REG - Burning Rock Biotech - BNR Reports Second Quarter 2024 Financial Results
23/08/2024 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240823:nRSW5686Ba&default-theme=true
RNS Number : 5686B Burning Rock Biotech Limited 23 August 2024
Burning Rock Reports Second Quarter 2024 Financial Results
GUANGZHOU, China, August 23, 2024-Burning Rock Biotech Limited (NASDAQ: BNR
and LSE: 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 June 30, 2024.
Recent Business Updates
· Therapy Selection
o Presented study results on small-cell lung cancer and colorectal cancer at
the ASCO in June 2024. "The efficacy and safety of high dose Almonertinib in
untreated EGFR-mutated NSCLC with brain metastases, including biomarker
analysis" and "Individualized tumor-informed circulating tumor DNA analysis
for molecular residual disease detection in predicting recurrence and efficacy
of adjuvant chemotherapy in colorectal cancer".
· Pharma Services
o New companion diagnostics (CDx) collaboration announced with Bayer in
China.
Second Quarter 2024 Financial Results
Total Revenues were RMB135.5 million (US$18.7 million) for the three months
ended June 30, 2024, representing a 7.3% decrease from RMB146.3 million for
the same period in 2023, as we transition from central-lab to more in-hospital
based testing. Importantly, in-hospital segment continued its double-digit
growth.
· Revenue generated from in-hospital business was RMB59.9 million
(US$8.2 million) for the three months ended June 30, 2024, representing a
11.2% increase from RMB53.8 million for the same period in 2023, driven by an
increase in sales volume.
· Revenue generated from central laboratory business was RMB48.8
million (US$6.7 million) for the three months ended June 30, 2024,
representing a 26.4% decrease from RMB66.2 million for the same period in
2023, primarily attributable to a decrease in the number of tests, as we
continued our transition towards in-hospital testing.
· Revenue generated from pharma research and development services
was RMB26.9 million (US$3.7 million) for the three months ended June 30, 2024,
representing a 2.6% increase from RMB26.2 million for the same period in 2023,
primarily attributable to an increased development and testing services
performed for our pharma customers.
Cost of revenues was RMB40.1 million (US$5.5 million) for the three months
ended June 30, 2024, representing an 12.5% decrease from RMB45.8 million for
the same period in 2023, primarily due to (i) a decrease in cost of central
laboratory business, which was in line with the decrease in revenue generated
from this business; and (ii) a decrease in amortization expense for all kinds
of business.
Gross profit was RMB95.4 million (US$13.1 million) for the three months ended
June 30, 2024, representing a 5.0% decrease from RMB100.4 million for the same
period in 2023. Gross margin was 70.4% for the three months ended June 30,
2024, compared to 68.7% for the same period in 2023. By channel, gross margin
of central laboratory business was 78.8% for the three months ended June 30,
2024, compared to 78.3% during the same period in 2023; gross margin of
in-hospital business was 73.6% for the three months ended June 30, 2024,
compared to 62.0% during the same period in 2023, primarily due to a decrease
in amortization; gross margin of pharma research and development services was
48.2% for the three months ended June 30, 2024, compared to 58.0% during the
same period of 2023, primarily due to a decrease in test volume of higher
margin projects.
Non-GAAP gross profit, which excludes depreciation and amortization expenses,
was RMB101.9 million (US$14.0 million) for the three months ended June 30,
2024, representing a 6.8% decrease from RMB109.4 million for the same period
in 2023. Non-GAAP gross margin was 75.2% for the three months ended June 30,
2024, compared to 74.8% for the same period in 2023.
Operating expenses were RMB206.7 million (US$28.4 million) for the three
months ended June 30, 2024, representing a 12.5% decrease from RMB236.1
million for the same period in 2023. The decrease was primarily driven by
budget control measures and headcount reduction to improve the Company's
operating efficiency.
· Research and development expenses were RMB65.0 million
(US$8.9 million) for the three months ended June 30, 2024, representing a
32.2% decrease from RMB95.8 million for the same period in 2023, primarily due
to (i) a decrease in staff cost resulted from the reorganization of our
research and development department to improve operating efficiency; (ii) a
decrease in the expenditure for research projects; and (iii) a decrease in
amortized expenses for office building decoration.
· Selling and marketing expenses were RMB48.9 million (US$6.7
million) for the three months ended June 30, 2024, representing a 31.0%
decrease from RMB70.8 million for the same period in 2023, primarily due to
(i) a decrease in staff cost resulted from the reorganization of the sales
department and improvement in operating efficiency; (ii) a decrease in
conference fee; and (iii) a decrease in travel expense.
