Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Burning Rock Reports First Quarter 2024 Financial Results By: Burning Rock Biotech Limited via GlobeNewswire May 29, 2024 at 01:34 AM EDT GUANGZHOU, China, May 29, 2024 (GLOBE NEWSWIRE) -- 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 March 31, 2024. Recent Business Updates 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. Pharma Services Total value of new contracts during the first quarter of 2024 amounted to RMB218 million, representing a growth over 100% from the same period in 2023. First Quarter 2024 Financial Results Total Revenues were RMB125.6 million (US$17.4 million) for the three months ended March 31, 2024, representing a 11.9% decrease from RMB142.5 million for the same period in 2023, as we transition from central-lab to more in-hospital based testing. Importantly, in-hospital segment continued its double-digit growth. Revenue generated from in-hospital business was RMB57.4 million (US$7.9 million) for the three months ended March 31, 2024, representing a 11.3% increase from RMB51.6 million for the same period in 2023, driven by an increase in sales volume.Revenue generated from central laboratory business was RMB47.6 million (US$6.6 million) for the three months ended March 31, 2024, representing a 23.0% decrease from RMB61.8 million for the same period in 2023, primarily attributable to a decrease in the number of tests, as we continued our transition towards in-hospital testing.Revenue generated from pharma research and development services was RMB20.6 million (US$2.9 million) for the three months ended March 31, 2024, representing a 29.3% decrease from RMB29.2 million for the same period in 2023, primarily attributable to decreased testing services performed for our pharma customers due to timing of lumpy projects. Cost of revenues was RMB39.9 million (US$5.5 million) for the three months ended March 31, 2024, representing an 8.7% decrease from RMB43.7 million for the same period in 2023, primarily due to a decrease in cost of central laboratory business, which was in line with the decrease in revenue generated from this business and partially offset by an increase in sales volume of in-hospital business and a decrease in depreciation expense for all kinds of business. Gross profit was RMB85.7 million (US$11.9 million) for the three months ended March 31, 2024, representing a 13.2% decrease from RMB98.8 million for the same period in 2023. Gross margin was 68.2% for the three months ended March 31, 2024, compared to 69.3% for the same period in 2023. By channel, gross margin of central laboratory business was 77.7% for the three months ended March 31, 2024, compared to 77.8% during the same period in 2023; gross margin of in-hospital business was 68.3% for the three months ended March 31, 2024, compared to 66.7% during the same period in 2023, primarily due to a decrease in amortization; gross margin of pharma research and development services was 46.1% for the three months ended March 31, 2024, compared to 55.8% during the same period of 2023. Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB93.0 million (US$12.9 million) for the three months ended March 31, 2024, representing a 13.8% decrease from RMB107.9 million for the same period in 2023. Non-GAAP gross margin was 74.0% for the three months ended March 31, 2024, compared to 75.7% for the same period in 2023. Operating expenses were RMB211.5 million (US$29.3 million) for the three months ended March 31, 2024, representing a 26.4% decrease from RMB287.2 million for the same period in 2023. The decrease was primarily driven by improved operating efficiency. Research and development expenses were RMB66.0 million (US$9.1 million) for the three months ended March 31, 2024, representing a 30.1% decrease from RMB94.4 million for the same period in 2023, primarily due to (i) a decrease in staff cost resulted from the reorganization of our research and development department to improve operating efficiency, and (ii) a decrease in the expenditure for research projects.Selling and marketing expenses were RMB46.9 million (US$6.5 million) for the three months ended March 31, 2024, representing a 27.7% decrease from RMB64.8 million for the same period in 2023, primarily due to (i) a decrease in staff cost resulted from the reorganization of the sales department and improvement in operating efficiency; (ii) a decrease in conference fee; and (iii) a decrease in travel expense.General and administrative expenses were RMB98.7 million (US$13.7 million) for the three months ended March 31, 2024, representing a 22.9% decrease from RMB128.0 million for the same period in 2023, primarily due to (i) a decrease in general and administrative personnel’s staff cost, and (ii) a decrease in amortized expenses for office building; (iii) a decrease in the provision for allowance for doubtful accounts. Net loss was RMB121.5 million (US$16.8 million) for the three months ended March 31, 2024, compared to RMB185.3 million for the same period in 2023. Cash, cash equivalents, restricted cash and short-term investments were RMB572.7 million (US$79.3 million) as of March 31, 2024. 2024 Financial Guidance We currently expect to achieve breakeven (measured by non-GAAP gross profit minus non-GAAP SG&A) for the full year 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. Corporate structure reorganization The Company moved its PRC onshore headquarter from Beijing to Guangzhou in May 2024. Burning Rock Biotech Limited, our ultimate Cayman Islands holding company, does not have any substantive operations other than directly controlling Guangzhou Burning Rock Biotech Limited, our new wholly foreign owned entity, or WFOE, and indirectly controlling Burning Rock (Beijing) Biotechnology Co., Ltd., the variable interest entity, or VIE, through certain contractual arrangements. The equity change of Beijing Burning Rock Biotech Limited had been completed, and certain contractual agreements had been amended. The chart below sets forth our corporate structure and identifies our principal subsidiaries as of the date of this release: Conference Call Information Burning Rock will host a conference call to discuss the first quarter 2024 financial results at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Hong Kong time) on May 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/BIbdb6210ab73d4bb7b25e3ffbdc206d07. 