BEIJING,
Second Quarter and Recent Highlights
- Recorded total revenue of
RMB 140.5 million (US$21.8 million ) for the second quarter 2021, representing a 38.1% increase over the same period of 2020. - Generated LDT segment revenue with year on year growth of 15.0% to
RMB 87.1 million (US$13.5 million ) for the second quarter 2021. - IVD revenue was
RMB 43.8 million (US$6.8 million ) for the second quarter 2021, representing 141.5% growth over the same period of 2020, due to increasing sales of Genetron S5 instrument and 8-gene Lung Cancer Assay (Tissue). - Development services grew 21.8% compared to a year ago, based on our increasing effort in providing services to biopharmaceutical partners.
- Achieved gross margin of 67.2% for the second quarter 2021, compared to 63.1% in the same period of 2020, thanks to improvements in both LDT and IVD business lines.
Genetron established a IVD partnership withShanghai Yikon Genomics Technology Co., Ltd. , in which the partner will have exclusive rights of its S5 instrument in the area of reproductive health.- Recently, Seq-MRD for hematologic cancers has signed on a leading pharmaceutical MNC for use in their clinical trial.
- AYVAKIT® companion diagnostic kit, developed in partnership with
CStone Pharmaceuticals , has entered the priority review and approval process under the NMPA inChina . - Received CE Mark for 8-gene Lung Cancer Assay (Tissue).
- Established collaboration with Guizhou Province’s Dafang County authorities to use HCCscreenTM for high-risk liver cancer patients in the rural markets.
- Genetron’s Beijing lab achieved full marks and was ranked first in NCCL’s External Quality Assessment of participating clinical laboratories in
China , based on its NGS-based comprehensive genomic profiling for solid tumors, Onco Panscan.
“In the second quarter, we delivered strong revenues, along with improved gross margins. We were pleased to see continued sales momentum across all of our business lines,” remarked Mr. Sizhen Wang, co-founder and CEO of
Second Quarter 2021 Unaudited Preliminary Financial Results
Total revenue for the second quarter 2021 increased by 38.1% to
Diagnosis and monitoring revenue increased by 39.4% to
- Revenue generated from the provision of LDT services increased by 15.0% to
RMB87.1 million (US$13.5 million ) during the second quarter 2021 fromRMB75.8 million in the same period of 2020. In the second quarter, sales of LDT services included sales of our early screening test, HCCscreen. LDT diagnostic tests sold in the second quarter 2021 totaled approximately 6,840 units.
- Revenue generated from sales of IVD products increased by 141.5% to
RMB43.8 million (US$6.8 million ) in the second quarter 2021 fromRMB18.1 million in the second quarter 2020, due to increasing sales of Genetron S5 instrument and 8-gene Lung Cancer Assay (Tissue).
Contracted in-hospital partners (as of the end of the period indicated) | |||||
2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | |
IVD In-hospital partners | 18 | 20 | 22 | 23 | 28 |
2Q20 | 3Q20 | 4Q20 | 1Q21 | 2Q21 | |
Total in-hospital partners(1) | 35 | 38 | 40 | 42 | 50 |
Note: (1) The number of total in-hospital partners include both sales of LDT services and IVD products. | |||||
Revenue generated from development services increased by 21.8% to
Cost of revenue increased by 22.7% to
Gross profit increased by 47.1% to
Operating expenses increased by 65.8% to
Selling expenses increased by 46.0% to
Administrative expenses increased by 95.6% to
Research and development expenses increased by 88.2% to
As a result of the above, operating loss was
Net finance income increased to
Loss for the period was
Non-IFRS loss for the period, defined as loss for the period excluding share-based compensation expenses, fair value change and other loss of financial instruments with preferred rights, was
Basic loss per ordinary share attributable to ordinary shareholders of the Company was
As of
2021 Financial Guidance
At this time, we expect the current COVID-related restrictions to be temporary, and are maintaining our 2021 expected revenue range of
Conference Call
A conference call and webcast to discuss the results will be held at
+1-845-675-0437 | |
China Domestic: | 400-620-8038 |
Hong Kong: | +852-3018-6771 |
International: | +65-6713-5090 |
Conference ID: | 7494097 |
Participants are encouraged to dial into the call at least 15 minutes in advance due to high call volumes.
