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Burning Rock Reports Fourth Quarter and Full Year 2021 Financial Results

Key Takeaway: Burning Rock Reports Fourth Quarter and Full Year 2021 Financial Results GUANGZHOU, China, March 22, 2022 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 2021 Financial Results
GUANGZHOU, China, March 22, 2022 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 the year ended December 31, 2021.
2021 Business Overview and Recent Updates
Revenues were RMB147.3 million (US$23.1 million) for the three months ended December 31, 2021, representing a 11.9%
increase from RMB131.7 million for the same period in 2020, or a 16.4% sequential increase from RMB126.6 million for the three months ended September 30, 2021.
Cost of revenues was RMB42.0 million (US$6.6 million) for the three months ended December 31,
2021, representing a 28.9% increase from RMB32.6 million for the same period in 2020, which was broadly in line with the Company s continued business growth.
Gross profit was RMB105.4 million (US$16.5 million) for the three months ended December 31,
2021. Gross margin was 71.5% for the three months ended December 31, 2021, compared to 75.3% for the same period in 2020. By channel, gross margin of central laboratory business was 76.7% during the fourth quarter of 2021, compared to 76.8%
during the same period in 2020; gross margin of in-hospital business was 65.9% during the fourth quarter of 2021, compared to 72.9% during the same period in 2020.
Operating expenses were RMB357.5 million (US$56.1 million) for the three months ended December 31, 2021, representing a 40.5% increase from
RMB254.5 million for the same period in 2020. The increase was primarily driven by headcount growth to support our business expansion.
Net loss was RMB251.1 million (US$39.4 million) for the three months ended
December 31, 2021, compared to RMB156.5 million for the same period in 2020.
Cash, cash equivalents, restricted cash and short-term investments
were RMB1,502.9 million (US$235.8 million) as of December 31, 2021.
Full Year 2021 Financial Results
Revenues were RMB507.9 million (US$79.7 million) for 2021, representing an 18.1% increase from RMB429.9 million for 2020.
Cost of revenues was RMB143.7 million (US$22.6 million) for 2021, representing a 23.9% increase from RMB116.0 million for 2020, which was in line
with the Company s continued business growth.
Gross profit was RMB364.1 million (US$57.1 million) for 2021, representing a 16.0% increase from
RMB313.9 million for 2020. Gross margin was 71.7% for 2021, compared to 73.0% for 2020.
Operating expenses were RMB1,161.2 million (US$182.2
million) for 2021, representing a 59.9% increase from RMB726.3 million for 2020.
Net loss was RMB796.7 million (US$125.0 million) for 2021, compared to RMB 407.2 million for 2020.
2022 Financial Guidance
We currently expect our
full year 2022 revenues to be approximately RMB620 million (US$97.3 million), implying a 22% growth over full year 2021.
Burning Rock will host a conference call to discuss the fourth quarter 2021 financial results at 8:00 a.m. U.S. Eastern Time (8:00 p.m.
Hong Kong time) on March 22, 2022.
Details of the conference call are as follows:
International: +65 67135590
U.S.: +1 3322089468
U.K.: +44 2036928125
Hong Kong: +852 30186771
China Mobile: 4008205286
China Landline: 8008208659
Conference ID: 8596728
A replay of the conference call will be available for one week (dial-in number: +61 2
9003 4211); 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, and ii) cancer early detection, which has moved beyond proof-of-concept R&D into the clinical validation stage.
