On July 26, 2022, China Securities Regulatory Commission approved MGI’s IPO registration on the sci-tech innovation board.

 

On December 7, 2020, MGI’s IPO application was officially accepted by Shanghai Stock Exchange’s sci-tech innovation board. The shares to be issued will not exceed 41,319,475 shares, and will not be less than 10% of the company’s total share capital after the issuance, raising funds of 2.528 billion CNY. In September 2021, MGI was approved by the IPO meeting.

 

Financial condition

 

Financial data shows that from 2018 to 2020, MGI achieved revenue of 1.097 billion CNY, 1.091 billion CNY and 2.78 billion CNY; the net profit attributable to the parent was 124 million CNY, -244 million CNY and 261 million CNY respectively.

 

From January to September 2020, the revenue of MGI in mainland China and outside Hong Kong, Macao and Taiwan areas reached 1.197 billion CNY, accounting for 68.81%; in the same period, the revenue of laboratory automation sector reached 1.272 billion CNY, accounting for 73.41% of revenue ratio, has become an important engine driving the company's performance growth, which was due to the independent and controllable core technology owned by MGI and the concept of focusing on customer and market demand.

 

In addition, around the digitization of life, MGI continues to carry out innovative extensions, and also deploys products in new emerging fields such as remote ultrasonic robots. The multi-faceted business layout provides an important guarantee for the sustainable growth of MGI's performance.

 

MGI has taken the leading position in the domestic high-end equipment segment of life science and technology, behind which is the continuous high-proportion R&D investment and emphasis on independent R&D. From 2017 to January to September 2020, company's R&D expenses continued to increase, respectively 245 million, 254 million, 343 million, and 486 million, accounting for 30.54%, 23.11%, 31.46%, and 27.96% of revenue ratio, leading China’s life science industry.

 

Financing

 

On May 28, 2020, MGI announced the completion of more than $1 billion in Series B financing, led by IDG Capital, CPE. China’s Renaissance, Guofang Capital, Huatai Zijin, Ti-Capital, Shanghai Sailing, Costone Capital, Shanghai Dingfeng, Guotai Junan Innovation Investment, etc. followed the investment, and the previous shareholders CITIC Securities/Goldstone Investment, Green Pine Capital, etc. made additional investment.

 

This was the second round of large-scale financing completed by MGI after the first round of fundraising in May 2019.

 

Shareholding

 

Before the IPO, Wang Jian's Zhizao Holding held 41.15% of the shares, Wang Jian's Huazhan Ventures held 11.15% of the shares; Wang Jian indirectly held 52.3% of the shares, and was the actual controller of the company. Wang Jian is also the chairman of BGI.

 

Shenzhen Jiahua holds 0.47%, Tibet Jiahua holds 0.97%, Tibet Zhiyan holds 3.9%, Shenzhen Yanjia holds 0.02%, and Shenzhen Yanzhi holds 0.24%. In addition, CPE holds 7.1%, Tianjin Kunpeng holds 2.86%, Hubei Science and Technology Investment holds 2.72%, Shanghai Guofang holds 2.59%, Huatai Zhanxin holds 2.27%, and Suzhou Huaxing holds 2.27%.

 

About MGI

Shenzhen MGI Tech Co., Ltd. was established in 2016. It is positioned in the high-end equipment manufacturing industry and focuses on the fields of life science and biotechnology. With the R&D, production and sales of related products such as instruments and equipment, reagents and consumables as its main business, it provides real-time, panoramic, full-life-cycle life digital equipment and system solutions for industries such as precision medicine, agriculture and health. Business layout covers more than 70 countries and regions on six continents, serving more than 1,000 users globally, and has established scientific research, production bases, training and after-sales service centers in many countries and regions around the world, and is one of the world's companies with independent R&D capabilities which is able to produce clinical-grade high-throughput gene sequencer.

 

As of December 31, 2020, MGI had 1,726 employees, of which R&D personnel accounted for about 33%. The company has obtained 380 valid domestic and overseas patents. In the field of gene sequencers, the company has formed a number of original core technologies represented by "DNBSEQ sequencing technology", "regular array chip technology", "sequencer opto-electromechanical system technology"; in library preparation, laboratory automation and other omics fields, core technologies represented by "key library preparation technology", "automated sample processing technology" and "remote ultrasonic diagnosis technology" have been gradually developed. The company has initially built a global business network.

 

MGI is a company "spun off" from the original BGI Group that focuses on the research and development of sequencers. Mr. Wang Jian, the actual controller of the company's largest shareholder is also the largest shareholder of the brother company, the actual controller of BGI, and the company has many directors, executives, and core technicians all from the management and technical elites of BGI Group. Wang Jian, chairman of MGI, holds a total of 52.3% of the shares of MGI through MGI Holdings and Huazhan Venture Capital, and is the actual controller of the company. At the same time, Wang Jian currently holds a 32.99% stake of BGI sci-tech innovation board and is the actual controller of BGI.