Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2022

Commission File Number: 001-39316

 

 

BURNING ROCK BIOTECH LIMITED

(Registrant’s Name)

 

 

No.5 Xingdao Ring Road North, International Bio Island

Guangzhou, Guangdong

People’s Republic of China

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  ☒            Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


INCORPORATION BY REFERENCE

Exhibit 99.1 (excluding the paragraph under the heading “Revised 2022 Financial Guidance,” the paragraphs under the heading “Non-GAAP Measures,” the table under the heading “Burning Rock Biotech Limited Reconciliations of GAAP and Non-GAAP Results,” and other discussions on non-GAAP measures therein) of this current report on Form 6-K (the “Report”) shall be incorporated by reference into the Company’s registration statements on Form F-3, which became effective on September 30, 2022 (File no. 333-264577).

 

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EXHIBIT INDEX

 

Number

  

Description of Document

Exhibit 99.1    Press release

 

3


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Burning Rock Biotech Limited
By:   /s/ Leo Li
Name:   Leo Li
Title:   Chief Financial Officer

Date: November 16, 2022

 

4

EX-99.1

Exhibit 99.1

Burning Rock Reports Third Quarter 2022 Financial Results

GUANGZHOU, China, November 16, 2022—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 September 30, 2022.

Recent Business Updates

 

   

Corporate

 

   

Listed on the Main Market of the London Stock Exchange (the “LSE”) by way of a direct listing on November 1, 2022, while Burning Rock’s ADSs will continue to be listed and traded on the Nasdaq Global Market, with those ADSs being fully fungible with the ADSs listed on the LSE.

 

   

Therapy Selection and Minimal Residual Disease (MRD)

 

   

In-hospital strategy continues to drive growth uplift despite negative Covid impact. In-hospital volumes grew 24% year-over-year in the third quarter of 2022.

 

   

MRD volumes continue to ramp up following commercial launch in March 2022, with approximately 700 tests completed in the third quarter of 2022, more than doubling the volumes in the second quarter of 2022.

 

   

Early Detection

 

   

PROMISE study (2,035 participants) for 9-cancer test results presented at European Society for Medical Oncology (ESMO) Congress 2022 in September 2022. Overall sensitivity achieved 83.7% for 9 cancers at specificity of 98.3%, with methylation contributing majority of positive detections compared to protein and mutation. Tissue origin prediction accuracy achieved 90.9% for the top 2 organs.

 

   

Commercialization of our blood-based, 6-cancer early detection test gaining initial traction, with product onboarding completed at a few hospitals.

 

   

Pharma Services

 

   

The total value of new contracts we entered into from January to September 2022 amounted to RMB198 million, representing approximately 38% increase from the same period of 2021.

 

   

Starting to work with BeiGene on initial clinical studies using our personalized MRD test brPROPHETTM .

 

   

New companion diagnostics (CDx) development announced with Eli Lilly and Company in China, for the RET inhibitor selpercatinib.

Third Quarter 2022 Financial Results

Revenues were RMB154.6 million (US$21.7 million) for the three months ended September 30, 2022, representing a 22.1% increase from RMB126.6 million for the same period in 2021.

 

   

Revenue generated from central laboratory business was RMB90.0 million (US$12.7 million) for the three months ended September 30, 2022, representing a 14.2% increase from RMB78.8 million for the same period in 2021, driven by revenue increase from monitoring packages that consist of multiple tests per package.

 

   

Revenue generated from in-hospital business was RMB49.6 million (US$7.0 million) for the three months ended September 30, 2022, representing a 13.5% increase from RMB43.7 million for the same period in 2021, primarily attributable to in-hosiptal sales volume growth in Shanghai and Beijing as COVID impact lessened in the third quarter of 2022.

 

   

Revenue generated from pharma research and development services was RMB15.0 million (US$2.1 million) for the three months ended September 30, 2022, representing a 267.4% increase from RMB4.1 million for the same period in 2021, primarily attributable to increased development and testing services performed for our pharma customers.

