Full Press Release Details
AnPac Bio Reports 49.1% Decrease in Net Loss
in First Quarter of Fiscal 2022
PHILADELPHIA, May 31, 2022 (GLOBE NEWSWIRE) -
AnPac Bio-Medical Science Co., Ltd. ("AnPac Bio," the "Company" or "we") (NASDAQ: ANPC), a biotechnology
company with operations in China and the United States, announced today its unaudited financial results for the first quarter ended March
31, 2022. The Company's financial statements and related financial information for the quarter ended March 31, 2022 are unaudited and
have not been reviewed by the Company's independent registered accountant. These financial results could differ materially if they were
reviewed by the Company's independent registered accountant.
Financial highlights for the First Quarter 2022
(1) Non-GAAP net loss is defined as
net loss excluding change in fair value of convertible debts and stock-based compensation. For more information, refer to "Use of
Non-GAAP Financial Measures" and "Reconciliations of Non-GAAP Results" at the end of this press release.
Business Highlights for the First Quarter of 2022
Dr. Chris Yu, Co-CEO and Co-Chairman of AnPac Bio
commented: "we are pleased with our overall performance in the first quarter of 2022. Our financial performance was improved in
a number of important areas. We have significantly reduced our net loss by 49.1% and our short debt was reduced by 66.1% in Q1 2022, compared
with the same period last year. In product development and commercialization area, following successfully passing Class III medical device
tests at our National Medical Product Administration (NMPA) designated testing laboratory in December 2021, we have begun developing plans
for our Class III medical device clinical trials and selecting suited hospitals for the trials. While we are still experiencing negative
effects of COVID-19, we intend to work very hard to make progress in a number of critical areas, including fund raising, cost cutting,
product commercialization, including Class III medical device certification, and market penetration."
Key Items of Financial Results for the First
Total revenues decreased by 9.9% to approximately
RMB2.0 million (US$309,000) for the first quarter of 2022 from approximately RMB2.2 million for the first quarter of 2021, primarily due
to a significant decrease in our revenue from cancer screening and detection tests.
Cost of revenues decreased by 3.3% to approximately
RMB878,000 (US$139,000) for the first quarter of 2022 from approximately RMB908,000 for the first quarter of 2021, primarily due to the
decrease of approximately RMB 300,000 cost of revenue from cancer screening and detection tests, which was in line with the decrease in
our revenue from sales of cancer screening and detection tests. Offset by the increased cost of revenues from technology services and
retail products was approximately RMB270,000, no such cost incurred for the same period of 2021.
Gross Profit and Gross Margin
Gross margin was 55.4% for the first quarter of
2022, representing a slight decrease from 58.4% for the first quarter of 2021, primarily due to lower selling prices we charged for CDA-based
Selling and Marketing Expenses
Selling and marketing expenses decreased by 24.1%
to approximately RMB2.9 million (US$463,000) for the first quarter of 2022 from approximately RMB3.9 million for the same period of 2021,
primarily due to less marketing activity.
Research and Development Expenses
Research and development expenses decreased by
28.3% to approximately RMB2.4 million (US$380,000) for the first quarter of 2022 from approximately RMB3.4 million for the first quarter
of 2021, primarily due to less research and development activities for the first quarter of 2022 compared to the same period of 2021.
General and Administrative Expenses
General and administrative expenses decreased
by 46.5% to approximately RMB10.3 million (US$1.6 million) for the first quarter of 2022 from approximately RMB19.2 million for the same
period of 2021, primarily due to the decreased share-based compensation.
Change in fair value of convertible debt
The Company recognized the convertible debt at
fair value. For the first quarter of 2022 and 2021, the Company recognized an aggregated unrealized loss of approximately RMB85,000 (US$13,000)
and approximately RMB3.2 million, respectively, due to changes in fair value of convertible debt.
Net loss decreased to approximately RMB14.9 million
(US$2.4 million) for the first quarter of 2022, compared to approximately RMB29.2 million for the first quarter of 2021. Basic and diluted
loss per share was RMB0.85 (US$0.13) for the first quarter of 2022, compared to that of RMB2.43 for the first quarter of 2021.
The Company adopted ASU 2016-02, Leases (Topic
842) on January 1, 2022. The guidance requires the lessee to record operating leases on the balance sheet with a right-of-use asset and
corresponding liability for future payment obligations. The Company recognized right of use assets and lease liabilities of approximately
$1.30 million and $1.32 million as of March 31, 2022.
As of March 31, 2022, the Company had cash and
cash equivalents of approximately RMB462,000 (US$73,000), compared to approximately RMB9.3 million as of December 31, 2021.
AnPac Bio is a biotechnology company focused on
early cancer screening and detection, with 155 issued patents as of March 31, 2022. With two certified clinical laboratories in China
and one CLIA and CAP accredited clinical laboratory in the United States, AnPac Bio performs a suite of cancer screening and detection
tests, including CDA (Cancer Differentiation Analysis), bio-chemical, immunological, and genomics tests. According to a report by Frost
& Sullivan, AnPac Bio ranked first globally in multi-cancer screening and detection test sample volume (accumulative to January 2021).
AnPac Bio's CDA technology platform has been shown in retrospective validation studies to be able to detect the risk of over 20
different cancer types with high sensitivity and specificity.
For more information, please visit: https://www.Anpacbio.com.
For investor and media inquiries, please contact:
Phil Case, Marketing and Investor Relations
Phone: +1-267-810-6776 (US)
Email: phil_case@AnPacbio.com
Ascent Investor Relations LLC
Tina Xiao, President
Phone: +1-917-609-0333 (US)
Email: tina.xiao@ascent-ir.com
Safe Harbor Statement
This announcement contains forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. These forward-looking statements are made under the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995 and are relating to the Company's future financial and operating performance. The Company has
attempted to identify forward-looking statements by terminologies including "believes," "estimates,"
"anticipates," "expects," "plans," "projects," "intends,"
"potential," "target," "aim," "predict," "outlook," "seek,"
"goal" "objective," "assume," "contemplate," "continue,"
"positioned," "forecast," "likely," "may," "could," "might,"
"will," "should," "approximately" or other words that convey uncertainty of future events or
outcomes to identify these forward-looking statements. These statements are based on current expectations, assumptions and
uncertainties involving judgments about, among other things, future economic, competitive and market conditions and future business
decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control.
These statements also involve known and unknown risks, uncertainties and other factors that may cause the Company's actual
results to be materially different from those expressed or implied by any forward-looking statement. Known and unknown risks,
uncertainties and other factors include, but are not limited to, the implementation of our business model and growth strategies;
trends and competition in the cancer screening and detection market; our expectations regarding demand for and market acceptance of
our cancer screening and detection tests and our ability to expand our customer base; our ability to obtain and maintain
intellectual property protections for our CDA technology and our continued research and development to keep pace with technology
developments; our ability to obtain and maintain regulatory approvals from the NMPA, the FDA and the relevant U.S. states and have
our laboratories certified or accredited by authorities including the CLIA; our future business development, financial condition and
results of operations and our ability to obtain financing cost-effectively; potential changes of government regulations; general
economic and business conditions in China and elsewhere; our ability to hire and maintain key personnel; our relationship with our
major business partners and customers; and the duration of the coronavirus outbreaks and their potential adverse impact on the
economic conditions and financial markets and our business and financial performance, such as resulting from reduced commercial