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/ovj2q2n6. 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 and LSE: BNR), whose mission is to guard life via science, focuses on the application of next generation sequencing (NGS) technology in the field of precision oncology. Its business consists of i) NGS-based therapy selection testing for late-stage cancer patients, and ii) cancer early detection, which has moved beyond proof-of-concept R&D into the clinical validation stage. For more information about Burning Rock, please visit: ir.brbiotech.com. Safe Harbor Statement This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Burning Rock may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Burning Rock’s beliefs and expectations, are forward-looking statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Burning Rock’s control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. All information provided in this press release is as of the date of this press release, and Burning Rock does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. Non-GAAP Measures In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP gross profit and non-GAAP gross margin, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The company defines non-GAAP gross profit as gross profit excluding depreciation and amortization. The company defines non-GAAP gross margin as gross margin excluding depreciation and amortization. The company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The company believe non-GAAP gross profit and non-GAAP gross margin excluding non-cash impact of depreciation and amortization reflect the company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. Contact: IR@brbiotech.com Selected Operating Data As of March 31,2023 June 30,2023 September 30,2023 December 31,2023 March 31,2024In-hospital Channel: Pipeline partner hospitals(1)29 30 29 28 28Contracted partner hospitals(2)49 50 55 59 59Total number of partner hospitals 78 80 84 87 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. Selected Financial Data For the three months endedRevenuesMarch 31,2023 June 30,2023 September 30,2023 December 31,2023 March 31,2024 (RMB in thousands)Central laboratory channel61,804 66,239 53,481 51,288 47,614In-hospital channel51,561 53,835 54,496 28,809 57,387Pharma research and development channel29,151 26,194 19,589 40,988 20,622Total revenues142,516 146,268 127,566 121,085 125,623 For the three months endedGross profit March 31,2023 June 30,2023 September 30,2023 December 31,2023 March 31,2024 (RMB in thousands)Central laboratory channel48,090 51,876 41,487 41,886 37,002In-hospital channel34,409 33,353 35,459 12,910 39,192Pharma research and development channel16,273 15,193 8,974 23,317 9,500Total gross profit98,772 100,422 85,920 78,113 85,694 For the three months endedShare-based compensation expensesMarch 31,2023 June 30,2023 September 30,2023 December 31,2023 March 31,2024 (RMB in thousands)Cost of revenues353 627 680 654 596Research and development expenses13,612 15,301 12,161 12,401 12,287Selling and marketing expenses1,606 3,389 2,848 1,816 508General and administrative expenses62,595 18,502 57,704 56,472 55,990Total share-based compensation expenses78,166 37,819 73,393 71,343 69,381 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 March 31,2024 RMB RMB RMB RMB RMB US$ Revenues142,516 146,268 127,566 121,085 125,623 17,399 Cost of revenues(43,744) (45,846) (41,646) (42,972) (39,929) (5,531)Gross profit98,772 100,422 85,920 78,113 85,694 11,868 Operating expenses: Research and development expenses(94,417) (95,779) (83,701) (73,119) (65,985) (9,139)Selling and marketing expenses(64,774) (70,842) (62,310) (49,785) (46,856) (6,489)General and administrative expenses(128,039) (69,525) (118,724) (121,533) (98,681) (13,667)Total operating expenses(287,230) (236,146) (264,735) (244,437) (211,522) (29,295)Loss from operations (188,458) (135,724) (178,815) (166,324) (125,828) (17,427)Interest income3,144 5,255 4,018 5,539 4,038 559 Other income (expense), net599 (118) (157) 160 434 60 Foreign exchange (loss) gain, net(116) (210) 423 (517) (13) (2)Loss before income tax(184,831) (130,797) (174,531) (161,142) (121,369) (16,810)Income tax expenses(422) (445) (450) (1,071) (180) (25)Net loss(185,253) (131,242) (174,981) (162,213) (121,549) (16,835)Net loss attributable to Burning Rock Biotech Limited’s shareholders(185,253) (131,242) (174,981) (162,213) (121,549) (16,835)Net loss attributable to ordinary shareholders(185,253) (131,242) (174,981) (162,213) (121,549) (16,835)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) (0.16)Class B ordinary shares - basic and diluted(1.81) (1.28) (1.71) (1.58) (1.19) (0.16)Weighted average shares outstanding used in loss per share computation: Class A ordinary shares - basic and diluted85,065,585 85,151,052 85,000,869 85,071,360 85,219,188 85,219,188 Class B ordinary shares - basic and diluted17,324,848 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(5,659) 14,829 (1,955) (3,026) 590 82 Total comprehensive loss(190,912) (116,413) (176,936) (165,239) (120,959) (16,753)Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders(190,912) (116,413) (176,936) (165,239) (120,959) (16,753) Burning Rock Biotech LimitedUnaudited Condensed Consolidated Balance Sheets(In