Core Viewpoint - The company, Burning Stone Medical (BNR), is experiencing a decline in revenue while showing significant improvement in net profit year-over-year, indicating a potential shift in operational efficiency and cost management [1][2]. Financial Performance - As of December 31, 2024, Burning Stone Medical reported total revenue of 516 million RMB, a decrease of 4.02% year-over-year [1]. - The company recorded a net profit attributable to the parent of -347 million RMB, which represents a year-over-year increase of 46.97% [1]. Upcoming Events - Burning Stone Medical is scheduled to disclose its Q1 2025 financial report on June 4, with the actual date subject to company announcement [2]. Company Overview - Founded in 2014, Burning Stone Medical focuses on providing clinically valuable next-generation sequencing (NGS) for precision oncology [2]. - The company holds a leading market share in tumor patient testing in China and collaborates with global anti-tumor pharmaceutical companies on biomarkers and companion diagnostics [2]. - The company received the first NGS testing kit certification from the National Medical Products Administration (NMPA) in July 2018, marking a significant milestone in the in vitro diagnostic field [2]. - The laboratories in Guangzhou and California have obtained CLIA and CAP laboratory quality system certifications, ensuring high standards in testing [2].

Core Insights - The stock price of Burning Stone Medical (BNR) increased by 3.31% on May 6, reaching $2.50 per share, with a total market capitalization of $26.9165 million [1] - As of September 30, 2024, the company's total revenue is projected to be 390 million RMB, a year-on-year decrease of 6.38%, while the net profit attributable to the parent company is expected to be -265 million RMB, reflecting a year-on-year increase of 46.01% [1] Company Overview - Burning Stone Medical was established in 2014, with a mission to "guard the light of life with science," focusing on providing clinically valuable next-generation sequencing (NGS) for precision oncology [2] - The company's business and R&D directions primarily cover: 1) tumor patient population testing, holding a leading market share in China; 2) collaborations with global anti-tumor pharmaceutical companies for biomarkers and companion diagnostics; 3) multi-cancer early detection [2] - In July 2018, the company received the first certificate for NGS testing kits for tumors from the National Medical Products Administration (NMPA) in China, marking a milestone in the in vitro diagnostic field [2] - The laboratory located in Guangzhou, China, has passed the technical review by the Guangdong Provincial Clinical Testing Center and obtained quality system certifications from CLIA and CAP; the laboratory in California, USA, has also received CLIA and CAP certifications [2] - The company is committed to developing innovative and reliable NGS testing products to advance the field of precision oncology [2]

Core Viewpoint - The company, Burning Stone Medical (BNR), is experiencing a decline in revenue while showing significant improvement in net profit, indicating a potential shift in operational efficiency and cost management [1][2]. Financial Performance - As of September 30, 2024, Burning Stone Medical reported total revenue of 390 million RMB, a year-over-year decrease of 6.38% [1]. - The company recorded a net profit attributable to shareholders of -265 million RMB, which represents a year-over-year increase of 46.01% [1]. Company Overview - Burning Stone Medical was established in 2014 and focuses on providing clinically valuable next-generation sequencing (NGS) for precision oncology [2]. - The company holds a leading market share in tumor patient detection in China and collaborates with global anti-tumor pharmaceutical companies on biomarkers and companion diagnostics [2]. - The company received the first NGS testing kit approval from the National Medical Products Administration (NMPA) in July 2018, marking a significant milestone in the in vitro diagnostic field [2]. - The laboratories in Guangzhou, China, and California, USA, have obtained CLIA and CAP laboratory quality system certifications, ensuring high standards in testing [2].

