Source: Changjiang Business News

Huada Zhizao (688114.SH), the leader of gene sequencing equipment, responded to rumors that there were several factual errors in the company's allegations, which may be revised or terminated.

on the evening of January 28, huada zhizao issued a clarification announcement. on January 26, the company learned that huada zhizao was mentioned in a recent draft BIOSECURE Act (hereinafter referred to as "the draft") proposed by the United States. The company noted that the draft is still in the proposal stage, and there are many factual errors in the company's allegations, which may be revised or terminated in the future, and there is still great uncertainty about whether the law can be formed.

Huada Zhizao said that since its establishment, the company has been adhering to the concept of "innovation and wisdom to lead life science and technology" and is committed to becoming a "creator of core tools for life science and technology", enabling customers to achieve more innovative breakthroughs in "reading, writing and saving" and expansion of application scenarios by deepening platform applications. In the process of development, the company strictly abides by the laws and regulations of the operating market, and pays great attention to data security and privacy protection. As an upstream equipment provider in the gene sequencing industry, the company's business processes do not involve data collection, and the data generated by customers based on the company's sequencing platform are collected, stored, processed and controlled by the customers themselves.

Huada Zhizao said that the company will continue to pay attention to the development of the incident, timely evaluate and verify the impact of the incident on the company, and timely fulfill the obligation of information disclosure.

Huada Zhizao was spun off from Huada Group in 2016. It is mainly engaged in the research and development, production and sales of life science and biotechnology products such as gene sequencers and laboratory automation business-related instruments and equipment, reagent consumables, etc. The actual controller of the company is Wang Jian.

As a result of the epidemic, sales of equipment made by Huada Wisdom soared, driving a surge in performance. From 2020 to 2022, the company's operating income was 2.78 billion yuan, 3.929 billion yuan and 4.231 billion yuan respectively, with a year-on-year increase of 154.73, 41.32 and 7.69; the net profit attributable to the shareholders of the parent company (hereinafter referred to as "net profit") was 0.261 billion yuan, 0.484 billion yuan and 2.026 billion yuan respectively, with a year-on-year increase of 206.98, 85.38 and 319.04 respectively. However, the company's sharp increase in net profit in 2022 was mainly due to non-recurring gains and losses of up to 1.762 billion yuan. After deducting non-recurring gains and losses, the net profit was 0.264 billion yuan, a year-on-year decrease of 46.43.

In September 2022, with the help of a surge in performance, Huada Zhizao landed on the-share market board. In 2023, one year after listing, the company's operating results changed rapidly. In the first three quarters of 2023, the company achieved operating income of 2.204 billion yuan, down 33.01 percent from the same period last year, and net profit and non-net profit were losses of 0.198 billion yuan and 0.243 billion yuan respectively, down 109.78 percent and 162.84 percent from the same period last year. Among them, in the third quarter, the company's net profit and non-net profit were -0.1 billion yuan and -0.108 billion yuan respectively, with a single-quarter loss of more than 100 million yuan.

it is worth mentioning that the fund-raising project of huada zhizao has been postponed.

huada zhizao IPO raised 3.602 billion yuan, which is planned to be used for the construction of huada zhizao intelligent manufacturing and research and development base and other projects and to supplement working capital.

on December 12, 2023, the company announced that as of September 30, 2023, the accumulated investment amount of "huada zhizao research and development center project" was 75.2973 million yuan. As the company has obtained the space to optimize the allocation of the production and operation site, and considering that it still needs a long time to rebuild after purchasing the site, the company decided to change the implementation mode and location from purchasing the product technology research and development center of the office building construction company in Nanshan District of Shenzhen City to using the usable real estate located in Yantian District of Shenzhen City to carry out research and development projects. Based on this, the deadline for the project to reach the intended serviceable state is extended to December 2025.

In early trading on January 19, the share price fell more than 11% despite the company's clarification of the rumor.