Concerns have emerged for the leading domestic in-vitro diagnostics (IVD) and chemiluminescence company.
Late last evening, Shenzhen New Industries Biomedical Engineering Co.,Ltd. (SZSE: 300832) disclosed an announcement stating that on July 6, the company received notification from the family of its actual controller, Weng Xianding, that he has been placed under residential surveillance in accordance with a notice from the relevant supervisory commission.
Recent Public Appearance
Weng Xianding was seen in public as recently as last month. On June 21, Weng Xianding, Chairman of Shenzhen New Industries Venture Capital Co., Ltd., and Xu Zibing, Chairman of Guoxin International Engineering Consulting Group, led a team to Yinchuan to investigate Ningxia International Tendering Consulting Group and held a symposium. During this visit, Weng's public identity was "Chairman of Shenzhen New Industries Venture Capital Co., Ltd."
Company's Efforts to Distance Itself
The listed company is attempting to downplay the operational connection between Weng Xianding and itself. The announcement pointed out that Weng has not held any position at the company since September 8, 2021. As of the disclosure date, all directors and senior executives of the company are performing their duties normally, board operations and production/management are normal, and the aforementioned matter does not involve the company and is not expected to have a material impact on its production and operations. The company stated it will continue to monitor developments and fulfill its information disclosure obligations.
Underlying Controlling Influence
However, from an equity perspective, Weng Xianding, despite holding no official position, remains the definitive controlling figure behind the company. Public information shows that as of the end of Q1 2026, Tibet New Industry Investment Management Co., Ltd. is the largest shareholder of Shenzhen New Industries Biomedical, holding a 26.88% stake. Weng Xianding personally holds a 3.18% stake, making him the fifth-largest shareholder. Weng holds a 99% equity interest in Tibet New Industry Investment Management Co., Ltd.
Background of the Controller
Weng Xianding's career background is notably extensive. In 2020, he ranked 166th on the Forbes China 400 Rich List with wealth of 21.82 billion yuan. In 2024, he ranked 276th on the Hurun China Rich List with wealth of 18 billion yuan and 1384th on the Hurun Global Rich List with assets of 18.5 billion yuan. Born in 1961, Weng is a Chinese citizen with no right of abode abroad, holds dual master's degrees, and is an economist. From July 1986 to September 1992, he worked in the Finance and Banking Department of the former State Planning Commission, serving as deputy division chief and later division chief for securities. From September 1992 to August 1993, he served as Assistant Director of the Shenzhen Municipal Planning Bureau, concurrently holding the role of the China Securities Regulatory Commission's first resident commissioner in Shenzhen. In August 1993, he founded New Industry Investment and served as its president; from 2004 onward, he served as its chairman and president. Weng served as a director on the board of Shenzhen New Industries Biomedical from August 2012 to September 2021. Following the expiration of the third board's term on September 8, 2021, he has not held any position at the company.
Succession Planning
At that time, Weng Xianding's son, Weng Heming, was elected as a company director during that same board transition. Public information shows Weng Heming was born in 1998 and graduated from New York University's Stern School of Business in 2019. He has served as a director of Shenzhen New Industries Biomedical since September 8, 2021, at the age of 23. He currently serves as a non-independent director and a member of the strategy committee on the company's fifth board.
Company Profile and Recent Performance
Shenzhen New Industries Biomedical is primarily engaged in the R&D, production, sales, and customer service of products in the in-vitro diagnostics field, with its main products being fully automated chemiluminescence immunoassay analyzers and matching reagents. Reportedly, it was the first domestic chemiluminescence manufacturer to obtain EU IVDR CE certification and the first to gain U.S. FDA market access. It listed on the Shenzhen Stock Exchange in 2020. From a performance perspective, the company has faced recent challenges. In 2025, it achieved operating revenue of 4.577 billion yuan, a year-on-year increase of 0.91%; net profit attributable to shareholders was 1.620 billion yuan, a year-on-year decrease of 11.39%; and adjusted net profit was 1.564 billion yuan, down 9.12%. Specifically, in 2025, the company's domestic main business revenue was 2.564 billion yuan, a decrease of 9.82% year-on-year, with domestic reagent business revenue down 13.77%. In contrast to domestic market pressures, the company's overseas business achieved a 19.16% year-on-year growth in 2025, with main business revenue reaching 2.007 billion yuan. Entering 2026, the company's performance showed some recovery but pressures remain. In Q1 2026, operating revenue was 1.129 billion yuan, up 0.34% year-on-year; net profit attributable to shareholders was 442 million yuan, up 1.02%; adjusted net profit was 421 million yuan, up 1.11%.
Market Reaction and Company Response
From a secondary market perspective, the company's stock price experienced a significant decline yesterday. As of the close on July 6, Shenzhen New Industries Biomedical's stock price was 40.97 yuan per share, down 7.52%. After opening today, the stock fell over 8% at one point before recovering somewhat. As of 2:11 PM, the stock was quoted at 38.96 yuan per share, a decline of 4.91%.
On the morning of July 7, Shenzhen New Industries Biomedical announced a share repurchase plan, interpreted by some investors as a move to counter the negative news regarding the actual controller and stabilize secondary market confidence.
Currently, the market is also speculating on the reasons for Weng Xianding's detention. In the short term, the company is relying on share buybacks to counter the stock decline, but the extent of medium-to-long-term valuation recovery will likely depend on whether the detention case implicates the listed company. For now, everything remains uncertain.
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