Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2022 shares | |
Document and Entity Information | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2022 |
Entity File Number | 001-39328 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Genetron Holdings Ltd |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 1-2/F, Building 11, Zone 1 |
Entity Address, Address Line Two | No.8 Life Science Parkway |
Entity Address, Address Line Three | Changping District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 102206 |
Entity Central Index Key | 0001782594 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 452,807,305 |
Entity Voluntary Filers | No |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Entity Interactive Data Current | Yes |
Document Shell Company Report | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Auditor Firm ID | 1424 |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Location | People’s Republic of China |
Business Contact | |
Document and Entity Information | |
Entity Address, Address Line One | 1-2/F, Building 11, Zone 1 |
Entity Address, Address Line Two | No.8 Life Science Parkway |
Entity Address, Address Line Three | Changping District |
Entity Address, City or Town | Beijing |
Entity Address, Country | CN |
Entity Address, Postal Zip Code | 102206 |
Contact Personnel Name | Sizhen Wang |
Country Region | 86 |
City Area Code | 10 |
Local Phone Number | 5090-7500 |
Contact Personnel Email Address | sizhen.wang@genetronhealth.com |
Ordinary shares [member] | |
Document and Entity Information | |
Title of 12(b) Security | Ordinary shares, par value US$0.00002 per share* |
Security Exchange Name | NASDAQ |
No Trading Symbol Flag | true |
ADS | |
Document and Entity Information | |
Trading Symbol | GTH |
Title of 12(b) Security | American depositary shares, each ADS representing five ordinary shares, par value US$0.00002 per share |
Security Exchange Name | NASDAQ |
CONSOLIDATED STATEMENTS OF LOSS
CONSOLIDATED STATEMENTS OF LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 CNY (¥) ¥ / shares | Dec. 31, 2020 CNY (¥) ¥ / shares | |
Employee benefit expenses | ||||
Revenue | ¥ 650,706 | $ 94,344 | ¥ 531,950 | ¥ 424,485 |
Cost of revenue | (369,278) | (53,540) | (193,983) | (164,268) |
Gross profit | 281,428 | 40,804 | 337,967 | 260,217 |
Selling expenses | (364,564) | (52,857) | (343,161) | (246,959) |
Administrative expenses | (266,908) | (38,698) | (227,001) | (126,318) |
Research and development expenses | (290,286) | (42,087) | (253,950) | (148,999) |
Net loss allowance for financial and contract assets | (59,010) | (8,556) | (37,032) | (14,843) |
Other income and gains/(losses) - net | (2,666) | (387) | 5,329 | 8,526 |
Operating expenses | (983,434) | (142,585) | (855,815) | (528,593) |
Operating loss | (702,006) | (101,781) | (517,848) | (268,376) |
Finance income | 2,861 | 415 | 20,501 | 28,330 |
Finance costs | (111,485) | (16,164) | (5,251) | (5,627) |
Finance income/(costs) - net | (108,624) | (15,749) | 15,250 | 22,703 |
Fair value loss of financial instruments with preferred rights | 0 | (2,823,370) | ||
Loss before income tax | (810,630) | (117,530) | (502,598) | (3,069,043) |
Income tax expense | 0 | 0 | 0 | |
Loss for the year | (810,630) | (117,530) | (502,598) | (3,069,043) |
Loss attributable to: | ||||
Owners of the Company | (808,403) | (117,207) | (496,238) | ¥ (3,069,043) |
Non-controlling interests | ¥ (2,227) | $ (323) | ¥ (6,360) | |
Loss per share for loss attributable to owners of the Company | ||||
Basic | ¥ / shares | ¥ (1.74) | ¥ (1.08) | ¥ (10.18) | |
Ordinary shares [member] | ||||
Loss per share for loss attributable to owners of the Company | ||||
Basic | (per share) | (1.74) | $ (0.25) | (1.08) | (10.18) |
Diluted | (per share) | (1.74) | (0.25) | (1.08) | (10.18) |
ADS | ||||
Loss per share for loss attributable to owners of the Company | ||||
Basic | (per share) | (8.71) | (1.26) | (5.39) | (50.92) |
Diluted | (per share) | ¥ (8.71) | $ (1.26) | ¥ (5.39) | ¥ (50.92) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Loss for the year | ¥ (810,630) | $ (117,530) | ¥ (502,598) | ¥ (3,069,043) |
Items that may be reclassified to profit or loss | ||||
Exchange differences on currency translation of the Company's subsidiaries | (67,346) | (9,764) | 11,252 | 10,325 |
Items that will not be reclassified to profit or loss | ||||
Changes in fair value of financial instruments with preferred rights due to own credit risk | 0 | (72) | ||
Exchange differences on currency translation of the Company | 196,444 | 28,482 | (50,610) | (161,467) |
Other comprehensive (loss)/income for the year, net of tax | 129,098 | 18,718 | (39,358) | (151,214) |
Total comprehensive loss for the year | (681,532) | (98,812) | (541,956) | (3,220,257) |
Total comprehensive loss attributable to: | ||||
Owners of the Company | (679,305) | (98,489) | (535,596) | (3,220,257) |
Non-controlling interests | (2,227) | (323) | (6,360) | |
Total comprehensive Income(loss) for the year | ¥ (681,532) | $ (98,812) | ¥ (541,956) | ¥ (3,220,257) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Non-current assets | |||
Property, plant and equipment | ¥ 138,753 | $ 20,117 | ¥ 110,285 |
Right-of-use assets | 38,884 | 5,638 | 52,074 |
Intangible assets | 32,068 | 4,649 | 20,695 |
Financial assets at fair value through profit or loss | 50,496 | 7,321 | 49,780 |
Prepayments | 6,173 | 895 | 37,610 |
Total non-current assets | 266,374 | 38,620 | 270,444 |
Current assets | |||
Inventories | 42,427 | 6,151 | 35,603 |
Contract assets | 14,697 | 2,131 | 7,775 |
Other current assets | 9,472 | 1,373 | 30,705 |
Trade receivables | 243,123 | 35,250 | 282,113 |
Other receivables and prepayments | 65,431 | 9,487 | 97,895 |
Amounts due from related parties | 110 | 16 | 597 |
Financial assets at fair value through profit or loss | 157,426 | 22,825 | 151,443 |
Derivative financial instruments | 2,002 | ||
Cash and cash equivalents | 176,266 | 25,556 | 639,042 |
Total current assets | 708,952 | 102,789 | 1,247,175 |
Total assets | 975,326 | 141,409 | 1,517,619 |
Non-current liabilities | |||
Borrowings | 7,098 | 1,029 | |
Lease liabilities | 20,245 | 2,935 | 33,865 |
Other non-current liabilities | 9,760 | 1,416 | 8,612 |
Total non-current liabilities | 37,103 | 5,380 | 42,477 |
Current liabilities | |||
Trade payables | 63,048 | 9,141 | 55,767 |
Contract liabilities | 9,589 | 1,390 | 11,962 |
Other payables and accruals | 186,006 | 26,968 | 157,232 |
Amounts due to related parties | 3 | ||
Borrowings | 109,734 | 15,910 | 19,554 |
Lease liabilities | 21,490 | 3,116 | 20,572 |
Total current liabilities | 389,867 | 56,525 | 265,090 |
Total liabilities | 426,970 | 61,905 | 307,567 |
Net assets | 548,356 | 79,504 | 1,210,052 |
SHAREHOLDERS' EQUITY | |||
Share capital | 61 | 9 | 61 |
Share premium | 6,734,905 | 976,469 | 6,711,234 |
Other reserves | 56,172 | 8,144 | (69,091) |
Accumulated losses | (6,245,016) | (905,442) | (5,436,613) |
Total equity attributable to owners of the company | 546,122 | 79,180 | 1,205,591 |
Non-controlling interests | 2,234 | 324 | 4,461 |
Total shareholders' equity | ¥ 548,356 | $ 79,504 | ¥ 1,210,052 |
CONSOLIDATED STATEMENTS OF CHAN
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 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Cash flows from operating activities | ||||
Cash used in operations | ¥ (460,197) | $ (66,722) | ¥ (524,144) | ¥ (300,897) |
Net cash used in operating activities | (460,197) | (66,722) | (524,144) | (300,897) |
Cash flows from investing activities | ||||
Purchase of property, plant and equipment | (72,078) | (10,450) | (73,489) | (36,655) |
Purchase of intangible assets | (10,062) | (1,459) | (12,404) | (13,371) |
Purchase of wealth management products | (1,180,045) | (171,090) | (1,650,355) | (1,628,558) |
Redemption of wealth management products | 1,165,980 | 169,051 | 1,623,538 | 1,620,924 |
Investment income from wealth management products | 3,366 | 488 | 4,991 | 4,476 |
Purchase of equity security | (13,721) | |||
Purchase of other investments | (28,895) | (19,000) | ||
Purchase of derivative financial instruments | (63,742) | (9,242) | (415,346) | (68,078) |
Settlement of derivative financial instruments | 65,744 | 9,532 | 424,251 | 69,628 |
Placement of deposits with initial terms of over three months | (5,000) | |||
Redemption of deposits with initial terms of over three months | 5,000 | |||
Proceeds from sale of subsidiaries | 2,000 | |||
Others | 3,005 | 436 | (10,566) | (294) |
Net cash used in investing activities | (87,832) | (12,734) | (136,275) | (84,649) |
Cash flows from financing activities | ||||
Proceeds from issuance of ordinary shares | 1,676,816 | |||
Proceeds from ADS depository | 23,069 | |||
Proceeds from issuance of financial instruments with preferred rights | 70,026 | |||
Repurchase of ordinary shares | (4,102) | |||
Proceeds from investors to the Company | 48,617 | 299,051 | ||
Repayments to investors from the Group | (48,452) | (314,388) | ||
Proceeds from exercise of awards | 843 | 123 | 2,169 | |
Capital injection from non-controlling interests | 10,821 | |||
Proceeds from borrowings | 129,973 | 18,844 | 25,153 | 61,213 |
Repayments of borrowings | (32,979) | (4,782) | (69,106) | (20,703) |
Principal elements of lease payments | (21,940) | (3,181) | (21,708) | (19,577) |
Interests paid | (6,030) | (874) | (4,899) | (4,942) |
Payments in relation to listing expenses | (1,000) | (21,691) | ||
Others | 1,500 | 217 | (260) | |
Net cash generated from/(used in) financing activities | 71,367 | 10,347 | (58,405) | 1,744,512 |
Net increase/(decrease) in cash and cash equivalents | (476,662) | (69,109) | (718,824) | 1,358,966 |
Cash and cash equivalents at beginning of year | 639,042 | 92,652 | 1,375,766 | |
Exchange differences on cash and cash equivalents | 13,886 | 2,013 | (17,900) | (123,154) |
Cash and cash equivalents at end of year | ¥ 176,266 | $ 25,556 | ¥ 639,042 | ¥ 1,375,766 |
General information and group s
General information and group structure | 12 Months Ended |
Dec. 31, 2022 | |
General information and group structure | |
General information and group structure | 1. General information and group structure 1.1 General information Genetron Holdings Limited (the “Company”) was incorporated in the Cayman Islands on April 9, 2018 as an exempted company with limited liability under the Companies Law (2020 Revision) of the Cayman Islands. The address of the Company’s registered office is at the office of Walkers Corporate Limited, Cayman Corporate Centre, 190 Elgin Avenue, George Town, Grand Cayman KY1-9008, Cayman Islands. The Company completed its initial public offering (“IPO”) on June 19, 2020 and the Company’s American Depositary Shares (“ADSs”) have been listed on the Nasdaq Global Market (“NASDAQ”) since then. Each ADS of the Company represents five ordinary shares. The Company, its subsidiaries, the variable interest entities (“VIEs”) and their subsidiaries (“subsidiaries of VIEs”) are collectively referred to as the “Group”. The Group is principally engaged in precision oncology testing and development services (the “Listing Business”) in the People’s Republic of China (“PRC” or “China”). 1.2 Group structure Prior to the incorporation of the Company and the completion of a group reorganization in 2019 (the “Reorganization”), the Listing Business was carried out by Genetron Health (Beijing) Co., Ltd. (“Genetron Health”) and its subsidiaries. Genetron Health was incorporated in the PRC on May 7, 2015 with Mr. Weiwu He, Mr. Sizhen Wang and Mr. Hai Yan considered as founding individuals (collectively the “Founders”). For the purpose of preparation for the listing of the shares of the Company, the Group underwent the Reorganization upon completion of which, each of the equity holders of Genetron Health became the shareholders of the Company with substantially the same rights and shareholding percentages in Genetron Health before and after the Reorganization, and the Company became the holding company of the companies now comprising the Group. As of December 31, 2022, the Company has consolidated the following principal subsidiaries, VIEs and subsidiaries of VIEs: 1. General information and group structure (Continued) 1.2 Group structure (Continued) Effective Company name Place and date of incorporation Registered/issued capital interest held Principal activities Subsidiaries directly held : Genetron HK Hong Kong, June 6, 2018 HK$10,000 (10,000 ordinary shares) 100 % Investment holding Genetron Health, Inc. Delaware, United States of America August 23, 2019 US$ 1 (1,000 ordinary shares) 100 % Molecular diagnostic services Genetron (Tianjin) Co., Ltd. * Tianjin, PRC March 8, 2019 RMB1,000,000,000 100 % Biotechnology development and technical services Shanghai Junran Bio-Technology Co., Ltd. Shanghai, PRC July 1, 2019 RMB500,000,000 100 % Biotechnology development and technical services Genetron (Wuxi) Business Management Co., Ltd. ** Wuxi, PRC December 3, 2020 US$50,000,000 90 % Investment holding Genetron (Hainan) Biotech Co., Ltd. Haikou, PRC January 18, 2022 RMB300,000,000 100 % Biotechnology development and technical services VIEs: Genetron Health Beijing, PRC May 7, 2015 RMB57,438,800 100 % Gene-related detection services Genetron (Wuxi) Biotech Co., Ltd. Wuxi, PRC October 14, 2020 RMB20,000,000 100 % Gene-related detection services Subsidiaries of VIEs: Shanghai Genetron Bio-Technology Co., Ltd. Shanghai, PRC July 8, 2015 RMB20,000,000 100 % Investment holding Genetron Health (Chongqing) Co., Ltd. Chongqing, PRC March 1, 2016 RMB20,000,000 100 % Investment holding and IVD products sales Beijing Genetron Biotechnology Co., Ltd. Beijing, PRC March 11, 2016 RMB20,000,000 100 % Investment holding Guangzhou Genetron Bio-Technology Co., Ltd. Guangzhou, PRC July 4, 2019 RMB10,000,000 100 % Investment holding Beijing Genetron Medical Laboratory Co., Ltd. Beijing, PRC November 5, 2015 RMB12,000,000 100 % Gene-related detection services Shanghai Genetron Medical Laboratory Co., Ltd. Shanghai, PRC December 14, 2015 RMB30,000,000 100 % Gene-related detection services Chongqing Genetron Medical Laboratory Co., Ltd. Chongqing, PRC August 11, 2016 RMB20,000,000 100 % Gene-related detection services Guangzhou Genetron Medical Laboratory Co., Ltd. Guangzhou, PRC July 8, 2019 RMB10,000,000 100 % Gene-related detection services Genetron Health Technologies, Inc. Delaware, United States of America April 28, 2015 US$ 10,000,000 (1,000 ordinary shares) 100 % Research services The place of incorporation is also their principal place of business and operations. All of them are limited liability companies. * registered as wholly foreign owned enterprise under PRC law ** registered as non-wholly foreign owned enterprise under PRC law The VIEs and subsidiaries of VIEs are consolidated by the Company through Contractual Arrangements (Note 2.4.1(a)). Other Group companies including Genetron (Tianjin) Co., Ltd. and Genetron (Wuxi) Business Management Co., Ltd. (collectively referred as “PRC Subsidiaries”) are controlled and consolidated by the Company through direct or indirect equity ownerships. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Summary of significant accounting policies This note provides a list of significant accounting policies adopted in the preparation of these consolidated financial statements. These policies have been consistently applied to all the periods presented, unless otherwise stated. 2.1 Basis 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 RMB 268,376,000 517,848,000 702,006,000 300,897,000 524,144,000 460,197,000 1,210,052,000 548,356,000 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. 2. Summary of significant accounting policies (Continued) 2.2 New 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. 2.3 New 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. 2. Summary of significant accounting policies (Continued) 2.4 Principles of consolidation and equity accounting 2.4.1 Consolidation 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) 2.4 Principles of consolidation and equity accounting (Continued) 2.4.1 Consolidation (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$’000 Note 2.5(d) Non-current assets 189,393 198,809 28,825 Current assets 556,527 507,893 73,638 Total assets 745,920 706,702 102,463 Non-current liabilities 1,402,408 1,650,200 239,257 Current liabilities 267,888 512,288 74,275 Total liabilities 1,670,296 2,162,488 313,532 Year ended December 31, 2020 2021 2022 2022 RMB’000 RMB’000 RMB’000 US$’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 The above includes intercompany balances and transactions which have been eliminated on the Company’s consolidated financial statements. As of December 31, 2021 and 2022, the total assets of the Group’s VIEs and subsidiaries of VIEs mainly include cash and cash equivalents, financial assets at fair value through profit or loss, trade receivables, other receivables and prepayments, inventories, property, plant and equipment as well as right-of-use assets; and the total liabilities of the Group’s VIEs and subsidiaries of VIEs mainly include trade payables, amounts due to Group companies, other payables and accruals, borrowings as well as lease liabilities. Amounts due to Group companies are RMB1,449,810,000 and RMB1,834,631,000 as of December 31, 2021 and 2022 respectively. The PRC Subsidiaries did not charge any service fees from the VIEs and subsidiaries of VIEs during the reported periods. During 2020, 2021 and 2022, loans advanced from Group companies to the VIEs totalled RMB499,424,000, RMB928,600,000 and RMB394,740,000 and repayments of such loans totalled nil, RMB282,480,000 and RMB141,507,000, respectively. 2. Summary of significant accounting policies (Continued) 2.4 Principles of consolidation and equity accounting (Continued) 2.4.1 Consolidation (Continued) (c) Business combination The Group applies the acquisition method to account for business combinations except for business combinations under common control. For acquisition method, the consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognized amounts of acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in profit or loss. There is no business combination during the reported periods. 2.4.2 Associates, joint arrangements and equity method (a) Associates Associates are all entities over which the Group has significant influence but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. The Group’s investments in associates in the form of redeemable instruments are financial assets designated at fair value through profit or loss. Investments in associates in the form of ordinary shares with significant influence are accounted for using the equity method of accounting (Note 2.4.2(c)), after initially being recognized at cost. 2. Summary of significant accounting policies (Continued) 2.4.2 Associates, joint arrangements and equity method (Continued) (b) Joint arrangements Investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. The Group recognizes its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These are incorporated in the financial information under the appropriate headings. Interests in joint ventures are accounted for using the equity method (Note 2.4.2(c)), after initially being recognized at cost. The Group has no joint arrangements during the reported periods. 2. Summary of significant accounting policies (Continued) 2.4 Principles of consolidation and equity accounting (Continued) 2.4.2 Associates, joint arrangements and equity method (Continued) (c) Equity method Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment. Where the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the entity. Unrealized gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity-accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in Note 2.8. 2.4.3 Parent company only financial information Interests in subsidiaries in parent company only financial information are accounted for using the equity method (Note 2.4.2(c)), after initially being recognized at cost. Parent company only condensed financial information is disclosed in Note 35. 2. Summary of significant accounting policies (Continued) 2.5 Foreign currency translation (a) Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The financial statements are presented in Renminbi (“RMB”), which is the functional currency of most entities within the Group, unless otherwise stated. (b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates, are generally recognized in profit or loss. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statements of loss within finance income/(costs). All other foreign exchange gains and losses are presented in the statements of loss within other income and gains/(losses). (c) Group companies The results and financial position of all the Group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: - assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; - income and expenses for each statement of comprehensive income/(loss) are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and - all resulting currency translation differences are recognized in other comprehensive income/(loss). (d) Convenience translation Translations of the consolidated balance sheets, the consolidated statements of loss, comprehensive loss and cash flows from RMB into United States dollars (“US$”) as of and for the year ended December 31, 2022 are solely for the convenience of the readers and calculated at the rate of US$1.00=RMB6.8972 representing the exchange rate as of December 30, 2022 set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate, or at any other rate, on December 30, 2022. 2. Summary of significant accounting policies (Continued) 2.6 Property, plant and equipment Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives or, in the case of leasehold improvements and certain leased plant and equipment, the shorter lease term as follows: 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 The assets’ residual values and useful lives are reviewed and adjusted if appropriate at the end of each reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.8). Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within other income and gains/(losses) in the statements of loss. 2.7 Intangible assets (a) Software Acquired software licenses are capitalized on the basis of the costs incurred to acquire and bring the specific software into usage. These costs are amortized using the straight-line method over their estimated useful lives of about 5-10 years. Costs associated with maintaining software programs are recognized as expense as incurred. (b) Patented technologies Separately acquired patent technologies are shown at historical cost. Patent technologies acquired in a business combination are recognized at fair value at the acquisition date. They have finite useful lives based on the terms of patents and are subsequently carried at cost less accumulated amortization and impairment losses. (c) Other intangible assets Other intangible assets were recognized upon a historical acquisition of a subsidiary. It is amortized using the straight-line method over the estimated useful life of the intangible assets of 4 years. 2. Summary of significant accounting policies (Continued) 2.7 Intangible assets (Continued) (d) Research and development The Group incurs costs and efforts on research and development activities. Research expenditures are charged to the profit or loss as an expense in the period the expenditure is incurred. Development costs are recognized as assets if they can be directly attributable to a newly developed service or product and all the following can be demonstrated: - the technical feasibility to complete the development project so that it will be available for use or sale; - the intention to complete the development project to use or sell the service or product; - the ability to use or sell the service or product; - the manner in which the development project will generate probable future economic benefits for the Group; - the availability of adequate technical, financial and other resources to complete the development project and use or sell the service or product; and - the expenditure attributable to the asset during its development can be reliably measured. The development cost of an internally generated intangible asset is the sum of the expenditure incurred from the date the asset meets the recognition criteria above to the date when it is available for use. The development costs capitalized in connection with the intangible asset include costs of materials and services used or consumed, employee costs incurred in the creation of the asset and an appropriate portion of relevant overheads. Capitalized development costs are amortized using the straight-line method over the life of the related service or product. Amortization shall begin when the asset is available for use. Development expenditures not satisfying the above criteria are recognized in the profit or loss as incurred. 2.8 Impairment of non-financial assets Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. No goodwill or intangible assets with an indefinite useful life were recognized during the reported periods. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. 2. Summary of significant accounting policies (Continued) 2.9 Financial assets (a) Classification The Group classifies its financial assets in the following measurement categories: - those to be measured subsequently at fair value (either through other comprehensive income (“OCI”) or through profit or loss), and - those to be measured at amortized cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through OCI (“FVOCI”). The Group reclassifies debt investments when and only when its business model for managing those assets changes. (b) Recognition and derecognition Regular way purchases and sales of financial assets are recognized on trade date, bein |
Financial risk management
Financial risk management | 12 Months Ended |
Dec. 31, 2022 | |
Financial risk management | |
