BEIJING,
Third Quarter 2020 Unaudited Financial and Recent Operating Highlights
- Recorded total revenue of
RMB112.0 million for the third quarter 2020, representing a 37.6% increase over the same period of 2019. - Diagnosis and monitoring revenue increased to
RMB101.5 million in the third quarter 2020, representing a 45.0% increase over the same period of 2019. - Gross margin improved to 62.2% for the third quarter 2020, compared to 44.2% in the same period of 2019.
- Received
U.S. FDA breakthrough device designation for its blood-based NGS test, HCCscreenTM, for early detection of hepatocellular carcinoma inSeptember 2020 . - Joined a major R&D project led by the
Ministry of Science and Technology inChina for early screening of lung and digestive system cancers. - Entered into exclusive global licensing agreement with ImmuQuad Biotechnologies to develop and commercialize minimal residual disease (MRD) assays in hematologic cancer in
October 2020 . - Launched clinical trial in
China for companion diagnostic test in development for avapritinib with its strategic partnerCStone Pharmaceuticals . - Established partnership with dMed Biopharmaceuticals to pioneer a "one-stop" new drug research and development service offering and registration services in both
China and theU.S. for biopharmaceutical companies. - Presented data from 18 studies in conjunction with its collaborations at ESMO 2020.
“Despite COVID-19 pandemic’s impact in some of our major markets in the third quarter, we continued to see robust top-line growth with 37.6% year-over-year increase, representing an acceleration from the 28.3% year-over-year growth seen in the first half of 2020. The upward sales momentum was accompanied by strong margin improvements and SG&A operational efficiencies, compared to the same period last year,” remarked Mr. Sizhen Wang, co-founder and CEO of
“Looking ahead, although the pandemic has largely remained stable in
Third Quarter 2020 Unaudited Financial Results
Total revenue for the third quarter 2020 increased by 37.6% to
Diagnosis and monitoring revenue increased by 45.0% to
- Revenue generated from the provision of LDT services increased by 17.9% to
RMB71.4 million (US$10.5 million ) during the third quarter 2020 fromRMB60.5 million in the same period of 2019. LDT diagnostic tests sold in the third quarter 2020 totaled approximately 5,900 units, representing an increase of 5% compared to the number of LDT diagnostic tests sold in the same period of 2019. The average selling price also increased compared to the same period in 2019, attributable to a shift to higher value products such as Genetron Health’s Onco PanScan™. In the third quarter, sales of LDT services included sales of our early screening test, HCCscreenTM, in the form of LDT services, which contributed to a small portion of total LDT revenue.
- Revenue generated from sale of IVD products increased by 217.3% to
RMB30.1 million (US$4.4 million ) in the third quarter 2020 fromRMB9.5 million in the third quarter 2019. The increase was mainly driven by the increase in the number of assays and sequencing platforms sold in the third quarter 2020, notably the Genetron S5 instrument and Lung 8 Assay.
Contracted in-hospital partners
2019 | 1Q20 | 2Q20 | 3Q20 | |
IVD In-hospital partners | 13 | 13 | 18 | 20 |
2019 | 1Q20 | 2Q20 | 3Q20 | |
Total in-hospital partners(1) | 25 | 26 | 35 | 38 |
Note: (1) The number of total in-hospital partners include both sales of LDT services and IVD products. |
Revenue generated from development services decreased by 7.6% to
Despite higher revenue, cost of revenue decreased by 6.8% to
Gross profit increased by 93.7% to
Operating expenses increased by 7.4% to
Selling expenses continued to decline, decreasing by 7.9% to
Administrative expenses decreased by 2.9% to
Research and development expenses increased by 85.8% to
As a result of the above, operating loss decreased by 29.5% to
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 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: | 5248398 |
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
