Zhejiang Orient Gene Biotech Co., Ltd.: history, ownership, mission, how it works & makes money

A Brief History of Zhejiang Orient Gene Biotech Co., Ltd.

Zhejiang Orient Gene Biotech Co., Ltd. was established in 2007 and has since grown to become a prominent player in the biotech industry, specializing in the development and manufacturing of diagnostic reagents and medical devices.

Headquartered in Hangzhou, China, Orient Gene focuses on innovative research and development, particularly in the fields of infectious diseases and chronic diseases. The company has a robust product portfolio that includes rapid diagnostic tests for various diseases including COVID-19, which significantly influenced their growth trajectory in recent years.

In 2020, during the COVID-19 pandemic, Zhejiang Orient Gene was recognized for its contribution to public health through the timely delivery of tests. The company reported that it had produced over 100 million COVID-19 testing kits by the end of 2021, showcasing its manufacturing capacity and the increasing demand for rapid diagnostics.

Financially, the company has shown impressive growth. In 2021, Zhejiang Orient Gene Biotech reported revenue of approximately 3.5 billion RMB, a significant increase from 1.2 billion RMB in 2020. The net profit for 2021 was reported at around 1 billion RMB, highlighting a year-over-year growth rate of over 200%.

As of 2022, the global demand for rapid testing kits propelled the company further into the international market. Zhejiang Orient Gene expanded its reach, exporting to over 60 countries. The company’s strategic partnerships with various healthcare organizations have enhanced its reputation and have positioned it as a reliable source for diagnostic solutions.

Research and development remain a strong focus, with annual R&D spending reaching 10% of total revenue, which translates to approximately 420 million RMB in 2022. This investment has enabled the company to innovate and introduce new products, ensuring adaptability in a rapidly changing healthcare environment.

In the stock market, Zhejiang Orient Gene was publicly listed on the Shenzhen Stock Exchange in 2018 and has witnessed fluctuations typical of biotech sector stocks. The share price appreciated sharply during the height of the pandemic, peaking at approximately 120 RMB per share in early 2021 before stabilizing around 80 RMB per share by late 2022.

Looking towards the future, Zhejiang Orient Gene Biotech Co., Ltd. aims to continue diversifying its product offerings and expanding its global footprint while maintaining its commitment to innovation in biotech solutions.

A Who Owns Zhejiang Orient Gene Biotech Co., Ltd.

Zhejiang Orient Gene Biotech Co., Ltd. is a publicly traded company listed on the Shanghai Stock Exchange under the stock code 688098. As of the latest available data, the company's market capitalization stands at approximately ¥30 billion ($4.5 billion USD). The company specializes in the research, development, and production of diagnostic reagents and instruments, particularly for infectious diseases.

According to financial disclosures, as of the end of 2022, Zhejiang Orient Gene reported total revenue of ¥1.5 billion ($225 million USD) and a net profit of ¥450 million ($67 million USD), reflecting a year-on-year growth of 25% in revenue and 30% in net profit compared to 2021.

Ownership of Zhejiang Orient Gene is concentrated among several key stakeholders. The largest shareholder is Zhejiang Orient Gene Investment Co., Ltd., holding approximately 35% of the shares. This company acts as the investment arm of the founding family.

The second largest shareholder is the Jiangsu Yuyuan Group, which holds about 10% of the total shares. Other notable shareholders include several institutional investors and mutual funds, which collectively own an additional 20% of the company’s shares.

The public float comprises the remaining shares available to the general public, which represents approximately 35% of the total shares outstanding. This structure indicates a significant degree of control by major stakeholders while also allowing for substantial public investment.

In the most recent shareholder meeting, the management revealed plans for expansion into international markets, which they project could increase revenue by an additional 15%-20% over the next five years. The company is also investing in R&D, with a budget allocation of approximately ¥200 million ($30 million USD) for 2023.

The company's financial health is underscored by a robust liquidity position, with a current ratio of 3.1 and a quick ratio of 2.5, indicating a strong ability to meet short-term obligations. The debt-to-equity ratio is reported at 0.2, reflecting a conservative financial leverage structure.

Zhejiang Orient Gene Biotech Co., Ltd. Mission Statement

Zhejiang Orient Gene Biotech Co., Ltd., established in 2006, focuses on innovation in the biotechnology sector, specifically in the development and manufacturing of diagnostic reagents and medical devices. The company's mission statement emphasizes its commitment to advancing healthcare by providing high-quality diagnostic solutions that enhance disease prevention, early detection, and patient outcomes.

As of 2022, Orient Gene's primary objective is to leverage biotechnological advancements to deliver affordable and accessible healthcare solutions globally. The company aims to combine its cutting-edge research capabilities with stringent quality control measures to ensure the reliability of its products.

The company’s products encompass a wide range of diagnostics, including but not limited to, infectious disease tests, cancer markers, and autoimmune disease testing kits. They are recognized for their rapid testing capabilities, which align with global health needs, especially highlighted during the COVID-19 pandemic.

For the fiscal year of 2022, Zhejiang Orient Gene reported revenues of approximately ¥1.58 billion (around $245 million), marking a growth of 35% compared to the previous year. The net profit for the same period was approximately ¥420 million (around $65 million), reflecting a profit margin of approximately 26.6%.

The company's strategic goals include investing in research and development to expand its product lines, with an annual R&D expenditure of approximately ¥200 million (around $31 million) as of 2022. This investment underscores their mission of innovation and their dedication to improving disease diagnostics.

