BGI, China’s biggest genetics company, offers genetic testing services around the world and did an IPO on the Shenzhen Stock Exchange in 2017. In 2016, the company recorded revenues of RMB 1.7 billion ($261 million), with a net profit of RMB 350 million ($54 million)–an increase of 28% over the previous year. However, in a country prone to market hype, there are those who view BGI’s dramatic stock performance with a dash of skepticism: The market valuation of BGI is high, mainly because there is room to imagine future developments in the genomics industry. BGI’s future success will hinge on its ability to lead the technology change, and that is no small challenge.
Most of us have heard that the secrets of our lives are hidden in our genes. As the technology advances, genetic tests have become common in certain situations, such as prenatal tests and medical treatment. Also, from genetic test results, professionals can read things like your personality, talent and health risks. Many Chinese companies, though with no intention of becoming “fortune tellers”, are luring people to do genetic tests and offer easy-to-read talent results–and public demand is running high. Startups are receiving millions in funds for making this technology accessible to ordinary people. But is the model of selling cheap genetic testing services sustainable? And are these tests accurate?