Core Viewpoint - The recent board reshuffle at Da An Gene indicates a shift in control towards its major shareholder, Guangzhou Jin Kong, reflecting internal discord between shareholders and the previous management team [1][4]. Group 1: Board Restructuring - Da An Gene's ninth board of directors was approved with a vote of 7 in favor and 2 against, leading to the replacement of most members, including the current chairman, Xue Zheqiang [1]. - The new board candidates primarily come from Guangzhou Jin Kong, indicating a consolidation of control by the major shareholder [1][4]. - The dissenting votes came from Huang Luo and Zhang Bin, who have over 10 years of experience in the company, highlighting a potential conflict between the new board and the existing management [1][2]. Group 2: Financial Performance - Da An Gene experienced significant revenue growth during the COVID-19 pandemic, with revenues reaching 5.341 billion, 7.664 billion, and 12.046 billion from 2020 to 2022 [5]. - However, post-pandemic, the company reported revenues of 1.181 billion and 0.853 billion for 2023 and 2024, respectively, alongside net losses of -364 million and -823 million [5]. - The company's profitability has been adversely affected by high fixed costs and increased competition, leading to a decline in gross margin from 70.15% in 2020 to 37.55% in 2024 [6][5]. Group 3: Market Position and Challenges - Da An Gene's product line has faced pricing pressures due to increased competition, resulting in a significant drop in sales volume and production of its biological products [6]. - The company has struggled with maintaining core growth, as evidenced by its reliance on a limited product range and weak bargaining power in the market [5][6]. - The financial services segment, which once contributed significantly to revenue, has diminished, with earnings dropping from over 88 million in 2018 to around 30 million in 2023 and 2024 [7].

Core Viewpoint - Da An Gene has reported significant losses in its 2024 annual report, marking the largest loss in nearly 20 years, with revenue declining by 27.76% year-on-year to 853 million yuan and net losses reaching 925 million yuan, a staggering 983.98% decrease compared to the previous year [1][3] Financial Performance - The company achieved a revenue of 853 million yuan in 2024, down 27.76% year-on-year [1] - The net profit attributable to shareholders was a loss of 925 million yuan, while the net profit after deducting non-recurring items was a loss of 823 million yuan, representing declines of 983.98% and 126.11% respectively [1] - Da An Gene has made asset impairment provisions totaling 480 million yuan in 2024, with over 400 million yuan related to receivables [1] Market Dynamics - The company has faced a significant decrease in market demand and price adjustments, contributing to the decline in revenue and net profit [1] - The sales and production volume of biological products in 2024 dropped by over 80% compared to the previous year, indicating potential risks in market competitiveness [5] Historical Context - Da An Gene experienced a peak in performance during the COVID-19 pandemic, with revenues reaching 5.341 billion yuan in 2020, 7.664 billion yuan in 2021, and 12.046 billion yuan in 2022, but has since entered a period of adjustment [3] - The company has historically struggled with profitability, with significant fluctuations in net profit over the years [3] Competitive Landscape - The company has been under pressure from increased competition, leading to a decline in product prices, which has been a trend acknowledged since 2016 [4] - Despite a significant increase in the volume of molecular diagnostic products, prices have dropped significantly compared to previous years [4] Strategic Initiatives - Da An Gene has attempted to diversify its revenue streams by establishing a financial services segment since 2016, but this segment has shrunk significantly in recent years [6] - The company has indicated a focus on its core business, reducing the scale of its financial services to 30 million yuan in 2023 and 2024 [6] Management Changes - The company underwent significant changes in its shareholder and management structure, with a new controlling shareholder emerging in 2020, leading to conflicts with the previous management [7] - The current management team, led by Chairman Xue Zheqiang, faces the challenge of steering the company towards growth amidst these changes [7]