Burning Rock Biotech Ltd 6-K, filed Mar 25, 2025
Burning Rock Biotech Ltd (BNR)
About this 6-K
Burning Rock Biotech Ltd filed this 6-K on March 25, 2025.
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 2025
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
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/ Yusheng Han | |
| Name: | Yusheng Han | |
| Title: | Chief Executive officer | |
| Date: March 25, 2025 |
4
Exhibit 99.1
Burning Rock Reports Unaudited Fourth Quarter and Full Year 2024 Financial Results
GUANGZHOU, China, March 25, 2025—Burning Rock Biotech Limited (NASDAQ: 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 unaudited financial results for the three months and the year ended December 31, 2024.
2024 Business Overview and Recent Updates
| • | Corporate Updates |
| • | Completed profitability-driven organizational optimization, execution towards profitability well underway |
| • | Early Detection |
| • | THUNDER study for 6-cancer test was included in the Diagnosis and Treatment Guidelines for Primary Liver Cancer (2024 Edition) and the Expert Consensus on Detection and Clinical Application of Tumor DNA Methylation Markers (2024 Edition), showing an impressive performance of ELSA-seq using cfDNA in cancer detection and origin prediction. |
| • | Therapy Selection |
| • | 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.” |
| • | Presented study results at the 2024 World Conference on Lung Cancer in September 2024. “Neoadjuvant sintilimab plus chemotherapy could be an optional treatment modality in selected EGFR-mutant NSCLC” and “Distinct Genomic and Immune Microenvironment Features of Solid or Micropapillary Predominant Subtype in Stage I Lung Adenocarcinomas.” |
| • | Pharma Services |
| • | New companion diagnostics (CDx) collaboration announced with Bayer in China in May 2024. |
| • | The companion diagnostic (CDx) for EGFR exon 20 insertion mutation (exon20ins) for sunvozertinib, developed through the collaboration of Burning Rock and Dizal, has been approved by the National Medical Products Administration (NMPA) of China in October 2024, which marks the first co-developed NGS-based CDx for lung cancer approved by NMPA since the release of the CDx guideline in China. |
Fourth Quarter 2024 Financial Results
Revenues were RMB126.0 million (US$17.3 million) for the three months ended December 31, 2024, representing a 4.1% increase from RMB121.1 million for the same period in 2023.
| • | Revenue generated from central laboratory business was RMB39.3 million (US$5.4 million) for the three months ended December 31, 2024, representing a 23.4% decrease from RMB51.3 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 in-hospital business was RMB43.5 million (US$6.0 million) for the three months ended December 31, 2024, representing a 50.9% increase from RMB28.8 million for the same period in 2024, driven by an increase in sales volume from existing hospitals and new contracted partner hospitals. |
| • | Revenue generated from pharma research and development services was RMB43.3 million (US$5.9 million) for the three months ended December 31, 2024, representing a 5.6% increase from RMB41.0 million for the same period in 2023, primarily attributable to increased development and testing services performed for our pharma customers. |
1
Cost of revenues was RMB36.6 million (US$5.0 million) for the three months ended December 31, 2024, representing a 14.8% decrease from RMB43.0 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 RMB89.4 million (US$12.3 million) for the three months ended December 31, 2024, representing a 14.5% increase from RMB78.1 million for the same period in 2023. Gross margin was 71.0% for the three months ended December 31, 2024, compared to 64.5% for the same period in 2023. By channel, gross margin of central laboratory business was 84.4% for the three months ended December 31, 2024, compared to 81.7% during the same period in 2023, primarily due to the decreased depreciation; gross margin of in-hospital business was 68.0% for the three months ended December 31, 2024, compared to 44.8% during the same period in 2023, and such increase was primarily due to an increase in sales volume to high margin hospitals and decreased depreciation and rental cost in relation to our laboratory of Guangzhou headquarters; gross margin of pharma research and development services was 61.7% for the three months ended December 31, 2024, compared to 56.9% during the same period of 2023, primarily due to an increase in test volume of higher margin projects.
Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB93.6 million (US$12.8 million) for the three months ended December 31, 2024, representing a 7.5% increase from RMB87.1 million for the same period in 2023. Non-GAAP gross margin was 74.3% for the three months ended December 31, 2024, compared to 71.9% for the same period in 2023. For more details on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.
