China’s leading genetic sequencing equipment manufacturer BGI Genomics recently released its 2024 annual report and 2025 first-quarter financial report. The reports indicate that the company incurred a net loss of 601 million Chinese yuan last year and remains in a loss-making position in the first quarter of this year. In addition, BGI Genomics’ affiliate company BGI Group encountered its first annual huge loss since going public.
Shenzhen BGI Genomics Technology Co., Ltd. (referred to as “BGI Genomics”) recently released its 2024 annual report, revealing its latest performance in the field of genetic sequencing equipment. The report shows that the company’s net profit attributable to shareholders of the listed company was a loss of 601 million yuan in 2024, slightly narrowing from a loss of 607 million yuan in the same period of the previous year.
In 2024, BGI Genomics captured a 39% market share in the upstream revenue segment of the genetic sequencing industry in China, securing the top spot in the industry. During the reporting period, the company sold over 1000 sequencing machines, accounting for 63.8% of the domestic market share for new sales installations. This marks the third consecutive year that BGI Genomics has ranked first in terms of new installation share in the Chinese market.
Despite strong performance in the domestic market, BGI Genomics’ overseas business faced complex challenges. In 2024, the company’s overseas revenue from genetic sequencers was 741 million yuan, a 12.66% year-on-year decrease. The report indicates that macro market fluctuations, geopolitical uncertainties, and changes in some large projects significantly impacted the expansion of the overseas business. Especially in the international market, BGI Genomics needs to address the pressure from major competitors like Illumina, Inc. from the United States.
In the first quarter of 2025, BGI Genomics continued to face performance pressure. The report shows that the company achieved revenue of 455 million yuan, a 14.26% year-on-year decrease; and a net loss attributable to shareholders of 133 million yuan, a 33.67% decrease in loss compared to the same period.
It is worth noting that on February 1, 2025, US President Trump signed an executive order imposing a 10% tariff on Chinese imports. The Chinese authorities promptly retaliated by banning the export of genetic sequencers to China from Illumina. This move directly benefited BGI Genomics, as the company’s stock price surged nearly 150% within a month starting from February 5, followed by some pullback.
BGI Genomics is headquartered in Shenzhen and is positioned as a provider of core tools for life sciences, mainly engaged in genetic sequencers and consumables.
According to public information, Wang Jian is the controlling shareholder of BGI Genomics and serves as the company’s chairman. Additionally, Wang Jian is also the chairman of BGI Group. Prior to the listing of BGI Genomics, the related transactions between the two entities have drawn external attention. As they both operate in the genetic sequencing industry chain, with BGI Group focusing on genetic testing services in the midstream, and BGI Genomics in the upstream specializing in genetic sequencers and consumables. Initially, BGI Genomics’ orders mainly came from within the BGI Group system.
At the same time, BGI Group, also within the genetic sequencing industry chain, is facing performance pressure. On April 26, they released their 2024 annual report and 2025 first-quarter financial report.
The annual report shows that BGI Group’s revenue and net profit both declined in 2024, with a massive net profit loss attributable to shareholders of 903 million yuan, a drastic 1071.68% year-on-year decline, marking the largest annual loss since going public.
In the first quarter of 2025, BGI Group’s operating income was 672 million yuan, a decrease of 18.2% year-on-year; net profit attributable to shareholders showed a loss of 52.7 million yuan, a 524.9% decrease year-on-year; and non-net profit attributable to shareholders showed a loss of 63.3 million yuan, a 2879.1% decrease year-on-year.
Apart from the decline in performance, BGI Group has been embroiled in international controversies in recent years. In 2020, the US Department of Commerce listed two subsidiaries of BGI Group on the Entity List due to “allegations of forced collection of Uyghur genetic data.” In September 2024, the US House of Representatives passed the “Biotech Security Act,” blacklisting Chinese biotech companies including BGI Group and its US subsidiaries over national security concerns. These events undoubtedly had an impact on BGI Group’s international business expansion.