Core Insights - The IVD industry is experiencing increased merger and acquisition (M&A) activities as companies seek to expand their product matrices and explore new growth paths amid industry profitability pressures and intensified competition [1][4] M&A Activities - On August 4, 2023, Shanghai TuoJing Life Science Technology Co., Ltd. announced plans to acquire 82% of Wuhan Kanglu Biological Technology Co., Ltd. for a total transaction amount of 328 million yuan. This acquisition will enhance TuoJing's capabilities in molecular pathology, particularly in tumor diagnostics [2] - Beijing LideMan Biochemical Co., Ltd. is also planning to acquire up to 70% of Beijing Xiansheng Xiangrui Biological Products Co., Ltd. This acquisition will add tuberculosis diagnostic screening and integrated treatment business to LideMan's IVD portfolio, strengthening its competitive position [2] - In May 2023, AidiKang Holdings Ltd. announced a 229 million yuan acquisition of Suzhou Yuande Weikang Biomedical Co., Ltd. and Suzhou Yuande Youqin Medical Testing Co., Ltd., enhancing its internal R&D and manufacturing capabilities in blood diagnostics [3] Industry Trends - The IVD industry is undergoing a quality improvement phase, with companies facing declining performance. For instance, TuoJing reported a revenue of 437 million yuan in 2024, a year-on-year decrease of 19.53%, and a net profit drop of 61.37% to 34.53 million yuan. LideMan reported a net loss of 75.1 million yuan in 2024 [4] - The decline in performance is attributed to intensified competition due to centralized procurement of IVD reagents and a return to routine medical diagnostics post-pandemic. Companies are thus shifting towards more clinically valuable niche markets [4] - The trend of consolidation in the domestic IVD sector is expected to continue, driven by global diagnostic market demands for technological integration and the desire of Chinese IVD companies to expand overseas [4] - The IVD industry has significant growth potential, particularly in molecular diagnostics, tumor-related testing, and self-testing products, with domestic brands likely to capture larger market shares in key areas [5]