华大基因(300676) - 2025 Q2 - 季度财报

Part I Important Notes, Table of Contents, and Definitions Important Notes The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the semi-annual report, and declare no cash dividends, bonus shares, or capital increase from capital reserves for this period - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content[3] - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital[4] Table of Contents This section lists the structured table of contents for the report, including important notes, company profile, management discussion and analysis, corporate governance, significant matters, share changes and shareholder information, bond-related matters, and financial reports - The report comprises eight main chapters covering company operations, finance, governance, and significant matters[6] Definitions This section provides definitions for common terms and company-related entities used in the report, covering company names, subsidiaries, related parties, industry technical terms, and financial reporting periods to ensure clear understanding of the report content - The report defines “Company”, “the Company”, and “BGI Genomics” as Shenzhen BGI Genomics Co., Ltd[13] - Detailed listing of BGI Genomics and its multi-level subsidiaries, related party names, and business relationships[13][14] - Explanation of key technologies and medical terms such as gene sequencing, epigenomics, and Non-Invasive Fetal Trisomy Test (NIFTY)[14][15] Part II Company Profile and Key Financial Indicators 1. Company Profile This section introduces the company's basic information, including stock abbreviation, code, listing exchange, Chinese and foreign names, and legal representative Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | 华大基因 | | Stock Code | 300676 | | Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 深圳华大基因股份有限公司 | | Foreign Name | BGI Genomics Co., Ltd. | | Legal Representative | 赵立见 | 2. Contact Persons and Information This section provides contact information for the company's Board Secretary and Securities Affairs Representative, including names, addresses, telephone numbers, fax numbers, and email addresses - The Board Secretary is Xu Qian, and the Securities Affairs Representative is Ao Liping, both located at 8th Floor, Zone B, BGI Time-Space Center, No. 9 Yunhua Road, Meisha Street, Yantian District, Shenzhen, Guangdong Province[19] 3. Other Information This section discloses the company's contact details, information disclosure and document storage locations, and registration changes, indicating a change in the company's registered address during the reporting period - The company's registered address has changed to 8 South 1-1, Building B, BGI Time-Space Center, No. 9 Yunhua Road, Binhai Community, Meisha Street, Yantian District, Shenzhen[20][23] - The company's website is http://www.bgi.com, and its email address is ir@bgi.com[20] - The registration change was completed on June 11, 2025, and disclosed on Juchao Information Network on June 12, 2025[23] 4. Key Accounting Data and Financial Indicators This section presents the company's key accounting data and financial indicators for the first half of 2025, showing a year-on-year decrease in both operating revenue and net profit attributable to shareholders, with a significant reduction in net cash flow from operating activities Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,631,472,352.82 | 1,871,450,587.02 | -12.82% | | Net Profit Attributable to Shareholders | 5,778,221.12 | 18,199,776.02 | -68.25% | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | -30,488,145.05 | 1,214,292.53 | -2,610.77% | | Net Cash Flow from Operating Activities | -413,837,716.13 | -80,476,821.12 | -414.23% | | Basic Earnings Per Share (RMB/share) | 0.0139 | 0.0433 | -67.90% | | Diluted Earnings Per Share (RMB/share) | 0.0139 | 0.0441 | -68.48% | | Weighted Average Return on Net Assets | 0.06% | 0.18% | -0.12% | | Period-End Indicators | Current Period-End (RMB) | Prior Year-End (RMB) | Period-End YoY Change | | Total Assets | 12,485,803,775.43 | 12,542,286,394.63 | -0.45% | | Net Assets Attributable to Shareholders | 9,254,583,314.33 | 9,134,857,139.18 | 1.31% | 5. Differences in Accounting Data Under Domestic and Overseas Accounting Standards The company reported no differences in net profit and net assets between financial reports prepared under International Accounting Standards or overseas accounting standards and Chinese Accounting Standards during the reporting period - The company reported no differences in accounting data under domestic and overseas accounting standards during the reporting period[25][26] 6. Non-Recurring Gains and Losses and Amounts This section lists the company's non-recurring gains and losses for the first half of 2025, totaling RMB 36,266,366.17, primarily including fair value changes, investment income from entrusted investments, and other items defined as non-recurring gains and losses Non-Recurring Gains and Losses for H1 2025 | Item | Amount (RMB) | | :--- | :--- | | Gains or losses from disposal of non-current assets | -4,430,964.94 | | Government grants recognized in profit or loss (excluding those closely related to business) | 5,189,550.73 | | Gains or losses from changes in fair value of financial assets and liabilities held by non-financial enterprises, and gains or losses from disposal of financial assets and liabilities | 11,503,417.20 | | Gains or losses from entrusted investments or asset management | 6,784,151.80 | | Reversal of impairment provisions for receivables subject to separate impairment testing | 807,720.00 | | Other non-operating income and expenses apart from the above | 226,103.79 | | Other gains and losses that meet the definition of non-recurring gains and losses | 22,197,641.30 | | Less: Income tax impact | 4,160,877.41 | | Impact on minority interests (after tax) | 1,850,376.30 | | Total | 36,266,366.17 | - The company does not classify non-recurring gains and losses as recurring gains and losses[29] Part III Management Discussion and Analysis 1. Principal Business Activities During the Reporting Period BGI Genomics, a global leader in the gene industry, provides research services, comprehensive precision medicine testing solutions, and health management services to various institutions through multi-omics, big data technologies, and medical AI large models - The company's main business covers gene sequencing, mass spectrometry, bioinformatics analysis, and medical AI large models, utilizing multi-omics and big data technologies[32] - The company provides full lifecycle testing services in reproductive health, tumor prevention and control, chronic disease management, and infection prevention and control[32] (I) Main Businesses, Products, and Applications The company's