Core Viewpoint - The sudden passing of Liu Zhonghua, a core founder and key executive of Shuoshi Biotechnology, raises concerns about the company's future amidst industry challenges and operational pressures [2][5][6] Company Overview - Shuoshi Biotechnology was founded in 2010, focusing on infectious disease testing and maternal and child health [5] - The company specializes in the research, production, and sales of in vitro diagnostic reagents and related testing instruments, adopting an integrated business model of "reagents + instruments + services" [5] Leadership and Contributions - Liu Zhonghua was a molecular biology expert and had a significant role in the company's development, serving as a technical director and vice president from 2010 to 2017, and as a board member since 2017 [5][6] - He voluntarily reduced his salary by 40% recently to support the company's operational efficiency [6] - Liu held 2.57% of the company's total shares, amounting to 2.15 million shares [5] Recent Company Performance - Shuoshi Biotechnology is currently facing performance pressures due to industry adjustments [6] - The company recently implemented voluntary salary reductions among its executives to optimize operational costs and improve management efficiency [6] Board Composition - Following Liu Zhonghua's passing, the board of directors has decreased from 9 to 8 members, which is still above the legal minimum but below the number stipulated in the company's articles of association [6] - The company plans to complete the board member replacement process in accordance with legal procedures [6]

Group 1 - The company, Shuoshi Biotechnology, announced the passing of its board member and vice president, Liu Zhonghua, due to sudden illness on September 12, 2025, at the age of 56 [1][3] - Liu Zhonghua was a core founder of Shuoshi Biotechnology and had recently voluntarily reduced his salary by 40% to support the company's operations [3][9] - The company focuses on the research, production, and sales of in vitro diagnostic products, particularly in the fields of infectious disease testing and maternal and child health [7][8] Group 2 - Liu Zhonghua held a Ph.D. from Xi'an Jiaotong University and was recognized as an expert in molecular biology, contributing significantly to the company's development [7][8] - Following Liu's passing, the board of directors will decrease from 9 to 8 members, which does not affect the normal operation of the board but is below the number stipulated in the company's articles of association [9] - The company plans to complete the board member replacement process in accordance with legal procedures and will fulfill its information disclosure obligations [9]

Core Viewpoint - The sudden passing of Liu Zhonghua, a core founder and key executive of Shuoshi Biological, raises concerns about the company's future operations and governance structure [1][6][7] Company Overview - Shuoshi Biological was founded in 2010, focusing on infectious disease testing and maternal and child health [5] - The company specializes in the research, production, and sales of in vitro diagnostic reagents and related testing instruments, adopting an integrated business model of "reagents + instruments + services" [5] Leadership and Contributions - Liu Zhonghua served as a technical director and vice president from August 2010 to March 2017, and as a board member from March 2011 to March 2017 [6] - He held the position of director, technical director, and vice president of the listed company since March 2017 [6] - Liu was recognized for his dedication to the development of diagnostic products related to infectious diseases and maternal and child health, receiving multiple honors including "Outstanding Communist Party Member of Jiangsu Province" and "National Model Worker" [6] Shareholding and Governance - Liu Zhonghua directly held 2.57% of the company's total shares, amounting to 2.15 million shares [6] - Following his passing, the board of directors decreased from 9 to 8 members, which is still above the legal minimum but below the number stipulated in the company's articles of association [7] - The company plans to complete the board member replacement process in accordance with legal procedures [7] Financial Context - The company is currently facing performance pressure due to industry adjustments [7] - In response to external pressures, the company's executives, including Liu Zhonghua, voluntarily reduced their salaries, with Liu's salary cut by 40% [7] - Liu's reported compensation for the previous year was 1.5162 million yuan [7]

Company Overview - Jiangsu Shuoshi Biological Technology Co., Ltd. is located at 837 Yaochedada, Taizhou, Jiangsu Province, established on April 12, 2010, and listed on December 5, 2019. The company specializes in the research, production, and sales of in vitro diagnostic reagents and related testing instruments [1] - The main business revenue composition includes: testing reagents 85.89%, purchased instruments and materials 7.19%, testing instruments 3.84%, testing services 2.24%, and others 0.84% [1] Stock Performance - On September 12, Shuoshi Biological's stock rose by 5.1%, reaching a price of 65.98 yuan per share, with a trading volume of 124 million yuan and a turnover rate of 2.29%. The total market capitalization is 5.534 billion yuan [1] Shareholder Information - Among the top ten circulating shareholders of Shuoshi Biological, one fund from Huaxia Fund holds a significant position. Huaxia Industry Prosperity Mixed Fund (003567) increased its holdings by 1.0079 million shares in the second quarter, totaling 2.2546 million shares, which accounts for 2.69% of the circulating shares. The estimated floating profit today is approximately 7.2148 million yuan [2] - Huaxia Industry Prosperity Mixed Fund (003567) was established on February 4, 2017, with a latest scale of 7.261 billion yuan. Year-to-date returns are 49.16%, ranking 881 out of 8174 in its category; the one-year return is 99.56%, ranking 463 out of 7981; and since inception, the return is 357.78% [2]

