Full Press Release Details
Burning Rock Reports Second Quarter 2020 Financial Results
GUANGZHOU, China, August 11, 2020 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 ended June 30, 2020.
Second Quarter 2020 Highlights
We appreciate existing and new
shareholders valuable support towards our IPO in June, the largest IPO by a molecular diagnostics company from China, as we look to leveraging the proceeds raised to catalyze our growth trajectory, said Yusheng Han, chairman and chief
executive officer of Burning Rock. Amid sporadic COVID incidents in China during the second quarter, we returned to positive year-over-year revenue growth. We continued our efforts to bring NGS testing capability
in-house for hospitals through our decentralized, kit based, in-hospital channel; we also advanced our market leadership position in the
central-laboratory channel where samples are sent out to third-party laboratories for testing. For early cancer detection, after four years of internal R&D, we launched the 14,000 patient PREDICT study
during the second quarter, the first early detection study in multiple cancer types in China, to further develop and validate our blood-based test.
Second Quarter 2020 Financial Results
RMB107.0 million (US$15.1 million) for the three months ended June 30, 2020, representing a 26.1% increase from RMB84.8 million for the same period in 2019.
of revenues was RMB28.6 million (US$4.0 million) for the three months ended June 30, 2020, representing a 25.6% increase from RMB22.8 million for the same period in 2019, which was in line with the Company s continued
Gross profit was RMB78.4 million (US$11.1 million) for the three months ended June 30, 2020, representing a 26.3%
increase from RMB62.0 million for the same period in 2019. Gross margin was 73.3% for the three months ended June 30, 2020, compared to 73.2% for the same period in 2019.
Operating expenses were RMB151.4 million (US$21.4 million) for the three months ended June 30, 2020, representing a 67.3% increase from
RMB90.5 million for the same period in 2019.
Net loss was RMB71.1 million (US$10.1 million),
compared to RMB26.0 million for the same period in 2019.
Cash, cash equivalents and restricted cash were RMB2.6 billion (US$363.2 million) as
2020 Financial Guidance
Assuming no significant resurgence of the COVID pandemic in China, Burning Rock expects its full year 2020 revenues to be approximately RMB420 million
(US$59.4 million), implying a 28% year-over-year growth in the second half of 2020 compared with the same period in 2019.
Conference Call Information
Burning Rock will host a conference call to discuss the second quarter 2020 financial results at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Hong Kong
time) on August 11, 2020.
Details of the conference call are as follows:
| International: | +65 67135090 | |
| U.S.: | 18665194004 | |
| U.K.: | 08082346646 | |
| Hong Kong: | +852 30186771 | |
| China Mobile: | 4006208038 | |
| China Landline: | 8008190121 | |
| Conference ID: | 4765946 |
A replay of the conference call will be available for two weeks (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 185,000 tissue and
liquid-based tests completed cumulatively, and ii) NGS-based 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: www.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
| Three months ended | ||||||||||||||||||||||||
| March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | March 31, 2020 | June 30, 2020 | |||||||||||||||||||
| Central Laboratory Channel: | ||||||||||||||||||||||||
| Number of patients tested | 5,336 | 6,047 | 6,769 | 7,576 | 4,680 | 7,252 | ||||||||||||||||||
| Number of ordering physicians (1) | 984 | 1,059 | 1,155 | 1,222 | 810 | 1,175 | ||||||||||||||||||