thousands) As of December 31,2023 March 31,2024 March 31,2024 RMB RMB US$ASSETS Current assets: Cash and cash equivalents615,096 572,616 79,306Restricted cash120 58 8Accounts receivable, net126,858 135,360 18,747Contract assets, net22,748 23,063 3,194Inventories, net69,020 63,121 8,742Prepayments and other current assets, net50,254 46,630 6,458Total current assets884,096 840,848 116,455Non-current assets: Equity method investment337 249 34Convertible note receivable5,320 5,320 737Property and equipment, net131,912 114,498 15,858Operating right-of-use assets12,284 19,655 2,722Intangible assets, net964 747 103Other non-current assets5,088 3,609 500Total non-current assets155,905 144,078 19,954TOTAL ASSETS 1,040,001 984,926 136,409 Burning Rock Biotech LimitedUnaudited Condensed Consolidated Balance Sheets (Continued)(in thousands) As of December 31,2023 March 31,2024 March 31,2024 RMB RMB US$LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable18,061 24,630 3,411 Deferred revenue130,537 127,516 17,661 Accrued liabilities and other current liabilities104,935 91,037 12,608 Customer deposits1,197 1,197 166 Current portion of operating lease liabilities8,634 11,026 1,527 Total current liabilities263,364 255,406 35,373 Non-current liabilities: Non-current portion of operating lease liabilities3,690 7,971 1,104 Other non-current liabilities4,537 4,717 651 Total non-current liabilities8,227 12,688 1,755 TOTAL LIABILITIES271,591 268,094 37,128 Shareholders’ equity: Class A ordinary shares116 116 16 Class B ordinary shares21 21 3 Additional paid-in capital4,849,337 4,918,718 681,235 Treasury stock(65,896) (65,896) (9,126)Accumulated deficits(3,853,635) (3,975,184) (550,557)Accumulated other comprehensive loss(161,533) (160,943) (22,290)Total shareholders’ equity768,410 716,832 99,281 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY1,040,001 984,926 136,409 Burning Rock Biotech LimitedUnaudited Condensed Statements of Cash Flows(in thousands) For the three months ended March 31,2023 March 31,2024 March 31,2024 RMB RMB US$Net cash used in operating activities(113,143) (40,209) (5,569)Net cash used in investing activities(4,059) (2,386) (330)Net cash used in financing activities(32) - - Effect of exchange rate on cash, cash equivalents and restricted cash(4,892) 53 7 Net decrease in cash, cash equivalents and restricted cash (122,126) (42,542) (5,892)Cash, cash equivalents and restricted cash at the beginning of period925,268 615,216 85,206 Cash, cash equivalents and restricted cash at the end of period803,142 572,674 79,314 Burning Rock Biotech LimitedReconciliations of GAAP and Non-GAAP Results For the three months ended March 31,2023 June 30,2023 September30, 2023 December 31,2023 March31, 2024 (RMB in thousands)Gross profit: Central laboratory channel48,090 51,876 41,487 41,886 37,002In-hospital channel34,409 33,353 35,459 12,910 39,192Pharma research and development channel16,273 15,193 8,974 23,317 9,500Total gross profit98,772 100,422 85,920 78,113 85,694Add: depreciation and amortization: Central laboratory channel2,567 2,645 2,550 2,414 1,919In-hospital channel2,582 2,637 2,751 2,728 1,524Pharma research and development channel3,974 3,665 3,863 3,808 3,856Total depreciation and amortization included in cost of revenues9,123 8,947 9,164 8,950 7,299Non-GAAP gross profit: Central laboratory channel50,657 54,521 44,037 44,300 38,921In-hospital channel36,991 35,990 38,210 15,638 40,716Pharma research and development channel20,247 18,858 12,837 27,125 13,356Total non-GAAP gross profit107,895 109,369 95,084 87,063 92,993Non-GAAP gross margin: Central laboratory channel82.0% 82.3% 82.3% 86.4% 81.7%In-hospital channel71.7% 66.9% 70.1% 54.3% 70.9%Pharma research and development channel69.5% 72.0% 65.5% 66.2% 64.8%Total non-GAAP gross margin75.7% 74.8% 74.5% 71.9% 74.0% A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/370e7914-309e-48a2-b52f-03fe37ffa17d Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Burning Rock Reports First Quarter 2024 Financial Results By: Burning Rock Biotech Limited via GlobeNewswire May 29, 2024 at 01:34 AM EDT GUANGZHOU, China, May 29, 2024 (GLOBE NEWSWIRE) -- 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 March 31, 2024. Recent Business Updates 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. Pharma Services Total value of new contracts during the first quarter of 2024 amounted to RMB218 million, representing a growth over 100% from the same period in 2023. First Quarter 2024 Financial Results Total Revenues were RMB125.6 million (US$17.4 million) for the three months ended March 31, 2024, representing a 11.9% decrease from RMB142.5 million for the same period in 2023, as we transition from central-lab to more in-hospital based testing. Importantly, in-hospital segment continued its double-digit growth. Revenue generated from in-hospital business was RMB57.4 million (US$7.9 million) for the three months ended March 31, 2024, representing a 11.3% increase from RMB51.6 million for the same period in 2023, driven by an increase in sales volume.Revenue generated from central laboratory business was RMB47.6 million (US$6.6 million) for the three months ended March 31, 2024, representing a 23.0% decrease from RMB61.8 million for the same period in 2023, primarily attributable to a decrease in the number of tests, as we continued our transition towards in-hospital testing.Revenue generated from pharma research and development services was RMB20.6 million (US$2.9 million) for the three months ended March 31, 2024, representing a 29.3% decrease from RMB29.2 million for the same period in 2023, primarily attributable to decreased testing services performed for our pharma customers due to timing of lumpy projects. Cost of revenues was RMB39.9 million (US$5.5 million) for the three months ended March 31, 2024, representing an 8.7% decrease