Financial risk management | 3. Financial risk management 3.1 Financial risk factors The Group’s activities expose it to a variety of financial risks: market risk (including interest rate risk and exchange risk), credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance. Risk management is carried out by the senior management of the Group. (a) Market risk (i) Interest rate risk The Group’s interest rate risk primarily arises from wealth management products (Note 21(ii)), bank deposits (Note 23) and borrowings (Note 28). Those carried at variable rates expose the Group to cash flow interest rate risk whereas those at fixed rates expose the Group to fair value interest rate risk. Interest amounts continue to be insignificant during the reported periods. (ii) Exchange risk The Group is exposed to exchange risk arising from foreign currency exposures, primarily with respect to US$. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the functional currency of the Group entity. If the RMB had strengthened/weakened by 5% against the US$ with all other variables held constant, the net loss in 2020, 2021 and 2022 would decrease/increase by approximately RMB 14,577,000, RMB 43,498,000 and RMB 61,584,000 respectively. 3. Financial risk management (Continued) 3.1 Financial risk factors (Continued) (b) Credit risk Credit risk primarily arises from wealth management products, cash and cash equivalents, trade and other receivables, amounts due from related parties and contract assets. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheets. The credit risk of wealth management products and cash and cash equivalents is limited because the counterparties are mainly state-owned or reputable commercial institutions located in the PRC and Hong Kong. For trade and other receivables, amounts due from related parties and contract assets, management makes periodic as well as individual assessments on the recoverability based on historical credit loss experience, as adjusted for forward looking information based on macroeconomic factors affecting the ability of the debtors to settle the receivables. Management considers quantitative and qualitative factors and applies the simplified approach for the Group’s trade receivables and contract assets without a significant financing component by using a lifetime expected loss provision. The trade receivables and contract assets from customers with known financial difficulties or with significant doubt on collection of receivables are assessed individually for a loss allowance. As of December 31, 2022, the balance of individually assessed receivables was RMB1,269,000 (2021: RMB1,296,000) and the loss allowance in respect of these individually assessed receivables was RMB1,269,000 (2021: RMB1,296,000). Management assesses remaining customers by grouping them based on shared credit risk characteristics. Management determines an expected loss rate for each group based on historical credit loss experience as well as current and forecasts of future economic conditions in assessing the lifetime expected credit losses. 3. Financial risk management (Continued) 3.1 Financial risk factors (Continued) (b) The expected loss rates are adjusted to reflect the different credit risk characteristics, timing of settlements, etc. related to those customers. Between Between Between Within 6 months 1 to 2 2 to 3 After 3 As of December 31, 2021 6 months to 1 year years years years Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 IVD product customers Expected loss rate 9 % 19 % 34 % 81 % 100 % Trade receivables and contract assets, gross 135,288 29,937 34,985 2,310 — 202,520 Loss allowance 11,984 5,628 11,896 1,880 — 31,388 Hospital customers Expected loss rate 13 % 14 % 29 % 55 % 100 % Trade receivables and contract assets, gross 19,872 9,784 17,046 13,521 612 60,835 Loss allowance 2,504 1,356 4,995 7,376 612 16,843 Other customers Expected loss rate 3 % 12 % 26 % 54 % 100 % Trade receivables and contract assets, gross 67,076 6,388 4,344 1,587 548 79,943 Loss allowance 1,859 765 1,144 863 548 5,179 Between Between Between Within 6 months 1 to 2 2 to 3 After 3 As of December 31, 2022 6 months to 1 year years years years Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 IVD product customers Expected loss rate 15 % 38 % 59 % 100 % 100 % Trade receivables and contract assets, gross 52,231 61,648 41,241 16,710 2,310 174,140 Loss allowance 7,990 23,403 24,191 16,710 2,310 74,604 Hospital customers Expected loss rate 12 % 14 % 26 % 41 % 66 % Trade receivables and contract assets, gross 12,628 14,550 17,295 16,851 8,871 70,195 Loss allowance 1,538 1,980 4,571 6,980 5,816 20,885 Other customers Expected loss rate 3 % 12 % 46 % 78 % 100 % Trade receivables and contract assets, gross 83,090 29,691 4,439 1,085 1,238 119,543 Loss allowance 2,798 3,653 2,035 845 1,238 10,569 3. Financial risk management (Continued) 3.1 Financial risk factors (Continued) (b) In view of the history of cooperation with debtors and the sound collection history of other receivables and amounts due from related parties, management believes that the credit risk inherent in these outstanding receivables is not significant. There are no significant increases in credit risk of the receivables comparing with initial recognition and so the 12-month expected credit loss approach is adopted. Loss allowance for trade and other receivables and contract assets were disclosed in Note 19, Note 20 and Note 6 respectively. (c) Liquidity risk The Group aims to maintain sufficient cash to meet obligations falling due as well as operating and capital requirements. The tables below analyze the Group’s financial liabilities into relevant maturity groupings based on the remaining period at each year-end date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Between Between Less than 1 and 2 2 and 5 Over 5 1 year years years years Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As of December 31, 2021 Borrowings 20,206 — — — 20,206 Lease liabilities 22,811 19,850 16,351 1,682 60,694 Trade payables 55,767 — — — 55,767 Other payables 92,488 — — — 92,488 Amounts due to related parties 3 — — — 3 Other non-current liabilities — — 13,961 — 13,961 Total 191,275 19,850 30,312 1,682 243,119 As of December 31, 2022 Borrowings 113,066 7,206 — — 120,272 Lease liabilities 23,145 12,359 10,141 — 45,645 Trade payables 63,048 — — — 63,048 Other payables 116,160 — — — 116,160 Other non-current liabilities — — 15,090 — 15,090 Total 315,419 19,565 25,231 — 360,215 3. Financial risk management (Continued) 3.2 Capital management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Group monitors capital by regularly reviewing the capital structure. The Group may adjust the amount of dividends paid to shareholders, provide returns for shareholders, issue new shares or sell assets to repay borrowings. The Group monitors capital on the basis of the debt-to-adjusted capital ratio. This ratio is calculated as net debt divided by adjusted capital. Net debt is calculated as total borrowings and lease liabilities less cash and cash equivalents. Adjusted capital comprises all components of equity as shown in the consolidated balance sheets. As of December 31, 2021 and 2022, the Group has no net debt outstanding. 3.3 Fair value estimation The table below analyzes the Group’s financial instruments carried at fair value as of December 31, 2021 and 2022 by level of the inputs to valuation techniques used to measure fair value. Such inputs are categorized into three levels within a fair value hierarchy as follows: (i) Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1). (ii) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). (iii) Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). 3. Financial risk management (Continued) 3.3 Fair value estimation (Continued) Level 1 Level 2 Level 3 Total Notes RMB’000 RMB’000 RMB’000 RMB’000 As of December 31, 2021 Assets Financial assets at fair value through profit or loss - other investments 21(i) — — 49,780 49,780 - wealth management products 21(ii) — — 144,361 144,361 - equity security 21(iii) 7,082 — — 7,082 Derivative financial instruments - foreign currency forwards 22 — 2,002 — 2,002 Total 7,082 2,002 194,141 203,225 As of December 31, 2022 Assets Financial assets at fair value through profit or loss - other investments 21(i) — — 50,496 50,496 - wealth management products 21(ii) — — 151,509 151,509 - equity security 21(iii) 5,917 — — 5,917 Total 5,917 — 202,005 207,922 There were no transfers between levels 1, 2 and 3 during the reported periods. Financial instruments in Level 3 If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3. Specific valuation techniques used to value financial instruments include: ● Quoted market prices or dealer quotes for similar instruments; ● Discounted cash flow model and unobservable inputs mainly including assumptions of expected future cash flows and discount rate; and ● A combination of observable and unobservable inputs, including risk-free rate, expected volatility, discount rate for lack of marketability, market multiples, etc. Level 3 instruments of the Group’s assets and liabilities include wealth management products and other investments measured at FVPL respectively. 3. Financial risk management (Continued) 3.3 Fair value estimation (Continued) The following table presents the movements in level 3 instruments for the reported periods. Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Wealth management products Opening balance 122,224 130,002 144,361 Additions 1,628,558 1,650,355 1,180,045 Gain/(loss) recognized in other income and gains/(losses) – net (Note 9) 4,652 (5,867) (12,363) Redemptions (1,625,106) (1,628,463) (1,169,346) Exchange differences (326) (1,666) 8,812 Closing balance 130,002 144,361 151,509 Other investments Opening balance — 19,609 49,780 Additions 19,000 28,895 — Fair value change recognized in profit or loss (Note 9) 609 1,668 (1,640) Exchange differences — (392) 2,356 Closing balance 19,609 49,780 50,496 The valuations of Level 3 instruments of wealth management products and other investments are set out in Note 21(ii) and Note 21(i), respectively. The carrying amounts of the Group’s other financial assets and liabilities, including cash and cash equivalents, trade and other receivables, trade and other payables, amounts due from/to related parties and borrowings, approximate their fair values. |
Critical accounting estimates a
Critical accounting estimates and judgments | 12 Months Ended |
Dec. 31, 2022 | |
Critical accounting estimates and judgments | |
Critical accounting estimates and judgments | 4. Critical accounting estimates and judgments The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgment in applying the Group’s accounting policies. Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Group and that are believed to be reasonable under the circumstances. (a) Loss allowance of receivables The Group applies the IFRS 9 simplified approach to measure expected credit losses which use a lifetime expected loss allowance and makes loss allowance based on assessments of the recoverability of the trade receivables and contract assets, including the current creditworthiness, the past collection history of each debtor and forward looking information. A considerable amount of judgment is required to estimate the expected loss rates. Where the actual result is different from the original estimate, such difference will impact the carrying value of the trade receivables and contract assets and loss allowances in the year in which such estimate is changed. 4. Critical accounting estimates and judgments (Continued) (b) Current and deferred income taxes (i) Deferred income tax The Group recognizes deferred tax assets based on estimates that it is probable to generate sufficient taxable profits in the foreseeable future against which the deductible losses will be utilized. The recognition of deferred tax assets mainly involves management’s judgments and estimations about the timing and the amount of taxable profits of the companies which have tax losses. (ii) Uncertain tax positions There are many transactions and events for which the ultimate tax determination is uncertain during the ordinary course of business. Significant judgment is required from the Group in determining the provision for income taxes. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. In determining the amount of current and deferred income tax, the Group takes into account the impact of uncertain tax positions and whether preferential tax rates, additional taxes, interest or penalties may be due and whether future taxable profits will be available to enable deferred tax assets resulting from deductible temporary differences and tax losses to be recognized. This assessment relies on estimates and assumptions and may involve a series of judgments about future events. New information may become available that causes the Group to change its judgment regarding the adequacy of existing tax liabilities. Such changes to tax liabilities will impact tax expense in the period that such a determination is made. (c) Consolidation of VIEs As disclosed in Note 2.4.1(b), notwithstanding the fact that the Group does not hold direct equity interests in the VIEs, it has power over the VIEs and receives substantially all the economic benefits from the business activities of the VIEs through the Contractual Arrangements. Accordingly, the VIEs and subsidiaries of VIEs’ financial statements have also been consolidated by the Company for accounting purposes. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment reporting | |
Segment reporting | 5. Segment reporting Management reviews the operating results of the business based on operating segments to make decisions about resources to be allocated. Management presents the following segments by which the CODM makes strategic decisions (Note 6): - Diagnosis and monitoring – provision for LDT services - Diagnosis and monitoring – sale of IVD products - Development services The major operating entities of the Group are domiciled in the PRC. Accordingly, substantially all of the Group’s operating results were derived from the PRC during the reported periods. As of December 31, 2021 and 2022, substantially all of the Group’s non-current assets were located in the PRC. |
Revenue and segment information
Revenue and segment information | 12 Months Ended |
Dec. 31, 2022 | |
Revenue and segment information | |
Revenue and segment information | 6. 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 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) 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 The Group has recognized the following 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 6. Revenue and segment information (Continued) Note: Contract assets arise from provision of services ahead of the agreed payment schedules for fixed-price contracts. The contract assets were aged within one year with insignificant credit risk. Contract liabilities mainly arise from the advance payments made by customers while the underlying services are yet to be provided. Most of these remaining obligations under such agreement are expected to be fulfilled within one year based on the estimation from management. |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2022 | |
Expenses by nature | |
Expenses by nature | 7. Expenses by nature Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Cost of inventories and consumables used (Note 17) 148,988 209,833 231,780 Employee benefit expenses (Note 8) 268,986 414,604 487,788 Depreciation on property, plant and equipment (Note 13) 33,466 36,865 50,693 Depreciation on right-of-use assets (Note 14) 18,277 23,821 22,125 Amortization on intangible assets (Note 15) 1,452 2,399 4,606 Loss allowance for trade and other receivables and contract assets 14,843 37,032 59,010 Promotion expenses 131,209 167,298 185,597 Rental, utilities and office expenses 16,347 27,472 25,130 Professional service fees 36,135 88,829 89,817 |
Employee benefit expenses
Employee benefit expenses | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefit expenses. | |
Employee benefit expenses | 8. Employee benefit expenses Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Wages, salaries and bonuses 195,462 279,443 361,797 Welfare expenses 8,637 10,711 23,167 Housing funds 14,799 21,299 26,610 Contributions to pension plans (Note) 20,137 49,007 58,721 Share-based compensation expenses (Note 27(d)) 29,951 54,144 17,493 268,986 414,604 487,788 Note: The employees of the Group in the PRC are members of a state-managed pension scheme operated by the PRC Government. The Group is required to contribute a specified percentage of payroll costs as determined by local government authority to the pension obligations to fund the benefits. The only obligation of the Group with respect to the retirement benefits scheme is to make the specified contribution under the scheme. There were no significant forfeited contributions during the reported periods. 8. Employee benefit expenses (Continued) Employee benefit expenses were charged in the following categories in the consolidated statements of loss: Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Cost of revenue 27,108 35,589 57,795 Selling expenses 101,379 142,699 148,963 Administrative expenses 64,610 101,957 121,185 Research and development expenses 75,889 134,359 159,845 268,986 414,604 487,788 |
Other income and gains - net
Other income and gains - net | 12 Months Ended |
Dec. 31, 2022 | |
Other income and gains - net | |
Other income and gains - net | 9. Other income and gains/(losses) – net Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Investment income from wealth management products 4,182 4,925 3,366 Dividends from equity security — 745 422 Fair value gain/(loss) on - wealth management products 470 (10,792) (15,729) - equity security (3,153) (3,011) (1,733) - other investments 609 1,668 (1,640) - derivative financial instruments 196 2,002 — Gain/(loss) on - settlement of derivative financial instruments 1,550 8,709 — - disposal of property, plant and equipment — — (302) - disposal of right-of-use assets — (846) (182) - disposal of subsidiaries — 2,305 — Government grants (Note) 3,869 3,991 8,710 Amortization on deferred income from ADS depository (Note 29) 2,405 4,373 3,756 Donations (2,327) (9,866) (678) Others 725 1,126 1,344 8,526 5,329 (2,666) Note: Government grants are subsidies received for compensating the Group’s research and development expenses incurred for certain projects and other operating activities. |
Finance income_(costs) - net
Finance income/(costs) - net | 12 Months Ended |
Dec. 31, 2022 | |
Finance income/(costs) - net | |
Finance income/(costs) - net | 10. Finance income/(costs) – net Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Finance income Interests from - bank deposits 433 1,189 1,947 - others — 204 914 Net exchange gains 27,897 19,108 — 28,330 20,501 2,861 Finance costs Interests on - lease liabilities (2,069) (2,999) (2,459) - borrowings (3,298) (1,311) (3,914) - redemption liabilities (Note 31) — (941) (1,148) Net exchange losses — — (103,964) Others (260) — — (5,627) (5,251) (111,485) Finance income/(costs) – net 22,703 15,250 (108,624) |
Income tax expense
Income tax expense | 12 Months Ended |
Dec. 31, 2022 | |
Income tax expense | |
Income tax expense | 11. Income tax expense Income tax expense is recognized based on the income tax rates in the following main tax jurisdictions where the Group operates for the reported periods. (a) Cayman Islands The Company is incorporated in the Cayman Islands as an exempted company with limited liabilities under the Companies Law of Cayman Islands and accordingly, is exempted from Cayman Islands income tax. (b) Hong Kong No Hong Kong profit tax was provided for as there was no estimated assessable profit that was subject to Hong Kong profits tax during the reported periods. 11. Income tax expense (Continued) (c) PRC Provision for PRC corporate income tax is calculated based on the statutory income tax rate of 25% on the assessable income of respective PRC Group companies during the reported periods in accordance with relevant PRC enterprise income tax rules and regulations (“EIT Law”) except for certain Group companies in PRC with preferential tax rates as detailed below. No provision for PRC corporate income tax has been made for the reported periods as the Group has no such assessable profit for the years. The reconciliation between the Group’s actual tax charge and the amount that is calculated based on the statutory income tax rate of 25% in the PRC is as follows: Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Loss before income tax (3,069,043) (502,598) (810,630) Tax credits calculated at statutory tax rate of 25% (767,261) (125,650) (202,658) Effects of preferential tax rates and different tax rates in other jurisdictions (Note (i)) 18,900 51,843 76,018 Expenses not deductible for income tax purpose (Note (ii)) 722,458 29,102 36,891 Super deduction of research and development expenses (8,390) (11,416) (11,056) Tax losses and deductible temporary differences for which no deferred income tax assets were recognized 34,293 56,121 100,805 Income tax expense — — — Note: (i) Certain Group companies in PRC have been eligible as High/New Technology Enterprises with preferential tax rate of 15% as set out in PRC EIT Law. (ii) These mainly include fair value loss of financial instruments with preferred rights during 2020. The Group did not recognize deferred income tax assets amounting to approximately RMB196 million and RMB297 million as of December 31, 2021 and 2022 respectively in respect of tax losses and deductible temporary differences that can be carried forward against future taxable income. The unrecognized tax losses of approximately RMB1,188 million and RMB1,705 million as of December 31, 2021 and 2022 will progressively expire until 2031 and 2032 respectively. As of December 31, 2021 and 2022, the Group did not have any significant unrecognized uncertain tax positions. |
Loss per share
Loss per share | 12 Months Ended |
Dec. 31, 2022 | |
Loss per share | |
Loss per share | 12. Loss per share Basic and diluted loss per share reflecting the effect of the issuance of ordinary shares by the Company are presented as follows. Basic loss per share is calculated by dividing the loss attributable to owners of the Company by the weighted average number of ordinary shares outstanding, excluding treasury shares which are detailed in Note 25. Restricted ordinary shares have been considered in the calculation when they vested on monthly basis. Year ended December 31, 2020 2021 2022 Loss attributable to owners of the Company (RMB’000) (3,069,043) (496,238) (808,403) Weighted average number of ordinary shares outstanding (in thousands) (Note) 301,380 460,547 463,976 Basic loss per share (RMB) (10.18) (1.08) (1.74) Basic loss per ADS (RMB) (50.92) (5.39) (8.71) Awards granted under share-based compensation plans and preferred shares are considered as potential dilutive shares throughout the reporting periods. However, due to the Group's negative financial results for the reported periods, the potential dilutive shares have anti-dilutive effect on loss per share if they are converted to ordinary shares. Thus diluted loss per share/ADS is equivalent to basic loss per share/ADS. Note: Movement of number of ordinary shares outstanding (excluding treasury shares) for the reported periods are shown as follows. Year ended December 31, 2020 2021 2022 in thousands in thousands in thousands At beginning of the year 123,584 456,707 462,869 Ordinary shares — issued upon IPO 80,000 — — — converted from preferred shares upon IPO 220,332 — — Restricted shares vested* 17,894 — — Awards vested** 14,897 6,162 1,928 At end of the year 456,707 462,869 464,797 * considered in the calculation when they vested on monthly basis ** represent awards with nominal subscription prices which have been vested but not yet exercised at end of the year |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment | |
Property, plant and equipment | 13. Property, plant and equipment Office Instruments equipment and and Transporting Leasehold equipment furniture equipment improvements Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As of January 1, 2020 Cost 147,658 3,953 469 21,081 173,161 Accumulated depreciation (73,095) (1,754) (166) (15,133) (90,148) Net book value 74,563 2,199 303 5,948 83,013 Year ended December 31, 2020 Opening net book value 74,563 2,199 303 5,948 83,013 Additions 19,573 908 — 6,896 27,377 Depreciation (28,038) (784) (112) (4,532) (33,466) Exchange differences (33) — — — (33) Closing net book value 66,065 2,323 191 8,312 76,891 As of December 31, 2020 Cost 167,085 4,861 469 27,977 200,392 Accumulated depreciation (101,020) (2,538) (278) (19,665) (123,501) Net book value 66,065 2,323 191 8,312 76,891 Year ended December 31, 2021 Opening net book value 66,065 2,323 191 8,312 76,891 Additions 58,169 1,683 — 10,827 70,679 Disposals (313) (54) — (35) (402) Depreciation (29,729) (910) (112) (6,114) (36,865) Exchange differences (17) (1) — — (18) Closing net book value 94,175 3,041 79 12,990 110,285 As of December 31, 2021 Cost 222,203 5,971 469 36,652 265,295 Accumulated depreciation (128,028) (2,930) (390) (23,662) (155,010) Net book value 94,175 3,041 79 12,990 110,285 Year ended December 31, 2022 Opening net book value 94,175 3,041 79 12,990 110,285 Additions 35,105 258 — 43,703 79,066 Disposals (318) (5) — (217) (540) Depreciation (42,319) (900) (56) (7,418) (50,693) Exchange differences 405 24 — 206 635 Closing net book value 87,048 2,418 23 49,264 138,753 As of December 31, 2022 Cost 256,216 6,152 469 77,144 339,981 Accumulated depreciation (169,168) (3,734) (446) (27,880) (201,228) Net book value 87,048 2,418 23 49,264 138,753 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Leases | 14. Leases (a) Amounts recognized in the consolidated balance sheets are as follows: (i) Right-of-use assets Office Properties equipment Total RMB’000 RMB’000 RMB’000 As of January 1, 2020 Cost 57,916 50 57,966 Accumulated depreciation (14,766) (18) (14,784) Net book value 43,150 32 43,182 Year ended December 31, 2020 Opening net book value 43,150 32 43,182 Additions 34,801 — 34,801 Depreciation (18,259) (18) (18,277) Closing net book value 59,692 14 59,706 As of December 31, 2020 Cost 92,717 50 92,767 Accumulated depreciation (33,025) (36) (33,061) Net book value 59,692 14 59,706 Year ended December 31, 2021 Opening net book value 59,692 14 59,706 Additions 17,495 — 17,495 Disposals (719) — (719) Depreciation (23,807) (14) (23,821) Exchange differences (587) — (587) Closing net book value 52,074 — 52,074 As of December 31, 2021 Cost 101,469 — 101,469 Accumulated depreciation (49,395) — (49,395) Net book value 52,074 — 52,074 Year ended December 31, 2022 Opening net book value 52,074 — 52,074 Additions 9,187 — 9,187 Disposals (1,215) — (1,215) Depreciation (22,125) — (22,125) Exchange differences 963 — 963 Closing net book value 38,884 — 38,884 As of December 31, 2022 Cost 97,940 — 97,940 Accumulated depreciation (59,056) — (59,056) Net book value 38,884 — 38,884 14. Leases (Continued) (a) (ii) Lease liabilities As of December 31, 2021 2022 RMB’000 RMB’000 Non-current 33,865 20,245 Current 20,572 21,490 54,437 41,735 (b) Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Interest expense (included in finance costs) (Note 10) 2,069 2,999 2,459 Expense relating to short-term leases (included in cost of revenue, selling expenses, administrative expenses and research and development expenses) 530 2,413 3,091 Expense relating to leases of low-value assets that are not shown above as short-term leases (included in cost of revenue, selling expenses, administrative expenses and research and development expenses) 521 214 332 (c) The total cash outflows for leases in 2020, 2021 and 2022 was RMB 22,726,000 , RMB 27,298,000 and RMB 28,032,000 , respectively. |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets | |
