On April 26, Shenzhen BGI Genomics Co., Ltd. (referred to as “BGI Genomics”) released its 2024 annual report, showing a “double decrease” in revenue and net profit. The company recorded a net loss of 903 million Chinese yuan, marking the first annual loss since BGI Genomics went public, highlighting the severe challenges it faces in terms of profitability.
According to the report, BGI Genomics’ operating income in 2024 was 3.867 billion yuan, a decrease of 11.10% year-on-year. The net profit attributable to shareholders was a loss of 903 million yuan, a significant drop of 1071.68% year-on-year. This is the first time the company has reported an annual loss since its listing and is the largest loss to date.
As a leading company in China’s gene sequencing industry, BGI Genomics had achieved rapid growth in performance due to the strong demand for nucleic acid testing reagents during the pandemic. However, as the impact of the pandemic gradually subsided, the contribution of related businesses to revenue significantly decreased, becoming one of the main reasons for the decline in performance this time. In addition, uncertainties in the global economic environment, intensified industry competition, and sustained high research and development investment have also put pressure on the company’s profitability.
The 2024 annual report shows that BGI Genomics’ operating income decreased by over 10% year-on-year, reflecting the insufficient growth momentum in the company’s core business areas. The colossal net loss further highlights the challenges the company faces in cost control and business transformation.
In addition to performance pressures, in recent years BGI Genomics has been embroiled in international controversies. In July 2020, the U.S. Department of Commerce placed two subsidiaries of BGI Group — Xinjiang Silk Road BGI Genomics Technology Co., Ltd. and Beijing Liuhe BGI Genomics Technology Co., Ltd. on its entity list, accusing them of “allegedly collecting genetic data from Uyghurs and other Muslim minorities for repression of the Uyghur people.” This move restricted technical cooperation between BGI Genomics entities and U.S. companies, impacting its globalization strategy to some extent. However, BGI Genomics has denied the allegations.
In 2021, Reuters further reported that BGI Genomics has close ties to the Chinese military, with the two parties collaborating on several projects such as respiratory pathogens and brain science research. The report also cited warnings from U.S. government officials, stating that BGI Genomics may be collecting foreign genetic data through the sale of COVID-19 test kits in order to support its own research.
In September 2024, the U.S. House of Representatives passed the Biosecure Act for national security reasons, blacklisting Chinese biotech companies like BGI Genomics and their U.S. subsidiaries.