0001104659-23-059794 | 20-F | XBRL Viewer

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Reserves - Additional Information (Details) ¥ in Thousands	12 Months Ended
Reserves - Additional Information (Details) ¥ in Thousands	Dec. 31, 2022 CNY (¥)
Reserves
Capital reserve	¥ 0
Percentage of net profit after offsetting any prior year losses and transfer to the statutory surplus reserve fund	10.00%
Percentage of Statutory reserves balance not exceeds of the company's registered capital	50.00%

Cash flow information - Summary of Reconciliation from Loss before Income Tax to Cash Used In Operations (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Cash flow information
Loss before income tax	¥ (810,630)	$ (117,530)	¥ (502,598)	¥ (3,069,043)
Depreciation on property, plant and equipment	50,693		36,865	33,466
Depreciation on right-of-use assets	22,125		23,821	18,277
Amortization on intangible assets	4,606		2,399	1,452
Loss allowance for trade and other receivables and contract assets	59,010		37,032	14,843
Investment income from wealth management products	(3,366)		(4,925)	(4,182)
Dividends from equity security	(422)		(745)
Fair value loss - net on financial assets at FVPL	19,102		10,133	1,878
Gain on settlement of derivative financial instruments			(8,709)	(1,550)
Loss on disposal of property, plant and equipment	302
Loss on disposal of right-of-use assets	182		846
Gain on disposal of subsidiaries			(2,305)
Amortization on deferred income of ADS depository	(3,756)		(4,373)	(2,405)
Finance (income)/costs - net	110,571		(14,061)	(22,270)
Share-based compensation expenses	17,493		54,144	29,951
Losses related to financial instruments with preferred rights				2,823,370
Others				(110)
Inventories	(6,824)		(10,632)	(7,075)
Contract assets	(10,006)		(7,277)	(50)
Other current assets	21,233		5,795	7,211
Trade receivables	(10,568)		(153,942)	(95,719)
Other receivables and prepayments	24,427		(44,386)	(22,894)
Amounts due from related parties	487		(383)	850
Trade payables	13,729		23,579	(9,073)
Contract liabilities	(2,373)		3,545	(9,772)
Other payables and accruals	43,791		32,054	11,948
Amounts due to related parties	(3)		(21)
Cash used in operations	¥ (460,197)	$ (66,722)	¥ (524,144)	¥ (300,897)

Cash and cash equivalents

12 Months Ended

Dec. 31, 2022

Cash and cash equivalents

Cash and cash equivalents

23.Cash and cash equivalents


	As of December 31,
	2021	2022
	RMB’000	RMB’000
Cash at bank
-RMB deposits	365,613	116,685
-US$deposits	273,402	59,560
-HK$deposits	27	21
	639,042	176,266

Cash at banks earns interest at floating rates based on daily bank deposit rates.

Cash at banks denominated in RMB are deposited with banks in the PRC. The conversion of these RMB-denominated balances into foreign currencies and the remittance of funds out of China are subject to the rules and regulations of foreign exchange control promulgated by the Government of the PRC.

Other payables and accruals (Tables)

12 Months Ended

Dec. 31, 2022

Other payables and accruals

Summary of other payables and accruals


	As of December 31,
	2021	2022
	RMB’000	RMB’000
Payroll and welfare payables	42,612	49,302
Accrued professional service fees	35,368	22,151
Accrued taxes other than income tax	2,583	3,038
Deferred income from ADS depository (Note)	14,995	12,449
Others	61,674	99,066
	157,232	186,006

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY(DEFICIT) ¥ in Thousands, $ in Thousands	Equity attributable to owners of parent CNY (¥)	Share capital CNY (¥)	Share capital USD ($)	Share premium CNY (¥)	Treasury Shares CNY (¥)	Share-based Compensation reserve CNY (¥)	Other reserve CNY (¥)	Other comprehensive losses CNY (¥)	Accumulated losses CNY (¥)	Non-controlling interests. CNY (¥)	CNY (¥)	USD ($)
Opening balance at Dec. 31, 2019		¥ 17	$ 3		¥ (3,578)	¥ 73,440	¥ 24,903	¥ (29,136)	¥ (1,843,977)		¥ (1,778,331)
Comprehensive loss
Loss for the year									(3,069,043)		(3,069,043)
Exchange differences								(151,142)			(151,142)
Changes in fair value of financial instruments with preferred rights due to own credit risk								(72)			(72)
Total comprehensive loss for the year								(151,214)	(3,069,043)		(3,220,257)
Transfer of accumulated fair value change due to own credit risk of financial instruments with preferred rights upon conversion								27,355	(27,355)
Transactions with owners
Conversion of financial instruments with preferred rights into ordinary shares		31	4	¥ 4,999,780							4,999,811
Issuance of ordinary shares		11	2	1,657,782							1,657,793
Vesting of restricted shares					3,578	(8,283)	8,283				3,578
Share-based compensations						29,951					29,951
Total Transactions with owners		42		6,657,562	¥ 3,578	21,668	8,283				6,691,133
Ending balance at Dec. 31, 2020	¥ 1,692,545	59	9	6,657,562		95,108	33,186	(152,995)	(4,940,375)		1,692,545
Comprehensive loss
Loss for the year	(496,238)								(496,238)	¥ (6,360)	(502,598)
Exchange differences	(39,358)							(39,358)			(39,358)
Changes in fair value of financial instruments with preferred rights due to own credit risk											0
Total comprehensive loss for the year	(535,596)							(39,358)	(496,238)	(6,360)	(541,956)
Transactions with owners
Exercise of awards	2,169	2		53,672		(51,505)					2,169
Capital injection from non-controlling interests										10,821	10,821
Others	(7,671)						(7,671)				(7,671)
Share-based compensations	54,144					54,144					54,144
Total Transactions with owners	48,642	2		53,672		2,639	(7,671)			10,821	59,463
Ending balance at Dec. 31, 2021	1,205,591	61	9	6,711,234		97,747	25,515	(192,353)	(5,436,613)	4,461	1,210,052
Comprehensive loss
Loss for the year	(808,403)	0							(808,403)	(2,227)	(810,630)	$ (117,530)
Exchange differences	129,098	0						129,098			129,098
Total comprehensive loss for the year	(679,305)	0						129,098	(808,403)	(2,227)	(681,532)	(98,812)
Transactions with owners
Exercise of awards	843	0		23,671		(22,828)					843
Others	1,500	0					1,500				1,500
Share-based compensations	17,493	0				17,493					17,493
Total Transactions with owners	19,836	0		23,671		(5,335)	1,500				19,836
Ending balance at Dec. 31, 2022	¥ 546,122	¥ 61	$ 9	¥ 6,734,905		¥ 92,412	¥ 27,015	¥ (63,255)	¥ (6,245,016)	¥ 2,234	¥ 548,356	$ 79,504

