Burning Rock Reports Second Quarter 2024 Financial Results

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].