China's A-share market has seen yet another high-value divorce settlement, with the founder of Zhejiang Wolwo Bio-Pharmaceutical Co.,Ltd. (300357.SZ) and his wife finalizing the division of 5.4 billion yuan in joint assets. On the evening of September 8, the company issued multiple announcements confirming that founder Hu Gengxi and Chen Yanni had dissolved their marriage, with sole control of the company transferring to Chen Yanni. More surprisingly, the division plan saw assets distributed among three parties rather than just the former couple.
The divorce settlement primarily involved the 47.20% stake in the company jointly controlled by Hu and Chen, totaling 247 million shares worth approximately 5.4 billion yuan. Under the divorce agreement, Chen Yanni retained full ownership of Bright Holdings Limited, while Hu Gengxi kept his directly held 8.35% stake in the listed company. However, his entire 100% equity in Deqing Mingchen Investment Consulting Co., Ltd. was transferred to Niu Chen'an—the grandson of the couple's daughter, Hu Mushuang. Based on the September 8 closing price of 21.94 yuan per share, this indirect stake is valued at over 1.5 billion yuan.
Where to begin
Wolwo Bio-Pharmaceutical's core business is highly specific: anti-allergy treatments and rhinitis relief. The company specializes in allergy disease diagnosis and treatment products, with its flagship product being the sublingual immunotherapy drop "Changdi" (Dermatophagoides farinae drops). This product contributes over 90% of the company's total revenue. The company listed on the ChiNext board on January 21, 2014, with an IPO price of 20.05 yuan per share.
Following the divorce, Hu Gengxi resigned from all positions including director, chairman, legal representative, and other roles, effective immediately. His original term was set to run until December 2028, making this an early departure. Until a new chairman is elected, his ex-wife Chen Yanni will serve as acting chairwoman. As of the September 9 market close, the stock traded at 20.01 yuan per share, giving the company a market capitalization of 10.477 billion yuan.
Key aspects of the leadership transition
What was previously a "husband-and-wife team" jointly controlling 47.2% of shares has now been split into three separate holdings, with no coordinated action arrangements among the parties. Wolwo Bio-Pharmaceutical has chosen to protect control through a combination of charter provisions and executive director duties. Hu Gengxi, now 62, was the technical founder—he conducted scientific research at MIT's Health Sciences Center from 1990 to 1996 before returning to China and founding the company's predecessor in 2002, launching the dust mite drops in 2006. Chen Yanni, born in 1965, holds a master's degree, is a U.S. citizen, and has served as a company director since listing.
The company emphasized that this ownership change resulted from divorce property division and is a non-transactional change, with no other directors or executives affected. Control protection rests on three pillars: Chen Yanni holds 40% of Wolwo Consulting through Hong Kong Haorui, making her the largest shareholder; she serves as executive director and general manager with full board authority; and Hu Gengxi will no longer exert influence through Mingchen Investment. The charter requires two-thirds shareholder approval for any amendment or executive director replacement, but since Chen's 40% voting rights exceed one-third, no such change can pass without her consent.
Legal framework for high-value divorces
Guan Yuantang, director and founding partner of Guangdong Jiacheng Jiahe Law Firm, summarized the equity division logic for high-value A-share divorces into three principles: restricted shares can be transferred but lock-up periods remain unchanged; control preservation typically involves coordinated action agreements, voting rights delegation, and voluntary no-reduction commitments; and post-2024 reduction rules still cap stake sales at 1% through centralized bidding within 90 days and 2% through block trades. Following this change, both Hu and Chen will comply with the Shenzhen Stock Exchange's reduction guidelines, with Hu's 8.35% direct stake locked for six months post-resignation. The company also disclosed that shareholder Wolwo Consulting has pledged 35 million shares, representing 6.68% of total share capital.
Wang Zhibin, partner at Shanghai Minglun Law Firm, noted that private listed companies often originate from "husband-and-wife shop" models, making family disputes easily transmittable to business operations. Divorce-induced equity splits may disrupt existing ownership balance and potentially trigger control struggles. He cautioned that despite companies emphasizing no impact on actual controllers or normal operations, hidden effects such as investor confidence fluctuations and decision-making efficiency changes remain significant concerns.
Single-product reliance and the road ahead
Wolwo Bio-Pharmaceutical dominates the rhinitis treatment segment with its single star product—Changdi sublingual drops. The product generates annual sales of approximately 990 million yuan, accounting for over 90% of total revenue at a 95% gross margin, making it one of the A-share market's most typical "one-drug-sustains-a-company" enterprises. From 2023 to 2025, the company achieved revenues of 848 million, 925 million, and 1.062 billion yuan, with year-on-year growth of -5.34%, 9.1%, and 14.81%, respectively. Net profits attributable to shareholders reached 310 million, 318 million, and 381 million yuan, growing -11.06%, 2.46%, and 19.86%. In the first half of 2026, revenue hit 514 million yuan, up 6.18%, with net profit of 213 million yuan, up 20.59%, at a 95.29% gross margin.
The dust mite drops contributed 821 million, 886 million, and 990 million yuan from 2023 to 2025, representing 96.8%, 95.69%, and 93.18% of total revenue, respectively. The product's gross margins of 95.87%, 95.52%, and 95.41% actually surpassed those of Kweichow Moutai (600519.SH)'s Moutai liquor, which posted 94.12%, 94.06%, and 93.53% over the same period. In H1 2026, dust mite drops revenue reached 470 million yuan, up 3.4%, comprising 91.36% of main revenue. The second growth curve remains in early stages—wormwood pollen allergen sublingual drops generated 35.59 million yuan, up 69.33%, while skin prick test solutions contributed 5.89 million yuan. This expansion comes at a cost: H1 2026 selling expenses reached 194 million yuan (37.65% of revenue), with R&D spending of 53.65 million yuan (10.43% of revenue).
The daughter's path to succession
The couple's daughter Hu Mushuang, born in 1991, joined Wolwo Bio-Pharmaceutical in 2017, serving in business development and subsidiary clinical and regulatory roles before being appointed deputy general manager in February 2025. After General Manager He Jianming resigned in March 2026, she has been acting in that capacity. The company also recently concluded a long-running legal dispute with pre-IPO shareholder Shanghai Lihe Equity Investment Partnership. In June 2026, the court of second instance upheld the original judgment requiring Lihe Investment to pay the remaining 10.96 million yuan from non-compliant share reductions made in 2015.
The stock market picture shows the shares peaked at 97.9 yuan on January 26, 2021—388% above the IPO price—before closing at 21.94 yuan on September 8, 2026, giving a total market value of roughly 11.49 billion yuan, barely above the 2014 offering price. With over 90% of revenue dependent on a single product and control highly concentrated within the founder's family company, the critical question is whether corporate governance structures can withstand the personal upheaval of the founder's divorce. The answer will become clearer once the new chairman, directors, and legal representative are formally elected.
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