Financial assets at fair value through profit or loss (Parenthetical) (Details) - CNY (¥) ¥ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2022
Wealth Management Products [Member] \| Bottom of range [member]
Financial assets at fair value through profit or loss
Investment in securities floating interest rate	1.40%		1.40%
Wealth Management Products [Member] \| Top of range [member]
Financial assets at fair value through profit or loss
Investment in securities floating interest rate	3.76%		3.03%
Equity security
Financial assets at fair value through profit or loss
Payment to acquire financial assets at fair value through profit or loss		¥ 14
Other Investments [Member]
Financial assets at fair value through profit or loss
Percentage of other equity interests		30.00%
Payment to acquire financial assets at fair value through profit or loss	¥ 29	¥ 19

Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2022

Summary of significant accounting policies

Summary of financial information of the group's VIEs and subsidiaries of VIEs


	As of December 31,
	2021	2022	2022
	RMB’000	RMB’000	US$’000
			Note 2.5(d)
Non-current assets	189,393	198,809	28,825
Current assets	556,527	507,893	73,638
Total assets	745,920	706,702	102,463
Non-current liabilities	1,402,408	1,650,200	239,257
Current liabilities	267,888	512,288	74,275
Total liabilities	1,670,296	2,162,488	313,532


	Year ended December 31,
	2020	2021	2022	2022
	RMB’000	RMB’000	RMB’000	US$’000
				Note 2.5(d)
Revenue	424,485	534,111	641,190	92,964
Loss for the year	(236,102)	(425,411)	(550,429)	(79,805)
Net cash used in operating activities	(196,594)	(405,910)	(227,234)	(32,947)
Net cash used in investing activities	(9,223)	(52,699)	(79,190)	(11,481)
Net cash generated from financing activities	200,767	529,270	321,870	46,667
Net (decrease)/increase in cash and cash equivalents	(5,050)	70,661	15,446	2,239

Summary of property plant and equipment


Instruments and equipment		3-5 years
Office equipment and furniture		3-5 years
Transporting equipment		4 years
Leasehold improvements		shorter of lease period or 3-10 years

Financial instruments by category

12 Months Ended

Dec. 31, 2022

Financial instruments by category

Financial instruments by category

16.Financial instruments by category


		Financial
	Financial	assets at
Financial assets	assets at FVPL	amortized cost	Total
	RMB’000	RMB’000	RMB’000
As of December 31, 2021

Trade receivables	—	282,113	282,113
Other receivables	—	34,595	34,595
Amounts due from related parties	—	597	597
Financial assets at fair value through profit or loss	201,223	—	201,223
Derivative financial instruments	2,002	—	2,002
Cash and cash equivalents	—	639,042	639,042
	203,225	956,347	1,159,572
As of December 31, 2022

Trade receivables	—	243,123	243,123
Other receivables	—	29,205	29,205
Amounts due from related parties	—	110	110
Financial assets at fair value through profit or loss	207,922	—	207,922
Cash and cash equivalents	—	176,266	176,266
	207,922	448,704	656,626

		Financial
	Financial	liabilities at
Financial liabilities	liabilities at FVPL	amortized cost	Total
	RMB’000	RMB’000	RMB’000
As of December 31, 2021

Borrowings	—	19,554	19,554
Lease liabilities	—	54,437	54,437
Trade payables	—	55,767	55,767
Other payables	—	92,488	92,488
Amounts due to related parties	—	3	3
Other non-current liabilities	—	8,612	8,612
	—	230,861	230,861
As of December 31, 2022

Borrowings	—	116,832	116,832
Lease liabilities	—	41,735	41,735
Trade payables	—	63,048	63,048
Other payables	—	116,160	116,160
Other non-current liabilities	—	9,760	9,760
	—	347,535	347,535