Operating expenses were RMB171.3 million (US$23.5 million) for the three months ended December 31, 2024, representing a 29.9% decrease from RMB244.4 million for the same period in 2023. The decrease was primarily driven by budget control measures, including headcount reduction, to improve our operating efficiency.
| • | Research and development expenses were RMB52.2 million (US$7.2 million) for the three months ended December 31, 2024, representing a 28.6% decrease from RMB73.1 million for the same period in 2023, primarily due to (i) a decrease in the expenditure for detection research, and (ii) a decrease in amortized expense on share-based compensation; and (iii) a decrease in amortized expenses for office building decoration. |
| • | Selling and marketing expenses were RMB46.7 million (US$6.4 million) for the three months ended December 31, 2024, representing a 6.1% decrease from RMB49.8 million for the same period in 2023, primarily due to a decrease in staff cost resulted from the reorganization of our sales department to improve operating efficiency. |
| • | General and administrative expenses were RMB37.3 million (US$5.1 million) for the three months ended December 31, 2024, representing a 69.3% decrease from RMB121.5 million for the same period in 2023, primarily due to (i) a decrease in amortized expense on share-based compensation; (ii) a decrease in amortized expenses for office building decoration; and (iii) a decrease in impairment expenses for accounts receivables and contract assets resulting from accelerated settlement with customers with long accounts receivable. |
Net loss was RMB81.3 million (US$11.1 million) for the three months ended December 31, 2024, compared to RMB162.2 million for the same period in 2023.
Cash, cash equivalents, restricted cash were RMB522.2 million (US$71.5 million) as of December 31, 2024.
Full Year 2024 Financial Results
Revenues were RMB515.8 million (US$70.7 million) for 2024, representing a 4.0% decrease from RMB537.4 million for 2023.
| • | Revenue generated from central laboratory business was RMB175.6 million (US$24.1 million) for 2024, representing a 24.6% decrease from RMB232.8 million for 2023, primarily attributable to a decrease in the number of tests, as we continued our transition towards in-hospital testing. |
| • | Revenue generated from in-hospital business was RMB224.5 million (US$30.8 million) for 2024, representing an 19.0% increase from RMB188.7 million for 2023, driven by an increase in sales volume from existing hospitals and new contracted partner hospitals. |
2
| • | Revenue generated from pharma research and development services was RMB115.7 million (US$15.8 million) for 2024, remaining relatively stable (decreasing by 0.2%) from RMB115.9 million for 2023. |
Cost of revenues was RMB153.4 million (US$21.0 million) for 2024, representing a 11.9% decrease from RMB174.2 million for 2023, primarily due to a decrease in cost of revenues for our central laboratory business, as we continued our transition towards in-hospital testing.
Gross profit remained relatively stable at RMB362.4 million (US$49.6 million) for 2024, compared to RMB363.2 million for the same period in 2023. Gross margin increased to 70.3% for 2024 from 67.6% for 2023.
Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB386.3 million (US$52.9 million) for 2024, representing a 3.3% decrease from RMB399.4 million for 2023. Non-GAAP gross margin was 74.9% for 2024, compared to 74.3% for 2023. For more details on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and Non-GAAP Results” set forth at the end of this press release.
Operating expenses were RMB720.0 million (US$98.6 million) for 2024, representing a 30.3% decrease from RMB1,032.5 million for 2023.
| • | Research and development expenses were RMB232.3 million (US$31.8 million) for 2024, representing a 33.1% decrease from RMB347.0 million for 2023, primarily due to (i) a decrease in the expenditure for detection research; (ii) a decrease in amortized expense on share-based compensation; (iii) a decrease in staff cost resulted from the reorganization of our research and development department to improve operating efficiency; and (iv) a decrease in amortized expenses for office building. |
| • | Selling and marketing expenses were RMB190.9 million (US$26.2 million) for 2024, representing a 22.9% decrease from RMB247.7 million for 2023, 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; (iii) a decrease in amortized expense on share-based compensation; and (iv) a decrease in travel expense. |
| • | General and administrative expenses were RMB261.6 million (US$35.8 million) for 2024, representing a 40.2% decrease from RMB437.8 million for 2023, primarily due to (i) a decrease in amortized expense on share-based compensation; (ii) a decrease in amortized expenses for office building; (iii) a decrease in staff cost resulted from the reorganization of our general and administrative department to improve operating efficiency; and (iv) a decrease in operating lease |
| • | Impairment loss on long-lived assets were RMB35.1 million (US$4.8 million) for the year ended December 31, 2024 as a result of the long-lived assets impairment test conducted by the management. |
Net loss was RMB346.6 million (US$47.5 million) for 2024, compared to RMB653.7 million for 2023.
