Change of ownership boosts DuRui Pharmaceutical's stock price surge; performance hype hard to conceal, new entrants without pharmaceutical background face breakthrough challenges

Securities Star Liu Fengru

On February 26, DuRui Pharmaceutical (301075.SZ) officially announced the completion of its tender offer results. New actual controllers Wang Qingtai, Cao Xiaobing, and others acquired a total of 53.9% of the company’s shares through a combination of “agreement transfer + partial tender offer.” This change in ownership has become a strong driver of the stock price increase, with DuRui Pharmaceutical’s stock price rising over 80% in nearly 90 trading days.

Securities Star notes that behind this impressive stock performance are the company’s continuous multi-year performance declines, core product cooling, and further expanded projected losses in 2025. The question remains whether the new non-pharmaceutical industry background actual controllers can lead the company out of its performance difficulties, which has become a market focus.

Agreement Transfer + Tender Offer in Two Steps, New Main Controller Holds Over 50% Equity

The change in actual control of DuRui Pharmaceutical was carried out through “agreement transfer as a prerequisite, supplemented by partial tender offer,” with the overall process starting on October 13, 2025.

At that time, the original controlling shareholder, Tibet Jiakang Times Technology Development Co., Ltd. (hereinafter “Tibet Jiakang”), and its concerted action partner, Zhoushan Qingchang Enterprise Management Partnership (Limited Partnership) (hereinafter “Zhoushan Qingchang”), signed a “Share Transfer Agreement” with the transferees Wang Qingtai, Cui Zihao, and Cao Xiaobing. Tibet Jiakang and Zhoushan Qingchang transferred a total of 23.68 million unrestricted circulating shares (29.6% of the company’s total shares) to Wang Qingtai and his concerted action partners Cui Zihao and Cao Xiaobing via agreement transfer, at a price of 32.064 yuan per share, totaling 759 million yuan. Meanwhile, Wang Qingtai and Cao Xiaobing planned to further increase their holdings through a partial tender offer.

On December 5, 2025, after the completion of the share transfer, Wang Qingtai, Cui Zihao, and Cao Xiaobing held a total of 29.6% of DuRui Pharmaceutical’s shares and voting rights. Tibet Jiakang and Zhoushan Qingchang together held 11.98% of voting rights. The company’s controlling shareholder and actual controller officially changed to Wang Qingtai, Cui Zihao, and Cao Xiaobing.

Subsequently, a tender offer plan was launched, with Wang Qingtai and Cao Xiaobing implementing the offer. The tender offer price was 32.07 yuan per share, with the period running from January 22, 2026, to February 24, 2026.

On February 26, DuRui Pharmaceutical announced that the tender offer period had expired, and the results confirmed:

During the tender offer period, Wang Qingtai’s pre-acceptance shareholder accounts totaled 3, with a total of 17.60 million shares tendered; Cao Xiaobing’s pre-acceptance shareholder accounts totaled 4, with a total of 1.85 million shares tendered. After the completion of the tender offer, Wang Qingtai, Cao Xiaobing, and their concerted action parties held a total of 43.12 million shares, increasing their stake to 53.9%, further consolidating control.

Analysis indicates that this acquisition used a strategy of “initially agreeing to transfer nearly 30% of shares to avoid full mandatory tender obligations, then consolidating control through partial tender offers,” combined with pre-commitments from original shareholders, effectively ensuring the success of the tender offer. The acquirers stated that this tender offer was based on confidence in DuRui Pharmaceutical’s future development, leveraging operational management experience and industry resources to support the company’s growth.

Stock Price Soars, Performance Decline Difficult to Reverse

From the disclosure of the ownership change plan to the confirmation of the tender offer results, DuRui Pharmaceutical’s stock price continued to rise. After resumption on February 27, the stock hit a new high, with nearly 80% increase over the past 90 trading days. The ownership change news served as a major catalyst for the stock price. However, in stark contrast to the impressive stock performance, the company’s performance has shown a multi-year downward trend, with losses continuing to widen.

DuRui Pharmaceutical was listed in 2021, mainly engaged in the R&D, production, and sales of chemical drug formulations, intermediates, and raw materials. In its first year, it reached a revenue peak of 530 million yuan, but revenue has shrunk year after year, falling to 241 million yuan in 2024—less than half of the peak. Net profit also declined: in 2021, net profit attributable to shareholders was 68.51 million yuan, down 25.53% year-on-year; from 2022 to 2024, it continued to decline, reaching 20.50 million yuan and 18.85 million yuan respectively, with 2024 turning into a loss of 62.67 million yuan.

As the company’s core product, sodium acetate Ringer’s injection has maintained a market share of over 80% for a long time and is the main revenue pillar. However, affected by policies such as medical insurance cost control, volume-based procurement, and normalization, sales volume and income have sharply declined in recent years. From 2021 to 2023, sales revenue of sodium acetate Ringer’s injection was 465 million yuan, 297 million yuan, and 231 million yuan respectively. In 2024, the specific sales figures were not disclosed.

Securities Star notes that the sodium acetate Ringer’s injection was awarded the tenth batch of national centralized drug procurement at the end of 2024, and since April 2025, the bid-winning price has been implemented, becoming a key reason for the company’s projected loss in 2025. DuRui Pharmaceutical expects a net loss attributable to shareholders of 76.24 million to 99.12 million yuan in 2025, a decrease of 21.67% to 58.17% year-on-year. The company explained that the sharp decline in sales volume and price of the product led to a significant reduction in main business revenue and gross profit margin in 2025.

Additionally, DuRui Pharmaceutical acquired Xin Chengda in September 2023 and Sichuan DuRui in November 2024, initially forming an integrated raw material and formulation development pattern. Although Sichuan DuRui’s revenue increased, it still did not cover R&D and financial expenses, remaining in a loss state, further dragging down the company’s 2025 performance.

It is worth noting that the new actual controllers do not have a background in the pharmaceutical industry. Wang Qingtai founded Hebei Tianwang Bicycle Technology Co., Ltd. in 2014, then established Qinqi Intelligent Technology (Zhejiang) Co., Ltd., Hebei Tianqing Intelligent Technology, and Hebei Tongxi Bicycle. Cao Xiaobing has deep roots in the construction industry. Whether the new controllers can leverage their resources to reverse the company’s declining performance and promote business transformation remains to be further verified by the market. (This article first published by Securities Star, author | Liu Fengru)