Burning Rock Biotech Ltd 6-K, filed Nov 7, 2022

Burning Rock Biotech Ltd (BNR)

6-K 2022-11-07 For: 2022-06-30

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Added on April 06, 2026

About this 6-K

Burning Rock Biotech Ltd filed this 6-K on November 7, 2022.

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Number		Description of Document

99.1		Management’s Discussion and Analysis of Financial Condition and Results of Operations and Recent Developments

99.2		Unaudited Condensed Consolidated Financial Statements


Burning Rock Biotech Limited

By:		/s/ Leo Li
Name:		Leo Li
Title:		Chief Financial Officer


	Six months ended June 30,
	2021			2022
	RMB’000			RMB’000			US$’000
Revenues:
Revenues from services		164,414			185,581			27,707
Revenues from sales of products		69,488			80,789			12,061

Total revenues		233,902			266,370			39,768

Cost of revenues⁽¹⁾
Cost of services		(46,731	)		(66,462	)		(9,923	)
Cost of goods		(20,000	)		(29,726	)		(4,438	)

Total cost of revenues		(66,731	)		(96,188	)		(14,361	)

Gross profit		167,171			170,182			25,407
Operating expenses:
Research and development expenses⁽¹⁾		(185,485	)		(211,608	)		(31,592	)
Selling and marketing expenses⁽¹⁾		(123,188	)		(194,845	)		(29,090	)
General and administrative expenses⁽¹⁾		(232,389	)		(292,049	)		(43,602	)

Total operating expenses		(541,062	)		(698,502	)		(104,284	)

Loss from operations		(373,891	)		(528,320	)		(78,877	)
Interest income		1,468			4,517			674
Interest expenses		(1,075	)		90			13
Other income, net		551			425			63
Foreign exchange loss, net		(503	)		(153	)		(23	)

Loss before income tax		(373,450	)		(523,441	)		(78,150	)
Income tax expenses		(1,626	)		(84	)		(13	)

Net loss		(375,076	)		(523,525	)		(78,163	)


	Six months ended June 30,
	2021		2022
	RMB’000		RMB’000		US$’000
Cost of revenues		745		806		120
Research and development expenses		43,230		24,222		3,616
Selling and marketing expenses		5,442		3,932		587
General and administrative expenses		118,750		128,330		19,159

Total		168,167		157,290		23,482


	As of December 31, 2021		As of June 30, 2022
	RMB’000		RMB’000		US$’000
Total current assets		1,820,946		1,463,085		218,436
Total assets		2,278,587		1,861,274		277,882
Total current liabilities		372,184		359,450		53,664
Total liabilities		433,276		429,041		64,054
Net current assets		1,448,762		1,103,635		164,772
Total shareholders’ equity		1,845,311		1,432,233		213,828
Total liabilities and shareholders’ equity		2,278,587		1,861,274		277,882


	As of June 30,
	2021		2022
In-hospital Channel:
Pipeline partner hospitals⁽¹⁾		22		25
Contracted partner hospitals⁽²⁾		34		43
Total number of partner hospitals		56		68


	Six months ended June 30, 2021
	Central laboratory business				In-hospital business				Pharma research and development services				Total revenues
	RMB		% of total revenues		RMB		% of total revenues		RMB		% of total revenues		RMB		% of total revenues
	(in thousands, except for%)
Revenues from services		154,560		66.1		8		—		9,846		4.2		164,414		70.3
Revenues from sales of products		—		—		69,488		29.7		—		—		69,488		29.7

		154,560		66.1		69,496		29.7		9,846		4.2		233,902		100.0


	Six months ended June 30, 2022
	Central laboratory business						In-hospital business						Pharma research and development services						Total revenues
	RMB		US$		% of total revenues		RMB		US$		% of total revenues		RMB		US$		% of total revenues		RMB		US$		% of total revenues
	(in thousands, except for %)
Revenues from services		152,808		22,814		57.4		2,345		350		0.9		30,428		4,543		11.4		185,581		27,707		69.7
Revenues from sales of products		—		—		—		80,789		12,061		30.3		—		—		—		80,789		12,061		30.3

