Core Insights - Eddycon Holdings Limited has signed a definitive share purchase agreement to acquire all issued shares of Crown Bio for $204 million, including performance-related payments, with the transaction expected to close by mid-2026 [1][2] - The acquisition aims to enhance Eddycon's R&D capabilities in high-growth therapeutic areas, capitalizing on the increasing demand for precision diagnostics in China and global biopharmaceutical innovation trends [1] - Post-acquisition, approximately 23.1% of the company's combined revenue will come from outside China, providing a new growth engine for Eddycon's stable diagnostic business [1] Company Strategy - The acquisition represents a key milestone in Eddycon's development, expanding its business footprint across the entire healthcare value chain, from clinical testing to drug discovery and translational research [2] - Eddycon aims to become a trusted partner in the biopharmaceutical innovation and precision diagnostics sectors, leveraging Crown Bio's world-class CRO service capabilities [2] Financial Impact - The stable cash flow generated from Eddycon's Independent Clinical Laboratory (ICL) business will complement Crown Bio's high-margin CRO services, creating a more balanced and scalable business model [1]

Core Viewpoint - The stock of Aidi Kang Holdings (09860) experienced a significant increase, closing up 9.27% at 6.6 HKD, with a trading volume of 41.53 million HKD, indicating positive market sentiment towards the company and the industry as a whole [1] Group 1: Industry Insights - Goldman Sachs' latest report suggests that the Chinese diagnostic industry, including Independent Clinical Laboratories (ICL) and In Vitro Diagnostic (IVD) companies, is expected to show signs of recovery starting from Q3 2025 [1] - In the ICL sector, both Kingmed and Dian Diagnostics reported improvements in operating cash flow, with a sequential increase in revenue and an expansion in profit margins, despite not meeting revenue targets [1] - CITIC Securities noted that the revenue decline in the ICL sector has narrowed in Q3 2025, although profitability remains impacted by impairments [1] Group 2: Company Performance - Aidi Kang reported a gross profit of 450 million and a net profit of 43 million, making it the most profitable among the top three ICL companies [1] - Dian Diagnostics achieved a turnaround, reporting a net profit of 10.27 million during the same period, while Kingmed remains in a loss position [1]