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 April 2023 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 an ...

PART I [ITEM 3. KEY INFORMATION](index=7&type=section&id=ITEM%203.%20KEY%20INFORMATION) The company's operations face principal risks from PRC regulations, its VIE structure, and U.S. compliance requirements - The company's operations are subject to significant PRC legal and operational risks, including potential government intervention, evolving data security laws, and new regulations on overseas listings, which could **materially impact business and security value**[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - Burning Rock operates through a **VIE structure** to comply with PRC restrictions on foreign investment; this structure relies on contractual arrangements that may not be as effective as direct ownership and face risks of being deemed **non-compliant** by PRC authorities[28](index=28&type=chunk)[135](index=135&type=chunk)[136](index=136&type=chunk) - The company was identified as a **"Commission-Identified Issuer"** under the HFCA Act in May 2022 but **does not expect to be identified** as such after filing this annual report, following renewed PCAOB inspection access in China[32](index=32&type=chunk)[33](index=33&type=chunk)[231](index=231&type=chunk) VIE and Subsidiaries - Results of Operations (RMB in thousands) | Year Ended December 31, | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | **Revenues** | 432,142 | 526,071 | 557,667 | | **Net loss** | 244,765 | 508,803 | 605,934 | VIE and Subsidiaries - Financial Position (RMB in thousands) | As of December 31, | 2021 | 2022 | | :--- | :--- | :--- | | **Total current assets** | 556,212 | 917,663 | | **Total assets** | 659,444 | 1,016,259 | | **Total liabilities** | 1,215,466 | 1,897,909 | | **Total shareholders' (deficit) equity** | (556,022) | (881,650) | VIE and Subsidiaries - Cash Flows (RMB in thousands) | Year Ended December 31, | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | **Net cash from/(used in) operating activities** | 158,563 | (257,506) | (139,381) | | **Net cash used in investing activities** | (9,795) | (11,265) | (37,088) | | **Net cash (used in)/from financing activities** | (30,880) | 304,623 | 377,630 | [ITEM 4. INFORMATION ON THE COMPANY](index=56&type=section&id=ITEM%204.%20INFORMATION%20ON%20THE%20COMPANY) Burning Rock is a leading NGS-based cancer therapy selection provider in China with a dual commercial model and a VIE structure [A. History and Development of the Company](index=56&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Founded in 2014, the company established a VIE structure, went public on NASDAQ in 2020, and listed on the LSE in 2022 - Commenced operations in 2014 through a **VIE structure** to facilitate foreign investment[287](index=287&type=chunk) - Completed its IPO on NASDAQ in June 2020, raising net proceeds of **US$234.9 million**, and concurrently raised **US$25 million** in a private placement[288](index=288&type=chunk) - Listed on the London Stock Exchange in November 2022 and completed a **US$10 million share repurchase program**[289](index=289&type=chunk) [B. Business Overview](index=57&type=section&id=B.%20Business%20Overview) The company leads China's NGS-based cancer therapy selection market through a dual central-lab and in-hospital model - The company operates a dual commercial model: a central laboratory that has served over **6,004 physicians from 802 hospitals**, and an in-hospital model with **77 partner hospitals** as of year-end 2022[295](index=295&type=chunk)[366](index=366&type=chunk) - Key proprietary technologies include **HS library preparation** for low-quality samples, **UMI technology** for liquid biopsy sensitivity, and targeted DNA methylation-based technologies (**brELSA™ and brMERMAID™**) for early cancer detection[300](index=300&type=chunk)[303](index=303&type=chunk)[311](index=311&type=chunk) - The early detection product, **OverC™ Multi-Cancer Detection Blood Test**, was granted **Breakthrough Device Designation by the FDA** in January 2023 for detecting five cancer types in average-risk adults[294](index=294&type=chunk)[342](index=342&type=chunk) Central Laboratory Model - Key Operating Data | Year Ended December 31, | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | **Number of patients tested** | 25,262 | 28,199 | 27,353 | | **Number of ordering physicians** | 1,318 | 1,105 | 949 | | **Number of ordering hospitals** | 312 | 339 | 272 | In-Hospital Model - Cumulative Partner Hospitals | As of December 31, | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | **Contracted partner hospitals** | 29 | 41 | 49 | | **Total number of partner hospitals** | 52 | 64 | 77 | [C. Organizational Structure](index=88&type=section&id=C.%20Organizational%20Structure) A VIE structure enables operations by navigating PRC restrictions on foreign investment in genomic diagnosis technology - The **VIE structure** is necessary because foreign ownership is prohibited in businesses involving the development and application of genomic diagnosis and treatment technology in China[466](index=466&type=chunk) - Key contractual arrangements that provide control include: **Exclusive Business Cooperation Agreement**, **Exclusive Option Agreement**, **Equity Interest Pledge Agreement**, and **Power of Attorney**[467](index=467&type=chunk)[469](index=469&type=chunk)[473](index=473&type=chunk)[474](index=474&type=chunk) [ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS](index=91&type=section&id=ITEM%205.%20OPERATING%20AND%20FINANCIAL%20REVIEW%20AND%20PROSPECTS) Revenue grew 10.9% in 2022, driven by in-hospital and pharma services, though net loss widened due to R&D investments [A. Operating Results](index=91&type=section&id=A.