Intangible assets | 15. Intangible assets Patented Software technology Others Total RMB’000 RMB’000 RMB’000 RMB’000 As of January 1, 2020 Cost 7,679 230 2,030 9,939 Accumulated amortization and impairment (2,197) (230) (2,030) (4,457) Net book value 5,482 — — 5,482 Year ended December 31, 2020 Opening net book value 5,482 — — 5,482 Additions 8,253 — — 8,253 Amortization (1,452) — — (1,452) Exchange differences (18) — — (18) Closing net book value 12,265 — — 12,265 As of December 31, 2020 Cost 15,798 230 2,030 18,058 Accumulated amortization and impairment (3,533) (230) (2,030) (5,793) Net book value 12,265 — — 12,265 Year ended December 31, 2021 Opening net book value 12,265 — — 12,265 Additions 10,849 — — 10,849 Amortization (2,399) — — (2,399) Exchange differences (20) — — (20) Closing net book value 20,695 — — 20,695 As of December 31, 2021 Cost 26,582 230 2,030 28,842 Accumulated amortization and impairment (5,887) (230) (2,030) (8,147) Net book value 20,695 — — 20,695 Year ended December 31, 2022 Opening net book value 20,695 — — 20,695 Additions 16,098 — — 16,098 Disposals (329) — — (329) Amortization (4,606) — — (4,606) Exchange differences 210 — — 210 Closing net book value 32,068 — — 32,068 As of December 31, 2022 Cost 42,717 — — 42,717 Accumulated amortization and impairment (10,649) — — (10,649) Net book value 32,068 — — 32,068 |
Financial instruments by catego
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 |
Inventories
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. |
Other current assets
Other current assets | 12 Months Ended |
Dec. 31, 2022 | |
Other current assets | |
Other current assets | 18. Other current assets These include deductible value-added tax (“VAT”) balances which can offset against future VAT payables. |
Trade receivables
Trade receivables | 12 Months Ended |
Dec. 31, 2022 | |
Trade receivables | |
Disclosure of trade and other receivables. [text block] | 19. Trade receivables As of December 31, 2021 2022 RMB’000 RMB’000 Trade receivables, gross 336,136 346,683 Less: loss allowance (54,023) (103,560) 282,113 243,123 Trade receivables are generally due for settlement within 30 days, except for those of IVD product sales up to 12 months. As of December 31, 2021 and 2022, majority of the trade receivables are aged within one year. The expected credit losses of trade receivables and the Group’s exposure to credit risk are disclosed in Note 3.1(b). |
Other receivables and prepaymen
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 |
Financial assets at fair value
Financial assets at fair value through profit or loss | 12 Months Ended |
Dec. 31, 2022 | |
Financial assets at fair value through profit or loss | |
Financial assets at fair value through profit or loss. | 21. Financial assets at fair value through profit or loss As of December 31, 2021 2022 RMB’000 RMB’000 Non-current Other investments (Note (i)) 49,780 50,496 Current Wealth management products (Note (ii)) 144,361 151,509 Equity security (Note (iii)) 7,082 5,917 151,443 157,426 Note: (i) In 2020 the Group invested RMB 19 million in a biotechnology company and thereby obtained 30% of its equity interests with certain preferred rights in redemption, liquidation and anti-dilution. As such this is investment in an associate being designated as financial assets at FVPL. In 2021 the Group further invested RMB29 million in total in other biotechnology companies which are classified as financial assets at FVPL. Above fair values are measured based on discounted cash flow method. (ii) Wealth management products held by the Group with various maturities bear floating interest rates at ranges of 1.40 %— 3.76 % and 1.40% — 3.03% per annum as of December 31, 2021 and 2022 respectively. The underlying investments were mostly debt instruments with low to moderate risk levels. The fair values of wealth management products are based on discounted cash flows using their expected returns. (iii) This is investment of an equity security listed in Hong Kong held for trading with purchase cost of approximately RMB 14 million. Its fair value at end of reporting period is determined by closing price quoted in an active stock market. Changes in fair values of these financial assets are recorded in other income and gains/(losses) — net in the consolidated statements of loss. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative financial instruments | |
Derivative financial instruments | 22. Derivative financial instruments As of December 31, 2021, the Group had outstanding foreign currency forwards to sell US$ and buy RMB with maturities within one year. The fair values of these foreign currency forwards were based on the present value of the estimated future cash flows by reference to forward exchange rates and other factors at the balance sheet date. All of these were settled during 2022. |
Cash and cash equivalents
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. |
Share capital and share premium
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. |
Treasury shares
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. |
Reserves
Reserves | 12 Months Ended |
Dec. 31, 2022 | |
Reserves | |
Reserves | 26. Reserves (a) The share-based compensation reserve represents the fair value of the actual or estimated number of unvested restricted shares and unexercised awards granted to employees recognized in accordance with the accounting policy adopted for equity-settled share-based payments in Note 2.21 to the financial statements. (b) Other reserve mainly includes the reserve transferred from share-based compensation reserve upon vesting of restricted shares. (c) Other comprehensive losses comprise the exchange translation reserve which represents the foreign exchange differences arising from the translation of the financial statements of foreign operations in accordance with the accounting policy set out in Note 2.5(c) to the financial statements, and changes in the fair value of the financial instruments with preferred rights which are attributable to changes in the credit risk of that liability set out in Note 2.18. (d) In accordance with the PRC regulations and the articles of association of the PRC companies now comprising the Group, before annual profit distribution companies registered in the PRC are required to set aside 10% of its net profit for the year after offsetting any prior year losses as determined under relevant PRC accounting standards to the statutory surplus reserve fund. When the balance of such reserve reaches 50% of the company’s registered capital, any further appropriation is optional. No profit appropriation to the reserve fund was made for those Group companies for the reported periods as they were in accumulated loss positions. |
Share-based payment
Share-based payment | 12 Months Ended |
Dec. 31, 2022 | |
Share-based payment | |
Share-based payment | 27. Share-based payment (a) The Group has employee share incentive plans for its key employees, key management and consultants, which were approved by its board of directors. The purpose is to provide incentives and rewards to eligible participants for their contribution or potential contribution to the Group and to recruit and retain high calibre persons who are valuable to the Group. The plans provide for the issuance of up to an aggregate of 54,791,600 of the Company’s ordinary shares, out of which 21,340,740 and 16,534,690 ordinary shares have been issued but deemed not outstanding as of December 31, 2021 and 2022, respectively. Pursuant to the plans, a grantee has the right to subscribe for the ordinary shares at a price determined by the board of directors of the Company. The awards granted can only vest if the performance conditions (including certain annual performance rating and sales or development performance indicator, which have been defined on grant date) and service conditions are met. The service condition of the awards granted to employees and key management is usually four years since the grant date and 25% of the granted awards are progressively vested on each anniversary of the grant date. The service condition for consultants is one to three years. Grantees who leave the Group before the exercisable date will lose their entitlement to the vested awards. Awards granted typically expire in ten years from the grant date as stated in grant agreements. Participation in the plans is at the discretion of the board of directors of the Company and no individual has contractual right to participate in the plans or receive any guaranteed benefits. Set out below are movements of awards during the reported periods. Year ended December 31, 2020 2021 2022 Exercise Number of Exercise Number Exercise Number of price awards price of awards price awards (Note (iii)) (Note (iii)) (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$0.22 9,708,447 Note: (i) The shares are forfeited if the employment terminates or the performance condition is not met. 27. Share-based payment (Continued) (a) Share Incentive Plan (Continued) Note (Continued): (ii) Awards are only exercisable after vesting periods. (iii) Exercise prices are shown as weighted average as applicable. The weighted average remaining contractual lives of awards outstanding as of December 31, 2020, 2021 and 2022 are 7.3 years and 6.9 years and 6.1 years, respectively. Fair value of awards granted The Group used the discounted cash flow method to determine the underlying equity fair value and adopted equity allocation model to determine the fair value of the underlying ordinary shares prior to IPO, subsequent to which the fair value of the shares is calculated based on the quoted market price of the Company’s shares at the respective grant date. Based on the fair value of underlying ordinary shares, the Group used Binominal option-pricing model to determine the fair value of awards as of each of the grant dates. Key assumptions for the awards granted are set as below: Year of grant 2020 2021 2022 Fair values at grant date (US$ 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 (b) Restriction of ordinary shares held by Founders On May 7, 2015, an aggregate of 16,527,600 ordinary shares of Genetron Health at par value of RMB1.00 per share (equivalent to 82,638,000 ordinary shares of the Company at par value of US$0.03 per share, with each share of Genetron Health having been converted to five shares of the Company in July 2019) were issued to three directors, who are also Founders of Genetron Health. In accordance with Series A financing agreement on July 17, 2015, all the ordinary shares held by the individual Founders were put in escrow since that date with a five-year service condition (which was subsequently fulfilled during 2020). Such restriction was deemed as a compensatory arrangement for services to be provided by the Founders and therefore accounted for as a share-based compensation arrangement. 27. Share-based payment (Continued) (b) Restriction of ordinary shares held by Founders (Continued) The movement of the restricted shares for the years ended December 31, 2020, 2021 and 2022 are summarized as below: 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 — (c) Share-based payment to a Founder Pursuant to the Series A preferred shares agreement in July 2015, a Founder was granted the right to subscribe for shares of Genetron Health amounted to 3% to 5% of its total shares outstanding at par value of RMB1.00 per share if the appraised value of Genetron Health reached RMB590 million before Series B preferred shares financing. The shares had a five-year service condition (which was subsequently fulfilled during 2020). The market condition of target appraised value was met in 2016 and the Founder was allowed to subscribe for 2,173,600 shares (representing 5% of the total number of ordinary and preferred shares then outstanding) of Genetron Health at RMB1.00 per share (equivalent to 10,868,000 shares of the Company at par value of US$0.03 per share, with each share of Genetron Health having been converted to five shares of the Company in July 2019). 27. Share-based payment (Continued) (d) 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 |
Borrowings
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 payables and accruals
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. |
Financial instruments with pref
Financial instruments with preferred rights | 12 Months Ended |
Dec. 31, 2022 | |
Financial instruments with preferred rights | |
Financial instruments with preferred rights | 30. Financial instruments with preferred rights Prior to listing of the Company, the Group had completed a series of financing by issuing shares with preferred rights including conversion feature, liquidation preferences and redemption rights (“preferred shares”). The Group designated the entire instruments as financial liabilities at FVPL with the changes in the fair value recorded in the consolidated statements of loss, except for the changes in fair value due to own credit risk, which were recorded in other comprehensive losses. The accumulated fair value change due to own credit risk amounting to RMB27,355,000 was reclassified to accumulated losses upon conversion of these financial instruments with preferred rights into ordinary shares in 2020. 30. Financial instruments with preferred rights (Continued) Movements of financial instruments with preferred rights during the years ended December 31, 2020, 2021 and 2022 are: RMB’000 Year ended December 31, 2020 At January 1, 2020 2,106,334 Issuance (Note 24(i)) 70,026 Changes in fair value recognized in profit or loss 2,823,370 Changes in fair value due to own credit risk recognized in OCI 72 Conversion into ordinary shares upon IPO (4,999,811) Others 9 At December 31, 2020, 2021 and 2022 — |
Other non-current liabilities
Other non-current liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Other non-current liabilities | |
Other non-current liabilities | 31. Other non-current liabilities As of December 31, 2021 2022 RMB’000 RMB’000 Redemption liabilities (Note) 8,612 9,760 Note: The Company has a legal ownership of 90% in Genetron (Wuxi) Business Management Co., Ltd. (“Genetron Wuxi”) with the remaining 10% held by other investors which have injected capital of US$1,667,000 (equivalently to approximately RMB10,821,000) in January 2021 being recognized by the Group as non-controlling interests as a result of their ownership of risks and rewards associated with their 10% interests. Further the other investors have redemption rights upon the failure of an initial public offering of Genetron Wuxi before December 3, 2025. This event is not solely within control of the Group and thus gives rise to financial liabilities which have been recognized at present value of the redeemable amount being discounted back to RMB7,671,000 at initial subscription and subsequently measured at amortized cost. The redeemable amount is expected to be the sum of subscriptions and annual interests thereon at 6% per annum (less accumulated dividends) up to the date of redemption notification. |
Cash flow information
Cash flow information | 12 Months Ended |
Dec. 31, 2022 | |
Cash flow information | |
Cash flow information | 32. Cash flow information (a) Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Loss before income tax (3,069,043) (502,598) (810,630) Adjustments for: Depreciation on - property, plant and equipment 33,466 36,865 50,693 - right-of-use assets 18,277 23,821 22,125 Amortization on intangible assets 1,452 2,399 4,606 Loss allowance for trade and other receivables and contract assets 14,843 37,032 59,010 Investment income from wealth management products (4,182) (4,925) (3,366) Dividends from equity security — (745) (422) Fair value loss - net on financial assets at FVPL 1,878 10,133 19,102 (Gain)/loss on - settlement of derivative financial instruments (1,550) (8,709) — - disposal of property, plant and equipment — — 302 - disposal of right-of-use assets — 846 182 - disposal of subsidiaries — (2,305) — Amortization on deferred income of ADS depository (2,405) (4,373) (3,756) Finance (income)/costs - net (22,270) (14,061) 110,571 Share-based compensation expenses 29,951 54,144 17,493 Losses related to financial instruments with preferred rights 2,823,370 — — Others (110) — — Changes in working capital: - Inventories (7,075) (10,632) (6,824) - Contract assets (50) (7,277) (10,006) - Other current assets 7,211 5,795 21,233 - Trade receivables (95,719) (153,942) (10,568) - Other receivables and prepayments (22,894) (44,386) 24,427 - Amounts due from related parties 850 (383) 487 - Trade payables (9,073) 23,579 13,729 - Contract liabilities (9,772) 3,545 (2,373) - Other payables and accruals 11,948 32,054 43,791 - Amounts due to related parties — (21) (3) Cash used in operations (300,897) (524,144) (460,197) 32. Cash flow information (Continued) (b) Financial instruments Amounts with preferred due to Lease rights investors Borrowings liabilities (Note 30) (Note) (Note 28) (Note 14(a)(ii)) Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 At January 1, 2020 2,106,334 15,000 23,157 44,487 2,188,978 Cash received 70,026 299,051 61,213 — 430,290 Cash repaid — (314,388) (20,703) (19,577) (354,668) Non-cash movements (2,176,360) 337 409 34,691 (2,140,923) At December 31, 2020 — — 64,076 59,601 123,677 At January 1, 2021 — — 64,076 59,601 123,677 Cash received — 48,617 25,153 — 73,770 Cash repaid — (48,452) (69,106) (21,708) (139,266) Non-cash movements — (165) (569) 16,544 15,810 At December 31, 2021 — — 19,554 54,437 73,991 At January 1, 2022 — — 19,554 54,437 73,991 Cash received — — 129,973 — 129,973 Cash repaid — — (32,979) (21,940) (54,919) Non-cash movements — — 284 9,238 9,522 At December 31, 2022 — — 116,832 41,735 158,567 Note: During 2020 and 2021, certain investors subscribed for approximately RMB299 million and RMB49 million respectively of investments in the Company and received repayments of substantially the same amounts of their historical investments in Genetron Health in the same year. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Commitments | |
Commitments | 33. Commitments (a) As of December 31, 2021 2022 RMB’000 RMB’000 Equipment and intangible assets - Contracted but not provided for 34,772 162 (b) The Group leases certain office buildings under non-cancellable lease agreements. The Group has recognized right-of-use assets for these leases, except for short- term and low-value leases (Note 14). The future minimum lease payables under such non-cancellable leases not recognized in the financial statements at each year-end date are as follows: As of December 31, 2021 2022 RMB’000 RMB’000 No later than 1 year 1,271 853 Later than 1 year but no later than 3 years 38 22 1,309 875 |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related party transactions | |
Related party transactions | 34. Related party transactions Parties are considered to be related if one party has the ability, directly or indirectly, to control or exercise significant influence over the other party. Parties are also considered to be related if they are subject to common control. Members of key management of the Group and their close family members are also considered as related parties. 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 In addition to other related party transactions and balances disclosed elsewhere in these financial statements, the following is a summary of significant transactions and balances with related parties during the reported periods and at each year-end. (a) (b) (i) 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 (ii) 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 — 34. Related party transactions (Continued) (c) Balances with related parties (i) As of December 31, 2021 2022 RMB’000 RMB’000 Edigene (Beijing) Inc. 597 110 (ii) As of December 31, 2021 2022 RMB’000 RMB’000 Hangzhou ImmuQuad Biotechnologies, LLC 3 — (d) Key management compensation Key management includes directors and senior management personnel. The compensations paid or payable to key management for employee services are shown below: 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 |
Restricted net assets and paren
Restricted net assets and parent company only condensed financial information | 12 Months Ended |
Dec. 31, 2022 | |
Restricted net assets and parent company only condensed financial information | |
Restricted net assets and parent company only condensed financial information | 35. Restricted net assets and parent company only condensed financial information The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s subsidiaries and VIEs incorporated in the PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. In accordance with the PRC laws and regulations, statutory reserve funds shall be made and can only be used for specific purposes and are not distributable as cash dividends. As a result of these PRC laws and regulations that require annual appropriation of 10% of net after-tax profits to be set aside prior to payment of dividends as statutory surplus fund, unless such reserve fund reaches 50% of the entity’s registered capital, VIEs and subsidiaries of VIEs are restricted in their ability to transfer a portion of their net assets to the Company. Furthermore, cash transfers from the Company’s PRC subsidiaries to their parent companies outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency at the time of requesting such conversion may temporarily delay the ability of the PRC subsidiaries and consolidated affiliated entities to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency denominated obligations. The Company performs a test on the restricted net assets of its consolidated subsidiaries, VIEs and subsidiaries of VIEs (the “restricted net assets”) in accordance with Securities and Exchange Commission Regulation S-X Rule 4-08 (e) (3) “General Notes to Financial Statements” and concludes that the condensed financial information for the parent company is required to be presented. 35. Restricted net assets and parent company only condensed financial information (Continued) (a) Balance sheets As of December 31, 2021 2022 2022 RMB’000 RMB’000 US$’000 Note 2.5(d) ASSETS Non-current assets Interests in subsidiaries 1,138,922 558,800 81,018 Financial assets at fair value through profit or loss 25,503 27,859 4,039 Prepayments 19,766 — — Total non-current assets 1,184,191 586,659 85,057 Current assets Other receivables and prepayments 7,170 16,765 2,431 Amounts due from Group companies 6,713 735 106 Financial assets at fair value through profit or loss 91,562 83,207 12,063 Cash and cash equivalents 44,691 4,211 611 Total current assets 150,136 104,918 15,211 Total assets 1,334,327 691,577 100,268 LIABILITIES Non-current liabilities Amounts due to Group companies 75,457 106,688 15,468 Total non-current liabilities 75,457 106,688 15,468 Current liabilities Other payables and accruals 51,837 36,260 5,257 Amounts due to Group companies 1,442 2,507 363 Total current liabilities 53,279 38,767 5,620 Total liabilities 128,736 145,455 21,088 Net assets 1,205,591 546,122 79,180 SHAREHOLDERS’ /EQUITY Share capital 61 61 9 Share premium 6,711,234 6,734,905 976,469 Other reserves (69,091) 56,172 8,144 Accumulated losses (5,436,613) (6,245,016) (905,442) Total shareholders’ equity 1,205,591 546,122 79,180 35. Restricted net assets and parent company only condensed financial information (Continued) (b) Statements of loss Year ended December 31, 2020 2021 2022 2022 RMB’000 RMB’000 RMB’000 US$’000 Note 2.5(d) Administrative expenses (19,480) (51,124) (48,689) (7,059) Other income and gains/(losses) - net 833 385 (13,329) (1,933) Finance (costs)/income – net (1,230) (479) 1,045 152 Fair value loss of financial instruments with preferred rights (2,823,370) — — — Equity method on loss of subsidiaries (225,796) (445,020) (747,430) (108,367) Loss before income tax (3,069,043) (496,238) (808,403) (117,207) Income tax expense — — — — Loss for the year (3,069,043) (496,238) (808,403) (117,207) 35. Restricted net assets and parent company only condensed financial information (Continued) (c) Statements of cash flows Year ended December 31, 2020 2021 2022 2022 RMB’000 RMB’000 RMB’000 US$’000 Note 2.5(d) Cash flows from operating activities Cash used in operations (36,241) (35,706) (36,359) (5,272) Net cash used in operating activities (36,241) (35,706) (36,359) (5,272) Cash flows from investing activities Investment in subsidiaries (1,006,010) (886,610) (24,302) (3,523) Purchase of wealth management products (21,858) (274,955) — — Redemption of wealth management products — 199,096 — — Investment income from wealth management products — 1,467 — — Purchase of equity security (13,721) — — — Purchase of other investments — (25,894) — — Purchase of derivative financial instruments (68,078) (350,744) — — Settlement of derivative financial instruments 69,628 359,165 — — Others (294) (66) (7,106) (1,030) Net cash used in investing activities (1,040,333) (978,541) (31,408) (4,553) Cash flows from financing activities Proceeds from issuance of ordinary shares 1,676,816 — — — Proceeds from ADS depository 23,069 — — — Proceeds from issuance of financial instruments with preferred rights 70,026 — — — Repurchase of ordinary shares (4,102) — — — Proceeds from investors to the Company 299,051 48,617 — — Proceeds from exercise of awards — 2,169 843 123 Proceeds from loans from Group companies — 75,457 25,000 3,624 Payments in relation to listing expenses (21,691) — — — Net cash generated from financing activities 2,043,169 126,243 25,843 3,747 Net increase/(decrease) in cash and cash equivalents 966,595 (888,004) (41,924) (6,078) Cash and cash equivalents at beginning of year 122,104 941,541 44,691 6,480 Exchange differences on cash and cash equivalents (147,158) (8,846) 1,444 209 Cash and cash equivalents at end of year 941,541 44,691 4,211 611 (d) The Company did not have any significant guarantees, capital or other commitments as of December 31, 2021 and 2022. The VIEs and subsidiaries of VIEs did not pay any dividends to the Company for the reported periods. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of significant accounting policies | |
