[Beijing Securities Medical and Biological] Genetic Testing Scientific Research Service Market to Reach 9.08 Billion in 2024, Beijing Stock Exchange New Third Board Genetic Technology Targets Face Opportunities No.7

(Source: Zhu Haibin New Third Board)

• The gene industry technology iteration dominated by second-generation sequencing is the mainstream platform; in 2024, the scale of gene testing in China will reach 9.08 billion yuan.

The gene industry, as a core branch of the biotechnology industry, is essentially about the digitization of life. By analyzing the microscopic mechanisms of life, it provides foundational support for improving the quality of life and enhancing the ecological environment, mainly covering areas such as gene testing, gene synthesis, and gene editing. The industry integrates knowledge from multiple disciplines including molecular biology, medical genetics, genomics, and bioinformatics, incorporating key technologies such as optomechanics, enzyme engineering, sequencing, PCR, and gene chips, exhibiting typical technology-driven characteristics. Since the discovery of the DNA double helix structure in 1953, gene testing technology has continued to evolve, going through development stages such as Sanger sequencing, PCR, gene chips, NGS (Next Generation Sequencing), and single-molecule sequencing. In the past 20 years, the popularization of high-throughput sequencing has significantly reduced sequencing costs and accelerated the industrialization process of the industry. Currently, sequencing technology has formed a coexistence of three generations: first-generation Sanger sequencing has high accuracy but low throughput; second-generation NGS has high throughput and low cost, making it the current mainstream platform; third-generation single-molecule sequencing offers longer read lengths but has higher error rates and has not yet been commercialized on a large scale. PCR technology is widely used for nucleic acid amplification and library preparation, while gene chips occupy an important position in research scenarios due to their advantages of high throughput, low cost, and fast detection. In terms of the industrial chain, gene testing is centered around upstream instrument and reagent suppliers, with companies like Illumina, Thermo Fisher, and BGI having competitive advantages; the midstream consists of testing service providers, and downstream includes developed applications for research services. The Chinese gene testing research service market has maintained rapid growth, with the market size expected to increase from 4.68 billion yuan in 2019 to 9.08 billion yuan in 2024, a compound annual growth rate of 14.2%, and is projected to reach 17.43 billion yuan by 2030. The gene sequencing research service market is expected to grow from 3.37 billion yuan in 2019 to 6.80 billion yuan in 2024, with a compound annual growth rate of 15.1%, and is projected to reach 14.16 billion yuan by 2030. Relevant gene technology stocks on the Beijing Stock Exchange include: Nossland, Sanyuan Gene, and Kangle Weishi; while related stocks on the New Third Board include: Lianchuan Biological, Jima Gene, Gene Technology, Meikang Gene, Yuwei Gene, and Qinke Biological.

• This week, the Beijing Stock Exchange pharmaceutical and biotechnology sector fell by 0.98%, with the biological products sector rising by 1.02%.

At the end of this week, the Beijing Stock Exchange 50 closed at 1396.64 points, with a weekly change of -2.15%. All five major industries on the open-source Beijing Stock Exchange experienced declines this week, among which the pharmaceutical and biotechnology sector had the smallest decline at -0.98%. This week, the high-end equipment sector fell by -2.84%, information technology by -2.82%, chemical new materials by -1.66%, and consumer services by -3.68%.

This week, the pharmaceutical and biotechnology secondary sectors of the open-source Beijing Stock Exchange mostly experienced declines, while the medical beauty and biological products sectors saw increases, with biological products increasing by over 1%. In terms of individual stocks, 25% of pharmaceutical and biotechnology stocks increased this week, while 75% decreased. In terms of secondary industries, over 30% of stocks in medical devices, medical beauty, and biological products rose this week.

The stocks that saw positive weekly increases were: BeiYikang (+8.46%), Nossland (+7.37%), Aishalen (+2.58%), Danna Biological (+1.21%), Wuxi Jinghai (+0.5%), and Jinbo Biological (+0.41%).

