MGI's losses in the first half of the year increased year-on-year, and the second and third generation sequencers will "fight side by side" in the future, attracting attention
2024-08-25
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Shenzhen BGI Intelligent Manufacturing Technology Co., Ltd. (hereinafter referred to as "BMGI", 688114.SH), a leader in the field of domestic gene sequencing equipment, recently disclosed its 2024 semi-annual report, showing that the company's operating income in the first half of this year was 1.209 billion yuan, a year-on-year decrease of 16.23%; the net profit attributable to shareholders of the listed company was -298 million yuan, compared with a loss of 98.027 million yuan in the same period last year; the net cash flow generated by operating activities was -578 million yuan, compared with -707 million yuan in the same period last year.
In the first half of this year, MGI's R&D investment totaled 389 million yuan, accounting for 32.20% of its revenue, an increase of 2.27 percentage points year-on-year.
The report mentioned that the company's net profit attributable to shareholders of listed companies and the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses were negative, and the losses increased by 204.23% and 139.27% year-on-year respectively. The main reasons were: the decline in operating income led to a decline in gross profit contribution; the exchange rates of the US dollar and the euro showed a clear upward trend in the same period last year, the euro exchange rate showed a downward trend in this reporting period, and the US dollar exchange rate was flat, resulting in an increase in exchange losses on foreign currency monetary items held in this reporting period year-on-year.
MGI further mentioned in the report that during the reporting period, the company achieved main business revenue of 1,190.1928 million yuan, a year-on-year decrease of 17.04%, which was due to the influence of various factors such as the macro environment, geopolitics, and market competition.
Among them, the gene sequencer business achieved revenue of 1,004,987,400 yuan, a year-on-year decrease of 8.40%, and a quarter-on-quarter increase of 23.61% in the second quarter. By product type, the gene sequencer business had instrument and equipment revenue of 12.26% year-on-year and a quarter-on-quarter increase of 12.23% in the second quarter; reagent and consumables revenue of 3.82% year-on-year and a quarter-on-quarter increase of 32.36% in the second quarter; laboratory automation business achieved revenue of 96,957,200 yuan, a year-on-year decrease of 16.70% and a quarter-on-quarter increase of 46.47% in the second quarter; new business achieved revenue of 88,248,200 yuan, a year-on-year decrease of 60.09% and a quarter-on-quarter increase of 21.22% in the second quarter.
From a regional perspective, the report mentioned that the company's domestic gene sequencer business-related revenue reached 680.0243 million yuan, a year-on-year decrease of 2.20%, mainly due to fluctuating factors such as project application cycle and fund allocation time; the second quarter increased by 32.63% month-on-month, demonstrating the business resilience of the domestic region and the exemplary effect of the company's business development ballast.
During the reporting period, the company's gene sequencer business achieved overseas revenue of 324.9631 million yuan, a year-on-year decrease of 19.14%, mainly due to the macro environment, geopolitics, and market competition. The report stated that the company is committed to implementing a global strategic layout and localized business strategy. As of the end of the reporting period, the company's gene sequencing business covered 71 countries or regions overseas.
MGI focuses on gene sequencers, which are known as "national treasures". The company was founded in April 2016 and was independently split from the original sequencer segment of BGI Group. This segment originated in 2013, when BGI acquired Complete Genomics (hereinafter referred to as "CG") of the United States, acquired core patented technologies, and subsequently established a sequencer R&D team to implement domestic technology transformation. It is currently one of the three companies in the world that can independently develop and mass-produce clinical high-throughput gene sequencers. In September 2022, MGI was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange.
The company's main products currently cover three business segments: gene sequencer business segment, laboratory automation business segment and new business segment. It is worth noting that in the first half of this year, MGI obtained the global market distribution rights for nanopore sequencer equipment, reagents and consumables and other related products through the signing of a distribution agreement, realizing the full strategic layout of "excitation light", "self-luminescence" and "non-luminescence" gene sequencing products.
Earlier on the evening of June 11, MGI announced that it plans to sign an intellectual property licensing agreement and distribution agreement with related companies of the BGI Group. The key information revealed behind the announcement is that MGI will add spatial omics products and nanopore sequencers to its previous high-throughput sequencing technology. This also means that MGI may become the first company in China to have "second-generation sequencers + third-generation sequencers".
The announcement mentioned that after preliminary calculations by the company, it is expected that the spatiotemporal omics business and single-molecule sequencing business will have a positive impact on the company's revenue and profits. In the long run, this transaction will help the company expand new profit growth points and enhance sustainable operating capabilities. The market is also paying attention to whether MGI can stimulate performance growth after launching the second and third generation sequencers.
Thepaper.cn reporter He Liping
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