华大基因(300676) - 2024 Q2 - 季度财报

Important Notice, Table of Contents, and Definitions This chapter provides standard statements, the table of contents, and definitions of key terms and company entities, ensuring the report's truthfulness, accuracy, and completeness - This chapter includes standard statements, the table of contents, and definitions of key terms and company entities, providing foundational information for understanding the report, with the Board, Supervisory Board, and senior management ensuring its truthfulness, accuracy, and completeness[2][3][5] Company Profile and Key Financial Indicators This section provides the company's basic information and presents key financial performance indicators for the reporting period Company Profile This chapter provides the company's basic information, including its stock ticker "BGI Genomics", stock code "300676", listing exchange, full Chinese and English names, and legal representative Company Basic Information | Item | Content | | :--- | :--- | | Stock Abbreviation | BGI Genomics | | Stock Code | 300676 | | Stock Exchange | Shenzhen Stock Exchange | | Company's Chinese Name | 深圳华大基因股份有限公司 | | Company's English Name | BGI Genomics Co.,Ltd. | | Legal Representative | Zhao Lijian | Key Accounting Data and Financial Indicators During the reporting period, the company experienced significant declines in both operating revenue and net profit, with operating revenue decreasing by 9.67% and net profit attributable to shareholders plummeting by 63.45% Key Financial Indicators for H1 2024 | Indicator | Current Reporting Period | Prior Period (Adjusted) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue (RMB) | 1,871,450,587.02 | 2,071,830,715.34 | -9.67% | | Net Profit Attributable to Shareholders (RMB) | 18,199,776.02 | 49,788,771.48 | -63.45% | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items (RMB) | 1,214,292.53 | 56,034,837.54 | -97.83% | | Net Cash Flow from Operating Activities (RMB) | -80,476,821.12 | 2,325,389.52 | -3,560.79% | | Basic Earnings Per Share (RMB/share) | 0.0433 | 0.1215 | -64.36% | | Weighted Average Return on Net Assets | 0.18% | 0.50% | -0.32% | Non-Recurring Gains and Losses and Amounts During the reporting period, the company's total non-recurring gains and losses amounted to 16.99 million RMB, primarily from government subsidies and investment income Details of Non-Recurring Gains and Losses | Item | Amount (RMB) | | :--- | :--- | | Government subsidies recognized in current profit or loss | 17,509,712.36 | | Gains or losses from entrusted investments or asset management | 12,789,420.48 | | Gains or losses from changes in fair value of financial assets and liabilities | -9,288,706.63 | | Gains or losses from disposal of non-current assets | -1,079,387.04 | | Other non-operating income and expenses | 646,145.22 | | Total | 16,985,483.49 | Management Discussion and Analysis This section provides an in-depth analysis of the company's main business, operational performance, core competencies, and key risks during the reporting period Company's Main Business Activities During the Reporting Period The company's core business involves providing research services and precision medicine testing solutions to medical and research institutions using multi-omics technologies - The company's business comprehensively covers the entire gene industry value chain and application fields, including reproductive health, oncology prevention, and infection control, committed to safeguarding human health through technological innovation[21] - During the reporting period, the company launched Geline Lingxi, an AI+ one-stop NGS laboratory solution, aiming to lower the entry barrier for NGS testing and promote precision medicine in grassroots medical institutions through integrated automation and intelligent technologies[27] Main Businesses, Products, and Uses This section details the company's core business segments, including reproductive health, oncology, infection control, multi-omics, and precision medicine, outlining their respective products and applications Main Business Model This section describes the company's operational strategies, encompassing its service delivery, sales channels, and collaboration models within the genetic testing and precision medicine industry Key Performance Drivers This section identifies the primary factors influencing the company's financial performance, such as technological innovation, market expansion, policy support, and public health demands Industry Landscape and Company's Industry Position This section analyzes the competitive environment and the company's standing within the genetic testing and precision medicine industry, highlighting its market share and strategic advantages Overview of Operations During the Reporting Period In H1 2024, operating revenue decreased by 9.67% to 1.87 billion RMB, and net profit attributable to shareholders fell by 63.45% to 18.20 million RMB, primarily due to reduced infection control and precision medicine revenue Overall Operating Performance for H1 2024 | Indicator | Amount (Million RMB) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 1,871.45 | -9.67% | | Net Profit Attributable to Shareholders | 18.20 | -63.45% | Reproductive Health Business Reproductive health business achieved 607 million RMB in operating revenue, growing by 7.19%, with strong growth in carrier screening and genetic testing sub-segments Reproductive Health Business Revenue and Growth | Business Segment | H1 2024 Operating Revenue (Million RMB) | YoY Growth | | :--- | :--- | :--- | | Reproductive Health Business | 607 | 7.19% | | Carrier Screening | - | Approx. 