Basis of preparation | 2.1 Basis 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 RMB 268,376,000 517,848,000 702,006,000 300,897,000 524,144,000 460,197,000 1,210,052,000 548,356,000 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 | 2.2 New 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. 2.3 New 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 | 2.4.1 Consolidation 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) 2.4 Principles of consolidation and equity accounting (Continued) 2.4.1 Consolidation (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$’000 Note 2.5(d) Non-current assets 189,393 198,809 28,825 Current assets 556,527 507,893 73,638 Total assets 745,920 706,702 102,463 Non-current liabilities 1,402,408 1,650,200 239,257 Current liabilities 267,888 512,288 74,275 Total liabilities 1,670,296 2,162,488 313,532 Year ended December 31, 2020 2021 2022 2022 RMB’000 RMB’000 RMB’000 US$’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 The above includes intercompany balances and transactions which have been eliminated on the Company’s consolidated financial statements. As of December 31, 2021 and 2022, the total assets of the Group’s VIEs and subsidiaries of VIEs mainly include cash and cash equivalents, financial assets at fair value through profit or loss, trade receivables, other receivables and prepayments, inventories, property, plant and equipment as well as right-of-use assets; and the total liabilities of the Group’s VIEs and subsidiaries of VIEs mainly include trade payables, amounts due to Group companies, other payables and accruals, borrowings as well as lease liabilities. Amounts due to Group companies are RMB1,449,810,000 and RMB1,834,631,000 as of December 31, 2021 and 2022 respectively. The PRC Subsidiaries did not charge any service fees from the VIEs and subsidiaries of VIEs during the reported periods. During 2020, 2021 and 2022, loans advanced from Group companies to the VIEs totalled RMB499,424,000, RMB928,600,000 and RMB394,740,000 and repayments of such loans totalled nil, RMB282,480,000 and RMB141,507,000, respectively. 2. Summary of significant accounting policies (Continued) 2.4 Principles of consolidation and equity accounting (Continued) 2.4.1 Consolidation (Continued) (c) Business combination The Group applies the acquisition method to account for business combinations except for business combinations under common control. For acquisition method, the consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognizes any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognized amounts of acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired is recorded as goodwill. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain purchase, the difference is recognized directly in profit or loss. There is no business combination during the reported periods. 2.4.2 Associates, joint arrangements and equity method (a) Associates Associates are all entities over which the Group has significant influence but not control or joint control. This is generally the case where the Group holds between 20% and 50% of the voting rights. The Group’s investments in associates in the form of redeemable instruments are financial assets designated at fair value through profit or loss. Investments in associates in the form of ordinary shares with significant influence are accounted for using the equity method of accounting (Note 2.4.2(c)), after initially being recognized at cost. 2. Summary of significant accounting policies (Continued) 2.4.2 Associates, joint arrangements and equity method (Continued) (b) Joint arrangements Investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. The Group recognizes its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These are incorporated in the financial information under the appropriate headings. Interests in joint ventures are accounted for using the equity method (Note 2.4.2(c)), after initially being recognized at cost. The Group has no joint arrangements during the reported periods. 2. Summary of significant accounting policies (Continued) 2.4 Principles of consolidation and equity accounting (Continued) 2.4.2 Associates, joint arrangements and equity method (Continued) (c) Equity method Under the equity method of accounting, the investments are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other comprehensive income. Dividends received or receivable from associates and joint ventures are recognized as a reduction in the carrying amount of the investment. Where the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, including any other unsecured long-term receivables, the Group does not recognize further losses, unless it has incurred obligations or made payments on behalf of the entity. Unrealized gains on transactions between the Group and its associates and joint ventures are eliminated to the extent of the Group’s interest in these entities. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of equity-accounted investees have been changed where necessary to ensure consistency with the policies adopted by the Group. The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described in Note 2.8. 2.4.3 Parent company only financial information Interests in subsidiaries in parent company only financial information are accounted for using the equity method (Note 2.4.2(c)), after initially being recognized at cost. Parent company only condensed financial information is disclosed in Note 35. |
Foreign currency translation | 2.5 Foreign currency translation (a) Functional and presentation currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The financial statements are presented in Renminbi (“RMB”), which is the functional currency of most entities within the Group, unless otherwise stated. (b) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates, are generally recognized in profit or loss. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statements of loss within finance income/(costs). All other foreign exchange gains and losses are presented in the statements of loss within other income and gains/(losses). (c) Group companies The results and financial position of all the Group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: - assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet; - income and expenses for each statement of comprehensive income/(loss) are translated at average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and - all resulting currency translation differences are recognized in other comprehensive income/(loss). (d) Convenience translation Translations of the consolidated balance sheets, the consolidated statements of loss, comprehensive loss and cash flows from RMB into United States dollars (“US$”) as of and for the year ended December 31, 2022 are solely for the convenience of the readers and calculated at the rate of US$1.00=RMB6.8972 representing the exchange rate as of December 30, 2022 set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate, or at any other rate, on December 30, 2022. |
Property, plant and equipment | 2.6 Property, plant and equipment Property, plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred. Depreciation is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives or, in the case of leasehold improvements and certain leased plant and equipment, the shorter lease term as follows: 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 The assets’ residual values and useful lives are reviewed and adjusted if appropriate at the end of each reporting period. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (Note 2.8). Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognized within other income and gains/(losses) in the statements of loss. |
Intangible assets | 2.7 Intangible assets (a) Software Acquired software licenses are capitalized on the basis of the costs incurred to acquire and bring the specific software into usage. These costs are amortized using the straight-line method over their estimated useful lives of about 5-10 years. Costs associated with maintaining software programs are recognized as expense as incurred. (b) Patented technologies Separately acquired patent technologies are shown at historical cost. Patent technologies acquired in a business combination are recognized at fair value at the acquisition date. They have finite useful lives based on the terms of patents and are subsequently carried at cost less accumulated amortization and impairment losses. (c) Other intangible assets Other intangible assets were recognized upon a historical acquisition of a subsidiary. It is amortized using the straight-line method over the estimated useful life of the intangible assets of 4 years. 2. Summary of significant accounting policies (Continued) 2.7 Intangible assets (Continued) (d) Research and development The Group incurs costs and efforts on research and development activities. Research expenditures are charged to the profit or loss as an expense in the period the expenditure is incurred. Development costs are recognized as assets if they can be directly attributable to a newly developed service or product and all the following can be demonstrated: - the technical feasibility to complete the development project so that it will be available for use or sale; - the intention to complete the development project to use or sell the service or product; - the ability to use or sell the service or product; - the manner in which the development project will generate probable future economic benefits for the Group; - the availability of adequate technical, financial and other resources to complete the development project and use or sell the service or product; and - the expenditure attributable to the asset during its development can be reliably measured. The development cost of an internally generated intangible asset is the sum of the expenditure incurred from the date the asset meets the recognition criteria above to the date when it is available for use. The development costs capitalized in connection with the intangible asset include costs of materials and services used or consumed, employee costs incurred in the creation of the asset and an appropriate portion of relevant overheads. Capitalized development costs are amortized using the straight-line method over the life of the related service or product. Amortization shall begin when the asset is available for use. Development expenditures not satisfying the above criteria are recognized in the profit or loss as incurred. |
Impairment of non-financial assets | 2.8 Impairment of non-financial assets Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. No goodwill or intangible assets with an indefinite useful life were recognized during the reported periods. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. |
Financial assets | 2.9 Financial assets (a) Classification The Group classifies its financial assets in the following measurement categories: - those to be measured subsequently at fair value (either through other comprehensive income (“OCI”) or through profit or loss), and - those to be measured at amortized cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or OCI. For investments in equity instruments that are not held for trading, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through OCI (“FVOCI”). The Group reclassifies debt investments when and only when its business model for managing those assets changes. (b) Recognition and derecognition Regular way purchases and sales of financial assets are recognized on trade date, being the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. (c) Measurement At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (“FVPL”), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss. Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely payment of principal and interest. (i) Debt instruments Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the Group classifies its debt instruments: - Amortized cost: Assets that are held for collection of contractual cash flows, where those cash flows represent solely payments of principal and interest, are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in other income and gains/(losses). Impairment losses are presented as separate line item in the statements of loss. 2. Summary of significant accounting policies (Continued) 2.9 Financial assets (Continued) (c) Measurement (Continued) (i) Debt instruments (Continued) - FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognized in profit or loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to profit or loss and recognized in other income and gains/(losses). Interest income from these financial assets is included in finance income using the effective interest rate method. Impairment losses are presented as separate line item in the statements of loss. - FVPL: Assets that do not meet the criteria for amortized cost or FVOCI are measured at FVPL. A gain or loss on a debt investment that is subsequently measured at FVPL is recognized in profit or loss and presented within other income and gains/(losses) in the period in which it arises. (ii) Equity instruments The Group subsequently measures all equity investments at fair value. Where the Group’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognized in profit or loss as other income and gains when the Group’s right to receive payments is established. Changes in the fair value of financial assets at FVPL are recognized in other income and gains/(losses) in the statements of loss as applicable. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. (d) Impairment The Group assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortized cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables and contract assets with no significant financing component, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables. Impairment on other receivables, amounts due from related parties and cash and cash equivalents is measured as either 12-month expected credit losses or lifetime expected credit losses, depending on whether there has been a significant increase in credit risk since initial recognition. If a significant increase in credit risk of a receivable has occurred since initial recognition, then impairment is measured as lifetime expected credit losses. |
Derivatives | 2.10 Derivatives Derivatives are initially recognized at fair value on the date a derivative contract is entered into, and they are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument and, if so, the nature of the item being hedged. Trading derivatives are classified as a current asset or liability. The Group’s derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognized immediately in profit or loss and are included in other income and gains/(losses). |
Inventories | 2.11 Inventories Raw materials, work in progress and finished goods are stated at the lower of cost and net realizable value. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads (based on normal operating capacity). Costs of purchased inventories are determined after deducting rebates and discounts. Cost is determined using the weighted average method. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. |
Trade and other receivables | 2.12 Trade and other receivables Trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business. If collection of trade and other receivables is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets. Trade and other receivables are recognized initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognized at fair value. The Group holds the trade and other receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortized cost using the effective interest method. See Note 3.1(b) for a description of the Group’s impairment policies. |
Cash and cash equivalents | 2.13 Cash and cash equivalents For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheets. |
Share capital | 2.14 Share capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or awards are shown in equity as a deduction, net of tax, from the proceeds. |
Trade and other payables | 2.15 Trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method. Trade payables are unsecured with usual payment terms of 30 days. |
Borrowings | 2.16 Borrowings Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Borrowings are removed from the balance sheets when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss as finance costs. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. |
Borrowing costs | 2.17 Borrowing costs General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Other borrowing costs are expensed in the period in which they are incurred. |
Financial instruments with preferred rights | 2.18 Financial instruments with preferred rights Financial instruments with preferred rights issued by the Group are convertible into ordinary shares upon the closing of a qualified IPO or at the option of the holders and redeemable upon occurrence of certain future events. The Group designates the financial instruments with preferred rights as financial liabilities at fair value through profit or loss. They are initially recognized at fair value. Any directly attributable transaction costs are expensed in the consolidated statements of loss. Subsequent to initial recognition, the amount of change in the fair value of the financial instruments with preferred rights that is attributable to changes in the credit risk of that liability shall be presented in OCI with the remaining changes in fair value recognized in profit or loss. All financial instruments with preferred rights were converted into ordinary shares upon completion of IPO on June 19, 2020. |
Current and deferred income tax | 2.19 Current and deferred income tax The income tax expense or credit for the period is the tax payable on the current period’s taxable income, based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Current and deferred tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. (a) Current income tax The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. (b) Deferred income tax Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. However, deferred tax liabilities are not recognized if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred tax assets are recognized only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses. Deferred tax liabilities and assets are not recognized for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and where the deferred tax balances relate to the same taxation authority. |
Employee benefits | 2.20 Employee benefits (a) Short-term obligations Liabilities for wages and salaries, including non-monetary benefits and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheets. (b) Pension obligations The Group incorporated in the PRC contributes based on certain percentage of the salaries of the employees to a defined contribution retirement benefit plan organized by relevant government authorities in the PRC on a monthly basis. The government authorities undertake to assume the retirement benefit obligations payable to all existing and further retired employees under these plans and the Group has no further obligation for post-retirement benefits beyond the contributions made. Contributions to these plans are expensed as incurred. Assets of the plans are held and managed by government authorities and are separate from those of the Group. (c) Housing funds and medical insurance The PRC employees of the Group are entitled to participate in various government-supervised housing funds and medical insurance. The Group contributes on a monthly basis to these funds based on certain percentage of the salaries of the employees, subject to certain ceiling. The Group’s liability in respect of these funds is limited to the contribution payable in each period and recognized as employee benefit expense when they are due. |
Share-based payment | 2.21 Share-based payment Share-based compensation benefits (including restricted ordinary shares, share options and restricted share units (“RSU”), collectively the “awards”) are provided to employees and consultants via the share incentive plans with information being set out in Note 27(a). The fair value of awards granted is recognized as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the awards granted: - including any market performance conditions (e.g. the entity’s share price) - excluding the impact of any service and non-market performance vesting conditions (e.g. profitability, sales growth targets and remaining an employee of the entity over a specified time period), and - including the impact of any non-vesting conditions (e.g. the requirement for employees to save or hold shares for a specific period of time). The total expense is recognized over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the Group revises its estimates of the vesting period and the number of awards that are expected to vest based on the service and non- market performance vesting conditions. It recognizes the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to equity. The Group applies prospective treatment in respect of accounting for modifications of equity-settled awards that reduce the vesting period, if any. |
