Mingde Biology's Performance Reversal: Likely to Wear "ST" Status

Can AI acquisition strategies help companies escape delisting crises?

On the evening of March 22, Wuhan Mingde Biotechnology Co., Ltd. (hereinafter referred to as “Mingde Biotech”) released a revised forecast for 2025 performance, indicating that the company’s net profit attributable to the parent will be a loss. Previously, the forecast predicted a positive net profit attributable to the parent. Additionally, Mingde Biotech issued a reminder that the company’s stock trading may be subject to delisting risk warning by the Shenzhen Stock Exchange after the 2025 annual report is disclosed (with the stock abbreviation prefixed with “*ST”).

Company stock may be subject to delisting risk warning

The latest performance forecast released on March 22 shows that Mingde Biotech expects 2025 operating revenue of 250 million to 300 million yuan; net profit attributable to shareholders of the listed company will be a loss of 15 million to 25 million yuan; and net profit after deducting non-recurring gains and losses will be a loss of 100 million to 140 million yuan.

The performance forecast issued on January 31 indicated that Mingde Biotech expected net profit attributable to shareholders of the listed company for 2025 to be approximately 12 million to 18 million yuan; and net profit after deducting non-recurring gains and losses to be approximately -98 million to -78 million yuan.

Regarding the reasons for the performance revision, Mingde Biotech stated that it conducted a comprehensive review and cautious analysis of operating income. Based on the principle of prudence, due to significant uncertainty in receivables collection for some transactions, the company temporarily did not recognize certain income in 2025, leading to a reduction in operating revenue and net profit attributable to shareholders. The company further communicated with its annual audit accountants to conduct impairment tests on assets with signs of impairment. Based on prudence, adjustments were made to asset impairment losses for inventories, fixed assets, and other assets, resulting in a decrease in net profit attributable to shareholders.

Mingde Biotech expects that the audited total profit, net profit, and net profit after deducting non-recurring gains and losses for 2025 will be negative, and revenue after deduction will be below 300 million yuan. According to Article 9.3.1, Paragraph 1, Item (1) of the Shenzhen Stock Exchange Listing Rules, the company’s stock trading may be subject to delisting risk warning after the disclosure of the 2025 annual report (with the stock abbreviation prefixed with “*ST”).

Intensive pursuit of equity acquisitions to seek industry chain complementarity

Mingde Biotech mainly engages in the research, development, production, sales, and service of in vitro diagnostic reagents and instruments, covering immunology, blood gas, and molecular diagnostics. As COVID-19 testing wanes, in vitro diagnostics industry procurement prices decline, and industry competition intensifies, the company’s operating performance has been under continuous pressure in recent years. In 2022, its revenue reached 10.53 billion yuan, with a net profit attributable to the parent of 4.208 billion yuan. However, since then, the company’s net profit attributable to the parent has declined for two consecutive years, and its non-recurring net profit has remained negative.

In 2023 and 2024, Mingde Biotech’s revenue was approximately 750 million and 350 million yuan, respectively, with year-on-year declines of 92.88% and 53.30%; net profit attributable to the parent was approximately 74.9 million and 74.5 million yuan, with declines of 9.22% and 0.54%; and non-recurring net profits were approximately -124 million and -140 million yuan. The 2025 performance forecast shows revenue expected to fall below 300 million yuan, with net profit attributable to the parent turning from positive to negative.

Facing ongoing performance decline, Mingde Biotech has been seeking solutions, initiating two acquisitions in the past six months, focusing respectively on emergency rescue and critical illness and chronic disease management.

In December 2025, Mingde Biotech announced plans to acquire 100% equity of Wuhan Bikaier Rescue Supplies Co., Ltd. (hereinafter “Wuhan Bikaier”) held by Lanfan Medical Co., Ltd., in cash. Wuhan Bikaier is one of the early companies to introduce international FirstAid concepts and technology, mainly engaged in emergency kits as the core, with a comprehensive layout of emergency equipment, single items, and services. The acquisition aims to promote the company’s integrated emergency treatment business from medical institutions to industrial and household scenarios, building a “diagnosis—protection—treatment” collaborative ecosystem, and strengthening its market position and competitiveness in the critical illness field. The transaction is actively progressing, but no formal agreement has been signed yet, and there is significant uncertainty.

In January 2026, Mingde Biotech announced plans to acquire a 51% stake in Hunan Lanyi Medical Devices Co., Ltd. (“Hunan Lanyi”) through capital increase and equity purchase, with a total transaction price of 35.71 million yuan. If Hunan Lanyi’s operations from 2026 to 2028 meet the conditions specified in the acquisition agreement, the company will further acquire the remaining shares, ultimately holding 100% of Hunan Lanyi.

Hunan Lanyi focuses on IVD instruments, reagents R&D, manufacturing, and services, covering critical and chronic disease management. It has mastered high-performance liquid chromatography (HPLC) for glycated hemoglobin testing, with the AH-600 series as its core product, serving as a domestically produced alternative and key product for chronic disease management. The acquisition aims to expand the industry chain horizontally, build a complete product ecosystem, enhance service capabilities for medical institutions, and quickly tap into potential markets and new customer groups.

As of now, Hunan Lanyi has completed the first phase of acquisition registration and obtained a business license from the Changsha Kaifu District Market Supervision Administration. After this registration, Mingde Biotech owns 51% of Hunan Lanyi, making it a controlling subsidiary included in the consolidated financial statements.

Regarding these two acquisitions, some investors questioned on the investor platform: “The company has been in a seriously undervalued state for two years. Why are these two acquisitions still targeting companies in a highly competitive ‘red ocean’ market? Why not change strategy and make good use of the 4 billion yuan in cash on hand?”

On January 28, Mingde Biotech responded to investors, stating that the acquisitions focus on synergy with core business and enhancing competitiveness, by strengthening the main business and improving intrinsic value. The target selection emphasizes industry chain complementarity to further improve comprehensive service capabilities. Regarding cash reserves, the company adheres to a cautious approach, ensuring operational cash flow safety, supporting core operations and industry chain layout, while continuously evaluating opportunities such as upgrading core business and entering cutting-edge sectors that can genuinely enhance company value, balancing short-term stability with long-term growth potential.

The Beijing News reporter Liu Xu

Editor Wang Lu

Proofreader Liu Baoqing