| Number of ordering hospitals (2) | 249 | 265 | 281 | 304 | 232 | 284 |
| As of | ||||||||||||||||||||||||
| March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | March 31, 2020 | June 30, 2020 | |||||||||||||||||||
| In-hospital Channel: | ||||||||||||||||||||||||
| Pipeline partner hospitals (1) | 17 | 20 | 21 | 21 | 23 | 23 | ||||||||||||||||||
| Contracted partner hospitals (2) | 14 | 15 | 19 | 19 | 21 | 24 | ||||||||||||||||||
| Total number of partner hospitals | 31 | 35 | 40 | 40 | 44 | 47 |
Selected Financial Data
| For three months ended | ||||||||||||||||||||||||
| Revenues | March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | March 31, 2020 | June 30, 2020 | ||||||||||||||||||
| (RMB in thousands) | ||||||||||||||||||||||||
| Central laboratory channel | 72,807 | 63,394 | 69,304 | 70,749 | 46,141 | 74,607 | ||||||||||||||||||
| In-hospital channel | 26,557 | 16,329 | 30,704 | 14,088 | 17,123 | 27,588 | ||||||||||||||||||
| Pharma research and development channel | 5,101 | 5,090 | 3,716 | 3,838 | 4,065 | 4,776 | ||||||||||||||||||
| Total revenues | 104,465 | 84,813 | 103,724 | 88,675 | 67,329 | 106,971 |
| For three months ended | ||||||||||||||||||||||||
| Gross profit | March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | March 31, 2020 | June 30, 2020 | ||||||||||||||||||
| (RMB in thousands) | ||||||||||||||||||||||||
| Central laboratory channel | 54,910 | 46,122 | 50,113 | 51,420 | 32,434 | 56,556 | ||||||||||||||||||
| In-hospital channel | 19,870 | 12,571 | 25,412 | 319 | 10,126 | 19,269 | ||||||||||||||||||
| Pharma research and development channel | 3,332 | 3,366 | 2,662 | 3,237 | 2,224 | 2,573 | ||||||||||||||||||
| Total gross profit | 78,112 | 62,059 | 78,187 | 54,976 | 44,784 | 78,398 |
Burning Rock Biotech Limited
Unaudited Condensed Statements of Comprehensive Loss
(in thousands, except for share 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 | June 30, 2020 | ||||||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | US$ | ||||||||||||||||||||||
| Revenues | 104,465 | 84,813 | 103,724 | 88,675 | 67,329 | 106,971 | 15,141 | |||||||||||||||||||||
| Cost of revenues | (26,353 | ) | (22,754 | ) | (25,537 | ) | (33,699 | ) | (22,545 | ) | (28,573 | ) | (4,044 | ) | ||||||||||||||
| Gross profit | 78,112 | 62,059 | 78,187 | 54,976 | 44,784 | 78,398 | 11,097 | |||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||
| Research and development expenses | (31,427 | ) | (34,992 | ) | (38,278 | ) | (52,238 | ) | (40,016 | ) | (71,176 | ) | (10,074 | ) | ||||||||||||||
| Selling and marketing expenses | (26,690 | ) | (34,929 | ) | (42,606 | ) | (49,109 | ) | (29,815 | ) | (37,992 | ) | (5,377 | ) | ||||||||||||||
| General and administrative expenses | (31,565 | ) | (20,614 | ) | (30,866 | ) | (49,112 | ) | (34,295 | ) | (42,272 | ) | (5,983 | ) | ||||||||||||||
| Total operating expenses | (89,682 | ) | (90,535 | ) | (111,750 | ) | (150,459 | ) | (104,126 | ) | (151,440 | ) | (21,434 | ) | ||||||||||||||
| Loss from operations | (11,570 | ) | (28,476 | ) | (33,563 | ) | (95,483 | ) | (59,342 | ) | (73,042 | ) | (10,337 | ) | ||||||||||||||
| Interest income | 128 | 3,806 | 3,686 | 3,541 | 3,985 | 44 | 6 | |||||||||||||||||||||
| Interest expense | (4,210 | ) | (1,826 | ) | (1,650 | ) | (1,303 | ) | (1,178 | ) | 1,939 | 274 | ||||||||||||||||
| Other (expense) income, net | (176 | ) | (329 | ) | (37 | ) | (341 | ) | (151 | ) | 122 | 17 | ||||||||||||||||
| Foreign exchange (loss) gain, net | (101 | ) | 1,142 | 800 | (355 | ) | 611 | (118 | ) | (17 | ) | |||||||||||||||||
| 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 | ) | (10,057 | ) | ||||||||||||||
| Income tax expenses | ||||||||||||||||||||||||||||
