Zhengye Biotechnology Holding Releases 2026 Chairman's Shareholder

Dear Shareholders,

As we enter 2026, on behalf of the management of Zhengye Biotechnology Holding Limited, I am proud of the milestones we achieved in 2025 and would like to share our strategic vision for 2026 and the years ahead.

In 2025, China's swine industry continued to consolidate, with large-scale producers gaining market share and raising standards for vaccine quality and technical service. In response, Zhengye strengthened its research and development ("R&D") activities, achieved regulatory milestones, and strengthened its operational platforms. I am deeply encouraged by what our team accomplished. The milestones we achieved are not just metrics on paper—I believe they represent real competitive advantages that position us to capture meaningful opportunities as China's swine industry continues to modernize. These achievements position the Company to better serve the evolving needs of large-scale domestic customers while supporting continued expansion in selected international markets.

Core Achievements in 2025: A Year of Strategic Execution and Innovation

Over the past year, we focused on strengthening our innovation capabilities, advancing regulatory milestones, and building operational excellence to capture opportunities in an evolving industry landscape. What guided us through these efforts was our unwavering commitment to becoming a world-leading manufacturer that delivers reliable veterinary vaccines to customers around the world. Every patent filed, every regulatory approval earned, and every capability enhanced represents a deliberate investment in our future competitiveness and our ability to better serve our customers.

1. R&D Innovation and Regulatory Milestones

• Expanded Intellectual Property: We secured four new patent grants in 2025, two for inventions and two for utility models, and filed ten new patent applications to sustain our innovation pipeline.
• Two National Category I and One National Category III New Veterinary Drug Registration Certificates: In 2025, the Ministry of Agriculture and Rural Affairs approved two National Category I New Veterinary Drugs of our Company: Live Vaccine for Mycoplasma Bovis (Strain HB150) (2025 No.11) in February 2025, and Pentavalent Inactivated Vaccine for poultry diseases (2025 No. 18) including Newcastle Disease, Infectious Bronchitis, Avian Influenza (H9), Infectious Bursal Disease, and Avian Adenovirus (Group I, Serotype 4) in March 2025. We also obtained a National Category III Certificate (2025 No.75) for the Bivalent Live Vaccine for Newcastle Disease and Infectious Bronchitis, with Thermotolerant Stabilizer (La Sota strain + SZ160 strain) in July 2025. This designation not only recognizes our milestone in first-of-kind innovations but also grants a monitoring protection period of up to five years.
• Strengthened Product Portfolio: We secured seven new product approval licenses, including vaccines for swine, poultry, cattle, and sheep, marking a key milestone for commercialization of these products. We expect further diversification of our product offerings across multiple species.
• Growing R&D Pipeline: Eight new veterinary drug registration projects are under review, including vaccines for swine, poultry, and companion animals, with several expected to receive approvals in 2026. Two clinical trials are underway and three pre-clinical projects are progressing. Six clinical trial projects passed Good Clinical Practice inspection by the Ministry of Agriculture and Rural Affairs in June 2025.
• Enhanced R&D Platform: We were approved to establish the Jilin Province Animal Vaccine Science and Technology Innovation Center with government funding of RMB800,000 in January 2025, were certified as a "Doctoral Innovation Station" in September 2025, and passed the fifth consecutive National High-Tech Enterprise certification in October 2025.
• Industry Recognition: Our flagship product "Zhengyuanzhen" received the "Excellent Vaccine Product of the Year" award at the 2025 China Swine Industry Glory List in October 2025, and our operating entity, Jilin Zhengye Biological Products Co., Ltd., was recognized as a "Jilin Province Manufacturing Single Champion Enterprise" for our PCV2 subunit vaccine and certified as a "Specialized and Innovative" Small and Medium-sized Enterprise for the second time in November 2025.
• Industry-Academia Collaboration: Three of our Company leaders were appointed as Industry Professors at universities in Jilin Province, strengthening our partnerships in talent development and research collaboration.
  
  
  
   

2. Advancing International Market Expansion

 

• Egypt: We submitted registration materials for three poultry vaccines in December 2025, with approvals expected in the first half of 2026.
  
   
• Pakistan: We completed registration submissions for three poultry vaccines in early 2025 and passed a video-based Good Manufacturing Practice ("GMP") inspection by the Drug Regulatory Authority of Pakistan in November 2025, with approvals granted on January 16, 2026.
• Vietnam: We submitted registration materials for two poultry vaccines in 2025, with approvals expected to be obtained progressively throughout 2026.
  
  
  
   

3. Enhanced Production Capabilities and Digital Transformation

 

• Production Capability Upgrade: We upgraded our bacterial inactivated vaccine production line to include bacterial culture subunit vaccine capabilities. This enhancement is expected to expand the scope of our production lines and lay the foundation for producing bacterial subunit vaccines for both current and future products.
  