%20Operating%20Results) Revenues grew 10.9% in 2022, driven by in-hospital and pharma services, while gross margin declined and net loss increased Consolidated Results of Operations (RMB in thousands) | Year Ended December 31, | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | **Total revenues** | 429,903 | 507,862 | 563,238 | | **Gross profit** | 313,922 | 364,146 | 380,039 | | **Gross Margin** | 73.1% | 71.7% | 67.5% | | **Loss from operations** | (412,405) | (797,064) | (980,407) | | **Net loss** | (407,235) | (796,697) | (971,233) | Revenue by Segment (RMB in thousands) | Year Ended December 31, 2022 | Revenue | % of Total | | :--- | :--- | :--- | | **Central laboratory business** | 314,770 | 55.9% | | **In-hospital business** | 175,296 | 31.1% | | **Pharma research and development services** | 73,172 | 13.0% | | **Total** | **563,238** | **100.0%** | - Revenue growth in 2022 was driven by a **6.2% increase** in in-hospital business and a **212.8% increase** in pharma services, while central laboratory revenue **decreased by 1.4%**[541](index=541&type=chunk) - **Net loss for 2022 increased by 21.9% to RMB 971.2 million**, primarily due to higher operating expenses for R&D, sales, and marketing[551](index=551&type=chunk) [B. Liquidity and Capital Resources](index=106&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity with RMB 905.5 million in cash, primarily from its 2020 IPO and operations - As of December 31, 2022, the company had cash and cash equivalents of **RMB 905.5 million (US$131.3 million)**[562](index=562&type=chunk) Consolidated Cash Flow Summary (RMB in thousands) | Year Ended December 31, | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | **Net cash used in operating activities** | (73,543) | (477,886) | (456,808) | | **Net cash (used in)/from investing activities** | (109,312) | 81,697 | (7,463) | | **Net cash from/(used in) financing activities** | 2,165,719 | (52,899) | (86,239) | - **Capital expenditures were RMB 70.5 million (US$10.2 million) in 2022**, a decrease from RMB 206.9 million in 2021[576](index=576&type=chunk) [ITEM 6. DIRECTORS, SENIOR MANANGEMENT AND EMPLOYEES](index=110&type=section&id=ITEM%206.%20DIRECTORS%2C%20SENIOR%20MANANGEMENT%20AND%20EMPLOYEES) Company governance is characterized by a dual-class share structure granting the founder majority voting power - The company's founder, chairman, and CEO, Mr. Yusheng Han, beneficially owns shares representing **54.9% of the aggregate voting power** due to the dual-class share structure[636](index=636&type=chunk)[637](index=637&type=chunk) - The company implemented a **2022 Long-term Equity Incentive Plan**, authorizing up to 11,775,525 Class A ordinary shares with vesting contingent on achieving market valuation targets of **US$2 billion, US$4 billion, and US$10 billion**[606](index=606&type=chunk)[610](index=610&type=chunk)[611](index=611&type=chunk) - Total cash compensation paid to directors and executive officers in 2022 was approximately **RMB 7.2 million (US$1.0 million)**[602](index=602&type=chunk) - The total number of employees **decreased from 1,394 at the end of 2021 to 1,138 at the end of 2022**, with Sales & Marketing being the largest functional group (35.9%)[632](index=632&type=chunk)[633](index=633&type=chunk) [ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](index=119&type=section&id=ITEM%207.%20MAJOR%20SHAREHOLDERS%20AND%20RELATED%20PARTY%20TRANSACTIONS) Key related party transactions involve the essential contractual arrangements with the VIE for China operations - The most significant related party transactions are the **contractual arrangements with the VIE** and its shareholders, which are essential for conducting business in China[641](index=641&type=chunk) - The company has granted **demand, piggyback, and Form F-3 registration rights** to its former preferred shareholders, enabling them to have their shares registered for public sale[642](index=642&type=chunk)[643](index=643&type=chunk)[645](index=645&type=chunk) [ITEM 8. FINANCIAL INFORMATION](index=120&type=section&id=ITEM%208.%20FINANCIAL%20INFORMATION) The company reports no material legal proceedings and plans to retain earnings, forgoing dividends for business expansion - The company is **not a party to any material legal or administrative proceedings**[651](index=651&type=chunk) - The company does not have any present plan to pay cash dividends and intends to **retain future earnings** to operate and expand the business[652](index=652&type=chunk) [ITEM 10. ADDITIONAL INFORMATION](index=121&type=section&id=ITEM%2010.%20ADDITIONAL%20INFORMATION) The corporate structure includes dual-class shares, with significant tax considerations and PFIC risk for U.S. shareholders - The company has a **dual-class share structure** where Class A ordinary shares have one vote per share, while Class B ordinary shares have **six votes per share** and are convertible into Class A shares[661](index=661&type=chunk) - There is a significant risk that the company might be treated as a **Passive Foreign Investment Company (PFIC)** for the current taxable year, which could result in **adverse U.S. federal income tax consequences** for U.S. holders[717](index=717&type=chunk)[719](index=719&type=chunk) - If the company is deemed a **PRC resident enterprise**, it could be subject to a **25% tax on its worldwide income**, and dividends paid to non-PRC shareholders may be subject to a **10% withholding tax**[707](index=707&type=chunk)[710](index=710&type=chunk) [ITEM 11. QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK](index=136&type=section&id=ITEM%2011.%20QUALITATIVE%20AND%20QUANTITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Primary market risks include foreign currency exchange fluctuations and credit risk from PRC-based cash deposits - The company's primary market risk is **foreign currency exchange risk**, as most revenues and costs are denominated in RMB while a portion of cash is held in USD[756](index=756&type=chunk) - **Credit risk** is concentrated with cash and cash equivalents, with **89% held at major financial institutions in the PRC** as of December 31, 2022[753](index=753&type=chunk) - The company is **not exposed to significant interest rate risk** as it had no outstanding borrowings as of December 31, 2022[758](index=758&type=chunk) [ITEM 15. CONTROLS AND PROCEDURES](index=139&type=section&id=ITEM%2015.