The third-quarter net profit of Hotgen increased by more than 11 times

In the evening of October 24, Beijing Hotgen Biotech Co., Ltd. (stock code: 688068) released its third quarter report for 2022. In the third quarter, Hotgen's revenue and net profit continued to jump, achieving CNY 963 million revenue with a year-on-year increase of 391.95%; the net profit attributable to the parent was CNY 287 million, with an increase of 1,109% year-on-year.

During the reporting period, Hotgen increased its R&D expenditures. Its R&D expenditures were CNY 56.49 million with 152.78% increase year-on-year in the third quarter, the company's accumulated R&D expenditures reached CNY 138 million yuanduring 2022.

Hotgen adheres to the market orientation and focuses on the in vitro diagnostics.

While continuing the research and development of COVID-19 and other major infectious disease detection products,the company has made efforts in the early screening and diagnosis of hepatitis and liver cancer, and actively expands sugar chain exosomes and DNA methylation-based liquid biopsy early tumor screening technologies based on core independent intellectual property rights to create a multi-omics screening solution for liver cancer.

At this stage, Hotgen has taken the lead in the field of early diagnosis of hepatitis and liver cancer. In the first half of this year, its dominant product, hepatitis and liver cancer detection reagents, achieved CNY 36.2474 million income with a year-on-year increase of 42.69%. The scale of early screening products for liver cancer has begun to take shape, and it is expected to grow into another performance growth point for the company.

From pre-diagnosis to post-treatment, Hotgen has increased its R&D investment in the field of biopharmaceuticals during the year to further strengthen the company's advantages in the development of the entire industry chain. The company accelerates the research on cutting-edge innovative technologies in the field of biopharmaceuticals such as antibody drugs, live bacteria drugs, and exosome drugs. During the reporting period, Hotgen has invested a total of CNY 138 million in research and development expenses, catching up with the level of last year. The research and development investment in the third quarter was CNY 56 million, which create a new record for the same period.