BGI Genomics, the industry leader driven by the new productive forces.

Driven by the new productive forces of the era, BGI Genomics has not only become a leader in industry innovation, but also continues to be at the forefront of technological innovation with the new productive forces as its core driving force. Through continuous exploration and breakthroughs, BGI Genomics is achieving rapid development and wide-ranging influence at an unprecedented speed worldwide, further consolidating its position as a leading enterprise in the field of gene technology.

Recently, BGI Genomics disclosed its financial report for the first half of 2024. In the first half of the year, BGI Genomics achieved a revenue of 1.871 billion yuan with a net income attributable to shareholders of 18.1998 million yuan.

The second growth curve is strong, with deep implementation of the people's livelihood strategy.

Although BGI Genomics' semi-annual report did not present dazzling overall performance, a detailed analysis of its business composition still reveals highlights and bullish signals. Among the five core business sectors, the performance of reproductive health and tumor and chronic disease prevention and control areas is particularly outstanding, achieving year-on-year revenue growth of 7.19% and 13.69%, respectively, which is particularly commendable in an environment where the industry as a whole is under downward pressure.

In the field of reproductive health, despite the continuous decline in the newborn birth rate, BGI Genomics has achieved contrarian growth in its business due to its deep accumulation and forward-looking layout in this field. The company has not only built a three-level birth defect prevention and control system covering pre-marital, pre-pregnancy, pregnancy, newborn, and children's full cycle, but also successfully undertook the promotion of prenatal screening and birth defect testing services using non-invasive DNA testing for peripheral blood of pregnant women in multiple cities such as Guangzhou and Hangzhou, effectively promoting the prevention and reduction of birth defects, further increasing its business penetration rate, and achieving steady growth in the population's contracyclical cycle.

At the same time, BGI Genomics has continued its growth momentum from last year in the field of tumor and chronic disease prevention and control. A series of cutting-edge innovative products such as colorectal cancer testing, HPV testing, and Alzheimer's disease risk gene testing, combined with years of channel advantages, have achieved rapid scale-up. On the other hand, through people's livelihood projects, the company has also promoted digestive system tumor and "four high" testing services in cities such as Harbin, not only improving the health level of local residents, but also driving rapid business growth.

In last year's annual report, the company clearly stated that it will continue to develop new gene health screening people's livelihood projects across the country. Such strategic choices can greatly leverage the advantages of BGI Genomics. On the one hand, it is based on the technical advantages of domestic independent sequencing platforms, and on the other hand, the company's product line is rich enough, covering reproductive health, tumor screening, and chronic disease prevention and control, all of which are BGI Genomics' advantageous projects. At the same time, the scale effect of large sample testing can greatly reduce the cost of testing services and solve the problem of testing accessibility.

The strong growth trend of the two main business operations can be clearly seen in this semi-annual report. With the implementation of more people's livelihood testing projects nationwide, BGI Genomics will be able to further unleash its inherent advantages and accelerate market penetration.

Driven by research and development, the company is making comprehensive efforts on the product side.

Another highlight of this semi-annual report is the research and development aspect. The company's R&D investment in the first half of the year reached 0.277 billion yuan, accounting for 14.82% of revenue, leading the industry.

The most direct result of R&D investment is the comprehensive outbreak on the product side.

In the field of reproductive health, the company has launched the DNBSEQ-G99 platform and non-invasive prenatal genetic testing services. In addition, the CNV-seq amniotic fluid testing kit and chromosomal testing products have also been introduced, making it the first company in the industry to have dual authoritative certifications.

In the field of oncology and chronic diseases, the new listing of Hua Yan Kang cervical cancer DNA methylation detection products provides a more accurate tool for early screening. The comprehensive upgrade of the HuaDa HALOS tumor gene testing data analysis and interpretation integrated machine further improves the efficiency and precision of diagnosis and treatment.

In the field of infectious diseases, the successful release of the PTseq respiratory infectious pathogen high-throughput genetic testing localization solution provides strong technological support for epidemic prevention and control and rapid diagnosis of infectious diseases.

In the field of precision medicine, BGI Genomics' Geline intelligent-AI+NFS one-stop NGS laboratory solution has been officially released, driving the intelligentization of precision medical services. The company has also launched an innovative method based on large language models to accelerate the diagnosis process of rare genetic diseases.

It can be seen that from detection equipment to test kits, bgi genomics continues to penetrate the underlying universal technology and enrich the product matrix. These cutting-edge new technologies and innovative products will become a powerful engine for bgi genomics to enhance new quality productivity, opening up new growth points for future performance.

Continuously developing new models and leading the industry's development.

In terms of global market expansion, this half-year report also had a good performance. With outstanding technological strength and rapid response capability, the company has significantly increased its international influence.

It is worth noting that in the business growth in the Southeast Asia region, the business revenue of the precise medical testing comprehensive solution business has increased by over 70% year-on-year. Bgi genomics accurately anchors the Belt and Road Initiative concept countries, successfully replicating and optimizing mature and efficient business models in overseas markets, and expanding business through diversified strategies.

Furthermore, during the reporting period, the internet hospital established by bgi genomics in Tianjin has obtained qualifications for the operation of second and third-class medical equipment. As the core of bgi genomics' intelligent medical ecosystem, the Tianjin Internet Hospital integrates prevention, screening, diagnosis, treatment, supervision, and aims to provide users with comprehensive and intelligent medical health services. The company is gradually building a closed-loop business in multiple scenarios, greatly improving the convenience and accessibility of medical services, and achieving an important breakthrough in the new scenario strategic layout.

Conclusion

Overall, bgi genomics has demonstrated resilience in responding positively to market changes in the latest half-year report, successfully withstanding industry fluctuations and macroeconomic challenges. The company has deeply implemented the strategy of driving the innovative development of genomics in the field of precision medicine with "new models, new ideas, new technologies, and new scenarios". As a leader in the global gene industry, every transformation of bgi genomics brings surprises and hopes, leading the vigorous rise of new quality productivity and creating new performance growth points.