Revenue recognition | 2.22 Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Revenues are recognized when, or as, the control of the goods or services is transferred to the customer. Depending on the terms of the contract and the laws applicable, control of the goods and services may be transferred over time or at a point in time. Control of the goods and services is transferred over time if the Group’s performance: - provides all of the benefits received and consumed simultaneously by the customer; - creates and enhances an asset that the customer controls as the Group performs; or - does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date (collectively referred as “Over Time Conditions”). If control of the goods and services transfers over time, revenue is recognized over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognized at a point in time when the customer obtains control of the goods and services. The progress towards complete satisfaction of performance obligation, depending on the nature of the goods and services to be transferred, is measured based on one of the following methods that best depicts the Group’s performance in satisfying the performance obligation: - direct measurements of the value of individual services transferred by the Group to the customer; or - the Group’s efforts or inputs to the satisfaction of the performance obligation. When determining the transaction price to be allocated to different performance obligations, the Group first determines the fees that the Group entitles in the contract period. The Group includes in the transaction price some or all of an amount of variable considerations only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. If contracts involve the sale of multiple goods, goods followed by related services, or multiple services, the transaction price will be allocated to each performance obligation based on their relative stand-alone selling prices. If the stand-alone selling prices are not directly observable, they are estimated based on expected cost plus a margin or adjusted market assessment approach, depending on the availability of observable information. The Group has two main revenue streams which are (a) diagnosis and monitoring; and (b) development services. 2. Summary of significant accounting policies (Continued) 2.22 Revenue recognition (Continued) (a) Diagnosis and monitoring Diagnosis and monitoring as well as early screening (collectively “precision oncology testing”) refer to those performed in the form of laboratory developed tests (“LDT”) services and in-vitro diagnostic (“IVD”) products. The service period of each testing is generally around 1 to 2 weeks. Customers of the Group include individuals and enterprises, distributors and hospitals. Revenue is recognized when the performance obligations are satisfied. The testing is designed for each individual. The Group recognizes revenue over time when it has an enforceable right to payment for performance completed to date. The progress of precision oncology recognized over time is measured based on the Group’s input to the satisfaction of related performance obligation. Revenue from the testing is recognized at a point in time when the Over Time Conditions are not met. For those arrangements, the Group recognizes revenue when the report is delivered. Revenue from sales of IVD products is recognized when control of IVD products is transferred upon that hospitals and institutional customers have received and accepted the products. (b) Development services Revenue from development services refers to the research services and sequencing services. Research services are recognized over time when it has an enforceable right to payment for performance completed to date. The progress of research services is measured based on the Group’s inputs or outputs to the satisfaction of related performance obligation of research services. Sequencing services are recognized at a point in time when the Over Time Conditions are not met. For those arrangements, the Group recognizes revenue when the report is delivered. (c) Principal-agent consideration The Group performs the underlying precision oncology testing and development services. When another party is involved in providing the service to an end customer, the Group will determine whether the other party is the principal or the agent to the end customer. The Group reports the revenue on a gross or net basis depending on whether the other party is acting as a principal or an agent to the end customer in a transaction. This determination is based on an evaluation of various factors including but not limited to whether the other party (i) is the primary obligor in the arrangement; (ii) has latitude in establishing the selling price; and (iii) has inventory risk before the specified good or service is transferred to a customer or after transfer of control to the customer. When the other party is acting as a principal to the end customer, the Group considers the other party as its customer and records the net amount from the other party as revenue. When the other party is acting as an agent, the Group considers the end customer as its customer and records the gross amount from the end customer as revenue. 2. Summary of significant accounting policies (Continued) 2.22 Revenue recognition (Continued) (d) Financing components The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeding one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money. (e) Contract assets and liabilities When either party to a contract has performed, the Group presents the contracts in balance sheets as a contract asset or a contract liability, depending on the relationship between the Group’s performance and customers’ payment. A contract asset is the Group’s right to consideration in exchange for goods or services which the Group has transferred to customers. Contract asset is subject to the impairment of expected credit losses model under IFRS 9. Incremental costs incurred to obtain a contract, if recoverable, are capitalized and presented as contract assets and subsequently amortized when the related revenue is recognized. For those costs with amortization periods of less than 1 year, they are expensed as incurred. If a customer pays consideration or the Group has a right to an amount of consideration that is unconditional, before the Group transfers a good or service to the customer, the Group presents the contract as a contract liability when the payment is made or the receivable is recorded (whichever is earlier). A contract liability is the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. A receivable is recorded when the Group has an unconditional right to consideration. A right to consideration is unconditional if only the passage of time is required before payment of that consideration is due. |
Cost of revenue | 2.23 Cost of revenue Cost of revenue is principally related to costs of services. Costs of services primarily consist of costs of raw materials consumed during the process of revenue-generating services, salaries and benefits for production personnel (including related share-based compensations), rental and depreciation expenses as well as maintenance of equipment, and other related costs of operations. |
Selling expenses | 2.24 Selling expenses Selling expenses primarily include promotion and marketing expenses as well as employee benefits related to sales personnel including share-based compensations. |
Administrative expenses | 2.25 Administrative expenses Administrative expenses primarily include payroll and related expenses for employees involved in general corporate functions including finance, legal and human resources, rental and depreciation expenses related to facilities and equipment used by these functions, professional service expenses and other general corporate related expenses. |
Research and development expenses | 2.26 Research and development expenses As stated in Note 2.7(d), all expenditure related to research and development is recorded in expenses when it could not meet the criteria of capitalization. |
Interest income | 2.27 Interest income Interest income is recognized using the effective interest method. |
Government grants | 2.28 Government grants Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Where the grants relates to an expense item, it is recognized as income on a systematic basis over the period that the costs, which it is intended to compensate, are expensed. Where the grants relates to an asset, the fair value is credited to a deferred income account and is released to profit or loss over the expected useful life of the relevant asset on straight-line basis or deducted from the carrying amount of the asset and released to the profit or loss by way of a reduced depreciation charge. |
Leases | 2.29 Leases The Group leases various properties and office equipment. Rental contracts are typically made for fixed periods of approximately 2 to 7 years but may have extension options as described below. Leases are recognized as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group. Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices. However, for leases of real estate for which the Group is a lessee, it has elected not to separate lease and non- lease components and instead accounts for these as a single lease component. Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments: ● fixed payments (including in-substance fixed payments), less any lease incentives receivable, ● variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the commencement date, ● amounts expected to be payable by the Group under residual value guarantees, ● the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and ● payments of penalties for terminating the lease, if the lease term reflects the Group exercising that termination option. Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability. 2. Summary of significant accounting policies (Continued) 2.29 Leases (Continued) The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions. Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Right-of-use assets are measured at cost comprising the following: ● the amount of the initial measurement of lease liability, ● any lease payments made at or before the commencement date less any lease incentives received, ● any initial direct costs, and ● restoration costs. Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful life. Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. In the statement of cash flows, cash flows related to leases are classified as the followings: ● cash payments for the principal and interest elements of the lease liabilities are classified within financing activities; ● short-term lease payments, payments for leases of low-value assets and variable lease payments not included in the measurement of the lease liabilities are classified within operating activities. |
Segment reporting | 2.30 Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (“CODM”). The CODM has been identified as the Chief Executive Officer (“CEO”) of the Company who makes strategic decisions, monitors daily operation of the Group, allocates resources and assesses performance of the operating segments. |
Loss per share | 2.31 Loss per share (a) Basic loss per share Basic loss per share is calculated by dividing: ● the loss attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares ● by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year and excluding treasury shares (b) Diluted loss per share Diluted loss per share adjusts the figures used in the determination of basic loss per share to take into account: ● the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and ● the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. |
General information and group_2
General information and group structure (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
General information and group structure | |
Schedule of consolidated principal subsidiaries, VIEs and subsidiaries of VIEs | Effective Company name Place and date of incorporation Registered/issued capital interest held Principal activities Subsidiaries directly held : Genetron HK Hong Kong, June 6, 2018 HK$10,000 (10,000 ordinary shares) 100 % Investment holding Genetron Health, Inc. Delaware, United States of America August 23, 2019 US$ 1 (1,000 ordinary shares) 100 % Molecular diagnostic services Genetron (Tianjin) Co., Ltd. * Tianjin, PRC March 8, 2019 RMB1,000,000,000 100 % Biotechnology development and technical services Shanghai Junran Bio-Technology Co., Ltd. Shanghai, PRC July 1, 2019 RMB500,000,000 100 % Biotechnology development and technical services Genetron (Wuxi) Business Management Co., Ltd. ** Wuxi, PRC December 3, 2020 US$50,000,000 90 % Investment holding Genetron (Hainan) Biotech Co., Ltd. Haikou, PRC January 18, 2022 RMB300,000,000 100 % Biotechnology development and technical services VIEs: Genetron Health Beijing, PRC May 7, 2015 RMB57,438,800 100 % Gene-related detection services Genetron (Wuxi) Biotech Co., Ltd. Wuxi, PRC October 14, 2020 RMB20,000,000 100 % Gene-related detection services Subsidiaries of VIEs: Shanghai Genetron Bio-Technology Co., Ltd. Shanghai, PRC July 8, 2015 RMB20,000,000 100 % Investment holding Genetron Health (Chongqing) Co., Ltd. Chongqing, PRC March 1, 2016 RMB20,000,000 100 % Investment holding and IVD products sales Beijing Genetron Biotechnology Co., Ltd. Beijing, PRC March 11, 2016 RMB20,000,000 100 % Investment holding Guangzhou Genetron Bio-Technology Co., Ltd. Guangzhou, PRC July 4, 2019 RMB10,000,000 100 % Investment holding Beijing Genetron Medical Laboratory Co., Ltd. Beijing, PRC November 5, 2015 RMB12,000,000 100 % Gene-related detection services Shanghai Genetron Medical Laboratory Co., Ltd. Shanghai, PRC December 14, 2015 RMB30,000,000 100 % Gene-related detection services Chongqing Genetron Medical Laboratory Co., Ltd. Chongqing, PRC August 11, 2016 RMB20,000,000 100 % Gene-related detection services Guangzhou Genetron Medical Laboratory Co., Ltd. Guangzhou, PRC July 8, 2019 RMB10,000,000 100 % Gene-related detection services Genetron Health Technologies, Inc. Delaware, United States of America April 28, 2015 US$ 10,000,000 (1,000 ordinary shares) 100 % Research services |
Summary of significant accoun_3
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 risk management (Tabl
Financial risk management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial risk management | |
Summary of trade receivables and contract assets | Between Between Between Within 6 months 1 to 2 2 to 3 After 3 As of December 31, 2021 6 months to 1 year years years years Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 IVD product customers Expected loss rate 9 % 19 % 34 % 81 % 100 % Trade receivables and contract assets, gross 135,288 29,937 34,985 2,310 — 202,520 Loss allowance 11,984 5,628 11,896 1,880 — 31,388 Hospital customers Expected loss rate 13 % 14 % 29 % 55 % 100 % Trade receivables and contract assets, gross 19,872 9,784 17,046 13,521 612 60,835 Loss allowance 2,504 1,356 4,995 7,376 612 16,843 Other customers Expected loss rate 3 % 12 % 26 % 54 % 100 % Trade receivables and contract assets, gross 67,076 6,388 4,344 1,587 548 79,943 Loss allowance 1,859 765 1,144 863 548 5,179 Between Between Between Within 6 months 1 to 2 2 to 3 After 3 As of December 31, 2022 6 months to 1 year years years years Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 IVD product customers Expected loss rate 15 % 38 % 59 % 100 % 100 % Trade receivables and contract assets, gross 52,231 61,648 41,241 16,710 2,310 174,140 Loss allowance 7,990 23,403 24,191 16,710 2,310 74,604 Hospital customers Expected loss rate 12 % 14 % 26 % 41 % 66 % Trade receivables and contract assets, gross 12,628 14,550 17,295 16,851 8,871 70,195 Loss allowance 1,538 1,980 4,571 6,980 5,816 20,885 Other customers Expected loss rate 3 % 12 % 46 % 78 % 100 % Trade receivables and contract assets, gross 83,090 29,691 4,439 1,085 1,238 119,543 Loss allowance 2,798 3,653 2,035 845 1,238 10,569 |
Summary of financial liabilities | Between Between Less than 1 and 2 2 and 5 Over 5 1 year years years years Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As of December 31, 2021 Borrowings 20,206 — — — 20,206 Lease liabilities 22,811 19,850 16,351 1,682 60,694 Trade payables 55,767 — — — 55,767 Other payables 92,488 — — — 92,488 Amounts due to related parties 3 — — — 3 Other non-current liabilities — — 13,961 — 13,961 Total 191,275 19,850 30,312 1,682 243,119 As of December 31, 2022 Borrowings 113,066 7,206 — — 120,272 Lease liabilities 23,145 12,359 10,141 — 45,645 Trade payables 63,048 — — — 63,048 Other payables 116,160 — — — 116,160 Other non-current liabilities — — 15,090 — 15,090 Total 315,419 19,565 25,231 — 360,215 |
Summary of asset or liability that are not based on observable | Level 1 Level 2 Level 3 Total Notes RMB’000 RMB’000 RMB’000 RMB’000 As of December 31, 2021 Assets Financial assets at fair value through profit or loss - other investments 21(i) — — 49,780 49,780 - wealth management products 21(ii) — — 144,361 144,361 - equity security 21(iii) 7,082 — — 7,082 Derivative financial instruments - foreign currency forwards 22 — 2,002 — 2,002 Total 7,082 2,002 194,141 203,225 As of December 31, 2022 Assets Financial assets at fair value through profit or loss - other investments 21(i) — — 50,496 50,496 - wealth management products 21(ii) — — 151,509 151,509 - equity security 21(iii) 5,917 — — 5,917 Total 5,917 — 202,005 207,922 |
Summary of movements in level 3 instruments | Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Wealth management products Opening balance 122,224 130,002 144,361 Additions 1,628,558 1,650,355 1,180,045 Gain/(loss) recognized in other income and gains/(losses) – net (Note 9) 4,652 (5,867) (12,363) Redemptions (1,625,106) (1,628,463) (1,169,346) Exchange differences (326) (1,666) 8,812 Closing balance 130,002 144,361 151,509 Other investments Opening balance — 19,609 49,780 Additions 19,000 28,895 — Fair value change recognized in profit or loss (Note 9) 609 1,668 (1,640) Exchange differences — (392) 2,356 Closing balance 19,609 49,780 50,496 |
Revenue and segment informati_2
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 |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Expenses by nature | |
Summary of expenses by nature | Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Cost of inventories and consumables used (Note 17) 148,988 209,833 231,780 Employee benefit expenses (Note 8) 268,986 414,604 487,788 Depreciation on property, plant and equipment (Note 13) 33,466 36,865 50,693 Depreciation on right-of-use assets (Note 14) 18,277 23,821 22,125 Amortization on intangible assets (Note 15) 1,452 2,399 4,606 Loss allowance for trade and other receivables and contract assets 14,843 37,032 59,010 Promotion expenses 131,209 167,298 185,597 Rental, utilities and office expenses 16,347 27,472 25,130 Professional service fees 36,135 88,829 89,817 |
Employee benefit expenses (Tabl
Employee benefit expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Employee benefit expenses. | |
Summary of employee benefit expenses | Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Wages, salaries and bonuses 195,462 279,443 361,797 Welfare expenses 8,637 10,711 23,167 Housing funds 14,799 21,299 26,610 Contributions to pension plans (Note) 20,137 49,007 58,721 Share-based compensation expenses (Note 27(d)) 29,951 54,144 17,493 268,986 414,604 487,788 |
Summary of employee benefit expenses were charged in categories in the consolidated statements of loss | Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Cost of revenue 27,108 35,589 57,795 Selling expenses 101,379 142,699 148,963 Administrative expenses 64,610 101,957 121,185 Research and development expenses 75,889 134,359 159,845 268,986 414,604 487,788 |
Other income and gains - net (T
Other income and gains - net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other income and gains - net | |
Summary of other income and gains/(losses) - net | Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Investment income from wealth management products 4,182 4,925 3,366 Dividends from equity security — 745 422 Fair value gain/(loss) on - wealth management products 470 (10,792) (15,729) - equity security (3,153) (3,011) (1,733) - other investments 609 1,668 (1,640) - derivative financial instruments 196 2,002 — Gain/(loss) on - settlement of derivative financial instruments 1,550 8,709 — - disposal of property, plant and equipment — — (302) - disposal of right-of-use assets — (846) (182) - disposal of subsidiaries — 2,305 — Government grants (Note) 3,869 3,991 8,710 Amortization on deferred income from ADS depository (Note 29) 2,405 4,373 3,756 Donations (2,327) (9,866) (678) Others 725 1,126 1,344 8,526 5,329 (2,666) Note: Government grants are subsidies received for compensating the Group’s research and development expenses incurred for certain projects and other operating activities. |
Finance income_(costs) - net (T
Finance income/(costs) - net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Finance income/(costs) - net | |
Summery of finance income/(costs) - net | Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Finance income Interests from - bank deposits 433 1,189 1,947 - others — 204 914 Net exchange gains 27,897 19,108 — 28,330 20,501 2,861 Finance costs Interests on - lease liabilities (2,069) (2,999) (2,459) - borrowings (3,298) (1,311) (3,914) - redemption liabilities (Note 31) — (941) (1,148) Net exchange losses — — (103,964) Others (260) — — (5,627) (5,251) (111,485) Finance income/(costs) – net 22,703 15,250 (108,624) |
Income tax expense (Tables)
Income tax expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income tax expense | |
Summary of reconciliation between the group's actual tax charge and statutory income tax rate | The reconciliation between the Group’s actual tax charge and the amount that is calculated based on the statutory income tax rate of 25% in the PRC is as follows: Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Loss before income tax (3,069,043) (502,598) (810,630) Tax credits calculated at statutory tax rate of 25% (767,261) (125,650) (202,658) Effects of preferential tax rates and different tax rates in other jurisdictions (Note (i)) 18,900 51,843 76,018 Expenses not deductible for income tax purpose (Note (ii)) 722,458 29,102 36,891 Super deduction of research and development expenses (8,390) (11,416) (11,056) Tax losses and deductible temporary differences for which no deferred income tax assets were recognized 34,293 56,121 100,805 Income tax expense — — — Note: (i) Certain Group companies in PRC have been eligible as High/New Technology Enterprises with preferential tax rate of 15% as set out in PRC EIT Law. (ii) These mainly include fair value loss of financial instruments with preferred rights during 2020. |
Loss per share (Tables)
Loss per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loss per share | |
Summary of basic and diluted loss per share reflecting the effect of the issuance of ordinary shares by the company | Year ended December 31, 2020 2021 2022 Loss attributable to owners of the Company (RMB’000) (3,069,043) (496,238) (808,403) Weighted average number of ordinary shares outstanding (in thousands) (Note) 301,380 460,547 463,976 Basic loss per share (RMB) (10.18) (1.08) (1.74) Basic loss per ADS (RMB) (50.92) (5.39) (8.71) |
Summary of movement of number of ordinary shares outstanding (excluding treasury shares) | Movement of number of ordinary shares outstanding (excluding treasury shares) for the reported periods are shown as follows. Year ended December 31, 2020 2021 2022 in thousands in thousands in thousands At beginning of the year 123,584 456,707 462,869 Ordinary shares — issued upon IPO 80,000 — — — converted from preferred shares upon IPO 220,332 — — Restricted shares vested* 17,894 — — Awards vested** 14,897 6,162 1,928 At end of the year 456,707 462,869 464,797 * considered in the calculation when they vested on monthly basis ** represent awards with nominal subscription prices which have been vested but not yet exercised at end of the year |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment | |
Summary of property plant and equipment | Office Instruments equipment and and Transporting Leasehold equipment furniture equipment improvements Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 As of January 1, 2020 Cost 147,658 3,953 469 21,081 173,161 Accumulated depreciation (73,095) (1,754) (166) (15,133) (90,148) Net book value 74,563 2,199 303 5,948 83,013 Year ended December 31, 2020 Opening net book value 74,563 2,199 303 5,948 83,013 Additions 19,573 908 — 6,896 27,377 Depreciation (28,038) (784) (112) (4,532) (33,466) Exchange differences (33) — — — (33) Closing net book value 66,065 2,323 191 8,312 76,891 As of December 31, 2020 Cost 167,085 4,861 469 27,977 200,392 Accumulated depreciation (101,020) (2,538) (278) (19,665) (123,501) Net book value 66,065 2,323 191 8,312 76,891 Year ended December 31, 2021 Opening net book value 66,065 2,323 191 8,312 76,891 Additions 58,169 1,683 — 10,827 70,679 Disposals (313) (54) — (35) (402) Depreciation (29,729) (910) (112) (6,114) (36,865) Exchange differences (17) (1) — — (18) Closing net book value 94,175 3,041 79 12,990 110,285 As of December 31, 2021 Cost 222,203 5,971 469 36,652 265,295 Accumulated depreciation (128,028) (2,930) (390) (23,662) (155,010) Net book value 94,175 3,041 79 12,990 110,285 Year ended December 31, 2022 Opening net book value 94,175 3,041 79 12,990 110,285 Additions 35,105 258 — 43,703 79,066 Disposals (318) (5) — (217) (540) Depreciation (42,319) (900) (56) (7,418) (50,693) Exchange differences 405 24 — 206 635 Closing net book value 87,048 2,418 23 49,264 138,753 As of December 31, 2022 Cost 256,216 6,152 469 77,144 339,981 Accumulated depreciation (169,168) (3,734) (446) (27,880) (201,228) Net book value 87,048 2,418 23 49,264 138,753 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Summary of right of use assets | Office Properties equipment Total RMB’000 RMB’000 RMB’000 As of January 1, 2020 Cost 57,916 50 57,966 Accumulated depreciation (14,766) (18) (14,784) Net book value 43,150 32 43,182 Year ended December 31, 2020 Opening net book value 43,150 32 43,182 Additions 34,801 — 34,801 Depreciation (18,259) (18) (18,277) Closing net book value 59,692 14 59,706 As of December 31, 2020 Cost 92,717 50 92,767 Accumulated depreciation (33,025) (36) (33,061) Net book value 59,692 14 59,706 Year ended December 31, 2021 Opening net book value 59,692 14 59,706 Additions 17,495 — 17,495 Disposals (719) — (719) Depreciation (23,807) (14) (23,821) Exchange differences (587) — (587) Closing net book value 52,074 — 52,074 As of December 31, 2021 Cost 101,469 — 101,469 Accumulated depreciation (49,395) — (49,395) Net book value 52,074 — 52,074 Year ended December 31, 2022 Opening net book value 52,074 — 52,074 Additions 9,187 — 9,187 Disposals (1,215) — (1,215) Depreciation (22,125) — (22,125) Exchange differences 963 — 963 Closing net book value 38,884 — 38,884 As of December 31, 2022 Cost 97,940 — 97,940 Accumulated depreciation (59,056) — (59,056) Net book value 38,884 — 38,884 |
Summery of lease liabilities | As of December 31, 2021 2022 RMB’000 RMB’000 Non-current 33,865 20,245 Current 20,572 21,490 54,437 41,735 |
Summery of lease expenses explanatory | Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Interest expense (included in finance costs) (Note 10) 2,069 2,999 2,459 Expense relating to short-term leases (included in cost of revenue, selling expenses, administrative expenses and research and development expenses) 530 2,413 3,091 Expense relating to leases of low-value assets that are not shown above as short-term leases (included in cost of revenue, selling expenses, administrative expenses and research and development expenses) 521 214 332 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible assets | |
Summary of intangible assets | Patented Software technology Others Total RMB’000 RMB’000 RMB’000 RMB’000 As of January 1, 2020 Cost 7,679 230 2,030 9,939 Accumulated amortization and impairment (2,197) (230) (2,030) (4,457) Net book value 5,482 — — 5,482 Year ended December 31, 2020 Opening net book value 5,482 — — 5,482 Additions 8,253 — — 8,253 Amortization (1,452) — — (1,452) Exchange differences (18) — — (18) Closing net book value 12,265 — — 12,265 As of December 31, 2020 Cost 15,798 230 2,030 18,058 Accumulated amortization and impairment (3,533) (230) (2,030) (5,793) Net book value 12,265 — — 12,265 Year ended December 31, 2021 Opening net book value 12,265 — — 12,265 Additions 10,849 — — 10,849 Amortization (2,399) — — (2,399) Exchange differences (20) — — (20) Closing net book value 20,695 — — 20,695 As of December 31, 2021 Cost 26,582 230 2,030 28,842 Accumulated amortization and impairment (5,887) (230) (2,030) (8,147) Net book value 20,695 — — 20,695 Year ended December 31, 2022 Opening net book value 20,695 — — 20,695 Additions 16,098 — — 16,098 Disposals (329) — — (329) Amortization (4,606) — — (4,606) Exchange differences 210 — — 210 Closing net book value 32,068 — — 32,068 As of December 31, 2022 Cost 42,717 — — 42,717 Accumulated amortization and impairment (10,649) — — (10,649) Net book value 32,068 — — 32,068 |