main businesses include reproductive health, tumor and chronic disease prevention and control, infection prevention and control, multi-omics big data services and synthesis, and comprehensive precision medicine testing solutions, utilizing high-throughput sequencing, mass spectrometry, bioinformatics analysis, and medical AI large models to provide comprehensive services from basic research to clinical application - Reproductive health services cover pre-marital, pre-pregnancy, prenatal, newborn, and child growth stages, aiming to comprehensively assist in birth defect prevention and control[34] - Tumor prevention and control services revolve around a “predict, screen, diagnose, monitor” closed loop, offering cancer hereditary risk assessment, early screening, medication guidance, and recurrence monitoring[36] - Infection prevention and control services are centered on high-throughput sequencing and PCR nucleic acid detection, building a full-scenario precise diagnostic product solution[37] - Multi-omics big data services and synthesis business provide research institutions and enterprises with full-process solutions including gene sequencing, mass spectrometry analysis, biological database management, and data cloud analysis[38] - Comprehensive precision medicine testing solutions integrate multiple technology platforms to provide integrated solutions, promoting clinical and research applications towards compliance, scale, automation, standardization, informatization, and intelligence[42] - The company launched SIRO high-throughput gene sequencing AI+ localized solution, achieving integrated sample extraction, library construction, sequencing, data analysis, and interpretation, lowering the entry barrier for hospitals[43] (II) Main Business Model The company's business model encompasses procurement, production, and marketing, with procurement focusing on supply chain management, production divided into process-based (clinical application) and order-based (multi-omics services), and marketing combining direct sales with agency, while actively expanding C-end business and overseas markets - Procurement models include direct procurement, customized procurement, and outsourced procurement, establishing a comprehensive supplier access, evaluation, and exit system[45] - Production models are divided into clinical development and application (process-based production) and multi-omics big data services and synthesis (order-based production)[46] - Sales models combine direct sales and agency, establishing joint ventures with local enterprises for overseas markets, and setting up a consumer business department with BGI Internet Hospital as the core hub to serve C-end customers[47][48] - Pricing models consider government-guided prices, costs, market competition, policies and regulations, sales channel fees, and competitive strategies[51] (III) Key Performance Drivers The company's performance is primarily driven by global health demand growth, multi-omics technological innovation, and the dual-wheel drive of intelligent AI and digitalization, with aging populations, major disease burdens, and policy support fueling precision medicine development and the integration of new omics technologies with AI accelerating industry upgrades and data value realization - The accelerating global aging trend, with the population aged 65 and above projected to reach 1.6 billion by 2050, drives demand for chronic and major disease screening and precision diagnosis and treatment[52] - Global new cancer cases reached nearly 20 million in 2022, projected to reach 35 million by 2050, urgently requiring multi-omics technologies for precise detection and treatment solutions[53] - National policy support and increased public health investment, such as the "Healthy China 2030 Planning Outline" and "2024 National Medical Quality and Safety Improvement Goals", provide strong guarantees for industry development[55] - The continuous reduction in high-throughput sequencing costs and the emergence of multi-omics technologies like genomics, cell omics, and spatial omics drive the development of precision medicine[58] - The National Medical Products Administration's policy supports the development of the LDT (Laboratory Developed Test) model, accelerating the clinical translation of precision medicine research findings[60] - The company actively responds to national data element market-oriented allocation reforms, completing its first data asset inventory and capitalization, and releasing China's first gene data products: “Hereditary Tumor Variation Knowledge Base” and “Tumor Somatic Variation and Medication Knowledge Base”[63] - The company builds and optimizes the “Vientiane Database”, covering reproductive health, tumor diagnosis and treatment, infection prevention and control, and chronic disease prevention and control, and develops AI-assisted diagnostic tools to improve data interpretation efficiency[64] (IV) Industry Development Landscape and Company's Industry Position BGI Genomics, as a pioneer in China's gene industry, is a leading global provider of scientific and technological services and precision medical services, with gene technology deeply applied in detection, diagnosis, treatment, and synthesis, driving rapid growth in the global and Chinese gene testing markets - BGI Genomics is a pioneer in China's gene industry and a leading global provider of scientific and technological services and precision medical services[68] - The global gene testing market is projected to grow from $21.79 billion in 2025 to $36.4 billion in 2030, with a CAGR of 10.81%[70] - National policies supporting fertility, such as the “Parenting Subsidy System Implementation Plan”, include assisted reproductive technologies in reimbursement, increasing the penetration rate of gene testing in reproductive health[71] - The nation highly prioritizes cancer prevention and control, issuing the “Healthy China Action - Cancer Prevention and Control Action Implementation Plan (2023-2030)”, aiming for an overall 5-year cancer survival rate of 46.6% by 2030[74] - Chronic disease prevention and control is a public health priority, with gene testing providing technical support for personalized health management, and an aging population driving growth in the chronic disease management market[79][80] - Detection technologies in infection prevention and control are rapidly developing, with metagenomic sequencing, molecular biology detection, and immunology detection as the three mainstream technologies[82] - Multi-omics big data services and synthesis business, supported by policies, utilize proprietary sequencing platforms and mass spectrometry multi-omics platforms to build multi-omics databases, empowering research and applications[85][86] - Precision medicine