Geneplus bounces back with precision diagnostics after Covid revenue crash
Geneplus Technology, a Chinese biotech firm specialising in precision diagnostics, has seen its revenue recover after a steep decline in 2023. The company, founded in 2015 by entrepreneur Qiao Zhenyu, initially thrived on Covid test kit demand but has since shifted focus back to its core business of oncology and organ health diagnostics.
Last year, its revenue climbed 17.8% to 557 million yuan, with precision diagnostics now making up nearly 80% of total earnings. Yet, financial pressures remain, as the firm holds just 96 million yuan in cash against liabilities of 1.78 billion yuan, pushing it toward a Hong Kong IPO to fund growth.
Geneplus began as a provider of gene sequencing and analysis for medical research. Over time, it expanded into genomics, bioinformatics, and biomarker analysis, building a platform for precision medicine. When the pandemic hit, the company scaled up virus testing, leading to a revenue peak of 1.82 billion yuan in 2022, with profits of 372 million yuan.
But as Covid demand faded in 2023, revenue collapsed by 74% to 473 million yuan. The company then refocused on high-margin precision diagnostics, which now account for 78.3% of its income. This shift has improved gross margins, rising from 41.9% in 2022 to 68.5% in early 2025.
In the first half of 2025, revenue grew another 12.6% to 285 million yuan. Despite this recovery, Geneplus faces liquidity challenges, with cash reserves far below its short-term debts. The planned Hong Kong IPO aims to raise funds for research and market expansion, as investors increasingly demand clearer paths to profitability in the AI healthcare sector.
Geneplus currently holds around 2.7% of China’s precision diagnostics market. Its founder, Qiao Zhenyu, remains the largest shareholder, steering the company toward sustainable growth beyond pandemic-driven gains.
The company’s revenue rebound reflects a successful pivot back to precision diagnostics, though its financial position remains strained. With improved margins and a planned IPO, Geneplus is positioning itself for long-term expansion in genomics and AI-driven healthcare. Investors, however, are now scrutinising profitability more closely than before.