Financial instruments by cate_2
Financial instruments by category (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial instruments by category | |
Summary of financial instruments | 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 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Summary of detailed information about inventories explanatory | 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 |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade receivables | |
Summary of detailed information about trade receivables | As of December 31, 2021 2022 RMB’000 RMB’000 Trade receivables, gross 336,136 346,683 Less: loss allowance (54,023) (103,560) 282,113 243,123 |
Other receivables and prepaym_2
Other receivables and prepayments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other receivables and prepayments | |
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 |
Financial assets at fair valu_2
Financial assets at fair value through profit or loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial assets at fair value through profit or loss | |
Financial assets at fair value through profit or loss | As of December 31, 2021 2022 RMB’000 RMB’000 Non-current Other investments (Note (i)) 49,780 50,496 Current Wealth management products (Note (ii)) 144,361 151,509 Equity security (Note (iii)) 7,082 5,917 151,443 157,426 Note: (i) In 2020 the Group invested RMB 19 million in a biotechnology company and thereby obtained 30% of its equity interests with certain preferred rights in redemption, liquidation and anti-dilution. As such this is investment in an associate being designated as financial assets at FVPL. In 2021 the Group further invested RMB29 million in total in other biotechnology companies which are classified as financial assets at FVPL. Above fair values are measured based on discounted cash flow method. (ii) Wealth management products held by the Group with various maturities bear floating interest rates at ranges of 1.40 %— 3.76 % and 1.40% — 3.03% per annum as of December 31, 2021 and 2022 respectively. The underlying investments were mostly debt instruments with low to moderate risk levels. The fair values of wealth management products are based on discounted cash flows using their expected returns. (iii) This is investment of an equity security listed in Hong Kong held for trading with purchase cost of approximately RMB 14 million. Its fair value at end of reporting period is determined by closing price quoted in an active stock market. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents | |
Summary of 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 |
Share capital and share premi_2
Share capital and share premium (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share capital and share premium | |
Summary of share capital authorized | 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 — — |
Summary of share capital issued | 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. |
Share-based payment (Tables)
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)) (Note (iii)) (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 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings | |
Summary of 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 . |
Summary of information about group obtained loan facilities | (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. |
Other payables and accruals (Ta
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 |
Financial instruments with pr_2
Financial instruments with preferred rights (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial instruments with preferred rights | |
Summary of movements of financial instruments with preferred rights | RMB’000 Year ended December 31, 2020 At January 1, 2020 2,106,334 Issuance (Note 24(i)) 70,026 Changes in fair value recognized in profit or loss 2,823,370 Changes in fair value due to own credit risk recognized in OCI 72 Conversion into ordinary shares upon IPO (4,999,811) Others 9 At December 31, 2020, 2021 and 2022 — |
Other non-current liabilities (
Other non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other non-current liabilities | |
Summary of other non-current liabilities | As of December 31, 2021 2022 RMB’000 RMB’000 Redemption liabilities (Note) 8,612 9,760 |
Cash flow information (Tables)
Cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash flow information | |
Summary of reconciliation from loss before income tax to cash used in operations | Year ended December 31, 2020 2021 2022 RMB’000 RMB’000 RMB’000 Loss before income tax (3,069,043) (502,598) (810,630) Adjustments for: Depreciation on - property, plant and equipment 33,466 36,865 50,693 - right-of-use assets 18,277 23,821 22,125 Amortization on intangible assets 1,452 2,399 4,606 Loss allowance for trade and other receivables and contract assets 14,843 37,032 59,010 Investment income from wealth management products (4,182) (4,925) (3,366) Dividends from equity security — (745) (422) Fair value loss - net on financial assets at FVPL 1,878 10,133 19,102 (Gain)/loss on - settlement of derivative financial instruments (1,550) (8,709) — - disposal of property, plant and equipment — — 302 - disposal of right-of-use assets — 846 182 - disposal of subsidiaries — (2,305) — Amortization on deferred income of ADS depository (2,405) (4,373) (3,756) Finance (income)/costs - net (22,270) (14,061) 110,571 Share-based compensation expenses 29,951 54,144 17,493 Losses related to financial instruments with preferred rights 2,823,370 — — Others (110) — — Changes in working capital: - Inventories (7,075) (10,632) (6,824) - Contract assets (50) (7,277) (10,006) - Other current assets 7,211 5,795 21,233 - Trade receivables (95,719) (153,942) (10,568) - Other receivables and prepayments (22,894) (44,386) 24,427 - Amounts due from related parties 850 (383) 487 - Trade payables (9,073) 23,579 13,729 - Contract liabilities (9,772) 3,545 (2,373) - Other payables and accruals 11,948 32,054 43,791 - Amounts due to related parties — (21) (3) Cash used in operations (300,897) (524,144) (460,197) |
Summary of reconciliation of liabilities arising from financing activities | Financial instruments Amounts with preferred due to Lease rights investors Borrowings liabilities (Note 30) (Note) (Note 28) (Note 14(a)(ii)) Total RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 At January 1, 2020 2,106,334 15,000 23,157 44,487 2,188,978 Cash received 70,026 299,051 61,213 — 430,290 Cash repaid — (314,388) (20,703) (19,577) (354,668) Non-cash movements (2,176,360) 337 409 34,691 (2,140,923) At December 31, 2020 — — 64,076 59,601 123,677 At January 1, 2021 — — 64,076 59,601 123,677 Cash received — 48,617 25,153 — 73,770 Cash repaid — (48,452) (69,106) (21,708) (139,266) Non-cash movements — (165) (569) 16,544 15,810 At December 31, 2021 — — 19,554 54,437 73,991 At January 1, 2022 — — 19,554 54,437 73,991 Cash received — — 129,973 — 129,973 Cash repaid — — (32,979) (21,940) (54,919) Non-cash movements — — 284 9,238 9,522 At December 31, 2022 — — 116,832 41,735 158,567 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments | |
Summary of capital commitments | As of December 31, 2021 2022 RMB’000 RMB’000 Equipment and intangible assets - Contracted but not provided for 34,772 162 |
Summary of future minimum lease payables under non-cancellable leases | As of December 31, 2021 2022 RMB’000 RMB’000 No later than 1 year 1,271 853 Later than 1 year but no later than 3 years 38 22 1,309 875 |
Related party transactions (Tab
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) As of December 31, 2021 2022 RMB’000 RMB’000 Edigene (Beijing) Inc. 597 110 (ii) 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 |
Restricted net assets and par_2
Restricted net assets and parent company only condensed financial information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restricted net assets and parent company only condensed financial information | |
Schedule of condensed balance sheets | As of December 31, 2021 2022 2022 RMB’000 RMB’000 US$’000 Note 2.5(d) ASSETS Non-current assets Interests in subsidiaries 1,138,922 558,800 81,018 Financial assets at fair value through profit or loss 25,503 27,859 4,039 Prepayments 19,766 — — Total non-current assets 1,184,191 586,659 85,057 Current assets Other receivables and prepayments 7,170 16,765 2,431 Amounts due from Group companies 6,713 735 106 Financial assets at fair value through profit or loss 91,562 83,207 12,063 Cash and cash equivalents 44,691 4,211 611 Total current assets 150,136 104,918 15,211 Total assets 1,334,327 691,577 100,268 LIABILITIES Non-current liabilities Amounts due to Group companies 75,457 106,688 15,468 Total non-current liabilities 75,457 106,688 15,468 Current liabilities Other payables and accruals 51,837 36,260 5,257 Amounts due to Group companies 1,442 2,507 363 Total current liabilities 53,279 38,767 5,620 Total liabilities 128,736 145,455 21,088 Net assets 1,205,591 546,122 79,180 SHAREHOLDERS’ /EQUITY Share capital 61 61 9 Share premium 6,711,234 6,734,905 976,469 Other reserves (69,091) 56,172 8,144 Accumulated losses (5,436,613) (6,245,016) (905,442) Total shareholders’ equity 1,205,591 546,122 79,180 |
Schedule of condensed income statements | Year ended December 31, 2020 2021 2022 2022 RMB’000 RMB’000 RMB’000 US$’000 Note 2.5(d) Administrative expenses (19,480) (51,124) (48,689) (7,059) Other income and gains/(losses) - net 833 385 (13,329) (1,933) Finance (costs)/income – net (1,230) (479) 1,045 152 Fair value loss of financial instruments with preferred rights (2,823,370) — — — Equity method on loss of subsidiaries (225,796) (445,020) (747,430) (108,367) Loss before income tax (3,069,043) (496,238) (808,403) (117,207) Income tax expense — — — — Loss for the year (3,069,043) (496,238) (808,403) (117,207) |
Schedule of condensed cash flow statements | Year ended December 31, 2020 2021 2022 2022 RMB’000 RMB’000 RMB’000 US$’000 Note 2.5(d) Cash flows from operating activities Cash used in operations (36,241) (35,706) (36,359) (5,272) Net cash used in operating activities (36,241) (35,706) (36,359) (5,272) Cash flows from investing activities Investment in subsidiaries (1,006,010) (886,610) (24,302) (3,523) Purchase of wealth management products (21,858) (274,955) — — Redemption of wealth management products — 199,096 — — Investment income from wealth management products — 1,467 — — Purchase of equity security (13,721) — — — Purchase of other investments — (25,894) — — Purchase of derivative financial instruments (68,078) (350,744) — — Settlement of derivative financial instruments 69,628 359,165 — — Others (294) (66) (7,106) (1,030) Net cash used in investing activities (1,040,333) (978,541) (31,408) (4,553) Cash flows from financing activities Proceeds from issuance of ordinary shares 1,676,816 — — — Proceeds from ADS depository 23,069 — — — Proceeds from issuance of financial instruments with preferred rights 70,026 — — — Repurchase of ordinary shares (4,102) — — — Proceeds from investors to the Company 299,051 48,617 — — Proceeds from exercise of awards — 2,169 843 123 Proceeds from loans from Group companies — 75,457 25,000 3,624 Payments in relation to listing expenses (21,691) — — — Net cash generated from financing activities 2,043,169 126,243 25,843 3,747 Net increase/(decrease) in cash and cash equivalents 966,595 (888,004) (41,924) (6,078) Cash and cash equivalents at beginning of year 122,104 941,541 44,691 6,480 Exchange differences on cash and cash equivalents (147,158) (8,846) 1,444 209 Cash and cash equivalents at end of year 941,541 44,691 4,211 611 |
General information and group_3
General information and group structure - Consolidated principal subsidiaries, VIEs and subsidiaries of VIEs (Details) - 12 months ended Dec. 31, 2022 | HKD ($) | USD ($) | CNY (¥) |
Genetron Health | |||
General information and group structure | |||
Place Of Incorporation | Beijing, PRC May 7, 2015 | ||
Registered capital | ¥ 57,438,800 | ||
Effective equity interest held | 100% | ||
Principal activities | Gene-related detection services | ||
Genetron (Wuxi) Biotech Co., Ltd. | |||
General information and group structure | |||
Place Of Incorporation | Wuxi, PRC October 14, 2020 | ||
Registered capital | 20,000,000 | ||
Effective equity interest held | 100% | ||
Principal activities | Gene-related detection services | ||
Shanghai Genetron Bio-Technology Co., Ltd. | |||
General information and group structure | |||
Place Of Incorporation | Shanghai, PRC July 8, 2015 | ||
Registered capital | 20,000,000 | ||
Effective equity interest held | 100% | ||
Principal activities | Investment holding | ||
Genetron Health (Chongqing) Co., Ltd. | |||
General information and group structure | |||
Place Of Incorporation | Chongqing, PRC March 1, 2016 | ||
Registered capital | 20,000,000 | ||
Effective equity interest held | 100% | ||
Principal activities | Investment holding and IVD products sales | ||
Beijing Genetron Biotechnology Co., Ltd. | |||
General information and group structure | |||
Place Of Incorporation | Beijing, PRC March 11, 2016 | ||
Registered capital | 20,000,000 | ||
Effective equity interest held | 100% | ||
Principal activities | Investment holding | ||
Guangzhou Genetron Bio-Technology Co., Ltd. | |||
General information and group structure | |||
Place Of Incorporation | Guangzhou, PRC July 4, 2019 | ||
Registered capital | 10,000,000 | ||
Effective equity interest held | 100% | ||
Principal activities | Investment holding | ||
Beijing Genetron Medical Laboratory Co., Ltd. | |||
General information and group structure | |||
Place Of Incorporation | Beijing, PRC November 5, 2015 | ||
Registered capital | 12,000,000 | ||
Effective equity interest held | 100% | ||
Principal activities | Gene-related detection services | ||
Shanghai Genetron Medical Laboratory Co., Ltd. | |||
General information and group structure | |||
Place Of Incorporation | Shanghai, PRC December 14, 2015 | ||
Registered capital | 30,000,000 | ||
Effective equity interest held | 100% | ||
Principal activities | Gene-related detection services | ||
Chongqing Genetron Medical Laboratory Co., Ltd. | |||
General information and group structure | |||
Place Of Incorporation | Chongqing, PRC August 11, 2016 | ||
Registered capital | 20,000,000 | ||
Effective equity interest held | 100% | ||
Principal activities | Gene-related detection services | ||
Guangzhou Genetron Medical Laboratory Co., Ltd. | |||
General information and group structure | |||
Place Of Incorporation | Guangzhou, PRC July 8, 2019 | ||
Registered capital | 10,000,000 | ||
Effective equity interest held | 100% | ||
Principal activities | Gene-related detection services | ||
Genetron Health Technologies Inc [Member] | |||
General information and group structure | |||
Place Of Incorporation | Delaware, United States of America April 28, 2015 | ||
Registered capital | $ | $ 10,000,000 | ||
Effective equity interest held | 100% | ||
Principal activities | Research services | ||
Directly held | Genetron HK | |||
General information and group structure | |||
Place Of Incorporation | Hong Kong, June 6, 2018 | ||
Registered capital | $ | $ 10,000 | ||
Effective equity interest held | 100% | ||
Principal activities | Investment holding | ||
Directly held | Genetron Health, Inc. | |||
General information and group structure | |||
Place Of Incorporation | Delaware, United States of America August 23, 2019 | ||
Registered capital | $ | 1 | ||
Effective equity interest held | 100% | ||
Principal activities | Molecular diagnostic services | ||
Directly held | Genetron (Tianjin) Co., Ltd. | |||
General information and group structure | |||
Place Of Incorporation | Tianjin, PRC March 8, 2019 | ||
Registered capital | 1,000,000,000 | ||
Effective equity interest held | 100% | ||
Principal activities | Biotechnology development and technical services | ||
Directly held | Shanghai Junran Bio-Technology Co., Ltd. | |||
General information and group structure | |||
Place Of Incorporation | Shanghai, PRC July 1, 2019 | ||
Registered capital | 500,000,000 | ||
Effective equity interest held | 100% | ||
Principal activities | Biotechnology development and technical services | ||
Directly held | Genetron (Wuxi) Business Management Co., Ltd. | |||
General information and group structure | |||
Place Of Incorporation | Wuxi, PRC December 3, 2020 | ||
Registered capital | $ | $ 50,000,000 | ||
Effective equity interest held | 90% | ||
Principal activities | Investment holding | ||
Directly held | Genetron (Hainan) Biotech Co., Ltd. | |||
General information and group structure | |||
Place Of Incorporation | Haikou, PRC January 18, 2022 | ||
Registered capital | ¥ 300,000,000 | ||
Effective equity interest held | 100% |
General information and group_4
General information and group structure - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
General information and group structure | |
Entity incorporation date of incorporation | Apr. 09, 2018 |
Country of incorporation | Cayman Islands |
Summary of significant accoun_4
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 |
Summary of significant accoun_5
Summary of significant accounting policies - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Transporting equipment | |
Property, plant and equipment | |
Property, plant and equipment | 4 years |
Leasehold improvements | |
Property, plant and equipment | |
Description of useful life, property, plant and equipment | shorter of lease period |
Minimum | Instruments and equipment | |
Property, plant and equipment | |
Property, plant and equipment | 3 years |
Minimum | Office equipment and furniture | |
Property, plant and equipment | |
Property, plant and equipment | 3 years |
Minimum | Leasehold improvements | |
Property, plant and equipment | |
Property, plant and equipment | 3 years |
Maximum | Instruments and equipment | |
Property, plant and equipment | |
Property, plant and equipment | 5 years |
Maximum | Office equipment and furniture | |
Property, plant and equipment | |
Property, plant and equipment | 5 years |
Maximum | Leasehold improvements | |
Property, plant and equipment | |
Property, plant and equipment | 10 years |
Summary of significant accoun_6
Summary of significant accounting policies - Additional Information (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2019 CNY (¥) | |
Summary of significant accounting policies | ||||||
Net operating loss | ¥ 702,006,000 | $ 101,781 | ¥ 517,848,000 | ¥ 268,376,000 | ||
Net cash outflows from operating activities | 460,197,000 | 66,722 | 524,144,000 | 300,897,000 | ||
Net assets | 548,356,000 | 1,210,052,000 | $ 79,504 | |||
Net current assets | ¥ 319,085,000 | 982,085,000 | ||||
Closing foreign exchange rate | 6.8972 | |||||
Right-of-use assets | ¥ 38,884,000 | 52,074,000 | 59,706,000 | 5,638 | ¥ 43,182,000 | |
Total shareholders' equity | 548,356,000 | 1,210,052,000 | 1,692,545,000 | $ 79,504 | ¥ (1,778,331,000) | |
Loss for the year | ¥ (810,630,000) | $ (117,530) | (502,598,000) | (3,069,043,000) | ||
Minimum | ||||||
Summary of significant accounting policies | ||||||
Lessee lease term | 2 years | 2 years | ||||
Maximum | ||||||
Summary of significant accounting policies | ||||||
Lessee lease term | 7 years | 7 years | ||||
Computer software | Minimum | ||||||
Summary of significant accounting policies | ||||||
Finite lived intangible assets estimated useful lives | 5 years | 5 years | ||||
Computer software | Maximum | ||||||
Summary of significant accounting policies | ||||||
Finite lived intangible assets estimated useful lives | 10 years | 10 years | ||||
Other intangible assets | ||||||
Summary of significant accounting policies | ||||||
Finite lived intangible assets estimated useful lives | 4 years | 4 years | ||||
Variable Interest Entity | ||||||
Summary of significant accounting policies | ||||||
Net cash outflows from operating activities | ¥ 227,234,000 | $ 32,947 | 405,910,000 | 196,594,000 | ||
Loss for the year | ¥ (550,429,000) | $ (79,805) | ¥ (425,411,000) | ¥ (236,102,000) | ||
Variable Interest Entity | Equity Pledge Agreement | ||||||
Summary of significant accounting policies | ||||||
Percentage of equity interest pledged | 100% | 100% | ||||
Variable Interest Entity | Exclusive Business Co-operation Agreement | ||||||
Summary of significant accounting policies | ||||||
Percentage of net profits eligible in respect of fees | 100% | 100% |
Financial risk management - Cre
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% | 9% |
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% | 13% |
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% | 3% |
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% | 19% |
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% | 14% |
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% | 12% |
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% | 34% |
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% | 29% |
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% | 26% |
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% | 81% |
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% | 55% |
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% | 54% |
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% | 100% |
Trade receivables and contract assets, gross | ¥ 2,310 | |
Loss allowance | ¥ 2,310 | |
After 3 years | Hospital customers | ||
Financial risk management | ||
Expected loss rate | 66% | 100% |
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% | 100% |
Trade receivables and contract assets, gross | ¥ 1,238 | ¥ 548 |
Loss allowance | ¥ 1,238 | ¥ 548 |
Financial risk management - Liq
Financial risk management - Liquidity risk (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
Financial risk management | |||||
Financial instruments with preferred rights | ¥ 0 | ¥ 0 | ¥ 2,106,334 | ||
Borrowings | ¥ 116,832 | 19,554 | |||
Lease liabilities | 41,735 | 54,437 | |||
Other non-current liabilities | 9,760 | $ 1,416 | 8,612 | ||
Total | 360,215 | 243,119 | |||
Borrowings | |||||
Financial risk management | |||||
Borrowings | 120,272 | 20,206 | |||
Lease liabilities. | |||||
Financial risk management | |||||
Lease liabilities | 45,645 | 60,694 | |||
Trade payables. | |||||
Financial risk management | |||||
Trade payables | 63,048 | 55,767 | |||
Other payables. | |||||
Financial risk management | |||||
Other payables | 116,160 | 92,488 | |||
Amounts due to related party | |||||
Financial risk management | |||||
Amounts due to a related parties | 3 | ||||
Other non-current liabilities | |||||
Financial risk management | |||||
Other non-current liabilities | 15,090 | 13,961 | |||
Less than 1 year | |||||
Financial risk management | |||||
Total | 315,419 | 191,275 | |||
Less than 1 year | Borrowings | |||||
Financial risk management | |||||
Borrowings | 113,066 | 20,206 | |||
Less than 1 year | Lease liabilities. | |||||
Financial risk management | |||||
Lease liabilities | 23,145 | 22,811 | |||
Less than 1 year | Trade payables. | |||||
Financial risk management | |||||
Trade payables | 63,048 | 55,767 | |||
Less than 1 year | Other payables. | |||||
Financial risk management | |||||
Other payables | 116,160 | 92,488 | |||
Less than 1 year | Amounts due to related party | |||||
Financial risk management | |||||
Amounts due to a related parties | 3 | ||||
Between 1 and 2 years | |||||
Financial risk management | |||||
Total | 19,565 | 19,850 | |||
Between 1 and 2 years | Borrowings | |||||
Financial risk management | |||||
Borrowings | 7,206 | ||||
Between 1 and 2 years | Lease liabilities. | |||||
Financial risk management | |||||
Lease liabilities | 12,359 | 19,850 | |||
Between 2 and 5 years | |||||
Financial risk management | |||||
Total | 25,231 | 30,312 | |||
Between 2 and 5 years | Lease liabilities. | |||||
Financial risk management | |||||
Lease liabilities | 10,141 | 16,351 | |||
Between 2 and 5 years | Other non-current liabilities | |||||
Financial risk management | |||||
Other non-current liabilities | ¥ 15,090 | 13,961 | |||
Over 5 years | |||||
Financial risk management | |||||
Total | 1,682 | ||||
Over 5 years | Lease liabilities. | |||||
Financial risk management | |||||
Lease liabilities | ¥ 1,682 |
Financial risk management - Fai
Financial risk management - Fair value estimation (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Financial risk management | |||
Financial asset at fair value through profit or loss | ¥ 50,496 | $ 7,321 | ¥ 49,780 |
Total | 207,922 | 203,225 | |
Level 1 | |||
Financial risk management | |||
Total | 5,917 | 7,082 | |
Level 2 | |||
Financial risk management | |||
Total | 2,002 | ||
Level 3 | |||
Financial risk management | |||
Total | 202,005 | 194,141 | |
Other investments | |||
Financial risk management | |||
Financial asset at fair value through profit or loss | 50,496 | 49,780 | |
Other investments | Level 3 | |||
Financial risk management | |||
Financial asset at fair value through profit or loss | 50,496 | 49,780 | |
Wealth management products | |||
Financial risk management | |||
Financial asset at fair value through profit or loss | 151,509 | 144,361 | |
Wealth management products | Level 3 | |||
Financial risk management | |||
Financial asset at fair value through profit or loss | 151,509 | 144,361 | |
Equity security | |||
Financial risk management | |||
Financial asset at fair value through profit or loss | 5,917 | 7,082 | |
Equity security | Level 1 | |||
Financial risk management | |||
Financial asset at fair value through profit or loss | ¥ 5,917 | 7,082 | |
Foreign currency forwards | |||
Financial risk management | |||
Derivative financial instruments | 2,002 | ||
Foreign currency forwards | Level 2 | |||
Financial risk management | |||
Derivative financial instruments | ¥ 2,002 |
Financial risk management - Mov
Financial risk management - Movements in level 3 instruments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Financial risk management | ||||
Opening balance | ¥ 1,517,619 | |||
Closing balance | 975,326 | $ 141,409 | ¥ 1,517,619 | |
Level 3 | Wealth management products | ||||
Financial risk management | ||||