from RMB43.7 million for the same period in 2023, primarily due to a decrease in cost of central laboratory business, which was in line with the decrease in revenue generated from this business and partially offset by an increase in sales volume of in-hospital business and a decrease in depreciation expense for all kinds of business. Gross profit was RMB85.7 million (US$11.9 million) for the three months ended March 31, 2024, representing a 13.2% decrease from RMB98.8 million for the same period in 2023. Gross margin was 68.2% for the three months ended March 31, 2024, compared to 69.3% for the same period in 2023. By channel, gross margin of central laboratory business was 77.7% for the three months ended March 31, 2024, compared to 77.8% during the same period in 2023; gross margin of in-hospital business was 68.3% for the three months ended March 31, 2024, compared to 66.7% during the same period in 2023, primarily due to a decrease in amortization; gross margin of pharma research and development services was 46.1% for the three months ended March 31, 2024, compared to 55.8% during the same period of 2023. Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB93.0 million (US$12.9 million) for the three months ended March 31, 2024, representing a 13.8% decrease from RMB107.9 million for the same period in 2023. Non-GAAP gross margin was 74.0% for the three months ended March 31, 2024, compared to 75.7% for the same period in 2023. Operating expenses were RMB211.5 million (US$29.3 million) for the three months ended March 31, 2024, representing a 26.4% decrease from RMB287.2 million for the same period in 2023. The decrease was primarily driven by improved operating efficiency. Research and development expenses were RMB66.0 million (US$9.1 million) for the three months ended March 31, 2024, representing a 30.1% decrease from RMB94.4 million for the same period in 2023, primarily due to (i) a decrease in staff cost resulted from the reorganization of our research and development department to improve operating efficiency, and (ii) a decrease in the expenditure for research projects.Selling and marketing expenses were RMB46.9 million (US$6.5 million) for the three months ended March 31, 2024, representing a 27.7% decrease from RMB64.8 million for the same period in 2023, primarily due to (i) a decrease in staff cost resulted from the reorganization of the sales department and improvement in operating efficiency; (ii) a decrease in conference fee; and (iii) a decrease in travel expense.General and administrative expenses were RMB98.7 million (US$13.7 million) for the three months ended March 31, 2024, representing a 22.9% decrease from RMB128.0 million for the same period in 2023, primarily due to (i) a decrease in general and administrative personnel’s staff cost, and (ii) a decrease in amortized expenses for office building; (iii) a decrease in the provision for allowance for doubtful accounts. Net loss was RMB121.5 million (US$16.8 million) for the three months ended March 31, 2024, compared to RMB185.3 million for the same period in 2023. Cash, cash equivalents, restricted cash and short-term investments were RMB572.7 million (US$79.3 million) as of March 31, 2024. 2024 Financial Guidance We currently expect to achieve breakeven (measured by non-GAAP gross profit minus non-GAAP SG&A) for the full year 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. Corporate structure reorganization The Company moved its PRC onshore headquarter from Beijing to Guangzhou in May 2024. Burning Rock Biotech Limited, our ultimate Cayman Islands holding company, does not have any substantive operations other than directly controlling Guangzhou Burning Rock Biotech Limited, our new wholly foreign owned entity, or WFOE, and indirectly controlling Burning Rock (Beijing) Biotechnology Co., Ltd., the variable interest entity, or VIE, through certain contractual arrangements. The equity change of Beijing Burning Rock Biotech Limited had been completed, and certain contractual agreements had been amended. The chart below sets forth our corporate structure and identifies our principal subsidiaries as of the date of this release: Conference Call Information Burning Rock will host a conference call to discuss the first quarter 2024 financial results at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Hong Kong time) on May 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/BIbdb6210ab73d4bb7b25e3ffbdc206d07. 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/ovj2q2n6. 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 and LSE: BNR), whose mission is to guard life via science, focuses on the application of next generation sequencing (NGS) technology in the field of precision oncology. Its business consists of i) NGS-based therapy selection testing for late-stage cancer patients, and ii) cancer early detection, which has moved beyond proof-of-concept R&D into the clinical validation stage. For more information about Burning Rock, please visit: ir.brbiotech.com. Safe Harbor Statement This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Burning Rock may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Burning Rock’s beliefs and expectations, are forward-looking statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Burning Rock’s control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. All information provided in this press release is as of the date of this press release, and Burning Rock does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. Non-GAAP Measures In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP gross profit and non-GAAP gross margin, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The company defines non-GAAP gross profit as gross profit excluding depreciation and amortization. The company defines non-GAAP gross margin as gross margin