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Burning Rock Reports Fourth Quarter and Full Year 2020 Financial Results

Key Takeaway: Burning Rock Reports Fourth Quarter and Full Year 2020 Financial Results GUANGZHOU, China, March 11, 2021 Burning Rock Biotech Limited (NASDAQ: BNR, the Company or Burning Rock ), a company focused on the application of next generation sequencing (NGS) technology in the field o

Full Press Release Details

Burning Rock Reports Fourth Quarter and Full Year 2020 Financial Results
GUANGZHOU, China, March 11, 2021 Burning Rock Biotech Limited (NASDAQ: BNR, the Company or Burning Rock ), a company focused on
the application of next generation sequencing (NGS) technology in the field of precision oncology, today reported financial results for the three months and year ended December 31, 2020.
Recent Business Highlights
Fourth Quarter 2020 Financial Results
Revenues were RMB131.7 million (US$20.2 million) for the three months ended December 31, 2020, representing a 48.5% increase from
RMB88.7 million for the same period in 2019, or a 6.3% sequential increase from RMB123.9 million for the three months ended September 30, 2020. The growth in revenues was achievable despite
Covid-19 related restrictions, which negatively impacted growth of testing volumes in the fourth quarter, especially in December.
Cost of revenues was RMB32.6 million (US$5.0 million) for the three months ended December 31, 2020, representing a 3.4% decrease from
RMB33.7 million for the same period in 2019, primarily due to economies of scale and reduced unit cost of certain reagents.
Gross profit was RMB99.2 million (US$15.2 million) for the three months ended December 31,
2020, representing an 80.4% increase from RMB55.0 million for the same period in 2019. Gross margin was 75.3% for the three months ended December 31, 2020, compared to 62.0% for the same period in 2019.
Operating expenses were RMB254.5 million (US$39.0 million) for the three months ended December 31, 2020, representing a 69.2% increase from
RMB150.5 million for the same period in 2019.
Net loss was RMB156.5 million (US$24.0
million) for the three months ended December 31, 2020, compared to RMB95.1 million for the same period in 2019.
Cash, cash equivalents,
restricted cash and short-term investments were RMB2.3 billion (US$350.6 million) as of December 31, 2020.
Full Year 2020 Financial Results
Revenues were RMB429.9 million (US$65.9 million) for 2020, representing a 12.6% increase from RMB381.7 million for 2019.
revenues was RMB116.0 million (US$17.8 million) for 2020, representing a 7.0% increase from RMB108.3 million for 2019, which was in line with the Company s continued business growth.
Gross profit was RMB313.9 million (US$48.1 million) for 2020, representing a 14.8% increase from RMB273.3 million for 2019. Gross margin was
73.0% for 2020, compared to 71.6% for 2019.
Operating expenses were RMB726.3 million (US$111.3 million) for 2020, representing a 64.2% increase from
RMB442.4 million for 2019.
Net loss was RMB407.2 million (US$62.4 million) for 2020, compared to RMB169.2 million for
2021 Financial Guidance
Assuming there are no
additional Covid-19 related restrictions imposed in China, which may negatively affect patient volumes and cancer testing, Burning Rock expects its full year 2021 revenues to be approximately
RMB610 million (US$93.5 million), implying a 41.9% growth over full year 2020.
Conference Call Information
Burning Rock will host a conference call to discuss the fourth quarter 2020 financial results at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Hong Kong time) on
Details of the conference call are as follows:
International: +65 67135090
U.S.: +1 8456750437
U.K.: +44 2036214779
Hong Kong: +852 30186771
China Mobile: 4006208038
China Landline: 8008190121
Conference ID: 5266945
A replay of the conference call will be available for one week (dial-in number:
+61 2 8199 0299; same conference ID as shown above).
Burning Rock Biotech Limited (NASDAQ: BNR), whose mission is to guard life via science, focuses on the application of next generation sequencing (NGS)
technology in the field of precision oncology. Its business consists of i) NGS-based therapy selection testing for late-stage cancer patients, with the leading market share in China and over 273,000 tissue and
liquid-based tests completed cumulatively, and ii) cancer early detection, which has moved beyond proof-of-concept R&D into the clinical validation stage.
For more information about Burning Rock, please visit: ir.brbiotech.com.