Financial risk management - Credit risk (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
IVD product customers
Financial risk management
Trade receivables and contract assets, gross	¥ 174,140	¥ 202,520
Loss allowance	74,604	31,388
Hospital customers
Financial risk management
Trade receivables and contract assets, gross	70,195	60,835
Loss allowance	20,885	16,843
Other customers
Financial risk management
Trade receivables and contract assets, gross	119,543	79,943
Loss allowance	¥ 10,569	¥ 5,179
Within 6 months \| IVD product customers
Financial risk management
Expected loss rate	15.00%	9.00%
Trade receivables and contract assets, gross	¥ 52,231	¥ 135,288
Loss allowance	¥ 7,990	¥ 11,984
Within 6 months \| Hospital customers
Financial risk management
Expected loss rate	12.00%	13.00%
Trade receivables and contract assets, gross	¥ 12,628	¥ 19,872
Loss allowance	¥ 1,538	¥ 2,504
Within 6 months \| Other customers
Financial risk management
Expected loss rate	3.00%	3.00%
Trade receivables and contract assets, gross	¥ 83,090	¥ 67,076
Loss allowance	¥ 2,798	¥ 1,859
Between 6 months to 1 year \| IVD product customers
Financial risk management
Expected loss rate	38.00%	19.00%
Trade receivables and contract assets, gross	¥ 61,648	¥ 29,937
Loss allowance	¥ 23,403	¥ 5,628
Between 6 months to 1 year \| Hospital customers
Financial risk management
Expected loss rate	14.00%	14.00%
Trade receivables and contract assets, gross	¥ 14,550	¥ 9,784
Loss allowance	¥ 1,980	¥ 1,356
Between 6 months to 1 year \| Other customers
Financial risk management
Expected loss rate	12.00%	12.00%
Trade receivables and contract assets, gross	¥ 29,691	¥ 6,388
Loss allowance	¥ 3,653	¥ 765
Between 1 and 2 years \| IVD product customers
Financial risk management
Expected loss rate	59.00%	34.00%
Trade receivables and contract assets, gross	¥ 41,241	¥ 34,985
Loss allowance	¥ 24,191	¥ 11,896
Between 1 and 2 years \| Hospital customers
Financial risk management
Expected loss rate	26.00%	29.00%
Trade receivables and contract assets, gross	¥ 17,295	¥ 17,046
Loss allowance	¥ 4,571	¥ 4,995
Between 1 and 2 years \| Other customers
Financial risk management
Expected loss rate	46.00%	26.00%
Trade receivables and contract assets, gross	¥ 4,439	¥ 4,344
Loss allowance	¥ 2,035	¥ 1,144
Between 2 to 3 years \| IVD product customers
Financial risk management
Expected loss rate	100.00%	81.00%
Trade receivables and contract assets, gross	¥ 16,710	¥ 2,310
Loss allowance	¥ 16,710	¥ 1,880
Between 2 to 3 years \| Hospital customers
Financial risk management
Expected loss rate	41.00%	55.00%
Trade receivables and contract assets, gross	¥ 16,851	¥ 13,521
Loss allowance	¥ 6,980	¥ 7,376
Between 2 to 3 years \| Other customers
Financial risk management
Expected loss rate	78.00%	54.00%
Trade receivables and contract assets, gross	¥ 1,085	¥ 1,587
Loss allowance	¥ 845	¥ 863
After 3 years \| IVD product customers
Financial risk management
Expected loss rate	100.00%	100.00%
Trade receivables and contract assets, gross	¥ 2,310
Loss allowance	¥ 2,310
After 3 years \| Hospital customers
Financial risk management
Expected loss rate	66.00%	100.00%
Trade receivables and contract assets, gross	¥ 8,871	¥ 612
Loss allowance	¥ 5,816	¥ 612
After 3 years \| Other customers
Financial risk management
Expected loss rate	100.00%	100.00%
Trade receivables and contract assets, gross	¥ 1,238	¥ 548
Loss allowance	¥ 1,238	¥ 548

Inventories

12 Months Ended

Dec. 31, 2022

Inventories

Inventories

17.Inventories


	As of December 31,
	2021	2022
	RMB’000	RMB’000
Raw materials	23,251	34,910
Work-in-progress	2,260	29
Finished goods	10,092	7,488
	35,603	42,427

Inventories recognized as expenses during each of the years ended December 31, 2020, 2021 and 2022 amounted to RMB148,988,000, RMB209,833,000 and RMB231,780,000 respectively, most of which are included in cost of revenue in consolidated statements of loss.

Financial instruments with preferred rights - Additional Information (Details) ¥ in Thousands	12 Months Ended
	Dec. 31, 2020 CNY (¥)
Accumulated losses
Disclosure of financial instruments with preferred rights reorganization [Line Items]
Transfer of accumulated fair value change due to own credit risk of financial instruments with preferred rights upon conversion	¥ (27,355)

Treasury shares

12 Months Ended

Dec. 31, 2022

Treasury shares

Treasury shares

25.Treasury shares

A total of 93,506,000 ordinary shares of the Company held by the Founders were put in escrow with service conditions and vested on monthly basis or by one tranche which are detailed in Note 27(b) and Note 27(c) respectively. As of December 31, 2021 and December 31, 2022, all the ordinary shares in escrow were vested and released.

Share-based payment (Tables)

12 Months Ended

Dec. 31, 2022

Share-based payment

Summary of movements of employee share options during the reported period

Year ended December 31,

2020

2021

2022

Exercise

Number of

Exercise

Number

Exercise

Number of

price

awards

price

of awards

price

awards

(Note (iii))

Outstanding at beginning of the year

US$0.03

23,481,970

US$0.13

26,216,268

US$0.32

17,456,299

Granted during the year

US$0.88

3,035,000

US$0.96

2,701,746

US$0.99

261,045

Exercised during the year

—

US$0.03

(11,164,880)

US$0.03

(3,993,550)

Forfeited (Note (i))

US$0.03

(300,702)

US$0.14

(296,835)

US$0.92

(611,430)

Outstanding at end of the year

US$0.13

26,216,268

US$0.32

17,456,299

US$0.39

13,112,364

Exercisable at end of the year (Note (ii))

US$0.03

14,897,089

US$0.10

10,006,742

US$0.22

9,708,447

Note:

(i)

The shares are forfeited if the employment terminates or the performance condition is not met.

Summary of binominal option-pricing model to determine the fair value of options at each of the grant dates


Year of grant	2020		2021		2022
Fair values at grant date (US$ per share)	1.76-2.38		1.96-4.51		0.00-1.15
Exercise prices (US$ per share)	0.03-0.99		0.03-0.99		0.99
Risk-free interest rates	0.64%-0.67	%	1.48%-1.67	%	3.89%-3.90	%
Dividend yield	nil		nil		nil
Expected volatilities	54.90%-55.10	%	53.40%-55.60	%	61.90%-62.13	%
Expected term	10 years		10 years		10 years

Summary of the movement of the restricted shares


		Number of restricted shares
		of the Company
		(in thousands)

Outstanding at January 1, 2020		7,024
Vested and released		(7,024)
Outstanding at December 31, 2020, 2021 and 2022		—

