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 March 2024

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 ☐

 

 

 


INCORPORATION BY REFERENCE

Exhibit 99.1 (excluding 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).

 

2


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: March 28, 2024

 

4

EX-99.1

Exhibit 99.1

Burning Rock Reports Fourth Quarter and Full Year 2023 Financial Results

GUANGZHOU, China, March 29, 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 and the year ended December 31, 2023.

2023 Business Overview and Recent Updates

 

   

Corporate Updates

 

   

Completed profitability-driven organizational optimization, execution towards profitability well underway

 

   

Early Detection

 

   

Following the Breakthrough Device Designation granted by the US Food and Drug Administration (FDA) for our OverC Multi-Cancer Detection Blood Test (MCDBT) in January 2023, our OverC MCDBT also received the Breakthrough Device Designation by China’s National Medical Products Administration (NMPA) in October 2023, making it the only test globally that has received Breakthrough Device Designation from both the FDA and the NMPA.

 

   

Therapy Selection and Minimal Residual Disease (MRD)

 

   

Precision oncology diagnostics product supports advancement in late-stage breast cancer treatment, with results published in the New England Journal of Medicine in June 2023. The study, CAPItello-291, sponsored by our pharma client AstraZeneca, is a phase 3 trial that assessed the efficacy and safety of Capivasertib–fulvestrant therapy in advanced breast cancer patients with hormone receptor positive (HR+), human epidermal growth factor receptor 2 negative (HER2-) cancer whose disease has progressed during or after aromatase inhibitor therapy. The study demonstrates that Capivasertib–fulvestrant combination therapy results in significantly longer progression-free survival than treatment with fulvestrant alone.

 

   

Pharma Services

 

   

New companion diagnostics (CDx) development for breast and prostatic cancer announced with AstraZeneca in China.

 

   

Entered into a Master Service Agreement in Oncology Companion Diagnostics (CDx) with Boehringer Ingelheim, focusing on advancing the clinical trials related to Boehringer Ingelheim’s MDM2-p53 antagonist, brigimadlin (BI 907828), and the development of CDx products in China.

 

   

Total value of new contracts entered into during 2023 amounted to RMB310 million, representing a 24% increase from 2022.

Fourth Quarter 2023 Financial Results

Revenues were RMB121.1 million (US$17.1 million) for the three months ended December 31, 2023, representing a 14.9% decrease from RMB142.2 million for the same period in 2022.

 

   

Revenue generated from central laboratory business was RMB51.3 million (US$7.2 million) for the three months ended December 31, 2023, representing a 28.7% decrease from RMB72.0 million for the same period in 2022, primarily attributable to a decrease in the number of tests, as we continued to focus on our in-hospital business.

 

   

Revenue generated from in-hospital business was RMB28.8 million (US$4.1 million) for the three months ended December 31, 2023, representing a 32.3% decrease from RMB42.5 million for the same period in 2022, primarily attributable to one-off adjustment with two hospitals. Exclude such two, revenue generated from in-hospital business for the three months ended December 31, 2023 would have remained relatively stable (decreasing by 1%) year-over-year.

 

   

Revenue generated from pharma research and development services was RMB41.0 million (US$5.8 million) for the three months ended December 31, 2023, representing a 47.8% increase from RMB27.7 million for the same period in 2022, primarily attributable to increased development and testing services performed for our pharma customers.

 

1


Cost of revenues remained relatively stable at RMB43.0 million (US$6.1 million) for the three months ended December 31, 2023, compared to RMB41.0 million for the same period in 2022.

Gross profit was RMB78.1 million (US$11.0 million) for the three months ended December 31, 2023, representing a 22.9% decrease from RMB101.3 million for the same period in 2022. Gross margin was 64.5% for the three months ended December 31, 2023, compared to 71.2% for the same period in 2022. By channel, gross margin of central laboratory business was 81.7% for the three months ended December 31, 2023, compared to 75.7% during the same period in 2022, primarily due to a decrease in inventory write down; gross margin of in-hospital business was 44.8% for the three months ended December 31, 2023, compared to 63.5% during the same period in 2022, primarily due to a decrease in revenue generated from two hospitals due to one-off adjustment. Exclude such two, gross margin of in-hospital business was 65.0% for the three months ended December 31, 2023, compared to 66.6% during the same period in 2022; gross margin of pharma research and development services was 56.9% for the three months ended December 31, 2023, compared to 71.2% during the same period of 2022, primarily due to a decrease in test volume of higher margin projects.

Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB87.1 million (US$12.3 million) for the three months ended December 31, 2023, representing a 21.1% decrease from RMB110.4 million for the same period in 2022. Non-GAAP gross margin was 71.9% for the three months ended December 31, 2023, compared to 77.6% for the same period in 2022.

Operating expenses were RMB244.4 million (US$34.4 million) for the three months ended December 31, 2023, representing a 23.3% decrease from RMB318.7 million for the same period in 2022. The decrease was primarily driven by budget control measures, including headcount reduction, to improve our operating efficiency.

 

   

Research and development expenses were RMB73.1 million (US$10.3 million) for the three months ended December 31, 2023, representing an 27.5% decrease from RMB100.8 million for the same period in 2022, primarily due to (i) a decrease in the expenditure for detection research, and (ii) a decrease in staff cost resulted from the reorganization of our research and development department to improve operating efficiency.

 

   

Selling and marketing expenses were RMB49.8 million (US$7.0 million) for the three months ended December 31, 2023, representing a 41.5% decrease from RMB85.2 million for the same period in 2022, primarily due to (i) a decrease in staff cost resulted from the reorganization of our sales department to improve operating efficiency, and (ii) a decrease in marketing and conference fee.

 

   

General and administrative expenses were RMB121.5 million (US$17.1 million) for the three months ended December 31, 2023, representing a 8.4% decrease from RMB132.7 million for the same period in 2022, primarily due to a decrease in professional service fee.

Net loss was RMB162.2 million (US$22.8 million) for the three months ended December 31, 2023, compared to RMB216.2 million for the same period in 2022.

Cash, cash equivalents, restricted cash were RMB615.2 million (US$86.7 million) as of December 31, 2023.

Full Year 2023 Financial Results

Revenues were RMB537.4 million (US$75.7 million) for 2023, representing a 4.6% decrease from RMB563.2 million for 2022.

 

   

Revenue generated from central laboratory business was RMB232.8 million (US$32.8 million) for 2023, representing a 26.0% decrease from RMB314.8 million for 2022, primarily attributable to a decrease in the number of tests, as we continued to focus on our in-hospital business.

 

   

Revenue generated from in-hospital business was RMB188.7 million (US$26.6 million) for 2023, representing a 7.6% increase from RMB175.3 million for 2022, primarily due to demand from ten new contracted partner hospitals added to the Company’s in-hospital channel in 2023.

 

   

Revenue generated from pharma research and development services was RMB115.9 million (US$16.3 million) for 2023, representing a 58.4% increase from RMB73.2 million for 2022, primarily attributable to increased development and testing services performed for our pharma customers.

 

2


Cost of revenues was RMB174.2 million (US$24.5 million) for 2023, representing a 4.9% decrease from RMB183.2 million for 2022, primarily due to a decrease in cost of revenues for our central lab business, as we continued to focus on our in-hospital business.

Gross profit was RMB363.2 million (US$51.2 million) for 2023, representing a 4.4% decrease from RMB380.0 million for 2022. Gross margin increased to 67.6% for 2023 from 67.5% for 2022.

Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB399.4 million (US$56.3 million) for 2023, representing a 2.8% decrease from RMB411.0 million for 2022. Non-GAAP gross margin was 74.3% for 2023, compared to 73.0% for 2022.

Operating expenses were RMB1,032.5 million (US$145.4 million) for 2023, representing a 24.1% decrease from RMB1,360.4 million for 2022.

 

   

Research and development expenses were RMB347.0 million (US$48.9 million) for 2023, representing a 17.7% decrease from RMB421.9 million for 2022, primarily due to (i) a decrease in the expenditure for detection research, (ii) a decrease in royalty and license fee, and (iii) a decrease in staff cost resulted from the reorganization of our research and development department to improve operating efficiency.

 

   

Selling and marketing expenses were RMB247.7 million (US$34.9 million) for 2023, representing a 33.1% decrease from RMB370.3 million for 2022, primarily due to (i) a decrease in staff cost resulted from the reorganization of our sales department to improve operating efficiency, (ii) a decrease in marketing and conference fee; and (iii) a decrease in entertainment fee.

