BEIJING, Oct. 12, 2022 (GLOBE NEWSWIRE) — Genetron Holdings Limited (“Genetron Health” or the “Company”, NASDAQ: GTH), a number one precision oncology platform firm in China that makes a speciality of providing molecular profiling exams, early most cancers screening merchandise and companion diagnostics improvement, at present reported its unaudited monetary outcomes for the second quarter ended June 30, 2022.
Recent Business Highlights
- Received College of American Pathologists (CAP) Accreditation for its laboratory in Maryland.
- Presented 27 new analysis abstracts on the 2022 American Society of Clinical Oncology (ASCO) Annual Meeting and American Association for Cancer Research (AACR) 2022 Annual Meeting, highlighting Genetron Health’s patented One-Step™ Seq Method and core merchandise together with Onco PanScan™, to be used in full-cycle most cancers administration.
- Launched the Genetron Health Cancer Early Screening Center, and the Genetron Health Future Science and Technology Experience Hall in Wuxi, Jiangsu Province of East China. The new services will additional help the event of nationwide initiatives for early screening for complete prevention & management of liver most cancers and the “rural revitalization – medical help” venture, in addition to to advertise the event of science popularization.
- Launched Onco SonarTM, a 170-gene pan-cancer stable tumor NGS liquid biopsy assay, which incorporates 106 genes of sturdy scientific significance and 64 genes that happen in excessive frequency in fundamental most cancers populations. The assay permits knowledgeable therapy choices for superior solid-tumor most cancers sufferers and identifies therapy choices or appropriate scientific trials for sufferers earlier than first-line remedy or amid illness development.
- Received CE mark for 2 new exams, Human B Lymphocyte Minimal Residual Disease Testing Kit Seq-MRD® and FusionScan Plus Kit for Human Multi-Genes.
- Continued to advance in-hospital efforts with 62 hospital companions, of which 31 have been IVD in-hospital companions as of June 30, 2022.
- Launched COVID-19 testing providers in May as a part of the local people’s routine efforts to handle the pandemic in Beijing.
Second Quarter 2022 Financial Highlights
- Generated whole income of RMB 137.7 million (US $20.6 million) within the second quarter of 2022, representing a 1.9% lower over the identical interval in 2021.
- LDT income was RMB 114.9 million (US $17.1 million), representing a 31.8% improve over the identical interval in 2021, together with RMB 48.9 million (US $7.3 million) of COVID-19 testing service income.
- IVD income was RMB 9.3 million (US $1.4 million), representing a 78.8% lower year-over-year.
- Development providers income was RMB 13.6 million (US $2.0 million), representing a 42.8% improve over the identical interval in 2021.
Second Quarter 2022 Unaudited Financial Results
Total income for the second quarter of 2022 decreased by 1.9% to RMB 137.7 million (US $20.6 million) within the second quarter of 2022 from RMB 140.5 million in the identical interval of 2021.
Diagnosis and monitoring income decreased by 5.2% to RMB 124.2 million (US $18.5 million) within the second quarter of 2022 from RMB 131.0 million in the identical interval of 2021, primarily attributable to a lower in income from the IVD product gross sales.
- Revenue generated from the supply of LDT providers elevated by 31.8% to RMB 114.9 million (US $17.1 million) throughout the second quarter of 2022 from RMB 87.1 million in the identical interval of 2021. This improve was primarily pushed by the COVID-19 testing service income of RMB 48.9 million (US $7.3 million), which was included in our second quarter gross sales of LDT providers and offset by decreases in prognosis and monitoring and early screening providers. LDT diagnostic exams, excluding COVID-19 testing, offered within the second quarter 2022 totaled roughly 5,292 items, representing a lower of twenty-two.6% in comparison with the variety of LDT diagnostic exams offered in the identical interval of 2021. The lower was primarily pushed by the COVID-19 pandemic state of affairs in main Chinese cities.
- Revenue generated from the sale of IVD merchandise decreased by 78.8% to RMB 9.3 million (US $1.4 million) within the second quarter of 2022 from RMB 43.8 million within the second quarter of 2021. The lower was primarily pushed by the COVID-19 pandemic state of affairs in main Chinese cities.
