

After the equity change is completed, Watson Biotech will replace directors and senior management through early re-election or other means, but the specific re-election plan has yet to be formulated.

Interface News contacted Watson Biotech regarding this matter, and company staff stated that the funds introduced this time can effectively alleviate the company’s current cash flow pressure. At the same time, since the other party also has layouts in the big health sector, both sides may explore further cooperation in the future. The relevant parties are confident about the development prospects of Watson Biotech and are willing to grow together with the company. The staff also emphasized: “Introducing an actual controller is also to change the company’s long-standing situation of having no controlling shareholder, which has been a concern for secondary market investors for a long time.”

Interface News also attempted to contact Century Jinyuan to understand subsequent actions but was unable to reach relevant personnel. Therefore, how Huang Tao will manage the continuously expanding landscape of listed companies remains a suspense.