 

   

General and administrative expenses were RMB437.8 million (US$61.7 million) for 2023, representing a 23.0% decrease from RMB568.3 million for 2022, primarily due to (i) a decrease in professional service fee; (ii) a decrease in allowance for doubtful accounts resulting from accelerated settlement with customers with long aging accounts receivable; and (iii) a decrease in staff cost resulted from the reorganization of our general and administrative department to improve operating efficiency.

Net loss was RMB653.7 million (US$92.1 million) for 2023, compared to RMB971.2 million for 2022.

2024 Financial Guidance

We currently expect to achieve breakeven (measured by non-GAAP gross profit minus non-GAAP SG&A) in the first half of 2024.

Non-GAAP gross profit refers to gross profit excluding depreciation and amortization. Non-GAAP SG&A refers to selling and marketing expenses and general and administrative expenses, both excluding their respective share-based compensation and depreciation and amortization.

Conference Call Information

Burning Rock will host a conference call to discuss the fourth quarter and full year 2023 financial results at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Hong Kong time) on March 29, 2024.

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/BIa8b469b65e8e428e942decdf0c4c6687.

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/hrphgr99.

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

 

3


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

 

4


Selected Operating Data

 

    As of  
    March 31,
2022
    June 30,
2022
    September 30,
2022
    December 31,
2022
    March 31,
2023
    June 30,
2023
    September 30,
2023
    December 31,
2023
 

In-hospital Channel:

               

Pipeline partner hospitals(1)

    24       25       22       28       29       30       29       28  

Contracted partner hospitals(2)

    41       43       47       49       49       50       55       59  

Total number of partner hospitals

    65       68       69       77       78       80       84       87  

 

(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,
2022
     June 30,
2022
     September 30,
2022
     December 31,
2022
     March 31,
2023
     June 30,
2023
     September 30,
2023
     December 31,
2023
 
     (RMB in thousands)  

Central laboratory channel

     74,211        78,597        89,992        71,970        61,804        66,239        53,481        51,288  

In-hospital channel

     48,957        34,177        49,636        42,526        51,561        53,835        54,496        28,809  

Pharma research and development channel

     12,356        18,072        15,003        27,741        29,151        26,194        19,589        40,988  

Total revenues

     135,524        130,846        154,631        142,237        142,516        146,268        127,566        121,085  

 

     For the three months ended  
Gross profit    March 31,
2022
     June 30,
2022
     September 30,
2022
     December 31,
2022
     March 31,
2023
     June 30,
2023
     September 30,
2023
     December 31,
2023
 
     (RMB in thousands)  

Central laboratory channel

     50,574        57,575        69,991        54,507        48,090        51,876        41,487        41,886  

In-hospital channel

     33,396        20,012        31,593        26,999        34,409        33,353        35,459        12,910  

Pharma research and development channel

     3,610        5,015        7,010        19,757        16,273        15,193        8,974        23,317  

Total gross profit

     87,580        82,602        108,594        101,263        98,772        100,422        85,920        78,113  

 

     For the three months ended  
Share-based compensation expenses    March 31,
2022
     June 30,
2022
     September 30,
2022
     December 31,
2022
     March 31,
2023
     June 30,
2023
     September 30,
2023
     December 31,
2023
 
     (RMB in thousands)  

Cost of revenues

     365        441        481        496        353        627        680        654  

Research and development expenses

     12,299        11,923        13,978        14,673        13,612        15,301        12,161        12,401  

Selling and marketing expenses

     1,774        2,158        2,346        2,247        1,606        3,389        2,848        1,816  

General and administrative expenses

     65,715        62,615        61,041        74,232        62,595        18,502        57,704        56,472  

Total share-based compensation expenses

     80,153        77,137        77,846        91,648        78,166        37,819        73,393        71,343  

 

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,
2022
    June 30,
2022
    September 30,
2022
    December 31,
2022
    March 31,
2023
    June 30,
2023
    September 30,
2023
    December 31,
2023
    December 31,
2023
 
    RMB     RMB     RMB     RMB     RMB     RMB     RMB     RMB     US$  

Revenues

    135,524       130,846       154,631       142,237       142,516       146,268       127,566       121,085       17,054  