41.19% | | Chromosomal Abnormality Detection (CNV-seq) | - | Approx. 28.65% | | Newborn Genetic Disease Screening | - | Approx. 32.18% | | Genetic Disease Testing Series | - | Approx. 38.62% | - As of the end of the reporting period, the company's reproductive health testing products have cumulatively served over 31 million person-times, with non-invasive prenatal genetic testing exceeding 16.79 million person-times, solidifying its market leadership[59] Oncology and Chronic Disease Prevention and Control Business Oncology and chronic disease prevention business generated 248 million RMB in revenue, a 13.69% increase, driven by significant growth in colorectal cancer and hereditary tumor genetic testing Oncology and Chronic Disease Prevention and Control Business Revenue and Growth | Business Segment | H1 2024 Operating Revenue (Million RMB) | YoY Growth | | :--- | :--- | :--- | | Oncology and Chronic Disease Prevention and Control Business | 248 | 13.69% | | Colorectal Cancer Testing | - | Approx. 189.12% | | Hereditary Tumor Genetic Testing | - | Approx. 33.65% | - As of the end of the reporting period, over 1.30 million fecal DNA methylation tests and 7.50 million HPV genotyping services have been completed globally, demonstrating the initial success of large-scale public health projects[63] Infection Prevention and Control Business Infection prevention and control business revenue significantly declined by 73.25% to 38 million RMB, primarily due to reduced public health event-related income and stricter regulations on external sample testing Infection Prevention and Control Business Revenue | Business Segment | H1 2024 Operating Revenue (Million RMB) | YoY Growth | | :--- | :--- | :--- | | Infection Prevention and Control Business | 38 | -73.25% | - The performance decline is mainly attributed to a significant year-on-year decrease in operating revenue from public health events and stricter domestic regulations on medical institution sample outsourcing[68] Multi-Omics Big Data and Synthesis Business Multi-omics and synthesis business revenue decreased by 7.49% to 304 million RMB, mainly due to geopolitical impacts on tech services in Europe and America, despite strong metagenomic sequencing growth Multi-Omics and Synthesis Business Revenue | Business Segment | H1 2024 Operating Revenue (Million RMB) | YoY Growth | | :--- | :--- | :--- | | Multi-Omics and Synthesis Business | 304 | -7.49% | | Metagenomic Sequencing Business | - | Approx. 13.23% | Precision Medicine Testing Integrated Solutions Business Precision medicine solutions revenue decreased by 17.00% to 664 million RMB due to reduced public health event-related income, though regular business grew by 33.19% Precision Medicine Testing Integrated Solutions Business Revenue | Business Segment | H1 2024 Operating Revenue (Million RMB) | YoY Growth | | :--- | :--- | :--- | | Precision Medicine Testing Integrated Solutions | 664 | -17.00% | - Excluding the impact of public health events, this business segment's operating revenue increased by 33.19% year-on-year[76] - Overseas business expansion made progress, with operating revenue in the Southeast Asia region growing by over 70% year-on-year[76] Analysis of Core Competencies The company's core competencies include comprehensive qualifications, a global laboratory network, robust R&D, extensive product lines, global strategy, and AI integration for precision medicine - The company possesses comprehensive qualification advantages, including 20 medical institution practice licenses, 251 domestic medical device registration certificates/filings, and 369 overseas medical device qualifications, covering 25 countries and regions such as the EU and Japan[108] - The company operates one of the world's largest medical gene testing centers, with 28 gene testing laboratories and approximately 900 joint laboratories established with thousands of global medical institutions, forming a significant scale and layout advantage[110] - The company highly values R&D innovation, holding 711 authorized patents (including 605 invention patents) and 852 software copyrights as of the reporting period, ensuring sustainable development through its extensive product line[114][115] - The company strategically invests in AI, developing Genetic Transformer (GeneT), an