Recent Business Highlights
Received College of American Pathologists (CAP) Accreditation for its laboratory inMaryland .- Presented 27 new research abstracts at the 2022
American Society of Clinical Oncology (ASCO) Annual Meeting andAmerican Association for Cancer Research (AACR) 2022 Annual Meeting, highlightingGenetron Health's patented One-Step™ Seq Method and core products including Onco PanScan™, for use in full-cycle cancer management. - Launched the Genetron Health Cancer Early Screening Center, and the Genetron Health Future Science and Technology Experience Hall in
Wuxi ,Jiangsu Province of East China. The new facilities will further support the development of national projects for early screening for comprehensive prevention & control of liver cancer and the "rural revitalization - medical help" project, as well as to promote the development of science popularization. - Launched Onco SonarTM, a 170-gene pan-cancer solid tumor NGS liquid biopsy assay, which includes 106 genes of strong clinical significance and 64 genes that occur in high frequency in main cancer populations. The assay enables informed treatment decisions for advanced solid-tumor cancer patients and identifies treatment options or suitable clinical trials for patients before first-line therapy or amid disease progression.
- Received CE mark for two new tests, Human B Lymphocyte Minimal Residual Disease Testing Kit Seq-MRD® and FusionScan Plus Kit for Human Multi-Genes.
- Continued to advance in-hospital efforts with 62 hospital partners, of which 31 were IVD in-hospital partners as of
June 30, 2022 . - Launched COVID-19 testing services in May as part of the local community's routine efforts to manage the pandemic in
Beijing .
Second Quarter 2022 Financial Highlights
- Generated total revenue of
RMB 137.7 million (US$20.6 million ) in the second quarter of 2022, representing a 1.9% decrease over the same period in 2021.- LDT revenue was
RMB 114.9 million (US$17.1 million ), representing a 31.8% increase over the same period in 2021, includingRMB 48.9 million (US$7.3 million ) of COVID-19 testing service revenue. - IVD revenue was
RMB 9.3 million (US$1.4 million ), representing a 78.8% decrease year-over-year. - Development services revenue was
RMB 13.6 million (US$2.0 million ), representing a 42.8% increase over the same period in 2021.
- LDT revenue was
Second Quarter 2022 Unaudited Financial Results
Total revenue for the second quarter of 2022 decreased by 1.9% to
Diagnosis and monitoring revenue decreased by 5.2% to
- Revenue generated from the provision of LDT services increased by 31.8% to
RMB 114.9 million (US$17.1 million ) during the second quarter of 2022 fromRMB 87.1 million in the same period of 2021. This increase was primarily driven by the COVID-19 testing service revenue ofRMB 48.9 million (US$7.3 million ), which was included in our second quarter sales of LDT services and offset by decreases in diagnosis and monitoring and early screening services. LDT diagnostic tests, excluding COVID-19 testing, sold in the second quarter 2022 totaled approximately 5,292 units, representing a decrease of 22.6% compared to the number of LDT diagnostic tests sold in the same period of 2021. The decrease was primarily driven by the COVID-19 pandemic situation in major Chinese cities. - Revenue generated from the sale of IVD products decreased by 78.8% to
RMB 9.3 million (US$1.4 million ) in the second quarter of 2022 fromRMB 43.8 million in the second quarter of 2021. The decrease was primarily driven by the COVID-19 pandemic situation in major Chinese cities.
Revenue generated from development services increased by 42.8% to
Gross profit decreased by 40.6% to
Operating expenses increased by 16.2% to
Selling expenses increased by 7.0% to
Administrative expenses increased by 10.2% to
Research and development expenses increased by 9.8% to
As a result of the above, operating loss was
Finance costs-net increased to
Loss for the period was
Non-IFRS loss for the period, defined as loss for the period excluding share-based compensation expenses, was
Basic loss per ordinary share for loss attributable to owners of the Company was
Cash and cash equivalents and current financial assets at fair value through profit or loss were
On
Exchange Rate Information
All translations made in the financial statements or elsewhere in this press release made from RMB into
Non-IFRS Financial Measures
The Company uses non-IFRS loss and non-IFRS loss per share for loss attributable to owners of the Company for the year/period, which are non-IFRS financial measures, in evaluating its operating results and for financial and operational decision-making purposes. The Company believes that non-IFRS loss and non-IFRS loss per share for loss attributable to owners of the Company help identify underlying trends in the Company's business that could otherwise be distorted by the effect of certain expenses that the Company includes in its loss for the year/period. The Company believes that non-IFRS loss and non-IFRS loss per share for loss attributable to owners of the Company for the year/period provide useful information about its results of operations, enhances the overall understanding of its past performance and future prospects and allows for greater visibility with respect to key metrics used by its management in its financial and operational decision-making.
