On the evening of July 6th, Shenzhen New Industries Biomedical Engineering Co.,Ltd. (SZSE: 300832) faced a sudden negative development as its controlling shareholder, Weng Xianding, was placed under detention. The company emphasized that Weng Xianding has not held any position at the company for a long time and that the matter does not involve the company. To counter market panic, the company swiftly announced a share repurchase plan totaling between 100 million and 200 million yuan the very next morning, leading the secondary market to gradually recover after a brief decline.
While the repurchase acted as a short-term "first aid kit" for the market, mitigating the stock price impact from the controlling shareholder event, it cannot mask underlying issues with the company's fundamentals and structure. In 2025, the company experienced its first instance of "revenue growth without profit growth" since its IPO. Rising costs compressed gross margins for its two main product lines, and a divergent performance emerged between its domestic and international markets—domestic revenue contracted due to factors like volume-based procurement, adjustments to reagent VAT rates, and unbundling of test packages, while overseas growth, supported by strong reagent sales volume, became a key pillar.
Entering the first quarter of 2026, the company's revenue and net profit saw marginal improvement, but overall growth momentum has slowed. Although domestic reagents show signs of recovery and overseas reagent growth remains resilient, the imbalance between domestic and international operations persists.
Controlling Shareholder Detained, Emergency Repurchase to "Stabilize the Market"
On the morning of July 7th, the company disclosed a share repurchase plan. It intends to use its own funds to repurchase a portion of its shares through centralized bidding, with a total amount between 100 million and 200 million yuan, at a price not exceeding 60 yuan per share. The repurchased shares will be used for employee stock ownership plans or equity incentives. The company's official statement cites confidence in its future development prospects and recognition of its intrinsic value, aiming to safeguard investor interests.
The timing of the repurchase announcement is noteworthy. On July 6th, the company received notification from the family of its actual controller, Weng Xianding, that he had been placed under detention according to a relevant supervision commission's notice. The market widely views this repurchase as a move to "stabilize the market" in response to the sudden negative news.
According to the prospectus, Weng Xianding, born in 1961, holds dual master's degrees and has extensive experience in financial regulation. He worked at the Ministry of Finance and Finance Department of the State Planning Commission from July 1986 to September 1992, serving as deputy director and director of the securities division. From September 1992 to August 1993, he served as Assistant Director of the Shenzhen Planning Bureau, concurrently acting as the first resident commissioner of the China Securities Regulatory Commission in Shenzhen. In August 1993, he established Shenzhen New Industries Investment and served as its president.
Shenzhen New Industries Biomedical Engineering Co., Ltd. is the predecessor of the current company, originally established on December 15, 1995, by New Industries Investment and Donghu Materials with joint capital. The company was listed on the Shenzhen Stock Exchange's ChiNext board on May 12, 2020. In 2024, Weng Xianding ranked 276th on the Hurun Rich List with a fortune of 18 billion yuan.
Regarding the shareholding structure, as of the end of the first quarter of 2026, Tibet New Industries Investment Management Co., Ltd. holds 26.88% of the company's shares, making it the largest shareholder. Weng Xianding holds 99% of Tibet New Industries Investment Management Co., Ltd., making him its controlling shareholder. He also directly holds 3.18% of the listed company's shares, resulting in a combined holding of 30.06%, making him the actual controller of the company.
Regarding the reasons for the controlling shareholder's detention, Chairman Rao Wei of the company stated that the specific details are currently unclear, but it can be confirmed that it "has nothing to do with the company's business and is a personal matter." The company also clarified in its announcement that since September 8, 2021, Weng Xianding has not held any position at the company. The aforementioned matter does not involve the company and is not expected to have a significant impact on its production and operations.
On July 7th, the company's stock price closed down 3.71%. On the same day, it conducted its first repurchase of 50,000 shares, with a transaction price range of 38.95 to 38.97 yuan per share, totaling an investment of 1.9481 million yuan. The rapid repurchase action helped alleviate market panic, with the stock price recovering on July 8th and 9th, effectively digesting the short-term negative sentiment.
Rising Costs Squeeze Profits, "Hot Overseas, Cold Domestic" Market Split
The company is primarily engaged in the R&D, production, sales, and customer service of products in the in-vitro diagnostics field. Its products are mainly used to provide diagnostic information for disease prevention, diagnosis, treatment monitoring, prognosis observation, health status evaluation, and prediction of genetic diseases for medical institutions. Based on over 30 years of industry experience, the company has established four core technology platforms: magnetic microsphere R&D, key reagent raw material R&D, fully automatic diagnostic instrument R&D, and diagnostic reagent R&D.
In 2025, the company experienced "revenue growth without profit growth," ending its streak of continuous growth since listing. Full-year revenue reached 4.577 billion yuan, a year-on-year increase of 0.91%; net profit attributable to shareholders was 1.62 billion yuan, a year-on-year decrease of 11.39%; and non-GAAP net profit was 1.564 billion yuan, down 9.12% year-on-year.
Breaking down the two core product lines, reagents form the revenue base, with 2025 revenue of 3.29 billion yuan, up 0.67% year-on-year, accounting for 71.88% of total revenue. Instrument revenue was 1.281 billion yuan, up 1.72% year-on-year, accounting for nearly 28%. As the cost increase for both product categories exceeded the revenue growth rate, it directly dragged down the gross margins for reagents and instruments by 1.53 and 5.62 percentage points, respectively.
In 2025, a "hot overseas, cold domestic" market dynamic was evident. Domestic operating revenue was 2.564 billion yuan, a year-on-year decrease of 9.82%. Within this, domestic reagent revenue decreased by 13.77% year-on-year, although sales volume of chemiluminescence reagents increased by 3.2%. Domestic instrument revenue increased by 6.88% year-on-year. Overseas operating revenue for the same period was 2.007 billion yuan, a significant increase of 19.16% year-on-year. Overseas reagent revenue surged by 34.96%, with sales volume of overseas chemiluminescence reagents growing by 43.57%.
In the first quarter of 2026, the company achieved operating revenue of 1.129 billion yuan, a marginal increase of 0.34% year-on-year. Net profit attributable to shareholders was 442 million yuan, up 1.02% year-on-year. Non-GAAP net profit increased by 1.11% year-on-year to 421 million yuan. While performance showed marginal improvement, the overall growth rate slowed compared to the previous year, and the divergent performance between domestic and international markets persisted. Domestic operating revenue decreased by 1.85% year-on-year, but reagent revenue growth reached 9.64%. Overseas operating revenue increased by 3.33% year-on-year, with reagent revenue growing by 22.49%.
The company stated during its earnings briefing that in recent years, its domestic business has been adversely affected by factors such as volume-based procurement, adjustments to reagent VAT rates, and the unbundling of test packages. Reviewing industry trends, the sector has experienced a V-shaped recovery cycle since 2024, involving slowing growth, hitting a trough, and gradually rebounding. In the first quarter of 2026, the company's domestic business showed clear signs of recovery, with domestic reagent sales revenue increasing by nearly 10% year-on-year, and sales volume growth exceeding revenue growth. As overall industry sentiment recovers, the company's domestic business is expected to perform better.
The company further noted that the resilience of overseas reagent growth is evident. However, due to multiple external factors, overseas instrument revenue declined year-on-year, dragging down the overall performance of the overseas business. Core influencing factors primarily include external environmental disturbances such as geopolitical conflicts in the Middle East. Nevertheless, considering changes in the external environment, order digestion pace, and new product launch plans, the company expects overseas instrument shipments to continue improving in the second and third quarters of 2026.
Comments