Burning Rock Reports Fourth Quarter and Full Year 2023 Financial Results

GUANGZHOU, China, March 28, 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 and the year ended December 31, 2023.

2023 Business Overview and Recent Updates

  • Corporate Updates
    • Completed profitability-driven organizational optimization, execution towards profitability well underway
  • Early Detection  
    • Following the Breakthrough Device Designation granted by the US Food and Drug Administration (FDA) for our OverC™ Multi-Cancer Detection Blood Test (MCDBT) in January 2023, our OverC™ MCDBT also received the Breakthrough Device Designation by China’s National Medical Products Administration (NMPA) in October 2023, making it the only test globally that has received Breakthrough Device Designation from both the FDA and the NMPA.
  • Therapy Selection and Minimal Residual Disease (MRD)
    • Precision oncology diagnostics product supports advancement in late-stage breast cancer treatment, with results published in the New England Journal of Medicine in June 2023. The study, CAPItello-291, sponsored by our pharma client AstraZeneca, is a phase 3 trial that assessed the efficacy and safety of Capivasertib–fulvestrant therapy in advanced breast cancer patients with hormone receptor positive (HR+), human epidermal growth factor receptor 2 negative (HER2-) cancer whose disease has progressed during or after aromatase inhibitor therapy. The study demonstrates that Capivasertib–fulvestrant combination therapy results in significantly longer progression-free survival than treatment with fulvestrant alone.
  • Pharma Services
    • New companion diagnostics (CDx) development for breast and prostatic cancer announced with AstraZeneca in China.
    • Entered into a Master Service Agreement in Oncology Companion Diagnostics (CDx) with Boehringer Ingelheim, focusing on advancing the clinical trials related to Boehringer Ingelheim’s MDM2-p53 antagonist, brigimadlin (BI 907828), and the development of CDx products in China.
    • Total value of new contracts entered into during 2023 amounted to RMB310 million, representing a 24% increase from 2022.

Fourth Quarter 2023 Financial Results

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

  • Revenue generated from central laboratory business was RMB51.3 million (US$7.2 million) for the three months ended December 31, 2023, representing a 28.7% decrease from RMB72.0 million for the same period in 2022, primarily attributable to a decrease in the number of tests, as we continued to focus on our in-hospital business.
  • Revenue generated from in-hospital business was RMB28.8 million (US$4.1 million) for the three months ended December 31, 2023, representing a 32.3% decrease from RMB42.5 million for the same period in 2022, primarily attributable to one-off adjustment with two hospitals. Exclude such two, revenue generated from in-hospital business for the three months ended December 31, 2023 would have remained relatively stable (decreasing by 1%) year-over-year.
  • Revenue generated from pharma research and development services was RMB41.0 million (US$5.8 million) for the three months ended December 31, 2023, representing a 47.8% increase from RMB27.7 million for the same period in 2022, primarily attributable to increased development and testing services performed for our pharma customers.

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

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

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

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

  • Research and development expenses were RMB73.1 million (US$10.3 million) for the three months ended December 31, 2023, representing an 27.5% decrease from RMB100.8 million for the same period in 2022, primarily due to (i) a decrease in the expenditure for detection research, and (ii) a decrease in staff cost resulted from the reorganization of our research and development department to improve operating efficiency.
  • Selling and marketing expenses were RMB49.8 million (US$7.0 million) for the three months ended December 31, 2023, representing a 41.5% decrease from RMB85.2 million for the same period in 2022, primarily due to (i) a decrease in staff cost resulted from the reorganization of our sales department to improve operating efficiency, and (ii) a decrease in marketing and conference fee.
  • General and administrative expenses were RMB121.5 million (US$17.1 million) for the three months ended December 31, 2023, representing a 8.4% decrease from RMB132.7 million for the same period in 2022, primarily due to a decrease in professional service fee.

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

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

Full Year 2023 Financial Results

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

  • Revenue generated from central laboratory business was RMB232.8 million (US$32.8 million) for 2023, representing a 26.0% decrease from RMB314.8 million for 2022, primarily attributable to a decrease in the number of tests, as we continued to focus on our in-hospital business.
  • Revenue generated from in-hospital business was RMB188.7 million (US$26.6 million) for 2023, representing a 7.6% increase from RMB175.3 million for 2022, primarily due to demand from ten new contracted partner hospitals added to the Company’s in-hospital channel in 2023.
  • Revenue generated from pharma research and development services was RMB115.9 million (US$16.3 million) for 2023, representing a 58.4% increase from RMB73.2 million for 2022, primarily attributable to increased development and testing services performed for our pharma customers.