Opening balance | 144,361 | 130,002 | ¥ 122,224 | |
Additions | 1,180,045 | 1,650,355 | 1,628,558 | |
Gain/(loss) recognized in other income and gains - net | (12,363) | (5,867) | 4,652 | |
Redemption | (1,169,346) | (1,628,463) | (1,625,106) | |
Exchange differences | 8,812 | (1,666) | (326) | |
Closing balance | 151,509 | 144,361 | 130,002 | |
Level 3 | Other investments | ||||
Financial risk management | ||||
Opening balance | 49,780 | 19,609 | ||
Additions | 28,895 | 19,000 | ||
Fair value change recognized in profit or loss | (1,640) | 1,668 | 609 | |
Exchange differences | 2,356 | (392) | ||
Closing balance | ¥ 50,496 | ¥ 49,780 | ¥ 19,609 |
Financial risk management - Add
Financial risk management - Additional Information (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial risk management | |||
Percentage of strengthened/weakened in risk assumption | 5% | ||
Decrease/increase in net loss | ¥ 61,584,000 | ¥ 43,498,000 | ¥ 14,577,000 |
Receivables | 656,626,000 | 1,159,572,000 | |
Net debt outstanding | 0 | ||
Individually assessed | Gross carrying amount | |||
Financial risk management | |||
Receivables | 1,269,000 | 1,296,000 | |
Individually assessed | Accumulated depreciation | |||
Financial risk management | |||
Allowance for losses of individual assess receivables | ¥ (1,269,000) | ¥ (1,296,000) |
Revenue and segment informati_3
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 |
Revenue and segment informati_4
Revenue and segment information - Summary of reconciliation of segment profits to loss for the year (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 | ||||
Loss for the year | ¥ (810,630) | $ (117,530) | ¥ (502,598) | ¥ (3,069,043) |
Material reconciling items | ||||
Revenue and segment information | ||||
Loss for the year | (810,630) | (502,598) | (3,069,043) | |
Material reconciling items | Total segment profits | ||||
Revenue and segment information | ||||
Loss for the year | 281,428 | 337,967 | 260,217 | |
Material reconciling items | operating expenses | ||||
Revenue and segment information | ||||
Loss for the year | (983,434) | (855,815) | (528,593) | |
Material reconciling items | finance income/(costs) - net | ||||
Revenue and segment information | ||||
Loss for the year | ¥ (108,624) | ¥ 15,250 | 22,703 | |
Material reconciling items | losses from financial instruments with preferred rights | ||||
Revenue and segment information | ||||
Loss for the year | ¥ (2,823,370) |
Revenue and segment informati_5
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 |
Revenue and segment informati_6
Revenue and segment information - Summary of assets and liabilities related to contracts with customers (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | |
Revenue and segment information | |||
Contract assets | ¥ 18,464 | ¥ 8,458 | |
Less: loss allowance | (3,767) | (683) | |
Contract assets, net | 14,697 | 7,775 | $ 2,131 |
Contract liabilities | 9,589 | 11,962 | $ 1,390 |
Revenue recognized that was included in the contract liabilities balance at the beginning of the year | ¥ 8,303 | ¥ 6,607 |
Expenses by nature - Summary of
Expenses by nature - Summary of expenses by nature (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses by nature | |||
Cost of inventories and consumables used | ¥ 231,780 | ¥ 209,833 | ¥ 148,988 |
Employee benefit expenses | 487,788 | 414,604 | 268,986 |
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 |
Promotion expenses | 185,597 | 167,298 | 131,209 |
Rental, utilities and office expenses | 25,130 | 27,472 | 16,347 |
Professional service fees | ¥ 89,817 | ¥ 88,829 | ¥ 36,135 |
Employee benefit expenses - Sum
Employee benefit expenses - Summary of employee benefit expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee benefit expenses. | |||
Wages, salaries and bonuses | ¥ 361,797 | ¥ 279,443 | ¥ 195,462 |
Welfare expenses | 23,167 | 10,711 | 8,637 |
Housing funds | 26,610 | 21,299 | 14,799 |
Contributions to pension plans | 58,721 | 49,007 | 20,137 |
Share-based compensation expenses | 17,493 | 54,144 | 29,951 |
Employee benefits expense | ¥ 487,788 | ¥ 414,604 | ¥ 268,986 |
Employee benefit expenses - S_2
Employee benefit expenses - Summary of employee benefit expenses categories in the consolidated statements of loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Employee benefit expenses | ||||
Cost of revenue | ¥ 369,278 | $ 53,540 | ¥ 193,983 | ¥ 164,268 |
Selling expenses | 364,564 | 52,857 | 343,161 | 246,959 |
Administrative expenses | 266,908 | 38,698 | 227,001 | 126,318 |
Research and development expenses | 290,286 | $ 42,087 | 253,950 | 148,999 |
Employee benefits expense | 487,788 | 414,604 | 268,986 | |
Employee benefit expenses | ||||
Employee benefit expenses | ||||
Cost of revenue | 57,795 | 35,589 | 27,108 | |
Selling expenses | 148,963 | 142,699 | 101,379 | |
Administrative expenses | 121,185 | 101,957 | 64,610 | |
Research and development expenses | 159,845 | 134,359 | 75,889 | |
Employee benefits expense | ¥ 487,788 | ¥ 414,604 | ¥ 268,986 |
Other income and gains - net -
Other income and gains - net - Summary of Other Income and Gains Nets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Other income and gains - net | ||||
Investment income from wealth management products | ¥ 3,366 | ¥ 4,925 | ¥ 4,182 | |
Dividends from equity security | 422 | 745 | ||
Fair value gain/(loss) on wealth management product | (15,729) | (10,792) | 470 | |
Fair value gain/(loss) on equity security | (1,733) | (3,011) | (3,153) | |
Fair value gain/(loss) on other investment | (1,640) | 1,668 | 609 | |
Fair value gain/(loss) on derivative financial instruments | 2,002 | 196 | ||
Gain/(loss) on settlement of derivative financial instruments | 8,709 | 1,550 | ||
Gain/(loss) on disposal of property, plant and equipment | (302) | |||
Gain/(loss) on disposal of right-of-use assets | (182) | (846) | ||
Gain/(loss) on disposal of subsidiaries | 2,305 | |||
Government grants | 8,710 | 3,991 | 3,869 | |
Amortization on deferred income from ADS depository | 3,756 | 4,373 | 2,405 | |
Donations | (678) | (9,866) | (2,327) | |
Others | 1,344 | 1,126 | 725 | |
Other income and gains - net | ¥ (2,666) | $ (387) | ¥ 5,329 | ¥ 8,526 |
Finance income_(costs) - net -
Finance income/(costs) - net - Detailed information of Finance income (costs) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Finance income/(costs) - net | ||||
Finance income | ¥ 2,861 | $ 415 | ¥ 20,501 | ¥ 28,330 |
Interests from bank deposits | 1,947 | 1,189 | 433 | |
Interests from others | 914 | 204 | ||
Net exchange gains | 19,108 | 27,897 | ||
Finance costs | (111,485) | (16,164) | (5,251) | (5,627) |
Interest on lease liabilities | (2,459) | (2,999) | (2,069) | |
Interests on borrowings | (3,914) | (1,311) | (3,298) | |
Interests on redemption liabilities | (1,148) | (941) | ||
Net exchange losses | (103,964) | |||
Others | (260) | |||
Finance income/(costs) - net | ¥ (108,624) | $ (15,749) | ¥ 15,250 | ¥ 22,703 |
Income tax expense - Summary of
Income tax expense - Summary of reconciliation between the Groups actual tax charge and statutory income tax rate (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Income tax expense | ||||
Loss before income tax | ¥ (810,630) | $ (117,530) | ¥ (502,598) | ¥ (3,069,043) |
Tax credits calculated at statutory tax rate of 25% | (202,658) | (125,650) | (767,261) | |
Effects of preferential tax rates and different tax rates in other jurisdictions | 76,018 | 51,843 | 18,900 | |
Expenses not deductible for income tax purpose | 36,891 | 29,102 | 722,458 | |
Super deduction of research and development expenses | (11,056) | (11,416) | (8,390) | |
Tax losses and deductible temporary differences for which no deferred income tax assets were recognized | 100,805 | 56,121 | 34,293 | |
Income tax expense | ¥ 0 | ¥ 0 | ¥ 0 |
Income tax expense - Summary _2
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% | |
PRC | ||
Income tax expense | ||
Statutory income tax rate | 25% | |
Preferential Tax Rate | 15% |
Income tax expense - Additional
Income tax expense - Additional Information (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax expense | ||
Applicable tax rate | 25% | |
Deferred income tax assets | ¥ 297 | ¥ 196 |
Tax effect of tax losses expiration year | 2032 years | 2031 years |
Tax effect of tax losses | ¥ 1,705 | ¥ 1,188 |
Unrecognized uncertain tax positions | ¥ 0 | ¥ 0 |
HONG KONG | ||
Income tax expense | ||
Applicable tax rate | 0% | |
Accounting profit | ¥ 0 |
Loss per share - Summary of bas
Loss per share - Summary of basic and diluted loss per share reflecting the effect of the issuance of ordinary shares by the company (Details) ¥ / shares in Units, ¥ in Thousands, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Loss per share | ||||
Loss attributable to owners of the Company | ¥ (808,403) | $ (117,207) | ¥ (496,238) | ¥ (3,069,043) |
Weighted average number of ordinary shares outstanding | shares | 463,976 | 463,976 | 460,547 | 301,380 |
Basic loss | ¥ (1.74) | ¥ (1.08) | ¥ (10.18) | |
ADS. | ||||
Loss per share | ||||
Basic loss | ¥ (8.71) | ¥ (5.39) | ¥ (50.92) |
Loss per share - Summary of mov
Loss per share - Summary of movement of number of ordinary shares outstanding (excluding treasury shares) (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loss per share | |||
At beginning of the year | 462,869 | 456,707 | 123,584 |
Ordinary shares issued upon IPO | 80,000 | ||
Ordinary shares converted from Preferred Shares upon IPO | 220,332 | ||
Restricted shares vested | 17,894 | ||
Awards vested | 1,928 | 6,162 | 14,897 |
At end of the year | 464,797 | 462,869 | 456,707 |
Property, plant and equipment -
Property, plant and equipment - Summary of property plant and equipment (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) | |
Property, plant and equipment | |||||
Net book value | ¥ 138,753 | ¥ 110,285 | ¥ 76,891 | ¥ 83,013 | |
Opening net book value | 110,285 | 76,891 | 83,013 | ||
Additions | 79,066 | 70,679 | 27,377 | ||
Disposals | (540) | (402) | |||
Depreciation | (50,693) | (36,865) | (33,466) | ||
Exchange differences | 635 | (18) | (33) | ||
Closing net book value | 138,753 | $ 20,117 | 110,285 | 76,891 | |
Cost | |||||
Property, plant and equipment | |||||
Net book value | 339,981 | 265,295 | 200,392 | 173,161 | |
Accumulated amortization and impairment | |||||
Property, plant and equipment | |||||
Net book value | (201,228) | (155,010) | (123,501) | (90,148) | |
Instruments and equipment | |||||
Property, plant and equipment | |||||
Net book value | 87,048 | 94,175 | 66,065 | 74,563 | |
Opening net book value | 94,175 | 66,065 | 74,563 | ||
Additions | 35,105 | 58,169 | 19,573 | ||
Disposals | (318) | (313) | |||
Depreciation | (42,319) | (29,729) | (28,038) | ||
Exchange differences | 405 | (17) | (33) | ||
Closing net book value | 87,048 | 94,175 | 66,065 | ||
Instruments and equipment | Cost | |||||
Property, plant and equipment | |||||
Net book value | 256,216 | 222,203 | 167,085 | 147,658 | |
Instruments and equipment | Accumulated amortization and impairment | |||||
Property, plant and equipment | |||||
Net book value | (169,168) | (128,028) | (101,020) | (73,095) | |
Office equipment and furniture | |||||
Property, plant and equipment | |||||
Net book value | 2,418 | 3,041 | 2,323 | 2,199 | |
Opening net book value | 3,041 | 2,323 | 2,199 | ||
Additions | 258 | 1,683 | 908 | ||
Disposals | (5) | (54) | |||
Depreciation | (900) | (910) | (784) | ||
Exchange differences | 24 | (1) | 0 | ||
Closing net book value | 2,418 | 3,041 | 2,323 | ||
Office equipment and furniture | Cost | |||||
Property, plant and equipment | |||||
Net book value | 6,152 | 5,971 | 4,861 | 3,953 | |
Office equipment and furniture | Accumulated amortization and impairment | |||||
Property, plant and equipment | |||||
Net book value | (3,734) | (2,930) | (2,538) | (1,754) | |
Transporting equipment | |||||
Property, plant and equipment | |||||
Net book value | 23 | 79 | 191 | 303 | |
Opening net book value | 79 | 191 | 303 | ||
Additions | 0 | 0 | 0 | ||
Disposals | 0 | 0 | |||
Depreciation | (56) | (112) | (112) | ||
Exchange differences | 0 | 0 | 0 | ||
Closing net book value | 23 | 79 | 191 | ||
Transporting equipment | Cost | |||||
Property, plant and equipment | |||||
Net book value | 469 | 469 | 469 | 469 | |
Transporting equipment | Accumulated amortization and impairment | |||||
Property, plant and equipment | |||||
Net book value | (446) | (390) | (278) | (166) | |
Leasehold improvements | |||||
Property, plant and equipment | |||||
Net book value | 49,264 | 12,990 | 8,312 | 5,948 | |
Opening net book value | 12,990 | 8,312 | 5,948 | ||
Additions | 43,703 | 10,827 | 6,896 | ||
Disposals | (217) | (35) | |||
Depreciation | (7,418) | (6,114) | (4,532) | ||
Exchange differences | 206 | 0 | 0 | ||
Closing net book value | 49,264 | 12,990 | 8,312 | ||
Leasehold improvements | Cost | |||||
Property, plant and equipment | |||||
Net book value | 77,144 | 36,652 | 27,977 | 21,081 | |
Leasehold improvements | Accumulated amortization and impairment | |||||
Property, plant and equipment | |||||
Net book value | ¥ (27,880) | ¥ (23,662) | ¥ (19,665) | ¥ (15,133) |
Leases - Summary of right of us
Leases - Summary of right of use assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Leases | ||||
Net book value | ¥ 38,884 | ¥ 52,074 | ¥ 59,706 | |
Opening net book amount | 52,074 | 59,706 | 43,182 | |
Disposals | (1,215) | (719) | ||
Additions | 9,187 | 17,495 | 34,801 | |
Depreciation | (22,125) | (23,821) | (18,277) | |
Exchange differences | 963 | (587) | ||
Closing net book amount | 38,884 | $ 5,638 | 52,074 | 59,706 |
Cost | ||||
Leases | ||||
Net book value | 97,940 | 101,469 | 92,767 | |
Opening net book amount | 101,469 | 92,767 | 57,966 | |
Closing net book amount | 97,940 | 101,469 | 92,767 | |
Accumulated depreciation | ||||
Leases | ||||
Net book value | (59,056) | (49,395) | (33,061) | |
Opening net book amount | (49,395) | (33,061) | (14,784) | |
Closing net book amount | (59,056) | (49,395) | (33,061) | |
Properties [Member] | ||||
Leases | ||||
Net book value | 38,884 | 52,074 | 59,692 | |
Opening net book amount | 52,074 | 59,692 | 43,150 | |
Disposals | (1,215) | (719) | ||
Additions | 9,187 | 17,495 | 34,801 | |
Depreciation | (22,125) | (23,807) | (18,259) | |
Exchange differences | 963 | (587) | ||
Closing net book amount | 38,884 | 52,074 | 59,692 | |
Properties [Member] | Cost | ||||
Leases | ||||
Net book value | 97,940 | 101,469 | 92,717 | |
Opening net book amount | 101,469 | 92,717 | 57,916 | |
Closing net book amount | 97,940 | 101,469 | 92,717 | |
Properties [Member] | Accumulated depreciation | ||||
Leases | ||||
Net book value | (59,056) | (49,395) | (33,025) | |
Opening net book amount | (49,395) | (33,025) | (14,766) | |
Closing net book amount | ¥ (59,056) | (49,395) | (33,025) | |
Office equipment and furniture | ||||
Leases | ||||
Net book value | 14 | |||
Opening net book amount | 14 | 32 | ||
Depreciation | (14) | (18) | ||
Closing net book amount | 14 | |||
Office equipment and furniture | Cost | ||||
Leases | ||||
Net book value | 50 | |||
Opening net book amount | 50 | 50 | ||
Closing net book amount | 50 | |||
Office equipment and furniture | Accumulated depreciation | ||||
Leases | ||||
Net book value | (36) | |||
Opening net book amount | ¥ (36) | (18) | ||
Closing net book amount | ¥ (36) |
Leases - Disclosure Of Quantita
Leases - Disclosure Of Quantitative Information About Lease Liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Leases | |||
Non-current | ¥ 20,245 | $ 2,935 | ¥ 33,865 |
Current | 21,490 | $ 3,116 | 20,572 |
Lease liabilities. | ¥ 41,735 | ¥ 54,437 |
Leases - Disclosure Of Detailed
Leases - Disclosure Of Detailed Information About Breakdown Of Lease Expense Explanatory (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | |||
Interest expense (included in finance costs) | ¥ 2,459 | ¥ 2,999 | ¥ 2,069 |
Expense relating to short-term leases (included in cost of revenue, selling expenses, administrative expenses and research and development expenses) | 3,091 | 2,413 | 530 |
Expense relating to leases of low-value assets that are not shown above as short-term leases (included in cost of revenue, administrative expenses and research and development expenses) | ¥ 332 | ¥ 214 | ¥ 521 |
Leases - Additional Information
Leases - Additional Information (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases | |||
Total cash outflow for leases | ¥ 28,032,000 | ¥ 27,298,000 | ¥ 22,726,000 |
Intangible assets - Summary of
Intangible assets - Summary of Intangible Assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Intangible assets | ||||
Net book value | ¥ 32,068 | ¥ 20,695 | ¥ 12,265 | |
Opening net book value | 20,695 | 12,265 | 5,482 | |
Additions | 16,098 | 10,849 | 8,253 | |
Disposals | (329) | |||
Amortization | (4,606) | (2,399) | (1,452) | |
Exchange differences | 210 | (20) | (18) | |
Closing net book value | 32,068 | $ 4,649 | 20,695 | 12,265 |
Computer software | ||||
Intangible assets | ||||
Net book value | 32,068 | 20,695 | 12,265 | |
Opening net book value | 20,695 | 12,265 | 5,482 | |
Additions | 16,098 | 10,849 | 8,253 | |
Disposals | (329) | |||
Amortization | (4,606) | (2,399) | (1,452) | |
Exchange differences | 210 | (20) | (18) | |
Closing net book value | 32,068 | 20,695 | 12,265 | |
Cost | ||||
Intangible assets | ||||
Net book value | 42,717 | 28,842 | 18,058 | |
Opening net book value | 28,842 | 18,058 | 9,939 | |
Closing net book value | 42,717 | 28,842 | 18,058 | |
Cost | Computer software | ||||
Intangible assets | ||||
Net book value | 42,717 | 26,582 | 15,798 | |
Opening net book value | 26,582 | 15,798 | 7,679 | |
Closing net book value | 42,717 | 26,582 | 15,798 | |
Cost | Patented technology | ||||
Intangible assets | ||||
Net book value | 230 | 230 | ||
Opening net book value | 230 | 230 | 230 | |
Closing net book value | 230 | 230 | ||
Cost | Other intangible assets | ||||
Intangible assets | ||||
Net book value | 2,030 | 2,030 | ||
Opening net book value | 2,030 | 2,030 | 2,030 | |
Closing net book value | 2,030 | 2,030 | ||
Accumulated amortization and impairment | ||||
Intangible assets | ||||
Net book value | (10,649) | (8,147) | (5,793) | |
Opening net book value | (8,147) | (5,793) | (4,457) | |
Closing net book value | (10,649) | (8,147) | (5,793) | |
Accumulated amortization and impairment | Computer software | ||||
Intangible assets | ||||
Net book value | (10,649) | (5,887) | (3,533) | |
Opening net book value | (5,887) | (3,533) | (2,197) | |
Closing net book value | (10,649) | (5,887) | (3,533) | |
Accumulated amortization and impairment | Patented technology | ||||
Intangible assets | ||||
Net book value | (230) | (230) | ||
Opening net book value | (230) | (230) | (230) | |
Closing net book value | (230) | (230) | ||
Accumulated amortization and impairment | Other intangible assets | ||||
Intangible assets | ||||
Net book value | (2,030) | (2,030) | ||
Opening net book value | ¥ (2,030) | (2,030) | (2,030) | |
Closing net book value | ¥ (2,030) | ¥ (2,030) |
Financial instruments by cate_3
Financial instruments by category -Summary of financial instruments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2018 CNY (¥) |
Financial instruments by category | ||||||
Financial assets at fair value through profit or loss | ¥ 50,496 | $ 7,321 | ¥ 49,780 | |||
Cash and cash equivalents | 176,266 | 25,556 | 639,042 | $ 92,652 | ¥ 1,375,766 | ¥ 139,954 |
Financial assets | 656,626 | 1,159,572 | ||||
Borrowings | 116,832 | 19,554 | ||||
Other non-current liabilities | 9,760 | $ 1,416 | 8,612 | |||
Financial liabilities | 347,535 | 230,861 | ||||
Trade receivables | ||||||
Financial instruments by category | ||||||
Trade receivables | 243,123 | 282,113 | ||||
Other receivables | ||||||
Financial instruments by category | ||||||
Other receivables | 29,205 | 34,595 | ||||
Amounts due from related parties | ||||||
Financial instruments by category | ||||||
Amounts due from related parties | 110 | 597 | ||||
Financial assets at fair value through profit or loss | ||||||
Financial instruments by category | ||||||
Financial assets at fair value through profit or loss | 207,922 | 201,223 | ||||
Derivative financial instruments | ||||||
Financial instruments by category | ||||||
Derivative financial instruments | 2,002 | |||||
Cash and cash equivalents | ||||||
Financial instruments by category | ||||||
Cash and cash equivalents | 176,266 | 639,042 | ||||
Borrowings | ||||||
Financial instruments by category | ||||||
Borrowings | 116,832 | 19,554 | ||||
Lease liabilities | ||||||
Financial instruments by category | ||||||
Leases liabilities | 41,735 | 54,437 | ||||
Trade Payables | ||||||
Financial instruments by category | ||||||
Trade payables | 63,048 | 55,767 | ||||
Other Payables | ||||||
Financial instruments by category | ||||||
Other payables | 116,160 | 92,488 | ||||
Amounts due to a related parties | ||||||
Financial instruments by category | ||||||
Amounts due to a related parties | 3 | |||||
Other non-current liabilities | ||||||
Financial instruments by category | ||||||
Other non-current liabilities | 9,760 | 8,612 | ||||
Financial liabilities at amortized cost | ||||||
Financial instruments by category | ||||||
Financial liabilities | 347,535 | 230,861 | ||||
Financial liabilities at amortized cost | Borrowings | ||||||
Financial instruments by category | ||||||
Borrowings | 116,832 | 19,554 | ||||
Financial liabilities at amortized cost | Lease liabilities | ||||||
Financial instruments by category | ||||||
Leases liabilities | 41,735 | 54,437 | ||||
Financial liabilities at amortized cost | Trade Payables | ||||||
Financial instruments by category | ||||||
Trade payables | 63,048 | 55,767 | ||||
Financial liabilities at amortized cost | Other Payables | ||||||
Financial instruments by category | ||||||
Other payables | 116,160 | 92,488 | ||||
Financial liabilities at amortized cost | Amounts due to a related parties | ||||||
Financial instruments by category | ||||||
Amounts due to a related parties | 3 | |||||
Financial liabilities at amortized cost | Other non-current liabilities | ||||||
Financial instruments by category | ||||||
Other non-current liabilities | 9,760 | 8,612 | ||||
Financial assets at FVPL | Financial liabilities at FVPL | ||||||
Financial instruments by category | ||||||
Financial assets | 207,922 | 203,225 | ||||
Financial assets at FVPL | Financial liabilities at FVPL | Financial assets at fair value through profit or loss | ||||||
Financial instruments by category | ||||||
Financial assets at fair value through profit or loss | 207,922 | 201,223 | ||||
Financial assets at FVPL | Financial liabilities at FVPL | Derivative financial instruments | ||||||
Financial instruments by category | ||||||
Derivative financial instruments | 2,002 | |||||
Financial assets at amortized cost | Financial liabilities at amortized cost | ||||||
Financial instruments by category | ||||||
Financial assets | 448,704 | 956,347 | ||||
Financial assets at amortized cost | Financial liabilities at amortized cost | Trade receivables | ||||||
Financial instruments by category | ||||||
Trade receivables | 243,123 | 282,113 | ||||
Financial assets at amortized cost | Financial liabilities at amortized cost | Other receivables | ||||||
Financial instruments by category | ||||||
Other receivables | 29,205 | 34,595 | ||||
Financial assets at amortized cost | Financial liabilities at amortized cost | Amounts due from related parties | ||||||
Financial instruments by category | ||||||
Amounts due from related parties | 110 | 597 | ||||
Financial assets at amortized cost | Financial liabilities at amortized cost | Cash and cash equivalents | ||||||
Financial instruments by category | ||||||
Cash and cash equivalents | ¥ 176,266 | ¥ 639,042 |
Inventories - Summary of Detail
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 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventories | |||
Cost of inventories recognized as operating costs | ¥ 231,780,000 | ¥ 209,833,000 | ¥ 148,988,000 |
Trade receivables - Summary of
Trade receivables - Summary of Detailed Information About Trade Receivables (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Trade receivables | |||
Trade receivables | ¥ 243,123 | $ 35,250 | ¥ 282,113 |
Gross carrying amount | |||
Trade receivables | |||
Trade receivables | 346,683 | 336,136 | |
Loss allowance | |||
Trade receivables | |||
Trade receivables | ¥ (103,560) | ¥ (54,023) |
Other receivables and prepaym_3
Other receivables and prepayments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Statements [Line Items] | |||
Deposits | ¥ 5,172 | ¥ 7,344 | |
Prepayment for goods and service | 40,301 | 59,058 | |
Prepayment for rental expenses | 812 | 536 | |
Others | 25,988 | 31,431 | |
Other receivables and prepayments | 65,431 | $ 9,487 | 97,895 |
Gross carrying amount | |||
Statements [Line Items] | |||
Other receivables and prepayments | 72,273 | 98,369 | |
Loss allowance | |||
Statements [Line Items] | |||
Other receivables and prepayments | ¥ (6,842) | ¥ (474) |
Financial assets at fair valu_3
Financial assets at fair value through profit or loss (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Financial assets at fair value through profit or loss | |||
Current financial assets at fair value through profit or loss | ¥ 157,426 | $ 22,825 | ¥ 151,443 |
Wealth management products | |||
Financial assets at fair value through profit or loss | |||
Current financial assets at fair value through profit or loss | 151,509 | 144,361 | |
Equity security | |||
Financial assets at fair value through profit or loss | |||
Current financial assets at fair value through profit or loss | 5,917 | 7,082 | |
Other investments | |||
Financial assets at fair value through profit or loss | |||
Non-current financial assets at fair value through profit or loss | ¥ 50,496 | ¥ 49,780 |
Financial assets at fair valu_4
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% | ||
Payment to acquire financial assets at fair value through profit or loss | ¥ 29 | ¥ 19 |
Cash and cash equivalents - Sum
Cash and cash equivalents - Summary of cash and cash equivalents (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2018 CNY (¥) |