Revenue generated from improvement providers elevated by 42.8% to RMB 13.6 million (US $2.0 million) within the second quarter of 2022, from RMB 9.5 million in the identical interval of 2021. The improve was primarily pushed by the rise in biopharma providers.
Gross revenue decreased by 40.6% to RMB 56.1 million (US $8.4 million) within the second quarter of 2022 from RMB 94.5 million in the identical interval of 2021. Gross margin decreased to 40.7% for the second quarter of 2022, in comparison with 67.2% in the identical interval of 2021, primarily pushed by product combine shift and the low gross margins of COVID-19 testing providers ensuing from authorities pricing protocols.
Operating bills elevated by 16.2% to RMB 226.2 million (US $33.8 million) for the three months ended June 30, 2022, from RMB 194.6 million in the identical interval of 2021.
Selling bills elevated by 7.0% to RMB 94.7 million (US $14.1 million) within the second quarter of 2022 from RMB 88.5 million in the identical interval of 2021. Selling bills as a proportion of revenues elevated to 68.7% within the second quarter of 2022 from 63.0% in the identical interval of 2021. The rising variety of salespeople primarily drove the rise.
Administrative bills elevated by 10.2% to RMB 60.1 million (US $9.0 million) within the second quarter of 2022 from RMB 54.6 million in the identical interval of 2021. Administrative bills as a proportion of revenues elevated to 43.7% within the second quarter of 2022 from 38.8% within the second quarter of 2021. The improve was primarily pushed by elevated administrative prices related to conducting COVID-19 testing.
Research and improvement bills elevated by 9.8% to RMB 61.6 million (US $9.2 million) within the second quarter of 2022 from RMB 56.2 million in the identical interval of 2021. Research and improvement bills as a proportion of revenues elevated to 44.7% within the second quarter of 2022 from 40.0% in the identical interval of 2021. The will increase have been pushed by larger R&D headcount and associated bills, together with product improvement and scientific trial actions.
As a results of the above, working loss was RMB 170.1 million (US $25.4 million) for the three months ended June 30, 2022, in comparison with RMB 100.2 million for the three months ended June 30, 2021.
Finance costs-net elevated to RMB 66.1 million (US $9.9 million) within the second quarter of 2022 from finance income-net of RMB 8.0 million in the identical interval of 2021. The improve was pushed by the overseas forex trade loss due to the vital change in trade charge between RMB and USD.
Loss for the interval was RMB 236.2 million (US $35.3 million) for the three months ended June 30, 2022, in comparison with RMB 92.1 million for the three months ended June 30, 2021.
Non-IFRS loss for the interval, outlined as loss for the interval excluding share-based compensation bills, was RMB 228.0 million (US $34.0 million) for the three months ended June 30, 2022, in comparison with RMB 79.6 million for the three months ended June 30, 2021. Please check with the part on this press launch titled “Non-IFRS Financial Measures” for particulars.
Basic loss per atypical share for loss attributable to house owners of the Company was RMB 0.51 (US $0.08) for the second quarter of 2022, in contrast with a fundamental loss per atypical share for loss attributable to house owners of the Company of RMB 0.20 for a similar interval of 2021. Excluding share-based compensation bills, non-IFRS fundamental loss per atypical share for loss attributable to house owners of the Company was RMB 0.49 (US $0.07) for the second quarter of 2022, in contrast with non-IFRS fundamental loss per atypical share for loss attributable to house owners of the Company of RMB 0.17 for a similar interval of 2021. Diluted loss per atypical share for loss attributable to house owners of the Company is equal to fundamental loss per atypical share for loss attributable to house owners of the Company. Each ADS represents 5 atypical shares, par worth US$0.00002 per share. Please check with the part on this press launch titled “Non-IFRS Financial Measures” for particulars.
Cash and money equivalents and present monetary belongings at truthful worth by means of revenue or loss have been RMB 472.7 million (US $70.6 million) as of June 30, 2022.
