Gracell Biotechnologies(US:GRCL)2023-08-14 20:52Financial Performance - The company incurred a net loss of RMB 298,662 thousand (approximately US$ 41,187 thousand) for the six months ended June 30, 2023, compared to a net loss of RMB 304,888 thousand for the same period in 2022[6]. - For the six months ended June 30, 2023, the net loss was RMB 298,662, a decrease of 2.4% compared to RMB 304,888 in the same period of 2022[12]. - The net loss attributable to Gracell Biotechnologies Inc.'s ordinary shareholders was RMB 298,662, compared to RMB 304,888 for the same period in 2022, resulting in a basic and diluted net loss per share of RMB (0.88) in 2023 versus RMB (0.90) in 2022[141]. Assets and Liabilities - As of June 30, 2023, Gracell Biotechnologies reported total assets of RMB 1,377,886 thousand (approximately US$ 190,018 thousand), a decrease from RMB 1,656,276 thousand as of December 31, 2022[4]. - Total current liabilities decreased to RMB 193,816 thousand (approximately US$ 26,728 thousand) as of June 30, 2023, from RMB 220,642 thousand as of December 31, 2022[4]. - The accumulated deficit increased to RMB 1,923,943 thousand (approximately US$ 265,324 thousand) as of June 30, 2023, compared to RMB 1,625,281 thousand as of December 31, 2022[4]. - Total shareholders' equity decreased to RMB 1,136,719 thousand (approximately US$ 156,760 thousand) as of June 30, 2023, from RMB 1,375,765 thousand as of December 31, 2022[4]. - Cash and cash equivalents at the end of the period decreased to RMB 1,184,430 from RMB 1,535,118 at the beginning of the year, representing a decline of 22.9%[12]. Research and Development - Research and development expenses for the first half of 2023 were RMB 241,309 thousand (approximately US$ 33,278 thousand), slightly higher than RMB 238,895 thousand in the same period of 2022[6]. - The Group's research and development expenses include costs related to pre-clinical testing and clinical trials, with no specific figures provided for total expenses in the documents reviewed[71]. - Research and development expenses for the six months ended June 30, 2023, were RMB 3,230, compared to RMB 644 for the same period in 2022, indicating a significant increase in investment in R&D[137]. Cash Flow and Financing - Net cash used in operating activities increased to RMB 281,808 for the six months ended June 30, 2023, compared to RMB 204,710 in the prior year, reflecting a 37.5% increase[12]. - Cash flows from investing activities showed a net cash used of RMB 7,117 for the six months ended June 30, 2023, a decrease of 96.3% from RMB 193,181 in the prior year[12]. - Proceeds from bank borrowings decreased to RMB 35,000 in the first half of 2023 from RMB 49,600 in the same period of 2022, a decline of 29.5%[12]. - The Company closed a private placement on August 10, 2023, raising $100 million from the issuance of 138,900,000 ordinary shares and warrants, with potential additional proceeds of $50 million if the warrants are fully exercised[147]. Shareholder Information - The weighted average number of ordinary shares used in the calculation of net loss per share was 339,951,916 for the six months ended June 30, 2023[6]. - The total number of ordinary shares outstanding increased to 340,655,139 as of June 30, 2023, from 338,498,819 as of December 31, 2022, reflecting an increase of about 0.64%[122][123]. - Incremental shares on share options and RSUs increased from 1,241,772 in 2022 to 1,455,957 in 2023, suggesting a rise in potential dilution from equity compensation[141]. Legal and Compliance - The Group's management believes that the contractual arrangements with the VIE are in compliance with PRC laws and are legally enforceable, despite uncertainties in interpretation[31]. - The Group may face substantial uncertainties if future legislations require actions regarding existing contractual arrangements with the VIE[32]. - The Group is not currently involved in any legal or administrative proceedings that may materially impact its business or financial position, indicating a stable operational environment[145]. Other Financial Metrics - Interest income increased significantly to RMB 19,895 thousand (approximately US$ 2,744 thousand) for the six months ended June 30, 2023, compared to RMB 5,198 thousand in the same period of 2022[6]. - The company recognized other subsidies of RMB 6,104 for the six months ended June 30, 2023, compared to RMB 1,798 for the same period in 2022, indicating a significant increase[74]. - Employee benefit expenses for the six months ended June 30, 2023, were approximately RMB 9.25 million, compared to RMB 10.2 million for the same period in 2022, reflecting a decrease of about 9.3%[88].