Chinese genetic sequencing giant BGI recently released its 2025 annual report and the first quarter report of 2026, revealing a challenging financial situation. In 2025, the company’s revenue was 3.705 billion yuan, a 4.18% decrease compared to the previous year, with a net loss attributable to shareholders of 617 million yuan, marking a cumulative loss of over 1.5 billion yuan in two consecutive years. The trend of losses continued into the first quarter of 2026.
According to a report by Shenzhen Business Daily, on the evening of April 24, BGI announced its 2025 annual report, showing a full-year operating income of 3.705 billion yuan, a 4.18% decrease year-on-year. The net profit attributable to shareholders was a loss of 617 million yuan, or 636 million yuan after deducting non-recurring gains and losses.
The annual report disclosed that in 2024, BGI recorded a net loss attributable to shareholders of 903 million yuan, marking the first annual loss since the company went public. Despite a slight reduction in losses in 2025, the downward trend in the company’s core business remains unresolved.
In the 2025 annual report, revenue from reproductive health services was 826 million yuan, a significant decrease of 28.06% year-on-year, with non-invasive prenatal genetic testing revenue dropping by approximately 38%, significantly impacting overall performance. Revenue from tumor and chronic disease prevention and control services was 511 million yuan, down by 18.28%.
Reported by Lanjing News, BGI faced notable pressure on gross profit margin in 2025, as cash flow turned negative. Due to fluctuations in industry demand, intensified competition, and declining prices of terminal services and products, the gross profit margin decreased by 3.97 percentage points to 37.84% year-on-year. The net cash flow from operating activities resulted in a loss of 63.2148 million yuan, a 166.04% decrease compared to the previous year’s positive inflow of 95.7228 million yuan, primarily due to increased cash outflows for purchasing goods and receiving services.
Non-recurring gains and losses were limited in scale, with government subsidies being the main source. The total amount of non-recurring gains and losses for the year was 190.404 million yuan, accounting for 3.09% of the absolute value of the net profit attributable to shareholders. Government subsidies of 161.474 million yuan and gains or losses from entrusting others to invest or manage assets of 115.512 million yuan constituted the main sources, exceeding the total amount, indicating a reclassification adjustment.
In its annual report, BGI admitted that some customer payment cycles were extended during the reporting period, leading to a significant increase in the provision for credit impairment losses in 2025 compared to the same period in the previous year.
In the first quarter of 2026, as reported by Sina Finance, BGI’s net profit attributable to shareholders was a loss of 9.5205 million yuan, a decrease in losses of 81.93% year-on-year. However, the slight improvement in the first quarter is not sufficient to mask the deep-seated risks the company is facing.
Apart from financial pressures, BGI has been embroiled in international controversies in recent years. In July 2020, the U.S. Department of Commerce added two subsidiaries of BGI Group to its entity list, alleging that they were “suspected of forcibly collecting genetic data from Uyghurs and other Muslim minority groups for suppressing the Uyghur people.” This action restricted technical cooperation between BGI-related entities and U.S. enterprises, impacting the company’s globalization strategy.
In September 2024, the U.S. House of Representatives passed the Biosecure Act, placing Chinese biotechnology companies like BGI and their U.S. subsidiaries on a blacklist citing national security concerns. The obstruction of BGI’s international strategy has posed a long-term threat.
As uncertainties loom over BGI’s financial performance and global reputation, the company faces the dual challenges of overcoming financial difficulties and navigating complex international relations.