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AnPac Bio Reports Fiscal Year 2021 Annual Financial ResultsPHILADELPHIA, May 16, 2022 (GLOBE NEWSWIRE) -- AnPac Bio-Medical Science Co., Ltd. (“AnPac Bio,” the “Company” or “we”) (NASDAQ: ANPC), a biotechnology company with operations in China and the United States, announced today its annual financial results for the year ended December 31, 2021. Financial Highlights for Fiscal Year 2021
(1) Non-GAAP net loss is defined as net loss excluding change in fair value of convertible debts and stock-based compensation. For more information, refer to “Use of Non-GAAP Financial Measures” and “Reconciliations of Non-GAAP Results” at the end of this press release. Business Highlights for Fiscal Year 2021
Dr. Chris Yu, Co-CEO and Co-Chairman of AnPac Bio commented: “In 2021, we continue to lay a strong foundation in innovation, product development, clinical trial validations, and medical device certifications for growth in the next few years. We built up a strong global lead in multi-cancer screening and detection sample size and data, with the global number one ranking in multi-cancer test volume by US market firm Frost-Sullivan. Our on-going cancer test follow-up study, whose enrollment at 26,372 individuals at the end of 2021, is one of the largest studies in the world for multi- cancer test studies and continues to generate strong clinical validations for our CDA technology at medical institutions and hospitals for confirmed cancer and pre-cancer cases for individuals who had tested initially using our CDA tests during general population cancer screening and risk assessment. Moving forward, we will continue efforts to reduce our costs, including general and administrative costs, and make strong efforts in our marketing and sales.” Financial Results for Fiscal Year 2021 Revenue Total revenues decreased by 12.3% to RMB18.0 million (US$2.8 million) in fiscal year 2021 from RMB20.5 million (US$3.1 million) in fiscal year 2020, primarily due to a significant decrease in our revenue from cancer screening and detection tests. Cost of Revenues Cost of revenues decreased by 24.9% to RMB5.7 million (US$0.9 million) in fiscal year 2021 from RMB7.6 million in fiscal year 2020. The decrease was in line with a decrease of our revenue from CDA-based tests. Gross Profit and Gross Margin Gross profit decreased by 4.9% to RMB12.3 million (US$1.9 million) in fiscal year 2021 from RMB12.9 million in fiscal year 2020. Gross margin was 68.1% in fiscal year 2021, an increase of 5.3 percentage points from 62.8% in fiscal year 2020. Selling and Marketing Expenses Selling and marketing expenses increased by 8.9% to RMB21.4 million (US$3.4 million) in fiscal year 2021 from RMB19.7 million in fiscal year 2020, primarily due to higher share-based compensation as we granted more options to our marketing and sales personnel. Research and Development Expenses Research and development expenses increased by 40.0% to RMB16.2 million (US$2.5 million) in fiscal year 2021 from RMB11.6 million in fiscal year 2020, This increase was also attributable to an increase in our research and development related materials and higher staff costs and share-based compensation for our research and development personnel. General and Administrative Expenses General and administrative expenses increased by 7.9% to RMB80.7 million (US$12.7 million) in fiscal year 2021 from RMB74.8 million in fiscal year 2020, primarily due to increased staff compensation incurred in 2021. Change in fair value of convertible debt The Company recognized the convertible debt at fair value. The Company recognized an aggregated unrealized loss of approximately RMB9.1 million (US$1.4 million) and unrealized gain of approximately RMB6.6 million in fiscal year 2021 and 2020, respectively, due to changes in fair value of convertible debt. Gain from fair value change in equity investment In fiscal year 2021, the Company recorded a gain from fair value change in equity investment of approximately RMB3.2 million (US0.5 million) due to the acquisition of Anpai Shanghai. Net Loss Net loss increased to RMB120.1 million (US$18.8 million) in fiscal year 2021, compared to RMB80.6 million in fiscal year 2020. Basic and diluted loss per share was RMB8.72 (US$1.37) in fiscal year 2021, compared to that of RMB7.19 in fiscal year 2020. Balance Sheet As of December 31, 2021, the Company had cash and cash equivalents of RMB9.3 million (US$1.5 million), compared to RMB3.0 million as of December 31, 2020. Cash Flow Net cash used in operating activities was RMB71.7 million (US$11.3 million) in fiscal year 2021, compared to RMB58.9 million in fiscal year 2020. Net cash used in investing activities was RMB3.9 million (US$0.6 million) in fiscal year 2021, compared to RMB2.5 million in fiscal year 2020. Net cash provided by financing activities was RMB83.4 million (US$13.1 million) in fiscal year 2021, compared to RMB60.9 million in fiscal year 2020. About AnPac Bio