Recent Development
On August 22, 2022, the Company introduced that it obtained a preliminary non-binding provide dated August 21, 2022, to amass all of the excellent atypical shares, together with these represented by the American depositary shares of the Company (ADSs), for US $0.27 per Ordinary Share or US $1.36 per ADS in money. Since receiving the proposal, the Company’s Board of Directors has shaped a particular committee and retained Kroll, LLC as its unbiased monetary advisor and Davis Polk & Wardwell LLP as its unbiased authorized counsel to judge this provide and different potential strategic alternate options the Company could pursue.
Exchange Rate Information
All translations made within the monetary statements or elsewhere on this press launch produced from RMB into United States {dollars} (“US$”) are solely for comfort and calculated on the charge of US $1.00 = RMB 6.6981, representing the trade charge as of June 30, 2022, set forth within the H.10 statistical launch of the U.S. Federal Reserve Board. No illustration is made that the RMB quantities might have been, or could possibly be, transformed, realized or settled into US$ at that charge, or at every other charge, on June 30, 2022.
Non-IFRS Financial Measures
The Company makes use of non-IFRS loss and non-IFRS loss per share for loss attributable to house owners of the Company for the 12 months/interval, that are non-IFRS monetary measures, in evaluating its working outcomes and for monetary and operational decision-making functions. The Company believes that non-IFRS loss and non-IFRS loss per share for loss attributable to house owners of the Company assist determine underlying traits within the Company’s business that might in any other case be distorted by the impact of sure bills that the Company consists of in its loss for the 12 months/interval. The Company believes that non-IFRS loss and non-IFRS loss per share for loss attributable to house owners of the Company for the 12 months/interval present helpful details about its outcomes of operations, enhances the general understanding of its previous efficiency and future prospects and permits for better visibility with respect to key metrics utilized by its administration in its monetary and operational decision-making.
Non-IFRS loss and non-IFRS loss per share for loss attributable to house owners of the Company for the 12 months/interval shouldn’t be thought of in isolation or construed as an alternative choice to working revenue, loss for the 12 months/interval or every other measure of efficiency or as an indicator of its working efficiency. Investors are inspired to evaluate non-IFRS loss and non-IFRS loss per share for loss attributable to house owners of the Company for the 12 months/interval and the reconciliation to its most immediately comparable IFRS measures. Non-IFRS loss and non-IFRS loss per share for loss attributable to house owners of the Company for the 12 months/interval offered right here might not be akin to equally titled measures offered by different firms. Other firms could calculate equally titled measures in another way, limiting their usefulness as comparative measures to the Company’s knowledge. The Company encourages traders and others to evaluate its monetary info in its entirety and never depend on a single monetary measure.
Non-IFRS loss and non-IFRS loss per share for loss attributable to house owners of the Company for the 12 months/interval signify loss for the 12 months/interval excluding share-based compensation bills, truthful worth change of economic devices with most popular rights and different lack of monetary devices with most popular rights (if relevant).
Please see the “Unaudited Non-IFRS Financial Measures” included on this press launch for a full reconciliation of non-IFRS loss for the 12 months/interval to loss for the 12 months/interval and non-IFRS loss per share for loss attributable to house owners of the Company for the 12 months/interval to loss per share for loss attributable to house owners of the Company for the 12 months/interval.
About Genetron Holdings Limited
Genetron Holdings Limited (“Genetron Health” or the “Company”) (Nasdaq: GTH) is a number one precision oncology platform firm in China that makes a speciality of most cancers molecular profiling and harnesses superior applied sciences in molecular biology and knowledge science to remodel most cancers therapy. The Company has developed a complete oncology portfolio that covers the complete spectrum of most cancers administration, addressing wants and challenges from early screening, prognosis and therapy suggestions, in addition to steady illness monitoring and care. Genetron Health additionally companions with world biopharmaceutical firms and gives custom-made providers and merchandise. For extra info, please go to ir.genetronhealth.com.
Safe Harbor Statement
This press launch comprises forward-looking statements. These statements are made beneath the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that aren’t historic info, together with statements in regards to the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements contain inherent dangers and uncertainties, and a lot of components might trigger precise outcomes to vary materially from these contained in any forward-looking assertion. In some circumstances, forward-looking statements will be recognized by phrases or phrases similar to “may”, “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or different related expressions. Further info concerning these and different dangers, uncertainties or components is included within the Company’s filings with the SEC. All info supplied on this press launch is as of the date of this press launch, and the Company doesn’t undertake any responsibility to replace such info, besides as required beneath relevant legislation.