• There are 14 pharmaceutical and biotechnology companies in the pipeline, with Lianchuan Biological expected to have a net profit of 60.06 million yuan in 2024.

As of March 13, 2026, there are a total of 163 companies in the pipeline on the Beijing Stock Exchange, of which 14 are related to the pharmaceutical and biotechnology field, with an average revenue scale of 438 million yuan in 2024, and an average net profit scale of 105 million yuan excluding loss-making companies, with 2 being loss-making companies. Among them, Lianchuan Biological is related to the gene technology industry chain. In terms of performance, Lianchuan Biological is expected to achieve revenue of 367 million yuan in 2024, up 27.97% year-on-year; with a net profit attributable to the parent company of 60.0567 million yuan, up 12.28% year-on-year.

Risks include changes in the macroeconomic environment, market competition risks, and data statistical error risks.

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Highlights

Policy empowerment + technology iteration dual drive, AI + medical penetration enhancement

The gene industry is an important branch of the biotechnology industry. Broadly speaking, the essence of the gene industry is to digitize life, thereby studying the microscopic mechanisms behind life representation, laying the foundation for further improving life quality and enhancing the ecological environment.

The gene industry mainly includes areas such as gene testing, gene synthesis, and gene editing. The technological breakthroughs in various gene technology fields and the improvement of industrialization levels have driven the rapid development of the biotechnology industry supported by life science theories and modern biotechnologies, greatly expanding the market space and development prospects of the gene industry itself.

The gene industry integrates molecular biology, medical genetics, genomics, and bioinformatics, covering technologies such as optomechanics, enzyme engineering, sequencing, PCR, and gene chips.

The gene industry constantly evolves driven by technology. Since the discovery of the DNA double helix structure in 1953, the technology surrounding “gene testing” has continuously iterated. Sanger sequencing technology, PCR technology, microarray chip technology, NGS technology (Next Generation Sequencing), and single-molecule sequencing technology have all emerged. After about 40 years of technological advancement, especially in the rapid development of high-throughput sequencing over the last 20 years, sequencing costs have significantly decreased, and gene testing technology has gradually become industrialized. Since the 21st century, the rapid development of modern biotechnology, computer technology, and statistics has allowed for the application of more cutting-edge gene technologies in various practical scenarios.

Gene testing can be categorized into different types based on technological platforms, such as gene sequencing, gene chips, PCR, and molecular hybridization.

Gene sequencing technology originated in the 1970s. Depending on the principles, the development of sequencing technology can be roughly divided into three technical stages: Sanger sequencing, NGS sequencing, and single-molecule sequencing. Each of the three sequencing technologies has its characteristics, complementing each other, and the fields of application are also different. The current sequencing market is characterized by the coexistence of multiple sequencing technologies.

In 1977, Walter Gilbert and Frederick Sanger invented the first-generation sequencing technology and determined the first genomic sequence: a 5,375-base-long phage X174. The principle of the technology involves adding four deoxynucleotides A, T, G, C to the DNA template to be tested, along with four types of dideoxynucleotides. The DNA chain synthesis process terminates upon encountering a dideoxynucleotide, resulting in four groups of nucleotides of different lengths ending with A, T, C, and G, which are then subjected to electrophoresis on a urea-denatured PAGE gel for detection, thus obtaining the DNA base sequence. Sanger sequencing technology has long read lengths, allowing for the acquisition of sequences ranging from 700 to 1,000 bp, with high accuracy of up to 99.99%, but has low throughput and efficiency, and higher costs. Therefore, it is mainly used for low-throughput gene sequencing and for validating NGS sequencing results.

