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On July 23, Ruiang Gene (688217) hit a 20cm limit down, and its stock price hit a new low since its listing. According to the news, four senior executives of the company, including Xiong Hui and Xiong Jun, the actual controllers of Ruiang Gene, were taken compulsory measures. For Ruiang Gene, whose performance continued to decline and stock price continued to fall, this news can be said to be "adding insult to injury."

"20cm" limit down

On July 23, Ruian Gene opened low and continued to fall, eventually closing at the limit down, down 19.98%.

According to the trading data, on July 23, Ruiang Gene opened 16.19% lower at 15.69 yuan per share. Shortly after the opening, Ruiang Gene's stock price fell to the limit and maintained the limit until the close. As of the close of July 23, Ruiang Gene reported 14.98 yuan per share, a drop of 19.98%.

On the news front, on the evening of July 22, Ruian Gene announced that criminal coercive measures had been taken against the company's actual controllers, siblings Xiong Hui and Xiong Jun, and two deputy general managers.

Specifically, the company received notices from the family of Xiong Hui, the actual controller, chairman and general manager, and core technical personnel; the family of Xiong Jun, the actual controller, director and deputy general manager; the family of He Junyan, the deputy general manager; and the family of Xue Yuwei, the deputy general manager. Currently, Xiong Hui, Xiong Jun, and Xue Yuwei have been placed under residential surveillance at a designated location by the public security organs for suspected illegal business operations. He Junyan has been taken into criminal detention by the public security organs for suspected illegal business operations. Relevant matters are still under further investigation.

Lu Dingliang, a lawyer at Beijing Jingshi Law Firm, told Beijing Business Daily that both criminal detention and residential surveillance are compulsory measures in criminal proceedings, but there are many differences between them. Criminal detention refers to detaining criminal suspects and defendants in a detention center, completely depriving them of their personal freedom. This is a relatively severe compulsory measure. Residential surveillance is relatively mild and does not completely deprive criminal suspects and defendants of their personal freedom, but it does restrict their freedom of movement to a certain extent.

Ruiang Gene said that the company held a board meeting on July 22. After deliberation, Gao Shangxian, the actual controller and director of the company, will act as the legal representative, chairman and general manager of the company. At present, the company's daily operations are normal. The company will continue to pay attention to the progress of the above matters and strictly comply with the provisions and requirements of relevant laws and regulations to fulfill its information disclosure obligations in a timely manner.

On July 23, a Beijing Business Daily reporter called the secretary's office of Ruiang Gene to learn about the specific situation. Regarding whether the suspected illegal operation of the relevant personnel involved the company, the company staff said they had no comment. The staff member said that the company's current production and operation are normal, and everything is subject to the company's announcement.

According to the data, Xiong Hui is the founder of the company, with a direct shareholding ratio of 18.22%. Xiong Jun is Xiong Hui's younger brother, and has served as a director and deputy general manager of Ruian Gene since January 2015. Xue Yuwei and He Junyan have served as deputy general managers of the company since June 2023 and April 2023, respectively.

Both performance and stock price are not ideal

Behind the compulsory measures taken against several senior executives, Ruian Gene's stock price and performance are not ideal.

On July 23, the stock price of Ruiang Gene, which fell sharply, hit a record low. According to Oriental Fortune, after the adjustment, from May 17, 2021 (the first day of listing) to July 23, 2024, the stock price of Ruiang Gene fell by 84.04%. The company's issue price is 18.42 yuan per share, which is currently below the issue price.

According to the information, Ruiang Gene is a life science company that focuses on the field of tumors, has its own brand of testing instruments, testing reagents and third-party laboratories, and mainly provides accurate detection of genes and antigens for patients with blood diseases (leukemia, lymphoma), solid tumors (lung cancer, colorectal cancer, melanoma, etc.) and infectious diseases (hepatitis B, rubella, herpes simplex, etc.). During the epidemic, Ruiang Gene also undertook the new crown testing business.

In May 2021, Ruiang Gene landed on the Science and Technology Innovation Board. In the year of listing, Ruiang Gene's revenue and net profit both increased. However, in the second year after listing, Ruiang Gene's net profit declined. In 2023, the company's net profit decline further increased, and at the same time, there was a decline in revenue. Financial data shows that from 2021 to 2023, the company's operating income was approximately 291 million yuan, 424 million yuan, and 258 million yuan, respectively; the corresponding attributable net profits were approximately 47.33 million yuan, 40.47 million yuan, and 7.931 million yuan, respectively.

In the first quarter of this year, Ruian Gene achieved operating income of approximately RMB 64.19 million, a year-on-year increase of 12.84%; the corresponding attributable net profit was approximately RMB 533,200, a year-on-year decrease of 58.7%.

Beijing Business Daily reporter Ding Ning