Wondfo Biotech Completes RMB 720 Million Private Placement to Expand Operations and Accelerate Global IVD Leadership

VCBeat (WeChat ID: vcbeat) has learned that on April 21,Wondfo Biotech, China's Leading POCT Enterprise(Stock Code: 300482) has released its latest announcement, declaring the completion of its private placement issuance. The company issued 12.4331 million shares in this offering at an issue price of RMB 57.91 per share,FundraisingTotal amount: RMB 720 million, the issuance targets were Wang Jihua, Chairman of the Company, and Nanjing Fengtong Investment Center (Limited Partnership), which subscribed for RMB 220 million and RMB 500 million, respectively.

According to the announcement, the funds raised from the company’s private placement will be entirely allocated to the “Wanfu New Production Base Construction Project” and the “Information System Upgrade and Renovation Project.”This private placement will strengthen the Company’s capital base, expand its operational scale, and accelerate its transformation into a large multinational in vitro diagnostics (IVD) enterprise with international influence and market competitiveness. Meanwhile, it will enhance the Company’s informatization level and service capabilities, enabling refined management.

Currently, most domestic POCT companies are focused on specific niches, but Wondfo boasts a comprehensive product portfolio. Since its listing, the company has advanced through both in-house R&D and strategic acquisitions, thereby strengthening its presence across various sectors. Driven by new product development, technological accumulation, and external M&A activities, the company’s operational growth has reached an inflection point.

In 2017, Wondfo Biotech achieved an organic revenue growth of nearly 50%. On the profit side, driven by private placement and the integration of channel distributors, the net profit reached RMB 211 million in 2017, representing a year-on-year increase of 45.33%, with over 90% attributable to organic profits.

In addition, the company projected its net profit for the first quarter of 2018 to range from RMB 49.2005 million to RMB 56.2291 million, representing a year-on-year growth of 40%–60%. The primary drivers behind this anticipated performance improvement were the synergistic efforts in both domestic and overseas marketing, which fueled rapid revenue growth across all business segments at home and abroad, as well as an increasing sales proportion of high-margin quantitative products, leading to sustained enhancement in profitability.

Looking at the broader in vitro diagnostics (IVD) market, 80% of current clinical diagnostic information is derived from IVD tests. According to data from a report published by RNCOS, the global IVD market size was projected to reach $60.9 billion in 2016 and is expected to grow to $82.7 billion by 2022. Over the next six years, the global IVD market is anticipated to maintain a growth rate of 5.2%.

RNCOS also stated that the global POCT market has experienced rapid growth over the past five years. The global POCT market size was estimated at $20.2 billion in 2016 and is projected to reach $30 billion by 2022, maintaining a compound annual growth rate (CAGR) of 6.8% over the subsequent six years. This growth rate is expected to exceed the average growth rate of the global in vitro diagnostics (IVD) market during the same period.

Image source: Wondfo official website

Guangzhou Wondfo Biotech Co., Ltd. was established in 1992 with a registered capital of RMB 176 million. The company was listed on the ChiNext Board of the Shenzhen Stock Exchange on June 30, 2015, with a market capitalization exceeding RMB 15 billion. Dedicated to the research and development, manufacturing, and sales of point-of-care testing (POCT) products—including reagents and instruments—within the biomedical in vitro diagnosis (IVD) industry, the company provides customers with professional products and services for rapid diagnostics and chronic disease management.

Headquartered in Guangzhou Science City, the company occupies an area of 30 mu. Wondfo has established comprehensive technology platforms, including colloidal gold and latex-labeled chromatography, fluorescent-labeled quantitative detection, dry chemistry and electrochemical quantitative detection, and molecular diagnostics. Its product portfolio covers infectious diseases, pregnancy testing, cardiovascular diseases, drug abuse, oncology, and metabolic disorders. Over one hundred products are utilized across various healthcare settings, including hospitals at all levels, community clinics, health centers, OTC pharmacies, as well as specialized channels such as disease control centers, public security bureaus, and the military.

The company has established a 33,000-square-meter industrialization base for rapid diagnostic products, equipped with a 5,000-square-meter clean production workshop and rapid diagnostic reagent production lines featuring internationally advanced technology, achieving a daily output of 1.5 million test kits. The company has set up subsidiaries and R&D centers in the United States, and marketing centers in Germany, Kenya, and Indonesia. It has established stable cooperative relationships with European retail giant BOOTS, Asian retail giant WATSONS, the renowned Southern European retail chain SONAE, as well as domestic pharmacy chains such as Nepstar, Jinxiang Pharmacy, and Laobaixing Pharmacy. The company provides product solutions and technical support to customers in more than 180 countries and regions worldwide.

In March this year, Wondfo Biotech announced that the company would develop towards the ABC strategy (Artificial Intelligence (AI), Big Data, Cloud Computing) + ecosystem model, closely following national policies to promote the construction of medical consortia, regional testing centers, and chest pain centers, thereby supporting tiered diagnosis and treatment.

Meanwhile, the company plans to establish R&D laboratories in the United States, Japan, the United Kingdom, Shenzhen, and other locations, driving its products toward greater intelligence and portability.

Reference data: Wondfo Biotech announcements, Wondfo Biotech official website, CACLP In Vitro Diagnostics News, etc.