		152,808		22,814		57.4		83,134		12,411		31.2		30,428		4,543		11.4		266,370		39,768		100.0


	PAGES

Condensed Consolidated Balance Sheets as of December 31, 2021 and June 30, 2022		F-2

Condensed Consolidated Statements of Comprehensive Loss for the six months ended June 30, 2021 and 2022		F-5

Condensed Consolidated Statements of Shareholders’ Equity for the six months ended June 30, 2021 and 2022		F-7

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2022		F-9

Notes to the Consolidated Financial Statements for the six months ended June 30, 2021 and 2022		F-11


		As of
	Notes	December 31, 2021		June 30, 2022
		RMB		RMB		US$
				(unaudited)
ASSETS

Current assets:
Cash and cash equivalents			1,431,317		1,148,597		171,481
Restricted cash			7,795		4,453		665
Short-term investments			63,757		—		—
Accounts receivable (net of allowances of RMB39,166 and RMB44,823 (US$6,692) as of December 31, 2021 and June 30, 2022, respectively . )	5		92,197		100,960		15,073
Contract assets	6		42,391		44,593		6,657
Inventories , net	7		123,210		129,637		19,355
Prepayments and other current assets	8		60,279		34,845		5,205

Total current assets			1,820,946		1,463,085		218,436

Non-current assets:
Equity method investment			910		733		109
Convertible note receivable			—		5,000		746
Property and equipment, net	9		325,438		301,249		44,975
Operating right-of-use-assets			81,007		66,655		9,951
Intangible assets, net			5,150		3,354		500
Other non-current assets			45,136		21,198		3,165

Total non-current assets			457,641		398,189		59,446

TOTAL ASSETS			2,278,587		1,861,274		277,882


			For the six months ended June 30
	Notes		2021			2022
			RMB			RMB			US$
			(unaudited)			(unaudited)
Revenues:
Revenues from services				164,414			185,581			27,707
Revenues from sales of products				69,488			80,789			12,061

Total revenues		3		233,902			266,370			39,768

Cost of revenues:
Cost of services				(46,731	)		(66,462	)		(9,923	)
Cost of goods sold				(20,000	)		(29,726	)		(4,438	)

Total cost of revenues				(66,731	)		(96,188	)		(14,361	)

Gross profit				167,171			170,182			25,407

Operating expenses:
Research and development expenses				(185,485	)		(211,608	)		(31,592	)
Selling and marketing expenses				(123,188	)		(194,845	)		(29,090	)
General and administrative expenses (including related party amounts of RMB475 and RMB94 (US$14) for the six months ended June 30, 2021 and 2022, respectively.)		14		(232,389	)		(292,049	)		(43,602	)

Total operating expenses				(541,062	)		(698,502	)		(104,284	)

Loss from operations				(373,891	)		(528,320	)		(78,877	)

Interest income				1,468			4,517			674
Interest expenses				(1,075	)		90			13
Other expense, net (net off by related party income of RMB334 and nil for the six months ended June 30, 2021 and 2022, respectively.)				551			425			63
Foreign exchange (loss) gain, net				(503	)		(153	)		(23	)

Loss before income tax				(373,450	)		(523,441	)		(78,150	)


	Ordinary shares					Treasury stock			Additional paid- in capital			Accumulated deficit			Accumulated other comprehensive (loss) income			Total shareholders’ equity
	Number of shares			Amount		Treasury stock			Additional paid- in capital			Accumulated deficit			Accumulated other comprehensive (loss) income			Total shareholders’ equity
				RMB		RMB			RMB			RMB			RMB			RMB

