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

(Source: Caixin)

As the head of Century Golden Source Group, Huang Tao focuses on the real estate sector. He acquired control of Annor less than a year ago and was previously one of the main players in the internal conflict at Wantong Technology.

After only two days of suspension, Watson Biotech (300142.SZ) quickly announced a private placement “change of ownership” plan. Huang Tao, the leader of Century Golden Source Group, who just 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 not exceed 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.

Shareholder structure of Tengyun Xinwo, 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 on major decisions related to Watson Biotech’s production, operations, corporate governance, and other significant matters.

All parties pledge that if, after full communication and consultation, they cannot reach a consensus on how to exercise voting rights on relevant matters, the opinions of Huang Tao, Tengyun Biotech, and Tengyun Healthcare shall 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 this change, 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. The company 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 operations, lifestyle services, and health.

The current health business of Century Golden Source, which Tengyun Healthcare plans to acquire, is the main implementation platform for the group’s health sector. From its strategic layout, Huang Tao focuses on elder care, continuously deepening into specialized medical fields through capital.

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

Tengyun Family Medical focuses on healthcare services, investing in or operating community clinics and specialized medical brands such as Tengyun Family Medical Hospital, 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—the Jiangsu Jiequan Zhongwei Tengyun Medical & Health Industry Investment Fund (Limited Partnership)—together with Yuwell Medical (002223.SZ) and Yu Rong, the controlling person of Meinian Health (002044.SZ). Qichacha shows that this fund has invested in six companies, including Suzhou Yuce Biotechnology and Shenzhen Silicon Bionic Technology.

Beyond investments in healthcare, Huang Tao’s notable market moves include the control dispute over Wantong Technology (002331.SZ) and his 2025 stake in Annor, a children’s clothing company.

In 2018, Huang Tao and his brother Huang Shiying, through 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 controlling party, 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 has reduced losses in 2023 and turned profitable in 2024, but in 2025, it again reported a loss forecast.

In June 2025, Huang Tao became the new actual controller of Annor through share transfers and relinquishing voting rights. Although there are no current plans for asset injection, market speculation suggests Huang Tao may 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 its earnings forecast, its losses in 2025 are expected to widen year-on-year.

Both of its listed subsidiaries are losing money, and Watson Biotech, which is about 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 (2023–2025).

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

With a vast industrial footprint and control of two listed companies, Huang Tao’s plan to acquire a vaccine company has sparked market speculation. Whether Watson Biotech can rebound after raising funds remains to be seen.