Investor Relations Contact
US:
Philip Trip Taylor
Principal | Gilmartin Group
[email protected]
Media Relations Contact
Yuxin Shou
Genetron Health
[email protected]
Edmond Lococo
ICR
[email protected]
Mobile: +86 138-1079-1408
[email protected]
GENETRON HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS
| For the three months ended |
For the six months ended |
||||||||||||||||
| June 30, 2021 |
June 30, 2022 |
June 30, 2021 |
June 30, 2022 |
||||||||||||||
| RMB’000 |
RMB’000 |
US$’000 |
RMB’000 |
RMB’000 |
US$’000 |
||||||||||||
| Revenue | 140,485 | 137,749 | 20,565 | 232,546 | 248,070 | 37,036 | |||||||||||
| Cost of income | (46,021 | ) | (81,656 | ) | (12,191 | ) | (83,533 | ) | (130,507 | ) | (19,484 | ) | |||||
| Gross revenue | 94,464 | 56,093 | 8,374 | 149,013 | 117,563 | 17,552 | |||||||||||
| Selling bills | (88,516 | ) | (94,695 | ) | (14,137 | ) | (148,187 | ) | (185,539 | ) | (27,700 | ) | |||||
| Administrative bills | (54,577 | ) | (60,136 | ) | (8,978 | ) | (99,180 | ) | (110,378 | ) | (16,479 | ) | |||||
| Research and improvement bills |
(56,162 | ) | (61,641 | ) | (9,203 | ) | (106,136 | ) | (141,200 | ) | (21,081 | ) | |||||
| Net impairment losses on monetary and contract belongings |
(3,474 | ) | (8,749 | ) | (1,306 | ) | (13,304 | ) | (21,848 | ) | (3,262 | ) | |||||
| Other revenue and positive aspects/(losses) – web | 8,081 | (989 | ) | (148 | ) | 8,611 | (8,603 | ) | (1,284 | ) | |||||||
| Operating bills | (194,648 | ) | (226,210 | ) | (33,772 | ) | (358,196 | ) | (467,568 | ) | (69,806 | ) | |||||
| Operating loss | (100,184 | ) | (170,117 | ) | (25,398 | ) | (209,183 | ) | (350,005 | ) | (52,254 | ) | |||||
| Finance revenue | 9,447 | 541 | 81 | 5,179 | 1,412 | 211 | |||||||||||
| Finance prices | (1,409 | ) | (66,602 | ) | (9,943 | ) | (3,180 | ) | (62,479 | ) | (9,328 | ) | |||||
| Finance revenue/(prices) – web | 8,038 | (66,061 | ) | (9,862 | ) | 1,999 | (61,067 | ) | (9,117 | ) | |||||||
| Loss earlier than revenue tax |
(92,146 | ) | (236,178 | ) | (35,260 | ) | (207,184 | ) | (411,072 | ) | (61,371 | ) | |||||
| Income tax expense | – | – | – | – | – | – | |||||||||||
| Loss for the interval | (92,146 | ) | (236,178 | ) | (35,260 | ) | (207,184 | ) | (411,072 | ) | (61,371 | ) | |||||
| Loss attributable to: | |||||||||||||||||
| Owners of the Company | (91,820 | ) | (235,215 | ) | (35,116 | ) | (204,574 | ) | (409,587 | ) | (61,149 | ) | |||||
| Non-controlling pursuits | (326 | ) | (963 | ) | (144 | ) | (2,610 | ) | (1,485 | ) | (222 | ) | |||||
| (92,146 | ) | (236,178 | ) | (35,260 | ) | (207,184 | ) | (411,072 | ) | (61,371 | ) | ||||||
| Loss per share for loss attributable to house owners of the Company | RMB | RMB | USD | RMB | RMB | USD | |||||||||||
| -Basic and diluted | (0.20 | ) | (0.51 | ) | (0.08 | ) | (0.45 | ) | (0.88 | ) | (0.13 | ) | |||||
| Loss per ADS for loss attributable to house owners of the Company | |||||||||||||||||
| -Basic and diluted | (1.00 | ) | (2.54 | ) | (0.38 | ) | (2.23 | ) | (4.42 | ) | (0.66 | ) | |||||
