Huada Zhizao plans to sell 100% equity of CGI for $50 million

Radar Finance | Feng Xiuyu (Writer) | Li Yihui (Editor)

On February 23, BGI Genomics (Stock Code: 688114) announced that the company, through its wholly owned subsidiary MGI Tech R&D HONG KONG CO., LIMITED, has signed a “Share Purchase Agreement” with Swiss Rockets AG. The company plans to sell 100% equity of its wholly owned subsidiary Complete Genomics, Inc. (CGI), after stripping related assets and liabilities, for approximately $50 million to Swiss Rockets.

At the same time, the company is adjusting the licensing agreement for CoolMPS sequencing technology to include paid licensing for Standard MPS sequencing technology and universal sequencing technology. This transaction is expected to bring significant direct revenue and ongoing cash flow improvements, divest underperforming business units, optimize asset structure, and enhance profitability.

After the transaction is completed, the company will continue to lead the expansion of CoolMPS sequencing technology in the Asia-Pacific and Greater China regions, and will indirectly participate in the North American market through licensing.

According to Tianyancha, BGI Genomics was established on April 13, 2016, with a registered capital of 416.516 million RMB. The legal representative is Mou Feng, and the registered address is the comprehensive building and 2nd floor of Building 11 in the Yantian District, Shenzhen. Its main business involves the research, production, and sales of instruments, equipment, reagents, and consumables related to life sciences and biotechnology.

Currently, the company’s chairman is Wang Jian, the secretary is Peng Huanhuan, with 2,277 employees, and the actual controller is Wang Jian.

The company has stakes in 41 subsidiaries, including MGI AUSTRALIA PTY LTD., MGI TECH UK LTD., Qingdao BGI Genomics Jichuang Technology Co., Ltd., Shenzhen BGI Genomics Software Technology Co., Ltd., Qingdao BGI Genomics Puhui Technology Co., Ltd., and others.

In terms of performance, the company’s revenue for 2022, 2023, and 2024 was 4.231 billion yuan, 2.911 billion yuan, and 3.013 billion yuan, respectively, with year-over-year growth of 7.69%, -31.19%, and 3.48%. Net profit attributable to shareholders was 2.026 billion yuan, -607 million yuan, and -601 million yuan, with year-over-year changes of 319.04%, -129.98%, and 1.10%. During the same period, the company’s asset-liability ratio was 15.74%, 17.83%, and 23.49%.

Regarding risks, Tianyancha data shows the company has 59 internal Tianyan risks, 134 surrounding risks, 3 historical risks, and 592 warning alerts.