Mgi Tech Co.,Ltd. (688114.SH) released its 2025 performance report after market close on February 27th. The company achieved annual operating revenue of 2.78 billion yuan and significantly reduced its losses. During the reporting period, the net profit attributable to shareholders was -237 million yuan, representing a year-on-year narrowing of losses by 60.57%. After deducting non-recurring gains and losses, the net profit attributable to shareholders was -378 million yuan, with losses narrowing by 42.11% compared to the previous year.
The company has continuously advanced its series of measures focused on "improving quality, efficiency, and returns," including initiatives to enhance personnel efficiency, sharpen R&D focus, and implement full-cycle management of marketing expenses. As a result, period expenses (excluding financial expenses) decreased by approximately 19% year-on-year, indicating sustained improvement in operational efficiency.
In 2025, Mgi Tech drove steady growth in market share and sales volume through the continuous launch and iterative upgrades of key products. The T1+ sequencer, released in March of that year, gained significant industry recognition and experienced rapid growth in installations. The T7+ sequencer achieved cost reductions and quality improvements, balancing both volume and speed, while key breakthroughs were made in technologies like 7In1. The E25 sequencer obtained NMPA certification in 2025, leading to a substantial year-on-year increase in sales and simultaneous entry into overseas markets such as Europe and Latin America, laying a solid foundation for the popularization of ultra-small sequencers.
The advantages of these technological and product innovations are clearly reflected in the company's leading industry market share. According to the latest investor meeting minutes and based on publicly available bidding information, Mgi Tech achieved a domestic public bidding market share of approximately 70% in 2025, following a major breakthrough in the number of installed units.
Building on the continuous rollout and upgrading of products and its leading market share, Mgi Tech is proactively positioning itself in core frontier technologies of life sciences, consolidating its advantage as a top-tier player in the global life science technology sector. Recently, the company announced plans to acquire two cutting-edge technology platforms: spatial transcriptomics and nanopore sequencing. This move will advance Mgi Tech to become the only upstream life science technology company globally with a complete product matrix covering "full-length sequencing + spatial omics." Its CycloneSEQ nanopore sequencing technology is now comparable to industry leader Oxford Nanopore Technologies (ONT) in areas like single-chip throughput and direct methylation detection. Its Stereo-seq spatial transcriptomics technology significantly outperforms similar products from 10X Genomics in terms of capture area, resolution, and multi-level analysis capabilities. Upon completion of this acquisition, Mgi Tech will effectively become a Chinese equivalent of "Illumina + ONT + 10X Genomics," further highlighting its technological competitiveness in the global high-end market.
In addition to strengthening its technology portfolio, Mgi Tech is simultaneously optimizing its global business layout and undertaking a deep upgrade of its business model. The company plans to transfer 100% of its subsidiary Complete Genomics, Inc. for approximately $50 million. Concurrently, it will upgrade the sequencing technology license granted to the counterparty, adding an exclusive license for StandardMPS technology in the United States and Canada, accompanied by a general license for using StandardMPS technology in conventional sequencing applications within that region. This not only marks a significant step for a Chinese life science company transitioning from "product export" to "technology export" but will also lead to substantial improvement in the company's financial performance and a comprehensive advancement of its global development strategy. The completion of this transaction is expected to inject multiple positive certainties into Mgi Tech's financials, including immediate cash enhancement, a significant reduction in annual losses, and the locking in of long-term stable income, effectively improving the company's profitability quality and cash flow levels.
By benchmarking against the innovative globalization models of leading companies in fields like innovative drugs and new energy, and by efficiently allocating technology assets and precisely focusing R&D resources, Mgi Tech is gradually reshaping and upgrading its valuation logic. Furthermore, facing the industry growth trend where "AI + Healthcare" is unlocking a multi-hundred-billion-yuan market, Mgi Tech, with its dual advantages of full-chain cutting-edge technology and a foundational "AI + Life Sciences" platform, is well-positioned to benefit fully from the industry's explosive growth, potentially significantly shortening its path to profitability.
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