BGI Genomics(SZ:300676) Nan Fang Du Shi Bao·2025-09-23 23:17Core Viewpoint - Shenzhen BGI Genomics Co., Ltd. announced significant equity changes involving its controlling shareholder, BGI Holdings, and its associated parties, indicating potential financial pressure and strategic contraction due to large-scale share reductions by the founder and controlling shareholder [1][2]. Group 1: Shareholder Actions - BGI Holdings, controlled by Wang Jian, transferred 16.73 million shares, accounting for 4.00% of the total share capital, at a price of 44.10 CNY per share, totaling approximately 738 million CNY [1][2]. - Following this transaction, BGI Holdings' shareholding decreased to 29.77%, while Wang Jian directly holds 0.61% and Shenzhen BGI San Sheng Yuan Technology Co., Ltd. holds 0.94%, resulting in a combined shareholding drop from 38.17% to 31.32% [2]. - This marks the second significant reduction in shareholding by BGI Holdings this year, with a total cash-out exceeding 1.1 billion CNY [3]. Group 2: Financial Performance - BGI Genomics reported a nearly 13% decline in revenue for the first half of 2025, with total revenue of 1.631 billion CNY, a year-on-year decrease of 12.82% [4]. - The net profit attributable to shareholders was 5.78 million CNY, down 68.25% year-on-year, while the net loss after excluding non-recurring gains and losses reached 30.49 million CNY, a staggering decline of 2610.77% [4]. - The net cash flow from operating activities was -414 million CNY, a decline of over four times compared to the previous year, indicating worsening cash flow conditions [4]. Group 3: Business Segment Performance - The reproductive health segment generated 426 million CNY, down 29.8%, with non-invasive prenatal genetic testing revenue declining by approximately 35% [4]. - The oncology and chronic disease prevention segment reported 180 million CNY, a decrease of 27.52%, with colorectal cancer testing revenue dropping by 42% [4]. - The multi-omics and synthesis segment achieved 279 million CNY, down 8.3%, affected by a 34% decline in RNA products and a 29% drop in synthesis business due to shrinking markets in Europe and the U.S. and geopolitical influences [4]. Group 4: Market Outlook and Challenges - The only segment showing growth was the precision medicine testing comprehensive solution, with revenue of 696 million CNY, a 4.8% increase, primarily driven by expansion in emerging markets [5]. - Concerns are raised regarding the continuous share reductions by core and significant shareholders amid declining main business performance and profitability [5]. - Industry experts identify three main challenges for BGI Genomics: intensified price competition in traditional businesses, high dependency on partners for new businesses, and growth limitations in overseas markets due to geopolitical factors [5][6].