Core Viewpoint - Beijing Hotgen Biotech Co., Ltd. reported a decline in revenue for 2024, with a total revenue of 510.90 million yuan, a year-on-year decrease of 6.74%. However, excluding unconventional testing business, revenue increased by 23.10% [2][10]. Group 1: Main Business Performance - The company's main business includes in vitro diagnostic reagents and instruments. In 2024, instrument sales volume increased by 262.79%, and revenue from instruments grew by 289.79%, with a gross margin improvement of 17.61 percentage points [2][4]. - Revenue from reagent business decreased by 18.55%, but the gross margin increased by 5.94 percentage points [2][4]. - The company adopted a "linked sales" model for some instruments, which contributed to the revenue growth [2][4]. Group 2: Accounts Receivable - As of 2024, the company's accounts receivable balance was 96.09 million yuan, a year-on-year increase of 214%. The accounts receivable from subsidiaries, particularly from India, raised concerns due to a significant provision for bad debts [10][12]. - The company adjusted its credit policy, extending payment terms for core distributors from 3 months to 6-12 months, which contributed to the increase in accounts receivable [12][13]. Group 3: Inventory Write-down - The company recognized an inventory write-down of 29.11 million yuan in 2024, a 226% increase year-on-year, primarily related to raw materials [21][28]. - The write-down for raw materials accounted for 66% of the total write-down, with a significant portion of raw materials being over 2 years old [21][28]. Group 4: Fixed Assets - The company reported a significant increase in the purchase of testing instruments, totaling 178.29 million yuan in 2023 and 61.68 million yuan in 2024, with a corresponding increase in impairment losses [33][34]. - The company extended the depreciation period for certain stable-performing testing instruments from 5 years to 10 years, based on reliability testing and market demand [38][39].