%20CONTROLS%20AND%20PROCEDURES) Management and the independent auditor confirmed the effectiveness of disclosure controls and internal financial reporting controls - Management concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2022[773](index=773&type=chunk) - Based on the COSO framework, management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2022[775](index=775&type=chunk) - The independent registered public accounting firm issued an **unqualified attestation report** on the effectiveness of the company's internal control over financial reporting as of December 31, 2022[777](index=777&type=chunk) - The company completed a share repurchase program, buying back **3,023,138 Class A ordinary shares** in the form of ADSs for a total of **US$10 million**[785](index=785&type=chunk) PART III [ITEM 17. FINANCIAL STATEMENTS](index=142&type=section&id=ITEM%2017.%20FINANCIAL%20STATEMENTS) The report includes audited consolidated financial statements with an unqualified opinion from the independent auditor Consolidated Balance Sheet Data (RMB in thousands) | As of December 31, | 2021 | 2022 | | :--- | :--- | :--- | | **Cash and cash equivalents** | 1,431,317 | 905,451 | | **Total Assets** | 2,278,587 | 1,587,467 | | **Total Liabilities** | 433,276 | 429,126 | | **Total Shareholders' Equity** | 1,845,311 | 1,158,341 | Consolidated Statement of Comprehensive Loss Data (RMB in thousands) | For the Year Ended December 31, | 2020 | 2021 | 2022 | | :--- | :--- | :--- | :--- | | **Total revenues** | 429,903 | 507,862 | 563,238 | | **Gross profit** | 313,922 | 364,146 | 380,039 | | **Loss from operations** | (412,405) | (797,064) | (980,407) | | **Net loss** | (407,235) | (796,697) | (971,233) | | **Loss per share (basic and diluted)** | (6.88) | (7.65) | (9.35) | - The independent auditor, Ernst & Young Hua Ming LLP, issued an **unqualified opinion** on the consolidated financial statements and the company's internal control over financial reporting as of December 31, 2022[801](index=801&type=chunk)[802](index=802&type=chunk) - The auditor's report highlights a **critical audit matter related to revenue recognition** for the in-hospital business, specifically the complexity in determining the standalone selling price for bundled reagent kits[809](index=809&type=chunk)

Burning Rock Biotech Limited 4Q2022 results Nasdaq and LSE: BNR 28 Mar 2023 Disclaimer This presentation has been prepared by Burning Rock Biotech Limited (the "Company") solely for information purpose and has not been independently verified. No representations, warranties or undertakings, express or implied, are made by the Company or any of its affiliates, advisers, or representatives as to, and no reliance should be placed upon, the accuracy, fairness, completeness or correctness of the information or op ...

Financial Data and Key Metrics Changes - The company achieved an 11% year-on-year revenue growth in 2022, which is considered on the high end of growth rates in the precision oncology testing industry [6][24][30] - The fourth quarter of 2022 ended with a revenue drop of only 3% year-over-year, which was better than the previously anticipated decline [23][24] - Adjusted gross profit grew by 12% in 2022, excluding noncash depreciation and amortization [26] Business Line Data and Key Metrics Changes - Therapy selection saw a 13% volume growth despite COVID challenges, driven by the in-hospital channel [7] - The MRD segment experienced a 43% increase in new contract value, reaching RMB 263 million in 2022, with over 200% revenue growth due to strong backlog execution [8] - The Pharma Service segment maintained triple-digit growth rates throughout 2022, benefiting from a strong product portfolio and regulatory approval capabilities [25] Market Data and Key Metrics Changes - The company completed a listing on the London Stock Exchange, providing an alternative venue for trading shares in case of a delisting scenario on NASDAQ [6] - The company reported resilience during COVID lockdowns, with testing operations largely unaffected, particularly in Guangzhou where the lab is located [24][29] Company Strategy and Development Direction - The primary goal for 2023 is to achieve profitability, aiming for breakeven excluding R&D expenses during a quarter [10][30] - The company plans to focus R&D spending on multi-cancer detection (MCD) while improving sales productivity in therapy selection and launching personalized MRD in top hospitals [11][12] - The company aims to maintain its leading position in MCD as the number one player in China and a top player globally [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential of the MRD segment, viewing it as a multi-year growth runway [25][31] - The company is focused on reducing its burn rate and improving operational efficiency, with a cash balance of approximately RMB 1 billion, providing a runway for three years without the need for immediate capital raises [31] Other Important Information - The company optimized its overall headcount by 25% while still delivering strong growth in non-COVID quarters [6] - The company received FDA breakthrough device designation for its MRD product, which is a significant regulatory achievement [14] Q&A Session Summary Question: Regarding the 2023 revenue growth target of 20%, how much will come from existing therapy selection versus MRD and early detection? - Management indicated that therapy selection, including tissue-based and liquid-based, will remain the main driver of growth, with MRD contributing positively as in-hospital installations are completed [35] Question: What are the key commercial milestones for MRD and early detection, and how will ROI be assessed for these investments? - Management noted that around 40 hospitals have been contracted for multi-cancer early detection, with ongoing marketing efforts to educate doctors on the product [36]

Exhibit 99.1 Burning Rock Reports Fourth Quarter and Full Year 2022 Financial Results GUANGZHOU, China, March 28, 2023—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, 2022. 2022 Business Overview and Recent Updates • Corporate • Listed on the Main Market of the Lo ...

