Technology
Ginkgo Bioworks Reports Fourth Quarter and Full Year 2023 Financial Results
Published
3 years agoon
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$251 million of Total revenue in 2023
$139 million in Cell Engineering services revenue, representing 31% growth over 2022
78 new Cell Programs added in 2023, representing 32% growth over 2022 and continued penetration in biopharma
Year-end cash balance of nearly $950 million provides meaningful multi-year runway as we drive towards profitability and begin recognizing benefits from improved platform efficiency
BOSTON, Feb. 29, 2024 /PRNewswire/ — Ginkgo Bioworks Holdings, Inc. (NYSE: DNA, “Ginkgo”), which is building the leading platform for cell programming and biosecurity, today announced its results for the fourth quarter and year ended December 31, 2023. The update, including a webcast slide presentation and supplemental financial information, will be available at investors.ginkgobioworks.com.
“2023 was a breakout year for Ginkgo,” said Jason Kelly, co-founder and CEO of Ginkgo. “We’re working to build a durable platform that fundamentally transforms R&D in biotech. I’m particularly pleased with our growth in biopharma, which represents our largest untapped market – we added several new programs across modalities with large enterprises including Boehringer Ingelheim, Merck, Novo Nordisk, and Pfizer and are seeing strong momentum in pharma going into 2024. I am also thrilled to see a real ecosystem building around Ginkgo – we’re honored by the trust placed in us by the terrific founders of Patch Biosciences, Reverie Labs, and Proof Diagnostics to bring their technologies to customers and by the over 25 inaugural partners in our newly announced Technology Network. We are committed to bringing the best technologies together to support our customers, and we’ve never been better positioned to deliver.”
Recent Business Highlights & Strategic Positioning
Added 78 new Cell Engineering Programs in 2023, representing 32% growth over the prior year periodGinkgo’s Cell Engineering segment generated services revenue, which does not include downstream value share revenue, of $139 million in 2023, a 31% increase versus 2022Ginkgo’s Biosecurity segment generated $108 million of revenue in 2023 as the Biosecurity business shifted to a more recurring model focused on global reach and multiple pathogens to build a long-term biosecurity global infrastructureGinkgo continues to expand its global bioradar network—now in 14 countries and 10 airports—and advance capabilities for multi-target and multimodal biological threat detection, characterization, and forecasting for next-generation biological intelligenceGinkgo is partnering with the Qatar Free Zones Authority (QFZ) and Doha Venture Capital (DVC) to build a Center for Unified Biosecurity Excellence in Doha (CUBE-D), envisioned as the first of several hubs for biosecurity sample and data analysis in our global networkGinkgo is partnering with Illumina, a global leader in DNA sequencing and array-based technologies, to advance localized biosecurity capabilities in countries around the worldDownstream value share – which consists of potential value to Ginkgo from its Cell Engineering customers and includes potential royalties, milestone payments, and equity interests – is an important component of the financial potential of most programs. As of December 31, 2023 Ginkgo has approximately $2.4 billion in aggregate revenue potential from downstream milestone payments alone in addition to royalties.Ginkgo recently announced the launch of its Technology Network of over 25 companies, creating a more integrated approach to biotech R&D. Ginkgo has a long history of integrating diverse technologies to deliver on customers’ complex program goals and believes that customers should not have to choose a technical approach prematurely but should be able to test many approaches in an unbiased way. Ginkgo customers will be able to benefit from the integration of technologies from network partners in their programs, and Ginkgo expects to expand the network based on customer needs and feedback.Ginkgo also announced several acquisitions including Patch Biosciences, Proof Diagnostics and Reverie Labs. These acquisitions are expected to expand Ginkgo’s capabilities in AI and biopharma.
