Full Press Release Details
AnPac Bio Reports Nine Months Ended September
Same Period Achieved Record Revenue Increased by 55.3%, While Non-GAAP Net Loss Reduced by 6.8%
November 26, 2021 (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 nine months ended September 30, 2021. The Company's financial statements and related financial information for
the quarter ended September 30, 2021 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:
| Short-term debt was approximately RMB30.0 million (US$4.6 million) as of September 30, 2021, an increase of 264.5% from RMB8.2 million at the end of last fiscal year (December 31, 2020). The increase in short-term debt was mainly due to issuance of additional convertible debentures. | |
| As of September 30, 2021, the Company had cash and cash equivalents of approximately RMB5.5 million (US$0.8 million), compared to RMB3.0 million as of December 31, 2020. |
Business Highlights for the Nine Months Ended
| Completed development and evaluation of a second-generation cancer detection sensor with improvements in multiple areas including reduced device cost, improved signal stability, cancer detection sensitivity and specificity. | |
| Launched a joint venture to focus on a novel cancer treatment technology and medical device development which leverages AnPac Bio's deep and extensive knowledge and experience in biophysics and its correlations with cancer occurrence and cancer detection. | |
| As of September 30, 2021, the Company filed 261 patent applications globally, among which 150 patents had been granted, including 20 patents granted in the United States, 66 in greater China (including eight in Taiwan), and 64 in other countries and regions. |
Key Items of Financial Results for the Nine
Months Ended September 30, 2021
Total revenues increased by 55.3% to approximately RMB13.7 million
(US$2.1million) for the nine months ended September 30, 2021 from approximately RMB8.8 million for the same period of 2020, primarily
due to a significant increase in our revenue from cancer screening and detection tests.
Cost of revenues increased by 27.8% to approximately RMB5.6 million
(US$862,000) for the nine months ended September 30, 2021 from approximately RMB4.4 million for the same period of 2020, primarily due
to the increased staff costs.
Gross Profit and Gross Margin
Gross margin was 59.3% for the nine months ended September 30, 2021,
representing a significant increase from 50.5% for the same period of 2020, primarily due to higher selling prices we charged for CDA-based
Selling and Marketing Expenses
Selling and marketing expenses increased by 66.4% to approximately
RMB17.3 million (US$2.7 million) for the nine months ended September 30, 2021 from approximately RMB10.4 million in the same period of
2020, primarily due to higher marketing expenses as a result of our enhanced marketing efforts.
Research and Development Expenses
Research and development expenses increased by 5.7% to approximately
RMB11.9 million (US$1.8 million) for the nine months ended September 30, 2021 from approximately RMB11.2 million for the same period of
2020, primarily due to the increased share-based compensation for our research and development personnel.
General and Administrative Expenses
General and administrative expenses decreased by 3.1% to approximately
RMB58.9 million (US$9.1 million) for the nine months ended September 30, 2021 from approximately RMB60.8 million for the same period of
2020, primarily due to the decreased listing-related professional fees.
Change in fair value of convertible debt
The Company recognized the convertible debt at fair value. For the
nine months ended September 30, 2021 and 2020, the Company recognized an aggregated unrealized loss of approximately RMB9.3 million (US$1.4
million) and unrealized gain of approximately RMB7.3 million, respectively, due to changes in fair value of convertible debt.
Gain from fair value change in equity investment
For the nine months ended September 30, 2020,
the Company recorded a gain from fair value change in equity investment of approximately RMB3.2 million (US$489,000) due to the acquisition
Net loss increased to approximately RMB89.0 million (US$13.8 million)
for the nine months ended September 30, 2021, compared to approximately RMB69.5 million for the same period of 2020. Basic and diluted
loss per share was RMB6.52 (US$1.01) for the nine months ended September 30, 2021, compared to that of RMB6.22 for the same period of
As of September 30, 2021, the Company had cash and cash equivalents
of approximately RMB5.5 million (US$0.8 million), compared to approximately RMB3.0 million as of December 31, 2020.
