FAST NEWS: Yidu Tech CEO Resigns, Replaced by Husband

The latest: Healthcare data company Yidu Tech Inc. (2158.HK) announced a series of leadership changes during the Wednesday midday trading break, with Gong Yingying resigning as CEO. She was replaced by her husband, Xu Jiming. Feng Xiaoying also replaced Yang Jing as CFO, executive director and authorized representative, and Yang resigned as president.

Looking up: Xu Jiming, who will take over as CEO, will lead and manage the company’s life science solutions business. He has more than a decade of experience in search engine technology, big data and artificial intelligence, having worked for technology giants like Alibaba, Baidu and Gaode Map.

Take Note: The sudden change in several core management positions, and the passing of the CEO title from wife to husband, may cause investors to worry about the company’s governance.

Digging Deeper: Yidu was listed in Hong Kong in 2021, banking on the then-hot “Internet+Medical” concept to lure investors. Its shares once soared as much as 165% above their IPO price. But they plunged more than 90% last year from their peak in 2021 as investors worried about potential negative impact on the company from China’s growing focus on data security and personal information protection. The company’s revenue has grown steadily since its inception in 2014, even though Yidu has yet to make a profit. Its flagship product, YiduCore, has processed and analyzed more than 3 billion medical records from more than 700 million patients as of the end of September last year. The company’s business potential is expected to remain strong as China’s population ages and the government tries to give people better access to high quality healthcare services.

Market Reaction: After surging 7.9% on Wednesday, Yidu Tech continued its upward trend in early Thursday trading and closed up 7.7% at HK$7.69. The stock now trades in the middle of its 52-week range.

Translation by Jony Ho

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