Full Press Release Details
Prenetics Announces First Quarter 2023 Financial Results
HONG KONG, June 05, 2023 Prenetics Global Limited (NASDAQ: PRE) ( Prenetics or the Company ), a leading genomics and
precision oncology company, today announced financial results for the first quarter ended March 31, 2023, along with recent business updates.
First Quarter 2023 Financial Highlights
Recent Business Updates
Danny Yeung, Chief Executive Officer and Co-founder of Prenetics, said 2023 is a
year of evolution for Prenetics as we execute our consumer health and clinical testing business strategy. Guided by our R&D team and Scientific Advisory Board, we are preparing for exciting product launches within CircleDNA and ACT Genomics by year-end. These innovations are projected to significantly bolster our fiscal health, enriching both our top and bottom lines. In order to bolster the strategic advancement in consumer health, we are thrilled to add
Joel to our executive leadership team. Joel and I have known each other for more than 12 years and have been colleagues since both of our previous companies were acquired by Groupon in 2010. Joel s proven track record as a successful serial
entrepreneur and his deep consumer insights underscore our commitment to growing CircleDNA into a leading global consumer health business. I m confident with Joel at the helm, significant growth lies ahead for CircleDNA. We also believe our
vast efforts in consumer health will play a highly synergistic role in our early cancer detection initiatives, in which we are immensely excited about and will share more in due course.
Joel said My entrepreneurial journey to date has been immensely rewarding, driven by my passion for making a difference. After spending the past 15
years building various global consumer platforms, I feel compelled to give back to the community by positively influencing people s health and showcasing the importance of prevention and health. I m excited to join Danny and the
exceptional team at Prenetics to spearhead the consumer health business. Leveraging our existing base of over 300,000 CircleDNA customers, I believe we can continue to grow and make a difference in millions of lives globally. By working with the
best global scientists, doctors and clinicians, we intend to offer a suite of preventive and personalized healthcare solutions to empower people to live longer, happier and healthier lives.
Joel Neoh is a serial entrepreneur and technology executive with over 15 years of top-flight leadership and board
experience. Joel s experience in consumer technology spans sectors such as fintech, e-commerce, digital media, and health & wellness. Most recently, Joel was the founder of Fave, a leading
Southeast Asian fintech platform backed by Sequoia Capital and acquired by Pine Labs, a unicorn company. Joel has been instrumental in accelerating digital payments and financial services for millions of consumers and merchants. Previously, Joel was
the founder of GroupsMore, which was acquired by Groupon. While at Groupon, Joel headed up its Asia Pacific business, overseeing more than 2,000 employees. Joel s entrepreneurial journey started out by
co-founding Says.com, one of Malaysia s largest digital news platforms. Joel is also a Board Director for the Institute of Corporate Directors Malaysia, promoting excellence in corporate governance. His
entrepreneurial success and leadership led to his recognition as Ernst & Young Emerging Entrepreneur of the Year (Malaysia) in 2012, and as a Young Global Leader by the World Economic Forum in 2013.
Prenetics is a leading genomics and
precision oncology company dedicated to transforming patient care through advanced genomic and molecular technologies. Our mission is to revolutionize healthcare by integrating consumer health and genetics, breakthrough technology for early cancer
detection, targeted treatments and genetic risk identification onto one comprehensive platform. We acquired ACT Genomics last December, the only Asia-based company to receive FDA clearance for a comprehensive genomics profiling test for solid
tumors, enabling us to expand our capabilities and offer comprehensive cancer solutions to patients worldwide. Prenetics is listed on NASDAQ with the ticker PRE. To learn more about Prenetics, please visit www.prenetics.com.
Investor Relations Contact:
Strategic Public Relations Group
Forward-Looking Statements
This press release contains forward-looking statements. These statements are made under the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company s goals, targets, projections, outlooks, beliefs, expectations, strategy, plans, objectives of management for future operations of
the Company, and growth opportunities are forward-looking statements. In some cases, forward-looking statements can be identified by words or phrases such as may, will, expect, anticipate,
target, aim, estimate, intend, plan, believe, potential, continue, is/are likely to , poised to , set to or other
similar expressions. Forward-looking statements are based upon estimates and forecasts and reflect the views, assumptions, expectations, and opinions of the Company, which involve inherent risks and uncertainties, therefore they should not be relied
upon as being necessarily indicative of future results. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to: the Company s ability to further
develop and grow its business, including new products and services; its ability to execute on its new business strategy in genomics, precision oncology, and specifically, early detection for cancer; and its ability to identify and execute on M&A
opportunities, especially in precision oncology. In addition to the foregoing factors, you should also carefully consider the other risks and uncertainties described in the Risk Factors section of the Company s most recent
registration statement on Form F-1 and the prospectus therein, and the other documents filed by the Company from time to time with the U.S. Securities and Exchange Commission. All information provided in this
press release is as of the date of this press release, and the Company does not undertake any duty to update such information, except as required under applicable law.