Summary of share-based compensation expenses


	Year ended December 31,
	2020	2021	2022
	RMB’000	RMB’000	RMB’000
Cost of revenue	300	808	485
Selling expenses	3,906	15,243	5,206
Administrative expenses	15,013	19,346	4,162
Research and development expenses	10,732	18,747	7,640
	29,951	54,144	17,493

Cash flow information - Summary of Reconciliation of Liabilities Arising From Financing Activities (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flow information
Beginning balance	¥ 73,991	¥ 123,677	¥ 2,188,978
Cash received	129,973	73,770	430,290
Cash repaid	(54,919)	(139,266)	(354,668)
Non-cash movements	9,522	15,810	(2,140,923)
Ending balance	158,567	73,991	123,677
Proceeds From Investors Upon Reorganization		48,617	299,051
Financial instruments with preferred rights
Cash flow information
Beginning balance			2,106,334
Cash received			70,026
Non-cash movements			(2,176,360)
Amount due to an investor
Cash flow information
Beginning balance			15,000
Cash received		48,617	299,051
Cash repaid		(48,452)	(314,388)
Non-cash movements		(165)	337
Borrowings
Cash flow information
Beginning balance	19,554	64,076	23,157
Cash received	129,973	25,153	61,213
Cash repaid	(32,979)	(69,106)	(20,703)
Non-cash movements	284	(569)	409
Ending balance	116,832	19,554	64,076
Lease liabilities
Cash flow information
Beginning balance	54,437	59,601	44,487
Cash repaid	(21,940)	(21,708)	(19,577)
Non-cash movements	9,238	16,544	34,691
Ending balance	¥ 41,735	¥ 54,437	¥ 59,601

Summary of significant accounting policies - Financial Information of the group's VIEs and subsidiaries of VIEs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)	Dec. 31, 2022 USD ($)
Summarized condensed financial information of the Group's VIEs and subsidiaries of VIEs
Non-current assets	¥ 266,374,000		¥ 270,444,000		$ 38,620
Current assets	708,952,000		1,247,175,000		102,789
Total assets	975,326,000		1,517,619,000		141,409
Non-current liabilities	37,103,000		42,477,000		5,380
Current liabilities	389,867,000		265,090,000		56,525
Total liabilities	426,970,000		307,567,000		61,905
Revenue	650,706,000	$ 94,344	531,950,000	¥ 424,485,000
Loss for the year	(810,630,000)	(117,530)	(502,598,000)	(3,069,043,000)
Net cash used in operating activities	(460,197,000)	(66,722)	(524,144,000)	(300,897,000)
Net cash used in from investing activities	(87,832,000)	(12,734)	(136,275,000)	(84,649,000)
Net cash generated from financing activities	71,367,000	10,347	(58,405,000)	1,744,512,000
Net increase/(decrease) in cash and cash equivalents	(476,662,000)	(69,109)	(718,824,000)	1,358,966,000
Borrowings	116,832,000		19,554,000
Repayment of loans	32,979,000	4,782	69,106,000	20,703,000
Variable Interest Entity
Summarized condensed financial information of the Group's VIEs and subsidiaries of VIEs
Non-current assets	198,809,000		189,393,000		28,825
Current assets	507,893,000		556,527,000		73,638
Total assets	706,702,000		745,920,000		102,463
Non-current liabilities	1,650,200,000		1,402,408,000		239,257
Current liabilities	512,288,000		267,888,000		74,275
Total liabilities	2,162,488,000		1,670,296,000		$ 313,532
Revenue	641,190,000	92,964	534,111,000	424,485,000
Loss for the year	(550,429,000)	(79,805)	(425,411,000)	(236,102,000)
Net cash used in operating activities	(227,234,000)	(32,947)	(405,910,000)	(196,594,000)
Net cash used in from investing activities	(79,190,000)	(11,481)	(52,699,000)	(9,223,000)
Net cash generated from financing activities	321,870,000	46,667	529,270,000	200,767,000
Net increase/(decrease) in cash and cash equivalents	15,446,000	$ 2,239	70,661,000	(5,050,000)
Borrowings	1,834,631,000		1,449,810,000
Loans advanced	394,740,000		928,600,000	499,424,000
Repayment of loans	¥ 141,507,000		¥ 282,480,000	¥ 0

Revenue and segment information - Summary of revenue and segment information (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Revenue and segment information
Revenue	¥ 650,706	$ 94,344	¥ 531,950	¥ 424,485
Segment profit	281,428	$ 40,804	337,967	260,217
Diagnosis and monitoring - provision of LDT services
Revenue and segment information
Revenue	542,338		337,844	291,702
Segment profit	250,819		231,186	198,170
Diagnosis and monitoring - sale of IVD products
Revenue and segment information
Revenue	60,269		154,543	93,982
Segment profit	24,734		99,993	60,266
Development services
Revenue and segment information
Revenue	48,099		39,563	38,801
Segment profit	¥ 5,875		¥ 6,788	¥ 1,781

- Definition

The income arising in the course of an entity's ordinary activities. Income is increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2022-03-24
-Paragraph 28
-Subparagraph a
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2022-en-r&anchor=para_28_a&doctype=Standard
-URIDate 2022-03-24

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2022-03-24
-Paragraph 23
-Subparagraph a
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2022-en-r&anchor=para_23_a&doctype=Standard
-URIDate 2022-03-24

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2022-03-24
-Paragraph 32
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2022-en-r&anchor=para_32&doctype=Standard
-URIDate 2022-03-24

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2022-03-24
-Paragraph 33
-Subparagraph a
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2022-en-r&anchor=para_33_a&doctype=Standard
-URIDate 2022-03-24

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 8
-IssueDate 2022-03-24
-Paragraph 34
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=8&code=ifrs-tx-2022-en-r&anchor=para_34&doctype=Standard
-URIDate 2022-03-24

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 5
-IssueDate 2022-03-24
-Paragraph 33
-Subparagraph b
-Clause i
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=5&code=ifrs-tx-2022-en-r&anchor=para_33_b_i&doctype=Standard
-URIDate 2022-03-24