Cost of revenues

    (47,944     (48,244     (46,037     (40,974     (43,744     (45,846     (41,646     (42,972     (6,052
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

    87,580       82,602       108,594       101,263       98,772       100,422       85,920       78,113       11,002  

Operating expenses:

                 

Research and development expenses

    (119,496     (92,112     (109,433     (100,827     (94,417     (95,779     (83,701     (73,119     (10,299

Selling and marketing expenses

    (89,211     (105,634     (90,275     (85,174     (64,774     (70,842     (62,310     (49,785     (7,012

General and administrative expenses

    (141,733     (150,316     (143,530     (132,705     (128,039     (69,525     (118,724     (121,533     (17,118
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

    (350,440     (348,062     (343,238     (318,706     (287,230     (236,146     (264,735     (244,437     (34,429
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

    (262,860     (265,460     (234,644     (217,443     (188,458     (135,724     (178,815     (166,324     (23,427

Interest income

    1,932       2,656       2,013       2,838       3,144       5,255       4,018       5,539       780  

Other income (expense), net

    298       127       (189     (84     599       (118     (157     160       23  

Foreign exchange (loss) gain, net

    (777     624       1,337       365       (116     (210     423       (517     (73
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income tax

    (261,388     (262,053     (231,483     (214,324     (184,831     (130,797     (174,531     (161,142     (22,697

Income tax expenses

    —        (84     —        (1,901     (422     (445     (450     (1,071     (151
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

    (261,388     (262,137     (231,483     (216,225     (185,253     (131,242     (174,981     (162,213     (22,848
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss attributable to Burning Rock Biotech Limited’s shareholders

    (261,388     (262,137     (231,483     (216,225     (185,253     (131,242     (174,981     (162,213     (22,848

Net loss attributable to ordinary shareholders

    (261,388     (262,137     (231,483     (216,225     (185,253     (131,242     (174,981     (162,213     (22,848

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

                 

Class A ordinary shares - basic and diluted

    (2.50     (2.50     (2.23     (2.11     (1.81     (1.28     (1.71     (1.58     (0.22

Class B ordinary shares - basic and diluted

    (2.50     (2.50     (2.23     (2.11     (1.81     (1.28     (1.71     (1.58     (0.22

Weighted average shares outstanding used in loss per share computation:

                 

Class A ordinary shares -basic and diluted

    87,179,752       87,532,539       86,585,322       85,051,882       85,065,585       85,151,052       85,000,869       85,071,360       85,071,360  

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       17,324,848  

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

                 

Foreign currency translation adjustments

    (3,065     29,715       20,646       (5,950     (5,659     14,829       (1,955     (3,026     (426

Total comprehensive loss

    (264,453     (232,422     (210,837     (222,175     (190,912     (116,413     (176,936     (165,239     (23,274

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

    (264,453     (232,422     (210,837     (222,175     (190,912     (116,413     (176,936     (165,239     (23,274

 

7


Burning Rock Biotech Limited

Unaudited Condensed Statements of Comprehensive Loss

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

 

     For the year ended  
     December 31,
2022
    December 31,
2023
    December 31,
2023
 
     RMB     RMB     US$  

Revenues

     563,238       537,435       75,696  

Cost of revenues

     (183,199     (174,208     (24,536
  

 

 

   

 

 

   

 

 

 

Gross profit

     380,039       363,227       51,160  

Operating expenses:

      

Research and development expenses

     (421,868     (347,016     (48,876

Selling and marketing expenses

     (370,294     (247,711     (34,889

General and administrative expenses

     (568,284     (437,821     (61,666
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     (1,360,446     (1,032,548     (145,431
  

 

 

   

 

 

   

 

 

 

Loss from operations

     (980,407     (669,321     (94,271

Interest income

     9,356       17,956       2,529  

Interest expenses

     102       —        —   

Other income, net

     152       484       68  

Foreign exchange gain (loss), net

     1,549       (420     (59
  

 

 

   

 

 

   

 

 

 

Loss before income tax

     (969,248     (651,301     (91,733

Income tax expenses

     (1,985     (2,388     (336
  

 

 

   

 

 

   

 

 

 

Net loss

     (971,233     (653,689     (92,069
  

 

