Company Overview - BGI Genomics (SZ 300676) announced on November 12 that Mr. Li Ning has resigned from his position as Vice General Manager due to work arrangements, but will continue to serve as a director of the company and hold positions in its controlling subsidiaries [1] Financial Performance - For the fiscal year 2024, BGI Genomics' revenue composition is projected to be 99.36% from the genomics application industry and 0.64% from other businesses [1] Market Position - As of the report date, BGI Genomics has a market capitalization of 20.7 billion yuan [1]

Core Viewpoint - The report outlines the ongoing supervision and assessment of Beijing Novogene Technology Co., Ltd. by CITIC Securities, highlighting the company's operational status, financial performance, and potential risks in the genomic testing industry. Group 1: Ongoing Supervision Overview - CITIC Securities has conducted continuous supervision of Novogene, including reviewing governance documents, financial management, and internal controls [1] - The supervision included interviews with senior management and monitoring media reports related to the company [1] Group 2: Issues and Rectification - No significant issues were found during the supervision period [2] Group 3: Major Risk Factors - Core Competitiveness Risk: Novogene's main business is in genomic testing, with a risk of limited service offerings and dependency on new product development [2] - Operational Risk: The rapid development of high-throughput sequencing technology may lead to increased competition and potential price declines [4] - Financial Risk: The company faces foreign exchange risks due to international sales and purchases, which could impact financial performance [6] - Regulatory Risk: Compliance with health and drug regulatory requirements is critical, and failure to meet these could lead to penalties [8] - Macro Environment Risk: The company is affected by geopolitical factors, such as U.S.-China trade relations, which could impact procurement and operational costs [10] Group 4: Financial Performance - For the first half of 2025, the company reported revenue of approximately 1.04 billion yuan, a 4.36% increase from the previous year [10] - The net profit attributable to shareholders was approximately 62.93 million yuan, showing a decrease of 4.52% compared to the same period last year [10] - The total assets were approximately 3.63 billion yuan, with a slight decrease of 0.22% [11] Group 5: Core Competitiveness - Novogene has established subsidiaries in multiple countries and is expanding its laboratory presence to enhance service quality and operational efficiency [12] - The company has received various certifications, ensuring compliance with international standards and enhancing its competitive edge [12] - Continuous investment in R&D has led to the development of innovative genomic testing technologies, maintaining a strong market position [14] Group 6: R&D Expenditure - R&D expenditure for the first half of 2025 was approximately 62.61 million yuan, representing 6.02% of revenue, an increase from 4.68% in the previous year [16] - The company has filed for multiple patents and software copyrights, indicating ongoing innovation and development efforts [17] Group 7: Compliance and Fund Utilization - The company has established and adhered to a fundraising management system, ensuring compliance with decision-making and disclosure procedures [18] - No violations in the use of raised funds were reported during the supervision period [18]