Shengxiang Biology and its related parties plan to acquire equity in two companies to improve the industrial chain layout in the "AI + Healthcare" field

On the evening of March 15, Shengxiang Bio (688289) disclosed an announcement that it plans to jointly invest in two companies with its related party, Hunan Jinfurong Shengxiang Bio Equity Investment Fund Partnership (Limited Partnership) (hereinafter referred to as “the Fund”).

Among them, Shengxiang Bio intends to jointly establish Hunan Shengwei Huasi Biotechnology Co., Ltd. (hereinafter referred to as “Shengwei Huasi”) with the Fund, and will use it as the investment entity for the subsequent acquisition of 100% equity of Huasi Microbial Technology (Shenzhen) Co., Ltd. (hereinafter referred to as “Huasi Micro”). The listed company will contribute a total of 65.438 million yuan from its own funds, and the Fund will invest 28.049 million yuan. After the transaction is completed, Shengwei Huasi and Huasi Micro will be included in the company’s consolidated financial statements.

In addition, Shengxiang Bio also plans to jointly invest in Beijing Zheyuan Technology Co., Ltd. (hereinafter referred to as “Zheyuan Technology”) with the Fund. The listed company will invest 40 million yuan from its own funds, and the Fund will invest 50 million yuan. After the transfer of equity and capital increase transactions, the listed company will hold 4.02% of Zheyuan Technology’s equity, and the Fund will hold 5.02%.

According to the disclosure, Huasi Micro is a company that develops, produces, and sells in vitro diagnostic reagents and supporting instruments for human and veterinary use based on its proprietary infrared fluorescence enhancement technology.

The company’s existing products focus on immunofluorescence and have obtained more than ten invention and utility model patents in areas such as fluorescent dye molecule design, fluorescent nanobead preparation, immunofluorescence/immunodiagnostic supporting equipment and consumables, and detection applications. The products have obtained over 20 domestic NMPA registration certificates and more than 60 EU CE certifications, capable of covering common and frequently occurring diseases in clinical settings, as well as continuous monitoring and early warning detection for various chronic diseases in primary markets.

Zheyuan Technology is a platform-based company that empowers pharmaceutical innovation through digital life technology. Its core technology platform is a knowledge graph built from vast amounts of public literature and biomedical research data. Based on this knowledge graph and Zheyuan Technology’s AI platform, it conducts in-depth exploration of disease biological mechanisms and has the ability to digitally simulate (digital twin) specific diseases or populations. The company has obtained more than ten core invention patents related to data mining and analysis methods.

Shengxiang Bio believes that Zheyuan Technology’s capabilities are not only closely related to drug development but also to the development of in vitro diagnostic products, representing a foundational platform capability. Specifically, Zheyuan Technology’s technical platform can greatly assist the company in understanding the deep logic of diseases, populations, targets, and drugs, accelerating the discovery of drug targets and diagnostic markers, aiding in the development of complex disease diagnostic models, and improving the efficiency and success rate of clinical trials by precisely stratifying trial populations.

Huasi Micro can generate high synergy with the company’s business. At the technical level, its infrared fluorescence technology, as a foundational platform technology, has advantages such as high signal-to-noise ratio and good sensitivity, which can significantly enhance the performance of the company’s immunodiagnostic and molecular diagnostic products. Commercially, Huasi Micro has multiple approved immunofluorescence instruments and reagents, which are sold domestically and in overseas regions approved by domestic regulatory agencies. Its equipment is characterized by miniaturization and low cost, and many of its reagents are related to chronic disease management, aligning well with the company’s strategic layout in consumer and primary healthcare, and can complement the company’s existing infectious disease detection products.