Balance as of January 1, 2021		104,781,929			137		—			4,006,616			(1,418,160	)		(167,589	)		2,421,004
Net loss		—			—		—			—			(375,076	)		—			(375,076	)
Other comprehensive income		—			—		—			—			—			(20,900	)		(20,900	)
Issuance of restricted shares		2,424			—		—			—			—			—			—
Refund for prepaid subscription for forfeited restricted shares		(16,233	)		—		—			(1,629	)		—			—			(1,629	)
Purchase of treasury stock		(61,026	)		—		(4,270	)		—			—			—			(4,270	)
Exercise of options (note 1 1 )		85,903			—		—			—			—			—			—
Adoption of ASC 326		—			—		—			—			(13,856	)		—			(13,856	)
Share-based compensation (note 11)		—			—		—			168,167			—			—			168,167

Balance as of June 30, 2021 (unaudited)		104,792,997			137		(4,270	)		4,173,154			(1,807,092	)		(188,489	)		2,173,440


	Ordinary shares					Treasury stock			Additional paid-in capital			Accumulated deficit						Accumulated other comprehensive (loss) income			Total shareholders’ equity
	Number of shares			Amount		Treasury stock			Additional paid-in capital			Accumulated deficit			Equity forward			Accumulated other comprehensive (loss) income			Total shareholders’ equity
				RMB		RMB			RMB			RMB			RMB			RMB			RMB

Balance as of January 1, 2022		105,108,849			137		—			4,280,956			(2,228,713	)		—			(207,069	)		1,845,311
Net loss		—			—		—			—			(523,525	)		—			—			(523,525	)
Other comprehensive income		—			—		—			—			—			—			26,650			26,650
Refund of consideration for Employee Share Incentive Program		(73,489	)		—		—			(3,385	)		—			—			—			(3,385	)
Purchase of treasury stock		—			—		(3,258	)		—			—			—			—			(3,258	)
Equity forward contract (note 10)		—			—		—			—			—			(66,850	)		—			(66,850	)
Exercise of options (note 1 1 )		405,661			—		3,258			(3,258	)		—			—			—			—
Share-based compensation (note 11)		—			—		—			157,290			—			—			—			157,290

Balance as of June 30, 2022 (unaudited)		105,441,021			137		—			4,431,603			(2,752,238	)		(66,850	)		(180,419	)		1,432,233

Balance as of June 30, 2022 (US$) (unaudited)		105,441,021			21		—			661,621			(410,898	)		(9,980	)		(26,936	)		213,828


	For the six months ended June 30,2021												For the six months ended June 30,2022
	Central laboratory business			In-hospital business			Pharma research and development services			Total			Central laboratory business			In-hospital business			Pharma research and development services			Total
	RMB			RMB			RMB			RMB			RMB			RMB			RMB			RMB			US$
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenues:
Revenues from services		154,560			8			9,846			164,414			152,808			2,345			30,428			185,581			27,707
Revenues from sales of products		—			69,488			—			69,488			—			80,789			—			80,789			12,061

Total revenues		154,560			69,496			9,846			233,902			152,808			83,134			30,428			266,370			39,768

Cost of revenues		(40,667	)		(20,000	)		(6,064	)		(66,731	)		(44,659	)		(29,726	)		(21,803	)		(96,188	)		(14,361	)

Gross profit		113,893			49,496			3,782			167,171			108,149			53,408			8,625			170,182			25,407


	As of
	December 31, 2021			June 30, 2022
	RMB			RMB			US$
				(unaudited)
Raw materials		82,455			90,957			13,580
Work in progress		7,902			10,220			1,526
Finished goods		35,481			38,095			5,687
Inventory provision		(2,628	)		(9,635	)		(1,438	)