Exchange Rate Information
This press release contains translations of certain Renminbi amounts into U.S. dollars at a specified rate solely for the convenience of the reader. Unless otherwise noted, all translations from Renminbi to U.S. dollars and from U.S. dollars to Renminbi are made at a rate of RMB7.2993 to US$1.00, the exchange rate on December 31, 2024, set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the Renminbi or U.S. dollars amounts referred could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all.
About Burning Rock
Burning Rock Biotech Limited (NASDAQ: 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.
3
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 and formulate business plans. However, 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”). These non-GAAP financial measures may be different from non-GAAP methods of accounting and reporting used by other companies, including peer companies, and therefore their comparability may be limited.
The Company defines non-GAAP gross profit as gross profit excluding depreciation and amortization. The Company defines non-GAAP gross margin as non-GAAP gross profit divided by its revenue.
The Company believes presenting non-GAAP gross profit and non-GAAP gross margin excluding non-cash impact of depreciation and amortization, in addition to the Company’s GAAP gross profit and gross margin, provides a better understanding of the underlying trends in the Company’s operating business performance.
Reconciliation of these non-GAAP financial measures to the most directly comparable U.S. GAAP measures are set forth at the end of this press release, all of which should be considered when evaluating the Company’s performance.
Contact: IR@brbiotech.com
4
Selected Operating Data
| As of | ||||||||||||||||||||||||||||||||
| March 31, 2023 |
June 30, 2023 |
September 30, 2023 |
December 31, 2023 |
March 31, 2024 |
June 30, 2024 |
September 30, 2024 |
December 31, 2024 |
|||||||||||||||||||||||||
| In-hospital channel: |
||||||||||||||||||||||||||||||||
| Pipeline partner hospitals(1) |
29 | 30 | 29 | 28 | 28 | 29 | 30 | 29 | ||||||||||||||||||||||||
| Contracted partner hospitals(2) |
49 | 50 | 55 | 59 | 59 | 59 | 61 | 63 | ||||||||||||||||||||||||
| Total number of partner hospitals |
78 | 80 | 84 | 87 | 87 | 88 | 91 | 92 | ||||||||||||||||||||||||
| (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, 2023 |
June 30, 2023 |
September 30, 2023 |
December 31, 2023 |
March 31, 2024 |
June 30, 2024 |
September 30, 2024 |
December 31, 2024 |
||||||||||||||||||||||||
| (RMB in thousands) | ||||||||||||||||||||||||||||||||
| Central laboratory channel |
61,804 | 66,239 | 53,481 | 51,288 | 47,614 | 48,773 | 39,984 | 39,278 | ||||||||||||||||||||||||
| In-hospital channel |
51,561 | 53,835 | 54,496 | 28,809 | 57,387 | 59,872 | 63,769 | 43,464 | ||||||||||||||||||||||||
| Pharma research and development channel |
29,151 | 26,194 | 19,589 | 40,988 | 20,622 | 26,888 | 24,891 | 43,280 | ||||||||||||||||||||||||
| Total revenues |
142,516 | 146,268 | 127,566 | 121,085 | 125,623 | 135,533 | 128,644 | 126,022 | ||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||||||||
| Gross profit | March 31, 2023 |
June 30, 2023 |
September 30, 2023 |
December 31, 2023 |
March 31, 2024 |
June 30, 2024 |
September 30, 2024 |
December 31, 2024 |
||||||||||||||||||||||||
| (RMB in thousands) | ||||||||||||||||||||||||||||||||
