Walvax Biotechnology faces regulatory action, key deal rejected by shareholders

Walvax Biotechnology received an administrative supervisory decision from the Yunnan Securities Regulatory Bureau on December 18, 2025, for failing to submit director and senior management compensation for 2023 and 2024 to shareholder and board approval, respectively. This violates Article 60 of the "Guidelines for Corporate Governance of Listed Companies," mandating corrective action within 30 days. The company stated it would rectify these issues and enhance internal controls.

The regulatory action coincides with shareholder dissent at the company’s first extraordinary general meeting on December 19, 2025. While proposals regarding profit distribution, auditor appointment, and revisions to company articles and governance rules were approved, a crucial motion to transfer minority stakes in its subsidiary, Yuxi Walvax Biotechnology Co., Ltd., failed. The transfer, deemed a related-party transaction, did not receive the required approval from over half of non-related shareholders, with 87,152,763 votes against versus 31,540,115 in favor.

The company affirmed its commitment to proceeding with the original equity transfer agreement, urging other minority shareholders to cooperate with the industrial and commercial changes. Walvax Biotechnology emphasized that it respects shareholder opinions, particularly those of small and medium-sized investors, and will disclose further developments.