| Net loss | (15,865 | ) | (26,030 | ) | (32,167 | ) | (95,094 | ) | (52,572 | ) | (71,055 | ) | (10,057 | ) | ||||||||||||||
| Net loss attributable to Burning Rock Biotech Limited s shareholders | (15,865 | ) | (26,030 | ) | (32,167 | ) | (95,094 | ) | (52,572 | ) | (71,055 | ) | (10,057 | ) | ||||||||||||||
| Accretion of convertible preferred shares | (50,296 | ) | (41,770 | ) | (33,772 | ) | (39,173 | ) | (26,288 | ) | (38,400 | ) | (5,435 | ) | ||||||||||||||
| Net loss attributable to ordinary shareholders | (66,161 | ) | (67,800 | ) | (65,939 | ) | (134,267 | ) | (78,860 | ) | (109,455 | ) | (15,492 | ) | ||||||||||||||
| Loss per share: Basic and diluted | (2.86 | ) | (2.93 | ) | (2.85 | ) | (5.49 | ) | (3.15 | ) | (2.68 | ) | (0.38 | ) | ||||||||||||||
| Weighted average shares outstanding used in loss per share computation: | ||||||||||||||||||||||||||||
| Basic and diluted | 23,167,232 | 23,167,232 | 23,167,232 | 24,437,444 | 25,031,575 | 40,786,167 | 40,786,167 | |||||||||||||||||||||
| Other comprehensive (loss) income, net of tax of nil | ||||||||||||||||||||||||||||
| Foreign currency translation adjustments | (278 | ) | (14,288 | ) | 45,317 | (6,647 | ) | 11,422 | (2,336 | ) | (331 | ) | ||||||||||||||||
| Total comprehensive loss | (16,143 | ) | (40,318 | ) | 13,150 | (101,741 | ) | (41,150 | ) | (73,391 | ) | (10,388 | ) | |||||||||||||||
| Total comprehensive loss attributable to Burning Rock Biotech Limited s shareholders | (16,143 | ) | (40,318 | ) | 13,150 | (101,741 | ) | (41,150 | ) | (73,391 | ) | (10,388 | ) |
| For the six months ended | ||||||||||||
| June 30, 2019 | June 30, 2020 | June 30, 2020 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Revenues | 189,278 | 174,300 | 24,670 | |||||||||
| Cost of revenues | (49,107 | ) | (51,118 | ) | (7,235 | ) | ||||||
| Gross profit | 140,171 | 123,182 | 17,435 | |||||||||
| Operating expenses: | ||||||||||||
| Research and development expenses | (66,419 | ) | (111,192 | ) | (15,738 | ) | ||||||
| Selling and marketing expenses | (61,619 | ) | (67,807 | ) | (9,597 | ) | ||||||
| General and administrative expenses | (52,179 | ) | (76,567 | ) | (10,837 | ) | ||||||
| Total operating expenses | (180,217 | ) | (255,566 | ) | (36,172 | ) | ||||||
| Loss from operations | (40,046 | ) | (132,384 | ) | (18,737 | ) | ||||||
| Interest income | 3,934 | 4,029 | 570 | |||||||||
| Interest expense | (6,036 | ) | 761 | 108 | ||||||||
| Other expense, net | (505 | ) | (29 | ) | (4 | ) | ||||||
| Foreign exchange gain, net | 1,041 | 493 | 70 | |||||||||
| Change in fair value of warrant liability | (283 | ) | 3,503 | 496 | ||||||||
| Loss before income tax | (41,895 | ) | (123,627 | ) | (17,497 | ) | ||||||
| Income tax expenses | ||||||||||||
| Net loss | (41,895 | ) | (123,627 | ) | (17,497 | ) | ||||||
| Net loss attributable to Burning Rock Biotech Limited s shareholders | (41,895 | ) | (123,627 | ) | (17,497 | ) | ||||||
| Accretion of convertible preferred shares | (92,066 | ) | (64,688 | ) | (9,156 | ) | ||||||
| Net loss attributable to ordinary shareholders | (133,961 | ) | (188,315 | ) | (26,653 | ) | ||||||
| Loss per share: Basic and diluted | (5.78 | ) | (5.73 | ) | (0.81 | ) | ||||||
| Weighted average shares outstanding used in loss per share computation: | ||||||||||||
| Basic and diluted | 23,167,232 | 32,865,350 | 32,865,350 | |||||||||
| Other comprehensive (loss) income, net of tax of nil: | ||||||||||||
| Foreign currency translation adjustments | (14,566 | ) | 9,086 | 1,286 | ||||||||
| Total comprehensive loss | (56,461 | ) | (114,541 | ) | (16,211 | ) | ||||||
| Total comprehensive loss attributable to Burning Rock Biotech Limited s shareholders | (56,461 | ) | (114,541 | ) | (16,211 | ) |