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Name IFRS
-Number 12
-IssueDate 2022-03-24
-Paragraph B12
-Subparagraph b
-Clause v
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2022-en-r&anchor=para_B12_b_v&doctype=Appendix&subtype=B
-URIDate 2022-03-24

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Name IFRS
-Number 12
-IssueDate 2022-03-24
-Paragraph B10
-Subparagraph b
-URI https://taxonomy.ifrs.org/xifrs-link?type=IFRS&num=12&code=ifrs-tx-2022-en-r&anchor=para_B10_b&doctype=Appendix&subtype=B
-URIDate 2022-03-24

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Name IAS
-Number 1
-IssueDate 2022-03-24
-Paragraph 82
-Subparagraph a
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2022-en-r&anchor=para_82_a&doctype=Standard
-URIDate 2022-03-24

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2022-03-24
-Paragraph 103
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2022-en-r&anchor=para_103&doctype=Standard
-URIDate 2022-03-24

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Name IAS
-Number 1
-IssueDate 2022-03-24
-Paragraph 102
-URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2022-en-r&anchor=para_102&doctype=Standard
-URIDate 2022-03-24

+ Details

Related party transactions (Tables)

12 Months Ended

Dec. 31, 2022

Related party transactions

Summary of related party transactions


Names of related parties		Nature of relationship
Edigene (Beijing) Inc.		A director of this entity is also a director of the Company
Beijing Shangyi Zhixin Healthcare Management Ltd.		A director of this entity is also a director of the Company
Hangzhou ImmuQuad Biotechnologies, LLC		A director of this entity is also a director of the Company

Summary of provision of services


	Year ended December 31,
	2020	2021	2022
	RMB’000	RMB’000	RMB’000
Edigene (Beijing) Inc.	623	1,185	804
Others	898	56	—
	1,521	1,241	804

Summary of purchase of goods and services


	Year ended December 31,
	2020	2021	2022
	RMB’000	RMB’000	RMB’000

Beijing Shangyi Zhixin Healthcare Management Ltd.	—	—	1,498
Hangzhou ImmuQuad Biotechnologies, LLC	—	87	—

Summary of balances with related parties

(i)Trade receivables


	As of December 31,
	2021	2022
	RMB’000	RMB’000
Edigene (Beijing) Inc.	597	110

(ii)Trade payables


	As of December 31,
	2021	2022
	RMB’000	RMB’000

Hangzhou ImmuQuad Biotechnologies, LLC	3	—

Summary of compensations paid or payable to key management for employee services


	Year ended December 31,
	2020	2021	2022
	RMB’000	RMB’000	RMB’000
Salaries and other short-term employee benefits	8,112	10,238	11,777
Contributions to pension plans	107	156	232
Share-based compensation expenses	15,679	15,729	6,682
	23,898	26,123	18,691

Related party transactions - Summary of Balances with Related Parties (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Edigene beijing Inc [Member]
Related party transactions
Trade receivables	¥ 110	¥ 597
Hangzhou ImmuQuad Biotechnologies, LLC
Related party transactions
Trade payables		¥ 3

Inventories - Summary of Detailed Information About Inventories Explanatory (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
Inventories
Raw materials	¥ 34,910		¥ 23,251
Work-in-progress	29		2,260
Finished goods	7,488		10,092
Total inventories	¥ 42,427	$ 6,151	¥ 35,603

Other payables and accruals

12 Months Ended

Dec. 31, 2022

Other payables and accruals

Other payables and accruals

29.Other payables and accruals


	As of December 31,
	2021	2022
	RMB’000	RMB’000
Payroll and welfare payables	42,612	49,302
Accrued professional service fees	35,368	22,151
Accrued taxes other than income tax	2,583	3,038
Deferred income from ADS depository (Note)	14,995	12,449
Others	61,674	99,066
	157,232	186,006

Note:

After listing in 2020 the Company entered into an agreement with a bank to deposit its ADSs for 5 years (the “deposit period”) and received a fee of US$3.4 million (equivalent to approximately RMB23 million) which is to be amortized over the deposit period.

Borrowings

12 Months Ended

Dec. 31, 2022

Borrowings

Borrowings

28.Borrowings


	As of December 31,
	2021	2022
	RMB’000	RMB’000
Non-current
Other borrowings (Note (i))	—	7,098
Current
Bank borrowings (Note (ii))	15,153	86,023
Current portion of other borrowings (Note (i))	4,401	23,711
	19,554	109,734
Total	19,554	116,832

Note:

(i)

The Group entered into sale and leaseback agreements with independent parties, to which the Group transferred the ownership of certain instruments and thereby obtained cash proceeds.

The Group continues to have control over the assets which make the above ownership transfers not qualify as sales transactions as a result. The proceeds received by the Group are thus in substance borrowings with the assets not being derecognized.

The interest rates of these borrowings are approximately 6%-8% per annum and subject to adjustments in accordance with the benchmark lending interest rate promulgated by the People’s Bank of China. The principals and interests are repaid in quarterly or monthly instalments based on respective agreements.

28.Borrowings (Continued)

Note (Continued):

(ii)

The Group obtained bank facilities with 1-year term with existing ones being progressively expired up to November 2023. Bank borrowings require corporate guarantee provided by certain Group companies in general and bear fixed interest rates at 3.9% and 2.7%-4.7% per annum as of December 31, 2021 and 2022 respectively.

As of December 31, 2021 and 2022, the unutilized bank facilities amounted to RMB 4 million and RMB 63 million respectively.