excluding depreciation and amortization. The company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The company believe non-GAAP gross profit and non-GAAP gross margin excluding non-cash impact of depreciation and amortization reflect the company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. Contact: IR@brbiotech.com Selected Operating Data As of March 31,2023 June 30,2023 September 30,2023 December 31,2023 March 31,2024In-hospital Channel: Pipeline partner hospitals(1)29 30 29 28 28Contracted partner hospitals(2)49 50 55 59 59Total number of partner hospitals 78 80 84 87 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. Selected Financial Data For the three months endedRevenuesMarch 31,2023 June 30,2023 September 30,2023 December 31,2023 March 31,2024 (RMB in thousands)Central laboratory channel61,804 66,239 53,481 51,288 47,614In-hospital channel51,561 53,835 54,496 28,809 57,387Pharma research and development channel29,151 26,194 19,589 40,988 20,622Total revenues142,516 146,268 127,566 121,085 125,623 For the three months endedGross profit March 31,2023 June 30,2023 September 30,2023 December 31,2023 March 31,2024 (RMB in thousands)Central laboratory channel48,090 51,876 41,487 41,886 37,002In-hospital channel34,409 33,353 35,459 12,910 39,192Pharma research and development channel16,273 15,193 8,974 23,317 9,500Total gross profit98,772 100,422 85,920 78,113 85,694 For the three months endedShare-based compensation expensesMarch 31,2023 June 30,2023 September 30,2023 December 31,2023 March 31,2024 (RMB in thousands)Cost of revenues353 627 680 654 596Research and development expenses13,612 15,301 12,161 12,401 12,287Selling and marketing expenses1,606 3,389 2,848 1,816 508General and administrative expenses62,595 18,502 57,704 56,472 55,990Total share-based compensation expenses78,166 37,819 73,393 71,343 69,381 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 March 31,2024 RMB RMB RMB RMB RMB US$ Revenues142,516 146,268 127,566 121,085 125,623 17,399 Cost of revenues(43,744) (45,846) (41,646) (42,972) (39,929) (5,531)Gross profit98,772 100,422 85,920 78,113 85,694 11,868 Operating expenses: Research and development expenses(94,417) (95,779) (83,701) (73,119) (65,985) (9,139)Selling and marketing expenses(64,774) (70,842) (62,310) (49,785) (46,856) (6,489)General and administrative expenses(128,039) (69,525) (118,724) (121,533) (98,681) (13,667)Total operating expenses(287,230) (236,146) (264,735) (244,437) (211,522) (29,295)Loss from operations (188,458) (135,724) (178,815) (166,324) (125,828) (17,427)Interest income3,144 5,255 4,018 5,539 4,038 559 Other income (expense), net599 (118) (157) 160 434 60 Foreign exchange (loss) gain, net(116) (210) 423 (517) (13) (2)Loss before income tax(184,831) (130,797) (174,531) (161,142) (121,369) (16,810)Income tax expenses(422) (445) (450) (1,071) (180) (25)Net loss(185,253) (131,242) (174,981) (162,213) (121,549) (16,835)Net loss attributable to Burning Rock Biotech Limited’s shareholders(185,253) (131,242) (174,981) (162,213) (121,549) (16,835)Net loss attributable to ordinary shareholders(185,253) (131,242) (174,981) (162,213) (121,549) (16,835)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) (0.16)Class B ordinary shares - basic and diluted(1.81) (1.28) (1.71) (1.58) (1.19) (0.16)Weighted average shares outstanding used in loss per share computation: Class A ordinary shares - basic and diluted85,065,585 85,151,052 85,000,869 85,071,360 85,219,188 85,219,188 Class B ordinary shares - basic and diluted17,324,848 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(5,659) 14,829 (1,955) (3,026) 590 82 Total comprehensive loss(190,912) (116,413) (176,936) (165,239) (120,959) (16,753)Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders(190,912) (116,413) (176,936) (165,239) (120,959) (16,753) Burning Rock Biotech LimitedUnaudited Condensed Consolidated Balance Sheets(In thousands) As of December 31,2023 March 31,2024 March 31,2024 RMB RMB US$ASSETS Current assets: Cash and cash equivalents615,096 572,616 79,306Restricted cash120 58 8Accounts receivable, net126,858 135,360 18,747Contract assets, net22,748 23,063 3,194Inventories, net69,020 63,121 8,742Prepayments and other current assets, net50,254 46,630 6,458Total current assets884,096 840,848 116,455Non-current assets: Equity method investment337 249 34Convertible note receivable5,320 5,320 737Property and equipment, net131,912 114,498 15,858Operating right-of-use assets12,284 19,655 2,722Intangible assets, net964 747 103Other non-current assets5,088 3,609 500Total non-current assets155,905 144,078 19,954TOTAL ASSETS 1,040,001 984,926 136,409 Burning Rock Biotech LimitedUnaudited Condensed Consolidated Balance Sheets (Continued)(in thousands) As of December 31,2023 March 31,2024 March 31,2024 RMB RMB US$LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable18,061 24,630 3,411 Deferred revenue130,537 127,516 17,661 Accrued liabilities and other current liabilities104,935 91,037 12,608 Customer deposits1,197 1,197 166 Current portion of operating lease liabilities8,634 11,026 1,527 Total current liabilities263,364 255,406 35,373 Non-current liabilities: Non-current portion of operating lease liabilities3,690 7,971 1,104 Other non-current liabilities4,537 4,717 651 Total non-current liabilities8,227 12,688 1,755 TOTAL LIABILITIES271,591 268,094 37,128 Shareholders’ equity: Class A ordinary shares116 116 16 Class B ordinary shares21 21 3 Additional paid-in capital4,849,337 4,918,718 681,235 Treasury stock(65,896) (65,896) (9,126)Accumulated deficits(3,853,635) (3,975,184) (550,557)Accumulated other comprehensive loss(161,533) (160,943) (22,290)Total shareholders’ equity768,410 716,832 99,281 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY1,040,001 984,926 136,409 Burning Rock Biotech LimitedUnaudited Condensed Statements of Cash