On the evening of May 12th, Hangzhou Tigermed Consulting Co.,Ltd. (TIGERMED) (300347.SZ; 3347.HK), a leading domestic clinical contract research organization (CRO), announced that its Chairman, Dr. Xiaoping Ye, and its General Manager, Xiaochun Cao, had received formal investigation notices from the China Securities Regulatory Commission (CSRC). The investigation concerns suspected violations related to information disclosure obligations for shareholding changes. Following this news, the company's A-share and H-share prices fell sharply at the next day's opening. The A-shares closed at 49.09 yuan per share, down 4.74%, while the H-shares closed at 36.12 Hong Kong dollars per share, a drop of 5%.

Notably, institutional investors became significant shareholders in the first quarter. According to TIGERMED's Q1 2026 report, two mixed funds managed by Fullgoal Fund Management Co., Ltd. – Fullgoal Business Model Select Hybrid Fund and Fullgoal He Run Hybrid Fund – newly entered the list of the company's top ten circulating shareholders. Together, they hold nearly 20.97 million shares. In contrast, China Europe Healthcare Industry Hybrid Fund reduced its holdings by 14.2% during the same period.

This situation presents a divergence: while the company's controlling shareholders face a potential regulatory issue, two prominent Fullgoal Fund managers, each overseeing funds exceeding 10 billion yuan, have taken substantial positions. The question arises whether this represents a calculated bet on a different opportunity or a potential misjudgment of risk.

**Controlling Shareholders Under Investigation; Fund Managers Take Contrary Positions**

TIGERMED's announcement stated that Dr. Xiaoping Ye and Xiaochun Cao, the company's actual controllers, received the CSRC's investigation notice on May 12, 2026. The next day, the company swiftly proposed a share buyback plan. The plan involves using the company's own or raised funds to repurchase A-shares via centralized bidding, with a total amount between 500 million and 1 billion yuan, at a price not exceeding 60 yuan per share. The repurchased shares are intended for employee incentive plans or capital reduction.

Founded by Dr. Xiaoping Ye in 2004, TIGERMED provides full-process clinical trial services for new drug development. Ms. Cao joined in January 2005. Together, they are the company's actual controllers and acting-in-concert parties. Their combined shareholding has decreased from 37.56% at the time of the company's 2012 A-share listing to 26.54% by the end of 2025.

Financially, TIGERMED reported 2025 revenue of 6.833 billion yuan, a year-on-year increase of 3.48%, but its net profit after deducting non-recurring gains and losses fell 58.5% to 355 million yuan. For Q1 2026, revenue was 1.801 billion yuan, up 15.17% year-on-year, while net profit attributable to shareholders plummeted 70.36% to 49.043 million yuan.

It was precisely at the end of this quarter that the two Fullgoal funds established their new positions, holding 8.9965 million and 11.9879 million shares respectively. This stands in stark contrast to the selling by China Europe Healthcare Industry Hybrid Fund, which reduced its TIGERMED holdings by 14.2% in Q1 2026.

Analysis suggests this institutional divergence reflects not only differing assessments of short-term stock-specific risk but also a broader debate on the long-term value of the CRO sector. As a core domestic clinical CRO with over a 10% market share and global service capabilities, TIGERMED's prospects are tied to industry cycles. The domestic innovative drug financing market has shown signs of recovery since 2025, with Q1 2026 financing up 15% year-on-year, potentially benefiting upstream CRO firms.

Fullgoal Fund's contrarian move appears to target a potential sector rebound. TIGERMED's stock price experienced a prolonged period of consolidation from the second half of 2024, reaching a near three-year low by the end of Q1 2026. Its dynamic price-to-earnings ratio fell below 30, a decline of over 60% from peak industry valuations. The purchase of approximately 20 million shares by the two funds is seen as a deep-value bet based on fundamental analysis.

Meanwhile, China Europe Healthcare Industry Hybrid Fund, as a healthcare-themed fund, reduced holdings in three CRO companies in Q1, including TIGERMED, WuXi AppTec (reducing 4.083 million shares, down 13.59%), and Pharmaron (reducing 4.0611 million shares, down 5.61%). Concurrently, the fund increased positions in four innovative drug companies, including Haisco Pharmaceutical Group, Baili Tianheng, Kelun Pharmaceutical, and Allist Pharmaceuticals (a new position of 8.314 million shares). This indicates a tactical rotation within the healthcare sector by the fund manager.

**The Track Records of Two Prominent Fund Managers**

The managers behind the Fullgoal funds' TIGERMED investment, Zhixiang Xie and Qian Qiao, are both seasoned managers overseeing assets exceeding 10 billion yuan. Their performance in Q1 2026 was notable.

Public records show Xie previously made a significant investment in WuXi AppTec in Q4 2022, holding for about a year before profitably reducing the position. Qiao had successfully positioned in a Hong Kong-listed innovative drug ETF in Q1 2024, also exiting profitably during a subsequent rebound. Their simultaneous new entry as top-ten circulating shareholders in the same company is a relatively concentrated move compared to their typical strategies.

It is important to note that quarterly report holdings are snapshots as of March 31st. The investigation announcement occurred on May 12th, so it is unknown whether the fund managers have adjusted their positions since.

If the two Fullgoal funds established their TIGERMED positions in mid-to-late March when the price was below 54 yuan, they would have been sitting on paper gains by quarter-end. If the buying occurred in January or early February near the peak of 67 yuan, they would have been at a paper loss.

In Q1 2026, the Fullgoal He Run Hybrid Fund managed by Xie achieved a profit of 199 million yuan with a NAV total return of 32.48%. The Fullgoal Business Model Select Hybrid Fund managed by Qiao performed even more strongly, posting a 494 million yuan profit and a NAV total return of 37.31%.

Xie, holding a Master's in Financial Engineering from Fudan University, joined Fullgoal in 2007. He currently manages three active equity products with a total AUM of 34.519 billion yuan as of Q1 2026, though this is down over 60% from the peak of 96.345 billion yuan in Q4 2021. His flagship fund, Fullgoal He Run A, has delivered a total return of 931.44% and an annualized return of 19.19% over his 13.3-year tenure, significantly outperforming the CSI 300's 4.8% annualized return.

Xie's portfolio at quarter-end was heavily weighted towards manufacturing (55% of NAV), technology (7.05%), and construction (1.88%). Top holdings included Juhua Group, Amlogic, InnoLight Technology, Contemporary Amperex Technology Co. Limited (CATL), Hwatsing Technology, Deye Technology, Innovent Biologics, Montage Technology, Shandong Hualu-Hengsheng Chemical Co., Ltd., and KE Holdings Inc.

Qiao, holding an MBA, joined Fullgoal as a fund manager in 2017. She currently manages two funds with a combined AUM of 23.474 billion yuan. Since joining, her managed products have delivered a total return of 209.14% with an annualized return of 13.62%. Similar to Xie, her portfolio is dominated by manufacturing (60.76% of NAV), followed by leasing & business services (5.43%) and technology (4.09%).

In Q1, both managers reduced positions in CATL and Amlogic. Xie also trimmed his stake in optical module leader InnoLight Technology. Both increased their holdings in fluorochemical leader Juhua Group and semiconductor equipment maker Hwatsing Technology. For 2026, Xie has expressed optimism regarding AI and a recovery in traditional industries. Qiao maintains a more balanced view, seeing growth opportunities in AI computing, innovative drugs, and energy.

For TIGERMED, the outcome of the investigation into its controllers remains pending. Whether Fullgoal Fund's contrarian investment will ultimately yield positive returns will be revealed in time.