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

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

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

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

  • Research and development expenses were RMB347.0 million (US$48.9 million) for 2023, representing a 17.7% decrease from RMB421.9 million for 2022, primarily due to (i) a decrease in the expenditure for detection research, (ii) a decrease in royalty and license fee, and (iii) a decrease in staff cost resulted from the reorganization of our research and development department to improve operating efficiency.
  • Selling and marketing expenses were RMB247.7 million (US$34.9 million) for 2023, representing a 33.1% decrease from RMB370.3 million for 2022, primarily due to (i) a decrease in staff cost resulted from the reorganization of our sales department to improve operating efficiency, (ii) a decrease in marketing and conference fee; and (iii) a decrease in entertainment fee.
  • General and administrative expenses were RMB437.8 million (US$61.7 million) for 2023, representing a 23.0% decrease from RMB568.3 million for 2022, primarily due to (i) a decrease in professional service fee; (ii) a decrease in allowance for doubtful accounts resulting from accelerated settlement with customers with long aging accounts receivable; and (iii) a decrease in staff cost resulted from the reorganization of our general and administrative department to improve operating efficiency.

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

2024 Financial Guidance

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

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

Conference Call Information

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

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

PRE-REGISTER LINK: https://register.vevent.com/register/BIa8b469b65e8e428e942decdf0c4c6687.

Additionally, a live and archived webcast of the conference call will also be available on the company’s investor relations website at http://ir.brbiotech.com or through link https://edge.media-server.com/mmc/p/hrphgr99.

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

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, 2022
  June
30, 
2022
  September
30, 2022
  December
31, 2022
  March
31, 2023
  June
30, 2023
  September
30, 2023
  December
31, 2023
 
In-hospital Channel:                                
Pipeline partner hospitals(1) 24   25   22   28   29   30   29   28  
Contracted partner hospitals(2) 41   43   47   49   49   50   55   59  
Total number of partner hospitals 65   68   69   77   78   80   84   87  
                                 
(1) Refers to hospitals that are in the process of establishing in-hospital laboratories, laboratory equipment procurement or installation, staff training or pilot testing using the Company’s products.
(2) Refers to hospitals that have entered into contracts to purchase the Company’s products for use on a recurring basis in their respective in-hospital laboratories the Company helped them establish. Kit revenue is generated from contracted hospitals.
 

Selected Financial Data
               
    For the three months ended    
Revenues March
31, 
2022
  June
30, 
2022
  September
30, 2022
  December
31, 2022
  March
31, 2023
  June
30, 2023
  September
30, 2023
  December
31, 2023
 
  (RMB in thousands)
Central laboratory channel 74,211   78,597   89,992   71,970   61,804   66,239   53,481   51,288  
In-hospital channel 48,957   34,177   49,636   42,526   51,561   53,835   54,496   28,809  
Pharma research and development channel 12,356   18,072   15,003   27,741   29,151   26,194   19,589   40,988  
Total revenues 135,524   130,846   154,631   142,237   142,516   146,268   127,566   121,085  
                                 

  For the three months ended
Gross profit March
31, 
2022
  June
30, 
2022
  September
30, 2022
  December
31, 
2022
  March
31, 2023
  June
30, 2023
  September
30, 2023
  December
31, 2023
 
  (RMB in thousands)    
Central laboratory channel 50,574   57,575   69,991   54,507   48,090   51,876   41,487   41,886  
In-hospital channel 33,396   20,012   31,593   26,999   34,409   33,353   35,459   12,910  
Pharma research and development channel 3,610   5,015   7,010   19,757   16,273   15,193   8,974   23,317  
Total gross profit 87,580   82,602   108,594   101,263   98,772   100,422   85,920   78,113  
                                 

  For the three months ended
Share-based compensation expenses March
31, 
2022
  June
30, 
2022
  September
30, 2022
  December
31, 
2022
  March
31, 2023
  June
30, 2023
  September
30, 2023
  December
31, 2023
 
  (RMB in thousands)
Cost of revenues 365   441   481   496   353   627   680   654  
Research and development expenses 12,299   11,923   13,978   14,673   13,612   15,301   12,161   12,401  
Selling and marketing expenses 1,774   2,158   2,346   2,247   1,606   3,389   2,848   1,816  
General and administrative expenses 65,715   62,615   61,041   74,232   62,595   18,502   57,704   56,472  
Total share-based compensation expenses 80,153   77,137   77,846   91,648   78,166   37,819   73,393   71,343  
                                 