· General and administrative expenses were RMB92.8 million
(US$12.8 million) for the three months ended June 30, 2024, representing a
33.5% increase from RMB69.5 million for the same period in 2023, primarily due
to an increase in amortized expense on share-based compensation.
Net loss was RMB108.0 million (US$14.9 million) for the three months ended
June 30, 2024, compared to RMB131.2 million for the same period in 2023.
Cash, cash equivalents, restricted cash and short-term investments were
RMB533.0 million (US$73.3 million) as of June 30, 2024.
About Burning Rock
Burning Rock Biotech Limited (NASDAQ: BNR and LSE: 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, 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.
Non-GAAP Measures
In evaluating the business, the Company considers and uses non-GAAP measures,
such as non-GAAP gross profit and non-GAAP gross margin, as supplemental
measures to review and assess operating performance. The presentation of these
non-GAAP financial measures is not intended to be considered in isolation or
as a substitute for the financial information prepared and presented in
accordance with accounting principles generally accepted in the United States
of America ("U.S. GAAP"). The company defines non-GAAP gross profit as gross
profit excluding depreciation and amortization. The company defines non-GAAP
gross margin as gross margin excluding depreciation and amortization.
The company presents these non-GAAP financial measures because they are used
by management to evaluate operating performance and formulate business plans.
The company believe non-GAAP gross profit and non-GAAP gross margin excluding
non-cash impact of depreciation and amortization reflect the company's ongoing
business operations in a manner that allows more meaningful period-to-period
comparisons.
Contact: IR@brbiotech.com
Selected Operating Data
As of
June 30, September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024
2023
In-hospital Channel:
Pipeline partner hospitals((1)) 30 29 28 28 29
Contracted partner hospitals((2)) 50 55 59 59 59
Total number of partner hospitals 80 84 87 87 88
((1)) Refers to hospitals that are in the process of establishing in-hospital
laboratories, laboratory equipment procurement or installation, staff training
or pilot testing using the Company's products.
((2)) Refers to hospitals that have entered into contracts to purchase the Company's
products for use on a recurring basis in their respective in-hospital
laboratories the Company helped them establish. Kit revenue is generated from
contracted hospitals.
((1))
Refers to hospitals that are in the process of establishing in-hospital
laboratories, laboratory equipment procurement or installation, staff training
or pilot testing using the Company's products.
((2))
Refers to hospitals that have entered into contracts to purchase the Company's
products for use on a recurring basis in their respective in-hospital
laboratories the Company helped them establish. Kit revenue is generated from
contracted hospitals.
Selected Financial Data
For the three months ended
Revenues June 30, September 30, 2023 December March 31, 2024 June 30, 2024
2023 31, 2023
(RMB in thousands)
Central laboratory channel 66,239 66,239 53,481 51,288 47,614 48,773
In-hospital channel 53,835 53,835 54,496 28,809 57,387 59,872
Pharma research and development channel 26,194 26,194 19,589 40,988 20,622 26,888
Total revenues 146,268 127,566 121,085 125,623 135,533
For the three months ended
Gross profit June 30, September 30, 2023 December March 31, 2024 June 30, 2024
2023 31, 2023
(RMB in thousands)
Central laboratory channel 51,876 41,487 41,886 37,002 38,424
In-hospital channel 33,353 33,353 35,459 35,459 12,910 39,192 44,058
Pharma research and development channel 15,193 8,974 23,317 9,500 12,956
Total gross profit 100,422 85,920 78,113 85,694 95,438
For the three months ended
Share-based compensation expenses June 30, September 30, 2023 December March 31, 2024 June 30, 2024
2023 31, 2023
(RMB in thousands)
Cost of revenues 627 680 654 596 464
Research and development expenses 15,301 12,161 12,401 12,287 12,008
Selling and marketing expenses 3,389 2,848 1,816 508 1,232
General and administrative expenses 18,502 57,704 56,472 55,990 54,407
Total share-based compensation expenses 37,819 73,393 71,343 69,381 68,111
Burning Rock Biotech Limited
Unaudited Condensed Statements of Comprehensive Loss
(in thousands, except for number of shares and per share data)
For the three months ended