 

1


Cost of revenues was RMB46.0 million (US$6.5 million) for the three months ended September 30, 2022, representing a 31.5% increase from RMB35.0 million for the same period in 2021, primarily due to an increase in testing and selling volume as well as rental expense and renovation depreciation in relation to our new laboratory that commenced use in January 2022.

Gross profit was RMB108.6 million (US$15.3 million) for the three months ended September 30, 2022, representing a 18.6% increase from RMB91.6 million for the same period in 2021. Gross margin was 70.2% for the three months ended September 30, 2022, which decreased from 72.3% for the same period in 2021, primarily due to an increased income from monitoring packages, offset by an increased depreciation in relation to our new laboratory.

Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB117.0 million (US$16.4 million) for the three months ended September 30, 2022, representing a 25.8% increase from RMB93.0 million for the same period in 2021. Non-GAAP gross margin was 75.7% for the three months ended September 30, 2022, compared to 73.4% for the same period in 2021.

Operating expenses were RMB343.2 million (US$48.3 million) for the three months ended September 30, 2022, representing a 30.7% increase from RMB262.6 million for the same period in 2021.

 

   

Research and development expenses were RMB109.4 million (US$15.4 million) for the three months ended September 30, 2022, representing a 57.2% increase from RMB69.6 million for the same period in 2021, primarily due to (i) an increase in clinical program expenses for early cancer detection; and (ii) an increase in amortized expense on share-based compensation, offset in part by a decrease in staff cost due to organizational restructuring.

 

   

Selling and marketing expenses were RMB90.3 million (US$12.7 million) for the three months ended September 30, 2022, representing a 17.7% increase from RMB76.7 million for the same period in 2021, primarily due to (i) an increase in staff cost resulted from increase in headcount; (ii) an increase in conference fee and (iii) an increase amortized expense on share-based compensation. Sequentially, selling and marketing expenses in the third quarter decreased by 14.5% compared to the second quarter of 2022, as our sales reorganization and operating efficiency improvement initiative started to generate initial results. We will continue to focus on improving operating efficiency going forward.

 

   

General and administrative expenses were RMB143.5 million (US$20.2 million) for the three months ended September 30, 2022, representing a 23.4% increase from RMB116.3 million for the same period in 2021, primarily due to (i) an increase in depreciation expenses for a new building; (ii) an increase in allowance for credit loss in relation to accounts receivables; and (iii) an increase amortized expense on share-based compensation.

Net loss was RMB231.5 million (US$32.5 million) for the three months ended September 30, 2022, compared to RMB170.5 million for the same period in 2021.

Net cash used in operating activities was RMB135.5 million (US$19.0 million) for the three months ended September 30, 2022, compared to RMB133.4 million for the same period in 2021. The balance of cash, cash equivalents, restricted cash and short-term investments was RMB1,014.0 million (US$142.5 million) as of September 30, 2022.

Revised 2022 Financial Guidance

We believe that we have achieved strong, above-industry growth in the first nine months of 2022, generating revenues of RMB421 million, an increase of 17% compared to the same period of 2021. This is below the implied full-year growth rate of our initial guidance at the beginning of the year, primarily due to an out-sized Covid impact in Shanghai in the second quarter and to a lesser extent, Covid-related disruptions in other regions of China from time to time. We have observed another significant wave of Covid cases sweeping through many large cities in China since the start of October, particularly in Guangzhou, which is one of our key markets and where our central lab is located. We are taking a cautious view now and project a drop in revenues in the fourth quarter compard to the same period last year, which was a strong quarter and relatively free of large Covid impacts. We therefore revise our 2022 full-year revenue guidance to a growth of approxiately 5% compared to 2021.

 

2


Transition of Chief Operating Officer to Chief Scientific Officer

Effective November 2022, Shannon Chuai, our chief operating officer, is taking on a new role of chief scientific officer of Burning Rock. In her new role, Shannon will lead key projects of our pipeline development, provide senior oversight on our early cancer detection clinical programs and our engagement on product registration with the NMPA and other medical regulatory bodies. Shannon continues to serve as a director on our board. The company’s respective business units will report directly to our CEO, Yusheng Han.

