Genetron Health Reports Second Quarter 2020 Unaudited Financial Results
BEIJING,
Second Quarter 2020 Unaudited Financial and Operating Highlights
- Recorded total revenue of
RMB101.7 million for the second quarter 2020, representing a 40.3% increase over the same period of 2019.
- Reported diagnosis and monitoring revenue of
RMB 93.9 million for the second quarter 2020, representing a 52.1% increase from the same period of 2019.
- Reported gross margin improved to 63.1% for the second quarter 2020, compared to 47.8% in the same period of 2019.
- Presented data at the American Association for Cancer Research (AACR) Virtual Annual Meeting II that highlighted Genetron Health’s industry-leading technological capability.
- Deepened collaboration with Thermo Fisher Scientific for joint marketing in
China .
- Received
US FDA approval for emergency use of Genetron SARS-CoV-2 RNA Test inJune 2020 .
- Strengthened the leadership team by appointing the former
U.S. FDA senior officer,Yun-Fu Hu , PhD, as Chief Medical Officer.
- Successfully completed the initial public offering (“IPO”) in
June 2020 and raised approximatelyUS$235.0 million of net proceeds.
“During the second quarter of 2020, our business rebounded as economic and social activities gradually resumed in
“Looking ahead to the second half of 2020, while we are confident about our fundamental business, and the strength of our balance sheet following our successful IPO, the COVID-19 pandemic continues to present uncertainties and challenges to all industry players, including us. We will continue to stay nimble in the face of changing market conditions, and our long term growth strategies also remain intact. We intend to continue to expand our product portfolio for diagnosis and monitoring, develop our high-value early screening pipeline assets, and to work with additional biopharmaceutical partners. It is our goal to focus on the creation of long term shareholder value as we expand our precision oncology platform,” concluded
Second Quarter 2020 Unaudited Financial Results
Total revenue for the second quarter 2020 increased by 40.3% to
Diagnosis and monitoring revenue increased by 52.1% to
- Revenue generated from the provision of LDT services increased by 30.7% to
RMB75.8 million (US$10.7 million ) during the second quarter 2020 fromRMB58.0 million in the same period of 2019. LDT diagnostic tests sold in the second quarter 2020 totaled approximately 6,700 units, representing an increase of 15% compared to the number of LDT diagnostic tests sold in the same period of 2019. The average selling price also increased, attributable to a shift to higher value products such as Genetron Health’s Onco PanScan™.
- Revenue generated from sale of IVD (In-vitro diagnostic) products increased by 381.4% to
RMB18.1 million (US$2.6 million ) in the second quarter 2020 fromRMB3.8 million in the second quarter 2019. The increase was mainly driven by the increase in the number of assays and sequencing platforms sold in the second quarter 2020, notably the Genetron S5 instrument and Lung 8 Assay.
Revenue generated from development services decreased by 27.3% to
Despite higher revenue, cost of revenue remained relatively stable at
Gross profit increased by 85.3% to
Operating expenses increased by 15.6% to
Selling expenses decreased by 7.1% to
Administrative expenses increased by 0.2% to
Research and development expenses increased by 55.7% to
Other income-net was
As a result of the above, operating loss decreased by 20.6% to
The Company recorded
Net loss for the period was
Non-IFRS net loss for the period, defined as net loss for the period excluding share-based compensation expenses, fair value change and other loss of financial instruments with preferred rights, was
Basic net loss per ordinary share was
Cash, cash equivalents and financial assets at fair value were
Conference Call
A conference call and webcast to discuss the results will be held at
+1 845-675-0437 | |
China Domestic: | 400-620-8038 |
+852-3018-6771 | |
International: | +65-6713-5090 |
Conference ID: | 1969177 |
Participants are encouraged to dial into the call at least 15 minutes in advance due to high call volumes.
The replay will be accessible through
+1-646-254-3697 | |
International: | +61-2-8199-0299 |
Conference ID: | 1969177 |
A simultaneous webcast of the conference call will be available on the "News and Events" page of the Investors section of the Company's website. A replay of the webcast will be available for 30 days following the event. For more information, please visit ir.genetronhealth.com.
