Burning Rock Reports Unaudited Fourth Quarter and Full Year 2024 Financial Results

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]