testing comprehensive solutions, driven by policies, promote the increase of market share for local enterprises through standardization, automation, informatization, and intelligence[89] - As of June 30, 2025, the company and its wholly-owned and controlled subsidiaries have obtained 5 drug registration certificates and 253 medical device registration certificates and filing receipts[130][133] (V) Overview of Operations During the Reporting Period In the first half of 2025, the company achieved operating revenue of RMB 1.631 billion, a year-on-year decrease of 12.82%, and net profit attributable to shareholders of RMB 5.7782 million, a year-on-year decrease of 68.25%, with varied revenue and business progress across its core segments and active expansion in C-end and overseas markets H1 2025 Operating Performance | Indicator | Amount (RMB 10,000) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 163,147.24 | -12.82% | | Net Profit Attributable to Shareholders | 577.82 | -68.25% | - Reproductive health business revenue was RMB 426 million, a 29.80% year-on-year decrease, primarily due to a 35% decline in NIPT business, though genetic disease gene testing series for auxiliary disease clinical diagnosis grew by approximately 15%[91] - Tumor and chronic disease prevention and control business revenue was RMB 180 million, a 27.52% year-on-year decrease, mainly due to a 42% decline in colorectal cancer testing revenue[99] - Infection prevention and control business revenue was RMB 38 million, largely flat year-on-year, with targeted high-throughput sequencing (tNGS) technology-based PTseq series products revenue growing by approximately 242%[106] - Multi-omics and synthesis business revenue was RMB 279 million, an 8.30% year-on-year decrease, with single-cell sequencing business revenue showing significant growth of approximately 110% year-on-year[109] - Comprehensive precision medicine testing solutions business revenue was RMB 696 million, a 4.80% year-on-year increase, primarily due to continuous expansion of overseas business, with emerging market business achieving double-digit growth[117] - The company launched the i99 Smart Health Multi-omics Health Management System, integrating multi-omics data with AI technology, promoting health management from “passive treatment” to “active prevention”[126] - Overseas business continues to deepen cooperation with the Thai Ministry of Public Health, promoting NIPT inclusion in medical insurance, and completing over 100 technology transfer projects in 36 countries[127][128] 2. Analysis of Core Competencies BGI Genomics' core competencies lie in its systematic R&D capabilities, AI and multi-omics integration, scaled and informatized laboratory advantages, comprehensive certifications, and global strategic layout, ensuring high-quality, compliant operations and active expansion in “Belt and Road” markets - As of June 30, 2025, the company holds 769 authorized patents (660 invention patents), 898 software copyrights, and 1,069 registered trademarks[156] - As the pioneer and technological leader in Non-Invasive Prenatal Testing (NIPT), the company has served over 19.45 million people and was the first to conduct expanded carrier screening and non-invasive prenatal testing for various dominant monogenic diseases[157][158] - The company's independently developed COLOTECTTM fecal DNA methylation detection product has obtained market access qualifications in China, the EU, and other countries and regions[160] - The company launched PMseq® pathogenic microorganism metagenomic high-throughput sequencing product, its flagship product based on metagenomic high-throughput sequencing (mNGS) technology, capable of detecting tens of thousands of pathogens in a single test[163] - The company's multi-omics big data business covers over 100 countries and regions globally, with over 6,900 cooperative partners, providing comprehensive multi-omics solutions including genomics, cell omics, spatial omics, proteomics, and metabolomics[166] - The company's SIRO high-throughput gene sequencing AI+ localized solution integrates intelligent scheduling, intelligent interpretation, and intelligent verification technologies, achieving a one-stop “sample in, report out” service[172] - The company established an Information Security Management Committee and Data Security Committee, with core production systems passing National Level 3 Cybersecurity Protection Assessment, becoming the first high-throughput gene sequencing enterprise in China to obtain ISO/IEC 27001:2022 certification[184][186] - The company holds 19 medical institution practice licenses, 17 medical laboratory accreditations for clinical gene amplification testing, 253 medical device registration certificates and filing receipts approved by the NMPA, and 387 overseas medical device qualifications[187][188] - The company's business spans over 100 countries and regions globally, establishing cooperative relationships with health authorities in over 30 countries and regions, promoting gene technology applications through co-built laboratories and technology transfers[191][192] 3. Analysis of Principal Business This section outlines the financial performance of the company's principal business, with both operating revenue and operating costs decreasing year-on-year, while financial expenses significantly declined due to reduced exchange losses and interest expenses, and income tax expenses also decreased due to lower total profit and increased deferred tax assets Year-on-Year Changes in Key Financial Data | Indicator | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 1,631,472,352.82 | 1,871,450,587.02 | -12.82% | | Operating Cost | 903,092,164.75 | 987,547,295.68 | -8.55% | | Selling Expenses | 336,523,086.25 | 398,275,857.99 | -15.51% | | Administrative Expenses | 142,806,963.64 | 169,888,355.82 | -15.94% | | Financial Expenses | -64,704,387.15 | -26,960,620.66 | -140.00% | | Income Tax Expense | -17,459,517.16 | 5,181,131.70 | -436.98% | | R&D Investment | 256,110,458.19 | 277,424,401.43 | -7.68% | | Net Cash Flow from Operating Activities | -413,837,716.13 | -80,476,821.12 | -414.23% | | Net Cash Flow from Investing Activities | -532,641,901.55 | 55,906,726.35 | -1,052.73% | | Net Cash Flow from Financing Activities | 387,172,853.09 | -297,708,866.35 | 230.05% | | Net Increase in Cash and Cash Equivalents | -547,355,342.76 | -300,528,342.69 | -82.13% | - Financial expenses decreased by 140.00% year-on-year, primarily due to reduced exchange losses and interest expenses[194] - Income tax expense decreased by 436.98% year-on-year, mainly due to a decrease in total profit and an increase in deferred tax assets recognized from share-based payments[194] Products or Services Accounting for Over 10% of Revenue | Product or