Core Viewpoint - The company is facing significant operational challenges, leading to a voluntary salary reduction among its senior management as a gesture of solidarity during tough times [2][4][5]. Group 1: Company Performance - In the first half of 2025, the company reported a revenue of 176 million, a year-on-year decrease of 1.05%, and a net profit attributable to shareholders of 3.99 million, down 86.35% [2][3]. - The decline in performance is attributed to two main factors: the impact of centralized procurement policies leading to price pressure on products, and an increase in the value-added tax rate for self-produced testing reagents to 13%, which reduced gross margins [3][6]. Group 2: Management Response - Eight senior executives, including the honorary chairman and the chairman, announced voluntary salary reductions ranging from 5% to 50%, effective from August 15, 2025 [2][4]. - The total pre-tax compensation for these executives exceeded 10 million prior to the salary cuts, indicating a significant financial commitment to support the company during its struggles [4][5]. Group 3: Industry Context - The in vitro diagnostic (IVD) industry is experiencing widespread challenges, with many companies facing profit declines or losses due to similar pressures from centralized procurement and fluctuating market demand [6][7]. - The company plans to focus on several strategic areas, including increasing R&D investment, enhancing smart manufacturing, and deepening internationalization, although immediate improvements are uncertain [6][7]. Group 4: Future Outlook - The company remains optimistic about its overseas business potential, although current contributions are small and significant growth is not expected in the short term [6][7]. - Industry experts suggest that technological upgrades and structural adjustments are essential for overcoming current challenges, with a shift towards precision and intelligent diagnostics anticipated in the future [7].

Core Viewpoint - The company, Shuoshi Biological, announced voluntary salary reductions for its executives in response to challenging market conditions and declining performance, reflecting a commitment to long-term development and cost efficiency [1][3]. Executive Salary Reduction - Eight executives, including the honorary chairman and the chairman, will see salary cuts ranging from 5% to 50%, with the honorary chairman's salary reduced by 50% and the chairman's by 50% as well [1]. - Five of the seven executives who voluntarily reduced their salaries had annual salaries exceeding 1 million yuan in 2024, with specific figures including 2.0643 million yuan for the honorary chairman and 2.4399 million yuan for the chairman [1]. Financial Performance - The company's revenue showed significant growth from 17.40 billion yuan in 2020 to 55.35 billion yuan in 2022, but it faced a drastic decline in 2023 with revenue dropping to 4.03 billion yuan and a net loss of 374 million yuan [3]. - For the first half of 2025, the company reported a revenue of 176 million yuan, a year-on-year decrease of 1.05%, and a net profit of 39.926 million yuan, down 86.35% compared to the previous year [3]. Dividend Distribution - Despite the decline in performance and executive salary cuts, the company approved a cash dividend of 3.4 yuan per 10 shares, totaling 285 million yuan, indicating a desire to reward investors while maintaining a healthy cash flow [4]. - The company emphasized its commitment to balancing dividends with future research and development investments, stating that technology innovation remains a core driver [4]. Market Position - As of August 28, the company's stock price was 63.92 yuan per share, with a total market capitalization of 5.316 billion yuan, reflecting its current market standing [5].

Core Viewpoint - The company, Shuoshi Biotechnology (688399.SH), announced that several executives voluntarily proposed salary reductions in response to ongoing industry challenges and to support long-term development [1][5]. Salary Reduction Details - The honorary chairman, Fang Yongsheng, and the chairman and general manager, Wang Guoqiang, will have their annual salaries reduced by 50% starting from August 15, 2025 [2]. - Other executives, including Liu Zhonghua (40% reduction), Hu Yuanyuan (40% reduction), and Zhou Guohui (40% reduction), will also see significant salary cuts, while the financial director and employee supervisors will have reductions of 10% and 5% respectively [2][3]. Executive Compensation Context - Among the seven executives who proposed salary cuts, five had annual salaries exceeding 1 million yuan in 2024, with Fang Yongsheng earning 2.0643 million yuan and Wang Guoqiang earning 2.4399 million yuan [3][4]. - The company previously had several executives with annual salaries exceeding 10 million yuan in 2021 and 2022 [4]. Financial Performance - The company has faced continuous operational pressure, with a reported revenue of 176 million yuan in the first half of 2025, a year-on-year decrease of 1.05%, and a net profit of 3.9926 million yuan, down 86.35% [7]. - Shuoshi Biotechnology has recorded net losses for two consecutive years, with revenues of approximately 403 million yuan and 350 million yuan in 2023 and 2024, respectively [7]. Dividend Distribution - Despite the decline in performance and executive salary reductions, the company plans to distribute a cash dividend of 2.85 billion yuan for the first half of 2025, reflecting a commitment to return value to shareholders [9]. - The company reported that as of June 30, the undistributed profits exceeded 2.4 billion yuan, allowing for the dividend distribution while maintaining a stable cash flow [9].