Fourth Quarter 2023 Financial Highlights
Fourth quarter 2023 Total revenue of $35 million, down from $98 million in the comparable prior year period, a decrease of 65% primarily driven by the expected ramp down of K-12 testing in Ginkgo’s Biosecurity segment and the impact of Cell Engineering downstream value share from equity milestones in 2022 that did not recur in 2023Fourth quarter 2023 Cell Engineering services revenue, which does not include downstream value share revenue, of $27 million, down 26% from $36 million in the comparable prior year period. There was no material downstream value share revenue received in the fourth quarter of 2023.Fourth quarter 2023 Biosecurity revenue of $8 million with gross profit margin of 15% is reflective of the early stages of transitioning to a more recurring business modelFourth quarter 2023 Loss from operations of $(178) million (inclusive of stock-based compensation expense of $44 million), compared to Loss from operations of $(231) million in the comparable prior year period (inclusive of stock-based compensation expense of $111 million). Just under half of the stock-based compensation expense relates to the continued GAAP accounting for the modification of restricted stock units issued prior to Ginkgo becoming a public company, as disclosed in our annual report on Form 10-K filed with the SEC on March 13, 2023, and which we expect to continue to ramp down significantly in the coming quarters.Fourth quarter 2023 Adjusted EBITDA of $(96) million, down from $(76) million in the comparable prior year period driven by the decline in Total revenue partially offset by a decline in operating expensesCash and cash equivalents balance as of the end of the fourth quarter of $944 million puts Ginkgo in a strong financial position to pursue its strategic objectives
Full Year 2023 Financial Highlights
Full year 2023 Total revenue of $251 million, down from $478 million in the prior year, a decrease of 47% as Biosecurity revenue transitioned from K-12 testing to a more recurring business modelFull year 2023 Cell Engineering revenue of $144 million remained stable over the prior year, representing 31% growth in services revenue offset by a decrease in downstream value share from equity milestonesFull year 2023 Biosecurity revenue of $108 million, down from $334 million in the prior year, a decrease of 68%, with full year 2023 Biosecurity gross profit margin of 50%Full year 2023 Loss from operations of $(864) million (inclusive of stock-based compensation expense of $235 million), compared to $(2.2) billion (inclusive of stock-based compensation expense of $1.9 billion) in the prior yearFull year 2023 Adjusted EBITDA of $(355) million, down from $(173) million in the prior year
Full Year 2024 Guidance
Ginkgo expects to add 100-120 new Cell Programs to the Cell Engineering platform in 2024Ginkgo expects Total revenue of $215–$235 million in 2024Ginkgo expects Cell Engineering services revenue of $165-185 million in 2024 driven by expected growth in biopharma and government programs. This guidance excludes the impact of any potential downstream value share revenue.Ginkgo expects Biosecurity revenue in 2024 of at least $50 million, representing approximate current contracted backlog, with potential upside from additional opportunities in the pipeline
Conference Call Details
Ginkgo will host a videoconference today, Thursday, February 29, 2024, beginning at 5:30 p.m. ET. The presentation will include an overview of the fourth quarter and full year financial performance, recent business updates, a discussion on Ginkgo’s outlook, as well as a moderated question and answer session.
To ask a question ahead of the presentation, please submit your questions to @Ginkgo on X (hashtag #GinkgoResults) or by sending an e-mail to investors@ginkgobioworks.com.
A webcast link is available on Ginkgo’s Investor Relations website and a replay will be made available following the presentation.
Ginkgo Investor Website: https://investors.ginkgobioworks.com/events/
Audio-Only Dial Ins:
+1 646 876 9923 (New York)
+1 301 715 8592 (Washington DC)
+1 312 626 6799 (Chicago)
+1 669 900 6833 (San Jose)
+1 253 215 8782 (Tacoma)
+1 346 248 7799 (Houston)
+1 408 638 0968 (San Jose)
Webinar ID: 928 9136 7332
If you experience technical difficulties with any of these dial-ins or if you need international dial-in numbers, please visit our web site at https://investors.ginkgobioworks.com/events/ for updated dial-in information.
About Ginkgo Bioworks
Ginkgo Bioworks is the leading horizontal platform for cell programming, providing flexible, end-to-end services that solve challenges for organizations across diverse markets, from food and agriculture to pharmaceuticals to industrial and specialty chemicals. Ginkgo’s biosecurity and public health unit, Concentric by Ginkgo, is building global infrastructure for biosecurity to empower governments, communities, and public health leaders to prevent, detect and respond to a wide variety of biological threats. For more information, visit ginkgobioworks.com and concentricbyginkgo.com, read our blog, or follow us on social media channels such as X (@Ginkgo and @ConcentricByGBW), Instagram (@GinkgoBioworks), Threads (@GinkgoBioworks) or LinkedIn.
