Shanghai Rightongene Biotechnology Co. Ltd. A

Shanghai Xukang Gene Technology Co., Ltd. has withdrawn its IPO tutoring filing, ending its listing process after nearly three years of tutoring and eleven progress reports. Xukang Gene signed a listing tutoring agreement with Huatai United Securities on November 24, 2023, and had completed eleven tutoring sessions as of July 2026. The final two tutoring progress reports since 2026 show the company still has shortcomings in internal controls and compliance awareness among directors, supervisors, and senior management. Industry insiders believe that a genetic testing pharmaceutical company voluntarily exiting its IPO most likely reflects that its business model sustainability and profitability still need to be strengthened. Xukang Gene's listing difficulties are not an isolated case. Companies such as Shihui Gene, Annoroad, and Zhenhe Technology have also repeatedly stumbled on their listing paths. Since 2026, two other in vitro diagnostics-related companies, Tianjin Bioaosais Biotechnology Co., Ltd. and Dajia Medical Laboratory Co., Ltd., have also withdrawn their IPO tutoring filings. At the industry level, China's genetic testing market reached approximately 48.7 billion yuan in 2025, with a compound annual growth rate exceeding 30%, and is expected to surpass 100 billion yuan by 2030. However, BGI Genomics posted a net loss attributable to shareholders of 617 million yuan in 2025, Berry Genomics has been loss-making for three consecutive years, and Rightongene has been loss-making for a second consecutive year, leaving the industry overall in a pattern of rising revenue without rising profits.

Rightongene released its 2026 interim report on August 27. Affected by intensifying competition in the in-vitro diagnostics industry and stricter regulation, the company's revenue and profit both declined, and net profit attributable to the parent swung from profit to loss. During the reporting period, it achieved operating revenue of 79.84 million yuan, down 20.42% year on year. Net profit attributable to the parent was negative 12.34 million yuan, swinging from profit to loss year on year. Net profit attributable to the parent after deducting non-recurring items was negative 18.51 million yuan, with the loss widening. Net cash flow from operating activities was 12.71 million yuan, down 27.34% year on year, but still remained a net inflow. The decline in performance mainly stemmed from three factors. Industry pressure led to a reduction in operating revenue of approximately 20.49 million yuan. Credit impairment losses increased by 4.21 million yuan year on year. The subsidiary Yuanqi Biotech recognized goodwill impairment of 3.51 million yuan, combined with the parent company writing off deferred tax assets of 5.46 million yuan. Despite the overall revenue decline, the number of hospital admissions for core products continued to grow. Important products added 58 new hospital admissions, including 30 for leukemia products and 17 for lymphoma products. High-end quantitative testing products such as BCR-ABL P210 won bids at multiple top-tier hospitals. In addition, the company's research and development investment decreased by 38.74% year on year, mainly due to adjustments in research and development strategy and staff streamlining.