AI large language model-driven method for identifying pathogenic variants in rare genetic diseases, enhancing analysis efficiency and clinical application value[126] Analysis of Main Business This chapter presents year-on-year financial data changes for main businesses, showing a 9.67% revenue decrease, 11.84% cost decrease, and a significant 39.05% drop in financial expenses Key Financial Data Year-on-Year Changes | Item | Current Reporting Period (RMB) | Prior Period (RMB) | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 1,871,450,587.02 | 2,071,830,715.34 | -9.67% | - | | Operating Cost | 987,547,295.68 | 1,120,165,357.30 | -11.84% | - | | Selling Expenses | 398,275,857.99 | 463,819,429.61 | -14.13% | - | | Financial Expenses | -26,960,620.66 | -19,389,304.84 | -39.05% | Primarily due to increased bank deposit interest income | | Net Cash Flow from Operating Activities | -80,476,821.12 | 2,325,389.52 | -3,560.79% | Primarily due to decreased cash received from sales of goods and services | Operating Performance by Product or Service | Product or Service Segment | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Reproductive Health Basic Research and Clinical Application Services | 606,960,394.09 | 329,537,024.49 | 45.71% | 7.19% | 2.10% | 2.71% | | Oncology and Chronic Disease Prevention & Control and Translational Medicine Services | 247,672,248.61 | 155,844,804.28 | 37.08% | 13.69% | 6.38% | 4.33% | | Multi-Omics Big Data Services and Synthesis Business | 303,784,226.03 | 189,495,961.42 | 37.62% | -7.49% | -19.20% | 9.04% | | Precision Medicine Testing Integrated Solutions | 664,210,388.09 | 252,242,193.60 | 62.02% | -17.00% | -22.56% | 2.72% | Risks Faced by the Company and Countermeasures The company faces risks from market competition, policy changes, overseas operations (especially US legislation), exchange rate fluctuations, and supply chain issues, with countermeasures including innovation and compliance - Intensified market competition: Rapid industry growth and new entrants lead to declining prices, potentially impacting gross margins and profitability[152] - Industry policy change risks: Adjustments in domestic and international industry policies and regulations (e.g., high-throughput sequencing, human genetic resource management, data security) may adversely affect operations[153] - Overseas business risks: The US listing of some subsidiaries on the "Entity List" and the advancement of the "Biosecurity Act" may restrict the company's US business development and supply chain, potentially impacting operations and profitability[156][157] - Supply chain risks: Reliance on overseas suppliers for some raw materials and related-party procurement may lead to unstable supply or increased transaction costs, adversely affecting business operations[160] Corporate Governance This section details the company's corporate governance structure, including information on its equity incentive plans and employee stock ownership programs Equity Incentive and Employee Stock Ownership Plans The company is implementing its 2022 restricted stock incentive plan and second employee stock ownership plan, with the first vesting period completed and the first lock-up period expired - The 2022 restricted stock incentive plan granted a total of 8.20 million shares to management and core business personnel, with 2023-2025 as assessment years and non-COVID-related operating revenue growth as the key performance indicator[170][173] - During the reporting period, the first vesting period of the 2022 incentive plan's initial grant was completed, with 1.91 million shares vested by 446 individuals at a price of 27.83 RMB/share[181] - The second employee stock ownership plan involves 42 holders, owning 4.00 million shares, representing 0.96% of the company's total share capital, with 21.70 million RMB in amortization expenses during the reporting period[182][187] Environmental and Social Responsibility This section outlines the company's commitment to environmental protection and social welfare, detailing its initiatives in public health and community support Social Responsibility Performance The company actively fulfills social responsibilities through public welfare projects like birth defect and oncology prevention, conducting numerous free clinics and supporting thalassemia and ALS patients - The company conducted nearly a hundred free clinic events, providing free genetic testing and counseling services to patients with hereditary diseases and their families, benefiting a cumulative 20,000 person-times[192] - Through the "Hua Foundation" and "Tianxia Wupin Foundation," 21,089 severe thalassemia public welfare samples were completed, helping 765 children find fully matched donors and assisting nearly 50 children with severe thalassemia in completing hematopoietic stem cell transplants[192][193] Significant Matters This section covers critical events and disclosures, including ongoing litigation, significant