Forward-Looking Statements of Ginkgo Bioworks
This press release, the presentation, and the conference call and webcast contain certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our plans, strategies, including with respect to our balance sheet and cash runway, acquisitions, current expectations, operations and anticipated results of operations, both business and financial, including opportunities for increased operational efficiency, our manufacturing capabilities, potential customer success, including successful application of our offerings by our customers, the capabilities and potential operational and financial success of our acquisitions, partnerships and collaborations, and expected timing thereof, expectations with regard to revenue, the nature of such revenue and any related downstream value share associated with such revenue, funding that is contingent upon Ginkgo’s achievement of milestones, expenses, including our stock-based compensation expenses, our full year 2024 outlook, the future security and commercial applications of the BIOINT industry, the expansion, timing and potential capabilities of our bioradar network and the national biodefense strategy, plans to develop and deploy AI tools for biology and biosecurity for both internal use and external release, including the expected timing thereof, and the market environment, all of which are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements, market trends, or industry results to differ materially from those expressed or implied by such forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “can,” “project,” “potential,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to: (i) volatility in the price of Ginkgo’s securities due to a variety of factors, including changes in the competitive and highly regulated industries in which Ginkgo operates and plans to operate, variations in performance across competitors, and changes in laws and regulations affecting Ginkgo’s business, (ii) the ability to implement business plans, forecasts, and other expectations, and to identify and realize additional business opportunities, (iii) the risk of downturns in demand for products using synthetic biology, (iv) the uncertainty regarding the demand for passive monitoring programs and biosecurity services, (v) changes to the biosecurity industry, including due to advancements in technology, emerging competition and evolution in industry demands, standards and regulations, (vi) the outcome of any pending or potential legal proceedings against Ginkgo, (vii) our ability to realize the expected benefits from and the success of our Foundry platform programs, (viii) our ability to successfully develop engineered cells, bioprocesses, data packages or other deliverables, and (ix) the product development or commercialization success of our customers. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Ginkgo’s most recent quarterly report on Form 10-Q filed with the U.S. Securities and Exchange Commission (the “SEC”), and other documents filed by Ginkgo from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Ginkgo assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Ginkgo does not give any assurance that it will achieve its expectations.
Use of Non-GAAP Financial Measures
Certain of the financial measures included in this release, including Adjusted EBITDA, have not been prepared in accordance with generally accepted accounting principles (“GAAP”), and constitute “non-GAAP financial measures” as defined by the SEC. Ginkgo has included these non-GAAP financial measures because it believes they provide an additional tool for investors to use in evaluating Ginkgo’s financial performance and prospects. Due to the nature and/or size of the items being excluded, such items do not reflect future gains, losses, expenses or benefits and are not indicative of our future operating performance. These non-GAAP financial measures are supplemental to, and should not be considered in isolation from, or as an alternative to, financial measures determined in accordance with GAAP. In addition, these non-GAAP financial measures may differ from non-GAAP financial measures with comparable names used by other companies. See the reconciliation below for additional information regarding certain of the non-GAAP financial measures included in this release, including a description of these non-GAAP financial measures and a reconciliation of the historic measures to Ginkgo’s most comparable GAAP financial measures.
Ginkgo Bioworks Contacts:
INVESTOR CONTACT:
investors@ginkgobioworks.com
MEDIA CONTACT:
press@ginkgobioworks.com
Ginkgo Bioworks Holdings, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data, unaudited)
As of December 31,
2023
2022
Assets
Current assets:
Cash and cash equivalents
$ 944,073
$ 1,315,792
Accounts receivable, net
17,157
80,907
Accounts receivable – related parties
742
1,558
Prepaid expenses and other current assets
39,777
51,822
Total current assets
1,001,749
1,450,079
Property, plant and equipment, net
188,193
314,773
Operating lease right-of-use assets
206,801
400,762
Investments
78,565
112,188
Equity method investments
—
1,543
Intangible assets, net
82,741
111,041
Goodwill
49,238
60,210
Other non-current assets
58,055
88,725
Total assets
$ 1,665,342
$ 2,539,321
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$ 9,323
$ 10,451
Deferred revenue
44,486
47,817
Accrued expenses and other current liabilities
110,051
114,694
Total current liabilities
163,860
172,962
Non-current liabilities:
Deferred revenue, net of current portion
158,062
174,767
Operating lease liabilities, non-current
221,835
413,256
Warrant liabilities
5,700
10,868
Other non-current liabilities
18,733
31,191
Total liabilities
568,190
803,044
Stockholders’ equity:
Preferred stock, $0.0001 par value; 200,000 shares authorized; none issued
—
—
Common stock, $0.0001 par value
199
190
Additional paid-in capital
6,385,997
6,136,378
Accumulated deficit
(5,290,528)
(4,397,659)
Accumulated other comprehensive income (loss)
1,484
(2,632)
Total stockholders’ equity
1,097,152
1,736,277
Total liabilities and stockholders’ equity
$ 1,665,342
$ 2,539,321
Ginkgo Bioworks Holdings, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except per share data, unaudited)
Three Months Ended December 31,
Year Ended December 31,
2023
2022
2023
2022
Cell Engineering revenue
$ 26,976
$ 53,257
$ 143,531
$ 143,666
Biosecurity revenue:
Product
—
12,431
28,949
35,455
Service
7,779
32,597
78,975
298,585
Total revenue
34,755
98,285
251,455
477,706
Costs and operating expenses:
Cost of Biosecurity product revenue
—
7,447
7,481
20,646
Cost of Biosecurity service revenue
6,611
22,771
46,524
183,570
Research and development
117,038
177,548
580,621
1,052,643
General and administrative
89,223
121,383
385,025
1,429,799
Impairment of lease assets
—
—
96,210
—
Total operating expenses
212,872
329,149
1,115,861
2,686,658
Loss from operations
(178,117)
(230,864)
(864,406)
(2,208,952)
Other income (expense):
Interest income
13,303
11,441
57,217
20,262
Interest expense
(93)
(106)
(93)
(106)
Loss on equity method investments
(1,119)
10,003
(2,635)
(43,761)
Loss on investments
(10,012)
(13,354)
(54,827)
(53,335)
Change in fair value of warrant liabilities
6,555
28,871
5,168
124,970
(Loss) gain on deconsolidation of subsidiaries
(42,502)
—
(42,502)
31,889
Other income (expense), net
93
6,161
9,138
7,634
Total other income (expense), net
(33,775)
43,016
(28,534)
87,553
Loss before income taxes
(211,892)
(187,848)
(892,940)
(2,121,399)
Income tax benefit
(198)
(14,770)
(71)
(15,027)
Net loss
(211,694)
(173,078)
(892,869)
(2,106,372)
Loss attributable to non-controlling interest
—
2,390
—
(1,443)
Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders
$ (211,694)
$ (175,468)
$ (892,869)
$ (2,104,929)
Net loss per share attributable to Ginkgo Bioworks Holdings, Inc.