+1-855-452-5696 | |
International: | +61-2-8199-0299 |
Conference ID: | 5248398 |
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 loss and non-IFRS 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 loss and non-IFRS 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 loss and non-IFRS 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 loss and non-IFRS loss per ordinary share 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 ordinary share for the year/period and the reconciliation to its most directly comparable IFRS measures. Non-IFRS loss and non-IFRS 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 loss and non-IFRS loss per ordinary share 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 Measure” 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 ordinary share for the year/period to 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 nine months ended | ||||||||||||||||
September 30, 2019 | September 30, 2019 | ||||||||||||||||
RMB’000 | RMB’000 | US$’000 | RMB’000 | RMB’000 | US$’000 | ||||||||||||
Revenue | 81,344 | 111,963 | 16,490 | 220,485 | 290,541 | 42,792 | |||||||||||
Cost of revenue | (45,398 | ) | (42,331 | ) | (6,235 | ) | (121,315 | ) | (114,448 | ) | (16,856 | ) | |||||
Gross profit | 35,946 | 69,632 | 10,255 | 99,170 | 176,093 | 25,936 | |||||||||||
Selling expenses | (65,716 | ) | (60,558 | ) | (8,919 | ) | (184,549 | ) | (175,000 | ) | (25,775 | ) | |||||
Administrative expenses | (33,416 | ) | (32,440 | ) | (4,778 | ) | (88,471 | ) | (81,969 | ) | (12,073 | ) | |||||
Research and development expenses | (20,752 | ) | (38,556 | ) | (5,679 | ) | (59,336 | ) | (96,030 | ) | (14,144 | ) | |||||
Net impairment losses on financial and contract assets | (331 | ) | (1,107 | ) | (163 | ) | (736 | ) | (2,097 | ) | (309 | ) | |||||
Other income/(loss) - net | 259 | 3,819 | 562 | 11,813 | (513 | ) | (75 | ) | |||||||||
Operating expenses | (119,956 | ) | (128,842 | ) | (18,977 | ) | (321,279 | ) | (355,609 | ) | (52,376 | ) | |||||
Operating loss | (84,010 | ) | (59,210 | ) | (8,722 | ) | (222,109 | ) | (179,516 | ) | (26,440 | ) | |||||
Finance income | 26 | 12,772 | 1,881 | 438 | 11,062 | 1,629 | |||||||||||
Finance costs | (2,134 | ) | (1,560 | ) | (230 | ) | (3,603 | ) | (3,997 | ) | (589 | ) | |||||
Finance (costs)/income - net | (2,108 | ) | 11,212 | 1,651 | (3,165 | ) | 7,065 | 1,040 | |||||||||
Fair value loss of financial instruments with preferred rights | (187,955 | ) | - | - | (315,962 | ) | (2,823,370 | ) | (415,837 | ) | |||||||
Loss before income tax | (274,073 | ) | (47,998 | ) | (7,071 | ) | (541,236 | ) | (2,995,821 | ) | (441,237 | ) | |||||
Income tax expense | - | - | - | - | - | - | |||||||||||
Loss for the period | (274,073 | ) | (47,998 | ) | (7,071 | ) | (541,236 | ) | (2,995,821 | ) | (441,237 | ) | |||||
Loss attributable to: | |||||||||||||||||
Owners of the Company | (274,073 | ) | (47,998 | ) | (7,071 | ) | (541,236 | ) | (2,995,821 | ) | (441,237 | ) | |||||
Loss per share | RMB | RMB | USD | RMB | RMB | USD | |||||||||||
-Basic and diluted | (2.15 | ) | (0.11 | ) | (0.02 | ) | (4.35 | ) | (12.02 | ) | (1.77 | ) | |||||
Loss per ADS | |||||||||||||||||
-Basic and diluted | (0.53 | ) | (0.08 | ) | (60.10 | ) | (8.85 | ) | |||||||||
Shares used in loss per ordinary share computation: | |||||||||||||||||
-Basic and diluted | 127,274,280 | 454,231,486 | 454,231,486 | 124,286,433 | 249,230,922 | 249,230,922 | |||||||||||
ADS used in loss per ADS computation: | | ||||||||||||||||
-Basic and diluted | 90,846,297 | 90,846,297 | 49,846,184 | 49,846,184 | |||||||||||||
UNAUDITED NON-IFRS FINANCIAL MEASURE
For the three months ended | For the nine months ended | |||||||||||||||||
RMB’000 | RMB’000 | US$’000 | RMB’000 | RMB’000 | US$’000 | |||||||||||||
Loss for the period | (274,073 | ) | (47,998 | ) | (7,071 | ) | (541,236 | ) | (2,995,821 | ) | (441,237 | ) | ||||||
Adjustments: | ||||||||||||||||||
Share-based compensation | 10,755 | 4,268 | 629 | 31,494 | 19,222 | 2,831 | ||||||||||||
Fair value loss of financial instruments with preferred rights | 187,955 | - | - | 315,962 | 2,823,370 | 415,837 | ||||||||||||
