Full Press Release Details
Burning Rock Reports Third Quarter 2020 Financial Results
GUANGZHOU, China, November 20, 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 September 30, 2020.
Recent Business Highlights
Third Quarter 2020 Financial Results
RMB123.9 million (US$18.2 million) for the three months ended September 30, 2020, representing a 19.4% increase from RMB103.7 million for the same period in 2019, or a 28.8% increase compared to the average of 3Q19 and 4Q19. Sequentially,
revenue increased by 15.8% from RMB107.0 million for the three months ended June 30, 2020.
Cost of revenues was RMB32.3 million (US$4.8 million) for the three months ended September 30, 2020, representing a 26.5% increase from
RMB25.5 million for the same period in 2019, which was generally in line with the Company s continued business growth.
RMB91.6 million (US$13.5 million) for the three months ended September 30, 2020, representing a 17.1% increase from RMB78.2 million for the same period in 2019. Gross margin was 73.9% for the three months ended September 30,
2020, compared to 75.4% for the same period in 2019.
Operating expenses were RMB216.2 million (US$31.8 million) for the three months ended
September 30, 2020, representing a 93.5% increase from RMB111.8 million for the same period in 2019.
Net loss was RMB127.1 million (US$18.7
million), compared to RMB32.2 million for the same period in 2019.
Cash, cash equivalents, restricted cash and short-term investments were
RMB2.4 billion (US$353.8 million) as of September 30, 2020.
2020 Financial Guidance
The Company reiterates its 2020 full-year revenue guidance of approximately RMB420 million (US$61.9 million).
Conference Call Information
Burning Rock will host a
conference call to discuss the third quarter 2020 financial results at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Hong Kong time) on November 20, 2020.
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: | 5637209 |
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 185,000 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 | ||||||||||||||||||||||
| Central Laboratory Channel: | ||||||||||||||||||||||||||||
| Number of patients tested | 5,336 | 6,047 | 6,769 | 7,576 | 4,680 | 7,252 | 8,644 | |||||||||||||||||||||
| Number of ordering physicians (1) | 984 | 1,059 | 1,155 | 1,222 | 810 | 1,175 | 1,194 | |||||||||||||||||||||
| Number of ordering hospitals (2) | 249 | 265 | 281 | 304 | 232 | 284 | 289 |
| As of | ||||||||||||||||||||||||||||
| March 31, 2019 | June 30, 2019 | September 30, 2019 | December 31, 2019 | March 31, 2020 | June 30, 2020 | September 30, 2020 | ||||||||||||||||||||||
| In-hospital Channel: | ||||||||||||||||||||||||||||
| Pipeline partner hospitals (1) | 17 | 20 | 21 | 21 | 23 | 23 | 22 | |||||||||||||||||||||
| Contracted partner hospitals (2) | 14 | 15 | 19 | 19 | 21 | 24 | 25 | |||||||||||||||||||||
| Total number of partner hospitals | 31 | 35 | 40 | 40 | 44 | 47 | 47 |
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 | |||||||||||||||||||||
| (RMB in thousands) | ||||||||||||||||||||||||||||
| Central laboratory channel | 72,807 | 63,394 | 69,304 | 70,749 | 46,141 | 74,607 | 89,899 | |||||||||||||||||||||
| In-hospital channel | 26,557 | 16,329 | 30,704 | 14,088 | 17,123 | 27,588 | 31,704 | |||||||||||||||||||||
| Pharma research and development channel | 5,101 | 5,090 | 3,716 | 3,838 | 4,065 | 4,776 | 2,278 | |||||||||||||||||||||
| Total revenues | 104,465 | 84,813 | 103,724 | 88,675 | 67,329 | 106,971 | 123,881 |
| 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 | |||||||||||||||||||||
| (RMB in thousands) | ||||||||||||||||||||||||||||
| Central laboratory channel | 54,910 | 46,122 | 50,113 | 51,420 | 32,434 | 56,556 | 67,804 | |||||||||||||||||||||