Basis of Presentation
Unaudited Financial Information and Non-IFRS Financial Measures has been provided in the financial statements tables
included at the end of this press release. An explanation of these measures is also included below under the heading Unaudited Financial Information and Non-IFRS Financial Measures.
Unaudited Financial Information and Non-IFRS Financial Measures
To supplement Prenetics consolidated financial statements prepared in accordance with International Financial Reporting Standards ( IFRS ), the
Company is providing non-IFRS measures, adjusted EBITDA, adjusted gross profit and adjusted (loss)/profit attributable to equity shareholders of Prenetics. These
non-IFRS financial measures are not based on any standardized methodology prescribed by IFRS and are not necessarily comparable to similarly-titled measures presented by other companies. Management believes
these non-IFRS financial measures are useful to investors in evaluating the Company s ongoing operating results and trends.
Management is excluding from some or all of its non-IFRS results (1) Employee equity-settled share-based payment
expenses, (2) depreciation and amortization, (3) finance income and exchange gain or loss, net, and (4) certain items that may not be indicative of our business, results of operations, or outlook, including but not limited to non-cash and/or non-recurring items. These non-IFRS financial measures are limited in value because they exclude certain items that may
have a material impact on the reported financial results. Management accounts for this limitation by analyzing results on an IFRS basis as well as a non-IFRS basis and also by providing IFRS measures in the
Company s public disclosures.
In addition, other companies, including companies in the same industry, may not use the same non-IFRS measures or may calculate these metrics in a different manner than management or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of these non-IFRS measures as comparative measures. Because of these limitations, the Company s non-IFRS financial measures should not be considered in isolation from, or as a
substitute for, financial information prepared in accordance with IFRS. Investors are encouraged to review the non-IFRS reconciliations provided in the tables captioned Reconciliation of (loss)/profit
from operations under IFRS and adjusted EBITDA (Non-IFRS) , Reconciliation of gross profit under IFRS and adjusted gross profit (Non-IFRS) and
Reconciliation of (loss)/profit attributable to equity shareholders of Prenetics under IFRS and adjusted (loss)/profit attributable to equity shareholders of Prenetics (Non-IFRS) set forth at the
end of this document.
PRENETICS GLOBAL LIMITED
Unaudited consolidated statements of financial position
(Expressed in United States dollars unless otherwise indicated)
| March 31, | December 31, | |||||||
| 2023 | 2022 | |||||||
| $ | $ | |||||||
| Assets | ||||||||
| Property, plant and equipment | 11,809,757 | 13,102,546 | ||||||
| Intangible assets | 14,463,400 | 14,785,875 | ||||||
| Goodwill | 33,800,276 | 33,800,276 | ||||||
| Interests in associates | 677,339 | 788,472 | ||||||
| Deferred tax assets | 7,626 | 243,449 | ||||||
| Deferred expenses | 5,119,170 | 6,307,834 | ||||||
| Other non-current assets | 1,064,194 | 1,292,462 | ||||||
| Non-current assets | 66,941,762 | 70,320,914 | ||||||
| Deferred expenses | 4,547,611 | 4,577,255 | ||||||
| Inventories | 3,420,013 | 4,534,072 | ||||||
| Trade receivables | 5,718,516 | 41,691,913 | ||||||
| Deposits, prepayments and other receivables | 6,488,436 | 6,889,114 | ||||||
| Amount due from an associate | 181,942 | |||||||
| Financial assets at fair value through profit or loss | 17,537,608 | 17,537,608 | ||||||
| Short-term deposits | 19,872,581 | 19,920,160 | ||||||
| Cash and cash equivalents | 166,335,875 | 146,660,195 | ||||||
| Current assets | 224,102,582 | 241,810,317 | ||||||