Regulatory Environment - The company is subject to PRC laws regarding data security and foreign investments, which may impact operations and compliance requirements[24]. - The PRC government has significant authority to influence the company's business operations, with potential risks from changes in economic, political, or social conditions[25]. - Recent regulatory actions by the PRC government include enhanced supervision over China-based companies listed overseas and new cybersecurity measures[26]. - The CSRC's Overseas Listing Trial Measures, effective March 31, 2023, impose new filing requirements for overseas listings, creating uncertainties for future capital raising[35]. - The PRC Data Security Law, effective September 1, 2021, imposes obligations on data-related activities but has not materially impacted the company's operations as of the report date[33]. - The Holding Foreign Companies Accountable Act may impact the trading of the company's securities if audit reports are not compliant[43]. - The company has faced regulatory risks associated with offshore offerings and cybersecurity oversight by the PRC government[41]. - The company is subject to ongoing regulatory review, which could result in adverse government actions and negative publicity[144]. - The evolving government regulations may impose additional burdens on the company's efforts to commercialize its products and services[151]. - The Negative List (2024 Edition) prohibits foreign investment in businesses related to genomic diagnosis and treatment technology, effective May 1, 2024[161]. - The Foreign Investment Law, effective January 1, 2020, introduces uncertainties regarding the company's corporate structure and governance, potentially affecting business operations[178]. - Recent regulatory developments in China may impose additional review and disclosure requirements, affecting the company's ability to raise capital outside China[186]. Financial Performance - Total revenues for the year ended December 31, 2022, were RMB 563.2 million, with a net loss of RMB 971.2 million[45]. - For the year ended December 31, 2023, total revenues decreased to RMB 537.4 million, with a net loss of RMB 653.7 million[45]. - Projected revenues for the year ended December 31, 2024, are expected to be RMB 515.8 million, with a net loss of RMB 346.6 million[46]. - As of December 31, 2023, total assets amounted to RMB 1,040.0 million, with total liabilities of RMB 271.6 million[46]. - Cash and cash equivalents as of December 31, 2024, are projected to be RMB 519.8 million (approximately US$71.2 million)[46]. - The company reported net cash used in operating activities of RMB 456.8 million for the year ended December 31, 2022[46]. - For the year ended December 31, 2024, the consolidated net cash used in operating activities was RMB (92,261) thousand, with a significant decline from the previous year[47]. - The company reported a net cash used in investing activities of RMB (4,412) thousand for the year ended December 31, 2024, compared to RMB (9,300) thousand in the previous year[47]. - The company incurred net losses of RMB971.2 million, RMB653.7 million, and RMB346.6 million (US$47.5 million) in 2022, 2023, and 2024 respectively[74]. Operational Structure - The VIE structure allows the company to control operations in China despite restrictions on foreign ownership[39]. - The majority of the company's assets and revenues are generated by the VIE and its subsidiaries, making the corporate structure critical to its financial health[56]. - The company relies on contractual arrangements with the VIE for operational control, which may not be as effective as direct ownership[168]. - Any breach of contractual obligations by the VIE or its shareholders could lead to significant disruptions in business operations[171]. - The ultimate beneficial shareholders of the VIE may have conflicts of interest that could adversely affect the company's business[172]. - The company has the exclusive right to purchase equity interests in the VIE, but the purchase price may be subject to PRC law limitations, potentially increasing costs[175]. - Equity or asset transfers may require approvals from PRC authorities, and the transfer prices could be subject to tax adjustments, impacting financial results[176]. - Limitations on dividend payments from PRC subsidiaries could adversely affect the company's ability to fund operations and growth[218]. - The company's revenues are primarily in Renminbi, which is not freely convertible, potentially limiting the ability to pay dividends due to capital controls[219]. - A withholding tax rate of up to 10% may apply to dividends payable by Chinese companies to non-PRC resident enterprises, affecting returns for investors[220]. - The company relies on dividends from its subsidiaries in China for cash requirements, making it vulnerable to restrictions on these payments[217]. Product Development and Market Position - The company's cancer therapy selection products and services contributed substantially all of its revenues for 2022, 2023, and 2024[76]. - The company launched its first MRD product, CanCatch®, in March 2022, indicating ongoing product development efforts[69]. - The company has obtained NMPA approval for two NGS reagent kits and has one early cancer detection product with Breakthrough Device Designation from both the FDA and NMPA[93]. - The company anticipates fluctuations in revenues from in-hospital business based on partner hospitals' clinical needs and budgets[92]. - The company has experienced a decrease in demand for its products and services during the COVID-19 pandemic, affecting financial performance[105]. - The company faces increasing competition in the NGS-based cancer therapy selection market, which may impact revenue growth[107]. - The company plans to continue expanding collaborations with hospitals under the in-hospital model, which involves a lengthy and costly process[91]. - The company must continuously upgrade existing products and launch new ones to keep pace with rapid industry changes, which requires significant resources[81]. - The company has obtained clinical PCR testing laboratory and NGS laboratory certificates, reducing the risk of violations related to genetic testing regulations[154]. Human Resources and Operational Challenges - The company collaborates with hospitals and physicians, and maintaining these relationships is crucial for its operational success[87]. - The company faces intense competition for skilled personnel, which is critical for its research, development, and sales efforts, potentially impacting its business operations[113]. - The company must improve operational controls and hire additional personnel to meet increased demand for its products and services[104]. - The company relies heavily on its own sales and marketing team to promote the "Burning Rock" brand and NGS-based products, which may require significant expenses and resources[111]. Cybersecurity and Compliance - The company has established internal cybersecurity regulations and has completed necessary filings for information security protection[31]. - Cybersecurity threats pose risks to the company's information technology systems, which are essential for various operational functions, and any breaches could harm its reputation and financial standing[120][121]. - The company has not been involved in any cybersecurity reviews or received any penalties related to data security issues as of the report date[195]. - The company is subject to cybersecurity reviews if identified as a critical information infrastructure operator or network platform operator, which could impact operations[192]. - As of the report date, the likelihood of being identified as a CIIO or NPO is considered low, as the company has not received any identification notices and processes fewer than one million users' personal information[194]. Intellectual Property and Market Acceptance - The company has successfully registered several trademarks in China, with recent rulings in its favor regarding previously rejected applications, enhancing its intellectual property position[124]. - The company is subject to potential intellectual property infringement claims, which could lead to significant legal costs and disrupt business operations[128]. - Ethical, legal, and social concerns regarding genomic information may limit market acceptance of the company's products and services, affecting overall demand[130]. Future Outlook and Risks - The company requires substantial funding for operations, and failure to raise sufficient capital could adversely affect its business and financial condition[74]. - The company's ability to achieve profitability is uncertain, as it continues to invest significantly in research, development, and marketing[75]. - The company has a limited operating history, making it difficult to predict future performance and profitability[69]. - The company may face substantial liabilities from product liability claims, which could exceed its resources[85]. - The company may face significant delays in obtaining necessary approvals for its products, impacting its competitive position[140]. - The interpretation and enforcement of PRC laws regarding the cancer genotyping industry are uncertain, which may adversely affect the company's operations[213]. - The company may be classified as a "PRC resident enterprise," subjecting it to a 25% enterprise income tax on global income, which could reduce net income[215]. - The ongoing geopolitical tensions, particularly between the U.S. and China, may increase operational costs and affect the company's financial performance[207]. - The U.S. government may consider delisting Chinese companies from U.S. exchanges, which could materially affect the price of the company's ADSs[209]. - The Outbound Investment Rule, effective January 2025, restricts U.S. investments in certain technology sectors related to China, potentially limiting the company's business operations and capital raising abilities[210]. - The company may incur significant expenses and penalties if found in violation of anti-corruption laws, impacting its financial condition and reputation[155].