| In-hospital channel | 19,870 | 12,571 | 25,412 | 319 | 10,126 | 19,269 | 22,410 | |||||||||||||||||||||
| Pharma research and development channel | 3,332 | 3,366 | 2,662 | 3,237 | 2,224 | 2,573 | 1,373 | |||||||||||||||||||||
| Total gross profit | 78,112 | 62,059 | 78,187 | 54,976 | 44,784 | 78,398 | 91,587 |
| 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 | |||||||||||||||||||||
| (RMB in thousands) | ||||||||||||||||||||||||||||
| Cost of revenues | 143 | 177 | 180 | 178 | 176 | 183 | 160 | |||||||||||||||||||||
| Research and development expenses | 722 | 708 | 1,486 | 6,461 | 2,072 | 25,314 | 10,572 | |||||||||||||||||||||
| Selling and marketing expenses | 364 | 517 | 485 | (131 | ) | 253 | 491 | 341 | ||||||||||||||||||||
| General and administrative expenses | 429 | 537 | 1,149 | 9,387 | 1,665 | 1,639 | 57,805 | |||||||||||||||||||||
| Total share-based compensation expenses | 1,658 | 1,939 | 3,300 | 15,895 | 4,166 | 27,627 | 68,878 |
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 | September 30, 2020 | |||||||||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | RMB | US$ | |||||||||||||||||||||||||
| Revenues | 104,465 | 84,813 | 103,724 | 88,675 | 67,329 | 106,971 | 123,881 | 18,246 | ||||||||||||||||||||||||
| Cost of revenues | (26,353 | ) | (22,754 | ) | (25,537 | ) | (33,699 | ) | (22,545 | ) | (28,573 | ) | (32,294 | ) | (4,757 | ) | ||||||||||||||||
| Gross profit | 78,112 | 62,059 | 78,187 | 54,976 | 44,784 | 78,398 | 91,587 | 13,489 | ||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Research and development expenses | (31,427 | ) | (34,992 | ) | (38,278 | ) | (52,238 | ) | (40,016 | ) | (71,176 | ) | (69,330 | ) | (10,211 | ) | ||||||||||||||||
| Selling and marketing expenses | (26,690 | ) | (34,929 | ) | (42,606 | ) | (49,109 | ) | (29,815 | ) | (37,992 | ) | (44,174 | ) | (6,506 | ) | ||||||||||||||||
| General and administrative expenses | (31,565 | ) | (20,614 | ) | (30,866 | ) | (49,112 | ) | (34,295 | ) | (42,272 | ) | (102,731 | ) | (15,131 | ) | ||||||||||||||||
| Total operating expenses | (89,682 | ) | (90,535 | ) | (111,750 | ) | (150,459 | ) | (104,126 | ) | (151,440 | ) | (216,235 | ) | (31,848 | ) | ||||||||||||||||
| Loss from operations | (11,570 | ) | (28,476 | ) | (33,563 | ) | (95,483 | ) | (59,342 | ) | (73,042 | ) | (124,648 | ) | (18,359 | ) | ||||||||||||||||
| Interest income | 128 | 3,806 | 3,686 | 3,541 | 3,985 | 44 | 698 | 103 | ||||||||||||||||||||||||
| Interest expense | (4,210 | ) | (1,826 | ) | (1,650 | ) | (1,303 | ) | (1,178 | ) | 1,939 | (776 | ) | (114 | ) | |||||||||||||||||
| Other (expense) income, net | (176 | ) | (329 | ) | (37 | ) | (341 | ) | (151 | ) | 122 | (176 | ) | (26 | ) | |||||||||||||||||
| Foreign exchange (loss) gain, net | (101 | ) | 1,142 | 800 | (355 | ) | 611 | (118 | ) | (2,228 | ) | (328 | ) | |||||||||||||||||||
| 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 | ) | (18,724 | ) | ||||||||||||||||
| Income tax expenses | ||||||||||||||||||||||||||||||||
| Net loss | (15,865 | ) | (26,030 | ) | (32,167 | ) | (95,094 | ) | (52,572 | ) | (71,055 | ) | (127,130 | ) | (18,724 | ) | ||||||||||||||||
| Net loss attributable to Burning Rock Biotech Limited s shareholders | (15,865 | ) | (26,030 | ) | (32,167 | ) | (95,094 | ) | (52,572 | ) | (71,055 | ) | (127,130 | ) | (18,724 | ) | ||||||||||||||||
| 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 | ) | (18,724 | ) | ||||||||||||||||
| 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 | ) | (0.18 | ) | ||||||||||||||||||||||||||||
| Class B ordinary shares - basic and diluted | (1.22 | ) | (0.18 | ) | ||||||||||||||||||||||||||||
| 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 | 86,479,686 | ||||||||||||||||||||||||||||||