Service | Operating Revenue (RMB 10,000) | Operating Cost (RMB 10,000) | 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 | 42,608.78 | 24,253.42 | 43.08% | -29.80% | -26.40% | -2.63% | | Tumor and Chronic Disease Prevention and Control and Translational Medicine Services | 17,951.96 | 12,119.06 | 32.49% | -27.52% | -22.24% | -4.59% | | Multi-omics Big Data Services and Synthesis Business | 27,857.68 | 16,297.16 | 41.50% | -8.30% | -14.00% | 3.88% | | Comprehensive Precision Medicine Testing Solutions | 69,607.43 | 33,105.15 | 52.44% | 4.80% | 31.24% | -9.58% | 4. Analysis of Non-Principal Business This section analyzes the impact of non-principal business on total profit, with investment income and fair value changes contributing positively, while credit impairment losses, asset impairment, and non-operating expenses had negative impacts, and most items are not sustainable Impact of Non-Principal Business on Total Profit | Item | Amount (RMB) | % of Total Profit | Explanation | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 18,665,756.39 | -140.19% | Primarily investment income from disposal or derecognition of subsidiaries | No | | Gains or losses from changes in fair value | 9,210,174.71 | -69.17% | Primarily gains or losses from changes in fair value of other non-current financial assets held | No | | Asset Impairment | -7,094,614.66 | 53.28% | Primarily inventory impairment | No | | Non-operating Income | 1,465,311.21 | -11.01% | Primarily gains from disposal of fixed assets | No | | Non-operating Expenses | 4,037,188.92 | -30.32% | Primarily losses from disposal of non-current assets | No | | Other Income | 8,460,197.00 | -63.54% | Primarily government grants related to daily activities | No | | Credit Impairment Losses | -116,808,325.93 | 877.28% | Primarily credit impairment losses on accounts receivable | No | | Gains or losses from asset disposal | -1,785,189.01 | 13.41% | Primarily gains or losses from disposal of fixed assets | No | - Credit impairment losses had the largest impact on total profit, accounting for 877.28%, primarily due to credit impairment losses on accounts receivable[199] 5. Analysis of Assets and Liabilities This section analyzes the company's asset and liability composition at the end of the reporting period, showing minor changes in total assets and net assets attributable to shareholders, with decreases in cash, construction in progress, and short-term borrowings, and increases in accounts receivable, fixed assets, long-term borrowings, and trading financial assets Significant Changes in Asset Composition | Item | Current Period-End Amount (RMB) | % of Total Assets | Prior Year-End Amount (RMB) | % of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 3,521,333,942.59 | 28.20% | 3,934,561,457.23 | 31.37% | -3.17% | | Accounts Receivable | 1,848,326,311.55 | 14.80% | 1,665,683,468.98 | 13.28% | 1.52% | | Fixed Assets | 2,742,132,631.64 | 21.96% | 2,578,695,623.85 | 20.56% | 1.40% | | Construction in Progress | 23,300,940.33 | 0.19% | 205,670,523.40 | 1.64% | -1.45% | | Short-term Borrowings | 10,006,000.00 | 0.08% | 24,911,943.67 | 0.20% | -0.12% | | Long-term Borrowings | 569,924,000.00 | 4.56% | 339,111,929.51 | 2.70% | 1.86% | | Trading Financial Assets | 542,302,839.28 | 4.34% | 375,115,884.54 | 2.99% | 1.35% | - The company's total assets at the end of the reporting period were RMB 12.486 billion, a slight decrease of 0.45% from the end of the previous year[24] - The company's restricted cash and bank balances at period-end were RMB 38,268,060.95, primarily for frozen funds and deposits[205] - The company has no significant overseas assets[201] 6. Analysis of Investment Status This section analyzes the company's investment status, showing a significant year-on-year decrease of 96.67% in total investment during the reporting period, with no major equity or non-equity investments, but an increase in fair value measured financial assets, primarily funds and wealth management products Changes in Investment Amount During the Reporting Period | Indicator | Investment Amount (RMB) in Current Period | Investment Amount (RMB) in Prior Year Period | Change Rate | | :--- | :--- | :--- | :--- | | Total Investment | 1,697,940.15 | 50,948,396.51 | -96.67% | Fair Value Measured Financial Assets at Period-End | Asset Category | Period-End Amount (RMB) | Source of Funds | | :--- | :--- | :--- | | Funds | 724,681,107.65 | Own Funds | | Stocks | 23,646,840.60 | Own Funds | | Other - Unlisted Equity Investments | 85,691,613.92 | Own Funds | | Other - Other Equity Instrument Investments | 182,751,326.01 | Own Funds | | Other - Wealth Management Products | 542,302,839.28 | Own Funds | | Total | 1,559,073,727.46 | -- | - Entrusted wealth management transactions during the reporting period amounted to RMB 1.014 billion, with an outstanding balance of RMB 539.9553 million[212] - The company had no derivative investments or entrusted loans during the reporting period[215][216] 7. Significant Asset and Equity Disposals The company did not undertake any significant asset or equity disposals during the reporting period - The company did not dispose of significant assets during the reporting period[217] - The company did not dispose of significant equity during the reporting period[218] 8. Analysis of Major Holding and Participating Companies This section discloses the financial information of the company's major subsidiaries, BGI Biological Technology (Wuhan) Co., Ltd. and BGI Health (HK) Co., Ltd., and lists five subsidiaries deregistered during the reporting period, primarily due to business adjustments Financial Performance of Major Subsidiaries (RMB 10,000) | Company Name | Main Business | Registered Capital | Total Assets | Net Assets | Operating Revenue | Operating Profit | Net Profit | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | BGI Biological Technology (Wuhan) Co., Ltd. | R&D, production, and sales of biotechnology products, medical devices, etc. | RMB 20 million | 80,488.12 | 61,444.17 | 18,586.46 | 7,542.77 | 7,826.18 | | BGI Health (HK) Co., Ltd. | Providing genomic sequencing and efficient bioinformatics analysis services | USD 188 million | 275,555.68 | 266,026.39 | 17,675.46 | 8,469.27 | 7,259.23 | - During the reporting period, the company deregistered SMARTER INFO COMPANY LIMITED, Nanjing BGI Genomics Technology Co., Ltd., Lvliang BGI Medical Laboratory Co., Ltd., Innomics Inc., and BGI Health Chile SpA, primarily due to business adjustments[219] 9. Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not control any structured entities during the reporting period[220] 10. Risks Faced by the Company and Countermeasures The company faces risks including intensified market competition, industry policy changes, overseas business challenges (export controls, geopolitics), exchange rate fluctuations, intellectual property disputes, supply chain instability, and new product R&D failures, which it addresses through innovation, cost optimization, compliance, diversified supply, IP protection, and R&D mechanism improvements - Intensified market competition leads to pressure on gross margins for routine testing services, which the company addresses through original technological innovation, AI large model applications, and cost optimization[220] - Changes in industry policies may affect business operations, and the company closely monitors policy dynamics, strengthens compliance management, and accelerates qualification applications[221] - Overseas business faces risks from changes in laws and regulations, tariff policies, unfavorable international political and economic situations, and export controls, which the company addresses by adjusting business strategies, deepening customer cooperation, and strengthening data security compliance[222][223][224][225] - Exchange rate fluctuations impact exchange gains and losses, and the company will closely monitor exchange rate trends and utilize foreign exchange hedging tools as appropriate[226] - Intellectual property dispute risks are mitigated by improving intellectual property strategic layout, conducting early warnings before market expansion, and obtaining international certifications[227] - Supply chain risks are reduced through localization, diversified supply, establishing safety stock, and independent technological innovation to decrease reliance on overseas raw materials[228][229] - New product R&D risks are addressed by market-demand-oriented R&D mechanisms, optimizing project management, and accelerating technological upgrades[230][231] - Operational risks due to inherent technical and process limitations are mitigated by increasing R&D investment, optimizing technical precision, applying AI large models, and strengthening training and communication with medical institutions[232] 11. Registration Form for Research, Communication, and Interview Activities During the Reporting Period This section records the company's interactions with institutional investors, including research visits, telephone communications, and online platform exchanges, from February to May 2025, primarily discussing operating performance, AI technology applications in healthcare, and future outlook - During the reporting period, the company hosted multiple institutional investors, including Guolian Securities, BOC Fund, Harvest Fund, CITIC Securities, and Goldman Sachs[233][234] - Key communication topics focused on the company's operating performance, the application of AI technology in healthcare, the company's AI large model applications, and future industry application outlook[233][234] - The company interacted with investors through various channels, including telephone calls, on-site visits, and online platform exchanges[233][234] 12. Formulation and Implementation of Market Value Management System and Valuation Enhancement Plan The company approved its “Market Value Management System” on April 24, 2025, to regulate market value management activities and enhance investment value and shareholder returns, but has not yet disclosed a valuation enhancement plan - The company has formulated the “Market Value Management System” and approved it at the fifth meeting of the fourth board of directors on April 24, 2025[236] - The company has not yet disclosed a valuation enhancement plan[235] 13. Implementation of "Dual Improvement in Quality and Returns" Action Plan The company has not yet disclosed its “Dual Improvement in Quality and Returns” action plan announcement - The company has not yet disclosed its “Dual Improvement in Quality and Returns” action plan announcement[237] Part IV Corporate Governance, Environment, and Society 1. Changes in Directors, Supervisors, and Senior Management There were no changes in the company's directors, supervisors, and senior management during the reporting period - There were no changes in the company's directors, supervisors, and senior management during the reporting period[238] 2. Profit Distribution and Capital Reserve Conversion to Share Capital During the Reporting Period The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for the half-year period[239] 3. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company continued to implement its 2022 Restricted Stock Incentive Plan and Second Phase Employee Stock Ownership Plan during the reporting period, completing the vesting registration for the second vesting period of the initial grant and the first vesting period of the reserved grant, with adjustments to the grant price - The company's 2022 Restricted Stock Incentive Plan's second vesting period for the initial grant and first vesting period for the reserved grant have completed vesting registration, with a total of 2.4955 million shares listed for trading on June 11, 2025[262] - The restricted stock grant price was adjusted from RMB 27.83/share to RMB 27.73/share due to the completion of the 2023 equity distribution[261] - The second lock-up period for the initial grant of the company's Second Phase Employee Stock Ownership Plan expired on June 1, 2025, with unlockable equity shares accounting for 30% of the total equity shares of the initial grant[328] - During the reporting period, the company's Second Phase Employee Stock Ownership Plan incurred amortization expenses of RMB 14.9939 million, impacting its financial position and operating results[271] 4. Environmental Information Disclosure The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law - The company and its major subsidiaries are not included in the list of enterprises required to disclose environmental information by law[273] 5. Social Responsibility The company actively fulfills its social responsibilities by conducting multi-dimensional popular science education and public assistance activities in birth defect prevention and control and tumor prevention and control, including aid for thalassemia patients and gene testing projects for ALS patients, to enhance public health awareness and disease prevention levels - The company conducted multi-dimensional popular science education and free clinic activities during health awareness days such as “National Ear Care Day” and “World Thalassemia Day”[273] - As of June 30, 2025, “Hua Foundation” and “Tianxia Wupin Foundation” have cumulatively assisted 22,655 severe thalassemia public samples, with 829 children successfully finding fully matched donors and over 70 severe thalassemia children successfully undergoing hematopoietic stem cell transplantation[274] - The company, in collaboration with the ALS Mutual Aid Home, continues to provide free whole-genome sequencing