Core Viewpoint - Burning Rock Biotech Limited reported its financial results for the fourth quarter and full year of 2024, highlighting a mixed performance with a decrease in total revenues but improvements in gross profit and operating efficiency. Financial Performance - Revenues for Q4 2024 were RMB126.0 million (US$17.3 million), a 4.1% increase from RMB121.1 million in Q4 2023 [3] - Full year revenues for 2024 were RMB515.8 million (US$70.7 million), representing a 4.0% decrease from RMB537.4 million in 2023 [10] - Gross profit for Q4 2024 was RMB89.4 million (US$12.3 million), a 14.5% increase from RMB78.1 million in Q4 2023, with a gross margin of 71.0% compared to 64.5% in the prior year [5] - Full year gross profit remained stable at RMB362.4 million (US$49.6 million) for 2024, compared to RMB363.2 million in 2023, with an increase in gross margin to 70.3% from 67.6% [11] Cost Management - Cost of revenues for Q4 2024 was RMB36.6 million (US$5.0 million), a 14.8% decrease from RMB43.0 million in Q4 2023 [4] - Operating expenses for Q4 2024 were RMB171.3 million (US$23.5 million), a 29.9% decrease from RMB244.4 million in Q4 2023, driven by budget control measures and headcount reduction [7] - Full year operating expenses for 2024 were RMB720.0 million (US$98.6 million), a 30.3% decrease from RMB1,032.5 million in 2023 [13] Business Segments - Revenue from the central laboratory business in Q4 2024 was RMB39.3 million (US$5.4 million), a 23.4% decrease from RMB51.3 million in Q4 2023, attributed to a decrease in the number of tests [8] - Revenue from the in-hospital business in Q4 2024 was RMB43.5 million (US$6.0 million), a 50.9% increase from RMB28.8 million in Q4 2023, driven by increased sales volume [8] - Revenue from pharma research and development services in Q4 2024 was RMB43.3 million (US$5.9 million), a 5.6% increase from RMB41.0 million in Q4 2023 [8] Net Loss and Cash Position - Net loss for Q4 2024 was RMB81.3 million (US$11.1 million), compared to RMB162.2 million in Q4 2023 [9] - Cash, cash equivalents, and restricted cash totaled RMB522.2 million (US$71.5 million) as of December 31, 2024 [9] Research and Development - Research and development expenses for Q4 2024 were RMB52.2 million (US$7.2 million), a 28.6% decrease from RMB73.1 million in Q4 2023 [15] - The company completed an organizational optimization aimed at improving profitability and efficiency [8]

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]