Kang Le Guardian (i.e., *ST Kang Le)(BJ920575, stock price 4.71 yuan, market value 1.323 billion yuan) has finally ushered in its long-awaited first commercial product.

Delivery letter of drug approval certificate published by the National Medical Products Administration on July 30Information shows that the trivalent human papillomavirus vaccine from Health Guard (Kunming) Biotechnology Co., Ltd.(Escherichia coli) has been approved, with approval number S20260057, and approval date July 28. This product covers HPV types 16, 18, and 58.

KangLeGuardian had been waiting for this moment for far too long. In March 2023, KangLeGuardian went public on the Beijing Stock Exchange with an issue price of 42 yuan per share, becoming the first HPV stock on the Beijing Stock Exchange. That was also a high point for HPV vaccines —more than 58 million doses were administered in China throughout the year, and HPV vaccines became the vaccine category with the largest increase in value globally.

However, just three years later, as of July 31, 2026, Health Guard's stock price was only about one-tenth of its issue price, and its total market value shrank to 1.3 billion yuan. By the end of 2025, the company was insolvent, with only one million yuan in cash on hand. In June of this year, due to unpaid rent of approximately 4.9 million yuan, its only R&D and operating location in Beijing was ordered to be vacated.

Behind the approval of the first product: The only R&D and business premises in Beijing were ordered to be vacated.

The approval of the trivalent HPV vaccine is good news that KangLeGuardian has been waiting for. According to previously released information, if clinical trials proceed smoothly, KangLeGuardian expects to submit the biologics report for the trivalent HPV vaccine in 2024.The application for a license will be submitted in 2025 for a biological product license for the nine-valent HPV vaccine.

However, by 2026, KangLeGuard finally had its first product on the market, by which time the HPV vaccine market had undergone a dramatic transformation. Furthermore, its Phase III clinical trial of the nine-valent vaccine was hampered by overdue payments for clinical trial funding, preventing the continuation of subsequent gynecological visits, and leading to the suspension of clinical trials at multiple clinical sites.

As of the end of 2025, the company's annual revenue was only RMB 1.4494 million, and its net loss attributable to the parent company reached RMB 579 million. The company's net assets attributable to the parent company's shareholders had turned negative, at approximately RMB -26.6074 million, while its cash and cash equivalents at the end of the period were only RMB 1.1328 million, and its short-term borrowings and non-current liabilities due within one year totaled more than RMB 160 million.

Due to the lack of product approvals, Health Guard is facing significant operational pressure. In the first quarter of this year, the company's operating revenue declined to 106,600 yuan, and its net profit attributable to the parent company was -50.7312 million yuan. At the end of the period, the net assets attributable to the parent company's shareholders widened to -72.4366 million yuan, and cash and cash equivalents were only 2.529 million yuan. In an investor conference, Health Guard acknowledged that "the company's continued operation is indeed facing significant challenges, and we are making every effort to try various methods to resolve our operational difficulties."

Corresponding to its poor performance is Health Guard's steadily declining stock price since its listing. When it went public on the Beijing Stock Exchange, Health Guard's issue price was 42 yuan per share. Subsequently, the company's stock price continued to fall, and as of July this year, it had dropped to around 4 yuan per share, only one-tenth of the issue price.

Previously, Health Guard issued a series of announcements, including but not limited to the resignation of independent directors and senior executives, share pledges, overdue debts, and litigation and arbitration. In an announcement at the end of June, Health Guard also disclosed that due to the company's arrears of approximately 4.9 million yuan in rent, the landlord demanded that it vacate its only R&D and business premises in Beijing.

An investor's account: From "high-risk bets" to "stop-loss exit"

Liu Le (pseudonym), an investor who once heavily invested in Kang Le Wei Shi and then sold off his entire position through the secondary market last year, recounted to a reporter from the Daily Economic News how he came to favor Kang Le Wei Shi and how he ultimately cut his losses and left the market.

"Initially, I was optimistic about the HPV vaccine sector. The market size is indeed huge, and even with intense competition, as long as the product can be developed, it's still a matter of starting from scratch for this company (referring to Health Guard). Compared to Wantai Biopharmaceutical... "Zhifei Biological Products"Compared to other companies at the time, Health Guard's market capitalization was only a few billion yuan, so we judged that there was still a lot of room for growth," Liu Le said. "To give an analogy, even if a large portion of the pie has already been cut by others, as long as Health Guard can still be served, there is still room for growth."

After conducting on-site research at the company, Liu Le said, "The descriptions at the time were quite good. The content of our research was basically consistent with the company's public statements and the content of securities research reports." Based on the above judgment, Liu Le became a shareholder of Kang Le Wei Shi.

But with no progress on the product, Liu Le realized something was wrong. "The first time they said delays were fine, but the second and third times, year after year, they still couldn't launch it. Now it seems like they were just making empty promises. The entire HPV vaccine market has also changed, and capital has costs, which will definitely shake confidence," Liu Le said.

In 2023, the first phase of construction of the Health Guard Kunming production base was completed.Trial production began in the same year. This progress gave Liu LexinThis means the company's business is still moving forward, just waiting for the approval document.

However, significant negative factors began to emerge in rapid succession starting in 2025. That year, Health Guard experienced issues with unpaid wages and social security contributions, and its clinical trial funding payments were overdue, leading to insolvency. Furthermore, due to significant uncertainties regarding its ability to continue as a going concern, the auditing firm issued a qualified opinion on its 2025 annual report.

In the second half of last year, Liu Le made up his mind to sell all his shares of Kang Le Wei Shi on the secondary market.

Celebrity institutions flock to the market, with private placement costs exceeding stock prices.

In August 2021, Health Guard completed its first private placement of shares after listing on the National Equities Exchange and Quotations (NEEQ). The offering issued 24.6 million shares to 17 specific investors at a price of RMB 41.28 per share, raising a total of RMB 1.015 billion.

In this round of financing, considered a crucial pre-IPO stage by the market, several prominent institutions participated. Among them, Yunfeng Capital, established by prominent figures such as Jack Ma and Yu Feng, subscribed through its subsidiary, Hainan Yunfeng Fund Center (Limited Partnership), acquiring 3.6337 million shares for approximately RMB 150 million. Jilin Xinsheng Enterprise Management Co., Ltd., controlled by Jiangxi's leading pharmaceutical company, Jiming Kexin Group, acquired 4.845 million shares for approximately RMB 200 million, becoming the largest investor in this round. Furthermore, Shanghai Chaocui Investment Center (Limited Partnership), one of the shareholders, has multiple layers of equity ownership, revealing that its backers include Taobao China and Giant Interactive.TigermedWell-known companies such as [names of companies].

On April 3, 2024, all 7.2674 million shares held by Yunfeng Capital were released from lock-up and could be traded normally on the secondary market. Looking at the changes in the shareholder list, Yunfeng Capital, which was among the top ten shareholders in the first quarter report of 2024, no longer appears in the top ten shareholders list of the second half of 2024.

Based on this, it can be determined that Yunfeng Fund's reduction or liquidation of its holdings occurred in the second quarter of 2024. During this reduction window, the secondary market share price of Kang Le Wei Shi fluctuated between 8 and 16 yuan, which was significantly lower than the fixed increase cost price of 41.28 yuan per share.

On July 23, a reporter from the Daily Economic News sent an interview request to Health Guard, but had not received a response by the time of publication.
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