Behind the skyrocketing stock prices, Beijing Genomics Institute (BGI) also faces four major problems: (1) Low R&D costs. BGI spent a total of RMB 440 million in research and development expenses for three consecutive years. Its rival Illumina has invested more than RMB 9 billion in R&D for three years. (2) Too much receivables. BGI's book has only RMB 946 million in cash yet the receivables is up to RMB 833 million. (3) There is no core technology. (4) Intense competition in the industry. BGI’s rivals in China are also frantically competing for the market, resulting in marketing costs increasing up to RMB 402 million. Some analysts believe that BGI's business model is quite similar with that of ZTE. If BGI does not increase its technological R & D, it is very likely that it will be in a critical situation like the one ZTE is facing.