800 Times Surging! Hotgen Biotechn Earns 1.6 billion Profit for the Half Year

On the evening of June 30, Beijing Hotgen Biotechn Co., Ltd. (hereinafter referred to as Hotgen) released a performance forecast for the half year of 2021, saying that it is expected to achieve a net profit of ￥1.38 billion yuan to 1.6 billion yuan attributable to the owners of the parent company in the half year of 2021. Compared with the same period of last year (statutory disclosure data), it will increase by about ￥1.378 billion yuan to about ￥1.598 billion yuan, with a year-on-year increase of 70546.05% to 81808.47%.

For the main reason for the change of performance, Hotgen said that in the first half of 2021, influenced by the continuous development of COVID-19 in Europe and the whole world, the New Coronavirus 2019n-CoV antigen detecting kit (anterior nasal cavity) and New Coronavirus 2019n-CoV antigen detecting kit (saliva) developed by the company were approved by the European Union CE certification for the two rapid detecting products of New Coronavirus antigen. In the first time, the company obtained the certification of BfArM for home free testing, which helped to meet the demand of anti-epidemic in Germany, resulting in the explosive growth of the company's foreign trade orders and the substantial growth of the company's business performance in the first half of 2021.

COVID-19 affected the company in the first half of 2020, with smaller operating performance (￥89 million revenue and ￥1.95 million net profit), resulting in a smaller base compared with the same period in 2021. On April 22, Hotgen released its first quarter report, saying that the company's revenue in the first quarter of 2021 was ￥1.228 billion yuan, up 3099.15% year on year. The net profit attributable to the parent company was ￥601 million yuan, a year-on-year increase of 117191.05%. In contrast, the net profit of Hotgen in the second quarter was about ￥700 million to ￥1 billion yuan, and the revenue was about ￥3 billion yuan, which did not exceed the market expectation.

At present, the vaccination rate in Europe is high, and the demand of antigen self-test market has been declining. From the current global epidemic situation, the newly increased infectors mainly spread in India, Brazil, Colombia, etc. which means the detection bonus of overseas seems to hit the peak.