June 30, September 30, 2023 December 31,2023 March 31, 2024 June 30, 2024 June 30, 2024
2023
RMB RMB RMB RMB RMB US$
Revenues 146,268 127,566 121,085 125,623 135,533 18,650
Cost of revenues (45,846) (41,646) (42,972) (39,929) (40,095) (5,517)
Gross profit 100,422 85,920 78,113 85,694 95,438 13,133
Operating expenses:
Research and development expenses (95,779) (83,701) (73,119) (65,985) (64,952) (8,938)
Selling and marketing expenses (70,842) (62,310) (49,785) (46,856) (48,907) (6,730)
General and administrative expenses (69,525) (118,724) (121,533) (98,681) (92,794) (12,769)
Total operating expenses (236,146) (264,735) (244,437) (211,522) (206,653) (28,437)
Loss from operations (135,724) (178,815) (166,324) (125,828) (111,215) (15,304)
Interest income 5,255 4,018 5,539 4,038 3,187 439
Other income (expense), net (118) (157) 160 434 (82) (11)
Foreign exchange (loss) gain, net （210) 423 (517) (13) 262 36
Loss before income tax (130,797) (174,531) (161,142) (121,369) (107,848) (14,840)
Income tax expenses (445) (450) (1,071) (180) (190) (26)
Net loss (131,242) (174,981) (162,213) (121,549) (108,038) (14,866)
Net loss attributable to Burning Rock Biotech Limited's shareholders (131,242) (174,981) (162,213) (121,549) (108,038) (14,866)
Net loss attributable to ordinary shareholders (131,242) (174,981) (162,213) (121,549) (108,038) (14,866)
Loss per share for class A and class B ordinary shares:
Class A ordinary shares - basic and diluted (1.28) (1.71) (1.58) (1.19) (1.05) (0.14)
Class B ordinary shares - basic and diluted (1.28) (1.71) (1.58) (1.19) (1.05) (0.14)
Weighted average shares outstanding used in loss per share computation:
Class A ordinary shares - basic and diluted 85,151,052 85,000,869 85,071,360 85,219,188 85,271,858 85,271,858
Class B ordinary shares - basic and diluted 17,324,848 17,324,848 17,324,848 17,324,848 17,324,848 17,324,848
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustments 14,829 (1,955) (3,026) 590 940 129
Total comprehensive loss (116,413) (176,936) (165,239) (120,959) (107,098) (14,737)
Total comprehensive loss attributable to Burning Rock Biotech Limited's (116,413) (176,936) (165,239) (120,959) (107,098) (14,737)
shareholders
Burning Rock Biotech Limited
Unaudited Condensed Statements of Comprehensive Loss
(in thousands, except for number of shares and per share data)
For the six months ended
June 30, June 30, June 30,
2023 2024 2024
RMB RMB US$
Revenues 288,784 261,156 35,937
Cost of revenues (89,590) (80,024) (11,012)
Gross profit 199,194 181,132 24,925
Operating expenses:
Research and development expenses (190,196) (130,937) (18,018)
Selling and marketing expenses (135,616) (95,763) (13,177)
General and administrative expenses (197,564) (191,475) (26,349)
Total operating expenses (523,376) (418,175) (57,544)
Loss from operations (324,182) (237,043) (32,619)
Interest income 8,399 7,225 994
Other income, net 481 352 48
Foreign exchange loss, net (326) 249 34
Loss before income tax (315,628) (229,217) (31,543)
Income tax expenses (867) (370) (51)
Net loss (316,495) (229,587) (31,594)
Net loss attributable to Burning Rock Biotech Limited's shareholders (316,495) (229,587) (31,594)
Net loss attributable to ordinary shareholders (316,495) (229,587) (31,594)
Loss per share for class A and class B ordinary shares:
Class A ordinary shares - basic and diluted (3.09) (2.24) (0.31)
Class B ordinary shares - basic and diluted (3.09) (2.24) (0.31)
Weighted average shares outstanding used in loss per share computation:
Class A ordinary shares - basic and diluted 85,108,555 85,246,969 85,246,969
Class B ordinary shares - basic and diluted 17,324,848 17,324,848 17,324,848
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustments 9,170 1,530 211
Total comprehensive loss (307,325) (228,057) (31,383)
Total comprehensive loss attributable to Burning Rock Biotech Limited's (307,325) (228,057) (31,383)
shareholders
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
As of
December 31, 2023 June 30, June 30,
2024 2024
RMB RMB US$
ASSETS
Current assets:
Cash and cash equivalents 615,096 532,542 73,280
Restricted cash 120 505 69
Accounts receivable, net 126,858 153,641 21,142
Contract assets, net 22,748 20,018 2,755
Inventories, net 69,020 65,805 9,056
Prepayments and other current assets, net 50,254 28,460 3,916
Convertible note receivable - 5,320 732
Total current assets 884,096 806,291 110,950
Non-current assets:
Equity method investment 337 247 34
Convertible note receivable 5,320 - -
Property and equipment, net 131,912 100,716 13,860