common stockholders:
Basic
$ (0.11)
$ (0.09)
$ (0.46)
$ (1.25)
Diluted
$ (0.11)
$ (0.10)
$ (0.46)
$ (1.25)
Weighted average common shares outstanding:
Basic
1,977,708
1,854,952
1,944,420
1,679,061
Diluted
1,978,843
1,856,610
1,944,420
1,679,839
Comprehensive loss:
Net loss
$ (211,694)
$ (173,078)
$ (892,869)
$ (2,106,372)
Other comprehensive loss:
Foreign currency translation adjustment
4,383
5,278
4,116
(917)
Total other comprehensive gain (loss)
4,383
5,278
4,116
(917)
Comprehensive loss
$ (207,311)
$ (167,800)
$ (888,753)
$ (2,107,289)
(1)
R&D and G&A expenses included a significant charge for stock-based compensation expense as a result of the modification of the vesting terms of RSUs and related earnout shares. Total stock-based compensation expense, inclusive of employer payroll taxes, was allocated as follows (in thousands):
Three Months Ended December 31,
Year Ended December 31,
(in thousands)
2023
2022
2023
2022
Research and development
$ 26,775
$ 68,171
$ 148,861
$ 738,821
General and administrative
16,809
43,059
86,047
1,202,099
Total
$ 43,584
$ 111,230
$ 234,908
$ 1,940,920
Ginkgo Bioworks Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands, unaudited)
Year Ended December 31,
2023
2022
Cash flows from operating activities:
Net loss
$ (892,869)
$ (2,106,372)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
70,507
42,552
Stock-based compensation
229,884
1,930,641
Non-cash customer consideration
(1,373)
(34,263)
Loss on equity method investments
2,635
43,761
Loss on investments
54,827
53,335
Change in fair value of notes receivable
2,416
(3,757)
Change in fair value of warrant liabilities
(5,168)
(124,970)
Change in fair value of contingent consideration liability
9,168
(1,262)
Loss (gain) on deconsolidation of subsidiaries
42,502
(31,889)
Impairment of long-lived assets
121,404
—
Deferred income tax benefit
(801)
(14,609)
Loss on disposal of equipment
842
3,091
Non-cash lease expense
28,313
19,082
Non-cash in-process research and development
9,182
1,162
Amortization of finance lease right-of-use assets
1,047
1,871
Non-cash severance and retention bonus expense associated with an acquisition
—
6,152
Other non-cash activity
2,147
283
Changes in operating assets and liabilities:
Accounts receivable
50,068
55,024
Prepaid expenses and other current assets
10,473
(8,523)
Operating lease right-of-use assets
9,275
13,233
Other non-current assets
2,570
921
Accounts payable
(1,183)
(10,844)
Accrued expenses and other current liabilities
16,899
(39,639)
Deferred revenue, current and non-current
(35,917)
(36,417)
Operating lease liabilities, current and non-current
(22,800)
(10,792)
Other non-current liabilities
452
31
Net cash used in operating activities
(295,500)
(252,198)
Cash flows from investing activities:
Purchases of property and equipment
(40,801)
(52,271)
Deconsolidation of subsidiaries – cash
(42,980)
(55,721)
Business acquisitions, net of cash acquired
—
82,367
Asset acquisitions, net of cash acquired
—
(7,639)
Purchases of notes receivable
(350)
(40,000)
Proceeds from notes receivable
—
10,000
Purchase of investment in equity securities
—
(3,691)
Proceeds from sale of equipment
4,428
—
Other
(990)
(439)
Net cash used in investing activities
(80,693)
(67,394)
Cash flows from financing activities:
Proceeds from exercise of stock options
93
240
Taxes paid related to net share settlement of equity awards
(23)
(981)
Principal payments on finance/capital leases and lease financing obligation
(1,295)
(1,237)
Proceeds from public offering, net of issuance costs
—
99,303
Contingent consideration payment
(1,411)
(521)
Payment of equity issuance costs
(580)
(1,467)
Net cash (used in) provided by financing activities
(3,216)
95,337
Effect of foreign exchange rates on cash and cash equivalents
(588)
908
Net decrease in cash, cash equivalents and restricted cash
(379,997)
(223,347)
Cash and cash equivalents, beginning of period
1,315,792
1,550,004
Restricted cash, beginning of period
53,789
42,924
Cash, cash equivalents and restricted cash, beginning of period
1,369,581
1,592,928
Cash and cash equivalents, end of period
944,073
1,315,792
Restricted cash, end of period
45,511
53,789
Cash, cash equivalents and restricted cash, end of period
$ 989,584
$ 1,369,581
Ginkgo Bioworks Holdings, Inc.
