On May 18, Yunkang Group was listed on Hong Kong Exchanges and Clearing Limited (HKEX), stock code: 2325.HK. At press time, it opened down over 10% with a total market capitalisation of approximately HK$4.3 billion.

From 2018 to 2021, Yunkang Group's revenue will be CNY 596 million, CNY 678 million, CNY 1.2 billion and CNY 1.697 billion respectively. In terms of business composition, the largest share of revenue is in diagnostic outsourcing services.

With the outbreak of the COVID-19 in 2020, a large increase in supplies and demand for diagnostic tests for infectious diseases ensued, especially for nucleic acid tests for COVID-19, which also led to an increase in demand for the Yun Kang Group's diagnostic outsourcing services, with economies of scale leading to higher gross margins. During the reporting period, the overall gross profit margin of the Yunkang Group was 40.3%, 44.1%, 54.6% and 53.0% respectively.

It is noteworthy that the largest supplier of YunKang Group is Daan Gene Co., Ltd., the second largest shareholder of the company.

In terms of raw material supply, the main raw materials of the Yunkang Group are test kits, raw materials and machinery and equipment. From 2018 to 2021, YunKang Group's purchases from Daan Gene Group will be CNY 80.1 million, CNY 52.4 million, CNY 81.9 million and CNY 227 million respectively, accounting for 15.4%, 9.9%, 11.7% and 22.1% of the total purchases in the same period.

Daan Genetics announced in the evening of May 17 that the company's shareholding company, YunKang Group, intends to be listed on the main board of the Hong Kong Stock Exchange on May 18. Yun Kang Group is a participating grandchild of Daan Gene, and Daan International, a wholly-owned subsidiary of Daan Gene, holds 46.96% of the equity of Yun Kang Group.

About YunKang

Yunkang Group is a medical operation service provider in China, which started to provide standardized medical diagnostic services to medical institutions at all levels as early as 2008. Leveraging its own professional diagnostic capabilities and the nationwide service network of integrated healthcare systems, Yunkang has gradually grown to become a medical operation service platform with a growing menu of over 2,000 tests and over 50 million diagnostic tests performed in 2021.

As one of the five largest medical operation service providers in China in terms of revenue in 2020, we have three major business lines, namely diagnostic testing services for medical institution alliances, diagnostic outsourcing services and diagnostic testing services for non-medical institution clients. Yunkang has established six major operating modules and seven technology platforms as well as six independent clinical laboratories locating in key provinces and cities across the country including Guangzhou, Chengdu, Shanghai, Hefei, Kunming and Nanchang. Besides, Yunkang has the largest number of independent clinical laboratories in China that hold both ISO15189 and CAP certifications with over 1450 medical technicians as of April 25, 2022. With our accurate diagnostic capabilities, we have been providing comprehensive and high-quality clinical diagnostic services to collaborative hospitals long before.