Conference Call Information

Burning Rock will host a conference call to discuss the third quarter 2022 financial results at 8:30 a.m. U.S. Eastern Time (9:30 p.m. Hong Kong time) on November 16, 2022.

Please register in advance of the conference using the link provided below and dial in 15 minutes prior to the call, using participant dial-in numbers and unique registrant ID which would be provided upon registering.

PRE-REGISTER LINK: https://register.vevent.com/register/BI96c581babaf44021ab6c34af9f7ce42b.

Additionally, a live and archived webcast of the conference call will also be available on the company’s investor relations website at http://ir.brbiotech.com or through link https://edge.media-server.com/mmc/p/8fj2edsi.

A replay of the webcast will be available for 12 months via the same link above.

About Burning Rock

Burning Rock Biotech Limited (NASDAQ: BNR; 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.

 

3


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

 

4


Selected Operating Data

 

     For the three months ended  
     March 31,
2021
     June 30,
2021
     September 30,
2021
     December 31,
2021
     March 31,
2022
     June 30,
2022
     September 30,
2022
 

Central Laboratory Channel:

                    

Number of patients tested

     7,716        8,155        7,808        8,235        7,743        8,060        7,989  

Number of ordering physicians(1)

     1,082        1,013        920        917        994        767        897  

Number of ordering hospitals(2)

     303        300        287        306        318        264        257  

 

(1) 

Represents physicians who on average order at least one test from us every month during a relevant period in the central laboratory channel.

(2) 

Represents hospitals whose residing physicians who on average order at least one test from us every month during a relevant period in the central laboratory channel.

 

     As of  
     March 31,
2021
     June 30,
2021
     September 30,
2021
     December 31,
2021
     March 31,
2022
     June 30,
2022
     September 30,
2022
 

In-hospital Channel:

                    

Pipeline partner hospitals(1)

     22        22        24        23        24        25        22  

Contracted partner hospitals(2)

     32        34        34        41        41        43        47  

Total number of partner hospitals

     54        56        58        64        65        68        69  

 

(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.

 

5


Selected Financial Data

 

     For the three months ended  
Revenues    March 31,
2021
     June 30,
2021
     September 30,
2021
     December 31,
2021
     March 31,
2022
     June 30,
2022
     September 30,
2022
 
                                                  
     (RMB in thousands)  

Central laboratory channel

     74,561        79,999        78,817        85,976        74,211        78,597        89,992  

In-hospital channel

     28,994        40,502        43,714        51,906        48,957        34,177        49,636  

Pharma research and development channel

     3,068        6,778        4,084        9,463        12,356        18,072        15,003  

Total revenues

     106,623        127,279        126,615        147,345        135,524        130,846        154,631  

 

     For the three months ended  
Gross profit    March 31,
2021
     June 30,
2021
     September 30,
2021
     December 31,
2021
     March 31,
2022
     June 30,
2022
     September 30,
2022
 
                                                  
     (RMB in thousands)  

Central laboratory channel

     55,212        58,681        58,387        65,985        50,574        57,575        69,991  

In-hospital channel

     20,070        29,426        31,111        34,194        33,396        20,012        31,593  

Pharma research and development channel

     1,658        2,124        2,098        5,200        3,610        5,015        7,010  

Total gross profit

     76,940        90,231        91,596        105,379        87,580        82,602        108,594  

 

     For the three months ended  
Share-based compensation expenses    March 31,
2021
     June 30,
2021
     September 30,
2021
    December 31,
2021
    March 31,
2022
     June 30,
2022
     September 30,
2022
 
                                                
     (RMB in thousands)  

Cost of revenues

     339        406        267       492       365        441        481  

Research and development expenses

     22,404        20,825        (9,559     (4,033     12,299        11,923        13,978  

Selling and marketing expenses

     2,633        2,809        2,044       2,126       1,774        2,158        2,346  

General and administrative expenses

     59,382        59,369        60,803       62,126       65,715        62,615        61,041  

