Zhejiang Medicine plans new bio-project amid Q3 profit dip

Zhejiang Medicine Co., Ltd. is investing approximately 1.685 billion yuan in the Zhejiang Medicine Changbei Bio-Project, a new facility aimed at increasing self-sufficiency in vitamin intermediates and reducing reliance on external key intermediates. The project, to be undertaken by its subsidiary Zhejiang Changbei Biotechnology Co., Ltd., will be constructed in two phases from December 2025 to December 2027 within the Hangzhou Bay Shangyu Economic and Technological Development Zone.

This strategic expansion comes as the company's third-quarter financial report for 2025 reveals a decline in performance. Total operating income for the first three quarters decreased by 5.87% to 6.695 billion yuan, while net profit attributable to shareholders saw a 51.37% reduction in the third quarter alone, impacting basic earnings per share, mainly due to decreased sales volume and prices of nutritional products.

Concurrently, the board of directors approved a restricted stock incentive plan for 2025, involving the granting of 1,028.40 million restricted shares to 876 employees, including executives and core staff, representing 1.0694% of the company's total share capital. This incentive plan aims to enhance long-term motivation and retain key talent, with a shareholder meeting scheduled for October 28, 2025.