Flows(in thousands) For the three months ended March 31,2023 March 31,2024 March 31,2024 RMB RMB US$Net cash used in operating activities(113,143) (40,209) (5,569)Net cash used in investing activities(4,059) (2,386) (330)Net cash used in financing activities(32) - - Effect of exchange rate on cash, cash equivalents and restricted cash(4,892) 53 7 Net decrease in cash, cash equivalents and restricted cash (122,126) (42,542) (5,892)Cash, cash equivalents and restricted cash at the beginning of period925,268 615,216 85,206 Cash, cash equivalents and restricted cash at the end of period803,142 572,674 79,314 Burning Rock Biotech LimitedReconciliations of GAAP and Non-GAAP Results For the three months ended March 31,2023 June 30,2023 September30, 2023 December 31,2023 March31, 2024 (RMB in thousands)Gross profit: Central laboratory channel48,090 51,876 41,487 41,886 37,002In-hospital channel34,409 33,353 35,459 12,910 39,192Pharma research and development channel16,273 15,193 8,974 23,317 9,500Total gross profit98,772 100,422 85,920 78,113 85,694Add: depreciation and amortization: Central laboratory channel2,567 2,645 2,550 2,414 1,919In-hospital channel2,582 2,637 2,751 2,728 1,524Pharma research and development channel3,974 3,665 3,863 3,808 3,856Total depreciation and amortization included in cost of revenues9,123 8,947 9,164 8,950 7,299Non-GAAP gross profit: Central laboratory channel50,657 54,521 44,037 44,300 38,921In-hospital channel36,991 35,990 38,210 15,638 40,716Pharma research and development channel20,247 18,858 12,837 27,125 13,356Total non-GAAP gross profit107,895 109,369 95,084 87,063 92,993Non-GAAP gross margin: Central laboratory channel82.0% 82.3% 82.3% 86.4% 81.7%In-hospital channel71.7% 66.9% 70.1% 54.3% 70.9%Pharma research and development channel69.5% 72.0% 65.5% 66.2% 64.8%Total non-GAAP gross margin75.7% 74.8% 74.5% 71.9% 74.0% A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/370e7914-309e-48a2-b52f-03fe37ffa17d
GUANGZHOU, China, May 29, 2024 (GLOBE NEWSWIRE) -- 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 March 31, 2024. Recent Business Updates 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. Pharma Services Total value of new contracts during the first quarter of 2024 amounted to RMB218 million, representing a growth over 100% from the same period in 2023. First Quarter 2024 Financial Results Total Revenues were RMB125.6 million (US$17.4 million) for the three months ended March 31, 2024, representing a 11.9% decrease from RMB142.5 million for the same period in 2023, as we transition from central-lab to more in-hospital based testing. Importantly, in-hospital segment continued its double-digit growth. Revenue generated from in-hospital business was RMB57.4 million (US$7.9 million) for the three months ended March 31, 2024, representing a 11.3% increase from RMB51.6 million for the same period in 2023, driven by an increase in sales volume.Revenue generated from central laboratory business was RMB47.6 million (US$6.6 million) for the three months ended March 31, 2024, representing a 23.0% decrease from RMB61.8 million for the same period in 2023, primarily attributable to a decrease in the number of tests, as we continued our transition towards in-hospital testing.Revenue generated from pharma research and development services was RMB20.6 million (US$2.9 million) for the three months ended March 31, 2024, representing a 29.3% decrease from RMB29.2 million for the same period in 2023, primarily attributable to decreased testing services performed for our pharma customers due to timing of lumpy projects. Cost of revenues was RMB39.9 million (US$5.5 million) for the three months ended March 31, 2024, representing an 8.7% decrease from RMB43.7 million for the same period in 2023, primarily due to a decrease in cost of central laboratory business, which was in line with the decrease in revenue generated from this business and partially offset by an increase in sales volume of in-hospital business and a decrease in depreciation expense for all kinds of business. Gross profit was RMB85.7 million (US$11.9 million) for the three months ended March 31, 2024, representing a 13.2% decrease from RMB98.8 million for the same period in 2023. Gross margin was 68.2% for the three months ended March 31, 2024, compared to 69.3% for the same period in 2023. By channel, gross margin of central laboratory business was 77.7% for the three months ended March 31, 2024, compared to 77.8% during the same period in 2023; gross margin of in-hospital business was 68.3% for the three months ended March 31, 2024, compared to 66.7% during the same period in 2023, primarily due to a decrease in amortization; gross margin of pharma research and development services was 46.1% for the three months ended March 31, 2024, compared to 55.8% during the same period of 2023. Non-GAAP gross profit, which excludes depreciation and amortization expenses, was RMB93.0 million (US$12.9 million) for the three months ended March 31, 2024, representing a 13.8% decrease from RMB107.9 million for the same period in 2023. Non-GAAP gross margin was 74.0% for the three months ended March 31, 2024, compared to 75.7% for the same period in 2023. Operating expenses were RMB211.5 million (US$29.3 million) for the three months ended March 31, 2024, representing a 26.4% decrease from RMB287.2 million for the same period in 2023. The decrease was primarily driven by improved operating efficiency. Research and development expenses were RMB66.0 million (US$9.1 million) for the three months ended March 31, 2024, representing a 30.1% decrease from RMB94.4 million for the same period in 2023, primarily due to (i) a decrease in staff cost resulted from the reorganization of our research and development department to improve operating efficiency, and (ii) a decrease in the expenditure for research