and data analysis for ALS patients, upgrading to the CycloneSEQ long-read sequencing platform[274] - The company organized “Community Health Public Welfare Walk” cancer prevention popular science activities during “National Cancer Prevention and Control Week” and invited experts for online colorectal cancer popular science live broadcasts[275] Part V Significant Matters 1. Commitments Fulfilled During the Reporting Period and Overdue Unfulfilled Commitments by the Company's Actual Controller, Shareholders, Related Parties, Acquirers, and Other Committed Parties as of the End of the Reporting Period This section details various commitments made by the company's controlling shareholder, actual controller, and directors, supervisors, and senior management during initial public offerings or refinancing, including share lock-ups, compensation for diluted immediate returns, avoidance of horizontal competition, reduction of related-party transactions, avoidance of social security and housing fund arrears, and property lease defects, with most commitments being fulfilled normally - The share lock-up commitments made by controlling shareholder Shenzhen BGI Genomics Technology Co., Ltd. and actual controller Mr. Wang Jian during the initial public offering were fulfilled on July 14, 2024[277] - The commitments made by the company, controlling shareholder, and directors, supervisors, and senior management regarding compensation for diluted immediate returns are being fulfilled normally[278] - The commitments made by the controlling shareholder and actual controller regarding the avoidance of horizontal competition and the avoidance or reduction of related-party transactions are being fulfilled normally[281][282][283] - The commitments made by the company's controlling shareholder and actual controller regarding the avoidance of arrears in employee social security and housing provident funds and property lease defects are being fulfilled normally[283][284] 2. Non-Operating Funds Occupied by Controlling Shareholders and Other Related Parties from the Listed Company The company reported no non-operating funds occupied by controlling shareholders and other related parties during the reporting period - The company reported no non-operating funds occupied by controlling shareholders and other related parties during the reporting period[286] 3. Irregular External Guarantees The company had no irregular external guarantees during the reporting period - The company had no irregular external guarantees during the reporting period[287] 4. Appointment and Dismissal of Accounting Firms The company's semi-annual report was not audited - The company's semi-annual report was not audited[288] 5. Explanations by the Board of Directors, Supervisory Board, and Audit Committee on "Non-Standard Audit Reports" for the Current Period The company had no non-standard audit reports during the reporting period - The company had no non-standard audit reports during the reporting period[289] 6. Explanations by the Board of Directors on "Non-Standard Audit Reports" for the Previous Year The company had no non-standard audit reports during the reporting period - The company had no non-standard audit reports during the reporting period[289] 7. Bankruptcy and Reorganization Matters The company had no bankruptcy and reorganization matters during the reporting period - The company had no bankruptcy and reorganization matters during the reporting period[289] 8. Litigation Matters The company had no significant litigation or arbitration matters during the reporting period, but multiple other litigation matters accumulated to reach the disclosure threshold, involving medical malpractice, labor contracts, sales contracts, and equity repurchase disputes, with some cases concluded and fulfilled, and others still pending - The company had no significant litigation or arbitration matters during the reporting period[290] - As of May 28, 2024, the cumulative amount involved in litigation and arbitration matters for the company and its consolidated subsidiaries over the past twelve months accounted for 12.20% of the company's latest audited net assets, reaching the disclosure threshold[291] - Four arbitration cases involving equity repurchase disputes have been concluded and fulfilled, with a total subject amount of RMB 725,983,580.81[297] - Regarding a contract dispute with Supplier 1, the first-instance judgment ordered BGI Biological Technology (Wuhan) Co., Ltd. to pay a total of RMB 79,231,139.00 in specific reagent kit commissions, and the case is currently in second-instance appeal[295] 9. Penalties and Rectification The company had no penalties or rectification situations during the reporting period - The company had no penalties or rectification situations during the reporting period[299] 10. Integrity Status of the Company, its Controlling Shareholder, and Actual Controller During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity, with no unfulfilled effective court judgments or large overdue debts - During the reporting period, the company, its controlling shareholder, and actual controller maintained good integrity[300] 11. Significant Related-Party Transactions This section discloses the company's related-party transactions in daily operations, asset or equity acquisitions/disposals, joint external investments, and creditor-debtor relationships. During the reporting period, the company had significant daily related-party transactions for purchasing goods/receiving services with MGI Tech and its subsidiaries and waived its priority subscription right for the capital increase of associate company Hemu Gene Related-Party Transactions Related to Daily Operations (Purchase of Goods/Receipt of Services) | Related Party | Related Transaction Content | Related Transaction Amount (RMB 10,000) | % of Similar Transactions | Approved Transaction Limit (RMB 10,000) | | :--- | :--- | :--- | :--- | :--- | | MGI Tech and its subsidiaries | Equipment, materials, after-sales service, after-sales authorization, etc. | 28,046.24 | 31.58% | 73,609.00 | - The company had no related-party transactions involving asset or equity acquisitions/disposals, joint external investments, or related-party creditor-debtor relationships during the reporting period[302][303][304] - The company waived its priority subscription right for the capital increase of its associate company, Shenzhen Hemu Gene Biotechnology Co., Ltd., resulting in a decrease in its shareholding from 13.04% to 12.33%[307] 12. Significant Contracts and Their Performance The company had no entrustment, contracting, or leasing matters during the reporting period, but had significant guarantees for subsidiaries and a major operating contract with National Unified Procurement Company - The company