Non-IFRS loss and non-IFRS loss per share for loss attributable to owners of the Company for the year/period should not be considered in isolation or construed as an alternative to operating profit, loss for the year/period or any other measure of performance or as an indicator of its operating performance. Investors are encouraged to review non-IFRS loss and non-IFRS loss per share for loss attributable to owners of the Company for the year/period and the reconciliation to its most directly comparable IFRS measures. Non-IFRS loss and non-IFRS loss per share for loss attributable to owners of the Company for the year/period presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company's data. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.
Non-IFRS loss and non-IFRS loss per share for loss attributable to owners of the Company for the year/period represent loss for the year/period excluding share-based compensation expenses, fair value change of financial instruments with preferred rights and other loss of financial instruments with preferred rights (if applicable).
Please see the "Unaudited Non-IFRS Financial Measures" included in this press release for a full reconciliation of non-IFRS loss for the year/period to loss for the year/period and non-IFRS loss per share for loss attributable to owners of the Company for the year/period to loss per share for loss attributable to owners of the Company for the year/period.
About
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
Investor Relations Contact
US:
Principal |
ir@genetronhealth.com
Media Relations Contact
yuxin.shou@genetronhealth.com
ICR
Edmond.Lococo@icrinc.com
Mobile: +86 138-1079-1408
genetron.pr@icrinc.com
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS
For the three months ended | For the six months ended | ||||||||||||||||
RMB’000 | RMB’000 | US$’000 | RMB’000 | RMB’000 | US$’000 | ||||||||||||
Revenue | 140,485 | 137,749 | 20,565 | 232,546 | 248,070 | 37,036 | |||||||||||
Cost of revenue | (46,021 | ) | (81,656 | ) | (12,191 | ) | (83,533 | ) | (130,507 | ) | (19,484 | ) | |||||
Gross profit | 94,464 | 56,093 | 8,374 | 149,013 | 117,563 | 17,552 | |||||||||||
Selling expenses | (88,516 | ) | (94,695 | ) | (14,137 | ) | (148,187 | ) | (185,539 | ) | (27,700 | ) | |||||
Administrative expenses | (54,577 | ) | (60,136 | ) | (8,978 | ) | (99,180 | ) | (110,378 | ) | (16,479 | ) | |||||
Research and development expenses | (56,162 | ) | (61,641 | ) | (9,203 | ) | (106,136 | ) | (141,200 | ) | (21,081 | ) | |||||
Net impairment losses on financial and contract assets | (3,474 | ) | (8,749 | ) | (1,306 | ) | (13,304 | ) | (21,848 | ) | (3,262 | ) | |||||
Other income and gains/(losses) - net | 8,081 | (989 | ) | (148 | ) | 8,611 | (8,603 | ) | (1,284 | ) | |||||||
Operating expenses | (194,648 | ) | (226,210 | ) | (33,772 | ) | (358,196 | ) | (467,568 | ) | (69,806 | ) | |||||
Operating loss | (100,184 | ) | (170,117 | ) | (25,398 | ) | (209,183 | ) | (350,005 | ) | (52,254 | ) | |||||
Finance income | 9,447 | 541 | 81 | 5,179 | 1,412 | 211 | |||||||||||
Finance costs | (1,409 | ) | (66,602 | ) | (9,943 | ) | (3,180 | ) | (62,479 | ) | (9,328 | ) | |||||
Finance income/(costs) - net | 8,038 | (66,061 | ) | (9,862 | ) | 1,999 | (61,067 | ) | (9,117 | ) | |||||||
