Ruiang Gene (688217. SH) actual controller Xiong Hui and four other executives were detained.

On the evening of October 25, Ruiang Gene announced that Xiong Hui, the actual controller, chairman and general manager and core technical personnel of the company, Xiong Jun, the actual controller, director and deputy general manager, He Junyan, the deputy general manager, and Xue Yuwei, the deputy general manager, were all transferred to criminal detention (previously under residential surveillance at a designated location, etc.), and the suspected crime was changed from illegal business operation to fraud.

According to the announcement, at present, the company has made proper arrangements for related matters, the acting chairman, other senior executives and core technical personnel perform their duties normally, the company's business is carried out normally, and business activities are carried out normally.

involves the actual controller's siblings and two vice presidents

On the evening of July 22 this year, Ruiang Gene issued a major announcement saying that it received a notice from the family of Xiong Hui, the actual controller, chairman and general manager, and core technical personnel, the family of Xiong Jun, the actual controller, director and deputy general manager, the family of He Junyan, the deputy general manager, and the family of Xue Yuwei, deputy general manager.

On July 22, Ruiang Gene urgently convened the 25th meeting of the second board of directors to deliberate and pass the "Proposal on Electing Mr. Gao Shangxian to Perform the Duties of the Company's Legal Representative, Chairman and General Manager", and agreed that Gao Shangxian, the actual controller and director of the company, would act as the company's legal representative, chairman and general manager.

Screenshot of the official website of Ruiang Gene

According to the disclosed information, Xiong Hui and Gao Shangsheng are husband and wife, and Xiong Hui and Xiong Jun are sisters and brothers. According to the prospectus, Xiong Hui was born in 1972, 52 years old this year, with a master's degree in internal medicine from Shanghai Jiao Tong University School of Medicine, a doctorate in microbiology from Fudan University, and a postdoctoral fellow at the Burnham Institute for Medical Research in United States. Since January 2010, she has successively founded Yuanqi Biotech and Ruiang Co., Ltd., and is responsible for the overall operation of the company.

Born in 1973, Deputy General Manager He Junyan graduated from Shanghai Jiao Tong University School of Medicine, served as a resident in the Department of Oncology of Huangpu District Central Hospital, and later worked in pharmaceutical sales management and marketing departments of multinational companies such as Schering-Plough, Eli Lilly & Company, Sanofi, Shanghai Roche Pharmaceutical Co., Ltd., and AbbVie (China). Since April 2023, He Junyan has served as the deputy general manager of Ruiang Gene.

From July 1999 to October 2001, he served as a resident physician in Longhua Hospital affiliated to Shanghai University of Traditional Chinese Medicine, and from 2003 to 2022, he successively worked in Pfizer Investment Co., Ltd., Roche Diagnostics, Abbott, Shanghai Rendu Biotechnology Co., Ltd., AstraZeneca China (Investment) Co., Ltd. and other companies, and has been the deputy general manager of Ruiang Gene since June 2023.

On July 23, Ruiang Gene fell by 20%. In response to the compulsory measures taken against a number of executives suspected of illegal operation, Ruiang Gene said in the semi-annual report that at present, the relevant evidence collection work is underway, and if the public security organs determine that the actual controller and executives are involved in criminal offenses, the matter may have an adverse impact on the company's business.

Zhang Qi, a partner at Beijing Yingke Law Firm, said, "Criminal detention is a more severe coercive measure than residential surveillance. Zhang Qi said that criminal detention must be carried out in detention centers, during which the detainee is completely deprived of his freedom. Criminal detention means that the police have some evidence of a crime, which is a prerequisite for detention. However, this does not mean that the detainee will necessarily be found guilty, as the ultimate guilt needs to be heard and decided by the court.

The net profit in the first half of the year was more than 9 million

According to public information, Ruiang Gene was established in 2012 and listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange in May 2021. The main business of Ruiang Gene is the research and development, production, sales, scientific research and testing services of in vitro diagnostic products, mainly providing accurate detection of genes and antigens for patients with blood diseases, solid tumors and infectious diseases, and providing a basis for the formulation of individualized treatment plans such as disease diagnosis, risk assessment, disease typing, targeted drug selection and efficacy monitoring.

Screenshot of the official website of Ruiang Gene

In June this year, Ruiang Gene said on the investor interactive platform that the company has a number of first or exclusive product certificates in the field of hematological oncology. The company's leukemia 3 fusion gene kit products obtained the Class III medical device certificate in 2012, and it has been the exclusive product in China for up to 6 years, so that the product occupies more than two-thirds of the market share in the initial diagnosis and screening market of leukemia fusion gene detection.

In terms of performance, in 2023, Ruiang Gene's revenue will be 258 million yuan, a year-on-year decrease of 39.14%; net profit attributable to shareholders of listed companies was 7.9307 million yuan, down 80.41% year-on-year. Ruiang Gene's operating income in the first half of 2024 will be about 135 million yuan, a year-on-year increase of 5.66%; The net profit attributable to shareholders of listed companies was about 9.2218 million yuan, a year-on-year decrease of 43.20%.

In the secondary market, the share price of Ruiang Gene fluctuated and fell, and although it rebounded sharply in the past month, it still fell by more than 45% during the year.

According to media reports, Xiong Hui is one of the few female "heads" on the stage of the Science and Technology Innovation Board, and has studied under academician-level biology masters such as Chen Zhu, Chen Saijuan, and Zhao Guoping. The report also quoted Xiong Hui as saying, "We hope to truly empower the service capabilities of Ruiang Gene in tumor detection to the primary medical market and benefit more people." ”