Selected Non-GAAP Financial Measures
(in thousands, unaudited)
Three Months Ended December 31,
Year Ended December 31,
(in thousands)
2023
2022
2023
2022
Net loss attributable to Ginkgo Bioworks Holdings, Inc. stockholders
$ (211,694)
$ (175,468)
$ (892,869)
$ (2,104,929)
Interest income
(13,226)
(11,412)
(57,217)
(20,262)
Interest expense
15
77
93
106
Income tax benefit
(198)
(14,770)
(71)
(15,027)
Depreciation and amortization
12,837
15,667
70,507
42,552
EBITDA
(212,266)
(185,906)
(879,557)
(2,097,560)
Stock-based compensation (1)
43,584
111,230
234,908
1,940,920
Impairment of long-lived assets (2)
—
—
121,404
—
Merger and acquisition related expenses (3)
23,663
26,045
70,771
46,229
Loss on investments
10,012
13,354
54,827
53,335
Loss (gain) on deconsolidation of subsidiaries
42,502
—
42,502
(31,889)
Loss on equity method investments (4)
1,119
(7,612)
2,635
45,315
Change in fair value of warrant liabilities
(6,555)
(28,871)
(5,168)
(124,970)
Change in fair value of notes receivable
2,174
(3,924)
2,295
(4,153)
Adjusted EBITDA
$ (95,767)
$ (75,684)
$ (355,383)
$ (172,773)
(1)
For the years ended December 31, 2023 and 2022, includes $5.0 million and $10.3 million, respectively, in related employer payroll taxes.
(2)
For the year ended December 31, 2023, includes $25.2 million impairment loss on lab equipment and $96.2 million impairment loss on a right-of-use asset and the related leasehold improvements associated with an exited Zymergen leased facility.
(3)
Represents transaction and integration costs directly related to mergers and acquisitions, including: (i) due diligence, legal, consulting and accounting fees associated with acquisitions, (ii) post-acquisition employee retention bonuses and severance payments, (iii) the fair value adjustments to contingent consideration liabilities resulting from acquisitions, (iv) acquired intangible assets expensed as in-process research and development, and (v) costs associated with the Zymergen Bankruptcy, as well as securities litigation costs, net of insurance recovery.
(4)
Represents losses on equity method investments under the hypothetical liquidation at book value method, net of losses attributable to non-controlling interests.
Ginkgo Bioworks Holdings, Inc.
Segment Information
(in thousands, unaudited)
Three Months Ended December 31,
Year Ended December 31,
2023
2022
2023
2022
Revenue:
Cell Engineering
$ 26,976
$ 53,257
$ 143,531
$ 143,666
Biosecurity
7,779
45,028
107,924
334,040
Total revenue
34,755
98,285
251,455
477,706
Segment cost of revenue:
Biosecurity
6,611
30,218
54,005
204,216
Segment research and development expense:
Cell Engineering
77,999
95,408
353,493
273,356
Biosecurity
191
590
1,599
1,937
Total segment research and development expense
78,190
95,998
355,092
275,293
Segment general and administrative expense:
Cell Engineering
60,047
63,686
215,263
168,586
Biosecurity
12,652
13,670
55,514
56,353
Total segment general and administrative expense
72,699
77,356
270,777
224,939
Segment operating (loss) income:
Cell Engineering
(111,070)
(105,837)
(425,225)
(298,276)
Biosecurity
(11,675)
550
(3,194)
71,534
Total segment operating loss
(122,745)
(105,287)
(428,419)
(226,742)
Operating expenses not allocated to segments:
Stock-based compensation (1)
43,584
111,230
234,908
1,940,920
Impairment of long-lived assets
—
—
121,404
—
Depreciation and amortization
12,837
15,667
70,507
42,552
Change in fair value of contingent consideration liability
(1,049)
(1,320)
9,168
(1,262)
Loss from operations
$ (178,117)
$ (230,864)
$ (864,406)
$ (2,208,952)
(1)
Includes $5.0 million and $10.3 million in related employer payroll taxes for the years ended December 31, 2023 and 2022, respectively.