Burning Rock Biotech Limited
Unaudited Condensed Statements of Comprehensive Loss
(in thousands, except for number of shares and per share data)
 
  For the three months ended    
  March 31,
2022
  June 30,
2022
  September 30, 2022   December 31,
2022
  March 31, 2023   June 30, 2023   September 30, 2023   December 31, 2023   December 31, 2023  
  RMB RMB RMB RMB RMB RMB RMB RMB US$
Revenues 135,524   130,846   154,631   142,237   142,516   146,268   127,566   121,085   17,054  
Cost of revenues (47,944)   (48,244)   (46,037)   (40,974)   (43,744)   (45,846)   (41,646)   (42,972)   (6,052)  
Gross profit 87,580   82,602   108,594   101,263   98,772   100,422   85,920   78,113   11,002  
Operating expenses:                  
Research and development expenses (119,496)   (92,112)   (109,433)   (100,827)   (94,417)   (95,779)   (83,701)   (73,119)   (10,299)  
Selling and marketing expenses (89,211)   (105,634)   (90,275)   (85,174)   (64,774)   (70,842)   (62,310)   (49,785)   (7,012)  
General and administrative expenses (141,733)   (150,316)   (143,530)   (132,705)   (128,039)   (69,525)   (118,724)   (121,533)   (17,118)  
Total operating expenses (350,440)   (348,062)   (343,238)   (318,706)   (287,230)   (236,146 )   (264,735)   (244,437)   (34,429)  
Loss from operations  (262,860)   (265,460)   (234,644)   (217,443)   (188,458)   (135,724)   (178,815)   (166,324)   (23,427)  
Interest income 1,932   2,656   2,013   2,838   3,144   5,255   4,018   5,539   780  
Other income (expense), net 298   127   (189)   (84)   599   (118)   (157)   160   23  
Foreign exchange (loss) gain, net (777)   624   1,337   365   (116)   (210 423   (517)   (73)  
Loss before income tax (261,388)   (262,053)   (231,483)   (214,324)   (184,831)   (130,797)   (174,531)   (161,142)   (22,697)  
Income tax expenses   (84)     (1,901)   (422)   (445)   (450)   (1,071)   (151)  
Net loss (261,388)   (262,137)   (231,483)   (216,225)   (185,253)   (131,242 )   (174,981)   (162,213)   (22,848)  
Net loss attributable to Burning Rock Biotech Limited’s shareholders (261,388)   (262,137)   (231,483)   (216,225)   (185,253)   (131,242)   (174,981)   (162,213)   (22,848)  
Net loss attributable to ordinary shareholders (261,388)   (262,137)   (231,483)   (216,225)   (185,253)   (131,242)   (174,981)   (162,213)   (22,848)  
Loss per share for class A and class B ordinary shares:                  
Class A ordinary shares – basic and diluted (2.50)   (2.50)   (2.23)   (2.11 (1.81)   (1.28)   (1.71)   (1.58)   (0.22)  
Class B ordinary shares – basic and diluted (2.50)   (2.50)   (2.23)   (2.11 (1.81)   (1.28)   (1.71)   (1.58)   (0.22)  
Weighted average shares outstanding used in loss per share computation:                  
Class A ordinary shares – basic and diluted 87,179,752   87,532,539   86,585,322   85,051,882   85,065,585   85,151,052   85,000,869   85,071,360   85,071,360  
Class B ordinary shares – basic and diluted 17,324,848   17,324,848   17,324,848   17,324,848   17,324,848   17,324,848   17,324,848   17,324,848   17,324,848  
Other comprehensive (loss) income, net of tax of nil:                  
Foreign currency translation adjustments (3,065)   29,715   20,646   (5,950)   (5,659)   14,829   (1,955)   (3,026)   (426)  
Total comprehensive loss (264,453)   (232,422)   (210,837)   (222,175)   (190,912)   (116,413)   (176,936 )   (165,239)   (23,274)  
Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders (264,453)   (232,422)   (210,837)   (222,175)   (190,912)   (116,413)   (176,936)   (165,239)   (23,274)  
                                     

Burning Rock Biotech Limited
Unaudited Condensed Statements of Comprehensive Loss
(in thousands, except for number of shares and per share data)
   
