Stock price and performance are under dual pressure; Sannuo Bio continuously steps in to support the market!

After the market close on March 27, the leading company in the blood glucose monitoring sector, Sanon Biological, issued two separate share repurchase-related announcements in quick succession. It also rolled out a new round of share repurchase plan and adjusted the intended use of existing repurchased shares. Combined with the management’s earlier share-buying actions, a series of measures aimed at managing market value, as the reporter of The Daily Economic News (hereinafter referred to as the “Daily Economic News reporter”) found, was driven by the dual pressure of the company’s stock price remaining weak and its performance declining.

Repurchase in succession + CEO increases stake: multiple measures by Sanon Biological implemented in a flurry

According to the company’s announcements, after the market close on March 27, Sanon Biological released a new round of repurchase plan. It plans to use its own funds or raised funds of RMB 150 million to RMB 300 million to repurchase the company’s shares, and all of them will be used for cancellation and capital reduction. The expected number of shares to be repurchased is 6 million to 12 million shares, accounting for about 1.07% to 2.14% of the company’s total share capital. The upper limit of the repurchase price is RMB 25 per share, which is a premium of about 58.83% over the closing price of RMB 15.74 on the announcement date. The company stated that this repurchase is based on confidence in the company’s future development prospects and recognition of its long-term value. Taking into account the company’s current business situation, financial position, and future profitability, it fully considers the recent performance of the company’s stock in the secondary market. To safeguard the interests of a broad range of investors, strengthen investor confidence, and promote the company’s long-term, healthy, and stable development.

The Daily Economic News reporter noted that on the same day it released the above repurchase plan, the company announced an adjustment to the intended use of its existing repurchased shares. The announcement shows that Sanon Biological will change the intended use of approximately 3.4215 million shares it completed repurchasing in August 2024 from “to be used for an employee share ownership plan or equity incentives” to “to be used for cancellation and capital reduction.” Under relevant regulations, if repurchased shares are used to implement an employee share ownership plan or equity incentives, they must be implemented within three years after the repurchase is completed; any portion not implemented within the deadline will be legally cancelled. At present, there is still approximately 1 year and 4 months left before the three-year deadline in the above regulations. Regarding this early change of intended use, the company said it aims to protect investors’ interests and enhance market confidence.

What is noteworthy is that Sanon Biological completed the previous round of repurchases at the full limit just in mid-February this year. Previously, the company planned to repurchase RMB 150 million to RMB 300 million worth of shares for an employee share ownership plan, equity incentives, or conversion of convertible bonds. In the end, by February 12 of this year, it had cumulatively repurchased 15.7553 million shares, representing 2.81% of the company’s total share capital. The total transaction amount was RMB 300 million, fully completing the repurchase plan.

In addition to repurchases in succession, the company’s management also stepped in to increase its holdings. On January 29, Li Xin (the newly appointed general manager and vice chairman), increased his stake with his own funds by 571,800 shares, with a total amount of about RMB 10.1805 million (excluding transaction taxes and fees). This represents 0.10% of the company’s total share capital. As for the reasons for the increase, the announcement stated that it was based on confidence in the company’s future sustainable and stable development and recognition of the long-term investment value of the company. Public information shows that Li Xin is the daughter of Li Shaobo, the company’s controlling shareholder and actual controller. She has served as the company’s vice chairman since December 2022, and she has served as general manager since December 2025.

The stock price has suffered its largest drop in nearly three years, falling by more than 50%; 2025 performance is expected to decline sharply

The Daily Economic News reporter noted that behind this flurry of repurchases and increases in holdings, Sanon Biological is facing the dual pressures of the stock price remaining persistently weak and its 2025 performance declining sharply.