| Shares utilized in loss per share computation: | |||||||||||||||||
| -Basic and diluted | 459,903,803 | 463,590,375 | 463,590,375 | 458,999,227 | 463,231,584 | 463,231,584 | |||||||||||
| ADS utilized in loss per ADS computation: | |||||||||||||||||
| -Basic and diluted | 91,980,761 | 92,718,075 | 92,718,075 | 91,799,845 | 92,646,316 | 92,646,316 | |||||||||||
GENETRON HOLDINGS LIMITED
UNAUDITED NON-IFRS FINANCIAL MEASURE
| For the three months ended |
For the six months ended |
||||||||||||||||
| June 30, 2021 |
June 30, 2022 |
June 30, 2021 | June 30, 2022 |
||||||||||||||
| RMB’000 |
RMB’000 |
US$’000 |
RMB’000 |
RMB’000 |
US$’000 |
||||||||||||
| Loss for the interval | (92,146 | ) | (236,178 | ) | (35,260 | ) | (207,184 | ) | (411,072 | ) | (61,371 | ) | |||||
| Adjustments: | |||||||||||||||||
| Share-based compensation |
12,504 | 8,144 | 1,216 | 21,754 | 19,488 | 2,909 | |||||||||||
| Non-IFRS Loss | (79,642 | ) | (228,034 | ) | (34,044 | ) | (185,430 | ) | (391,584 | ) | (58,462 | ) | |||||
| Attributable to: | |||||||||||||||||
| Owners of the Company | (79,316 | ) | (227,071 | ) | (33,900 | ) | (182,820 | ) | (390,099 | ) | (58,240 | ) | |||||
| Non-controlling pursuits | (326 | ) | (963 | ) | (144 | ) | (2,610 | ) | (1,485 | ) | (222 | ) | |||||
| (79,642 | ) | (228,034 | ) | (34,044 | ) | (185,430 | ) | (391,584 | ) | (58,462 | ) | ||||||
| Non-IFRS loss per share for loss attributable to house owners of the Company | RMB | RMB | USD | RMB | RMB | USD | |||||||||||
| -Basic and diluted | (0.17 | ) | (0.49 | ) | (0.07 | ) | (0.40 | ) | (0.84 | ) | (0.13 | ) | |||||
| Non-IFRS loss per ADS(5 atypical shares equal to 1 ADS) for loss attributable to house owners of the Company |
|||||||||||||||||
| -Basic and diluted | (0.86 | ) | (2.45 | ) | (0.37 | ) | (1.99 | ) | (4.21 | ) | (0.63 | ) | |||||
| Shares utilized in non-IFRS loss per share computation: | |||||||||||||||||
| -Basic and diluted | 459,903,803 | 463,590,375 | 463,590,375 | 458,999,227 | 463,231,584 | 463,231,584 | |||||||||||
| ADS utilized in non-IFRS loss per ADS computation: | |||||||||||||||||
| -Basic and diluted | 91,980,761 | 92,718,075 | 92,718,075 | 91,799,845 | 92,646,316 | 92,646,316 | |||||||||||
GENETRON HOLDINGS LIMITED
UNAUDITED REVENUE AND SEGMENT INFORMATION
| Diagnosis and monitoring |
Diagnosis and monitoring |
Development providers |
Total | ||||
| – provision of LDT providers |
– sale of IVD merchandise |
||||||
| RMB’000 | RMB’000 | RMB’000 | RMB’000 | ||||
| Three months ended June 30, 2021 | |||||||
| Revenue | 87,138 | 43,827 | 9,520 | 140,485 | |||
| Segment revenue | 61,890 | 31,312 | 1,262 | 94,464 | |||
| Three months ended June 30, 2022 | |||||||
| Revenue | 114,872 | 9,283 | 13,594 | 137,749 | |||
| Segment revenue | 48,236 | 4,681 | 3,176 | 56,093 | |||
| Six months ended June 30, 2021 | |||||||
| Revenue | 158,966 | 59,093 | 14,487 | 232,546 | |||
| Segment revenue | 110,701 | 36,534 | 1,778 | 149,013 | |||