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, 2020 June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021
Central Laboratory Channel:
Number of patients tested 4,680 7,252 8,644 7,989 7,716 8,155 7,808 8,235
Number of ordering physicians (1) 810 1,175 1,194 1,114 1,082 1,013 920 917
Number of ordering hospitals (2) 232 284 289 294 303 300 287 306
For the three months ended
March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021
In-hospital Channel:
Pipeline partner hospitals (1) 23 23 22 23 22 22 24 23
Contracted partner hospitals (2) 21 24 25 29 32 34 34 41
Total number of partner hospitals 44 47 47 52 54 56 58 64
Selected Financial Data
For the three months ended
Revenues March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021
(RMB in thousands)
Central laboratory channel 46,141 74,607 89,899 86,695 74,561 79,999 78,817 85,976
In-hospital channel 17,123 27,588 31,704 41,457 28,994 40,502 43,714 51,906
Pharma research and development channel 4,065 4,776 2,278 3,570 3,068 6,778 4,084 9,463
Total revenues 67,329 106,971 123,881 131,722 106,623 127,279 126,615 147,345
For the three months ended
Gross profit March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021
(RMB in thousands)
Central laboratory channel 32,434 56,556 67,804 66,588 55,212 58,681 58,387 65,985
In-hospital channel 10,126 19,269 22,410 30,218 20,070 29,426 31,111 34,194
Pharma research and development channel 2,224 2,573 1,373 2,347 1,658 2,124 2,098 5,200
Total gross profit 44,784 78,398 91,587 99,153 76,940 90,231 91,596 105,379
For the three months ended
Share-based compensation March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021
(RMB in thousands)
Cost of revenues 176 183 160 277 339 406 267 492
Research and development expenses 2,072 25,314 10,572 11,843 22,404 20,825 (9,559 ) (4,033 )
Selling and marketing expenses 253 491 341 2,372 2,633 2,809 2,044 2,126
General and administrative expenses 1,665 1,639 57,805 58,057 59,382 59,369 60,803 62,126
Total share-based compensation expenses 4,166 27,627 68,878 72,549 84,758 83,409 53,555 60,711
Burning Rock Biotech Limited
Unaudited Condensed Statements of Comprehensive Loss
(in thousands, except for number of shares and per share data)
For the three months ended
March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 December 31, 2021
RMB RMB RMB RMB RMB RMB RMB RMB US$
Revenues 67,329 106,971 123,881 131,722 106,623 127,279 126,615 147,345 23,122
Cost of revenues (22,545 ) (28,573 ) (32,294 ) (32,569 ) (29,683 ) (37,048 ) (35,019 ) (41,966 ) (6,585 )
Gross profit 44,784 78,398 91,587 99,153 76,940 90,231 91,596 105,379 16,537
Operating expenses:
Research and development expenses (40,016 ) (71,176 ) (69,330 ) (83,418 ) (77,414 ) (108,071 ) (69,649 ) (112,724 ) (17,689 )
Selling and marketing expenses (29,815 ) (37,992 ) (44,174 ) (56,606 ) (55,130 ) (68,058 ) (76,687 ) (103,221 ) (16,198 )
General and administrative expenses (34,295 ) (42,272 ) (102,731 ) (114,502 ) (116,259 ) (116,130 ) (116,304 ) (141,563 ) (22,214 )
Total operating expenses (104,126 ) (151,440 ) (216,235 ) (254,526 ) (248,803 ) (292,259 ) (262,640 ) (357,508 ) (56,101 )
Loss from operations (59,342 ) (73,042 ) (124,648 ) (155,373 ) (171,863 ) (202,028 ) (171,044 ) (252,129 ) (39,564 )
Interest income 3,985 44 698 1,341 787 681 958 1,031 162
Interest expense (1,178 ) 1,939 (776 ) (652 ) (510 ) (565 ) (367 ) (94 ) (15 )
Other (expense) income, net (151 ) 122 (176 ) (682 ) 118 433 20 (372 ) (58 )
Foreign exchange gain (loss), net 611 (118 ) (2,228 ) (1,112 ) 57 (560 ) 380 (731 ) (115 )
Change in fair value of warrant liability 3,503