had no entrustment, contracting, or leasing situations during the reporting period[309][310][311] Company Guarantees for Subsidiaries (RMB 10,000) | Name of Guaranteed Party | Guarantee Limit | Actual Guarantee Amount | | :--- | :--- | :--- | | BGI Health (HK) Co., Ltd. | 33,610 | 0 | | Qingdao Qingxi BGI Genomics Co., Ltd. | 70,000 | 70,000 | | Wuhan BGI Medical Laboratory Co., Ltd. | 18,000 | 5,000 | | BGI Biological Technology (Wuhan) Co., Ltd. | 3,000 | 0 | | Wuhan BGI Medical Laboratory Co., Ltd. | 5,000 | 0 | | BGI Health (HK) Co., Ltd. | 1,000 | 0 | | Qingdao Qingxi BGI Genomics Co., Ltd. | 20,000 | 0 | | Total Approved Guarantee Limit for Subsidiaries at Period-End | 80,610 | -- | | Total Actual Guarantee Balance for Subsidiaries at Period-End | -- | 5,000 | - The total amount of the significant operating contract signed with National Unified Procurement Company is USD 524.3738 million, with a performance progress of 98.68% and cumulative recognized sales revenue of USD 517.4594 million[318] - The company had no other significant contracts during the reporting period[319] 13. Explanation of Other Significant Matters This section explains the equity pledge and reduction by the company's controlling shareholder and its concerted parties, as well as the progress of the company's equity incentive plan and employee stock ownership plan - As of the report disclosure date, the company's controlling shareholder BGI Holdings and its concerted parties have cumulatively pledged 103.75 million shares, accounting for 70.22% of their current holdings and 24.80% of the company's total share capital[322] - Controlling shareholder BGI Holdings cumulatively reduced its holdings by 7.4883 million shares through block trades, accounting for 1.8008% of the company's total share capital, due to funding needs arising from upper-level equity structure adjustments[324] - The second vesting period for the initial grant and the first vesting period for the reserved grant of the company's 2022 Restricted Stock Incentive Plan have been completed, with a total of 2.4955 million shares listed for trading on June 11, 2025[327] - The second lock-up period for the initial grant of the company's Second Phase Employee Stock Ownership Plan expired on June 1, 2025[328] - The company's registered address has changed to 8 South 1-1, Building B, BGI Time-Space Center, No. 9 Yunhua Road, Binhai Community, Meisha Street, Yantian District, Shenzhen, and the industrial and commercial change registration and amendment to the “Articles of Association” have been completed[330] 14. Significant Matters of Company Subsidiaries The company had no significant matters concerning its subsidiaries during the reporting period - The company had no significant matters concerning its subsidiaries during the reporting period[331] Part VI Share Changes and Shareholder Information 1. Share Changes During the reporting period, the company's total share capital increased by 2,495,500 shares due to the vesting of the 2022 Restricted Stock Incentive Plan's initial grant (second vesting period) and reserved grant (first vesting period), affecting both restricted and unrestricted shares, with the change approved and listed for trading on June 11, 2025, impacting EPS and ROE Share Changes (Shares) | Item | Quantity Before Change | Proportion Before Change | Change (Increase/Decrease) | Quantity After Change | Proportion After Change | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 2,261,550 | 0.54% | 9,000 | 2,270,550 | 0.54% | | II. Unrestricted Shares | 413,560,025 | 99.46% | 2,486,500 | 416,046,525 | 99.46% | | III. Total Shares | 415,821,575 | 100.00% | 2,495,500 | 418,317,075 | 100.00% | - Share changes primarily resulted from the vesting of the 2022 Restricted Stock Incentive Plan's initial grant (second vesting period) and reserved grant (first vesting period, involving the directed issuance of 2,495,500 RMB A-shares to incentive recipients[335] - The 2,495,500 vested shares were listed for trading on June 11, 2025, increasing the company's total share capital from 415,821,575 shares to 418,317,075 shares[337] - The share change will dilute the company's basic earnings per share and return on net assets, with fully diluted earnings per share calculated at -RMB 2.1890/share based on the new share capital[338] Changes in Restricted Shares (Shares) | Shareholder Name | Restricted Shares at Beginning of Period | Shares Unrestricted in Current Period | Shares Restricted in Current Period | Restricted Shares at End of Period | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Jian | 1,903,350 | 0 | 0 | 1,903,350 | Directors, Supervisors, Senior Management Lock-up | | Zhao Lijian | 181,800 | 0 | 0 | 181,800 | Directors, Supervisors, Senior Management Lock-up | | Li Ning | 91,950 | 0 | 0 | 91,950 | Directors, Supervisors, Senior Management Lock-up | | Wang Yujue | 37,575 | 0 | 0 | 37,575 | Directors, Supervisors, Senior Management Lock-up | | Hu Yujie | 2,625 | 0 | 0 | 2,625 | Directors, Supervisors, Senior Management Lock-up | | Xu Qian | 44,250 | 0 | 0 | 44,250 | Directors, Supervisors, Senior Management Lock-up | | Yang Yun | 0 | 0 | 9,000 | 9,000 | Directors, Supervisors, Senior Management Lock-up | | Total | 2,261,550 | 0 | 9,000 | 2,270,550 | -- | 2. Securities Issuance and Listing The company, due to the vesting of its 2022 Restricted Stock Incentive Plan, issued and listed 2,495,500 RMB A-shares on June 11, 2025, at an issue price of RMB 27.73/share Securities Issuance During the Reporting Period | Stock Name | Issue Date | Issue Price (or Interest Rate) | Issue Quantity | Listing Date | Quantity Approved for Listing | | :--- | :--- | :--- | :--- | :--- | :--- | | RMB A-shares | 2025年06月11日 | 27.73 | 2,495,500 | 2025年06月11日 | 2,495,500 | - This issuance is due to the vesting of the 2022 Restricted Stock Incentive Plan's initial grant (second vesting period) and reserved grant (first vesting period)[341] 3. Number of Shareholders and Shareholding As of the end of the reporting period, the company had 64,315 common shareholders, with controlling shareholder Shenzhen BGI Genomics Technology Co., Ltd. holding 33.77% of shares, a significant portion of which are pledged - The total number of common shareholders at the end of the reporting period was 64,315[343] Shareholding of Shareholders Holding 5% or More or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Shares Held at Period-End (Shares) | Change During Reporting Period | Restricted Shares Held (Shares) | Unrestricted Shares Held (Shares) | Pledge, Mark, or Freeze Status (Quantity) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shenzhen BGI Genomics Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 33.77% | 141,285,593 | -7,488,300 | 0 | 141,285,593 | Pledged: 98,300,000 | | Shenzhen