Financial Data and Key Metrics Changes - The company recorded a 22% year-on-year revenue growth in Q3 and a strong rebound of 36% quarter-on-quarter [6] - Revenue grew 19% year-on-year in Q3, outperforming peers in the PCR space, which saw a 16% decline [17] - The company expects a revised full-year growth of 5%, down from the previously anticipated 17% due to recent COVID disruptions [24][22] Business Line Data and Key Metrics Changes - The biopharma segment revenue grew triple digits year-on-year to RMB 15 million, with a backlog increase of 38% year-on-year to RMB 198 million [7] - The in-hospital model volume grew 24% year-on-year, indicating a recovery in the hospital channel [17] - The MRD product volume more than doubled in Q3 compared to Q2, reaching 700 tests [6] Market Data and Key Metrics Changes - The company faced temporary disruptions in Chengdu and other cities due to COVID, but major markets remained stable [16] - The company noted that Guangzhou, a significant market, has seen persistent high case numbers affecting business volumes [23] Company Strategy and Development Direction - The company aims to focus on operating efficiency moving forward, with expectations of significantly reduced cash outflows in 2023 [8][21] - The management highlighted the importance of the in-hospital model for future growth, especially for MRD tests [33] - The company is transitioning towards a more targeted approach in its COVID response strategy, which is expected to facilitate future growth [24] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the future, noting that the absolute number of COVID cases is likely to persist at high levels, impacting business volumes [24] - The management emphasized the importance of the PROMISE study as a successful proof of concept for their 9-cancer test, which will inform future product development [15][29] Other Important Information - The company recently listed on the London Stock Exchange to enhance its capital market position [6] - A management change was announced, with the COO transitioning to a Chief Science Officer role to focus on product development and regulatory matters [10] Q&A Session Summary Question: Impact of revised guidance on segments - Management indicated that Guangzhou's business remains intact, with less impact on the pharma segment, while the multi-cancer early detection segment faced challenges in Chongqing [28] Question: Key readouts or catalysts after PROMISE study - The management discussed ongoing internal discussions regarding product development strategy following the PROMISE study results, with strong confidence in upcoming studies [29][30] Question: MRD monitoring volumes growth expectations - Management expects continued growth in MRD volumes, particularly as the in-hospital model becomes more established [33] Question: Usage of MRD test in BeiGene collaboration - The collaboration with BeiGene is strategic, focusing on observational studies, with potential future applications in patient treatment strategies [36] Question: Drivers of biopharma contract growth - The revenue is primarily driven by Companion Diagnostics, with increasing interest from multinational companies in MRD investigations [38]

Burning Rock Biotech Limited (NASDAQ:BNR) Q2 2022 Earnings Conference Call August 31, 2022 8:30 AM ET Company Participants Yusheng Han - Chief Executive Officer Shannon Chuai - Chief Operating Officer Leo Li - Chief Financial Officer Conference Call Participants Stephanie - Cowen Operator Good day and thank you for standing by. Welcome to the Burning Rock 2022 Q2 earnings conference call and webcast. At this time, all participants are in listen-only mode. After the speakers’ presentation, there will be a qu ...

