Core Insights - Burning Rock Biotech Limited successfully passed all shareholder resolutions at its 2024 annual general meeting, including the appointment of Ernst & Young Hua Ming LLP as auditor for the fiscal year ending December 31, 2024 [1] - The re-election of directors Yusheng Han and Gang Lu was also approved by shareholders [1] - Directors were authorized to take necessary actions to implement the resolutions [1] Company Overview - Burning Rock Biotech Limited focuses on next generation sequencing (NGS) technology in precision oncology, aiming to enhance cancer treatment and early detection [2] - The company's business includes NGS-based therapy selection testing for late-stage cancer patients and cancer early detection, which has progressed to clinical validation [2]

Revenue Performance - Total revenues for Q3 2024 were RMB128.6 million (US$18.3 million), a 0.8% increase from RMB127.6 million in Q3 2023[3] - In-hospital business revenue increased by 17.0% to RMB63.8 million (US$9.1 million) compared to RMB54.5 million in Q3 2023[3] - Central laboratory business revenue decreased by 25.2% to RMB40.0 million (US$5.7 million) from RMB53.5 million in Q3 2023[3] - Revenues for the three months ended September 30, 2024, were RMB 128.6 million (US$ 18.3 million), a slight decrease from RMB 127.6 million for the same period in 2023[20] - The in-hospital channel revenue increased to RMB 63,769,000 for September 30, 2024, up from RMB 54,496,000 in September 30, 2023, representing a growth of 17%[39] Profitability - Gross profit for Q3 2024 was RMB91.8 million (US$13.1 million), a 6.9% increase from RMB85.9 million in Q3 2023, with a gross margin of 71.4%[4] - Gross profit for the same period was RMB 91.8 million, compared to RMB 85.9 million in the prior year, reflecting a gross margin of 71.4%[20] - Non-GAAP gross profit increased to RMB 97.8 million (US$ 13.9 million) for the three months ended September 30, 2024, representing a 2.8% increase from RMB 95.1 million for the same period in 2023[33] - The gross profit for the in-hospital channel was RMB 46,580,000 for September 30, 2024, compared to RMB 35,459,000 for September 30, 2023, indicating a growth of 31%[39] Expenses - Operating expenses decreased by 50.7% to RMB130.4 million (US$18.6 million) from RMB264.7 million in Q3 2023[5] - Total operating expenses decreased to RMB 130.4 million for the three months ended September 30, 2024, down from RMB 264.7 million in the same period of 2023[20] - Research and development expenses fell by 41.3% to RMB49.2 million (US$7.0 million) compared to RMB83.7 million in Q3 2023[5] - Research and development expenses were RMB 49.2 million for the three months ended September 30, 2024, a decrease from RMB 83.7 million in the same period of 2023[20] - Total share-based compensation expenses decreased from RMB 73,393,000 for September 30, 2023, to RMB 10,118,000 for September 30, 2024[39] Net Loss - The company reported a net loss of RMB491.5 million (US$69.5 million) for the nine months ended September 30, 2024, compared to a net loss of RMB265.3 million (US$37.8 million) for the same period in 2023[13] - Net loss for the three months ended September 30, 2024, was RMB 35.7 million (US$ 5.1 million), significantly reduced from RMB 175.0 million in the same period of 2023[34] - The company reported a total comprehensive loss of RMB 39.8 million for the three months ended September 30, 2024, compared to RMB 176.9 million in the same period of 2023[20] Cash and Assets - Cash, cash equivalents, restricted cash, and short-term investments totaled RMB498.2 million (US$71.0 million) as of September 30, 2024[6] - Cash and cash equivalents decreased from RMB 615,096,000 as of December 31, 2023, to RMB 497,969,000 as of September 30, 2024[42] - The total assets as of September 30, 2024, were RMB 984,805,000, a decrease from RMB 1,040,001,000 as of December 31, 2023[42] - Cash, cash equivalents, and restricted cash at the end of the period were RMB 498.2 million (US$ 71.0 million), down from RMB 636.7 million at the beginning of the period[25] Strategic Developments - A strategic cooperation agreement was signed with MGI Tech Co., Ltd in October 2024 to enhance precision oncology applications[2] - The companion diagnostic for EGFR exon 20 insertion mutation was approved by the NMPA, marking a significant milestone in lung cancer diagnostics[2] - The company continues to focus on expanding its precision oncology services and enhancing its next-generation sequencing technology[30] - The total number of partner hospitals increased from 84 as of September 30, 2023, to a projected 91 by September 30, 2024[38] - The company expects to have 30 pipeline partner hospitals by March 31, 2024, up from 28 as of September 30, 2023[38] Liabilities - Total liabilities increased to RMB 336.6 million as of September 30, 2024, compared to RMB 271.6 million as of December 31, 2023[23]