High-throughput sequencing technology adopts a parallel sequencing concept, randomly breaking DNA into countless small fragments, enriching the DNA fragments through library construction, and then identifying bases based on chemical luminescence or nanoball technologies for sequencing. Because this sequencing method requires breaking DNA into small fragments during the library construction phase, and after sequencing, it must be spliced together through bioinformatics, it places high demands on experimental technology and bioinformatics. Compared to traditional sequencing technologies, high-throughput sequencing technology differs fundamentally in terms of sequencing principles, processes, applicable scopes, and outcomes. This method can simultaneously determine sequences for hundreds of thousands to millions of nucleic acid molecules. High-throughput sequencing technology effectively overcomes the disadvantages of high costs, low throughput, and high human resource demands associated with Sanger sequencing technology, greatly promoting fundamental research and clinical applications in genomics due to its high throughput, short time, and high accuracy. Over the past decade, high-throughput sequencing has facilitated numerous scientific discoveries and expanded the application scenarios of gene sequencing, making it the mainstream gene testing platform currently and for a considerable time in the future.

Single-molecule sequencing technology mainly relies on modern optics, polymers, and nanotechnology to distinguish differences in base signals, reading sequence information directly at the single-molecule level. This technology does not require amplification of DNA templates and offers longer read lengths compared to high-throughput sequencing technology; however, its error rate for individual bases is around 1% to 10%, which is higher than that of high-throughput sequencing technology and has not yet achieved large-scale commercial application.

PCR technology is a molecular biology technique used to amplify specific DNA fragments, essentially amplifying trace amounts of nucleic acid sequences. It was initially used in gene cloning and first-generation sequencing, and with the development of NGS technology, PCR has been widely applied in the core library preparation stage and library quality control of NGS.

Gene chips, also known as DNA chips, biochips, or DNA microarrays, are a highly integrated detection method. Gene chips integrate a large number of known sequence probes on the same substrate, and after the sample nucleic acids hybridize with the probes at specific locations on the chip, signals are released. By analyzing these signals, genetic information from biological cells or tissues can be obtained.

Compared to fluorescent quantitative PCR technology, gene chips have the advantages of high throughput and low per-sample detection costs; compared to second-generation sequencing technology, gene chips have the advantages of fast detection speeds, simple data processing, and high detection stability.

Based on specific research applications, gene chips can be subdivided into miRNA gene chips, SNP gene chips, expression profile gene chips, DNA methylation gene chips, and chromatin immunoprecipitation chips, among others.

The preparation methods for gene chips mainly include spotting methods and in situ synthesis methods. In situ synthesized gene chips have high density and good repeatability, but they have high technical barriers. In 1994, the first commercially available gene chip was launched by Affymetrix, followed by Roche Nimblegen, LC Sciences (now Lianchuan Biological’s overseas subsidiary), Agilent, and CustomArray, which successively introduced digital light control, photochemical light control, inkjet printing, and electrochemical gene chips.

As the demand for gene testing continues to grow and gene testing technology progresses, the Chinese gene testing research service market shows a stable growth trend. According to Frost & Sullivan data, from 2019 to 2024, the market size of China’s gene testing research services is expected to grow from 4.68 billion yuan to 9.08 billion yuan, with a compound annual growth rate of 14.2%. It is projected that by 2030, the market size will continue to grow to 17.43 billion yuan, with a compound annual growth rate of 11.5%.

Driven by second-generation sequencing technology, the application fields of gene sequencing are rapidly expanding and becoming increasingly prevalent in research scenarios. The Chinese gene sequencing research service market is showing a stable growth trend. According to Frost & Sullivan data, from 2019 to 2024, the market size of China’s gene sequencing research services is expected to grow from 3.37 billion yuan to 6.80 billion yuan, with a compound annual growth rate of 15.1%. It is projected that by 2030, the market size will continue to grow to 14.16 billion yuan, with a compound annual growth rate of 13.0%.

In terms of the industrial chain, the gene testing industrial chain consists of three links, with the upstream being suppliers of gene sequencing instruments, reagents (including library construction reagents, sequencing reagents, etc.), and other equipment and raw materials. Major participants include Illumina, Thermo Fisher, and BGI, which have strong competitive advantages due to high technical barriers and are difficult to replicate or surpass in the short term.

