On October 23, MGI Tech Co., Ltd. (688114.SH) released its third-quarter report for 2026.
During the first three quarters, the company achieved operating revenue of 2.15 billion yuan, representing a year-on-year increase of 11.98%, maintaining double-digit growth momentum, with all four major global sales regions recording growth.
On the profit side, after excluding the impact of exchange gains and losses, total profit for the first three quarters was -55 million yuan, a substantial year-on-year reduction in losses of 83.18%. Third-quarter total profit was -4 million yuan, approaching break-even, with profitability continuing to recover.
At the same time, the company's cash-generating capability has steadily improved. Net cash flow from operating activities has been positive for four consecutive quarters, reaching a cumulative 450 million yuan in the first three quarters, a significant turnaround to positive compared with the same period last year, continuously strengthening the funding safety cushion for the company's development.
Looking at the quarterly trend, the reported figures and operating metrics provide mutual confirmation.
The company's revenue has risen quarter by quarter, with Q1 through Q3 of 2026 generating revenue of 585 million yuan, 781 million yuan, and 784 million yuan respectively, maintaining a steady growth rhythm overall.
On the profit side, losses have continued to narrow. Net profit attributable to shareholders improved from -105 million yuan in the first quarter and -52 million yuan in the second quarter to -29.5 million yuan in the third quarter, showing a trend of halving losses each quarter.
The steady improvement in operating quality is attributable to the in-depth implementation of the "Quality Improvement, Efficiency Enhancement, and Reinvestment" action plan.
Through workforce efficiency improvement, R&D focus, and full-cycle management of marketing expenses, the company has achieved coordinated cost reduction alongside high-quality growth in its core business.
Period expenses (excluding financial expenses) for the first three quarters decreased by 8.25% year-on-year, with expense control results continuing to materialize.
The accelerated realization of the "instrument installation driving consumables" commercial closed loop has propelled the consolidated gross margin up 3.84 percentage points year-on-year to 57.9%. The proportion of consumables business, which features high stickiness and high repurchase rates, has continued to increase, driving profitability steadily upward.
On the operational side, while maintaining positive cash flow, the company has continued to intensify collection efforts, resulting in accounts receivable at period-end declining by 17.15% from the beginning of the year, providing solid financial support for the company's technological innovation and global expansion.
Facing the major trend of deep integration between artificial intelligence and life sciences, MGI Tech is accelerating its evolution toward becoming an "AI-driven provider of core tools and data platforms for life sciences." The company will focus on the implementation of physical AI in life science scenarios and advance the research and development of AI for Bio self-evolving laboratory infrastructure.
Looking ahead, MGI Tech will leverage its full-stack self-developed capabilities encompassing "full read-length sequencing + intelligent automation + multi-omics" and its systematic tool matrix to empower diverse tangible scenarios including AI pharmaceuticals, virtual cells, brain-computer interfaces, and protein synthesis, continuously delivering high-quality, stable foundational hardware and data infrastructure to the life sciences industry.
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