Other receivables and prepayments

12 Months Ended

Dec. 31, 2022

Other receivables and prepayments

Other receivables and prepayments

20.Other receivables and prepayments


	As of December 31,
	2021	2022
	RMB’000	RMB’000
Deposits	7,344	5,172
Prepayment for goods and service	59,058	40,301
Prepayment for rental expenses	536	812
Others	31,431	25,988
	98,369	72,273
Less: loss allowance	(474)	(6,842)
	97,895	65,431

Income tax expense - Summary of reconciliation between the Groups actual tax charge and statutory income tax rate (Parenthetical) (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income tax expense
Statutory income tax rate		25.00%
PRC
Income tax expense
Statutory income tax rate	25.00%
Preferential Tax Rate	15.00%

Revenue and segment information - Summary of timing of revenue recognition (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
Revenue and segment information
Revenue	¥ 650,706	$ 94,344	¥ 531,950	¥ 424,485
Material reconciling items
Revenue and segment information
Revenue	650,706		531,950	424,485
Material reconciling items \| over time
Revenue and segment information
Revenue	188,827		218,754	265,137
Material reconciling items \| at a point in time
Revenue and segment information
Revenue	¥ 461,879		¥ 313,196	¥ 159,348

- Definition

+ References

+ Details

Revenue and segment information (Tables)

12 Months Ended

Dec. 31, 2022

Revenue and segment information

Summary of revenue and segment information


	Diagnosis and	Diagnosis and
	monitoring	monitoring
	– provision of	– sale of IVD	Development
	LDT services	products	services	Total
	RMB’000	RMB’000	RMB’000	RMB’000
Year ended December 31,2020
Revenue	291,702	93,982	38,801	424,485
Segment profit	198,170	60,266	1,781	260,217
Year ended December 31,2021
Revenue	337,844	154,543	39,563	531,950
Segment profit	231,186	99,993	6,788	337,967
Year ended December 31,2022
Revenue	542,338	60,269	48,099	650,706
Segment profit	250,819	24,734	5,875	281,428

Summary of reconciliation of segment profits to loss for the year


	Year ended December 31,
	2020	2021	2022
	RMB’000	RMB’000	RMB’000
Total segment profits	260,217	337,967	281,428
Unallocated expenses
- operating expenses	(528,593)	(855,815)	(983,434)
- finance income/(costs) – net	22,703	15,250	(108,624)
- losses from financial instruments with preferred rights	(2,823,370)	—	—
Loss for the year	(3,069,043)	(502,598)	(810,630)

Summary of timing of revenue recognition


	Year ended December 31,
	2020	2021	2022
	RMB’000	RMB’000	RMB’000
Timing of revenue recognition
- over time	265,137	218,754	188,827
- at a point in time	159,348	313,196	461,879
	424,485	531,950	650,706

Summary of assets and liabilities related to contracts with customers


	As of December 31,
	2021	2022
	RMB’000	RMB’000
Contract assets	8,458	18,464
Less: loss allowance	(683)	(3,767)
	7,775	14,697
Contract liabilities	11,962	9,589
Revenue recognized that was included in the contract liabilities balance at the beginning of the year	6,607	8,303

Other payables and accruals - Additional Information (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020 CNY (¥)	Dec. 31, 2020 USD ($)
Other payables and accruals
Deferred Income Amortization Period	5 years	5 years
Proceeds From Deposit Fee	¥ 23	$ 3.4

Share capital and share premium

12 Months Ended

Dec. 31, 2022

Share capital and share premium

Share capital and share premium

24.Share capital and share premium


					Nominal
		Number of	Nominal value	Number of	value of
		ordinary	of ordinary	preferred	preferred
	Note	shares	shares	shares	shares
			US$’000		US$’000
Authorized:

As of January 1, 2020		2,286,497,400	46	213,502,600	4
Re-designation upon issuance of Series D-2 preferred shares	(i)	(6,829,500)	—	6,829,500	—
Conversion of preferred shares into ordinary shares	(ii)	220,332,100	4	(220,332,100)	(4)

As of December 31, 2020, 2021 and 2022		2,500,000,000	50	—	—

24.Share capital and share premium (Continued)


		Number of	Nominal value of
		ordinary	ordinary shares		Share
	Note	shares	(Share capital)		premium
			US$’000	RMB’000	RMB’000
Issued:

As of January 1, 2020		141,478,000	3	17	—
Issuance of ordinary shares upon IPO	(ii)	80,000,000	2	11	1,657,782
Conversion of preferred shares into ordinary shares	(ii)	220,332,100	4	31	4,999,780
As of December 31, 2020		441,810,100	9	59	6,657,562

As of January 1, 2021		441,810,100	9	59	6,657,562
Exercise of awards	27(a)	11,164,880	—	2	53,672

As of December 31, 2021		452,974,980	9	61	6,711,234

As of January 1, 2022		452,974,980	9	61	6,711,234
Exercise of awards	27(a)	3,993,550	—	—	23,671

As of December 31, 2022		456,968,530	9	61	6,734,905

Note:

(i)

In February 2020 the Company further issued 6,829,500 Series D-2 preferred shares for a cash consideration of US$10 million.

(ii)

On June 19, 2020, 16,000,000 ADSs (representing 80,000,000 ordinary shares) were offered by the Company upon their listing on NASDAQ. Simultaneously all the 220,332,100 then preferred shares of the Company were converted into ordinary shares.

Summary of significant accounting policies (Policies)

12 Months Ended

Dec. 31, 2022

Summary of significant accounting policies

Basis of preparation

2.1Basis of preparation

These consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”). The financial statements have been prepared under the historical cost convention, as modified by the revaluation of financial assets at fair value through profit or loss and derivative financial instruments.

Going concern

For each of the years ended December 31, 2020, 2021 and 2022, the Group had net operating loss of RMB268,376,000, RMB517,848,000 and RMB702,006,000 and net cash outflows from operating activities of RMB300,897,000, RMB524,144,000 and RMB460,197,000, respectively. As at December 31, 2021 and 2022, the Group had net assets of RMB1,210,052,000 and RMB548,356,000 and net current assets of RMB982,085,000 and RMB319,085,000, respectively.

Based on management’s evaluation, the Group believes that its normal operating revenues, together with the existing cash and cash equivalents as well as assets readily convertible into such, are unable to meet its obligations falling due and working capital requirements in the next twelve months from the date of issuance of these financial statements. This indicates that a material uncertainty exists that may cast significant doubt (or raise substantial doubt as contemplated by PCAOB standards) on the Group’s ability to continue as a going concern and therefore the Group may be unable to realize assets and discharge liabilities in the normal course of business.

