Research On BGI's Profit Model And Its Financial Evaluation

Since entering the 21 st century,the gene industry has developed rapidly and is recognized by the world as the emerging leading industry after IT.The global gene sequencing market is growing rapidly.China and India are the fastest growing countries in the world,and the market growth rate has reached 20%.The largest gene sequencing center in China belongs to BGI,which occupies 20% to 30% of the domestic market share.It is called Tencent in the genetic world and the "unicorn" in the biological world.In recent years,BGI 's operating income has shown a steady growth.The average annual compound growth rate of operating income from 2014 to 2018 is about 22.43%.How should BGI maintain sustainable development in the increasingly fierce industry competition and continuously create profits? The long-term survival and stable development of an enterprise depends to a large extent on the profitability of the enterprise.The enterprise must clearly understand its own profit model and continuously optimize it,so that it can maintain profitable income and develop in the fierce competition.This article draws on the basic theory of the profit model and takes Huada Gene,a leading company in China's gene industry as an example,to study its profit model using the five-element framework of the profit model and based on its financial data from 2014 to 2018 for five years.Profitability,profit quality,profitability and financial evaluation of its profit model,looking for problems in its profit model.Finally,a series of optimization suggestions are put forward for the problems of increasing receivables and serious homogenization competition in the profit model of BGI.