Cash and cash equivalents | ||||||
Cash and cash equivalents | ¥ 176,266 | $ 25,556 | ¥ 639,042 | $ 92,652 | ¥ 1,375,766 | ¥ 139,954 |
RMB deposits | ||||||
Cash and cash equivalents | ||||||
Cash at bank | 116,685 | 365,613 | ||||
US$ deposits | ||||||
Cash and cash equivalents | ||||||
Cash at bank | 59,560 | 273,402 | ||||
HK$ deposits | ||||||
Cash and cash equivalents | ||||||
Cash at bank | ¥ 21 | ¥ 27 |
Share capital and share premi_3
Share capital and share premium - Summary of Share Capital Authorized (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 CNY (¥) shares | Dec. 31, 2020 USD ($) shares | |
Share capital and share premium | ||
Conversion of preferred shares into ordinary shares | ¥ | ¥ 4,999,811 | |
Preference shares [member] | ||
Share capital and share premium | ||
Opening balance | 213,502,600 | 213,502,600 |
Opening balance | $ | $ 4 | |
Re-designation upon issuance of preferred shares | 6,829,500 | 6,829,500 |
Conversion of preferred share into ordinary shares | (220,332,100) | (220,332,100) |
Conversion of preferred shares into ordinary shares | $ | $ (4) | |
Ordinary shares [member] | ||
Share capital and share premium | ||
Opening balance | 2,286,497,400 | 2,286,497,400 |
Opening balance | $ | $ 46 | |
Re-designation upon issuance of preferred shares | (6,829,500) | (6,829,500) |
Conversion of preferred share into ordinary shares | 220,332,100 | 220,332,100 |
Conversion of preferred shares into ordinary shares | $ | $ 4 | |
Ending balance | 2,500,000,000 | 2,500,000,000 |
Ending balance | $ | $ 50 |
Share capital and share premi_4
Share capital and share premium - Summary of Share Capital Issued (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jun. 19, 2020 shares | Feb. 29, 2020 USD ($) shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 CNY (¥) shares | Dec. 31, 2020 USD ($) shares | |
Share capital and share premium | ||||||||
Opening balance | ¥ 1,210,052 | ¥ 1,692,545 | ¥ (1,778,331) | |||||
Conversion of preferred shares into ordinary shares | shares | 220,332,100 | |||||||
Issuance of ordinary shares upon IPO | 1,657,793 | |||||||
Conversion of preferred shares into ordinary shares | 4,999,811 | |||||||
Exercise of awards | 843 | 2,169 | ||||||
Ending balance | 548,356 | $ 79,504 | 1,210,052 | 1,692,545 | ||||
Share capital | ||||||||
Share capital and share premium | ||||||||
Opening balance | 61 | 9 | 59 | $ 9 | 17 | $ 3 | ||
Issuance of ordinary shares upon IPO | 11 | 2 | ||||||
Conversion of preferred shares into ordinary shares | 31 | 4 | ||||||
Exercise of awards | 0 | 2 | ||||||
Ending balance | 61 | $ 9 | 61 | $ 9 | 59 | $ 9 | ||
Share premium | ||||||||
Share capital and share premium | ||||||||
Opening balance | 6,711,234 | 6,657,562 | ||||||
Issuance of ordinary shares upon IPO | 1,657,782 | |||||||
Conversion of preferred shares into ordinary shares | 4,999,780 | |||||||
Exercise of awards | 23,671 | 53,672 | ||||||
Ending balance | ¥ 6,734,905 | ¥ 6,711,234 | ¥ 6,657,562 | |||||
Ordinary shares [member] | ||||||||
Share capital and share premium | ||||||||
Opening balance | shares | 452,974,980 | 452,974,980 | 441,810,100 | 441,810,100 | 141,478,000 | 141,478,000 | ||
Issuance of ordinary shares | shares | 80,000,000 | 80,000,000 | 80,000,000 | |||||
Conversion of preferred shares into ordinary shares | shares | 220,332,100 | 220,332,100 | ||||||
Conversion of preferred shares into ordinary shares | $ | $ 4 | |||||||
Exercise of awards | shares | 3,993,550 | 3,993,550 | 11,164,880 | 11,164,880 | ||||
Ending balance | shares | 456,968,530 | 456,968,530 | 452,974,980 | 452,974,980 | 441,810,100 | 441,810,100 | ||
Preference shares [member] | ||||||||
Share capital and share premium | ||||||||
Conversion of preferred shares into ordinary shares | $ | $ (4) | |||||||
Series D Two Preferred Shares [Member] | ||||||||
Share capital and share premium | ||||||||
Issuance of ordinary shares | shares | 6,829,500 | |||||||
Proceeds from issuance of preferred shares | $ | $ 10,000 | |||||||
ADS | ||||||||
Share capital and share premium | ||||||||
Issuance of ordinary shares | shares | 16,000,000 |
Treasury shares - Additional In
Treasury shares - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2015 shares | |
Founders [member] | Ordinary shares [member] | |
Treasury shares | |
Number of shares in entity held | 93,506,000 |
Reserves - Additional Informati
Reserves - Additional Information (Details) ¥ in Thousands | 12 Months Ended |
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% |
Percentage of Statutory reserves balance not exceeds of the company's registered capital | 50% |
Share-based payment - Additiona
Share-based payment - Additional Information (Details) ¥ / shares in Units, ¥ in Millions | 12 Months Ended | |||||||
Jul. 17, 2015 | May 07, 2015 ¥ / shares shares | Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2019 shares | May 07, 2015 $ / shares shares | |
Employee benefit expenses | ||||||||
Number of service condition shares option granted to employees from the grant date | 4 years | |||||||
Percentage of shares option granted on the grant date | 25% | |||||||
Number of shares option granted expiry from the grant date | 10 years | |||||||
Weighted average remaining contractual life of outstanding share options | 6 years 1 month 6 days | 6 years 10 months 24 days | 7 years 3 months 18 days | |||||
Ordinary shares | ||||||||
Employee benefit expenses | ||||||||
Number of shares issued | 452,974,980 | 441,810,100 | 456,968,530 | 141,478,000 | ||||
Ordinary shares | Two Thousand Nineteen share incentive Plan | ||||||||
Employee benefit expenses | ||||||||
Number of shares issued | 54,791,600 | |||||||
Genetron Health | Ordinary shares | Two Thousand Nineteen share incentive Plan | ||||||||
Employee benefit expenses | ||||||||
Number of shares issued | 21,340,740 | 16,534,690 | ||||||
Founders | ||||||||
Employee benefit expenses | ||||||||
Par value per share | ¥ / shares | ¥ 1 | |||||||
Founders | RMB | ||||||||
Employee benefit expenses | ||||||||
Number of shares issued | 2,173,600 | |||||||
Par value per share | ¥ / shares | ¥ 1 | |||||||
Percentage of total number of ordinary shares and preferred shares outstanding | 5% | |||||||
Founders | Restriction of ordinary shares | ||||||||
Employee benefit expenses | ||||||||
Weighted average remaining contractual life of outstanding share options | 5 years | |||||||
Conversion of shares | 5 | |||||||
Founders | Restriction of ordinary shares | RMB | ||||||||
Employee benefit expenses | ||||||||
Number of shares issued | 16,527,600 | 16,527,600 | ||||||
Par value per share | (per share) | ¥ 1 | $ 0.03 | ||||||
Founders | Genetron Health | ||||||||
Employee benefit expenses | ||||||||
Weighted average remaining contractual life of outstanding share options | 5 years | |||||||
Conversion of shares | 5 | |||||||
Appraised value stock | ¥ | ¥ 590 | |||||||
Founders | Genetron Health | USD | ||||||||
Employee benefit expenses | ||||||||
Number of shares issued | 10,868,000 | |||||||
Par value per share | $ / shares | $ 0.03 | |||||||
Founders | Genetron Health | Restriction of ordinary shares | ||||||||
Employee benefit expenses | ||||||||
Number of shares issued | 82,638,000 | 82,638,000 | ||||||
Founders | Genetron Health | Minimum | ||||||||
Employee benefit expenses | ||||||||
Percentage of total shares outstanding | 3% | |||||||
Founders | Genetron Health | Maximum | ||||||||
Employee benefit expenses | ||||||||
Percentage of total shares outstanding | 5% |
Share-based payment - Summary o
Share-based payment - Summary of Movements of Employee Share Options During The Reported Period (Details) | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) $ / shares | Dec. 31, 2021 CNY (¥) $ / shares | Dec. 31, 2020 CNY (¥) $ / shares | Dec. 31, 2020 CNY (¥) ¥ / shares $ / shares | |
Share-based payment | ||||
Exercise price - Outstanding at beginning of the year | $ / shares | $ 0.32 | $ 0.13 | $ 0.03 | |
Exercise price - Granted during the year | (per share) | 0.99 | 0.96 | ¥ 0.88 | |
Exercise price - Exercised during the year | $ / shares | 0.03 | 0.03 | ||
Exercise price - Forfeited | (per share) | 0.92 | 0.14 | ¥ 0.03 | |
Exercise price - Outstanding at end of the year | $ / shares | 0.39 | 0.32 | 0.13 | |
Exercise price - Exercisable at end of the year | $ / shares | $ 0.22 | $ 0.10 | $ 0.03 | ¥ 0.03 |
Number of awards - Outstanding at beginning of the year | 17,456,299 | 26,216,268 | 23,481,970 | 23,481,970 |
Number of awards - Granted during the year | 261,045 | 2,701,746 | 3,035,000 | 3,035,000 |
Number of awards - Exercised during the year | (3,993,550) | (11,164,880) | ||
Number of awards - Forfeited | (611,430) | (296,835) | (300,702) | (300,702) |
Number of awards - Outstanding at end of the year | 13,112,364 | 17,456,299 | 26,216,268 | 26,216,268 |
Number of awards - Exercisable at end of the year | 9,708,447 | 10,006,742 | 14,897,089 | 14,897,089 |
Share-based payment - Summary_2
Share-based payment - Summary of Binominal Option-Pricing Model To Determine The Fair Value of Options At Each of The Grant Dates (Details) | 12 Months Ended | ||
Dec. 31, 2022 Y $ / shares | Dec. 31, 2021 Y $ / shares | Dec. 31, 2020 Y $ / shares | |
Employee benefit expenses | |||
Exercise prices | $ 0.99 | ||
Dividend yield | 0% | 0% | 0% |
Expected term | Y | 10 | 10 | 10 |
Minimum | |||
Employee benefit expenses | |||
Fair values at grant date | $ 0 | $ 1.96 | $ 1.76 |
Exercise prices | $ 0.03 | $ 0.03 | |
Risk-free interest rates | 3.89% | 1.48% | 0.64% |
Expected volatilities | 61.90% | 53.40% | 54.90% |
Maximum | |||
Employee benefit expenses | |||
Fair values at grant date | $ 1.15 | $ 4.51 | $ 2.38 |
Exercise prices | $ 0.99 | $ 0.99 | |
Risk-free interest rates | 3.90% | 1.67% | 0.67% |
Expected volatilities | 62.13% | 55.60% | 55.10% |
Share-based payment - Summary_3
Share-based payment - Summary of The Movement of The Restricted Shares (Details) - Restriction of ordinary shares - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee benefit expenses | |||
Outstanding, beginning of year | 7,024 | ||
Vested and released | 0 | 0 | (7,024) |
Outstanding, end of year | 0 | 7,024 |
Share-based payment - Summary_4
Share-based payment - Summary of Share-based Compensation Expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee benefit expenses | |||
Expense from share-based payment transactions with employees | ¥ 17,493 | ¥ 54,144 | ¥ 29,951 |
Cost of revenue | |||
Employee benefit expenses | |||
Expense from share-based payment transactions with employees | 485 | 808 | 300 |
Selling expenses | |||
Employee benefit expenses | |||
Expense from share-based payment transactions with employees | 5,206 | 15,243 | 3,906 |
Administrative expenses | |||
Employee benefit expenses | |||
Expense from share-based payment transactions with employees | 4,162 | 19,346 | 15,013 |
Research and development expenses | |||
Employee benefit expenses | |||
Expense from share-based payment transactions with employees | ¥ 7,640 | ¥ 18,747 | ¥ 10,732 |
Borrowings - Summary of Borrowi
Borrowings - Summary of Borrowing (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Borrowings | |||
Other borrowings | ¥ 7,098 | $ 1,029 | |
Bank borrowings | 86,023 | ¥ 15,153 | |
Current portion of other borrowings | 23,711 | 4,401 | |
Current borrowings and current portion of non-current borrowings | 109,734 | $ 15,910 | 19,554 |
Total | ¥ 116,832 | ¥ 19,554 |
Borrowings - Additional informa
Borrowings - Additional information (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Borrowings | ||
Term of debt | 1 year | |
Unutilized bank facilities | ¥ 63 | ¥ 4 |
Bank borrowings | ||
Borrowings | ||
Borrowings, interest rate | 3.90% | |
Bottom of range [member] | Bank borrowings | ||
Borrowings | ||
Borrowings, interest rate | 2.70% | |
Top of range [member] | Bank borrowings | ||
Borrowings | ||
Borrowings, interest rate | 4.70% | |
Genetron Health | Bottom of range [member] | People's Bank of China | ||
Borrowings | ||
Borrowings, interest rate | 6% | |
Genetron Health | Top of range [member] | People's Bank of China | ||
Borrowings | ||
Borrowings, interest rate | 8% |
Other payables and accruals - S
Other payables and accruals - Summary of Other Payables and Accruals (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Other payables and accruals | ||
Payroll and welfare payables | ¥ 49,302 | ¥ 42,612 |
Accrued professional service fees and listing expenses | 22,151 | 35,368 |
Accrued taxes other than income tax | 3,038 | 2,583 |
Deferred income from ADS depository | 12,449 | 14,995 |
Others | 99,066 | 61,674 |
Total | ¥ 186,006 | ¥ 157,232 |
Other payables and accruals - A
Other payables and accruals - Additional Information (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | |
Other payables and accruals | ||
Deferred Income Amortization Period | 5 years | 5 years |
Proceeds From Deposit Fee | $ 3.4 | ¥ 23 |
Financial instruments with pr_3
Financial instruments with preferred rights - Summary of Movements of Financial Instruments with Preferred Rights (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financial instruments with preferred rights | ||
Beginning Balance | ¥ 0 | ¥ 2,106,334 |
Issuance | 70,026 | |
Changes in fair value recognized in profit or loss | 0 | 2,823,370 |
Changes in fair value due to own credit risk recognized in OCI | 0 | 72 |
Conversion into ordinary shares upon IPO | (4,999,811) | |
Others | 9 | |
Ending balance | ¥ 0 | ¥ 0 |
Financial instruments with pr_4
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) |
Other non-current liabilities_2
Other non-current liabilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Other non-current liabilities | |||
Redemption liabilities | ¥ 9,760 | $ 1,416 | ¥ 8,612 |
Other non-current liabilities -
Other non-current liabilities - Additional information (Details) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | |
Other non-current liabilities | ||||
Ownership percentage of non-controlling interest | 10% | |||
Capital injection from non-controlling interests | ¥ 10,821,000 | |||
Present value of redeemable liabilities | ¥ 7,671,000 | |||
Other investors | ||||
Other non-current liabilities | ||||
Ownership percentage of non-controlling interest | 10% | |||
Capital injection from non-controlling interests | ¥ 10,821,000 | $ 1,667,000 | ||
Genetron Wuxi | ||||
Other non-current liabilities | ||||
Ownership percentage of subsidiary | 90% | |||
Interest rate on redeemable liabilities | 6% |
Cash flow information - Summary
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 flow information - Summa_2
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 |
Commitments - Summary of Capita
Commitments - Summary of Capital Commitments (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Equipment and intangible assets | ||
Commitments | ||
Equipment and intangible assets - Contracted but not provided for | ¥ 162 | ¥ 34,772 |
Commitments - Summary of Future
Commitments - Summary of Future Minimum Lease Payables under Non-Cancellable Leases (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
No later than 1 year | ||
Commitments | ||
Future minimum lease payables | ¥ 853 | ¥ 1,271 |
Later than 1 year but no later than 3 years | ||
Commitments | ||
Future minimum lease payables | 22 | 38 |
Non-cancellable leases not recognized in the financial statements | ||
Commitments | ||
Future minimum lease payables | ¥ 875 | ¥ 1,309 |
Related party transactions - Ad
Related party transactions - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Edigene beijing Inc [Member] | |
Related party transactions | |
Description of nature of related party relationship | A director of this entity is also a director of the Company |
Juventas Cell Therapy Ltd. | |
Related party transactions | |
Description of nature of related party relationship | A director of this entity is also a director of the Company |
Hangzhou ImmuQuad Biotechnologies, LLC | |
Related party transactions | |
Description of nature of related party relationship | A director of this entity is also a director of the Company |
Related party transactions - Su
Related party transactions - Summary of Provision of services (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related party transactions | |||
Provision of services | ¥ 804 | ¥ 1,241 | ¥ 1,521 |
Edigene (Beijing) Inc | |||
Related party transactions | |||
Provision of services | ¥ 804 | 1,185 | 623 |
Others | |||
Related party transactions | |||
Provision of services | ¥ 56 | ¥ 898 |
Related party transactions - _2
Related party transactions - Summary of purchase of goods and services (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Hangzhou ImmuQuad Biotechnologies, LLC | ||
Related party transactions | ||
Purchase of goods and services | ¥ 87 | |
Beijing Shangyi Zhixin Healthcare Management Ltd. | ||
Related party transactions | ||
Purchase of goods and services | ¥ 1,498 |
Related party transactions - _3
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 |
Related party transactions - _4
Related party transactions - Summary of Compensations Paid or Payable to Key Management for Employee Services (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related party transactions | |||
Salaries and other short-term employee benefits | ¥ 11,777 | ¥ 10,238 | ¥ 8,112 |
Contributions to pension plans | 232 | 156 | 107 |
Share-based compensation expenses | 6,682 | 15,729 | 15,679 |
Key management compensation | ¥ 18,691 | ¥ 26,123 | ¥ 23,898 |
Restricted net assets and par_3
Restricted net assets and parent company only condensed financial information - Schedule of Condensed Balance Sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) | Dec. 31, 2018 CNY (¥) |
Non-current assets | |||||||
Total non-current assets | ¥ 266,374 | $ 38,620 | ¥ 270,444 | ||||
Current assets | |||||||
Other receivables and prepayments | 65,431 | 9,487 | 97,895 | ||||
Amounts due from Group companies | 110 | 16 | 597 | ||||
Financial assets at fair value through profit or loss | 157,426 | 22,825 | 151,443 | ||||
Derivative financial instruments | 2,002 | ||||||
Cash and cash equivalents | 176,266 | 25,556 | 639,042 | $ 92,652 | ¥ 1,375,766 | ¥ 139,954 | |
Total current assets | 708,952 | 102,789 | 1,247,175 | ||||
Total assets | 975,326 | 141,409 | 1,517,619 | ||||
Non-current liabilities | |||||||
Total non-current liabilities | 37,103 | 5,380 | 42,477 | ||||
Current liabilities | |||||||
Total current liabilities | 389,867 | 56,525 | 265,090 | ||||
Total liabilities | 426,970 | 61,905 | 307,567 | ||||
Net assets | 548,356 | 79,504 | 1,210,052 | ||||
SHAREHOLDERS' EQUITY | |||||||
Share capital | 61 | 9 | 61 | ||||
Share premium | 6,734,905 | 976,469 | 6,711,234 | ||||
Other reserves | 56,172 | 8,144 | (69,091) | ||||
Accumulated losses | (6,245,016) | (905,442) | (5,436,613) | ||||
Total shareholders' equity | 548,356 | 79,504 | 1,210,052 | 1,692,545 | ¥ (1,778,331) | ||
Parent | |||||||
Non-current assets | |||||||
Interests in subsidiaries | 558,800 | 81,018 | 1,138,922 | ||||
Financial assets at fair value through profit or loss | 27,859 | 4,039 | 25,503 | ||||
Prepayments | 19,766 | ||||||
Total non-current assets | 586,659 | 85,057 | 1,184,191 | ||||
Current assets | |||||||
Other receivables and prepayments | 16,765 | 2,431 | 7,170 | ||||
Amounts due from Group companies | 735 | 106 | 6,713 | ||||
Financial assets at fair value through profit or loss | 83,207 | 12,063 | 91,562 | ||||
Cash and cash equivalents | 4,211 | 611 | 44,691 | $ 6,480 | ¥ 941,541 | ¥ 122,104 | |
Total current assets | 104,918 | 15,211 | 150,136 | ||||
Total assets | 691,577 | 100,268 | 1,334,327 | ||||
Non-current liabilities | |||||||
Amounts due to Group companies | 106,688 | 15,468 | 75,457 | ||||
Total non-current liabilities | 106,688 | 15,468 | 75,457 | ||||
Current liabilities | |||||||
Other payables and accruals | 36,260 | 5,257 | 51,837 | ||||
Amounts due to Group companies | 2,507 | 363 | 1,442 | ||||
Total current liabilities | 38,767 | 5,620 | 53,279 | ||||
Total liabilities | 145,455 | 21,088 | 128,736 | ||||
Net assets | 546,122 | 79,180 | 1,205,591 | ||||
SHAREHOLDERS' EQUITY | |||||||
Share capital | 61 | 9 | 61 | ||||
Share premium | 6,734,905 | 976,469 | 6,711,234 | ||||
Other reserves | 56,172 | 8,144 | (69,091) | ||||
Accumulated losses | (6,245,016) | (905,442) | (5,436,613) | ||||
Total shareholders' equity | ¥ 546,122 | $ 79,180 | ¥ 1,205,591 |
Restricted net assets and par_4
Restricted net assets and parent company only condensed financial information - Schedule of Condensed Income Statements (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Condensed Income Statements Captions | ||||
Administrative expenses | ¥ (266,908) | $ (38,698) | ¥ (227,001) | ¥ (126,318) |
Other income and gains/(losses) - net | (2,666) | (387) | 5,329 | 8,526 |
Finance (costs)/income - net | (108,624) | (15,749) | 15,250 | 22,703 |
Fair value loss of financial instruments with preferred rights | 0 | (2,823,370) | ||
Loss before income tax | (810,630) | (117,530) | (502,598) | (3,069,043) |
Income tax expense | 0 | 0 | 0 | |
Loss for the year | (810,630) | (117,530) | (502,598) | (3,069,043) |
Parent | ||||
Condensed Income Statements Captions | ||||
Administrative expenses | (48,689) | (7,059) | (51,124) | (19,480) |
Other income and gains/(losses) - net | (13,329) | (1,933) | 385 | 833 |
Finance (costs)/income - net | 1,045 | 152 | (479) | (1,230) |
Fair value loss of financial instruments with preferred rights | (2,823,370) | |||
Equity method on loss of subsidiaries | (747,430) | (108,367) | (445,020) | (225,796) |
Loss before income tax | (808,403) | (117,207) | (496,238) | (3,069,043) |
Income tax expense | 0 | 0 | 0 | 0 |
Loss for the year | ¥ (808,403) | $ (117,207) | ¥ (496,238) | ¥ (3,069,043) |
Restricted net assets and par_5
Restricted net assets and parent company only condensed financial information - Schedule of Condensed Cash Flow Statements (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 flows from operating activities | ||||
Cash used in operations | ¥ (460,197) | $ (66,722) | ¥ (524,144) | ¥ (300,897) |
Net cash used in operating activities | (460,197) | (66,722) | (524,144) | (300,897) |
Cash flows from investing activities | ||||
Purchase of wealth management products | (1,180,045) | (171,090) | (1,650,355) | (1,628,558) |
Redemption of wealth management products | 1,165,980 | 169,051 | 1,623,538 | 1,620,924 |
Investment income from wealth management products | 3,366 | 488 | 4,991 | 4,476 |
Purchase of equity security | (13,721) | |||
Purchase of other investments | (28,895) | (19,000) | ||
Purchase of derivative financial instruments | (63,742) | (9,242) | (415,346) | (68,078) |
Settlement of derivative financial instruments | 65,744 | 9,532 | 424,251 | 69,628 |
Others | 3,005 | 436 | (10,566) | (294) |
Net cash used in investing activities | (87,832) | (12,734) | (136,275) | (84,649) |
Cash flows from financing activities | ||||
Proceeds from issuance of ordinary shares | 1,676,816 | |||
Proceeds from ADS depository | 23,069 | |||
Proceeds from issuance of financial instruments with preferred rights | 70,026 | |||
Repurchase of ordinary shares | (4,102) | |||
Proceeds from investors to the Company | 48,617 | 299,051 | ||
Proceeds from exercise of awards | 843 | 123 | 2,169 | |
Payments in relation to listing expenses | (1,000) | (21,691) | ||
Net cash generated from/(used in) financing activities | 71,367 | 10,347 | (58,405) | 1,744,512 |
Net increase/(decrease) in cash and cash equivalents | (476,662) | (69,109) | (718,824) | 1,358,966 |
Cash and cash equivalents at beginning of year | 639,042 | 92,652 | 1,375,766 | |
Exchange differences of cash and cash equivalents | 13,886 | 2,013 | (17,900) | (123,154) |
Cash and cash equivalents at end of year | 176,266 | 25,556 | 639,042 | 1,375,766 |
Parent | ||||
Cash flows from operating activities | ||||
Cash used in operations | (36,359) | (5,272) | (35,706) | (36,241) |
Net cash used in operating activities | (36,359) | (5,272) | (35,706) | (36,241) |
Cash flows from investing activities | ||||
Investment in subsidiaries | (24,302) | (3,523) | (886,610) | (1,006,010) |
Purchase of wealth management products | (274,955) | (21,858) | ||
Redemption of wealth management products | 199,096 | 0 | ||
Investment income from wealth management products | 1,467 | 0 | ||
Purchase of equity security | (13,721) | |||
Purchase of other investments | (25,894) | 0 | ||
Purchase of derivative financial instruments | (350,744) | (68,078) | ||
Settlement of derivative financial instruments | 359,165 | 69,628 | ||
Others | (7,106) | (1,030) | (66) | (294) |
Net cash used in investing activities | (31,408) | (4,553) | (978,541) | (1,040,333) |
Cash flows from financing activities | ||||
Proceeds from issuance of ordinary shares | 1,676,816 | |||
Proceeds from ADS depository | (23,069) | |||
Proceeds from issuance of financial instruments with preferred rights | 70,026 | |||
Repurchase of ordinary shares | (4,102) | |||
Proceeds from investors to the Company | 48,617 | 299,051 | ||
Proceeds from exercise of awards | 843 | 123 | 2,169 | 0 |
Proceeds from loans from Group companies | 25,000 | 3,624 | 75,457 | 0 |
Payments in relation to listing expenses | (21,691) | |||
Net cash generated from/(used in) financing activities | 25,843 | 3,747 | 126,243 | 2,043,169 |
Net increase/(decrease) in cash and cash equivalents | (41,924) | (6,078) | (888,004) | 966,595 |
Cash and cash equivalents at beginning of year | 44,691 | 6,480 | 941,541 | 122,104 |
Exchange differences of cash and cash equivalents | 1,444 | 209 | (8,846) | (147,158) |
Cash and cash equivalents at end of year | ¥ 4,211 | $ 611 | ¥ 44,691 | ¥ 941,541 |
Restricted net assets and par_6
Restricted net assets and parent company only condensed financial information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Restricted net assets and parent company only condensed financial information | |
Percentage of net profit after offsetting any prior year losses and transfer to the statutory surplus reserve fund | 10% |
Percentage of Statutory reserves balance not exceeds of the company's registered capital | 50% |