| Total assets | 291,044,344 | 312,131,231 | ||||||
| Liabilities | ||||||||
| Deferred tax liabilities | 2,924,369 | 3,185,440 | ||||||
| Warrant liabilities | 2,314,609 | 3,574,885 | ||||||
| Lease liabilities | 3,627,663 | 3,763,230 | ||||||
| Other non-current liabilities | 830,562 | 949,701 | ||||||
| Non-current liabilities | 9,697,203 | 11,473,256 | ||||||
| Trade payables | 7,505,724 | 7,291,133 | ||||||
| Accrued expenses and other current liabilities | 6,460,445 | 15,611,421 | ||||||
| Contract liabilities | 4,917,268 | 5,674,290 | ||||||
| Lease liabilities | 2,779,426 | 2,882,933 | ||||||
| Liabilities for puttable financial instrument 2 | 17,459,600 | 17,138,905 | ||||||
| Tax payable | 8,692,193 | 8,596,433 | ||||||
| Current liabilities | 47,814,656 | 57,195,115 | ||||||
| Total liabilities | 57,511,859 | 68,668,371 | ||||||
| Equity | ||||||||
| Share capital 3 | 15,882 | 13,698 | ||||||
| Reserves | 228,232,194 | 237,050,429 | ||||||
| Total equity attributable to equity shareholders of the Company | 228,248,076 | 237,064,127 | ||||||
| Non-controlling interests | 5,284,409 | 6,398,733 | ||||||
| Total equity | 233,532,485 | 243,462,860 | ||||||
| Total equity and liabilities | 291,044,344 | 312,131,231 |
| March 31, 2023 | December 31, 2022 | |||||||
| Number of authorized shares of $0.0001 each | 500,000,000 | 500,000,000 | ||||||
| Number of issued shares | 158,820,280 | 136,983,110 |
PRENETICS GLOBAL LIMITED
Unaudited consolidated statements of profit or loss and other comprehensive income
(Expressed in United States dollars unless otherwise indicated)
| For the three months ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| $ | $ | $ | ||||||||||
| Revenue | 17,700,142 | 52,320,754 | 92,044,049 | |||||||||
| Direct costs | (9,818,719 | ) | (25,317,570 | ) | (56,006,216 | ) | ||||||
| Gross profit | 7,881,423 | 27,003,184 | 36,037,833 | |||||||||
| Other income and other net gain/(losses) | 1,223,124 | 1,149,335 | (29,011 | ) | ||||||||
| Selling and distribution expenses 4 | (2,642,552 | ) | (2,503,384 | ) | (5,283,146 | ) | ||||||
| Research and development expenses 4 | (3,474,554 | ) | (3,605,801 | ) | (3,821,490 | ) | ||||||
| Restructuring costs in relation to diagnostic business 5 | (2,709,143 | ) | ||||||||||
| Administrative and other operating expenses 4 | (15,032,140 | ) | (14,704,261 | ) | (27,454,847 | ) | ||||||
| (Loss)/profit from operations | (12,044,699 | ) | 4,629,930 | (550,661 | ) | |||||||
| Fair value loss on financial assets at fair value through profit or loss | (7,689,311 | ) | ||||||||||
| Fair value loss on preference shares liabilities | (28,276,001 | ) | ||||||||||
| Fair value gain on warrant liabilities | 1,260,276 | 6,498,365 | ||||||||||
| Share of losses of associates | (112,751 | ) | ||||||||||
| Other finance costs | (79,189 | ) | (116,029 | ) | (2,491,796 | ) | ||||||
| (Loss)/profit before taxation | (10,976,363 | ) | 3,322,955 | (31,318,458 | ) | |||||||
| Income tax credit/(expense) | 2,623 | (1,715,012 | ) | (1,667,438 | ) | |||||||
| (Loss)/profit for the period | (10,973,740 | ) | 1,607,943 | (32,985,896 | ) | |||||||
| Other comprehensive income for the period | ||||||||||||
| Item that may be reclassified subsequently to profit or loss: | ||||||||||||
| Exchange difference on translation of: | ||||||||||||
| - financial statements of subsidiaries outside Hong Kong | (636,502 | ) | 2,759,672 | (530,738 | ) | |||||||
| Total comprehensive income for the period | (11,610,242 | ) | 4,367,615 | (33,516,634 | ) |
| For the three months ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| $ | $ | $ | ||||||||||
| Selling and distribution expenses | 45,255 | 63,033 | 9,492 | |||||||||
| Research and development expenses | 486,507 | 747,059 | 1,249,618 | |||||||||
| Administrative and other operating expenses | 2,574,249 | 2,392,105 | 7,896,731 | |||||||||
