Summary of the Conference Call for 华大智造 Company Overview - 华大智造 is a leading domestic gene sequencing instrument company listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board, controlled by the founder of 华大集团, 汪建 [2][3] - The company operates in three main business segments: gene sequencing instruments, laboratory automation, and emerging businesses [4][5] Financial Performance - The company's revenue was significantly impacted by the pandemic but has returned to normal levels post-2023, with a decline in revenue in the first half of 2025 due to price competition, although profitability has improved with a significant reduction in losses [2][6] - The company achieved breakeven in the first half of 2025, with expectations for revenue improvement in the second half [6][8] Market Dynamics - The global gene sequencing market is projected to grow rapidly, reaching over $60 billion by 2030, with the upstream sequencing instruments and consumables market estimated at around $14 billion [2][7] - Approximately 70% of the company's revenue comes from the domestic market, with overseas markets seen as future growth points, despite potential short-term geopolitical disruptions [2][8] Industry Trends - The gene sequencing industry is significantly affected by geopolitical factors, which have hindered project development and international trade, resulting in slower-than-expected growth rates [9] - The second-generation sequencing technology remains the mainstream, with 华大智造's DMBSEQ technology providing a competitive edge [10][13] Competitive Landscape - The company has maintained a leading market share in domestic new installations for three consecutive years, outperforming Illumina [4][11] - The inclusion of Illumina in China's unreliable entity list has created opportunities for domestic companies, although it has also sparked price wars among local manufacturers [12][14] Future Growth Potential - The company is focusing on expanding its laboratory automation and emerging business segments, which are expected to maintain double-digit growth rates [15][16] - The overall growth of the company is primarily driven by its gene sequencing business, with a projected market value range of 32 to 35.5 billion yuan, and a reasonable stock price range of 77 to 82 yuan, indicating significant upside potential [17] Conclusion - 华大智造 is positioned well within the gene sequencing industry, with strong domestic performance and potential for international expansion, despite facing challenges from geopolitical factors and competition. The company's innovative technology and strategic focus on emerging markets and automation present promising growth opportunities moving forward [2][9][15]

Core Viewpoint - 华大智造's stock has experienced fluctuations, with a year-to-date increase of 47.04%, but recent declines in the short term [1][2] Financial Performance - For the first half of 2025, 华大智造 reported revenue of 1.114 billion yuan, a year-on-year decrease of 7.90%, while the net profit attributable to shareholders was -104 million yuan, an increase of 65.28% compared to the previous year [2] Stock Market Activity - As of September 16, 华大智造's stock price was 68.80 yuan per share, with a market capitalization of 28.656 billion yuan. The stock saw a net outflow of 10.2198 million yuan in principal funds [1] - The company has appeared on the龙虎榜 twice this year, with the most recent appearance on March 4, where it recorded a net buy of -44.7653 million yuan [1] Shareholder Information - As of June 30, 2025, 华大智造 had 13,500 shareholders, an increase of 7.64% from the previous period, with an average of 15,766 circulating shares per shareholder, a decrease of 7.09% [2] - The top ten circulating shareholders include various ETFs, with notable changes in holdings among them [3]