| Six months ended June 30, 2022 | |||||||
| Revenue | 196,383 | 27,307 | 24,380 | 248,070 | |||
| Segment revenue | 100,287 | 13,615 | 3,661 | 117,563 |
GENETRON HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
| As of December 31, 2021 | As of June 30, 2022 | |||||
| RMB’000 | RMB’000 | US$’000 | ||||
| ASSETS | ||||||
| Non-current belongings | ||||||
| Property, plant and tools | 110,285 | 155,414 | 23,203 | |||
| Right-of-use belongings | 52,074 | 49,634 | 7,410 | |||
| Intangible belongings | 20,695 | 27,892 | 4,164 | |||
| Financial belongings at truthful worth by means of revenue or loss | 49,780 | 49,201 | 7,346 | |||
| Prepayments | 37,610 | 31,460 | 4,697 | |||
| Total non-current belongings | 270,444 | 313,601 | 46,820 | |||
| Current belongings | ||||||
| Inventories | 35,603 | 55,023 | 8,215 | |||
| Contract belongings | 7,775 | 9,888 | 1,476 | |||
| Other present belongings | 30,705 | 29,886 | 4,462 | |||
| Trade receivables | 282,113 | 309,056 | 46,141 | |||
| Other receivables and prepayments | 97,895 | 113,020 | 16,873 | |||
| Amounts due from associated events | 597 | 212 | 32 | |||
| Financial belongings at truthful worth by means of revenue or loss | 151,443 | 145,128 | 21,667 | |||
| Derivative monetary devices | 2,002 | – | – | |||
| Cash and money equivalents | 639,042 | 327,551 | 48,902 | |||
| Total present belongings | 1,247,175 | 989,764 | 147,768 | |||
| Total belongings | 1,517,619 | 1,303,365 | 194,588 | |||
GENETRON HOLDINGS LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS （CONTINUED）
| As of December 31, 2021 | As of June 30, 2022 | ||||||||
| RMB’000 | RMB’000 | US$’000 | |||||||
| LIABILITIES | |||||||||
| Non-current liabilities | |||||||||
| Borrowings | – | 19,194 | 2,866 | ||||||
| Lease liabilities | 33,865 | 29,967 | 4,474 | ||||||
| Other non-current liabilities | 8,612 | 9,181 | 1,371 | ||||||
| Total non-current liabilities | 42,477 | 58,342 | 8,711 | ||||||
| Current liabilities | |||||||||
| Trade payables | 55,767 | 53,687 | 8,015 | ||||||
| Contract liabilities | 11,962 | 25,996 | 3,881 | ||||||
| Other payables and accruals | 157,232 | 157,172 | 23,465 | ||||||
| Amounts as a result of associated events | 3 | 1,307 | 195 | ||||||
| Borrowings | 19,554 | 89,958 | 13,430 | ||||||
| Lease liabilities | 20,572 | 21,978 | 3,281 | ||||||
| Total present liabilities | 265,090 | 350,098 | 52,267 | ||||||
| Total liabilities | 307,567 | 408,440 | 60,978 | ||||||
| Net belongings | 1,210,052 | 894,925 | 133,610 | ||||||
| SHAREHOLDERS’ EQUITY | |||||||||
| Equity attributable to house owners of the Company | |||||||||
| Share capital | 61 | 61 | 9 | ||||||
| Share premium | 6,711,234 | 6,717,362 | 1,002,876 | ||||||
| Other reserves | (69,091 | ) | 20,726 | 3,095 | |||||
| Accumulated losses | (5,436,613 | ) | (5,846,200 | ) | (872,814 | ) | |||
| 1,205,591 | 891,949 | 133,166 | |||||||
| Non-controlling pursuits | 4,461 | 2,976 | 444 | ||||||
| Total shareholders’ fairness | 1,210,052 | 894,925 | 133,610 | ||||||