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SOURCE Ginkgo Bioworks
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David Ferguson:
This is the Yudu River. One dusk in October, 1934, more than 86,000 soldiers of the Red Army crossed this river and embarked on the Long March, a two-year saga that has left its mark in history.
Yet, lingering here by the river, I am struck by a simple question: If you have faith in a bright future, and reality seems to thwart you at every turn, where do you find the moral strength to keep believing?
Wang Xiaohui:
At dusk on Oct. 17, 1934, an army of more than 86,000 troops gathered along the banks of the Yudu River. Over 800 boats of all sizes floated on the water, bound together with planks collected from villagers’ home gates, timber beams, and even coffin boards reserved for elderly locals. The people of Yudu built this pontoon bridge, determined to help the army led by the Communist Party of China (CPC) cross the river.
At that time, no one knew that the great expedition embarked upon by the banks of the Yudu River would go on to transform China and exert far-reaching influence across the world.
China in the 1920s and 1930s was plagued by chaos and despair.
The Kuomintang (KMT), the ruling party back then, was not capable of unifying the nation, leaving warlords locked in endless fighting. In 1931, Japanese invaders launched an assault on northeastern China, beginning their invasion. Crushed under domestic turbulence and foreign aggression, countless civilians were displaced, with many even starving to death on the streets; in certain regions, severe drought resulted in zero harvests, yet the farmers were forced to pay land taxes assessed for more than a decade into the future.
Amid this turmoil, the only glimmer of hope for the Chinese nation was kindled by the revolution ignited by the Communist Party of China.
The CPC, dedicated to winning liberation for the people and national independence, built contingents of workers’ and peasants’ Red Army troops and revolutionary base areas across the countryside. Impoverished farmers were granted land ownership, as well as unprecedented political dignity. On Nov. 7, 1931, the Chinese Soviet Republic was officially proclaimed in Ruijin, then a small village in southeastern China’s Jiangxi Province, establishing a Soviet system under which workers, peasants and soldiers elected representatives to run regional affairs and make policies.
The communist ideal of a fair society free from exploitation and equality for all blazed like a spark in the darkness; it kindled hopes among impoverished Chinese and became the wellspring of faith that enabled the Red Army — a force made up of poor workers and peasants — to overcome all hardships in the days to come.
Yet, bright as the spark was, it burned thin and fragile at times. Could this flame still endure when the ideals it carried were repeatedly battered by harsh reality?
In September 1933, flocks of warplanes clouded the skies over the Red Army’s revolutionary base areas. By then, Japanese invaders were steadily advancing towards North China, but Chiang Kai-shek’s KMT turned a blind eye to the looming national crisis. They mobilized over a million troops and more than 200 aircraft to launch a massive offensive at the Red Army’s base areas. Over the previous three years, Chiang Kai-shek had mounted four major military “encirclement” campaigns aimed at exterminating the Red Army, but all ended in failure. He was desperate for a pivotal victory to restore his prestige and to wipe out the CPC and the Red Army.
At the time, the commander of the Red Army abandoned mobile warfare tactics pioneered by Mao Zedong and other commanders, opting instead for rigid positional warfare involving conventional head-on clashes. But the reality was, some Red Army units didn’t even possess a single light machine gun; how could they confront the heavily-armed KMT army head-on?
Zhong Ming, a Red Army medic, could never erase the memories of gravely wounded soldiers being carried to his aid station. He remembered how a soldier whose chest was blown open begged his comrades to end his life. At the frontline, a whole battalion of Red Army soldiers religiously followed orders to defend crude earth-and-wood bunkers, but under the constant barrage of KMT artillery and airstrikes, every soldier in the battalion laid down their lives; not a single man survived.
What’s more heart-wrenching is that no matter how fearlessly the Red Army fought, the steep imbalance in military strength, paired with erroneous military command led to irreversible losses. By October 1934, the KMT’s iron-clad encirclement closed menacingly around Ruijin.
Faced with this dead-end, what decision would you make?
This stood as the most agonizing decision for the Red Army. The biggest challenge lay not in sacrificing one’s life for an ideal, but in finding a way to keep the revolutionary cause alive.