[Recent Business Updates](index=1&type=section&id=Recent%20Business%20Updates) Burning Rock's Q2 2022 business updates show mixed performance, with therapy selection and MRD growth in some regions despite COVID-19, new products boosting central lab revenues, progressing early detection studies, and significant Pharma Services revenue growth and contract backlog build-up [Therapy Selection and Minimal Residual Disease (MRD)](index=1&type=section&id=Therapy%20Selection%20and%20Minimal%20Residual%20Disease%20%28MRD%29) In-hospital and MRD channels are driving growth, though patient volumes were negatively impacted by COVID-19 restrictions, with new products contributing to central lab revenues - In-hospital and MRD are driving growth uplift, but patient volumes were negatively impacted by **Covid-related restrictions**[2](index=2&type=chunk) - For the in-hospital channel, other regions combined grew over **60% year-over-year** in Q2 2022 in testing volume, despite severe Covid-related impact in Shanghai and Beijing[3](index=3&type=chunk) - **New product sales** contributed **7%** of central laboratory segmental revenues in Q2 2022[3](index=3&type=chunk) [Early Detection](index=1&type=section&id=Early%20Detection) The PROMISE study for a 9-cancer test has completed, with results due at ESMO 2022, and China's first multi-cancer prospective interventional study (PREVENT) has launched - The **PROMISE study** (2,035 participants) for a 9-cancer test is completed, with results to be presented at ESMO Congress 2022 in September[3](index=3&type=chunk) - The **PREVENT study**, China's first multi-cancer prospective interventional study involving **12,500 participants**, launched in Q2 2022[3](index=3&type=chunk) [Pharma Services](index=1&type=section&id=Pharma%20Services) Pharma Services continued strong revenue growth, achieving **166.6% year-on-year increase** in Q2 2022, with a rapidly building contract backlog of **RMB158 million** in new contracts - Pharma Services achieved **166.6% revenue growth year-on-year** in Q2 2022[3](index=3&type=chunk) - The pharma service contract backlog is rapidly building, with **new contracts totaling RMB158 million** from January to July 2022, a **49% increase** from the prior year period[3](index=3&type=chunk) [Second Quarter 2022 Financial Results Overview](index=1&type=section&id=Second%20Quarter%202022%20Financial%20Results%20Overview) Burning Rock reported a **2.8% increase** in total revenues to **RMB130.8 million** for Q2 2022, driven by pharma services, offsetting declines in central laboratory and in-hospital businesses due to COVID-19, resulting in an increased net loss of **RMB262.1 million** [Revenues Breakdown](index=1&type=section&id=Revenues%20Breakdown) Total revenues increased by **2.8% year-over-year** to **RMB130.8 million** in Q2 2022, with pharma R&D revenue growing significantly by **166.6%**, while central laboratory and in-hospital revenues saw declines Table: Revenues by Segment (RMB million) | Segment | Q2 2022 Revenue (RMB million) | Q2 2021 Revenue (RMB million) | YoY Change | | :------ | :---------------------------- | :---------------------------- | :--------- | | Total | 130.8 | 127.3 | +2.8% | | Central Laboratory | 78.6 | 80.0 | -1.8% | | In-hospital | 34.2 | 40.5 | -15.6% | | Pharma R&D | 18.1 | 6.8 | +166.6% | - **Central laboratory revenues** increased by **5.9% sequentially** compared to Q1 2022, driven by new product launches[4](index=4&type=chunk) - The **in-hospital revenue decline** was primarily due to severe declines in testing volume in Shanghai from Covid-19 lockdown, and to a lesser extent, declines in Beijing[4](index=4&type=chunk) [Cost of Revenues and Gross Profit](index=1&type=section&id=Cost%20of%20Revenues%20and%20Gross%20Profit) Gross profit decreased by **8.5%** to **RMB82.6 million** in Q2 2022, with gross margin falling to **63.1%**, primarily due to increased depreciation and inventory write-downs, while non-GAAP gross profit remained stable Table: Gross Profit Metrics (RMB million) | Metric | Q2 2022 (RMB million) | Q2 2021 (RMB million) | YoY Change | | :----- | :-------------------- | :-------------------- | :--------- | | Cost of Revenues | 48.2 | 37.0 | +30.2% | | Gross Profit | 82.6 | 90.2 | -8.5% | | Gross Margin | 63.1% | 70.9% | -7.8 ppts | - The increase in **cost of revenues** and decrease in **gross margin** were primarily due to increased depreciation related to the new laboratory and inventory write-downs[5](index=5&type=chunk) Table: Non-GAAP Gross Profit Metrics (RMB million) | Metric | Q2 2022 (RMB million) | Q2 2021 (RMB million) | YoY Change | | :----- | :-------------------- | :-------------------- | :--------- | | Non-GAAP Gross Profit | 90.9 | 90.7 | +0.3% | | Non-GAAP Gross Margin | 69.5% | 71.2% | -1.7 ppts | [Operating Expenses](index=2&type=section&id=Operating%20Expenses) Total operating expenses increased by **19.1%** to **RMB348.1 million** in Q2 2022, driven by a significant rise in selling and marketing expenses, while R&D expenses decreased Table: Operating Expenses Breakdown (RMB million) | Expense Category | Q2 2022 (RMB million) | Q2 2021 (RMB million) | YoY Change | | :--------------- | :-------------------- | :-------------------- | :--------- | | Total Operating Expenses | 348.1 | 292.3 | +19.1% | | R&D Expenses | 92.1 | 108.1 | -14.8% | | Selling & Marketing Expenses | 105.6 | 68.1 | +55.2% | | G&A Expenses | 150.3 | 116.1 | +29.4% | - **Research and development expenses** decreased primarily due to