About
Safe Harbor Statement
This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the
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 net loss and non-IFRS net loss per ordinary share 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 net loss and non-IFRS net loss per ordinary share 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 net loss and non-IFRS net loss per ordinary share 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 net loss and non-IFRS net loss per ordinary share for the year/period should not be considered in isolation or construed as an alternative to operating profit, net 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 net loss and non-IFRS net loss per ordinary share for the year/period and the reconciliation to its most directly comparable IFRS measures. Non-IFRS net loss and non-IFRS net loss per ordinary share 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 net loss and non-IFRS net loss per ordinary share for the year/period represent net 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 Measure” included in this press release for a full reconciliation of non-IFRS net loss for the year/period to net loss for the year/period and non-IFRS net loss per ordinary share for the year/period to net loss per ordinary share for the year/period.
Investor Relations Contact
US:
Head of Investor Relations
Email: hoki.luk@genetronhealth.com
Phone: +1 (408) 891-9255
Westwicke, an
Email: Stephanie.Carrington@westwicke.com
Office: +1 (646) 277-1282
Email: bill.zima@icrinc.com
ir@genetronhealth.com
Media Relations Contact
ICR
Edmond.Lococo@icrinc.com
Mobile: +86 138-1079-1408
pr@genetronhealth.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 | 72,490 | 101,735 | 14,400 | 139,141 | 178,578 | 25,276 | |||||||
Cost of revenue | (37,832 | ) | (37,512 | ) | (5,309 | ) | (75,917 | ) | (72,117 | ) | (10,207 | ) | |
─────── | ─────── | ─────── | ─────── | ─────── | ─────── | ||||||||
Gross profit | 34,658 | 64,223 | 9,091 | 63,224 | 106,461 | 15,069 | |||||||
------------- | ------------- | ------------- | ------------- | ------------- | ------------- | ||||||||
Selling expenses | (65,248 | ) | (60,618 | ) | (8,580 | ) | (118,833 | ) | (114,442 | ) | (16,198 | ) | |
Administrative expenses | (27,848 | ) | (27,906 | ) | (3,950 | ) | (55,055 | ) | (49,529 | ) | (7,010 | ) | |
Research and development expenses |
(19,168 | ) | (29,845 | ) | (4,224 | ) | (38,584 | ) | (57,474 | ) | (8,135 | ) | |
Net impairment losses on financial and contract assets |
244 | (267 | ) | (38 | ) | (405 | ) | (990 | ) | (140 | ) | ||
Other income/(loss) - net | 10,471 | 1,270 | 180 | 11,554 | (4,332 | ) | (613 | ) | |||||
─────── | ─────── | ─────── | ─────── | ─────── | ─────── | ||||||||
Operating expenses | (101,549 | ) | (117,366 | ) | (16,612 | ) | (201,323 | ) | (226,767 | ) | (32,096 | ) | |
─────── | ─────── | ─────── | ─────── | ─────── | ─────── | ||||||||
Operating loss | (66,891 | ) | (53,143 | ) | (7,521 | ) | (138,099 | ) | (120,306 | ) | (17,027 | ) | |
------------- | ------------- | ------------- | ------------- | ------------- | ------------- | ||||||||
Finance income | 84 | 198 | 28 | 412 | 228 | 32 | |||||||
Finance costs | (1,068 | ) | (827 | ) | (117 | ) | (1,469 | ) | (4,375 | ) | (619 | ) | |
─────── | ─────── | ─────── | ─────── | ─────── | ─────── | ||||||||
Finance costs - net | (984 | ) | (629 | ) | (89 | ) | (1,057 | ) | (4,147 | ) | (587 | ) | |