Core Viewpoint - The report outlines the ongoing supervision and assessment of Shenzhen Huada Intelligent Manufacturing Co., Ltd. (华大智造) by CITIC Securities during its initial public offering and listing on the Sci-Tech Innovation Board, emphasizing compliance with regulatory requirements and the absence of significant issues during the review period [1][3][32]. Group 1: Continuous Supervision Overview - CITIC Securities has established a continuous supervision work system and a corresponding work plan, clarifying the requirements for on-site inspections [1]. - The sponsor has signed a sponsorship agreement with the company, which specifies the rights and obligations of both parties during the supervision period [1]. Group 2: Findings and Issues - During the supervision period, no significant issues were identified by the sponsor or the representative [3]. - The company faces risks related to significant performance declines or losses due to high R&D investments and market expansion costs, particularly if international relations worsen or macroeconomic conditions deteriorate [4]. Group 3: Core Competitiveness Risks - The company operates in a technology-intensive life sciences sector, facing risks related to product upgrades and technological updates, which require substantial R&D investments [5][6]. - Risks include the potential loss of core technical talent and the leakage of core technologies, which could adversely affect the company's long-term development [6]. - The company is also exposed to intellectual property litigation risks, particularly from competitors like Illumina, which could limit its market expansion in affected regions [7]. Group 4: Operational Risks - The global gene sequencing industry is rapidly evolving with increasing competition, particularly from established players like Illumina and Thermo Fisher [8]. - The company has developed a diverse product matrix but faces challenges due to economic downturns and regulatory pressures affecting market growth [9]. - New business and customer expansion efforts are critical, as the company must adapt to market demands and regulatory environments [10]. Group 5: Financial Risks - The company has adjusted its pricing strategy in response to competitive pressures, which has led to fluctuations in gross margins [12]. - There is a risk of bad debts from accounts receivable, despite measures taken to manage credit risk [13]. - Inventory levels are high, and potential declines in market demand could lead to significant write-downs [14]. Group 6: Macro Environment Risks - Geopolitical tensions and international trade protectionism pose risks to the company's product sales and market access [15]. - The company relies on overseas suppliers for some raw materials, making it vulnerable to supply chain disruptions due to trade conflicts [16]. Group 7: Financial Performance Indicators - The company's net profit attributable to shareholders has shown a significant reduction in losses, with a decrease of 65.28% year-on-year [16]. - The basic earnings per share also reflect a similar trend, indicating improved financial management and cost reduction efforts [16]. Group 8: Core Competitiveness - The company has developed a comprehensive product matrix in gene sequencing, leveraging its proprietary DNBSEQ technology to enhance its market position [18][19]. - The focus on intelligent automation and AI-driven solutions is expected to drive innovation and operational efficiency in laboratory settings [21][23]. Group 9: Research and Development - R&D expenditures have increased, with a higher proportion of costs being capitalized compared to the previous year [30]. - The company is actively pursuing various R&D projects to enhance its technological capabilities and product offerings [30]. Group 10: Compliance and Governance - The company has established a robust system for managing and utilizing raised funds, ensuring compliance with regulatory requirements [32]. - There are no significant changes in the shareholding status of major stakeholders during the supervision period [34].

Core Insights - The sequencing instrument market is experiencing significant changes with the launch of the DNBSEQ T7+ by BGI Genomics, which boasts a data output capacity exceeding 14Tb in 24 hours, making it one of the highest throughput and cost-effective clinical sequencing devices globally [1][5] - The competitive landscape for domestic sequencing instruments is intensifying, with various companies like Zhenmai Biology and Novogene launching innovative products to capture market share [2][6] Market Dynamics - The T7+ is now available for order, with immediate supply in mainland China and planned deliveries to Hong Kong, Macau, Taiwan, and overseas regions by the fourth quarter of 2025 [2] - Domestic sequencing instruments are gaining market share, with predictions indicating that by 2025, the market share of domestic brands could exceed 60% [3] - BGI Genomics reported a revenue of 1.114 billion yuan in the first half of 2025, a slight year-on-year decline of 7.9%, but with a 40% increase in instrument shipments [3] Competitive Landscape - The industry is witnessing a "razor-blade" model where instrument sales drive ongoing consumable revenue, making it crucial to capture installation volume for long-term value [4] - The rapid development of domestic sequencing instruments is accompanied by challenges such as intense price competition and the need for continuous R&D investment to maintain technological competitiveness [4][7] Global Expansion - Domestic sequencing companies are increasingly entering global markets, with BGI Genomics establishing over ten localized service centers abroad and Novogene's services reaching over 30 countries [8] - The gap between domestic devices and international brands is narrowing, indicating a new era driven by domestic innovation, AI integration, and multi-omics research [8]

