Hanwang Technology Injects USD3 Million Into DNA Testing Firm
Dou Shicong
DATE:  Aug 02 2017
/ SOURCE:  Yicai
Hanwang Technology Injects USD3 Million Into DNA Testing Firm Hanwang Technology Injects USD3 Million Into DNA Testing Firm

(Yicai Global) Aug. 2 -- Hanan Technology Co. [SHE:002362], a Beijing-based writing recognition company, plans to pump USD2.97 (CNY20 million) into Chengdu 23Mofang Biotechnology Co., a biotech firm in Chengdu in China's southwestern Sichuan province specializing in genetic testing technology.

Hanwang will use its own funds to purchase existing shares and new shares in 23Mofang and will hold an 8.74 percent stake after the investment, the company said in a statement yesterday.

The deal constitutes a related-party transaction, since Beijing Hanwang Qichuang Investment Management, a limited partnership controlled by one of the company's directors, Liu Qiutong, already owns a 4.07 percent stake in the target firm.

23Mofang's deoxyribonucleic acid (DNA) testing products are mostly priced below CNY1,000, and the company possesses professional databases, a biological laboratory and a team of genetics specialists. The firm offers DNA testing reports containing information on parentage, genetic risks, genetic traits, rare genetic diseases, fitness, drug responses and nutritional needs, per the statement.

The deal marks an important move in Hanwang's business expansion into the artificial intelligence and Big Data-based asset management technology businesses, per the statement. Rapid advances in DNA testing technology have made genetic testing services affordable for the public, and 23Mofang is the leader in China's DNA testing market.

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Keywords:   Hanwang,Genetic Testing,Investment