Investment Exceeding 100 Million Yuan in Three Days, Shengxiang Biotechnology's Multi-front Layout Still Reports Losses

Why is AI · Shengxiang Bio accelerating investments during a profit decline?

Beijing News (Reporter Liu Xu) On the evening of March 15, Shengxiang Bio-Tech Co., Ltd. (hereinafter referred to as “Shengxiang Bio”) announced that it plans to jointly invest with its affiliate, Hunan Jinfurong Shengxiang Bio Equity Investment Partnership (Limited Partnership) (hereinafter referred to as “Fund”), to establish Hunan Shengwei Huasi Biotechnology Co., Ltd. (tentative name, hereinafter referred to as “Joint Venture”). The joint venture will serve as the investment entity for the subsequent acquisition of 100% equity of Huasi Wu Microbial Technology (Shenzhen) Co., Ltd. (hereinafter referred to as “Huasi Wu Micro”). Shengxiang Bio will contribute a total of 65.438 million yuan of its own funds. After the transaction is completed, the joint venture and Huasi Wu Micro will be included in the company’s consolidated financial statements.

Huasi Wu Micro is mainly engaged in the research, development, production, and sales of in vitro diagnostic (IVD) test reagents and supporting instruments for human and veterinary use (including but not limited to nucleic acids, proteins, small molecules, cells, etc.), and owns independent intellectual property rights for infrared fluorescence enhancement technology. The company’s existing products focus on immunofluorescence and have obtained more than ten patents for invention and utility models in areas such as fluorescent dye molecule design, fluorescent nanobead preparation, immunofluorescence/immunodiagnostics equipment and consumables, and detection applications. The products have obtained over 20 registration certificates from the National Medical Products Administration and more than 60 CE certifications in the European Union.

As of December 31, 2025, Huasi Wu Micro’s total assets are 8.539 million yuan, total liabilities are 20.638 million yuan, and net assets are -12.099 million yuan; in 2025, it achieved operating revenue of 3.2015 million yuan and a net loss of 6.914 million yuan.

Shengxiang Bio stated that infrared fluorescence enhancement technology is a key technology in in vitro diagnostics that amplifies near-infrared light signals to improve detection performance, greatly increasing sensitivity and accuracy. This technology is driving the entire IVD industry toward ultra-sensitive and deep-penetration directions and is a crucial foundation for breakthroughs in high-end immunodiagnostics, molecular diagnostics, and precision medicine. Huasi Wu Micro’s core business revolves around infrared fluorescence enhancement technology, pioneering POCT detection technology based on infrared fluorescent nanobeads. The company’s business is highly synergistic with Shengxiang Bio. After this investment, it will help further improve the company’s industrial layout.

This is Shengxiang Bio’s second investment within three days. On March 13, Shengxiang Bio announced its plan to jointly invest with its affiliate, Hunan Jinfurong Shengxiang Bio Equity Investment Partnership (Limited Partnership), to invest in Beijing Zheyuan Technology Co., Ltd. (hereinafter referred to as “Zheyuan Technology”). The company will invest 40 million yuan of its own funds, and the fund will invest 50 million yuan. After transferring equity and capital increase transactions, the company will hold a 4.02% stake in Zheyuan Technology.

Zheyuan Technology is a platform-based company that empowers pharmaceutical innovation with digital life sciences technology, with its core technology platform being a knowledge graph built from massive open literature and biomedical research data. Shengxiang Bio stated that this investment will enhance the company’s industrial chain layout in the “AI + Healthcare” field.

Shengxiang Bio is a leading enterprise in the molecular diagnostics industry. During the COVID-19 pandemic, its developed COVID-19 nucleic acid test kit was approved on January 28, 2020, making it one of the earliest six companies in China to get approval for such products. In August 2020, with the halo of being the “first stock fighting the pandemic,” Shengxiang Bio was listed on the STAR Market.

After the COVID-19 nucleic acid test kit was launched, Shengxiang Bio’s revenue grew from less than 400 million yuan to 4.763 billion yuan in 2020, 4.515 billion yuan in 2021, and 6.45 billion yuan in 2022, with net profits of 2.617 billion yuan, 2.243 billion yuan, and 1.937 billion yuan respectively. At the end of 2022, major changes in China’s public health policies led to the loss of COVID-related revenue, causing a significant decline in Shengxiang Bio’s performance. In 2023, its operating income and net profit attributable to shareholders were 1.007 billion yuan and 364 million yuan, respectively, down 84.39% and 81.22% year-on-year.

Shengxiang Bio has been actively seeking new growth points. In its 2022 annual report, it proposed a “second entrepreneurship” and embarked on an acquisition spree. In 2023, Shengxiang Bio invested 171 million yuan with affiliates to establish Hunan Shengxiang An Sai Biotechnology Co., Ltd., expanding its layout in immunodiagnostic chemiluminescence. In 2024, it invested another 123 million yuan with affiliates to establish Hunan Shengwei Su Min Biotechnology Co., Ltd., focusing on rapid drug sensitivity testing. In January 2025, Shengxiang Bio acquired 100% of Zhongshan Weiming Haiji Biological Medicine Co., Ltd. for 805 million yuan, entering the growth hormone field. In February 2025, it acquired a 54% stake in Changsha Hong’an Jiyuan Biotechnology Co., Ltd., focusing on POCT blood cell analyzers. In March 2025, it spent 130 million yuan to increase its stake in Zhenmai Biological from 11.90% to 15.55% through equity transfer and capital increase. In May 2025, Shengxiang Bio invested 100 million yuan to increase its stake in Hunan Shengwei Kunteng Biotechnology Co., Ltd.

Despite multiple strategic deployments, Shengxiang Bio’s revenue has continued to grow for two consecutive years, but its net profit attributable to shareholders is still declining. In 2025, Shengxiang Bio achieved operating revenue of 1.648 billion yuan, a year-on-year increase of 13.04%, but net profit was 198 million yuan, down 28.10% year-on-year. Shengxiang Bio explained that in 2025, the value-added tax rate for self-produced IVD reagents increased from 3% to 13%, and the gradual implementation of national centralized procurement policies put pressure on product prices, significantly impacting profits. Additionally, increased investment in R&D, strategic mergers, and acquisitions have temporarily diluted profits.