On February 10, MGI's stock price surged, closing at a 20% increase in the afternoon session, with each share priced at 66 yuan and a market value of 27.49 billion yuan. On February 7, MGI closed at 55 yuan per share.

Note that on January 27, the closing price of MGI was 39.96 yuan per share.

In just two weeks, MGI's stock price surged 65%, adding 10.8 billion to its market value!

And these two weeks, Illumina's days have not been too good.

On January 27, the closing price of Illumina (NASDAQ: ILMN) was $138.05 per share.

As of the closing on February 7, the price per share was $111.06, with a market value of $17.659 billion compared to the stock price on January 27.

In two weeks, Illumina's stock price dropped by 19.5%, wiping out $4.29 billion in market value, equivalent to RMB 31.3 billion based on the exchange rate of 7.3037.

Always feel that the transfer of wealth is carried out so quietly, and it seems that investors of Illumina are silently transferring 10.8 billion to the investors of MGI...

On February 7, MGI Tech Co., Ltd. announced that the closing price of the company's stock had increased by more than 30% over three consecutive trading days on February 5, February 6, and February 7, 2025, which constitutes an abnormal fluctuation in stock trading.

After self-examination and sending letters to inquire the controlling shareholder and actual controller, as of the date of this announcement, the company has no significant information that should be disclosed but has not been disclosed. The company's current production and operation are normal, and there has been no significant change in production and operation. The company has not found any media reports or market rumors that may have a significant impact on the stock trading price and need clarification or response.

The board confirmed that except for the disclosed matters, the company has no other matters that should be disclosed but have not been disclosed, nor any plans or intentions. Meanwhile, the company reminded investors that the stock price had risen significantly in the short term, and it is expected to incur a loss in the 2024 fiscal year. According to preliminary estimates, the net profit attributable to shareholders is expected to be between -670 million yuan and -554 million yuan, and the net profit after deducting non-recurring gains and losses is expected to be between -730 million yuan and -603 million yuan. Based on the full-year profit forecast and calculated at the highest value, the company's performance in Q4 2024 is expected to narrow its losses. Investors are advised to be mindful of investment risks.

Although MGI said that I don't know why the stock price soared, it was actually a bit modest.

As everyone knows, the reason is that on February 4, 2025, China's Ministry of Commerce announced the inclusion of global gene sequencing giant Illumina, Inc. in the Unreliable Entity List. This event not only signifies a further escalation in Sino-US technology competition but also marks a turning point for accelerating the replacement with domestically produced alternatives in China’s gene sequencing industry.

And Illumina's biggest competitor is MGI!

Public information shows that the gene sequencing industry is characterized by a high concentration, strong competitiveness of leading enterprises, and large market shares. In recent years, Illumina has been the largest monopolist in the industry. However, due to the impact of multiple manufacturers represented by MGI in recent years, Illumina's market share in China has been continuously decreasing.

In 2023, MGI's market share in China has reached 47.3%, breaking Illumina's domestic monopoly.MGI has ranked first in China's new sequencing equipment market share for two consecutive years, surpassing Illumina.