Full Press Release Details
AnPac Bio Reports Strong First Quarter in 2021,
with 137.2% Increase in
Revenue and Record Number of Commercial Tests Completed
PHILADELPHIA, May 27, 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 first quarter ended March 31, 2021.
The Company's financial statements and related financial information for the quarter ended March 31, 2021 are unaudited or 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 2021
| Short-term debt was RMB22.4 million (US$3.4 million) as of March 31, 2021, an increase of 171.9% 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 with a fair value of USD$2.5 million. | ||
| As of March 31, 2021, the Company had cash and cash equivalents of RMB9.0 million (US$1.4 million), compared to RMB3.0 million as of December 31, 2020. |
Business Highlights for the First Quarter of 2021
| The Company has developed and completed testing at the end of February 2021 of a new generation of multi-cancer detection sensor named CDA Pro Sensor (CDAPS) which is a technology breakthrough with improved performance over the previous generation cancer detection sensors in a number of areas, including detection signal stability, sensor device yield, and detection sensitivity and specificity. The Company expects that CDAPS will extend the competitiveness for AnPac in the space of cancer screening. | |
| On January 25, 2021, the National Medical Products Administration (NMPA), the regulatory agent for medical products in China, approved the Company to start registration testing of AnPac Bio's class III lung cancer auxiliary diagnosis medical device at its designated medical device testing laboratory, which is a major progress and step towards obtaining a Class III medical device registration certificate. | |
| The Company continued to receive validation on the efficacy of CDA testing through follow-up studies. As of March 31, 2021, AnPac Bio had contacted 23,857 individuals tested using CDA packages in China and received substantive feedback regarding health conditions and disease development from 14,127 individuals. |
AnPac Bio is a biotechnology company focused on early cancer
screening and detection, with 142 issued patents as of March 31, 2021. With two certified clinical laboratories in China and one
CLIA and CAP accredited clinical laboratory and one CLIA registered 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 41,700 clinical samples as of December 31, 2019. 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
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 reason.
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 | March 31, 2021 | March 31, 2021 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| ASSETS | (Unaudited) | (Unaudited) | ||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 3,016 | 9,020 | 1,377 | |||||||||
| Advances to suppliers | 5,588 | 5,295 | 808 | |||||||||
| Accounts receivable, net of allowance for doubtful accounts | 7,792 | 4,443 | 678 | |||||||||
| Amounts due from related parties | 1,277 | 3,773 | 576 | |||||||||
| Inventories | 312 | 972 | 148 | |||||||||
| Other current assets | 3,303 | 9,792 | 1,495 | |||||||||
| Total current assets | 21,288 | 33,295 | 5,082 | |||||||||
| Property and equipment, net | 19,267 | 19,183 | 2,928 | |||||||||
| Land use rights, net | 1,166 | 1,159 | 177 | |||||||||
| Intangible assets, net | 4,596 | 4,498 | 687 | |||||||||
| Goodwill | 2,223 | 2,223 | 339 | |||||||||
| Long-term investments | 883 | 805 | 123 | |||||||||
| Other assets | 464 | 466 | 71 | |||||||||
| TOTAL ASSETS. | 49,887 | 61,629 | 9,407 | |||||||||
| LIABILITIES AND SHAREHOLDERS' DEFICIT | ||||||||||||
| Current liabilities: | ||||||||||||
| Short-term debt | 8,232 | 22,380 | 3,416 | |||||||||
| Accounts payable | 2,127 | 687 | 105 | |||||||||
| Advance from customers | 3,682 | 4,040 | 617 | |||||||||
| Amounts due to related parties | 4,130 | 417 | 64 | |||||||||