中信证券股份有限公司 关于深圳华大智造科技股份有限公司 2025 年半年度持续督导跟踪报告 中信证券股份有限公司（以下简称"中信证券"或"保荐人"）作为深圳华 大智造科技股份有限公司（以下简称"华大智造"或"公司"或"上市公司"） 首次公开发行股票并在科创板上市的保荐人。根据《证券发行上市保荐业务管理 办法》、《上海证券交易所科创板股票上市规则》等相关规定，中信证券履行持 续督导职责，并出具本持续督导半年度跟踪报告。 一、持续督导工作概述 1、保荐人制定了持续督导工作制度，制定了相应的工作计划，明确了现场 检查的工作要求。 2、保荐人已与公司签订保荐协议，该协议已明确了双方在持续督导期间的 权利义务，并报上海证券交易所备案。 3、本持续督导期间，保荐人根据相关法规和规范性文件的要求履行持续督 导职责，具体内容包括： （1）查阅公司章程、三会议事规则等公司治理制度、三会会议材料； 1 （2）查阅公司财务管理、会计核算和内部审计等内部控制制度； （3）查阅公司与控股股东、实际控制人及其关联方的资金往来明细及相关 内部审议文件、信息披露文件； （4）查阅公司募集资金管理相关制度、募集资金使用信息披露文件和决策 程序 ...

Fundraising Overview - The company, Shenzhen BGI Intelligent Manufacturing Technology Co., Ltd., has successfully completed an initial public offering (IPO) of 41,319,475 shares at a price of RMB 87.18 per share, raising a total of RMB 3,602,231,830.50, with a net amount of RMB 3,284,554,442.02 after deducting issuance costs [2][3] Fund Management Agreements - The company has established a special account for fundraising and signed a four-party supervision agreement with Wuhan BGI Intelligent Manufacturing Co., Ltd., China Merchants Bank Wuhan Branch, and CITIC Securities Co., Ltd. to regulate the management of the raised funds [3][4] - The special account is designated solely for the storage and use of funds related to the BGI Intelligent Manufacturing R&D Center project, with a current balance of RMB 0 as of August 4, 2025 [4][5] Cash Management - The company has also set up a cash management special settlement account, allowing for the investment of temporarily idle funds in high-security, liquid deposit products or principal-protected products, with a maximum of RMB 20 billion in idle self-owned funds and RMB 17 billion in idle raised funds [10][12] - The cash management account is strictly for the BGI Intelligent Manufacturing and R&D Base project, ensuring that no non-raised funds are stored or used for other purposes [12][17] Regulatory Compliance - The agreements stipulate that the company must comply with relevant laws and regulations, and the appointed sponsor must conduct ongoing supervision of the management and use of the raised funds [14][19] - The sponsor has the right to conduct on-site investigations and inquiries to ensure compliance with the management protocols [19][20] Reporting and Accountability - The bank is required to provide monthly account statements to the sponsor, and any withdrawals exceeding RMB 50 million or 20% of the net amount raised must be reported within five working days [20][25] - The agreements include provisions for dispute resolution through negotiation or arbitration in Shenzhen, ensuring that all parties are held accountable for compliance [22][32]

账户三方、四方监管协议的公告 证券代码：688114 证券简称：华大智造 公告编号：2025-059 深圳华大智造科技股份有限公司 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 一、募集资金基本情况 经中国证券监督管理委员会《关于同意深圳华大智造科技股份有限公司首 次公开发行股票注册的批复》（证监许可[2022]1638 号）核准，深圳华大智造科 技股份有限公司（以下简称"公司"）公开发行 A 股股票 41,319,475 股，每股 发行价格人民币 87.18 元，募集资金总额人民币 3,602,231,830.50 元，扣除与募 集资金相关的发行费用总计人民币 317,677,388.48 元（不含增值税），募集资金 净额为人民币 3,284,554,442.02 元。毕马威华振会计师事务所（特殊普通合伙） 对截至 2022 年 9 月 6 日公司此次公开发行股票的募集资金到账情况进行了审验， 并出具了《验资报告》（毕马威华振验字第 2201281 号）。 二、募集资金专户的设立情况及《募集资金专户存储四方监管协议》的签 ...