  For the year ended
  December 31,
2022
  December 31,
2023
  December 31,
2023
 
  RMB RMB US$
Revenues 563,238   537,435   75,696  
Cost of revenues (183,199)   (174,208)   (24,536)  
Gross profit 380,039   363,227   51,160  
Operating expenses:      
Research and development expenses (421,868)   (347,016)   (48,876)  
Selling and marketing expenses (370,294)   (247,711)   (34,889)  
General and administrative expenses (568,284)   (437,821)   (61,666)  
Total operating expenses (1,360,446)   (1,032,548)   (145,431)  
Loss from operations  (980,407)   (669,321)   (94,271)  
Interest income 9,356   17,956   2,529  
Interest expenses 102      
Other income, net 152   484   68  
Foreign exchange gain (loss), net 1,549   (420)   (59)  
Loss before income tax (969,248)   (651,301)   (91,733)  
Income tax expenses (1,985)   (2,388)   (336)  
Net loss (971,233)   (653,689)   (92,069)  
Net loss attributable to Burning Rock Biotech Limited’s shareholders (971,233)   (653,689)   (92,069)  
Net loss attributable to ordinary shareholders (971,233)   (653,689)   (92,069)  
Loss per share for class A and class B ordinary shares:      
Class A ordinary shares – basic and diluted (9.35)   (6.38)   (0.90)  
Class B ordinary shares – basic and diluted (9.35)   (6.38)   (0.90)  
Weighted average shares outstanding used in loss per share computation:      
Class A ordinary shares – basic and diluted 86,584,100   85,071,691   85,071,691  
Class B ordinary shares – basic and diluted 17,324,848   17,324,848   17,324,848  
Other comprehensive income, net of tax of nil:      
Foreign currency translation adjustments 41,346   4,189   590  
Total comprehensive loss (929,887)   (649,500)   (91,479)  
Total comprehensive loss attributable to Burning Rock Biotech Limited’s shareholders (929,887)   (649,500)   (91,479)  
             

Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
   
  As of
  December 31,
2022
  December 31,
2023
  December 31,
2023
 
  RMB   RMB   US$  
ASSETS            
Current assets:            
Cash and cash equivalents 905,451   615,096   86,634  
Restricted cash 19,817   120   17  
Accounts receivable, net 109,954   126,858   17,868  
Contract assets, net 41,757   22,748   3,204  
Inventories, net 130,321   69,020   9,721  
Prepayments and other current assets 51,462   50,254   7,078  
Total current assets 1,258,762   884,096   124,522  
Non-current assets:            
Equity method investment 690   337   47  
Convertible note receivable 5,105   5,320   749  
Property and equipment, net 251,829   131,912   18,579  
Operating right-of-use assets 48,205   12,284   1,730  
Intangible assets, net 1,986   964   136  
Other non-current assets 20,890   5,088   717  
Total non-current assets 328,705   155,905   21,958  
TOTAL ASSETS 1,587,467   1,040,001   146,480  
             

Burning Rock Biotech Limited
Unaudited Condensed Consolidated Balance Sheets (Continued)
(in thousands)
  As of
  December 31,
2022
  December 31,
2023
  December 31,
2023
 
  RMB RMB US$
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Current liabilities:      
Accounts payable 50,947   18,061   2,544  
Deferred revenue 147,633   130,537   18,386  
Accrued liabilities and other current liabilities 173,832   104,935   14,780  
Customer deposits 1,803   1,197   169  
Current portion of operating lease liabilities 37,236   8,634   1,216  
Total current liabilities 411,451   263,364   37,095  
Non-current liabilities:      
Non-current portion of operating lease liabilities 13,551   3,690   520  
Other non-current liabilities 4,124   4,537   636  
Total non-current liabilities 17,675   8,227   1,156  
TOTAL LIABILITIES 429,126   271,591   38,251  

Shareholders’ equity:

     
Class A ordinary shares 117   116   16  
Class B ordinary shares 21   21   3  
Additional paid-in capital 4,582,790   4,849,337   683,015  
Treasury stock (58,919)   (65,896)   (9,281)  
Accumulated deficits (3,199,946)   (3,853,635)   (542,773)  
Accumulated other comprehensive loss (165,722)   (161,533)   (22,751)  
Total shareholders’ equity 1,158,341   768,410   108,229  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,587,467   1,040,001   146,480  
             

Burning Rock Biotech Limited
Unaudited Condensed Statements of Cash Flows
(in thousands)
   
  For the three months ended
  December 31,
2022
  December 31,
2023
  December 31,
2023
 