related-party transactions, and other material developments affecting the company Litigation Matters The company disclosed multiple litigation and arbitration cases, including significant equity repurchase disputes totaling 339 million RMB still under review, and a contract dispute with a supplier for 98.83 million RMB - The company is involved in four equity repurchase disputes with investment institutions, totaling approximately 726 million RMB, with one case settled and three ongoing, amounting to 339 million RMB in unresolved claims[208][211] - The company is involved in a contract dispute with a supplier, where the claim amount was revised from 649 million RMB to 98.83 million RMB, with the first-instance trial pending[209][210] Significant Related Party Transactions The primary related-party transaction involved purchasing equipment, materials, and services from MGI and its subsidiaries, totaling 340.06 million RMB, within the approved annual limit Significant Related Party Transactions Related to Ordinary Operations | Related Party | Content of Related Party Transaction | Amount of Related Party Transaction (Million RMB) | Percentage of Similar Transactions | Approved Transaction Limit (Million RMB) | | :--- | :--- | :--- | :--- | :--- | | MGI and its Subsidiaries | Equipment, Materials, After-sales Services, etc. | 340.06 | 34.97% | 940.09 | Share Changes and Shareholder Information This section details changes in the company's share capital and provides an overview of its shareholder structure, including major shareholders and their holdings Share Change Status During the reporting period, the company's total share capital increased by 1.91 million shares to 415.82 million shares due to the vesting of the 2022 restricted stock incentive plan - During the reporting period, the company's total share capital increased by 1.91 million shares due to equity incentive vesting, reaching 415.82 million shares at period-end[231][232][233] Number of Shareholders and Shareholding Status As of the reporting period, the company had 66,523 common shareholders, with the controlling shareholder and its concerted parties holding 37.34% of shares, and institutional investors prominent among the top ten Top Ten Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held at Period-End (shares) | | :--- | :--- | :--- | :--- | | Shenzhen BGI Genomics Co., Ltd. | Domestic Non-State-Owned Legal Person | 35.78% | 148,773,893 | | Shenzhen Shenghua Investment Enterprise (Limited Partnership) | Domestic Non-State-Owned Legal Person | 8.29% | 34,470,455 | | Bank of Communications - Wanjia Industry Selection Mixed Fund (LOF) | Other | 2.24% | 9,333,338 | | Bank of China - Huabao CSI Healthcare ETF | Other | 1.91% | 7,961,273 | | Industrial and Commercial Bank of China - E Fund ChiNext ETF | Other | 1.14% | 4,758,199 | | BGI Genomics Co., Ltd. - Second Employee Stock Ownership Plan | Other | 0.96% | 4,000,141 | | Shenzhen BGI SanShengYuan Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 0.95% | 3,935,824 | | Agricultural Bank of China - CSI 500 ETF | Other | 0.73% | 3,049,600 | | He Qianxing | Domestic Natural Person | 0.68% | 2,820,936 | | HKSCC Nominees Limited | Overseas Legal Person | 0.62% | 2,595,430 | - Controlling shareholder BGI Holdings and its concerted parties, BGI SanShengYuan and Mr. Wang Jian, collectively hold 155.25 million shares, representing 37.34% of total share capital, with 92.56 million shares pledged, accounting for 59.62% of their combined holdings and 22.26% of the company's total share capital[226] Financial Report This section presents the company's unaudited consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in equity Financial Statements This chapter provides unaudited consolidated and parent company financial statements, showing total assets of 13.38 billion RMB (down 1.70%) and net assets attributable to shareholders of 10.04 billion RMB (up 1.82%) Key Items from Consolidated Balance Sheet | Item | Period-End Balance (RMB) | Period-Beginning Balance (RMB) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 4,467,509,222.88 | 4,732,376,385.95 | | Accounts Receivable | 1,734,733,017.31 | 1,443,946,645.90 | | Inventories | 604,186,007.28 | 602,182,084.31 | | Fixed Assets | 2,633,901,519.06 | 2,652,013,243.12 | | Total Assets | 13,381,067,622.14 | 13,613,007,886.01 | | Total Liabilities | 3,195,998,382.48 | 3,608,987,599.21 | | Total Equity Attributable to Parent Company Owners | 10,039,089,191.14 | 9,859,237,734.19 | Key Items from Consolidated Income Statement | Item | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | | Total Operating Revenue | 1,871,450,587.02 | 2,071,830,715.34 | | Operating Cost | 987,547,295.68 | 1,120,165,357.30 | | Research and Development Expenses | 250,247,428.23 | 264,583,009.67 | | Total Profit | 25,334,359.06 | 62,670,835.28 | | Net Profit | 20,153,227.36 | 49,964,211.86 | | Net Profit Attributable to Parent Company Shareholders | 18,199,776.02 | 49,788,771.48 |