AnPac Bio is a biotechnology company focused on early cancer screening and detection, with 150 issued patents as of September 30, 2021. With two certified clinical laboratories in China and one CLIA and CAP accredited clinical laboratory in the United States, AnPac Bio performs a suite of cancer screening and detection tests, including CDA (Cancer Differentiation Analysis), bio-chemical, immunological, and genomics tests. According to a report by Frost & Sullivan, AnPac Bio ranked first globally in multi-cancer screening and detection test sample volume (accumulative to January 2021). AnPac Bio’s CDA technology platform has been shown in retrospective validation studies to be able to detect the risk of over 20 different cancer types with high sensitivity and specificity. For more information, please visit: https://www.Anpacbio.com. For investor and media inquiries, please contact: Company: Phil Case, Marketing and Investor Relations Phone: +1-267-810-6776 (US) Email: [email protected] For more information, please visit: https://www.Anpacbio.com. For investor and media inquiries, please contact: Company: Investor Relations: Safe Harbor Statement This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are made under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and are relating to the Company’s future financial and operating performance. The Company has attempted to identify forward-looking statements by terminologies including “believes,” “estimates,” “anticipates,” “expects,” “plans,” “projects,” “intends,” “potential,” “target,” “aim,” “predict,” “outlook,” “seek,” “goal” “objective,” “assume,” “contemplate,” “continue,” “positioned,” “forecast,” “likely,” “may,” “could,” “might,” “will,” “should,” “approximately” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. These statements are based on current expectations, assumptions and uncertainties involving judgments about, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company’s control. These statements also involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results to be materially different from those expressed or implied by any forward-looking statement. Known and unknown risks, uncertainties and other factors include, but are not limited to, the implementation of our business model and growth strategies; trends and competition in the cancer screening and detection market; our expectations regarding demand for and market acceptance of our cancer screening and detection tests and our ability to expand our customer base; our ability to obtain and maintain intellectual property protections for our CDA technology and our continued research and development to keep pace with technology developments; our ability to obtain and maintain regulatory approvals from the NMPA, the FDA and the relevant U.S. states and have our laboratories certified or accredited by authorities including the CLIA; our future business development, financial condition and results of operations and our ability to obtain financing cost-effectively; potential changes of government regulations; general economic and business conditions in China and elsewhere; our ability to hire and maintain key personnel; our relationship with our major business partners and customers; and the duration of the coronavirus outbreaks and their potential adverse impact on the economic conditions and financial markets and our business and financial performance, such as resulting from reduced commercial activities due to quarantines and travel restrictions instituted by China, the U.S. and many other countries around the world to contain the spread of the virus. Additionally, all forward-looking statements are subject to the “Risk Factors” detailed from time to time in the Company’s most recent Annual Report on Form 20-F and other filings with the U.S. Securities and Exchange Commission. Because of these and other risks, uncertainties and assumptions, undue reliance should not be placed on these forward-looking statements. In addition, these statements speak only as of the date of this press release and, except as may be required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
Use of Non-GAAP Financial Measures Non-GAAP net loss is calculated as net income adjusted for change in fair value of convertible debts and stock-based compensation expense. The non-GAAP financial measures are presented to enhance investors’ overall understanding of the Company’s financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of the historical non-GAAP financial measures to its most directly comparable GAAP financial measures. As non-GAAP financial measures have material limitations as analytical metrics and may not be calculated in the same manner by all companies, they may not be comparable to other similarly titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measures as a substitute for, or superior to, such metrics in accordance with US GAAP.
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