Core Viewpoint - Burning Rock Biotech Limited reported its financial results for Q3 2024, showing a slight increase in total revenues but significant changes in revenue streams and operating expenses, reflecting a strategic shift towards in-hospital testing and improved operational efficiency [1][3][11]. Recent Business Updates - The company presented study results at the 2024 World Conference on Lung Cancer, highlighting potential treatment modalities for specific lung cancer subtypes [2]. - A strategic cooperation agreement was signed with MGI Tech Co., Ltd to enhance clinical applications in precision oncology [2]. - The companion diagnostic for EGFR exon 20 insertion mutation for sunvozertinib was approved by the National Medical Products Administration in China, marking a significant milestone in NGS-based diagnostics for lung cancer [2]. Financial Results - Total revenues for Q3 2024 were RMB 128.6 million (US$ 18.3 million), a 0.8% increase from RMB 127.6 million in Q3 2023 [3]. - In-hospital business revenue increased by 17.0% to RMB 63.8 million (US$ 9.1 million) compared to RMB 54.5 million in Q3 2023, driven by higher sales volume [4]. - Central laboratory business revenue decreased by 25.2% to RMB 40.0 million (US$ 5.7 million) due to a reduction in the number of tests conducted [4]. - Revenue from pharma research and development services rose by 27.1% to RMB 24.9 million (US$ 3.5 million) compared to RMB 19.6 million in Q3 2023 [4]. Cost and Profitability - Cost of revenues decreased by 11.6% to RMB 36.8 million (US$ 5.2 million) in Q3 2024, aligning with the decline in central laboratory revenue [5]. - Gross profit increased by 6.9% to RMB 91.8 million (US$ 13.1 million), with a gross margin of 71.4%, up from 67.4% in Q3 2023 [6]. - Non-GAAP gross profit, excluding depreciation and amortization, was RMB 97.8 million (US$ 13.9 million), a 2.8% increase from RMB 95.1 million in Q3 2023 [7][8]. Operating Expenses - Total operating expenses decreased significantly by 50.7% to RMB 130.4 million (US$ 18.6 million) compared to RMB 264.7 million in Q3 2023, driven by cost control measures and headcount reductions [9]. - Research and development expenses fell by 41.3% to RMB 49.2 million (US$ 7.0 million) due to staff cost reductions and decreased project expenditures [10]. - Selling and marketing expenses decreased by 22.3% to RMB 48.4 million (US$ 6.9 million) [10]. Net Loss and Cash Position - The net loss for Q3 2024 was RMB 35.7 million (US$ 5.1 million), a significant reduction from RMB 175.0 million in Q3 2023 [11]. - As of September 30, 2024, the company had cash, cash equivalents, restricted cash, and short-term investments totaling RMB 498.2 million (US$ 71.0 million) [11].

Company Changes - Mr. Leo Li has resigned as a director and chief financial officer of Burning Rock Biotech Limited, effective September 27, 2024, citing personal reasons and confirming no disagreements with the Board or the Company [1][2] - Ms. Xiaozhi Hu, who has been with the Company since May 2014, will take over financial operations and reporting, directly reporting to Mr. Yusheng Han, the chairman and CEO [2] Company Overview - Burning Rock Biotech Limited focuses on next generation sequencing (NGS) technology in precision oncology, offering NGS-based therapy selection testing for late-stage cancer patients and cancer early detection services [3]