Fair value loss of financial instruments with preferred rights |
(67,813 | ) | (2,778,591 | ) | (393,284 | ) | (128,007 | ) | (2,823,370 | ) | (399,622 | ) | |
─────── | ─────── | ─────── | ─────── | ─────── | ─────── | ||||||||
Loss before income tax | (135,688 | ) | (2,832,363 | ) | (400,894 | ) | (267,163 | ) | (2,947,823 | ) | (417,236 | ) | |
Income tax expense | - | - | - | - | - | - | |||||||
─────── | ─────── | ─────── | ─────── | ─────── | ─────── | ||||||||
Loss for the period | (135,688 | ) | (2,832,363 | ) | (400,894 | ) | (267,163 | ) | (2,947,823 | ) | (417,236 | ) | |
═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ||||||||
Loss attributable to: | |||||||||||||
Owners of the Company | (135,688 | ) | (2,832,363 | ) | (400,894 | ) | (267,163 | ) | (2,947,823 | ) | (417,236 | ) | |
═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ||||||||
Loss per share | RMB | RMB | USD | RMB | RMB | USD | |||||||
-Basic and diluted | (1.09 | ) | (17.04 | ) | (2.41 | ) | (2.18 | ) | (20.25 | ) | (2.87 | ) | |
═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ||||||||
Loss per ADS | |||||||||||||
-Basic and diluted | (85.22 | ) | (12.06 | ) | (101.23 | ) | (14.33 | ) | |||||
═══════ | ═══════ | ═══════ | ═══════ | ||||||||||
Shares used in loss per ordinary share computation: |
|||||||||||||
-Basic and diluted | 124,268,051 | 166,179,400 | 166,179,400 | 122,767,748 | 145,604,263 | 145,604,263 | |||||||
ADS used in loss per ADS computation: |
|||||||||||||
-Basic and diluted | 33,235,880 | 33,235,880 | 29,120,853 | 29,120,853 | |||||||||
UNAUDITED NON-IFRS FINANCIAL MEASURES |
||||||||||||||
For the three months ended, | For the six months ended, | |||||||||||||
June 30, 2020 | |
|||||||||||||
RMB’000 | RMB’000 | US$’000 | RMB’000 | RMB’000 | US$’000 | |||||||||
Loss for the period | (135,688 | ) | (2,832,363 | ) | (400,894 | ) | (267,163 | ) | (2,947,823 | ) | (417,236 | ) | ||
Adjustments: | ||||||||||||||
Share-based compensation |
9,124 | 9,903 | 1,402 | 20,739 | 14,954 | 2,117 | ||||||||
Fair value loss of financial instruments with preferred rights |
67,813 | 2,778,591 | 393,284 | 128,007 | 2,823,370 | 399,622 | ||||||||
─────── | ─────── | ─────── | ─────── | ─────── | ─────── | |||||||||
Non-IFRS Net Loss | (58,751 | ) | (43,869 | ) | (6,208 | ) | (118,417 | ) | (109,499 | ) | (15,497 | ) | ||
═══════ | ═══════ | ═══════ | ═══════ | ═══════ | ═══════ | |||||||||
Attributable to: | ||||||||||||||
Owners of the Company | (58,751 | ) | (43,869 | ) | (6,208 | ) | (118,417 | ) | (109,499 | ) | (15,497 | ) | ||
Non-IFRS loss per share | RMB | RMB | USD | RMB | RMB | USD | ||||||||
-Basic and diluted | (0.47 | ) | (0.26 | ) | (0.04 | ) | (0.96 | ) | (0.75 | ) | (0.11 | ) | ||
Non-IFRS loss per ADS(5 ordinary shares equal to 1 ADS) |
||||||||||||||
-Basic and diluted | (1.32 | ) | (0.19 | ) | (3.76 | ) | (0.53 | ) | ||||||
Shares used in non-IFRS loss per ordinary share computation: |
||||||||||||||
-Basic and diluted | 124,268,051 | 166,179,400 | 166,179,400 | 122,767,748 | 145,604,263 | 145,604,263 | ||||||||
ADS used in non-IFRS loss per ADS computation: |
||||||||||||||
-Basic and diluted | 33,235,880 | 33,235,880 | 29,120,853 | 29,120,853 | ||||||||||
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 | 57,967 | 3,769 | 10,754 | 72,490 | |||||
Segment profit/(loss) | 36,499 | 1,344 | (3,185 | ) | 34,658 | ||||