AnPac Bio is a biotechnology company focused on
early cancer screening and detection, with 150 issued patents as of September 30, 2021. 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 Frost & Sullivan, AnPac Bio ranked third worldwide among companies offering next-generation early cancer screening
and detection technologies in terms of the number of clinical samples for cancer screening and detection, based on approximately 43,980
clinical samples as of September 30, 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
activities due to quarantines and travel restrictions instituted by China, the U.S. and many other countries around the world to
contain the spread of the virus. Additionally, all forward-looking statements are subject to the "Risk Factors" detailed
from time to time in the Company's most recent Annual Report on Form 20-F and other filings with the U.S. Securities and
Exchange Commission. Because of these and other risks, uncertainties and assumptions, undue reliance should not be placed on these
forward-looking statements. In addition, these statements speak only as of the date of this press release and, except as may be
required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any
ANPAC BIO-MEDICAL SCIENCE CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi ("RMB")
and U.S. dollars ("US$"), except for number of shares and per share data)
| December 31, 2020 | September 30, 2021 | September 30, 2021 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 3,016 | 5,463 | 846 | |||||||||
| Advances to suppliers | 5,588 | 4,157 | 644 | |||||||||
| Accounts receivable, net of allowance for doubtful accounts | 7,792 | 7,128 | 1,104 | |||||||||
| Amounts due from related parties | 1,277 | 960 | 149 | |||||||||
| Inventories | 312 | 347 | 54 | |||||||||
| Other current assets | 3,303 | 4,263 | 661 | |||||||||
| Total current assets | 21,288 | 22,318 | 3,458 | |||||||||
| Property and equipment, net | 19,267 | 20,356 | 3,152 | |||||||||
| Land use rights, net | 1,166 | 1,145 | 177 | |||||||||
| Intangible assets, net | 4,596 | 13,196 | 2,043 | |||||||||
| Goodwill | 2,223 | 15,270 | 2,365 | |||||||||
| Long-term investments | 883 | 803 | 124 | |||||||||
| Other assets | 464 | 459 | 71 | |||||||||
| TOTAL ASSETS. | 49,887 | 73,547 | 11,390 | |||||||||
| LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||||||
| Current liabilities: | ||||||||||||
| Short-term debt | 8,232 | 30,006 | 4,647 | |||||||||
| Accounts payable | 2,127 | 1,682 | 261 | |||||||||
| Advance from customers | 3,682 | 4,806 | 744 | |||||||||
| Amounts due to related parties | 4,130 | 3,738 | 579 | |||||||||
| Accrued expenses and other current liabilities | 25,353 | 23,612 | 3,656 | |||||||||
| Total current liabilities | 43,524 | 63,844 | 9,887 | |||||||||
| Deferred tax liabilities | 1,045 | 3,227 | 500 | |||||||||
| Other long-term liabilities | 2,041 | 1,114 | 172 | |||||||||
| TOTAL LIABILITIES. | 46,610 | 68,185 | 10,559 | |||||||||
| Commitments and contingencies | ||||||||||||
| Shareholders' deficit: | ||||||||||||
| Class A Ordinary shares ((US$0.01 par value per share; 70,000,000 shares authorized, 9,192,660 and 14,992,657 shares issued and outstanding as of December 31, 2020 and September 30, 2021, respectively) | 618 | 993 | 154 | |||||||||
| Class B Ordinary shares ((US$0.01 par value per share; 30,000,000 authorized, 2,863,100 and 2,773,100 shares issued and outstanding as of December 31, 2020 and September 30, 2021) | 191 | 185 | 29 | |||||||||
| Additional paid-in capital | 354,295 | 438,407 | 67,886 | |||||||||
| Accumulated deficit | (356,951 | ) | (444,538 | ) | (68,835 | ) | ||||||
| Accumulated other comprehensive income | 4,795 | 4,631 | 717 | |||||||||
| Total AnPac Bio-Medical Science Co., Ltd. shareholders' equity | 2,948 | (322 | ) | (49 | ) | |||||||
| Non-controlling interests | 329 | 5,684 | 880 | |||||||||
| Total shareholders' equity | 3,277 | 5,362 | 831 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 49,887 | 73,547 | 11,390 |