Shares of JOINN Laboratories, often referred to as the "Monkey King" of the CRO sector, experienced a significant decline in both its A-share and H-share listings. The company responded by highlighting its projected net profit growth of approximately threefold under the current "monkey cycle," while also disclosing that its controlling shareholder has cashed out 5.7 billion yuan so far this year.
On March 17, JOINN Laboratories saw its stock price open lower and continue to fall throughout the afternoon session. By market close, the A-share price had dropped by the daily limit to 29.32 yuan per share, resulting in a total market capitalization of 21.97 billion yuan. The H-share price declined by 11.73% to 16.78 Hong Kong dollars per share, with a total market capitalization of 12.57 billion Hong Kong dollars.
This downturn followed an announcement made by the company on the evening of March 16 regarding a complete divestment by a major shareholder. Shareholders Gu Xiaolei and Gu Meifang, acting in concert, plan to sell their entire combined holding of 30.74 million A-shares over the next three months through centralized bidding. This represents 4.1026% of the company's total share capital. The reason cited for the sale was personal financial requirements.
In response to the sharp drop in share price, company representatives indicated that the decline was likely a market reaction to the previous day's divestment news. They emphasized that the company's fundamental business operations remain sound and continue to develop positively.
Gu Xiaolei and Gu Meifang are aunt and nephew, and their shareholdings originated from pre-IPO acquisitions and capital reserve conversions. JOINN Laboratories listed on the Shanghai Stock Exchange in August 2017, meaning these two shareholders have been invested in the company for over eight years. As of the end of the third quarter of 2025, Gu Xiaolei held 20.42 million A-shares (2.7251% stake), and Gu Meifang held 10.32 million A-shares (1.3775% stake), making them the fourth and seventh largest shareholders, respectively.
Both individuals previously served as directors of the company. Gu Xiaolei was a director from December 2015 to April 2023, while Gu Meifang served from December 2015 to January 2019. Since the company's listing in late 2017, their respective shareholding percentages were 8.80% and 6.03%, ranking them as the third and fourth largest shareholders at the time, behind only controlling shareholders Feng Yuxia and Zhou Zhiwen. Over the past eight-plus years, both Gu Xiaolei and Gu Meifang have executed multiple reductions in their stakes.
Notably, just over a month earlier, on January 30, the company announced that Zhou Zhiwen had sold 14.98 million A-shares between January 22 and January 28, reducing his stake by 1.99894% and realizing approximately 568 million yuan. Feng Yuxia and Zhou Zhiwen are also the controlling shareholders of another pharmaceutical company, and Zhou Zhiwen serves as its chairman, while Feng Yuxia is the chairman of JOINN Laboratories.
According to the company's 2025 performance forecast, it expects revenue to be between 1.573 billion yuan and 1.738 billion yuan, a decrease of approximately 13.9% to 22.1% year-on-year. However, net profit attributable to shareholders is projected to be between 233 million yuan and 349 million yuan, representing a significant increase of 214% to 371%.
The company attributed the profit surge despite lower revenue to two main factors. First, the fair value of biological assets increased due to rising market prices coupled with natural growth, contributing positively to earnings. Second, while laboratory operations remained stable, revenue and gross margin from service contracts declined compared to the previous year due to lingering effects of intense industry competition, leading to a reduced profit contribution from laboratory services.
Specifically, the change in fair value of biological assets contributed an estimated net profit between 452 million yuan and 499 million yuan, whereas laboratory services and other businesses resulted in an estimated net loss between 130 million yuan and 206 million yuan.
JOINN Laboratories earned its "Monkey King" nickname during the previous innovative drug cycle. In 2022, it achieved its best performance since listing, with a net profit of 1.074 billion yuan, up 92.71% year-on-year. At that time, driven by rapid drug development cycles and pandemic-related factors, the price of laboratory monkeys surged from around 13,800 yuan each in 2017 to over 150,000 yuan, prompting CRO companies like JOINN Laboratories to actively acquire monkeys.
However, as domestic pharmaceutical industry investment slowed, market demand shifted, and competition in the CRO sector intensified, order prices fell alongside a decline in monkey prices. This led to a downturn in JOINN Laboratories' performance. From 2023 to 2024, the company's net profit fell for two consecutive years, dropping from 397 million yuan to 74.08 million yuan, with year-on-year declines of 63.04% and 81.34%, respectively.
Since 2025, although laboratory services remain highly competitive, laboratory monkey prices have gradually recovered. Reports from December 2025 indicated a supply shortage of crab-eating macaques, the primary species used in experiments, with prices rising to 120,000-130,000 yuan each. Some monkey farms reported that their capacity for the first half of 2026 was already fully booked.
Analysts note that laboratory monkeys are a critical resource for pre-clinical safety evaluations. With a steady recovery in pre-clinical CRO orders, demand is increasing. Meanwhile, short-term supply expansion is challenging, and some farms have reported capacity being booked until the first quarter of 2026. The supply-demand imbalance is expected to persist, potentially driving prices higher in the near term.
In terms of stock performance, from the beginning of 2025 until the close on March 17, JOINN Laboratories' A-shares had accumulated a gain of 76.31%, reaching an interim high of 45.95 yuan per share in mid-January. However, the stock began to retreat in late January. Since the start of the current year, the A-shares have fallen over 16%, while the H-shares have declined more than 18%.
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