Core Viewpoint - The internal conflicts within the board of directors of Nanmo Biology have drawn significant attention from the capital market, particularly following the recent management changes and the ongoing disagreements among board members [1][4]. Group 1: Management Changes - Nanmo Biology announced the re-election of Fei Jian as chairman and the appointment of Zhang Chunming as general manager and CFO, marking a significant shift in the company's core management [1][3]. - The board's recent meetings revealed multiple dissenting and abstaining votes regarding the election of committee members and the appointment of the new general manager, indicating persistent internal divisions [2][3]. Group 2: Board Dynamics - The newly formed board committees are led by members nominated by major shareholders, with Fei Jian holding significant influence over strategic decisions [2]. - The absence of former general manager Wang Mingjun from the committee member list suggests a decline in his influence within the company, as he opposed several key proposals during the board meetings [2][3]. Group 3: Historical Context - Fei Jian and Wang Mingjun, once aligned as partners, have recently experienced a breakdown in their collaborative relationship, which has become evident in board decisions and strategic discussions [3][4]. - The dissolution of their previously unified action agreement has led to increased conflicts during board elections and strategic planning, raising concerns about the stability of control within Nanmo Biology [4]. Group 4: Financial Performance - Nanmo Biology has shown revenue growth, with a reported revenue of 196 million yuan in the first half of the year, reflecting a year-on-year increase of 10.69%, while the net profit attributable to shareholders rose by 298.69% to 18.17 million yuan [5]. - Despite the revenue growth, the company has faced challenges with profitability, as indicated by negative net profits for three consecutive years from 2022 to 2024 [5].

Core Viewpoint - The recent board meeting of Nanmo Biology (688265.SH) marked a significant management reshuffle, with the company's actual controller Wang Mingjun not re-elected as general manager, highlighting internal governance issues and strategic conflicts within the company [1][12]. Group 1: Company Governance Issues - The dual-controller structure of Nanmo Biology, involving Chairman Fei Jian and General Manager Wang Mingjun, initially provided complementary strengths but has evolved into a source of governance deadlock and internal strife post-IPO [2][9]. - The internal conflicts have escalated, leading to public disputes over strategic decisions, such as the establishment of facilities in economically disadvantaged areas and IT infrastructure investments, which have adversely affected company performance [10][11]. Group 2: Business Development and Market Position - Nanmo Biology operates in the innovative drug industry, focusing on genetically modified animal models, particularly mice, which are essential for drug development processes [3][4]. - The company experienced a pivotal growth phase after the introduction of CRISPR technology in 2012, which allowed for the mass production of genetically engineered mouse models, significantly expanding market opportunities [4][5]. - Despite initial success and a successful IPO in December 2021, the company has faced ongoing losses and a declining stock price, exacerbated by internal conflicts and strategic misalignments [7][11]. Group 3: Recent Developments - The board's recent restructuring resulted in a new leadership team, with Zhang Chunming appointed as general manager, following the removal of Wang Mingjun, indicating a shift in control dynamics within the company [13][14]. - The ongoing internal strife has drawn regulatory scrutiny, with the Shanghai Stock Exchange issuing inquiries regarding the governance issues and the board's decision-making processes [1][12]. Group 4: Market Outlook - The market for genetically modified mice in China is projected to grow significantly, with a compound annual growth rate of 24% from 2019 to 2024, indicating potential future opportunities for Nanmo Biology if governance issues can be resolved [15][16].

Group 1: Industry Overview - The new gene editing technology developed by the Institute of Genetics and Developmental Biology of the Chinese Academy of Sciences allows precise manipulation of large DNA segments ranging from thousands to millions of bases, significantly enhancing the scale and capability of gene editing [1] - The gene editing market is projected to reach an annual revenue of $30 billion by 2030, indicating a strong growth trajectory [2] - Gene editing technology is transitioning from theoretical research to practical applications, with significant implications in medicine for treating genetic diseases and in agriculture for developing new crop varieties [2] Group 2: Company Developments - Approximately 20 listed companies in the A-share market are involved in gene editing technology [3] - A company has established a cotton research institute in collaboration with Huazhong Agricultural University, utilizing gene editing and hybridization techniques for cotton seed development [3] - Another company is conducting research on the water buffalo genome and has developed a breeding model based on whole genome data analysis to enhance breeding efficiency [3] - A biotechnology company focuses on providing gene-modified animal models and related technical services for drug development and disease research, having developed over 21,000 models by the end of 2024 [3] - Beijing Baipu Sais Biotechnology Co., Ltd. has launched CAS series proteins for targeted gene editing applications [4]