Loss before income tax (52,572 ) (71,055 ) (127,130 ) (156,478 ) (171,411 ) (202,039 ) (170,053 ) (252,295 ) (39,590 )
Income tax (expenses) benefit (1,626 ) (424 ) 1,151 181
Net loss (52,572 ) (71,055 ) (127,130 ) (156,478 ) (171,411 ) (203,665 ) (170,477 ) (251,144 ) (39,409 )
Net loss attributable to Burning Rock Biotech Limited s shareholders (52,572 ) (71,055 ) (127,130 ) (156,478 ) (171,411 ) (203,665 ) (170,477 ) (251,144 ) (39,409 )
Accretion of convertible preferred shares (26,288 ) (38,400 )
Net loss attributable to ordinary shareholders (78,860 ) (109,455 ) (127,130 ) (156,478 ) (171,411 ) (203,665 ) (170,477 ) (251,144 ) (39,409 )
Loss per share:
Ordinary shares - basic and diluted (3.15 )
Class A ordinary shares - basic and diluted (2.68 ) (1.22 ) (1.51 ) (1.65 ) (1.96 ) (1.64 ) (2.40 ) (0.38 )
Class B ordinary shares - basic and diluted (2.68 ) (1.22 ) (1.51 ) (1.65 ) (1.96 ) (1.64 ) (2.40 ) (0.38 )
Weighted average shares outstanding used in loss per share computation:
Ordinary shares - basic and diluted 25,031,575
Class A ordinary shares - basic and diluted 23,461,319 86,479,686 86,511,799 86,721,263 86,764,260 86,908,975 87,128,297 87,128,297
Class B ordinary shares - basic and diluted 17,324,848 17,324,848 17,324,848 17,324,848 17,324,848 17,324,848 17,324,848 17,324,848
Other comprehensive (loss) income, net of tax of nil:
Foreign currency translation adjustments 11,422 (2,336 ) (91,093 ) (94,881 ) 14,080 (34,980 ) 6,146 (24,726 ) (3,880 )
Total comprehensive loss (41,150 ) (73,391 ) (218,223 ) (251,359 ) (157,331 ) (238,645 ) (164,331 ) (275,870 ) (43,289 )
Total comprehensive loss attributable to Burning Rock Biotech Limited s shareholders (41,150 ) (73,391 ) (218,223 ) (251,359 ) (157,331 ) (238,645 ) (164,331 ) (275,870 ) (43,289 )
Burning Rock Biotech Limited
Unaudited Condensed Statements of Comprehensive Loss
(in thousands, except for share and per share data)
For the year ended
December 31, 2020 December 31, 2021 December 31, 2021
RMB RMB USD
Revenues 429,903 507,862 79,694
Cost of revenues (115,981 ) (143,716 ) (22,553 )
Gross profit 313,922 364,146 57,141
Operating expenses:
Research and development expenses (263,940 ) (367,858 ) (57,725 )
Selling and marketing expenses (168,587 ) (303,096 ) (47,562 )
General and administrative expenses (293,800 ) (490,256 ) (76,932 )
Total operating expenses (726,327 ) (1,161,210 ) (182,219 )
Loss from operations (412,405 ) (797,064 ) (125,078 )
Interest income 6,068 3,457 542
Interest expense (667 ) (1,536 ) (241 )
Other (expense) income, net (887 ) 199 31
Foreign exchange loss, net (2,847 ) (854 ) (134 )
Change in fair value of warrant liability 3,503
Loss before income tax (407,235 ) (795,798 ) (124,880 )
Income tax expenses (899 ) (141 )
Net loss (407,235 ) (796,697 ) (125,021 )
Net loss attributable to Burning Rock Biotech Limited s shareholders (407,235 ) (796,697 ) (125,021 )
Accretion of convertible preferred shares (64,688 )
Net loss attributable to ordinary shareholders (471,923 ) (796,697 ) (125,021 )
Loss per share:
Class A ordinary shares - basic and diluted (6.88 ) (7.65 ) (1.20 )
Class B ordinary shares - basic and diluted (6.88 ) (7.65 ) (1.20 )
Weighted average shares outstanding used in loss per share computation:
Class A ordinary shares - basic and diluted 51,309,631 86,883,011 86,883,011
Class B ordinary shares - basic and diluted 17,324,848 17,324,848 17,324,848
Other comprehensive loss, net of tax of nil:
Foreign currency translation adjustments (176,888 ) (39,480 ) (6,195 )
Total comprehensive loss (584,123 ) (836,177 ) (131,216 )
Total comprehensive loss attributable to Burning Rock Biotech Limited s shareholders (584,123 ) (836,177 ) (131,216 )