projects.Selling and marketing expenses were RMB46.9 million (US$6.5 million) for the three months ended March 31, 2024, representing a 27.7% decrease from RMB64.8 million for the same period in 2023, primarily due to (i) a decrease in staff cost resulted from the reorganization of the sales department and improvement in operating efficiency; (ii) a decrease in conference fee; and (iii) a decrease in travel expense.General and administrative expenses were RMB98.7 million (US$13.7 million) for the three months ended March 31, 2024, representing a 22.9% decrease from RMB128.0 million for the same period in 2023, primarily due to (i) a decrease in general and administrative personnel’s staff cost, and (ii) a decrease in amortized expenses for office building; (iii) a decrease in the provision for allowance for doubtful accounts. Net loss was RMB121.5 million (US$16.8 million) for the three months ended March 31, 2024, compared to RMB185.3 million for the same period in 2023. Cash, cash equivalents, restricted cash and short-term investments were RMB572.7 million (US$79.3 million) as of March 31, 2024. 2024 Financial Guidance We currently expect to achieve breakeven (measured by non-GAAP gross profit minus non-GAAP SG&A) for the full year 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. Corporate structure reorganization The Company moved its PRC onshore headquarter from Beijing to Guangzhou in May 2024. Burning Rock Biotech Limited, our ultimate Cayman Islands holding company, does not have any substantive operations other than directly controlling Guangzhou Burning Rock Biotech Limited, our new wholly foreign owned entity, or WFOE, and indirectly controlling Burning Rock (Beijing) Biotechnology Co., Ltd., the variable interest entity, or VIE, through certain contractual arrangements. The equity change of Beijing Burning Rock Biotech Limited had been completed, and certain contractual agreements had been amended. The chart below sets forth our corporate structure and identifies our principal subsidiaries as of the date of this release: Conference Call Information Burning Rock will host a conference call to discuss the first quarter 2024 financial results at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Hong Kong time) on May 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/BIbdb6210ab73d4bb7b25e3ffbdc206d07. 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/ovj2q2n6. 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 and LSE: BNR), whose mission is to guard life via science, focuses on the application of next generation sequencing (NGS) technology in the field of precision oncology. Its business consists of i) NGS-based therapy selection testing for late-stage cancer patients, and ii) cancer early detection, which has moved beyond proof-of-concept R&D into the clinical validation stage. For more information about Burning Rock, please visit: ir.brbiotech.com. Safe Harbor Statement This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “target,” “confident” and similar statements. Burning Rock may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Burning Rock’s beliefs and expectations, are forward-looking statements. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Burning Rock’s control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. All information provided in this press release is as of the date of this press release, and Burning Rock does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law. Non-GAAP Measures In evaluating the business, the Company considers and uses non-GAAP measures, such as non-GAAP gross profit and non-GAAP gross margin, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The company defines non-GAAP gross profit as gross profit excluding depreciation and amortization. The company defines non-GAAP gross margin as gross margin excluding depreciation and amortization. The company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The company believe non-GAAP gross profit and non-GAAP gross margin excluding non-cash impact of depreciation and amortization reflect the company’s ongoing business operations in a manner that allows more meaningful period-to-period comparisons. Contact: IR@brbiotech.com Selected Operating Data As of March 31,2023 June 30,2023 September 30,2023 December 31,2023 March 31,2024In-hospital Channel: Pipeline partner hospitals(1)29 30 29 28 28Contracted partner hospitals(2)49 50 55 59 59Total number of partner hospitals 78 80 84 87 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. Selected Financial Data For the three months endedRevenuesMarch 31,2023 June 30,2023 September 30,2023 December 31,2023 March 31,2024 (RMB in thousands)Central laboratory channel61,804 66,239 53,481 51,288 47,614In-hospital channel51,561 53,835 54,496 28,809 57,387Pharma research and development channel29,151 26,194 19,589 40,988 20,622Total revenues142,516 146,268 127,566 121,085 125,623 For the three months endedGross profit March 31,2023 June 30,2023 September 30,2023 December 31,2023 March 31,2024 (RMB in thousands)Central laboratory channel48,090 51,876 41,487 41,886 37,002In-hospital channel34,409 33,353 35,459 12,910 39,192Pharma research and development channel16,273 15,193 8,974 23,317 9,500Total gross profit98,772 100,422 85,920 78,113 85,694 For the three months endedShare-based compensation expensesMarch 31,2023 June 30,2023 September 30,2023 December 31,2023 March 31,2024 (RMB in thousands)Cost of revenues353 627 680 654 596Research and development expenses13,612 15,301 12,161 12,401 12,287Selling and marketing expenses1,606 3,389 2,848 1,816 508General and administrative expenses62,595 18,502 57,704 56,472 55,990Total share-based compensation expenses78,166 37,819 73,393 71,343 69,381 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 March 31,2024 RMB RMB RMB RMB RMB US$ Revenues142,516 