 

   

 

 

   

 

 

 

Net loss attributable to Burning Rock Biotech Limited’s shareholders

     (971,233     (653,689     (92,069

Net loss attributable to ordinary shareholders

     (971,233     (653,689     (92,069

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

      

Class A ordinary shares - basic and diluted

     (9.35     (6.38     (0.90

Class B ordinary shares - basic and diluted

     (9.35     (6.38     (0.90

Weighted average shares outstanding used in loss per share computation:

      

Class A ordinary shares - basic and diluted

     86,584,100       85,071,691       85,071,691  

Class B ordinary shares - basic and diluted

     17,324,848       17,324,848       17,324,848  

Other comprehensive income, net of tax of nil:

      

Foreign currency translation adjustments

     41,346       4,189       590  

Total comprehensive loss

     (929,887     (649,500     (91,479

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

     (929,887     (649,500     (91,479

 

8


Burning Rock Biotech Limited

Unaudited Condensed Consolidated Balance Sheets

(In thousands)

 

     As of  
     December 31,
2022
     December 31,
2023
     December 31,
2023
 
     RMB      RMB      US$  

ASSETS

        

Current assets:

        

Cash and cash equivalents

     905,451        615,096        86,634  

Restricted cash

     19,817        120        17  

Accounts receivable, net

     109,954        126,858        17,868  

Contract assets, net

     41,757        22,748        3,204  

Inventories, net

     130,321        69,020        9,721  

Prepayments and other current assets

     51,462        50,254        7,078  
  

 

 

    

 

 

    

 

 

 

Total current assets

     1,258,762        884,096        124,522  
  

 

 

    

 

 

    

 

 

 

Non-current assets:

        

Equity method investment

     690        337        47  

Convertible note receivable

     5,105        5,320        749  

Property and equipment, net

     251,829        131,912        18,579  

Operating right-of-use assets

     48,205        12,284        1,730  

Intangible assets, net

     1,986        964        136  

Other non-current assets

     20,890        5,088        717  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     328,705        155,905        21,958  
  

 

 

    

 

 

    

 

 

 

TOTAL ASSETS

     1,587,467        1,040,001        146,480  
  

 

 

    

 

 

    

 

 

 

 

9


Burning Rock Biotech Limited

Unaudited Condensed Consolidated Balance Sheets (Continued)

(in thousands)

 

     As of  
     December 31,
2022
    December 31,
2023
    December 31,
2023
 
     RMB     RMB     US$  

LIABILITIES AND SHAREHOLDERS’ EQUITY

      

Current liabilities:

      

Accounts payable

     50,947       18,061       2,544  

Deferred revenue

     147,633       130,537       18,386  

Accrued liabilities and other current liabilities

     173,832       104,935       14,780  

Customer deposits

     1,803       1,197       169  

Current portion of operating lease liabilities

     37,236       8,634       1,216  
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     411,451       263,364       37,095  
  

 

 

   

 

 

   

 

 

 

Non-current liabilities:

      

Non-current portion of operating lease liabilities

     13,551       3,690       520  

Other non-current liabilities

     4,124       4,537       636  
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     17,675       8,227       1,156  
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES

     429,126       271,591       38,251  
  

 

 

   

 

 

   

 

 

 

Shareholders’ equity:

      

Class A ordinary shares

     117       116       16  

Class B ordinary shares

     21       21       3  

Additional paid-in capital

     4,582,790       4,849,337       683,015  

Treasury stock

     (58,919     (65,896     (9,281

Accumulated deficits

     (3,199,946     (3,853,635     (542,773

Accumulated other comprehensive loss

     (165,722     (161,533     (22,751
  

 

 

   

 

 

   

 

 

 

Total shareholders’ equity

     1,158,341       768,410       108,229  
  

 

 

   

 

 

   

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

     1,587,467       1,040,001       146,480  
  

 

 

   

 

 

   

 

 

 

 

10


Burning Rock Biotech Limited

Unaudited Condensed Statements of Cash Flows

(in thousands)

 

     For the three months ended  
     December 31,
2022
    December 31,
2023
    December 31,
2023
 