Revenue Performance - Total revenues for Q1 2024 were RMB 125.6 million (US$ 17.4 million), a decrease of 11.9% from RMB 142.5 million in Q1 2023[3] - Revenue from in-hospital business increased by 11.3% to RMB 57.4 million (US$ 7.9 million) compared to RMB 51.6 million in Q1 2023[3] - Revenue from central laboratory business decreased by 23.0% to RMB 47.6 million (US$ 6.6 million) from RMB 61.8 million in Q1 2023[3] - Total revenues for the three months ended September 30, 2023, were RMB 127,566, a decrease of 13% compared to RMB 146,268 for the previous quarter[19] Profitability - Gross profit for Q1 2024 was RMB 85.7 million (US$ 11.9 million), representing a 13.2% decrease from RMB 98.8 million in Q1 2023[5] - Non-GAAP gross profit for Q1 2024 was RMB 93.0 million (US$ 12.9 million), a decrease of 13.8% from RMB 107.9 million in Q1 2023[6] - Gross profit for the three months ended September 30, 2023, was RMB 85,920, representing a gross margin of approximately 67.3%[19] - Total gross profit for the three months ended September 30, 2023, was RMB 85,920 thousand, a decrease from RMB 100,422 thousand in June 2023[26] - Non-GAAP gross profit for the same period was RMB 95,084 thousand, compared to RMB 109,369 thousand in June 2023[26] - Non-GAAP gross margin for the three months ended September 30, 2023, was 74.5%, down from 74.8% in June 2023[26] Operating Expenses - Operating expenses decreased by 26.4% to RMB 211.5 million (US$ 29.3 million) in Q1 2024 from RMB 287.2 million in Q1 2023[7] - Operating expenses totaled RMB 264,735 for the three months ended September 30, 2023, a decrease of 10% from RMB 236,146 in the previous quarter[19] Net Loss - Net loss for Q1 2024 was RMB 121.5 million (US$ 16.8 million), an improvement from a net loss of RMB 185.3 million in Q1 2023[8] - The net loss for the three months ended September 30, 2023, was RMB 174,981, compared to a net loss of RMB 131,242 in the previous quarter, reflecting a 33% increase in losses[19] Cash and Assets - As of March 31, 2024, cash, cash equivalents, restricted cash, and short-term investments totaled RMB 572.7 million (US$ 79.3 million)[8] - Cash and cash equivalents as of March 31, 2024, were RMB 572,616, down from RMB 615,096 as of December 31, 2023[21] - Total current assets decreased to RMB 840,848 as of March 31, 2024, from RMB 884,096 as of December 31, 2023[21] - Total liabilities as of March 31, 2024, were RMB 268,094, a slight decrease from RMB 271,591 as of December 31, 2023[23] Cash Flow - The company reported a net cash used in operating activities of RMB 40,209 for the three months ended March 31, 2024, compared to RMB 113,143 for the same period in the previous year[25] Future Expectations - The company expects to achieve breakeven for the full year 2024, measured by non-GAAP gross profit minus non-GAAP SG&A[9] - The company expects a total gross profit of RMB 78,113 thousand for the three months ending December 31, 2023[26] - The company anticipates a non-GAAP gross profit of RMB 87,063 thousand for the same period[26] Foreign Currency Impact - The company experienced a foreign currency translation adjustment loss of RMB 5,659 for the three months ended March 31, 2024[19] Segment Performance - Central laboratory channel gross profit was RMB 41,487 thousand for September 2023, a decline from RMB 51,876 thousand in June 2023[26] - In-hospital channel gross profit increased to RMB 35,459 thousand in September 2023, up from RMB 33,353 thousand in June 2023[26] - Pharma research and development channel gross profit dropped to RMB 8,974 thousand in September 2023, down from RMB 15,193 thousand in June 2023[26] - Non-GAAP gross profit for the central laboratory channel was RMB 44,037 thousand in September 2023, compared to RMB 54,521 thousand in June 2023[26] - Non-GAAP gross margin for the in-hospital channel was 70.1% in September 2023, a decrease from 66.9% in June 2023[26]