Loss before income tax | (92,146 | ) | (236,178 | ) | (35,260 | ) | (207,184 | ) | (411,072 | ) | (61,371 | ) | |||||
Income tax expense | - | - | - | - | - | - | |||||||||||
Loss for the period | (92,146 | ) | (236,178 | ) | (35,260 | ) | (207,184 | ) | (411,072 | ) | (61,371 | ) | |||||
Loss attributable to: | |||||||||||||||||
Owners of the Company | (91,820 | ) | (235,215 | ) | (35,116 | ) | (204,574 | ) | (409,587 | ) | (61,149 | ) | |||||
Non-controlling interests | (326 | ) | (963 | ) | (144 | ) | (2,610 | ) | (1,485 | ) | (222 | ) | |||||
(92,146 | ) | (236,178 | ) | (35,260 | ) | (207,184 | ) | (411,072 | ) | (61,371 | ) | ||||||
Loss per share for loss attributable to owners of the Company | RMB | RMB | USD | RMB | RMB | USD | |||||||||||
-Basic and diluted | (0.20 | ) | (0.51 | ) | (0.08 | ) | (0.45 | ) | (0.88 | ) | (0.13 | ) | |||||
Loss per ADS for loss attributable to owners of the Company | |||||||||||||||||
-Basic and diluted | (1.00 | ) | (2.54 | ) | (0.38 | ) | (2.23 | ) | (4.42 | ) | (0.66 | ) | |||||
Shares used in loss per share computation: | |||||||||||||||||
-Basic and diluted | 459,903,803 | 463,590,375 | 463,590,375 | 458,999,227 | 463,231,584 | 463,231,584 | |||||||||||
ADS used in loss per ADS computation: | |||||||||||||||||
-Basic and diluted | 91,980,761 | 92,718,075 | 92,718,075 | 91,799,845 | 92,646,316 | 92,646,316 |
UNAUDITED NON-IFRS FINANCIAL MEASURE
For the three months ended | For the six months ended | ||||||||||||||||
RMB’000 | RMB’000 | US$’000 | RMB’000 | RMB’000 | US$’000 | ||||||||||||
Loss for the period | (92,146 | ) | (236,178 | ) | (35,260 | ) | (207,184 | ) | (411,072 | ) | (61,371 | ) | |||||
Adjustments: | |||||||||||||||||
Share-based compensation | 12,504 | 8,144 | 1,216 | 21,754 | 19,488 | 2,909 | |||||||||||
Non-IFRS Loss | (79,642 | ) | (228,034 | ) | (34,044 | ) | (185,430 | ) | (391,584 | ) | (58,462 | ) | |||||
Attributable to: | |||||||||||||||||
Owners of the Company | (79,316 | ) | (227,071 | ) | (33,900 | ) | (182,820 | ) | (390,099 | ) | (58,240 | ) | |||||
Non-controlling interests | (326 | ) | (963 | ) | (144 | ) | (2,610 | ) | (1,485 | ) | (222 | ) | |||||
(79,642 | ) | (228,034 | ) | (34,044 | ) | (185,430 | ) | (391,584 | ) | (58,462 | ) | ||||||
Non-IFRS loss per share for loss attributable to owners of the Company | RMB | RMB | USD | RMB | RMB | USD | |||||||||||
-Basic and diluted | (0.17 | ) | (0.49 | ) | (0.07 | ) | (0.40 | ) | (0.84 | ) | (0.13 | ) | |||||
Non-IFRS loss per ADS(5 ordinary shares equal to 1 ADS) for loss attributable to owners of the Company | |||||||||||||||||
-Basic and diluted | (0.86 | ) | (2.45 | ) | (0.37 | ) | (1.99 | ) | (4.21 | ) | (0.63 | ) | |||||
Shares used in non-IFRS loss per share computation: | |||||||||||||||||
-Basic and diluted | 459,903,803 | 463,590,375 | 463,590,375 | 458,999,227 | 463,231,584 | 463,231,584 | |||||||||||
ADS used in non-IFRS loss per ADS computation: | |||||||||||||||||
-Basic and diluted | 91,980,761 | 92,718,075 | 92,718,075 | 91,799,845 | 92,646,316 | 92,646,316 |
UNAUDITED REVENUE AND SEGMENT INFORMATION
Diagnosis and monitoring | Diagnosis and monitoring | Development services | Total | ||||