| Central laboratory channel |
48,090 | 51,876 | 41,487 | 41,886 | 37,002 | 38,424 | 33,262 | 33,153 | ||||||||||||||||||||||||
| In-hospital channel |
34,409 | 33,353 | 35,459 | 12,910 | 39,192 | 44,058 | 46,580 | 29,563 | ||||||||||||||||||||||||
| Pharma research and development channel |
16,273 | 15,193 | 8,974 | 23,317 | 9,500 | 12,956 | 12,004 | 26,706 | ||||||||||||||||||||||||
| Total gross profit |
98,772 | 100,422 | 85,920 | 78,113 | 85,694 | 95,438 | 91,846 | 89,422 | ||||||||||||||||||||||||
| For the three months ended | ||||||||||||||||||||||||||||||||
| Share-based compensation expenses | March 31, 2023 |
June 30, 2023 |
September 30, 2023 |
December 31, 2023 |
March 31, 2024 |
June 30, 2024 |
September 30, 2024 |
December 31, 2024 |
||||||||||||||||||||||||
| (RMB in thousands) | ||||||||||||||||||||||||||||||||
| Cost of revenues |
353 | 627 | 680 | 654 | 596 | 464 | 289 | 520 | ||||||||||||||||||||||||
| Research and development expenses |
13,612 | 15,301 | 12,161 | 12,401 | 12,287 | 12,008 | 3,180 | 3,202 | ||||||||||||||||||||||||
| Selling and marketing expenses |
1,606 | 3,389 | 2,848 | 1,816 | 508 | 1,232 | 1,917 | 1,353 | ||||||||||||||||||||||||
| General and administrative expenses |
62,595 | 18,502 | 57,704 | 56,472 | 55,990 | 54,407 | 4,732 | 2,937 | ||||||||||||||||||||||||
| Total share-based compensation expenses |
78,166 | 37,819 | 73,393 | 71,343 | 69,381 | 68,111 | 10,118 | 8,012 | ||||||||||||||||||||||||
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, 2023 |
June 30, 2023 |
September 30, 2023 |
December 31, 2023 |
March 31, 2024 |
June 30, 2024 |
September 30, 2024 |
December 31, 2024 |
December 31, 2024 |
||||||||||||||||||||||||||||
| RMB | RMB | RMB | RMB | RMB | RMB | RMB | RMB | US$ | ||||||||||||||||||||||||||||
| Revenues |
142,516 | 146,268 | 127,566 | 121,085 | 125,623 | 135,533 | 128,644 | 126,022 | 17,265 | |||||||||||||||||||||||||||
| Cost of revenues |
(43,744 | ) | (45,846 | ) | (41,646 | ) | (42,972 | ) | (39,929 | ) | (40,095 | ) | (36,798 | ) | (36,600 | ) | (5,014 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Gross profit |
98,772 | 100,422 | 85,920 | 78,113 | 85,694 | 95,438 | 91,846 | 89,422 | 12,251 | |||||||||||||||||||||||||||
| Operating expenses: |
||||||||||||||||||||||||||||||||||||
| Research and development expenses |
(94,417 | ) | (95,779 | ) | (83,701 | ) | (73,119 | ) | (65,985 | ) | (64,952 | ) | (49,150 | ) | (52,203 | ) | (7,152 | ) | ||||||||||||||||||
| Selling and marketing expenses |
(64,774 | ) | (70,842 | ) | (62,310 | ) | (49,785 | ) | (46,856 | ) | (48,907 | ) | (48,411 | ) | (46,730 | ) | (6,402 | ) | ||||||||||||||||||
| General and administrative expenses |
(128,039 | ) | (69,525 | ) | (118,724 | ) | (121,533 | ) | (98,681 | ) | (92,794 | ) | (32,874 | ) | (37,289 | ) | (5,109 | ) | ||||||||||||||||||
| Impairment loss on long-lived assets |
— | — | — | — | — | — | — | (35,127 | ) | (4,812 | ) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Total operating expenses |
(287,230 | ) | (236,146 | ) | (264,735 | ) | (244,437 | ) | (211,522 | ) | (206,653 | ) | (130,435 | ) | (171,349 | ) | (23,475 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Loss from operations |
(188,458 | ) | (135,724 | ) | (178,815 | ) | (166,324 | ) | (125,828 | ) | (111,215 | ) | (38,589 | ) | (81,927 | ) | (11,224 | ) | ||||||||||||||||||
| Interest income |
