Mega Genomics (6667) H2 2024 earnings summary

Executive summary

• FY2024 revenue rose 8.5% YoY to RMB164.2m; net profit increased 50.0% to RMB45.0m, with gross margin up 14.3 percentage points to 72.7%.

• Consumer genetic testing growth and improved product mix drove results, while cancer-screening revenue fell sharply following a phased marketing and product-structure adjustment.

• Trading has been suspended since 1 April 2025; resumption is conditional on completing regulatory-directed investigation, remediation, financial reporting and other requirements.

Financial highlights

• Revenue was RMB164.226m versus RMB151.300m in 2023; gross profit increased 35.2% to RMB119.348m as cost of sales declined 28.8% to RMB44.878m.

• Net profit was RMB45.045m versus RMB30.038m; profit before tax reached RMB53.633m, and basic and diluted EPS was RMB0.22 versus RMB0.14.

• Selling and distribution expenses rose to RMB36.6m; research costs fell 14.3% to RMB19.2m, while other income declined to RMB6.8m, mainly due to lower government grants.

• Net operating cash inflow was RMB57.2m; cash and cash equivalents ended the year at RMB490.3m, down from RMB518.3m.

Outlook and guidance

• Priorities include expanding R&D, advancing IVD registration and clinical validation, and broadening the screening portfolio; colorectal and gastric cancer kits target registration by 2027.

• ApoE and folate-metabolism testing kits received NMPA registration certificates in 2025, following year-end submission for registration acceptance.

• Plans include building a manufacturing laboratory to improve geographic coverage, shorten reporting times and reduce operating costs; acquisitions may be considered prudently for strategic fit.

• Consumer testing market penetration in China is forecast to rise from 0.8% in 2020 to 11.6% in 2030, according to Frost & Sullivan.