Berry Genomics Co Ltd

Shanghai Xukang Gene Technology Co., Ltd. has withdrawn its IPO tutoring filing, ending its listing process after nearly three years of tutoring and eleven progress reports. Xukang Gene signed a listing tutoring agreement with Huatai United Securities on November 24, 2023, and had completed eleven tutoring sessions as of July 2026. The final two tutoring progress reports since 2026 show the company still has shortcomings in internal controls and compliance awareness among directors, supervisors, and senior management. Industry insiders believe that a genetic testing pharmaceutical company voluntarily exiting its IPO most likely reflects that its business model sustainability and profitability still need to be strengthened. Xukang Gene's listing difficulties are not an isolated case. Companies such as Shihui Gene, Annoroad, and Zhenhe Technology have also repeatedly stumbled on their listing paths. Since 2026, two other in vitro diagnostics-related companies, Tianjin Bioaosais Biotechnology Co., Ltd. and Dajia Medical Laboratory Co., Ltd., have also withdrawn their IPO tutoring filings. At the industry level, China's genetic testing market reached approximately 48.7 billion yuan in 2025, with a compound annual growth rate exceeding 30%, and is expected to surpass 100 billion yuan by 2030. However, BGI Genomics posted a net loss attributable to shareholders of 617 million yuan in 2025, Berry Genomics has been loss-making for three consecutive years, and Rightongene has been loss-making for a second consecutive year, leaving the industry overall in a pattern of rising revenue without rising profits.

Berry Genomics released its 2026 interim report, with net profit attributable to the parent company at negative 43.9479 million yuan, a loss expansion of 16.7053 million yuan compared with the same period last year. The company's total operating revenue was 447 million yuan, down 0.15% year-on-year; net cash outflow from operating activities was 102 million yuan. The latest asset-liability ratio was 32.76%, gross margin was 50.53%, ROE was negative 3.09%, and diluted earnings per share was negative 0.12 yuan.

Berry Genomics released its 2026 semi-annual report, showing a net loss attributable to shareholders of about 43.95 million yuan in the first half, a year-on-year decline of 61.32%. The company achieved operating revenue of about 447 million yuan over the same period, down 0.15% year on year. Berry Genomics said the loss was mainly due to an increase in provisions for bad debts on accounts receivable and higher research and development expenses, with increased depreciation of R&D equipment and related spending driving overall R&D expense growth.

A total of 400,000 shares held by Hou Ying, a person acting in concert with the controlling shareholder of Berry Genomics, will be sold through judicial auction, representing 100% of her holdings and 0.11% of the company's total share capital. The auction time has been changed to run from 10 a.m. on September 10, 2026, until 10 a.m. on September 11. If the auction succeeds and the transfer is completed, Hou Ying will no longer hold any shares in the company and will cease to have a concert-party relationship with controlling shareholder Gao Yang. In the first quarter of 2026, Berry Genomics achieved revenue of 210 million yuan and a net loss attributable to the parent company of 19.74 million yuan.

Berry Genomics announced that 400,000 shares held by Hou Ying, a concert party member of the controlling shareholder, will be subject to judicial auction. This represents 100% of her personal holdings and 0.11% of the company's total share capital. The auction stems from a dispute between Hou Ying and Hebei Financial Leasing over a finance lease contract, with the Shijiazhuang Intermediate People's Court ordering the sale of the shares. Previously, Hou Ying's shares had been auctioned multiple times due to a pledge dispute with Guosen Securities. As of July 2025, a cumulative 19.8057 million shares had been auctioned, with total transaction proceeds exceeding 214 million yuan, leaving only these 400,000 shares remaining for sale. If this auction succeeds, Hou Ying's shareholding will be reduced to zero, and her concert party relationship with the actual controller Gao Yang will automatically terminate. Some shares held by the company's actual controller Gao Yang have also been subject to judicial auction. If all transfers are completed, the company faces the risk of a change in controlling shareholder and actual controller. Berry Genomics has recorded losses for five consecutive years since 2021, with cumulative losses approaching 1.2 billion yuan. In the first quarter of 2026, revenue fell 3.46% year-on-year, and the net loss attributable to the parent company was 19.7382 million yuan.

Berry Genomics disclosed its earnings forecast, projecting a net loss attributable to shareholders of 38 million to 56 million yuan for the first half of 2026, compared with a loss of 27.2425 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 37 million to 55 million yuan, versus a loss of 28.5895 million yuan a year earlier. The company attributed the performance change mainly to industry cyclical fluctuations and intensified market competition, along with an increase in bad debt provisions for accounts receivable and slight rises in selling, administrative, and research and development expenses. The company continues to increase R&D investment, advancing multiple research projects, which has driven up overall R&D expenses. Non-recurring gains and losses are estimated at about 1 million yuan, primarily from gains on disposal of fixed assets and government subsidies.