3,144 | 5,255 | 4,018 | 5,539 | 4,038 | 3,187 | 3,173 | 1,814 | 249 | |||||||||||||||||||||||||||
| Other income (expense), net |
599 | (118 | ) | (157 | ) | 160 | 434 | (82 | ) | 1 | 4,353 | 596 | ||||||||||||||||||||||||
| Foreign exchange (loss) gain, net |
(116 | ) | (210 | ) | 423 | (517 | ) | (13 | ) | 262 | (129 | ) | (220 | ) | (30 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Loss before income tax |
(184,831 | ) | (130,797 | ) | (174,531 | ) | (161,142 | ) | (121,369 | ) | (107,848 | ) | (35,544 | ) | (75,980 | )) | (10,409 | ) | ||||||||||||||||||
| Income tax expenses |
(422 | ) | (445 | ) | (450 | ) | (1,071 | ) | (180 | ) | (190 | ) | (201 | ) | (5,314 | ) | (728 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Net loss |
(185,253 | ) | (131,242 | ) | (174,981 | ) | (162,213 | ) | (121,549 | ) | (108,038 | ) | (35,745 | ) | (81,294 | ) | (11,137 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
| Net loss attributable to Burning Rock Biotech Limited’s shareholders |
(185,253 | ) | (131,242 | ) | (174,981 | ) | (162,213 | ) | (121,549 | ) | (108,038 | ) | (35,745 | ) | (81,294 | ) | (11,137 | ) | ||||||||||||||||||
| Loss per share for class A and class B ordinary shares: |
||||||||||||||||||||||||||||||||||||
| Class A ordinary shares - basic and diluted |
(1.81 | ) | (1.28 | ) | (1.71 | ) | (1.58 | ) | (1.19 | ) | (1.05 | ) | (0.35 | ) | (0.79 | ) | (0.11 | ) | ||||||||||||||||||
| Class B ordinary shares - basic and diluted |
(1.81 | ) | (1.28 | ) | (1.71 | ) | (1.58 | ) | (1.19 | ) | (1.05 | ) | (0.35 | ) | (0.79 | ) | (0.11 | ) | ||||||||||||||||||
| Weighted average shares outstanding used in loss per share computation: |
||||||||||||||||||||||||||||||||||||
| Class A ordinary shares - basic and diluted |
85,065,585 | 85,151,052 | 85,000,869 | 85,071,360 | 85,219,188 | 85,271,858 | 85,902,670 | 86,036,286 | |
86,036,286 |
| |||||||||||||||||||||||||
| 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 |
(5,659 | ) | 14,829 | (1,955 | ) | (3,026 | ) | 590 | 940 | (4,054 | ) | 6,009 | 823 | |||||||||||||||||||||||
| Total comprehensive loss |
(190,912 | ) | (116,413 | ) | (176,936 | ) | (165,239 | ) | (120,959 | ) | (107,098 | ) | (39,799 | ) | (75,285 | ) | (10,314 | ) | ||||||||||||||||||
| Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders |
(190,912 | ) | (116,413 | ) | (176,936 | ) | (165,239 | ) | (120,959 | ) | (107,098 | ) | (39,799 | ) | (75,285 | ) | (10,314 | ) | ||||||||||||||||||
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, 2023 |
December 31, 2024 |
December 31, 2024 |
||||||||||
| RMB | RMB | US$ | ||||||||||
| Revenues |
537,435 | 515,822 | 70,667 | |||||||||
| Cost of revenues |
(174,208 | ) | (153,422 | ) | (21,020 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Gross profit |
363,227 | 362,400 | 49,647 | |||||||||
| Operating expenses: |
||||||||||||
| Research and development expenses |
(347,016 | ) | (232,290 | ) | (31,824 | ) | ||||||
| Selling and marketing expenses |
(247,711 | ) | (190,904 | ) | (26,154 | ) | ||||||
| General and administrative expenses |
(437,821 | ) | (261,638 | ) | (35,844 | ) | ||||||
| Impairment loss on long-lived assets |
— | (35,127 | ) | (4,812 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Total operating expenses |
(1,032,548 | ) | (719,959 | ) | (98,634 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Loss from operations |
(669,321 | ) | (357,559 | ) | (48,987 | ) | ||||||
| Interest income |