| Total equity-settled share-based payment expenses (excluding share-based payment on listing) | 3,106,011 | 3,202,197 | 9,155,841 |
| For the three months ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| $ | $ | $ | ||||||||||
| Impairment losses on property, plant and equipment | 2,709,143 |
PRENETICS GLOBAL LIMITED
Unaudited consolidated statements of profit or loss and other comprehensive income
(Expressed in United States dollars unless otherwise indicated)
| For the three months ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| $ | $ | $ | ||||||||||
| (Loss)/profit attributable to: | ||||||||||||
| Equity shareholders of Prenetics | (10,398,430 | ) | 1,607,942 | (32,985,850 | ) | |||||||
| Non-controlling interests | (575,310 | ) | 1 | (46 | ) | |||||||
| (10,973,740 | ) | 1,607,943 | (32,985,896 | ) | ||||||||
| Total comprehensive income attributable to: | ||||||||||||
| Equity shareholders of Prenetics | (10,495,918 | ) | 4,367,614 | (33,516,588 | ) | |||||||
| Non-controlling interests | (1,114,324 | ) | 1 | (46 | ) | |||||||
| (11,610,242 | ) | 4,367,615 | (33,516,634 | ) | ||||||||
| (Loss)/earnings per share: | ||||||||||||
| Basic | (0.07 | ) | 0.01 | (1.06 | ) | |||||||
| Diluted | (0.07 | ) | 0.01 | (1.06 | ) | |||||||
| Weighted average number of common shares: | ||||||||||||
| Basic | 157,839,309 | 115,386,543 | 31,207,949 | |||||||||
| Diluted | 157,839,309 | 162,708,402 | 31,207,949 |
PRENETICS GLOBAL LIMITED
Unaudited Financial Information and Non-IFRS Financial Measures
(Expressed in United States dollars unless otherwise indicated)
Reconciliation of (loss)/profit from operations under IFRS and adjusted EBITDA (Non-IFRS)
| For the three months ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| $ | $ | $ | ||||||||||
| (Loss)/profit from operations under IFRS | (12,044,699 | ) | 4,629,930 | (550,661 | ) | |||||||
| Employee equity-settled share-based payment expenses | 3,124,189 | 3,241,872 | 9,377,115 | |||||||||
| Depreciation and amortization | 2,137,814 | 1,333,231 | 2,155,295 | |||||||||
| Restructuring costs in relation to diagnostic business | 2,709,143 | |||||||||||
| Other strategic financing, transactional expense and non-recurring expenses | 2,238,906 | 957,150 | 1,695,185 | |||||||||
| Finance income, exchange gain or loss, net | (1,146,164 | ) | (751,171 | ) | 31,772 | |||||||
| Adjusted EBITDA (Non-IFRS) | (5,689,954 | ) | 12,120,155 | 12,708,706 |
Reconciliation of gross profit under IFRS and
adjusted gross profit (Non-IFRS)
| For the three months ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| $ | $ | $ | ||||||||||
| Gross profit under IFRS | 7,881,423 | 27,003,184 | 36,037,833 | |||||||||
| Depreciation and amortization | 384,326 | 527,722 | 417,619 | |||||||||
| Adjusted gross profit (Non-IFRS) | 8,265,749 | 27,530,906 | 36,455,452 |
Reconciliation of (loss)/profit attributable to equity shareholders of Prenetics under IFRS and adjusted (loss)/profit
attributable to equity shareholders of Prenetics (Non-IFRS)
| For the three months ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| $ | $ | $ | ||||||||||
| (Loss)/profit attributable to equity shareholders of Prenetics under IFRS | (10,398,430 | ) | 1,607,942 | (32,985,850 | ) | |||||||
| Employee equity-settled share-based payment expenses | 3,124,189 | 3,241,872 | 9,377,115 | |||||||||
| Other strategic financing, transactional expense and non-recurring expenses | 2,238,906 | 957,150 | 1,695,185 | |||||||||
| Fair value loss on preference shares liabilities | 28,276,001 | |||||||||||
| Fair value gain on warrant liabilities | (1,260,276 | ) | (6,498,365 | ) | ||||||||
| Fair value loss on financial assets at fair value through profit or loss | 7,689,311 | |||||||||||
| Restructuring costs in relation to diagnostic business | 2,709,143 | |||||||||||
| Adjusted (loss)/profit attributable to equity shareholders of Prenetics (Non-IFRS) | (6,295,611 | ) | 9,707,053 | 6,362,451 |