on the evening of October 27, Shenzhen huada zhizao technology co., ltd. (hereinafter referred to as "huada zhizao", 688114.SH), a leader in the field of domestic gene sequencing equipment, released its report for the third quarter of 2023. the company's operating income in the third quarter was 0.76 billion yuan, down 18.15 from the same period last year (year-on-year). Net profit attributable to shareholders of listed companies was -99.7487 million yuan, down 105.95; non-net profit attributable to shareholders of listed companies was -0.108 billion yuan, down 344.39 year on year.

In the first three quarters as a whole, the company's operating income was 2.203 billion yuan, a year-on-year decrease of 33.01; the net profit attributable to shareholders of listed companies was -0.198 billion yuan, a year-on-year decrease of 109.78; the deduction of non-profit attributable to shareholders of listed companies It was -0.243 billion yuan, a year-on-year decrease of 162.84.

For the first three quarters of this year, revenue fell by more than 30%. BGI said in the report that the main reason was the shrinking demand for automation products during the same period. The sharp decline in net profit was explained by the decline in revenue and the decline in the overall gross profit contribution; the receipt of a net compensation fee of US $0.325 billion paid by the Illumina in the same period last year; the increase in research and development costs due to increased investment in research and development; and the acceleration of overseas market expansion leading to increased investment in localized construction.

R & D data show that the total R & D investment in the first three quarters was 0.642 billion billion yuan, an increase of 22.24 percent over the same period last year; R & D investment accounted for 29.14 percent of operating income, an increase of 13.17 percentage points over the same period last year.

Huada Zhizao's current business is mainly divided into gene sequencer business segment, laboratory automation business segment, and new business segment. In terms of the gene sequencer business segment, revenue continues to grow. The sector achieved revenue of 1.729 billion billion yuan in the first three quarters, up 31.47 year on year. Among them, instruments and equipment increased by 15.63 year-on-year, reagent consumables revenue increased by 42.92 year-on-year, and other revenue increased by 89.64 year-on-year.

According to the report. The gene sequencer business segment achieved revenue growth in all regions. Mainland China and Hong Kong, Macao and Taiwan achieved revenue of 1.083 billion yuan, an increase of 21.19 percent over the same period last year; Asia-Pacific region achieved revenue of 0.288 billion yuan, an increase of 34.12 percent over the same period last year; Europe and Africa achieved revenue of 0.256 billion yuan, an increase of 68.76 percent over the same period last year; and the Americas achieved revenue of 0.101 billion yuan, an increase of 85.83 percent over the same period last year.

Huada Zhizao said that in order to implement the internationalization strategy, the company promoted the localization development, team building and channel layout of the four major regions. In the first three quarters of this year, the company added more than 110 new marketers in all regions of the world, an increase of 18.06 percent over the same period last year, and introduced more than 30 new channel partners, covering a number of applications such as scientific research and clinical practice. As of the end of the reporting period, there have been 7 comprehensive bases including R & D, production and marketing functions, 9 customer experience centers, and a total of more than 2600 customers. At the same time, through the release of the DCS Lab research empowerment program, will promote the company's cutting-edge product technology in the large population genomics, cell groups, space-time groups of the three key areas of localization layout.

in the first three quarters of 2023, Huada Zhizao added more than 640 sets of gene sequencers worldwide. As of the end of the reporting period, the company's cumulative sales and installed capacity exceeded 3100 sets.

BGI focuses on gene sequencers known as "the weight of the country. The company was established in April 2016 and was independently split from the original sequencer plate of Huada Group. This sector originated in 2013, when Huada acquired Complete Genomics Company of the United States to obtain core patented technology, and then set up a sequencer research and development team to implement domestic technology transformation. It is worth noting that after the complete process of introduction, digestion, absorption, and re-innovation, BGI has now become one of the three companies in the world that can independently develop and mass-produce clinical high-throughput gene sequencers. In September 2022, Huada Zhizao was listed on the SSE.