Three months ended |
|||||||||
Revenue | 75,772 | 18,145 | 7,818 | 101,735 | |||||
Segment profit | 53,094 | 10,040 | 1,089 | 64,223 | |||||
Six months ended |
|||||||||
Revenue | 108,743 | 4,944 | 25,454 | 139,141 | |||||
Segment profit/(loss) | 66,928 | 1,869 | (5,573 | ) | 63,224 | ||||
Six months ended |
|||||||||
Revenue | 123,348 | 37,358 | 17,872 | 178,578 | |||||
Segment profit/(loss) | 81,749 | 25,388 | (676 | ) | 106,461 | ||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
As at |
As at |
|||||||
RMB’000 | RMB’000 | US$’000 | ||||||
ASSETS | ||||||||
Non-current assets | ||||||||
Property, plant and equipment | 83,013 | 75,397 | 10,672 | |||||
Right-of-use assets | 43,182 | 37,140 | 5,257 | |||||
Intangible assets | 5,482 | 6,604 | 935 | |||||
Prepayments | 12,679 | 9,841 | 1,393 | |||||
──────── | ──────── | ──────── | ||||||
Total non-current assets | 144,356 | 128,982 | 18,257 | |||||
──────── | ──────── | ──────── | ||||||
Current assets | ||||||||
Inventories | 17,896 | 18,192 | 2,575 | |||||
Contract assets | 1,020 | 886 | 125 | |||||
Other current assets | 43,711 | 39,698 | 5,619 | |||||
Trade receivables | 83,757 | 98,640 | 13,962 | |||||
Other receivables and prepayments | 19,526 | 14,843 | 2,100 | |||||
Amounts due from related parties | 1,064 | 827 | 117 | |||||
Financial assets at fair value through profit or loss | 122,224 | 47,722 | 6,755 | |||||
Cash and cash equivalents | 139,954 | 1,843,531 | 260,935 | |||||
──────── | ──────── | ──────── | ||||||
Total current assets | 429,152 | 2,064,339 | 292,188 | |||||
──────── | ──────── | ──────── | ||||||
Total assets | 573,508 | 2,193,321 | 310,445 | |||||
════════ | ════════ | ════════ | ||||||
As at |
As at |
|||||||
RMB’000 | RMB’000 | US$’000 | ||||||
LIABILITIES | ||||||||
Non-current liabilities | ||||||||
Financial instruments with preferred rights | 2,106,334 | - | - | |||||
Borrowings | 3,643 | 1,820 | 258 | |||||
Lease liabilities | 29,124 | 23,538 | 3,332 | |||||
──────── | ──────── | ──────── | ||||||
Total non-current liabilities | 2,139,101 | 25,358 | 3,590 | |||||
──────── | ──────── | ──────── | ||||||
Current liabilities | ||||||||
Trade payables | 49,955 | 37,940 | 5,369 | |||||
Contract liabilities | 18,189 | 5,619 | 795 | |||||
Other payables and accruals | 109,683 | 101,282 | 14,337 | |||||
Amounts due to related parties | 34 | 34 | 5 | |||||
Borrowings | 19,514 | 49,176 | 6,960 | |||||
Lease liabilities | 15,363 | 18,188 | 2,574 | |||||
──────── | ──────── | ──────── | ||||||
Total current liabilities | 212,738 | 212,239 | 30,040 | |||||
──────── | ──────── | ──────── | ||||||
Total liabilities | 2,351,839 | 237,597 | 33,630 | |||||
──────── | ──────── | ──────── | ||||||
Net (liabilities)/assets | (1,778,331 | ) | 1,955,724 | 276,815 | ||||
════════ | ════════ | ════════ | ||||||
SHAREHOLDERS’ (DEFICIT)/EQUITY | ||||||||
(Deficit)/equity attributable to owners of the Company | ||||||||
Share capital | 17 | 59 | 8 | |||||
Share premium | - | 6,657,562 | 942,317 | |||||
(3,578 | ) | (2,374 | ) | (336 | ) | |||
Other reserves | 69,207 | 92,277 | 13,061 | |||||
Accumulated losses | (1,843,977 | ) | (4,791,800 | ) | (678,235 | ) | ||
──────── | ──────── | ──────── | ||||||
Total shareholders’ (deficit)/equity | (1,778,331 | ) | 1,955,724 | 276,815 | ||||
════════ | ════════ | ════════ | ||||||
Source: Genetron Holdings Limited