| Class B ordinary shares - basic and diluted | 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 | ) | (13,417 | ) | ||||||||||||||||||
| Total comprehensive (loss) income | (16,143 | ) | (40,318 | ) | 13,150 | (101,741 | ) | (41,150 | ) | (73,391 | ) | (218,223 | ) | (32,141 | ) | |||||||||||||||||
| 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 | ) | (32,141 | ) |
Burning Rock Biotech Limited
Unaudited Condensed Statements of Comprehensive (Loss) Income
(in thousands, except for number of shares and per share data)
| For the nine months ended | ||||||||||||
| September 30, 2019 | September 30, 2020 | September 30, 2020 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Revenues | 293,002 | 298,181 | 43,917 | |||||||||
| Cost of revenues | (74,644 | ) | (83,412 | ) | (12,286 | ) | ||||||
| Gross profit | 218,358 | 214,769 | 31,631 | |||||||||
| Operating expenses: | ||||||||||||
| Research and development expenses | (104,697 | ) | (180,522 | ) | (26,588 | ) | ||||||
| Selling and marketing expenses | (104,225 | ) | (111,981 | ) | (16,493 | ) | ||||||
| General and administrative expenses | (83,045 | ) | (179,298 | ) | (26,408 | ) | ||||||
| Total operating expenses | (291,967 | ) | (471,801 | ) | (69,489 | ) | ||||||
| Loss from operations | (73,609 | ) | (257,032 | ) | (37,858 | ) | ||||||
| Interest income | 7,620 | 4,727 | 696 | |||||||||
| Interest expense | (7,686 | ) | (15 | ) | (2 | ) | ||||||
| Other expense, net | (542 | ) | (205 | ) | (30 | ) | ||||||
| Foreign exchange (loss) gain, net | 1,841 | (1,735 | ) | (256 | ) | |||||||
| Change in fair value of warrant liability | (1,686 | ) | 3,503 | 516 | ||||||||
| Loss before income tax | (74,062 | ) | (250,757 | ) | (36,934 | ) | ||||||
| Income tax expenses | ||||||||||||
| Net loss | (74,062 | ) | (250,757 | ) | (36,934 | ) | ||||||
| Net loss attributable to Burning Rock Biotech Limited s shareholders | (74,062 | ) | (250,757 | ) | (36,934 | ) | ||||||
| Accretion of convertible preferred shares | (125,838 | ) | (64,688 | ) | (9,528 | ) | ||||||
| Net loss attributable to ordinary shareholders | (199,900 | ) | (315,445 | ) | (46,462 | ) | ||||||
| Loss per share for class A and class B ordinary shares: | ||||||||||||
| Ordinary shares - basic and diluted | (8.63 | ) | ||||||||||
| Class A ordinary shares - basic and diluted | (5.56 | ) | (0.82 | ) | ||||||||
| Class B ordinary shares - basic and diluted | (5.56 | ) | (0.82 | ) | ||||||||
| Weighted average shares outstanding used in loss per share computation: | ||||||||||||
| Ordinary shares - basic and diluted | 23,167,232 | |||||||||||
| Class A ordinary shares - basic and diluted | 39,446,747 | 39,446,747 | ||||||||||
| 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 | 30,751 | (82,007 | ) | (12,078 | ) | |||||||
| Total comprehensive loss | (43,311 | ) | (332,764 | ) | (49,012 | ) | ||||||
| Total comprehensive loss attributable to Burning Rock Biotech Limited s shareholders | (43,311 | ) | (332,764 | ) | (49,012 | ) |
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets
| As of | ||||||||||||
| December 31, 2019 | September 30, 2020 | September 30, 2020 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 94,235 | 2,061,566 | 303,636 | |||||||||
| Restricted cash | 4,009 | 263 | 39 | |||||||||
| Short-term investment | 313,988 | 340,505 | 50,151 | |||||||||
| Accounts receivable | 88,822 | 93,839 | 13,821 | |||||||||
| Contract assets | 909 | 20,257 | 2,984 | |||||||||
| Amounts due from related parties | 74,368 | |||||||||||
| Inventories | 58,116 | 69,805 | 10,281 | |||||||||
| Prepayments and other current assets | 72,340 | 60,970 | 8,980 | |||||||||
| Total current assets | 706,787 | 2,647,205 | 389,892 | |||||||||
| Non-current assets: | ||||||||||||
| Equity method investment | 1,790 | 1,527 | 225 | |||||||||