A replay will be accessible through
+1-855-452-5696 | |
International: | +61-2-8199-0299 |
Conference ID: | 7494097 |
A simultaneous webcast of the conference call will be available on the "News and Presentations" 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.
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 attributable to ordinary shareholders 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 attributable to ordinary shareholders 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 attributable to ordinary shareholders 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 attributable to ordinary shareholders 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 attributable to ordinary shareholders 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 attributable to ordinary shareholders 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 attributable to ordinary shareholders 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 attributable to ordinary shareholders of the Company for the year/period to loss per share attributable to ordinary shareholders 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:
Head of Investor Relations
Email: hoki.luk@genetronhealth.com
Phone: +1 (408) 891-9255
Managing Director |
ir@genetronhealth.com
Media Relations Contact
yanrong.zhao@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 | 101,735 | 140,485 | 21,758 | 178,578 | 232,546 | 36,017 | |||||||||||
Cost of revenue | (37,512 | ) | (46,021 | ) | (7,128 | ) | (72,117 | ) | (83,533 | ) | (12,938 | ) | |||||
Gross profit | 64,223 | 94,464 | 14,630 | 106,461 | 149,013 | 23,079 | |||||||||||
Selling expenses | (60,618 | ) | (88,516 | ) | (13,709 | ) | (114,442 | ) | (148,187 | ) | (22,951 | ) | |||||
Administrative expenses | (27,906 | ) | (54,577 | ) | (8,453 | ) | (49,529 | ) | (99,180 | ) | (15,361 | ) | |||||
Research and development expenses | (29,845 | ) | (56,162 | ) | (8,698 | ) | (57,474 | ) | (106,136 | ) | (16,438 | ) | |||||
Net impairment losses on financial and contract assets | (267 | ) | (3,474 | ) | (538 | ) | (990 | ) | (13,304 | ) | (2,061 | ) | |||||
Other income and gains/(losses) - net | 1,270 | 8,081 | 1,252 | (4,332 | ) | 8,611 | 1,335 | ||||||||||
Operating expenses | (117,366 | ) | (194,648 | ) | (30,146 | ) | (226,767 | ) | (358,196 | ) | (55,476 | ) | |||||
Operating loss | (53,143 | ) | (100,184 | ) | (15,516 | ) | (120,306 | ) | (209,183 | ) | (32,397 | ) | |||||
Finance income | 198 | 9,447 | 1,463 | 228 | 5,179 | 802 | |||||||||||
Finance costs | (827 | ) | (1,409 | ) | (218 | ) | (4,375 | ) | (3,180 | ) | (493 | ) | |||||
Finance (costs)/income - net | (629 | ) | 8,038 | 1,245 | (4,147 | ) | 1,999 | 309 | |||||||||
Fair value loss of financial instruments with preferred rights | (2,778,591 | ) | - | - | (2,823,370 | ) | - | - | |||||||||
Loss before income tax | (2,832,363 | ) | (92,146 | ) | (14,271 | ) | (2,947,823 | ) | (207,184 | ) | (32,088 | ) | |||||
Income tax expense | - | - | - | - | - | - | |||||||||||
Loss for the period | (2,832,363 | ) | (92,146 | ) | (14,271 | ) | (2,947,823 | ) | (207,184 | ) | (32,088 | ) | |||||
Loss attributable to: | |||||||||||||||||