Safe Harbor Statement
This press release contains
forward-looking statements. These statements constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform
Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes,
estimates, target, confident and similar statements. Burning Rock may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press
releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Burning Rock s beliefs and expectations, are
forward-looking statements. Such statements are based upon management s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which
are difficult to predict and many of which are beyond Burning Rock s control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such
statements. All information provided in this press release is as of the date of this press release, and Burning Rock does not undertake any obligation to update any forward-looking statement as a result of new information, future events or
otherwise, except as required under applicable law.
Selected Operating Data
For the three months ended
March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020
Central Laboratory Channel:
Number of patients tested 5,336 6,047 6,769 7,576 4,680 7,252 8,644 7,989
Number of ordering physicians (1) 984 1,059 1,155 1,222 810 1,175 1,194 1,114
Number of ordering hospitals (2) 249 265 281 304 232 284 289 294
As of
March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020
In-hospital Channel:
Pipeline partner hospitals (1) 17 20 21 21 23 23 22 23
Contracted partner hospitals (2) 14 15 19 19 21 24 25 29
Total number of partner hospitals 31 35 40 40 44 47 47 52
Selected Financial Data
For the three months ended
Revenues March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020
(RMB in thousands)
Central laboratory channel 72,807 63,394 69,304 70,749 46,141 74,607 89,899 86,695
In-hospital channel 26,557 16,329 30,704 14,088 17,123 27,588 31,704 41,457
Pharma research and development channel 5,101 5,090 3,716 3,838 4,065 4,776 2,278 3,570
Total revenues 104,465 84,813 103,724 88,675 67,329 106,971 123,881 131,722
For the three months ended
Gross profit March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020
(RMB in thousands)
Central laboratory channel 54,910 46,122 50,113 51,420 32,434 56,556 67,804 66,588
In-hospital channel 19,870 12,571 25,412 319 10,126 19,269 22,410 30,218
Pharma research and development channel 3,332 3,366 2,662 3,237 2,224 2,573 1,373 2,347
Total gross profit 78,112 62,059 78,187 54,976 44,784 78,398 91,587 99,153
For the three months ended
Share-based compensation expenses March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020
(RMB in thousands)
Cost of revenues 143 177 180 178 176 183 160 277
Research and development expenses 722 708 1,486 6,461 2,072 25,314 10,572 11,843
Selling and marketing expenses 364 517 485 (131 ) 253 491 341 2,372
General and administrative expenses 429 537 1,149 9,387 1,665 1,639 57,805 58,057
Total share-based compensation expenses 1,658 1,939 3,300 15,895 4,166 27,627 68,878 72,549
Burning Rock Biotech Limited Unaudited Condensed Statements of Comprehensive (Loss) Income
(in thousands, except for number of shares and per share data)
For the three months ended
March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 December 31, 2020
RMB RMB RMB RMB RMB RMB RMB RMB US$
Revenues 104,465 84,813 103,724 88,675 67,329 106,971 123,881 131,722 20,187
Cost of revenues (26,353 ) (22,754 ) (25,537 ) (33,699 ) (22,545 ) (28,573 ) (32,294 ) (32,569 ) (4,991 )
Gross profit 78,112 62,059 78,187 54,976 44,784 78,398 91,587 99,153 15,196
Operating expenses:
Research and development expenses (31,427 ) (34,992 ) (38,278 ) (52,238 ) (40,016 ) (71,176 ) (69,330 ) (83,418 ) (12,784 )
Selling and marketing expenses (26,690 ) (34,929 ) (42,606 ) (49,109 ) (29,815 ) (37,992 ) (44,174 ) (56,606 ) (8,675 )
General and administrative expenses (31,565 ) (20,614 ) (30,866 ) (49,112 ) (34,295 ) (42,272 ) (102,731 ) (114,502 ) (17,548 )
Total operating expenses (89,682 ) (90,535 ) (111,750 ) (150,459 ) (104,126 ) (151,440 ) (216,235 ) (254,526 ) (39,007 )