| Long-term investment | 38,369 | 37,456 | 5,517 | |||||||||
| Property and equipment, net | 89,314 | 96,688 | 14,241 | |||||||||
| Intangible assets, net | 343 | 3,455 | 509 | |||||||||
| Other non-current assets | 10,954 | 16,162 | 2,380 | |||||||||
| Total non-current assets | 140,770 | 155,288 | 22,872 | |||||||||
| TOTAL ASSETS | 847,557 | 2,802,493 | 412,764 |
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets (Continued)
| As of | ||||||||||||
| December 31, 2019 | September 30, 2020 | September 30, 2020 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS (DEFICIT) EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | 12,348 | 30,284 | 4,460 | |||||||||
| Deferred revenue | 49,539 | 67,109 | 9,884 | |||||||||
| Capital lease obligations, current | 4,893 | 5,300 | 781 | |||||||||
| Accrued liabilities and other current liabilities | 54,059 | 110,545 | 16,282 | |||||||||
| Customer deposits | 4,104 | 16,076 | 2,368 | |||||||||
| Short-term borrowing | 2,370 | 2,370 | 349 | |||||||||
| Current portion of long-term borrowings | 37,129 | 37,208 | 5,480 | |||||||||
| Total current liabilities | 164,442 | 268,892 | 39,604 | |||||||||
| Non-current liabilities: | ||||||||||||
| Deferred government grants | 991 | 263 | 39 | |||||||||
| Capital lease obligations | 4,816 | 787 | 116 | |||||||||
| Long-term borrowings | 18,266 | |||||||||||
| Warrant liability | 23,503 | |||||||||||
| Total non-current liabilities | 47,576 | 1,050 | 155 | |||||||||
| TOTAL LIABILITIES | 212,018 | 269,942 | 39,759 | |||||||||
| 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 | 3,866,806 | 569,519 | |||||||||
| Accumulated deficits | (946,464 | ) | (1,261,682 | ) | (185,826 | ) | ||||||
| Accumulated other comprehensive income (loss) | 9,299 | (72,708 | ) | (10,708 | ) | |||||||
| Total shareholders (deficit) equity | (891,494 | ) | 2,532,551 | 373,005 | ||||||||
| TOTAL LIABILITIES, MEZZANIE EQUITY AND SHAREHOLDERS (DEFICIT) EQUITY | 847,557 | 2,802,493 | 412,764 |
Burning Rock Biotech Limited
Unaudited Condensed Statements of Cash Flows
| For the three months ended | ||||||||||||
| September 30, 2019 | September 30, 2020 | September 30, 2020 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Net cash used in operating activities | (17,395 | ) | (37,052 | ) | (5,457 | ) | ||||||
| Net cash used in investing activities | (25,684 | ) | (365,373 | ) | (53,814 | ) | ||||||
| Net cash used in financing activities | (22,878 | ) | (20,939 | ) | (3,084 | ) | ||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | 5,501 | (81,043 | ) | (11,936 | ) | |||||||
| Net decrease cash, cash equivalents and restricted cash | (60,456 | ) | (504,407 | ) | (74,291 | ) | ||||||
| Cash, cash equivalents and restricted cash at the beginning of period | 185,740 | 2,566,236 | 377,966 | |||||||||
| Cash, cash equivalents and restricted cash at the end of period | 125,284 | 2,061,829 | 303,675 |
| For the nine months ended | ||||||||||||
| September 30, 2019 | September 30, 2020 | September 30, 2020 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Net cash (used in) generated from operating activities | (177,905 | ) | 17,116 | 2,519 | ||||||||
| Net cash used in investing activities | (368,922 | ) | (72,884 | ) | (10,734 | ) | ||||||
| Net cash generated from financing activities | 570,643 | 2,097,242 | 308,891 | |||||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash | 6,134 | (77,889 | ) | (11,471 | ) | |||||||
| Net increase cash, cash equivalents and restricted cash | 29,950 | 1,963,585 | 289,205 | |||||||||
| Cash, cash equivalents and restricted cash at the beginning of period | 95,334 | 98,244 | 14,470 | |||||||||
| Cash, cash equivalents and restricted cash at the end of period | 125,284 | 2,061,829 | 303,675 |