Total share-based compensation expenses

     84,758        83,409        53,555       60,711       80,153        77,137        77,846  

 

6


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  
    March 31,
2021
    June 30,
2021
    September 30,
2021
    December 31,
2021
    March 31,
2022
    June 30,
2022
    September 30,
2022
    September 30,
2022
 
    RMB     RMB     RMB     RMB     RMB     RMB     RMB     US$  

Revenues

    106,623       127,279       126,615       147,345       135,524       130,846       154,631       21,738  

Cost of revenues

    (29,683     (37,048     (35,019     (41,966     (47,944     (48,244     (46,037     (6,471
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    76,940       90,231       91,596       105,379       87,580       82,602       108,594       15,267  

Operating expenses:

               

Research and development expenses

    (77,414     (108,071     (69,649     (112,724     (119,496     (92,112     (109,433     (15,384

Selling and marketing expenses

    (55,130     (68,058     (76,687     (103,221     (89,211     (105,634     (90,275     (12,691

General and administrative expenses

    (116,259     (116,130     (116,304     (141,563     (141,733     (150,316     (143,530     (20,177
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

    (248,803     (292,259     (262,640     (357,508     (350,440     (348,062     (343,238     (48,252
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

    (171,863     (202,028     (171,044     (252,129     (262,860     (265,460     (234,644     (32,985

Interest income

    787       681       958       1,031       1,832       2,685       2,001       281  

Interest expenses

    (510     (565     (367     (94     119       (29     12       2  

Other income (expense), net

    118       433       20       (372     298       127       (189     (27

Foreign exchange gain (loss), net

    57       (560     380       (731     (777     624       1,337       188  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income tax

    (171,411     (202,039     (170,053     (252,295     (261,388     (262,053     (231,483     (32,541

Income tax (expenses) benefits

    —         (1,626     (424     1,151       —         (84     —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

    (171,411     (203,665     (170,477     (251,144     (261,388     (262,137     (231,483     (32,541
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to Burning Rock Biotech Limited’s shareholders

    (171,411     (203,665     (170,477     (251,144     (261,388     (262,137     (231,483     (32,541

Net loss attributable to ordinary shareholders

    (171,411     (203,665     (170,477     (251,144     (261,388     (262,137     (231,483     (32,541

Loss per share for class A and class B ordinary shares:

               

Class A ordinary shares—basic and diluted

    (1.65     (1.96     (1.64     (2.40     (2.50     (2.50     (2.23     (0.31

Class B ordinary shares—basic and diluted

    (1.65     (1.96     (1.64     (2.40     (2.50     (2.50     (2.23     (0.31

Weighted average shares outstanding used in loss per share computation:

               

Class A ordinary shares—basic and diluted

    86,721,263       86,764,260       86,908,975       87,128,297       87,179,752       87,532,539       86,585,322       86,585,322  

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       17,324,848       17,324,848  

Other comprehensive income (loss), net of tax of nil:

               

Foreign currency translation adjustments

    14,080       (34,980     6,146       (24,726     (3,065     29,715       20,646       2,902  

Total comprehensive loss

    (157,331     (238,645     (164,331     (275,870     (264,453     (232,422     (210,837     (29,639

Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders

    (157,331     (238,645     (164,331     (275,870     (264,453     (232,422     (210,837     (29,639

 

7


Burning Rock Biotech Limited

Unaudited Condensed Statements of Comprehensive Loss

(in thousands, except for number of shares and per share data)

 

     For the nine months ended  
     September 30,
2021
    September 30,
2022
    September 30,
2022
 
     RMB     RMB     US$  

Revenues

     360,517       421,001       59,183  

Cost of revenues

     (101,750     (142,225     (19,993
  

 

 

   

 

 

   

 

 

 

Gross profit

     258,767       278,776       39,190  

Operating expenses:

      

Research and development expenses

     (255,134     (321,041     (45,131

Selling and marketing expenses

     (199,875     (285,120     (40,082

General and administrative expenses

     (348,693     (435,579     (61,233
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     (803,702     (1,041,740     (146,446
  