Loss from operations (11,570 ) (28,476 ) (33,563 ) (95,483 ) (59,342 ) (73,042 ) (124,648 ) (155,373 ) (23,811 )
Interest income 128 3,806 3,686 3,541 3,985 44 698 1,341 206
Interest expense (4,210 ) (1,826 ) (1,650 ) (1,303 ) (1,178 ) 1,939 (776 ) (652 ) (100 )
Other (expense) income, net (176 ) (329 ) (37 ) (341 ) (151 ) 122 (176 ) (682 ) (105 )
Foreign exchange (loss) gain, net (101 ) 1,142 800 (355 ) 611 (118 ) (2,228 ) (1,112 ) (170 )
Change in fair value of warrant liability 64 (347 ) (1,403 ) (1,153 ) 3,503
Loss before income tax (15,865 ) (26,030 ) (32,167 ) (95,094 ) (52,572 ) (71,055 ) (127,130 ) (156,478 ) (23,980 )
Income tax expenses
Net loss (15,865 ) (26,030 ) (32,167 ) (95,094 ) (52,572 ) (71,055 ) (127,130 ) (156,478 ) (23,980 )
Net loss attributable to Burning Rock Biotech Limited s shareholders (15,865 ) (26,030 ) (32,167 ) (95,094 ) (52,572 ) (71,055 ) (127,130 ) (156,478 ) (23,980 )
Accretion of convertible preferred shares (50,296 ) (41,770 ) (33,772 ) (39,173 ) (26,288 ) (38,400 )
Net loss attributable to ordinary shareholders (66,161 ) (67,800 ) (65,939 ) (134,267 ) (78,860 ) (109,455 ) (127,130 ) (156,478 ) (23,980 )
Loss per share:
Ordinary shares - basic and diluted (2.86 ) (2.93 ) (2.85 ) (5.49 ) (3.15 ) (2.68 )
Class A ordinary shares - basic and diluted (1.22 ) (1.51 ) (0.23 )
Class B ordinary shares - basic and diluted (1.22 ) (1.51 ) (0.23 )
Weighted average shares outstanding used in loss per share computation:
Ordinary shares - basic and diluted 23,167,232 23,167,232 23,167,232 24,437,444 25,031,575 40,786,167
Class A ordinary shares - basic and diluted 86,479,686 86,511,799 86,511,799
Class B ordinary shares - basic and diluted 17,324,848 17,324,848 17,324,848
Other comprehensive (loss) income, net of tax of nil:
Foreign currency translation adjustments (278 ) (14,288 ) 45,317 (6,647 ) 11,422 (2,336 ) (91,093 ) (94,881 ) (14,541 )
Total comprehensive (loss) income (16,143 ) (40,318 ) 13,150 (101,741 ) (41,150 ) (73,391 ) (218,223 ) (251,359 ) (38,521 )
Total comprehensive (loss) income attributable to Burning Rock Biotech Limited s shareholders (16,143 ) (40,318 ) 13,150 (101,741 ) (41,150 ) (73,391 ) (218,223 ) (251,359 ) (38,521 )
Burning Rock Biotech Limited
Unaudited Condensed Statements of Comprehensive (Loss) Income
(in thousands, except for number of shares and per share data)
For the year ended
December 31, 2019 December 31, 2020 December 31, 2020
RMB RMB US$
Revenues 381,677 429,903 65,885
Cost of revenues (108,343 ) (115,981 ) (17,775 )
Gross profit 273,334 313,922 48,110
Operating expenses:
Research and development expenses (156,935 ) (263,940 ) (40,451 )
Selling and marketing expenses (153,334 ) (168,587 ) (25,837 )
General and administrative expenses (132,157 ) (293,800 ) (45,027 )
Total operating expenses (442,426 ) (726,327 ) (111,315 )
Loss from operations (169,092 ) (412,405 ) (63,205 )
Interest income 11,161 6,068 930
Interest expense (8,989 ) (667 ) (102 )
Other expense, net (883 ) (887 ) (136 )
Foreign exchange gain (loss), net 1,486 (2,847 ) (436 )
Change in fair value of warrant liability (2,839 ) 3,503 537
Loss before income tax (169,156 ) (407,235 ) (62,412 )
Income tax expenses
Net loss (169,156 ) (407,235 ) (62,412 )
Net loss attributable to Burning Rock Biotech Limited s shareholders (169,156 ) (407,235 ) (62,412 )
Accretion of convertible preferred shares (165,011 ) (64,688 ) (9,914 )
Net loss attributable to ordinary shareholders (334,167 ) (471,923 ) (72,326 )
Loss per share for class A and class B ordinary shares:
Ordinary shares - basic and diluted (14.23 )
Class A ordinary shares - basic and diluted (6.88 ) (1.05 )
Class B ordinary shares - basic and diluted (6.88 ) (1.05 )
Weighted average shares outstanding used in loss per share computation:
Ordinary shares - basic and diluted 23,483,915
Class A ordinary shares - basic and diluted 51,309,631 51,309,631
Class B ordinary shares - basic and diluted 17,324,848 17,324,848