To stay meant defeat — the Red Army had no room to maneuver within the Central Revolutionary Base Area. To break through the encirclement, however slim the odds, offered a fighting chance. Preserving the Red Army as a living force mattered much more than clinging to isolated strongholds. Where the spark survives, the path ahead remains lit.
The air already turned chilly in October. Units of the Central Red Army assembled in Yudu to prepare for a strategic shift. The plan was kept strictly classified; none of the soldiers knew they were evacuating the base areas, only sensing an unusual vibe.
At dusk on Oct. 17, crowds lined up at the Yudu riverbank. Tens of thousands of villagers flocked from every corner to see the Red Army off. They walked alongside the marching columns, slipping food like eggs and glutinous rice balls into the soldiers’ pockets, praying for their swift homecoming.
The main force of the Central Red Army set off. Within days, they left behind revolutionary base areas where they had survived, grown and taken root. No one anticipated that the journey they embarked on would become the Long March, a trek spanning over 10 provinces. Still less could anyone imagine that this journey would ultimately pave the way for a brand-new China.
Looking back on this chapter of history, many claim that the Red Army only set out on this expedition because the enemies left them no other choice. To a degree, yes, the Long March was indeed a forced strategic shift, yet this fact does nothing to diminish its greatness and glory.
The ordinary Red Army soldiers had no idea how far they would march, or where they were heading. But they clung firmly to their founding mission: to deliver liberation for the people and independence to the nation. This unswerving conviction kept them from disintegrating through countless perils, sustaining them as they marched into the unknown with resolve.
David Ferguson:
I now realize that faith and ideals untested by harsh reality may have no true substance.
Since its founding, the Communist Party of China has always upheld the realization of communism as its fundamental goal. Despite devastating losses and extreme adversity, the Red Army continued to press forward resolutely and never faltered. Its inner strength came from an unshakable belief in the cause, an unwavering commitment to the founding aspiration, and a profound sense of mission. The Red Army was never fleeing pursuers in search of safety; it was marching forward to a future in which it had a steadfast belief.
Wang Xiaohui:
The Long March went on for two years. The Red Army trekked 25,000 li across some of China’s harshest terrain, but they kept their heads high, seeking hope amid despair and marching towards light through unending darkness. The lofty ideals and sense of mission they upheld have also become the torch that guides generations of CPC members in the following centennial, tempering them into steel as they press forward unswervingly toward national rejuvenation.
That spark lit along the Yudu River has never dimmed since.
China Mosaic
http://www.china.org.cn/video/node_7230027.htm
Faith: The Spark Born by the Yudu Riverside
http://www.china.org.cn/2026-10/16/content_118736835.shtml
View original content to download multimedia:https://www.prnewswire.com/news-releases/faith-the-spark-born-by-the-yudu-riverside-302911977.html
SOURCE China.org.cn
Technology
Linktel Technologies Highlights Breakthrough 1.6T LPO Performance & Strong Market Pull at OCP 2026
Published
9 hours agoon
October 18, 2026By
SAN JOSE, Calif., Oct. 18, 2026 /PRNewswire/ — At the recent 2026 OCP Global Summit, Linktel Technologies showcased its cutting-edge optical interconnect portfolios engineered specifically for next-generation AI computing networks. Among the heavy lineup, Linktel’s 1.6T Linear Pluggable Optics (LPO) solutions commanded immense industry attention, drawing heavy customer interest for their unprecedented energy efficiency, ultra-low latency, and supply-chain resilience.
Spotlight: 1.6T LPO Performance & High Customer Traction
AI data centers face immense scaling pressures, demanding higher bandwidth densities with tighter thermal and power budgets. Linktel’s 1.6T LPO solutions—highlighted by the 1.6T LPO 2DR4—delivered standout performance metrics that captured the spotlight at the summit:
Ultra-Low Power Consumption: Operates with power consumption as low as an impressive 10W, drastically mitigating data center cooling and power loads.Minimal Latency: Features a linear optics architecture that cuts down signal processing delays, making it a critical asset for high-performance AI scale-out fabrics.Enhanced Supply-Chain Resilience: Eliminating the optical DSP mitigates component choke points, ensuring robust scalability for mass deployments.Proven Interoperability: Following its breakthrough performance and multi-switch platform interoperability at the early September 2026 1.6T LPO-MSA Plugfest, Linktel has laid a solid foundation for the 200G-per-wavelength ecosystem.
Surging Market Interest
Throughout OCP 2026, Linktel’s live demonstrations of its 1.6T LPO, LRO, and FRO modules drew crowds of data center architects and industry partners. With volume production already in place, Linktel is fully equipped to meet the exploding market demand for energy-efficient, high-density 1.6T connectivity.