Currently, among the main applications of gene testing, the maturity of research services is relatively high.

There are a total of three gene technology industry chain-related stocks on the Beijing Stock Exchange: Nossland, Sanyuan Gene, and Kangle Weishi.

There are six gene technology industry chain-related stocks on the New Third Board: Lianchuan Biological, Jima Gene, Gene Technology, Meikang Gene, Yuwei Gene, and Qinke Biological, among which Lianchuan Biological responded to the second round of inquiries from the Beijing Stock Exchange in March 2026; Qinke Biological began accepting guidance from Dongfang Securities regarding the company’s listing on the Shanghai Stock Exchange in February 2026.

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Industry

This week, the Beijing Stock Exchange pharmaceutical and biotechnology sector fell by 0.98%, with biological products rising by 1.02%.

This week (from March 9, 2026, to March 13, 2026, closing), the Beijing Stock Exchange 50 closed at 1396.64 points, with a weekly change of -2.15%; the CSI 300 closed at 4669.14 points, with a weekly change of +0.19%; the ChiNext Index closed at 3310.28 points, with a weekly change of +2.51%; and the STAR 50 closed at 1373.64 points, with a weekly change of -2.88%.

This week, all five major industries on the open-source Beijing Stock Exchange experienced declines, with the pharmaceutical and biotechnology sector having the smallest decline at -0.98%. Additionally, this week, high-end equipment fell by -2.84%, information technology by -2.82%, chemical new materials by -1.66%, and consumer services by -3.68%.

This week, most secondary industries within the pharmaceutical and biotechnology sector on the open-source Beijing Stock Exchange saw declines, while the medical beauty and biological products sectors increased, with biological products rising over 1%. In terms of individual stocks, 25% of pharmaceutical and biotechnology stocks increased this week, while 75% decreased.

In terms of secondary industries, over 30% of stocks in medical devices, medical beauty, and biological products rose this week.

The stocks that saw positive weekly increases were: BeiYikang (+8.46%), Nossland (+7.37%), Aishalen (+2.58%), Danna Biological (+1.21%), Wuxi Jinghai (+0.5%), and Jinbo Biological (+0.41%).

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Summary of Highlights

Summary of highlights for pharmaceutical and biotechnology companies on the Beijing Stock Exchange

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Companies in the Pipeline

Companies in the pharmaceutical and biotechnology sector in the pipeline on the Beijing Stock Exchange

As of March 13, 2026, there are a total of 163 companies in the pipeline on the Beijing Stock Exchange, with 14 related to the pharmaceutical and biotechnology field. The average revenue scale for 2024 is 438 million yuan, and the average net profit scale, excluding loss-making companies, is 105 million yuan, with 2 being loss-making companies. Among them, Lianchuan Biological is related to the gene technology industry chain.

Since its establishment in 2006, Lianchuan Biological has focused on the field of gene technology and has always adhered to the vision of “decoding the life code, writing the life story,” aiming to master and innovate core gene technologies, dedicated to exploring and expanding the application of gene technologies in various scenarios and promoting their eventual industrialization.

The company insists on building product lines around different research objects based on the central dogma of molecular biology in the field of research services, integrating research logic into product logic, and has established four major service lines: translational transcriptomics, epigenetic regulation genomics, microbiology and genomics, and proteomics and metabolomics. The company, based on high-throughput sequencing platforms, PCR technology platforms, gene chip technology platforms, and various sample preservation, nucleic acid extraction, library preparation technologies suitable for different scenarios, can provide comprehensive, flexible, efficient, and adaptable gene testing research technology services for clients. At the same time, the company utilizes its DNA synthesis capabilities to independently produce probes and other gene testing raw materials, effectively reducing costs and increasing efficiency for its research services. Scientific and technological services are an important component of the research system, and the company designs and develops service products that keep pace with scientific frontiers, greatly empowering life sciences and medical research, assisting in the output and transformation of research results.