- provision of LDT services | - sale of IVD products | ||||||
RMB’000 | RMB’000 | RMB’000 | RMB’000 | ||||
Three months ended | |||||||
Revenue | 87,138 | 43,827 | 9,520 | 140,485 | |||
Segment profit | 61,890 | 31,312 | 1,262 | 94,464 | |||
Three months ended | |||||||
Revenue | 114,872 | 9,283 | 13,594 | 137,749 | |||
Segment profit | 48,236 | 4,681 | 3,176 | 56,093 | |||
Six months ended | |||||||
Revenue | 158,966 | 59,093 | 14,487 | 232,546 | |||
Segment profit | 110,701 | 36,534 | 1,778 | 149,013 | |||
Six months ended | |||||||
Revenue | 196,383 | 27,307 | 24,380 | 248,070 | |||
Segment profit | 100,287 | 13,615 | 3,661 | 117,563 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As of | As of | |||||
RMB’000 | RMB’000 | US$’000 | ||||
ASSETS | ||||||
Non-current assets | ||||||
Property, plant and equipment | 110,285 | 155,414 | 23,203 | |||
Right-of-use assets | 52,074 | 49,634 | 7,410 | |||
Intangible assets | 20,695 | 27,892 | 4,164 | |||
Financial assets at fair value through profit or loss | 49,780 | 49,201 | 7,346 | |||
Prepayments | 37,610 | 31,460 | 4,697 | |||
Total non-current assets | 270,444 | 313,601 | 46,820 | |||
Current assets | ||||||
Inventories | 35,603 | 55,023 | 8,215 | |||
Contract assets | 7,775 | 9,888 | 1,476 | |||
Other current assets | 30,705 | 29,886 | 4,462 | |||
Trade receivables | 282,113 | 309,056 | 46,141 | |||
Other receivables and prepayments | 97,895 | 113,020 | 16,873 | |||
Amounts due from related parties | 597 | 212 | 32 | |||
Financial assets at fair value through profit or loss | 151,443 | 145,128 | 21,667 | |||
Derivative financial instruments | 2,002 | - | - | |||
Cash and cash equivalents | 639,042 | 327,551 | 48,902 | |||
Total current assets | 1,247,175 | 989,764 | 147,768 | |||
Total assets | 1,517,619 | 1,303,365 | 194,588 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
As of | As of | ||||||||
RMB’000 | RMB’000 | US$’000 | |||||||
LIABILITIES | |||||||||
Non-current liabilities | |||||||||
Borrowings | - | 19,194 | 2,866 | ||||||
Lease liabilities | 33,865 | 29,967 | 4,474 | ||||||
Other non-current liabilities | 8,612 | 9,181 | 1,371 | ||||||
Total non-current liabilities | 42,477 | 58,342 | 8,711 | ||||||
Current liabilities | |||||||||
Trade payables | 55,767 | 53,687 | 8,015 | ||||||
Contract liabilities | 11,962 | 25,996 | 3,881 | ||||||
Other payables and accruals | 157,232 | 157,172 | 23,465 | ||||||
Amounts due to related parties | 3 | 1,307 | 195 | ||||||
Borrowings | 19,554 | 89,958 | 13,430 | ||||||
Lease liabilities | 20,572 | 21,978 | 3,281 | ||||||
Total current liabilities | 265,090 | 350,098 | 52,267 | ||||||
Total liabilities | 307,567 | 408,440 | 60,978 | ||||||
Net assets | 1,210,052 | 894,925 | 133,610 | ||||||
SHAREHOLDERS’ EQUITY | |||||||||
Equity attributable to owners of the Company | |||||||||
Share capital | 61 | 61 | 9 | ||||||
Share premium | 6,711,234 | 6,717,362 | 1,002,876 | ||||||
Other reserves | (69,091 | ) | 20,726 | 3,095 | |||||
Accumulated losses | (5,436,613 | ) | (5,846,200 | ) | (872,814 | ) | |||
1,205,591 | 891,949 | 133,166 | |||||||
Non-controlling interests | 4,461 | 2,976 | 444 | ||||||
Total shareholders’ equity | 1,210,052 | 894,925 | 133,610 |
Source:
2022 GlobeNewswire, Inc., source