“Investment Times” reporter Yang Fan
On the evening of April 22, BGI (300676.SZ) released its 2021 annual report and 2022 first quarter report. The company’s operating income in 2021 is 6.766 billion yuan, and the net profit attributable to shareholders of listed companies is 1.462 billion yuan. The company’s first-quarter 2022 results disclosed at the same time show that the company achieved revenue of 1.43 billion yuan and a net profit of 330 million yuan attributable to shareholders of listed companies.
BGI said that due to the decline in the unit price of new crown nucleic acid reagents and detection in the world, as well as changes in the epidemic prevention strategies of some countries and regions, the company has taken the initiative to strategically adjust the new crown-related product structure and supply chain strategy. In 2021, the new crown-related business revenue will be higher than that in 2020. Compared with the high base in the same period, it has decreased. At the same time, in the first quarter of 2022, the company actively participated in the assistance to Hong Kong to fight the epidemic. The settlement progress of some businesses was affected by the epidemic, and no revenue was recognized during the reporting period.
In the past year, under the guidance of long-termism, BGI has not only based on the present, continued to strengthen investment in technology research and development and forward-looking product layout, further expanded the conventional business market, cultivated new performance growth points, and achieved positive operating results, but also focused on In the future, we will deepen the international layout, “consolidate the foundation and strengthen the foundation” for long-term high-quality development, and achieve long-term sustainable growth in performance.
Regular business grew steadily, core products continued to lead
In 2021, BGI will continue to focus on its main business, comprehensively strengthen product development and innovation, and achieve fruitful results. Judging from the operating data of the five business segments, BGI continued to leverage the synergy of each business segment, and related business segments maintained a steady development trend.
In the field of reproductive health, BGI maintains its leading position in the industry benchmark. In 2021, driven by multiple factors such as the increase in testing business, new technology breakthroughs, and product update iterations, the company’s reproductive health business now has an operating income of 1.192 billion yuan, achieving steady year-on-year growth.
It is worth noting that as of the end of 2021, BGI’s non-invasive prenatal genetic testing services have exceeded 10 million. In addition, during the reporting period, the company upgraded Anxinke’s newborn genetic disease gene + metabolic screening products, and deafness disease genetic diagnosis. Clinical solutions and whole-exome detection products, released the CNV-seq intelligent interpretation cloud platform, expanded the localized solution based on PGT-A in the direction of assisted reproduction, and launched a comprehensive solution based on the whole genome .
In response to demographic changes and the increasing infertility rate, assisted reproduction is supported by policies and markets, which is expected to drive the demand for preimplantation testing (PGT) based on NGS technology. BGI has researched and judged the market capacity in advance, and the diversified product layout of the reproductive health business in the whole cycle is expected to gain new growth points.
In the field of tumor prevention and control, with its industry-leading technical level in the clinical application of tumor genetic testing, BGI’s tumor prevention and control business achieved revenue of 380 million yuan, a year-on-year increase of 8.12%. In 2021, BGI will further expand its product layout in the field of gynecological tumors and hematological tumors, and launch Huayanan® endometrial cancer molecular typing and “Huaxuean” leukemia genetic testing. At the same time, the company officially launched Huajianwei® tumor MRD customized detection products in the Chinese market, further consolidating the diversified competitiveness of the company’s tumor prevention and control products.
In the company’s main business area, the infection prevention and control business will achieve revenue of 1.158 billion yuan in 2021, a year-on-year increase of 73.01%, and the PMseq® test sample volume shows a rapid growth trend. By the end of 2021, BGI PMseq® series products have provided testing for nearly 200,000 people. At the same time, the company accelerated the transformation of research and development results, and launched the PMseq Datician pathogen expert analysis system and the PM Easy Doctor pathogenic big data analysis suite, which helped the metagenomic detection technology to be implemented in hospitals.
In the field of multi-omics big data and synthesis, BGI achieved revenue of 642 million yuan, a year-on-year increase of 2.5%. In 2021, BGI will continue to promote the development of gene technology to support clinical scientific research, and won the bid for the procurement project of the Whole Genome Sequencing Program of 100,000 Rare Disease Patients in West China Hospital of Sichuan University. At the same time, important breakthroughs have been made in the research and development of in vitro genome splicing technology, and the in vitro synthesis length exceeds 200kb, which enables the development of synthetic biology.
In the field of comprehensive solutions for precision medical testing, BGI has achieved revenue of 3.382 billion yuan, accounting for 49.99% of revenue, by virtue of its strong R&D capabilities, rich clinical transformation capabilities and high-performance independent platforms. Through years of continuous development, BGI precision medical testing integrates cutting-edge science and technology and traditional medical methods, providing a new comprehensive medical solution throughout the life cycle for the realization of a healthy China, and is expected to empower the global life and health industry in the future.
The steady growth of BGI’s main business is inseparable from its continuous focus on R&D investment. In 2021, BGI has invested a total of 542 million yuan in research and development, and has 825 research and development personnel. As of the end of the reporting period, a total of 531 patents have been authorized, and 742 software copyrights have been obtained for its independent software.
Accelerating the pace of internationalization and deepening the sustainable development of overseas business
As one of the important forces in the global fight against the epidemic, BGI continues to strengthen global market development, meet the dynamic market demand for global epidemic prevention and control through continuous R&D and innovation, and seize the opportunity to build and expand the global precision medicine service system in the post-epidemic era. Product qualification, localization strategic planning, quality system and other dimensions, comprehensively deepen international business expansion and achieve sustainable development of overseas business.
BGI’s integrated and comprehensive solutions represented by the “Huoyan” laboratory help the global fight against the epidemic. By the end of 2021, it has established cooperative relationships with health authorities in more than 30 countries and regions, and has launched nearly 100 “Fire Eye” laboratories overseas. In the future, BGI is expected to rely on the “Huoyan” laboratory platform to provide important support for the sustainable development of the company’s overseas business.
In addition, BGI has implemented the strategy of “front shop, back factory” and established overseas localized IVD production plants, including an IVD plant in Ethiopia, Africa, which obtained ISO 13485 system certification during the reporting period, the first in Ethiopia. An IVD company that has obtained such certification; a Saudi IVD factory is being built in countries along the “Belt and Road”, and is committed to providing regional closed-loop services of public health value.
In line with the implementation of overseas channels, BGI has increased product reserves for overseas expansion of conventional business, and has achieved a comprehensive overseas qualification layout for new crown testing and routine testing products. As of the end of 2021, BGI has 113 overseas medical device qualifications, proposed or participated in A total of 77 standards have been developed at all levels, including 1 “Belt and Road” regional standard. The product strength and global industry influence have been continuously deepened, thus providing sufficient guarantee for overseas business development.
Through this epidemic, more countries and regions have realized the importance of public health localization capacity building and local industrial ecological development, and the new “prevention-oriented” public health infrastructure model is expected to be promoted internationally. As a practitioner of the “prevention first” public health concept and a leading enterprise in the industry, BGI actively summarizes experience and continues to lead technological innovation and industrial breakthroughs in China’s gene industry technology and application, and will create a stable and high-quality long-term development model .Return to Sohu, see more
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