lower project costs and reduced share-based compensation[7](index=7&type=chunk) - **Selling and marketing expenses** increased primarily due to higher staff costs, marketing expenditures, and amortized expense on Employee Share Incentive Plan modification[7](index=7&type=chunk) [Net Loss and Cash Position](index=2&type=section&id=Net%20Loss%20and%20Cash%20Position) Burning Rock reported a **net loss of RMB262.1 million** in Q2 2022, with net cash used in operating activities at **RMB109.3 million**, and a cash, cash equivalents, restricted cash, and short-term investments balance of **RMB1,153.1 million** Table: Net Loss and Cash Position (RMB million) | Metric | Q2 2022 (RMB million) | Q2 2021 (RMB million) | | :----- | :-------------------- | :-------------------- | | Net Loss | 262.1 | 203.7 | | Net Cash Used in Operating Activities | 109.3 | 119.0 | | Cash, Cash Equivalents, Restricted Cash & Short-term Investments (as of June 30, 2022) | 1,153.1 | N/A | [2022 Financial Guidance](index=2&type=section&id=2022%20Financial%20Guidance) Despite significant Q2 business volume impacts from COVID-19 restrictions, Burning Rock maintains its full-year 2022 revenue guidance of approximately **RMB620 million (US$92.6 million)**, while acknowledging risks of further unpredictable COVID-19 impacts - Burning Rock retains its full-year 2022 revenue guidance of approximately **RMB620 million (US$92.6 million)**[9](index=9&type=chunk) - The Company highlights the risks of further **Covid-related impact** in H2 2022, which is beyond its control and inherently difficult to forecast[9](index=9&type=chunk) [Share Repurchases](index=2&type=section&id=Share%20Repurchases) Burning Rock has completed its **US$10 million share repurchase program**, repurchasing **3,023,138 Class A ordinary shares** in the form of ADSs, which will be held as treasury shares - The **US$10 million share repurchase program** has been completed in full[10](index=10&type=chunk) - The Company repurchased a total of **3,023,138 Class A ordinary shares** in the form of ADSs under the program[10](index=10&type=chunk) - The repurchased shares will be retained as **treasury shares** and have not been excluded from the calculation of loss per share for Q2 2022 financial results[10](index=10&type=chunk) [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Burning Rock hosted a conference call on **August 31, 2022**, to discuss Q2 2022 financial results, with registration and webcast details provided for participants and replay access - Burning Rock hosted a conference call to discuss Q2 2022 financial results at **8:30 a.m. U.S. Eastern Time** (8:30 p.m. Hong Kong time) on **August 31, 2022**[11](index=11&type=chunk) - A live and archived webcast of the conference call is available on the company's **investor relations website**[12](index=12&type=chunk) [About Burning Rock](index=3&type=section&id=About%20Burning%20Rock) Burning Rock Biotech Limited is a precision oncology company utilizing **next-generation sequencing (NGS) technology** for therapy selection in late-stage cancer patients and advancing cancer early detection from R&D to clinical validation - Burning Rock Biotech Limited focuses on applying **next-generation sequencing (NGS) technology** in precision oncology[13](index=13&type=chunk) - Its business includes **NGS-based therapy selection testing** for late-stage cancer patients and **cancer early detection**, which is now in clinical validation[13](index=13&type=chunk) [Safe Harbor Statement](index=3&type=section&id=Safe%20Harbor%20Statement) This section provides a standard disclaimer regarding **forward-looking statements**, noting they are based on current expectations and involve risks and uncertainties, and the company does not undertake to update them unless legally required - This press release contains **forward-looking statements**, identifiable by specific terminology such as 'will,' 'expects,' 'anticipates,' and similar expressions[14](index=14&type=chunk) - Such statements are based on management's current expectations and market conditions, relating to events with known or unknown risks and uncertainties, many beyond Burning Rock's control[14](index=14&type=chunk) - Burning Rock does not undertake any obligation to update forward-looking statements due to new information or future events, except as required by applicable law[14](index=14&type=chunk) [Non-GAAP Measures](index=3&type=section&id=Non-GAAP%20Measures) Burning Rock uses **non-GAAP measures** like non-GAAP gross profit and gross margin, excluding depreciation and amortization, to provide supplemental insights into operating performance and facilitate period-to-period comparisons, not as substitutes for U.S. GAAP financial information - The company uses **non-GAAP measures**, including non-GAAP gross profit and gross margin, as supplemental tools to assess operating performance[15](index=15&type=chunk) - **Non-GAAP gross profit** is defined as gross profit excluding depreciation and amortization, and **non-GAAP gross margin** is gross margin excluding depreciation and amortization[15](index=15&type=chunk) - Management uses these non-GAAP measures to evaluate operating performance and formulate business plans, believing they enable more meaningful period-to-period comparisons of ongoing operations[16](index=16&type=chunk) [Selected Operating Data](index=4&type=section&id=Selected%20Operating%20Data) This section presents key operational metrics for Burning Rock's central laboratory and in-hospital