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets
As of
December 31, 2020 December 31, 2021 December 31, 2021
RMB RMB US$
ASSETS
Current assets:
Cash and cash equivalents 1,895,308 1,431,317 224,605
Restricted cash 29,898 7,795 1,223
Short-term investments 362,132 63,757 10,005
Accounts receivable, net 88,218 92,197 14,468
Contract assets, net 22,534 42,391 6,652
Amounts due from related parties 212
Inventories 68,021 123,210 19,335
Prepayments and other current assets, net 57,329 60,279 9,460
Total current assets 2,523,652 1,820,946 285,748
Non-current assets:
Equity method investment 1,417 910 143
Property and equipment, net 111,481 325,438 51,068
Operating right-of-use assets 81,007 12,712
Intangible assets, net 3,457 5,150 808
Other non-current assets 23,021 45,136 7,083
Total non-current assets 139,376 457,641 71,814
TOTAL ASSETS 2,663,028 2,278,587 357,562
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets (Continued)
As of
December 31, 2020 December 31, 2021 December 31, 2021
RMB RMB US$
LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities:
Accounts payable 35,482 63,080 9,899
Deferred revenue 74,402 142,871 22,420
Capital lease obligations, current 4,816
Accrued liabilities and other current liabilities 83,648 127,892 20,070
Customer deposits 1,120 972 153
Short-term borrowings 7,370 2,370 372
Current portion of long-term borrowings 34,695
Current portion of operating lease liabilities 34,999 5,492
Total current liabilities 241,533 372,184 58,406
Non-current liabilities:
Deferred government grants 263
Non-current portion of operating lease liabilities 49,316 7,739
Other non-current liabilities 228 11,776 1,848
Total non-current liabilities 491 61,092 9,587
TOTAL LIABILITIES 242,024 433,276 67,993
Shareholders equity:
Class A ordinary shares 116 116 18
Class B ordinary shares 21 21 3
Additional paid-in capital 4,006,616 4,280,956 671,775
Accumulated deficits (1,418,160 ) (2,228,713 ) (349,733 )
Accumulated other comprehensive loss (167,589 ) (207,069 ) (32,494 )
Total shareholders equity 2,421,004 1,845,311 289,569
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 2,663,028 2,278,587 357,562
Burning Rock Biotech Limited
Unaudited Condensed Statements of Cash Flows
For the three months ended
December 31, 2020 December 31, 2021 December 31, 2021
RMB RMB US$
Net cash used in operating activities (90,659 ) (112,349 ) (17,628 )
Net cash used in investing activities (36,428 ) (66,970 ) (10,508 )
Net cash generated from (used in) financing activities 68,477 (6,781 ) (1,065 )
Effect of exchange rate on cash, cash equivalents and restricted cash (78,013 ) (24,498 ) (3,844 )
Net decrease cash, cash equivalents and restricted cash (136,623 ) (210,598 ) (33,045 )
Cash, cash equivalents and restricted cash at the beginning of period 2,061,829 1,649,710 258,873
Cash, cash equivalents and restricted cash at the end of period 1,925,206 1,439,112 225,828
For the year ended
December 31, 2020 December 31, 2021 December 31, 2021
RMB RMB US$
Net cash used in operating activities (73,543 ) (477,886 ) (74,993 )
Net cash generated from (used in) investing activities (109,312 ) 81,697 12,823
Net cash generated from (used in) financing activities 2,165,719 (52,899 ) (8,301 )
Effect of exchange rate on cash, cash equivalents and restricted cash (155,902 ) (37,006 ) (5,808 )
Net increase (decrease) cash, cash equivalents and restricted cash 1,826,962 (486,094 ) (76,279 )
Cash, cash equivalents and restricted cash at the beginning of period 98,244 1,925,206 302,107
Cash, cash equivalents and restricted cash at the end of period 1,925,206 1,439,112 225,828
Last updated: Mar 22, 2022