Watson Biotech's 2 Billion Yuan Increased Offering Planned Change of Control: What Are Capital Veteran Huang Tao's Intentions?

Only suspended for two days, Watson Biotech (300142.SZ) quickly announced a private placement “change of ownership” plan. Huang Tao, the head of Century Golden Source Group, who took control of Annor (002875.SZ) less than a year ago, will make another move.

Specifically, the company plans to issue no more than 208 million A-shares to a targeted entity, Beijing Tengyun Xinwo Biotechnology Partnership (Limited Partnership) (hereinafter “Tengyun Xinwo”). After the issuance, Tengyun Xinwo will hold 11.51% of the shares. The total funds raised are expected to be no more than 2.003 billion yuan, all of which will be used to supplement working capital after deducting issuance costs.

Looking through to the ultimate beneficiaries, Tengyun Xinwo is held by multiple parties. Besides the actual controller Huang Tao and individual Huang Shiying, there are also Watson Biotech’s current third-largest shareholder, one of the company’s founders, Li Yunchun, as well as Zhong Bin, a former independent director of Watson Biotech, and his spouse Ren Xuhong.

Tengyun Xinwo shareholder structure, source: Watson Biotech announcement

At the same time, Li Yunchun, Ren Xuhong, Zhong Bin, and Huang Tao have signed an agreement on concerted actions. All parties promise that, due to their shared business philosophy and common interests, they will maintain consistent actions regarding Watson Biotech’s production and operation, corporate governance, and other major decisions.

If, after full communication and consultation, the parties cannot reach a consensus on voting rights and how to exercise them, the opinions of Huang Tao, Tengyun Biotech, and Tengyun Health will prevail.

After signing the concerted action agreement, Tengyun Xinwo and its concerted parties will hold 14.46% of the voting rights in the company. Following the change in equity, Watson Biotech’s controlling shareholder will be Tengyun Xinwo, with Huang Tao as the actual controller. Watson Biotech may thus end its long-standing status without a true controller.

It is worth noting that the new actual controller Huang Tao has a notable background. According to Qichacha, Huang Tao is an executive director and president of Century Golden Source Group, which originated in real estate. In recent years, he has also been active in the capital markets.

Data shows that Century Golden Source Group was founded by Huang Rulun in 1991. It was known in early Chinese real estate history for its “city-building model,” such as Beijing Century City and Kunming Century City. It attempted to create a closed-loop ecosystem by combining large-scale residential developments with mega shopping centers and five-star hotels. Starting from real estate, Century Golden Source’s business has expanded into various sectors including property development, hotel tourism, commercial operation, lifestyle services, and health.

The company planning to invest in Watson Biotech, Tengyun Health, is the main entity implementing Century Golden Source Group’s health business. From its series of layouts, Huang Tao focuses on elderly care, continuously deepening into professional medical fields through capital connections.

According to official website information, Tengyun Health has three major service platforms: Tengyun Family Medical, Tengyun Specialty, and Tengyun Elderly Care.

Tengyun Family Medical focuses on healthcare services, investing or operating community-based general or specialized medical brands such as Tengyun Family Medical Hospitals, Neighbor Good Doctor, Shengnuo Health, Weikai Health Management, and Songyang Medical. Tengyun Specialty is a platform for specialized medical and rehabilitation services, with well-known domestic ophthalmology hospital Shenzhen Guangliang Medical. Tengyun Elderly Care manages three brands—Anxin Garden, Qingmeng, and Shoushan—operating 15,000 beds.

As early as 2017, Huang Tao, through his controlled Tibet Jingyuan Enterprise Management Co., Ltd., co-established a pharmaceutical and health industry investment fund with Yuwell Medical (002223.SZ) and Yu Rong, the actual controller of Meinian Health (002044.SZ), called Jiangsu Jiequan Zhongwei Tengyun Pharmaceutical and Health Industry Investment Fund (Limited Partnership). Qichacha shows that this fund has invested in six companies, including Suzhou Yuce Biotechnology and Shenzhen Silicon Bionic Technology.

Beyond capital investments in healthcare, Huang Tao’s more notable moves in the capital market include the control battle for WanTong Technology (002331.SZ) and his 2025 investment in children’s clothing company Annor.

In 2018, Huang Tao and his brother Huang Shiying’s Tibet Jingyuan participated in a private placement to acquire control of WanTong Technology. Over the following years, Tibet Jingyuan increased its holdings through secondary market purchases and block trades, gradually raising its stake. In 2020, a control battle erupted, with Tibet Jingyuan and the original controller, Southern Silver Valley, engaging in a temporary shareholder meeting stalemate. Huang Tao ultimately defeated Southern Silver Valley. In February 2022, Tibet Jingyuan officially nominated a majority of directors, making Huang Tao the actual controller of WanTong Technology.

Since Huang Tao’s takeover, WanTong Technology reduced losses in 2023, turned profitable in 2024, but again forecasted losses in 2025.

In June 2025, Huang Tao became the new actual controller of Annor through share transfers and relinquishing voting rights. Although there are no plans for asset injection, market speculation suggests Huang Tao might leverage Century Golden Source’s offline commercial complexes to synergize with the children’s clothing business.

Currently, Annor is also in a loss-making state. According to earnings forecasts, its losses in 2025 may widen year-on-year.

Both of its listed subsidiaries are losing money, and Watson Biotech, which is planning to be acquired, is also underperforming. Data shows that due to intensified competition in the vaccine industry and low public vaccination willingness, Watson Biotech’s revenue and net profit attributable to shareholders have declined year-on-year for the past three quarters in 2023, 2024, and 2025.

Moreover, according to Qichacha, many companies invested by Century Golden Source Group have been listed as persons subject to enforcement, such as Beijing Century Golden Source Shopping Center Management Co., Ltd., which holds 100% of shares, and Beijing Jinyuan Hongda Real Estate Co., Ltd., which holds 99%.

With a vast industrial footprint, control of two listed companies, and now planning to acquire a vaccine company, market speculation about Huang Tao’s underlying intentions is widespread. Whether Watson Biotech, currently suffering from poor performance, can achieve a turnaround after the private placement remains to be seen.