Core Viewpoint - The article highlights the downfall of a once-thriving company, nucleic acid testing giant, Nuzi Gene, which rapidly expanded during the pandemic but faced severe operational and financial challenges post-pandemic, leading to mass layoffs and legal disputes over unpaid commissions and wages [1][2][42]. Group 1: Company Operations and Employee Experiences - The company experienced a rapid expansion during the pandemic, with a workforce that grew from nearly 5,000 to just a few hundred as demand plummeted post-pandemic [2][42]. - Employees, including business directors, faced significant challenges in receiving their commissions, with disputes arising over the interpretation of commission structures and payment terms [23][40]. - The internal environment was marked by chaos, with employees working long hours under pressure, often without proper compensation or recognition for their efforts [8][11][17]. Group 2: Financial Performance and Market Position - Nuzi Gene reported a cumulative testing volume exceeding 700 million people, generating substantial revenue during the pandemic, with 450 million yuan earned in just six months [17][42]. - Despite the initial financial success, the company struggled to maintain profitability as the market shifted, leading to a decline in business and the eventual abandonment of IPO plans due to regulatory changes [43][44]. - The company faced significant operational issues, including quality control problems in its laboratories, which were exacerbated by the rush to meet testing demands [10][12][16]. Group 3: Legal and Ethical Issues - Numerous employees initiated legal actions against the company for unpaid wages and commissions, with many feeling that their contributions were exploited without fair compensation [25][30][39]. - The company employed various tactics to minimize payouts to employees, including reclassifying projects as "government-directed" to justify lower commission rates [40][41]. - The article illustrates a culture of internal conflict and competition among employees, with high-level executives often taking credit for the work of lower-level staff, leading to widespread dissatisfaction [18][21][38].

Core Viewpoint - The IVD industry has experienced explosive growth in the past three years, but many companies face severe cash flow issues due to delayed payments for nucleic acid testing services, leading to a widespread "debt collection" crisis in the sector [2][4][7]. Group 1: Industry Challenges - The nucleic acid testing industry has seen significant revenue increases, but much of this growth is not reflected in actual cash flow, resulting in a "return payment dilemma" [2][4]. - As of the end of 2024, the total amount owed to nucleic acid testing companies exceeded 80 billion yuan, causing a 23% year-on-year decline in R&D investment in the IVD sector and leading to the bankruptcy of 17 small and medium-sized testing institutions [7][8]. - Companies like Beijing Ditai Kexun Biotechnology Co., Ltd. are struggling with substantial accounts receivable, with debts from local health departments remaining unpaid, putting them on the brink of bankruptcy [5][6]. Group 2: Policy Developments - The implementation of the "Private Economy Promotion Law" and the revised "Regulations on Payment of Small and Medium-sized Enterprises" are seen as crucial steps to improve the cash flow situation for IVD companies [3][8]. - The new regulations enhance the rights of companies in debt recovery, allowing them to charge interest on overdue payments and providing legal backing for their claims [8][9]. - The government has acknowledged the long-term debts incurred during the pandemic and is taking steps to address these issues, which is viewed as a positive signal for the IVD industry [8][9]. Group 3: Key Players and Events - Zhang Hezi, founder of Nucleic Huaxi Laboratory, has shifted from being an industry leader to a "debt collector," suing multiple health departments for unpaid nucleic acid testing fees [3][4]. - The company has initiated lawsuits against health authorities in various regions, highlighting the industry's struggle with delayed payments [3][4].

Core Viewpoint - Zhang Hezi, once known as the "Nucleic Acid King," is now embroiled in legal disputes with health authorities over unpaid testing fees, highlighting the financial struggles faced by third-party medical testing companies in the post-pandemic landscape [1][11]. Group 1: Legal Disputes and Financial Challenges - Shenzhen Nucleic Acid Laboratory, under Zhang Hezi, has initiated lawsuits against various health departments for unpaid nucleic acid testing fees, indicating a significant issue with accounts receivable in the industry [1][2]. - The lawsuits primarily target health departments in smaller cities, revealing the complex payment issues within the third-party medical testing sector [1][2]. - A health department representative confirmed that the disputes are related to nucleic acid testing fees, which have been settled for relatively small amounts [1][2]. Group 2: Company Background and Growth - Zhang Hezi founded Shenzhen Nucleic Gene Technology Co., which controls Shenzhen Nucleic Acid Laboratory, and has been a major player in nucleic acid testing during the COVID-19 pandemic [1][5]. - The laboratory has been involved in testing across numerous cities, including Wuhan and Shenzhen, and claims to have conducted over 700 million tests during the pandemic [2][7]. - The rapid expansion of the laboratory was facilitated by a franchise model, attracting over 2,300 franchisees, and generating significant revenue during the peak of the pandemic [8]. Group 3: Regulatory Issues and Penalties - The laboratory has faced multiple penalties for issues such as falsifying test results and improper management of staff, indicating ongoing regulatory scrutiny [3][4]. - Specific incidents, such as the misreporting of test results in Lanzhou, have brought negative attention to the laboratory and its operations [3][4]. Group 4: Future Prospects and Business Direction - Following the decline in business post-pandemic, Zhang Hezi's companies are reportedly facing financial difficulties, with some being restricted from high consumption due to legal disputes [11]. - The company has attempted to diversify into real estate and pre-prepared food sectors, but the ongoing legal issues continue to overshadow its reputation [11]. - Despite ambitions for further expansion and IPO plans, the company has yet to achieve successful public listing due to stringent regulatory reviews [11].