17,956 | 12,212 | 1,673 | |||||||||
| Other income, net |
484 | 4,706 | 645 | |||||||||
| Foreign exchange loss, net |
(420 | ) | (100 | ) | (14 | ) | ||||||
| Loss before income tax |
(651,301 | ) | (340,741 | ) | (46,683 | ) | ||||||
| Income tax expenses |
(2,388 | ) | (5,885 | ) | (806 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net loss |
(653,689 | ) | (346,626 | ) | (47,489 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Net loss attributable to Burning Rock Biotech Limited’s shareholders |
(653,689 | ) | (346,626 | ) | (47,489 | ) | ||||||
| Loss per share for class A and class B ordinary shares: |
||||||||||||
| Class A ordinary shares - basic and diluted |
(6.38 | ) | (3.37 | ) | (0.46 | ) | ||||||
| Class B ordinary shares - basic and diluted |
(6.38 | ) | (3.37 | ) | (0.46 | ) | ||||||
| Weighted average shares outstanding used in loss per share computation: |
||||||||||||
| Class A ordinary shares - basic and diluted |
85,071,691 | 85,610,197 | 85,610,197 | |||||||||
| 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 |
4,189 | 3,485 | 477 | |||||||||
| Total comprehensive loss |
(649,500 | ) | (343,141 | ) | (47,012 | ) | ||||||
| Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders |
(649,500 | ) | (343,141 | ) | (47,012 | ) | ||||||
8
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
| As of | ||||||||||||
| December 31, 2023 |
December 31, 2024 |
December 31, 2024 |
||||||||||
| RMB | RMB | US$ | ||||||||||
| ASSETS |
||||||||||||
| Current assets: |
||||||||||||
| Cash and cash equivalents |
615,096 | 519,849 | 71,219 | |||||||||
| Restricted cash |
120 | 2,313 | 317 | |||||||||
| Accounts receivable, net |
126,858 | 152,013 | 20,826 | |||||||||
| Contract assets, net |
22,748 | 13,855 | 1,898 | |||||||||
| Inventories, net |
69,020 | 62,625 | 8,580 | |||||||||
| Prepayments and other current assets |
50,254 | 25,963 | 3,557 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total current assets |
884,096 | 776,618 | 106,397 | |||||||||
|
|
|
|
|
|
|
|||||||
| Non-current assets: |
||||||||||||
| Equity method investment |
337 | — | — | |||||||||
| Convertible note receivable |
5,320 | — | — | |||||||||
| Property and equipment, net |
131,912 | 47,152 | 6,460 | |||||||||
| Operating right-of-use assets |
12,284 | 53,188 | 7,287 | |||||||||
| Intangible assets, net |
964 | 421 | 58 | |||||||||
| Other non-current assets |
5,088 | 7,926 | 1,086 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total non-current assets |
155,905 | 108,687 | 14,891 | |||||||||
|
|
|
|
|
|
|
|||||||
| TOTAL ASSETS |
1,040,001 | 885,305 | 121,288 | |||||||||
|
|
|
|
|
|
|
|||||||
9
Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets (Continued)
(in thousands)
| As of | ||||||||||||
| December 31, 2023 |
December 31, 2024 |
December 31, 2024 |
||||||||||
| RMB | RMB | US$ | ||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||||||
| Current liabilities: |
||||||||||||
| Accounts payable |
18,061 | 33,747 | 4,623 | |||||||||
| Deferred revenue |
130,537 | 117,895 | 16,152 | |||||||||
| Accrued liabilities and other current liabilities |
104,935 | 89,498 | 12,262 | |||||||||
| Customer deposits |
1,197 | 592 | 81 | |||||||||
| Current portion of operating lease liabilities |
8,634 | 24,567 | 3,366 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total current liabilities |
263,364 | 266,299 | 36,484 | |||||||||
|
|
|
|
|
|
|
|||||||
| Non-current liabilities: |