   
• Digital Transformation: We completed computerization of key production processes in compliance with Ministry of Agriculture Announcement No. 919, which is anticipated to allow for intelligent control of core manufacturing steps, with a goal of reducing human error and achieving product quality consistency.
  
  
  
   

4. Other Business Development

 

• Beijing Zhongnong Zhengye Biotechnology Co., Ltd. ("Beijing Zhongnong Zhengye"): In order to comprehensively enhance poultry vaccine sales, increase our market share, and create new sales growth drivers, we established Beijing Zhongnong Zhengye, which is responsible for operating the Company's poultry vaccine business.
  
   
• Swine Health Business Unit: We established a dedicated swine health business unit integrating sales, technical service, and marketing, with a goal of supporting key accounts and addressing customer needs.
• Large Customer Progress: We established commercial relationships with 40% of enterprises with over 10,000 breeding sows.
• Technical Service Expansion: Jilin Zhengye Biological Products Co., Ltd. partnered with China Agricultural University to establish the "China Agricultural University-Zhengye Biological Animal Disease Joint Testing and Service Center," and collaborated with Harbin Veterinary Research Institute and other institutions in China's veterinary field to provide laboratory monitoring services for customers, aiming to support disease control and customer development.
  
  
  
   

5. Nasdaq Listing

 

• Capital Markets Milestone: In January 2025, we successfully completed our initial public offering and listing on the Nasdaq Capital Market under the ticker symbol "ZYBT", which is expected to strengthen our capital foundation, enhance global visibility, and provide resources to support our long-term R&D and commercial growth initiatives.
  
  
  
   

Strategic Outlook for 2026: Building on a Foundation of Strength

As we look to 2026, we are encouraged by the signs of gradual recovery of China's swine market, with industry expectations for a price inflection point around mid-year. More importantly, the capabilities we have built, our expanded product portfolio, strengthened international presence, and enhanced operational platforms provide a solid foundation for our next stage of growth. Building on our foundation, we plan to focus on the following strategic priorities:

1. Deepening Strategic Customer Engagement

 

• Resource and Channel Integration: Our Swine Health Business Unit is intended to further integrate resources and channels, innovate marketing models, and attract top talent to better serve key accounts.
  
   
• Project-Based Customer Development: We expect to implement a project-based structured engagement initiatives for the top 130 large-scale producers and deploy dedicated tools and cross-functional teams to build long-term partnerships.
  
  
  
   

2. Strengthening Product Portfolio with Solution-Based Marketing

• Flagship Product Leadership: We plan to solidify the market leadership of our core product, "Zhengyuanzhen," and advance the development of our PCV3 vaccine, which has been designated a Jilin Province Key R&D Project for 2026.
  
   
• Comprehensive Disease Solutions: We anticipate to promote swine Mycoplasma live and inactivated vaccine combination protocols, as well as our PCV2-Mycoplasma dual vaccine, which is expected to launch in 2026. These solutions are designed to support customers in achieving higher-level herd control and purification goals.
• Cultivating New Growth Drivers: We intend to launch targeted technical service programs for Pseudorabies eradication, Rotavirus and Porcine Epidemic Diarrhea control, and ongoing Clostridium perfringens pressure assessment and control efforts.
  
  
  
   

3. Building an Empowering Customer Service Ecosystem

 

• Laboratory Service Network: We expect to establish a collaborative laboratory network for disease monitoring, with a goal of providing targeted disease prevention and control solutions to customers.
  
   
• Training and Education: We plan to deploy resources to deliver technical and product training with enhanced online promotion to address customer needs and drive customer development.
• Key Opinion Leaders (KOLs) Partnerships: We anticipate to establish a Chief Scientist position and expand partnerships with KOLs to strengthen brand authority and market influence. 
  
  
  
   

4. Strategic Expansion into Companion Animal Sector

 

• Merger and Acquisition Strategy: We plan to advance merger and acquisition initiatives in 2026, with a primary focus on the companion animal sector. We believe this segment represents an attractive and structurally resilient area of growth, supported by favorable industry dynamics and rising demand for animal health solutions. Through a disciplined and selective approach, we intend to leverage mergers and acquisitions as a strategic tool to broaden our product portfolio, enhance our capabilities, and accelerate our development in the companion animal market, while remaining aligned with our overall strategic direction and operational strengths.
  
  
  
   

On behalf of the entire Zhengye team, I extend my deepest appreciation to our shareholders for your unwavering support and trust in our vision. Your confidence enables us to remain focused, disciplined, and committed to building enduring value. Our achievements to date reflect not only the progress we have made, but also the collective effort, perseverance, and sense of responsibility shared across our organization. As we move forward, we remain dedicated to strengthening our capabilities and building a company that earns the trust of customers, partners, and shareholders alike. Together, we intend to continue to advance innovation and growth, and remain firmly committed to delivering sustainable, long-term value for our shareholders.

Sincerely,

Zhenfa Han

Chairman of the Board of Directors

Zhengye Biotechnology Holding Limited