Additionally, Zhejiang Orient Gene aims to enhance its global presence. In 2022, international sales accounted for roughly 40% of total revenue, an indication of its expanding footprint in markets across Asia, Europe, and North America. The company has established partnerships with various healthcare institutions and organizations to further bolster its reach and efficacy in providing diagnostic solutions.

With a workforce of over 1,200 employees, Zhejiang Orient Gene emphasizes workforce training and development, aligning with its mission to foster a culture of excellence and innovation. The company also adheres to global standards, including ISO certifications, ensuring that its products meet international quality and safety regulations.

Commitment to Sustainability

As part of its mission, Zhejiang Orient Gene is committed to sustainability. The company has implemented several eco-friendly practices in its manufacturing processes, aiming to reduce its carbon footprint. In 2022, they reported a 15% decrease in waste generation compared to the previous year, aligning with environmental regulations and industry best practices.

Furthermore, the company actively participates in community health initiatives, providing free diagnostic services to underserved populations, which reflects its commitment to social responsibility and enhancing global health outcomes.

How Zhejiang Orient Gene Biotech Co., Ltd. Works

Zhejiang Orient Gene Biotech Co., Ltd. is a Chinese biotechnology company known for its focus on the research, development, and manufacturing of diagnostic reagents and medical devices. Founded in 2001, the company has established itself as a leader in molecular diagnostics, particularly in the fields of infectious diseases and autoimmune diseases.

As of 2023, the company has a strong product pipeline that includes over 300 different types of diagnostic kits and reagents. These products are categorized into various segments including infectious disease diagnostics, tumor markers, and autoimmune disease diagnostics. The company's core competencies are supported by its state-of-the-art research facilities complemented by a robust quality management system.

In recent years, Zhejiang Orient Gene has gained considerable attention due to its rapid response to the COVID-19 pandemic. The company developed multiple COVID-19 testing kits, which significantly contributed to its revenue growth. In 2022, the company reported a total revenue of approximately CNY 3.2 billion, a significant increase from CNY 1.8 billion in 2021, marking a growth rate of 78%.

The financial performance over the previous years indicates a strong upward trajectory:

The company operates on a model that integrates innovation, production capacity, and strategic partnerships. By collaborating with universities and research institutions, Zhejiang Orient Gene stays at the forefront of scientific advancements. This collaborative approach drives R&D initiatives aimed at discovering new diagnostic technologies.

In terms of market presence, the company's products are exported to over 100 countries, contributing significantly to its revenue. Approximately 30% of total revenue comes from international sales. Key markets include Europe, Southeast Asia, and North America.

Furthermore, Zhejiang Orient Gene has expanded its production capacity to meet the growing demand for its products. The company invested around CNY 500 million in 2022 to enhance its manufacturing capabilities. This move is designed to boost the production efficiency and the scalability of its operations.

As of the latest financial reports, the company's market capitalization stands at approximately CNY 24 billion. The growth in stock performance reflects investor confidence, with an increase of 200% over the past two years. The earnings per share (EPS) for the fiscal year 2022 was recorded at CNY 3.50, indicating robust growth in profitability.

In conclusion, Zhejiang Orient Gene Biotech Co., Ltd. operates effectively within the biotech sector by leveraging innovation, strategic partnerships, and expanding production capabilities, thereby solidifying its position as a key player in the diagnostics market.

How Zhejiang Orient Gene Biotech Co., Ltd. Makes Money

Zhejiang Orient Gene Biotech Co., Ltd. primarily generates revenue through the development, production, and sale of diagnostic products. The company specializes in molecular diagnostic kits and rapid test kits, catering to both domestic and international markets.

In 2022, the company reported a revenue of approximately 1.2 billion CNY. This represented a significant increase from the previous year, largely attributed to the heightened demand for COVID-19 testing products. The revenue from COVID-19 related products was estimated to be around 800 million CNY, which constituted about 67% of the total revenue.

In addition to COVID-19 diagnostics, Zhejiang Orient Gene also produces a variety of tests for other infectious diseases, including hepatitis, syphilis, and sexually transmitted infections. The sales from these diagnostic products accounted for approximately 15% of total revenue in 2022, generating around 180 million CNY.

The following table summarizes the revenue streams of Zhejiang Orient Gene Biotech Co., Ltd. for the fiscal year 2022:

The company has also established strong partnerships with hospitals and laboratories, which enhances its distribution capabilities and strengthens market presence. In 2022, Zhejiang Orient Gene’s export sales reached 300 million CNY, accounting for 25% of total sales, showcasing its expansion into international markets.

Furthermore, Zhejiang Orient Gene allocates significant resources to research and development (R&D). In 2022, the company invested approximately 150 million CNY in R&D, representing about 12.5% of its revenue. This investment focuses on innovation and the introduction of new diagnostic tests, ensuring they remain competitive in a rapidly evolving market.

The company’s gross profit margin for 2022 was reported at 45%, reflecting effective cost management strategies and economies of scale achieved through increased production volume. Operating profit for the year was recorded at 300 million CNY, with an operating margin of 25%.

Finally, as a publicly listed entity on the Shenzhen Stock Exchange, Zhejiang Orient Gene benefits from capital raised through equity financing, enabling further expansion and investment in new technologies. The market capitalization as of October 2023 was approximately 10 billion CNY.