||||||||||||
| Non-current portion of operating lease liabilities |
3,690 | 27,754 | 3,802 | |||||||||
| Other non-current liabilities |
4,537 | 10,425 | 1,428 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total non-current liabilities |
8,227 | 38,179 | 5,230 | |||||||||
|
|
|
|
|
|
|
|||||||
| TOTAL LIABILITIES |
271,591 | 304,478 | 41,714 | |||||||||
|
|
|
|
|
|
|
|||||||
| Shareholders’ equity: |
||||||||||||
| Class A ordinary shares |
116 | 124 | 17 | |||||||||
| Class B ordinary shares |
21 | 21 | 3 | |||||||||
| Additional paid-in capital |
4,849,337 | 5,002,255 | 685,306 | |||||||||
| Treasury stock |
(65,896 | ) | (63,264 | ) | (8,667 | ) | ||||||
| Accumulated deficits |
(3,853,635 | ) | (4,200,261 | ) | (575,433 | ) | ||||||
| Accumulated other comprehensive loss |
(161,533 | ) | (158,048 | ) | (21,652 | ) | ||||||
|
|
|
|
|
|
|
|||||||
| Total shareholders’ equity |
768,410 | 580,827 | 79,574 | |||||||||
|
|
|
|
|
|
|
|||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
1,040,001 | 885,305 | 121,288 | |||||||||
|
|
|
|
|
|
|
|||||||
10
Burning Rock Biotech Limited
Unaudited Condensed Statements of Cash Flows
(in thousands)
| For the three months ended | ||||||||||||
| December 31, 2023 |
December 31, 2024 |
December 31, 2024 |
||||||||||
| RMB | RMB | US$ | ||||||||||
| Net cash (used in) generated from operating activities |
(16,019 | ) | 19,062 | 2,611 | ||||||||
| Net cash used in investing activities |
(328 | ) | (812 | ) | (111 | ) | ||||||
| Net cash used in financing activities |
(1,909 | ) | (74 | ) | (10 | ) | ||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash |
(3,277 | ) | 5,739 | 787 | ||||||||
| Net (decrease) increase in cash, cash equivalents and restricted cash |
(21,533 | ) | 23,915 | 3,277 | ||||||||
| Cash, cash equivalents and restricted cash at the beginning of period |
636,749 | 498,247 | 68,259 | |||||||||
| Cash, cash equivalents and restricted cash at the end of period |
615,216 | 522,162 | 71,536 | |||||||||
| For the year ended | ||||||||||||
| December 31, 2023 |
December 31, 2024 |
December 31, 2024 |
||||||||||
| RMB | RMB | US$ | ||||||||||
| Net cash used in operating activities |
(255,783 | ) | (92,261 | ) | (12,640 | ) | ||||||
| Net cash used in investing activities |
(9,300 | ) | (4,412 | ) | (604 | ) | ||||||
| Net cash used in financing activities |
(48,832 | ) | (72 | ) | (10 | ) | ||||||
| Effect of exchange rate on cash, cash equivalents and restricted cash |
3,863 | 3,691 | 506 | |||||||||
| Net decrease in cash, cash equivalents and restricted cash |
(310,052 | ) | (93,054 | ) | (12,748 | ) | ||||||
| Cash, cash equivalents and restricted cash at the beginning of period |
925,268 | 615,216 | 84,284 | |||||||||
| Cash, cash equivalents and restricted cash at the end of period |
615,216 | 522,162 | 71,536 | |||||||||
11
Burning Rock Biotech Limited
Reconciliations of GAAP and Non-GAAP Results
| For the three months ended | ||||||||||||||||||||||||||||||||
| March 31, 2023 |
June 30, 2023 |
September 30, 2023 |
December 31, 2023 |
March 31, 2024 |
June 30, 2024 |
September 30, 2024 |
December 31, 2024 |
|||||||||||||||||||||||||
| (RMB in thousands) | ||||||||||||||||||||||||||||||||
| Gross profit: |
||||||||||||||||||||||||||||||||
| Central laboratory channel |
48,090 | 51,876 | 41,487 | 41,886 | 37,002 | 38,424 | 33,262 | 33,153 | ||||||||||||||||||||||||
| In-hospital channel |