The Group will need to raise additional funding to fund its operations and is in the process of negotiating financing with certain investors. There can be no assurance, however, that the Group will be able to obtain financing on acceptable terms on a timely basis or at all. The inability to obtain future funding could impact the Group’s financial condition and ability to continue operations and being unable to continue as a going concern.

The Group’s ability to continue as a going concern is dependent on management’s ability to successfully execute its plans, which include a business plan to control operating costs and expenses and optimize operational efficiency to improve the Group’s cash flows from operations, and a financial plan to raise external financing as mentioned above and obtain additional bank facilities. To implement the business plan, the Company will reduce various discretional expenditures including employee benefit and other operating expenses. Details of bank facilities are set out in Note 28(ii).

The financial statements do not include any adjustments that might result from the outcome of the uncertainty and have been prepared assuming that the Group will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business.

The financial statements were authorized for issue by the board of directors of the Company on May 12, 2023.

New standards, amendments to standards and interpretations adopted by the Group

2.2New standards, amendments to standards and interpretations adopted by the Group

The Group has applied the following for the first time for their annual reporting period commencing January 1, 2022:

● Amendments to IAS 16		Property, Plant and Equipment: Proceeds before intended use
● Amendments to IAS 37		Onerous Contracts – Cost of Fulfilling a Contract
● Amendments to IFRS 3		Reference to the Conceptual Framework
● Annual Improvements 2018 – 2020 cycle

The above amendments do not have any material impact on the amounts recognized in prior periods and are not expected to significantly affect the current or future periods.

2.3New standards, amendments to standards and interpretations not yet adopted


		Effective for annual periods beginning on or after

● IFRS 17	Insurance Contracts	January 1, 2023
● Amendments to IAS 1 and IFRS Practice Statement 2	Disclosure of Accounting Policies	January 1, 2023
● Amendments to IAS 8	Definition of Accounting Estimates	January 1, 2023
● Amendments to IAS 12	Deferred Tax related to Assets and Liabilities arising from a Single Transaction	January 1, 2023
● Amendments to IAS 1	Classification of Liabilities as Current or Non-current	January 1, 2024
● Amendments to IAS 1	Non-current Liabilities with Covenants	January 1, 2024
● Amendments to IFRS 16	Leases on Sale and Leaseback	January 1, 2024

There are no new standards, amendments to existing standards or interpretations that are not yet effective and would be expected to have a material impact to the Group.

Consolidation

2.4.1Consolidation

A subsidiary is an entity over which the Group has control. The Group controls an entity where the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

Intra-group transactions, balances and unrealized gains on transactions between Group companies are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. When necessary, amounts reported by subsidiaries have been adjusted to conform with the Group’s accounting policies.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of loss, statement of comprehensive loss, statement of changes in equity/(deficit) and balance sheet respectively.

2.Summary of significant accounting policies (Continued)

2.4Principles of consolidation and equity accounting (Continued)

2.4.1Consolidation (Continued)

(a)	Contractual Arrangements with the VIEs and their equity holders

The PRC Subsidiaries have entered into Contractual Arrangements, including the Shareholder Voting Rights Entrustment Agreements, Spousal Consent Letters, Equity Interest Pledge Agreements, Exclusive Business Cooperation Agreements and Exclusive Option Agreements, with the VIEs and their equity holders.

Shareholder Voting Rights Entrustment Agreements

Pursuant to the agreements among the PRC Subsidiaries, VIEs and the equity holders of VIEs, these equity holders irrevocably authorize the PRC Subsidiaries or any person(s) designated by the PRC Subsidiaries to act as his or her attorney-in-fact to exercise all of his or her rights as an equity holder of the VIEs, including, but not limited to, the right to call and attend shareholders’ meetings, execute and deliver any and all written resolutions and meeting minutes as a shareholder, vote by itself or by proxy on any matters discussed on shareholders’ meetings, sell, transfer, pledge or dispose of any or all of the shares, nominate, appoint or remove the directors, supervisors and senior management, and other shareholders rights conferred by the articles of association of the VIEs and the relevant laws and regulations.

Spousal Consent Letters

The spouse of each of Mr. Sizhen Wang and certain other individuals has signed spousal consent letters. Under the spousal consent letter, the spouse unconditionally and irrevocably waives any rights or entitlements whatsoever to such shares that may be granted to his/her pursuant to applicable laws and undertakes not to make any assertion of rights to such shares. The spouse agrees and undertakes that he/she will take all necessary actions to ensure the proper performance of the Contractual Arrangements, and will be bound by the Contractual Arrangements in case he/she obtains any equity of the VIEs due to any reason.

Equity Interest Pledge Agreements

Pursuant to the agreements among the PRC Subsidiaries and the equity holders of VIEs, the equity holders of VIEs have pledged 100% equity interest in the VIEs in favor of the PRC Subsidiaries to guarantee the performance by the VIEs and their equity holders of their obligations under the Exclusive Business Cooperation Agreements, the Exclusive Option Agreements and any other agreement to be executed among the PRC Subsidiaries, VIEs and the equity holders from time to time. If the VIEs or their equity holders breach their contractual obligations under the agreements, the PRC Subsidiaries, as pledgees, will have the right to dispose of the pledged shares entirely or partially. The equity holders of the VIEs also agreed, without the PRC Subsidiaries’ prior written consents, not to transfer the pledged shares, establish or permit the existence of any security interest or other encumbrance on the pledged shares, or dispose of the pledged shares by any other means, except by the performance of the Exclusive Option Agreements.

