Key Takeaways:
The company's core business is recovering from a post-pandemic slump, with gross margin rising to 68.5% in the first half, although net losses persist
With cash flow tight, Geneplus has turned to the Hong Kong IPO market to help fund research into improved diagnostics and AI-enabled medical care
By Lee Shih Ta
A biotech specializing in disease diagnostics and tailored treatments is about to test the Hong Kong market's interest in AI-focused healthcare IPOs.
Geneplus Technology (Shaoxing) Co. Ltd. provides genetic testing tools for cancer and other conditions, as well as sequencing services and biomarker analysis drawing on a host of scientific disciplines.
Its history sheds light on the evolution of China's precision medicine sector over the past decade, as new technologies have enabled individually tailored treatments and health management strategies. According to its listing application, the company began in 2015 as a provider of gene sequencing and analysis services for medical research institutions and clinical research teams.
At a time when precision medicine was still considered a cutting-edge concept, the company launched a technology platform and gradually expanded its research expertise across scientific fields such as genomics and bioinformatics.
When the Covid pandemic broke out in 2020, Geneplus rapidly scaled up its virus testing services, driving revenue to a peak of nearly 1.82 billion yuan ($260 million) in 2022 and generating an annual profit of 372 million yuan. However, the earnings spike did not represent an operating baseline.
As pandemic-related demand faded in 2023, Geneplus had to face a more challenging environment. Revenue ...
