Full Press Release Details
Burning Rock Reports Second Quarter 2021 Financial Results
GUANGZHOU, China, August 31, 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 ended June 30, 2021.
Second Quarter 2021 Financial Results
Revenues were RMB127.3 million (US$19.7 million) for the three months ended June 30, 2021, representing a 19.0% increase from RMB107.0 million
for the same period in 2020, or a 19.4% sequential increase from RMB106.6 million for the three months ended March 31, 2021.
Cost of revenues was RMB37.0 million (US$5.7 million) for the three months ended June 30,
2021, representing a 29.7% increase from RMB28.6 million for the same period in 2020, which was generally in line with the Company s continued business growth.
Gross profit was RMB90.2 million (US$14.0 million) for the three months ended June 30, 2021, representing a 15.1% increase from
RMB78.4 million for the same period in 2020. Gross margin was 70.9% for the three months ended June 30, 2021, compared to 73.3% for the same period in 2020.
Operating expenses were RMB292.3 million (US$45.3 million) for the three months ended June 30, 2021, representing a 93% increase from
RMB151.4 million for the same period in 2020. The increase was primarily driven by headcount growth and increase in other costs to support business expansion.
Net loss was RMB203.7 million (US$31.5 million) for the three months ended June 30, 2021, compared to RMB71.1 million for the same period in
Cash, cash equivalents, restricted cash and short-term investments were RMB1,918.8 million (US$297.2 million) as of June 30, 2021.
Appointment of VP of Regulatory Affairs (US and Europe) and Quality Assurance
Dr. Sharon Liang joined Burning Rock as the VP of Regulatory Affairs (US and Europe) and Quality Assurance in late June this year. She is a human genetics
expert with nearly two decades of experience in molecular cancer diagnostic medical device product development and regulatory in academia, government and industry. She was the US FDA committee member for the US President s Precision Medicine
Initiative (PMI) Project leading Bioinformatics group. She led and contributed to the development of many molecular diagnostic devices approved by the FDA, including the first NGS sequencer, first NGS Oncopanel, first NGS tumor profiling assay,
first Direct-to-Consumer test, first microarray genetic tests, and companion diagnostics. Before joining Burning Rock, Dr. Liang worked at GRAIL, a cancer early
detection diagnostic company, primarily responsible for regulatory strategy and execution.
2021 Financial Guidance
For the third quarter of this year, COVID-related travel restrictions in multiple major cities in China will impact our central-laboratory testing volumes and,
to a lesser extent, the growth of our in-hospital testing volumes. The relatively stronger growth expected for in-hospital testing will also be driven by the industry
structural shift from central-laboratory towards in-hospital testing. We believe that we are well-positioned in the in-hospital segment, and we view the revenues from in-hospital as higher quality, given our product and competitive advantages, leading to stickier revenues. As the testing mix of our therapy selection business transitions towards the
in-hospital segment, our blended average sales price will decline, due to lower prices of IVD testing kits that we supply to hospitals in the in-hospital segment,
compared with prices of LDT testing service that we charge to patients in the central-laboratory segment. This will result, during this transition period, in a lower revenue growth rate compared with volume growth rate, for our therapy selection
business. As such, the Company adjusts its 2021 full-year revenue guidance to approximately RMB500 million.
Conference Call Information
Burning Rock will host a conference call to discuss the second quarter 2021 financial results at 8:00 a.m. U.S. Eastern Time (8:00 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: | 2309539 |
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, 2020 | June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | |||||||||||||||||||
| Central Laboratory Channel: | ||||||||||||||||||||||||
| Number of patients tested | 4,680 | 7,252 | 8,644 | 7,989 | 7,716 | 8,155 | ||||||||||||||||||