Overview of Other Innovations at OCP 2026
In addition to the heavily requested 1.6T LPO lineup, Linktel showcased two other major high-speed architectural pillars:
12.8T Liquid-Cooled XPO:Featured a live thermal demonstration integrating advanced liquid cooling to guarantee stable operations in high-density AI nodes.As a founding member of the XPO MSA, Linktel is actively scaling XPO series with FRO, LRO, and LPO variants for comprehensive scale-up, scale-out, and scale-across frameworks.6.4T/7.2T NPO Modules:Displayed with covers removed to reveal internal architectural designs supporting both ELS and ILS configurations.Combines compact high density with low power and low latency, backed by an established 6.4T/7.2T NPO roadmap.DMD Technology & Executive Presentation:Linktel Engineer Director Dr. Grace Zhang hosted a heavily attended Executive Session titled “Dispersion Managed Transceiver for Next-Gen AI Fabrics,” detailing cost-effective 800G (20km) and 1.6T (10km) solutions for OCS SuperPOD architectures, as well as the feasibility of 400G per lambda (3km).With its DMD product line already in volume production, Linktel actively calls upon ecosystem partners to join forces in collaborative development. To drive ecosystem maturity, Linktel is open to sharing its U.S.-filed patents, paving the way for industry-wide adoption and advancements in next-gen AI fabrics.
About Linktel Technologies
Linktel Technologies is a global leader in optical transceiver development and manufacturing, supplying high-speed optical I/O connectivity—including pluggable transceivers, optical engines, and ODM/JDM services.
For more information, visit www.linktel.com or follow Linktel Technologies on LinkedIn.
View original content:https://www.prnewswire.com/news-releases/linktel-technologies-highlights-breakthrough-1-6t-lpo-performance–strong-market-pull-at-ocp-2026–302911973.html
SOURCE Linktel Technologies
Technology
Advanced Manufacturing in Focus: Smart Life and Robotics Take the Spotlight at 140th Canton Fair
Published
10 hours agoon
October 18, 2026By
GUANGZHOU, China, Oct. 18, 2026 /CNW/ — Phase 1 of the 140th Canton Fair, themed “Advanced Manufacturing,” opened on October 15 and will run through October 19. As one of the event’s most closely watched sections, the Consumer Electronics and Information Products zone once again serves as a showcase for the latest achievements in China’s manufacturing and technology industries.
Smart Life Solutions Address an Aging and Globalized Market
A highlight of this section is the focus on smart living, which brings together smart solutions designed to support healthier, safer, and more independent lifestyles.
For example, wearable devices and continuous glucose monitoring systems enable convenient tracking of key health indicators such as heart rate and blood glucose levels. Meanwhile, wearable exoskeletons and other AI-powered devices support mobility training and functional recovery. For home and elderly care, companion robots, electric nursing beds and home-use hyperbaric oxygen chambers, offer a combination of daily care, wellness support and lifestyle assistance. All these solutions highlight a growing shift toward technology-enabled living, where health management, personal care, and independent living are becoming more accessible and connected.
Service Robots Demonstrate Expanding Real-World Applications
The Service Robot Zone remains one of the fair’s most popular attractions in this edition.
Among the crowd favorites is a humanoid robot standing roughly 70–80 centimeters tall. With its expressive movements and playful appearance, the robot draws constant attention as it dances, approaches visitors and occasionally performs flips to the delight of onlookers. Behind the product is a company that has overcome key challenges in compact joint modules and modular humanoid robot development. Its independently developed high-power-density joints deliver remarkable agility and explosive movement, while modular architecture provides flexibility for a wide range of future applications.
More broadly, the Service Robot Zone features exhibits spanning a wide range of application areas, including embodied intelligence, specialized operations, urban services, and smart living. Full-size humanoid robots, dexterous hands with multimodal sensing capabilities and wheeled robots highlight the latest advances in artificial intelligence, perception technologies and motion control. For demanding industrial and emergency environments, exhibitors are presenting robotic inspection systems, live-line maintenance robots and underwater propulsion robots designed to improve safety and operational efficiency.
The commercial services sector is also well represented through reception robots, façade-cleaning robots and fully automated coffee kiosks, while everyday life applications include wearable exoskeletons, robotic lawn mowers and educational robots for home use. Together, these exhibits demonstrate how China’s robotics industry is accelerating its transition from technological innovation to large-scale commercialization.
As the 140th Canton Fair gets underway, the showcased innovations highlight China’s growing strength in advanced manufacturing, turning cutting-edge technologies into practical, market-ready solutions for global customers.
For more convenient attendance, please click here for pre-registration:
https://buyer.cantonfair.org.cn/register/buyer/email?source_type=16
View original content to download multimedia:https://www.prnewswire.com/news-releases/advanced-manufacturing-in-focus-smart-life-and-robotics-take-the-spotlight-at-140th-canton-fair-302911955.html
SOURCE Canton Fair
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