--- title: "NKY's \"Double-Sided\" Predicament: Ten Years of Cross-Industry Ventures Still Not Profitable, Core Shareholders Concentrated on Reducing Holdings for Cashing Out" type: "News" locale: "en" url: "https://longbridge.com/en/news/267759520.md" description: "NKY is facing a dilemma. Despite a decade of cross-border precision medicine, it has yet to turn a profit, and core shareholders and executives have been reducing their holdings. Since the third quarter, shareholders have reduced their holdings by over 12 million shares, and recently executives plan to reduce their holdings by 218,000 shares. The company's performance has significantly declined due to the cyclical nature of the PVP industry, yet it still plans to increase its investment in Huadao Biotechnology by 50 million yuan, attracting market attention" datetime: "2025-11-28T02:13:33.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/267759520.md) - [en](https://longbridge.com/en/news/267759520.md) - [zh-HK](https://longbridge.com/zh-HK/news/267759520.md) --- # NKY's "Double-Sided" Predicament: Ten Years of Cross-Industry Ventures Still Not Profitable, Core Shareholders Concentrated on Reducing Holdings for Cashing Out **Author: Fang Sheng** **Editor: Zhang Jiaming** Following the collective reduction of holdings by several important shareholders in the third quarter, the list of reductions for XinKaiYuan (300109.SZ) has now added the names of executives. On the evening of November 25, XinKaiYuan announced that company director Jiang Tao and secretary of the board Xing Xiaoliang plan to reduce their holdings by a total of no more than 218,000 shares through centralized bidding. Although the scale of this executive reduction is relatively small, it evidently continues the "exit" sentiment of the company since the third quarter—data shows that this year in the third quarter, several core shareholders, including the original second shareholder, former chairman, and former concerted actors, have collectively reduced their holdings by more than 12 million shares. The reduction actions of shareholders and executives have always been sensitive to small and medium investors, especially during times of weak company performance. Since the beginning of this year, affected by factors such as the cyclical adjustment of the PVP industry, XinKaiYuan's revenue and net profit have both significantly declined year-on-year. At the same time, the company continues to increase investment in the unprofitable precision medical track, announcing in September an additional investment of 50 million yuan in Huadao Biotechnology. The high-profile capital increase strategy coinciding with shareholder reductions has attracted market attention. **A Decade in Cross-Border Medicine: Endless Cash Burn and Strategic Inertia** Looking back at XinKaiYuan's "medical dream," it began ten years ago with a desire for a second growth curve. However, reviewing these ten years reveals a controversial path of cash burning. In 2014, as a leading enterprise in the domestic PVP industry, XinKaiYuan successfully listed on the Growth Enterprise Market. At that time, PVP, as a fine chemical product, had a limited global market size, and seeking a second growth curve became the most urgent strategic demand of the management. Thus, XinKaiYuan turned its attention to the burgeoning precision medical track. Public information shows that from the end of 2014 to 2015, XinKaiYuan acquired three companies in the precision medical field for a total price of 543 million yuan through the issuance of shares and cash payments: Heer Medical, which focuses on early cancer diagnosis; Sanji Biotechnology, which specializes in molecular diagnostics; and Jingneng Biotechnology, which focuses on gene sequencing. According to the evaluation reports at that time, the appreciation rates of these three companies reached an astonishing 1407%, 704%, and 1267%, respectively. Such high-premium acquisitions undoubtedly carry high risks. However, after resuming trading, XinKaiYuan's stock price hit the daily limit continuously, with an increase of over 800% within six months, bringing significant paper wealth effects to the company. The enthusiasm of the capital market fueled XinKaiYuan's ambition to expand in the medical field. If the initial "three acquisitions" were a point-based layout, the subsequent actions were a rapid and extensive expansion. Data shows that between 2017 and 2018, XinKaiYuan initiated a land-grabbing model, establishing nearly 50 precision medical studios and related pharmaceutical technology companies in bulk through