Non-IFRS Loss | (75,363 | ) | (43,730 | ) | (6,442 | ) | (193,780 | ) | (153,229 | ) | (22,569 | ) | ||||||
Attributable to: | ||||||||||||||||||
Owners of the Company | (75,363 | ) | (43,730 | ) | (6,442 | ) | (193,780 | ) | (153,229 | ) | (22,569 | ) | ||||||
Non-IFRS loss per share | RMB | RMB | USD | RMB | RMB | USD | ||||||||||||
-Basic and diluted | (0.59 | ) | (0.10 | ) | (0.01 | ) | (1.56 | ) | (0.61 | ) | (0.09 | ) | ||||||
Non-IFRS loss per ADS(5 ordinary shares equal to 1 ADS) | ||||||||||||||||||
-Basic and diluted | (0.48 | ) | (0.07 | ) | (3.07 | ) | (0.45 | ) | ||||||||||
Shares used in non-IFRS loss per ordinary share computation: | ||||||||||||||||||
-Basic and diluted | 127,274,280 | 454,231,486 | 454,231,486 | 124,286,433 | 249,230,922 | 249,230,922 | ||||||||||||
ADS used in non-IFRS loss per ADS computation: | ||||||||||||||||||
-Basic and diluted | 90,846,297 | 90,846,297 | 49,846,184 | 49,846,184 | ||||||||||||||
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 | 60,542 | 9,490 | 11,312 | 81,344 | ||||
Segment profit/(loss) | 34,605 | 2,707 | (1,366 | ) | 35,946 | |||
Three months ended | ||||||||
Revenue | 71,406 | 30,110 | 10,447 | 111,963 | ||||
Segment profit | 49,212 | 18,439 | 1,981 | 69,632 | ||||
Nine months ended | ||||||||
Revenue | 169,285 | 14,434 | 36,766 | 220,485 | ||||
Segment profit/(loss) | 101,533 | 4,576 | (6,939 | ) | 99,170 | |||
Nine months ended | ||||||||
Revenue | 194,754 | 67,468 | 28,319 | 290,541 | ||||
Segment profit | 130,961 | 43,827 | 1,305 | 176,093 | ||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
As at December 31,2019 | As at September 30,2020 | |||||||
RMB’000 | RMB’000 | US$’000 | ||||||
ASSETS | ||||||||
Non-current assets | ||||||||
Property, plant and equipment | 83,013 | 73,500 | 10,825 | |||||
Right-of-use assets | 43,182 | 57,204 | 8,425 | |||||
Intangible assets | 5,482 | 9,453 | 1,392 | |||||
Prepayments | 12,679 | 11,975 | 1,765 | |||||
Total non-current assets | 144,356 | 152,132 | 22,407 | |||||
Current assets | ||||||||
Inventories | 17,896 | 22,972 | 3,383 | |||||
Contract assets | 1,020 | 1,698 | 250 | |||||
Other current assets | 43,711 | 40,494 | 5,965 | |||||
Trade receivables | 83,757 | 128,013 | 18,854 | |||||
Other receivables and prepayments | 19,526 | 33,011 | 4,862 | |||||
Amounts due from related parties | 1,064 | 72 | 11 | |||||
Financial assets at fair value through profit or loss | 122,224 | 233,534 | 34,396 | |||||
Cash and cash equivalents | 139,954 | 1,635,000 | 240,809 | |||||
Total current assets | 429,152 | 2,094,794 | 308,530 | |||||
Total assets | 573,508 | 2,246,926 | 330,937 | |||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
As at December 31,2019 | As at September 30,202 | |||||||
RMB’000 | RMB’000 | US$’000 | ||||||
LIABILITIES | ||||||||
Non-current liabilities | ||||||||
Financial instruments with preferred rights | 2,106,334 | - | - | |||||
Borrowings | 3,643 | 5,921 | 872 | |||||
Lease liabilities | 29,124 | 40,090 | 5,905 | |||||
Total non-current liabilities | 2,139,101 | 46,011 | 6,777 | |||||
Current liabilities | ||||||||
Trade payables | 49,955 | 26,595 | 3,917 | |||||
Contract liabilities | 18,189 | 6,132 | 903 | |||||
Other payables and accruals | 109,683 | 263,576 | 38,821 | |||||
Amounts due to related parties | 34 | - | - | |||||
Borrowings | 19,514 | 53,097 | 7,820 | |||||
Lease liabilities | 15,363 | 15,459 | 2,277 | |||||
Total current liabilities | 212,738 | 364,859 | 53,738 | |||||
Total liabilities | 2,351,839 | 410,870 | 60,515 | |||||
Net (liabilities)/assets | (1,778,331 | ) | 1,836,056 | 270,422 | ||||
SHAREHOLDERS’ (DEFICIT)/EQUITY | ||||||||
(Deficit)/equity attributable to owners of the Company | ||||||||
Share capital | 17 | 59 | 9 | |||||
Share premium | - | 6,657,562 | 980,553 | |||||
(3,578 | ) | - | - | |||||
Other reserves | 69,207 | 18,233 | 2,685 | |||||
Accumulated losses | (1,843,977 | ) | (4,839,798 | ) | (712,825 | ) | ||
Total shareholders’ (deficit)/equity | (1,778,331 | ) | 1,836,056 | 270,422 | ||||
Source:
2020 GlobeNewswire, Inc., source