Group 1 - The core message emphasizes the importance of health and wellness, advocating for a lifestyle that includes good nutrition, physical activity, adequate sleep, and positivity [2] - The CEO of BGI Group, Yin Ye, highlights the need for technological innovation to be accessible and affordable, particularly in the context of expensive foreign therapies [2] - There is a belief that as core tools in life sciences become more accessible and the marginal cost of digital health approaches zero, a new norm of health and longevity will emerge [2] Group 2 - BGI Group has signed cooperation agreements with multiple companies, including Gene+ and Berry Technology, to become the first batch of clients for the T7+ system [4] - A collaborative initiative called the "Hundred Thousand Long Read Genome Alliance" has been established, involving BGI and 14 medical and research institutions [5] - BGI is also working with various partners to create a digital health ecosystem that integrates biological intelligence and health services [5] Group 3 - A strategic cooperation agreement has been signed between BGI Group and the management bureau of Hainan Boao Lecheng International Medical Tourism Pilot Zone to enhance collaborative innovation [7] - Yin Ye has been appointed as the "Chief Science Communication Ambassador" for the Lecheng area [7]

Group 1: Market Overview - The domestic gene sequencing instrument bidding market is accelerating, with 137 procurement units and 123 winning units, totaling approximately 249 million yuan in bids for 179 sets of equipment by mid-2025 [1] - Domestic manufacturers, including BGI Genomics (688114.SH) and Berry Genomics (000710.SZ), captured a combined market share of 59.31%, while the only foreign manufacturer, Thermo Fisher, held a 14.44% market share [1] - In 2024, BGI Genomics was the only domestic manufacturer in the top three by market share, with a 50.05% share, while foreign manufacturers had a combined share of 16.24% [1] Group 2: Company Performance - BGI Genomics reported a significant increase in sales volume for its long-read sequencing instruments, exceeding 700 units in the first half of 2025, marking a year-on-year growth of 60.35% [2] - The company also reduced its net profit loss by 65.28% during the same period [2] Group 3: Competitive Landscape - The competition in the domestic gene sequencing market is intensifying, leading to price wars among manufacturers [3] - BGI Genomics' adjusted gross margin decreased by 8.03 percentage points to 52.85% in the first half of 2025, while Berry Genomics and Novogene (688315.SH) also experienced declines in their gross margins [3] - The business model in the gene sequencing industry relies on equipment sales as an entry point, with consumables as the core profit driver, making market share in equipment sales crucial for long-term customer value [3] Group 4: Technological Advancements - BGI Genomics launched the DNBSEQ T7+ ultra-high-throughput gene sequencer, capable of delivering over 14Tb of sequencing data within 24 hours, significantly improving processing times compared to competitors [4] - The T7+ sequencer addresses previous delays in sample processing, allowing for a more efficient workflow and consistent scheduling for customers [4] - The technology ensures high-quality sequencing by maintaining the integrity of DNA samples, thus minimizing errors associated with other methods [4]

Core Viewpoint - The domestic gene sequencing market in China is experiencing significant changes, with BGI Group's subsidiary, BGI Genomics, leading advancements in high-throughput gene sequencing technology, particularly with the launch of the T7+ sequencer, which enhances capabilities and reduces operational costs [1][2][3]. Group 1: Product Development and Market Position - BGI Genomics launched the T7+ sequencer, an upgraded version of the T7, which integrates seven modules for improved throughput and speed while being environmentally friendly [2][3]. - The T7+ is recognized as the "world's strongest daily delivery capacity ultra-high-throughput gene sequencer," capable of producing up to 14Tb of data in 24 hours, setting a new industry record [3]. - The company has achieved a historical high in instrument sales for its long-read sequencing business, with over 700 units sold in the first half of 2025, marking a 60.35% year-on-year increase [3]. Group 2: Market Dynamics and Strategic Positioning - The Chinese Ministry of Commerce has placed Illumina on an unreliable entity list, banning its exports to China, which has created a favorable environment for domestic companies like BGI Genomics [2]. - BGI Genomics has a robust order backlog of approximately 900 million yuan, with 700 million yuan (78%) attributed to its long-read sequencing business, indicating strong future performance potential [4]. - The company is positioning 2025 as a pivotal year for its long-read strategy, following a series of product launches aimed at enhancing its market share and technological capabilities [2][4].