subsidiaries in Beijing, Wuhan, Hangzhou, and other locations Since 2021, NKY has successively invested in several biopharmaceutical companies, including YuRui Medical, Guangzhou Weirongte, Liangyuan Bio, Hangzhou Niuanjin, and Huadao Bio, with intended investment amounts of 7 million yuan, 100 million yuan, 50 million yuan, 50 million yuan, and 20 million yuan, respectively. However, the rapid expansion has not brought corresponding performance returns. The early acquired "old three companies" quickly "changed their faces" and fell into continuous losses after the performance commitment period, and most of the studios established in bulk have also fallen silent. Despite this, NKY continues to increase its investment in the medical sector. In September, NKY and its subsidiaries announced an additional investment of 50 million yuan to increase their stake in Huadao Bio. This marks the company's third significant investment in Huadao Bio since 2019, with a total investment amount reaching 120 million yuan. **PVP Main Business Holds Steady, Medical Sector Becomes "Profit Black Hole"** It is noteworthy that NKY's strategic "inertia" sharply contrasts with performance feedback. If NKY is likened to a dual-wheel-driven war vehicle, the financial report data from the past few years tells the awkward reality of "main business supporting side business." In 2022, affected by the European energy crisis, global PVP giants such as BASF and other European manufacturers were forced to cut production, leading to a significant global supply gap for PVP. At the same time, the explosion of the domestic new energy vehicle market has driven a surge in demand for PVP as a lithium battery auxiliary material. The shift in supply and demand, coupled with rising raw material prices, has caused PVP product prices to soar across the board. Public data shows that the average price of industrial-grade PVP rose from about 50,000 yuan/ton in 2021 to over 80,000 yuan/ton in 2022. Against this backdrop, NKY's performance also reached a historic high. In 2022 and 2023, the company achieved net profits of 291 million yuan and 493 million yuan, respectively, with impressive year-on-year growth, and the PVP business has become a "cash cow" and performance pillar. However, as the supply and demand relationship rebalances, the PVP dividend gradually recedes. According to NKY's released semi-annual report for 2025, the company's overall performance was under pressure in the first half of the year, achieving operating revenue of 644 million yuan, a year-on-year decrease of 12.36%; net profit was 139 million yuan, a year-on-year decline of 34.74%. By the third quarter, the decline in performance further intensified. The third-quarter report showed that NKY's revenue in the first three quarters was 951 million yuan, a year-on-year decrease of 14.36%; the net profit attributable to the parent company after deducting non-recurring gains and losses was 182 million yuan, a year-on-year decline of over 40%. On the other hand, the medical layout that has persisted for ten years has yielded rather dismal results. The initially high-priced acquisitions of the "old three companies" have continued to incur losses since 2022. By the first half of this year, NKY's medical service businesses, including early cancer diagnosis, molecular diagnosis, and genetic testing, achieved a total operating revenue of only 67 million yuan, accounting for an insignificant proportion of total revenue, and the overall revenue and gross margin levels also declined year-on-year At the same time, the early high-premium acquisition of the "old three families" has resulted in goodwill of up to 442 million yuan on Xin Kaiyuan's balance sheet. As of the end of the first half of 2025, this goodwill still amounts to 297 million yuan. Under accounting standards, goodwill needs to be tested for impairment annually, and if the performance of the acquired assets does not meet expectations, goodwill must be impaired, which will directly consume the current profits of the listed company. **Intensive Share Reductions by Major Shareholders May Lead to Performance Growth Dilemma** On one hand, PVP's main business is struggling to hold up the crisis, while on the other hand, cross-border businesses continue to drag down performance, creating a stark contrast that has sparked internal disputes over direction within Xin Kaiyuan. A landmark event occurred in 2021 when Xin Kaiyuan, facing significant financial pressure, successfully sold BioVision under the leadership of then-chairman and technical core Wang Jianqiang, bringing in over 2 