Owners of the Company | (2,832,363 | ) | (91,820 | ) | (14,221 | ) | (2,947,823 | ) | (204,574 | ) | (31,684 | ) | |||||
Non-controlling interests | - | (326 | ) | (50 | ) | - | (2,610 | ) | (404 | ) | |||||||
(2,832,363 | ) | (92,146 | ) | (14,271 | ) | (2,947,823 | ) | (207,184 | ) | (32,088 | ) | ||||||
Loss per share attributable to ordinary shareholders of the Company | RMB | RMB | USD | RMB | RMB | USD | |||||||||||
-Basic and diluted | (17.04 | ) | (0.20 | ) | (0.03 | ) | (20.25 | ) | (0.45 | ) | (0.07 | ) | |||||
Loss per ADS attributable to ordinary shareholders of the Company | |||||||||||||||||
-Basic and diluted | (85.22 | ) | (1.00 | ) | (0.15 | ) | (101.23 | ) | (2.23 | ) | (0.35 | ) | |||||
Shares used in loss per share attributable to ordinary shareholders of the Company computation: | |||||||||||||||||
-Basic and diluted | 166,179,400 | 459,903,803 | 459,903,803 | 145,604,263 | 458,999,227 | 458,999,227 | |||||||||||
ADS used in loss per ADS attributable to ordinary shareholders of the Company computation: | |||||||||||||||||
-Basic and diluted | 33,235,880 | 91,980,761 | 91,980,761 | 29,120,853 | 91,799,845 | 91,799,845 |
UNAUDITED NON-IFRS FINANCIAL MEASURE
For the three months ended | For the six months ended | |||||||||||||||||
RMB’000 | RMB’000 | USD’000 | RMB’000 | RMB’000 | USD’000 | |||||||||||||
Loss for the period | (2,832,363 | ) | (92,146 | ) | (14,271 | ) | (2,947,823 | ) | (207,184 | ) | (32,088 | ) | ||||||
Adjustments: | ||||||||||||||||||
Share-based compensation | 9,903 | 12,504 | 1,937 | 14,954 | 21,754 | 3,369 | ||||||||||||
Fair value loss of financial instruments with preferred rights | 2,778,591 | - | - | 2,823,370 | - | - | ||||||||||||
Non-IFRS Loss | (43,869 | ) | (79,642 | ) | (12,334 | ) | (109,499 | ) | (185,430 | ) | (28,719 | ) | ||||||
Attributable to: | ||||||||||||||||||
Owners of the Company | (43,869 | ) | (79,316 | ) | (12,284 | ) | (109,499 | ) | (182,820 | ) | (28,315 | ) | ||||||
Non-controlling interests | - | (326 | ) | (50 | ) | - | (2,610 | ) | (404 | ) | ||||||||
(43,869 | ) | (79,642 | ) | (12,334 | ) | (109,499 | ) | (185,430 | ) | (28,719 | ) | |||||||
Non-IFRS loss per share attributable to ordinary shareholders of the Company | RMB | RMB | USD | RMB | RMB | USD | ||||||||||||
-Basic and diluted | (0.26 | ) | (0.17 | ) | (0.03 | ) | (0.75 | ) | (0.40 | ) | (0.06 | ) | ||||||
Non-IFRS loss per ADS (5 ordinary shares equal to 1 ADS) attributable to ordinary shareholders of the Company | ||||||||||||||||||
-Basic and diluted | (1.32 | ) | (0.86 | ) | (0.13 | ) | (3.76 | ) | (1.99 | ) | (0.31 | ) | ||||||
Shares used in non-IFRS loss per share attributable to ordinary shareholders of the Company computation: | ||||||||||||||||||
-Basic and diluted | 166,179,400 | 459,903,803 | 459,903,803 | 145,604,263 | 458,999,227 | 458,999,227 | ||||||||||||
ADS used in non-IFRS loss per ADS attributable to ordinary shareholders of the Company computation: | ||||||||||||||||||
-Basic and diluted | 33,235,880 | 91,980,761 | 91,980,761 | 29,120,853 | 91,799,845 | 91,799,845 |
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 | 75,772 | 18,145 | 7,818 | 101,735 | ||||
Segment profit | 53,094 | 10,040 | 1,089 | 64,223 | ||||