 

 

   

 

 

   

 

 

 

Loss from operations

     (544,935     (762,964     (107,256

Interest income

     2,426       6,518       916  

Interest expenses

     (1,442     102       14  

Other income, net

     571       236       33  

Foreign exchange loss, net

     (123     1,184       166  
  

 

 

   

 

 

   

 

 

 

Loss before income tax

     (543,503     (754,924     (106,127

Income tax expenses

     (2,050     (84     (12
  

 

 

   

 

 

   

 

 

 

Net loss

     (545,553     (755,008     (106,139
  

 

 

   

 

 

   

 

 

 

Net loss attributable to Burning Rock Biotech Limited’s shareholders

     (545,553     (755,008     (106,139

Net loss attributable to ordinary shareholders

     (545,553     (755,008     (106,139

Loss per share for class A and class B ordinary shares:

      

Class A ordinary shares—basic and diluted

     (5.24     (7.23     (1.02

Class B ordinary shares—basic and diluted

     (5.24     (7.23     (1.02

Weighted average shares outstanding used in loss per share computation:

      

Class A ordinary shares—basic and diluted

     86,798,854       87,097,027       87,097,027  

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

     (14,754     47,296       6,649  

Total comprehensive loss

     (560,307     (707,712     (99,490

Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders

     (560,307     (707,712     (99,490

 

8


Burning Rock Biotech Limited

Unaudited Condensed Consolidated Balance Sheets

(In thousands)

 

     As of  
     December 31,
2021
     September 30,
2022
     September 30,
2022
 
     RMB      RMB      US$  

ASSETS

        

Current assets:

        

Cash and cash equivalents

     1,431,317        1,009,790        141,954  

Restricted cash

     7,795        4,216        593  

Short-term investments

     63,757        —          —    

Accounts receivable, net

     92,197        102,385        14,393  

Contract assets, net

     42,391        46,591        6,550  

Inventories, net

     123,210        150,428        21,147  

Prepayments and other current assets, net

     60,279        41,220        5,794  
  

 

 

    

 

 

    

 

 

 

Total current assets

     1,820,946        1,354,630        190,431  
  

 

 

    

 

 

    

 

 

 

Non-current assets:

        

Equity method investment

     910        644        91  

Convertible note receivable

     —          5,000        703  

Property and equipment, net

     325,438        288,499        40,556  

Operating right-of-use assets

     81,007        58,379        8,207  

Intangible assets, net

     5,150        2,774        390  

Other non-current assets

     45,136        21,369        3,004  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     457,641        376,665        52,951  
  

 

 

    

 

 

    

 

 

 

TOTAL ASSETS

     2,278,587        1,731,295        243,382  
  

 

 

    

 

 

    

 

 

 

 

9


Burning Rock Biotech Limited

Unaudited Condensed Consolidated Balance Sheets (Continued)

(in thousands)

 

     As of  
     December 31,
2021
    September 30,
2022
    September 30,
2022
 
     RMB     RMB     US$  

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current liabilities:

      

Accounts payable

     63,080       71,045       9,988  

Deferred revenue

     142,871       168,260       23,654  

Accrued liabilities and other current liabilities

     127,892       82,512       11,600  

Customer deposits

     972       403       57  

Short-term borrowing

     2,370       —         —    

Current portion of operating lease liabilities

     34,999       38,632       5,431  

Other current liabilities

     —         2,557       359  

Total current liabilities

     372,184       363,409       51,089  
  

 

 

   

 

 

   

 

 

 

Non-current liabilities:

      

Non-current portion of operating lease liabilities

     49,316       22,865       3,214  

Other non-current liabilities

     11,776       46,079       6,478  

Total non-current liabilities

     61,092       68,944       9,692  
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES

     433,276       432,353       60,781  
  

 

 

   

 

 

   

 

 

 

Shareholders’ equity:

      