| Number of ordering physicians (1) | 810 | 1,175 | 1,194 | 1,114 | 1,082 | 1,013 | ||||||||||||||||||
| Number of ordering hospitals (2) | 232 | 284 | 289 | 294 | 303 | 300 |
| As of | ||||||||||||||||||||||||
| March 31, 2020 | June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | |||||||||||||||||||
| In-hospital Channel: | ||||||||||||||||||||||||
| Pipeline partner hospitals (1) | 23 | 23 | 22 | 23 | 22 | 22 | ||||||||||||||||||
| Contracted partner hospitals (2) | 21 | 24 | 25 | 29 | 32 | 34 | ||||||||||||||||||
| Total number of partner hospitals | 44 | 47 | 47 | 52 | 54 | 56 |
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 | ||||||||||||||||||
| (RMB in thousands) | ||||||||||||||||||||||||
| Central laboratory channel | 46,141 | 74,607 | 89,899 | 86,695 | 74,561 | 79,999 | ||||||||||||||||||
| In-hospital channel | 17,123 | 27,588 | 31,704 | 41,457 | 28,994 | 40,502 | ||||||||||||||||||
| Pharma research and development channel | 4,065 | 4,776 | 2,278 | 3,570 | 3,068 | 6,778 | ||||||||||||||||||
| Total revenues | 67,329 | 106,971 | 123,881 | 131,722 | 106,623 | 127,279 |
| 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 | ||||||||||||||||||
| (RMB in thousands) | ||||||||||||||||||||||||
| Central laboratory channel | 32,434 | 56,556 | 67,804 | 66,588 | 55,212 | 58,681 | ||||||||||||||||||
| In-hospital channel | 10,126 | 19,269 | 22,410 | 30,218 | 20,070 | 29,426 | ||||||||||||||||||
| Pharma research and development channel | 2,224 | 2,573 | 1,373 | 2,347 | 1,658 | 2,124 | ||||||||||||||||||
| Total gross profit | 44,784 | 78,398 | 91,587 | 99,153 | 76,940 | 90,231 |
| For the three months ended | ||||||||||||||||||||||||
| Share-based compensation expenses | March 31, 2020 | June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | ||||||||||||||||||
| (RMB in thousands) | ||||||||||||||||||||||||
| Cost of revenues | 176 | 183 | 160 | 277 | 339 | 406 | ||||||||||||||||||
| Research and development expenses | 2,072 | 25,314 | 10,572 | 11,843 | 22,404 | 20,825 | ||||||||||||||||||
| Selling and marketing expenses | 253 | 491 | 341 | 2,372 | 2,633 | 2,809 | ||||||||||||||||||
| General and administrative expenses | 1,665 | 1,639 | 57,805 | 58,057 | 59,382 | 59,369 | ||||||||||||||||||
| Total share-based compensation expenses | 4,166 | 27,627 | 68,878 | 72,549 | 84,758 | 83,409 |
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 | June 30, 2021 | ||||||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | US$ | ||||||||||||||||||||||
| Revenues | 67,329 | 106,971 | 123,881 | 131,722 | 106,623 | 127,279 | 19,713 | |||||||||||||||||||||
| Cost of revenues | (22,545 | ) | (28,573 | ) | (32,294 | ) | (32,569 | ) | (29,683 | ) | (37,048 | ) | (5,738 | ) | ||||||||||||||
| Gross profit | 44,784 | 78,398 | 91,587 | 99,153 | 76,940 | 90,231 | 13,975 | |||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||
| Research and development expenses | (40,016 | ) | (71,176 | ) | (69,330 | ) | (83,418 | ) | (77,414 | ) | (108,071 | ) | (16,738 | ) | ||||||||||||||
| Selling and marketing expenses | (29,815 | ) | (37,992 | ) | (44,174 | ) | (56,606 | ) | (55,130 | ) | (68,058 | ) | (10,541 | ) | ||||||||||||||
| General and administrative expenses | (34,295 | ) | (42,272 | ) | (102,731 | ) | (114,502 | ) | (116,259 | ) | (116,130 | ) | (17,986 | ) | ||||||||||||||
| Total operating expenses | (104,126 | ) | (151,440 | ) | (216,235 | ) | (254,526 | ) | (248,803 | ) | (292,259 | ) | (45,265 | ) | ||||||||||||||
| Loss from operations | (59,342 | ) | (73,042 | ) | (124,648 | ) | (155,373 | ) | (171,863 | ) | (202,028 | ) | (31,290 | ) | ||||||||||||||
| Interest income | 3,985 | 44 | 698 | 1,341 | 787 | 681 | 105 | |||||||||||||||||||||
| Interest expense | (1,178 | ) | 1,939 | (776 | ) | (652 | ) | (510 | ) | (565 | ) | (88 | ) | |||||||||||||||
| Other (expense) income, net | (151 | ) | 122 | (176 | ) | (682 | ) | 118 | 433 | 67 | ||||||||||||||||||
| Foreign exchange gain (loss), net | 611 | (118 | ) | (2,228 | ) | (1,112 | ) | 57 | (560 | ) | (87 | ) | ||||||||||||||||
| 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 | ) | (31,293 | ) | ||||||||||||||
| Income tax expenses | (1,626 | ) | (252 | ) | ||||||||||||||||||||||||
| Net loss | (52,572 | ) | (71,055 | ) | (127,130 | ) | (156,478 | ) | (171,411 | ) | (203,665 | ) | (31,545 | ) | ||||||||||||||