		123,210			129,637			19,355


	For the six months ended June 30
	2021			2022
	RMB			RMB			US$
	(unaudited)			(unaudited)
Cash flows from operating activities:
Net loss		(375,076	)		(523,525	)		(78,163	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		21,652			60,154			8,981
Allowance for credit losses		3,054			16,677			2,490
Inventory write down		1,697			7,007			1,046
Loss on disposal of equipment		13			1,113			166
Share of loss from equity method investee		143			217			32
Share-based compensation		168,167			157,290			23,483
Non-cash operating lease expenses		12,756			19,739			2,947
Derecognition of right of use assets and lease liability		—			(137	)		(20	)

Changes in operating assets and liabilities:
Inventories		(55,299	)		(10,948	)		(1,634	)
Accounts receivable		(344	)		(14,420	)		(2,153	)
Contract assets		(12,282	)		(13,317	)		(1,988	)
Prepayments and other current assets		(22,461	)		25,554			3,815
Amounts due from related parties		(416	)		—			—
Other non-current assets		—			24,187			3,611
Accounts payable		9,315			3,877			579
Deferred revenue		27,115			20,222			3,019
Accrued liabilities and other current liabilities		(1,305	)		(29,457	)		(4,399	)
Customer deposits		(78	)		80			12
Deferred government grants		(263	)		—			—
Operating lease liabilities		(8,531	)		(19,584	)		(2,924	)
Other non-current liabilities		—			21,637			3,230

Net cash u sed in operating activities		(232,143	)		(253,634	)		(37,870	)

Cash flows from investing activities:
Proceeds from maturity of short-term investments		323,335			65,598			9,794
Proceeds from disposal of equipment		2,559			352			53
Prepayment for property and equipment		—			(7,901	)		(1,180	)
Purchase of property and equipment		(104,822	)		(35,137	)		(5,243	)
Purchase of intangible assets		(320	)		(194	)		(29	)


	As of
	December 31, 2021		June 30, 2022
	RMB		RMB		US$
			(unaudited)
Cash and cash equivalents		185,850		332,367		49,621
Restricted cash		—		2,892		432
Accounts receivable (net of allowances of RMB38,922 and RMB44,566 (US$6,654) as of December 31, 2021 and June 30, 2022, respectively)		92,197		100,960		15,072
Contract assets		42,391		44,593		6,657
Inter-company receivables*		75,560		214,874		32,080
Inventories		119,257		120,952		18,058
Prepayments and other current assets		40,957		17,388		2,596

Total current assets		556,212		834,026		124,516

Property and equipment, net		42,623		58,285		8,702
Intangible assets, net		633		375		56
Other non-current assets		8,346		10,227		1,527
Operating right-of-use assets		51,630		41,875		6,252

Total non-current assets		103,232		110,762		16,537

TOTAL ASSETS		659,444		944,788		141,053

Accounts payable		27,102		19,925		2,975
Deferred revenue		133,489		163,095		24,349
Inter-company payables*		897,633		1,397,180		208,593
Accrued liabilities and other current liabilities		89,976		62,557		9,339
Customer deposits		972		484		72
Short-term borrowing		2,370		2,370		354
Current portion of operating lease liabilities		25,692		26,681		3,983

Total current liabilities		1,177,234		1,672,292		249,665

Deferred government grant
Other non-current liabilities		8,563		24,034		3,588
Non-current portion of operating lease liabilities		29,669		17,862		2,667

Total non-current liabilities		38,232		41,896		6,255


	For the six months ended June 30,
	2021		2022
	RMB		RMB		US$
	(unaudited)		(unaudited)

Cost of revenues		745		806		120
Research and development expenses		43,230		24,222		3,616
Selling and marketing expenses		5,442		3,932		587
General and administrative expenses		118,750		128,330		19,159

		168,167		157,290		23,483


Name of related parties		Relationship
Yusheng Han		Shareholder of the shareholder of the Company, Chief Executive Officer and director
Shaokun Chuai		Shareholder of the shareholder of the Company, Chief Operating Officer and director
EaSuMed Holding Ltd.		Equity method investee
Guangzhou Burning Rock Biological Engineering Co., Ltd.		Company controlled by the Founder