channels across several quarters, showing patient volumes, ordering physicians, and partner hospital counts Table: Central Laboratory Channel Operating Data | Central Laboratory Channel | March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | March 31, 2022 | June 30, 2022 | | :------------------------- | :------------- | :------------ | :----------------- | :---------------- | :------------- | :------------ | | Number of patients tested | 7,716 | 8,155 | 7,808 | 8,235 | 7,743 | 8,060 | | Number of ordering physicians | 1,082 | 1,013 | 920 | 917 | 994 | 767 | | Number of ordering hospitals | 303 | 300 | 287 | 306 | 318 | 264 | Table: In-hospital Channel Operating Data | In-hospital Channel | March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | March 31, 2022 | June 30, 2022 | | :------------------ | :------------- | :------------ | :----------------- | :---------------- | :------------- | :------------ | | Pipeline partner hospitals | 22 | 22 | 24 | 23 | 24 | 25 | | Contracted partner hospitals | 32 | 34 | 34 | 41 | 41 | 41 | | Total number of partner hospitals | 54 | 56 | 58 | 64 | 65 | 68 | [Selected Financial Data](index=5&type=section&id=Selected%20Financial%20Data) This section provides a quarterly breakdown of revenues, gross profit, and share-based compensation expenses across Burning Rock's central laboratory, in-hospital, and pharma research and development channels Table: Revenues by Channel (RMB thousands) | Revenues (RMB thousands) | March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | March 31, 2022 | June 30, 2022 | | :----------------------- | :------------- | :------------ | :----------------- | :---------------- | :------------- | :------------ | | Central laboratory channel | 74,561 | 79,999 | 78,817 | 85,976 | 74,211 | 78,597 | | In-hospital channel | 28,994 | 40,502 | 43,714 | 51,906 | 48,957 | 34,177 | | Pharma research and development channel | 3,068 | 6,778 | 4,084 | 9,463 | 12,356 | 18,072 | | Total revenues | 106,623 | 127,279 | 126,615 | 147,345 | 135,524 | 130,846 | Table: Gross Profit by Channel (RMB thousands) | Gross Profit (RMB thousands) | March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | March 31, 2022 | June 30, 2022 | | :--------------------------- | :------------- | :------------ | :----------------- | :---------------- | :------------- | :------------ | | Central laboratory channel | 55,212 | 58,681 | 58,387 | 65,985 | 50,574 | 57,575 | | In-hospital channel | 20,070 | 29,426 | 31,111 | 34,194 | 33,396 | 20,012 | | Pharma research and development channel | 1,658 | 2,124 | 2,098 | 5,200 | 3,610 | 5,015 | | Total gross profit | 76,940 | 90,231 | 91,596 | 105,379 | 87,580 | 82,602 | Table: Share-based Compensation Expenses (RMB thousands) | Share-based Compensation Expenses (RMB thousands) | March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | March 31, 2022 | June 30, 2022 | | :------------------------------------------------ | :------------- | :------------ | :----------------- | :---------------- | :------------- | :------------ | | Cost of revenues | 339 | 406 | 267 | 492 | 365 | 441 | | Research and development expenses | 22,404 | 20,825 | (9,559) | (4,033) | 12,299 | 11,923 | | Selling and marketing expenses | 2,633 | 2,809 | 2,044 | 2,126 | 1,774 | 2,158 | | General and administrative expenses | 59,382 | 59,369 | 60,803 | 62,126 | 65,715 | 62,615 | | Total share-based compensation expenses | 84,758 | 83,409 | 53,555 | 60,711 | 80,153 | 77,137 | [Unaudited Condensed Statements of Comprehensive Loss](index=6&type=section&id=Unaudited%20Condensed%20Statements%20of%20Comprehensive%20Loss) This section presents Burning Rock's unaudited condensed statements of comprehensive loss, detailing revenues, cost of revenues, gross profit, operating expenses, and net loss for both the three and six months ended June 30, 2022, compared to previous periods [Three Months Ended June 30, 2022](index=6&type=section&id=Unaudited%20Condensed%20Statements%20of%20Comprehensive%20Loss%20-%20Three%20Months) This section details the unaudited condensed statements of comprehensive loss for the three months ended June 30, 2022, showing revenues, cost of revenues, gross profit, operating expenses, and net loss Table: Condensed Statements of Comprehensive Loss (Q2 2022, RMB) | Metric | Q2 2022 (RMB) | Q2 2021 (RMB) | | :----- | :------------ | :------------ | | Revenues | 130,846 | 127,279 | | Cost of Revenues | (48,244) | (37,048) | | Gross Profit | 82,602 | 90,231 | | Total Operating Expenses | (348,062) | (292,259) | | Loss from Operations | (265,460) | (202,028) | | Net Loss | (262,137) | (203,665) | | Basic and Diluted Loss per Class A Ordinary Share | (2.50) | (1.96) | [Six Months Ended June 30, 2022](index=7&type=section&id=Unaudited%20Condensed%20Statements%20of%20Comprehensive%20Loss%20-%20Six%20Months) This section details the unaudited condensed statements of comprehensive loss for the six months ended June 30, 2022, showing revenues, cost of revenues, gross profit, operating expenses, and net loss Table: Condensed Statements of Comprehensive Loss (Six Months Ended June 30, 2022, RMB) | Metric | Six Months Ended June 30, 2022 (RMB) | Six Months Ended June 30, 2021 (RMB) | | :----- | :----------------------------------- | :----------------------------------- | | Revenues | 266,370 | 233,902 | | Cost of Revenues | (96,188) | (66,731) | | Gross Profit | 170,182 | 167,171 | | Total Operating Expenses | (698,502) | (541,062) | | Loss from Operations | (528,320) | (373,891) | | Net