| Net loss attributable to Burning Rock Biotech Limited s shareholders | (52,572 | ) | (71,055 | ) | (127,130 | ) | (156,478 | ) | (171,411 | ) | (203,665 | ) | (31,545 | ) | ||||||||||||||
| 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 | ) | (31,545 | ) | ||||||||||||||
| 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 | ) | (0.30 | ) | ||||||||||||||||
| Class B ordinary shares - basic and diluted | (2.68 | ) | (1.22 | ) | (1.51 | ) | (1.65 | ) | (1.96 | ) | (0.30 | ) | ||||||||||||||||
| 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 | 86,764,260 | ||||||||||||||||||||||
| 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 | ||||||||||||||||||||||
| 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 | ) | (5,418 | ) | ||||||||||||||||
| Total comprehensive loss | (41,150 | ) | (73,391 | ) | (218,223 | ) | (251,359 | ) | (157,331 | ) | (238,645 | ) | (36,963 | ) | ||||||||||||||
| Total comprehensive loss attributable to Burning Rock Biotech Limited s shareholders | (41,150 | ) | (73,391 | ) | (218,223 | ) | (251,359 | ) | (157,331 | ) | (238,645 | ) | (36,963 | ) |
Burning Rock Biotech Limited
Unaudited Condensed Statements of Comprehensive Loss
(in thousands, except for share and per share data)
| For the six months ended | ||||||||||||
| June 30, 2020 | June 30, 2021 | June 30, 2021 | ||||||||||
| RMB | RMB | USD | ||||||||||
| Revenues | 174,300 | 233,902 | 36,226 | |||||||||
| Cost of revenues | (51,118 | ) | (66,731 | ) | (10,336 | ) | ||||||
| Gross profit | 123,182 | 167,171 | 25,890 | |||||||||
| Operating expenses: | ||||||||||||
| Research and development expenses | (111,192 | ) | (185,485 | ) | (28,728 | ) | ||||||
| Selling and marketing expenses | (67,807 | ) | (123,188 | ) | (19,079 | ) | ||||||
| General and administrative expenses | (76,567 | ) | (232,389 | ) | (35,992 | ) | ||||||
| Total operating expenses | (255,566 | ) | (541,062 | ) | (83,799 | ) | ||||||
| Loss from operations | (132,384 | ) | (373,891 | ) | (57,909 | ) | ||||||
| Interest income | 4,029 | 1,468 | 227 | |||||||||
| Interest expense | 761 | (1,075 | ) | (166 | ) | |||||||
| Other (expense) income, net | (29 | ) | 551 | 85 | ||||||||
| Foreign exchange gain (loss), net | 493 | (503 | ) | (78 | ) | |||||||
| Change in fair value of warrant liability | 3,503 | |||||||||||
| Loss before income tax | (123,627 | ) | (373,450 | ) | (57,841 | ) | ||||||
| Income tax expenses | (1,626 | ) | (252 | ) | ||||||||
| Net loss | (123,627 | ) | (375,076 | ) | (58,093 | ) | ||||||
| Net loss attributable to Burning Rock Biotech Limited s shareholders | (123,627 | ) | (375,076 | ) | (58,093 | ) | ||||||
| Accretion of convertible preferred shares | (64,688 | ) | ||||||||||
| Net loss attributable to ordinary shareholders | (188,315 | ) | (375,076 | ) | (58,093 | ) | ||||||
| Loss per share: | ||||||||||||
| Class A ordinary shares - basic and diluted | (5.73 | ) | (3.60 | ) | (0.56 | ) | ||||||
| Class B ordinary shares - basic and diluted | (5.73 | ) | (3.60 | ) | (0.56 | ) | ||||||
| Weighted average shares outstanding used in loss per share computation: | ||||||||||||
| Class A ordinary shares - basic and diluted | 15,540,502 | 86,742,880 | 86,742,880 | |||||||||
| Class B ordinary shares - basic and diluted | 17,324,848 | 17,324,848 | 17,324,848 | |||||||||
| Other comprehensive income (loss), net of tax of nil: | ||||||||||||
| Foreign currency translation adjustments | 9,086 | (20,900 | ) | (3,237 | ) | |||||||
| Total comprehensive loss | (114,541 | ) | (395,976 | ) | (61,330 | ) | ||||||
| Total comprehensive loss attributable to Burning Rock Biotech Limited s shareholders | (114,541 | ) | (395,976 | ) | (61,330 | ) |
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets
| As of | ||||||||||||
| December 31, 2020 | June 30, 2021 | June 30, 2021 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 1,895,308 | 1,852,927 | 286,982 | |||||||||
| Restricted cash | 29,898 | 30,338 | 4,699 | |||||||||
| Short-term investment | 362,132 | 35,531 | 5,503 | |||||||||
| Accounts receivable | 88,218 | 78,141 | 12,103 | |||||||||
| Contract assets | 22,534 | 28,345 | 4,390 | |||||||||
| Amounts due from related parties | 212 | 628 | 97 | |||||||||
| Inventories | 68,021 | 114,434 | 17,724 | |||||||||