In the secondary market, after the company’s stock price hit a high of RMB 35.12 intraday on October 8, 2024, it continued to trade in a downward range. On March 27 this year, when the company released its new round of repurchase plan, the intraday price reached a new low in nearly three years of RMB 15.3. Based on this, the stock price’s maximum decline over the past three years is approximately 56.44%. Supported by this positive news from the repurchase, on March 30 the company’s stock price opened up by more than 5%; it then surged and fell back, and ultimately closed at RMB 16.14. The stock rose 2.54% on the day, with a total market capitalization of RMB 9.043 billion.

Performance is also under clear pressure. On January 28, Sanon Biological released its 2025 annual performance forecast. It expected to achieve a net profit attributable to shareholders of RMB 85 million to RMB 127.5 million, down 73.95% year over year from RMB 326 million in 2024, representing RMB 60.92 million to RMB 60.92 million; it also expected non-recurring profit and loss adjusted net profit of RMB 45 million to RMB 67.5 million, down 84.73% year over year to RMB 77.09 million. This indicates a significant decline in performance.

According to the company’s third-quarter report, as of the first three quarters of 2025, net profit attributable to shareholders was RMB 211 million, down 17.36% year over year. Why would net profit in 2025 be lower than the profitability in the first three quarters of 2025? For the company’s large fluctuations in performance, it attributes the main reasons to four points: (1) it booked goodwill impairment provisions of RMB 130 million to RMB 170 million for its wholly owned subsidiary, PTS; (2) its U.S. subsidiary, THI, paid settlement costs to Roche of USD 19 million, which is expected to impact the company’s net profit attributable to shareholders in 2025 by RMB 74.63 million; (3) the company has continued to push the digital transformation of diabetes management, increased the launch of CGM and BGM new products, and the product-structure adjustments have had a certain impact on the overall gross margin of blood glucose monitoring products, while market expense spending has further increased; and (4) non-recurring gains and losses have risen compared with 2024.

Overall, faced with the dual pressures of a continuously declining stock price and a performance downturn, Sanon Biological has used the “repurchase-and-cancel” measures in succession, together with management’s increased holdings, as a set of moves to support the share price. However, on the platform of East Money Interactive (互动易), several investors have raised questions: the company has introduced multiple measures to stabilize the stock price, but the stock price has not yet visibly recovered. Does the company have more systematic and stronger market value management measures? On March 23, the company responded that fluctuations in the stock price in the secondary market are comprehensively affected by multiple factors including macroeconomic conditions, industry policies, market sentiment, and the company’s business operations. The company has delivered confidence in its long-term value through measures such as share repurchases and management’s increased holdings. The company will continue to focus on its core business, and through measures such as improving operating performance, optimizing investor return mechanisms, and strengthening communication, it will promote the convergence of market value and intrinsic value.

As for the company advancing its global digital strategy with CGM as its core, multiple investors have also asked when it can translate into revenue contribution. In a response dated March 2, the company said its digital management ecosystem is centered on “bio-sensing + artificial intelligence + healthcare.” It is currently in the stage of user accumulation, service optimization, and business model exploration. As of now, in terms of interconnectivity for some products with mainstream ecosystem platforms such as Huawei HarmonyOS and Ant Arofo (蚂蚁阿福), it can reach a broader group of users. It needs to be explained that the revenue contribution of the digital management ecosystem relies on accumulating user scale, cultivating paying habits, improving the service system, and deepening ecosystem cooperation; it is part of the company’s long-term strategic layout.

According to public information, Sanon Biological is a leading manufacturer in China of blood glucose monitoring and blood lipid testing medical devices, and it is the world’s fourth-largest blood glucose meter company. The company’s blood glucose testing products hold more than 50% of the domestic retail market share, with more than 25 million global users. Its products and services cover 187 countries and regions. In 2023, Sanon Aikan (三诺爱看) continuous glucose monitoring systems (CGMs) under the company were approved for listing, becoming the world’s first CGM product that applies third-generation glucose sensor manufacturing technology. The second-generation CGM obtained a registration certificate for domestic Class III medical devices on December 13, 2024, and started being sold in the domestic market in 2025.

The Daily Economic News