billion yuan in cash to alleviate the urgent situation. However, just a month later, Wang Jianqiang was dismissed. Behind this turmoil was a significant disagreement over Xin Kaiyuan's development direction or the use of funds. At the board meeting in December that decided his position, Wang Jianqiang cast the only dissenting vote and questioned the nominee's "outsider leading insiders" in the chemical main business, making the internal divisions public. Data shows that after the sale of BV in 2021, Xin Kaiyuan's liquidity pressure was greatly alleviated, with cash and cash equivalents soaring from 166 million yuan at the end of 2020 to 1.105 billion yuan. Following Wang Jianqiang's departure, this cash was primarily used for a new round of medical investments. It is noteworthy that during Wang Jianqiang's tenure as chairman, the only time he voted against an investment related to precision medicine was for the investment in Yurai Medical. According to Qichacha information, Yurai Medical was deregistered in February of this year. If the operational losses in the precision medicine sector are the "visible pain points," then the intensive share reductions by major shareholders in the third quarter constitute an "implicit vote" on the company's long-term value judgment. The third-quarter report shows that several important investors and related parties, who have long been among Xin Kaiyuan's top ten shareholders, have significantly reduced their holdings. Data indicates that the former second-largest shareholder, Wuhu Changqian, significantly reduced its holdings by approximately 4.86 million shares in the third quarter, with its shareholding ratio dropping from 3.88% to 2.87%, and its ranking in the shareholder list falling directly to fifth place. Even more aggressive was Ren Dalong, a previously bound concerted actor. In the semi-annual report, he was still the sixth-largest shareholder with 9.18 million shares, but he was no longer found in the top ten shareholders in the third-quarter report. Based on the shareholding threshold of the tenth-largest shareholder, Ren Dalong reduced his holdings by at least 3.72 million shares in the third quarter, and possibly more. Meanwhile, long-standing individual shareholder Zhao Tian also reduced his holdings by approximately 2.99 million shares in the third quarter. The company's former co-founder and former chairman, Wang Jianqiang, also reduced his holdings by about 1.3 million shares in that quarter, bringing his shareholding ratio down to 3.02%. According to statistics, in just the third quarter, the total number of shares reduced by these core shareholders and related parties exceeded 12 million shares For a listed company, major shareholders often have a better understanding of the company's operating conditions and future potential than ordinary investors, and they are also the focus of market attention. The "group-style" withdrawal reflects, to some extent, the uncertainty of core shareholders regarding the company's future development expectations. With its deep technical accumulation and market position in the PVP industry, NKY has reaped significant benefits from past industry opportunities, especially in high-end products such as pharmaceutical-grade and new energy, boasting a gross profit margin of up to 70% for the "Oruisi" series and a global market share of 20%. Unfortunately, a decade of medical investment has yet to yield returns, which may also be the fundamental reason for NKY's long-term sluggish stock price. As of after the market on November 26, among the 944 companies on the ChiNext with a positive price-to-earnings ratio, NKY ranked 232nd from the bottom with a price-to-earnings ratio of 35.71, placing it in the lower valuation range of the sector. We will continue to pay attention to when NKY's persistent medical investments will yield results ### Related Stocks - [300109.CN](https://longbridge.com/en/quote/300109.CN.md) ## Related News & Research - [Ships already sailing through Hormuz under UN evacuation scheme, agency says](https://longbridge.com/en/news/290685383.md) - [Quebecor ranks 19th in Corporate Knights’ 2026 Canada Best Corporate Citizens list](https://longbridge.com/en/news/290599019.md) - [Cargo ship reports suspected attack while crossing Hormuz](https://longbridge.com/en/news/290859086.md) - [Klaveness Combination Carriers says MV Banastar exits Strait of Hormuz after being trapped in Gulf](https://longbridge.com/en/news/290927446.md) - [DOF wins 3-year subsea services contract for Skandi Involver starting Q3 2026](https://longbridge.com/en/news/290922201.md)