Currently, the company’s research service business comprehensively covers top universities and research institutes both domestically and internationally, including the Chinese Academy of Sciences, Tsinghua University, Peking University, Zhejiang University, Sun Yat-sen University, Fudan University, Shanghai Jiao Tong University, Stanford University, and Johns Hopkins University. In the last five years, it has assisted clients in publishing over 4,500 papers in international journals, with a cumulative impact factor exceeding 29,000.

Based on its existing research service system, the company is gradually expanding its business scope into the clinical gene testing field. The company has developed a lung cancer gene testing kit with independent core technology based on ultra-multiplex PCR technology, which has obtained a third-class medical device registration certificate. The registered product name is “Human EGFR, BRAF, KRAS, ALK, ROS1 Gene Mutation Joint Testing Kit (Reversible End-terminating Sequencing Method).” The accompanying software for joint use in analyzing gene mutations in non-small cell lung cancer has obtained a second-class medical device registration certificate in Zhejiang Province. This product uses a one-step library construction technology to replace lengthy library construction processes, conducting sensitive or resistance gene mutation detection on tumor tissue samples, effectively identifying potential targeted drug beneficiaries. At the same time, the company is steadily advancing the research and development of multiple tumor gene testing kits. Once these molecular diagnostic reagent products are approved for market and commercial sales, they will become new drivers for the company’s development.

Currently, the company’s products and services mainly provide various types of gene testing research technical services and solutions to universities, research institutions, research hospitals, and biopharmaceutical companies. The service process mainly includes sample preservation, nucleic acid extraction, library preparation, sample testing (machine testing), and data analysis. The deliverable is primarily the data analysis results.

In terms of performance, the company is expected to achieve revenue of 367 million yuan in 2024, up 27.97% year-on-year; with a net profit attributable to the parent company of 60.0567 million yuan, up 12.28% year-on-year.

The company’s service model is primarily based on the second-generation sequencing technology platform, with the main experimental steps including sample preservation, nucleic acid extraction, and library preparation. Each step is fundamental to ensuring the validity and accuracy of the analysis results. Therefore, the company has conducted independent research and technological innovation across multiple experimental stages and established a rigorous quality control system, thereby improving service quality and shortening delivery cycles, ensuring that the entire process and all steps are controllable.

The company is one of the few domestic enterprises that simultaneously master the core technologies of gene “reading” and “writing.” In the field of “writing” genes, namely DNA synthesis, the R&D team led by Dr. Zhou Xiaochuan and Dr. Lang Qiulei has long engaged in research in the DNA synthesis field, striving to explore the path and opportunities for the industrialization of DNA synthesis. Currently, the company has mastered a series of DNA synthesis technologies, establishing a complete synthesis platform that ranges from low-throughput precise synthesis to gene chips and high-throughput DNA synthesis, covering different synthesis scale demands, and has a technical foundation for transitioning from providing midstream gene technology services to supplying basic testing reagents and raw materials in the upstream industrial chain. The company has already utilized its synthesis platform to achieve partial self-supply of library construction reagents, effectively reducing costs and flexibly responding to market demands.

The company masters DNA synthesis technology and continues to conduct research and exploration for industrialization, aligning with the national “14th Five-Year Plan,” which includes genomic research applications and technological innovations in synthetic biology as key areas for scientific advancement. As a participant in the 2018 National Key R&D Program for “Synthetic Biology,” focusing on “High-throughput Deoxyribonucleic Acid (DNA) Synthesis Innovation Technology and Instrument Development,” the company undertakes the task of developing chip synthesis instruments. This project aims to develop domestically innovative synthesis technologies, instruments, and supporting reagents in China. The high-throughput DNA synthesis capability has a high technical barrier, and possessing a foundation for developing high-throughput DNA synthesis instruments and further optimizing innovation capabilities will benefit the company in maintaining its first-mover advantage in the field of DNA synthesis.

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Important Announcements

This week, important announcements from pharmaceutical and biotechnology companies on the Beijing Stock Exchange

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