34,409 | 33,353 | 35,459 | 12,910 | 39,192 | 44,058 | 46,580 | 29,563 | ||||||||||||||||||||||||
| Pharma research and development channel |
16,273 | 15,193 | 8,974 | 23,317 | 9,500 | 12,956 | 12,004 | 26,706 | ||||||||||||||||||||||||
| Total gross profit |
98,772 | 100,422 | 85,920 | 78,113 | 85,694 | 95,438 | 91,846 | 89,422 | ||||||||||||||||||||||||
| Add: depreciation and amortization: |
||||||||||||||||||||||||||||||||
| Central laboratory channel |
2,567 | 2,645 | 2,550 | 2,414 | 1,919 | 1,226 | 1,277 | 1,010 | ||||||||||||||||||||||||
| In-hospital channel |
2,582 | 2,637 | 2,751 | 2,728 | 1,524 | 824 | 798 | 623 | ||||||||||||||||||||||||
| Pharma research and development channel |
3,974 | 3,665 | 3,863 | 3,808 | 3,856 | 4,417 | 3,846 | 2,534 | ||||||||||||||||||||||||
| Total depreciation and amortization included in cost of revenues |
9,123 | 8,947 | 9,164 | 8,950 | 7,299 | 6,467 | 5,921 | 4,167 | ||||||||||||||||||||||||
| Non-GAAP gross profit: |
||||||||||||||||||||||||||||||||
| Central laboratory channel |
50,657 | 54,521 | 44,037 | 44,300 | 38,921 | 39,650 | 34,539 | 34,163 | ||||||||||||||||||||||||
| In-hospital channel |
36,991 | 35,990 | 38,210 | 15,638 | 40,716 | 44,882 | 47,378 | 30,186 | ||||||||||||||||||||||||
| Pharma research and development channel |
20,247 | 18,858 | 12,837 | 27,125 | 13,356 | 17,373 | 15,850 | 29,240 | ||||||||||||||||||||||||
| Total non-GAAP gross profit |
107,895 | 109,369 | 95,084 | 87,063 | 92,993 | 101,905 | 97,767 | 93,589 | ||||||||||||||||||||||||
| Non-GAAP gross margin: |
||||||||||||||||||||||||||||||||
| Central laboratory channel |
82.0 | % | 82.3 | % | 82.3 | % | 86.4 | % | 81.7 | % | 81.3 | % | 86.4 | % | 87.0 | % | ||||||||||||||||
| In-hospital channel |
71.7 | % | 66.9 | % | 70.1 | % | 54.3 | % | 70.9 | % | 75.0 | % | 74.3 | % | 69.5 | % | ||||||||||||||||
| Pharma research and development channel |
69.5 | % | 72.0 | % | 65.5 | % | 66.2 | % | 64.8 | % | 64.6 | % | 63.7 | % | 67.6 | % | ||||||||||||||||
| Total non-GAAP gross margin |
75.7 | % | 74.8 | % | 74.5 | % | 71.9 | % | 74.0 | % | 75.2 | % | 76.0 | % | 74.3 | % | ||||||||||||||||
12
Burning Rock Biotech Limited
Reconciliations of GAAP and Non-GAAP Results
| For the year ended | ||||||||
| December 31, 2023 |
December 31, 2024 |
|||||||
| (RMB in thousands) | ||||||||
| Gross profit: |
||||||||
| Central laboratory channel |
183,339 | 141,841 | ||||||
| In-hospital channel |
116,131 | 159,393 | ||||||
| Pharma research and development channel |
63,757 | 61,166 | ||||||
| Total gross profit |
363,227 | 362,400 | ||||||
| Add: depreciation and amortization: |
||||||||
| Central laboratory channel |
10,176 | 5,432 | ||||||
| In-hospital channel |
10,699 | 3,769 | ||||||
| Pharma research and development channel |
15,310 | 14,653 | ||||||
| Total depreciation and amortization included in cost of revenues |
36,185 | 23,854 | ||||||
| Non-GAAP gross profit: |
||||||||
| Central laboratory channel |
193,515 | 147,273 | ||||||
| In-hospital channel |
126,830 | 163,162 | ||||||
| Pharma research and development channel |
79,067 | 75,819 | ||||||
| Total non-GAAP gross profit |
399,412 | 386,254 | ||||||
| Non-GAAP gross margin: |
||||||||
| Central laboratory channel |
83.1 | % | 83.8 | % | ||||
| In-hospital channel |
67.2 | % | 72.7 | % | ||||
| Pharma research and development channel |
68.2 | % | 65.5 | % | ||||
| Total non-GAAP gross margin |
74.3 | % | 74.9 | % | ||||
13