| Prepayments and other current assets | 57,329 | 76,157 | 11,795 | |||||||||
| Total current assets | 2,523,652 | 2,216,501 | 343,293 | |||||||||
| Non-current assets: | ||||||||||||
| Equity method investment | 1,417 | 1,261 | 195 | |||||||||
| Property and equipment, net | 111,481 | 198,324 | 30,716 | |||||||||
| Operating Right-of-use assets | 89,307 | 13,832 | ||||||||||
| Intangible assets, net | 3,457 | 4,882 | 756 | |||||||||
| Other non-current assets | 23,021 | 29,284 | 4,536 | |||||||||
| Total non-current assets | 139,376 | 323,058 | 50,035 | |||||||||
| TOTAL ASSETS | 2,663,028 | 2,539,559 | 393,328 |
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets (Continued)
| As of | ||||||||||||
| December 31, 2020 | June 30, 2021 | June 30, 2021 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| LIABILITIES AND SHAREHOLDERS (DEFICIT) EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | 35,482 | 47,983 | 7,432 | |||||||||
| Deferred revenue | 74,402 | 101,517 | 15,723 | |||||||||
| Capital lease obligations, current | 4,816 | |||||||||||
| Accrued liabilities and other current liabilities | 83,648 | 79,773 | 12,356 | |||||||||
| Customer deposits | 1,120 | 1,042 | 161 | |||||||||
| Short-term borrowing | 7,370 | 7,370 | 1,141 | |||||||||
| Current portion of long-term borrowings | 34,695 | 30,118 | 4,665 | |||||||||
| Current portion of operating lease liabilities | 32,789 | 5,078 | ||||||||||
| Current portion of financing lease liabilities | 2,169 | 336 | ||||||||||
| Total current liabilities | 241,533 | 302,761 | 46,892 | |||||||||
| Non-current liabilities: | ||||||||||||
| Deferred government grants | 263 | |||||||||||
| Operating lease liabilities | 63,132 | 9,778 | ||||||||||
| Other non-current liabilities | 228 | 226 | 35 | |||||||||
| Total non-current liabilities | 491 | 63,358 | 9,813 | |||||||||
| TOTAL LIABILITIES | 242,024 | 366,119 | 56,705 | |||||||||
| Shareholders equity: | ||||||||||||
| Class A ordinary shares | 116 | 116 | 18 | |||||||||
| Class B ordinary shares | 21 | 21 | 3 | |||||||||
| Treasury stock | (4,270 | ) | (661 | ) | ||||||||
| Additional paid-in capital | 4,006,616 | 4,173,154 | 646,339 | |||||||||
| Accumulated deficits | (1,418,160 | ) | (1,807,092 | ) | (279,883 | ) | ||||||
| Accumulated other comprehensive loss | (167,589 | ) | (188,489 | ) | (29,193 | ) | ||||||
| Total shareholders equity | 2,421,004 | 2,173,440 | 336,623 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS EQUITY | 2,663,028 | 2,539,559 | 393,328 |
Burning Rock Biotech Limited
Unaudited Condensed Statements of Cash Flows
| For the three months ended | ||||||||||||
| June 30, 2020 | June 30, 2021 | June 30, 2021 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Net cash generated from (used in) operating activities | 61,124 | (118,998 | ) | (18,433 | ) | |||||||
| Net cash generated from (used in) investing activities | 296,102 | (67,577 | ) | (10,463 | ) | |||||||
| Net cash generated from (used in) financing activities | 1,845,953 | (8,961 | ) | (1,388 | ) | |||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | (1,487 | ) | (34,085 | ) | (5,279 | ) | ||||||
| Net increase cash, cash equivalents and restricted cash | 2,201,692 | (229,621 | ) | (35,563 | ) | |||||||
| Cash, cash equivalents and restricted cash at the beginning of period | 364,544 | 2,112,886 | 327,244 | |||||||||
| Cash, cash equivalents and restricted cash at the end of period | 2,566,236 | 1,883,265 | 291,681 |
| For the six months ended | ||||||||||||
| June 30, 2020 | June 30, 2021 | June 30, 2021 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Net cash generated from (used in) operating activities | 54,168 | (232,143 | ) | (35,952 | ) | |||||||
| Net cash generated (used in) investing activities | 292,489 | 220,752 | 34,188 | |||||||||
| Net cash generated from (used in) financing activities | 2,118,181 | (13,123 | ) | (2,032 | ) | |||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | 3,154 | (17,427 | ) | (2,699 | ) | |||||||
| Net increase cash, cash equivalents and restricted cash | 2,467,992 | (41,941 | ) | (6,495 | ) | |||||||
| Cash, cash equivalents and restricted cash at the beginning of period | 98,244 | 1,925,206 | 298,176 | |||||||||
| Cash, cash equivalents and restricted cash at the end of period | 2,566,236 | 1,883,265 | 291,681 |