Core Viewpoint - Jiangsu Shuoshi Biotechnology Co., Ltd. announced voluntary salary reductions for its executives and board members to support operational cost optimization and enhance competitiveness amid challenging global economic conditions [1][3]. Salary Reduction Details - The honorary chairman, Fang Yongsheng, and the chairman and general manager, Wang Guoqiang, will have their annual salaries reduced by 50% starting from August 15, 2025 [2][3]. - Other executives, including Liu Zhonghua and Hu Tongyuan, will see a 40% reduction, while the financial director, Meng Yuanyuan, and employee supervisors will have reductions of 10% and 5%, respectively [2][3]. Company Performance Context - Shuoshi Biotechnology experienced significant revenue growth during the pandemic, with revenues soaring from 289 million yuan in 2019 to 5.535 billion yuan in 2022, but faced a dramatic decline in 2023 with revenues dropping to 403 million yuan, a 92.72% decrease year-over-year [4][5]. - The company reported a net loss of 374 million yuan in 2023, marking a 120.45% decline compared to the previous year [4][5]. Future Strategies - The company aims to continue optimizing operations and enhancing market competitiveness through cost reduction and efficiency improvement measures [3][4].

Core Viewpoint - The company, Shuoshi Biological (688399.SH), announced voluntary salary reductions for several executives, including a 50% cut for the honorary chairman and the chairman/general manager, in response to ongoing financial pressures and to demonstrate solidarity during challenging market conditions [1][5]. Salary Reduction Details - The honorary chairman, Fang Yongsheng, and the chairman/general manager, Wang Guoqiang, will have their salaries reduced by 50% starting from August 15, 2025 [2][3]. - Other executives, including Liu Zhonghua (director and deputy general manager), Hu Tongyuan (director, deputy general manager, and board secretary), and Zhou Guohui (deputy general manager), will see a 40% salary reduction [2][3]. - The financial director, Meng Yuanyuan, and employee supervisors, Jia Zhaoqiang and Gu Lina, will have their salaries reduced by 10% and 5%, respectively [2][3]. Financial Performance - The company has faced declining financial performance, with a reported revenue of 176 million yuan in the first half of 2025, a decrease of 1.05% year-on-year, and a net profit of 3.99 million yuan, down 86.35% [7]. - The company has experienced net losses for two consecutive years, with revenues of approximately 403 million yuan and 350 million yuan in 2023 and 2024, respectively, and corresponding net profits of -374 million yuan and -2 million yuan [7]. Dividend Distribution - Despite the salary cuts and declining performance, the company plans to distribute a cash dividend of 34.00 yuan per 10 shares, totaling 285 million yuan, reflecting a commitment to return value to shareholders [9]. - As of June 30, the parent company had over 2.4 billion yuan in undistributed profits, allowing for this dividend distribution while maintaining a stable cash flow [9].

Core Viewpoint - The company, Shuoshi Biotechnology, is implementing significant salary reductions for its top executives in response to ongoing financial challenges, including consecutive years of net losses and declining revenues [1][5][6]. Salary Adjustments - The honorary chairman, Fang Yongsheng, and the chairman and general manager, Wang Guoqiang, will have their salaries reduced by 50% starting from August 15, 2025 [2]. - Other executives, including Liu Zhonghua (40% reduction), Hu Yuanyuan (40% reduction), and Zhou Guohui (40% reduction), will also see significant salary cuts [2]. - The financial director, Meng Yuanyuan, will have a 10% salary reduction, while employee supervisors Jia Zhaoqiang and Gu Lina will see reductions of 10% and 5%, respectively [1][2]. Financial Performance - Shuoshi Biotechnology reported revenues of approximately 403 million yuan and 350 million yuan for 2023 and 2024, respectively, with corresponding net losses of approximately 374 million yuan and 2 million yuan [5]. - The company's half-year report for 2025 indicated a revenue of about 176 million yuan, a year-on-year decrease of 1.05%, and a net profit of approximately 399 million yuan, down 86.35% year-on-year [6][7]. - The decline in net profit is attributed to price pressures from national procurement policies in the in vitro diagnostics industry and changes in tax rates affecting product margins [7]. Business Overview - Shuoshi Biotechnology focuses on the research, production, and sales of in vitro diagnostic reagents and related testing instruments, expanding into in vitro testing services [8]. - The company operates an integrated business model that includes reagents, instruments, and services, supported by various modern biological technology platforms [8].