Operating right-of-use assets 12,284 105,429 14,508
Intangible assets, net 964 724 100
Other non-current assets 5,088 9,976 1,372
Total non-current assets 155,905 217,092 29,874
TOTAL ASSETS 1,040,001 1,023,383 140,824
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets (Continued)
(in thousands)
As of
December 31, 2023 June 30, June 30,
2024 2024
RMB RMB US$
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 18,061 25,870 3,560
Deferred revenue 130,537 119,352 16,423
Accrued liabilities and other current liabilities 104,935 86,300 11,876
Customer deposits 1,197 1,197 165
Current portion of operating lease liabilities 8,634 26,922 3,705
Total current liabilities 263,364 259,641 35,729
Non-current liabilities:
Non-current portion of operating lease liabilities 3,690 80,988 11,144
Other non-current liabilities 4,537 4,908 676
Total non-current liabilities 8,227 85,896 11,820
TOTAL LIABILITIES 271,591 345,537 47,549
Shareholders' equity:
Class A ordinary shares 116 116 16
Class B ordinary shares 21 21 3
Additional paid-in capital 4,849,337 4,986,830 686,211
Treasury stock (65,896) (65,896) (9,068)
Accumulated deficits (3,853,635) (4,083,222) (561,870)
Accumulated other comprehensive loss (161,533) (160,003) (22,017)
Total shareholders' equity 768,410 677,846 93,275
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 1,040,001 1,023,383 140,824
Burning Rock Biotech Limited
Unaudited Condensed Statements of Cash Flows
(in thousands)
For the three months ended
June 30, 2023 June 30, June 30,
2024 2024
RMB RMB US$
Net cash used in operating activities (79,204) (40,836) (5,619)
Net cash used in investing activities (2,928) (227) (31)
Net cash used in financing activities (1,003) - -
Effect of exchange rate on cash, cash equivalents and restricted cash 13,271 1,436 196
Net decrease in cash, cash equivalents and restricted cash (69,864) (39,627) (5,454)
Cash, cash equivalents and restricted cash at the beginning of period 803,142 572,674 78,803
Cash, cash equivalents and restricted cash at the end of period 733,278 533,047 73,349
For the six months ended
June 30, June 30, June 30,
2023 2024 2024
RMB RMB US$
Net cash used in operating activities (192,347) (81,045) (11,152)
Net cash used in investing activities (6,987) (2,613) (360)
Net cash used in financing activities (1,035) - -
Effect of exchange rate on cash, cash equivalents and restricted cash 8,379 1,489 204
Net decrease in cash, cash equivalents and restricted cash (191,990) (82,169) (11,308)
Cash, cash equivalents and restricted cash at the beginning of period 925,268 615,216 84,657
Cash, cash equivalents and restricted cash at the end of period 733,278 533,047 73,349
Burning Rock Biotech Limited
Reconciliations of GAAP and Non-GAAP Results
For the three months ended
June 30, September 30, 2023 December 31, 2023 March 31, June 30, 2024
2023 2024
(RMB in thousands)
Gross profit:
Central laboratory channel 51,876 41,487 41,886 37,002 38,424
In-hospital channel 33,353 35,459 12,910 39,192 44,058
Pharma research and development channel 15,193 8,974 23,317 9,500 12,956
Total gross profit 100,422 85,920 78,113 85,694 95,438
Add: depreciation and amortization:
Central laboratory channel 2,645 2,550 2,414 1,919 1,226
In-hospital channel 2,637 2,751 2,728 1,524 824
Pharma research and development channel 3,665 3,863 3,808 3,856 4,417
Total depreciation and amortization included in cost of revenues 8,947 9,164 8,950 7,299 6,467
Non-GAAP gross profit：
Central laboratory channel 54,521 44,037 44,300 38,921 39,650
In-hospital channel 35,990 38,210 15,638 40,716 44,882
Pharma research and development channel 18,858 12,837 27,125 13,356 17,373
Total non-GAAP gross profit 109,369 95,084 87,063 110,386 92,993 101,905
Non-GAAP gross margin：
Central laboratory channel 82.3% 82.3% 86.4% 81.7% 81.3%
In-hospital channel 66.9% 70.1% 54.3% 70.9% 75.0%
Pharma research and development channel 72.0% 65.5% 66.2% 64.8% 64.6%
Total non-GAAP gross margin 74.8% 74.5% 71.9% 74.0% 75.2%
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR EAAPDALPLEEARecent news on Burning Rock Biotech
See all newsREG - Official List Burning Rock Biotech - Removal - Burning Rock Biotech Limited
AnnouncementREG - Stock Exch Notice Burning Rock Biotech - Cancellation - Burning Rock Biotech Limited
AnnouncementREG - Burning Rock Biotech - BNR Reports Second Quarter 2024 Financial Results
AnnouncementREG - Burning Rock Biotech - BNR Announces Expected Delisting of ADS
AnnouncementREG - Burning Rock Biotech - 1st Quarter Results
Announcement