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustments 24,104 (176,888 ) (27,109 )
Total comprehensive loss (145,052 ) (584,123 ) (89,521 )
Total comprehensive loss attributable to Burning Rock Biotech Limited s shareholders (145,052 ) (584,123 ) (89,521 )
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets
As of
December 31, 2019 December 31, 2020 December 31, 2020
RMB RMB US$
ASSETS
Current assets:
Cash and cash equivalents 94,235 1,895,308 290,469
Restricted cash 4,009 29,898 4,582
Short-term investment 313,988 362,132 55,499
Accounts receivable 88,822 88,218 13,520
Contract assets 909 22,534 3,453
Amounts due from related parties 74,368 212 32
Inventories 58,116 68,021 10,425
Prepayments and other current assets 72,340 57,329 8,789
Total current assets 706,787 2,523,652 386,769
Non-current assets:
Equity method investment 1,790 1,417 217
Long-term investment 38,369
Property and equipment, net 89,314 111,481 17,085
Intangible assets, net 343 3,457 530
Other non-current assets 10,954 23,021 3,528
Total non-current assets 140,770 139,376 21,360
TOTAL ASSETS 847,557 2,663,028 408,129
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets (Continued)
As of
December 31, 2019 December 31, 2020 December 31, 2020
RMB RMB US$
LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS (DEFICIT) EQUITY
Current liabilities:
Accounts payable 12,348 35,482 5,438
Deferred revenue 49,539 74,402 11,403
Capital lease obligations, current 4,893 4,816 738
Accrued liabilities and other current liabilities 54,059 83,648 12,820
Customer deposits 4,104 1,120 172
Short-term borrowing 2,370 7,370 1,130
Current portion of long-term borrowings 37,129 34,695 5,317
Total current liabilities 164,442 241,533 37,018
Non-current liabilities:
Deferred government grants 991 263 40
Capital lease obligations 4,816
Long-term borrowings 18,266
Warrant liability 23,503
Other non-current liabilities 228 35
Total non-current liabilities 47,576 491 75
TOTAL LIABILITIES 212,018 242,024 37,093
Mezzanine equity:
Series A convertible preferred shares 186,991
Series B convertible preferred shares 466,983
Series C convertible preferred shares 873,059
Total mezzanine equity 1,527,033
Shareholders (deficit) equity:
Ordinary shares 31
Class A ordinary shares 116 18
Class B ordinary shares 21 3
Additional paid-in capital 45,640 4,006,616 614,041
Accumulated deficits (946,464 ) (1,418,160 ) (217,343 )
Accumulated other comprehensive income (loss) 9,299 (167,589 ) (25,683 )
Total shareholders (deficit) equity (891,494 ) 2,421,004 371,036
TOTAL LIABILITIES, MEZZANIE EQUITY AND SHAREHOLDERS (DEFICIT) EQUITY 847,557 2,663,028 408,129
Burning Rock Biotech Limited
Unaudited Condensed Statements of Cash Flows
For the three months ended
December 31, 2019 December 31, 2020 December 31, 2020
RMB RMB US$
Net cash used in operating activities (50,136 ) (90,659 ) (13,890 )
Net cash generated from (used in) investing activities 22,262 (36,428 ) (5,583 )
Net cash generated from financing activities 1,092 68,477 10,494
Effect of exchange rate on cash, cash equivalents and restricted cash (258 ) (78,013 ) (11,959 )
Net decrease cash, cash equivalents and restricted cash (27,040 ) (136,623 ) (20,938 )
Cash, cash equivalents and restricted cash at the beginning of period 125,284 2,061,829 315,989
Cash, cash equivalents and restricted cash at the end of period 98,244 1,925,206 295,051
For the year ended
December 31, 2019 December 31, 2020 December 31, 2020
RMB RMB US$
Net cash used in operating activities (228,041 ) (73,543 ) (11,271 )
Net cash used in investing activities (346,660 ) (109,312 ) (16,752 )
Net cash generated from financing activities 571,735 2,165,719 331,910
Effect of exchange rate on cash, cash equivalents and restricted cash 5,876 (155,902 ) (23,893 )
Net increase cash, cash equivalents and restricted cash 2,910 1,826,962 279,994
Cash, cash equivalents and restricted cash at the beginning of period 95,334 98,244 15,057
Cash, cash equivalents and restricted cash at the end of period 98,244 1,925,206 295,051
Last updated: Mar 11, 2021