     RMB     RMB     US$  

Net cash used in operating activities

     (67,707     (16,019     (2,256

Net cash used in investing activities

     (5,033     (328     (46

Net cash used in financing activities

     (10,074     (1,909     (269

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

     (5,924     (3,277     (462

Net decrease in cash, cash equivalents and restricted cash

     (88,738     (21,533     (3,033

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

     1,014,006       636,749       89,684  

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

     925,268       615,216       86,651  

 

     For the year ended  
     December 31,
2022
    December 31,
2023
    December 31,
2023
 
     RMB     RMB     US$  

Net cash used in operating activities

     (456,808     (255,783     (36,026

Net cash used in investing activities

     (7,463     (9,300     (1,310

Net cash used in financing activities

     (86,238     (48,832     (6,878

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

     36,665       3,863       544  

Net decrease in cash, cash equivalents and restricted cash

     (513,844     (310,052     (43,670

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

     1,439,112       925,268       130,321  

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

     925,268       615,216       86,651  

 

11


Burning Rock Biotech Limited

Reconciliations of GAAP and Non-GAAP Results

 

 

     For the three months ended  
     March 31,
2022
    June 30,
2022
    September 30,
2022
    December 31,
2022
    March 31,
2023
    June 30,
2023
    September 30,
2023
    December 31,
2023
 
           (RMB in thousands)        

Gross profit:

      

Central laboratory channel

     50,574       57,575       69,991       54,507       48,090       51,876       41,487       41,886  

In-hospital channel

     33,396       20,012       31,593       26,999       34,409       33,353       35,459       12,910  

Pharma research and development channel

     3,610       5,015       7,010       19,757       16,273       15,193       8,974       23,317  

Total gross profit

     87,580       82,602       108,594       101,263       98,772       100,422       85,920       78,113  

Add: depreciation and amortization:

                

Central laboratory channel

     2,553       2,545       3,138       3,609       2,567       2,645       2,550       2,414  

In-hospital channel

     93       1,428       2,479       2,449       2,582       2,637       2,751       2,728  

Pharma research and development channel

     2,493       4,327       2,805       3,065       3,974       3,665       3,863       3,808  

Total depreciation and amortization included in cost of revenues

     5,139       8,300       8,422       9,123       9,123       8,947       9,164       8,950  

Non-GAAP gross profit:

                

Central laboratory channel

     53,127       60,120       73,129       58,116       50,657       54,521       44,037       44,300  

In-hospital channel

     33,489       21,440       34,072       29,448       36,991       35,990       38,210       15,638  

Pharma research and development channel

     6,103       9,342       9,815       22,822       20,247       18,858       12,837       27,125  

Total non-GAAP gross profit

     92,719       90,902       117,016       110,386       107,895       109,369       95,084       87,063  

Non-GAAP gross margin:

                

Central laboratory channel

     71.6     76.5     81.3     80.8     82.0     82.3     82.3     86.4

In-hospital channel

     68.4     62.7     68.6     69.2     71.7     66.9     70.1     54.3

Pharma research and development channel

     49.4     51.7     65.4     82.3     69.5     72.0     65.5     66.2

Total non-GAAP gross margin

     68.4     69.5     75.7     77.6     75.7     74.8     74.5     71.9

 

12


Burning Rock Biotech Limited

Reconciliations of GAAP and Non-GAAP Results

 

     For the year ended  
     December 31,
2022
    December 31,
2023
 
     (RMB in thousands)  

Gross profit:

    

Central laboratory channel

     232,647       183,339  

In-hospital channel

     112,000       116,131  

Pharma research and development channel

     35,392       63,757  

Total gross profit

     380,039       363,227  

Add: depreciation and amortization:

    

Central laboratory channel

     11,845       10,176  

In-hospital channel

     6,449       10,699  

Pharma research and development channel

     12,690       15,310  

Total depreciation and amortization included in cost of revenues

     30,984       36,185  

Non-GAAP gross profit:

    

Central laboratory channel

     244,492       193,515  

In-hospital channel

     118,449       126,830  

Pharma research and development channel

     48,082       79,067  

Total non-GAAP gross profit

     411,023       399,412  

Non-GAAP gross margin:

    

Central laboratory channel

     77.7     83.1

In-hospital channel

     67.6     67.2

Pharma research and development channel

     65.7     68.2

Total non-GAAP gross margin

     73.0     74.3

 

13