Shenghua Investment Enterprise (Limited Partnership) | Domestic Non-State-Owned Legal Person | 8.24% | 34,470,455 | 0 | 0 | 34,470,455 | Pledged: 28,300,000 | | Bank of China Co., Ltd. - Huabao CSI Medical ETF | Other | 1.99% | 8,318,642 | -46,731 | 0 | 8,318,642 | N/A: 0 | | Industrial and Commercial Bank of China Co., Ltd. - E Fund ChiNext ETF | Other | 1.46% | 6,112,289 | -323,800 | 0 | 6,112,289 | N/A: 0 | | Bank of China Co., Ltd. - China Merchants Advantage Enterprise Flexible Allocation Mixed Securities Investment Fund | Other | 1.31% | 5,500,000 | 5,500,000 | 0 | 5,500,000 | N/A: 0 | | Shenzhen BGI SanShengYuan Technology Co., Ltd. | Domestic Non-State-Owned Legal Person | 0.94% | 3,935,824 | 0 | 0 | 3,935,824 | N/A: 0 | | Agricultural Bank of China Co., Ltd. - CSI 500 ETF | Other | 0.89% | 3,727,400 | 260,900 | 0 | 3,727,400 | N/A: 0 | | BNP Paribas - Proprietary Funds | Overseas Legal Person | 0.84% | 3,509,457 | 3,484,718 | 0 | 3,509,457 | N/A: 0 | | He Qianxing | Domestic Natural Person | 0.67% | 2,820,936 | 0 | 0 | 2,820,936 | N/A: 0 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 0.62% | 2,579,690 | -509,974 | 0 | 2,579,690 | N/A: 0 | - Shenzhen BGI Genomics Technology Co., Ltd. is the controlling shareholder of Shenzhen BGI SanShengYuan Technology Co., Ltd., and Wang Jian is a director of BGI SanShengYuan[344] 4. Changes in Shareholdings of Directors, Supervisors, and Senior Management During the reporting period, the total shareholdings of the company's directors, supervisors, and senior management slightly increased, primarily due to Vice General Manager Ms. Yang Yun's share increase from the vesting of an equity incentive plan Changes in Shareholdings of Directors, Supervisors, and Senior Management (Shares) | Name | Position | Shares at Beginning of Period | Shares Increased in Current Period | Shares Decreased in Current Period | Shares at End of Period | Restricted Shares Granted at End of Period | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Wang Jian | Chairman | 2,537,800 | 0 | 0 | 2,537,800 | 0 | | Zhao Lijian | Director, General Manager | 242,400 | 0 | 0 | 242,400 | 0 | | Li Ning | Director, Deputy General Manager | 122,600 | 0 | 0 | 122,600 | 0 | | Zhu Shida | Director, Deputy General Manager | 0 | 0 | 0 | 0 | 0 | | Zhang Guocheng | Director | 0 | 0 | 0 | 0 | 0 | | Wang Yujue | Director, Deputy General Manager, CFO | 50,100 | 0 | 0 | 50,100 | 0 | | Du Lan | Independent Director | 0 | 0 | 0 | 0 | 0 | | Yu Lisheng | Independent Director | 0 | 0 | 0 | 0 | 0 | | Hou Zhibo | Independent Director | 0 | 0 | 0 | 0 | 0 | | Liu Siqi | Chairman of Supervisory Board | 0 | 0 | 0 | 0 | 0 | | Zhang Jinfeng | Supervisor | 0 | 0 | 0 | 0 | 0 | | Hu Yujie | Supervisor | 3,500 | 0 | 0 | 3,500 | 0 | | Xu Qian | Deputy General Manager, Board Secretary, Legal Director | 59,000 | 0 | 0 | 59,000 | 0 | | Yang Yun | Deputy General Manager | 0 | 12,000 | 0 | 12,000 | 16,000 | | Li Hao | Deputy General Manager | 0 | 0 | 0 | 0 | 0 | | Total | -- | 3,015,400 | 12,000 | 0 | 3,027,400 | 16,000 | - Ms. Yang Yun's increase in shareholding during this period was due to the vesting of the company's 2022 Restricted Stock Incentive Plan's initial grant[346] 5. Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder remained unchanged during the reporting period[348] - The company's actual controller remained unchanged during the reporting period[348] 6. Preferred Shares The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[349] Part VII Bond-Related Matters Bond-Related Matters The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[351] Part VIII Financial Report 1. Audit Report The company's semi-annual financial report was not audited - The company's semi-annual financial report was not audited[353] 2. Financial Statements This section provides the company's consolidated and parent company balance sheets, income statements, cash flow statements, and statements of changes in owners' equity for the first half of 2025, comprehensively presenting its financial position, operating results, and cash flow - The consolidated balance sheet shows total assets of RMB 12.486 billion and owners' equity attributable to the parent company of RMB 9.255 billion at period-end[357] - The consolidated income statement shows a net profit of RMB 4.1447 million and net profit attributable to parent company shareholders of RMB 5.7782 million for the current period[365] - The consolidated cash flow statement shows net cash flow from operating activities of -RMB 414 million and net cash flow from investing activities of -RMB 533 million[371] 3. Company Basic Information This section details Shenzhen BGI Genomics Co., Ltd.'s historical evolution, changes in registered capital, equity structure, business scope, and information on its parent company and ultimate controlling party - The company was established on July 9, 2010, originally named Shenzhen BGI Health Technology Co., Ltd., later renamed Shenzhen BGI Medical Co., Ltd., and was wholly converted into a joint-stock company in June 2015[397][407] - The company's registered capital gradually increased from an initial RMB 10 million, with total share capital reaching 418,317,075 shares as of June 11, 2025[397][413] - The company underwent multiple equity transfers and capital increases, with controlling shareholder BGI Holdings' shareholding at 33.77% at the end of the reporting period, and the ultimate controlling party being natural person Wang Jian[399][400][402][405][406][408][409][411][413][414] - The company's business scope covers medical research and experimental development, clinical testing services, R&D, manufacturing, wholesale, and retail of medical supplies and devices, trade brokerage and agency, housing leasing, non-residential real estate leasing, and accommodation services[414] 4. Basis of Financial Statement Preparation This section states that the company's financial statements are prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance and the “Compilation Rules for Information Disclosure by Companies Issuing Securities No. 15 - General Provisions for Financial Reports,” and are presented on a going concern basis - Financial statements are prepared in accordance with Accounting Standards for Business Enterprises and “Compilation Rules for Information Disclosure by Companies Issuing Securities No. 15 - General Provisions for Financial Reports”[415] - Financial statements are presented on a going concern basis[416] 5. Significant Accounting Policies and Accounting Estimates This section details the company's significant accounting policies and estimates for financial statement preparation, including financial instruments, inventories, fixed assets, intangible assets, revenue recognition, and share-based payments, along with significan