Core Viewpoint - Burning Rock Biotech Limited reported a decrease in total revenues for Q2 2024, primarily due to a transition from central-lab to in-hospital testing, although the in-hospital segment showed double-digit growth [3][4]. Business Updates - The company presented study results on small-cell lung cancer and colorectal cancer at ASCO in June 2024, focusing on the efficacy and safety of high-dose Almonertinib and individualized tumor-informed circulating tumor DNA analysis [2]. - A new collaboration for companion diagnostics was announced with Bayer in China [2]. Financial Results for Q2 2024 - Total revenues were RMB 135.5 million (US$ 18.7 million), a 7.3% decrease from RMB 146.3 million in Q2 2023 [3]. - In-hospital business revenue increased by 11.2% to RMB 59.9 million (US$ 8.2 million) from RMB 53.8 million in Q2 2023 [4]. - Central laboratory business revenue decreased by 26.4% to RMB 48.8 million (US$ 6.7 million) from RMB 66.2 million in Q2 2023 [4]. - Pharma research and development services revenue increased by 2.6% to RMB 26.9 million (US$ 3.7 million) from RMB 26.2 million in Q2 2023 [4]. Cost and Profitability - Cost of revenues decreased by 12.5% to RMB 40.1 million (US$ 5.5 million) from RMB 45.8 million in Q2 2023 [5]. - Gross profit was RMB 95.4 million (US$ 13.1 million), a 5.0% decrease from RMB 100.4 million in Q2 2023, with a gross margin of 70.4% [6]. - Non-GAAP gross profit was RMB 101.9 million (US$ 14.0 million), a 6.8% decrease from RMB 109.4 million in Q2 2023, with a non-GAAP gross margin of 75.2% [7]. Operating Expenses - Operating expenses decreased by 12.5% to RMB 206.7 million (US$ 28.4 million) from RMB 236.1 million in Q2 2023, driven by budget control measures and headcount reduction [7]. - Research and development expenses decreased by 32.2% to RMB 65.0 million (US$ 8.9 million) from RMB 95.8 million in Q2 2023 [8]. - Selling and marketing expenses decreased by 31.0% to RMB 48.9 million (US$ 6.7 million) from RMB 70.8 million in Q2 2023 [8]. - General and administrative expenses increased by 33.5% to RMB 92.8 million (US$ 12.8 million) from RMB 69.5 million in Q2 2023, primarily due to increased amortized expenses on share-based compensation [8]. Net Loss and Cash Position - The net loss for Q2 2024 was RMB 108.0 million (US$ 14.9 million), compared to RMB 131.2 million in Q2 2023 [9]. - As of June 30, 2024, cash, cash equivalents, restricted cash, and short-term investments totaled RMB 533.0 million (US$ 73.3 million) [9].

Core Viewpoint - Burning Rock Biotech Limited intends to delist its American Depositary Shares (ADSs) from the London Stock Exchange (LSE) due to low trading volume and associated costs, with the delisting expected to take effect around September 18, 2024 [1]. Group 1 - The company will submit requests to the LSE for cancellation of trading admission of its ADSs and to the UK Financial Conduct Authority for cancellation of the ADSs listing on the Official List [1]. - The decision for delisting is driven by sustained low trading volume and liquidity in the ADSs on the LSE [1]. - Following the delisting, the ADSs will continue to be traded on the Nasdaq Global Market [2]. Group 2 - Burning Rock Biotech Limited focuses on next generation sequencing (NGS) technology in precision oncology, offering NGS-based therapy selection testing for late-stage cancer patients and NGS-based cancer early detection [3]. - The company's early detection technology has progressed from proof-of-concept research and development into the clinical validation stage [3].

Core Points - Burning Rock Biotech Limited has regained compliance with Nasdaq's minimum bid price requirement after maintaining a closing bid price of $1.00 per share for 10 consecutive business days [1][3] - The company was previously notified on December 29, 2023, that it was not in compliance due to its American depositary shares (ADSs) closing below the minimum bid price for 30 consecutive business days [2] - To regain compliance, the company adjusted the ratio of its ADSs from one ADS representing one Class A ordinary share to one ADS representing ten Class A ordinary shares, effective May 15, 2024 [2] Company Overview - Burning Rock focuses on next generation sequencing (NGS) technology in precision oncology, offering NGS-based therapy selection testing for late-stage cancer patients and cancer early detection services [4] - The company's mission is to guard life via science, and it has progressed its early detection services beyond proof-of-concept R&D into the clinical validation stage [4]

GUANGZHOU, China, May 30, 2024 (GLOBE NEWSWIRE) -- Burning Rock Biotech Limited (NASDAQ:BNR, the "Company" or "Burning Rock"))) has recently announced a collaboration with Bayer to develop next-generation sequencing (NGS)-based companion diagnostic assays (CDx), aiming to provide diagnostic methods, to enable treatment choice for patients with cancer in China, while driving innovation and development in cancer therapy. This collaboration will focus on the development of companion diagnostic products in Chin ...