Core Viewpoint - The report outlines the ongoing supervision and assessment of Shenzhen Huada Intelligent Manufacturing Co., Ltd. (华大智造) by CITIC Securities during its initial public offering and listing on the Sci-Tech Innovation Board, emphasizing compliance with regulatory requirements and the absence of significant issues during the review period [1][3][32]. Group 1: Continuous Supervision Overview - CITIC Securities has established a continuous supervision work system and a corresponding work plan, clarifying the requirements for on-site inspections [1]. - The sponsor has signed a sponsorship agreement with the company, which specifies the rights and obligations of both parties during the supervision period [1]. Group 2: Findings and Issues - During the supervision period, no significant issues were identified by the sponsor or the representative [3]. - The company faces risks related to significant performance declines or losses due to high R&D investments and market expansion costs, particularly if international relations worsen or macroeconomic conditions deteriorate [4]. Group 3: Core Competitiveness Risks - The company operates in a technology-intensive life sciences sector, facing risks related to product upgrades and technological updates, which require substantial R&D investments [5][6]. - Risks include the potential loss of core technical talent and the leakage of core technologies, which could adversely affect the company's long-term development [6]. - The company is also exposed to intellectual property litigation risks, particularly from competitors like Illumina, which could limit its market expansion in affected regions [7]. Group 4: Operational Risks - The global gene sequencing industry is rapidly evolving with increasing competition, particularly from established players like Illumina and Thermo Fisher [8]. - The company has developed a diverse product matrix but faces challenges due to economic downturns and regulatory pressures affecting market growth [9]. - New business and customer expansion efforts are critical, as the company must adapt to market demands and regulatory environments [10]. Group 5: Financial Risks - The company has adjusted its pricing strategy in response to competitive pressures, which has led to fluctuations in gross margins [12]. - There is a risk of bad debts from accounts receivable, despite measures taken to manage credit risk [13]. - Inventory levels are high, and potential declines in market demand could lead to significant write-downs [14]. Group 6: Macro Environment Risks - Geopolitical tensions and international trade protectionism pose risks to the company's product sales and market access [15]. - The company relies on overseas suppliers for some raw materials, making it vulnerable to supply chain disruptions due to trade conflicts [16]. Group 7: Financial Performance Indicators - The company's net profit attributable to shareholders has shown a significant reduction in losses, with a decrease of 65.28% year-on-year [16]. - The basic earnings per share also reflect a similar trend, indicating improved financial management and cost reduction efforts [16]. Group 8: Core Competitiveness - The company has developed a comprehensive product matrix in gene sequencing, leveraging its proprietary DNBSEQ technology to enhance its market position [18][19]. - The focus on intelligent automation and AI-driven solutions is expected to drive innovation and operational efficiency in laboratory settings [21][23]. Group 9: Research and Development - R&D expenditures have increased, with a higher proportion of costs being capitalized compared to the previous year [30]. - The company is actively pursuing various R&D projects to enhance its technological capabilities and product offerings [30]. Group 10: Compliance and Governance - The company has established a robust system for managing and utilizing raised funds, ensuring compliance with regulatory requirements [32]. - There are no significant changes in the shareholding status of major stakeholders during the supervision period [34].

Core Viewpoint - The company is preparing for its 2024 Annual General Meeting (AGM) to ensure the rights of shareholders and maintain order during the meeting, with specific rules and procedures outlined for participation and voting [1][2][3]. Group 1: Meeting Procedures - The company has established necessary verification processes for attendees to confirm their eligibility to participate in the AGM [1]. - Attendees must arrive on time for registration, and latecomers will not be allowed to vote [1]. - The meeting will follow a predetermined agenda for discussing and voting on proposals [1][3]. Group 2: Shareholder Rights and Responsibilities - Shareholders and their representatives have the right to speak, inquire, and vote during the AGM, but must adhere to rules to avoid disrupting the meeting [2]. - Requests to speak must be registered in advance, and speaking time is limited to five minutes [2]. - Questions that may disclose confidential information can be refused by the meeting host [2]. Group 3: Voting Process - Attendees must express their opinions on proposals by indicating agreement, disagreement, or abstention, and must sign their ballots [3]. - Two shareholder representatives will be appointed to oversee the counting of votes, ensuring transparency [3]. - The AGM will utilize both in-person and online voting methods, with results published afterward [3][6]. Group 4: Financial Reports and Proposals - The company will present several key reports during the AGM, including the 2024 Board of Directors' Work Report, the 2024 Supervisory Board Work Report, and the 2024 Financial Settlement Report [7][8][9]. - A proposal for the 2025 Financial Budget Report will also be discussed, reflecting the company's strategic planning [9][10]. - The company plans to propose no profit distribution for 2024 due to negative net profits, while a share buyback amounting to 230.27 million yuan will be considered as part of the cash dividend [13][14]. Group 5: Operational Highlights - The company reported a net loss of 600.83 million yuan for 2024, although this represents a reduction in losses compared to the previous year [26]. - The company has achieved significant advancements in its core product lines, including a 48.59% increase in sales volume of sequencing instruments [27]. - The company is focusing on enhancing its global supply chain and has established a manufacturing base in the United States to better serve local demand [27][29]. Group 6: Future Plans - The company aims to strengthen its governance structure and improve market value management in 2025 [30]. - Plans include enhancing investor relations and continuing to expand its international presence [30]. - The company will focus on maintaining compliance with regulations and improving operational efficiency [30].