BGI Genomics Responds to Stock Exchange Probe, Data Differences Arose From Differing Statistics Standards
Dou Shicong
/SOURCE : Yicai
BGI Genomics Responds to Stock Exchange Probe, Data Differences Arose From Differing Statistics Standards

(Yicai Global) Nov. 28 -- China's biggest genome sequencing firm BGI Genomics Co. [SHE:300676] has responded to reports that Shenzhen Stock Exchange will undertake an inquiry into financial data inconsistencies, stating that differences in data in prospectuses were due to different statistics standards, which do not affect the profitability of the company.

The Shenzhen Stock Exchange yesterday sent an inquiry letter to BGI Genomics stating that media reports company exposed inconsistencies and possible fraud related to IPO data.

In the two prospectus versions submitted on 11 December 2015 and 14 March 2017, the production and sales of reproductive health services products for 2014 were inconsistent. The firm also concealed lawsuits filed jointly by 3,000 people against the company.

BGI Genomics states that because genetic testing belongs to emerging industries, sales volume of its products may be affected by factors such as changes to test samples. Changes in sales volume do not affect the company's actual sales, and will not affect the company's profitability and development.

Regarding litigation related to the company's bio-industry development project BGI Genomics said it was neither the plaintiff nor the defendant in the case but acted as a third party. The case ended with the court ruling against the plaintiff, representing a favorable result for BGI Genomics.

BGI Genomics listed on ChiNext, a NASDAQ-style board of the Shenzhen Stock Exchange, on July 14 this year, with issuing price of CNY13.6 (USD2.06) per share. The stock price has soared since then, reaching a record-high of CNY261.99 per share on November 14. However, the company's share price has fallen in the last three sessions, 10 percent, 10 percent and 8.35 percent, respectively. As of yesterday's close, the share price was at CNY190.81 per share.

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Keywords: BGI Genomics , IPO , Shenzhen Stock Exchange , Financial Fraud