2.	Summary of significant accounting policies (Continued)

2.4

Principles of consolidation and equity accounting (Continued)

2.4.1

Consolidation (Continued)

(a)	Contractual Arrangements with the VIEs and their equity holders (Continued)

Exclusive Business Cooperation Agreements

Pursuant to the agreements between the PRC Subsidiaries and VIEs, the PRC Subsidiaries or their designated entities affiliated have the exclusive right to provide the VIEs with technical support, business support and consulting services in return for fees equal to 100% of the consolidated net profits of the VIEs. Without the PRC Subsidiaries’ prior written consents, the VIEs shall not, directly and indirectly, obtain the same or similar services as provided under the agreements from any third party, or enter into any similar agreement with any third party. The PRC Subsidiaries have the right to determine the service fee charged to the VIEs under the agreements by considering, among other things, the complexity of the services, the time spent by employees of the PRC Subsidiaries to provide the services, contents and commercial value of the service provided, as well as the benchmark price of similar services in the market. The PRC Subsidiaries will have the exclusive ownership of all intellectual property rights developed by performance of the agreements.

Exclusive Option Agreements

Pursuant to the agreements among the PRC Subsidiaries, VIEs and their equity holders, the equity holders of VIEs irrevocably granted the PRC Subsidiaries or any third party designated by the PRC Subsidiaries an exclusive option to purchase all or part of their equity interests in the VIEs at the lowest price permitted by applicable PRC laws. Those equity holders further undertake that they will neither allow the encumbrance of any security interest in the VIEs, except for the pledge created pursuant to the Equity Interest Pledge Agreements, nor transfer, mortgage or otherwise dispose of their legal or beneficial interests in the VIEs without the prior written consents of the PRC Subsidiaries, and will cause the shareholders’ meeting and/or the board of directors and/or the executive directors of the VIEs not to approve such proposal.

In the opinion of the Company’s management, the Contractual Arrangements enable the PRC Subsidiaries and the Group to

have power over the VIEs;

receive substantially all of the economic benefits of the VIEs; and

have an exclusive option to purchase all or part of the equity interest in and/or assets of the VIEs when and to the extent permitted by laws.

The Group does not have any equity interests in the VIEs. As a result of the Contractual Arrangements, the Group has rights to variable returns from its involvement in the VIEs and has the ability to affect those returns through its power over the VIEs, and is thereby able to consolidate the financial positions and results of the VIEs and their subsidiaries in the consolidated financial statements for accounting purposes. There is currently no contractual arrangement that requires the Company to provide additional financial support to the VIEs.

2.	Summary of significant accounting policies (Continued)

2.4

Principles of consolidation and equity accounting (Continued)

2.4.1

Consolidation (Continued)

(b)	Risks in relation to VIEs and subsidiaries of VIEs

After completion of the Reorganization, a significant part of the Group's business is conducted through VIEs and subsidiaries of VIEs. The Company becomes to receive substantially all the economic benefits from them through the Contractual Arrangements. In the opinion of management, the ownership structure of the VIEs is not in violation of any existing PRC law or regulation in any material respect; and the Contractual Arrangements are in compliance with PRC laws and are valid, legally binding and enforceable. However, uncertainties regarding the interpretation and application of current and future PRC laws, regulations and rules could limit the Company’s ability to enforce the Contractual Arrangements.

In March 2019, the National People’s Congress of the PRC adopted the PRC Foreign Investment Law, which became effective on January 1, 2020. Among other things, the PRC Foreign Investment Law defines the “foreign investment” as investment activities in China by foreign investors in a direct or indirect manner, including those circumstances explicitly listed above as establishing new projects or foreign invested enterprises or acquiring shares of enterprises in China, and other approaches of investment as stipulated by laws, administrative regulations or otherwise regulated by the State Council. The PRC Foreign Investment Law leaves uncertainty as to whether foreign investors’ directing PRC onshore variable interest entities via contractual arrangements will be recognized as “foreign investment” and thus be subject to the restrictions/prohibitions on foreign investments.

Current PRC laws and regulations impose certain restrictions or prohibitions on foreign ownership of companies that engage in the development and application of technologies for diagnosis and treatment of human stem cells and genes (“genomics business”), to which the precision oncology service of the Group relates. Pursuant to the Special Administrative Measures (Negative List) issued by the National Development and Reform Committee and Ministry of Commerce of the PRC on June 30, 2019, which came into force on July 30, 2019, certain industries are specifically prohibited for foreign investment, including genomics business. To comply with PRC laws and regulations, the Group conducts related business in China through VIEs.

2.	Summary of significant accounting policies (Continued)

2.4

Principles of consolidation and equity accounting (Continued)

2.4.1

Consolidation (Continued)

(b)	Risks in relation to VIEs and subsidiaries of VIEs (Continued)

If the corporate structure of the Group or the Contractual Arrangements between the VIEs and subsidiaries of VIEs and their respective equity holders were found to be in violation of the current or future PRC laws and regulations, the PRC government could:

●

revoke the Group’s business and operating licenses;

●

require the Group to discontinue or restrict its operations;

●

restrict the Group’s right to collect revenues;

●

require the Group to restructure the operations, re-apply for the necessary licenses or relocate its businesses, staff and assets;

●

impose additional conditions or requirements with which the Group may not be able to comply; or

●

take other regulatory or enforcement actions against the Group that could be harmful to the Group’s business.

The Company’s ability to conduct its business may be negatively affected if the PRC government carries out any of the aforementioned actions. As a result, the Company may not be able to consolidate its VIEs and subsidiaries of VIEs in its consolidated financial statements as it may lose the ability to receive economic benefits from them.

2.	Summary of significant accounting policies (Continued)

2.4

Principles of consolidation and equity accounting (Continued)

2.4.1

Consolidation (Continued)

(b)	Risks in relation to VIEs and subsidiaries of VIEs (Continued)

Summarized condensed financial information of the Group’s VIEs and subsidiaries of VIEs:


	As of December 31,
	2021	2022	2022
	RMB’000	RMB’000	US$’000
			Note 2.5(d)
Non-current assets	189,393	198,809	28,825
Current assets	556,527	507,893	73,638
Total assets	745,920	706,702	102,463
Non-current liabilities	1,402,408	1,650,200	239,257
Current liabilities	267,888	512,288	74,275
Total liabilities	1,670,296	2,162,488