Operating expenses were RMB1,032.5 million (US$145.4 million) for 2023, representing a 24.1% decrease from RMB1,360.4 million for 2022.
-- Research and development expenses were RMB347.0 million (US$48.9 million)
for 2023, representing a 17.7% decrease from RMB421.9 million for 2022,
primarily due to (i) a decrease in the expenditure for detection research,
(ii) a decrease in royalty and license fee, and (iii) a decrease in staff
cost resulted from the reorganization of our research and development
department to improve operating efficiency.
-- Selling and marketing expenses were RMB247.7 million (US$34.9 million)
for 2023, representing a 33.1% decrease from RMB370.3 million for 2022,
primarily due to (i) a decrease in staff cost resulted from the
reorganization of our sales department to improve operating efficiency,
(ii) a decrease in marketing and conference fee; and (iii) a decrease in
entertainment fee.
-- General and administrative expenses were RMB437.8 million (US$61.7
million) for 2023, representing a 23.0% decrease from RMB568.3 million
for 2022, primarily due to (i) a decrease in professional service fee;
(ii) a decrease in allowance for doubtful accounts resulting from
accelerated settlement with customers with long aging accounts
receivable; and (iii) a decrease in staff cost resulted from the
reorganization of our general and administrative department to improve
operating efficiency.
Net loss was RMB653.7 million (US$92.1 million) for 2023, compared to RMB971.2 million for 2022.
2024 Financial Guidance
We currently expect to achieve breakeven (measured by non-GAAP gross profit minus non-GAAP SG&A) in the first half of 2024.
Non-GAAP gross profit refers to gross profit excluding depreciation and amortization. Non-GAAP SG&A refers to selling and marketing expenses and general and administrative expenses, both excluding their respective share-based compensation and depreciation and amortization.
Conference Call Information
Burning Rock will host a conference call to discuss the fourth quarter and full year 2023 financial results at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Hong Kong time) on March 29, 2024.
Please register in advance of the conference using the link provided below and dial in 15 minutes prior to the call, using participant dial-in numbers and unique registrant ID which would be provided upon registering.
PRE-REGISTER LINK: https://register.vevent.com/register/BIa8b469b65e8e428e942decdf0c4c6687.
Additionally, a live and archived webcast of the conference call will also be available on the company's investor relations website at http://ir.brbiotech.com or through link https://edge.media-server.com/mmc/p/hrphgr99.
A replay of the webcast will be available for 12 months via the same link above.
About Burning Rock
Burning Rock Biotech Limited (NASDAQ: BNR and LSE: BNR), whose mission is to guard life via science, focuses on the application of next generation sequencing $(NGS)$ technology in the field of precision oncology. Its business consists of i) NGS-based therapy selection testing for late-stage cancer patients, and ii) cancer early detection, which has moved beyond proof-of-concept R&D into the clinical validation stage.
For more information about Burning Rock, please visit: ir.brbiotech.com.
Safe Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "confident" and similar statements. Burning Rock may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Burning Rock's beliefs and expectations, are forward-looking statements. Such statements are based upon management's current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond Burning Rock's control. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those contained in any such statements. All information provided in this press release is as of the date of this press release, and Burning Rock does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Non-GAAP Measures
In evaluating the business, the company considers and uses non-GAAP measures, such as non-GAAP gross profit and non-GAAP gross margin, as supplemental measures to review and assess operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The company defines non-GAAP gross profit as gross profit excluding depreciation and amortization. The company defines non-GAAP gross margin as gross margin excluding depreciation and amortization.
The company presents these non-GAAP financial measures because they are used by management to evaluate operating performance and formulate business plans. The company believe non-GAAP gross profit and non-GAAP gross margin excluding non-cash impact of depreciation and amortization reflect the company's ongoing business operations in a manner that allows more meaningful period-to-period comparisons.
Contact: IR@brbiotech.com
Selected Operating Data
As of
--------------------------------------------------------------------
March June December March June December
31, 30, September 31, 31, 30, September 31,
2022 2022 30, 2022 2022 2023 2023 30, 2023 2023
----- ---- --------- -------- ----- ---- --------- --------
In-hospital
Channel:
Pipeline
partner
hospitals(1) 24 25 22 28 29 30 29 28
Contracted
partner
hospitals(2) 41 43 47 49 49 50 55 59
Total number
of partner
hospitals 65 68 69 77 78 80 84 87
(1) Refers to hospitals that are in the process of
establishing in-hospital laboratories, laboratory
equipment procurement or installation, staff training
or pilot testing using the Company's products.
(2) Refers to hospitals that have entered into contracts
to purchase the Company's products for use on a recurring
basis in their respective in-hospital laboratories
the Company helped them establish. Kit revenue is
generated from contracted hospitals.
Selected Financial Data
For the three months ended
------------------------------------------------------------------------------
March June December March June December
31, 30, September 31, 31, 30, September 31,
Revenues 2022 2022 30, 2022 2022 2023 2023 30, 2023 2023
------- ------- --------- -------- ------- ------- --------- --------
(RMB in thousands)
Central
laboratory
channel 74,211 78,597 89,992 71,970 61,804 66,239 53,481 51,288
In-hospital
channel 48,957 34,177 49,636 42,526 51,561 53,835 54,496 28,809
Pharma
research
and
development
channel 12,356 18,072 15,003 27,741 29,151 26,194 19,589 40,988
Total
revenues 135,524 130,846 154,631 142,237 142,516 146,268 127,566 121,085
For the three months ended
---------------------------------------------------------------------------
March June December March June December
31, 30, September 31, 31, 30, September 31,
Gross profit 2022 2022 30, 2022 2022 2023 2023 30, 2023 2023
------ ------ --------- -------- ------ ------- --------- --------
(RMB in thousands)
Central
laboratory
channel 50,574 57,575 69,991 54,507 48,090 51,876 41,487 41,886
In-hospital
channel 33,396 20,012 31,593 26,999 34,409 33,353 35,459 12,910
Pharma
research
and
development
channel 3,610 5,015 7,010 19,757 16,273 15,193 8,974 23,317
Total gross
profit 87,580 82,602 108,594 101,263 98,772 100,422 85,920 78,113
For the three months ended
--------------------------------------------------------------------------
Share-based March June December March June December
compensation 31, 30, September 31, 31, 30, September 31,
expenses 2022 2022 30, 2022 2022 2023 2023 30, 2023 2023
(MORE TO FOLLOW) Dow Jones Newswires
March 28, 2024 17:16 ET (21:16 GMT)
Comments