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets
| As of December 31, 2019 | As of June 30, 2020 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 94,235 | 2,565,973 | 363,190 | |||||||||
| Restricted cash | 4,009 | 263 | 37 | |||||||||
| Short-term investment | 313,988 | |||||||||||
| Accounts receivable | 88,822 | 83,120 | 11,765 | |||||||||
| Contract assets | 909 | 18,076 | 2,558 | |||||||||
| Amounts due from related parties | 74,368 | |||||||||||
| Inventories | 58,116 | 67,375 | 9,536 | |||||||||
| Prepayments and other current assets | 72,340 | 58,633 | 8,301 | |||||||||
| Total current assets | 706,787 | 2,793,440 | 395,387 | |||||||||
| Non-current assets: | ||||||||||||
| Equity method investment | 1,790 | 1,764 | 250 | |||||||||
| Long-term investment | 38,369 | 38,937 | 5,511 | |||||||||
| Property and equipment, net | 89,314 | 90,711 | 12,839 | |||||||||
| Intangible assets, net | 343 | 239 | 34 | |||||||||
| Other non-current assets | 10,954 | 16,536 | 2,341 | |||||||||
| Total non-current assets | 140,770 | 148,187 | 20,975 | |||||||||
| TOTAL ASSETS | 847,557 | 2,941,627 | 416,362 |
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets (Continued)
| As of December 31, 2019 | As of June 30, 2020 | As of June 30, 2020 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS (DEFICIT) EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | 12,348 | 26,741 | 3,785 | |||||||||
| Deferred revenue | 49,539 | 57,643 | 8,159 | |||||||||
| Capital lease obligations, current | 4,893 | 5,157 | 730 | |||||||||
| Accrued liabilities and other current liabilities | 54,059 | 102,603 | 14,523 | |||||||||
| Customer deposits | 4,104 | 15,631 | 2,212 | |||||||||
| Short-term borrowing | 2,370 | 2,370 | 335 | |||||||||
| Current portion of long-term borrowings | 37,129 | 14,035 | 1,987 | |||||||||
| Total current liabilities | 164,442 | 224,180 | 31,731 | |||||||||
| Non-current liabilities: | ||||||||||||
| Deferred government grants | 991 | 263 | 37 | |||||||||
| Capital lease obligations | 4,816 | 2,169 | 307 | |||||||||
| Long-term borrowings | 18,266 | 32,178 | 4,555 | |||||||||
| Warrant liability | 23,503 | |||||||||||
| Total non-current liabilities | 47,576 | 34,610 | 4,899 | |||||||||
| TOTAL LIABILITIES | 212,018 | 258,790 | 36,630 | |||||||||
| 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 | 114 | 17 | ||||||||||
| Class B ordinary shares | 21 | 3 | ||||||||||
| Additional paid-in capital | 45,640 | 3,798,869 | 537,695 | |||||||||
| Accumulated deficits | (946,464 | ) | (1,134,552 | ) | (160,585 | ) | ||||||
| Accumulated other comprehensive income | 9,299 | 18,385 | 2,602 | |||||||||
| Total shareholders (deficit) equity | (891,494 | ) | 2,682,837 | 379,732 | ||||||||
| TOTAL LIABILITIES, MEZZANIE EQUITY AND SHAREHOLDERS (DEFICIT) EQUITY | 847,557 | 2,941,627 | 416,362 |
Burning Rock Biotech Limited
Unaudited Condensed Statements of Cash Flow
| For the three months ended June 30, | ||||||||||||
| 2019 | 2020 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| Net cash (used in) generated from operating activities | (54,992 | ) | 61,124 | 8,652 | ||||||||
| Net cash (used in) generated from investing activities | (168,462 | ) | 296,102 | 41,910 | ||||||||
| Net cash generated from financing activities | 3,075 | 1,845,953 | 261,278 | |||||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | (1,748 | ) | (1,487 | ) | (211 | ) | ||||||
| Net (decrease) increase cash, cash equivalents and restricted cash | (222,127 | ) | 2,201,692 | 311,629 | ||||||||
| Cash, cash equivalents and restricted cash at the beginning of period | 407,867 | 364,544 | 51,598 | |||||||||
| Cash, cash equivalents and restricted cash at the end of period | 185,740 | 2,566,236 | 363,227 |