146,268 127,566 121,085 125,623 17,399 Cost of revenues(43,744) (45,846) (41,646) (42,972) (39,929) (5,531)Gross profit98,772 100,422 85,920 78,113 85,694 11,868 Operating expenses: Research and development expenses(94,417) (95,779) (83,701) (73,119) (65,985) (9,139)Selling and marketing expenses(64,774) (70,842) (62,310) (49,785) (46,856) (6,489)General and administrative expenses(128,039) (69,525) (118,724) (121,533) (98,681) (13,667)Total operating expenses(287,230) (236,146) (264,735) (244,437) (211,522) (29,295)Loss from operations (188,458) (135,724) (178,815) (166,324) (125,828) (17,427)Interest income3,144 5,255 4,018 5,539 4,038 559 Other income (expense), net599 (118) (157) 160 434 60 Foreign exchange (loss) gain, net(116) (210) 423 (517) (13) (2)Loss before income tax(184,831) (130,797) (174,531) (161,142) (121,369) (16,810)Income tax expenses(422) (445) (450) (1,071) (180) (25)Net loss(185,253) (131,242) (174,981) (162,213) (121,549) (16,835)Net loss attributable to Burning Rock Biotech Limited’s shareholders(185,253) (131,242) (174,981) (162,213) (121,549) (16,835)Net loss attributable to ordinary shareholders(185,253) (131,242) (174,981) (162,213) (121,549) (16,835)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) (0.16)Class B ordinary shares - basic and diluted(1.81) (1.28) (1.71) (1.58) (1.19) (0.16)Weighted average shares outstanding used in loss per share computation: Class A ordinary shares - basic and diluted85,065,585 85,151,052 85,000,869 85,071,360 85,219,188 85,219,188 Class B ordinary shares - basic and diluted17,324,848 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(5,659) 14,829 (1,955) (3,026) 590 82 Total comprehensive loss(190,912) (116,413) (176,936) (165,239) (120,959) (16,753)Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders(190,912) (116,413) (176,936) (165,239) (120,959) (16,753) Burning Rock Biotech LimitedUnaudited Condensed Consolidated Balance Sheets(In thousands) As of December 31,2023 March 31,2024 March 31,2024 RMB RMB US$ASSETS Current assets: Cash and cash equivalents615,096 572,616 79,306Restricted cash120 58 8Accounts receivable, net126,858 135,360 18,747Contract assets, net22,748 23,063 3,194Inventories, net69,020 63,121 8,742Prepayments and other current assets, net50,254 46,630 6,458Total current assets884,096 840,848 116,455Non-current assets: Equity method investment337 249 34Convertible note receivable5,320 5,320 737Property and equipment, net131,912 114,498 15,858Operating right-of-use assets12,284 19,655 2,722Intangible assets, net964 747 103Other non-current assets5,088 3,609 500Total non-current assets155,905 144,078 19,954TOTAL ASSETS 1,040,001 984,926 136,409 Burning Rock Biotech LimitedUnaudited Condensed Consolidated Balance Sheets (Continued)(in thousands) As of December 31,2023 March 31,2024 March 31,2024 RMB RMB US$LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable18,061 24,630 3,411 Deferred revenue130,537 127,516 17,661 Accrued liabilities and other current liabilities104,935 91,037 12,608 Customer deposits1,197 1,197 166 Current portion of operating lease liabilities8,634 11,026 1,527 Total current liabilities263,364 255,406 35,373 Non-current liabilities: Non-current portion of operating lease liabilities3,690 7,971 1,104 Other non-current liabilities4,537 4,717 651 Total non-current liabilities8,227 12,688 1,755 TOTAL LIABILITIES271,591 268,094 37,128 Shareholders’ equity: Class A ordinary shares116 116 16 Class B ordinary shares21 21 3 Additional paid-in capital4,849,337 4,918,718 681,235 Treasury stock(65,896) (65,896) (9,126)Accumulated deficits(3,853,635) (3,975,184) (550,557)Accumulated other comprehensive loss(161,533) (160,943) (22,290)Total shareholders’ equity768,410 716,832 99,281 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY1,040,001 984,926 136,409 Burning Rock Biotech LimitedUnaudited Condensed Statements of Cash Flows(in thousands) For the three months ended March 31,2023 March 31,2024 March 31,2024 RMB RMB US$Net cash used in operating activities(113,143) (40,209) (5,569)Net cash used in investing activities(4,059) (2,386) (330)Net cash used in financing activities(32) - - Effect of exchange rate on cash, cash equivalents and restricted cash(4,892) 53 7 Net decrease in cash, cash equivalents and restricted cash (122,126) (42,542) (5,892)Cash, cash equivalents and restricted cash at the beginning of period925,268 615,216 85,206 Cash, cash equivalents and restricted cash at the end of period803,142 572,674 79,314 Burning Rock Biotech LimitedReconciliations of GAAP and Non-GAAP Results For the three months ended March 31,2023 June 30,2023 September30, 2023 December 31,2023 March31, 2024 (RMB in thousands)Gross profit: Central laboratory channel48,090 51,876 41,487 41,886 37,002In-hospital channel34,409 33,353 35,459 12,910 39,192Pharma research and development channel16,273 15,193 8,974 23,317 9,500Total gross profit98,772 100,422 85,920 78,113 85,694Add: depreciation and amortization: Central laboratory channel2,567 2,645 2,550 2,414 1,919In-hospital channel2,582 2,637 2,751 2,728 1,524Pharma research and development channel3,974 3,665 3,863 3,808 3,856Total depreciation and amortization included in cost of revenues9,123 8,947 9,164 8,950 7,299Non-GAAP gross profit: Central laboratory channel50,657 54,521 44,037 44,300 38,921In-hospital channel36,991 35,990 38,210 15,638 40,716Pharma research and development channel20,247 18,858 12,837 27,125 13,356Total non-GAAP gross profit107,895 109,369 95,084 87,063 92,993Non-GAAP gross margin: Central laboratory channel82.0% 82.3% 82.3% 86.4% 81.7%In-hospital channel71.7% 66.9% 70.1% 54.3% 70.9%Pharma research and development channel69.5% 72.0% 65.5% 66.2% 64.8%Total non-GAAP gross margin75.7% 74.8% 74.5% 71.9% 74.0% A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/370e7914-309e-48a2-b52f-03fe37ffa17d