Zhengye Biotechnology faces NASDAQ compliance issue

Published 23/05/2025, 21:14
Zhengye Biotechnology faces NASDAQ compliance issue

JILIN, China - Zhengye Biotechnology Holding Limited (NASDAQ:ZYBT), a company specializing in the production of veterinary vaccines with a market capitalization of $461 million and currently trading at $8.53, has been notified of non-compliance with NASDAQ’s continued listing requirements. The notification, known as the Delinquency Letter, was issued because Zhengye failed to file its annual report for the fiscal year ending December 31, 2024, on time.

The NASDAQ Listing Rule 5250(c)(1) requires timely submission of periodic financial reports as a condition for continued listing. Zhengye Biotechnology must now submit a plan to regain compliance within 60 days from the date of the Delinquency Letter, which was sent on May 20, 2025. If the plan is accepted, NASDAQ may allow the company up to 180 calendar days, or until November 11, 2025, to file the overdue annual report and meet the listing standards.

Despite this setback, the trading of Zhengye’s ordinary shares on the Nasdaq Capital Market remains unaffected currently. The stock has shown remarkable momentum, delivering a 100% return over the past six months. According to InvestingPro analysis, the company maintains a FAIR financial health score of 2.39, though current metrics suggest the stock may be trading above its Fair Value. The announcement of the compliance issue is part of the company’s adherence to NASDAQ Listing Rule 5810(b), which mandates prompt public disclosure of any deficiency notifications.

Zhengye Biotechnology, through its operating entity Jilin Zhengye Biological Products Co., Ltd., has been engaged in the research, development, manufacturing, and sales of veterinary vaccines for over two decades. With a gross profit margin of 55.5% and moderate debt levels, the company demonstrates solid operational efficiency. Want deeper insights? InvestingPro offers 12 additional investment tips and comprehensive financial metrics for ZYBT. With a product line of 44 vaccines for various animals, including livestock and pets, the company has a significant presence in the Chinese market and exports to countries such as Vietnam, Pakistan, and Egypt.

The company, which operates three GMP-compliant veterinary vaccine production facilities, is committed to improving animal health and has a workforce with substantial industry experience.

This news article is based on a press release statement from Zhengye Biotechnology Holding Limited.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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