Three months ended | ||||||||
Revenue | 87,138 | 43,827 | 9,520 | 140,485 | ||||
Segment profit | 61,890 | 31,312 | 1,262 | 94,464 | ||||
Six months ended | ||||||||
Revenue | 123,348 | 37,358 | 17,872 | 178,578 | ||||
Segment profit/(loss) | 81,749 | 25,388 | (676 | ) | 106,461 | |||
Six months ended | ||||||||
Revenue | 158,966 | 59,093 | 14,487 | 232,546 | ||||
Segment profit | 110,701 | 36,534 | 1,778 | 149,013 |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As at December 31,2020 | As at | |||||
RMB’000 | RMB’000 | US$’000 | ||||
ASSETS | ||||||
Non-current assets | ||||||
Property, plant and equipment | 76,891 | 76,746 | 11,886 | |||
Right-of-use assets | 59,706 | 55,583 | 8,609 | |||
Intangible assets | 12,265 | 15,284 | 2,367 | |||
Financial assets at fair value through profit or loss | 19,609 | 36,334 | 5,628 | |||
Prepayments | 15,362 | 23,418 | 3,627 | |||
Total non-current assets | 183,833 | 207,365 | 32,117 | |||
Current assets | ||||||
Inventories | 24,971 | 32,978 | 5,108 | |||
Contract assets | 1,112 | 2,188 | 339 | |||
Other current assets | 36,500 | 31,255 | 4,841 | |||
Trade receivables | 164,592 | 211,898 | 32,819 | |||
Other receivables and prepayments | 42,420 | 46,835 | 7,254 | |||
Amounts due from related parties | 214 | 225 | 35 | |||
Financial assets at fair value through profit or loss | 140,294 | 142,194 | 22,023 | |||
Derivative financial instruments | 196 | 745 | 115 | |||
Restricted cash | - | 5,000 | 774 | |||
Cash and cash equivalents | 1,375,766 | 1,066,815 | 165,229 | |||
Total current assets | 1,786,065 | 1,540,133 | 238,537 | |||
Total assets | 1,969,898 | 1,747,498 | 270,654 | |||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
As at December 31,2020 | As at June 30,2021 | ||||||||
RMB’000 | RMB’000 | US$’000 | |||||||
LIABILITIES | |||||||||
Non-current liabilities | |||||||||
Borrowings | 5,493 | 1,709 | 265 | ||||||
Lease liabilities | 43,016 | 38,627 | 5,983 | ||||||
Other non-current liabilities | - | 8,096 | 1,254 | ||||||
Total non-current liabilities | 48,509 | 48,432 | 7,502 | ||||||
Current liabilities | |||||||||
Trade payables | 34,071 | 36,172 | 5,602 | ||||||
Contract liabilities | 8,417 | 9,719 | 1,505 | ||||||
Other payables and accruals | 111,164 | 107,742 | 16,688 | ||||||
Amounts due to related parties | 24 | 513 | 79 | ||||||
Borrowings | 58,583 | 27,903 | 4,322 | ||||||
Lease liabilities | 16,585 | 19,087 | 2,956 | ||||||
Derivative financial instruments | - | 4,219 | 653 | ||||||
Total current liabilities | 228,844 | 205,355 | 31,805 | ||||||
Total liabilities | 277,353 | 253,787 | 39,307 | ||||||
Net assets | 1,692,545 | 1,493,711 | 231,347 | ||||||
SHAREHOLDERS’ EQUITY | |||||||||
Equity attributable to owners of the Company | |||||||||
Share capital | 59 | 59 | 9 | ||||||
Share premium | 6,657,562 | 6,680,307 | 1,034,648 | ||||||
Other reserves | (24,701 | ) | (49,917 | ) | (7,731 | ) | |||
Accumulated losses | (4,940,375 | ) | (5,144,949 | ) | (796,851 | ) | |||
1,692,545 | 1,485,500 | 230,075 | |||||||
Non-controlling interests | - | 8,211 | 1,272 | ||||||
Total shareholders’ equity | 1,692,545 | 1,493,711 | 231,347 | ||||||
Source:
2021 GlobeNewswire, Inc., source