Gene Giant BGI Profit Jumps Seven-Fold on Virus-Testing Surge

What’s New: BGI Genomics Co. Ltd., the listed arm of China’ genetics giant BGI Group, reported more than seven-fold growth in net profit for the first half, driven by surging demand for testing kits amid the Covid-19 pandemic.

The Shenzhen-listed company posted net profit of 1.65 billion yuan ($239 million) on 4.1 billion yuan of revenue for the first six months. Profit jumped 734.2% from the same period last year while revenue gained 218%.

Revenue from sales of testing equipment and services for the novel coronavirus topped 3 billion yuan, contributing nearly 73% of total revenue, the company said in its financial report. Analysts project that BGI will continue benefiting from the business as governments around the world seek to expand testing capacity to control the disease while pushing social life back to normal.

The Background: BGI led China’s efforts to develop virus testing kits after the Covid-19 outbreak first emerged in Wuhan and expanded its services overseas.

BGI built “Fire Eye” labs designated for coronavirus testing in more than 10 Chinese cities with combined daily capacity to test 200,000 samples. An additional 58 labs were built in 17 other countries and regions, according to the company. The company said it supplied testing kits for 35 million people outside China by the end of June.

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Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bobsimison@caixin.com)

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