SHANGHAI RENDU BIOTECHNOLOGY CO.(SH:688193) Zheng Quan Zhi Xing·2025-05-22 12:37Core Viewpoint - The report outlines the continuous supervision work conducted by China International Capital Corporation for Shanghai Rendu Biotechnology Co., Ltd. during the 2024 fiscal year, emphasizing compliance with regulations and the company's operational integrity [1][2][3]. Continuous Supervision Work - The sponsor has established and effectively implemented a continuous supervision system, along with a corresponding work plan [1]. - A sponsorship agreement has been signed with Rendu Biotechnology, clarifying the rights and obligations of both parties during the supervision period [2]. - Continuous supervision is conducted through daily communication, regular visits, on-site inspections, and due diligence [3]. Compliance and Governance - Rendu Biotechnology has adhered to legal and regulatory requirements, ensuring that its directors and senior management comply with relevant laws and regulations [4][5]. - The company has established effective internal control systems, including financial management and internal audit procedures, which have been verified by the sponsor [7]. - The sponsor has reviewed the company's information disclosure documents to ensure there are no false records or misleading statements [6]. Financial Performance - For the fiscal year 2024, Rendu Biotechnology reported a revenue of 177.35 million, a 7.87% increase from 164.41 million in 2023 [18]. - The net profit attributable to shareholders was -7.81 million, a significant decline from 23.33 million in 2023 [18]. - The company has faced challenges in maintaining profitability, with a notable decrease in net assets and total assets compared to the previous year [19]. Industry Context - The in vitro diagnostic industry, particularly the molecular diagnostics sector, is experiencing rapid growth, driven by government support and increasing market demand [11][13]. - Rendu Biotechnology focuses on RNA molecular diagnostics, which offers higher specificity and sensitivity compared to DNA diagnostics, positioning the company favorably in the market [22]. - The company has established a strong market presence, particularly in the reproductive health sector, with a market share of 30.4% in the sexually transmitted infection diagnostics segment [24]. Risks and Challenges - The company faces risks related to significant declines in performance due to macroeconomic factors and changes in market demand for molecular diagnostics [9]. - Rendu Biotechnology must continuously innovate and develop new products to maintain its competitive edge in a technology-driven industry [10]. - The company is also challenged by the need to comply with evolving regulatory standards and the potential impact of international market dynamics [12][15]. Research and Development - Rendu Biotechnology has increased its R&D investment, focusing on the development of new products and technologies, including a digital micro-droplet RNA amplification detection system [26]. - The company has received multiple patents and regulatory approvals for its innovative products, enhancing its competitive position in the market [27][28]. - Ongoing projects cover a wide range of diagnostic areas, including reproductive health, blood-borne pathogens, and cancer diagnostics [27].