Class A ordinary shares

     116       117       16  

Class B ordinary shares

     21       21       3  

Additional paid-in capital

     4,280,956       4,499,491       632,528  

Treasury stock

     —         (57,193     (8,040

Accumulated deficits

     (2,228,713     (2,983,721     (419,445

Accumulated other comprehensive loss

     (207,069     (159,773     (22,461
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     1,845,311       1,298,942       182,601  
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

     2,278,587       1,731,295       243,382  
  

 

 

   

 

 

   

 

 

 

 

10


Burning Rock Biotech Limited

Unaudited Condensed Statements of Cash Flows

(in thousands)

 

     For the three months ended  
     September 30,
2021
    September 30,
2022
    September 30,
2022
 
     RMB     RMB     US$  

Net cash used in operating activities

     (133,394     (135,467     (19,042

Net cash used in investing activities

     (72,085     (20,148     (2,832

Net cash used in financing activities

     (32,995     (2,671     (375

Effect of exchange rate on cash, cash equivalents and restricted cash

     4,919       19,242       2,703  

Net decrease in cash, cash equivalents and restricted cash

     (233,555     (139,044     (19,546

Cash, cash equivalents and restricted cash at the beginning of period

     1,883,265       1,153,050       162,093  

Cash, cash equivalents and restricted cash at the end of period

     1,649,710       1,014,006       142,547  

 

     For the nine months ended  
     September 30,
2021
    September 30,
2022
    September 30,
2022
 
     RMB     RMB     US$  

Net cash used in operating activities

     (365,537     (389,101     (54,700

Net cash generated from (used in) investing activities

     148,667       (2,430     (339

Net cash used in financing activities

     (46,118     (76,164     (10,707

Effect of exchange rate on cash, cash equivalents and restricted cash

     (12,508     42,589       5,986  

Net decrease in cash, cash equivalents and restricted cash

     (275,496     (425,106     (59,760

Cash, cash equivalents and restricted cash at the beginning of period

     1,925,206       1,439,112       202,307  

Cash, cash equivalents and restricted cash at the end of period

     1,649,710       1,014,006       142,547  

 

11


Burning Rock Biotech Limited

Reconciliations of GAAP and Non-GAAP Results

 

     For the three months ended  
     March 31,
2021
    June 30,
2021
    September 30,
2021
    December 31,
2021
    March 31,
2022
    June 30,
2022
    September 30,
2022
 
                                            
           (RMB in thousands)  

Gross profit:

    

Central laboratory channel

     55,212       58,681       58,387       65,985       50,574       57,575       69,991  

In-hospital channel

     20,070       29,426       31,111       34,194       33,396       20,012       31,593  

Pharma research and development channel

     1,658       2,124       2,098       5,200       3,610       5,015       7,010  

Total gross profit

     76,940       90,231       91,596       105,379       87,580       82,602       108,594  

Add: depreciation and amortization:

              

Central laboratory channel

     117       284       1,254       995       2,553       2,545       3,138  

In-hospital channel

     79       113       109       130       93       1,428       2,479  

Pharma research and development channel

     10       40       19       856       2,493       4,327       2,805  

Total depreciation and amortization included in cost of revenues

     206       437       1,382       1,981       5,139       8,300       8,422  

Non-GAAP gross profit:

              

Central laboratory channel

     55,329       58,965       59,641       66,980       53,127       60,120       73,129  

In-hospital channel

     20,149       29,539       31,220       34,324       33,489       21,440       34,072  

Pharma research and development channel

     1,668       2,164       2,117       6,056       6,103       9,342       9,815  

Total non-GAAP gross profit

     77,146       90,668       92,978       107,360       92,719       90,902       117,016  

Non-GAAP gross margin:

              

Central laboratory channel

     74.2     73.7     75.7     77.9     71.6     76.5     81.3

In-hospital channel

     69.5     72.9     71.4     66.1     68.4     62.7     68.6

Pharma research and development channel

     54.4     31.9     51.8     64.0     49.4     51.7     65.4

Total non-GAAP gross margin

     72.4     71.2     73.4     72.9     68.4     69.5     75.7

 

12