MeritValue

Zhengye Biotechnology Holding Ltd

ZYBTdata completeness 100%2 fiscal years on file
The thesis, from the filings

Zhengye Biotechnology Holding Ltd earns about -7% on invested capital, but has diluted owners by 4% over 2 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2024FY 2025
Revenue$25.5M1$16.6M2
Net income$1.55M3−$9.98M4
Operating cash flow$5.62M5$1.91M6
Capital expenditure$1.86M7$144,0008
Free cash flow (derived)$3.76M5$1.77M6
Total debt$13.5M9$10.8M10
Cash & equivalents$2.55M11$7.2M12
Diluted shares45.7M47.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$7.54
your share of equity
Profit it earned you last year
−$2.11
Free cash flow it threw off
$0.37
Debt you’d be carrying
$2.28

10 shares is a claim on $7.54 of net worth that earned you −$2.11 and generated $0.37 of cash last year, against $2.28 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-7% avg · 2y
FY24 5%FY25 -20%

It earned an average -7% on invested capital over 2 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+4% shares · 2y

Share count is up 4% over 2 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 20% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 2 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
only 2 years of net income (need ≥3)
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2024-12-31 · accession 0001213900-25-061202 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 20-F · period ending 2025-12-31 · accession 0001213900-26-048584 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 20-F · period ending 2024-12-31 · accession 0001213900-25-061202 (NetIncomeLoss)
  4. 20-F · period ending 2025-12-31 · accession 0001213900-26-048584 (NetIncomeLoss)
  5. 20-F · period ending 2024-12-31 · accession 0001213900-25-061202 (NetCashProvidedByUsedInOperatingActivities)
  6. 20-F · period ending 2025-12-31 · accession 0001213900-26-048584 (NetCashProvidedByUsedInOperatingActivities)
  7. 20-F · period ending 2024-12-31 · accession 0001213900-25-061202 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 20-F · period ending 2025-12-31 · accession 0001213900-26-048584 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 20-F · period ending 2024-12-31 · accession 0001213900-25-061202 (LongTermDebtNoncurrent)
  10. 20-F · period ending 2025-12-31 · accession 0001213900-26-048584 (LongTermDebtCurrent)
  11. 20-F · period ending 2024-12-31 · accession 0001213900-25-061202 (CashAndCashEquivalentsAtCarryingValue)
  12. 20-F · period ending 2025-12-31 · accession 0001213900-26-048584 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)