  RMB RMB US$
Net cash used in operating activities (67,707)   (16,019)   (2,256)  
Net cash used in investing activities (5,033)   (328)   (46)  
Net cash used in financing activities (10,074)   (1,909)   (269)  
Effect of exchange rate on cash, cash equivalents and restricted cash (5,924)   (3,277)   (462)  
Net decrease in cash, cash equivalents and restricted cash (88,738)   (21,533)   (3,033)  
Cash, cash equivalents and restricted cash at the beginning of period 1,014,006   636,749   89,684  
Cash, cash equivalents and restricted cash at the end of period 925,268   615,216   86,651  

  For the year ended
  December 31, 2022 December 31, 2023 December 31, 2023
  RMB RMB US$
Net cash used in operating activities (456,808 ) (255,783 ) (36,026 )
Net cash used in investing activities (7,463 ) (9,300 ) (1,310 )
Net cash used in financing activities (86,238 ) (48,832 ) (6,878 )
Effect of exchange rate on cash, cash equivalents and restricted cash 36,665   3,863   544  
Net decrease in cash, cash equivalents and restricted cash (513,844 ) (310,052 ) (43,670 )
Cash, cash equivalents and restricted cash at the beginning of period 1,439,112   925,268   130,321  
Cash, cash equivalents and restricted cash at the end of period 925,268   615,216   86,651  
             

Burning Rock Biotech Limited
Reconciliations of GAAP and Non-GAAP Results
 
  For the three months ended
  March 31,
2022
  June 30,
2022
  September 30, 2022   December 31,
2022
  March 31,
2023
  June 30, 2023   September 30, 2023   December 31, 2023  
    (RMB in thousands)  
Gross profit:

     
Central laboratory channel 50,574   57,575   69,991   54,507   48,090   51,876   41,487   41,886  
In-hospital channel 33,396   20,012   31,593   26,999   34,409   33,353   35,459   12,910  
Pharma research and development channel 3,610   5,015   7,010   19,757   16,273   15,193   8,974   23,317  
Total gross profit

87,580   82,602   108,594   101,263   98,772   100,422   85,920   78,113  
Add: depreciation and amortization:                
Central laboratory channel 2,553   2,545   3,138   3,609   2,567   2,645   2,550   2,414  
In-hospital channel 93   1,428   2,479   2,449   2,582   2,637   2,751   2,728  
Pharma research and development channel 2,493   4,327   2,805   3,065   3,974   3,665   3,863   3,808  
Total depreciation and amortization included in cost of revenues

5,139   8,300   8,422   9,123   9,123   8,947   9,164   8,950  
Non-GAAP gross profit:                
Central laboratory channel 53,127   60,120   73,129   58,116   50,657   54,521   44,037   44,300  
In-hospital channel 33,489   21,440   34,072   29,448   36,991   35,990   38,210   15,638  
Pharma research and development channel 6,103   9,342   9,815   22,822   20,247   18,858   12,837   27,125  
Total non-GAAP gross profit 92,719   90,902   117,016   110,386   107,895   109,369   95,084   87,063  
Non-GAAP gross margin:                
Central laboratory channel 71.6%   76.5%   81.3%   80.8%   82.0%   82.3%   82.3%   86.4%  
In-hospital channel 68.4%   62.7%   68.6%   69.2%   71.7%   66.9%   70.1%   54.3%  
Pharma research and development channel 49.4%   51.7%   65.4%   82.3%   69.5%   72.0%   65.5%   66.2%  
Total non-GAAP gross margin 68.4%   69.5%   75.7%   77.6%   75.7%   74.8%   74.5%   71.9%  
                                 

Burning Rock Biotech Limited
Reconciliations of GAAP and Non-GAAP Results
 
  For the year ended
  December 31,
2022
    December 31,
2023
 
  (RMB in thousands)
RMB
Gross profit:

   
Central laboratory channel 232,647     183,339  
In-hospital channel 112,000     116,131  
Pharma research and development channel 35,392     63,757  
Total gross profit

380,039     363,227  
Add: depreciation and amortization:    
Central laboratory channel 11,845     10,176  
In-hospital channel 6,449     10,699  
Pharma research and development channel 12,690     15,310  
Total depreciation and amortization included in cost of revenues

30,984     36,185  
Non-GAAP gross profit:    
Central laboratory channel 244,492     193,515  
In-hospital channel 118,449     126,830  
Pharma research and development channel 48,082     79,067  
Total non-GAAP gross profit 411,023     399,412  
Non-GAAP gross margin:    
Central laboratory channel 77.7 %   83.1 %
In-hospital channel 67.6 %   67.2 %
Pharma research and development channel 65.7 %   68.2 %
Total non-GAAP gross margin 73.0 %   74.3 %
           

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