(Yicai Global) Jan. 28 -- Chinese diagnostics firm BGI Genomics expects its profit to have increased as much as eight times last year from 2019 due to high global demand for Covid-19 testing kits.

Net profit was likely in the range of CNY2 billion to CNY2.3 billion (USD309.2 million to USD355.6 million), as BGI’s anti-epidemic and precision medicine business grew, the Shenzhen-based company said in an earnings report released yesterday. Revenue probably tripled to between CNY8.2 billion and CNY8.6 billion.

Overseas markets, especially those involved in China’s Belt and Road initiative, made up more than 60 percent of revenues for the first time, driven by the demand for Covid-19 testing as well as reproductive health and cancer screening products.

Despite the earnings gains, shares of BGI Genomics [SHE: 300676] closed 7.4 percent lower at CNY146.99 (USD22.72) each today. The benchmark Shenzhen Component Index lost 3.3 percent.

The company’s labor costs more than doubled to CNY1.4 billion as it paid overtime, rewarded sales staff with bonuses, and put money into employee stock options. Meanwhile, its impairment loss of major assets is expected to have reached as high as CNY250 million (USD38.6 million).

Non-recurring gains and losses, involving government subsidies and donations, equaled as much as CNY65 million (USD10 million) over the year.

Editor: Emmi Laine