Loss | (523,525) | (375,076) | | Basic and Diluted Loss per Class A Ordinary Share | (5.00) | (3.60) | [Unaudited Condensed Consolidated Balance Sheets](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of Burning Rock's financial position, detailing assets, liabilities, and shareholders' equity as of December 31, 2021, and June 30, 2022, showing a decrease in total assets and cash, alongside an increase in accumulated deficits Table: Consolidated Balance Sheet - Assets (RMB thousands) | Asset Category | Dec 31, 2021 (RMB thousands) | June 30, 2022 (RMB thousands) | | :------------- | :--------------------------- | :---------------------------- | | Cash and cash equivalents | 1,431,317 | 1,148,597 | | Total current assets | 1,820,946 | 1,463,085 | | Total non-current assets | 457,641 | 398,189 | | TOTAL ASSETS | 2,278,587 | 1,861,274 | Table: Consolidated Balance Sheet - Liabilities & Equity (RMB thousands) | Liability & Equity Category | Dec 31, 2021 (RMB thousands) | June 30, 2022 (RMB thousands) | | :------------------------ | :--------------------------- | :---------------------------- | | Total current liabilities | 372,184 | 359,450 | | Total non-current liabilities | 61,092 | 69,591 | | TOTAL LIABILITIES | 433,276 | 429,041 | | Total shareholders' equity | 1,845,311 | 1,432,233 | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 2,278,587 | 1,861,274 | - **Accumulated deficits** increased from **RMB (2,228,713) thousands** as of Dec 31, 2021, to **RMB (2,752,238) thousands** as of June 30, 2022[28](index=28&type=chunk) [Unaudited Condensed Statements of Cash Flows](index=10&type=section&id=Unaudited%20Condensed%20Statements%20of%20Cash%20Flows) This section details Burning Rock's cash flow activities for the three and six months ended June 30, 2022, showing net cash used in operating, investing, and financing activities, leading to an overall decrease in cash, cash equivalents, and restricted cash [Three Months Ended June 30, 2022](index=10&type=section&id=Unaudited%20Condensed%20Statements%20of%20Cash%20Flows%20-%20Three%20Months) This section details the unaudited condensed statements of cash flows for the three months ended June 30, 2022, showing net cash used in operating, investing, and financing activities Table: Condensed Statements of Cash Flows (Q2 2022, RMB thousands) | Cash Flow Activity | Q2 2022 (RMB thousands) | Q2 2021 (RMB thousands) | | :----------------- | :---------------------- | :---------------------- | | Net cash used in operating activities | (109,274) | (118,998) | | Net cash (used in) generated from investing activities | 30,729 | (67,577) | | Net cash used in financing activities | (69,559) | (8,961) | | Net decrease in cash, cash equivalents and restricted cash | (121,825) | (229,621) | | Cash, cash equivalents and restricted cash at end of period | 1,153,050 | 1,883,265 | [Six Months Ended June 30, 2022](index=10&type=section&id=Unaudited%20Condensed%20Statements%20of%20Cash%20Flows%20-%20Six%20Months) This section details the unaudited condensed statements of cash flows for the six months ended June 30, 2022, showing net cash used in operating, investing, and financing activities Table: Condensed Statements of Cash Flows (Six Months Ended June 30, 2022, RMB thousands) | Cash Flow Activity | Six Months Ended June 30, 2022 (RMB thousands) | Six Months Ended June 30, 2021 (RMB thousands) | | :----------------- | :--------------------------------------------- | :--------------------------------------------- | | Net cash used in operating activities | (253,634) | (232,143) | | Net cash generated from investing activities | 17,718 | 220,752 | | Net cash used in financing activities | (73,493) | (13,123) | | Net decrease in cash, cash equivalents and restricted cash | (286,062) | (41,941) | | Cash, cash equivalents and restricted cash at end of period | 1,153,050 | 1,883,265 | [Reconciliations of GAAP and Non-GAAP Results](index=11&type=section&id=Reconciliations%20of%20GAAP%20and%20Non-GAAP%20Results) This section reconciles GAAP gross profit to non-GAAP gross profit and non-GAAP gross margin, broken down by central laboratory, in-hospital, and pharma R&D channels across several quarters, primarily adjusting for depreciation and amortization in cost of revenues Table: Reconciliation of Gross Profit to Non-GAAP Gross Profit (RMB thousands) | Gross Profit (RMB thousands) | March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | March 31, 2022 | June 30, 2022 | | :--------------------------- | :------------- | :------------ | :----------------- | :---------------- | :------------- | :------------ | | Total gross profit | 76,940 | 90,231 | 91,596 | 105,379 | 87,580 | 82,602 | | Add: depreciation and amortization included in cost of revenues | 206 | 437 | 1,382 | 1,981 | 5,139 | 8,300 | | Total non-GAAP gross profit | 77,146 | 90,668 | 92,978 | 107,360 | 92,719 | 90,902 | Table: Non-GAAP Gross Margin by Channel | Non-GAAP Gross Margin | March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | March 31, 2022 | June 30, 2022 | | :-------------------- | :------------- | :------------ | :----------------- | :---------------- | :------------- | :------------ | | Central laboratory channel | 74.2% | 73.7% | 75.7% | 77.9% | 71.6% | 76.5% | | In-hospital channel | 69.5% | 72.9% | 71.4% | 66.1% | 68.4% | 62.7% | | Pharma research and development channel | 54.4% | 31.9% | 51.8% | 64.0% | 49.4% | 51.7% | | Total non-GAAP gross margin | 72.4% | 71.2% | 73.4% | 72.9% | 68.4% | 69.5% |