| Accrued expenses and other current liabilities | 25,353 | 22,192 | 3,387 | |||||||||
| Total current liabilities | 43,524 | 49,716 | 7,589 | |||||||||
| Deferred tax liabilities | 1,045 | 1,023 | 156 | |||||||||
| Other long-term liabilities | 2,041 | 2,038 | 311 | |||||||||
| TOTAL LIABILITIES. | 46,610 | 52,777 | 8,056 | |||||||||
| 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 12,168,531 shares issued and outstanding as of December 31, 2020 and March 31, 2021, respectively) | 618 | 811 | 124 | |||||||||
| Class B Ordinary shares ((US$0.01 par value per share; 30,000,000 authorized, 2,863,100 shares issued and outstanding as of December 31, 2020 and March 31, 2021) | 191 | 191 | 29 | |||||||||
| Additional paid-in capital | 354,295 | 390,527 | 59,606 | |||||||||
| Accumulated deficit | (356,951 | ) | (385,980 | ) | (58,912 | ) | ||||||
| Accumulated other comprehensive income | 4,795 | 3,191 | 487 | |||||||||
| Total AnPac Bio-Medical Science Co., Ltd. shareholders' equity | 2,948 | 8,740 | 1,334 | |||||||||
| Non-controlling interests | 329 | 112 | 17 | |||||||||
| Total shareholders' equity | 3,277 | 8,852 | 1,351 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 49,887 | 61,629 | 9,407 |
ANPAC BIO-MEDICAL SCIENCE CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE LOSS
(Amounts in thousands of Renminbi ("RMB")
and U.S. dollars ("US$"), except for number of shares and per share data)
| Three Months Ended March 31, | ||||||||||||
| 2020 | 2021 | 2021 | ||||||||||
| RMB | RMB | US$ | ||||||||||
| Revenues: | ||||||||||||
| Cancer screening and detection tests | 884 | 2,182 | 333 | |||||||||
| Physical checkup packages | 37 | 3 | 0 | |||||||||
| Total revenues | 921 | 2,185 | 333 | |||||||||
| Cost of revenues | (620 | ) | (908 | ) | (139 | ) | ||||||
| Gross Profit | 301 | 1,277 | 194 | |||||||||
| Operating expenses: | ||||||||||||
| Selling and marketing expenses | (3,596 | ) | (3,863 | ) | (590 | ) | ||||||
| Research and development expenses | (2,937 | ) | (3,356 | ) | (512 | ) | ||||||
| General and administrative expenses | (19,590 | ) | (19,226 | ) | (2,934 | ) | ||||||
| Impairment of long-term investments | (820 | ) | - | - | ||||||||
| Loss from operations | (26,642 | ) | (25,168 | ) | (3,842 | ) | ||||||
| Non-operating income and expenses: | ||||||||||||
| Interest expense, net | (266 | ) | (624 | ) | (95 | ) | ||||||
| Foreign exchange gain (loss), net | 118 | (139 | ) | (21 | ) | |||||||
| Share of net loss in equity method investments | (21 | ) | (77 | ) | (12 | ) | ||||||
| Other income (expense), net | 537 | (45 | ) | (7 | ) | |||||||
| Change in fair value of convertible debt | 5,041 | (3,215 | ) | (491 | ) | |||||||
| Loss before income taxes | (21,233 | ) | (29,268 | ) | (4,468 | ) | ||||||
| Income tax benefit | 22 | 22 | 3 | |||||||||
| Net loss | (21,211 | ) | (29,246 | ) | (4,465 | ) | ||||||
| Net loss attributable to non-controlling interests | (161 | ) | (217 | ) | (33 | ) | ||||||
| Net loss attributable to ordinary shareholders | (21,050 | ) | (29,029 | ) | (4,432 | ) | ||||||
| Loss per share: | ||||||||||||
| Class A and B Ordinary shares - basic and diluted | (1.95 | ) | (2.43 | ) | (0.37 | ) | ||||||
| Weighted average shares outstanding used in calculating basic and diluted loss per share | ||||||||||||
| Ordinary shares - basic and diluted | 10,771,722 | 11,958,033 | 11,958,033 | |||||||||
| Other comprehensive income, net of tax: | ||||||||||||
| Fair value change relating to Company's own credit risk on convertible loan | (108 | ) | - | - | ||||||||
| Foreign currency translation differences | 2,717 | (1,604 | ) | (245 | ) | |||||||
| Total comprehensive loss | (18,602 | ) | (30,850 | ) | (4,710 | ) | ||||||
| Total comprehensive loss attributable to non-controlling interests | (161 | ) | (217 | ) | (33 | ) | ||||||
| Total comprehensive loss attributable to ordinary shareholders | (18,441 | ) | (30,633 | ) | (4,677 | ) |